HomeMy WebLinkAbout2014-1202 Council Mtg MIN
Regular City Council Meeting
December 2, 2014
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MINUTES FOR THE REGULAR MEETING
ASHLAND CITY COUNCIL
December 2, 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.
Councilor Rosenthal/Lemhouse m/s to add the contract with Key Manufacturing and Rentals
regarding the ice rink structure to the Consent Agenda. Voice Vote: all AYES. Motion passed.
MAYOR'S ANNOUNCEMENTS
Mayor Stromberg announced vacancies on the Public Arts, Transportation, and Tree Commissions.
APPROVAL OF MINUTES
The minutes of the Business Meeting of November 18, 2014 were approved as presented.
SPECIAL PRESENTATIONS & AWARDS None
PUBLIC FORUM
Jonathan Chenjeri/1301 Iowa Street/Explained SOREDI, Southern Oregon Regional Economical
Development Inc., was the initiative of Southern Oregon government, public and private holdings to help
business prosper to advance economic opportunities compatible with community values with innovative
business. He noted services cooperative firms provided and how SOREDI helped local economies thrive.
Colin Swales/95 Coolidge Street/Commented on a new medical marijuana dispensary close to his home.
He was surprised the City did not allow dispensaries in the downtown area. Instead they were pushed out
to the residential zones. He questioned what would happen to medical marijuana dispensaries when
marijuana was legalized. The code did not address marijuana retail stores.
David French/864 Cypress Point Loop/Addressed a traffic safety issue regarding a pick-up truck with
advertisement panels for the Historic Armory parked on Pioneer Street next to the Umqua Bank. It
blocked visibility for motorists pulling out of the bank parking lot. He submitted photos into the record.
Leigh Madsen/176 Orange Avenue/Invited everyone to an art show developed by Kay Hagen
specifically designed around the guests at the Ashland Community Resource Center. Her artwork would
be on display and for sale December 13, 2014 from 3:00 p.m. to 7:00 p.m. at the Center.
CONSENT AGENDA
1. Approval of commission, committee, and board minutes
2. Liquor License application for Kathryn Maloof dba Agave
3. FEMA Assistance to Firefighters Grant Requests
4. A resolution titled, "A resolution declaring the Canvass of the Vote of the Election Held in and
for the City of Ashland, Oregon on November 2,2014" and Mayoral proclamation
5. Special Procurement for Key Manufacturing, Ice Rink Tent install and removal
Councilor Voisin pulled Consent Agenda item #5 for further discussion. Parks and Recreation
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December 2, 2014
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Superintendent Rachel Dials explained the appeal period would expire December 8, 2014 and the Parks
and Recreation Department planned to set the tent up December 9, 2014. Parks and Recreation Director
Michael Black and staff worked with neighbors and created a plan to mitigate concerns regarding glare
from the tent. The ice rink would be closed starting December 3, 2014 and reopen December 17, 2014
before the December 20, 2014 celebration.
Councilor Voisin/Morris m/s to approve Consent Agenda items. Voice Vote: YES. Motion passed.
PUBLIC HEARINGS
1. Public Hearing and first reading by title only of an ordinance titled, “An ordinance of the City
of Ashland repealing Ordinance No. 2052 and replacing in its entirety existing Title 18 Land
Use of the Ashland Municipal Code with a restated and revised Unified Land Use Ordinance”
Planning Manager Maria Harris provided background on the Unified Land Use Ordinance (ULUO) and
summarized changes incorporated into the proposed ordinance. Ms. Harris clarified the change in multi-
family definition would not affect single-family homes with an accessory unit because it presently was
subject to site review.
Public Hearing Open: 7:29 p.m.
Colin Swales/95 Coolidge Street/
He noted that he had spoke at the last public hearing and another
meeting where Mark Knox represented his now private clients to make sure their wish list of amendments
to the code were included. He spoke against the building height. Lithia Way was becoming a luxury
condominium canyon instead of a commercial zone as originally intended. The 55-foot height proposal
plus the other five feet would make a huge difference to the look and feel of a small town. Something not
mentioned at all during the Planning Commission meetings or to the Council, was that a building plat was
measured as an average of the total lot. In the new proposal the 55-feet on the down slope side would be
more like 75-feet. He wanted to make Council aware of the real consequences of building up. The other
thing he did not like was public plaza space being eliminated for an extra story on top.
Mr. Swales took issue with time allotted to speak. He went on to respond to a question regarding how the
55-foot height requirement could be taller.
Public Hearing Closed: 7:35 p.m.
to approve First Reading of an ordinance titled, “An ordinance of
Councilor Slattery/Marsh m/s
the City of Ashland repealing Ordinance No. 2052 and replacing in its entirety existing Title 18
Land Use of the Ashland Municipal Code with a restated and revised unified land use
ordinance” and move the ordinance to second reading.
DISCUSSION:
Councilor Marsh noted the
amount of work that went into the ordinance and thanked everyone involved. Councilor Voisin would not
support the motion and felt strongly about increasing the building height in a commercial zone when the
City did not have the appropriate fire equipment. Councilor Rosenthal shared the same concern regarding
building height and lack of existing safety equipment. The City needed to address infill strategy going
forward along with public safety and develop ways to obtain the necessary equipment. Councilor
Lemhouse explained the building height issue was a result of the aggressive infill strategy the City had in
place. He did not think the lack of a ladder truck was reason enough to fail the ordinance. If that were an
issue, worldwide cities would not have high-rise buildings. There were strategies fire safety officials
could implement to keep people safe. The new ordinance was an improvement over the current one.
Councilor Morris thought a modern building at 55-feet was safer than an older building at 30-feet. The
ordinance was a compromise of many things but better than what was currently in place and would
function well. Councilor Voisin commented she had heard Council say how much they cherished the
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small town feel of Ashland. Increasing the height of the commercial area would change the entire look of
the downtown radically and was another reason she would opposed the ordinance.
Roll Call Vote: Councilor Marsh, Lemhouse, Slattery, Morris, and Rosenthal, YES; Councilor
Voisin, NO. Motion passed 5-1.
UNFINISHED BUSINESS
None
NEW AND MISCELLANEOUS BUSINESS
1. Talent Ashland Phoenix Emergency Pipeline Intertie project update and approval of Medford
Water Commission wholesale agreement
Public Works Director Mike Faught explained staff had taken a project that typically took two years and
accomplished it in five months. He introduced and thanked key staff Morgan Wayman, Steve Walker,
Scott Fleury, Dave Lohman, Dave Kanner, Mike Morrison, and contract Design Engineer Jeff Ballard
from RH2. He thanked Oregon Department of Transportation (ODOT), and Jackson County for
expediting the permit process. Mr. Ballard presented the Mayor and Council with plaques in honor of the
project. Councilor Voisin thanked Senior Engineer Pieter Smeenk for acquiring the $2.9 million loan that
enabled the City to afford the project. Mr. Faught thanked Chris Peters, a consultant who helped Mr.
Smeenk work on the loan.
In order to meet the September deadline, the City built a temporary pump station on a right of way and
was presently negotiating the property purchase. Of the $559,120 spent to construct the temporary
facility, $115,876 could not be re-used at the new site. Associated costs for professional services on final
construction totaled approximately $151,600 leaving a balance of $478,973 to complete the permanent
pump station.
Mr. Faught reviewed the options RH2 researched for future expansion from 2.13 million gallons of water
per day (mgd) to 3 mgd. He also contacted Ray Bartlett from Economic and Financial Analysis who
reported revenue short falls but did not think it would necessitate a rate increase.
The City had 18 months to move the temporary pump station 150 feet to another lot. Mr. Ballard
addressed Option 2 and explained two pumps provided redundancy at a smaller amount to generate 2.13
mgd. The second pump was smaller than the rented one. There was a possibility to align the pumps
differently to function depending on the flow rates required.
Mr. Faught clarified it was not cost effective to build a shell at this time because of the unknown of what
was needed 5-10 years from now. Mr. Ballard further clarified they were building half of a shell,
completing the remainder of the shell was not recommended considering the amount of mechanical and
electrical required for the space. It would also cost the same as funding a full pump station.
Mr. Faught went to explain the City had the foresight to raise rates in anticipation of the TAP project and
created the surplus money to pay the debt in the future. They were not sure what that would look like ten
years from now but at this time, there was no reason to raise rates. Staff also pushed a couple projects out
on the 20-year plan to fund the TAP project.
Mr. Ballard added because of the differences in pumps, controls, and mechanical and electrical
connections, they would replace everything in order to pump 3 mgd from the permanent pump station. It
would also require some remodeling. Only a small portion of the temporary system would be re-used in
the permanent system. The pump was chosen because of the emergency and what was available at the
time and was not the long-term solution.
Mr. Bartlett included loss of water sales in the financial report. Due to conservation the City lost
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approximately $200,000 in projected revenue, Mr. Bartlett factored that loss into the analysis and built it
into the financial plan.
Councilor Rosenthal/Voisin m/s to approve Option 1 TAP Pump Station project to include the
acquisition of a new pump. DISCUSSION: Councilor Rosenthal explained TAP was an emergency
arrangement and the City would never have to use water from the Medford water supply while Option 2
mortgaged several projects. Councilor Voisin could support Option 1, but was very disappointed they
had to move the pump station because of the emergency. She supported Option 1 using the existing pump
equipment. Councilor Morris liked Option 2 and thought eventually the City would end up paying the
money to get to Option 2. Councilor Lemhouse agreed with Councilor Morris. He would rather spend
money on a redundant system while there was momentum and cost less than it would in a decade.
Councilor Slattery supported Option 2 as well.
Councilor Marsh disliked both options. The City made it through the crisis without using Medford water.
Option 1 provided the capacity for 2.13 mgd and there was not a budget for infrastructure costs to go to 3
mgd. Councilor Rosenthal questioned if there was enough time to research other options. Mr. Faught
responded there was possibly two weeks. It would take 18-months to get everything accomplished
including construction. Senior Engineer and Project Manager Morgan Wayman added the permit process
and contract biding would take time. Waiting two weeks was reasonable. Mr. Ballard commented they
initially started with more options but from a technical perspective and engineering mindset, these were
the two best options. Mr. Faught preferred Option 2 because it prepared the City for all contingencies.
Councilor Lemhouse noted both options were legitimate and preferred over preparedness to being under
prepared. Councilor Voisin explained the City could have redundancy built on redundancy and still not
have water if the area experienced a serious drought. Councilor Lemhouse raised a point of clarification
and asked staff to explain the difference between the Ashland and Medford watershed. Mr. Faught
explained Ashland had an 800-acre watershed with no reserve and a different weather pattern while the
Lost Creek watershed had reserve levels specifically saved for drought years. Medford had the better
system to extend water during drought than Ashland did. Councilor Voisin commented water from
Medford would be extremely expensive and did not want to spend the money at this time. She suggested
waiting to see the effects of climate change and make a decision then. Mr. Faught confirmed Option 1
would meet the 2 mgd requirement for emergencies. However, it was not designed to run for extended
periods. Roll Call Vote: Councilor Rosenthal and Voisin, YES; Councilor Marsh, Lemhouse,
Morris, and Slattery, NO. Motion failed 4-2.
Councilor Morris/Slattery m/s to approve the Option 2 TAP pump station project.
DISCUSSION: Councilor Morris explained Option 2 was more reliable. The two-pump system offered a
back up. Roll Call Vote: Councilor Marsh, Lemhouse, Rosenthal, Morris, YES; Councilor Voisin,
NO. Motion passed 5-1.
Councilor Slattery/Lemhouse m/s to approve the Medford Water Commission Wholesale Water
Service Agreement. Roll Call Vote: Councilor Marsh, Lemhouse, Rosenthal, Lemhouse, Voisin,
and Slattery, YES. Motion passed.
2. Annual appointments to the Citizen Budget Committee and the Council liaison to the Municipal
Audit Commission
City Recorder Barbara Christensen received one application from Chase Mayer and Garrett Furuichi was
interested in reappointment. There were three vacancies on the Commission. Council requested that the
City Recorder continue to advertise for the two vacant positions on the Citizen Budget Committee and
bring to council once more applications are received.
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Councilor Slattery/Lemhouse m/s approval of Budget Committee member Garrett Furuichi with a
term ending December 31, 2018. Voice Vote: all AYES. Motion passed.
Ms. Christensen went on to explain the process for Council Liaisons was to have the next liaison in place
prior to the end of the current liaison's term. Council preferred waiting until January 2015 to make the
appointment and include the new Councilor in the process.
3. Solid Waste Franchise rates & fees update resolutions
Management Analyst Adam Hanks explained one of the recommendations of the ad Hoe Recycle Center
Committee was a sticker program for curbside recycling to match the solid waste sticker program already
in place. Recology General Manager Steve DiFabion noted a typo in the rates for the 32-gallon and the
64-gallon recycle carts. He would get back to staff and Council with the correct cost. Mr. Hanks went on
to explain staff separated the administrative operations standards and rules from the franchise rates and
fees so there were two resolutions before Council.
Councilor Marsh/Slattery m/s to approve Resolution #2014-22 Solid Waste Franchise Rates and
Fees repealing 2013-32. DISCUSSION: Councilor Marsh clarified the sticker program provided an
incentive for community to participate in recycling at a more modest level than was currently required in
the program and would reduce their overall waste stream. Mr. DiFabion explained Recology used
Reduce, Reuse, and Recycle, as third to emphasize Reduce and ultimately not produce materials that
require recycling. Councilor Slattery raised a point of order.
Councilor Slattery/Rosenthal m/s to suspend Council Rules. Voice Vote: all AYES. Motion passed.
DISCUSSION: Councilor Marsh understood the intent but wanted to be clear on the language stated in
the staff report.
Councilor Lembouse/Rosenthal m/s to reinstate Council Rules. Voice Vote: all AYES. Motion
passed.
Roll Call Vote on main motion: Councilor Rosenthal, Lemhouse, Marsh, Slattery, Morris and
Voisin, YES. Motion passed.
Councilor Marsh/Rosenthal m/s to approve Resolution #2014-23 adopting Solid Waste
administrative operations standards and rules. Roll Call Vote: Councilor Rosenthal, Lemhouse,
Marsh, Slattery, Morris and Voisin, YES. Motion passed.
4. Solid Waste Franchise: A presentation of Financial Incentive Options for waste reduction
Management Analyst Adam Hanks explained the report was part of the franchise agreement approved
October 2013. The report included a range of options or methodologies for rate structures to incentivize
waste reduction and prevention. Recology General Manager Steve DiFabion addressed highlights and
explained a primary tool used in Jackson County to increase diversion was education. Recology
employed one full time position devoted to education and thought outreach would increase the
effectiveness of education. Rate Approaches entailed engineering rates to drive a particular behavior to
recycling. He went on to explain what had worked in San Francisco regarding waste and recycling.
City Administrator Dave Kanner addressed Mandatory Garbage Service and explained mandating
garbage and recycling service for all customers alone provided the incentive to recycle because there were
no disincentives. Mr. DiFabion confirmed some communities used mandatory garbage and recycling
service to achieve waste reduction and recycling goals and described methods used in San Francisco.
Mandatory service often lead to collection issues where people refused to pay or use the service and often
led to liens on properties. It also had potential to lower rates but overall required more research.
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Council agreed education was important wanted options on 24-gallon cans, composting, rewards for good
behavior, expanded sticker programs, and information on mandatory service.
Julie Matthews/2090 Creek Drive/Shared her prior experience with Recology and mandated rates in the
San Francisco area explaining rates doubled and almost tripled very quickly. In San Jose, the mandate
held property owners responsible for garbage whether or not renters paid their bill, even if the property
was vacant. Mandating rates introduced controls that were not fair and opened up the possibility to
continue increasing rates. The community needed incentives instead.
Mayor Stromberg clarified when Recology requested a rate increase the City hired a consultant that
analyzed that data and determined the requested rates were reasonable.
Staff would further research recommendations and return with more information. Implementing 24-
gallon can service and composting would come back at a different time.
5. Economic Development Strategy program and activity update
Item delayed due to time constraints.
6. Discussion of Normal Neighborhood Plan Working Group recommendations
Councilor Marsh provided a presentation that included:
• Original Land Use and Street Framework
• Recommended Land Use and Street Framework
• Recommended Land Use Framework - Land Use and Housing Density:
1. Housing Density gradation should move from south to north. This would place higher
density development near the railroad tracks and within a relatively short distance to transit
lines, parks, and community facilities. This approach will also protect the existing watershed.
2. Zoning designations applied with the Normal neighborhood area should be consistent with
the zoning of adjacent land within the City Limits, and use zoning labels that are comparable
to those used in the rest of the city while recognizing the Normal Neighborhood (NN) district.
3. Maintain option for neighborhood serving businesses and services close to East Main Street
near the northeast corner of the plan area.
• Recommended Open Space Framework
Open Space:
1. Maintain the approach toward designation of open space and conservation areas proposed in
the draft plan. Amend the plan to allow non-conservation open space to be relocated
requiring a minor amendment application.
2. Obtain a review of the final plan by the Parks Department prior to adoption.
Design issues:
1. Maintain a maximum building height of 35 feet.
2. Encourage the development of clustered housing that integrates with open space and respects
the viewshed.
3. Provide for a smooth transition between adjacent developments to promote neighborhood
cohesiveness, provide open space in a coordinated manner, and secure an efficient circulation
system.
• Recommended Street Framework
Transportation:
1. The internal transportation system's local street network should incorporate multiple
connections with East Main Street as shown, and maintain the Normal Collector as
designated in the draft plan. Additional connections to East Main Street or Clay Street,
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which are not shown in the proposed Street Framework, should require a major amendment to
the Plan.
2. Internal local streets should be aligned to provide a grid pattern, including clear east-west
connections.
3. Pedestrian and bicycle pathways are critical, especially as a means to connect residents with
the middle school and the existing bike path.
4. External transportation improvements, including the railroad crossing and improvements to
East Main Street are integral and should proceed in concert with development.
• Next Steps
The working group believes that as a next step that the city should direct staff, and/or an outside
consultant, to identify and quantify:
1. The need and possible means for public infrastructure investment in the project, and
2. The overall costs and benefits of development to the City.
• Alternative Motions
o Direct Staff to amend the Normal Neighborhood Plan implementing ordinances to
incorporate the selected recommendations of the Normal Neighborhood Working Group as
discussed by Council, present the updated plan to the Planning Commission and Parks
Department for comment, and schedule a review before the Normal Neighborhood Working
Group upon completion.
o Direct Staff to conduct an analysis of external infrastructure improvements [transportation,
water, sewer, storm drain] associated with the plan area's development to identify and
quantify the need and possible means for public investment, and present this analysis to the
Normal Neighborhood Working Group upon completion.
Mayor Stromberg supported the plan and thought it could go further. Council was not required to annex
and needed to ensure there was enough of a public benefit to make it worthwhile for what the City will
have to do to make this happen. It was important the plan be designed to be feasible to develop.
Annexations created value in the system and alternately the developers had to take significant risk. The
second thing was they took significant steps to relate to the actual physical set up and not just working out
of abstract concepts. Parks and Recreation would participate and look at ways to integrate it as a park
concept or at least part of it. The Working Group still needed to figure out affordable housing. Another
issue was circulation. He wanted to take into account people who had already developed in the area and
build on their efforts. He also thought 500 units was too much and now was the time to look at the city as
a whole, decide the urban core and put infrastructure there with public transit and more density at key
locations and minimize density at the fringes.
Planning Commissioner Rich Kaplan commented on the process and while they reached consensus on
some recommendations, there was still different opinions on how the plan should look. Getting input
from the Parks and Recreation Department and the developers with help resolve the affordable housing
issue. Another issue was wetlands. Mayor Stromberg added the wildlife corridors as another piece.
Community Development Director Bill Molnar thought the April 2015 completion date for analysis was
achievable. Council discussed having the developer make a proposal on transportation costs and the
majority did not support the suggestion.
Debbie Miller/160 Normal Street/Explained she was on the Planning Commission and had recused
herself from all meetings regarding the Normal Neighborhood Plan and spoke as a private citizen. She
had testified many times on the problems of developing the area and the number of dwelling units
consultants and the Working Group considered. Allowing 400 units was too many houses, would most
likely not be family oriented and would create a ghettoisation on the edge of town. In addition, the
transportation east and west was not thought through well enough.
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Carol Block/355 Normal Street/Thought the East Main improvements and Railroad Crossing costs
would be enormous. She suggested Council poll the community on the issues residents have brought up
repeatedly at the Working Groups. Taxpayers had a say and it was important to include them. She
commented on the survey already taken and questioned how many people received the survey and
thought it was only thirty people. She did not understand why the City was still looking into Normal
neighborhood when there was 20 years of buildable land inventory in other areas. Out of the 94 acres
considered for the project, owners of 40 acres had no intention of building ever.
Councilor Marsh affirmed the Working Group was not backing away from the ordinance requiring 25%
affordable housing. It made better sense to move the higher density area to the southern area. Affordable
housing did not have to be in the higher density area. Senior Planner Brandon Goldman explained the
Department of Housing and Urban Development (HUD) limited state and federal funding to help
subsidize affordable housing if there were noise issues and the Railroad in operation would constitute one.
Alternately, that would not prohibit a private property owner from developing affordable housing without
federal subsidy. Councilor Marsh addressed the wetlands and noted the Working Group made no changes
to the Planning Commission's recommendation to preserve wetlands as distinguished on the 2008 map
and included the large open space delineations. Councilor Marsh would work with staff on including the
Transportation Commission in the process.
Councilor Morris/Lemhouse m/s to direct staff to amend the Normal Neighborhood Plan
implementing ordinances to incorporate the selected recommendations of the Normal
Neighborhood Working Group as discussed by Council, present the updated plan to the Planning
Commission and Parks Department for comment, and schedule a review before the Normal
Neighborhood Working Group upon completion. And, to direct staff to conduct an analysis of
external infrastructure improvements associated with the plan area's development to identify and
quantify the need and possible means for public investment, and present this analysis to the Normal
Neighborhood Working Group upon completion. DISCUSSION: Councilor Morris thought the plan
needed to go back to the Planning Commission and Public Works for numbers and then back to Council.
Councilor Lemhouse clarified this was not a final adoption of the plan and there would be more
opportunity for public comment.
Councilor Voisin/Marsh m/s to amend the motion to include review by Transportation
Commission. DISCUSSION: Councilor Voisin thought it was important for the Transportation
Commission to review the plan. Roll Call Vote: Councilor Marsh, Slattery, Morris, Voisin,
Rosenthal, and Lemhouse, YES. Motion passed.
Roll Call Vote on amended main motion: Councilor Marsh, Slattery, Morris, Voisin, Rosenthal,
and Lemhouse, YES. Motion passed.
7. Direction to staff on how to enforce the Food and Beverage tax ordinance
City Administrator Dave Kanner explained the item was a result from a complaint the City received
during the summer that food and beverage vendors at the Tuesday Growers Market were not paying Food
and Beverage Tax. The complaint originated from a brick and mortar food and beverage vendor who felt
it was unfair competition.
The City notified two vendors they were in violation of the Food and Beverage ordinance. Neither paid
the taxes owed, appealed, or contacted the City to establish a payment plan. Two weeks after contacting
the vendors, the Growers Market contacted the City for information about the Food and Beverage tax.
Administrative Services Director Lee Tuneberg requested information from the Growers Market on who
the vendors were so the City could contact them. The Growers'Market did not comply with this request
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for several weeks and had made no effort to comply with the City's request that the vendors pay their
taxes.
There was a misconception the food and beverage vendors did not think they were responsible for the
Food and Beverage tax because the Growers Market was a mutual benefit non-profit and that was not the
case. Another misconception was food and beverage vendors had not been charging the tax to their
customers. Under the Food and Beverage Tax Ordinance, they were not required to charge the tax to their
customers. They had the option of building it into their prices. It was the operator, not the customer,
responsible for paying the tax.
David French/864 Cypress Point Loop/Owned Griffin Creek Coffee and was a member of the Growers
Market for the last three years and thought the Food and Beverage tax needed to be adjusted. He was in
operation for less than 8 hours a week in Ashland selling cups of coffee for $1.00. The revenue the City
would gain from him weekly was approximately $7-$11. He asked the Council to consider exclusion for
smaller businesses. The Food and Beverage tax actually really burdened the tourist community. The
businesses were not paying the tax, the customers were. Additionally, imposing a retroactive tax placed
an unfair burden on a small business owner.
Monica Rey/12310 Ramsey Road, Gold Hill/Explained the Growers Market was cooperating with the
City of Ashland. Currently they were altering their policies and information administered to their
members regarding the enforcement of the Food and Beverage tax. They immediately contacted Mr.
Tuneberg. During their monthly meeting, they discussed the tax and prepared to move forward. They
sent the City the list of vendors requested and notified their vendors they were eligible for this tax in the
future and needed to keep records and paperwork and deposit the taxes. Their only request was starting
the tax 2015 since it was new to their vendors. It seemed unfair to enact the tax retroactively when the
Growers Market was not aware it applied to their vendors.
Jerry Painter/940 SW 6th Street/Owned Daddy's Donuts & Juices and was shocked when he received a
letter stating he was responsible for retroactive Food and Beverage tax from the time he began selling at
the Growers Market 20 years ago. He did not see the reason or fairness in the letter and thought it was a
hard tactic to frighten the vendors. The tax was obviously for tourists and the Growers Market was not a
tourist attraction, attracting approximately 5% tourists. Food vendors could not sell food at the Saturday
market downtown. Apparently, the exclusion was due to food vendors not paying enough taxes. It was
not fair to have food vendors pay taxes and still exclude them from the Saturday market. The right thing
to do was leave things as they have been, tax the permanent downtown businesses that will collect the
larger part of sales from tourists and let the micro part time restaurants have the chance to stay in business
and not burden the people of Ashland with more taxes.
Marcella Bell/637 Red Oak Street, Central Point/Explained the seasonal nature of their business as
well as their recent efforts to transition to electronic record keeping led to a situation where current
leadership and membership was unaware that any of the members were obligated to collect Food and
Beverage tax. They recognized that ignorance did not constitute an exemption from their responsibility
and that was not why they were there. They were there to ask that the City allow the members affected
by the tax collection to move forward in a way where they could keep accurate records. Vendors
operated their businesses in Ashland on an incredibly limited basis, 36 days throughout the year with a
maximum of 144 hours. While they recognize they made an error they wanted to correct the error in a
way that allowed accurate record keeping and upfront assessment rather than after the fact estimates.
Kyle Reilly/14855 East Evans Creek Road, Rogue River/Urged Council to defer the enforcement of
the Food and Beverage tax to 2015. The majority of food vendors were willing to pay the tax but a
retroactive tax would be very difficult at this point.
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Councilor Marsh/Lemhouse m/s to defer enforcement of the Food & Beverage Tax Ordinance
against prepared food operators at the Tuesday Growers Market until 2015.
DISCUSSION: Councilor Marsh thought the City needed to move forward with the imposition of the
tax. It had been ambiguous and deferring enforcement until 2015 allowed a fresh start. Councilor
Lemhouse thought what was unfair was mischaracterizing a tax that had been in place for 20 years as a
retroactive tax when it was not. For whatever reason the Growers Market had not had a process in place
to ensure members were aware of the tax. He appreciated Ms. Bell's testimony and how the Growers
Market was creating policies regarding the tax. The fairness issue to him was telling some food vendors
they did not have to do what others who conduct the same business have done. Council was being asked
to be unfair. He was not sure whether it was worthwhile to impose the tax in 2015 instead requesting
retroactive tax. Councilor Rosenthal thought Council was rushing through the discussion and thought the
item should be continued to the next meeting. Councilor Voisin agreed with Councilor Rosenthal but also
wanted staff to look into adding the Growers Market as an exemption to the Food and Beverage
ordinance.
Councilor Slattery/Lemhouse m/s to postpone consideration of this item until next meeting. Voice
Vote: all AYES. Motion passed.
ORDINANCES. RESOLUTIONS AND CONTRACTS (None)
OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS
Councilor Slattery noted Southern Oregon University (SOU) football team won the quarterfinal game and
was playing a semi-final game in Chicago Saturday. People interested in viewing the game could go to
the SOU website. In addition, the SOU Girls Volley Ball team was in the nationals.
Councilor Marsh announced the State of the City event was scheduled for January 27, 2015 at the
Community Center at 5:30 p.m. People interested in participating in the planning could contact Councilor
Marsh.
ADJOURNMENT OF BUSINESS MEETING
Meeting 'ourned at 10:30 p.m.
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Barbara Christensen, City Recorder Jo n Stromberg, Mayor