NOTICE OF PUBLIC MEETING CITY OF ALBANY OUR MISSION IS CITY COUNCIL WORK SESSION "Providing quality public services Municipal Court Room for a better Albany community. " 333 Broadalbin St reet SW OUR VISION IS Monday, March 6, 2 017 "A vital and diversified community Ji!Jj

Rules of Conduct for Public Meetings

1. No person shall be disorderly, abusive, or disruptive of the orderly conduct of the meeting.

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

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

4. There shall be no audience demonstrations such as applause, 4:00 p.m. CALL TO ORDER cheering, display of signs, or other conduct disruptive of the meeting. 4:00 p.m. ROLL CALL

4:05 p.m. BUSINESS FROM THE PUBLIC

4: 10 p.m. HYDRO POWER COST/BENEFIT COMPARISON - Mark Yeager [Pages 2-5]. Action Requested: Information, discussion, direction.

4:50 p.m. UPDATE ON STRATEGIC ENERGY MANAGEMENT PROJECT-Jorge Salinas [Pages 6-33] Action Requested: Information, discussion.

5:10 p.m. INTERGOVERNMENTAL AGREEMENT WITH LINN COUNTY -Jorge Salinas [Pages 34-35] Action Requested: Discussion, direction.

5:25 p.m. BRANDIS PROPERTY/GAPS- Wes Hare [Verbal]. Action Requested: Information, discussion, direction.

5:45 p.m. BUSINESS FROM THE COUNCIL

5:55 p.m. CITY MANAGER REPORT

6:00 p.m. ADJOURNMENT

City ofAlbany Website: www.cityof(zlbanv.net

The location ofthe meeting/hearing is accessible to the disabled. Ifyou have a disability that requires accommodation, advanced notice is requested by notifying the City Manager's Office at 541-917-7508, 541-704-2307, or 541-917-7519. TO: Albany City Council

VIA: Wes Hare, City Manager '\":< c7\/Jjcihii Jeff Blaine, P.E., Public Works Engineering and Community Development Directorqy ------71• Chris Bailey, Public Works Operations Director /""

FROM: Mark A. Yeager, P .E., CWRE, Utility Services Manage@

DATE: March 1, 2017, for the March 6, 2017, City Council Work Session

SUBJECT: Hydropower Program Status

RELATES TO STRATEGIC PLAN THEME: • Effective Government

Action Requested:

Staff is seeking Council authorization to research, identify, and propose options for reducing or eliminating the regulatory burden associated with hydropower operations, to determine whether continued operation of the hydropower project (Project) is sustainable.

Discussion:

Background

The City of Albany purchased its current water system from Pacific Power and Light in 1984. The purchased property included the Santiam-Albany Canal (Canal) and, as part of the Vine Street Treatment Plant, a 1 megawatt (MW) hydropower system. At the time of purchase, the Canal and system had been in operation for nearly a century and were not under Federal Energy Regulatory Commission (FERC) jurisdiction. In the early 1990s, following a petition from third parties, a determination was made that the Canal is a "Water of the United States," and, therefore, a federal license would be required for continued operation of the Project. The City appealed the determination to FERC with the assistance of Senator Mark Hatfield's office, but was unsuccessful.

In light of that determination, the City ceased power generation in 1991, evaluated the costs and benefits of pursuing a license and new generation facilities, and began the process of developing studies and license application materials. The City's cost studies at the time showed that the Project would not initially be a net revenue generator. However, the City determined that benefits could be provided to the community by generating revenue to help offset costs, by helping fund otherwise-required improvements such as fish screens on the Canal and maintaining valuable water rights associated with the hydropower system.

Given that the FERC operating license would be valid for 50 years, pursuing a federal license for continued operation seemed appropriate. FERC issued a Minor Power Project license in 1998, and the Project definition included the hydropower generation facilities located at the Vine Street Treatment Plant as well as the entire 18 miles of the Canal and all its associated diversion and conveyance facilities. In addition to installing new power generation equipment, Albany invested in capital improvement projects at the diversion dam and intake facilities to rehabilitate and upgrade them and comply with regulatory requirements, many of which were not related to having a FERC license. Albany commissioned the new 500 kilowatt (KW) hydropower project in 2008.

2 City Council Page 2 March 1, 2017 for the March 6, 2017 Work Session

Revenue History

The average annual revenue from power generation over the last five (5) years is just over $84,000 per year. The highest annual revenue in that time was $141,000 and the lowest annual revenue was $50,100.

A number of variables affect the ability to generate power. The power license stipulates the conditions under which water can be diverted from the South Santiam River for power generation. If there is insufficient flow in the River, water cannot be diverted to generate power. In addition, there must be sufficient head available at the turbine, and if the Calapooia River is experiencing high water levels, the turbine cannot be operated. There are also circumstances when the generator and associated equipment experience a mechanical breakdown that causes shutdown of the generator. Unplanned events in the Canal, such as a partial bank failure, or planned Canal maintenance work that is time sensitive, may result in reduced flows that also impact power production.

Staff has made a concerted effort to maximize power production days over the last few years in an effort to maximize revenues. Despite this effort, during months of sufficient flow in the Santiam River, the generator only produced power approximately 68 percent of the time during the last five (5) years.

Expenses

Since FERC's issuance of the Project license, the regulatory landscape has changed considerably. In addition to complying with the provisions of the license articles, Albany has faced new and expanding regulatory initiatives related to environmental protection, dam safety, emergency management, and recreational studies, primarily associated with the Canal and its appurtenances. Expenses related to operation of the hydropower facilities and the Project can be broken down into four (4) major categories:

• Engineering and Operations staff time dedicated to working with FERC staff, responding to requests for information, preparing and filing annual reports related to the license, hiring consultants to complete required studies, facilitating annual dam safety inspections, updating the Emergency Action Plan (EAP), etc. ($135,000 per year). • Direct expenses related FERC-required studies including Potential Failure Mode Analysis (PFMA), inundation mapping, geotechnical analyses, etc. ($45,000, 3-year average). • Direct annual costs associated with operation and maintenance of the hydropower equipment (turbine, generator, bar screen, gates, penstock, etc.), and daily and weekly requirements for operating and maintaining the Canal, which is part of the Project, to meet specific FERC requirements ($104,000 per year, 3-year average). · • Impacts on otherwise-needed capital maintenance and repair projects on the Canal that are burdened by delays due to FERC review time, excessive standards for design and construction that drive up facility costs (such as planning for 500-year flood events and 2,500-year earthquake recurrence), and required reviews for any construction near the Canal (even if the proposed project has nothing to do with the Canal, e.g., Lebanon new water supply line crossing).

3 City Council Page 3 March 1, 201 7 for the March 6, 2017 Work Session

Excluding any cost impacts associated with capital projects, annual expenses are over three (3) times annual revenues. It is clear that, without substantive change, this Project is no longer sustainable. The table below summarizes these expenses for the last several years.

Avera e Annual Estimate Engineering and 0 erations $135,000 Direct Project Expenses $ 45,000 $1

Annual cost impact varies Capital Projects Impacts depending on number and type of projects.

Reporting requirements and compliance with the FERC License Articles involve significant, but manageable, time and effort. FERC requirements related to dam safety and Canal management, however, have become increasingly onerous, and a small facility like Albany's cannot generate sufficient revenue to offset the ever-increasing costs of regulatory review, required studies, and capital project expenses to meet design standards.

In addition to the FERC mandates issued after the City received its Project license, staff turnover at FERC has resulted in multiple new directives based on the newly assigned person's priorities. This has created both known and unknown future costs to Albany's water customers that will not be offset with increased power revenue. Albany staff has met with FERC engineers in Portland on multiple occasions to discuss the volume and scope of these initiatives, with limited success.

The City recognizes its stewardship responsibilities regarding environmental and drinking water protection, dam safety, and emergency planning. However, the scope and scale of regulatory studies, evaluations, and reports FERC is requiring are out of proportion with the size of our project, the level of potential hazards and risks to the community, and the ability of the Project to absorb the cost of these mandates. FERC is applying the same rules and requirements to the Albany project that they apply to huge projects with much higher risks. This "one size fits all" approach overburdens small-scale projects, and simply is not affordable for a community the size of Albany.

Albany needs to explore options for reducing or eliminating the Hydropower Project-related regulatory obligations.

Options

A cursory review of available options has been conducted, but additional detailed work is needed to clarify the viability of identified options, as well as to understand the terms, conditions, and costs associated with each.

One option is to surrender the license, but that option is not as simple as it may sound. FERC has expansive authority to impose conditions on a licensed project even as part of a plan to surrender it, decommission the Project, and cease power production. Many hydropower projects are owned and operated by private entities, and FERC needs to ensure that those projects are safely decommissioned and that any remaining facilities are properly maintained to prevent future hazards. These requirements may be different for Albany, as a municipal corporation.

4 City Council Page 4 March 1, 2017 for the March 6, 2017 Work Session

Another option may involve reclassification of the Project to remove the Canal and associated facilities from the Project boundary through a conduit exemption. This option did not exist when the original license application was completed. More understanding is needed to see if Albany qualifies for this type of license and what is involved in acquiring it. Under this approach, it may be possible to substantially reduce operating costs, bring them in line with operating revenues, and retain the benefits of hydropower production.

While there are not many opportunities for increased project revenues, those also need to be explored. This includes review and optimization of annual power production, as well as review and possible re-negotiation of the power purchase agreement for the Project.

It will also be necessary to identify all costs associated with exiting the hydropower business. For example, the City received a $475,000 grant from Energy Trust of Oregon to support the Project. A $25,000 Blue Sky grant was also received. Contractual requirements and repayment obligations associated with these grants need to be understood as part of the options review process.

Some of the benefits present at the beginning of the Project, including maintenance of associated water rights and generation of non-carbon green power, are still there now, and these need to be considered as part of the options review process.

Budget Impact:

The need for both professional engineering and legal assistance is anticipated to fully understand the City's hydropower options going forward. This effort will involve statute research, identifying options with associated risks and short-term costs, meeting with multiple state and federal agencies, and developing clear understanding of any long-term, on-going requirements. The estimated cost associated with option evaluation is approximately $90,000. There are adequate funds in the Water Capital budget to fund this effort.

MAY:rk

5

About the Facility • Flow receive depends on weather /time of year - Average Summer= 4 - s MGD Average Winter= 10 -12 MGD Designed to receive up to 68 MGD (max flow)

• Annual energy consumption - 6 million l

• Highly dependent upon volume of flow received.

-...J

------8

Daily Consumption (kWh) m t-" t-" N N V1 p V1 0 V1 :l 0 0 0 0 0 0 0 0 0 0 0 0 a 0 0 0 ro i!;' ~ 10/16/2014 ..., V> c 11> ~ §' 11/16/2014 ~ OQ m 11> fil ~ -· ~ b1 I ~ 12/16/2014 m 3 < ::J I ~ 6· ~-g_g_~ < - ~ a. 01/16/2015 < ~ co CJ ,.. 11>_,, m '..., c,..,. ~ ::!! :l (j) ti .J 02/16/2015 ~.;-w~. m ,..,. 7'" o ~ 03/16/201~ ~ o· ~a < :l ::r ·- n Q) 0 .... -<: n _,,:i-0 r+ 04/16/2015 rt< ... c -· 0 5· 0 ::r < ::J c °c CJ lll ... Oil < 0 05/16/2015 . :T () -h a. 06/16/2015 ~ ro .... tJ O" 'I, OJ .i:.o:i 11 07/16/201~ • II> ::s - rv ,.. ~ ~ 08/16/2015 "'w;;:: ~ ~ c .., .s ~ 3 09/16/2015 ~ < VI ~ ~ 10/16/2015 ~ w ;::\ I "O S. i :l 11/16/2015 I J\1 I lll I I m ,... 12/16/2015 I ::s I tD ,.~ 01/16/2016 I I '"" 02/16/2016 ~ "O 03/16/2016 tD 04/16/2016 .,~

I 05/16/2016 3 I OJ VJ -a ::s ~ ~ 06/16/2016 n ,OJ -·n tD ~ ~ 07/16/2016 ,rt m "i- :l 08116/2016 ~ ~ I ~ ~ 09/16/2016 ., ~ 10/16/2016 )> ~ 11/16/2016 0 .

? I I I I I N I-' I-' V1 0 V1 ...... N "7' 0 1..1 0 0 ,o 0 IJl 0 ~ 0 0 0 0 0 0 0 0 .J b b b · O 0 0 0 b ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cumulative Energy Savings, (kWh) -·

9 Energy Projects/Tasks • HVAC Systems I temperature adjustments • Lighting fixtures in/ on buildings • Hot water heaters • W3 Pressure Adjustments • On/ Off Peal< Demand Aeration • Most Open Valve • Shutting down redundant VFD's

_.. 0 Energy Model - Current

City of Albany, WWTP - Energy Performance 25,000 - 300,000

:c- 20,000 -200,000 ~ ..:.: ~ 15,000 -100,000 0 ·,;:; :c 0.. E 10,000 -0 s: ::s :::=. .,;- "'c: 0.0 8 5,000 100,000 -s 2!- ·;v 3 % Target, (kWh) .,.,"" c 174,223 :> 0 I I I ; I I I I I 1-:M;;: I 200,000 ~ (LI c w 300,000 (LI ~ Aeration VFD's n:s :; Shutoff 400,000 E Congr;:itul;:itions! You h;ivc v::J s;:ivcd 620,597 kWh through 500,000 implementation of your Reduced energy efficiency actions. holding tank LED Light 600,000 mixing Conversion 700,000 LI"> Lf") LI"> LI"> LI"> Lf") Lf") Lf") Lf") Lf") Lf") Lf") l.D lD l.D lD lD <.D <.D <.D <.C <.C <.O <.O ...... v ...... v ...... v ...... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c c 0 0 0 0 N N N N N N N N N N N N N N N N N N N N r-J r-J r-J ....,, ....,, N N ..._, ..._, <.!> <.O <.!> <.!> <.O <.!> <.!> v LI'\ lD ...... 00 O"> Cl ...... N ,..,.., tj- ._,., LO r-- 00 O' c:: ...... -...... -...... -"'...... -0 -"'0 --0 -0 -0 -0 -0 -0 -C> -...... -...... -"'..... --C> --C> --C> -C> -0 --0 --0 ---0 c:: ...... -...... --'""...... --C> "'C> Baseline Period - Program Start ---Predictec Energy w/ no Action, (k'N,) ---Act ual Er.ergy, (kW,) ---cumulative Savings. (

_. _. Recently Completed Projects • Street and Interior LED lighting conversion - December 2016 Project cost $33,400 Incentive -$14,000 City's cost $19,400 ROI on City's investment= 3.5 years Energy Savings = 79,000 kWh

• Talking Water Garden Actuator - February 2017 Project cost $9,ooo Incentive -$4, 500 City's cost $4,500 ROI on City's investment= i.7 years Energy Savings = 54,000 kWh

...... N Savings & Incentives

Item kWh Incentive Energy 621000 $44,960 LED Lighting 79000 $14,000 TWG Actuator 54000 $4,500 SEM Energy $19,555 SEM Milestone $3,000 Total $86,015

Approx. 10% reduction in power consumption at WRF

...... w LI) \0 ,.., ..-! .-l .-l 0 0 0 t"~ N N I I I

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14 Cost of Power

$~!::>0,fJ!JU

...... $.,535,000 $~30,UlJU I > ...... $510,000 ...... - ...... , $4!'.l!J,320 $lJYO,U:JU $471,050 $410,0UO /,,_.r_ r~~ - Budget .... "'rn 450 000 ~ $1150,0:JO ...... _ Cl ...... -:--. ·- --- /"' - Actual Cost $lJ30,fJUO I -...... ~ ---·Cost w/out SEM $410,0DO

$390,000

$3/0,0UO

$350,000 2015 2016 2017 2018 Fisc;:il Yc;:ir

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16

Purpose

~ Develop an energy management program to:

° Continually and cost-effectively increase the efficiency in our use of energy; 0 Reduce costs where feasible; 0 Reduce environmental impacts; and 0 Safeguard the public resources entrusted to us Goals

~ Reduce our overall electrical and natural gas energy consumption (combined) by 5% every year for a three-year period beginning December 201 5. ~ Monitor energy performance to account for factors that influence energy use. ~ Engage in operations and maintenance actions that lead to increased efficiency. Six Pumping Stations And Two Water Treatment Plants Were Our Focus

Chemical addition Vine Coagulation. Albany-Millersburg Street Fl 1 t· . Water Treatment Treatmentw, .., & Sedimentatio""'"' ~'"2~n · Plant Plant Fil tration · 16MGD 12MGD (mixed-media) + "·"a:!" total capacity Disinfection {corrosion co11trol and fiuondotlonJ

Storage Tanks

Distribution :ncluding;

~ ·I I III • reservoirs pumping stations miles of pipe en c 0 ro C.9 c 0 c ·- 0 . N

...... , en ~ c c CJ) """""c co 0 """""ro ro - ro $ c.. 0.. C.9 """""CJ) """""c c CJ) CJ) ·-0 ~ E Vl""""" """""ro CJ) CJ) 0 c ~ LO LO >~

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Key Opportunity Actions

Lights: Replace Bulbs With More Energy Efficient Bulbs Turn Them Off

Heating: Set Automatic Controls Turn Down The Thermostat

Operations: Repair Air Leaks Fix Or Replace Bad Motors Service Equipment Use Most Efficient Pumps Fine Tune The Timing Of Pumps Optimize Filter Cleaning Process. Energy Model

I -- Baseline Period Implementation Period Reporting Period --Predicted kWh - Actual kWh 1 -:-- ~11ergy Savin_gs Jn.':~3.~.~~~ !.~~i~a!es .:?~".~gs) . I I 800,ooo If 700,000 Ii Goo,ooo :> > soo. •ooo QO ; 400,000 r:: ~ 300,000 Heat optimization, soda ash (Vine St.) s 200,000 100,000 \ Backwash optimizcitfon {Vine st.) .~ j 0 _...,,.,. ,.,-= . -- 0 -,=: ·50,000 ! "' Core SEM begins -100,000 .f.,, . _l Air leak repair (A/M) I 1') ~ -150,000 ...~ Backwash optimization (A/M) ~ ·,;:i -200,000 -3 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ -~ ~ ~ ~ ~ e ~ ~ ~ . ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ a ~~~~~~~~~~~~~~~~~ V' ~ ¥ ~ ~' ~ ~~ ~ ~ ~\ ~' ' ~~ ~ ~ ~ ~' Electricity Usage/Reduction

Electric Usage -Water Dept. 2015-2016

70~000 Electric 60~000 4.95% reduction in 2016 50~000 -- ill. ~ "' 40~000 ~ ~ ... ~ " - T ...... ~ .. \;:... .oil -,. .... ~ 30~000 rr ~ _._kWh 2016

20~000 ~kWh 2015

10~000

0 '-- ll w ~ )> '-- '--c: )> U') 0 z 0 m ~ c: m (!) ::J O'" ru "O ru c: n 0 ...... ::J < (JQ "O rt n c: < ro rt 0 < (!) ru c: n - c: (!) (!) ...... ru :J VI O'" rt (!) 3 3 < ...... 3 ...... 0- -< 0- 0- (!) (!) ...... ro...... Natural Gas Usage/Reduction

Natural Gas Usage - Water Dept. 2015-2016

7000.0 ~~-~~--.---.,---.---....---.---...--,.----..,----., Natural Gas 6000.0 I ll I I I I I I I ! ! I I I 31 .. 34% reduction in 2016 5000.0

4000.0 I H I I I I I I I I I II I

3000.0 I 11 ~ :J.m I I I I I I I I I I ..._Th erms 2016 ....,Therm s 2015 2000.0 ! I • I ' I lt I I I I I I l I I

1000.0 I I I I • I' I I I I I I • I I

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' :i Daily Consumption (kWh)

1'J ~ 0 °'0 -n.. Js ~o ~o _ g § 0 0 0 8 :::s )> OJ g ru 11/01/2013 c ~ $lJ ru = 12/01/2013 ;:;:; :I VI :I (1) 01/01/2014 (1) -0 ~ -· ~ s .., (1) (1) 3 (1) :::J - 02/01/2014 ~ ::!. ..,-c 0.0Q • 0 03/01/2014 OQ ro- '""' .., - a. < 3 o ru m :>:" 04/01/2014 (1) \0 2 ~ :1l ~ ':i:- Qi ';;" 05/01/2014 o. or co ~ :::s (1) ... O"l 0 :::J - · ":::J 06/01/2014 ~g~~ (D 07/01/2014 ruo';;"-< ~ ...... 0 - ·< ';;" c .., 08/01/2014 0 0 .., ';;" :::J c O ru n 09/01/2014 !:".., ~ ~ 10/01/2014 ';;" ~· lC 11/01/2014 0 12/01/2014 ... < I I 01/01/2015 ~ nc ..,-o O"' 02/01/2015 m -ci c3 ~.., ::s - ru 03/01/2015 (1D ~ 3 04/01/2015 < <" Vl (1) ... .., Vl ru 05/01/2015 m ru ;:i ::s < 06/01/2015 (I) -ti :r 07/01/2015 ., ~ 0 -;;;: 08/01/2015 ~ .., ~ 09/01/2015 ,, ';;" 10/01/2015 (I) :'I.. 11/01/2015 0 12/01/2015 ., 3 01/01/2016 3 m ~ 02/01/2016 ::s 03/01/2016 I n ::s (I) U'1 ,, 04/01/2016 I ~ .., n -l ~ 05/01/2016 I ru - · ~ ~ 06/01/2016 I (1) ...(1) a.(1) :..... rn 07 /01/2016 I :>:" :I 08/01/2016 I ~ ~ 2: ~ 09/01/2016 I 10/01/2016 I s: ~ :I 11/01/2016 I 0 0 ~ 12/01/2016 I ()" 01/01/2017 ~--1----1--'--+----l----'-l-----1 I I I I a. ? w 1'J I-' 0 I-' 1'J w 72 0 0 0 0 0 0 (D :E ~o 9 9 9 9 9 ';;" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Cumulative Energy Savings, !kWh) Final Savings And Incentive

Annual Electricity Savings (kWh) ' 144, 139

Energy Trust Incentive (1) $2,883

Annual Natural Gas Savings (therms) (2) 6,525

Energy Trust Incentive ( 1) $1,305

i Energy Trust Milestones Achieved (3) (4) $6,000

Total Energy Trust Incentive $10,188

--- ~-..,.- --- 11~-=------,------

I

('.. ('.. ('.. c:~ 0 ·-...... , ~ I cu I ~ CJ

INTERGOVERNMENTAL AGREEMENT

This Agreement is made and entered into upon execution by and between LINN COUNTY OREGON (hereinafter called "COUNTY"), a political subdivision of the State of Oregon, and the CITY OF ALBANY, OREGON, a municipal corporation organized under the laws of the State of Oregon (hereinafter called "CITY").

RECITALS

A. WHEREAS, ORS 190.003 et.seq. provides for intergovernmental cooperation in the interest of furthering economy and efficiency of local units of government; and

B. WHEREAS, ORS 190.003 for purposes of such intergovernmental cooperation defines a unit of local government as including a county, city, district, or other public corporation, comm1ss10n, authority, entity organized and existing under statute of county or city charter; and

C. WHEREAS, ORS 190.010 provides that a unit of local government may enter into a written agreement with any other unit or units of local government for the performance of any or all functions and activities that a party to the Agreement, its officers or agencies, have authority to perform; and

D. WHEREAS, in an effort to further economy and efficiency, the parties hereto wish to jointly provide funding for improvements at the Linn County Expo Center.

NOW, THEREFORE, in consideration of the mutual promises contained herein, COUNTY and CITY agree as follows:

AGREEMENT

A. CITY agrees to provide up to ONE HUNDRED THOUSAND DOLLARS ($100,000.00) to COUNTY to be used for capital improvements at the Expo Center on or before [MONTH], XX, 2017.

B. CITY'S agreement to provide said funds to COUNTY is contingent on the COUNTY providing ONE HUNDRED THOUSAND DOLLARS ($100,000.00) on capital improvements at the Expo Center (CITY'S AND COUNTY'S contribution collectively referred to as the "Funds").

C. COUNTY agrees to use Funds on projects that upgrade or enhance the facility, which will promote the Expo Center for additional events.

D. COUNTY agrees to provide a list of proposed capital improvements that will enable the Expo Center to promote or attract additional events.

34 E. COUNTY agrees to contribute its share of the Funds on improvements to the Expo Center at the same time as CITY makes it contribution of the Funds.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed in duplicate by the duly authorized persons whose signature appear below. Each party, by the signature below of its authorized representative, hereby acknowledges that it has read this Agreement, understands it, and agrees to be bound by its terms and conditions. Each person signing this Agreement represents and warrants to have the authority to execute this Agreement.

City of Albany Board of County Commissioners for Linn County

Wes Hare, City Manager Roger Nyquist, Chair

John K. Lindsey, Commissioner

William C. Tucker, Commissioner

Date Date

35