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HomeMy WebLinkAbout2012-1204 Council Mtg PACKET CITY OF ASHLAND Important: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit written comments to the Council on any item on the Agenda, unless it is the subject of a public hearing and the record is closed. Time permitting, the Presiding Officer may allow oral testimony. If you wish to speak, please fill out the Speaker Request form located new the entrance to the Council Chambers. The chair will recognize you and inform you as to the amount of time allotted to you, if any. The time granted will be dependent to some extent on the nature of the item under discussion, the number of people who wish to speak, and the length of the agenda. AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL December 4, 2012 Council Chambers 1175 E. Main Street Note: Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.E.] 6:30 p:m. Executive Session for Real Property Transaction pursuant to ORS 192.660(2)(e) and to consider information on records that are exempt by law from public inspection pursuant to ORS 192.660(2)(f) 7:00 p.m. Regular Meeting 1. CALL TO ORDER IL PLEDGE OF ALLEGIANCE III. ROLL CALL IV. SWEARING IN OF COUNCIL MEMBER MARSH V. MAYOR'S ANNOUNCEMENTS VI. APPROVAL OF MINUTES 1. Study Session of November 19, 2012 2. Business Meeting of November 20, 2012 VII. SPECIAL PRESENTATIONS & AWARDS None VIII. CONSENT AGENDA 1. Approval of commission, committee, and board minutes 2. A resolution declaring the canvass of the vote of the election held in and for . the City of Ashland, Oregon on November 6, 2012, and Mayoral proclamation 3. Resolution instructing the US Congress to approve a constitutional amendment granting Congress and the States authority to regulate campaign contributions and expenditures and to determine the nature and extent of COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9 VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US privileges to entities other than natural persons 4. Approval of an amendment to the cable television franchise agreement with Charter Communications, Inc. 5. Letter of intent for Washington Street extension to Tolman Creek Road 6. Approval of a public art element for the downtown Plaza 7. Resolution amending City grant application policy and process IX. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. 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 §2.04.050}) 1. A resolution authorizing a rate increase for solid waste collection and hauling services provided by Recology Ashland Sanitary X. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. The Mayor will set time limits to enable all people wishing to speak to complete their testimony.) [15 minutes maximum] XI. UNFINISHED BUSINESS None XII. NEW AND MISCELLANEOUS BUSINESS 1. Annual appointments to the Citizen Budget Committee 2. Appointment to Audit Committee at-large citizen and Council/Mayor liaison 3. Portable toilet adjacent to Calle Guanajuato recycling area 4. Procedure on selection of Park Commissioner position #3 XIII. ORDINANCES: RESOLUTIONS AND CONTRACTS 1 Second reading, by title only, of an ordinance titled, "An ordinance amending the City of Ashland Comprehensive Plan to adopt the Housing Needs Analysis as a supporting document to the City of Ashland Comprehensive Plan" 2. First reading, by title only, of an ordinance titled, "An Ordinance authorizing full faith and credit bonds for multiple purposes" XIV.. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS XV. 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 BROADCAST LIVE ON CHANNEL 9 VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US City Council Study Session November 19, 2012 Page I of 3 MINUTES FOR THE STUDY SESSION ASHLAND CITY COUNCIL Monday, November 19, 2012 Siskiyou Room, 51 Winburn Way Mayor Stromberg called the meeting to order at 5:31 p.m. in the Siskiyou Room. Councilor Voisin, Slattery, Silbiger, and Morris were present. Councilor Lemhouse was absent. 1. Look Ahead City Administrator Dave Kanner reviewed items on the Look Ahead. 2. Discussion of city grant application process Administrative Services Director Lee Tuneberg explained staff was seeking agreement, consideration, and direction on the following: Assumptions • Council intends to continue this grant process at similar funding levels as in previous years relative to the Transient Occupancy Tax (TOT) revenues • The tourism component is the only absolute funding category (State Law) • Members of the Citizen's Budget Committee will continue to determine the allocations guided by Council approved policies and overall funding level approval • Grant awards will be based on the overall merit of the application and no distinction will be made based on "seed funding", ongoing program funding requests, or number of years of grant funding awarded • The Chamber of Commerce and Oregon Shakespeare Festival will continue to be directly awarded funding with no formal application process (annual TOT allocation resolution) • The Fiscal Year 2012-13 grant process was an improvement in incorporating the Council's Economic Development Strategy goals and actions • Applicants will continue to provide written applications and not orally present their request to the grant sub-committee Mr. Tuneberg addressed the biennial budget and was doubtful the City could award grants for two years at one time. However, the biennium would allow more time to evaluate the grant process. He went on to explain the allocations OSF (Oregon Shakespeare Festival) and the Chamber of Commerce VCB (Visitor Convention Bureau) received complied with expenditure requirements from the state and TOT. Councilor Slattery added in the past a specific percentage of the TOT collected went back into the industry to promote Ashland through tourism and conventions. City Administrator Dave Kanner referenced the 2003 State law that required a certain percentage of TOT go towards tourism, facilities, and promotion. Recommendations • Continue using the eligible activities and evaluation criteria from last year's policy, with the scoring sheet available as a optional tool for each grant sub-committee member • Assign Staff with the task of conducting preliminary scoring/ranking/vetting for the sub- committee • Limit the sub-committee to five members of the Budget Committee, possibly with a defined Council/citizen ratio. • Maintain the $5,000 minimum grant award threshold. City Council Study Session November 19, 2012 Page 2 of 3 Councilor Silbiger suggested an annual process for the Economic Development Grants, treat larger grantees similar to OSF and the Chamber, and have them occur every two years, and score smaller grants on the four categories only, not the sub-categories. Additionally the sub-committee should do the preliminary application scoring. Council supported using four categories to score smaller grants. Council did not support pre-scoring by staff or limiting the sub-committee to five members. Council majority supported retaining the $5,000 award threshold, smaller grants created more staff time. Opposing comments thought smaller grants would allow more sustainability recipients to apply and the emphasis should be providing smaller groups an opportunity instead of focusing on efficiency. Council discussed asking applicant's questions versus having them do a presentation. Councilor Voisin suggested three-minute presentations. Council supported the suggestion, thought it could occur over two nights but did not want video presentations. Policy Issues • Should each grant category have a specific allocation of the overall grant funds available rather than having no minimum or maximum award per category? (other than required Tourism) • Should OSF and Chamber allocations be a fixed dollar amount or a percentage of available funds? • Should excess grant funds (those not directly awarded to OSF/Chamber) restricted and defined by Oregon Revised Statutes (ORS) for tourism specific uses continue to be included in the Grants process or separated out in some manner? • Would the process function better with a different review process, possibly outside of the biennial budget process? Council thought the previous scoring worked well. Council did not support specific allocations for the ' available grant funds except for the required allocations for Tourism. Council consensus that OSF should continue with a fixed dollar amount of $110,000 and the Chamber continue receiving a 56% fund percentage. Staff would provide Councilor Voisin with a copy of the Chamber of Commerce contract. Mr. Tuneberg clarified the City had the latitude of a biennium to make adjustments to grant allocations during the second year if needed. Council agreed that excess grant funds restricted and defined by ORS for tourism remained in the Grants process. Council did not support a review procedure outside of the budget process. Project Manager Adam Hanks explained changes made to the application. Council suggested replacing the Client Patron Age Percentage from the Client Demographic Profile with actual participant numbers. In the Revenue table under the Grants Program Budget on the grant application, remove or spell out City of Ashland General Funds (E&C Grant) and overall, reduce the application to four pages. Another suggestion was a short form for small grants. Mayor Stromberg added staff should work with specific applicants for their input on paring down the application. Mr. Kanner thought with the exception of question #8. What percentage of your total annual revenue would come from this grant if it were fully awarded?, staff could eliminate questions 6-7 and 9-11. Council would forward their changes to staff. Mayor Stromberg suggested taking $10,000 either this year or the next, divide it into four $2,500 grants as a test pilot, use the same criteria, and monitor the results. City Council Study Session November 19, 2012 Page 3 of 3 3. Discussion of whether to schedule Council action on whether to waive penalties and delinquent taxes owed (Request of Councilor Voisin) Mayor Stromberg read the memo, noted Mr. Roth's previous requests in the past, and thought the Council was the only authority to make a decision regarding his settlement with the City. One option was deciding whether to bring it to a Study Session to determine whether it went to a regular meeting and the second was adding it directly to a regular meeting for action. Councilor Voisin wanted to discuss the history of Mr. Roth owing the City money and the process involved. She proposed having Council authorize the City Administrator to make decisions regarding Mr. Roth's payment plan. City Administrator Dave Kanner added the settlement agreement was not clear on who in the City could waive anything within the agreement so it defaulted to Council. Mr. Roth was requesting to lower the payments and extend the payment schedule, not waive the actual debt. Council agreed the City Administrator should have the authority to modify the payment schedule regarding the settlement but would not support reducing the overall amount. Meeting adjourned at 6:45 p.m. Respectfully submitted, Dana Smith Assistant to the City Recorder ASHLAND CITY COUNCIL MEETING November 20, 2012 Page I of S MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL November 20, 2012 Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Stromberg called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers. ROLL CALL Councilor Voisin, Morris, Lemhouse, Slattery, and Silbiger were present. MAYOR'S ANNOUNCEMENTS Mayor Stromberg announced vacancies on the Public Arts Commission, Transportation Commission, Tree Commission, and Firewise Commission. APPROVAL OF MINUTES The minutes of the Study Session of November 5, 2012 and Regular Meeting of November 6, 2012 were approved as presented. SPECIAL PRESENTATIONS & AWARDS Ashland Community Hospital (ACH) Board Chair Doug Gentry explained Asante proposed a merger style affiliation where ACH would be part of the Asante system. ACH assets and liabilities would most likely combine and there were local governance options to maintain ACH's unique organization. Providence proposed a multi-year management agreement that would have kept ACH separate and independent with substantial operating help but no direct relief from their debt. The board was impressed with both proposals but chose an affiliation with Asante to ensure the long-term survival of the hospital. Asante would go through due diligence before finalizing the term sheet and letter of intent. It would take a minimum of 60 days for that process. A separate negotiation would occur between the City and Asante regarding the lease. Negotiations and due diligence were covered by a mutual confidentiality and exclusivity agreement. Once the term sheet and letter of intent were complete, ACH would come back to Council for public comment. In the interim, Asante would establish consulting resources at ACH to help with operational questions and issues. Chair Gentry clarified the preference for an affiliation with Dignity Health was not a financial one. Both original proposals from Dignity Health and Asante were similar. Asante was a two hospital organization with almost a half billion dollars in cash reserves. What Mr. Gentry could disclose regarding local governance involved ACH having a seat at the Asante Board, and physician privileges and bylaws. Asante would provide ACH access to capital but had more economies of scale than Dignity Health. Shared services would result in job loss or reassignments at ACH. CONSENT AGENDA 1. Approval of commission, committee, and board minutes 2. Approval of a public contract for utility wood pole inspections and remedial treatment 3. Resolution authorizing military flyovers for Memorial Day and Independence Day ceremonies Councilor Voisin pulled Consent Agenda item #3 for further discussion. Councilor Morris/Slattery m/s to approve Consent Agenda items #1 and #2. Voice Vote: all AYES. Motion passed. ASHLAND CITY COUNCIL MEETING November 20, 2012 Page 2 of 5 Councilor Voisin voiced concern on the authorization of military flyovers due to problems it might create for veterans with PTSD (Post Traumatic Stress Disorder). She also had safety concerns regarding flyovers and wanted additional citizen input. Councilor Voisin m/s to table Consent Item #3 until the first meeting in January. Motion died for lack of a second. Jo French/300 Kent Street/Explained there was two types of flyovers, civilian and military. The City had no control over civilian flyovers. The military did flyovers for celebrations and memorials typically on July 4th and Memorial Day. Approximately 42,000,000 people had served in the armed forces with over 1,250,000 deaths during service. The City was involved with this request because it owned the cemetery. It was difficult for Mr. French to understand attaching a stigma to an aircraft that went against the lives of the people who died helping make this country great. Councilor Lemhouse/Slattery m/s to approve Consent Agenda item #3. Voice Vote: Councilor Morris, Lemhouse, Slattery and Silbiger, YES; Councilor Voisin, NO. Motion passed 4-1. PUBLIC HEARINGS 1. Adoption of a supplemental budget and a resolution creating appropriations within the FY 2012-13 budget. Administrative Services Director Lee Tuneberg explained the request for $1,435,566 in appropriations would go to the following funds: A. General Fund - Police Department: $227,163 in forfeiture monies received for the Police station remodel. B. General Fund - Police Department: $46,800 in federal grant money to participate in the Southern Oregon High Tech Task Force. C. Airport Fund - Public Works, Materials & Services: $19,000 Equipment Fund loan to trim trees around the runway as required by the Federal Aviation Administration. D. Debt Service Fund: $280,397 prepayment from the Oregon Shakespeare Festival to pay off the state loan for the parking structure construction. E. Debt Service Fund: $364,795 interfund loan from the Central Service Fund, ending fund balance, to pay off the City's portion of the. state loan used to construct the Hargadine parking structure. F. Central Service Fund - Ending Fund Balance: $364,795 appropriations through a loan to accomplish item D. G. Equipment Fund - Public Works, Purchasing: $113,616 grant monies for firefighter equipment budgeted and replaced in the fund. The match will come from money paid into the sinking fund by the Fire Department. H. Equipment Fund - Interfund Loan: $19,000 appropriations through a loan to fund tree trimming at the airport. Public Hearing Open: 7:37 p.m. Public Hearing Closed: 7:37 p.m. Councilor Voisin/Slattery m/s to approve Resolution #2012-33. Voice Vote: all AYES. Motion passed. 2. Public hearing to consider raising electric rates Administrative Services Director Lee Tuneberg recommended a 5.3% rate increase effective January 1, 2013. Bonneville Power Administration (BPA) was anticipating a 7%8% increase in wholesale power and 12%-13% for transmissions resulting in a possible 9% increase just to purchase power. Purchase ASHLAND CITY COUNCIL MEETING November 20, 2012 Page 3 of S power and transmission costs made up approximately 50% of annual costs that could increase rates 5%- 6% in 2014. Staff also recommended a rate study that would coincide with the new 10-year Master Plan. Councilor Lemhouse expressed concern regarding water and electric rate increases and the lack of budget preparation for these utilities. He agreed with the rate study but wanted action from study results. Director of Electric Utility and Information Technology Mark Holden was in the process of developing a scope of work for the rate study with a target completion for the end of spring 2013 for the study and the new 10-year Master Plan. Mr. Tuneberg could not guarantee the rate study would offset annual rate increases due to BPA increases. The rate study and system plan would provide efficiency gains, show how to maintain load and demand, and look at options for what the City pays BPA. Mr. Holden added another aspect of the rate study would ensure parity against the different rate tiers. City Administrator Dave Kanner explained the City chose not to increase electric rates in fiscal years 2009 and 2011. In fiscal year 2012, the amount of debt doubled for the electric utility due to the Ashland Fiber Network (AFN). Rates were not sufficiently raised enough to cover the increased transfer to the AFN debt and attributed to the current problem the City was experiencing. AFN also created issues for other funds as well. Balancing the Electric Fund budget required raising rates. Selling the AFN system would not help because the City would retain the debt. Mr. Tuneberg noted Southern Oregon University (SOU) was considering a cogeneration plant in the next few years that could create spikes and dips in the power they purchased from the City and result in significant impacts to the rates the City pays BPA. Mr. Holden recently met with BPA who currently projected the City would go over the high water mark 2015. Councilor Voisin wanted conservation efforts factored into the rates with financial rewards for customers who conserved. Mr. Tuneberg clarified if SOU went off line, it would change the high water mark and Tier 2 ceiling for the City. BPA would reset both based on demand. Alternately, if SOU came back on line, it could force a spike and create higher rates for a period. Mr. Holden added the generation SOU was anticipating would not handle their entire load. Public Hearing Open: 8:02 p.m. Public Hearing Closed: 8:02 p.m. Councilor Lemhouse/Slatteiy m/s to approve Resolution #2012-34 and direct staff to issue requests for proposals to do an electric rate study. DISCUSSION: Councilor Lemhouse thought Council should make a goal to address utility rate issues. The rate study would determine where the City stood regarding rates and possible changes to the tier structure. Mr. Tuneberg explained adhering to Option 4 and increasing rates 2.62% would not meet existing costs and result in even higher rate increases in the future. BPA indicated changes in wholesale power and transmission charges every two years. Voice Vote: all AYES. Motion passed. PUBLIC FORUM Kyle Coroneos/583 Prim Street/Explained Saturday December 8, 2012 local musicians were celebrating the 90th birthday of Don Maddox who was the last surviving member of The Maddox Brothers and Rose, one of the most influential bands in the history of American music. He provided background on Mr. Maddox and the band's induction into Nashville's Country Music Hall of Fame. The band had also made Ashland their home for many years. He hoped the Mayor would declare December 8, 2012 Don Maddox ASHLAND CITY COUNCIL MEETING November 20, 2012 Page 4 of5 Day and invited the Mayor and Council to attend the party at the Ashland Community Center Hall December 8, 2012 from 2:00 p.m.-6:00 p.m. UNFINISHED BUSINESS 1. Special procurement for the purchase of Badger Water Meters Public Works Director Mike Faught explained the Comparison of the Net Present Values of the Current Meter Reading Program document served as the cost benefit analysis. Councilor Slattery thought the document should have included maintenance issues and meter reading costs. Mr. Faught noted the new meters would reduce a month long process to one week. Water Distribution Supervisor Steve Walker explained the new meters would emit or "bubble up" a signal every 9 seconds. Electric meters bubbled up data every 20 seconds. He was not sure there were meters that remained dormant until read. Mr. Faught explained labor costs were one of the larger percentages of the budget. Changing the type of meters would reduce labor and the cost of the product. Councilor Silbiger/Morris m/s the Council, acting at the local contract review board, move to approve the contract-specific special procurement for Badger water meters with Itron radio frequency reads. Voice vote: all AYES. Motion passed. NEW AND MISCELLANEOUS BUSINESS 1. Council acceptance of Fiscal Year 2011-2012 Comprehensive Annual Financial Report Councilor Silbiger noted Council had not appointed the Council Liaison or the Budget Committee member to the Audit Committee this year. Additionally, the October 22, 2012 Audit Committee meeting did not have enough members present for a quorum. Councilor Slattery was absent, Guy Nutter, Roberta Stebbins, and City Recorder Barbara Christensen were present, but the City Recorder was not a voting member. City Recorder Barbara Christensen explained the Audit Committee was comprised of four voting members and one non-voting member. There had been a vacancy on the Committee for a voting member for two years. At the October 22, 2012 meeting, Councilor Slattery was absent and the remaining three members proceeded unintentionally creating a quorum issue. Since the role of the Audit Committee was making recommendations, Council could accept the CAFR (Comprehensive Annual Financial Report) or postpone the item, allow the Audit Committee to meet as a quorum, make another motion, and schedule the CAFR to a future Council meeting. Council decided to pull the item and place it on the agenda for the next meeting. 2. Procedure on selection of Council Position #6 City Recorder Barbara Christensen provided updates on two of the candidates. Colin Swales withdrew his application and Ms. Christensen was unable to confirm whether Kevin Bemadt was registered to vote in Oregon and lived within city limits. Council could pre-select applications, determine interviews, there were no set rules on process other than Council needed to make a decision by December 26, 2012. Council discussed interview options and decided to vote for a candidate during the meeting instead of having an interview process. Ms. Christensen explained the voting process and distributed ballots. Council unanimously voted for Pam Marsh. Councilor Voisin/Slattery m/s the election selection of Pam Marsh to position 6 of the City Council. Voice Vote: all AYES. ASHLAND CITY COUNCIL MEETING November 20, 2012 Page 5 of 5 ORDINANCES, RESOLUTIONS AND CONTRACTS 1. Second reading, by title only, of an ordinance titled, "An ordinance amending AMC Chapter 3.08, General Personnel Policies, and Employee Responsibilities" Councilor SilbigerNoisin m/s to approve Ordinance #3078. Roll Call Vote: Councilor Silbiger, Voisin, Slattery, Morris, and Lemhouse, YES. Motion passed. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS Councilor Morris provided a brief update on the Homelessness Steering Committee (HSC). The homeless shelter added a second night on Wednesdays with training for volunteers November 27, 2012. The HSC split the Chair position between Sara Hopkins Powell and Rich Rhode. HSC tried to bring a Veterans Court to Jackson County unsuccessfully but if there were support from Ashland, they would try again, although a Veteran's Court might be more applicable to the County because of the number of people it could serve. ADJOURNMENT Meeting adjourned at 8:49 p.m: Barbara Christensen, City Recorder John Stromberg, Mayor CONSERVATION COMMISSION MINUTES 6:00pm-8:00pm -October 24, 2012 Community Development Building 51 Winbum Way, Ashland, OR 97520 To be approved at the November 28, 2012 Commission Meeting. CALL TO ORDER Chairperson Beam called the meeting to order at 6:00pm. Attendees: Thomas Beam. Roxane Beige]-Coryell, Risa Buck, Jim Hartman, Cat Gould, Marni Koopman, Jim McGinnis, David Runkel and Mark Weir. e r., City Council Liaison: Carol Voisin Staff Representative: Lee Tuneberg, Adam Hanks, and Mary McGlar, APPROVAL OF MINUTES Chairperson Beam asked for approval of the minutes for Septelob,026, 2012. a Commissioner Buck moved to approve file minutes as s'tnted of September 26, 2012Aeconded by Commissioner Weir.' 3 Voice Vote: All Ayes. The motion passed with a unanimous vote"; ANNOUNCEMENTS The next Conservation Commission meeting wouTbe ed Novemlierf28 2012. Commissioner Runkel will be absent for the November meeting. Upcoming sub-committee meet g for September: Sustainabihty sub-co mt[[ee will meetth"e I ' and 3 a Thursday of the month at the Siskiyou Room, Community Development Building. r r<`t? Water sub-committM,wil] meet from 6 7pm at>.the Ashland,L'ibrary, [he 2"d Monday of the month. kr Chairperson Beam announced lhere~vould be a brief presentation.to the City Council on November 6n regarding the Commission's S~"stainable Framework Plan. He invit the Commissioners to attend if possible. WELCOME/ INTRODUCTION Introduction off k,Holden, Director ofAFA',IT & Electric Utility v Mark introduced himself to the Commission and gave them a brief background of his work history and how it relates to his current director posttmns. He talked about some of his personal and professional highlights. The Commissioners asked him several questions mcluding concerns about Tier 2 power charges, conservation efforts, sustainable frameworks, and the genera [iori"of revenue. The members thanked Mr. Holden for taking the time to come and meet with the Commission. PUBLIC FORUM Chairperson Beam and Counselor Voisin acknowledged Commissioner Buck's immense work on the Plastic Round-Up Event, indicating the overall success. Commissioner Buck gave some thanks to the Master Recyclers, Chairperson Beam and city staff employee, Larry Giardina, for their contribution for the event. A total of 654 cars came to the event in Ashland only, making it the highest participation to date. Commissioner Weir would like the Plastic Round up Event to the Master Calendar two months prior to the event for the Commission to review. UNFINISHED BUSINESS 2012-13 Commission Master Calendar Review Commissioner McGinnis announced the Sustainable sub-committee meetings would be scheduled according to the results of the Council meeting on November 6th. 2012 Commission Retreat Planning The retreat will be scheduled for Saturday, December 1" at the Parks and Recreation office in Lithia Park beginning at 9am. The Commission hopes to retain a facilitator who would then optimize their time spent. Chairperson Beam went over a brief outline of the retreat. They tentatively review: • calendar review of prior year • charter and commission goals • short term goals • 3, 5, 10 yr look forward • projects • budget review • budget appropriations • break-out groups NEW BUSINESS Water Sub-committee Objectives/Task/Update ~ ~r' Commissioner Weir reported on the meeting on the 71h discussing ttoptes of water conservation that they felt the Commission could get involved with, for example, water cap, aanndarradee s , tems applied to businesses in Ashland. They talked about existing and new videos, placing them pit ih %veb site anted also the creation of new signage providing a community education component that supporWt c Commission goals. Projects suggested were: Adopt a Drain Program Tracking Water Cons ervatioaxEfforts (annual city report cardj`'~~ Rebate for people installin g Gre -water systems More signage around Environmenial Resoues Counselor Voisin needed to leave for City Public ".Forum OLD BUSINESS ~u City Operational Sustainability Plan Sub-Committee Status Update,° Commissioner McGinnis remarked about the ups-coming cit y council meeting yhere the framework sustainability plan would be presented at the next meeting. He thanked Adam for~all his, work in putting the outline/plan together. The members discussed h tthhe plan ele 160 i°ments coincideT'ittirt e,council goals., They anticipated the Council results and talked about what next''' Ieps would occur: Lee talked .about future projects and resources available to implement more work required to move for"ivad. Comm sioner Beigel Coryell suggested the possibility of utilizing SOU's Capstone Project to help with the Commissions project„ The Commissioners sincerely thanked Commissioner McGinnis, Adam Flanks and all the members for consistently pursuing [his project and ere,very pF~ ased with the fnaCproducl. QUARTERLY LIAISON REPORTS; SOU UPATES: r • Recycling center In operation ~fon almost d"'ye`ar, from April to September, they have sorted out more than 26,000 pounds of reciclmg, 500 pounds of items for reuse, and reduced their garbage contamination rate from 17%to13%inFie'last six months. During the SOU move out, they diverted from the landfill more than 5600 pounds of items. , • Green house Gas Inventory completed this year. • Purchased Power Safe Software to help reduce their electronic usage from computers. • The Green Fee will offset water use with restoration credits; help fund renewable projects on campus or within the community and support student projects. • Irrigation system will be updated expecting to save approx. 16 million gallons of water a year. • Department of Energy Video highlighting renewable energy releasing next week. • North Campus Village project still slated to be Leed Gold, opening in the fall of 2012. Chairperson Beam remarked how the students were doing an incredible amount of working leading staff in a direction that creates a campus they want to live on. COUNCIL LIAISON REPORTS Set aside. OTHER BUSINESS FROM COMMISSIONERS NOT ON AGENDA Adam went over the proposed changes to the Commissions about an attendance policy and membership requirements summarizing their interest in the option to define their own rules for attendance and excused and unexcused absentees. The members discussed the options from different angles including adding an option to attend a meeting by phone in case of illness or other circumstances. Lee explained about other Commissions and Committees and the need for some flexibility due to the individual needs of each one. Commissioner Gould moved to adopt option 3 from the memo to the Commission regarding potential Ashland municipal Code Changes. Commissioner Weir seconded the motion. Option 3- Proposes that each Commission develops and submits its own attendance rules that would include notification rules, excused/unexcused definitions, phone/intern( participation options, minimum attendance requirements. Voice Vote: All Ayes. The motion passed with a unanimous vote" Commissioner Weir stated in order to keep the web site updated: • Recommends was spelled incorrectly on the Conservation web sne - • Links to the other two videos are not on line yet • Remove or edit the composting class informal on,preferable edit ` - • Highlight Grey water in the City Source.' Commissioner Gould relayed her experience with her family parlakingpn marking drains. Commissioner Weir asked about the water conser atiomspecialist position no longer be filled and Lee explained the City has'a hiring freeze in effect until further notice. far. ADJOURNMENT t The meeting was adjourned at 8.0 0 ('4e_ Respectfully submitted by -i. Mary McClary Administrative Assistant far Electne ecommunication and the Consen ation,Department is uY• In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Community Development office at 541-088-5305 (TTY phone number is 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 TWO). CITY OF -AS H LAN D CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting A Resolution Declaring the Canvass of the Vote of the Election Held in and for the City of Ashland, Oregon on November 6, 2012, and Mayoral Proclamation FROM: Barbara Christensen, City Recorder, christeb@ashland.or.us SUMMARY City Council must approve a Resolution declaring the Canvass of the Vote of the election held in and for the City of Ashland, Oregon on November 6, 2012 and a Mayoral Proclamation formally declaring the results of the elections for Mayor, City Council positions 1, 3, and 5, Parks Commission positions 1 and 2, and ballot measures 15-113 and 15-116. BACKGROUND AND POLICY IMPLICATIONS: Article VII, Section 6, of the City Charter requires that the canvass of the votes for all city elections be made, and the results of the election "shall be entered in the record of the proceedings of the council." The Resolution sets forth the vote for each position and each measure, and the proclamation sets forth the name of each person elected to office and the passage or failure of each of the ballot measures, all as required by this chapter section. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: Adoption of the Resolution with the Mayor making the proclamation. SUGGESTED MOTION: Motion to approve a resolution titled, "A resolution declaring the canvass of the vote of the election held in and for the City of Ashland, Oregon on November 6, 2012" and a Mayoral Proclamation. ATTACHMENTS: Resolution - Canvass of the Vote Proclamation Page 1 of I ~r, RESOLUTION NO. 2012- A RESOLUTION DECLARING THE CANVAS OF THE VOTE OF THE ELECTION HELD IN AND FOR THE CITY OF ASHLAND, OREGON ON NOVEMBER 6, 2012 RECITALS: CITY OF ASHLAND - MAYOR John Stromberg 6,379 Alan DeBoer 3,672 Biome 857 Write-Ins 52 COUNCIL MEMBER - POSITION NO. 1 Carol Voisin 4,885 Jackie Agee 4,856 Write-Ins 41 COUNCIL MEMBER - POSITION NO. 3 Greg Lemhouse 66304 Keith Haxton 3,212 Write-Ins 24 COUNCIL MEMBER - POSITION NO. 5 Rich Rosenthal 4 028 g~ Regina Ayers Write-Ins 26 11 PARKS COMMISSIONER - POSITION NO. 1 Vanston Shaw 4,515 Vicki Tripoli 3,075 Write-Ins 103 PARKS COMMISSIONER - POSITION NO. 2 Jim Lewis 5,621 Write-Ins 133 BALLOT MEASURE 15-113 "RENEWAL OF LOCAL OPTION TAX LEVY FUNDING FOR ASHLAND LIBRARY" YES 8 999 NO 2,227 BALLOT MEASURE 15-116 "QUESTION ON CONSTITUTIONAL DEFINITION OF "PERSONS" AND CAMPAIGN SPENDING LIMITS" YES 8,294 NO 2,132 Page 1 of 2 THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. John Stromberg is declared to be the duly elected City of Ashland Mayor. SECTION 2. Carol Voisin is declared to be the duly elected council member for Position No. 1. SECTION 3. Greg Lemhouse is declared to be the duly elected council member for Position No. 3. SECTION 4. Rich Rosenthal is declared to be the duly elected council member for Position No. 5. SECTION 5. Vanston Shaw is declared to be the duly elected parks commissioner for Position No. 1. SECTION 6. Jim Lewis is declared to be the duly elected parks commissioner for Position No. 2. SECTION 7. Passage of Ballot Measure 15-113 "Renewal of Local Option Tax Levy Funding Ashland Library." SECTION 8. Passage of Ballot Measure 15-116 "Question on constitutional definition of "persons" and campaign spending limits." SECTION 9. This resolution was duly PASSED and ADOPTED this day of December, 2012, and takes effect upon signing by the Mayor. Barbara Christensen, City Recorder SIGNED and APPROVED this day of December, 2012: John Stromberg, Mayor Reviewed as to form: David Lohman, City Attorney Page 2 of 2 JACKSON COUNTY Fax:5417746140 Nov 26 2012 12:48Rm P001/006 NUMEERED KEY CANVASS GENERAL ELECTION NOVEMBER 6, 2012 RUN DATE:11/23/12 10:10 AM JACKSON COUNTY, OREGON REPORT•EL52 PAGE 0026 Mayor ASHLAND CITY VOTES PERCENT VOTES PERCENT Vote For 1 01 - John Stromberg 6,379 58.20 03 = Biome 857 7,82 02 - Alan DeBoer 3,672 33.50 04 - WRITE-IN 52 .47 01 02 03 04 0002 2 Ashland 1692 1023 159 13 OOC4 4 Ashland 1665 872 229 13 0007 7 Ashland 1483 698 248 11 0010 i0 SOU 62 32 35 2 0013 13 Ashland 1477 1047 186 13 I certify the votes re7AMEZ lly of votes cast at the election indicateL date JACKSON COUNTY Fax:5417746140 Nov 26 2012 12:49pm P002/006 NUMBERED KEY CANVASS GENERAL ELECTION NOVEMBER 6, 2012 RUN JATE:11/23/12 10:10 AM JACKSON COUNTY. OREGON REPORT-EL52 PAGE 0027 CGUNCILMEMBER, PCS L ASHLAND CITY VOTES PERCENT VOTES PERCENT Vote For 1 01 = Jackie Agee 4.856 49-64 02 - Carol Voisin 4,885 49.94 03 = WRITE-IN 41 .42 01 02 03 0002 2 Ashland 1331 1230 13 0004 4 Ashland 1157 1333 11 0007 7 Ashland 1017 1151 7 0010 10 SOU 54 61 3 0013 13 Ashland 1297 1110 7 I certify the votes recor don ct correctly summarize the tally of votes cast at the electfon Indic e . Kristine D. W Jackson County Clerk date JACKSON COUNTY Fax:5417746140 Nov 26 2012 12:49pm P003/006 NUMBERED KEY CANVASS GENERAL ELECTION NOVEMBER 6, 2012 RUN DATE:11/23/12 10:_0 AM JACKSON COUNTY, OREGON REPORT-EL52 PAGE 0028 COUNCILMEMBER, POS 3 ASHLAND CITY VOTES PERCENT VOTES PERCENT vote For 1 01 = Keith Maxtor. 3,212 33.67 02 - Greg Lemhouse 6.304 66.08 03 - WRITE-IN 24 25 O1 02 03 0G02 2 Ashland ---779 17338 0004 4 Ashland 890 1520 9 0007 7 Ashland 763 1349 4 0010 10 SOU 53 54 3 0013 13 Ashland 727 1648 O certify the votes recorded n the election indicated. thi b frac corre- ctly summariz the tally of votes cast at - isTrne alker a on County Clerk to JACKSON COUNTY Fax:5417746140 Nov 26 2012 12:dgpm P004/006 NUMBERED KEY CANVASS GENERAL ELECTION NOVEMBER 6, 2012 RUN DATE:11123/12 10:10 AM JACK50N COUNTY, OREGON REPORT-EL52 PAGE 0029 VOTES PERCENT VOTES PERCENT COUNCILMEMBER, POS 5 ASHLAND CITY Vote For 1 01 = Regina Ayars 3,687 38.78 03 = Rich Rosenthal 4,028 42.36 02 - Bruce Harrell 1,767 18.58 04 = WRITE-IN 26 .27 01 02 03 04 0002 2 Ashland 913 486 1082 6 DOG4 4 Ashland 1011 446 978 7 0007 7 Ashland 876 358 881 6 0010 10 SOU 43 26 37 3 0013 13 Ashland B44 451 1050 4 / 1 l I certify the votes recorded this betract correctly summarize the tally of votes cast at the election indicated. - ~111Z ht&j /1-"s -lam er on County Clerk date JACKSON COUNTY Fax:5417746140 Nov 26 2012 12:49pm P005/006 NU"9ERE0 KEY CANVASS GENERAL ELECTION NOVEMBER 6. 2012 RUN DATE:11/23112 10:10 AN JACKSON COUNTY. OREGON REPORT-EL52 PAGE 0030 VOTES PERCENT VOTES PERCENT PARKS AND RECREATION COMMISSIONER, P05 ASHLAND CITY Vote For 1 01 = Vanston Shaw 4.515 S8.87 02 - Vicki Tripoli 3.075 40.10 03 - WRITE-IN 79 1.03 61 02 03 0002 2 Ashland 1196 736 24 0004 4 Ashland 1138 824 19 0007 7 Ashland 1023 666 16 OKI) 10 SOU 55 46 5 0013 13 Ashland 1103 803 15 I certify the votes recorded o thi s ract orrectly summarize the tally of votes cast at the election indicated. C kson County Clerk date JACKSON COUNTY Fax:5417746140 Nov 26 2012 12:49pm P006/006 NUMBERED KEY CANVASS GENERAL ELECTION NOVEMBER 6, 2012 RUN DATE:11/23/12 10:10 AN JACKSON COUNTY, OREGON REPORT-EL52 PAGE 0631 VOTES PERCENT PARKS AND RECREATION COMMISSIONER. POS 2 ASHLAND CITY Vote For 1 01 = James Lewis 5.621 97.69 02 = WRITE-IN 133 2.31 01... 02 0002 2 Ashland 1435 23 0004 4 Ashland 1410 40 0007 7 Ashland 1225 36 0010 10 SOU 93 9 0013 13 Ashland :458 25 1 certify the votes recorde n tht traa::: ly of votes cast at the election indicated. ne . Wdate JACKSON COUNTY Fax:5417746140 Nov 26 2012 02:49pm P001/002 NUMBERED KEY CANVAs5 GENERAL ELECTION NOVEMBER 6, 2012 RUN DATE:11/23/12 10:10 AM JACKSON COUNTY. OREGON REPORT-EL52 PAGE 0070 VOTES PERCENT 15-113 Renewal of levy for library operations ASHLAND CITY Vote For 1 01 - Yes 8,999 80,16 02 = No 2,227 19,64 D1 02 0002 2 Ashland 2396 553 0004 4 Ashland 2315 535 0007 7 Ashland 2034 471 DD10 10 SOU 111 29 0013 13 Ashland 2143 639 i certify the votes recorded 0 this s correctly summarize the tally of votes cast at the election indicated. ChrJs " e D, alker, Jac son County Clerk date JACKSON COUNTY Fax:5417746140 Nov 26 2012 02:49pm P002/002 NUMBcRED KEY CANVASS GENERAL ELECTION NOVEMBER 6, 2012 RUN OATE:11/23/12 10:10 AM JACKSON COUNTY, OREGON REPORT-EL52 PAGE 0071 VOTES PERCENT 15 116 Advisory on Const. definition of "persons" ASHLAND CITY Vote For 1 01 - Yes 8,294 79-55 02 - No 2,132 20.45 01....02 0002 2 Ashland 2198 565 0004 4 Ashland 2131 498 0007 7 Ashland 1867 458 0019 10 sou 100 35 00133 13 Ashland 1998 576 I I certify the votes recorded thi bs ra f correrltlysummprize the tally of votes cast at the election indicated Tsfine D Wal r son County Clerk date PROCLAMATION I, John Stromberg, Mayor of the City of Ashland, Oregon, do proclaim that at the election held in the City of Ashland, Oregon, on the 6' day of November, 2012, there was submitted to the voters the question of the elections of persons to various elective offices in the City and Ballot Measures 15-113 and 15-116. It is hereby declared that the following persons were elected to the positions set forth next to their names and Ballot Measures approved: City of Ashland Mayor John Stromberg Council Member, Position #1 Carol Voisin Council Member, Position #3 Greg Lemhouse Council Member, Position #5 Rich Rosenthal Park Commissioner, Position #1 Vanston Shaw Park Commissioner, Position #2 Jim Lewis Ballot Measure 15-113 "Renewal of Local Tax Levy Funding for Ashland Library" Ballot Measure 15-116 "Question on constitutional definition of "persons" and campaign spending limits" Dated at Ashland, Oregon, this 4' day of December, 2012. John Stromberg, Mayor Barbara Christensen, City Recorder CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting Resolution instructing the U.S. Congress to approve a constitutional amendment granting Congress and the States authority to regulate campaign contributions and expenditures and to determine the nature and extent of privileges to entities other than natural persons FROM: Dave Kanner, City Administrator, dave.kanner@ashland.or.us SUMMARY At its business meeting on August 7, 2012, the City Council approved a resolution that submitted to the November 6, 2012 general election an advisory question regarding instructing the U.S. Congress to approve a constitutional amendment granting Congress and the states authority to regulate campaign contributions and expenditures and to determine the nature and extent of the privileges of entities other than natural persons. The unofficial vote tally for that advisory question was 8,293-Yes and 2,132-No. This resolution confirms the will of the voters and officially calls on the U.S. Congress to approve the Constitutional amendment. BACKGROUND AND POLICY IMPLICATIONS: In Citizens United v. Federal Election Commission, 558 U.S. 50 (2010), the U.S. Supreme Court held that legislatively-authorized entities, such as corporations, limited liability companies, and unions, have the right to make unlimited indirect political contributions because the Court determined legislatively-authorized entities have the same constitutional rights as natural persons and political contributions constitute expression highly protected from governmental restrictions by the First Amendment. Several proposed Constitutional amendments designed to invalidate the Citizens United decision have been introduced in Congress. If each house of Congress approves one of these proposed amendments by a two-thirds vote and 38 states then ratify it by legislative approvals or state conventions, it could become the 28`h Amendment to the Constitution. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: N/A SUGGESTED MOTION: I move that Council approve the resolution titled, "A resolution of the City of Ashland, Jackson County, Oregon, instructing the U.S. Congress to approve a constitutional amendment granting Page] U2 FA, CITY OF ASHLAND Congress and the States authority to regulate campaign contributions and expenditures and to determine the nature and extent of privileges to entities other than natural persons." ATTACHMENTS: Resolution i Page 2 of 2 Pr, RESOLUTION NO 2012 - RESOLUTION OF THE CITY OF ASHLAND, JACKSON COUNTY, OREGON, INSTRUCTING THE U.S. CONGRESS TO APPROVE A CONSTITUTIONAL AMENDMENT GRANTING CONGRESS AND THE STATES AUTHORITY TO REGULATE CAMPAIGN CONTRIBUTIONS AND EXPENDITURES AND TO DETERMINE THE NATURE AND EXTENT OF PRIVILEGES TO ENTITIES OTHER THAN NATURAL PERSONS. . RECITALS: A. The City Council of the City of Ashland, Jackson County, Oregon (the "City") has the authority to submit to electors at duly scheduled elections advisory questions on matters of interest to the City regardless of whether they are beyond the scope of the City's power to enact legislation. B. Ashland residents are affected by federal policies which can be influenced by campaign contributions and independent political spending. C. Federal and State regulation of campaign contributions and spending is governed by decisions of the U.S. Supreme Court. D. The U.S. Supreme Court held in Citizens United v. Federal Election Commission, 558 US 50 (2010) that legislatively-authorized entities, such as corporations, limited liability companies, and unions, have the right to make unlimited political contributions because the Court determined that legislatively-authorized entities have the same constitutional rights as natural persons and that political contributions constitute expression highly protected from governmental restrictions by the First Amendment. E. The U.S. Congress cannot modify a U.S. Supreme Court decision on constitutional rights through legislation, but can initiate the process of amending the U.S. Constitution. F. The City Council wished to afford the electors of Ashland the opportunity to decide whether to instruct the U.S. Congress to seek to overturn the U.S. Supreme Court decision in Citizens United v. Federal Election Commission through a constitutional amendment making constitutional rights available only to natural persons and granting to Congress and the States authority to regulate campaign contributions and expenditures. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. At the November 6, 2012 election, the advisory question, "Shall Ashland voters instruct Congress to amend U.S. Constitution to grant only natural persons Constitutional rights and limit campaign spending?" was submitted to the electors of Ashland for their "yes" or "no" vote. Resolution No. 2012- Page 1 of 2 SECTION 2. The advisory question passed with a vote of 79.64% "yes' 'and 20.36% "no". SECTION 3. The City of Ashland therefore calls on the U.S. Congress, to approve a Constitutional amendment granting Congress and the States authority to regulate campaign contributions and expenditures and to determine the nature and extent of privileges to entities other than natural persons. This resolution is effective upon signing by the Mayor. PASSED and ADOPTED this day of 2012. Barbara Christensen, City Recorder SIGNED and APPROVED this day of 12012. John Stromberg, Mayor Reviewed as to form: David Lohman, City Attorney Resolution No. 2012- Page 2 of 2 CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting Approval of an amendment to the cable television franchise agreement with Charter Communications, Inc. FROM: Dave Kanner, city administrator, dave.kanner@ashland.or.us SUMMARY Charter Communications provides cable television services in the City of Ashland pursuant to a franchise agreement with the City. Recent extensions of the term that franchise agreement have expired and the City and Charter now propose to enter into a month-to-month extension while a new franchise agreement is worked out. BACKGROUND AND POLICY IMPLICATIONS: Under the Federal Telecommunications Act of 1996 and its predecessor laws, cable television services may not be offered by private providers without a franchise agreement from the local governing body. The City's agreement with Charter expired in June 2010 and was extended to December 2011. Although the agreement expired, it remains in effect until a new agreement is approved. This consent and approval explicitly states that the existing franchise agreement will be extended on a month to month basis. The City has held off on negotiating a new agreement with Charter in part because it has been waiting for Jackson County to conclude its negotiations on an agreement with Charter. By doing so, the City can, in its new agreement, mirror the County's terms with regard to public, educational and government (PEG) access channels and programming. FISCAL IMPLICATIONS: The City's franchise agreement with Charter generates about $135,000 in franchise fees and $40,000 in PEG fees annually. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of the proposed month-to-month extension. SUGGESTED MOTION: I move consent and approval of the City of Ashland to amend the Cable Television Franchise with Charter Communications, as submitted. ATTACHMENTS: Consent and Approval of City of Ashland, Oregon, to Amend Cable Television Franchise Page I of I OW r, CONSENT AND APPROVAL OF CITY OF ASHLAND, OREGON TO AMEND CABLE TELEVISION FRANCHISE WHEREAS, Falcon Cable Systems II, L.P., locally (mown as Charter Communications ("Charter") currently holds a cable franchise with the City of Ashland, Oregon ("City'), dated February 5, 2004 ('Franchise'); and WHEREAS, the City initially extended the term of the Franchise until June 30, 2009; June 30, 2010; and thereafter until December 31, 2011; and WHEREAS, the parties continue to reserve all rights under the formal procedures of Section 626 of the Cable Act and do not waive any rights related thereto; and WHEREAS, it is in the public interest to further extend the current Franchise for an additional period of time so that cable service to the public will not be interrupted; NOW, THEREFORE, the Franchise of Charter shall be extended on a month-to-month basis until either party gives the other 90 days written notice of its intent to negotiate a new Franchise. All other terms and conditions of the existing Franchise shall remain the same. The parties continue to reserve all I rights. under the formal procedures of Section 626 of Title VI of the Communications Act of 1934, as amended, and do not waive any rights related thereto. Charter shall not be required to send another request for renewal of its Franchise under 626 as a result of this Extension. PASSED AND APPROVED this _ day of .2012 City of Ashland, Oregon j APAOVED FORM J w By: Sig aturer /t 4 / 12 Print Name: Date J Title: i ACCEPTED this _ day of 12012 i Falcon Cable Systems II, L.P., Me Charter Communications By: Charter Communications VII, LLC Its General Manager By: Charter Communications Inc., its Manager By: Print Name: Title: President, Operations Charter Communications CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting Letter of Intent for Washington Street Extension to Tolman Creek Road FROM: Michael R. Faught, Public Works Director, faughtm@ashland.or.us SUMMARY: This is a letter of intent with IPCO Development that would allow a new street connection between Washington Street and Tolman Creek Road to be added to the Transportation System Plan (TSP) .without opposition. This proposed new street connection would reduce or eliminate the need to construct a median on OR 66 (Ashland Street) from Exit 14 to Tolman Creek Road which would restrict left hand turn movement out of Washington Street. BACKGROUND AND POLICY IMPLICATIONS: At the August 20, 2012 City Council Study Session, Council heard a presentation about the proposed letter of intent with IPCO Development. This letter was reviewed and supported by the joint Planning and Transportation Commissions. Following that meeting, staff worked with IPCO Development to assemble terms of the proposed letter of intent. Please note there have been some changes to the referenced site plan map as a result of the final negotiated terms of the letter of intent. For clarity, key elements of the proposed letter of intent include the following: • City purchases 55 feet of right-of-way and constructs a new street with a bridge through IPCO Development's property. The proposed street does not meet street standards (sidewalk on one side and curbside sidewalks) as it will be designed to meet the existing property constraints. • The City relocates existing utilities within the proposed new street. • The City assists IPCO Development to adjust existing conservation easement to match FEMA flood map. • The City helps IPCO Development process a master site plan through the planning process. AUQt/SI 20, 2012 Council Study Session Information The TSP update process has identified a number of important future street extensions that ensure connectivity and improve the transportation system. One of those streets, a connection between Washington Street and Tolman Creek Road, has been identified as a high priority project as relief to the Washington Street and OR 66 intersection deficiencies. This intersection does not meet Oregon Department df Transportation (ODOT) intersection spacing standards, and as such, the Interchange Area Management Plan recommends restricting left hand turn movements at this intersection. The problem of limited space between intersections is that traffic attempting to turn left off of Washington Street onto OR 66 will find it difficult to find gaps, which could cause traffic accidents to increase at that intersection as vacant land develops within the Washington Street area. Page 1 of 2 ~r, CITY OF ASHLAND The Washington Street to Tolman Creek Road connection was added to the TSP update process (project #R25) because this connection will serve as Washington Street's left turn onto Ashland Street if ODOT decides to extend the median. It can also help prevent the median from being extended by reducing the likelihood that safety warrants triggering restricted left hand turn movements from Washington Street will occur. The joint Transportation and Planning Commissions were tasked with updating the TSP and heard public testimony from the affected property owner (IPCO Development) in opposition to adding the Washington Street to Tolman Creek Road connection early in the process. Staff then began working with the property owners and believes that, with Council approval, a workable agreement has been reached to proceed with adding the project to the TSP document. After hearing the terms of the proposed letter of intent, the joint Planning and Transportation Commissions recommended that Council approve staff's recommendation to sign a letter of intent with IPCO Development. FISCAL IMPLICATIONS: Road construction costs are estimated at $1,015,000 and no property acquisition cost estimates have been developed to date. If the project is added to the TSP, then some system development funds will be eligible. However, staff will try to obtain economic development funds from the State of Oregon for the remainder of the project costs as this project will also be needed as the Washington Street area commercial and industrial area develops. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff is recommending that City Council approve the Washington Street extension to Tolman Creek . Road draft letter of intent with IPCO Development. SUGGESTED MOTION: Move to approve the Washington Street extension to Tolman Creek Road letter of intent between IPCO Development and the City of Ashland. ATTACHMENTS: 1. Draft Letter of Intent 2. Draft Project #1125 Washington Street Extension to Tolman Creek Road TSP Project Sheet 3. IPCO Master Plan Map i Page 2 of 2 ~r, LETTER OF INTENT FOR SALE OF REAL PROPERTY November 2012 IPCO Development 640 Tolman Creek Road Ashland, OR 97520 Re: Purchase of Property for Right of Way between Washington Street & Tolman Creek Road Dear By this letter, City of Ashland ('Buyer"), presents the manner in which it and IPCO Development ("Seller") agree Buyer may acquire certain real property from Seller as described herein. The parties recognize that the transaction will require further documentation and approvals, including the preparation and approval of a formal agreement setting forth the terms and conditions of the proposed purchase (the "Purchase Agreement"); nevertheless, they execute this letter to evidence their intention to proceed in mutual good faith to complete work required to negotiate terms of a Purchase Agreement that are consistent with this letter. The proposed terms and conditions include, but are not limited to, the following: 1. Property. Buyer will purchase from Seller all interests and rights, owned or used by Seller in connection with an approximate 55 feet wide strip of private property between Washington Street & Tolman Creek Road as further described in Exhibit A, (the "Property"). The Seller acknowledges that the Buyer intends to establish this property as a dedicated right-of-way ("ROW") through the current IPCO Development property. This new ROW would parallel and offset approximately 10 feet to the north of the centerline of the existing Washington Street ROW. 2. Consideration. The consideration (the "Purchase Price") will be established pursuant to appraisal by an appraiser selected and paid by the Buyer and subject to reasonable negotiations with Seller. Buyer will not assume any other liabilities or obligations of Seller over other property adjacent to or previously part of parcel or lot through which the Property, as a right-of- way, runs, and Seller will indemnify and hold harmless Buyer against all such other liabilities and obligations. 3. Purchase Agreement. The transaction will be subject to the negotiation and execution of a definitive Purchase Agreement with terms satisfactory to Seller and Buyer. The Purchase Agreement will contain representations, warranties and covenants, conditions that are reflected in the IPCO Development conceptual site plan scheme #14 (11-13-13) Exhibit A (attached) and will include without limitation the following: (a) The Buyer proposes, subject to planning approval, to build, own, and maintain this approximately 700 feet long, 28 feet wide paved road with curb, "park row", and 8 feet wide sidewalks on the north side of street. Buyer agrees to allow seller to credit park row landscape for sellers required landscape associated to any future development on said property. In addition, buyer will install irrigation system and pay water bill in public park row. Page 1 of 4 (b) The Buyer will construct and maintain a stream crossing structure over Hamilton Creek, to support the new roadway and sidewalk. The crossing structure will be designed to meet or exceed the most current storm water quality mitigation requirements and standards. Riparian restoration of the creek bed and banks will be included to the maximum extent practicable. (c) The Buyer will relocate existing utilities as required, without diminishing utility services quality to the development, including water pressure, electric power, and sewer service line to property line at a location designated by the property owner with proper access to all locations. This shall not be charged back to seller. (d) The Buyer will assist the development to adjust the location of the existing conservation easement across private property to the match the new FEMA flood map and Ashland Water Resources Protection Ordinance boundaries. If allowed by FEMA, the Buyer will allow building E as shown with parking at the southeast corner with utility,and road access over that area. (e) The Buyer will allow the development to use any land recovered and to use the area over the existing pipe culvert, as deemed appropriate by FEMA, and allow the development to clean out and maintain blackberry and weed infested areas and use these areas for landscape credits. (f) Assist the development in preparing a master plan that will include parking and driveways in specified locations to be formally submitted for planning review through the City's planning process. The associated City planning costs will be paid by the Seller. The Buyer anticipates that the process will include the following steps: a. Submit pre-application for Preliminary Site Layout. b. Draft conservation easement boundary adjustment & delineate "water protection zone." C. Draft right-of-way dedication survey documentation. d. Obtain property owner concurrence RE: ROW dedication & easements. e. Obtain Planning approval for variances. f. Obtain City Council approval RE: ROW dedication & easements. g. Engineering Design & Permitting. h. 'Planning Approval for Environmental Constraints. i. Site Plan approvals. (g) The Buyer agrees to work with the Seller during engineering phase of project to ensure final grades will accommodate ingress and egress on the Seller's driveways in order to minimize impacts of steep grades as much as possible. (h) The Seller can continue to drain storm water into Hamilton Creek as long as current state, federal and local storm drain regulations are met. 4. Access. To permit Buyer to conduct its due diligence investigation, as long as this letter remains in effect, Seller will permit Buyer and its agents to have reasonable access to the Property for purposes of surveying and planning for the use and design of the Property. Page 2 of 4 5. Conditions to Closing. The closing of the transaction will be subject to certain conditions, including without limitation the following: (a) Funds for the purchase of said land are subject to the buyer successfully securing a grant to purchase the Property. (b) All required approvals, consents, and authorizations of state and federal regulatory authorities shall have been received. (c) All required consents of third parties shall have been received. (d) Buyer shall have completed a due diligence review of the property and its title of Seller satisfactory to Buyer in its sole discretion. The Buyer, as the City, may be required to make make land use and/or building code decisions affecting development of the subject Right-of-Way and related property according to local and state laws. The Parties therefore acknowledge that the Buyer cannot and does not promise or guarantee any particular planning or building code decision or result as part of or as a condition of achieving the purposes of this letter of intent. 6. Negotiations with Others. Until the date on which the parties anticipate that a Purchase Agreement will be executed, Seller will not offer its stock or assets to, entertain offers for them from, negotiate for their sale to, or make information about them available (for purposes of sale) to, any third party. 7. Conduct of Business; Interim Operations. As long as this letter remains in effect, Seller will use its best efforts to conduct its business in a reasonable and prudent manner in accordance with past practices, to preserve its existing business organizations and relationships with its employees, customers, suppliers, and others with whom it has a business relationship, to preserve and protect its properties, avoid any and all liens, and to conduct its business in compliance with all applicable laws and regulations. 8. Closing Date. The closing date under the Purchase Agreement will be ; or such other date as may be agreed on by the parties. 9. Effect of This Letter. This letter sets forth the intent of the parties only, is not binding on the parties, and may not be relied on as the basis for a contract by estoppel or be the basis for a claim based on detrimental reliance or any other theory; provided that paragraphs 6 and 7, and this paragraph 9 will be enforceable in accordance with their terms. With the exceptions of paragraphs 4, 6, 7, and this paragraph 9, the parties understand that no party shall be bound until the Purchase Agreement has been negotiated, executed, delivered, and approved by the . partners or shareholders of Buyer and Seller, as the case may be. 10. Termination of Negotiations. This letter may be terminated at any time by either party giving written notice to the other. After notice is given, the parties shall be bound only by paragraphs 6, 7, and 9. Page 3 of 4 If this letter sets forth your intent to proceed in good faith substantially in the manner outlined in this letter, please sign a copy of this letter and return it to Buyer. This letter of intent shall be of no further force and effect if it is not signed by Seller and returned to Buyer by the close of business on 12012. Very truly yours, By: Buyer Accepted and agreed to: By: Seller Page 4 of 4 City of Ashland TSP Update Project +r: 10633 September 2011 Page 24 Project R25 Washington Street Extension to Tolman Creek Road Description: Extend Washington Street to Tolman Creek Road. Coordinate project with IAMP Exit 14 Access Management on Ashland Street (OR 66) and surrounding deveopment. Right-of-way costs are not Included in the cost estimate. Category: Functional Classification: Time Frame: Engineering and Construction Cost: Roadway Neighborhood Collector Development & Access Management Driven $1,015,000 Project Goals Met: Create a Green Improve Safety Facilitate Economic Growth and Maintain Balance Mobility Template Small Town Character and Access ❑ Cl 6d Q Project Location: ' j 4 jot, A ~ i X r =~t y ,.1... Vim` '~rz n1 +.7 ' ! f R25 I r .!r''"rf Project Image: ~Side ParkFtOW Parking Travel Travel Parking ParkROW Side Walk Lane Lane Walk 7'-8' 7' 91-10' 9'-10' 7' T-8' >'-6' / 6" Curb I-- 6" Curb Neighborhood Collector Commercial (Parallel Parking on Both Sides) ROW 57'- 63' Kittelson & Associates, Inc. Portland, Oregon i i 2 3 4 S S 1 I I ArJ,ietttwal ' Ueslpn Wort[,IK - - / I EXISTING EXISTING _WASHI_NGTON_ STREET - I FOREST SERVICE I ASHLAND RACQUET CLUB ~ FUTURE LEASE^ EXISTING :BUILDING , SUPER EIGHT MOTEL . - + 9,290 SF ro.. 27,807 SF C~) G I !FUTURE LEASED BUILDING % ~ 1 236389 SF I / 1012 Wdv r4n I _ I ;'fi`n - W I - -6 / `wO` / f r♦ EXISTING LELD J - DT URE kUTURE AO a LESSCHWAB BUILDING 4,/ ~;p / "ADDITION to 29,x29 SF 4' i _ o A i d j• no' IPCO Q~ ! s i J L13L FUTURE LEASED ' BUILDING 32,992 SF I I 1 I t ...y fill TOLMAN CREEK ROAD A - OVERALL BUUMER SM PLAN A-101 slim t or 00 1 2 3 4 s ! tlna tww n.. i CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting Approval of a Public Art Element for the Downtown Plaza FROM: Ann Seltzer, Management Analyst, seltzers@ashland.or.us SUMMARY Artist Sue Springer prepared a design concept with two color palettes for the public art element on the Plaza. The Selection Panel for public art on the Plaza has approved the design, selected a preferred color palette and has made a recommendation to the Public Art Commission. The selected public art element is now presented to the City Council for final approval. BACKGROUND AND POLICY IMPLICATIONS: In October; Council approved awarding local artist Sue Springer a commission to create a design for the public art element of the Plaza. The Public Art Commission requested the artist prepare a design for the face of the seat walls. Because the Plaza has four vertical structures, three of which are on the historic register, the Commission felt that by placing the art element on the vertical face of the 18-inch tall seat walls, it would not compete with the existing vertical structures or block sightlines in the Plaza. The commission felt strongly that the art element reflect the art of our time and therefore be contemporary in design. Ms. Springer has created a colorful ceramic frieze that is curvilinear in form and reflects the movement of people, time and water (see attached artist statement and design and color concept). She presented her design and color palettes to the Selection Panel, independent from the Public Art Commission, in mid-November. Public Art Commissioner Carol Davis described the Selection Panel process as thoughtful and the panelists were attentive and deliberative in their discussion. They had two color palettes to choose from: one described as earth tones and the other a green/gold palette. All five panelists were drawn to the green/gold palette but requested that the artist add more earth tones. One panelist commented "I feel confident Sue can capture what we've discussed, I totally trust her to get it right." The panelist agreed the colored renderings did not do justice to the palette since the paints are not exactly the same color as the original ceramic glazes created by Springer. They recommended not including a color rendering but instead to present the black and white version of the design and include the actual ceramics in the presentation to the City Council. The artist has met with the CoveyPardee Landscape Architects to discuss the design and installation of the ceramic frieze. CoveyPardee has prepared construction documents with a smooth concrete finish Page I of 2 CITY OF ASHLAND on the vertical seat walls. Ms. Springer will fabricate the ceramics at her studio and install the artwork when construction is completed on the Plaza. FISCAL IMPLICATIONS: AMC 2.29 requires one half of one percent of the total cost of a city capital project be allocated for public art. For the Plaza project that amount is approximately $850. The estimated cost of the public art element is $750 for the artist design plus $12, 410 for the fabrication and installation (170 square feet @ $73 per square foot). Staff recommends using funds from the TOT monies set aside for public art. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval: SUGGESTED MOTION: I move approval of the Public Art Commission recommendation of the public art element for the Plaza. ATTACHMENTS: • Artist statement and design concept • Notes from Selection Panel Process Letter from Carol Davis to the Historic Commission Page 2 of 2 Susan E. Springer Mahe Studios and Gallery 215 Fourth St. Ashland, OR 97520 www.illahegallery.com www.suespringerart.com Artist Statement City of Ashland; Downtown Plaza Project I envision a colorful ceramic frieze along the base of the new seat walls in the revitalized Downtown Plaza. The artwork would be made of interlocking curvilinear forms with bright mosaic elements breaking up the pattern. The historic Plaza has always functioned as a gathering place, encouraging movement of passers-by, inviting them to stop, meet friends and connect with others. With this installation, the artwork speaks to the flow of the creek, movement of people and passing time. By incorporating themes of movement, flow and color, we are invited in and the view is enlivened both from a distance and as moving through Ashland's "Living Room". The location of the seat walls creates a unique challenge, with the long horizontal spaces which measure approximately 18 inches in height; the ceramic frieze would provide a glimpse of color as entering the space from any direction. Traditionally artwork is viewed at eye-level and the viewer is drawn to the color and composition while standing. In this case, the artwork would be viewed across the Plaza and must be very durable and able to withstand weather and heavy use, while providing color and texture. The new Plaza redesign includes abundant seating possibilities, inviting visitors and locals to take a moment, take a seat, to relax and watch the life of the community pass by. I imagine the Plaza redesign would create an atmosphere that is inviting and welcomes families and friends to linger, in a rich public space enlivened by the colorful ceramic frieze. i f S -:yam 41 MAP" ub. l -a . T r - C` I7~-l s ar ` ? u i -7;...- - - I .i Y 1 We .3.:t ib.. - i b I. I -S v i F' .f: t Y640" ILL f., y' _ 'y L+ ASHLAND rti-= PLAZA SEATING WALLS Susan E. Springer Illahe Studios and Gallery COLOR SAMPLES 215 Fourth St. Ashland,OR 97520 541488 5072 www.illahegallery.com Cl Proposal City of Ashland Plaza seating walls Sue Springer Illahe Studios and Gallery 541 488 5072 215 Fourth St. Ashland, OR 97520 www.illahegailery.com www.suespringerart.com Material: High fired stoneware clay, hand formed and glazed Firing temperature: 2185 F; Cone 6 Surface: colorful high temperature glazes in matte to glossy surfaces Installation: The mosaic pieces would be adhered with Thin Set cement to the prepared cement surface. The ceramic mosaic elements used to create these seat walls would be designed and fabricated at Illahe Studios, and would be made from high fired stoneware clay. This clay has been developed to withstand wide variations in temperature and humidity in exterior locations. It has been specifically tested to withstand the freeze/thaw cycles particular to Ashland. Once installed, the ceramic work is extremely durable and permanent, resistant to graffiti and vandalism, with very low maintenance requirements; the ceramic portions would require no more than an occasional washing. All work is done according to code, and ceramic tile installation follows Tile Council of North America (TCNA) standards. Ashland Plaza Project Design/artist fee includes research, drawings submitted to client for approval $750 Tile: Includes all elements, including custom made tile pieces and mosaic elements, durable ceramic elements, glaze and firing Pricing per square foot $35.00 per sq ft Layout and mosaic setting, in studio on mesh $20.00 per sq ft Installation: includes installation materials, thin set, grout and sealer, all labor and installation tools $18.00 per sq ft Total per square foot $73.00 persq ft Totals 170 square feet at $73.00 per sq ft $12,410.00 plus $750 Design artist fee 1 "jj y ry O V~ - _ j O ~ r 9/` d n SM19/ f O V~ NORTH o ~r Ashland Downtown Plaza ELEVATION KEY MAP 1"=20' November 14, 2012 8 8 8 8 8$ 8 8 8 9 8 8 $ 8 8 8$ 8 8 8 8 8$$ Y (Jr A W I mOM Ym Cm 4 4D ~ 4D aD r m m m m D D D D I H ~ ti ~ Z Z Z Z ( f 8 8 8 8' 6 8 r ~m m Sj ~ 6 B 8 $ $ m N m 8 8 a° m 0 y 8 8 8 8 6 ~m D Z 9 Z Sy i r m ~ m 4 y Z J a 8 8 8 's 8 -to ~3 t 8 8 8 8 8 8 8 8 8 8 8 8 3 4 GG(D 0 a v Si <Aj!(~q 8< OD <1 O o t O z x Fill! ~i \ & 7 r s The Plaza in Downtown Ashland N e m Landscape Construction Documents North M in Street ~N g k 4a Ashland, Oregon 97520 ~yir~ , o~x Notes from Selection Panel Public Art Element/Plaza November 14, 2012 Judy Howard, Jamie Hutchinson, Ken Silverman, LouAnn David, Brandon Goldman Artist Sue Springer presented her concept and vision for the art and two different color palettes. David: likes the green/gold palette over the earth tone palette. Silverman: asked about the grout color and artist Springer replied she selects a very neutral color so that the artwork and the color "pops" Hutchinson: the green/gold palette grabs me, it is a relief from the neutral safe and conservative earth tone colors Goldman: green/gold palette emphasizes the artwork, the earth tone colors deemphasize the art and blends into the surrounding hardscape "the point of art is for it to show" Hutchinson: green/gold palette creates "an oasis" a place to congregate socially, a place for respite Howard: thinks the earth tone colors would work but both are doable. She also commented the green/gold palette also reflects earth colors General comments on the color palette not becoming dated because the glazes are muted versus bright Howard: the blue of the color renderings appear much brighter than the actual tiles glazes - Springer explained that she does not have paints that actually match the glazes. Howard: supports the green/gold palette of the tile glazes - they are more muted than the paints colors in the renderings Hutchinson: earth tone colors are expected; green/gold is unexpected and reflects southern Oregon The panel asked Ms. Springer her preference. Springer responded she prefers the green/gold palette. Those were the colors she began with to reflect the creek, the sky, the colors of landscaping and the hills across.the valley. Motion/Second: Goldman/David Approve green and gold palette with additional earth tone colors. Motion passes 5-0. Comment from Silverman: "I totally trust Sue to get it right. I feel confident she will capture what we've discussed." CITY OF ASHLAND .November 1, 2012 City of Ashland Historic Commission Dear Colleagues: I am writing at the request of Councilor Lemhouse to let you know the Public Art Commission is not moving forward with Historic Commissioner Victoria Law's recommendation to use historic photos as a component of public art on the Plaza. As you know, there are currently three historic vertical elements on the Plaza; the Lithia Fountain, the Iron Mike statue/fountain and the flag pole. We feel strongly that rather than looking backward in time and use historic photos as a component of public art, the Plaza needs to balance the existing historic elements with contemporary elements that reflect the current era. Some future day, when another entity is making decisions about the Plaza, today's contemporary art will be historic and they may or may not choose to preserve it. It will however reflect 2012 rather than the first half of the 20th century. We are working with local mosaic artist Sue Springer of Illahe Studios. Sue is an expert in tile work and mosaic and has created other noteworthy public art for Ashland and other cities. The commission feels she has the artistic and practical skills to install appealing permanent the work on the exterior vertical surfaces of the proposed seat walls. The face of the seat walls provides an opportunity for color and design and will be visible from all angles. Further, because the faces of the seat walls are low to the ground, we feel the art will not obstruct or dominate Plaza sightines. We enjoyed our discussions with Victoria and appreciate her presence along with city staff Amy Gunter. Thank you for the work you do on behalf of our community. Sincerely, Carol Davis, Chair Public Art Commission cc: Amy Gunter, staff liaison Historic Commission Greg Lemhouse, council liaison Historic Commission 1 CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting Resolution Amending City Grant Application Policy & Process FROM: Lee Tuneberg, Administrative Services/Finance Director, tuneberl@ashland.or.us SUMMARY As part of Council's approval of the revised Economic Development, Tourism, Cultural and Sustainability Grant Policy in February of 2012 and its use in the subsequent 2012-13 Budget process, Council requested an opportunity to review and potentially revise the policy and application process prior to the 2013-14 budget process. Based on a presentation and discussion at the November 19, 2012 Council Study Session, Staff has amended the City Grant Policy document and associated application materials. Amendments addressed a variety of administrative issues raised during the grant allocation process. Core policy elements such as the eligible activities, evaluation criteria and minimum grant award remain unchanged BACKGROUND AND POLICY IMPLICATIONS: At the November 19, 2012 Council Study Session, Staff provided Council with a set of policy and process assumptions, recommendations and outstanding policy issues for their consideration. Feedback from that presentation and discussion led to the following policy and process assumptions that drove amendments to the Policy and Process document, the application materials and the Transient Occupancy Tax (TOT) funding allocation resolution to be presented to the Council for approval each February: • The grant process will continue to be an annual process with the grants sub-committee of the Citizen's Budget Committee continuing to function as both the review and allocation recommendation body • The eligible activities and evaluation criteria for each category established in the 2012 Policy remain in use. • Grant applications will be reviewed and awarded based on the overall merit of the application, its compliance with the eligible activities and relative strength to the evaluation criteria with no particular distinction based on the application requesting "seed funding" vs. ongoing program funding or the number of years of City grant funding. • The Chamber of Commerce and Oregon Shakespeare Festival will continue to be directly allocated funds through the annual Transient Occupancy Tax funding allocation resolution • The minimum grant award will continue to be $5,000 • The Committee scoring sheet will continue to be an optional tool for sub-committee members Page 1 of 2 ~r, CITY OF ASHLAND • Of the four grant categories (Economic Development, Cultural Development, Tourism and Sustainability), Tourism will be the only category with a defined minimum allocation (per Oregon Revised Statutes), the remaining categories will have no minimum or maximum funding threshold. Council also received feedback from grant applicants, Budget Committee members and City staff and suggested the following changes be incorporated into the policy and application process: • Further refine the application document to include only essential questions that most directly relate to the eligible activities and evaluation criteria • Simplify the optional form templates included in the application packet, specifically the Client demographic profile and Grants program budget. • Amends the eligible activities, evaluation criteria and administrative elements of the Grant policy for terminology and process consistency throughout the document • Amend the optional sub-committee member scoring sheet to simplify the scoring by major . category rather than at the sub-component level. • Recommend the Grants sub-committee consider including short oral presentations or "Q & A" opportunities for each applicant at the Grants sub-committee meetings as time permits. FISCAL IMPLICATIONS: Policy changes proposed for adoption by resolution would have little to no impact in the staff time devoted to the Grants program resulting in negligible fiscal impact. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of the attached resolution amending the Economic Development, Cultural, Tourism and Sustainability Grants Policy that incorporates a variety of small edits to the Policy document, including adding the tern "support" in several areas to slightly broaden the scope of the eligible activities and associated evaluation criteria. Staff also recommends removal of the optional application scoring sheet from the policy document so that changes to the document can be made by staff at the direction of the sub-committee without the requirement to amend the Policy resolution with Council approval. The other recommendations and feedback from Council will be incorporated into the TOT allocation resolution scheduled for review and approval in February of 2013, the Grant application packet and in the suggested Grants process guide presented by Staff to the Grants sub-committee members prior to the application presentation and review meeting. SUGGESTED MOTION: I move to approve the resolution titled "A resolution amending the goals, criteria and requirements for the Economic, Cultural, Tourism and Sustainability Grant Program". ATTACHMENTS: 1. Resolution adopting revised Grants Policy and repealing Resolution 2012-05 2. Economic, Cultural, Tourism and Sustainability Grants Policy (w/proposed edits) Page 2 of 2 ~r, RESOLUTION NO. A RESOLUTION AMENDING THE GOALS, CRITERIA, AND REQUIREMENTS FOR THE ECONOMIC, CULTURAL, TOURISM AND SUSTAINABILITY GRANT PROGRAM THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. That the City of Ashland collects a Transient Occupancy Tax. Revenues from the Transient Occupancy Tax are used to fund General Governmental expenses, economic development, tourism promotion and the City's Economic, Cultural, Tourism and Sustainability Grant program. SECTION 2. That the City of Ashland purchases services from non-profits that it might otherwise provide directly through its Economic, Cultural, Tourism and Sustainability Grant. The grant program has four basic goals: • Economic Development • Cultural Development • Tourism Promotion • Sustainability SECTION 3. That the City Council wishes to establish and maintain clear goals, categories, criteria, and program requirements for the Economic, Tourism, Cultural, and Sustainability Grant program. Therefore the "Policy for Economic, Cultural, Tourism and Sustainability Grants" attached as Exhibit A is adopted and incorporated by this reference. SECTION 4. That the City Council will allocate funds to the Economic, Cultural, Tourism and Sustainability Grant program each year, by resolution, prior to soliciting applications from nonprofits. SECTION 5. Resolution 2012-05 is repealed. SECTION 6. This resolution was duly PASSED and ADOPTED this day of 2012 and takes effect upon signing by the Mayor. Barbara Christensen, City Recorder SIGNED and APPROVED this day of 12012. John Stromberg, Mayor Reviewed as to form: David Lohman, City Attorney Page 1 of 1 Exhibit A Economic, Cultural, Tourism and Sustainability Grants Policy Program Goals, Categories, Criteria, and Requirements The City of Ashland collects a Transient Occupancy Tax, from people who stay in overnight lodging within the City limits. Over half (58%) of those funds are reserved for the City's General Fund and are used to support Police, Fire, Community Development, and Municipal Court. Slightly more than a quarter (26.67%) of those funds are used to support the tourism industry. The tourist funds are either allocated directly to groups that market Ashland to tourists or are spent on capital facilities that enhance the tourism experience within the community. The remaining funds are dedicated to the City's annual grant program. The amounts that go to each of these programs are allocated prior to the beginning of each fiscal year by the Ashland City Council, generally in February. The City of Ashland reinvests a portion of the funds generated by the Transient Occupancy Tax (TOT) in community non- profits through an annual grant program. Through the grant program, the City is purchasing specific services from non- profits that it might otherwise provide directly. The grant program has four basic goals: • Economic Development. The grant program will support the creation, retention, and expansion of businesses and other ventures that enrich our community by creating goods and services that provide employment opportunities while maintaining and enhancing the overall quality of life. The 2011 Economic Development Strategy provides both policy level and action level guidance for eligible grant application programs and activities. • Cultural Development. The grant program will support increased diversity of and accessibility to the creative arts and cultural opportunities in Ashland for citizens and visitors and will support the visitor economy, maintain and promote job growth in this sector and enrich the overall quality of life in the community. • Tourism. As a long standing pillar of Ashland's economy, tourism programs support programs, activities and events that act similarly to more traditional traded sector activity in that dollars from outside the community are brought in and circulated locally to the benefit of our local businesses. • Sustainability. The grant program will create and support programs and activities to further support efforts to ensure Ashland is environmentally, economically and socially resilient as a community. 1. GRANT CATEGORIES Non-profit organizations applying for grants must identify the category of funds that their application meets and will be evaluated and scored by the sub-committee using the attached scoring sheet. Applicants may request funds from multiple categories, but the justification for applying in multiple categories needs to be clearly spelled out in the application. A. Economic Development Grant allocations in the Economic Development category will be made to support and implement the City's Economic Development Strategy. Elieible activities include: 1. Specific implementing actions or programs identified in the economic development strategy. Those activities can be found at http://ashland.or.us/files/Ashland EconomicDevelopmentStrategy Final.pdf, on pages 8 through 22. 2. Programs and activities that foster and support the creation, expansion or retention of existing businesses in the community that • rely on and earn a competitive advantage from innovation, creativity, design, proto-typing and technology • produce specialty and value added goods or services with a market beyond our local economy 3. Programs and activities that improve the coordination, communication and collaboration among local and regional economic development partners. 4. Programs and activities that promote and/or provide and increased availability of investment capital for local business. 5. Programs and activities that improve local educational & technical skills to match local business workforce needs. Page 1 of 4 Criteria for evaluation The City seeks to accomplish the desired outcomes from the economic development strategy (page 23) through the grants, and therefore these outcomes will be used to evaluate applications. Applications for the Economic Development Grants will be evaluated and seered based on the following criteria: • Likelihood that the proposed activity will increase or support an increase in total employment within Ashland. • Likelihood that employment and businesses additions being served by the grant will be added in enterprises that rely on innovation, creativity (etc.) or produce a specialty good or service for export. • Likelihood that the proposed activity will support and. assist existing businesses within Ashland in expanding or remaining in the community. • Likelihood that the proposed activity would fesult in support and foster an increase injobs that are at or above the median income for Ashland. B. Cultural Development Cultural development grants are intended to support the retention and growth of Ashland's unique cultural offerings, both to residents and tourists alike. Leveraging and expanding Ashland's cultural assets such creative, performing and visual arts, historic preservation and education, brings creative community prosperity and adds to the overall quality of life of the community. Ashland's visitor economy also thrives on the cultural and performing arts sector, so increasing the diversity of cultural opportunities for visitors strengthens the tourism economy overall. The City's grant program is designed to strengthen existing cultural activities, increase the number and diversity of cultural activities, maintain and expand job growth in this sector, and increase both resident and visitor access to these activities. Elieible activities include: 1. Programs or activities that create cultural offerings unique from existing local offerings, activities or programs. 2. Programs or activities that ensure the long-term success of local cultural groups. 3. Expansion in size or scope of existing cultural offerings, activities or programs. 4. Expansion ofaeeessbyaedienees audience access to those existing offerings, activities or programs. 5. Support services targeted to existing or proposed cultural offerings, activities or programs. Criteria for Evaluation. Grant applications for cultural development monies will be evaluated and seared based on the following: • Amount that Likelihood that the proposed activity will diversify the number, type, or availability to cultural service, activity or program proposed compared with existing local cultural opportunities. • Ameant that Likelihood that the proposed activity ensures long-term access to an important aspect of the visual or performing arts or other local cultural attraction. • Degree to which the proposed activity will collaborate with an existing cultural program or will leverage another cultural opportunity. • Amount whieh Likelihood that the proposed activity will increase access to cultural programs or activities, espeeially particularly by those who may not otherwise have access such as low income residents, children, or minority groups. C. Tourism As a long standing pillar of Ashland's economy, tourism programs support programs, activities and events that act similarly to more traditional traded sector activity in that dollars from outside the community are brought in and circulated locally to the benefit of our local businesses. Criteria for Evaluation. Grant applications for tourism monies will be evaluated and scored based on the following: • Likelihood that the proposed activity or event will increase hotel/motel occupancy or increase local restaurant and retail business sales. Page 2 of 4 • Likelihood that the proposed activity will increase the total number of jobs in tourism, hotels, restaurants, and retail businesses in Ashland. • Likelihood that the proposed activity will increase hotel/motel occupancy and restaurant/retail business in Ashland in the months of October through April. • Likelihood that the proposed activity will create or support a new non-traditional tourism related event. D. Sustainability The goal of the sustainability grants process is to support the exploration and expansion of efforts to ensure that Ashland is an environmentally, economically, and socially resilient community we41 now and into the future. Eligible activities include: 1. Program development, education & training, and outreach related to: local renewable energy supply, production and use; energy efficiency and conservation; water use efficiency and conservation; local food supply; local natural resource or ecology; resource reclamation, reuse and recycling. 2. Programs and activities that would direct!), assist local businesses in energy, water, waste reductions, and supply chain efficiencies ands a eduetiens. 3. Programs and activities that support and increase local to local purchasing either by businesses or by retail consumers. Criteria for Evaluation. Grant applications for sustainability monies will be evaluated and seared based on the following: • Likelihood that the proposed activity will contribute to reduced consumption of a critical resource by citizens or businesses in the community. Resources include fuel, electricity, water, land, air, or other natural resources. • Likelihood that the proposed activity will be "transferable." That is, the lessons and experiences gained through the program or activities can be transferred to another resource, organization, or community. • Likelihood that the proposed activity will reduce citizen or business dependence on food, goods or services shipped in from outside the Rogue Valley, i.e. "buy local" efforts. • Degree to which the proposed activity provides quality sustainability related educational opportunities to the community. 11. GRANT APPLICATION AND AWARD REQUIREMENTS Grant applicants and corresponding grant applications must adhere to the following program requirements: I . Grantee shall be registered as a 501(c) non-profit* * If your organization is being sponsored by or legally affiliated with a registered non-profit; a letter from that organizations Board of Directors recognizing the affiliation and a copy of the 501 (c) verification of the sponsoring non-profit 2. Grantee shall be a non-government entity. 3. Minimum grant award will be $1,000 per grant category and $5,000 per grant application. 4. Grant award shall be utilized consistent with the associated applicant proposal and shall be primarily oriented to the grantee's Ashland activities and programs. Grant funds may also be utilized for a proportionate share of Grantee's everall administrative expenses associated with the Ashland activities and programs proposed. 5. An applicant can apply for grant finds from more than one category, however, it is the responsibility of the applicant to specify the categories and funds requested for each category and clearly describe how the proposal meets the criteria for each category. 6. Grantees must submit the application to the City prior to the deadline, which is established each year by the City's Administrative Service Department. Absolutely no late applications will be accepted. The Citv is aware that sometimes "life" intervenes,-and thereforewe-arge-grantees applicants are advised, to have a back up plan to ensure that the application is not late. 7. Incomplete applications. (see application cover page) will not be forwarded to the grant review committee for consideration 8. Materials submitted beyond those required and listed on the application cover page and application form will not be forwarded to the grant review committee as part of the application packet. Page 3 of 4 III. GRANT REPORTING Grant award recipients shall submit a written report to the City of Ashland at the end of grant period. Report requirements include: Report Content 1. Financial summary of the utilization of grant funds towards the objectives set forth in the grant award application. 2. Statistical summary of the positive economic, cultural or sustainability impacts associated with the utilization of grant funds based on the scoring categories used to make the grant award. Applicants should provide actual data on one or more of the following outcomes: • Number of actual jobs created as a direct result of the City grant. • Number of new business licenses issued as a direct result of the City grant. • Median wage of actual jobs created as a direct result of the City grant. • Number of people who travelled to Ashland from over 50 miles away.as a direct result of activities funded by the City's grant. • Number of additional overnight stays in Ashland transient lodging businesses as a direct result of the City's grant. • Number of additional events offered in Ashland as a direct result of the City's grant. • Number of additional people who attended a cultural event in Ashland as a direct result of the City's grant. • Number of additional children, seniors, or low income residents who attended a cultural event in Ashland as a direct result of the City's grant. • Amount of conservation or reduction in use of a critical natural resource by Ashland residents, businesses or visitors that is directly attributable to the grant. Document the resource and the evidence that the grant activity resulted in its conservation. 3. Any other program or activity specific data associated with the grant award. Report Submittal 1. End of Grant report shall be submitted to the City Administrator's Office by October I" following the end of the grant award period (July 1-June 30). 2. Failure to submit an acceptable End of Grant report by the required due date disqualifies the grantee from future grant application eligibility. Page 4 of 4 CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting A Resolution Authorizing a Rate Increase for Solid Waste Collection and Hauling Services Provided by Recology Ashland Sanitary FROM: Dave Kanner, City Administrator, kannerd@ashland.or.us SUMMARY At Council's direction, staff hired a consultant to review the financial condition of the City's franchised solid waste hauler (Recology) to determine the validity of their request for a significant increase in garbage rates. That review, conducted by Chris Bell, CPA, determined that Recology is entitled to an additional 8% rate increase. This resolution implements an across-the-board 8% rate increase for all solid waste collection services, effective January 1, 2013. For a residential customer with a 32-gallon can or cart, the most common service provided in Ashland, the monthly rate will increase from $17.86 to $19.29. BACKGROUND AND POLICY IMPLICATIONS: Recology approached the City Council in December 2011 with a request for a 23% rate increase, based on a gross annual loss of $434,000 for the prior year and a projected loss for 2012. Council instead approved an 11 % increase to cover the then-current losses and directed staff to hire a consultant to conduct an independent financial review of Recology's Ashland operation and the validity of its request for the additional rate increase. Staff contracted with Chris Bell, CPA, a Camas, Washington, based consultant who specializes in such rate reviews. Mr. Bell determined that based on current operations, Recology is in fact entitled to an additional 8% rate increase. However, his report also noted that the recycling depot and the yellow bag/sticker service lose money, meaning all Recology customers are providing a subsidy for those services whether they use them or not. In addition, Mr. Bell noted the inefficiency of the manual collection system used by Recology. While a conversion to an automated'collection system would require another small rate increase in the short term, it would stabilize rates in the long-term. The City's franchise agreement with Recology is very old and does not identify which expenses are considered allowable or disallowed in ratemaking proceedings. This alone points to the need for City to craft and enter into a new franchise agreement with Recology that more clearly delineates their role as a franchised contractor to the City. The Council has requested that a new franchise agreement with Recology be developed, and work on that agreement will begin after the first of the year. FISCAL IMPLICATIONS: An 8% increase in monthly residential garbage rates amounts to $1.43 per month for a typical customer. Page I of2 CITY OF ASHLAND STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of an 8% rate increase for Recology Ashland Sanitary, with the understanding that the City and Recology will begin working on the terms of a new franchise agreement after the first of the year. SUGGESTED MOTIONS: I move approval of a resolution authorizing a rate increase for solid waste collection and hauling services provided by Recology Ashland Sanitary. ATTACHMENTS: Resolution Proposed Rates Page 2 of 2 RESOLUTION NO. 2012- A RESOLUTION AUTHORIZING A RATE INCREASE FOR SOLID WASTE COLLECTION AND HAULING SERVICES PROVIDED BY RECOLOGY ASHLAND SANITARY RECITALS: A. The City of Ashland contracts with Recology Ashland Sanitary Service by means of a franchise agreement for provision of solid waste and recyclable materials collection and disposal services within the City until March 31, 2018. B. The franchise agreement, Ordinance 2582, states Recology can petition the City Council to increase its solid waste collection and disposal rates and seek binding arbitration if the parties fail to agree on new rates. C. Following a request by Recology Ashland Sanitary Service in December 2011 for a 23% rate increase, the City granted an 1 I % increase and directed staff to conduct a thorough review of rates and services in order to determine if an additional rate increase is warranted. D. The City contracted with Chris Bell, CPA, for a rate review, which determined that Recology is entitled to an additional 8% rate increase in order to achieve a usual and customary profit margin on Ashland solid waste disposal services. E. The franchise requires that rate increases must be approved by Council resolution. THE CITY OF ASHLAND RESOLVES AS FOLLOWS SECTION 1 The rates for the collection, hauling and disposal of solid waste and recyclable materials within the city of Ashland as indicated in Appendix A are approved. SECTION 2 The adopted rates will take effect January 1, 2013, and shall remain in effect unless amended by a vote of the Ashland City Council. SECTION 3 The City will review current services and discounts provided by Recology; propose franchise agreement revisions to reflect a formula for rate increases hereafter and current best practices for solid waste collection; and, seek a mutual agreement with Recology on a subsequent rate increase and on priorities for solid waste collection services. SECTION 4 This resolution takes effect upon signing by the Mayor. This resolution was read by title only in accordance with Ashland Municipal Code. PASSED and ADOPTED this day of 2012. Barbara Christensen, City Recorder Page 1 of 2 SIGNED and APPROVED this day of 2012 John Stromberg, Mayor Reviewed as to form: David Lohman, City Attorney Page 2 of 2 a ti ti m N H O N ti m 0 ti Q m N > m Q N C n Q1 r1 a 3 N Q 0 O O U 'O 41 N e0 Q N N m C O1 I~ l0 t0 N N ' a N N W v1 h O O Ol 00 h tp O I~ 0 rl M V1 Q N 0 O d 0 0 0 0 0 0 0 -p ~ ao ao ao 00 0o ao C `u Q V ti L C V 2 O a W T ~n Z ~ m l0 Ol Ol N O y c D o w Q Co rv Q o o y C J N N ti Q O M N d 'c M c z 3 N s ~ u ~ a ¢ a' ~ in a N M m O m o m v L N y t0 rl N h Ol N O Q U C C 00 1~ N O lD O d m y v n of m b M N . p N M V1 ~ J V o ° U v ° o ' m N N m o m o ti a N m o E N d h N c `y ui a Eo a `w Z U E O N J u m m a y o m o u a o v ' T W u v a - ~ v Y O ~p m N O c C a a N m ~ 0 0 0 0 U - - Y p (0 f0 N IO O1 3 V 4! N Q tp tp 'a. d 1' m l0 01 Ol IA T w C Ul N a d O a 0 a` a c. 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J (p o e Q m Q N m N ~ N y ~ L O H J Z U 41 UI Y N N N M N " x 3 3 3 3 3 ma "~a w u u u u V V a a . v a -O a v v v c c c c c O v o ° ° «v. 76 -M -Fo v U l7 l7 ~ ~ s ~ ti N \o ~ m a v 0 n 0 a c m L Q CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting Annual Appointments to the Citizen Budget Committee FROM: Barbara Christensen, City Recorder, christeb@ashland.or.us SUMMARY Annual appointment of two positions on the Citizen Budget Committee with 4-year term ending of December 31, 2016. BACKGROUND AND POLICY IMPLICATIONS: These vacancies occurred with the term endings of Denise Daehler and David Runkel on December 31, 2012. The deadline for submission of applications ended on November 16, 2012 and notice of these vacancies were published in the local newspaper and placed on the city website. Of the two members whose terms are ending, both Denise Daehler (appointed 3/6/2012) and David Runkel (appointed 12/15/2009) have requested reappointment. Three new applications were received by Stef Seffinger, Scott Mangicaro and Michael Hersh. Due to Oregon Budget Law (ORS 294.414) the application by Stef Seffinger was withdrawn. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: None SUGGESTED MOTION: I move to appoint and to the Citizen Budget Committee with term ending of December 31, 2016. ATTACHMENTS: Scott Mangicaro application Michael Hersh application Page 1 of 1 CITY OF ASHLAND APPLICATION FOR APPOINTMENT TO CITY COMMISSION/COMMITTEE Please type or print answers to the following questions and submit to the City Recorder at City Hall, 20 E Main Street, or email christebri ashtand.or us. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name: -Scott Mangicaro Requesting to serve on: Budget Committee (Commission/Committee) Address: 328 Palm Ave. Ashland, OR 07520 Occupation: Bank Teller at Wells Fargo/Musician Phone: _ (315) 439-2174 Home (541) 488-0928 Work- (541) 488-0928 Email 'smangicaro@gmail.com Fax 1. Education Background What' chools have you attended? Onondaga Community College/ State University of New York, College at Oneonta What degrees do you hold? Bachelors of Arts, Music Industry What additional training or education have you had that would apply to this position? I served as a student Senator for my college from 2008-2010 as a member of the Budget Committee/Finance Board, Research Committee, External Affairs, and Public Events Committee. 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? My position as a Student Senator on the schools Budget Committee/Finance board will transition seemingly to Ashland's Budget Committee. I have over two years of experience managing a $1.2 Million dollar budget, reviewing and analyzing fund allocations for over 95 student club organizations. My role on the Research Committee has also given me the opportunity to work hand in hand with our schools faculty members with drafting grant applications/guidelines for our student body and allocating grant approvals. I would also add that I have had an excellent opportunity as a bank teller at Wells Fargo right here in Ashland that has given me the customer service experience to be able to work with our local business owners and understand what it takes to help them succeed financially. Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? I would love to have the opportunity to speak with current members of the Budget Committee to learn more about how the committee functions at a team and individual level. I would be even more interested to attend as many conferences/seminars that this committee is involved with in order to better understand how I can be a strong asset to the committee. F N 3. Interests Why are you applying for this position? I am applying for this position on behalf of my passion to serve the people of Ashland and to help maintain a strong community with the financial support it deserves. Ever since the financial collapse of 2008, I have taken a strong desire in understanding how not only our nation, but our community can work together to prevent such a catastrophe from happening again. In order to make big changes with our nation, we have to start small and local. I can't think of a greater city to be a part of where I could have the opportunity to impact people's lives for the better. 4. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? Yes, evening meetings would work better with my work schedule, but if they are planned well in advance, I can take the necessary time off. 5. Additional Information How long have you lived in this community? Since August 2010. Please use the space below to summarize any additional qualifications you have for this position. Although I have not lived in Ashland for very long, I feel that I have developed a strong sense of well-being with this community. I am confident with my work experiences that I will more than capable to make sound concise decisions on the behalf of the Ashland community. My experience as bank teller helping customers with their financial needs, and playing music down town to help create a more positive and entertaining atmosphere for our city is a daily privilege I have as an active member of our community. 11/18/2012 Scott Mangicaro Date Signature 1 Nov , g~. zoo? 12 November, 2012 e Y., City Recorder City Hall, 20 E. Main Street Ashland, OR 97520 Subject: Citizen Budget Committee Attachment: Application to Serve on the Subject Committee I believe that I can make a positive contribution to the Citizen Budget Committee, and I pledge to be diligent and open-minded during our deliberations. Please feel free to contact the Directors and Coordinators where I have been volunteering, to find out more about me. I will make myself available for interviews, as needed. Thank you for the opportunity to submit my application. Michael S. Hersh 932 Morton Street Ashland, OR 97520 ~ 541-552-0698 mhersh@ieffnet.org CITY OF ASHLAND APPLICATION FOR APPOINTMENT TO CITY COMMISSION/COMMITTEE Please type or print answers to the following questions and submit to the City Recorder at City Hall, 20 E Main Street, or email christeb(rilashland.or.us. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name: Michael S. Hersh Requesting to serve on: Citizen Budget (EenmftissierJCommittee) Address: 932 Morton St., Ashland, OR 97520 Occupation: Retired Phone: Home; 541-552-0698 Work; N/A Email; mhersh@eeffnet.ory Fax; 541-552-0698(call first) Education Background What schools have you attended? Stevens Institute of Technology and San Diego State U What degrees do you hold? B E (Gen'l Eng'g), M S (Metallurgical Eng'g), MBA (Organizational Management Focus) What additional training or education have you had that would apply to this position? DoD Management College, Program Mgt Diploma (5-month residency course) Karrass Seminars on Contracts and Contract Negotiation 1. Related Eanerience What prior work experience have you had that would help you if you were appointed to this position? 50 Year Aerospace Career: Engineer, Program Mgr, Marketing Mgr, General Manager (Small Co.). Principal of Sub Chapter S Corp as an Independent Consultant (Last 8 years) Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? Yes; I would benefit from conferences and seminars on municipal budgeting, allocation strategies, plus short term and long term strategic planning. ~r, 2. Interests Why are you applying for this position? I am an active resident and homeowner, who volunteers at a number of non-profit organizations and cares deeply about Ashland. I believe increased fiscal efficiency would produce sufficient funds for an improved life style for all our citizens. 3. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings`? Yes, I am available. I have a flexible schedule; I prefer afternoon or evening meetings. 4. Additional Information How long have you lived in this community? Over 10 years. Please use the space below to summarize any additional qualifications you have for this position. I have served on the Board of Directors, as Treasurer and as President of several Homeowners' Associations. Currently, I am the outgoing President of Park Estates Association (66 Homeowners/Lots located on and around Morton Street above Forest.) I actively volunteer with the Ashland Police Department, Science Works Hand-On Museum, OSF, Tudor Guild, JPR, AIFF and the Siskiyou Singers. I also deliver Meals on Wheels in Ashland every Tuesday. I am a recipient of a City of Ashland Certificate of Appreciation for Volunteering, and an Oregon Governor's Volunteer Award. During my professional career, I served on the American Society of Materials, International (ASMI) and the American Institute of Aeronautics and Astronautics (AIAA) National Committees. I was a Registered Professional Metallurgical Engineer (California). I was also the chair of ASMI local chapters. 14 November, 2012 G Date ; Michael S. Hersh IWO CITY OF ASHLAND Council Communication December 4, 2012 - Business Meeting Appointment to Audit Committee at-large Citizen and Council/Mayor Liaison FROM: Barbara Christensen, City Recorder, chri steb(-a),ashl and. or.us SUMMARY Council appointment of Thomas Hepford to the Audit Committee with a term to expire April 30, 2015 and Council/Mayor Liaison with a term to expire April 30, 2013? BACKGROUND AND POLICY IMPLICATIONS: Ashland Municipal Code (AMC) Chapter 2.11.0 10 FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REOUESTED ACTION: None SUGGESTED MOTION: fa/'V, Motion to approve appointment of Thomas Hepford to the Audit Co ttee with a term to expire April 30, 2015. uo f l~ Motion to approve as Council/Mayor Liaison to the Audit Committee with a term to expire April 30, 2013. ATTACHMENTS: Application received Page I of I F, r CITY OF ASHLAND APPLICATION FOR APPOINTMENT TO CITY COMMISSION/COMMITTEE Please type or print answers to the following questions and submit to the City Recorder at City Hall, 20 E Main Street, or email christeb(i~ashland.or.us. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name: Thomas Hepford Requesting to serve on: Audit Committee N~~~ 1 'y ~O B y 20 Address: 885 Clay St #132, Ashland, OR 97520 Occupation: CPA Phone: Home: 785-550-3462 Work: 541-488-1551 Email: thom@nagelpadilla.com Fax: 541-488-1552 Education Background What schools have you attended? Emporia State University, Washburn University (both are in Kansas) What degrees do you hold? Bachelor of Science in Business; Major: Management Minor: Economics What additional training or education have you had that would apply to this position? Accounting coursework, CPA certification, continuing education in accounting, 1. Related Experience What prior work experience have you had that would help you if you were appointed to this position? Compilation, payroll and tax preparation - public accounting Financial/cost reporting and budget development/analysis - corporate management of retirement communities Bookkeeping - non-profit & government agencies Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? Educational opportunities in unfamiliar subject areas may be beneficial. I believe: it would depend on the subject matter being covered. pus 2. Interests Why are you applying for this position? I feel it is important to participate in the operation of my community. This particular opportunity would be a good initiation to that goal because it involves a familiar subject area. Therefore, I will be able to add value to the process. 3. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? My schedule can be pretty full during tax season but my employer supports this opportunity. Non-business hour meetings are my preference. 4. Additional Information How long have you lived in this community? I arrived on July 2, 2012 Please use the space below to summarize any additional qualifications you have for this position. As a new Ashland resident and CPA, I offer an unbiased perspective and training in approaching issues objectively. In my career, I have read and discussed audit reports, . analyzed financial statements and sought continuing education in governmental and not- for-profit financial reporting. Date Signature ~r~ CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting Portable Toilet Adjacent to Calle Guanajuato Recycling Area FROM: Dave Kanner, city manager, kannerd@ashland.or.us SUMMARY In October of 2011 the Council authorized the placement of a portable toilet adjacent to the recycling area for Calle Guanajuato for a trial period through fiscal year 2012. Staff is now seeking direction from the Council on whether to remove the toilet or to leave it in place. BACKGROUND AND POLICY IMPLICATIONS: In October 2011, the Homelessness Steering Committee requested the City Council to allow three portable toilets to be placed in different locations in town: at the north and south ends of town and in the downtown area. The Council's decision was to place one toilet at the Calle location on a trial basis for fiscal year 2012. The toilet was installed in November 2011. Attached is a report from D-n-D Porta Potti. The report indicates that the unit was cleaned twice per week and the usage was low to medium. In the past few months, graffiti and vandalism has occurred and our costs have increased. The Parks Department will be contracting for two portable toilets to be located on Winbum Way for use during the ice skating season. FISCAL IMPLICATIONS: The cost of the portable toilet was originally $128.50 and increased to $148.50. The value of the unit is $1500. Costs for the toilet have been paid through facilities. . STAFF RECOMMENDATION AND REQUESTED ACTION: N/A SUGGESTED MOTION: I move to direct staff to remove the portable toilet. or I move to direct staff to leave the portable toilet in place. ` ATTACHMENTS: Report from D-n-D Porta Potti Page I of 1 ~N M8y-25-2005(WE0) 18:23 P.001/005 CALL MEW@ ffigvHgEmm @2N@@Z Phone: 1-800-RENT DND 1-800-736-8363 Fax: 541-476-7748 TO: DATE: **r IN v-l% Sax rnA AM, C- FROM: REGARDING: ❑ URGENT ❑ REVIEW ❑ PLEASE REPLY COMMENTS: l_~ '~m.~ ui1~,41D M = Y`hos\iii- c SIGNATURE: MR9-25-2005(WEO) 18:23 P.002/005 r i2v Rent to: l .C`la n f1~GJ~ ~.5 \.C~ . Unit No. _ Date Ordered: Date Delivered: By. Location: `.5i w'k ; (o kk) i, ~llf~°C\C• Special Instructions: SERVICE CODE: E-WK E.O. WK 2 X PER WK DAYS +~~G SERVICE RECORD Yr. l - -I3 WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 NOTES: JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV #IL1/Lry_S DEC KEY: SERVICE: DATE - INITIAL USE - TP I TIME KEY: NON-SERVICE: "CIRCLE RECORDING AREA" A. Customer request / 8. Blockage / C. Other Damaged unit: ' Service date and note. MRY-25-2005(WED) 18:23 P.003/005/ D-n D Porta POW CONTRACT:29213 ~ ORCER: i 1148 S.W. Louise C1re10 • GraRW Peed OR 97626 (691) 773-836D • GP (641) 476-36S4 • t-56o-RSNT D-N-D (756)5383 PORTABLE SANITATION FACILITIES 1 DELIVERED TO: Aml 1'CALE. NUMBER A1AJ CU671MEfl NUMBER -NAME -ADDRESS -PHONE SITE NAME-ADDRE6S •PNONfi 0418 CITY OF ASHLAND WATER DEPT. WINSURN WAY 51 90 N. MOUNTAIN 51 WINBURN WAY NEED TO CALL 1/2 HR B-4 DELIVY ASHLAND, OR 97520 NEEDS CABLE & LOCK ASHLAND 541-552-2325 541-951-0355 951-0292 DALE. OATS ORDERED DATE wANTFO ORDERED BY TERMS 11/10/2011 11 14 2 11 402-MON MIKE NET 10 DAYS P.O. NUMBER JOB NUMBER CANCELLED BY DATE CANLELLEO SPECIAL INSTRUCTIONS REONED BY OATS DELPJERED DATE START BILLING DATE END BILLING ENTERED BY I"rn 11/14/203.1 CG 11-1 g-11 1 „ JDAYIEW Rr ISM UNIT UNIT SERVICE UNIT RENTAL QUANTITY DESCRIPTION CODE VALUE RATE 1 A~CESSIBLE.UNIT $ 1500.00 128.50 /UNIT/28 DAY.9 bwn r1l,4 3 vr` ~ y TAX EXEMPT Ssro:. bcur s '~f . r h rnan I ~ yl)y~ ~QaFT~~'! W' ✓ Si~~ Vr IL y `r© .1,J IVA 6t~ ~ c .A ~PA NO \0 t acv UNITNUMB ' y\ SERVICED SERVICED SERVICED SERVICED SERVICED SERVICED II > 0 9:0~ dA o°y 'Ik:o a7 I1.C Ito aw t y ^u\ti 0`•% N .0 m3 Ib , illN 1 •N ~ ~OD.t ,may in Am f^I~ 1; r Iry y., tt Jr 4',1'1 t.0 'J yCd I +1 y.._ '7• y,E• 16 (Tr-~~ la /AN- 7/J 7,G V\ t %L IV NILE v,1 0' rull 'NI N10 tl \ HIV ly 'M 1.- 11 INN MV" r o b D ►6° lg ~ . p ~1~ _ y,,, 0 p p nJM' i~'N' h° ! 71: I E''r a kIM s tro ls ~ < •2A'1 2 t N I z o' rN !„~.h r I I& ! e I Ia 35 `i f fi L MR9-25-2005(WED) 18:23 P.004/005 • Rent to: ! ~ Unit No. Date Ordered: Date Delivered: By: Location: S ( I Onlax Wa I fhMa nd Special Instructions: SERVICE CODE: E.WK E.O. WK 2 X PER WK X DAYS j aj+ SERVICE RECORD Yr. nia WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 NOTES: JAN FEB - MAR APR MAY . JUN - _ _ - - - JUL. AUG SEP - - FE /_,al OCT i - dS 19 T~ - - t /l 0 LL/6Ld C, /4_ _oi NOV lr,,( ~"/SiSJ - - - DEC KEY: SERVICE: DATE - INITIAL USE - TP / TIME KEY: NON-SERVICE: "CIRCLE RECORDING AREA" A. Customer request / B. Blockage / C. Other • Damaged unit: ` Service date and note. MAY-25-2005(WED) 18:23 P.005/005 st-N+•Y~1 • D-n-D Porta Potti CONTRACT: 292 13 ORDER: 1 1149 S.W. Louise Circle = Grants Pass. OR 97528 (541) 773-6350- GP (541) 476-3664. 1•000-RENT D•N"D(738)8363 y- PORTABLE SANITATION FACILITIES LA n DELNERED TO: CUSTOMER NUMBER -NAME. -ADDRESS-PHONE BITENAME -ADDRESS -PHONE d 0418 CITY OF ASHLAND WATER DEPT. WINBURN WAY 51 90 Di. MOUNTAIN 5L WINBURN WAY NEED TO CALL 1/2 HR B-4 DELIVY ASHLAND, OR 97520 NEEDS CABLE & LOCK ASHLAND ;41-552-232S 541-951-0355 951-023-2- DALE DATE ORDERED DATE WANTED ORDERED BY T AMD 11/10/2011 11 14 2011 402-MON MIKE NET 10 DAYS P.ONUMBER JOB NUMBER. CANCELLED BY DATE CANCELLED SPECIAL INSTRUCTIONS BOWED BY DATE DELIVERED DATE START BILLING DATE END BILLING ENTERED BY M (n 11/14/2011 CG !,,A9-11 RT BM UNIT UNIT SERVICE UNIT (4- , - RENTAL QUANTITY DESCRIPTION CODE VALUE IA14- RATE 1 ACCESSIBLE UNIT --44wm,1C~/• $ 1500.00 $ 128.50 /UNIT/28 DAYS ~llf/1~ TAX EXEMPT NR NUMBG.B: SERVICED SERVICED SERVICED SERVICED SERVICED SERVICED 4s Sr 1,61,6 DO /1-0 9: f!r LD&AA %7Z8 la~ I% ~ ZD 17 k L o:10 l l q: LT L'O 9:4S 9!Ob Z to n M-k I M. C) rib rA --1 9 2) 'on ul IL. q." 3 ;;t> >3 .2 J.0 1 ZLT 2.1 I ro "Al.ki ~ rs z a5 z~l r za 'L, 9 1 7 p- 1 0 Al; VI A 31 I "o -AA CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting Procedure on Selection of Park Commissioner Position #3 FROM: Barbara Christensen, City Recorder, christeb@ashland.or.us SUMMARY On November 6, 2012, Park Commissioner Rich Rosenthal was elected to Council Position #5. Commissioner Rosenthal intends to resign from the Park Commission effective December 31, 2012, which will result in a vacancy on the Park Commission with a term ending December 31, 2014. BACKGROUND AND POLICY IMPLICATIONS: City Charter states that a vacant elective office shall be filled within sixty (60) days (which is March 1, 2012) by the City Council electing some qualified person to fill the 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. (Biennial elections take place very two years; next biennial election will be November, 2014) City Charter does not provide for a separate process of appointment to the Park Commission when a vacancy occurs. This is the first time that a vacancy has occurred mid-term for the Park Commission. There is no prior process or action that can be provided as an example. STAFF RECOMMENDATION AND REQUESTED ACTION: Council consideration of the following: 1. Request the Park Commission to work with the City Elections Officer to determine a process for reviewing applications and vetting applicants. The position will be advertised in the local newspaper and City website with a deadline for applications. 2. Once the Park Commission has completed its selection process and made a choice for appointment, a request for approval and appointment by Council will be placed on the agenda for your consideration no later than March 1, 2013. OR Council can choose to conduct the selection process for filling the vacant Park Commission Position #3. Direction would be provided to the City Elections Officer on the process for this appointment. ATTACHMENTS None Page 1 of I ~r, CITY OF ASHLAND Council Communication December 4, 2012, Business Meeting Second Reading of an Ordinance amending the City of Ashland Comprehensive Plan to adopt the Housing Needs Analysis as a Technical Supporting Document FROM: Linda Reid, Housing Program Specialist, Community Development, reidl@ashland.or.us SUMMARY Upon approval of second reading, the updated Housing Needs Analysis (HNA) becomes a technical supporting document to the Ashland Comprehensive Plan and could provide a basis for future legislative decisions, as well as identify potential actions for consideration by the city's housing program. The City of Ashland is not held to the state planning requirement to undertake a.periodic review of housing need as the Oregon Revised Statutes (ORS 197.296) only applies to communities with a population of 25,000 or more. However, as a guide to providing for Ashland's current and future housing needs an updated HNA, in combination with a Buildable Lands Inventory (BLI), is a useful tool in evaluating the appropriate distribution of units by housing type in consideration of changing demographics. Together these documents can be used to assist elected and appointed officials and staff by informing policy decisions with regard to population growth, housing development, economic development, redevelopment, annexation and overall growth management. BACKGROUND AND POLICY IMPLICATIONS: The City Council approved first reading of an ordinance amending the City of Ashland's Comprehensive Plan to adopt the Housing Needs Analysis as a Technical Supporting Document at their regular meeting held on November I I1n 2012. Since first reading staff and the legal department have made several non-substantive editorial and clarifying changes. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of the second reading of the ordinance amending the Comprehensive Plan SUGGESTED MOTION: Move for approval of second reading of an ordinance titled, "An Ordinance amending the City of Ashland Comprehensive Plan to adopt the housing Needs Analysis as a Supporting Document to the city of Ashland Comprehensive Plan." ATTACHMENTS: Housing Needs Analysis Ordinance 2012 Housing Needs Analysis Update Chapter VI [Housing Element] Appendix A, entitled "Technical Reports and Supporting Documents" Page I of 1 ~r, ORDINANCE NO. AN ORDINANCE AMENDING THE CITY OF ASHLAND COMPREHENSIVE PLAN TO ADOPT THE HOUSING NEEDS ANALYSIS AS A SUPPORTING DOCUMENT TO THE CITY OF ASHLAND COMPREHENSIVE PLAN Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined-thfough and additions are in bold underline. WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: 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. WHEREAS, the above referenced grant of power has been interpreted as affording all legislative powers home rule constitutional provisions reserved to Oregon Cities. City of Beaverton v. International Ass'n of Firefighters, Local 1660, Beaverton Shop 20 Or. App. 293; 531 P 2d 730, 734 (1975); and WHEREAS, the Ashland Comprehensive Plan contains policies regarding the availability of adequate numbers of housing units at price ranges and rent levels which are commensurate with the financial capabilities of Oregon households WHEREAS, the Housing Needs Analysis (2012) reflects the projected housing need in comparison to the supply of developable land within the Ashland City Limits and Urban Growth Boundary based upon specific land classification and constraints to development according to the Buildable Lands Inventory adopted in 2011. WHEREAS, the City of Ashland Planning Commission considered the above-referenced recommended amendments to the Ashland Comprehensive Plan at a duly advertised public hearing on October 9, 2012 and, following deliberations, recommended approval of the Housing Needs Analysis upon amendment to include information about the student population and information on the 60-year annexation and zone change programs. WHEREAS, the City Council of the City of Ashland conducted a duly advertised public hearing on the above-referenced amendments on November 6, 2012; and WHEREAS, the City Council of the City of Ashland, following the close of the public hearing and record, deliberated and conducted first and second readings approving adoption of the Ordinance in accordance with Article 10 of the Ashland City Charter; and Page 1 of 2 WHEREAS, the City Council of the City of Ashland has determined that in order to protect and benefit the health, safety and welfare of existing and future residents of the City, it is necessary to amend the Ashland Comprehensive Plan in the manner proposed, that an adequate factual base exists for the amendments, the amendments are consistent with the comprehensive plan and that such amendments are fully supported by the record of this proceeding. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. The above recitations are true and correct and are incorporated herein by this reference. SECTION 2. The City of Ashland Comprehensive Plan Appendix entitled "Technical Reports and Supporting Documents" is attached hereto and made a part hereof as Exhibit B. Previously added support documents are acknowledged on this Appendix. SECTION 3. The document entitled "The City of Ashland Housing Needs Analysis, (2012)," attached hereto as Exhibit A, and made a part hereof by this reference is hereby added to the above-referenced Appendix to support Chapter VI, [HOUSING ELEMENT] the Comprehensive Plan. SECTION 4. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 5. Codification. Provisions of this Ordinance shall be incorporated in the City Comprehensive Plan and the word "ordinance" may be changed to "code", "article", "section", or another word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 1, 5-6) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of 2012, and duly PASSED and ADOPTED this day of 2012. Barbara M. Christensen, City Recorder SIGNED and APPROVED this day of , 2012. John Stromberg, Mayor Reviewed as to form: David Lohman, City Attorney Page 2 of 2 CITY OF ASHLAND !:I HOUSING NEEDS ANALYSIS ~5 ~ jell=:: € s°• ~ ~ i, t t ' ~ A Technical Supporting Document to the Housing Element of the City of Ashland Comprehensive Plan Prepared by the City of'Ashland Community Development Department - Fall 2012 Table of Contents Executive Summary 2 • Findings 2 • Potential Strategies 6 • City Accomplishments 8 Section I: Introduction 9 • Backgrinmd-Oregon Planning Requirements for Housing 9 • Purpose-Housing Need versus Housing Demand 10 • Growth Management and Housing AffordabilitX 11 • }{ousing Needs Analysis Organization 13 Section II: Framework/Community Context 14 • Historic Population Trends 14 • Economic Conditions 16 • Employment 18 • Community Visions and Values 20 Section III: Housing Trends and Existing Conditions 23 • Residential Construction Trends 23 • Income and Affordability of Housing 26 • Rental Units 27 • Ownership units 30 • Buildable land supply 32 Section IV: Housing Inventory 34 • Sin~le- Familyand Maudb-c ur ousin_g. detached 34 • Manufactured Housing; in Parks 34 • Multiple or single-family units. attached 34 • Government assisted housing 35 • Owner Occupied units 37 • Renter Occupied Units. 37 • 1-lousing Age and Condition :31 Section V: Housing Needs 40 • Proj ing Ashland's Housing need 40 • Population Projections 40 • Age of Householder and age of projections 42 • Housing ownership by age of householder 43 • Household Income 43 • Household Size and Composition 44 Section VI: Baseline Forecast of Housing Demand 47 • Housing needs by type and density 48 • Flo itil; n_eecls of s , jal p0 pulatic>ns 53 Section VII: Meeting Housing needs to 2040 57 Appendix 62 -1- EXECUTIVE SUMMARY The 2012 Housing Needs Analysis provides a summary of housing and demographic trends within the City of Ashland in an effort to allow the City to meet the population's housing needs in the future. This report is intended to provide an evaluation of housing trends in Ashland since completion of the last detailed housing assessments, the 2002 Housing Needs Analysis and the 2007 Rental Needs Analysis. The following is a review of those trends, a brief summary of steps the City has taken to address the findings, recommended actions identified in the prior housing assessments, and an evaluation of what the results of those actions have been. Findings Ashland is growing-but relatively slowly: The City of Ashland has grown in population from 16,234 in 1990 to 20.078 in 2010 according to the US Census. This 0.79% historical growth rate is largely consistent with the City's Comprehensive Plan and Jackson County's population estimate for the City of Ashland that predicts the population will continue to grow at an average annual rate of approximately 0.75% between 2005 and 2060. Between 1990 and 2000 Ashland's population grew by 20% while the population grew by only 2.8% in the decade between 2000 and 2010. This marked disparity in population growth between these past two decades may suggest that the actual annual growth rate is trending toward a diminishing growth rate. If that proves to be the case. Ashland's comprehensive plan will need to be re-examined in the next five to ten years. Growth has not occurred evenly in all age groups: The population growth rate of individuals 65 years old and older increased at a faster rate in Ashland than in the rest of the State, while the population of individuals between the ages of 35 and 44 actually declined. In the last decades, Ashland has also seen a substantial decrease in the population of nearly all age groups between 15 and 55 (one exception was the 25-34 age groups which saw a 3.4% increase between 2000 and 2010). In contrast, the age groups 55 years old and older increased in population. with the exception of those 85 years old and older. -2- Figure 1. Ashland Persons per Abe Cohort 2000-2010 i f; 3500 LI {I' 3000 r! r, i. 'r 2500 r 2000 1500 1000 I ~ 500 I.' 0 m m ro ca ro m m co m ro ao ~ Gl m m m m m a, W W m m 0 I', ~ T T T T T T T T T T T II.. O 1 -1 r-r N M V Ln u1 l0 n 00 ~ u1 I" .j O u1 O u't L1 Ll to O v1 to I e-i -1 N N M Ln Q0 W r, t T Ln 00 2000 US Census 2010 US Census 1 r. This trend of an aging citizenry should persist into the future as the largest population growth has been and will continue to be in the age groups represented by the large baby boom cohort. This group which was in their 40"s and 50's in 2000, and their 50's and 60's in 2010, (where those groups saw increases of 110% and 85% respectively), will be in their 70's and 80's by 2020. Overal I the forecast for the State of Oregon (Source: OREGON'S DEMOGRAPHIC TRENDS February 2010, State Office of Economic Analysis) anticipates there will be 53% more elderly in 2020 than in 2010. Given Ashland's desirability as retirement destination such trending indicates Ashland will likely see a continuation of this trend. Fewer households own housing in Ashland compared to other areas: The 2010 Census showed 51 % of Ashland households own their homes and 49% are in renter occupied housing. Ashland has a lower percentage of homeowners and a higher percentage of renters than Jackson County with a 63.3% ownership rate, the State of Oregon with a 63.8% ownership rate or the Nation as a whole with at 66.6% homeownership rate. The 2000 Census data showed 52.3% of housing units in Ashland were owner occupied and 47.7% of units were renter occupied. This regional renters/owners disparity is likely caused at least partially by the presence of the University: the student age population that is typically in the market for rental housing increases the demand for rental units relative to the rest of the region. The fastest growing employment sectors in Ashland do not pay enough for a household to afford fair market rents: Individuals employed in the fastest growing employment sectors in Ashland, services and retail jobs; do not make enough money to pay fair market rent in Ashland. However, this trend is not unique to Ashland: in general, wages have been outpaced by housing costs since the 1980'5. The number of low-income households has decreased since 2000 after having increased between 1998 and 2000: Between 2000 and 2010 the estimated number of families and individuals living below the poverty level decreased from 12.5% to 11.5% and from 19.6% to 18.8% respectively. Although the decrease is slight, it may signal a reversal in a trend identified in the 2002 housing Needs Analysis; it found an increase of 2.7% in the estimated number of low-income households between 1998 and 2001. The 2010 Census now reports a decrease in the number of households who report having an annual income of less than $75,000 a year while the number of households reporting an income of over $75,000 has increased. This change could result from inflation, in-migration of high-wealth individual, or other underlying factors that warrant futher analysis before drawing conclusions from these raw numbers. Housing sales prices increased nearly 50% between 1998 and 2001 and have remained higher than the regional average: Housing prices in the early part of the decade rose precipitously, and in 2001 this trend was just getting started. In 2007 at the height of the housing boom, the average home price in Ashland was $438,750. With the fall out of the housing market in 2008 and the ensuing foreclosure crisis, housing prices in most areas fell drastically. Housing prices also fell in Ashland during the recession, though not as significantly as in other parts of the county. According to the Roy Wright Appraisal Service, the average sale price of the 85 housing units sold in Ashland in 2011 was $285,000. The median home sales price in Ashland is not affordable to households with median incomes: The 2012 median household income for a family of four in the Medford/Ashland Metropolitan Statistical Area is $58,500. In order to afford a median priced home in Ashland a household would have to earn $75,000 a year. Only 23.8% of the population reports having an income over $75,000 a year, while 50% of the ownership housing stock is targeted to this group. It is clear that there is an excess of ownership housing on the market at price ranges which are not commensurate with the earning capability of the majority of the population in the region. The largest dwelling unit gap exists for households earning less than $10,000 annually: The findings of the Housing Needs Model for the City of Ashland using 2010 Census Data shows that the City lacks an adequate number of rental units affordable to those residents with the lowest incomes, those making less than $10,000 a year. Households making 30% of the Area Median Income or less make up approximately 12.2% of all Ashland households. Only 3.05% of the City's rental housing stock (approximately 152 units) is considered affordable to this population. The City's current need for rental housing in a price range affordable to those with the lowest income is estimated to be 955 units; this leaves a gap of approximately 803 units needed to house these very low income households. I Iousin) Units affordable to these -4- populations, which include predominantly households under the age of 35, and to a lesser extent over the age of 55, could be offset by Housing Choice (formerly section 8) Vouchers. The 729 households under the age of 35 that report having an income of under $10,000 a year may be due in part to the presence of Southern Oregon University, which includes a high percentage of non- traditional students. Ashland has a large deficit of affordable owner-occupied housing units: The 2002 HNA found that 46% of Ashland households earning below the median income could not afford to purchase a house in Ashland. This number has grown to approximately 57%ofAshland households; over half of the current population cannot afford to purchase a home in Ashland. The Housing Needs Model shows that there is a deficit of housing stock costing less than $279.300 (only 22% of all housing units for sale in Ashland) while there is a surplus of 2.255 units above that price. Few multi-family units were built between 2001 and 2010: The 2002 HNA found that only 9% of the building permits issued between 1990 and 2001 were for multi-family housing types. Between 2000 and 2010. 19.6% of all building permits issued were issued for multiple family units (two-family units to five or more). "Though single family units tend to get developed at a rate twice that of multi-family units, the City has seen a significant increase in the development of multi-family units in the past ten years. However, not all of the newly built multi-family units were rental units, and many rental units were lost in the same period to condominium conversion. Ashland is falling short of providing the housing types identified in the 2002 Housing needs analvsis: The 2002 HNA found that more single-family units were being built than was estimated to be needed, while both multi-family housing and government assisted housing types were either falling short or not being built at all. It is clear that single-family ownership housing development remains the most prevalent type of housing development within Ashland, while the housing types most needed, including multi-family rentals and government assisted housing are not being developed in accordance with needs. Ashland has a relatively small inventory of land zoned for multi-family housing: The 2011 Buildable Lands inventory identified an existing capacity for up to 1,384 Multi-family units within the Urban Growth Boundary. The I lousing Needs Model anticipates up to 1,759 multi- family housing units will be needed to satisfy the anticipated demand for multi-family units by the year 2040. Without changes to allowable densities, increases in mixed use developments, or an increase in land zoned for multi-family the City may exhaust the supply of land available Ior multi-family housing, by the year 2034. -5- Implications of previous housing trends: • The number of affordable units in Ashland causes households to compete against each other for housing. • Land zoned for multiple-family is being consumed for single family ownership units such as townhomes and condominiums. • Housing costs are forcing Ashland workers to live in other communities • Housing costs may be contributing to reductions in school enrollment. • Housing costs may place greater demands on transportation systems and parking (i.e. with more people commuting). • Housing costs may limit economic development Potential Strategies Following is a summary of potential land use strategies for addressing key housing issues identified in the 2012 HNA. Encourage more multi-family housing: Promote policies that will increase the development of multi-family housing and provide more affordable rental housing and to meet the needs ofthe Population. The 2002 HNA also recommended an increase in multi-family housing, and in the last decade the historic development of multi-family rental housing has continued to be insufficient to satisfy demand. Suggestion: Increase the land supphv. The BLI data suggest that the City has capacity for about 1,384 multi-family dwellings whereas it is anticipated that 1,759 units will be needed by 2040. One approach to encourage apartment development is to designate more land for higher concentrations of residential units (High and Medium Density zones). Suggestion: Promote development ofr•esidential units in contn crcial and em loi.ment zones. The BLI assumes commercial developments within employment and commercial zones would only utilize 50% of their allowable residential capacity on average. Increasing the prevalence of mixed use developments (beyond the 50% expectation) will effectively increase the net supply of land and the total capacity for multi-family units. Suggestion: Consider restricting uses in certain zones to apartments. The building permit data suggest that a significant amount of land designated for high-density multi- family housing has been developed as single-family attached types that are owner occupied units. Designating certain lands for rental units would encourage development of apartments. Suggestion: Examine opportunities for reductions in parking requirements for the proi,i.vion of apartments meeting certain conditions. Studies have shown that the number -6- of vehicles per household is lower in areas that are more conducive to walking and have greater access to transit (City of San Diego Feb. 2011). A unit's size and level of affordability are additional conditions that could be further evaluated in consideration of needed parking and reduced parking requirements. Suggestion: Consider policies that encourage redevelopment or adaptive reuse of strtrclures. The location of rental units is also important. Increasing the supply of rental units near employment centers and the University will make these units more attractive. Suggestion: Develop more goi,c rtimcni-ussisied housing: The data show a need for nearly 800 dwelling units that are affordable to households with annual incomes of $10,000 or less. About 30% of these households, however, are in the 18-24 age range and another 25% are age 65 or over. The data suggest the City would need to develop as many as 50 units per year for the next 20 years to address this need. Given the number of total housing units developed in the City in any given year is typically less than 100, it is unlikely such a target could be met. A more realistic target would be a target based on a percentage of total units developed in collaboration with local housing organizations. Nyhich ~yould be 10-15 units annually. Encourage mare affordable single-family housing types. The average sales price ol'a single- family residence was over $282,000 in 2012. Following are some approaches that can increase more affordable single-family housing types: Suggestion: Evaluate land use incentives to provide.for small lots intended for small unit development. The data show a strong correlation between lot size. unit size and housing cost. The City could consider reductions in minimum lot sizes in certain residential zones to specifically promote the development of smaller dwelling units. Suggestion: Evaluate land use requirements to reduce barriers for manufactured housing. The City has identified a need of 2.4% of all future housing to be manufactured homes in subdivisions and manufactured homes in parks. Revising existing policies to more readily enable the placement of manufactured homes is one potential approach to allowing more affordable single family housing. Suggestion: Evaluate land use incentives to promote a~furduhle single family housing. The City should evaluate existing density bonus allocations to better inccntivize the voluntary inclusion of affordable single family housing in future developments Suggestion: Consider allowing Accessory Residential Units as a permltied use in single familvzones. The integration ol'ARUs into existing neighborhoods provides for small dedicated rental units serving single or two person households, and could also be a -7- resource for more affordable housing types. The City should evaluate ways to reduce regulatory barriers to the voluntary inclusion of ARUs in future developments and existing neighborhoods. Suggestion: Reclrrec clcreloprnenl Jec.~ fear low-income prgjec ls: The City should conduct a careful review of the components of housing cost and calculate the percentage of total unit cost that is a result of development fees. City Accomplishments Following the Completion of the 2002 Housing Needs Analysis and Housing Action Plan the City has completed a number of actions that directly address the recommendations identified in the prior analysis including the following: • Develop land use policies and incentives to encourage the development of affordable and needed housing types; o Passed annexation and zone change ordinance requirements to require the inclusion of affordable housing in new developments of a type commensurate with the market rate units provided and deed restricted for a period of 60 year (Ashland Land Use Ordinance 18.106.030). o Passed condominium conversion ordinance requirements that help preserve multi- family rental housing and affordable housing deed restricted for a period of 30 years per resolution 2006-13. o Passed minimum density ordinance requirements to ensure multi-family zoned properties are developed at a minimum of•80% the base density and are thus not developed as large single family lots. o Passed an ordinance amendment permitting small accessory residential units to be located on small lots in multi-family zones. • Develop more government-assisted housing o Coordinated with the Housing Authoritv of Jackson Count to develop 60 new units of government assisted affordable rental housing and assisted the project through joint acquisition of land, CDBG awards, and reduced development fees. • Reduce development fees for low-income projects o Amended the City's Affordable Housing System Development Charge waiver program to ensure a minimum period of aflorrdability ol'30 years for assisted units. o Amended the City's Community Development and Engineering fee waiver program to make affordable units automatically eligible for the waivers. o Developed a Housing Trust Fund framework for the dedication of resources to assist the City in meeting housing needs. -8- • Develop Organizational Capacity for Affordable I lousing o Dedicated General Fund and Community Development Block Grant (CDBG) resources to maintain a full time Affordable Housing Program staff position to work with providers of affordable housing to develop more government assisted housing locally; o Prioritized the use of CDBG funds to support the development of affordable housing consistently awarding the funds to projects that increase the supply of affordable housing City efforts, in collaboration with the local organizations providing affordable housing, have resulted in over 10% of all housing units developed since 2002 have been secured as affordable to low-moderate income households. This percentage equates to a total of 178' units secured as affordable over the last decade. Section I - Introduction The housing needs analysis serves as a background report to the Housing Element of the City of Ashland's Comprehensive Plan. The purpose of undertaking an analysis of housing needs is to increase the probability that needed housing types will be built and to ensure that the city has a suitable amount of land to meet the housing development needs. A housing needs analysis should include a comprehensive analysis of factors affecting housing needs and an up-to-date knowledge of trends affecting hoau,sing. Such factors along tii ith household incvtne and cost iglbrination, affect the need. for various housing (thes in a conannunitY. Background-Oregon Planning Requirements fi r Housing Oregon Revised Statutes (ORS) 197296 contains two key objectives. These relate to housing and land, as follows: Housing: Ensure that development occurs at the densities and mix needed to meet a community's housing needs over the next 20 years; Land: Ensure that there is enough buildable land to accommodate the 20 year housing need inside the urban growth boundary (UG13). The City of Ashland is not required by state planning requirements to undertake a periodic review of housing need since ORS 197.296 only applies to communities with a population of 25.000 or more. However, as a guide to providing for the current and future housing needs of its citizenry, a housing needs analysis is a valuable tool. A housing needs analysis provides elected See chart "Affordable Units per year- in Appendix U -9- and appointed officials and city staff with the necessary data to make decisions that balance the needs of the community with regard to housing, redevelopment, annexation and growth management, the preservation of farm land and rural areas with the need to accommodate population growth and economic development. This analysis reviews current conditions and sets the framework for policy discussions on housing needs. Purpose-Hocrsing Need versus Housing; Demand No one would dispute that that everyone should have access to decent, safe and affordable housing, but what does that really mean? Historically the evolution of housing and the housing market have not always provided those basic elements of housing which many of us now take for granted. The market has not always had an incentive or a mandate to provide those basic elements nor was there always agreement on what constituted decent, safe, or affordable when applied to housing units. • Decent Housing: The term decent housing speaks to the physical condition of housing units. Housing that lacks bathroom facilities, electricity, basic plumbing and heating and is free of open exterior holes or cracks, and infestation. One measure of safe and decent housing is the Housing Quality Standards (HQS) checklist developed by HUD (see appendix D). • Safe Housing: Prior to 1927 there were no building codes. With the evolution of homeowner's insurance and the fallout of multiple tragedies due to fire, many communities adopted Uniform Building Codes to create safety standards and regulate the building industry to ensure that such tragedies were averted. In the 1990's the ICC (International Code Council) codes were adopted in most states across the country in an effort to standardize the accepted safety of residential and commercial buildings nationwide. • Affordable Housing: Affordable housing refers to a household's ability to find housing within their financial means. The standard measure of affordability as defined by the U.S. Department of Housing and Urban Development (HUD) is when the cost of rent and utilities (gross rent) is less than 30% of household income. When gross rent levels exceed 30% of income, particularly by a large percentage, it places a significant burden on household finances. Householders who pay more than 30% of their income toward housing costs are called "Cost burdened". Householders who pay more than 50% of their income toward housing costs are called "severely cost burdened". When households are housing "cost burdened" their ability to pay for the other necessities of life are compromised. • "Needed housing": As used in ORS 197.307, "needed housing" means housing types determined to meet the need shown for housing within an urban growth boundary at particular price ranges and rent levels, including the following housing types: o Attached and detached single-family housing and multiple family housing for both owner and renter occupancy: o Government assisted housing, o Mobile home or manufactured dwelling parks as provided in ORS 197.475 to - 10- 197.490, o Manufactured homes on individual lots planned and zoned for single-family residential use that are in addition to lots within designated manufactured dwelling subdivisions. Growth Management and Housing Affordability, While state policy does not make a clear distinction between need and demand, it is instructive to make such a distinction based on housing policy: Housing Need is based on the broad mandate of Goal 10 that requires communities plan for housing that meets the needs of households at all income levels. Thus. Goal 10 implies that everyone has a housing need. However standards defined by public agencies that provide housing assistance (primarily }IUD), identify several need components: financial need, housing condition, crowding, and needs of special populations. Housing Market Demand is what households demonstrate they are willing to purchase or rent in the market place. Growth in population leads to a demand for housing units that is usually met primarily by the construction of new housing units by the private sector based on developer's best judgments about the types of housing that will be absorbed by the market. It is the role of cities under Goal 10 to adopt and implement policies that will encourage the provision of housing units that meet the needs of all residents. It is unlikely that the housing market in any area will provide housing to meet the needs of every household. However, it is incumbent upon the jurisdiction to endeavor to meet the basic housing needs of its citizenry. At the extreme there is homelessness: some people do not have any shelter at all. Close behind follows substandard housing (with health and safety problems), space problems (the structure is adequate but overcrowded), and economic and social problems (the structure is adequate in quality and size, but a household has to devote so much of its income to housing payments that other aspects of its quality of life suffer). Moreover, while some housing is government assisted housing, public agencies do not have the financial resources to meet but a small fraction ofthat need. New housing does not and is not likely to fully address all these needs because housing, developers. like any other business. typically try to maximize their profits. A common assumption concerning the impact of growth management policies is that by limiting the supply of developable land, such policies reduce the supply of housing. Basic economic theory suggests that if housing supply is low relative to demand, than the price for it will be high, reducing its affordability. However, this is a simplistic view. Housing prices are determined by a variety of complex factors, such as the price of land, the supply and types of existing housing, the demand for housing, the amount of residential choice in the region, and household mobility. Further in a community like Ashland, that is an attractive destination for both tourism and - ll - retirement, the "demand" for housing in the community is not isolated to the existing residential base. Rather national market forces are also factors in establishing local housing prices as the potential buyers of Ashland's housing stock come from many areas around the country. A report by the Brookings Institution Center on Urban and Metropolitan Policy entitled "The Link between Growth Management and Housing Affordability: The Academic Evidence," by Chris Nelson, Rolf Pendall, Gerritt Knapp and Casey Dawkins. The report, a comprehensive review of the academic literature on the link between growth management and housing affordability, found that: Market demand, not land constraints, is the primarv determinant of housing prices. Whether growth management programs are in place or not, the strength of the housing market is the single most important influence on housing prices. For example, Portland's growth in housing prices is more attributed to increase housing demand, increased employment and rising incomes than to its urban growth boundary. However, both traditional land use regulations and growth management policies can raise the price of housing, but they do so in different ways: • Traditional zoning and other planning and land use controls limit the supply and accessibility of affordable housing. thereby raising home prices by excluding lower-income households. Such policies, already widespread in the U.S., include requirements for low-density, rules on minimum housing size, or bans against attached or cluster homes. • Growth management policies improve the supply and location of affordable housing and accommodate other development needs, thereby increasing the desirability of the community and thus the price of housing. However, higher housing prices are open offset by lower transportation and energy costs and better access to jobs, services. and amenities. Since housing prices may increase in any land use environment, the decision for local governments is between good and bad regulation to improve housing choice. Traditional land use practices tend to zone for low-density, expensive homes that exclude lower- income households. Good growth management policies tend to incorporate policies that increase housino densities, mandate a mix of housing types. and promote regional fair share housing., The housing needs assessment contained in this report will be used by the City of Ashland Community Development Department and the Ashland Housing Commission to develop a set of strategies to address housing needs in Ashland. The overarching goal is to ensure the development ofa stable supply of housing for current and fixture residents of Ashland at all income levels. and household types. The Brookings Institute. 2002. - 12- More specifically, this report is intended to present an evaluation ofliousing trends in Ashland since the last detailed assessment was completed in 2002, and project current and future housing needs based on 2010 Census data, community questionnaires, and the Housing Needs Model created by former Oregon Housing and Community Services Economist Richard Bjeeland. Specifically, the report: • Describes socioeconomic characteristics and trends that affect housing; • Describes recent housing development trends; • Describes housing condition, tenure, and sales; • Assesses trends in jobs/housing location; • Quantifies housing needs by type and density, and compares it with household incomes and other factors. Housing Needs Analysis Organization Following the introduction are sections presenting population trends and forecasts, rental housing and ownership housing development trends, forecasts based on population growth, affordability needs, and employment trends with relation to population changes and housing needs. Next the analysis will detail the City's existing housing inventory, its current gaps and surpluses with future housing need projections based on the data from the Housing Needs Model and reconcile those projections with existing and proposed land inventory. Lastly the needs analysis will propose possible policy options for insuring that the City meets the housing and land use needs ofthe population well into the future. -17- Section II - Framework for the Needs Analysis-Community Context Oregon Housing and Community Services (OHCS) and the Department of Land Conservation and Development (DLCD) worked together to identify data and methodology gaps in implementing the State's housing goal. The result is the Oregon Housing Model, which specifically links income and age to housing need and affordability. The analysis uses this housing model as a starting point for projecting Ashland's housing needs to 2040. The analysis will examine Ashland's housing stock in conjunction with the 2011 Buildable Lands Inventory (BLI) and will then evaluate Ashland's housing need by type and price. This analysis has been compiled using the following data sources: • U.S. Census Data • Analysis of current market conditions • Community and property owner/manager questionnaire • The Housing Needs Model • Coordinated Population Projections from Jackson County • Population Data from Portland State University's Population Research Center • Employment data from the Oregon Employment Department • Housing and Development data from the City of Ashland and Jackson County • All other citations and resources are referenced in the footnotes and attached bibliography. Historic Population Trends Incorporated in 1874. Ashland had a population of just 300. Located on a stage line with established woolen and lumber mills, the economy of the city at that time was predominantly agricultural. By 1900 the City had grown to 3,000 residents. Ashland became the division point for the Southern Pacific's San Francisco-Portland rail line. The city experienced a population boom with the coming of the rail road. In 1899 a normal school was established. Over time the institution became known as Southern Oregon State College and eventually Southern Oregon University. The University has helped attract diverse populations to the community contributing to both the economic and cultural development of the community. Between 1900 and 1950 the population grew steadily to 7,739. Then with the emergence of the timber industry in the Rogue Valley, the city once again experienced a population boom almost doubling in size to 12,342, by 1970. The decade between 1970 and 1980 saw heavy migration to Oregon from other states. in that time the City's population increased by approximately 2.600 people. By the late 1970's the main economic support for the Ashland community came from the - l4- growth of the tourism industry spurred by the popularity of the Oregon Shakespeare Festival. Tile travel/tourism industry helped to establish a base for the hospitality industry, retail shops, and restaurants, as well as other cultural and artistic venues. By 1980, population growth tapered off as the City experienced the impacts of a statewide recession and the decline in the timber industry. The city long known for its cultural attractions and quality of life became an ideal spot for retirees. At the same time, mills were closing taking with them the living wage jobs that they provided to many area families. Despite the presence of Southern Oregon State College, the number of people aged 15-29 began to decrease. By the mid 1990's an alarming trend of elementary school closures swept the city as families moved away in search of living wage jobs and affordable housing in neighboring cities. Jackson County has a retirement population that exceeds the state average.' This is especially true of Ashland which has been an attractive area for retirees. A demographers report completed for the Ashland School District by Portland State University's Population Research Center noted that; "the largest population growth has been and will continue to be in age groups represented by the large baby boom cohort." in 2000 there was an influx of people in the 40-50 age range, and it is estimated that by 2020 the age will range from 60-70.4 This trend, illustrated in Table 1.1 below, is seen in retirement communities throughout the nation as the Baby Boomers, America's largest generation ages. This has had a disproportionately greater impact on areas like Ashland and the rest of Southern Oregon, as they are popular areas for retirement. It is expected that the retirement population will continue to grow, at the same rate or faster than it has in the past two decades. The impact of a significant retiree population has had a marked affect on several aspects of the Ashland community. The needs of a largely older, retired population have significantly affected the types of employment found in Ashland and surrounding areas. There has been a significant increase in the number of health care, medical, and support service jobs due to this trend. Similarly, the rise in retail and service sector jobs is associated with this trend. Unfortunately these ncNN, employment opportunities on average offer relatively low wages. While the increase of the retirement population has created a demand for low wage jobs, it has also driven up the cost of living, specifically with regard to real estate. Lastly, as mentioned above, the increase in retirement age residents and the high cost of living has created a situation wherebv families are lindimg housing and/or employment else-vNhcre. which is having an impact on local schools. Southern Ore-on Workforce [lousing Summit. Fehruary 2006, pg. 23. a Population Research Center. Portland State University. Ashland School District Population and F,nrollment Forecasts 2009-10 to 2018-19. (Demographer Report). December 2008. Pg. 7. - 15 - Table 2.1 Population Ashland Group5 1990 % 0f 2000 % of 2008 % of 2010 % of total total total total Under age 5 793 4.8% L802 4.1% 1,315 6.3% 1068 5.3% Age 5-9 923 4.7% 1,065 5.1% 1002 5% 0 0 0 Age 10-14 1,144 5.9% 951 4.6 /0 1206 6.0% - 5,391 33.2% Age 15-19 1,906 9.8% 1,613 7.8% 1655 8.2% Age 20-24 2,314 11.9% 2,251 10.8% 1885 9.4% Age 25-34 ° 2,174 11.1% 2,873 13.8% 2248 11.2% 5,126 31.5/0 Age 35-44 2,378 12.2% 2,096 10.1% 1918 9.5% Age 45-54 1,545 9.5% 3,249 16.6% 2,072 10.0% 2694 13.4% Age 55-59 551 3.3% 1,042 5.3% 1,822 8.8% 1806 9.0% Age 60-64 595 3.6% 694 3.6% 1,318 6.3% 1406 7.0% Age 65-74 1,279 7.8% 1,272 6.5% 1,671 - 8.0% 1562 7.8% Age 75-84 771 4.7% 1,143 5.9% 1,279 6.2% 1259 6.3% 85 and over j 184 1.1% 481 2.5% 456 2.2% 394 2.0% Total Population - 16,234 100% 19,522 100%- 20,782 100% -20,103 100% Total Population 3,380 20.8% 4632 23.8% 6546 31.6% 6,427 32% 55 and older Economic Conditions As noted in the narrative above, the City's economic development grew out of its location along major transportation routes, agricultural pursuits, and natural and cultural resources. As industries based on natural and agriculture resources waned, those farm and factory/mill jobs were replaced by predominantly service sector employment and health care driven by a shift in the population toward an older demographic (see table 1.2 above). Often these service sector jobs offer lower wages, fewer benefits, and less steady employment. "These factors contributed greatly to a decrease in living wage jobs within the city, prompting many young families to seek employment elsewhere and lowering the median income of the area significantly. The 2006- 2010 American Community Survey 5-year estimates the median household income for the City of Ashland at $40,140. This is lower than the median household income of Jackson County as a whole which is estimated to be $44,142, and significantly lower than the median income of the average American household, at $51,914. Similarly, the percentage of families and individual living below the poverty level is substantially greater in Ashland than in Jackson County. in the State of Oregon or in the rest of the Nation. See table 12 below for details. 5tJnited States. Bureau ofthe Census. 2000-2010 American Cnnmunit\ Surxc% i-Year I:stinuues and 1990, 2000 statistical abstract ofthe United States. - 16- Table 2.2 Percent in Poverty Household type Ashland Jackson State of United States County Oregon Percentage of families in 11.5% 9.9% 9.6% 10.1% poverty Percentage of Individuals 18.8% 14.0% 14.0% 13.8% in overt Source: 2000-2010.9nterican ('ormnrnrnitr S}i)•rt r i-rear L'slint(lres According to 2000 Census Data`' the highest proportion of low- and moderate-income households are found in the central areas of the city north of Siskiyou Blvd, primarily in census tracks 19.1. 19.2 and 18.4. This area has a larger proportion of the city's multi-family properties and is located near the University. Census data does not account for the student or seasonal population so no conclusions can be drawn about how the student population affects these census tracts. Census data does show however that these census tracts have the highest percentage of minority populations and can be considered a concentration of minority population in the city with 18, 15, and 15 percent minority populations in each census tract respectively. Income in Oregon has been below the national average for the last quarter of a Century. There are four basic reasons that income has been lower in Oregon and Jackson County than in the U.S. • Wages for similar jobs are lower; • The occupational mix of employment is weighted toward lower paying occupations; • A higher proportion of the population in Jackson County consists of seniors who receive only social security; • Due to a higher proportion of seniors in the population, there is a lower proportion of' k\ rn-king age residents. 2010 Census intbrmation at that le\el is nut yet a%ailahlc. Cite ol'Ashland. Planning 1)rpartment. Ixonomic OPPurtunities Anaksis 2007. - 17- Table 2.3 Household 2000-2010 Number of Percentage of Number of Percentage of households households households households (2000 2000 2010 2010 All Households 8,552 100% 9,339 100% Less than 10,000 1,173 13.7% 906 9.7% $10,000 to $14,999 918 10.7% 677 7.2% $15,000 to $24,999 1,300 15.2% 1,203 12.9% $25,000 to $34,999 1,090 12.7% 1,286 13.8% $35,000 to $49,999 1,141 13.3% 1,490 16.0% $50,000 to $74,999 1,309 15.3% 1,553 16.6% $75,000 to $99,999 789 9.2% 779 8.3% $100,000 to $149,999 545 6.4% 819 8.8% $150,000 to $199,999 166 1.9% 294 3.1% $200,000 or More 121 1.4% 332 3.6% Median Income $32,670 $40,140 .Sources: (%.3 ('eli.CILS BiUY'Llii 2000 «rrd 2OIO ('efisiLS dcila Emploj,ment Census counts estimate that 16,564 residents are 16 years old and older; of that number 10,322 are in the labor force. The unemployment rate in Ashland at the time of the American Community Survey 2006-2010 5-year estimates was 8.1 However, current Oregon Employment Department data shows the unemployment rates for Jackson County in March of 2012 were 10.6% down from 11.3% in March of 2011. The unemployment rate for the State of Oregon is slightly higher than that of the rest of the country; though significantly lower than that of Jackson County at 8.6%. Between 2000 and 2007 Jackson County added 10,246 jobs, twelve percent over the seven year period. Growth slowed in early 2008 and in October 2008 the country began to postyear to year job losses. By 2010, employment had fallen below its 2004 level, mainly due to the loss of 9.550 jobs between 2007 and 2010.8 In a recent press release, the Oregon Employment Department stated. "As the recovery from the Great Recession continues, unemployment rates continue their slow downward drift. Unlike Oregon overall, job growth has yet to resume in the Rogue Valley. But we were in a deep hole and it will take a number of years to gain back all of the jobs lost. As government sectors are continuing to grapple with revenue losses, these sectors are poised for continued job cuts."9 Though all sectors of the economy have experienced severe job losses and contraction, the public sector, construction and the hospitality industry, three major employers in the region and in Ashland have been hard hit by the recent economic downturn. It would be difficult to estimate the true impact that the economic downturn has had on the employment "Current Employment by Industry," Oregon Employment Department, OLMIS. Average annual non-farm employment in Jacskon County was 83.910 in 2007. 75,640 in 2008. and 74.360 in 2010. " Recent Trends: Region 8. GLn_ Mauer. Published ;April 1. 2012. Oregon Employment Department. Worksourcc yualityinfo.org -18- trends in the City ol'Ashland at this time. However. it is easy to surmise that there is a delicate balance to an economy based on health care, education, tourism, and recreation. Industries that rely on discretionary income often are the first to suffer in an economic downturn. Within the City of Ashland the hospitality industry, food service, retail trade, and entertainment top the list of industries in which a majority of area residents are employed. See table 1.4 below. Table 2.4 Employment Industry Ashland Medford Jackson State of County Oregon Education Services, Health Care, Social 27.9% 20.1% 21.1% 20.9% Assistance Arts, Entertainment, Recreation, 16.6% 11.7% 10.5% 9.2% Accommodation, and food service Retail Trade 11.9% 18.2% 16.3% 12.3% Professional, Scientific, Management, 13.1% 8.9% 9.1% 10.0% Administrative, waste management Manufacturing 4.9% 8.8% 8.8% 11.8% Construction 4.8% 6.1% 7.3% 7.0% Finance, Insurance, Real Estate, Rental 3.3% 6.9% 5.5% 6.4% and Leasing. .Source: Bureau ofthe Census. 2006-2010.4merican Communirr Survey 5-Fear Estimates. Table 2.4 shows that the predominant industries in Medford and Ashland are largely similar. but that the macro-economies of Jackson County and the State of Oregon as a whole show a more equitable distribution of employment throughout several diversified industries, though all employment within the state relies heavily on Education, Health Care, and Social Assistance. All of the predominant industries in the state show a particular vulnerability toward the housing and stock market's collapse and the ensuing economic downturn. This no doubt accounts for the State of Oregon having one of the highest unemployment rates in the country. Many Ashland Residents are employed outside of the City, and conversely many employees of Ashland businesses live outside of the Ashland Community. The 2006-2010 American Community Survey estimates that 68.6% of workers 16 years old and older commute an average of 16 minutes to get to their place of employment. The majority of those commuting to work drove alone, 6.2 percent carpooled, 1.3 percent took public transportation, and 18 percent used other means. The remaining 13.3 percent worked at home. This number has grown since 2000, when 65.2% of workers reported commuting to work. Workers who routinely commute to work put added strain on both the environment through the production of pollution and the demand for fossil fuels, and public infrastructure such as roadways and parking. The City of Ashland continues to experience issues with traffic congestion, pedestrian safety, and parking. The lack of housing which is affordable, accessible, and located near employment options continues to strain the city's resources and hamper its economic development. In the 2006 Workforce Housing Summit Workbook, Guy Tauer, Regional Economist with the Oregon Employment -19- Department stated "Many communities and businesses have realized that their future economic prosperity is dependent on being able to provide adequate and affordable housing for their workforce, and have taken a proactive approach to dealing with this impending crisis." 10 In 2011 the Ashland City Council Adopted an Economic Development strategy which was the result of an extensive public process guided by two sub-committees appointed by the Mayor and confirmed by the Council. The subcommittees consisted of representatives from the business community, economic professionals, regional and state economic development agencies and community stakeholders. The Economic Development strategy identities several strengths and weaknesses in the current economic environment. Namely, the City's primary economic industry which once consisted of mill/factory wort: has been replaced by tourism. The nature of tourism in the region is seasonal and the wages are traditionally low. Two factors stand out as having an adverse impact upon the potential for economic development in Ashland; housing affordability, particularly the lack of workforce housing and the limited land supply for industrial development. 'I The City adopted a Buildable Lands Inventory update in 2011 which has since determined that the current supply of developable commercial lands is greater than the land need projected by the FOA - (.Appendix Table ,44). Community Visions and Values In April 2009, the Ashland City Council began trork ore goals to guide the Cit , s tvork. fur the next 18 to 24 months. To guide their goal setting, the City Council first defined their values. Thep described, in positive terms, the things they use to make decisions about trhat is good.for the community and good,for the City ofAshlarril as an organisation. As members of the Ashland City Council, We venire: • Participatory government. 'VV C value government that is open, accessible, honest and democratic. We value responsive and visionary leadership by elected officials. We have professional, high quality staff. We seek to be efficient and effective with public funds. Our citizens are engaged with their local government as volunteers and in critical community decisions. • Natural Environment. Our town is part of nature's community. We seek to enhance the quality of water, land, air, and wildlife. We actively support energy conservation and alternative energy generation. Our parks and open spaces provide habitat for plants and animals and access to nature for our residents. • Responsible Land Use. We value sustainable use of land, water, energy, and public services; our architectural heritage; and buildings with quality design and construction. 10 Southern Oregon Workforce housing Summit. Fcbruary 2006. Economic Opportunity Analysis for the Cite of Ashland, Eco-northwest. 2007. 12 Cite ol'Ashland, PkinninR Department. Ruildahlc I.;inds Inenton 2001. pe 11. -20- We value a vibrant downtown, Lithia Park and strong neighborhoods. We support transit, bicycling, and walking throughout our land use plans. • Free Expression. We invite the exchange of diverse ideas. We value the social, economic, and creative contributions of the arts, cultural activities. and community events. • Diversity. We are a welcoming community that invites and respects the individuality and contributions of all people. • Economy. We value an economy that creates wealth for all. We strive to nurture homegrown business and to connect local consumers to local products. Our economy supports arts and culture, connects to Southern Oregon University, and supports high quality public services. We value a business community in tune with the environment and that provides good wages and economic choices for individuals and families. • Distinctiveness. Ashland is a unique part of the Rogue Valley. We depend on partnerships in our community and region to meet many of the needs of our residents. At the same time, we value our ability to develop innovative approaches and to chart our own course. • Education. We value lifelong education. We value the social, economic, cultural, and civic contributions of strong, integrated educational institutions. • Basic Needs. We believe each person needs public safety, water, sanitation, adequate food, clothing, housing, transportation, and health care. • Community. We believe Ashland is a unique and special place. Residents participate in community life and feel a sense of belonging. Community gardens, neighborhoods, schools, volunteerism. and events bring our residents together. Residents look out for each other and support those in need. What objectives do housing; policiev try to achieve? The development of new housing units is primarily driven by the private market and are built and owned privately. While land use powers of local governments can impact the development of certain housing types, the primary role of local governments has been on regulation to promote public health and safety and to provide for the installation of infrastructure. Housing policies work to address housing in four categories: • CommunilyLife. From a community perspective, housing policy is intended to provide and maintain safe, sanitary and satisfactory housing with efficiently and economically organized community facilities to service it. In other words, housing should be coordinated with other community and public services. Although local policies do not always articulate this, they are implicit in most local government operations. Comprehensive plans, zoning, subdivision ordinances, building codes, and capital -21 - improvement programs are techniques most cities use to manage housing an its development. Local public facilities such as schools, fire and police stations, parks, and roads are usually designed and coordinated to meet demands created by housing development. • Social and equity concerns. The key objective of social goals is to reduce or eliminate housing inadequacies affecting the poor, those unable to find suitable housing, and those discriminated against. In other words, communities have an obligation to provide safe, satisfactory housing opportunities to all households, at costs they can afford. Without regard to income, race, religion, national origin, family structure, or disability. • Design and environmental quality. The location and design of housing affect the natural environment, residents' quality of life, and the nature of community life. The objectives of policies that address design and environmental quality include neighborhood and housing designs that: meet household needs, maintain quality of life, provide efficient use of land and resources, reduce environmental impacts, and allow for the establishment of social and civic life and institutions. Most communities address these issues though local building codes, comprehensive land use plans, and development codes. • Stability ofproduction. Housing is a factor in every community"s economy. The cyclical nature of housing markets, however, creates uncertainties for investment, labor, and builders. The International City Manager's Association suggests that local government policies should address this issue; most do not. Moreover. external factors (e.g. interest rates, cost building materials, etc.) that bear upon local housing markets tend to undermine the effectiveness of such policies. Section III - Housing Trends & Existing Conditions Analysis of historical development trends in housing type, mix. and density provides insights into how the local housing market is working and is likely to work in the fixture. The critical elements of such an analysis are • Data from a long enough time period to avoid giving anomalies undue weight; • Clearly identified and differentiated types of housing to address (all needed housing types); and • Evaluation of permit/subdivision data to calculate the actual mix, average actual gross density, and average actual net density of all housing types. In completing its analysis, the City reviewed the housing mix and density of development that occurred from 2000 through 2011 (the 2002 HNA reviewed that data through 2001). This long term analysis provides greater insight into the functioning of the local housing market than would a typical five year period, especially given fluctuations caused by the national housing market collapse following the subprime mortgage crisis that began in 2008. Table 3.1 shows the actual type distribution of new housing units developed between 2000 and 2011. Table 3.1 Housing mix • Issued 2000-2011 Housing Type Buildings Units Percent of Units Single-Family 1159 1159 80.3% Two-Family 19 38 2.6% Three and Four-Family 14 45 3.1% Five or More 30 202 13.9% Total 1222 1444 100% .Source: U.S. Census Bureau dcua 2000 and 20/0 According to Census Data, Ashland added 1,444 new dwelling units between 2000 and 2011. This is a 16% increase in the total number of dwellings over 10 years. For comparison, the rate of unit growth in the previous ten year period was 26%. Table 3.1 shows single family development significantly outpacing multi-family development - a trend also identified in both the 2002 HNA and the 2007 RNA. Residential Construction Trends Housing development trends identified in the 2002 I-INA have persisted. Namely. single family housing development has continued to outstrip the development of multi-family housing by a significant margin. The need for multi-family ]lousing continues to "row, while the development - 23 - { ofmulti-family housing continues to lad(. Rental units in price ranges affordable to those with the lowest incomes are in the most demand. Lastly, ownership housing affordable to those making median income to 120% of Area Median Income in Ashland is still out of reach despite recent gains. Single Family In 2000 the estimate of one-unit detached, and one-unit attached dwelling units represented 65.3% of the housing stock. The 2008-2010 ACS estimates that one-unit attached and detached units make up 71.9% of the City's housing stock. This is an increase of 6.6% over the past decade. There has been and continues to be a clear trend of the development of single-family housing types over all other housing types. Multi family The 2008-2010 ACS estimates that Ashland's housing stock is made up primarily of single family units, with only 29.4% multi-family units. This disparity in the development of single family versus multi-family development is shown in Table 3.1 above. Condominium Ownership The City allows conversion of existing apartments to ownership units only in cases where 25% of the units converted are affordable and where the current residents have first right of refusal. The Affordable Housing Program parameters under resolution 2006-13 establish that rental apartments converted into condominiums are to be affordable at the 80% income level for a period of not less than 30 years. Since 2003, ninety-two units have converted from rental units to condominium (ownership) units. Twenty-eight of those units which have converted have been deed restricted as affordable. In that same period sixty-three new Condominium units have been developed. Since 2008 no new condominium units have been built or converted. Retirement and assisted living The City of Ashland has three large retirement/assisted living facilities and one nursing home. Altogether these facilities comprise 293 dwelling units and maintain an average occupancy rate of approximately 82%. These facilities were developed primarily in the 1980's and early 1990's. No new facilities have been developed in the last decade. Group housing The City currently has it total of five group homes for youth and special needs populations able to accommodate up to 28 individuals. The University has four group housing complexes on campus offering a total of 1070 beds. The university is currently building a new residence hall to house over 800 people within two separate buildings. I-Iowever, these new beds will only replace existing beds currently available in other complexes whose space will be converted to other uses. -24- Southern Oregon University (SOU) housing and enrollment As mentioned in the section on group housing above. SOU maintains four group housing complexes with the current capacity to house 1,070 individuals. SOU also maintains two large scale multi-family housing developments, Old Mill Village Phases I and II. These two rental complexes are comprised of 130 and 35 units respectively and offer a range of 1 bedroom units to 4 bedroom units with a base capacity to house approximately 384 individuals. SOU also maintains approximately 28 single family houses varying in size from studio to 4-bedroom. Taken altogether SOU has the ability to house approximately 1.490-1.520 individuals. In fall of 2012, SOU had a total enrollment of 6,336 students (exclusive of dual high school credit students). Of that total 912 student resided in dormitories, 125 students resided in family Student housing (this total does not include family members who are not currently enrolled students who also reside in the family housing complexes), and 2.376 students resided in non-college owned housing within the City of Ashland. The remaining 2,923 students resided outside of Ashland. Table 3.2 below provides a breakdown of the areas where the majority of SOU students reside. Table 3.2 Southern Oregon University Fall 2012 Enrolled Student Population by Mailing Address Place of Residence* Number of Students Percentage SOU Dormitories 912 14% SOU Family HOUSin 125 2% Ashland 2,376 38% Medford 843 13% Areas outside of Medford and Ashland 2,080 33% Total 6336 100% *Place of residence is determined by mailing address (Source-SOU Institutional Research Center Fall 2012) _25_ Table 3.3 2006-2010 ACS 5-Year Estimates Housing Units by Type Units In Structure 2000 2000% 2010 2010% % Change Estimate Estimate Total Housing Units 9,071 100% 10,230 100% 12.8% 1-Unit, detached 5,375 59.3% 6,503 63.6% 21% 1-Unit, attached 544 6.0% 853 8.3% 56.8% 2 Units 458 5.0% 526 5.1% 14.8% 3-4 Units 641 7.1% 530 5.2% -17.3% 5-9 Units 609 6.7% 513 5.0% -15.8% 10-19 Units 380 4.2% 405 7.3% 6.6% 20 or More Units 821 9.1% 746 7.3% -9.1% Mobile Home 225 2.5% 154 1.5% -31.6% Table 3.4 Homeowners hi p/Rental Rate Comparison % Renters 2000 % Owners 2000 % Renters 2010 % Owners 2010 Ashland 47.7% 52.3% 49% 51% Jackson Count 33.5% 66.5% 36.7% 63.3% State of Oregon 35.7% 64.3% 36.2% 63.8% t I.S. Census BUrcau Income and affordability of Housinp- Housing costs are influenced by several factors, including lot size, land cost, availability of materials, labor, interest rates, and supply and demand. I lousing choice is often driven by a household's income. Similarly, income is a key indicator of a households' ability to find and retain safe, decent housing. Income is also the main determinant in most householders' housing choices. A household which is cost burdened by a rent or mortgage payment (an amount which requires a 30% or more of a household's income) is less stable and more susceptible to losing that housing should some disruption to employment, health crisis or other unexpected circumstance arise. These vulnerable households can then fall into homelessness, or require state or federal assistance to become stable again. Ability of a household to afford monthly rent or mortgage costs will, for the most part, also be the determining factor in where a householder chooses to live. Often the household will forego other housing priorities, such as square footage, bedroom size, household amenities, commute time to work, and other quality of life choices due to housing affordability. Renter households are two times more likely to be cost burdened than owner households. Approximately 2.737 or 63% of renter households experience cost burden, while only 1,352 or 48% of homeowners experience cost burden from housing costs. This can be attributed in part to a higher percentage of low-income rental households than owner households. In 2000, 37% of Ownership households paid less than 15% of their incomes toward mortgage costs, while a full -26- 45% of renters paid more than 35% of their incomes toward hoUSitlg costs. 13 In the ensuing decade the rapid rise in housing values has substantially increased the costs of homeownership. but even with that increase homeowners as a group still tend to experience less cost burden than renters. As seen in Section 11- Framework for Housing Needs-Community Context, the City of Ashland has a higher percentage of families and individuals living below the poverty level than Jackson County or the State of Oregon as a whole. The City also has a higher proportion of lower paying service sector jobs and a higher percentage of seniors in the population than in other parts of the County or State. These factors contribute to the large percentage of households experiencing cost burden. According to the State Housing and Community Services Department. housing cost in 1990 was increasing at a rate of 9% while household income increased at an annual rate of 2%. Between 2000 and 2010 median mortgage costs for homeowners in Ashland went up by 53%. Rental costs for Ashland residents increased 47% in that same period. While median Household income increased by only 22.9%. 14 This long term trend of housing costs outstripping incomes has exacerbated the demand for affordable housing throughout the state. The increasing need for affordable housing units has taxed the traditional methods of finding affordable housing and cannot be sustained into the future should the trend continue. Rental Units 2008-2010 ACS estimates that 48.2% of all occupied housing units, or 4.498, are renter occupied units. Fair Market rents for Jackson County as established by the Department of I lousing and Urban Development mandate the maximum amount that projects developed using Low Income Housing Tax Credits (LiHTC) or Tax-Exempt bonds are allowed to charge. These amounts correspond to the HUD income guidelines for that area. In 2012 the Fair Market rent for a two bedroom unit was $807 a month. In order for an individual to afford a rental unit at that rate. and not experience cost burden, they would need to earn $15.13 an hour. Currently the 2008-2010 ACS estimates that the median income for a worker in Ashland is $19.042 per year or $9.92 an hour. Currently a HUD regulated two bedroom unit in Ashland is mandated to rent for $590 a month. In 2012 the City of Ashland posted a questionnaire on the City's website that asked specific housing-related questions. some of which corresponded to questions posed in the 2007 Rental Needs Analysis' random call survey conducted by Riley Research. The City also sent out a business reply mailer to a selected list of rental property owners and property management companies compiled from two sources: the City's business license registry (which included all businesses who rent six or more units). and the list of rental properties developed by SOU 2006-2010 American communitN "urN eN 5-Year Estimates and 2000 Census. -27- planning students in 2007. The information gathered from the community questionnaire and the direct mailing is cited throughout this document. One question asked respondents to rate rental housing options in three areas on a scale of one to ten. Of the 110 respondents that answered the question, the majority believed that the availability of rental options, the quality of rentals, and rental pricing were all less than satisfactory. While the majority of the respondents felt that rent availability and quality were somewhat satisfactory, the overwhelming majority of respondents felt that rental pricing was unsatisfictorN. Chart 3.1 Satisfaction with Rental Housing Options 10 8 G 4 2 0 Availability of Quality of available Pricing of available Options options options Avgerage ranking on a scale of 1-10 { 1 is "not at all satisfied" and 10 is "completely satisfied" ) E.rtremelp-Low Income (Less than 30'% of'Area Median Income): As shown in Chart 3.2 below. the findings of the Housing Needs Model for the City of Ashland using 2010 Census Data, the City of Ashland has a shortage of rental units affordable to those residents with the lowest incomes, those making less than $10,000 a year. According to the Housing Needs Analysis, only 3.05% of the City "s rental housing stock (approximately 152 units) meets the needs of this population. The City's current need for rental housing in a price range affordable to those with the lowest incomes is estimated to be 955 units. Approximately 803 more units would be required to meet the needs of these very low income households. Housing Units affordable to these populations, which include predominantly households under the age of 35 and to a lesser extent over the age of 55, could be offset by Housing Choice (formerly section 8) Vouchers. The -28- 729 households under the age of 35 that report having an income of under $10,000 a year may be due in part to the presence of Southern Oregon University, which includes a high percentage of non-traditional students. Currently there are approximately 100 households receiving a rental subsidy voucher from the Department of Housing and Urban Development to offset housing costs. There are 142 project-based subsidized rental units located within the City of Ashland. Of these units, 73 are set to expire within the next 5 years, and the waiting list for portable vouchers through the Housing Authority of Jackson County is approximately three to 'Four years long. Households making 30% ofthe AMI or less make up approximately 12 2'io of all Ashland households. Low-Income (Between 30'% and 50% gj'Area Median Income): The current supply of housing units affordable to low-income populations represents approximately 5.68% of the City's rental housing stock, or 283 units. The current estimated need for housing affordable to this income group is 1,052 units; leaving a gap of approximately 769 units. The proportion of households represented by this income group is fairly evenly dispersed through all age groups and represents 11.3% of all households. Moderate Income (Between 50% and 80% oj'Area Aledian Income): The current supply of' housing units affordable to moderate income populations represents approximately 49.3% of the City's rental housing stock, or 2,454 units. This is by far the majority of the City's rental housing stock. However, at the low end of the income scale (50% of Area Median Income) nearly half of the units that fall in this rental category would not be affordable. The need for rental units at this price point is estimated to be 1,420 units, leaving 1,034 rental units affordable to people making between 50 and 80 percent of the AMI. Median Income and above (100% and above): The current supply of housing units affordable to the population making above 80% of AMI represents approximately 42% of all rental housing units. At 2,088 units, rental housing units in this price range (from approximately $898 to over $1,133 a month) are in the least demand, with current need estimated to be approximately 840 households able to afford units in this price range, creating a surplus of 1.248 units. The surplus in units may be due to the fact that households that are able to afford a higher rent may be opting for a unit below that which that household may be able to afford, thereby exacerbating the deficit of rentals at the lo\\er end ofthe income scale. -29- Chart 3.2 Current Housing Balance-Rental Units by cost range 2000 1500 1000 500 - - 0 - 0-$1 $195-$ $423-$655 $656-$897 $898-$1132 $1133+ -500 -1000 ■ Housing Stock ■ Current Need ■ Current Surplus Ownership Units EVremelj,-Low Income (Less than 30% of Area Median Income): An individual making 30% of AMI or $12,300 a year according to the 2012 HUD income guidelines would be able to afford to purchase a housing unit for a maximum of $51,1 15. There is very little availability of housing at this income level. The private market is unable to provide ownership units at purchase prices this low. Rogue Valley Habitat for Humanity is able to provide ownership units for a few extremely low-income households. Sonic Mobile zinc! Manuf►ctured home units in a park also might be within this price range. Low-Income (Between 30% and 50% of Area Median Income): The I lousing Nceds Analysis estimates that there are 150 existing units available for $72,300 and below and 401 units needed at this level. This leaves a gap of 251 ownership units affordable to households earning 30% to 50% of the AMI. Moderate Income (Between 50% and 80% oj'Area Median Income): The number of ownership units available that are affordable to people making 50% to 80% of AMI is estimated to be approximately 260. The estimated need for ownership units costing between $72,000 and $185,300 is 2,070 units. The units at the high end of this price scale would be unaffordable to those earning below 50% of AMI. -10- Median Income: There is a limited supply of ownership units affordable to those earning median income. According to the National Association of Home Builders Affordable Housing Price Calculators, a household making the median income for the Medford/Ashland area Could afford to purchase a house for $163,126. The calculator assumes a 20% down payment, current interest rates on a 30 year fixed loan assuming a 90% loan to value ratio. The Housing Needs Model estimates that there are approximately 410 units available between $185,300 and below. While many households earning median income could qualify for a loan to purchase a house at the lower end of the scale, those same households would be cost burdened if they had to pay a mortgage on a housing unit of over $163.000. Over 78% ofthe City's ownership housing stock consists of units which cost $279300 and above, while the demand for housing units in that price range is only about 1,750 households. Chart 3.3 below shows that the supply of high cost housing exceeds the demand for such housing by approximately 2,255 units. The remaining 22% of the housing stock available for sale at less than $279.300 is in such demand that there is a housing gap of 3,147 units. The highest demand is for those units affordable to households making the 100% AMI to 120% AMI, at approximately 1,332 households. Chart 3.3 Current Housing Balance-Ownership Units 5000 4000 3000 2000 - 1000 0 72.3K 0" 110.1 K<1 K 185.3K<2 K -1000 ■ Housing Stock ■ Current Need 0 Current Surplus rs National Association of 'l lomebuilders aftbrdahilit% calculator: htlp:,,/,~~ww~~.nuhh.org!acnrric.aspx'?~cnrricCuntcntl ll=7R - 31 - While it is clear that it is not profitable for the private market to build housing targeting those households at the 50% of AMI and below, housing units targeting 50% to 100% AMI, while slightly more feasible, still requires some incentive and subsidy to make the development feasible. Further, these units will have to compete with units ofa similar price in the nearby markets of Talent. Phoenix, and Medford, which, while requiring a longer commute time, can often offer more house for the same or even a lower price. At the same time, the only entities that can provide ownership housing targeting moderate and low-income households are affordable housing providers. which utilize federal, state and local tax credit and subsidy programs in order to develop such units. These entities are few in a small region like Southern Oregon and must compete with the rest of the state for funding. Capacity building for these affordable housing entities can be difficult as affordable housing financing can be a complex and highly competitive process. and more so in a time ol'shrinking federal and state funding for such programs. Buildable land suppIv Land supply affects land price and by extension, housing price. Statewide Planning Goal 10. and ORS 197.296, requires communities to maintain a 20-year supply of buildable residential land within their Urban Growth Boundaries. The City of Ashland's supply of buildable lands was recently quantified in the 2011 Buildable Lands inventor` adopted in November 2011. The land availability component of a Buildable Lands Inventory needs to be compared to the expected demand for various housing types to ensure minimum 20 year availability. This Housing Needs Analysis provides a detailed assessment of precisely what mix of housing types will be needed through 2040 (see Table 7.1). Using this projected housing type need, and correlating it to the land availability in each Comprehensive Plan designation, we can ascertain whether sufficient land will be available over the next 20 years or longer. Table 3.5 Needed Units per Housing G:ap F,nalysr_ 1557 1 759 3316 through 2040 Deficit by 2040 -88 -375 -463 Annual units needed through 2040 55.6 62.8 118.4 Total Year Supply 26.4 22.0 24.1 -32- The City estimates vacant buildable lands in all designations that allow residential uses have a total capacity of 2853 dwelling units within the urban growth boundary. It is important to note that the inventory of available land includes a significant number of small lots within the City limits that can only accommodate 2-4 additional units given their size. The need for larger developments of multifamily housing (5+ units) requires larger undeveloped properties of the type that are typically located outside the City Limits, yet within the Urban Growth Boundary. The estimate of dwelling unit capacity includes a 50% reduction for residential on Commercial and Employment lands as such units are not required and it is unlikely that all future commercial development will incorporate a residential component. As demonstrated in Table 3.5 this capacity would accommodate approximately 22 years of multi-family housing growth, and 26.4 years of single family development. Distribution of these potential housing units on available buildable lands based on comprehensive plan designation is more frilly detailed below. Table 3.6 Needed Future Comprehensive Plan Designation Net Buildable Existing Dwelling Dwelling Units by Type Comprehensive Plan Acres Unit Capacity distributed into existing capacity (2011 BLI) SFR Multi-family Airport Per Airport Master Plan 0 0 0 Commercial 15.8 252 0 252 Croman Mill 62.8 340 0 340 Downtown 2 53 0 53 Employment 105.1 221 0 221 HC 1.4 15 0 15 HDR 8.9 162 0 162 Industrial 12.1 0 0 0 LDR 38.1 70 70 0 MFR 30.8 323 0 323 NM 17.7 118 100 18 SFR 214 875 875 0 SFRR 48 103 103 0 SOU 19.5 SOU Master Plan 0 0 Suburban R 42.3 311 311 0 Woodland 4.3 10 10 0 Totals 622.8 2853 1469 1384 Note: t:_xpecied Dire!(ing 1 brks on C OFIIT11CPCGtI and f.nrhlcn rnent 1,:111d" hate heal reJuccd h.~ 50",, from \%hat \Nuuld he hennilted as such units are not required. -33 - Section IV - Ashland's Housing Inventory Single Familv and Manufactured housing, detached 2010 ACS estimates that there are 10,203 total housing units within the City of Ashland. Of that total 6.710 are 1 unit detached, and 46 are Mobile home units on individual lots. Between 1990 and 2010, there has been a marked increase in the supply of attached and detached single family units. Between 1990 and 2000, the number of single family detached units increased by 52%; between 2000 and 2010 that increase was 21%. Meanwhile. the number of mobile home units in the City decreased by 1.5%. (See Table 3.3 on page 24). Manufactured housing units in parks Between 1990 and 2000 the number of mobile home units in the City increased by 18%. Between 2000 and 2010 the number of mobile home units decreased by 9% for an overall 20 year decrease of 1.9%. There are currently two mobile home parks within the City. A park formerly located across the street from "Upper Pines", known as "Lower Pines" was sold, and the purchasers redeveloped the land into a mixed use commercial development. The loss of this park may account for the decrease in units between 2000 and 2010. Multiple or single-family units, attached; 2010 ACS estimates that there are 810 1- unit attached. 424 duplexes (2-units). and 2,194 units of three or more, down from 2,451 just ten years earlier. Altogether multi-family and single family attached housing types make up 38.2% of the total housing stock. Another trend which is highlighted in Table 3.3 on page 24 has been the decrease of medium and large scale multi- family developments. The number of multi-family units consisting of more than 4 housing units decreased significantly between 1990 and 2005. Complexes consisting of between 5 and 19 units saw a decrease of 2% between 1990 and 2000. Similarly, complexes consisting of more than 20 units saw a 9.1 % decrease between 2000 and 2010. This is due in part to the conversion of multi-family rental properties to saleable condominium units, caused by the high land values of the past decade within the City of Ashland. In 2006, the City passed a condominium conversion ordinance in an effort to mitigate the loss of existing affordable and market rate rental properties which were not being replaced by the market. In 2007, a comprehensive inventory of multi-family housing units was completed by Southern Oregon University. This inventory also took into account additional uses of properties located in these multi-family zoned areas. This inventory allowed the City to see patterns of development within these areas. One pattern that stood out from the data collected was that single family units on single parcels were the most common housing type found in these multi-family zones. Single family homes comprised one third of all housing units in these zones. This highlights another predominant problem with the development of multi-family properties: The majority of the -34- property zoned for multi-family, higher density development does not build out as such, contributing to a lack of more affordable housing types. Government assisted housing (below market-rate /rousing) Most people think of government assisted housing as public housing or subsidized housing through the Housing Choice Voucher program (formerly known as the Section-8 program). However, developers of affordable housing can also take advantage of other government programs. Many large scale developments utilize a combination of funding sources. Detailed below are the prevalent government assisted housing programs: Loch-income Housing Tav Credit Program (LIHT0: The Federal Lm -Income Housing Tax Credit Program assists both for-profit and non-profit housing developers in financing affordable housing projects for low-income families and individuals. Same local developers of affordable housing are eligible to apply to Oregon }-lousing and Community Services, which allocates fiends based on a statewide Consolidated Plan. The City of Ashland has two projects totaling 66 units developed usino Lil ITCs and expects to see another six-unit tax credit project developed in the near future. Public Horrsi~ig Assi.~7crrlce-.Secyiu~7 8 llousin Choice 1,oucheI' Program: The HoLlSing Authority of Jackson County is the local provider of HUD funded housing programs such as the Housing Choice Voucher program and the Public Housing program. Currently the Housing Authority receives approximately 1,390 Housing Choice Vouchers per year for all of Jackson County. Just over 100 of those vouchers are provided to City of Ashland residents. There are no public housing units in Jackson County. Home Pro.zram: The City of Ashland is not currently a participating.jurisdiction for HUD's HOME funds. Some local developers of affordable housing are eligible to apply to Oregon Housing and Community Services. which allocates funds based on a statewide Consolidated Plan. U,' !D A Rural De re lupine w Ail ual .Selfllclh Home Loan.ti !SHOP: The Department of' Agriculture's Rural Development offers several loan options to assist low to moderate income households attain homeownership. In recent years, the City of Ashland has awarded Rogue Valley Community Development Corporation CDBG funds to help leverage funds and initiate two Self help homeownership projects comprising 30 units that utilized funds from Rural Development programs. Rogue Valley Community Development Corporation has utilized Self Help Ownership Program (SHOP) grant funds awarded to Community Frameworks from HUD on these projects. Similarly USDA Rural Development also offers low-interest loans and grants to assist low to moderate income homeowners complete health and safety repairs on their homes. The City also contains three large scale multi-family projects financed with Rural Development loan funds. Altogether these units account for 153 units of below market rate and subsidized housing within the City. -35- Community Development Block Grcrnt Ftn (.1s (CDBG): The City of Ashland is a Participating Jurisdiction for the Community Development Block grant program. It receives an annual allocation of funding from the Department of Housing and Urban Development to undertake a variety of activities. including the provision of affordable housing. The City has often prioritized the use of CDBG funding in support of affordable housing projects. Table 4.1 Government Assisted Rental Units Property Name Property Assistance Number of Number of Income Contract Type Type Units Assisted Limit Expiration Date Units Ashley Garden Family RD 40 20 60% RD Ashley Senior Senior RD 62 41 60% RD Stratford Family Section 8 51 17 100% RD Chief T ee Family Section 8 32 29 30% 7/31/09 Donald E. Lewis Senior Section 8 40 40 30% 5/11/10 Star Thistle Disabled Section 8 12 12 50% 9130/09 Sun Village Family Section 8 12 12 30% 1/20/13 Takilma Village Family Section 8 14 14 60% 8/31/09 Johnston Manor Senior Section 8 34 34 60% 12/26/08 TOTAL 297 219 Seasonal Units The City of Ashland has a thriving tourism industry. Consequently many housing units in the City are utilized on a seasonal rather than year round basis. The City does keep a database of businesses registered as travelers accommodations located within the City. But it is difficult to discern the actual number of seasonal and vacation rental units in the City, due to the proliferation of unregistered units, however in May of 2012. a total of seventy five businesses were registered with the city as having traveler's accommodation or vacation rental units. These units come in many forms, from hostels, motels, and hotels, to individual cottage units and bed and breakfasts. Many of these housing units represent units not meant for year round occupancy. They are included in the housing total shown by the census and counted as vacant units. Between 2000 and 2010 the number of these units has doubled.They now represent 3.8% of the City's housing stock. These units will not contribute to the overall housing inventory available to meet housing need quantified in this analysis. Owner Occupied units The owners of the ChiefTyee complex opted out of their I WD contract in 2009. This romplr~ is no lon_cr mandated to be atTordable although it was initially des eloped using I IUD funding. 1' "Yhe owners of the Takilma Village complex opted out of their HUD contract in 2010. is The owners of the Johnston Manor complex opted out of their H1!1) contact in 2009. This complex is no longer mandated to he alliOrdahle althoUL11 it \\as initially kIc\ clOpcd using I IUD fundinz. -36- Owner occupied units represent 51.6% of all occupied dwelling units. "['here are 4,856 owner- occupied dwelling units in Ashland occupied by approximately 10.210 individuals. The average household size for owner-occupied dwelling units is 2.10 people per unit. Rental Units Renter occupied units represent 48.4% of all occupied dwelling units. There are 4553 renter- occupied dwelling units in Ashland occupied by approximately 8,907 individuals. The average household size for renter-occupied dwelling, units is 1.96 people per unit, slightly less than the household size of the average owner occupied unit. Housing Age and Condition The majority of housing in Ashland, 59.6%, was built prior to 1979; with 16.6% or 1,695 units being built prior to 1939. Despite the relative age of much of the housing stock, there are very few units which lack basic amenities. Only 1.9% of all occupied housing units lacked complete plumbing or kitchen facilities. 47.6% of all housing units were built between 1970 and 2000, with the most new building activity taking place between 1990 and 2000. Though there are many other factors that contribute to housing being considered to be substandard, those factors are not accounted for in the Census information. There is little other comprehensive data to provide an accurate picture of substandard housing conditions within the City. Lend Based Paint Hd_ui-ds: The age of the housing unit is a leading indicator of the presence of lead -hazard, along with building maintenance. Lead was banned from residential paint in 1978. Of the 103 19 total housing units in the City of Ashland 68% (7,000) were built prior to 1980. The 1999 national survey found that 67% of housing built before 1940 had significant LBP hazards. This declined to 51 % of houses built between 1940 and 1959, 10% of houses built between 1960 and 1977 and just I % after that.20 Based on those estimates, over 3,300 homes pose potential lead-based paint hazards in Ashland. Vacancv Rates Between 2000 and 2010 vacancy rates for rental and ownership units remained relatively unchanged. At 4.2% and 1.0% respectively, rental and ownership vacancy rates in 2010 are relatively low. Survey results, census data, and American Community Survey (ACS) estimates show that the vacancy rates in Ashland typically range between 3% and 4%. A recent survey/questionnaire conducted in 2012 by the City showed the current rental vacancy rate to be 1 This rate is below that of the overall rate for Jackson County at 3% and for the state of Oregon as a whole at 5.6%. The overall impact ofa low vacancy rate is that there are fewer options in the rental market when people are looking for a unit to rent. United States. Bureau of the Census. 2006-2008 American Communitv Survev 3-fear Estimates. 20 Clickner. R. et al. (2001) National Survev of lead and Allergens in Housing. Final Report. Volume 1: Analysis of Lead I Iazards. Report Office of Lead i [Lizard Control. LIS Department of )-lousing And Urban Development. -37- Housinv Value Housing value is a kev indicator of housing affordability. The housing market has been extremely volatile in the decade since the last Housing Needs Analysis was completed. However, despite a housing boom and the ensuing bust that played out in the intervening decade, the findings of this recent effort are much the same as they were in 2002. In the decade since the last I-INA was completed, housing costs within the City of Ashland grew at a rate much faster than that of Jackson County, and the State of Oregon as a whole. The 2002 HNA reported an average home price of $277,742, which was an increase of 50% from 1998 (MLS reported and average sale price of $187,258 at that time). At the height of the housing boom in 2007 the median price for an existing home in Ashland was $438.750; by April of2012 the median price for an existing home was $282,500, a reduction of 36% in a five year period. 21 So while home prices rose precipitously, they fell equally so, ending with the City's housing price at a 14 year gain of 50.9%. Owner Occupied unit values: According to the 2006-2010 ACS 5-year estimates, the median home price for Ashland is $408,400 while the individual median income for workers is $19,042. In order to afford a home in Ashland at the median price, a household would have to earn $75,000 a year, which is well above median household income. Median family and median workers' incomes are at $40,140, $52,940, and $19,042 respectively. According to the Roy Wright appraisal service, the average sales price in 2011 was $285.000, while this number is substantially lower than the median compiled by the census in 2010, it is still out of reach for households earning the median income in Ashland. The 2012 median household income for a family of four in the Medford/Ashland Metropolitan Statistical Area is $58,500. In order to afford a home in Ashland at the 2011 median price a household would have to earn $75.000 a year. Only 23.8% of the population reports having an income over $75,000 a year, while 50% of the ownership housing stock is targeted to this group. Conversely for a home to be affordable to a median household with an income of $58,500, a house would have to cost no more than $220,000. At this price there are 3 I units out of 212 currently listed as available for sale within Ashland. Residential Hume Sales: Recent data from the Southern Oregon Multiple Listing Service (SOMLS) show that the median residential sale price ofa home in Ashland has dropped considerably since the peak of the housing boom in 2007 by 36.2%, from a high of $438,750 to a low in 2012 of $282.500. The 2010 Census estimates the median home price at $408,400, which reflects the market when census data was collected, the SOM LS data better reflects the current market. 21 SOMLS Home sale statistics. -38- Chart 4.1 Median Sales Price of Existing Homes -Ashland/Jackson County 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 - - 100,000 - 50,000 - 0 2000 2007 2011 2012 ■ Ashland Median Purchase Price ■ County Median Purchase Price Section V - Housing Needs Proiectin2 Ashland's Housing need Section III looked at housing and economic trends that affect housing demand in Ashland. Section IV evaluated the existing housing stock targeted to various demographic groups. This section evaluates the City's housing stock based on the current needs and those likely to persist or arise in the future. Section 1, makes the distinction between housing need and housing demand. Housing demand is housing that the market built or is likely to build in the future. Housing need is based on the broad mandate of Goal 10 that requires communities to plan for housing that meets the needs of households at all income levels. This section focuses on two specific need components: housing needs by housing type and density as implied by households' ability to afford housing, and the needs of special populations. Methodology The following analysis uses a methodology suggested by Planning for Residential Growth: A Workbook fin- Oregon 's Urban Areas produced by the Transportation and Growth Management Program (TGM). The steps outlined in that document have been followed where feasible. City staff also contracted with former State of Oregon Economist, Richard Bjelland, to update the Housing Needs Model he created for Oregon Housing and Community Services (OHCS) and which has been used as a basis for projecting housing needs throughout the state in numerous Housing Needs analyses. The Housing Needs Model utilized a methodology based on housing tenure, price, and housing type choices to determine housing needs. This methodology looks at the age/income demographic of a study area and projects those demographic trends into the future. In contrast, the market or demand driven approach commonly used in the past to define housing needs for an area looked at historic housing production trends and then projected them forward the shortcoming ofthe market driven method historic trend analysis fails to identify whether the population's housing needs were being met to begin with . Where needed, data obtained from the Housing Needs Model was supplemented with data obtained from a City conducted survey of property owners and an online questionnaire, and census data comparisons. Populations Projections The components of population change are births, deaths, and migration. In compiling data on population rates for the City of Ashland, four main sources of data were used. The Certified population counts provided by Portland State University's Population Research Center, the 2005- 2010 American Community Survey 5-year estimates, 2010 Census, and the coordinated population estimates through Jackson County's Comprehensive Plan. The primary determinants of future housing need are the projected population growth and the demographics of that population. The City's Comprehensive Plan projects an approximate -40- population growth rate of 0.75% per year. This equates to approximately 187 new residents per year. Tables 5.1 and 5.2 below look at population change over the past two decades and compares the differences in the population projections between the PSU population Research Center and the U.S. Census data with the Comprehensive Plan Projections. The Census data from the twenty year period is in line with the City's comprehensive plan projections for population growth. The PSU population counts based on the 2000 Census estimates a slightly (though not significantly) larger growth rate across the board. It is also clear from the tables below that the City of Ashland is expected to grow at a much slower rate than that of Medford or the County as a whole. If the trend continues into the next three decades, then Ashland's population should grow by approximately 6,000 and be slightly below the 28.670 projected by the County's coordinated population estimate. Table 5.1 City 1990 2000 6A Change 2010 0/6 Change Average 1990-2000 2600-2010 growth Annual r rate Ashland 16,234 19,532 20% 20,078 2.8% .79% Medford 46,951 63,154 34.5% 74,907 18.6% 1.98% Jackson County 146,389 181,269 23.8% 203,206 12.1% 1.29% U.S. Census. I listoric AAGR (average annual growth rate) Table 5.2 city, Estimate Census Change Change Ave . m9a - July 1, 2010 April 1, 111 2000.2010 2000-201:0 Annual r Ashland 21,460 19,522 1,938 9.9% 0.9% Medford 77,485 63,687 13,798 21.7% 2.2% Jackson Count 207,745 181,269 26,476 14.6% 1.5% PSI I Population Research Center data estimate based on 2000 Census Data Table 5.3 Under 19 4. i5 24.5% 4,931 24 5% 3.3% 0.33% 61184 38% 14.6% 20-24 2,314 11.9% 1,885 9.4% -18.5% -1.85% 25-34 5,126 30'5 2,174 11.1% -111% 2,248 11.2% 3.4% 0.34% 35-44 2,378 12.2% 1,918 9.5% -19.3% -3.13% 45-54 1,545 9.5% 3,249 16.6% 110% 2,694 13.4% -17.1% 3.72% 55-64 1,146 6.9% 1,736 8.9% 51.5% 3,212 16% 85% 9.01% 65-74 1,279 7.8% 1,272 6.5% -0.5% 1,562 7.8% 22.8% 1.11% 75+ 955 5.8% 1,624 8.4% 70.4% 1,653 8.3% 1.8% 3.65% Total population 16,234 100% 19,52 100% 20.3% 20310 100% 3% 1.19% Average Annual Growth Rate calculated over a Twenty year period From 1990-2010. -41 - U.S. Census Bureau Age of Householder and age of projections There is a direct correlation between age of householder, income of householder, and housing type. For example, an individual 35 years old to about 65 years old earning area median and above is more likely to move from rental housing to ownership housing because that individual has the means to purchase housing and the ability to maintain that housing and live independently. Similarly, households that are considered moderate income and below (80% AMI) have higher rental rates due to an inability to purchase housing despite other factors including ability to maintain that housing and to maintain an independent lifestyle. Those populations considered elderly move from homeownership to renter as they lose the ability to maintain their housing units and an independent lifestyle. As shown in table 5.3 above, the group represented by ages 25-44 in 1990 was the largest age group, at 31.5%. A decade later, that population counted toward the 45-55 age group, which grew in that ten year period by 1 10% accounting for the aging of the existing population, but also an in-migration of a substantial number of peoples in that age group. In that same period, the City saw a distinct shift, from a population more evenly distributed between all age groups to a population more heavily populated by people in the age groups of 45 years and older. The last decade (1990-2000) saw these age groups grow by double digits while younger age groups experienced little or even negative growth (-11.2 in the 35-44 age group). By 2010 nearly all age groups under 45 years old saw negative growth rates, with the exception of age groups under 19 years and 25 through 24. However, these age groups grew at a rate of less than one third of the overall annual average population growth, while age groups represented by 55-64 year olds grew at a rate nearly 10 times that of the general population. These projections show that the trend pointed out in the 2002 I-INA still bears out; though the Ashland population is growing at a steady (albeit slow) rate, this growth is not divided evenly across all age groups. If this trend of aging households in Ashland continues into the future, housing targeting those populations 75 years old and older will need to be developed. That is housing that accommodates aging in place and ADA accommodations. Housing for aged populations could also require units with less square footage and fewer bedrooms and with little to no landscape maintenance. Lastly, as householder's age, homeownership becomes less economically advantageous. And older homeowners often opt to rent. Consequently the market for large single family houses on large lots could decline as the largest segments ofthe population ages. Theoretically, as older householders move out of existing single family units, the ownership housing freed up will serve as more affordable options for the next generations moving out of rentals and into homeownership. But if these population trends continue that may not be the case. For as those existing households age out of their current residences the population replacing them. those households 44 years and under. are shop \ in- gro\N th rates below that of the -42- general population and in some instances negative growth rates, which will lead to less demand for and a surplus of existing ownership units. The population is projected to grow by 8,567 individuals over the next 30 years. The Housing Needs Model estimates that the City will need to add 2,657 new housing units in the next thirty years to accommodate the increased populations. If the trends of the past few decades bear out, the majority of these new housing units will be targeted to older households. Housi►►b ownership by a,,,e of'hoc►seholder The 2012 to 2022 Ashland School District Enrollment Forecast shows a long term trend of declining birth rates within the Ashland School district. Similarly the forecast shows a general declining population of younger households with children over the last decade and partially attributes this to an inability of young families with children to afford housing in Ashland .23 The school district demographic report also cites low birth rates and in-migration of householders 45 years old and older as other factors which contribute to the general aging of the Ashland population and consequently the reduction in school district enrollment. 24 These trends point to an increasing percentage of ownership housing being occupied by older householders. It is clear in table 5.4 below that the two biggest factors in determining homeownership are income and age of householder. As household income increases among all age groups, so too does the rate of homeownership. This is also true of age, showing older householders with the highest percentages of homeownership despite income. Table 5.4 Homeownership Percentage of . A. and Income, 2010 HNM Household Age of Head of Household Income 15-25 25-35 1 35-45 45-55 55-65 65-75 75+ <10K 2.9% 7.9% 16.0% 25.0% _43.0% 46.1% 40.0% 10<20K 3.6% 12.7% 25.0% 37.0% 47.0% 61.0% 56.2% 20<30K 6.0% 16.6% 36.0% 4_5.0% 54.0% 73.2% 67.1% 30<40K 7.9% 23.9% 48.0% 53.7% 1 60.0% 74.4% 70.1 % 40<50K 10.8% 32.9% 58.1% 62.4% 80.0% 91.0% 84.0% 50<75K 22.5% - 49.9% 72.0% 82.9% 88.60% 92.1 % 91.2% 75K+ 32.0% 75.0% 83.0% 92.0% 96.0% 97.0% 93.0% Household Income The Oregon Housing Needs Model Methodology states that "household income is the key variable in detennining the affordability component of housing need and is strongly correlated with housing tenure". The Housing Needs Model estimates that there is currently a significant Ashland School District. Ashland School district Vnrollment Forecasts 2009-10 to 2018-19. Portland State University Populations Research Center. December 2008, page 1. 2-1 Ashland School District. Ashland School District Population and Fnrollment Forecasts 2012-13 to 2021-22. page 12. -43- gap of housing units at price ranges affordable to those with the lowest incomes and surplus of housing units affordable to those making above the area median income. Households that experience the cost burden resulting from this gap arc more vulnerable and at a higher risk of homelessness. As seen in tables 5.4 and 5.5 age and income are the two biggest factors in housing choice. Table 5.4 above shows the relationship between age and income on homeownership rates: homeownership rates rise with increasing income and as householder's age. Whereas the relationship of age and income to rental units is the converse: as incomes and ages rise rental rates decrease. Table 5.5 Percentage of Renters by •Age and Income, 2010 HNIVI Household Age of Head of Household Income 15-25 25-35 35-45 45-55 55-65 65-75 75+ <10K 97.1% 92.1% 84.0% 75.0% 57.0% 53.9% 60.0% 10<20K 96.4% 87.3% 75.0% 63.0% 53.0% 39.0% 43.8% 20<30K 94.0% 814% 64.0% 55.0% 46.00/( 26.8% 32.9% 30<40K 92.1% 76.1% 52.0% 46.3%/0 40.0% I 25.6% 29.9% 40<50K 89.2% 671% 41.9%/0 37.6% 20.0% 9.0% 16.0% 50<75K 77.5%/0 50.1% 28.0% 17.1% 11.4% 7.9% 8.8% 75K+ 68.0% 25.0% 17.0% 8.0% 4.0% 3.0% - 7.0% Income Projections Household income is difficult to predict. Based on past trends, incomes are expected to increase (Median Household Income increased by 22.9% over the past decade). Poverty Statue In 2000 12.5% of Ashland families, and 19.6% of all individuals lived below the federal poverty level. By 2010, those numbers declined slightly to 11.5% and 18.8% respectively. Household She and composition Household size within the City of Ashland has been decreasing slowly over the past two decades. Currently, the average household size is estimated to be 2.08 persons per unit for owner- occupied households and 2.06 for renter households. The 2000 census estimated the average household size of owner-occupied units to be 2.30 and for renter occupied units to be 1.98. The average estimated household size for all housing types was 2.14. The I lousing needs model uses a current household size of 2.119 and uses the same estimate for forecasting purposes. The 2007 RNA conducted property interviews with five property managers. From that information and the information gathered from a needs analysis conducted concurrently. Ferrarini and Associates determined that the greatest need in Ashland at that time was for the development of more studio apartments. fiolloNwed bN a need for a relatively modest number of -44- one bedroom and three bedroom units. The analysis also showed that there was an oversupply of two-bedroom rental units. The IOllowing table is from that report and illustrates their findings. 25 City of Ashland Rental Needs Analysis. Perrarini Associates. Inc 2007. -45- Table 5.6 City of Ashland Rental Housing Need by Unit Type RNA 2007 Type Demand Su I Net Need Studio 1,039 392 647 1 Bedroom 1,290 1,188 102 2 Bedroom 872 1,676 804 3+ Bedroom 900 846 54 Total 4,102 4,102 0 Source: US Ccnsus and l errarini & Associates'" An updated analysis of household size and type found much the same thing. "There is a definite lack of studio units for the growing percentage of 1-person households among both renter and owner-occupied households. both of which grew at two and three times the rate respectively of the total populations of all renter and owner households. This could be attributed to three factors: the disproportionate growth of older households; a nearly 50% reduction in the number of 1-room dwelling units between 2000 and 2010; and the disparate increase in one and two person households. One factor that is estimated to have a substantial impact on the housing market is the steep decline of all owner occupied households larger than two individuals. These findings were further substantiated in the property owner and manager questionnaires sent out by the City in early 2012 which showed that studios were most in demand. while two bedrooms were in least demand. Table 5.7 Housing Units by Room Size Rooms 2000 %2000 2010 %2010 % Change 1 Room 493 5.4% 247 2.4% -49.9% 2 Room 692 7.6% 515 5.0% -25.6% 3 Room 870 9.6% 1,252 12.2% 43.9% 4 Room 1,856 20.5% 2,043 20.0% 10.1% 5 Room 1,822 20.1% 2,168 21.2% 19% 6 Room 1,498 16.5% 1,601 15.70 6.9% 7 Room 827 91% 1,387 13.6% 67.7% 8 Room 624 6.9% 521 5.1% -16.5% 9 or More 389 4.3% 469 4.8% 20.6% 1 I.S. ('cnsu, 13urc:w Ihid. -46- Table 5.8 Owner Occupied Units • Household Size HH Size 2000 2000% 2010 2010% % Change Total 4,456 100 4,856 100% 9% 1-person 1,117 25.1% 1,460 30.1% 30.7% 2-person 1,946 43.7% 2,212 45.6% 13.7% 3-person 647 14.5% 623 12.8% -3.7% 4-person 532 11.9% 412 8.5% -22.6% 5-person 157 3.5% 103 2.1% -34.4% 6-person 45 1.0% 34 .7% -24.4% 7 or more 12 0.3% 12 .2% 0% U.S. Census Bureau Table 5.9 Renter Occupied housing by household size HH Size 2000 2000% 2010 2010% % Change Total 4,081 100% 4,553 100% 11.6% 1-person 1,722 42.2 2,086 45.8% 21.1% 2-person 1,361 i 33.3% 1,336 29.3% -1.8% 3-person 594 14.6% 646 14.2% 8.8% 4-person 262 6.4% 305 6.7% 16.4% 5-person 90 2.2% 118 2.6% 31.1% 6-person 33 .8% 41 _ .9% 24.2% 7 or more 19 0.5% 21 0.5 10.5% U.S. Census Bureau Table 5.10 Estimate • • . • Household Size and • 20102, Needs Anal sis No. of HH Studio 1 Bedroom 2 Bedroom 3+ Bedroom 1-person 2,086 1,252 834 2-person 1,336 601 601 134 3-person 646 291 355 4-person 305 31 274 5 person 118 118 6- erson 41 41 7-person 21 21 -Demand 4,553 1,252 1,435 923 943 Suppy 255 1,506 3,647 4,822 Surplus/Deficit (997) 71 2,724 3,879 1'.S. ('cn>uS 13111'Cau 27 Estimated household prel'erences haled on percentages from the 2007 RNA-derked from Rilc~ Research community survey. (60%-studio.40%K45%-Ibdrm.45"4,.-411"„& I0'",-2hdrm. I0 "o.604u.90"„&I00°„- 'hdrm) -47- Section VI - Baseline forecast of Housing Demand This section concludes with a baseline forecast of housing demand. The baseline forecast represents our best estimate of how the market will perform over the next thirty years. The forecast assumes no changes in current City policy. In summary it is intended to provide a rough estimate ofwhat the housing market will build in Ashland over the next thirty years. The forecast relies on the County's coordinated population forecast as its foundation but also utilizes assumptions about average household size, persons in group quarters, and housing trends from a variety of sources including prior year's census information and the Housing Needs Model. Table 6.1 Variable Value Current-2010 Future-2040 Change Population 20,078 28,670 8,592 Persons in Group Quarters 961 1,450 489 Occupied DU 91409 12,962 3,553 Single Family Dwelling Units Percent Single Family DU 71.9% 73.9% Number of Single Family DU 7,356 9,591 2,235 Persons in single family HH 14,933 20,141 5,208 Aggregate Vacancy Rate 2.5% Total New Single Family needed 2,235 Multiple Family Dwelling Units Percent Multi-Family DU 26.6% 25.5% Number of Multiple-family DU' 2,720 3,311 591 Persons in Multiple-Family HH 5,522 6,985 1,463 Aggregate Vacancy Rate 2.5% New Multiple-Family DU <l, 591 Total New Dwelling Units Needed Per the 2010 Housing Needs Model for the City of Ashland Aggregate HH size 2.03 2.1 Vacant dwelling units - 583 Total new Dwelling units needed - 2,657 over the next 30 ears Dwelling units needed annual) 88.6 28 Future proicctions based on Profile ol'Gencral Population and I lousing Characteristics: 2010. 2007-2009ACS 3-year estimates: Tenure by units in Structure. 2007-2009 ACS 3-year estimates: Total population in occupied housing units by tenure by units in structure and 1- INA Template 2-projected future housing status as of 2040. (Sec also Table A-7 in the Appendices. Persons in household is calculated using aggregate household size per 2006-2010 ACS, the occupancy of the unit is not determined to be either rental or ownership households. 311 Same as above. -48- Table 6.1 is a baseline lbrecast of 17ousing demand. That is to say, the table extrapolates the housing mix that would occur in the fiiture based on past trends and market demand. The forecast utilizes data from two sources: the 2010 1iousing Needs Model (which uses the county coordinated population projection) estimates for housing occupancy, household size, and vacancy rate, and the 2007-2009 American Community Survey estimates of total population in occupied housing units by tenure by units in structure (see appendix). This projection is solely based on housing demand and past trends, and predicts what the housing market demand would provide in the next thirty year period. However, housing market demand does not correlate to the housing needs of the community, as can be seen from the table. The housing market would continue to provide a surplus of'single family housing units further intensifying the need for multi-family housing and housing that is affordable to the majority of*Ashland's residents. To base the housing needs offuture populations upon historic trends would be to continue the inequities of the past into the future, and that is not the goal of this needs analysis. Instead, the needs analysis will use this baseline forecast to show how development trends within the city should be modified in order to meet the needs of the population rather than the demands of the private market. Housine needs by type and density We beuin our analysis of housing need by reviewing the housing needs identified in the City's 2002 HNA. The results show some profound differences between identified need by type and permits issued by type. The number of single-family permits issued in the decade between the last HNA and this current effort shows that the number of Single Family units continues to be developed at a rate nearly double that of multi-family. The 2002 study identified needed housing for the 20-year period between 2000 and 2020. At this point, the City is halfway through that planning period. While some differences between identified need and what housing has been built can be explained by the cyclical nature of the housing market, particularly in multiple family housing, the development of the most needed housing types, low-cost ownership and government assisted and affordable rentals, lack the funding and support to develop at the levels that the community needs. These trends will continue, as long as the private market is driven by profit and the federal budget for affordable housing continues to be reduced. In summary, the City is continuing to fall short of providing needed housing types. as identified in earlier studies. The baseline forecast however, is a forecast of housing demand. Other data presented in Section 111, suggest that the market is not meeting the housing needs of many Ashland residents and workers. The continued disparity in the increase in housing costs compared to the increase in wages has aggravated the problem. Moreover, even if housing prices increase at a slower rate, the types of jobs forecast to grow in Ashland will not allow workers to afford housing. In summary, the financial need is substantial and a large deficit of lower cost units exists several points should be kept in mind when interpreting this data: -49- • Because all of the affordability guidelines are based on median family income, the percentage of households meeting the income criteria are comparable in all jurisdictions. For example, 36% of households earn 80% of the area median income. Thus, the income guidelines provide a rough estimate of financial need and may mash other barriers to affordable housing such as move-in costs, competition for housing from higher income households, and availability of suitable units. • The ratios applied in the HUD income guidelines are defined such that somewhere around 40% of households will always be considered low income. Ashland is expected to add 8,592 households between 2010 and 2040. Assuming 36% of these new households are considered low-income by IIUD, about 3.057 ofthese new households will be low-income. Table 6.2 needed Rental Units Type Type Demand Supply Net Need/Sur lus Studio 1,252 255 -997 1-Bedroom 1,435 I 1506 71 2-Bedroom 923 3647 2,724 3+ Bedroom 943 4,822 3,879 Housing Aff n-dnbililr- The standard measure of affordability as defined by the U.S. Department of I-lousing and Urban Development (HUD) is when the cost of rent and utilities (gross rent) is less than 30% of income. When gross rent levels exceed 30% of income, particularly by a large percentage, it places a significant burden on household finances. Householders who pay more than 30% of their income toward housing costs are called "Cost burdened". Householders who pay more than 50% of their income toward housing costs are called "severely cost burdened". When households are housing "cost burdened" their ability to pay for the other necessities of life are compromised. Historically a large percentage of renters in Ashland expend more than 30% of their income on housing costs. The 2009-2010 American Community Survey data showed that 63% of renters in Ashland were cost burdened, of the 4,313 renter households in Ashland 2,714 pay more than 30% of their income toward housing costs. This is a 10% increase in the number of renters who were identified as housing cost burdened by the 2000 Census at 56%. The Housing Needs Model estimates that the City needs 1,163 units targeting those with those lowest incomes, with rents beloNN $195 a month. 1.166 units ith rents between S 195-422. and 243 units rents -50- between $423-655. It is expected that the City will have a surplus of all units with rents at $656 and above. The Housing Needs Model shows that the majority of the rental units will need to be targeted to those households earning 50% AMI and below. (See appendix) I lomeowners experience less cost burden than renters, but there continues to be a deficit of housing for moderate to above median income households and a surplus of units targeting those earning $75.000 a year and above, which is less than 25% of the population. The Housing Needs Model estimates that the City will need, 402 housing units available under $72.3k, 950 units with sale prices between $72.3k- 110.1 k, 916 units with sale prices between $110. 1 k-147.6k, 745 units with sale prices between $147.6k-185.3k, and 1,594 units with sale prices between $185.3k- 279.3k. The majority of the ownership units will be targeted to those making more than the area median income. The model assumes a surplus of units priced at $279.3k and above. (See appendix) Housing Densill Figure 6.1 on page 51, show housing density in terms of units per acre mapped by census block. The City is comprised primarily of land zoned for single family dwelling units. Due to the high cost of land in the City of Ashland, most developments maximize the allowable density. One exception is land zoned for multi-family development. Though there is more land zoned for single family development, land zoned for multi-family developments is often developed as single family attached due to market forces, high end multi-family developments such as condominiums and townhouses are more economically attractive to private market developers looking to maximize density and profits. This has made it difficult for non-profit and for-profit developers to construct affordable and market rate multi-family rental complexes which were shown to be the housin;.g type most in demand by the 2007 RNA. Similarly many of the existing affordable and market rate units are HUD expiring use properties, once the HUD contract has expired the rental units can convert to market rate rentals or be to ownership units by converting them to condominium units. -51 - Figure 6.1 ASHLAND Household Density Per Acre Census 2000 rroae Derresy woAawns we based on ow 2000 . ~ _ US C""BbU Croup Bo drres. ' Thus aces sudr es. Mees eulside dre City L-M,. P. le end oPensPau. CoV Caese. sorlPlski and dlyn urrdevNyred rw re IrclurMd In er. deneey C.Wshen Or" the US Census date ~ I Id I - '-1 _ r' Households _ _ - - , Per c i . Acre 1064.1 C] 15 2 c; - - L.~25.3.5 3.5 • 4.06 . 4.5.5.62 I The findings of the llousing Needs Model and an analvsis of income and housing cost indicate that: • A median family household cannot afford to purchase a home in Ashland. • The largest dwelling unit gap exists for households earning less than $ 10,000 annually. • The city needs approximately 803 additional units costing less than $200 per month. These units fall in the category of government assisted housing. • Only 232 owner-occupied units in Ashland are valued, under $110,000 or about 4.5% of all owner occupied units. The small number of owner-occupied units valued under $110,000 limits ownership options in Ashland for households earning less than $40,000 annuallN. In summary, our evaluation of housing mix, density, and affordability su~(Igests that the City continues to struggle with issues of affordability and needs to plan for a larger share of multi- family housing, and for a greater number of single family housing types on smaller size lots. Housing tenure remained fairly constant at 52% and 48% respectively for owners and renters. though the ownership rate for Ashland is lower than that of the surrounding areas it is similar to other communities which contain universities. - 52 - Figure 6.2 Owner Occupied units by affordability 4500 - - 4000 - - - - - - - - - 3500 - - 3000 - - - 2500 - 2000 - - 1500 1000 500 0 <72.3 72.3<110.1K 110.1K<147.6 147.6<185.3k 185.3k<279.3k 279.3k+ ■ Ownership Units Existing ■ Ownership Units Needed Figure 6.3 Rental Units needed by affordability 1600 - 1400 1200 - 1000 0 800 - - E z 600 400 200 0 - r - - - 0-194 195-422 8Un423-655 656-897 898-1132 1133+ ■ Existing Rental its 0oNeeIded Rental Units Housing needs of special populations Oregon Housing and Community Services (OHCS) identify several "special populations" that have housing needs distinctly different than the general population. These include the frail and elderly, farm workers, peoples with disabilities, persons recently released from state institutions. and persons infected with the HIV virus, among others. The housing needs of these special populations are highly dependent on individual circumstances. It is not uncommon for the same individual to be classified into two or more of the categories. As such., it is very difficult to develop an estimate of the number and type of housing units needed to accommodate these special populations. In this section, we estimate the number of persons with such disabilities and provide projections based on data provided by the 2010 Needs Analysis Priorities for Special Needs Populations compiled by OHCS. Senior housing, The 2010 Needs Analysis Priorities for Special Needs Populations completed by OFICS to prioritize funding for new affordable housing units throughout the state looks at the number of housing units available to and the population of various special needs households by County. The OHCS Needs Analysis Priorities for senior housing is detailed in Table 6.3 below. Table 6.3 Senior Housing vs. Population (Jackson County) Special Needs population Existing Units Population % of Housing Housing Available Available Gap Elderly 1,119 8,047 13.9% 6,928 Frail Elderly 8 919 0.9% 911 Section IV-Ashland's Housing Inventory. details the number of existing retirement and assisted living units within the City. The 2010 Housing Needs Model estimates that a total of 257 new units will need to be added to the City's existing stock to house populations' ages 65 years old and older. Of those units 83 rentals and 174 ownership units will be needed to accommodate the housing needs of seniors. Special needs housing, The 2010 Needs Analysis Priorities for Special Needs Populations completed by Oregon Housing and Community Services to prioritize funding for new affordable housing units throughout the state looks at the number of housing units available to various special needs households by county. The OHCS Needs Analysis Priorities for Special Needs Populations estimates that that there are very few housing units currently in existence throughout the county for the majority of the people who could be categorized as having special needs. See table 6.4 below for details. Table 6.4 -54- Special Needs Housing vs. PPopulation (Jackson County) Special Needs Population Existing Units Population % of Housing Housing Available Available Gap Alcohol & Drug Rehab 54 4,440 1.2% 4,386 Ctironicall Mentally III 47 2.842 1.7% 2,795 Developmental Disability 44 794 5.5% 750 Domestic Violence 33 170 19.3% 137 Farm workers 77 3,735 2.1% 3,658 HIV/AIDS 4 136 2.9% 132 Physically Disabled 44 497 8.9% 453 Released Offenders 0 194 0.0% 194 As seen in the table above, there is currently a significant housing gap to serve special needs populations. 11'a proportionate percentage of the population were to be extrapolated forward to the 2040 population projection for the County, people with special needs would be an estimated 6.3% of the County's population or 11,03 1 people. As the population increases, it is evident that the number of housing units available to serve populations with special needs will continue to fall far short of the need for such housing unless a concerted effort to develop housing is encouraged. Housing Stock available to persons with Disabilities Census data reports that 2,379 people five years old and older with disabilities resided in Ashland in 2000. Peoples with Disabilities made up 12.8% of the population at that time. The 2010 Census and the 5-year American Community Survey estimates do not provide updated information about people with disabilities. However, as the City of Ashland has a greater percentage of the population which is 50 years old or older, it can be expected that as the population ages, housing that meets the changing needs ollthe population will need to be provided. Currently the extent of housing stock available to peoples with disabilities is not known. However four complexes representing 148 units designated for seniors and peoples with disabilities are listed on the preservation property list which are in danger of expiring as dedicated affordable housing for seniors and peoples with disabilities. Housing Stock available to persons with HIV/AIDS Information on the housing stock available for persons with HIV/AIDS is currently unavailable for the Medford/Ashland MSA. State ofOregon department of health services records show that there are 149 people with HIV/AIDS living in Jackson County.' The number of people with HIV/AIDS living within the City of Ashland is not known. Consequently, the City does not prioritize or track the development of housing stock available to persons with HIV/AIDS. " State of Oregon. Department of Health Services Website: http://w~N,,~N'.oregon.gov/DFlS/ph/hiv/data/docs/l-ivingcoum\ Is - 55 - Homeless Needs It is estimated that in 2008, 1 in every two hundred people in the state of'Oregon was homeless. Data from the Point in Time homeless Count conducted across the State of Oregon and throughout the U.S. in January 2008 showed that Oregon has the highest concentration of' homeless people of any state, at 0.54 percent. or 20,653. The 201 1 Point in Time homeless count for Jackson County totaled 1,049 people. Totals are not broken out per jurisdiction but are for the entire Continuum of Care region. Of the 1,049 respondents, 39% identified themselves as chronically homeless (continuously homeless for a year or more or had at least four episodes of homelessness in the past three years), 48%, or 502 respondents, were families with children. '['he majority of the respondents 26% cited "couldn't afford rcpt" at the reason for leaving their last living arrangement. Ashlatrd School District An article published in the Ashland Dcrily Tidings reported on a rise in poverty in rural areas. Specifically. the article cited dramatically increased poverty rates among children in areas deeply affected by the recession including Medford and Ashland.32 The Ashland School District reported that for the 2010-2011 school year 84 children currently attending school within the district report being homeless. This number is up from 62 the previous year. Figure 5 2011 One-Night Homeless Count for Jackson County ■ Single Adult Men r, ■ One Parent Family With Children = Couple without children m Two parent Family with Children L Unaccompanied Youth (17 or under) Other Oregon Housing and Community Services receive federal and state resources to be used to support services for homeless populations. They include: Emergency Housing Account. Emergency Shelter grants, State Homeless Assistance Program, Shelter Plus Care, and Supplemental Assistance for Facilities to Assist I lomeless. Additionally, under the Federal Hammond, Betsy. "Rural Students most like k to lire in hoyerl\Sums Southern Orgon districts see high rates... Ashland Daily Tidinus Ol Dec. 2009. - 56 - Continuum of Care program administered by HUD. local governments and agencies can apply for federal funding for programs and services to prevent and combat homelessness. The Jackson County Continuum of Care has been the recipient of McKinney Vento funds since 2000. The City of Ashland does not directly receive any funds to assist homeless persons or persons at risk of becoming homeless, and there is no longer a local organization that provides services to homeless populations, however City of Ashland residents can access available services, programs and funds through ACCESS, Inc. the regional Community Action Agency that serves Jackson and Josephine Counties. Similarly, many non-profit agencies that provide housing or support services for homeless populations are eligible to apply for finds through OI ICS or through the Jackson County Continuum of Care. In 2007, Interfaith Care Community of Ashland (ICCA), the sole provider of homeless services located within the City of Ashland, closed its Ashland location and consolidated its operations to that agency's Medford office. After the loss of ICCA, the City passed an ordinance to set up an emergency shelter in times of inclement weather. Several local faith based organizations and Peace House, a local non-profit. offer weekly hot meals, showers. and occasionally a place to sleep. Though there are limited local housing resources for the City's homeless populations, there are several organizations that provide emergency shelter, transitional housing, and other resources and supportive services for homeless individuals in Medford. Many of the City's homeless, however, lack the resources for or have transportation to get to those providers in Medford. Rental units at price ranges affordable to those with the lowest incomes (>$10,000 a year) would serve to reduce homelessness. The 2010 Housing Needs Model shows this population has the greatest need for housing. It is known that households experiencing cost burden, that is, those who pay a disproportionate percentage of wages toward housing costs, are the most vulnerable, and have an increased risk for falling into homelessness. Similarly. individuals and families transitioning from homelessness often have little or no ability to pay housing costs. These individuals and families need housing that is either subsidized or extremely affordable in able to work toward stabilization and self-sufficiency. -57- Section VII - Meeting Housing Needs Housing Distribution Strategy In order to meet housing needs of the community over the planning period (through the year 2040), some modification in the current distribution of housing that is being developed by the demand driven market will be required. The proposed modification is shown in Table 7.1 below. Table 7.1 Housing Type Distribution Housing Type Total Estimate Future Final Target Current Needed Housing of Existing Needed/ Distribution of Approx. Distribution to Units Units 33 Gap Housing by Distribution meet future Needed Type in 2040 by Type 34 unit need in 2040 Single Family 8,913 7,356 1,557 65.80% 80.26% 45.50% Manufactured 325 154 171 2.40% - 5.0% DU in Park Duplex Units 420 526 -106 3.10% 2.63% N/A Tri-Quad Units 569 530 39 4.20% 3.12% 1.1% 5+Multi-Family 3,319 1,655 1,655 24.50% 13.99% 48.4% Total 13,545 10,230 3,315 100% 100% 100% 'T'his distribution modification is further exemplified by the 2010 1 lousing Needs Model outputs for unit type based on income and affordability. Based on Census data for income, the City needs many more low cost rental units, which are often multi-family units and government assisted housing units, whether through tat-credits, loans, or subsidies in the form of project based or portable housing vouchers. The City has a deficit of ownership units below $279k. The Housing Needs Model shows a total deficit of 2,719 ownership units affordable to people making below $75,000 annually, which is the salary needed to afford a housing unit ith a purchase price of $279K . 35 In order to achieve the desired distribution by 2040, the City will need to modify the development mix in favor of multi-family units over that of predominantly single family units which has historically prevailed. The City will need to substantially increase its stock of multi- family units in order to meet the desired distribution by 2040, skewing the development of'such units beyond parity with the development of single family units to close the gap. 33 From 2006-2010 American Community SurvcN. 34 Number derived from Census Building Permit Data 2000-201 I. fire Appendix liar details. 15 National Assoc iatitill 01'1-10mcbuiIders affordability calculator: http:r"~%X\\\.nahh.orL -,rneri,:.asp.°Lenericc'ontentil)-75315 Table 7.2 Estimate of Income and Affordability Model Rentalslmonthl rent Number of Existing Units Current Needed Units Current Surplus/Gap 0-$194 152 955 -805 $195-422 283 1,052 -769 $423-655 1,052 940 112 $656-897 1,401 480 922 $898-1132 830 557 273 $1133+ 1,258 283 975 Total 4,976 4,266 710 Ownership Unit Values <$72.3k 150 401 -251 $72.3k<110.1 k 82 749 -667 $110.1 k<147.6k 18 665 -648 $147.6<185.3k 160 656 -497 $185.3k<279.3k 676 1332 -656 $279.3k+ 4004 1750 2255 Total Units 5089 5552 -463 Challenges and Potential Strategies Challenges To the degree the 2010 Housing Needs Model projections are accurate representations of Ashland's future housing needs. then City may be faced with the following challenges over the next 20 years: • How and where to zone and "protect" land for affordable rental and ownership housing as well as multiple-family housing at all levels. • flow to encourage developers to build what Ashland needs (by price/affordability). rather than the products they are comfortable building or which yield the greatest profit. • I low to continue to create and sustain Ashland's great neighborhoods. • I-louse to create a variety of housing types and incomes in neighborhoods. • How to encourage effective partnerships to increase funding for low-income housing and provide responsive. coordinated and effective housing choices and service. Goal To provide for the needs of the expected population gro~Nth in Ashland over the next 20 years and maintain a diversity of income, cultural, and age groups in Ashland's population. consistent with other plan goals. -59- Objectives Strive to maintain a diversity of population groups in Ashland, especially if increased growth pressure leads to more expensive housing. Concentrate on population groups that are important to Ashland's character, such as students, artists and actors, employees of the City, school district, and college, service personnel who work in the tourism industry. hourly wage earners in local industries, and local residents who have not retired and live on fixed income. (Ashland Comprehensive Plan) Increase owner-occupied households to comparable levels with county and state ownership averages. Potential Strategies The City needs to look ways to encourage; • Rental housing at rates affordable to low to moderate income households. • Ownership housing opportunities that arc targeted to the. 76% of the population that earns less than $75,000 a year, • More housing types targeted to seniors and peoples with disabilities. • More studios and one bedroom units. • More multi-family housing types, • Manufactured housing in parks and on single family lots. Challenges To ensure a variety of dwelling types and provide housing opportunities for the total cross- section of Ashland's population, consistent with preserving the character and appearance of the city. (Ashland Comprehensive Plan) Objectives Conserve land and reduce the impact of land prices on housing to the maximum extent possible. Potential Strategies • Encourage the development of vacant available lots within the urban area • Consider mixed uses wherever they will not disrupt an existing residential area • Support efforts for rehabilitation and preservation of existing housing and neighborhoods. Consider allowing and encouraging accessory apartments in new and existing neighborhoods as an outright permitted activity in single family zones • Consider restricting the development of detached single family residential units in multi- family zones -60- Challenges The local economy does not provide wages that are commensurate with housing costs. 49% of homeowners with mortgages, 14% of homeowners without mortgages, and 63% of renter households spent more than 30% of household income on housing costs. Objectives In order to provide for the long-term self-sufficiency of Ashland's low- and moderate-income households, the issue of affordable housing must be addressed in a comprehensive manner. In addition to the land use related actions already identified, the following actions may help meet the objectives of decreasing the percentage of households who experience cost burden. Potential Stratelzies • Provide more economic opportunities for Ashland residents by improving the local economy and attracting more "family wage" jobs, • Support efforts of affordable housing providers, including: the Housing Authority of Jackson County, Rogue Valley Habitat for Humanity, Access, Inc., Ashland Community Land Trust, and Umpqua Community Development Corporation to provide affordable housing, financial assistance, and services to Ashland low and moderate income, elderly, and special needs households, • Dedicate Community Development Block Grant funds as projects and needs arise. • Work with employers to better understand the demographics and housing preferences of their workforce. Conclusion The identification of a set of land use policies that will lead to the development of more affordable housing while achieving other community goals is difficult at best. Ashland however, is not the only community in Oregon, or the United states that is facing housing affordability problems. A considerable body of literature exists on land use policy and affordable housing that summarizes approaches that communities have used to address the housing affordability issue. In general, communities should review policies to ensure that (1) they do not create barriers to or exclude any housing types, and (2) they reduce the cost of housing. Below is a brief summary of some of the policy approaches that communities can consider to address housing affordability. • Remove Barriers: Barriers to construction Uf needed housing or efficient use of laud are those that public policy has imposed. A jurisdiction waulcl select measures in this categoa-ti, if it has evidence that the market wants to build needed housing types or densities but is kept from doingso by publie policies. The City should review policies to seed out ineficctive -61 - policies. obsolete design standards, unnecessarily burdensome permitting processes and inadequate or inappropriate zoning. • Provide Incentives: Incentives are measures that increase the likelihood that developers will provide needed housing or use land efficiently as a result of'reduced costs. A community would select measures in this category if it has evidence that the market might be willing to build a certain type or density of housing, but there is uncertainty about the success in the marketplace and/or current economic conditions,for• such development are less than optimal. • Explore cost reducing measures including costs gfpublic services and facilities, development fi>e.s, and other processing casts. An example gf a less commonly considered incentive includes working with neighborhood groups to address concerns. If'successful, this can reduce developers' expenditures on lengthy appeals. • Require Performance: These measures are mandatory plan policies and code requirements cfffec•ting development. A.jurisdiction would select measures in this category ff it has evidence that the market is not likely to respond, at the level of incentive that a communty• can provide. • The public sector is not directly producing the housing. Therefore, estimates of the likely effect of these measures should be qualified by some uncertainty about exactly how the private sector will respond. For example, if higher density requirements or mandatory design standards are perceived by the development communitY (designers, builders, lenders as unprgfflable or unmarketable, the desired housing may not get built in the community. In the case gf'up-_oning.for higher densities, this may result in no housing development instead of housing at lower densities. For this reason,.jurisdictions should seek a balance in adopting regulations and try to redirect, not stifle market forces that produce most of a community's housing. In many, cases, requirements should be applied uniformly on all developments so that no particular development gains a competitive advantage. This will encourage developers to find ways to produce the product within market constraints. • Review development standards? Lot size typically impacts the price of lots, the size of housing units allowed and the overall price of housing units. • Evaluate minimum lot sizes and setbacks, maximum heights and lot coverage • Evaluate compatibility standards, particularly .for rnultiplc-firmily developments and inffll .sites. • Evaluate inc•entn-es frnr the development ofsmaller units. -62- Appendix -63- Table A-1 Housing demand /capacity comparison by unit type t Needed Units per Housing Gap Analysis 1557 1759 3316 through 2040 Deficit by 2040 -88 -375 -463 Annual units needed through 2040 55.6 62.8 118.4 Total Year Supply 26.4 22.0 24.1 -64- I Table A-2 Future Needed Unit Distributed by Comprehensive Plan Designation 77 e. . Per Airport Airport Master Plan 0 0 0 Commercial 15.8 252 0 252 Croman Mill 62.8 340 0 340 Downtown 2 53 0 53 Employment 105.1 221 0 221 HC 1.4 15 0 15 HDR 8.9 162 0 162 Industrial 12.1 0 0 0 LDR 38.1 70 70 0 MFR 30.8 323 0 323 NM 17.7 118 100 18 SFR 214 875 875 0 SFRR 48 103 103 0 SOU 19.5 SOU Master Plan 0 0 Suburban R 42.3 311 311 0 Woodland 4.3 10 10 0 Totals 622.8 2853 1469 1384 \,,tc: L~a 1",IIh,,Jlin; 1 10% 4111 (',nnmrrrial and I nthl„nirni I innc hccn rCd[wCd h\ X11".. li'um vvhal ~wuld h; pcrmittcd as such unit, arc not rcquircd. Table A- 3a • • Units • • 2002-2011 Data Derived from City Database (EDEN) Year Permit Issued Mixed Use - Multi- Accessory New Group above Family Residential Condominium Homes commercial Units Units (not including mixed use) 2002 3 - - - 30 SOU 2003 2 - - - 2004 2 - - - 2005 4 26 6 8 2006 22 5 4 48 2007 13 2 2 7 2008 9 2 8 0 2009 0 1 1 0 2010 0 60 4 0 2011 3 209 SOU Total 58 96 27 63 239 Table A-3b Units per Year • • 2002-2011 Date on single family and muld4amilly development derived from Census data Year Single Multi- Accessory Condominium Group Homes Manufactured Permit Family Family Residential Conversions Homes Issued Units 2002 99 9 - - 30 SOU 1 2003 125 64 - 14 0 2004 103 55 - 4 0 2005 128 43 6 22 0 2006 47 57 4 34 0 2007 52 11 2 8 0 1 2008 20 12 8 10 0 0 2009 25 1 1 0 0 0 2010 34 10 4 0 0 2011 24 6 2 0 209 SOU Total 657 268 27 92 209 2 -66- Table A-4 7AiOrport 9 Per Airport Master Plan mmercial 52 15.8 Croman Mill 31 62.8 Downtown 17 2 Employment 114 105.1 HC 10 1.4 HDR 48 8.9 Industrial 6 12.1 LDR 83 38.1 MFR 115 30.8 NM 77 17.7 SFR 552 214 SFRR 27 48 SOU 19 19.5 Suburban R 50 42.3 Woodland 30 4.3 Totals 1240 622.8 J'niurr: I f/h/ ° ?.1 li mn 111, Till' RrrilGrhl' tti''s 1 (;B 'k. (7n' i inil, -67- Table A5 employers land's largest Business # of Employees % of Population Southern Oregon University Approx. 750 3.6% Ashland Community Hospital 410 1.9% Oregon Shakespeare Festival 398 1.9% Ashland Public Schools 350 1.6% City of Ashland 229 1.1% Butler Ford Approx. 160 0.7% Pathway Enterprises, Inc. 130-150 0.6% Ashland Food Co-Op 130 0.6% Pro Tool Approx. 100 0.4% Linda Vista Approx. 75 0.3% Albertsons 72 0.3% Plexis Approx 70 0.3% Safeway 65 0.3% Town and Country Chevrolet 50 0.2% Cropper Medical 50 0.2% Bi-Mart 45 0.2% Source: 01r o~',9shlurrcl, C'l~niuher of ('onurterc~rchsih~ u ~r~t . n.<llluudclaanther Conn. -68- Table A6 Population Projections 33000 32000 31633 31000 30000 28670 30139 29000 28000 27000 26055 26000 25000 24000 23000 22000 21000 20000 20255 19000 18000 17000 16000 15000 14000 13000 12000 11000 10000 ~1 ti ti r1 N N rl rl N H N N H wi Historic Population Ashland Comprehensive Plan Projection Jackson County Comprehensive Pian Forecast (Table 7) acksor Courty RIPS 2005-2060 projection (0.76% grm,.,th) Unea, (Historic Population) -69- Table A7 2009 American Number Percentage Population Percent of Number of Community Survey'' of Units of Units 2009 37 Housing Units Housing 2009 2009 204038 Units 2040" Total Occupied housing 9819 10015b 20147 100% 12962 units Owner Occupied 4831 49% 10236 49% 6351 Housing Units 1 detached 4140 42% 9850 42% 5444 1 attached 371 4% 4% 518 2 units 0 0% 0 0% 0 3 or 4 0 0% 0 0% 0 5 to 9 41 0% 181 0% 53 10 to 19 25 0% 0% 0 20 to 49 90 1% 1% 130 50 or more 0 0% 0% 0 Mobile Home 164 2% 205 2% 259 Renter Occupied 4988 51% 9911 51% 6611 housing units 1 detached 2363 24% 6203 24% 3111 1 attached 438 4% 4% 518 2 units 293 3% 1356 3% 389 3 to 4 504 5% 5% 648 5 to 9 385 4% 2313 4% 508 10 to 19 346 4% 4% 456 20 to 49 389 4% 4% 513 50 or more 252 3% 3% 332 Mobile Home 18 0% 39 0% 23 2007-2009 American Community Survey 3-year Estimates. Tenure by Units in Structure. no equivalent table in 2010 Census data. a7 Population distribution from the 2007-2009 American Community Survey 3-year estimates Total Population in Occupied dousing units b}' tenure by units in Structure. no equivalent table in 2010 Census data. " Assuming no change in policy or market conditions proilecting the 2010 percentage of housing units by type lbrward to 2040. \umher al'hUUSing Units CXpeeted to needed in 20 111 accordin-, to the 2010 110LISinu, Needs Model vcrsion 1 -70- Table A7 Continued Unit Number and Distribution by Type 2040 Single Family Units Total 9591 Owner Occupied 1 Unit Detached 5444 Owner Occupied 1 Unit Attached 518 Renter Occupied 1 Unit Detached 3111 Renter Occupied 1 Unit Attached 518 Percentage of Single Family Units 73.99% Multi-Family Units Total 3311 Owner Occupied 5-9 Unit Complex 53 Owner Occupied 20-49 Unit Complex 130 Owner Occupied Mobile Home Units 259 Renter Occupied 2 Unit Complex 389 Renter Occupied 3-4 Unit Complex 648 Renter Occupied 5-9 Unit Complex 508 Renter Occupied 10-19 Unit Complex 456 Renter Occupied 20-49 Unit Complex 513 Renter Occupied 50+ Unit Complex 332 Renter Occupied Mobile Home Units 23 Percentage of Multi-Family Units 25.54% -71- Appendix A: Technical Reports and Supporting Documents City of Ashland, Oregon Comprehensive Plan Periodically, the City may choose to conduct studies and prepare technical reports to adopt by reference within the Comprehensive Plan to make available for review by the general public. These studies and reports shall not serve the purpose of creating new city policy, but rather the information, data and findings contained within the documents may constitute part of the basis on which new policies may be formulated or existing policy amended. In addition, adopted studies and reports provide a source of information that may be used to assist the community in the evaluation of local land use decisions. Chapter II, Introduction and Definitions The following reports are adopted by reference as a supporting document to the Ashland Comprehensive Plan, Chapter Il, Introduction and Definitions. 1. Croman Mill Site Redevelopment Plan (2008) by Ordinance 3030 on August 17, 2010 Chapter IV, Environmental Resources The following reports are adopted by reference as a support document to the Ashland Comprehensive Plan, Chapter IV, Environmental Resources. 1. City of Ashland Local Wetland Inventory and Assessment and Riparian Corridor Inventory (2005/2007) by Ordinance 2999 on December 15, 2009. Chapter VI, Housing Element The following reports are adopted by reference as a support document to the Ashland Comprehensive Plan, Chapter VI, Housing Element. 1. City of Ashland: Housing Needs Analysis (2012) by Ordinance on Chapter VII, Economy The following reports are adopted by reference as a support document to the Ashland Comprehensive Plan, Chapter VII, The Economy. 1. City of Ashland: Economic Opportunities Analysis (April 2007) by Ordinance 3030 on August 17, 2010 Chapter XII, Urbanization The following reports are adopted by reference as a support document to the Ashland Comprehensive Plan, Chapter XII, Urbanization. 1. City of Ashland: Buildable Lands Inventory (2011) by Ordinance 3055 on November 16, 2011. CITY OF -ASHLAND Council Communication December 4, 2012, Business Meeting First Reading of an Ordinance Authorizing.Full Faith and Credit Bonds for Multiple Purposes FROM: Lee Tuneberg, Finance Director, Administrative Services Department, tuneberl@ashland.or.us SUMMARY This ordinance authorizes the City Administrator and Finance Director to take the necessary steps to issue Full Faith & Credit (FF&C) Bonds to finance new projects covering multiple funds and to potentially refinance the 2003 Water Revenue Bonds and the 2004 AFN FF&C Bonds. Even though this issue is a FF&C pledge, revenue from the associated funds will be the primary sources of repayment. Combining financing for new projects with refunding authority on existing bonds saves in interest and bond issue costs. The ordinance limits the total for borrowing and refunding water bonds, including issue costs, to $7 million. The AFN bonds are in addition to that amount and the estimated total par amount for refunding is $12 million to save approximately $700,000. BACKGROUND AND POLICY IMPLICATIONS: The City is actively working on multiple capital projects that have been approved as part of the budget and the capital improvements program (CIP). The majority of these costs cannot be paid for through cash reserves and require some type of borrowing to keep the corresponding funds solvent. The FY 2012-2013 budget anticipated $8 million in borrowing for new projects. Staff has discussed financing alternatives and costs with a financial advisor and bond counsel. Their recommendation is to issue Full Faith & Credit Bonds for new projects and refunding. The reasoning includes: 1. Public works has identified $4.3 million in project costs over the next two fiscal years that are not funded by reserves or grants. Financing is necessary because the cost of these small but numerous projects is too large to be covered by rate revenue. Approximately $2.5 million of the total is for water system improvements. The remainder is for street, storm drain, parks and wastewater projects. 2. The Wastewater Fund has revenues sufficient to pay debt service, but the project amounts are small and combining with other issues saves money. 3. The Transportation and Storm drain fees generate enough cash flow for operations including a small portion for debt service. But financing is necessary to undertake capital improvements. The Storm drain program is the weaker of the two. Issuing revenue bonds for the Street Fund alone would not be feasible because of the high interest rates that would have to be paid. Page 1 of 2 CITY OF ASHLAND 4. The Water Fund is doing better now that a plan has been approved to adjust rates to provide sufficient cash flow and reserves to minimize "spikes" in utility rates caused by financing fluctuations. Adhering to this policy also removes the need to borrow reserves to ensure payment, since reserves are already in place and prospective rate adjustments are sufficient to provide coverage. . 5. This omnibus financing meets the requirements for all $4.3 million in projects, minimizing issuance costs, removing the need to borrow reserves and taking advantage of low rates. 6. The savings from the water refunding is too small to be done by itself, and the savings through the AFN refunding could diminish if rates increase in the near future. Included in the ordinance is $500,000 as a place holder to pay for repairing the Perozzi Fountain in Lithia Park. If the Ashland Parks & Recreation Commission chooses to finance the project this way, they can pledge future receipts from the Food & Beverage tax to pay the annual debt service and avoid presumably higher future issuance costs. The Commission can decline the financing up to the point of sale. After approval of second reading, tentatively scheduled for December 18, 2012, staff will be authorized to proceed with a bond sale that would probably occur in late January or early February, 2013. Staff would report back to Council on the sale by March. FISCAL IMPLICATIONS: The costs of issuing the bonds will be included in the amounts financed. Savings will be recognized in the participating funds on a prorated basis. Debt obligations will be reflected in the corresponding funds in subsequent budgets. Estimated savings at this time are: 1. Reduced issuance costs by combining actions, (a significant savings given that these could be four or more separate issues) 2. Reduced interest expenses through FF&C financing, ( a presumption based upon market experience and difficult to quantify in advance of a sale) 3. $100,000 savings on the water refunding, 4. $700,000 savings on the AFN refunding. Savings from both of the refunding components will be reflected as lower principle and interest payments in future budgets. STAFF RECOMMENDATION AND REQUESTED ACTION: The Finance Director recommends approval of the ordinance. SUGGESTED MOTION: I move approval of the first reading by title only of an Ordinance titled, "An Ordinance Authorizing Full Faith and Credit Bonds for Multiple Purposes". ATTACHMENTS: Draft Ordinance Public Works Financing memo Page 2 of 2 ~r, ORDINANCE NO. AN ORDINANCE AUTHORIZING FULL FAITH AND CREDIT BONDS FOR MULTIPLE PURPOSES WHEREAS, Article 2. Section 1. of the Ashland City Charter provides: 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. WHEREAS, the City is authorized to issue revenue bonds for a public purpose by ORS 287A.150 (the "Act"), which states that those bonds may be payable from all or any portion of the "revenue" of the City, as defined in ORS 287A.001(16); WHEREAS, ORS 287A.001(16) defines "revenue" to mean all fees, tolls, excise taxes, assessments, property taxes and other taxes, rates, charges, rentals and other income or receipts derived by a public body or to which a public body is entitled; WHEREAS, the City may authorize revenue bonds under the Act by nonemergency ordinance, but may not sell the revenue bonds under the Act until the period for referral of the nonemergency ordinance authorizing the revenue bonds has expired; WHEREAS, if a nonemergency ordinance authorizing the revenue bonds is referred, the City may not sell the revenue bonds unless the voters approve the revenue bonds; WHEREAS, the City desires to issue revenue bonds under the Act that are secured by all lawfully available funds of the City and a pledge of the City's full faith and credit and taxing power, as permitted by ORS 287A.315, to finance street, water, wastewater and storm drainage projects and to refinance the City's outstanding 2003 Water Revenue Bonds; WHEREAS, the City is also authorized to issue full faith and credit revenue bonds to refund full faith and credii revenue bonds pursuant to ORS 287A.360 to 287A.375; and WHEREAS, the City may be able to obtain debt service savings by issuing full faith and credit bonds under ORS 287A.360 to 287A.375 to refinance the City's outstanding Ashland Fiber Network Full Faith and Credit Bonds, Series 2004; now, therefore, THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: Section 1. Revenue Bonds Authorized under the Act. The City hereby authorizes the issuance of revenue bonds pursuant to the Act in amounts sufficient to provide up to the Ordinance No. Page 1 of 3 following amounts for each of the following purposes, plus additional amounts sufficient to pay capitalized interest and estimated costs related to those revenue bonds: Purpose Amount Financing for street, water, wastewater and $4.45 million storm drainage projects Refinancing of the City's outstanding 2003 $1.8 million water revenue bonds A. The estimated principal amount of revenue bonds to be sold pursuant to this 0 does not exceed $6.5 million. B. The revenue bonds authorized by this 0 shall be payable from all lawfully available funds of the City and shall be secured by the City's full faith and credit and taxing power within the limitations of Article XI, Sections I 1 and l lb of the Oregon Constitution. C. No bonds authorized by this 0 may be sold and no purchase agreement for any of those bonds may be executed until the period of referral of this nonemergency ordinance has expired and this ordinance takes effect. If this ordinance is referred, the City may not sell the bonds authorized by this 0 unless the voters approve this ordinance. Section 2. Refunding Bonds. The City hereby authorizes the issuance of revenue bonds pursuant to ORS 287A.360 to 287A.375 to refund the City's outstanding Ashland Fiber Network Full Faith and Credit Bonds, Series 2004 (the "AFN Bonds"). A. The refunding bonds authorized by this 0 may be issued in an amount sufficient to refund all or any portion of the AFN Bonds and to pay estimated costs related to those refunding bonds. B. The refunding bonds authorized by this 0 shall be payable from all lawfully available funds of the City and shall be secured by the City's full faith and credit and taxing power within the limitations of Article XI, Sections 11 and 1 Ib, of the Oregon Constitution. Section 3. Delegation. After this ordinance takes effect the City Administrator, the Finance Director or the person designated by the City Administrator or the Council to act on behalf of the City under this ordinance (each of whom is referred to in this ordinance as a "City Official") may, on behalf of the City and without further action by the Council: A. Issue the revenue bonds authorized by 0 or 0 of this ordinance (collectively, the "Bonds") in one or more series, which may be sold at different times. B. Participate in the preparation of, authorize the distribution of, and deem final preliminary and final official statements or other disclosure documents for each series of the Bonds. C. Subject to the limits in this ordinance, establish the final principal amounts, maturity schedules, interest rates, sale prices, redemption terms, payment terms and dates, record, dates and other terns for each series of the Bonds, and either publish a notice of sale, receive bids and award the sale of each series to the bidder complying with the notice and offering the most favorable terms to the City, or select one or more underwriters or lenders and negotiate the sale of any series with those underwriters or lenders. Ordinance No. Page 2 of 3 D. Undertake to provide continuing disclosure for any series of the Bonds in accordance with Rule 15c2-12 of the United States Securities and Exchange Commission. E. Finalize the terms of, execute, and deliver bond declarations or other documents that describe the terms of each series of the Bonds. The bond declarations or other documents may also contain covenants for the benefit of the owners. F. Appoint and enter into agreements with service providers for the Bonds. G. Issue any qualifying series of Bonds as "tax-exempt bonds" bearing interest that is excludable from gross income under the Internal Revenue Code of 1986, as amended, (the "Code") and enter into covenants for the benefit of the owners of those series to maintain the excludability of interest on those series from gross income under the Code. H. Issue any qualifying series of Bonds as "federal subsidy bonds" that are eligible for federal interest rate subsidies but bear interest that is includable in gross income under the Code and take any actions that are required to qualify for those federal interest rate subsidies. 1. Issue any series of Bonds as "taxable bonds" bearing interest that is includable in gross income under the Code. J. Execute any documents and take any other action in connection with the Bonds that the City Official finds will be advantageous to the City. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 2012, and duly PASSED and ADOPTED this day of 2012. Barbara M. Christensen, City Recorder SIGNED and APPROVED this day of 2012. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. Page 3 of 3 CITY OF ASHLAND August 21, 2012 Lee Tuneberg Finance Director City of Ashland RE: FY13 Financial Options Memo This memo is in regards to the financial obligations of the approved Capital Improvements Projects for fiscal year 2013. Street Fund: Willow Wind Pedestrian Signal (FY13) $80,000 Hersey/Wimer Intersection Realignment (FYI 3) $273,728 Railroad Crossing Improvements Hersey and Laurel (FYI 3) $30,000 Miscellaneous Concrete Safety Repairs (FY13) $195,000 Miscellaneous Sidewalk Improvements (FYI 3) $116,250 Miscellaneous Sidewalk and Concrete Improvements (FY14) $180,000 Walker Ave. Sidewalk Improvements (FYI 3) $83,306 Railroad Crossing Improvements Oak St. (FYI 3) $35,000 High school Crosswalk Beacon Improvement $40,000 Slurry Seal Improvement Project (FYI 3) $100,000 Slurry Seal Improvement Project (FY14) $80,000 Street Fund Totals (FY13-14): $1,023,284 Water Treatment: CT disinfection process improvements $85,000 Water Treatment Fund Totals: $85,000 Waster Distribution: Park Estates Pump Station Engineering (FY13) $200,000 Park Estates Pump Station Construction (FY14) $1,800,000 Water Distribution Fund Totals: $2,000,000 CADocuments and Settings\shipletd\Local Settings\Temporary Internet Files\Content.Outlook\3N77SLG9\Public Works Financing Memo Atch2.doc ( 11.27.12) Public Works et Bering Tel: 541488-5587 20 East Main Street Fax: 541-0888006 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us Water Mainline Projects: Waterline Engineering Ivy Lane-Morton St. to end of Ivy Lane (FYI 3) $35,000 Waterline Construction Ivy Lane-Morton St. to end of Ivy Lane FY14) $311,000 Waterline Engineering Ivy Lane-South Mountain (FY 13) $10,000 Waterline Construction Ivy Lane=South Mountain ( FY14) $84,000 Water Mainline Projects Fund Totals: $440,000 Wastewater Collection System: Ashland Creek Trunkline Rehabilitation $458,750 Abandon Nevada St. Pump Station $128,614 Wastewater Collection Fund Totals: $587,364 Storm Drain Fund: Ashland Creek Bank Restoration Project $ 157,500 Storm Drain Fund Totals: $157,500 Total Anticipated amount to borrow $4,293,148 Thanks, Scott A. Fleury Engineering Services Manager City of Ashland Public Works. CADocuments and Settings\shipletd\Local Settings\Temporary Internet Files\Content.Outlook\3N77SLG9\Public Works Financing Memo Atch2.doc ( 11.27.12) of Public Works Engineeering Tel: 541-088-5587 20 East Main Street Fax: 541-088-6006 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.orus