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HomeMy WebLinkAbout1999-0722 Study Session PACKET CITY COUNCIL STUDY SESSION Thursday;July 22,-1999 at 12:00 p.m. .' Council'Chambers 1: .. Discussion of the City's Economic Development policies. 2. Update on the Talent, Ashland,.Phoenix (TAP) Intertie and Related Water . Master Plan Implementation Process: 3'. Discussion of Proposed Process for Downtown Plan update. 4. Discussion of Draft Budget Committee Charge and Process for FY 2000- 2001. : City Council Communication Administration/Community Development Economic Development Policies July 22,.1999 Submitted by: Mike Freeman John McLaughlin - Title: Discussion of the City's Economic.Development policies. ' Synopsis: As part of the City's strategic planning process for 1999—2000, the Council adopted a goal to: "Develop printed materials that clearly outline the goals of the.City of Ashland which impact business relocation to/within the community." The City's comprehensive plan outlines the City's policy and strategy regarding economic development,however;there is some question about this policy meeting the existing Council's expectations. Staff has developed a recommended course of action, more to get discussion going rather than to presume that this recommendation is the-only or best way to proceed. It is recommended that the Council form a sub-committee with representatives from SOU, the Chamber, Friends of Ashland, and others to work on this project to advise the Council throughout the project. Their role would be to do the following: 1. Review the City's comprehensive plan on the economy,paying particular attention to the section called "The Future" and'the Goals found at the back of the 'chapter. Review the roles and responsibilities of the various entities involved in City economic development. 2. Determine if the existing Economy section of the comprehensive plan meets the community's expectations—if it does not; identify why it does not. Determine if the roles and responsibilities of the various entities in City economic development are meeting the needs of the City. 3. Making a presentation to the City Council on their recommendations. ' Following the presentation from the sub-committee,Council would discuss their interest in pursuing the recommendations of the committee. Council would then direct the staff to begin implementation of these recommendations including the development of the materials to use with businesses that are considering an investment in the community. Background Information Last-summer, the Ciy was asked to attend a meeting with a prospective high-tech firm who was contemplating moving their 30-person firm to 'Ashland. It became apparent that the City was not prepared for this meeting because there is"no information available that articulates the City's view of economic development,how.the land use process works,utility information,buildable lands inventory maps, etc. ' The staffs opinion is that the City has a fairly understandable policy,on economic development, it is just not stated. For instance,an existing business or a new business must build a high-, quality structure—conforming-to stringent,energy conservation codes for instance, it must conform with'' the City's high standards for architecture;it must address the City's alternative transportation goals, etc. In addition.to the City°needing to clarify its policies on economic development,.it'is unclear what the various roles of the players in economic development are: the,Chamber, SOREDI, SOU, the City, County, etc. It would be advantageous.to spend some time exploring the,various organizations' roles in economic development to determine if they are meeting the City's interest. If they are not,.we should' be open to making some changes. With the implementation of the fiber.optics system, it is'critically important to have this policy discussion now with the Council,in advance of certain business interest in the community for advanced telecommunications technology. City Council Communication Administration/Community Development Economic Development Policies July 22, 1999 Submitted by: Mike Freeman.John McLain , Title: Discussion of the City's Economic Development policies. Synopsis: As part of the City's strategic planning process for 1999—2000,the Council adopted a goal to: "Develop printed materials that clearly outline the goals of the City of Ashland which impact business relocation to/within the community." The City's comprehensive plan outlines the City's policy and strategy regarding economic development,however,there is some question about this policy meeting the existing Council's expectations. Staff has developed a recommended course of action, more to get discussion going rather than to presume that this recommendation is the only or best way to proceed. It is recommended that the Council form a sub-committee with representatives from SOU, the Chamber, Friends of Ashland, and others to work on this project to advise the Council throughout the project. Their role would be to do the following: 1. Review the City's comprehensive plan on the economy, paying particular attention to the section called "The Future" and the Goals found at the back of the chapter. Review the roles and responsibilities of the various entities involved in City economic development. 2. Determine if the existing Economy section of the comprehensive plan meets the community's expectations—if it does not, identify why it does not. Determine if the roles and responsibilities of the various entities in City economic development are meeting the needs of the City. 3. Making a presentation to the City Council on their recommendations. Following the presentation from the sub-committee,Council would discuss their interest in pursuing the recommendations of the committee. Council would then direct the staff to begin implementation of these recommendations including the development of the materials to use with businesses that are considering an investment in the community. Background Information Last summer, the City was asked to attend a meeting with a prospective high-tech firm who was contemplating moving their 30-person firm to Ashland. It became apparent that the City was not prepared for this meeting because there is no information available that articulates the City's view of economic development,how the land use process works, utility information,buildable lands inventory maps, etc. The staffs opinion is that the City has a fairly understandable policy on economic development,it is just not stated. For instance, an existing business or anew business must build a high- quality structure—conforming to stringent energy conservation codes for instance, it must conform with the City's high standards for architecture, it must address the City's alternative transportation goals,etc. In addition to the City needing to clarify its policies on economic development, it is unclear what the various roles of the players in economic development are: the Chamber, SOREDI, SOU, the City, County, etc. It would be advantageous to spend some time exploring the various organizations' roles in economic development to determine if they are meeting the City's interest. If they are not,we should be open to making some changes. With the implementation of the fiber optics system, it is critically important to have this policy discussion now with the Council, in advance of certain business interest in the community for advanced telecommunications technology. Update on the Talent, Ashland, Phoenix (TAP) Intertie and Related Water Master Plan Implementation Process (To be provided) Discussion of Proposed Process for Downtown Plan update (To be provided) City Council Communication Administration Budget Committee Charge/Process July 22, 1999 Submitted by: Mike Freeman Title: Discussion of DRAFT Budget Committee Charge and Process for FY 2000 -2001. Synopsis: Following the budget process this past year,the Budget Committee provided suggestions to the staff on how to improve the budget process for the City. What came from these suggestions was the need for the City Council to develop a charge for the Committee so that they clearly understand their role in the process. The Council agreed to begin working on a charge and a sub-committee of the Council was formed and has drafted the attached Charge. In addition to drafting the Charge, the sub-committee also discussed the process used this past year and has a recommendation for the Council to consider. The proposed process is also attached. Council is asked to review and discuss the Budget Committee Charge and proposed budget process and give direction to the staff on any changes you would like to see incorporated in these documents. a DRAFT City of Ashland Budget Committee Charge The State of Oregon mandates that all local governments establish Budget Committees made up of citizen members and elected officials. The purpose of the Budget Committee in Oregon is to promote efficiency and economy in the expenditure of public funds. Consistent with State policy, the Ashland City Council and the Ashland Parks Commission further has defined the respective roles of the Ashland Budget Committee and the City Council and Parks Commission in the annual budget process. As the plenary decision-making body of the City government, the City Council's role in this process is to establish general fiscal priorities and policies. More specifically, the City Council and Parks Commission develops long-term strategic plans and establishes specific goals and priorities for their organizations. The Budget Committee's role is to help assure that the City's budget document and fiscal practices addresses these priorities of the City Council and Parks Commission. Specifically the Budget Committee will: ► Accept and review the proposed fiscal year budget; ► Review the proposed budget to determine if it meets the policy and strategic goals of the City Council and Parks Commission; ► Review the performance of departments to determine if they are meeting the policy and strategic goals of the City Council and Parks Commission in an effective way; ► Determine if the City is efficiently managing and allocating the community's resources; and ► Recommend an approved budget to the City Council no later than May 1, 2000. DRAFT 2000 - 2001 Budget Process A sub-committee of the City Council and staff met and discussed the upcoming budget process for the 2000 - 2001 Fiscal Year. What came from that meeting is a suggestion for the Council to consider. It is different than the sub-committee process used in the past and different from the process used this past year having the entire budget committee hear all the presentations. The schedule will be set-up so that a budget committee member will be able to attend all the meetings if they choose or to choose the area (s) that are the most interest. The entire Budget Committee will meet at least two times, one for an overview and again to hear the capital plan presentation and the wrap-up. Who What Entire Budget Committee Budget Overview Sub-Committee's (expect 1-2 meeting per Social Services/CDBG sub-committee) Economic Development Sub-Committee's (expect 2-3 meetings per Central Services sub-committee) General Fund Enterprise Funds Entire Budget Committee Capital Plan Presentation Wrap-up Meeting Background Information Fire Station No. 1 In 1993, the City contracted with Urban Planning Associates, Inc. of Mission Viejo, California, to study the location of Ashland's two fire stations. A group of 12 Ashland citizens worked with the consultants to provide input. In addition to determining the optimum number of stations needed for Ashland, the group also established response time standards for fire and emergency medical services within the city based on the following: • National/state industry standards for fire station locations. • Response routes and population demographics. • Public safety goals of the City of Ashland. • Physical characteristics of the community. • Building construction and community planning. • Fire risk assessments. • Impact of alternate fire station sites on emergency service levels. The consultant's final report was received in October 1993, and the recommendations were: • "The present locations of both stations are the optimal sites for providing prompt fire & EMS responses throughout the city." • "The fire station location recommendations calls for the two present station locations to be retained." • "It is recommended that the present Fire Station No. 1 structure be demolished and that a new Fire Station No. 1 be constructed on the same site, or another suitable site in the same immediate area." Following the 1993 consultant's report,additional sites were looked at as a possible location for Fire Station No. 1. • Elk's Parking Lot. City representatives met with the Board of Trustees regarding the purchase. The response was favorable but after internal discussions, the Lodge voted not to sell the property. • Copeland Lumber. The primary reason the City did not pursue this site was poor access to eastbound calls on East Main/Siskiyou Boulevard. • Safeway. Safeway was unwilling to sell. • Post Office. The Post Office indicated that they wished to retain their existing site as a service.center and build a postal handling facility elsewhere. • Hald Property on the corner of East Main and Siskiyou. This site has poor access onto Lithia Way. • Western Bank. This is a heavy traffic area with frequent lane blockages because of vendor deliveries to local businesses. Benefits of reconstruction of Fire Station No. 1 on the existing site: • The City already owns %2 of the land needed. • The site provides good access to two primary arterial streets. • Response time analysis supports the present location as being"optimum". • The site provides a safe location from wildfire, major downtown business district fires, 100-year floods and adjacent commercial building collapses do to earthquakes. • In conjunction with the Library project, the location provides a gateway and public building presence for the eastern ends of the business district. Council Communication Legal Department OURCA IGA Ordinance July 20, 1999 Submitted by: Paul Nolte Approved by: Mike Freeman Title: An Ordinance Authorizing an Intergovernmental Agreement Creating the Oregon Utility Resource Coordination Association Intergovernmental Agency Synopsis: This ordinance authorizes the city, as do similar ordinances to be adopted by other Oregon municipalities, to join other consumer-owned utilities for the purpose of power purchases and sales. Recommendation: Move to adopt first reading of ordinance. Background Information: In order to effectively sustain their viability and compete for the purchase and sale of electric power after deregulation, many of the consumer-owned utilities in Oregon are joining forces through the formation of this new intergovernmental agency. By statute, intergovernmental agencies may form only if each member jurisdiction adopts an ordinance setting forth the purposes and requirements of the agency. By forming the agency, the agency and its members intend to further the economy and efficiency of their systems by the purchase, sale, generation, transmission, distribution, interchange or pooling of electrical energy and capacity among them or with others. In addition, specific purposes of the agency include to arrange scheduling and dispatching of power, energy, capacity or transmission for the account any member or the agency; to purchase, sell, negotiate or advocate and study the most economic and efficient procurement of power, energy, capacity, assets, generation facilities, transmission or ancillary services. Additional background information will be provided by Pete Lovrovich in the council packet prior to the meeting. ORDINANCE NO. AN ORDINANCE AUTHORIZING AN INTERGOVERNMENTAL AGREEMENT CREATING THE OREGON UTILITY RESOURCE COORDINATION ASSOCIATION INTERGOVERNMENTAL AGENCY THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Declaration of intent. The City of Ashland, Oregon, by and through its elected mayor and council, intends to create the Oregon Utility Resource Coordination Association Intergovernmental Agency (OURCA IGA) pursuant to ORS 190.003 through 190.265 by an intergovernmental agreement (Agreement) with the following parties: the City of Ashland; Clatskanie People's Utility District; Columbia River People's Utility District; Emerald People's Utility District; Eugene Water & Electric Board; the City of Forest Grove, Water& Light Department; McMinnville Water and Light Commission; Northern Wasco County People's Utility District; Springlfield Utility Board; and Tillamook People's Utility District (each of which is referred to individually as a "Party" and collectively as the "Parties"). A draft of the Agreement is attached as Exhibit A. SECTION 2. The effective date of the Agreement is August 15, 1999. SECTION 3. The public purposes for which the OURCA IGA is created is to use any authority vested in the OURCA IGA to further the economy and efficiency of each Party by the purchase, sale, generation, transmission, distribution, interchange or pooling of electrical energy and capacity among the Parties or with others. SECTION 4. To carry out its public purposes, the OURCA IGA shall have the following powers, duties and functions, in addition to those specified in ORS 190.003 through ORS 190.265: A. To arrange scheduling and dispatching of power, energy, capacity or transmission for the account of a Party or the OURCA IGA; B. To purchase power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party or the OURCA IGA; C. To sell power, energy, capacity, assets, generation facilities, transmission, or ancillary services for the account of a Party or the OURCA IGA which is not needed to meet the loads of the Party or the OURCA IGA; D. To negotiate or advocate for power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party or the OURCA IGA, including related administrative and legal proceedings; Page 1 - ORDINANCE FAUSEMPAUUORMOURCA Ordinanoempd E. To study the most economic and efficient procurement of power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party or the OURCA IGA; F. To perform the administration and accounting of all payments and receipts related to the purchase and sale of power, energy, capacity, assets, generation facilities, transmission, or services for the account of a Party or the OURCA IGA; G. To adopt such bylaws, rules, regulations, and policies as the Parties deem necessary to further the purposes of this Agreement; H. To issue, sell or otherwise dispose of bonds, securities, or other forms of indebtedness, including the power to issue revenue bonds under ORS 288.805 to ORS 288. 945; I. To exercise all powers pursuant to the applicable acts, charters or law of the individual Parties which are necessary or desirable to economically and efficiently develop and operate the OURCA IGA. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 1999, and duly PASSED and ADOPTED this _ day of 1999. Barbara Christensen, City Recorder SIGNED and APPROVED this day of ' 1999. Catherine M. Shaw, Mayor Re ' wed as to for : N Paul Nolte, City Attorney Page 2 - ORDINANCE FAUSEMPAWORMOURCA Ordinance.wpd EXHIBIT A INTERGOVERNMENTAL AGREEMENT CREATING THE OREGON UTILITY RESOURCE COORDINATION ASSOCIATION INTERGOVERNMENTAL AGENCY THIS INTERGOVERNMENTAL AGREEMENT CREATING THE OREGON UTILITY RESOURCE COORDINATION ASSOCIATION INTERGOVERNMENTAL AGENCY (Agreement) is entered into by and between the following parties: the City of Ashland, a municipal corporation of the State of Oregon (Ashland); Clatskanie People's Utility District, an Oregon people's utility district (PUD) formed under ORS Chapter 261 (Clatskanie PUD); Columbia River People's Utility District, an Oregon PUD formed under ORS Chapter 261 (Columbia River PUD); Emerald People's Utility District, an Oregon PUD formed under ORS Chapter 261 (Emerald PUD); Eugene Water &Electric Board, a municipal utility of the State of Oregon (EWEB); the City of Forest Grove, a municipal corporation of the State of Oregon, acting by and through its Light and Power Department (Forest Grove); the City of McMinnville, a municipal corporation of the State of Oregon, acting by and through the McMinnville Water and Light Commission (MW&L); Northern Wasco County People's Utility District, an Oregon PUD formed under ORS Chapter 261 (Northern Wasco PUD); and Tillamook People's Utility District, an Oregon PUD formed under ORS Chapter 261 (Tillamook PUD) (each of which is referred to herein individually as a "Party" and collectively as the "Parties"). RECITALS: A. WHEREAS, the Parties hereto are authorized to enter into this Agreement creating the Oregon Utility Resource Coordination Association Intergovernmental Agency(OURCA IGA) pursuant to their respective principal acts, charters, and ORS 190.003 to 190.265; B. WHEREAS, each of the Parties operates a consumer-owned electric utility in the State of Oregon and is authorized to purchase, generate, transmit, distribute, sell and interchange electric energy within and without their individual boundaries; C. WHEREAS, the Parties intend to further the economy and efficiency of their respective consumer-owned electric utilities by forming the OURCA IGA; D. WHEREAS, pursuant to ORS 190.010, the OURCA IGA may perform any or all functions and activities that a Party to this Agreement, its officers or agencies, has the authority to perform; E. WHEREAS, the Parties intend by this Agreement to set forth the parameters, terms, and conditions pursuant to which the OURCA IGA will act; F. WHEREAS, the Parties intend to use any authority vested in the OURCA IGA to further the economy and efficiency of each Party by the purchase, sale, generation, transmission, distribution, interchange or pooling of electrical energy and capacity among the Parties or with others; - 1 - G. WHEREAS, each of the Parties has taken all actions required under applicable acts, charters and law to authorize the execution and performance of this Agreement; NOW, THEREFORE, THE PARTIES agree as follows: ARTICLE I OURCA IGA 1.1 OURCA IGA. There is hereby created the Oregon Utility Resource Coordination Association Intergovernmental Agency, referred to herein as the OURCA IGA. The parties to the OURCA IGA are Ashland, Clatskanie PUD, Columbia River PUD, Emerald PUD, EWEB, Forest Grove, MW&L,Northern Wasco PUD, and Tillamook PUD. 1.2 Effective Date. The effective date of this Agreement is August 15, 1999. 1.3 General Powers. The OURCA IGA shall have the following powers, in addition to those specified in ORS 190.003 to ORS 190.265: 1.3.1 To arrange scheduling and dispatching of power, energy, capacity or transmission for the account of a Party, Parties or the OURCA IGA; 1.3.2 To purchase power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party, Parties or the OURCA IGA; 1.3.3 To sell power, energy, capacity, assets, generation facilities, transmission, or ancillary services for the account of a Party, Parties or the OURCA IGA which is not needed to meet the loads of the Party, Parties or the OURCA IGA; 1.3.4 To negotiate or advocate for power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party, Parties or the OURCA IGA, including administrative and legal proceedings related thereto; 1.3.5 To study the most economic and efficient procurement of power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party, Parties or the OURCA IGA; 1.3.6 To perform the administration and accounting of all payments and receipts related to the purchase and sale of power, energy, capacity, assets, generation facilities, transmission, or services for the account of a Party, Parties or the OURCA IGA; 1.3.7 To adopt such bylaws, rules, regulations, and policies as the Parties deem necessary to further the purposes of this Agreement; 1.3.8 To issue, sell or otherwise dispose of bonds, securities, or other forms of indebtedness, including the power to issue revenue bonds under ORS 288.805 to ORS 288.945; 2 1.3.9 To exercise all powers pursuant to the applicable acts, charters or law of the individual Parties which are necessary or desirable to economically and efficiently develop and operate the OURCA IGA. 1.4. Meetings. Meetings of the OURCA IGA shall be conducted in accordance with the provisions of the Oregon Public Meetings Law, ORS 192.610 to 192.710. 1.5 Offices. The principal offices of the OURCA IGA shall be located at 1001 S.W. Fifth Avenue, Suite 2000, Portland OR, 97204, c/o Cable Huston Benedict Haagensen & Lloyd, LLP. 1.6 Budgeting. The Board shall provide for an annual work plan and an estimate of expenses for the next fiscal year. Each Party shall provide in-kind services to further the purposes of the OURCA IGA as each Party deems necessary or desirable. Such in-kind services shall not be reimbursed from the OURCA IGA or other Parties, unless otherwise agreed. 1.7 Several Liability. Unless as otherwise expressly agreed in writing, there shall be no joint and several liability of the Parties either in contract or tort and all obligations of the OURCA IGA or the Parties shall be several only. Without limiting the foregoing, no Party to the OURCA IGA shall be liable for damages, debts or claims caused solely by the negligent act, omission or other wrongful act by the OURCA IGA or other Parties. The Party causing damage by its sole negligent act, omission or wrongful act shall be individually liable. ARTICLE II GOVERNANCE AND MEMBERSHIP 2.1 Board of Directors. The OURCA IGA shall be governed by a Board of Directors (Board). The governing body of each Party shall appoint one (1) representative to the Board and one(1) alternate representative. An alternative representative shall act in a Board capacity only during the absence of that Party's representative. Representatives and alternate representatives shall serve at the pleasure of their respective governing bodies. In the event of a vacancy, the governing body of the Party shall appoint a successor. 2.2 Officers. After the effective date of this Agreement, the Board shall elect from its membership a President, a Vice-President, and a Secretary/Treasurer(collectively, the "Officers") who shall serve a term consisting of the remainder of 1999 and the following calendar year. Thereafter, annually, at the beginning of each calendar year, the Board shall elect from its membership Officers who shall serve a term of one(1) year. Officers shall serve at the pleasure of the Board or until their successors shall be appointed and take office. 2.2.1 Duties of President. The President shall preside at all meetings of the OURCA IGA and shall submit such recommendations and information as she or he may determine appropriate to discuss at the OURCA IGA meeting. The President shall perform the duties and responsibilities of the OURCA IGA in accordance with the obligations and limitations set forth in this Agreement. The President shall otherwise not hold herself or himself out to have the authority to bind the members of the OURCA IGA to any financial or other obligations. - 3 - 2.2.2 Duties of Vice President. The Vice President shall perform the duties of the President in the absence or the incapacity of the President. In the case of the resignation or the death of the President, the Vice President shall perform the duties of the President until such time as the Board shall elect a new President. 2.2.3 Secretary/Treasurer. The Secretary/Treasurer shall keep the minutes and the official records of the OURCA IGA and perform such other duties required of a Secretary/Treasurer. The Secretary/Treasurer shall be responsible for the fiscal administration of all funds of the OURCA IGA. The Secretary/Treasurer and either the President or the Vice President shall act as co-signers of checks drawn upon the accounts of the OURCA IGA. The Secretary/Treasurer may delegate the administrative functions of her or his office to another person or persons who need not be on the Board. 2.2.4 Additional Duties. The Officers of the OURCA IGA shall perform such other duties and functions as may from time to time be required by the OURCA IGA bylaws, or other rules and regulations. 2.3 Executive Committee. The Board may establish an Executive Committee that will be comprised of the three Officers and two additional Board members. The Executive Committee shall have the duties, responsibilities and a term all as determined by the Board from time to time. 2.4 Voting Rights. Except as otherwise expressly provided in this Agreement, the Board shall exercise its voting rights in the following manner: 2.4.1 Quorum. A majority of the Board shall constitute a quorum for the transaction of business. 2.4.2 General Administrative Obligations. Except as provided in Sections 2.4.3 and 2.4.4, general administrative obligations or activities required to meet legal requirements or policies related to the existence of the OURCA IGA or its operations may be acted upon by a majority vote of the Board. General administrative obligations or activities include,but are not limited to, the election of officers, compliance with the Oregon Public Meetings Law, ORS 192.610 to ORS 192.710 and preparation of an annual work plan. Each Party's apportioned share of the general administrative obligations or activities shall be determined in accordance with the following Cost Allocation Methodology. Fifty percent (50%) of costs are shared equally among all Parties. Twenty-five percent (25%) of costs shall be based on the ratio of a Party's retail electricity sales in terms of megawatt hours as compared to the total OURCA IGA Parties'retail electricity sales in terms of megawatt hours. The remaining twenty-five percent (25%) of costs shall be based on the ratio of a Party's retail electricity revenues as compared to the total OURCA IGA Parties'retail electricity revenues. The Board will update the application of the Cost Allocation Methodology upon the entry or exit of any Party from the OURCA IGA or at least annually. The initial Cost Allocation Methodology, and the resulting percentage allocated to each Party, is attached as Exhibit A. - 4 - s 2.4.3 Employment of Staff or Consultants. Except as provided in Sections 2.4.2 and 2.4.4, the employment of staff or consultants, including the hiring and terminating of any staff, employees or consultants, shall require the authorization of the Board pursuant to the following two voting mechanisms: (1) A majority vote of the Board; and (2) A majority vote of the Board, with each Board representative's vote equal to the percentage allocated to each Party as specified in the Cost Allocation Methodology attached in Exhibit A. Each Party's apportioned share of employment related expenses shall be determined in accordance with the Cost Allocation Methodology. The Board may delegate the employment of staff or consultants, including the hiring and terminating of any staff, employees or consultants, to another person or persons, upon a majority vote of the Board, with each Board representative's vote equal to the percentage allocated to each Party as specified in the Cost Allocation Methodology attached as Exhibit A. 2.4.4 Procurement of Goods and Services and the Issuance or Sale of Bonds, Securities or Other Forms of Indebtedness. Except as provided in Sections 2.4.2 and 2.4.3; the procurement of goods and services, including but not limited to the purchase of generation facilities and power supply contracts, and the issuance or sale of bonds, securities or other forms of indebtedness, including but not limited to the issuance of revenue bonds under ORS 288.805 to ORS 288.945, requires the affirmative authorization of each individual Party to be bound, such authorization to be expressed by resolution, ordinance or other binding commitment of the Party's governing body. Parties not affirmatively authorizing such actions shall in no instances be liable. The procurement of goods and services be performed by resolution or separate agreement which specifies (1) the apportionment of fees, costs, or revenue derived from the functions and activities; and (2) the manner in which such revenue shall be accounted for. Such resolution or separate agreement may or may not involve the participation of the OURCA IGA, however, such participation of the OURCA IGA shall not create liability for a Party that has not affirmatively authorized such action. 2.4.5 Voting By Proxy. Any Board representative may vote by proxy, provided that the proxy power is granted to the proxy voter in writing and the effective proxy period is specified. 2.4.6 Voting In Absentia. Any Board representative may vote in absentia by telephone or in writing, including by facsimile. Any written vote in absentia must be received prior to the meeting at which the vote is to occur and must be signed by the Board representative. 2.5 New Parties. The Board may authorize a new Party to join the OURCA IGA if approved by 2/3 vote of the Board. 2.6 Insurance. The OURCA IGA shall provide for adequate insurance to cover the directors, officers, employees, staff, agents and activities undertaken by the OURCA IGA. 2.7 Conflicts. The OURCA IGA shall not take an advocacy position in administrative or legal proceedings which position conflicts with the position taken by any individual Party. Parties shall notify the OURCA IGA of any such potential conflict. - 5 - I ARTICLE III TERM AND TERMINATION 3.1 Term. Except as expressly provided, the term of this Agreement shall be perpetual, unless by a unanimous vote the Board acts to dissolve the OURCA IGA. 3.1.1 Dissolution. Upon dissolution, each Party to the OURCA IGA on the date of dissolution shall remain liable solely for its individual share of any OURCA IGA expenditure that has been specifically incurred by the Party in accordance with the terms of this Agreement or by other resolutions or separate agreements of the Party. Upon dissolution, the assets of the OURCA IGA shall be distributed to the members on the basis of the rights and obligations of each Party to the assets held as of the date of the dissolution. 3.2 Voluntary Withdrawal by a Party. Any Party may elect to terminate their participation in this Agreement and withdraw from the OURCA IGA by giving written notice to the President and each member of the OURCA IGA. Withdrawal shall be effective forty-five (45) days from the date of notice. The withdrawing Party shall continue to pay its apportioned share of or be responsible for, any debt attributable to that Party incurred prior to the Party's written notice of withdrawal, and shall hold harmless the remaining Parties and the OURCA IGA for those financial responsibilities and obligations attributable solely to the withdrawing Party. 3.3 Involuntary Withdrawal of a Party. By a 2/3 vote of the Board, any Party may be requested to withdraw from the OURCA IGA and relinquish their powers and duties under this Agreement. The President of the OURCA IGA shall notify such Party by written notice addressed to that Party. Unless as otherwise agreed by a 2/3 vote of the Board, termination of the Party is effective forty-five (45) days from the date of notice. The withdrawing Party shall continue to pay its apportioned share of, or be responsible for, any previously incurred debt pursuant to Sections 2.4.2 and 2.4.3 that is attributable to that Party as of the effective date of the withdrawal, and shall hold harmless the remaining Parties for those financial responsibilities and obligations attributable solely to the withdrawing Party. ARTICLE IV DISPUTE RESOLUTION 4.1 Dispute Resolution. If a dispute arises between the Parties or between the OURCA IGA and the Parties regarding breach of this Agreement or interpretation of any term of this Agreement, the Parties shall first attempt to resolve the dispute by negotiation, followed by binding arbitration if negotiation fails to resolve the dispute. 4.1.1 Negotiation. The Board Member or other persons designated by each of the disputing Parties will negotiate on behalf of the Parties they represent. The nature of the dispute shall be reduced to writing and shall be presented to each of the disputing Parties who shall then meet and attempt to resolve the issue. If the dispute is resolved at this step, there shall be a - 6 - a written determination of such resolution, signed by each disputing Party and ratified by the OURCA IGA which shall be binding upon the Parties. 4.1.2 Binding Arbitration. If the dispute cannot be resolved by negotiation within forty-five(45) days, the parties shall submit the matter to binding arbitration. The Parties shall attempt to agree on an arbitrator. If they cannot agree upon an arbitrator within ten (10) days, the Parties shall submit the matter of determining an arbitrator to the Presiding Judge of the Marion County Circuit Court. The common costs of the arbitration shall be bome equally by the Parties. Each Party must bear its individual costs and fees. ARTICLE V AMENDMENT 5.1 This Agreement, other than Sections 1.7, 2.4, 2.5, 3.2, 3.3, and 5.1 may be amended upon a majority vote of the Board and shall be prepared by mutual written agreement of the Parties, signed by all of the Parties. Sections 1.7, 2.4, 2.5, 3.2, 3.3, and 5.1 of this Agreement may be amended only upon the affirmative authorization of each Party. ARTICLE VI GENERAL PROVISIONS 6.1 Merger. This Agreement embodies the entire agreement and understanding between the Parties relating to the formation of the OURCA IGA hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. 6.2 Severability. In case any one or more of the provisions contained in this Agreement should be invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 6.3 Notice. Any notice herein required or permitted to be given shall be given in writing, shall be effective when actually received, and may be given by hand delivery or by certified mail, first class postage prepaid, addressed to the Parties as follows: General Manager General Manager City of Ashland Clatskanie People's Utility District Department of Electric Utilities P. O. Box 216 City Hall Clatskanie, OR 97016 20 East Main Ashland, OR 97520 General Manager General Manager Columbia River People's Emerald People's Utility District Utility District 33733 Seavey Loop Road P. O. Box 1193 Eugene, OR 97405 - 7 - St. Helens, OR 97051 General Manager General Manager Eugene Water& Electric Board Forest Grove Light&Power 500 East Fourth Avenue Box 326 Eugene, OR 97440 Forest Grove, OR 97116 General Manager General Manager McMinnville Water & Light Northern Wasco People's 855 Marsh Lane Utility District McMinnville, OR 97128 P. O. Box 621 The Dalles, OR 97058 General Manager Tillamook People's Utility District P. O. Box 433 Tillamook, OR 97141 6.4 Counterparts. This Agreement may be executed in any number of counterparts and by the parties on separate counterparts, any one of which shall constitute an agreement between and among the Parties. IN WITNESS WHEREOF, the Parties have executed this Agreement by the date set forth opposite their names below. Date: Pete Lovrovich, General Manager City of Ashland Department of Electric Utilities Date: Greg Booth, General Manager Clatskanie People's Utility District Date: Fergus Pilon, General Manager Columbia River People's Utility District Date: Jeff Shields, General Manager Emerald People's Utility District - 8 - Date: Randy Berggren, General Manager Eugene Water& Electric Board Date: Dave Bouchard, General Manager Forest Grove Light & Power Date: Edward J. Gormley, Mayor and Ex-Officio Member of the McMinnville Water& Light Commission STATE OF OREGON ) ) ss. County of ) Personally appeared before me the above-named Edward J. Gormley and acknowledges the foregoing instrument to be his voluntary act and deed. SUBSCRIBED AND SWORN to before me this_day of , 1999. Notary Public for the State of Oregon Residing at My Commission Expires: Date: Dwight Langer, General Manager Northern Wasco People's Utility District Date: Patrick Ashby, General Manager Tillamook People's Utility District - 9 - Council Communication Legal Department OURCA IGA Ordinance July 20, 1999 Submitted by: Paul Nolte Approved by: Mike Freeman Title: An Ordinance Authorizing an Intergovernmental Agreement Creating the Oregon Utility Resource Coordination Association Intergovernmental Agency Synopsis: This ordinance authorizes the city, as do similar ordinances to be adopted by other Oregon municipalities, to join other consumer-owned utilities for the purpose of power purchases and sales. Recommendation: Move to adopt first reading of ordinance. Background Information: In order to effectively sustain their viability and compete for the purchase and sale of electric power after deregulation, many of the consumer-owned utilities in Oregon are joining forces through the formation of this new intergovernmental agency. By statute, intergovernmental agencies may form only if each member jurisdiction adopts an ordinance setting forth the purposes and requirements of the agency. By forming the agency, the agency and its members intend to further the economy and efficiency of their systems by the purchase, sale, generation, transmission, distribution, interchange or pooling of electrical energy and capacity among them or with others. In addition, specific purposes of the agency include to arrange scheduling and dispatching of power, energy, capacity or transmission for the account any member or the agency; to purchase, sell, negotiate or advocate and study the most economic and efficient procurement of power, energy, capacity, assets, generation facilities, transmission or ancillary services. Additional background information will be provided by Pete Lovrovich in the council packet prior to the meeting. ORDINANCE NO. AN ORDINANCE AUTHORIZING AN INTERGOVERNMENTAL AGREEMENT CREATING THE OREGON UTILITY RESOURCE COORDINATION ASSOCIATION INTERGOVERNMENTAL AGENCY THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Declaration of intent. The City of Ashland, Oregon, by and through its elected mayor and council, intends to create the Oregon Utility Resource Coordination Association Intergovernmental Agency (OURCA IGA) pursuant to ORS 190.003 through 190.265 by an intergovernmental agreement (Agreement) with the following parties: the City of Ashland; Clatskanie People's Utility District; Columbia River People's Utility District; Emerald People's Utility District; Eugene Water& Electric Board; the City of Forest Grove, Water & Light Department; McMinnville Water and Light Commission; Northern Wasco County People's Utility District; Springlfield Utility Board; and Tillamook People's Utility District (each of which is referred to individually as a "Party" and collectively as the "Parties"). A draft of the Agreement is attached as Exhibit A. SECTION 2. The effective date of the Agreement is August 15, 1999. SECTION 3. The public purposes for which the OURCA IGA is created is to use any authority vested in the OURCA IGA to further the economy and efficiency of each Party by the purchase, sale, generation, transmission, distribution, interchange or pooling of electrical energy and capacity among the Parties or with others. SECTION 4. To carry out its public purposes, the OURCA IGA shall have the following powers, duties and functions, in addition to those specified in ORS 190.003 through ORS 190.265: A. To arrange scheduling and dispatching of power, energy, capacity or transmission for the account of a Parry or the OURCA IGA; B. To purchase power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party or the OURCA IGA; C. To sell power, energy, capacity, assets, generation facilities, transmission, or ancillary services for the account of a Party or the.OURCA IGA which is not needed to meet the loads of the Party or the OURCA IGA; D. To negotiate or advocate for power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party or the OURCA IGA, including related administrative and legal proceedings; Page 1 - ORDINANCE F:WSERTAUUORMOURCAOrdinancempd E. To study the most economic and efficient procurement of power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party or the OURCA IGA; F. To perform the administration and accounting of all payments and receipts related to the purchase and sale of power, energy, capacity, assets, generation facilities, transmission, or services for the account of a Party or the OURCA IGA; G. To adopt such bylaws, rules, regulations, and policies as the Parties deem necessary to further the purposes of this Agreement; H. To issue, sell or otherwise dispose of bonds, securities, or other forms of indebtedness, including the power to issue revenue bonds under ORS 288.805 to ORS 288. 945; I. To exercise all powers pursuant to the applicable acts, charters or law of the individual Parties.which are necessary or desirable to economically and efficiently develop and operate the OURCA IGA. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 1999, and duly PASSED and ADOPTED this_ day of ' 1999. Barbara Christensen, City Recorder SIGNED and APPROVED this day of 11999. Catherine M. Shaw, Mayor Re wed as to for : Paul Nolte, City Attorney Page 2 - ORDINANCE FAUSERTAWORMOURCA Ordinancempd EXHIBIT A INTERGOVERNMENTAL AGREEMENT CREATING THE OREGON UTILITY RESOURCE COORDINATION ASSOCIATION INTERGOVERNMENTAL AGENCY THIS INTERGOVERNMENTAL AGREEMENT CREATING THE OREGON UTILITY RESOURCE COORDINATION ASSOCIATION INTERGOVERNMENTAL AGENCY (Agreement) is entered into by and between the following parties: the City of Ashland, a municipal corporation of the State of Oregon (Ashland); Clatskanie People's Utility District, an Oregon people's utility district (PUD) formed under ORS Chapter 261 (Clatskanie PUD); Columbia River People's Utility District, an Oregon PUD formed under ORS Chapter 261 (Columbia River PUD); Emerald People's Utility District, an Oregon PUD formed under ORS Chapter 261 (Emerald PUD); Eugene Water& Electric Board, a municipal utility of the State of Oregon (EWEB); the City of Forest Grove, a municipal corporation of the State of Oregon, acting by and through its Light and Power Department (Forest Grove); the City of McMinnville, a municipal corporation of the State of Oregon, acting by and through the McMinnville Water and Light Commission (MW&L);Northern Wasco County People's Utility District, an Oregon . PUD formed under ORS Chapter 261 (Nor-them Wasco PUD); and Tillamook People's Utility District, an Oregon PUD formed under ORS Chapter 261 (Tillamook PUD) (each of which is referred to herein individually as a "Party" and collectively as the "Parties"). RECITALS: A. WHEREAS, the Parties hereto are authorized to enter into this Agreement creating the Oregon Utility Resource Coordination Association Intergovernmental Agency(OURCA IGA) pursuant to their respective principal acts, charters, and ORS 190.003 to 190.265; B. WHEREAS, each of the Parties operates a consumer-owned electric utility in the State of Oregon and is authorized to purchase, generate, transmit, distribute, sell and interchange electric energy within and without their individual boundaries; C. WHEREAS, the Parties intend to further the economy and efficiency of their respective consumer-owned electric utilities by forming the OURCA IGA; 1 D. WHEREAS, pursuant to ORS 190.010, the OURCA IGA may perform any or all functions and activities that a Party to this Agreement, its officers or agencies, has the authority to perform; E. WHEREAS, the Parties intend by this Agreement to set forth the parameters, terms, and conditions pursuant to which the OURCA IGA will act; F. WHEREAS, the Parties intend to use any authority vested in the OURCA IGA to further the economy and efficiency of each Party by the purchase, sale, generation, transmission, distribution, interchange or pooling of electrical energy and capacity among the Parties or with others; - 1 - G. WHEREAS, each of the Parties has taken all actions required under applicable acts, charters and law to authorize the execution and performance of this Agreement; NOW, THEREFORE, THE PARTIES agree as follows: ARTICLE I OURCAIGA 1.1 OURCA IGA. There is hereby created the Oregon Utility Resource Coordination Association Intergovernmental Agency, referred to herein as the OURCA IGA. The parties to the OURCA IGA are Ashland, Clatskanie PUD, Columbia River PUD, Emerald PUD, EWEB, Forest Grove, MW&L,Northern Wasco PUD, and Tillamook PUD. 1.2 Effective Date. The effective date of this Agreement is August 15, 1999. 1.3 General Powers. The OURCA IGA shall have the following powers, in addition to those specified in ORS 190.003 to ORS 190.265: 1.3.1 To arrange scheduling and dispatching of power, energy, capacity or transmission for the account of a Party, Parties or the OURCA IGA; 1.3.2 To purchase power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party, Parties or the OURCA IGA; 1.3.3 To sell power, energy, capacity, assets, generation facilities, transmission, or ancillary services for the account of a Party, Parties or the OURCA IGA which is not needed to meet the loads of the Party, Parties or the OURCA IGA; 1.3.4 To negotiate or advocate for power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party, Parties or the OURCA IGA, including administrative and legal proceedings related thereto; 1.3.5 To study the most economic and efficient procurement of power, energy, capacity, assets, generation facilities, transmission or ancillary services for the account of a Party, Parties or the OURCA IGA; 1.3.6 To perform the administration and accounting of all payments and receipts related to the purchase and sale of power, energy, capacity, assets, generation facilities, transmission, or services for the account of a Party, Parties or the OURCA IGA; 1.3.7 To adopt such bylaws, rules, regulations, and policies as the Parties deem necessary to further the purposes of this Agreement; 1.3.8 To issue, sell or otherwise dispose of bonds, securities, or other forms of indebtedness, including the power to issue revenue bonds under ORS 288.805 to ORS 288.945; 2 1.3.9 To exercise all powers pursuant to the applicable acts, charters or law of the individual Parties which are necessary or desirable to economically and efficiently develop and operate the OURCA IGA. 1.4. Meetings. Meetings of the OURCA IGA shall be conducted in accordance with the provisions of the Oregon Public Meetings Law, ORS 192.610 to 192.710. 1.5 Offices. The principal offices of the OURCA IGA shall be located at 1001 S.W. Fifth Avenue, Suite 2000, Portland OR, 97204, c/o Cable Huston Benedict Haagensen & Lloyd, LLP. 1.6 Budgeting. The Board shall provide for an annual work plan and an estimate of expenses for the next fiscal year. Each Party shall provide in-kind services to further the purposes of the OURCA IGA as each Party deems necessary or desirable. Such in-kind services shall not be reimbursed from the OURCA IGA or other Parties, unless otherwise agreed. 1.7 Several Liability. Unless as otherwise expressly agreed in writing, there shall be no joint and several liability of the Parties either in contract or tort and all obligations of the OURCA IGA or the Parties shall be several only. Without limiting the foregoing, no Party to the OURCA IGA shall be liable for damages, debts or claims caused solely by the negligent act, omission or other wrongful act by the OURCA IGA or other Parties. The Party causing damage by its sole negligent act, omission or wrongful act shall be individually liable. ARTICLE Ih GOVERNANCE AND MEMBERSHIP 2.1 Board of Directors. The OURCA IGA shall be governed by a Board of Directors (Board). The governing body of each Party shall appoint one(1) representative to the Board and one (1) alternate representative. An alternative representative shall act in a Board capacity only during the absence of that Party's representative. Representatives and alternate representatives shall serve at the pleasure of their respective governing bodies. In the event of a vacancy, the governing body of the Party shall appoint a successor. 2.2 Officers. After the effective date of this Agreement, the Board shall elect from its membership a President, a Vice-President, and a Secretary/Treasurer(collectively, the "Officers") who shall serve a term consisting of the remainder of 1999 and the following calendar year. Thereafter, annually, at the beginning of each calendar year, the Board shall elect from its membership Officers who shall'serve a term of one (1) year. Officers shall serve at the pleasure of the Board or until their successors shall be appointed and take office. 2.2.1 Duties of President. The President shall preside at all meetings of the OURCA IGA and shall submit such recommendations and information as she or he may determine appropriate to discuss at the OURCA IGA meeting. The President shall perform the duties and responsibilities of the OURCA IGA in accordance with the obligations and limitations set forth in this Agreement. The President shall otherwise not hold herself or himself out to have the authority to bind the members of the OURCA IGA to any financial or other obligations. - 3 - 2.2.2 Duties of Vice President. The Vice President shall perform the duties of the President in the absence or the incapacity of the President. In the case of the resignation or the death of the President, the Vice President shall perform the duties of the President until such time as the Board shall elect a new President. 2.2.3 Secretary/Treasurer. The Secretary/Treasurer shall keep the minutes and the official records of the OURCA IGA and perform such other duties required of a Secretary/Treasurer. The Secretary/Treasurer shall be responsible for the fiscal administration of all funds of the OURCA IGA. The Secretary/Treasurer and either the President or the Vice President shall act as co-signers of checks drawn upon the accounts of the OURCA IGA. The Secretary/Treasurer may delegate the administrative functions of her or his office to another person or persons who need not be on the Board. 2.2.4 Additional Duties. The Officers of the OURCA IGA shall perform such other duties and functions as may from time to time be required by the OURCA IGA bylaws, or other rules and regulations. 2.3 Executive Committee. The Board may establish an Executive Committee that will be comprised of the three Officers and two additional Board members. The Executive Committee shall have the duties, responsibilities and a term all as determined by the Board from time to time. 2.4 Voting Rights. Except as otherwise expressly provided in this Agreement, the Board shall exercise its voting rights in the following manner: 2.4.1 Quorum. A majority of the Board shall constitute a quorum for the transaction of business. 2.4.2 General Administrative Obligations. Except as provided in Sections 2.4.3 and 2.4.4, general administrative obligations or activities required to meet legal requirements or policies related to the existence of the OURCA IGA or its operations may be acted upon by a majority vote of the Board. General administrative obligations or activities include, but are not limited to, the election of officers, compliance with the Oregon Public Meetings Law, ORS 192.610 to ORS 192.710 and preparation of an annual work plan. Each Party's apportioned share of the general administrative obligations or activities shall be determined in accordance with the following Cost Allocation Methodology. Fifty percent (50%) of costs are shared equally among all Parties. Twenty-five percent(25%) of costs shall be based on the ratio of a Party's retail electricity sales in terms of megawatt hours as compared to the total OURCA IGA Parties' retail electricity sales in terms of megawatt hours. The remaining twenty-five percent (25%) of costs shall be based on the ratio of a Party's retail electricity revenues as compared to the total OURCA IGA Parties' retail electricity revenues. The Board will update the application of the Cost Allocation Methodology upon the entry or exit of any Party from the OURCA IGA or at least annually. The initial Cost Allocation Methodology, and the resulting percentage allocated to each Party, is attached as Exhibit A. - 4 - 2.4.3 Employment of Staff or Consultants. Except as provided in Sections 2.4.2 and 2.4.4, the employment of staff or consultants, including the hiring and terminating of any staff, employees or consultants, shall require the authorization of the Board pursuant to the following two voting mechanisms: (1) A majority vote of the Board; and(2) A majority vote of the Board, with each Board representative's vote equal to the percentage allocated to each Party as specified in the Cost Allocation Methodology attached in Exhibit A. Each Party's apportioned share of employment related expenses shall be determined in accordance with the Cost Allocation Methodology. The Board may delegate the employment of staff or consultants, including the hiring and terminating of any staff, employees or consultants, to another person or persons, upon a majority vote of the Board, with each Board representative's vote equal to the percentage allocated to each Party as specified in the Cost Allocation Methodology attached as Exhibit A. 2.4.4 Procurement of Goods and Services and the Issuance or Sale of Bonds, Securities or Other Forms of Indebtedness. Except as provided in Sections 2.4.2 and 2.4.3; the procurement of goods and services, including but not limited to the purchase of generation facilities and power supply contracts, and the issuance or sale of bonds, securities or other forms of indebtedness, including but not limited to the issuance of revenue bonds under ORS 288.805 to ORS 288.945, requires the affirmative authorization of each individual Party to be bound, such authorization to be expressed by resolution, ordinance or other binding commitment of the Party's governing body. Parties not affirmatively authorizing such actions shall in no instances be liable. The procurement of goods and services be performed by resolution or separate agreement which specifies (1) the apportionment of fees, costs, or revenue derived from the functions and activities; and (2) the manner in which such revenue shall be accounted for. Such resolution or separate agreement may or may not involve the participation of the OURCA IGA, however, such participation of the OURCA IGA shall not create liability for a Party that has not affirmatively authorized such action. 2.4.5 Voting By Proxy. Any Board representative may vote by proxy, provided that the proxy power is granted to the proxy voter in writing and the effective proxy period is specified. 2.4.6 Voting In Absentia. Any Board representative may vote in absentia by telephone or in writing, including by facsimile. Any written vote in absentia must be received prior to the meeting at which the vote is to occur and must be signed by the Board representative. 2.5 New Parties. The Board may authorize a new Party to join the OURCA IGA if approved by 2/3 vote of the Board. 2.6 Insurance. The OURCA IGA shall provide for adequate insurance to cover the directors, officers, employees, staff, agents and activities undertaken by the OURCA IGA. 2.7 Conflicts. The OURCA IGA shall not take an advocacy position in administrative or legal proceedings which position conflicts with the position taken by any individual Party. Parties shall notify the OURCA IGA of any such potential conflict. - 5 - ARTICLE III TERM AND TERMINATION 3.1 Term. Except as expressly provided, the term of this Agreement shall be perpetual, unless by a unanimous vote the Board acts to dissolve the OURCA IGA. 3.1.1 Dissolution. Upon dissolution, each Party to the OURCA IGA on the date of dissolution shall remain liable solely for its individual share of any OURCA IGA expenditure that has been specifically incurred by the Party in accordance with the terms of this Agreement or by other resolutions or separate agreements of the Party. Upon dissolution, the assets of the OURCA IGA shall be distributed to the members on the basis of the rights and obligations of each Party to the assets held as of the date of the dissolution. 3.2 Voluntary Withdrawal by a Party. Any Party may elect to terminate their participation in this Agreement and withdraw from the OURCA IGA by giving written notice to the President and each member of the OURCA IGA. Withdrawal shall be effective forty-five (45) days from the date of notice. The withdrawing Party shall continue to pay its apportioned share of or be responsible for, any debt attributable to that Party incurred prior to the Party's written notice of withdrawal, and shall hold harmless the remaining Parties and the OURCA IGA for those financial responsibilities and obligations attributable solely to the withdrawing Party. 3.3 Involuntary Withdrawal of a Party. By a 2/3 vote of the Board, any Party may be requested to withdraw from the OURCA IGA and relinquish their powers and duties under this Agreement. The President of the OURCA IGA shall notify such Party by written notice addressed to that Party. Unless as otherwise agreed by a 2/3 vote of the Board, termination of the Party is effective forty-five (45) days from the date of notice. The withdrawing Party shall continue to pay its apportioned share of, or be responsible for, any previously incurred debt pursuant to Sections 2.4.2 and 2.4.3 that is attributable to that Party as of the effective date of the withdrawal, and shall hold harmless the remaining Parties for those financial responsibilities and obligations attributable solely to the withdrawing Party. ARTICLE IV DISPUTE RESOLUTION 4.1 Dispute Resolution. If a dispute arises between the Parties or between the OURCA IGA and the Parties regarding breach of this Agreement or interpretation of any term of this Agreement, the Parties shall first attempt to resolve the dispute by negotiation, followed by binding arbitration if negotiation fails to resolve the dispute. 4.1.1 Negotiation. The Board Member or other persons designated by each of the disputing Parties will negotiate on behalf of the Parties they represent. The nature of the dispute shall be reduced to writing and shall be presented to each of the disputing Parties who shall then meet and attempt to resolve the issue. If the dispute is resolved at this step, there shall be a - 6 - written determination of such resolution, signed by each disputing Party and ratified by the . OURCA IGA which shall be binding upon the Parties. 4.1.2 Binding Arbitration. If the dispute cannot be resolved by negotiation within forty-five (45) days, the parties shall submit the matter to binding arbitration. The Parties shall attempt to agree on an arbitrator. If they cannot agree upon an arbitrator within ten (10) days, the Parties shall submit the matter of determining an arbitrator to the Presiding Judge of the Marion County Circuit Court. The common costs of the arbitration shall be borne equally by the Parties. Each Party must bear its individual costs and fees. ARTICLE V AMENDMENT 5.1 This Agreement, other than Sections 1.7, 2.4, 2.5, 3.2, 3.3, and 5.1 may be amended upon a majority vote of the Board and shall be prepared by mutual written agreement of the Parties, signed by all of the Parties. Sections 1.7, 2.4, 2.5, 3.2, 3.3, and 5.1 of this Agreement may be amended only upon the affirmative authorization of each Party. ARTICLE VI GENERAL PROVISIONS 6.1 Merger. This Agreement embodies the entire agreement and understanding between the Parties relating to the formation of the OURCA IGA hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. 6.2 Severability. In case any one or more of the provisions contained in this Agreement should be invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 6.3 Notice. Any notice herein required or permitted to be given shall be given in writing, shall be effective when actually received, and may be given by hand delivery or by certified mail, first class postage prepaid, addressed to the Parties as follows: General Manager General Manager City of Ashland Clatskanie People's Utility District Department of Electric Utilities P. O. Box 216 City Hall Clatskanie, OR 97016 20 East Main Ashland, OR 97520 General Manager General Manager Columbia River People's Emerald People's Utility District Utility District 33733 Seavey Loop Road P. O. Box 1193 Eugene, OR 97405 - 7 - St. Helens, OR 97051 General Manager General Manager Eugene Water&Electric Board Forest Grove Light & Power 500 East Fourth Avenue Box 326 Eugene, OR 97440 Forest Grove, OR 97116 General Manager General Manager McMinnville Water&Light Northern Wasco People's 855 Marsh Lane Utility District McMinnville, OR 97128 P. O. Box 621 The Dalles, OR 97058 General Manager Tillamook People's Utility District P. O. Box 433 Tillamook, OR 97141 6.4 Counterparts. This Agreement may be executed in any number of counterparts and by the parties on separate counterparts, any one of which shall constitute an agreement between and among the Parties. IN WITNESS WHEREOF, the Parties have executed this Agreement by the date set forth opposite their names below. Date: Pete Lovrovich, General Manager City of Ashland Department of Electric Utilities Date: Greg Booth, General Manager Clatskanie People's Utility District Date: Fergus Pilon, General Manager Columbia River People's Utility District Date: Jeff Shields, General Manager Emerald People's Utility District - 8 - Date: Randy Berggren, General Manager Eugene Water& Electric Board Date: Dave Bouchard, General Manager Forest Grove Light&Power Date: Edward J. Gormley, Mayor and Ex-Officio Member of the McMinnville Water& Light Commission STATE OF OREGON ) ) ss. County of ) Personally appeared before me the above-named Edward J. Gormley and acknowledges the foregoing instrument to be his voluntary act and deed. SUBSCRIBED AND SWORN to before me this_day of , 1999. Notary Public for the State of Oregon Residing at My Commission Expires: Date: Dwight Langer, General Manager Northern Wasco People's Utility District Date: Patrick Ashby, General Manager Tillamook People's Utility District - 9 - Council Communication Department of Community Development Planning Division RR Property Zone Change July 20, 1999 Submitted by: John McLaughlin Approved by: Mike Freeman Title: An Ordinance Amending the Comprehensive Plan Map, Zoning Map, and the Detail Site Review Zone Map for the Property North of the Railroad Tracks Between Oak Street and North Mountain Avenue. Synopsis: In April, 1999, the City Council directed the Planning Staff to initiate a re-zoning of the railroad property north of A Street. A public hearing was held in front of the Planning Commission on June 8, 1999 at which time a staff report was presented (attached) and testimony taken. The Planning Commission approved the request as submitted by Staff. The Planning Commission will be adopting findings supporting their decision at their July 13, 1999 meeting. Under the Procedures Chapter of the Ashland Land Use Ordinance, the Planning Commission is the final decision maker on quasi-judicial comprehensive plan map and zone changes such as this. However, since the maps are adopted by ordinance, amendments to them must also be made by ordinance, which is a Council action. Recommendation: Staff recommends that the Council adopt the attached ordinance amending the Comprehensive Plan Map, Zoning Map, and the Detail Site Review Zone Map. Since this is the subject of a land use decision for which a public hearing has already been held, no additional public testimony need be taken on this matter. Background Information: The attached staff report provides a review of the background for this project. ORDINANCE NO. AN ORDINANCE AMENDING THE COMPREHENSIVE PLAN MAP, ZONING MAP, AND THE DETAIL SITE REVIEW ZONE MAP FOR THE PROPERTY NORTH OF THE RAILROAD TRACKS BETWEEN OAK STREET AND NORTH MOUNTAIN AVENUE. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. The Comprehensive Plan Map of the City of Ashland is amended from Industrial to Employment and the Zoning Map of the City of Ashland is amended from M-1 to E-1 with a Residential Overlay for the area indicated on attached Exhibit "A". SECTION 2. The Detail Site Review Zone map is amended to include the area indicated on attached Exhibit "B". The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of 11999, and duly PASSED and ADOPTED this _day of 11999. Barbara Christensen, City Recorder SIGNED and APPROVED this _ day of , 1999. Catherine M. Shaw, Mayor A roved as to rm: N Paul Nolte, City Attorney Page 1 Exhibit "An I jS Industrial to Employment z M-1 to E-1,Residential Overlay lJ _ � ... ... EF-D-7Zf- E7. �� / A I Exhibit "BE A, aj., WAY 4 IN 11 Added to Detail Site Review Zone ,� A T ;ilk ASHLAND PLANNING DEPARTMENT STAFF REPORT June 8, 1999 PLANNING ACTION: 99-066 APPLICANT: City of Ashland LOCATION: Approximately 22 acres north of the railroad tracks, east of Oak Street, west of North Mountain Avenue. ZONE DESIGNATION: M-1 COMPREHENSIVE PLAN DESIGNATION: Industrial ORDINANCE REFERENCE: 18.108.060 Type III Procedures REQUEST: Zone change from M-1 to E-1 with a residential overlay and Comprehensive Plan Map amendment from Industrial to Employment. Request also involves amending Chapter 18.72.050 of the Municipal Code pertaining to Site Design and Use Standards to include these properties in the Detail Site Review Zone. I. Relevant Facts 1) Background - History of Application: This action was initiated by motion of the City Council on April 6, 1999. A copy of the memo from the Planning Director to the Council is included as part of this packet. 2) Detailed Description of the Site: The site encompasses one of the last large parcels of vacant land in close proximity to the downtown. This area has historically served the railroad, and during the height of train usage, the area contained several large structures, including a roundhouse, serving the many locomotives that traveled the Siskiyou Pass daily. The site is relatively flat, by Ashland standards, and the vacant portions contain few remnants of its railroad past. Adjacent to the vacant railroad property, abutting Oak Street on the western edge of the property is a separate parcel owned by Ashland Lumber. It is also zoned M-1 and we propose rezoning this property as well to E-1. Another parcel, adjacent to Hersey Street and Darex, and already zoned E-1, which is also primarily comprised of a wetland, is also proposed to be included in the Detail Site Review Zone. 3. Description of Proposals There are several different facets to this request: First: Rezone of the property north of the railroad tracks that is currently zoned M-1 to E-1, and a concurrent change in Comprehensive Plan Designation for the same property from Industrial to Employment. Second: Amend the boundary of the Detail Site Review zone to include all of the property proposed for rezoning, as well as tax lot 1900. Third: Amend the Residential-Overlay boundary to include all of the property proposed for rezoning. II. Project Impact The project impact will be addressed on the basis of the three facets of the proposal. A. Rezone from M-1 to E-1, Comprehensive Plan Map change from Industrial to Employment. In the 1966 Comprehensive Plan, this area of the community was identified as "Heavy Commercial", a classification defined as a"heavy commercial, wholesale and distributive area intended to provide for development of bakery, bottling and cleaning plants, cabinet, machine, plumbing and printing shops and warehousing and wholesale business." In the 1978 Comprehensive Plan, the area was identified for"Industrial' uses, and zoned M-1. This area was identified for heavier industrial development due to its proximity to the tracks and the fact that it was essentially vacant. The area zoned for industrial use included all of the land between the railroad tracks and Hersey Ashland Planning Department Staff Report Planning Action 99-066 Applicant: City of Ashland Date: June 8, 1999 Page 2 Street. In the 1981 Comprehensive Plan, a new land use classification was developed— Employment (E-1). This zoning allowed for a combination of uses, ranging from commercial to heavy commercial to uses normally seen in industrial zones. The wide variety provided maximum flexibility for a changing economy, as Ashland evolved from a timber community. In this area, the lands adjacent and just south of Hersey Street were rezoned to E-1, while the remainder, generally referred to as the Railroad property, remained in an M-1 zoning. The E-1 zoning has allowed for the development of Darex, the Hersey Business Park, new medical offices along Williamson Way, and recently the development of a retail furniture store at the intersection of Oak and Hersey. This evolution in land uses provides the impetus for the change in zoning for the remainder of the property. From the current Economic Element of the Comprehensive Plan comes the following: "Establishment of light manufacturingfirms with high value-added components should be especially encouraged...knowledge intensive manufacturing such as computer software and medical specialty businesses...educational facilities and professional services are other types of businesses that could be expected to locate and flourish in Ashland. " Given the recent types of commercial and light industrial development that have occurred in Ashland over the last several years, the demand is clearly stronger for E-1 land than for heavy industrial M-1 land. In fact, over the last 10 years, the only use that has requested M-1 land has been the relocation of Oak Street Tank and Steel out to Washington Street near the freeway. Further, as "A" Street and the Railroad District has developed and redeveloped, it has provided a possible template for the future of economic development in Ashland—mixed use development. And as recognized in the Transportation Element of the Comprehensive Plan: "Few areas exist with 'mixed uses'in which a blend of residences, offices, and retail services is available. Separation of uses through single-use zoning has resulted in residents'need to drive longer distances to work or for services. Compatible mixed-use zoning would provide services in residential areas and offer housing in commercial areas. These mixed uses would reduce both the number and length of trips for goods and services." , Ashland Planning Department Staff Report Planning Action 99-066 Applicant: City of Ashland Date: June 8, 1999 Page 3 Policy: Provide zoning that allows for a mix of land uses and traditional neighborhood development which promotes walking and bicycling. Within the City's existing land use classifications, only the Employment zone allows for the opportunities for the widest range of uses, with the possibility of including housing in the mix. Further, as development of the adjacent areas has occurred in compliance with the comprehensive plan, it has become more apparent that industrial development is likely incompatible with the adjoining residential uses, either along Williamson Way or North Mountain. Regarding the City's inventories, as part of the Buildable Lands project, we have also examined the utilization of E-1 and M-1 lands currently vacant within the City. From 1990-1998, approximately 35 acres of E-1 land was developed for new uses, while only 1 acre of M-1 land was used. Further, during this time, Croman Corporation has effectively ended their operation in Ashland, leaving a large area(greater than 70 acres) essentially vacant for M-1 purposes, although the Commission may see a similar request to rezone that area as well based on market demand. Realistically, Ashland's economy has evolved to where it is unlikely the City will see any new large industrial users locate here. Within the region, we must also compete with White City, Grants Pass, and Medford for larger industrial developments, and honestly, we do not compete well. Land costs, nearby residential uses, and general community values are not"open arms" for many large industries. In fact, from the Economic Element, comes the following: "The City is clearly unsuitable for the following types of businesses: a) Businesses which use large amounts of water, especially when Ashland's water needs peak. b) Businesses that emit significant amounts of air pollution c) Businesses that create toxic wastes that require specific disposal techniques not available locally" From these quotes of the comprehensive plan, it is clear that the Employment land use classification is the most appropriate classification for a large parcel of land near a national register historic district and within walking distance of the downtown core. Further, from our inventories, it is clear that demands are greatest for E-1 lands as opposed to M-1, and that in the long run, there will be a greater need for vacant E-1 lands. Ashland Planning Department Staff Report Planning Action 99-066 Applicant: City of Ashland Date: June 8, 1999 Page 4 B. Inclusion of the area proposed for rezone, and tax lot 1900, in the Detail Site Review Zone. As this area is proposed for rezoning from the land use classification with the least restrictions on design (M-1) to E-1, it is staffs opinion that higher standards for site design need to be included. As stated above, this area has the potential to provide for a wide range of uses, similar to those seen along "A" Street(which is currently in the Detail Site Review zone). To a lesser degree, development could also follow the designs seen along Hersey Street and Williamson Way. In both instances, high quality new development has occurred, with significant investments by the developers. To ensure that those investments are protected and to provide for development of a high standard valued by the community, we would recommend that the entire area be included in the Detail Site Review zone. As the area develops, the Transportation Plan calls for a connecting street running parallel to the railroad tracks between Mountain and Oak. The development standards along this street will set the stage for the style of ultimate construction—mixed use, appropriate scale, etc... The goal of the Economic Element is as follows: "To ensure that the local economy increases in its health, and diversifies in the number, type and size of businesses consistent with the local social needs, public service capabilities and the retention of high quality environment." (underline added) While the rezoning from M-1 to E-1 addresses many parts of the goal, the change to include this area in the Detail Site Review zone ensures the retention of a high quality environment. C. Amend the Residential-Overlay boundary to include all of the property proposed for rezoning. The option of allowing for residential uses subservient to the primary commercial use on property has been tremendously successful within Ashland. "A" Street provides the closest example of upstairs apartments over downstairs commercial uses, although the mixed use pattern is found elsewhere. It is even seen on Williamson Way, where studio apartments are located above a plumbing contractors business location. In looking at the future for this area, it is Staff s opinion that the greatest variety in uses be allowed, and the opportunity for residential as a secondary use to commercial uses may provide not only affordable housing opportunities, but perhaps the difference between a successful Ashland Planning Department Staff Report Planning Action 99-066 Applicant: City of Ashland Date: June 8, 1999 Page 5 development and a marginal one. It has been seen in Ashland that the demand for housing can help "carry" a commercial building during down times, and allowing for the option can only be seen as a positive influence. Further, the opportunity to live and work in the same location, or at least only take a short stroll to you place of employment is a benefit to the city's overall transportation needs. The idea of mixed use is supported throughout the Comprehensive Plan, as stated earlier in the Transportation Element, but also in the Economic Element: "The City shall design the Land Use Ordinance to provide for: Commercial or employment zones where business and residential uses are mixed. This is especially appropriate as buffers between residential and employment or commercial areas and in the Downtown. " As the Commission is aware, this policy has been very successful in the downtown area, creating a 24-hour neighborhood. This is opposed to a business park development where there is no activity after 5pm. The benefits are not only transportation related, or affordable housing, but also include business safety and property management. Again, given the location that is within walking distance of the downtown, many potential employers, and a variety of services,the benefits of mixing housing with potential new commercial development are many. M. Procedural- Required Burden of Proof From section 18.108.060 regarding Type III procedures: Zone changes, zoning map amendments and comprehensive plan map changes subject to the Type III procedure as described in subsection A of this section may be approved if in compliance with the comprehensive plan and one of the following conditions exist: a. a public need, supported by the comprehensive plan b. the need to correct mistakes C. the need to adjust to new conditions d. where circumstances relating to the general public welfare require such an action. As indicated in the previous sections, there are numerous policies and statements within the Comprehensive Plan to support the public need for additional E-I zoned land, as well Ashland Planning Department Staff Report Planning Action 99-066 Applicant: City of Ashland Date: June 8, 1999 Page 6 as the need for enhanced site design standards and the options for mixed uses. Further, it must also be recognized that Ashland is much changed since the zoning for this area was first adopted in the 1960's, then amended in the 1970's and 1980's. Our economy has diversified to a variety of medical, tourist, manufacturing and retailing uses, and the need for a zoning classification that accepts a wide variety of uses is now necessary. IV. Conclusions and Recommendations Staff recommends approval of the zone change from M-1 to E-1, and the concurrent comprehensive plan map change from Industrial to Employment. Further we recommend amendment of the Detail Site Review zone to include the rezoned property, as well as the adjacent parcel 1900 which is already E-1 zoned. And finally, we recommend that the entire area have a residential overlay to allow for the options for mixed use development, strongly encouraged throughout the comprehensive plan. Ashland Planning Department Staff Report Planning Action 99-066 Applicant: City of Ashland Date: June 8, 1999 Page 7