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Home My WebLink About2007-0206 Council Mtg PACKET CITY OF ASHLAND Important:..Any citizen attending council meetings may speak on any item on the agenda, unless it isJhe subjectof a,putlic hearing,which has been'closed. The Public Forum is the time to speak on any subject not' on.the printed agenda. If you wish to speak, please fill out the Speaker Request form located near the entrance to the:Council Chambers: The chair will recognize you and inform,you as to the amount of.; bme'4iI6tted.to you.. The time granted will be dependent to some extent on the nature of the item under dis,cussion,.the number of people who wish to be heard,'and the length of the'agenda: AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL February 6, 2007 Civic Center Council Chambers 1175 E. Main Street 7:00 p.m. Regular Meeting I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENT OF BOARD AND COMMISSION VACANCIES V. APPROVAL OF MINUTES [5 minutes] 1. Executive Session meeting minutes of January 16, 2007 2. Regular Council meeting minutes of January 16, 2007 VI. SPECIAL PRESENTATIONS & AWARDS None. VII. CONSENT AGENDA [5 minutes] elAl Minutes of Boards, Commissions, and Committees Confirmation of Appointment of the Police Chief Approval of Public Contract for a Term Exceeding Two Years — Multifunction Business Machine Lease 4. Council Liaisons 2007 Appointment of Judge Pro Tern Approval of a Common Boundary Line Termination of Easement at 829 North Main Street Acceptance of a Public Utility Easement at 150 Lithia Way Internet Bandwidth Contract Approval 10. Mid-Year Financial Report: July- December 2006 11.Approval of Public Contract for Transformer Disposal Services Acceptance of Deed of Dedication 13. Approval for Ashland to Continue in Lawsuit COUNCIL JMEETINGS ARE BROADCAST LIVE ON CIIANNEL 9 VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US VIII. PUBLIC HEARINGS (Testimony limited to 5 minutes per speaker, unless it is the subject of a Land Use Appeal. All hearings must conclude by 9:00 p.m., be continued to a subsequent meeting, or be extended to 9:30 p.m. by a two-thirds vote of council (AMC §2.04.040)) 1. Request for Approval of Fee and Policy Recommendations [30 Minutes] IX. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. Speakers are limited to 5 minutes or less, depending on the number of individuals wishing to speak.) [15 minutes maximum] X. UNFINISHED BUSINESS 1. Approval of City Charter Ballot Measure [15 Minutes] 2. Discussion of Transient Occupancy Tax Use [30 Minutes] 3. Discussion of Interim Library Funding Options[15 Minutes] 4. Discussion of Annual Budget Process and Calendar[30 Minutes] XI. NEW AND MISCELLANEOUS BUSINESS 1. Federal Appropriations[5 Minutes] 2. Ashland Fiber Network Five-Year Business Plan [30 Minutes] XII. O I NCE RESOLUTIONS AND CONTRACTS irst Readina di aaL rR pled "A Resolution of the City of Ashland Authorizing nm Bond Financing Loan From the Special Public Works Fund By Entering into a Loan Contract with the Oregon Economic and Community Development Department for the Jefferson and Washington Street Improvements Project Number B06003" 2. First Reading by title only an Ordinance ' ed "An Ordinance Amending AMC 3.08.020 To Apply Ethic rov mployees, Appointed Officials and Elected Officials" XIII. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS XIV. ADJOURNMENT In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at(541) 488-6002(TTY phone number 1-800-735- 2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). COUNCIL MEETINGS ARE BROADCASTLIVE.ON CHANNEL. 9 VISIT THE CITY OF ASI,ILAND'S WEB SITE AT WWW.ASHLAND.OR.US ASHLAND CITY COUNCIL MEETING JANUARY I6, 2007 PAGE I of 8 MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL January 16,2007 Civic Center Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Morrison called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers. ROLL CALL Councilors Hardesty,Navickas, Hartzell, Jackson, Silbiger, and Chapman were present. MAYOR'S ANNOUNCEMENT OF BOARD AND COMMISSION VACANCIES Mayor Morrison announced vacancies on the Airport and Public Arts Commissions.The City is also seeking a SOU Student Liaison to the Forest Lands Commission. Mayor Morrison noted the appellant has withdrawn their land use appeal of Planning Action 2006-00612 and the public hearing removed from tonight's agenda. APPROVAL OF MINUTES The Regular Council meeting minutes of January 2, 2007 and amended Executive Session minutes of December 19,2006 were approved as presented. ELECTION OF COUNCIL PRESIDENT Councilor Hartzell/Chapman nominated Councilor Silbiger as Council President for the year 2007. Voice Vote: all AYES. SPECIAL PRESENTATIONS &AWARDS(None) CONSENT AGENDA 1. Minutes of Boards,Commissions,and Committees. 2. Appointments to Housing Commission. . 3. Approval of ODOT Agreement No.23840 for a Bicycle and Pedestrian Crossing at E.Main Street. 4. Appointment to Street Financing Task Force. Councilor Jackson/Chapman m/s to approve the Consent Agenda. Voice Vote: all AYES. Motion passed. PUBLIC HEARINGS 1. An Appeal of Planning Action 2006-00612 —Request for Site Review approval for a mixed-use development compromised of general office space and six residential condominiums for the property located at 160 Helman St. A Tree Removal Permit is requested to remove two trees on site that are sized six inches diameter at breast height and greater. Appeal was withdrawn. PUBLIC FORUM Ambuja Rosen/Commented on the tethering ordinance public hearing that was held at the last Council meeting. She stated twelve of the seventeen people who spoke or submitted comments opposing the tethering law were from out of town, and all twelve had some connection to the dog breeding industry. Ms. Rosen ASHLAND CITY COUNCIL MEETING JANUARY 16, 2007 PAGE 2 of 8 claimed breeders from as far as Eugene traveled to Ashland to oppose the law because they feared this type of legislation would spread to their communities. She stated that in general,animals are not family members to these individuals, but are viewed as merchandise. Ms. Rosen shared her suspicion that the Southern Oregon Kennel Club organized much of the opposition that was heard by Council and noted the thousands of signatures she has gathered from Ashland residents supporting this ordinance. Ms. Rosen requested the Council not only restrict the tethering of dogs, but other animals as well; and asked the Council to consider what the people of Ashland want. UNFINISHED BUSINESS 1. A Request for authorization to proceed with a land use application involving approximately 1.37 acres of City-owned land included in the Dog Park. Senior Planner Bill Molnar presented the staff report and explained the property owners have tentatively made a land use application for a residential development at the current location of the Ashland Greenhouse property. Mr. Molnar stated part of the land use proposal involves an exchange of approximately 1.5 acres of City owned property leading to the City dog park, for roughly 2.5 acres of the property owner's private property. Because the application involves City property, the applicant must obtain authorization from the Council in order to proceed with this land use action. Mr. Molnar clarified this request does not involve a land use decision and stated this would be a separate action that comes before the Planning Commission and the City Council. He added the property exchange would also require a separate public hearing held at a later date to evaluate the merits of the transaction. Mr. Molnar stated the Parks&Recreation Commission have reviewed this proposal and voted to support, in principle,the request to move ahead with the land use application. Staff recommends approval of the request and Mr. Molnar noted the suggested motion listed in the staff memo. Comment was made questioning if this action could potentially weaken the burden for annexation by surrounding the property with City land. Mr. Molnar gave his opinion that it would not weaken the burden because the timing of the land swap could be structured so there is no official change to the property prior to the land use decision being made. Mr. Molnar noted the Comprehensive Plan designation of the land is single-family residential and clarified the land is currently outside the City limits, but within the Urban Growth Boundary. Chris Hearn/515 East Main Street/Representing the applicants Valerie and Greg Williams. Mr. Hearn stated this is an opportunity to achieve something that the Parks Department has been trying to do for some time. He displayed the Parks and Trails Open Space Plan, which was adopted by the Council in 2002, and explained it is essentially a wish list of parcels the City wishes to acquire. Mr. Hearn stated the Williams' property that is the subject of the possible land swap is on this list. He explained with the acquisition of this parcel by the City,the bike path could be redirected to follow the creek and the applicants would pay for this. Mr. Hearn noted the City's current property that provides access to the dog park is burdened with the demand that it be used for recreational purposes. He stated an appraiser would likely consider this restriction and it could diminish its fair market value.Mr.Hearn submitted charts depicting the land exchange comparison and stated this is a win-win situation. Alex Forrester/545 A Street/Applicant's agent and planning consultant. Mr. Forrester agreed that this is a win-win situation and stated it would allow the development of the area to proceed in a more coherent and practical way. Mr.Hearn emphasized approval of the applicant's request in no way obligates the City to any future course of action; it just allows the applicant to come forward with their land use proposal. ASHLAND CITY COUNCIL MEETING JANUARY I6, 2007 PAGE 3 of 8 Mr. Heam clarified that he had spoken with the Assistant City Attorney and it is likely that the recreational purpose requirement would remain with the land even after an exchange.He also provided further explanation of the maps that were handed out and commented that the Parks& Trails Committee specifically made the wish list somewhat amorphous. Mr.Forrester provided further explanation of the property that would go to the City,and clarified the property line for the riparian area was derived from the new draft ordinance which requires 65 ft.from the centerline of the creek and has an additional 10 ft. setback added. Mr. Forrester explained that they had proposed to the Parks & Recreation Commission the possibility of moving the bike path to follow the creek, instead of continuing the way it does not along the City's sewer treatment plant. He stated the applicant's are willing to provide the path in whichever direction the Parks and Recreation Commission and the Council want. Colin Swales/461 AllisonNoiced his surprise that this action has gotten to this stage and stated it seems like the"cart is before the horse". Mr. Swales stated it is essential that this issue be handled correctly since the applicant is an ex-city councilor and is being represented by another ex-city councilor. He stated the City's portion of property is very important and suggested the City consider the use of easements along the riparian property.He also stated he does not believe the recreational purpose requirement would diminish the value of the land, since the subdivision would likely be requirement to provide open space for the residents and this land could be used for that purpose.Mr. Swales stated the value of the City's land has greatly increased since it was first purchased and questioned if the recreational use requirement could be removed if the City repaid the grant. He commented that the applicant should not have to go through this process without knowing if the City will approve the land swap and requested the Council delay this issue until there is a full disclosure on the appraised values of the properties and other creative options have been considered. Art Bullock/Stated the two reasons to approve this action are: 1)it makes sense from a development point of view because it allows for flexibility in terms of the layout of streets, and 2)the bike path could be moved closer to the creek and have a better crossing at Nevada Street, which would be safer than what currently exists. Mr. Bullock stated there are also reasons to not proceed, including: 1)the land has not been appraised yet, 2)the City may be in violation of the Federal grant requirements if they approve the use of this land for something other than what was agreed to with the Federal Government,and 3)the chances are very low that both the land swap and planning application process can be completed within the 120-day timeline. Mr. Bullock urged the Council to not approve the applicant's request until these three issues have been resolved. Councilor Hartzell questioned if Council discussion regarding the land swap could have an impact on their ability to hear a possible appeal of the land use application. City Attorney Mike Franell stated it would not have an impact to hear an appeal since these are two separate issues and each has their own criteria that must be met. However, he suggested the Council try to avoid getting into the merits of the land use action during their discussions of the land swap. Regarding the 120-day rule, Mr. Franell clarified that if all the property for which the development is being applied for is within the current city limits, then the 120-day rule applies. However if the development application is dependent upon approval of an annexation, as with this case, then the 120-day rule is not applicable to that portion of the project. Mr. Franell encouraged the Council to keep in mind that this is two separate applications. He stated the land use decision can be made without making a decision on the land swap.He stated it would be prudent to have the decision made on the land swap prior to final decision on the land use application, but because they are two separate issues,a favorable decision made for one will not bind the Council in making a similar decision for the other. ASHLAND CITY COUNCIL MEETING JANUARY 16, 2007 PAGE d of 8 Assistant Attorney Richard Appicello clarified the Federal Government would have to approve the conversion. He stated if this process is not completed by the time the Council is ready to make an exchange, they could either postpone the decision or approve with a condition contingent upon the Federal Government's approval. Mr. Appicello stated he does not believe there is a way to remove the recreational use burden from the property;however, staff will explore this further. He also clarified the majority of the applicant's property is outside the city limits and is contingent on annexation;therefore staff is not extremely concerned with the 120- day rule. Councilor Navickas/Hartzell m/s to not move forward with allowing this application to proceed. DISCUSSION: Councilor Navickas stated he wants to be clear with the developer that what they have proposed is not a fair exchange.He stated the City could have easements through their property for bike lanes regardless of whether the City owns the property. He stated he is willing to work with the development to discuss a repartitioning of the property,but does not see why the City should give up 1.37 acres of usable park land.Councilors Silbiger,Jackson and Chapman voiced support for moving forward with obtaining appraisals so that an informed decision can be made.Councilor Hartzell voiced support for discussing the merits of the land swap prior to the land use application being brought forward. Roll Call Vote: Councilor Navickas, YES. Councilor Chapman,Silbiger,Hardesty,Jackson and Hartzell,NO.Motion failed 5-1. Councilor Hartzell/Hardesty m/s for City staff to be directed to investigate and provide a recommendation on the proposed land use exchange and properly notice and conduct a public hearing on a potential land swap. DISCUSSION: Councilor Hartzell clarified her desire to handle the land swap portion separately from the land use application,with the land swap first.Councilor Hardesty voiced support for the motion. Councilor Chapman stated the applicants are well aware of the risks and if they wish to make the application concurrently,this is fine with him.Councilor Silbiger agreed with Chapman.Councilor Hartzell gave her opinion that it would be cleaner if done separately. Councilor Jackson/Chapman m/s to amend motion to authorize the land use application to proceed. DISCUSSION: Councilor Hartzell voiced her objection to the motion. She stated handling these separately would be cleaner and could potentially add value to the City's property.Councilor Jackson stated it does not make sense to have the land swap investigation if they are not talking about this particular proposal.Councilor Navickas voiced his opposition to the City giving up public land to a private developer. Roll Call Vote on Amendment: Councilor Navickas, Hartzell and Hardesty, NO. Councilor Chapman, Silbiger and Jackson,YES. Mayor Morrison,YES. Motion passed 4-3. Roll Call Vote on Amended Motion: Councilor Navickas and Hartzell, NO. Councilor Chapman, Silbiger,Jackson and Hardesty,YES. Motion passed 4-2. 2. Discussion of City Charter. Management Analyst Ann Seltzer presented the staff report and explained the Council is being asked to review the draft language to be placed on the May ballot. She noted the ORS requirements for the ballot measure language are included in the packet materials and requested the Council review the draft language and determine it if accurately reflects what is being put forward.Ms. Seltzer noted there are two measures,the first asks whether the City should adopt a new charter and the second asks whether Ashland should change to a council/manager form of government. Ms.Seltzer clarified the ballot language will be placed on the ballot itself,and the voters pamphlet will contain the entire text of the revised charter, plus an optional explanatory statement. ASHLAND CITY COUNCIL MEETING JANUARY 96, 2007 PAGE 5 of 8 City Attorney Mike Franell explained the current charter is not illegal,but there are provisions in the charter that have been superseded by state law.Councilor Hartzell voiced concern with the wording of the first ballot question and stated it could be misleading to the voters. Suggestion was made for the first question be revised to read,"Shall the City of Ashland adopt the revised new charter."Support was voiced for using this wording. Councilor Hartzell questioned if the City Attorney could come up with more descriptive language for the question of the first ballot measure.Mr.Franell suggested it could read,"Shall Ashland adopt a revised charter to remove outdated and obsolete provisions, and eliminate specific dollar references." . Ms.Seltzer noted that an explanatory statement could be included which would give further detail. She stated this statement could be up to 500 words in length and the content would likely be taken from the Charter Review Committee's executive report. Mr. Franell reminded the Council that all statements need to remain neutral in order to not violate the elections law. Councilor Silbiger offered a suggestion for the wording of the first ballot question.City Administrator Martha Bennett noted the wording must be limited to 20 words, and suggested they use "Shall Ashland adopted a revised charter modernizing language and removing outdated section that have been superseded by state law." Support was voiced for using this revision. Mayor Morrison questioned if the Council had any changes to the ballot language for the city manager item. Comment was made questioning if the current charter could be amended to have a city manager form of government if the new charter does not pass. Mr. Franell clarified they could have three separate measures instead of two.The first would ask whether Ashland should change to a council/manager form of government, the second would ask whether Ashland should change to a council/manager form of government if the revised charter is not approved,and the third would ask whether the City should adopt a revised charter. Mr. Franell clarified he would check on whether it is possible to ask if the City should change to a city manager form of government and then have alternatives depending on which charter we are actually amending. Ms. Seltzer clarified the ballot language needs to be finalized by March 8`h and submitted to Jackson County by March 15`h. She noted this is scheduled to come back to the Council on February 6, 2007. Pam Vavra/2800 Dead Indian Memorial Road/Stated the City Manager amendment as it is written puts voters in a dilemma in that they must vote for the charter to get the city manager form of government,however adding the third amendment as mentioned by the City Attorney would solve this. Ms. Vavra recommended that the Council also include an ethics provision, instant runoff voting,and the top three voting system. Art Bullock/Does not agree with the term "modernized" and stated it is not a neutral word. Mr. Bullock voiced his concern regarding the ballot language proposed by staff and stated the revised charter would shift power from citizens and the Council to staff.He suggested that the ballot measure language include the items that are most important to voters. He also asked the Council to consider the issue of the water language and stated this part of the process has not been finalized. Councilor Hardesty voiced her disappointment that instant runoff voting and the top three method of voting were not included in the revised charter. Ms. Seltzer commented that there is a slight disadvantage to the newer councilors because there has been so much discussion and work done over the last few years.She explained the Council has held many discussions on the Charter Review Committee's report and decided which recommendations they would move forward with.Ms. Seltzer stated the Charter Review Committee did not recommend instant runoff voting because they had concerns about budget and the expense it would cost the City. She added there is nothing restricting the ASHLAND CITY COUNCIL MEETING JANUARY I6, 2007 PAGE 6 of 8 Council from placing this or any other charter amendments on a future ballot. Councilor Navickas voiced his preference to include strict language about protecting the water and stated he also supports the concept of paying city councilors.Ms.Seltzer noted the Charter Review Committee had made a recommendation to evaluate and review council compensation. Comment was made questioning if the Mayor would continue to present the annual State of the City address if this measure were approved,and recommendation was made to retain this function for the Mayor.Mr.Franell stated he would remove the reference to the annual address from the measure statement,although the language would not preclude the Mayor from making this address. Ms.Bennett suggested the following changes to the council/manager statement language: 1)include the word "position"after"City Administrator",2)remove the word"While"from the beginning of the last sentence,and 3) include"and" in the last sentence. Mayor Morrison requested the explanatory statement for this item include a direct statement establishing elective officials as being policy makers and staff being implementers of policy. NEW AND MISCELLANEOUS BUSINESS Mayor Morrison announced that Pioneer Hall is available for individuals who need shelter from the cold weather.Jennifer Hans of Pacific Domes noted they are offering temporary use of the dome for shelter for the homeless. 1. Budget Goals Discussion. John Stromberg,Jim Moore and Randall Hopkins presented suggested changes to the City's budget process. Mr. Stromberg explained the key idea is to have staff bring forward baseline budgets for every department, plus add on requests for additional items. He stated a baseline budget is distinguished as a budget that adhere to last years revenues. Staff would be asked to explain why any add-ons are good for the City, identify where the revenue source could come from,and what the impact on the public would be. Mr. Stromberg stated the budget is so complex and sophisticated, the department heads understand how it works, but it is almost impossible for anyone else to figure it out. He stated this proposal would shift the process so the people who are the experts(staff)are making a case to add things into the budget, instead of the Budget Committee trying to decipher and build a majority to have an item removed.Mr. Stromberg requested the Council put together a draft set of assumptions that embody this approach to give to the department heads and to use in formulating this years budget. Mr.Moore noted he served on the Budget Committee for nine years.He stated it was very frustrating and feels this could be a better process. Mr.Hopkins stated under this proposal it is Council's decision as to whether there are increases in taxes or rate hikes. He commented that every tax increase would have to be vetted by the Budget Committee and this proposal puts the Committee in the driver's seat.Mr.Hopkins explained how the suggestions of all six council members and the Mayor were used to form this proposal. Mayor Morrison thanked Mr. Stromberg,Mr.Moore,and Mr.Hopkins for their efforts and suggested Council forward the proposal to staff for evaluation. Mr. Stromberg provided clarification of the baseline revenue figure and noted there is a newer version of the proposal,which contains a 2%growth figure. ASHLAND CITY COUNCIL MEETING JANUARY 16, 2007 PAGE 7 of 8 Comment was made questioning the best way to build assumptions.City Administrator Martha Bennett noted that she and Mr.Tuneberg have discussed this and stated Council would need to determine the base or starting point for the budget. She noted there are other issues that also need to be resolved, including the budget calendar itself. Ms. Bennett stated staff would prepare and deliver a preliminary set of instructions to the Council. 2. Overview of Library Issues. Management Analyst Ann Seltzer and former Ashland Mayor Cathy Shaw addressed the Council.Ms. Shaw provided a history of this issue and commented on her contact with County officials.She submitted a transcript of the comments made by Jackson County Commissioners C.W. Smith and Jack Walker and read aloud their statements. Councilor Hartzell/Chapman m/s to.extend meeting until 10:30 p.m. Voice Vote: all AYES. Motion passed. Ms. Shaw stated she does not believe there will be a resolution from Jackson County and recommended the Council consider placing an income tax measure before the voters. She stated it is incumbent upon Ashland and the City Council to consider what they will do if Jackson County fails to take action to keep the libraries open.Ms. Shaw stated the City could consider a property tax or an income tax,but noted a property tax at the next election would require a double majority. Ms. Shaw clarified the County has indicated they would protect the books,keep the building heated and cooled and keep the computer system specialists employed. Comment was made questioning if there was a way to levy a property tax using the boundary of the school district.Ms. Shaw stated they would have to form a special district,which can only be done during even year elections. She added any city can pass a property tax, and stated a city is more likely to turn out a double majority than a county. City Administrator Martha Bennett recommended the City go forward and research an Ashland-only solution and that staff prepare potential ballot language. She suggested they not place a measure on the ballot if the County does, but wants to be ready to go if the County fails to take action. Ms. Bennett stated although a special district could not be formed at this time, staff could investigate the logistics of doing this in 2008. Ms. Shaw suggested the City also put pressure on the County Commissioners to resolve this issue and urged the Council to attend a rally on January 31.Councilor Silbiger also noted a meeting in Ashland at the Armory from 7 p.m. to 9 p.m. on January 29. Mayor Morrison agreed with Ms.Shaw that they should lobby the commissioners,but stated they also need to move ahead as a community. Councilor Hartzell/Navickas m/s to direct staff to prepare ballot language for a property tax levy to support the libraries,in case it is needed,and bring this back to Council in February.DISCUSSION: Councilor Chapman suggested including language that states it would not take effect if the County's measure passes. He stated the City measure should go on the ballot in any case.Councilor Jackson clarified we would need a double majority for a property tax. Ms.Bennett stated that staff could also look into an income tax,but warned that the City does not have any experience with these.Roll Call Vote: Councilor Hartzell,Silbiger, Jackson,Hardesty,Chapman and Navickas,YES. Motion passed 6-0. ASHLAND CITY COUNCIL MEETING JANUARY 16, 2007 PAGE 8 of 8 UNFINISHED BUSINESS(continued) 3. Capital Improvement Program (CH') and Long Range Financing. Item delayed due to time constraints. ORDINANCES,RESOLUTIONS AND CONTRACTS 1. First Reading of a Resolution Titled "A Resolution Establishing the Methodology to Pay Annual Debt Services for the Ashland Fiber Network Full Faith and Credit Bonds, Series 2004." Councilor Jackson/Silbiger m/s to approve Resolution #2007-01. Roll Call Vote: Councilor Hartzell, Silbiger,Chapman,Jackson and Hardesty,YES. Councilor Navickas,NO. Motion passed 5-1. 2. First Reading by title only of an Ordinance Titled "An Ordinance Amending AMC 3.08.020 to Apply Ethics Provisions to Employees,Appointed Officials and Elected Officials." Councilor Jackson/Chapman m/s to approve first reading of ordinance and place on agenda for second reading.Motion was withdrawn. Discussion delayed due to time constraints. 3. First Reading by title only of an Ordinance Titled "Ordinance amendments to the multi-family zoning designations (R-2 and R-3), Sections 18.24.020K, 18.24.030J, 18.24.020K and 18.28.030J. The proposed amendments modify the criteria of approval for the issuance of a Conditional Use Permit for the conversion of existing rental units into for-purchase units (condominium conversions)." Please note: this item has been postponed to the February 6,2007 meeting. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS 1. Joint Study Session Meetings. (suggested next meeting date 2/15/07) ADJOURNMENT Meeting adjourned at 10:30 p.m. Barbara Christensen, City Recorder John W. Morrison, Mayor Barbara Christensen - PIERS EFT City and Parks Page 1 From: Brenda Barker To: Barbara Christensen Date: 2/5/2007 4:20:07 PM Subject: PIERS EFT City and Parks Reply requested by 2/6/2007 Hi Barb, The totals for PIERS EFT payments on Wednesday 2/7107 are: City- $ 100,435.16 Parks-$ 14,554.22 Thank you, Brenda Brenda Barker Human Resources/Admin Services City of Ashland 20 E Main Street Ashland, OR 97520 Direct 541-552-2254 Fax 541-488-5311 barkerb @ash land.or.us TTY 800-735-2900 This email transmission is intended for the recipient as indicated above. The information contained within this document is confidential. Unauthorized distribution of the contents of this document, in full or part, is strictly prohibited. If you have received this message in error, please notify me immediately by telephone at(541)552-2254. Thank you. CC: Cindy Hanks l CITY COUNCIL STUDY SESSION JANU,4RY I I, 2007 PAGE I of 2 MINUTES FOR THE STUDY SESSION ASHLAND CITY COUNCIL January 11, 2007 Civic Center Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Morrison called the Study Session to order at 5:15 p.m. in the Civic Center Council Chambers. He noted he would have to leave early and Councilor Silbiger was selected to be Council Chair in his absence. City Administrator Martha Bennett announced the Executive Session scheduled to occur after the Study Session had been postponed to a later date. ROLL CALL Councilors Hardesty, Navickas, Hartzell, Silbiger and Chapman were present. Councilor Jackson was absent. 1. Discussion of Mt. Ashland Asset Appraisal. Administrative Services Director Lee Tuneberg introduced Ted Farwell of Winterstar Valuations, Inc. Mr. Tuneberg explained Mr. Farwell was hired in October to conduct an appraisal of Mt. Ashland Association's assets in order to assure compliance with the 1992 contract regarding minimum liquidation value. As of last January, the minimum liquidation value that is required to be maintained by Mt. Ashland Association is$288,000. Mr. Tuneberg directed the Council to the information listed on page ii of the appraisal. He noted the total liquidation value was determined to be $672,700; however the estimated cost to remove the ski lifts is $921,500 and the removal of the buildings would cost $243,000. Mr. Tuneberg requested the Council discuss the appraisal and direct their questions to Mr. Farwell. Mr. Farwell clarified the main difference between forced liquidation value and orderly liquidation value is time. He stated with a forced liquidation you have to move the items right away and will likely not get as much money. Mr. Farwell commented on the closures of two ski areas he was involved with and stated in those instances the ski lifts were not removed. He stated the land was turned over to the Forest Service and the Forest Service did not have the budget for removal. Councilor Navickas stated that under the 2005 Resolution, Mt. Ashland Association was directed to comply with the 1992 alternative which requires the ski lifts to be removed. City Administrator Martha Bennett stated the lease sets out a minimum liquidation value that must be maintained, and according to the appraisal, Mt. Ashland Association has sufficient assets on the mountain . to satisfy the requirement of the lease. She added the question of how much it would cost to restore the area is a separate issue. She stated the minimum liquidation value in the contract may not be sufficient, but Mt. Ashland Association has complied with the contract. Ms. Bennett requested the Council focus on the appraisal before them and ask their relative questions to Mr. Farwell while he is here..She stated Council could have a separate discussion on their interpretation of the lease and stated staff is not prepared to have this conversation tonight. CITY COUNCIL STUDY SESSION JANUARY 11, 2007 PAGE 1 of 2 Mayor Morrison questioned the margin of error for these types of appraisals. Councilor Navickas expressed his concern that some of the items in the appraisal may not have as high of- a liquidation value as indicated. He also stated that Section 1 of the 2005 Resolution specifically references Alternative C of the 1992 alternative, which includes specific parameters for removal of the ski lifts. Mayor Morrison left the meeting at 5:50 p.m. Public Works Director Paula Brown noted the need to get a decision from the Forest Service on whether they would require restoration or reclamation. She added the City needs to meet with the Forest Service and negotiate what would be involved. Ms. Bennett stated it is important for the Council to feel comfortable with the figures in the appraisal and noted this would come back to the Council at a regular meeting for acceptance. Councilor Navickas noted a discrepancy regarding the John Deere Wide Crawler listed on pages 16 and 17. Mr. Farwell clarified it is a 1967 Wide Crawler and is valued at approximately $4,000 with an additional $2,000 for the attachments. Councilor Navickas stated he is familiar with this piece of equipment and does not believe it is worth as much as indicated. Councilor Navickas stated he would like to have seen a more critical analysis. He expressed his concern that some of the items do not have the value listed and stated the appraisal seems to be inflated. He also commented that he does not feel they can separate the appraisal from the restoration and believes the City should work towards the best restoration possible, which includes removal of the lifts. He also stated the City should ensure that Mt. Ashland Association meets the conditions of Alternative C of the 1992 alternative. Ms. Bennett encouraged the Council to submit their specific questions to Mr. Tuneberg and noted once the report has been approved it will be legally binding. Mr. Tuneberg noted it would take a few weeks to make any necessary revisions. ADJOURNMENT Meeting adjourned at 6:10 p.m. Respectfully submitted, April Lucas, Assistant to City Recorder Bicycle & Pedestrian Commission November 1611, 2006 Regular Minutes Roll Call: Chair Dylan Robbins,Jim Olney,David Young,Vice Chair Tracy Harding(absent), Arnold Bleicher(absent), Selene Aitken(absent), Paul Rostykus(absent) Council Liaison: David Chapman Staff: Derek Severson,Associate Planner; Steve McLennan,Police Officer RVTD liaison: Paige West,RVTD/TDM Planner(absent) High school liaison: Vacant SOU liaison:Nathan Meyerson(absent) Call to Order Chair Robbins called the meeting to order at 5:15 p.m. Approval of Minutes—October 19th, 2006 Olney/Robbins m/s to approve the minutes of the October 19th, 2006 meeting as presented. Voice vote: All AYES. Motion passed. ' Public Forum Moshe Ross asked that a place to arrange carpooling be set up on the City's website. Severson noted that Carpool Match NW was already an established service supported locally by RVTD and said that he would follow up to see that a link was placed on the city website. Dubois noted that he had traffic issues to report for 8`h Street at the intersections of A Street and B Street; at Nevada Street and Glendower Street; and at the intersection of Water and B Streets. After Dubois explained his concerns, Severson and MacLennan indicated that they would follow up with Jim Olson to ensure that these locations were examined by the Traffic Safety Commission. Young reported that he, Olney, Severson, and friends and family of Carole Wheeldon had met prior to the meeting at the proposed site for the Wheeldon memorial. He explained that the general discussion was to provide shade, an additional bench and some sort of memorial plaque, and possibly a tree and/or an artistic water fountain. He noted that before proceeding, he would need to follow-up with the Public Works/Engineering Division to identify any issues with utility line routing. Chapman suggested that if the bench or whatever shade were to be provided required construction, it would be cheaper and more expeditious for commissioners and volunteers to construct them. Young and Olney stated that they would meet as a subcommittee to continuing working on this project, and after Severson providing utility routing details they would schedule the next subcommittee meeting via email. Budget Update Severson noted that no new expenditures had occurred since the budget update memo was prepared for the packets. Subcommittee&Liaison Reports There was a brief report on the Bike Swap subcommittee, and Severson indicated that he would send notice to the paper and reminders to members. Verde Village Changes to Bicycle&Pedestrian Facilities Severson explained that Verde Village was a planning action coming before the Planning Commission that involved a subdivision at the location of the Ashland Greenhouses. He stated that he was bringing to the Commission's attention because of the proximity to the Bear Creek Greenway at the site of the Dog Park and some changes. proposed for the circulation pattern in that vicinity. Dubois noted that he would still like to see directional signage and the Bicycle Friendly Community signage placed at Oak and Nevada to direct people to the Greenway and away from Eagle Mill Road. Members asked that a strongly worded recommendation be sent to the Planning Commission that the connection to the Greenway be moved either to the north over Harold Hardesty's property or between the parking lots rather than through the Dog Park parking area which is already heavily congested at times. 2006-1116 Bike&Ped minutes Page!of 2 Bike Lights.Helmets&Pedometers There was discussion of the fact that the Police Department was willing to sell helmets and lights as a one-stop distribution point. Severson noted that he had been provided a balance of the funds available, but had to determine how these funds had been considered within the budget before determining how they could be spent. There was brief discussion of a pedometer program, noting that it appeared that $15 was the threshold level for purchasing a quality unit, and it was suggested that a partnership with the YMCA might be possible here. It was noted that Harding had been the one who initiated this item, and those present felt it most appropriate to postpone further discussion until she was present. Weekly Car Free Day It was noted that Harding had been the one who initiated this item, and those present felt it most appropriate to postpone further discussion until she was present. Safe Routes There was discussion of pursuing Safe Routes grant funds when they become available for the Laurel Street sidewalk project. Young/Olney m/s to endorse a sidewalk construction project on Laurel Street as a Safe Route to Helman School. Discussion: Members questioned whether this would preclude doing work elsewhere, such as adjacent to Walker School. Voice vote: All AYES. Motion passed. Goal Setting—Preliminary Discussion Severson explained that for the past few years, there hasn't been interest in doing a formal goal setting session as members have repeatedly expressed their preference for dedicating their personal efforts to individual items in their areas of interest that they were willing to champion rather than a broader set of Commission-wide items. He further noted that at the recent discussions of the commissioner surveys, several members of the commission had expressed an interest in doing a more formal goal setting process. He asked if there was a consensus to move forward with this, and suggested that if there was, it would be appropriate to make this the primary item on the agenda for the first meeting of the new year. After brief discussion, those present indicated they would like to do this. New Business Dubois asked that an agenda item be added in the near future to discuss safety education for cycling on the street in a motorized world,and noted that he would be doing a presentation with this focus at the high school as part of a downhill mountain biking program, and suggested that the Commission might be interested in sponsoring the program. It was noted that Bill Bradbury would be in town shortly to present Al Gore's"Inconvenient Truth"slideshow dealing with global warming. Olney noted that he would be attending the upcoming Jackson County Bicycle Advisory Committee meeting. Agenda Items for Next Month Goal Setting. Adjoumment The meeting was adjourned at 6:47 p.m. Upcomina Meetings: Regular Meeting—January 18"at 5:15 p.m. 1006-1116 Bike&Ped minutes Page 2 of 2 CITY OF ASHLAND Minutes Conservation Commission 12/06/06 These Minutes will be reviewed by Conservation Commission at the January 24, 2006 Conservation Commission Meeting. December 06, 2006— 7:05 pm City Council Chambers 1175 East Main St. Ashland CALL TO ORDER Chairperson Amarotico called the meeting to order at 7:00 p.m. in the City Council Chambers. ROLL CALL Attendees: Risa Buck, Russ Chapman, Ross Finney, Lindsay Gerken, Jim Hartman, Kathryn Houser and Melissa Schweisguth, and Stuart Corns were present. City Council Liaison: Alex Amarotico Staff Liaison: Cathy Cartmill APPROVAL OF MINUTES Chairperson Amarotico noted that Dave Chapman and Kate Jackson were not official Council Liaisons and should be listed under public forum. Chairperson Amarotico asked for an approval of the October 25, 2006 minutes. Commissioner Buck corrected the Ashland Greenhouse project to the proposed Verde Village Project. Commissioner Buck corrected her email address to wastenot(a)_ashlandhome.net. Commissioner Buck wanted to include under Item H on the third page, that it should read Environmental Sustainability Issues, not Environmentally Sustainability Issues. Also, page 3, question 6 which read: Can you suggest any improvements in communication between your commission and the City Council? Commissioner Buck would like it to read: To support the City, to modify the decision making structure with guidelines that are truly sustainable. Commissioner Schweisguth noted on the 3rd page, Item C to include Water Use and Water Reuse Efficiency Issues should read Item C to include Water use and reuse inefficiency issues. Commissioner Chapman made a motion to approve the minutes of October 25, 2006 with the noted changes and Commissioner Finney the motion. Voice vote: all Ayes. The motion passed with a unanimous vote. The minutes of the Conservation Commission Meeting of October 25, 2006 were approved. CC Min 12 06 06 finaldoc.doc Page 1 of 4 PUBLIC FORUM No one present wanted to speak at that time. ASHLAND SANITARY & RECYCLING UPDATE: Set aside OLD BUSINESS Update on Global Warming Event Cathy Cartmill asked the Commission if they were going to pay half of the cost for the event in the amount of$400.00. Chairperson Amarotico clarified that the event had already been paid through the Conservation/Electric Department. Commission Buck raised concerns regarding the final bill for the event, due to lack of heat and equipment not working properly. The Commission discussed different aspects of the Global Warming Event. Commissioner Finney offered a motion that the Conservation Department fund 50% of whatever the final cost of the event up to$400.00. Commissioner Hartman seconded the motion. The Commission discussed different aspects of the Global Warming Event including cost, space, expectations, sponsors and the responsibilities of funding the event. Motion was withdrawn and the second was withdrawn by Commissioner Finney and Hartman to be able to revisit the final bill at the next meeting and asked to put it on the agenda. Commissioner Schweisguth would like to find out what the process was for organizing events and how limited time affects the choices/venues involved. Commissioner Buck and Schweisguth reminded the Commission that Bill Bradbury specifically wanted to involve the youth and therefore the Ashland High School would promote youthful attendance. Commissioner Buck reported that Jim McGinnes attended the Al Gore Global Warming training to be a represented, and she invited him to attend the Conservation Commission meeting. Commissioner Chapman made a motion the Commission support 50% of the bills.turned in from the school district. Commissioner Corns seconded the motion. Commissioner Schweisguth would like staff to develop a list of local venues for future events. Voice vote: all Ayes. The motion passed with a unanimous vote. ICLEI Conference Call, membership decision The Commissioners discussed supporting the ICLEI membership with a cost of$600.00. The members who attended a conference call with ICLEI presented a summary of the benefits associated with the membership fee. The Commission members discussed at length active participation in ICLEI, the software associated with the Capstone projects from SOU, and future participation. Commissioner Houser moved to spend$200.00 of the Commissions budget to join ICELI for one year. The motion was seconded by Commissioner Hartman. Voice vote: all Ayes with Commissioner Gerken opposed. The motion passed with a majority vote. CC Min 12 06 06 finaldoc.doc Page 2 of 4 Commissioner Gerken expressed concerns of how many man hours (voluntary or paid) it would take to analyze data, look at the software that could be used in the future to create policy. Discussion followed. Commissioners Hartman, Buck, Schweisguth, and Chapman volunteered to explore different options meet and discuss Global Warming issues and possible form a subcommittee or a task force with other city committee members or citizens. Commissioner Chapman reported on the progress for the Earth Day Event, themed "Be the Change'. Commissioner Buck remarked the event would now take place at Science Works. Commissioner Finney made a motion to commit$800.00 from the Conservation Commission's budget for the Earth Day Event. Commissioner Schweisguth seconded the motion. Voice vote: all Ayes. The motion passed with a unanimous vote. ASHLAND SANITARY & RECYCLING UPDATE: Commissioner Chapman reported for Ashland Sanitary about leaf recycling and how they diverted 12 boxes or 60,000 leaves and 700 pounds of nursery plastic containers. Ashland Sanitary will follow Commissioner Hartman's suggestion about paying for the recycling of fluorescent bulbs with money received from recycling ink cartridges. People may recyle the cartridges at the Ashland Coop and the Depoe. Information is available on their website. NEW BUSINESS Sustainability Plan/Resolution Commissioner Schweisguth outlined a sustainability plan that was in draft form and hoped for feedback from the Commission. The goal would be to have the City endorse a long term sustainability plan, which could be a foundation for policy, actions, education and on-going projects. The Commissioners discussed how the plan could be utilized within the City. SUBCOMMITTEE REPORTS 1. Garbage Land Sub-Committee No report 2. Education/Events No report 3. Green Business No report. COMMISSION ITEMS NOT ON THE AGENDA Commissioner Buck asked Paula Brown for an update regarding Bio Diesel, and Public Works will update the Council on January 11, 2007 and mentioned they have 3 Hybrids and going to receive one more by the end of year. Commissioner Buck also reported the paint the City uses is called striping paint, with is a solvent based paint and unnecessary for the stenciling project. North Mountain park will use a new water based paint that Commission Buck was able to locate and a new sticker that is easier to see. CC Min 12 06 06 finaldoc.doc Page 3 of 4 Cathy Cartmill reported the City was approved for a $500,000 Federal bond for the solar project and will move forward with that. Also, the promotion, Saving with a Twist, has reached its goal of selling 6,250 CFLs. ANNOUNCEMENTS Next meeting date, January 24, 2007 The Commission formally thanks Alex Amarotico for his service to the City Council and liaison to their Commission. ADJOURNMENT Meeting adjourned at 9:10 pm. Respectfully submitted, Mary McClary, Administrative Assistant to Electric/IT/Telecommunications Department CC Min 12 06 06 finaldoc.doc Page 4 of 4 CITY OF ASHLAND Council Communication Confirmation of Appointment of the Police Chief Meeting Date: February 6, 2007 Primary Staff Contact: Martha Bennett Department:Administration E-mail: bennettm()ashland.or.us Contributing Departments: N Secondary Staff Contact: None Approval: Martha Beene Estimated Time: Consent Agenda Statement: The appointment of Terry Holdemess as Police Chief for the City of Ashland. Staff Recommendation: Confirm the Mayor's appointment of the Police Chief. Background: The city advertised for a Community Development Director in September and October of 2006. There were nearly 50 applicants for the advertised position. Two top candidates were interviewed in a two day process on December 14, and 15 2006. After the interview process, the City conducted an extensive background investigation, including an on-site visit by the Mayor, Interim Police Chief Ron Goodpaster, and myself in Fontana, California on January 22 and 23. As a final step in the background process, Mr. Holdemess is undergoing a physical and psychological examination, which will be complete prior to the February 6, 2007 City Council meeting Terry Holdemess best meets the qualifications in the job announcement and job description. He has extensive experience with police work, especially community policing. He is an excellent leader who is knowledgeable in the areas that most affect policing in Ashland. Related City Policies: None. Council Options: Confirm or defer confirmation of appointment awaiting further information. Potential Motions: Council moves to confine appointment of Holderness as Police Chief Attachments: Employment Agreement Resume of Terry Holdemess CITY OF ASHLAND DRAFT Employment Agreement Police Chief THIS AGREEMENT, made and entered into this — day of February 2007 by and between the City of Ashland ("City") and Terry Holderness ("Employee"). RECITALS: A. City desires to employ the services of Employee as Police Chief of the City of Ashland; and B. It is the desire of the City to establish certain conditions of employment for Employee; and C. It is the desire of the City to (1) secure and retain the services of Employee and to provide inducement for Employee to remain in such employment, (2) to make possible full work productivity by assuring Employee's morale and peace of mind with respect to future security; (3) to act as a deterrent against malfeasance or dishonesty for personal gain on the part of Employee; and (4) to provide a just means for terminating Employee's services at such time as Employee may be unable fully to discharge Employee's duties due to disability or when City may otherwise desire to terminate Employee's services; and D. Employee desires to accept employment as Police Chief of City of Ashland, and to begin his employment on April 9, 2007. City and Employee agree as follows: Section 1. Duties. The city hereby agrees to employ Terry Holderness as the Police Chief of the City to perform the functions and duties specified in City ordinances, and the job description attached as Exhibit A and to perform such other legally and ethically permissible and proper duties and functions as the City Council shall from time to time assign. The Police Chief shall devote full time to the performance of his duties. The Police Chief may hold outside employment so long as it does not impact the ability of the Police Chief to effectively perform his duties. Section 2. Term. A. Nothing in this agreement shall prevent, limit, or otherwise interfere with the right of the Mayor, with the consent of the City Council in accordance with the City Charter, from terminating the services of the Police Chief at any time, subject only to the provisions set forth in the section entitled "Severance pay' of this agreement. HAShipletMCOUNCIL\Council Communication\2007\Appointment of Police Chief.atchl.doc Pag B. Employee agrees to remain in the employ of City until April 9, 2009, and, except as set forth in Section 1, neitherto accept other employment norto become employed by any other employer until this termination date, unless the termination date is affected as otherwise provided in this agreement. This provision shall not restrict Employee from using vacation or personal leave for teaching, consulting or other activities provided these activities do not conflict with the regular duties of the Employee. C. In the event written notice is not given by either party to terminate this agreement at least ninety (90) days prior to the termination date, this agreement shall be extended for successive two-year periods on the same terms and conditions as provided herein. D. In the event Employee wishes to voluntarily resign the position during the term of this agreement, Employee shall be required to give the City six weeks written notice of such intention, unless such notice is waived by the City Administrator with the approval of the Mayor and City Council. Employee will cooperate in every way with the smooth and normal transfer to the newly appointed individual. E. Employee must meet all of the certification requirements for a Chief of Police in Oregon as required by the Department of Public Safety Standards and Training (DPSST) as outlined in OAR 259-008-0076 and OAR 259-008-0010. Failure to meet those standards shall automatically terminate this contract, and the employee will not be eligible for the severance provisions outlined in Section 11 of this contract. Section 3. Salary. Beginning April 2, 2007, City agrees to pay Employee a monthly salary at Step C. of the salary schedule ($7,694) payable at the same time and in the same manner as other employees of the City are paid. The Employee shall be eligible for an increase to step D of the salary schedule ($7,999) upon completion of a satisfactory evaluation 6 months after start date. In addition, City agrees to annually increase the monthly salary and/or benefits in the same percentage as may be accorded other department heads. Section 4.'Performance Evaluation. The City Administrator shall review and evaluate the performance of the employee at least once annually. Section 5. Hours of Work. It is recognized that Employee must devote a great deal of time outside the normal office hours to business of the City, and to that end Employee will be allowed to take compensatory time off as Employee shall deem appropriate during normal office hours, so long as the business of the department is not adversely affected. Work in excess of an average of forty (40) hours per week is deemed part of the professional responsibility for which the Employee shall not be paid overtime but for which he shall receive a minimum of five (5) days of administrative leave each year. Employee will receive additional administrative leave if granted by the City Council in the Management Resolution adopted each year. H:\ShipletD\COUNCIL\Council Communication\2007\Appointment of Police Chief.atchl.doc Pag Section 6. Automobile. Employee's duties require that Employee shall have the exclusive use at all times during employment with the City of an automobile to carry out the business of the City. The City shall either provide use of a City owned vehicle or an automobile allowance of $350/month for the use of said automobile for travel. If Employee elects to use the automobile allowance, Employee shall be responsible for paying for insurance, operation, maintenance and repairs of the vehicle. Section 7. Health, Welfare and Retirement. Except as modified by this agreement, Employee shall be entitled to receive the same retirement, vacation and sick leave benefits, holidays, and other fringe benefits and working conditions as they now exist or may be amended in the future, as apply to any other department head, in addition to any benefits enumerated specifically for the benefit of Employee as provided in this agreement. With respect to vacation benefits, the Employee will initially accrue vacation leave with pay at the rate of ten and 2/3rds (10.67) hours per month. Employee shall continue to accrue vacation time at this rate until longevity would afford Employee a higher vacation accrual in accordance with the Management Resolution. Afterward, Employee will accrue additional vacation hours at the same rate as City Department Heads. In addition, the City will credit ten (10)days of vacation leave to his account upon employment, which shall be in addition to the vacation time he would otherwise accrue as a City Employee. Section 8. Dues and Subscriptions. City agrees to budget and to pay for the professional dues and subscriptions of Employee necessary for the continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for Employee's continued professional participation, growth and advancement, and for the good of the City. Section 9. Professional Development. A. The City hereby agrees to annually budget and allocate sufficient funds to pay the expenses of the Police Chiefs necessary travel and living expenses to represent the City at conferences or meetings of national and state committees or commissions upon which the Police Chief serves as a member, said membership on said state commissions or committees being subject to the approval of the City Administrator, and for such other official meetings or travel as are reasonably necessary forthe professional advancement of the Police Chief as approved by the City Administrator B. City also agrees to budget and to pay for the travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for his professional development and for the good of the City. HAShipletMCOUNCIL\Council Communication\2007Wppointment of Police Chief.atchl.doc Peg Section 10. Professional Liability. The City agrees that it shall defend, hold harmless, and indemnify the Police Chief from all demands, claims, suits, actions, errors, or other omissions in legal proceedings brought against the Police Chief in his individual capacity or in his official capacity, provided the incident arose while the Police Chief was acting within the scope of his employment. If in the good faith opinion of the Police Chief, conflict exists as regards to the defense of any such claim between the legal position of the City and the Police Chief,the Police Chief may engage counsel, in which event, the City shall indemnify the Police Chief for the cost of legal counsel. ' Section 11. Severance Pay. A. In the event of the involuntary termination of the Police Chief during the term of this agreement, or a successor agreement, he shall be entitled to receive a lump sum payment equal to six (6) months aggregate salary and benefits. Termination by the City, as used in this paragraph, means the Police Chiefs discharge or dismissal by the Mayor with consent of the City Council or the Police Chiefs resignation following a salary reduction greater in percentage than an across-the-board reduction for all city employees, or the Police Chiefs resignation following a formal request to him by the City Council that he resign. Said sum shall be paid to the Police Chief within thirty (30)days of the next regular council meeting after said termination. B. In the event Employee is terminated because of his conviction of any crime involving moral turpitude or illegal act involving personal gain to him, then, in that event, City shall have no obligation to pay the aggregate severance sum designated in Section 11.A. Section 12. Other Terms and Conditions of Employment. City shall, by amendments to this agreement, fix such other terms and conditions of employment, from time to time, as it may determine, relating to the performance by Employee with the agreement of Employee, provided such terms and conditions are not inconsistent or in conflict with the provisions of this agreement. Section 13: Moving and Relocation Expenses The City will pay expenses associated with moving Employee's household from California to Ashland in an amount not to exceed $10,000. Moving expenses include packing, moving, storage costs, unpacking, and insurance charges for moving and storing Employee's household goods. Moving expenses also include actual lodging and meal expenses and mileage costs for moving two personal automobiles and shall be reimbursed at the current IRS allowable rate while the employee is in transit. Moving expenses shall also include actual lodging, meal expenses, and mileage (or airfare)for up to two visits to Ashland for the Employee and family for the purpose of securing a permanent residence. Finally, moving expenses include the actual costs for employee of securing temporary housing, prior to moving into permanent housing, for up to two months. WShipletD\COUNCIL\Council Communication\2007Wppointment of Police Chief.atchl.doc Pag Section 14. Severability. If any part, term, or provision of this agreement is held by the courts to be illegal or in conflict with the laws of the State of Oregon, the validity of the remaining portions of the agreement shall not be affected and the rights and obligations of the parties shall be construed and enforced as if the agreement did not contain the particular part, term, or provision. Section 15. PERS Pick-up. Employee contributions to the Public Employees' Retirement system (PERS) shall be "picked up" by the City. Employee shall not have the option of receiving money designated for retirement contributions and directly making the contribution to PERS. Employee's reported salary for tax purposes shall be reduced by the amount of the employee's contribution to PERS. Dated this of 2006. Barbara Christensen, City Recorder John Morrison, Mayor Accepted this day of February 2007. Terry Holderness HAShipletMCOUNCIL\Council Communication\2007Wppointment of Police Chief.atchl.doc Pag TERRY HOLDERNESS PkOrusi6,VAL ExPERIENcE 1981 — present City of Fontana Police Department,Fontana,CA Captain(200(�present) Lieutenant(19,$9-2000) Sergeant(1984-1989) Officee(1981-1984)- 1979— 1981 City of Corona Police Department, Corona,-CA i Of f icer 4 1977- 1979" Los;Aogeles County Sheriff Depattmetit,Los Angeles,CA ` Deputy Sheriff I �. EpucaioN r 2602 NM,Education,San Diego State University,,San'Diego,CA 1977 B.S.,Criminal Justice,California State University, Long Beach,CA - i F I 'I 1� . TERRY HOLDFRNESS RESUME OF QUALIFICATIONS SUMMARY OF QUALIFICATIONS More than 28 years experience in law enforcement: Bachelors Degree in Criminal Justice and Masters Degree.` Educational Leadership. Fifteen years experience as a police manager. Graduate of the California POST Command Collegc and the Senior Management Institute for Police. Management experience in patrol;.-investigations, administration and special operations. Extensive experience in the areas of police personnel issues, grants,training, crime prevention though environmental design and traffic enforcement.Nationally recognized expert in community policing and development of community based programs to reduce crime and disorder. EMPLOYMENT HMSTORY July 2000 to Present Position: Police Captain Agency: Fontana Police Department Summary of Duties= Commander of Special Operations and Field Services Divisions.As commander of the Field Services-Division currently have man agementresponsibility for,all patrol and investigations functions for a departmentof'195 sworn officers. As Commander of the Special Operations Division had I , management nspoirsibility for all of the police department's special units and programs. The City of Fontana'a one of the fastest growing cities in the United States and the Special Operations Commander is responsible for dealing with other city departments, the Planning Commission-and the development community on issues related-to environmental design,planning and crime. Selected Accomplishments:Assisted in development and management of several programs and probtem solving efforts credited with reducing traffic collisions,calls for service and crimecitywide. Responsible for development of most of the programs that have resulted inthe Fontana being chosen by the-California Regional'Community,Policing Institute to receive their top honor for excellence in community policing twice in the last three years..Oversaw the review and implementation of a department wide use of force study and recently completed strategic growth and`reorganization plans. Helped develop and manage the School Resource Officer program that-has beenrecognized;as a model program by•both the National. Association of School Resource Officers and the United Stated Department of Justice. Projcetdirector for the Community Assistance Program, which is a partnership with'local churches and over one hundred other government and community organizations that provide temporaryassistanccdo Fontana residents. Invited to speak at several major conferences and wrote articles that appeared in Police Chief and Western Cities magazines on community pblicing and traffic collision reduction strategies. June 1989 to June 2t Position. Police Lieutenant TERRY IiOLDERNESS RESUME OF QUALIFICATIONS Agency: Fontana Police,Department' Summary,of Duties: Supervision and management of police personnel. Worked patrol,administration 1 and the community policing unit At various times managed records,dispatch,traffic,gangs,narcotics; bikes;:intemal affairs, training and crime prevention units. [lad primary responsibility for developing department's community policing strategy and was part of the grant writing team. Selected.Accomplishments Involved in the development of programs and problemsolving efforts that substantiality reduced drug trafficking, the number of homeless persons and graffiti city wide. Wrote grants that brought over three million dollars in grant funding into the city: Responsible for the development of programs that received awards for excellence in community policing from several national and intemational organizations,including the National l.eagueof Cities and the International Association of Chiefs of Police. Most of those programs were collaborative efforts with local community groups and other government agencies. Invited to speak at several regional,national and international conferences on community and problem oriented policing.Wrote and oversaw impiementation,of several city ordinances E to,address public safety issues incli ding the fust.parolee housing ordinance implemented in the State of California.Wrote the department's first department wide training plan. ,i l December 1984 to trine`1989 Position: Police-Sergeant t Agency: Fontana Police Department I I Summary of Duties: General supervision of patrol-shift for approximately '18 months. One year of experience as persrsonnet and training sergeantand:two years of experience as supervisorof investigations, narcotics and multi-jurisdistional auto theft units. Selected Accomplishments: Wrote;new Field Training Officer program,and training programs for " Community Service Officers and Dispatchas. Organiied the department's first, comprehensive j neighborhood based narcotics program which significantly reduced narcotics activity related crime in a large area of Fontana. Received commendation for significantly;4wreasing department's DUI arrests. June 1'981 to II)eeember 1984 Position: Police Corporal/Officer Agency: Fontana Police Department Summary of Duties:General patrol duties and assignment as a:K-9 officer for two years. Assigned as a' detective with duties to investigate;all serious crimes occurring in the city. Selected Accomplishments: 'Led patrol uritin DUI arrests and led the investigations unit in:overall arrests: October 1979 to June 1981 Position: Police Officer TERRY HOLDERNESS. RESUME. OF QUALIFICATIONS Agency: Corona Police Department Summary of Duties: General-patrol duties. Selected Accomplishments:Led the department in DUl arrests. October 1977 to October 1979 Position: Deputy Sheriff Agency: Los Angles County Sheriff Summary of Duties: Supervision of Jail inmates. f Selected Accomplishments: Assigned to work special handling inmates. Commendation for saving a suicidal inmate's life. EDUCATION' t June 2001 to December 2002- San"Diego State University Course,bfStudy Educational Leadership Degree.Aequired: Master of Arts in Education June 1978 to.September 1979 Pepperdine University Course of Study: Graduate level work'in Public;Adm inishation Units Completed: 27 September 1972 to June 1977 California;State University"Long Beach i Course of Study:: Chminal justice Degree Acquired: Bachelor of Science in Criminal Justice t EXECUTIVE TRAINING COURSES Command College California POST Commission Completed June 1998 Executive Development Course California POST Commission Completed November 2002 Senior Management institute Police Executive Research Forum for Police Completed June 2005 PROFESSIONAL CERTIFICATES TERRY HOLDERNESS RESUME OF QUALIFICATIONS California POST Management Certificate Califonna'POSf Supervisor Certificate= California POST Advanced Officer Certificate Vocational Education Teaching Certificate L ..----_. _._.....�_____�_.._.._...._._. ._._.._._.,...._...__..�_._.._. CITY OF ASHLAND Council Communication Approval of Public Contract for a Term Exceeding Two Years— Multifunction Business Machine Lease Meeting Date: February 6,2007 Primary Staff Contact:Jim Olson, 552-2412 Department: Public Works E-mail: olsonj @ashland.or.us Contributing Departments: Co#Dv, egal Secondary Staff Contact: Nancy Slocum,552-2420 Approval: Martha Benn E-mail; slocumn @ashland.or.us Estimated Time: Consent Age Statement: This action is to request approval from the City Council, as the Local Contract Review Board, to enter into a four year lease for two Xerox multifunction machines at a total four year cost of$35,207.52(assuming current average monthly usage stays the same).The Public Works Administration, Engineering and Community Development divisions share costs and the use of the copier/fax/printer/scanning machines. The lease agreement exceeds the twenty four month period requiring approval by the LCRB. Background: The current four year Ikon Office Solutions lease has expired on two Canon multifunction machines at 51 Winburn Way. The cost of the lease was shared by the Public Works Administration, Engineering and Community Development divisions. The current Canon machines were leased just as Community Development, Engineering and Public Works Administration moved into the shared facilities at 51 Winbum Way. At that time it was difficult to determine what the combined usage and needs of the equipment would be. The four year lease offered a testing period to gauge the needs of the building in terms of volume and performance. In November, 2006, a call for solicitation was sent out to interested companies to replace the smaller front counter machine and the large production machine. With four years of experience as a combined building, the solicitation more fully reflected the current demands. In addition, new technology has made the reproduction and archiving of documents more efficient. Of particular importance was the increased reliance on scanned documents and the need to scan documents quickly and efficiently. A four year lease term was selected because of significant cost savings from the two or three year lease. There was another cost savings at five years, however, our experience with the current machines indicate there are more maintenance problems with time and an increased likelihood of the technology becoming outdated. The call for solicitation was offered to Advanced Business Systems, Ikon Office Solutions, Inc., Imagistics and Superior Office Systems. All four potential suppliers responded by submitting quotes. The qualifications for the smaller multifunction machine included a slightly faster machine to increase the efficiency for front counter customer service with additional paper capacity, envelope printing, the latest technology in scanning (scanning to email and scan to network file)and fax capabilities. The table below compares the current machine with the least expensive comparable model from each bidder. The cost per image varies from month to month depending on usage and is added onto the monthly rental cost. G:\pub-wrks\wg\dept-admin\ENGINEER\Budget\Copiet\Xerox CC Copier Contract 6Feb07.doc Pages Average Maintenance True Cost Comparable Per Model Bid Minute Monthly se Monthly Agreement (monthly) (ppm) Usage Ima e Current Canon 2200 22 $176.57 3685 $0.013 $224.48 Machine Bidders Advanced Ricoh Aficio Business 3035 35 $180.00 3685 $0.010 $216.85 Systems Ikon Canon 3570 35 $232.62 3685 $0.0065 $256.57 Imagistics Im4511 45 $164.67 3685 $0.006 $186.78 (Sharp) Superior Office Xerox Systems WorkCentre 38 $208.48 3685 $0.0084 $239.43 Pro 238 The new qualifications for the large production machine included a slightly faster machine to increase the efficiency for copying commission packets and other large documents, three-hole punching and the latest technology in scanning (scanning to email and scan to network file). The new machines could not exceed the existing footprint due to space limitations.The table below compares the current machine with the least expensive comparable model from each bidder. Pages Maintenance Model Per Monthly Average Agreement True Cost Tested Minute Lease Monthly Costper (monthly) m Usage ►ma e Current Machine Canon 50 $325.94 32,000 $0.0080 $582.00 5000 Bidders Advanced Ricoh Business MP7500 75 $382.75 32,000 $0.0069 $603.55 Systems Ikon Canon 65 $413.00 32,000 $0.007 $637.00 6570 Imagistics Im5530 55 $213.60 32,000- $0.006 $405.60 (Sharp) Superior Office Xerox Systems WorkCentre 65 $302.06 32,000 $0.0060 $494.06 Pro 265 Demonstrations were set up with the ABS, Imagistics and Superior Office Systems machines and since staff is familiar with Canon it was felt a field visit was adequate. Input was received from staff on the use of the machines and also from the IT department on the compatibility of the machines with the current network system. Xerox through Superior Office Systems was not the least expensive, but was less than the recently expired lease, and was the best responsive bidder. The advantages of Xerox over the over bidders are: 1. Easier network integration than any of the competitive products 2. Very knowledgeable and responsive IT assistance 3. Four hour response time for service calls G:\pub-wrks\eng\dept-admin\ENGINEER\Budget\Copier\Xerox CC Copier Contract W607.doc 4. The availability of"Smart Kits" (customer replaceable units such as the xerographic module and fuser) decreases potential downtime 5. Stored programming for frequently run copy jobs 6. Duplexing(two sided copying)from the bypass tray 7. "Print Around"feature—jobs keep printing if an earlier print job requests media that is not loaded in the machine 8. Ability to fax directly from the PC 9. Scanning function produces high quality electronic files that are clean and straight 10. Xerox owns the machines and provides insurance. 11. Meet available space requirements Draft leases were circulated to the Legal Department for review and comment. The Legal Department did not have any changes to the lease. Sourcing Method: Under the Ashland Municipal Code,the procedures for Intermediate Procurement for Goods and Services for under $75,000 were applicable.As this was an intermediate procurement, it was sent directly to suppliers as a call for solicitation. The proposed lease agreement was signed by Administrative Services and Finance Director Lee Tuneberg on January 25, 2007 with the condition that the contract could be negated any time within sixty(60)days pending Council approval.This action was necessary to lock in the quoted lease payment which included a trade in value from a machine donated to Xerox. The sales representative offered this trade as part of the lease agreement on the condition that the lease is signed prior to January 31st. Signing the lease before this date saved the City$76 per month ($3,648) in lease payments for the two machines over the next four years. The cancellation clause is stated in attached lease Section 24(B)and in the letter dated January 24, 2007 from Ted Darnall, President, Superior Office Systems (Xerox sales agent). Related City Policies: AMC Chapter 2.50.015 The Purchasing Contracting Officer is authorized to recommend that the Local Contract Review Board approve or disapprove a contract when the term exceeds twenty-four months. Under AMC 2.50.020(A)(ii), the Purchasing Agent shall have the authority to execute a contract without prior Council approval if the contract does not exceed a twenty-four month contract period. Council Options: Local Contract Review Board can approve the lease agreement with Superior Office Systems for the four year lease term for two copier/fax/scanner/printer machines for the Community Development, Public Works Administration and Engineering Services Building. Staff Recommendation: Staff recommends that the public contract be awarded to Superior Office Systems for four year multifunction business machine services. Potential Motions: Council, acting as the Local Contract Review Board, moves to approve the lease agreement with Superior Office Systems for the two copier/fax/printer/scanner machines. Attachments: Draft Lease Letter dated January 24, 2007 from Ted Darnall G:\pub-wrks\eng\dept-admin\ENGINEER\Budget\Copier\Xaox CC Copier Contract 6Feb07.doc LEASE AGREEMENT XEROX. Full Legal Name - Customer Name(Big to) CITY OF ASHLAND Check all that apply DBA/Name Overflow ❑Assoc./Coop.Name: Street Address 20 E MAIN ST ®Negotiated Contract#:077167600 ❑DSA Contract#: - Box#/Routing []Value Added Services: City,State ASHLAND,OR ❑Attached Customer P.O.#s: Supplies: Zip Code 97520-1850 Lease: -fax ID# ©State or Local Government Customer Customer Name(Install) CITY OF ASHLAND Int.Rate:% Total Int.Payable:S DBA/Name Overflow(if req'd) PUBLICWORKS Replacement/Modification of Prior Xerox Agreement Agreement covering Xerox Equipment Serial#(or 95#): Installed at Street Address 51 WINBURN WAY is hereby ❑modified ❑replaced Effective Date: Floor/Room/Routing Comments: City,State ASHLAND,OR Lease Information Lease Term: 48 months Zip Code 97520-2735 ®Supplies included in Bate/Print Charges County Installed In Jackson ❑ Reftn.of Prior Agrmt.:❑Xerox(95#): ❑3rd Party Eq. Cuslana Requested kWall Date 03=007 Amt Refin:S Int Rate:% Total Int Payable:S Lease Payment Information Product Purchase Down Prev Fin'I Min.Lease Payment Frea. (with serial number,if in place equipment) Option Payment Install Interrn ucnWic,�dud�aaa eeu meu chum) WCP238H WCP238 PTR/SCN/HCF FMV ❑Monthly ❑Quarterly 1 200ENVKIT 1 2000FCFIN I WPEMFAXI ❑Semi-Annual ❑Annual Analyst Services ❑Other Min.Lease Payment Mode $ 208.48 :MINIMUM LEASE PAYMENT (excl.of applic.taxes) []Advance ❑Arrears Price Information ❑ Adjustment Period Period A-Mos.Affected: Period B-Mos.Affected: Periodic Base Charge 208.48 Periodic Base Charge 'b Periodic Base Charge b Print Charge Meter 1: moffieffim Print Charge Met12 ;; Print Charge Meter L Prints 1 - + 'b 0.0084 Prints Prints 1 - '6 Prints - Prints Prints - Prints - Prints Prints - Print Charge Meter 2: Print Charge Met Print Charge Meter 2: Prints 1 - Prints I Prints 1 - Prints - Prints Prints Periodic Min.#of Prints Periodic Min.#of Prints Periodic Min.#of Prints (based on Meter 1 Print Charges) (based on Meter 1 Print Charges) (based on Meter I Print Charges) ❑ Purchased Supp lies ❑ Cash ❑ Fin'd ❑ Application Software Reorder# Qty Description rice Software Title nitial License Fee mual Renewal Fee S ❑Cash ❑Finance ❑Su ort Onl S S T°�Price= Total Initial License Fees= © Trade-In Allowance ❑K-16 Billing Additional Options(check all that apply) Manufacturer Modell Final Allowance Suspension ❑Run Length Plan Fixed Price Plan Serial# Princi al Pa ent#: (check I as required) ❑per-Foot Pricing CANON NP 2020 S Months affected ❑Extended Service Hours: SHARP SF 2022 S ❑ June only Description: is 0 mo. S ❑ July only ©Attached Addenda: 518604(l):54100SLG Total Allowance= ❑ August only Total Allowance Applied to: []Trade-In Equip.Balance: S ❑ June-July ❑Other Addenda: ❑Price of Replemn[.Equip.: ❑ July-August Agreement Presented By: CUSTOMER ACKNOWLEDGES RECEIPT OF THE TERMS OF THIS Xerox Name:Lee vj�' gareda Phone:(541)779-1251 AGREEaIENT(CONSISTING OF 8 PAGES INCLUDING THIS FACE PAGE) FOR AU'l HOR1/_LD HQ INTERNAL USE ONLY Auth.Signer Name: Lee Tuneberg Accepted: Xerox Corporation (Please Prim Name ofAulh By orixealSigner) : q LC:};nun:r.nl Aarhori.-nl$i....... Signature:X ;� /r--•Z Date: 7illr' Date: — (SIgnature m Aur onze .l Auth.Signer Title: Director Phone:(541)488-5300 Worksheet:D66241 Unit: 1 1/24/2007 12:33:09 E-Mail: Www.Xeroxxo iI ❑Tax Exempt(•Must attach Sales Tax Exemption Certificate) Xerox Form#51860(05/2005) 1242007 Page I of 8 LEASE AGREEMENT(ADDITIONAL PRODUCTS) XEROX. Full Legal Name Customer Name(Bill to) CITY OF ASHLAND DBA/Name Overflow Check all that apply ❑Attached Customer P.O.#s: Supplies: Date of Customer Signature on Attached Agreement Lease Customer Name(Install) CITY OF ASHLAND ❑x State or Local Government Customer DBA/Name Overflow(if req'd) PUBLIC WORKS _Int.Rate:% Total Int.Payable:S Installed at Street Address 51 WINBURN WAY ❑Replacement/Modification of Prior Xerox Agreement Flom/Room/Routing Agreement covering Xerox Equipment Serial#(or 95#): City,State ASHLAND,OR is hereby ❑modified ❑replaced Effective Date: Zip Code 97520-2735 Comments: County Installed In Jackson Lease Information Customer Requested Instal Date 032711007 Lease Term: 48 months ©Supplies included in Base/Prim Charges ❑ Refin.of Prior Agnnt.:❑Xerox(95#): ❑3rd Party Eq. Amt Refin:S Int Rate: % Total Int Payable:$ Lease Payment Information Min.Lease Payment Freq. Product Purchase Down Prey Fm 1 (periodic,adudieg ams n w ch.rga) (with serial number,if in place equipment) Option Payment Install Interm ❑Monthly ❑Quarterly WCP265H WCP265 PTR/SCN/HCF FMV L1 ❑Semi-Annual ❑Annual 12000FCFIN l 3HOLE Analyst Services ❑Other Min.Lease Payment Mode $ 302.06 :MINIMUM LEASE PAYMENT (excl.ofapplic.taxes) ❑Advance ❑Arrears Price Information ❑ Adjustment Period Period A-Mos.Affected: Period B-Mos.Affected: Periodic Base Charge $ 302.06 Periodic Base Charge Periodic Base Charge $ Print Charge Meter 1: Print Charge Mete!2 ;; Print Charge Meter 1: Prints I - + �a 0.0060 Prints I Prints I - $ Prints - Prints Prints - Prints - Prints Prints - Print Charge Meter 2: Print Charge Mete Print Charge Meter 2: Prints 1'- Prints 1 Prints 1 - Prints - Prints Prints - Periodic Min.#of Prints Periodic Min.#of Prints Periodic Min.#of Prints (based on Meter I Print Charges) (based on Meter 1 Print Charges) (based on Meter I Print Charges) ❑ Purchased Supp lies ❑ Cash ❑ Fin'd ❑ Application Software Reorder# Qty Description rice Software Title ntrial License Fee nual Renewal Fee 1 ❑Cash ❑Finance I0 Surroort Only $ Total Price= Total Initial License Fees= © Trade-In Allowance ❑ K-16 Billing Additional Options(check all that apply) Manufacturer Model/ Final Allowance Suspension ❑Run Length Plan ®Fixed Price Plan Serial# Principal Payment#: (check I as required) ❑per-Foot Pricing CANON PC 6 RE $ Months effected ❑Extended Service Hours: ❑ June only Description: /S 0 mo. ❑ July only ❑Attached Addenda: Total Allowance° ❑ August only Total Allowance Applied to: ❑Trade-In Equip.Balance: ❑ June-July ❑Price of Replcmnl.Equip.: ❑ July-August FOR At iTI IORIZkD I-IQ IN VERNAL USE(.-)N IN WorkshccC D66241 Unit:2 1;24/21107 12:,33:09 www.xerox.com Xerox Form#51860-1(052005) 1242007 Page 2 of 8 GENERAL TERMS: The following terms apply to all lease transactions: additional charge for the replacement product and,except as set forth in the section of this Agreement titled"MAINTENANCE COMPONENT PRICE INCREASES", 1. PRODUCTS. The term"Products"shall refer collectively to all equipment(the there will not be an additional charge for Basic Services during the then-current "Equipment"),software,and supplies ordered under this Agreement. You represent term during which Basic Services are being provided. that the Products are being ordered for your own business use(rather than resale) E. CARTRIDGE PRODUCTS. If Xerox is providing Basic Services for and that they will not be used for personal,household or family purposes. Equipment utilizing cartridges designated by Xerox as customer replaceable units, 2. NON-CANCELABLE LEASE. THIS AGREEMENT IS A LEASE AND IT including copy/print cartridges and xerographic modules or fuser modules CANNOT BE CANCELED OR TERMINATED EXCEPT AS EXPRESSLY ("Cartridges"), you agree to use only unmodified Cartridges purchased directly PROVIDED HEREIN,AND YOUR OBLIGATION TO MAKE ALL PAYMENTS from Xerox or its authorized resellers in the United States and the failure to use DUE OR TO BECOME DUE SHALL BE ABSOLUTE AND UNCONDITIONAL such Cartridges shall void any warranty applicable to such Equipment. AND SHALL NOT BE SUBJECT TO ANY DELAY, REDUCTION, SET-OFF, F. PC/WORKSTATION REQUIREMENTS. In order to receive Basic Services DEFENSE, COUNTERCLAIM OR RECOUPMENT FOR ANY REASON WHATSOEVER, IRRESPECTIVE OF XEROX'S PERFORMANCE OF ITS and/or Software Support for Equipment requiring connection to a PC or OBLIGATIONS HEREUNDER. ANY CLAIM AGAINST XEROX MAY BE workstation,you must utilize a PC or workstation that either(I)has been provided ASSERTED SOLELY AGAINST XEROX IN A SEPARATE ACTION. by Xerox or(2)meets Xerox's published specifications. 3. LEASE COMMENCEMENT,PAYMENT,TAXES&CREDIT HISTORY. G. DELIVERY AND REMOVAL. Xerox will be responsible for all standard delivery and removal charges. You will be responsible for any non-standard A. The lease term for this Agreement shall commence upon installation of the delivery or removal charges incurred. Equipment;provided,however,for customer-installable Equipment,the lease term 5. WARRANTY DISCLAIMER & WAIVERS. XEROX DISCLAIMS, AND for this Agreement shall commence upon delivery the Equipment. YOU WAIVE,THE IMPLIED WARRANTIES OF NON-INFRINGEMENT AND B. Invoices are payable upon receipt and you agree to pay Xerox each Minimum FITNESS FOR A PARTICULAR PURPOSE. The parties intend this Agreement to Lease Payment, all Print Charges and all other sums due ce follows:Xerox o the be a"finance lease"under Article 2A of the Uniform Commercial Code. Except to invoice displays a due date, payment i due and must be received at ro en or the extent expressly provided,herein and to the extent permitted by applicable law, before said due date,or(ii)if the invoice does not display a due date,payment is you waive all rights and remedies conferred upon a lessee by said Article. due and must be received by Xerox no later than thirty(30)days after the invoice date. Restrictive covenants on instruments or documents submitted for or with 6. INTELLECTUAL PROPERTY INDEMNITY. Xerox, at its expense, will payments you send to Xerox will not reduce your obligations. defend you from,and pay any settlement agreed to by Xerox or any final judgment (or,any claim that a Xerox-brand Product infringes a third party's U.S. intellectual in You shall o responsible for any and all applicable Taxes, which will s. property rights, provided you promptly notify Xerox of the alleged infringement included h Xerox's invoice unless you provide proof of your tax exempt status. and permit Xerox to direct the defense. Xerox is not responsible for any non-Xerox "Taxes" shall mean any tax, assessment or charge imposed or collected by any litigation expenses or settlements unless it preapproves them in writing. To avoid governmental entity or any political subdivision thereof, however designated or infringement,Xerox may modify or substitute an equivalent Xerox-brand Product, levied,imposed on this Agreement or the amounts payable[o Xerox by you for the refund the price paid for the Xerox-brand Product(less the reasonable rental value billing of Products, Print Charges, services and maintenance of any kind; Taxes for the period it was available to you),or obtain any necessary licenses. Xerox is include, but are not limited to, sales and use, rental, excise, gross receipts and not liable for any infringement-related liabilities outside the scope of this Section occupational or privilege taxes, plus any interest and/or penalty thereon, but including,but not limited to,infringement based upon a Xerox-brand Product being excluding any personal property taxes and taxes on Xerox's net income. If a taxing modified to your specifications or being used or sold with products not provided by authority determines that Xerox did not collect all applicable Taxes, you shall Xerox. remain liable to Xerox for such additional Taxes. 7. LIMITATION OF LIABILITY. Xerox shall not be liable to you for any direct D. You,to the extent required by applicable law,authorize Xerox(or its agent)to damages in excess of SI0,000 or the amounts paid hereunder,whichever is greater, obtain credit reports,make such other credit inquiries as Xerox may deem necessary and neither party shall be liable to the other for any special, indirect, incidental, at any time, famish payment history information to credit reporting agencies, and consequential or punitive damages arising out of or relating to this Agreement, release to prospective assignees of this Agreement or any rights hereunder credit- whether the claim alleges tortious conduct(including negligence)or any other legal related information Xerox has about you and this Agreement. theory. The above-stated limitation of liability shall not be applicable to any 4. BASIC SERVICES. As a mandatory part of a lease, Xerox (or a designated specific indemnification obligations set forth in this Agreement. Any action you servicer) will provide the following Basic Services under this Agreement(unless take against Xerox must be commenced within two (2)years after the event that you are acquiring Equipment for which Xerox does not offer Basic Services;such caused it. Equipment to be designated as"No Svc."): 8. ASSIGNMENT. A. REPAIRS & PARTS. Xerox will make repairs and adjustments necessary to A If you wish to assign any rights or obligations under this Agreement,you shall keep Equipment in good working order (including such repairs or adjustments provide a written notice to Xerox of such request for consent, with said notice required during initial installation). Parts required for repair may be new, including the name of the proposed assignee. Your request to assign this reprocessed,or recovered. Agreement will be granted by Xerox if (1) you are not in default under this B. HOURS & EXCLUSIONS. Unless otherwise stated, Basic Services will be Agreement or any other agreement with Xerox;(2)the proposed assignee agrees to provided during Xerox's standard working hours (excluding Xerox-recognized the section of this Agreement titled "LEASE COMMENCEMENT, PAYMENT, holidays) in areas within the United States, its territories, and possessions open for TAXES & CREDIT HISTORY" as applicable to it for the purposes of the repair service for the Equipment at issue. You agree to give Xerox reasonable proposed assignment; (3)the proposed assignee meets Xerox's then current credit access to the Equipment. Basic Services shall*cover repairs and adjustments criteria for similar transactions as determined by Xerox in its sole discretion; and, required as a result of normal wear and tear or defects in materials or workmanship (4)you and the proposed assignee execute a writing,in a form acceptable to Xerox, (and shall exclude repairs or adjustments Xerox determines to relate to or be confirming said assignment. Assignment by you requires the written consent of affected by the use of options,accessories,or other connected products not serviced Xerox and may not be accomplished by operation of law. by Xerox, as well as any non-Xerox alterations, relocation, service, supplies, or consumables). You agree to use Equipment in accordance with,and to perform all B. Xerox may assign this Agreement,in whole or in part,to a parent,subsidiary or operator maintenance procedures for Equipment as set forth in, the applicable affiliate of Xerox,or to a person or entity for the purposes of securitizing a pool of manuals provided by Xerox. assets or as pan of a third party financial transaction without prior notice to you; provided, however, any proposed assignment to a person or entity not identified C. INSTALLATION SITE & METER READINGS. The Equipment installation previously in this sentence shall require your prior written consent. In the event of site must conform to Xerox's published requirements throughout the tens of this an assignment permitted by the preceding sentence,Xerox, without notice to you, Agreement. If applicable, you agree to provide meter readings in the manner may release information it has about you related to this Agreement. Each prescribed by Xerox. If you do not provide Xerox with meter readings as required, successive assignee of Xerox shall have all of the rights but none of the obligations Xerox may estimate them and bill you accordingly. of Xerox hereunder. You shall continue to look to Xerox for performance of D. EQUIPMENT REPLACEMENT. If Xerox is unable to maintain the Xerox's obligations, including the provision of Basic Services, and you hereby Equipment as described above, Xerox will, as your exclusive remedy for Xerox's waive and release any assignees of Xerox from any such claim relating to or arising failure to provide Basic Services, replace the Equipment with an identical product from the performance of Xerox's obligations hereunder. You shall not assert any or, at Xerox's option, another product of equal or greater capabilities. If a defense, counterclaim or setoff that you may have or claim against Xerox against replacement product is provided pursuant to this Section, there will not be an Xerox Form#51860t&c(05/2005) 1/24/2007 Page 3 of 8 any assignees of Xerox. In the event of an assignment by Xerox, you shall remit 14. EQUIPMENT STATUS. Unless you are acquiring Previously Installed payments due in accordance with remittance instructions of the assignee. Equipment, Equipment will be either (a) "Newly Manufactured", which may 9. MINIMUM LEASE PAYMENTS, Each Minimum Lease Payment (which contain some recycled components that are reconditioned; (b) "Factory Produced may be billed on more than one invoice)includes a Periodic Base Charge,and may New Model",which is manufactured and newly serialized at a Xerox factory,adds include a Periodic Minimum Number of Prints. The Minimum Lease Payments, functions and features to a product previously disassembled to a Xerox along with any additional Print Charges for prints made in excess of the Minimum predetermined standard, and contains both new components and recycled Number of Prints,cover your cost for the use of the Equipment and its maintenance components that are reconditioned; or, (c) "Remanufactured", which has been (provided as Basic Services). factory produced following disassembly to a Xerox predetermined standard and 10. contains both new components and recycled components that are reconditioned. increase that amount of the Minimum Lease Payment and Print Charges you are MAINTENANCE COMPONENT PRICE INCREASES. Xerox may annually 15. LEASE OPTIONS. The following options are available for Equipment subject charged for maintenance of the Equipment (the"Maintenance Component"), each to this Agreement. such increase not to exceed 10%. (For state and local government customers,this A. PURCHASE OPTION. If not in default,you may purchase the Equipment,"AS adjustment shall take place at the commencement of each of your annual contract IS, WHERE-IS" and WITHOUT ANY WARRANTY AS TO CONDITION OR cycles.) VALUE: (i)at the end of the lease term for the Purchase Option indicated on the 11. TITLE, RISK & RELOCATION. Title to the Equipment shall remain with face of this Agreement(i.e. either a set dollar amount or the Fair Market Value of Xerox until you exercise your option to purchase it. Until you exercise your option the Equipment at the lease term's conclusion J"FMV"]),plus all applicable Taxes, to purchase the Equipment,you agree that:(a)it shall remain personal property;(b) or(ii)any time during the lease term by paying: (1)all amounts then due;(2)the you will not attach an of it as a fixture[o an real estate; c remaining Minimum Lease Payments in the Agreement's term less any unearned y y y O you will not pledge, finance, maintenance, and supply charges (as reflected on the lessors books and sub-lease or part with possession of it or file or permit to be filed any lien against it; records); (3) a reasonable disengagement fee calculated by Xerox that will not and,(d)you will not make any permanent fire alterations p it. The risk of lass due to exceed fifteen percent(15%)of the amount in(2)above(said amount is available your fault or negligence, as well as theft, Ere or disappearance, shall pass to you upon shipment from a Xerox controlled facility. The risk of loss due to all other from Xerox upon request); (4) the applicable Purchase Option; and (5) all causes shall remain with Xerox unless and until you exercise your option to applicable Taxes. purchase the Equipment. Until title passes to you, all Equipment relocations must B. RENEWAL. Unless either party provides notice at least thirty(30)days before be arranged(or approved in advance)by Xerox and shall be at your expense. While the end of the lease term of its intention not to renew this Agreement, it will be Equipment is being relocated, you are responsible for all payments required to renewed automatically on a month-to-month basis at the same price, terms and Xerox under this Agreement. Equipment cannot be relocated outside of the United conditions and billing frequency as the original Agreement. During this renewal States, its territories or possessions until you have exercised the Purchase Option period, either party may terminate this Agreement upon at least thirty (30) days indicated in this Agreement.If you acquire title to the Equipment,you must comply notice. with all applicable laws and regulations regarding the export of any commodity, C. LEASE TERMINATION. Upon termination pursuant to B.above, and if you technology and/or software. All parts/materials replaced, including as part of an have not purchased the Equipment, you shall make the Equipment available for upgrade,will become Xerox's property. removal by Xerox when requested to do so by Xerox and,at the time of removal, 12. DEFAULT&REMEDIES;LATE CHARGES&COLLECTION COSTS. the Equipment shall be in the same condition as when delivered(reasonable wear A. For any payment not received by Xerox within ten(10)days of the due date as and tear excepted),together with any related software. set forth herein,Xerox may charge,and you agree to pay,a late charge equal to the 16. PROTECTION OF XEROX'S RIGHTS. You hereby authorize Xerox or its higher of five percent(5%)of the amount due or$25(not to exceed the maximum agents to file,by any permissible means,financing statements necessary to protect amount permitted by law)as reasonable collection costs. Xerox's rights as the Equipment Lessor. Xerox, on your behalf and at your B. You will be in default under this Agreement if(1)Xerox does not receive any expense,may take any action required to be taken by you under this Agreement that payment within fifteen (I5) days after the date it is due or(2) if you breach any you fail to take. other obligation hereunder. If you default,Xerox, in addition to its other remedies 17. REPRESENTATIONS, WARRANTIES & COVENANTS. Each party (including the cessation of Basic Services), may require immediate payment, as represents [hat, as of the date of this Agreement, i[ has the lawful power and liquidated damages for loss of bargain and not as a penalty,of (a)all amounts then authority m enter into this Agreement, the individuals signing this Agreement are due,plus interest cn all amounts due from the due date until paid at the rate of one duly authorized to do so on its behalf and,by entering this Agreement, it will not and one-half percent (1.5%) per month (not to exceed the maximum amount violate an law or other agreement to which it is a permitted by law);(b)the remaining Minimum Lease Payments in the Agreement's y g Party. You are not aware of anything that will have a material negative effect on your ability to satisfy your term less any unearned finance, maintenance, and supply charges (as re0ec[ed on payment obligations under this Agreement and all financial information you have the lessor's books and records); (c) a reasonable disengagement fee calculated by provided, or will provide, to Xerox is true and accurate and Xerox that will not exceed fifteen percent(15%)of the amount in(b) above(said P P provides a good representation of your financial condition. Each party agrees that it will promptly amount is available from Xerox upon request);and(d)all applicable Taxes. You notify the other party in writing of a change in ownership,if it relocates its principal also shall either (I) make the Equipment available for removal Xerox when place of business or changes the name of its business. requested to do so by Xerox and,at the time of removal,the Equipment shall be in the same condition as when delivered(reasonable wear and tear excepted),together 18. NOTICES. Notices must be in writing and will be deemed given five(5)days with any related software,or(2)purchase the Equipment"AS IS,WHERE IS"and after mailing, or two (2) days after sending by nationally recognized overnight WITHOUT ANY WARRANTY AS TO CONDITION OR VALUE by paying courier,to the other party's business address,or to such other address designated by Xerox the Purchase Option and all applicable Tues. Xerox's decision to waive or either party to the other by written notice given pursuant to this sentence. The term forgive a particular default shall not prevent Xerox from declaring any other "business address"shall mean,for you,the"Bill to'address listed on the first page default. In addition,if you default under this Agreement,you agree to pay all of the of this Agreement and,for Xerox,our inquiry address set forth on the most recent costs Xerox incurs to enforce its rights against you,including reasonable attorneys' invoice to you. fees and actual costs. 19. FORCE MAJEURE. Xerox shall not be liable to you during any period in 13. CARTRIDGES. Cartridges packed with Equipment and replacement which its performance is delayed or prevented, in whole or in part, by a Cartridges may be new, remanufactured or reprocessed. Remanufactured and circumstance beyond its reasonable control, which circumstances include, but are reprocessed Cartridges meet Xerox's new Cartridge performance standards and not limited to,the following: act of God(e.g.,flood,earthquake,wind);fire;war; contain new and/or reprocessed components. To enhance print quality, the act of a public enemy or terrorist;act of sabotage;strike or other labor dispute;riot; Cartridge(s) for many models of Equipment have been designed to cease misadventure of the sea; inability to secure materials and/or transportation; or, a functioning at a predetermined point. In addition, many Equipment models are restriction imposed by legislation,an order or a rule or regulation of a governmental designed to function only with Cartridges that are newly manufactured original entity. If such a circumstance occurs, Xerox shall undertake reasonable action to Xerox Cartridges or with Cartridges intended for use in the U.S. Equipment notify you of the same. configuration that permits use of non-newly manufactured original Xerox 20. MISCELLANEOUS. This Agreement constitutes the entire agreement as to its Cartridges may be available from Xerox at an additional charge. Cartridges sold as subject matter, supersedes all prior and contemporaneous oral and written Environmental Partnership("EP")Cartridges remain the property of Xerox. You agreements, and shall be construed under the laws of the State of New York agree that you shall return all EP Cartridges and may return other Cartridges to (without regard to conflict-of-law principles). You agree to the jurisdiction and Xerox, at Xerox's expense when using Xerox-supplied shipping labels, for venue of the federal and state courts in Monroe County,New York.In any action to remanufacturing once such Cartridges cease functioning. enforce this Agreement,the parties agree to waive their right to a jury trial. If a Xerox Form#518601&c(05/2005) 1/24/2007 Page 4 of 8 court finds any term of this Agreement to be unenforceable,the remaining terms of A. Xerox will assure that Base and Application Software performs in material this Agreement shall remain in effect. Both parties may retain a reproduction(e.g., conformity with its user documentation and will maintain a toll-free hotline during electronic image, photocopy, facsimile) of this Agreement which shall be standard business hours to answer related questions. admissible in any action to enforce it,but only the Agreement held by Xerox shall B. Xerox may make available new releases of the Base or Application Software be considered an original. Xerox may accept this Agreement either by its that primarily incorporate coding error fixes and are designated as "Maintenance authorized signature or by commencing performance (e.g., Equipment delivery, Releases". Maintenance Releases are provided at no charge and must be initiating Basic Services,etc.). All changes to this Agreement must be made in a implemented within six(6)months after being made available to you. Each new writing signed by both parties;accordingly,any terms on your ordering documents Maintenance Release shall be considered Base or Application Software governed shall be of no force or effect. The following four sentences control over every other by these Software Terms. New releases of the Base or Application Software that pan of this Agreement and over all other documents now or later pertaining to this are not Maintenance Releases, if any, may be subject to additional license fees at Agreement. We both intend to comply with applicable laws. In no event will Xerox's then-current pricing and shall be considered Base or Application Software Xerox charge or collect any amounts in excess of those allowed by applicable law. governed by these Software Terms(unless otherwise noted). Xerox will not be in Any part of this Agreement that would, but for this Section, be read under any breach of its software support obligations hereunder if, in order to implement, in circumstances to allow for a charge higher than that allowed under any applicable whole or in part,a new release of Base or Application Software provided or made legal limit,is limited and modified by this Section to limit the amounts chargeable available to you by Xerox,you must procure,at your expense,additional hardware under this Agreement to the maximum amount allowed under the legal limit If,in and/or software from Xerox or any other entity. You agree to return or destroy all any circumstances, any amount in excess of that allowed by law is charged or prior releases. received, any such charge will be deemed limited by the amount legally allowed C. Xerox will use reasonable efforts, either directly and/or with its vendors, to and any amount received by Xerox in excess of that legally allowed will be applied resolve coding rrors or provide workarounds or patches, by us to the payment of amounts legally owed under this Agreement,or refunded to g p P provided you report problems as specified by Xerox. you. D. Xerox shall not be obligated(I)to support any Base or Application Software SOFTWARE TERMS: The following additional terms apply only to transactions that is two or more releases older than Xerox's most current release or(2)to remedy covering Application Software and/or Xerox-brand Equipment: coding effors if you have modified the Base or Application Software. 21. SOFTWARE LICENSE. The following terms apply to copyrighted software E. For Application Software, Xerox may annually increase the Annual Renewal and the accompanying documentation, including, but not limited to, operating and Support-Only Fees,each such increase not to exceed 10%. (For state and local- system software, provided with or within the Xerox-brand Equipment acquired government customers, this adjustment shall take place at the commencement of hereunder("Base Software")as well as software specifically set out as"Application each of your annual contract cycles.) Software" on the face of this Agreement. This license does not apply to any 23. DIAGNOSTIC SOFTWARE. Software used to maintain the Equipment and/or Diagnostic Software or to any software / documentation accompanied by a diagnose its failures or substandard performance (collectively "Diagnostic clickwrap or shrinkwrap license agreement or otherwise made subject to a separate Software")is embedded in,resides on,or may be loaded onto the Equipment. The license agreement. Diagnostic Software and method of entry or access to it constitute valuable trade A. Xerox grants you a non-exclusive, non-transferable license to use the Base secrets of Xerox. Title to the Diagnostic Software shall at all times remain solely Software within the United States, its territories, and possessions (the "United with Xerox and/or Xerox's licensors. You agree that (a) your acquisition of the States") only on or with the Equipment with which (or within which) it was Equipment does not grant you a license or right to use the Diagnostic Software in delivered. For Application Software, Xerox grants you a non-exclusive, non- any manner,and(b)that unless separately licensed by Xerox to do so,you will not transferable license to use this software within the United States on any single unit use, reproduce,distribute, or disclose the Diagnostic Software for any purpose(or of equipment for as long as you are current in the payment of any indicated allow third parties to do so). You agree at all times(including subsequent to the software license fees (including any Annual Renewal Fees). You have no other expiration of this Agreement)to allow Xerox to access,monitor,and otherwise take rights to the Base or Application Software and, in particular, may not (1) steps to prevent unauthorized use or reproduction of the Diagnostic Software. distribute, copy,modify, create derivatives of, decompile, or reverse engineer this software; (2) activate any software delivered with or within the Equipment in an GOVERNMENT CUSTOMER TERMS. The following additional terms apply unactivated state; or, (3) allow others to engage in same. Title to the Base and only to lease transactions with state and local government customers: Application Software and all copyrights and other intellectual property rights in it 24. REPRESENTATIONS&WARRANTIES,FUNDING,TAX TREATMENT& shall at all times reside solely with Xerox and/or its licensors (who shall be PAYMENT. considered third-party beneficiaries of this Agreement's software and limitation of A REPRESENTATIONS&WARRANTIES. You hereby represent and warrant, liability provisions). Base and Application Software may contain,or be modified to as of the date of this Agreement, [hat (1) you are a State or a fully constituted contain, computer code capable of automatically disabling proper operation or political subdivision or agency , t the State u which you are located and are functioning sothe Equipment. Such disabling code may be activated if. (a)Xerox authorized to enter into,and carry out,your obligations under this Agreement and is denied reasonable access to d o Base fa Application Software to periodically reset any other documents required to be delivered in connection with the Agreement such code; ns you are notified ex i default under any[ern of this Agreement;or, the "Documents' (c)your license is terminated or expires. (collectively, '); (2) the Documents have been duly authorized, executed and delivered by you in accordance with all applicable laws, rules, B. Xerox may terminate your license for any Base Software (I) immediately if ordinances and regulations (including, but not limited to, all applicable laws you no longer use or possess the Equipment or are a lessor of the Equipment and governing open meetings,public bidding and appropriations required in connection your first lessee no longer uses or possesses it,or(2)upon the termination of any with this Agreement and the acquisition of the Equipment) and are valid, legal, agreement under which you have rented or leased the Equipment. binding agreements, enforceable in accordance with their terms and the person(s) C. If you transfer possession of the Equipment after you obtain title to it,Xerox signing the Documents have the authority to do so, are acting with the full will offer the transferee a license to use the Base Software within the United States authorization of your governing body and hold the offices indicated below their on or with it,subject to Xerox's then-applicable terms and license fees,if any,and signatures, each of which are genuine; (3) the Equipment is essential to the provided the transfer is not in violation of Xerox's rights. immediate performance of a governmental or proprietary function by you within the D. Xerox warrants that the Base and Application Software will perform in material scope of your authority and shall be used during the lease term only by you and conformity with its user documentation for a ninety(90)day period from the date it only to perform such function; and, (4)your obligations to remit payments under is delivered or, for software installed by Xerox, the date of software installation. this Agreement constitute a current expense and not a debt under applicable state Neither Xerox nor its licensors warrant that the Base or Application Software will law and no provision of this Agreement constitutes a pledge of your tax or general be free from effors or that its operation will be uninterrupted, revenues and any provision that is so construed by a court of competent jurisdiction 22. SOFTWARE SUPPORT. During the period that Xerox (or a designated is void from the inception of this Agreement, servicer)provides Basic Services for the Equipment but in no event longer than five B. FUNDING. You represent and warrant that all payments due and to become (5)years after Xerox stops taking orders from customers for their acquisition of the due during your current fiscal year are within the fiscal budget of such year and are subject model of Equipment, Xerox (or a designated servicer) will also provide included within an unrestricted and unencumbered appropriation currently available software support for the Base Software under the following terms. For Application for the lease/purchase of the Equipment, and that it is your intent to use the Software licensed pursuant to this Agreement,Xerox will provide software support Equipment for the entire lease term and to make all payments required under this under the following terms provided you are current in the payment of all Initial Agreement. In the event that(1)through no action initiated by you your legislative License and Annual Renewal Fees(or,for programs not requiring Annual Renewal body does not appropriate funds for the continuation of this Agreement for any Fees,the payment of the Initial License Fee and the annual"Support Only"Fees). fiscal year after the first fiscal year and has no funds to do so from other sources, and(2)you have made a reasonable but unsuccessful effort to find a creditworthy Xerox Form#51 8601&c(05/2005) 1242007 Page 5 of 8 assignee acceptable to Xerox in its sole discretion within your general organization rights it has to these products(which rights shall revert to Xerox if you breach this who can continue this Agreement,this Agreement may be terminated.To effect this Agreement). You agree (1) that these products are not covered by Xerox's termination,you shall,thirty(30)days prior to the beginning of the fiscal year for obligation to provide Basic Services;(2)to maintain a service agreement for these which your legislative body does not appropriate funds for such upcoming fiscal products with a service provider acceptable to Xerox throughout this Agreement's year, send Xerox written notice stating that your legislative body failed to tern; (3) to pay all personal property taxes related to these products; and (4) to appropriate funds and that you have made the required effort to find an assignee. assign to Xerox any rights you have to these products until title passes from Xerox Your notice must be accompanied by payment of all sums then owed through the to you(which,subject to any software licenses surrounding the acquisition of these current year to Xerox under this Agreement and must certify that the canceled products, shall occur when you obtain title to all Xerox-brand Equipment covered Equipment is not being replaced by equipment performing similar functions during by this Agreement). the ensuing fiscal year. In addition, you agree at your expense to return the 28 FINANCED SOFTWARE TOTAL. If this option has been selected,the initial Equipment in good condition to a location designated by Xerox and that, when license fees for any Application Software set forth in this Agreement shall be paid returned,the Equipment will be free of all liens and encumbrances. You will then for through your Minimum Lease Payments. If you breach this license or any of be released from your obligations to make any further payments to Xerox beyond your obligations regarding the Equipment,the full amount of the initial license fees those due for the current fiscal year(with Xerox retaining all sums paid to date). shall be immediately due and payable. C. TAX TREATMENT. This Agreement has been accepted on the basis of your representation that Xerox may claim any interest paid by you as exempt from 29. FINANCED SUPPLIES TOTAL. If this option has been selected,the cost of federal income tax under Section 103(c)of the Code. You agree to comply with the any supplies you have purchased under this Agreement shall be paid for through information reporting requirements of Section 149(e)of the Code.Such compliance your Minimum Lease Payments.If you breach any of your obligations regarding the shall include, but not be limited to, the execution of 803" or 8038-GC Equipment,the full amount of the supply costs shall become immediately due and Information Returns. You hereby appoint Xerox as your agent to maintain, and payable. Xerox agrees to maintain,or cause to be maintained,a complete and accurate record 30. REFINANCE OF PRIOR AGREEMENT. If this option has been selected,the of all assignments of this Agreement in form sufficient to comply with the book balance of your prior indicated agreement with Xerox or a third party shall be paid entry requirements of Section 149(a) of the Code and the regulations prescribed for through your Minimum Lease Payments. If your prior agreement is with a third thereunder from time to time. Should Xerox lose the benefit of this exemption as a party,you hereby acknowledge that you have the right to terminate the agreement result of your failure to comply with or be covered by Section 103(c) or its and agree to provide a statement from the third-party identifying the equipment at regulations, then, subject to the availability of funds and upon demand by Xerox, issue and the amount to be paid off(as well as a statement from you identifying the you shall pay Xerox an amount equal to its loss in this regard. At the time of payee and mailing address for your payoff check). If your prior agreement was execution of this Agreement,you shall provide Xerox with a properly prepared and with Xerox,the use of this refinance option shall render your prior agreement null executed copy of US Treasury Form 8038 or 8038-GC. and void. If you breach this Agreement,the full amount of your prior agreement D. PAYMENT. Your payment is due within thirty(30)days of our invoice date, balance shall be immediately due and payable. ADDITIONAL TERMS. The following additional terms apply only to the extent 31. ADJUSTMENT PERIOD. If this option has been selected, your Minimum that you have agreed to one or more of the options described below: Lease Payment and/or Print Charges shall be adjusted in accordance with the 25. CONSUMABLE SUPPLIES INCLUDED IN BASE/PRINT CHARGES. If information contained in the Adjustment Period portion of this Agreement; as a this option has been selected,Xerox(or a designated servicer)will provide you with result, your initial payment(s) shall be different from those payable during the black toner(excluding highlight color toner),black developer,copy Cartridges,and, balance of this Agreement. if applicable, fuser ("Consumable Supplies") throughout the term of this 31 K-16 BILLING SUSPENSION. If this option has been selected, the Agreement. For full-color Equipment,Consumable Supplies shall also include,as Maintenance Component of your Minimum Lease Payment and Print Charges will applicable,color toner and developer. You agree that the Consumable Supplies are be suspended each year during the months indicated. During these months, you Xerox's property until used by you,that you will use them only with the Equipment, agree that you will not use the Equipment and that Xerox shall not be responsible that you will return all Cartridges to Xerox for remanufacturing once they have for providing Basic Services on it. If Xerox provides Basic Services during the K- been ran to their cease-function point (at Xerox's expense when using Xerox- 16 Billing Suspension period,you will be billed at Xerox's then-current Time and supplied shipping labels), and that at the end of the term of this Agreement either Materials("T&M")rates for such Basic Services. (a)you will return any unused Consumable Supplies to Xerox (at Xerox's expense 33. TRADE-IN EQUIPMENT. If this option has been selected,you are providing when using Xerox-supplied shipping labels)or (b) destroy them in a manner equipment to Xerox as part of this Agreement ("Trade-In Equipment") and the permitted by applicable law. Should your use of Consumable Supplies exceed following shall apply: Xerox's published yields for these items by more than 10%,you agree that Xerox A TITLE TRANSFER. You warrant that you have the right to transfer title to the shall have the right to charge you for any such excess usage. When requested by Trade-In Equipment and that it has been installed and performing its intended Xerox,you agree to provide meter readings and inventory of Consumable Supplies shall Equipment u function. Title and risk of loss to the Trade-In E i ass to Xerox when in your possession. Xerox removes it from your premises. q p p 26. REPLACEMENT/MODIFICATION OF PRIOR XEROX AGREEMENT. If B. CONDITION. You warrant that the Trade-In Equipment is in good working this option has been selected, this Agreement will replace or modify a prior order,has not been modified from its original configuration(other than by Xerox), agreement between you and Xerox covering the specified equipment. If it is a and has a UL label attached. You agree to maintain the Trade-In Equipment at its replacement agreement, the prior agreement shall be null and void. If it is a present site and in substantially its present condition until removed by Xerox. modification, the prior agreement shall remain in effect except that any terms C. ACCRUED CHARGES. You agree[o pay all accrued charges for the Trade-In presented in this modification agreement that conflict with,or are additive to,any of Equipment(up to and including payment of the Final Principal es for th Number) the terms in the prior agreement shall take precedence over the terms it the prior and to pay all maintenance, administrative, supply and finance charges for this agreement for the balance of the Agreement. In a addition,modifications requiring a equipment through the date title passes to Xerox. reamortiza[ion of your payments may include aone-time administrative/processing charge that will appear on your first bill under this revised arrangement 34. RUN LENGTH PLAN. If this option has been selected,the first ten prints of 27. XEROX AS FINANCIAL INTERMEDIARY. If this option has been selected, each original (per ran)are recorded and billed on both meters with all subsequent you are leasing specifically identified products that were selected by you and that prints recorded and billed on Meter A only. are not sold by Xerox in the normal course of its business. If you have signed a 35. FIXED PRICE PLAN. If this option has been selected,Xerox will forego its purchase contract for such products, by signing this Agreement you assign your right to increase the Maintenance Component throughout the initial term of this rights but none of your obligations under such purchase contract to Xerox. With Agreement. regard to these products, you agree that Xerox is leasing them to you "AS IS, 36. PER-FOOT PRICING. If this option has been selected,all Print Charges will WHERE IS"and that XEROX HAS NOT MADE,AND YOU HEREBY WAIVE, be billed on a per-foot basis,with each linear or square foot,as applicable,equal to ANY EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES one print. WHATSOEVER, INCLUDING, WITHOUT LIMITATION, (a) ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR PARTICULAR 37. EXTENDED SERVICE HOURS. If this option has been selected,Xerox will PURPOSE OR NON-INFRINGEMENT, and (b) ANY REPRESENTATION OR provide Basic Services during the hours indicated, with the first number WARRANTY REGARDING THE PRODUCTS' SUITABILITY, DESIGN, establishing the number of eight-hour shifts covered and the second establishing the CONDITION, DURABILITY, OPERATION, QUALITY OF MATERIALS OR days of the week(e.g.,2 x 6 would provide service from 8:00 A.M.to 11:59 P.M., WORKMANSHIP, OR COMPLIANCE WITH SPECIFICATIONS OR Monday through Saturday). The cost of this enhanced service coverage will be APPLICABLE LAW. Xerox assigns to you,to the extent assignable,any warranty Xerox Form#51860t&c(05/2005) 1/24/2007 Page 6 of 8 billed separately and,as such,is not included in your Minimum Lease Payment or Print Charges. 38. ATTACHED ADDENDA. If this option has been selected,you acknowledge that one or more specified addenda(as indicated)have been provided to you. These addenda, which provide additional terms relevant to the transactions covered hereunder,are hereby fully integrated into this Agreement. 39. NEGOTIATED CONTRACT. If this option has been selected, the Products identified in this Agreement are subject solely to the terms contained in(a)either (1)the identified Negotiated Contract for a lease transaction or(2) if there are no such terms in the Negotiated Contract,the terms set forth in this Agreement,and,if applicable and notwithstanding anything to the contrary set forth in the Negotiated Contract, (b) the "Additional Terms" portion of this Agreement for the selected option or options to the extent the subject matter of any such selected option is not addressed in the Negotiated Contract. 40, DSA CONTRACT NUMBER. If a DSA Contract Number has been inserted, the Equipment and/or software identified in this Agreement are associated with the Services being provided under the referenced Document Services Agreement ("DSA"), but such Equipment and/or software are subject solely to the terms contained in this Agreement. For customer support tools to manage your account online, visit your Account Management link @ www.xerox.com Xerox Form#51860t&c(0512005) 1124/2007 Page 7 of 8 ' • I I iO East Main Street Medford, Oil 97504 Serving Southern Oregon for over 35 Years. January 24, 2007 To Whom It May Concern: Superior Office Systems, an authorized sales agency for the Xerox Corporation, acknowledges that the order agreement for the City of Ashland, Public Works Department (Worksheet D66241), is under review by the Ashland City Council. Pending the decision by the City Council, the order agreement can be cancelled at anytime prior to March 15, 2007 at 12:00 PM. Signed, Ted Darnall President, Superior Office Systems THE UMT COMPANY XEROX CITY OF ASHLAND Council Communication Council Liaisons 2007 Meeting Date: February 6, 2006 Primary Staff Contact: John Morrison, Mayor Department: Administration E-mail: mordsoj @ashland.or.us Contributing Departments: none Secondary Staff Contact: Martha Bennett Approval: Martha Be a Estimated Time: Consent Statement: Attached are the new Council liaison appointments to City boards and commissions, effective immediately. Background: Each year the Council liaisons to the City boards and commissions are selected by the Mayor, and approved by the Council. The appointments will be effective immediately. Related City Policies: N/A Council Options: N/A Staff Recommendation: Approval of Liaisons as listed. Potential Motions: None. Attachments: List of 2007 Council Appointments �r, 2007 Council Liaison Appointments Airport Hospital Board Current: Russ Silbiger Current: John Morrison 2007: Russ Sulbi er 2007: John Morrison Audit Committee Housing Current: John Morrison Current: Cate Hartzell 2007: John Morrison 2007: Alice Hardest Band Board Parks & Recreation Current: Alice Hardesty Current: Eric Navickas 2007: Alice Hardesty 2007:Eric Navickas Bike & Pedestrian Planning Current: David Chapman Current: Kate Jackson 2007: David Chapman 2007: Cate Hartzell Conservation Public Art Current: Eric Navickas Current: Eric Navickas 2007: David Chapman 2007: Alice Hardesty Forest Lands Traffic Safety Current: Cate Hartzell Current: Alice Hardesty 2007: Eric Navickas 2007: Russ Silbiger Historic Tree Current: Alice Hardesty Current: David Chapman 2007: Eric Navickas 2007: Kate Jackson RVCOG RVMPO Current: Russ Silbiger Current: John Morrison 2007: Russ Silbiger 2007: John Morrison RVACT SOREDI Current: John Morrison Current: Kate Jackson 2007: John Morrison 2007: Kate Jackson Chamber of Commerce County Taskforce on Homelessness Current: John Morrison Current: Cate Hartzell 2007: Cate Hartzell 2007: Cate Hartzell. Woodlands and Trails Association Bear Creek Greenway Current: David Chapman Current: David Chapman 2007: David Chapman 2007: David Chapman Regional Problem Solving(RPS) Current: Kate Jackson 2007: Kate Jackson 2007 Council Liaison Appointments Airport Hospital Board Current: Russ Silbiger Current: John Morrison 2007: Russ Sulbi er 2007: John Morrison Audit Committee Housing Current: John Morrison Current: Cate Hartzell 2007: John Morrison 2007: Alice Hardest Band Board Parks & Recreation Current: Alice Hardesty Current: Eric Navickas 2007: Alice Hardesty 2007:Eric Navickas Bike & Pedestrian Planning Current: David Chapman Current: Kate Jackson 2007: David Chapman 2007: Cate Hartzell Conservation Public Art Current: Eric Navickas Current: Eric Navickas 2007: David Chapman 2007: Alice Hardesty Forest Lands Traffic Safety . Current: Cate Hartzell Current: Alice Hardesty 2007: Eric Navickas 2007: Kate Jackson Historic Tree Current: Alice Hardesty Current: David Chapman 2007: Eric Navickas 2007: Russ Silbiger RVCOG RVMPO Current: Russ Silbiger Current: John Morrison 2007: Russ Silbiger 2007: John Morrison RVACT SOREDI Current: John Morrison Current: Kate Jackson 2007: Cate Hartzell 2007: Kate Jackson Chamber of Commerce County Taskforce on Homelessness Current: John Morrison Current: Cate Hartzell 2007: John Morrison 2007: Cate Hartzell. Woodlands and Trails Association Bear Creek Greenway Current: David Chapman Current: David Chapman 2007: David Chapman 2007: David Chapman Regional Problem Solving(RPS) Current: Kate Jackson 2007: Kate Jackson CITY OF • -ASHLAND Council Communication Appointment of Judge Pro Tem Meeting Date: February 6, 2007 Primary Staff Contact: Martha Bennett Department:Administration E-mail: bennettm @ashland.or.us Contributing Departments r�ylt Secondary Staff Contact:Judge Pamela B. Turner Approval: Martha Ben ne I J\ Estimated Time: Consent Statement: A request came from Ashland Municipal Judge Pamela B. Turner asking for Judge Allen Drescher to be appointed as an Ashland Municipal Judge Pro Tem. Under AMC, Section 2.28.200 the mayor, with confirmation by the council, may appoint a Judge Pro Tem. Staff Recommendation: Approve appointment of Judge Allen Drescher as Ashland Municipal Judge Pro Tem. Background: The City of Ashland Municipal Court typically has two Judge Pro Terns to call upon. Barbara Jarvis has served since 1990 and is able to continue. The election of Pamela B. Turner to Municipal Court Judge created a vacancy. Related City Policies: AMC § 2.28.200 Council Options: Approve appointment of Judge Allen Drescher as Judge Pro Tem. Decline approval of appointment of Judge Allen Drescher as Judge Pro Tem. Potential Motions: None. Attachments: . Request Letter from Judge Turner Copy of AMC § 2.28.200 PER CITY OF ASHLAND p MDT JAN 2 4 2007 January 23, 2007 By Dear Mayor Morrison, Pursuant to Ashland Municipal Code, Section 2.28.200 (attached), I would like to recommend that former Ashland Municipal Judge Allen Drescher be appointed by you, with confirmation by the City Council, as an Ashland Municipal Judge Pro Tem. The Court has traditionally had two Pro Terns to call on. Barbara Jarvis has served since 1990 and is able to continue. My election has created a vacancy and I am pleased to report Allen Drescher is willing to serve subject to your approval and that of the Council. Very Truly Yours, per- 8 Pamela B. Turner Ashland Municipal Judge AshlandMunicipal Court phone:541382-5214 1175 East Main Street Fax;5800-73 -290 Ashland,Oregon 97520 TTY: 800-735.2900 w .ashland.or.us Section 2.28.200 Municipal Judge--Pro tempore. The Mayor, with confirmation by the City Council, shall appoint a Municipal Judge Pro tempore, who shall serve as Municipal Judge in the absence from the City of the elected Municipal Judge, or due to the inability of said elected Judge to serve. The Municipal Judge shall have a right to submit recommendations as to the appointment or dismissal of the Municipal Judge Pro tempore, however, this shall not limit the Mayor's power to appoint or dismiss. The Municipal Judge Pro tempore shall be employed at the expense of the City upon such terms as are prescribed by the Council or City Administrator. (Ord. 1399 S19, 1965; Ord. 2266 S5, 1983; Ord. 2268, 1983) Page 1 of 1 CITY OF ASHLAND Council Communication Approval of a Common Boundary Line Meeting Date: February 6,2007 Primary Staff Contact: Paula Brown,488-5587 41-� Department: Public Works/En .neering E-mail: brownp @ashland.or.us Contributing Departments: Secondary Staff Contact:Jim Olson,488-534 Approval: Martha Benne E-mail:olsonj @ashland.or.us Estimated Time: Consent Agenda Statement: Approval of the attached Boundary Line Agreement would legally adopt a common boundary line between properties owned by the City at the Service Center at 90 North Mountain Avenue and by Stephen & Melanie, LLC at 66 North Mountain Avenue. Staff Recommendation: Staff recommends approval of the Boundary Line Agreement. This agreement would legalize a portion of the boundary that was established by Survey No. 8660 which was filed in 1980. This boundary line was accepted by property owners at that time, but was never codified by a formal legal document. The boundary line established in 1980 is the boundary to which all owners and the City have relied upon for the construction of boundary fences and other improvements. Background: Prior to the construction of the City Service Center complex located at 90 N. Mountain Avenue, the Engineering Department conducted a boundary survey to determine and monument to limits of this city-owned property. A 411 foot long portion of the westerly boundary abuts the easterly boundary line of five privately owned parcels. During the course of the survey, the owner of the most southerly of these five lots contested the placement of the boundary stating that the most southerly corner of this line should be located two feet further to the east. Rather than continue to debate the true location of the property corner, the City agreed to shift the line to the east, a move that was supported by the remaining four lot owners. The survey was completed and filed with the boundary line being labeled as a proposed boundary agreement line, however, the agreement was never formalized. Stephen Wolf and Melanie Smith have acquired one of the lots abutting this boundary line and are creating the North Mountain Avenue Condominiums. To complete the plat of the condominium it will be necessary to legalize this common boundary by processing a boundary line agreement. Related City Policies: The Legal Department has determined that the most efficient and least costly method of resolving a disputed boundary line is through the use of a boundary line agreement where each party agrees upon a commonly described boundary and releases any interest that each party might have on the neighboring property. G:\pub-wrks\eng\dept-admin\SURVEYOR\39 I I OBC 5100 City and Stephen&Melanie BLA CC 107AM W=, Council Options: Council may approve this attached boundary line agreement and authorize the mayor and recorder to sign the agreement, or; Council may postpone approval of the agreement pending receipt of further information to be provided by staff. Potential Motions: Council may move to approve the boundary line agreement, or; Council may move to postpone approval of the agreement. Attachments: Photos Boundary Line Agreement Vicinity Map Detail Map e G 4 t. . . ,;r i wrtti Property G:\pub-w ks\eng\dept-admin\SURVEYOR\39 I IOBC 5100 City and Stephen&Melanie BLA CC 1 07.doc- =, Y 1 n i �• i�� x 4r f t k- Die :a) 5 ..., n h.n�, �•.�'i� �,�1'<t��'�t A l ✓�' rl� O' IC II City and Stephen&Melanie BLA CC 107.doc Document Type: Boundary Line Agreement . Parties: City of Ashland Stephen&Melanie,LLC Return Documents: Barbara Christensen City Recorder City of Ashland 20 East Main Street Ashland OR 97520 Consideration: None BOUNDARY LINE AGREEMENT THIS AGREEMENT made and entered into this day of .2007 between THE CITY OF ASHLAND,a municipal corporation of the State of Oregon,hereinafter called"City,"and STEPHEN&MELANIE,LLC,an Oregon Limited Liability Company,hereinafter called"Stephen&Melanie, LLC." RECITALS: A. City and Stephen&Melanie LLC each own an interest in certain real property in the Northwest Quarter of Section 10,Township 39 South,Range 1 East of the Willamette Meridian,City of Ashland,Jackson County,Oregon and; B. The City is the owner of the real property situated on the easterly side of the hereinafter described line and being further referenced as tax lot number 39 1 E 10 BC—5302 and; - C. Stephen&Melanie LLC is the owner of the real property situated on the westerly side of the hereinafter described line and being further referenced as tax lot 39 1 E l OBC—5100 and; D. The common boundary between the City property and the Stephen&Melanie LLC property has been subject to questions as to its exact location and City and Stephen&Melanie LLC desire to fix and establish a common boundary and; NOW,THEREFORE,IT IS AGREED AS FOLLOWS: 1. City and Stephen&Melanie LLC hereby agree that the legal description of the common boundary line between their respective properties is as follows: Commencing at the Southwest comer of Donation Land Claim No.43, Township 39 South,Range 1 East,Willamette Meridian,Jackson County,Oregon;thence North 610 10' 17"East 788.38 feet to the Northwest comer of Parcel One described in Document No.2005- 027148,Official Records of Jackson County,Oregon;thence along the North line thereof,South 89°58' 53"East, 135.84 feet to that certain Proposed Boundary Line Agreement as shown on Survey No. 8660 as filed with the Jackson County Surveyor also being the True Point of Beginning;thence along said proposed Agreement Line South 000 04' 30"East, 133.96 feet to the terminus of this Agreement Line. 2. Stephen&Melanie,LLC hereby conveys to City all of its right,title and interest in the real property lying adjacent to and easterly of the above described boundary line. 3. City hereby conveys to Stephen&Melanie,LLC all of its rights,title and interest which it has in the real property lying adjacent to and westerly of the above described boundary line. 4. The true consideration for the conveyances herein contained is other value given, receipt of which is hereby acknowledged. 5. The parties agree that this agreement shall be executed and acknowledged by them and placed of record in the Official Records of Jackson County, Oregon. G9pubwrkt 4ngWept-admin�SIJRVEYORt39 I E l OBC510O City and Stephen&Melaie BtA 107.dm Page l oft CITY OF ASHLAND By: John Morrison,Mayor ATTEST: By: Barbara Christensen,City Recorder STEPHEN&MELANIE,LLC By: Stephen H.Wolf By: Melanie H.Smith STATE OF OREGON County of Jackson On this day of 2007 personally appeared the above named John Morrison as Mayor of the City of Ashland and the above named Barbara Christensen as City Recorder of the City of Ashland and acknowledged that the foregoing instrument was voluntarily signed on behalf of said city by authority of its City Council. Notary Public for Oregon My commission expires: STATE OF OREGON County of Jackson On this day of 12007 personally appeared the above named Stephen H.Wolf and the above named Melanie H.Smith as members of the Stephen&Melanie,LLC and acknowledged that the foregoing instrument was voluntarily signed on behalf of said company. Notary Public for Oregon My commission expires: G:\pubes ks\.g\de t-.drum\SURVEYORU9 I 10BC 5100 Cay and Stc heo&M&..d.BLA 107 doc Page 2 oR wen. ;�:®��` �• it s ■—1 ®0111 . v s � ern .q'jp� S p / , ' 1 VIA If E.r B A .at, , �'� - v� QY x •- v vi LU ¢ C' 15 0 y r7Yrvh: ci �'\ r QP II h 'A, It,:" oe- QP oe�o z ��PPv W 4 W I O w cr ------ Q cr --- l ¢ z Z w D O O %. w m 7 p j w w N w p w a. O Io_ T ~ Y ¢ It I gin= rn trr voNfe o_C; SnrIInd NldINnorl GV6 f 60 d 33S CITY OF ASHLAND Council Communication Termination of an Easement at 829 North Main Street Meeting Date: February 6,2007 Primary Staff Contact: Paula Brown,488-55 Department: Public Works/Engineering E-mail: brownp @ashland.or.us Contributing Departments: munity Development Secondary Staff Contact:Jim Olson,488-5347 Approval: Martha Benn /) E-mail: olsonj@ashland.or.us Estimated Time:Consent Agenda Statement: Approval of the attached quitclaim deed to terminate a 12 foot wide section of a public utility easement located within the proposed Ashland View Townhouses, Planned Unit Development (Map 39 1 E 05AC— 305). Staff Recommendation: Staff recommends approval of the quitclaim deed to terminate the public utility easement thereby clearing the present encroachment of buildings and improvements onto the easement. A new easement has been acquired to the north of this easement which more closely aligns with the present access ways and utility corridors. Background: In 1989 a land partition plat was approved dividing the large parcel of land at 829 North Main Street into three separate parcels. The partition provided two lots (Parcels 2 and 3) for development as single family residences while the third (Parcel 1)was developed as an apartment complex. The partition plat also created several easements including a 37 foot wide private access and public utility easement. This easement was irregular in shape and was constrained on the north side by an existing residence. The apartment complex (on Parcel 1) has recently been approved by the Planning Commission for development as a subdivision under the performance standards option. Approval for this action was granted under Planning Action No. 2006-00454. During the course of the platting process, the surveyor discovered that two units of the apartment complex had encroached into the public utility easement by as much as six feet. This action will eliminate this encroachment by terminating the southerly 12 feet of easement as shown on the attached easement sketch as the cross-hatched section. A new easement has already been acquired on the north side so that a full 25 foot wide easement is maintained free of encroachments and unencumbered by other obstacles. The newly aligned easement more closely fits with existing improvements, buildings and utility locations. Related City Policies: The Legal Department has determined that the most efficient method of terminating public easements is to release the City's (Public's) interest in the easement to the underlying property G:\pub-wrks\cng\dept-admin\ENGINEER\EASEMEN9\39 IE 05AC 305 CC Tennination of Fasement 829 N Main 107.doc �il , owner through the use of a quitclaim deed. The Council is empowered to approve and authorize the signature of all land transaction documents including this type of deed. Council Options: Council may move to approve the quitclaim deed terminating the 12 foot wide public utility easement within the proposed Ashland View Townhouses PUD, or Council may move to delay a decision to terminate the easement pending additional information to be provided by staff. Potential Motions: Council may move to approve or delay the request to terminate the easement Attachments: Photographs Quitclaim Deed Detail Map Vicinity Map G:\pub-wrks\engldept-admin\ENGINEER\EASEMEN7V 9 I E 05AC 305 CC Termination of Easement 829 N Main 107.doc ��, _Zi ` I F x 2 4 •;,; jLM _ \)i4 fit � ; I - ��( fi44d��; .a ai Recording Requested By: City of Ashland,Oregon Engineering Dept 20 E. Main Street Ashland, OR 97520 When Recorded Mail To: Jennifer Bridges,Attorney Davis, Hearn, Saladoff, Bridges& Visser, P.C. 515 E. Main Street Ashland,OR 97520 (This Space for Recorder's Use) QUITCLAIM DEED THE CITY OF ASHLAND, OREGON, hereby releases and quitclaims unto JERRY E. TONEY and DEBRA A. TONEY, all the said City's right, title, and interest in and to that certain portion of the existing variable width Public Utility Easement recorded in Volume 10, Page 10 of Minor Land Partitions, which portion is identified on the legal description and map attached hereto as Exhibit A, located in the City of Ashland, Jackson County, Oregon. This Quitclaim Deed is being accomplished in order to amend the previous Public Utility Easement, having been incorrectly located, and so there is no consideration for this vacation. CITY OF ASHLAND, OREGON MAYOR: Dated JOHN MORRISON CITY OF ASHLAND, OREGON RECORDER: Dated BARBARA CHRISTENSEN State of Oregon ) County of Jackson ) On , 20 , before me,the undersigned Notary Public,personally appeared the above named JOHN MORRISON,personally known to me(or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to this Vacation of Easement, and acknowledged that he executed the same in his authorized capacity,and that by his signature on the instrument the person,or the entity upon behalf of which the person acted,executed the instrument. I declare under penalty of perjury that the person whose name is subscribed to this instrument appears to be of sound mind and under no duress, fraud,or undue influence. WITNESS my hand and official seal Notary Public in and for this state State of Oregon ) County of Jackson ) On ,20_,before me,the undersigned Notary Public,personally appeared the above named BARBARA CHRISTENSEN,personally known to me(or proved to me on the basis of satisfactory evidence)to be the person whose name is subscribed to this Vacation of Easement,and acknowledged that she executed the same in her authorized capacity, and that by her signature on the instrument the person,or the entity upon behalf of which the person acted,executed the instrument. I declare under penalty of perjury that the person whose name is subscribed to this instrument appears to be of sound mind and under no duress, fraud,or undue influence. WITNESS my hand and official seal Notary Public in and for this state EX MIT"A" LEGAL DESCRIPTION PUBLIC UTILITY EASEMENT VACATION ASSESSORS MAP NO. 391E05AC, Tax Lot 305 A portion of a variable width public utility easement to be vacated over and across Parcel 1 of that Minor Land Partition as recorded in Volume 10 at Page 10,of the Minor Land Partitions of Jackson County, Oregon, lying situate within Lot 4 and a Portion of Lot 12 of the W.C. Meyer Addition to the City of Ashland,Oregon in the Northeast Quarter of Section 5, Township 39 South, Range 1 East of the Willamette Meridian, Jackson County, Oregon,more particularly described and bounded as follows,to wit; BEGINNING AT a 5/8 inch iron pin monumenting the southeast corner of the exterior boundary of Partition Plat No. P-16-1992 of the Plat Records of Jackson County Oregon, lying situate in Lot 4 of the W.C. Meyer Addition to the City of Ashland in the Northeast Quarter of Section 5, Township 39 South, Range 1 East of the Willamette Meridian, Jackson County, Oregon, said pin also being on the west line of Parcel l of that Minor Land Partition as recorded in Volume 1.0 at Page 10,of the Minor Land Partitions of said County and State; thence South 89 057'30"East, a distance of 159.83 feet,to a 5/8 inch iron pin monumenting the inside ell comer on the easterly side of said Parcel l; thence South 3 050122"East(plat record South 3°52'36"East), along the east line of said Parcel 1, a distance of 12.02 feet; thence North 89°57'29"West, leaving said east line, a distance of 159.82 feet,to a point on the west line of said Parcel 1;thence North 3°51'36"West, (plat record North 3°52'36"West), along said west line, a distance of 12.02 feet,the POINT OF BEGINNING. oF tcrq)m (: ( ■ k; \ $ §� | � ` § % Z)V°to En m § \� nQ; > V) I �% 7 (o\ � wkk ) °-2 �/ § 2§§7 )$ §-Q §{�: k ( j .° §(o e2z \) IL § /© § j�� o / �^ - ! (# k � a; v` \ K ^ i � � « _mom OF c Con A 44 � Ag O WKZ - ; Q o i0N N33HJ NtlW701 y a t W e°.c. zi AAV83M1VM \� 0V OJ J '3AV NIVINOOW' 1 �. '1S-NV0 v V � o YJ` � YOZ� C FmU5 u� udwe O L U C � � N } _ O � �e o 1 CITY OF ASHLAND Council Communication Acceptance of a Public Utility Easement at 150 Lithia Way Meeting Date: February 6, 2007 Primary Staff Contact: Paula BrovAn,488-5587 Department: Public Works/Engineering E-mail: brownp@ashland.or.us Contributing Departments: L p Secondary Staff Contact:Jim 01 n,488-5347 Approval: Martha Bennett E-mail:olsonj @ashland.or.us Estimated Time:Consent Agenda Statement: Approval of the attached easement would establish an acceptance by the City of the creation of a public utility easement at 150 Lithia Way. Background: The former Harrison's Auto Parts property has been divided into two parcels separated by Will Dodge Way. The northerly parcel, which was the parking lot for Harrison's has been purchased by Robert Kendrick and is currently being developed as a mixed use building with a residence on the upper floor and retail on the ground floor. The address of the property is 150 Lithia Way (39 1 E 09BA, tax lot 11,000) and is located just north of the City parking lot on the south westerly side of Lithia Way. As a condition of the planning approvals for the development, the owner was required to grant a 5 foot wide public utility easement along the northerly boundary of the property to accommodate an existing storm drain pipe. The easement was drafted by the City legal staff allowing the building to be constructed over the easement. This particular condition required that the storm drain be installed in a sleeve which would make future pipe replacement and repair possible. The easement has been signed by Mr. Kendrick and now needs the City's acceptance so that it can be recorded. Related City Policies: ORS Section 93-810 requires that any instrument conveying title or interest to a county or city shall, carry an indication of approval of the conveyance by the county or city. This provision eliminates the possibility of persons granting property and rights of way to the city without the city's knowledge. Council Options: Council may move to accept the attached easement and authorize the mayor to sign the statement of acceptance; or Council may postpone the decision to approve the easement pending additional information to be provided by staff. Staff Recommendation: Staff recommends approval of the public utility easement. This is an easement that was required by the City and is needed to protect the existing City storm drain system in Will Dodge Way. G:\pub-wrks\eng Wept-admin\ENGINEER\EASEMENT39 IE 09BA 11000 PUE Council Communicaton 107.doc pr, r ' Potential Motions: Council moves to accept the public utility easement at 150 Lithia Way; or Move to postpone a decision pending further information to be provided by staff. Attachments: Photographs Easement Vicinity Map Detail Map a � i a 0 G:\pub-wrks\eng\dept-admin\ENGINEER\EASEMENT39 1 E 09BA 11000 PUE Council Communicaton 1 07.doc Ow Y d'F �sL y�S� 1� vlf � �.7Ad §roe x._..wr' >•cF .��-'2 _>�-' --S �-a-z OJO 14,!77 .Ly"�,]"�'h�'��Lij d t t , ; "c x'16 ._. p\�T. y ty y ! ._. �J Fri '� J '1 •�:l ' I" 111 f 1 Grantors: 145 Main' Street LLC, An Oregon Limited Liability Company Grantee: City of Ashland, Oregon Document to be Returned to: Barbara Christensen, City Recorder 20 East Main, Ashland, OR 97520 True and Actual Consideration: Send Tax Statements to: Not applicable PERMANENT UTILITIES EASEMENT FOR CITY OF ASHLAND 1. Grant of easement.The above named Grantor grants to the CITY OF ASHLAND,Oregon, "Grantee," a perpetual non-exclusive easement in gross to construct,reconstruct, install,use,operate,inspect,repair, maintain,remove and replace public utility facilities including but not limited to, lines for electricity, sewer, water, storm water, gas and telecommunications on real property described below and further referred to in this easement agreement as the"easement area." The easement area is located in Jackson County, Oregon, and is described as follows: A strip of land 5.00 feet in width located along and contiguous to the Westerly boundary line of Parcel No.2 of Partition Plat No. P-50-2006, filed for record on June 1,2006 at Index Volume 17, Page 50 of the Records of Partition Plats in Jackson County,Oregon. 2. Use of surface. Grantors shall have the right to use the easement area for all purposes not inconsistent with the uses and purposes of the property,provided that Grantors shall not build or place any structure upon the easement area except with consent of the Grantee as specifically provided for herein: Specifically, Grantee consents to building construction over and upon the easement area provided Grantor installs(or pays for the complete installation of) an approved sleeve or conduit to fully encase and protect the public utility line and provided said encasement meets all the technical requirements and specifications agreed to in writing by the Ashland Building Official and Ashland Public Works Director, as more particularly set forth in the Official Records of the Ashland Community Development Department for Planning Action No. 2005-01704. 3. Access to Easement Area. Grantee, its agents, independent contractors and invitees shall have the right of ingress and egress to the easement area for the purposes connected with this easement. Given the construction requirements of paragraph 1,access for maintenance is contemplated to be from Lithia Way or Will Dodge Way. 4. Notice. Grantee, its agents, independent contractors and invitees shall, upon every occasion that such public utility facilities are constructed, maintained, replaced,reconstructed, or removed, provide Grantors reasonable notice, and restore the premises of the Grantors, and any buildings or improvements disturbed by Grantee,as near as practicable. 5. Termination. All rights hereunder shall cease if and when the easement area ceases to be used for public utility purposes. G:\pub-w ks\cng\dept-admin\ENGINEER\EASEMENT\145 E Main Kendrick PUE a 06.doc 6.Prior Encumbrances.This easement is granted subject to all prior easements or encumbrances of record.• GRANTOR: Robert J.KenKi4 Member: 145 Main Street LLC STATE OF OREGON ) ss. County of Jackson ) �I aoo 7 The foregoing instrument was acknowledged before me this 1 " day of Je&z acqel 20W by Robert J.Kendrick, Member: 145 Main Street LLC. "CIALSEAL MNE'.JS'?A BARNEY NOTARY +;aLIC-OREGON COIAMiSSiON NO. 387602 - Notary Public for Oregon In ,�A �} MY COMMISSION EX !iiES JAN. 09,2009 My commission expires:4/�6 xe�� CITY ACCEPTANCE(ORS 93.808): CITY OF ASHLAND, GRANTEE John Morrison, Mayor, City of Ashland STATE OF OREGON ) ss. 2006 County of Jackson ) The foregoing instrument was acknowledged before me this day of 12006, by John Morrison as Mayor of the City of Ashland. Notary Public for Oregon My commission expires: G:\pub-w ks\eng\dept-admin\ENGINEER\EASEMENT\145 E Main Kendrick PUE n o6.doc EXHIBIT "B" EASEMENT PLAT Lacameu 150 Lithia Way Ashland Oregon LyivSiftwoWrrem NORTHWEST QUARTER OF SBC77ON 9, TOWNS"39 SOU774 RANGE I EAST, W.M. CITY OF ASHLAND,IACKSONCOUNTY,OREGON FOR CITY OF ASHLAND 10 East Main Street Ashland Oregon 30 I 6' 6' 5' WIDE UTILITY EASEMENT I r PER PARTITION PLAT NO. P-50-2006 N 34'2452" E - 59.19' y : ::: :::::::::: x 6 S �9�0 W(A Q N a y 3v I2 n I o I 0 I.50' 106 9 CUR VE DATA RADIUS= 0`a' PARCEL 1 PARCEL 2 ARC=40.43' PARTITION PLAT NO P-50-2006 v NEW PUBLIC PEDESTRGW ACC E SS EASEMENT L 521' '13" W 63.92" 6' 6' 30 S 310 1 1 1 REG'sTERED PROFESSIONAL \ LAND SURVEYOR \ SURVEYED BY: POLARIS LAND SURVEYING LLC OREGON P.O. BOX 459 ALT 14. 1998 SHAM KAMPMANN \ ASHLAND, OREGON 97520 388 LS (541) 482-5009 RENEWAL DATE: 6/30/2007 DATE: AUGUST 30, 2006 PROJECT NO. 179-04 SCALE: 1" = 20' ASSESSOR'S MAP NO. J9fEO9B1l TAX LOT 11000 POLARIS LAND SURVEYING r d L4 Z w 0 � U • ' m E� o V JV. U U o a�Z � 'antl,a3Airxi o i - d a r �0 - Atl�NitlLi110Mi "Is NIF j i W / • - Sil M �i w O L U C CITY OF ASHLAND Council Communication Internet Bandwidth Contract Approval Meeting Date: February 6, 2007 Primary Staff Contact: Joseph Franell Department: Information jechnology E-mail: franellj @ashland.or.us Contributing Departments: Legal Secondary Staff Contact: NIA Approval: City Administ Attorney Estimated Time: Consent Statement: The City needs to approve a new contract for internet bandwidth. After a competitive RFP process, Staff Recommends a contract with Hunter Communications to provide internet bandwidth. Staff Recommendation: Staff recommends that the public contract with Hunter Communications for internet bandwidth be approved. Background: The City is currently faced with two issues in relationship to internet bandwidth. First, bandwidth use is exceeding availability. Second, we do not have full redundancy. The City currently contracts for 75 Mbits of internet bandwidth. 30 Mbits of bandwidth comes from Hunter Communications and is transported over the existing AFN owned fiber line from Ashland to Medford. An additional 45 Mbits is purchased from Qwest Communications and is received over a Qwest owned DS3 local loop connection. Our total bandwidth use is averaging 59.2 Mbits and is peaking above our contracted rates at 193.9 Mbits. This means that we are generally using all available bandwidth from both sources to meet demand on the system. If we were to have a failure on one of the current bandwidth paths, we would only be able to provide about half of what is needed to service our customer base. On December 15, 2006, in accordance with (IAW) Oregon Revised Statutes (ORS), the City of Ashland published public notice of a request for proposal (RFP) entitled "Internet Bandwidth", requesting proposals from "individuals or companies that are interested in providing Internet Bandwidth, monitoring the City's internet bandwidth needs, and managing the network routing of the internet bandwidth for the City of Ashland." Proposals were due to the City no later than 2:00 pm on Thursday, January 18, 2007. Three companies submitted proposals; Hunter Communications, InfoStructure, and Qwest Communications. All three proposals were evaluated by an evaluation committee made up of Joseph Franell— IT Director, Michael Ainsworth—AFN Operations Manager, and Richard Holbo—Computer Services Manager, in accordance with the evaluation criteria detailed in the RFP and the results are as follows: �r, Hunter Infostructure Qwest Possible Evaluator Evaluator Evaluator Evaluator Evaluator Evaluator Evaluator Evaluator Evaluator Criteria Score 1 2 3 1 2 3 1 2 3 Qualifications and Experience 25 25 23 20 20 24 17 25 25 22 Arrangement 25 24 24 21 20 20 10 20 10 14 Contrectural Terms and Conditions 10 10 10 9 10 7 8 9 10 9 References 15 10 10 10 8 8 8 0 0 0 Interview 25 N/A N/A N/A N/A N/A N/A N/A N/A N/A Total Score 100 69 67 60 58 591 43 54 45 45 Average Score 65.33 53.33 48.00 After reviewing the summary of scores and references, the evaluation committee members concurred that the highest ranking proposal came from Hunter Communications. Each of the proposals the City received exhibited strong qualifications and experience; however, the proposal submitted by Hunter Communications clearly provided justification for the higher scores. The key points of Hunter Communications proposal are as follows: 1. No upfront costs for the City of Ashland resulting in lowest cost bandwidth 2. Billing based on usage not a flat fee. 3. Included bandwidth management. 4. Received strong recommendations from references By approving this contract and with current bandwidth usage, the City will experience similar costs as we do today while gaining full redundancy, bandwidth management, and provision for future growth in bandwidth demand. Related City Policies: AMC Chapter 2.50.060(2) The Purchasing Agent is authorized to recommend that the Local Contract Review Board approve or disapprove contract awards in excess of$75,000: Council Options: Local Contract Review Board can approve the public contract or decline to approve the public contract. Potential Motions: Local Contract Review Board moves to award the public contract. Attachments: Hunter Communications Contract H U N T E ' R c o m m u n i cc a t i o n s Internet Service Agreement Vo1.9.3.1 - QUO-01456-IH77D - V.2 - 1/31/07 1. SERVICES................................................................................................................................................................3 1.1. DATA SERVICES 3 1.2. INSTALLATION SERVICES 3 2. TERMS.....................................................................................................................................................................3 3. CHARGES.................................................................................................................................................................3 3.1. DATA SERVICES RATE 3 3.2. -INSTALLATION SERVICES CHARGE 3 3.2.1. UNINTERRUPTIBLE POWER SUPPLY 3 3.3. LATE PAYMENT,DEPOSIT,ELECTRONIC BILLING 3 3.4. TAXES,FEES,GOVERNMENT CHARGES 3 4. SERVICE LEVELS.....................................................................................................................................................3 S. HUNTER FACILITIES AND EQUIPMENT..................................................................................................................3 5.1. REMOVAL 3 5.2. PROPER ENVIRONMENT 3 5.3. DAMAGE 3 6. RIGHTS AND OBLIGATIONS OF CUSTOMER..........................................................................................................3 6.1. INSTALLATION 3 6.2. PREMISES ACCESS 3 6.3. ACCEPTABLE USE POLICIES(AUP) 4 6.4. SYSTEM INTEGRITY 4 6.S. HUNTER EQUIPMENT MOVEMENT 4 7. TERMINATION ........................................................................................................................................................4 7.1. CESSATION OF SERVICE 4 7.2. CESSATION OF ACCESS 4 7.3. TERMINATION FEE 4 8. NO WARRANTIES...................................................................................................................................................4 9. EXCLUSION OF CERTAIN DAMAGES; LIMITATION OF LIABILITY AND REMEDY; EXCLUSIVE REMEDY.............4 30. UNCONTROLLABLE CONDITIONS..........................................................................................................................5 11. SEVERABILITY..............................................:........................................................................................................5 12. GENERAL PROVISIONS..........................................................................................................................................5 13. HUNTER COMMUNICATIONS ACCEPTABLE USE POLICY FOR HUNTER IP PRODUCTS AND SERVICES..............5 13.1 PROHIBITED USES OF HUNTER'S SYSTEMS,PRODUCTS AND SERVICES 5 13.2 TERMS OF SERVICE 5 H U N T E R c o m m u n i c a t i o n s Agreement between Hunter Communications (Hunter) and Customer named below for Hunter's ("Data Services' on Hunter's telecommunications system through its fiber optic network (the "network" or"system'). Customer Name: City of Ashland (Ashland Fiber Network) Key Billing Contact: Joseph Franell Billing Address: City of Ashland, 20 E. Main St., Ashland, OR, 97520 Phone: 541.552.2314 Email Address: franellj @ashland.or.us Premises Address (if different): 90 N. Mountain Avenue, Ashland, OR, 97520 Service Address (if different): Branch Address (if different): 2 Hunter Initials Date Customer Initials Date 3.2.1. Uninterruptible Power Supply.Customer shall provide a 1. Services. Customer shall purchase and Hunter Communications form of uninterruptible power for the fiber termination hardware and any (Hunter)shall provide to Customer: Hunter facilities or equipment at the Customers location. If the Customer does not provide a unintemptible power source,Hunter will provide one for 1.1.Data Services. Data Services permit access by Customer to the price listed below. Hunters telecommunications system at the point of delivery located in the APC Uninterruptible Power Supply: $200.00 (one needed Customer's premises described above. The point of delivery is that location for each location) where the network and Customer's system are interconnected. 3.3. Late Payment, Deposit, Electronic Billing. Payments 1.2. Installation Services. Installation services consist of received after the due date may be subjected to a charge of lr/z% per coordinating with Customer the necessary engineering, site survey, system month on the unpaid balance at the discretion of Hunter. Hunter may configuration and other services necessary to provide Customer Data require Customer to pay a deposit in advance of the provision of any Services. These services shall be provided up to the date that the service service. Hunter shall hold any such deposit In a non-interest bearing testing is completed based on Hunter's customary testing procedures and account and used to satisfy(in whole or in part)any obligation of Customer the service is available to the Customer("the service acceptance date"). under this agreement. All invoices will be sent via electronic mail. If Customer requests paper invoicing, a $5.00 monthly processing fee will be In addition, Hunter will provide the equipment (collectively referred to as assessed to Customer's account. "Hunter facilities')necessary to connect Customer's facilities to the network. 3.4. Taxes, Fees, Government Charges. Customer agrees to 2. Terms. This agreement will be effective upon the date executed by pay any applicable taxes, franchise fees or other governmental charges Hunter and shall continue for 12 months, unless sooner terminated as Imposed upon Hunter Communications by governing body with jurisdictional provided in this agreement.This agreement shall be subject to semi-annual authority over this service or for use of public right of ways and easements. pricing reviews, the first of which shall occur 6 months from the date executed by Hunter. The subsequent pricing review shall coincide with 4. Service Lewis. See Addendum"A"-Hunter Cornmunicabans service agreement expiration. Customer has the option at that time to renegotiate Leve/Agreement R1.15 agreement pricing and renew for an additional 12 month term. As part of the semi-annual pricing review Hunter will provide to Customer all applicable S. Hunter Facilities and Equipment Any Hunter facilities and/or information necessary for review,Including but not limited to: equipment installed on Customer's premises shall be and remain the • Hunter bandwidth costs property of Hunter and may be repaired or replaced at any time and removed at the termination of service, and may be used to supply other • Hunter support costs customers of Hunter whether or not on the same premises. No rent or other charge shall be made by Customer on Hunter for placing or 3. Charges. Hunter agrees to provide to Customer two(redundant)local maintaining Its facilities or equipment necessary to provide service under the Imp connections-150 Mbit capacity per link—to the Internet. The terms and conditions of this agreement,upon Customer's premises. Hunter redundant multimegablt local loop connections will be from local Internet shall be entitled, at any time, to affix to Hunter facilities or equipment a point of presence(POP)to the Ashland Headend located at 90 N. Mountain label indicating the interest of Hunter. Avenue,Ashland,OR,97520. Customer agrees to pay for these services on a sliding fee scale based on monthly usage.This usage is to be calculated by 5.1. Removal. Customer will use reasonable efforts to ensure a 95th percentile equation.A detailed usage report will be included with the that Hunter facilities and/or equipment are not removed or caused to be monthly statement Bandwidth usage Is to be billed based on the rate chart removed by any person,other than Hunter or without Hunter's prior written below(With a minimum usage of 50 megabits and maximum usage of 300 consent. Mbps): Total monthly usage based on 5.2.Proper Environment Customer shall use reasonable efforts 95th percentile calculation to keep the location of Hunter's facilities and/or equipment in the proper environment as specified by Hunter. (All rates In megabits) Per Mb Rate 5.3.Damage. Customer agrees to exercise due care and caution 50 Mbps $150.00 to protect Hunter's facilities and equipment from the weather, vandalism 51-75 Mbps $125.00 and other potential problems. Customer shall be liable for any loss or 76-100 Mbps $100.00 damage to Hunter's facilities and/or equipment at any location arising from 101-150 Mbps $90.00 Customer's negligence, Intentional act, unauthorized maintenance or other 151-200 Mbps $85.00 cause within the reasonable control of Customer, its employees or agents. 201-250 Mbps $80.00 In the event of any loss or damage to Hunter's facilities or equipment for 251-300 Mbps $75.00 which Customer Is liable, Customer shall reimburse Hunter for the lesser of the reasonable cost of repair or the actual cost of replacement. Initial Date . 3.1. Data Services Rate. From the service start-up date, 6.Rights and Obligations of Customer. Customer shall pay the rate specified above for each unit of bandwidth. If 6.1. Installation. Customer shall at its expense undertake all the service does not begin on the first day of a billing cyde,then payments necessary preparations required to comply with Hunter's installation and for the first month shall be prorated on a dally basis. All accounts will be maintenance instructions. Such preparations include obtaining all necessary Invoiced on the first day of each month,and all sums shall be paid within 20 consents for the Installation and use of Hunter facilities and/or equipment in days after the date of the monthly billing for services (the "due date"). the building, including consents for necessary alterations to buildings; Hunter requests that these payments be made via Electronic Fund Transfer. ensuring that any ficor loading limits will not be exceeded; providing Please complete Addendum"B",Authorization for EFT. suitable accommodations, foundations and an environment to meet the environmental specifications for Hunter Including all necessary trunking, 3.2. Installation Services Charge. Customer shall pay the conduits and cable trays; providing suitable electric power and any other installation charge specified below for the Installation services provided by utilities needed by Hunter to install, test and or maintain Hunter's facilities Hunter which charges shall be due and payable upon onsite Installation of and equipment; providing a suitable and safe working environment for the fiber terminating hardware and therefore establishing the due date of Hunter's personnel, Including an environment safe from environmental the Installation charges and any prorated data services for the start-up hazards; and taking up or removing, in time to allow Hunter to carry out period. Installation as scheduled, any fitted or fixed Floor coverings, ceiling tiles, • Hardware and fiber installation:Applicable insta//afian fees suspended ceilings and partition covers. have been waived. 6.2. Premises Access. Customer shall provide Hunter or other persons authorized by Hunter with access(on both a routine and emergency 3 Hunter Initials Date Customer Initials Date basis) for the Implementation of all service; Customer will provide Hunter Customer. No deductions to billing will be made for Customer-caused reasonable access to the Customer premises where any Hunter facilities or outages. equipment are Installed. Hunter shall not be responsible for any faults on the network or any failure to perform the provisions of this agreement to 7. Termination Either parry may terminate this agreement for cause, the extent that Hunter,In good faith,requires access,and any such faults or provided written notice is given the other parry specifying the cause for failures or the continuation thereof are a result of the failure of Customer to termination and requesting correction within 10 days for fallure to pay a provide access to the place at each location where Hunter facilities and/or sum due, or within 30 days for any other cause, and such cause is not equipment are Installed supporting the failing service or connection. corrected within the applicable period. Cause is any material breach of the terms of this agreement,Including the failure to pay any amount when due, (a)During implementation, Hunter will normally carry out work required to the fling of a petition in bankruptcy by or against Customer or Customers install and/or repair Hunter's facilities and equipment during its normal Inability to meet obligations when due; or failure of Hunter. Hunter will working hours but may,on reasonable notice,require access at other times. furnish copies of such policies upon request. At Customer's request, Hunter will carry out work to install Hunter's facilities and equipment outside Hunter's regular working hours, in which event 7.1.Cessation of Service. Hunter may deny Customer access to Customer agrees to pay overtime and any other appropriate charges agreed the network and cease to provide all or part of any services described in this between the parties. agreement if Customer: (b) Any out-of-pocket costs, reasonably Incurred by Hunter, as a (a)violates any provision of applicable acceptable use policies; consequence of the denial of access by Customer(or building owner)to any (b) engages in any conduct or activity that Hunter, in its sole location shall be paid by Customer. Hunter shall advise Customer of any discretion, reasonably believes causes a risk that Hunter may such costs on a case-by-case basis. be subjected to civil or criminal litigation,charges,or damages; 1. Hunter is required to provide 72 hour written 6.3.Acceptable Use Policies(AUP). Hunter's Acceptable Use notice of termination for failure to rectify Policy(AUP)Is posted to our web site and is to be acknowledged and known violations of sections 7.1 part a and b. by the Customer at all reasonable times. Customer shall comply with or; Hunter's acceptable use policies. The acceptable use policies are subject to (c) has a technical Issue beyond Hunters control that is change at any time by Hunter acting in Its.sole discretion, and all such currently causing Hunter or Hunters customers to be denied changes shall be binding upon Customer upon written notice to Customer by access or to lose services by Hunter's Internet provider. Hunter. 1. Hunter is not required to notify customer of Violations of section 7.1 part c. (a)Customer shall be responsible for the use and compatibility of equipment or software not provided by Hunter. In the event that Customer uses 7.2.Cessation of Access. If Hunter ceases to provide or denies equipment or software not provided by Hunter which impairs Customer's Customer access to the network pursuant to this section,neither Customer Data Services or the network, Customer shall nonetheless be liable for nor any of its customers shall have any right: payment for all service, including without limitation any software provided (a) to access through Hunter any materials stored on the by Hunter. Upon notice from Hunter that any equipment or software not Internet, provided by Hunter is causing or is likely to cause an hazard, Interference, (b)to obtain any credits otherwise due to Customer,and such or service obstruction, Customer shall Immediately eliminate the likelihood credits shall be forfeited,or, or hazard,interference,or service obstruction and if Customer fails to do so, (c) to access third party services, merchandise or information Hunter may take such action as It deems required to eliminate such hazard, on the Internet through Hunter. Hunter shall have no interference or service obstruction. responsibility to notify any third-party providers of services, merchandise or Information of any discontinuance of any (b) Customer will only connect to the network using Industry standard services pursuant to this section, nor any responsibility for any equipment,which complies and is compatible with the service specifications consequences resulting from lack of such notification. set forth in applicable technical publications. Notwithstanding the undertaking of Customer in the prior sentence, if, in Hunter's reasonable 7.3. Termination Fee. If Hunter terminates this agreement for opinion,the technical Integrity of the network or the service being provided cause, or if Customer terminates this agreement without cause, Customer over the network to Customer or any other third parry is being jeopardized shall pay Hunter a termination fee equal to the lesser of: or is likely to be jeopardized as a result of the connection of any Customer (a) the remaining charges applicable through the end of the premises equipment to the network by Customer or by any other activity for scheduled term,or; which Customer is responsible, Hunter may suspend the provision of the (b)two month charges. services to any connection so affected. Following remedial action by Customer satisfactory Hunter, Hunter will reinstate the service provided 8. No Warranties. To the extent permitted by applicable law, Hunter is through that connection as soon as possible. providing the services and the system (Inducing but not limited to the Hunter facilities and/or equipment and any access to the network). Hunter (c)Hunter reserves the right to allow or refuse to allow any make,model or agrees, to the extent feasible, that all equipment provided by Hunter shall software revision of customer-provided equipment to be used as a gateway function to permit Customer access to the bandwidth purchased hereunder. to any network access. Customer will cooperate with Hunter in setting the Except for the obligations assumed by Hunter under the terns and initial configuration for Its equipment's interface with the network. conditions of this agreement,Hunter hereby disclaims all other warranties,if any,either implied,statutory or otherwise,with respect to any of the system (d)Hunter may from time to time issue technical Instructions on the use of and services provided or to be provided under this agreement,including but the network to ensure the proper functioning of the services or the not limited to warranties of merchantability,fitness for a particular purpose, protection of the network from damage or deterioration. Customer will or lack of viruses. observe technical instructions. Hunter makes no warranty: 6.4. System Integrity. Customer to cure any violation (other (a)of title,quiet enjoyment or lack of infringement with respect than failure to pay)of the provisions of this agreement within 30 days notice to the system or services; by Hunter. (b)that the system or services are"year 2000"compliant. 6.5. Hunter Equipment Movement. Customer is obligated to 9. Exclusion Of Certain Damages; Limitation Of Liability And obtain written approval from Hunter prior to moving any of Hunter's Remedy;Exclusive Remedy. equipment. Moving of equipment without authorization may cause damages and/or an outage. A customer-caused outage, due to the moving of Hunter's total liability to Customer under this agreement and the equipment without written authorization,will be the sole responsibility of the transactions contemplated herby,including without limitation any liability of Customer. Costs for repairs performed by Hunter technicians as a result of Hunter for any damages of any nature whatsoever, including without damages due to movement of Hunter equipment shall be borne by the limitation direct or actual damages, shall be limited to the direct damages incurred by Customer in actual and reasonable reliance on the system or 4 Hunter Initials Date Customer Initials Date services, which damages shall not, in the aggregate, exceed 100% of the 7. Knowingly engage in any activities that will cause a denial-of- maximum amount Customer could pay for services for one year under the service (e.g., synchronized number sequence attacks) to any terms and conditions of this agreement. Hunter customers or end-users whether on the Hunter network or on another provider's network. Except for the provision of credits to Customer's account as specifically 8. Using Hunter's Products and Services to interfere with the use of provided In Addendum "A,"the rights and remedies granted to Customer the Hunter network by other customers or authorized users. under this section 9 constitute Customers sole and exclusive remedy against 9. Any open wireless network is strictly prohibited. Any type of Hunter, It's agents, officials and employees for any and all claims arising unauthorized service sharing will be searched for and under statutory or common law or otherwise. immediately Identified. Any Customer unwilling to bring down any such network will be terminated There are no third parry beneficiaries of this agreement. Customer agrees that Hunter shall have no liability for the negligence, products, services or Each Hunter IP customer Is responsible for the activities of Its customer websites of Customer;of affiliates;of developers or consultants Identified of base/representatives or end-users and,by accepting service from Hunter,Is referred to Customer by Hunter; or of any other third party, including but agreeing M ensure that its customers/representatives or end-users abide by not limited to liability for the content,quality and accuracy of the foregoing this Policy. Complaints about customers/representatives or end-users of which are accessible by use of the system or services of Hunter. Hunter IP Customer will be forwarded to the Hunter IP customer's postmaster for action. If violations of the Hunter Communications 10. Uncontrollable conditions. Neither party shall be deemed In Acceptable Use Policy occur, Hunter IP customer's Products and Services violation of this agreement if it is prevented from performing any of the reserves the right to terminate services with or take action to stop the obligations under this agreement by reason of severe weather and stones; offending customer from violating Hunter's AUP as Hunter deems earthquakes or other natural occurrences; strikes or other labor unrest; appropriate,without notice. power failures; nuclear or other civil or military emergencies; acts of legislative; Judicial; executive or administrative authorities; or any other 13.2 Terms of Service. To ensure that all' Hunter Network users circumstances which are not within its reasonable control. experience reliable service,Hunter requires users to adhere to the following terms and conditions. If you have any questions or concerns regarding 11. Severability. In the event that a court, governmental agency, or Hunter service, call the appropriate contact listed on your monthly billing regulatory body with proper jurisdiction determines that this agreement or a statement. Cable Modem customers need to contact their respective ISP provision of this agreement is unlawful,this agreement,or that provision of providers. the agreement to the extent it is unlawful,shall terminate. If a provision of this agreement Is terminated but the parties can legally, commerclally and practicably continue without the terminated provision,the remainder of this city of Ashland: agreement shall continue In effect. Name: 12.General Provisions. Failure or delay by either parry to exercise any right or privilege under this agreement will not operate as a waiver of such TNe: right or privilege. Customer may assign this agreement only with the consent of Hunter. This agreement constitutes the entire understanding Signature: Date: between Customer and Hunter with respect to Service provided herein and supersedes any prior agreements or understandings. 13. Hunter Communications Acceptable Use Policy for Hunter IP Hunter communications: Products and Services. Richard Ryan,President Hunter Communications Acceptable Use Policy(the "Policy')for Hunter IP Products and Services is designed to help protect Hunter, Hunter's Signature: Date: customers and the Internet community in general from Irresponsible or, in some cases,Illegal activities.The Policy Is a non-exclusive list of the actions prohibited by Hunter Communications.Hunter Communications reserves the right to modify the Policy at any time. 13.1 Prohibited Uses of Hunter's Systems,Products and Services. 1. Transmission,distribution or storage of any material In violation of any applicable law or regulation is prohibited. This Includes, without limitation, material protected by copyright, trademark, trade secret or other intellectual property right used without proper authorization, and material that is obscene, defamatory, constitutes an illegal threat,or violates export control laws. 2. Sending unsolicited mail messages, including the sending of "Junk mail" or other advertising material to Individuals who did not specifically request such material(e.g.,"e-mall Spam").This Includes, but is not limited to, bulk mailing of commercial advertising,informational announcements,and political tracts. It also Includes posting the same or similar message to one or more newsgroups(excessive cross-posting or multiple-posUng). Hunter accounts or services may not be used to collect replies to messages sent from another Internet Service Provider where those messages violate this Policy or that of the other provider. 3. Unauthorized use, or forging, of mail header information (e.g., "spoofing"). 4. Unauthorized attempts by a user to gain access to any account or computer resource not belonging to that user (e.g., "cracking"). S. Obtaining or attempting to obtain service by any means or device with intent to avoid payment. 6. Unauthorized access, alteration, destruction, or any attempt thereof, of any information of any Hunter customers or end- users by any means or device. 5 Hunter Initials Date Customer Initials Date CITY OF ASHLAND Council Communication Mid Year Financial Report: July - December 2006 Meeting Date:February 6, 2007 Primary Staff Contact: Lee Tuneberg � Department: Administrative Services E-mail: I tuneberla),ashland.or.us Contributing Departments: NA ,I '� Secondary Staff Contact: Approval: Martha Benne E-mail: i /� I Estimated Time: Consent Agenda Statement: This is the mid year financial report for the City (including Parks & Recreation) providing the financial position of the City relating to cash & investments, budgetary revenues and expenditures. Council acceptance of this report is requested. Staff Recommendation: Staff recommends acceptance of this report as presented. Background: The Administrative Services Department submits reports to Council on a quarterly basis to provide assurance of budget compliance and for informational and comparative purposes throughout the year. Information can be provided in differing formats and timetables at Council's request. Unaudited, detailed balance sheets, revenues and expenditure reports are available for your review in the Administrative Service Department office should you require any additional information. The reports are intended to present information in formats consistent with the department, fund and business activity presentations included in the adopted FY 2006-07 budget document and the manner in which it will be shown in the end of year report. Financial numbers for the first and second quarter are the basis for preliminary estimates of the current budget year and for the creation of the proposed budget for the following year. At this time departments are reviewing operations and capital projects to remain within budget, preparing for the construction season and projecting how changes will impact this and the following budget. Cash is $2.4 million compared to this point in the previous year. Several funds are significantly above or below the prior year but the most notable change is in the Water Fund recording $2.5 million less cash,primarily due to projects. The City's investments reflect the drop in cash, mostly in shifts away from investments outside the Local Government Investment Pool. CITY OF ASHLAND Revenues are at 52.0% of budget and slightly above FY 2005-2006. All expenditure categories are slightly ahead of the prior year with Personal Services and Materials & Services below the 50% budget mark, city-wide, and Debt Service at 68..2% adhering to payment schedules. Capital Outlay is 20.1%of the annual budget representing projects waiting to be started or better weather to resume. Contingency has only been used for Legal services in the Central Service Fund, Administration Department, at this point in the fiscal year. Fund balance carry forward was $5.5 million above projections and that amount remained at the end of December but will drop by the end of the year as project work resumes. Overall the City is doing well on its budget with revenues to date exceeding expenditures by $2.5 million but disconnects between resources and requirements relating to capital costs in several funds (Capital Improvements and Water are good examples) will need to be resolved by June 30 or early in next fiscal year. Related City Policies City of Ashland Financial Management Policies, Budget Document Appendix Council Options: Council may accept this report as presented, recommend modifications as discussed or defer acceptance (takes no action) awaiting further information or clarification. 'Potential Motions: Council moves to accept the mid year report as presented. Council moves to accept the report as modified by discussion. Council takes no action pending further information or clarification. Attachments: Attached is the City of Ashland financial report for the six months ended December 31, 2006. This report includes: 1. Financial Narrative (pages iii-v) 2. Summary of Cash and Investments as of December 31 for the last two years (page 1) 3. Combined Statement of Financial Position City Wide (page 2) 4. Schedule of Revenues by Fund (page 3) 5. Schedule of Budgetary Compliance per Resolution 42006-11 (pages 4-7) The numbers presented are unaudited and unadjusted. CITY OF ASHLAND Financial Narrative Summary of Cash and Investments provides an understanding of changes in the City's cash position across funds and investment types. Please note that the city-wide cash balance has decreased $2,434,357 dollars between years. The Combined Statement of Financial Position is similar to presentations provided in the annual financial report. It is intended to provide the reader an overall sense of the City's financial position at the present time. The Ending Fund Balance is $27.2 million, $5.5 million more than budgeted but $2.2 million less than existed last year at this time. Revenues and Budgetary Resources at December 31, 2006 total $33,206,575 as compared to total year-to-date requirements of$30,739,539 which results in a $2.47 million increase to Unappropriated Ending Fund Balance. This approximates the annual budget of$2.53 million excess requirements over resources for the year. Additionally, the City carried over$5.57 million more in working capital than was anticipated. On a city-wide basis, Licenses & Permits, Intergovernmental Revenues, Charges for Services, System Development Charges, Assessment Payments and Miscellaneous Revenues are below the 50% mark. Moderate weather affecting utility sales (charges for services) and delayed developer projects (City capital projects) account for Licenses & Permits, Intergovernmental Revenue and Systems Development Charges to be less than projected. Taxes are at 67% with the bulk of revenues for the year coming in November and Interest on investments is over 60% of budget due to better rates. Total Requirements are below budget showing a 39% level. At the first quarter this category was 6% below while second quarter posts 1 I% under budget but total requirements and transfers is $2.26 million above the prior year. Staff expects to finish the year with total requirements under budget. Personal Services is 46% indicating less than full employment. Successful recruitment of the Community Development Director, Police Chief and many other open positions will bring actual and budget numbers closer to each other for this year and the next. Materials & Services is 43% of budget and is consistent with the prior year. Capital Outlay is at $3.5 million to date (only 20% of the budget) for the reasons mentioned above. Budgetary Requirements are at 13% for the year with only $459,922 of the Transfers Out as budgeted completed. Contingency of$1,656,000 remains available for use. The Schedule of Revenues by Fund provides an overview of all resources year-to-date. In most cases, collections exceeded budget however, variations due to construction and related financing and transfers can affect these percentages and consistency between years. • iii �=, CITY OF ASHLAND General, Debt, Parks and Recreation and Ashland Youth Activities Levy funds rely on tax revenues and have percentages that vary greatly in the first and last parts of the year but report near or over the 50% mark based upon the timing of the activity and the property tax revenues received in November. The percentages of expenditures to budget this year are unusually lower because of budgeted revenues from sale of property, rate increases and capital borrowing which have not happened within the General and enterprise funds. Capital outlay and project oriented funds also vary greatly due to project timing and related funding. The Schedule of Budgetary Compliance is intended to present expenditures on a budget basis by fund consistent with the resolution adopting appropriation levels in the budget compliance section of the document. As of December 31, there was one budget adjustment (a transfer from Contingency)presented to Council for$14,000 to appropriate in the Central Service Fund to cover outside legal expenses due to the vacant assistant City Attorney position. With each report, staff attempts to include all material transactions possible that have occurred through the cut off date to provide accurate information. Throughout the year, staff reviews accounts and transactions on'varying schedules to ensure proper coding and activity as it compares to what is budgeted. This can cause adjustments to the listed accounts before the year's end and what is included in the comprehensive annual report. General Fund—Total expenditures are 40% with $0 Contingency used. Grants are above 50% based upon the needs of the recipients. Some departments are below budget due to vacant positions. The Planning Division is 22% of budget due to a large expenditure for land ($1,000,000) being budgeted this year but not expended to date. All other appropriation levels are consistent with activities. CDBG Fund—Expenditures are 54.7% of budget with Personal Services at 50.3%. A $215,000 Interfund Loan repayment to the General Fund awaits the sale of the city-owned Strawberry Lane property. Street Fund—All expenditures categories are below budget. Variations from the 50% mark are heavily dependant upon capital project activity. Airport Fund—Debt Service is at 50% in keeping with loan requirements. Capital Improvements Fund—Expenditures are at 24% with Transfers (operating) at 50%. Capital Outlay included $2.5 million in appropriations for Fire Station 42 construction work that will not be done this year. Related borrowing will also not be done. Debt Service Fund - Expenditures are consistent with timing of payments and budgeted activity. Water Fund—Total fund expenditures are 44%. All divisions are below the half-year mark of 50% but Improvement SDC's at 84% and Debt Service is 87% in keeping with payments and iv �=, CITY OF ASHLAND timing required by bond covenants. The low percentages are directly related to capital projects yet to begin or awaiting the construction season. Wastewater Fund— Similar to the Water Fund, the Wastewater Fund overall percentage expended is low at 36%yet operational costs by division are 33-36% of budget with 53% of debt service yet to be paid. A cause for such low percentages is the Collection Division budget includes $786,000.for Capital with $131,900 expended to date and Treatment Division has expended $4,204 against the $489,250 appropriated for capital work. Electric Fund—Expenditures are 47.4% of budget. This is relatively normal for this time of year but staff will need to closely monitor Supply and Transmission costs through the end of the year. These two categories average 53% for year to date costs and that is fairly consistent with historical costs being higher in July through September. Recent changes in how wholesale power costs are allocated between both divisions are the cause for the significant variation in percentage of budget between the two categories. Telecommunications Fund—Expenditures are at 53%. Cable Television is at 111% of Budget due to the date of Cable TV transferring to Ashland Home Net being later in the year than expected and budgeted. A transfer of appropriations will be needed by the end of the year from the other divisions or from Contingency. Central Services Fund—Expenditures for all divisions are below the 50% mark with an average of 44%. Some of this is due to open positions, project and maintenance delays. Insurance Services Fund—Material & Services are 39% of budget, consistent with activity given the annual premiums paid in the first quarter resulting in Materials and Services at 64.4%. Equipment Fund—Personal Services and Material & Services are below the 50%mark and Capital Outlay is 17% awaiting equipment purchases in process. Cemetery Trust Fund - Transfers are consistent with activity. o Parks and Recreation Fund - Expenditures are consistent with activity at 40% and no Contingency used. Ashland Youth Activities Levy Fund - Materials & Services will reflect a significant payment to the school district in January per the agreement on handling tax revenue proceeds. . Parks Capital Improvements Fund—Recorded Capital Outlay is well under budget due to no activity to this point. Unaudited, detailed balance sheets, revenues and expenditure reports and fund statements are available for your review in the Administrative Services Department office should you require any additional information. i':N City of Ashland Summary of Cash and Investments December 31, 2006 Balance Balance Change From Fund December 31,2006 December 31,2005 FY 2006 General Fund - $ 2,847,519 $ 2,754,578 $ 92,941 Community Block Grant Fund 256,505 191,792 64,713 Street Fund 2,277,423 1,686,571 590,852 Airport Fund 53,955 (24,087) 78,042 Capital Improvements Fund 333,337 823,204 (489,867) Debt Service Fund 140,383 840,260 (699,877) Water Fund 4,257,130 6,780,219 (2,523,089) Wastewater Fund 4,846,090 5,133,693 (287,603) Electric Fund 1,878,849 1,517,511 361,338 Telecommunications Fund 539,326 569,079 (29,753) Central Services Fund 996,880 746,838 250,042 Insurance Services Fund 1,330,636 '1,299,621 31,015 Equipment Fund 1,680,950 1,554,997 125,953 Cemetery Trust Fund 735,822 712,004 23,818 - 22,174,805 24,586,280 $ (2,411,475) Ski Ashland Agency Fund 26,721 21,745 4,976 Parks 8 Recreation Agency Fund 5,055,088 5,082,946 (27,858) 5,081,809 5,104,691 (22,682) Total Cash Distribution $ 27,256,614 $ 29,690,971 $ (2,434,357) Manner of Investment Petty Cash $ 3,010 $ 3,010 $ - General Banking Accounts 2,135,719 646,181 1,489,538 Local Government Inv.Pool 22,117,885 21,316,780 801,105 City Investments _ 31000,000 7,725,000 (4,725,000) Total Cash and Investments $ 27,256,614 $ 29,690,971 $ (2,434,357) , Dollar Distribution All Other(General Ski Ashland,Parks Government) and Recreation 24% Funds 19% Central Services, Insurance and Equipment Funds Business Type 15% Funds 42% 6 1(AR007 flgM O[t]t FY 2r4l.�L4 1 , City of Ashland Combined Statement of Financial Position City Wide For the one month ended December 31, 2006 Fiscal Year 2007 Percent Fiscal Year 2006 Year-To-Date Fiscal Year 2007 Collected/ Year-To-Date Resource Summary Actuals Adjusted Expended Balance Actuals Revenues Taxes $ 12,594,344 $ 18,751,882 67.2% $ (6,157,538) $ 11,774,133 Licenses and Permits 400,500 1,713,541 23.4 0/a (1,313,041) 457,323 Intergovernmental Revenues - 1,506,791 3,637,810 41.4% (2,131,019) 1,156,937 Charges for Services - 16,922,464 34,603,977 48.90/. (17,681,513) 16,386,044 System Development Charges 418,011 1,515,900 27.6°/ (1,097,889) 645,712 Fines and Forfeitures 92,387 157,000 58.8% (64,613) . 64,687 Assessment Payments 77,401 252,000 30.7% (174,599) 287,331 Interest on Investments 424,516 703,300 60.4% (278,784) 346,115 Miscellaneous Revenues 310,239 1,642,400 18.9% (1,332,161) 296,595 Total Revenues 32,746,653 62,977,810 52.00/6 (30,231,157) 31,414,877 Budgetary Resources: Other Financing Sources - 500,000 0.0% (500,000) - Interfund Loans 745,000 0.0% (745,000) Proceeds From Debt Issuance - 16,147,100 0.00% (16,147,100) Transfers In 459,922 1,034,934 44.4% (575,012) 831,317 Total Budgetary Resources 459,922 18,427,034 2.5% (17,967,112) 831,317 Total Resources 33,206,575 81,404,844 40.8% (48,198,269) - 32,246,194 Requirements by Classification Personal Services 10,512,989 22,732,581 46.20/. 12,219,592 9,943,419 Materials and Services 13,412,861 31,027,927 43.2% 17,615,066 13,105,957 Debt Service 2,838,949 4,163,428 68.2°/, 1,324,479 2,746,282 Total Operating Expenditures 26,764,799 57,923,936 46.2% 31,159,137 25,795,658 Capital Construction _ Capital Outlay 3,514,818 17,510,975 20.1% 13,996,157 1,850,166 Interfund Loans - 745,000 0.0% 745,000 - Transfers Out 459,922 1,034,934 44.4% 575,012 831,317 Contingencies - 1,656,000 0.0% 1,656,000 - Total Budgetary Requirements 459,922 3,435,934 13.4% 2,976,012 831,317 Total Requirements 30,739,539 78,870,845 39.0°/, 48,131,306 28,477,141 Excess(Deficiency)of Resources over Requirements 2,467,036 2,533,999 97.4%, (66,963) 3,769,053 Working Capital Carryover 24,727,622 19,154,800 129.1% 5,572,822 25,655,059 Unappropriated Ending Fund Balance $ 27,194,658 $ 21,688,799 125.4% $ 5,505,859 $ 29,424,112 6 F lReW Dec 31 FY M7A 1A 7 2 City of Ashland Schedule of Revenues By Fund For the one month ended December 31,2006 Fiscal Year 2007 Fiscal Year 2006 Year-To-Date Fiscal Year Percent to Year-To-Date Revenues by Fund Actuals 2007 Adjusted Budget Balance Actuals CRY General Fund $ 7,382,831 $ 16,843,770 43.8% $ (9,460,939) $ 7,066,155 Community Block Grant Fund 381,042 636,250 59.9% (255,208) 94,000 Street Fund 2,061,737 11,927,753 17.3% (9,866,016) 1,851,839 Airport Fund 56,208 164,087 34.3% (107,879) 54,269 Capital Improvements Fund 809,724 6,769,119 12.0% (5,959,395) 340,354 Debt Service Fund 1,074,236 1,805,072 59.5% (730,836) 872,409 Water Fund 2,645,356 15,445,296 17.1% (12,799,940) 2,680,544 Wastewater Fund 2,370,231 9,540,802 24.8% (7,170,571) 2,390,312 Electric Fund 5,989,031 15,339,492 39.0% (9,350,461) 5,915,107 Telecommunications Fund 1,196,098 2,097,454 57.0% (901,356) 1,879,419 Central Services Fund 2,661,933 5,922,861 44.9% (3,260,928) 2,811,963 Insurance Services Fund 337,710 1,585,319 21.3% (1,247,609) 300,274 Equipment Fund 728,871 2,862,230 25.5% (2,133,359) 659,860 Cemetery Trust Fund 28,294 754,212 3.8% (725,918) 18,797 Total City Components 27,723,302 91,693,717 30.2% (63,970,415) 26,935,302 Parks and Recreation Component Parks and Recreation Fund 3,522,975 6,058,700 58.1% (2,535,725) 3,304,789 Ashland Youth Activities Levy Fund 1,960,298 2,431,361 80.6% (471,063) 1,955,489 Parks Capital Improvement Fund - 375,866 0.09/6 (375,866) 50,614 Total Parks Components 5,483,273 8,865,927 61.8% (3,382,654) 5,310,892 Total City $ 33,206,575 $ 100,559,644 33.0% $ (67,353,069) $ 32,246,194 6F.rc fleparl D.31 R M7,h fro 7 3 City of Ashland Schedule of Budgetary Compliance Per Resolution #2006-11 For the one month ended December 31, 2006 Fiscal Year 2007 Year-To-Date Fiscal Year 2007 Percent Actuals Adjusted Used Balance General Fund Administration $ 60,516 $ 253,780 23.8% $ 193,264 Administrative Services-Municipal Court 184,065 395,035 46.6% 210,970 Administrative Services-Social Services Grants 113,305 115,360 98.2% 2,055 Administrative Services-Economic&Cultural Grants 329,178 504,650 65.2% 175,472 Administrative Services-Miscellaneous 7,000 0.0% 7,000 Administrative Services-Band, 29,792 61,554 48.4% 31,762 Police Department 2,324,910 5,325,774 43.7% 3,000,864 Fire and Rescue Department 2,375,348 5,262,372 45.1% 2,887,024 Public Works-Cemetery Division 148,570 355,375 41.8% 206,805 Community Development-Planning Division 508,871 2,313,591 22.0% 1,804,720 Community Development-Building Division 360,248 801,756 44.9% 441,508 Transfers 500 500 100.0% - Contingency - 400,000 0.0% 400,000 Total General Fund 6,435,303 15,796,747 40.7% 9,361,444 Community Development Block Grant Fund Personal Services 17,839 35,485 50.3% 17,646 Materials and Services 329,881 385,765 85.5% 55,884 Other Financing Uses(Interfund Loan) 215,000 0.0% 215,000 Total Community Development Grant Fund 347,720 636,250 54.7% _ 73,530 Street Fund Public Works-Street Operations 847,713 4,060,268 20.9% 3,212,555 Public Works-Storm Water Operations 272,338 739,870 36.8% 467,532 Public Works-Transportation SDC's 41,804 274,850 15.2% 233,046 Public Works-Storm Water SDC's 13,548 47,500 28.5% 33,952 Public Works-Local Improvement Districts 20,319 - 343,498 5.9% 323,179 Contingency - 153,000 0.0% 153,000 Total Street Fund 1,195,722 5,618,986 21.3% 4,423,264 Airport Fund Materials and Services 36,523 111,532 32.7% 75,009 Debt Service 17,536 35,173 49.9% 17,637 Contingency - 5,000 0.0% 5,000 Total Airport Fund 54,059 151,705 35.6% 97,646 6 FlmmA R�Da 31 HM7.& II3dA07 4 Schedule of Budgetary Compliance Per Resolution #2006-11 For the one month ended December 31, 2006 Fiscal Year 2007 Year-To-Date Fiscal Year 2007 Percent Actuals Adjusted Used Balance Capital Improvements Fund Personal Services 72,849 152,407 47.8% 79,558 Materials and Services 135,536 394,750 34.3% 259,214 Capital Outlay 538,097 3,056,000 17.6% 2,517,903 Transfers 450,000 905,434 49.7% 455,434 Other Financing Uses(Interfund Loan) - 530,000 0.0% 530,000 Contingency 50,000 0.0% 50,000 Total Capital Improvements Fund 1,196,482 5,088,591 23.5% 3,892,109 Debt Service Fund Debt Service 1,386,137 1,656,170 83.7% 270,033 Total Debt Service Fund 1,386,137 1,656,170 83.7% 270,033 Water Fund Electric-Conservation Division 83,817 172,005 48.7% 88,188 Public Works-Forest Lands Management Division 69,623 196,000 35.5% 126,377 Public Works-Water Supply 1,417,935 3,020,879 46.9% 1,602,944 Public Works-Water Treatment 389,593 1,400,354 27.8% 1,010,761 Public Works-Water Division 1,266,001 3,264,112 38.8% 1,998,111 Public Works-Reimbursement SDC's 74,791 467,670 16.0% 392,879 Public Works-Improvement SDC's 588,844 702,580 83.8% 113,736 Public Works-Debt SDC's - 123,932 0.0% Contingency - 152,000 0.0% 152,000 Total Water Fund 4,365,441 10,043,989 43.5% 5,554,616 WasteWater Fund Public Works-Wastewater Collodion 734,204 2,240,657 32.8% 1,506,453 - Public Works-Wastewater Treatment 728,303 2,022,260 36.0% 1,293,957 Public Works-ReimbursementsSDC's - 192,160 0.0% 192,160 Public Works-Improvements SDC's 15,009 108,090 13.9% 93,081 Debt Service 846,020 1,793,196 47.2% 947,176 Contingency - 149,000 0.0% 149,000 Total Wastewater Fund 2,323,536 6,505,363 35.7% 4,181,827 Electric Fund Electric-Conservation Division 229,603 976,645 23.5% 747,042 Electric-Supply 3,889,675 6,557,504 59.3% 2,667,829 Electric-Distribution 2,436,603 5,189,851 46.9% 2,753,248 Electric-Transmission 148,488 1,048,600 14.2% 900,112 Contingency 381,000 0.0% 381,000 Total Electric Fund 6,704,369 14,153,600 47.4% 7,449,231 6FhNnGNRq O 31 FY 200)tl5 ll36 7 5 Schedule of Budgetary Compliance Per Resolution #2006-11 For the one month ended December 31,2006 Fiscal Year 2007 Year-To-Date Fiscal Year 2007 Percent Actuals Adjusted Used Balance Telecommunications Fund IT-Customer Relations\Promotions 30,419 223,608 13.6% 193,189 IT-Cable Television 531,952 478,746 111.1% (53,206) IT-Internet 310,030 776,310 39.9% 466,280 IT-High Speed Access 128,989 301,179 42.8% 172,190 Contingency - 100,000 0.0% 100,000 Total-Telecommunications Fund 1,001,390 1,879,843 53.3% 878,453 Central Services Fund Administration Department 467,661 1,012,925 46.2% 545,264 Administrative Services Department 892,702 1,919,524 46.5% 1,026,822 IT-Computer Services Division 456,075 982,388 46.4% 526,313 City Recorder 118,055 269,768 43.8% 151,713 Public Works-Administration and Engineering 613,639 1,488,463 41.2% 874,824 Contingency 157,000 0.0% 157,000 Total Central Services Fund 2,548,132 5,830,068 43.7% 3,281,936 Insurance Services Fund. Personal Services 400,000 0.0% 400,000 Materials and Services 425,787 661,291 64.4% 235,504 Contingency 32,000- 0.0% 32,000 Total Insurance Services Fund 425,787 1,093,291 38.9% 667,504 Equipment Fund Personal Services 120,033 266,474 45.0% 146,441 Materials and Services 231,220 519,957 44.5% 288,737 Capital Outlay 243,890 1,415,000 17.2% 1,171,110 Contingency - 42,000 0.0% 42,000 Total Equipment Fund 595,143 2,243,431 26.5% 1,648,288 Cemetery Trust Fund Transfers 9,422 19,000 49.6% 9,578 Total Cemetery Trust Fund 9,422 19,000 49.6% 9,578 6Fue IHWt 31F MTx4 1m 7 6 Schedule of Budgetary Compliance Per Resolution #2006-11 For the one month ended December 31, 2006 Fiscal Year 2007 Year-To-Date Fiscal Year 2007 Percent Actuals Adjusted Used Balance Parks and Recreation Fund Parks Division 1,485,584 3,868,250 38.4% 2,382,666 Recreation Division 470,895 958,700 49.1% 487,805 Golf Division 184,467 416,000 44.3% 231,534 Debt Service - 3,500 0.0% 3,500 Transfers 110,000 0.0% 110,000 Contingency - 35,000 0.0% 35,000 Total Parks and Recreation Fund 2,140,945 5,391,450 39.7% 3,250,505 Youth Activities Levy Fund Personal Services - 96,000 0.0% 96,000 Materials and Services 9,951 2,335,361 0.40% 2,325,410 Total Youth Activities Levy Fund 9,951 2,431,361 0.4% 2,421,410 Parks Capital Improvement Fund Capital Outlay 331,000 0.0% 331,000 Total Parks Capital Improvement Fund 331,000 0.0% 331,000 Total Appropriations $ 30,739,539 $ 78,870,845 39.0% $ 48,131,306 6 FuwoaR W[W 31 FYM7.& ppAp) 7 CITY OF ASHLAND Council Communication Approval of Public Contract for TRANSFORMER DISPOSAL SERVICES Meeting Date: February 6, 2007 Primary Staff Contact: Lee Tuneberg .moo Department: Finance - P rchasi E-mail: tune berl(a ash]an d or.us Contributing Departments: Electri Secondary Staff Contact: Dick Wanderscheid Approval: Martha Berme E-mail: wandersdna ashland.or.us Estimated Time: Consent Age Statement: This action is to request approval from the City Council, as the Local Contract Review Board, to enter into a public contract with Solomon Corporation for Transformer Disposal Services. Solomon Corporation submitted the most advantageous proposal to the City. Staff Recommendation: Staff recommends that the Public Contract for Transformer Disposal Services be awarded to the Solomon Corporation as submitted in their proposal. Background: The Electric Department needs to dispose of 58 surplus transformers labeled as "JUNK" (standard industry term for old transformers that can not be rebuilt to today's standards). Under the Ashland Municipal Code, the disposal of City owned surplus property having a residual value of more than $10,000 shall be subject to authorization by the Local Contract Review Board. For this public contract, an informal Request for Proposal was the chosen solicitation method. Some of the transformers—26 each -were expensed in year's past, which means they are NIS (Not in Stock/Inventory), and the remaining 32 transformers will need to be expensed at a cost of$18,978.27 in the current fiscal year. The Request for Proposal was mailed to eight(8) potential service providers, and four(4) proposals were received. (58)Transformers (8) Reclosers Total Revenue Solomon Corporation $11,958.13 $400.00 $12,358.13 Jerry's Electric $9,027.00 $40.00 $9,067.00 Transformer Technologies (Amount for both transformers and reclosers) $7,116.00 TW Services $5,015.00 -0- $5,015.00 Related City Policies: 2.50.115,Disposal of Surplus and Abandoned Property, the City of Ashland Finance transfer to other departments, direct transfer or sale to political subdivisions, state agencies, or non-profit organizations, sale, trade, auction, or destruction;provided however, that disposal of surplus property having residual value of more than $10,000 shall be subject to authorization by the City of Ashland, Local Contract Review Board. Council Options: Local Contract Review Board can approve the award of the public contract or decline to approve the award of the public contract. Potential Motions: Local Contract Review Board moves to award the public contract to Solomon Corporation. Attachments: Proposal from Solomon Corporation A Request for Authorization—Surplus Property Disposal CITY OF ASHLAND A request for authorization SURPLUS PROPERTY DISPOSAL DATE: January 26, 2007 TO: Lee Tuneberg, Finance Director PREPARED BY: Kari Olson/Larry Christensen CONTENTS APPROVED BY: Ssco,Johnson 1. Description of Surplus Property Purchased by: Description Quantity Identification Current Value Dept and Year Number Electric Old Surplus Transformers 55 See Attachment Over 25 yrs old Electric Automatic Reclosers 8 See Attachment 2. Disposal Method Public Agency or School District Public Sale Name: Type: ❑ Direct Sale - Price/Offer$ Trade-in ❑ Direct Transfer Details: Destruction Method: Non-profit Corporation Other Name: Method: REQUEST FOR PROPOSAL RFP sent to eight (8) potential proposers, received ❑ Direct Sale - Price/Offer$ (4) proposals. ❑ Direct Transfer 1) $12,358.13 2) $9,067.00 3) '$7,116.00 4 $5,015.00 COMMENTS: We would like to request permission to award the sale of the surplus transformers and reclosers to the highest ranking proposer– Solomon Corporation - $11,958.13 (Transformers) and $400.00 (Reclosers) - for a total of $12,358.13. APPROVED BY: _ A� Date: /3D/ 7 Lee Tuneberg Finance Director Revenue fund to be credited with proceeds from the disposal of surplus property: --- —— —— 10/31/06 The Electric Department has a total of 58 Transformers it would like to dispose of because they are surplus and are over 25 years old and in need of reconditioning. Of the total of 58 there is 12 that are in Stock and 26 that were not returned to Stock. Transformers that are in Stock and will be charged out are 3 each 167 K.V.A at $1280.86 each. Total $31842.58 1 each 50 K.V.A. at $1118.11 each Total $1,118.11 10 each 25 K.V.A. at $724.13 each Total $79241.30 7 each 15 K.V.A. at $439.04 each Total $3,073.28 8 each 10 K.V.A. at $380.00 each Total $3,040.00 3 each 5 K.V.A. at $221.00 each Total $663.00 Total $181978.27 We have 8 each Reclosers we also need to Dispose of Automatic Recloser Type " W " Line Material Industries McCraw-Edison Company Impulse withstand 110 kv. Max Des. Volt 15.5 kv. Closing solenoid nominal volt 12.0-13.2 kv. Operating range plus minus 15% Series trip coil Data Cont. current 400 amp Min trip current 560 amp Nom volt 4.8 — 14.4 kv. Max int. current 12,000 8000 amp. Serial Numbers 671, 434, 435, 668, 672, 669, 433 & 5711 Solomon Corporation Wets Line(800)234-2867 Post Office Box 245 •- •- • Telephone(785)655-2191 Solomon, Kansas 67480 Fax(785)655-2502 "The Performance Transformer Company January 10, 2007 TO: Kad Olson-Purchasing Representative CONTRACT FOR DISPOSAL Electrical Equipment Pricing Schedule for City of Ashland Units are located in Ashland, Oregon 2517.5 KVA TOTAL $4.75 per KVA CASH Salvage Electrical Equipment TOTAL$11,958.13 0-49 PPM PCB Content (8)W Type Reclosers $50.00 Each CASH TOTAL $400 Assumptions: City of Ashland will be responsible for loading the units onto a Solomon Corporation transportation vehicle. The oil filled equipment must be tested for PCB and have a concentration of no greater than 49 PPM. Supporting lab results must accompany the transformers at the time of loading. Kari, Solomon hauls 49 PPM and less oil filled units to our reclamation facility. Any unit 50 PPM to 499 PPM must be completely drained, in order for us to haul and dispose of the carcass. Should you elect to send drained units, we triple rinse the carcass and then send down a special salvage line at our reclamation facility to be tom down and scrapped into components. Any unit 50 PPM filled with oil must either be drained for our disposal or I would arrange for disposal through a hired hazardous waste disposal facility, per your instructions. I have also enclosed our audit package with disposal process, CD information, etc. for your review. Should you have any questions, please call either myself or Ann Bush, our environmental manager cQ(800)234-2867 ex t. 182. At this time, The Solomon Corporation team wishes to say thank you for the opportunity to bid your surplus scrap. If there is additional information you require, please call 1-800-234-2867 ext. 186. Sin ly'/�iyl anG3''rs Pr urement Specialist Email: msanderslrDsolomoncoro com Request for Proposal SURPLUS TRANSFORMER DISPOSAL SERVICES January 4, 2007 Nan K.VA. City i Manufacturer Type Serlal Number Primary Secondary Drained PCB PCB Test PRICE/KVA TOTAL Voltage Voltage (Yes/No) Content 1 5 1 1000 RTBE Pole 731050648 7200 120/240 No, ND Oct-87 2 5 1 1002 RTBE Pole 731050656 7200 120/240 No 1 Oct-87 3 5 889 General pectic Pole 8854319 7200 120/240 No 8 Nov-85 $23 . 75 4 10 838 Wesvrghase Pole 63SD1460 7200 120/240 No 1 -MaY� 4.7 5 $47. 50 5 10 1575 Garreral Bec6ic Pole E245549 59K 7200 120/240 No 5 Mar 90 $4 .75 $47 . 50 6 10 904 Westirghouse Pole 6DSM474 7200 120/240 No 3 May-68 4 7 . 5 0 7 10 648 Westirrglnuae Pole 62SK178 7200 120/240 No 2 May 88 8 10 841 WesBng mw Pole 61 SK12 33 7200 120/240 No 2 Mar-88 4 -7 $47 . 50 9 10 1547 Westlnglrouse 001e 6926282 7200 120/240 No ND Jul 91 10 10 808 A6is Chalmers Pole 3431772 7200 120/240 No 1 Sep 81 11 10 802 Aliis{heimers Pole 181411 7200 120/240 No ND Nov-85 ' 12 10 806 Generai Electric Pole F951678-M 7200 120/240 No 1 Jan-97 13 10 1 587 General Bectic Pole .-0 46-57K 7200 120/240 No 1 Nov-86 14 15 7321 General Electric Pole K494324K72A 7200 12040 No ND NOv-86 $4 . 7 5 $71 .25 15 15 1 15 Gerre W BecMc Pole G723653 M 7200 120/240 No 3 Jan-87 4. 7 5 71 .25 16 15 1 181 IGmW Electric Pole 5574166-W 7200 120/240 No 1 APr-87 $4. 75 $71 .2 5 17 15 1 29816w Bectric Pole E579104.60K 7200 120/240 No 11 Mar-90 16 15. 1 827 WestnghoLw Pole.69AA5484 7200 120/240 No 1 Nov-87 19 15 1 79 RT&E Pole 3201736 7200 120/240 No No test $4 , 75 $71 .2 20 15 1 892 Garreral Bectric Pole E579101 60K 7200 120/240 No 11 May-68 $4 .75 $71 21 15 1 801 General Bectric. Pole H552MKW 7200 1201240 No 2 Jul-86 $4 . 75 $71 .2 5 22 25 1 103 RISE Pole 3205549 7200 120/2401 No 1 Nov 87 4 . 75 $ 1 1 8. 7 23 1 25 1 14 Wesbnghrkm Pole 64AM5294 7200 120/240 No 1 Apr-87 $4 . 75 $ 1 18. 7 24 25 414 Genaral Electric Pole 9672961 7200 120/2401 No 10 NOv-86 $4 . 75 $ 1 18 . 7 25 25 805 Moloney Pole 1220055 7200 120/2401 No 4 Sep-86 18. 26 25 306 General pectic Pole 9644843 7200 i2a124ol No 61 Apr 87 $4 . 75 $ 1 1 8. 7 27 25 427 Geneal oaarw Pole 9781985 7200 120/2401 No 16 Mar-87 $4. 75 A18 18 . 7 28 25 631 McGraw Edson Pole 1801939 7200 120/240 No ND Mar-88 $4. 7 5 29 25 549 General Electrw Pole' 9901950 7200 120/240 No 7 J" $,4 . 7 5 30 25 310 Weesrghouae Pole 5386293 7200 120/240 No 2 Dec-87 $4 . 7 5 31 25 446 Garchw Beet w Pole 92633 7200 120/240 No 1 Jan-87 32 25 484 Kuhlman Pole 029668 7200 120/240 No 2 Dec-85 4. 7 5 1 18 7 33 25 397 Wagror Pole ME2571 7200 120/240 No 14 Nov-86 $4 . 75 $1 18. 71 34 25 1589 Urre Pad GV411716 7200 120/240 No NDI Feb-go 4. 75 $ 118 . 7i 35 37.5 146 Urte - Pad 05619107 7200 12040 No 1 Oct-87 4. 7 5 178. 1 36 50 136 WesGnglwuse Pole 65AF8W 7200 120/240 No 1 SeW $4. 7 5 $237. 5i 37 50 691 Wes6rghoLw 001e 59SH1793 7200 120/240 No 1 6ec86 38 50 80 RTSE Pad 692017236 . 7200 120/240 No 1 Apr-87 39 50 11 RTSE Pad 692017232 7200 120/240 . No 1 Apr-87 g 4 . 75 $237. 5( . 40 50 1590 Une Pad GV332010 7200 120/240 No ND Feb-90$4 . 75 $237 . 5( 41 75 1333 RTBE Pole 81107819 7200 120/240 No 1 May 88 4 . 7 5 3 5 6. 2 42 75 154 General Bearw Pole G42D317 65K 7200 120/240 No 1 01 May-88 43 75 167 Allis-Chalmers Pole 3790740 1 7200 1201240 No 1 11 APr-88 4 . 7 5 1$356 . 2 RFP-Surplus Transformer Disposal Services,Page 1 of 2 Request for Proposal SURPLUS TRANSFORMER DISPOSAL SERVICES January 4, 2007 Item K.V.A. City i Manufacturer Type Serial Number Primary Secondary Drained PCB PCB Test PRICE I KVA TOTAL Voltage Voltage (Yes/No) Content 44 75 214SYand Pole PCH3102 7200 120/240 No 1 Mar-87 4 . 75 $356. 2 45 75 215 Stand Pole PCH3101 7200 120/240 No 1 Mar-87 46 75 217 Stand Pole PCC0932 7200 120/240 No 1 Mar-87 47 75 300 Stand Pad 821080 7200 120/240 No 1 Aug-86 4 . 5 3 5 6. 2 48 100 440 Westirgl m -Pole 7200 120/240 No 3 Deo4Z 49 100 441 WesW�phgtte Pole 6346730 7200 120/240 NO 2 Dec-85 g 50 100 412 Westnghouse Pole 6346731 7200 120/240 No 2 o-85 g 4 . 0 51 167 779 WW%house Pole 62Si611 7200 1201240 No 2 P-87 4 . 75 52 167 576 Westin ftm Pole 6944493 12000 120/240 No 2 D 4 .7 5 793 . 25 53 167 134 Wesbrghpise Pole 6944494 12000 120/240 No 2 4 7 9 3 .2 5 54 167 575 Westinghorse Pole 6926480 12000 1201240 No 2 D g , 7 2 5 55 167 705 Westinghouse Pole 60SM1408 7200 120/240 No 5 TOTAL 11 ,9.56 1 RFP.Surplus Transformer Disposal Services,Page 2 of 2 Request for Proposal SURPLUS RECLOSER DISPOSAL SERVICES January 4, 2007 Description of Reclosers: Automatic Recloser Type "W" Manufacturers: Line Material Industries McCraw-Edison Company Impulse withstand 110 KV Max Des Volt 15.5 KV Closing Solenoid Nominal Volt 12.0— 13.2 KV Series Trip.Coil Data Cont. Current 400 Amp Min Trip Current 560 Amp Nom Volt 4.8— 14.4 KV Max Int. Current 12,000 8,000 Amp Serial Number Price/Each 433 $50 . 00 434 $50 . 00 435 $50..00 668 $50. 00 669 $50 . 00 671 $50 . 00 672 $50. 00 - 5711 $50.00 TOTAL $400 . 00 RFP—Surplus Recloser Disposal Services,Page 1 of 1 q Oh 9:4kam RM RO 'POwedul T+ansfOrm6r;$Mubons eo�sn 785655-2191 103 West Maln Street FAX 7856552602 Solomon, Ken 67480 '; www.solomoncorp,com Toll Free 800.234-2867..! Facility Audit Package Solomon , Kansas Contact: Anna Bush Title: Environmental Manager Telephone: 1-800-234-2867, Ext 182 Revised: January 3, 2007 Mission Statement At Solomon Corporation, our mission is to provide quality products and services that help our customers maintain a solid source of electrical power. We offer solutions throughout the equipment life cycle, from manufacturing, maintenance and finally, disposal. Our managers and employees have a common goal: to set the industry standard for quality and service. Our success is measured by our ability to exceed customer expectations. An Overview of Solomon Corporation Today Solomon Corporation in Solomon,Kansas,is a premier distribution electrical transformer company. The company conducts business with utility companies nationwide. These customers include municipalities, rural electric cooperatives and investor-owned utilities, as well as industrial users. Solomon Corporation has contracts with some of the largest utilities in the nation including Oncor,, Xcel Energy,Nevada Power, Oklahoma Gas and Electric, and Consumers Energy. Products include transformers (polemount, padmount and substation), voltage regulators and oil circuit reclosers. Othei services provided by Solomon Corporation are performed by field service crews,expanding the company's capabilities within the industry. These crews provide customer site testing, maintenance and repair of electrical equipment as well as dismantling and reclamation of oversized transformers, some individually weighing as much as one million pounds. The Beginning Three partners set out to go into the business of repairing and selling electrical transformers. They were seeking a central United States location and began to canvass the Midwest,particularly Kansas, for a small town in which they could start their shop. The proximity of 1-70 for transportation and the broad customer base offered by many rural electric cooperatives and municipalities in Kansas and neighboring states supported the choice of Solomon. On April 1, 1971, Solomon Electric Supply began operations with six employees. Growing Years Within three years,the company's annual sales were approximately$3 million and employment had risen to 30 people. For a few years the company struggled while it sought to create a market niche with a high quality transformer product. The early 1980s brought a new focus on quality products and exceptional customer service, the building blocks of today's Solomon Corporation. In 1987, the company found its mark and began to achieve considerable growth in sales. Annual sales reached$3.4 million with 60 employees. This time period also showed a substantial growth in facilities at Solomon. Buildings were upgraded and new facilities added. Growth in the 90s 1991 saw the opening of a new, state-of-the-art transformer reclamation facility in Solomon. This 28,000 square feet facility alone is over five times the size of the original Solomon Electric building. Efficiencies have been achieved through streamlined production capabilities and innovative process development. Today, in addition to sales of remanufactured units, transformer reclamation (the recovery of metals from salvage transformers) also provides significant revenues to the company. Metals recovered include copper, aluminum, steel and brass. The early 1990s also brought three major building projects to the manufacturing facilities. As a result, this increased the quantity of the units manufactured and expanded our capacity to produce power class substation-type transformers. With an annual payroll of$10 million and employees numbering 385, our people are our most valuable asset.Employee benefits and attractive wages coupled with a strong work ethic enable the company to maintain a highly skilled work force. The training programs utilized provide Solomon with some of the most proficient and experienced personnel in the electrical equipment/service business. A branch facility in Decatur, Tennessee began operation in January 1996. This was initially developed to finmel product to the Kansas location to insure continued growth and maintain a competitive edge in a freight intensive business. Based on customer demand, this facility has expanded and currently provides transformer sales,repair and reclamation. As of January, 2005 a branch facility began operation in Grand Junction, Colorado. This facility focuses on oil circuit recloser sales and servicing as well as regulator sales and servicing. Over the last six years,the company has averaged a 20%annual sales growth resulting in company wide sales projected to be nearly $40 million for the next fiscal year. The Future Solomon Corporation will continue to grow. Through remanufacturing, reclamation and field- service operations,a nearly 20 percent annual sales growth is expected to continue for the next fiscal year. The philosophy of the company remains to stay ahead of the market by anticipating shifts,or changes in customer demand. Constant attention to quality demands within the industry keeps Solomon Corporation moving forward. Company Information Corporate Office: 103 W Main Transformer Repair&Remanufacturing PO Box 245 Operations began April 1971 Solomon KS 67480 75,000 sq ft Phone: 785-655-2191 Fax: 785-655-2502 Reclamation: 302 W 7d Street Facility constructed September 1991 Solomon KS 67480 31,600 sq ft Phone: 785-655-2191 Fax: 785-655-2502 EPA ID No. KSO 002 431 880 Branch Location: Hwy 58 South Transformer Repair PO Box 1009 OCR Repair Decatur TN 37322 Reclamation Phone: 423-334-2666 24,000 sq ft Fax: 423-334-2662 EPA ID No. TNO 001 577 485 Branch Location: 2377 Leland Avenue Transformer Repair Grand Junction, CO 81505 OCR and Regulator Repair Phone: 970-241-0721 7,000 sq ft Fax: 970-243-2902 KS Taxpayer No. 18-0689 Federal ID No. 48-0777539 NAICS Code: 335311 - Shop NAICS Code: 42193 —Recyclable Material Wholesalers Reeulatory US EPA Region VII KS Dept of Health& Environment 901 N 5'b Street 2501 Market Place Kansas City KS 66101 . Salina KS 67401 Mazzie Talley, Branch Lead Rick Brunetti, District Administrator 913-551-7395 785-827-9639 Permits US EPA—None required KDHE Air Source Operating Permit No. 0410020 Class II Waste Recvcline Parameters Material is received into the facility, destroyed by disassembly into component metals. Financial Bonding Company: Sunflower Insurance Group 217 S Santa Fe Avenue Salina KS 67401 785-825-0286 Bank Reference: UMB -National Bank of America Solomon State Bank 100 South Santa Fe 126 West Main " Salina KS 67401 Solomon KS 67480 785-8264000 785-655-2941 Credit Reference: Warco Robson Oil Route 2 PO Box C Marthasville MO 63357 Abilene KS 67410 314-433-2212 785-263-2503 � \ \ \ 7 ( \ \ . �.G \\ \ \ \ j = Q�ƒ, // §/ }k } \ \ \ / ■ } u ¥ § > = 2 3 2 \ § \ / } / \ C: cu :3 ( >1 ( 3 E (E § % % ) /) ) ) a r r0 r. | wc � — < 0 to B / � k ) / 22 � \ § § &\ ) R / ] ] } \ ) 5 § Ac ; j \ 7 \ » . 0 § u k ) ) Partial List of Active Disposal Facility Customers Kansas City Power&Light Aquila-Missouri PO Box 418679 PO Box 48 Kansas City,MO 64141 Warrensburg,MO 64093 816-245-3642 816-737-7777 Jim Franklin Mike Spencer Oklahoma Gas&Electric Northern Indiana Public Service Co Box 321 M/C PS37 801 E 86's Avenue Oklahoma City,OK 73101 Merrillville,IN 46410 405-5534842 219-647-4406 Andy Knapp Al Moon We Energies Austin Energy' 231 W Michigan St 2412 Kramer Lane Milwaukee,WI 53203 Austin,TX 78758 414-2214884 512-505-7277 Rob Hubert Jim Eldred Center Point Energy PO Box 34819 Houston,TX 77234 713-945-6240 Carol Espitia Alliant Energy(WPL/IPL) 935 WBR Townline Rd Beloit, WI 53511-8823 608-364-6536 Jim Weins Xcel Energy 9500 Interstate 76 Henderson,CO 80640 303-628-2665 Rick Davis TXU Electric Utilities 2471 S Dallas Avenue Lancaster,TX 75146 972-218-2840 Eddie Spurgin Environmental Setting Solomon Corporation is located in an industrially zoned,23 acre site on 7`b street in Solomon,Kansas. The acreage dedicated to transformer reclamation is 5 acres. The previous use of the property was strictly agricultural. To the North and West of the property is agricultural. Commercial businesses are to the East that consists of a propane gas distributor and a Portland cement plant. A residential area is located to the South of the property. About 1,075 people live within a one mile radius and 1,175 within a three mile radius. The nearest public facility is the school which is a one-half of a mile away. Solomon's reclamation facility is not in the 100-year flood plain. The nearest waterway,the Solomon River, is approximately one mile from the facility. The nearest lake is Milford Reservoir located 45 miles away. The average annual rainfall is 27 inches. The local drinking water source is city well water from a well that is about three miles from the facility. The water table is approximately 60 feet. Laboratory The goal of Solomon Corporation Laboratory is to produce data of the highest quality for compliance with 40 CFR Part 761. The laboratory is organized and operated to meet the National Accreditation Committee(NELAC)standards. The laboratory has a policy to ensure its personnel are free from any commercial, financial and other undue pressures which might affect the quality of work. The laboratory has a Quality Assurance Plan and Standard Operating Procedures in place to ensure laboratory personnel follow standards. The Kansas Department of Health and Environment has issued Certificate No. E-10345 as being accredited for performing environmental analyses for EPA Method 8082:PCB-1242;PCB-1254;PCB- 1260. The laboratory has reciprocity with NELAP. Site Security Measures Facility Operations Security is provided by a chain-link fence which runs along the facility's boundaries:Routes of entry to the facility are secured by doors and gates. Entry to the processing areas is through the central office area. The gates accessing the parking area will be locked at the end of each work shift and remain locked throughout the night until normal work starts the next business day. In addition, all exterior doors are locked when the facility is not in operation. Keys are issued to authorized personnel only. Visitors, contractors, sales persons, etc. entering the facility must be accompanied by an authorized member of the management staff. During business hours, access to visitors and drivers will be provided through the main office area only. Materials Storage Due to the above-mentioned security precautions, the threat of vandalism is minimized. Access to facility storage and handling areas,as well as the equipment and storage devices found in those areas, is restricted to authorized personnel only. Piping located throughout the building is 1-1/2 inch steel encased in 3 inch PVC for secondary containment. Storage areas and oil tanks are all above ground and are located within the building itself. r Waste Acceptance Material: Solomon Corporation accepts the following electrical equipment: • Electrical Equipment tested< 50 ppm • Electrical Equipment originally manufactured NonPCB (nameplated) • Electrical Equipment tested 50-499 ppm only if drained of fluid • Drums of oil tested<50 ppm • NonPCB capacitors (nameplated NonPCB) • Oil Circuit Reclosers (OCRs) Sampling: Electrical equipment must be tested for PCB content prior to shipping to Solomon Corporation.The test data will be recorded at the time of unloading. Customer must provide laboratory results. If there is a discrepancy between the unit and the test results,the unit will be isolated and Solomon personnel will extract an oil sample from the unit to verify the original analysis. Discrepancies are determined by looking for inconsistent information: • Lab report does not correspond to what is written on the unit • Lab report does not correspond to labeling of unit • Lab report does not correspond to nameplate information • There are two different type of PCB labels on the unit • Customer says it is nameplated NonPCB,but doesn't qualify under Solomon Corp policy • Oil has an"off' smell indicating oil is not mineral oil The samples will be analyzed by individual Gas Chromatography (GC) performed by Solomon Corporation Laboratory utilizing EPA approved methods for analysis of PCBs. NonConforming Material: Any equipment received into the facility that does not or is suspected of not conforming to the material requirements will be immediately isolated,properly labeled and marked,then reported to the Environmental Administrator's office for notification of the original generator. The unit will be stored in the PCB Storage Area for disposal pending shipment to an EPA approved disposal facility. NonConforming Material consists of: ■ Electrical Equipment untested for PCB content ■ Bushings untested for PCB content that have been removed from the transformer ■ 50499 ppm units that are full of oil ■ Drums of oil>49 ppm ■ Drums of oil untested for PCB content ■ Any item tested at>499 ppm PCB - ■ Any debris (soil,test kits, floor dry,trash, etc) at any PCB level ■ Any drummed liquid(water, solvent,anti-freeze)...other than NonPCB mineral oil ■ Any item with visible fluid leakage ■ Retrofilled Units - if originally>499 ppm(unless approved by the Environmental Department) Shipping Requirements: Each load received must conform to current state and federal regulations: ■ Labels- TSCA, DOT ■ Shipping Containers - DOT ■ Bill of Lading, Load Sheet, Laboratory Analysis Operating Procedures Overview The primary purpose of this facility is the disposal through destruction and recycling of transformers and related electrical equipment that is less than 50 ppm PCB. Oil filled material will be drained,stored in bulk tanks,then shipped directly to the appropriate disposal facility. We also accept drained 50-499 ppm carcasses for reclamation. Material Solomon Corporation accepts two types of electrical equipment for reclamation: ■ Equipment tested less than 50 ppm PCB these units can be accepted full of oil or drained. ■ Equipment tested 50 to 499 ppm PCB - these units MUST BE drained of fluid prior to loading onto transportation vehicles. In order to stay within these parameters, Solomon requires the generator provide certified gas chromatography laboratory analysis prior to transport. Unloading Distribution transformers shall be unloaded from their respective transport vehicles into the Transformer Storage Area via an overhead hoist and placed on roller track. As the unit is placed in the Transformer Storage Area it will be logged in by the unloading personnel. During the log in procedure each transformer will be inspected for the presence of,or the potential to leak. Any leaking or suspect units will be drained immediately into an appropriate container, with both the carcass and the fluid being held pending approval to process. Any leaking transformer which involves a spill will be cleaned up in accordance with 40 CFR 761.125. Due to their size and weight,substation transformers are drained of fluid prior to shipment. The carcasses will be unloaded via the 35 ton overhead crane and placed on the floor of the substation storage area. Tracking Procedures and Recordkeeping As each unit is unloaded,it is reconciled with the incoming paperwork provided by the generator and/or truck driver. Discrepancies are immediately reported to the generator. The load will not be processed until the discrepancy is resolved. The load is logged into the computer data entry system. The load is assigned a unique load number which details the customer's name and address,date shipped from the generator site and the date received at Solomon Corporation. The individual units on the load are assigned a unique inventory control number which is used for tracking and inventory counts. Individual units are tracked by the inventory control number information consisting of: KVA size, Manufacturer, Serial Number, Company Number (if provided), Phase, Type of Equipment (polemount, padmount, etc),Lab Number and PPM. The entire computer system is backed up nightly using magnetic tape. The tape is archived for five days. Weekly backups are also done and archived every fourth week. Copies of historic computer records are kept off-site. In addition to computer records, hard copies of Receiving Sheets,Bills of Lading, and Lab Reports are kept. The paper records are kept in the office for a one year period, and then placed in storage in fireproof vaults. These are retained indefinitely. Once the unit has been destroyed, a destroy code and date are input into the database. A Certificate of Disposal is issued once the entire load of units has been destroyed. A Certificate of Disposal can be regenerated at any time per customer request. Oil Removat Draining Process Transformers will be moved to the appropriate drain area by means of roller track. It will be moved from the roller track onto the drain pan via an overhead hoist. The lid.will be removed. A steel rod will be used to puncture the bottom of the transformer tank. The tank is allowed to drain over a steel grate for two to three hours to allow for complete draining. The oil removed from transformers is stored in aboveground bulk tanks pending shipment to an oil marketer. Disassembly Process (0-49 ppm PCB) Distribution: After the draining process is complete, the transformer is moved by conveyor to the untanking area. The conveyor is equipped with secondary containment in the form of a steel pan designed to contain any release of residual fluid occurring during the move or the untanking procedure. Within the untanking area all components are removed from the transformer tank including the core and coil assembly. The components are forwarded via storage bins to the bushing processing area. The bushings are crushed. The metals are recovered for shipment to smelters and the porcelain is sent to an approved landfill. The core and coil assembly is forwarded via overhead hoist to the teardown area. The transformer tanks are then dusted with absorbent material and the nameplate is removed. The tanks are crushed and loaded for shipment to smelters. Once at the teardown area the core and coil assembly will be dismantled,separating the coil windings and insulation from the core steel. The core steel will then be loaded for shipment to smelters. The coil wire and insulation will be moved to the separation area. Substations: Substation transformers, due to their size, are placed in the substation untanking pit for the untanking procedure. This allows for better access when removing the lid and insulators, particularly on taller units. The unit is prepared for untanking by removal of the lid and insulators, disconnection of all switches and removal of the mechanisms attaching the core and coil assembly to the tank. The core and coil assembly is lifted from the tank by means of the 35-ton overhead crane and placed in a steel containment pan for further disassembly. Any residual fluid is removed. The tank is dusted with absorbent material and moved to the tank cutting area for cutting to size for shipment to smelters. The disassembly process continues with finther disassembly of the core and coil assembly by removal of the coils and insulation from the core steel. The top portion of the core steel is removed manually, and then the coils are pulled off the steel legs utilizing the overhead crane. The coils and insulation are then moved to the separation area and the core steel is loaded for shipment to smelters. Disassembly Process (50-499 ppm PCB) The disassembly process is the same as for 049 ppm units with these additional steps: 1) The distribution untanking takes place on a dedicated untanking line. 2) Prior to leaving the untanking area, the non-porous surfaces are decontaminated in accordance with 40 CFR 761.79. This process involves triple rinsing with mineral oil. Each rinse will use a volume equal to approximately 10 percent of the tank capacity. 3) The residual PCBs from the core and coil assembly and the other porous components will be disposed in a scrap metal recovery oven in accordance with 40 CFR 761.72. Separation The coil wire,comprised of either copper or aluminum,is separated from the paper insulation by one of two methods. The coils and insulation will be separated mechanically utilizing a process called granulation. In this process the coils are fed into a Triple/S Dynamics Cable Recycling Plant;this system performs the separation process by grinding the coils into granules and passing the granules through a series of air separators yielding clean copper or aluminum granules. (The 50 to 499 ppm core/coil assemblies will be baked in the scrap metal recovery oven prior to granulation.) .In instances where mechanical separation is not feasible,the coil and insulation will be burned in the incinerator. This process bums the paper off the coil wire. The incinerator is operated under a permit issued by Kansas Department of Health and Environment. In both cases the recovered copper and/or aluminum are shipped to smelters. Waste Streams Description Vendor Disposition #1 Copper PMX -Cedar Rapids,IA Smelted Samuels Recycling—Madison, WI Metal Exchange—St. Louis,MO Warrenton Copper Recycling—Warrenton,MO Lakeside Metals—Cleveland,OH 42 Copper Metal Exchange—St. Louis, MO Smelted Warrenton Copper Recycling—Warrenton, MO Aluminum Metal Exchange—St. Louis,MO Smelted Lakeside Metals—Cleveland,OH Brass Maher International—Bamaby BC Canada Smelted Mild Steel Glickman Recycling LLC—Wichita,KS Smelted Silicone Steel Cast Iron Bushing Porcelain N.R. Hamm Landfill Municipal Solid Paper Fluff PO Box 17 Waste Landfill Ash Perry,KS 66073 KDHE Permit No. 394 Industrial Solid Waste Disposal Authorization No. 05-0372 (porcelain) Industrial Solid Waste Disposal Authorization No. 05-0683 (fluff) Industrial Solid Waste Disposal Authorization No. 05-0573 (ash) <50 ppm Oil Environmental Management of KC,Inc. Chemical Detoxification 861 S 66'b Terrace Kansas City, KS 66111 EPA ID No.KSR 000 007 229 50-499 ppm Solomon Corporation Scrap Metal Oven Incineration Carcasses Source Permit No. 0410020 Decontamination >49 ppm Oil Clean Harbors(PPM)LLC Chemical Detoxification Debris>49 ppm Rt 3,Box 65 Incineration Coffeyville, KS 67337 EPA ID No.KSD 981 506 025 Capacitors US Ecology TSCA Landfill Bushings PO Box 578 Beatty,NV 89003 EPA ID No. NVT 330 010 000 Field Service Solomon Corporation has performed field service work on thousands of transformers without incident. We would welcome the opportunity to have you discuss your specific requirements prior to any decision you make concerning our capabilities for meeting your needs. In large measure,the specific answer would be dictated by the size and the contamination level of the equipment. In general, our preferred method of operation would be to do as much of the work as possible in our facility to limit the possibility of spill or exposure incidents at the customer's site. Where work must be done at the customer's site to allow for rigging and removal of equipment or to facilitate transportation of materials, any field dismantling is performed in accprdance with the customer's specifications. Transportation Solomon Corporation maintains complete capabilities for transportation of electrical equipment. Generally, the most convenient means of addressing our transporter and delivery requirements is to utilize our own fleet. Scheduling requirements are relatively flexible compared to much of the industry. These vary by type of service required and may be obtained through your normal Solomon contact. Transporter Permits EPA ID No. KSD 054 757 646 Registration Expiration State Number Date California 3663 04/30/2007 Colorado HMP-03159 10/25/2007 Illinois UPM-0072332-OH 01/01/2007 Michigan UPM-0072332-OH 01/01/2007 Minnesota UPM-0072332-OH 01/01/2007 Missouri 06H26002000 07/15/2007 Nevada UPM-0072332-OH 01/01/2007 Ohio UPM-0072332-OH 01/01/2007 Oklahoma UPM-0072332-OH 01/01/2007 Texas 47047 None West Virginia UPM-0072332-OH 01/01/2007 US DOT ID No. 072332 US DOT Hazardous Material Certificate of Registration No. 060706 550 0970 (expires 06/30/07) Subcontractors Incineration Clean Harbors (PPM) LLC, Rt 3, Box 65, Coffeyville KS 67337 EPA ID No. KSD 981 506 025 oil and debris.>49 ppm PCB; electrical equipment >499 ppm PCB Oil Marketer Environmental Management of KC Inc, 861 S 66th Terrace, Kansas City KS 66111 EPA ID No. KSR 000 007 229 oil <50 ppm PCB John Scoggins Company, PO Box 1388, Sallisaw, OK 74955 EPA ID No. OKD 075 669 788 oil <50ppmPCB PCB Landfill US Ecology, Inc., PO Box 578, Beatty,NV 89003 EPA ID No.NVT 330 010 000 capacitors, bushings Metals Brokers Glickman Recycling LLC —Wichita KS mild steel, silicone steel, cast iron Metal Exchange— St Louis MO and Lakeside Metals—Cleveland OH aluminum Maher International—Barnaby BC Canada brass PMX—Cedar Rapid IA; Samuels Recycling—Madison WI #1 copper Metal Exchange—St Louis MO;Warrenton Copper Recycling—Warrenton MO #2 copper Hazardous Waste Transporter Clean Harbors Environmental Services Inc, 1 Hill Avenue, Braintree MA 02184 EPA ID No. MAD 039 322 250 SPCC Plan Solomon Corporation has a Spill Prevention Control and Countermeasures Plan in place in accordance with 40 CFR 112. This Plan is intended to prevent pollution caused by the discharge of mineral oil with and without low concentrations of PCBs. This Plan is intended to be an integral environmental document in conjunction with Solomon Corporation's environmental compliance practices and procedures. This Plan has been developed from data, information and drawings provided by Solomon facility personnel. A complete facility survey was performed to identify spill potential at oil storage and unloading facilities,loading docks,maintenance areas and other remaining areas, which have spill potential. The entire Plan is available for review at Solomon Corporation corporate office. 0 EPA Inspections January 5,2006 James Dworak of the US EPA,Region V1 conducted a routine PCB inspection of our facility.No obvious deviations of the final PCB rule of the Toxic Substance Control Act noted during this inspection. March 22,2005 Ralph Pugh and James Dworak of the US EPA,Region VII conducted a routine PCB inspection of our facility. No obvious deviations of the final PCB rule of the Toxic Substance Control Act noted during this inspection. December 8,2004 Ralph Pugh of the US EPA, Region VII conducted a routine PCB inspection of our facility. No obvious deviations of the final PCB rule of the Toxic Substance Control Act noted during this inspection. July 22,2004 Ralph Pugh of the US EPA, Region VII conducted a routine PCB inspection of our facility. No obvious deviations of the final PCB rule of the Toxic Substance Control Act noted during this inspection. December 10,2003 Ralph Pugh of the US EPA, Region VIl conducted a routine PCB inspection of our facility. No obvious deviations of the final PCB rule of the Toxic Substance Control Act noted during this inspection. April 16,2003 Ralph Pugh of the US EPA, Region VII conducted a routine PCB inspection of our facility. No obvious deviations of the final PCB rule of the Toxic Substance Control Act noted during this inspection. Employee Training All employees must complete a comprehensive initial training and must participate in periodic update and annual refresher training. This consists of a common curriculum for all employees, encompassing an overview of all company activities, regulatory requirements, environmental and occupational safety and health hazards, and hazard communication standards. Beyond this initial training, each new employee's further training is tailored to their initial job responsibilities. Plant employees receive more in depth training including SPCC(Spill Prevention, Control and Countermeasures) Plan requirements and procedures, and in the standard operation procedures for their particular department.All of these include extensive safety training. CITY OF ASHLAND Council Communication Acceptance of a Deed of Dedication Meeting Date: February 6,2007 Primary Staff Contact: Michael W. Franell Department: Legal E-mail: franellm @ashland.or.us Contributing Departments: i eering Secondary Staff Contact: Approval: Martha Ben n E-mail: Estimated Time:Consent Statement: The Waldorf School has negotiated dedication of a right of way to facilitate a public bicycle and pedestrian path required as a condition of their planning Approval. The City is required to formally accept any land dedications to the City. Background: As a condition of planning approval, the Waldorf School, a private elementary school proposed on property located at 631 Clay Street, was required to record a pedestrian/bicycle easement from Clay Street to the Clay Street Park. Condition No. 8 reads: That the pedestrian path linking Clay Street to the westerly property line, and the pedestrian crossing linking the pedestrian path to Clay Street Park shall be installed with the landscaping improvements prior to issuance of the first certificate of occupancy for Phase I construction. That a public pedestrian easement shall be recorded for the length of the path from Clay Street to the Clay Street Park and evidence submitted to the Planning Division prior to issuance of a building permit. That the applicant shall be responsible for the full cost of the pedestrian, improvement, design and installation. That evidence of the approval of the crossing design and location by the Ashland Parks Department shall be submitted prior to installation of improvements. (emphasis added). The deed of dedication will facilitate replacing the easement the Waldorf School has already granted with a new path, which will eliminate the need to build a bridge across a creek. Public Works has reviewed the proposed dedication and has approved its use to meet the planning department condition. Staff Recommendation: Authorize the Mayor to accept the Deed of Dedication. 1r, Potential Motions: I move the Council authorize the Mayor to accept the deed of dedication for a public bicycle and pedestrian path. Attachments: Executed Deed of Dedication. After recording return to: City of Ashland, Oregon 20 E. Main Street Ashland, OR 97520 Send tax statements to: City of Ashland, Oregon 20 E. Main Street Ashland, OR 97520 DEED OF DEDICATION FOR PUBLIC BICYCLE AND PEDESTRIAN PATH KNOW ALL MEN BY THESE PRESENTS, that Jeffrey Hauptman (hereinafter "Grantor"), being the owner of the herein described property, does, pursuant to ORS 92.175(1)(c), hereby dedicate, grant, bargain, sale and convey to the City of Ashland, a municipal corporation of the State of Oregon, its successors in interest and assigns (hereinafter "Grantee"), and Grantee hereby accepts from Grantor, all of Grantor's interest in the following real property located in the City of Ashland, Jackson County, Oregon, such property to be used by Grantee for public access for pedestrians and bicyclists and for no other purpose, bounded and described as follows, to wit: A 9.00 foot wide Public Pedestrian Easement to the City of Ashland, over and across Lot 3, Block I, Agape Subdivision in the City of Ashland, Oregon, according to the official plat thereof, now of record in Jackson County, Oregon, and described within Instrument No. 2005-059290 of the Official Records of said County, lying situate within the Northwest Quarter of Section 14, Township 39 South, Range 1 East of the Willamette Meridian, in the City of Ashland, Jackson County, Oregon, more particularly described and bounded as follows, to wit; Beginning at a 5/8 inch iron pin at the Northeast Comer of Lot 3, Block 1, Agape Subdivision according to the official plat thereof, now of record in Jackson County, Oregon; thence South 00°02'01" East along the east line of said Lot 3, a distance of 9.00 feet; thence North 89°54'47"West, parallel with and 9.00 feet South of the North line of said Lot 3, a distance of 16.00 feet; thence North 00°02'01"West parallel with and 16.00 feet West of the East Line of said Lot 3, a distance of 9.00 feet to the North line of said Lot 3, thence South 89 054'47" East, 16.00 feet to the POINT OF BEGINNING. TO HAVE AND TO HOLD, the above described and granted premises unto the said Grantee, its successors in interest and assigns forever. The true consideration for this conveyance is $1.00, the receipt of which is hereby acknowledged by Grantor. v�r IN WITNESS WHEREOF, the Grantor has executed this inst ent this' day ofd, 2006. e a ptman STATE OF OREGON ) ss. County of Jackson ) This instrument was acknowledged before me on this 3d day of October, 2006, by Jeffrey A. Hauptman. Before me: ,)FFICIAL SEAL NANCY SNOW .NOTARY PUBLIC-OREGON. - '' ) COMMISSION NO.384505 �L '��'sj t_ `� MY COMMISSION EXPIRES SEPT 08,2008 Notary Publ c for Oregon (� My commission expires: ACCEPTED BY: City of Ashland, a municipal corporation of the State of Oregon by: John Morrison, Mayor Date C I T Y OF ASHLAND Council Communication Approval for Ashland to Continue in Lawsuit Meeting Date: February 6,2007 Primary Staff Contact: Michael W. Franell l Department: •Legal E-mail:franellm @ashland.or.us Contributing Departments: Secondary Staff Contact: Approval: Martha Benne E-mail: Estimated Time: Consent Statement: Ashland as well as a number of other Oregon cities filed a lawsuit against Qwest communications when they unilaterally quit paying franchise fees for their utilities located in the public right of way. The Federal District Court has ruled in favor of the cities on all counts of the lawsuit. Qwest has appealed that decision to the 91i Circuit Court of Appeals. The League of Oregon Cities has helped the cities involved by hiring the Beery& Elsner firm from Portland to represent our view point. They need the permission of the City to continue representing us in the appeal. The LOC staff has requested the League Executive Board to authorize continued participation by the League in the legal costs. That approval has not yet been granted,but it is anticipated that it will be approved. Council Options: Authorize Ashland's continued participation. Authorize Ashland's continued participation contingent on the financial participation by the League of Oregon Cities Don't authorize Ashland's continued participation. Staff Recommendation: Authorize Ashland's continued participation in the lawsuit. Potential Motions: I move the City Council authorize Ashland's continued participation as a named party in the appeal by Qwest to the 9h Circuit Court of Appeals in the franchise case. Attachments: None. C I T Y OF ASHLAND Council Communication Request for Approval of Fee and Policy Recommendations Meeting Date: February 6, 2007 Primary Staff Contact: Rachel Teige Department: Parks and Recreation E-mail: telgera(�ashland.or.us Contributing nts: None Secondary Staff Contact: Don Robertson Appr al: Estimated Time: Public Hearing Statement: As part of the goals of the Ashland Parks and Recreation Commission in the 2005-2006 fiscal year, a fee and policy study for all of the indoor and outdoor facilities was conducted. Staff spent time reviewing all facility fees and policies within the department and researched fee and policies throughout the state of Oregon. Staff Recommendation: Staff recommends approval of Parks and Recreation commission recommendations on fees.and policies. Background: After the research and comparisons were conducted, cost of services (expenditures) were determined which include custodial time, utilities, facility manager staff time, materials and services and the City of Ashland facility use fee. Comparisons were done on revenues and expenditures and it was determined that at this time cost recovery is at 17.5%. In October, November and December of 2006 and January of 2007, the Parks and Recreation Commission held study sessions to discuss all rentable indoor and outdoor facilities managed by the Ashland Parks and Recreation Department. Discussed at the meetings were sports fields, Lithia Park and indoor facilities including The Grove, Pioneer Hall, Community Center and Hunter Park Senior Center. Current and past facility users were invited to attend and give their input and feedback. Staff gave a presentation at each of the meetings and included research and comparisons regarding policies and fees from around the state of Oregon. User feedback was taken into consideration and reasonable fee adjustments at 31% cost recovery were recommended. Parks Commissioners asked staff to prepare fee adjustments to consider with 50% cost recovery for comparison. During the fee and policy study some concerns came to light on groups that currently use the Community Center and Pioneer Hall. The first concern is grandfathered groups. These groups have free use of buildings based on donation of buildings to the City of Ashland. These groups include the American Legion, VFW, Boy Scouts and the Women's Civic Club. The second concern dates back to November 3, 1987 in which the Ashland Community Folk Dancers which are considered a grandfathered group, but actually pay the long term user fee of$10 per hour, were given exclusive use of the Community Center each Friday evening. A policy was adopted by the City Council whereby the grandfathered groups, may be bumped no more than six times per year. The bumping process can only happen if it is for another community event of at least 50 people. Private events such as weddings, parties and private meetings are excluded. (see attached city council minutes from 11/3/87). Friday nights at the community center could be revenue generating if staff had the ability to book private events at the weekend hourly rate cost. The third concern is the City facility use fee of$44,000 that the Parks and Recreation department began paying in fiscal year 2005-2006 for long term building maintenance on all indoor facilities. The Parks and Recreation Commission feels that if the current policy of grandfathered groups stays in place that the facility use fee should be partially waived for those groups grandfathered prior to the institution of this fee. Staff presented the final fee and policy recommendations to the commission on January 22, 2007. The Parks and Recreation Commission approved the recommendations 1. Make a recommendation to the City Council on the proposed fee increases that will recover 31% of the costs associated with operating and maintaining all facilities. 2. Recommend to the Ashland City Council that all users of facilities that have historically used the facilities for free, continue to be able to do so. 3. Recommend to the Ashland City Council that the Ashland Folk Dancers continue to receive the long term user rate and that Ashland Parks and Recreation Department staff have the ability to move the folk dancers to another facility at their discretion based on other reservations at the Community Center. 4. Recommend implementation of the new fee and policy schedule to begin on July 1, 2007. 5. Complete an annual review of all facility fees and adjust rates. Related City Policies: Council Options: 1.Approve recommendations from Ashland Parks and Recreation Commission. 2.Send back recommendations for adjustments. 3.Deny recommendations. No change to current fee structure. Potential Motions: Move to approve on behalf of the Parks and Recreation Commission the recommended fee and policy schedule for indoor facilities at a cost recovery or 31% beginning on July 1, 2007 and that all current grandfathered groups continue to have free usage based on the past donation of the buildings to the City of Ashland, and that the Ashland Folk Dancers be moved to another facility based on the needs of other private or public events. Attachment: Fee and Policy Recommendations 11/3/1987 City Council Minutes-Bumping Policy Recommendations from Ashland Parks and Recreation Commission Ir, ASHLAND PARKS AND RECREATION COMMISSION 340 SO. PIONEER STREET ASHLAND,OREGON 97520 COMMISSIONERS: '" F AS Don Robertson h Diane Amarotico �� _ ~a Director JoAnne Eggers Michael Gardiner r TEL.:(541)488-5340 Jim Lewis - FAX:(541)488-5314 Rich Rosenthal REGO MEMORANDUM TO Ashland Parks and Recreation Commission FROM Rachel Teige, Recreation Superintendent DATE January 17, 2007 SUBJECT Facility Fee and Policy Study Recommendations Action Requested Recommend approval. ' Background In November and December of 2006 and January of 2007, the Parks and Recreation Commission held three study sessions to discuss all rentable indoor and outdoor facilities managed by the Ashland Parks and Recreation Department. Discussed at the meetings were sports fields, Lithia Park and indoor facilities including The Grove,Pioneer Hall and the Community Center. Current and past facility users were invited to attend and give their input and feedback. Staff gave a presentation at each of the meetings and included research and comparisons regarding policies and fees from around the state of Oregon. Based on feedback from the public, research from staff and input from Commissioners, staff recommends the following: 1. Based on the last 6 years of amplified events at the bandshell the recommendation . is for no more than three amplified events per week in the bandshell. 2. Change the attached policy on priority usage of lighted fields at North Mountain Park to include baseball and softball. 3. Make a recommendation to the City Council on the proposed fee increases that will recover 31% of the costs associated with operating and maintaining all indoor facilities. Home of Famous Lithia Park 4. Recommend to the Ashland City Council that all users of facilities that have historically used the facilities for free, continue to be able to do so. 5. Recommend to the Ashland City Council that the Ashland Folk Dancers continue to receive the long term user rate and that Ashland Parks and Recreation Department staff have the ability to move the folk dancers to another facility at their discretion based on other reservations at the Community Center. 6. Recommend implementation of the new fee schedule to begin on July 1, 2007. 7. Complete an annual review of all facility fees and adjust rates. rorn� iar ivio arinn ••.-•. ....... .. . .. . . Regular Meeting Ashland City Council 11/U3%kii Y. Qii:�l.. COMMUNICATIONS, PETITIONS & REMONSTRANCES: Community Center A letter from Planning Director John Fregonese was read concerning the history and use of the Community Center in recent years, and a request to continue with the present policy of occasionally booking the Center to groups other than the Folkdancers on Friday nights. On a question from Arnold, Fregonese said the contract calls for 30 days notice to terminate. Reid feels the Folkdancers serve a need in the community. Elerath said they have been using the Center for 15 years and it wasn't fair to bump them. He can ,see the need for them to have a regular meeting place and if they are not paying their fair share, they should be asked to pay more. Arthur Clemons, 175 California St. , spoke for the Folkdancers explaining that the same people don't dance every time, therefore it' s hard to measure the number of people they serve. Their dances have various levels of difficulty but the steps are learned very easily and all age groups get involved. They have tried to get a formal policy. on the use of the center, and don't object to being bumped once in a while but want to be assured it won' t happen too often. On a question from Arnold concerning problems with dancing other places, Clemons said the Legion Hall' s floor is too hard, and the lighting is poor. Laws asked if the group would be open to being bumped six times a year if it was not more than twice in any three-month period, and Clemons said yes. Bill Ashworth, 201 Granite St. , said the real issue is whether the building is a Community ,Center or a Performing Arts Center. He noted there were 36 people from their group in the audience, and felt a Community Center Board should be appointed to run the Center. Mirriam Marrs, 150 Sixth St. , said it would be appro- priate for some groups to use Hunter Park and she would be willing to serve on a Community Center Board. Dan Hamnet of Talent talked of the difficulty of moving their equipment which is stored there and said the acoustics in the Center aren't the best for musical performances. He asked if City had been soliciting groups specifically for Friday nights and Fregonese said no, they market the Center for use at all times . -- 11/03/87 P. 2 Oyu uy .�uivaau �y �yy COMMUNICATIONS, PETITIONS & REMONSTRANCES: (Continued) Community Center Michaele Sallade' , 8 Beach Street, felt City was soliciting to .rent Center .to other groups to get more revenue, but understood the Children' s Group had been offered free use. She also read a letter from the Heather & Rose Scottish & English Dancers in support of the Folkdancers. Councilor Laws suggested a policy be adopted whereby the grandfather groups using the center be bumped no more than six times a year, including once for the annual maintenance of' the building, and not more than. twice in a three-month period. These groups will only , ,, ,. be bumped by groups meeting the following conditions: 1) they give six weeks notice; 2) they are open to the public; 3) their activity is of general interest to the public; and 4) they have an expected attendance of . 50 or more. Laws made the foregoing a motion which was seconded by Elerath. The motion passed unanimously on voice vote. Current Drought Director of Public Works Alsing said there has been a little rain lately and we're in good shape. He suggested waiting a couple weeks before taking conser- vation measures. No action necessary. "B" St. Property City Administrator Almquist said the seller had Purchase accepted the City' s offer of $16,000 and it was now necessary for Council to authorize the Mayor and City Recorder to. sign the agreement. Reid so moved, Elerath seconded the motion which passed unanimously on voice vote. UNFINISHED BUSINESS: Liquor License/ it was decided to hold the discussion of the liquor 'Property Taxes' license/property tax payment issue prior to talking . about the Mark Antony liquor license: Councilor Arnold said its good for business to have taxes paid And we should stay with original policy. Laws fell lessees should not be penalized when they have no , control over payment of taxes on a leased building. Williams wanted to be flexible and give owners a time frame'to pay taxes current, review the tax rolls each year and if not paid, revoke liquor license recommen- dation. Acklin was not opposed to being flexible. Mayor Medaris noted that alcohol causes the majority of problems for our Police Dept. , which is funded partially by property taxes.. 11/03/87 P. 3 Facility & Park Rental Fee and Policy Recommendations Facility or Park Current Recommendation Location Lithia Park- Residents: $200 $450 for park use or Wedding Rentals Non Residents: $250 $750 for wedding package (1 full day use) Package=Lithia park wedding site and usage of C.0 or PH (1 full day use) Make Lithia Park reservations as long as 1 year in advance. Allow 2 weddings a day in the park with an occasional exception. Amplified sound is prohibited in all areas of Lithia Park with the exception of the Bandshell. Scheduling of all facilities is at the discretion of Ashland Parks and Recreation staff within parks policies and guidelines. Lithia Park- C. Mem. Area: $50 Keep fees the same. Limit Group Picnic Areas Madrone Area: $40 the rental time to 4 hrs Top Southern Lawn: $35 instead of all day to Hillside Picnic Area: $35 accommodate more (for 1 full day use) reservations. Lithia Park- Must be 21 years of age to Butler Bandshell Butler Bandshell: $50 rent any facility, ballfield or park area. Signed contract with all outlined policies on bandshell contract $150 and limit rental time to 8 hrs. No more than three amplified bandshell rentals per week. Lithia Park- Weddings: $25 Weddings: $25 Refundable Security Picnic Areas: $25 Bandshell: $150 Deposits Bandshell: $25 Picnic Areas: $50 Pioneer Hall All Day Rental: $220 Eliminate All Day Rental Rental Rates Weekday Rental: $I 1.50/hr Fee Weekend Rental: $18.50/hr Weekday Rental: $13.00/hr Weekend Rental: $21.00/hr Community Center All Day Rental: $220 Eliminate All Day Rental Rental Rates Weekday Rental: $11.50/hr Fee Weekend Rental: $18.50/hr Weekday Rental: $13.00/hr Small Meeting Rm: $6.50/hr Weekend Rental: $21.00/hr Small Meeting Rm: $10/hr Comm Ctr/Pioneer Must be 21 years of age to Hall/The Grove- Security Deposit: $100 rent any facility, ballfield Deposits Cleaning Deposit: $100 or park area. Alcohol Deposit: $150 Eliminate cleaning deposit Security Deposit: $150 Alcohol Fee: $100 (non-refundable) The Grove- All Day: $350 Eliminate All day Rental Full Facility Hourly/wkdy: $25.50 Fee Rental Rates Hourly/wknd: $30 Hourly/wkdy: $27 Hourly/wknd: $32 The Grove- All Day: $200 Discontinue gym rentals. Gym Hourly/wkdy: $18.50 Must rent full facility to Rental Rates Hourly/wknd: $20.50 utilize gym. The Grove- All Day: $175 Eliminate All Day Rental Otte/Peterson Conference Hourly/wkdy: $12.50 Fee Room Hourly/wknd: $14.50 Hourly/wkdy: $14.00 Rental Rates Hourly/wknd: $16.00 Hunter Park Senior Non Profit: $10.00 per hour Non Profit: $12.00 per hour Center For Profit: $12.00 per hour For Profit: $14.00 per hour Allow for rentals of the carpeted room. L Field Usage Tournaments: $15 per Tournaments: $20 per team/per day team/per day Lights: $25 per day Lights: $25 per day or $10 per hour. Field Usage None 1. Must be 21 years of age to rent any facility,sports field or park area. 2. Fill out field usage application. 3. Attend mandatory field meeting one time per year. 4. Continue to encourage coaches training. 5. Require certificate of insurance for field usage. 6. League schedule must be submitted to facility manager at least 3 weeks before season begins. Other Recommendations: • Increase longterm user fee from $9.00 per hour to $10.00 per hour. Along term user is defined as anyone using an indoor facility (The Grove, Pioneer Hall and the Community Center) at least 6 times per year. • Non park vehicle access is prohibited without a permit on all pathways. ASHLAND PARKS AND RECREATION COMMISSION 340 SO.PIONEER STREET - ASHLAND,OREGON 97520 COMMISSIONERS: """'N •' p Dori Robertson Diane Amarotico tiQ Director JoAnne Eggers Michael Gardiner TEL.:(541)488-5340 Jim Lewis FAX:(541)488-5314 Rich Rosenthal MEMORANDUM TO Ashland Parks and Recreation Commission FROM Rachel Teige, Recreation Superintendent DATE January 17, 2007 SUBJECT Facility Fee and Policy Study Recommendations Action Requested Recommend approval. Background In November and December of 2006 and January of 2007,the Parks and Recreation Commission held three study sessions to discuss all rentable indoor and outdoor facilities managed by the Ashland Parks and Recreation Department. Discussed at the meetings were sports fields, Lithia Park and indoor facilities including The Grove, Pioneer Hall and the Community Center. Current and pas t facility users were invited to attend and give their input and feedback. Staff gave a presentation at each of the meetings and included research and comparisons regarding policies and fees from around the state of Oregon. Based on feedback from the public,research from staff and input from Commissioners, staff recommends the following: 1. Based on the last 6 years of amplified events at the bandshell the recommendation is for no more than three amplified events per week in the bandshell. 2. Change the attached policy on priority usage of lighted fields at North Mountain Park to include baseball and softball. 3. Make a recommendation to the City Council on the proposed fee increases that will recover 31% of the costs associated with operating and maintaining all indoor facilities. Home of Famous Lithia Park 4. Recommend to the Ashland City Council that all users of facilities that have historically used the facilities for free, continue to be able to do so. 5. Recommend to the Ashland City Council that the Ashland Folk Dancers continue to receive the long term user rate and that Ashland Parks and Recreation Department staff have the ability to move the folk dancers to another facility at their discretion based on other reservations at the Community Center. 6. Recommend implementation of the new fee schedule to begin on July 1, 2007. 7. Complete an annual review of all facility fees and adjust rates. CITY OF Council Communication -ASH LAN D Approval of City Charter Ballot Measure Meeting Date: February 6, 2007 Primary Staff Contact: Ann Seltzer Departmnt dministration ann @ashland.or.us Contribents: Legal Secondary Staff Contact: Mike Franell Approv franellm @ashland.or.us Estima Statement: At the council meeting on January 16, 2007 council reviewed the draft ballot measure language for the revised city charter and city manager and requested changes including the real estate transfer tax provision approved by voters in November 2006. Staff Recommendation: Review the ballot measure language and direct staff to prepare final ballot measure language and send to the City Recorder for noticing by March 8 and to the Jackson County elections office by March 15. Background: A review of the city charter was a 2004-2005 council goal. A charter review committee was appointed during the summer of 2004 and presented its final report to the Council on July 19, 2005. At the council meeting on December 1, 2005 the Council agreed to move forward with a revised city charter based on the Oregon Model Charter and to incorporate recommendations of the charter review committee with the exception of the recommendations#1, #2 and #4. Council agreed that recommendation #1, shifting from a city administrator to a city manager working in partnership with the Mayor, would be drafted and presented to voters as a separate ballot measure. In addition, Council expressed interest in the committee's recommendation to study the issues of the city recorder and municipal judge as well as councilor salaries. The City Council held a special meeting on February 16, 2006 and a study session July 13, 2006 to discuss the charter. At the October 3, 2006 council meeting, the council adopted a schedule for placing the two charter measures on the May 2007 ballot and to release the draft for public comment. Council Options: • Direct staff to prepare final ballot measure language and send to the City Recorder for noticing by March 8 and to the Jackson County elections office by March 15. • Identify changes and direct staff to make revisions for council review on February 20. Attachments: • Draft ballot measures Revised City Charter and City Manager • Draft Revised City Charter • Draft City Manager Amendment • Existing City Charter 1 Ballot Measure Language Revised City Charter Caption: Adopts Revised Ashland Charter Question: Shall Ashland adopt charter revising language and removing sections that have been superseded by state law? Statement: The proposed charter would revise the language by adopting the framework of the model charter developed by the League of Oregon cities. It would eliminate specific dollar amounts, such as the City Recorder and Municipal judge salaries. It would eliminate tax levy references within the charter, such as levy authority for the Parks Department and the City Band, that have become obsolete due to voter initiated changes in Article XI, Section 11 of the Oregon Constitution. The proposed charter would also update charter provisions to be consistent with changes in the Oregon Constitution, Oregon laws or Oregon court decisions. Specifically, the proposed charter: removes provisions defining the boundaries of the City; removes provisions governing election procedures; removes provisions relating to property tax levy procedures; and, removes provisions relating to bidding public projects,as these provisions are all governed by current state statutes. In addition, the proposed charter removes various other provisions that are governed under state statutes. Maximum number of words allowed is 500 for each explanatory statement Explanatory Statement: This measure replaces the existing Ashland City Charter. This revised city charter is based on the Oregon Model Charter and includes language from the existing charter that reflects the specific history and character that defines the Ashland community. In 2004 the Mayor and council established the Charter Review Committee. The committee was directed to conduct an independent assessment of the existing charter, last reviewed in 1978, and, if necessary to draft a new or amended document suitable to "serve the community ell into the future". Committee members included co-chairs, John Enders and Carole Wheeldon, and members Hal Cloer, Kate Culbertson, Laurie MacGraw, Pam Marsh, Don Montgomery, Keith Massie,and Michael Riedeman. The committee met more than twice a month over 12 month period. Each meeting was advertised and open to the public. In addition,numerous articles appeared in the local papers and the committee held community forums to glean public input about the charter. They made their final recommendation to the city council in July of 2006. The committee agreed that the task would require more than a cursory review and agreed to undertake a systematic and comprehensive analysis of the charter. After extensive discussion, the committee decided to adopt the Oregon Model Charter, developed by the League of Oregon Cities, as a template for the revised Ashland City Charter. The intent was to produce a document that clearly identifies the authority and accountability of local government and that reflects current state law. At the same time the revised charter should continue to reflect items unique to Ashland. The committee agreed to eliminate all language provisions that have been superseded by state law and to eliminate all reference to finances believing that expenditures of public dollars belong in the annual budget process rather than in the city charter. 1 The committee then focused on key issues critical to the conduct of local government and made ten specific recommendations to the City Council including three which deviated from the current charter: a change in the form of government from a mayor/council to a council/manager, giving the Mayor a vote, and changing the method of electing councilors. The council felt these three . recommendations, should not be in the revised charter,but felt the form of government question should be posed separately to the voters. All items related to the conduct of local government which exist in the current city charter and are unique to Ashland are included in the revised city charter including the current form of government, the Mayor does not have a vote, council elections are by position, an elected city recorder and municipal judge, an elected Parks and Recreation Commission and the existence of an Ashland City Band. The revised city charter differs from the existing city charter in three ways: the elimination of all reference to financing, the requirement to review the charter every ten years, the elimination of language superseded by state law. (Excerpt from the Final Report and Recommendations of the Charter Review Committee) TOTAL word count: 485 Ballot Measure Language City Manager Caption: Changes form of government to a Council/Manager form. Question: Should the Ashland Charter be amended to change from Mayor as chief executive officer to Council/Manager form of government? Statement: This provision will be effective if it is approved by the voters irrespective of whether the proposed revised charter is adopted. Language is included amending either the existing charter or the proposed revised charter. The current structure of government in Ashland provides the Mayor is the chief executive officer of the City. The Mayor is supported in that role by a City Administrator. The Mayor's powers include appointment, supervision and removal of City department heads and presentation of the annual proposed budget. If this amendment is approved,the City Administrator position would become the City Manager position and would assume the responsibilities of hiring, supervising and removal of City department heads and preparation and presentation of the proposed annual budget. The Mayor would continue to serve as the political head of the City. The City Manager would become the chief executive officer. The City Council would continue to serve as policy makers. The City Manager would be charged with carrying out the policies established by the City Council. Explanatory Statement: This measure changes the current form of government from mayor/council to council/manager. Passage of this measure retains the Mayor as the political leader of the City and gives chief executive authority to the City Manager. Understanding and analyzing the appropriate roles and responsibilities that should be assumed by elected and appointive officials consumed months of the Charter Review Committee's efforts and generated significant interest from elected and appointed officials (current and retired)and from members of the public. In the end, the committee voted unanimously to recommend a change in the current Ashland form of government from a mayor/council to council/manager. The City 2 Council decided such a substantive change should be decided by the voters as a as a ballot measure separate from the city charter ballot. In the current city charter the Mayor is the chief executive officer of the organization— essentially the administrative head of the city as well as the political head of the city. The City Administrator provides administrative support to the Mayor. Under the current form of government the City Administrator acts as the head of the organization but has no authority over the hiring and firing of employees, specifically senior level department heads. A change in the form of government provides for a professional manager to oversee the administration of the city and to implement the policies established by the council. The form of government draws clear lines between the policy makers and the administration and gives full administrative authority to the City Manager. The Charter Review Committee final report is available at City Hall and at www.ash]and.or.us. (Excerpt from the Final Report and Recommendations of the Charter Review Committee) •*s�.s+**ra*�:.+...>.:s*++•*.***>s�+s�*•ss*ra*+#+s+.:.s.s*.++:.+ra*+..t* Oregon Revised Statute (ORS) 250.035 sets forth the required components for Ballot Measure Titles. The statute provides in relevant part: 250.035 Form of ballot titles for state and local measures. (1)The ballot title of any measure, other than a state measure, to be initiated or referred shall consist of: (a) A caption of not more than 10 words which reasonably identifies the subject of the measure; (b)A question of not more than 20 words which plainly phrases the chief purpose of the measure so that an affirmative response to the question corresponds to an affirmative vote on the measure; and (c) A concise and impartial statement of not more than 175 words summarizing the measure and its major effect. 3 DRAFT REVISED ASHLAND CHARTER January 17, 2007 CITY OF ASHLAND CITY CHARTER PREAMBLE We, the voters of Ashland, Oregon exercise our power to the fullest extent possible under the Oregon Constitution and laws of the state, and enact this Home Rule Charter. Chapter I NAMES AND BOUNDARIES z Section 1. Title. This charter may be referred to as the 2007 Ashland City Charter, Section 2. Name. The City of Ashland, Oregon, continues as a municipal corporation with the name City of Ashland. Section 3. Boundaries. The city includes all territory within its boundaries as they now exist or are legally modified. The city will maintain as a public record an accurate and current description of the boundaries. Chapter 11 POWERS Section 4. Powers. The city has all powers that the constitutions, statutes and common law of the United States and Oregon expressly or impliedly grant or allow the city, as fully as though this charter specifically enumerated each of those powers. Section 5. Construction. The charter will be liberally construed so that the city may exercise fully all powers possible under this charter and under United States and Oregon law. Section 6. Distribution. The Oregon Constitution reserves initiative and referendum powers as to all municipal legislation to city voters. This charter vests all other city powers in the council except as the charter otherwise provides. The council has legislative, administrative and quasi-judicial authority. The council exercises legislative authority by ordinance, administrative authority by resolution, and quasi-judicial authority by order. The council may not delegate its authority to adopt ordinances. DRAFT NEW CITY CHARTER 0 FILENAME\p H:\RecenAAdmin\Council\2007\2 06 07 Draft Revised City Charter 1-17-07-final.docoPage- 1 Chapter III COUNCIL Section 7. Council. The council consists of six councilors nominated and elected from the city at large by position. Section 8. Mayor. (a) The mayor presides over and facilitates council meetings,,preserves order, enforces council rules, and determines the order of business under council rules. (b) The mayor has no vote on council matters unless there is a tie vote. The mayor has veto authority over council legislative and administrative decisions. (c) With the consent of council, the mayor appoints members of commissions and committees established by ordinance or resolution. (d) The mayor must sign all records of council decisions. (e) The mayor serves as the political head and chief executive officer of the city government. (f) The mayor must: (1) Appoint, supervise and remove city department heads with the consent of the councilors; . (2)Deliver an annual state of the city report to the council and public; (3) Encourage and support regional and intergovernmental cooperation; (4) Promote cooperation among the council, staff and citizens; and (5)Perform other duties as assigned by the council. Section 9. Council President. At its first meeting each year, the council must elect a president from its membership. The president presides in the absence of the mayor and acts as mayor when the mayor is unable to perform duties. Section 10. Rules. The council must adopt by ordinance or resolution rules to govern its meetings. Section 11. Meetings. The council must meet at least once a month at a time and place designated by its rules, and may meet at other times in accordance with the rules. Section 12. Quorum. The mayor and three councilors or four councilors is a quorum to conduct business, but a smaller number may meet and compel attendance of absent members as prescribed by council rules. Section 13. Vote Required. The express approval of a majority of a quorum of the council is necessary for any council decision, except when this charter requires approval by greater number. A majority shall in all cases consist of a minimum of three votes. Section 14. Record. A record of council meetings must be kept in a manner prescribed by the council rules. DRAFT NEW CITY CHARTER ❑ FILENAME\p H:\Recent\Admin\Council\2007\2 06 07 Draft Revised City Charter 1-17-07-final.docDPage- 2 Chapter IV LEGISLATIVE AUTHORITY Section 15. Ordinances. The council will exercise its legislative authority by adopting ordinances. The enacting clause for all ordinances must state "The City of Ashland ordains as follows:" Section 16. Ordinance Adoption. (a) Except as authorized by subsection (b), adoption of an ordinance requires approval by a majority of a quorum at two meetings. (b) The council may adopt an ordinance at a single meeting by the unanimous approval of the councilors present, provided the proposed ordinance is available in writing to the public at least one week before the meeting. (c) Any substantive amendment to a proposed ordinance must be read aloud in the Council meeting or made available in writing to the public before the council adopts the ordinance at that meeting. (d) After the adoption of an ordinance, the vote of each member must be entered into the council minutes. (e) After adoption of an ordinance, the recorder of records must endorse it with the date of adoption and the recorder's name and title. The recorder must submit the ordinance to the mayor for approval. If the mayor approves the ordinance, the mayor must sign and date it. (f) If the mayor vetoes the ordinance, the mayor must return it to the recorder with written reasons for his veto within five business days of passage of the ordinance. If the ordinance is not so returned, it takes effect as if approved. (g) At the first council meeting after veto by the mayor, the councilors will consider the reasons of the mayor and again vote on the ordinance. If four councilors vote to adopt the ordinance, it will take effect. Section 17. Effective Date of Ordinances. Ordinances normally take effect on the 30`h day after adoption and approval by the mayor, or adoption after veto by the mayor, or on a later day provided in the ordinance. An ordinance adopted may take effect as soon as adopted, or other date less than 30 days after adoption if it contains an emergency clause. Chapter V COUNCIL ADMINISTRATIVE AUTHORITY Section 18. Resolutions. The council will normally exercise its administrative authority by approving resolutions. The approving clause for resolutions must state "The City of Ashland resolves as follows:" Section 19. Resolution Approval. (a) Adoption of a resolution or any other council administrative decision requires approval by the council at one meeting. (b) Any substantive amendment to a resolution must be read aloud in the Council meeting or made available in writing to the public before the council adopts the resolution at that meeting. DRAFT NEW CITY CHARTER ❑ FILENAME\p H:\Recent\Admin\Council\2007\2 06 07 Draft Revised City Charter 1-17-07-final.docoPage- 3 (c) After approval of a resolution or other administrative decision, the vote of each member must be entered into the council minutes. (d) After approval of a resolution, the recorder must endorse it with the date of approval and the recorder's name and title. The recorder must submit the resolution to the mayor for approval. If the mayor approves the resolution, the mayor must sign and date it. (e) If the mayor vetoes the resolution, the mayor must return it to the recorder with written reasons for the veto within five business days of passage of the resolution. If the resolution is not returned, it takes effect as if approved. (f) At the first council meeting after veto by the mayor, the councilors will consider the reasons of the mayor and again vote on the resolution. if four councilors vote to adopt the resolution, it will take effect. Section 20. Effective Date of Resolutions. Resolutions and other administrative decisions take effect on the date signed by the mayor, or on a later day provided in the resolution. Chapter VI QUASI-JUDICIAL AUTHORITY Section 21. Orders. The council will normally exercise its quasi-judicial authority by approving orders. The approving clause for orders may state "The City of Ashland orders as follows:" Section 22. Order Approval. (a) Approval of an order or any other council quasi-judicial decision requires approval by the council at one meeting. (b) Any substantive amendment to an order must be read aloud or made available in writing to the public at the meeting before the council adopts the order. (c) After approval of an order or other council quasi-judicial decision, the vote of each member must be entered in the council minutes. (d) After approval of an order, the recorder must endorse it with the date of approval and the recorder's name and title. Section 23. Effective Date of Orders. Orders and other quasi-judicial decisions take effect on the date of final approval, or on a later day provided in the order or by ordinance. Chapter VII ELECTIONS Section 24. Councilors. At each general election after the adoption of this charter, three councilors will be elected for four-year terms by position. The terms of councilors in office when this charter is adopted are the terms for which they were elected. Section 25. Mayor. At the general election held November 2008, and every other general election thereafter, a mayor will be elected for a four-year term. The term of the mayor in office when this charter is adopted is the term for which the mayor was elected. DRAFT NEW CITY CHARTER D FILENAME\p H:\Recent\Admin\Council\200A2 06 07 Draft Revised City Charter 1-17-07-final.docoPage-4 Section 26. State Law. City elections must conform to state law except as this charter or ordinances provide otherwise. All elections for city offices must be nonpartisan. Section 27. Qualifications. (a) To hold a city elective position, each person must be a qualified elector under state law, and reside within the city before election or appointment to office. The Municipal Judge shall not be required to be a resident of the City of Ashland. (b) No person may be a candidate at a single election for more than one city office. (c) Neither the mayor nor a councilor may be employed by the city. ' (d) The council is the final judge of the election and qualifications of its members. Section 28. Nominations. (a) An eligible elector may become a candidate for an elective city position by filing a nomination petition or a declaration of candidacy on a form prescribed by the secretary of state and available front the city recorder. (b) A declaration of candidacy must be accompanied by the filing fee, if any, established by council resolution. (c) A nomination petition must contain signatures of not fewer than 25 city-qualified electors. (d) The council may prescribe by ordinance other procedures for the nomination and election of persons for city elective positions. Section 29. Terms. The term of an officer elected at a general election begins when the officer is sworn in after the first of the next year immediately after the election, and continues until the successor qualifies and assumes the office. Section 30. Oath. To hold a city elective position each person must swear or affirm to faithfully perform the duties of the office and support the constitutions and laws of the United States and Oregon. Section 31. Vacancies: A city elective position becomes vacant: (a) Upon the incumbent's: (1) Death, (2) Adjudicated incompetence, or (3) Recall from the office. (b)Upon declaration by the council after the incumbent's: (1) Failure to qualify for the office within 10 days of the time the term of office is to begin, (2) Absence from the city for 30 days without council consent, which consent shall not be unreasonably withheld, or from all council meetings within a 60-day period without council consent, which consent shall not be unreasonably withheld. (3) Ceasing to reside in the city, (4) Ceasing to be a qualified elector under state law, DRAFT NEW CITY CHARTER 0 FILENAME\p H:\Recent\Admin\Council\2007\2 06 07 Draft Revised City Charter 1-17-07-final.docoPage-5 (5) Disorderly conduct or refusal to perform duties of office. No incumbent may be expelled without notice, a hearing, and a decision by at least four councilors, or (6) Resignation from the office. Section 32. Filling Vacancies. A vacant city elective position will be filled by appointment by a majority of the remaining councilors. The appointee's term of office shall begin immediately upon appointment and shall continue until a successor, elected at the next biennial election, takes office for the unexpired term. If a a councilor will be absent from office for more than 60 days with Council consent, the council may appoint a councilor pro tem. Chapter VIII OTHER ELECTIVE OFFICERS Section 33. City Recorder. (a) The office of city recorder is established as the council clerk, city custodian of records and city elections official. The recorder must attend all council meetings unless excused by the mayor or council. The recorder must make payments of all city funds appropriated by the council, and may audit city accounting records. (b) At the general election November 2010 and every other general election after that, a recorder will be elected for a four-year term. The term of the recorder in office when this charter is adopted is the term for which the recorder was elected. (c) When the recorder is temporarily disabled from acting as recorder or when the office becomes vacant, the council must appoint a recorder pro tem. The recorder pro tem has the authority and duties of recorder. Section 34: Municipal Court and Judge. (a) The office of municipal judge is established. The municipal judge will hold court in the city at such place as the council directs. The court will be known as the Municipal Court. The municipal judge must be admitted to practice in the Supreme Court of Oregon. (b) At the general election in November 2010 and every other general election after that, a municipal judge will be elected for a four-year term. The term of the municipal judge in office when this charter is adopted is the term for which the judge was elected. (c) All proceedings of this court will conform to state laws governing justices of the peace and justice courts. Zt*All areas within the city and areas outside the city as permitted by state law are within the territorial jurisdiction of the court. (NThe municipal court has jurisdiction over every offense created by city ordinance. The court may enforce forfeitures and other penalties created by such ordinances. The court also has jurisdiction under state law unless limited by city ordinance. The municipal judge may: ` (1) Render judgments and impose sanctions on persons and property; (2) Order the arrest of anyone accused of an offense against the city; (3) Commit to jail or admit to bail anyone accused of a city offense; (4) Issue and compel obedience to subpoenas; DRAFT NEW CITY CHARTER 0 FILENAME\p H:\Recent\Admin\Counci1\2007\2 06 07 Draft Revised City Charter 1-17-07-final.docoPage-6 (5) Compel witnesses to appear and testify and jurors to serve for trials; (6) Penalize contempt of court; (7) Issue processes necessary to enforce judgments and orders of the court; (8) Issue search warrants; and (9)Perform other judicial and quasi-judicial functions assigned by ordinance. Any defendant requesting jury trial may have a jury of six (6) members by demanding the same. Any jury chosen shall be governed by the laws of the State of Oregon relating to juries in the Curt, and shall have the qualifications of such jurors resident within the corporat Aimtts of said City. N The council may appoint and may remove municipal judges pro tem. NNI The council may transfer some or all of the functions of the municipal court to an appropriate state court. Chapter IX APPOINTIVE OFFICERS Section 35. City Administrator. The office of city administrator is established as the chief administrative officer for the city government under the mayor. The mayor with the consent of the city council must appoint and may remove the city administrator. The duties of city administrator shall be established by ordinance. Section 36. City Attorney. The office of city attorney is established as the chief legal officer of the city government. The mayor with the consent of the city council must appoint and may remove the attorney. The attorney must appoint and supervise, and may remove any legal office employees. Chapter X PERSONNEL Section 37. Compensation. The council must authorize the compensation of city officers and employees, the City Recorder and.the Municipal Judge as part of its approval of the annual city budget. The council may authorize by ordinance compensation for the mayor and councilors. Any such ordinance may not take effect before January 1 of the year after a council election. Section 38. Merit Systems. The council by resolution will determine the rules governing recruitment, selection, promotion, transfer, demotion, suspension, layoff, and dismissal of city employees based on merit and fitness. , Chapter XI PUBLIC IMPROVEMENTS Section 39 Procedure. The council may provide by ordinance for procedures governing the making, altering, vacating, or abandoning of a public improvement. A proposed DRAFT NEW CITY CHARTER 0 FILENAME\p H:\Recent\Hdmin\Council\2007\2 06 07 Draft Revised City Charter 1-17-07-final.docClPage- 7 public improvement may be suspended for six months upon remonstrance by owners of the real property to be specially assessed for the improvement. The number of owners necessary to suspend the action will be determined by ordinance. Section 40. Special Assessments. The procedure for levying, collecting and enforcing special assessments for public improvements or other services charged against real property will be governed by ordinance. Chapter XII MISCELLANEOUS PROVISIONS Section 43. Protection of City Water. Any and all water and water works and water rights now owned or which may hereafter be acquired by said City, for the purpose of supplying the residents thereof with water shall never be rented, sold or otherwise disposed of, nor shall the City ever grant any franchise to any person or corporation for the purpose of supplying the residents of said City with water. Section 44. Separate Fire and Police Departments. The City of Ashland shall maintain a fire department which is separate and distinct from the City police department. The employees of one department shall not be assigned to do the job functions of employees in the other department. (Charter amendment 1-4-86). Section 45. Property Transfer Tax. The Council may impose a property transfer tax or fee on property being sold or transferred within the City only after receiving approval from the voters of Ashland. Section 46. Hospital The council has authority to own, operate and conduct a municipal hospital. Section 47. Cemeteries The council has authority to finance the maintenance and upkeep of public and private cemeteries within the city. Section 48. Park & Recreation Commission (a) A park & recreation commission is created with five members nominated and elected from the city at large by position. At the first general election after the adoption of this charter and every four years thereafter, three commissioners will be elected for four-year terms by position. At the second general election after adoption of this charter and every four years thereafter, two commissioners will be elected for four-year terms by position. The terms of commissioners in office when this charter is adopted are the terms for which they were elected. (b) The park & recreation commission has authority over the management of all city lands dedicated for park purposes and all other lands acquired by the city for such purposes. The commission has control and management of all park funds budgeted by the City and must expend them judiciously for beautifying and improving City parks and for funding the City Band. The park & recreation commission will carry out its functions and duties in accordance with city ordinances. DRAFT NEW CITY CHARTER ❑ FILENAME\p H:\Recent\Admin\Council\2007\2 06 07 Draft Revised City Charter 1-17-07-fnal.docoPage- 8 (c) The commission administers the city open space park program. The commission makes recommendations to the city council concerning land and easement acquisitions for the program. After such acquisition, the commission will administer, develop and operate such land. The city council may not use condemnation power to acquire fee simple ownership of any land for open space purposes. Funds dedicated to the open space program may only be used for open space purposes as determined jointly by the commission and the city council. Section 49. Airport The council has authority to acquire, own, conduct and operate a municipal airport either within or outside city boundaries. Section 50. City Band The City shall provide for the continued operation of a City Band. Section 51. Ethics The council shall by ordinance establish provisions relating to the standards for ethical conduct of the City's elected officials, appointed officials and employees. Section 52. Charter Review At least every 10 years beginning in 2015 the council will appoint a charter review committee of not less than nine members. The committee will review the city charter and any issues relating thereto. It will report to the council and the public its findings, conclusions and recommendations, including any proposed amendments to the city charter. Section 53. Debt. City indebtedness may not exceed debt limits imposed by state law. A charter amendment is not required to authorize city indebtedness. Section 54. Ordinance Continuation. All ordinances consistent with this charter in force when it takes effect remain in effect until amended or repealed. Section 55. Repeal. All charter provisions adopted before this charter takes effect are repealed. Section 56. Severability. The terms of this charter are severable. If any provision is held invalid by a court, the invalidity does not affect any other part of the charter. Section 57. Time of Effect. This charter takes effect July 1, 2007. DRAFT NEW CITY CHARTER 0 FILENAME\p H:\Recent\Admin\Council\2007\2 06 07 Draft Revised City Charter 1-17-07-final.docOPage- 9 CITY OF ASHLAND CITY CHARTER CITY MANAGER AMENDMENT The 2006 Ashland City Charter is amended by changing sections 8 and 31, and adding a new section 35 to read as follows: Section 8. Mayor. (a) The mayor presides over and facilitates council meetings, preserves order, enforces council rules, and determines the order of business under council rules. (b) The mayor has no vote on council matters unless there is a tie vote. The mayor has veto authority over council legislative and administrative decisions. (c) With the consent of council, the mayor appoints members of commissions and committees established by ordinance or resolution. (d) The mayor must sign all records of council decisions. (e) The mayor serves as the political head [and chief executive officer] of the city government. i [(n The mayor must: (I) Appoint, supervise and remove city department heads with the consent of the councilors; (2) Deliver an annual state of the city report to the council and public; (3) Present a proposed annual city budget to the city budget committee and council; (4) Encourage and support regional and intergovernmental cooperation; (S) Promote cooperation among the council, staff and citizens; and (6) Perform other duties as assigned by the council.] Section 31. Vacancies: A city elective position becomes vacant: (a) Upon the incumbent's: (1) Death, (2) Adjudicated incompetence, or (3) Recall from the office. (b) Upon declaration by the council after the incumbent's: (1) Failure to qualify for the office within 10 days of the time the term of office is to begin, (2) Absence from the city for 30 days without council consent, which consent shall not be unreasonably withheld, or from all council meetings within a 60-day period, without council consent, which consent shall not be unreasonably withheld (3) Ceasing to reside in the city, (4) Ceasing to be a qualified elector under state law, (5) Disorderly conduct or inattention to duties of office. No incumbent may be expelled without notice, a heating and a decision by at least four councilors, (6) Resignation from the office, or (7) Removal under Section 35(i). Section 35. City Manager. (a) The office of city manager is established as the chief administrative officer of the city government. The city manager is responsible to the mayor and council for the proper administration of all city business. The city manager will assist the mayor and council in the development of city policies, and carry out policies established by ordinances and resolutions. (b) A majority of the council must appoint and may remove the manager. The appointment must be made without regard to political considerations and solely based on education and experience with local government management. (c) The manager may be appointed for a definite or an indefinite term, and may be removed at any time by a majority of the council. The council must fill the office by appointment as soon as practicable after the vacancy occurs. (d) The manager must: (1) Attend all council meetings unless excused by the mayor or council; (2) Make reports and recommendations to the mayor and council about the needs of the city; (3) Administer and enforce all city ordinances, resolutions, franchises, leases, contracts, permits, and other city decisions; (4) Appoint, supervise and remove city employees; (5) Organize city departments and administrative structure; (6) Prepare and administer the annual city budget; (7) Administer city utilities and property; (8) Encourage and support regional and intergovernmental cooperation; (9) Promote cooperation among the council, staff and citizens in developing city policies, and building a sense of community; (10) Perform other duties as directed by the council; (11) Delegate duties, but remain responsible for acts of all subordinates. (f) The manager has no authority over the mayor or council or over the judicial functions of the municipal judge. (g) The manager and other employees designated by the council may sit at council meetings but have no vote. The manager may take part in all council discussions. (h) When the manager is temporarily disabled from acting as manager or when the office becomes vacant, the council must appoint a manager pro tem. The manager pro tem has the authority and duties of manager, except that a pro tem manager may appoint or remove employees only with council approval. (i) Neither the mayor nor a councilor may attempt directly or indirectly to coerce the manager or a candidate for the office of manager in the appointment or removal of any city employee, or in administrative decisions. Violation of this prohibition is grounds for removal from office by four councilors after a public hearing. In council meetings, the mayor and councilors may discuss or suggest any topic with the manager relating to city business. t ASHLAND CITY CHARTER. INTRODUCTION 00 History of the Ashland Charter The original Charter granted to the City of Ashland in 1874 was later supplanted by a Charter given to the City by the Oregon State Legislature in 1889. In 1898, a new Charter was approved by the voters of the City,which remained in effect until 1970,although amended numerous times over the years. In 1906,a State constitutional amendment giving cities Home Rule meant that Charters could be adopted and amended without action by the State Legislature. A vote of the Ashland citizens to amend the City Charter or to adopt a new one can effect changes in the structure and powers of Ashland city government. For this purpose,the Council may call a special election on the Charter by initiative petition. In May of 1970,as a result of study and recommendation by the Ashland League of Women Voters and the Charter Revision Committee, an amended Ashland City Charter was again approved by the voters of the City. As adopted, it retained all of the desirable provisions of the original Charter, while omitting obsolete provisions,thereby simplifying this important document and making it a more workable one. Five amendments were enacted by the voters in May of 1972, dealing primarily with administrative refinements, and these amendments have been incorporated into the following compilation of the City Charter. Notes: 1) City incorporated 10-13-1874 2) First Ordinance passed I 1-14-1874-Setting Boundaries of the City of Ashland ARTICLE 1 Name and Boundaries Section 1. Title of Enactment This enactment shall be referred to as the Ashland Charter of 1970. Section 2. Name The municipality of Ashland, Jackson County, Oregon, shall continue to be a municipal corporation with the name"City of Ashland". Section 3. Boundaries The City shall include all territory encompassed by its boundaries as they now exist or hereafter are modified by the voters, by the Council, or by any other agency with legal power to modify them. The Recorder shall keep in her/his office at City Hall at least two(2)copies of this Charter, in each of which he/she shall maintain an accurate and up-to-date description of the boundaries. The copies and descriptions shall be available for public inspection at any time during regular office hours of the Recorder. ARTICLE 2 Powers Section 1. Powers of the City The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities,as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. Section 2. Construction of the Charter In this Charter, the mention of a particular power shall not be . construed to be exclusive or to restrict the scope of the powers, which the City would have if the particular power were not mentioned. The Charter shall be liberally construed to the end that the City Page I of 17 ASHLAND CITY CHARTER shall have all powers necessary or convenient for the conduct of its municipal affairs, including all powers that cities may assume pursuant to State laws and to the municipal Home Rule provisions of the State Constitution. Section 3. Provisions for Amendment and Revision The Council shall have the power to call a special election upon a resolution passed by the Council for the purpose of amending the Charter or enacting a new Charter, or whenever petitioned to do so by the electors of said City, under any initiative or referendum ordinance of the City of Ashland,or the laws of the State of Oregon. ARTICLE 3 Elective Officers Section 1. Elective Officers The elective officers of the City shall be:a Mayor,Recorder,six(6)Council Members,five(5)Park Commissioners and a Municipal Judge. (Charter amendment 5-23-78) Section 2. Qualifications All elective officers except the Municipal Judge shall be residents and qualified voters in the City. (Charter amendment 5-23-78). Section 3. Salaries Any change in the amount of the present compensation received by elective officers, except for the Recorder and Municipal Judge,shall be submitted to the vote of the people; however, the salary of the elected Recorder shall be in the amount being paid in 1974 and be adjusted starting with the fiscal year 1974-75 in the same percentage as the average salary adjustments of the other supervisory employees and department heads of the City of Ashland; further, the salary of the Municipal Judge will initially be the same as for the year 1978-79 and thereafter to be adjusted in the same percentage as the average salary adjustment of the other supervisory employees and department heads of the City of Ashland. (Charter amendment 5-23-78). Section 4. Vacancies An office shall be deemed vacant upon the incumbent's death; adjudicated incompetence;conviction of a felony;other offense pertaining to his/her office,or unlawful destruction of public records;resignation; recall from office or ceasing to possess the qualifications for the office;or,in the case of the Mayor or Council Member,upon hisrher absence from the City for thirty(30)days without the consent of the Council or upon his/her absence from meetings of the Council for sixty (60) days without like consent, and subsequent declaration of the vacancy by a two-thirds affirmative vote of the Council. A vacant elective office in the City shall be filled within sixty (60) days by the Council electing some qualified person to fill such vacancy. The appointee's term of office shall begin immediately upon appointment and shall continue until a successor,elected at the next biennial election,takes office for the unexpired term. The Council shall have the power,by a two-thirds affirmative vote,to expel any member of the Council for disorderly conduct in Council„inattention to duties or removal under the provisions of __ Deleted:., Article 13. Section 46 . No Council member shall be expelled without notice and a hearing by the Council. Section 5. Term The term of all elective officers shall begin the first day of January following their election. Section 6. Interest in City Contracts During the term of office, no elective officer shall violate any provision of the State of Oregon Code of Ethics as contained in ORS Chapter 244.(Amended by vote 1 I- 8-94.) Page 2 of 17 ASHLAND CITY CHARTER ARTICLE 4 Mayor Section 1. Term The Mayor in office at the time this Charter is adopted shall continue in office until the end of his/her term of office as fixed by the Charter of the City in effect at the time this Charter is adopted. At the biennial general election held in 1972,and every fourth year thereafter,a Mayor shall be elected for a term of four(4)years. Section 2. Powers and Duties The Mayor cerces as the political head of the ciry 0ovcrnnrent. _ --- Deleted:is the eaeeameoRon of the municipal mrporanon and shall eanalse Section 3. Vote The Mayor shall not be entitled to vote on an ordinance or measure before the Council affansl fthe ity and thegeneral y y aRays of the Gry and ovn appomnn � except in the case of a tie vote, in which case he/she shall have the power to vote, and must vote either in offs rs. Hdshe shall sign ail otdns and the affirmative or in the negative. The Mayor shall, within five days after the passage of any ordinance, wmants on die Treasury fot claims authorimd by the Council. either approve or veto the same, and no ordinance shall go into effect until approved by the Mayor or passed by the Council over his/her veto. The Mayor shall, in case he/she vetoes any ordinance or resolution,file such veto with the City Recorder,together with reasons for his/her disapproval,which veto and message of disapproval shall be read at the next meeting of the Council, and such ordinance or resolution be put upon its passage again; and, if two-thirds of the Council members shall vote in the affirmative, it shall become law without the Mayor's approval, but not otherwise. In passing all resolutions and ordinances, the ayes and nays shall be called and permanent record made of the vote thereon. ARTICLE 5 Council Members Section 1. Terms The Council members in office at the time this Charter is adopted shall continue in office,each until the end of his/her term of office as fixed by the Charter of the City in effect at the time this Charter is adopted. At each biennial general election after this Charter takes effect, three Council members shall be elected,each for a term of four(4)years. ARTICLE 6 Recorder Section 1. Term The Recorder in office at the time this Charter takes effect shall continue in office until the end of his/her term of office as fixed by the Charter of the City in effect at the time this Charter is adopted. At each biennial general election held in 1970,and every fourth year thereafter,a Recorder shall be elected for a term of four(4)years. Section 2. Powers and Duties The Recorder shall act as Clerk of the Council and shall keep plain and correct records of all business and proceedings of the Council. He/she shall maintain a file of all papers presented to him/her officially, and safely keep all files, records and papers of the corporation pertaining to his/her office, and these shall be open to the public. At the expiration of his/her term of office,he/she shall turn over to his/her successor any and all records,books,and papers pertaining to said office. The Recorder must draw all orders for the proper payment of monies against the proper funds that have been appropriated by the City Council, and, together with the Mayor, sign the same. He/she may make periodic audits of all City accounting records. The Recorder, shall,as soon as the Council shall make a general levy of the taxes for the city,certify the same, together with any and all special benefits and assessments then due, to the Clerk of the County Court. Page 3 of 17 ASHLAND CITY CHARTER The Recorder shall record, in a book to be kept for that purpose,all ordinances and resolutions passed by the City Council; and the same shall be signed by the Recorder, as well as signed and approved by the Mayor therein. Section 3. Vacancy A willful absence of the Recorder from the City for more than thirty (30) days without the consent of the Council, carelessness or inattention to the duties of the Recorder, shall be grounds for the Council to declare the office vacant; and it may fill such vacancy in the same manner as vacancies in the office of Council members are filled. Section 4. Absence In the Recorder's absence,the Mayor shall appoint a Clerk of the Council Pro Tem who,while acting in that capacity,shall have all the authority and duties of the Recorder. ARTICLE 6A Judge Section 1. Term At the biennial general election held in 1978, and every fourth year thereafter,a Judge shall be elected for a term of four(4)years. (Charter amendment 5-23-78) ARTICLE 7 Elections Section 1. Regular Elections Regular City elections shall be held at the same times and places as biennial general State elections,in accordance with applicable State election laws. Section 2. Notice of Regular Elections The Recorder,pursuant to directions from the Council,shall give at least ten(10)days notice of each regular City election by posting notice thereof at a conspicuous place in the City Hall,and by publication in a newspaper of wide and general circulation published in the City of Ashland. The notice shall state the officers to be elected, the ballot title of each measure to be voted upon,and the time and place of the election. Section 3. Special Elections The Council shall provide the time, manner and means for holding any special election which shall comply with applicable State laws. The Recorder shall give at least ten(10) days notice of each special election in the manner provided by the action of the Council ordering the election. Section 4. Reeulation of Elections Except as this Charter provides otherwise and as the Council provides otherwise by ordinances relating to elections,the general laws of the State shall apply to the conduct of all City Elections,recounts of the returns therefrom,and contests thereof. Section 5. Nominations A qualified elector may be nominated for an elective City office to be filled at the election. The nomination must be by a petition that specifies the office sought and must be in a form prescribed by the Council. The petition shall be signed by not fewer than twenty-five (25) electors, and with the candidate's written acceptance of such nomination. No elector may sign more than one petition for each office to be filled at the election. If he/she does so, his/her signature will be valid only on the first sufficient petition filed for the office. The signatures to a nomination petition need not all be appended to one paper, but to each separate paper of the petition shall be attached an affidavit of the circulator thereof, indicating the number of signers of the paper and stating that each signature of the person appended thereto was made in his/her presence, and is the genuine signature of the person whose name it purports to be. Opposite each signature shall be stated the date of signing, the signer's place or Page 4 of 17 ASHLAND CITY CHARTER residence, identified by its street and number or other sufficient designation. The Recorder shall make a record of the exact time at which each petition is filed and shall take and preserve the name and address of the person by whom it is filed. If the petition is not signed by the required number of qualified electors, , the Recorder shall notify the candidate and the person who filed the petition within twelve(12)days after the filing. If the petition is insufficient in any other particular,the Recorder shall return it immediately to the person who filed it, certifying in writing wherein the petition is insufficient. The deficient petition may be amended and filed again as a new petition,or a substitute petition for the same candidate may be filed,within the regular time for filing nomination petitions. All nomination papers comprising a petition shall be assembled and filed in final form as one instrument with the Recorder not less than twelve (12) days before the date that the Recorder must file the same with the County Clerk. (Charter Amendment II-2-82) Section 6. Canvass of Returns In all elections held in conjunction with State and County elections, the State laws governing the filing of returns by the County Clerk shall apply. In each special City election, the retums therefrom shall be filed with the Recorder on or before noon the day following; and,not later than five (5) days after the election, the Council shall meet and canvass the returns. The results of all elections shall be entered in the record of the proceedings of the Council. The entry shall state the total number of votes cast at the election,the votes cast for each person,and for and against each proposition, . the name of each person elected to office,the office to which he/she has been elected, and a reference to each measure enacted or approved. Immediately after the canvass is completed,the Recorder shall make and sign a Certificate of Election of each person elected and deliver the Certificate to him/her within one (1)day after the canvass. A Certificate so made and delivered shall be"prima facie"evidence of the truth of the statements contained in it. Section 7. Tie Votes In the event of a tie vote for candidates for an elective office, the successful candidate shall be determined by a public drawing of lots in the manner prescribed by the Council. Section 8. Oath of Office Before entering upon the duties of his/her office, each officer shall take an oath or shall affirm that he/she will support the constitutions and laws of the United States, the State of Oregon,and the Charter and laws of the City of Ashland,and that he/she will faithfully perform the duties of his/her office. ARTICLE 8 Council Section I. Where Powers Vested Except as this Charter provides otherwise,all powers of the City shall be vested in the Council and the Mayor. Section 2. Composition The Council shall be composed of six(6)Council members elected in the City at large and by position number. Each position shall bear a number running from one(No. 1)through six (No. 6), and any candidate for Council shall, starting with his/her nominating petition, designate the number of the Council seat to which he/she seeks election; further, one candidate may only run for one position at an election. The Council members whose terms of office expire with the end of 1972 shall be assigned seat numbers I, 3 and 5; 1974 shall be assigned seat numbers 2,4 and 6. Within the scope of the preceding provision, the Council shall forthwith determine by lot the numbers to be assigned to the incumbent Council members. Page 5 of 17 ASHLAND CITY CHARTER Section 3. Council Meetings and Rules The Council shall hold a regular meeting in the City at least once each month at a time and place which it designates. Other meetings may be called as the Council deems necessary, with notice given the Mayor and Council members and the public as provided by ordinance. Minutes of any such special meeting shall be presented at the next regular Council meeting. The Council shall adopt rules for its proceedings. Section 4. Quorum The Mayor and not less than three (3) of the Council members, or four (4) of the Council members,shall constitute a quorum for conducting Council business. ' Section 5. Journal The Council shall cause a record of its proceedings to be kept. Upon request of the Mayor or any of the Council members,the ayes and nays upon any question before it shall be taken and entered in the record. Section 6. Proceedings to be Public No action by the Council shall have legal effect unless the motion for the action and the vote thereon take place at proceedings open to the public. Section 7. Mayor's Function at Council Meetings The Mayor shall preside over the deliberations of the Council. He/she shall have authority to preserve order,enforce the rules of the Council,and determine the order of business under the rules of the Council. Section 8. Chair of the Council At the first regular meeting of the Council in January of each year, the Council shall by ballot elect a Chair of the Council from its membership to serve for one(1)year. He/she shall,during all times when the Mayor is absent or unable to attend to his/her duties or act in any matter, have and exercise the powers and perform the duties of the Mayor,except that he/she shall retain his/her . Council member's right to vote. If, at any meeting of the Council,both Mayor and Chair are absent,the Council members present shall elect one of their number as Chair Pro Tern, who shall preside at that meeting. Section 9. Vote Required Except as this Charter otherwise provides,the concurrence of a majority of the members of the Council present at a Council meeting shall be necessary to decide any question before the Council. ARTICLE 9 Special Powers of the Council Section 1. Violation of Charter.Ordinance and Laws The Council,at any regular or adjourned meeting, shall have the power within the limits of the City of Ashland to enact laws, ordinances and pass resolutions not in conflict or inconsistent with the laws of the United States, the State of Oregon, or the provisions of this Charter; and to provide for punishment of any person or persons found guilty by a competent tribunal of the violation of any such laws, ordinances,or any of the provisions of this Charter, by fine.or imprisonment of such offender, until such fine and costs are paid; and to provide for the working of such persons so convicted on the streets of the City or at any other work, and to provide the compensation therefor to be applied on such fine and costs;but no fine shall exceed the sum of$500 and the costs of prosecution,nor shall any imprisonment or term at hard labor exceed 60 days. Section 2. Levy of Taxes The Council, by two-thirds vote of the Council at any regular or adjoumed meeting, shall have the power within the limits of the City of Ashland to annually ordain and levy taxes on the taxable property of the City made taxable by law for County and State purposes, not to exceed fifteen mills on the dollar on the assessed valuation in any year for the expenses of the City; and also in . such further amount as may be necessary for the payment of interest or principal on any bonded Page 6 of 17 ASHLAND CITY CHARTER indebtedness now existing or hereafter to exist against the City and for payment of any judgment or judgments obtained against the City. Section 2a. Flood Damage Restoration Bonds In addition to the indebtedness otherwise authorized by law and by this Charter, the City Council of the City of Ashland shall have the power and authority to issue the general obligation bonds of the City in such amounts and with such maturity dates as the City Council shall,in its discretion,deem advisable in an aggregate amount not to exceed Seven Hundred Fifty Thousand Dollars($750,000.00) for the purpose of financing the cost of repair and restoration in accord with current construction standards of the City's water, sewer, electrical and storm sewer systems; City streets and bridges and watershed roads and bridges; Lithia Park; the repair of riprap at the Ashland Airport; and the purchase of a dredge for the removal of present and continuous accumulations of silt in the City's water reservoir; and to further provide that all state or federal funds received to assist Ashland in repair of flood damage shall be used for that purpose or to pay principal and interest on these bonds and for no other purpose;and shall have the power and right to designate the manner and time of payment of said bonds and the interest thereon, provided that considering any discounts or premiums paid, the effective rate of interest on such bonds shall not exceed that allowable by the laws of the State of Oregon. The power herein granted shall be exercised by the Council without submitting the question to a further . vote of the electors and the bonds issued in pursuance to this Article shall not be subject to the limitation on bond or other indebtedness elsewhere contained in the Charter of said City. Section 2b. Hospital Improvement Bonds In addition to the indebtedness otherwise authorized by law and by this Charter, the City Council of the City of Ashland shall have the power and authority to issue the general obligation bonds of the City in such amounts and with such maturity dates as the City Council shall, in its discretion, deem advisable in an aggregate amount not to exceed Three Hundred Sixty Thousand Dollars($360,000.00)for the purpose of financing the design and construction of additions and improvements to the Ashland Community Hospital; and shall have the power and right to designate the manner and time of payment of said bonds and the interest thereon, provided that considering any discounts or premiums paid,the effective rate of interest on such bonds shall not exceed that allowable by the laws of the State of Oregon. The power herein granted shall be exercised by the Council without submitting the question to a further vote of the electors and the bonds issued in pursuance to this Article shall not be subject to the limitation on bond or other indebtedness elsewhere contained in the Charter of said City. Section 3. Special Assessments The Council shall have the power at regular or adjoumed meeting to levy such special benefit assessments for road, sewer or other special improvements as they deem reasonable and to prescribe the time when such assessments shall be paid and to assess penalties thereon, not exceeding ten percent (10%) when delinquent, which assessments and penalties may be collected under the provisions of Article X11,Sections 1 and 2. - Section 4. Reassessment The Council shall have the power to enact an ordinance to correct any administrative error in the levying of any special benefit assessment and to cause a reassessment to be made. Section 5. Debt Limit The Council,by a two-thirds vote at any regular or adjourned meeting,shall have the power within the limits of the City of Ashland to borrow money upon the credit of the City and authorize the issue of orders or notes therefor to an amount not exceeding $5,000.00 when required for municipal purposes,which orders and notes shall bear a reasonable rate of interest and shall not aggregate at any time to exceed$5,000.00. Section 6. Bonds The Council, by a two-thirds vote at any regular or adjourned meeting, shall issue bonds of the City for other purposes when duly voted and required by a majority of the electors of said Page 7 of 17 ASHLAND CITY CHARTER City;or in rebonding any bonded indebtedness of the City when the same is due and payable and the City has not the funds on hand to pay the same, but in rebonding,bonds shall not be issued for a longer period or greater rate of interest than the bonds to be liquidated. All bonds issued hereafter shall be amended to this Article; that is, Article IX, Section 2, and at such time as they are retired shall be automatically repealed. - Section 7. Water System The Council, by a two-thirds vote of the Council at any regular or adjourned meeting, shall have the power within the limits of the City of Ashland to suppress, restrain,and prohibit any obstruction, pollution, diversion, waste, extravagant use of, waters of Mill or Ashland Creek, either within or above the City limits. ARTICLE 10 Ordinances Section 1. Enacting Clause The enacting clause of all ordinances hereafter enacted shall be: The People of the City of Ashland do ordain as follows:". Section 2. Mode of Enactment (a) Except as the second and third paragraphs of this Section provide to the contrary,every ordinance of the Council shall, before being put upon its final passage, be read first fully and distinctly in open Council meeting and then on a different date by title only, unless a Council member or the public requests that it be read in full for a second time,and it shall then be read fully and distinctly. (b) Provided all conditions set forth in Paragraph(C)have been met, an ordinance may be enacted at a single meeting of the Council by unanimous vote of all Council members present upon being read first in full and then by title. (c) The first reading may be by title alone if no Council member present at the meeting,or the public, requests to have the ordinance read in full, and if a copy of the ordinance is provided for each Council member and three(3)copies are provided for public inspection in the office of the City Recorder not later than one (1) week before the first reading of the ordinance and if notice of their availability is given forthwith upon the filing,by written notice posted at the City Hall and by advertisement in a newspaper of general circulation and published in the City. An ordinance enacted after being read by title alone may have no legal effect if it differs substantially from its terms as it was thus fled prior to such reading, unless each section incorporating such a difference is read fully and distinctly in open Council meeting as finally amended prior to being approved by the Council. (d) Upon the final vote on an ordinance,the ayes and nays of the members shall be taken and entered into the record of the proceedings. (e) Upon the enactment of an ordinance, the Recorder shall sign it with the date of its passage and his/her name and the title of his/her office,except as provided in Article IV,Section 3. Section 3. When Ordinances Take Effect An ordinance enacted by the Council shall take effect on the thirtieth(30th)day after its enactment. When the Council deems it advisable,however,an ordinance may provide a later time for it to take effect;and,in case of emergency, it may take effect immediately. ARTICLE I l Public Improvements Page 8 of 17 ASHLAND CITY CHARTER Section 1. Condemnation Any necessity of taking property for the City by condemnation shall be determined by the Council and declared by resolution of the Council describing the property and stating the uses to which it shall be devoted. The procedure for the condemnation shall be as ordained by the Council or provided by State law. Section 2. Improvements The procedure for making, altering, vacating or abandoning a public improvement shall be governed by general ordinance or to the extent not so governed, by applicable general laws of the State. Action on any proposed public improvement, except a sidewalk or except an improvement unanimously declared by the Council to be needed at once because of an emergency, shall be suspended for six months upon a remonstrance thereto by the owners of two-thirds of the land to be specially assessed therefor. In this section, 'owner" shall mean the record holder of legal title or, where the land is being purchased under a land sale contract recorded or verified to the Recorder in writing by the record holder of legal title to the land,the purchaser shall be deemed the"owner". Section 3. Special Assessments The procedure for the levying,collecting and enforcing the payment of special assessments for public improvements or other services to be charged against real property shall be as provided in Article X11,Sections I and 2 of this Charier. Section 4. Bids All jobs or contracts for constructing, repairing,ornamenting or improving any public place in this City or out of it, the expenses of which are to be paid out of the City Treasury, and the probable cost of which will exceed $500, shall be advertised in a newspaper of wide and general circulation published in the City of Ashland for ten days before the closing of the bids, and shall be done in accordance with the plans and specifications approved by the Council. The Council shall have the right to reject any or all bids without incurring any liability for such rejection. ARTICLE 12 Taxation:Powers and Duties of the Council Section 1. Duties It shall be the duty of the Council immediately after the receipt of the certificate of the County Clerk of the County Court of Jackson County, Oregon, showing the aggregate valuation of the assessable property in said City of Ashland, to meet, and by ordinance annually levy such taxes and assessments as permitted in this Charter against the taxable property of the City of Ashland, and such special assessments and penalties as may be due and unpaid, and cause the same to be certified to the County Court,as provided in Section 2 of this Article. Section 2. Duties The Council shall, immediately after such levy,notify the Clerk of the County Court, under the certificate of the City Recorder,of the rate percent of the tax levy made by the Council and all delinquent special benefit assessments and the penalties thereon,and it shall be the duty of such Clerk to compute the taxes and extend the same by entering the aggregate tax in the appropriate columns on the tax roll, and such taxes, special assessments and penalties shall be collected by the same officer; in the - same manner and at the same time as taxes for County purposes are collected,and the same shall be paid over by the County Treasurer to the City Recorder as provided by law for the paying over of city taxes. Section 3. County Road Tax The territory within the limits of the City of Ashland as now existing and as may be hereafter extended is hereby excepted out of the jurisdiction of the County Court of Jackson County for licensing purposes and road purposes, and the City Council shall have full and exclusive jurisdiction over the same. The inhabitants of the City shall be exempt from the payment of road taxes and assessments of the property within the City for road work, except such taxes as may be levied and assessed by the City Council, and all such taxes shall be placed in a separate fund and used for street purposes within the limits of the City and not otherwise. Page 9 of 17 ASHLAND CITY CHARTER Section 4. Property Transfer Tax. The Council may impose a property transfer tax or fee on property being sold or transferred within the City,only by getting approval of the voters of Ashland. ARTICLE 13 Appointive Officers Deleted:Section t. AppQmove --- ---------�-- ---�� Officers The Mayor,with the Section 1 Separate Police and Fire Departments The City f Ashland shall maintain a fire de artment coormnadon by the Council,shall ....._-_.Y -_--. P appoint a City Administrator,City which is separate and distinct from the City police department. The employees of one department shall Attorney and such other ofbceis as the not be assigned to do the job functions of employees in the other department. (Charter amendment 14- Council der.necessary. The Council may combine any wo or more appointive 86) offices. (Chang amendment 54348) l Deleted:2 Section,7„ Qualifications Duties,and Salaries The Council shall,by ordinances,prescribe the duties of appointive officers, and determine their compensation and qualifications, except the Municipal Judge Deleted:3 shall be a member of the Oregon State Bar. --- - - rDc leted:The council may designate ppve pinto to supmnse any Section 3. Interest in Cit Contracts Exce t as rovided otherwise b law,no officer,a ent or em to ee aipal Jas Ve on Cher.vends the p p y g py wmryal Judgem the eamase of his/her shall have any interest in any City contract made by him/her in his/her official capacity or by any public icial dunes{ committee, board, commission or department of which he/she is a member, agent or employee, except ` Deleted:section 4. Removal The that the employment of the officer,agent or employee shall not be considered a contract for the purposes Mayor,with the consent of the Council, of this Section. l officinal ny nme.�remove any appomr vc Deleted:5 J' Section 4. City Manager. _ ,ci_is established as the chief adminisnativ_e officer of the cif oovernment. Th --- ' -- - 7—'._ 'f he city manager a responsible to the mayor and council for the proper administration of all city Formatted:Font:NO[BOId business. The city manager viiiis-ist rh• manor and council in the deyeloument of city uolicies. and cane out policies established by ordinances and resolutions. Formatted:Font:Not Bold (b A majority of the cquncil must appoint and may mnrox_e the manager. The ali 50l) fitment must be made without regard to political -onsidetation- and solely based on education and experience with local government management. Formatted:Font:Not Bold (c)The manager may be appointed for a definite or an indefinite term and may be removed at am•time by a majority of'the council. The council must till the office bv_appoinnnenr as soon as practicable after the vacancy occurs. Formatted:Font Not Bold (d)The manager must: if)Attend all council meetings unless excused by the mayor or council .. Formatted:Font:Not Bold (Z)Make re ports and recommendations to the mayor and council about the needs of the city _ - __--- Formatted:Font:Not Bold (3) Administer and enforce all city ordinances resolutions. franchises, leases contracts, permits and_ _--- Formatted:Font Not Bold other city decisions: J4)Appoint,su crvi'e and remove city employees: -- Formatted:Font:Not Bold /j)Organize city departments and administrative sill)CtprC: -- Formatted:Font:Not Bold (6) Prepare and administer the annual city budget: Formatted:Font:Not Bold (7) Administer city unities and piopertv: -..._.----_---------------___._......------__-_------------._._._ -terg vein --"'-- --' -- Formatted:Font:Not Bold (`;)Encourage and support regional and inter>oyernmenml cooperation __ ___ _______ ____ ,('_J Promote cudrpualion emon,� the council staff and cillrcns in developing tits policies. and - Formatted:Font:Not Bold building a sense of community Formatted:Font:Not Bold .(10) Perform other duties as directed by the council: ----------------------------- Formatted:Font:Not Bold Page 10 of 17' ASHLAND CITY CHARTER (1 1)Deleuat e duties but "e nrf n responsible for acts of all subordinates. - Formatted:Font:Not Bold if)The manaecr has no authority over the mavor or council or over the judicial functions of the municipal_ Formatted:Font:Not Bold ui lfle. t,I The manager and other employees designated by the council may sit at council meetings but have no__ Formatted:Font:Not Bold ante The inana eg r may take cart in all council discussions. " Formatted;Font:Not Bold th) When the manaeer is temporarily disabled from acting as manager or when the office becomes vacant, the council must appoint a manager oro tern The manager pro tern has the authority and duties of manager,except that a pro tern manager may appoint or remove employees only with council approval. Formatted:Font:Not Bold (i) Neither the mayor nor a councilor may attempt directly or indirectly to coerce the manager or a candidate for the office of manaeer in the appointment or removal of any city employee or in administrative decisions. Violation of this prohibition is grounds for removal from office by four councilors after a public hearing In council meetings the mayor and councilors may discuss or SUecCSt any topic with the manager relating to city business. ,Section 5 City Attorney. The office of city attorney is established as the chief le4al officer of the city _ Formatted:Font:Bold govemnunt. The moor with the consent of the city council must ap>}_oint and m;ty remove the attorney; l"he anonev must appoint and supervise-and may rentoee any legal office cm lovees. ARTICLE 14 Chief of Police: Powers and Duties Section 1. The Chief of Police shall be the conservator of the peace within the limits of the City of Ashland and, in addition to the authority vested in him/her by the City Council, he/she shall have the authority and jurisdiction of a constable, and shall qualify and discharge the duties of constable, in the same manner and to the same effect as required of constables under the statutes of this State. He/she shall, within the County of Jackson, arrest any and all persons guilty of any breach of the peace ' committed in his/her presence, and take them before the judge of the City Court, or some Justice of the Peace for trial. He/she shall also have the power,under any warrant from the Judge,or any Justice of the Peace, to arrest any person in any part of the State of Oregon for any criminal offense or the violation of any City ordinance and, in case the Council shall establish a police force for the City, he/she shall by virtue of his/her office be Chief of such force. Section 2. The Chief of Police shall attend all meetings of the City Council,and perform the duties of the Sergeant-at-Arms of that body,watch over,care for and preserve all the City property and good morals of the City;and it shall be his/her duty,and the duty of any and all police officers,to see that all the laws and ordinances of the City, and the provisions of this Charter, are enforced, to file complaint with the City Judge against any persons violating any of the provisions of this Charter,or the laws or ordinances of the City; and a failure or neglect to faithfully perform any or all of such duties shall be cause for removal from office by the City Council. ARTICLE 15 Court Section 1. Court A court is hereby created in the City of Ashland, Oregon, to be known as the Municipal Court. The court shall be open for the transaction of judicial business at regular times specified by the Council. All area within the City shall be within the territorial jurisdiction of the court. When not governed by ordinances or this Charter,all proceedings in the Municipal Court for the violation Page 1 I of 17 ASHLAND CITY CHARTER of a City ordinance shall be governed by the applicable general laws of the State governing District Courts. Section 2. Judge The Municipal Judge shall be the judicial officer of the City. He/she shall exercise original and exclusive jurisdiction of all offenses defined and made punishable by ordinances and Charter of the City and all other offenses made punishable by State law over which the City is given concurrent jurisdiction. He/she shall have authority to issue process for the arrest of any person accused of an offense against the ordinances and Charter of the City,to commit any such person tojail or admit him/her to bail pending trial, to issue subpoenas, to compel obedience to such subpoenas, to issue any process necessary to carry into effect the judgments of the Court,and to punish witnesses and others for contempt of the Court. The Judge shall make a monthly report of the Court's proceedings in writing to the City Council. Section 3. Term The term of the Municipal Judge shall be four(4)years.(Charter amendment 5-23-78). Section 4. Jury A defendant may have a jury of six (6) members by demanding the same. Any jury chosen shall be governed by the laws of the State of Oregon relating to juries in the District Court, and shall have the qualifications of such jurors resident within the corporate limits of said City. Section 5. Fines, Fees, Costs. and Cash Bail The City Council shall provide for the collection of all Court fines,fees,costs and cash bail which shall be turned over to the City Recorder. ARTICLE 16 Miscellaneous Provisions Section 1. Public Utilities - Water Works The City of Ashland,a municipal corporation,shall have the power to provide the residents of said City with such services as water, sewer, electric power, public transportation and such other public utilities as the people desire by majority vote; and to exact and collect compensation from the users of such public utility;provided, however,that any and all water and water works and water rights now owned or which may hereafter be acquired by said City, for the purpose of supplying the inhabitants thereof with water shall never be rented, sold or otherwise disposed of; nor shall the City ever grant any franchise to any person or corporation for the purpose of supplying the inhabitants of said City with water. Section 2. Torts The City's immunity or liability for torts shall be as determined by State law. Section 3. Existing Ordinances, Acts,Proceedines All existing ordinances in force when this act takes effect and not inconsistent herewith shall be and remain in full force after this act takes effect and thereafter until repealed by the Council. All actions and proceedings pending and all unfinished business whatsoever when this act takes effect shall thereafter be proceeded with according to the provisions of this act or any City ordinance applicable thereto and continued in force by this act. No suit, action or proceeding now pending in any Court shall abate by virtue of this act, and all persons in office shall continue to receive such compensation for their services during the balance of their term as appertained to the office at the time they were respectively elected or appointed thereto;and all rights vested or liabilities incurred when this act takes effect shall not thereby be lost, impaired or destroyed; all bonds theretofore - issued by said City are hereby declared to be valid and of full force and effect,and all acts of the Council heretofore done in good faith for the benefit of the City and on which proceedings shall not be instituted prior to July 1, 1970 are hereby legalized and made valid in every particular. Section 4. Repeal of Previously-Enacted Provisions All Charter provisions of the City enacted prior to the time that this Charter takes effect are hereby repealed,except the provisions of the legislative Charter of 1898 relating to the Powers of the Chief of Police; that is, Article X, Section I compiled herein as Article XIV, Section 1; Powers and Duties of the Council -Taxation;that is, Article XII, Sections I and 2, compiled herein as Article XII, Sections I and 2; and Territory Excepted for Road Purposes and Page 12 of 17 ASHLAND CITY CHARTER Licensing Purposes; that is,Article XVII, Section I,compiled herein as Article X11, Section 3; and those provisions of the previous Charter Amendments included in the following: • Article VII,Section 1,amended 11-2-54,compiled herein as Article IX, Section I • Article VII,Section 2,amended 1-28-09,compiled partially herein as Article IX,Sections 2 and 3 • Article VII,Section 3,of 1898 Charier,compiled herein as Article IX,Section 5 • Article XXVIII, Sections I and 2, amended 11-4-30 and 10-16-59, compiled herein as Article XVII, Sections I and 2 • Article XIX, Sections I, 2, and 4, amended 12-15-08, and Section 3, amended 4-23-51, compiled herein as Article XIX,Sections I,2,3 and 4 • Article XXVII,Sections 1,2,3,and 4 amended 11-11-28,compiled herein as Article XVIII,Sectons 1,2,3,and 4 • Article XXIX,Section 1,amended 11-4-30,compiled herein as Article XX,Section 1 • Article XXXI, Section I,amended 1938,compiled herein as Article XXI,Section I • Article X,Section 2,amended 7-17-19,compiled herein as Article XIV,Section 2 . • Article XIX,Section 1-C,amended 3-12-57,compiled herein as Article XIX,Section I-C Section 5. Time of Effect of Charter Amendment This amended Charter took effect on July 1, 1970, except that Amendments to Article 111, Section 2; Article VIII, Section 2; Article X, Section 2; Article Xlll,Section I and Article XXII took effect on June 6, 1972. ARTICLE 17 Hospital Section 1. The City of Ashland is hereby authorized and empowered to own, operate and conduct a municipal hospital within the limits of said City of Ashland under the authority and direction of the, Council. Section 2. The Council is hereby authorized to issue and sell, in manner and form as in its judgment it may deem best,general obligation bonds of said City in a sum not to exceed $350,000.00 for the purpose of providing funds with which to purchase real property for a hospital,construct a building or buildings to be used for hospital purposes,and equip and furnish said hospital in and for said City. Said bonds shall bear the date established by the Council, be serial in character, callable at any interest payment date in whole or in part on or after five(5)years from the date thereof after notice as provided by law,be retired by the said City in a period of not to exceed twenty-five(25)years,be in denomination of$1,000.00 each, be signed by the Mayor and countersigned by the Recorder under the corporate seal of said City, have - semi-annual interest coupons bearing the facsimile signatures of the Mayor and Recorder attached thereto, by the terms thereof pledge the full faith and credit of the said City for their repayment, and hold and promise to pay to the bearer of each of said bonds at maturity thereof, the sum therein named in legal tender of the United States of America,with interest thereon in like legal tender,at the office of the City Recorder in said City or at such other office as the Council may, in its judgment,determine,which bonds shall be known as"Hospital Bonds". The particular form of said bonds,the maturities thereof,the rate of interest thereon, and such other details of their issuance and sale as are not herein mentioned shall be determined by the Council in the exercise of its best judgment in order to carry out the intention hereof. That it shall be the duty of the Council to attend to the proper application of the funds derived from the sale of said bonds and the purchaser or purchasers thereof shall in no event be responsible or charged with the proper application of the funds derived from the sale thereof. That the Council is hereby authorized and empowered each year at the time of making the annual tax levy for City purposes to include in such levy a sufficient amount to meet the payment of principal and interest on said Hospital Bonds as same shall be come due, and this authority shall be in addition to all Charter and Oregon Constitution debt limitation. Page 13 of 17 ASHLAND CITY CHARTER ARTICLE I8 Cemeteries Trust Fund Section 1. The Council is hereby authorized and empowered each year,at the time of making the annual levy for City purposes, to include in such levy a sum equal to but not to exceed one mill on each dollar of assessed valuation of property within the City, which sum shall be used for the purpose of maintenance and upkeep of cemeteries held by, or under control of the City of Ashland. Such levy shall not be within the limitation of taxation provided by law. Provided further that each year from the proceeds of such levy the Council shall set aside in a permanent trust fund the sum of$500.00, the income from which shall be used to carry out the purposes mentioned herein. When such trust fund shall have accumulated to such an extent as to provide sufficient income for the purposes for which same was created, then no further tax levy shall be made thereafter. Section 2. The Council is hereby given authority to receive control, for and on behalf of the City of Ashland, or any privately-operated or owned cemetery within the said City for the purpose of providing proper upkeep and maintenance of any such cemetery, said Council to receive such control only upon conditions as to it may seem for the best interests of the City. Section 3. The Council is hereby authorized to create such funds as, in its discretion, may be necessary for the purpose of keeping and maintaining in proper condition the cemeteries within or adjacent to the City of Ashland, and under the jurisdiction of said Council, and is further authorized from any monies received from sale of cemetery lots, to specifically create a must fund for the perpetual upkeep of the lots so sold,and is further authorized to contract with the purchasers of any lots so sold, on behalf of the City of Ashland, for the perpetual upkeep of said lots on such terms and conditions as said Council may deem best for the protection of said City. Section 4. The Council is hereby authorized to accept any bequests or donations for the purposes mentioned herein on behalf of the said City, which donations or bequests shall become a part of said permanent trust fund,unless specified otherwise when any such bequests or donations are given. ARTICLE 19 Park Commission Section 1. Dedication All those lands specified by the Charter Amendment of December 15, 1908 and May 13, 1912, are hereby reserved and forever dedicated to the people of the City for park purposes and shall never be sold, leased, encumbered or used for any purpose inconsistent therewith; provided, however, that such public buildings as may enhance the beauty of said park, or that shall not detract therefrom,may be constructed if so directed by a majority vote of the electors of said City; and provided further, that nothing contained in this act shall be construed so as to impair or interfere with proper construction or operation of the City's light,power or water system. Section 1C. That the Ashland Park Commission,with the consent of the Common Council,shall have the authority to lease to the Oregon Shakespearean Festival Association,a non-profit corporation of the State of Oregon,any portion of Lithia Park described as follows,to-wit: That certain property commencing at the northeast comer of the Chamber of Commerce building; thence, southerly along the base of the hill to southern side of pond in lower park; thence, east to ditch carrying water to waterfall; thence, southerly along ditch 150 feet;thence,east 110 feet to west side of Hargadine Street;thence,northerly on west line of Hargadine Street to northeast corner of park property; thence, following the meandering north line of park property to place of beginning, containing approximately two acres for the purpose of remodeling and expanding the present Festival theatre and the construction of additional buildings which are hereby designated as public buildings Page 14 of 17 ASHLAND CITY CHARTER for use by the Oregon Shakespearean Festival Association for any of the purposes authorized by the corporate charter of said association, said use to be on such terms and conditions as the Ashland Park Commission, with the consent of the Common Council, deems in the best interests of the City;provided,however,that any lease shall not exceed a period of ninety-nine(99)years. Section 2. Park Commission The certain board created by a vote of the qualified electors of the City of Ashland, Oregon, at a special election held on the 15th day of December, 1908, which became effective by the proclamation of the Mayor published on the 17th day of December, 1908, and known and designated as the "Ashland Park Commission", be and the same, as constituted and created by said Charter amendment, and as now existing, is hereby perpetuated and continued as five (5)members with all the powers conferred and duties imposed by said Charter amendment and ordinances of the City of Ashland. Provided, that at the general biennial election to be held on the first Tuesday after the first Monday in November, 1920,two commissioners shall be elected to serve for the term of four(4)years from the first day of January, 1921, and that at the general biennial election to beheld in November, 1922, three commissioners shall be elected to serve for the term of four(4)years from the first day of January, 1923, and that the term of office for each succeeding commissioner shall be four(4)years unless elected to fill a vacancy, in which event he/she shall be elected to serve until the first day of January following the next succeeding biennial election after any such vacancy. Provided, further, that each of the commissioners now constituting the present Ashland Park Commission shall hold office for the term for which he/she was elected,and until his/her successor is elected and qualified. Section 3. Funding The said Park Commission shall have control and management of all the lands here dedicated for park purposes and of all other lands that may hereafter be acquired by the City for such purposes. They shall have control and management of all park funds, whether the same is obtained by taxation,donation or otherwise, and shall expend the same judiciously for beautifying and improving the City's parks. It shall be the duty of said Commission and they shall, at the beginning of each month, file with the City Recorder for the information of the City Council and the public,a report of their doings for the preceding month. Such report shall specify all funds on hand and the source from whence obtained. It shall carry a clear statement of all monies expended and for what purpose. All purchases made and all labor performed,together with the cost thereof,shall be embodied in said report. At the time for making the tax levy for general City purposes in each year, the said Commission shall cause a careful estimate to be made of the money required for park purposes for the ensuing year and file the same with the City Recorder, whereupon there shall be included in said general levy not to exceed four and one half(4-1/2) mills on the dollar to meet such requirements, which, when collected, shall be deposited with the City Recorder subject to the order of said Commission. The levy herein authorized shall be outside the limitation on taxation set forth in Article Xl,Section 11 of the Constitution of Oregon. Section 4. Salary; Government The said Commission shall serve without pay and shall have power to formulate and adopt rules and regulations for their government and for the purpose of carrying into effect the purposes of their creation as Park Commission. They shall enter upon the discharge of their duties immediately upon their organization and shall, as soon as may be expedient, cause a map or maps to be made of the lands herein dedicated,and shall make the same conform to the descriptions contained in the instruments by which said City obtained title thereto; which said instruments shall be considered as carrying a more specific description of said lands. Page 15 of 17 ASHLAND CITY CHARTER ARTICLE 19a Open Space Park Program Section 1. Creation. Powers and Duties An Open Space Park Program is hereby created to be administered by the Ashland Park Commission. The Park Commission shall make recommendations to the City Council concerning priorities for land and easement acquisitions for the Open Space Park Program. After dedication of land to the Open Space Park Program, the Ashland Park Commission shall be responsible for the administration,development and operation of such lands. Section 2. Land and Easement Acquisition Procedures Both the Ashland Park Commission and the City Council must agree upon land or easements to be acquired for open space park purposes. Before any land or easements that have been acquired for the Open Space Park Program are disposed of and released from the Program there shall be a public hearing. -Disposal shall be by Ordinance, which shall not contain an emergency clause, thus giving to the people of the City of Ashland the opportunity to petition for a referendum. Land or easements acquired for open space park purposes shall be dedicated by the City Council for such purposes. Such dedicated lands or easement shall be under the control and management of the Ashland Park Commission. The City Council shall not use the power of condemnation to acquire fee simple ownership of any land for Open Space purposes or for trails. (Amended 8-14-90) Section 3. Resources Monies dedicated to the Open Space Park Program shall be expended only for Open Space lands or easements, for costs of acquisition and for such other purposes pertinent to the Open Space Park Program as the Council and Park Commission mayjointly determine. All monies dedicated for acquisition of Open Space Park Program lands shall remain under the financial management of the City of Ashland. The tax measures for funding for land acquisition for the Open Space Park Program shall be approved by the voters, and the tax rates approved therein by the voters shall not be altered for Open Space purposes by the City Council without further approval by the electorate. Said tax measures for funding of the Open Space Park Program shall expire on December 31, 2010, unless extended by a vote of the electorate. (Amended 8-14-90) Section 4. Definition and Pumose of Open Space Park Lands The definition and purpose of open space park lands shall be as defined in State Law, ORS 308.740, or as modified by Ordinance of the City of Ashland. (Amended 5-15-90). ARTICLE 20 Municipal Airport Section 1. Power The City of Ashland is hereby given the power and authority to acquire,own,conduct and operate a municipal airport either within or outside the limits of the City of Ashland, under the authority and direction of the Council. ARTICLE 21 City Band Section 1. At the time of making the tax levy for general City purposes each year,the Council shall cause a careful estimate to be made of the money required for the purpose of a City Band for the ensuing year, such estimate shall be presented and considered with the other items in the annual budget and there shall be included in the general levy for the ensuing year not to exceed six-tenths (A) mills on the dollar for such band requirements,which fund,when collected,shall be deposited with the City Recorder,subject to the order of the Council. Page 16 of 17 ASHLAND CITY CHARTER ARTICLE 22 Recreation Commission Section I. The Ashland Recreation Commission is hereby created to be composed of the five(5)Ashland Park Commissioners and their terms of office shall be the same. Section 2. The powers and duties of the Recreation Commission shall be as set forth in this Charter, the Ordinances of the City of Ashland,and by any other applicable law. Section 3. Any funds to be spent by the Recreation Commission for recreation purposes shall be from such funds as may be appropriated from time to time by the City Council,and in nc event shall any funds be spent for recreation purposes that are received pursuant to Article XIX of this Charter and which relates to the Park Commission and a levy for park purposes. Page 17 of 17 CITY OF ASHLAND Council Communication Discussion of Transient Occupancy Tax Use Meeting Date: February 6, 2007 Primary Staff Contact: Lee Tuneberg J Department: Administrative Services E-mail:tunebed @ashland.or.us Contributing Departments: NA Secondary Staff Contact: NA Approval: Martha Bennett E-mail: Estimated Time: 30 minutes Staff Requests: Staff requests Council provide direction on what changes are desired for the revenue generated by City of Ashland's Transient Occupancy Tax, the rate charged and the allocation of funds generated by the tax. Statement: At the November study session Council asked staff to bring back tentative goals for the use of Transient Occupancy Tax (TOT) revenues and potential options for changing the amount (rate) charged. Background: The City of Ashland has a 7% TOT tax rate. This revenue stream is sometimes referred to as a Hotel/Motel or Bed Tax. It is collected by hotels, motels, bed and breakfasts and hostels. In FY 2005-06 this tax generated $1,414,160 in revenue to the General Fund and was used as follows: Tourism Grants $205,197 Economic Grants $274,989 General Fund resources $933,974 Please note that the tourism amount and grant allocations are based upon the adopted budget and actual revenue will vary from that amount. In 2004 the State of Oregon passed legislation that restricted the use of these funds and established guidelines on what happens to any additional amount of revenue generated if the tax rate is raised. Basically, the city is required to spend a similar prorate share on tourism as was in place prior to 2004 and must dedicate 70%of any new revenue streams from an increased tax rate on tourism.. Resolution 2004-32 was adopted to deal with the new State laws. The resolution established what portion was dedicated toward tourism as defined by the State. The resolution also carried forward other goals established by the City for grants given to the Chamber of Commerce, Oregon Shakespeare Festival and smaller grantees relating to tourism and economic development. Attached is a list of grants provided in the recent past. Council asked for comparative information relating to the TOT rate in Ashland and other communities. Below is a comparison table of other city's Transient Occupancy Tax rates. �r, City Rate Portland 11.5% Bend 9.0% Medford 9.0% Astoria 9.0% Grants Pass 9.0% Klamath Falls 9.0% Salem 9.0% Seaside 8.0% Roseburg 8.0% Cannon Beach 6.0% Eugene 4.5% Springfield 4.5% As can be seen, Ashland is less than most, falling between the rates charged by other tourist locales, Canon Beach and Seaside. It would appear that Eugene and Springfield are"deadlocked"at 4.5%, neither forcing tourists to stay in the other's boundaries simply through a higher tax rate. If Ashland were to raise its rate, each additional 1%would generate over$151,000 to be spent on tourism per the State's definition and about$65,000 in revenue to be used for any other programs. The following table illustrates how an increase from a 7% tax to 8%would affect the estimated overall revenue, the amount required to go toward tourism and what additional amount would be generated for other use per ORS 305.824(5)(b). Current 7% Increase to 8% Total TOT Revenue $ 1,514,100 $ 216,186 $1,730,286 Portion of increase to Tourism (70%) 151,330 Portion available for other uses (30%) 64,856 This means that 70%of the revenue generated by an increase ($151,330) will need to be added to the budgeted $215,456 already going toward tourism, of which the largest portion goes to the Chamber of Commerce for visitors and convention services. Approximately$65,000 would be generated for City services not tourism based. Goals included in the grant resolution have been similar in wording for many years but interpretation and application has shifted over time. Some Council members and budget Committee members have recalled unwritten goals to use the money as"seed" money to get small groups and/or new programs started. The resolution has provided money for ongoing programs including and beyond the work done by the Chamber and OSF. Many smaller grant applicants have received annual allocations per the attached table. Council requested staff provide potential changes to the resolution and goals to assist in determining how the City can best use funds generated, supporting tourism and economic development yet remaining compliant. More specific goals in the three categories will assist the awarding of grants to applicants and reporting by them on how the money was used. Examples of more specific goals are: Tourism: • Someone who travels to Ashland from more than 50 miles away to attend an event • Someone who stays the night in Ashland to attend an event Economic Development • Increase number, variety and size of employers • Wages at or above median wage • Employ 5 to 100 people or locally owned • Encourage local resources • Work with Southern Oregon University, especially for international • Discourage businesses that need water, that emit air pollution, or that create toxic waste Cultural Development Proposed • Increase number, variety and size of cultural opportunity • Support diversification of local economy • Showcase local talent • Work with Southern Oregon University Staff offers the following information to assist the discussion on what could be done different with the use of the funds providing additional monies for specific City programs: 1. Raise the tax by 1%to 8% resulting in a total commitment to tourism expenditures of$366,786($215,456 + $151,330). 2. Allocate the same portion to Oregon Shakespeare Festival as currently provided which is approximately $112,200 3. Allocate the remainder of tourism dollars required ($366,786-$112,200 = $254,586)to the Chamber of Commerce for Visitor Convention Bureau. 4. Allocate$150,000 to grantees for economic development or cultural development per applications to maintain a consistent total level of support. 5. Allocate $950,000 to General Fund as general revenues to maintain a consistent total level of support. 6. Allocate the remainder of total TOT revenues to go toward specific General Fund programs including other economic development work, AFN support or debt, social programs, etc. 2007 Allocation Proposed Allocation per Budget with 1%increase New Dollar Allocated $1,514,100 $1,730,286 By Category Tourism Chamber of Commerce $ 82,845 $ 170,641 $ 253,486 Oregon Shakespeare Festival 113,300 - 113,300 Other Grantees 19,311 (19,311) Total $ 215,456 $ 151,330 $ 366,786 Economic and Cultural Development Chamber of Commerce $ 164,800 $ (164,800) $ - Other Grantees 124,394 25,606 150,000 Total $ 289,194 $ (139,194) $ 150,000 General Fund Resources Non Specific $ 1,009,450 $ - $ 1,009,450 Specific Programs 204,050 204,050 Total $ 1,009,450 $ 204,050 $ 1,213,500 �r, Council Options: Council can ask staff to: 1. Bring to Council a resolution that mirrors the existing 2004-32 for renewal. 2. Bring to a future Council meeting a revised resolution that addresses items discussed in this study session. 3. Work with identified individuals (Council members, staff or others) to create a new resolution that manages and/or allocates the TOT revenue collection and distribution differently per State guidelines and City goals. Potential Motions: 1. Council accepts staff recommendation as presented 2. Council amends recommendation 3. Council directs staff to bring back more information for discussion Attachments: Resolution 2004-32, 2004-11, 2000-25, 1998-02, and 1993-12 Economic and Cultural Development Grant Allocation with Tourism Calculation Small Grants Tourism Allocation Economic and Cultural Development Grant History RESOLUTION NO. 2004- 32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTEL/MOTEL(Transient Occupancy)TAX AND REPEALING RESOLUTION 2004-11 THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. That the city council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax. SECTION 2.The following are the goals which the Economic and Cultural Development Committee is attempting to meet by granting money to applicants: . a) Tourism Promotion. b) Economic Development by: 1) Responding to general inquiries about business in the city; 2) Providing assistance to existing small businesses; 3) Providing technical and financial assistance for the expansion of existing businesses; 4) Providing technical and financial assistance for the development of new businesses; or 5) Providing such other services and support to business as the city council may deem beneficial. c) Cultural Development. SECTION 3. Beginning in Fiscal Year 2004/2005,the city council will appropriate thirty- three and one-third percent(33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development. The City of Ashland has determined that as of July 1,2003, $186,657 or 14.23%of total Hotel/Motel tax revenues were expended on tourism promotion, as defined in Chapter 818 of the 2003 Oregon Laws, and will continue to be spent on tourism promotion increased or decreased annually consistent with the estimated TOT revenues budgeted. The amount to be allocated annually to Ashland Chamber of Commerce (COC) and Oregon Shakespeare Festival (OSF) for promoting tourism per the state definition shall be $80,432 and $110,000, respectively,adjusted each year by the amount of inflation or deflation established in the Budget process. An additional amount of$160,000, adjusted each year by the amount of inflation or deflation established in the Budget process, will be granted annually to COC for economic development projects in cooperation with City staff. The allocations in this paragraph shall sunset after three years. Any additional amount for tourism required by Chapter 818 shall be allocated to COC, OSF or other group during the budget process. The remainder of the monies budgeted for these grants may be allocated to grantees for activities fitting in any of the three categories set forth in Section 2 of this Resolution. TOT Resolution 9/07/04 page I of 2 By January 31 of each year each recipient of grants under this resolution shall submit a report to the city council setting forth how the grant funds received were expended in furtherance of the goals set forth in Section 2. SECTION 4.The following guidelines and criteria are established for the Economic and Cultural Development Grants: a) Grantee shall be a 501(c) non-profit agency. b)Grantee shall be a non-governmental agency. c) Grantee shall promote livability for the citizens of Ashland. d) The minimum grant proposal will be $1,000. e) The grant will benefit Ashland in regards to enrichment and activities of an economic nature. f) Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley. g) Irrespective of sub-paragraph `b', the City of Ashland Public Arts Commission may apply for and receive funds. SECTION 5. Resolution 2004-11 is repealed upon passage of this resolution. SECTION 6. This resolution takes effect upon signing by the mayor. This resolution was read by title only in accordance with Ashland Municipal Code Section 2.04.090 duly PASSED nd ADOPTED this>Xday of A� t 2004 I' Barbara Christensen, City Recorder SIGNED and APPROVED thisXday otRrg=7 2004: i Alan DeBoer, Mayor TOT Resolution 9/07/04 page 2 of 2 RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTEL/MOTEL (Transient Occupancy) TAX AND REPEALING RESOLUTION 2000-25 THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. That the city council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax. SECTION 2. The following are the goals which the Economic and Cultural Development Committee is attempting to meet by granting money to applicants: a) Tourism Promotion. b) Economic Development by: 1) Responding to general inquiries about business in the city; 2) Providing assistance to existing small businesses; 3) Providing technical and financial assistance for the expansion of existing businesses; 4) Providing technical and financial assistance for the development of new businesses; or 5) Providing such other services and support to business as the city council may deem beneficial. c) Cultural Development. SECTION 3. Beginning in Fiscal Year 2004/2005, the city council will appropriate thirty-three and one-third percent (33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development. The City of Ashland has determined that as of July 1, 2003, $186,657 or 14.23% of total Hotel/Motel tax revenues were expended on tourism promotion, as defined in Chapter 818 of the 2003 Oregon Laws, and will continue to be spent on tourism promotion increased or decreased annually consistent with the estimated TOT revenues budgeted. The amount to be allocated annually to Ashland Chamber of Commerce (COC) and Oregon Shakespeare Festival (OSF) for promoting tourism per the state definition shall be $80,432 and $110,000, respectively, adjusted each year by the amount of inflation or deflation established in the Budget process. An additional amount of $160,000, adjusted each year by the amount of inflation or deflation established in the Budget 1- 2004 TOT final resolution process, will be granted annually to COC for economic development projects in cooperation with City staff. The allocations in this paragraph shall sunset after three years. Any additional amount for tourism required by Chapter 818 shall be allocated to COC, OSF or other group during the budget process. The remainder of the monies budgeted for these grants may be allocated to grantees for activities fitting in any of the three categories set forth in Section 2 of this Resolution. By January 31 of each year each recipient of grants under this resolution shall submit a report to the city council setting forth how the grant funds received were expended in furtherance of the goals set forth in Section 2. SECTION 4. The following guidelines and criteria are established for the Economic and Cultural Development Grants: a) Grantee shall be a 501(c) non-profit agency. b) Grantee shall be a non-governmental agency. c) Grantee shall promote livability for the citizens of Ashland. d) The minimum grant proposal will be $1,000. e) The grant will benefit Ashland in regards to enrichment and activities of an economic nature. f) Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley. SECTION 5. Resolution 2000-25 is repealed upon passage of this resolution. SECTION 6. This resolution takes effect upon signing by the mayor. This re olution was read by title only in accordant with Ashla d Municipal Code §2.0 . 90 duly PASS D and ADOPTED this day of Z&&41 2004. arbara Christensen, City Recorder SIGNED and APPROVED this day of /SAY 2004. r Alan W. DeBoer, Mayor RII vi ed s tb form: U Paul Nolte, City Attorney 2- 2004 TOT final resolution • �J �J RESOLUTION NO. 0, 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTEL/MOTEL (Transient Occupancy) TAX AND REPEALING RESOLUTION 98-23. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. That the City Council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax. SECTION 2. Beginning in Fiscal Year 2001/2002, the City Council will appropriate thirty three and one-third percent (33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development. Sixty percent (60%) of these funds will be allocated to the Ashland Chamber of Commerce; twenty eight percent (28%) will be allocated to the Oregon Shakespeare Festival; and twelve percent (12%) will be granted to local organizations which promote Economic and Cultural Development. The anticipated budget for subsequent fiscal years shall be based on the previous year's actual receipts. Actual receipts which exceed the anticipated amounts will remain in the General Fund. By January 31 of each year the Chamber of Commerce and the Shakespeare Festival shall make a report to the City Council regarding meeting the goals in Section 3. SECTION 3. The following are the goals which the Economic and Cultural Development Committee is attempting to meet by granting money to applicants. a) To respond to general inquiries about business in the City. b) To promote tourism. c) To provide assistance to existing small businesses. d) To provide technical and financial assistance for the expansion of existing businesses. e) To provide technical and financial assistance for the development of new businesses. f) To provide information and financial assistance to small cultural organizations to: 1) attract tourists with emphasis on the off-season; 2) create a greater diversity of cultural opportunities for our citizens. SECTION 4. The following guidelines and criteria are established for the Economic and Cultural Development Grants. a) Grantee shall be a 501(c) non-profit agency. b) Grantee shall be a non-governmental agency. c) Grantee shall promote livability for the citizens of Ashland. d) The minimum grant proposal will be $1,000. G:\city-admin\admin\Administration\Reso-Hotel Motel tax 2000 e) The grant will benefit Ashland in regards to enrichment and activities of an economic nature. f) Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley. SECTION 5. Resolution 98-23 is repealed upon passage of this resolution. This resolution was read by title only in accordance with Ashland Municipal Code Sec. 2.04V.90 duly PASSE a d ADOPTED this _Z9 day of,, �000. arbara Christensen, City Recorder SIGNED and APPROVED this day of ' 2000. Catherine M. Shaw, Mayor Rev' ed as to form: Paul KI e, City Attorney G:\city-admin\admin\Administration\Reno-Hotel Motel tax 2000 RESOLUTION NO. 98- Oo - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTEUMOTEL (Transient Occupancy) TAX AND REPEALING RESOLUTION 93-12. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. That the City Council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax. 1 SECTION 2. That the City Council will appropriate thirty three and one-third percen (33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development. Sixty percent (60%) of these funds will be allocated to the Ashland Chamber of Commerce; twenty eight percent (28%) will be allocated to the Oregon Shakespeare Festival; and twelve percent (12%) will be granted to local organizations which promote Economic and Cultural Development. Effective with the 1999-2000 Budget, and annually thereafter, the allocations to the Shakespeare Festival and the Chamber of Commerce shall be adjusted by an amount equal to their respective shares of the actual tax collection in the previous fiscal year. By January 31 of each year the Chamber of Commerce and the Shakespeare Festival shall make a report to a joint meeting of the City Council and the Budget Committee regarding meeting the goals in Section 3. SECTION 3. The following are the goals which the Economic and Cultural Development Committee is attempting to meet by granting money to applicants. a. To respond to general inquiries about business in the City b. To promote tourism c. To provide assistance to existing small businesses d. To provide technical and financial assistance for the expansion of existing businesses e. To provide technical and financial assistance for the development of new businesses f. To provide information and financial assistance to small cultural organizations to: 1) attract tourists with emphasis on the off-season; 2) create a greater diversity of cultural opportunities for our citizens SECTION 4. The following guidelines and criteria are established for the Economic and Cultural Development Grants. a. Grantee shall be a 501(c) non-profit agency b. Grantee shall be a non-governmental agency c. Grantee shall promote livability for the Citizens of Ashland d. The minimum grant proposal will be $1,000 e. The grant will benefit Ashland in regards to enrichment and activities of an economic nature f. Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley SECTION 4. Resolution 93-12 is repealed upon passage of this resolution. This resolution was read by title only in accordance with Ashland Municipal Code §2.04.090 duly PASSED and ADOPTED this /7 day of 1998. Barbara Christensen, City Recorder SIGNED and APPROVED this L day of , 1998. Catherine M. Golden, Mayor Reviewed as to form: Paul Nolte, City Attorney Revised: 02113/98 (W budgetlewnomic\reso98) RESOLUTION NO. 43-" Z A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND, REITERATING ITS POLICY OF RELATING THE EXPENDITURES OF FUNDS FOR ECONOMIC DEVELOPMENT TO THE HOTEL/MOTEL (TRANSIENT OCCUPANCY) TAX. RECITALS: A. The maintenance and development of tourism is directly interrelated to the health of the entertainment, food, and lodging industries in Ashland. B. In 1979, a formula was implemented which allocated a percentage of the Hotel/Motel Tax revenues to promote and enhance tourism and other economic development strategies. C. The Citizens Budget Committee and City Council have determined that funding for economic development activities should henceforth be tied to the annual growth or reduction of current general fund revenues. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. ! That the Council hereby restates its recognition that the source of funding for economic development activities continues to be the Hotel/Motel Tax. SECTION 2. That the Council is committed to maintaining its historic support for economic development activities as a whole, but cannot limit the Citizens Budget Committee or future City Councils to specific appropriations for programs which have been funded in the past. The foregoing Resolution was READ by title only and DULY ADOPTED at a regular meeting of he City Council of the City of Ashland on the �v ` day/of 1993 . Nan E.' Franklin City Recorder SIGNED and APPROVED this /�i� day of , 1993. Catherine M. Golde Mayor PP u�App ved as to form: lte City Attorney (dAccwdev.Ree) City of Ashland Economic and Cultural Grant Allocation With Tourism Calculation 2007 Adopted Tourism Payment per month Hotel/Motel Tax Revenue(5%growth) $ 1,514,100 Per Resolution 2004-32 14.23% Minimum amount needed for Tourism $ 215,456 $ 215,456 1/3 of the proposed revenue $ 504,650 Additional Carryover from Prior Year* 5,000 Total amount budgeted $ 509,650 Amount Allocated: Per Resolution 2004-32(3%inflation) Chamber to promote tourism $ 82,845 $ 82,845 $ 6,904.00 Chamber for economic development 164,800 13,733.00 OSF to promote tourism 113,300 113,300 $ 9,441.67 $ 360,945 $ 196,145 $ 20,637 $ 9,441.67 Other Grants $ 148,705 $ 19,311 $ 215,456 Please note that the City Council determined that any grant monies not awarded or returned from a grantee are rebudgeted for expenditure in the next fiscal year. City of Ashland FY 2006.07 Economic and Cultural Development Grant Applicants Small Grants Tourism Allocation Adopted Tourism Allocated to Organization Requested Amount Amount Percentage Tourism Ashland Independent Film Festival $ 30,000 $ 16,000 $ 20,000 0.67 10,667 Rogue Valley Symphony 14,750 8,000 1,622 0.11 880 Nuwandart 5,500 1,500 1,100 0.20 300 Ashland Gallery Association 33,200 16,000 19,400 0.58 9,349 Community Works 10,000 2,500 - 0.00 - St.Clair Productions 6,000 4,000 2,400 0.40 1,600 Arts Council 12,500 5,000 7,500 0.60 3,000 Multi Cultural Association 10,000 10,000 - 0.00 - The Jefferson Center for Religion 10,000 - 7,000 0.70 Lilhia Arts Guild 15,431 9,000 3,086 0.20 1,800 Youth Symphony of Southern Oregon 5,500 5,000 - 0.00 - Second Street Musicians 3,250 - 2,000 0.62 Dancing People Company 7,000 - 700 0.10 - ScienceWorks 20,303 16,000 5,076 0.25 4,000 Konaway Nika Tillicum 5,000 5,000 2,500 0.50 2,500 Chautauqua Poets&Writers Board 5,000 5,000 - 0.00 - SOWAC 8,000 8,000 - 0.00 - Thrive 11,000 11,000 1,100 0.10 1,100 Children's Musical Theatre of Ashland 25,000 - 625 0.03 - ArtNow 1,500 1,205 300 0.20 241 Rogue Opera 12,000 7,000 - 0.00 - S. Oregon Repertory Singers 7,500 2,500 4,100 0.55 1,367 Peace House 9,766 - - 0.00 Oregon Stage Works 51,000 5,000 20,400 0.40 2,000 Siskiyou Singers 7,000 5,000 300 0.04 214 Ballet Rogue 10,000 6,000 5,000 0.50 3,000 $ 336,200 $ 148,705 $ 98,909 38,804 Amount Available $ 148,705 - Tourism Minimum $ 19,311 2/11/2007 5 r d N `� '-• �+ N • • O S O O S_S O o v°p' g ° O O S O. �° S y b _ LL Q ! pp f •- e N r h VI b a O • S • S • • ° b O OO O S A • p S • O • n a o ; O m b » O m m - LL a » � � N •., » » of .- vio roi v e�Nem �i mN my o do vi - �ri LLa N S Z S 0 0 0 o e . . . • . . . . eE N nj d N eN r ate] d r N(7 °f7 N N C] ly N d t° LL a N p » N a O °O O O • • O° . p . o° . • O N N � O . O . O o • � O � „ � � o S LLa N b n » LL Q e mM O » O ' 9 y » » qp . . . . . . L 6 O d S O O n . p . p . o° N e 'E LL a 0 c E3 E_ _ ^a°3 � x o °' � t L• �' 0 "n 3 v ac E . E m » ¢ EzLL 5 m > O x c° `m E E E o m .� iL LL S K ccoi y T m v E _ u E o f '65 a• Y C4 c ? F c = = m h a 0> d N w w J E E of E v y b x E d a Z y dE o c4 m a E N o ¢ y U ac c `o v o a rG z < ' o¢ ¢ a am mzo o 0 z d u 3 s` CITY OF Council Communication ASHLAND Discussion of Interim Library Funding Options Meeting Date: February 6, 2007 Primary Staff Contact: Martha Bennett Department: Administration bennettm @ashland.or.us Contributing a ents: Legal and Finance Secondary Staff Contact: Approval: Estimated mutes Statement: At the January 16 meeting,council directed staff to explore funding mechanisms to operate the Ashland Public Library which is scheduled to close on April 6 due to lack of county funding. Staff anticipates that it would cost approximately$1.2-$1.4 annually to operate the Ashland library. This would include building maintenance,personnel costs,access to the county's book catalog system and participation in Southern Oregon Library Information System(SOLIS). It is unclear if this amount would allow the library to operate with all the current programs in place and to deliver the current level of service or if this amount would allow for a basic,bare bones level of library service. A 1% income tax has been suggested as a means of funding the library as well as forming a special district based on Ashland school boundaries. Staff is not including these proposals in the list of possible funding mechanisms primarily due to timing. Attached is our summary research about a local income tax and a special district. It has also been suggested that an extension of the food and beverage tax be placed on the May ballot. The extension would allow for ongoing revenue stream for payment of the wastewater treatment plant and funds for open space and provide an opportunity to draw upon those future funds to finance the library on a temporary basis until a county-wide solution is identified. This option could be put into place fairly seamlessly and avoid closing the library for any length time. Staff has not had the opportunity' to fully explore this suggestion but it is the only suggestion that does not create new taxes and fees. Three of the options developed by staff include a property tax levy. It is important to note that even if the levy gains voter approval,the tax may not be imposed. A local funding method is meant to be a stop gap measure: a means of keeping the Ashland library open until a county solution is implemented. Staff Recommendation: Seek voter approval for any additional funds needed to support the library. Background: Jackson County Libraries are funded through the county general fund. Due to loss of federal funds,Jackson County anticipates closing all libraries on April 6, 2007. In November of 2006,a local option tax levy for Jackson County Library operations was defeated by voters county-wide though in Ashland the initiative passed by 70%. The county will budget$1.4 million for the upcoming year to cover library infrastructure, maintaining subscription,SOLIS and approximately six staff to manage the Medford main branch library for RCC. The county is exploring the possibility of allowing cities who are funding their local library to"opt in"for a fee to use these central services. Council Options: • See attached Interim Library Funding Solutions Attachments: • Interim Library Funding Solutions • Staff Summary on Income Tax and Special Library District 1 City of Ashland Library Funding February 6, 2007 Staff Summary on 1%Income Tax Income Tax collected by the State Based on conversations with the Oregon Department of Revenue there are a number of logistical issues that could take months to resolve including redesign of the income tax form, training ODR staff to respond to Ashland phone calls, legislative authority and more. ODR is confident these issues could eventually be resolved,but it would take a number of months. Further, the soonest a local income tax could be imposed is 2008 making funds available in 2009. ODR is meeting this week to begin to address these issues as a number of jurisdictions have requested information about imposing a local income tax. Income Tax collected by the City of Ashland Staff discussed the possibility of trying to collect and administer the tax locally. Again logistical issues could take months to resolve(additional staff, software etc.)making it very difficult to get the system up and running in a timely manner. Hypothetically, the city could use the business license list to impose a tax in 2007 making funding available in 2008,but it is unlikely we could have a working system in place to collect in 2007. hi either case,the question arose as to whom would actually be taxed: people who live and work in Ashland and people who work in Ashland but live elsewhere and people who live in Ashland but make their income outside of Ashland? This question will need to be answered if a personnel income tax is implemented. Because of the logistical issues staff is not recommending a personnel income tax as a possible solution at this time, however it may be a solution at a future date. Library Special District/Ashland School District Boundaries It has been suggested that a special Library District be formed using either the Ashland School District boundaries and/or extending the district to Talent. The Ashland School District boundaries extend beyond the city limits and the City cannot impose a tax on people who live outside Ashland. It is possible to form a Library District using the school district boundaries however new taxing districts can only be formed during even numbered years. It is possible that this could occur in 2008, a tax imposed in 2009 and funds available in 2010. 2 v o 'o y OV O �O o .� ... v ' —J, o y, O 0. 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O G A Q G R 7 bN9 T 669 > m is > R' O O L C G �... 'O £ �. m A o X a ° a ° c v `c 3 o v v o v £ o x E a p 'o ? rn p, ? d a q s E A ob C; ° N VI m ° lNO O X p 0 y m v v m � >'sN9 >'6�9 > �- o p L CL a, .. v v > Q .EF. .°'. QZ :°. to E o � 0 C N > aJrvz4 p � « ` C> C >. � � ale a m app > m ro >, t p � a .p th y OZ3Q . O 'co a cr rSn p' C •p `< O eni O N E' c N N - y 00 n. o w — O' cr w N Cn 'rJ D• C,. O`G n � to z; � s,.� o =. °' _°• :i o c c o 0 vi O °° a o c m ry y _ n S 4 Y 7 a a n O` c o El. 0 7K c o n ; ^ .7 y p' b •i n � w o m q 'o g 'C ? j n fD 0 .-� C O Y a c � n• E a n w o d d � � y � m b n n O F fD j Yp n C C b E h n `< X 7 0 fD � 7n7 y 7 �7 ro n ?• n OQ O • Y w n c n w � G C b n n n to - y b Q C 3 n e o N O Y � X' n y O C s m e 7 � P 6 w � z a A � P S F O CITY OF ASHLAND Council Communication A Resolution of the City of Ashland Authorizing an Interim Bond Financing Loan from the Special Public Works Fund by Entering into a Loan Contract with the Oregon Economic and Community Development Department for the Jefferson and Washington Street Improvements Project Number B06003 Meeting Date: February 6, 2007 Primary Staff Contact: Lee Tuneberg 1a° Department: Administrative Services E-mail: tuneberl(a ashland.or.us Contributing Departments: Secondary Staff Contact: Approval: Martha Benne n E-mail: Estimated Time: 30 minutes / Statement: Attached is a resolution authorizing staff to enter into an agreement with the Oregon Economic and Community Development Department to interim finance the improvements of Jefferson and Washington Streets as part of the Brammo Project. This financing will be replaced during FY 2007 or FY 2008 when OECDD issues tax-exempt bonds through the Oregon Bond Bank. Staff Recommendation: Staff recommends approval of this resolution. Background: Staff applied to the State for grants and loans to extend and improve Jefferson and Washington streets to support the construction of a facility to house the Brammo Motors manufacturing firm. Oregon Economic &Community Development Department has provided the City with forms for$900,000 to fund the project(B06003) with $500,000 being a loan and the rest an economic grant. Staff has obtained an agreement from Craig Bramscher that assures payment of the debt service on the loan. In order to move forward with the project's financing the City must provide OECDD with documents showing Council approval to enter into a promissory note, interim financing and eventually long term financing for the project. Interim financing is available at 3.77%for two and one half years to complete the project. Upon completion of the project actual costs not to exceed the $500,000 loan will be included in an Oregon Bond issue paying off the interim financing and establishing a payment schedule for the following ten years. Bramscher has signed an agreement to lien his property to guarantee payment of the loan and related costs. The financing of this project is a full faith and credit obligation of the city which means the City is pledging its resources including the ability to tax to pay the debt. Attached is a resolution providing authorization to sign the attached promissory note, contract, loan agreement and related documents with the State. �r, Related City Policies: None Council Options: Council could approve the resolution authorizing staff to proceed with the project. Council could take no action awaiting additional information. Council could reject the project and the proposed financing. Attachments: Resolution OECDD Financial Assistance Award Contract for Interim Financing including: Interim Financing Loan Agreement Special Conditions of Award Project Description Project Budget(Schedule) Description of the Loan (interim financing) OECDD Promissory Note OECDD August 16, 2006 Summary of Award Letter �r, RESOLUTION NO. 2007- A RESOLUTION OF THE CITY OF ASHLAND AUTHORIZING AN INTERIM BOND FINANCING LOAN FROM THE SPECIAL PUBLIC WORKS FUND BY ENTERING INTO A LOAN CONTRACT WITH THE OREGON ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT FOR THE JEFFERSON AND WASHINGTON STREET IMPROVEMENTS PROJECT NUMBER B06003. Recitals: The City Council of the City of Ashland, the governing body of the City of Ashland (the "Council"), finds: A. The City of Ashland ("City") is a "municipality" within the meaning of Oregon Revised Statutes 285B.410(1). B. Oregon Revised Statutes 2856.410 through 285B.479 (the "Act") authorize any municipality to file an application with the Oregon Economic and Community Development Department ("the Department") to obtain financial assistance from the Special Public Works Fund. C. The City has filed an application with the Department to obtain financial assistance for the extension and improvement of Jefferson ad Washington streets for the purpose of constructing buildings to house Brammo Motors manufacturing creating new jobs within the community. This project is an "infrastructure project" within the meaning of the Act. D. The Department has approved the City's application for financial assistance from the Special Public Works Fund pursuant to the Act. E. The City is required, as a prerequisite to the receipt of financial assistance from the Department, to enter into a Financial Assistance Award Contract for Interim Bond Financing, an Interim Bond Financing Loan Agreement and promissory notes with the Department in substantially the form attached hereto as Exhibits "A" and "B." F. The project described in Exhibit "A" to the Loan Agreement (the "Project") is a "community facilities project" within the meaning of the Act which is needed by and is in the public interest of the City. G. Notice relating to the City's consideration of the adoption of this Resolution was published at least once in a newspaper of general circulation within the City of Ashland. Such notice was published at least 7 days in advance of the adoption of this Resolution. 1-Resolution GAFINANCMDMINISTRATIONICOUNCIL COMMUNICATIONIFEBRUARY OTIFINALIRESOLUTION-SPWF INTERIM FINANCO The Council Resolves: 1. Interim Bond Financing Loan Authorized. The Council authorizes the Finance Director to execute the Financial Assistance Award Contract for Interim Bond Financing, Interim Bond Financing Loan Agreement, the Promissory Note attached as Exhibit "F" to the Loan Agreement (the "Financing Documents") and such other documents as may be required to obtain financial assistance including a loan from the Department on the condition that the principal amount of the loan from the Department to the City is not in excess of $500,000 and the interest rate is a percent deemed reasonable by the Finance Director and in the best interest of the City of Ashland. The proceeds of the loan from the Department shall be applied solely to the "Costs of the Project" as such term is defined in the Loan Agreement. 2. Security. Amounts payable by the City shall be payable from the sources described in Section 2.06 of the Loan Agreement and the Oregon Revised Statutes Section 2858.437(3) which include: a. any sources of funds that are legally available to the City, b. the revenues, if any, of the Project, including special assessment revenues, if any, and c. the City's general fund including the general revenues of the City, other funds which may be available for such purpose and a pledge of the City's taxing power within the restrictions of Article XI, Section 11 and 11 b of the Constitution of the State of Oregon. The obligation of the City to make payments pursuant to the Loan Agreement is a full faith and credit obligation of the City that is not subject to annual appropriation. 3. Additional Documents. The Finance Director is hereby authorized to enter into any agreements and to execute any documents or certificates which may be required to obtain financial assistance from the Department for the Project pursuant to the Financial Assistance Award Contract and the Loan Agreement. 4. Tax-Exempt Status. The City covenants not to take any action or omit to take any action if the taking or omission would cause interest paid by the City pursuant to the Loan Agreement not to qualify for the exclusion from gross income provided by Section 103(a) of the Internal Revenue Code of 1986, as amended. The Finance Director of the City may enter into covenants on behalf of the City to protect the tax-exempt status of the interest paid by the City pursuant to the Loan Agreement and may execute any Tax Certificate, Internal Revenue Service forms or other documents as shall be required by the Department or their bond counsel to protect the tax-exempt status of such interest. 5. Reimbursement Bonds. The City may reimburse expenditures for the Project with amounts received from the Department pursuant to the Financing Documents. Additionally, the City understands that the Department may fund or reimburse itself for the funding of amounts paid to the City pursuant to the Financing Documents with the proceeds of bonds issued by the State of Oregon pursuant to the Act. This Resolution shall constitute "official intent" within the meaning of Section 1.150-2 of the Income Tax 2-Resolution G:IFINANCEIADMINISTRATIONICOUNCIL COMMUNICATIONIFEBRUARY 071FINALIRESOLUTION-SPWF INTERIM FINANCR Regulations promulgated by the United States Department of the Treasury with respect to the funding or the reimbursement for the funding of the costs of the Project with the proceeds of the City's loan pursuant to the Financing Documents and with the proceeds of any bonds issued by the State of Oregon pursuant to the Act. 6. Effective Date of Resolution. In order that there be no delay in financing the Project as provided in this Resolution, this Resolution shall be in force and effect from and after passage by the Council. This resolution was read by title only in accordance with Ashland Municipal Code §2.04.090 duly PASSED and ADOPTED this day of , 2007. Barbara Christensen, City Recorder SIGNED and APPROVED this day of , 2007. John W. Morrison, Mayor Reviewed as to form: Michael W. Franell, City Attorney i $-Resolution G:IFINANCEIADMINISTRATIONICOUNCIL COMMUNICATIONIFEBRUARY 071FINALIRESOLUTION-SPWF INTERIM FINANCIP STATE OF OREGON SPECIAL PUBLIC WORKS FUND FINANCIAL ASSISTANCE AWARD CONTRACT FOR INTERIM FINANCING This Contract is made and entered into as of ' 2006 by and between the STATE OF OREGON, ACTING BY AND THROUGH ITS ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT("State") and City of Ashland ("Borrower")The reference number of this Contract is B06003. SECTION I CERTAIN DEFINITIONS As used in this Contract,the following terms shall have the meanings set forth below,unless the context requires otherwise: "Act" means ORS 285B.410 through 285B.482, as amended. "Contract"means this contract between the State and the Borrower, including any exhibits, schedules and attachments thereto, as amended from time to time. "Costs of the Project"means all eligible costs of acquiring and constructing the Project, including any financing costs properly allocable to the Project, as set out in the approved Project Budget in Exhibit C to the Loan Agreement. "Default"means an event which with notice or lapse of time or both would become an Event of Default as set out in Section 6 hereof. "Event of Default" means any of the events described in Sections 6(A) through 6(D) of this Contract. "Grant"has the meaning ascribed thereto in Section 2(B) of this Contract. "Loan"has the meaning ascribed thereto in Section 2(A) of this Contract. "Loan Agreement" means that certain interim financing loan agreement, substantially in the form of Exhibit 1 hereto, entered into between the State and the Borrower, as of the date hereof, as such agreement may from time to time be amended and/or restated. "Note" means that certain promissory note, substantially in the form of Exhibit F to the Loan Agreement, executed by the Borrower in favor of the State, as it may from time to time be amended, extended, renewed or restated. "Project" has the meaning ascribed thereto in the Loan Agreement and described in Exhibit B of the Loan Agreement. "Project Completion Date"means the date on which the Borrower has in fact completed the construction of the Project, as described in Section 3.02(d) of the Loan Agreement. "Special Public Works Fund" or "Fund" means the Special Public Works Fund created by ORS 285B.455(1). SECTION 2 FINANCIAL AWARD A. Amount of Loan. Subject to the terms and conditions of this Contract and the Loan Agreement, the State agrees to loan and disburse to Borrower,and Borrower agrees to borrow and accept from State,a non-revolving loan in the maximum aggregate principal amount of$500,000 (the "Loan"). Contract and General SeMCes/806003 ArInand Contrad d Page I of 7 B. Amount of Grant. Subject to the terms and conditions of the Contract,the State agrees to provide a grant to the Borrower in the amount of$400,000 (the "Grant'). C. Availability of Funds. The Loan and Grant set out in Section 2(A)and Section 2(B)above are subject to the availability of moneys in the Special Public Works Fund. `- D. Change in the Act. The State shall not be obligated to provide the Grant or the Loan or make any disbursements under the Loan Agreement if,on or prior to the time the Borrower satisfies all conditions for a disbursement of the Grant or the Loan under the Loan Agreement, there has been a change in the Act so that the Project is no longer eligible for the financial assistance authorized by this Contract. E. Disbursements. The Borrower must submit disbursement requests for the Grant or the Loan on a disbursement request form substantially in the form of Exhibit E of the Loan Agreement. The State may, in its sole discretion,make disbursements requested by Borrower first under the Grant,then under the Loan, but in no event will the Grant disbursement exceed 85% of the Costs of the Project. SECTION 3 USE OF AWARD The use of the Grant and the Loan is expressly limited to the Project activities described in Exhibit B of the Loan Agreement. The use of these funds is also expressly subject to the terms and conditions set out in Exhibit A to the Loan Agreement. SECTION 4 REPRESENTATIONS OF THE BORROWER The Borrower represents and warrants to the State that: A. Costs of the Project. A reasonable estimate of the Costs of the Project is $900,000. B. [Reserved] C. Binding Obligation- This Contract has been duly authorized, executed and delivered by the Borrower and constitutes the legal,valid and binding obligation of the Borrower, enforceable in accordance with its terms. SECTION 5 COVENANTS OF BORROWER The Borrower covenants as follows and understands that the requirements of the covenants may only be waived or amended by a written instrument executed by the State: A. Compliance with Laws. The Borrower will comply with the requirements of all applicable laws,rules, regulations and orders of any governmental authority that relate to the construction of the Project and the operation of any utility system of which the Project is a component. In particular,but without limitation, the Borrower shall comply with the following, as applicable: I. State procurement regulations found in the Oregon Public Contracting Code,ORS Chapters 279A, 279B and 279C. 2. State labor standards and wage rates found in ORS Chapter 279C. 3. State municipal finance and audit regulations found in ORS Chapter 297. 4. State regulations regarding industrial accident protection found in ORS Chapter 656. 5. State conflict of interest requirements for public contracts. Cod4acl and Geneml Sa,.WB06003 aanland CdntraG.doc Page 2 of 6. State environmental laws and regulations enacted by agencies listed in Exhibit 2 hereto. 7. Oregon Administrative Rules, Chapter 123, Division 42, as amended from time to time at the discretion of the State. 8. State municipal bonding requirements found in the Act and in ORS Chapters 280,284,286,287 and 288. B. Drawings. The Borrower shall obtain as-built drawings for all construction projects with the proceeds of the Loan or the Grant. The Borrower shall obtain certification of completion per the as-built drawings from the Project engineer or architect, as applicable. C. Operation and Maintenance of the Project. By the Project Completion Date, the Borrower will have a' program, documented to the satisfaction of the State, for the on-going maintenance, operation and replacement,at Borrower's sole expense,of the public works service system,if any,of which the Project is a part. This program should include a plan for generating revenues sufficient to assure the operation, maintenance and replacement of the public works system,if any,of which the Project is a part during the service life of the Project. D. Signs and Notifications. Borrower shall post a sign at the Project site or, if more than one site is included in the Project, at a site visible to the general public acknowledging the participation of the State. The sign shall be installed prior to construction and shall be maintained for the duration of the construction period. The State shall provide the sign to Borrower upon request. E. Insurance. Except as may be provided in Exhibit A to the Loan Agreement, in the event the Project,or any portion thereof, is destroyed and the Project is insured, any insurance proceeds shall be paid to the State and shall be applied to prepay the outstanding balance of the Loan in accordance with Section 2.04 of the Loan Agreement unless the State agrees in writing that the insurance proceeds shall be used to rebuild the Project. F. Creation of Project Account. The Borrower shall establish and maintain a segregated Project account. The Loan proceeds and Grant proceeds(as and when the Loan and Grant proceeds are disbursed by the State to the Borrower) shall be deposited in this segregated Project account. Earnings on this account shall be credited to this account. Moneys in this account shall only be used to pay the Costs of the Project. G. Indemnity. To the fullest extent permitted by law, the Borrower shall indemnify the State and its officers, employees and agents from and against all claims, suits, actions, losses, damages, liabilities, costs and expenses of any nature whatsoever resulting from,arising out of,or relating to the activities of Borrower or its officers, employees, contractors, or agents under or related to this Contract or the Project. H. Sales,Leases and Encumbrances. Borrower may not sell,lease,exchange,transfer or otherwise dispose of any property constituting a part of the Project or any interest therein or any system, the revenues of which are pledged for payment of amounts due under the Loan Documents (as defined in the Loan Agreement),unless it is worn out,obsolete or,in the reasonable business judgment of the Borrower,no longer useful in the operation of the Project, except if(i) the State consents thereto in writing upon ninety(90)days' prior written notice to the State and(ii)Borrower assigns the Loan Agreement and the other Loan Documents pursuant to Article V of the Loan Agreement. Except as may be provided in the Exhibit A to the Loan Agreement, proceeds of such sale, lease, exchange,transfer or other disposition which are not used to replace property-that is part of the Project Contract and General sermcea/B06003 Mniana cunaacLdm Page 3 of 7 shall be paid to the State and shall be applied to prepay the outstanding balance of the Loan in accordance with Section 2.04 of the Loan Agreement. 1. Condemnation Proceeds. Except as may be provided in Exhibit A of the Loan Agreement, in the event the Project,or any portion thereof is condemned, any condemnation proceeds shall be paid to the State and shall be applied to prepay the outstanding balance of the Loan in accordance with Section 2.04 of the Loan Agreement. J. Professional Services. Borrower shall demonstrate that any service provider retained for their professional expertise is certified, licensed or registered, as applicable in the State of Oregon, for their specialty. K. Economic Benefit Data. The State may request that the Borrower submit specific requested data on the economic development benefits of the Project, from the date hereof until six (6)years after the Project Completion Date. Upon such request by the State, the Borrower shall, at the Borrower's expense, prepare and file the requested data within the time specified in the request. Data shall document specific requested information such as any new direct permanent or retained jobs resulting from the Project and other information to evaluate the success and economic impact of the Project. L. Job Creation and Retention or Grant Repayment. In order to retain the Grant, Borrower will create and maintain or cause to be created and maintained at the Brammo Motorsports,LLC("Brammo")facilities located in Ashland, Oregon a minimum of 80 new full-time equivalent jobs for at least one year, such one-year period to begin no earlier than July 1,2008 and end no later than June 30, 2011 (such one year period to be referred to below as the"Retention Period"). If Borrower does not maintain or cause to be maintained at the Brammo facilities at least 80 full-time equivalent jobs for the Retention Period, Borrower shall repay to State Grant moneys equal to $5,000 multiplied by the difference obtained by subtracting the total number of jobs Borrower did create and maintain or cause to be created and maintained for the Retention Period from 80;provided,however,that if the full amount of the Grant was not disbursed to Borrower, then the repayment obligation of Borrower under this Section 5.L, if any, shall be reduced(but not to an amount less than zero)by the portion of the Grant that was not disbursed. For purposes of this Agreement,one(1) full-time equivalentjob is equal to 1,820 hours worked during the Retention Period. "Hours worked"for an employee means all hours that the employee worked,if the employee is paid for those hours. "Hours worked" does not include vacation time, sick leave or any other paid time where no work is performed. State intends to obtain the number of hours worked by employees of Brammo at its Ashland, Oregon facilities during the Retention Period through review of information obtained from the Oregon Employment Department. If State is not able to obtain information from the Oregon Employment Department to determine the number of hours worked by Brammo's employees at its Ashland,Oregon facilities during the Retention Period,Borrower shall provide comparable information,as the State may reasonably request, for each such employee in order to determine the actual number of full-time equivalent jobs at Brammo's Ashland, Oregon facilities during the Retention Period. M. First Source Agreement. Borrower shall enter or shall cause Brammo to enter into a First Source Agreement, as outlined in OAR Chapter 123, Division 70, with the Oregon Employment Department, 119 N. Oakdale,Medford,OR 97504. The First Source Agreement shall be in effect while any amount remains unpaid under the Note. N. Minority. Women & Emerging Small Business. ORS 200.090 requires all public agencies to "aggressively pursue a policy of providing opportunities for available contracts to emerging small businesses..." The Oregon Economic and Community Development Department encourages Borrower, Contact and General SeMCes1605005 Ashland Contract.doa Page 4 of 7 in any contracting activities, to follow good faith efforts in ORS 200.045, available at http://www.leg.state.or.us/ors/200.html. Additional resources are provided by the Governor's Advocate for Minority, Women&Emerging Small Business at http://e og v oregon.gov/Gov/MWESB/index.shtml. Also,the Office of Minority,Women,and Emerging Small Business at the Department of Consumer and Business Services maintains a list of certified firms and can answer questions. Search for certified MWESB firms on the web at: http://imd]O.cbs-state.or.us/ex/dir/omwesb/. SECTION 6 DEFAULT Time is of the essence of this Contract. If any of the following Events of Default occurs and is continuing, namely: A. The Borrower fails to proceed expeditiously with,or to complete,the Project or any segment or phase of the Project in accordance with the plans and schedules approved by the State; or B. Any representation with respect to current or historical information made to the State herein or in any other pertinent documents,certificates and reports relied upon by the State in gauging the progress of the Project,compliance with the requirements of the Act or performance of duties by the Borrower is untrue in any material respect; or C. Except as provided in B or D of this Section, the Borrower fails to perform or observe any of its covenants or agreements contained herein and fails to correct such deficiencies within thirty(30)days of notice from the State of such deficiencies, or such longer period as the State may authorize in its sole discretion; or D. The occurrence of an Event of Default under the Loan Agreement; thereupon, and in each such case, the State, upon notice to the Borrower, may pursue any remedy legally available, including but not limited to the remedies set forth in Section 7. SECTION 7 REMEDIES Upon the occurrence of an Event of Default under this Contract, the State may pursue any or all of the remedies set forth herein or in the Loan Agreement or Note and any other remedies available at law or in equity. Such remedies include,but are not limited to,termination of the State's commitment and obligation to make the Grant or the Loan or disbursements under Contract and Loan Agreement, acceleration of the Loan, repayment of the Grant, declaration of the Borrower's ineligibility to receive future Lottery funded awards and the withholding pursuant to ORS 285B.449 of other State funds due the Borrower. The remedies provided herein are cumulative and not exclusive of any remedies provided by law. SECTION 8 MISCELLANEOUS A. No Implied Waiver,Cumulative Remedies. No failure on the part of the State to exercise,and no delay in exercising, any right, power, or privilege under this Contract shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power, or privilege under this Contract preclude any other or further exercise thereof or the exercise of any other such right, power or privilege. i conead and General semwe B05003 Ashland conVaddim Page 5 of r B. Notices. All notices to or upon the parties hereto shall be in writing and shall be deemed to have been duly given or made when delivered by hand or deposited in the mails,postage prepaid,addressed to the party to which such notice is required or permitted to be given or made at the addresses set forth below or at such other address of which such party shall have notified in writing the other party hereto. If to the State: Operations Manager, Community Development Division Economic and Community Development Department 775 Summer Street NE, Suite 200 Salem, OR 97301-1280 If to the Borrower: Administrative Services and Finance Director City of Ashland 20 East Main Street Ashland, OR 97520 Any notice so addressed and mailed shall be effective five(5)days after mailing. Any notice given by personal delivery shall be effective when actually delivered. C. Severability. If any term or condition of this Contract is declared by a court of competent jurisdiction to be illegal or in conflict with any law, the validity of the remaining terms and conditions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular term or condition held to be invalid. D. No Construction against Drafter. The terms of this Contract shall not be construed against either party as the drafter hereof. E. Successors and Assigns; No Third Party Beneficiary. (1) This Agreement shall be binding upon and inure to the benefit of State, Borrower, and their respective successors and assigns, except that Borrower may not assign or transfer its rights or obligations hereunder or any interest herein without the prior consent in writing of State. (2)Nothing in this Agreement gives,is intended to give,or shall be construed to give or provide any benefit or right,whether directly,indirectly or otherwise,to any third persons(including but not limited to Brammo) any rights and benefits with respect to such obligations greater than those enjoyed by the general public. F. Applicable Law. This Contract shall be governed by and construed in accordance with the laws of the State of Oregon, including the Act,without regard to principles of conflicts of law. Any claim, action, suit or proceeding (collectively, "Claim") between the State (and/or any agency or department of the State of Oregon) and the Borrower that arises from or relates to this Contract shall be brought and conducted solely and exclusively within the Circuit Court of Marion County for the State of Oregon (unless Oregon law requires that it be brought and conducted in another county);provided,however,if Claim must be brought in a federal forum,then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon. In no event shall this Section be construed as a waiver by the State of Oregon of any form of defense or immunity, whether it is sovereign immunity, governmental immunity, immunity based on the Eleventh Amendment to the Constitution of the United States or otherwise, from any Claim or from the jurisdiction of any court. Gannett and General 5emeesl606003 Ashland Contretl ne Page 6 of 7 G. Merger; Amendments. This Contract, including all Exhibits (which are by this reference incorporated herein),constitutes the entire agreement between the parties on the subject matter hereof. There are no understandings, agreements or representations, oral or written, not specified herein regarding this Contract. The terms of this Contract, including timeframes for Project completion,will not be waived, altered,modified,supplemented,or amended in any manner except by written instrument signed by the parties (or, in the case of a waiver, by the party against whom the waiver is being asserted). H. Execution in Counterparts. This Contract may be executed in several counterparts,each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the parties hereto have caused this Contract to be duly executed by their respective representatives. The Borrower, by the signature below of its authorized representative,hereby acknowledges that it has read this Contract, understands it, and agrees to be bound by its terms and conditions. Or / 99 STATE OF OREGON CITY OF ASHLAND acting by and through its Economic and Community Development Department By: By: Laird Bryan, Operations Manager The Honorable John Morrison Community Development Division Mayor of Ashland Date: Date: APPROVED AS TO LEGAL SUFFICIENCY IN ACCORDANCE WITH ORS 291.047: /s/ Lynn T. Nagasako (as per email October 31, 2006) Lynn T. Nagasako, Sr. Assistant Attorney General Date: October 31, 2006 Exhibit 1: Loan Agreement Exhibit 2: Environmental and Natural Resource Agencies Conaad and General5enicaslB W3 Ashland Conaaddlac Page 7 of 7 Interim Financing Loan Agreement, Exhibit 1 Page I of 17 INTERIM FINANCING LOAN AGREEMENT between STATE OF OREGON acting by and through its ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT and CITY OFASHLAND ConVacl and General Semnc 306003 A Mandl CodVacl.dm Interim Financing Loan Agreement, Exhibit 1 Page 2 of 17 TABLE OF CONTENTS Pape ARTICLE I DEFINITIONS SECTION1.01. Definitions..........................................................................................................................4 SECTION1.02. General Rules.....................................................................................................................5 ARTICLE II LOAN TO BORROWER SECTION 2.01. Loan; Disbursements; Use of Proceeds...............................................................................5 SECTION2.02. Loan Payment.....................................................................................................................6 SECTION 2.03. Unconditional Obligations .................................................................................................6 SECTION 2.04. Loan Prepayments..............................................................................................................6 SECTION2.05. [Reserved] ..........................................................................................................................6 SECTION 2.06. Sources of Payment of Borrower's Obl igations.................................................................7 SECTION 2.07. Disclaimer of Warranties; Limitation of Liability; Indemnificat ion..................................7 ARTICLE III REPRESENTATIONS, WARRANTIES AND COVENANTS OF BORROWER SECTION 3.01. Representations and Warranties of Borrower....................................................................8 SECTION 3.02. Particular Covenants of the Borrower..............................................................................10 ARTICLE IV CONDITIONS PRECEDENT SECTION4.01. Loan Closing....................................................................................................................13 SECTION 4.02. Conditions to Disbursements ...........................................................................................13 ARTICLE V ASSIGNMENT SECTION5.01. [Reserved] ........................................................................................................................14 SECTION 5.02. Assignment by Borrower .................................................................................................14 ConVaa end General SemwslBN003 Fsnland Conbect doe Interim Financing Loan Agreement, Exhibit 1 Page 3 of 17 ARTICLE VI DEFAULTS AND REMEDIES SECTION6.01. Event of Default...............................................................................................................14 SECTION 6.02. Notice of Default..............................................................................................................15 SECTION 6.03. Remedies on Default........................................................................................................15 SECTION 6.04. Attorney's Fees and Other Expenses ...............................................................................15 SECTION 6.05. Application of Moneys.....................................................................................................15 SECTION 6.06. No Remedy Exclusive; Waiver; Notice ...........................................................................15 SECTION 6.07. Default by the State..........................................................................................................16 ARTICLE VII MISCELLANEOUS SECTION7.01. Notices..............................................................................................................................16 SECTION7.02. Binding Effect..................................................................................................................16 SECTION7.03. Severability ......................................................................................................................16 SECTION 7.04. Amendments, Supplements and Modifications................................................................16 SECTION 7.05. Execution in Counterparts................................................................................................16 SECTION 7.06. No Construction against Drafter......................................................................................16 SECTION7.07. Applicable Law................................................................................................................16 SECTION 7.08. Consents and Approvals...................................................................................................17 SECTION 7.09. Merger; No Waiver..........................................................................................................17 EXHIBITS Exhibit A: Special Conditions of Award Exhibit B: Project Description Exhibit C: Project Budget Exhibit D: Description of Loan Exhibit E: Form of Disbursement Request Exhibit F: Form of Promissory Note Exhibit G: Form of Opinion of Borrower's Counsel Contrad and General SeMcesIB06003 Ashland Contract doe Interim Financing Loan Agreement, Exhibit 1 Page 4 of 17 THIS INTERIM FINANCING LOAN AGREEMENT, is made and entered into as of XXXXXXXXXXXXXX, XXXX, by and between the STATE OF OREGON, ACTING BY AND THROUGH ITS ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT(the"State"),and the Borrower (as defined below). ARTICLE 1 DEFINITIONS SECTION 1.01. Definitions. The following terms as used in this Loan Agreement shall, unless the context clearly requires otherwise, have the meanings assigned to them below: "Act" means ORS 28513.410 through 285B.482, as amended. "Authorized Officer(s)"means,in the case of the Borrower,the person(s)whose name(s)and/or title(s) is set forth in Exhibit D hereto or such other person or persons authorized pursuant to a resolution,an order, ordinance or other official action of the governing body of the Borrower to act as an authorized officer(s)of the Borrower to perform any act or execute any document relating to the Loan or this Loan Agreement and whose name(s) and/or title(s)is furnished in writing to the State. "Borrower"means the Municipality that is a party to this Loan Agreement and is described on Exhibit D hereto, and its successors and assigns. "Business Day" means any day other than a Saturday, Sunday or legal holiday or a day on which banking institutions in Salem, Oregon are closed. "Contract" means the financial assistance award contract for interim financing dated as of the date hereof between the State and Borrower, to which the form of this Loan Agreement is attached as Exhibit I, as amended from time to time. "Costs of the Project" means those costs that are (a) reasonable, necessary and directly related to the Project, including any financing costs properly allocable to the Project and preliminary costs such as engineering and architectural reports,studies,surveys,permits,soil tests,designs,plans,working drawings and specifications that are necessary-for the construction of the Project, and (b) permitted by generally accepted accounting principles to be costs of such Project. "Counsel" means an attorney at law or firm of attorneys at law (who may be, without limitation, of counsel to, or an employee of, the State or the Borrower) duly admitted to practice law before the highest court of any state. "Disbursement Request" means a requisition executed by the Borrower requesting a draw under this Loan Agreement in substantially the form of Exhibit E hereto. "Event of Default" means any occurrence or event specified in Section 6.01 hereof. "Loan" means the non-revolving loan to be made by the State to the Borrower to provide interim financing for a portion of the Costs of the Project pursuant to this Loan Agreement. "Loan Agreement"means this interim financing loan agreement, including any exhibits, schedules or attachments hereto(which are by this reference incorporated herein),as it may be supplemented,modified or amended from time to time in accordance with the terms hereof. "Loan Closing Date"means the date on which all conditions to the Loan closing have been satisfied by Borrower (or waived by the State) and the Loan proceeds are available to disburse to the Borrower in accordance with Section 2.01(b) hereof. Conaacl and General SeMceer1306003 Ashland Contract am Interim Financing Loan Agreement, Exhibit 1 Page 5 of 17 "Loan Closing Deadline" means the date, as set forth in Exhibit D hereof, by which all conditions precedent to Loan closing must be satisfied. "Loan Documents"means the Loan Agreement,Note,and any agreements, instrument and certificates required to be executed and delivered hereunder. "Maturity Date" means the date by which the outstanding balance of the Loan must be repaid, as determined in accordance with Exhibit D of the Loan Agreement. "Municipality" means any entity described in ORS 285B.410(7). "Note"means that certain promissory note of the Borrower,substantially in the form of Exhibit F hereto, executed by the Borrower in favor of the State,as it may from time to time be amended,extended,renewed and/or restated. "Project" has the meaning ascribed thereto in the Loan Agreement and described in Exhibit B hereto. "Project Completion Date"means the date on which the Borrower completes construction of the Project as described in Section 3.02(d). "Refunding Proceeds" means the proceeds of any subsequent short- or long-term financing issued to refund the Loan or to finance the Project. "Special Public Works Fund" or"Fund" means the fund created by ORS 285B.455(1). "System"means the utility or wastewater system or systems, if any,of the Borrower which includes the Project or components of the Project, as such system or systems may be modified or expanded from time to time. References in this Loan Agreement to the Borrower's"System"shall be ignored to the extent that the Project is not a component of a utility or wastewater system or systems. SECTION 1.02. General Rules. Except where the context otherwise requires, words importing the singular number shall include the plural number and vice versa,and words importing persons shall include firms, associations, corporations, partnerships, agencies and districts. Words importing one gender shall include any other gender. ARTICLE 11 LOAN TO BORROWER SECTION 2.01. Loan; Disbursements; Use of Proceeds. (a) Loan. Subject to the terms and conditions hereof,in particular Sections 4.01 and 4.02 hereof,the State hereby agrees to make and disburse to the Borrower,and the Borrower agrees to borrow and accept from the State, a non-revolving Loan in an aggregate principal amount not to exceed the lesser of(1) the maximum principal amount of the Loan set forth in Exhibit D hereto or(2) the Costs of the Project minus the amount of the Grant (as defined in the Contract). (b) Disbursements. Subject to Sections 4.01 and 4.02 hereof, the proceeds of the Loan shall be disbursed to the Borrower from time to time on an expense reimbursement or cost incurred basis upon receipt by the State of a Disbursement Request. (c) Use of Proceeds. The Borrower shall use the proceeds of the Loan strictly in accordance with Section 3.02(a) hereof and subject to and in compliance with Exhibit B and Exhibit C hereof. Convect and General Senacesl906003 Ashland Contrad.Eoc Interim Financing Loan Agreement, Exhibit l Page 6 of 17 SECTION 2.02. Loan Payment. The Borrower agrees to repay the Loan and all amounts due under the Note or any of the Loan Documents in accordance with the terms hereof and thereof. Unless earlier repayment is received hereunder or under the terms of the Note,the entire outstanding principal balance and all accrued unpaid interest shall be due and payable in full on the Maturity Date. SECTION 2.03. Unconditional Obligations. The provisions of the Loan Agreement shall constitute a contract with the State and shall be enforceable by the State. Payments required under the Loan Documents are payable from the sources of repayment described in Section 2.06 hereof, and the obligation of the Borrower to make all payments required under the Loan Documents and the obligation to perform and observe the other duties, covenants, obligations and agreements on its part to be performed or observed contained therein shall be absolute and unconditional. Payments hereunder and under any of the other Loan Documents shall not be abated, rebated, set-off, reduced, abrogated, terminated, waived, diminished, postponed or otherwise modified in any manner or to any extent whatsoever, or any payments under this Loan Agreement or Note remain unpaid, regardless of any contingency, act of God, event or cause whatsoever, including (without limitation) any acts or circumstances that may constitute failure of consideration,eviction or constructive eviction,the taking by eminent domain or destruction of or damage to the Project,commercial frustration of the purpose,any change in the laws of the United States of America or of the State of Oregon or any political subdivision of either or in the rules or regulations of any governmental authority,any failure of the State to perform and observe any agreement,whether express or implied, or any duty, liability, or obligation arising out of or connected with the Project or this Loan Agreement or any rights of set off, recoupment, abatement or counterclaim that the Borrower might otherwise have against the State or any other party or parties;provided,however,that payments hereunder shall not constitute a waiver of any such rights. SECTION 2.04. Loan Prepayments. (a) Mandatory Prepayment. The Borrower shall prepay the outstanding balance of the Loan,including any unpaid accrued interest, upon the occurrence of any of the following events: (i) destruction of all or a substantial portion of the Project; or (ii) issuance of any subsequent short or long term financing obligation for the Project or to refund the Loan, including State bonds issued in part for the financing and/or refinancing of the Project; or (iii) condemnation of the Project, or any portion thereof, to the extent of the condemnation proceeds; or (iv) as required by Section 3.02(e); or (v) as otherwise required by any of the Loan Documents. (b) Optional Prepayment Prior to the Maturity Date. The Borrower may prepay all or any portion of the outstanding balance of the Loan on any Business Day. (c) General. Loan payments or prepayments shall be applied first to any expenses of the State in connection with Loan payments and prepayment, then to accrued interest on and finally to principal. SECTION 2.05. [Reserved] Gonead and General SemC /B06003 Ashland ContraU.doc Interim Financing Loan Agreement, Exhibit I Page 7 of 17 SECTION 2.06. Sources of Payment of Borrower's Obligations. (a) The State and the Borrower agree that the amounts payable by the Borrower under this Loan Agreement and any of the other Loan Documents,including,without limitation,the amounts payable by the Borrower pursuant to Sections 2.02,2.04,2.07 and 6.04 hereof, are payable from the sources of repayment described in paragraph (b) of this Section 2.06; provided however that nothing herein shall be deemed to prevent the Borrower from paying the amounts payable under this Loan Agreement and the other Loan Documents from any other legally available source. (b)The amounts payable by the Borrower under this Loan Agreement and the other Loan Documents are payable from sources of repayment described in the Act and the Refunding Proceeds and other sources identified in Exhibit A hereto; provided however that nothing herein shall be deemed to prevent the Borrower from paying the amounts payable under this Agreement and the other Loan Documents from any other legally available source. Funds from such sources shall be applied to the punctual payment of the principal of and the interest on the Loan and all other amounts due under this Agreement and other Loan Documents according to their respective terms. The amounts payable by the Borrower under this Loan Agreement and the other Loan Documents are also payable from all legally available general funds in the Borrower's general fund. (c)The Borrower expressly acknowledges that if the Borrower defaults on payments due under this Loan Agreement or any of the other Loan Documents, the State of Oregon, pursuant to ORS 285B.449, may withhold all or a portion of any amounts otherwise due to the Borrower and apply said amounts to payments due under this Loan Agreement and the other Loan Documents to the fullest extent permitted by law; provided however that the provisions of the Loan Agreement and the Note are not to be construed in a way that would cause the obligations of the Borrower thereunder to constitute debt which violates Section 10, Article XI of the Oregon Constitution. SECTION 2.07. Disclaimer of Warranties; Limitation of Liability; Indemnification. The Borrower acknowledges and agrees that: (a) the State makes no warranty or representation, either express or implied, as to the value, design, condition, merchantability or fitness for particular purpose or fitness for any use of the Project or any portions thereof or any other warranty or representation with respect thereto; (b) in no event shall the State or its agents be liable or responsible for any direct, indirect, incidental, special or consequential damages in connection with or arising out of this Loan Agreement,any of the other Loan Documents or the Project or the existence, furnishing, functioning or use of the Project or any item or products or services provided for in this Loan Agreement; and (c)to the extent authorized by law,the Borrower shall(subject to ORS Chapter 180)defend,indemnify, save and hold harmless the State and its officers,employees and agents from and against any and all claims, suits, actions, proceedings, losses, damages, liability and court awards including costs, expenses, and attorney fees incurred as a result of any act or omission by the Borrower, or its employees, agents or subcontractors pursuant to the terms of this Loan Agreement or any of the other Loan Documents,provided, however,that the provisions of this paragraph(c)are not intended to and shall not be construed as a waiver of any defense or limitation on damages provided for under and pursuant to Chapter 30 of the Oregon Revised Statutes or under the laws of the United States or other laws of the State of Oregon. Cwn ad and Genemi Semra 606W3 Ashland Gonb.Mdm Interim Financing Loan Agreement, Exhibit I Page 8 of 17 ARTICLE III REPRESENTATIONS,WARRANTIES AND COVENANTS OF BORROWER SECTION 3.01. Representations and Warranties of Borrower. The Borrower represents and warrants for the benefit of the State as follows: (a) Organization and Authority. (i)The Borrower is a Municipality. (ii)The Borrower has full legal right and authority and all necessary licenses and permits required as of the date hereof to own, operate and maintain the Project,other than licenses and permits relating to the Project which the Borrower expects to receive in the ordinary course of business, to carry on its activities relating thereto,to execute and deliver this Loan Agreement,to undertake and complete the Project,and to carry out and consummate all transactions contemplated by this Loan Agreement and the other Loan Documents. (iii) The Project is a project which the Borrower may undertake pursuant to Oregon law and for which the Borrower is authorized by law to borrow money. (iv)The proceedings of the Borrower's governing members and voters, if necessary,approving this Loan Agreement and the other Loan Documents and authorizing the execution and delivery of this Loan Agreement and other Loan Documents on behalf of the Borrower, and authorizing the Borrower to undertake and complete the Project have been duly and lawfully adopted in accordance with the laws of Oregon,and the actions of such proceedings were duly approved and published, if necessary, in accordance with applicable Oregon law, at a meeting or meetings which were duly called pursuant to necessary public notice and held in accordance with applicable Oregon law,and at which quorums were present and acting throughout. (v) This Loan Agreement and all other Loan Documents required hereunder to be executed by Borrower have been duly authorized and executed and delivered by an Authorized Officer of the Borrower;and,assuming that the State has all the requisite power and authority to authorize,execute and deliver, and has duly authorized, executed and delivered, this Loan Agreement and the Loan Documents required hereunder to be executed by the State, this Loan Agreement and other Loan Documents required hereunder to be executed by the Borrower constitute the legal, valid and binding obligation of the Borrower in accordance with their terms. (vi)Borrower's Contract and the Loan Agreement have been authorized by an ordinance, order or resolution of the Borrower which was adopted in accordance with applicable law and the Borrower's requirements for filing public notices and authorizing debt. (b) Full Disclosure. There is no fact that the Borrower has not disclosed to the State in writing on the Borrower's application for the Loan or otherwise that materially adversely affects the properties,activities, prospects or condition(financial or otherwise)of the Borrower or the Project,or the ability of the Borrower to make all payments required by the Loan Documents and otherwise observe and perform its duties, covenants,obligations and agreements under this Loan Agreement and the other Loan Documents. Neither the Borrower's application for the Loan or the Borrower's representations in this Loan Agreement or any of the other Loan Documents contain any untrue statement of a material fact or omits any statement or information which is necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The information contained in Exhibit B and Exhibit C hereto and in Sections 2, 3, 4 and 8 of Exhibit D hereto is true and accurate in all respects. Contract and General Semces 1306003 Ashland Contractdoc l Interim Financing Loan Agreement, Exhibit I Page 9 of 17 (c) Pending Litigation. There are no proceedings pending, or, to the knowledge of the Borrower threatened, against or affecting the Borrower, in any court or before any governmental authority or arbitration board or tribunal that, if adversely determined, would materially adversely affect the Project, properties,activities, prospects or condition (financial or otherwise) of the Borrower or the Project, or the ability of the Borrower to make all payments required by the Loan Documents and otherwise observe and perform its duties, covenants, obligations and agreements under this Loan Agreement and the other Loan Documents,that have not been disclosed in writing to the State in the Borrower's application for the Loan or otherwise. (d)Compliance with Existing Agreements, Etc. The authorization,execution and delivery of this Loan Agreement and the other Loan Documents by the Borrower, the observation and performance by the Borrower of its duties, covenants, obligations and agreements thereunder and the consummation of the transactions provided for in this Loan Agreement and the other Loan Documents, the compliance by the Borrower with the provisions of this Loan Agreement and the other Loan Documents and the undertaking and completion of the Project will not result in any breach of any of the terms, conditions or provisions of, or constitute a default under,or result in the creation or imposition of any lien,charge or encumbrance upon any property or asset of the Borrower pursuant to, any existing ordinance or resolution, trust agreement, indenture,mortgage,deed of trust,loan agreement or other instrument(other than any lien and charge of this Loan Agreement or any of the documents related hereto) to which the Borrower is a party or by which the Borrower, the Project or any of its property or assets may be bound, nor will such action result in any violation of the provisions of the charter or other document pursuant to which the Borrower was established or any laws,ordinances,resolutions,governmental rules,regulations or court orders to which the Borrower, the Project or its properties or operations is subject. (e)No Defaults. No event has occurred and no condition exists that,upon authorization,execution and delivery of this Loan Agreement or any of the Loan Documents or receipt of the amount of the Loan,would constitute an Event of Default hereunder. The Borrower is not in violation of,and has not received notice of any claimed violation of,any term of any agreement or other instrument to which it is a party or by which it, the Project or its property may be bound, which violation would materially adversely affect the Project, properties, activities, prospects or condition (financial or otherwise) of the Borrower or the Project or the ability of the Borrower to make all payments required by the Loan Documents or otherwise observe and perform its duties, covenants, obligations and agreements under this Loan Agreement and the other Loan Documents. (f)Governmental Consent. The Borrower has obtained or will obtain all permits and approvals required to date by any governmental body or officer for the making, observance and performance by the Borrower of its duties, covenants, obligations and agreements under this Loan Agreement and the other Loan Documents or for the undertaking or completion of the Project and the financing or refinancing thereof,and the Borrower has complied or will comply with all applicable provisions of law requiring any notification, declaration, filing or registration with any governmental body or officer in connection with the making, observance and performance by the Borrower of its duties,covenants,obligations and agreements under this Loan Agreement and the other Loan Documents or with the undertaking or completion of the Project and the financing or refinancing thereof. No consent, approval or authorization of, or filing, registration or qualification with,any governmental body or officer that has not been obtained is required on the part of the Borrower as a condition to the authorization, execution and delivery of this Loan Agreement or any other Loan Document. Contract and General SemoesIM009 Ashland Conbact.doc Interim Financing Loan Agreement, Exhibit 1 Page 10 of 17 (g) Compliance with Law. The Borrower: (i)is in compliance with all laws, ordinances,and governmental rules and regulations to which it is subject, the failure to comply with which would materially adversely affect the ability of the Borrower to conduct its activities or undertake or complete the Project or the condition(financial or otherwise)of the Borrower or the Project; and (jj)has obtained or will obtain all licenses,permits, franchises or other governmental authorizations presently necessary for the ownership of its property or for the conduct of its activities which,if not obtained, would materially adversely affect the ability of the Borrower to conduct its activities or undertake or complete the Project or the condition (financial or otherwise) of the Borrower or the Project. (h) The Project. (i) The Project is feasible, and there will be adequate funds available to complete the Project and repay the Loan. (ii)The Project is owned by the Borrower and will be operated by the Borrower or by a person under a management contract or operating agreement with Borrower and shall remain in municipal ownership until the Loan is repaid in full. (i) Certification. Pursuant to ORS 285B.563(2)(b)(A), Borrower certifies that adequate funds will be available to repay the Loan. Q) Continuing Representations. The representations of the Borrower contained herein shall be true at the time of the Loan Closing Date and at all times during the term of this Loan Agreement. SECTION 3.02. Particular Covenants of the Borrower. (a)Use of Proceeds. The Borrower will apply the proceeds of the Loan and interest earnings thereon to finance all or a portion of the Costs of the Project in accordance with Exhibit B and Exhibit C hereof. None of the proceeds of the Loan shall be used for (i) costs in excess of one hundred percent (100%) of the total Costs of the Project, (ii)costs not listed in the Project budget or which are not eligible under the Act, or (iii)assistance to facilities that are or will be privately owned. Borrower will apply the proceeds of the Loan and the interest earnings thereon strictly in accordance with the Act and Oregon law. (b) Source of Regiment. The Loan shall be paid from such sources of repayment described in Section 2.06 hereof and Exhibit A hereto to the Loan Agreement. Funds from such sources shall be applied to the punctual payment of the principal of and the interest on the Loan and all other amounts due under this Loan Agreement and the other Loan Documents according to their respective terms. (c)Performance Under Loan Documents. The Borrower covenants and agrees(i)to maintain the Project in good repair and operating condition;(ii)to cooperate with the State in the observance and performance of the respective duties, covenants,obligations and agreements of the Borrower and the State under this Loan Agreement and the other Loan Documents; and (iii) to comply with the covenants described in this Loan Agreement and the other Loan Documents. Contract and General Semoes/506003 Ashland Contract doc Interim Financing Loan Agreement, Exhibit 1 Page 11 of 17 (d)Completion of Project and Provision of Moneys Therefore. The Borrower covenants and agrees to provide the State with copies of all plans and specifications relating to the Project for review and approval by the State,but in any event no later than ten(10)days prior to the date on which bids are advertised. The Borrower shall obtain as-built drawings for the Project and obtain certification of completion per as-built drawings from the Project engineer or architect within ninety(90)days of the Project Completion Date. The Borrower shall supply a copy of such drawings and certification to the State upon request. The Borrower further covenants and agrees (i) to exercise its best efforts in accordance with prudent practice to complete the Project and to so accomplish such completion on or before the estimated Project Completion Date set forth in Exhibit D; (ii) to proceed expeditiously with, and complete, the Project in accordance with plans reviewed and approved by the State and (iii)to provide from its own fiscal resources all moneys, in excess of the total amount of Loan proceeds it receives pursuant to this Loan Agreement,required to complete the Project. For purposes of (ii) of the preceding sentence, if the State does not review the plans and specifications or suggests modifications thereto within thirty (30) days of the receipt by the State of the plans and specifications,they shall be deemed approved. The Borrower shall have a program,documented to the satisfaction of the State, for the on-going maintenance,operation and replacement,at its sole expense, of the Project. The program shall include a plan for generating revenues sufficient to assure the operation, maintenance and replacement of the Project during the useful life of the Project. Borrower shall provide such documentation to the State on or before the Project Completion Date. (e) Disposition of Project. Unless worn out, obsolete, or in the reasonable business judgment of the Borrower, no longer useful in the operation of the Project, the Borrower shall not sell, lease, exchange, abandon or otherwise dispose of all or substantially all or any substantial portion of the Project or any system which provides revenues for payment of amounts due under this Loan Agreement and the Loan Documents, except if (i) the State consents thereto in writing upon ninety (90) days' prior written notice to the State and (ii) Borrower assigns this Agreement and the other Loan Documents pursuant to Article V hereof. Except as provided in Exhibit A hereto, proceeds of any such transfer not used to replace property that is part of the Project shall be applied to the payment or prepayment of the outstanding principal of and interest on the Loan, as provided in Section 2.04 of this Agreement. (f) (Reserved] (g) Operation and Maintenance of Project. The Borrower covenants and agrees that it shall, in accordance with prudent ownership practice, (i) at all times operate the Project so as to preserve the long term public benefits of the Project, and(ii)maintain the Project in good repair,working order and operating condition, including from time to time making all necessary and proper repairs, renewals, replacements, additions, betterments and improvements as may be required. (h) Records; Accounts. The Borrower shall keep accurate records and accounts for the revenues and funds that are the source of repayment of the Loan (the "Repayment Revenue Records"), separate and distinct from its other records and accounts (the "General Records"). Such Repayment Revenue Records shall be maintained in accordance with generally accepted accounting principles as established by the Government Accounting Standards Board as in effect from time to time and shall be audited annually by an independent accountant, which audit may be part of the annual audit of the General Records of the Borrower. Such Repayment Revenue Records and General Records shall be made available for inspection by the State at any reasonable time, and a copy of such annual audit(s) therefore, including all written comments and recommendations of such accountant, shall be furnished to the State within two hundred ten (210) days of the close of the fiscal year being so audited. The Borrower's financial management system Contract and General SsmoeaI606003 Ashland Conlract.doc Interim Financing Loan Agreement, Exhibit 1 Page 12 of 17 must conform with the generally accepted accounting principles for state and municipal corporations established by the National Committee on Governmental Accounting as in effect from time to time. (i)Inspections:Information. The Borrower shall permit the State and any party designated by the State to examine, visit and inspect, at any and all reasonable time, the property, if any, constituting the Project, and to inspect and make copies of any accounts,books and records,including,without limitation,its records regarding receipts, disbursements, contracts, investments and any other matters relating thereto and to its financial standing, and shall supply such reports and information as the State may reasonably require in connection therewith. In addition, the Borrower shall provide the State with copies of loan documents or other financing documents and any official statements or other forms of offering prospectus relating to any other bonds, notes or other indebtedness of the Borrower that are issued after the Loan Closing Date. Q) Insurance. The Borrower shall maintain or cause to be maintained, insurance policies with responsible insurers or self insurance programs insuring against risk of direct physical loss, damage or destruction of the Project, at least to the extent that similar insurance is usually carried by governmental units constructing,operating and maintaining similar facilities, including liability coverage,all to the extent available at reasonable cost. Nothing herein shall be deemed to preclude the Borrower from exerting against any party, other than the State, a defense which may be available to the Borrower, including without limitation a defense of immunity. In the event the Project or any portion thereof is destroyed,any insurance proceeds shall be paid to the State and shall be applied to prepay the principal of and interest on the Loan in accordance with Section 2.04 hereof. (k) Condemnation. In the event the Project or any portion thereof is condemned, any condemnation proceeds shall be used to prepay the outstanding balance on the Loan in accordance with Section 2.04 hereof. (1) Notice of Material Adverse Change. The Borrower shall promptly notify the State of any material adverse change in the activities, prospects or condition (financial or otherwise) of the Borrower or the Project or in the ability of the Borrower to make all payments required by the Loan Documents and otherwise observe and perform its duties,covenants,obligations and agreements under this Loan Agreement and the other Loan Documents. (m) Financial Statements: Reports. The Borrower shall deliver to the State in form and details satisfactory to the State: such other statement or statements or reports as to the Borrower as the State may reasonably request. (n)Contract Covenants. The Borrower covenants and agrees to comply with the terms of the Contract including the covenants of the Borrower in Section 5 of the Contract. (o)Further Assurances. The Borrower shall,at the request of the State,authorize,execute,acknowledge and deliver such further resolutions, conveyances, transfers, assurances, financing statements and other instruments as may be necessary or desirable for better assuring, conveying, granting, assigning and confirming the rights, security interests and agreements granted or intended to be granted by this Loan Agreement. Contact and General SemceaISOG 03 Aahland ConVad.doc Interim Financing Loan Agreement, Exhibit 1 Page 13 of 17 ARTICLE]V CONDITIONS PRECEDENT SECTION 4.01. Loan Closing. The State's obligations hereunder are subject to satisfaction of the following conditions precedent on or prior to the Loan Closing Deadline or such later date as the State may authorize in writing in the State's sole and absolute discretion: (a) the Borrower has caused to be executed and delivered to the State the following items, each in a form and substance satisfactory to State and its Counsel: (i) this Loan Agreement duly executed and delivered by an Authorized Officer of the Borrower; (ii) the Note duly executed and delivered by an Authorized Officer of the Borrower; (iii)the Contract duly executed and delivered by an Authorized Officer of the Borrower; (iv)copy of the ordinance,order or resolution of the governing body of the Borrower authorizing the execution and delivery of this Loan Agreement, the other Loan Documents, and the Borrower's Contract, certified by an Authorized Officer of the Borrower; (v)an opinion of the Borrower's Counsel,acceptable to the State, substantially in the form set.forth in Exhibit G; and (vi) such other certificates, documents, opinions and information as the State may reasonably require. (b) there is money available in the Special Public Works Fund for the Project; provided, however, the State shall be under no obligation to make this Loan or disburse funds under this Loan Agreement if there has been a change in the Act so that the Project is no longer eligible for financial assistance authorized by this Loan Agreement. SECTION 4.02. Conditions to Disbursements. Notwithstanding anything in this Loan Agreement or any of the Loan Documents to the contrary, the State shall have no obligation to make the Loan or disburse funds under this Loan Agreement to the Borrower hereunder unless: (a)no Event of Default,or no event,omission or failure of a condition which would constitute an Event of Default as defined in this Loan Agreement or any of the Loan Documents after notice or lapse of time or both, has occurred and is continuing under this Loan Agreement or any of the Loan Documents; (b)the representations or warranties of the Borrower made in this Loan Agreement are true and correct on the date of disbursement with the same effect as if made on such date; (c) State has received (i) a completed Disbursement Request and (ii) any other written evidence of materials and labor furnished to or performed upon the Project,itemized receipts or invoices for the payment of the same,and releases, satisfactions and other signed statements and forms as the State may require as a condition for making disbursements of funds under this Loan Agreement. The State may,at its option,from time to time, either reimburse the Borrower for construction costs paid or may make direct payment for construction costs to suppliers,subcontractors and others for sums due them in connection with construction of the Project. Nothing herein contained shall require the State to pay any amounts for labor or materials unless satisfied that such claims are reasonable and that such labor and materials were actually expended and used in the construction of the Project. The State,at its option, from time to time,may also require that the Borrower have a contractor or subcontractor execute and/or deliver a surety bond or indemnification in form and substance acceptable to the State for the faithful performance of the construction contract or subcontract and payment of all liens and lienable expenses in connection therewith in a sum equal to the contract or subcontract price. Disbursements for the Costs of the Project shall be subject to a retainage at the rate of five percent(5%)(unless such retainage is waived in writing by the State)which will be released upon satisfactory completion of the Project; and Contract and General SernceslB06003 Ashland Contract tloc Interim Financing Loan Agreement, Exhibit I Page 14 of 17 (d)Department and the Special Public Works Fund have received sufficient funding,appropriations and other expenditure authorizations to allow Department, in the exercise of its reasonable administrative discretion,to make the disbursement and there are sufficient moneys in the accounts or funds to be used to cover the disbursement, as determined by Department in the reasonable exercise of its administrative discretion,to permit Department to make the disbursement. Further,the State shall have no obligation to make any disbursement of funds to the Borrower if on or before the time for disbursement,there has been a change in the Act so that the Project is no longer eligible for financial assistance authorized by this Loan Agreement. ARTICLE V ASSIGNMENT SECTION 5.01. [Reserved] SECTION 5.02. Assignment by Borrower. This Loan Agreement and the other Loan Documents may not be assigned by the Borrower without the prior written consent of the State. The State may grant or withhold such consent in its sole discretion. In the event of an assignment of this Loan Agreement and the other Loan. Documents by Borrower and assumption of the obligations hereunder, Borrower shall pay, or cause to be paid, to the State any fees or costs incurred by the State as the result of such assignment, including but not limited to, attorney fees of State's Counsel. ARTICLE V1 DEFAULTS AND REMEDIES SECTION 6.01. Event of Default. Time is of the essence. If any of the following events occurs, it is hereby defined as and declared to be and to constitute an "Event of Default:" (a)Failure by the Borrower to pay,or cause to be paid,any amount required to be paid hereunder on the due date thereof; or (b) Failure by the Borrower to make, or cause to be made, any required payments of principal and interest on any bonds, notes or other material obligations of the Borrower for borrowed money(other than the Loan), after giving effect to the applicable grace period; or (c)Any representation made by or on behalf of the Borrower contained in this Loan Agreement or any other Loan Document, or in any agreement, instrument, certificate or document furnished in compliance with or with reference to this Loan Agreement,any other Loan Document or the Loan or in connection with the Lottery Bonds, including but not limited to any representation with respect to current or historical information made to the State herein or in any other pertinent documents,certificates and reports relied upon by the State in gauging the progress of the Project, compliance with the requirements of the Act or performance of duties by the Borrower, is false or misleading in any material respect; or (d)A petition is filed by or against the Borrower under any federal or state bankruptcy or insolvency law or other similar law in effect on the date of this Loan Agreement or thereafter enacted,unless in the case of any such petition filed against the Borrower, such petition shall be dismissed within twenty (20) calendar days after such filing, and such dismissal shall be final and not subject to appeal; or the Borrower shall become insolvent or bankrupt or make an assignment for the benefit of its creditors; or a custodian (including,without limitation, a receiver, liquidator or trustee of the Borrower or any of its property) shall be appointed by court order or take possession of the Borrower or its property or assets if such order remains in effect or such possession continues for more than thirty (30) calendar days; .(e) Failure of the Borrower's governing body to appropriate sufficient funds to fully fund all of the Borrower's obligations to make payments required by the Loan Documents for any future fiscal period; or Conbad and General Semc,eYB06003 h Land Contrad.dac Interim Financing Loan Agreement, Exhibit 1 Page 15 of 17 (0 The occurrence of any event of default under Section 6 of the Contract or under any of the Loan Documents; or (g) Failure by the Borrower to observe and perform any duty,covenant,obligation or agreement on its part to be observed or performed under this Loan Agreement or any other Loan Documents, other than as referred to in subsections (a) through (f) of this Section, which failure shall continue for a period of thirty (30)calendar days after written notice,specifying such failure and requesting that it be remedied,is given to the Borrower by the State, unless the State shall agree in writing to an extension of such time prior to its expiration;provided,however,that if the failure stated in such notice is correctable but cannot be corrected within the applicable period, the State may not unreasonably withhold its consent to an extension of such time up to one hundred twenty (120) days from the delivery of the written notice referred to above if corrective action is instituted by the Borrower within the applicable period and diligently pursued until the Event of Default is corrected; or (h) The Borrower fails to proceed expeditiously with, or to complete, the Project or any segment or phase of the Project in accordance with the plans and schedules approved by the State. SECTION 6.02. Notice of Default. The Borrower shall give the State prompt telephonic notice of the occurrence of any Event of Default referred to in Section 6.01(d)hereof,and of the occurrence of any other event or condition that constitutes an Event of Default at such time as any senior administrative or financial officer of the Borrower becomes aware of the existence thereof. Any telephone notice pursuant to this Section 6.02 shall be confirmed in writing as soon as practicable by the Borrower. SECTION 6.03. Remedies on Default. Whenever an Event of Default referred to in Section 6.01 hereof shall have occurred and be continuing,the State shall have the right to take any action permitted or required pursuant to the Loan Agreement or any other Loan Document and to take whatever other action at law or in equity may appear necessary or desirable to collect the amounts then due and thereafter to become due hereunder or to enforce the performance and observance of any duty,covenant,obligation or agreement of the Borrower hereunder, including without limitation, (a) declaring all payments under the Note and all other amounts due hereunder and under the other Loan Documents to be immediately due and payable,and upon notice to the Borrower the same shall become due and payable without further notice or demand, (b) appointment of a receiver of the Project, (c)refusal to disburse any funds under this Loan Agreement or the Contract, (d) barring the Borrower from applying for future Special Public Works Fund assistance, or(e) withholding amounts otherwise due to the Borrower to apply to the payment of amounts due under this Loan Agreement as provided in ORS 285B.449. SECTION 6.04. Attorney's Fees and Other Expenses. To the extent permitted by law, the prevailing party in any dispute arising from this Contract shall be entitled to recover from the other its reasonable attorney's fees, costs and expenses at trial and on appeal. SECTION 6.05. Application of Moneys. Any moneys collected by the State pursuant to Section 6.03 hereof shall be applied(a) first,to pay any attorney's fees or other fees and expenses owed by the Borrower hereunder, (b) second, to pay interest due and payable on the Loan, (c) third, to pay principal due and payable on the Loan,and(d) fourth, to pay any other amounts due and payable under this Loan Agreement or any of the Loan Documents. SECTION 6.06. No Remedy Exclusive;Waiver;Notice. No remedy herein conferred upon or reserved to the State is intended to be exclusive,and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Loan Agreement or any of the Loan Documents or now or hereafter existing at law or in equity. No delay or omission to exercise any right,remedy or power accruing upon any Event of Default shall impair any such right, remedy or power or shall be construed to be a waiver thereof, but any such right, remedy or power may be exercised from time to time and as often as may be deemed C.n d and Gen..l Sem.c 806003 AW.M ConVad.d. Interim Financing Loan Agreement, Exhibit 1 Page 16 of 17 expedient. To entitle the State to exercise any remedy reserved to it in this Article VI, it shall not be necessary to give any notice, other than such notice as may be required in this Article Vl. SECTION 6.07. Default by the State. In the event of any default by the State under any covenant, agreement or obligation of this Loan Agreement,the Borrower's remedy for such default shall be limited to injunction,special action,action for specific performance or any other available equitable remedy designed to enforce the performance or observance of any duty, covenant, obligation or agreement of the State hereunder as may be necessary or appropriate. ARTICLE VII MISCELLANEOUS SECTION 7.01. Notices. All notices hereunder shall be sufficiently given and shall be deemed given when hand delivered or mailed by registered or certified mail, postage prepaid, to the Borrower at the address specified on Exhibit D hereof and to the State at the following address: Economic and Community Development Department Attention: Operations Manager, Community Development Division 775 Summer Street NE, Suite 200 Salem, OR 97301-1280 Any notices addressed and mailed shall be effective five (5) days after mailing. Any notice given by personal delivery shall be effective when actually delivered. Any party may designate any further or different addresses to which subsequent notices,certificates or other communications shall be sent,by notice in writing given to the others. SECTION 7.02. Binding Effect. This Loan Agreement shall inure to the benefit of and shall be binding upon the State and the Borrower and their respective successors and assigns. SECTION 7.03. Severability. In the event any provision of this Loan Agreement shall be held illegal, invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate, render unenforceable or otherwise affect any other provision hereof. SECTION 7.04. Amendments, Supplements and Modifications. This Loan Agreement may not be amended, supplemented or modified without the prior written consent of the State and the Borrower. This Loan Agreement may not be amended,supplemented or modified in a manner that is not in compliance with the Act. SECTION 7.05. Execution in Counterparts. This Loan Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 7.06. No Construction against Drafter. Both parties acknowledge that they are each represented by and have sought the advice of Counsel in connection with this Loan Agreement and the transactions contemplated hereby and have read and understand the terms of this Loan Agreement. The terms of this Loan Agreement shall not be construed against either party as the drafter hereof. SECTION 7.07. Applicable Law. This Loan Agreement shall be governed by and construed in accordance with the laws of the State of Oregon,including the Act,without regard to principles of conflicts of law. Any claim,action, suit or proceeding(collectively,"Claim")between the State(and/or any agency or department of the State of Oregon) and the Borrower that arises from or relates to this Loan Agreement shall be brought and conducted solely and exclusively within the Circuit Court of Marion County for the State of Oregon(unless Oregon law requires that it be brought and conducted in another county);provided, however, if a Claim must be brought in a federal forum, then it shall be brought and conducted solely and ConVad and Geneml Sem¢s1606003 Ashland Contrad doc Interim Financing Loan Agreement,Exhibit I Page 17 of 17 exclusively within the United States District Court for the District of Oregon. In no event shall this Section be construed as a waiver by the State of Oregon of any form of defense or immunity,whether it is sovereign immunity,governmental immunity,immunity based on the Eleventh Amendment to the Constitution of the United States or otherwise, from any claim or from the jurisdiction of any court. SECTION 7.08. Consents and Approvals. Whenever the written consent or approval of the State shall be required under the provisions of this Loan Agreement, such consent or approval may only be given by the State unless otherwise provided by law or by rules, regulations or resolutions of the State. SECTION 7.09. Merger; No Waiver. This Loan Agreement and the attached exhibits (which by this reference are incorporated herein)constitute the entire agreement between the parties on the subject matter hereof. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Loan Agreement. No waiver of any provision of this Loan Agreement or consent shall be binding unless in writing and signed by the party against who it is asserted and all necessary State approvals have been obtained. Such waiver or consent,if made,shall be effective only in the specific instance and for the specific purpose given. The failure of the State to enforce any provision of this Loan Agreement shall not constitute a waiver by the State of that or any other provision. IN WITNESS WHEREOF,the State and the Borrower have caused this Loan Agreement to be executed and delivered,effective as of the latest date of the signatories below. The Borrower,by the signature below of its Authorized Representative,hereby acknowledges that it has read this Agreement,understands it,and agrees to be bound by its terms and conditions. � 59 STATE OF OREGON CITY OF ASHLAND acting by and through its Economic and Community Development Department By: XXXXXXXXXXXXXXXXXXX By: XXXXXXXXXXXXXXXXXXX Laird Bryan, Operations Manager The Honorable John Morrison Community Development Division Mayor of Ashland Date: XXXXXXXXXXXXXXXXXXX Date: XXXXXXXXXXXXXXXXXXX APPROVED AS TO LEGAL SUFFICIENCY IN ACCORDANCE WITH ORS 291.047: XXXXXXXXXXXXXXXXXXX Lynn T. Nagasako, Sr. Assistant Attorney General Date: XXXXXXXXXXXXXXXXXXX Coned and General semces/s06003 Ashland ConeacLnoc Interim Financing Loan Agreement Exhibit A Page 1 of I Exhibit A SPECIAL CONDITIONS OF AWARD Interim Financing I. General Fund as a Source of Repayment The Loan shall be payable from the general fund of the Borrower and shall be a full faith and credit obligation of the Borrower which is payable from any taxes which the Borrower may levy within the limitations of Article XI of the Oregon Constitution. 11. Security - Refunding Proceeds A. The principal of and interest on the Loan shall be payable from the Refunding Proceeds. The Borrower hereby grants to the State a security interest in and irrevocably pledges the Refunding Proceeds to pay all of the obligations owed by the Borrower to the State under the Loan Agreement. B. The Refunding Proceeds pledged above pursuant to Section 11. A. and hereafter received by the Borrower shall immediately be subject to the lien of such pledge without physical delivery or further act, and the lien of the pledge shall be superior to all other claims and liens whatsoever, to the fullest extent permitted by ORS 288.594. The Borrower hereby represents and warrants that the pledge of the Refunding Proceeds hereby made by the Borrower complies with, and shall be valid and binding from the date of this Loan Agreement pursuant to, ORS 288.594. Con"d and General$er ceWBM003 Ashland ConaaG4ac Interim Financing Loan Agreement Exhibit B Page 1 of 1 Exhibit B PROJECT Borrower shall construct a 650-foot by 28-foot-wide street.The Project includes excavation and installation of the following: utilities; sub-base, level 2 hot mixed asphalt and concrete; 60-80 foot wide culvert; 5 foot sidewalks; curb, gutter, and storm drain; street lighting; and pedestrian amenities. Contract and General Semce,eB06003 Ashland Contract.doc {f O ❑ m x V C ♦ N DC ❑ D m m � m a _ a O C a' II N F 2 H > C F ¢p Y v 0A c Z_ w Q L m N V N OI m C m D V - ry fn m ¢ I m L 6 p D Q b C Q w m L 0 m N F LL LL C J LL m C C w~ 0 O V N 0 f LL m C N O D 6 U N L_ O Q C m D C Y Q 2 OI ly ❑ C O o m c c Y j C � 1D m LL Q O C o D c m O U N ¢ F V N pp O N ❑ ^ 0 p O E o m o O ry a m 0 u c m R' LL O E a E o m N J m u ❑ ao 06 a c c m n F OLL w C C O m w m E o 0 L N m O O C Em n C p O O m D O O m o`n C U 4 m w w O E LL m a Q m O n C O N V p m m C D r IO p m L 9 we m m 0 D o y c a m 10 n n c CO ¢ G u L° m L m c m U LL � E C m t C D n N LL U E E c z m O m o m b a L m z m mJ mo uu 2mc m m vl c ._ m m O O` O C O O m L O na uw1 Interim Financing Loan Agreement Exhibit C Page 2 of 2 Oregon Economic & Community Development Department Project Budget Project Number: B06003 Project Name: Ashland-Jefferson and Washington Street Improvement Project Goals (report for every cash request) Proposed Work Plan Estimated Results Achieved Completion Date 1 Building Plan and Civil Plan Submittals Oct 30, 2006 2 Street Construction Jan 31, 2007 3 Building Construction Mar 30, 2007 4 Project Completion Oct 30, 2007 5 6 7 8 9 10 80600)Ashland Ex C Budget its Pape 2 d 2 Interim Financing Loan Agreement Exhibit D Page I of 1 Exhibit D DESCRIPTION OF THE LOAN 1. Loan Closing Deadline: January 15, 2007 2. Name and Address of Borrower: City of Ashland 20 East Main Street Ashland, OR 97520 3. Costs of the Project: $900,000 4. Estimated Project Completion Date: October 31, 2007 5. Maximum Aggregate Principal Amount of Loan: $500,000 6. Interest Rate: 3.77% per annum 7. Maturity Date: That date which is 2.5 years from the Loan Closing Date 8. Authorized Officer(s) of Borrower: Mayor ConbaO and General Semca4BNW 3 Ashland Conbacl.d. - \ ° \ 0 0 } } \ \ lo LL � � } > 7 \ C6 \ \ E © _ - \ k - % / ƒ - ) r - � Interim Financing Loan Agreement Exhibit E Oregon Economic&Community Development Department Page 2 of 2 Disbursement Request Project Number: Project Name: Request Number: . Project Goals (report for every cash request) Proposed Work Plan Estimated Results Achieved Completion Date 1 2 3 4 5 6 7 8 9 10 6 U E Dib R,Watlm Loan A,.1 Page 2 012 Interim Financing Loan Agreement Exhibit F Page I of 2 Exhibit F State of Oregon Economic and Community Development Department Promissory Note (Dated) XXXXXXXXXXXXXXXXX, XXXX Ashland, OR FOR VALUE RECEIVED, the City of Ashland, 20 East Main Street, Ashland,OR 97520 (hereinafter "Borrower"),unconditionally promises to pay in lawful money of the United States of America to the order of the STATE OF OREGON, ACTING BY AND THROUGH ITS ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT, at its principal office at 775 Summer Street NE, Suite 200, Salem, Oregon 97301-1280(hereinafter"State"),the principal sum of five hundred thousand Dollars($500,000)or so much thereof as is disbursed pursuant to the Loan Agreement(as defined below),plus interest at the rate of three and 77/100 percent(3.77%)per annum, from the date of disbursement until paid. Interest shall be computed on the basis of a 360-day year,consisting of twelve(12)thirty (30)day months. All outstanding principal and accrued unpaid interest on this Note are due and payable in full on the Maturity Date (as defined in the Loan Agreement). Capitalized terms not otherwise defined in this Note shall have the meanings assigned to them by that certain loan agreement dated as of XXXXXXXXXXXXXXXXX, XXXX between the State and the Borrower (as amended from time to time the "Loan Agreement"). This Note is subject to mandatory prepayment,and is payable prior to its Maturity Date,as provided for in Section 2.04 of the Loan Agreement. Each payment made by the Borrower hereunder shall be applied in accordance with Section 2.04(c)of the Loan Agreement. This Note is given to avoid the execution by Borrower of an individual note for each disbursement of Loan proceeds by State to Borrower in accordance with Section 2.01 of the Loan Agreement. In consideration thereof,Borrower authorizes State to record in State's files the date and amount of each such disbursement,the date and amount of each payment and prepayment by Borrower hereunder and the amount of interest accrued and paid. Borrower further agrees that absent manifest error, such notations shall be conclusive evidence of borrowing,payments and interest under this Note;provided,however,that failure to make any such notations shall not affect the obligations of Borrower hereunder or under any of the Loan Documents. If any Event of Default occurs, the outstanding balance of the Note, including principal, interest and other charges, if any, shall, at the option of the State,become immediately due and payable in accordance with Section 6.03 of the Loan Agreement. Failure or delay of the holder of this Note to exercise any option available to the State under the terms of this Note or the Loan Agreement shall not constitute a waiver of the right to exercise the option in the event of any continuing or subsequent default and shall not constitute a waiver of any subsequent breach of the same or of any other provision of this Note or the Loan Agreement. Contract and General SeMms1606003 Ashland Coneactdoa Interim Financing Loan Agreement Exhibit F Page 2 of 2 All parties to this Note hereby waive presentment,dishonor,notice of dishonor,and protest. All parties hereto hereby consent to,and the holder hereof is hereby expressly authorized to make,without notice,any and all renewals, extensions,modifications or waivers of the time for or the terms of payment of any sum or sums due hereunder, or under any documents or instruments relating to or securing this Note, or of the performance of any covenants, conditions or agreements hereof or thereof, or the taking or release of collateral securing this Note. The liability of all parties on this Note shall not be discharged by any action consented to above taken by any holder of this Note. If this Note is placed in the hands of an attorney for collection, the Borrower shall,to the fullest extent permitted by law and on demand,pay to the State the reasonable fees and expenses of attorneys,whether at trial or on appeal, and other reasonable expenses (including without limitation the reasonable costs of the State's Counsel and legal staff)incurred by the State in the collection of principal and interest due under this Note or any other sum due hereunder or under any of the Loan Documents in the enforcement of performance or observation of any other duties, covenants, obligations or agreements of the Borrower. This Note is made with reference to, and is to be construed in accordance with, the laws of the State of Oregon. CITY OF ASHLAND By: XXXXXXXXXXXXX Title: XXXXXXXXXXXXX Notice to Borrower: Do not sign this Note before you read it. Contract and Genond Semces`BMW3 Ashland Oontrad doc Interim Financing Loan Agreement Exhibit G Page I of 2 SAMPLE OPINION OF MUNICIPALITY COUNSEL [LETTERHEAD OF COUNSEL TO MUNICIPALITY] [DATED ] Oregon Economic and Community Development Department 755 Summer Street NE, Suite 200 Salem, Oregon 97301-1280 Ladies and Gentlemen: [Insert "I" or "We"] have acted as counsel to City of Ashland, of the State of Oregon (the "Municipality"), which has entered into a Loan Agreement (as here'., µ er de V, with the Oregon Economic and Community Development Department (the "Departmen )= urs t to= ctions 28513.410 1 through 28513.482 of the Oregon Revised Statutes(the"Act"),and have E cte( a su�iitt c nection with the authorization, execution and delivery by the Municipality o , ont of inafter defined). ti Capitalized terms not otherwise defined in this letter shall 1 hb,ffi at mg s ne - them by the Loan Agreement. In so acting[insert "I"or"we"] have e py ,Ine �t e„C n h tlo a d a of the State of Oregon and the Municipality's Charter, if any. [Insert '',I', :`W ] .ha e also°ex in originals, or copies certified or otherwise identi fo ,'nsert ` y" r our ] at1 fa'iio ]lowing: k A. The L an A em If d 0 fy t4 00 by and between the Department and the Municipality nclu tug e P so o 2006, in the principal amount of $500,000 exe utedby. u icy ah y ' ' lectively, the "Loan Agreement"). B. The Fi` csl tan ward Contract number B06003 (the "Contract") by and between the Department 'In d t nicipality; C. Procee s of the governing body of the Municipality relating to the approval of the Contract and the Loan Agreement and the execution,issuance and delivery thereof on behalf of the Municipality,and the authorization of the undertaking and completion of the Project (as defined in the Loan Agreement); D. All outstanding instruments relating to bonds, notes or other indebtedness of or relating to the Municipality. [insert "I" or "We"] have also examined and relied upon originals, or copies certified or otherwise authenticated to[insert"my"or"our"]satisfaction,of such other records,documents,certificates and other instruments, and made such investigation of law as in [insert"my"or"our"]judgment[insert"I"or"we"] have deemed necessary or appropriate to enable [insert "me" or "us"] to render the opinions expressed below. Based upon the foregoing, [insert "I am" or"We are"] of the opinion that: 1. The Municipality is a duly formed and operating[insert specific nature of Municipality]described in ORS 285B.410(7), with the legal right to own and operate the Project. 2. The Municipality has full legal right and authority to execute and deliver the Contract and the Loan Agreement and to observe and perform its duties, covenants,obligations and agreements thereunder and to undertake and complete the Project; Contract and General Semce B06003 Ashland Coneaddloc Interim Financing Loan Agreement Exhibit G Page 2 of 2 3. Amounts due to the Department pursuant to the Contract and the Promissory Note are payable from the sources described in Section 2.07 of the Loan Agreement. 4. The Ordinance (the "Ordinance") of the Municipality approving the Contract and the Loan Agreement and authorizing their execution, issuance and delivery on behalf of the Municipality, and authorizing the Municipality to undertake and complete the Project has been duly and lawfully adopted and authorized in accordance with the Municipality's Charter, if any,the Act and other applicable Oregon law, and the Ordinance was adopted at a meeting'or meetings which were duly called with public notice and held in accordance with the Municipality's Charter, if any, and applicable Oregon law, and at which quorums were present and acting throughout. 5. The Contract and the Loan Agreement have been duly authorized, executed and delivered by the authorized officers of the Municipality and constitute the leg ant N din , obligation of the Municipality enforceable in accordance with their respective terms; su je`t, ho evei to bankruptcy, insolvency, fraudulent conveyance,reorganization,moratorium and other im lar a ffe ling creditors' rights or remedies generally ("Creditor's Right Limitations") here ofo �o er' ei_ acted and the application of equitable principles. z NAk 6. To the best of[insert"my"or`bur"]knowledg a r uc nest 91 6o a [tns'e` `I"or"we"]have deemed appropriate, the authorization, executio =a danlu he Co ti act an e Loan Agreement by the Municipality,the observation and perf nee•b t'e u ci f i ties,covenants,obligations and agreements the r and a n in do f t e tra sac ons contemplated therein and the ale +ra undertaking and c pletio of ,xo Y?d n aa d il n t c nt av� ne any existing law or any existing order, injunction,judg -6 ree,u r re Ut ti n r or ovetnmental or administrative agency, authority or per on°=havm ,urts 'ct` n- e ri th cipality property or assets or result in a breach or violation of any f elterrti d r tsi r s , or constitute a default under, any existing bond ordinance, resolution,trust agr e rit d engage,deed of trust or other agreement to which the Municipality is a party or by t h ' t A, or its property or assets is bound. 7. To the b "Y`_o£J Bert"my"or`bur"] knowledge,after such investigation as [insert"I"or"we"]have deemed appropriate, all approvals, consents or authorizations of, or registrations of or filings with, any governmental or public agency, authority or person required to date on the part of the Municipality in connection with the authorization, execution, delivery and performance of the Contract and the Loan Agreement and the undertaking and completion of the Project have been obtained or made. 8. To the best of[insert"my"or`bur"]knowledge,after such investigation as[insert"I"or"we"]have deemed appropriate, there is no litigation or other proceeding pending or threatened in any court or other tribunal of competent jurisdiction (either State or Federal) questioning the creation, organization or existence of the Municipality or of the validity, legality or enforceability of the Contract or the Loan Agreement or the undertaking or completion of the Project. This opinion is rendered on the basis of the laws of the State of Oregon, including the Act, as enacted and construed on the date hereof. [insert "I"or"We"] express no opinion as to any matter not set forth in the numbered paragraphs herein. Very truly yours, convact and General Sem,,esl906003 Ashland Contraddloc Exhibit 2 Page 1 of I ENVIRONMENTAL AND NATURAL RESOURCE AGENCIES The federal, state, and local agencies listed have enacted ordinances or regulations relating to environmental pollution or the preservation of natural resources that may affect the performance of construction contracts. FEDERAL AGENCIES Agriculture, Department of Forest Service Soil Conservation Service Army, Department of the Corps of Engineers Coast Guard Energy, Department of Environmental Protection Agency Health & Human Services, Department of Heritage Conservation and Recreation Service Interior, Department of Bureau of Indian Affairs Bureau of Land Management Fish and Wildlife Service Office of Surface Mining, Reclamation and Enforcement Bureau of Reclamation Labor, Department of Occupational Safety & Health Administration Mine Safety & Health Administration Transportation, Department of Federal Highway Administration STATE AGENCIES Agriculture, Department of Energy, Office of Environmental Quality, Department of Fish and Wildlife, Department of Forestry, Department of Geology and Mineral Industries, Department of Human Resources, Department of Land Conservation and Development Commission State Lands, Division of State Soil & Water Conservation Commission Transportation, Department of Water Resources Department LOCAL AGENCIES City Councils County Courts County Commissioners, Boards of Planning Commissions Special Districts: Ports, Water, Sewer, Roads Coneacl and General Senncee/B06003 Ashland Contract aoc Promissory Note Page 1 of 2 State of Oregon Economic and Community Development Department Promissory Note (Dated) Ashland, OR FOR VALUE RECEIVED, the City of Ashland, 20 East Main Street,Ashland, OR 97520 (hereinafter "Borrower"), unconditionally promises to pay in lawful money of the United States of America to the order of the STATE OF OREGON, ACTING BY AND THROUGH ITS ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT, at its principal office at 775 Summer Street NE, Suite 200, Salem, Oregon 97301-1280(hereinafter"State"),the principal sum of five hundred thousand Dollars($500,000)or so much thereof as is disbursed pursuant to the Loan Agreement(as defined below),plus interest at thexate of three and 77/100 percent(3.77%)per annum, from the date of disbursement until paid. Interest shall be computed on the basis of a 360-day year,consisting of twelve(12)thirty(30)day months. All outstanding principal and accrued unpaid interest on this Note are due and payable in full on the Maturity Date (as defined in the Loan Agreement). Capitalized terms not otherwise defined in this Note shall have the meanings assigned to them by that certain loan agreement dated as of between the State and the Borrower (as amended from time to time the "Loan Agreement"). This Note is subject to mandatory prepayment,and is payable prior to its Maturity Date,as provided for in Section 2.04 of the Loan Agreement. Each payment made by the Borrower hereunder shall be applied in accordance with Section 2.04(c)of the Loan Agreement. This Note is given to avoid the execution by Borrower of an individual note for each disbursement of Loan proceeds by State to Borrower in accordance with Section 2.01 of the Loan Agreement. In consideration thereof, Borrower authorizes State to record in State's files the date and amount of each such disbursement,the date and amount of each payment and prepayment by Borrower hereunder and the amount of interest accrued and paid. Borrower further agrees that absent manifest error, such notations shall be conclusive evidence of borrowing,payments and interest under this Note;provided,however,that failure to make any such notations shall not affect the obligations of Borrower hereunder or under any of the Loan Documents. If any Event of Default occurs, the outstanding balance of the Note, including principal, interest and other charges, if any, shall, at the option of the State,become immediately due and payable in accordance with Section 6.03 of the Loan Agreement. Failure or delay of the holder of this Note to exercise any option available to the State under the terms of this Note or the Loan Agreement shall not constitute a waiver of the right to exercise the option in the event of any continuing or subsequent default and shall not constitute a waiver of any subsequent breach of the same or of any other provision of this Note or the Loan Agreement. Contract and General SBNICestB06003 Ashland Promissory Note.doc Promissory Note Page 2 of 2 All parties to this Note hereby waive presentment,dishonor,notice of dishonor,and protest. All parties hereto hereby consent to, and the holder hereof is hereby expressly authorized to make,without notice, any and all renewals, extensions,modifications or waivers of the time for or the terms of payment of any sum or sums due hereunder, or under any documents or instruments relating to or securing this Note, or of the performance of any covenants, conditions or agreements hereof or thereof, or the taking or release of collateral securing this Note. The liability of all parties on this Note shall not be discharged by any action consented to above taken by any holder of this Note. If this Note is placed in the hands of an attorney for collection,the Borrower shall, to the fullest extent permitted by law and on demand,pay to the State the reasonable fees and expenses of attorneys,whether at trial or on appeal, and other reasonable expenses (including without limitation the reasonable costs of the State's Counsel and legal staff)incurred by the State in the collection of principal and interest due under this Note or any other sum due hereunder or under any of the Loan Documents in the enforcement of performance or observation of any other duties, covenants, obligations or agreements of the Borrower. This Note is made with reference to, and is to be construed in accordance with, the laws of the State of Oregon. CITY OF ASHLAND By: Title: Notice to Borrower: Do not sign this Note before you read it. ConVacl and General Sem"W306003 Ashland Promissory Nole.doe August 16, 2006 The Honorable John Morrison City of Ashland 20 E. Main Street Ashland, OR 97520 RE: Amended Award for Special Public Works Fund Project No. B06003, Ashland- Jefferson and Washington Street Improvements (Brammo n96torsport) Dear Mayor Morrison: Referring to our previous letter regarding the award for the above mentioned project, we would like to inform you on the amendment.. We added an Interim Loan to the award to increase the ability to access the award before the Bond sales period. Enclosed please fmd a summary showing the award amount and the terms and conditions of the award. We will send a contract for the award to you shortly for your signature. If you need assistance, please contact your regional coordinator, Fumi Schaadt ,at (503)986- 0027. Sincerely, Laird Bryan, Infrastructure Manager Community Development Division Cc:Lee Tuneberg,Administrative Service & Finance Director/ Larry Holzgang,Business Development Officer— OECDD Fiscal File GOVERNOR THEODORE R KULONGOSKI 775 Summer St.NE,Suite 200•Salem,Oregon 97301-1280 Phone 503-986-0123•TTY 1-800-735-2900•Fax 503-581-5115•htrp://w .econ.state.or.ust Oregon Economic & Community Development Department Summary of Award Project Number 806003 Recipient City of Ashland Project Name Ashland -Jefferson & Washington Street Improvements Award from Oregon Economic & Community Development Department: Application Award Department Funds 100% Special Public Works Fund (SPWF)- Interim Loan $500,000 SPWF - Bond Loan $400,000 SPWF- Collateral Loan .$ 100,000 SPWF - Grant $400,000 Non-Department Funds Total Project Cost $ 900,000 General Description of (Financing Program) (type) Loan: est Rate: 3.77 % imum Term of Loan: Max 2.5 years The full terms and conditions for the loan will be contained in the contract. Approved Project Description: Construction of 650 feet of 28 foot wide street includes: excavation, utilities, sub-base, level 2 HMAC (Hot Mixed Asphalt and Concrete), a 60-80 foot wide box culvert, 5 foot sidewalks, curb and gutter and storm drain installation, street lighting and pedestrian amenities In addition to the standard terms and conditions placed on funding from the above program(s), the following terms and conditions have been placed on the award: Conditions of Award: Based upon the following analysis, the award recommended above should be subject to the following conditions: I. General Fund as a Source of Repayment The Loan shall be payable from the general fund of the Borrower and shall be a full faith and credit obligation of the Borrower which is payable from any taxes which the Borrower may levy within the limitations of Article XI of the Oregon Constitution. Interim Financing I. General Fund as a Source of Repayment The Loan shall be payable from the general fund of the Borrower and shall be a full faith and credit obligation of the Borrower which is payable from any taxes which the Borrower may levy within the limitations of Article XI of the Oregon Constitution. II. Security - Refunding Proceeds A. The principal of and interest on the Loan shall be payable from the Refunding Proceeds. The Borrower hereby grants to the State a security interest in and irrevocably pledges the Refunding Proceeds to pay all of the obligations owed by the Borrower to the State under the Loan Agreement. The Refunding Proceeds pledged above pursuant to Section II. A. and hereafter received by the Borrower shall immediately be subject to the lien of such pledge without physical delivery or further act, and the lien of the pledge shall be superior to all other claims and liens whatsoever, to the fullest extent permitted by ORS 288.594. The Borrower hereby represents and warrants that the pledge of the Refunding Proceeds hereby made by the Borrower complies with, and shall be valid and binding from the date of this Loan Agreement pursuant to, ORS 288.594 CITY OF Council Communication ASHLAND Federal Appropriations Meeting Date: February 6, 2007 Primary Staff Contact: Ann Seltzer Department: Administration ann @ashland.or.us Contributin;Nutes ts: Secondary Staff Contact: Approval: Estimated Statement: Staff received the federal appropriation request fonns last week. The deadline to submit 2008 requests is February 14. Staff is asking council if the requests submitted last year should be submitted again with support from the Ashland United Front or if no requests should be submitted this year. Staff Recommendation: Resubmit the federal appropriation requests from last year. Background: The City of Ashland has submitted federal appropriation requests for three years with the support of the Ashland United Front including the Chamber of Commerce, Rogue Valley Transit District, Southern Oregon University, Community Works, the Ashland School District and the Ashland Community Hospital. The requests are identified by the Ashland United Front as issues most critical to the entire community rather than importance to a single agency. The Ashland United Front has received considerable praise from the Oregon delegation as an example of a community working together for common interest. Through the efforts of the United Front, $14 million was secured for the forensic laboratory in Ashland and $250,000 for a park and ride facility. Council Options: • Direct staff to submit the same requests as last year with support from Ashland United Front. • Do not submit federal appropriation requests this year. Attachments: • 2007 Federal Appropriation Requests 1 FY 2007-OREGON FEDERAL APPROPRIATIONS REQUEST U.S. Senator Gordon H. Smith Please fill in ALL applicable fields! Name of Project: Land purchase for construction of Workforce Housing, Ashland OR Location: County(s : Jackson I City: Ashland Reg esting Organization: Ashland United Front Project Description: The Ashland United Front, comprised of the Ashland School District,Ashland Chamber of Commerce, Community Works, Ashland Community Hospital and the City of Ashland, is requesting$2.2 million to purchase land for the development of two 28- unit housing developments for qualified low-moderate-income Ashland residents. There are fewer than eight acres of developable land available in the city's highest residential zoning category, which has a base density of 20 units per acre. The unit to land ratio used by the Oregon housing and community services when evaluating the viability to develop low-income housing is approximately$20,000 per unit. In Ashland the average unit to land cost ratio is upwards of$45,000. The average cost of land per acre within the city limits for high-density multifamily development exceeds$700,000. The high cost of land significantly undermines the ability of nonprofit housing providers to create affordable housing. Providers in our region have all consistently cited the availability and cost of property in Ashland as the major impediment to developing needed affordable housing. Because of the scope of the project,partnering agencies could include a host of local nonprofits:Habitat for Humanity,Rogue Valley Community Development Commission,Ashland Community Land Trust,ACCESS Inc., and the Housing Authority of Jackson County. Further,again because of the scope of the project, it is likely that it would be a candidate for the federal low-income tax credit program administered through Oregon Housing and Community Services. Fair market rent as defined by the Housing and Urban Development is no more than 30%of a person's monthly income. The average rent for a two bedroom apartment in Ashland is$610. To afford that rent, an employee must earn $24,400 per year or about $11.71 per hour. A fulltime minimum wage job pays $13,400 per year. On that income a household could afford rent of about$340 per month. Lack of workforce housing directly affect the economic health of our community. Hospital employees,university staff, small business employees, city staff,school teachers and others cannot afford to live in the town in which they work. The potential of losing these employees to other communities is great. In addition,the lack of affordable housing is a primary concern of businesses looking to locate in our area. How will the funds be spent? Please provide a detailed description of how the funds will be used and indicate whether funds will go toward construction,planning,or programming. The funds will be used to purchase land for construction. Bill or Report Language Requested(if applicable,please provide language requested and indicate whether you are seeking bill or report language):N/A Anticipated Appropriations Bill and Account: Federal Dollars Requested in FY07 from the account list above: o Is this a multi-year project? No o Will you be requesting funding in future ears? No Are you seeking FY07 funds through other federal accounts? If yes,please specify account(s). No Previous Federal Appropriations(Please indicate which appropriations bill(s) and year(s)received): None Have you pursued federal grant funding? If yes,which Department and program? No Non-federal Contribution (Please identify funding amount and who is contributing): The City of Ashland has$1.3 million in dedicated funds for developing workforce housing and the City funds a dedicated staff person for workforce housing at$60,000 per year. Total Cost of Project: $7.5 million($2.2 land acquisition and$5.3 million in construction for 56 units at $94,000 each Amount for this project in President's FY07 Budget Request: None Authorizing Statute(if authorized): Local Contact: - • Name: Ann.Seltzer,Management Analyst, City of Ashland • Address: 20 East Main Street, City Hall • City, State,Zip: Ashland,OR 97520 • Telephone: 541-552-2106 • Fax 541-488-5311 • Email: ann ashland.or.us DC Contact(if applicable):None • Name: • Address: • City, State,Zip: • Telephone: • Fax: • Email: Other Organizations/Community Leaders who have provided letters in support of this project (please provide letters as PDF attachments or via United States Postal Service): • Organization: Ashland Chamber of Commerce • Contact: Sandra Slattery,Executive Director • Telephone: 541-482-3486 • Organization: Ashland Community Hospital • Contact: Mark Marchetti, Director • Telephone: 541-482-2441 • Organization: Southern Oregon University • Contact: Elisabeth Zinser, President • Telephone: 541-552-6111 • Organization: Community Works • Contact: Arnie Green, Director • Telephone: 541-779-2393 x 227 o Organization: City of Ashland o Contact: John W. Morrison,Mayor o Telephone: 541-488-6002 o Organization: Ashland School District o Contact: Juli DiChiro, Superintendent o Telephone: 541-482-2811 o Organization: Habitat for Humanity o Contact: o Telephone: o Organization: ACCESS Inc. o Contact: o Telephone: o Organization: Ashland Community Land Trust o Contact: o Telephone: o Organization: Housing Authority of Jackson County o Contact: o Telephone: o Organization: Rogue Valley Community Development Commission o Contact: o Telephone: Please email completed form to: APPROPRIATIONS n;GSMI tH.SENATE.GOV Mail supporting materials(if any)to: Senator Gordon Smith Attn: Appropriations 121 SW Salmon Street,Suite#1250 Portland, Oregon 97204 Ashland United Front FY 2007 - OREGON FEDERAL APPROPRIATIONS REQUEST U.S. Senator Gordon H. Smith Please fill in ALL applicable fields! Name of Project: Railroad Crossing Safety Im rovements Location: Coun s : Jackson Ctr : Ashland Reg esting Organization: Ashland United Front Project Description: The Ashland United Front comprised of the Ashland School District, Ashland Chamber of Commerce, Community Works,Ashland Community Hospital, Southern Oregon University and the City of Ashland is requesting$2.4 million for safety improvements to five railroad crossings in Ashland. On January 25, 2006 a vehicle was struck by a train in Ashland. The driver was severely injured and is still undergoing corrective surgeries. Railroad tracks bisect our community and cross nine primary streets. The volume of traffic at those intersections including automobiles,pedestrians and bicyclists has steadily increased over the years. These roads lead to housing developments,retail stores and recreation areas. Two of the crossings are located on either side of Ashland Middle School. One crossing is adjacent to emergency services, one crossing bisects a four way intersection, one crossing is adjacent to university student housing with numerous young children in the area. Many of the crossings are impassable for wheelchairs, strollers and bicycles due to eroded surfaces and narrow widths. Average daily traffic counts at each of the crossings have increased significantly and are expected to double in the next 20 years. The maximum train speed is between 20mph and 30mph through town. The crossing adjacent to the Ashland Middle School is 30mph. Oregon receives approximately$2 million per year in federal funds for the railroad crossing improvements. There are more than 900 rail crossings in Oregon and the majority of these funds are allocated to more densely populated areas of the State. Ashland has been unsuccessful in receiving FE WA or ODOT funding for this project. .How will the funds be spent? Please provide a detailed description of how the funds will be used and indicate whether funds will go toward construction, Ip annine, or programming. There are nine at-grade railroad crossings in the city of Ashland—all located along a railroad corridor.owned and operated by Central Oregon and Pacific Railroad(CORP). Each of these crossings requires some type of upgrade and sever need major safety improvements. The project will focus on five of the crossings most hazardous to citizens. All funds will go towards construction. Improvements include surface replacement, widening to accommodate pedestrians and bicyclists,six safety gates, improved signage and visibility. Current estimated costs are$3.7 million in construction. The City of Ashland has$1.3 million dedicated to the project leaving a shortfall of$2.4 million. The railroad has no financial obligation to fund any of the improvements. All improvements are contracted by or performed by the railroad with ALL costs bom by the City. CORP is not required to seek competitive bids. COPRs only financial obligation is the maintenance of the items. The City has no input into the cost of the railroads work. Engineers have estimated an average cost of approximately$740,000 per crossing. Bill or Report Language Requested (if applicable, please provide language requested and indicate whether you are seeking bill or report language):N/A Anticipated Appropriations Bill and Account: Transportation Federal Dollars Requested in FY07 from the account list above: o Is this a multi-year.project? Yes o Will you be requesting funding in future ears? No I Ashland United Front Are you seeking FY07 funds through other federal accounts? If yes,please specify account(s).No Previous Federal Appropriations (Please indicate which appropriations bill(s)and year(s) received): No previous federal appropriations for this project. Have you pursued federal grant funding?If yes, which Department and program?The City has pursued funding through FHWA and ODOT over the years and has been unsuccessful. Non-federal Contribution (Please identify funding amount and who is contributing): Construction: $825 thousand(City of Ashland SDCs and Street Fees) Engineering: $150 thousand(City of Ashland engineering) Staff Costs:$50 thousand City of Ashland dedicated staff) Total non-federal contribution: $13 million Total Cost of Project: $3.7 Amount for this project in President's FY07 Budget Request: None Authorizing Statute(if authorized): Local Contact: • Name: Ann Seltzer,Management Analyst,City of Ashland • Address: 20 East Main Street City Hall • City, State,Zip: Ashland, OR 97520 • Telephone: 541-552-2106 o Fax: 541-488-5311 o Email: ann@ashland.or.us DC Contact(if applicable):NONE • Name: • Address: • City, State, Zip: • Telephone: • Fax: • Email: Other Organizations/Community Leaders who have provided letters in support of this project (please provide letters as PDF attachments or via United States Postal Service): o Organization: Ashland Chamber of Commerce o Contact: Sandra Slattery,Director o Telephone: 541-482-3486 o Organization: Southern Oregon University o, Contact: Elisabeth Zinser,President o Telephone: 541-552-6111 o Organization: City of Ashland o Contact: John W. Morrison,Mayor o Telephone: 5411188-6002 o Organization: Community Works • Contact Arnie Green,Director • Telephone 541-779-2393 x 227 • Organization Ashland School District • Contact Juli DiChim, Superintendent • Telephone 541-482-2811 • Organization Ashland Community Hospital • Contact Mark Marchetti, Director • Telephone 541-482-2441 Please email completed form to: APPROPRIATIONS mGSMITH.SENATE.GOV Mail supporting materials(if any)to: Senator Gordon Smith Attn: Appropriations 121 SW Salmon Street, Suite#1250 Portland, Oregon 97204 2 Ashland United Front FY 2007 - OREGON FEDERAL APPROPRIATIONS REQUEST U.S. Senator Gordon H. Smith Please fill in ALL applicable fields! Name of Project: Ashland Watershed Forest Resilient Proect Location: Count (s): Jackson Ci Ashland Reg esting Organization: Ashland United Front Project Description: The USDA Forest Service has proposed a Forest Resiliency Project on federal land to meet the urgent need for reduction of fire hazard in the Ashland Watershed and to protect the Values at Risk: water quality,protection of life and property,late- successional habitat, and wildlife transition corridor. Ashland United Front wants to ensure that this project receives full funding. The 16,000-acre Ashland Creek Watershed is the primary source of potable water for the city's 20,000 citizens. The City's Wildland Urban Interface(WUI)extends 1 1/2 miles into the watershed. The 2003 Upper Bear Assessment describes existing data on the watershed and outlines an integrated approach to watershed management. The Ashland Forest Resiliency Project DEIS was prepared in 2005 pursuant to Sections 103 and 104 of the Healthy Forests Restoration Act. Both action alternatives require on-site pre-implementation data collection,particularly vegetation data and site&stand evaluation data to verify satellite images.The data is essential to design of site-specific - prescriptions and operational plans during project activity. Based on the established working relationship with the City, the Forest Service proposes multi-party monitoring[under HFRA section 102(g)(5)] so that adaptive management can occur. Multi-party monitoring is subject to available funding and the ability of the City to contribute funds and in-kind services. This project will ensure that the City and the Forest Service each have adequate funding for these integrated management activities to proceed in a timely manner in fiscal year 2007. How will the funds be spent? Please provide a detailed description of how the funds will be used and indicate whether funds will go toward construction,planning, or programmine. All funds are for field personnel. Bill or Report Language Requested (if applicable,please provide language requested and indicate whether you are seeking bill or report language):N/A Anticipated Appropriations Bill and Account: DOI USDA Forest Service Fire Management Federal Dollars Requested in FY07 from the account list above: $1.5 million o Is this a multi-year project? Yes o Will you be requesting funding in future ears? possibly Are you seeking FY07 funds through other federal accounts? If yes,please specify account(s).No Previous Federal Appropriations(Please indicate which appropriations bill(s)and year(s)received): No previous federal appropriations for this prej.ect. Have you pursued federal grant funding?If yes,which Department and program?National Fire Plan(BLM) and USDA Title III funds are not available for this purpose. City has used these in the past for private lands interface work and education activities. Non-federal Contribution (Please identify funding amount and who is contributing): $40,000/yr=Ashland City Public Works staff $80,000/yr=Ashland Water Fund to Forest Interface 200 hours local volunteer time/yr Joint Ashland-U.S. Geological Survey stream monitoring project Total local match=$120,000 per year,plus in-kind services. Total non-federal contribution: $120,000 1 r 1 Ashland United Front Total Cost of Project: $1.5 million Amount for this project in President's FY07 Budget Request: None Authorizing Statute(if authorized): Healthy Forests Restoration Act,National Fire Plan Local Contact: • Name: Ann Seltzer, Management Analyst, City of Ashland • Address: 20 East Main Street, City Hall • City, State,Zip: Ashland, OR 97520 • Telephone: 541-552-2106 • Fax: 541-488-5311 o , Email: ann.a ashland.or.us DC Contact(if applicable): NONE • Name: • Address: • City, State,Zip: • Telephone: • Fax: • Email: Other Organizations/Community Leaders who have provided letters in support of this project (please provide letters as PDF attachments or via United States Postal Service): • Organization: Ashland Chamber of Commerce • Contact: Sandra Slattery,Director • Telephone: 541-482-3486 • Organization: Southern Oregon University • Contact: Elizabeth Zinser, President • Telephone: 541-552-6111 • Organization: City of Ashland • Contact: John Morrison,Mayor • Telephone: 541-488-6002 • Organization: Community Works • Contact Arnie Green, Director • Telephone 541-779-2393 x 227 • Organization Ashland School District • Contact Juh DiChiro, Superintendent • Telephone 541-482-2811 • Organization Ashland Community Hospital • Contact Mark Marchetti,Director • Telephone 541-482-2441 Please email completed form to: APPROPRIATIONS )GSMITII.SENATE.GOV Mail supporting materials(if any)to: Senator Gordon Smith Attn: Appropriations 121 SW Salmon Street,Suite#1250 Portland,Oregon 97204 2 FY 2007 - OREGON FEDERAL APPROPRIATIONS REQUEST U.S. Senator Gordon H. Smith Please fill in ALL applicable fields! Name of Project: Evidenced Based Research for Hi h Risk Youth Location: Count (s): Jackson Cit Ashland Requesting Organization: Ashland United Front Project Description: This partnership wisely uses community resources, in contexts where the results matter immediately to individual young people. Southern Oregon University will conduct a literature review of evidence-based models and use its analysis as the basis to develop a "wrap-around"system of services with providers.The providers will include the Ashland School District, the Ashland Police Department, the Ashland Chamber of Commerce(providing business community mentors and vocational opportunities), Southern Oregon University(providing a cadre of student mentors), On Track(non- profit provider of alcohol and drug treatment services),and Community Works(non- profit social services agency providing project coordination, mental health treatment, and case management). The services will be provided to two cohorts of children and families. One cohort will be an Ashland High School alternative classroom;these students have had significant difficulty making progress in the mainstream classrooms. The second cohort will be students at a residential treatment facility located in Ashland; these students represent some of the more troubled youth in Southern Oregon; they are referred by the Oregon Youth Authority and the Oregon Department of Human Services. Southern Oregon University will perform outcome evaluations for the project. There is a nation wide effort to improve the efficacy of programs paid for with public funds. These efforts seek to define proven practices and only provide funding for those using these"evidence based"models. Since the cost of providing two independent research studies is high only a few models have been designated as"evidence based". Further, since these are often proprietary the cost of implementing these models is also high. The goal of this project is to demonstrate the efficacy of a model that uses the basic ingredients of a variety of models. This will reduce the costs and develop a base- line of data that can be used by government agencies, non profits,and faith based groups across the country. How will the funds be spent? Please provide a detailed description of how the funds will be used and indicate whether funds will go toward construction, lap nning, or programming. Funding will be used for research and programming. Salaries and Benefits: $442,056.50 Materials, Services and Administrative Expenses: $157,943.50. This proposal will fund all or part of 16 salaries. A complete budget breakdown is attached. These funds will be paying for staff positions at Community Works,On Track, the City of Ashland, Southern Oregon University,and the Chamber of Commerce. Bill or Report Language Requested (if applicable,please provide language requested and indicate whether you are seeking bill or report language): n/a Anticipated Appropriations Bill and Account: In 2006 this proposal was put into the Labor and Education Appropriations Bill. After some discussion with Congressional staff it might be better placed in the Justice Appropriations Bill. Federal Dollars Requested in FY07 from the account list above: $600,000 • Is this a multi-year project? Yes • Will you be requesting funding in future ears? No Are you seeking FY07 funds through other federal accounts? If yes,please specify account(s).No Previous Federal Appropriations(Please indicate which appropriations bill(s)and year(s)received):None . received but it was requested in the Labor and Education Appropriations Bill. Have you pursued federal grant funding?If yes, which Department and program?No Non-federal Contribution (Please identify funding amount and who is contributing): We have identified $2,881,962 in matching funds. However,most of these funds are received through state agencies and are commingled with federal funds. It would take some time to break out the state number but it could be done if necessary. Total Cost of Project: $2, 881,962 +$600,000=$3,481,962 Amount for this project in President's FY07 Budget Request: None Authorizing Statute (if authorized): n/a Local Contact: • Name: Ann Seltzer,Management Analyst, City of Ashland • Address: 20 East Main Street,City Hall • City, State, Zip: Ashland, OR 97520 • Telephone: 541-552-2106 • Fax: 541-488-5311 • Email anno)ashland.or.us DC Contact(if applicable): • Name: • Address: • City, State, Zip: • Telephone: • Fax: • Email: Other Organizations/Community Leaders who have provided letters in support of this project (please provide letters as PDF attachments or via United States Postal Service): o Organization: Ashland Chamber of Commerce o Contact: Sandra Slattery o Telephone: 541-482-3486 o Organization: Ashland Community Hospital o Contact: Mark Marchetti,Director o Telephone: 541-482-2441 o Organization: Southern Oregon University o Contact: Elisabeth Zinser,President o Telephone: 541-552-6111 o Organization: Ashland School District o Contact: Juli Di Chim,Superintendent o Telephone: 541-482-2811 o Organization: Community Works o Contact: Arnie Green,Director o Telephone: 541-779-2393 x 227 o Organization: Rogue Valley Transit District o Contact: Peter Jacobsen o Telephone: 541-779-5821 o Organization: City of Ashland o Contact: John W. Morrison,Mayor o Telephone: 541-488-6002 Please email completed form to: APPROPRIATIONS(fuGSMITH.SENATE.GOV Mail supporting materials(if any)to: Senator Gordon Smith Attn: Appropriations 121 SW Salmon Street, Suite#1250 Portland, Oregon 97204 Ashland United Front _ OREGON HOUSE DELEGATION APPROPRIATIONS REQUEST FORM FISCAL YEAR 2007 Project Title (e.g. Interstate 5 Trade Corridor): Land for construction of Workforce Housing, Ashland Oregon Grant recipient name and address (if the project is to be carried out in location that is different from the grantee address, please provide that city and state): Ashland United Front Contact name, phone number, and e-mail: Ann Seltzer, Management Analyst City of Ashland 541-552-2106 ann @ashland.or.us Describe the organization's main activities, and whether it is a public, private non-profit, or private for-profit entity: The Ashland United Front is comprised of the Ashland School District, Ashland Community Hospital, City of Ashland, Community Works and the Ashland Chamber of Commerce. Briefly describe the activity or project for which funding is requested (please keep to 250 words or less, subcommittee online submission will not accept more): Land purchase for construction of workforce housing in Ashland The Ashland United Front intends to purchase land for the development of two 28—unit housing developments for qualified low- moderate-income Ashland residents. There are fewer than eight acres of developable land available in the city's highest residential zoning category, which has a base density of 20 units per acre. The unit to land ratio used by the Oregon housing and community services when evaluating the viability to develop low-income housing is approximately $20,000 per unit. In Ashland the average unit to land cost ratio is upwards of$45,000. The average cost of land per acre within the city limits for high-density multi-family development exceeds $800,000. The high cost,of land significantly undermines the ability of nonprofit housing providers.to create affordable housing. Providers in our region have all consistently cited the availability and cost of property in Ashland as the major impediment to developing needed affordable housing. Because of the scope of the project, partnering agencies could include a host of local nonprofits: Habitat for Humanity, Rogue Valley Community Development Commission, Ashland Community Land Trust, ACCESS Inc., and the Housing Authority of Jackson County. Further, again because of the scope of the project, it is likely that it would be a candidate for the federal Page 1 of Ashland United Front low-income housing tax credit (LIHTC) program administered through Oregon Housing and Community Services. Fair market rent as defined by the Housing and Urban development is no more than 30% of a person's monthly income. The average rent for a two bedroom apartment in Ashland is $610. To afford that rent, an employee must earn $24,400 per year or about $11.71 per hour. A fulltime minimum wage job pays $13,400 per year. On that income a household could afford rent of about $340 per month. Lack of workforce housing directly affects the economic health of our community. Hospital employees, university staff, small business employees, city staff, school teachers and others cannot afford to live in the town in which they work. The potential of losing these employees to other communities is great. In addition, the lack of affordable housing is a primary concern of businesses looking to re-locate to our area. Is this a new project? Developing workforce housing in Ashland has been a primary objective of the community for a number of years. A full time city employee is dedicated to furthering this objective. Description of project's legal authorization (e.g. Transportation Bill,Energy Bill, etc.): *Not all projects are legally authorized and authorization is not a prerequisite for funding N/A Federal agency and account from which funds are requested (Please be specific—e.g. Department of Housing and Urban Development, Economic Development Initiatives account): Housing and Urban Development What is the national significance of the project, and what specific federal responsibility does the funding of this project or activity advance? The President has addressed the importance of increasing home ownership nationwide. This project is consistent with the goal of HUD to provide housing benefits to low- and moderate- income households. Will funding also be sought by another Congressional Member? If so, who? The same appropriation request has been submitted to Senator Ron Wyden and Senator Gordon Smith. Page 2 of 4 Ashland United Front Funding Details 1. Total project cost: $7.2 million 11. FY 2007 federal request: $2.2 million Ill. Amounts of requests and funding in previous years (please specify if funding was requested from a different account/agency than the current request): The Ashland United Front requested $2 million for this project last year (2006 budget) but did not receive funding. Land values in Ashland have increased 12% in the last year, thus the increase to $2.2 million. IV. Amounts expected to be requested in future years: N/A V. Breakdown/budget of the amount you are requesting for this project in FY 2007. (e.g. salary $40,000; computer $3,000): Resources: Dedicated staff/salary $60,000 Dedicated city funds for developing workforce housing $1,300,000 Expenses: Land acquisition: $2,200,000 Construction: $5,300,000 (Approximately $94,000 per unit x 53 units) Total Budget: $7,500,000 VI. Description of local, regional and/or state financial support (i.e. funding commitments to match federal dollars (Please provide specific dollar amount or percentage)): City of Ashland (local) funds: $1,900,000 Oregon State Housing Trust Funds: TDB these funds cannot be applied for until after land is purchased Nonprofit housing developers/home sales Page 3 of 4 Ashland United Front VII. Please list public or private organizations that have supported/endorsed this project: Ashland School District Rogue Valley Community Development Ashland Chamber of Commerce Corporation Ashland Community Hospital Habitat for Humanity City of Ashland ACCESS Inc. Community Works Jackson County Housing Coalition Ashland Community Land Trust Housing Authority of Jackson County VIII. Is this project scalable? (i.e. if partial funding is awarded, will the recipient organization be able to use the funds in FV 2007?) YES Page 4 of 4 Ashland United Front i OREGON HOUSE DELEGATION APPROPRIATIONS REQUEST FORM FISCAL YEAR 2007 Project Title (e.g. Interstate 5 Trade Corridor): Railroad Crossing Safety Improvements ` Grant recipient name and address (if the project is to-be carried out in location that is different from the grantee address, please provide that city and state): Ashland United Front Contact name, phone number, and e-mail: Ann Seltzer, Management Analyst City of Ashland 20 East Main Street City Hall Ashland, OR 97520 541-552-2106 (work) 541-488-5311 (fax) Describe the organization's main activities, and whether it is a public, private non-profit, or private for-profit entity: The Ashland United Front is comprised of Ashland School District, Ashland Community Hospital, City of Ashland, Community Works and the Ashland Chamber of Commerce is an informal gathering of the primary community oriented organizations in town. We meet to discuss issues that are a concern and important to the entire community. We begin by asking ourselves what are the critical issues facing our community and how can we help. Briefly describe the activity or project for which funding is requested (please keep to 250 words or less, subcommittee online submission will not accept more): On January 25, 2006 a vehicle was struck by a train in Ashland. The driver was seriously injured and is still undergoing corrective surgeries. Railroad tracks bisect our community and cross nine primary streets. Traffic at those intersections has steadily increased over the years. These roads lead to housing developments, schools, retail stores and recreation areas. This project will focus on five crossings considered most hazardous to citizens. Two of the crossings are on either side of Ashland Middle School. One is adjacent to university housing an area with numerous children, one is adjacent to emergency services and one bisects a four way Page t of 3 Ashland United Front intersection. Many of the crossings are impassable for wheelchairs, strollers and bicycles due to eroded surfaces and narrow widths. Improvements include surface replacement, widening, six safety gates, improved signage and visibility. Estimated costs are $3.7 million. The railroad has no obligation to fund any of the improvements. Installation of the crossing gates, signals and concrete pad for pedestrians and cyclists crossing are contracted by or performed by the railroad with ALL costs born by the city. The City has no input into the costs of the railroad's work. The estimated average cost per crossing improvements is $740,000. Oregon receives approximately $2 million per year in federal funds for railroad crossing improvements. There are more than 900 rail crossing in Oregon and the majority of funds are allocated to densely populated areas of the State. Ashland has been unsuccessful in receiving FHWA or ODOT funding for this project. Is this a new project? This project has been a city council and community goal for many years. Description of project's legal authorization (e.g. Transportation Bill, Energy Bill, etc.): *Not all projects are legally authorized and authorization is not a prerequisite for funding N/A Federal agency and account from which funds are requested (Please be specific—e.g. Department of Housing and Urban Development, Economic Development Initiatives account): Transportation What is the national significance of the project, and what specific federal responsibility does the funding of this project or activity advance? Railroad crossing safety improvements is a primary focus of the Federal Transit Authority and the Federal Railroad Administration. Will funding also be sought by another Congressional Member? If so, who? Yes. Senator Gordon Smith and Senator Ron Wyden Page 2 of 3 Ashland United Front Funding Details I. Total project cost: $3.7 million II. FY 2007 federal request: $2.4 million III. Amounts of requests and funding in previous years (please specify if funding was requested from a different account/agency than the current request): None IV. Amounts expected to be requested in future years: None V. Breakdown/budget of the amount you are requesting for this project in FY 2007. (e.g. salary $40,000; computer $3,000): $3.49 million = Construction $154 thousand =Engineering $50 thousand =Dedicated Staff Total Budget = $3.7 million VI. Description of local, regional and/or state financial support (i.e. funding commitments to match federal dollars (Please provide specific dollar amount or percentage)): $825 thousand = City of Ashland (local in SDCs and Street Fees) $154 thousand = City of Ashland (local for engineering) $50 thousand = City of Ashland (local dedicated staff) Total local match = $1.3 million VII. Please list public or private organizations that have supported/endorsed this project: Ashland School District, Ashland Community Hospital, City of Ashland, Community Works, Ashland Chamber of Commerce, Southern Oregon University VIII. Is this project scalable? (i.e. if partial funding is awarded, will the recipient organization be able to use the funds in FY 2007?) YES Page 3 of 3 Ashland United Front _ OREGON HOUSE DELEGATION APPROPRIATIONS REQUEST FORM FISCAL YEAR 2007 Project Title (e.g. Interstate 5 Trade Corridor): Ashland Watershed Forest Resiliency Project Grant recipient name and address (if the project is to be carried out in location that is different from the grantee address, please provide that city and state): Ashland United Front Contact name, phone number, and e-mail: Ann Seltzer, Management Analyst, City of Ashland 20 East Main Street City Hall Ashland, OR 97520 541-552-2106 (work) 541-488-5311 (fax) ann @ashland.or.us Describe the organization's main activities, and whether it is a public, private non-profit, or private for-profit entity: The Ashland United Front is comprised of Ashland School District, Ashland Community Hospital, City of Ashland, Community Works and the Ashland Chamber of Commerce. United Front is an informal gathering of the primary community-oriented organizations in town. We meet to discuss issues that are of concern and important to the entire community. We begin by asking ourselves what are the critical issues facing our community and how can we help. The City of Ashland will act as the recipient for this request. Briefly describe the activity or project for which funding is requested (please keep to 250 words or less, subcommittee online submission will not accept more): The USDA Forest Service has proposed a forest resiliency project on federal land to meet the urgent need for reduction of fire hazard in the Ashland Watershed and to protect the Values at Risk: water quality, protection of life and property, late-successional habitat, and wildlife transition corridor. Ashland United Front wants to ensure that this project receives full funding. The 16,000-acre Ashland Creek Watershed is the primary source of potable water for the city's 20,000 citizens. The City's Wildland Urban Interface (WUI) extends 1 1/2 miles into the Page 1 of 3 Ashland United Front watershed. The 2003 Upper Bear Assessment describes existing data on the watershed and outlines an integrated approach to watershed management. The Ashland Forest Resiliency Project DEIS was prepared in 2005 pursuant to Sections 103 and 104 of the Healthy Forests Restoration Act. Both action alternatives require on-site pre- implementation data collection, particularly vegetation data and site & stand evaluation data to verify satellite images. The data is essential to design of site-specific prescriptions and operational plans during project activity. Based on the established working relationship with the City, the Forest Service proposes multi- party monitoring [under HFRA section 102(g)(5)] so that adaptive management can occur. Multi-party monitoring is subject to available funding and the ability of the City to contribute funds and in-kind services. This project will ensure that the City and the Forest Service each have adequate funding for these integrated management activities to proceed in a timely manner in fiscal year 2007. Is this a new project? Yes. This project has been a city council and community goal for many years. USDA FS Ashland Forest Resiliency, DEIS June 2005, FEIS and ROD expected in 2006. Description of project's legal authorization (e.g. Transportation Bill, Energy Bill, etc.): *Not all projects are legally authorized and authorization is not a prerequisite for funding Healthy Forests Restoration Act of 2003, National Fire Plan. Federal agency and account from which funds are requested (Please be specific—e.g. Department of Housing and Urban Development, Economic Development Initiatives account): Primary: DO] USDA Forest Service Fire Management Appropriations, (HR2361 in fiscal 2006). Secondary: Energy and Water Development (U.S. EPA) What is the national significance of the project, and what specific federal responsibility does the funding of this project or activity advance? This activity advances the commitment of the Environmental Protection Agency to protect source water from contamination. The Ashland Forest Resiliency Project is a HFRA project to reduce the risk of catastrophic fire in a municipal water supply watershed and in the Wildland Urban Interface between the City of Ashland and the Rogue River National Forest, Ashland Ranger District. Further, the Ashland Watershed is a key component of the Transition Wildlife Corridor between the Klamath-Siskiyou and the Cascade Mountains, and hosts a number of ESA and NWFP protected species. Will funding also be sought by another Congressional Member? If so, who? Yes. Senator Gordon Smith and Senator Ron Wyden Page 2 of 3 Ashland United Front Funding Details 1. Total project cost: $1.5 million IL FY 2007 federal request: $1.5 million 111. Amounts of requests and funding in previous years (please specify if funding was requested from a different account/agency than the current request): None IV. Amounts expected to be requested in future years: None V. Breakdown/budget of the amount you are requesting for this project in FY 2007. (e.g. salary $40,000; computer $3,000): All funds are for personnel costs. VI. Description of local, regional and/or state financial support (i.e. funding commitments to match federal dollars (Please provide specific dollar amount or percentage)): $40,000/yr= Ashland City Public Works staff $80,000/yr = Ashland Water Fund to Forest Interface 200 hours local volunteer time/yr Joint City of Ashland-U.S. Geological Survey stream monitoring project Total local match = $120,000 per year, plus in-kind services VII. Please list public or private organizations that have supported/endorsed this project: Ashland School District, Ashland Community Hospital, City of Ashland, Community Works, Ashland Chamber of Commerce, Southern Oregon University VIII. Is this project scalable? (i.e. if partial funding is awarded,will the recipient organization be able to use the funds in FY 2007?) YES Page 3 of 3 Ashland United Front OREGON HOUSE DELEGATION APPROPRIATIONS REQUEST FORM FISCAL YEAR 2007 Project Title (e.g. Interstate 5 Trade Corridor): Evidenced Research for High Risk Youth Grant recipient name and address (if the project is to be carried out in location that is different from the grantee address, please provide that city and state): This proposal is being submitted under the auspices of the United Front which is a coalition comprised of the Ashland Community Hospital, Ashland School District, Community Works, Southern Oregon University, Ashland Chamber of Commerce, and the City of Ashland. For the purpose of this proposal the Ashland School District will be the lead agency for the project. Contact name, phone number, and email: Although the school district will be the administrative and fiscal lead Amie Green the Executive Director of Community Works will be the contact person. His phone # is 541-779-2393 x227. His email is ag=reen((-�,.comrnunity-works.or . Juli DiChiro is the Superintendent of the Ashland School District. Her phone# is 541-482-2811. Her email is juli.dichiro n,ashland.k]2,or.us. Describe the organization's main activities, and whether it is a public, private non-profit, or private for-profit entity: The Ashland School District is a public agency that provides K— 12 education. Briefly describe the activity or project for which funding is requested (please keep to 250 words or less, subcommittee online submission will not accept more): This partnership wisely uses community resources, in contexts where the results matter immediately to individual high risk young people. Southern Oregon University will conduct a literature review of evidence-based models and use its analysis as the basis to develop a"wrap- around" system of services with providers. The providers will include the Ashland School District, the Ashland Police Department, the Ashland Chamber of Commerce (providing business community mentors and vocational opportunities), Southern Oregon University (providing a cadre of student mentors), On Track (non-profit provider of alcohol and drug treatment services), and Community Works (non-profit social services agency providing project coordination, mental health treatment, and case management). Page I of Ashland United Front The services will be provided to two cohorts of children and families. One cohort will be an Ashland High School alternative classroom; these students have had significant difficulty making progress in the mainstream classrooms. The second cohort will be students at a residential treatment facility located in Ashland; these students represent some of the more troubled youth in Southern Oregon; they are referred by the Oregon Youth Authority and the Oregon Department of Human Services. Southern Oregon University will perform outcome evaluations for the project. Is this a new project?: This is a new project. Description of project's legal authorization: n/a Federal agency and account from which funds are requested: There are rationales for the Department of Justice under the auspices of delinquency prevention, the Department of Health and Human Services under its mental health or alcohol/drug treatment programs, or the Department of Education under its special education program. Last year it was placed in the Labor and Education Appropriations bill. Sen. Smith's and Rep. Walden's staff have suggested it might have a better chance in the Justice Appropriations Bill. What is the national significance of the project, and what specific federal responsibility does the funding of this project or activity advance?: There is a nation wide effort to improve the efficacy of programs paid for with public funds. These efforts seek to define proven practices and only provide funding for those using these "evidence based"models. Most of these models are developed around single issues such as drug/alcohol abuse, delinquency prevention, mental disturbances, etc. This research will provide a comprehensive model for children and families with multiple needs. Since the cost of providing independent research studies is high only a few models have been designated as "evidence based". Further, since these are often proprietary the cost of implementing these models is also high. The goal of this project is to demonstrate the efficacy of a comprehensive "wrap around"model that uses the basic ingredients of a variety of evidence based practices. This will reduce the costs and develop a base-line of data that can be used by government agencies, non profits, and faith based groups across the country. Will funding also be sought by another Congressional Member? If so,who?: Under the auspices of the United Front this proposal will be taken to Senators Smith and Wyden. Page 2 of 3 Ashland United Front Funding Details 1. Total project cost: $2,881,962 II. FY 2006 federal request: $600,000 III. Amounts of requests and funding in previous years (please specify if funding was requested from a different account/agency than the current request): N/A IV. Amounts expected to be requested in future years: None V. Break down/budget of the amount you are requesting for this project in FY 2006. (example: salary $40,000; computer $3,000): Salaries and Benefits: $442,056.50 Materials, Services and Administrative Expenses: $157,943.50. This proposal will fund all or part of 16 salaries. A complete budget breakdown is attached. These funds will be paying for staff positions at Community Works, On Track, the City of Ashland, Southern Oregon University, and the Chamber of Commerce. VI. Description of local, regional and/or state support (i.e. funding commitments to match federal dollars and demonstrations of public or private sector support): The services to the Community Works Lithia Springs Cohort are supported by approximately $1.5 million in a combination of State and Federal funds. The services to the Ashland High School Cohort are supported by $60,000 in State and Federal Educational funds. The Chamber of Commerce will be providing approximately $4,800 and the City of Ashland will be providing 53,500 in matching support for Materials, Services and Administrative Expenses. Page 3 of 3 FY 2007 - OREGON FEDERAL APPROPRIATIONS REQUEST U.S. Senator Ron Wyden Please fill in ALL applicable fields! Name of Project: -Land Purchase for construction of workforce housing,Ashland, OR Location: County(s): Jackson Count City: Ashland, Oregon Requesting Organization: Ashland United Front Project Description: The Ashland United Front, comprised of the Ashland School District, Ashland Chamber of Commerce, Community Works,Ashland Community Hospital and the City of Ashland, is requesting$2.2 million to purchase land for the development of two 28- unit housing developments for qualified low- moderate-income Ashland residents. There are fewer than eight acres of developable land available in the city's highest residential zoning category, which has a base density of 20 units per acre. The unit to land ratio used by the Oregon housing and community services when evaluating the viability to develop low-income housing is approximately$20,000 per unit. In Ashland the average unit to land cost ratio is upwards of$45,000. The average cost of land per acre within the city limits for high-density multifamily development exceeds$700,000. The high cost of land significantly undermines the ability of nonprofit housing providers to create affordable housing. Providers in our region have all consistently cited the availability and cost of property in Ashland as the major impediment to developing needed affordable housing. Because of the scope of the project,partnering agencies could include a host of local nonprofits:Habitat for Humanity,Rogue Valley Community Development Commission, Ashland Community Land Trust,ACCESS Inc.,and the Housing Authority of Jackson County. Further, again because of the scope of the project, it is likely that it would be a candidate for the federal low-income tax credit program administered through Oregon Housing and Community Services. Fair market rent as defined by the Housing and Urban Development is no more than 30%of a person's monthly income. The average rent for a two bedroom apartment in Ashland is$610. To afford that rent, an employee must earn$24,400 per year or about $11.71 per hour. A fulltime minimum wage job pays$13,400 per year. On that income a household could afford rent of about$340 per month. Lack of workforce housing directly affect the economic health of our community. Hospital employees,university staff,small business employees, city staff, school teachers and others cannot afford to live in the town in which they work. The potential of losing these employees to other communities is great. In addition,the lack of affordable housing is a primary concern of businesses looking to locate in our area. How will the funds be spent? Please provide a detailed description of how the funds will be used and indicate whether funds will go toward construction,planning, or programming. The Funds will be used to purchase land for construction. Bill or Report Language Requested(if applicable,please provide language requested and indicate whether you are seeking bill or report language):N/A Anticipated Appropriations Bill and Account: Federal Dollars Requested in FY07 from the account listed above: • Is this a multi-year project?No • Will you be requesting funding in future ears?No Are you seeking FY07 funds through other federal accounts? If yes,please specify account(s). No. Previous Federal Appropriations(Please indicate which appropriations bill(s)and year(s)received): None. Have you pursued federal grant funding? If yes,which Department and program? No. Non-federal Contribution(Please identify funding amount and who is contributing): The City of Ashland has $1.3 million in dedicated funds for developing workforce housing and the City funds a dedicated staff person for workforce housing at$60,000 per year. Total Cost of Project: $7.5 million($2.2 land acquisition and$5.3 million in construction for 56 units at $94,000 each Amount for this project in President's FY07 Budget Request: None. Authorizing Statute if authorized): Local Contact: • Name: Ann Seltzer, Management Analyst, City of Ashland • Address: 20 East Main Street, City Hall • City, State, Zip: Ashland, OR 97520 • Telephone: 541-552-2106 • Fax: 541-488-5311 • Email: Ann Pashland.or.us DC Contact(if applicable):None. • Name: • Address: - • City, State, Zip: • Telephone: • Fax • Email: Other Organizations/Community Leaders who have provided letters in support of this project (please provide letters as PDF attachments or via United States Postal Service): o Organization: Ashland Chamber of Commerce o Contact: Sandra Slattery, Executive Director o Telephone: 541-482-3486 o Organization: Ashland Community Hospital o Contact: Mark Marchetti, Director o Telephone: 541-482-2441 o Organization: Southern Oregon University o Contact: Elisabeth Zinser, President o Telephone: 541-552-6111 o Organization: Community Works - o Contact: Arnie Green, Director o Telephone: 541-779-2393 x 227 o Organization: City of Ashland o Contact: John W. Morrison,Mayor o Telephone: 541-488-6002 o Organization: Ashland School District o Contact: Juli DiChiro, Superintendent o Telephone: 541-482-2811 o Organization: Habitat for Humanity o Contact: o Telephone: o Organization: ACCESS, Inc. o Contact: o Telephone: o Organization: Ashland Community Land Trust o Contact: o Telephone: o Organization: Housing Authority of Jackson County o Contact: o Telephone: o Organization: Rogue Valley Community Development Commission o Contact o Telephone: * How many jobs will be created by this project? What type of jobs? 200 Construction jobs. Please email the completed form to the appropriate Field Representative FV 2007 Transportation, Treasury, the Judiciary, Housing and Urban Development and Related Agencies (TTHUD) Subcommittee Appropriations Form Please enter in ALL FIELDS. MEMBER: Senator Ron Wyden Member Staff Contact(Name/Number): Molly McCarthy(Wyden) 541-858-5122 Agency: HUD Account: unknown Request Amount: $2.2 million President's Budget: $0.00 Enter a concise project name, followed by the state(200 character limit): Land purchase for the development two 28-unit low-moderate-income housing developments in Ashland,OR. Brief Project Description(750 words): The Ashland United Front intends to purchase land for the development of two 28-unit housing developments for qualified low- moderate-income Ashland residents. There are fewer than eight acres of developable land available in the city's highest residential zoning category,which has a base density of 20 units per acre. The unit to land ratio used by the Oregon Housing and Community Services when evaluating the viability to develop low-income housing is approximately$20,000 per unit. In Ashland the average unit to land cost ratio is upwards of$45,000. The average cost of land per acre within the city limits for high-density multi-family development exceeds$800,000. The high cost of land significantly undermines the ability of nonprofit housing providers to create affordable housing. Providers in our region have all consistently cited the availability and cost of property in Ashland as the major impediment to developing needed affordable housing. - The City of Ashland is an entitlement city and receives approximately$210,000 per year in Community Development Block Grant Funds(CDBG)from the department of Housing and Urban Development (HUD). 85% of the competitive CDBG funds are devoted to affordable housing with the remainder used to address homelessness. CDBG funds have enabled the City,to partner with the Ashland Community Land Trust(ACLT)and the Rogue Valley Community Development Corporation (RVCDC)to develop a total of 15 new affordable units,eight rentals and seven ownerships over the past year. Additionally the City has recently applied CDBG funds to purchase two parcels to enable the Rogue Valley Community Development Corporation to create 15 single-family town homes to benefit low and moderate-income households. These units are to be completed utilizing the US Department of Agriculture's Rural Development Self-Help program. Because of the scope of the project,partnering agencies can include a host of local nonprofits: Habitat for Humanity, Rogue Valley Community Development Commission,Ashland Community Land Trust,ACCESS Inc., and the Housing Authority of Jackson County. Further, again because of the scope of the project, it is likely that it would be a candidate for the federal low-income housing lax credit (LIHTC) program administered through Oregon Housing and Community Services. Fair market rent as defined by the Housing and Urban development is no more than 30% of a person's monthlyincome. The average rent for a two bedroom apartment in Ashland is$610..To afford that rent, an employee.must earn Ashland United Front Land purchase workforce housing continued Amount of anticipated non-federal match in 2007,prior years and future years(percent or dollar amount): Local match$1.5 million. Please identify any reason why the funding requested could not be obligated in full on the date of enactment of the Transportation,Treasure,the Judiciary,Housing and Urban Development and Related Agencies Appropriations Act: None If this is an EDI request,please identify the name of the grantee,project and location: Grantee: City of Ashland on behalf of the Ashland United Front Project Land purchase for the development two 28-unit low-moderate-income housing developments. Location: Ashland,Oregon If you are requesting bill or report language for this particular project or grant,please insert here: N/A If there is any other language requested that is unrelated to a grant or project,but related to a program under jurisdiction of this Subcommittee,please insert here:No Local Project Contact Person and Title: Ann J.Seltzer Organization: City of Ashland,OR Phone: 541-552-2106 Please note:The Subcommittee will not fund any EDI projects below$200,000. Like last year,the following activities will not be eligible for EDI funds:reimbursement of expenses(including debt services or retirements),transportation or road projects,expenses for program operations,homeland security or"first responder"projects,healthcare facilities,colleges and universities will only be funded under special circumstances. 3 FY 2007 - OREGON FEDERAL APPROPRIATIONS REQUEST U.S. Senator Ron Wyden Please fill in ALL applicable fields! Name of Project: Railroad Crossing Safety Im rovements Location: County(s): Jackson County Cit : Ashland, Oregon Requesting Organization: Ashland United Front Project Description: The Ashland United Front comprised of the Ashland School District, Ashland Chamber of Commerce, Community Works,Ashland Community Hospital, Southern Oregon University and the City of Ashland is requesting$2.4 million for safety improvements to five railroad crossings in Ashland. On January 25, 2006 a vehicle was struck by a train in Ashland. The driver was severely injured and is still undergoing corrective surgeries. Railroad tracks bisect our community and cross nine primary streets. The volume of traffic at those intersections including automobiles,pedestrians and bicyclists has steadily increased over the years. - These roads lead to housing developments, retail stores and recreation areas. Two of the crossings are located on either side of Ashland Middle School. One crossing is adjacent to emergency services, one crossing bisects a four way intersection, one crossing is adjacent to university student housing with numerous young children in the area. Many of the crossings are impassable for wheelchairs, strollers and bicycles due to eroded surfaces and narrow widths. Average daily traffic counts at each of the crossings have increased significantly and are expected to double in the next 20 years. The maximum train speed is between 20mph and 30mph through town. The crossing adjacent to the Ashland Middle School is 30mph. Oregon receives approximately$2 million per year in federal funds for the railroad crossing improvements. There are more than 900 rail crossings in Oregon and the majority of these funds are allocated to more densely populated areas of the State. Ashland has been unsuccessful in receiving FHWA or ODOT funding for this project. How will the funds be spent? Please provide a detailed description of how the funds will be used and indicate whether funds will go toward construction planning, or programming. There are nine at-grade railroad crossings in the city of Ashland—all located along a railroad corridor owned and operated by Central Oregon and Pacific Railroad(CORP). Each of these crossings requires some type of upgrade and sever need major safety improvements. The project will focus on five of the crossings most hazardous to citizens. All funds will go towards construction. Improvements include surface replacement,widening to accommodate pedestrians and bicyclists,six safety gates,improved signage and visibility. Current estimated costs are$3.7 million in construction. The City of Ashland has$1.3 million dedicated to the project leaving a shortfall of$2.4 million. The railroad has no financial obligation to fund any of the improvements. All improvements are contracted by or performed by the railroad with ALL costs.bom by the City. CORP is not required to seek competitive bids. COPRs only financial obligation is the maintenance of the items. The City has no input into the cost of the railroads work. Engineers have estimated an average cost of approximately$740,000 per crossing. Bill or Report Language Requested (if applicable,please provide language requested and indicate whether you are seeking bill or report language): N/A Anticipated Appropriations Bill and Account: Transportation Federal Dollars Requested in FY07 from the account listed above: o Is this a multi-year project? Yes o Will you be requesting funding in future ears? No Are you seeking FY07 funds through other federal accounts? If yes,please specify account(s). No. Previous Federal Appropriations (Please indicate which appropriations bill(s)and year(s)received): No previous federal appropriations for this project. Have you pursued federal grant funding? If yes, which Department and program? The City has pursued funding though FHWA and ODOT over the years and has been unsuccessful. Non-federal Contribution(Please identify funding amount and who is contributing): Construction: $825 thousand(City of Ashland SDCs and Street Fees) Engineering: $150 thousand(City of Ashland engineering) Staff Costs: $50 thousand(City of Ashland dedicated staff) Total non-federal contribution: $1.3 Million Total Cost of Project: $3.7 Million Amount for this project in President's FY07 Budget Request: None. Authorizing Statute if authorized): Local Contact: • Name: Ann Seltzer, Management Analyst, City of Ashland • Address: 20 East Main Street, City Hall • City, State,Zip: Ashland, OR 97520 • Telephone: 541-552-2106 • Fax: 541-488-5311 • Email: Ann ashland.or.us DC Contact (if applicable):None. • Name: • Address: • City, State, Zip: • Telephone: • Fax: • Email: Other Organizations/Community Leaders who have provided letters in support of this project (please provide letters as PDF attachments or via United States Postal Service): o Organization: Ashland Chamber of Commerce o Contact: Sandra Slattery,Executive Director o Telephone: 541-482-3486 o Organization: Ashland Community Hospital o Contact: Mark Marchetti, Director o Telephone: 541-482-2441 o Organization: Southern Oregon University o Contact: Elisabeth Zinser, President o Telephone: 541-552-6111 o Organization: Community Works o Contact: Arnie Green, Director o Telephone: 541-779-2393 x 227 o Organization: City of Ashland o Contact: John W. Morrison,Mayor o Telephone: 541-488-6002 o Organization: Ashland School District o Contact: Juli DiChiro, Superintendent o Telephone: 541-482-2811 * How many jobs will be created by this project? What type of jobs? 50 jobs (10 construction jobs per crossing) Please email the completed form to the appropriate Field Representative FY 2007 Transportation, Treasury, the Judiciary, Housing and Urban Development and Related Agencies (TTHUD) Subcommittee Appropriations Form Please enter in ALL FIELDS. MEMBER: Senator Ron Wyden Member Staff Contact (Name/Number): Molly McCarthy(Wyden) 541-858-5122 Agency: FRA Account: Request Amount $2.4 million President's Budget: $0.00 Enter a concise project name, followed by the state(200 character limit): Railroad Crossing Safety Improvements in Ashland Oregon Brief Project Description(750 words): There are nine at-grade railroad crossings in the City of Ashland—all located along a railroad corridor owned and operated by Central Oregon and Pacific Railroad(CORP). Each of these crossings requires some type of update and several need major safety improvement. This project focuses on five of the crossings considered most hazardous to citizens. Current estimated costs are$3.7 million in construction including engineering and staff. The railroad has no financial obligation to fund any of the improvements. Installation of the crossing gates,signals and concrete crossing surfaces for pedestrian and cyclists are all contracted by or performed by the railroad with ALL costs born by the City. CORP is not required to seek competitive bids and their only financial obligation is the maintenance of the items. The City has no input into the cost of the railroad's work and must pay all of the railroads costs including construction,oversight, flagging and administration. The average cost per crossing improvement is$740,000. Safety improvements include surface replacement,widening to accommodate pedestrians and bicyclists,six safety gates, improved signage and visibility. Oregon receives approximately$2 million per year in federal funds for railroad crossing improvements. There are more than 900 railroad crossings in Oregon and the majority of these funds are allocated to densely populated areas of the State. Ashland has been unsuccessful in receiving FHWA or ODOT funding for this project. On January 26,2006 a vehicle was struck by a train in Ashland. The driver survived but was in critical condition. Railroad tracks bisect our community and cross nine primary streets. The volume of traffic at those intersections, including automobiles,pedestrians and bicyclists has steadily increased over the years. These roads lead to housing. developments, retail stores and recreation areas. Two of the crossings are located on either side of the Ashland Middle School. One crossing is adjacent to an emergency services provider,one crossing bisects a four way intersection and one crossing is adjacent to university student housing with numerous young children in the area. Many of the crossings are impassable for wheelchairs,strollers and bicycles due to eroded surfaces and narrow widths. Average daily traffic counts at each of the crossings have increased significantly and are expected to increase by 65% in the next 20 years. The maximum train speed is between 20mph and 25 mph through Town. Ashland is an active and thriving community on both sides of the tracks and seeks all means of funding in order to ensure the safety of Ashland citizens. Additional Project Details(unlimited): 1 Railroad Crossing Safety Improvements continued Ashland United Front . . If this is an FAA request,list the Airport Name(as defined in FAA NP1AS): N/A If this is an FTA project,list the appropriate transit authority: N/A Specific amount received in prior year Transportation appropriations(by year if applicable): $0.00 Has the project previously received any federal, state,or private funding, including federal discretionary grants or state federal- aid highway or transit formula apportionment funding? YES or NO (circle one) If yes, how much, from what source, and when?(do not include Appropriations money) N/A If this is a transportation project,have you confirmed either with USDOT or a regional USDOT office that this project is eligible for funds provided under the requested account? N/A YES or NO (circle one) Other federal funds that have or will be committed to this project(TEA-21,other appropriations bills):None Amount of anticipated non-federal match in 2007,prior years and future years(percent or dollar amount): $13 million Please identify any reason why the funding requested could not be obligated in full on the date of enactment of the Transportation,Treasure,the Judiciary,Housing and Urban Development and Related Agencies Appropriations Act: None If this is an EDI request,please identify the name of the grantee,project and location:N/A If you are requesting bill or report language for this particular project or grant,please insert here: N/A If there is any other language requested that is unrelated to a grant or project,but related to a program under jurisdiction of this Subcommittee,please insert here: N/A Local Project Contact Person and Title: Ann Seltzer,Management Analyst Organization: City of Ashland Phone: 541-552-2106 Please note:The Subcommittee will not fund any EDI projects below$200,000. Like last year, the following activities will not be eligible for EDI funds: reimbursement of expenses(including debt services or retirements),transportation or road projects, expenses for program operations,homeland security or"first responder"projects,healthcare facilities, colleges and universities will only be funded under special circumstances. 2 FY 2007 - OREGON FEDERAL APPROPRIATIONS REQUEST U.S. Senator Ron Wyden Please fill in ALL applicable fields! Name of Project: Ashland Watershed Forest Resilient Pro�ect Location: Count (s): Jackson County Cit : Ashland, Oregon Requesting Organization: Ashland United Front Project Description: The USDA Forest Service has proposed a Forest Resiliency Project on federal land to meet the urgent need for reduction of fire hazard in the Ashland Watershed and to protect the Values at Risk: water quality,protection of life and property, late- successional habitat,and wildlife transition corridor. Ashland United Front wants to ensure that this project receives full funding. The 16,000-acre Ashland Creek Watershed is the primary source of potable water for the city's 20,000 citizens. The City's Wildland Urban Interface(WUI)extends 1 1/2 miles into the watershed. The 2003 Upper Bear Assessment describes existing data on the watershed and outlines an integrated approach to watershed management. The Ashland Forest Resiliency Project DEIS was prepared in 2005 pursuant to Sections 103 and 104 of the Healthy Forests Restoration Act. Both action alternatives require on-site pre-implementation data collection,particularly vegetation data and site &stand evaluation data to verify satellite images.The data is essential to design of site-specific prescriptions and operational plans during project activity. Based on the established working relationship with the City, the Forest Service proposes multi-party monitoring[under HFRA section 102(g)(5)] so that adaptive management can occur. Multi-party monitoring is subject to available funding and the ability of the City to contribute funds and in-kind services. This project will ensure that the City and the Forest Service each have adequate funding for these integrated management activities to proceed in a timely manner in fiscal year 2007- How will the funds be spent? Please provide a detailed description of how the funds will be used and indicate whether funds will go toward construction,planning,or proerammine. All funds are for field personnel. Bill or Report Language Requested (if applicable,please provide language requested and indicate whether you are seeking bill or report language): N/A Anticipated Appropriations Bill and Account: DOI USDA Forest Service Fire Management Federal Dollars Requested in FY07 from the account listed above: $1.5 Million • Is this a multi-year project? Yes • Will you be requesting funding in future ears? Possibly Are you seeking FY07 funds through other federal accounts? If yes,please specify account(s). No. Previous Federal Appropriations(Please indicate which appropriations bill(s)and year(s)received): No previous federal appropriations for this project. Have you pursued federal grant funding? If yes, which Department and program? National Fire Plan(BLM)and USDA Title III funds are not available for this purpose. City has used these in the past for private lands interface work and education activities. Non-federal Contribution (Please identify funding amount and who is contributing): $40,000/yr=Ashland City Public Works Staff $80,000/yr=Ashland Water Fund to Forest Interface 200 hours local volunteer time/yr Joint Ashland-U.S.Geological Survey stream monitoring project Total local match=$120,000 per year,plus in-kind service Total non-federal contribution: $120,000/yr Total Cost of Project: $1.5 Million Amount for this ro'ect in President's FY07 Budget Request: None. Authorizing Statute(if authorized): Healthy Forests Restoration Act,National Fire Plan Local Contact: • Name: Ann Seltzer,Management Analyst, City of Ashland • Address: 20 East Main Street, City Hall • City, State,Zip: Ashland,OR 97520 • Telephone: 541-552-2106 • Fax: 541-488-5311 • Email: Ann ashland.or.us DC Contact (if applicable):None. • Name: • Address: • City, State,Zip: • Telephone: • Fax: • Email: Other Organizations/Community Leaders who have provided letters in support of this project (please provide letters as PDF attachments or via United States Postal Service): • Organization: Ashland Chamber of Commerce • Contact: Sandra Slattery, Executive Director • Telephone: 541482-3486 • Organization: Ashland Community Hospital o Contact: Mark Marchetti,Director • Telephone: 541-482-2441 • Organization: Southern Oregon University • Contact: Elisabeth Zinser,President • Telephone: 541-552-6111 • Organization: Community Works • Contact: Arnie Green, Director • Telephone: 541-779-2393 x 227 • Organization: City of Ashland • Contact: John W. Morrison,Mayor • Telephone: 541-488-6002 o Organization: Ashland School District • Contact: Juh DiChiro, Superintendent • Telephone: 541-482-2811 * How many jobs will be created by this project? What type of jobs? Forest Service Contractual work, plus volunteer time. Please email the completed form to the appropriate Field Representative FY 2007 - OREGON FEDERAL APPROPRIATIONS REQUEST U.S. Senator Ron Wyden Please fill in ALL applicable fields! Name of Project: Evidenced Based Research for Hi h Risk Youth Location: Count (s : Jackson Coun City. Ashland, Oregon Requesting Organization: Ashland United Front Project Description: This partnership wisely uses community resources, in contexts where the results matter immediately to individual young people. Southern Oregon University will conduct a literature review of evidence-based models and use its analysis as the basis to develop a "wrap-around"system of services with providers.The providers will include the Ashland School District,the Ashland Police Department, the Ashland Chamber of Commerce(providing business community mentors and vocational opportunities), Southern Oregon University(providing a cadre of student mentors), On Track(non- profit provider of alcohol and drug treatment services), and'Community Works (non- - profit social services agency providing project coordination, mental health treatment, and case management). The services will be provided to two cohorts of children and families. One cohort will be an Ashland High School alternative classroom; these students have had significant difficulty making progress in the mainstream classrooms. The second cohort will be students at a residential treatment facility located in Ashland; these students represent some of the more troubled youth in Southern Oregon;they are referred by the Oregon Youth Authority and the Oregon Department of Human Services. Southern Oregon University will perform outcome evaluations for the project. . There is a nation wide effort to improve the efficacy of programs paid for with public funds. These efforts seek to define proven practices and only provide funding for those using these"evidence based"models. Since the cost of providing two independent research studies is high only a few models have been designated as"evidence based". Further,since these are often proprietary the cost of implementing these models is also high. The goal of this project is to demonstrate the efficacy of a model that uses the basic ingredients of a variety of models. This will reduce the costs and develop a base- line of data that can be used by government agencies,non profits, and faith based groups across the country. How will the funds be spent? Please provide a detailed description of how the funds will be used and indicate whether funds will go toward construction,planning, or programming. Funding will be used for research and programming. Salaries and Benefits: $442,056.50 Materials, Services and Administrative Expenses: $157,943.50. This proposal will fund all or part of 16 salaries. A complete budget breakdown is attached. These funds will be paying for staff positions at Community Works,On Track, the City of Ashland, Southern Oregon University, and the Ashland Chamber of Commerce. Bill or Report Language Requested(if applicable,please provide language requested and indicate whether you are seeking bill or report language): N/A Anticipated Appropriations Bill and Account: In 2006 this proposal was put into the Labor and Education Appropriations Bill. After some discussion with Congressional staff it might be better placed in the Justice Appropriations Bill. Federal Dollars Requested in FY07 from the account listed above: $600,000 • Is this a multi-year project? Yes • Will you be requesting funding in future ears? No Are you seeking FY07 funds through other federal accounts? If yes,please specify account(s). No. Previous Federal Appropriations(Please indicate which appropriations bill(s)and year(s)received): None received,but it was requested in the Labor and Education Appropriations Bill. Have you pursued federal grant funding? If.yes, which Department and program? No. Non-federal Contribution(Please identify funding amount and who is contributing): $2,881,962 in matching funds. However, most of these funds are received through state agencies and are commingled with federal funds. It would take some time to break out the state number but it could be done if necessary. Total Cost of Project: $2,881,962 +$600,000=$3,481,962 Amount for this project in President's FY07 Budget Request: None. Authorizing Statute if authorized): N/A Local Contact: • Name: Arnie Green • Address: 900 E.Main • City, State,Zip: Medford,OR 97504 • Telephone: 541-779-2393 x227 • Fax: 541-779-3317 • Email: a reen community-works.or DC Contact(if applicable): None. • Name: • Address: • City, State, Zip: • Telephone: • Fax: • Email: Other Organizations/Community Leaders who have provided letters in support of this project (please provide letters as PDF attachments or via United States Postal Service): . • Organization: Ashland Chamber of Commerce • Contact: Sandra Slattery, Executive'Director • Telephone: 541482-3486 • Organization: Ashland Community Hospital • Contact: Mark Marchetti, Director • Telephone: 541482-2441 • Organization: Southern Oregon University • Contact: Elisabeth Zinser,President • Telephone: 541-552-6111 • Organization: Community Works • Contact: Amie Green, Director • Telephone: 541-779-2393 x 227 • Organization: City of Ashland • Contact: John W. Morrison,Mayor - • Telephone: 541-488-6002 • Organization: Ashland School District • Contact: Juli DiChiro, Superintendent • Telephone: 541482-2811 • Organization: Rogue Valley Transit District • Contact: Peter Jacobsen • Telephone: 541-779-5821 * How many jobs will be created by this project? What type of jobs? 16 staff positions at Community Works, On Track, the City of Ashland, Southern Oregon University, and the Ashland Chamber of Commerce. Please email the completed form to the appropriate Field Representative CITY OF ASHLAND Council Communication Discussion of Annual Budget Process and Calendar Meeting Date: February 6, 2007 Primary Staff Contact: Martha Bennett Department: Administration E-mail: bennettm(aashland.or.us Contributing Departments: j Secondary Staff Contact: Lee Tuneberg Approval: Martha B n E-mail: tunebed(a)ashland Estimated Time: 30 minute Statement: Council has been asked to establish new policies and procedures affecting the annual budget process. Included within the process is the calendar of meetings in that it represents the availability to the public. Some proposed changes fall outside or are an expansion of the Department of Revenue (DOR) nine-step process established by Oregon Budget Law and would significantly impact operations and staffing. This communication is intended to provide Council with information on the City process, how the process fits within State requirements and possible changes to the guidelines for creating the budget. Staff Recommendation: Staff recommends that Council identify the budget calendar that is preferred and what guidelines and assumptions for budget preparation are acceptable to them. Background: PROCESS AND CALENDAR Oregon Budget Law is found in Chapter 294.305-294.565 and it identifies The City of Ashland as a local government that must prepare a budget on an annual or biennial basis. The City of Ashland complies with State of Oregon Budget Law, guidelines and requirements with its annual process. The nine steps to follow in preparing the budget, identified by the State in their circular"Local Budgeting in Oregon, 2001 Edition"are: Preparing the budget 1. Governing body appoints a budget officer 2. Budget officer prepares proposed budget Approving the budget 3. Budget officer publishes public notices 4. Budget committee receives the document and budget message and public input 5. Budget committee approves the budget as modified during deliberations and approves (sets) the property tax rate Advertising and holding hearings 6. Budget officer publishes approved budget summary and notice of hearing 7. Council holds budget hearing to receive public testimony Adopting the budget 1 Imo, 8. Governing body adopts approved budget with or with/out limited changes, makes appropriations and declares/categorizes taxes 9. Budget officer files the budget with the County and the levy is certified. City also does things that go beyond the minimum requirements of the law. Some examples are: A. Preliminary meeting(s) to discuss assumptions for budget creation B. Committee training sessions beyond those provided by DOR C. Projecting budget implications (revenues, expenses and capital) over a six year period D. Utilizing a target fund balance approach E. Incorporating a multiple year capital improvement program F. Presenting the budget in multiple perspectives: fund, department and program G. Participating in a national program that critiques the process, document presentation and information disclosure. H. Televised meetings for citizen viewing Steps 1 through 8 must be completed by June 30, Step nine is done by July 15. Each agency does it a little different within the 1 —9 step frame work. Smaller agencies may only hold one meeting with the budget committee and one meeting with the elected board. DOR suggests that the elected board wait until the last possible moment in June to adopt the budget, setting appropriations, to allow for any last minute changes that must be made. In the recent past Ashland has held between 5 and 10 committee meetings at various times of the week. We have spent approximately 30 hours each year in the budget committee process allowing for presentations, public input and deliberations. The Ashland budget is complex and you should remember that: • The"best" information we have to start the budget process is the 6 month financial report which is not available until late January. • Updates on Council goals and economic issues may not be available until the process has started. • Staff is projecting a year and a half when they begin preparing the budget. • The construction season has not begun at the beginning of the process. The City has tried many different approaches to the budget and budget process in the last 5 or 6 years. ✓ We have held more meetings, less meetings, weekend meetings. ✓ We have used a "base year', a "parking lot"for staff items we weren't sure we could add, additional lists for programs relating to Council Goals and priorities and place holders for items that have been brought forward from the public. ✓ We have raised rates and taxes, lowered property tax rates and other charges, tailored charges to avoid windfalls, agreed to"hold"on increases in rates awaiting more information during the proposed year. ✓ We have tentatively approved expenditures contingent upon something happening during the year and then getting "final" Council approval. The above indicates Ashland's willingness and flexibility to do things different based upon the conditions and perspectives employed annually. Ashland has not tried a two year budget. A key element of the public process is availability through public meetings. As mentioned above, the city has tried many approaches. Difficulty remains with the number of meetings needed for adequate presentation, public input and deliberation. Attached is a schedule that is all night meetings and one that incorporates two Saturdays. 2 'Either can be made to work. Your preference can also be shared and amended if necessary at the initial meeting of the Budget Committee, tentatively scheduled for February 21, 2007. ASSUMPTIONS AND GUIDELINES Council has been asked to consider new guidelines, assumptions and methods to steer the coming budget(s) and related processes and staff will attempt to provide you with meaningful input on suggested improvements. Simple instructions for preparing the budget are best and could range from a "same services with a zero growth budget' to a traditional approach where increased services and costs not covered by new revenues streams are passed on to the community through rates and fees. Recent proposals fall somewhere in between but the stipulations get lost in translation and application. For comparative purposes, we have attached the Short and Long term assumptions that were used to build the FY 2006-07 budget. Staff has experience with submitting to the Budget Committee a balanced budget created using a base budget from the prior year, adjusted by guidelines and assumptions that were provided. It appears that Council has been asked to direct staff to prepare a budget that provides the same level of service without adding or deleting staff nor raising rates or fees. Potentially, anything beyond that would be an "add or subtract" package similar to the "parking lot" and related justification reports used in prior years. Staff envisions the following categories and points appropriate for the coming process: Generally: • Notion of a base budget is workable. Assumptions about expenditures and revenues should be as realistic as possible so that impacts of budget decisions are clear. • Departments need to describe impacts of service changes in terms of levels of service experienced by citizens • Departments need to analyze effects of proposed changes in revenue based on the effect on citizens as well. • Departments currently prioritize health and safety expenditures (one of the directives of Ballot Measure 47/50), and that direction can be reinforced in the 2007-2008 budget process. In the long term, it will be more straightforward to implement such instructions if we had outcome-based performance measures. Revenue Assumptions for 2007-2008 • No increase in tax rates, fees, rates, or charges in "base." Departments CAN include rate increases that were approved in 2006-2007 budgets, even if they have not been implemented yet. • Revenue forecast can include any natural growth or decline that we can reasonably expect. For example, we can assume the 3%growth in assessed value. We can also assume any increase in collections of transient occupancy tax or food and beverage tax that occurred because sales are up. We can also assume any increased revenue that came from increased consumption of a utility service. Likewise, we should also assume any decrease in revenue that we expect. For example, fees paid to community development are generally down because construction activity is down. • We can assume for the purpose of the base budget that we will continue to collect the 17.5 cents per thousand in property tax that is dedicated to the AFN debt, and that amount will continue to be dedicated to AFN debt repayment. The Budget Committee set this as a one year levy but the amount generated could be renewed and become a portion of the General Fund's payment as part of the distribution assumed by Council. 3 �r, Base Expenditure Assumptions for 2007-2008 • No new positions in base budget. Base may include elimination of positions if needed to balance each fund. • Departments should use the actual percentage salary increases in the union contracts that affect their department for salary estimates. Non bargaining salary increases should be budgeted at 4%. • Departments should use the actual percentages produced by Finance and Human Resources for increases in benefit costs. • Professional service line item assumptions need to include detailed descriptions of the number and estimated amount of each contract and the expected work product from each contract. • The BASE for capital expenditures needs to be the same or less than included in the CIP (which should be adopted by the Council on February 20?) Miscellaneous directions • Each fund must be balanced including its share of the AFN debt. Therefore, if estimated expenditures in any fund exceed resources, the department needs to include a list of reductions that were made (to the general categories) to reach the balanced budget and any potential service implication. An exception could be capital expenditures financed through approved borrowing where proceeds cannot be 100% expended by the end of the fiscal year, resulting in added carry over in fund balance that will be expended the following year(s). • Established target fund balances will be adhered to where possible and variations from them will be addressed in the budget message. • To balance the general fund, general fund and central service fund departments should submit potential cut packages in the amount of 5%, 10%, 15%, and 20%. • Enterprise funds do not need to submit cut packages, but must balance budgets without rate or fee increases. • Staff will propose other relevant assumptions such as population growth, inflation, industry specific trends each year as they are developed. • Long-term budget presentations will be based upon approved assumptions and include estimates of expenditure levels for ongoing services and capital, contingency use and comparisons of calculated fund balances to target fund balances. Requests for Increase Departments may submit"add packages" as part of the budget process. • The add package must not only describe the service increase that would be realized but the proposed funding source. If the add package would require a rate or fee increase, the department will describe the cost to the "average"citizen in Ashland from the increase • Department Directors must prioritize their own add packages, and the City Administrator will work with the Department Head group to prioritize all add packages citywide to ensure the budget committee considers the highest priority add packages first. Add packages that affect multiple departments will be consolidated. Additionally, the budget message and department presentations will address proposed changes in services to be provided, problems encountered or expected in providing same level of services and balancing revenues and 4 MAN expenses into the future. The budget process will begin as soon after the mid year financial information can be presented and sufficient meetings will be scheduled to provide adequate input from the public, presentations by staff and deliberation by the Budget Committee. The Budget Committee will publicly receive and discuss the proposed budget including revenues, expenses, fund balances, service levels, funding requirements and financial impacts of the operating and capital budget as delineated in the Oregon Budget Law found in ORS Chapter 294. Altogether, the above general and specific guidelines and assumptions provide sufficient direction to staff to prepare the annual budget in an effective manner. Related City Policies: City of Ashland Financial Management Policies Council Options: Council needs to do two things: • Identify the budget calendar preferred. • Accept the assumptions presented, amend them as discussed or request additional information. Attachments: FY 2006-2007 Short-term and Long-term assumptions.(for comparative purposes) Budget Calendars 5 �r, FY 2006-07 Budget Assumptions — FY 2006-07 only 1. Inflation for Materials& Services will be 3.0%for FY 2006-2007, with the exception of Fuel at 50%. 2. Population growth will be 1.0%. 3. Property tax: The rate will be held to$1.72 City, $2.09 Parks, approximately $3.81 combined. 4. Staff will ensure efficient and effective operations prior to recommending tax level increases. 5. Property assessed valuation growth will be 3% plus new construction of 2%. 6. Union contract provisions will be met and agreements reached for Police and Fire contracts. 7. The budget will address the City Council's strategic plan goals and objectives. 8. The City will pay its contribution rate set by PERS. Additional amounts will be set aside when possible to offset future increases (Anticipated 40% increase for employer share on July 1, 2007) due to the unfunded liability. 9. Health care premiums will increase 7-9%. New labor contracts will include employee sharing the cost. 10. User fees will continue to support enterprise operations. 11. System development charges (SDCs) will be updated where applicable. 12. Existing physical assets of the City will be maintained at current levels. 13. The City will comply with Federal and State requirements. 14. Planning fees will fund approximately 75% of division activities. 15. Building permits will fund division activities at 100%. 2007 Budget Assumptions FY 2006-07 Budget Assumptions — Long-Term (2007 — 2012) 1. Inflation will be 3% starting in 2007. 2. Population growth will be 1.2%. 3. Property tax rate will not exceed $1.70690 City, $2.09 Parks, $3.9747 combined (Total authorized is $4.29) 4. Property assessed valuation growth will be 3% plus new construction of 2%. 5. Electric Utility Users Tax revenue will increase an average of 2% in addition to applicable rate increases. 6. Franchise revenues will increase consistent with rates. a. Natural Gas 2% b. Telephone 5% c. Water 2% d. Wastewater 2% 7. Transient occupancy tax revenue will increase at 5% on average. 8. Food & Beverage Tax revenue will increase at 5% on average. 9. User fees will be adjusted as necessary to support enterprise operations. 10. Planning fees will fund approximately 75% of division activities. 11. Building permits will fund division activities at 100%. 12. Intergovernmental revenues will grow at 5%. 13. Court fees will grow at 2% on average. 14. Ambulance revenues will grow each year per transports but may be limited by federal restrictions. 15. Fund balance targets will be adhered to over the long-term. 16. The city will comply with Federal and State requirements. Accepted 2007-2012 Budget Assumptions-LongTerm.doc Budget Calendar FY 2007-08 Saturdays -Draft 2/21/07 BUDGET COMMITTEE -Introduction Council Chambers 7:OOpm 3/1,3/5/07 BUDGET SUBCOMMITTEE Social Service Grant Presentations Council Chambers 7:OOpm 4/5416/07 BUDGET SUBCOMMITTEE Economic& Cultural Grant Presentations Council Chambers 7:OOpm 4/19/07 FULL BUDGET COMMITTEE MEETING -Budget Message Capital Improvement Plan Council Chambers 7:OOpm 4/21/07 DEPARTMENTAL BUDGET PRESENTATIONS Administration, Human Resources, Legal, City Recorder Administrative Services, (Accounting, Customer Service, Purchasing, and Non Operating), Library Electric and Conservation,and Information Technology Presentations Council Chambers B:OOam-S:OOpm 4/28/07 DEPARTMENTAL BUDGET PRESENTATIONS Community Development and CDBG Parks, Police and Fire Presentations Public Works Airport, Street, Water, Wastewater,Administration, Engineering, Cemetery and Equipment. Council Chambers B:OOam-S:OOpm 5/9107 FULL BUDGET COMMITTEE MEETING/WRAP-UP/APPROVAL Public Works Continued if needed, Set Tax Rate, WRAP-UP APPROVAL Council Chambers 7:OOpm 5/17/07 FULL BUDGET COMMITTEE MEETINGIWRAP-UP/APPROVAL Ifneeded Council Chambers 7:OOpm 6/5/07 PUBLIC HEARING First Reading of Ordinance Resolution on appropriations Resolution to qualify for state subventions Resolution to receive state revenues Resolution declaring to receive state revenues 6/19/07 SECOND READING OF ORDINANCE G:\finanoe\Administration\Budget\Calendar&Handouts\2007-08\Budget Committee Calendar 2007-08.xlsSaturdays option 1 2/1/2007 9 Budget Calendar FY 2007-08 Night Meetings -Draft 2/21/07 BUDGET COMMITTEE -Introduction Council Chambers 7:OOpm 3/1,3/5/07 BUDGET SUBCOMMITTEE Social Service Grant Presentations Council Chambers 7:OOpm 415416107 BUDGET SUBCOMMITTEE Economic& Cultural Grant Presentations Council Chambers 7:OOpm 4/19/07 FULL BUDGET COMMITTEE MEETING -Budget Message Capital Improvement Plan Council Chambers 7:OOpm 4/30107 DEPARTMENTAL BUDGET PRESENTATIONS Police, Fire, Parks, Community Development, CDBG Presentations Council Chambers 7:OOpm 5/2/07 DEPARTMENTAL BUDGET PRESENTATIONS Administration, Human Resources, Legal, City Recorder, Admin Services Council Chambers 7:OOpm 5/3/07 DEPARTMENTAL BUDGET PRESENTATIONS Electric and Conservation Presentations, Information Technology Council Chambers 7:OOpm 5/9107 DEPARTMENTAL BUDGET PRESENTATIONS Library Council Chambers 7:OOpm 5/17/07 DEPARTMENTAL BUDGET PRESENTATIONS Public Works Airport, Street, Water, Wastewater,Administration, Engineering, Cemetery and Equipment. Council Chambers 7:OOpm 5/21/07 FULL BUDGET COMMITTEE MEETINGIWRAP-UP/APPROVAL Public Works Continued if needed, Set Tax Rate, WRAP-UP APPROVAL Council Chambers 7:OOpm 5/21/07 FULL BUDGET COMMITTEE MEETING/WRAP-UP/APPROVAL If needed Council Chambers 7:OOpm 615/07 PUBLIC HEARING First Reading of Ordinance Resolution on appropriations Resolution to qualify for state subventions Resolution to receive state revenues Resolution declaring to receive state revenues 6/19/07 SECOND READING OF ORDINANCE G:\finance\Administration\Budget\Calendar&Handouts\2007-08\Budget Committee Calendar 2007-08.xlsBudget Calendar nights 2/1/2007 CITY OF -ASHLAND Council Communication Ashland Fiber Network Five Year Business Plan Meeting Date: February 6,2007 Primary Staff Contact: Joseph Franell Department: Information Technology E-mail:franellj @ashland.or.us Contributing Departments: Finance Secondary Staff Contact: N/A Approval: Martha Bennett,City Administrator Estimated Time: 30 Minutes Statement: Attached is a five year business plan for the Ashland Fiber Network (AFN). Background: When the City Council voted in May of 2006 to set the direction for AFN, staff agreed to provide a business plan prior to the beginning of the next year's budget cycle. This timing allowed for the completion of the restructure of AFN and a month or two of financial reports to be available as a starting place for projections while building the business plan. This business plan includes historical views of revenue and expense lines to provide perspective on financial projections through fiscal year 2012. Also included are; a current financial summary, a revenue summary by category, revenue summaries for each product line, an expense detail, capital projections, and a discussion about network refresh and the need for a new Cable Modem Termination System (CMTS). It is important to note that financial projections are largely based on the projected growth of AFN's retail partners. Since AFN generally wholesales its products, the City has limited control over customer growth. Also, since technology changes at a rapid pace, staff will need to revisit this plan annually to adjust for market changes and the availability of new products and opportunities. Related City Policies: N/A Council Options: 1. Adopt the Business Plan as presented with the expectation that staff will update and present it to Council for review and adoption on an annual basis. Or 2. Have staff bring business plan back for adoption at a later date. Potential Motions: I move that Council adopt the Business Plan as presented with the expectation that staff will update and present it to Council for review and adoption on an annual basis. Attachments: AFN Business Plan �r, The Ashland Fiber Network Five Year Business Plan Presented : February 2007 COMMUNITY BROADBAND ASkLRng RbV Me .'ov2 _90 W Mc� v. ¢Lw, ve.,. sraw., OYIeon 7520 Contents PAGE 1 COVER LETTER PAGE 2 TABLE OF CONTENTS PAGE 3 A MESSAGE FROM THE DIRECTOR PAGE 4 BOTTOM LINE UP FRONT PAGE 5 WHERE WE CAME FROM PAGE 6 WHERE WE CAME FROM (CONTINUED) PAGE 7 CURRENT FINANCIAL SUMMARY PAGE 8 FIVE YEAR FORECAST PAGE 9 REVENUE SUMMARY BY CATEGORY PAGE 10 REVENUE SUMMARY FOR VOIP (TELEPHONE) &AFN INTERNET PAGE 11 REVENUE SUMMARY FOR WIRELESS INTERNET& HIGH SPEED DATA PAGE 12 REVENUE SUMMARY FOR WHOLESALE INTERNET& CABLE TELEVISION PAGE 13 EXPENSE DETAIL PAGE 14 CAPITAL PAGE 15 NETWORK REFRESH AND A NEW CMTS PAGE 16 THE FUTURE 2 sn avL c er Ner..ror2 o No MGU e�w. ve.,Asn aw ., oveaev. gs2o A Message From The Director The past ten months have been an exciting time for the Ashland Fiber Network (AFN). In May, 2006, the City Council voted unanimously to move forward with a plan to remake AFN. Since that decision was made, the City has begun the construction of a wireless internet network; leased the CAN video facilities to Ashland Home Net; and has launched a Voice Over Internet Protocol (VOIP) telephone product in partnership with Rio Communications. When I presented to the budget committee in 2006, 1 provided an outline of what the next few years would look like. FY 2006/2007 Restructure AFN According to May 1 Council Decision FY 2007/2008 Regain Network Health FY 2008/2009 Generate Positive Operational Cash Flow With the restructuring of AFN well underway, it is time to better quantify the next few years. AFN Staff, with the assistance of the finance department, have put together a plan that details revenue, expense, and capital by product line. Since we wholesale most product lines, the City has limited control of customer growth and the associated revenue. As such, staff has projected conservative growth based on current run rates; however, these projections are dependent upon the success of private enterprise. With only a month or two behind us since the spin off of the cable television product and the launch of telephone, both expense and revenue projections are somewhat soft. As each month's financials are released, we will receive more accurate information and as such, a more accurate forecast. This business plan also includes AFN becoming a retail ISP with the expressed purpose of gaining additional collective market share. We are not interested in taking customers from our current ISPs but instead hope to convert current Charter broadband customers, Qwest DSL customers, miscellaneous dial-up customers, and households that do not yet have a connection. I am excited with the level of support experienced by the City Council, my fellow City employees, and the community. I am convinced that support will continue to enable AFN to grow in financial health and to provide excellence in service to Ashland. Joseph Franell Director of Information Technology 3 AsviWvO FLUr Ne ,,orR _ o Nnrto Moues O�wAVe..Asn aw ., oreaov,y�-520 Operational Net It is important to begin with the "bottom line". Seeing the bottom line up front allows everyone to have a clear picture of where we project AFN's financials will go over the next five years and helps prevent getting lost in the numbers before even getting to the "net". As you can see below, the picture is a good one. The projections represented in this document reflect an $800,000 positive swing over the nine years covered. FY2008 is an exception in the positive trend of the enterprise due to the amount of capital needed that year to restore network health. Operational NET(Including Capital) $500,000 $400,000 $300,000 $200,000 $100,000- v $0 -$100.000- 8 -$200,000 -$300,000 -$400,000 -$500,000 4 ' > aw we) Ne :o.rz _ o or 0uv. ¢tw, ve.,.4sN awn, oreUOw �s2o The Past Three Years Below is a view of the past three years' financials. While FY 2005/06 was a much better year financially, the cable television,product line still lost $341,442. Spinning off cable N was the right decision. Revenue growth slowed down from 2005 to 2006 and cable television programming costs continued to rise. FY 2004 FY 2005 FY 2006 Total Personal Services $666,196 $674,108 $787,332 Total Materials and Svcs $1,730,686 $2,034,368 $1,829,570 Total Capital $154,146 $64,311 $160,000 TOTAL EXPENSE $2,551,028 $2,772,787 $2,776,902 Total Internet Revenue $950,645 $1,113,216 $1,248,262 Total Cable Revenue $931,761 $1,140,097 $1,225,884 Total Advertising Revenue $2,906 $7,347 $1,198 Total High Speed Data Revenue $268,688 $217,417 $220,034 TOTAL REVENUE $2,154,000 $2,478,077 $2,695,378 Historical Summary $3,000,000 $2,500,000 $2,000,000 ® - $1,500,000 n TOTAL EXPENSE $1,000,000 ® ■TOTAL REVENUE $500,000 $0 FY 2004 FY 2005 FY 2006 Note: "Cost of Service" includes Operational and Capital expenses but not Debt Service 5 sn aAa er'n:e worm 90 No MouA clw.Ave.,, srn aA ., oregoA 520 Current Financial Summary The year to date, July through December, 2006, financial statement for the Telecommunications Fund showed that AFN was on track for budgetary expenses and was ahead on revenue. This is in large part due to fewer losses in CAN subscriber counts and net gains in billable internet accounts. Additionally, we are under-spending our marketing budget. In summary, AFN's financial outlook is favorable. Operational losses have been stopped and customer counts are higher than anticipated immediately following the transition of the CAN product line. As a result, revenues are higher than were initially projected. 2007 YTD as of 12/31/06 2007 Adopted $1,774,000 $1,879,843 YTD Actual $1,196,098 $1,001,390 ec e 67.42% 53.27% Year to Date Financial Summary am iz,000,000 fLaoo,000 — t+.coo,000 fUOO,000 !1.200,000 G200i AJs>bd n.000,000 ■rroaa..e aaoo,000 — {too,000 — a000,000 _ tzoo,000 ® _ So Revenue Expense 6 As ,2 F LOer rte .Vorrt _.o ti-o n Moue^. ci�w. ve.,.4sn Ctw , oreUon 9}s2o ® I Five Year Forecast The following table is a summary of revenues, expenditures, and the associated "net"for the next five fiscal years. This includes all capital expenses for each year. Since the capital outlay for FY 2007/08 is larger than the following years due to the need to regain network health, the 2007/08 "net' operational cash flow is lower. For subsequent years, we project annual revenue growth of approximately 5%. Total Annual Total Annual Total Gross Gross Annualized Revenue Expense Net FY 07/08 $1,680,874 $1,640,108 $40,767 FY 08/09 $1,767,553 $1,558,036 $209,516 FY 09/10 $1,856,951 $1,613,540 $243,410 FY 10/11 $1,956,078 $1,597,767 $358,311 FY 11/12 $2,060,917 $1,659,369 $401,548 Revenue/Expense Summary $2,500,000 $2,000,000 $1,500,000 I ; ; e Total Annual Gross Revenue $1,000,000 I ' ' ' ' ■Total Annual Gross Expense $500,0$00 � , ' FY FY FY FY FY 07108 08109 09/10 10/11 11/12 7 571 c w ( Fwcr Ne worrz qO Ntrth Moue ,2,M Ve..Asn CIw ., OrePOv._ }520 Revenue Summary by Category The assumptions made in projecting revenue are as follows: 1. Voice Over Internet Protocol (VOIP) and AFN Internet Service Provider (ISP) revenues will increase quarter-to-quarter by 5%. 2. Wireless Internet revenue will increase 3% quarter-to-quarter. 3. High Speed Data revenue will increase 2% quarter-to-quarter. 4. Wholesale Internet revenue (revenue from other ISP's) will increase 1% quarter-to- quarter. 5. Ashland Home Net will start 1s' Quarter FY 2007/08 with 2400 customers averaging $17.00 per customer per billing month. Cable Television (CAN) revenue will increase 1% quarter-to-quarter for FY 2007/08 and 3% quarter-to-quarter for each year following. Mo hly Revenue by Product Line TOTAL TOTAL Fiscal AFN High Wholesale Monthly Annualized Year VOIP ISP Wireless Seed Internet CATV Gross Gross 2007/08 $732 $2,586 $1,098 $18,239 $109,601 $7,816 $140,073 $1,680,874 2008/09 $824 $3,143 $1,236 $19,495 $114,051 $8,546 $147,296 $1,767,553 2009/10 $927 $3,821 $1,391 $20,305 $118,682 $9,619 $154,746 $1,856,951 2010111 $1,044 $4,644 $1,566 $21,425 $123,501 $10,826 $163,006 $1,956,078 2011/12 $1,175 $5,645 $1,762 $22,460 $128,516 1 $12,185 $171,743 $2,060,917 8 s LGiwa � er Ne :.porn,. ,o Mere Plow^. P,�w, •✓e:,.qsn aw ., oregev. �s2o Revenue Summary for Voice over Internet Protocol Tele hone Low Target High Target Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $366 $732 $1,464 $8,786 FY 2008/09 $412 $824 $1,648 $9,888 FY 2009/10 $464 $927 $1,855 $11,129 FY 2010/11 $522 $1,044 $2,088 $12,526 FY 2011/12 $587 $1,175 $2,350 $14,098 VOIP (Telephone) Revenue $2,500 $2,000 lew Groan Montl.ly Rwenm $1.500 -��-Tager Groan MenrMy Rewne $1,000 Hilh Groan MontM1ly Rer $500 $0 _ Revenue Sum ary for AFN Internet Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $2,510 $2,586 $2,664 $31,033 FY 2008/09 $2,825 $3,143 $3,492 $37,721 FY 2009/10 $3,180 $3,821 $4,577 $45,850 FY 2010/11 $3,579 $4,644 $6,000 $55,731 FY 2011/12 $4,028 $5,645 $7,864 $67,741 AFN Internet Revenue $7,000 $6,000 $5,000 -Low Gro.. MemM1ly Revewe $4000 -Targtt M..,h Gros: $$,000 - MeneM1ly Reycn« $2,000 -+-High G.00s Monthly R<v<ny< $1,000 $0 o R 9 771777F 767 Ne7v972 90 N tiou aw , ve.,Asn a v., oreoov. }52o Revenue Summa for Wireless Internet Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $822 $1,098 $1,478 $13,178 FY 2008/09 $856 $1,236 $1,869 $14,832 FY 2009/10 $890 $1391 $2,364 $16,694 FY 2010/11 $927 $1,,566 $2,990 $18,789 FY 2011/12 $964 $1,762 $3,782 $21,148 AFN Wireless Revenue $9,000 $6,000 $7,000 $6,000 $5,000 Monehly R<v<no< - Tary<t Grocc $4,000 Monthly Rev<nec $3,000 -,�High crop. $2,000 Monthly R<venc< $1,000 $0 Revenue Summa for High Speed Data Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $17,358 $18,239 $18,693 $218,870 FY 2008/09 $17,751 $19,495 $20,420 $233,939 FY 2009/10 $17,996 $20,305 $21,781 $243,662 FY 2010/11 $18,324 $21,425 $23,622 $257,101 FY 2011/12 $18,617 $22,460 $25,024 $269,518 AFN High Speed Data Revenue $9,000 $6,000 $7,000 $6,000 Monehly Revenre $5,000 $4,000 +-Tmg<!Greve - Monehly Rev<nc< $3.000 $2,000 Monthly R<v<nue $1.000 $O N � 10 5 Lana �Oer' Ne :'orK O N� _ ,'�t0u✓. P,Ln AvC.,. Sn Ctn ., OreUOV._ �-s20 Revenue Summa for Wholesale Internet Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $108,249 $109,601 $109,882 $1,315,213 FY 2008/09 $110,431 $114,051 $116,625 $1,368,616 FY 2009/10 $112,656 $118,682 $123,782 $1,424,187 FY 2010/11 $114,926 $123,501 $131,377 $1,482,014 FY 2011/12 $117,242 1 $128,516 1 $139,439 $1,542,190 Wholesale Internet Revenue 'assn assn 9ns,m Low Gros assn' Monthly Revcnac Target Gros: a1s•as Mont Aly Revenue - 9„r,rrr Monthly Revenue aa,nr Nu,m FY FY rY2009I10 FY2010011 FY20HH2 2007108 2008109 Revenue Summary for Cable Television Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $7,758 $7,816 $7,934 $93,795 FY 2008/09 $8,013 $8,546 $9,245 $102,557 FY 2009/10 $8,339 $9,619 $11,237 $115,429 FY 2010/11 $8,895 $10,826 $13,659 $129,916 FY 2011/12 $9,629 $12,185 1 $16,603 $146,222 Cable Television Revenue tls,000 itt,000 -- $15.000 $13.000 Monthly Rw na< �Target Gros: $11,000 Monthly Revenue !9,000 ->•'-High Gross Monthly Ravenae $7.000 $5,000 11 >N GN, s CY Ng tv0Y2 DNS _N MOU4^.. P,bw.,qVE.,ASn Rw„ OYCGON. X520 /1 Expense Detail The below spreadsheet provides more detail of expense history and projections. Following City practice, we applied an annual 7% increase to Personal Services to make sure that increases in health insurance and other benefits were covered. We applied an annual 3% increase to Materials and Services to account for inflation in these areas as well. Capital expenses are based on actual projections for Capital purchases and planned replacement. More specifics for Capital follow on the next page. FY 2004 FY 2005 FY 2006 FY 2007 Historical Historical Historical Pro'ected FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Personal Services Salaries 8 Wages $457,270 $476,739 $537,930 $399,245 $355,479 $354,766 $384,828 $417,224 $439,806 Fringe Benefits $208,926 $197,369 $249,402 $237,719 $177,072 $198,499 $215,209 $207,092 $236,819 Total Personal Services $666,196 $674,108 $787,332 $636,964 $532,551 $553,265 $600,038 $624,316 $676,625 Materials Services Supplies $253,533 $263,998 $133,659 $307,696 $321,252 $327,735 $329,718 $339,610 $341,714 Rental, Repair, Maintnce $128,887 $95,372 $109,896 $116,974 $71,023 $73,202 $73,543 $75,802 $76,168 Commo $31,478 $15,017 $6,252 $12,009 $5,126 $5,280 $5,280 $5,438 $5,438 Contract Services $196,033 $410,368 $126,302 $44,663 $52,991 $62,009 $63,366 $65,267 $66,707 Misc. Charges 8 Fees $379,833 $417,571 $539.687 $380,138 $277,462 $272,617 $275,506 $283,907 $286,983 Other Purchase d Services $740,922 $832,042 $913,774 $216,032 $58,703 $69,653 $71,814 $74,151 $76,459 Total Materials and Svcs $1,730,686 $2,034,368 $1,829,570 $1,077,511 $786,556 $810,497 $819,228 $844,176 $853,469 Capital E ui mnt $0 $0 $120,000 $70,000 $201,000 $134,275 $134,275 $44,275 $44,275 Imprvmnts OITBltl s $154,146 $64,311 $40,000 $0 $120,000 $60,000 $60,000 $85,000 $85,000 Total Capital $154146 $64,311 $160,000 $70,000 $321,000 $194 75 $194 75 $129,275 $129275 TOTAL $2,551,028 $2,772,787 $2,776,902 $1,784,475 $1,640,108 $1,558,036 $1,613,540 $1,597,767 $1,659,369 12 Aso LOA er NEttvOr2 _,O Ncrt Ave..ASVI Cin ., Or_om 7520 Capital The Capital projections listed in the table below are the same as included in the City's Capital Improvement Plan. Unlike in years past, we are accounting for depreciation and planned replacement of equipment and network components by setting aside a percentage of the value of an item each year in advance. For example, next year, we will replace the Cable Modem Termination System (CMTS). Each year following, we set aside 20% of the value of a new CMTS based on a projected five year life span. This results in the City not having to have spikes in the Capital expense projections for AFN after next year. Put Reroute Fiber Wireless Fields Maps in Network Buildout CMTS Routers Project GIS Refresh 2007/08 $15,000 $125,000 $20,000 $40,000 $20,000 $10,000 2008/09 $0 $25,000 $4,000 $0 $0 $10,000 2009/10 $0 $25,000 $4,000 $0 $0 $10,000 2010/11 $0 $25,000 $4,000 $o $0 $10,000 2011/12 $0 $25,000 $4,000 $0 $0 $10,000 2012113 $0 $25,000 $4,000 $0 $0 $10,000 2013/14 $0 $25,000 $4,000 $0 $0 $10,000 Under ground WiMax FTTP Machine TDR OTDR Locator TOTAL 2007/08 $0 $50,000 $23,000 $2,000 $11,000 $5,000 $230,000 2008109 $100,000 $50,000 $2,300 $400 $1,575 $1,000 $39,000 2009/10 $100,000 $50,000 $2,300 $400 $1,575 $1,000 $39,000 2010/11 $10,000 $75,000 $2,300 $400 $1,575 $1,000 $39,000 2011112 1 $10,000 $75,000 $2,300 $400 $1,575 $1,000 $39,000 2012113 $10,000 $75,000 $2,300 $400 $1,575 $1,000 $39,000 2013/14 $10,000 $75,000 $2,300 $400 $1,575 $1,000 1 $39,000 13 sr�awa � er Ner.vevrz o �:o r^ou�^. a��, ve.,. sn an.., oregow �s2o Network Refresh and a New CMTS As stated during the May 1, 2006 City Council meeting and during the IT Departmental budget briefing, there has been no planned replacement of key network components to date. As a result, some of those components are past"end-of-life" and must be replaced immediately. The most pressing need is the replacement of the Cable Modem Termination System (CMTS). It is a system of devices located in the cable head-end that allows AFN to offer high-speed Internet access to home computers. The CMTS sends and receives digital cable modem signals on our cable network, receiving signals sent upstream from a user's cable modem, converting the signals into IP packets and routing the signals to one of our Internet Service Providers for connection to the Internet. The CMTS also can send signals downstream to the user's cable modem:Cable modems cannot communicate directly with each other; they must communicate by channeling their signals through the CMTS. Current CMTS. New CMTS Processor Utilization @ 100% Scaleable DOCSIS 1.1 Compliant 2.0 & Upgradeable Quality of Service Functionality Minimally Supported Fully Supported Download Speed 3-5 Mb s Maximum Greater than 10 Mb s Upload Speed 1 Mb s Maximum Greater than 10 Mb s Vendor Support Features, Fixes No Longer Supported Fully Supported The new CMTS will allow AFN to provide the next level of internet service with significantly faster speeds and better quality of service. In addition to the replacement of the CMTS, the AFN staff will do planned maintenance on and replacement of other key network components to include; optical nodes, power supplies and batteries, and other active devices in the outside plant. 14 AShO. a FLOer Ne :wp IF 777 777777 Ave.,ASn G7w., Freeov, 7520 The Future With our recent restructuring of AFN so fresh in our minds, talking about the future is critical. Since AFN has technology centric services and the one constant in technology is that it keeps changing, the AFN team must constantly look to and plan for the future in order to ensure the community continues to enjoy the benefits of state of the art telecommunications products and services. While the future of technology is rarely crystal clear, we can make educated projections of future needs and what products will best fill those needs. This business plan allows for the continued build-out of the wireless internet product we currently have deployed in parts of the city. It also includes a planned migration to a WiMax solution that is the next generation of wireless internet. We've included continued fiber to the premise installations for those with high-bandwidth application requirements and the plan includes the purchase and installation of a new CMTS. There are other, new technologies that are just now beginning to be seen in the market that we will watch to see if they provide warranted benefit to Ashland. We will update the capital plan as appropriate to make sure that the investment in the Ashland Fiber Network stays meaningful well into the future. Finally, we will continue to fine tune this plan as we get better run rates and are able to more accurately trend both expenses and revenues. 15 s aw � er Ner.•:ov� �o �,� _ r�ou�^. a�w, ve.,. sn aw ., oveooV.9�s2o �evtsc� z/&/o7 The Ashland Fiber Network Five Year Business Plan Presented: February 2007 m ., . 7 xe COMMUNITY BROADBAND ' I AS nvt Ft EY NebNOY 90 NOYt Mov"tctm Ave.,As Al U., OYCPO�9 7520 Contents PAGE 1 COVER LETTER PAGE 2 TABLE OF CONTENTS PAGE 3 A MESSAGE FROM THE DIRECTOR PAGE 4 OPERATIONAL NET PAGE 5 THE PAST THREE YEARS PAGE 6 CURRENT FINANCIAL SUMMARY PAGE 7 FIVE YEAR FORECAST PAGE 8 REVENUE SUMMARY BY CATEGORY PAGE 9 REVENUE SUMMARY FOR VOIP (TELEPHONE) &AFN INTERNET PAGE 10 REVENUE SUMMARY FOR WIRELESS INTERNET& HIGH SPEED DATA PAGE 11 REVENUE SUMMARY FOR WHOLESALE INTERNET &CABLE TELEVISION PAGE 12 EXPENSE DETAIL PAGE 13 CAPITAL PAGE 14 NETWORK REFRESH AND A NEW CMTS PAGE 15 THE FUTURE 2 As aw 0 R er N&NDKq 90 North Mou Pin Ave.,AL110w 0, oregow_931520 !II �II� A Message From . The Director The past ten months have been an exciting time for the Ashland Fiber Network (AFN). In May, 2006, the City Council voted unanimously to move forward with a plan to remake AFN. Since that decision was made, the City has begun the construction of a wireless internet network; leased the CAN video facilities to Ashland Home Net; and has launched a Voice Over Internet Protocol (VOIP) telephone product in partnership with Rio Communications. When I presented to the budget committee in 2006, 1 provided an outline of what the next few years would look like. FY 2006/2007 Restructure AFN According to May 1 Council Decision FY 2007/2008 Regain Network Health FY 2008/2009 Generate Positive Operational Cash Flow With the restructuring of AFN well underway, it is time to better quantify the next few years. AFN Staff, with the assistance of the finance department, have put together a plan that details revenue, expense, and capital by product line. Since we wholesale most product lines, the City has limited control of customer growth and the associated revenue. As such, staff has projected conservative growth based on current run rates; however, these projections are dependent upon the success of private enterprise. With only a month or two behind us since the spin off of the cable television product and the launch of telephone, both expense and revenue projections are somewhat soft. As each month's financials are released, we will receive more accurate information and as such, a more accurate forecast. This business plan also includes AFN becoming a retail ISP with the expressed purpose of gaining additional collective market share. We are not interested in taking customers from our current ISPs but instead hope to convert current Charter broadband customers, Qwest DSL customers, miscellaneous dial-up customers, and households that do not yet have a connection. I am excited with the level of support experienced by the City Council, my fellow City employees, and the community. I am convinced that support will continue to enable AFN to grow in financial health and to provide excellence in service to Ashland. Joseph Franell Director of Information Technology 3 .7s 7.7sw7d 7 er Nervov 90 Nort Mo"wtamAve.,As .aw , oregow 97525 Operational Net It is important to begin with the"bottom line". Seeing the bottom line up front allows everyone to have a clear picture of where we project AFN's financials will go over the next five years and helps prevent getting lost in the numbers before even getting to the "net". As you can see below, the picture is a good one. The projections represented in this document reflect an $800,000 positive swing over the nine years covered. FY2008 is an exception in the positive trend of the enterprise due to the amount of capital needed that year to restore network health. Operational NET(including Capital) $500,000 $400,000 $300,000 $200,000 $100,000 $0 N N N N 31UU,000- x a S 3200,00 LL LL LL LL -$300,000 -$400,000 3500,000 4 A5 htPin.d Fl. er NetNDY 90 Nortk M7777 Ave.,AM MT 9;52o The Past Three Years Below is a view of the past three years' financials. While FY 2005/06 was a much better year financially, the cable television product line still lost$261,201. Spinning off cable TV was the right decision. Revenue growth slowed down from 2005 to 2006 and cable television programming costs continued to rise. Expense by Category FY 2004 FY 2005 FY 2006 Total Personal Services $666,196 $674,108 $653,753 Total Materials and Svcs $1,730,686 $2,034,368 $1,792,268 Total Capital $154,146 $64,311 $79,132 TOTAL EXPENSE $2,551,028 $2,772,787 $2,525,153 Expense by Product Line Total Internet Expense $735,991 $659,891 $612,122 Total Cable Expense $1,480,928 $1,820,145 $1,487,085 Total Advertising Expense $143,195 $83,617 $92,650 Total High Speed Data Expense $190,914 $209,134 $202,332 TOTAL EXPENSE $2,551,028 $2,7 2,787 $2,394,189 Revenue Total Internet Revenue $950,645 $1,113,216 $1,248,262 Total Cable Revenue $931,761 $1,140,097 $1225884 Total Advertising Revenue $2,906 $7,347 $1,198 Total High Speed Data Revenue $268 688 $217,417 $220 034 TOTAL REVENUE $2,154,000 $2,478,077 $2,695,378 FY 2004 FY 2005 FY 2006 TOTAL EXPENSE $2,551,028 $2,772,787 $2,525,153 TOTAL REVENUE $2,154,000 $2,478,077 $2,695,378 Historical Summary $3,000,000 $2,500,000 .$2,000,000 L $1,500,000 O TOTA EXPENSE $1,000,000 ■TOTAL $500,000 REVENUE $0 FY 2004 FY 2005 FY 2006 Note: "Cost of Service" includes Operational and Capital expenses but not Debt Service or Franchise Fees/Miscellaneous Taxes. 5 ASKCWt FL er Network yo North rnouwtn�n AVe.,As aw , oreom y752o Current Financial Summary The year to date, July through December, 2006, financial statement for the Telecommunications Fund showed that AFN was on track for budgetary expenses and was ahead on revenue. This is in large part due to fewer losses in CAN subscriber counts and net gains in billable internet accounts. Additionally, we are under-spending our marketing budget. In summary, AFN's financial outlook is favorable. Operational losses have been stopped and customer counts are higher than anticipated immediately following the transition of the CAN product line. As a result, revenues are higher than were initially projected. 2007 YTD as of 12/31106 2007 Adopted $1,774,000 $1,879,843 YTD Actual $1,196,098 $1,001,390 e co 6o Ie Ex en ed 67.42% 53.27% Year to Date Financial summary am sz,000,oao st000,aoo ttso0000 fuoo,000 am 1,200.004 o zoar nz.rt.z st,000,000 am seoo,000 ■V1DAatw4 100,000 {eoo,000 $2 10 am o Revenue Expense 6 s aw Mer 77 777 _90 North rnoun nmAve-As awa, Oregon_9)1520 e Five Year Forecast rpl The following table is a summary of revenues, expenditures, and the associated "net'for the next five fiscal years. This includes all capital expenses for each year. Since the capital outlay for FY 2007/08 is larger than the following years due to the need to regain network health, the 2007/08 "net'operational cash flow is lower. For subsequent years, we project annual revenue growth of approximately 5%. Total Annual Total Annual Total Gross Gross Annualized Revenue Expense Net FY 07/08 $1,680,874 $1,640,108 $40,767 FY 08/09 $1,767,553 $1,558,036 $209,516 FY 09/10 $1,856,951 $1,613,540 $243,410 FY 10/11 $1,956,078 $1,597,767 $358,311 FY 11/12 $2,060,917 $1,659,369 $401,548 Revenue/Expense Summary $2,500,000 $2,000,000 $1,500,000 13 Total Annual Grass Revenue $1,000,000 ■Total Annual Gross Expense $800,000 - - - - $0 FY FY FY FY FY 07108 0809 09/10 10/11 11/12 7 A.SKPw ct TW er Netwov yo North MouwtaLw Ave.,Ashtnw d, Oregon 9}s2o Revenue Summary by Category The assumptions made in projecting revenue are as follows: 1. Voice Over Internet Protocol (VOIP) and AFN Internet Service Provider(ISP) revenues will increase quarter-to-quarter by 5%. 2. Wireless Internet revenue will increase 3% quarter-to-quarter. 3. High Speed Data revenue will increase 2% quarter-to-quarter. 4. Wholesale Internet revenue (revenue from other ISP's)will increase 1% quarter-to- quarter. 5. Ashland Home Net will start 1"Quarter FY 2007/08 with 2400 customers averaging $17.00 per customer per billing month. Cable Television (CAN) revenue will increase 1% quarter-to-quarter for FY 2007/08 and 3% quarter-to-quarter for each year following. Mo hly Revenue by Product Line TOTAL TOTAL Fiscal AFN High Wholesale ACATV Monthly Annualized Year VOIP ISP Wireless Seed Internet Gross Gross 2007/08 $732 $2 586 $1 098 $18 239 $109 601 $140,073 $1 680,874 2008/09 $824 $3 143 $1 236 $19 495 $114 051 $147,296 $1,767,553 2009/10 $927 $3 821 $1 391 $20 305 $118,682 $154,746 $1,856,951 11 $1,044 $4 644 $1 566 $21 425 $123 507 $163 006 $1 956,078 2011/12 $1 175 $5,645 $1,762 $22,460 $128,516 $12 185 $171,743 $2,060,917 8 As avua FLOCY NCt'NOYP yo North NiORi Um A,16..As Rw , oregow_9,-52o Revenue Summary for Voice over Internet Protocol Tele hone Low Target High Target Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $366 $732 $1,464 $8,786 FY 2008/09 $412 $824 $1,648 $-9,8--88- FY 2009/10 $464 $927 $1,855 $11,129 FY 2010/11 $522 $1,044 $2,088 $12,526 FY 2011/12 $587 $1,175 $2,350 $14,098 VOIP (telephone) Revenue $2,500 $2.00 o: ---- �Lew Grecc MOntF1y $'.500. Ravenm - -Targc!O R MOnthp aranac $•1,000. -n-H19h Oroae Menthly Rar $500 so _ a z Revenue Sum ary for AFN Internet Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $2,510 $2,586 $2,664 $31,033 FY 2008/09 $2,825 $3,143 $3,492 $37,721 FY 2009/10 $3,180 $3,821 $4,577 $45,850 FY 2010/11 $3,579 $4,644 $6,000 $55,731 FY 2011112 $4,028 $5,645 $7,864 $67,741 AFN Internet Revenue $7,000 9 $6,000 ---- $5,000 �Lewcrecc $4,000 Menthly Ruranuc +.-Tergct Grecc $3,000 _ _._ Menthly Revenue $2,000 1 xlyh Grecc Monthly Raveme $1,000 $0 LL 9 ALK0,0 FL er Ne Nor yo NnYth Moues aLw Ave.,As Qw , oregow y752o Revenue Summarl for Wireless Internet Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $822 $1,098 $1,478 $13,178 FY 2008/09 $856 $1,236 $1,869 $14,832 FY 2009/10 $890 $1,391 $2 364 $16,694 FY 2010/11 $927 $1 566 $2 990 $18 789 FY 2011/12 $964 $1,762 $3,782 $21,148 AFN Wireless Revenue $9,000 p $8,000 ---- $7,000 -- $6.00o -�M1e Gene 11' fyrJ MonMly Rev<nue $5r000 � �Tmq<t Grocc $4,000 _ MonMIY R<vwy< $3,000 $2,000 MonMly Revenue $1,000 $0 Revenue Summary for High Speed Data Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $17,358 $18,239 $18,693 $218,870 FY 2008/09 $17,751 $19,495 $20,420 $233,939 FY 2009/10 $17,996 $20,305 $21,781 $243,662 FY 2010/11 $18,324 $21,425 $23,622 $257,101 FY 2011/12 $18,617 $22,460 $25,024 $269,518 AFN High Speed Data Revenue $9,000 $8,000 $7,000 $5,000 Mer.Mly R<vanu< $4,000 T<rg<t Grec< - MenMty Rer<nu< $3,000 _ -e-H1,h Grec. $2,000 MonMly Revenue $1,000 $0 g$ 10 ALhLCIAot FL Cr N[bNDY 90 North Mmth, RLn AVt..AS ¢wd, Oregon 9=527 Revenue Summa for Wholesale Internet Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $108,249 $109,601 $109,882 $1,31-512-1-3 FY 2008/09 $110,431 $114,051 $116,625 $1,368,616 FY 2009/10 $112,656 $118,682 $123,782 $1,424,187 FY 2010/11 $114 926 $123,501 $131,377 $1 482 014 FY 2011/12 $117,242 1 $128,516 1 $139,439 $1,542 190 Wholesale Internet Revenue ♦�a,m aa,m 0ns,m ,.1� Low Gros ♦m,rn --�-•� Monthly Revenac 01a,m --� -�-Target Cross yat,m Monthly Revenue High Gross Monthly Revenue 0ns,nt fnr,m ry ry /12009110■v2010111 1v2011012 200A03. 2000104 Revenue Summa ry for Cable Television Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $7,758 $7,816 $7,934 $93,795 FY 2008/09 $8,013 $8,546 $9,245 $102,557 FY 2009/10 $8,339 $9,619 $11,237 $115,429 FY 2010/11 $8 895 $10,826 $13,659 $129,916 FY 2011/12 $9,629 $12,185 $16,603 $146,222 Cable Television Revenue $19,000 $11.000 @ _ $15.000 Monthly $13.000 Revenge �Tnrget Grga: $11,000 Monthly Revenue _ -a-High Gros: $9,000 - Monthly Revenue 31.000 {5,000 11 A.Siitvw a Ft, er Network -90-NIrtii rneuwtAm Ave.,AsKai&of, Oreyow 97520 Current Financial Summary The year to date, July through December, 2006, financial statement for the Telecommunications Fund showed that AFN was on track for budgetary expenses and was ahead on revenue. This is in large part due to fewer losses in CAN subscriber counts and net gains in billable internet accounts. Additionally, we are under-spending our marketing budget. In summary, AFN's financial outlook is favorable. Operational losses have been stopped and customer counts are higher than anticipated immediately following the transition of the CAN product line.As a result, revenues are higher than were initially projected. 2007 YTD as of 12/31/06 13e..e. a 2007 Adopted $1,774,000 $1,879,843 YTD Actual $1,196,098 $1,001,390 Ito a o e 67.42% 53.27% - Year to Date Financial Summary ::.000,00: . $',a:0 " stwo,000 :,0:0,0:0 $'.x00,000 $'.000,000 a2001A�t,t am st00,000 rr VVUA.,°'�' :40:,000 $000,000 WW WOMMUR :!00,000 TO Expense 6 A.GhLaw a F0 er NeONDrlo 90 NoYt M,K"KtaLw Ave..As htnvO, Oregon 9,-520 x � ; f �'I Five Year Forecast The following table is a summary of revenues, expenditures, and the associated "net'for the next five fiscal years. This includes all capital expenses for each year. Since the capital outlay for FY 2007/08 is larger than the following years due to the need to regain network health, the 2007/08"net" operational cash flow is lower. For subsequent years, we project annual revenue growth of approximately 5%. Total Annual Total Annual Total Gross Gross Annualized Revenue Expense Net FY 07/08 $1,680,874 $1,640,108 $40,767 FY 08/09 $1,767,553 $1,558,036 $209,516 FY 09/10 $1,856,951 $1,613,540 $243,410 FY 10/11 $1,956,078 $1,597,767 $358,311 FY 11/12 $2,060,917 $1,659,369 $401,548 Revenue/Expense Summary $2,500,000 R $2,000,000 $1,500,000 ®Total:Annual Gross Revenue $1,000,000 ■Total Annuel - - }Gross.Expense $500,000. FY FY FY 'FY FY 07M 08!09 09110 -.10M1 11!12 7 As aw Mer Networ 90 NOrt MoUwt21,v,AV,,.,AS aw , DYeom_9-520 Revenue Summary by Category The assumptions made in projecting revenue are as follows: 1. Voice Over Internet Protocol (VOIP) and AFN Internet Service Provider (ISP) revenues will increase quarter-to-quarter by 5%. 2. Wireless Internet revenue will increase 3% quarter-to-quarter. 3. High Speed Data revenue will increase 2% quarter-to-quarter. 4. Wholesale Internet revenue (revenue from other ISP's)will increase 1% quarter-to- quarter. 5. Ashland Home Net will start 1 b`Quarter FY 2007/08 with 2400 customers averaging $17.00 per customer per billing month. Cable Television (CATV) revenue will increase 1% quarter-to-quarter for FY 2007/08 and 3% quarter-to-quarter for each year following. Mo My Revenue by Product Line TOTAL TOTAL Fiscal AFN High Wholesale Monthly Annualized Year VOIP ISP Wireless Seed Internet CATV Gross Gross 2007/08 $732 $2,586 $1,098 $18,239 $109,601 $7 816 $140,073 $1,680,874 2008/09 $824 $3143 $1,236 $19495 $114,051 $8,546 $147,296 $1,767,553 2009/10 $927 $3,821 $1,391 $20,305 $118,682 $9,619 $154,746 $1,856,951 2010/11 $1044 $4644 $1,566 $21,425 $123,501 $10,826 $163,006 $1956,078 2011/12 $1,175 $5,645 $1,762 $22,460 $128,516 $12,185 $171,743 $2,060 917 8 As Rn RL er Ne Nor 90 NnYtk Ntouwtnun Ave.,As nw , oreevn 97520 Revenue Summary for Voice over Internet Protocol Tele hone Low Target High Target Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $366 $732 $1,464 $-8,7-86- FY 2008/09 $412 $824 $1,648 $9,888 FY 2009/10 $464 $927 $1855 $11,129 FY 2010/11 $522 $1,044 $2,088 $12,526 FY 2011/12 $587 $1,175 $2,350 $14,098 VOIP (Telephone) Revenue $2,500 I' I , ' $2,000 �-br Groes MentlJy Rerewe $1.500 � �Targc[6rocn MoniM1ly Reranne -+-MIgM1 Groan MentM1ly 1.0010 R..enne $500 $0 L9 L9 � � s Revenue Sum ary for AFN Internet Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $2,510 $2,586 $2,664 $31;033 FY 2008/09 $2,825 $3,143 $3,492 $37,721 FY 2009/10 $3,180 $3,821 $4,577 $45,850 FY 2010/11 $3,579 $4,644 $6,000 $55,731 FY 2011/12 $4,028 $5,645 $7,864 $67,741 AFN Internet Revenue - $7.000 $6.000 $5,000 $4'000 MentM1ly Revenue -�-Taiga Grow $3,000 MentM1ly Rcyenua $2,000 x1gM1 cretin MoneM1ly Revenao $1.000 $0 9 As aln. FL er Ne Nor 90 Nnrt Mouw aL✓ Ave.,Rs aw , oregow_9,7523 Revenue Summarl for Wireless Internet Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $822 $1,098 $1,478 $13,178 FY 2008/09 $856 $1,236 $1,869 $14,832 FY 2009/10 $890 $1,391 $2,364 $16,694 FY 2010/11 $927 $1,566 $2,990 $18,789 FY 2011/12 $964 $1,762 $3,782 $21,148 AFN Wireless Revenue $9,000 $8,000 $7,000 $6,000 I.ow c.eee U {4F{;Ii+a" MenUly Revenue $5,000 - +TargetGren ' $4,000 MonUly Ravc,wn' $3,000 - n- -�XIgM1 Grecc $2,000 MenUly Ravmue $1,000 $0 Revenue Summa for High Sp eed Data Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $17,358 $18,239 $18,693 $218,870 FY 2008/09 $17,751 $19,495 $20,420 $233,939 FY 2009/10 $17,996 $20,305 $21,781 $243,662 FY 2010/11 $18,324 $21,425 $23,622 $257,101 FY 2011/12 $18,617 $22,460_L_125,024 $269,518 AFN High Speed Data Revenue $9,000 $8,000 $7,000 $ ,000 $I Y f MoneM1ly R<ranaa $55,000 �Tmget Crean $4,000 Menteq Revenue $3,000 -k-Xi9M1 Grecc $2,000 - MenUly Revenue $1,000 $0 8 g _ 10 As Ka. Fter Newor 90 North MouotoLA Ave_As aA , OreeoA 97520 Revenue Summa for Wholesale Internet Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $108,249 $109,601 $109,882 $1,315,213 FY 2008/09 $110,431 $114,051 $116,625 $1,368,616 FY 2009/10 $112,656 $118,682 $123,782 $1424,187 FY 2010/11 $114,926 $123,501 $131,377 $1,482,014 FY 2011/12 $117,242 $128,516 $139,439 $1,542,190 Wholesale Internet Revenue i1a,m Ne,rn Nss,m - -Low Gros: Nn'm Monehly Revenge Na,m 91rr,rrr --�-Target Gros: MontAly Revenge Nn,m pa,m ® -t-MigA Gros: Monthly Rev<ngg Nrs,nr Morn FY fY rY2009110 FY2010111 FY2011112 2007101 2008109 Revenue Summa ry for Cable Television Low Target High Gross Gross Gross Gross Monthly Monthly Monthly Annualized Revenue Revenue Revenue Revenue FY 2007/08 $7,758 $7,816 $7,934 $93,795 FY 2008/09 $8,013 $8,546 $9,245 $102,557 FY 2009/10 $8 339 $9,619 $11,237 $115,429 FY 2010/11 $8.895 $-10,8-2-6- $13,659 $129916 FY 2011/12 $9 629 $12,185 $16,603 $146,222 Cable Television Revenue $13.000 . $17.000 $15,000 ,.� -Lew Groad $13,000 . 0�' Menehly Revenue - Tug<t Gross 111,000 Menthly R<vmuc $3.000 --t-High Greve Monthly R<venge $7,000 $5,000 <k Irk ,S' S P1 Fb er Netwooz 90 NOr't MCUwtpbv,.A��..AS GIw OrEyCw9 520 Expense Detail The below spreadsheet provides more detail of expense history and projections. Following City practice, we applied an annual 7% increase to Personal Services to make sure that increases in health insurance and other benefits were covered. We applied an annual 3% increase to Materials and Services to account for inflation in these areas as well. Capital expenses are based on actual projections for Capital purchases and planned replacement. More specifics for Capital follow on the next page. Expense FY 2004 FY 2005 FY 2006 FY 2007 Historical Historical Historical Projected FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Personal Services Salaries and Wages $457270 $476739 $466858 $399245 $363026 $354766 $384,828 $426,469 $439806 Frin eBenefits $208,926 $197369 $186895 $237719 $169525 $198499 $215209 $197847 $236819 Total Personal Services $666196 $674108 $653753 $636964 $53 551 $553265 $600038 $624316 $676625 Materials and services Su lies $253533 $263998 1 $147779 $307696 $321252 $327735 $329,718 $339,610 1 $341,714 Rental,Repair, Maintenance $128887 $95372 $111284 $116974 $71023 $73202 1 $73543 $75,802 1 $76168 Communications $31478 $15017 $11941 $12009 1 $5126 $5280 1 $5,280 $5438 $5438 Contraclural Services $196,033 $410.368 $179.500 $44,663 $52.991 $62,009 $63.366 $65 267 $66,707 Misc.Charges and Fees $379833 17571 $521734 $380138 $277462 $272617 $275506 $283,907 $286983 Other Purchased Services $740.922 $832.042 $820,030 $216.032 $58.703 $69,653 $71,814 $74151 $76459 Total Materials and Svcs 1 $1730686 $2034368 $1792268 $1077511 $786556 $810,497 $819,228 $844,176 $853,469 Capital Equipment $0 0 $3910 $70,000 $201.000 $134275 $134275 544,275 $44275 Improvements Other Than Bld s $154,146 $64,311 $75,222 0 $120,000 $60,000 $60.0001 1 $85,000 $85 000 Total Ca ital $154146 $64311 $79132 $70000 $321, 00 $1 275 $194275 $129275 $129275 TOTAL $2551028 $2772787 $2525153 $1784475 $1640108 $1558036 $1613540 51597767 57659369 Revenue Total Internet Revenue $950645 $1113216 $1248262 $1289289 $1368210 $1431057 $1497860 $1,569061 $1,645,177 Total Cable Revenue $931761 $1140097 $1225884 $415171 $93795 $102557 $115429 $129,916 $146,222 Total Advertising Revenue $2906 $7347 $1198 $9604 $0 $0 $0 $0 $0 Total High Speed Revenue $268688 $217417 $220034 $203168 $218870 $233939 $243,662 $257,101 $269,518 TOTAL $2,154,000 $2,478,077 $2,695378 $1,917,232 $1680874 $1,767,553 $1,856,951 $1,956,078 $2,060,917 OPERATIONAL NET (Does Not Include Capital) 4242882 4230399 1 $249357 $202757 $361767 $403791 $437685 $487586 $530823 NET Includes Capital) •5397028 1 4294710 $170225 $132757 $40767 $209516 $243410 $358,311 $401548 Contribution to AFN Debt Service I $356000 $200000 $250000 $350000$ $380000: :Ending Fund Balance Minimum of 20%Reserve 5336 11 $345727 5339135 $347 $968996 12 As aw Pr 7e r Ne .dor 90 North Mou"tRL,Ave.,Ashtcivo, Oregow 97520 Capital The Capital projections listed in the table below are the same as included in the City's Capital Improvement Plan. Unlike in years past, we are accounting for depreciation and planned replacement of equipment and network components by setting aside a percentage of the value of an item each year in advance. For example, next year, we will replace the Cable Modem Termination System (CMTS). Each year following, we set aside 20% of the value of a new CMTS based on a projected five year life span. This results in the City not having to have spikes in the Capital expense projections for AFN after next year. Put Reroute Fiber wireless Fields Maps in Network Buildout CMTS Routers Pro'ect GIS Refresh 2007/08 $15,000 $125,000 $20000 $40,000 $20000 $10,000 2008109 $0 $25,000 $4,000 $0 $0 $10,000 2009110 $0 $25,000 $4,000 $0 $0 $10,000 2010/11 $0 $25,000 $4,000 $0 $0 $10,000 2011112 1 1 $25,000 $4 000 $0 $0 $10,000 2012/13 $0 $25000 $4000 $0 $0 $10,000 2013114 $0 $25.000 $4,000 $0 $0 $10,000 Under ground WIMax FTTP Machine TDR OTDR Locator TOTAL 2007108 $0 $50,000 $23,000 $2,000 $11,000 $5,000 $321,000 2008/09 $100000 $50000 $2300 $400 $1575 $1000 $194275 2009/10 $100000 $50000 $2300 $400 $1575 $1000 $194275 2010111 $10000 $75000 $2300 $400 $1575 $1,000 $129275 2011112 $10000 $75000 $2300 $400 $1575 $1,000 $129275 2012113 $10000 $75000 $2300 $400 $1575 $1,000 ;129,275 2013/14 $10,000 $75 000 $2300 $400 $1,575 $1,000 ;129 275 13 Ash!.Cw0 FL er NetWDY _90 Nortk Mou✓ Pb , AVE.,ASIIWO, OYeyo�97520 Network Refresh and a New CMTS As stated during the May 1, 2006 City Council meeting and during the IT Departmental budget briefing, there has been no planned replacement of key network components to date. As a result, some of those components are past"end-of-life" and must be replaced immediately. The most pressing need is the replacement of the Cable Modem Termination System (CMTS). It is a system of devices located in the cable head-end that allows AFN to offer high-speed Internet access to home computers. The CMTS sends and receives digital cable modem signals on our cable network, receiving signals sent upstream from a user's cable modem, converting the signals into IP packets and routing the signals to one of our Internet Service Providers for connection to the Internet. The CMTS also can send signals downstream to the user's cable modem. Cable modems cannot communicate directly with each other; they must communicate by channeling their signals through the CMTS. Current CMTS New CMTS Processor Utilization @ 100% Scalable DOCSIS 1.1 Compliant 2.0 & Upqradeable Quality of Service Functionality Minimally Supported Fully Supported Download Speed 3-5 Mb s Maximum Greater than 10 Mb s Upload Speed 1 Mb s Maximum Greater than 10 Mb s Vendor Support Features Fixes No Longer Supported Fully Supported The new CMTS will allow AFN to provide the next level of internet service with significantly faster speeds and better quality of service. In addition to the replacement of the CMTS, the AFN staff will do planned maintenance on and replacement of other key network components to include; optical nodes, power supplies and batteries, and other active devices in the outside plant. 14 ASKRvO FL er Netwooz yO Nort Mokw aenAVE.,AS110AC1, Oregon_97520 The Future With our recent restructuring of AFN so fresh in our minds, talking about the future is critical. Since AFN has technology centric services and the one constant in technology is that it keeps changing, the AFN team must constantly look to and plan for the future in order to ensure the community continues to enjoy the benefits of state of the art telecommunications products and services. While the future of technology is rarely crystal clear, we can make educated projections of future needs and what products will best fill those needs. This business plan allows for the continued build-out of the wireless internet product we currently have deployed in parts of the city. It also includes a planned migration to a WiMax solution that is the next generation of wireless internet. We've included continued fiber to the premise installations for those with high-bandwidth application requirements and the plan includes the purchase and installation of a new CMTS. There are other, new technologies that are just now beginning to be seen in the market that we will watch to see if they provide warranted benefit to Ashland. We will update the capital plan as appropriate to make sure that the investment in the Ashland Fiber Network stays meaningful well into the future. Finally, we will continue to fine tune this plan as we get better run rates and are able to more accurately trend both expenses and revenues. 15 ASKCIw d F er Networ 90 Novt MokwtPww Ave..as a , oregm 9;520 DOCUMENTS SUBMITTED AT THE FEBRUARY 6, 2007 REGULAR COUNCIL MEETING x N P �,.: " � °.$� a :e. :+-v€�s. .� . �ixa ,.� , r �.1„ +', .`aa:"o a`'k.k.�•nYk >y. N x O Wir CN N O 17 C14 ff x 5 '>W, i?- € +' :zc. ..�.w°a +Sw.5nd' -" , €'+ , :a, 415- ^0 ya t1 ,. 'o p y O a Y � i s �tft e w s 't, > n -j r �_.-. r O IL £. �r . Co d N CL an ry.+', T d m. WFIK WC t6 %Y k4Vt;`"i S dF3Ke . ' `T as ��`- r. i '%�' xs-r'$a' r°'.-„ .' N u � i mt, �T s.eok 'rr� Y N CL "• �i: x £ h n .'. r O 1 y Q r n'rvu � xk} O 7 a ♦ *:t*e e5, y jl. , °, �,'x Tit' .� Vv+ '{`.'L�+ !! t'` N 1'= l — jl QJ q r O s ? �Fa.95•L' :ry � a- i Y'3 n� ��`av"+'}�-' ^^ �' k�rki a.,�k''i«i x S"a�i�iyfie- '�"L�+' � m sx:a C) � & °o 'LL6 .x`vi' N CD ♦+ 'i + TMy` a.,i9`3^ F L �,+� I`rv'*++,�ste'� - W c �h o N O O O O O O O O O O O O O O O O O O O LO C W O Vf (p (p (fl U9 Barbara Christensen -[Council business]Oregon Laws related to Transient Occu ancy Tax Pa e 1 From: "Martha Bennett" <bennettm @ashland.or.us> To: <council_business @list.ashland.or.us> Date: 2/6/2007 155:28 PM Subject: [Council—business] Oregon Laws related to Transient Occupancy Tax Council -- Here are the relevant portions of Oregon statutes that apply to the transient occupancy tax. We'll have it as a hand out tonight. Martha ORS 320.300 Definitions(only the relevant ones) (7) "Tourism promotion" means any of the following activities: (a)Advertising, publicizing or distributing information for the purpose of attracting and welcoming tourists; (b) Conducting strategic planning and research necessary to stimulate future tourism development; (c) Operating tourism promotion agencies; and (d) Marketing special events and festivals designed to attract tourists. (8) "Tourism promotion agency" includes: (a)An incorporated nonprofit organization or governmental unit that is responsible for the tourism promotion of a destination on a year-round basis. (b)A nonprofit entity that manages tourism-related economic development plans, programs and projects. . (c)A regional or statewide association that represents entities that rely on tourism-related business for more than 50 percent of their total income: (9) "Tourism-related facility": (a) Means a conference center, convention center or visitor information center; and (b) Means other improved real property that has a useful life of 10 or more years and has a substantial purpose of supporting tourism or accommodating tourist activities. (10) "Tourist" means a person who, for business, pleasure, recreation or participation in events related to the arts, heritage or culture, travels from the community in which that person is a resident Barbara Christensen - Council business] Oregon Laws related to Transient Occupancy Tax Page 2 to a different community that is separate, distinct from and unrelated to the person's community of residence, and that trip: (a) Requires the person to travel more than 50 miles from the community of residence; or (b) Includes an overnight stay. ORS 320.350 Local transient lodging tax moratorium; exceptions; uses of revenues. (1)A unit of local government that did not impose a local transient lodging tax on July 1, 2003, may not impose a local transient lodging tax on or after July 2, 2003, unless the imposition of the local transient lodging tax was approved on or before July 1, 2003. (2)A unit of local government that imposed a local transient lodging tax on July 1, 2003, may not increase the rate of the local transient lodging tax on or after July 2, 2003, to a rate that is greater than the rate in effect on July 1, 2003, unless the increase was approved on or before July 1, 2003. (3)A unit of local government that imposed a local transient lodging tax on July 1, 2003, may not decrease the percentage of total local transient lodging tax revenues that are actually expended to fund tourism promotion or tourism-related facilities on or after July 2, 2003. A unit of local government that agreed, on or before July 1, 2003, to increase the percentage of total local transient lodging tax revenues that are to be expended to fund tourism promotion or tourism-related facilities, must increase the percentage as agreed. (4) Notwithstanding subsections (1) and (2) of this section, a unit of local government that is financing debt with local transient lodging tax revenues on November 26, 2003, must continue to finance the debt until the retirement of the debt, including any refinancing of that debt. If the tax is not otherwise permitted under subsection (1) or(2) of this section, at the time of the debt retirement: (a)The local transient lodging tax revenue that financed the debt shall be used as provided in subsection (5) of this section; or (b) The unit of local government shall thereafter eliminate the new tax or increase in tax otherwise described in subsection (1)or(2) of this section. (5) Subsections(1) and (2) of this section do not apply to a new or increased local transient lodging tax if all of the net revenue from the new or increased tax, following reductions attributed to collection reimbursement charges, is used consistently with subsection (6)of this section to: (a) Fund tourism promotion or tourism-related facilities; (b) Fund city or county services; or Barbara Christensen -[Council business]Oregon Laws related to Transient OccupancyTax Page 3 (c) Finance or refinance the debt of tourism-related facilities and pay reasonable administrative costs incurred in financing or refinancing that debt, provided that: (A)The net revenue may be used for administrative costs only if the unit of local government provides a collection reimbursement charge; and (B) Upon retirement of the debt, the unit of local government reduces the tax by the amount by which the tax was increased to finance or refinance the debt. (6)At least 70 percent of net revenue from a new or increased local transient lodging tax shall be used for the purposes described in subsection (5)(a) or(c) of this section. No more than 30 percent of net revenue from a new or increased local transient lodging tax may be used for the purpose described in subsection (5)(b)of this section. [2003 c.818 §11] Council—business mailing list Council_business@list.ashiand.or.us hftp://Iist.ashiand.or.us/mailman/listinfo/council business CC: Richard Appicello <appicelr @ashland.or.us> michael dawkins vnichaeltdawkinsOphoo.corm I& Ashland February 5, 2007 3:09:06 PM PST melvwl@Pcharter.net For the record, a man named Glen Jackson of the early 50's pulp a young English professor out of SOC and set him up in a public relations business located in the old Ashland Hotel. That man was my father. In the mid 50's, my family started skiing-at the old Mt Shasta Ski Area,Tomahawk, and joining the few valley skiing families at Trail Camp,just down the mountain from present day Mt. Ashland_ Dad, being Glen's protege, pitched the idea of a ski area at Mt. Ashland, and Glen said, " Make it happen ". He bankrolled most of my fathers efforts for the next three years, to fly back and forth to Washington to get the permits,to secure the financing,and all of the general this that went to starting an area-design,what kind of lifts, where to get them,lodge, staff,etc. Dad was the general manager of the mountain those initial first years of MA"s existence. In December of 1954 we had the most devastating flood of my lifetime and talking with old timers around then, in theirs. After the rain quit, I drove Dad up to the lodge,to a sight I will never forget- In the first of many sox toot plus gullies, Sid, the mountain manager, had our ancient and only snocat stuck for what turned out to be for weeks. Nov it was well known in these early days that I was thick enough between the ears that neither speed or slope, or getting lost in these mountains I had explored since pre grade school made me appreciate ski area boundaries, or the hike back out on skis. So while Dart, Sid, Buck&Irene, Leroy&Ron all had a meeting on what was to be done, it was suggested that I might go see if the rest of the mountain looked as bad as what we could see from the parking loL This was not a fun journey, the gullies were not some form of later day half pike, they were deep, irregular with dirt and rock mixed in the snow_ I slowly made my way to where the ski slopes ended and tree began. it still wasn't fun, but it was at least skiable.._. and this is the point, all of those trees divert the run off. So for you two councilors who 1 have heard second hand"What is the big deal about seventy acres of trees?We have a historic pattern of big snow packs and then the pineapple express happening in a nine year cycle,and this ill conceived plan adds more open slopes to the very beginning of the middle branch. One of my great discoveries in late grade school was the trail from the loop road down to where the East& Middle forks flow into Reeder Reservoir. I run there three or four times a year, so while Mt.Ashland is a valley wide resource,that was what it was meant to be, not just Ashlands, I cannot but help but be angry as I look out on Reeder in the early Winter at low water,with sift build up year after year noticeably more so, that for the recreational value of a relatively few how potentially devastating it could be for all of us that live in Ashland. For better or worse Mr. Mayor, Councilors,this is your legacy. Now that's room service! Choose from over 150,000 hotels in 45,000 destinations on Yahoo!Travel to find your fit httplfiarechase.yahoo.com/promo-generic-14795097