MINUTES WASHINGTON COUNTY BOARD OF COMMISSIONERS DECEMBER 17, 2013
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1 MINUTES WASHINGTON COUNTY BOARD OF COMMISSIONERS DECEMBER 17, 2013 CONVENED: 6:33 p.m. BOARD OF COMMISSIONERS: Chair Andy Duyck Vice Chair Greg Malinowski Commissioner Dick Schouten Commissioner Roy Rogers Commissioner Bob Terry STAFF: Robert Davis, County Administrator Sia Lindstrom, Sr. Deputy County Administrator Jonathan Schlueter, Government Affairs Manager Alan Rappleyea, County Counsel Steve Franks, Assistant Director, LUT Paul Schaefer, Senior Planner, LUT Val Valfre, Director, Housing Services Bill Gaffi, General Manager, CWS Nora Curtis, CWS Jerry Linder, Chief Legal Counsel, CWS Jim Thiessen, Audiovisual Technician Barbara Hejtmanek, Recording Secretary PRESS: Simina Mistrenanu, The Oregonian 1. ORAL COMMUNICATION (2 MINUTE) Doug Lund, Commander, Veterans Foreign Wars Post 2666, stated that his Post covers areas of Gaston, Forest Grove, Banks, North Plains, Cornelius, Hillsboro, Aloha and western Beaverton. He said that his Post decided it was important to pass a Resolution in support of building the Veterans Plaza using Gain Share Funds. Mr. Lund then read the Resolution into the record. (Resolution may be found in the Meeting File.)
2 Chair Duyck appreciated the Resolution because there still seems to be a misunderstanding by the public relative to whether or not this is a supported endeavor. He regarded this statement of support as important to the County as a whole. Mr. Lund wished his Post could do more. He was aware that the American Legion has passed a similar Resolution. David Nardone, 6714 NE Copper Beech Drive, Hillsboro, Oregon, said that he read a letter printed in the Hillsboro Argus entitled Washington County Commissioner Draws a Line on Obama Care. He believed that it is fair to blame the state for its incompetence, oversight and management of the Cover Oregon roll-out. However, Mr. Nardone stated that Oracle, a prominent and successful private sector billion dollar corporation, should also be held responsible for this failure. He said that the Commissioner asserted that Obama Care has driven up government operating costs. Mr. Nardone disagreed. He reported that Medicare, Medicaid and the VA (government-sponsored health care programs) outperformed the private sector in restraining costs. Mr. Nardone said that the Commissioner also asserts that 40 percent of new hires are in the government sector. He stated that his reading has led him to believe that federal, state and local governments have down-sized over the last three years. Mr. Nardone noted that during the recession, the private sector has not created jobs but said he cares more about jobs created than who creates them. He asked the Board not to draw a line on Obama Care but to embrace the good and fix the bad. Mr. Nardone said that Commissioners Terry and Schouten, who have functioned as liaisons with the Advisory Council on Disability, Aging and Veteran Services, are aware of the success that the County has had in collaborating with state and federal government agencies to serve the vulnerable. He requested them to continue this work. John Leeper, former Washington County Commissioner, wished the Board a Merry Christmas and Happy New Year. He spoke in support of the effort that has been expended to assure that money from Gain Share is made available to the Veterans Memorial, adjacent to the County Fairgrounds. Mr. Leeper regarded this as a good expenditure of public funds. He identified himself as a member of the American Legion Post in Beaverton. Although this subject has not come before his Post, Mr. Leeper was sure they would wholeheartedly support it. Mr. Leeper stated his belief that the County should avail itself of the maximum allowable money that can be collected for the maintenance of roads and bridges. He was concerned to hear that the Board may go to the public with a figure in the range of $30, whereas the legislation allows up to $43. Mr. Leeper said that the $30 will take care of the roads but will not take care of bridges. He noted that a bridge is much more expensive to maintain and/or replace than a road. Mr. Leeper suggested that the Board give serious thought to going for the full $43.
3 2. CONSENT AGENDA Chair Duyck announced the following modifications to the Consent Agenda: An off docket item from Clean Services entitled Direct Clean Water Services Legal Counsel to Draft and File an Ordinance Establishing Procedures for Forming Reimbursement Districts and Reimbursing a Portion of Construction Costs for Sanitary and Storm and Surface Water System Improvements; Repeals Ordinance 36; and Declares an Emergency is added to the Consent Agenda. (CWS MO 13-87) Item 2.d. is pulled from today s agenda and is anticipated to return at a future time (no date certain). It was moved to adopt the Consent Agenda, as amended. Motion Rogers 2 nd Terry APPROVAL OF MINUTES: November 26, 2013 CLEAN WATER SERVICES 2.a. CWS MO Accept Construction of Durham Wastewater Treatment Facility Odor Control System Improvements Phase 1 Project No and Release Retainage to McClure & Sons, Inc. (CPO 5) (Approved Under Consent Agenda) 2.b. CWS MO Approve Modification to First Amendment to Master Contract for Professional Services with AKS Engineering & Forestry, LLC for the Material Processing Yard Improvement Project No (All CPOs) (Approved Under Consent Agenda) LAND USE AND TRANSPORTATION 2.c. MO Amend Contract/Increase Expenditure Authority for Traffic Count Services (All CPOs) (Approved Under Consent Agenda)
4 2.d. MO Approve Tri-Party Development Agreement for Funding and Construction of Public Improvements on or Adjacent to NW Cornelius Pass Road (CPO 7, 8, 9) (Removed From Agenda) 2.e. MO Consider an Urban Growth Boundary Minor Adjustment for ET Environmental, LLC ( MA) (CPO 12F) (Approved Under Consent Agenda) 2.f. RO Accept Additional Oregon Department of Transportation Funding and to Increase FY 2013/14 Budget Appropriations for Land Use & Transportation, Long Range Planning (Approved Under Consent Agenda) 2.g. RO Approve Establishment of a Road Maintenance Local Improvement District (MLID) for Crosshaven (CPO 7) (Approved Under Consent Agenda) HOUSING SERVICES 2.h. MO Approve the FY 2012 COC Program Grant Agreement, COC Planning Project HUD #OR016410E (All CPOs) (Approved Under Consent Agenda) SHERIFF S OFFICE 2.i. MO Accept State Homeland Security Program Grant Funding (Approved Under Consent Agenda) SUPPORT SERVICES 2.j. RO Adopt Revised Procurement Rules (Approved Under Consent Agenda)
5 2.k. MO Accept Bid/Award Contract for Fire Alarm & Sprinkler Testing Services ( b) (Approved Under Consent Agenda) 2.l. RO Amend the Washington County Pay Plan to Adjust the Salary for the Undersheriff Classification (Approved Under Consent Agenda) SERVICE DISTRICT FOR LIGHTING NO. 1-A COUNTY SERVICE DISTRICT 2.m. SDL RO Form Assessment Area, Authorize Maximum Annual Assessment and Impose a First Year Assessment for Butner Rd Partition (CPO 1) (Approved Under Consent Agenda) 2.n. SDL RO Form Assessment Area, Authorize Maximum Annual Assessment and Impose a First Year Assessment for Crosshaven (CPO 7) (Approved Under Consent Agenda) 3. BOARDS AND COMMISSIONS 3.a. MO Appointments to the Cultural Coalition of Washington County It was moved to appoint to a second term Lesly Sanocki and appoint Anne Noall, Teresa Smith and Elaine Worden to first terms on the Cultural Coalition of Washington County. All terms will begin 1/2/2014 and end 12/31/2016. Motion Schouten 2 nd Malinowski 3.b. MO Appoint Members to the Homeless Plan Advisory Committee (HPAC) (All CPOs) It was moved to renew the following HPAC appointments for terms ending December 31, 2016: Pat Garrett and Karen Shawcross; appoint Marland Henderson to the Mayor or City Councilor; Carol Herron to the Faith Community; and Trudy Arnold to Citizen At
6 Large positions with three year terms ending December 31, 2016; Lai-Lani Ovalles to the Philanthropy with term ending December 31, 2014; and Samira Godil to Hospital/Health Care and Steve Berger to Community Corrections with terms ending December 31, Motion Schouten 2 nd Terry 3.c. MO Appoint Members to the Planning Commission (All CPOs) It was moved to appoint Matt Wellner (District 4) to a term ending January 31, 2015; to appoint Anthony Mills (District 1) and Eric Urstadt (District 4) to terms starting February 1, 2014 and ending January 31, Motion Terry 2 nd Rogers Commissioner Schouten corrected a typographical error in the packet, wherein Matt Wellner was listed in District 1 rather than 4. Chair Duyck asked staff to clarify if the District refers to where the person lives or the district which they will represent. Robert Davis stated that it refers to the district they will represent. The Board directed that the error be corrected to read District 4. 3.d. MO Appointments to the Northwest Area Commission on Transportation (NWACT) It was moved to re-appoint the two citizen-at-large representatives from Washington County: Mike Borresen to a term ending December 31, 2014 Lori Godfrey to a term ending December 31, 2015 Affirm the appointments from City of Banks to fill the large city position: Councilor Christy Greagor as the voting member Mayor Peter Edison and City Manager Jolynn Becker as the alternate members
7 Motion Rogers 2 nd Schouten 4. PUBLIC HEARINGS CLEAN WATER SERVICES 4.a. CWS RO Hold a Public Hearing and Adopt the Resolution and Order Establishing the Regional Stormwater Management Charge Methodology (All CPOs) The Board decided to hear items 4.a. and 4.b. together since they are inter-related. Nora Curtis stated that Clean Water Services proposed Ordinance 40 A-Engrossed describes the rates and fees for use of and discharge to the District s storm and surface water management system, including the monthly surface water management charge. She said that Ordinance 40 A-Engrossed also establishes a new fee the Regional Stormwater Management Charge (RSMC). Ms. Curtis stated that the RSMC is a onetime charge imposed on all new development creating impervious surface and discharging to a publicly-funded regional stormwater approach project. She explained that the RSMC reimburses the District for funds used to implement the regional stormwater approach projects. Ms. Curtis stated that the RSMC would be authorized under Ordinance 40 A-Engrossed, which is scheduled for a third reading and second public hearing today. Based on the Board s action on the Clean Water Services off docket item (which was approved under the Consent Agenda), which directed preparation of a reimbursement district ordinance, Ms. Curtis recommended holding this public hearing and then continuing action on this item and also on the adoption of Ordinance 40 A-Engrossed to January 21, She stated that this will allow adoption of Ordinance 40 A-Engrossed, adoption of the RSMC methodology and adoption of the reimbursement district ordinance to be considered at the same time. The public hearing was opened. No public testimony was offered. It was moved to continue the public hearing to January 21, Motion Rogers 2 nd Malinowski
8 4.b. CWS MO Conduct Third Reading and Second Public Hearing of Ordinance 40 an Ordinance Prescribing Charges, Rates and Fees for Use of and Discharge to the Clean Water Services Storm and Surface Water Management System and Adopt Ordinance 40 A- Engrossed There was a motion to read proposed Ordinance 40 A-Engrossed by title only. Motion Terry 2 nd Malinowski Jerry Linder read the proposed ordinance by title. Nora Curtis informed the Board that the same recommendation stands: hold the public hearing and then continue action to January 21, The public hearing was opened. No public testimony was provided. It was moved to continue the public hearing to January 21, Motion Terry 2 nd Malinowski 5. ACTION COUNTY COUNSEL 5.a. MO Authorization to File an Ordinance Amending Washington County Code Chapter 9.12 to Expand the Sheriff s Office Authority to Inspect any Closed Containers in the Possession of an Arrestee if that Closed Container will be Transported in a County Vehicle or Stored in a County Facility to Locate Toxic, Explosive, Hazardous or Flammable Materials (All CPOs) It was moved to authorize the filing of the ordinance. Motion Rogers 2 nd Terry Commissioner Schouten asked for clarification of the department s requested action.
9 Alan Rappleyea responded that this action just starts the process. He said that staff will bring this back for a reading and public hearing. OFF DOCKET COUNTY ADMINISTRATIVE OFFICE Mo Allocate Gain Share Small Projects Opportunity Funds to County Museum and Aloha Library It was moved to allocate fiscal year Gain Share funds to the County Museum in the amount of $150,000 and to the Aloha Community Library Association in the amount of $100,000 contingent upon the fund raising efforts of each organization, as noted in the agenda item. Motion Terry 2 nd Malinowski 6. ORAL COMMUNICATION (5 MINUTE) Joe Rayhawk, NW Germantown Road, Portland, Oregon, wished to speak on several topics in an effort to provide the Commissioners with insights to help make important decisions. (Written submittal may be found in the Meeting File.) He clarified that the audience should not interpret any Board comments as agreement with him. Mr. Rayhawk recalled discussion last month relative to what to do with $12 million in Gain Share funds. He noted that a Consent Agenda item today, which was removed, commits $16 million for widening Cornelius Pass Road, which is needed for Intel s D1X expansion. Mr. Rayhawk stated that the $12 million in Gain Share funds is more than offset by the $16 million needed for the road. Mr. Rayhawk reviewed testimony he provided at an earlier meeting that schools in Bethany are the most over-crowded in the Beaverton School District. He added that they are also the best schools. Mr. Rayhawk said that in 2009/10, MSTIP funds were used to improve Saltzman, Cornell and Murray roads. He stated that the engineer report mentioned that the improvements would help traffic but would probably fail by the end of 2012, due to increased traffic from expected home construction. Mr. Rayhawk maintained that they actually began to fail by early He realized that due to the recession, adult children were moving back in with their parents north of Cornell but they still had jobs and were commuting at rush hour. Mr. Rayhawk said that these adult children often have school-age children themselves, which contributes to school overcrowding. He stated that apartments surround the schools, which are filled with parents who want their children to go to good schools. Mr. Rayhawk identified an early North
10 Bethany project as having 240 apartments; he believed these will get more families with children than expected. He went on to say that the new houses in North Bethany and along Laidlaw will also get more than the average students per house. Mr. Rayhawk turned to the topic of water shortages. He stated that the Oregonian reported that through 2012, Intel was using water equivalent to 10,800 homes. Mr. Rayhawk said that recently, Chair Duyck and Congresswoman Bonamici had a photo opportunity in front of a local dam to discuss the potential for water shortages in the County. He stated that a large fab uses four million gallons of water per day while the average home uses between 150 and 300 gallons per day. Mr. Rayhawk said that using the 300 figure, a large fab will use the equivalent of 13,000+ homes. He stated that Intel s D1X is at least a large fab and there will be a second whole fab in a few years. Mr. Rayhawk said that these will use more water than 25,000 homes. He stated that the D1 fabs are really big likely the biggest in the world and may use as much as 50,000 homes. Mr. Rayhawk said that Clean Water Services has built a new reservoir at Glencoe and Evergreen. He hoped that Intel will pay for much of that, one way or the other. Mr. Rayhawk wondered if we are going to run out of water and not be able to build North Bethany, West Bull Mountain, South Cooper Mountain and South Hillsboro. He questioned if we will have to spend millions to bring in water from the Willamette and elsewhere. Mr. Rayhawk asked who will pay for this and further wanted to know if it will be citizens whose water supply is being used by Intel. The key point Mr. Rayhawk wanted to make tonight is that Intel cannot and will not risk trying to move their fab development group out of Oregon. He estimated that this may be the most important point he has ever made to the Board in terms of the future of Washington County. Mr. Rayhawk said that Intel currently avoids $171 million in taxes due to the current SIP deal and makes about $12 billion in profit. He stated that Intel makes that profit because they have a one or two year lead in fab processing due to having the best team in the world here. Mr. Rayhawk claimed that Intel cannot replicate that team anywhere else in the world and probably cannot move that team. He said that if Intel did try to move it, they would probably lose a year or two and suddenly become equivalent to many of their competitors. Mr. Rayhawk did not believe, therefore, that Intel would move. He added that the drop in profit and projected growth would decimate Intel s stock price. Mr. Rayhawk stated that all Intel executives have compensation from the stock and will not risk their net worth. He said that Intel is building both new production labs in the same place and therefore putting all eggs in one basket. Mr. Rayhawk doubted that Intel can get water and/or building permits in California, Arizona or New Mexico and so are doing it here. He said that since the Governor signed a deal with Intel to avoid income taxes, they will want to stay here. Mr. Rayhawk stated that if the County stands firm, it may eventually cost Intel about $200 million per year in taxes, which is trivial compared to the $12 billion in profit they stand to risk if they try to move. He said that the County may not feel it can risk Intel deciding to leave but he submitted that the County cannot afford the status quo. Mr. Rayhawk concluded that the County does not have to grant Intel any kind of SIP in the future.
11 Chair Duyck informed Mr. Rayhawk that this issue is on the minds of a lot of people throughout the County. He felt the best way to illustrate this topic is to ask the public, including Mr. Rayhawk, if they are willing to give up the tax break exemption on all of the personal property in their homes. Chair Duyck explained that Intel only gets a partial exemption on their personal property. He said the issue is the same: are citizens willing to give up the same exemption that they are accusing Intel of getting. Mr. Rayhawk replied that when he ran a company in Washington County, he did not get an exemption on the property that was used in his business. He stated that he does get a discount on his property because it is a farm. Mr. Rayhawk admitted that this discount is substantial half the taxes. He did not know that he would be happy to give that up. This was the Chair s point. He stated that as a farm, Mr. Rayhawk has an agricultural exemption and if he was in timber, he would have a timber exemption. Chair Duyck said that as an individual, each person who owns his own home has a complete exemption on home furnishings. He stated that we are getting that exemption and yet we begrudge Intel an exemption, when Intel pays on the first $100 million of personal property. Chair Duyck pointed out that this is a substantial amount of taxes that Intel pays. Mr. Rayhawk stated that the ODA study from 2010 showed that farm land in the County pays more than it uses in services. He said that the total income tax paid by Intel, the property tax paid by Intel and the income and property taxes paid by Intel s employees do not cover the cost to provide roads and schools to the employees. Mr. Rayhawk was not now talking about the $16 million he mentioned earlier. He stated that Intel gets a substantial value that it does not help to pay for and somebody is going to pay for that. Mr. Rayhawk said that we are not going to be able to raise taxes on Nike and Intel for income. He stated that in order to recover, the County will have to increase taxes. Chair Duyck realized that he and Mr. Rayhawk are going to have to disagree. He could not accept that Intel does not pay its way. Chair Duyck pointed out that if Intel does not, then any country in the world would not be clamoring to get companies like Intel to move there. He explained that it is because they know that it is a huge boon and that it actually lowers personal taxes that citizens have to pay. Mr. Rayhawk did not think that is true. 7. BOARD ANNOUNCEMENTS Chair Duyck wished everyone a Merry Christmas and Happy Holidays. He announced that the next Board meeting will be on January 7, Chair Duyck indicated that on that date, Work Session will begin at 8:30 a.m. and Regular Board Meeting at 10:00 a.m.
12 8. ADJOURNMENT: 7:05 p.m. Motion Terry 2 nd Schouten MINUTES APPROVED THIS DAY 2014 RECORDING SECRETARY CHAIRMAN
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