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HomeMy WebLinkAboutApproved Minutes - 2025-07-15 F� FO O �tL CITY COUNCIL REGULAR MEETING _�` n MINUTES July 15, 2025 °REGO\ 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 3:08 p.m. on Tuesday,July 15, 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 Wendland, Verdick, Corrigan (via Zoom), Rapf, and Afghan. Councilor Mboup was excused. Staff Present: Megan Phelan, Assistant City Manager; Ellen Osoinach, City Attorney; Kim Vermillion, Interim City Recorder; Stefan Broadus, Director of Special Projects; Shawn Cross, Director of Finance; Erik Olson, Long Range Planner;Jessica Numanoglu, Community Development Director; Kristine Artman, Assistant Fire Chief; Madison Thesing, Deputy City Manager Others Present: Shye Ruder, Education and Outreach Director— Fair Housing Council Oregon; Miranda Everitt, FM3 Research; Eric Cress, UDP; Bob Naito, Naito Development; Will Naito, Naito Development 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PUBLIC COMMENT None. 5. CONSENT AGENDA 5.1 Resolution 25-36,A Resolution of the City Council of the City of Lake Oswego Authorizing an IGA with Broadband User Groups. Councilor Wendland 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 Wendland,Verdick, Corrigan, Rapf and Afghan voting'aye', (6-0). 6. ITEMS REMOVED FROM CONSENT AGENDA No items were removed from the Consent Agenda. City Council Regular Meeting Minutes Page 1 of 8 July 15, 2025 7. COUNCIL BUSINESS 7.1 Resolution 25-37,Authorizing the Execution and Delivery of the WIFIA Loan with the EPA for the Wastewater Treatment Facility Project in an Amount not to exceed $123,480,000. Director of Special Projects Broadus reviewed the Resolution, which would authorize City Staff to execute a Water Infrastructure Finance and Innovation Act (WIFIA) loan with the U.S. Environmental Protection Agency(EPA). Staff responded to questions from Councilors as follows: • Particulars of the loan were not included in the Council report because the City was currently working with the EPA and City attorneys on drafting the agreement.The City was one to two months from executing the loan with minor comments still being coordinated among the EPA, City counsel, and consultants. • Even if Council approved the loan agreement, the City would not draw on the loan until there was a project. Council would be authorizing future debt but not incurring debt through the approval. If the project did not start, the City would not draw funds and there would be no debt to repay. • Staff was bringing the authorization before Council now due to timing.The WIFIA agreement was like issuing a bond and in the past, Council had authorized Staff to issue bonds. Staff could bring back a draft of the agreement but aimed to complete the agreement within the federal fiscal year, which ended in September.The EPA side was slowing down and other jurisdictions experienced delays in closings. • The loan worked similarly to a line of credit.The City would not pay anything until it started drawing. If the project started in March of 2026 and made its first draw then,that was when the interest would begin accruing.The loan was advantageous because payments would not begin until after substantial completion of the project,with an additional option to defer repayments for five more years.This timing would help customer rates and almost align with when the lowest bonds drop off. • The loan was part of the City's funding plan for the project.The City would be able to undertake the project without the loan, but it would have to raise customer rates higher upfront for more traditional financing. It was a large amount of money,though not the largest the City had taken out. The bonds for the LOIS sewer project were the largest,though issued across two years. Councilors expressed support for the funding but were concerned about being asked to authorize the agreement without the terms and conditions. City Manager Bennett noted that authorizing the loan gave the City more flexibility and control. Staff was concerned that if the City waited,the current climate at federal agencies meant the loan option would no longer be available to the City. Finance Director Cross confirmed that Staff could show a draft of the loan agreement to the Council and the public by August 5, 2025 without compromising negotiations with the EPA. Bennett said Staff would return to the Council on August 5th. Once the loan was approved,the interest rate ceiling would be locked, meaning that if interest rates dropped, then the City could take advantage of the lower rates. However, if the interest rates rose and the City had not locked then it could be vulnerable to higher City Council Regular Meeting Minutes Page 2 of 8 July 15, 2025 rates. After discussion, Councilors agreed they wanted to review a draft agreement and summary term sheet before voting on the Resolution, as well as information Councilors could use to easily explain about approving a WIFIA loan. Mayor Buck moved to continue the consideration of Resolution 25-37 until August 5, 2025 date certain and direct Staff to return at that time with a draft agreement and a summary term sheet. Councilor Wendland seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Wendland,Verdick, Corrigan, Rapf, and Afghan voting'aye', (6-0). 7.2 Ordinance 2958,An Ordinance Annexing to the City of Lake Oswego One Parcel Consisting of 0.44 acres at 5450 Kenny 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 25-0001). Mayor Buck moved to reconsider the July 1, 2025,vote enacting Ordinance 2958. Councilor Verdick seconded the motion.A voice vote was held,and the motion passed,with Mayor Buck and Councilors Wendland,Verdick, Corrigan, Rapf and Afghan voting'aye', (6-0). Mayor Buck moved to tentatively approve Ordinance 2958 and direct Staff to return on August 5, 2025,for potential amendment. Councilor Rapf seconded the motion. A voice vote was held, and the motion passed,with Mayor Buck and Councilors Wendland,Verdick, Corrigan, Rapf and Afghan voting 'aye', (6-0). 7.3 Ordinance 2961,An Ordinance Annexing to the City of Lake Oswego One Parcel Consisting Of 0.55 Acres At 6210 Lakeview Blvd; 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 25-0002). Mayor Buck moved to reconsider the July 1, 2025 vote enacting Ordinance 2961. Councilor Verdick seconded the motion.A voice vote was held,and the motion passed,with Mayor Buck and Councilors Wendland,Verdick, Corrigan, Rapf and Afghan voting'aye', (6-0). Mayor Buck moved to tentatively approve Ordinance 2961 and direct Staff to return on August 5, 2025 for potential amendment. Councilor Verdick seconded the motion.A voice vote was held, and the motion passed,with Mayor Buck and Councilors Wendland,Verdick, Corrigan, Rapf and Afghan voting'aye', (6-0). 8. STUDY SESSION 8.1 Fair Housing Policy and Education (LU-25-0001) The Fair Housing Council Oregon's Education and Outreach Director Ruder presented the Council Report on Affirmatively Furthering Fair Housing (AFFH)via PowerPoint, providing background on the Fair Housing Council of Oregon (FHCO), and the history of housing across the state and locally, as well as Federal and State legislation enacted to ensure fair housing. Councilor Rapf asked if other communities had restrictive covenants and whether work was being done to make it easier to remove restrictive covenants from deeds. Ruder confirmed many communities in Oregon did employ restrictive covenants which were part of the mechanism that maintained City Council Regular Meeting Minutes Page 3 of 8 July 15, 2025 segregation. People were working towards making it easier to remove the language from deeds. City Manager Bennett believed some Lake Oswego residents were active in the movement to make the process easier. Currently, residents had to go to the County to apply for the change. Ruder noted that while Oregon added protections for LGBTQIA+, federal interpretations can shift. Having protections at the State level, and removing restrictive covenants locally, ensured coverage in case federal protections were weakened. Ruder resumed the presentation, reviewing Federal Housing Authority loan history and its connection to AFFH, prohibited practices, common violations, and disparate impact policies and court decisions.The presentation also included a discussion of Oregon's Goal 10 and fair housing, its relationship to the Housing Needs Analysis (HNA) and Housing Production Strategy(HPS), barriers to needed housing types, and resources to combat NIMBYism. She concluded with a review of FHCO resources on Code and zoning review, identifying discrimination, education,technical assistance, advocacy, and enforcement. Associate Planner Olson thanked Ms. Ruder for the presentation, noting the importance of viewing issues in the broader context of Federal and State law and their connection to fair housing, since the City's commitments in the HPS were also commitments to affirmatively further fair housing. Councilor Afghan complimented Ms. Ruder on her presentation. Mayor Buck appreciated the information and noted it was critical to understanding Lake Oswego's demographics. It was important to highlight historical and contemporary barriers to fair housing and communicate the steps the City was taking to rectify those barriers. Olson reviewed options for amending the Comprehensive Plan to include an AFFH policy, identified as Strategy 13 in the HPS adopted in November 2024. The policy would codify a larger commitment to fair housing and was similar to those in other cities. While a more comprehensive review of the housing chapter was needed due to State changes, Staff recommended adopting the draft AFFH language in the Council report without substantive changes as a near-term step. With Council direction,the language would proceed to a Planning Commission public hearing on September 8. Staff responded to questions from Councilors as follows: • There were action items that corresponded to the AFFH policy. When making a Code or Zoning Map amendment, applicable Comprehensive Plan policies had to be identified, and compliance shown. Housing-related actions would also need to respond to these policies to the extent the proposed action complied. • The City was not out of compliance with any federal or State Fair Housing law. However,through its HPS,the City had committed to adopt an AFFH policy as a Comprehensive Plan Amendment, embedding its existing commitments to abide by Federal and State law. It was not a policy that needed to be responded to immediately,which was why it was included in the HPS.The Comprehensive Plan was typically only reviewed when amendments were proposed, so nearly every project through long-range planning would need to respond to this policy in addition to other applicable policies. • The City already allowed manufactured and mobile homes, but there were very few in Lake Oswego. Although now allowed by State law,the City had not approved one recently because land values were high. City Council Regular Meeting Minutes Page 4 of 8 July 15, 2025 • Comprehensive Plan policies applied any time the Code was amended and affected housing or land use regulations, requiring the City to show compliance with City policies.The City always had to comply with State law, and adding this verbiage would call out Federal and State housing law, require findings, keep it top of mind, and show the community that fair housing was a Lake Oswego value. • The City had always followed the law, and its policies did not discriminate based on a protected class. Other strategies in the HPS were designed to take credit for what the City was already doing. • The language as it existed was not a development or zoning standard. Policy language was often aspirational and helped Planning Staff respond. If the City created specific policy criteria, it could become more impactful, but it would be a burden to create specificity.The HNA and HPS were intended to bring the City into compliance with the State Fair Housing law. • The AFFH policy would guide the City,with more specific clear and objective items to come when adopting tangible amendments, policies, or programs to fulfill the HPS. • There was a need for housing at all different income levels.The City was responding to the needs identified in the HNA through zoning and strategies recommended in the HPS.The HNA identified a need for 2,000 units,with one-third at low-income, one-third at middle-income, and one-third at upper-income levels. • Policies such as SDC waivers had been adopted to incentivize affordable housing,which was addressed at the policy level rather than project-by-project.Affordable housing and fair housing were overlapping but distinct topics. • A major challenge to creating an inclusive community was the high value of land in Lake Oswego, making it difficult for developers to build the types of housing identified in the HNA. • The State had not raised issues with what the City submitted for the HPS. • The policy and commitment were viewed as leadership that reflected City values, would drive future Code modifications, and created a framework for intentional decisions and actions the community could point to in the future. • The Fair Housing Council conducted a bus tour in Portland, stopping at different sites to discuss histories and policies, and asked participants to consider which policies adopted today would be looked back on fifty years from now.The Fair Housing Council's discussion was about creating policies that future generations would recognize as intentional decisions to change the community. Councilors discussed the report and the proposed policy, agreeing it was important to recognize errors of the past while also communicating all that the City was doing to change.They noted the value of acknowledging history while showing progress through commitments already underway. Councilor Rapf stressed the importance of moving beyond the historical narrative and highlighting the progressiveness and positive actions the City had taken. Olson stated that the proposed language did not require a substantive change to the Comprehensive Plan. It was a surgical amendment that aligned with the HPS and embedded existing commitments City Council Regular Meeting Minutes Page 5 of 8 July 15, 2025 without triggering a larger review process. State legislation could significantly change the HNA framework in the future, requiring a comprehensive update to the HNA, HPS, and Comprehensive Plan. Bennett added that the current action was intentionally narrow.A broader update to the Comprehensive Plan would be a much larger process, and Staff was recommending a targeted amendment now to ensure the City articulated its values while managing other major long-range planning projects. Mayor Buck asked whether the Housing section of the Comprehensive Plan narrative should also be updated. Olson responded it would eventually be necessary. Bennett noted a broader update would require more time and resources. Mayor Buck suggested that the City provide housing resources on the City's website similar to other jurisdictions. Olson replied the City could work with FHCO to provide educational resources and identify venues to share them. Mayor Buck noted Council was on board with the very precise recommendation as proposed going to Planning Commission. 8.2 Polling Update on South Shore Fire Station Assistant Fire Chief Artman introduced the update on the community outreach efforts related to the South Shore Fire Station project and the continued community engagement process. Ms. Everitt presented via PowerPoint the polling results of 410 Lake Oswego voters on replacing the South Shore Fire Station. Before receiving information, 54 percent supported a bond measure.After hearing details and positive messaging, support rose to 59 percent,with more than one third firmly in favor.The survey tested demographics, ideology, party affiliation,willingness to pay about 100 dollars per household per year which represented a $18 million bond, and message effectiveness. Voter priorities included safety, emergency response, and accountability. Positive messaging about earthquake safety,fast response for fires and heart attacks, and the poor condition of the current station significantly increased support. Negative arguments reduced support, showing the importance of avoiding strong opposition. Placing the bond on either May or November 2026 ballots was found to be viable, so timing should be based on internal considerations and not polling. Overall,the poll demonstrated that with clear, outcome focused communications, a bond measure for the new fire station is likely to be viable. Deputy City Manager Thesing stated the survey was meant as a baseline that polled figures up to $25 million and to test whether a 2026 ballot measure was viable. Staff was gauging community support while Assistant Chief Artman worked on building design. The next phase in community engagement was outreach and education with the Fire Department highlighted at farmers markets, concerts, senior living centers, and other community events to strengthen support. Another poll later in the year would test progress after outreach, and Council would then decide on the May or November 2026 ballot for the bond measure. City Manager Bennett explained that if Council put the bond measure on the May ballot,the City could potentially levy taxes in 2026 to actually begin the construction project. If Council decided on the November ballot,the six-month delay in the election would delay construction causing a full year delay in the project. City Council Regular Meeting Minutes Page 6 of 8 July 15, 2025 Councilors discussed messaging for the bond and the need for the project to deliver a safe,functional fire station that would last 50 years and meet the Fire Department's needs without including unnecessary bells and whistles. Voters wanted a safe and effective critical facility, but the polling showed that swing voter support may dip if lower-priority items were included. Councilor Corrigan believed informing voters that there was no path to remodel the existing fire station was important. Miranda Everitt, FM3, clarified that the survey used the term "supporting" which implied maintaining response times if the station went offline. Bennett agreed Council needed to remain updated on the entire process, know which critical design points Staff would need Council direction on and especially provided realistic per-square-foot costs rather than abstract numbers because the City needed to target $100 to$150 for the average household,which from polling was the number target people would vote on. Deputy City Manager Thesing added the $25 million figure was based on comparables the Task Force used. Currently,there was no building design, transition costs, etc. and the City wanted to build trust rather than promote an incomplete picture. Councilor Afghan noted the first number floated, sticks, and the consultants needed to know a reasonable scope for a 50-year station at the minimum number was needed.The scope should drive the budget, not the budget driving the scope.The lower the cost figure,the higher the yes votes and having a fire station was critical. The Council recessed from 5:20 p.m. to 5:35 p.m. 9. INFORMATION FROM COUNCIL Councilor Afghan reported that the Community Health and Resiliency Board kicked off last week with good attendance.The Wednesday Concert at Foothills was a great event and he thanked the sponsors as well as City Staff. Councilor Wendland reported on the first Tree Committee meeting, noting that while focused on the Urban Forestry Plan goals,the Committee should be conscious to coincide its efforts with the different goals of the entire city. He encouraged residents to contact him with any input. 10. REPORTS OF OFFICERS City Manager Bennett thanked the Parks and Recreation Staff for their work during the recent heat advisory.The now open Lake Oswego Recreation and Aquatic Center(LORAC) meant the City could offer a cooling center that was open from early in the morning until 9 p.m. Council would meet on August 5, but Staff would work to ensure the meeting ended by 5:30 pm so Councilors could attend National Night Out activities. She introduced the 2025 Kincaid Intern Emma Campbell who would be organizing many of the Night Out activities. 11. ADJOURNMENT, CITY COUNCIL Mayor Buck adjourned the City Council Meeting at 5:39 p.m. City Council Regular Meeting Minutes Page 7 of 8 July 15, 2025 Respectfully submitted, pw, Laural Hawkins, City Recorder Approved by the City Council on October 21, 2025. Joseph M. uck, Mayor City Council Regular Meeting Minutes Page 8 of 8 July 15, 2025