Washington County, Board of Commissioners last update: July 9, 1999

MINUTES WASHINGTON COUNTY BOARD OF COMMISSIONERS JUNE 15, 1999

CONVENED: 6:35 p.m. BOARD OF COMMISSIONERS: Chairman Tom Brian Vice Chair Roy Rogers Commissioner Kim Katsion Commissioner Delna Jones Commissioner Andy Duyck STAFF: Charles D. Cameron, County Administrator Robert Davis, Assistant County Administrator Ellen Cooper, Senior Deputy County Administrator Walt Peck, County Communications Officer Dan Olsen, County Counsel Kathy Lehtola, Assistant Director, LUT Bill Gaffi, General Manager, USA Larry Eisenberg, Facilities Manager, SS Linda Gray, CPO Coordinator Jeff Friend, Audio/Video Specialist Barbara Hejtmanek, Recording Secretary PRESS: Doug Browning, Hillsboro Argus Don Hamilton, APPROVAL OF MINUTES: June 1, 1999 The Board of Commissioners were seated with the following members of the Hillsboro City Council to jointly discuss and take action on the Strategic Investment Program (SIP) application: Mayor Councilor Jim Frost Councilor Darlene Greene Councilor Bruce Hochstein Councilor Allen Judah Councilor Karen McKinney

The Hillsboro City Council allowed the Board of Commissioners to proceed with a portion of its agenda before taking up the Intel matter. 1. CONSENT AGENDA

Chairman Brian called attention to the following modifications to the Consent Agenda: Item b. is revised to reflect that Unified Sewerage Agency awards its property insurance policy to Allendale Mutual. Item c. is revised to award contract for Workers Compensation coverage to Liberty Northwest in the amount of $103,000. An off docket item from the Unified Sewerage Agency entitled "General Managers Employment Agreement" is added to the Consent Agenda. Item e. is continued to July 6, 1999. An off docket item from the Unified Sewerage Agency entitled "Jackson Bottom Wetlands Preserve Board Agreement with Unified Sewerage Agency Authorization to Sign Agreement" is added to the Consent Agenda. Items l. and m. reflect the correction of a date from June 7, 1999 to June 14, 1999 in the text of the agenda sheet. Commissioner Katsion declares of conflict of interest for item n. due to the fact that her husband is employed by Kittelson and Associates, a subconsultant for this project. Commissioner Katsion therefore abstains from the vote on item n. An off docket item from the Department of Land Use and Transportation entitled "North First Avenue at Lincoln Street Intersection - Award Construction Contract" is added to the Consent Agenda. Item z. is set over to a future Worksession. An off docket item from the Board of Commissioners entitled "County Administrator Contract Amendment" is added to the Consent Agenda. An off docket item from the Board of Commissioners entitled "County Counsel Contract Amendment" is added to the Consent Agenda. was moved to approve the Consent Agenda, as amended. Motion - Rogers 2nd - Katsion Vote - 5-0 UNIFIED SEWERAGE AGENCY 1.a. USA RO 99-29

Easement - Approval of Acquisition (Approved Under Consent Agenda)

1.b. USA MO 99-79 Fiscal 2000 Property Insurance Coverage - Award and Authorization to Sign Policy Renewal (Approved Under Consent Agenda) 1.c. USA MO 99-80 Fiscal 2000 Workers Compensation - Award and Authorization to Negotiate and Sign Contract (Approved Under Consent Agenda) 1.d. USA MO 99-81 Durham Wastewater Facility Phase 3 Improvements (4793) - Authorization to Sign Amendment No. 17 to Professional Services Agreement (Approved Under Consent Agenda) 1.e. USA MO 99-82

The Brookwood Process Trunk Project (4877) - Approve Cost Sharing Agreement with City of Hillsboro (Continued to July 6, 1999) 1.f. USA MO 99-83

King City Highway 99 Storm, Phase 1 (4617) - Final Acceptance and Authorization for Final Payment (CPO 4B) (Approved Under Consent Agenda) 1.g. USA MO 99-84

NW 143rd Avenue/Burton Road Intersection Improvements (4362) - Approve Amendment No. 1 to Intergovernmental Agreement with Washington County (CPOs 1 and 7) (Approved Under Consent Agenda) LAND USE AND TRANSPORTATION 1.h. RO 99-113

Adoption of Annual Road Maintenance Work Program for Fiscal Year 1990-00 (All CPOs) (Approved Under Consent Agenda) 1.i. RO 99-114

Road Maintenance Local Improvement District (MLID) - Adopt Budgets for Fiscal Year 1999-2000 (All CPOs) (Approved Under Consent Agenda) 1.j. MO 99-242

NW 143rd Avenue/NW Burton Road Intersection Improvements Approve Amendment No. 1 to Intergovernmental Agreement with the Unified Sewerage Agency (CPOs 1 and 7) (Approved Under Consent Agenda) 1.k. MO 99-243

SW 198th Avenue and SW Johnson Street Signalization Project Approve Intergovernmental Agreement with the Oregon Department of Transportation (CPO 6) (Approved Under Consent Agenda) 1.l. MO 99-244

Durham City Park Bikepath - Approve Amendment No. 1 to Intergovernmental Agreement with City of Durham (CPO 4) (Approved Under Consent Agenda) 1.m. MO 99-245

Durham Road Improvement Project - Approve Amendment No. 1 to Intergovernmental Agreement with City of Durham (CPO 4) (Approved Under Consent Agenda) 1.n. MO 99-246

SW Jenkins Road Between SW Murray Boulevard and SW Cedar Hills Boulevard - Approve Amendment 7.2 with W&H Pacific, Inc., to the Professional Services Agreement for Design and Construction Engineering (CPO 1) (Approved Under Consent Agenda) 1.. MO 99-247

Martin-Cornelius Schefflin Corridor: Phase 2 Realignment Approve Amendment 2.2 to Professional Services Agreement Approve Amendment 2.2 to Professional Services Agreement for Environmental Engineering Services (CPOs 11, 12 and 14) (Approved Under Consent Agenda) 1.p. RO 99-115

Murray Boulevard Bridge - Jenkins Road to Millikan Way Approve Resolution Authorizing Oregon Transportation Infrastructure Fund Loan Agreement (CPO 1) (Approved Under Consent Agenda) 1.q. MO 99-248

West Shore Drive Slide Correction Project - Approve Inter- governmental Agreement with the Oregon Department of Transportation (CPO 11) (Approved Under Consent Agenda) 1.r. RO 99-116

Bauer Oaks No. 2 - Road Maintenance Local Improvement District (MLID) Establish MLID and Approve Assessments (CPO 1) (Approved Under Consent Agenda) 1.s. RO 99-117

Corrine Heights - Road Maintenance Local Improvement District (MLID) Establish MLID and Approve Assessments (CPO 6) (Approved Under Consent Agenda) 1.t. RO 99-118

Kinnaman Park - Road Maintenance Local Improvement District (MLID) Establish MLID and Approve Assessments (CPO 6) (Approved Under Consent Agenda) 1.u. RO 99-119

Rose Court - Road Maintenance Local Improvement District (MLID) Establish MLID and Approve Assessments (CPO 6) (Approved Under Consent Agenda) 1.v. RO 99-120

Stone Hill - Road Maintenance Local Improvement District Stone Hill - Road Maintenance Local Improvement District (MLID) Establish MLID and Approve Assessments (CPO 6) (Approved Under Consent Agenda) 1.w. MO 99-249

Congestion Pricing - Contract Amendment (Approved Under Consent Agenda) COUNTY ADMINISTRATIVE OFFICE 1.x. MO 99-250

Authorize Intergovernmental Agreement with Oregon State University Extension Service for Citizen Participation Organization (CPO) Program (Approved Under Consent Agenda) 1.y. MO 99-251

Year-End Budget Appropriation Adjustments for Fiscal Year 1998-99 (Approved Under Consent Agenda) 1.z. MO 99-252

Intergovernmental Agreement Between Washington County and Worksystems, Inc. (Continued to Future Worksession) OFFICE OF COMMUNITY DEVELOPMENT 1.aa. MO 99-253

Community Development Block Grant Agreements (Approved Under Consent Agenda) COOPERATIVE LIBRARY SERVICES 1.bb. MO 99-254

Approval of Public Library Service Agreement and FY 99-00 Payments (Approved Under Consent Agenda) 1.cc. MO 99-255 Intergovernmental Agreement with City of Hillsboro for Jail Library Services (Approved Under Consent Agenda) HEALTH AND HUMAN SERVICES 1.dd. MO 99-256

Grant Waiver/Authorization to Execute Contracts for Chemical Dependency Treatment and Prevention Services for Adults and Adolescents with Substance Abuse Problems (99093W) (Approved Under Consent Agenda) 1.ee. MO 99-257

Grant Waiver/Authorization to Execute Contracts with Community Agencies to Provide Adult Mental Health Services (99087W) (Approved Under Consent Agenda) 1.ff. MO 99-258

Approve and Award Contract with Centers to Provide Treatment Services for Adults Experiencing Gambling Addiction (Approved Under Consent Agenda) 1.gg. MO 99-259

Grant Waiver/Authorization to Execute Contracts for DUII Information and Treatment Services (99092W) (Approved Under Consent Agenda) 1.hh. MO 99-260

Approve 1999-2001 Comprehensive Plan Update, Approve 1997-99 Carry Over Plan Amendments and Approve and Award Commission on Children and Families Funding Contracts for 1999-2000 (Approved Under Consent Agenda) 1.ii. MO 99-261

Approve Financial Assistance Grant Agreement with the State Mental Health and Developmental Disability Services Division for the 1999-2001 Biennium (Approved Under Consent Agenda) 1.jj. MO 99-262 Grant Waiver from Request for Proposals Process and Accept Contract with Eugene E. Jacobus for Deputy Medical Examiner Services (Approved Under Consent Agenda) JUVENILE SERVICES 1.kk. MO 99-263

Amendment to Intergovernmental Agreement with Multnomah County for Juvenile Detention Services (Approved Under Consent Agenda) 1.ll. MO 99-264

Intergovernmental Agreement with the State of Oregon for Diversion of Youth from State Correctional Facilities (Approved Under Consent Agenda) SUPPORT SERVICES 1.mm. MO 99-265

Signature Authority to Sign and Issue Purchase Orders/Multnomah County/Janitorial Supplies/Sheriffs Office and Support Services Facilities Management Division (#99088SA) (Approved Under Consent Agenda) 1.nn. MO 99-266

Authorization to Utilize a Clackamas County Requirements Contract/Traffic Signs - Operations Division (#99091SA) (Approved Under Consent Agenda) 1.oo. MO 99-267

Signature Authority to Issue Purchase Orders/Miscellaneous Vehicle Acquisitions - Fleet Management Division (#99072SA) (Approved Under Consent Agenda) 1.pp. MO 99-268

Acceptance of Proposal/Authorization to Execute Agreement/ Employee Assistance Program Services - Risk and Benefits Division (#99046P) (Approved Under Consent Agenda) 1.qq. RO 99-121

Amendment to the 1998-1999 Washington County Pay Plan Adding the New Classification of Community Health Program Supervisor and Changing the Title and Salary Range for the Existing "Community Health Supervisor" (Approved Under Consent Agenda) 1.rr. MO 99-269

Approve Findings/Grant Exemption to Purchase Miscellaneous Microprocessing Hardware and Software (#99090E) (Approved Under Consent Agenda) 1.ss. MO 99-270

Approval of Violence in the Workplace Policy and Prohibition on Carrying Firearms (Approved Under Consent Agenda) 1.tt. RO 99-122

Amendment to the 1998-1999 Pay Plan Changing the Title of Financial Operations Supervisor to "Financial Services Supervisor" and Changing the Salary Range (Approved Under Consent Agenda) 1.uu. MO 99-271

Approve Findings/Grant Exemption/Approve Contract Amendment - Fleet Management Division (#99066E) (Approved Under Consent Agenda) 1.vv. MO 99-272

Granting of Easement Over County-Owned Land to Unified Sewerage Agency (Approved Under Consent Agenda) 1.ww. MO 99-273

Dedication of Right-of-Way and Utility Easement to the Public (Approved Under Consent Agenda) 1.xx. MO 99-274 MO 99-274

Deeding of Countys Interest in 2N44, Tax Lot 8 to Dorothy J. ODell and Herbert C. Bryant, Jr. (Approved Under Consent Agenda) HOUSING AUTHORITY 1.yy. HA MO 99-11

Approve Findings (#99094E) Grant Exemption and Authorize Execution of Unit Turnaround Contract (Approved Under Consent Agenda) 1.zz. HA MO 99-12

Authorize Payment of $33,452 in Premium to the Housing Authority Risk Retention Pool (Approved Under Consent Agenda) SERVICE DISTRICT FOR LIGHTING NO. 1-A COUNTY SERVICE DISTRICT 1.aaa SDL RO 99-22

. Crandall Townhomes - Accept Petition, Form Service Area and Authorize Charges (CPO 7) (Approved Under Consent Agenda) 1.bbb SDL RO 99-23

. Oleson Road Village Subdivision - Accept Petition, Form Service Area and Authorize Charges (CPO 3) (Approved Under Consent Agenda) 1.ccc SDL RO 99-24

. Mill Woods - Accept Petition, Form Service Area and Authorize Charges (CPO 1) (Approved Under Consent Agenda) 1.ddd SDL RO 99-25

. Remington #2 Subdivision - Accept Petition, Form Service Area and Authorize Charges (CPO 1) (Approved Under Consent Agenda) 1.eee SDL RO 99-26 . Village at Sutherland Meadows aka Kirkland Meadows - Accept Petitions and Set Public Hearing (CPO 7) (Approved Under Consent Agenda)

2. ORAL COMMUNICATION (2 MINUTE OPPORTUNITY) None.

Item 3.a. (1999 Strategic Investment Program Agreement with Intel Corporation) is taken out of order to allow the Board to dispense with the following agenda items.

4. PUBLIC HEARING - UNIFIED SEWERAGE AGENCY 4.a. USA MO 99-78 Adoption of the Unified Sewerage Agency Pay Report - Fiscal Year 1999-2000 Non-Represented Employees The public hearing was opened.

No public testimony was offered. The public hearing was closed.

There was a motion to adopt the USA Pay Report for represented employees for FY 1999-2000. Motion - Duyck 2nd - Katsion Vote - 5-0 5. PUBLIC HEARING - COUNTY ADMINISTRATIVE OFFICE 5.a. RO 99-110

Annexation of .40 Acres at SW Stacey Street Between SW 197th and 192nd to Tualatin Valley Water District (Proposal WA-1599) The public hearing was opened.

No public testimony was provided. The public hearing was closed.

It was moved to adopt a Resolution and Order approving the annexation of this property to the Tualatin Valley Water District. Motion - Rogers 2nd - Jones Vote - 5-0

5.b. RO 99-111 Adopting the 1999-2000 Fiscal Year Budget - Making Appropriations and Levying Taxes for Washington County The public hearing was opened.

No public testimony was given. The public hearing was closed.

There was a motion to approve the Resolution and Order adopting the budget, making appropriations and levying taxes. Motion - Katsion 2nd - Rogers Vote - 5-0

The Board of Commissioners and the Hillsboro City Council now prepared to consider application under the Strategic Investment Program. 3. PUBLIC HEARING-HILLSBORO CITY COUNCIL AND BOARD OF COMMISSIONERS - STRATEGIC INVESTMENT PROGRAM 3.a. MO 99-238

1999 Strategic Investment Program Agreement with Intel Corporation Commissioner Jones declared a conflict of interest as defined by State law caused by her ownership of more than $1,000 worth of Intel stock. For this reason, she said she would not participate in the discussion and that she would vote only if her vote is required for the Board to take action as required by State law. Mayor Faber asked City Attorney Tim Sercombe to advise the City Council regarding conflicts of interest. Mr. Sercombe reminded the Council that State law requires that members not participate or vote in this matter, in most circumstances, if there is an actual conflict of interest. He said there would be a conflict of interest if the matter before them results in pecuniary benefit, advantage, or disadvantage to a Council member, a relative, or a business with which they are associated. Mr. Sercombe clarified that the business with which they are associated includes businesses in which the Councilor or household member owns (or has owned in the past year) stock that is worth more than $1,000. He stated that this is the time of the meeting at which to declare any conflicts of interest. Mayor Faber commented that all of the Councilors including the Mayor have a conflict of interest with the exception of Councilor Judah. He asked for specific declarations now. Councilor McKinney related that her conflict stems from the ownership by her husband and herself of over $1,000 in Intel stock. Councilor Hochstein declared a conflict based upon his ownership of more than $1,000 worth of Intel stock. He added that his wife, children, and most of his family are in the same situation. Councilor Frost said that his conflict of interest results from his daughters ownership of more than $1,000 of Intel stock. Councilor Greene declared a conflict of interest based on her sons ownership of more than $1,000 of Intel stock. Mayor Faber related that his conflict of interest is caused by his sons employment by Intel and by his and his wifes ownership of Intel stock in excess of the $1,000 limit. On advice of Counsel, he turned over the gavel to Councilor Greene so that she could preside over the remainder of the meeting. Tim Sercombe summarized that four of the present five Councilors have a conflict of interest with this item. He said that under the Charter, it takes a majority of the quorum of the Council to take action on a matter. Mr. Sercombe translated this to say that at least three of the Councilors present would have to vote in favor of a proposition for a proposition to carry as a matter of law. He stated that in a situation like the current onewhere the Council is required by law to actthe law allows the Council to take action notwithstanding the conflicts of interest. Mr. Sercombe explained that this is called the rule of necessity at law. He added that the Councilors have the right to abstain if they feel they do not want to participate. Mr. Sercombe concluded that each of the Councilors have the right to participate, notwithstanding the conflict. Councilor McKinney announced that she would not participate in the discussion, primarily because she serves as a member of the Portland Community College Board, which receives substantial dollars from the Community Service Fee. Councilors Hochstein, Frost, and Greene felt they could participate in this matter. Councilor Greene opened the hearing for the City of Hillsboro and turned the meeting over to Chairman Brian to conduct the public hearing. Chairman Brian advised the audience of the format for the Intel hearing and opened the Boards public hearing. He then called upon the County Administrator for a staff report. Utilizing a computerized presentation, Charles Cameron identified the members of the Application Review Team as Chairman Brian, Commissioner Rogers, and himself. He recognized the staff who supported the team: Dan Olsen, County Counsel; Ellen Cooper, Senior Deputy County Administrator; Jerry Hanson, Director of Assessment and Taxation; Walt Peck, County Communication Officer, Mark Gardiner of Clancy, Gardiner, & Pierce; David Lawrence, Hillsboros Assistant City Manager; and Rob Gardiner, & Pierce; David Lawrence, Hillsboros Assistant City Manager; and Rob Massar, Hillsboros Director of Finance and Support Services. Mr. Cameron stated that the Strategic Investment Program (SIP) was created by the 1993 State Legislature to increase Oregons competitiveness and modernize the States economy. He said it addresses the capital-intensive nature of the high technology industry. Mr. Cameron specified that it limits the amount of taxable property to $100 million and requires an annual payment of a Community Service Fee. He explained that the Community Service Feefor the purpose of tonights discussionis equal to 25% of the abated taxes up to a maximum of $2 million. Mr. Cameron described other annual tax abatements in the State tax system having to do with particular industries. He said that the overwhelming emphasis of the application is related to re-tooling facilities with the machine tools and other related equipment. Mr. Cameron observed that the application emphasizes the retentionnot the creation--of current jobs and limits job growth along with new demands on public services. He stated that this application will likely maintain Oregon as the key research and development site for Intel world-wide. Mr. Cameron informed the Board that business in general pays a property tax on equipment in addition to land and buildings. He specified that most of Intels $12.5 billion investment would be for that equipment. Mr. Cameron explained that approval of the SIP would limit the property tax on the equipment and keep Oregon competitive. Mr. Cameron turned to a discussion of the key elements of the SIP agreement. He related that the agreement is configured so that the Intel Corporation will pay the full tax rate on all land and all buildings. Mr. Cameron said that this tax abatement would be applied to the equipment. He related that additional guaranteed payments are included in the agreement in the amount of roughly $2 million per year. Mr. Cameron reiterated that there is a Growth Impact Fee. He said that total taxes and the in lieu payments are twice what the Oregon SIP law requires. Mr. Cameron explained that SIP law requires a certain amount of taxation and then provides for additional revenues. He observed that this agreement with Intel doubles the minimum requirement. Relative to Intels property tax impacts, Mr. Cameron stated that this new agreement requires Intel to pay $19.35 million per year compared to its current payment of $12 million per year, which is a 60 percent increase. He said that estimated total payments over the life of the agreement are $110.4 million. Mr. Cameron reported that the current average property tax per employee in Washington County is $604 per employee; Intel paid $1,090 per employee in 1998 and will pay $1,835 under the new agreement. He clarified that without the proposed agreement, Intel would be paying roughly $3,000 per employee, or five times the County average. Mr. Cameron summarized that the agreement requires Intel to pay three times the average property tax per employee. He informed the Board that the program does not reduce State revenues. Regarding growth impacts, Mr. Cameron commented that the focus is on job retention. He stressed that Intel will still be paying all the other fees that any other corporation would pay, including impact fees. Mr. Cameron displayed graphs illustrating how Intel compares with other employers in terms of several variables. Mr. Cameron invited Steve Grant, Ronler Acres Fab Manager and Chief Intel Representative, to come to the microphone. Mr. Cameron mentioned that the negotiations leading to this agreement were more time-consuming than had been anticipated. He said that negotiations were at times difficult but credited Intel as being candid and tough yet sensitive to the needs of the community at all times. Steve Grant stated that he has been with Intel for eighteen years, fourteen of which have been in Oregon. He identified himself as Intels lead negotiator on this deal and, as such, expressed pride in the end result for both sides. Mr. Grant thanked everyone who was involved in this sometimes-difficult process. He reviewed that Intel came here in 1974 and invested about $1 billion in Oregon from that time through 1993. Mr. Grant recalled that in 1994, Intel struck a deal for an SIP agreement and has invested about $2.5 billion during the last five years. He reported that the Oregon campus is the largest Intel site. Mr. Grant reported that technology continues to change very quickly, which requires Intel to re-tool its factories about every two years. He said that these factories are extremely expensive and the equipment becomes obsolete every 2-3 years. Mr. Grant noted that costs are increasing about 20-30 percent. He pointed out that the investment costs associated with this industry are staggering. Mr. Grant recalled that in 1993, State leadership examined the existing tax system for ways to draw semi-conductor manufacturing to this area. He said that the Strategic Investment Program came forth from the Legislature. Mr. Grant reviewed that the 1994 agreement called for building out the Aloha facility and also building the new Ronler Acres campus. He regarded this as a great investment in the local area. Mr. Grant told the Board that many facets were associated with the 1994 agreement, such as construction goals, job creation, community service fee, employee involvement in the community, commute reduction, donation of land for MAX station, and partnership with area schools. He stated that the 1999 agreement builds on the 1994 agreement, such that everything in the 1994 agreement will stay in place for the next ten years and the 1999 agreement will build on top of that. Mr. Grant noted that the key feature of the 1994 agreement was job creation whereas the goal of the 1999 agreement is to retain the workforce and re-tool the current facilities. He added that the proposed agreement calls for an impact fee if Intel increases beyond 5,000 manufacturing jobs. Mr. Grant hoped the Board and Council would regard the proposed agreement as a good thing for the citizens of Washington County. Chairman Brian opened the public hearing. A brief summary of citizen testimony follows. Rob Drake, Mayor, City of Beaverton, P. O. Box 4755, Beaverton, Oregon, submitted a letter and read it into the record. (Letter may be found in the Meeting File.) He expressed unanimous support for the proposed Strategic Investment Program for the Intel Corporation on behalf of the Beaverton City Council. Mayor Drake regarded Intel as a positive, productive member of the Washington County corporate community. He wanted to ensure that Intel will continue full production in Washington County and pointed to the ripple effect Intel has upon this community. Mayor Drake believed that this investment would help continue Washington Countys position of leadership in the region and State. Ralph Brown, Mayor, City of Cornelius, 586 S. 12th, Cornelius, Oregon, testified in his capacity of Vice Chair of the Washington County Community Action Organization. (Letter from Mr. Brown and Jerralynn Ness, Executive Director, WCCAO, may be found in the Meeting File.) Mr. Brown reported that the Community Action Organizations primary purpose is to address the causes and conditions of poverty in Washington County and he described its mission as assisting low-income persons to achieve self-determination. He told the Board and Council that the Community Action Organization supports the proposed SIP agreement with Intel in the belief that it will protect the economic strength of the community. Mr. Brown observed that Intel has demonstrated that it cares about the community in many ways. He pointed out that the community service fee in the proposed agreement offers opportunities for addressing critical local needs. Douglas R. Smith II, 10350 S.W. Crestwood Court, Beaverton, Oregon, submitted a letter into the record, which may be found in the Meeting File. He regarded the agreement with Intel to be in conflict with the Oregon Constitution, Article I, Section 20 and stated his belief that this should be addressed judicially by the Supreme Court before proceeding further. Mr. Smith examined the 14th Article of the Bill of Rights of the Constitution and stated that the word "person" can include a corporation. He objected to the Strategic Investment Program because he said it gives a few businesses preferential treatment for greater profit margin. , 809 N.E. Jackson School Road, Hillsboro, Oregon, identified herself as Director of the Hillsboro Economic Development Partnership and as past Mayor of Hillsboro and past Hillsboro City Councilor. She said that it is critical to the fabric of this community to keep Intels employees and business here. Mrs. Huffman testified that Intel has done great things for this area in the past without publicizing them. As a member of the Board of Directors for Tri-Met, she related that Intel has instituted a shuttle program for its employees and provides a free transit pass to all of its workers. Mrs. Huffman asked the Board and Council to vote in favor of this SIP request. Roger Towell, 54991 S.W. Belleview Avenue, Gaston, Oregon, stated that he has worked for Intel for over 21 years. He perceived inequity in a property tax system which is based on the value of things you own rather than being directly associated with present income. Mr. Towell pointed out that the income tax is fair because it is based on ability to pay. He testified that Intel has very expensive equipment and makes very good profits because of that. Mr. Towell pulled some pennies out of his pocket and stretched a tape measure across the room in an effort to demonstrate the high degree of profit realized by Intel. He opposed the tax abatement because he did not think Intel needs it in order to continue to do business in this community. Sparse audience applause was heard at the conclusion of Mr. Towells testimony. Randy Miller, Chairman, Moore Company, S.W. Arthur Court, Portland, Oregon, indicated that he has chaired a program for economic development since 1981 called the Ambassador Program, which is an assemblage of private sector business persons as well as government and community leaders. He pointed out that there can be no quality of life without strong employment. Mr. Miller felt that the community should concentrate on the next generation of jobs and strive to prepare for them. He appreciated the enormous positive economic impact Intels presence has had on the community. Mr. Miller wished to guarantee that the next generations will be able to find jobs in this area. Richard Webb, 7735 S.W. Brentwood Street, Portland, Oregon, alleged that Intel left a "clean-up mess" in the Silicon Valley, despite enormous profits. He wondered how this County agreement would be affected by a situation in which Intel is challenged in Court in regard to anti-trust law and forced to break up into separate entities. Marty Sevier, 2607 S.W. 28th Drive, Portland, Oregon, spoke in favor of Intels continued business presence and job support in this community. He encouraged the Board and Council to vote in favor of the SIP proposal. Board and Council to vote in favor of the SIP proposal. Dave Mazza, 1124 S.E. Rex Street, Portland, Oregon, identified himself with Portland Jobs with Justice, a labor community coalition in the tri-county area. He said that Jobs with Justice, on principle, believes that subsidies to large corporations like Intel are generally not a good idea. Mr. Mazza did not feel that there has been adequate evidence over the long term to demonstrate that these programs really reach the groups of workers that need to be reached. He recognized, however, the need of the community to come up with creative solutions. Mr. Mazza asked that no action be taken on this request tonight because he regarded that as premature. He did not think there has been adequate disclosure on key issues. Mr. Mazza was concerned that 15% of Intels workforce do not make family wage jobs, which impacts social services in the broad community. He was concerned, too, about the low-wage, contract workers employed by Intel and wished to know the exact number of this group. Mr. Mazza urged the Board and Council to place specific criteria in the application that require Intel to ensure that workers are getting living wages. Wally Mehrens, 3535 S.E. 86th Avenue, Portland, Oregon, represented 16,000 construction workers associated with the Building Trades Council. As Executive Director of this group, he spoke in support of Intels request under the Strategic Investment Program. Mr. Mehrens stated that this proposal also has the support of the Northwest Oregon Labor Council. He testified that thousands of his members have worked at the various Intel sites in Washington County and have received excellent wages. Mr. Mehrens regarded Intel as a leader in their industry. Bill Resnick, 1615 S.E. 35th Place, Portland, Oregon, characterized Intel as a powerful, ruthless corporation with the overriding goal of making money. He alleged that Intel has violated anti-trust and patent laws, and has habitually abused the environment. Mr. Resnick testified that Intel researches new needs and then creates consumer and mass market desire for high power computing. He stated that Intel supports and invests in companies that create violent, sexual, addictive computer games. Mr. Resnick also charged that Intel exploits low paid workers. He stated his belief that now is a good time to think about how to place under social control immoral companies like Intel. Mr. Resnick opposed Intels SIP request. John Tapogna, Project Manager, Echo Northwest, 888 S.W. Fifth Avenue, Portland, Oregon, described the positive economic impact by Intel on his company and the community as a whole. He traced the effect of the companys spending in addition to the spending of Intels employees. Mr. Tapogna estimated that one in six jobs in the County are supported directly or indirectly by Intel. He asked the Board and Council to support the proposed SIP agreement with Intel. Joe Rastatter, 2006 N.E. 50th, Portland, Oregon, identified himself as a member of Jobs with Justice and as a member of St. Francis Church in Southeast Portland. He stated that food and friendship are served in the churchs dining hall to up to 300 persons daily. Mr. Rastatter described the vast majority of diners at St. Francis as the working poor. He said that most make only enough money so that they must pay 50-80% of their wages on housing, which is why they come to St. Francis to eat. Mr. Ratstatter commented that many contract workers at Intel are not meeting the family wage standard. He hoped government would use a tax abatement strategy as leverage to include care for the regions lowest paid workers. Mr. Ratstatter appealed to the Board and Council to deal with the income polarization issue. Dan Moriarty, President, Portland Community College (PCC), spoke in support of the agreement with Intel. He stated that Intel has been a partner with Portland Community College since 1979 and has received support each year since then. Mr. Moriarty related that not only does Intel live up to their agreements but they go beyond the agreement and do much more. He regarded Intel as a strong partner for all levels of education and as a fine example of collaborative partnerships with education for business and industry. Commissioner Rogers asked for Mr. Moriartys opinion as to what would be the impact of Intel downsizing or leaving this County. Mr. Moriarty felt this would be absolutely devastating to the community. Bill Brandt-Gasuen, no address given, submitted and began reading a letter into the record. (Letter may be found in the Meeting File.) He did not think that the Intel Strategic Investment Plan provides a solution to funding municipal services while maintaining a quality of life that is more than adequate. Mr. Brandt-Gasuen claimed that Intel re-purchased its own stock and invested in or purchased 100 businesses related to their own areas of concentration. He could not understand why Intel would need any tax breaks. Mr. Brandt-Gasuen provided numerous details regarding an Intel plant in Costa Rica, which he alleges exports 33 percent of Intels worldwide production. He predicted that Intels presence in Washington County will eventually decrease. Mr. Brandt-Gasuen viewed the SIP as corporate welfare. Judy Edwards, Executive Director, Westside Transportation Alliance, 10921 N.W. Barrett Way, Portland, Oregon, indicated that her organization is a non-profit entity. She recognized Intels many contributions to numerous non-profit organizations in the community. Ms. Edwards called attention to Intels support of employee volunteerism and to the corporations financial generosity. She regarded Intel as a model corporate citizen in the community. Ms. Edwards lauded Intels commitment to mass transit as well. Karen Lee, P. O. Box 701, Tualatin, Oregon, represented the Board of the Tualatin Chamber of Commerce. She referred to a March letter from Chamber President to the Board in support of the SIP proposal and agreement with Intel. Ms. Lee reiterated this position and asked the Board and Council to approve the agreement tonight. She stated that the Tualatin Chamber represents more than 300 members and businesses, which recognize the economic reach Intel and its employees have. Ms. Lee appreciated the fact that the economic benefits from Intel touch many small businesses and provided examples of these. Jerry Willey, 16515 N.W. Pebble Beach, Beaverton, Oregon, said that he is involved directly and indirectly with about eight Boards and Foundations in the Hillsboro community area. He commented that every one of these have been impacted by Intel money or employees, or both. Mr. Willey described the support given to Boys and Girls Clubs by Intel and used this as an example of how Intel excels as a community partner. He was pleased, too, at how Intel supports its own employees. Dan Aberg, President, Hillsboro Chamber of Commerce, said that this is an organization of over 800 business and professional members in the greater Hillsboro area. He expressed support for the SIP agreement with Intel on behalf of the Hillsboro Chamber based on the fact that it is good for all businesses, including small businesses. Mr. Aberg recognized that Intels continued presence and future capital investment in equipment is also an investment in the economic vitality of the small business community. Morgan Anderson, 16220 S.W. Stetson, Sherwood, Oregon, identified herself as an Intel employee, whose job it is to coordinate employee volunteer efforts. She stated that 2,800 Intel employees donated 53,000 hours of their own time to volunteer work in the community over the past year. Ms. Anderson highlighted that 27,000 hours were spent volunteering in the schools. She emphasized that Intel does provide employees with good paying jobs and, in conclusion, asked the Board and Council to support this application. Randy Bateman, 662 N.E. Goldie, Hillsboro, Oregon, stated that he is self-employed and both lives and works in the City of Hillsboro. He recalled the empty storefronts in downtown Hillsboro several years ago and credited Intels presence in the community with helping the economic climate of the area. Mr. Bateman wished to disagree with all of the points made by those testifying in opposition to Intels request tonight. He encouraged the Board and Council to vote favorably on the SIP. Elaine Spalding, President, Beaverton Chamber of Commerce, 4800 S.W. Griffith Drive, Beaverton, Oregon, reported that this organization has taken a position of support on the SIP. She noted that this is consistent with the Beaverton Chambers support of the 1994 SIP. Ms. Spalding said that business leaders in the Beaverton Chamber believe that the SIP is an important tool for business retention, expansion, and attraction. She mentioned that small businesses especially benefit from Intels presence in the community. Scott Eaton, Leasing Agent for Amberglen Business Center in Hillsboro, 1600 N.W. Compton Drive, Beaverton, Oregon, informed the Board and Council that Intel is the single largest backer of the Oregon Graduate Institute, which he considers an integral piece of the community. He divulged that the Oregon Graduate Institute is working toward a safer environment for the community and feared that this school could not exist without the support it receives from Intel. Betty Atteberry, Executive Director, Westside Economic Alliance, stated that the Alliance supports Intels request through the Strategic Investment Program. She emphasized that Intels impact on the community is economically significant. Ms. Atteberry regarded Intels community involvement as very significant. Steve Cox, 1123 S.W. Fairfax Place, stated that he has both a personal and professional interest in the SIP program, based upon his 25 years of employment with Intel. As manager of Fab 15 in Aloha, he realized that it is very important for Intel to have the money to spend to equip its facilities. Mr. Cox was responsible for 1,000 workers and said he takes this responsibility very seriously. As a shareholder, he applauded Intel for pursuing the Strategic Investment Program because of the competitive world we live in. Don McClave, Portland Metropolitan Chamber of Commerce, 221 N.W. 2nd Avenue, Portland, Oregon, expressed the Chambers support for Intels application. He considered the agreement as well crafted and asked for its approval this evening. Mr. McClave called attention to Intels leadership in the areas of west side light rail, education funding, and community support. education funding, and community support. Tamra Busch-Johnson, Executive Director, Business Education Compact, 3800 Cedar Hills Boulevard, Beaverton, Oregon, submitted and read a letter into the record. (Letter may be found in the Meeting File.) On behalf of the Compact, she urged the Board to approve Intels request for the benefit of all Washington County residents. Mrs. Busch-Johnson identified the Business Education Compact as a non-profit organization connecting educators and students to the workplace. She explained that the groups mission is to promote educational excellence, relevancy, and expanded learning opportunities. Mrs. Busch-Johnson said that Intel has been the Compacts most valuable partner in this effort. She characterized Intel as a leader in developing employer models and in providing learning experiences to students and teachers alike. Mrs. Busch-Johnson had no doubt that Intel has given back to the community and education in ways which are far-reaching and measurable. She provided numerous examples of Intels corporate giving to the community. Darrin Marks, Club Director, Hillsboro Boys and Girls Club, 560 S.E. Third Avenue, Hillsboro, Oregon, expressed support for the SIP agreement with Intel and stated the belief that the additional taxes and fees from Intel will go a long way toward addressing many community needs. Mr. Marks stated that he has enjoyed a great relationship with many volunteers from Intel. He then described a typical program initiated by Intel to help students. Patrick LaCrosse, President, Oregon Museum of Science and Industry (OMSI), 1935 S.E. Water Avenue, Portland, Oregon, spoke in support of the proposed Strategic Investment Program agreement with Intel. He reported that Intels membership on OMSIs Board for many years has helped guide OMSI to its recent recovery and has provided major, annual financial support. Mr. LaCrosse felt that Intels OMSI support benefits the region in general and Washington County directly. He supported the Strategic Investment Program as a creative way to strike a balance between the cost of municipal service and property-based tax revenue. Mr. LaCrosse said this gives local government the flexibility to strike this balance between cost and tax revenue. He regarded the agreement as an equitable deal for both Intel and Washington County. Pam Baker, Insignie/ESG, 8705 S.W. Nimbus, Beaverton, Oregon, indicated that her business is a commercial real estate development and management firm. She said that this firm has been a long-time member and supporter of what is now the Westside Economic Alliance and the Ambassador Program. Ms. Baker testified that she personally has been involved with many economic development issues over the last twenty years. She viewed the SIP agreementas negotiatedas win/win for Intel, the County, and the citizens. Ms. Baker urged unanimous support for it in the vote this evening. Ed Christovich (name may be misspelled; did not sign in), 167 N.E. 12th Avenue, Hillsboro, Oregon, described himself as a taxpayer who does not choose to work because of age. He related that he has been Chairman of Citizen Participation Organization No. 9 in Hillsboro for the last three years. Mr. Christovich reported that Intel has consistently attended meetings on topics affecting or interesting them. He said that their attentiveness as a corporation was unique in his experience. Mr. Christovich hoped there would be unanimous support of the proposed agreement with Intel this evening. Public testimony now came to an end . Chairman Brian asked staff to respond to citizen questions having to do with 1) the anti-trust situation, 2) the constitutionality of this application, and 3) wage and labor issues. Dan Olsen acknowledged that he is not an expert in the area of anti-trust law. He said that, in general, successful anti-trust actions involve breaking up corporations into smaller units to encourage competition. Mr. Olsen explained that when this occurs, one or more of the constituent entities created are obligated to pick up the obligations of the former parent company. He believed that it would be very unusual for an anti-trust action to have a significant impact on this agreement other than to change the entity identification. Mr. Olsen recognized that there could be an impact on the amount of revenue generated under the agreement based on the amount of investment. However, he noted that the guaranteed annual payment would be an obligation of the successor to Intel except perhaps in a very unusual circumstance. Regarding the constitutionality, privileges, and immunities issue, Mr. Olsen related that the law is clear that governments have broad discretion to categorize groups of individuals or corporations for purposes of taxation. He commented that the Oregon Legislature has categorized corporations for purposes of this program based on the amount of investment that they levy. Mr. Olsen stated that the only issue that generally is raised would be if the Legislature or a local government tried to pass a law that benefited solely one corporation. He observed that this is not the case with the SIP program and he did not see any significant legal issues involved with the program. Charles Cameron responded to the labor questions raised during citizen testimony. He categorized the three types of employees that major organizations employ: 1) full-time, permanent employees, 2) temporary help employees, and 3) the contractor employees. Regarding wages for the 11,000 permanent Intel employees, Mr. Cameron listed the following salary ranges: 3,000 make over $80,000 per year 3,000 earn between $60,000 and $80,000 per year 2,600 make between $40,000 and $60,000 per year 1,600 earn between $30,000 and $40,000 per year (Salaries quoted do not include extra benefits beyond payroll.) Mr. Cameron related that the remaining 600 earn less than $30,000 per year and added that this group is largely made up of entry level employees who have future capacity in the organization. He said that averaging that wage and comparing it to other employers in Washington shows that it is roughly double the average wage in Washington County. Mr. Cameron acknowledged that Intel does employ temporary employees, as does Washington County. He clarified that there is a twelve month limit on the temporary employees and that they are utilized as staffing for peak periods. Mr. Cameron stated that Intel employs about 2,300 contract employees, about half of which are in the construction trades and which average over $50,000 per year. He said this leaves about 1,200 contracted employees, for which no wage information is available because it is regarded as proprietary. Mr. Cameron noted that the contracted employees are primarily allocated to the areas of landscape, security, and food service employment. Based upon four months of analysis and consideration, he forwarded to the Board the unanimous recommendation by the review team for adoption of the agreement. Chairman Brian thanked all who participated in the public process and expressed appreciation for all comments received about Intels Strategic Investment Program application. Chairman Brian closed the Boards public hearing. Councilor Greene concurred with Chairman Brians remarks and closed the Councils public hearing. Councilor Frost commented that the pluses on this matter far outweigh the minuses both economically and socially. He fully supported the agreement. It was moved to approve the proposed 1999 Strategic Investment Program agreement between Washington County and Intel and to authorize the Mayor and City Recorder to execute necessary documents to implement that agreement, subject to the approval of form by the City Attorney. Motion - Frost 2nd - Judah Vote - 4-0 Abstain - Faber, McKinney 9:10 p.m.

Mayor Faber adjourned the Hillsboro City Council Meeting. Chairman Brian asked for Board comments or questions. Commissioner Katsion observed that the Board is tonight creating the future for ourselves, our children and our grandchildren. She said that this typifies why she ran for Commissioner and why she has supported the SIP applications in the past and will continue to do so this evening. Commissioner Katsion pointed out that no private or public employer is perfect but that the pluses of Intel far overshadow the minuses. She regarded Intels family wage jobs as critical to Washington Countys environment. Commissioner Katsion wholeheartedly supported the agreement with Intel. Commissioner Duyck said that he was adamantly opposed to the SIP process five years ago and has continued this position over the years. He explained that his opposition to the SIP process stems from his belief that it absolves the State of any responsibility or motivation to solve the problem for the vast majority of small businesses, which make up the backbone of the economy. Commissioner Duyck hoped that approval of this application would not take away the support for fighting for small business and for trying to eliminate the personal property tax. Regarding the specific request before the Board this evening, he regarded it as in the best interests of Washington County. Commissioner Duyck said he has examined the application thoroughly and come to the conclusion that the Countys review team did an excellent job of negotiating with Intel, whom he believed negotiated in good faith. He was bothered by criticisms having to do with social engineering because he did not think government should dictate a companys hiring practices. As a member of the negotiating team, Commissioner Rogers shared his inside view of the process. He suspected he was selected as part of this team because of 1) his longevity on the Board and 2) his occupation as CPA and expertise with numbers. Commissioner Rogers stated that the team started with a vision and reported that the Countys and Intels visions were not the same at the beginning. He said that the County was not prepared to enter into an agreement with Intel unless the $50 million gap between the two teams was narrowed to a reasonable level. Commissioner Rogers said Washington Countys vision was to provide clarity to its constituents regarding the details of this proposed agreement and its impact upon them. He stated that the team focused on the taxes everyone pays in common and told Intel it would pay 100% of the assessed value on its buildings, 100% of the assessed value of its land, and then determined that it would be fair to apply a three times factor on Intels very expensive equipment. Commissioner Rogers considered the resulting agreement as simple, fair, and equitable. It was moved to approve the Intel Corporations SIP application, to authorize the Chairman to sign the agreement, and to forward the application to the State for its approval. Motion - Rogers 2nd - Katsion Vote - 4-0 Abstain - Jones

Commissioner Rogers felt that the successor/interest matter should be looked at before finalization of the agreement. Chairman Brian stated that from the beginning, the Boards sole responsibility has been to determine if this application was or could be made to be in the best interests of the community. He felt this goal has been achieved. Chairman Brian thanked Commissioner Rogers and Mr. Cameron for their tremendous contributions to the negotiation team, as well as the rest of staff who assisted in doing a terrific job under timelines. He extended gratitude to Mr. Grant and Intel staff for their straightforwardness and understanding of the Countys need to keep faith with its constituents. In response to Board questioning, Mr. Cameron stated that the agreement contains language stating if there is some unforeseen act by, for example, the State or Federal Government, Intel is not absolved of responsibility; rather, in that circumstance, Intel and the County would meet and confer to discuss the implications. Dan Olsen assured the Board that County Counsel will look at the successor language. However, he stated that it is important to remember that the worst that could happen in an anti-trust situation would be that whatever is constructed would go fully on the property tax roles because that is always the default position. Mr. Olsen felt the County is protected either way, no matter what happens. RECESS:9:30 p.m. RECONVENE:9:40 p.m. The Board now resumed acting upon its regular agenda for the evening. Hillsboros City Council was no longer present. 6. PUBLIC HEARING - SUPPORT SERVICES 6.a. RO 99-112

Adoption of the 1999-2000 Fiscal Year Fee Schedule Chairman Brian called attention to an adjustment to the agenda packet, which was distributed to the Board at todays Worksession. He explained that this is a revision to the fee schedule to conform with the State fee schedule. (Revision is attached to agenda item.) The public hearing was opened.

No public testimony was offered. The public hearing was closed.

It was moved to adopt the Resolution and Order authorizing the Fiscal Year 1999-00 Fee Schedule, as amended. Motion - Jones 2nd - Rogers Vote - 5-0 7. PUBLIC HEARING - SERVICE DISTRICT FOR LIGHTING NO. 1 7.a. SDL RO 99-21

Adopting the 1999-2000 Fiscal Year Budget - Making Appropriations for the Service District for Lighting No. 1 The public hearing was opened.

No public testimony was provided. The public hearing was closed.

There was a motion to approve the Resolution and Order adopting the budget and making appropriations. Motion - Katsion 2nd - Rogers Vote - 5-0 8. PUBLIC HEARING - ENHANCED SHERIFFS PATROL DISTRICT 8.a. ESPD RO 99-1

Adopting the 1999-2000 Fiscal Year Budget - Making Appropriations and Levying Taxes for the Enhanced Sheriffs Patrol District The public hearing was opened.

No public testimony was given. The public hearing was closed.

It was moved to approve the Resolution and Order adopting the budget, making appropriations and levying taxes. Motion - Rogers 2nd - Duyck Vote - 5-0 9. PUBLIC HEARING - URBAN ROAD MAINTENANCE DISTRICT 9.a. URMD RO 99-1

Adopting the 1999-2000 Fiscal Year Budget - Making Appropriations and Levying Taxes for the Urban Road Maintenance District The public hearing was opened.

No public testimony was heard. The public hearing was closed.

There was a motion to approve the Resolution and Order adopting the budget, making appropriations and levying taxes. Motion - Katsion 2nd - Rogers Vote - 5-0 10. COUNTY ADMINISTRATIVE OFFICE 10.a. MO 99-239

Intergovernmental Agreement with the City of Hillsboro for Distribution of Community Service Fees Resulting from 1999 Strategic Investment Program Agreement with Intel Corporation It was moved to approve the intergovernmental agreement with the City of Hillsboro for allocation of the Community Service Fee and to authorize the Chairman to sign. Motion - Duyck 2nd - Rogers Vote - 5-0

Charles Cameron pointed out that the most recent copy of the agreement was distributed to the Board at Worksession and will be included in the record. 11. HEALTH AND HUMAN SERVICES 11.a. MO 99-240

Metro West Ambulance Request for Basic and Advanced Life Support and Mileage Fee Increase There was a motion to grant Metro West Ambulance a 2.00% rate increase in the ambulance basic life support, advanced life support, and mileage fees. Motion - Katsion 2nd - Duyck Vote - 5-0 12. BOARDS AND COMMISSIONS 12.a. MO 99-241

Appointments to Washington County Department of Aging and Veterans Services Advisory Council It was moved to appoint the following individuals to the Department of Aging and Veterans Services Advisory Council:

60+ District 1 Terry Harris-Inman 60+ District 2 Marlene M. Rogers 60+ District 3 Corry E. Stolk 60+ District 4 Ross R. Mathews Long Term Health Care Marcelline J. MacDonald Prov. John L. Murphy Veterans Provider Herman White Veterans at Large 60+ or John Zuidema 60- Philip D. Hedrick 60+ Veterans At Large Private Sector Leader

Motion - Katsion 2nd - Jones Vote - 5-0

Included in the motion was direction to staff to continue recruitment for any unfilled positions and vacancies which may occur in the future. 13. ORAL COMMUNICATION

None.

14. BOARD ANNOUNCEMENTS Commissioner Rogers announced that there will be no Board Meeting next week or the following week.

15. ADJOURNMENT: 9:45 p.m. Motion - Rogers 2nd - Katsion Vote - 5-0 MINUTES APPROVED THIS _____ DAY ______1999

______RECORDING SECRETARY ______CHAIRMAN

For more information or comment: E-Mail: [email protected] or write to: Washington County Administrative Offices 155 N. First Avenue, Suite 300 Hillsboro, OR 97124 or : 503-648-8681 or Facsimile: 503-693-4545 or other phone numbers