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AGENDA ITEM NO:  4
Meeting Date: 8-29-05
Department: Mayor/Council

ITEM TITLE:  Government to Government Agreement between the City of Florence and the Confederated Tribes of the Coos, Lower Umpqua and Siuslaw Indians

DISCUSSION:  On August 1, 2005, the City Council authorized Councilor Xavier and Mayor Brubaker, with staff support from City manager Bennett, to enter into discussions with representatives of the Confederated Tribes of the Coos, Lower Umpqua and Siuslaw Indians to determine if a satisfactory government-to-government agreement could be negotiated for the provision of sewer services to the Tribe's future developments on their lands known as the Hatch Tract and adjacent properties owned by the Tribes.  Such an agreement would require separate approvals by both the City and the Tribes.

The action at that time envisioned bringing the proposed agreement back to the City Council for its review and possible decision to place the matter before the voters of the City in a special election  to be held November 8, 2005.  If approved by the voters in that election, the City would process an amendment to the City's comprehensive Plan to permit extension of sewer service outside its Urban Growth Boundary, and the Tribes would proceed with planning leading to the next phase of development on the Hatch Tract, entailing a 50,000 to 60,000 square foot casino building and an adjacent 100-room hotel, with construction completed in accordance with the Tribes' schedule of opening the new facilities in Spring, 2007.  If rejected by the voters, the Tribes would thereby be informed that the City would not be taking steps to provide sewer service to the Hatch Tract, and it could then proceed with plans for developing its own sewer treatment facility on site in a timely manner according to its schedule.

The results of those negotiations are presented tonight, including this report, a Memorandum of Understanding containing agreements reached by the negotiating body which would be placed before the City voters, and a draft ballot narrative  for the November 8th Special Election.  By oral addendum to this report, an announcement will be made tonight as to whether or not the Tribal Council has approved this proposed agreement at its meeting held earlier today, August 29th.

The proposed government-to-government agreement presented tonight includes the following provisions:

1.  The City will diligently pursue an amendment to its Comprehensive Plan allowing the extension of its sewer services to the Hatch Tract, which is presently outside its Urban Growth Boundary.  The Tribes will decide by its sole determination on September 1, 2006 whether or not such an amendment can be completed by the City by November 15, 2006.  If its determination is negative, this agreement will be terminated.

2.  After the Comprehensive Plan amendment is completed by November 15, 2006, the Tribes will pay to the City, in advance of construction, sewer system development charges at the same rates paid by private developers for such services, both for the next phase of development summarized above, and all subsequent development phases in the future.  The Tribes will pay all construction costs associated with the extension of sewer service by the City, and will also pay sewer use fees when operations begin, based on the metered flow of water generated on site by the Tribes using its own well-water facilities.

3.  The City will not provide water to the Hatch Tract for the next phase of development, but, while not part of this agreement, it is envisioned that water service for future phases may be developed jointly for the mutual benefit of both the City and the Tribes.

4.  After operations begin, the Tribes will make to the City annual cooperative marketing payments of a minimum of $54,000 per year, the use of such funds to be determined jointly by a City representative, a Tribal representative, and a third person to be chosen by the City and Tribal representatives.

5.  In the first year of operations, the Tribes will make a cooperative governmental services payment to the City of $100,000 and adjusted by the consumer price index (U.S. all cities), but never less than 2% per year nor more than 4% per year.

6.  The Tribes agree to a waiver of sovereign immunity limited to matters covered by this agreement, so that disputes may be arbitrated in a process set forth in the Memorandum of Understanding.  Further, the Tribes have agreed to post bonds covering its annual payment obligation sin the future, and to other measures providing fiscal surety agreed by the parties, such as assignment of proceeds or lender recourse.

FISCAL IMPACT:  (blank)

ALTERNATIVES:  Decline to put this proposed agreement to a vote of the people, with the expectation that the Tribes will proceed with all future Hatch Tract development on its own, including sewer treatment services, making it unlikely that the Tribes would be inclined to enter into any governmental services agreement with the City of Florence in the future.

RECOMMENDATION:  Adopt Resolution No. 26, Series 2005 a resolution to put this proposed agreement to a vote of the City of Florence electors at a Special Election scheduled for November 8, 2005.