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HERMISTON CITY COUNCIL Eastern Oregon Trade and Event Center (EOTEC)

1705 E. Airport Rd – Hermiston, OR 97838 Regular Meeting March 20th, 2017

A G E N D A

1. CALL MEETING TO ORDER– 7:00 pm

2. DECLARATION OF QUORUM

3. FLAG SALUTE

4. PROCLAMATIONS, PRESENTATIONS & RECOGNITIONS A) Recognition- Larry and Marjorie Davidson, Christmas Tree Donation.

5. CITIZEN INPUT ON NON-AGENDA ITEMS (Anyone wishing to bring anything before the council that is

not on the agenda is asked to please do the following: 1. Limit discussion to not more than FIVE minutes; 2. State your name and address; 3. Direct your comments to the Mayor.)

6. CONSENT AGENDA

A) Minutes of the February 27th, regular City Council meeting.

B) Minutes of the November 17th, 2016, and January 19th, Parks and Recreation Committee meeting.

C) Minutes of the February 1st, Airport Advisory Board meeting.

D) Minutes of the February 7th, Faith-Based Advisory Committee meeting.

E) Recommendation of standing committee appointments for the unexpired portion of a: i. Remaining 3-year term beginning March 28th, 2017 and ending December 31st, 2019

Budget Committee- position #2- Jason McAndrew position #3- Joshua Roberts

Recreation Projects Fund Advisory Committee- positions #2- Jody Frost

ii. 3-year term beginning April 1st, 2017 and ending March 31st, 2020 Planning Commission- position #5-Kathryn Erz

position #6-Dean Fialka

COUNCIL/CITY MANAGER WORK SESSION EOTEC DISCUSSION WITH

COUNTY COMMISSIONERS- 6:00PM




F) Announcement of standing committee vacancies for the unexpired portion of the remaining:i. 3-year term beginning 2017 and ending December 31st, 2019

Budget Committee- positions #1.ii. 3-year term beginning 2017 and ending March 31st, 2020

Planning Commission- positions #4.(Deadline for submitting applications: OPEN UNTIL FILLED.)

Action – Motion to approve consent agenda items. Roll Call

7. ITEMS REMOVED FROM CONSENT AGENDA

8. PUBLIC HEARINGS

9. RESOLUTIONS & ORDINANCESA) Ordinance No. 2243 – Consider an ordinance correcting certain bad cross-references, i.e. Links to

non-existent sections of the Hermiston Code of Ordinances.Action - Mayor requests first reading of the ordinance be read by title only and calls for a roll

call. Roll Call Action - Mayor requests that the ordinance be put on for final adoption at this meeting and that

the second reading be by title only and calls for a roll call. Roll Call Action - Motion that ordinance No. 2243 be adopted and become effective 30 days after its

adoption. Roll Call

B) Ordinance No. 2244 – Consider an amendment to Section 111.13, entitled “EXEMPTIONS,” ofChapter 112 TRANSIENT ROOM TAX of the Code of Hermiston and declaring an emergency.Action - Mayor requests first reading of the ordinance be read by title only and calls for a roll

call. Roll Call Action - Mayor requests that the ordinance be put on for final adoption at this meeting and that

the second reading be by title only and calls for a roll call. Roll Call Action - Motion that ordinance No. 2244 be adopted and become effective immediately after its

enactment. Roll Call

C) Resolution No. 2055 - Consider approving updates to the Employee Handbook to comply with StateLaw. Action- Motion to approve and lay upon the record. Roll Call

10. OTHERA) Consider approval of long-term Leases between the Eastern Oregon Trade and Event Center and

the Umatilla County Fair and Farm-City Pro Rodeo.Action- Motion to approve. Roll Call

i. Staff Reportii. Umatilla County Fair Lease

iii. Farm-City Pro Rodeo Mercantile Leaseiv. Farm-City Pro Rodeo Arena Lease




B) Consider awarding G2 Construction the construction contract for the Harkenrider Center.

Action- Motion to approve. Roll Call

C) Consider a request for a Cinco de Mayo beer garden in Butte Park. Action- Roll Call

11. COMMITTEE REPORTS A) City Committees and Liaison: Airport Advisory, Budget, Hispanic Advisory, Library Board, Parks &

Recreation, Planning Commission, Recreation Projects Fund, Faith-Based Advisory, Community Enhancement, Community Accountability, Conference Center, School Board, Public Safety, Public Infrastructure, Transit Planning, Festival Street Design, Rose Parade Float, EOTEC.

B) Mayor’s Report –

C) Council Report –

D) Manager’s Report- i. Columbia Grange #867

12. ADJOURNMENT

UPCOMING MEETINGS AND EVENTS (At City Hall unless otherwise specified)

March 20 6:00 pm City Council Work Session

(EOTEC- 1705 E. Airport Rd) March 20 7:00 pm City Council Meeting (EOTEC- 1705 E. Airport Rd) March 21 7:00 pm Hispanic Advisory Committee Meeting March 22 4:00 pm Library Board Meeting (Library) March 27 6:00 pm City Council Work Session March 27 7:00 pm City Council Meeting March 31 7:00 am EOTEC Meeting (1705 E. Airport Rd) April 4 4:30 pm Faith-Based Advisory Committee April 5 4:00pm Airport Advisory Committee Meeting (1600 Airport Way) April 10 6:00 pm City Council Work Session April 10 7:00 pm City Council Meeting April 12 7:00 pm Planning Commission Meeting April 13 5:30 pm Parks and Recreation Committee Meeting April 14 7:00 am EOTEC Meeting (1705 E. Airport Rd)

HERMISTON CITY COUNCILRegular Meeting February 27th, 2017

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Mayor Drotzmann called the regular meeting to order at 7:00pm. Present were Councilors Kirwan, Beas-Fitzgerald, Primmer, Hardin, Myers, Smith, Gutierrez, and Davis. Staff members in attendance were City Manager Smith, City Attorney Gary Luisi, Assistant City Manager Mark Morgan, Chief Edmiston, Will Johns, Bill Schmittle, Ron Sivey, Amy Palmer, Emma Portello, and Lilly Alarcon-Strong. News media present were Jade McDowell of the East Oregonian. The pledge of allegiance was given.

Consent Items Councilor Primmer moved and Councilor Hardin seconded to approve all Consent Agenda items, to include:

A. Minutes of the February 13th, work session and regular City Council meeting. B. Minutes of the February 11th, Goal Setting meeting. C. Minutes of the November 21st, 2016, Hispanic Advisory Committee. D. Minutes of the January 25th, Library Board meeting. E. Announcement of standing committee vacancies for the unexpired portion of a:

i. 3-year term beginning March 2017 and ending December 31st, 2019Budget Committee- positions #1, #2, and #3. Recreation Projects Fund Advisory Committee- positions #2.

ii. 3-year term beginning April 1st, 2017 and ending March 31st, 2020Planning Commission- positions #4, #5, and #6.

(Deadline for submitting applications is February 28th, 2017.) Motion carried unanimously.

Resolution No. 2053- Supporting a transportation package in the 2017 legislative session. City Manager Smith gave a brief presentation regarding the importance of supporting the League of Cities with a transportation package at the 2017 legislative session.

After some discussion in support of Resolution No. 2053 Councilor Davis moved and Councilor Smith seconded to approve Resolution No. 2053 and lay upon the record. Motion carried unanimously.

Resolution No. 2054- Supporting funding for drug enforcement and forensic lab activities. City Manager Smith gave a brief presentation regarding the Governors proposed budget to cut drug enforcement in Eastern Oregon. If passed, our area would lose three members of the drug enforcement team and would eliminate the forensic lab in Pendleton and move all the staff at this location to other labs in the State, leaving the closest forensic lab to us in Clackamas. City Manager Smith stated at the Ways and Means meeting, many district attorneys testified that these resources are extremely important with helping them make cases, especially with extremely violent crimes. This resolution encourages the legislature to find ways to fund these aspects of the budget.

Chief Edmiston stated many people already believe justice is slow; so taking these vital resources away from our area would significantly delay the response time in receiving evidence information as we do not know how much of a priority Eastern Oregon will have in their labs.

Mayor Drotzmann stated this is the second time the Governor has acted in such a way, where it seems Eastern Oregon is not a priority for her as well. Mayor Drotzmann stated this is a major resource for our community, as well as surrounding communities; and, taking this resource away would be a significant blow to our public safety agencies and community.

HERMISTON CITY COUNCIL Regular Meeting February 27th, 2017

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Councilor Gutierrez and Primmer agreed this is a priority and something our community “needs”, not “wants”, and community tax dollars should stay in our community as well. Mark Gomolski 2020 NW Eucalyptus Dr, stated it is commendable that the City Council is supporting this Resolution and asked if the public could be more involved with this issue, perhaps with a petition from the community to the Governor’s Office. Mayor Drotzmann encouraged the community to voice their concerns in whatever format they feel the most comfortable with: petition, letter, and phone calls to the legislator’s or governor’s office. Councilor Primmer moved and Council Kirwan seconded to approve Resolution No. 2054 and lay upon the record. Motion carried unanimously. Corrective Action Plan to address the deficiencies noted in the 2015-2016 Audit Report. Finance Director Amy Palmer stated the State of Oregon has recently adopted a new requirement for Cities to submit responses to address deficiencies found in financial audits. These responses are submitted to the Secretary of State to be filed. The State can withhold some of the State shared funding if city’s fails to submit a Corrective Action Plan. The information in this Corrective Action Plan is the same information that was found in the audit report. Mayor Drotzmann stated he noticed many items on the Corrective Action Plan have already been addressed or implemented. Councilor Beas-Fitzgerald moved and Councilor Primmer seconded to approve the Corrective Action Plan as presented by Finance Director Amy Palmer. Motion carried unanimously. January Financial Report Finance Director Amy Palmer presented the January Financial Report to the Council. Judy Meyers 1054 W Madrona Ave, asked how much money the Senior Center has left since some of the money is already being spent. City Manager Smith stated because the City contributed $700,000 to the Senior Center it has about $2.5 million left. Councilor Davis moved and Councilor Gutierrez seconded to approve the January Financial Report as prepared and presented by Finance Director Amy Palmer. EOTEC Monthly Report Finance Director Amy Palmer presented the Council with the EOTEC Financial Report. There was some discussion regarding the budget table and displaying other in-kind contribution as they do not feel the report accurately reflects how much the City has fully contributed to EOTEC compared to the County. And it is important for the community to see this displayed correctly as the City and County are equal partners. Ms. Palmer asked if the Council would like to see this format displayed similarly to the Monthly Financial Report. The Council said yes.


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City Manager Smith gave a construction update stating the ground breaking for the barns was done last week, an additional irrigation well is being drilled today, the Street Department has started work on the fence line so the contractor can complete his work, and a lot more activity. The walls of the Rodeo arena are 75% complete with arena walls and start compacting soil and back fill, footings for ticket booths and livestock wash racks are also being installed. It is very exciting to see all the work that is being done. Mayor Drotzmann asked that progress photos of EOTEC be presented to the Council with EOTEC updates to be able to fully appreciate all of the work that is being completed. City Manager Smith stated he will make sure to include photos in the future. Committee Report Rose Parade Float Committee: Councilor Beas-Fitzgerald stated some Committee members were able to attend the float training in Portland. The next meeting is on Thursday at 5:30pm. Hispanic Advisory Committee: Councilor Beas-Fitzgerald stated the Committee met last week and one of the subjects spoken about was helping form a Hispanic Grief Counseling Group in the area for non-English speaking individuals/families who may need these services. Councilor Gutierrez stated the Committee also welcomed a new member, Mark Gomolski who is also present. Councilor Gutierrez stated Maria Duron from the School District will also be presenting the School Bond information at the next meeting in March. Mark Gomolski stated the Cinco de Mayo Committee is also working very hard on the Cinco de Mayo Parade and Event. Mr. Gomolski stated he has reached out to the Consular General of Mexico in Portland and have asked him to be the Grand Marshall of the Parade. Mr. Gomolski stated State Representatives have also been invited and he hopes the City Council will join Mexico’s Consular General and participate in the parade and festivities. Councilor Beas-Fitzgerald stated the event will be held at Butte Park for 2 days, May 6th and 7th, and people can expect to see fireworks the night of the 6th, with food vendors, a carnival, horse competitions, and bands playing. The Parade will travel E from the gas station on 11th and E Elm Street go to Butte Park and travel back to the starting position. Parks and Recreation Committee: Councilor Myers stated the Committee met and discussed the different strategies being used to try to get people to vote for the new playground at Sunset Park and water issues at Sunset Park. Councilor Primmer stated Sunset Park is leading in first place by over 1,000 votes, but still needs to have the most votes by March 20th to win. Library Board: Councilor Smith stated there is a lot of movement and changes at the Library and encouraged people to become voting members and join the Friends of the Library Board for $5.00 to be a part of those changes.


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Mayor’s Report Mayor Drotzmann stated the Ways and Means Committee Meeting was very well attended with about 400 people from across Eastern Oregon. Mayor Drotzmann stated he was able to welcome the Committee and express concerns regarding the current taxing system, generating revenues, and controlling costs with insurance and PERS. Mayor Drotzmann stated many people spoke about issues they are passionate about and had good questions. It was a very respectful gathering and encouraged people to attend meetings with elected officials such as these. Councils Report Councilor Kirwan voiced concerns over the future of EOTEC and the progress the Board has made thus far; stating essential contracts for the Fair and Rodeo have not been finalized and the Board consistently takes too long discussing, finalizing, and approving decisions on all project topics. Councilor Kirwan proposed that the City Council temporarily appoint itself as the acting EOTEC Board and fully take over all responsibilities on the remaining project as he feels the City Council could make more progress than what is currently being done as the City has already put in more than its fair share to make sure the community has a successful EOTEC Facility. City Manager Smith stated EOTEC is a unique facility with many committees and Boards that have special interests in the project, and that is why it has taken so long to make decisions. City Manager Smith stated it would be best to meet with the County Commissioners as they are the City’s partners in this project. Another meeting is being scheduled for April. City Attorney Gary Luisi stated there are legal aspects of the Intergovernmental Agreement between the City and the County, and cannot be overturned so easily or quickly as Councilor Kirwan proposed. After some discussion from all members of the Council disagreeing with the proposition to replace the EOTEC Board, the council agreed that the current EOTEC Board has more background and knowledge in the project and it would be best to continue on this path, provided that the Board does not procrastinate on making decisions. The Council also agreed that a meeting with the County Commissioners should be held prior to April. City Manager Smith stated he will contact the County Commissioners to schedule a meeting sooner rather than later. Manager’s Report City Manager Smith reminded the Council that the Urban Renewal Downtown District meeting will be at 5:30pm tomorrow at EOTEC. Emma Portello stated the first half of the meeting will be informational and the second half will be used to create 5 action group committees to focus on the main items that were addressed in the steak holder interviews:

1. Retail and Restaurant needs 2. Events and Activities 3. Beautification 4. Perceived lack of parking 5. Building Upgrades, both exterior and interior.

HERMISTON CITY COUNCILRegular Meeting February 27th, 2017

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Each Committee will only focus on its own task above and will meet for about 1 hour, 1 time per month, for the next 3 to 4 months.

Mayor Drotzmann encouraged anyone who is interested in any of the Committee’s please attend tomorrow’s meeting at EOTEC.

City Manager Smith reminded the Council that the Festival Street Committee will hold its next meeting on Wednesday, March 1st at 5:30pm at City Hall. The Committee will be looking at final design recommendations.

City Manager Smith stated he, along with 3 other Councilors will not be able to attend the next City Council Meeting as they will be in Washington DC for the National League of Cities Meeting.

There was some concern that there would not be a quorum for the next City Council Meeting and may need to be rescheduled. City Manager Smith stated he would look at potential dates throughout the month that the meeting can be rescheduled to and inform the Council and public once a decision has been made.

Adjournment There was no other business, and the meeting was adjourned at 8:26pm.

SIGNED: /s/Dave Drotzmann MAYOR

ATTEST: /s/Lilly Alarcon-Strong ASSISTANT CITY RECORDER

City of HermistonParks and Recreation Department

R e g u la r M ee t in g November 17, 2016 5:27pm

Also present: Carlisle Harrison, Mike Kay,

Chairperson Cortaberria called the regular November 17, 2016 meeting to order at 5:30pm. Present were Board members J. Stahlberg, R. Severs, M. Kay, C. Harrison, Councilors Myers and Primmer. Board member Williams and Garcia were absent.

October 2016 Minutes Board members J. Stalhberg moved and R. Severs seconded that minutes of the regular scheduled meeting of September 8th, 2016 be approved. Motion carried unanimously.

Public Attendance Janet Jones with Umatilla County Office

Public Comment Chairperson Cortaberria asked for public comments. Visitor Ms. Jones stated she was part of the agenda and would speak later.

REPORTS

A) Hermiston Christmas TreeDirector Fetter showed pictures and a short video of the 30 foot Spruce tree donated to the City’s for its 2nd

Annual Winter Festival and Tree Lighting Ceremony. The Spruce was donated by Larry and Marjorie Davidsonof Hermiston who planted it from a sapling. The interview with the Davidson’s revealed that whenever theymoved the tree would be dug up and taken. The Davidson’s have lived in Milton-Freewater, Pendleton, then madetheir way to the final destination of Hermiston where the spruce has grown for 30 years. Umatilla ElectricCooperative helped in the cutting down and translocating the tree it to the festival site of 2nd and Gladys Street.

B) Janet K Jones – Tobacco Prevention and Education CoordinatorMr. Fetter welcomed Ms. Jones and reminded board members of Ms. Jones visit four years ago when after herpresentation regarding Smoke-Free parks the committee decided approve make Funland Playground a TobaccoFree site.Ms. Jones stated statistics show that 80% of all adults do not smoke. Of the percentage that do smoke, 75% ofthem want to quit. Offering smoke free areas allows those wanting to becomeShe went on to state that there areresources for tobacco prevention and to help smokers quit. Smoke Free areas offer lower maintenance, reducedrate of fire, and promotes healthy lifestyles.Mr. Fetter asked if other cities have had any push back from smoke free parks.Ms. Jones said she had not heard of any and indicated the best way to enforce rules and cut down the abuse is toeducate users thru park signage along with an education campaign public awareness plan.Ms. Jones said the Umatilla County Fair has been Smoke-Free for 2-3 years and there has been no enforcementissues. The cities of La Grande and Roseburg both have Smoke Free parks and she has not heard of any problems.She stated she thinks the city of Roseburg has adopted No Tobacco Use into their Rule and Regulation. Ms. Jonessuggested the director to call both locations and see how they have handled and enforced the Smoke Free Rules.Director Fetter stated currently the Park rules for Hermiston Parks has no reference to tobacco use however it doesinclude no use of fireworks, no open flames. He stated when approving Funland for a Smoke Free site it was moreof a test to see if there would be any public reaction or resistance. He has heard very little from the public side.

Staff:

Larry Fetter, DirectorDan Earp, Recreation Supervisor

Gina Wicks, Department Assistant

Attendance: Briana Cortaberria Jean Stahlberg Carlisle Harrison

Steve WilliamsLisa Garcia

Mike Kay Ryan Severs Jackie Myers, Council Liaison Doug Primmer, Council Liaison

Members stated additional focus sites for a Smoke Free environment should include the new Skate Park, Hodge Park, McKenzie Park, these places where students seem to hang out and The Oxbow Trail where fire could be very damaging to the area. Mr. Fetter told members he will have a conversation with the Police Chief to see from an enforcement side what he would recommend, whether it should be a Rule or an Ordinance. He will also contact other Smoke Free Park Districts to see how the ban smoking policy has worked for them then report back to the committee at the January meeting.

C) 2017 Work Program• Work will start on the Harkenrider Center• Complete Trail Interpretive Panels• Complete VSP, parking lot• Complete SSE, image of grass growth from hydro seeding, next phase will be playground - image of what

appeared to be rustic beach wood for playground structure with rock elements.• Belt Park Westland, working on a Grant to create a pond• Greenwood Park, image• Skate Park, Request for Quote - holding off for more information.• Disc Golf, land update – 12 acres under consideration with 35 acres needing to be approved by Hospital

Board of Directors

Discussions continued from committee related to M. Kay stating 80% of incidents happens on rocks in playgrounds so advised keeping that in mind. R. Severs stated that most skaters just want a place to go skate so questioned why skating elements couldn’t be added to certain parks without having it labeled as Skate Park. Severs stated his concern that if it a park was called a Skate Park then it could potentially keep potential users away. He suggested adding guard rails, stairs, tables and other cement elements skaters in a park that has multi-uses. Director Fetter agreed it is important to find a place for teens to go, hang out and skate but also a site that appeals to other groups of people. Mr. Fetter stated he does not want this to be a mono use park that only attracts skateboards but will appeal to a much broader group. He would like it to be a well lite, safe location that is not a mono use facility and the property on First Street across from police department would be an ideal location.

Next meeting is scheduled for November 17th.

Meeting adjourned at 6:25pm

Hermiston Airport Advisory Committee Minutes February 1, 2017

4:00 P.M.

Members Present: Mike Martin, Ron Osgood, Ron Linn, Tim Beinert, and Dan Burns. City Representative: Mark Morgan. Airport caretakers: Absent Visitors:Minutes: December minutes approved on a motion by Mike Martin. Minutes approved. Airport Caretaker Report: Susie Rawe was absent but provided the Monthly Managers Report. This report was reviewed by the committee. Note that fuel sales were down due to the inclement weather and lack of aircraft operations. The storage shed has been constructed and is in use.

Financial report: Reviewed. On schedule with our budgeted calendar year.

Old Business: • Rinse out facility DEQ testing: The initial findings regarding soil contamination

around the rinsate facility indicates no significant traces of chemical content. Final test report not yet compiled.

• Lowman Helicopter Lease: With understanding that Lowman Helicopter had aground lease arrangement that required development to start prior to the end of 2016,and given now no work has started, we the committee recommend a letter ofnotification should be sent advising of this lease status.

New Business:

• East security fencing damage: The east airport boundary security fencing receivedsome damage due to an automobile accident. The fence repair will be completedsoon.

• Critical Oregon Airport Relief grant (COAR): Application has been made forgrant funds to enable the Airport Master Plan project.

• Airport Master Plan: Upon review by the Airport Advisory Committee it is ourrecommendation to the City of Hermiston that Century West Engineering be selectedas the Airport Master Plan project engineers. The Airport Master Plan is a realisticplan to guide the future operations and development of Hermiston Municipal Airportfor the next twenty years and beyond. This plan will effectively demonstrate to theFederal Aviation Administration (FAA) that proposed improvements are consistentwith all FAA planning and design criteria and meet the eligibility criteria for AirportImprovement Program (AIP) funding.

Meeting adjourned: 5:05pm

Next meeting: March 1, 2017 at 4:00pm

Respectfully submitted by:

Ronald Osgood, Secretary

FAITH-BASED ADVISORY COMMITTEE February 7th, 2017

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Present were Pastors James Lafolette, Terry Cummings, and Dean Hackett. Jeff Snell and Daniel Maxwell were excused. Also in attendance were Councilor Rod Hardin and Lilly Alarcon-Strong.

Dean opened the meeting in prayer at 4:40 pm.

Minutes- Dean moved and Terry seconded to approve the meeting minutes of the January 3rd. Motion carried unanimously.

Terry introduced the new Police Department Chaplain Jim Simpson. The Committee welcomed Jim.

(Terry and Jim exited the meeting 4:45pm)

Family Promise Update- The Committee inquired if Rod would be able to continue to be on the Family Promise Board as he is no longer a Committee member. Both Rod and Lilly thought that he would be able to continue on this Board as a citizen member and with ties to the Faith-Based community. Rod stated he would double check with City Manager Smith regarding this issue.

James stated Kriss has scheduled the first mentor training on Feb 18th for the families that have signed up and have been approved. If there are any other families that the Committee knows of who would make a positive impact and are interested in being involved, please have them contact Kriss. James emphasized how important it is that the mentor families complete the program with the families they are assigned, as the mentee families are accustomed to not following through or having others abandon them.

James stated he has been in contact with individuals from ESD for grant writing opportunities. James stated it is important that the Committee seek out these financial opportunities before funds are depleted. James stated the Committee also has to work on payroll deduction information and suggested the Committee take a look at Ministry Works, as well as local organizations that could help with these items.

James stated Parks and Recreation Director Larry Fetter has informed the Committee that the next Recycling Day Event will be April 8th from 9:00am to 3:00pm. Larry has asked that the faith based community help with this event like they have in the past. The Committee stated they would be happy to continue to help with this event, as well as reach out to other congregations to see if they are willing to help.

James asked Dean if he would be able to run the Committee Meeting on March 7th as he will be out of town.

Dean agreed, and stated he will be reaching out to Pastor Terry Haight from Hermiston Assembly of God to be on next month’s agenda as Pastor Terry Haight would like to expand “I Love My City” to all area churches. The Committee thought this was a great idea and opportunity to strengthen ties within the faith based community and the city as a whole.

There was no other business and James adjourned the meeting in prayer at 5:15pm.

ORDINANCE NO. 2243

AN ORDINANCE CORRECTING CERTAIN BAD CROSS-REFERENCE S (i.e. LINKS TO NON-EXISTENT SECTIONS OF THE HERMISTON CODE OF ORDINANCES

THE CITY OF HERMISTON DOES ORDAIN AS FOLLOWS:

(New Language is underlined and deleted language has a line through it.

Section 1. Section 73.256 of Chapter 73 Bicycles of the Hermiston Code of Ordinances is renumbered from “73.256" to “73.26" and is amended to read:

73.256 ISSUANCE OF CERTIFICATE BY POLICE; RECORDS.

(A) The Police Department is hereby authorized and directed to issue bicycle certificates of title which shall be good until revoked. Such certificates, when issued, shall entitle the holder thereof to operate such bicycle for which the certificate was issued upon the streets, alleys, or public highways of the city, exclusive of the sidewalks, except as hereinafter provided. The Police Department may issue a bicycle certificate of title for a bicycle when so requested by the owner. The Police Department shall charge a fee for issuing a certificate as established by resolution of the City Council.

(B) The Chief of Police may issue to each bicycle dealer certificate of title forms which shall be executed in duplicate at time of sale of each bicycle, the original thereof which shall be delivered to the purchaser, the duplicate forwarded within 24 hours to the Chief of Police. The certificate of title form shall include such information as the make and model of the bicycle sold, the color thereof, the frame number, date of sale, name and address of purchaser, and such other information as the Chief of Police may direct. There will be no fee for the issuance of such certificate.

(C) The purchaser shall promptly take the certificate to the Police Department which shall issue a number therefor, and will cause the identical number to be stamped upon the underside of the sprocket of the bicycle. The Police Department will maintain a record of the bicycle by name and address of certificate holder, together with complete description of the bicycle and any other information which might serve to promptly identify the bicycle.

(Ord. 558, passed 12-22-65)

Section 2. Section 73.267 of Chapter 73 Bicycles of the Hermiston Code of Ordinances is renumbered from “73.267" to “73.27" and the caption is amended to read:

73.27 SAFE MECHANICAL CONDITION

Section 3. The Cross-reference to “Bureau of Fire Prevention, see § 91.03" is deleted from CHAPTER 32 Boards, Committees, Commissions And Departments of the Hermiston Code of Ordinances as the bureau no longer exists.

Section 4. Remove the link “91.99" for Ordinance 1976 in the “Reference to Ordinances” in the table of Parallel References of the Code of Hermiston as Chapter 91 of the Code is reserved for future expansion.

Section 5. The Cross-reference in Chapter 94 Streets and Sidewalks of the Code of Hermiston is amended to read:

Cross-reference: Moving buildings, see §§152.25 through 152.31 Spitting on sidewalks, see §130.13 130.08

Section 6. The Cross-reference in Section 131.04 of Chapter 131 Graffiti of the Code of Hermiston is amended to read:

Cross-reference: Parental responsibility for minors, see § 130.15 130.11

Section 6. The Cross-reference in Section 133.99 of Chapter 133 Curfew of the Code of Hermiston is amended to read:

Cross-reference: Attempt to commit offenses, see § 130.12 Parental responsibility for minors, see § 130.15 130.11

Section 7. Change the link “156.72" for Ordinance 1840 in the “Reference to Ordinances” in the table of Parallel References of the Code of Hermiston to 157.001.

Section 8. Remove the link to “157.99" for Ordinance 1976 in the “Reference to Ordinances” in the table of Parallel References of the Code of Hermiston as there is no section “157.99" in Chapter 157.

Section 9. Effective Date. This ordinance is effective on the 30th day after adoption, to-wit: April 19, 2017.

PASSED by the Council this 20th day of March, 2017. SIGNED by the Mayor this 20th day of March, 2017.

Attest: ______________________________ MAYOR

___________________________ ASSISTANT CITY RECORDER

STAFF REPORT

For Meeting of March 20th, 2017

MAYOR AND MEMBERS OF THE CITY COUNCIL

Agenda Item #

NO. 2017-

SUBJECT:

Ordinance No. 2244

SubjectAN ORDINANCE AMENDING SECTION 112.13, ENTITLED "EXEMPTIONS," OF

CHAPTER 112 TRANSIENT ROOM TAX OF THE CODE OF HERMISTON ANDDECLARING AN EMERGENCY.

Summary and BackgroundWith the Holiday Inn now open and registered to pay the Transient Room Tax (TRT)and the Tourism Promotion Fee (TPF), a question came up about why the City's Codedid not have a provision exempting federal employees on official business from thosetaxes while the state of Oregon has such an exemption. Although my research wasunable to uncover any federal or state law or court cases directly on point dealing withtransient room taxes, I found a lot of law that says a state or local government cannottax the federal government and its instrumentalities and, by extension, their employeeswhile conducting official business.

Fiscal InformationGiven the fact that the issue of exempting federal employees from the TRT was notraised in the past, it appears that exempting federal employees while on officialbusiness will have a negligible fiscal impact. The employees of the state of Oregon andother states and employees of other cities and other local jurisdictions on officialbusiness are not exempt and must pay the taxes.

RecommendationI recommend approval of Ordinance No. 2244.

Requested Action/MotionApprove Ordinance No. 2244 amending Section 112.13 of the Hermiston Code anddeclaring an emergency.

m.ijj^r(//,<)(Submitted by: Gary Luisi, Ci

City Manager Approval

City of Hermiston

1 Page of Ordinance No. 2244

ORDINANCE NO. 2244

AN ORDINANCE AMENDING SECTION 112.13, ENTITLED “EXEMPTIONS,” OF CHAPTER 112 TRANSIENT ROOM TAX OF THE CODE OF HERMISTON AND DECLARING AN EMERGENCY.

WHEREAS, the City of Hermiston adopted a Transient Room Tax in 1991;

WHEREAS, the State of Oregon adopted a State Transient Lodging Tax in 2003 requiring “transient lodging providers” to collect, report and pay a state lodging tax to the state in addition to existing local transient room taxes;

WHEREAS, in 2005 the State of Oregon adopted ORS 320.208 which created certain exemptions from the State Transient Lodging Tax;

WHEREAS, The Oregon Department of Revenue promulgated Oregon Administrative Regulation (OAR) 150-320-0050, entitled “State Lodging Tax Exemptions,” which interprets the exemptions under ORS 320.208 and adopts certain exemptions not provided by ORS 320.208 to regulate the Department’s procedures for collection of the state lodging tax;

WHEREAS, in addition to similar exemptions provided by the Hermiston City Code (HCC) and ORS 320.208, OAR 150-320-0050 exempts federal employees or employees of federal instrumentalities, (i.e. American Red Cross), on official business and persons with diplomatic immunity from the state lodging tax.

WHEREAS, OAR 150-320-0050 does not exempt from the state lodging tax:

1) a member or employee of a non-profit organization; and2) employees of state and local governments of Oregon or any other state.

WHEREAS, it appears that the federal government and instrumentalities of the federal government are exempt from paying transient room taxes to the states and local governments under the federal Supremacy Clause, Article 6, Section 2 of the US Constitution, and McCulloch v. Maryland, 17 U.S. 316 (1819), and by extension employees thereof. According to a leadingtreatise on state taxation, “[f]ederal employees acting within the scope of their official function clearly are federal instrumentalities. The federal government cannot act except through its employees.;”

WHEREAS, a transient lodging provider or transient lodging intermediary currently is required by City ordinance to collect the City’s transient lodging tax from federal employees acting in their official capacity, which is contrary to federal law; now, therefore,

THE CITY OF HERMISTON DOES ORDAIN AS FOLLOWS:

(New language is in italics and language to be deleted has a strike through it.)

2 Page of Ordinance No. 2244

Section 1. Section 112.13 “Exemptions” of Chapter 112 Transient Room Tax of the Code of Hermiston is amended as follows:

112.13 EXEMPTIONS AND NON-EXEMPTIONS.

(A) No tax imposed under this chapter shall be imposed upon:

(1) Any occupant for more than 30 successive calendar days. (A person who pays for lodging on-a-monthly basis, irrespective of the number of days in the month, shall not be deemed a transient.)

(2) Any occupant whose rent is of a value less than $3 per day.

(3) Any person who rents a private house, vacation cabin, or like facility from any owner who rents the facilities incidentally to his own use thereof.

(4) Any occupant whose rent is paid for a hospital room or to a medical clinic, convalescent home or home for aged people, to a public institution owned and operated by a unit of government, to a shelter home, halfway house or other rehabilitation facility.

(5) Federal employees and employees of federal instrumentalities, (i.e.: American Red Cross), on official business. (A member or employee of a non-profit organization and employees of state and local governments of Oregon or any other state are required to pay any tax imposed under this chapter.)

(6) Persons with diplomatic immunity.

Section 2. Emergency. To bring the collection of City transient room taxes and the City Tourism Promotion Assessment Charge in align with federal and diplomatic law, an emergency is declared to exist and this ordinance is effective upon its passage by the council and is retroactive to January 1, 2017, since the collection of the taxes accrue on the last day of the quarter.

PASSED by the Council this 20th day of March, 2017 SIGNED by the Mayor this 20th day of March, 2017.

______________________________ Attest: MAYOR

____________________________ ASSISTANT CITY RECORDER

City of Hermiston

Subject Resolution adopting an updated Employee Handbook.

Summary and Background In November of 2015, the City’s Employee Handbook was adopted after extensive revisions to bring us into compliance with current law and regulations.

The handbook serves as a key document in guiding the activities of city managers, supervisors and employees. It is necessary to keep it current with current law and regulations. This year three situations came to our attention that required changes to the employee handbook. Below is a summary of the three changes:

• Our policy on the use of cell phones was very inconsistent. Different departmentswere doing different things. We had a couple of different providers and it wasdifficult to get changes made to the City’s contractual plan. As research wasdone it was discovered that the State of Oregon Ethics Commission had alsoissued guidelines that we were not fully compliant with.

o The proposed policy either issues a cell phone that can only be used forwork business except for emergencies, or

o It pays a $40 stipend for those employees that use their personal cellphone for work.

• In March of 2016, the State of Oregon passed into law HB4067 related toincreased protection for whistleblowers. We were required to have this in ourpolicies and this added protection is now included in the proposed policies.

• Recently, the Parks Department has been working a crew for nine months andnot for just six months that meets our current employee classifications.

o The proposed policy adds a third employee classification that allows for upto a nine month appointment and offers limited benefits (employee onlyinsurance coverage and sick leave).

Fiscal Information The cell phone policy change will approximately cost us an additional $500 per month. The employee classification changes are going to cost us approximately $1200 per month during the nine working months. The retaliation policy has no direct financial impact to the City.

STAFF REPORT

For Meeting of March 20, 2017


Agenda Item #

NO. 2017- SUBJECT: Employee Handbook Changes

City of Hermiston

Recommendation I recommend approval of Resolution No. 2055.

Requested Action/Motion Approve Resolution No. 2055 adopting an updated Employee Handbook.

City Manager

RESOLUTION NO.2055

A RESOLUTION TO ADOPT EMPLOYEE HANDBOOK DATED MARCH 20, 2017 AS EMPLOYEE POLICIES OF THE CITY OF HERMISTON

WHEREAS, the common council of the City of Hermiston is the policy making board for the City of Hermiston and establishes the policy parameters for employment, and

WHEREAS, the policies of the City of Hermiston have been prepared and consolidated in a document known as the “Employee Handbook”, and

WHEREAS, it will be necessary for these policies to change periodically to meet changing conditions in the community, the state, and the nation.

NOW, THEREFORE BE IT RESOLVED by the common council of the City of Hermiston, Umatilla County, Oregon, that Resolution No. 2004 is hereby rescinded and that the document known as the “Employee Handbook” dated March 20, 2015 be adopted as the employee policies of the City of Hermiston, and

BE IT FURTHER RESOLVED that the City Manager may promulgate temporary employee rules, and that the common council may from time to time, alter or include employee policies by approved motion of the common council.

This resolution shall become effective immediately upon its passage as of the date and year set out below:

PASSED by the Common Council this 20th day of March, 2017. SIGNED by the Mayor this 20th day of March, 2017.

_________ MAYOR

ATTEST:

DEPUTY CITY RECORDER

City of Hermiston

Subject Long-term Leases between the Eastern Oregon Trade and Event Center and the Umatilla County Fair and Farm-City Pro Rodeo.

Summary and Background In paragraph 5(a) of Section III of the Intergovernmental Agreement that established EOTEC it states as the first listed power and authority of the Board of Directors “Own, control, construct, manage, operate, and lease all EOTEC real and personal property, and make contracts and agreements related thereto including leases of all of EOTEC and its property provided all agreements and leases must be for five years or less unless approved by Umatilla County and the City of Hermiston.”

The language in this paragraph is what brings this issue into the purview of the City Council and the County Commissioners. These leases have been negotiated and have been approved by the board of directors of the EOTEC.

There are three leases that have been approved by the EOTEC Board and need approval of the City Council and the County Commissioners. They are the following:

Mercantile to Farm-City

• For the Southern 120’ of the Rodeo arena area• Term – 30 years plus additional 20 years• Year round use (EOTEC can request to use for events)• $500 per year for rent• Farm-City pays all utilities and any taxes on this area• Farm-City will build mercantile building at their expense

Rodeo Arena to Farm-City

• For the arena and surrounding area including the east 20 acresadjoining Ott Road

• Term – 50 years• Fair week use with access at other times to prepare for event• $10,000 per year for rent with the ability to get credit for capital

improvements paid for by Farm-City.• Farm-City pays all utilities for the week of usage• Farm-City will be paying for some additional permanent bleachers

and for installing lights.Fairgrounds • For the remaining area of the developed EOTEC grounds including

STAFF REPORT

For Meeting of March 20, 2017


Agenda Item #

NO. 2017- SUBJECT: Approve EOTEC Leases

City of Hermiston

to Umatilla County Fair

the 20 acres extending to E. Airport Road includes storage area and office space.

• Term – 50 years• Fair week plus three weeks prior and two weeks after

o Includes dates for fair related events and fair board meetings• $10,000 per year for rent with the ability to get credit for capital

improvements paid for by Umatilla County Fair.• UCF pays for all utilities and janitorial for the time they use the

facility.• Umatilla County has built a secure storage area on the property.

Fiscal Information See above.

Recommendation I recommend approval of Leases with Umatilla County Fair and Farm-City Pro Rodeo.

Requested Action/Motion Approve Leases with Umatilla County Fair and Farm-City Pro Rodeo.

City Manager

1 – Lease – EOTEC to Umatilla County Fair

LEASE Fairgrounds

Effective Date: ______________, 2017 Between: Eastern Oregon Trade and Events Center Authority, pursuant to

an Intergovernmental Agreement between Umatilla County and the City of Hermiston, Oregon 1705 E. Airport Road Hermiston, Oregon 97838 (“EOTEC”)

And: Umatilla County Fair/Umatilla County 1705 E. Airport Road Hermiston, Oregon 97838 (“UCF”)

Recitals:

A. EOTEC owns certain real property in Hermiston, Umatilla County, Oregon, described at Exhibit A. Upon said real property is, or will be constructed, an event center, animal barns related improvements (the “Premises”). The Premises are that real property and improvements depicted at Exhibit B, together with that 20-acre unimproved parcel situated immediately west of the driveway off of East Airport Road.

B. UCF desires to use the Premises for purposes of holding an annual county fair and EOTEC desires that UCF have the use of the Premises for the same. Therefore, EOTEC hereby leases the Premises to UCF on the terms and conditions stated below.

Agreement:

Section 1. Occupancy 1.1 Term. Term. The term of this Lease shall be for the following periods:

1.1.1 Fair Week. UCF shall have exclusive use and occupation of the Premises Sunday through Saturday of that week in August in which the Umatilla County Fair takes place (“Fair Week”), and for three weeks prior to Fair Week and two weeks after, for a period of fifty (50) years beginning with the effective date and ending after the fiftieth Fair Week after the Effective Date.

1.1.2 Additional Usage. UCF shall also have use of the premises for the following events:

• Fair Appreciation Dinner To Be Held in January of each year• Fair Court Appreciation Luncheon To be held in February of each year

Each of these dates will be established within two weeks of the prior year event being held.

• UCF will also have the use of two offices for Fair staff.• UCF will have access to the storage area. Access will not be exclusive.• UCF will have the use of the EOTEC Board Room for UCF Board

meetings held at least monthly. During the four to five months preceding


the fair, meetings become more frequent. During that time the UCF Board will work with EOTEC to find space for those meetings in conjunction with other scheduled events.

With the prior consent of EOTEC, which shall not be unreasonably withheld, UCF shall have the right, during said fifty-year term, in addition to Fair Week, to enter upon the Premises to make inspections, repairs and improvements as approved by EOTEC.

1.2 Purpose of Occupancy. With the prior consent of EOTEC, which shall not be unreasonably withheld, UCF’s tenancy shall be for the purpose of holding an annual county fair and attendant activities, including, but not limited to, hospitality or other “VIP” events, a beer garden, concerts, carnival, concessions, parking, and livestock shows. In particular, with respect to the 20-acre unimproved parcel, UCF shall have the use of that parcel for contestant or public parking, or the other uses permitted to UCF hereunder. UCF will have access to parking facilities during events.

1.2.1 Concessions. Regardless of whether EOTEC or the Farm-City Pro Rodeo have entered into agreements with any food, beverage or other concessions supplier, UCF shall have absolutely no limitations on its ability to contract with any concessions supplier for any concessions products. By way of example, if Coors is the exclusive provider of alcoholic beverages for the Farm-City Pro Rodeo in a given year, UCF shall not be obligated to serve Coors products but may instead serve Budweiser products or another brand. By way of further example, if the Farm-City Pro Rodeo contracts with a particular concessions supplier for food products, UCF shall not be obligated to contract with that supplier.

1.3 Other Proposed Concert Events. If EOTEC wishes to lease the Premises to any third party for any concerts during the period that is sixty days prior to the start of and thirty days after the end of Fair Week, EOTEC will first obtain UCF’s prior written consent, which consent shall not be unreasonably withheld by UCF.

Section 2. Rents, Utilities, and Other Charges 2.1 Basic Rent. UCF shall pay to EOTEC as rent the sum of TEN THOUSAND

DOLLARS ($10,000.00) per calendar year (or partial calendar year), payable no later than September 15th of each year, at EOTEC’s address. This rent clause is open for renegotiation between the end of Fair Week and the end of that calendar year each year in the first five years of this agreement. After the first five years of this agreement, the rent clause is open for renegotiation every five years during the above referenced time frame.

2.1.1 Rent Credit. UCF shall receive credit towards their basic rent based on improvements and work performed on the Premises. After all improvements are completed UCF and EOTEC will agree on the amount of contribution that will be allocated as rent credit.

2.1.2 Ticket Sales, Revenues. UCF shall keep all ticket sales, concessions revenues, merchandise sales, vendor fees, parking or stabling fees, or other revenue generated by UCF from the use of the Premises under this Lease and EOTEC shall have no share of the same.

2.2 Utilities and Taxes. UCF will pay the costs of all custodial (including supplies) and utilities, including electricity, natural gas, water, sewage, and all real property taxes assessed by Umatilla County against the Premises during Fair Week.

Section 3. Improvements 3.1 Construction of Improvements. EOTEC shall construct the improvements

portion of the Premises (as the Premises are defined at Recital A, above) as depicted at Exhibit B with the limitations of available funding. If at all possible construction shall be completed on or


before July 30, 2017. Ownership of all improvements shall remain with EOTEC, unless the parties agree otherwise, in writing.

3.2 Improvements Constructed on Unimproved Parcel. During the term of this Lease, EOTEC will not construct any improvements or make any changes to the 20-acre unimproved parcel situated along the entry road, which parcel may be used by UCF for those purposes set forth at section 1.2 without consultation with UCF. Consultation is not to be interpreted as requiring approval.

3.3 Alterations. UCF shall not make or permit any addition or alteration, structural or otherwise, to be made on the Premises without the prior discussion, agreement and written consent of EOTEC. Even if EOTEC consents to any such alteration, EOTEC shall not have any duty to reimburse UCF for the cost of any alterations made to the Premises by UCF, unless EOTEC and UCF otherwise agree, in writing. Any alteration shall belong to EOTEC unless the parties otherwise agree, in writing. This paragraph shall include alterations already made prior to the execution of this lease.

3.4 Lien-Free Construction. UCF will pay as due all claims for work done on the Premises and for services rendered or material furnished to the Premises, and will keep the Premises free from any liens caused by UCF’s failure to meet UCF’s obligations.

3.5 Personal Property Any personal property brought onto the Premises by UCF shall remain the property of UCF unless otherwise agreed by the parties in writing. UCF shall allow EOTEC the use of UCF’s personal property (including, but not limited to, UCF’s existing gates and panels, tractor, etc.) to facilitate the hosting of other events on the premises with prior written approval. Upon or at any time prior to termination of this Lease, UCF shall remove UCF’s personal property (including, but not limited to, UCF’s existing gates and panels, tractor, etc.) from the Premises. Any personal property not removed within ninety (90) days after termination of this Lease shall belong to EOTEC.

Section 4. Repairs and Maintenance 4.1 EOTEC’s Responsibilities. EOTEC will be responsible for all maintenance and

repairs related to the Premises and UCF’s personal property thereon, except as otherwise specified at section 4.2, below. EOTEC’s duties under this section shall include, but not be limited to, keeping fences and gates in good repair, keeping the Premises free of litter, mowing and watering grass areas, and maintaining the sound system and lighting in good working order.

4.2 Umatilla County Fair’s Responsibilities. UCF shall repair at its own expense any damage caused by UCF, its attendees, or any individual working under the direction of UCF, to the Premises or to UCF’s personal property thereon, this will include all impact of the fair operations.

4.3 EOTEC’s Right of Access. EOTEC will have the reasonable right to enter the Premises to make necessary inspections, make necessary or agreed repairs or carry out maintenance activities, supply necessary or agreed services, or otherwise to carry out EOTEC’s obligations under this Lease. UCF will not unreasonably withhold consent for EOTEC or EOTEC’s authorized agents to enter upon the Premises for purposes set forth in this section.

Section 5. EOTEC’s Funding The parties recognize that the revenue needed by EOTEC related to this Lease must be

approved by legally established budget procedures. All obligations and expenditures by EOTEC herein are contingent upon sources of revenue, and, where applicable, voter budget levy approval. In the event EOTEC is unable to obtain revenue to meet its obligations hereunder, then all provisions of this Lease relating to the loss of revenue shall be subject to good faith renegotiation between the parties upon request made by EOTEC.


Section 6. Insurance 6.1 UCF. During the term of this Lease, UCF shall maintain public liability and

property damage insurance with limits of not less than $1,000,000.00 for injury to persons and property. EOTEC shall be named as an additional insured. Such insurance shall cover all risks arising directly or indirectly out of UCF's activities in or on the Premises but only during those time periods as set out in sections 1.1.1 and 1.1.2; shall protect UCF against the claims of EOTEC on account of obligations assumed by UCF under section 7.1; and shall protect EOTEC and UCF against claims of third persons. Such policies shall be written in such form with such terms and such insurance companies reasonably acceptable to EOTEC. UCF shall deliver to EOTEC certificates of coverage from each insurer containing a stipulation that coverage will not be canceled or diminished without a minimum of ten days written notice to EOTEC. Proof of insurance shall be provided to EOTEC annually or by EOTEC’s other reasonable demand. Failure to provide proof of insurance will constitute grounds for termination of the Lease by EOTEC.

6.2 EOTEC. During the term of the Lease, EOTEC shall maintain public liability and property damage insurance with limits of not less than $1,000,000.00 for injury to persons and property. Such insurance shall cover all risks arising directly or indirectly out of EOTEC’s activities in or on the Premises; shall protect EOTEC against the claims of UCF on account of obligations assumed by EOTEC under section 7.2, and shall protect EOTEC and UCF against claims of third persons. Such policies shall be written in such form, with such terms and such insurance companies reasonably acceptable to UCF. EOTEC shall deliver to UCF certificates of coverage from each insurer containing a stipulation that coverage will not be canceled or diminished without a minimum of ten days written notice to UCF. Proof of insurance shall be provided to UCF annually or by UCF’s other reasonable demand. Failure to provide proof of insurance will constitute grounds for termination of the Lease by UCF.

Section 7. Indemnity 7.1 UCF. UCF shall forever defend, indemnify and hold EOTEC harmless from any

claim, loss or liability arising out of or in any way connected with UCF's possession or use of the Premises or UCF's conduct with respect to the Premises. In the event of any litigation or proceeding brought against EOTEC and arising out of or in any way connected with any of the above events, or claims, against which UCF agrees to defend EOTEC, UCF shall upon agreement by the EOTEC vigorously resist and defend such actions or proceedings through legal counsel.

7.2 EOTEC. To extent allowed and limited by the Oregon Constitution and the Oregon Tort Claims Act, EOTEC shall forever defend, indemnify and hold UCF harmless from any claim, loss or liability arising out of or in any way connected with EOTEC’s possession or use of the Premises or EOTEC’s conduct with respect to the Premises. In the event of any litigation or proceeding brought against UCF and arising out of or in any way connected with any of the above events, or claims, against which EOTEC agrees to defend UCF, EOTEC shall upon agreement by UCF vigorously resist and defend such actions or proceedings through legal counsel.

Section 8. Destruction. If the Premises are destroyed or damaged such that the cost of repair exceeds 40 percent of

their value before the damage, either party may elect to terminate the Lease as of the date of the damage or destruction by notice given to the other in writing not later than 45 days following the date of damage. In such event, all rights and obligations of the parties shall cease as of the date of


termination and UCF shall be entitled to the reimbursement of any prepaid amounts paid by UCF and attributable to the anticipated term. If neither party elects to terminate, EOTEC shall proceed to restore the Premises to substantially the same form as prior to the damage or destruction. Work shall be commenced as soon as reasonably possible and thereafter shall proceed without interruption except for work stoppages on account of labor disputes and matters not under EOTEC’s control.

Section 9. Eminent Domain If a condemning authority takes all of the Premises or a portion sufficient to render the

remaining Premises reasonably unsuitable for UCF’s use, the Lease will terminate as of the earlier of the date that title or possession is taken by the condemning authority. EOTEC will be entitled to all of the proceeds of condemnation, except that UCF shall be entitled to all proceeds arising out of UCF’s leasehold interest, and UCF will have no claim against EOTEC as a result of the condemnation.

Section 10. Quiet Enjoyment EOTEC warrants that EOTEC is the owner of the Premises, that EOTEC has the right to

lease them, and that UCF will be entitled to quiet enjoyment of them during the term of the Lease. UCF shall not interfere with the quiet enjoyment by EOTEC of EOTEC’s other real property or of these premises outside the timeframe of this lease, nor with the quiet enjoyment of any of EOTEC’s other tenants or invitees.

Section 11. Assignment and Sublease UCF may sublease any part of the Premises without the prior consent of EOTEC. UCF

may not assign this Lease, in whole or in part.

Section 12. Default; Remedies 12.1 Default. The following will be events of default: (1) Failure by UCF to pay any

rent or other amount required to be paid by UCF to EOTEC under this Lease within 10 days after the giving of written notice of such nonpayment by EOTEC to UCF; (2) Failure by UCF to secure or maintain any insurance or provide evidence of insurance as required by this Lease and the continuation of such failure for more than 10 days after notice by EOTEC; or (3) Failure of UCF to comply with any term or condition or fulfill any obligation of this Lease within 30 days after written notice by EOTEC specifying the nature of the default with reasonable particularity. If the default is of such a nature that it cannot be completely remedied within the 30-day period, this provision will be complied with if UCF begins correction of the default within the 30-day period and thereafter proceeds with reasonable diligence and in good faith to affect the remedy.

12.2 Remedies on Default. If UCF defaults, this Lease may be terminated at the option of EOTEC by written notice to UCF. Whether or not this Lease is terminated by the election of EOTEC or otherwise, EOTEC will be entitled to recover damages from UCF for the default, and EOTEC may reenter, take possession of the Premises, and remove any persons or property by legal action or by self-help with the use of reasonable force and without liability for damages and without having accepted a surrender. Following reentry, EOTEC will use reasonable efforts to relet the Premises. The foregoing remedies will be in addition to and will not exclude any other remedy available to EOTEC under applicable law.

Section 13. Miscellaneous 13.1 Nonwaiver. Waiver by either party of strict performance of any provision of this


Lease, including acceptance by EOTEC of late payment of rent, will not waive or prejudice the party’s right to require strict performance of the same provision in the future or of any other provisions.

13.2 Attorney Fees and Costs. If suit or action is instituted in connection with any controversy arising out of this Lease, each party will pay its own attorney fees and costs.

13.3 Notices. Any notice permitted or required hereunder shall be in writing and shall be deemed given on the date deposited in the U.S. mail as certified or registered mail, postage prepaid and addressed to the parties at their addresses shown above. Such addresses may be changed by either party, by ten days' written notice to the other party.

13.4 Succession. Subject to the provisions of section 11, this Lease will be binding on and inure to the benefit of the parties and their respective successors and permitted assigns.

13.5 Number, Gender, and Captions. As used in this Lease, the singular includes the plural, and the plural the singular. The masculine and neuter each include the masculine, feminine, and neuter, as the context requires. All captions used in this Lease are intended solely for convenience of reference and in no way limit any of the provisions of this Lease agreement.

13.6 Prior Agreements. This document is the entire, final, and complete agreement of the parties pertaining to the Lease and supersedes and replaces all written and oral agreements heretofore made or existing by and between the parties or their representatives insofar as the Lease or the Premises are concerned (save and except for the application, if any, recited in this Lease).

13.7 Modification. No modification of this Lease will be valid unless in writing and signed by the parties hereto.

The parties have executed this Lease effective as of the date first written above. EOTEC:

By:Print Name: Its: Dated: , 2017

Umatilla County Fair:

By: Print Name: Its: Dated: , 2017

Umatilla County:


City of Hermiston:


1 – Lease – EOTEC to Farm-City Pro Rodeo – Mercantile Area

LEASE Mercantile Area

Effective Date: , 2016

Between: Eastern Oregon Trade and Events Center Authority, pursuant to an Intergovernmental Agreement between Umatilla County and the City of Hermiston, Oregon 1705 E. Airport Road

Hermiston, Oregon 97838 (“EOTEC”)

And: Farm-City Pro Rodeo Company, an Oregon Non-Profit Corporation 495 E. Main Hermiston, Oregon 97838 (“Farm-City”)

Recitals:

A. EOTEC owns certain real property in Hermiston, Umatilla County, Oregon, described at Exhibit A, which property measures approximately 410’ by 120’ (the “Premises”). Upon said real property, Farm-City will construct certain permanent and temporary improvements. The Premises and preliminary depictions of improvements that might be constructed thereon are depicted at Exhibit B.

B. Farm-City desires to use the Premises for purposes of holding events related to an annual rodeo and EOTEC desires that Farm-City have the use of the Premises for the same. Therefore, EOTEC hereby leases the Premises to Farm-City on the terms and conditions stated below.

Agreement:

Section 1. Occupancy and Improvements 1.1 Term. The term of this Lease shall be for a period of thirty (30) full lease years

(three hundred sixty (360) calendar months), beginning on January 1, 2017 (the "Commencement Date"). If both parties are satisfied with the terms of this lease at its conclusion, the lease may extend for an additional twenty (20) full lease years (two hundred forty (240) calendar months) with no further action. If either party is dissatisfied with the terms of this lease at its conclusion, either party may notify the other within the last twelve (12) calendar months of the lease term in writing and new lease terms may be negotiated. Notwithstanding the provisions of this paragraph, the parties acknowledge that they are bound to each other in accordance with the terms of this Lease from and after the date of mutual execution of this Lease, subject to the conditions set forth in this Lease.

1.1.1 Extension of the Lease. During the last two years of the lease the parties shall negotiate in good faith to extend the lease. The terms of the lease shall be the same as in this agreement, as hereafter amended, except as the parties may otherwise agree in writing.

1.2 Purpose of Occupancy. Farm-City’s tenancy shall be for the purpose of holding


rodeo-related and other activities, including, but not limited to, office and other management activities, hospitality or other “VIP” events, a beer garden, dances, concerts and concessions. Any attempted or requested change to such permitted use or other material change to the marketing orientation or quality of operation of the business within the Property (whether by Farm-City or by any proposed sub-lessee) is subject to the advance written approval of EOTEC which shall not be unreasonably withheld.

1.2.1 Concessions. Regardless of whether EOTEC or the Umatilla County Fair have entered into agreements with any food, beverage or other concessions supplier, Farm-City shall have absolutely no limitations on its ability to contract with any concessions supplier for any concessions products. By way of example, if Coors is the exclusive provider of alcoholic beverages for the Umatilla County Fair in a given year, Farm-City shall not be obligated to serve Coors products but may instead serve Budweiser products or another brand. By way of further example, if the Umatilla County Fair contracts with a particular concessions supplier for food products, Farm-City shall not be obligated to contract with that supplier.

1.3 Tenant's Work. Farm-City shall develop the Property in accordance with this Lease, and as depicted in Exhibit B. Farm-City shall cause all of Farm-City’s work to be performed in conformance with a valid permit, diligently to completion, and in a good and workmanlike manner.

1.4 Initial Improvement Review and Approval. With signing of the lease EOTEC accepts and approves development of the Property as depicted in Exhibit B.

1.5 Alterations. Farm-City shall make no alterations in excess of thirty thousand dollars ($30,000) to the Property without EOTEC's prior written consent. All alterations shall be made in a good and workmanlike manner. Any alterations and fixtures installed by Farm-City shall become part of the Property and belong to EOTEC on expiration or termination of this Lease, except as EOTEC may otherwise approve in writing.

1.6 Acceptance of Property. Farm-City accepts the land and all other aspects of the Property in its present condition, AS IS. EOTEC shall not be required to perform any work to ready the Property for Farm-City's occupancy. Power, water and sewer are included in the property.

Section 2. Rents, Utilities, and Other Charges 2.1 Basic Rent. Farm-City shall pay to EOTEC annually $500 to be used for

future capital maintenance and replacement needs for common area facilities like but not limited to parking lots, water/wastewater infrastructure. In addition to this basic rent, it is recognized in this lease that Farm-City intends to construct a facility with a minimum value of $500,000 as an additional contribution to EOTEC.

2.1.1 Ticket Sales, Revenues. Farm-City shall keep all ticket sales, concessions revenues, merchandise sales, vendor fees, or other revenue generated by Farm-City from the use of the Premises under this Lease and EOTEC shall have no share of the same except as separately agreed upon by Farm-City on an event basis.

2.2 Utilities and Taxes. Farm-City will be responsible for any and all property taxes (personal or real) assessed by Umatilla County against the Premises. Farm-City will be


responsible for and pay the cost of all utilities related to the Premises, including electricity, natural gas, water, sewage, garbage collection and disposal, and telephone, during the lease term.

Section 3. Improvements 3.1 Lien-Free Construction. Farm-City will pay as due all claims for work done on

the Premises and for services rendered or material furnished to the Premises, and will keep the Premises free from any liens caused by Farm-City’s failure to meet Farm-City’s obligations.

3.2 At Lease End. All Improvements that Farm-City may construct on the Property will be the property of Farm-City during the term of this Lease and any such Improvements remaining on the Property at the expiration or earlier termination of this Lease (if any) will become a part of the realty and will be the property of EOTEC. EOTEC will also have the right to require Farm-City to demolish and remove any Improvements. Should EOTEC so elect, it will provide written notice to Farm-City to remove the Improvements at least thirty (30) days before the end of the lease term or early termination of the Lease by EOTEC. Upon receipt of such notice, Farm-City shall demolish and remove any Improvements, fill any excavation, and restore all damage caused by such removal within a period not to exceed ninety (90) days. If Farm-City fails to do so, this shall be an abandonment of the Improvements and EOTEC may retain the Improvements and all rights of Farm-City with respect to it shall cease or, by notice in writing given to Farm-City within twenty (20) days after removal was required, EOTEC may elect to hold Farm-City to its obligation of removal. If EOTEC elects to require Farm-City to remove, EOTEC may effect a removal and place any personal property in public storage for Farm-City’s account. Farm-City shall be liable to EOTEC for the cost of removal, restoration, transportation to storage, and storage, with interest on all such expenses.

3.3 Fixtures. Upon expiration of the lease term or earlier termination on account of default or other event, Farm-City shall remove all of its furnishings, furniture, and trade fixtures that remain the property of Farm-City and restore all damage caused by such removal.

Section 4. Repairs and Maintenance 4.1 EOTEC’s Responsibilities. EOTEC will be responsible for the following

maintenance and repairs related to the Premises and improvements thereon: all repairs and maintenance needs caused by EOTEC or one of its tenants of the Rodeo Grounds.

4.2 Farm City’ Responsibilities. Except for EOTEC’s duties set forth at section 4.1, above, Farm-City will be responsible for all maintenance and repairs to the Premises and improvements thereon and will keep the same in a neat and clean appearance and in good working order.

4.3 EOTEC’s Right of Access. EOTEC will have the reasonable right to enter the Premises and Farm-City’s improvements thereon to make necessary inspections, make necessary or agreed repairs or carry out maintenance activities, supply necessary or agreed services, or otherwise to carry out EOTEC’s obligations under this Lease. Farm-City will not unreasonably withhold consent for EOTEC or EOTEC’s authorized agents to enter upon the Premises for purposes set forth in this section.


Section 5. Coordination and Ability to Use 5.1 Coordination. EOTEC and Farm-City will both be responsible to coordinate any

events outside of the Fair/Rodeo week with each other so as not to create conflicts. If there is a conflict between events EOTEC’s decision at scheduling time is final.

5.2 EOTEC’s Ability to Use. EOTEC will have the ability to utilize the Premises to host events with consent from Farm-City with payment if any determined by the type of event to be hosted.



Section 7. Insurance 7.1 Farm-City. During the term of this Lease, Farm-City shall maintain public liability

and property damage insurance with limits of not less than $1,000,000.00 for injury to persons and property. EOTEC shall be named as an additional insured. Such insurance shall cover all risks arising directly or indirectly out of Farm-City's activities in or on the Premises during the term of this Lease; shall protect Farm-City against the claims of EOTEC on account of obligations assumed by Farm-City under section 7.1, and shall protect EOTEC and Farm-City against claims of third persons. Such policies shall be written in such form with such terms and such insurance companies reasonably acceptable to EOTEC. Farm-City shall deliver to EOTEC certificates of coverage from each insurer containing a stipulation that coverage will not be canceled or diminished without a minimum of ten days written notice to EOTEC. Proof of insurance shall be provided to EOTEC annually or by EOTEC’s other reasonable demand. Failure to provide proof of insurance will constitute grounds for termination of the Lease by EOTEC.

7.2 EOTEC. During the term of the Lease, EOTEC shall maintain public liability and property damage insurance with limits of not less than $1,000,000.00 for injury to persons and property. Such insurance shall cover all risks arising directly or indirectly out of EOTEC’s activities in or on the Premises; shall protect EOTEC against the claims of Farm-City on account of obligations assumed by EOTEC under section 7.2, and shall protect EOTEC and Farm-City against claims of third persons. Such policies shall be written in such form, with such terms and such insurance companies reasonably acceptable to Farm-City. EOTEC shall deliver to Farm-City certificates of coverage from each insurer containing a stipulation that coverage will not be canceled or diminished without a minimum of ten days written notice to Farm-City. Proof of insurance shall be provided to Farm-City annually or by Farm-City’s other reasonable demand. Failure to provide proof of insurance will constitute grounds for termination of the Lease by Farm- City.

Section 8. Indemnity


8.1 Farm-City. Farm-City shall forever defend, indemnify and hold EOTEC harmless from any claim, loss or liability arising out of or in any way connected with Farm-City's possession or use of the Premises or Farm-City's conduct with respect to the Premises. In the event of any litigation or proceeding brought against EOTEC and arising out of or in any way connected with any of the above events, or claims, against which Farm-City agrees to defend EOTEC, Farm-City shall upon agreement by the EOTEC vigorously resist and defend such actions or proceedings through legal counsel.

8.2 EOTEC. To extent allowed and limited by the Oregon Constitution and the Oregon Tort Claims Act, EOTEC shall forever defend, indemnify and hold Farm-City harmless from any claim, loss or liability arising out of or in any way connected with EOTEC’s possession or use of the Premises or EOTEC’s conduct with respect to the Premises. In the event of any litigation or proceeding brought against Farm-City and arising out of or in any way connected with any of the above events, or claims, against which EOTEC agrees to defend Farm-City, EOTEC shall upon agreement by Farm-City vigorously resist and defend such actions or proceedings through legal counsel.

Section 9. Destruction If the Premises or the improvements thereon are destroyed or damaged such that the cost

of repair exceeds 40 percent of their value before the damage, Farm-City may elect to terminate the Lease as of the date of the damage or destruction by notice given to EOTEC in writing not later than 45 days following the date of damage. In such event, all rights and obligations of the parties shall cease as of the date of termination and Farm-City shall be entitled to the reimbursement of any prepaid amounts paid by Farm-City and attributable to the anticipated term. If Farm-City does not elect to terminate, EOTEC shall proceed to restore the Premises and Farm-City shall proceed to restore the improvements to substantially the same form as prior to the damage or destruction. Work shall be commenced as soon as reasonably possible and thereafter shall proceed without interruption except for work stoppages on account of labor disputes and matters not under control of the rebuilding party.


remaining Premises reasonably unsuitable for Farm-City’s use, the Lease will terminate as of the earlier of the date that title or possession is taken by the condemning authority. EOTEC will be entitled to all of the proceeds of condemnation, except that Farm-City shall be entitled to all proceeds arising out of Farm-City’s leasehold interest and improvements, and Farm-City will have no claim against EOTEC as a result of the condemnation.


lease them, and that Farm-City will be entitled to quiet enjoyment of them during the term of the Lease. Farm-City shall not interfere with the quiet enjoyment by EOTEC of EOTEC’s other real property, nor with the quiet enjoyment of any of EOTEC’s other tenants or invitees.

Section 12. Assignment and Sublease Farm-City may sublease any part of the Premises without the prior consent of EOTEC

but with notification. Farm-City may not assign this Lease, in whole or in part.


Section 13. Default; Remedies 13.1 Default. The following will be events of default: (1) Failure by Farm-City to pay

any rent or other amount required to be paid by Farm-City to EOTEC under this Lease within 10 days after the giving of written notice of such nonpayment by EOTEC to Farm-City; (2) Failure by Farm-City to secure or maintain any insurance or provide evidence of insurance as required by this Lease and the continuation of such failure for more than 10 days after notice by EOTEC; (3) Farm-City abandons the Property which means a failure to use or occupy the Property for one or more of the purposes permitted under this Lease for a total of six (6) months or more during the lease term; or (4) Failure of Farm-City to comply with any term or condition or fulfill any obligation of this Lease within 30 days after written notice by EOTEC specifying the nature of the default with reasonable particularity. If the default is of such a nature that it cannot be completely remedied within the 30-day period, this provision will be complied with if Farm-City begins correction of the default within the 30-day period and thereafter proceeds with reasonable diligence and in good faith to affect the remedy.

13.2 Remedies on Default. If Farm-City defaults, this Lease may be terminated at the option of EOTEC by written notice to Farm-City. Whether or not this Lease is terminated by the election of EOTEC or otherwise, EOTEC will be entitled to recover damages from Farm-City for the default, and EOTEC may reenter, take possession of the Premises, and remove any persons or property by legal action or by self-help with the use of reasonable force and without liability for damages and without having accepted a surrender. Following reentry, EOTEC will use reasonable efforts to relet the Premises. The foregoing remedies will be in addition to and will not exclude any other remedy available to EOTEC under applicable law.


Lease, including acceptance by EOTEC of late payment of rent, will not waive or prejudice the party’s right to require strict performance of the same provision in the future or of any other provisions.

14.2 Attorney Fees and Costs. If suit or action is instituted in connection with any controversy arising out of this Lease, each party will pay its own attorney fees and costs.

14.3 Notices. Any notice permitted or required hereunder shall be in writing and shall be deemed given on the date deposited in the U.S. mail as certified or registered mail, postage prepaid and addressed to the parties at their addresses shown above. Such addresses may be changed by either party, by ten days' written notice to the other party.


14.5 No Appurtenances. This Lease does not create any rights to light and air, any rights, any view rights, or any other rights, easements or licenses, by implication or otherwise, except as expressly set forth in this Lease or its exhibits. This Lease is an unsubordinated lease covering the Property, and any financing by Farm-City will encumber only Farm-City's leasehold interest. EOTEC will not subordinate the fee title or EOTEC's interest to any


mortgage or other lien securing any financing by Farm-City. Farm-City will have access to parking facilities during events.




The parties have executed this Lease effective as of the date first written above.

EOTEC:


FARM-CITY:


1 – Lease – EOTEC to Farm-City Pro Rodeo – Rodeo Arena

LEASE Rodeo Arena

Effective Date: , 2017

Between: Eastern Oregon Trade and Events Center Authority, pursuant to an Intergovernmental Agreement between Umatilla County and the City of Hermiston, Oregon

Hermiston, Oregon 97838 (“EOTEC”)

And: Farm-City Pro Rodeo Company, an Oregon Non-Profit Corporation 495 E. Main Hermiston, Oregon 97838 (“Farm-City”)

Recitals:

A. EOTEC owns certain real property in Hermiston, Umatilla County, Oregon, described at Exhibit A. Upon said real property is, or will be constructed, a rodeo arena and related improvements (the “Premises”). The Premises are that real property and improvements depicted at Exhibit B, together with that 20-acre unimproved parcel situated immediately east of the area depicted at Exhibit B, but excluding that area measuring 410’ by 120’ (known as the “Mercantile Area”) leased separately by EOTEC to Farm-City under the terms of a separate agreement.

B. Farm-City desires to use the Premises for purposes of holding an annual rodeo and EOTEC desires that Farm-City have the use of the Premises for the same. Therefore, EOTEC hereby leases the Premises to Farm-City on the terms and conditions stated below.

Agreement:

Section 1. Occupancy 1.1 Term. Term. The term of this Lease shall be for the following periods:

1.1.1 Fair Week. Farm-City shall have exclusive use and occupation of the Premises Sunday through Saturday of that week in August in which the Umatilla County Fair takes place (“Fair Week”), for a period of fifty (50) years beginning with the effective date and ending after the fiftieth Fair Week after the Effective Date.

1.1.2 Additional Work Periods. With the prior consent of EOTEC, which shall not be unreasonably withheld, Farm-City shall have the right, during said fifty-year term, in addition to Fair Week, to enter upon the Premises to make inspections, repairs and improvements.

1.2 Purpose of Occupancy. With the prior consent of EOTEC, which shall not be unreasonably withheld, Farm-City’s tenancy shall be for the purpose of holding an annual rodeo and attendant activities, including, but not limited to, hospitality or other “VIP” events, a beer garden, dances, concerts, concessions, parking, and livestock stabling. In particular, with respect to the 20-acre unimproved parcel, Farm-City shall have the use of that parcel for contestant or


public parking, for stabling horses or other livestock, or for any other uses related to a rodeo or the other uses permitted to Farm-City hereunder. Farm-City will have access to parking facilities during events.

1.2.1 Concessions. Regardless of whether EOTEC or the Umatilla County Fair have entered into agreements with any food, beverage or other concessions supplier, Farm-City shall have absolutely no limitations on its ability to contract with any concessions supplier for any concessions products. By way of example, if Coors is the exclusive provider of alcoholic beverages for the Umatilla County Fair in a given year, Farm-City shall not be obligated to serve Coors products but may instead serve Budweiser products or another brand. By way of further example, if the Umatilla County Fair contracts with a particular concessions supplier for food products, Farm-City shall not be obligated to contract with that supplier.

1.3 Other Proposed Rodeo Events. If EOTEC wishes to lease the Premises to any third party for any event during the period that is ninety days prior to the start of and thirty days after the end of Fair Week, EOTEC will first obtain Farm-City’s prior written consent, which consent shall not be unreasonably withheld by Farm-City.

Section 2. Rents, Utilities, and Other Charges 2.1 Basic Rent. Farm-City shall pay to EOTEC as rent the sum of TEN

THOUSAND DOLLARS ($10,000.00) per calendar year (or partial calendar year), payable no later than September 15th of each year, at EOTEC’s address.

2.1.1 Rent Credit. Farm-City shall receive credit towards their basic rent based on improvements and work performed on the Premises. After all improvements are completed Farm-City and EOTEC will agree on the amount of contribution that will be allocated as rent credit.

2.1.2 Ticket Sales, Revenues. Farm-City shall keep all ticket sales, concessions revenues, merchandise sales, vendor fees, parking or stabling fees, or other revenue generated by Farm-City from the use of the Premises under this Lease and EOTEC shall have no share of the same.

2.2 Utilities and Taxes. Farm-City will pay the costs of all utilities, including electricity, natural gas, water, sewage, and all real property taxes assessed by Umatilla County against the Premises, during Fair Week.

Section 3. Improvements 3.1 Construction of Improvements. EOTEC shall construct the improvements

portion of the Premises (as the Premises are defined at Recital A, above) as depicted at Exhibit B with the limitations of available funding. I f a t a l l p o s s i b l e construction shall be completed on or before July 30, 2017. Ownership of all improvements shall remain with EOTEC, unless the parties agree otherwise, in writing.

3.2 Improvements Constructed on Unimproved Parcel. During the term of this Lease, EOTEC will not construct any improvements or make any changes to the 20-acre unimproved parcel situated immediately to the east of Exhibit B, which parcel may be used by Farm-City for those purposes set forth at section 1.2 without consultation with Farm-City. Consultation is not to be interpreted as requiring approval.

3.3 Arena Name. During the term of this Lease, EOTEC shall name the Premises the “Farm-City Pro Rodeo Arena.” This name could be amended with written consent of Farm-City. Any naming revenue from a change would come to EOTEC.

3.4 Alterations. Farm-City shall not make or permit any addition or alteration,


structural or otherwise, to be made on the Premises without the prior discussion, agreement and written consent of EOTEC. Even if EOTEC consents to any such alteration, EOTEC shall not have any duty to reimburse Farm-City for the cost of any alterations made to the Premises by Farm-City, unless EOTEC and Farm-City otherwise agree, in writing. Any alteration shall belong to EOTEC unless the parties otherwise agree, in writing.

3.5 Lien-Free Construction. Farm-City will pay as due all claims for work done on the Premises and for services rendered or material furnished to the Premises, and will keep the Premises free from any liens caused by Farm-City’s failure to meet Farm-City’s obligations.

3.6 Personal Property Any personal property brought onto the Premises by Farm-City shall remain the property of Farm-City unless otherwise agreed by the parties in writing. Farm-City shall allow EOTEC the use of Farm-City’s personal property (including, but not limited to, Farm-City’s existing Priefert bucking and roping chutes, gates, and panels) to facilitate the hosting of other events on the premises. Upon or at any time prior to termination of this Lease, Farm-City shall remove Farm-City’s personal property (including, but not limited to, Farm-City’s existing Priefert bucking and roping chutes, gates, and panels) from the Premises. Any personal property not removed within ninety (90) days after termination of this Lease shall belong to EOTEC.

Section 4. Repairs and Maintenance 4.1 EOTEC’s Responsibilities. EOTEC will be responsible for all maintenance and

repairs related to the Premises and Farm-City’s personal property thereon, except as otherwise specified at section 4.2, below. EOTEC’s duties under this section shall include, but not be limited to, keeping fences and gates in good repair, keeping the Premises free of litter, mowing and watering grass areas, and maintaining the sound system and lighting in good working order.

4.2 Farm City’ Responsibilities. Farm-City shall repair at its own expense any damage caused by Farm-City, its attendees, or any individual working under the direction of Farm- City, to the Premises or to Farm-City’s personal property thereon.

4.3 EOTEC’s Right of Access. EOTEC will have the reasonable right to enter the Premises to make necessary inspections, make necessary or agreed repairs or carry out maintenance activities, supply necessary or agreed services, or otherwise to carry out EOTEC’s obligations under this Lease. Farm-City will not unreasonably withhold consent for EOTEC or EOTEC’s authorized agents to enter upon the Premises for purposes set forth in this section.



Section 6. Insurance 6.1 Farm-City. During the term of this Lease, Farm-City shall maintain public liability

and property damage insurance with limits of not less than $1,000,000.00 for injury to persons and property. EOTEC shall be named as an additional insured. Such insurance shall cover all risks arising directly or indirectly out of Farm-City's activities in or on the Premises but only during those time periods as set out in sections 1.1.1 and 1.1.2; shall protect Farm-City against the claims


of EOTEC on account of obligations assumed by Farm-City under section 7.1; and shall protect EOTEC and Farm-City against claims of third persons. Such policies shall be written in such form with such terms and such insurance companies reasonably acceptable to EOTEC. Farm-City shall deliver to EOTEC certificates of coverage from each insurer containing a stipulation that coverage will not be canceled or diminished without a minimum of ten days written notice to EOTEC. Proof of insurance shall be provided to EOTEC annually or by EOTEC’s other reasonable demand. Failure to provide proof of insurance will constitute grounds for termination of the Lease by EOTEC.

6.2 EOTEC. During the term of the Lease, EOTEC shall maintain public liability and property damage insurance with limits of not less than $1,000,000.00 for injury to persons and property. Such insurance shall cover all risks arising directly or indirectly out of EOTEC’s activities in or on the Premises; shall protect EOTEC against the claims of Farm-City on account of obligations assumed by EOTEC under section 7.2, and shall protect EOTEC and Farm-City against claims of third persons. Such policies shall be written in such form, with such terms and such insurance companies reasonably acceptable to Farm-City. EOTEC shall deliver to Farm-City certificates of coverage from each insurer containing a stipulation that coverage will not be canceled or diminished without a minimum of ten days written notice to Farm-City. Proof of insurance shall be provided to Farm-City annually or by Farm-City’s other reasonable demand. Failure to provide proof of insurance will constitute grounds for termination of the Lease by Farm- City.

Section 7. Indemnity 7.1 Farm-City. Farm-City shall forever defend, indemnify and hold EOTEC harmless

from any claim, loss or liability arising out of or in any way connected with Farm-City's possession or use of the Premises or Farm-City's conduct with respect to the Premises. In the event of any litigation or proceeding brought against EOTEC and arising out of or in any way connected with any of the above events, or claims, against which Farm-City agrees to defend EOTEC, Farm-City shall upon agreement by the EOTEC vigorously resist and defend such actions or proceedings through legal counsel.

7.2 EOTEC. To extent allowed and limited by the Oregon Constitution and the Oregon Tort Claims Act, EOTEC shall forever defend, indemnify and hold Farm-City harmless from any claim, loss or liability arising out of or in any way connected with EOTEC’s possession or use of the Premises or EOTEC’s conduct with respect to the Premises. In the event of any litigation or proceeding brought against Farm-City and arising out of or in any way connected with any of the above events, or claims, against which EOTEC agrees to defend Farm-City, EOTEC shall upon agreement by Farm-City vigorously resist and defend such actions or proceedings through legal counsel.

Section 8. Destruction. If the Premises are destroyed or damaged such that the cost of repair exceeds 40 percent of

their value before the damage, either party may elect to terminate the Lease as of the date of the damage or destruction by notice given to the other in writing not later than 45 days following the date of damage. In such event, all rights and obligations of the parties shall cease as of the date of termination and Farm-City shall be entitled to the reimbursement of any prepaid amounts paid by Farm-City and attributable to the anticipated term. If neither party elects to terminate, EOTEC shall proceed to restore the Premises to substantially the same form as prior to the damage or destruction. Work shall be commenced as soon as reasonably possible and thereafter shall proceed


without interruption except for work stoppages on account of labor disputes and matters not under EOTEC’s control.


remaining Premises reasonably unsuitable for Farm-City’s use, the Lease will terminate as of the earlier of the date that title or possession is taken by the condemning authority. EOTEC will be entitled to all of the proceeds of condemnation, except that Farm-City shall be entitled to all proceeds arising out of Farm-City’s leasehold interest, and Farm-City will have no claim against EOTEC as a result of the condemnation.


lease them, and that Farm-City will be entitled to quiet enjoyment of them during the term of the Lease. Farm-City shall not interfere with the quiet enjoyment by EOTEC of EOTEC’s other real property or of these premises outside the timeframe of this lease, nor with the quiet enjoyment of any of EOTEC’s other tenants or invitees.

Section 11. Assignment and Sublease Farm-City may sublease any part of the Premises without the prior consent of EOTEC.

Farm-City may not assign this Lease, in whole or in part.

Section 12. Default; Remedies 12.1 Default. The following will be events of default: (1) Failure by Farm-City to

pay any rent or other amount required to be paid by Farm-City to EOTEC under this Lease within 10 days after the giving of written notice of such nonpayment by EOTEC to Farm-City; (2) Failure by Farm-City to secure or maintain any insurance or provide evidence of insurance as required by this Lease and the continuation of such failure for more than 10 days after notice by EOTEC; or (3) Failure of Farm-City to comply with any term or condition or fulfill any obligation of this Lease within 30 days after written notice by EOTEC specifying the nature of the default with reasonable particularity. If the default is of such a nature that it cannot be completely remedied within the 30-day period, this provision will be complied with if Farm-City begins correction of the default within the 30-day period and thereafter proceeds with reasonable diligence and in good faith to affect the remedy.

12.2 Remedies on Default. If Farm-City defaults, this Lease may be terminated at the option of EOTEC by written notice to Farm-City. Whether or not this Lease is terminated by the election of EOTEC or otherwise, EOTEC will be entitled to recover damages from Farm-City for the default, and EOTEC may reenter, take possession of the Premises, and remove any persons or property by legal action or by self-help with the use of reasonable force and without liability for damages and without having accepted a surrender. Following reentry, EOTEC will use reasonable efforts to relet the Premises. The foregoing remedies will be in addition to and will not exclude any other remedy available to EOTEC under applicable law.


Lease, including acceptance by EOTEC of late payment of rent, will not waive or prejudice the party’s right to require strict performance of the same provision in the future or of any other


provisions. 13.2 Attorney Fees and Costs. If suit or action is instituted in connection with any

controversy arising out of this Lease, each party will pay its own attorney fees and costs. 13.3 Notices. Any notice permitted or required hereunder shall be in writing and shall

be deemed given on the date deposited in the U.S. mail as certified or registered mail, postage prepaid and addressed to the parties at their addresses shown above. Such addresses may be changed by either party, by ten days' written notice to the other party.





The parties have executed this Lease effective as of the date first written above.

EOTEC:


Farm-City:


Umatilla County:

By: _____________________________ Print Name: Its: Dated: , 2017

City of Hermiston:

By: _____________________________ Print Name: Its: Dated: , 2017

Subject Harkenrider Center - Notice to Award a construction contract to G2 Construction.

Background Council has taken a series of actions to support the acquisition and development of the Harkenrider Center which will includes the Hermiston Senior Center program as the primary use. These actions have included:

Action Approval Date Resolution No. 1952 – Agreement between City and Senior Board Feb. 24, 2014 Resolution No. 1972 - Accepting a $2M grant from CDBG Jan. 7, 2015 Resolution No. 1980 - Adopting the Aspen Site for the center April 27, 2015 Resolution No. 1981 – Naming the facility Harkenrider Center April 27, 2015 Resolution No. 1994 – Fair Housing Resolution July 27, 2015 Resolution No. 1995 – Ascent Architecture Selection Aug. 24, 2015 Resolution No. 2012 – Adopting the Ridgeway Site Dec. 28, 2015 Motion to add a basement and enhanced parking May 9, 2016 Conditional Use Permit June 8, 2016 Resolution No. 2035 – HSD Lease for Harkenrider Center Aug. 22, 2016

The building design includes 11,000sf on a main floor and basement (Attachments A-C). The City released the plans for bid on January 23, 2017 and held a mandatory pre-bid meeting on February 7, 2017. On the Bid Opening deadline of March 7, the City received three bids identified in the Bid Tabulation (Attachment D). The lowest qualified bid is G2 Construction of Kennewick, Washington. Their base bid is $2,198,000 with the alternate for the elevator at $80,725 for a total of $2,278,725. There were four other contingencies in the bid documents.

The total available construction funding for the Harkenrider Center is $2,367,162 excluding $250,000 set aside for parking improvements after completion of the building. This leaves $88,437 of available funding for construction contingencies.

Staff Report For the Meeting of March 20, 2017


Agenda Item : Motion

Approve the Notice to Award a construction contract for the Harkenrider Center.

Summary Approval of the Notice to Award will commence a seven day protest period for other bidders (Attachment E). In the absence of a protest, the City will enter into a contract with G2 Construction at the first opportunity. A pre-construction meeting is scheduled for April 11 to review the construction schedule another reporting requirement for the contractor.

Alternatives Following are alternatives related to Award of Bid:

1. Approve the Notice of Award with G2 in the amount of $2,278,725 including theadd alternate for the elevator.

2. Approve the Notice of Award with G2 and add additional work alternatives..3. Reject all Bids.

Recommendation Motion to approve the Notice to Award a construction contract for the Harkenrider Center to G2 Construction in the amount of $2,278,725.

Reviewed by:

Department Head:

City Manager Approval:

Atta

chm

ent A

Atta

chm

ent B

Atta

chm

ent C

Subject Request for a Cinco de Mayo beer garden in Butte Park on May 6 & 7.

Background The Cinco de Mayo Committee has outgrown the location of the annual Cinco de Mayo event where it has been located for the last three years. The Committee desires to relocate the event to Butte Park which will accommodate the larger crowds and future growth. A parade is planned for Saturday at 1:00pm from Elm to 7th Street which will require support from local law enforcement and approval of ODOT. Also planned for the event is a 5 minute fireworks display Saturday at 8pm which requires a permit from the State.

On occasion, the Cinco de Mayo event downtown has included a Beer Garden operated by a private vendor with a certification of approval from OLCC. The Committee requests that this year’s event at Butte include a Beer Garden, however the Committee is not fully agreed on this decision. Because Alcohol consumption is restricted in City Parks, this request requires Council approval. The one exception to this rule is McKenzie Park, where alcohol consumption is allowed with an OLCC special use permit.

Alternatives Following are alternatives related to a Cinco de Mayo Beer Garden:

1. Approve the Beer Garden as proposed.2. Approve of the Beer Garden with conditions.3. Reject the proposal for a Beer Garden.

Reviewed by:

Department Head:

City Manager Approval:

Staff Report For the Meeting of March 20, 2017


Agenda Item : Motion

Consider a request for a Cinco de Mayo beer garden in Butte Park

Documents

HERMISTON CITY COUNCILhermiston.or.us/sites/hermiston.or.us/files/File/city-council... · scheduled meeting time if you need an accommodation. ... HERMISTON CITY COUNCIL ... Consider