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HomeMy WebLinkAboutAgenda Item - 2026-02-17 - Number 07.2 - South Shore Fire Station Referral 7.2 V —� 0 o�� E 0 COUNCIL REPORT OREGO� Subject: Submitting a ballot measure to voters for the May 19, 2026, election for a general obligation bond to replace the South Shore Fire Station. Meeting Date: February 17, 2026 Staff Member: Kristine Artman, Assistant Fire Chief Erica Tatoian, Special Counsel Report Date: February 6, 2026 Department: Fire Department City Attorney's Office Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑X Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction Supported by South Shore Fire Station Task Force ❑ Consent Agenda (2025) Recommendations Staff Recommendation: Adopt Resolution 26-08 Recommended Language for Motion: Move to adopt Resolution 26-08 Project/ Issue Relates To: South Shore Fire Station Issue before Council (Highlight Policy Question): Shall the City Council refer Resolution 26-08 to the May 2026 ballot for voter approval? ❑X Council Goals/Priorities ❑Adopted Master Plan(s) ❑Not Applicable BACKGROUND Constructed in 1971, South Shore Fire Station is the oldest of Lake Oswego's four fire stations. Over the last forty years, through strategic investment, the Fire Department has extended the life of this facility. However, there are substantial structural and life-safety deficiencies that cannot be addressed through renovation. These improvements are needed to maintain Lake Oswego Fire Department's ability to effectively respond to medical, fire, and life safety emergencies. Respect. F,. PI'Pr,_P Trust. Se'vi. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 Following facility assessments and recommendations from the community South Shore Fire Station Task Force, the City Council has determined that the existing building has reached the end of its functional life and can no longer effectively support modern emergency services. The City of Lake Oswego is seeking voter approval for a $20.6 million general obligation bond to replace the South Shore Fire Station (Station 212). Project costs have been refined through extensive work with contracted team at Hennebery Eddy Architects and Bremik Construction. DISCUSSION During the February 3, 2026, City Council meeting, Council directed staff to prepare a Ballot Measure for Council consideration. The ballot measure as proposed would give voters the decision to authorize the City to issue general obligation bonds not to exceed $20.6 million to finance the replacement of the South Shore Fire Station. Election Deadlines The election filing deadlines that staff will be following for the May 19, 2026, election are as follows: • February 17: Council decision whether to refer to voters • February 27: City will file a ballot title for publication of notice. o Electors have seven (7) business days to challenge a ballot title. • February: Submit Communication materials to the Secretary of State for "Safe Harbor" review. • March 19: Last day a City may file a notice of measure election, which contains the ballot title and an explanatory statement. The notice may only be filed upon completion of the ballot title challenge period. • March 23: Last day for submission in the county voters'pamphlet. City staff may not file or assist in the filing of arguments in support or opposition. • February to May: City responsible for public information distribution. • May 19: Election Day FISCAL IMPACT Project Fiscal Impact As proposed, the total principal amount of the bond will not exceed $20.6 million. Bond funds are restricted by law. They may only be used for the costs associated with the South Shore Fire Station project, including design, construction, and the temporary relocation of crews during the build phase. Resident Tax Rate: The estimated cost to taxpayers is approximately$0.19 per$1,000 of assessed value. Based on a $600,000 assessed home value, this equates to approximately$114 per year, or$9.50 per month. Respect. Excellence. Trust. Service N 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 3 Referral Fiscal Impact • Polling contracted through FM3 ($65,500.00) • Communications contracted through Quinn Thomas ($50,000.00) • Elections Costs ($1,000) If City Council elects not to move forward with the proposed Resolution for the May 2026 ballot, the City will end all expenditures, including staff time, on the measure effective immediately. RECOMMENDATION Staff recommend adoption of Resolution 26-08. ATTACHMENTS 1. Resolution 26-08 2. Proposed Caption, Question, and Summary 3. Proposed Explanatory Statement Respect. Excellence. Trust. Service 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 Resolution 26-08 RESOLUTION OF THE LAKE OSWEGO CITY COUNCIL SUBMITTING TO THE VOTERS AT THE MAY 19, 2026, ELECTION A MEASURE AUTHORIZING ISSUANCE OF GENERAL OBLIGATION BONDS IN AN AMOUNT NOT TO EXCEED $20.6 MILLION TO FINANCE THE REPLACEMENT OF THE SOUTH SHORE FIRE STATION. WHEREAS, the South Shore Fire Station (Station 212), constructed in 1971, is the oldest fire station for the City of Lake Oswego and has reached the end of its useful life; and WHEREAS, the City Council and the South Shore Fire Station Task Force have identified significant structural and operational deficiencies, including a lack of seismic resilience, inadequate living quarters for a diverse workforce, and insufficient decontamination zones to protect firefighters from cancer-causing carcinogens; and WHEREAS, the City Council finds that the most cost-effective solution to ensure long-term public safety and operational readiness is the demolition of the existing structure and the construction of a modern, seismically sound fire station on the current site; and WHEREAS, the estimated cost to design, construct, and equip the new facility, including temporary relocation costs during construction, is $20,600,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The above recitals are incorporated into this resolution. Section 2. The City Council refers to the May 19, 2026, election a ballot measure authorizing the City to issue general obligation bonds not to exceed $20.6 million to finance the replacement of the South Shore Fire Station. Measure is attached to this Resolution and adopted by reference. Section 3. The City Manager, City Attorney, and City Recorder shall take all steps on behalf of the City as necessary to carry out the intent and purposes of this resolution in compliance with state and local law including but not limited to publishing the ballot title as provided by state law, publishing notice of the measure as required, submitting an explanatory statement, and filing this measure with the appropriate County Elections Divisions. Section 4. 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 17th of February, 2026. Resolution 26-08 Page 1 of 2 AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Laura) Hawkins, City Recorder APPROVED AS TO FORM: Erica Tatoian, Special Counsel Resolution 26-08 Page 2 of 2 ATTACHMENT 2 South Shore Fire Station—Ballot Language Caption: 10/10 Funding South Shore Fire Station Reconstruction to Improve Community Safety Question: 19/20 Shall Lake Oswego rebuild the South Shore fire station to improve community safety by issuing $20.6 million in bonds? If the bonds are approved, they will be payable from taxes on property or property ownership that are not subject to the limits of sections 11 and 11b, Article XI of the Oregon Constitution. Summary: 169/175 If approved, this measure would permit the issuance of general obligation bonds to demolish the existing South Shore Fire Station (built in 1971) and build a replacement station. A new station would modernize the building to keep response times low, provide upgraded safety for firefighters, and meet seismic standards. A task force evaluated alternative options, including continuing renovations and closing the station, and recommended reconstructing the station. Today's building codes and environmental laws make remodeling more expensive than new construction. In addition, the crew quarters must be rebuilt as they cannot be reinforced to meet today's seismic standards for essential facilities, leaving firefighters and the community vulnerable in an earthquake. If the measure is rejected, the current station will remain in service as long as it is safe to be used, but it will likely need to be closed in the future. The bonds are estimated to cost $0.19 per $1,000 of assessed property value annually. Actual rates may vary based upon interest rates and changes in assessed value. ATTACHMENT 3 South Shore Fire Station—Explanatory Statement Explanatory Statement: 458/500 Background of South Shore Fire Station Constructed in 1971, the South Shore Fire Station, located at 1880 South Shore Boulevard, is the oldest of Lake Oswego's four fire stations. While the station primarily serves the southeast quadrant—including Lakeridge High School, Hallinan Elementary School, Luscher Farm, Lake Oswego Recreation and Aquatic Center, Mary's Woods, and the Stafford Retirement Community. South Shore Fire Station functions as part of a city-wide emergency response system. Personnel, vehicles, and equipment from this station respond to critical incidents and medical emergencies throughout the entire Lake Oswego community. Facility Deficiencies & Earthquake Safety A City Council-appointed Community Task Force evaluated the facility and determined the South Shore Fire Station has reached the end of its useful life. The building does not meet current seismic standards for essential public facilities such as fire stations, schools, or hospitals. The Task Force found that existing crew quarters cannot be reinforced to meet essential facility seismic standards. After evaluating alternatives, the Task Force determined that renovating the existing structure was not economically feasible compared to the cost of constructing a new, earthquake safe facility. Health & Operational Improvements If approved, the measure would fund the construction of a new facility designed to include: • Decontamination Areas: Dedicated spaces designed to reduce firefighter exposure to cancer-causing materials commonly encountered when fighting fires. • Modern Vehicle Bay: Expanded storage space to accommodate modern emergency vehicles and equipment like the marine rescue boat and trucks used for wildfire response that do not fit in the current 1971 structure. • Operational Readiness: Facility designed to maintain the city's current emergency response goals, including the target of reaching 90% of high-priority calls within 8 minutes or less. Proposed Measure & Financial Impact After evaluating alternatives, including renovation and closing the South Shore Station, the Task Force recommended a full replacement funded by general obligation bonds because current building codes and environmental regulations make remodeling the 1970s materials more expensive than new construction. The City Council reviewed the Task Force recommendations and submitted this measure for voter consideration. Measure XX-XXX authorizes the issuance of up to $20.6 million in general obligation bonds to demolish the existing structure and construct a new station at the current location. The bonds are estimated to cost property owners approximately $0.19 per $1,000 of assessed property value annually. For a home with an assessed value of$600,000, the estimated annual cost would be $114. If the measure is rejected, the $20.6 million in bonds will not be issued, and the property tax will not be imposed. The current station would remain in service only as long as it is deemed safe for use, but it would not be upgraded to meet modern seismic, health, or safety standards.