Kent Studebaker, Mayor Members of the City Council. Paul Espe, Associate Planner. Ordinance Annexing Property at 5022 Upper Drive (AN )

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TO: FROM: SUBJECT: Kent Studebaker, Mayor Members of the City Council Paul Espe, Associate Planner Ordinance 2776 - Annexing Property at 5022 Upper Drive (AN 17-0011) DATE: March 26, 2018 Date of Meeting: April 3, 2018 ACTION Annexation of 5022 Upper Drive (21E18AA00400). SUGGESTED MOTION Move to adopt findings and enact Ordinance 2776. INTRODUCTION/BACKGROUND The proposed annexation is owner-initiated and will result in the addition of approximately 0.44 acres of residential land to the City, plus the adjacent right of way. This annexation is being processed as an expedited annexation under Metro Code 3.09.045. This Council report describes the reasons for the annexation and provides basic background information. The criteria for approving this annexation and findings in support of approval are included in Attachment B of Exhibit A-1. Owner/Applicant: Erin Residential Enterprises LLC Location/Size: The subject property consists of 0.44 acres (19,166 square feet) and is located on the south side of Upper Drive. Existing Land Use: Tax Lot 400 is occupied by a single-family dwelling and takes access from Upper Drive. Neighborhood: The property is located within the Lake Grove Neighborhood. Purpose of Annexation: The property owners initiated the annexation to connect to City sewer service and to develop the property. DISCUSSION Plan and Zone Designation: The subject property is currently under Clackamas County s jurisdiction and zoned Low Density Residential R-8.5. It is designated WLG R-2.5, West Lake Grove High Density Residential on the City of Lake Oswego Comprehensive Plan map and will be zoned WLG R-2.5 upon annexation.

Page 2 Development Potential: This is a 0.44 acre parcel. Based on the size and shape of the parcel, the lot could possibly be divided into approximately 5 lots. Sensitive Lands: There are no Sensitive Lands designated on the property. Sewer and Water Service: Sanitary sewer service is available from a City of Lake Oswego eight-inch collection line in Upper Drive. Upon connection to the City collection line, the existing septic tank on the property will need to be decommissioned per DEQ standards. Water is available from a Lake Grove Water District line in Upper Drive. The closest fire hydrant is located on the north side of Upper Drive 260 feet away from the subject property. Surface Water Management: Currently, the territory is under the jurisdiction of the Surface Water Management Agency of Clackamas County (SWMACC). Upon annexation, the territory will be withdrawn from SWMACC and will be subject to the City s storm water management regulations. Any new development will be subject to these provisions, which ensure that new development does not have an adverse effect on adjoining properties and does not overburden the City stormwater system. Service Districts: Upon annexation, the property will, by operation of ORS 222.520, be withdrawn from the Lake Grove Fire District #57, the Clackamas County Enhanced Sheriff s Patrol District and the Surface Water Management Agency of Clackamas County (SWMAC), but will remain in the Lake Grove Water District and the Lake Grove Park District. Transportation: Upper Drive, an uncurbed two-way local street and the right-of-way is classified as a County road along the site frontage. Road maintenance, repair and permitting authority will remain with the County until it is appropriate to either enter into an intergovernmental agreement to transfer those functions or to complete a formal road jurisdiction transfer process under ORS 373.270.i. The draft findings provided in Attachment B of Exhibit A-1 conclude that the proposed annexation complies with all applicable State statutes and Metro code requirements. FISCAL IMPACT The estimated assessed value of the residential property is $111,353. The estimated tax revenue after the parcel is annexed is $288. RECOMMENDATION Staff recommends approval of AN 17-0011. EXHIBITS A-1 Ordinance 2776 Attachment A: Map of Proposed Annexation, 03/26/18 Attachment B: Criteria, Findings, Conclusion and Effective Date, 3/14/18

ORDINANCE 2776 EXHIBIT A-1 AN 17-0011 AN ORDINANCE ANNEXING TO THE CITY OF LAKE OSWEGO ONE PARCEL CONSISTING OF 0.44 ACRES AND THE PUBLIC RIGHT-OF-WAY AT 5022 UPPER DRIVE; DECLARING CITY OF LAKE OSWEGO ZONING PURSUANT TO LOC 50.01.004.5(a-c); AND REMOVING THE TERRITORY FROM CERTAIN DISTRICTS (AN 17-0011). WHEREAS, annexation to the City of Lake Oswego of the territory shown in the map in Attachment A and described below, would constitute a contiguous boundary change under ORS 222.111, initiated by petition from the property owners as outlined in ORS 222.111(2); and, WHEREAS, the City has received consent for the proposed annexation from the property owner and not less than 50 percent of the electors residing in the territory as outlined in ORS 222.125; and, WHEREAS, the part of the territory that lies within the Lake Grove Fire District #57 will, by operation of ORS 222.520, be withdrawn from that district immediately upon approval of the annexation; and, WHEREAS, the part of the territory that lies within the Clackamas County Enhanced Sheriff s Patrol District will, by operation of ORS 222.520, be withdrawn from the district upon approval of the annexation; and, WHEREAS, the part of the territory that lies within the Surface Water Management Agency of Clackamas County will by operation of ORS 222.250 be withdrawn from that agency immediately upon approval of the annexation; and, WHEREAS, LOC 50.01.004.5 specifies that, where the Comprehensive Plan Map requires a specific Zoning Map designation to be placed on the territory annexed to the City, such a zoning designation shall automatically be imposed on the territory as of the effective date of the annexation; and, WHEREAS, this annexation is consistent with the Urbanization Chapter of the City of Lake Oswego s acknowledged Comprehensive Plan, Oregon Revised Statutes 222.111(2) and 222.125 for boundary changes, and Metro Code Sections 3.09.040(a)(1-4) and 3.09.045. Now, therefore, the City of Lake Oswego ordains as follows: Section 1. Oswego: The real property described as follows is hereby annexed to the City of Lake A tract of land located in the southeast quarter of Section 7 and the northeast quarter of Section 18, Township 2 South, Range 1 East of the Willamette Meridian, Clackamas County, Oregon, more particularly described as follows: Lot 34, Bryant Acres (Plat No. 383), plat records of Clackamas County. Ordinance 2776, AN 17-0011 (21E18AA00400) EXHIBIT A-1/PAGE 1 OF 3

Excepting therefrom, that portion of said Lot 34 lying within the right of way of Upper Drive (County Road No. 1009). Also excepting therefrom, that portion of said Lot 34 lying within a 6.00 foot wide Public Pathway, created by said Bryant Acres. Together with a portion of the right of way of Upper Drive (County Road NO. 1009), said portion being more particularly described as follows: Beginning at the northwest corner of previously mentioned Lot 34, said point being at the centerline of said Upper Drive; Thence leaving said centerline, South 17 59 East along the westerly line of said Lot 34, 15.00 feet to the southerly right of way of said Upper Drive; Thence South 72 01 West along said right of way, 258.70 feet to the intersection of the southeasterly right of way of Boones Ferry Road (Market Road No. 13) as created by said Bryant Acres; Thence leaving the southerly right of way of said Upper Drive, North 47 24 30 East along the southeasterly right of way of said Boones Ferry Road, 72.04 feet to the intersection of northerly right of way said Upper Drive; Thence leaving the southeasterly right of way of Boones Ferry Road, North 72 01 East along the northerly right of way of Upper Drive, 366.40 feet to the easterly line of Lot 11 of said Bryant Acres; Thence leaving said right of way, South 17 59 East 15.00 feet to the southeast corner of said Lot 11 and the centerline of Upper Drive; Thence South 72 01 West along said centerline, 173.20 feet to the point of beginning. The annexed territory is depicted on Attachment A. Section 2. The annexed area lies within the following districts and shall be retained within these districts upon the effective date of annexation: Lake Grove Park District Lake Grove Water District Section 3. The annexed area lies within the following districts and shall be withdrawn from these districts upon the effective date of annexation: Lake Grove Fire District #57 Clackamas County Enhanced Sheriff s Patrol District Surface Water Management Agency of Clackamas County Section 4. In accordance with LOC 50.01.004.5, the City zoning designation of WLG R-2.5 shall be applied to the subject property on the effective date of annexation, as shown on attachment A. Section 5. The City Council hereby adopts the findings of fact and conclusions set forth in Attachment B in support of this annexation ordinance. Ordinance 2776, AN 17-0011 (21E18AA00400) EXHIBIT A-1/PAGE 2 OF 3

Section 6. Effective Dates: a. Effective Date of Decision to Annex. Pursuant to Metro Code 3.09.050(f), the effective date of this annexation decision shall be immediately upon adoption, unless a governmental entity that qualifies as a necessary party under Metro Code 3.09.020(j) has contested this annexation, in which event this annexation decision shall be effective on the 10 th day following the mailing of this ordinance by the City Recorder to Metro and to all necessary parties who appeared in this proceeding. b. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C, this ordinance shall be effective on the 30 th day after its enactment. c. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of either: 1. the 30 th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State. Provided, however, that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any city, district or other municipal corporation involved in the area to be annexed, then the effective date of the annexation shall be delayed until, and the annexation shall become effective on, the day after the election. Section 7. Mailing Copies of this Ordinance; Metro Notice Within 30 days following the date of adoption: a. The City Recorder shall mail a copy of this ordinance to all persons and governmental entities that appeared at the public hearing and requested a copy of the ordinance following adoption. b. The City Recorder shall mail a copy of this ordinance together with the applicable mapping and notice fee charged by Metro pursuant to Metro Code 3.09.110, to the Metro Data Resource Center, 600 NE Grand Ave., Portland, OR 97232. Read by title only and enacted at the regular meeting of the City Council of the City of Lake Oswego held on day of, 2018. AYES: NOES: ABSTAIN: EXCUSED: Ordinance 2776, AN 17-0011 (21E18AA00400) EXHIBIT A-1/PAGE 3 OF 3

Kent Studebaker, Mayor Dated ATTEST: Anne-Marie Simpson, City Recorder APPROVED AS TO FORM: David Powell, City Attorney Ordinance 2776, AN 17-0011 (21E18AA00400) EXHIBIT A-1/PAGE 4 OF 3

5211 5245 5287 5289 5276 5284 5245 5241 5237 Washington R-7.5 Ct 175 5173 5115 5110 16745 5126 16759 5144 16771 5180 5190 5196 16865 16858 5054 5100 16719 16731 5022 WLG RMU Annexation to the City of Lake Oswego AN17-0011/Ordinance 2776 WLG RMU Boones Ferry Rd West Sunset WLG R-2.5 Upper Dr 16766 TL 0400 Dr 4900 4950 5006 5014 16679 16699 WLG OC 16726 5003 16722 4867 4905 16710 4925 Boones Ferry Rd SW Upper Dr R-7.5 WLG RMU 5228 5 5214 5178 5140 Lower Dr 5134 5136 5050 16989 Tualatin St Attachment A 17001 Tualatin St Lower Dr 17012 TRACT A 16902 Lower Meadows Dr 4912 16924 Map and Lot # 21E18AA TL 0400 City of Lake Oswego: COMPREHENSIVE PLAN = WLG R-2.5, Residential ZONING = WLG R-2.5, Residential Clackamas County: ³ ZONING = R-8.5 Residential Lake Oswego Subject City Limits Property 0 100 200 300 Feet B 16946 16968 4910 16990 TRACT C 4908 4906 17 5 1712 3/15/2018

APPLICABLE CRITERIA: ATTACHMENT B Criteria, Findings, Conclusion, and Effective Date A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2) - Annexation of Contiguous Territory, Authority and Procedure for Annexation, Generally. 2. ORS 222.125 - Annexation by consent of more than half of the owners of land in the territory to be annexed, who also own more than half of the land in the territory, and of land representing more than half of the assessed value of the territory. B. Metro Code. 1. 3.09.040(a)(1-4) Minimum Requirements for Petitions. 2. 3.09.045 (A-E) Expedited Decisions. C. Comprehensive Plan - Urbanization Chapter FINDINGS: 1. Policy A-3: The Urban Services Boundary (as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services. 2. Policy C-3: Ensure that annexation of new territory or expansion of Lake Oswego s Urban Services Boundary does not detract from the City s ability to provide services to existing City Residents. 3. Policy C-4: Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve the property or will be made available in a timely manner by the City or a developer commensurate with the scale of the proposed development. A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2) Annexation of Contiguous Territory, Authority and Procedure for Annexation, Generally. ORS 222.111(2) provides that a proposal for annexation of territory to a City may be initiated by the legislative body of the City, on its own motion, or by a petition to the legislative body of the City by owners of real property in the territory to be annexed. The property owners have petitioned the City for this annexation. The proposed annexation complies with this statute. 2. ORS 222.125 - Annexation by consent of all owners of land and the majority of electors. ORS 222.125 states that an election need not be held on the question of annexation within the area proposed to be annexed if all of the owners of land in the territory and not less than 50 percent of the electors, if any, residing in the territory consent in writing to the annexation. The property owners have signed the annexation application and petition. There are no electors residing on the property. Clackamas County, the owner of the adjacent right-of-way to be annexed, has consented in writing through Section 7 Ordinance 2776 (AN 17-0011) ATTACHMENT B/Page 1

of the 1997 Lake Oswego-Clackamas County Urban Growth Management Agreement (addressed below). The proposed annexation complies with this statute. B. Metro Code 1. 3.09.040 - Minimum Requirements for Petitions. (A) A petition for a boundary change must contain the following information: 1) The jurisdiction of the reviewing entity to act on the petition; 2) A map and a legal description of the affected territory in the form prescribed by the reviewing entity; 3) For minor boundary changes, the names and mailing addresses of all persons owning property and all electors within the affected territory as shown in the records of the tax assessor and county clerk; and, 4) For boundary changes under ORS 198.855 (3), 198.857, 222.125 or 222.170, statements of consent to the annexation signed by the requisite number of owners or electors. The above information was submitted as required by Metro Code. The property owners have signed the application and petition. A map and legal description in the form required by the City have been included in the application materials and are on file. The owners have consented to the annexation on the annexation petition, meeting the consent requirements of ORS 222.125. The annexation petition complies with the Metro code requirements. 2. 3.09.045 Expedited Decisions A. The governing body of a city or Metro may use the process set forth in this section for minor boundary changes for which the petition is accompanied by the written consents of one hundred percent of property owners and at least fifty percent of the electors, if any, within the affected territory. No public hearing is required. B. The expedited process must provide for a minimum of 20 days notice prior to the date set for decision to all necessary parties and other persons entitled to notice by the laws of the city or Metro. The notice shall state that the petition is subject to the expedited process unless a necessary party gives written notice of its objection to the boundary change. C. At least seven days prior to the date of decision the city or Metro shall make available to the public a report that includes the following information: 1. The extent to which urban services are available to serve the affected territory, including any extra- territorial extensions of service; 2. Whether the proposed boundary change will result in the withdrawal of the affected territory from the legal boundary of any necessary party; and 3. The proposed effective date of the boundary change. Metro Code 3.09.045 A. states that an expedited review of an annexation, where no public hearing is required, can be considered by a governing body within the area proposed to be annexed if one hundred percent of the property owners and not less than 50 percent of the electors, if any, residing Ordinance 2776 (AN 17-0011) ATTACHMENT B/Page 2

in the territory consent in writing to the annexation. The property owners have signed the annexation application. There are no electors residing on the property. Metro Code 3.09.045 B. requires a minimum of 20 days notice to all necessary parties prior to the decision date unless a shorter time is agreed upon. The County, Metro and local service districts are necessary parties under the Metro Code 3.09.020 J., and have been notified. Metro Code 3.09.045 C. requires that the report discussing availability of urban services, withdrawal of the affected territory and the proposed effective date of the boundary change be made available at least seven days prior to the date of decision. The annexation report has been prepared and made available within seven days of the public hearing. The proposed annexation complies with the Metro Code. D. To approve a boundary change through the expedited process the City shall: 1. Find that the change is consistent with expressly applicable provisions in: a. Any applicable urban service agreement adopted pursuant to ORS 195.065 The City has entered into - ORS 195.065 agreements with: 1) Lake Oswego School District; and, 2) Lake Grove Fire District. 3) Clackamas County (for roadways). The intergovernmental agreement with the Rivergrove Water District is not discussed in this section because it was entered into before the adoption of ORS 195.065, and consequently does not include all of the provisions necessary to be considered an urban service agreement under that statute. Lake Oswego School District: The City and the Lake Oswego School District entered into an ORS 195.065 urban service agreement for park services in July, 2003. The School District operates the Lake Grove Swim Park located at 3800 Lakeview Boulevard. The agreement states that the annexation of property by the City within the Lake Grove Park District (which funds the swim park) shall not cause the withdrawal of the property from the district. Lake Grove Fire District #57: The City and District entered into an ORS 195.065 urban service agreement for fire protection in July, 2003. The agreement states that upon annexation of property within the district by the City, the annexed property shall be withdrawn from the District and the City shall provide fire protection services. b. Any applicable annexation plan adopted pursuant to ORS 195.205. There are no applicable annexation plans adopted pursuant to ORS 195.205 relating to the affected territory. c. Any applicable cooperative planning agreement adopted pursuant to ORS 195.020(2) between the affected entity and a necessary party. There are no ORS 195.020(2) cooperative agreements (which relate to special districts) between the city and a necessary party. Ordinance 2776 (AN 17-0011) ATTACHMENT B/Page 3

d. Any applicable public facility plan adopted pursuant to a state wide planning goal on public facilities and services. Sanitary sewer service is available from a City of Lake Oswego eight-inch collection line located in Upper Drive. The collection line in Upper Drive has been constructed in accordance with the City Wastewater Master Plan. This property will be allowed to connect to the existing public main located in Upper Drive. e. Any applicable comprehensive plan policies Comprehensive Plan Map: The subject property is currently designated R-8.5, Low Density Residential on Clackamas County s Comprehensive Plan and Zoning Maps. This property is designated as WLG R-2.5 on the City s Comprehensive Plan Map. Upon annexation, a City zoning designation of WLG R-2.5 will be applied to this parcel. The City and County have coordinated their comprehensive plans within the Dual Interest Area outlined in the City/County Urban Growth Management Agreement (dated February 4, 1992 and updated November 18, 1997), hence the City/County designations have been determined to be compatible. Therefore, this annexation is consistent with the City s Comprehensive Plan Map. Comprehensive Plan Policies: The Lake Oswego Comprehensive Plan contains the following relevant language in the Urbanization chapter, Policy A-3: The Urban Services Boundary (as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services. The proposed annexation and the withdrawal of the property from the identified districts are consistent with this policy. Policy C-3 states: Ensure that annexation of new territory or expansion of Lake Oswego s Urban Services Boundary does not detract from the City s ability to provide services to existing City residents. The approval of this annexation will result in the addition of 0.44 acres to be served by the City. As stated in Section 2(b)(1), the addition of this territory will not detract from the City s ability to provide police and fire protection to existing City Residents. Annexation of this property will not affect the City s ability to provide parks and recreation services. Public facilities, such as sewer and water are also found to be adequate to serve this site. Comprehensive Plan Policy C-4 states: Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve the property or will be made available in a timely manner by the City or a developer commensurate with the scale of the proposed development. Availability of urban services serving this property is discussed below: Water: Water is available from a Lake Grove Water District line in Upper Drive. The property is within the district s service boundary and is connected to this water line. The property will continue as an LGWD customer after annexation. Water service to the future development is subject to the review of the Lake Grove Water District. The closest fire hydrant is located on the north side of Upper Drive, 260 feet away from the subject property. Ordinance 2776 (AN 17-0011) ATTACHMENT B/Page 4

The City and the district agreed to construct an interconnection between the two water systems and that the City will furnish and sell surplus water to the District under certain conditions and set rates for district purchase of City water. The City Council also adopted a resolution in 1994 (Resolution 94-22) indicating the city would not withdraw parcels from the district upon annexation. The territory will not be withdrawn from the district upon annexation. Sewer: Sanitary sewer service is available from a City of Lake Oswego eight-inch collection line in Upper Drive. Upon connection to the City collection line, the existing septic tank on the property will need to be decommissioned per DEQ standards. Surface Water Management: Upon annexation, the territory will be withdrawn from Surface Water Management Agency of Clackamas County (SWMACC) and will be subject to the City s storm water management regulations. Any new development will be subject to these provisions, which ensure that new development does not have an adverse effect on adjoining properties and does not overburden the City storm water system. Fire Protection: Lake Grove Fire District #57 provides fire protection services to the subject property by agreement with the City of Lake Oswego. Upon annexation, the property will be withdrawn from this fire district and served directly by the City. The Jean Road Fire Station, located northeast of the site, would be able to respond to emergencies under the eight minute goal established in the Comprehensive Plan. Police: Upon annexation, the subject property will be withdrawn from the Clackamas County Enhanced Sheriff s Patrol District and served by the City of Lake Oswego. The Lake Oswego Police Department reviewed the proposal and indicated that it does not have any concerns with serving this property upon annexation. Parks and Open Space: The City has 537 acres of park and open space lands, or 14.6 acres per 1,000 population. The parks nearest to this property are Waluga Park East, Waluga Park West and Lamont Springs Natural Area. Waluga Park East and West are located north of the subject property. These two parks consist of 53 acres of active and natural passive areas. West Waluga Park includes two lighted baseball fields, a playground, picnic shelters, lights and restrooms. Lamont Springs, located southeast of the site is a natural park with no amenities for organized recreational activities. The City s park system will not be overburdened by any additional population annexed to the City with this application. Lake Grove Park District: The Lake Grove Swim Park, managed by the Lake Oswego School District, and funded by the Lake Grove Park District, is located at 3800 Lakeview Boulevard. The swim park is approximately 1.3 acres in size with restroom, play and swim facilities. This property will remain within the Lake Grove Park District following annexation. Transportation - Streets and Mass Transit: Upper Drive, an uncurbed two-way local street and the right-of-way is classified as a County road along the site frontage. Road maintenance, repair and permitting authority will remain with the County until it is appropriate to either enter into an intergovernmental agreement to transfer those functions or to complete a formal road jurisdiction transfer process under ORS 373.270.i. Ordinance 2776 (AN 17-0011) ATTACHMENT B/Page 5

Clackamas County has consented to the annexation of this adjacent roadway through Section 7 of the Urban Growth Management Agreement for the City of Lake Oswego and Clackamas County (Adopted December 18, 1997), which states: A. That the City may undertake annexations in a manner provided by law within the Dual Interest Area. City annexation proposals shall include the adjacent road right of way to properties proposed for annexation. The County shall not oppose such annexations. ; and, B. Upon annexation, the City shall assume jurisdiction of the County roads and local access roads pursuant to a separate road transfer agreement between the City and the County. Clackamas County has been notified of this annexation and has not expressed concerns regarding the annexation of this roadway. The closest bus stop is located at the intersection of Upper Drive and Boones Ferry Road. The area is served by Tri-Met bus Line 37, which currently operates along Boones Ferry Road to the north, and Line 36, which operates along Lakeview Blvd and Jean Way to the southwest. Line 37 provides service between downtown Lake Oswego and Tualatin, and Line 36 provides service between downtown Portland and Tualatin via downtown Lake Oswego and South Shore Blvd. Community Development Code Section 50.06.008.3 requires that all development be provided with the following utility services: sanitary sewer, water, sidewalks, pedestrian and bicycle paths, traffic control signs and devices, street lights, streets, and TV cable. These utilities are now in place or can be put in place to serve this property. In the event that future development occurs, an applicant for development is obligated to construct all necessary public facilities to serve their development. As noted above, police and fire services are available upon annexation. The amount of protection provided will be similar to protection provided to other City residents because the property proposed to be annexed is not isolated from other areas of the City. Urban Growth Management Agreement: General Urbanization Policy 4.A.4 of the Clackamas County Comprehensive Plan calls for the establishment of Urban Growth Management Areas and Urban Growth Management Agreements to clarify planning responsibilities between the County and cities for areas of mutual interest. Policy 4.A.5 directs the County to establish agreements with cities and service districts to clarify service and infrastructure responsibilities for areas of mutual interest. Similarly, the Lake Oswego Comprehensive Plan, Urbanization Chapter, Policy D-3, calls for entering into and maintaining an Urban Growth Management Agreement (UGMA) with Clackamas County for lands within the Urban Services Boundary. In furtherance of these policies, the City and County have entered into an Urban Growth Management Agreement that stipulates a mutual interest in coordinated land use planning, compatible comprehensive plans and provision of urban services and facilities. This agreement ensures coordination and consistency between the City and County comprehensive plans and outlines responsibilities in providing services and managing growth within the Dual Interest Area. Subsections 6 and 7, provided below, are applicable to annexations. Ordinance 2776 (AN 17-0011) ATTACHMENT B/Page 6

6C. City and County Notice and Coordination: The City shall provide notification to the County, and an opportunity to participate, review and comment, at least 35 days prior to the first public hearing on all proposed public facilities plans, legislative changes to the City Comprehensive Plan, or quasijudicial land use actions adjacent to, or in close proximity to unincorporated areas. The City shall provide notice to the County of private or City initiated annexation requests within five days of the filing of an application with the Portland Metropolitan Boundary Commission. The Urban Growth Management Agreement specifies that the City notify the County of an annexation request within five days of when it is submitted to the Boundary Commission. There is no longer a Boundary Commission for the Portland Metropolitan area. Staff relies on the notice requirements of Metro Code 3.09.045b, which requires notice 20 days prior to the annexation decision for all necessary parties (other governmental entities). The notice shall state that the petition is subject to the expedited process unless a necessary party gives written notice of its objection to the boundary change. The County is a necessary party under the Metro Code definition and has been notified. 7. City Annexations A. The City may undertake annexations in the manner provided for by law within the Dual Interest Area. The City annexation proposals shall include adjacent road right-of-way to property proposed for annexation. The County shall not oppose such annexations. B. Upon annexation, the City shall assume jurisdiction of the County roads and local access roads pursuant to a separate road transfer agreement between the City and county. The City is undertaking this annexation in the manner provided for in the applicable ORS and Metro Code for the territories that lie within the Dual Interest Area. This annexation is consistent with the City and County comprehensive plans which have been coordinated in the Dual Interest Area within the regional Urban Growth Boundary (UGB). A portion of the right-of-way adjacent to this property is in unincorporated Clackamas County and will be annexed with this property. f. Any applicable concept plan Consistency of the proposed boundary change with urban planning agreements is mentioned under D(1)(c) above. 2. Consider whether the boundary change would a. Promote the timely orderly and economic provision of public facilities and services b. Affect the quality and quantity of urban services c. Eliminate or avoid unnecessary duplication of facilities or services Due to the proximity of the property to existing City services, this annexation will promote the timely, orderly and economical extension of public facilities and services. The subject Ordinance 2776 (AN 17-0011) ATTACHMENT B/Page 7

property can readily be served with urban services and facilities. If and when additional development occurs in the area, provision of public facilities and services will occur consistent with the City s adopted public facility master plans, ensuring that it does not adversely affect the quality or quantity of urban services and avoiding unnecessary duplication of facilities or services. Therefore, this boundary change is consistent with criteria 2.a through 2.c. (E) A city may not annex territory that lies outside the UGB except it may annex a lot or parcel that lies partially within and partially outside the UGB. The property to be annexed is located entirely within the City s Urban Growth Boundary (UGB). CONCLUSION: Based on the criteria and findings set forth above, the City Council concludes that AN 17-0011 complies with all applicable criteria and the annexation should be approved. EFFECTIVE DATE: A. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C., the ordinance shall be effective on the 30 th day after its enactment. B. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of: 1. the 30 th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State; provided however that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any City, district or other municipal corporation involved in the area to be annexed, then the effective date of the annexation shall be delayed until, and the annexation shall become effective on, the day after the election. Ordinance 2776 (AN 17-0011) ATTACHMENT B/Page 8