Lake Oswego City Council Meeting Summary - November 18, 2025

The Lake Oswego City Council met on Tuesday, November 18, 2025, at 8:00 AM to discuss food insecurity resources following SNAP benefit uncertainty, adopt master fees and charges for 2026, and consider four code concepts for tree regulation amendments to comply with state law. The meeting included presentations from Assistant City Manager Megan Phelan, Finance Director Cross, Public Works Director Rooney, and consultants from Cascadia Partners. Council provided direction on several items and next steps were identified.

Food Insecurity and SNAP Benefits

• Assistant City Manager Megan Phelan presented options to address food insecurity after SNAP benefits were in flux. Options included: utility billing assistance (37 participants currently, reduced bills by 50% for those at or below 60% state median income; temporary hardship assistance up to $200/month for two months administered by St. Vincent DePaul), allocating $20,000 in remaining municipal grant funds to Hunger Fighters Oregon, expanding Meals on Wheels meals ($8.50/meal), and launching a community campaign.
• Council discussed improving website navigation for assistance resources and expressed a preference to hold financial resources for future needs while proceeding with communication efforts. Staff will return with an amended grant resolution if council directs allocation.

Master Fees and Charges for 2026

• Finance Director Cross presented proposed fee increases indexed to CPI and construction cost indices: stormwater 3%, street 3.2% (using ENR 20-cities index), sewer 3.9%, and water 2%. The average utility bill would increase by approximately $6.08 per month (based on 10 CCF water and 8 CCF sewer usage).
• Council discussed street sweeping concerns, noting leaves accumulating on arterials like Iron Mountain. Director Rooney acknowledged equipment limitations (three sweepers with one often down) and increased workload from new median trees on Boones Ferry. Council requested follow-up on specific streets.
• Council also discussed pavement condition index (PCI) and the need for additional street funding. They directed staff to prepare an analysis of revenue options, including potential franchise fees on city utilities, for consideration in 2026 with implementation for 2027 rates.

Tree Regulation Amendments

• Consultant Sarah Goldstein (Cascadia Partners) presented four code concepts to create clear and objective standards for needed housing, per state law (HB 2138). The project aims to preserve the city's 50% tree canopy while supporting development.
• Concept 1: Clear and Objective Standards for Residential Development. Proposed two options: retain a percentage of total trees on the lot or a percentage of total diameter at breast height (DBH). Small lots (5,000 sq ft or less) would be exempt from building envelope tree retention. Bonus credits for retaining native trees (125% DBH credit). Council generally supported the concept and the two-track approach (clear and objective for housing, discretionary for other removals). Some councilors questioned the 5,000 sq ft threshold and requested case studies to determine appropriate retention percentages. No final percentages were set.
• Concept 2: Tree Preservation Incentives. Proposed incentives such as small dimensional adjustments (e.g., setbacks, height) or exemption from public notice and appeals for projects retaining 50% or more trees. Council expressed support for exploring on-site stormwater management credits (as used in Milwaukee) but did not favor dimensional adjustments or appeals exemptions. Staff to vet stormwater credits with engineering.
• Concept 3: Appeals Process Changes. Proposed reducing the notice and appeal period from three weeks to two weeks for clear and objective applications, and using a hearings officer instead of Development Review Commission (DRC) with no further appeal to council. Council was split: some supported the streamlined process (citing cost and delay for housing), while others insisted on preserving appeal to council (citing democratic oversight). No consensus; item to be revisited with full council present. The tree task force had supported the hearings officer concept but not removal of council appeal (60% majority).
• Concept 4: Consistency Between Development and Non-Development Permitting. Proposed adding a third exemption to allow removal of moderate-risk trees if an arborist determines no alternative to reduce risk or if there is a history of similar tree failure. Council supported the concept. Councilor Wenlin requested input from the insurance industry regarding wildfire risk and defensible space, noting potential future insurance requirements. Staff will consult with insurance experts.
• Council also requested refinement of the definition of "significant tree" to make it more objective and data on mitigation plantings (currently 689 replacement trees required annually vs. 2,930 removals, mostly dead/hazardous/invasive).

Key Outcomes

• Council directed staff to proceed with food insecurity communication efforts and hold financial funds for future allocation. Staff to return with amended grant resolution if needed.
• Council approved the proposed master fee increases (stormwater 3%, street 3.2%, sewer 3.9%, water 2%) effective July 1, 2026. Staff to return December 2, 2025, with a resolution to adopt the fees.
• Staff to prepare analysis of street fund revenue options, including potential franchise fee, for consideration in 2026 for 2027 rates.
• For tree regulations, council provided the following direction: endorse two-track process (clear and objective for housing, discretionary for others); support small lot exemption with further analysis of percentages; support stormwater credit incentive; reject dimensional adjustments and appeals exemptions as incentives; no consensus on appeals process (to be resolved later); support moderate risk tree exemption.
• Staff will present tree code concepts to the Planning Commission on December 8, 2025, then proceed to draft code amendments for council work session in early spring 2026.