lebanon city council meeting · city council meeting august 10, 2011 – 7:00 pm (santiam travel...

Lebanon City Council Agenda – 8/10/2011 Page 1 of 2

CALL TO ORDER / FLAG SALUTE

ROLL CALL OATH OF OFFICE (newly appointed officials):

Ron Miller, Councilor – Ward 3 Mike Schulte, Interim Police Chief

APPROVAL OF CITY COUNCIL MINUTES: Regular Session – July 13, 2011

CONSENT CALENDAR - The following item(s) are considered routine and will be enacted by one motion. There will not be a separate discussion of these items unless a Councilor so requests. In this case, the item(s) will be removed from the Consent Calendar and considered separately.

AGENDA: Lebanon City Council Agenda – August 10, 2011 BOARD MINUTES: Library Advisory Board Meeting – June 15, 2011

CITIZEN COMMENTS – Citizens may address the Council on any matters that do NOT pertain to scheduled Public Hearings or other items already on the agenda. All comments concerning a Public Hearing must be addressed during that agenda item. As for other items listed on the agenda, the Mayor will ask for input in the order they appear.

PUBLIC HEARING(S) 1) Weirich Drive R-O-W Vacation (Bender) – continued from 7/13/11

Presented by: Dan Grassick, Utilities and Engineering Services Manager

Approval/Denial by ORDINANCE BILL NO. 2011-11, ORDINANCE NO. 2824

2) Amending Exhibit A of Resolution No. 2011-28 to include additional Surplus of City-Owned Real Property – 3 Lots (Project Walden Area) and 120 Vine Street

Presented by: John Hitt, City Manager

Approval/Denial by RESOLUTION NO. 2011-29

CITY COUNCIL MEETING August 10, 2011 – 7:00 pm

(Santiam Travel Station - 750 3rd Street)

A G E N D A


REGULAR SESSION

3) Lebanon Skate Park Committee – Operating Proposal Dated July 16, 2011


Discussion Only

4) Utility Franchise Agreement with Northwest Natural Gas Company

Presented by: Rob Emmons, Senior Engineer

Approval/Denial by ORDINANCE BILL NO. 2011-12, ORDINANCE 2825

5) Award Bid for Industrial Way Waterline Project

Presented by: Ron Whitlatch, Senior Engineer

Approval/Denial by MOTION

6) Declared Surplus Property Sale Agreement (Counter Offer) – 2774 Birch Street


Approval/Denial by MOTION

7) City of Lebanon HRA/VEBA Trust Agreement (Employee Insurance Plan)


Approval/Denial by RESOLUTION NO. 2011-30

8) City Manager’s Report Presented by: John Hitt, City Manager DISCUSSION ITEMS FROM COUNCIL

CITIZEN COMMENTS – Another opportunity for citizens to comment on items discussed earlier, with the exception of any public hearings, or new business.

ADJOURNMENT

LEBANON CITY COUNCIL MINUTES

July 13, 2011

Council Present: Mayor Ken Toomb, Councilors Margaret Campbell, Bob Elliott, Floyd Fisher, Wayne

Rieskamp, and Ray Weldon

Staff Present: City Manager John Hitt, Assistant City Manager Ginger Allen, City Attorney John Tré Kennedy, Police Chief (AIC) Mike Schulte, Community Development Manager Walt Wendolowski, Finance Director Dean Baugh, Utilities and Engineering Manager Dan Grassick, and Senior Engineer Ron Whitlatch

CALL TO ORDER / FLAG SALUTE / ROLL CALL

Mayor Toomb called the Regular Session of the Lebanon City Council to order at 7:00 p.m. in the Santiam Travel Station Board Room. Roll call was taken with all Councilors present.

Mayor Toomb announced that amended agendas had been distributed.

APPROVAL OF CITY COUNCIL MINUTES

Councilor Elliott moved, Councilor Rieskamp seconded, to approve the June 8, 2011 City Council Minutes as presented. The motion passed unanimously by roll call vote.

CONSENT CALENDAR

AGENDA: Lebanon City Council Agenda – July 13, 2011 APPOINTMENT: Bike & Pedestrian Board – Linda Martin BOARD MINUTES: Library Advisory Board Meeting – May 11, 2011 Parks/Tree Board Meeting – January 18, 2011 UTILITY EASEMENT: Wheeler Street (Ixtapa Waterline)

Councilor Rieskamp moved, Councilor Elliott seconded, to approve the Consent Calendar as presented. The motion passed unanimously by roll call vote.

PROCLAMATIONS

Mayor Toomb read two proclamations and declared:

1. August 1-27, 2011 to be “Geography Awareness Week.” 2. August 2, 2011 to be “National Night Out.”

PRESENTATIONS

1) “If I Were Mayor” Contestant Awards

Mayor Toomb honored the contest recipients – Paige Wombacher, Leaf Murray, Joey Stroup, Christina Coakley, Danielle Maestas, Amanda Short, and Rachel Newport.



2) Recognition of the NW Steelheaders

Mayor Toomb recognized the NW Steelheaders for their contribution and dedication to keeping the Cheadle Lake area as natural as possible.

3) Build Lebanon Trails Status Update

Rob Carter presented an update for Build Lebanon Trails (BLT). He stated that they are committed to improving the community’s overall quality of life through better health, events, safer transportation, and improved property values. They could not do this without the support of the community and a very dedicated staff. The BLT wishes to minimize the burden on the City with resources in support of further trail development. They are on standby with resources to help with the Samaritan Plaza to Marks Slough Couplet Trail, future grant writing, and much more. BLT is in final preparation of the non-profit designation to include a 501(c)3, which will allow them to solicit funds, including grants that are not available to government entities. Slides of recent projects were shown.

Mr. Carter requested a closer partnership on future grant application processes. He stated that they understand that final decisions and projects must be approved and managed by the City, but they would like to ensure that it is closely coordinated with BLT’s independent grant process. They are prepared to get involved and will continue partnering closely, as a subcommittee, with the Parks/Tree Board. The intention is one of collaboration with emphasis on minimizing, if not eliminating, the burden on the City, while continuing the community’s health and well-being improvements.

What BLT has to offer is the ability to identify and develop projects that would otherwise be unobtainable, attract private donations and grants, and assist the City on government grant projects. They are asking for a formal mechanism or inclusion into the trails and grants process because without unity, great opportunities will be missed. Much can be accomplished by combining resources of the City (through government grants) and BLT (private funding and grants).

Mayor Toomb asked if BLT plans to present some proposals to the Council. Mr. Carter stated that they would like City staff to find a way so that they have closer coordination with the City. Dr. Thad Nelson explained that BLT currently does not know where to go to discuss major projects. Their goal is to have the projects done at little or no cost to the City, but there is no formal way to work things out and bring proposals to the City to vote on. They will do the legwork and apply for the grants, but they would like to have the City’s input. For smaller projects, they can work with Parks Supervisor Williams. He really believes that they can accomplish things, particularly with the people associated with the medical school and hospital. He also discussed the health benefits of the trail system.

Responding to Mayor Toomb’s suggestion that the group work with the Parks/Tree Board to come up with a recommendation, Mr. Carter stated that they would like a mechanism with Hitt’s staff because they believe that this is where the work will get done, but to bother City staff on a regular basis is not helpful. They have done a lot in the Cheadle Lake area. They see that the northern part of town has high visibility with some of the newcomers, so they would like to take advantage of this and get some of those projects done now. They believe that this is where the next phase should take place, but they should somehow do this more directly with the City.

Assistant City Manager Allen stated that she feels this is a great idea. Responding to Allen bringing up the connectivity issue, Mr. Carter indicated that the handout includes a proposed trail plan and shows the interconnectivity. They hope to put in a walking bridge so that the trail is a loop. Allen stated that she found the original goal of 52 miles to be lofty. A 20-mile connected trail that can be maintained would be something Lebanon could be proud of.

Hitt stated that the Medical College will change the nature of this community. As that nature changes, we need to focus on providing the amenities and type of community appropriate for a whole different type of town. He feels that BLT is a big part of that, so he suggested that they sit down within the next week or two to come up with a plan to keep this moving forward. He agreed with Dr. Nelson that it is a good idea to come back in two months with a proposal to Council.

Councilor Campbell stated that the newly formed governance rules for City committees are an important resource in defining the appropriate relationship between the City and BLT.

4) Lebanon “The Perfect Choice”

Lebanon Chamber of Commerce Director Shelly Garrett played a video promoting development in Lebanon. The cost to produce it was $3,500 ($1,000 from the Tourism Fund and $2,500 from the Chamber) and it will be updated annually. Copies are available to anyone interested in promoting development.

CITIZEN COMMENTS –

Malcolm Campbell, 176 W. Jadon Drive, Lebanon, stated that he recently received a storm water bill for his unimproved lot on Berlin Road. He feels that the charge is completely wrong since there is no water runoff collection within a half-mile of the property. He agrees that there is runoff collection on his Jadon Drive home and will pay that charge.

Mayor Toomb pointed out that there were several public hearings on this issue with the Council’s decision being that all property owners within City limits will pay the storm water fee.

Mr. Campbell asked whether the Council would consider revising this. He also stated that he just received his first bill and the City is now thinking of increasing it due to inflation. He informed the Council that his social security benefits have not had an inflation adjustment in three years.

Mayor Toomb stated that he understands Mr. Campbell’s concerns.

Paul Bullock, 37288 Fawn Drive, Lebanon, entered a letter into the record. He stated that he is the Chairman of Mid Valley Proficiency School. State funds ($450,000) are available, so they are petitioning for a planning grant to bring an additional high school option to Lebanon. Redmond has one of the best high schools in the country. Since their proposal is so close in concept to Redmond’s program, Redmond has agreed to partner and donate time and resources to bring their techniques to Lebanon. This partnership proposal is now being looked at by the School Board but it has generated a political cat fight. No one voicing opposition has visited the Redmond school, despite repeated invitations and despite compelling success statistics.

Although schools are not under City jurisdiction, he believes that this will end up as a community decision. They are not requesting Council support, but they are asking everyone to investigate this for themselves and see where all the enthusiasm and positive hope for the future is coming from. He invited everyone to visit the school. Representatives of the school system will also be here throughout this summer.

Councilor Weldon asked whether this is different than a traditional school and whether it is vocational. Mr. Bullock stated that it includes vocational, in addition to all of the standard college credit courses. They are using a proficiency model, which is more of a college approach. There is less classroom time, more teacher interaction in small groups, and more reliance on the student to get things done. Students must demonstrate their understanding of the material in a real-life context. This very different approach is showing dramatic results.



Councilor Weldon asked why the School Board is opposed to this. Mr. Bullock stated that he does not know, but he believes this is worth an independent assessment.

Councilor Rieskamp asked about the venue to obtain information, Mr. Bullock stated that there will be two public meetings, or more if necessary, with the community. The School Board will also hold an official public meeting.

Councilor Rieskamp asked if there was legislative action regarding this concept. Mr. Bullock stated that he understands that there was some legislative action about the ability of for-profit organizations to do school projects, but this is real traditional education, non-profit, and is not online.

There were no further citizen comments.

Mayor Toomb called for a five-minute recess.

PUBLIC HEARING

1) Weirich Drive ROW Vacation (Bender)

Mayor Toomb declared the Public Hearing open at 8:00 p.m.

Utilities and Engineering Manager Grassick briefly reviewed a vacation of a segment of Old Weirich Drive. Staff has determined that the proposed vacation action will not be ready to proceed until the August 10, 2011 Council meeting. He recommends that the public hearing be continued through August, pending resolution of the easement access across the vacated parcel.

Mayor Toomb asked proponents or opponents to come forward. Hearing no comments, he stated that In order to allow more time for the affected property owners to review the proposed vacation, and if there is no objection, the Public Hearing is declared continued until August 10, 2011 at 7:00 p.m.

2) Development Code Text Amendment


City Attorney Kennedy announced that City Council quasi-judicial hearing procedures are posted on the wall in several places. They ensure that everyone has a fair opportunity to present their case and that the Council follows Oregon law. He described the public hearing process and pointed out that all testimony, arguments and evidence brought before Council must be directed toward the criteria staff has indicated or other criteria in the Comprehensive Plan or Land Use Regulations document that the witness believes is relevant to the decision being made. Failure to raise an issue accompanied by statements or evidence sufficient to afford the Council and the parties an opportunity to respond precludes appeal to the Land Use Board of Appeals or to the Linn County Circuit Court based upon that issue. There were no questions.

Mayor Toomb asked Council to declare any ex parte contacts or conflicts of interest. Hearing none, he asked for the staff report.

Community Development Manager Wendolowski presented a request for Comprehensive Plan Map and Zone Map amendments. He stated that with the advent of Western University of Health Sciences, the proximity to the Samaritan Health campus, and the upcoming State VA Home, it creates an excellent opportunity to start attracting bioscience and technology firms. To help foster this type of development, the City wishes to establish an overlay zone that incorporates property in and around the Medical College. This zone will provide guidelines for development and will encourage this type of development in the area. The map can always be amended in the future to take in additional property. Exhibit A lists permitted uses, but since the bioscience field is constantly


evolving, this is written more as a guideline than a constraint. However, the list of permitted uses was reviewed favorably by the Oregon Bioscience Association, of which the City is a member.

Placement of land within the overlay zone does not compel a property owner to establish a bioscience use on the property. As a means to encourage development for bioscience uses, this zone simplifies the process for establishing the project. DLCD and other contacted agencies do not oppose this change. The Planning Commission found that the amendments conform to the City’s Comprehensive Plan policies and are consistent with statewide goals. Staff recommends that the Council approve the proposed Development Code amendments.

Wendolowski confirmed for Councilor Campbell that there are 11 permitted uses listed in Exhibit A, Section C. He also confirmed that nanotechnology is included under "other scientific and technological activities of a similar nature." There are two main goals of the overlay zone – one is to concentrate these types of businesses within this area; the second is to facilitate the process. She commented that this is a very positive thing and feels that Wendolowski and other staff have done good work on this.

Hitt reported that Lebanon was only one of two Oregon cities represented at the recent National Biosciences Association annual convention.

Hearing no comments in favor of or in opposition to the proposed ordinance, Mayor Toomb declared the Public Hearing closed at 8:17 p.m.

Kennedy read the title of Ordinance No. 2822.

Councilor Fisher moved, Councilor Campbell seconded, to APPROVE A BILL FOR AN ORDINANCE AMENDING THE CITY OF LEBANON DEVELOPMENT CODE. The motion passed unanimously by roll call vote.

3) Amending Resolution No. 2010-29 and 2010-37 to Include Surplus of City-Owned Real Property – Airway Road


Kennedy announced that the procedures are still posted on the wall. Since no one entered since he first described hearing procedures, he briefly reviewed the process.

Hitt requested that Council declare seven small parcels along Airway Road as surplus.

Councilor Weldon asked whether the City could just vacate the properties, if the adjoining property owners are not interested in purchasing them. Mayor Toomb pointed out that there is some value to the property. Hitt indicated that amended Exhibit A shows the Assessor's valuation.

Councilor Campbell asked if there are any maintenance issues. Hitt stated that the City does not maintain these parcels in any way.

Hearing no comments in favor of or in opposition to the proposed sale, Mayor Toomb declared the Public Hearing closed at 8:25 p.m.

Kennedy read the title of Resolution No. 28.

Councilor Elliott moved, Councilor Campbell seconded, to APPROVE RESOLUTION NO. 28 AMENDING


EXHIBIT "A" OF CITY OF LEBANON RESOLUTION 29 (2010), AND AS SUBSEQUENTLY BY RESOLUTION 37 (2010), CREATING A PROCEDURE TO SELL A CLASS OF REAL PROPERTY PER ORS 221.727 OWNED BY THE CITY AND DECLARING IT AN EMERGENCY. The motion passed unanimously by roll call vote.

REGULAR SESSION

4) Approval to Award Contract – 2011 Street Preservation Project

Senior Engineer Whitlatch requested that Council pass a motion to award the 2011 Street Preservation Project contract to Knife River, Inc.

Mayor Toomb commented that there is a fairly good savings based on the Engineer's Estimate. Whitlatch stated that staff looked at adding some streets, but decided instead to carry some of the savings forward to do the street work when repairing the sewers.

Councilor Elliott remarked that he is happy to see that work is going to be done on Glenwood because the road is like a rollercoaster. Whitlatch reported that crews will likely be doing some work in the next couple of weeks before the paving.

Councilor Campbell asked if this and previous savings will be consolidated towards the sewer project. Whitlatch stated that the savings from this project will be put towards street work.

Councilor Elliott moved, Councilor Campbell seconded, to AWARD THE 2011 STREET PRESERVATION PROJECT CONTRACT TO KNIFE RIVER, INC. FOR $145,645. The motion passed unanimously by roll call vote.

5) Amending Resolution No. 2011-17 Levying Taxes for FY 2011/12 to Include Delinquent Sewer and Storm Drain Assessments.

Finance Director Baugh requested Council approval of a resolution to reflect delinquent sewer and storm drain assessments.

Kennedy read the title of Resolution No. 27.

Councilor Campbell moved, Councilor Elliott seconded, to APPROVE RESOLUTION NO. 27 AMENDING SECTION 1 OF RESOLUTION NO. 17 (2011 – Levying Taxes FY 2011/12) TO INCLUDE DELINQUENT SEWER ASSESSMENTS. The motion passed unanimously by roll call vote.

6) CH2MHill Water and Wastewater Contract Amendment

Grassick presented CH2MHill's proposed fee increase for operation of the Water and Wastewater Treatment Plants. The increase of 6.35% is primarily due to rising costs of chemicals and electricity. Staffing has been adjusted because of the Wastewater Plant's additional requirements, relative to biosolids handling.

Every year, City and CH2MHill staffs discuss the budget line-by-line to ensure efficiency. City staff also looks at what in-house costs would be. CH2MHill delivers services at a price that consistently matches or is much lower than what our in-house cost would be. He emphasized to Council that this is not an excessive charge.

Councilor Campbell asked Grassick whether he feels that 18% is excessive overhead. Grassick explained that he does not question a company's overhead and profit. He looks at the bottom line keeping in mind what services they provide. At this price, CH2MHill does it for much less than what the City could do it for.


Councilor Campbell felt that the cost of fuel and related petroleum products might also be excessive if it is based on prices above the trend line because prices have also decreased. Grassick explained that a contract clause reads that if the cost trends more/less than 5%, the cost/savings are passed along to the City.

Councilor Rieskamp moved, Councilor Fisher seconded, to accept CH2MHill's rate increase totaling $76,701. The motion passed unanimously by roll call vote.

7) Amending Chapter 5.20 Drug Paraphernalia Sales

Kennedy presented an ordinance that would amend licensing of businesses that sell drug paraphernalia. Because it is hard to prohibit these types of sales, the biggest single enforcement provision would be to limit the presentation to minors. The proposed ordinance restricts exposure by prohibiting sales within 1000 feet of schools and would outlaw the open display or advertisement of drug paraphernalia.

Councilor Elliott asked how much the City is able to charge for a license fee. Kennedy stated that it must be close to what is being charged for similar licenses. If this does not fall under the general category of fees, an amended resolution with the fee amount will be brought back for approval. Baugh reported that the licensing fee is $250.

Councilor Rieskamp asked if this ordinance is consistent with other cities. Kennedy stated this is different than any other ordinance in Oregon. He looked at what would make a difference but could still be realistically enforced with limited manpower. He found some ordinances in California that viewed it from the same standpoint of limiting the presentation to minors.

Kennedy confirmed for Councilor Fisher that if a store does not have a separate room for these items, they will have to eliminate the merchandise.

Councilor Campbell asked whether this will apply to the new store near Chase Bank. Kennedy stated that it would – they would have to exclude minors; it would limit advertisement of their wares outside the establishment.

In response to Councilor Rieskamp's question, Kennedy stated that the separate room can be as small or as big as the store owner wants it to be. Councilor Fisher commented that he would guess that the average establishment sells so little of this paraphernalia that they would rather choose to get rid of the products than give up square footage.

Kennedy confirmed for Councilor Campbell that store owners would be required to have this license, in addition to their existing business license.

Councilor Elliott asked whether the store on Park Street has a permit. Hitt stated that he is unsure, but he felt that it would be best not to discuss specific establishments. If the ordinance is approved, the Police Department will figure out how best to enforce it. Kennedy explained that information will be provided to these businesses so they can decide if they want to apply for this type of license. He added that drug paraphernalia is extensively defined in State Law.

Councilor Rieskamp felt that this would be a good deterrent.

Kennedy read the title of Ordinance No. 2823.

Councilor Fisher moved, Councilor Campbell seconded, to APPROVE A BILL FOR AN ORDINANCE REPLACING CHAPTER 5.20 OF THE LEBANON MUNICIPAL CODE CONCERNING LICENSING OF BUSINESSES THAT SELL DRUG PARAPHERNALIA. The motion passed unanimously by roll call vote.

8) City Attorney Services Contract


Hitt briefly reviewed highlights of the proposed City Attorney Services contract with Morley Thomas Law Firm and John Tré Kennedy. Renewal of the contract, beyond June 30, 2012, would be subject to additional negotiations and Council approval. This contract has also been reviewed by outside counsel, who is in agreement that this is fair and appropriate.

Kennedy confirmed for Councilor Elliott that he is designated as the City Attorney. Rachel MaQatish and Jessie Meyer, who are Deputy City Attorneys, will focus mainly on criminal prosecutions. Hitt noted that those relationships are made clear in the contract.

Councilor Rieskamp moved, Councilor Elliott seconded, to APPROVE THE CITY ATTORNEY SERVICES CONTRACT AS PRESENTED. The motion passed unanimously by roll call vote.

9) Recommend Appointment to Vacant Ward II City Council Seat – Term Expiring December 31, 2012

Councilor Fisher stated that of the six very good applicants who were interviewed, the Committee recommends that Ron Miller be appointed to the vacant Ward II seat.

Councilor Campbell felt that it is an excellent indication that there were so many candidates for the vacancy, since this has not always been the case. Councilors Elliott and Mayor Toomb stated that the candidates were of high-quality. Councilor Fisher shared that he would like to see all of them involved at some level.

Mayor Toomb explained that this is a motion since it is the Committee's unanimous recommendation. Hitt clarified that since this a unanimous recommendation of the Committee, this comes forward as an automatic motion and an automatic second.

The motion passed with 4 yeas (Councilors Campbell, Elliott, Fisher and Rieskamp) and 1 nay (Councilor Weldon) TO APPOINT RON MILLER TO THE VACANT WARD II CITY COUNCIL SEAT.

Mayor Toomb welcomed Ron Miller and announced that he will be sworn in on August 10, 2011.

10) City Manager's Report – Hitt gave a brief report on the following:

Chief of Police – With the recent resignation of Police Chief Thor Dahle, Captain Mike Schulte will serve as the interim Chief. He signed a contract to serve the City possibly through the end of May 2012, granting the City ample time to figure out the most appropriate next step. Please contact Hitt or Chief Schulte with any police-related issues.

City Hall Changes – Engineering, Planning and Building Services staff will be consolidated at City Hall effective July 18, 2011.

Closing of Main Street – Partners for Progress has approached Hitt with an event (Chili Cook-off) that would be held the first weekend in October. They propose closing Main Street from 4-1/2 to 5 hours. ODOT has agreed to the closure as long as certified traffic control people will redirect traffic and put up barricades. He does not feel comfortable making this decision and asked for Council input since they may not feel comfortable with that long of a traffic disruption.

Councilor Fisher commented that the interest level for the Strawberry Festival warrants closing an important street. He suggested closing one or two side streets for the first year to provide a better gauge of public participation and cost.

In response to Councilor Weldon's inquiry, there was no one in the audience representing Partners for Progress.

Councilor Elliott asked about the proposed hours of closure. Hitt stated that he is not sure but he believes it will be from 12:00 p.m. to 4:30 or 5:00 p.m. Councilor Weldon pointed out that this is a busy time of day.

Responding to Councilor Rieskamp's question about location, Allen stated that the original proposal included closing Main Street from Vine to Oak. The idea was to have chili cooking in the businesses in the early morning and then to have people sample them. Councilor Rieskamp stated that they would need food serving licenses issued through the Health Department.

Councilor Rieskamp also felt that this would be a bad time of day. He asked for more information. Hitt stated that he will ask the group to provide a description that he can forward to the Councilors or ask them to make a presentation.

Councilor Campbell stated that she appreciates the work that Partners for Progress does and feels that it is important that, as the City grows, the downtown is not left aside while development occurs at either end of town. She stated that she would like to keep them a vital part of Lebanon with the City open to supporting them. Councilor Rieskamp agreed with Councilor Campbell that the City needs to do all it can to enhance the downtown's ability to survive.

Councilor Fisher expressed his concern about the labor cost of the street closure. He also felt that it might draw more people if traffic is able to drive through town and see the event.

Ms. Garrett shared that she had proposed this event in partnership with the Chamber. She envisioned that the chili tasting would take place at the Farmer's Market location. She agreed with Councilor Fisher that since this is the main road through Lebanon, we would not want to redirect people away from our businesses. She had encouraged a lesser version of the event that would include closing some small streets.

COMP/NW Convocation – Everyone is welcome to the formal dedication/convocation, which will be held on July 30 [2011] from 1:00-4:00 p.m. Hitt urged participation in one of the most important events in the history of Lebanon.

Mayor Toomb reported that there are only 125 medical colleges in the country, so this is a big deal for our community.

New IS Manager – We hope to make a formal employment offer by the end of the week with that individual with a possible start date of August 1 [2011].

Police recruitment is taking place. We are also completing recruitment for a Financial Specialist. Allen announced that there will be a Senior Center Receptionist/Dial-a-Bus position coming open soon.

ITEMS FROM COUNCIL –

Councilor Rieskamp reported on a complaint about the fenced property at Milton Street/Hwy. 20 being a tremendous eyesore to the community. Mayor Toomb advised him to contact Kevin Buchheit who will contact the property owner. Councilor Rieskamp asked why the City has not noticed this. Hitt stated that it has not been staff policy to go out and look for violations, but it is followed up on right away when a complaint is made. Councilor Rieskamp commented that the businesses along the main arterials seem not to take care of their properties as much this year. As we have guests in the community, this will be noticed. Allen stated that she will report this to Buchheit tomorrow.

Councilor Elliott remarked that Buchheit has been really good about following through with complaints.


Councilor Campbell commented on the timeliness of the stop sign replacement at the intersection of Hansard and Reeves Parkway after it had been knocked down.

Councilor Fisher shared a complaint he received about speed limit changes on Oak Street near 2nd Street heading west. It is confusing because the speed limit changes from 25 mph to 35 mph then 25 mph to 35 mph. The citizen requested that it be continuously 25 mph until after the school zone. Hitt reported that he has also heard this complaint. Grassick stated that the school zone speed limit is only in effect when students are present. If it is changed to 25 mph, it will be 24-hour enforcement. Staff will change this if it is what the Council directs.

There was a brief discussion about speed limits on Airport Road.

Responding to Councilor Campbell's request for Police input, Chief Schulte stated that this has been a source of contention for years. She asked him for a recommendation based on experience. Chief Schulte stated that it would be much simpler to enforce if the speed limit is continuously 25 mph through that area.

Hitt stated that staff will bring to Council a proposal to change the speed limits along Oak Street.

Councilor Rieskamp forwarded a complaint that it is difficult to see traffic coming from the left on Market Street at Highway 20. Hitt stated that he did not notice this. There is nothing that the City can do since it is a State highway. Councilor Rieskamp commented that there will be some accidents. Responding to Kennedy's question, Councilor Rieskamp stated that two poles and a switch box are blocking the view for turning right on a red light. Hitt stated that Grassick can call ODOT to see if they are willing to move their equipment.

CITIZEN COMMENTS – There were no citizen comments.

ADJOURNMENT

Mayor Toomb adjourned the meeting at 9:27 p.m.

[Recorded by Ginger Allen / Transcribed by Donna Trippett]

Kenneth I. Toomb, Mayor Bob Elliott, Council President ATTEST: Linda Kaser, City Clerk


LEBANON PUBLIC LIBRARY Advisory Committee Meeting Minutes

June 15, 2011

The Library Advisory Committee meeting was called to order at 5:35 p.m. by Vice Chairperson Sharon Follingstad. Attending were Sharon Follingstad, Kathy Pointer, Judy Smith, Sue Spiker and Library Services Manager Denice Lee. Absent were Cathy Benneth, Garry Browning and Margaret Campbell. Minutes of the May 11, 2011 meeting were unanimously approved. Manager’s Report: Circulation: May 2011 15,606 YTD 2011 176,948

May 2010 14,969 YTD 2010 175,279 Local Authors Program: Tuesday evenings in May at 7 p.m., the library hosted a series of book talks by local authors. The presentations were: May 3, Rosemary Bennett presented “The History of Linn Benton Community College”; on May 10, Teresa Neumann “Bianca’s Vineyard”; May 17th Kathy Brock Boyll presented “Paradise Inherited”; and May 24th Delilah Leach presented “Iron Heart”. Approximately 40 people attended the presentations. The response from those attending was positive. Art Project: The stained glass art installation at the library is completed. There was a brief “unveiling” at 9 a.m. Tuesday, May 17 for library and city committees, City Council and city employees. Two of the donor families were represented at the unveiling. The Friends of the Library provided coffee and cookies. This project was funded by memorial donations. Budget: The City of Lebanon budget for fiscal year 2011-2012 has been presented and approved by the Budget Committee. Final approval was on the agenda for the June 8, 2011 City Council meeting. This year’s budget request is essentially a mirror image of last year’s. The only increases are for personnel, and building and equipment maintenance. Summer Reading Program/Ready to Read Grant: The Summer Reading Program for this year has something for people of all ages. Patrons can pick up a passport at the Library to record reading times. There is a different passport for 4 separate age groups: 0-6 years; 7-11 years; 12-17 years; 18 and up. The reading portion of the Summer Reading Program started June 1 and will continue through August 18. The programming for Summer Reading will take place on Wednesdays at 11 a.m.starting June 22 and continue through July 27. Every first Saturday from June through September at 11 a.m. there will be a bi-lingual story time at the Library. Natalia Cowart will volunteer to lead those events. Also as part of the Summer Reading

Program, staff will read to children in the children’s area every Thursday at 11 a.m. starting June 23 and continuing through July 28. The theme this year is “One World, Many Stories”. Funding for the Summer Reading Program comes from the Ready to Read Grant and the Friends of the Library. Baby Shower: The first baby shower hosted by the library was Wednesday, June 8 at 7 p.m. Parents of new babies born in Lebanon between January and June 2011 were invited to the shower. Each family attending was given a board book. Parents received early literacy information and information about the library as part of the program. Those attending had a great library experience. Staff will be working to increase attendance at the January shower. Head Start: This past school year the library provided outreach programming once a month to 3 Head Start kindergarten classes and one pre-school class. Darcy has taken on this responsibility. Both Head Start and the library are very pleased with the collaboration. We plan to continue this program next year. Early Literacy Computer/Renaissance: To encourage children to continue reading through the summer, the library has purchased an Early Literacy Station from AWE. The self-contained computer has reading, math, science and other areas of study that children can select from. It develops literacy skills using a fun format. Also, the library is seeking to renew the partnership developed with the Lebanon School District and Renaissance. The partnership allows children to continue using the Renaissance read and quiz database used at some area schools by doing their testing on the library’s computers. The results of their testing are stored in the Renaissance database for teachers to access in the Fall. Friends Report: Judy reported that she will be unable to attend the Friends of the Library meetings because of a change in her employment responsibilities. She will send a written notice to Harlan so a replacement can be arranged. Committee members congratulated Judy on her new job and expressed regret that she would no longer be able to represent the Friends. Communications: Sue Spiker reported to the committee on The Gift of Literacy project which took place May 31 at the new medical school. Every first grader in the Lebanon School District was bussed to “college” (COMP Northwest). There they received a new, hardback book, stories and lunch. The school district is partnering with Western University of Health Sciences, the Lebanon Fire Department and the Lebanon Public Library among others. Unfinished Business: The director handed out new policy manuals to those members in attendance. Next meeting the committee will go through page 9 of the manual. The committee discussed briefly the number of members on the committee since the death of Don Thoma and Judy Smith’s inability to serve as the Friends’ representative. Further discussion will take place at our next meeting. New Business: Because of heavy computer use, the library is instituting a “Computer User Only” library card. The card would replace our paper slips generated each morning as part of the morning set up. Anyone wanting to use a computer would have to have either a regular library card or a computer user only library card. The goals are to reduce staff time spent generating the guest passes each morning, eliminate the slips of paper that end up all over the library and the parking lot, and reduce computer use problems requiring extensive staff time. Adjournment: The meeting was adjourned at 6:30 p.m.

Next Meeting: Wednesday, July 13, 2011 @ 5:30 p.m. Lebanon Public Library

853 Main Street Main Street Lebanon, Oregon 97355 541.258.4923 541.258.4955 Fax www.ci.lebanon.or.us

To: Mayor and City Council Date: August 3, 2011

From: Dan Grassick, Manager of Engineering & Utility Services

Subject: Vacation of Weirich Drive Right-of-Way

Request: The attached Ordinance and Right of Way Vacation form is being presented to City Council for consideration and approval after the public hearing is conducted. Background: At its June 8, 2011 meeting, Council approved staff’s request to schedule a public hearing for the vacation of a segment of Weirich Drive right-of-way. This public hearing was originally scheduled for July 13, 2011; however the public hearing was opened and then continued to August 10, 2011. This right-of-way being proposed for vacation has been replaced by the realignment of Weirich Road north of the old alignment and construction of a new intersection with Highway 20. After opening of the new intersection, the old intersection at Highway 20 was permanently closed, and the old Weirich Drive alignment has essentially become an access driveway serving the adjacent properties. Staff will be available to answer questions of the Council.

M E M O R A N D U M

Engineering Division

A BILL FOR AN ORDINANCE VACATING ) ORDINANCE BILL NO. 2011-11 A BILL FOR AN ORDINANCE VACATING ) ORDINANCE BILL NO. 2011-11 A PORTION OF WEIRICH DRIVE ) A PORTION OF WEIRICH DRIVE ) RIGHT OF WAY EAST OF HIGHWAY 20. ) ORDINANCE NO. 2824 RIGHT OF WAY EAST OF HIGHWAY 20. ) ORDINANCE NO. 2824

WHEREAS, the City of Lebanon has initiated vacation proceedings for an area of land being

50.00 feet in equal width being known as Weirich Drive (C.R. 717-A) in the Southwest ¼ of Section 24,

Township 12 South, Range 2 West, of the Willamette Meridian, City of Lebanon, Linn County, Oregon

being more particularly described as follows:

WHEREAS, the City of Lebanon has initiated vacation proceedings for an area of land being

50.00 feet in equal width being known as Weirich Drive (C.R. 717-A) in the Southwest ¼ of Section 24,

Township 12 South, Range 2 West, of the Willamette Meridian, City of Lebanon, Linn County, Oregon

being more particularly described as follows:

Beginning at the intersection of the South line of the Richmond Cheadle DLC No. 69 and the northerly right-of-way of the Oregon Electric Railroad in the Southwest ¼ of Section 24, Township 12 South, Range 2 West, of the Willamette Meridian, Linn County, Oregon; thence South 70°32’08” East 78.63 feet along said railroad right-of-way; thence leaving said right-of-way, South 89°04’31” East 793.27 feet; thence along the arc of a 287.00 foot radius curve to the right, 108.18 feet, (chord bears North 61°22’11” West 107.54 feet); thence North 89°04’31” West 847.14 feet to the said northerly right-of-way of the Oregon Electric Railroad; thence South 70°32’08” East 78.63 feet to the point of beginning.


WHEREAS, the Council for the City of Lebanon has conducted a public hearing on August 10,

2011, having duly considered the testimony of interested persons and the general public; and

WHEREAS, the Council for the City of Lebanon has conducted a public hearing on August 10,

2011, having duly considered the testimony of interested persons and the general public; and

WHEREAS, the City Council finds that notice has been duly given, and WHEREAS, the City Council finds that notice has been duly given, and

WHEREAS, the City Council has determined that the public interests will not be prejudiced by the

vacation of such right of way, and

WHEREAS, the City Council has determined that the public interests will not be prejudiced by the

vacation of such right of way, and

WHEREAS, the City Clerk has filed in the office of the City Clerk a certificate showing that all city

liens and all taxes have been paid on the lands covered by the portion to be vacated;

WHEREAS, the City Clerk has filed in the office of the City Clerk a certificate showing that all city

liens and all taxes have been paid on the lands covered by the portion to be vacated;

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LAfter Recording, Please Return To: City of Lebanon Attn: City Clerk 925 Main Street Lebanon, OR 97355

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Bill No. 2011-11, Ordinance No. 2824 Page 1

NOW, THEREFORE, the people of the City of Lebanon do ordain as follows:

Section 1. A portion of Weirich Drive right of way located east of Highway 20, more particularly

described as follows:


is hereby declared vacated.

Section 2. A public utility and access easement will be preserved over the entire vacated portion

of Weirich Drive for the existing franchise utilities located within the vacated section.

Section 3. A certified copy of this Ordinance vacating the above-described right of way on any

map in regard thereto shall be filed for record with the County Clerk for Linn County.

Section 4. A certified copy of this Ordinance shall be also filed with the County Assessor and the

County Surveyor for the County of Linn.

Adopted by the Lebanon City Council and approved by the Mayor this 10th day of August, 2011

with Yeas and Nays.

CITY OF LEBANON, OREGON Kenneth I. Toomb, Mayor Bob Elliott, Council President Attest: Linda Kaser, City Clerk


RIGHT OF WAY VACATION

KNOW ALL PERSONS BY THESE PRESENTS that a Public right of way was granted to the CITY OF LEBANON, a municipal corporation of the State of Oregon, in Linn County Resolution and Order No. 2011-059, the right of way over and along the full width and length of the premises described as follows; to wit: An area of land being 50.00 feet in equal width being known as Weirich Drive (C.R. 717-A) in the Southwest ¼ of Section 24, Township 12 South, Range 2 West, of the Willamette Meridian, City of Lebanon, Linn County, Oregon being more particularly described as follows: Beginning at the intersection of the South line of the Richmond Cheadle DLC No. 69 and the northerly right-of-way of the Oregon Electric Railroad in the Southwest ¼ of Section 24, Township 12 South, Range 2 West, of the Willamette Meridian, Linn County, Oregon; thence South 70°32’08” East 78.63 feet along said railroad right-of-way; thence leaving said right-of-way, South 89°04’31” East 793.27 feet; thence along the arc of a 287.00 foot radius curve to the right, 108.18 feet, (chord bears North 61°22’11” West 107.54 feet); thence North 89°04’31” West 847.14 feet to the said northerly right-of-way of the Oregon Electric Railroad; thence South 70°32’08” East 78.63 feet to the point of beginning. The City of Lebanon hereby reconveys and releases the right of way described above, it being the intention of the parties to terminate, release, and relinquish all the right, title, and interest of the City in the above-described right of way, except for a public utility and access easement that shall be retained over the vacated section for franchise utilities located within the section. IN WITNESS THEREOF, The City of Lebanon has executed this release this 13th day of July, 2011.

CITY OF LEBANON, OREGON By: Kenneth I. Toomb, Mayor Bob Elliott, Council President By:

STATE OF OREGON ) Linda Kaser, City Clerk ) ss. COUNTY OF LINN ) Before me, on the _____ day of ________________, 2011, personally appeared the above-named and Linda Kaser, who each being duly sworn did say that the former is the Mayor/Council President and the latter is the City Clerk for the City of Lebanon, a Municipal Corporation, and that the seal affixed to the foregoing instrument was signed and sealed on behalf of said corporation, and each of them acknowledged said instrument to be its voluntary act and deed.

A

_______________________________ NOTARY PUBLIC FOR OREGON My Commission Expires: A AFTER RECORDING RETURN TO: City of Lebanon Attn: City Clerk 925 Main Street

Lebanon, OR 97355

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~ MEMORANDUM

CITY oF LEBANON Administration Department It~ easier from here.


From: John Hitt, City Manager}~

Subject: Proposed City Surplus Property- Three (3) lots of the former Project Walden properties, and 120 E. Vine Street

City staff is requesting action by the Council to add four property parcels to the listing of City-owned real property declared surplus and no longer needed by the City.

The first of these, 120 E. Vine Street, was deeded over to the City in lieu of paying an existing lien of $15,411 .91 ($8,570.00 plus interest of $6 ,841.91) from June 18, 2010. This lien was initially imposed to compensate the City for a demolition fee as a result of a hazardous structure declaration.

The Linn County Assessor values this vacant parcel at $29,420. It is estimated that this lot will sell at around $15,000. It is requested that the property be listed for sale at $15,000.

The other three parcels are in the Brewster Road area near or adjacent to the South Santiam River. The parcels are respectively 36.55 acres, 5.80 acres, and 3.31 acres (see attached map).

While these parcels have an assigned Real Market Value of $224,000, $95,360, and $75,000, their true value is actually much lower. This is due to the encumbrance of performing reclamation work as part of an outstanding DOGAMI mining permit. If these properties are not sold, the City will retain the reclamation obligation, estimated to be $275,000 to $500,000.

It is staff's recommendation that the City Council declare these properties surplus, assign a combined value of at least $30,000 or greater, and authorize the City Manager to approve a sale at that price or higher.

JEH/jb

925 Main Street • Lebanon, Oregon 97355 • 541.258.4900 • 541.258.4950 Fax • www.ci. lebanon.or.us

A RESOLUTION AMENDING EXHIBIT “A” OF CITY ) RESOLUTION NO. 2011-29 OF LEBANON RESOLUTION 2011-28, TO INCLUDE ) ADDITIONAL CITY-OWNED SURPLUS PROPERTY ) AND DECLARING IT AN EMERGENCY ) Whereas, after notice and hearing on the 13th of July, 2011, the Lebanon City

Council passed Resolution No. 28 for 2011 which amended Exhibit “A” of Resolution 37 for

2010, which amended Exhibit “A” of Resolution 29 for 2010, which created a program for

the sale of certain real property no longer needed by the City, which real property

constituted a class of City-owned real properties; and

Whereas, City staff has determined that the following property are no longer

needed by the City of Lebanon and should be declared surplus property: Three properties

along Brewster Road and one property at 120 E. Vine Street, more particularly described

as those properties on the Linn County Assessor Map No(s). 12S-2W-11, Tax Lot 100;

12S-2W-12, Tax Lots 1200 and 1300; and 12S-2W-11CB, Tax Lot 7800.

Whereas, the City Council has caused notice to be given and an opportunity for

interested persons to appear and provide testimony concerning the addition of real

properties indentified in Exhibit “A”, attached hereto, and incorporated by this reference,

with such hearing having been conducted on August 10, 2011; and

Whereas, the City Council has determined that there is no further public use for said

identified real properties and that such real properties should be included in the

procedures for the sale of real property as adopted by the City Council in Resolution No.

29 for 2010, and as subsequently amended in Resolutions No. 37 for 2010, and No. 28 for

2011;

Now, therefore, the Lebanon City Council resolves as follows: Section 1. Exhibit “A” of Resolution 2011-28 is hereby amended to include Linn County Assessor Map No(s). 12S-2W-11, Tax Lot 100; 12S-2W-12, Tax Lots 1200 and 1300; and 12S-2W-11CB, Tax Lot 7800, and the same real properties shall be sold pursuant to the procedure adopted in said resolution. Section 2. In all other respects, Resolution No. 2011-28 shall remain in effect. Section 3. This resolution shall be effective immediately upon its passage.

RESOLUTION NO. 2011-29 Page 1 of 3

Passed by the Lebanon City Council and approved by the Mayor this 10th day of August, 2011, with Yeas and Nays. CITY COUNCIL OF LEBANON, OREGON Kenneth I. Toomb, Mayor Bob Elliott, Council President ATTESTED: Linda Kaser, City Clerk



AMENDED EXHIBIT A

SURPLUS PROPERTY

MAP# PARCEL AREA (ACRES) LOCATION ASSESSOR

RMV* 12S-2W-1 1000 10.16 33176 Brewster Rd. $51,800

12S-2W-1 1100 7.17 North of 33176 Brewster Rd. $36,550



12S-2W-22AB 1400 0.41 2774 Birch St. $54,400

12S-2W-10CA 8700 0.08 North of W. Ash $8,300

12S-2W-09DA 1308 5.60 Oak Street - North of Airport Rd. $530,000

12S-2W-23B 7900 0.40 View Lane (Outside City) $39,400

12S-2W-11CC 8300 0.12 “A” Street – West of Williams Street $24,280

12S-2W-11BA 1703 0.25 End of E. Olive St. $3,840

12S-2W-1 700 38.89 Brewster Road (Walden Properties) $25,310

12S-2W-22AB 1600 0.05 Birch Street $6,480

12S-2W-09DA 1310 .02 Airway Road $170

12S-2W-09DA 1311 .02 Airway Road $170

12S-2W-09DA 1312 .04 Airway Road $170

12S-2W-09DA 1314 .02 Airway Road $170

12S-2W-09DA 1315 .03 Airway Road $170

12S-2W-09DA 1318 .02 Airway Road $170

12S-2W-09DA 1319 .02 Airway Road $170

12S-2W-11 100 3.31 Brewster Road $75,000

12S-2W-12 1200 36.55 Brewster Road $224,000

12S-2W-12 1300 5.80 Brewster Road $95,360

12S-2W-11CB 7800 0.06 120 E. Vine Street $29,420

Surplus Properties 07/28/10 Amended 12/08/10 Amended 07/13/11

Amended 08/10/11 * RMV = Real Market Value

Comments:

This map Is for lltfonnational purposes only. TM City ol Leb:mon maluts no representations as to the eccuracy, comp/Mtneu and t~~n•ltndss of the informatKJn ci$played

Approx. Scale 1:7,147 1 in= 596ft

Coordinate System: State Plan!! OR North Horizonta l Datum: NAO !3191 (HARN) Vertical Datum: NAV088 Aerial Photo : March 2005

~ CITY< · LEBAN0!'-1

IJ> t..wr-J.tto

925 S M11in St Leban::m. Oregon

(541} 251- 4885 www.cil.l•blVIon or.us

LINN County Assessor's Summary ReportReal Property Assessment Report

2010July 27, 2011 11:42:36 am

Account #Map #Code - Tax #

Mailing NameAgent

Mailing Address

Prop ClassRMV Class

MA SA NH Unit

Tax StatusAcct StatusSubtype

Deed Reference #Legal Descr

Appraiser

LEBANON, OR 97355

LEBANON CITY OF

00920-18252312S02W11-00-00100 182523

ACTIVENONASSESSABLE

NORMAL

1238-0422 (SOURCE ID: MF1238-0422)See Record

UNKNOWN

940400 03 00000 17297-1

925 S MAIN ST

Sales Date/Price 11-27-2001 / $170,000.00In Care Of

FOR ASSESSMENT YEAR

Situs Address(s) Situs City

Code Area AV RMV RMV Exception CPR %Value Summary

00920Impr.Land

Impr.Land

021,590

075,500

00

Code Area Total 21,590 75,500 0Grand Total 21,590 75,500 0

CodeArea ID# RFD Plan

Zone Value Source TD% LS Size Land Class Irr Class Irr SizeLand Breakdown

Ex00920 1 R Market 97 A 3.31

Grand Total 3.31 0.00Improvement BreakdownCode

Area ID#YrBuilt

StatClass Description TD%

TotalSq. Ft. MS Acct #Ex%

TrendedRMV

0Grand Total 0

***** CAP NOTE - Type J ******************************************EV2002-4: ACTIVE TO EXEMPT TAX STATUS. 1/28/02 JLS.

Comments:

Page 1 of 1


2010July 27, 2011 11:41:04 am


Mailing NameAgent

Mailing Address

Prop ClassRMV Class

MA SA NH Unit



Appraiser

LEBANON, OR 97355

LEBANON CITY OF

00920-19220912S02W12-00-01200 192209

ACTIVENONASSESSABLE

NORMAL


UNKNOWN

940400 03 00000 18227-1

925 S MAIN ST


FOR ASSESSMENT YEAR



00920Impr.Land

Impr.Land

092,250

0224,000

00




Ex00920 1 R Market 97 A 36.55


Area ID#YrBuilt



TrendedRMV

0Grand Total 0


Comments:

Page 1 of 1


2010July 27, 2011 11:41:57 am


Mailing NameAgent

Mailing Address

Prop ClassRMV Class

MA SA NH Unit



Appraiser

LEBANON, OR 97355

LEBANON CITY OF

00920-19221712S02W12-00-01300 192217

ACTIVENONASSESSABLE

NORMAL


UNKNOWN

940400 03 00000 18228-1

925 S MAIN ST


FOR ASSESSMENT YEAR



00920Impr.Land

Impr.Land

034,460

095,360

00




Ex00920 1 R Market 97 A 5.80


Area ID#YrBuilt



TrendedRMV

0Grand Total 0


Comments:

Page 1 of 1

\

Comments:

Approx. Scale 1:600 1 in= 50ft

Coordnllt System: State Plane OR North Horizontal Datum: NAO 83/91 (HARN) Vertical Datum: NAV088 Aerial F>hoto: March 2005

~ CITY"' LEBANO:-l

/I)~,...._ ,..

~ CITY oF LEBANON

It~ easier from here.

NOTICE OF PUBLIC HEARING LEBANON CITY COUNCIL

AUGUST 10,2011 7:00PM

The Lebanon City Council will conduct a public hearing on Wednesday, August 10, 2011, at 7 :00PM, at the Santiam Travel Station, 750 Third Street, to consider amending Resolution 2011-28 -Creating a Procedure to Sell a Class of Real Property, to include as part of Exhibit "A" the real properties located at Linn County Assessor Map No. 12S-02W-12, Tax Lots 1200 & 1300; Map No. 12S-02W-11, Tax Lot 1100; and Map No. 12S-02W-11CB, Tax Lot 7800.

For more information, please contact Jamie Bilyeu at 541-258-4253.

~ MEMORANDUM

CITY oF LEBANON It's easier from here.

Administration Department


From: John Hilt, City Manager~ Subject: Lebanon Skate Park Committee Request

Please see the attached July 16, 2011 letter from the Lebanon Skate Park Committee.

In their letter, they request that the City lease the parcel (adjacent to the Justice Center) recently acquired from the City by the Skate Park Committee.

The purpose of this request is to provide City liability insurance for a temporary skating facility that they hope to open soon.

This item is for discussion only. Staff has no recommendation at this time.

JEH/jb

925 Main Street • Lebanon, Oregon 97355 • 541.25~.4900 • 541.258.4950 Fax • www.ci.lebanon.or.us

853 Main Street Main Street Lebanon, Oregon 97355 541.258.4923 541.258.4955 Fax www.ci.lebanon.or.us

To: Dan Grassick Manager Utility & Engineering Services

Date: August 2, 2011

From: Rob Emmons, Senior Engineer

Subject: NW Natural Franchise Agreement

Background: The Franchise Agreement with NW Natural is scheduled to be renewed every ten years and is currently up for renewal. City staff has been in communication with NW Natural and both agree the franchise agreement only needs minor changes to reflect current accounting practices. The attached proposed Franchise Agreement contains the following changes: Changes the date payment is due from the 20th of the month to the end of the month

(Section 12, paragraph 1). In effect this allows another 10 days for payment to be made.

Removes the requirement that the monthly summary explanation of gross revenue

be accompanied by a sworn statement under oath (Section 12, paragraph 3). The City has the right to audit collections for up to thirty-six months after receipt of

franchise fee payments (Section 13). Removes the requirement for NW Natural to maintain a location within the City for

customers to pay their bills. Recommendation: Staff recommends your approval.

M E M O R A N D U M

Engineering Division

Bill No. 2011-12; Ordinance 2825 Page 1 of 6

A BILL FOR AN ORDINANCE GRANTING A ) ORDINANCE BILL NO. 2011-12 NON-EXCLUSIVE GAS UTILITY FRANCHISE ) TO NORTHWEST NATURAL COMPANY AND ) ORDINANCE NO. 2825 FIXING TERMS, CONDITIONS, AND ) COMPENSATION OF SUCH FRANCHISE )

THE CITY OF LEBANON ORDAINS AS FOLLOWS:

Section 1: Definitions and Explanations (1) As used in this ordinance.

(a) “Bridge” includes a structure erected within the City to facilitate the crossing of a river, stream, ditch, ravine or other place, but does not include a culvert.

(b) “City” means the City of Lebanon and the area within its boundaries, including as

extended in the future.

(c) “Council” means the legislative body of the City.

(d) “Grantee” means the corporate referred to in Section 2 of this ordinance.

(e) “Gas mains” includes all gas transmission and distribution facilities located on or under any street, bridge or public place within the City.

(f) "Person" includes an individual, corporation, association, firm, partnership and joint

stock company.

(g) "Public place" includes any city-owned park, place or grounds within the City that is open to the public but does not include a street or bridge.

(h) “Street” includes a street, alley, avenue, road, boulevard, thoroughfare or public

highway within the City, but does not include a bridge. (2) As used in this ordinance, the singular number may include the plural and the plural

number may include the singular. (3) Unless otherwise specified in this ordinance, any action authorized or required to be taken

by the City may be taken by the Council or by an official or agent designated by the Council.

Section 2: Rights Granted

Subject to the conditions and reservations contained in this ordinance, the City hereby grants to NORTHWEST NATURAL, a corporation, the right, privilege and franchise to:

(1) Construct, maintain and operate a gas utility system within the City. (2) Install, maintain and operate on and under the streets and bridges and public places of the

City, facilities for the transmission and distribution of gas to the City and its inhabitants and to other customers and territory beyond the limits of the City; and

(3) Transmit, distribute and sell gas.

Section 3: Use of Streets, Bridges and Public Places by Grantee (1) Before the Grantee may use or occupy any street, bridge or public place, the Grantee shall

first obtain permission from the City so to do and shall comply with any special conditions the City desires to impose on such use or occupation.

(2) The compensation paid by the Grantee for this franchise includes all compensation for the

use of streets, bridges and public places located within the City as authorized.

Section 4: Duration This franchise is granted for a period of 10 years from and after the effective date of this ordinance. Section 5: Franchise Not Exclusive This franchise is not exclusive, and shall not be construed as a limitation on the City in: (1) Granting rights, privileges and authority to other persons similar to or different from those

granted by this ordinance. (2) Constructing, installing, maintaining or operating any City-owned public utility. Section 6: Public Works and Improvements Not Affected by Franchise The City reserves the right to: (1) Construct , install, maintain and operate any public improvement, work or facility; (2) Do any work that the City may find desirable on, over or under any street, bridge or public

place. (3) Vacate, alter or close any street, bridge, or public place, provided that the City shall make

available to Grantee existing rights-of-way for the location of its facilities. (4) Whenever the City shall excavate or perform any work in any of the present and future

streets, alleys and public places of the City, or shall contract, or issue permits, for such excavation or work where such excavation or work may disturb Grantee's gas mains, pipes and appurtenances, the City shall, in writing, notify Grantee sufficiently in advance of such contemplated excavation or work to enable Grantee to take such measures as may be deemed necessary to protect such gas mains, pipes and appurtenances from damage and possible inconvenience or injury to the public. In any such case, the Grantee, upon request, shall furnish maps or drawings to the City or contractors, as the case may be, showing the approximate location of all its structures in the area involved in such proposed excavation or other work.

(5) Whenever the City shall vacate any street or public place for the convenience or benefit of

any person or governmental agency or instrumentality, Grantee’s rights under this franchise shall be preserved as to any of its facilities then existing in such street or public place.

Section 7: Continuous Service The Grantee shall maintain and operate an adequate system for the distribution of gas in the City. The Grantee shall use due diligence to maintain continuous and uninterrupted 24-hour a day service which shall at all times conform at least to the standards common in the business and to the standards adopted by state authorities and to standards of the City which are not in conflict with those adopted by the state authorities. Under no circumstances shall the Grantee be liable for


an interruption or failure of service caused by act of God, unavoidable accident or other circumstances beyond the control of the Grantee through no fault of its own.

Section 8: Safety Standards and Work Specification (1) The facilities of the Grantee shall at all times be maintained in a safe, substantial and

workmanlike manner. (2) For the purpose of carrying out the provisions of this section, the City may provide such

specifications relating thereto as may be necessary or convenient for public safety or the orderly development of the City. The City may amend and add to such specifications from time to time.

Section 9: Control of Construction The Grantee shall file with the City, maps showing the location of any construction, extension or relocation of its gas mains in the streets of the City and shall obtain from the City approval of the location and plans prior to commencement of the work. The City will require the Grantee to obtain a right-of-way permit and pay applicable fees before commencing the construction, extension or relocation of any of its gas mains.

Section 10: Street Excavations and Restorations (1) Subject to the provisions of this ordinance, the Grantee may make necessary excavations

for the purpose of constructing, installing, maintaining and operating its facilities. Except in emergencies, and in the performance of routine service connections and ordinary maintenance on private property, prior to making an excavation in the traveled portion of any street, bridge or public place, and, when required by the City, in any untraveled portion of any street, bridge, or any public place, the Grantee shall obtain from the City a permit for the proposed excavation and its location. Grantee shall give notice to the City by telephone, electronic data transmittal or other appropriate means prior to the commencement of service or maintenance work and as soon as is practicable after the commencement of work performed under emergency conditions.

(2) When any excavation is made by the Grantee, the Grantee shall promptly restore the

affected portion of the street, bridge or public place to the same condition in which it was prior to the excavation. The restoration shall be in compliance with specifications, requirements and regulations of the City in effect at the time of such restoration. If the City requests that the removal or relocation shall be completed within a reasonable specified time period, Grantee shall complete the removal or relocation within said time period or shall indemnify the City for any costs arising from Grantee’s failure to do so. Grantee shall be responsible for any defect or inadequacy which may develop in such restorations and shall within sixty (60) days after receiving notice from the City of the existence of a defect or inadequacy, make corrections thereto in a manner satisfactory to the City. If the City determines that the defect or inadequacy presents a danger or serious inconvenience to the public or the defect or inadequacy causes or threatens to cause damage to adjacent pavement, utilities, structures, or other improvements, the City may require that the repairs be made or that acceptable temporary measures be taken within 24 working hours of the time of the request. In the event that Grantee fails to make restoration to the affected portion of the street, bridge, or public place to the satisfaction of the City, the City may make the restoration, and cost thereof shall be paid by the Grantee.


Section 11: Location and Relocation of Facilities (1) All facilities of the Grantee shall be placed so that they do not interfere unreasonably with

the use by the City and the public of the streets, bridges and public places and in accordance with any specifications adopted by the City governing the location of facilities. (2) The City may require, in the public interest, the removal or relocation of facilities maintained

by the Grantee in the streets of the City, and the Grantee shall remove and relocate such facilities within a reasonable time after receiving notice so to do from the City. The cost of such removal or relocation of its facilities shall be paid by the Grantee, but when such removal or relocation is required for the convenience or benefit of any person, governmental agency or instrumentality other than the City, Grantee shall be entitled to reimbursement for the reasonable cost thereof from such person, agency or instrumentality. The City shall provide the Grantee with timely notice of any anticipated requirement to remove or relocate its facilities.

Section 12: Compensation (1) As compensation for the privileges granted herein, Grantee, or any affiliate of Grantee,

shall pay to the City an amount equal to five and 94/100 percent (5.94%) of the gross revenue derived from all sources of operations of the system within the Franchise Area allowed by law to be included within the term of gross revenue less related net un-collectables. Gross revenue shall include revenues from the use, rental, or lease of the Grantee’s operating facilities other than residential-type space and water heating equipment. Gross revenues shall not include proceeds from the sale of bonds, mortgage or other evidence of indebtedness, securities or stocks or sales at wholesale by one utility to another when the utility purchasing the service is not the ultimate customer. No expenses, encumbrances, or expenditures shall be deducted from the gross revenue in determining the gross revenue. Accrual of such franchise fee shall commence as of the effective date of this franchise. The compensation required by this section shall be paid each and every month on or before the end of the following month. Any payments not made on or before the date it is due shall accrue interest at the rate of nine percent (9%) per annum until paid. Compensation herein may be subject to annual renegotiations on or before the anniversary date of the term of the franchise granted, and provided the grantee to notified, in writing, at least sixty (60) days prior to the anniversary date.

(2) The Grantee shall furnish to the City with each payment of compensation, required by this

section, a written statement executed by an authorized officer of the Grantee or the officer’s authorized designee, showing the amount of gross revenues of the Grantee within the City for the period covered by the payment computed on the basis set out in subsection (1) of this section. The compensation for the period covered by the statement shall be computed on the basis of the gross revenue so reported. If the Grantee fails to pay the entire amount of compensation due the City through error or otherwise, the difference due the City shall be paid by the Grantee within fifteen (15) days from discovery of the error or determination of the correct amount. Any overpayment to the City through error or otherwise, shall be offset against the next payment due from the Grantee.

(3) Acceptance by the City of any payment due under this section shall not be deemed to be a

waiver by the City of any breach of this franchise occurring prior thereto, nor shall the acceptance by the City of any such payments preclude the City from later establishing that a larger amount was actually due, or from collecting any balance due to the City.



Section 13: Books of Account and Reports The Grantee shall keep accurate books of account at an office in Oregon for the purpose of determining the amounts due to the City under section 12 of this ordinance. The City may inspect the books of account at any time during business hours and may audit the books from time to time. The Council may require periodic reports from the Grantee relating to its operations and revenues within the City. The City shall treat any public record relating to Grantee’s operations or revenues as confidential, subject to the provisions of state law and the Oregon Public Records Law. All amounts of Franchise Fees paid by Grantee shall be subject to audit or financial review by the City, provided that only payments that occurred or should have occurred during a period of thirty-six (36) months prior to the date the City notifies the Grandee of its intent to perform an audit or financial review shall be subject to such audit or financial review. Section 14: Supplying Maps Upon Request The Grantee shall maintain on file, at an office in Oregon, maps and operational data pertaining to its operations in the City. The City may inspect the maps and data at any time during business hours. Upon request of the City, the Grantee shall furnish to the City, without charge and on a current basis, maps showing the location of the gas mains of the Grantee in the City. Section 15: Indemnification The Grantee shall indemnify and save harmless the City and its officers, agents and employees from any and all loss, cost and expense arising from damage to property and/or injury to, or death of, persons due to any wrongful or negligent act or omission of the Grantee, its agents or employees in excising the rights, privileges and franchise hereby granted. Section 16: Assignment of Franchise This franchise shall be binding upon and inure to the benefit of the successors, legal representatives and assigns of the Grantee.

Section 17: Termination of Franchise for Cause

Upon the willful failure of the Grantee, after sixty (60) days notice and demand in writing, to perform promptly and completely each and every term, condition or obligation imposed upon it under or pursuant to this ordinance, the City may terminate this franchise, subject to Grantee’s right to a court review of the reasonableness of such action. Section 18: Remedies Not Exclusive, When Requirement Waived All remedies and penalties under this ordinance, including termination of the franchise, are cumulative, and the recovery or enforcement of one is not a bar to the recovery or enforcement of any other such remedy or penalty. The remedies and penalties contained in this ordinance, including termination of the franchise, are not exclusive and the City reserves the right to enforce the penal provisions of any ordinance or resolution and to avail itself of any and all remedies available at law or in equity. Failure to enforce shall not be construed as a waiver of a breach of any term, condition or obligation imposed upon the Grantee by or pursuant to this ordinance. A specific waiver of a particular breach of any term, condition or obligation imposed upon the Grantee by or pursuant to this ordinance. A specific waiver of a particular breach of any term, condition or obligation imposed upon the Grantee by or pursuant to this ordinance shall not be a waiver of any other or subsequent or future breach of the same or of any other term, condition or obligation , or a waiver of the term, condition or obligation itself


Section 19: Acceptance The Grantee shall, within thirty (30) days from the date this ordinance takes effect, file with the City its written unconditional acceptance of this franchise, and if the Grantee fails so to do, this ordinance shall be void. Adopted by the Lebanon City Council and approved by the Mayor this 10th day of August, 2011, with Yeas and Nays. CITY COUNCIL OF LEBANON, OREGON Kenneth I. Toomb, Mayor Bob Elliott, Council President ATTEST: Linda Kaser, City Clerk

925 Main Street Lebanon, Oregon 97355 541.258.4906 541.258.4955 Fax www.ci.lebanon.or.us

M E M O R A N D U M

Engineering Services

To: Dan Grassick, Manager Utility & Engineering Services Date: August 2, 2011

From: Ron Whitlatch, Senior Engineer

RE: MOTION TO AWARD CONTRACT N. Williams & Industrial Way Waterline and Bridge Abutment Repair Project No. 10708

This memo requests a City Council motion to award the N. Williams & Industrial Way Waterline and Bridge Abutment Repair Project to Emery & Sons Construction Inc. of Salem, Oregon. Background On June 8, 2011 City Council authorized City Staff to advertise the N. Williams & Industrial Way Waterline & Bridge Abutment Repair Project for bids. In June of 2009, the City’s Small Diameter Waterline Replacement Program was eliminated in an effort to cut costs and refocus system maintenance to large diameter main replacement/installation and construction of a new Water Treatment Plant. This year, Staff is recommending that a new 16 Inch waterline be extended along North Williams (from Wheeler Street) and Industrial Way as part of the Water Master Plan goal to provide a large diameter loop around the City. Bids for the project were opened Tuesday, August 2, 2011. There were a total of eight bids received; a comparison of the bids with the Engineer’s Estimate is presented below: Contractor Bid Price Contractor Bid Price Emery & Sons Construction $824,194.50 Kipco, Inc. $906,868.50 I & E Construction $996,042.70 M & M Earthworks $886,680.00 Jim Smith Excavating, Inc. $1,038,167.00 Pacific Contracting Resources $1,066,205.50 K & E Excavating, Inc $938,463.10 Pacific Excavation, Inc. $876,864.50

Engineers Estimate $902,201.97 The lowest responsive bid was submitted by Emery & Sons Construction Inc. of Salem, Oregon. Their bid is approximately 9% below the Engineer’s Estimate. A copy of the Bid Tabulation is available upon request. Recommendation I recommend that City Council pass a motion to award the contract to Emery & Sons Construction, Inc.

~ MEMORANDUM

CITY oF LEBANON 16 easier from here.



From:

Subject:

John Hitt, City Manager ~~ Declared Surplus Proper~ Purchase and Sale Agreement for 2774 Birch Street

On July 28, 201 0, the City Council declared the vacant parcel at 277 4 Birch Street surplus. Since that time it has been actively listed for sale.

While the Tax Assessor's real market value is $54,400, the only offer the City has received was for $10,000. My counteroffer of $12,500 was accepted by the buyers, subject to approval of the City Council.

Separate approval is required since the proposed sales price is less than 60% of the Assessor's RMV.

Staff hereby recommends City Council approval of the Purchase and Sale Agreement dated July 18, 2011 .

JEH/jb

92" Main Street • Lebanon, Oregon 97355 • 541.258.4900 • 541.258.4950 Fax • www.ci.lebanon.or.us

~ ::: . .:::.: !0

I Sale Agreement# (f /( 0 Q j. :Z L/ SELLER'S COUNTER OFFER No. __

This Is a caunter ~~i~r Ia 00 Sa~ Agreement or 0 Buyer's Counter Offer

Seller: ! -f, Buyer. :l> • •• .' f

? _ t1 n LJ

AGREEMENT TO SELL:

a subsequent counrer ol~ Including this Seller's Counler Offer, Where appHcabll!, Boyer acknowledges receipt of signed copies of whlctl Buyer has fu read ond underslal'lds.

Buyer Slgnalure'--1-....L-L.J.L.:~::::.:k;_;;,___.._""'-'=--~---~----- Dale ~a.m. ___p.m.+

Buyer Signature, ____ _____ ________ .::::,. _ _ ___ Date _____ --'---- ___ a.m. __p.m.+

RECEIPT OF EARN~ T Mi>NEY {Use only if amount of me~ money Is modifiEd). Selling Arm acknowledges{ecelpt of earnest money rtom Buyer NOT previously receipted for in the sum of$ evidenced 0 by C3Sh, 0 check.

0 promissory nolo payable on or befOre • which Se!Ung Flrm agrees lo handle as provided In the Agreement Selling Ucensee'sslgnature _ __________________ _ __________ _ _ _ ______ _

Selling Ucensee 2 -,\\ ..LD i) '\be. ~)I I e a; Llstlng Ucensee \?:.i \l.. 't-f<.o\h6 I\ l ~....-.: .P ~ • .!r,:;tQ "~ \. "'-"'~

Selling Firm Broker'slnltJalsiDate, ______ . ~'·----------'UsUng Firm Broker's lniUals!Dale I

LINES 'NJTH THIS SYMBOL~ REQUIRE A SIGNATURE OF BUYER AND/OR SELLER AND DATE

©Oregon Real Es\ale Forms, U.C Rev 01/10 No portion may be reproduced without express permission of Oregon Real Estate Forms, U.C

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Sale Agreement# 8~ P713/l

FINAL AGENCY ACKNOWLEDGMENT

Both auyer and Seller acknowledge having received the Oregon Rear Estate Agency Disclosure Pamphlet, and hereby aclmowladge and consent to lhe

tonowin agency rera!!lYJl}hiP.sjn this nsac1lon: . . . (1} t.L-+/4>0 le,.- ~ ·· · (NameorSellinglicensee)of Jfen~#g/~~ (Name ot Real Estate Firm) Is the agent of (check one): 0 Buyer exclusively ("Buyer Agency"). 0 SeDer exCJ\JSVei; ("Se»er Agency'). ~Both Buyer and

Seller "Disclosed Limhcd Agency"). . _II .L-/ (2) t.-£.+ /LJ, ; (NameofUstingUcensec)of · ·~~ #JV&Rz~~ (Name of Real Estate FIT1ll} ls the a en I of (check one): 0 Seller exclusively ("Seller Agency"). r;gtao;a;;ras;er roisclosed Limited Agency").

(3) If both parties ore each represented by one or more Ucensees ln the same Real Estate Flmn, and Ucensees ore supervised by the same principal broker in

that Real Estate Finn, Buyer and Seller acknowledge that said principal broker shall become the disclosed Kmf1ed agent for both Buyer and Seller as more fuUy explained in the DiscJosed Limited Agency Agreements that hai!C been reviewed and sgned by Buyer, Seller and Llcensee(s).

Buyer shall slgn this acknowledgment at !he time or signing this Agreement before submission lo Seller. Seller shall sign this aclmowledgmenl atlhe time this

Agreement Is first submilted to Seller, even If this Agreement wfll be rcjetted or a counter offer wlll be made. Seller's signature to this Final Agency

Acknowledgment sha!l not illlle acceptance or this Agreement or any terms therein.

Buyer~ ·f)\!1 . Print fV] i+-& ¥-... 1::3£~u=-T7- Dale (')?-14- 1f ~

Buyer Print Date +-

r§.~eF ?XciW'i·'; o.iia·;:.· .-~·· : .. (-

Seller Print Dare ~

This Agreement Is lntonde~ to be a legal ~nd binding contra'ct.

If It Is not understood, soak competent legal advlco bofore signing. Tlmo Is o'f the essence of this Agroomont.

1. DEFINmONS: All references in 1111.s Agrcem~nt to "Licensee• a~d "FI~" shall. refer to Buyer's and Seller's real estate agents llc.en;ed in the Stare l!f

Oregon and ~e respective roalestB!e companJes with whfdJ they are alfiHa!ed. Llccnsee(s} and Ffrm(s) idan!ified in the F!na! Agency Acknawledgmen~ Sedion ~bove aie no! parties to lhfs Agreement, e,.-cepl as may be eXpressly applicable. Unless otheiWiSO pro'Jided herein: {1) Tlme' calttJ!ated in days after

\he dale Buyer and SeUer have signed this Agree!T)!Jnt shaft start on fhe fl(sl tun business day afl.ar the dale of Seller's signature Indicating acceptance of

Buyer's olfer or counteroffer, or Buyer's signature Indicating acx:eplance of Seller's counteroffer; (2) \Mitten notices required or pennllled under this Agreement

Ia be de!illered to Buyer or SeWer may be delivered to lhcir respective Ucensee wilh the same effect as if delivered to that Buyer or Seller; (3) A "business day"

sll~ll mean Monday thmugh Friday, except recoonized legal holidays ;;ts enumerated in ORS 187.010 and 187.020. . .·

2.1 PRICE/PROPERlY DESCRIPTION: Buyer (print name(s)),.---!-~~!o....--u:!-.1--!~r-L.A::=-----------=------

olfen; to purchase from SeDer (prinf name(s))_..I;.~L:jU~::.....C.d274c:&IL.~-------------------Ih8 following described real property (hereinafter 'the Plc erty"J situaled In the Stalo of Oregon, County of _ ___,L,~o~C..A/(...Llk'~V~--------and common!J l<llflwn or ldantlfred as (Insert st el address, city, zip corfe, tax Identification number, Joflb/ock desclip~'on. etc.) ..2776-f . • "' . . t:/7 r> s w. ~

(Buyer and Seller agreo that If Ills not provided herein, a complete l~gal description as provided by the tlUe insurance company in e~tdanca wltll Section 5,

below sha", where necessary, be used for pucposes of legal idenlification and conveyance of UUe.) "--e-forth: Purchase Price Qn U.S. ~cy) or ..... ......... _ ..................... - ............... ·-··--····v~··--·--· ·····---.............. A $~~ @~ ~ on !he following terms: Earnest money herein rec:etpled for ..... ............... a $ S" t:J() -

on , as add!Uonar eemest money, !he sum ct.. .............. C $!iii ¥ t"'~~'~ atorberore Closing, the balance of crown payment ..... _ ..................... D $ . . 49?"12'!57 t{!("O'~ ,.,:::::_ at Closing and upon delivery of I}I..oEEo 0 CONTRACT tho balance of the Purchase Pnce._ . . ......................... ............. E $ .

(Unes 8, C, D and E should equal Lino A}

2.2Balanco ofPurchaso Prfes, (Select A orB)

A. C)( This Is an all cash tranaacUon. Buyer lo provide verification ('Verification") of readily available funds at tlma of submission or lhls Agreement to Seller

or Usling Ucensee. Seller may noUfy Buyer or auyers Licensee, fn wriUng, of Sener's unc:ondiUonal dis;pproval or the Verification within_ business

[ Buyer tniUals fJ2., __ Date1.:f!&l/ j UNES ~TH THIS SYMBOL~ REQUIRE A SIGNATURE OF BUYER AND/OR SELLER AND DATE

~ Ore!lon Real Estate Forms, LLC Rev 01/11 No portion may be reproduced without express permission VACANT lAND REAL ESTATE SALE AGREEMENT- Page 1 of9

~ MEMORANDUM

CITY oF LEBANON Administration Department It's easier from here.


From: John Hitt, City Manager (WUr'--Subject: City of Lebanon HRA VEiJA Trust Agreement

Most of the City's employees will be changing health insurance providers from Teamster's Regence Blue Cross to ODS.

In conjunction with this change, we would like to offer these employees an HRA VEBA trust account. This account can pay for uncovered medical expenses as well as present or future health insurance premiums (see attached sheets, "HRA VEBA Frequently Asked Questions", for more information).

HRA VEBA is an individual account that is managed by each individual employee. The HRA VEBA account is funded each year by the City in an amount that varies with the type and amount of coverage selected by individual employees.

Thus, an employee choosing narrower, high deductible coverage will have more money allocated in his/her HRA VEBA account than an employee who wishes to cover more individuals and/or chooses a policy with lower deductibles.

Staff recommends approval of the prpposed resolution which authorizes entering into the required trust agreements.

JEH/jb

925 Main Street • Lebanon, Oregon 97355 • 541.258.4900 • 541.258.4950 Fax • www.ci.lebanon.or.us

Resolution No. 2011-30 Page 1 of 1

A RESOLUTION AUTHORIZING THE ESTABLISHMENT ) RESOLUTION NO. 2011-30 OF A HEALTH REIMBURSEMENT ARRANGEMENT / ) VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATION ) (“HRA VEBA”) PLAN ) WHEREAS, the Internal Revenue Code Section 501(c)(9) allows for the creation of a voluntary employees’ beneficiary association which is a tax-exempt health and welfare trust; and

WHEREAS, IRS regulations and guidelines allow an employer to offer health reimbursement arrangement (HRA) plans; and

WHEREAS, such HRA plans are available to governmental employers in the Northwest; and

WHEREAS, the Voluntary Employees’ Beneficiary Association for Public Employees in the Northwest Trust (“Trust”) offers and will administer an HRA entitled “Voluntary Employees’ Beneficiary Association Medical Expense Plan for Public Employees in the Northwest” (“Plan”) as amended and restated ; and

WHEREAS, the City of Lebanon (“Employer”) has determined that establishing an HRA plan which provides a tax-free defined contribution account for employees to pay for medical, dental, vision and tax qualified long-term care premiums and non-covered healthcare expenses is in the best interest of the Employer and its employees; and

WHEREAS, the Employer desires to establish an HRA plan for its employees; and

WHEREAS, the Employer desires to use the services of the Trust to administer such Plan; and

WHEREAS, such HRA established by the Employer will be administered in accordance with the Plan documents provided by the Trust on file in the Employer’s main office.

NOW, THEREFORE, the Board of Directors hereby resolves as follows:

Section 1. Effective September 1, 2011 the Employer hereby elects to participate in the Plan and Trust as presently constituted or hereafter amended using the Trust as its plan administrator for the benefit of eligible employees as defined by Employer policies or collective bargaining agreements.

Section 2. The Plan will be funded with Employer contributions in amounts determined from time to time pursuant to Employer policies and collective bargaining agreements.

Section 3. The City Manager or his designee is authorized to execute documents and establish procedures consistent with Plan and Trust provisions and applicable Employer polices and collective bargaining agreements necessary to effect the adoption and administration of the Plan.

Adopted by the Lebanon City Council and approved by the Mayor on this 10th day of August, 2011, with Yeas and Nays. CITY COUNCIL OF LEBANON, OREGON ATTEST: Kenneth I. Toomb, Mayor Bob Elliott, Council President Linda Kaser, City Clerk

HRA VEBA Frequently Asked Questions (FAQ) Prepared by VEBA Service Group, LLC especially for City of Lebanon employees

1. What is HRA VEBA? The HRA VEBA plan is a tax-free health reimbursement arrangement (HRA) for governmental employees in the Northwest. HRA VEBA currently provides benefits to more than 40,000 public employees and retirees from nearly 400 governmental employers in Washington, Oregon, and Idaho.

HRA VEBA Trust is a non-profit, tax-exempt health and welfare benefit trust, which was formed in 1990. HRA VEBA Trust offers the HRA VEBA plan.

2. What is an HRA? An HRA is an account-based health plan funded by your employer. You can use your HRA funds to cover qualified healthcare expenses and premiums for you and your family. Contributions from your employer, investment earnings, and withdrawals (claims) are exempt from state and federal income taxes and FICA taxes.

3. What does "VEBA" stand for? "VEBA" stands for voluntary employees' beneficiary association. VEBAs are a type of trust instrument used to hold plan assets for the purpose of providing employee benefits. VEBAs are authorized by Internal Revenue Code§ 50l{c)(9).

4. How do I benefit from HRA VEBA? HRA VEBA saves you money. You pay zero tax on contributions from your employer, investment earnings, and withdrawals (claims). In other words, the money goes in tax-free, is invested tax-free, and comes out tax-free! You may save up to $300 or more in taxes for every $1,000 contributed by your employer (tax savings are approximate and vary by individual) .

5. How do I get money in my HRA VEBA account? Your HRA VEBA account is funded with contributions from your employer. Typically, such contributions are agreed upon via collective bargaining (for union employees) or defined by employer policy (for non-represented employees). Please speak with your benefits specialist to find out how City of Lebanon may be funding your HRA VEBA account.

6. When can I start filing claims? You may file claims at anytime for expenses you incur on or after your participant effective date.

7. How long does it take to process a claim? Standard claims processing takes up to five business days from the third-party administrator's receipt of your claim, plus two business days to settle the investment fund trade(s) necessary to transfer your requested funds into HRA VEBA Trust's claims account. You may submit your claims via email, fax, or regular mail. Direct deposit of your reimbursements is available and recommended in lieu of waiting for paper checks in the mail.

8. Are my spouse and dependent(s) eligible for benefits?

08-11

Yes. HRA VEBA covers you, your spouse, and eligible dependents, including your young adult children through the end of the calendar year in which they turn age 26.

Continued on reverse -+

HRA VEBA Frequently Asked Questions Page 2 of 2

9. Do I have to use my account right away, or can I let it accumulate from year to year? No. Your unused HRA VEBA account balances carries over from year to year. There is no annual "use-it-or-lose-it" requirement.

10. What types of expenses are eligible for reimbursement? Common qualified expenses include deductibles, co-pays, coinsurance, and prescription drugs. Read the Qualified Expenses & Premiums handout available at www.hraveba.org for a more detailed list.

11. Can I use my HRA VEBA account to reimburse retiree insurance premiums? Yes. Medical, dental, vision, tax-qualified long-term care (subject to IRS annual limits), Medicare Part B, Medicare Part D, and Medicare supplement plan premiums are eligible for reimbursement.

12. What are my investment options? You can select either one of two investment options: Option A: Do-it-yourself or Option B: Choose a pre-mix. With Option A, you can build your own portfolio using funds from seven individual asset classes. Or, with Option B, you can select any one of four professionally designed pre-mixed asset allocation portfolios. More information is contained on the Investment Fund Information brochure and Investment Fund Overview contained in your enrollment kit from your employer or available online at www.hraveba.org.

13. What happens to my HRA VEBA account if I die? If you pass away, remaining funds in your account may continue to be used by your surviving spouse and eligible dependents to reimburse qualified healthcare expenses and insurance premiums. If you have no surviving spouse or dependents, remaining funds (if any) will be forfeited and redistributed per the terms of your employer's plan.

14. What are the fees? HRA VEBA's administrative and operating expenses are paid by a $1.50 per month account fee, plus an annualized, asset-based fee of approximately 1.25%. Expenses include claims processing, printing, postage, legal fees, consulting, local servicing, auditing, etc.

15. Where can I get more information?

08-11

To learn more about HRA VEBA, visit www.hraveba.org or contact your local VEBA Service Group, LLC representative, Dawson Mortimore, at 1-877-695-3945.

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PSE11 (04-11)

3

EMPLOYER ADOPTION AGREEMENT

VEBA TRUST FOR PUBLIC EMPLOYEES IN THE NORTHWEST Provisions:

1. Formal Authorization of Employer. The Employer, by formal action of its governing body or other authorized action, has formally established an employee benefit plan or arrangement pursuant to which it desires to make one or more contributions to the VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATION MEDICAL EXPENSE PLAN (the “Plan” also known as “HRA VEBA”) offered by the VOLUNTARY EMPLOYEES’ BENEFICIARY ASSOCIATION TRUST FOR PUBLIC EMPLOYEES IN THE NORTHWEST (the “Trust”). Through this Employer Adoption Agreement the Employer applies for participation in the Plan and Trust, to be effective if and when accepted by the Trust. Upon such acceptance by the Trust and the funding of any contributions or transfers of assets from a prior qualified plan into the Trust, the Employer shall be considered to be a sponsor of the Plan with respect to its employees and shall have adopted and become subject to the provisions of the Plan and Trust. The Employer acknowledges that it understands and agrees that: (a) Neither the Plan, the Trust, nor the Plan/Trust’s auditor performs audit work or otherwise examines to assure that any contribution from the Employer to the Trust is in accordance with the Employer’s plan or arrangement and that this determination is the sole responsibility of the Employer; (b) In the event the Employer’s plan or arrangement for contributions is determined by the IRS to permit individual employee elections and thereby results in taxable income to affected employees, the Employer shall hold harmless and indemnify the Plan, Trust, and their agents for liability which may result therefrom.

2. Employer Plan Design Selection. Pursuant to collective bargaining agreements, other written

agreements, or Employer benefits policies, whichever is applicable, the Employer hereby elects the following options under the Plan:

(a) Participant Accounts. [check one only, unless Employer is establishing more than one

type of Participant Account(1)]

Commencement of Benefits shall be as directed below by Employer or, for Employees whose assets have been transferred by Employer from a prior plan, Employer may additionally direct in writing that the commencement of Benefits shall coincide with the

(1) In almost all cases Employer will select only one Participant Account option which will apply to all Participant Accounts established by said Employer. However, more than one option may be selected if an Employer wants to (1) establish more than one type of Participant Account per Employee; or (2) establish different types of Participant Accounts across multiple Employee groups. Example 1—Employer wants to establish two types of Participant Accounts per employee: one that permits in-service and post-separation benefits and is 100% vested, and one that permits post-separation benefits only subject to vesting. Example 2—Employer wants to establish different types of Participant Accounts for certain Employee groups. For Employee group A, Employer wants to establish Participant Accounts that permit post-separation benefits only subject to vesting. For Employee group B, Employer wants to establish Participant Accounts that permit in-service and post-separation benefits and are 100% vested. If Employer selects more than one Participant Account option, language must be attached which clearly describes, by Employee group, which type(s) of Participant Account(s) are to be established for each eligible Participant.

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PSE11 (04-11)

Adoption Agreement –continued

Employee’s benefits eligibility date under the prior plan, provided the Employee becomes a Participant as defined by Section 1.3.12 of the Plan.

(i) [ ] In-service and post-separation coverage; 100% vested. Participants shall

immediately be eligible to file claims for qualified expenses and premiums incurred anytime after a Participant Account is established with respect to such Employee.

or

(ii) [ ] Post-separation coverage only; 100% vested. Participants shall be eligible to file claims for qualified expenses and premiums incurred after separation from service. Employer must notify the Third-party Administrator of such Employees’ separation dates by submitting a completed Participant Status Change Form.

or

(iii) [ ] In-service and post-separation coverage; subject to vesting. Participants shall be eligible to file claims for qualified expenses and premiums incurred while in-service and post-separation after having met any vesting requirements. Employer must notify the Third-party Administrator of such Employees’ claims eligibility dates, separation dates, and/or vested account percentages by submitting a completed Participant Status Change Form.

or

(iv) [ ] Post-separation coverage only; subject to vesting. Participants shall be eligible to file claims for qualified expenses and premiums incurred post-separation and after having met any vesting requirements. Employer must notify the Third-party Administrator of such Employees’ separation dates and vested account percentages by submitting a completed Participant Status Change Form.

(b) Forfeitures. [check one only] If the balance credited to any Participant Account is forfeited because the Participant fails to satisfy the vesting requirements for such Participant Account, if any, or is forfeited as a result of a deceased Participant having no surviving spouse or Dependents as described in Section 5.2 of the Plan, the forfeited amount will be reallocated as follows:

(i) [ ] Reallocate an equal amount to all Participant Accounts from this Employer that have a positive balance at the time of the reallocation.

or

(ii) [ ] Reallocate to an Employer Account established pursuant to paragraph 2(c), to

be applied as subsequently directed by the Employer. Option 2(c)(ii) must be checked if this option is selected.

of 11

PSE11 (04-11)

Adoption Agreement –continued

(c) Employer Account. [check one only]

An Employer Account can be used to hold assets to offset other post-employment benefits, such as OPEB liabilities as defined by Governmental Accounting Standards Board Statement No. 45 (GASB 45) accounting rules. An Employer Account can also be established for the purpose of accepting Participant Account forfeitures due to a Participant’s death or failure to meet vesting requirements, if any.

(i) [ ] Employer is not establishing any Employer Account.

or

(ii) [ ] Employer is establishing one or more Employer Accounts.

IN WITNESS WHEREOF, the Employer has approved this Employer Adoption Agreement, as evidenced by the signature below of its authorized officer, to be effective when accepted by signature below on behalf of HRA VEBA Trust. Employer Name: By:

Authorized signature Printed name Title Date Accepted by HRA VEBA Trust: VEBA Service Group, LLC on behalf of the Voluntary Employees’ Beneficiary Association Trust for Public Employees in the Northwest. By: Mark Wilkerson, CFP®

Manager

Authorized signature Date

~ MEMORANDUM

CI1YoF LEBANON It} easier from here.


To: Mayor and City Council

From: John Hitt, City Manager

Subject: City Manager's Report

Date: August 2, 2011

At the August 10, 2011 City Council meeting, I will provide a brief oral update on the following:

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';> COMP-NW Opening

-, FY 2010/11 End of Year Financial Report

-y Introduction

-y "Prime Industrial Site" Designation

~ Proposed City Hall Operating Hours

~ Miscellaneous

925 Main Street • Lebanon, Oregon 97355 • 541.258.4900 • 541.258.4950 Fax • www.ci.lebanon.or.us

lebanon city council meeting · city council meeting august 10, 2011 – 7:00 pm (santiam travel...

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