Lake Oswego City Council Meeting - August 5, 2025

The Lake Oswego City Council met on August 5, 2025, to address a range of items including a WIFIA loan for the wastewater treatment plant, a speed reduction program, annexation tree restoration fees, and an update on tree code amendments. The meeting included public testimony, council deliberation, and votes on several key issues.

Consent Calendar

• Unanimously adopted the consent agenda, which included the 2025 council goals second quarter update and draft meeting minutes from June 3 and July 14, 2025.

Public Comments & Testimony

• Diane (public comment): Expressed strong opposition to the El Nito project for allegedly advertising housing preferences for families and people of color, which she argued violates the Fair Housing Act. She stated that the affirmatively furthering fair housing rule has reverted to its 1994 non-discrimination meaning and that disparate impact cannot be used. Her time expired before she could finish.
• Charlotte Williams (public hearing on 20 is plenty): Urged the council to check the results of similar programs, noting that lower speed limits do not always result in slower driving and may lead to non-compliance.
• Matt Williams (public hearing on 20 is plenty): Expressed support for reducing speed limits on neighborhood collector roads, citing that after hedges were removed for sight distance, vehicles now travel faster (35 mph) than before (20-25 mph).
• Jesse Davis (applicant, Kenny Street annexation): Testified that tree removal was not premeditated; the property was originally planned to stay in Clackamas County but a failing septic system forced annexation and triggered city codes. He argued the $37,860 restoration fee is excessive, especially compared to large developers who clear-cut with minimal penalties. He requested a reduction and consideration of the three-to-one mitigation ratio.
• Matt Williams (applicant, Lakeview Boulevard annexation): Stated that as new homeowners, they were unaware of the tree removal permitting process before annexation. He requested reconsideration of the $26,696 restoration fee, emphasizing their family's commitment to the community.

Discussion Items

• WIFIA Loan for Wastewater Treatment Plant (Resolution 25-37):

  • Director of Special Projects Stefan Brodes and Finance Director Sean Cross presented the funding plan for the wastewater treatment facility. The WIFIA loan (up to $123.48 million) provides deferred payment for rate stability, allowing a 3.9% annual sewer rate increase ($3.50/month) versus a 35% increase ($31.40/month) if funded solely through municipal bonds. Key advantages include no prepayment penalties, flexible draw timing, and federal permitting assistance. The loan will be drawn as needed, with principal payments deferred up to five years after substantial completion.
  • Councilor Corrigan clarified the interest rate (1% over 30-year Treasury rate, 35-year loan) and the ability to lock in a lower rate before drawing funds. Councilor Afkin asked about project delays—repayment schedule is based on substantial completion, and contract provisions will penalize late construction.
  • Motion to adopt Resolution 25-37 passed 5-0.

• 20 is Plenty Speed Reduction Program (Ordinance 2966):

  • City Engineer Will Farley presented the proposed ordinance to lower the residential statutory speed limit from 25 to 20 mph on local streets and eligible neighborhood collectors. He outlined criteria based on ORS 810.18010 (used by counties) to avoid speed traps and ensure consistency: volume <2,000 vehicles/day, 85th percentile speed <30 mph, and road under city jurisdiction. Staff recommended a phased approach, starting with 135 signs on local streets and 230 on neighborhood collectors, with implementation taking up to 12 months.
  • Council discussion: Mayor Buck, Councilor Afkin, and Councilor Verdick supported a consistent 20 mph on all eligible streets, including neighborhood collectors, citing pedestrian safety and the need to prepare for increased density. Councilor Corrigan favored 20 mph everywhere, noting that the city will annex more county roads over time. Councilor Windland opposed, arguing that data shows minimal impact on driver behavior, that the $175,000-$225,000 cost could be better spent on other safety projects, and that enforcement resources are limited.
  • Motion to direct staff to amend the ordinance to include all eligible streets and bring back a revised version passed 4-1 (Councilor Windland dissenting).

• Annexation Tree Restoration Fees (Ordinances 2958 and 2961):

  • Staff presented options to reduce the previously set restoration fees: reduce by half, by two-thirds, or waive entirely. Staff recommended consistent treatment for both properties. Councilor Corrigan noted that 882 acres of eligible but unannexed land exist, requiring careful precedent.
  • Council discussion: Councilor Windland proposed reducing the fee to 25% of the original and changing mitigation from three-to-one to one-to-one, noting that the trees would likely have been approved under a type two permit had the applications been submitted in advance. Councilor Afkin emphasized the need to balance welcoming new residents with not signaling that pre-annexation tree removal has no consequences. Councilor Verdick concurred, citing the importance of code compliance.
  • Motion for Kenny Street annexation (Ordinance 2958) passed 5-0: reduce restoration fee to 25% (approx. $9,465) and change mitigation to one-to-one, with $172 per tree not planted on site. Motion for Lakeview Boulevard annexation (Ordinance 2961) passed 5-0 with similar terms.

• Tree Code Amendments Update (Study Session):

  • Consultant Sachi Arakawa (Cascadia Partners) presented the project scope, schedule, and key issues for updating the tree regulations. The project will focus on clear and objective standards for housing, consistent permitting, incentives for tree preservation, soil volume standards, canopy standards for commercial development, and evaluating wildfire-safe landscaping practices. Additional issues include addressing hazardous trees, scaling mitigation to environmental value, and options for dead/dying trees on neighboring properties.
  • Council feedback: Councilor Verdick emphasized street trees for shade and cooling. Councilor Afkin asked about scaling mitigation to environmental value and balancing mental health concerns from ice storm damage. Councilor Windland stressed property rights, housing cost implications, and fire prevention. Councilor Corrigan inquired about best practices from other cities and the impact of new housing laws (HB 2138). The mayor noted the need for clear and objective standards education and a city arborist service for homeowners.

Key Outcomes

• Resolution 25-37 (WIFIA Loan): Approved 5-0. Authorizes execution of a loan agreement with EPA for up to $123,480,000 for the wastewater treatment plant.
• Ordinance 2966 (20 is Plenty): Council directed staff to amend the ordinance to include all eligible streets (local and neighborhood collectors) and return for final approval. Vote 4-1.
• Ordinance 2958 (Kenny Street Annexation): Approved 5-0. Restoration fee reduced to 25% of original ($9,465); mitigation changed to one-to-one with $172 per tree not planted on site. Staff directed to return with final ordinance and findings on September 2, 2025.
• Ordinance 2961 (Lakeview Boulevard Annexation): Approved 5-0. Restoration fee reduced to 25% of original ($6,674); mitigation changed to one-to-one with $172 per tree not planted on site. Staff directed to return with final ordinance and findings on September 2, 2025.
• Tree Code Amendments: Next steps include best practices review, stakeholder engagement (tree task force, focus groups, open house), and development of code concepts. Additional council work sessions will be scheduled.