By Anne Scheck

UPDATES
Bond Rating Improves. In a recent round of bond refinancing, Standard & Poor – an international credit-rating agency – increased the city’s bond grade from an “A-” to an “A,” putting it higher in the mid-level range. It’s a significant change, said Gloria Butsch, the city’s finance director, who made the announcement at the council meeting in mid-July. “I’m excited to see a little bit of an upgrade,” she said. 

This not only reflects an uptick in credit-worthy status, but the improved rating translates into better terms for the city when money is borrowed, she explained. The Standard & Poor report, which reviewed the most recent budget and audit, attributed the change to the way revenue and expenditures now are being managed by the city. However, the report also included areas in which the city needs to improve. [More details on the city budget and how it is being addressed will be in the August issue of The Independent.]

Homeless Issue Strategy. In an effort to increase effectiveness at battling homelessness in Salem and surrounding areas, Polk and Marion counties have exited a homeless advocacy group that previously involved 28 counties. Independence is now part of a new two-county organization – the result of a unanimous vote at the last city council meeting. The action made the city part of the Mid-Willamette Valley Homeless Alliance (MWVHA). Councilor Shannon Corr was appointed the city’s representative to the MWVHA board. [A more in-depth look on the program can be found in the Polk County Itemizer-Observer at this link: https://www.polkio.com/free_news/program-to-help-homeless-to-open-in-polk-marion-counties/article_26c356f4-cb9a-11ea-b075-c788a2476033.html]

MEETING PREVIEW: Tomorrow night, Tuesday July 28, at the City Council meeting ... a state grant to MINET of $270,000 is expected to be announced, with the aim of expanding wi-fi in the area ... also, councilors are being asked to vote on $2.5 million for construction costs of a pump station, a new capital project for the sewer-water system. The meeting is at 6:30 pm in the Independence Civic Center on Main St. 
 
Due to COVID-19 restrictions, visitors are restricted to the foyer of the reception area, where the meeting can be viewed on a wall-mounted screen. Some public officials still meet in council chambers, where public testimony is taken. A live-stream of the city council meeting can be seen on the city's Facebook page: https://www.facebook.com/IndependenceOregon/
 
FINAL NOTE: At their recent session, state legislators extended the rental moratorium, including for commercial space, until the end of September – preventing evictions for non-paying tenants until after that time. Lenders also are barred from initiating foreclosures against homeowners through Sept. 30. However, in August, the City of Independence plans to drop its waiver for delinquent utility payments and begin disconnections. “We’ll work on assisting the customer with payment plans,” said Tom Pessemier, city manager.

By Anne Scheck

CITY+HOTEL EVENT CENTER CONTRACT
A city contract for managing meeting space that spans the lower floor of the Civic Center was approved Tuesday night for operators of The Independence Hotel – but monetary performance measures aren't part of the terms.  
 
The contract, which the Independence City Council passed unanimously, turns over the city’s event-center rooms for use by the Embarcadero Hospitality Group. The city has agreed to receive $5,000 from “net revenue” collected by the management group annually, which is to be used for maintenance and refurbishment if needed. However, when questioned about how net revenue will be determined – given that gross expenses aren’t defined – City Manager Tom Pessemier said the intent is to collect $5,000 annually.
   
The terms of the contract are seen as “favorable” for the hotel operators by an informed community member who was asked to review it. For example, the language doesn’t specify a minimum number of bookings and doesn’t establish a periodic review process. “We have agreed to review the agreement as necessary. We have not specified a timeline,” Mr. Pessemier responded. “It could be two months or two years. When we find a need to make modifications we will do so,” he stated.
 
The city can continue to use the event center for its own meetings, but reservations for it – and by the hotel – are on a “first come, first serve” basis, according to the explanation given to the city council. 
 
This past fall, the city issued a request-for-proposals solicitation, asking for a vendor to market and manage the event center. The Embarcadero Hospitality Group, which is based in Oregon, submitted the only proposal received.

POLK COUNTY HOLDS OFF ON STATE MONEY
The Polk County Board of Commissioners was advised that a contract sent by the state for COVID-relief money contains questionable language, and two commissioners rejected the document Wednesday – even though about $900,000 in funding is at stake. 
 
Though no formal vote was taken, Commissioners Craig Pope and Lyle Mordhorst expressed dissatisfaction with the current contract, after County Attorney Morgan Smith told them “many of the terms make no sense.” Commission Chair Mike Ainsworth was absent from the meeting.
 
After explaining that he felt compelled “to tell you this is like having a round peg for a square hole,” Mr. Smith said the contract includes terms that seem inapplicable to the county. 
 
The money, which is from the CARES package that was passed by the US Congress, was sent to the state weeks ago. However, some county administrators have refused to sign the contract without modification – delaying the disbursement to their counties. Polk County is one of them. 
 
Commissioner Mordhorst noted that Polk County already had been approved to receive the money. “Initially, this was done with no strings attached,” he said. “Yet, here we are talking about being held hostage,” said Commissioner Pope. “We are trying to do the right thing,” he added. 
 
Mr. Smith explained that he thinks the complication may have been created by a mistaken template – one that doesn’t seem to match the situation it is supposed to help solve. For example, the first document the county received included references to the Department of Education, he said.
 
The contract is expected to be discussed again next week; Efforts by the Linking Letter will be made to contact the governor’s office for a comment. 

FINAL NOTE: Mid-Willamette Valley Homeless Alliance (MWVHA)
Formed last year to address the growing problem of housing needs and homelessness, the MWVHA is moving from planning stages to full launch in August. Independence City Councilor Shannon Corr officially was appointed to its board Tuesday night at the Independence City Council meeting. Ms. Corr said she hopes to help identify housing for a wide range of homeless individuals, including veterans and women with children. Trammart News will take a more in-depth look at this issue in a coming Independent. -end-