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2014-1104 Council Agenda 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 near 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, acid the length of the agenda. AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL November 4, 2014 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.] 7:00 p.m. Regular Meeting 1. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENTS V. APPROVAL OF MINUTES 1. Study Session of October 20, 2014 2. Executive Session of October 21, 2014 3. Business Meeting of October 21, 2014 VI. SPECIAL PRESENTATIONS & AWARDS 1. NW GIS conference awards for the Ashland Map 2. Presentation from Thrive on the Rogue Valley Food System Network VII. 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] VIII. CONSENT AGENDA 1. Approval of commission, committee, and board minutes 2. Change order for asbestos removal at Ashland Creek Park 3. Approval of an MOU between the City of Brighton Police Department and the Ashland Police Department to join the You have Options national program 4. Downtown Parking Management and Multi-modal Circulation Advisory COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014, CHARTER CABLE WILL BROADCAST LIVE ON CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US Committee Transportation Commission representative 5. Ratification of three-year labor contract with Electrical Union, IBEW Local No. 659 6. Appointment of Richard Newman to the Public Arts Commission 7. Appointment of Bruce Moats, Stephen Gagne, and Ron Parker to the Wildfire Mitigation Commission 8. Approval of a Special Contractor List for sludge hauling to the City of Medford Water Reclamation facility IX. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. Public hearings shall conclude at 9:00 p.m. and be continued to a future date to be set by the Council, unless the Council, by a two-thirds vote of those present, extends the hearing(s) until up to 10:30 p.m. at which time the Council shall set a date for continuance and shall proceed with the balance of the agenda.) None X. UNFINISHED BUSINESS 1. Continued discussion of an ordinance replacing Title 18 Land Use of the Ashland Municipal Code with a reformatted and amended Land Use Ordinance XI. NEW AND MISCELLANEOUS BUSINESS 1. Council adoption of strategic planning goals and objectives 2. AFN Business Plan approval and funding options XII. ORDINANCES, RESOLUTIONS AND CONTRACTS XIII. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS XIV. ADJOURNMENT OF BUSINESS MEETING 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 1). COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014-, CHARTER CABLE WILL BROADCAST LIVE ON CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US Minutes for the City Council Study Session October 20, 2014 Page I of 4 MINUTES FOR THE STUDY SESSION ASHLAND CITY COUNCIL Monday, October 20, 2014 Siskiyou Room, 51 Winburn Way Mayor Stromberg called the meeting to order at 5:34 p.m. in the Siskiyou Room. Councilor Rosenthal, Morris, Slattery, Voisin, Lemhouse, and Marsh were present. 1. Public Input John Ames/818 Palmer/Proposed an amendment to the sign code that created a new subsection 18.96.020.27(a) Decoration and read it aloud from a document he submitted into the record. Roy Laird/419 Willow/Supported Mr. Ames' testimony and the proposed amendment as it would provide a practical and viable solution to the small wall graphic at the Ashland Book Exchange. He did not think it was the government's job to regulate artistic expression. The public was strongly against removing the mural and did not understand why the City required its removal. Jacquie Milikien/609 Oak Knoll Drive/Spoke on the decline of Monarch butterflies. Experts estimated a 90% decline in Monarch butterflies on the west coast over the past decade due to the loss of milkweed habitat through development and removal. She planted milkweed successfully and recently the last of 22 Monarch butterflies flew south. It proved that individuals could make a difference. Designating Ashland as a Bee City USA would help preserve these creatures. Peter Schroeder/572 Ray Lane/Urged Council to support Bee City USA. Becoming a Bee City USA would join place Ashland in the forefront of modern and responsible movement and send a message that Ashland was devoted to preserving the integrity of the environment for humans and bees. As an Entomologist at Southern Oregon University, he noticed firsthand the decline of bumblebees in the region, particularly the western bumblebee, and the very likely extinction of Franklin's bumblebee. Ashland becoming a Bee City USA would not reverse the decline but would help address the awareness and resolve of future Bee City USA cities across the nation to address the real problems bees and pollinators faced. Nancy Appling/684 Liberty Street/Explained her background as a master gardener, volunteer at North Mountain Park and described the pollinator gardens at the park and her experience with her own garden the yielded little due to pollination issues. She suggested a pollinator corridor that started with Ashland and went through the Rogue Valley. Dolly Warden/255 Colvert Road/Explained she was a beekeeper and member of Together for Talent as well as the Pollinator Project of Rogue Valley. She encouraged Council to join Bee City USA and help create a pollinator corridor from city to city so children would have the food they needed in the future. Every third bite taken was due to a pollinator. China currently had people brushing pollination dust onto fruit tree blossoms because of pollinator decline. Laura Ferguson/2253 Hwy 99 North/Explained she was an educator and had a business called the College of Melissae, Center for Sacred Beekeeping and studied bees from historical and scientific perspectives as well as the mythological and spiritual aspects of bees. Pollinators existed in the world for 200,000,000 years and created the world through co-evolution with flowers. Pollinators were the keystone and lynchpin species, everything above and below them will fail if removed. All pollinators needed support and protection. Minutes for the City Council Study Session October 20, 2014 Page 4 of 4 Commissioner Bussell responded to a question on what the Public Arts Commission might have decided had the building owner gone through the process to make the small mural at the Ashland Book Exchange public art. She would not speak for the Commission and shared her personal opinion. The owner had drilled through part of the graphic to install an awning and that had created some damage. It was several years old and she was not aware of the condition. The composition was different because it was painted two different times. Her idea was cut out that section of the wall, display the mural in another place, and patch the wall. Mr. Lohman explained changing the definition of decoration and adding language to the prohibition section of the ordinance that no wall graphic was permitted except for decorations exempted under the definition of decorations would allow decorations in the signage area. Council could also allow a percentage of the signage area for decorations. He distributed a possible definition of decoration proposed by Mr. Laird that both Mr. Lohman and Mr. Molnar altered. He submitted the document into the record. Mr. Molnar commented staff generally had a chronology of attempts at enforcement so at the time the business changed, the City required the owner to meet the code. Council noted the Public Arts Commission had draft mural guidelines and suggested having them bring it to Council for review. Other suggestions would amend the sign ordinance to allow painting signs on walls and include decorations with the signage while retaining historic considerations. Council supported the Public Arts Commission bringing their draft mural guidelines to a future Council meeting. Council would review an ordinance that allowed painting signs on building walls for possible consideration. Council directed staff to bring a definition of decoration within the current limitations of the signage code. Council comment did not want historic building policy to change due to the change in the ordinance. Other comments did not want to restrict sign size while opposing comment wanted to retain size limitations. Staff clarified the City had a local historic building inventory that included contributing buildings with high historic value in addition to the national registry. Additional Council comment supported further review of small wall graphics but did not think the issue demanded the attention it was receiving. Council directed staff not to undertake enforcement on any existing graphics until the issue was resolved. Meeting adjourned at 7:14 p.m. Respectfully submitted, Dana Smith Assistant to the City Recorder Regular City Council Meeting October 21, 2014 Page 1 of 8 MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL October 21, 2014 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, Rosenthal, and Marsh were present. MAYOR'S ANNOUNCEMENTS Mayor Stromberg announced vacancies on the Forest Lands, Wildfire Mitigation, Historic, Public Arts, Transportation, and Tree Commissions. APPROVAL OF MINUTES The minutes of the Study Session of October 6, 2014, Executive Session of October 6, 2014 and Business Meeting of October 7, 2014 were approved with the following clarification to the October 7, 2014 meeting regarding the discussion on Title 18 Land Use: Page 4 of 6, Council agreed to forward an increase in height along with a conditional use permit (CUP). SPECIAL PRESENTATIONS & AWARDS 1. Public Art Commission annual presentation to City Council Margaret Garrington, Chair of the Public Arts Commission presented the annual report to Council. She noted the following projects in her report: • Gateway Island Project • Calle Staircase • Walkway between New Theatre and East Main Street • Public Art Inventory • Newest Public Art Chair Garrington shared the Commission's goals and timelines on current and ongoing projects and identified future public art projects for 2015. In addition, she brought forward a request from the Commission that Council consider revising AMC 2.10.040 "Quorum and Effect of Lack Thereof ' to allow a quorum of more than one-half of the appointed commissioners. The current language requires a quorum of more than one-half of the members including vacant positions. 2. Code Compliance Program - one-year update Code Compliance Specialist Kevin Flynn explained to date code compliance had received over 900 contacts from citizens and partners in city government. Some calls were easily resolved and others took time. The majority of issues was land use, assistance to various city departments, and recently sign code. He addressed the Short-term Vacation Rental Compliance History map noting the program's success and that at this time there were no properties out of compliance. Trending code complaints included the following: • Medical marijuana agricultural grow sites as causing a negative impact due to noxious odor of the plants Mr. Flynn was using the same model for medical grow sites used for short-term vacation rentals, he Regular City Council Meeting October 21, 2014 Page 2 of 8 contacted the property owners and advised them of the ordinance and put them on a cease and abate warning. Because it was a medicinal grow, he was not requesting they remove their plants but asked them not to grow the following year or at the level that caused the strong odor. City Attorney Dave Lohman thought the nuisance ordinance was sufficient for enforcement. • Recreational trailers, utility sheds and other temporary structures being used as long-term dwelling units in backyards and driveways in single-family zones on private property • Increase of mice and rats that some citizens are associating with chicken coops Council expressed appreciation for Mr. Flynn's efforts. PUBLIC FORUM David Wick/2560 Eagle Creek Lane/Asked Council to consider forming a Culture of Peace Commission (CPC). A culture of peace encompassed values, attitudes, traditions, modes of behavior and ways of life as well as how the City could function with practices that were practical and grounded with a return on investment. The community supported this commission. He submitted documents into the record. Irene Kai/2560 Eagle Creek Lane/Noted Ashland was recently designated Google eCity for the second year in a row. It took leadership and vision for the Chamber of Commerce in the 1980s to establish internet. Ashland was innovative with great leadership, vision, and the courage to create their vision. If Council created a Culture of Peace Commission it would lead the citizens to practice the culture of peace and put Ashland forward as a city of peace to the rest of the world. Eric Sirotkin/2016 Ashland Mine Road/Explained he was an attorney and mediator and spoke on creating a Culture of Peace Commission in Ashland. The Commission would bring in people with non-violent communication skills, reconciliation and mediation skills, and compassionate listening. The commission would help confront issues in a way that built a solid, healthy, forward thinking city. He asked Council to place the Culture of Peace Commission on a future agenda for discussion. Councilor Marsh/Lemhouse m/s to add to the agenda a discussion on the timing of Ragland Award. Roll Call Vote: Councilor Voisin, Morris, Lemhouse, Slattery, Rosenthal, and Marsh, YES. Motion passed. Councilor Voisin requested adding a discussion regarding the Culture of Peace Commission to a future Study Session agenda in 2014. CONSENT AGENDA 1. Approval of commission, committee, and board minutes 2. Special procurement for the purchase of Allen-Bradley (brand specific) electrical products and components Councilor Rosenthal/Marsh m/s to approve Consent Agenda items. Voice Vote: all AYES. Motion passed. PUBLIC HEARINGS (None) UNFINISHED BUSINESS (None) NEW AND MISCELLANEOUS BUSINESS 1. Approval of three Request for Proposals (RFP) for architectural designs for downtown improvement projects Engineering Services Manager Scott Fleury explained the RFP projects included: Regular City Council Meeting October 21, 2014 Page 3 of 8 1. Improvements to the planter area at the corner of Winburn Way and North Main Street and the triangle at the corner of Lithia Way and Pioneer Street 2. Landscaping at the Pioneer Street and Lithia Way parking lot 3. The addition of plant material to the Plaza and partial paver replacement Two projects that required additional work and safety improvements involved pushing out the handicap ramp by the Winburn Way planter for higher visibility. The second project was the corner of Lithia and Pioneer. There was an existing driveway where the beautification project would go and staff recommended replacing the driveway apron and improving grade issues on the sidewalk. Mr. Fleury explained the initial estimate did not include the $18,000 in design work. Covey Pardee provided probable construction cost estimates. The engineering cost estimates came after and included professional associated costs. City Administrator Dave Kanner further explained the cost estimates had a 20% contingency that was typical at the design stage and would most likely not be spent. The projects were scaled in a way they could all be done with the available dollars and within budget. Councilor Lemhouse/Rosenthal m/s to approve the RFP for design and implementation for improvements to the planter on the corner of Winburn Way and North Main and the triangle at the corner of Pioneer Street and Lithia Way. DISCUSSION: Councilor Lemhouse emphasized all three were requests for proposal, design questions would happen later. Councilor Rosenthal concurred. Councilor Voisin would not support the RFPs, these were public spaces, and Council needed to hear from the public beyond the special interest of the Downtown Beautification Committee. She also wanted the Tree Commission involved for tree selection, and an arborist and staff from the Conservation Department involved as well. Councilor Voisin motioned to amend each RFP that 1) a public forum be required for each project, 2) that the Tree Commission be consulted for trees only, that the City hire an arborist to oversee all construction especially around the native cedar on North Main Street and 3) that Julie Smitherman be consulted for drought tolerant shrubs and plants for all three projects. Motion died for lack of a second. Mayor Stromberg objected to the characterization of the Committee as representing special interests. He appointed the members to work on behalf of all the citizens. Councilor Voisin clarified the members were stakeholders. Councilor Lemhouse called for a point of order and Mayor Stromberg ruled in his favor. Councilor Voisin motion to challenge the decision made on the point of order. Motion died for lack of a second. Continued discussion on amended main motion: Councilor Marsh supported the main motion, both areas in the REP needed to become more pedestrian friendly. Roll Call Vote: Councilor Lemhouse, Marsh, Morris, Slattery, and Rosenthal, YES; Councilor Voisin, NO. Motion passed 5-1. Councilor Lemhouse/Slattery m/s to approve the RFP for design work and implementation of landscape improvements to the parking lot at the corner of Pioneer Street and Lithia Way. Roll Call Vote: Councilor Lemhouse, Marsh, Morris, Slattery, and Rosenthal, YES; Councilor Voisin, NO. Motion passed 5-1. Councilor Lemhouse/Slattery m/s to approve the RFP for design work and implementation of improvements to the Plaza. Councilor Marsh/Slattery m/s to amend the motion to delay consideration of the RFP until after the Regular City Council Meeting October 21, 2014 Page 4 of 8 Study Session on December 2, 2014. DISCUSSION: Councilor Marsh explained Council would meet to discuss what kind of planning process they wanted for the Plaza at the December 2, 2014 Study Session. Councilor Slattery agreed adding it would allow public input. Councilor Marsh withdrew her amendment. Councilor Lemhouse withdrew his motion. Councilor Marsh/Slattery m/s that consideration of the RFP for design work on the Plaza improvements be deferred until after the Study Session on December 2, 2014. DISCUSSION: Councilor Rosenthal would not support the motion and did not think the delay was necessary. Roll Call Vote: Councilor Lemhouse, Marsh, Morris, and Slattery, YES; Councilor Voisin and Rosenthal, NO. Motion passed 4-2. 2. Ad-Hoc Recycle Center Committee recommendations for the Recycle Center, waste reduction and recycling Management Analyst Adam Hanks explained the ad-Hoc Recycle Center Committee made the following recommendations: • Creation of a sticker program for curbside recycling The Committee recommended approving and implementing this program. Councilor Morris/Lemhouse m/s to approve the creation of a sticker program for curbside recycling. Roll Call Vote: Councilor Morris, Marsh, Rosenthal, Voisin, Slattery, and Lemhouse, YES. Motion passed. • Remove comingle recycle collections from the Recycle Center The Committee did not recommend approving this option because the savings gained did not outweigh overall objectives of waste diversion options for the public. Councilor Rosenthal/Slattery m/s to continue comingle recycle collections at the Recycle Center. DISCUSSION: Councilor Slattery explained this was an important aspect to the Recycle Center and Ashland was doing something good for the environment by retaining the service. Roll Call Vote: Councilor Morris, Marsh, Rosenthal, Voisin, Slattery and Lemhouse, YES. Motion passed. • Change fee methodology for Recycle Center surcharge The Committee recommended maintaining the existing monthly flat fee on Recology customer bills. Recology received approximately 12-15 calls regarding the $1.60 surcharge on customer bills. Establishing a donation system raised operational concerns. The Committee spent considerable time on charging a fee to use the Recycle Center. It was problematic on several levels that included social equity issues, cash handling, paying someone to collect the money. In the end the $1.60 was successful in capturing costs. The Recycle Center was a part of the culture of Ashland and that people utilized it without paying fell under the category of providing a good service for the planet. The Committee agreed the Recycle Center needed to evolve and was open to exploring options in the future. Councilor Rosenthal/Slattery m/s to maintain the existing monthly flat fee on Recology customer bills. Councilor Marsh/Lemhouse m/s to amend motion to direct staff to continue discussions with Recology regarding a donation system. DISCUSSION: Councilor Marsh wanted the committee to determine a way for people to understand there was a cost to the recycling service Ashland was offering and provide them with an opportunity to contribute. Roll Call Vote: Councilor Morris, Marsh, Rosenthal, Slattery, and Lemhouse, YES; Voisin, NO. Motion passed 5-1. Regular City Council Meeting October 21, 2014 Page 5 of 8 Continued discussion on amended main motion: Councilor Lemhouse struggled with the idea that some people did not have to pay for a service others paid for. Attaching a fee to the electric or water bills seemed fairer. Roll Call Vote on main motion: Councilor Morris, Marsh, Rosenthal, Voisin, Slattery, and Lemhouse, YES. Motion passed. • Expand non-curbside collections materials available to reuse/recycle at the Recycle Cent The Committee recommended approving and bringing back results to the Council for final implementation approval with review by the Conservation Commission. Councilor Marsh/Lemhouse m/s approve the Committee recommendation and direct staff to bring back results to the Council for final approval. Roll Call Vote: Councilor Morris, Marsh, Rosenthal, Voisin, Slattery, and Lemhouse, YES. Motion passed. • Develop and implement a waste reduction and recycling education and outreach program for the community Committee recommendation to approve and bring back results to the Council for final implementation approval with review by the Conservation Commission. Councilor Lemhouse/Rosenthal m/s to accept the Committee recommendation regarding the development and implementation of a waste reduction and recycling education and outreach program and bring it back to Council for final implementation approval. DISCUSSION: Councilor Lemhouse strongly supported education commenting that it helped change behavior. Councilor Rosenthal thought Ashland had the opportunity to be an innovator in this regard. Roll Call Vote: Councilor Morris, Marsh, Rosenthal, Voisin, Slattery and Lemhouse, YES. Motion passed. • Explore a pilot program or system to offer pre and/or post consumer food waste diversion options Committee recommendation was approve and bring back results to the Council for final implementation approval with review by the Conservation Commission. Councilor Rosenthal explained post food waste handling made up to 30% of the waste stream. Councilor Rosenthal/Slattery m/s to explore a pilot program or system to offer pre and/or post consumer food waste diversion options and bring back results to Council for final implementation or approval. DISCUSSION: Councilor Morris thought this was a recommendation that could bring a large return. Roll Call Vote: Councilor Morris, Marsh, Rosenthal, Voisin, Slattery, and Lemhouse, YES. Motion passed. • Update Ashland Municipal Code 9.22 - Opportunity to Recycle The Committee recommended approving and bringing back results to Council for final implementation approval with review from the Conservation Commission. Councilor Marsh/Rosenthal m/s to instruct staff to investigate updates to the Ashland Municipal Code 9.22 - Opportunity to Recycle and report to Council for final approval and implementation. DISCUSSION: Councilor Marsh noted the intention was making recycling available to everyone in the community and sometimes that was missed in multifamily developments. Council Rosenthal added it had been 22 years and it was time to review the code. Roll Call Vote: Councilor Morris, Marsh, Rosenthal, Voisin, Slattery, and Lemhouse, YES. Motion passed Council directed staff to bring back the report from Recology on financial incentives in the payment structure Regular City Council Meeting October 21, 2014 Page 6 of 8 for trash services along with the other items requiring approval by Council. Mayor Stromberg moved the agenda item regarding the Approval of a resolution titled, "A resolution in support of fossil fuel divestment" under Ordinances, Resolutions, and Contracts from #2 to #1. 3. Discussion of deer education proposals City Administrator Dave Kanner explained the agenda item was a result of a citizen testifying under Public Forum during the September 16, 2014 Council meeting who requested the City increase public awareness about living with deer. Council could limit the discussion to education or look into mitigation that had limited options. Staff had received a small amount of emails from citizens that wanted the City to take some form of mitigation. Amy Felmley/187 Gresham Street/Explained she had lived in Ashland for a year and spent four months researching deer after an attack she experienced in her yard. She did not expect the City to take the lead on education but wanted information made public on what to do when you encounter a deer while walking a dog and how to respond when being chased by a deer. The City newsletter fell short providing that information to the public and the links mostly discussed fences. She thought the perception of deer being harmless should change to potentially dangerous. She clarified she was not talking about culling deer or sterilization at this time but wanted deer identified as dangerous removed. She had discovered the Oregon Department of Wildlife would occasionally grant a permit to remove a specific deer. Councilor Marsh/Slattery m/s to suspend rules to allow questions. Voice Vote: all AYES. Motion passed. Ms. Felmley thought the City website was the appropriate place for new residents to learn of deer being potentially dangerous but the site did not offer information on protecting oneself from an attack. Mayor Stromberg added citizens signing up for utilities presented another opportunity to inform citizens of potential harm from deer. Ms. Felmley went on to read steps a person could take if attacked by a deer from a document she submitted into the record. Mayor Stromberg reinstated Council rules. Council directed staff to bring back an educational campaign on dealing with deer and wildlife in general using the website, City Source, providing information when a citizen signed up to receive utilities, and research possible partnerships in the community. Council suggested a television program with experts talking directly to the public, or a Town Hall meeting on the topic. Council comments regarding mitigation wanted to know the options and other comment did not want to pursue mitigation. ORDINANCES, RESOLUTIONS AND CONTRACTS 1. Approval of a resolution titled, "A resolution in support of fossil fuel divestment" City Recorder Barbara Christensen worked with Southern Oregon Climate Action Now (SOCAN) who asked Council to support fossil fuels divestment by requesting the Oregon Short Term Board (OSTB) and PERS Board (Public Employee Retirement System) not invest in fossil fuel companies. The resolution would not make any changes to the City investment policy. Tamsin Taylor/594 Great Oaks Drive/The resolution in support of fossil fuel divestment provided an opportunity for Council to request the OSTB and PERS Boards review and consider divestment. The resolution was only a recommendation. Divestment would not result in lower returns. Diana O'Farrell/929 Mountain Meadows/Explained the recent drought and reduced snow packs were consistent with global warming models. If the economic plans of fossil fuel corporations continued unabated, the climate changes would get worse. She asked the City to join others and take a stand to support divestment and encourage fossil fuel corporations to adjust their practices. Regular City Council Meeting October 21, 2014 Page 7 of 8 Reverend Thomas Buechele/829 Boulder Creek Lane/Governments at all levels were under strong corporate voice promoting maximization of short term profits in relationship to the whole issue of oil fossil fuels. Intergenerational justice demanded that people take whatever actions possible at this time to assure future generations were able to enjoy a livable, hospitable, and beautiful planet. He urged Council to support the resolution. Councilor Slattery/Voisin m/s to approve Resolution #2014-19. DISCUSSION: Councilor Slattery supported the resolution. Councilor Voisin commented SOCAN had researched the resolution and the City Recorder did due diligence for the City. By supporting this resolution, Ashland was joining hundreds of cities and organizations who were taking the cause of the climate crisis seriously. Councilor Morris supported the motion but questioned how to achieve the goal. The real goal should be reducing reliance on fossil fuel. Councilor Lemhouse would support the motion and appreciated the changes SOCAN made to the resolution after Council expressed concerns. This was an active step but people should do more than resolutions to change the issue. Councilor Rosenthal thought it might be easier to divest from coal. Councilor Marsh noted that Council chose as one of its five priorities for the next five years to develop and implement a climate and energy plan. This was a step in that direction. Roll Call Vote: Councilor Morris, Marsh, Lemhouse, Voisin, Rosenthal, and Slattery, YES. Motion passed. NEW AND MISCELLANEOUS BUSINESS-continued 4. Plaza replacement tree recommendations Assistant Planner Michael Pina explained two arborists on the Tree Commission thought the Red Oak might have more invasive root systems than the Bur Oak. Both trees produced acorns. The Tree Commission had discussed the potential risk to roots due to overwatering. To Mr. Pina's knowledge, the Parks and Recreation Department had not participated in the tree selection. City Administrator Dave Kanner had talked to various people in the Parks and Recreation Department and no one had a strong recommendation on the type of tree. The Red Oak was slightly smaller in base and diameter height than the Burr Oak and produced bright red leaves in the fall. The Bur Oak turned a yellowish brown in the fall. Councilor Voisin/Marsh m/s to select a Red Oak to replace the recent deceased tree in the downtown Plaza. DISCUSSION: Councilor Voisin thought the Red Oak was more appropriate and a better fit due to the size of the Plaza than the Bur Oak that could grow large. Councilor Rosenthal would not support the motion. He disagreed with the tree choice, was concerned the Parks and Recreation Department was not consulted on the choice, and thought more examination was needed. Councilor Lemhouse agreed with Councilor Rosenthal and did not think the Council should be picking a tree. He trusted staff would make the right decision. Councilor Slattery thought the Parks Commission needed to be involved in the choice and would not support the motion. Councilor Morris would vote against the choice as well. He had hoped for a native tree instead of an eastern one. Mr. Pina explained a native tree would not do as well given the irrigation in the area. The Tree Commission made the tree selections just prior to Michael Black being hired as the new Parks and Recreation Director. Mr. Pina had a discussion with Mr. Black regarding the choice and he was fine with the selection. Roll Call Vote: Councilor Slattery, Voisin, Marsh, Lemhouse, Morris, and Rosenthal, NO. Motion died. Council directed staff to consult with the Parks and Recreation Department, follow appropriate protocol with the Parks Commission, and make a decision on behalf of the Council and not bring the decision back to Council unless the selection did not include either the Red Oak or Bur Oak. ORDINANCES, RESOLUTIONS AND CONTRACTS-continued 2. Approval of a resolution titled, "A resolution authorizing the City of Ashland to provide a city building for a winter shelter two nights per week through April, 2015" Regular City Council Meeting October 21, 2014 Page 8 of 8 City Administrator Dave Kanner explained this was the same resolution adopted over the past two winters allowing the use of Pioneer Hall as winter shelter two nights a week staffed by volunteers from the Rogue Valley Unitarian Universalist Fellowship (RVUUF) and Temple Emek Shalom. Councilor Marsh did not want to allow children in the shelter and wanted to delete the reference to children under Section 2 Terms and Conditions (g). Mr. Kanner clarified volunteers' designated separate sleeping areas for men and women but did not enforce it if the guest was uncomfortable with that sleeping arrangement. Councilor Marsh/Lemhouse m/s to approve Resolution #2014-20 and delete from Section 2 (g) "Appropriate signage must be displayed that warns against children being left alone." DISCUSSION: Councilor Marsh thought it was a terrific program and a great way to leverage a City resource with volunteers. Roll Call Vote: Councilor Voisin, Marsh, Rosenthal, Slattery, Morris, and Lemhouse, YES. Motion passed. 3. Approval of a resolution titled, "A resolution consenting to the transfer of control of the cable franchisee Falcon Cable Systems Company 11, L.P. to Comcast Corporation, with conditions" City Attorney Dave Lohman explained the only basis for challenging a transfer like this was if the City had reasonable legal, technical, and financial capability questions about Comcast. Staff had hired a telecommunications attorney to ensure the City asked for everything possible in terms of conditions. Mr. Lohman received a call from Charter asking the City to remove item (2) under Section 2 Conditions to the Transfer of Control because it would limit their due process rights under the existing franchise. Councilor Slattery/Lemhouse m/s to approve Resolution #2014-18 and delete under Section 2, item 2. DISCUSSION: Councilor Rosenthal would not support the motion and expressed serious concern regarding the level of customer service from Comcast. Mr. Kanner clarified the City could charge Comcast 5% of gross revenues on cable service. The City could not assess a franchise fee on internet and data services. The 5% charge was a limitation set by federal law. Roll Call Vote: Councilor Slattery, Lemhouse, Morris, Marsh, YES; Councilor Rosenthal and Voisin, NO. Motion passed 3-2. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS Councilor Marsh suggested removing the State of the City from the Council meeting and making it an event that included the presentation of the Ragland Award. Councilor Marsh/Slattery m/s to award the Ragland Award at the annual State of the City address in January. Voice Vote: all AYES. Motion passed. Councilor Lemhouse expressed concern moving agenda items during the meeting and preferred adhering to the printed agenda established prior to the meeting. ADJOURNMENT OF BUSINESS MEETING Meeting adjourned at 10:25 p.m. Barbara Christensen, City Recorder John Stromberg, Mayor Ann Seltzer From: Rob Hines [robhines@peakdemocracy.com] Sent: Wednesday, October 29, 2014 11:41 AM To: robhines@peakdemocracy.com Subject: Administrator Changes - Please Respond If Needed Dear Client - Right now, every time you want to add (or remove) an Open Town Hall adminstrator, you need to ask Peak Democracy to do that for you. On Friday, we will release a new feature called "multi-level admins" that enables you to add or remove administrators yourself, without asking Peak Democracy to do it for you. Multi-level admins actually provides you with two different admin levels: "Portal Admins" and "Topic Admins". You will probably want to grant Portal Admin privileges to one or two employees. As Portal Admins, those people will be able to grant or revoke Topic Admin privileges to other employees. Multi-level admins one will require you to take action. Please, tell your Peak Democracy Public Engagement Manager who should receive Portal Admin privileges. If we don't hear from you, all your current admins will receive Topic Admin privileges. *Note, changes can be made anytime! While you may want to discuss this with us before the weekend, letting us know after the weekend works well, too. Portal Admins will be able to do everything they used to do + manage some new stuff- • the 'Topic Admin' list • the Portal Name • whether new topics will allow `Name Not Shown' by default Topic Admins can do everything that Portal Admins can, except for settings related to: • Carousel • Forums • Pages • Announcements • Themes • Terms • The new stuff above. Cheers, Rob 510 666 6931 PEAK DEMOCRACY w. The ICMA primaa~ provider for online civic engagement services i Minutes for the Conservation Commission September 24, 2014 Page] of 3 MINUTES FOR THE ASHLAND CONSERVATION COMMISSION Wednesday, September 24, 2014 Siskiyou Room, 51 Winburn Way 1. Call to Order Chair Marni Koopman called the meeting to order at 6:04 p.m. in the Siskiyou Room. Commissioners Mark Weir, Thomas Beam, Risa Buck, Jim McGinnis, Jim Hartman, Roxane Beigel-Coryell, and Brian Sohl were present. Councilor Rich Rosenthal was present. Commissioner Shel Silverberg was absent. 2. Announcements Salmon Fest will occur on October 4. Buck encourages youth participant in "Slam for Salmon" event. 3. Public Forum Christina LeFever from the Rogue Valley Pollinator Project came to the group to request support for their upcoming request to Council to make Ashland a Bee City, USA. Talent recently became the 2nd Bee City and they have also been working on getting Rogue River and Jacksonville to join. Explained that Bee City, USA projects and support are not just for bees, but are for all pollinators. Laura Ferguson teaches bee-keeping and would also like the Commission to offer their support for the Bee City, USA request. She spoke about the various pollinators and how they work within, particularly, our food production system. She would like the Commission to provide up to $1,000 in financial support for their projects. Kat Gould gave an update on recent projects at Helman School. She has started the process for idle-free zones but would encourage the commissioners to attend School Board meetings to see if they can make additional progress in their own schools. Is working with the Chamber of Commerce to create one single notice regarding after-school programs, rather than have each group individually send out notices to all students. Reminded the group to continue to encourage the Council to proceed with fossil-fuel divestment. Camilla Thorndike and Natalie Mitchell spoke about an upcoming state-wide campaign for carbon pricing. They are working to change the policy of under-priced fossil-fuels. They believe that this effort will succeed where others have failed because it is revenue-neutral. They estimate $900 will go back to each citizen to off-set the rise in prices on all fossil fuels. The Group had a discussion for clarification with each of the presenters and asked that discussions about Bee City USA and the Carbon Tax be placed on the next agenda. McGinnis recommended that info, particularly for the carbon tax, go to the sustainability sub-committee so they can make a recommendation to the group for the next meeting. 4. Reports/ Presentations/ Updates Council Update - Rosenthal thanked Beigel-Coryell and McGinnis for their presentation at the last Council Study Session. Thought it was well-done, even though Council had questions about Minutes for the Conservation Commission September 24, 2014 Page 2 of 3 the use of the STAR framework. Thought it was positive that Council recognized the need for more Conservation staff. Rosenthal will be out of town for the next Commission meeting. The group agreed that he should extend an invitation to Councilor Morris to sit in on the commission in his place. City Conservation & Operations - Hanks stated water levels in the reservoir are in good shape after the rain and continued citizen conservation. Conservation staff found an opportunity to partner with Public Works on the upcoming N. Mountain street project. They will be removing the grass in the median and replacing with low-water plantings. Additionally, the Mountain Meadows area is working with the City to remove some of their grass areas to reduce water usage. North Mountain Nature Center will be installing an artificial turf demo project in an area not typically successful at growing grass. Will be good place for educational signage. Hanks is working with the new Park's Director on including Parks in the upcoming city facilities water audit. Lastly, Julie Smitherman is working with a group who is doing some information sessions regarding lower water use grass seeds. They will be working with the School District next year to test some of the new seeds. BYOB project - Hanks and Buck would like the sub-committee to meet to discuss the next steps in getting the word out, as the deadline fast approaches. The sub-committee decided to meet on September 29th at 4:00 p.m. in the Siskiyou Room. Ashland School District - Hartman gave update on progress of the roof project. Stated there has been interest from other groups due to low-watering. He is working with Brent Thompson to improve things at the football field, including needing more recycling containers and adding announcements as part of the game. The group thanked him for writing the composting article which will be in an upcoming Sneak Preview. Ad-hoc Recycle Center Committee - Beam and Beigel-Coryell gave update on the recommendation which will be presented to Council. Group discussed financing, and that charges will require further discussion. The committee feels good about the end result of their work. Weir/Beam m/s to endorse the memo, with the noted changes, going to Council. Discussion: group discussed the minor differences between the memo in the packet and the version going to Council. Voice Vote: All Ayes. Motion passes. Sustainability Sub-Committee (Council study session re-cap) - The group discussed the parts of the meeting which left them confused and how they will use the opportunities in the Climate & Energy section of the STARR Framework to take away the fear or lack of understanding. The group was very pleased that Council clearly acknowledged the need for additional staff. Group discussed whether the Sustainability Sub-Committee should be re-named the Climate and Energy Sub-Committee to align more with what Council asked of them. Beam/Weir m/s to rename the Sustainahility Sub-Committee to the Climate and Energy Minutes for the Conservation Commission September 24, 2014 Page 3 of 3 Sub-Committee. No discussion. Voice Vote: All Ayes. Motion Passes. Group discussed whether the subcommittee needed a change in membership now that the focus had changed. Agreed it was unnecessary. The group discussed the next steps, which includes a response from the commission to Council to get as much clarification as they can. The sub- committee will work on that at their next meeting. Leaf Bag Program & Compost Classes - Buck thanked the group for leading the compost classes. She requested that on the January commission agenda there be time for the group to determine the schedule for next year. She also thanked the group for helping with their work in the Leaf-Bag Program. 5. Old Business Commission Goals - Group discussed some of the minor work changes needed. They will discuss further assignments and timelines for the goals at the next commission meeting. Sneak Preview Column - Hartman informed the group it will likely be called, "Conservation Corner." Due to deadlines and the need for both the commission and the city to give approval to articles before they are submitted, the committee needs to be working at least two months out from publication. They determined the following topics: • November edition (due Oct 23) - BYOB, author to be determined at the sub-committee meeting. • December edition (due Nov 23) - Holiday Wrapping, written by Beam • January edition (due late Dec) - Waste Prevention Resolutions, written by Buck The article authors will bring their articles to the meeting one month before the due date for the group and the City to give a thumbs up or make required changes. The group is to send topic ideas and possible months for publication to Hanks, who will start a "master calendar" to be further discussed at the October meeting. Weir/Beam m/s to accept Hartman's article as-written. No discussion. Voice Vote: All Ayes. Motion Passes. 6. New Business Cigarette Butt Collection - The city has a plan to purchase and install (attach to light poles) collectors with "sponsored by" or "cleaned up by" which ever business takes on that particular collector (typically the bar or restaurant nearest). Weir/ Beigel-Coryell m/s to move forward with this project. No discussion. Voice Vote: All Ayes. Motion Passes. Meeting adjourned at 8:02 p.m. Respectfully submitted, Diana Shiplet Executive Secretary CITY OF -ASHLAND ASHLAND PLANNING COMMISSION REGULAR MEETING MINUTES September 9, 2014 CALL TO ORDER Chair Richard Kaplan called the meeting to order at 7:05 p.m. in the Civic Center Council Chambers, 1175 East Main Street. Commissioners Present: Staff Present: Troy J. Brown, Jr. Bill Molnar, Community Development Director Michael Dawkins Maria Harris, Planning Manager Richard Kaplan Amy Gunter, Assistant Planner Debbie Miller April Lucas, Administrative Supervisor Melanie Mindlin Tracy Peddicord Lynn Thompson Absent Members: Council Liaison: None Mike Morris, absent ANNOUNCEMENTS Community Development Director Bill Molnar announced OSF is holding an open house on September 22 to consider changes to the brick area outside the theater. He also noted the August 22, 2013 Transportation Commission minutes that were handed out and commented on the Commission's review of potential improvements to North Mountain Ave. He clarified the City's Public Works Department has been evaluating this area and there are a number of recommendations from the Transportation Commission reflected in the minutes. Mr. Molnar stated several of the improvements have already been completed and the Public Works Department is scheduled to resurface the area in early November and will re-stripe the road at that time. He added rumble strips are being considered as well. AD-HOC COMMITTEE UPDATES NormaiNeighborhood Plan Working Group: Commissioner Kaplan announced the next meeting will be on September 18 and a panel of representatives has been asked to provide testimony to the Working Group. He provided a summary of the discussion topics from the prior meetings which included: open space and conservation areas, the railroad crossing and East Main Street improvements, financing options, density, and the street network. Commissioner Kaplan noted an alternate plan has been presented that shifts the density to the south by the railroad tracks, provides moderate density in the interior, and retains the neighborhood serving commercial along East Main Street. He stated this plan would reduce the overall density and therefore the City would need to determine where they will make up the difference. Mr. Molnar stated if the Council shows interest in the revised plan, he will advocate that the alternate plan come back to the Planning Commission for review and comment. Downtown Beautification Committee: Commissioner Dawkins provided an overview of the approved improvements, including: historical markers, a new "Welcome to Ashland" sign, replacing tree wells, replacing street lights with LED lights and retrofitting them with water for hanging baskets, adding a sculpture near Earthly Goods, and improving the landscaping at the corner of Winburn Way and North Main and the parking lot at the corner of Lithia Way and Pioneer Street. Ashland Planning Commission September 9, 2014 Page 1 of 4 CONSENT AGENDA A. Approval of Minutes 1. August 12, 2014 Regular Meeting. Commissioners Brown/Dawkins m/s to approve the Consent Agenda. Voice Vote: all AYES. Motion passed 5- 0. [Commissioners Mindlin and Thompson abstained] PUBLIC FORUM No one came forward to speak. UNFINISHED BUSINESS A. Approval of Findings for PA-2014-00710,143 Nutley. Ex Parte Contact Commissioner Dawkins stated he went by the site again. No ex parte contact was reported. Commissioners Dawkins/Brown m/s to approve the Findings for PA-2014-00710. Voice Vote: all AYES. Motion passed 5-0. [Commissioners Mindlin and Thompson abstained] B. Approval of Findings for PA-2014-00967, 572-582 Fair Oaks. Commissioner Dawkins stated he went by the site again. No ex parte contact was reported. Commissioners Miller/Dawkins m/s to approve the Findings for PA-2014-00967. Voice Vote: all AYES. Motion passed 5-0. [Commissioners Mindlin and Peddicord abstained] TYPE II PUBLIC HEARINGS A. PLANNING ACTION: #2014-01354 & #2014-01355 SUBJECT PROPERTY: 1016 Clear Creek Drive APPLICANT: Rick and Judy Lindeman and Urban Development Services, representing Mark Newberger Exempt Trust DESCRIPTION: A request for modifications of the Aleph Springs Subdivision approval (PA #2008-00183) which involved: a 12-lot, 15-unit Performance Standards Subdivision; Site Review approval for a two- story, six-unit residential building; an Exception to Street Standards; Tree Removal Permits; and Lot Line Adjustments. The modifications requested include: 1) partitioning the property at 1016 Clear Creek Drive into to two separate single family residential parcels; 2) Conditional Use Permit and Site Review to allow for an accessory residential unit approval for one of the newly created parcels. COMPREHENSIVE PLAN DESIGNATION: Single Family Residential; ZONING: R-1-5; ASSESSOR'S MAP: 391E 09AA; TAX LOTS: 1608 and 1702. Commissioner Kaplan read aloud the public hearing procedures for land use hearings. Ex Parte Contact Commissioner Kaplan stated he made a site visit and knows the applicants, but was not aware of the details of their application and has not discussed it with them. No ex parte contact was reported. Staff Report Assistant Planner Amy Gunter presented the staff report. She explained the Aleph Springs subdivision was originally approved in 2006 and came back in 2007 with modifications; final plan approval occurred in 2008. Ms. Gunter stated the applicant is requesting to modify the 2008 approval and take one of the lots originally approved for six units and create two single family lots. Ms. Gunter reviewed the site and stated the proposed density complies with the subdivision requirements and both lots meet the minimum lot size requirements. She added the street improvements have already been completed and Ashland Planning Commission September 9, 2014 Page 2 of 4 stated the majority of the infrastructure has already been installed. Ms. Gunter reviewed the proposed conditions for approval and noted the typographical error in the trash enclosure condition and stated this would be corrected. She added staff will also add a condition that required the flag drive to be signed as 'no parking'. Ms. Gunter concluded her presentation and stated the application meets all criteria and staff is recommending approval. Applicant's Presentation Mark Knox/485 W Nevada and Rick Linderman/550 W Nevada: Mr. Knox stated they have no issues with the two conditions mentioned by staff. He clarified only one of the lots will develop immediately and voiced his appreciation for the applicant's willingness to provide a path to the Havarah. Mr. Knox stated this application meets the coverage, density, and trip generation requirements as well as all of the items laid out in the original subdivision approval. He asked for the Commission's approval and stated they are available to answer any questions they may have. Public Testimony Mark Decker/998 Clear Creek/Stated this will be his new neighbor and stated he has reviewed the plan and supports this proposal. Mr. Decker noted he is on the board of the Homeowners Association and stated reducing the density is the right thing to do. He voiced his support for keeping the path to the Havarah and stated the HOA supports this application. Commissioners Kaplan closed the hearing and the record at 800 p. m. Deliberations & Decision Commissioner Brown noted a typographical error on condition 4(b) and stated the word "on" in the first sentence should be removed. Commissioner Miller voiced concern with the industrial style design of the proposed residence and stated it seems incompatible with the neighborhood. Commissioners Dawkins/Peddicord m/s to approve Planning Action #2014-01354 and #2014.01355 with the conditions of approval recommended by staff. Roll Call Vote: all AYES. Motion passed unanimously. OTHER BUSINESS A. Identification of ULUO Key Amendments - Council Request. Mr. Bill Molnar explained the City Council held a meeting on the Unified Land Use Ordinance (ULUO) and while it was noticed as a public hearing and first reading, the Council determined they needed another meeting to review the key amendments more thoroughly before they took a vote on the ordinance. He stated Mayor Stromberg asked each city councilor to identify the items they felt needed to be discussed more in depth and asked the Planning Commission to provide a list as well. Mr. Molnar clarified these should be items the Commission feels would be of most interest to the community. Planning Manager Maria Harris provided a brief overview of the Staff Memo and explained she grouped the key amendment suggestions into two categories: conserving land use and resources, and improving the planning application process. The Commission reviewed the key amendment list contained in the Staff Report and the full amendment matrix, and offered their suggestions for which items should be included on the list to the Council. Commissioner Brown asked if the Commission could have additional time to analyze the full amendment matrix and provide recommendations for key amendments at a future meeting. Staff indicated due to the Council's meeting timeline, there is not adequate time to bring this item back for further discussion. Commissioner Mindlin stated the Commission has spent a lot of time working on this and believes if there was something substantive missing from the list they would have remembered what it was, and feels the Staff Report accurately captures the more significant items. The Commission continued Ashland Planning Commission September 9, 2014 Page 3 of 4 their discussion of potential key amendments and agreed to recommend the following items for further City Council review: • Allow cottage housing in single family residential zones • Add solar orientation standards for street and lot layout in residential zones • Increase the affordable housing density bonus and maximum density bonus in multi-family zones • Change in approval process for accessory residential units • Change in side yard setback abutting residential zones • Increase in allowed building height in commercial zones • Building separation in large-scale non residential development • Accessory residential unit review process • Change in threshold for public hearing for non-residential basic site review applications In addition to putting forth the list of amendments, staff was asked to elaborate in their memo to the City Council the policy objectives behind the recommended changes, and to provide both the existing and proposed code language. ADJOURNMENT Meeting adjourned at 9:00 p.m. Submitted by, April Lucas Administrative Supervisor Ashland Planning Commission September 9, 2014 Page 4 of 4 CITY OF ASHLAND ASHLAND PLANNING COMMISSION STUDY SESSION MINUTES September 23, 2014 CALL TO ORDER Chair Richard Kaplan called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers, 1175 East Main Street. Commissioners Present: Staff Present: Michael Dawkins Bill Molnar, Community Development Director Richard Kaplan Maria Harris, Planning Manager Debbie Miller April Lucas, Administrative Supervisor Melanie Mindlin Lynn Thompson Absent Members: Council Liaison: Troy J. Brown, Jr. Mike Morris Tracy Peddicord ANNOUCEMENTS Community Development Director Bill Molnar announced the open house for the Plaza West Building located on Lithia Way and reminded the commissioners to refrain from ex parte if they attend. Commissioner Mindlin noted the recent Planning Commissioners Journal article on permaculture and encouraged the commissioners to read it. PUBLIC FORUM No one came forward to speak. PRESENTATION A. RVTD Transportation Demand Management Presentation by Edem Gomez, TDM Planner. TDM Planner Edem Gomez provided a short presentation that addressed the following topics: • Definition of TDM (Transportation Demand Management). • RVTD's bus pass programs, including U-pass and Fare Share. • RVTD's yearly highlights. • RVTD's Rideshare program. • RVTD's Drive Less Connect program. • RVTD's system map and available routes. • Trip planning and real time transit program. Mr. Gomez highlighted RVTD's mobile app, which allows users to see in real time where on the route their bus is located, when the bus will arrive, and how far behind schedule it may be. • Statistics on Ashland's downtown route stations, which are the most used stations in the valley. • TDM next steps. • The individualized market campaign for Southern Oregon University that is funded by ODOT. • RVTD's bus rapid transit program. Ashland Planning Commission September 23, 2014 Page 1 of 4 Mr. Gomez concluded his presentation and commented briefly on land use and transit focus points. He explained density and infill support transit, and downtown Ashland's high transit numbers validates this. He stated the mixed use developments in Ashland have increased transit activity, and noted the desire for riders to be able to have bus stops close to their final destinations. Mr. Gomez was asked to comment on RVTD's Saturday service. He explained this is currently funded through a grant and RVTD does not have the funds to keep it long term. He clarified transit is subsidized regardless of ridership levels, but added the high ridership numbers on Saturday makes a strong case for expanding weekend service, DICUSSION ITEM A. Discussion of Master Planning Approach. Community Development Director Bill Molnar and Planning Manager Maria Harris provided a presentation on three of the City's master planning efforts: 1) North Mountain Neighborhood, 2) Croman Mill District, and 3) the Normal Neighborhood Plan. North Mountain Neighborhood The North Mountain Neighborhood master planning began in 1994 and the plan was adopted in 1997. The area is approximately 75 acres in size and there were 9 separate property owners, with 8-9 existing residences nearby. The area lacked facilities, had very limited paved access, and most of the owners were interested in creating a plan. Ms. Harris noted the City was aware of the property owners' interests in developing this area, and there was concern about a piecemeal approach versus a more coordinated effort. She stated what resulted was a master plan and noted it has been amended over time. Ms. Harris explained some of the funding started with a state grant and the key elements to this plan were a gridded system, creating neighborhood identity, and the dedication of the Bear Creek floodway and greenway as public park land. She added this was also the first time the City adopted a neighborhood business overlay. Croman Mill District The Croman Mill District master planning began in 2007 and the plan was adopted in 2010. The area was owned by 6 property owners, with the Croman Corp owning the majority at approximately 70 acres. Ms. Harris stated most of the participants were supportive and willing to go through the master planning process; and noted they were looking to get something going on this property which had been abandoned for a number of years. She stated this area had limited public facilities and infrastructure and there was a council goal to develop a plan. Ms. Harris stated this plan was also funded by a state grant and stated when a grant is received the City is obligated to work through the state's process and work with a consultant from the state's preapproved list. She added the City is currently speaking with the state about the ability to work with more local consultants. Ms. Harris cited the requirement for the City to have enough land to accommodate job growth for the next 20 years, and stated the Croman site was one of just two areas left in the City where the City could plan for future employment use. She noted there was pressure for this area to be used for residential development and an application came forward after the master plan was adopted to rezone a portion of the site, but the Planning Commission denied that application. Ms. Harris stated the key elements to this plan were industrial and office use lands, a neighborhood center, the preservation of natural features (Hamilton Creek, pond and wetlands), a central open space element, a main spine into the property, creating a unique identity for this area, and maintaining access to the railroad. Normal Neighborhood Plan The Normal Neighborhood Plan area is approximately 95 acres and is owned by 26 different property owners. Some property owners had no interest in annexing or developing their property or participating in the master planning process; but there was also a significant amount of land owned by individuals who wanted to develop it. Ms. Harris noted there was some development pressure for this area, and a pre-application conference occured. She noted that several times over the last decade the issue came up about whether there should be a planning process for this area, and after the RPS process and the City's decision to not identify future growth areas outside the urban growth boundary, this area was identified by the City Council as a place to accommodate future residential demand and they adopted a Council goal to create a plan. Ashland Planning Commission September 23, 2014 Page 2 of 4 Ms. Harris explained tonight is an opportunity for informal discussion about the City's master planning process and stated staff will need to report back to the Council and provide an assessment of this approach. Commissioner Thompson asked if the City had criteria to determine when a neighborhood planning effort will happen, as opposed to letting the area develop in a piecemeal approach. Mr. Molnar stated there is no criteria codified in the land use code and stated these areas stood out because they were large areas with limited development, lacked infrastructure, and there was movement from property owners who wanted to develop. He added you can either let development occur within the existing zoning, or create a master plan which provides the opportunity to look at a broader set of issues, create an identify for the area, and allow the neighborhood to participate in the vision for the area. Commissioner Miller asked if Oak Knoll, Quiet Village, or the Greenmeadows neighborhoods were master planned. Commissioner Dawkins stated No, and stated the developer was able to build out these areas. Mr. Molnar added these neighborhoods were master planned, but it was a private and not public process. He stated the owners owned much larger pieces of land and had the ability to design whole neighborhoods. Commissioner Kaplan recommended they postpone this discussion until the City Council makes a decision on the Normal Neighborhood Plan. He stated the issues raised by the Council regarding the master planning process seem to focus on the Normal Plan and they should wait until Normal is done and see what went well and what didn't work. Staff was asked if there are any other areas in town susceptible to master planning. Mr. Molnar clarified there is nothing of the scale of the three plans identified. He stated transit corridors may be looked at next (such as Ashland St) as well as the Winburn Way corridor. Commissioner Thompson commented on the difficulty of these plans. She stated when you invite all the different interests to the table and ask them to think about what they want and don't want; points of disagreement arise and the City is forced to come down on the issues. She stated master plans for areas that already have some development will be a contentions and difficult process. She pointed to Normal and cited all the compromises that were made, and yet they still did not come to a plan that everyone supported. Commissioner Kaplan stated he is still not clear on how they should proceed and stated this discussion will be limited until the Normal process is complete. He stated the Normal Plan has all of the elements - all of the things that went well, and all the things that went poorly. Commissioner Thompson stated the rationale for embarking on a master plan needs to be clearly identified and the City Council needs to agree that this is the road they want to go down, and then establish some parameters. Commissioner Mindlin stated there have been very good reasons for the master plans done so far, and stated the lack of involvement from the City Council on the front end is a major problem. She noted all the staff time and dollars spent creating these plans, and stated it is frustrating when the council members are not involved. Councilor Morris agreed with Mindlin and stated the elected councilors for the most part don't understand land use law and the Council that starts the process may not be the same Council as when it finishes. He agreed that the Council needs to provide better direction on what they expect to see for the master planning process and stated there is not a clear answer on how to do master plans. Commissioner Kaplan commented that mid-course feedback from the City Council would be helpful so the Commission could adjust direction if needed. Commissioner Dawkins voiced his concern with the state grants and stated the master planning can get totally out of hand. He gave his opinion that the property owners and staff should approach the City Council and ask for money to do a plan, and stated the money from the state does not compare to all the staff time costs for the City. Ashland Planning Commission September 23, 2014 Page 3 of 4 Commissioner Miller voiced her objection to the use of out of area consultants. Comment was made that one benefit of out of the area consultants is a new pool of ideas. Additional suggestion was made to have a one year time limit on master planning. Mr. Molnar thanked the Commission for their input and stated staff will begin to structure this into a format that they can build on. He added he will discuss with Commissioner Kaplan the next steps for this item. ADJOURNMENT Meeting adjourned at 8:50 p.m. Submitted by, April Lucas Administrative Supervisor Ashland Planning Commission September 23, 2014 Page 4 of 4 CITY OF -ASHLAND Council Communication November 4, 2014, Business Meeting Change Order for Asbestos Removal at Ashland Creek Park FROM: Bruce Dickens, Parks Superintendent, Parks and Recreation, bruce.dickens@ashland.or.us SUMMARY On August 29, 2014, Ashland Parks and Recreation contracted with Global Pacific Environmental to test and remove asbestos at Ashland Creek Park. Not having any way to know the extent of the buried material, the contractor was required by the State of Oregon Department of Environmental Quality to proceed with much more work than was originally estimated. BACKGROUND AND POLICY IMPLICATIONS The property at 27 E. Hersey Street has been under construction for a community park since June 2014. During construction, asbestos tile was discovered in an area just outside the community garden area. Ashland Parks and Recreation hired a contractor to immediately remove the material. During the removal process, the area on which asbestos had been dumped continued to expand to the east of the site where it was originally discovered. FISCAL IMPLICATIONS The original project estimate was contracted at $6,000; however, the entire debris removal project required by the Department of Environmental Quality came to a total of $33,332.35 due to the prevailing wage for Jackson County. Funding is available in the CIP budget for this addendum. STAFF RECOMMENDATION AND REQUESTED ACTION Staff is asking council to recommend approval for an additional amount of $27,332.25 to cover the cost of asbestos removal at Ashland Creek Park. SUGGESTED MOTION N/A ATTACHMENTS Addendum to original contract Page 1 of 1 Ir, ADDENDUM TO CITY OF ASHLAND CONTRACT FOR GOODS AND SERVICES LESS THAN $25,000 Addendum made this 20th day of October, 2014, between the City of Ashland ("City") and Global Pacific Environmental ("Contractor"). Recitals: A. On August 29, 2014, City and Contractor entered into a "City of Ashland Contract for Goods and Services Less than $25,000" (further referred to in this addendum as "the agreement"). B. The parties desire to amend the agreement to increase the compensation to be paid to Contractor due to the discovery of asbestos removal that exceeded the original estimated amount of material on site. City and Contractor agree to amend the agreement in the following manner: 1. The maximum price as specified in Paragraph 4 of the agreement is increased to $ 33,332,35. 2. The scope of services is increased mainly due to labor hours paid at prevailing wage. There was an increase of materials, trucking, disposal fees and DEQ fees as well. 3. Except as modified above, the terms of the agreement shall remain in full force and effect. CONTRACTOR: CITY OF ASHLAND: BY BY Department Head Its Date DATE Purchase Order # Acct. No.: (For City purposes only) 1- CITY OF ASHLAND, ADDENDUM TO CONTRACT FOR GOODS AND SERVICES CITY OF ASHLAND Council Communication November 4, 2014, Business Meeting Approval of an MOU between the City of Brighton Police Department and the Ashland Police Department to join the You Have Options national program. FROM: Corey Falls, Deputy Chief, core..f~gashland.or.us SUMMARY The City of Ashland Police Department is coming before the Council for approval of an MOU between the City of Brighton Police Department and the Ashland Police Department to join the You Have Options national program. BACKGROUND AND POLICY IMPLICATIONS: The Ashland Police Department has started a national program for sexual assault reporting called You Have Options. This program is led by law enforcement professionals working in partnership with advocacy and experts in the field of sexual assault response and prevention, to make the law enforcement response to sexual assault more effective. Agencies participating in the You Have Options Program will receive training in law enforcement options for sexual assault reporting and best practice law enforcement strategies to assist in the identification and investigation of sexual offenders. The City of Brighton Police Department is the first police department to join this program. FISCAL IMPLICATIONS: There are no fiscal implications for the MOU. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends that Council accept the MOU between the City of Brighton Police Department and the Ashland Police Department. SUGGESTED MOTION: Move to approve the MOU between the City of Brighton Police Department and the Ashland Police Department. ATTACHMENTS: Copy of the You Have Options MOU. Page I of I 7~, THE YOU HAVE OPTION&Go',p Memorandum of PROVIDING VICTIMS OF SEXUAL ASSAULT WITH OPTIONS FOR REPORTING TO LAW ENFORCEMENT. F. Understanding PROVIDING LAW ENFORCEMENT WITH INFORMATION TO HOLD SEXUAL OFFENDERS ACCOUNTABLE. 3 WWW.REPORTINGOPTIONS.ORG Between the YOU HAVE OPTIONS Program and (Name of Participating Law Enforcement Agency) NUMBER: YHOP-I4-XXX This Memorandum of Understanding, while not legally binding, documents a voluntary agreement to join the national implementation of the You Have Options Program. Led by law enforcement professionals working in partnership with advocacy and experts in the field of sexual assault response and prevention, the aim of the Program is to make the law enforcement response to sexual assault more effective. PURPOSE Agencies participating in the You Have Options Program will receive training in law enforcement options for sexual assault reporting and best practice law enforcement strategies to assist in the identification and investigation of sexual offenders. The You Have Options Program and the (Participating Law Enforcement Agency) recognize the need for a victim-centered and offender-focused response to sexual violence. The traditional law enforcement response to sexual violence tends to discourage sexual assault victims from seeking assistance through the criminal justice system. As a result, often doesn't receive the information necessary to hold sexual offenders accountable, and those offenders go on to victimize additional persons. The You Have Options Program focuses on changing two fundamental elements in the law enforcement response to sexual violence: Increasing the number of victims who report to law enforcement, and thoroughly investigating identified offenders for serial perpetration. A small percentage of the population commits a large number of sexual assault offenses. Utilizing the victim-centered and offender-focused strategies of the You Have Options Program allows law enforcement to work collaboratively and gather the information necessary to identify and successfully investigate serial sexual predators. Page 12 GOALS OF THE YOU HAVE OPTIONS PROGRAM 1. Increase sexual assault reporting by eliminating as many barriers to reporting as possible. 2. Increase identification and prosecution of sexual offenders. 3. Decrease sexual assault victimization. COLLABORATION The You Have Options Program and the (Participating Law Enforcement Agency) mutually agree that sharing best practice techniques, strategies and methods in the field of sexual assault reporting and investigation increases the effectiveness of the law enforcement response to sexual violence. This collaborative approach ensures the sharing of knowledge and resources while reducing the duplication of efforts. To aid in this objective the (Participating Law Enforcement Agency) will have unrestricted access to the law enforcement portal on the You Have Options Program national website www.Reporting0ptions.org for the length of time this Memorandum of Understanding remains in effect. Collaboration between law enforcement and those that are victimized must also occur, both during the reporting process and any subsequent investigation. The You Have Options Program and the (Participating Law Enforcement Agency) agree that reasonable efforts will be made to address barriers victims face when reporting a sexual assault to law enforcement and when working with law enforcement during an investigation. The You Have Options Program and the (Participating Law Enforcement Agency) understand a sexual assault victim's wants and needs may at times be in conflict with the criminal justice process and agree to place the victim's preference first when legally possible to do so. FUNDING At every available opportunity the You Have Options Program will provide training, curriculum and other program materials at low or no cost to all You Have Options Participating Law Enforcement Agencies. The You Have Options Program is designed to have as little impact as possible on the budgets of those who implement the You Have Options Program. The (Participating Law Enforcement Agency) commits to fund the following items associated with implementation of the You Have Options Program: • Designation, training and staff time for a You Have Options Program Administrator(s) • Designation, training and staff time for a You Have Options Trainer(s) • Training of department personnel YOU HAVE OPTIONS Program © 2014 www.Reporting0ptions.org Page 13 • Online report form submissions • Software for You Have Options Database (database provided) • Minor fees associated with national website hosting and maintenance GENERAL This Memorandum of Understanding does not create additional jurisdiction or limit or modify existing jurisdiction vested in the parties. This Memorandum of Understanding is intended exclusively to provide guidance for implementation of the You Have Options Program within the (Participating Law enforcement Agency). Nothing contained herein creates or extends any right, privilege, or benefit to any person or entity other than outlined above. Each party may disclose publicly the terms of this Memorandum of Understanding. Appendices 1 through 4, attached to this Memorandum of Understanding, are incorporated herein and deemed to be a material part of the Memorandum of Understanding. It is the understanding of both the You Have Options Program and the (Participating Law Enforcement Agency) that all agencies participating in the You Have Options Program shall abide by: Appendix 1: ROLES AND RESPONSIBILITIES OF A YOU HAVE OPTIONS PROGRAM LAW ENFORCEMENT AGENCY Appendix 2: PARTICIPATING AGENCY PROGRAM ADMINISTRATOR Appendix 3: PARTICIPATING AGENCY PROGRAM TRAINER Participating Law Enforcement Agencies shall adopt a written directive policies and procedures for their personnel in accordance with the Roles and Responsibilities of a You Have Options Program Law Enforcement Agency as defined in Appendix 1. TERMS OF UNDERSTANDING This Memorandum of Understanding may be modified by written consent of authorized officials from the You Have Options Program and the (Participating Law Enforcement Agency). This Memorandum of Understanding shall become effective upon signature by an authorized official from the You Have Options Program and the (Participating Law Enforcement Agency) and will remain in effect until modified or terminated by an authorized official from the You Have Options Program or the (Participating Law Enforcement Agency). This agreement can be severed at any time and for any reason by either the You Have Options Program or the (Participating Law Enforcement Agency). YOU HAVE OPTIONS Program © 2014 www.Reporting0ptions.org Page ~4 CONTACT INFORMATION The You Have Options Program Program Manager: Carrie Hull 1155 E. Main Street Ashland, OR 97520 541-552-2126 541-552-2179 (fax) carrie.hull@ashland.or.us (Participating Law Enforcement Agency) Address Phone E-mail AUTHORIZED SIGNATORIES Execution of this MOU confirms that the signatories will strive to reach, to the best of their ability, the objectives stated in the MOU. You Have Options Program: Chief Terry Holderness, Ashland Police Department Date Participating Law Enforcement Agency: Date This project was supported by grant VAWA-C-2013-JacksonCo.SART-00045 awarded by the Office on Violence Against Women, US Department of Justice. The opinions, findings, conclusions, and recommendations expressed in this document are those of the author(s) and do not necessarily reflect the views of the state or the US Department of Justice, Office on Violence Against Women. YOU HAVE OPTIONS Program © 2014 www.ReportingOptions.org Page IS APPENDIX 1: ROLES AND RESPONSIBILITIES OF A YOU HAVE OPTIONS PROGRAM LAW ENFORCEMENT AGENCY The You Have Options Program and the (Participating Law Enforcement Agency) believe in providing victims of sexual assault with as much control over their report and any subsequent criminal investigation as the law allows. Unless legally mandated (e.g., certain instances of domestic violence; when the victim is under 18; when a victim is in continuing physical danger) or in other rare circumstances such as a significant threat to public safety, the following 20 Elements of a Victim-Centered and Offender-Focused You Have Options Law Enforcement Response, at a minimum, shall be offered during every sexual assault report and/or investigation: 1. A victim of sexual assault is offered three options for reporting: Information Only, Partial Investigation or Complete Investigation. a. An Information Only Report includes any report of sexual assault where, at the reporting party's request, no investigative process beyond a victim interview and/or a complete or partial Inquiry into Serial Sexual Assault (ISSA) is completed. b. A Partial Investigation includes any report of sexual assault where some investigative processes beyond the victim interview and a complete or partial Inquiry into Serial Sexual Assault (ISSA), have been initiated by law enforcement. This may include, but is not limited to, interviewing of witnesses and collection of evidence such as a sexual assault forensic examination (SAFE) kit. c. A Complete Investigation includes any report of sexual assault where all investigative procedures necessary to determine if probable cause exists for a criminal sexual assault offense have been initiated and completed. d. A sexual assault victim may change from an information Only report to a Partial or Complete Investigation at anytime. e. A sexual assault victim may initially request a Complete Investigation and change to a Partial Investigation at any time prior to the conclusion of all investigative processes. f. It is the recommendation of the You Have Options Program to not list a person as a "suspect" unless all investigative processes have been completed (Complete Investigation), or in the case of a Partial Investigation the investigative processes completed have shown probable cause to believe the crime reported occurred. However, each individual agency may determine how it chooses to list a reported perpetrator in its report writing system (ie Person, Suspect, Involved). A reported perpetrator's known biographical information, such as a name and birth date, shall be included in the report to aid in identifying serial perpetration. g. Victims of sexual assault are encouraged to report even if they never intend to pursue criminal charges against the person who assaulted them. YOU HAVE OPTIONS Program © 2014 www. Reporti ng0ptions.org Page (6 2. A victim or other reporting party may remain anonymous and still have the information they provide documented by a You Have Options Program Law Enforcement Agency. a. Sexual assault information received from any of the reporting options shall be documented in written form and retained in a way that best preserves a victim's options and supports retrieval at a later date to aid in identifying serial sexual perpetration. If legally permissible, no report of sexual assault shall be purged or deleted from a law enforcement agency's records system. b. All information received on a reported sexual assault shall be documented regardless of the apparent credibility of the reporter or apparent veracity of the information being provided. Failure to document all available information inhibits the ability of investigators to identify serial sexual perpetration. c. Investigating officers shall respect the decision of the reporter and not initiate in- person contact. 3. A victim or other reporting party may have questions answered regarding their options for reporting and/or a criminal investigation prior to providing any identifying or incident information to law enforcement. 4. A clear explanation of the reporting process and/or investigative procedures will be provided by a law enforcement officer if requested by the victim. a. This is facilitated by the website www.Reporting0ptions.org and additional victim information sheets provided by the You Have Options Program. 5. When making a report there is no requirement to meet in person with a law enforcement officer. For example, a victim or other reporting party may report using an online form or a victim may choose to have a sexual assault advocate report on their behalf. a. Victims who choose to report through a third-party, such as a sexual assault advocate, maintain their chosen level of confidentiality while still providing to law enforcement important information on serial sexual perpetration. With a victim's permission, law enforcement has the ability to contact the victim through the third-party. 6. Reasonable efforts will be made to allow the victim or other reporting party control over the location, time and date where their initial report is made to law enforcement. a. If accommodations are unable to be made as requested by a victim or reporting party, a clear explanation as to why shall be provided by the law enforcement officer. YOU HAVE OPTIONS Program © 2014 www.Reporting0ptions.org Page 17 7. A victim or other reporting party may provide as much, or as little, information as they choose with no time limitations or restrictions on when the information is given to law enforcement. a. Information obtained on an incident outside the current statute of limitations shall be documented to assist in identifying serial sexual perpetration and/or in other investigations. 8. Law enforcement officers will offer assistance in locating sexual assault advocacy services to every person reporting. a. The physical and mental health and welfare of every victim of sexual assault shall be the priority at all times. b. Not all victims of sexual assault request or want the services of a sexual assault advocate, and care should be taken to respect each victim's individual decision. c. Additional confidentiality and victim safety concerns should be considered when contacting sexual assault advocacy, particularly in rural communities and/or in communities where the victim may personally know the advocate. 9. A victim maybe accompanied by asexual assault advocate or other appropriate support person during all phases of the reporting process and criminal investigation. a. If necessary, a clear explanation will be provided to a victim if his/her selected support person is not appropriate, such as a person who was a witness to the assault. 10. A victim, or other reporting party, may end an interview with law enforcement at any time without having to provide a reason. 11. After making a report, a victim or other reporting party will not be pressured to participate in a criminal investigation. 12. Reasonable efforts will be made to meet the needs of the victim and address any barriers the victim faces in providing information to law enforcement during the reporting process. a. Each victim reporting a sexual assault will have unique needs and circumstances that influence the decision to report. Often law enforcement has means of addressing the reasons why a victim may be hesitant to report. Working in coordination with the sexual assault victim, and his/her advocate if applicable, to identify and address these barriers is a core component of the You Have Options Program. YOU HAVE OPTIONS Program © 2014 www.Reporting0ptions.org Page I8 b. Understanding that each victim's individual situation is unique, investigating officers shall attempt to view the reporting process from the victim's perspective and not assume what barriers a victim faces when reporting sexual assault. c. Many barriers such as fear of reporting to a certain gender, lack of transportation to the interview location or hesitancy to enter a law enforcement facility may be readily remedied by law enforcement if known. d. By addressing the barriers victims face when reporting sexual assault, and thereby increasing the number of sexual assault reports, investigators receive information they would otherwise never have had access to. 13. Law enforcement officers will conduct victim interviews in a trauma-informed manner. a. Reasonable efforts shall be made to limit the number of times a victim is interviewed regarding the assault. b. The victim's safety, cognitive impairment and mental health shall be taken into consideration prior to any interview. c. Victim statements shall be documented in a manner best allowing for an accurate record of the victim's exact statements, not a synopsis of the interviewer's perception of what was said. Paraphrasing can impart a different meaning. It is strongly recommended that, with a victim's consent, all victim interviews be audio and/or video recorded. This method of documentation allows the written record to most accurately reflect the actual words spoken by a victim or reporting party, and removes the chance for inconsistencies between the victim's and interviewer's recall of the interview. 14. Reasonable efforts will be made to meet the needs of the victim and address any barriers the victim faces when participating in a sexual assault investigation. a. Each victim of sexual assault will have unique needs and circumstance that influence the decision whether to continue with a criminal investigation. Often law enforcement has means of addressing the reasons why a victim may be hesitant to pursue charges against the person who assaulted them. Working in coordination with the sexual assault victim to identify and address these barriers is a core component of the You Have Options Program. b. Understanding that each victim's individual situation is unique, investigating officers shall attempt to view the investigative process from the victim's perspective and not assume what barriers a victim faces when participating in a sexual assault investigation. 15. A victim's right to keep the assault confidential shall be respected when legally permissible. No person (outside of a law enforcement agency) shall be notified that the victim has reported without the victim's consent. This includes the interviewing of identified witnesses and perpetrators. YOU HAVE OPTIONS Program 9)2014 www.Reporting0ptions.org Page 19 a. Investigators shall make reasonable efforts to only initiate processes that will maintain the victim's requested level of confidentiality. b. Special attention shall be given to restrict information dissemination to any institution with Title IX mandated reporting requirements for sexual assault, unless the victim consents to the information dissemination after being informed of how the institution's Title IX policy may limit the victim's ability to remain confidential. 16. Investigators will utilize strategies to identify and document serial sexual perpetration, such as the Inquiry into Serial Sexual Assault (ISSA). a. Serial perpetration strategies include, but are not limited to: focusing on how a suspect made the victim vulnerable, accessible and appear to lack credibility and identifying those who can corroborate that behavior; identifying witnesses to the victim's and suspect's behavior prior to and after the assault; and identifying opportunities for corroborative intelligence that can reveal motive, premeditation and/or information that may lead an investigator to additional victims. b. If reasonably possible, investigative strategies conducted by the investigating officer shall be discussed with the victim prior to their execution. c. Investigators shall make reasonable efforts to only initiate processes that will maintain the victim's requested level of confidentiality. 17. Investigators will collaborate with victims during the investigative process and respect a victim's right to request certain investigative steps not be conducted. Criminal investigations will be conducted at a pace set by the victim, not the law enforcement officer. a. At a victim's request, reasonable efforts will be made to collect and store evidence regardless of the victim's decision on whether to proceed with charges or participate in a Complete Investigation. b. Investigating officers will keep victims of sexual assault informed regarding the status of the investigation. c. Victims will be informed that no case can proceed to arrest or referral to an office of prosecution until the investigative process is complete. 18. A victim may disengage from a criminal investigation at any time prior to an arrest being made or the case being referred to an office of prosecution. There is no requirement that an explanation be given by the victim to law enforcement. 19. If legally permissible and probable cause exists for a crime, no arrest or referral to an office of prosecution will occur without the consent of the victim. All You Have Options Law Enforcement Agencies respect the choice of every victim who reports a YOU HAVE OPTIONS Program © 2014 www.Reporting0ptions.org Page 1 10 sexual assault, and understand that justice is not the same for every person who is victimized. a. Investigating officers shall offer options and not advice or directives. For example, it is never appropriate for any officer to tell a victim that they should cooperate with an investigation in order to prevent the sexual offender from assaulting others. The responsibility to not harm is the offender's, not the victim's. 20. Criminal investigations that do not result in arrest or referral to an office of prosecution will be classified as "inactive", or the individual agency's equivalent, unless found baseless or false, allowing for the investigation to be re-opened in the future at a victim's request and/or if additional information is discovered. In addition to the 20 Elements of a Victim-Centered and Offender-Focused You Have Options Law Enforcement Response all You Have Options Participating Law Enforcement Agencies commit to: • Prioritize medical and advocacy resources for every victim who reports a sexual assault, regardless of their decision to prosecute the offender and/or choice to assist law enforcement with an investigation. ■ Provide non victim-blaming education to community members within the agency's jurisdiction on the importance of sexual assault reporting and the reality of sexual assault perpetration, to include education on why an increase in the number of sexual assault reports should be viewed as a reflection of a more accurate picture of victimization. • Focus shall be on how sexual offenders target victims who are vulnerable, accessible and appear to lack credibility because often such victims are unlikely to report to law enforcement, and if they do report they may not be believed. Identification and documentation of serial sexual offending is a way to combat this manipulation by the offender of both the victim and the traditional criminal justice system. • Caution shall be used when providing any community education regarding risk reduction strategies, to avoid shifting the focus from the offender's responsibility to not commit a sexual assault. For example, risk reduction strategies should be framed by how the perpetrator targets victims (i.e. intoxicated and/or isolated persons) instead of how a victim's behavior allowed an assault to occur (i.e. a victim consumed alcohol and therefore made herself/himself available to a perpetrator). YOU HAVE OPTIONS Program © 2014 www.Reporting0ptions.org Page 1 11 ■ Train and hold accountable every member of the participating agency, sworn and non- sworn, for the same victim-centered and offender focused response as outlined in the Memorandum of Understanding. • Investigating officers are expected to view the sexual assault incident and any additional relating factors from the victim's perspective and circumstances instead of their own. • Investigating officers are expected to maintain a level of understanding in regards to: Collaboration with advocacy, barriers to reporting, using the language of non-consensual sex in reporting writing, increased barriers faced by marginalized populations, reasons victims provide false information, the reality of false reporting, trauma-informed victim interviewing, the impact of Title IX on victim confidentiality, investigative strategies, sexual assault dynamics and serial perpetration. The You Have Options Program will provide no-cost curriculums on these training areas and/or provide resource information for endorsed instructors and organizations that can offer advanced instruction on these areas to agency personnel. ■ Promote an environment within their agency in which victims of sexual assault are not judged or blamed for their assault and instead are treated with dignity, sensitivity and courtesy. ■ Not polygraph victims reporting a sexual assault. A polygraph examination of a victim shall not be requested, required, or conducted as a condition for proceeding with the investigation of the crime. ■ Not arrest any person for filing a false report of sexual assault without evidence beyond a recantation to support the false report charge. Additionally, Participating Law Enforcement Agencies agree that if corroboration does exist, careful consideration will be given prior to initiating an arrest for false report. The Participating Agency understands that often evidence-supported false reports are the result of emotional problems and false report arrests deter other victims of sexual assault from reporting. Consideration of these factors should be made in cases where no reported perpetrator was named and/or impacted by the false report. ■ Identifying alternative options other than an immediate arrest of a victim for criminal activity he/she engaged in related to the assault. ■ Not require any victim of sexual assault to sign a waiver stating they do not want to participate in an investigation. ■ Not list any victim who chooses to disengage from the reporting and/or investigative process as "uncooperative." YOU HAVE OPTIONS Program 9)2014 www.Reporting0ptions.org Page 1 12 ■ Gather data on each report and/or investigation of sexual assault reported to the Participating Agency utilizing the database provided by the You Have Options Program, or an equivalent database already in use by the Participating Agency. Database requirements will be clearly outlined by the You Have Options Program. ■ Provide four (4) quarterly reports of requested data to the You Have Options Program Manager from the database provided by the You Have Options Program. The You Have Options Program will not release any information from the data provided by the Participating Agency that will identify the Participating Agency in relation to the data without the express permission of the Participating Agency. ■ Participate in a local Sexual Assault Response Team (SART) if available. ■ Not modify, alter or change any print media created by the You Have Options Program without express permission from the You Have Options Program Manager or designee. ■ Only identify their agency as a You Have Options Participating Law Enforcement Agency during the time period when a signed Memorandum of Understanding is in effect. ■ All You Have Options Program Participating Agencies accept a responsibility to protect the use of the You Have Options Program name, logo, likeness or any other reference to the program and only use the You Have Options Program name, likeness and created materials in accordance with the victim-centered and offender-focused intent of the program as outlined in this Memorandum of Understanding. Use of any You Have Options Program generated content (ie law enforcement training videos, curriculum) is limited to law enforcement-led activities only unless made publicly available by the You Have Options Program or with the express permission of the You Have Options Program Manager. Creative use of the You Have Options Program name, logo, website address, content and/or other likeness is encouraged by all You Have Options Program Law Enforcement Agencies. Caution shall be taken to not create any product that is victim-blaming in any way. ■ Cease immediately the use or distribution of any created product or material containing the You Have Options Program name, logo, website address, content, likeness or any other reference to the program at the request of the You Have Options Program Manager or other designee. YOU HAVE OPTIONS Program © 2014 www.Reporting0ptions.org Page 1 13 APPENDIX 2: PARTICIPATING AGENCY PROGRAM ADMINISTRATOR The (Participating Law Enforcement Agency) agrees to designate at minimum one (1) employee of the (Participating Law Enforcement Agency) to act as a Program Administrator for the You Have Options Program within the (Participating Law Enforcement Agency). To remain certified as a You Have Options Program Participating Agency the (Participating Law Enforcement Agency) understands a minimum of one (1) Program Administrator shall be designated for their department at all times. Effective implementation of this agreement can only be achieved through continuing communication and dialogue. It is the intent of the Memorandum of Understanding that the (Participating Law Enforcement Agency's) designated Program Administrator collaborates with the You Have Options Program Manager as necessary to facilitate effective implementation of the You Have Options Program within the participating agency. The Program Administrator(s) shall: ■ Be the main contact for the You Have Options Program Manager. ■ Be the main contact for personnel of the (Participating Law Enforcement Agency) in regards to the You Have Options Program implementation and participation. ■ Oversee the (Participating Law Enforcement Agency)'s designated Trainer(s). ■ Oversee any materials, curriculums or other media created by the Participating Law Enforcement Agency that use You Have Options Program content or program materials in any way are consistent with the intent of the You Have Options Program as outlined in the Memorandum of Understanding. ■ Oversee the collection and entry of data utilizing the You Have Options Program Data Collection Form for each report and/or investigation of sexual assault at the Participating Agency. ■ Coordinate the delivery of four (4) quarterly reports of data from each report and/or investigation to the You Have Options Program Manager. ■ Attend a minimum of one (1) You Have Options Program Introductory Session. No employee may be designated as a Program Administrator until this training has been completed. ■ Maintain the continuity and intent of the You Have Options Program. APPENDIX 3: PARTICIPATING AGENCY PROGRAM TRAINER The (Participating Law Enforcement Agency) agrees to designate at minimum one (1) sworn employee of the (Participating Law Enforcement Agency) to act as a Program Trainer for the You Have Options Program within the (Participating Law Enforcement Agency). To remain certified as a You Have Options Program Participating Agency the (Participating Law Enforcement Agency) understands a minimum of one (1) Program Trainer shall be designated YOU HAVE OPTIONS Program © 2014 www.Reporting0ptions.org Page 1 14 for its department at all times. The designated Program Trainer may also serve as the Program Administrator. The Program Trainer(s) shall: ■ Provide training to all employees of the (Participating Law Enforcement Agency) on the You Have Options Program. ■ Oversee non victim-blaming education to community members within the agency's jurisdiction. ■ Maintain the continuity and intent of the You Have Options Program in all presentations, instruction and assistance provided to Participating Agency personnel and any other audience. ■ Maintain the knowledge, skills and level of proficiency necessary to effectively educate Participating Agency personnel on the intent of the You Have Options Program. Participating Agency Trainers may use You Have Options Program curriculums and provided training materials for trainings outside their jurisdiction. However, they shall not be designated as a You Have Options Program Trainer for a jurisdiction for which they are not employed. APPENDIX * RECOMMENDED BEST PRACTICES The following are recommended best practices, and while not required for program participation, should be carefully considered by all You Have Options Program Participating Agencies: ■ Working with Community-Based Advocacy While there is no requirement for You Have Options Participating Law Enforcement Agencies to coordinate their responses to sexual violence with advocacy agencies within their jurisdiction, doing so is strongly recommended. The availability of a community- based advocate who is not associated with the criminal justice process (i.e. advocates within an office of prosecution or law enforcement agency) for sexual assault victims cannot be overstated. Participating Agencies that work on strengthening their relationship with community-based advocacy, and other available advocacy resources, will benefit as victims often test the law enforcement reporting process by first seeking out information via advocacy. Advocates who are familiar with the You Have Options reporting and investigative process will be better equipped to provide accurate options to sexual assault victims. Training as a team of law enforcement and advocacy together is encouraged as a way to facilitate the building of this important professional relationship between law enforcement and advocacy. ■ Soft Interview Room Participating Agencies are encouraged to provide a room specifically designed to facilitate comfort during the victim interview and any additional investigative meetings. YOU HAVE OPTIONS Program © 2014 www. Repo rti ng0ptions.org Page 1 15 Standard interview rooms may reinforce a victim's belief they are the one being investigated or that the interview is more of an interrogation. Participating Agencies are encouraged to provide photographs of their "soft" interview rooms for placement on the Participating Agencies page on www.Reporting0ptions.org as an additional way to show victims the steps the Participating Agency is taking to facilitate their comfort during the reporting and investigative process. ■ Forensic Experiential Trauma Interview (FETI) Participating Agencies are encouraged to train their personnel in the Forensic Experiential Trauma Interview for use in victim interviewing. Developed by Russell Strand, a retired U.S. Army CID special agent and the current chief of the Family Advocacy Law Enforcement Training Division at the U.S. Army Military Police School, this interviewing technique reduces the inaccuracy of information obtained during the interview process and enhances the understanding of the victim's experience, taking into account how stress and trauma impact memory. The You Have Options Program will assist all Participating Agencies in locating opportunities for their personnel to receive training on this method of interviewing. ■ Retention of Sexual Assault Evidence Participating Agencies are encouraged to adopt a policy for collecting, processing and storing forensic sexual assault evidence that focuses on the retention of evidence to preserve victim and investigative options and assist in the identification of serial sexual offenders. The You Have Options Program will provide policy examples at the request of any Participating Agency. ■ Outside of Jurisdiction Reports Participating Agencies are strongly encouraged to never turn away a victim who initiates a sexual assault report when it is determined the incident they are reporting occurred in another jurisdiction. In these instances, best practice is to either initiate a "courtesy report" or directly assist the victim with their report to the jurisdiction of incident. Participating Agencies are expected to understand victims often do not understand law enforcement venue requirements and when told they need to report to another agency, may conclude instead that law enforcement does not want their information. Too often these victims never report to the agency they were referred to. By taking a "courtesy report" or assisting the victim with the report to the jurisdiction of incident, the law enforcement agency is affirming for the victim that his/her information is important; this may keep the victim engaged in the criminal justice process. END OF DOCUMENT YOU HAVE OPTIONS Program © 2014 www.Reporting0ptions.org CITY OF ASHLAND Council Communication November 4, 2014, Business Meeting Downtown Parking Management and Multi-modal Circulation Advisory Committee Transportation Commission Representative FROM: Michael R. Faught, Public Works Director, faughtm@ashland.or.us SUMMARY Staff requests Council approve the Mayor's recommendation to appoint Joe Graf to the Downtown Parking Management and Multi-modal Circulation Advisory Committee as a representative of the Transportation Commission. BACKGROUND AND POLICY IMPLICATIONS: At the November 5, 2013, Council meeting, Council approved 13 regular committee member appointments to the Downtown Parking Management and Multi-modal Circulation Ad Hoc Committee. Of the 13 members, David Young and Craig Anderson were chosen to represent the Transportation Commission. On October 7, 2014, Craig Anderson resigned from the Transportation Commission; leaving one of the two Transportation Commission seats on the Downtown Parking Management and Multi-modal Circulation Ad Hoc Committee vacant. At the October 23, 2014, Transportation Commission meeting, members voted to approve the Mayor's recommendation and elected Joe Graf to fill the vacancy. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends Council approve the Mayor's recommendation to appoint Joe Graf to fill the vacant Downtown Parking Management and Multi-modal Circulation Ad Hoc Advisory Committee position. SUGGESTED MOTION: I move to appoint Joe Graf to fill the vacant Downtown Parking Management and Multi-modal Circulation Ad Hoc Advisory Committee position. ATTACHMENTS: None Page 1 of ] ~r, CITY OF -ASHLAND Council Communication November 4, 2014, Business Meeting Ratification of three-year labor contract with the Electrical Union, IBEW Local No. 659 FROM Tina Gray, Human Resources Manager, tina.g_rayna ashland.or.us SUMMARY The existing three-year contract with the IBEW Electrical Union expired on June 30, 2014. After multiple bargaining sessions and engaging in Mediation, the bargaining teams were able to reach tentative agreement. The contract is a continuation of the existing agreement, with modifications as described below. BACKGROUND AND POLICY IMPLICATIONS: The current labor contract with the IBEW expired on June 30, 2014. The City reached tentative agreement with this bargaining group outlined below. Previous Contract New - Tentative Agreement Change to Vacation Accrual Schedule Less than 4 Years service = 11 days Less than 4 Years Service = 11 days More than 4, less than 14 = 16 days More than 4, less than 9 years = 16 days More than 14, less than 24 = 21 days More than 9, less than 14 = 18 days 24+ years service = 26 days More than 14, less than 19 = 21 days More than 19, less than 24 = 23 days 24+ years service = 26 days The previous contract required employees to Change to Vacation Accrual Limitations use all accrued vacation within the year it Employee cannot accumulate at any time more vacation than twice his/her annual was earned or forfeit the hours. vacation accrual. Contract language did not reflect recent Change to OFLA/FMLA Language changes in Family Leave Laws. The City was Allows up to 3 days off for an ill or injured family member not subject to 0FLA/FMLA providing leave in accordance with paperwork (in addition to other leave available by law). applicable laws, but the contract language was not compliant. Employees who accumulate 720 hours of Change to Sick Leave Cash-out sick leave and who thereafter use 16 or less Employees may elect to receive up to 1/3 of their unused annual sick leave accrual hours of sick leave in a calendar year may be (maximum of 32 hours) as cash on their first paycheck in April. rewarded for not using sick leave. Such employees may be paid at their December 31St hourly rate for 25% of the unused sick leave hours over 720 accumulated as of January 1St Employees were granted (3) days paid Change to Bereavement Leave funeral leave for a death in the immediate Employees will be granted (3) days paid funeral leave for a death in the immediate family. An additional (2) days could be family. An additional (2) days could be granted if the funeral was over 450 miles from granted if the funeral was over 750 miles Ashland one-way or 900 miles roundtrip. from Ashland one-way. Page 1 of 3 PEr, CITY OF -ASHLAND Employees called out for emergency outages Creates Option for Rest without loss of wages prior to their regular work shift (under New language allows the employee who works more than 4 hours prior to their shift certain conditions) would remain on duty at the opportunity to go home and rest the equivalent number of hours worked after overtime rates unless sent home for safety midnight, if he/she feels too tired to finish their shift safely. And/or it allows the reasons, or they would lose out on overtime. supervisor the option to send an employee home to rest without loss of pay if they are if they went home to rest, they had to take not able to work safely. vacation or comp time to prevent loss of wages for the day. No employee shall receive more than 40 Increased comp bank hours of comp time/year. Time in excess of New contract increases the annual max to 60 hours of comp time. This bank is not 40 hours will be compensated as pay. revolving. Response time for emergency call-out was Emergency response requirement previously 30 minutes. Employees may live within 30 miles of the Service Center and must respond within 45 minutes. N/A Customer Response Shift The City proposed an on-call shift through the week in addition to weekend coverage that we have currently. This will provide a faster response to outages or issues that occur during the work week after business hours. Language reflected previous health plan Health Insurance Clean-up even though the bargaining group agreed to The City proposed clean-up to the health insurance section to reflect our new self- self-insurance. insured health plan and ensure union participation on the Employee Health Benefits Committee (EHBAC). Previous contract allowed $100/year boot Uniforms & Protective Clothing allowance. We currently provide each City agreed to look into providing a uniform through a leasing company that provides, employee with an FR clothing allowance and maintains and cleans FR clothing to industry standards. We also agreed to increase uniform cleaning. boot allowance to $450/contract period. FISCAL IMPLICATIONS: • The current budget anticipated a 2% COLA for this bargaining group effective 7/1/2014. • The boot allowance is an increase of $50/year over what is currently offered to employees in the bargaining unit. It is difficult to anticipate how many employees will take advantage of the reimbursement as current utilization is not 100%. Employees working under this contract work in all weather conditions and often require multiple boots to accomplish the work safely. • The City will be implementing an on-call Customer Response Shift (CRS) through the week in addition to the current weekend on-call shift. The CRS will increase our cost by approximately $500/week, but it will improve response time significantly for after-hours electrical emergencies that occur during the week. Only Journey Line Installers will be placed on the CRS, so the responsibility will rotate between 7 employees. The additional compensation is recognition of the impact on family & personal life and the restrictions that come with being on-call for an entire week. Employees working under this contract are funded in the Electric Fund, with the exception of 2 positions funded under AFN. Staff is confident the increases called for in the new contract for the current year can be accomplished within the current budget. A 3-year agreement allows the City to anticipate future expenses and budget appropriately for the remaining years of the contract. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends that the Council authorize the City Administrator and Mayor to sign the 3-year labor contract, ratifying the tentative agreements reached in negotiations with the IBEW. Page 2 of 3 CITY OF ASHLAND SUGGESTED MOTION: Move approval of the labor agreement between the City of Ashland and the IBEW Electrical Union and authorize the City Administrator and Mayor to sign the labor contract, ratifying the tentative agreement reached in negotiations. ATTACHMENTS: None. The Electrical Union is currently incorporating all tentative agreements into the new contract document for City review and signature. Page 3 of 3 CITY OF -ASHLAND Council Communication November 4, 2014, Business Meeting Appointment to Public Arts Commission FROM: Barbara Christensen, City Recorder, christebga ashland.or.us SUMMARY Confirm Mayor's appointment of Richard Newman to the Public Arts Commission with a term expiring April 30, 2017 BACKGROUND AND POLICY IMPLICATIONS: This is confirmation by the City Council on the Mayor's appointment to the Public Arts Commission. Ashland Municipal Code (AMC) Chapter 2.17.020 FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: None SUGGESTED MOTION: Motion to approve appointment of Richard Newman to the Public Arts Commission with a term ending April 30, 2017. ATTACHMENTS: Application received Page 1 of 1 IPFFIA&A 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 christebgashland.orms. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name Richard Newman Requesting to serve on: Public Arts (Commission/Committee) Address 819 Pavilion Place Occupation Artist Phone: Home 541 708 5141 Work Email pythpress@sprynet.com Fax 1. Education Background What schools have you attended? Cleveland Inst. of Art, Cranbrook Academy of Art, Cornell University What degrees do you hold? BFA MEA What additional training or education have you had that would apply to this position? Director of Art Gallery- Bradford College Bradford, MA. Co-director Hilltop Art Gallery, Ashland, OR 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? Professor of Art - 40 years teaching art and art history, Univ. of Washington, Bradford College, Merrimack College Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? NO ~a, 3. Interests Why are you applying for this position? civic responsibility 4. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? Yes, pay 5. Additional Information How long have you lived in this community? 5 years Please use the space below to summarize any additional qualifications you have for this position Member of Board for the Ashland Gallery Association - 4 years Board Member Winnekenni Cultural Foundation, Haverhill, MA. - 3 years October 13, 2014 Zchad Newwan Date Signature rte, CITY OF -ASHLAND Council Communication November 4, 2014, Business Meeting Appointment to Wildfire Mitigation Commission FROM: Barbara Christensen, City Recorder, christebgashland.or.us SUMMARY Confirm Mayor's appointment of Bruce Moats, Stephen Gagne to the Wildfire Mitigation Commission with a term ending April 30, 2015 and Ron Parker to the Wildfire Mitigation Commission with a term ending April 30, 2016. BACKGROUND AND POLICY IMPLICATIONS: This is confirmation by the City Council on the Mayor's appointment to the Wildfire Mitigation Commission. Ashland Municipal Code (AMC) Chapter 2.17.020 FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: None SUGGESTED MOTION: Motion to approve appointment of Bruce Moats, Stephen Gagne to the Wildfire Mitigation Commission with a term ending April 30, 2015 and Ron Parker to the Wildfire Mitigation Commission with a term ending April 30, 2016. ATTACHMENTS: Applications received Page 1 of 1 ~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, 24 E Main Street, or email christeb(&ashland.or.us. If you have any questions, please feel free to contact the City Recorder at 488-5347. Attach additional sheets if necessary. Named V,~- T s Requesting to serve on: w l t QGI ~ 41 `:14 A T _ (Commission/C teo Address r i L AlLP16V A91-- l ivIETA 5W LAN 7) Occupation U1 V 1 /,l y,, - Phone: Home 64t -~1 2 -r G Work Email ),4,omf-s b ty, #hinj.. tl e_t Fax 1. Education Background What schools have you attended? j-CW-AJ!, 11f1rKJAIS UA/ry'; / Ak 1' US /1t ~~rz~nt ~ ' What degrees do you hold?? N CIVIL M ^t C,6. &1 S ,,ni ' S a'+= MS' jBC-r /M+~I+J r° What additional training or education have you had that would apply to this position? 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? Z C . -~Yl R 3tC icy it c pittt2t~ l~r4NAt,_m~nt7.rantara+~ Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? 1 c - 'F TO --4.0 -;t._.____, 07~41FA (0MMUNi7'rgr `t7G4,L wtyi4 t CilAtLgwgrg ir~rjrrc 3. Interests Why are you applying for this position? 1314T(4 TK t4jT w *o jt-#Ay- 4A" 744 JISftYaclrYLT ~sYt 11I '/tLC1M ~!/9 +7MCtn~sT13 T Ph~r -r L1 1~ CYF_ntyrR, Tj~ c-a,~.~t 2 Wtt~~i r d. Availability Are you available to attend special meetings, in addition to the regularly scheduled r°~s meetings? Do you prefer day or evening meetings? 17AY iatd~ 5. Additional Information How long have you lived in this community? Y ~,c1Rs Please use the space below to summarize any additional qualifications you have for this position - E 12 V^^ A s ri M r, W t t l ('Q*t o e a - 2 t~4Ia Ce-xAf!rjW° L-2,q:Ce li> 1tYC.: t a s tN ' ~sc~r t~/_ .f4_►Z Date Signature --n^ CITY OF -AS H LA N D 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 &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 Stephen Gagne Wildfire Mitigation Commission(WMC) Requesting to serve on: (Commission/Committee) Address 155 Westwood St., Ashland Occupation Filmmaker Phone: Home 541/488-2669_ Work same Email wcp.regoopendoor.com Fax 1. Education Background What schools have you attended? New York University School of the Arts (Film) What degrees do you hold? None. Dean's list, but left NYU in senior year due to job offerings which made continued schooling unimportant What additional training or education have you had that would apply to this position? Arguably, none. Spent 20 years teaching (and designing curriculum) in an alternative sc ool, w ere I also serve as school boar s VP and Staff Representative. Currently Chairman of board of Rogue World Music, a local 5016 that's well funded and active in valley. 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? As a filmmaker & educator I've learned to be effective collaborator; easy to work with. I'm a good communicator, with lots of life experience, but I have essentially no direct experience working with local governments, let alone on fire-related issues. Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? - No. 3. Interests , Why are you applying for this position? I m a local homeowner; our residence is just a few hundred yards from the edge of the forest that abuts our neighborhood, so I'm naturally concerned about wildfire risks that are increased by landscaping issues. I've had personal experiences on this question due to a neighbor with numberous rows of Leland Cypress, I discovered our town currently lacks any laws that address property owners whose landscaping poses a substantial risk to their neighborhood. 4. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? I prefer daytime meetings. Depending, I could be available some evenings also. 5. Additional Information Since June of 2002. How long have you lived in this community? Please use the space below to summarize any additional qualifications you have for this position My qualifications are really all about life experience. Towards that end. If you check my page on Linked-in, there are recommendations based on my work as director and lead editor of the Thrive Movie, released in 2011, which was 7 years in production with a 7 million dollar budget. To find me on LinkedIn, search for Stephen Gagne and select the Stephen that's described as "Technical Director, musician, and Instrumentalists Coordinator for Rogue World Ensemble" Scroll to the bottom of my page for the recommendations. You can see the other feature films I've worked on at IMDB (International Movie Database). Go to www.imdb.com and search for my name; the Stephen you want there is listed as "Steve Gagne (II) (Sound Department, The Last Waltz (1978)) aka "Stephen Gagne"" Sept. 22, 2014 Date Signature ~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 cbristeb@ashland.orms. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. P,00 P A-R- 14=P-- Name Requesting to serve on: W 11- b PIR E M 1T 16AIf Commission/Committee) Address ' (,I tO F1 ECG 1`~~ T Occupation Phone: Home AD -0 5 2- Work Email R-Rk ..KE12~/l) wt AET Fax 1. Education Background What schools have you attended? tell aC= 1-t-~/~e ( : What degrees do you hold? -.A & Eo-46114'"TRWJ6 I What additional training or education have you had that would apply to this position? P =UtDU~ L SEilr DNJ 42itVt S E C 8/{9IYllSS/OJ~. r(94~wiSE Comm cW1Ty k~5 A- : 14yA- RAF-S/ojxr 2. Related Experience What prior work experience have you had that would help you if you were appointed to this position? e- ,ems f3A-c►ct rcE W cCL-S fiA"d . S . L-/"T ft fi~,f=-/cam . PRO0 gcGr "19 A9 6k Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? AT / Lrv~~ wotte/f 0AA2. wDA6/gt-s i~67lt,~1r~w Ra'`■' 3. Interests Why are you applying for this position? a yrw h 4. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? VE:5. ~ y 5. Additional Information How long have you lived in this community? Please use the space below to summarize any additional qualifications you have for this position fAl~ Date Signature ~r, CITY OF ASHLAND Council Communication November 4, 2014, Business Meeting Approval of a Special Contractor List for Sludge Hauling to the City of Medford Water Reclamation Facility FROM: David Gies, Wastewater & Water Reuse Supervisor, Public Works, giesd@ashland.or.us SUMMARY One of two centrifuge systems at the wastewater treatment plant will soon be offline for maintenance. If the remaining, single operating centrifuge in the dewatering system fails while the other is offline, a means of transporting the liquid sludge away from the plant will be necessary. Staff is requesting authorization to establish a list of trucking contractors equipped to haul liquid sludge in the event of an emergency. BACKGROUND AND POLICY IMPLICATIONS: The wastewater treatment plant is conducting maintenance on the dewatering system. While maintenance occurs, one of the two centrifuge systems will be offline for several weeks. If in the . unlikely event the second centrifuge fails while first one is down for maintenance, a backup plan has been developed to deal with the liquid sludge. This backup plan includes using contract haulers to truck the liquid sludge to the Medford facility. These contractors would only be used if a sludge dewatering equipment failure causes shut down of a treatment process that turns liquid sludge into twenty percent solids. Dewatered solids are currently hauled to the Dry Creek Landfill in City dump trucks. The City does not own the equipment required to haul liquid sludge, so hiring a contractor is the most viable option. An Intergovernmental Agreement with the City of Medford was previously approved by Council on June 17, 2014 (http://ashland.or.us/Amendas.asp?Display=Minutes&AMID=5711). The City of Medford agreed to accept sludge from the WWTP and the list of sludge haulers in table 1, would be utilized to haul sludge to the Medford reclamation facility in the case of equipment failure. The treatment plant currently has the ability to store up to 100,000 gallons of liquids during an emergency; however, exceeding that amount without disposing of approximately 30,000 gallons of sludge daily would severely impact the City's ability to operate within the limits of its WWTP National Pollutant Discharge Elimination System (NPDES) permit. WWTP plant staffs are currently working on installing the equipment necessary to facilitate pumping sludge into the receiving liquid sludge hauling vehicles. FISCAL IMPLICATIONS: The City of Ashland's WWTP does not currently have appropriated money in the budget should this emergency occur. Wastewater contingency fund monies might be required if an emergency occurs. Page I of 2 CITY OF ASHLAND There is currently $440,000 in contingency in the wastewater fund. It is estimated that all four companies would need to be utilized in order to haul sludge in the case of emergency equipment failure. No individual company has the ability or resources to haul all the sludge required per day. The estimated cost to haul sludge per day is listed in Table 1. Table 1. Vehicle Vehicle Vehicle Price #1 #2 #3 Total Loads per Cost per per Capacity Capacity Capacity Capacity day per carrier Company Gallon (Gallon) (Gallons) (Gallons) (Gallons) carrier per day Drain Pros $0.12 2,500 2,500 2 $600.00 Sweet Water Sanitation $0.15 3,000 2,000 1,500 6,500 6 $1,950.00 AAA Advanced Septic Tank $0.19 2,050 2,050 2 $779.00 A- Affordable Royal Flush $0.20 3,300 3,300 6,600 4 $2,640.00 TOTALS 15,150 14 $5,969.00 STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends that Council approve the special sludge hauler list with an estimated cost of $5,969.00 per day to haul liquid sludge to Medford's water reclamation facility. This price may vary depending on the availability of various trucks from each company. Table 1 lists the estimated cost if all four companies were utilized and all trucks hauled two loads of sludge per day to the Medford Reclamation Facility. SUGGESTED MOTION: I move to approve the special sludge hauler list in the estimated amount of $5,969.00 per day as required to operate within permit guidelines during an unexpected emergency equipment failure. ATTACHMENTS: None Page 2 of 2 PIL CITY OF ASHLAND Council Communication November 4, 2014, Business Meeting Continued Discussion of an Ordinance Replacing Title 18 Land Use of the Ashland Municipal Code with a Reformatted and Amended Land Use Ordinance FROM: Maria Harris, planning manager, harrism@ashland.or.us SUMMARY: The City Council held a public hearing on August 19, 2014 on an ordinance replacing Title 18 Land Use of the Ashland Municipal Code (AMC) with a reformatted and amended land use ordinance, also referred to as the Unified Land Use Ordinance (ULUO). The Council continued the item to the October 7, 2014 meeting for further discussion of key amendments. The Council identified the following list of key amendments for discussion. 1. cottage housing 2. solar orientation standards 3. affordable housing density bonus 4. total density bonus 5. side yard setback abutting residential zones 6. building height in commercial zones 7. building separation in large-scale commercial development 8. accessory residential unit review process 9. threshold for public hearing for review of new buildings and additions in commercial and employment zones 10. porous pavement exemption from lot coverage in residential zones 11. front porch setback in residential zones 12. building separation in residential zones 13. building street frontage requirement for development in commercial and employment zones 14. residential buildings in mixed-use development in commercial and employment zones 15. plaza/public space requirement for large-scale commercial development 16. definitions of hotel and motel 17. effective date of Type II decisions 18. conditional use permit approval criteria At the October 7 meeting, the Council reviewed most of the key amendments and continued the discussion of the remaining five amendments (items 14 - 18 highlighted in list above) to the November 4 meeting. In the October 7 discussion, the Council indicated whether to include, modify, or remove the amendments in the draft land use ordinance for first reading. After the Council completes the discussion of key amendments, the draft land use ordinance will be revised accordingly and scheduled for first reading of an ordinance replacing Title 18 Land Use of the Ashland Municipal Code (AMC) with a reformatted and amended land use ordinance. Page 1 of 7 lorrWAN, CITY OF ASHLAND BACKGROUND: The revised land use ordinance combines the existing land use ordinance, site design and use standards, and street design standards into one document with improved organization, wording, formatting, and graphics. In addition, amendments are proposed to: address recommendations of the 2006 Land Use Ordinance Review, the planning application procedure evaluation, and green development evaluations; improve standards and procedures; standardize chapters; and address inconsistencies and clarify wording. The City Council requested that the Planning Commission identify the key land use ordinance amendments that have the most significant impact on the community. The Planning Commission discussed the proposed changes to the land use ordinance at the September 9, 2013 meeting and identified nine key amendments. The first nine key amendments identified in the list on page 1 were also identified by the Planning Commission. REMAINING KEY AMENDMENTS: A summary of each of the five key amendments that the Council has not yet discussed follows. Each summary includes a code reference for the existing and proposed land use ordinance requirements, a summary of the existing land use ordinance and proposed amendment, the policy objective of the proposed change, and comments regarding the proposed amendment. 14. Residential Buildings in Mixed-Use Development in Commercial and Employment Zones Existing: 18.32.025.D Draft Land Use 18-2.6.030 18.56.050.A Ordinance: 18-2.3.130 18-3.1.13.010.C.1 Existing: Proposed: At least 65 percent of the total gross floor area of the A minimum of 65 percent of the gross floor area of the ground floor, or at least 50 percent of the total lot area if ground floor for mixed-use buildings shall be reserved for there are multiple buildings shall be designated for permitted or special permitted uses, excluding permitted or special permitted uses, excluding residential. If there are multiple buildings on the same lot residential. and any buildings have 100 percent residential occupancy, than not more than 50 percent of the total lot area, including accessory uses such as parking and landscaping, shall be connected with or a requirement of the residential use. Policy Objectives: To maintain the commercial and employment use of land in the commercial and employment zones; clarify the requirements for developments including multiple buildings and buildings that are entirely residential uses. Comments: The above proposed language is different than is included in the Council's draft land use ordinance. Staffs understanding is that the language concerning 50 percent was intended to address situations where there are multiple buildings on the site, and one or some of the proposed buildings would be comprised entirely of residential units. The language in the existing land use ordinance was identified as unclear in the 2006 Land Use Ordinance review. Page 2 of 7 OWW~, CITY OF -ASHLAND 15. Plaza/Public Space Requirement for Lar a-Scale Commercial Development Existing: II-C-3b)l, Section II-C-3 Draft Land Use 18-4.2.040.D.2.a Additional Standards for Ordinance: Large Scale Projects, Site Desi n and Use Standards Existing: Proposed: One square foot of plaza or public space shall be One square foot of plaza or public space shall be required for every ten square feet of gross floor area. required for every ten square feet of gross floor area, except for the fourth floor. Policy Objectives: To support the proposed amendment allowing increased building height in commercial zones. Comments: The proposed amendment is intended to go along with the proposed amendment to building height in the commercial zones that would allow buildings located at least 100 feet from residential zones to increase from three to four stories (item 5 on the Planning Commission report). If the City Council delays or removes the building height amendment, this amendment should also be delayed or removed. The focus group commented that the existing plaza requirement may impact the feasibility of increasing building height from three to four stories. The plaza/public space requirement applies to developments in the commercial and employment zones that are greater than 10,000 square feet in size or 100 feet in length and located in the Detail Site Review overlay. The Detail Site Review overlay includes the primary street corridors (e,g. N. Main St., downtown, Oak St., A St., Siskiyou Blvd., Ashland St. - see maps on pages 4-16 - 4-19 of the draft land use ordinance. 16. Definitions of Hotel and Motel Existing: 18.08.320 Draft Land Use 18-6.1.030 18.08.510 Ordinance: Existing: Proposed: Hotel - a building in which lodging is provided to guests Hotel/Motel - a building or portion thereof designed and for compensation and in which no provisions are made used for occupancy of transient individuals for a period of for cooking in the lodging rooms. less than 30 days, lodged with or without meals and which may include additional facilities and services, such Motel - A building or group of buildings on the same lot as restaurants, meeting rooms, entertainment, personal containing guest units for rental to transients, with services, and recreational facilities. separate entrances directly exterior and consisting of individual sleeping quarters, detached or in connected rows, with or without cooking facilities. Policy Objectives: To update definition to reflect contemporary transient accommodations. Comments: This amendment was identified as a substantive issue because it impacts the use of residential units in mixed-use buildings as hotel/motel units. The current definitions of hotel and motel, as interpreted by the City Council in 2005, prevent residential units in most mixed-use buildings in commercial and employment zones from being used as hotel or motel units. If the proposed amendment were approved, the physical building distinctions that were used in the past interpretation would be eliminated. As a result, an owner of a residential condominium in a larger mixed-use building could apply for a conditional use permit to use his/her unit as a hotel/ motel unit. Hotels and motels require a conditional use permit in the commercial and employment zones. In 2005, the City Council denied an application for a conditional use permit to use a third-floor residential unit in a mixed-use building in the downtown as a hotel/motel unit. The denial was based on that the existing structure did not meet the definition of a hotel or motel. Specifically, the Council found that: 1 the subject unit could not be considered Page 3 of 7 ~r, CITY OF -ASH LAN D a hotel unit because the unit included a kitchen and provisions for cooking in the lodging room; and 2) the subject unit could not be considered a motel because it was a single unit that didn't have an exit directly to the exterior. As a result of the Council's decision in 2005, short-term rentals have not been approved since that time in mixed-use buildings in the commercial and employment zones when the unit or buildings do not meet the current definitions of motel or hotel. The proposed amendment combines the definitions of hotel and motel to represent contemporary transient accommodations in commercial and employment zones. The existing definitions of hotel and motel are based on historical differences between the two types of buildings or facilities, but over time the distinctions have diminished. The revised definition is based on the state model code. The historical differences in hotels and motels are discussed in The Latest Illustrated Book of Development Definitions by Harvey S. Moskowitz and Carl G Lindbloom as follows. "There is little distinction between hotels and motels. Traditionally, the motel (motor-hotel) was a one or two-story, less- expensive accommodation catering to the automobile traveling public, with a majority of all rooms having direct access to the outside without the necessity of passing through the main lobby of the building. Today, rentals range across the entire economic spectrum, multistory structures are common, and motels may offer a full range of services, including restaurants, meeting rooms, entertainment and recreational facilities." 17. Effective Date of Type II Decisions Existing: 18.108.070.B.3.a Draft Land Use 18-5.1.0601 Ordinance: Existing: Proposed: Type II decision becomes final 13 days after the City Type II decision becomes final ten days after the City mails the notice of decision (i.e., adopted and signed mails the notice of decision (i.e., adopted and signed findings). findings). Policy Objectives: To provide timely decisions; provide consistency with state requirements in ORS 227.180. Comments: The time period between when the notice of decision is mailed and when it becomes effective is the time period in which a participant can file an appeal. The evaluation of the planning application procedures recommended adjusting the time period to provide a timely result for applicants. The draft land use ordinance also includes new language on computing time periods in 18-5.1.090.C that involve the effective date of Type II decisions. The new language on computing time periods specifies that: 1) the time period does not include the date the notice of decision is mailed; and 2) if the time period ends on a weekend or legal holida the eriod runs until the end of the next da that is not on a weekend or legal holiday. 18. Conditional Use Permit Approval Criteria Existing: 18.104.050.C.7 Draft Land Use 18-5.4.050.A.3.f Ordinance: Existing: Proposed: That the conditional use will have no greater adverse That the conditional use will have no greater adverse material effect on the livability of the impact area when material effect on the livability of the impact area when compared to the development of the subject lot with the compared to the development of the subject lot with the target use of the zone. When evaluating the effect of the target use of the zone. When evaluating the effect of the proposed use on the impact area, the following factors of proposed use on the impact area, the following factors of livability of the impact area shall be considered in relation livability of the impact area shall be considered in relation to the target use of the zone: to the target use of the zone: 1. Similarity in scale, bulk, and coverage. 1. Similarity in scale, bulk, and coverage. 2. Generation of traffic and effects on surrounding 2. Generation of traffic and effects on surrounding streets. Increases in pedestrian, bicycle, and mass streets. increases in pedestrian, bicycle, and mass Page 4 of 7 I WAN mo CITY OF -AS H LA N D transit use are considered beneficial regardless of transit use are considered beneficial regardless of capacity of facilities. capacity of facilities. 3. Architectural compatibility with the impact area. 3. Architectural compatibility with the impact area. 4. Air quality, including the generation of dust, odors, or 4. Air quality, including the generation of dust, odors, or other environmental pollutants. other environmental pollutants. 5. Generation of noise, light, and glare. 5. Generation of noise, light, and glare. 6. The development of adjacent properties as envisioned 6. The development of adjacent properties as envisioned in the Comprehensive Plan. in the Comprehensive Plan. 7. Other factors found to be relevant by the Hearing 7. The cumulative effect of the proposed conditional Authority for review of the proposed use. use with other conditional uses in the vicinity of the subiect site. The cumulative effect is measured by evaluating the concentration of conditional uses within 500 feet of the subiect site. 78.. Other factors found to be relevant by the Hearing Authority for review of the proposed use. Policy Objectives: To provide a measurable standard for evaluating the impact of a proposed conditional use on the surrounding neighborhood considering the existing impacts imposed on the neighborhood by other conditional uses that are already in lace. Comments: The proposed amendment adds an eighth factor that the can be considered in evaluating a conditional use application. Specifically, the new factor involves evaluating the impacts of adding a conditional use to a neighborhood considering the existing conditional uses that are already in place in the neighborhood. Examples of conditional uses in residential zones are professional offices and traveler's accommodations. In the early 1990's, residents of the railroad district expressed concern regarding the number of houses being converted to commercial conditional uses, and the resulting lack of a residential presence in the evening and on the weekends. The issue was also recently discussed in the review of the short-term rental ordinance amendments with concerns expressed specifically regarding the concentration of conditional uses and the potential impact on neighborhood character. SUMMARY OF OCTOBER 7 COUNCIL DIRECTION: In the October 7 discussion of the key amendments, there seemed to be general agreement on the Council whether to include, modify, or remove the amendments in the draft land use ordinance for first reading. The direction from the Council's October 7 discussion on the changes to the draft land use ordinance for first reading is summarized below. 1. cottage housing Amendment removed from the draft land use ordinance and returned to Planning Commission for further review. Concerns included allowing more flexibility in size of units, impacts of design standards on cost of units, appropriateness of cottage housing developments in R-1-3.5 and R-1-10 zones, and appropriateness of separation standard of 1,000 feet in all R-I zones. 2. solar orientation standards Delete requirements regarding design of habitable structures and roofs. Include amendments requiring new street and lot layout to have south facing sides for maximum solar access. 3. affordable housing density bonus Move forward amendments as proposed to increase the maximum density bonus for affordable housing in the multi-family zones from 25 to 35 percent and to revise the method of calculating the affordable housing density bonus. Page 5 of 7 I`, CITY OF ASHLAND 4. total density bonus Move forward amendment as proposed to increase the total density bonus in the multi-family zones from 40 t0 60 percent. 5. side yard setback abutting residential zones Move forward amendment as proposed to make buildings in the employment zone (E-1) setback from abutting residential zones ten feet for side yards, rather than ten feet per story for side yards. 6. building height in commercial zones Modify proposed amendment to require a conditional use permit to extend building height from three to four stories (i.e., up to 55 feet) in the commercial zones (C-1 and C-1-D) when the building is at least 100 feet from residential zones. Include modified amendment in draft ordinance for first reading. 7. building separation in large-scale commercial development Delete the existing requirement because it is counter to the other site design standards and to creating a pedestrian environment. 8. accessory residential unit review process Move forward amendment as proposed to require a site design review approval, rather than a conditional use permit, for accessory residential units in the single-family and rural residential zones (R-1 and RR). 9. threshold for public hearing for review of new buildings and additions in commercial and employment zones Move forward amendment as proposed to require a public hearing for buildings larger than 15,000 square foot in size or additions of more than 50 percent of the exiting buildings square footage for developments subject to basic site design review (i.e., Hersey St., N. Mountain Ave./E. Main St., airport, Washington St. and Jefferson Ave., Benson Way, and Tolman Creek Rd). For basic site design review, the existing land use ordinance requires a public hearing for buildings larger than 10,000 square feet or additions of more than 20 percent of the existing building's square footage. 10. porous pavement exemption from lot coverage in residential zones Modify provision allowing properties in residential zones to exceed the maximum lot coverage standard for areas covered in porous pavement. The change to the proposed amendment is that the maximum area developed in a porous solid surface can be up to two hundred square feet or five percent of lot coverage, whichever is less. The original amendment said two hundred square feet or five percent of lot coverage, whichever is more. The change in the amendment is to make the allowed overage in lot coverage proportional to the size of the lot. 11. front porch setback in residential zones Move forward amendment as proposed for the multi-family zones outside of the Historic District to make the required yard between an unenclosed porch and the front property line eight feet or the width of an existing public utility easement, whichever is greater. 12. building separation in residential zones Move forward amendment as proposed to require primary buildings in multi-family developments to be separated by half of the height of the tallest building, where building height is measured at the two closest exterior walls, and a maximum separation of 12 feet. Page 6 of 7 ! 1 WMA CITY OF -ASHLAND 13. building street frontage requirement for development in commercial and employment zones Move forward amendment as proposed requiring location of the building facade or multiple building facades to occupy the majority of a project's street frontage and allowing parking on one side, rather than both sides, of a building. At the October 7 Council meeting, an additional item was discussed concerning a parapet exemption in commercial and employment zones (G1, C-1-D, and E-1). Testimony was received suggesting that parapets be allowed to extend five feet above the maximum building height in the commercial and employment zones (C-1, C-1-D, and E-1). The draft land use ordinance includes a proposed amendment to allow parapets to be erected up to three feet above the maximum building height (Table 18-2.6.030, page 2-59). The Council discussed the issue and there seemed to be general agreement to modify the new parapet provision to five feet. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: If there are proposed amendments that are of concern to the Council, staff recommends Council direct staff to modify or remove those items from the draft and bring back a revised draft for a continued public hearing and first reading at a future meeting. Any amendments that are removed from the draft could then be reviewed separately if the Council so wishes while the revised land use ordinance moves forward. If there are amendments that are removed and the Council wants further review, any direction the Council could provide the Planning Commission and staff about areas of concern would be helpful. SUGGESTED MOTION: I move to direct staff to i ~>>,~A m~rlifv or remove the f-" - the o to bring back a revised draft for a continued public hearing and first reading at a future meeting. W tltA, Q,*VA d mt,~ I move to direct the Planning Commission to continue the review of the following potential land use ordinance amendments: (list amendments). ATTACHMENTS: none Page 7 of 7 Fr, CITY OF ASHLAND Council Communication November 4, 2014, Business Meeting Council adoption of strategic planning goals and objectives FROM: Dave Kanner, city administrator, dave.kanner@ashland.or.us SUMMARY: The City Council has, since last March, been engaged in a strategic planning effort to determine long- term goals for the City to pursue over the next six years. Over the course of many strategic planning meetings, the Council agreed on seven broad goal categories: Government; Organization; People; Environment; Economy; Energy and Infrastructure; and Public Safety. Within those broad categories, the Council identified 23 goals and 54 objectives (sub-goals). At a half-day meeting on October 4, 2014, the Council selected five goals and their attached objectives as its priority goals and the items that should be considered for discretionary funding in the next budget cycle. Those priority goals are: • Protect the integrity and safety of the watershed. • Market and further develop the Ashland Fiber Network. • Seek opportunities to enable all citizens to meet basic needs. • Evaluate real property and facility assets to strategically support city mission and goals. • Prepare for the impact of climate change on the community. The goals are presented for formal adoption by the Council BACKGROUND AND POLICY IMPLICATIONS: The City Council launched a long-range strategic planning session with a day-long meeting on March 8, 2014, at which it examined themes for Ashland's future, as well as the strengths, weaknesses, opportunities and threats for Ashland. Over the next seven months and through a series of strategic planning meetings, all of which were properly noticed and open to the public, the Council created a set of goals and objectives intended to guide the City to the year 2020. At the October 4, 2014, strategic planning session, the Council agreed on a set of seven broad goal categories, 23 goals and 54 objectives or sub goals. From these, the Council drew five goals (with their attendant objectives) to be the City priority goals that should be considered for funding in the next budget cycle. (See attached "Priority Strategic Planning Goals and Objectives.") The Council also divided the remaining goals and objectives into two categories: Those that were determined to be important enough to be pursued, but which will not be considered for funding in the 2015-17 budget cycle; and those that were determined to be Council policy decisions that can be pursued by the Council at its discretion. (See attached "Council goals/objectives, October 4, 2014.") Items highlighted in yellow in the goals and objectives document were deemed items worthy of further discussion. Page 1 of 2 CITY OF ASHLAND These goals and objectives are now presented for formal public adoption by the City Council. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends adopting or at least affirming these goals and objectives and discussing next steps in terms of soliciting input from boards and commissions, the public, and merging these strategic planning goals with the strategic planning goals of the Parks Commission. SUGGESTED MOTION: I move adoption of the City Council strategic planning goals and objectives as agreed upon by the Council at the October 4, 2014, strategic planning session. ATTACHMENTS Priority Strategic Planning Goals and Objectives Council goals/objectives, October 4, 2014 Page 2 of 2 EI Ashland City Council Priority Strategic Planning Goals and Objectives Protect the integrity and safety of the watershed. I ) Implement and maintain the Ashland Forest Resiliency project. 2) Educate and engage the community in watershed stewardship. a. Declare a "year of the watershed" and coordinate activities around it. 3) Maintain current Firewise communities and implement the Fire Adapted Communities model 4) Complete the expansion of the city's wildfire hazard zone to accurately reflect risk. 5) Fund the AF&R AIR programs 6) Continue to engage state and federal representatives on the AFR project. 7) Weed abatement on County land within the UGB (exotic species) Market and further develop the Ashland Fiber Network 1) Complete and implement an AFN strategy Seek opportunities to enable all citizens to meet basic needs. 1) Examine means and methods by which to improve access to mental health services in Ashland for Ashland citizens who need them. 2) Support and promote, through policy, programs that make the City affordable to live in. 3) Leverage partnerships with non-profit and private entities to build social equity programming. 4) Encourage the ongoing effectiveness of the Resource Center Evaluate real property and facility assets to strategically support city mission and goals. 1) Identify and evaluate underperforming assets. 2) Examine city hall replacement and other facility needs. 3) Examine long term use of Imperatrice property. Prepare for the impact of climate change on the community. 1) Develop and implement a community climate change and energy plan. Council goals/objectives October 4, 2014 MISSION STATEMENT To support a resilient, sustainable community that lives within its means and maintains the distinctive quality of life for which it has become known in the face of external change and internal development - via direct delivery of basic services and leveraged enablement of enhanced services. Government Leverage our regional and state relationships to increase effectiveness in relevant policy arenas The following izoal(s) and objectives were determined to be important enough to be pursued but will not be considered for funding in the 2015-17 budget cycle 1) Maintain coordination and regular communication with State Legislators/county commissioners a. Potential for regular reports to Council from assigned Councilor from Legislative hotline (during legislative session only) b. Explore the utilization of other forms of legislative representation (lobbyist, dedicated staff, etc) c. Develop a local legislative agenda prior to the session (possibly with Ashland Coalition partners) The following gal(s) and objectives were determined to be Council policy calls that can be pursued by the Council at its discretion. 2) Develop plan for coordination with Jackson County on the following: a. County Road Improvements within the City limits b. Weed abatement on County land within the UGB Promote effective citizen communication and engagement The following og al(s) and objectives were determined to be important enough to be pursued but will not be considered for funding in the 2015-17 budget cycle 1) Engage community in conversation about core services, desired service levels and funding mechanisms The following goal(s) and objectives were determined to be Council policy calls that can be pursued by the Council at its discretion. Page 1 2) Engage boards and commissions in supporting the strategic plan 3) Evaluate existing communication tools currently in use, such as: • Open City Hall • Listserve • RVTV • Newspapers • City website • Expand and promote those tools that are most effective, meaningful and efficient for the public to use for understanding an issue (fact gathering), enabling participation, providing avenues for input to Council and being made aware of decisions made. • Repackage and make more accessible Council Communication documents to assist in informing the public on issues. • Explore the use of Town Hall style meetings for Council/public interaction. • Explore "City Walk" style outreach program (Council and staff proactive personal engagement in the community). 4) Use the Mayor's State of the City (SOC) address to honor, recognize and appreciate community/volunteer involvement. a. Incorporate Ragland Award activities (and other potential volunteer related activities) with SOC Support and empower our community partners The following- goal(s) and objectives were determined to be Council policy calls that can be pursued by the Council at its discretion. 1) Look for ways to monitor and support changes at Southern Oregon University. 2) Monitor and support Mt. Ashland as a major regional recreational facility. a. Continue City oversight of the environmental impacts of the ski area as they relate to Ashland. 3) Support the non-profit and cultural entities in the community. 4) Support RVTD in fulfilling and expanding its mission. Organization Evaluate real property and facility assets to strategically support city mission and goals. Page 2 1) Identify and evaluate underperforming assets. 2) Cultivate external funding opportunities 3) Examine city hall replacement and other facility needs. 4) Examine long term use of Imperatrice property. People Seek opportunities to enable all citizens to meet basic needs. 1) Examine means and methods by which to improve access to mental health services for Ashland citizens who need them. 2) Support and promote, through policy, programs that make the City affordable to live in. a. Pursue affordable housing opportunities, especially workforce housing. Identify specific incentives for developers to build more affordable housing. 3) Leverage partnerships with non-profit and private entities to build social equity programming. The following goal(s) and objectives were determined to be important enough to be pursued but will not be considered for funding in the 2015-17 budget cycle Develop supports to enable citizens to age in Ashland. 1) Support and augment existing programs. 2) Provide links to local non-profit support organizations on City web site. 3) With Parks Commission, explore expansion of the Senior Center and senior services. Keep Ashland a family friendly community. 1) Support educational and enrichment programs in the community. 2) Provide City promotion and marketing of family-oriented events. 3) Support land-use plans and policies that encourage family-friendly neighborhoods. Environment Protect the integrity and safety of the watershed. Page 3 1) Implement and maintain the Ashland Forest Resiliency project. 2) Educate and engage the community in watershed stewardship. a. Declare a "year of the watershed" and coordinate activities around it. Enhance and expand natural and recreational resources The following goal(s) and obiectives were determined to be important enough tL o be pursued but will not be considered for funding in the 2015-17 budget cycle 1) Work with the local bicycle community on enhancement of recreational opportunities. 2) Analyze and expand eco-tourism opportunities. 3) Support Mt. Ashland in diversifying eco-friendly recreational opportunities. 4) Support the local trails organizations and trail mapping The following, -oal(s) and objectives were determined to be Council policy calls that can be pursued by the Council at its discretion. 5) Examine and improve the process for obtaining permits for bicycle and road race events. Support local micro-agriculture and food production The following goals and objectives were determined to be important enough to be pursued but will not be considered for funding in the 2015-17 budget cycle 1) Design policies that allow and encourage micro-agriculture. a. Encourage the development of community gardens, farmer's markets, truck gardens and infrastructure. Prepare the community for natural and human-made disasters. The following goal(s) and objectives were determined to be important enough to be pursued but will not be considered for funding in the 2015-17 budget cycle 1) Address the seismic vulnerability of downtown. 2) Develop a comprehensive, at-home disaster preparedness program for all citizens. Update the Comprehensive Plan. Develop and support land use and transportation policies to achieve sustainable development. Page 4 The following goal(s) and objectives were determined to be important enough to be pursued but will not be considered for funding in the 2015-17 budget cycle 1) Create incentives and ordinances for energy-efficient buildings. The following aoal(s and objectives were determined to be Council policy calls that can be pursued by the Council at its discretion. 2) Develop infill and compact urban form policies. (Assigned to Planning Commission.) 3) Support alternative transportation choices. Encourage and/or develop public spaces that build community and promote interaction. Economy Seek opportunities to diversify the economy in coordination with the Economic Development Strategy. The following goal(s) and objectives were determined to be Council policy calls that can be pursued by the Council at its discretion. 1) Support film industry growth. 2) Evaluate barriers to business start up and expansion. Nurture emerging new technologies 1) Position ourselves as a location where high-tech businesses want to grow 2) Promote the e-commerce zone Market and further develop the Ashland Fiber Network 1) Complete and implement the AFN business plan Diversify transportation and shipping options The following goal(s) and objectives were determined to be important enough to be pursued but will not be considered for funding in the 2015-17 budget cycle 1) Strengthen the Ashland municipal airport as an enterprise. 2) Develop and encourage alternative transportation options. Page 5 Ensure that commercial and industrial areas are available for development The following goal(s and objectives were determined to be important enough to be pursued but will not be considered for funding in the 2015-17 budget cycle 1) Examine Croman redevelopment plan. 2) Evaluate the prospects for the redevelopment of the railroad property. The following goal(s) and objectives were determined to be Council policy calls that can be pursued by the Council at its discretion. 3) Use existing financial tools to support re-development. 4) Create predictable pathways for development of employment land. Embrace and plan ahead for emerging social trends that might impact the economy and vitality of the community. Energy and Infrastructure Be proactive in using best practices in infrastructure management and modernization. The following goal(s) and objectives were determined to be important enough to be pursued but will not be considered for funding in the 2015-17 budget cycle. 1) Complete downtown parking management and traffic circulation plan. 2) Expand public transportation options. The following goal(s) and objectives were determined to be Council policy calls that can be pursued by the Council at its discretion. 3) Re-examine and review master plans and SDCs on regular basis. Prepare for the impact of climate change on the community. 1) Reduce energy dependence through local energy generation. 2) Seek carbon neutrality. Page 6 3) Develop rigorous conservation plans for energy and water. 4) Complete internal and community-based sustainability plans. Public Safety Support innovative programs that protect the community Page 7 CITY OF ASHLAND Council Communication November 4, 2014, Business Meeting AFN Business Plan Approval and Funding Options FROM: Mark Holden, director of information technology and electric, mholdengashland.or.us SUMMARY This item seeks Council approval of the Ashland Fiber Network Strategic Business Plan October 2014 (Plan) and asks Council to direct staff to develop and implement funding. Council reviewed and discussed the draft AFN Strategic Business Plan in detail at the October 6, 2014 Study Session. Council indicated a preference for the development of the internet and new fiber services recommended in the Plan. At the same Study Session, Council requested the draft Plan be revised to allow for a greater variety of funding options. The Plan has been restated to reflect the analysis under way in cooperation with City Administration and City Administrative Services (Finance). The final Plan no longer specifies the precise funding mechanism, rather funding is identified to be developed in cooperation with the City Administration and Administrative Services (Finance) departments. Approval of the Plan and direction to implement funding will begin the execution phase of the Plan. Staff will then develop operational tactics in order to achieve the benefits contained in the Plan. BACKGROUND AND POLICY IMPLICATIONS: Ashland Fiber Network is at a crossroads. Within the Plan two alternative directions were presented. The first alternative provides for the development of a new family of products based on optical fiber technology and an increase in internet capacity. The second alternative does not include new products but does provide an increase in internet capacity. Both alternatives suggest a new approach to the market and a need for additional funding. Funding measures are needed in order to achieve the benefits envisioned in the strategic plan. At the October 6, 2014 Study Session Council indicated a preference for the first alternative. As part of the Strategic Plan, two strategic projects are identified. • FY2016: Increasing internet bandwidth - required to maintain/improve the current performance of the network (key to customer satisfaction) and provide for additional new customers • FY2017: Development of a new fiber based service - provides advanced services and a new revenue stream The Plan determines the direction, priorities and long term viability of AFN. Detailed tactical plans, project plans and budgets will be guided and developed as a result of funding and implementing the strategic plan. The Council also requested that the City Administrator present options for starting the expansion and upgrade of AFN in the current fiscal year, rather than waiting for the next budget cycle. Page] of 2 ,v, CITY OF -ASH LAN D A memo outlining how that could be achieved, as well as financing options for the preferred alternative is attached. FISCAL IMPLICATIONS: Implementing the Council's preferred option will cost $600,000 over the course of the next three years. A memo is attached from the City Administrator outlining options for funding that work and for initiating upgrades and expansion of AFN in the current fiscal year. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff is asking for council approval of the Ashland Fiber Network Strategic Business Plan October 2014 including the recommended implementation of the internet and new fiber services envisioned in the Plan. Staff is asking for Council to direct staff to develop and implement a workable funding solution. SUGGESTED MOTION: 1. 1 move to approve the Ashland Fiber Network Strategic Plan dated October, 2014. 2. I move to direct staff to implement the funding solution for the internet and fiber services envisioned in the Plan, described in the City Administrator's October 29, 2014 memo as ATTACHMENTS: Ashland Fiber Network Strategic Business Plan, August 2014 (draft) Memo to Mayor and Council regarding AFN financing options Ashland Fiber Network Strategic Business Plan, October 2014 (final) Page 2 of 2 CITY OF ASHLAND Memo DATE: October 29, 2014 TO: Mayor and City Council FROM: Dave Kanner, city administrator RE: Financing options for AFN improvements The Council, at its October 6 study session, received the Ashland Fiber Network Strategic Business Plan, and expressed its preference for pursuing an option whereby the City will invest $600,000 over the next three years for the purpose of upgrading the speed and reliability of the system and preparing to offer "Fiber to the Premises" service for commercial and industrial customers. The Council also expressed an interest in getting to work on these upgrades in the current fiscal year rather than waiting until the next budget cycle. This is problematic, since there is no money appropriated specifically for this purpose in the current budget cycle. The draft business plan presented on October 6 proposed to fund the required upgrades by having the City forgive AFN central service fees in the amount of $200,000 a year for three years. I do not support this proposal, as it pushes the cost of internal services off onto all other funds (unless we were to cut a concurrent amount from Central Services, which would be very difficult to do in such a small fund). Some have suggested using an unappropriated fund balance in the Central Services Fund to cover the reduced contribution, but I do not support that option, either, as there are other, very legitimate uses of that fund balance for true internal service purposes, some of which support the Council's primary strategic planning goals that I would consider to be a higher priority for Central Service funds. These uses can and should be considered in the budget-setting process. There are, however, a number of other options to consider, one of which could provide funding to jump start the AFN improvement process in the current fiscal year. Those options are as follows: 1. (PREFERRED OPTION) Use economic development funds, supplemented by funds from the reserve fund., AFN's upgrade costs could be covered by using $100,000 annually from the Economic Development Program and $100,000 annually from the reserve fund. There remains about $85,000 in unspent Economic Development Program funds in the current fiscal year that could be used to jump start the improvements. Those funds had been allocated for the next phase of the Business Retention and Expansion Study, marketing AFN to commercial and industrial customers and additional GIS support for phase 2 of the Chamber's Business Portal. This strategy does mean that economic development ftmds normally used for programmatic activities would be used exclusively for AFN for a period of three years (or longer, if we choose to reimburse the reserve fund), however the use of these funds for AFN is consistent with the ~r, Economic Development Strategy and with implementing actions within the Strategy. What's more, if developing AFN into a competitive force is truly our economic development priority, as I believe it should be, the expenditure is more than justified. The Reserve Fund is, by resolution, intended to be used for capital expenditures "for which sufficient funding sources have not been identified," and this clearly qualifies. 2. Use the Reserve Fund. As noted above, these AFN upgrades would qualify for using the Reserve Fund. The Reserve Fund has more than enough money in it to pay for this and using the Reserve Fund impacts no other City programs. However, per the resolution establishing the Reserve Fund, appropriations from the Fund must be approved by the Budget Committee as part of the annual budget process. Therefore, money from the Reserve Fund would not be available until next fiscal year. 3. Reduce AFN's annual debt service payments and spread those costs to the other funds that currently contribute to the debt. AFN currently contributes $409,000 annually toward a debt service payment of $1,150,000. Other funds that contribute to debt service are Electric ($541,300), General Fund ($95,150), Water ($78,200), Waste Water ($95,800) and Streets ($30,000). If AFN's debt service payment was reduced by $200,000 and that amount spread across other contributing funds in a proportion equal to what they currently pay, the annual increases would be as follows: Electric: $128,812 Waste Water: $22,797 Water: $18,609 General Fund: $22,643 Streets: $7,139 Except for Electric, these are not unmanageable increases. The increase in Electric, however, translates into a 1% increase in electric rates or a decrease in other Electric Department expenditures, most likely in capital projects. PrWAIR Ashland Fiber Network Strategic Business Plan October 2014 How cii, Ashland Connects City Of Ashland Information Technology Department, Telecommunications Division 90 North Mountain Ashland, OR 97520 Telephone: 541-552-2222 Fax: 541-552-2436 Table of Contents Executive Summary 4 General Company Description 5 Mission Statement 5 Strategic Goals 5 Strategic Objectives 5 Business 7 Market 7 Industry 7 History 7 Core Competencies/Strengths 8 Challenges 9 The Long Term 9 Residential Products .....................................................................................................................................12 Commercial Products ...................................................................................................................................13 Government/Education Products ............................................................................................................13 Health Care Products ....................................................................................................................................13 ISP/CLEC Products ........................................................................................................................................14 Competitive Advantages ..............................................................................................................................14 Competitive Disadvantages ........................................................................................................................15 Pricing .................................................................................................................................................................15 Marketing Plan .....................................................................................................................................................15 Economics .........................................................................................................................................................15 Demand .........................................................................................................................................................18 Trends ............................................................................................................................................................18 Barriers to Entry ........................................................................................................................................19 External Factors .........................................................................................................................................19 Products .............................................................................................................................................................20 Internet Based Products .........................................................................................................................20 Ethernet Based Products ........................................................................................................................20 Customers .........................................................................................................................................................20 Page 2 Printed: 10/29/2014 Competition ......................................................................................................................................................22 Competitive Analysis ................................................................................................................................23 Niche ....................................................................................................................................................................24 Marketing Strategy ........................................................................................................................................24 Distribution (Placement) ............................................................................................................................25 Sales Forecast ...................................................................................................................................................27 Fiber Service to the Premise (new) ....................................................................................................27 Financial Performance and Forecast ...........................................................................................................31 Performance .....................................................................................................................................................31 Forecast ..............................................................................................................................................................3 3 Appendix A - AFN Services Analysis - Count and Revenue ...............................................................36 Appendix B - AFN Channel Analysis - Services Distribution by ISP ...............................................37 Appendix C-Current AFN Rates Structure ..............................................................................................38 Appendix D-Proposed AFN Rates Structure ..........................................................................................40 Tables and Figures ..............................................................................................................................................41 Endnotes ................................................................................................................................................................42 Page 3 Printed: 10/29/2014 Executive Summary Ashland Fiber Network (AFN) is at a crossroads. AFN must decide whether to move forward with new services and a new approach to the market or to simply work to maintain existing services and infrastructure. AFN can choose, as it has in the past, to continue to improve telecommunications services in Ashland and challenge the competition to match or exceed AFN's initiative. Alternatively, AFN can choose to provide current services until those services are outdated and displaced by the competitive market. The path forward has risks, requires investment, and is subject to competitive reaction. The strategic plan provides a focus on operating in a competitive environment and the strategic changes needed to become a viable competitor. This plan discusses the choices, the strategies and the outcomes. The recommended path is to move forward with new investment in fiber based services. Should funding not be available to move forward, an alternative maintenance strategy is recommended. Since AFN's inception there have been conflicting pressures. AFN operates as both a division of the city and a competitive telecommunications provider. With expectations of operating as a city service providing community benefit, yet deriving funds from the competitive market, AFN has struggled to generate the revenue necessary to fulfill both roles. AFN's ambitious initial investment did not gain AFN the market penetration necessary to meet either of its roles. AFN has delivered or been the catalyst for the state of telecommunications in Ashland (Google "Oregon 2013 eCity"); AFN must now make a decisive move into the future. AFN is fortunate to have a robust fiber infrastructure. With this infrastructure AFN is well positioned to offer next generation fiber based telecommunication services. The technology for delivery of new fiber based services is commercially available and is installed in other parts of the country. The mechanism for funding the investment necessary to implement new services will be determined through additional work with the City Administration and Administrative Services (Finance) departments. If funding is not possible, an alternative maintenance strategy is available. Market momentum is currently in our competitor's favor. Continuing to react (slowly) to the competition will continue to reduce AFN's market share and revenues. AFN has a narrow window of opportunity to gain market share and to gain market momentum. To do this, AFN will change its approach to the market and aggressively compete with the larger incumbent for revenue. AFN will promote AFN services in competition with the large incumbent. While the incumbent often uses pricing as its means of differentiation, AFN will use new services, performance, reliability, customer service and a consumer desire to deal locally ("recycle dollars") to gain advantage. With a new family of services and an agile approach to the market, AFN will provide advanced telecommunication services, garner market share, and begin the journey to successful self-funding. These outcomes will not be quick and there is a narrow window of opportunity to establish market position. Printed: October 29, 2014 Page 4 of 44 Revised: October 29, 2014 General Company Description Mission Statement Ashland Fiber Network (AFN) is a Municipal Telecommunications Utility providing community based solutions and services to enhance the quality of life and economic growth of the community by eliminating the constraints of location, distance, and time. Strategic Goals • Enhance competitive advantages • Improve distribution channel' effectiveness • Transition to an agile organization • Change focus from product to market and solution focus • Ensure long term fiscal viability • Re-establish technological innovation/leadership • Maximize the community value of the network through the continued evolution of the infrastructure Strategic Objectives • Enhance competitive advantages o Maintain customer service advantage o Develop advanced/required products o Gain market share • Improve distribution channel effectiveness o Community involvement/local presence o Regular utility bill inserts o Establish performance benchmarks • Transition to an agile organization o Gain service design flexibility o Openly market AFN's brand and services (UB) o Preemptive and quick response to competition • Change focus from product to market and solutions o Use Chamber data base to directly target customer segments o Solicit feedback from market segments and respond with relevant services o Improve reliability and performance Printed: October 29, 2014 Page 5 of 44 Revised: October 29, 2014 • Ensure long term fiscal viability o Grow customer market share o Reduce bandwidth and internal expenses o Successfully deploy services • Re-establish technological innovation leadership o Deploy Google City Fiber-like enterprise services to local businesses o Design, engineer, and implement a physically diverse bandwidth path to a Tier 1 point- of-presence" o Deploy competitive and reliable cable modem services to residents and small businesses • Maximize the community value of the network through the continued evolution of the infrastructure o Enable new technologies o Maintain service standards o Provide community access when possible Printed: October 29, 2014 Page 6 of 44 Revised: October 29, 2014 Business Operating in a competitive telecommunications environment, AFN is a "last mile'ii" supplier of telecommunication services to the residential, commercial, governmental/educational, healthcare and alternative telecommunications provider (Internet Service Provider and Competitive Local Exchange Carrier - ISP/CLEC) market segments. AFN operates in and around the City of Ashland. Since 2001, AFN has developed and maintained a hybrid fiber coaxial network. The network enables AFN to serve the market with both the active and passive services required: TV programming (partner), Ethernet circuits, internet, dark fiber, collocation, and telephony (partners). Market AFN's target market is the telecommunications users in and around the City of Ashland. The telecommunications market consists of five market segments: residential, commercial/industrial, government/educational, healthcare and alternative telecommunication providers (ISP/CLEC). While based on similar technologies, the commercial/industrial, health care, and ISP/CLEC market segments require or value customized features. The largest market segment is residential. The residential market is a commodity market. Industry The telecommunications industry has both mature commoditized components as well as high growth components. While fixed rate services such as TV and telephony are mature and have become commodities, other services such as internet, Ethernet and collocation continue to expand in both purpose and volume of use. The industry is driven by new and growing technologies. The influence of these technologies has opened the need for networks capable of supporting such technologies as Cloud Services",1PTV/OTT' and Information and Communications Technology (ICT"'). These technologies continue to pressure existing networks for both performance and reliability. AFN is focused on the delivery of the current and emerging technologies. There are three broad access and delivery technologies - wireless, metallic cable and fiber optic cable. Wireless continues to grow as the number of wireless devices is expected to surpass wired devices in 2016. The growth in wireless is dominated by cellular technology. Metallic cable represents the largest installed telecommunications technology. Metallic cable ranges from plain old telephone system (POTS) twisted pair to coaxial cable. Both technologies continue to move forward in bandwidth capacity. Fiber optic cable currently provides the backbone (backhaul) capacity for the other technologies. As costs have come down and bandwidth demand continues to go up, fiber is the future proof technology in telecommunications (backhaul, middle mile and last mile). AFN expects these broad trends to continue. Historyvii Ashland was a first mover in bringing telecommunications services to the City of Ashland (internet). The City of Ashland's Electric Department developed its proposal for creating Ashland Fiber Network in the late-1990s. The proposal responded to the regulatory, market, and public environments of the period. Communications technology and everything internet were growing exponentially, stock markets were at historically high levels, capital markets were flush with low- interest money, the Federal government prioritized competitive telecommunications services through the Federal Telecommunications Act of 1996, and the deregulation of energy markets created an Printed: October 29, 2014 Page 7 of 44 Revised: October 29, 2014 unknown future for public electric utility providers. Ashland Electric Department saw the creation of AFN as an opportunity for the City to create a telecommunications utility to meet demand for communications services in Ashland and diversify/strengthen the City's electric business. Ashland's City Council approved the Electric Department's plan to build a fiber optic communications ring in February 1997 and the City's AFN Implementation Team was formed. The AFN business plan was presented by the Electric Department to Ashland's City Council in late-1998 and was approved by Council. That plan intended for Ashland Fiber Network to be self-supporting through revenues, with initial construction debt repaid by operating revenues within a ten-year period. The AFN project experienced financial problems quickly after launch. Construction costs far exceeded estimates and the envisioned system build out was curtailed. Charter Communications purchased TO and rebuilt the TO network in Ashland creating a strong competitive alternative. Active price competition ensued. The telecommunications utility failed to generate positive net revenues as planned. A pivotal moment for Ashland Fiber Network came in 2004, when the City of Ashland determined that AFN would not be able to pay its business and intra-fund loans. Bonds for 15.5 million dollars were issued to consolidate AFN-related debt and to provide a measure of financial stability. AFN continued to struggle to define its business and identity over the ensuing years. Multiple directors (five in seven years) brought their strategy, focus, and organizational structure to bear in an attempt to make AFN viable. Activities included investing in unsuccessful services, contracting out the operation of AFN's cable TV business, separating AFN from Ashland's Electric Department, blending mutually beneficial resources between AFN and the City Computer Services Division and refocusing AFN on providing Ethernet and internet services. The lack of consistent, successful, long-term direction created brand issues and market confusion providing the competition with the momentum to gain market share. The events led to worsening financial performance by the division. In FY2013 - FY2014 AFN reinvested in technologies to bring the AFN cable network back to a state of competitive technology. This effort allowed AFN to provide services on par with the competition. In FY2013 technologies were added to increase both reliability and performance capacity for the network. In FY2014 an engineering review of the network and follow-on projects further increased reliability. In FY2014 new node groups were created and all groups were rebalanced to provide better reliability, better response and improved services. Moving forward, lacking significant change in how AFN addresses the market and competition, AFN will continue to ebb downward. In addition, lacking investment in successful new services, AFN will not survive the inevitable evolution from metallic cable based services to fiber based services. Core Competencies/Strengths AFN has the experience, infrastructure and service mix to provide and compete for the telecommunications services needed within Ashland. Customer service (local, friendly, and competent) combined with citizen penchant for community centric economics (recycling local Printed: October 29, 2014 Page 8 of 44 Revised: October 29, 2014 dollars within the community) strengthen AFN's position vis-a-vis the competition. Additionally, the existing infrastructure represents a barrier to entry for any new competitors. Challenges AFN has been inconsistent and unsuccessful in new service development. AFN must design new services not only to meet the needs of the customers but to take momentum away from the competition. AFN's confusing service offerings together with confusion caused by the distribution channel has produced a vague and confused image which, when coupled with constrained marketing efforts, has led to market share loss. AFN must become the company known for its solutions and ease of doing business. Investment is needed to lower variable product costs (internet) and significantly increase the competitiveness of the internet product set. Additional investment in a targeted fiber based roll-out will provide a service not available from the competition. The targeted investment will put AFN in a product leadership position. The fiber services investment will provide Ashland businesses with the reliability required to leverage Cloud Services and the World Wide Web. AFN is at a crossroads; shall AFN continue as a shadow provider or become an active competitor of Charter Communications/Comcast? AFN must pick an identity, a mode of operation. AFN must then be empowered to pursue the strategies and tactics necessary to gain success. AFN can be a successful competitor in its traditional residential market if cost structures and distribution channels are improved. AFN can serve emerging demand with new fiber based products. AFN can become a self-sustaining City enterprise if necessary investments are made to fund competitive internet and new fiber services. Risk exists. If competition should decide to build fiber to compete with AFN, it is unlikely AFN could compete on a citywide scale. While this would lead to decreased revenues for AFN, it would accomplish the goal of having a fiber network in Ashland to enhance connectivity and enable economic growth. The Long Term AFN has a narrowing opportunity to be a provider of key telecommunication services to the Ashland Community. AFN has the opportunity to see growth beginning in FY2017. The growth requires capital investment and an agile, competitive AFN. To compete, AFN must operate as an efficient telecommunications provider focusing on services and revenue. AFN must change its focus from products to markets and provide solutions to the targeted market segments: residential, commercial/industrial, government/educational, health care and ISP/CLEC. If focused on services and the needs of these markets, AFN can be successful. Printed: October 29, 2014 Page 9 of 44 Revised: October 29, 2014 Telecommunications is a fast paced change or perish competitive environment. Technologies move forward, become cheaper and then outdated. Risks are ever present. Competitors gain advantage though technology, merger and even bankruptcy reorganization. With a focused change in strategy and investment, AFN can continue to serve the existing markets and fulfill a vital (and otherwise potentially vacant) role in the City's quality of life and economic development. Alternative long term strategies are outlined below together with probable outcomes and requirements. The strategies are: 1) Move Forward: (horizon: perpetual) a) Principles i) Regain residential market share - provides time and funding for new services ii) Operate under a build to revenue model iii) Roll out FTTx°"' solutions (see ii above) iv) As technology is supplanted (1) phase out coax assets (retaining all fiber) (2) right-size AFN b) Outcomes/Requirements i) Provides a build to revenue deployment model ii) Provides community deployment of fiber based services iii) May attract investment by competition (Charter/Comcast) to deploy fiber iv) Requires investment to reduce internet costs v) Requires investment in technology for FTTx vi) Requires funding source for investments (1) To be identified in cooperation with City Administration and Administrative Services (Finance) departments. Choice 1 is the same as choice 2 (next page) with the addition of fiber services. Note this strategy is long term and execution will depend upon the success of developed revenue streams. Success under this scenario is highly contingent upon the national competitor not making significant investment in their current plant or deploying more advanced fiber based services. Printed: October 29, 2014 Page 10 of 44 Revised: October 29, 2014 2) Maintain: (horizon: 7-15 years) a) Principles i) Regain residential market share - provides time and sustaining funds ii) Operate under a build to revenue model iii) When technology is supplanted (no longer economically viable) (1) Dispose of coax assets (retaining all fiber for City operations) (2) close AFN b) Outcomes/Requirements i) Does not deploy fiber services to the community ii) Stalls interest the competition may have in developing fiber services iii) Requires investment to reduce internet costs iv) Requires funding source for investment (1) To be identified in cooperation with City Administration and Administrative Services (Finance) departments. This is the same as option 1 above with the elimination of new fiber services. Success under scenario 2 is highly contingent upon the national competitor not making significant investment in their current plant or deploying more advanced fiber based services. Should the City decide at some point to sunset AFN, exit strategy scenarios and possible outcomes may be: 3) Sunset: (horizon: tbd) a) Principles i) Dispose of assets and close AFN b) Outcomes/Requirements i) Eliminates operating costs ii) Loses AFN contribution to debt repayment iii) Loses AFN contribution to central services iv) Does not provide fiber services to the community v) Stalls any interest the competition may have in developing fiber services Printed: October 29, 2014 Page 11 of 44 Revised: October 29, 2014 Products and Services AFN provides products and services to meet the critical telecommunications needs of the market segments addressed (residential, commercial/industrial, government/education, health care, ISP/CLEC). AFN's products are primarily derived from the delivery of Ethernet and/or internet circuits. Collocation services are available and play a role in securing long term circuits. Value added features are available to provide a better value proposition for both Ethernet and internet products. Products are customized based on the need of the market segment served. The industry trend is to higher performance (speed) and high reliability products. According to J.D. Power, performance and reliability are by far the most important components of customer satisfaction.ix In addition to the core product the following value added features are available: Ethernet based products: • Quality of Service, prioritizes customer traffic over competing traffic on the network • VLAN", virtual local area network, provides a secure, private connection (tunnel) between two points using a public network • Trouble shooting and technical support Internet based products: • Bursting rate, additional bandwidth available above the customer committed rate over a short (burst) time period • IP address, permanent, unique address for identifying the customer to the internet • Trouble shooting and technical support Residential Products The residential market segment (residential, SOHO') purchases the Ethernet and internet based products. The physical delivery of the product is through a Hybrid Fiber Coax (HFC) cable plant (cable modem) technology and wireless technology. The products for this segment tend to be lower bandwidth and for personal use. The products are low margin and very price sensitive. Reliability is a key driver for this market segment. Ethernet based products are determined by the bandwidth and any additional feature set selected by the customer (please see Ethernet based products above). Internet based products are determined by bandwidth and any additional feature set selected by the customer (please see Internet based products above). This market segment rarely chooses value added features. To ease new service startup or switching from a competitive service AFN provides: • End user hardware (cable modem) • Installation services, service turn-up, additional cabling of residence Printed: October 29, 2014 Page 12 of 44 Revised: October 29, 2014 • Consulting services, design of house network, trouble shooting resident hardware and network Commercial Products The commercial market segment (commercial, industrial) purchases the Ethernet and internet based products. The physical delivery of the product is through either Hybrid Fiber Coax (HFC) cable plant (cable modem) technology, fiber based technology, or wireless technology. These products tend to be high usage, moderate bandwidth and for business use. The commercial segment also purchases the collocation product. This segment depends on AFN's products and experiences economic benefit from their use. The products have a strong margin and price sensitivity is often determined by the importance of the usage and size of the business. Reliability and consistent performance are key drivers for this market segment. Ethernet based products are determined by the bandwidth and any additional feature set selected by the customer (please see Ethernet based products above). Internet based products are determined by bandwidth and any additional feature set selected by the customer (please see Internet based products above). Additional product features such as bursting and quality of service are valued in this market segment. Government/Education Products The government/education market segment purchases the Ethernet and internet based products. The physical delivery of the product is through either Hybrid Fiber Coax (HFC) cable plant (cable modem) technology or fiber based technology. These products tend to be high usage, high bandwidth and for business use. This market segment also purchases the collocation product. The segment depends on AFN's products and experiences high public service benefit from their use. The products have a low margin and are price sensitive. Reliability, bi-directional symmetry, and consistent performance are key drivers for this market segment. Ethernet based products are determined by the bandwidth and any additional feature set selected by the customer (please see Ethernet based products above). Internet based products are determined by bandwidth and any additional feature set selected by the customer (please see Internet based products above). Additional product features such as quality of service, VLAN and IP addressing are valued in this market segment. Health Care Products The health care market segment (hospital, medical group/office) purchases the Ethernet and internet based products. The physical delivery of the product is through either Hybrid Fiber Coax (HFC) cable plant (cable modem) technology or fiber based technology. These products tend to be high usage, high bandwidth, and for medical and business use. Though valuable to the segment, to date the segment has not purchased any collocation product. This segment depends on AFN's products and experiences high economic and service benefit from their use. The products have a strong margin. Price sensitivity is low and determined by the critical nature of the information moving across or being sheltered in the product. Reliability, bi-directional symmetry, and consistent Printed: October 29, 2014 Page 13 of 44 Revised: October 29, 2014 performance are key drivers for this market segment. Ethernet based products are determined by the bandwidth and any additional feature set selected by the customer (please see Ethernet based products above). Internet based products are determined by bandwidth and any additional feature set selected by the customer (please see Internet based products above). Additional product features such as bursting, quality of service, VLAN and IP addressing are valued in this market segment. ISP/CLEC Products The ISP/CLEC market segment purchases the Ethernet and internet based products. The physical delivery of the product is through Hybrid Fiber Coax (HFC) cable plant (cable modem) technology and fiber based technology. A major portion of AFN's revenue is derived from this segment. Revenue is derived primarily through the delivery of TV (ISP partner) and/or internet services directly to the ISP's customers. The ISP provides support and billing services to the customer. With the exception of TV content, AFN provides the product. The products are delivered to residential, commercial and health care segments. Product usage follows the patterns for these segments as discussed above. This market segment also purchases the collocation product. The segment depends on AFN's products and experiences economic benefit from their use. The products have margins below the comparable AFN direct supplied products and are price sensitive. Ethernet based products are determined by the bandwidth and any additional feature set selected by the customer (please see Ethernet based products above). Internet based products are determined by bandwidth and any additional feature set selected by the customer (please see Internet based products above). Competitive Advantages AFN has these competitive advantages: • Fiber infrastructure: AFN's fiber infrastructure is situated to readily serve commercial/industrial, government/education, and health care markets. The fiber optic infrastructure is within one thousand feet of eighty-five percent of the City's commercial locations. The infrastructure currently serves both as a transport ring for the coax (cable) system and as a backbone for customer connectivity. This investment in infrastructure represents a significant barrier to existing and new competitors. • Local Customer Service. From installation to customer care, everything is provided within Ashland. Local staff, with knowledge of the Ashland mores, provides a consistent, professional, and friendly user experience. • Recycling Revenue. Customer dollars stay in the local community and support the expansion of telecommunication services in Ashland. Printed: October 29, 2014 Page 14 of 44 Revised: October 29, 2014 Competitive Disadvantages AFN has these competitive disadvantages: • Product Cost Structure: AFN's cost of internet service is currently significantly higher than our competitors. The cost structure makes it difficult to compete with a national carrier on a price basis (service and promotions). • High Fixed Costs: Fixed costs of labor, central service allocations and debt service account for a significant portion of operating costs. • Distribution channels/Market confusion: Some agency issues with channel products and services. Confusion with end customers over who is the provider and who is responsible for support. No clear service or customer care brand. • Competitor: Competitor is well-funded, has national (international) buying power and has active and aggressive marketing campaigns. • Government Transparency: The strategies, plans and outcomes of AFN are in the public domain. The strategies and plans are laid bare to the competitor who then has perfect knowledge and can plan and implement counter strategies to ensure their competitive success. Pricin Pricing for the residential, small commercial, small industrial and small health care is set primarily by the competitive market. While the products serving these market segments are commodities, differentiation is possible thru good customer service. Pricing for larger commercial, industrial and health care segments are a combination of market and the customer's value proposition. Pricing for government and education market segments is set through a standardized bidding process. The price point is usually close to the cost of providing services. AFN operates in a competitive market. AFN must set its pricing appropriately; high enough to cover expenses and fund capital investment and low enough to garner sales. Marketing Plan Economics "The telecommunications industry is in a state of continuous technological and economic flux driven by intense competition and new technologies""." The development of new Information Technologies such as Cloud Services, video services (IPTV, OTT), Information and Communications Technology (ICT) and social communication services (Facebook, Twitter, etc.), is quickly increasing the demand for telecommunication services. The expanding use of telecommunications services also requires higher performance and reliability levels from the telecommunications layer in order to deliver the new technologies. Government, large businesses and large health care providers have recognized the value of these services and have moved to gain their benefit. The small and middle tiers of these markets are now beginning to see the justification for their use. The enabling piece is connectivity. The key to the connectivity is performance and reliability. To be successful AFN needs to ensure the network is Printed: October 29, 2014 Page 15 of 44 Revised: October 29, 2014 positioned to meet these requirements. AFN's cost structure must be addressed in order for AFN to continue to enhance the performance of the network. In addition, AFN should increase reliability by investing in fiber based last mile technologies. The Telecommunications industry is highly competitive. The Ashland market is dominated by Charter Communications, a national Multi-System Operator (MSO). Charter has a better cost structure due to buying power and bankruptcy reorganization in 2009. Charter is anticipated to swap the Ashland market with Comcast. Comcast is also a national MSO. Comcast also benefits from its buying power. Comcast is consistently ranked below average on customer satisfaction and actively works to abolish net neutrality. Both these positions provide a good contrast to the AFN customer care reputation. AFN services the Ashland telecommunications market. The Ashland Telecommunications Market value is estimated to be 6.5 million dollars. The following chart presents the relative position of AFN in the market in total and for each of the identified market segments. AFN numbers include services provided to ISPs. Figure 1 - AFN Market Share vs. Market Sizexiii AFN Market Share vs. Market Size 7 6 c 0 = 5 4 3 ■AFN Share 2 ■ Market Size 1 0 Residential Corn/Indus Gov/Educ Health Collo Total FmAFN Share 1,172,513 305,325 179,712 172,800 6,000 1,836,350 1 ■ Market Size 3,908,376 2,035,500 187,200 216,000 150,000 6,497,076 Data: 06/30/2014 Printed: October 29, 2014 Page 16 of 44 Revised: October 29, 2014 The relative market share for the market participants is presented in the pie chart below. AFN has approximately twenty-eight percent of the Ashland telecommunications market. AFN numbers include services provided to ISPs. Figure 2 - Market Share of Market Participants (Revenue Market Share . AFN k ■ Charter *fW ■ CenturyLink ■ Other - Rgnal ■ Other - Sttwid Data: 06/30/2014 The share of each market served by the active market participants is presented in the chart below. AFN numbers include services provided to ISPs. Competitive Position in Market 7 in; 6 = 5 0 4 ■ Residential 3 2 ■ Com/Indus 1 Gov/Educ 0 A 1=1 . 1. ■ Health Oca hw~ C0110 Le~~ ~r~~, rep, p O~ Data: 06/30/2014 Printed: October 29, 2014 Page 17 of 44 Revised: October 29, 2014 Demand The chart below illustrates the utilization of various internet access technologies for the past five years. The demand for both wired and wireless internet connectivity continues to grow. The City of Ashland's utilization is expected to follow national trends. Significantly, AFN provides two of the three fast growing connection technologies (cable modem, fiber) and has the potential for a leadership position in fiber. Table 1- Trends in Connectivityxiv At Least 3Mbps Downstream and 768Mbps Upstream by Technology (thousands) 2009 2010 2011 2012 2013 Technology Jun Jun Jun Jun Jun aDSL 5,614 6,275 8,909 12,875 16,029 sDSL 9 13 16 30 34 Other Wireline 129 177 204 239 289 Cable Modem 23,958 30,616 34,113 37,798 46,014 Fiber 3,333 4,192 5,188 6,001 6,989 Satellite - - 1 87 791 Fixed Wireless 64 92 145 214 337 Mobile Wireless 224 4,188 16,242 43,025 93,247 Total 33,331 45,553 64,818 100,269 163,730 Table2 - Bandwidth Growth (Fiscal Year End) Year Bandwidth (Mbps) AFN's demand for internet services continues to grow. The chart at 2006 100 left shows the bandwidth growth over successive four year periods. 2010 300 Demand is expected to grow three fold over the next four years. 2014 1500 2018 4500 Trends The Telecommunications Industry continues to change. The emergence of fast, reliable cellular services has led to the decline of the triple play with cellular supplanting home based VoIP'v. The emergence of new technologies, IPTV/OOT coupled with smart TVs (and standalone devices) is pressuring traditional video (broadcast and cable) providers. The "internet of everything" is demanding high performance and high reliability for consumers. The telecommunication industry is moving quickly to IP based services. IP services continue to grow, broadband subscriptions grew one percent" in 2013, and traditional cable customers shrank by two percent x`'". In the same timeframe, for the first time ever, total broadband subscriptions outnumbered total cable subscriptions. The direction for technologies, customers and telecommunications is to IP (internet) based services. Printed: October 29, 2014 Page 18 of 44 Revised: October 29, 2014 AFN has the potential for growth in the commercial/industrial, health care market segments and slow growth in the residential market segment. The commercial/industrial and health care market segments will require the introduction of an affordable fiber solution. The addition of a lower cost fiber based service allows these customers to move up to a faster, better performing and more reliable product set. Barriers to Entry The high capital cost to construct a fiber and coaxial plant makes AFN's investment in telecommunications infrastructure (twenty five miles of fiber, one hundred nineteen miles of coaxial cable) a significant barrier of entry for any new competitors. The existing competitor is believed to have less fiber and an equivalent amount of coaxial cable in the area, though the exact amount is not known. External Factors Technology: Cloud technology is shaping demand for fast and reliable internet connectivity. The rapid adoption of Cloud (and Software/Platform/Infrastructure/ "as a service") model of Information Technology provides opportunities. The growing push to replace coaxial with fiber represents a significant risk if AFN does not begin to similar evolution. While coaxial and wireless (esp. cellular) continue to move forward in capabilities, fiber continues to provide the most robust, future proof technology. The commercialization of Passive Optical Networking (PON) makes it possible to serve small commercial/industrial/medical customers economically with fiber services. An example of the growth in this technology is Google Fiber. Regulation: While not actively being pursued in Oregon, MSOs have pursued legislation in other states to prohibit or curtail municipal telecommunication networks. If Oregon were to pass such legislation, AFNs future prospects could be reduced or extinguished. Economy: Economic swings affect expansion of services, but have little effect on the contraction of services. During times of economic distress residential customers look to internet connectivity for entertainment while commercial, industrial and healthcare look for additional efficiencies through internet use. During growth periods demand for internet grows, during economic downturns the demand for internet access does not significantly shrink. Industry: The industry continues to experience consolidation (Comcast/Time Warner). The benefits of scale provide significant leverage for cost reductions (internet, programming, operations). AFN does not enjoy the same scale of cost savings. Printed: October 29, 2014 Page 19 of 44 Revised: October 29, 2014 Products""' Internet Based Products Internet provides global access to the World Wide Web and serves as a communication mechanism for applications (i.e. Cloud Services, email, messaging, VoIP, video, social/peer networking). Uses for internet continue to expand as more applications and services are created and connected to this versatile communications path. Some of the benefits realized by our customers are: • Anytime communication with family, friends, and the world. Access to educational/medical/governmental resources which promote learning, health and an informed citizenry. • Access to information technologies which can facilitate the communication of critical information (medical, security), increase productivity, and reduce costs. The internet can provide access to affordable business tools and applications for small as well as large entities without the concern for physical location. Ethernet Based Products Ethernet provides a point to point communication path for transmitting data. Ethernet is used predominately by commercial/industrial, health care, government/education and ISP/CLECS to communicate data and information within a single entity or when an entity needs to physically isolate/secure their communications. Ethernet can be used (and often is) as an underlying transport mechanism for internet traffic. Customers AFN serves a wide spectrum of customers. The customers are associated with their market segment: Residential: The residential market segment consists of households and small home offices located within Ashland. Customers exhibit a high degree of price sensitivity and demonstrate a preference for buying local. The customers value ease of purchase, setup, maintenance and termination (customer service). Internet and TV (via partner) are the services currently purchased. Commercial/Industrial: This market segment consists of commercial home based enterprises, small to large stores, trades, entertainment, hospitality, manufacturers, and other non-medical business enterprises. Customers exhibit some price sensitivity and require predictable performance with high reliability. Customers expect good customer service - ease of doing business from purchase through billing and maintenance. The availability of new information technologies (Cloud Services) is moving these enterprises into a new dependence on internet and Ethernet services. Applications. enabled by telecommunication services can lower costs, provide competitive advantage/parity, and allow the enterprise to address a larger marketplace. Government/Educational: The government/educational market segment consists of local, regional, statewide and federal government, their districts, agencies and stations. The customers are price sensitive and require predictable and reliable service levels. The customers require patience and Printed: October 29, 2014 Page 20 of 44 Revised: October 29, 2014 perseverance when doing business (working within their unique procurement process). These customers often purchase Ethernet, internet and collocation. The customers have a resistance to changing providers and purchases may grow organically. Health Care: The health care market segment is composed of hospitals, emergency care clinics, medical offices, residential medical facilities, alternative care facilities and satellite medical business processing locations. The customers are less price sensitive with the requirement for high reliability and security. Customer service (especially support and maintenance) is of extreme importance due to the critical nature of the information being handled. This segment requires patience and development before any purchases will be made. These customers often purchase Ethernet, internet and collocation. The customers have a high resistance to changing providers and once engaged, purchases may expand quickly. Internet Service Provider (ISP): This is the largest customer group for AFN. ISPs serve as both a value added reseller (TV) and privately branded distribution channel. ISP's customers are primarily residential but they also serve commercial/industrial, and health care market segments. While the largest ISP does not, this customer group can and does sell competing services from Charter and CenturyLink. Printed: October 29, 2014 Page 21 of 44 Revised: October 29, 2014 Competition AFN's two main competitors are: Charter Communications, Inc. CentraWacific 400 Atlantic St 10th Floor Stamford, CT Northeast Central/Pacific Regional Office: St. Louis, MO Local Offices Charter Medford Store Medford, OR Southwest ~a~eo South Third Party Service Locations: °k Thirteen in Medford/Ashland area CenturyLink (S&P 500) 100 CenturyLink Drive' Monroe, LA < F.' Northwest Regional Office: I+i Y, Seattle, WA Oregon Market (Outside Portland) Bend, OR c, J.D. Power 2013 U.S. Residential Internet Service Provider Charter is a large national MSO and CenturyLink Satisfaction Stude is a large national Incumbent Local Exchange C.9- S"ftf~tto, Ind.a Ranking W paxa..a,,amFar.~ Carrier (ILEC). Both companies can provide tilReQlRn JDF. m Ethernet and internet services. Their technologies serving Ashland can limit the availability and performance of their products. Charter provides AT&T cable modem and limited fiber delivery, C-,~ CenturyLink provides xDSL via copper twisted w«! R." A-V o. pair. Neither Charter nor CenturyLink have a fiber plant capable of matching AFN for reach, performance or reliability. > _ ] Charter has demonstrated a readiness to aggressively compete with AFN. Charter reconstructed their plant and has consistently W171-I!, worked to introduce products and features ahead of AFN. Charter is expected to turn the Ashland° qe CU.Wer MVe BA A.ner Mfi L'S AesNlv.OtRRnsCYrte RaEKSffitimta-+.aa0+zsne area over to Comcast if the projected merger Poulr6Y2ie fefVgs'a22rAM2m+irnsumn'i.!G'1A.R. Pone-males. £w.eme)RVn+2r.:.m Power straoJ.G.A .rsteY.~-.a..M[rir [vis Mry+2bi mnmpK.:.R dbm•. between Comcast and Time Warner gains Printed: October 29, 2014 Page 22 of 44 Revised: October 29, 2014 regulatory approval. While Comcast has not shown a disposition to put fiber infrastructure into communities the size of Ashland, if Comcast does build fiber infrastructure in Ashland, Comcast would be a formidable competitor. Competitive Analysis Table 3 - Competitive Analysis - AFN Internal Analysis of Strengths and Weaknesses, Competitive Comparison Factor AFN Strength Weakness Charter Centuryl-ink Importance' Products Good Good Poor 1 Performance Average Average Average 1-2 Reliability Average Average Average 1-2 Quality Good Good Good 1-2 Price Moderate Low High 2-4 Service Good Poor Poor 1-4 Selection Good Average Poor 1-2 Stability Average Good Good 1-2 Expertise Average Average Average 1 Reputation Below Average Poor Below Average 1-3 Location Poor Non-Existent Non-existent 4 Sales method Poor Good Poor 1-4 Advertising Poor Average Average 2-5 Image Average Below Averag Unknown 2 Charter is the active competitor in Ashland. Charter is often first to market and has consistently demonstrated aggressive promotion and pricing. The pending territory swap presents a window of opportunity while Charter pauses for merger activity and Comcast focuses on operational integration. 1 1= critical; 5 =not very important Printed: October 29, 2014 Page 23 of 44 Revised: October 29, 2014 AFN will continue to improve the performance and reliability of the services and work the performance, reliability and price attributes into strengths. The combination of competitor distraction, products, performance, reliability, and customer service present an opportunity to gain market share. Niche AFN provides telecommunication connectivity to residents and businesses of Ashland. Connectivity is provided via the delivery of Ethernet and internet services. The services are provided via cable, fiber and wireless technologies. Marketing Strategy AFN provides services for customer telecommunication connectivity. AFN competes with the incumbent national service provider using similar technologies; however, AFN's services are targeted at the need of the local market segments. Differentiation is accomplished through service unique attributes, customer service, performance, reliability, and a "support local" preference within the community. AFN will market to the incumbent provider customer base to gain market share. AFN will focus on the commercial/industrial and health care segments. The new fiber based services will be trialed in the current AFN customer base and then offered to the ISPs and marketed to the incumbent's customer base. AFN will continue to use direct and wholesale channel distribution (ISPs) to sell to and support the customer base. For AFN direct customers, AFN provides all customer facing activities and maintains the delivery of services to the end customer. For ISP customers, the ISP provides all customer facing activities and AFN maintains the delivery of services to the end customer. Promotion: AFN will use direct marketing, mail and email lists to contact and market to the incumbent's customer base. Participation at local events will be trialed for effectiveness. Depending on size and projected service usage, businesses may be contacted directly. While pricing is not generally used for promotion, pricing may be used to overcome customer resistance to switching (switching costs). AFN will explore ways to participate with ISPs in promotions. Advertising: To this point advertising has been limited and brand oriented. Regular advertising will be tracked and audited to determine where and how often service advertisements will be used. The effectiveness will be monitored. Promotional Budget: AFN's current promotional budget is twenty-six thousand dollars. The majority of the budget goes to image advertising. The budget will be increased to support service oriented sales initiatives (gaining market share from incumbent). Printed: October 29, 2014 Page 24 of 44 Revised: October 29, 2014 Pricing: Pricing for the largest segment (AFN direct and ISP residential customers) is set by the competitive environment. The price elasticity is high (higher price lower demand). Service performance, reliability, and customer care can be effective in customer retention. Pricing for other market segments is value based. Distribution (Placement) AFN utilizes two sales channels to reach customers: Retail sales (aka AFN Direct): AFN is the owner of the customer and responsible for all facets of the sales, installation, support, and administrative (i.e. billing) functions. AFN retail also promotes the other distribution channel (ISPs), and allows the customer to choose with whom they wish to do business. AFN must become the company that is known by its solutions and ease of doing business. AFN will clear impediments and provide a distribution system where the customer can make AFN the easy choice for the services they need. AFN must be easier to do business with than the competition. AFN should reinstitute a point of sale at the initial point of contact in City Hall. AFN should work to understand and eliminate the logistical and procedural barriers in order to make AFN a welcomed conversation in customer interaction. In order to provide for additional customer convenience, the web based self-registration should be reinstated. Internet Service Providers (ISP): The ISPs are independent third parties who have agreements for the purchase and resale of AFN services. AFN contracts with five ISPs. AFN provides delivery and services to the ISP at a discounted rate. The ISP is responsible for acquiring, supporting and billing the customer. Two of the ISPs are located in Ashland. One of the ISPs has a store front in Ashland. Three of the ISPs provide customer support with in-house staff, two of the ISPs use a third party customer support service. Three of the ISPs sell competitor's products. AFN serves a broad spectrum of customers. Internet Service Providers (ISP) are the largest customer group. ISPs act as a distribution channel for the resale to the residential, commercial/industrial, and health care market segments. AFN also addresses these market segments. Both AFN and ISPs need to focus their efforts on success against the competition. The ISP group provides value added services (TV, phone) and many sell competing internet and Ethernet products from Charter and CenturyLink. Printed: October 29, 2014 Page 25 of 44 Revised: October 29, 2014 The chart below shows the customer counts and five year change for each of the ISPs and AFN. Table 4 - Customer Counts by ISP -Customer Counts - Five Year History July 1, 2010 July 1, 2011 July 1, 2012 July 1, 2013 July 1, 2014 5 Yr Delta# Ashland Home Network 2,159 2,938 2,768 2,596 2,514 (424) AFN 107 176 316 453 520 413 Jeffnet 723 643 584 515 459 (264) Computer Country 252 254 249 212 208 (44) Infostructure 957 220 204 186 182 (38) Hunter 2 4 3 6 9 7 4,200 4,235 4,124 3,968 3,892 (350) Notes: . Ashland Home Network acquired approx. seven hundred Infostructure customers #Ashland Home Network and Infrostructure are 4 year delta The AFN direct sales have proven effective in making significant gains (up three-hundred eighty-six percent in five years). The ISP channel has been challenged. With the exception of Hunter the ISPs have lost seven- hundred seventy customers during the five year period. The causes are likely: a) competition for cable TV (channel selection and features), b) services (performance) late to market, and c) limited marketing efforts and the representation of alternative services. AFN's direct efforts have proven effective; this channel should be allowed to freely compete against the larger incumbent. The message delivered to potential customers must be clear and unambiguous. AFN is the Ethernet and internet alternative to the competition. Where there is a mutual advantage for AFN to support the ISPs efforts, AFN and the ISP will leverage our relationship. However, AFN can no longer stand in the background but rather must openly and actively drive to gain market share against the larger incumbent. Printed: October 29, 2014 Page 26 of 44 Revised: October 29, 2014 Sates Forecast Fiber Service to the Premise (new) Fiber to the premise (FTTx) is a natural and anticipated extension of the AFN network. The AFN network has a core fiber network (twenty-five miles) serving the City. Historically only the customers with the budgets to construct and pay for dedicated fiber connections have been able to take direct advantage of AFN's fiber network. New (to Ashland) technology now makes fiber affordable to the small/medium business/enterprise. The project brings fiber from the ring to the customer premise. The initial area targeted for installation is a commercial area currently being served by AFN. Existing customers have expressed a need for the features fiber can provide - high performance and high reliability. The underlying technology for this proposal is Passive Optical Networking (PON). AFN has a real opportunity. The need and demand are there. The technology and supporting technologies are there. Additionally, a confluence of factors may distract the competition and provide AFN the opportunity to develop unmatched services and capture market share. Delaying the project will likely close the opportunity vis-a-vis the competition. This project is contingent upon meeting key assumptions. Without meeting or mitigating these assumptions the project should not go forward. The assumptions are outlined in the following tables. Printed: October 29, 2014 Page 27 of 44 Revised: October 29, 2014 Revenue Outcomes are dependent upon the assumptions noted below and in following forecast Revenue and Expenses Tables. The assumptions for Revenue/Sales are: • The new service revenues begin in FY2017 (September 2016) • Revenues ramp up slowly over an eighteen month period to reach a maximum of sixty-five connections. It is reasonable to expect the number of connections to keep growing, but for purposes of conservatism, the numbers are held to these levels. The first twelve months sales projections for the new fiber based services (Quantum 50 and 100) are shown in the table below. These numbers are conservative, minimum expected sales. Twelve Month Sales Forecast - Quantum Service 6/16 7/16 8/16 9/16 10/16 11/16 12/16 1/17 2/17 3/17 4/17 5/17 Total Quantum 50 1 6 9 11 13 18 25 28 33 144 Sale Price/unit 85 85 85 85 85 85 85 85 85 85 85 85 Quantum 50Total 85 510 765 935 1,105 1,530 2,125 2,380 2,805 12,240 Quantum 100 1 2 2 3 3 4 4 5 24 Price 110 110 110 110 110 110 110 110 110 110 110 110 Quantum 100 Tota I - - - 110 220 220 330 330 440 440 550 2,640 14,880 The above table indicates a go live launch date in September, 2016. Following the launch, sales ramp up slowly as AFN refines installation and support techniques. After the first six months, sales ramp up more quickly and by month eighteen level off at about sixty-five customers for the Quantum 50 service and continue to grow slowly for the Quantum 100 service for the remainder of the projection (please see the next table - Five Year Sales Forecast - Quantum Service). This forecast is based on specific cluster of AFN commercial customers who have expressed the real need for a fiber based product. Printed: October 29, 2014 Page 28 of 44 Revised: October 29, 2014 Five Year Sales Forecast - Quantum Service (realistic) FY2017 FY2018 FY2019 FY2020 FY2021 5Year TotaI Quantum 50 avg 12/mo avg 50/mo avg 62/mo avg 65/mo avg 65/mo Sale Price/unit 85 85 85 85 85 Qua ntu m 50 Tota 1 12,240 51,000 63,240 66,300 66,300 $ 259,080 Quantum 100 avg 2/mo avg 6/mo avg 8/mo avg 10/mo avg 12/mo Price 110 110 110 110 110 Quantum 100Total 2,640 7,920 10,560 13,200 15,840 $ 50,160 Total 14,880 58,920 73,800 79,500 82,140 309,240 The additional fiber based service is projected to add $309,520 to AFN's revenue over the five year period. As success and revenue allow, the service can be deployed into other commercial/industrial locations. Ultimately this service can provide fiber to the premise where ever revenue allows. The effect on AFN net Revenue projections is illustrated in the Revenue table below. Please note only FY2017 and FY2018 projections appear in the table below Resources FY2014 FY2015 FY2016 FY2017 FY2018 Total High-Speed (fiber based) 199,419 204,404 209,514 229,632 279,041 1,122,010 Internet Service 1,630,416 1,630,416 1,711,936 1,797,533 1,887,410 8,657,711 Cable 99,003 85,018 85,018 85,018 85,018 439,075 Funding (Internet, FTTx, Opx) - - 200,000 200,000 200,000 600,000 Total Revenue 1,928,837 1,919,838 2,206,469 2,312,183 2,451,469 10,818,796 Notes: Year FY2014 a ctu a I s YearFY2015 budget Years FY2016-2018 are projections Revenue from PON starting in FY2017 Internet Services annual growth rate 5% beginning FY2016 Funding (Internet, FTTx, Opx) tbd with City Administration and Administrative Services (Finance) departments The new revenue appears only in FY2017 and FY2018, remaing projected revenues (FY2019-FY2021) do not appear in this table Printed: October 29, 2014 Page 29 of 44 Revised: October 29, 2014 Requirements The effect of the Quantum services on AFN expense projections is illustrated in the table below. The assumptions for Expenses are: • Current budgeted capital investments are reduced in FY2016 -FY2018 to cushion the impact of the FY2016 internet ($250k) and the FY2017 PON ($250k) capital projects o FY2016 $190k down to $50k o FY2017 $126k down to $50k o FY2018 $105k down to $50k • Capital investment of $250k for internet capacity in FY2016 • Capital investment of $250k for PON technology in FY2017 Requirements FY2014 FY2015 FY2016 FY2017 FY2018 Total Personnel 648,083 651,600 677,700 704,800 733,000 3,415,183 Operating 881,960 930,402 958,314 987,063 1,016,675 4,774,414 Debt 409,000 409,000 409,000 409,000 409,000 2,045,000 Capital 103,235 115,000 300,000 300,000 50,000 868,235 Total Expenses 2,042,278 2,106,002 2,345,014 2,400,863 2,208,675 11,102,832 Notes: Yea r FY2014 a ctu a Is Year FY2015 budget Years FY2016-2018 are projections Original Budget Capital Investments reduced in FY16-18 Capital Investment in internet in FY2016 Capital Investmentin PON in FY2017 The difference between Resources and Requirements is presented below as cash flow. Cash Flow (113,441) (186,164) (138,545) (88,680) 242,794 (284,036) Project financial analysis: Payback Period 4.3 years Net Present Value (6% discount; timed from project launch) $19,096 The fiber based Quantum services (PON technology) are recommended and provide a positive return to both the community and AFN. The funding source for these projects will be identified in cooperation with City Administration and Administrative Services (Finance) departments. If funding requirements cannot be met or otherwise mitigated the project should not go forward. Printed: October 29, 2014 Page 30 of 44 Revised: October 29, 2014 Financial Performance and Forecast Performance AFN's financial performance remains below breakeven. The aggressive marketing by the competition, the delayed system upgrades to match competitive services, the lack of new products, and the declining performance in the distribution channels have led to a loss of customers and their associated revenue. While AFN works to bolster income in the traditional business (cable, internet) through more aggressive marketing (ISP and Retail), the outlook is to continue the trend through FY2016. In FY2017, with the help of capital projects and anticipated marketing efforts, the division begins to rise above breakeven. While a new family of services is described in the strategic plan, the financial requirements for implementation may make the project untenable. Moving forward, the continued lack of new products puts the division in a precarious competitive position five to six years in the future. The chart below shows the Historical financial performance for AFN. Figure 3 - Historical Financial Performance AFN Historical Performance 2,500 2,000 1,500 Total Revenues v 0 1,000 - Total Expenditures L Fund Ending Balance 500 Excess (500) 2010 2011 2012 2013 2014 Note: Excess = Revenue - Expenditures Printed: October 29, 2014 Page 31 of 44 Revised: October 29, 2014 The following chart illustrates the historical trends within the division's revenue by line of business. Figure 4 - Revenue by Line of Business AFN Revenue by Line of Business 2,500 2,000 1,500 CAN m 3 s° 1,000 High Speed Internet 500 Total 2009 2010 2011 2012 2013 2014 2015 bgt CAN 126,862 109,596 158,523 82,786 105,560 99,003 85,018 IMA High Speed 192,114 195,506 193,378 190,219 186,586 199,419 231,231 Internet 1,486,76 1,512,64 1,592,85 1,658,12 1,603,96 1,630,41 1,690,63 - s Total 1,805,74 1,817,74 1,944,75 1,931,12 1,896,10 1,928,83 2,006,88 Note: Change in CATV revenue in 2012 is a result of contract renegotiation in April, 2012 Printed: October 29, 2014 Page 32 of 44 Revised: October 29, 2014 Forecast The following two charts show the four year projections for net revenue and expenses for the division. It is important to note there are no new services in these projections. However, there is a two-hundred fifty thousand dollar investment to increase internet capacity in FY2016. The investment is required to meet projected demand for internet by new and current customers. The internet capacity is required to continue to provide internet as a service (eighty-five percent of revenue in FY2014). The internet project is designed to provide for the increasing bandwidth utilization by our customers and forestall unsustainable pricing from the current supply chain. The following table presents the Revenue projections through FY2018. These projections are based on an expected growth in both the High-Speed and Internet service. This growth is based on a change to more active marketing, and leveraging AFN's local customer support advantage. The funding source for the internet project will be identified in cooperation with City Administration and Administrative Services (Finance) departments. Resources FY2014 FY2015 FY2016 FY2017 FY2018 Total High-Speed (fiber based) 199,419 204,404 209,514 214,752 220,121 1,048,210 Internet Service 1,630,416 1,630,416 1,711,936 1,797,533 1,887,410 8,657,711 Cable 99,003 85,018 85,018 85,018 85,018 439,075 Funding (Internet, Opx) - - 150,000 150,000 150,000 450,000 Total Revenue 1,928,837 1,919,838 2,156,469 2,247,303 2,342,549 10,594,996 Notes: Year FY2014 a ctua I s Year FY2015 budget Years FY2016-2018 are projections NO Revenue from PON Internet Services annual growth rate S% beginning FY2016 Funding (Internet, Opx) tbd with City Administration and Administrative Services (Finance) departments Printed: October 29, 2014 Page 33 of 44 Revised: October 29, 2014 The assumptions for Expenses are: • Current Budgeted capital investments are reduced in FY2016 -FY2018 to cushion the impact of the FY2016 internet ($250k) capital project o FY2016 $190k down to $50k o FY2017 $126k down to $50k o FY2018 $105k down to $50k • Capital investment of $250k for internet capacity in FY2016 Requirements FY2014 FY2015 FY2016 FY2017 FY2018 Total Personnel 648,083 651,600 677,700 704,800 733,000 3,415,183 Operating 881,960 930,402 958,314 987,063 1,016,675 4,774,414 Debt 409,000 409,000 409,000 409,000 409,000 2,045,000 Capital 103,235 115,000 300,000 50,000 50,000 618,235 Total Expenses 2,042,278 2,106,002 2,345,014 2,150,863 2,208,675 10,852,832 Notes: Year FY2014 a ctu a Is Year FY2015 budget Years FY2016-2018 are projections Original Budget Capital Investments reduced in FY16-18 Capital Investment in internet in FY2016 NO Invesment in PON Cash Flow (113,441) (186,164) (188,545) 96,440 133,874 (257,836) Printed: October 29, 2014 Page 34 of 44 Revised: October 29, 2014 The following charts represent analysis of AFN's Expenditures. The first chart shows historical expenditures and the second chart presents the FY2014 actual expenditures. Figure 5 - AFN Expenditure Analysis, Historical AFN Expenditure Analysis 2,500 2,000 `h~ ,LL4 r Personnel ■CentraIServices 1,500 m Debt Contribution 1,000 ■ Internet t y ~ fir' rF 'a} Y " ■ Other Materials and Services 500 0 Capital Outlay 2010 2011 2012 2013 2014 Figure 6 - AFN Expenditure Analysis, 2014 AFN 2014 Expenditure Analysis 5% 11% 32% ■ Personnel ■ Central Services 11% 0 Debt Contribution ■ Internet ■ Other Materials and Services Capital Outlay 20% 21% The two charts above present where AFN uses its resources. In FY2014, Personnel, Central Services and Debt Contribution represent seventy-three percent of AFN's expenditures. Combined with the eleven percent required for Internet, eighty-four percent of expenditures are fixed. Printed: October 29, 2014 Page 35 of 44 Revised: October 29, 2014 Appendix A - AFN Services Analysis - Count and Revenue C n ~ Figure 7 -AFN Servi D Sovice Price ($)/Speed (Mb) N to cc Il 01 In A W N 1~ O O x`rT~ 2~s >>b TJ~ ~'T 2~T >>b ~j o1b l 04 bl, C ~ 3 e-F 90 ry0o < ~~y lD s,7 fD ~d6~Y Oo °dbo T d Z Ji fD J iTbg < 7\7 Printed: October 29, 2014 Page 36 of 44 Revised: October 29, 2014 Appendix B - AFN Channel Analysis - Services Distribution by ISP Figure 8 - Channel Analysis - S c m - to > C D C r ~ r Z N O r D f S'j _ V C 3 O D C S n o ~ r4 4 ~ x J.m ( r1 ~ I m O _ A Printed: October 29, 2014 Page 37 of 44 Revised: October 29, 2014 Appendix C-Current AFN Rates Structure The following chart is AFN's current flat wholesale rate structure, implemented in January 2011. AFN Fiber Network Products Community Access (No longer promoted) Email Activity Dial Up Alternative Up to 256 Kbps Download / 256 Kbps Upload $9 month Wholesale $9 month AFN Direct Retail Basic (No longer promoted) DSL Alternative for Moderate Internet Users Up to 1.5 Mbps Download/ 256 Kbps Upload $25 month Wholesale $30 month AFN Direct Retail Choice The Most Popular Internet service With 200 GB/month bandwidth usage Up to 5 Mbps Download/ 1 Mbps Upload $28 month Wholesale $35 month AFN Direct Retail Preferred General Media Applications With 250 GB/month bandwidth usage Up to 15 Mbps Download/ 3 Mbps Upload $38 month Wholesale $45 month AFN Direct Retail Preferred Plus For Web-based TV and Movie Viewing With 300 GB/month bandwidth usage Up to 15 Mbps Download/ 3 Mbps Upload $45 month Wholesale $55 month AFN Direct Retail Printed: October 29, 2014 Page 38 of 44 Revised: October 29, 2014 Appendix C-Current AFN Rates Structure (continued) Media Online Gaming and General Media Applications With 300 GB/month bandwidth usage Up to 20 Mbps Download/ 5 Mbps Upload $55 month Wholesale $65 month AFN Direct Retail Media Plus Premium Residential Services With 350 GB/month bandwidth usage Up to 20 Mbps Download/ 5 Mbps Upload $65 month Wholesale $75 month AFN Direct Retail Home Office For Home Office Applications Enabling Fast Two-Way File Transfers With 350 GB/month bandwidth usage Up to 10 Mbps Download/ 3 Mbps Upload $53 month Wholesale $65 month AFN Direct Retail Small Business With 500 GB/month bandwidth usage Up to 25 Mbps Download/ 5 Mbps Upload $73 month Wholesale $85 month AFN Direct Retail Small Business Enhanced With 500 GB/month bandwidth usage Up to 25 Mbps Download/ 10 Mbps Upload (Not Available Wholesale) $100 month AFN Direct Retail AFN MAX Home PROMO Implemented June 23, 2014 Charter Alternative With 500 GB/month bandwidth usage Up to 30 Mbps Download/ 5 Mbps Upload $45 month Wholesale $55 month AFN Direct Retail Printed: October 29, 2014 Page 39 of 44 Revised: October 29, 2014 Appendix D-Proposed AFN Rates Structure The following chart is AFN's proposed rate structure to be updated with partner input to implement in the near future. AFN Fiber Network Products Internet Essential Low Income Connectivity Assistance With 100 GB/month bandwidth usage Up to 5 Mbps Download / 1 Mbps Upload $9 month Wholesale $9 month AFN Direct Retail Choice Our Most Popular Internet service With 200 GB/month bandwidth usage Up to 7 Mbps Download / 1 Mbps Upload $29 month Wholesale $35 month AFN Direct Retail Preferred General Media Applications With 300 GB/month bandwidth usage Up to 15 Mbps Download/ 3 Mbps Upload $39 month Wholesale $45 month AFN Direct Retail Max Home Online Gaming and General Media Applications With 350 GB/month bandwidth usage Up to 30 Mbps Download/ 5 Mbps Upload $45 month Wholesale $55 month AFN Direct Retail Enterprise Home Office and Small Office Connectivity With 500 GB/month bandwidth usage Up to 50 Mbps Download/ 5 Mbps Upload $80 month Wholesale $85 month AFN Direct Retail Printed: October 29, 2014 Page 40 of 44 Revised: October 29, 2014 Tables and Figures Table 1 - Trends in Connectivity ..........................................................................................................................18 Table 2 - Bandwidth Growth (Fiscal Year End) ..............................................................................................18 Table 3 - Competitive Analysis - AFN Internal Analysis of Strengths and Weaknesses, Competitive Comparison .....................................................................................................................23 Table 4 - Customer Counts by ISP .......................................................................................................................26 Figure 1 - AFN Market Share vs. Market Size ..................................................................................................16 Figure 2 - Market Share of Market Participants (Revenue ...................................................................17 Figure 3 - Historical Financial Performance ....................................................................................................31 Figure 4 - Revenue by Line of Business .............................................................................................................32 Figure 5 - AFN Expenditure Analysis, Historical ............................................................................................35 Figure 6 - AFN Expenditure Analysis, 2014 .....................................................................................................35 Figure 7 - AFN Services Analysis - Count and Revenue ......................................................................36 Figure 8 - Channel Analysis - Services Distribution by ISP ........................................................................37 Printed: October 29, 2014 Page 41 of 44 Revised: October 29, 2014 Endnotes Distribution Channel - distribution channel (aka marketing channel) provides for the delivery of products and services to the end-user or consumer either directly (direct channel) or through intermediaries. Point-of-Presence - location where telecommunication providers offer a connection point to their network and services. The major regional Points-of-Presence are located in: Portland, Seattle, and San Francisco. i "last mile" - denotes the final connectivity leg between the telecommunications provider and the final customer or consumer. iv Cloud Based Service - generally described as one of the following services. Software as a Service (SaaS). The capability provided to the consumer is to use the provider's applications running on a cloud infrastructure. The applications are accessible from various client devices through either a thin client interface, such as a web browser (e.g., web-based email), or a program interface. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. Platform as a Service (PaaS). The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages, libraries, services, and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly configuration settings for the application-hosting environment. Infrastructure as a Service (1aaS). The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, and deployed applications; and possibly limited control of select networking components (e.g., host firewalls). v IPTV/OTT: Internet Protocol TV (IPTV), Transport and delivery of TV programming via a privately controlled internet protocol network Over the Top (OTT), Transport and delivery of TV programming via the public internet protocol network vi ICT - Information and Communication Technologies, the integration of both computing and communications technologies into consumer goods, "The Internet of everything" vii History -edited and updated from Ashland Fiber Network Strategic Business Plan, page 10, August 2010 Viii FTTx: Fiber To The x - refers to all possible optical fiber topologies from a telecom or cable carrier to its customers, based on the location of the fiber's termination point FTTH and FTTP (home and premises) the fiber ends inside the home or building FTTC and FTTN (curb and neighborhood) the fiber ends outside the home or building ix Press Release, J.D. Power Reports: Customer Satisfaction is High among Internet Customers Who Upgrade to Premium Speed Offerings To Boost Performance, J.D. Power, McGraw Hill Financial, 26 September 2013 X VLAN: Group of devices on one or more networks that are configured to communicate as if they were attached to the same wire, when in fact they are located on a number of different network segments Printed: October 29, 2014 Page 42 of 44 Revised: October 29, 2014 Xj SOHO - Small Office Home Office, small or home office environment and the business culture that surrounds it Kai Telecommunications Industry Market Research, Introduction to the Telecommunications Industry, Plunkett Research Limited, Available from: <http://www.plunkettresearch.com/telecommunications-market- researchAndustry-and-business-data>. [9 September 2014] X"' Federal Communications Commission, Industry Analysis and Technology Division Wireline Competition Bureau, Internet Access Services: Status as ofJune 30, 2013, Available from: <https•//apps fcc gov/edocs public/attachmatch /DOC-327829A1.Ddf>, [16 July 2014] US Census Bureau, 2008-2012 American Community Survey 5-Year Estimates, Data Set: Selected Economic Characteristics, Ashland, Oregon Ashland Chamber of Commerce, Business License Database, June 2014 Report: Marketing Segment by Product Group, July 2014 X'° Federal Communications Commission, Statistical Reports, Internet Access Services, 6/14 Release, Local Telephone Competition and Broadband Deployment, pg. 25, Table 7, Available from: httj2s:/jaVI2s.fcc.gov/edocs 12ublic/attachmatch/DOC-327829Al.pdf . [14 July 2014] - VolP - Voice over Internet Protocol, delivery of voice communications and multimedia sessions over Internet Protocol (IP) networks M'i Wired Business, The Internet is Officially More Popular Than Cable in the U.S., Available from: < bttp://www.wired.com/2014/08/the-internet-is-now-officially-more-popular-than-cable-in-the-u-s/>, [12 September 20141 X"'i Bloomberg News, TV Subscriptions Fall far First Time as Viewers Cut the Cord, Bloomberg, Available from: < http://www.bloomberg.com/news/2014-03-19/us-nay-tv-subscriptions-fall-for-first-time-as streaming-_ gains.html>, [15 September 2014] Printed: October 29, 2014 Page 43 of 44 Revised: October 29, 2014 xviii Products: Internet - Internet is a communications protocol used to ensure quick addressing/routing and error free delivery of information from source to final destination (especially across multiple networks). Ethernet - Ethernet is a more tightly focused communications protocol used to connect and identify unique physical devices within a single network. Though predating the International Standards Organization's Open Systems Interconnection (OSI) standard model for communication among devices, Internet and Ethernet do support different layers of the OSI model (see table below). (Ethernet - Layer 2; Internet - Layers 3 and 4) OSI Model Examples Application Layer Fara tats etwomr iation between Web Application software applbakne go Outc* E Data 6 Data Presentation , ow= bn tmP 5 Session Layer 80 ln1KhWco mwkabm Q Transport Layer Transmission Control Segments End bend .-actb and nKeblily Protocol (TCP) Packets 3 Pt+nNdoWr~~ard~bpcal Internet Protocol 0P) .M.461nq Frames 2 Data Link Layer beer ed lLC •.PMak.t .d6«dnu Bits 1 Physloel Layer CATS Printed: October 29, 2014 Page 44 of 44 Revised: October 29, 2014