Item 2G: Ratification of Unanimous IGR Actions

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Ms. Taylor wanted to support the bill at a level of Priority 3. Ms. Holmes said staff chose a neutral position because the City had not seen such a scenario at the local government level and there had been no problem. If there was no problem, she suggested it made more sense to monitor the legislation. In addition, Ms. Holmes pointed out, when such strikes occurred they were generally of short duration. Unlike the private sector, the public sector does not have issues surrounding replacement workers. She added that there were considerable parameters governing and protecting union workers striking lawfully. The City’s position was to value its relationships with labor and work to avoid strikes. Ms. Holmes noted the bill had been referred to a committee and it would be prudent to monitor it. Ms. Taylor thought the principal behind the bill was worthy and asked what harm it would do the City to support the bill at a level of Priority 3. Ms. Wilson pointed out that assigning that priority to the bill would require we expend energy to lobby the bill. She added that the League of Oregon Cities had taken a neutral position on the bill because it involved the Oregon School Boards Association, and the league was deferring to the association. The committee made no change to the staff recommendation of Priority 3, Neutral. HB 2076 Ms. Wilson said the bill would create an assessment on patient care, items, and services provided by specific categories of health care providers. Staff recommended a position of Priority 2, Oppose. Mr. Potter and Mr. Hill were present to discuss the bill. Ms. Wilson noted that Myrnie Daut of Human Resources and Risk Services also recommended opposition to the bill. Mayor Piercy asked what position Representative Phil Barnhart had on the bill. Ms. Wilson did not know if he had a position, but noted that the bill was not scheduled for a hearing. Ms. Taylor said if the bill imposed an assessment on hospitals only she wanted to support it. She noted that California had passed such a bill. Ms. Wilson indicated another bill had been introduced that accomplished that goal. The committee made no change to the staff recommendation of Priority 2, Oppose. HB 2429 Ms. Wilson said the bill modified the property tax exemption for business firms eligible to participate in such programs. Staff recommended a position of Priority 2, Oppose. She noted the bill had already had a hearing. Ms. Taylor wanted to support the bill at level of Priority 3. Mr. Hill said that staff recommended opposition to the City due to the expense it imposed on the City. It would serve to increase costs to companies that invested in an enterprise zone, essentially negating the benefit of the zone. It extended the prevailing wage law to private investment whereas currently that was limited to public investment. Mr. Braud added that the average tax exemption in the enterprise zone was about three percent of the project cost, which had the potential to erode all benefits of the zone. Another related issue was that of the unknown liability to the City in regard to claims against private companies that failed to pay the prevailing wage. Ms. Wilson added that those against the bill included the presidents of business and business recruiters. Those testifying stated that they did not believe that Sony would have located in Oregon had such a law been in place. The Association of Builders and Contractors supported the concept behind the MINUTES—Council Committee on Intergovernmental Relations February 18, 2009 Page 3