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The 2014 agreement would continue a practice of concurrent exemption periods applying to specific investment packages over time. A similar approach was taken when investment under the 2005 SIP began while the 1999 SIP was still in effect. The 2014 agreement allows separate investment packages to be identified and accounted for so long as no exemption period extended beyond the life of the agreement. Intel would gain greater flexibility when timing equipment replacement and the local governments would gain an extended period of certainty with respect to the methodology used to compute Intel's taxes and fees.

The 2014 SIP agreement requires Intel to make payments under two categories, those required by state law and those negotiated locally. The statutorily required payments would total to an estimated $122 million in property taxes and fees over the life of the agreement. Additional fees would total to an estimated $228 million over the same period. Actual amounts would vary depending on how much and over what timeline Intel invests.

The agreement is focused on investments in the company's unique cycle of equipment replacement and retaining the 17,500 employees working in Washington County at the time the 2014 agreement was adopted. The multi-million-dollar machinery and equipment used in Intel's manufacturing process can become obsolete within a few years as the technology rapidly evolves. As with earlier SIP agreements, property taxes would be partially abated for investments in these leading-edge tools.

The system is programmed not to send a report to a person who is the subject of the complaint. The person will not receive the notification email and will not be able to view the report. The Ethics Matters procedures describe the manner in which reports will be assigned to an appropriate employee or official for investigation.

A guiding principle for Washington County is for all County employees, officials and agents to commit ourselves to the highest standards of ethical conduct and to accept full accountability for our actions. The Ethics Matters Hotline is provided as a means for the public and employees to anonymously report allegations of governmental misconduct.

The Hotline provides both on-line (website) and operator-assisted (contact center) reporting options and augments other reporting options described in the Reporting of Improper Governmental Conduct Policy. The County will ensure that investigation and appropriate corrective action are undertaken in response to all reports received through the Hotline.

The Ethics Matters Hotline is one avenue for the public and employees to report misconduct. Additional reporting options are described in the Reporting of Improper Governmental Conduct Policy.

The Strategic Investment Program (SIP) was authorized by the 1993 Legislature to increase Oregon's ability to attract and retain capital-intensive industry and high-wage jobs. Projects approved for the SIP must pay full property taxes on the first $100 million invested, or first $25 million in a rural area, a cap that increases 3 percent each year. An annual Community Service Fee equal to 25 percent of abated taxes, up to $2 million in an urban area or $500,000 in a rural area, must also be paid. Additional fees can be negotiated.

Intel's SIP-related employment under the 2014 agreement is not expected to grow significantly. As Oregon's largest private-sector employer, Intel has worked cooperatively with the City of Hillsboro, Washington County and other jurisdictions to support the livability of neighboring communities. For example, Intel contributes to the cost of any traffic improvements carried out by the City of Hillsboro or Washington County when Intel facilities are built or expanded. In addition, Intel provides its employees with an alternative start time program, an inter-campus shuttle system, incentives for MAX ridership and carpooling. Through the 2014 agreement, Intel, Washington County and the City of Hillsboro have pledged to continue working on ways to improve transportation and other infrastructure supporting Intel's presence here and the livability of neighboring communities.

On August 26, 2014, the proposed agreement was considered and adopted after a joint public hearing before the Washington County Board of Commissioners and the Hillsboro City Council.

Before a proposal under the Strategic Investment Program can take effect, state law requires that a majority of the Board of County Commissioners and a majority of the Hillsboro City Council approve and that the county enter into an agreement with the business firm. If an eligible SIP project will be located in a city, as is the case with Intel's facilities in Hillsboro, that city must also enter into an agreement with the business firm. Finally, the business must submit an application for approval by the Oregon Business Development Commission.

The 2014 SIP agreement requires Intel to pay an estimated $350 million in property taxes and fees over the life of the agreement. This is significantly greater than the amount required by Oregon law under the Strategic Investment Program.

The agreement follows a precedent established with other Washington County SIP agreements of requiring fees equal to full property taxes on all land and buildings.

The hotline is intended as a vehicle to report Improper Governmental Conduct, including: 1) abuse of authority, 2) gross waste of funds, 3) mismanagement, 4) theft or misappropriation of County assets; and 5) violation(s) of County policy, State and/or Federal law(s).

An analysis by ECONorthwest, a private consulting firm, revealed that each of Intel's jobs in Hillsboro and Washington County created an additional three non-Intel jobs throughout the state. In 2012, this added up to nearly 68,000 jobs –about 4 percent of the State's workforce. Additionally in 2012, Intel's payroll amounted to $2.8 billion causing a ripple effect that led to a gross total of $327.7 million in state income taxes and local property taxes in support of public services statewide. This and previous studies of Intel's economic impact have measured this ripple effect across the local and state economy, contributing revenue and jobs to smaller businesses involved with real estate, retail, health care, entertainment and other markets. The most recent ECONorthwest study can be found at here.

The computers and electronics industry, and in particular semiconductor manufacturing, forms the core of the Greater Portland region's economy and exports. High-tech products are driving both wages and exports. Recent data from the Brookings Institution and JP Morgan Chase indicate that exports accounted for 24.4 percent of the Portland metro area's total economic output in 2012, ranking Portland fourth among the nation's largest 100 metro areas. The top three export sectors –semiconductors, computer equipment and precision instruments, all prominent elements of the Hillsboro's technology cluster –total more than $21.7 billion in annual exports, and make up 62 percent of the region's export value. Semiconductors are the top export, totaling $15.17 billion, which accounts for 44.7 percent of total exports.

Hillsboro's high-tech cluster, anchored by Intel, is populated by companies that range from relatively modest local specialty service providers that clean and service equipment to large, multinational corporations with operations on nearly every continent. A closer look at the industry shows companies specializing in equipment, materials, components and services are critical to primary makers such as Intel.As chip makers explore different designs, geometries, materials and functionalities, their key partners of necessity must collaborate with them as well. This is why Intel has attracted such a vibrant supplier population here.

Once a report is filed, the system generates an email to the Hotline Administrator. The Hotline Administrator will work with the Hotline Advisory Committee to assign the investigation to an appropriate “receiving employee or official.” This employee or official will either conduct the investigation or assign it to another employee or agency as appropriate. The receiving or investigating employee will conduct an investigation in accordance with the requirements of the Reporting of Improper Governmental Conduct Policy. Upon conclusion of the investigation, a written report will be prepared. The report will summarize the allegations and findings.

The Strategic Investment Program is a partnership on several levels. In terms of inter-governmental cooperation, the process involves the Governor's Office and Business Oregon working together with local governments to recruit major employers and support economic development. Public-private partnership is also at the heart of the process where local governments negotiate with capital-intensive businesses to create employment in areas where major investment would occur. These partnerships are critical for working through the details and complexities of such an investment.

SIP agreements have allowed local governments throughout Oregon to attract and retain capital-intensive businesses and high-wage jobs. Since 1993, agreements in Washington County have resulted in nearly $30 billion in investment and 18,000 jobs locating here. In the case of Intel, ECONorthwest, a private consulting firm, recently identified the following:

• In 2012, Intel had an annual payroll of $2.8 billion and 16,500 employees, making Intel the single-largest private-sector employer in Oregon.
• For every one Intel job, three additional jobs were created statewide.
• This ripple effect added up to nearly 68,000 jobs; about 4 percent of the state's workforce.
• Intel's total economic impact was also measured at $26.7 billion in 2012, or about 8.7 percent of the state's total.
• This ripple effect of economic impact has led to gross payments totaling $327.7 million in state income taxes and local property taxes in support of public services statewide.

The 2014 agreement focuses on job retention, so significant new employment is not anticipated. Intel has indicated that its investment would be geared toward its unique cycle of equipment replacement and retaining the 17,500 employees working in Washington County at the time the 2014 agreement was adopted. The multi-million-dollar machinery and equipment used in Intel's manufacturing process can become obsolete within a few years as the technology rapidly evolves. As with earlier SIP agreements, property taxes would be partially abated for investments in these leading-edge tools.

Yes, reports of misconduct will be reviewed and investigated as appropriate.

No, because Intel has consistently said that a SIP agreement would be required before its billions of dollars of investment in Washington County would be considered. Under the 2014 SIP agreement, Intel's land and buildings will continue to generate payments at a rate proportionate to those made by every other business in Washington County. Using prior Washington County SIP agreements as a model, any tax savings to Intel would come from its investment in chip-making equipment, which costs billions of dollars to create and can become obsolete after a few years. This approach would help continue Intel's level of investment in the community, continue job retention and the ripple effect of jobs at other businesses. This approach would also help continue property tax funding for county and city services, and continue state income tax funding for schools.