City Council - 04 Apr 2017

If special accommodations for hearing, visual, or manual impairment are needed to allow an individual to participate, or if in interpreter is needed, please contact the City's administrative office at 541-966-0201 at least 48 hours in advance of the meeting.

CITY COUNCIL AGENDA

CITY OF PENDLETON

April 4, 2017 at 7:00 PM

CITY HALL COUNCIL CHAMBERS

1. COMMUNITY DISCUSSION This is the time designated for any person to ask questions or make statements before the City Council on any matter regarding City Business that is not on the agenda.

2. CALL TO ORDER a. Introduction of Guests b. Presentation of proclamation to Altrusa of Pendleton. c. Presentation of proclamation for National Service Recognition Day.

3. CONSENT AGENDA a. Accept the minutes of the March 21, 2017 City Council meeting. b. Executive Session pursuant to ORS 192.660(2)(i) To review and evaluate the

chief executive officer of the City. c. Resolution No. 2684 - Update to Fee Schedule

4. NEW BUSINESS a. Approval for the contract to upgrade Full Court software, Staff report, and

recommendation. b. Immediate Opportunity Fund Agreement with Hill Meat, Staff report, and

recommendation. c. Preliminary consideration of vacating a pedestrian/utility easement,

Staff report, and recommendation.

5. CITY MANAGER REPORT Information only a. Memo from Public Works Director b. City Manager Report

6. OTHER BUSINESS

7. ADJOURNMENT

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CITY OF PENDLETONOfficeofthe Mayor

500 S.W. Dorion AvenuePendleton, Oregon 97801P R 0 A 0 N Telephone (541) 966-0310

FAX (541) 966-0201

A PROCLAMATIONFROM THEMAYOR

Whereas, Altrusa was established on April 11, 191 7; and

Whereas, Altrusa International nowboasts 8190 members in the U.Sand seven other countries; and

Whereas, the motto "Patriotism, E?iciency, Service” and the tagline ”Leading to a better community"speak to the commitment ofservice locally and abroad; and

Whereas, Altrusa ofPendleton has supportednumerouscommunityprojects such as Pendleton RiverParkway and BedfordBridge, Rudy Rada Skate Park, Heritage Station Museum expansion, Community IceRink, McCune Youth Center; and -

Whereas, Altrusa ofPendleton was awardedthe Pendleton’ Chamber ofCommerce President's award in201 6for the excellence in volunteeringand ?nancialsupport to community events and businesses withinour community; and

Whereas, Altrusa ofPendleton providesassistance fornon-traditional students atBMCC,classroom grantsand supplies to local schools, scholarship awards, book giveaways, weekend foodfor236 students eachweek, emergency fundsforPHS and BMCCstudents; and;

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Whereas, Altrusa ofPendleton has hosted the Altrusa District Twelve Conferencein 1968, 1994 and 2007and will host the Altrusa District Twelve Conferencein 2019; and

Whereas, Altrusa International is celebrating 100 years ofservice in the United States.

NOW, THEREFORE,1,john H. Turner, Mayor ofthe City ofPendleton, do hereby proclaim

April 11, 2017As

“Altrusa Day"

in Pendleton and encourage all citizensto work to make a good investment in Pendleton.

IN WITNESS WHEREOF, I have hereunto set my hand this 8”’ day ofApriI in the year ofour Lordtwo thousand and seventeen and caused the seal ofthe City ofPendleton to be a?ixed.

g@£../5/kit/L/</mi‘-m

john H. TurnerMayor ofPendleton

Home of the World Famous Pendleton Round—UpPage 3 of 69

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CITY OF PENDLETONOfficeof the Mayor

500 S.W. Dorion AvenuePendleton, Oregon 97801Telephone (541) 966-03 10

_ _ _FAX (541) 966-0201

WHEREAS, service to others is a hallmark of the American character, and central to how we meet our

challenges, and the nation's cities are increasingly turning to national service and volunteerism as a cost-

effective strategy to meet their needs; and

WHEREAS, AmeriCorps and Senior Corps participants address the most pressing challenges facing our

communities, from educating students for the jobs of the 21st century and supporting veterans and

military families to providing health services and helping communities recover from natural disasters;

and

WHEREAS, national service expands economic opportunity by creating more sustainable, resilient

communities and providing education, career skills, and leadership abilities for those who serve, and

also increase the impact of the organizations they serve, both through their direct service and by

managing millions of additional volunteers; and

WHEREAS, AmeriCorps and Senior Corps participants serve in more than 50,000 locations across the

country, bolstering the civic, neighborhood,and faith-based organizations that are so vital to our

economic and social well-being; and

WHEREAS, national service represents a unique public—privatepartnership that invests in community

solutions and leverages non-federal resources to strengthen community impact and increase the return

on taxpayer dollars; and

WHEREAS, national service participants demonstrate commitment, dedication, and patriotism by

making a signi?cant commitment to service; and

WHEREAS, the Corporation for National and Community Service shares a priority with county officials

and mayors nationwide to engage citizens, improve lives, and strengthen communities; and is joining

with the National League of Cities, National Association of Counties, Cities of Service, and mayors and

county officials across the country for the Mayor and County Recognition Day for National Service.

THEREFORE, BE IT RESOLVEDthat I, JohnH. Turner, Mayor of the City of Pendleton, do hereby

proclaimApril 4, 2017, as National Service Recognition Day, and encourage residents to recognize the

positive impact of national service in our county; to thank those who serve; and to ?nd ways to give

back to their communities.

Further, on behalf of the City of Pendleton, I wish to recognize CouncilorJohnBrenne for his dedication

to these programsby serving as the Project Director since 1975.

t/~Dated Ed3YOf 7.

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alyorJohnH. Turner

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Home of the World Famous Pendleton Round—UpPage 5 of 69

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Page 1 – March 21, 2017 City Council Minutes

CITY COUNCIL AGENDACITY OF PENDLETON

CITY HALL COUNCIL CHAMBERSMARCH 21, 2017

A regular meeting of the Pendleton City Council was held in the City Hall Council Chambers at 7:00 p.m., March 21, 2017, with Mayor Turner presiding. Members in attendance were: Fairley, McDonald, Brown, Brenne, Marks, Cambier and Primmer. EXCUSED: Chalmers. Staff members present were: Corbett, Kerns, Byram, Brown, Patterson, Penninger, Smith, D. Cook, L. Cook, Denight, and Allman. Representing the media was A. Sierra, East Oregonian.

REX MOREHOUSE SPOKE IN REGARDS TO FIRE BONDRex Morehouse, 217 NW 9th, said the "fact sheet" put out by the Fire department is not accurate and asked if it had been corrected. He said he voiced his concerns at the previous City Council meeting.

Mayor Turner clarified the intent is to explain the net increase.

Mr. Morehouse repeated that the fact sheet is misleading and is not correct. He went on to quote the minutes from June 14, 2014: "This equates to about $0.68 per $1,000 assessed property value rate at the end of December 2013 being continued for another 20-year bond. This will fund about $9 million to $10 million in improvements, based on interest rates of 3.5% to 4.5%." He also asked about the $10 million and the funding for maintenance, noting this is not listed on the fact sheet.

Mayor Turner said he has looked at the documents and the figures are correct.

Mr. Morehouse added JC Penney is closing, Lincare, PGG, Cummins Diesel, Colby Pipe and Radio Shack have closed or are scheduling to close down, and asked what are we going to do about economic development. He said millions of dollars have been spent on Main Street and asked how many jobs have been created?

Neil Brown responded the City hasn’t put millions of dollar in the downtown or the airport. Thousands of dollars have been spent. There are some things the City has no control over.

“MODEL” STATE AND LOCAL LAW ENFORCEMENT IMMIGRATION POLICIESMs. Shaindel Beers, 622 NW 9th Street, she gave Council a copy of the nine “model” state and local law enforcement immigration policies and rules. She encouraged Council to adopt the model. Mayor Turner said it would be referred to staff and revisited at a later date.

CONSENT AGENDAMr. Fairley moved to adopt the consent agenda as presented.City Council minutes for March 7, 2017Executive session pursuant to ORS 192.660(2)e real property; and ORS 192.660 (2)(h) litigation.AJ’s Little Café OLCC license.

Ms. Marks seconded the motion and it passed 7-0. EXCUSED: Chalmers

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COMMUNITY BANK BUILDING PURCHASEMr. Corbett gave the staff report recommending Council authorize City to purchase a building at 1906 NW 56th Drive, also known as the old Power Vision Building at the Eastern Oregon Regional Airport Industrial Park to support current and future customers from Community Bank for $395,000.

The City of Pendleton is experiencing a large increase in business associated with the Pendleton UAS Test Range. This has stretched our ability to provide appropriate rental space for UAS customers.

The State of Oregon gave us a grant to construct a hanger and other associated support facilities and equipment. The hanger and other facilities have been leased and/or will be leased.

One item necessary to meet the needs of our customers is access to a range control facility on the airport. This facility monitors, controls, and obtains information from UAS aircraft flying on the range and is leased at a per day rate. Equipment will be paid for with the remaining grant funds obtained by State. The City has commitments for lease of the range control facility that equal $88,000 to date and we expect more. The control facility has value to other users and is expected to draw revenue for the forseeable future that can be used toward the purchase of or to offset the purchase of the building.

In anticipation of these needs staff has negotiated the purchase of the “Power Vision” building from Community Bank. This building was previously owned by the City and was sold as part of a lease/purchase agreement entered into on April 5, 2005.

City would relocate the UAS Range Manager from the terminal building to this building. He would oversee construction of the range control facility. The building has office equipment.

Terms and source of revenue to complete the sale will be provided at the Council meeting or when they have been finalized by the City Manager. Operating costs would be paid for by the revenue generated from the building.

Mr. Abling was also available to answer questions.

City Council had a discussion on logistics of the building.

Mr. Fairley moved to authorize City to purchase a building from Community Bank for $395,000 at 1906 NW 56th Drive, also known as the old Power Vision Building at the Eastern Oregon Regional Airport Industrial Park to support current and future customers. Mr. Brenne seconded the motion and it passed 7-0. EXCUSED: Chalmers.

Mr. Corbett updated Council on safety at the airport. The safety issues have been addressed and resolved. The Airport Commission discussed whether the pad should be leased or a public pad. It was decided to be a lease. All parties have met and are moving forward.

Mr. Brenne asked what the impact will be if the airport subsidy is discontinued.

Mr. Corbett said they don’t know the answer but staff feels it is important.

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Ms. Marks thanked staff and the commission for finding a solution to the problems. As a result there can be UAS and Ag support at the airport.

Mr. Jeff Lourden thanked council for supporting UAS, he feels the purchase of the building is key. He is looking forward to reporting back to the companies that space is available.

NUISANCE HEARING FOR JOHN SULLIVANMr. Brown recused himself for personal reasons.

City Attorney Kerns gave the staff report recommending Council determine that the materials stored at the 1521 SE Alexander Pl. are a nuisance, require the property owner to abate the nuisance and direct the City Manager to abate the nuisance if the property owner fails to do so.

1. Violations: Ordinance 3845 (the Development Code) prohibits, in a residential zone, vehicles, trailers, etc., which are unlicensed to be stored on private property unless enclosed within a building. In this case the property owner keeps several vehicles on their premises that are inoperable and unlicensed. See photos attached.

Ordinance 3848, the Nuisance Ordinance, Section 21 prohibits the property owner or person in charge of real property from keeping solid waste on private property which is “injurious or offensive substances or any type of solid waste, which mars the appearance, creates a stench or detracts from the cleanliness or safety of such property.” In this case the property owner also keeps, in additional to the vehicles, miscellaneous vehicle auto body parts, fencing sections, old siding and various other types of solid waste. See photos attached.

2. Nuisance Abatement: After being notified to remove the nuisance condition from property, the property owner may file a protest of the nuisance, which is referred to the City Council. “The Council shall thereupon determine whether or not a nuisance in fact exists and such determination shall be entered in the official minutes… If the Council determines that a nuisance does in fact exist, the owner or other person shall within five days after the Council determination to abate the nuisance.” (Section 27) If the property owner does not abate the nuisance within the required time, the City Manager may cause abatement, to be done at the property owner’s expense. In this case the property owner was notified to remove the nuisances on March 8, 2017. The property owner has filed a protest for determination by the City Council of whether the condition of the property constitutes a nuisance. The Council must review the state of the property and declare whether or not a nuisance exists.

Upon finding a nuisance by the Council, the property owner has 5 days to abate the condition. If property owner fails to do so, then the City Manager may abate the nuisance and lien the real property for the expense.

SUGGESTED ACTION FOR COUNCIL TO TAKE:(1) Determine whether or not the vehicles constitute a nuisance.(2) Determine whether the other materials constitute a nuisance.(3) If nuisance is declared, require the property owner to abate the nuisance within the 5 days,

which is required by Section 27A.D. of the ordinance.(4) Direct the City Manager to proceed with abatement if the nuisance continues to exist after

March 27, 2017 (5+ days).

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Ms. Etchamendy, Code Enforcement Officer, reported to Council on the Solid Waste Violation.

Mr. Sullivan said he has 4 vehicles that don’t run; others that do run. His plan is to work on the vehicles when he retires. His property is double fenced. He has extra fence panels that he collects to help others to put up fences to keep their pets safe. He doesn’t want to have the code officer driving to look at other properties. He feels this ordinance is ludicrous. If they aren’t broken what is the issue. He knows there are some things that need to be moved but not everything. His property is zoned residential. Mr. Sullivan gave a handout to the Council.

Mayor Turner said they aren’t going to change the Ordinance tonight. Council is only addressing the Solid Waste Violation.

Mr. Fairley asked Mr. Sullivan if there is anything he can do to address the cleanliness of the site.

Mr. Sullivan said he takes offense at cleanliness. He doesn’t know where it stems from the property he owns. He can’t afford to license and insure the property for 15 vehicles. He is willing to do things. He asked for 45 days. Everything he has on his property as a contractor he is allowed to have.

Ms. McDonald asked if he built a shelter if it would resolve the problem. Ms. Etchamendy said as long as he follows the Zoning Ordinance, he can put in a closed shop.

Mayor Turner read the definition of Solid Waste.

Mr. Sullivan said he is not trying to be difficult; he is just trying to find a solution.

Mr. Fairley said if the vehicles are operable they aren’t considered solid waste.

Mr. Sullivan said he has four inoperable vehicles.

Mr. Fairley asked what the definition of “other materials” is. Ms. Etchamendy said it is the items in the pictures.

Mr. Turner said the boat in the picture constitutes a nuisance.

Mr. Fairley moved to make a determination that the materials stored at the 1521 SE Alexander Place constitute a nuisance and that the property owner be allowed 45 days from March 22, 2017 to abate the nuisance. Motion was seconded by Ms. Marks, and passed 5-1. OPPOSED: Brenne, ABSTAIN: Brown, EXCUSED: Chalmers.

Mr. Sullivan said he will start relocating the solid waste.

PENDLETON ENHANCEMENT PROJECT SUPPORT FOR REUSE OF 8TH STREET BRIDGE COMPONENTS Bob Patterson gave the staff report recommending Council approve city support for reuse of 8th Street Bridge components for the Pendleton Enhancement Project.

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This approval assumes all non-eligible 8th Street Bridge Project expenses are assumed by the Pendleton Enhancement Project with the Pendleton Downtown Association, 501(c)(3) organization, acting as the fiscal agent for the Pendleton Enhancement Project.

City staff, State Historic Preservation Office (SHPO) staff, and Oregon Department of Transportation (ODOT) Region 5 staff are working on a Memorandum of Agreement (MOA) with Federal Highway Administration (FHWA) for mitigating the reuse of the original bridge. In order for the 8th Street Bridge Project to move forward, mitigation, or reuse, of the existing bridge must be identified and included in the FHWA MOA. The project cannot be let (or bid) until this MOA is secured, along with an additional permit (awaiting the MOA).

Pendleton Enhancement Project (PEP) is the official name of a community organization working on reuse of certain components from the original 8th Street Bridge. These components are shown in the attached renderings. To date, PEP has secured a cost estimate for reconstruction of these components at a site owned by Union Pacific Railroad (UPRR) on South Main Street. This estimate is about $102,000 and includes some costs that may be borne by the actual bridge project (removal of the truss). PEP has pledges for $50,000 from a private citizen(s), $20,000 from Umatilla County, and will be asking for $20,000 from Pendleton Development Commission at the 6 pm, March 21, 2017 PDC meeting.

City staff recommends City Council support of PEP for this pursuit and that they bear the relocation costs the 8th Street Bridge Project won’t cover for full relocation and assembly of the necessary components. One of the considerations is still UPRR approval for the PEP site.

With Council approval, City staff will present a future draft Resolution with more details outlining the obligations to grant the necessary components of the existing bridge to the PEP and PDA. This will be contingent on the use of the UPRR property.

With Council approval, City staff will be able to convey a commitment to SHPO and ODOT for reuse of the bridge and continue to push forward on the FHWA MOA.

8th Street Bridge Project has committed funding. Costs have been developed and will be included to remove the existing bridge and scrap materials not intended for reuse. Costs associated for actual reuse of the bridge are to be borne by the interested party.

Ms. Marks moved Council approve city support for reuse of 8th Street Bridge components for the Pendleton Enhancement Project. Motion was seconded by Mr. Primmer and passed 7-0. EXCUSED: Chalmers.

STATE REVOLVING FUND LOAN APPROVAL FOR $14,855,000 FOR WATER SYSTEM IMPROVEMENTSMr. Patterson gave the staff report recommending City Council adopt Resolution 2683 to authorize entering into a financing contract with the Oregon Business Development Department for a loan of $14,855,000 (with $1,015,000 eligible for principle forgiveness).

In December 2015, City approved and implemented a series of water rate increases to assist with financing the adopted 2015 Water System Master Plan list of capital improvement projects and aging infrastructure.

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In mid-February, staff presented the loan request and scope of work to the Business Oregon Infrastructure Finance Authority Board and the Oregon Health Authority Drinking Water Advisory Committee (IFA Presentation made available to Council and public). The Board and the Committee both approved the project for funding. This is the largest SDWSRLF award ever granted. The IFA Board acknowledged the award amount was due to our readiness and the large pool of state revolving loan funds available.

Staff is prepared to provide the same presentation at Council’s request.

This resolution and the legal counsel opinion are requirements for loan consideration. With council approval, loan documents will follow for Mayor’s execution.

Water Fund has funds available for the debt service payment. Loan amount is $14,855,000 at 1.41% for 30-years. With $1,015,000 in principle forgiveness, the debt service will be about $570,000 per year. The original Master Plan financial recommendation was based on $11,300,000 at 5% for 20-years for $906,750 per year. The difference in debt service is over $335,000 per year and the local match of about $3,500,000 is further extended to address aging infrastructure issues.

Mr. Brenne moved City Council adopt Resolution 2683 to authorize entering into a financing contract with the Oregon Business Development Department for a loan of $14,855,000 (with $1,015,000 eligible for principle forgiveness). Motion was seconded by Mr. Fairley, and passed 7-0.

PURCHASE OF OPERATIONS MANAGEMENT SYSTEM SOFTWARE FROM CARTEGRAPHMr. Fairley declared a potential conflict. He reported that Mr. Cook, employed by Public Works, is his son. He will not receive any financial gain from vote, just wanted Council and public to be notified.

Mr. Patterson gave the staff report recommending City Council authorize staff to enter into a 3-year agreement with Cartegraph for purchase of an Operations Management System software with Year 1 cost not to exceed $50,519.

Approval for City Manager to approve Year 2 and Year 3 pricing not to exceed $25,985.

Contract language with Cartegraph is presently being negotiated based on the attached Software and Services Quote. If unsuccessful in addressing a few key points with our legal counsel, staff recommends consideration of Lucity OMS software as a second choice and Aktivov OMS software as a third choice for further negotiations.

Staff will provide a 15 to 20 minute presentation on the functionality of this proposed OMS software. Please see attached Cartegraph Profile for basis of the presentation.

Pricing structure contained in attached Cartegraph Quote:

Year 1: $50,519: includes Water, Sewer, Facilities domains; advanced asset management subscription (local administration); 10 Cartegraph users; 10 ESRI ArcGIS users; Cartegraph cloud based hosting, and initial implementation fees.

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Year 2: $21,119: includes same domains and advanced asset management subscription; 15 Cartegraph users; no ESRI ArcGIS (first year only – direct ESRI purchase in Year 2); and Cartegraph cloud based hosting.

Year 3: $21,119: includes same domains and advanced asset management subscription; 15 Cartegraph users; no ESRI ArcGIS (first year only – direct ESRI purchase in Year 3); and Cartegraph cloud based hosting.

Note: Staff’s goal is to implement OMS software at a pace to be successful for all levels of the city. Implementation of software and use may grow quicker or slower than the estimated projections for Year 2 and Year 3. Cost for “all” Cartegraph domains and 21 to 50 users would bring annual pricing to a maximum consideration of $25,985 for Year 2 and/or Year 3.

Note: ESRI ArcGIS Online is included in Year 1 pricing and requires separate purchase in Year 2 and Year 3. Cartegraph OMS software requires licensing from ESRI for GIS field editing purposes. Present ESRI Arc GIS costs are $2,500 per 5 users. Implementation of Cartegraph will require ongoing use of ESRI ArcGIS Online. Year 2 and Year 3 are presently projected for 15 users for $7,500/annually. This will be a separate purchase and may change depending on how quickly the Cartegraph OMS software is developed.

City staff has been working on a comprehensive work order system for city-wide application throughout this fiscal year. Staff began with thirteen OMS providers. This list was shortened to three providers, Aktivov, Cartegraph, and Lucity, that met staff’s criteria for a comprehensive city-wide application. This criteria is found in the OMS Software Report and included: Spatial Geographical Information System (GIS) integration; editable inventory with barcode scanning capability; public works and city-wide application capability; in the field access by all devices and front line employees; ability to integrate with Tyler software; ability to integrate with Supervisory Control and Data Acquisition (SCADA) software; generating reports; generating work orders; managing vertical assets (building footprints and equipment within), and manage linear assets (valves, manholes, gravestones, streets, runways, lighting, etc.).

Once these three software providers were determined, staff invited them for on-site demonstrations with front line employees and managers from various departments. Staff then conducted user phone interviews and solicited initial pricing structures from the top three software providers.

Staff then conducted on-site visits at Wilsonville, Oregon City, and Clackamas County. The overall summary of this investigation is found in the attached OMS Software Report.

The following is an excerpt of the conclusion from OMS Software Report:

City staff has learned and absorbed much information through this comprehensive selection process. Based on the ten selection criteria (shown on page 5), staff was able to reduce a list of thirteen Operations Management System (OMS) providers down to three finalist (shown on page 6) that have a product to provide comprehensive city-wide application. Finalists were Aktivov, Cartegraph, and Lucity.

On-site demonstrations were held with all three finalists at the Pendleton Convention Center. Invitations to public works, parks, facilities, and airport staff were provided. These demonstrations provided front line employees and managers the opportunity to use their

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products, run scenarios for asset management, discuss options and applications, interact with the representative, and provide feedback to public works staff for selection consideration.

The on-site demonstrations were followed by reference checks from utilities using their products in the Pacific Northwest. Based on reference checks and initial pricing information, staff pursued and performed three on-site visits with two finalists: - Wilsonville regarding Cartegraph;- Oregon City regarding Lucity; and- Clackamas County regarding Lucity.

Summary of comments received at these on-site visits assisted city staff with a final recommendation consideration. Primary comment was to have dedicated staff for OMS, Geographical Information System (GIS), and purchasing in order to make full use of the OMS application. The cities visited did not have themselves resourced at this level – all mentioned that they would like to be so they could make more use of the tools provided by their OMS. Secondary comment was to have the ability for staff to perform assigned editing to GIS from the OMS, by-passing entry by the GIS staff. Of the two finalists, only Cartegraph has this capability at this time. Lucity allows the GIS to be edited by dedicated GIS staff, but not by front line employees; thus, work orders have to flow through GIS staff in order to update overall GIS. Thirdly, the Operations Manager at Oregon City has worked with both OMS. He conveyed that you want the editing capability by front line staff that Cartegraph has to offer over Lucity. He highly recommended Cartegraph and conveyed that we would be much happier with the OMS, even though it will cost more due to the ArcGIS licensing component.

After completing this process in search for a comprehensive Operations Management System (OMS) incorporating work order, inventory, and spatial editing capabilities for city-wide application, city staff recommends Cartegraph as the best overall solution to our short-term and long-term needs.

Public Works funding is available for this purchase for the entirety of the 3-year contract. Funding will be split from water and sewer enterprise funds. Future budget considerations will be determined by City Manager as other departments are added to using OMS software.

After a brief discussion on the software Council decided to purchase the software.

Mr. Cambier moved City Council authorize staff to enter into a 3-year agreement with Cartegraph for purchase of an Operations Management System software with Year 1 cost not to exceed $50,519, and approval for City Manager to approve Year 2 and Year 3 pricing not to exceed $25,985. The motion was seconded by Mr. Fairley and passed 7-0. ABSENT: Chalmers.

CITY MANAGERS REPORTMr. Corbett announced Grant consultants to be here April 12th. They will update Council and staff regarding grant opportunities and lobbying opportunities.

He said he has been meeting with Department Heads and his goal is to have the budget done by April 1.

He and staff had a meeting regarding the Vert Collection with Vert ladies and TCI regarding the collection and its history.

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Mr. Corbett also announced they are working on policies for Purchasing (P) cards. Departments in the past have used credit cards, but it isn’t effectively serving all departments. City departments will be trained on using a new purchasing card system.

Tutuilla Dispensary, letter to the Planning Commission.

There being no further business to come before the City Council, the meeting was adjourned.

Approved by:

__________________________City Recorder

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C I T Y O F P E N D L E T O N

REQUEST FOR CITY COUNCIL ACTION

Date Submitted: Type of Action Requested: Subject:3/21/17 ResolutionDate Action Requested: Ordinance4/4/17 Formal Action/MotionAttachments: (list) Resolution No. 2684

Other

Resolution No. 2684 to update the fees in the Administration, Taxi and Public Works sections of the Fee Schedule

TO: Mayor and City CouncilFROM: Andrea Denton, Administrative Services Officer

RECOMMENDATION: To approve Resolution No. 2684 to update the City’s Fee Schedule.

DISCUSSION: The Fee Schedule is a compilation of all the fees of the City of Pendleton. The full Fee Schedule is on the City website at: http://www.pendleton.or.us. The fees that are proposed to be updated in this resolution include:

Lien Search Fee The Lien Search fee in the Administrative Fees section is proposed for a $5.00 increase from the original $20 fee, which has never been updated.

Taxi Fares The mileage and “wait time” fees in the Taxi Fares section have not been updated in over a decade, and proposed increases are meant to reflect standard statewide taxi fares.

Street Maintenance Utility Fee charges were implemented in December 2015 under Resolution 2628 based on meter equivalent. Staff recently completed an inventory of residential and commercial water meter service as part of the Geographical Information System database development to help confirm actual meter sizes for each meter service. Residential meter services range in size from 0.75-inch up to 2-inch services. This is generally tied to the amount of area to be irrigated and does not necessarily reflect the size of home or number of vehicles using local streets. Also, there are residential customers only using sewer service and do not receive water service. In the interests of better consistency in applying residential charges to all utility customers, staff recommends that Council approve that “all residential utility customers will only be charged the 0.75-inch meter equivalent fee.” April 1, 2017: 0.75-inch charge is $5.15 per utility customer.

Temporary Service using fire hydrants for each construction project is recommended to increase 1.5 times the current charge for hydrant connection and relocation fee to better reflect the cost of overall service for the hydrant meter and staff time in providing and

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http://www.pendleton.or.us/sites/pendleton.or.us/files/File/administration/fee_schedule/15-Fee%20Schedule.pdf

setting up temporary construction service. April 1, 2017: Fire hydrant connection would be $823.80 per season and relocation would be $114.50.

Water Fill Stations set-up charge for select sites at well and booster stations throughout the city’s distribution is recommended to be decreased by 75% to encourage contractor’s to make better use fill stations instead of fire hydrant temporary service. Staff originally recommended the set-up charge to assist recouping the original investment to plumb the fill stations at the select sites. Staff believes more contractors will use the fill stations by reducing the set-up charge. Once set-up, contractors are charged the 0.75-inch base charge plus volumetric and billed monthly. April 1, 2017: Water fill station set-up would be $72.20.

FISCAL IMPACT: The lien search and taxi fare fees do not generate very much revenue, so the impact of raising the fees is thought to be nominal, and done more to reflect the actual cost associated with the service than to generate revenue.

Public Works: Street Maintenance Utility Fee has generated about $394,500 based only on a $5/month charge. April 1, 2017 will implement the meter equivalent charges to all commercial and industrial utility accounts. Expected annual revenue is estimated at about $480,000 using the meter equivalent charges.

Fire hydrant and Water fill stations will have a slight impact on overall Water Fund revenues.

ALTERNATIVES: Do not modify the fees; or amend to different rates.

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Page 1

RESOLUTION NO. 2684

WHEREAS, The City of Pendleton charges fees for certain taxi services; and

WHEREAS, these fees are intended to aid in partial recovery of costs associated with providing said services; and

WHEREAS, The City of Pendleton charges a fee to conduct lien searches, which fee has never been adjusted; and

WHEREAS, Oregon Revised Statutes permit the City to recover a fee reasonably calculated to reimburse the City for the City’s actual cost of making public records available; and

WHERAS, Clarification is desired on the Street Maintenance Utility Fee that applies to residential utility customers; a fee increase for temporary service using fire hydrants for construction projects is recommended; and a fee reduction is being requested to the Water Fill Station fees to encourage contractors to make better use of the service; and

WHEREAS, The City has an obligation to use the public’s resources as contemplated by the City budget process and to not use general resources for the benefit of individuals.

NOW THEREFORE, the City of Pendleton resolves to adopt the attached revised schedule reasonably calculated to reimburse the City for making services and public records available.

This resolution is effective upon passage.

PASSED by the City Council and approved by the Mayor April 4, 2017.

APPROVED:

_________________________________John H. TurnerMayor

ATTEST: ___________________________________ Andrea F. DentonCity Recorder

Approved as to form:

_________________________________Nancy KernsCity Attorney

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Page 2

PROPOSED FEESAdministration

PRODUCT OR SERVICE FEE1. Photocopy fees

Single or double sided, Black-and-white or color, letter, legal or 11 x 17$0.25 per page

2. Bound or Large Documents: Budget CIP Audit Ordinance Compilation (Code) Sections

$10 per document if more than 25 pages

$5 per document if less than 25 pages or less

3. Large Format Copier Fees (up to 36" x 48") $4.00

4. Audio RecordingsCopies of audio tapes of meetings regularly recorded: For the first standard size cassette tape For each additional cassette tape

$10.00 $4.00

5. Locate FeeCharge to cover normal and reasonable staff time (10 minutes or less per request) to locate requested documents

$3.75 per document

6. Search FeeAdditional charges for staff time when responding to record requests that require more than the “normal and reasonable” time for responding to routine record requests. There is a maximum of four hours labor for any request

$40 per hour, charged in 15 minute increments.

7. Certified CopyCertification shows that the record is a true copy of the original.

$5.00 per document

8. FaxFacsimile (fax) of records

$5.00 for first page$1.00 each addt’l page

9. NSF Check FeeFor any check, payable to the City, returned by the City's depository for insufficient funds or other reason

$30.00

10. Searches of the City Lien docketReturned payment

$20$25 each$10

Taxi Fares PRODUCT OR SERVICE FEE

1. Minimum fee per call Plus per mile or fraction thereof

$3.25 $2.002.25/mile

Each additional passenger $0.60

2. Special charges:All round tripsPlus waiting time

Total metered time $17.0024.00 per hour

Waiting time when stopped by order of passenger $17.0024.00 per hourExtra stops when going in the same direction $0.65Waiting time $17.0024.00 per hour

3. Delivery chargesMinimumPlus per metered milePlus handling charge for not over ten pounds

$1.50 $1.20/mile$1.75

Above ground floor $1.25 per floor per ascent

4. Pick-up of additional passenger en route $1.20 per metered mile plus

Minimum fee for two passengers $0.75 per passengerMinimum fee for three or more passengers $0.50 per passenger

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Page 3

Street Maintenance Utility Fee

PRODUCT OR SERVICE FEEMeter Size Meter Equivalent Utility Fee

1. 0.75-inch 1.0 $ 5.15 5.002. 1.00-inch 1.7 $ 8.75 8.503. 1.50-inch 3.3 $ 17.00 16.504. 2.00-inch 5.3 $ 27.30 26.505. 3.00-inch 10.7 $ 55.10 53.506. 4.00-inch 16.7 $ 86.00 83.507. 6.00-inch 33.3 $ 171.50 166.508. 8.00-inch 80.0 $ 412.00 400.009. Residential Utility Accounts. All residential utility

customers will only be charged the 0.75-inch meter equivalent utility fee.

10. Annualized Rate Adjustment. Beginning in 2017, each April 1 Resolution charges for Street Maintenance Utility Fee Charges shall be adjusted by an amount equal to the greater of 2.5% or the year to year percentage change in the Engineering News Record (ENR) Construction Cost (20-city average) Index as of December of the preceding calendar year. The billing rate will be the adjusted rate rounded to the nearest $0.05.

Res. #2628

Water Rates

PRODUCT OR SERVICE

FEES

1. Size of ServiceNo Pavement

With Sidewalk No Pavement With Pavement

With PavementAnd Sidewalk

3/4" $1,134.30 $1,712.35 $2,073.55 $2,651.551" $1,264.40 $1,842.35 $2,203.65 $2,781.601 1/2" $1,842.35 $2,420.35 $2,781.60 $3,359.602" $2,536.00 $3,114.00 $3,475.25 $4,053.25Over 2" Actual cost of field labor, materials, plus 40% (for overhead). A full

deposit based on an estimated cost is required before installationNote: Deposit required based on estimated cost

2. Base Rates: In-City Rates Out of City RatesSingle Family Dwelling Unit $22.00 $33.00Duplex, per Dwelling Unit $16.80 $25.20Multiple-Family Dwelling (3 or more units), per unit $12.65 $19.00Motels, per unit $8.35 $12.55Recreation Vehicle Spaces, per space $5.60 $8.40Commercial Commercial, industrial, hospitals, hotels, retail stores,service establishments, professional and other offices,financial institutions and other similar establishments1" or less meter $27.30 $40.951 1/2" $48.85 $73.252" $76.95 $115.453" $138.85 $208.30

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Page 4

4" $252.90 $379.356" $359.20 $538.808" $680.15 $1,020.2010" or greater $1,001.15 $1,501.70Fire Service: $10.30 per diameter inch

3. Volumetric Rates to be Charged One unit of water usage equals 100 cubic feet or 748 gallons. First 19 units: $1.40 $2.1020 units to 149 units: $1.55 $2.30150 units or more: $1.60 $2.45

4. Temporary ServiceTemporary service of 7 days or less (plus applicable rate for amounts over 500 cu. ft. of water)

$47.90

Charge for fire hydrant connection, per construction project Additional fee for each time the location of such service is changed

$823.80 520.20 per season$114.50 72.30

Installation charges and deposits. The applicant for temporary service shall be required:

a) For metered service a deposit for meter installation and removal,providing appropriate service exists and City personnel does theinstallation

b) For fire hydrant connection:(1) Installation fee, if City personnel does the installation(2) Minimum water charge specified above(3) Refundable equipment deposit to be used to cover any

damage to equipment loaned by the Water Department tothe applicant for use in such temporary service

$101.15

$101.15$267.30$722.50

5. Water Fill Stations $72.20 280.806. Meter Removal

Meter removal $43.35Reinstallation charge $36.10

7. Out-of-City Wholesale Customers Wholesale Customers are those customers which operate and maintain their own water distribution system to which the City supplies water via an intertie.

110% of the In-City Rates for Volumetric Rates

The Confederated Tribes of the Umatilla Indian Reservation (CTUIR), through a pre-existing agreement for an existing intertie. Any additional usage by the CTUIR greater than 100,000 cubic feet a month is charged as prescribed for Out-of-City Wholesale Customers.

100,000 cubic feet per month at no charge

8. Annualized Rate Adjustment The billing rate will be the adjusted rate rounded to the nearest $0.05

Lesser of 3.5% or Portland-Salem CPI-U

9. Payment of ChargesWhere service has been disconnected for failure to pay for services rendered before such service shall be restored or water turned on again.

$43.35

Minimum service charge to customers desiring service on Saturdays, Sundays, Holidays and between the hours of 4:30 p.m. and 8:00 a.m. weekdays

$50.55

The fee to provide a postcard late notice for overdue charges $ 5.60The fee to provide a door hanger notice of overdue charges $14.45

10. Cross ConnectionsLawn, garden or landscaping sprinkling systems permit $40.80Fee to conduct the first inspection and/or test of the backflow prevention device

$27.20

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Page 5

Res. 2626

11. Tampering or by-passing serviceFor tampering with or by-passing water service after meter is shut off or locked out for non-payment

$89.85

12. Annualized Rate AdjustmentEach April 1 Resolution charges for Service Connection Installation Charges, Temporary Services, Water Fill Stations, Meter Removal / Reinstallation, Payment of Charges, Cross Connections, and Tampering or By-Passing Service shall be adjusted by an amount equal to the greater of 2.5% or the year to year percentage change in the Engineering News Record (ENR) Construction Cost (20-city average) Index as of December of the preceding calendar year.

Resolution charges for Base Rates to be Charged and Volumetric Rates to be Charged shall be increased 10.5% on January 1, 2017; January 1, 2018; January 1, 2019, & January 1, 2020.

The billing rate will be the adjusted rate rounded to the nearest $0.05.

2.5% or greater

10.5% per year

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1



Date Submitted: Type of Action Requested: Subject:March 23, 2017 Resolution Date Action Requested: OrdinanceApril 4, 2017 Formal Action/MotionAttachments: (list) Contract with Full Court

Other

Full Court Upgrade

TO: Mayor and City Council

FROM: Linda K. Carter, Finance Director

RECOMMENDATION: Staff recommends approving the contract with FullCourt for a court conversion update and request approval for the Mayor to sign the contract.

DISCUSSION: The City converted to FullCourt from a paper only system back in 1999 to 2000. This is the first full conversion for FullCourt since that time. This conversion provides the Court and City Attorney with more efficiency through imaging capabilities, integration with the Finance Department through an interface, and increased citizen access through a web interface. FullCourt will no longer support our older version and through this conversion our Court will attempt to become a paperless environment to the extent that it is allowed, and customers can make online payments directly through the new program. Staff reviewed several programs over the last year including what Tyler Technologies offered, which is the current finance software provider, and a couple other prosecutor software options, including one from the same company that make FullCourt. All staff involved in the decision process agreed that FullCourt conversion provided the most functionality. Maintenance fees will be $7,416 annually outside of the conversion and product purchase costs.

FISCAL IMPACT: This conversion has been approved by the Council through the budget process for FY17 for a cost of $39,600 shared between the City Attorney’s office and the Court division. The contract is for $37,900. It should be noted that the

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2

proposed budget will budget some of these costs as carryover into FY18 since there is a very good chance the City will not be done with the conversion by June 30th.

ALTERNATIVES: None suggested.

_____Linda CarterPrepared by: Finance Director Approved by: City Manager

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FullCourt to FullCourt Enterprise Upgrade Page 1 of 18

FULLCOURT TO FULLCOURT ENTERPRISE™ UPGRADE

This FULLCOURT TO FULLCOURT ENTERPRISE™ UPGRADE (“Upgrade”) is entered into this ______ day of March, 2017 by and between JUSTICE SYSTEMS, INC. (“Justice Systems”) and the Pendleton Municipal Court (“Customer”).

RECITALS

WHEREAS, Justice Systems and Customer entered into that certain “Justice Systems, Inc. Agreement” executed by Customer on March 15, 1999 (“Agreement”); and

WHEREAS, Justice Systems has improved and enhanced its SOFTWARE to FullCourt Enterprise™; and

WHEREAS, it is in Customer’s best interest and Customer desires to update its SOFTWARE to FullCourt Enterprise; and

WHEREAS, the update can be accomplished by way of modifications to Customer’s Agreement and additional SOFTWARE and SERVICES associated therewith.

TERMS AND CONDITIONS

NOW THEREFORE, in consideration of the mutual promises and agreements contained in this Upgrade, Justice Systems and Customer promise and agree as follows:

1. All Terms, Conditions, Clauses, Licenses, Sub-Licenses, and Agreements not specifically modified or replaced by this Upgrade remain in effect as per the Agreement.

2. The FullCourt License is replaced by the FullCourt Enterprise License attached hereto.

3. The Data Dictionary License is hereby modified to be a license for the FullCourt Enterprise Data Dictionary.

4. A Sublicense for FullCourt Enterprise Application Server is granted as attached hereto.

5. The original Sublicense for Oracle Database is hereby changed to 10 Application-Specific, Named User licenses of Oracle 12c Standard Edition 2.

6. The Operating Environment requirements are updated as attached hereto.

7. The Services included with this Upgrade are on-site Training as per the Justice Systems email of 30 January 2017, and the optional Integrated Imaging Module and associated services as specified in the FullCourt Enterprise Upgrade Proposal dated 9 December 2016, and the other services specified in the FullCourt Enterprise Upgrade Proposal dated 9 December 2016, except for Citation Import setup.

8. Maintenance and Support is modified as follows Maintenance now includes upgrade versions of the Standard Software periodically distributed. Support is provided for only the most current release of the Software

9. The total one-time pricing for this Upgrade is as follows: 5 FullCourt Enterprise full use licenses $3,900 1 FullCourt Enterprise view-only license $2,135 5 FullCourt Enterprise image module licenses $5,790 Imaging module setup and training $3,750 FCE remote installation and setup; on-site training $17,325 Data Conversion services $3,000 Setup of FullCourt Enterprise financial interface $2,000 TOTAL: $37,900

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10. The total recurring annual cost for Maintenance and Support for this Upgrade is:

5 FullCourt Enterprise full use licenses $5,637.50 1 FullCourt Enterprise view-only license $563.75 5 FullCourt Enterprise image module licenses $715.00 Standard Financial Interface $500.00 TOTAL: $7,416.25

Customer Initials

_______

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FULLCOURT ENTERPRISE™ SOFTWARE LICENSE Date of License: _____ March 2017 Justice Systems grants to Customer a personal, non-transferable, nonexclusive license to use FullCourt Enterprise SOFTWARE and DOCUMENTATION and to use other SOFTWARE modules developed and provided by Justice Systems in conjunction therewith as identified below. By use of the STANDARD SOFTWARE and CUSTOM SOFTWARE Customer agrees to abide by the terms of this SOFTWARE LICENSE. “Definitions” as set forth in the Agreement to which this SOFTWARE LICENSE has been made a part are not repeated herein, but are hereby incorporated by reference as though fully set forth herein for the purpose of this SOFTWARE LICENSE. Note: This SOFTWARE LICENSE is intended to cover the STANDARD SOFTWARE and CUSTOM SOFTWARE, as well as any modules that are used in conjunction therewith and as may be delivered by Justice Systems pursuant to the provisions of the underlying Agreement to which this SOFTWARE LICENSE has been made apart. Not all modules may be licensed hereunder, and the Customer should review the schedule below to determine those products for which this SOFTWARE LICENSE has been granted. The number of licensed users to the application may be different than those licensed for each module. This SOFTWARE LICENSE supersedes and replaces any and all other FullCourt licenses granted to the Customer prior to the date set forth above, and does not grant the right to increase the number of concurrent users for any of the licensed products beyond the number identified herein. Acceptance of this SOFTWARE LICENSE and use of the products licensed hereunder supersedes and replaces all previously granted LICENSES only to the extent that they conflict with this SOFTWARE LICENSE. DEFINITIONS: As used in this License, the following words or terms shall have the meaning described as set forth below: “CUSTOM SOFTWARE”- shall mean those deliverables, as well as documentation related thereto, which are made available by Justice Systems to Customer as part of a customization, modification, alteration, supplementation, addition or change to the STANDARD SOFTWARE and intended to be used as part of or in conjunction therewith. “CUSTOM SOFTWARE” includes all embedded components, subsystems, libraries and/or runtimes supplied by Justice Systems as part of the FullCourt Enterprise customization whether or not the same originated with Justice Systems. “DOCUMENTATION”- shall mean all written, printed, electronic or other format materials published or otherwise made available by Justice Systems that relate to the functional, operational and/or performance capabilities of the Software. Documentation shall not include Source Code. “LICENSE”- shall mean the worldwide, perpetual, personal, non-transferable, license for Customer’s internal use only granted by Justice Systems to use the Software and Software Products under this Agreement. “MIDDLEWARE”- shall mean the Software layer that lies between the operating system and the application. Typically this refers to the application server software. “OBJECT CODE”- shall mean the binary machine readable version of the Software. “SERVICES”- shall mean the work done by Justice Systems in support of the Software and Software Products but not limited to installation Services, training, consulting, on site and remote support, as well as such other Services as may be mutually agreed upon by the parties. “SOFTWARE”- shall mean the aggregate of the STANDARD SOFTWARE and the CUSTOM SOFTWARE, including all physical components, that are provided by Justice Systems, including but not limited to magnetic and digital media, job aids, templates and other similar devices, and exclusive of the SUBLICENSED systems and products not provided by Justice Systems.. “SOFTWARE PRODUCTS”- Shall mean all physical components, other than Software, that are offered by Justice Systems, including but not limited to documentation, magnetic and digital media, CD-ROMS, job aids, templates and other similar devises.

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“SOURCE CODE”- shall mean those statements in computer language, which when processed by a compiler, assembler or interpreter become executable by a computer. Unless otherwise specifically set forth in this or a separate written instrument, the use of Source Code is not authorized or granted hereunder. “STANDARD SOFTWARE”- means the standard FullCourt Enterprise application as indicated on the LICENSE which is attached to and made a part of this Agreement. “STANDARD SOFTWARE” includes all embedded components, subsystems, libraries and/or runtimes supplied by Justice Systems as part of the FullCourt Enterprise application whether or not the same originated with Justice Systems. “STANDARD SOFTWARE” does not include the SUBLICENSED systems or any Customer-supplied software or systems which may be used in conjunction with the FullCourt Enterprise, whether the same may or may not be necessary for the performance of that system. “SUBLICENSE”- shall mean the non-transferable, temporary, non-exclusive, license for Customer’s use only granted by Justice Systems to use the components of the STANDARD SOFTWARE licensed to Justice Systems by third parties under the terms and conditions of their respective license agreements. SUBLICENSED components are warranted and supported by Justice Systems as provided in the LICENSE and in the Maintenance and Support Agreement. The SOFTWARE LICENSE granted herein authorizes the use of the SOFTWARE only in OBJECT CODE format (and does not grant any rights to SOURCE CODE) for the purposes of creating, updating, and/or deleting information or data of Customer by no more than FIVE (5) concurrent users, and may be used for View-Only access of information or data of Customer by no more than ONE (1) concurrent user. A “concurrent user” is anyone authorized by Customer who is signed onto the application through a workstation as permitted by the application (any such user simultaneously signed on through more than one (1) workstation will only be counted as a single user). Customer shall assure compliance with the conditions of this license and will permit Justice Systems to perform reasonable audits and on-site inspections of the SOFTWARE, and its use. The SOFTWARE shall be used only within the geographical jurisdiction of Customer and at such sites as are identified in writing to Justice Systems. Customer shall not make copies of the SOFTWARE, nor shall Customer sell, assign, give or permit a security interest to be taken herein or otherwise convey or allow any other person or entity to use the SOFTWARE without prior written consent of Justice Systems. Customer shall not cause or permit reverse engineering, derivation of SOURCE CODE, disassembly, decompilation of the SOFTWARE nor disclose nor permit access to the SOFTWARE by any unauthorized third party without the written consent of Justice Systems. Customer shall not create derivative works from, adapt, translate or use any portion of the SOFTWARE except as otherwise specifically permitted in this SOFTWARE LICENSE. Customer shall not disclose results of benchmark tests of the SOFTWARE. Customer acknowledges that Customer obtains no ownership rights in the SOFTWARE and that the SOFTWARE is the proprietary product of Justice Systems and is protected by copyright and other intellectual property laws. Customer shall have the right to use the SOFTWARE in the operating environment identified by Customer to Justice Systems. No database relationships shall be modified, nor shall any writing of data into the database be performed by Customer, at Customer’s direction, or with Customer’s knowledge and consent. Once installed by Justice Systems, Customer may not copy onto or transfer the SOFTWARE to any other device(s) than that upon which originally installed, except in the case of one-to-one transfers to new hardware installations, in which case such hardware shall conform to any prerequisites of this SOFTWARE LICENSE or accompanying SUBLICENSES and that the use of the SOFTWARE installed on the pre-existing hardware will terminate immediately. Notwithstanding the terms of this subparagraph, Customer may temporarily transfer the SOFTWARE onto another device if the original device becomes inoperable or is malfunctioning. Additionally, Customer is authorized to use in conjunction with the SOFTWARE the following modules, which have been identified by the initials of an authorized representative of Justice Systems, for the number of concurrent users indicated next to the description of each module:

Per User/Seat Licensed Modules: Initials: __N/A__

FullCourt Enterprise Jury Management Module Number of Licensed Users (__N/A__)

Initials: __N/A__

FullCourt Enterprise Batch Scanning Module Number of Licensed Seats (__N/A__)

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Licensed Users Same As Number of Concurrent Users of SOFTWARE: Initials: _______

FullCourt Enterprise Imaging Module

Unlimited Public Access Users of SOFTWARE

Initials: __N/A__

FullCourt Enterprise unlimited Public Access users; provided with CPU license for Oracle

JUSTICE SYSTEMS WARRANTS THAT IT OWNS ALL RIGHTS, TITLE, AND INTEREST IN AND TO THE SOFTWARE DESCRIBED AND IDENTIFIED IN THIS LICENSE. JUSTICE SYSTEMS DOES NOT WARRANT THAT THE OPERATION OF THE LICENSED AND SUBLICENSED SOFTWARE OR OF THE APPLICATION WILL BE UNINTERRUPTED AND ERROR FREE. JUSTICE SYSTEMS DOES NOT WARRANT AGAINST INTERFERENCE WITH ENJOYMENT OF INFORMATION. THIS WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES. WARRANTY OF LAW: JUSTICE SYSTEMS REPRESENTS AND WARRANTS THAT TO THE BEST OF ITS KNOWLEDGE: (I) THERE IS NO CLAIM, LITIGATION OR PROCEEDING PENDING OR THREATENED AGAINST JUSTICE SYSTEMS WITH RESPECT TO THE COMPUTER SOFTWARE PROVIDED TO CUSTOMER OR ANY COMPONENT THEREOF ALLEGING INFRINGEMENT OF ANY PATENT OR COPYRIGHT OR ANY TRADE SECRET OR ANY PROPRIETARY RIGHT OF ANY PERSON; (II) THE COMPUTER SOFTWARE PROVIDED TO CUSTOMER COMPLIES IN ALL MATERIAL RESPECTS WITH APPLICABLE LAWS, RULES AND REGULATIONS; (III) JUSTICE SYSTEMS HAS FULL AUTHORITY TO ENTER INTO THIS AGREEMENT AND TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED HEREBY; AND (IV) THIS AGREEMENT IS NOT PROHIBITED BY ANY OTHER AGREEMENT TO WHICH JUSTICE SYSTEMS IS A PARTY OR BY WHICH IT MAY BE BOUND. IN THE EVENT OF A BREACH OF THIS WARRANTY OF LAW, JUSTICE SYSTEMS SHALL INDEMNIFY AND HOLD HARMLESS THE CUSTOMER FROM AND AGAINST ANY AND ALL HARM, INJURY, DAMAGES, COSTS, LOSSES, LIABILITIES, SETTLEMENT AMOUNTS AND EXPENSES, INCLUDING REASONABLE ATTORNEYS' FEES AND EXPENSES, INCURRED BY JUSTICE SYSTEMS ARISING OUT OF SAID BREACH. JUSTICE SYSTEMS SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES OR OTHER DAMAGES FOR LOST REVENUE, LOST OPPORTUNITY, LOST DATA OR DATE USE INCURRED BY CUSTOMER OR ANY THIRD-PARTY AND IN ANY EVENT, ANY LIABILITY OF JUSTICE SYSTEMS SHALL NOT EXCEED THE AMOUNT PAID BY CUSTOMER FOR THE SOFTWARE; PROVIDED, HOWEVER, THAT THIS LIMITATION SHALL NOT APPLY TO JUSTICE SYSTEM'S INDEMNIFICATION OBLIGATIONS FOR WARRANTY OF LAW AS SET FORTH, ABOVE. EXCEPT AS SET FORTH IN THIS AGREEMENT, JUSTICE SYSTEMS MAKES NO IMPLIED REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE SOFTWARE AS TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. CUSTOMER RECOGNIZES THAT PORTIONS OF THE SOFTWARE MAY INCLUDE OPEN SOURCE CODE DERIVED FROM OTHER SOURCES THAN JUSTICE SYSTEMS AND THAT WITH RESPECT TO THAT SOURCE CODE, JUSTICE SYSTEMS HAS TAKEN REASONABLE PRECAUTIONS AND TO THE EXTENT REASONABLY POSSIBLE USED DUE DILIGENCE IN ASSURING THAT THE SOFTWARE PROVIDED IS FREE OF THIRD-PARTY CLAIMS OF COPYRIGHT OR PATENT INFRINGEMENT. FULLCOURT ENTERPRISE MAY INCLUDE RUNTIME PRODUCTS OF THIRD-PARTY VENDORS IN ORDER TO PROVIDE ADDITIONAL FUNCTIONALITY FOR THE BENEFIT OF CUSTOMER.

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CUSTOMER AGREES NOT TO ALTER, DISASSEMBLE, DECOMPILE, TRANSLATE, ADAPT OR REVERSE-ENGINEER ANY SUCH RUNTIME PRODUCT OR THE PROPRIETARY PRODUCTS CREATED THEREWITH (E.G., WITH RESPECT TO REPORT GENERATION TOOLS THE .RPT REPORT FILE FORMAT); NOT TO DISTRIBUTE THE RUNTIME PRODUCTS TO ANY THIRD-.PARTY; NOT TO USE THE RUNTIME PRODUCTS TO CREATE FOR DISTRIBUTION A PRODUCT THAT IS GENERALLY COMPETITIVE WITH THOSE RUNTIME PRODUCT(S) PROVIDED BY JUSTICE SYSTEMS; AND, NOT TO USE THE RUNTIME PRODUCTS ON A RENTAL OR TIMESHARING BASIS OR TO OPERATE A SERVICE BUREAU FOR THE BENEFIT OF THIRD PARTIES. WITH· RESPECT TO THOSE RUNTIME PRODUCT(S) LICENSED BY BUSINESS OBJECTS, S.A, OR ANY OF ITS SUBSIDIARIES, CUSTOMER AGREES NOT TO USE THE RUNTIME PRODUCT(S) TO CREATE FOR DISTRIBUTION A PRODUCT THAT CONVERTS THE REPORT FILE (.RP1) FORMAT TO AN ALTERNATIVE REPORT FILE FORMAT USED BY ANY GENERAL PURPOSE REPORT WRITING, DATA ANALYSIS OR REPORT DELIVERY PRODUCT THAT IS NOT THE PROPERTY OF BUSINESS OBJECTS, S.A, OR ANY OF ITS SUBSIDIARIES. THIS WARRANTY EXTENDS ONLY TO THE CUSTOMER IDENTIFIED IN THE BODY OF THIS LICENSE AGREEMENT, OR THE UNDERLYING AGREEMENT TO WHICH IT HAS BEEN MADE AN ATTACHMENT. SUBSEQUENT TRANSFEREES MUST ACCEPT THE APPLICATION "AS IS" AND WITH NO WARRANTIES OF ANY KIND. ANY AND ALL WARRANTIES AND INDEMNIFICATIONS PROVIDED BY THIS LICENSE SHALL BE NULL AND VOID AS TO THE SOFTWARE, SOFTWARE PRODUCTS AND SERVICES WHERE NONCOMPLIANCE IS CAUSED BY OR RELATED TO (1) ACTS OR OMISSIONS OF OTHERS THAN JUSTICE SYSTEMS PERSONNEL, ITS AGENTS OR THIRD PARTIES; (2) MISUSE, THEFT, VANDALISM, FIRE, WATER OR OTHER PERIL; (3) MOVING OR RELOCATION NOT AUTHORIZED BY JUSTICE SYSTEMS; (4) ANY ALTERATIONS OR MODIFICATIONS MADE TO THE SOFTWARE BY CUSTOMER, ITS AGENTS OR REPRESENTATIVES, ACCIDENT, ABUSE, MISAPPLICATION, FAILURE TO FOLLOW CORRECT PROCEDURES FOR STARTING UP THE SYSTEM OR SHUTTING IT DOWN, OR BY INTRODUCTION OF ANY NEW SOFTWARE OTHER THAN IN THE OPERATING ENVIRONMENT SPECIFIED BY JUSTICE SYSTEMS; (6) FAILURE OF CUSTOMER TO ADEQUATELY PROVIDE FOR DATA SECURITY AND REASONABLE PROTECTION AGAINST VIRUSES, WORMS OR OTHER DESTRUCTIVE SOFTWARE MECHANISMS; OR (7) CODING, INFORMATION, OR SPECIFICATIONS CREATED OR PROVIDED BY CUSTOMER. Notwithstanding any other provision of the Amendment Justice Systems may terminate this SOFTWARE LICENSE agreement immediately if Customer (a) fails to make any LICENSE fee payment as set forth by agreement; or, (b) commits a material breach of any of its obligations provided for under this LICENSE, which breach is not remedied or cured within sixty (60) days after notice thereof by Justice Systems to Customer. Upon termination, Customer shall immediately cease to use the SOFTWARE and shall immediately deliver to Justice Systems all copies of the SOFTWARE or any other property of Justice Systems relating to the SOFTWARE and shall certify in writing that these terms have been fulfilled. Customer recognizes that money damages may not be an adequate remedy for its breach or violation of the terms of this SOFTWARE LICENSE, or threatened breach or violation, and injunctive relief or other equitable remedies shall be available to Justice Systems as a remedy in addition to any other remedies available under the law. Any dispute relating to the terms of this license other than claims for preliminary injunctive relief or other equitable remedies shall be resolved at the request of either party through binding arbitration. Arbitration shall be conducted in Albuquerque, New Mexico under the rules and procedures of the American Arbitration Association. This provision, and the rights created hereunder, shall survive termination of the Agreement.

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FULLCOURT ENTERPRISE™ OPERATING ENVIRONMENT Standard Configuration: FullCourt Enterprise is supported by different components, each of which may be implemented on separate hardware platforms. These components are:

FullCourt Enterprise middle tier application/web server. Justice Systems requires FullCourt Enterprise Application Server as the application / web server for FullCourt Enterprise. The server running the application / web server must use either a Windows Server 2008 / 2008 R2 / 2012 / 2012 R2, or Red Hat Linux 6.x/7.x or later operating system that is compatible with FullCourt Enterprise Application Server or such other MIDDLEWARE products as Justice Systems may approve.

Database server containing FullCourt Enterprise application data. Justice

Systems requires Oracle 12c as the database server. The server running the database server must use either a Windows Server 2008 / 2008 R2 / 2012 / 2012 R2, or a Linux variant operating system that is compatible with Oracle.

Workstations supporting the browser based user interface. Justice Systems

currently requires Google Chrome v28 or later as the browser for FullCourt Enterprise but will designate at the time of installation the appropriate version (in the event of change).

Performance of the overall system is the result of a combination of products working together in harmony. Inasmuch as both parties will be independently providing and responsible for maintaining various components of the system, the parties mutually recognize that no assurances can be made by Justice Systems as to the final performance of the SOFTWARE. The parties agree to work together to achieve optimum performance results to the extent that the same may be reasonably obtained. Justice Systems Will Provide: It is understood that the FullCourt Enterprise System utilizes the Oracle database and that Justice Systems will provide the Oracle database with FullCourt Enterprise. It is understood that the FullCourt Enterprise System utilizes FullCourt Enterprise Application Server MIDDLEWARE and that Justice Systems will provide this MIDDLEWARE with FullCourt Enterprise. Justice Systems will provide as a part of the implementation contemplated by this Agreement all necessary SOFTWARE and SOFTWARE PRODUCTS for the operation of the FullCourt Enterprise System, including Enterprise Service Bus. Customer Will Provide: Any and all other components of the operating environment will be provided by Customer, including without limitation, the following:

All hardware, including workstations and servers Compatible operating systems All networking components All printers and scanners Microsoft Word A compatible internet browser All backup system components Java Virtual Machine Java Development Kit

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Customer Preparation Responsibilities: The Customer must have the complete hardware and networking infrastructure in place and operational before the installation of the STANDARD SOFTWARE and/or CUSTOM SOFTWARE. This includes: 1. Assuring that all hardware (server/workstations/Local Area Network/ printers/Internet access with ports 80

and 443 unblocked/tape backup system etc.) is fully tested and operational prior to the FullCourt Enterprise installation.

2. Assuring that Internet access is available to the server and workstations in order to support remote installation

and diagnosis. If any component is to be installed on servers running either UNIX or Linux, at least one (1) Windows workstation with Internet access should also have X Server SOFTWARE installed so that the server(s) may be accessed for installation, configuration and maintenance.

The entire system (including Internet connection) must be fully tested and operational prior to the installation of the Justice Systems’ provided SOFTWARE. Customer must contact Justice Systems with any questions regarding the required hardware/software necessary to run the Justice Systems’ products. In order to assure that the proper hardware, networking, and operating system infrastructure, etc. is installed and fully operational, Justice Systems will conduct a preliminary installation conference call with the appropriate Customer staff (including Information Systems personnel). The operating environment will be configured by Customer pursuant to the provisions of the most currently published version of the “FullCourt Enterprise Recommended System Configuration” which will be provided to Customer by Justice Systems.

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FullCourt Enterprise Application Server SUBLICENSE Agreement

Justice Systems grants to Customer a SUBLICENSE to use FullCourt Enterprise Application Server software (FCE-AS) in conjunction with the FullCourt Enterprise software provided by Justice Systems to Customer. This SUBLICENSE is subject to the terms and conditions of the underlying Agreement to which this SUBLICENSE Agreement has been made a part, as well as the following terms.

1) The right to use FCE-AS is a nonexclusive, non-transferable SUBLICENSE granted

Customer by Justice Systems to use FCE-AS provided by Justice Systems with the FullCourt Enterprise software LICENSE granted concurrent hereto.

2) FCE-AS will be provided by Justice Systems and shall be used only with FullCourt Enterprise or such other programs as may be provided by Justice Systems to Customer.

3) Justice Systems will install FCE-AS as provided by the agreement(s) referred to above.

4) Each copy of FCE-AS shall be for the Customer’s own internal use within the limits of its geographic jurisdiction. The FCE-AS program shall not be transferred except for temporary transfer in the event of computer malfunction.

5) Customer shall not remove or modify any program markings, nor any notice of proprietary rights. All trademarks, trade names, logos and notices present will be preserved and not deliverately defaced, modified or obliterated except by normal wear and tear. Customer shall not use any trademarks without express written authorization.

6) Customer shall not hold Justice Systems liable for any damages, whether direct, indirect, special, incidental, or consequential, arising from the use of FCE-AS.

7) Customer shall, at the termination of the SUBLICENSE, promptly discontinue use and return to Justice Systems all copies of FCE-AS and Documentation.

8) Customer shall comply fully with all relevant export laws and regulations of the United States to assure that neither FCE-AS, nor any direct product thereof, are exported, directly or indirectly, in violation of United States law or laws of any other country.

9) Justice Systems does not provide any warranty for FCE-AS separate and apart from such warranties as are provided in the software license.

Products Applicable to this Sublicense:

Item # Application Specific Program

Maximum Server Size

Description

Qty

Price per License

Total License Charge

1 FCE-AS N/A FCE Application Server Application Specific, Server Instance Licenses

1 N/C N/C

TOTAL APPLICATION SPECIFIC LICENSE CHARGE $

N/C

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CITEPAYUSA SERVICES AGREEMENT

THIS AGREEMENT entered into this _____ day of March, 2017, by and between Justice Systems, Inc. (the “Provider”) and Pendleton Municipal Court (the “Customer”), shall be the complete understanding of the parties with respect to provision of the products and services hereinafter described, as well as the compensation to be paid on account thereof. THE PARTIES AGREE AS FOLLOWS: 1. Term of Agreement: This agreement shall commence on the date herein executed by both parties and, unless sooner terminated as hereinafter provided, shall be for an initial term of three (3) years. Thereafter, the term shall automatically renew for one (1) year periods unless either party gives written notice to the other at least thirty (30) days prior to inception of the next annual period indicating an intent not to renew. Following the initial three (3) year period either party may terminate the agreement by giving thirty (30) days written notice of intent to terminate.

2. Services: Provider, on behalf of the Customer,

2.1.1. shall perform services for the processing of payments through the use of Provider’s software and facilities, including the uploading of certain data from the Customer’s FullCourt CMS to Provider and the downloading of such payment transactions from Provider to the FullCourt CMS of the Customer.

2.1.2. will provide the appropriate merchant account(s). 2.1.3. will transmit funds due the Customer to its “Deposit Account”. For the purposes of this

subparagraph it is understood that Provider will deposit to the account of the Customer amounts collected for case matters pending before said court as the same may be identified by the FullCourt CMS and in accordance with the provisions of paragraph “5. Payments/Billings/Reports”, below.

2.1.4. Provider, as part of this Agreement, shall sell to Customer as many payment terminals with

CitePay software installed (unit) as the Customer requests from Provider, at a per unit cost of Eight Hundred ($800.00) Dollars (which amount includes delivery charges). Payment terminals are not required for use of CitePayUSA’s online services, and may be requested at any time during the term of this agreement. Each unit shall come pre-installed with CitePayUSA screens and software for interaction with the CitePay ePayment system, which screens and software shall not be modified, removed or otherwise altered without the prior written consent of the Provider. It is understood that the following terms and conditions shall apply to all units purchased:

2.1.4.1. Each such unit shall only be used incidental to the processing of transactions via the

CitePay ePayment system; 2.1.4.2. Each such unit shall be installed and setup by Customer and maintained in accordance

with the provisions for “Maintenance and Support” set forth in paragraph 2.1.5, below; 2.1.4.3. At the beginning of each service year, for each unit placed in service, Customer will pay

to Provider One-Hundred-Eighty ($180) Dollars for Maintenance and Support. 2.1.4.4. Customer agrees to the software license with Verifone, Inc. which is an integral part of

this agreement.

2.1.5. Maintenance and Support: Provider’s Help Desk support team shall provide to the Customer’s employees and their designees all maintenance and support reasonably required for the operation of the CitePay ePayment system. It is understood that under normal circumstances support will be available during normal business hours of 7:00AM through 5:00PM, Mountain Time (excluding weekends and holidays).

2.1.5.1 Should Provider determine that return of the unit to its facilities is required for repair or

replacement of the unit, all shipping and handling charges associated with the return of the unit to said facilities shall be paid by Customer.

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X

2.1.5.2 As part of the ongoing maintenance and support of each unit Provider may reasonably require from time-to-time that Customer install upgrades and enhancements to the software. The timing of the installation of any upgrades and enhancements shall be mutually agreed upon by the Provider and Customer.

2.2. Customer’s Responsibilities:

2.2.1. Customer shall install upgrades to FullCourt CMS and software necessary to assure a

compatible interface with the CitePayUSA ePayment system. Customer, for the purpose of permitting Automated Clearing House Network (ACH) transfers between Customer and CitePayUSA, shall maintain a Deposit Account as per the Authorization Agreement for Direct Deposits/Payments included in this agreement.

2.2.2. Customer shall: (1) notify in writing Provider any time there is a change in the bank or

account that may materially affect the ability of Provider to make ACH transactions to the Customer’s Deposit Account; (2) at its own cost, maintain a persistent connection with the Internet for the purposes of transmittal of data and case information necessary to provide the services herein described and contracted; (3) maintain the FullCourt CMS (i) by continuing in effect the Maintenance and Support Agreement offered by Justice Systems, Inc.; (ii) by installing the then most current release of the FullCourt CMS as specified by Justice Systems, Inc.; (iii) and by maintaining the hardware, infrastructure and operating environment necessary for proper functioning of the FullCourt CMS; (4) be responsible for the accuracy of all case data and content made available to or transmitted to CitePayUSA; (5) immediately notify Provider of any perceived or known irregularities in services provided, including without limitation, the operation of the FullCourt CMS, the CitePayUSA ePayment system, transactions made to the Customer’s account(s) via the ACH system, and any transactions processed through CitePayUSA.com.

3. Fees:

3.1. Automated Payment Service Fees – Customer agrees to pay to Provider an automated payment service fee of 5.95% of the fine, fee or other amounts collected by Provider in behalf of Customer, as compensation for the services and products provided by Provider under this agreement. Customer and Provider understand and agree that said fee shall be paid as follows:

3.1.1 □ Customer agrees and authorizes Provider to assess the automated payment service fee owed for each transaction to the credit card, debit card or other account (as applicable) of the person or entity making payment in behalf of the defendant, litigant or individual, howsoever described, obligated to make a payment to the Customer, the relevant Court or court authorized agency. Said fee shall be in addition to the amount of the obligation owed to the Customer. The parties understand and agree that Provider’s receipt and retention of said fee shall substitute for the payment of same by Customer to Provider, but shall not relieve Customer of the obligation to pay said fee if Provider is ultimately unable to collect it as described in this paragraph, such as in the event of a chargeback or return as provided in paragraph 3.2 below.

3.1.2 □ Provider shall calculate the total amount of automated payment service fees owed by Customer to Provider each month, and shall invoice that total amount to Customer. Said fees shall be due and payable by Customer to Provider 30 calendar days after the date of each invoice. 3.2. Chargeback/Returned Check Fees - In the event that Provider is notified of a chargeback/returned check or the same shall be imposed upon or incurred by Provider for any reason whatsoever Provider shall charge to the Customer and Customer shall pay to the Provider an administrative fee of $15 in addition to all credit card, debit card and ACH transaction fees. Customer shall also reimburse Provider all amounts paid/credited to Customer’s account by reason of the obligation related to the chargeback/returned check. Provider shall notify Customer of any chargebacks/returned checks and provide documentation of amounts due as a result of a chargeback/returned check. [Note: Customer will be responsible for adjusting the balance of the FullCourt case associated with said chargeback/returned check and in accordance with the policies of Customer and/or court].

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3.3. Within the initial three (3) year term of this agreement, or any renewal thereof, all costs and fees enumerated are subject to change only upon the mutual consent of the parties; except that in the event that any costs or fees imposed upon the Provider by the debit/credit card transaction service providers are increased by more than twenty-five (25%) percent Provider shall notify Customer of said increase as soon as reasonably possible. In addition to giving such notification, Provider shall propose to Customer adjustments to the provisions of this Agreement which Provider deems reasonable under the circumstances. Customer will thereafter have three (3) business days within which to accept said proposal or, in lieu thereof, Provider may elect to suspend the provision of services hereunder. If the parties are unable to mutually agree upon an adjustment of the enumerated costs and fees within a reasonable time following notification, either party may elect to terminate this agreement without penalty.

4. Security, Exclusivity: The parties agree that each shall remain compliant with the PCI Data Security Standard requirements of the Card Association and/or Merchant Bank and that the CitePay ePayment system shall be the exclusive method utilized for accepting all credit and debit card transactions for the payment of fines, fees, bonds and other payments by those courts of Customer which utilize the FullCourt CMS. The Customer shall cease using any alternative methods or systems for accepting credit and/or debit card transactions within thirty (30) days of the implementation of the CitePay ePayment system at their location; or, in the event the Customer is under existing contractual obligations which cannot be cancelled without penalty, at the time of termination of said contractual obligations. 5. Payments/Billings/Reports: Provider shall periodically provide to Customer financial reports as may be reasonably necessary for management of transactions. Provider shall transmit by ACH transfer payments received via the CitePayUSA ePayment system, and on account of obligations due to the Customer, within two (2) business days of the deposit of funds representing payment by the obligee, or in behalf of the obligee, to Provider’s account, conditioned upon: (1) a valid authorization code having been received from the Card Association; (2) acceptance of the payment has been had in accordance with the Terms and Conditions of the CitePayUSA website; and (3) payment has been received and deposited into the Provider’s Settlement Bank Account. Availability of ACH transferred funds for use by the Customer is subject to the control of the banking institutions. Payments shall be in the net amount received after deduction of all automated payment fees. 6. Confidentiality: Customer acknowledges that portions of the CitePayUSA ePayment system are a copyrighted work. Any materials provided by Provider including documentation may contain proprietary intellectual property rights. Customer agrees to keep the software, documentation and the CitePayUSA proprietary intellectual property in confidence and to take all reasonable precautions to ensure that no unauthorized persons have access to the same and that no unauthorized copies are made. Breach of this provision shall be construed as a material breach of the terms of this Agreement. As a consequence, in the event of such any breach, Provider at its sole option, may immediately terminate this Agreement without further obligation. Customer shall not alter any proprietary markings in connection with the CitePayUSA ePayment system, including copyright, trademark, trade secret, and patent legends. Customer’s obligations under this section as they relate to the use of the CitePayUSA ePayment system shall include, without limitation, giving notification to authorized users of the provisions of this section; to immediately halt and report to Provider unauthorized copying, use, distribution, installation, or transfer of possession of the licensed products by any authorized user of which Customer has actual knowledge. It is understood that receipt of confidential information under this Agreement shall not create any obligations in any way limiting or restricting the assignment of Customer’s employees. 7. WARRANTY: IN NO EVENT SHALL PROVIDER BE LIABLE FOR SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL OR EXEMPLARY DAMAGES OR FOR ANY INTERRUPTION OR LOSS OF USE, DATA, BUSINESS OR PROFITS, WHETHER OR NOT SUCH LOSS OR DAMAGES WERE FORESEEABLE OR OF WHICH PROVIDER WAS ADVISED OF THE POSSIBILITY THEREOF AND REGARDLESS OF WHETHER ANY LIMITED REMEDY HEREIN FAILS OF ITS ESSENTIAL PURPOSE. PROVIDER SPECIFICALLY DISCLAIMS ALL WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THE INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS WITH RESPECT TO THE SERVICES PROVIDED HEREUNDER. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, PROVIDER DOES NOT GUARANTEE OR WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR-FREE.

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8. Acts or Failures to Act: Neither party shall be responsible for liability incurred as a result of the other party's acts or omissions in connection with this Agreement. 9. Limitation of Liability: Provider will not accept responsibility for errors, acts, failure to act by banks, communication common carriers, data processors or clearinghouses through which transactions may be passed, originated, and/or authorized. Provider undertakes no duties to Customer other than the duties expressly provided for in this Agreement. 10. Severability: In the event that any provision of this agreement is held by a court of competent jurisdiction to be legally ineffective or unenforceable, the validity of the remaining provisions shall not be affected. 11. Provider Software Upon Termination: Upon termination of this agreement, with or without cause, Customer shall immediately cease the use of any CitePay software installed on the payment terminals as well as software installed upon other devices for the purpose of interfacing to said terminals. 12. Notices: Any notice required or permitted to be given in this agreement shall be in writing and shall be sent in a manner requiring a signed receipt, or if mailed, by registered or certified mail, return receipt requested. Notice is effective upon receipt. Unless otherwise set forth in writing, the addresses for notice are those set forth with the names of the signatories to this agreement below. 13. No Waiver: The failure of either party to exercise any right, or the waiver by either party of any breach, shall not prevent a subsequent exercise of such right nor be deemed a waiver of any subsequent breach of the same or any other term of the agreement. 14. Force Majeure: Neither party shall be deemed in default of this agreement to the extent that performance of their obligations or attempts to cure any breach are delayed or prevented by reason of any act of God, fire, natural disaster, accident, shortages of materials or supplies, or any other cause beyond the control of such party. This provision requires that any party claiming relief under this provision give written notice within fifteen (15) days of discovery thereof.

15. Compliance with Federal, State & Local Law: The parties shall perform all obligations hereunder in compliance with applicable federal, state and local statutes, laws, regulations and ordinances. This agreement shall be governed by and interpreted, construed, and enforced in accordance with the laws of the State of New Mexico.

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CITEPAYUSA SERVICES AGREEMENT DEFINITIONS

When used in this Agreement the following words or terms, unless otherwise specifically stated, shall have the following meaning:

a. "ACH" – means the Automated Clearing House Network. b. "Authorization" – is the process whereby Provider in compliance with the Operating

Rules for each Card obtains approval of a Charge from the Card Issuer. An Authorization indicates only the availability of the Cardholder’s credit limit at the time the Authorization is requested.

c. “Business Day” – is Monday through Friday excluding Merchant Bank holidays. Each Business

Day ends at the cutoff time specified by the Merchant Bank. Charges submitted for processing on a holiday, weekend, or after the cut-off time are treated as received on the following Business Day.

d. “Card Association” – refers to any entity formed to administer or promote credit cards or debit cards,

including without limitation, MasterCard International, Inc., Visa International, DiscoverCard and Debit Networks.

e. “Cardholder” – is the person issued a credit card or debit card and a corresponding account by a

Card Issuer. f. “Card Issuer” – is the institution authorized by a Card Association to issue credit cards and debits

cards to Cardholders and that has issued a credit card or debit card presented to Provider for a charge or credit voucher.

g. “Chargeback” – is a return of a charge to Provider typically initiated by a Cardholder through a

Card Issuer, for transmittal to and payment by Merchant under Operating Rules established by the Card Association.

h. “CitePay Terminal” – is such device or devices, including software, either provided or required by

Provider for interfacing to the FullCourt CMS and/or other hardware so as to allow interaction with the CitePayUSA ePayment system. The sale or conveyance by Provider of each device, or associated software, is subject to restrictions and conditions imposed by third-party providers.

i. “Credit Card” – A plastic card (Visa–branded, MasterCard-branded or DiscoverCard-branded

Credit and Business Cards or Debit Cards) bearing an account number assigned to a cardholder with a credit limit that can be used to purchase goods and services and to obtain cash disbursements on credit, for which a cardholder is subsequently billed by an issuer for repayment of the credit extended at once or on an installment basis.

j. “Database” – dependent upon the context of the language in which it is used, “database” will mean

the FullCourt CMS database associated with the Customer’s court case management system, or the CitePayUSA database owned and maintained by the Provider.

k. “Debit card” – A plastic card with which an individual court customer may withdraw funds on

deposit in the individual court customer's account. A debit card transaction pays the Customer/Provider by withdrawing funds already on deposit in the individual court customer’s account, as opposed to a credit card transaction in which funds are loaned to the individual court customer by the card issuer.

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l. “Deposit Account” – the Customer’s business account with a banking institution set up for receipt of payments from the Provider.

m. “DISCOVERCARD®” card – A card that bears the DiscoverCard symbol, enabling a DiscoverCard

cardholder to obtain goods, services or cash from a DiscoverCard merchant or acquirer. n. “FullCourt CMS” – is the FullCourt® or FullCourt Enterprise® Court Case Management System. o. “Individual court customer” – is the litigant, defendant, respondent, party, driver, registrant, or other

person or corporation, howsoever denominated in the Customer’s FullCourt CMS, or identified as the entity making payment to the Customer on account of fines, fees, charges, bonds, restitution, costs or other obligations related to a court case within the FullCourt CMS database.

p. “MASTERCARD®” card – A card that bears the MasterCard symbol, enabling a MasterCard

cardholder to obtain goods, services or cash from a MasterCard merchant or acquirer. MasterCard Incorporated is a membership organization owned by financial institutions that issue its card. MasterCard is also the company's brand of credit cards.

q. “Merchant Bank” – A financial institution that provides credit card processing services for the

Customer or the Provider. Also herein referred to as the “acquiring bank” or “acquirer”. r. “Returned Check” – is an electronic check presented for payment which has been returned (not paid)

by the financial institution or payment processor for any reason, including but not limited to, incorrect routing number, incorrect account number, and insufficient funds.

s. “Settlement Account”– the Provider’s business account with the Merchant Bank set up for receipt

of payments via credit cards, debit cards and electronic checks. t. “VISA®” card – A card that bears the VISA symbol, enabling a VISA cardholder to obtain goods,

services or cash from a VISA merchant or acquirer. VISA is a brand of credit card and debit card operated by the VISA International Service Association of San Francisco, California, USA, an economic joint venture of financial institutions that issue and market Visa products.

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AUTHORIZATION AGREEMENT FOR DIRECT DEPOSITS/PAYMENTS (ACH CREDITS/DEBITS)

Court Name: Pendleton Municipal Court (hereinafter called Customer). Customer hereby authorizes Justice Systems, Inc. (hereinafter called Provider) to initiate credit/debit entries to Customer’s Checking Account / Savings Account (select one) indicated below at the depository financial institution named below hereafter called DEPOSITORY, and to credit/debit the same to such account. Customer acknowledges that the origination of ACH transactions to Customer’s account must comply with the provisions of U.S. law. Depository Name: City: State: Zip: ________ Routing Number: Account Number: This authorization is to remain in full force and effect until Provider has received written notification from Customer of its termination in such time and in such manner as to afford Provider and DEPOSITORY a reasonable opportunity to act on it. Name: Date: (Please Print) Signature: NOTE: WRITTEN CREDIT/DEBIT AUTHORIZATION MUST PROVIDE THAT THE RECEIVER MAY REVOKE THE AUTHORIZATION ONLY BY NOTIFYING THE ORIGINATOR IN THE MANNER SPECIFIED IN THE AUTHORIZATION.

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Verifone PayWarePC® License Agreement In conjunction with the purchase of the CitePay Terminal and software by Customer from Provider,

Customer agrees to the following software license with Verifone, Inc. IMPORTANT CAREFULLY REVIEW THIS AGREEMENT BEFORE CONTINUING THE INSTALLATION OR USE OF THE PAYWARE PC SOFTWARE ("SOFTWARE"). THIS END-USER LICENSE AGREEMENT ("AGREEMENT") IS A LEGAL AGREEMENT BETWEEN YOU (EITHER AN INDIVIDUAL OR A SINGLE ENTITY) ("YOU") AND VERIFONE, INC. (“VERIFONE”). IF YOU DO NOT AGREE TO THE TERMS OF THIS AGREEMENT, TERMINATE THIS INSTALLATION AND PROMPTLY RETURN ALL SOFTWARE AND DOCUMENTATION, IF APPLICABLE, TO THE RESELLER FROM WHOM YOU OBTAINED THE SOFTWARE (THE “RESELLER”) FOR A FULL REFUND. THE SOFTWARE INCLUDES COMPUTER SOFTWARE, THE ASSOCIATED MEDIA, ANY PRINTED MATERIALS, AND ANY "ONLINE" OR ELECTRONIC DOCUMENTATION. BY DOWNLOADING THE SOFTWARE AND/OR OPENING THE SOFTWARE PACKET(S) AND/OR USING THE SOFTWARE, YOU ACKNOWLEDGE THAT YOU HAVE READ THIS AGREEMENT, UNDERSTAND IT AND AGREE TO BE BOUND BY ITS TERMS. 1. GRANT OF LICENSE. Subject to the terms and conditions of this Agreement and your payment of the applicable license fees, VERIFONE grants You a limited, nontransferable (except as provided in Section 11 below), nonexclusive license to use the Software solely (i) in object (executable) code form, (ii) on a single computer (the "Computer"), and (iii) for your internal use only. You understand that You must comply with VERIFONE's Software registration policies and the failure to comply with those policies may result in the disablement of the Software. The Software is in "use" on a computer when it is loaded into temporary memory (i.e. RAM) or installed into permanent memory (e.g. hard disk, CD-ROM, or other storage device) of a computer. 2. COPYRIGHT. The Software and all copies provided to you are licensed and not sold. All title to the Software resides and remains in VERIFONE and its suppliers. The Software is protected by U.S. copyright laws and international copyright treaties. You may make one copy of the Software solely for backup or archival purposes. You may not copy any documentation accompanying the Software. 3. OTHER RESTRICTIONS. You may not decompile, disassemble, or otherwise reverse engineer the Software, except to the extent that the foregoing restriction is expressly prohibited by applicable law. You may not sublicense, lend, lease, donate, sell, load, pledge, or distribute (on a temporary or permanent basis) the Software. You may not use the Software for commercial time-sharing, rental, or service bureau use. 4. U.S. GOVERNMENT RESTRICTED RIGHTS. The Software is provided with RESTRICTED RIGHTS. Use, duplication, or disclosure by the Government is subject to restrictions as set forth in subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software clause at DFARS 252.227-7013 or subparagraphs (c)(1) and (2) of the Commercial Computer Software -- Restricted Rights at 48 CFR 52.227-19, as applicable. Contractor/ manufacturer is VeriFone, Inc., 2099 Gateway Place, Suite 600, San Jose, CA 95110. 5. LIMITED WARRANTY. VERIFONE warrants that the magnetic media on which the Software is contained shall be free from defects in materials and workmanship under normal use for a period of thirty (30) days after the purchase date. If you discover physical defects in the media on which the Software is distributed, VERIFONE will replace the media within that warranty period. If You are not completely satisfied with the Software, and you purchased the Software directly from VERIFONE, you may return it to VERIFONE for a refund, provided that you do so within thirty (30) days of purchase. If You purchased the Software from a Reseller, You should contact the Reseller regarding availability of a refund. 6. SUPPORT. You must purchase support for the Software for the first year after Software activation. Support may be purchased from the Reseller or from VERIFONE. Support is available from VERIFONE by telephone during the hours of 9 a.m. to 9 p.m. Eastern Time, seven days a week; these hours are subject to change. 7. NO OTHER WARRANTIES. EXCEPT FOR THE WARRANTIES PROVIDED HEREIN, THE SOFTWARE IS PROVIDED "AS IS." TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, VERIFONE DISCLAIMS ALL OTHER WARRANTIES REGARDING THE SOFTWARE, EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT OF THIRD PARTY RIGHTS. THE LIMITED WARRANTY IN SECTION 5 GIVES YOU SPECIFIC LEGAL RIGHTS. YOU MAY HAVE OTHER RIGHTS THAT VARY FROM JURISDICTION TO JURISDICTION. 8. NO LIABILITY FOR CONSEQUENTIAL DAMAGES. VERIFONE AND ALL PARTIES INVOLVED IN THE CREATION OR DELIVERY OF THE SOFTWARE TO YOU SHALL HAVE NO LIABILITY TO YOU OR ANY THIRD PARTY FOR SPECIAL, INCIDENTAL, INDIRECT, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS, GOODWILL OR SAVINGS,

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DOWNTIME, DAMAGE TO OR REPLACEMENT OF SOFTWARE AND DATA) ARISING FROM CLAIMS BASED IN WARRANTY, CONTRACT, TORT OR OTHERWISE, RELATING IN ANY MANNER TO THE SOFTWARE, EVEN IF VERIFONE OR ANY SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH CLAIM OR DAMAGE. IN ANY CASE, VERIFONE'S ENTIRE LIABILITY RELATING IN ANY MANNER TO THE SOFTWARE, REGARDLESS OF THE FORM OR NATURE OF THE CLAIM, SHALL BE LIMITED TO THE AMOUNT ACTUALLY PAID BY YOU FOR THE SOFTWARE. ANY WRITTEN OR ORAL INFORMATION OR ADVICE GIVEN BY VERIFONE'S DEALERS, DISTRIBUTORS, AGENTS OR EMPLOYEES WILL IN NO WAY INCREASE THE SCOPE OF THIS WARRANTY. BECAUSE SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF IMPLIED WARRANTIES OR LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY TO YOU. 9. TERMINATION. VERIFONE may terminate this Agreement at any time as a result of a breach by You of any of the terms or conditions herein, by giving YOU written notice of termination. Upon any termination of this Agreement, You shall immediately remove from your Computer all copies of the Software and certify to VERIFONE such removal. 10. EXPORT/LAWS. You shall fully comply with all laws and regulations of the United States and other countries relating to the export, import and use of the Software. You will defend, indemnify and hold harmless VERIFONE from and against any and all claims, proceedings, losses, damages, liabilities, fines, penalties, costs, and fees (including reasonable attorneys' fees) arising in connection with any violation of any regulation of any United States or other governmental authority relating to the use of the Software by You or your agents. 11. MISCELLANEOUS. This Agreement constitutes the entire agreement between VERIFONE and You and supersedes all prior or contemporaneous communications and proposals, whether electronic, oral or written, relating to the subject matter hereof. This Agreement will be governed by the laws of the State of California, without regard to its conflict of law provisions. Each party consents to the exclusive jurisdiction and venue of the appropriate courts in Santa Clara County, California for all disputes arising out of or relating to this Agreement. The prevailing party in any action or proceeding to enforce its rights hereunder shall be entitled to recover reasonable attorneys' fees and other reasonable costs incurred in the action or proceedings. The failure of a party to exercise or enforce any right or provision of this Agreement will not constitute a waiver of such right or provision. You may not assign this Agreement, in whole or in part, without VERIFONE’s prior written consent. Notwithstanding the foregoing, you may assign this Agreement in its entirety without VERIFONE’s consent to any entity that buys or otherwise acquires all or substantially all of Your assets, provided You give VERIFONE written notice of such assignment. If any provision of this Agreement is found by a court of competent jurisdiction to be invalid, the parties agree that the court should endeavor to give the maximum effect to the parties' intentions as reflected in the provision, and that the other provisions of the Agreement shall remain in full force and effect. In addition to those obligations that have accrued prior to termination, Sections 3, 4 and 7 through 11 shall survive any termination of this Agreement. All notices, demands, or consents required or permitted hereunder shall be in writing and shall be delivered in person or sent via overnight delivery or certified mail to the respective parties. Notices for VERIFONE shall be sent to VERIFONE’s Corporate Legal Director at 2099 Gateway Place, Suite 600, San Jose, CA 95110 or such other address as shall have been given to You in writing. Notices for You shall be sent to the address in VERIFONE’s customer database, or such other address as shall have been given to VERIFONE in writing. Such notices shall be deemed effective upon the earliest to occur of: (i) actual delivery; or (ii) three days after mailing, addressed and postage prepaid, return receipt requested. Rev. 11/26/07 © Copyright 2010. VeriFone, Inc. All Rights Reserved.

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CITY COUNCIL WORK SESSION

Date Submitted: Type of Action Requested: Subject:03/24/2017 ResolutionDate Action Requested: Ordinance04/04/2017 Formal Action/MotionAttachments: (list) - Draft IOF Agreement- CoP Paving Estimate- 2016 Hill Meat MOU

Other: Guidance

Approve Mayor to Execute Immediate Opportunity Fund (IOF) Agreement No. 31727 for NW 50th Street & NW F Avenue Industrial Road Improvements


FROM: Bob Patterson, Public Works DirectorRobb Corbett, City ManagerTim Simons, Community Development Director

RECOMMENDATION:Staff requests City Council authorize the Mayor to execute the attached State of Oregon Immediate Opportunity Fund (IOF) Agreement on behalf of Hill Meat Company and City of Pendleton for a paved roadway for NW 50th and NW F Avenue for 50% of the cost, to not exceed $118,425.

DISCUSSION: City Council authorized Mayor Houk to execute an Application and associated paperwork for IOF for roadway improvements along the Hill Meat Company property in NW 50th Street and other East Airport Industrial Area Right-of-Ways on January 19, 2015.

City, State, and Hill Meat Company representatives have worked on funding issues concerning water system improvements for Hill Meat Company’s expansion project and 2/3rd city industrial street improvement requirements. Water system improvements were complete last year. ROW improvements have taken longer to work through the State system. City’s engineering estimate was $236,850 for the roadway alignment shown in Attachment A.

Hill Meat’s Project qualified the City to be eligible for a grant of up to $250,000 and 50% of the improvement costs for constructing City standard industrial roadways. City also has $880,000 in HB2001 grant funds available for industrial roadway improvements from an original allotment of $2,200,000 by the State of Oregon – these funds are targeted to industrial roadway improvements in the Airport Industrial Area. Staff asked the State if these funds can be used as the local match for the IOF fund request, they reviewed the request, and conveyed that grant funds cannot be applied to another grant funding consideration.

City of Pendleton is the adjoining property owner and fronts the entirety of the proposed roadway improvements. With Council consideration and approval, City would provide the necessary IOF match.

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FISCAL IMPACT:

City budgeted $250,000 in FY17 for this project.

These improvements, along with other roadway improvements using the $880,000 HB2001 funds still available, will be completed this construction season.

City has a water line project planned in NW 49th Street to increase capacity to other available properties currently vacant in the area. Staff is finishing the design and will be out to bid in the near future. The water line work is expected to be completed in FY17, or by June 30, 2017. Paving projects will follow and be done this construction season in FY18, or after July 1, 2017.

ALTERNATIVES:1) Approve IOF Agreement for execution by Mayor; or2) Take no action.

Approved by City Manager

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MEMORANDUM OF UNDERSTANDINGBETWEEN THE

HILL MEAT COMPANY AND CITY OF PENDLETONREGARDING

SPECIAL PUBLIC WORKS FUNDS AND IMMEDIATE OPPPORTUNITY FUNDS

1. Date of Memorandum of Understanding

1.1 The date of this Memorandum of Understanding is January 20, 2016.

2. Parties to Memorandum of Understanding

2.1 Hill Meat Company and the City of Pendleton are the two parties to thisMemorandum of Understanding.

3. Recitals

3.1 Hill Meat Company and City of Pendleton recognize the need to upgrade thecity’s water service delivery to the comer of NW F Avenue and NW 50"‘Street to provide thenecessary utility water service for Hill Meat Company’s expansion project. Both parties alsorecognize the requirements to complete a 2/3”city industrial street improvement to the frontageof Hill Meat Company‘s property along NW 50"‘Street.

3.2 Hill Meat Company understands that the necessary improvements are to be paidby the developer. Hill Meat Company and City of Pendleton understand assistance for thesenecessary improvements can be received from the State of Oregon through job creation andspecial roadway improvement funds.

3.3 Hill Meat Company and City of Pendleton will put together the necessaryinformation justifying a Special Public Works Fund (SPWF) grant/loan from the InfrastructureFinance Authority (IFA) for the construction of water line improvements in public Right-of-Wayto serve the Hill Meat Company expansion project and for updated electrical service and back—upgenerator installation at the Airport Booster Station to serve the existing East Airport IndustrialArea. The water line improvements are shown in the attached as “Alternative 1 — RequiredPiping without Pump Station Upgrades.”

3.4 Hill Meat Company and City of Pendleton will put together the necessaryinformation justifying an Immediate Opportunity Fund grant from Oregon Department ofTransportation for the construction of city standard industrial roadway in the public Right—of-Way (ROW) of NW 50”‘fronting the Hill Meat Company property and for use on other EastAirport Industrial Area ROW as the grant funding will allow.

3.5 Hill Meat Company will work with its engineer and contractor to establish thequalifying design and construction of the water line improvements meeting with City ofPendleton approval. Hill Meat Company will have its engineer and contractor complete all work

1 — Hill Meat Company / City of Pendleton MOUPage 47 of 69

in accordance with established City of Pendleton construction standards and any and allrequirements of the IFA.

3.6 City of Pendleton will complete the design and bid the construction work for theupdated electrical service and back-up generator installation and the city standard industrialstreet improvements.

3.7 City of Pendleton is the Applicant/Recipient of the SPWF grant/loan and IOFgrant funds.

3.8 The SPWF grant/loan will be in the amount of $1 70,000 and any matchrequirement will come from the city’s Water Fund. Grant ?mding is available based on HillMeat Company job creation in the amount of $5,000 per new employee. It is estimated up to 30new jobs will be created for eligibility of up to $150,000. This grant ?rnding will be applied to

100% of Hill Meat Company’s necessary water line improvements outlined in Recital 3.3.

3.9 The IOF grant to be applied for will be in the amount of $250,000 and will beused for NW 50”‘Street and other East Airport Industrial Area ROW.

3.10 The award of the SPWF was predicated on “economic development” as

represented by Hill Meat Cornpany’s job growth.

4. Application and Administration

4.1 City of Pendleton is the applicant for the funds and will be agency administeringthe funds.

4.2 Hill Meat Company will submit for reimbursement to the City of Pendleton forcosts associated with engineering and construction of the water line performed under Recital 3.5.

4.3 City of Pendleton will reimburse Hill Meat Company upon receipt of ?mds fromState of Oregon IFA / ODOT for work performed in that pay period submittal.

5. Audit

5.1 After project completion and a future audit under IFA requirements, if Hill Meat

Company is found to be de?cient in its job creation impact, Hill Meat Company agrees to

reimburse the City of Pendleton the amount IFA proves needs to be retumed as a product oflesser job creation than projected for that portion of the project identi?ed in Recital 3.3 & 3.5.

5.2 City of Pendleton will not absorb the deficiency in job creation impact if found byIFA.

6. Miscellaneous

7.1 This Memorandum of Understanding constitutes the entire agreement among theparties and supersedes all prior oral or written agreements, understandings, representations andwarranties, and courses of conduct and dealings between the parties on the subject matter hereof.

2 — Hill Meat Cornpany/ City of Pendleton MOUPage 48 of 69

Except as otherwise provided herein, this Memorandum of Understandingmay be amended ormodi?ed only by a writing executed by all the parties.

7.2 This Memorandum of Understanding may be executed in one or morecounterparts each of which will be deemed to be an original copy and all of which when takentogether will be deemed to constitute one and the same agreement.

In acceptance of the key elements outlined above, the undersigned agree to them beingthe basis of the development relationship between the Hill Meat Company and City of Pendleton.

For City of Pendleton: For Hill Meat Company:

4%A/?awéK

Phillip ouk, MayorA"

Y

e Sorensen,President

Andrea Denton, City Recorder

3 — Hill Meat Co1npany/ City of Pendleton MOUPage 49 of 69

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Page 50 of 69

CITY OF PENDLETON ESTIMATEPROJECT NW 50th Street and NW F AvenuePROJECT DETAIL Street Paving and Re-construction

DATE: 6/03/2016 By: wcg

1UNIT

IKE QUAN. UNITS PRICE TOTAL1

1 $16,500.00 $16,500.002 Traffic control $5,000.00 $5,000.003 Excavation 1200.00 $12.00 $14,400.004 Geotextile Fabric 800.00 $0.78 $624.005 3/4" - 0" Base Rock 860.00 $27.00 $23,220.006 Level IIIHMAC 1/2" 1040.00 $80.00 $83,200.007 Level IIIHMAC 1/2" Approache 150.00 $90.00 $13,500.008 Drainage LS $15,000.009 Utilit Ad'ustments LS $4,000.00

TOTALS $175,444.00Engineering and Contingency 35% $61,405.40

Project Total $236,849.40

fzcwoza: 04/.96/6Zx?t,/zesr /2/31/lé

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Misc. Contracts and AgreementsNo. 31727

IMMEDIATE OPPORTUNITY FUND AGREEMENTHill Meat CompanyCity of Pendleton

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

RECITALS

1. The Oregon Transportation Commission ("OTC") at its July 15, 1988, meeting approved establishing an Immediate Opportunity Fund ("IOF") to support primary economic development in Oregon through the construction and improvement of streets and roads. The OTC, at its meeting on March 19, 2015, revised the guidelines for the use of this fund. IOF funds are limited to: Type A) specific economic development projects that affirm job retention and job creation opportunities; Type B) revitalization of business or industrial centers to support economic development; Type C) preparation of Oregon certified project-ready industrial sites; and Type D) preparation of regionally significant industrial areas.

2. The OTC at its July 21, 2016, meeting approved Type A Immediate Opportunity Fund (IOF) grant, for 50% of the Total Estimated Project costs not to exceed $118,425.00, to the City of Pendleton for the purpose of making roadway and intersection improvements on Northwest F Avenue and Northwest 50th Street to provide adequate transportation infrastructure in support of the expansion of Hill Meet Company.

3. Northwest F Avenue and Northwest 50th Street are a part of the city street system under the jurisdiction and control of city

4. By the authority granted in Oregon Revised Statute (ORS) 190.110, 366.572 and 366.576, State may enter into cooperative agreements with counties, cities and units of local governments for the performance of work on certain types of improvement projects with the allocation of costs on terms and conditions mutually agreeable to the contracting Parties.

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

TERMS OF AGREEMENT

1. Agency agrees to make roadway improvements near the future expansion of Hill Meat Company that meets the IOF criteria. The improvements will consist of paving and drainage improvements on NW F Avenue in order to bring the road into conformity with City of Pendleton’s Industrial standards. Improvements will also consist of paving the existing gravel surface on NW 50th Street to reduce

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Agency/StateAgreement No.31727

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maintenance and repair costs as well as increase safety, and accommodate increased traffic volumes, hereinafter referred to as "Project”. The location of the Project is approximately as shown on the sketch map attached hereto, marked "Exhibit A," and by this reference made a part hereof.

2. The Oregon Business Development Department (OBDD) recommends use of Immediate Opportunity Funds for this Project. State agrees to provide 50 % of the cost of the Project in Immediate Opportunity Funds not to exceed $118,425.00, to help finance the Project. Agency and/or others will provide the remaining Project funding.

3. This Agreement is effective on the date all required signatures are obtained and shall terminate upon completion of the Project and receipt of documentation of filled and created positions outlined under Agency obligations or ten (10) calendar years whichever is sooner.

STATE OBLIGATIONS

1. State shall, at its own expense, assign a Project liaison to monitor work performed. State shall review all environmental documents, Project plans, specifications, and cost estimates prepared by Agency or its consultants within twenty (20) working days of submittal by Agency and before advertisement of construction bids.

2. The total estimated cost of the Project is $236,849.00, of which State shall provide IOF funding of not more than 50% of the Project cost, not to exceed $118,425.00. Agency shall be responsible for the remaining costs over the IOF funding.

3. Once construction is underway, State shall as soon as practically possible and within 45 days following receipt of approved monthly itemized invoices, reimburse Agency for 50 percent of the eligible Project construction costs incurred until the total of $118,425.00 of approved IOF Funds has been paid to Agency or until Project is completed, whichever occurs first.

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

5. State’s Project Manager for this Project is Mike Barry, Local Agency Liaison, 3012 Island Avenue, La Grande, Oregon 97850. Phone: (541) 963-1353, [email protected], or assigned designee upon individual’s absence. State shall notify the other Party in writing of any contact information changes during the term of this Agreement.

AGENCY OBLIGATIONS

1. Agency, or its consultant, shall conduct the necessary preliminary engineering and design work required to produce final plans, specifications and cost estimates;

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mailto:[email protected]


3

obtain all required permits; arrange for all utility relocations or reconstruction; perform all construction engineering, including all required materials testing and quality documentation; prepare all bid documents; provide Project management services, and other necessary functions for sole administration of the contract.

2. Agency shall advertise and award all contracts, and pay all contractor costs. Within two (2) years after the Agreement execution date, unless granted an extension by State, Agency shall award a contract for construction of Project. Construction must be completed within five (5) years of the Agreement date. If either time limit expires, this Agreement shall terminate immediately with all Parties.

3. Agency shall ensure that State’s contribution of fifty (50) percent of the actual road construction costs, not to exceed $ 118,425.00, will be applied to preliminary engineering, right of way acquisition and construction only. Agency shall be responsible for funding the remaining Project costs.

4. Agency shall submit to the assigned State Project Liaison all environmental documents, Project plans, specifications and cost estimates before advertisement for construction bids.

5. Agency shall lay out and paint the necessary lane lines and erect the required directional and traffic control signing for the Project.

6. Agency shall obtain all required state and federal permits, including any environmental permits, and shall comply with all terms of said permits.

7. Agency agrees and understands that Agency will comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, ORS Chapter 35 and the State Right of Way Manual if right-of-way acquisition is necessary.

8. Agency or its consultant shall acquire all necessary right of way in accordance with and in compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, ORS Chapter 35 and the ODOT Right of Way Manual. Certification of right of way acquisition work must be made by the Agency (or on behalf of its consultant) doing the work. If Agency acquires the right of way, they shall provide a letter from Agency’s legal counsel certifying that 1) the right of way needed for the Project has been obtained and 2) right of way acquisition has been completed in accordance with the right of way requirements contained in this Agreement. The certification form shall be routed through the State’s Region 5 Right of Way Office for co-signature and possible audit. If Agency elects to have State perform right of way functions, a separate agreement shall be executed between Agency and State right of way, referencing this Agreement number.

9. If Agency enters into a construction contract for performance of work on the Project, then Agency will require its contractor to provide the following:

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4

a. Contractor shall indemnify, defend and hold harmless State from and against all claims, suits, actions, losses, damages, liabilities, costs and expenses of any nature whatsoever resulting from, arising out of, or relating to the activities of Contractor or its officers, employees, subcontractors, or agents under the resulting contract.

b. Contractor and Agency shall name State as a third party beneficiary of the resulting contract.

c. Commercial General Liability. Contractor shall obtain, at Contractor’s expense, and keep in effect during the term of the resulting contract, Commercial General Liability Insurance covering bodily injury and property damage in a form and with coverages that are satisfactory to State. This insurance will include personal and advertising injury liability, products and completed operations. Coverage may be written in combination with Automobile Liability Insurance (with separate limits). Coverage will be written on an occurrence basis. If written in conjunction with Automobile Liability the combined single limit per occurrence will not be less than $ 1,000,000 for each job site or location. Each annual aggregate limit will not be less than $ 2,000,000.

d. Automobile Liability. Contractor shall obtain, at Contractor’s expense, and keep in effect during the term of the resulting contract, Commercial Business Automobile Liability Insurance covering all owned, non-owned, or hired vehicles. This coverage may be written in combination with the Commercial General Liability Insurance (with separate limits). Combined single limit per occurrence will not be less than $1,000,000.

e. Additional Insured. The liability insurance coverage, except Professional Liability, Errors and Omissions, or Workers’ Compensation, if included, required for performance of the resulting contract will include State and its divisions, officers and employees as Additional Insured but only with respect to Contractor’s activities to be performed under the resulting contract. Coverage will be primary and non-contributory with any other insurance and self-insurance.

f. Notice of Cancellation or Change. There shall be no cancellation, material change, potential exhaustion of aggregate limits or non-renewal of insurance coverage(s) without thirty (30) days written notice from Contractor’s or its insurer(s) to State. Any failure to comply with the reporting provisions of this clause will constitute a material breach of the resulting contract and will be grounds for immediate termination of the resulting contract and this Agreement.

10.All employers, including Agency, that employ subject workers who work under this Agreement in the State of Oregon shall comply with ORS 656.017 and provide the required Workers’ Compensation coverage unless such employers are exempt under ORS 656.126. Employers Liability insurance with coverage limits of not less than $500,000 must be included. Agency shall ensure that each of its subcontractors complies with these requirements.

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11.Agency shall keep accurate cost accounting records. Agency shall prepare and submit monthly itemized, progress reports and invoices for construction directly to State’s Project Manager for review and approval. Such invoices will be in a form identifying the Project, the agreement number, the invoice number or the account number or both, and will itemize all expenses for which reimbursement is claimed.

12.Agency agrees that should any environmental or land-use issues arise at any time during the development or construction of the Project, State may, at its discretion and when exercised in good faith, suspend payments until it is satisfied that the issue has been resolved. However, Agency may use its own funds to continue the Project and shall be reimbursed by State as provided for in this Agreement once State is satisfied that the issue has been resolved.

13.Agency shall, at its own expense, maintain and operate the Project upon completion at a minimum level that is consistent with normal depreciation and/or service demand. Maintenance responsibilities shall survive termination of this Agreement and upon completion of Project and submission of documentation under Agency Obligation 17 Job Growth Assessment.

14.Agency shall submit to State any change orders that substantially change the plans and specifications or the submitted scope of work as approved by the OTC and as identified in this Agreement.

15.Agency shall require its contractor(s) and subcontractor(s) that are not units of local government as defined in ORS 190.003, if any, to indemnify, defend, save and hold harmless the State of Oregon, Oregon Transportation Commission and its members, Department of Transportation and its officers, employees and agents from and against any and all claims, actions, liabilities, damages, losses, or expenses, including attorneys’ fees, arising from a tort, as now or hereafter defined in ORS 30.260, caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of Agency's contractor or any of the officers, agents, employees or subcontractors of the contractor ("Claims"). It is the specific intention of the Parties that State shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the State, be indemnified by the contractor and subcontractor from and against any and all Claims.

16.Any such indemnification shall also provide that neither Agency's contractor and subcontractor nor any attorney engaged by Agency's contractor and subcontractor shall defend any claim in the name of the State of Oregon or any agency of the State of Oregon, nor purport to act as legal representative of the State of Oregon or any of its agencies, without the prior written consent of the Oregon Attorney General. The State of Oregon may, at anytime at its election assume its own defense and settlement in the event that it determines that Agency's contractor is prohibited from defending the State of Oregon, or that Agency's contractor is not adequately defending the State of Oregon's interests, or that an important governmental principle is at issue or that it is in the best interests of the State of Oregon to do so.

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The State of Oregon reserves all rights to pursue claims it may have against Agency's contractor if the State of Oregon elects to assume its own defense.

17.Because the purpose of the IOF Type A project is to promote job growth, State wishes to assess its investment.

a. Therefore, within 60 months (5 years) after expansion of Hill Meat Company, Agency shall provide to State documentation from Hill Meat Company that 19 full-time equivalent positions (FTE) have been created and filled by the expansion of Hill Meat Company. If such documentation cannot be provided within the above stated time limit, Agency shall reimburse State all IOF Funds distributed to Agency as outlined below.

b. The targeted number of new FTE positions is the number approved by the OTC. "New FTE positions” shall mean new positions created, filled and remaining on the payroll for at least one (1) year.

c. The verification documentation shall be a letter on company letterhead signed by an official of Hill Meat Company duly authorized to represent Hill Meat Company certifying the number of new FTE positions. State, OBDD or the Oregon Secretary of State Audits Division, shall have the right to audit the payroll records of Hill Meat Company in order to confirm information in the letter.

d. If the documentation shows a deficiency in the number of FTE positions, Agency shall reimburse State on a pro-rated basis. The formula for the pro-rated amount of IOF funds paid to Agency will be an amount equal to the number of actual FTE positions divided by the number of projected FTE positions multiplied by total IOF funds available. Reimbursement will be the amount actually distributed less the pro-rated amount.

23. Reimbursements resulting from a failure to provide job documentation, failure to meet job target goals or failure to obtain Project Site Certification shall be paid within three (3) months after the above stated time limit.

a. All said reimbursements shall include interest equal in rate for the Highway Trust Fund at the State Treasury established on the date of execution of this Agreement. Interest shall accrue from the date of the first withdrawal from the Highway Trust Fund at the State Treasury.

b. Agency may wish to enter into a separate agreement with Hill Meat Company to address pay back of Agency reimbursements to State resulting from Hill Meat Company’s failure to provide documentation or failure to meet job target goals.

c. At Agency’s request and upon consultation with OBDD, State may grant a time extension on the reimbursement or a time extension to provide additional job growth. Any extension will only be effective upon amendment to this Agreement.

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18.Agency acknowledges and agrees that State, the Oregon Secretary of State’s Office, the federal government, and their duly authorized representatives shall have access to such fiscal records and other books, documents, papers, plans and writings of Agency that are pertinent to this Agreement to perform examinations and audits and make excerpts and transcripts. Agency shall retain and keep all files and records for a minimum of six (6) years after completion of the Project.

19.Agency shall comply with all federal, state, and local laws, regulations, executive orders and ordinances applicable to the work under this Agreement, including, without limitation, the provisions of ORS 279C.505, 279C.515, 279C.520, 279C.530 and 279B.270 incorporated herein by reference and made a part hereof. Without limiting the generality of the foregoing, Agency expressly agrees to comply with (i) Title VI of Civil Rights Act of 1964; (ii) Title V and Section 504 of the Rehabilitation Act of 1973; (iii) the Americans with Disabilities Act of 1990 and ORS 659A.142; (iv) all regulations and administrative rules established pursuant to the foregoing laws; and (v) all other applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations.

20.Agency shall not enter into any subcontracts for any of the work scheduled under this Agreement without obtaining prior written approval from State.

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

22.Agency’s Project Manager for this Project is Bob Patterson, Public Works Director, City of Pendleton, 500 SW Dorion Avenue, Pendleton, Oregon 97801. Phone: 541.966.0202, [email protected], or assigned designee upon individual’s absence. Agency shall notify the other Party in writing of any contact information changes during the term of this Agreement.

GENERAL PROVISIONS

1. This Agreement may be terminated by mutual written consent of both Parties.

2. State may terminate this Agreement effective upon delivery of written notice to Agency, or at such later date as may be established by State, under any of the following conditions:

a. If Agency fails to provide services called for by this Agreement within the time specified herein or any extension thereof.

b. If Agency fails to perform any of the other provisions of this Agreement, or so fails to pursue the work as to endanger performance of this Agreement in accordance with its terms, and after receipt of written

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notice from State fails to correct such failures within ten (10) days or such longer period as State may authorize.

c. If Agency fails to provide payment of its share of the cost of the Project.

d. If State fails to receive funding, appropriations, limitations or other expenditure authority sufficient to allow State, in the exercise of its reasonable administrative discretion, to continue to make payments for performance of this Agreement.

e. If federal or state laws, regulations or guidelines are modified or interpreted in such a way that either the work under this Agreement is prohibited or State is prohibited from paying for such work from the planned funding source.

3. Any termination of this Agreement shall not prejudice any rights or obligations accrued to the Parties prior to termination.

4. If any third party makes any claim or brings any action, suit or proceeding alleging a tort as now or hereafter defined in ORS 30.260 ("Third Party Claim") against State or Agency with respect to which the other Party may have liability, the notified Party must promptly notify the other Party in writing of the Third Party Claim and deliver to the other Party a copy of the claim, process, and all legal pleadings with respect to the Third Party Claim. Each Party is entitled to participate in the defense of a Third Party Claim, and to defend a Third Party Claim with counsel of its own choosing. Receipt by a Party of the notice and copies required in this paragraph and meaningful opportunity for the Party to participate in the investigation, defense and settlement of the Third Party Claim with counsel of its own choosing are conditions precedent to that Party's liability with respect to the Third Party Claim.

5. With respect to a Third Party Claim for which State is jointly liable with Agency (or would be if joined in the Third Party Claim), State shall contribute to the amount of expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Agency in such proportion as is appropriate to reflect the relative fault of State on the one hand and of Agency on the other hand in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of State on the one hand and of Agency on the other hand shall be determined by reference to, among other things, the Parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. State’s contribution amount in any instance is capped to the same extent it would have been capped under Oregon law, including the Oregon Tort Claims Act, ORS 30.260 to 30.300, if State had sole liability in the proceeding.

6. With respect to a Third Party Claim for which Agency is jointly liable with State (or would be if joined in the Third Party Claim), Agency shall contribute to the amount of

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expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by State in such proportion as is appropriate to reflect the relative fault of Agency on the one hand and of State on the other hand in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of Agency on the one hand and of State on the other hand shall be determined by reference to, among other things, the Parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. Agency's contribution amount in any instance is capped to the same extent it would have been capped under Oregon law, including the Oregon Tort Claims Act, ORS 30.260 to 30.300, if it had sole liability in the proceeding.

7. The Parties shall attempt in good faith to resolve any dispute arising out of this Agreement. In addition, the Parties may agree to utilize a jointly selected mediator or arbitrator (for non-binding arbitration) to resolve the dispute short of litigation.

8. Agency agrees to refund to State all Immediate Opportunity Funds paid to Agency in connection with this Project if this Agreement is terminated for any reason prior to completion of Project and receipt of job assessment documentation. Refund to State shall be within three (3) months from termination date.

9. State and Agency hereto agree that if any term or provision of this Agreement is declared by a court of competent jurisdiction to be invalid, unenforceable, illegal or in conflict with any law, the validity of the remaining terms and provisions will not be affected, and the rights and obligations of the Parties shall be construed and enforced as if the Agreement did not contain the particular term or provision held to be invalid.

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

11.This Agreement and attached exhibits constitute the entire agreement between the Parties on the subject matter hereof. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Agreement. No waiver, consent, modification, or change of terms of this Agreement shall bind either Party unless in writing and signed by both Parties and all necessary approvals have been obtained. Such waiver, consent, modification, or change, if made, shall be effective only in the specific instance and for the specific purpose given. The failure of State to enforce any provision of this Agreement shall not constitute a waiver by State of that or any other provision.

THE PARTIES, by execution of this Agreement, hereby acknowledge that their signing representatives have read this Agreement, understand it, and agree to be bound by its terms and conditions.

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CITY OF PENDLETON, by and through its elected officials

By _______________________________Mayor (or other assigned designee)

Date _____________________________

By _______________________________City Recorder (or other assigned designee)

Date _____________________________

APPROVED AS TO LEGAL SUFFICIENCY

By _______________________________Agency Counsel

Date _____________________________

Agency Contact:Bob Patterson, PEPublic Works DirectorCity of Pendleton500 SW Dorion AvenuePendleton, Oregon 97801541.966.0202 (office)[email protected] State Contact:Mike Barry, Local Agency LiaisonOregon Department of Transportation3012 Island AvenueLa Grande, Oregon [email protected]

STATE OF OREGON, by and through its Department of Transportation

By __________________________Region 5 Manager

Date ________________________

APPROVAL RECOMMENDED

By __________________________Region 5 Right of Way Manager

Date _________________________

APPROVED AS TO LEGAL SUFFICIENCY

By ___N/A _______________________Assistant Attorney General

Date________________________

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EXHIBIT A – Project Location Map

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Date Submitted: Type of Action Requested: Subject: 3/27/17 ResolutionDate Action Requested: Ordinance #4/4/17 Formal Action/MotionAttachments: (list)

Other

Preliminary consideration to determine if vacating a pedestrian/utility easement is in the public’s interest.


FROM: George Clough, City Planner

RECOMMENDATION: Place Vacation request before the Planning Commission for review and recommendation to City Council.

DISCUSSION: 2007 Transportation System Plan (TSP) adoption included pedestrian connectivity for block lengths of greater than 2,000 feet; whereby, neighborhood connectivity could be provided without building a full street.

The original Sunridge Estates subdivision had proposed connecting SW Sheridan Avenue through the middle of the subdivision. Upon adoption of the TSP, SW Sheridan Avenue was removed, as unbuildable, do to extreme slope (18%-22%), in favor of a 5-foot pedestrian / utility easement for connectivity and for overall local improvement district (LID) savings. This added additional lots in lieu of street right-of-way to benefit with LID payback. Planning Commission approved this modification and the subdivision was platted as described. The decision did not require immediate construction action or maintenance agreements to be put in place for the lots abutting the pedestrian easement. Due to the topographical challenges of the lots being developed, owners have requested vacation of the easement.

The Vacation Ordinance requires a review by City Council, then forward to Planning Commission for their consideration of a recommendation to the City Council for vacation.

FISCAL IMPACT: The City has no resources at this time to construct a pathway or maintain a pathway once constructed. No pathway construction or maintenance agreements are in place for the abutting lots, construction and maintenance costs associated with a pedestrian pathway could default to the City.

ALTERNATIVES: Determine that five-foot pedestrian/utility easement is in public’s best interest, which results in maintaining the easement.Approved by: City Manager

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MemoTo: Robb CorbettFrom: Bob Pattersoncc:Date: March 28, 2017Re: Pendleton Sanitary Service: 2.1% rate increase effective April 1, 2017

Greetings Robb and City Councilors,

Pendleton Sanitary Service Incorporated will exercise a rate increase of 2.1% April 1, 2017, in accordance with Resolution 2590 adopted by the City Council in late-2014.

Solid Waste Advisory Board (SWAB) held their annual 1st quarter meeting with Pendleton Sanitary Service Incorporated (PSSI) on Wednesday, March 22, 2017. 4 of the 5 SWAB members were present, along with Susan and Mike McHenry representing PSSI.

The meeting summary will posted on the city’s website by the close of Friday, April 13, 2017.

PSSI demonstrated they are financially sound, but will need to increase rates to cover future forecasted expenses. They have not had a rate increase since 2014 and also have not exercised the annual rate increase option until this year.

PSSI will implement an annual rate increase based on the 2016 Portland Urban Consumer Price Index of 2.1%. There are three reasons:

1) In 2016, much needed replacement equipment was purchased; 2) Recycling inventory built up on-site did not provide the forecasted revenue

stream due to market conditions; and3) Landfill tippage fees were increase in 2015, adding about $20,000 annually to

expenses.Per Resolution 2590, PSSI, at their discretion, has the option to implement an annual CPI adjustment on April 1st of each year.

Solid Waste Advisory Board supports this rate increase.

FYI,Bob

City of PendletonPublic Works Department

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CITY OF PENDLETON

October Activities Report

To: City Council

From: Robb Corbett, City Manager

Date: March 30, 2017

Activities performed/events for the past month

Union Negotiations: IAFF and PCPA Coffee with the City Met with ODFW representatives regarding boat ramp Attended PNNL Media Day at the airport Joint meeting with CTUIR Progress Board meeting Met with River Quarter Committee member regarding changes to the RQ policy CDBG Grant Training (Low Income Housing Rehab Grant) Budget preparations Monthly Joint Tourism Coffee

Notes:

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