ORDINANCE No. 178144

*Authorize agreements with McCormick Pier LLC and McCormick Pier Condominium Association to resolve maintenance liability for Willamette River Greenway Trail segment. (Ordinance)

The City of Portland ordains:

Section 1.  The Council finds:

1.  McCormick Pier LLC owns the property commonly known as the McCormick Pier Apartments, located at 600 NW Naito Parkway, in the City of Portland.

2.  Norcrest China Company, McCormick Pier LLC’s predecessor in interest and the City of Portland entered into an Easement Agreement dated January 20, 1982, for the construction, maintenance and public use of a recreational trail easement over a portion of the McCormick Pier Apartments property.

3.  There was a disagreement between McCormick Pier LLC and the City as to the extent of each party’s rights and responsibilities under that Easement Agreement.

4.  McCormick Pier Condominium Association is an Oregon non-profit corporation constituting the unit owners’ association for the condominium at the property located at 600 NW Naito Parkway, and, as such, controls the common elements of the property.

5.  The parties desire to resolve the dispute over the extent of the easement and the maintenance responsibilities, by having the City execute a promissory note for $300,000, to cover the City’s share of deferred maintenance, payable in 10 annual installments of $30,000 plus accrued interest at 5% per annum, by having the City and McCormick Pier Condominium Association execute a new Easement Agreement, which will more clearly define the Easement Area, and under which McCormick Pier Condominium Association will retain the obligation to maintain the Easement Area, and by having the City and McCormick Pier LLC execute a mutual release of claims relating to the condition of the Easement Area.

6.  Portland Parks & Recreation never received operating and maintenance (O&M) funding for the trail segment that is the subject of this agreement. By satisfying its maintenance obligation through these agreements and promissory note, the City is committing to annual payments averaging $38,250 per year but is avoiding potentially larger O&M costs in the future.

NOW, THEREFORE, the Council directs:

a.  The Commissioner of Public Utilities is authorized to execute on behalf of the City of Portland the Easement Agreement, the Release Agreement and the

Promissory Note, substantially in the forms attached to this Ordinance, once those agreements have been approved as to form by the City Attorney.

b.  The Council has been committed for many years to the practice of acknowledging and funding the O&M cost of new capital assets. Because the original O&M cost for this trail segment was not funded, the cost of satisfying the City’s maintenance obligation may be treated as a new responsibility in this case. In the 2004-05 budget process, Portland Parks & Recreation may request that the annual cost of this promissory note, which averages $38,250 per year, be considered for funding from the General Fund O&M set-aside.

Section 2. The Council declares that an emergency exists, because immediate repair of the Easement Area is necessary for the public safety, therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Commissioner Jim Francesconi

Harry Auerbach:ha

December 30, 2003

BACKING SHEET INFORMATION

AGENDA NO. 37-2004

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 178144