ORDINANCE No. 180695

*Increase contract with Palmer, Groth & Pietka Valuation, Inc. in the amount of $45,000 for Measure 37 analysis (Ordinance; amend Contract No. 35966)

The City of Portland ordains:

Section 1.  The Council finds:

1.  The City entered into Contract No. 35966 with Palmer, Groth & Pietka Valuation, Inc. (PGP Valuation) on June 14, 2005, for an amount not to exceed $30,000, to provide research and financial analysis related to claims filed pursuant to Ballot Measure 37.

2.  The original contract authorized the City to negotiate services with PGP Valuation, Inc. to provide property title research and analysis, economic research and analysis, public policy research and analysis, and public testimony as necessary to determine the validity and value of claims.

3.  Since Measure 37 became effective on December 2, 2004, through November 1, 2006, the City received 30 claims requesting $16,203,425 in compensation, of which six are still active, six are on hold, six were withdrawn, two were granted, and ten were denied.

4.  Since June 14, 2005, the Bureau of Planning (Planning) has engaged the services of PGP Valuation for research and financial analysis related to five claims at a total cost of $20,600.

5.  ORS 197.352(5) establishes that 1) claims arising from land use regulations enacted prior to December 2, 2004, shall be made within two years of December 2, 2004, or the date the public entity applies the land use regulation as an approval criteria to an application submitted by the owner of the property, whichever is later; and 2) claims arising from land use regulations enacted after December 2, 2004, shall be made within two years of the enactment of the land use regulation, or the date the owner of the property submits a land use application in which the land use regulation is an approval criteria, whichever is later.

6.  Because of the higher standard of approval required after the statutory deadline on December 2, 2004, the City of Portland anticipated a surge in number of claims before the deadline and complexity of claims after the deadline. As of November 1, 2006, the City of Portland has received 61 claims requesting $243,491,510 in compensation, amounting to 91 total claims to date requesting total compensation of $259,694,935.

7.  During Council hearings regarding Measure 37 claims, City Council has confirmed their commitment to thoroughly investigate merits of claims in order to protect the public’s interest in upholding current land use regulations, to conserve public funds by denying invalid claims, and to waive rules when appropriate.

8.  Because of the number of claims, the statutory requirement to respond within 180 days, and the need for experienced professional services to provide analysis, it is necessary to amend the contract with the current consultant to allocate currently available funds.

9.  A not-to-exceed sum of $45,000 for additional services is considered reasonable and proper compensation to cover necessary research and analysis, bringing the total contract amount to $75,000.

10.  Funding for this amended contract is available in the Bureau’s FY 2006-2007 Revised Budget.

NOW, THERFORE, the council directs:

a.  The Mayor and Auditor are authorized to execute Amendment No. 1 to Contract No. 35966 with PGP Valuation, Inc., in a form substantially in accordance with the amendment attached as Exhibit A.

b.  The Mayor and Auditor are hereby authorized to draw and deliver checks chargeable to the General Fund when demand is presented and approved by the proper authority.

Section 2. The Council declares that an emergency exists because amendment of the contract will enable prompt work in support of the City’s ability to analyze Measure 37 claims; therefore, this Ordinance shall be in force and effect from and after its passage by the Council.

BACKING SHEET INFORMATION

AGENDA NO. 5-2007

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 180695