OUR MISSION IS

“Providing quality public services for a better Albany community.”

OUR VISION IS

“A vital and diversified community that promotes a high quality of life,

great neighborhoods, balanced economic growth, and quality public

services.”

Rules of Conduct for Public Meetings  1. No person shall be disorderly, abusive, or disruptive of

the orderly conduct of the meeting.

2. Persons  shall  not  testify  without  first  receiving recognition  from  the presiding officer and stating  their full name and residence address. 

3. No  person  shall  present  irrelevant,  immaterial,  or repetitious testimony or evidence. 

4. There  shall  be  no  audience  demonstrations  such  as applause,  cheering,  display  of  signs,  or  other  conduct disruptive of the meeting. 

NOTICE OF PUBLIC MEETING CITY OF ALBANY

CITY COUNCIL Council Chambers

333 Broadalbin Street SW Wednesday, July 10, 2013

7:15 p.m.

AGENDA

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE TO THE FLAG

3. ROLL CALL

4. SCHEDULED BUSINESS

a. Business from the Public

b. Adoption of Consent Calendar

1) Approval of Minutes a) May 22, 2013, City Council Regular Session. [Pages 1-10] b) June 10, 2013, City Council Work Session. [Pages 11-12]

Action: _______________________________________________________________________________________

c. Award of Contract 1) ST-13-03, North Albany Road Reconstruction. [Pages 13-14]

Action: _____________________________________________________________________________________ d. Approval of Agreements

1) Executing an intergovernmental agreement with Benton County for tax-only payment of Hewlett-Packard Company tax refund. [Pages 15-24]

Action: _____________________________________________________________________________________ 2) Executing an intergovernmental agreement with Oregon Department of Transportation to exchange federal

Surface Transportation Program funds for state funds. [Pages 25-32] Action: _____________________________________________________________________________________

e. Appointments

1) Library Board. [Pages 33-35] Action:_______________________________________________________________________________________ 2) Linn County Local Public Safety Coordinating Council. [Page 33]

Action:_______________________________________________________________________________________

5. BUSINESS FROM THE COUNCIL

6. NEXT MEETING DATE: Work Session July 22, 2013 (Boys & Girls Club, 1215 Hill Street SE) Regular Session July 24, 2013

7. ADJOURNMENT

City of Albany Web site: www.cityofalbany.net

The location of the meeting/hearing is accessible to the disabled. If you have a disability that requires accommodation, advanced notice is requested by notifying the City Manager’s Office at 541-917-7508, 541-704-2307, or 541-917-7519.

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APPROVED: DRAFT

CITY OF ALBANYCITY COUNCIL

Council ChambersWednesday, May 22,2013

7:15 p.m.

MINUTES

CALL TO ORDER

Mayor Sharon Konopa called the meeting to order at 7:15 p.m.

PLEDGE OF ALLEGIANCE TO THE FLAG

Konopa led the pledge allegiance to the flag.

ROLLCALL

Councilors present:

Councilors absent:

Councilors Rich Kellum, Bill Coburn, Bessie Johnson, Ray Kopczynski, Dick Olsen, andFloyd Collins.

None.

SPECIAL PRESENTATION

Preservation awards.

Lead Long Range Planner Anne Catlin explained that this year's focus of the Preservation program isstewardship that improves Albany's livability and economic vitality. Catlin showed a PowerPoint presentation(see agenda file).

The 2013 awards were presented by Mayor Konopa to:

Corey and Nina Barton, for exterior improvements made to 135-139 First Avenue NE. Catlin said theychanged exterior fayade and gave the building a fresh new look. Even though the building is not in thehistoric district, their work is still appreciated. .Shelley and Forrest Reid, for new paint colors at 135 Fifth Avenue SW. Catlin said Roger Reid is alsoin the audience. The Reid's own several historic properties and do a good job maintaining all of them.Greater Albany Public Schools (GAPS) for seismic improvements to Central Elementary School. Catlin'explained they received a $1.5 million grant for the upgrades which required that they keep the interiorintact. They are pleased with the renovations. They did go through historic review for the escape stairs.The school was built in 1915. Catlin recognized Principal Chris Equinoa, School Board Member MicahSmith, and Foreman and grant applicant Gary Dahlquist. Catlin said this project received statewideattention.

• Leah and Derick Olson for exterior rehabilitation at 317 Fourth Avenue SE. They replaced the fullsiding.

• Richard and Kathy May, Cappie's, 211 First Avenue, for renovations to five apartments on the upstairslevels.

• Anthony Dostie was also recognized for his ongoing stewardship of Albany's historic buildings. Catlinsaid he did the window restorations for Cappie's and is very conscientious when making repairs tohistoric buildings.

Catlin said May is National Preservation Month and there have been many events. One of the events was"Hidden History Scavenger Hunt". The correct entries were included in a drawing. Catlin said Mike and BethPeutz won the drawing. Their prize is tickets to the Pix Theater.

Catlin recognized the Landmarks Advisory Commission members in the audience: Oscar Hult, Dave Pinyerd,and Camron Settlemier. Jessica Pankratz, Larry Preston, Kate Foster, and Treat Jacobs were not in attendance.

Konopa thanked Catlin for all of her hard work. She said, there are many wonderful advocates for historicpreservation in the Albany community.

SCHEDULED BUSINESS

Communications

Albany Visitors' Association update.

Jimmie Lucht, Executive Director of Albany Visitor's Association (AVA), gave a PowerPoint presentation(see agenda file).

Lucht described the rebranding of the AVA and how they selected the new logo, "See Albany, Discover Oregon".

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Albany City Council Regular SessionMay 22,2013

Lucht described the passport program. This is similar to past events where participants used a map, printed on ahandkerchief, to travel around the community and get prizes. It is a popular family activity. Lucht said they willbe doing a similar program with passports this time.

Lucht explained that geo-caching is like a grown-up version of treasure hunting. Coins are popular collectablesfor geo-cachers. The first 300 coins that the AVA had minted feature the "Kathy House".

The Santiam rest stop kiosk serves coffee to travelers. It is hosted by 25 volunteers and travelers appreciate thecoffee donated by Allan Brothers.

Lucht said the AVA bought three brochure racks with information about local events. The racks are in localhotels as a test run.

AVA staff distributed three documents: Discover Albany 2012-2013 magazine by AVA (see agenda file); theOregon RV Resource Guide by Oregon RV Alliance (see agenda file); and the Seems Like Old Times publicationby AVA (see agenda file).

Lucht described conversations he had with Oregon Tour and Travel Alliance (OTTA) President Melody Johnsonabout tour bus packages. Lucht said the AVA has contracted with Johnson to put together tour bus packages with8-10 itineraries. Tour buses already stop in Albany but only for overnight stays; Lucht's goal is to keep visitors inthe Albany community for more than just overnight.

Lucht described future events: The Family Motor Coach Association's Northwest Railey, August 8-11; and theOregon Heritage Conference in May 2014.

The AVA's new location is 110 Third Avenue.

Konopa said that the AVA does a lot for tourism. When she is at events in the community, the AVA staff isusually there too. She appreciates what the AVA does for Albany.

2-1-1 update.

Greg Roe, Executive Director of United Way, said the agenda packet contains Linn County statistics. Hedistributed a one-page brochure about 2-1-1 (see agenda file) and a 2-1-1 Summary for calendar year 2012 (seeagenda file).

Roe said 2-1-1 is a call line that was installed by Linn, Benton, and Lincoln Counties about two years ago. Bycalling 2-1-1, a person can get a complete listing of every nonprofit and state social service program such asmortgage assistance, food boxes, clothing, etc. Roe said that Dar Merril, coordinator of the Linn CountyCommission on Children and Families, travels throughout the counties to help collect all the data.

Roe pointed out that for Albany, electricity and water assistance continue to be the number one needs requestedover the last year. Another common request is rental and mortgage assistance.

Roe said that about a year and a half ago, the United Way, the Boys & Girls Club of Albany, and the SamaritanHealth Foundation created a dental clinic at the Boys & Girls Club.. Dental care used to be in the top five on the2-1-1- request list, but now it has dropped down to seventh place. The clinic is serving 1,400 adults and isscreening 900 kids; it is clearly making an impact in the community.

Roe said that Management AssistantlPublic Information Officer Marilyn Smith has been president of the UnitedWay Board twice and the City of Albany in general has been very sUPPOliive. Roe said most calls are comingfrom the unemployed and underemployed. The key to 2-1-1 is that folks can find out what they are eligible for inone place. Surveys indicate that 100 percent of folks who called 2-1-1 were satisfied the service they receive.

Councilor Ray Kopczynksi said that the reports show that 44 percent were unable to get the help they needed, yet100 percent were happy with the service. Roe explained that they set aside a certain amount of money for utilityassistance and once it runs out they have to wait until next year. The Community Services Consortium (CSC)and Fish of Albany get requests for energy assistance so United Way makes sure they get this report so they canuse it in their grant writing.' Discussion followed.

Konopa said the City also offers assistance on utility bills for seniors and the disabled. Roe explained that theneed for utility assistance is so great that the nonprofits often limit a person to getting help just once each year.Roe said they help not just low income but also seniors and the underemployed.

Roe said the total number of calls has increased over the last year. They work with CSC, Fish of Albany,Salvation Army, and Department of Human Services. Almost 20 percent of callers aren't low income; they maybe looking for childcare resources, for example. Albany Police Department (APD), Albany Fire Department(AFD), and Greater Albany Public Schools (GAPS) have been very good about handing out the 2-1-1 brochures.Konopa talked about the increased Community Development Block Grant (CDBG) assistance that Albany willreceive now that the population exceeds 50,000.

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Albany City Council Regular SessionMay 22, 2013

Konopa asked, do the funds you receive fully fund your program? Roe said they have one employee that worksfull time, entering all the new programs for Linn, Lincoln, and Benton Counties. Julie Manning with theSamaritan Health Foundation is a big supporter, as well as Central Willamette Credit Union.

Public Hearing

Incorporation of South Albany Area Plan projects into Transportation System Development Charges feemethodology.

a) Adopting a methodology for the development of a System Development Charge for the TransportationSystem and repealing Resolution No. 5972.

b) Revising the project list for the Transportation System Development Charges, reaffirming the base fee andthe appeal fee and repealing Resolution No. 6129.

Public Works Director Mark Shepard said the Council discussed this item at the April 22, 2013, City CouncilWork Session.

StaffReport.

Transportation Systems Analyst Ron Irish gave a brief history. In 2010, the City adopted the updatedTransportation System Plan (TSP). In part the TSP looked to 2030 for how the transportation system wouldoperate and identified needed projects to accommodate growth. The projects total $242 million; a portion of thetotal is growth related and so is System Development Charge (SDC) eligible.

Irish said the South Albany Area Plan (SAAP) was adopted earlier this year; part of what came out of the SAAPwas a list of transportation projects needed for that specific area. These are above and beyond what was adoptedin the 20 I0 TSP; so at the time the Council adopted the SAAP they also adopted a list of added street projects tothe TSP. Irish said the action being taken tonight is to take the projects in the SAAP and incorporate them intothe SDC methodology and fee structure. This proposal is the same that the Council and staff discussed at theWork Session.

Irish said there are a few changes since the SAAP was adopted; they eliminated one street, added an intersection,and changed structural sections of some intersections. In the proposal to amend the SDC fee, staff made someassumptions in how to incorporate new projects into the SDCs. One assumption was that the rate that would becharged for development would not change; shOit-term, high priority projects would receive priority for funding;projects by developers that were short to mid-term would be funded for at least the oversize component; andprojects by developers in the long-range would have low funding priority. Irish said if they keep the fee flat theywould have a larger number of projects competing for the same money.

To the oversizing, Irish said the roundabouts and traffic signals would be funded at 50 percent. For collectorroads, 15 percent would be oversized and for arterials, 25 percent would be oversized.

Irish said there are two pieces of information that were not in the agenda packet. The first is a copy of theresolution on the dais (see agenda file). The content is the same as what is in the agenda packet, but this includesred text to show the changes made since the Work Session. The Albany Corvallis Path Project is the subject ofan enhancement grant that or Benton County received from ODOT. The TSP estimated it to be $405,000 and'theCounty estimated it to be $1.5 million. The change is the total cost amount estimate; the amount being fundedhas not changed.

Irish said there is a list of individuals and groups interested in SDC fees that the City must maintain. Staffcontacted all those on the list, and there were no objections.

Irish said the second new item is a letter from the representatives of the owner of the Henshaw farm propertydated May 15, 2013 (see agenda file). The letter summarizes four of the SAAP projects and points out that thecost of development is high and they ask for 100 percent funding. Staff is comfortable with funding the oversizeportion only. Irish described the funding and the rationale behind each component.

Open: The public hearings were opened at 8:01 p.m.

There was no comment on either item.

There was no one signed up on the two public hearing sign-up sheets (see agenda file).

Closed: The public hearings were closed at 8:02 p.m.

Kopczynski asked if staff had additional feedback from the representatives of the Henshaw property about theirrequest for different funding. Irish explained why staff does not support their request for 100 percent funding.The SDC methodology provides a lot of flexibility for developers to shift money back and forth. In this scenariostaff thinks the current proposal is appropriate. Irish said if the Council encounters a request where there is an

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Albany City Council Regular SessionMay 22, 2013

incentive to provide more funding, then they could consider funding it at 100 percent by taking money fromother projects.

MOTION: Councilor Floyd Collins moved to adopt the resolution which adopts a methodology for thedevelopment of a System Development Charge for the Transportation System and repealing Resolution No. 5972and Councilor Rich Kellum seconded it. The motion passed 6-0 and was designated Resolution No. 6220.

MOTION: Collins moved to adopt the resolution revising the project list for the Transportation SystemDevelopment Charges, reaffIrming the base fee and the appeal fee and repealing Resolution No. 6129, andKopczynski seconded it. The motion passed 6-0 and was designated Resolution No. 6221.

Collins commented on the process. He said this is an example of integration of long-range planning of the SouthAlbany area and the inclusion of the infrastructure costs to the point that the funding is relative to the SDCs. Alot of communities don't make that connection. This is up front planning that integrates land use and fInancialplanning. He commended staff for making it happen.

Kellum agreed with Collins. He said he thinks that staff gave exactly the right response since this comes from afInite pot of money.

Business from the Public

Konopa said there is information on the dais about House Bill (HB) 3260 from the state of Oregon website (seeagenda fIle) and a summary of the measure's activity from OregonLive (see agenda file). City Manager Wes Haresaid it is the engrossed version of the HE which includes all the amendments to-date. The resolution is to supportOregon HE 3260 (see agenda fIle).

Edith Orner, 2054 54th Avenue SE, represents the Albany Chapter of Healthcarefor All Oregon, which is acoalition of over 60 organizations that are concerned about the current state of delivery and cost of health care inthe state of Oregon. The resolution applies to HE 3260 which asks for a feasibility study to check into variouspossible delivery and related cost systems for providing health care that may be less costly and more effIcient.They are asking the Council to pass this resolution because everyone is being impacted by the system as itcurrently exists: private citizens, employers, and business. She said, some important decisions are going to bemade about healthcare and it is important that studies be undertaken fIrst so that there is information to make adecision. Other states have done studies which can be reviewed, but it is important to gather information specificto Oregon.

Collins asked what would happen if the HE does not come out of Committee at the state level. Orner said theywill continue their efforts imd hope to build enough support to bring it back at a later date. Collins asked how thestate will be making decisions if they don't do this study. Orner said, that is what we are concerned about; whatinformation will they use to make decisions, or if they might postpone a decision. A study would help them toarrive at some sort ofdecision.

Collins asked what other municipal or county organizations have been approached by this group for support.Orner said the Corvallis City Council has passed a resolution in support, and the Lane County Democrats alsosupport it. There are others as well.

Collins asked if the League of Oregon Cities (LOC) has taken a position. Hare has not seen a position by theLOC, however typically the LOC would not take a position on this item because it is not something that is fundedby cities and cities would not be directly involved in the study.

Kopczynski said the resolution states that the preliminary progress is expected to be in the 2014 Session and thefinal report is expected in the 2015 Session; he wonders how it can be accomplished in that amount oftime unlessit were more focused. He asked if the other programs would stop if this study were to take place. Orner said thisstudy would be in addition to other programs. She described a program put forward by Governor Kitzhaber toconsider different delivery systems for the Oregon Health Plan. The Healthcare for All Oregon group plans tospend two to four years to build a base of support among citizens to convince legislature that something needs tobe done.

Kellum recalled that at the Work Session Orner said she was concerned that there may be a portion that the stateis required to fund. Orner said that there was some concern that when it was sent to the Ways and MeansCommittee that there might be some administration costs which might require tax dollars. Kellum said he doesnot have an issue if private organizations want to put money towards a study. He does 'think this may bepremature since "Obama care" isn't even finalized; it still seems to be evolving. Orner said part of Obama care isthe activation of insurance exchanges and Oregon has opted to participate in that and has received funding. Thework is being done now to organize the exchange and it should be operational in 2014. That is one of the plansthat HE 3260 plans to include in their study. They need to evaluate how well the exchange would function.Kellum said he does not object to the Council supporting this resolution so long as no public money is goingtowards it.

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Albany City Council Regular SessionMay 22,2013

Councilor Dick Olsen agrees with Kellum that more information is better so long as it is not costing the taxpayers.

MOTION: Olsen moved to adopt the resolution supporting Oregon House Bill 3260 and Council Bessie Jolmsonseconded the motion.

Kellum stated that his support is contingent upon no spending oftax dollars.

VOTE: A vote was taken on the motion to adopt the resolution supporting Oregon House Bill 3260 and it passed6-0 and was designated Resolution No. 6222.

Dick Owen, 810 Cox Street, distributed a "Statement of Delinquency" from the Linn County Tax Collector (seeagenda file). Owen said he has lived in his house for 44 years. He spoke about his sewer bill which is based on 8units of water when he believes he uses 2 units. Shepard said that at the May 6, 2013, Work Session the Councildiscussed giving staff discretion in scenarios such as Owen's bill. The Council will be considering a change inpolicy at a June Council meeting.

Adoption of Resolutions

Amending the ICMA Retirement Corporation 457 Governmental Deferred Compensation Plan & Trust to includethe associated Roth amendment.

Finance Director Stewart Taylor said this amends the deferred compensation plan to allow voluntary salarydeferrals by employees into a Roth 457 plan. It looks very much like a Roth IRA. This would allow variety inretirement plans for employees.

Kellum asked ifthe City pays matching funds for this. Taylor said no. Hare said there are deferred compensationprograms that do include a match, but this program does not.

MOTION: Kopczynski moved to adopt the resolution amending the ICMA Retirement Corporation 457Governmental Deferred Compensation Plan & Trust to include the associated Roth amendment and Kellumseconded it. The motion passed 6-0 and was designated Resolution No. 6223.

Appropriating $475,000 from Albany Rural Fire Protection District: approving exemption from the competitivebidding requirements through a contract with HGACBuy and Pierce Manufacturing Inc.; issuing a notice of intentto award contract with Pierce Manufacturing, Inc., and authorizing the City Manager to enter into a contract withPierce Manufacturing. Inc., not to exceed $850,000 to purchase a new ladder truck.

Fire Chief John Bradner said the current budget includes replacing the aerial ladder truck. This is provided for inequipment replacement to replace it every 15 years. They will take the current truck and put it into reserve statuswhich will allow them to provide aerial operations even when one unit is out of service. This will also benefitAFD in future Insurance Services Office (ISO) ratings. Due to depleted funds in equipment replacement theyrealized they would need to rely on Albany Rural Fire Protection District to provide $475,000. This resolutionwould appropriate these funds from Albany Rural to purchase this truck from Pierce Manufacturing.

Kellum asked Bradner to clarifY that this does not involve a loan. Bradner said that is correct.

MOTION: Johnson moved to adopt the resolution to appropriate $475,000 from Albany Rural Fire ProtectionDistrict; approving exemption from the competitive bidding requirements through a contract with HGACBuy andPierce Manufacturing Inc.; issuing a notice of intent to award contract with Pierce Manufacturing, Inc., andauthorizing the City Manager to enter iljto a contri\ct with Pierce Manufacturing, Inc., not to exceed $850,000 topurchase a new ladder truck; and Kopczynski seconded the motion. The motion passed 6-0 and was designatedResolution No. 6224.

Adoption of Consent Calendar

1) Approval ofMinutesa) March 4, 2013, Mayor's Business Ready Task Force.b) April 4, 2013, Capital Improvement Program Joint Work Session.c) April 10, 2013, City Council Regular Session.d) April 22, 2013, City Council Work Session.e) April 24, 2013, City Council Regular Session.

2) Approving annual liquor license renewals.3) Declaring equipment from the decommissioned Wastewater Treatment Plant as surplus property and

authorizing the Public Works Department to dispose of assets.4) Authorizing the City Manager to issue a License to Occupy Public Property to Portland & Western Railroad,

Inc., for purpose of a new track crossing on Main Street between Fifth and Sixth Avenues.5) Authorizing the Public Works Director to notifY the Oregon Department of Transportation of the City's intent

to accept Local Highway Bridge Program funding for the Third Avenue Bridge in the federal fiscal year2016-2018.

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Albany City Council Regular SessionMay 22, 2013

6) Accepting street and utility right-of-way dedications for the purpose of:a) Converting a 15-foot wide tract of land to provide Ashley Drive access to 10S04W36CB02000 and for

future public street construction. RES. NO. 6225b) Converting a 25-foot wide tract ofland to provide Ashley Drive access to 10S04W36CB02000 and for

future public street construction. RES. NO. 6226

Johnson asked that items 2) and 3) be removed for discussion.

Olsen asked that items 4) and 5) be removed for discussion.

MOTION: Councilor Bill Coburn moved to adopt the Consent Calendar with items 2), 3), 4) and 5) pulled fordiscussion. Kopczynski ~econded the motion and it passed 6-0.

To item 2), Johnson asked why the Linger Longer Tavern is requesting two liquor licenses. Staff said it is forinside and outside sales.

To item 3), Johnson asked what the process for a sealed bid would cost and if it is worth the money. Shepardsaid the process involves staff putting together a bid package. They don't sell surplus property often but they doa lot of bid projects. It should not be too involved. He does think that the additional funds they could receive areworth the effort.

Coburn noted that item 3) refelTed to materials described in "Attachment A", but there was no attachment.Shepard passed out a document titled "Surplus WTP Equipment" (see agenda file). It is four pumps and acentrifuge.

Olsen asked if the equipment has been used in the past. Shepard said it was used at the old WastewaterTreatment Plant.

To item 4), Olsen asked, does this allow the railroad to use the City's right-of-way (ROW)? Shepard said yes; itauthorizes them to have license to cross Main Street. The City has been working with them for years on this andas a result they are doing street improvements on Main Street to Fifth Avenue through a Site Improvementproject. Shepard said, we will issue them the license to cross City ROW at Main Street. This is a key piece forthe railroad to finish their Millersburg yard. This does not involve property; this just extends and adds anothertrack.

City Attorney Jim De1apoer pointed out that with the potential litigation settlement with the railroad in the nearfuture, this is an opportunity to change the relationship from adversaria1 to cooperative. For that reason,Delapoer recommends the Council support this action.

To item 5), Olsen asked if there is cOlTosion on the bridge. Shepard said about a year ago the City submitted anapplication for funding for the replacement of the bridge. There are issues with scour around the supportcolumns, but there are also functional issues such as the bridge being too nalTOW and no bike lanes. Shepard saidthat ODOT replied with a letter stating that the bridge was selected but just for the structural components dealingwith the scour. Moving forward with the scour is estimated to cost $3 million, whereas replacement of tile bridgeis $12 million. Shepard said the problem is if they accept the $3 million for the scour fix, the bridge will neverhave a high enough rating with ODOT to qualifY for the functional fixes.

Shepard said City staff negotiated with ODOT to' initiate the scour design, and also commit to do a type-size­location effort during the design phase in which they will consider other ways to fix the bridge at its location andadd a bike facility on or adjacent to it. Then there would be a solid cost estimate to address all of the issues withthe bridge. Tonight staff is asking for pelTllission to tell ODOT to put it in the State Transportation ImprovementProgram (STIP), and then ODOT will write an intergovernmental agreement (IGA) which will take about a year.Eventually staff will bring the IGA back to the Council to consider if they want to commit funds to the project.

Olsen asked if it is safe for pedestrians in the meantime. Shepard said the City is committed to look for someshort telTll solutions to the scour issue in the $10,000 range, though that is something the City would have done

. anyway.

MOTION: Coburn moved to adopt items 2), 3), 4), and 5). The motion was seconded and it passed 6-0.

BUSINESS FROM THE COUNCIL

Konopa asked if the Councilors had questions about the debt limit ordinance that was discussed at the May 20, 2013,Work Session. The debt limit ordinance seeks to amend the City Charter in response to the vote on Measure 22-117.

City Attorney Jim De1apoer said if the Council ultimately decides to put this proposed measure on the ballot and if theychoose to send it to the September 2013 election, then they have until the end of June to finalize the language. He is stillrevising the ordinance and ballot title. There are no proposed changes to the text itself. The final ordinance will be onthe June 12,2013, Council agenda for a first reading. It will call for an election in September because that is the generaldirection he received from the Council at the Work Session. Delapoer said the Council will have the opportunity at that

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Albany City Council Regular SessionMay 22, 2013

meeting to discuss changes before a second reading. If the Council wants it to go to the September election, they wouldneed to have the second reading at or before the second Council meeting in June.

Collins asked, in evaluating the cost of the September versus the November election, would the cost be the same absentany other ballot items? Delapoer said that is correct.

Kellum asked, if they chose the September election but then learned there was another agency's item on the Novemberballot that might help to defray costs, could they move the City's item to the November ballot? Delapoer explained thatif that happened they could repeal the previous ordinance and do a new ordinance to send the question to the Novemberelection. All of this is subject to specific time frames.

Hare said, in the interest of full disclosure, there is a strong possibility that staff will be bringing a proposal to the CityCouncil to refinance sewer debt from the State Revolving Fund (SRF) loan, and to put it on the November ballot as aOeneral Obligation (00) bond issue. Refmancing would create substantial savings. So, there is the potential for twoelections, both of which the City might bear the full ~ost ifthere are no other items on the ballots.

Delapoer said the 00 bond issue has to go to the November election, but the savings would be worth the cost of theelection. The advantage of sending the Charter amendment to the September election is that the Council would avoid theconflict of having any confusion between the two measures. The first measure would be to simply amend the Charter; andthe second measure would be a specific debt authorization. Delapoer said putting the Charter amendment on theSeptember ballot makes it clear that future debt authorizations are approved by simple majority vote; therefore, the 00bond in November would simply be a measure to authorize a new debt. If the Council did not clarifY this in advance,what would happen is the November debt issue would actually have to be framed as a second Charter amendment; andthere would be two Charter amendments on the November ballot - one proposing to amend the Charter generally to clarifythe March 2013 vote on Measure 22-117; and the other, a Charter amendment to say, not withstanding anything in theCharter to the contrary, that the new 00 debt is authorized.

City Clerk Mary Dibble said to get an item on the November ballot the Council would have to finalize the ordinance at orbefore the August 14, 2013, Council meeting. Dibble said, as to what other agencies might be on the ballot, staff has notasked that question, though she is not sure how far in advance Linn or Benton County would know anyway. The Citywould have to make a final decision on the ballot title before the County's deadlines for the election filing forms. TheCounties may be able to anticipate who might be on the ballot, but they will not necessarily know until after the deadline.

Coburn thinks the Charter amendment should be on the September ballot. Collins and Konopa agree.

Delapoer said that the Charter amendment is to specifically address the unintended consequences of 22-117, voted on atthe March 2013, election; so the more time that passes, the more of a disconnect there will be for voters. He said, you runthe risk of confusing the two issues if they are both on the November ballot. Then if the Charter amendment to fixMeasure 22-117 doesn't pass, the City will continue to be in the same limbo it is now. It would be better to get theuncertainty cleared up.

Hare said, the situation with Measure 22-117, which did not pass based on the interpretation of our bond counsel and CityAttorney, leaves us in a position where resolving that question will cost far more than the cost of an additional election.The Council is weighing the investment of $30,000 for an election to seek clarity and increase the likelihood of getting thesituation resolved, versus some very big expenses, potentially, in the future. Hare said, this is what we were trying to getacross to people early on - that the uncertainty of the measure will cost money. It already has, and it will cost even moreif it is not taken care of.

Coburn passed out a document titled "Incidents at 1775 SW Belmont Loop" (see agenda file). Coburn said this documentlists 52 police visits to this particular residence. He went to a Neighborhood Watch meeting concerning this residence. Itis in foreclosure and the power, water, etc., have been turned off. The Police Officer who was speaking to the group saidthey are trying to get the owner to sign a "no trespass order" so that if someone breaks into the house, the police can arrestthem. Coburn said it seems to be a livability issue if all utilities are turned off, so he said he would see what currentAlbany Municipal Code (AMC) there is regarding livability. Coburn said he spoke with Delapoer about this already.

Delapoer said he discussed this with the Building Department and Planning Department and there does not seem to be asimple solution currently in the Code. This doesn't happen very often, so if the Council adopts an ordinance to fix thisscenario it could have unintended consequences. An option is to adopt an ordinance that says it is unlawful to occupy adwelling that does not have essential public services. But, there are situations occasionally where there may be alegitimate reason a property may be without certain services.

Hare described similar past experiences and the City's current property maintenance codes. Staff tries to deal withproperty owners in these cases but it is sometimes unclear who the owner is. Hare recommends that staff and Delapoerconsider ideas other than writing a ne"" ordinance. Discussion followed.

Coburn realizes this won't get resolved tonight but said there will be situations when a house is empty, services are cutoff, and there are squatters inside. He thinks that APD needs an additional tool to deal with these situations.

Delapoer said it is difficult to find an owner in a foreclosure situation. Sometimes it can take more than a year before theycan get someone to step up and claim responsibility, especially following the massive foreclosures in recent years. Hare

7

7

Albany City Council Regular SessionMay 22, 2013

said that in his career as a City Manager there have been times when no one ever claimed ownership of a property.Discussion followed.

Delapoer said when Coburn first approached him, he had reservations because they already have a problem in MunicipalCourt with transients. They can't pay their fines so all theCity can do is put them injail at a cost to the City of $80 a day.On other hand, citizens don't want this to happen in their neighborhoods. In most cases they could [md an owner thatwould agree to sign a "no trespass order" so that APD could keep people out or arrest them. They may be able to craft anordinance to say that if a house is not owner-occupied and lacks certain utilities, it is not legally habitable and anyoneinside is committing trespass; but they could not prosecute it as a trespass. If they could make it an AMC violation, thatwould mean the Building Department would not have to get involved and it may be easier for APD deal with it morequickly. Delapoer said this is something he will need to study with law enforcement and the Building Department.

Kellum suggested they could make it illegal to occupy a home that a person does not have authorization to occupy; andthey could be required to show identification. Delapoer replied that would be difficult to do legally. Discussion followed.

Delapoer said, to be efficient, APD has to quickly determine if the requirements are met or not, and there ~ust beobjective predicates that are clearly health or safety related. It would be good to find a way outside of the propertymaintenance code, which is cumbersome and time consuming, so that APD can take action quickly.

Johnson said she looked up the property online and reported that the taxes are being paid and it is listed under a person'sname.

Kellum spoke about the Budget Committee i11eetings. He said, they went through the budget in 5.5 hours. He votedagainst it, not because he had a problem with the numbers, but because he doesn't think they had enough time to processand soak in the information in order to ask questions, He said that there were five others in the room who thought thesame thing. He thinks the process can be changed.

Konopa said there may never be a best process to meet all the Budget Committee Member's needs. Also this wasKellum's first Budget Committee experience. Konopa said that they used to have many more meetings when there werecontentious issues. The process they use now is much shorter because there are not contentious issues. She also creditedstaff for the layout of the Budget document; in the past it used to be a more difficult document to navigate. Taylorchanged the layout so that the flow is much better. Discussion followed.

Konopa said at the Budget Committee Work Session in January they always set the Budget calendar which sets themeetings. The)' can use that Work Session to schedule as many meetings as they want.

Kopczynksi asked for an update on the Oak Street traffic signal. Shepard said they are waiting on striping; the businessowner wants the striping of his parking lot to be done on a weekend so it does not impact business. Shepard said theyhave a painting contractor in place who was ready last weekend but was delayed due to the rain. It will be a weekend byweekend assessment. ODOT knows that as soon as the striping is done, they need to move quickly with their finalinspection and turning the traffic signal on. ODOT says they are satisfied with the work and there are no other punch listitems. .

Konopa said th~re was a great turnout for Big Pick Up. She commended stafffor organizing the event.

Konopa said there was a great tum out for the Honor Flight movie at the Pix Theater.

Konopa attended a luncheon at the Evergreen Samaritan Hospice House which was completed last year. They havealready exceeded expectations by filling 'one wing. Samaritan Health Foundation Is working to raise funds to completethe other half of the facility. Most of their clientele are Albany residents.

CITY MANAGER

Hare said the Budget process is not over. There is a Budget Hearing on June 12,2013. If there are lingering questionsfrom the Councilor the public they can be asked at that meeting. They can also set other dates if necessary.

Hare said, as reported in the paper, Hewlett-Packard (HP) has successfully appealed their tax bill to Benton County. Haresaid he was surprised to learn that even though the City of Albany was not a direct recipient of tax money from HP, thatwhen there is a tax refund given it is taken from all the taxing agencies. So the City of Albany will lose about $400,000revenues in the General Fund, the public safety levy, and the urban renewal agency district. Hare said staff thinks theycan cover this unexpected loss without making service cuts. Staff will bring a proposal to the Council with how to dothat. This tax refund involves about $9 million in taxes over several years that HP was overcharged. Hare said the Judgewas highly critical of the state's appraiser in making the ruling; the refund decision had nothing to' do with Benton Countyor the City of Albany, but we will be impacted nonetheless. Hare noted that the Corvallis is losing over $2 milli.on as aresult of the ta'l refund.

Taylor explained that taxes are segregated according to overlapping jurisdictions based on what is levied. For example,when $1 dollar of property tax is paid to Benton County, it is segregated according to the portion that each gets from thetotal allotment. So regardless of whether it is paid from Philomath, Corvallis, or North Albany, it is segregated among allthe taxing jurisdictions. How the refund is applied, is that the refund portion is paid first; so that same $1 has the refund

8

Albany City Council Regular SessionMay 22, 2013

come off of it first before the balance is segregated. Simply put, the overpayment made by HP to Benton County mustnow be deducted proportionally from all taxing jurisdictions.

Johnson asked, does the amount quoted include interest? Taylor said yes; the interest is at 12 percent. Hare said that itmakes no sense to pay it back at 12 percent since most jurisdictions have access to money for less than that, so he wouldargue against doing that.

Taylor said it has not been determined if it can be paid back as a group over time. They will need to detennine what thelaw allows. Benton County will be inviting the 57 total districts that participate in Benton County property tax to ameeting to discuss the implications and the options.

Hare said there is a meeting tomorrow with affected property owners to amend the Urban Growth Boundary (UGB) toimprove industrial land inventory. There is opportunity to trade land inside the UGB that is unusable for industrialpurposes for land that is outside the UGB that would work for industrial. This is a rare opportunity because it is unusualthat folks who own property inside a UGB want to get out of it, but that is what is taking place. It could be very positive.

Hare said there is property that was involved in a Local Improvement District (LID) that helped fund the Timber RidgeRoad improvements. Staffpassed out a map of the area and displayed an overhead (see agenda file).

Taylor said staff needs direction from the Council. He gave background about the LID. The improvements were done incooperation with GAPS to provide services for Timber Ridge Elementary School. It also provided infrastructure andservices for other tax lots in the vicinity. In about February there was a Work Session regarding a proposal by arepresentative of the Brandis Trust to partition the tax lot immediately nOIih of Knox Butte Road and proposing a multihousing development on one of the parcels. The concept received favorable support from the City Council. There was apre-application meeting scheduled which was subsequently postponed, then canceled. It appears that project is no longerviable.

Taylor said the assessments have been in place for two years and there has only been a partial payment on the southportion. By Ordinance and under the Bancroft Bonding Act the City can pursue foreclosure on the properties. Theowner's Attorney, Tom Gallagher, has suggested exchanging deeds in lieu of foreclosure. They propose deeding theproperties north of Knox Butte to the City in exchange for a $120,000 credit to their assessment on the tax lot south ofKnox Butte. They think that when property values rise they will be able to recoup enough in the sales price of theproperty on the south. The City's investment in the LID is the cost of the improvements. It appears it would be beneficialfor the City to consider their proposal. In order to move forward with the legal process, the City will want to secure itsinterest free of other encumbrances on those properties. Taylor said, we would require that they incur some costs inverifYing that liens are free and clear.

Delapoer used an overhead to show tbe parcels in default. The foreclosure process is not too complicated though it doescost. Delapoer said, an unusual thing to consider is that when foreclosing on failure to pay on an LID, you can't get adeficiency; so all the City can get is the property. Therefore, it doesn't matter what the property is worth, because that isall the City will get. The other piece may have some value, though how much depends on the market. For anyone todevelop it they would need to put in infrastructure which was funded by the LID. It would be the only City investmentand what the City would be getting in return for that investment is not only the infrastructure (sewer and water lines androads), but the property on both sides as well. There is no question this is a good move.

Delapoer said the question today is if the City should give them credit for $120,000 on the assessment on the southproperty. Delapoer said, this is not money from our pocket, and it buys them time by getting the southern portion out offoreclosure. If they get it sold and developed, then the City would get paid back the balance of the assessments and theexpectation is that commercial development on the other property would make the properties which the City would own,more valuable. Delapoer said, the question is, are you willing, in return for deed in lieu of foreclosure and foregoing theneed and cost to condemn, to give them the $120,000 credit.

Delapoer described the cost and time associated with a foreclosure. In the time it would take to foreclose, which would beat least six months, they have the right to payoff the City and buy it back. Delapoer said, if the real estate market isrising, however, and we get this property now, we avoid the risk of someone buying it out from under us during theforeclosure process.

Taylor said the northern tax lot has two liens, for $1.8 million and $211,000. He said, the infrastructure has already beenpaid for with loans from the Settlement funds, with the expectation that we would get a better interest rate than we couldhave gotten from the Local Government Investment Pool (LGIP.) The rate we are getting is 6.5 percent whereas the LGIPis using .55 percent. All Taylor is interested in recovering out of the LID is the cost of the assessment plus interest; thatwas the intent going into this and is why it was acceptable to the Council at that time to proceed with the loan from theSettlement funds.

Taylor said there is value in the cost of the improvements and there is value in the cost of the land. Delapoer said, there isno question that we want the land back because that is all we can get. The question is, is it worth giving them $120,000credit to their assessment now, to forego the cost of the foreclosure. If real estate becomes more valuable over thesummer and the cost of the land becomes more valuable than the cost of the infrastructure, we want the City to own thatasset. Is that worth $120,000? Delapoer and Taylor think it is though they cannot guarantee it. Discussion followed.

9

9

Albany City Council Regular SessionMay 22, 2013

Konopa recalled that the Parks & Recreation Department considered buying a portion of the northern parcel for a parkabout five years ago, but at the time the price tag was too high.

Delapoer pointed out that if the City owns the land they have more control over what eventually goes in there.

Collins asked for clarification on the amounts owed. Taylor said the two assessments on Tax Lot 100 (northern mostparcel, to the west of the school) total $2 million. Tax Lot 101 owes $1.5 million. Collins says those two plus the$120,000 makes this a $3.6 plus million decision. So the question is, do we think that over time the value of Tax Lot 100and 101 exceeds $3.6 million? Collins said, we need to net $3.6 million to come out even. Hare clarified that the Citywill either get possession of the land or someone will pay it off. He said to keep in mind that the balance has beenaccumulating interest at a rate of 6.5 percent; so the original assessment was something less than the total of $3.6 million.Taylor said that is correct.

Hare said, the issue before you today is, do you want to give them credit for that portion, or do you want the City toforeclose on all of it.

Collins asked the rationale behind the credit amount of $120,000. Staff is not sure why the property owner chose thatnumber. Delapoer said another option is that the Council could send staff back to bargain some more with the propertyowners.

Kellum said, we will get the money back for infrastructure when someone develops; so we just need to make sure we cansell it for a profit. He supports the proposal.

Johnson said Tax Lot 100 is over 52 acres; Tax Lot 101 is over 22 acres; and the portion the owners are keeping is over 23acres.

Delapoer said that if the Council is not willing to authorize the deal tonight, perhaps they can direct staff to continuenegotiating. Delapoer said the owners are trying to protect a specific portion of their property. He said, the City couldoffer them an additional year, so two years total, before we will pursue foreclosure in return for a deed in lieu of on theother property. Then the Council will not have out of pocket costs. Then, they can market it in.the additional two years,but they would still have to pay 100 percent of assessments. That way the City is not giving anything up, but the benefitto the property owner is more time, which is what they want in a rising real estate market. In this scenario, the City wouldget all its money back.

Delapoer will make a counter proposal: that the City will accept the north part via deed in lieu and require the propertyowners to buy title insurance; and in return the City would contractually agree to forebear any foreclosure activities fortwo additional years. The Council concurred.

Olsen was concerned that if the market did rise then the City might lose the opportunity to get the property for just thecost of the infrastructure. Delapoer said that is a risk. Olsen wonders what the property was worth before the marketcrashed.

Collins noted that the West Albany High School Girls Softball Team won the first playoff game against Willamette HighSchool. They are now moving into playoffs.

NEXT MEETING DATE: Work Session June 10,2013, and Regular Session June 12,2013

ADJOURNMENT

There being no other business, the meeting was adjourned at 9:56 p.m.

Respectfully submitted,

Mary A. Dibble, MMCCity Clerk

10

Reviewed by,

Stewart TaylorFinance Director

10

APPROVED: DRAFT

CITY OF ALBANYCITY COUNCIL WORK SESSION

Municipal Court RoomMonday, June 10,2013

4:00 p.m.

MINUTES

CALL TO ORDER

Mayor Sharon Konopa called the meeting to order at 4:00 p.m.

ROLLCALL

Councilors present:

Councilors absent:

Councilors Floyd Collins, Bessie Johnson, Rich Kellum, Ray Kopczynski, and Dick Olsen

Councilor Bill Coburn (excused)

BUSINESS FROM THE PUBLIC

Janet Steele, Albany Chamber of Commerce (ACC), presented to each Councilor a letter from the ACC (see agenda file)and a book, The Coming Jobs War, by Jim Clifton, CEO of Gallup. She said the ACC Board of Directors recently readthe book in preparation for a strategic planning retreat, and it was very well received. The ACC delivered about 90copies of the book to the Oregon House, Senate, and government offices earlier today. She said that now is the time foreveryone to work together on job creation and employee skills. She asked that Councilors read the book and said that shehopes to hear their feedback.

TRANSPORTATION SYSTEM DEVELOPMENT CHARGE ADJUSTMENT

Transportation Systems Analyst Ron Irish said that staff is requesting Council direction on adjusting TransportationSystem Development Charges (TSDC) in July. He said the City Council adopted an updated Transportation System Plan(TSP) and project list in 2010. The TSDC fee resolution adopted by Council included a five-year ramping schedule. Thesecond ramp was approved by Council on schedule and took effect on July I, 2012. lfCouncil elects to proceed with thenext step in the planned fee phase-in, staff will bring back a modified TSDC fee resolution under which theinflation-adjusted residential TSDC will increase from the current fee of $2, 148 to $2,582, and the funded project list willremain the same. If Council envisions a fee adjustment other than the adopted ramp step and Engineering News Record(ENR)adjustment, staff will use the recommended fee to determine lost revenue and suggest a list of projects to be removedfrom the funded list.

Irish said that in past discussions, the City Council indicated that if the forecast for the coming year shows growth in bothpersonal income and nonfarm employment, the City can assume the general state of the economy is improving andproceed with the planned phase-in of the TSDC. He referred to information in the written staff report forecasting growthin both areas, indicating that the next step in the planned phase-in ofthe TSDC would be consistent with Council's intent.

Councilor Rich Kellum said he is concerned about the impact that raising fees might have on the number of buildingpermit applications. City Manager Wes Hare noted that the first year of the ramp has been implemented. Generallyspeaking, he said, the City's rates tend to be at the lower end for cities of similar size in Oregon. He noted that the citiesexperiencing growth tend to have the highest fees, and that some cities have implemented a strategy of cutting fees toencourage development without much impact.

Councilor Floyd Collins said that this is a local choice on how we want to fund the part of the transportation system thatis oversized. If we don't have sufficient SDCs, then we have to find another way such as general obligation bonds. Thedecision to institute a ramp was the Council's response to concerns about the economy and a way to ease the ratesknowing full well that eventually we would have to getto a level sufficient to fund the projects.

Konopa said it's a balancing act; we want to make sure that residents don't carry the 'burden of new development whenthey don't benefit from it. She said the City has held off on raising all fees over the past few years due to the economy;but we can't continue to do that or we will have financial strain. Hare said that in some cases, it is also a choice ofwhether to live with the inconveniences and economic consequences of not putting in infrastructure. It is not a simplecalculation and administering the SDC system is not a simple issue.

Councilor Bessie Johnson said SDC fees will not stop construction but will just be included in the cost of development.She recalled the conversations when Council instituted the ramp and felt that was the fair way to go.

Brief discussion followed regarding how SDCs are calculated in Albany and other communities throughout the state andnation. There was general consensus to proceed with the next step in the planned fee phase-in.

11

Albany City Council Work SessionJune 10,2013,2013

ANNUAL ADJUSTMENT OF PLANNING FEES

Planner III David Martineau said that Resolution No. 4367 sets the fees for processing land use applications and providesfor an annual adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPl-W).Last year, the City Council decided to not adjust the Planning Division fees. Two options are submitted for this year'sannual fee adjustment. Option 1 reflects the increase in the CPl·W between April 2012 and April 2013 (0.9 percent);Option 2 reflects the increases in the CPl-W over the past two years (3.2 percent). Draft resolutions with current andrevised fee schedules for both options are included in the written staff report.

Councilor Ray Kopczynski asked if the fee change would affect the soon-to-be adopted City budget. CommunityDevelopment Director Heather Hansen said it would not affect the department budget because the fees goes into theGeneral Fund. Hare said he is not sure what fee increase was assumed in the proposed budget. He said that staff hasrecommended over the years to decrease the subsidy of permit activities but it has been a policy judgment to keep fees aslow as possible to try to encourage development.

Collins said that consideration should be given to the total amount a person has to pay for service fees and project fees.He would like to keep service fees as low as possible. Kellum suggested that billing for all fees at the same time wouldbe better for the "little guy". In discussion, Hansen clarified that the fees being considered are only planning fees; projectcosts are paid at the time of building permits, a separate phase of the process.. Hare said it used to be easier to subsidizefees but there is declining ability in the budget to do so. He said that larger developers probably don't have a problemwith the City's fees, but it can be a bigger issue for individuals or small developers. Martineau said there is a built-inmechanism, a surcharge, for capturing higher fees for larger projects.

Konopa reviewed past Council discussions regarding the desire to make some programs more self-sustaining. Hare saidthere is some disadvantage to delaying increases and then having to ask for a larger percent later.

Following brief discussion, there was general consensus to ask that staff bring back the resolution and fee scheduleproposed in Option 2.

COUNCILOR COMMENTS

Kellum said he read a newspaper mticle about school district employees in Eugene who were going to a training event inHawaii. He said there is a different standard in the public sector than the private sector when it comes to training. Harereviewed the processes followed in the City for travel and training. In his experience, the procedures are not that muchdifferent from the private sector where certain trainings are often covered. He must personally approve any request forout-of-state travel, and generally tries to approve trainings on the west coast only. He will attend the lCMA conferenceon the east coast this year; this will fulfill the 40 hours of annual training required by his profession which the City agreedto pay for as part of his contract negotiations.

CITY MANAGER REPORT

Hare said that there have been a growing number of complaints and concerns related to bad behavior by people whocongregate in various locations in town. He attended a meeting today with staff from Police and Parks & Recreation;Management AssistantJPublic Information Officer Marilyn Smith; and City Attorney Jim Delapoer to discuss ideas. Thisis an ongoing management issue for which there are no easy solutions. One idea that came up in discussion was apotential detox center or sobering station - a place where police can take people who are causing problems. Staff will becoming back with suggestions and ideas for Council's consideration.

Smith said the Boys & Girls Club has invited the City Council to hold a work session at their new building. There wasconsensus to hold the June 24 work session at the Boys & Girls Club.

ADJOURNMENT

There being no other business, the meeting was adjourned at 5:14 p.m.

Respectfully submitted,

Teresa NixAdministrative Assistant

2

Reviewed by,

WesHareCity Manager

12

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TO:

VIA:

FROM:

DATE:

Albany City Council

Wes Hare, City ManagerMark W. Shepard, P.E., Public Works Director

Jeff Blaine, P.E., Assistant Public Works Director/City EngineetC7J)Chris Cerklewski, Civil Engineer III I Y

June 28,2013, for the July 10,2013, City Council Meeting

SUBJECT: Award ofEngineering Services Contract for ST-13-03, North Albany RoadReconstruction

RELATES TO STRATEGIC PLAN THEME: • Great Neighborhoods• A Healthy Economy

Action Requested:

Staff recommends Council award an engineering services contract in the amount of $198,243.27 toWHPacific, Inc. of Salem, Oregon.

Discussion:

The N0l1h Albany Road Reconstruction Project includes reconstruction of NOlth Albany Road fromthe P0l11and & Westem Railroad tracks to approximately 500 feet n0l1h of Quany Road, and willinclude new pavement, curb and gutter, sidewalks and stOlm drains. As pal1 of the project WestThomton Lake Drive will be realigned to intel'sect North Albany Road at the North Albany MiddleSchool tr'affic signal. In addition, the second phase of the Broadway Reservoir Transmission Mainproject will be combined with this project to minimize impact to the public and recognize projectsavings due to economies of scale. The tr'ansmission main will be a 30-inch HDPE water line thatwill extend north from the new Pal'k & Ride site to an existing transmission main southwest of theGibson Hill Road roundabout. A project vicinity map is provided as Attachment 1.

Approximately 550 feet ofNorth Albany Road, including the bridge over Thomton Lake, is below the100-year floodplain. The new road, and therefore the bridge, will be raised to within one foot of the100-yeal' floodplain elevation in order to meet current standards and improve emergency accessduring a major flood event. The blidge will also be widened to accommodate sidewalks and will bebrought up to current seismic standal'ds. In addition, the bridge will be modified to CallY the new30-inch water transmission main over Thomton Lake.

City staff is performing design and construction management activities for the project. However,staff has identified the need to hire a consultant engineer to design the blidge improvements. This isconsistent with past practice where staff seeks supp011 from outside engineering films for specialtywork such as tr'affic signals, bridges, and sewer lift stations, Since the consultant fee was anticipatedto exceed $100,000, a Request for Proposals (RFP) was sent to five consultants in confonnance withthe Infonna1 Selection Procedure defmed in Oregon Administr'ative Rules (OAR) 137-048-0210.Two consultants returned proposals, OBEC Consulting Engineers and WHPacific, Inc. Staffreviewed the two proposals using the criteria defmed in the RFP and ultimately selectedWHPacific, Inc.

Budget Impact:

This project will be funded from a combination of North Albany Street Improvement Fee Projects(250-50-2701), Transportation SDC Reimbursement Fee Projects (250-50-2704), Transp011ation SDCImprovement Fee Projects (250-50-2703), and Str'eet Capital and Restoration (250-50-2700).

CLC:msAttachment

Attachment 1 - «N[}]YfBER» 13

ATTACHMENT 1: PROJECT VICINTY MAP142,000

PROJECT. LOCATION

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TO: Albany City CounCil

cA/Jjiihii··----7··VIA:

FROM:

DATE:

Wes Hare, City Manager

Stewart Taylor, Finaoee Direetor/

June 28, 2013, for the July 10,2013, City Council Meeting

SUBJECT: Intergovernmental Agreement - Hewlett-Packard Company Tax Refund

RELATES TO STRATEGIC PLAN THEME:. Effective Government

Action Requested:

By motion, enter into an intergovernmental agreement with Benton County and the 49 taxingdistricts of Benton County for tax-only payment of the Hewlett-Packard Company (HP) taxrefund.

Discussion:

HP is one of the largest taxpayers in Benton County. HP filed property tax appeals for tax years2008-09,2009-10, and 2010-11. The appeals challenged the Real Market Values (RMV) of theBuildings and Structures, and Machinery and Equipment in each of the three years.

On May 15,2013, Judge Henry C. Breithaupt of the Oregon Tax Court Regular Division decidedin a consolidated opinion that the RMVs for the subject property as found by HP were acceptedby the court as the real market values. Based on the court's decision, a refund of taxes paid, plusinterest atthe statutory rate (ORS 311.812(3)(a» of 12% per year, must be made to HP.

The tax overpayment refund owed to HP totals $7,744,464.04 as of June 30, 2013. Interest on therefund amount accrues at the rate of $77,639.81 per month and, as of June 30, 2013, totaled$1,630,974.48. In addition to the adjudicated appeals, HP also filed appeals for tax years 2011-12and 2012-13 and placed those appeals in abatement pending the outcome of the original three taxappeals. For purposes of calculating the total tax refund, the Benton County Assessor adjustedthe RMV for tax years 2011-12 and 2012-13 Jo comply with the court decision. Adjusted taxesand refunds bring the total tax refund to $9,423,566.46.

Pursuant to ORS 311.806(1), the HP tax refund must be paid by the county "out of the refundreserve account provided in ORS 311.807, or the unsegregated tax collections account." BentonCounty established a refund reserve account by deposit of funds contributed proportionally fromall taxing districts in Benton County. The reserve account has a balance of$1,028,754.14.

The proposed agreement provides a way to pay the HP tax refund as soon as possible to halt theaccrual of interest. In the agreement, Benton County agrees to pay the tax refund from thereserve account and from county reserve and general fund accounts. The taxing jurisdictions, inturn, agree to repay Benton County their proportional share of the refund balance according to theterms of the agreement. The interest portion of the refund will be paid at such time as theDepartment of Revenue appeal of the Oregon Tax Court decision is final. The decision may notbe final for up to two years.

15

IGA - HP Company Tax RefundPage 2June 28, 2013

The City of Albany proportional share of the refund is $243,675.26. The Albany RevitalizationAgency proportional share of the refund is $20,079.59. The Public Safety proportional share ofthe refund is $29,378.53. The City of Albany and the Albany Revitalization Agency, as well asall other taxing jurisdictions in Benton County, may directly pay the amount to Benton County ormay elect to have the amount deducted from tax turnovers in November, 2013. Interest willaccrue at the local government investment pool rate for amounts outstanding.

Budget Impact:

The HP refund will reduce property tax revenues in the 2013-2014 budget by the amountsindicated in the agreement. The full impact of the reductions will be assessed when the propertytax schedules are available in October, 2013. Any needed budget adjustments will be brought tothe City Council at that time.

STAttachment: IGA - HP Company Tax Refund

G:\Mmy\CC Memos\2013 HP tax rejill1d IGA.docx

16

INTERGOVERNMENTAL AGREEMENT FOR TAX-ONLY PAYMENTOF HEWLETT-PACKARD COMPANY TAX REFUND

THIS AGREEMENT, made and entered into this day of July, 2013 betweenBenton County, a political subdivision of the State of Oregon, hereinafter referred to as "County"and all 49 taxing districts of Benton County, plus the Oregon Department of Forestry, hereinafterreferred to as "Taxing Districts."

RECITALS

WHEREAS, by authority granted in ORS 190.010, units of local government may enterinto agreements with other units of local government and state agencies for the performance ofany and all functions and activities that a party to the agreement, its officers, or agents, have theauthority to perform.

WHEREAS, each of the parties to this Agreement is a "unit of local government" asdefined in ORS 190.003. Each of the parties has the legal authority for the performance of anyor all functions and activities set forth herein.

WHEREAS, pursuant to ORS 311.395, Taxing Districts are each entitled to theirproportionate share of the unsegregated taxes received by County.

WHEREAS, Hewlett-Packard Company ("HP"), is one of the largest taxpayers in BentonCounty. HP filed property tax appeals of Benton County Assessor's Account No. 417659 for taxyears 2008-09, 2009-10 and 2010-11. The tax appeals challenged the Real Market Values(RMV) of the Buildings and Structures, and Machinery and Equipment in each of the threeyears. The appeals, captioned Hewlett-Packard Company v. Department of Revenue, werefiled in the Oregon Tax Court's Magistrate Division, but were removed to the Regular Division byorder of Judge Henry C. Breithaupt. The appeals were assigned case numbers 4979, 4980 and4987. The cases were consolidated for trial. Pursuant to ORS 305.403(3)(a), the OregonDepartment of Revenue (DOR), through the Oregon Department of Justice, defended theappeals in Regular Division.

WHEREAS, prior to trial, DOR, HP and County reached agreement on the RMV of theMachinery and Equipment for each of the three years under appeal. On May 15, 2013, JudgeBreithaupt issued his opinion on the consolidated appeal.

WHEREAS, County collected the original taxes from HP during the pendency of theappeal and distributed it to the 49 Taxing Districts in Benton County, plus the OregonDepartment of Forestry pursuant to ORS 311.390.

WHEREAS, based on the court's decision, pre-trial settlement of the Machinery andEquipment RMV and collection of taxes during the appeal period, a refund of taxes paid, plusinterest at the statutory rate (ORS 311.812(3)(a» of 12% per year, must be made to HP. Abreakdown of the original tax collected, the adjusted taxes on the adjudicated and settled RMV,interest accrual and refund amount is contained on Exhibit "A" attached hereto and incorporatedherein by reference.

WHEREAS, DOR has appealed the Tax Court's decision to the Oregon Supreme Courtunder ORS 305.445. Pursuant to ORS 311.806(4)(c), "[i]nterest may not be paid on any refund

Final Intergovernmental Agreement for Tax-Only HP Tax Refund Repayment 6-27-13-

17

* * * prior to final resolution of the appeal." Under Oregon law, County may only refund HP taxoverpayments as determined by the Tax Court.

WHEREAS, the tax overpayment refund owed to HP totals $7)44A64.04, hereinafter"HP Tax Refund," as of June 30, 2013. Interest on the refund amount accrues at the rate of$77,639.81 per month and, as of June 30, 2013, totaled $1,630,974.48. In addition to theadjudicated tax appeals, HP also filed appeals for tax years 2011-12 and 2012-13 and placedthose appeals in abatement pending the outcome of the original three tax appeals. Following alegislative change, the Machinery and Equipment assessment was split off Account No. 417659in 2012 and assigned new Account No. 420924 for 2012-13. For purposes of calculating the taxrefund, the Benton County Assessor adjusted the RMV for tax years 2011-12 and 2012-13 forAccount No. 417659 and for 2012-13 for Account No. 420924 to comply with the court decisionand statutory requirements for post-adjudication values. Adjusted taxes and refunds attributableto those two tax years are included in Exhibit "A" and the total HP Tax Refund amount statedherein.

WHEREAS, pursuant to ORS 311.806(1), the HP Tax Refund must be paid by County"out of the refund reserve account provided in ORS 311.807, or the unsegregated taxcollections account."

WHEREAS, County established a refund reserve account under ORS 311.807, whichhas a balance of $1,028,754.14. This balance was created by deposit of funds from theunsegregated tax collections account. All Taxing Districts in Benton County contributedproportionally to the refund reserve account. County will use the refund reserve account to pay$1,028,754.14 of the refuhd owed to HP.

WHEREAS, the remainder of the HP tax refund, hereinafter "HP Refund Balance," totals$6,715)09.90 as of June 28, 2013. This Agreement describes the repayment plan for the HPRefund Balance.

WHEREAS, County's Board of Commissioners desire to pay the HP Tax Refund assoon as possible to halt the accrual of interest.

WHEREAS, County and the 49 Taxing Districts, plus the Oregon Department ofForestry, desire to enter into an agreement wherein County pays the entire $7)44A64.04 HPTax Refund no later than July 15, 2013, out of the refund reserve account and County reserveand general fund accounts. The Taxing Districts would then repay County their proportionalshare of the HP Refund Balance pursuant to the terms of this Agreement.

WHEREAS, County will establish a refund reserve account pursuant to ORS 311.814, topay the accrued interest on the HP Tax Refund at such time as the DOR appeal is final. Theinterest to be paid is the amount listed on Exhibit "A".

WHEREAS, payment by County of the HP Refund Balance out of its reserve andgeneral fund accounts requires the consent of each Taxing District to use its portion of theunsegregated tax receipts to repay County, and each Taxing District must consent and agreethat it will permit funds to be considered distributed to it under ORS 311.395(7) and to beapplied directly to repay County rather than physically receiving funds from County andimmediately returning them for payment of its proportional share of the HP Refund Balance. Ifconsent is not given, unsegregated taxes cannot be used to repay County in this manner.

Final Intergovernmental Agreement for Tax-Only HP Tax Refund Repayment 6-27-13-

18

WHEREAS, the purpose of this Agreement is to allow County to pay the HP RefundBalance out of its reserve and general fund accounts, obtain consent from the Taxing Districtsto use their proportionate share of the unsegregated taxes to repay County and to provide amechanism for the Taxing Districts' repayment to County.

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. TERM

This Agreement shall commence on July 1, 2013, and shall continue until the HP TaxRefund is paid in full and County has been repaid by all Taxing Districts for their proportionalshare of the HP Refund Balance.

2. TAXING DISTRICT GRANT AND WARRANTY

A. Taxing Districts irrevocably agree that County may use the refund reserveaccount and County's reserve and general fund accounts to pay the HP Tax Refund. TaxingDistricts agree to repay County for their proportional share of the HP Refund Balance fromeither: (1) future unsegregated tax revenue received by County; or (2) direct payment to County.If a Taxing District elects to repay County from future unsegregated tax revenue, the TaxingDistrict agrees such funds will be deemed to have been distributed to the Taxing Districtpursuant to ORS 311.395(7) and returned to County for payment of the Taxing District's shareof the HP Refund Balance.

B. If a Taxing District elects to repay County its proportional share of the HP RefundBalance either directly, or from its distribution of annual unsegregated tax revenues, after July15, 2013, the share owed by the Taxing District shall accrue interest at the government poolrate. In no event shall any Taxing District extend direct repayment of its share of the HP RefundBalance beyond October 31, 2013.

C. Repayment from Unsegregated Tax Revenues. If a Taxing District elects torepay its share of the HP Refund Balance after July 15, 2013, from its unsegregated taxrevenues, County shall deduct the Taxing District's proportional share of the HP RefundBalance, plus interest, from the Taxing District's share of the November 2013 distribution ofunsegregated tax revenues.

D. Repayment Directly to County. If a Taxing District elects to directly repayCounty for its share of the HP Refund Balance, it may do so, without interest, no later than July15,2013.

E. In the event a Taxing District fails to make a direct payment by midnight, October31, 2013, Taxing District consents to deduction (without notice from County) of its proportionalshare of the HP Refund Balance, plus the government pool interest rate, from its unsegregatedtax revenue distribution in November 2013. If County deducts a Taxing District's share of theHP Refund Balance from unsegregated tax revenue, the Taxing District agrees such funds willbe deemed to have been distributed to the Taxing District pursuant to ORS 311.395(7) andreturned to County for payment of the Taxing District's share of the HP Refund Balance.

F. Taxing Districts agree to submit to the Benton County Finance Director writtennotice of their repayment election at the time they submit the signature page executing thisAgreement .

Final Intergovernmental Agreement for Tax-Only HP Tax Refund Repayment 6-27-13

19

G. Each Taxing District's proportional share of the HP Refund Balance is identifiedon Exhibit "B" attached hereto and incorporated herein by reference. Each Taxing Districtagrees that any payment it makes out of its unsegregated tax revenues shall be made in itsproportionate share in the year the payment is made and each Taxing District furtheracknowledges that this proportional share changes each year based on that District's assessedvalue as a percentage of total assessed value. County and Taxing Districts acknowledge thatthe exact amount to be paid on the HP Tax Refund, each Taxing District's proportional share ofthe HP Refund Balance and the interest owed on the HP Tax Refund will not be definitivelyknown until such time as payment is made by County to HP. The figures listed in Exhibits "A"and "B" are estimates as of the June 28, 2013. Within seven (7) days of County making the HPTax Refund payment to HP, Exhibits "A" and "B" will be replaced with updated exhibits reflectingfinal figures. County will send all Taxing Districts copies of new Exhibits "A" and "B" and Countyand Taxing Districts agree to replacement of the exhibits without amendment of this Agreement.

H. Taxing Districts irrevocably agree that receipt of unsegregated taxes by Countymay be used to repay each Taxing District's share of the HP Refund Balance.

I. Each Taxing District warrants that it has full legal right and authority to executeand deliver this Agreement and to observe and perform its duties, covenants, obligations andagreements hereunder. The Resolution ("Resolution") of the Taxing District approving thisAgreement and authorizing its execution and delivery on behalf of the Taxing District, andauthorizing County to pay the HP Tax Refund with Taxing Districts' unsegregated tax revenueand to repay each Taxing District's proportional share of the HP Refund Balance, has been dulyand lawfully adopted and authorized in accordance with Taxing District's Charter, if any, itsPrincipal Act and other applicable Oregon law, and the Resolution was adopted at a meeting ormeetings which were held in accordance with Taxing District's Charter, if any, and applicableOregon law, and at which quorums were present and acting throughout.

J. This Agreement, and the written not.ice of repayment election, have been dulyauthorized, executed and delivered by the authorized officer(s) of the Taxing District andconstitute the legal, valid and binding obligations of the Taxing District.

3. COUNTY RESPONSIBILITIES

A. County shall use the refund reserve account balance and County reserve and/orgeneral fund accounts to pay the entire HP Tax Refund not later than July 15, 2013.

B. Within seven (7) days of remitting the HP Tax Refund, County shall notify allTaxing Districts of the amount paid and each Taxing District's proportional share of the HPRefund Balance.

C. County shall provide annual reports to Taxing Districts until all Taxing Districtshave repaid their proportional share of the HP Refund Balance.

4. GENERAL PROVISIONS

A. The parties acknowledge DOR's appeal of the Tax Court's decision to theOregon Supreme Court may result in a change in the amount of taxes owed by HP, and/or theHP Tax Refund and interest accrual. In the event a decision from the Oregon Supreme Courtresults in a return of taxes to County, the parties acknowledge ORS 311.385 (3) requires those

Finallntergovemmental Agreement for Tax-Only HP Tax Refund Repayment 6-27-13

20

repaid taxes be deposited into the unsegregated tax account and, under ORS 311.390, Countyshall distribute such a return to each Taxing District based on the proportional share in the yearthe payment is made and each Taxing District further acknowledges that this proportional sharechanges each year based on that District's assessed value as a percentage of total assessedvalue.

B. This Agreement shall be governed by the laws of the State of Oregon. Anyaction commenced in connection with this Agreement shall be in the Circuit Court of BentonCounty. The prevailing party shall be entitled to reasonable attorney fees and costs, includingon appeal. All rights and remedies shall be cumulative and may be exercised successively orconcurrently. The foregoing is without limitation to or waiver of any other rights or remediesaccording to law.

C. Any notice under this Agreement shall be in writing and shall be effective whenactually delivered in person, sent bye-mail or when deposited in the U.S. mail, registered orcertified, postage prepaid and addressed to the County Finance Director or County ChiefOperating Officer or the Head of the Taxing District Governing Body or such other party aseither the County or Taxing District may designate by written notice to the other.

D. This Agreement contains the entire understanding of the parties and supersedesall prior agreements, oral or written, and all other communications between the parties relatingto the sUbject matter of this Agreement. The parties may waive, alter, modify, sppplement oramend this Agreement only with a written instrument signed by all parties, except as provided insection 2.G.

E. If any provision of this Agreement as applied to any party or to anycircumstances shall be adjudged by a court to be void or unenforceable, the same shall in noway affect any other provision of this Agreement or the validity or enforceability of theAgreement.

F. This Agreement may be executed in several counterparts each of which shall beregarded as an original (with the same effect as if the signatures thereto and hereto were uponthe same document) and all of which shall constitute one and the same document.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective thieday and year first above written. The signature of Taxing District is given by the authority of itsGoverning Body and the signature of County being given by the authority of its Board of CountyCommissioners.

BOARD OF COUNTY COMMISSIONERSFOR BENTON COUNTY and as TaxLevying Authority for BENTON COUNTYLIBRARY SERVICE DISTRICT

By: _

Name & Title: _

Dated: _

Reviewed as to Form:

Benton County Counsel

Final Intergovernmental Agreement for Tax-Only HP Tax Refund Repayment 6-27-13-

21

Hewlett Packard

Refund Estimates

Account 417659Refunded

Year Original Tax Adjusted Tax Tax Change Discount Interest Interest Total

2008 $ 5,111,630.64 $ 4,417,983.36 $ 693,647.28 $ - $ - $ 367,647.28 $ 1,061,294.562009 4,085,833.39 3,718,156.40 367,676.99 - - 150,298.18 517,975.17

2010 5,414,393.60 3,212,734.79 2,201,658.81 96,382.04 48,127.94 645,762.30 2,991,931.092011 5,655,239.74 3,371,128.66 2,284,111.08 101,133.86 - 381,527.03 2,766,771.972012 2,715,039.20 934,909.17 1,780,130.03 28,047.28 - 77,604.08 1,885,781.39

$ 22,982,136.57 $ 15,654,912.38 $ 7,327,224.19 $ 225,563.18 $ 48,127.94 $ 1,622,838.87 $ 9,223,754.18

Account 420924

Year Original Tax Adjusted Tax

2012 $ 2,032,671.29 $ 1,840,994.62 $Tax Change

191,676.67 $Discount

$

Refunded

Interest

$Interest

8,135.61 $Total

199,812.28

NN

TotalsRefunded

Account Original Tax Adjusted Tax Tax Change Discount Interest Interest Total

417659 $ 22,982,136.57 $ 15,654,912.38 $ 7,327,224.19 $ 225,563.18 $ 48,127.94 $ 1,622,838.87 $ 9,223,754.18420924 2,032,671.29 1,840,994.62 191,676.67 - - 8,135.61 199,812.28

$ 25,014,807.86 $ 17,495,907.00 $ 7,518,900.86 $ 225,563.18 $ 48,127.94 $ 1,630,974.48 $ 9,423,566.46

EXHIBIT A

Hewlett PacImrd Refund Information - as of June 28, 2013

Potential

Refund

Tnxine District 6,715,709.90BENTON COUNTY 921,104.19

BENTON COUNTY LOCAL OPTION 310,752.76

BENTON COUNTY LIBRARY 149,149.54

ALSEA HEALTH CLINIC 3,416.57

ALSEA S.D. #7 20,008.29

CORVALL SD 509J 1,372,845.91

Corvallis SD Capital Canst. Bds 511,141.75

Corvallis Local Option 249,207.91

CENTRAL SCH # 13J 1,262.12

CENTRAL SCH #13J Bonds 537.21

PHILOMATH SD #17 177,645.16

PHILOMATH SD #17 Bonds 101,033.85

MONROE UHlJ SCH 57,027.98

HARRISBURG SD#7 1,113.41

GRTR ALBANY SD8 220,018.43

GAPS 2007 Bonded debt 78,450.05

LINN-BENTON ESD 124,592.54

LANE COMM COLLG 4,006.87

LANE COMM COLLG 1,620.51

LINN-BENTON CC 272,428.59

CITY OF CORVALL 1,268,604.86

CITY OF CORVALL-DEBT 64,042.66

CITY OF CORVALLIS LOCAL OPTION 111,782.85

CITY OF MONROE 12,489.14

CITY OF PHILOMTH 82,105.33

CITY OF PHILOMTH 27,234.52

CITY OF ALBANY 243,675.26

CITY OF ALBANY (urban renewa!) 20,079.59

Ci(v of Albanv local onlion 29,378.53

CITY/ADAIR VILLAGE 5,832.16

CORVALLRFD 88,726.49

N ALBANY RFD 12,433.11

N ALBANY RFD Local Option 7,068.78

ADAIRRFD 13,181.81

PHILOMATH RFD 57,117.66

MONROE RFPD #5 19,241.15

PALESTINE RFD 5,556.08

Palestine RFD Local Oplion 4,005.73

ALSEARFD 3,212.40

HOSKlKINGS RFD8 3,609.79

BLOD/SUMM RFD9 1,612.23

NORTH "F" STREET 822.82

COUNTRY EST ROAD DISTRICT 837.56

COUNTRY EST ROAD DISTRICT 73.81

COUNTRY EST ROAD DISTRICT 582.67

VINEYARD MTN ROAD DISTRICT 3,309.70

MARYS RVR ESTATES ROAD DISTRICT 3,864.67

ROSEWOOD ESTATES ROAD DISTRICTS 1,048.Q9

CHINOOK DR ROAD DISTRICT 2,231.91

JC WATER mST SPECIAL ASSESSMENT 1,082.54

BENTON SOIL & WATER 20,746.73

STATE FIRE PAT SPECIAL ASSESSMENT 12,845.47

FIRE PATROL SURCHARGE 9,910.13

6,715,709.90

Based on current estimated values:a, Total refund is $9,423,566.46b. Refund for taxes only is $7,744,464.04 million

($7,518,900.86 + 225,563.18)c. Interest portion of refund (through end ofJuly 15, 2103)

is $1,630,974.48 milliond. Refund of previously paid interest is $48,127,94e. Amount available in refund reserve account is $1,028,754.14f, Amount to be paid to HP before July 15,2013 is $6,715,709.90

($7,744,460.04 - 1,028,754.14)

EXHIBIT B

23

CITY OF ALBANY

By: _

Name & Title: _

Dated: _

Final Intergovernmental Agreement for Tax-Only HP Tax Refund Repayment 6-27-13-

24

TO:

VIA:

FROM:

DATE:

Albany City Council

Wes Hare, City ManagerMark W. Shepard, P.E., Public Works Director

Jeff Blaine, P.E., Assistant Public Works Director/City Enginee~ffChris Cerklewski, P.E., Civil Engineer III C L c... .June 28,2013, for the July 10, 2013, City Council Meeting

SUBJECT: ST-13-03, NOlth Albany Road Recons11UctionST-13-04, Main Street Rehabilitation

Surface Transportation Program Fund Exchange

RELATES TO STRATEGIC PLAN THEME:

Action Requested:

• A Safe City

Staff recommends that Council authorize the City Manager to execute an intergovernmentalagreement with the Oregon Department of TranspOltation (ODOT) to exchange federal SmfaceTranspOltation Program (STP) funds for state funds.

Discussion:

Each year the City of Albany is allocated a percentage of federal transpOltation funds received bythe State of Oregon. The funds are allocated to cities based on population.

ODOT facilitates a fund exchange program in which cities can choose to exchange the federalSTP funds for state funds. Exchange of the funds allows qualifYing street work to be completedusing state funding instead of federal funding. Projects do not have to meet all of the federalrequirements, greatly simplifYing the administrative process and reducing project costs for localgovernments. The exchange rate for the program is 94 percent.

The current Capital Improvement Program identifies the Main Street Rehabilitation project andthe NOlth Albany Road Reconstmction project for fiscal year 2012-13. Due to the estimated costof the projects, amounts from the 2010, 2011, 2012 and 2013 fund exchange programs will beused on these projects. Constmction of these two projects is anticipated to occur during thesummer of2014.

The following table summarizes the funds the City will receive under this intergovernmentalagreement.

Year Federal Funds Exchan2e Rate State Funds2010 $109,043.28 94% $102,500.682011 $571,443.00 94% $537,156.422012 $589,505.00 94% $554,134.702013 $591,470.00 94% $555,981.80

TOTAL $1,861,461.28 $1,749,773.60

25

City CouncilPage 2June 28,2013, for the July 10,2013, City Council Meeting

The STP fund exchange program is a reimbursement program. The City will send documentationto ODOT with a request for reimbursement according to the agreement. Staff recommends StreetCapital and Restoration fund (250-50-2700) be used to expend the interim funds and receive thereimbursement.

Budget hnpact:

This agreement will have no net impact on the Street Capital and Restoration fund (250-50-2700).The STP funding revenue was included in the 2014 year budget that was recently approved byCouncil. The Street Capital and Restoration fund will be used to expend the project costs up tothe eligible reimbursement amount and will receive an equal amount back fl:om the ODOTreimbursement.

CLCAttachment

26

Misc. Contracts and AgreementsNo. 29473

2010-2013 FUND EXCHANGE AGREEMENTMain Street Rehabilitation and North Albany Road: Quarry Road-Railroad Tracks Project

City of Albany

THIS AGREEMENT is made and entered into by and between the STATE OF OREGON,acting by and through its Department of Transportation, hereinafter referred to as "State";and the CITY OF ALBANY, acting by and through its designated officials, hereinafterreferred to as "Agency," both herein referred to individually or collectively as "Party" or"Parties."

RECITALS·

1. By the authority granted in Oregon Revised Statute (DRS) 190.110, 366.572 and366.576, State may enter into cooperative agreements with counties, cities and unitsof local governments for the performance of work on certain types of improvementprojects with the allocation of costs on terms and conditions mutually agreeable to the

.contracting parties. .

NOW THEREFORE, the premises being in general as stated in the foregoing Recitals, itis agreed by and between the Parties hereto as follows:

TERMS OF AGREEMENT

1. Agency has submitted a completed and signed Part 1 of the Project Prospectus, or asimilar document agreed to by State, outlining the schedule and costs associatedwith all phases of the Main Street Rehabilitation Project and North Albany Road:Quarry Road-Railroad Tracks Project, hereinafter referred to as "Project."

2. State has reviewed Agency's prospectus and considered Agency's request for theFund Exchange. State has determined that Agency's Project is eligible for theexchange of funds.

3. To assist in funding the Project, Agency has requested State to exchange federalfunds in the following manner:

Fiscal Year Federal Funds Exchange Rate State Funds

2010 $109,043.28 94% $102,500.68

Fund Exchange IGA (Revised July 30, 2012) - 1 -27

2011 $571,443 94% $537,156.42

2012 $589,505 94% $554,134.70

2013 $591,470 94% $555,981.80

Total $1,861,461.28 $1,749,773.60

4. Agency shall exchange a total of $1,861,461.28 federal funds for state funds at theratios defined in the above table. State shall reimburse Agency up to the total of$1,749,773.60 state funds for eligible costs incurred.

5. The term of this Agreement will begin upon execution and will terminate September30,2015 unless extended by an executed amendment. .

6. The Parties agree that the exchange is subject to the following conditions:

a. The federal funds transferred to State may be used by State at its discretion.

b. State funds transferred to Agency must be used for the Project. This FundExchange will provide funding for specific roadway projects and may also beused for the following maintenance purposes:

i. Purchase or Production of Aggregate. Agency shall ensure the purchase orproduction of aggregate will be highway related and used exclusively forhighway work.

ii. Purchase of Equipment. Agency shall clearly describe how it plans to use saidequipment on highways. Agency shall demonstrate that the equipment willonly be used for highway purposes.

c. State funds may be used for all phases of the Project, including preliminaryengineering, right of way, utility relocations and construction. Said use shall beconsistent with the Oregon Constitution and statutes (Section 3a of Article IXOregon Constitution). Agency shall be responsible to account for expenditure ofstate funds.

d. This Fund Exchange shall be on a reimbursement basis, with state funds limitedto a maximum amount of $1,749,773.60. All costs incurred in excess of the FundExchange amount will be the sale responsibility of Agency.

e. State certifies, at the time this Agreement is executed, that sufficient funds areavailable and authorized for expenditure to finance costs of this Agreement withinState's current appropriation or limitation of the current biennial budget.

29473 - 2 -28

f. Agency, and any contractors, shall perform the work as an independentcontractor and will be exclusively responsible for all costs and expenses relatedto its employment of individuals to perform the work including, but not limited to,retirement contributions, workers' compensation, unemployment taxes, arid stateand federal income tax withholdings.

g. Agency shall comply with all federal, state, and local laws, regulations, executiveorders and ordinances applicable to the work under this Agreement, including,without limitation, the provisions of ORS 279C.505, 279C.515, 279C.520,279C.530 and 2798.270 incorporated herein by reference and made a parthereof. Without limiting the generality of the foregoing, Agency expressly agreesto comply with (i) Title VI of Civil Rights Act of 1964; (ii) Title V and Section 504of the Rehabilitation Act of 1973; (iii) the Americans with Disabilities Act of 1990and ORS 659A.142; (iv) all regulations and administrative rules establishedpursuant to the foregoing laws; and (v) all other applicable requirements offederal and state civil rights and rehabilitation statutes, rules and regulations.

h. Agency, or its consultant, shall conduct the necessary preliminary engineeringand design work required to produce final plan"s, specifications and costestimates; purchase all necessary right of way in accordance with current stateand federal laws and regulations; obtain all required permits; be responsible forall utility relocations; advertise for bid proposals; award all contracts; perform allconstruction engineering; and make all contractor payments required to completethe Project.

i. Agency shall subrryit invoices to State on a monthly basis, for actual costsincurred by Agency on behalf of the Project directly to State's Project Managerfor review and approval. Such invoices will be in a form identifying the Project,the agreement number, the invoice number or account number or both, and willitemize all expenses for which reimbursement is claimed. Under no conditionsshall State's obligations exceed $1,749,773.60, including all expenses. Travelexpenses will not be reimbursed.

j. Agency shall, at its own expense, maintain and operate the Project uponcompletion at a minimum level that is consistent with normal depreciation andservice demand.

k. All employers, including Agency, that employ subject workers in the State ofOregon shall comply with ORS 656.017 and provide the required Workers'Compensation coverage unless such employers are exempt under ORS656.126. Employers Liability insurance with coverage limits of not less than$500,000 must be included. Agency shall ensure that each of its subcontractorscomplies with these requirements.

29473 - 3 -29

I. This Agreement may be terminated by either party upon thirty (30) days' notice,in writing and delivered by certified mail or in person.

i. State may terminate this Agreement effective upon delivery of written noticeto Agency, or at such later date as may be established by State, under any ofthe following conditions:

A. IfAgency fails to provide services called for by this Agreement within thetime specified herein or any extension thereof.

B. If Agency fails to perform any of the other provisions of this Agreement, orso fails to pursue the work as to endanger performance of this Agreementin accordance with its terms, and after receipt of written notice from Statefails to correct such failures within ten (10) days or such longer period asState may authorize.

ii. Either Party may terminate this Agreement effective upon delivery of writtennotice to the other Party, or at such later date as may be established by theterminating Party, under any of the following conditions:

A. If either Party fails to receive funding, appropriations, limitations or otherexpenditure authority sufficient to allow either Party, in the exercise of theirreasonable administrative discretion, to continue to make payments forperformance of this Agreement.

B. If federal or state laws, regulations or guidelines are modified orinterpreted in such a way that either the work under this Agreement isprohibited or either Party is prohibited from paying for such work from theplanned funding source.

iii. Any termination of this Agreement shall not prejudice any rights or obligationsaccrued to the Parties prior to termination.

m. State and Agency agree that if any term or provIsIon of this Agreement isdeclared by a court of competent jurisdiction to be invalid, unenforceable, illegalor in conflict with any law, the validity of the remaining terms and provisions shallnot be affected, and the rights and obligations of the Parties shall be construedand enforced as if the Agreement did not contain the particular term or provisionheld to be invalid.

7. Agency acknowledges and agrees that State, the Oregon Secretary of State's Office,the federal government, and their duly authorized representatives shall have accessto the books, documents, papers, and records of Agency which are directly pertinentto this Agreement for the purpose of making audit, examination, excerpts, and

29473 -4-30

transcripts for a period of six (6) years after final payment. Copies of applicablerecords shall be made available upon request. Payment for costs of copies isreimbursable by State.

8. Agency certifies and represents that the individual(s) signing this Agreement hasbeen authorized to enter into and execute this Agreement on behalf of Agency,under the direction or approval of its governing body, commission, board, officers,members or representatives, and to legally bind Agency.

9. This Agreement may be executed in several counterparts (facsimile or otherwise) allof which when taken together shall constitute one agreement binding on all Parties,notwithstanding that all Parties are not signatories to the same counterpart. Eachcopy of this Agreement so executed shall constitute an original.

10. This Agreement and attached exhibits constitute the entire agreement between theParties on the subject matter hereof. There are no understandings, agreements, orrepresentations, oral or written, not specified herein regarding this Agreement. Nowaiver, consent, modification or change of terms of this Agreement shall bind eitherParty unless in writing and signed by both Parties and all necessary approvals havebeen obtained. Such waiver, consent, modification or change, if made, shall beeffective only in the specific instance and for the specific purpose given. The failureof State to enforce any provision of this Agreement shall not constitute a waiver byState of that or any other provision.

THE PARTIES, by execution of this Agreement, hereby acknowledge that their signingrepresentatives have read this Agreement, understand it, and agree to be bound by itsterms and conditions.

The funding for this Fund Exchange program was approved by the OregonTransportation Commission on March 21, 2012, as a part of the 2012-2015 StatewideTransportation Improvement Program (STIP).

The Program and Funding Services Manager approved the Fund Exchange on June 12,2013.

Signature Page to Follow

29473 - 5 -31

CITY OF ALBANY, by and through itsdesignated officials

By _

City Manager

Date _

By --'-- _City Public Works Director

Date _

APPROVED AS TO LEGALSUFFICIENCY

By _

Agency Counsel

Date _

Agency Contact:Chris Cerklewski, P.E.City of AlbanyPublic Works, EngineeringPO Box 490Albany, Oregon 97321Chris. cerklewski@cityofalbany.net

State Contact:_Michael S. Starnes,P.L.S.Region 2 Local Agency Liaison455 Airport Road SE, Building BSalem, Oregon 97301-5395Michael.s.starnes@odot.state.or.us

29473

STATE OF OREGON, by and throughits Department of Transportation

. By _

Highway Division Administrator

Date _

APPROVAL RECOMMENDED

By _

Region 2 Manager

Date _

APPROVED AS TO LEGAL SUFFICIENCY

By _

Assistant Attorney General

Date-----------

- 6 -32

SUBJECT: Reappointment to Library Board and Filling Vacant Position on Linn County LocalPublic Safety Coordinating Council

RELATES TO STATEGIC PLAN THEME: • An Effective Government

~f41f~n'IT"'.." "'~tl1

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TO:

FROM:

DATE:

Albany City Council

Sharon Konopa, Mayor

July 2,2013, for July 10,2013, City Council Meeting

Action Requested:

Council approval of the following appointments:

Library BoardGeorgiann Wheeler (Mayor's reappointment)

Linn County Local Public Safety Coordinating CouncilPolice Chief Mario Lattanzio (Mayor's new appointment to fill vacant Position #10 for

term that expires August 31, 2015.)

Discussion:

There were two term expirations on the Library Board on June 30, 2013. Georgiann Wheeler hassubmitted an application to be considered for reappointment to a second four-year term which Iam recommending to the Council. The other Board member did not want to be considered forreappointment. A recommendation to fill the second vacancy will be submitted for approval at asubsequent Council meeting.

With Chief Boyd's retirement, it left his position on the Linn County Local Public SafetyCoordinating Council. It's my recommendation that the Chief Lattanzio be appointed to fill thisposition. As the City's Police Chief, he will also become an automatic member of the WillametteCriminal Justice Council.

Budget Impact:

None.

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U:lAdminislrafive Services\Cily Manager's Office\Boards-Commissions\2013 Recruilmenl\"2013 Libral)' Board & Public SafelYCOl/ncil,doc

33

BOARD, COMMISSION, AND COMMITTE1E~­

APPLICATION

(list allfor which you are applying)

(Please print legibly or type)

Board, Commission, and/or Committee Preference:

(541) 917-7500

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CITY HALL33 Broadalbi'n Street SW

P.O. Box 490Albany, OR 97321-0144

www.cityofalbany.net

Name:

Residential Information:

Home Address: Phone:

E-mail:

Cellular: 2 {)?; -?5 1- D' (s., q t./ ::(I

Fax:(Optional)

/

Employment Information:

Employer's Name:

Work Address: Phone:

Cellular:

9 t.?) 2I ~ I

E-mail:-----------------

Fax:(Optional)

Please provide information as requested below to describe your qualifications to serve on this City of Albany Board,Commission, or Committee. Feel free to provide additional information that you may wish to share with the City.

• List current or most recent occupation, business, trade, or profession:

C-CA. II \,~ fL.· 0lh-L'~ Q I- t 62-/ ,,'- . -

.5/) eel '0- ( 0Y cex S ~

For City use only: Ward: I I II Lives Outside City Limits (Circle One)

If lives outside city limits, does applicant meet special definition for the specific blclc for which applying?

Yes No Ifyes,how? _34

BOARD, COMMISSION, AND COMMITTEE APPLICATION FORMPage 2

• Indicate why you are interested in serving on this board, commission, or committee and what other qualifications

.--.--aPply ~o this posi~,o ...c::,J--, L,-w-· ' ~. '---'~c~ )

.-'

• What contributions do you hope to make? I

0.~ ti,- .

7 Dale C/

U:\Administrative Services\City Manager's OjficelBoards-CommissionslFormslBoards, Commissions, and Committees Application Form-Revised.doc 08/1612012

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