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HomeMy WebLinkAbout2016-0202 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, and the length of the agenda. AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL February 2, 2016 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. Business Meeting of January 19, 2016 2. Study Session of January 19, 2016 VI. SPECIAL PRESENTATIONS & AWARDS 1. Mayor's proclamation of February as Child Trafficking Awareness Month 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. Minutes of boards, commissions, and committees 2. Appointment of George Schoen to the Airport Commission 3. Contingent approval of an airspace license for Plaza Condo Unit Owners Association, Inc. 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, COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9, OR ON CHARTER CABLE CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT W WW.ASHLAND.OR.US 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 None XI. NEW AND MISCELLANEOUS BUSINESS 1. Plastic bag ban - one year review 2. Update on issues involving the Vinyl Club and the Granite Tap House XII. ORDINANCES, RESOLUTIONS AND CONTRACTS 1. First reading by title only of an ordinance titled, "An ordinance establishing a tax on the sale of marijuana and marijuana-infused products in the City of Ashland and referring said tax to the voters of Ashland in the November 8, 2016 general election" and move to second reading. 2. First reading by title only of an ordinance titled, "An ordinance creating AMC Chapter 9.30 to prohibit smoking in places of employment, in enclosed areas open to the public, and in downtown Ashland" and move to second reading. XIII. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS 1. Council endorsement of SB 1574, relating to greenhouse gas emission goals and carbon pollution markets (request of Councilor Marsh) 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 1-800-735-2300). 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. OR ON CITARTER CABLE CHANNEL 180. VISIT TIIE CITY 01' ASI [LAND'S WEB SITE AT WWW.ASHLAND_OR.US City Council Business Meeting January 19, 2016 Page] of 8 MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL January 19, 2016 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, Seffinger, Rosenthal, and Marsh were present. MAYOR'S ANNOUNCEMENTS Mayor Stromberg explained the Study Session would follow the Regular meeting. He went on to announce the City was accepting applications for annual appointments to the various Commissions, Committees, and Boards. The deadline for applications was March 18, 2016. APPROVAL OF MINUTES The minutes of the Study Session of January 4, 2016, Executive Session of January 4, 2016 and Business Meeting of January 5, 2016 were approved as presented. SPECIAL PRESENTATIONS & AWARDS Police Chief Tighe O'Meara, Public Works Director Mike Faught, and Fire Chief John Karns described flood event responses for each of their departments. The Public Works Department had excavators at key locations where previous flooding had occurred. The G1S Department had prepared maps and there were agreements with various contractors to respond at specific locations. Crews would split into 12-hour shifts for any event that happened. Chief Karns had located shelters if needed. The Police Department would activate all police personnel in the event of a flood and use the 12-hour shifts currently in place. The Fire Department would increase staff and deploy one medical and one fire resource on the other side of the inundation zone. Also in place was a file of historic flood zones for the reverse 911 system. The Fire Department would access the citizen alert system to provide status. They went on to answer questions regarding flood areas, Ashland Creek, Reeder Reservoir, and the plan to manage spillover and overtopping. PUBLIC FORUM Susan Rust/42 N Wightman Street/Requested information and expressed concern regarding the Southern Oregon University (SOU) co-generation plant. Mayor Stromberg explained the City Administrator could answer Ms. Rust's questions. Another area of concern was Roca Creek at East Main Street and North Wightman Street where debris had piled up more than once. She had written letters to staff over the years without response. Eventually the City did some dredging that tore up the banks. It was upsetting the City had never responded to any of her correspondence over the years. Mayor Stromberg requested the City Administrator and Public Works Director to contact Ms. Rust regarding her concerns. Huelz Gutcheon/2259 Hwy 99/Buying real estate was a safe and secure way to make money. A person could build several cheap rentals before carbon taxes, environmental impact payments, or retroactive charges went into effect. First, they had to get permission from the City controllers. That could be difficult unless the individual had inside information. That could happen if someone showed up at all the meetings, was charming, learned what the controllers wanted and designed construction accordingly. City Council Business Meeting January 19, 2016 Page 2 of 8 Paul Rostykus/436 Grandview Drive/Addressed a recently installed guardrail at 345 Grandview Drive, thought it violated the Ashland Municipal Code (AMC) 13.02.050 Encroachment Permits and shared concerns regarding safety. City staff had explained the guardrail was exempt from the Encroachment Permit because it was a guardrail and handrail. This guardrail was 350 feet long. The driveway was steep, had numerous variances and it was difficult to see cars. He disagreed with the minor impact statement. City staff informed him the installation met City guidelines that referred to Oregon Department of Transportation (ODOT) specifications. Without a plan, application, permit, and inspection, he questioned how the installation was safe. The guardrail also narrowed Grandview Drive 2-6 feet creating safety issues for pedestrians. Mayor Stromberg requested the City Administrator to contact Mr. Rostykus and update Council on the issue. Tara Light/2234 Siskiyou Boulevard/Read from a document submitted into the record regarding solutions to behavioral issues in the downtown area. CONSENT AGENDA 1. Minutes of boards, commissions, and committees 2. Liquor license application for Bonnie Chirrick dba Cafe 116 3. Appointment of Max Reinhardt to the Public Art Commission 4. Appointment of Sue Newberry to the Transportation Commission 5. Approval of 2016 Council liaisons to boards, commissions, and committees 6. Authorization to amend a contract for municipal audit services with Pauly, Rogers & Co. P.C., extending the contract for one year 7. Authorization to amend a contract with Diamond Parking Services extending parking enforcement services up to two years 8. Approval of a public contract exceeding $100,000 for cardiac monitor defibrillators and automated external defibrillators 9. Contract addendum with Evergreen Job & Safety Training, Inc. 10. Adoption of findings for Planning Action PL-2013-01858, relating to three separate approved ordinances which amended the City of Ashland Comprehensive Plan, Comprehensive Plan Maps, Transportation System Plan, and Land Use Ordinance (Chapter 18) adopting the Normal Neighborhood Plan Councilor Voisin pulled Consent Agenda items 47 and 49 for discussion. Administrative Services Director Lee Tuneberg explained revenue from parking tickets, fees, and charges funded parking enforcement, improvements, studies, and operations. The Hargadine parking structure paid debt service, operation, maintenance, and care of the building. Superintendent Mike Morrison addressed Consent Agenda item 49 and explained staff budgeted job and safety training every year. This request extended the original agreement an additional two years. Councilor Voisin/Rosenthal m/s to approve Consent Agenda items. Voice Vote: all AYES. Motion passed. Joseph Kauth/1 Corral/Spoke on Consent Agenda item 410 regarding the Normal Neighborhood Plan. Three years ago the Mayor had an arborist indicate a tree next to his house was a fire hazard enacting the Ashland Forest Resiliency (AFR) cut because it was deemed a fire hazard by a handful of national organizations really not involved with the area. When questioned by Mayor Stromberg, Mr. Kauth further explained he had overheard a conversation the Mayor had regarding a tree in his yard that was a fire hazard. Ever since that time, the Mayor had been suggesting that fire was a huge problem and the AFR cut was in City Council Business Meeting January 19, 2016 Page 3 of 8 its third year. Councilor Marsh raised a point of order noting that Mr. Kauth might not realize he was speaking on the Normal Neighborhood Plan. Mr. Kauth responded his testimony was context and continued, equating weather patterns and drought experienced in California to the AFR cut. Mr. Kauth friended Mayor Stromberg on social media and began suggesting the slash piles of thousands of green material were acting as a lightning rod. This created a rush to cut green trees creating thousands and thousands of lightning rods. Developing 500 houses on one of Ashland's last wetlands was impetuous, unwarranted, greedy and worthy of investigation. PUBLIC HEARINGS (None) UNFINISHED BUSINESS 1. Request to extend City water service outside of City limits John Chmelir/West Jackson Properties/Continued with his presentation to request the City extend water service to his facility. He provided statistics on the increase of Alzheimer's disease, the need for beds for these patients, and the necessity of a fire sprinkler system. The letter from the City's consultant suggested the request to connect to city water was a complicated engineering issue and it was not. The City's Talent Ashland Phoenix (TAP) line had a capacity of 4.25 million gallons per day (mgd). The pump station would put out 3 mgd when upsized to its final size. There was no way their connection would reduce the capacity of the line. The fire hydrant line they wanted to connect to was below the pump station and not affected by the pump station. West Jackson Properties wanted to connect to the line that connected to the fire hydrant line. In the event of a fire, the Fire Department would connect to that line anyway. The ordinance was not clear that all conditions had to be satisfied simultaneously. The request met approval criteria for No Detriment and In Ashland's Best Interest. Mr. Chmelir listed the things West Jackson Properties had done for the City that ranged from moving businesses out of the floodway to approving an easement for the City to have a temporary pump station. He did not think the approval criteria to obtain a failure letter from the county and the infeasible determination criteria were possible or feasible. Without the extension to TAP, the state, Fire District 5, and the Public Works Department would require a storage tank that held 40,000-45,000 gallons of water. He had experience sizing and building water storage systems, confirmed the City paid them for the easement and thought he got close to a fair price for the easement. He went on to address the seven conditions recommended by staff in the Council Communication. The second condition requiring the applicant to construct a distribution line within the city to his property was not workable. They complied with the majority of conditions stated. However, there was a conflict in the code between siting of buildings and parking and development in a flood plain. If the Council denied the request for extension, they would continue to build the project. The project was for profit. Connecting to the TAP line would save the applicant money, was safer for the residents, safer for the firefighters, and a reasonable accommodation considering all the things they had done for the City. City Administrator Dave Kanner explained the staff recommendation remained the same. He confirmed it was possible to connect a fire suppression system to the TAP line. The question was whether the City should. From an infrastructure planning, land use, and legal standpoint, Council should deny the request. Public Works Director Mike Faught introduced RH2 Regional Manager Jeff Ballard who reviewed the information provided by Mr. Chmelir and his engineering consultants as well as the questions submitted by Mr. Chmelir at the last Council meeting. Mr. Ballard agreed with their calculations of capacity. The line was more than capable in size and volume to supply the proposed facility. The City had the ability to serve that property. That said, he did not recommend allowing the connection. The City spent millions of dollars City Council Business Meeting January 19, 2016 Page 4 of 8 to supply an emergency connection to Ashland. They hired him to design, assist with construction, and coordinate with Mr. Chmelir to get the facility operating. The City had not evaluated how it benefited the city or determined use over the next 5-20 years. TAP was a large investment and provided a significant benefit to the city. From a technical standpoint, he would never recommend making a quick decision on a request that could affect the flexibility of the City's long-term use of an investment that size. The City installed the fire hydrant at Mr. Chmelir's request. Allowing the extension would tie the City to that connection in perpetuity. If Council wanted to serve that facility, the City should evaluate it as a system improvement in that area and service area and verify whether it affected long-term use. Mr. Faught added staff did not recommend the connection either. As the City moved forward to update the Water Master Plan there were some portions of that system they would have the consultant review. The City paid Mr. Chmelir $161,000 for the property and the easement. Mr. Faught worked with Mr. Chmelir and Jackson County on the right of way and secured an easement from the County before Mr. Chmelir took back ownership. The City also worked with Mr. Chmelir on facility design. The Public Works Department did not recommend an isolated connection like the one proposed. Mr. Ballard addressed the difference between a fire hydrant and a fire suppression system. The fire hydrant would function independent of anything else. If the fire connection were allowed, Jackson County would not require Mr. Chmelir to build a facility that supported his site against fire. If Council denied the connection, the County would still require him to build those facilities to ensure the building had adequate fire suppression. If the City supplied fire suppression to that building, they would have that responsibility and liability forever. It was a different level of responsibility and liability commitment than a fire hydrant. Water systems in general had two types of pipes, transmission, and distribution. Distribution lines supplied water to customer connections, lines to the fire hydrants and delivered water from storage to the customers. Transmission lines moved water from a source to a distribution system. The TAP line was a high-pressured pipeline that moved water from other towns to Ashland. Minimizing connections to that line helped maintain flexibility for the future use of that facility. Currently, the TAP system could supply 2.13 mgd to Ashland. The City of Talent supplied that water from their pump station to Ashland. If the City ran that pump station at 1,740 gallons per minute, Talent may not have the capability to supply the fire suppression at that moment to that site. Talent did have storage capacity and the City of Ashland would have to make a commitment based on that storage to supply water to the fire connection. Growth areas and future developments were planned, coordinated, engineering evaluated, and recommendations made. The current request bypassed the planning and evaluation process to determine the best use. Mr. Faught added the City would most likely build a separate distribution system in the north end as land incorporated within city limits. It would not be a transmission line. Staff had not planned or reviewed any of that as of yet nor had they looked at future growth in that area to consider water sources and those were concerns. The Water Master Plan update would look at the proposal to increase TAP from 2.13 mgd to 3 mgd. That would affect multiple systems. Staff would also review the recently adopted Normal Neighborhood Master Plan and distribution systems for the entire north end instead of one isolated fire connection. Mr. Kanner clarified the fire hydrant was not required by any government agency. It was a negotiation point in the purchase and sale agreement in the easement with Mr. Chmelir. City Attorney Dave Lohman explained the City would have additional liability and provided examples. Staff could write an ordinance that provided for a class of users if it was in the City's best interest. This would not apply to a single request. Mr. Faught addressed annexation and explained the developer paid for the infrastructure. The City would only participate in the project through System Development Charges (SDC). The developer would provide the engineering and the City would review the plans to make sure it City Council Business Meeting January 19, 2016 Page 5 of 8 would work with the city systems. Mr. Kanner added historically Ashland had taken strong measures to discourage urban style development outside city limits. This was not a request for an exception to the ordinance to allow urban style development outside city limits. It was a request for Council to ignore the ordinance to allow this development outside city limits. If Council wanted to extend the line, staff could bring an amendment to the current ordinance and then reconsider the matter. Fire Chief John Karns explained the occupancy type for the facility would require a fire sprinkler system per state law. The Fire Department would consider the center a target hazard and would have a preplan developed. Council comments were interested in finding a way to provide water, questioned the reduction in use one connection might make, and how annexation would make the process easier. Opposing comments did not want to jeopardize the $8,000,000 investment the City made in TAP, noted potential liability issues, and how the request set precedence. Councilor Marsh/Seffinger m/s to deny the request from West Jackson Properties, LLC, for a connection to the City water system outside the city limits. DISCUSSION: Councilor Marsh noted the project was compelling but after reviewing the facts, she saw no reason to grant the request. It set a dangerous precedent and threatened potential management of an $8,000,000 investment. Approving the request would jeopardize a significant City infrastructure for people who did not live in the city or paid city taxes and were not part of the group of people the City invested in TAP. It would undermine future decision making for a single user outside city limits. Mr. Chmelir could move forward with the project with an investment of $150,000 for the tank. It also opened the door for future applications. The liability concerns of feeding a single user off a transmission line when there was no guarantee of redundancy was discomforting. Councilor Seffinger agreed with Councilor Marsh. The project was worthwhile and she supported it but it would set a precedence that would make it difficult to deny other applicants. Councilor Rosenthal wanted to support the connection. It seemed simple and straightforward. Staff and the City's consultant did not recommend the connection. He thought a step was missing, could not identify it, and wondered if there was a way it could happen anyway. Councilor Lemhouse looked at the request differently and wanted to continue to work on it with staff to see if the City should explore annexation. Council should be willing to look beyond the boundaries for things that add to the community. He would not support the motion and wanted to see further discussion and exploration. Councilor Morris would also vote against the motion. There had to be a way to make it work. Eventually the area would annex into the city and the water tank demolished and redone. Councilor Voisin explained the holding tank would still need water after it emptied. The hook up was already there and questioned why, the applicant could not connect to the line. The reduction in flexibility regarding TAP was vague and she thought an exception could be made. That the request would set precedence was also an unknown and she did not think the liability was a strong issue. She was considering voting against the motion. Mayor Stromberg noted turning down the request would not stop the project. The state did not have standards on having a water tank for a sprinkler system that ran out of water during a fire. If they revised the ordinance and set up new standards Mr. Chmelir's facility could meet, anyone who met those standards would have a right to connect to the system. Liability issues were complicated by the fact that the City would serve the facility in a way not standard or typical of how the water system was engineered. Councilor Marsh added this was a specific application to hook up to the TAP line. If Council did not think that was a good idea they should pass the motion and have staff continue to explore options. City Council Business Meeting January 19, 2016 Page 6 of 8 Roll Call Vote: Councilor Rosenthal, Marsh, and Seffinger, YES; Councilor Lemhouse, Voisin, and Morris, NO. Mayor Stromberg broke the tie with a YES vote. Motion passed 4-3. 2. Second reading by title only of an ordinance titled, "An ordinance amending chapters 18.2.2, 18.2.3, 18.2.5, 18.3.2, 18.3.3, 18.3.5 and 18.6.1 of the Ashland Land Use Ordinance relating to the homegrown marijuana cultivation and marijuana-related businesses including production, processing, retail sales, testing, and wholesale and declaring and emergency" Planning Manager Maria Harris read the title in full then read the changes made to the ordinances aloud. City Administrator Dave Kanner explained staff was discussing the power used for industrial grows. It might be possible to amend the electric rate ordinance to allow the electric utility to negotiate specific power purchase agreements with large energy customers to provide an incentive for them to use electricity during off peak hours. It would minimize the impact on the system and the risk of getting into Tier 2 rates. In Ashland, a commercial indoor grow was limited to 5,000 square feet. Staff discussed the possibility of requiring LED lights but preferred to see state standards to that effect. The City could not use their Bonneville Power Administration (BPA) money to provide incentives for marijuana growers. It was preferable to have the statewide coalition of utilities currently working on this issue develop something the legislature voted into statewide building codes. Manufacturing equipment for processing marijuana had to meet building codes for mechanical and required the owner to have the appropriate permits. The state law originally prohibited the production of oils and extracts in a residential situation but amended that prohibition with the latest house bill. People could do a limited amount of extraction in a residence. Councilor Voisin/Seffinger m/s to approve Ordinance #3120 and to adopt the ordinance and declaring an emergency and to adopt the ordinance as an emergency enactment. DISCUSSION: Councilor Lemhouse would not support the motion. Allowing large commercial grows within city limits would be problematic for the same reasons Denver CO was experiencing and would take up available commercial space. Alternately, the federal government could change enforcement and that would have ramifications for large commercial grows. Another concern was not preserving R-1 zones and allowing marijuana grows. This was an attractive nuisance. Roll Call Vote: Councilor Rosenthal, Voisin, Seffinger, Marsh, Morris and YES; Councilor Lemhouse, NO. Motion passed 5-1. NEW AND MISCELLANEOUS BUSINESS Mayor Stromberg moved the Ashland Water Advisory Committee Member appointments to 91 with Council consent. 1. Ashland Water Advisory Committee Member appointments Public Works Director Mike Faught contacted the original Water Advisory Committee members and everyone was available with the exception of one whose workload would not permit participation. Mr. Faught was also recommending two more members, Rich Miller and Joe Graf. Councilor Rosenthal/Marsh m/s to approve the AWAC members as recommended by staff. Voice Vote: all AYES. Motion passed. 2. Recommendation of the ad hoc Committee on the City Recorder Position Councilor Seffinger explained an ad hoc committee was formed to review the City Recorder's position and make a recommendation whether the position should remain elected or become an appointed position. The committee met four times. After the second meeting, City Recorder Barbara Christensen decided to leave the committee but agreed to offer assistance as needed. The Committee determined unanimously that City Council Business Meeting January 19, 2016 Page 7 of 8 the position be appointed as it was throughout Oregon with the exception of two cities. Appointing the City Recorder would ensure the City had a qualified person filling the position. The City Recorder was an administrative position that made decisions and provided essential services to the City based on knowledge, skills, education, and experience. The Committee thought an appointed person that went through a rigorous selection process would possess skills critical to the position. Minutes from the third committee meeting prompted Ms. Christensen to contact ad hoc Committee Chair Seffinger and resulted in a fourth meeting January 7, 2016. During that meeting, Ms. Christensen explained if appointed, the City Recorder position should have the same selection and supervision status as the City Attorney position. She questioned if the position would be at a department head level and if it would retain a full time assistant as it did now. This input, the potential of updates to both the City Charter and Ashland Municipal Code (AMC), possibly moving some of the Recorder's duties to other departments, legal questions on specifying hours and qualifications in the City Charter and AMC along with procedures for removal of office, led Councilor Seffinger to recommend postponing the decision. This would give the Mayor and City Attorney time to review and respond and Council would be able to make a well informed vote on the matter. These changes would not go into effect until the current City Recorder retired. Alternately, it was unlikely the public would change the position from elected to appointed if the Council was not unanimous in their vote. The recent newspaper article written by Councilor Rosenthal made it clear the vote would not be unanimous. Councilor Seffinger/Marsh m/s to postpone the vote on this item until after the November election of 2016 for further study and to be placed on the January 2017 Council agenda. DISCUSSION: Councilor Marsh did not think it was reasonable to move forward on a Charter amendment that did not have full Council support. This would give them time to hear public input, gather more information and research. Councilor Seffinger clarified during the postponement of the item, the Mayor and City Attorney would continue working on adding minimum requirements to the City Charter and AMC, and establish a process for removal if an individual failed to meet the requirements. They would also determine what duties should remain with the position and what duties could be assigned to other departments. The ad hoc Committee recommended making the position appointed and not elected. She further clarified tasks not written in the City Charter could be reviewed and possibly moved to other areas within the City. Councilor Voisin thought staff needed clear direction regarding the issue and asked Councilor Seffinger to write out a detailed indication of what she wanted staff to do. The directions to staff were too vague. Councilor Seffinger did not think she was as vague as Councilor Voisin indicated. Mayor Stromberg explained they could talk to the City Recorder and make sure they had all her issues and points included in the review. Councilor Lemhouse/Rosenthal m/s to amend the motion that the Mayor, Councilor Seffinger, and Councilor Rosenthal work with the City Attorney to look at recommendations made by the commission and examine the recommended changes to consider that Councilor Seffinger brought forward. DISCUSSION: Councilor Lemhouse thought it would be beneficial to have Councilor Rosenthal as a counter to the Committee's pro on appointing the position. It was also appropriate since Councilor Rosenthal was Council Chair. Councilor Rosenthal added the object was spending more time to come up with something that would get more support on the Council while addressing the legitimate concerns staff and the ad hoc Committee identified. Councilor Voisin confirmed Council could send questions and concerns to the City Administrator. Roll Call Vote: Councilor Voisin, Morris, Lemhouse, Seffinger, Rosenthal, and Marsh, YES. Motion passed. City Council Business Meeting January 19, 2016 Page 8 of 8 Councilor Seffinger thanked the ad hoc Committee members for their efforts and contributions regarding the issue. Their work would help resolve the issue in a positive way. Councilor Lemhouse supported in general what the Committee put forward but recognized the issues Ms. Christensen brought up as well. His concern was having the best system in place and supported the idea of an appointed position if crafted correctly. Roll Call Vote on main amended motion: Councilor Voisin, Morris, Lemhouse, Seffinger, Rosenthal, and Marsh, YES. Motion passed. ORDINANCES, RESOLUTIONS AND CONTRACTS (None) OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS ADJOURNMENT OF BUSINESS MEETING Meeting adjourned at 9:47 p.m. Barbara Christensen, City Recorder John Stromberg, Mayor City Council Study Session January 19, 2016 Page 1 of 3 MINUTES FOR THE STUDY SESSION ASHLAND CITY COUNCIL January 19, 2016 Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Stromberg called the meeting to order at 9:53 p.m. in the Civic Center Council Chambers. Councilor Voisin, Morris, Le17111ouse, Seffinger, Rosenthal, and Marsh were present. 1. Look Ahead review Delayed due to time constraints. 2. Discussion of approaches to downtown behavior issues City Administrator Dave Kanner explained that the Council, in conjunction with staff, developed a list of potential actions the City could take to address some of the behavior issues downtown. Staff came back with a report on actions that would have budgetary implications first. They were also prepared to discuss two other priority items that did not have budgetary implications. Police Chief Tighe O'Meara explained that later in 2016 the Police Department would deploy second and third officers presently at the Police Academy. They were looking at making one of those officers a secondary Central Area Patrol (CAP) officer. This would dedicate two CAP officers to the downtown area. The second officer would take on a detective position and team up with another detective to comprise a new problem-solving unit (PSU) to address specific issues in town. This would give the department the flexibility to redeploy to the Exit 14 area if needed and assist if something acute happened during the midnight shift. If approved to hire two officers, that process would have to start soon in order to have officers ready by summer 2017. Chief O'Meara was not sure if they would have enough candidates for the Police Cadet Program and thought they might need to modify the program to include any college student interested in exploring a career in law enforcement in addition to students from the criminal justice or related field. Public Input Don Stone/395 Kearney Street/Thought the City had an obligation to provide some form of assistance to those living on the street not by choice. However, those on the street by their own choice exhibiting behavior not up to the standard Ashland was willing to tolerate should be escorted to the city limits and encouraged to leave town. He urged the City to use any legal way possible to make these people feel unwelcome. Andrew Kubik/1251 Munson Drive/Explained of the six options in the Council Communication he supported Option 2 that would add two new cadets at $10,000, Option 4 that provided two outreach workers at $37,000 and Option 46 that would add two downtown ambassadors at $35,000. The total cost was $82,000. Adopting these options for summer 2016 would give the City a clear indication if this were all they needed in addition to hiring the police officers mentioned earlier. He did not have a full understanding of the situation downtown and thought initiating the simpler options was a good start. He also noted the need for firefighters might supersede the need for police officers. J.C. Romero/no address/Explained he was a home free person and member of the community. The no camping ordinance and other such ordinances that targeted a certain class of individuals were against his father's law and the constitution. He felt that these laws must be stopped immediately before it damaged the community. He had some ideas to improve the downtown area that included more porta potties. Home City Council Study Session January 19, 2016 Page 2 of 3 free people are blamed for many things they did not do and provided examples. In addition, he thought the City should talk to the Community Emergency Response Team (CERT) and have them monitor things downtown. lie would start CERT training March 2016 and was more than happy to patrol the downtown area. Erick Wallace/no address/Explained he was home free and a resident. He renamed the camping ordinance the anti-homeless ordinance. The ordinance failed to mention a clear definition of camping. He read the definition of camping from Webster's Dictionary noting it did not classify camping as sleeping in a sleeping bag. Another issue was the City complaining about the downtown problem and the only thing they could come up with was more police, more jackbooted thugs to harass and intimidate the homeless community. According to the ordinance, anyone sleeping was camping. 'This was selective enforcement. He asked Council to imagine if they are targeted just for living. Councilor Marsh asked Mr. Wallace if he had a choice of being "housed" or "homeless" what he would choose. Mr. Wallace responded he would choose to be free, and not to be a slave. Louise Shawkat/870 Cambridge Street/There were constituents of Ashland asking for creative solutions to the responsibility the local society has to folks who were homeless and those with behavior issues. The majority of people had not had an untreated mental illness. a financial disaster, or a life-changing event that resulted in homelessness. There were individuals who wanted to sanitize Ashland. She questioned if Ashland wanted to dernonize and criminalize this part of the population. Homelessness was a symptom of a greater societal problem. Removing and ticketing them was an appeasement for those who were uncomfortable facing the reality of one of out- social problems. She thought Ashland could build upon the successes it had experienced helping those in need. Jacob Rubanowitz/357 Vista Drive/Explained he was an honor student at Southern Oregon University (SOU) and a member of student government. He was concerned with articles he had read in the Daily Tidings and conversations he had heard regarding the downtown. He was worried some of the ordinances passed were discriminatory against homeless folk. He had heard one of the solutions was posting signs that instructed tourists on how to interact with homeless people implying Council had an issue not based on conduct but directed towards the homeless. This made him worry about acting in good faith. Councilor Marsh thought option 2. Add two cadet positions to the Police Department for $10,000 was an obvious place to start. A uniformed presence downtown was the most powerful thing the City could do. Councilor Seffinger agreed a uniformed presence was the best deterrent for negative behavior. Councilor Rosenthal did not think the timing was right to hire two new police officers. Option 3, renting two jail beds from Jackson County was not feasible at this time either. He liked option 4. Social service outreach workers downtown from May through September and option 5. Education and signage downtown. Councilor Voisin wanted Council to be dissatisfied with the proposals. They did not solve any of the issues and there were ways that would. She did not want the police focusing on behavior that included drinking alcohol in public, possession of open containers, smoking marijuana in public, and urinating or defecating in public. Instead, she wanted them dealing with gang behavior, shootings, cybercrimes, stopping sex trafficking, keeping schools safe from gun violence, catching bank robbers, muggers, killers, and citing those who texted while driving. There were other ways to deal with the behavior the city was experiencing from travelers. She would not support any of the proposals. Councilor Marsh asked Councilor Voisin to elaborate on these other ways to deal with the behavior issues. Councilor Voisin referred to the success a 12 year old encountered who treated the homeless as part of his family. She suggested the Housing and Human Services Commission develop a master plan on what the City Council Study Session January 19, 2016 Page 3 of 3 City could do for its homeless and travelers. Councilor Lemhouse clarified this was not about homeless people and had never been about the homeless. This was about behavior. Some of Council had worked with people in poverty for decades. He worked with people in poverty daily and understood the challenges they faced. There were many services for people in need or homeless. This was not about people in poverty or homeless. Ignoring small issues like behavior led to bigger issues and referenced the Broken Window theory. The City was on the right track and the proposals were reasonable. I le supported options 2, 4, and 6, wanted funding mechanisms for each as well as budgetary information on hiring two police officers. Councilor Morris wanted to see what other cities were doing like Palo Alto, CA. He also supported options 2, 4, and 6 but was not sure there were funds for two more officers. It was also evident piling money onto the problem did not solve the issues and used the Resource Center as an example. He further emphasized the issue was behavior and not homelessness. City Administrator Dave Kanner suggested postponing the item on the February 1, 2016 Study Session agenda regarding the Electric Utility and schedule a continued discussion of this item instead. Council agreed. Staff would provide funding mechanisms for Options 2, 4, 5, and 6. Council was also interested in options to run the Ambassador Program using volunteers. Mayor Stromberg explained there were two distinctly separate but related issues. One was behavior occurring downtown that was unacceptable, possibly criminal, threatening, and antisocial. The City needed to find ways to address that. At the same time, Ashland had local homeless people and he was concerned the behavioral issues were interfering with the City's ability to help theme Jackson County Mental Health would establish a facility during 2016. The City also wanted to assist anyone interested in getting out of homelessness. He thought the Housing and Human Services Commission could give Council input on these matters. Councilor Seffinger wanted an emphasis made during the winter to give the City more of a sense who the local homeless were and what the City could do to help them further. Meeting adjourned at 10:30 p.m. Respectfully submitted Barbara Christensen City Recorder PROCLAMATION u To . ,,r • Hundreds of thousands of underage girls and boys living in the United States, 7 and vastly greater numbers abroad, suffer in silence under the intolerable yoke of modern slavery. The defense of hurnan rights is an essential part of our national and local identity. ' a We recognize the people, organizations, and govermnent entities that are working to combat child traffrckirlg. C~,'~~~ • The President of the United States has declared January each year as National Slavery and Human Trafficking Prevention Month so we also add our support to this important initiative. NOW THEREFORE, the City Council and Mayor, on behalf of the citizens of Ashland, hereby proclaim February 2016 as: u "Child Trafficking Awareness Month and hereby urge all citizens to recognize the vital role they can play in ending modern slavery and to observe this month with appropriate programs and ~ i activities. Dated this 2nd day of February, 2016 John Stromberg, Mayor Barbara Christensen, City Recorder i 4 I i Minutes for the Climate and Energy Action Plan ad hoc Committee Dccemher 16.2015 Page 1 of 3 MINUTES FOR THE CLIMATE & ENERGY ACTION PLAN ad hoc COMMITTEE Wednesday, December 16, 2015 Siskiyou Room, 51 Winburn Way 1. Call to Order Roxanne Beigel-Coryell called the meeting to order at 2:04 p.m. in the Siskiyou Room. Committee members Bryan Sohl, Louise Shawkat, Greg Jones, Stuart Green, James McGinnis, and Claudia Alick were present. Staff member Adam Hanks was present. Committee member Rich Rosenthal was absent. 2. Appointment of Vice Chair Hanks stated that when Chair Rosenthal realized he would be unable to attend he requested that the group consider appointing a Vice Chair. Group agreed this would be important. McGinnis/Alick m/s to appoint Beigel-Coryell as Vice Chair of the committee. Discussion: Green stated that if she is uninterested in being Vice Chair is willing to take on the job. Beigel- Coryell stated that she is comfortable with either decision. Voice Vote: All Ayes. Motion Passes. 3. Approval of Minutes Shawkat/Green m/s to approve the minutes of December 2, 2015, as presented. Voice Vote: All Ayes. Motion Passes. 4. Public Forum Matt Hunter - thanked the group for their service. Stated he is a builder with Ashland Post and Beam. He would love to see make sure it is easier for people to do green building. He stated that he isn't talking about making it cheaper to do so, but instead having the process easy so more people are encouraged to do so. He wanted the group to know that there is a stringent building standard called the Living Building Challenge and that Julia Grable(sp?) in town can give them information on this standard. Because this standard is so strict, it frequently runs into challenges with municipal codes. Group has a brief discussion with Mr. Hunter regarding the types of municipal code conflicts he is referring to. Hannah Sohl - stated that the meeting time of this group is particularly difficult for students and working people to participate. She suggested that the group have some 4:00 p.m. or evening meetings. Hanks stated that when the schedule for this committee was set, the idea was for all the administrative type decisions to occur in the daytime meetings, but that during the public process Minutes 1'or the Climate and Energy Action Plan ad hoc Committee December 16. 2015 Page 2 of 3 most of those meetings will occur in a wider variety of meeting times, including evenings, for wider participation. James Stephens - stated that at the Climate Challenge event he understood one of the speakers to say that 70% of our energy comes from coal-fired plants. He has since discovered that this is not 100% accurate. We purchase power from BPA, which gets lots, but not all, of its energy from water. It is important to pay attention to where our power is coming from as most in Ashland would rather not purchase from coal, even if it's just in terms of accounting. When we talk about what electrons are being used, we need to be clear where they are generated. His understanding is that lots of our energy is from natural gas plants in Klamath Falls, which is not renewable. He wants to see more renewable energy production, but really would be happy if we would just not get any power from coal. He stated that when the group breaks out into smaller groups he would be happy to participate. Additionally, there is no reason for vehicles not to be run off of renewable resources like solar. Huelz Gutchen - stated that, in response to Mr. Stephens, where the actual electrons come from requires lots of interesting study. It doesn't really matter where we purchase our energy from, what it boils down to is how quickly those electrons arrive here and that ones created closer get here first. Which means that what we really need is to create our own using solar panels. He discussed some of the things agreed to in the recent Paris climate talks and stated that they agree we need to increase both solar panel installations and the use of electric cars. 5. Climate & Energy Action Plan RFP Hanks reviewed the previous motions regarding the appointment of the selection panel and stated that the City Attorney determined that executive session laws allow for an appointed committee to convene under executive session for the review of documents such as would be in the RFP selection panel process. This means we can add more members to the selection panel. However, neither he (the city attorney) nor the purchasing agent think that's a good idea. Adding more non-staff members creates a higher level of risk to the process in order to maintain compliance with public contracting law. One such risk is confidentiality. He also stated that seven responses to the RFP were submitted on-time. Group reviewed the timeline for the process. Group discussed whether the selection panel numbers should be increased. Some felt that it would help everyone who participates to get a better understanding of the process, as you can learn things, even from the contractors not chosen. Some felt the risk was minor. McGinnis/Stuart m/s that each member of the committee who wants to be involved be allowed to participate. Discussion: Group requested clarification regarding whether, after the contractor is selected, all the submittals would be available for review by the rest of the group. Hanks confirmed that all submittals would be public record, and therefore available to everyone, after the selection. Sohl stated that he understands this is an unusual situation, but as this is supposed to be a community-based process, having more members of the community participate Minutes for the Climate and Energy Action Plan ad hoc Committee December 16. 2015 Page 3 of 3 seems appropriate. Claudia stated she doesn't feel her skills would be best used in being on the panel. Group agreed that if she would rather use her skills in other, more creative, parts of the process that would be appropriate. Voice Vote: All Ayes. Motion Passes. McGinnis was the only committee member who wanted to be added to the selection panel (Shawkat requested of staff after the meeting adjourned to be added as well). Alick stated that she is trying to gain a better understanding of the group and was curious to know if the group considered running a paperless system a group value. Group agreed that, when possible, they want to minimize use of paper. Flanks stated that, unfortunately, some things (like the RFP selection process) can't be paperless yet due to meeting regulations, but that he would try to limit the use of paper otherwise. 6. Schedule and Agenda for Upcoming Meetings The next regular meeting of the group will be on January 20`" the main topic of conversation for that meeting will be the greenhouse gas inventory report. The selection panel will meet on January I It". 7. Adjournment Meeting adjourned at 3:08 p.m. Respectfully submitted, Diana Shiplet Executive Assistant Minutes for the Conservation Commission December 16, 2015 Page 1 of 7 MINUTES FOR THE ASHLAND CONSERVATION COMMISSION Wednesday, December 16, 2015 Siskiyou Room, 51 Winburn Way 1. Call to Order Roxane Beigel-Coryell called the meeting to order at 6:00 p.m. in the Siskiyou Room. Commissioners Bryan Sohl, James McGinnis, Mark Weir, Shel Silberberg, Risa Buck, and Cara Cruickshank were present. Staff member Adam Hanks and Councilor Mike Morris were present. Commissioner Marm Koopman and Councilor Rich Rosenthal were absent. 2. Consent Agenda Buck/Silverberg m/s to approve the minutes of October 28, and November 18, 2015 as presented. Voice Vote: All Ayes. Motion Passes. 3. Announcements The next commission meeting will be on January 27, 2016. The Earth Bowl subcommittee will meet on January 6, 2016, at 6:00 p.m. in the Hannon Library at SOU. The Conservation Classes subcommittee will meet on January 4, 2016, at 5:00 p.m. in the Hannon Library at SOU. Buck stated the City of Talent is considering a Styrofoam ban. Recology's leaf drop off has been rescheduled for this weekend, due to inclement weather on the original date. She spoke at the Association of Recyclers' conference in Portland and discovered that Ashland has good ideas regarding education and outreach to teach other parts of the state. Cruickshank requested a discussion of the SOU plan to use biomass for heating purposes. Beigel-Coryell suggested that Cruickshank read the minutes of the previous group discussion and if Cruickshank still had questions, she would be happy to connect her with someone at SOU to assist. Weir gave an overview of some of the agreements made at the Paris climate summit. Stated that this as encouragement for the Commission to continue their work. Cruickshank stated that, in conjunction with the Paris agreements, Portland passed a resolution requiring no new fossil fuels related infrastructure be built. 4. Public Forum Louise Shawkat stated that RVTD was set to do a presentation at the Transportation Commission, but was unable to attend due to illness, they sent a memo instead. She read some of it aloud and stated that it appears RVTD needs education regarding use of natural gas and the need for more, rather than fewer, transportation options. Huelz Gutchen - stated that at the last meeting he explained the four parts of energy and that as part of the recent Paris climate agreement 150 countries agreed to see what they can do to reduce carbons. Elon Musk gave a good talk about reducing carbons at the Paris event. Most important to him, though, was that Goldman Sacks representatives came and stated they have investors willing to spend lots of money on things like solar panels, electric cars, and windmills. Bill Gates stated this was all great, but what really needs to be done is to have good innovations. Minutes for the Conservation Commission December 16. 2015 Page 2 of '7 5. Reports/ Presentations/ Updates Downtown Recycling - Hanks stated he is not sure if they will meet the end of the year deadline. The subcommittee is working on signage and getting the Chamber of Commerce to agree to do the oversight. Council Update - Councilor Morris stated that Council just adopted the Normal Neighborhood plan. He gave some details of the plan and answered the Group's questions. He stated Council also passed an ordinance regarding the growing and processing of marijuana. There are lots of regulations regarding the number of plants allowed and setbacks. He has concerns regarding indoor growing and the burden on the electric system this could cause. Lastly, he stated that in January Council will be considering options for the Railroad Property clean up. City Conservalion and Operations - Hanks stated that the refrigerator recycling provider the City has a contract with recently encountered financial difficulties. Recology has stepped up to take their place and the City will go out soon for a new contract. Hanks stated that the Greenhouse Gas Inventory is nearing completion, he is working with the contractor to complete the narratives. It will be presented to the Climate and Energy Action Plan committee on January 20th. Lastly, the Public Works Director, Mike Faught, has agreed to send a staff member to the February commission meeting to answer questions regarding water and storm water. To make this an effective use of staff time, Hanks requested the group send questions to him in advance. 6. Old Business Sneak Preview Column - Buck/Silverberg m/s to approve the BYOB update as written by Weir. Voice Vote: All Ayes. Motion Passes. Weir/Cruickshank m/s to approve the Climate Action Plan update with the red-lined updates submitted by McGinnis. Discussion : Group discussed whether this was intended to be detailed or just an update. Group agreed that as they are doing these quarterly, it is just an update. Voice Vote: All Ayes. Motion Passes. Group discussed which months particular topics should be covered and determined that this would be the best schedule: • March - Natural Yard Care Solutions, written by Cruickshank • April - Earth Bowl, written by Silverberg and Weir • May - Climate Action Plan Quarterly Update, written by either McGinnis, Beigel- Coryell or Sohl • June - Water Conservation, written by Cruickshank and Weir • July - Conservation Classes, written by Buck • August - Climate Action Plan Quarterly Update, written by either McGinnis, Beigel- Coryell or Sohl • September- Living With Wildlife, written by Cruickshank Climate & Energy Action Plan - the committee met today, and most of the committee will be joining two staff members in reviewing the seven RFP proposals received. Final approval by Minutes for the Conservation Commission December 16. 2015 Page 3 of 7 Council on this selection is scheduled for February 2, 2016, which should keep the process on- track. Councilor Morris expressed concern at having so many committee members involved in what typically is a staff-only job. Sohl stated the reason for the extra participation is that it is a community-led plan and the committee felt having more community involvement was important. Solar Park Resolution Proposal - Sohl stated that a group of residents took a tour of the site. In his opinion, it is potentially a good location for a future solar program. He doesn't know all the particulars of the proposed project or of Public Works need for use of the site, but would like the group to consider the version 96 resolution, which has significant changes fi•om the last version (this version is attached to these minutes). Beigel-Coryell expressed concerns with this request going through the Conservation Commission and believes that it should instead be considered by the Climate & Energy Action Plan in their energy production section. McGinnis questioned the timing this resolution, and wanted to know why is there a need for it to be approved now, when the Climate & Energy Action Plan process in currently on-going. Councilor Morris stated the Council and Budget Committee declined this proposal when it was brought up during the budget process. He questioned why the proposal was then brought to the Conservation Commission. Hanks gave background information as to how and when the proposal was brought to the Commission. Group discussed whether the proposal would be approved by Council, most agreed it likely would not. Sohl/Cruickshank m/s to support the proposed resolution, version #6. Discussion: Cruickshank wondered if an updated version with additional clarifying changes regarding the timing would make the group more comfortable. Hanks stated that approving this resolution isn't the only option, the Group could approve a letter or memo to Council offering their encouragement to reserve the property and do a study of the proposal. Group discussed whether it was appropriate to approve the resolution or just ensure that the project possibility be included in the Climate & Energy Action Plan process. Some believe that it is important to push Council into considering challenging issues, others worried about losing Council confidence in the Commission. Group discussed timing of the proposal and whether there was any risk involved in delaying it. Determined there was little risk that the Council would sell the property, so there is little risk in a delay. Sohl stated that the important part is that many members of the community, including members of SOCAN, would like this project to be specifically addressed, if that's through the Climate & Energy Action Plan, then that would address their concerns. Roll Call Vote: Silverberg - no, Weir - no, McGinnis - no, Sohl - yes, Cruickshank - yes, Buck - no, Beigel-Coryell - no. No votes = 5, yes votes = 2. Motion Fails. McGinnis/Cruickshank m/s that the Conservation Commission recommend to the Ad Hoc Committee for the Climate and Energy Action Plan that the feasibility of a potential solar farm site on the Imperatrice Property be evaluated specifically, as a high priority, as part of the development of an energy plan for the City of Ashland within the new climate and energy plan. Discussion: Buck stated she has a personal issue with putting photovoltaic Minutes for the Conservation Commission December 16, 2015 Page 4 of 7 anywhere other than on buildings, and therefore can't support the concept. She's not convinced that considering the feasibility, in general, is a good thing. Sohl stated that her opinion is exactly why there needs to be a conversation as part of the Climate and Energy Action Plan, so all sides can be heard. Group agreed that these discussions are an important part of that process. Roll Call Vote: Silverberg - yes, Weir - yes, McGinnis - yes, Sohl - yes, Cruickshank - yes, Buck - no, Beigel-Coryell - yes. No votes = 1, yes votes = 6, Motion Passes. 7. New Business Bag Ban Revieit, - Hanks gave an update on the process to date and stated that there hasn't been as much response as he was hoping for, but there is enough to get a decent understanding of the retailers and grocers responses. The last piece is the Open City Hall topic, which should be open tomorrow. Weir expressed concerns with the data given by the SOU class. Hanks stated that he is not giving Council all of the data, as some of their conclusions and recommendations have faulty assumptions. Hanks stated that the most important bit of information out of this is that it appears the large grocery stores are using fewer brown bags, which means the purpose of the ban of getting more people to use reusable bags is working. Buck stated that if Council isn't going to require more enforcement on the smaller retailers to follow the ban, including the 10-cent fee, then they should just repeal that portion of the ban. McGinnis stated that the purpose originally was to use the 10-cents to make people more aware, and make bringing a bag a habit. Weir stated that in order for these types of bans to continue to be effective, a raise in the fees is required. He would like to see both a raise in the fee to 25-cents and an increase in enforcement by code compliance on the smaller retail establishments. Weir/Buck m/s that the Commission recommend to Council that the bag ban fee be raised to 25-cents per bag and that there be an increase in code compliance for those who are not complying with the resolution. Discussion: Silverberg stated that doing an increase could affect more change, but is concerned that bumping up the fee would erode any goodwill created in the community. McGinnis stated that this is all part of a larger conversation the group needs to have and would prefer a more focused discussion when they aren't under a time crunch. Most of the group agreed they were concerned with eroding the goodwill of the community. Weir/Buck agreed to amend their motion to state that the Commission is recommending to Council that they increase code compliance on those who are not complying with the ban. Roll Call Vote: Silverberg - yes, Weir - yes, McGinnis - yes, Sohl - yes, Cruickshank - yes, Buck - yes, Beigel-Coryell - yes. No votes = 0, yes votes = 7, Motion Passes. Meeting adjourned at 8:02 p.m. Respectfully submitted, Diana Shiplet Executive Assistant Minutes for the Conservation Commission December 16, 2015 Page 5 of 7 DRAFT RESOLUTION NO. A RESLOLUTION AUTHORIZING THE CITY OF ASHLAND TO SET ASIDE IN 2016 100 ACRES ON THE IMPERATRICE PROPERTY FOR THE CONSTRUCTION OF A POTENTIAL SOLAR(VOLTAIC) PARK BY A PUBLIC OR PRIVATE CONTRACTOR/INVESTORS FOR NO LESS THAN TEN YEARS. RECITALS: A. The City of Ashland is owner of the 864 acres identified as the Imperatrice Ranch Property. B. The City purchased the Property in 1996 for the purpose of using it or portions of it for land treatment of treated wastewater as a method to diminish elevated temperatures of effluent discharged from the WWTP into Ashland and Bear Creeks especially in May and October. C. The Comprehensive Sanitary Sewer Master Plan, 2012, paragraph 10.2.1, states the effluent can only be applied on 412 acres of the Property "Due to steep terrain and other limiting features (TID canal, wetland swale) portions of the Imperatrice site are not usable for irrigation. Limiting irrigation to slopes less than 20% and providing necessary buffer zones for the canal, swale and property lines provides a usable irrigation area of 412 acres for Class C effluent or 433 acres for Class B effluent..." D. CSSMP, CH2MHILL's memo of June 8, 2015 addresses their study results to date. The critical time frame is May and October for temperature mitigation. (Paragraph 5, third and fourth bullets) Their options for mitigation are consistent with the master plan. E. Property for a Solar Park would not interfere with the 412 or 433 acres identified in the master plan because a solar park can be located on t#e slopes 20% or greater. See Map, Exhibit 1. F. The City of Ashland must have a redundant power source in light of the threat of natural disasters such as earthquakes, tsunamis, and drought that can and will effect the entire state including our primary power supplier Bonneville Power. G. The City of Ashland must take measures to curtail its and the nation's carbon emissions. A solar farm on the Imperatrice Property would be an important contribution to getting Ashland and the Valley to zero net carbon emissions. H. Investors may be interested in what Ashland has to offer because California's SB 32 dramatically increases the of energy the state is required to derive from renewables to 50 percent, reduces petroleum use 50 percent,-and requires improved energy efficiency of buildings by 50 percent, all by the year 2030. The strongest market for renewables is in California. 1. President Obama - "Climate change is no longer some far-off problem. It is happening here. It is happening now," he warned the representatives of more than Minutes for the Conservation Commission December 16. 2015 Page 6 of '7 20 countries attending the Conference on Global Leadership in the Arctic: Cooperation, Innovation, Engagement and Resilience... "Any so-called leader who doesn't take this issue seriously or treats it like a joke is not fit to lead," he said. "On this issue, of all issues, there is such a thing as being too late, and that moment is almost upon us." THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. Provision for Renewable Electric Power Ashland will set aside on the Imperatrice Property 100 acres suitable for a potential solar farm for a period of 10 years following passage of the resolution. See Exhibit 1 for technically acceptable acreage for a solar farm. SECTION 2. Intention The intent of the resolution is for all terms and conditions to be worked with and through the City of Ashland Ad-Hoc Climate and Energy Plan Committee that is responsible for development of the City of Ashland Climate and Energy Plan. The purpose of this alignment is to ensure good communication between city staff, the City of Ashland Ad-Hoc Climate and Energy Plan Committee, and the citizens of Ashland. SECTION 3. Terms and Conditions a. Council appropriate $10,000 for staff to research and uncover all relevant title, environmental, geotechnical and inter connectivity information in City files that could be useful to any party seeking to evaluate the site for a potential solar farm. This information must be formatted and linked on a city web page with a link to it on the City home page. By no later than June 30, 2016 the City shall have completed posting the information above to a dedicated City web page with a link on the home page so that interested parties-can peruse the known, relevant information regarding the Imperatrice Property- b. The Conservation Commission recommends to the Ad Hoc Committee for the Climate and Energy Plan that the feasibility of a potential solar farm site on the Imperatrice Property by evaluated, as a high priority, as part of the development of an energy plan for the City of Ashland within the new climate and energy plan. SECTION 4. This resolution was duly PASSED and ADOPTED this day of, and takes effect upon signing by the Mayor. Minutes for the Conservation Commission December 16. 2015 Page 7 of 7 Barbara Christensen, City Recorder SIGNED and APPROVED this day of John Stromberg, Mayor Reviewed as to form: Dave Lohman, Ashland City Attorney CITY Of ASHLAND Council Communication February 2, 2016, Business Meeting Appointment to Airport Commission FROM: ashland.or.us Barbara Christensen, City Recorder, christeb na SUMMARY Confirm Mayor's appointment of George Schoen to the Airport Commission with a term to expire April 30, 2017. BACKGROUND AND POLICY IMPLICATIONS: This is confirmation by the City Council on the Mayor's appointment to the Airport Commission. COUNCIL GOALS SUPPORTED: Ashland Municipal Code (AMC) Chapter 2.13 FISCAL IMPLICATIONS: n/a STAFF RECOMMENDATION AND REQUESTED ACTION: Motion to approve appointment of George Schoen to the Airport Commission with a term to expire April 30, 2017. SUGGESTED MOTION: Motion to approve George Schoen to the Airport Commission with a term to expire April 30, 2017. ATTACHMENTS: Application Page I of 1 I`, 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 christebnashland.or.us. If you have any questions, please feel free to contact the City Recorder at 488-5307. Attach additional sheets if necessary. Name '6z'-06 /F- S, G ff o ~ Requesting to serve on:`iefoo~ (Commission/Committee) Address 577 , 517'41/1-/~ (012, C) Occupation 14I//'+- 0'-j Gl,'Idc,677,1 f- Phone: Home 98 Work Email geo!'S~ So oC.i euie'116d.l ?e Fax 1. Education Background / What schools have you attended? 01-44-444 Go//e What degrees do you hold? AS -AV14-77-y,/ 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? GUO*O ,A&/ F}- 04.7Jv~e-j A3 ~N A//0/0 Otis ~~/Z 310 t yr~~s Do you feel it would be advantageous for you to have further training in this field, such as attending conferences or seminars? Why? ~r, 3. Interests Why are you applying for this position? 4. Availability Are you available to attend special meetings, in addition to the regularly scheduled meetings? Do you prefer day or evening meetings? 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 46 /A qlz~ ~9,sry i~}(r~~U7=uJf v) #-Tivl✓ 6~Is41- V-1`4 G L C-- C9 rho u Lo z / T71 y U ups L~ 7"'_ fly y1 x'1'7".-i 4~4iVt Date Sig re CITY OF ASHLAND Council Communication February 2, 2016, Business Meeting Contingent approval of an airspace license for Plaza Condo Unit Owners Association, Inc. FROM: Dave Kanner, city administrator, dave.kanner@ashland.or.us SUMMARY Plaza Condo Unit Owners Association, Inc., owner of the building at 25 North Main Street on the plaza, wishes to perform seismic upgrades to its property and in the process add a balcony to the building. The project will require Historic Commission review and Planning Commission approval. Placing a balcony over a public right of way requires an airspace license from the City. Allan Sandler, on behalf of the Plaza Condo Unit Owners Association, is seeking assurance that the City will grant an airspace license before initiating the process of seeking planning approval. This license is presented for Council approval, but it will not be executed until or unless Sandler receives Planning and Building approval for the project. BACKGROUND AND POLICY IMPLICATIONS: Plaza Condo Unit Owners Association, Inc. (Allan Sandler), is the owner of the building on the downtown plaza at 25 North Main Street. (The building also houses businesses addressed as 17, 19, 21 and 23 North Main St.) Like many buildings on the plaza, it is seismically unsound and Sandler wishes to perform improvements to the property to bring it into conformance with current seismic codes. Because the seismic upgrade includes "moment frames" that will project out onto the public sidewalk and because the project includes a third-floor balcony that projects out over the public sidewalk, Council permission was required to merely allow the property owner to submit an application for land use approval. The Council gave its permission at the November 17, 2015, business meeting, but such permission does not constitute Council support for the project. In addition to and separate from the land use approvals, the project requires an airspace license allowing for the use of the airspace over the public right-of-way. A similar license was issued to Sandler in 1994 for a balcony at Martino's restaurant on E. Main St. Staff proposes to treat the airspace license as we would a permit for an awning. The proposed fee for the license is $655, which is what the city would charge for an awning permit. Council is asked to approve this airspace license with the proviso that it will not be executed unless Planning and Building approval is granted for the project. COUNCIL GOALS SUPPORTED: N/A Page 1 of 2 I CITY OF ASHLAND FISCAL IMPLICATIONS: Staff proposes to charge $655 for this airspace license if/when it is executed. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of this airspace license contingent on land use approvals. SUGGESTED MOTION: I move approval of an airspace license for Plaza Condo Unit Owners Association, Inc., and authorize the city administrator to execute the license only at such time as their seismic upgrade and balcony project has received all required land use approvals. ATTACHMENTS: Draft airspace license for 25 North Main St. Page 2 of 2 ~r, CITY OF ASHLAND -AIRSPACE LICENSE License made this day of , 2016, between the City of Ashland ("City"), and Plaza Condo Unit Owners Association, Inc., as Licensee; City and Licensee agree: 1. DESCRIPTION OF PREMISES: City permits Licensee to use the following described property ("the premises") on the terms and conditions stated below: See the attached Exhibit A. 2. TERM: This license shall begin on 2016, and continue until terminated as provided in paragraph 15. 3. PAYMENT: Licensee shall pay to City for this license the sum of $655.00. 4. PURPOSE: The premises shall not be used in any manner than for restaurant seating or human habitation nor used in any manner deemed by City to be a hazard or potential hazard to the public using the public sidewalk or right of way. Use and maintenance of the premises shall cause no interference with pedestrian or vehicular traffic on East Main Street or the adjacent public sidewalk or right of way. Licensee shall not use or allow the premises to be used for any unlawful purpose whatsoever. 4.1. Compliance with environmental laws. As used is this license, the term "hazardous material" means any hazardous or toxic substance, material, or waste, including, but not limited to, those substances, materials, and wastes listed in the United States Department of Transportation Hazardous Materials Table (49 C.F.R. § 172.101) or by the United States Environmental Protection Agency as hazardous substances (40 C.F.R. Part 302) and any amendments, ORS 466.567, 466.205, 466.640 and 468.790 and regulations of the Oregon State Department of Environmental Quality, petroleum products and their derivatives, and such other substances, materials and wastes as become regulated or subject to cleanup authority under any environmental laws. "Environmental laws" means those laws cited in this subparagraph. 4.1.1. Licensee's compliance with laws and permits. Licensee shall cause the premises and all operations conducted on the premises (including operations by any subtenants) to comply with all environmental laws. 4.1.2. Limitation on uses of hazardous materials. Licensee shall not use or allow any agents, contractors or subtenants to use the premises to generate, manufacture, refine, transport, treat, store, handle, recycle, release or dispose of any hazardous materials, other than at reasonably necessary for the operation of Licensee's activities as contemplated under this agreement. PAGE 1 of 4 - LICENSE 4.1.3. Lessor's Rights. Lessor shall have the right to conduct reasonable inspections and investigations of the premises and the operations conducted on the premises from time to time during normal business hours upon 48 hours notice unless an emergency requires less notice, and Licensee shall cooperate fully with Lessor during such inspections and investigations. 4.1.4. Indemnification. Licensee agrees to defend (with counsel approved by Lessor), fully indemnify, and hold entirely free and harmless Lessor from and against all claims, judgements, damages, penalties, fines, costs, liabilities, or losses (including, without limitation, diminution in value of the premises, damages for the loss or restriction on the use of rentable or usable space or of any amenity of the premises, damages arising from any adverse impact on marketing of space, sums paid in settlement of claims, attorneys' fees, consultant fees, and expert fees) which arise during or after the license term and which are imposed on, or paid by or asserted against Lessor by reason or on account of, or in connection with, or arising out of Licensee's generation, manufacture, use, transportation, refinement, treatment, storage, or disposal of hazardous materials, or any release of hazardous materials as a result of Licensee's use or activities, or of Licensee's agents, contractors, or subtenants. 5. INDEMNIFICATION: Licensee agrees to defend, indemnify and save City, its officers, employees and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, subrogations, or other damages resulting from injury to any person (including injury resulting in death,) or damage (including loss or destruction) to property, of whatsoever nature arising out of or incident to the performance of this agreement by Licensee (including but not limited to, Licensee's employees, agents, and other designated by Licensee to perform work of services attendant to this agreement). Licensee shall not be held responsible for damages caused by the negligence of City. 6. INSURANCE: Licensee shall, at its own expense, at all times during the term of this agreement, maintain in force a comprehensive general liability policy including coverage for contractual liability, bodily injury and property damage for obligations assumed under this Contract. The liability under each policy shall be a minimum of $1,000,000 per occurrence/$2,000,000 aggregate. Liability coverage shall be provided on an "occurrence" not "claims" basis. The City of Ashland, its officers, employees and agents shall be named as additional insureds. Certificates of insurance acceptable to the City shall be filed with City's Risk Manager prior to the commencement of any occupation of the premises by Licensee under this agreement. These certificates shall contain provision that coverages afforded under the policies cannot be canceled and restrictive modifications cannot be made until at least 30 days prior written notice has been given to City. A certificate which states merely that the issuing company "will endeavor to mail" written notice Is unacceptable. 7. IMPROVEMENTS. Except for the balcony to be constructed and attached to the building at 25 North Main Street, Ashland, Oregon, no improvements shall be placed in or on the premises, and no alterations shall be made on the premises without the prior PAGE 2 of 4 - LICENSE written consent of City. All improvements made by Licenses on the premises shall be and remain the property of Licensee. 8. TAXES AND UTILITIES. Licensee shall be responsible for all taxes and assessments, if any, on all real and personal property and improvements on the premises, including real property belonging to City. Licensee shall pay for all utility services furnished to the premises. 9. PERMITS. Licensee shall secure all necessary permits and licenses required in connection with operations on the premises and shall comply with all federal, state, and local statutes, ordinances, and regulations that may concern, in any way, Licensee's use of the premises. 10. ASSIGNMENT. The provisions of this license and all of its obligations and rights shall bind any assignee or successor of Licensee, and any purchaser or transferee of any interest of Licensee's in the building located at 58 East Main, Ashland, Oregon more specifically described as: See the attached Exhibit B. Licensee shall execute and acknowledge a memorandum of this License as it affects the property described in Exhibit B in a form suitable for recording, and City may record the memorandum. 11. SIGNS. Any sign erected or placed on the premises shall comply with the Sign Ordinance of the City of Ashland. 12. MAINTENANCE. Licensee shall, at its sole expense, keep and maintain the premises at all times in an orderly, clean, and safe condition. 13. ACCESS. There shall be no access from the premises to the public sidewalk or right of way unless necessitated by an emergency requiring immediate access from the premises to the sidewalk. 14. RIGHT OF ENTRY. City specifically reserves the right to enter and occupy the premises upon failure of Licensee to comply with any provisions of this license. City also reserves the right to enter the premises for purposes of inspection and to determine whether Licensee is complying with the provisions of this agreement and to perform acts necessary or proper for the protection, preservation, maintenance, reconstruction, and operation of the public right-of-way and sidewalk. 15. TERMINATION. In the event of breach of any of the license terms, City shall have the right to immediately terminate this license, to re-enter and repossess the premises, and to hold the same as though this license had never been made or issued. In addition, this license may terminate as to all or part of the premises when needed for public purposes, or when the City determines that it is in the public's best interest, upon PAGE 3 of 4 - LICENSE giving of a 180-day written notice to Licensee of its intent to terminate same. In the event of such termination, Licensee waives its rights to make a claim for any losses or damages suffered thereby. 15.1. Removal of improvements. In the event of termination, regardless of how effected, including termination for need or failure to comply with any provision of this license, Licensee shall, by the date of the termination, peaceably and quietly leave, vacate completely and surrender the premises, removing those improvements and fixtures placed or made by Licensee. If any improvements or fixtures are not removed from the premises and the premises are not completely vacated by the termination date, City may proceed to remove the same, and Licensee shall pay City, upon demand, the reasonable cost to City of such removal. 15.2. Removal of improvements by Licensee. At Licensee's expense, Licensee at any time may remove improvements and fixtures placed or made on the premises by Licensee. Upon such removal and surrender of the premises, City shall cooperate in providing Licensee with any instruments that Licensee reasonably may require for the purpose of removing from the public record any encumbrance to Licensee's property described in Exhibit B attributable to this License pursuant to paragraph 10. 16. WAIVER. Time is of the essence of every provision of this license. Failure of City to object to the violation of any provision of this license shall not be deemed a waiver by City of a subsequent similar breach or of City's right to demand strict performance by Licensee of the provision hereof. Date: Signed: Allan Sandler for Plaza Condo Unit Owners Association, Inc., Licensee License granted this day of , 2016, for the above named Permittee to use the premises on the terms specified above. Dave Kanner, City Administrator City of Ashland PAGE 4 of 4 - LICENSE CITY OF -AS LA D Council Communication February 2, 2016, Business Meeting Plastic Bag Ban - One Year Review FROM: Adam Hanks, Management Analyst, Administration adam@ashland.or.us SUMMARY Council adopted an ordinance regulating the use of plastic bags in November 2014. A one-year review by Council was specified in the ordinance. The review provides the Council with an opportunity to evaluate the initial success of the ordinance, address issues from the public and determine whether alterations may be beneficial or if the ordinance is working as intended. BACKGROUND AND POLICY IMPLICATIONS: In response to an advocacy group request in 2013 for the City of Ashland to implement a plastic bag ban ordinance, the City Council requested that the Conservation Commission research and make a recommendation on the merits and mechanics of such an ordinance. The Conservation Commission spent several months reviewing other ordinances in Oregon and beyond and provided the Council with a recommendation on November 18, 2013, to develop an ordinance generally consistent with what had been recently implemented in the City of Eugene. The ordinance brought forward to the Council in April 2014 for deliberation and approval contained key definitions, a ban on single use plastic bags, a requirement for the use of recycled content paper bags, and a 25-cent fee charged to customers for the use of paper bags with an exemption for certain low income categories. The ordinance also included a delayed implementation date to provide approximately six months for the business community to prepare for the required changes. Through testimony from the Conservation Commission as well as the community, the Council amended the proposed ordinance, reducing the paper bag fee from 25 cents to 10 cents and approved the ordinance with a 4-3 vote. Implementation In preparation for the implementation date of November 6, 2014, City staff and members of the Conservation Commission conducted a variety of outreach efforts to ensure that the business community was aware of the upcoming regulations. This included: • Video interviews with local TV media • Commentary article in local print news media (Mail Tribune, Daily Tidings, Sneak Preview) • Paid advertising in the Sneak Preview • Live radio interview on Jefferson Exchange Page 1 of 5 CITY OF -AH LAN D • City website page devoted to the topic with both customer and retailer FAQ's, PDF posters for business use, info on free bag program for low income residents, educational material, policy and process background materials (including full ordinance) • City Facebook and Twitter posting • Communication with Chamber of Commerce for member distribution • Site visits with several grocers and any retailers that inquired One Year Review To assist the Council in its one-year review, City staff attempted to collect feedback from the three primacy groups impacted by the ordinance; retailers, grocers and customers. For the retailer group, City staff partnered with the Southern Oregon University Applied Business Research Class, under the direction of Professor Donna Lane, Ph. D, to conduct a retail business survey. The survey was sent to all businesses located in Ashland categorized as retail businesses in the City's business license database, which totaled 181. Thirty-nine responses were received and the results tabulated by the SOU student research staff and summarized in a final report for the Council's review and consideration. The SOU team, as part of their class curriculum and beyond the scope of the City's request, also conducted some research and review of related literature and other similar ordinances in select communities in Oregon, Washington and California and provided an economic analysis section with conclusions and recommendations based on their review of the survey responses, including potential options to address some of the issues raised in the survey. SOU Retail Business Survey Results (complete report link at end of document) 1. How satisfied are you with the current plastic bag 2 How satisfied are you with the current Ill cent charge ordinance? (1= very unsatisfied. 5_ very satisfied) for paper bags? (1= very unsatisfied, 5 very satisfied) ®x ¢:1= If3 Cg'i.+%. III'Ja c?T 6". 2 ■4 O nit- ELLnSimsn11 n- M 3 IS, 6-0 3. How much does your business spend on bag orders 4• Which of the three choices below would you be in since the ordinance was intpkirwnted? savor of in reeds to the paper bag fee? C4orpea 4-e te..nes 1,4% T9 r -r cents. Kam &e M 2 13 ~I'ATd1i: f 417% 2 cest&arae t_j 11% tes E 'e Sarin 1-1 17 AF2i EMIN14-4- 3 re tff Eert 22 a +s DP*.C@ Sw 4th' Tc4FJ 30 11--c% Page 2 of s 11VAW&A CITY OF -AS H LA D 5. YAM kupad Im ft plastic bag o an 6. What utrpact ttas ttre plastic bag ouftiiarme had an y0iff safes? your paper bag usage? tcreas~ r , c u P t 15-W ES t .t E25 i s Dfueese rc, W w Cr. salt`s nrawbag ~.rlk~'!'a8f': ~ iPasn t t F'F 7. If you had to make an ass ,foam satisfied are your custonws with the plastic current bag ordbumme? very unsatisfied, 5 = very satisfied a- . Li 0 A- Grocer Feedback City staff attempted to obtain feedback directly from the grocers, as their businesses typically involve higher numbers of product sales per transaction, increasing the likelihood of customers requiring bags to carry purchases out of the store. Three respondents were obtained from the six that were personally visited by staff. All three responses indicated a significant reduction in paper bag purchases and use, indicating the ten cent fee achieved its purpose of assisting to transition customers to reusable bags. All three respondents also indicated an initial increase in sales of reusable bags, but that number has tapered back over time. Customer/Resident Feedback City staff posted a survey similar to the retail business survey on the Open City Hall City website tool to solicit feedback from the community. Summarized responses from the 49 that submitted responses and comments are provided below. i) f low satisfied are you with the current plastic bag ordinance? (I =Very Unsatisfied. 5- Very satisfied) Average = 4.37 2) How satisfied are you with the current 10 cent charge for paper bags? (I= very unsatisfied, 5- very satisfied) Average = 3.98 3) Which of the three choices below would you be in favor of in regards to the paper bag fee? Charge a fee higher than 10 cents = 22.9% Keep the ten cent charge the same = 54.2% Eliminate the ten cent fee = 22.9% Page 3 of '5 CITY OF -AS I LAN D 4) The goal of the program was to eliminate single use plastic bags and encourage customers to bring in their own bags. Which one of the following statements seems most accurate as you observe fellow customers shopping in Ashland? More people are bringing their own bags = 70.2% More people are carrying items out of the store without bags = 19.1% More people are buying paper bags = 4.3°/, 45 of the 49 responders to the Open City Fall survey also submitted open ended comments about the plastic bag ordinance. A link to the full report and comments is provided in the attachments section. Ongoing Education and Outreach City staff have been in regular communication with the Chamber of Commerce and inquiring businesses to attempt to address issues relating to the implementation of the ordinance. This effort included an update to the original informational signage that was provided at the initial implementation. The original materials were adapted from materials used in Eugene and may not have fit the needs of the non-grocery retail business sector. The new materials are currently available for distribution as small postcard signs and A-frame self-supporting signs for payment counters to assist businesses in communicating the ordinance requirements to their customers. COUNCIL GOALS SUPPORTED: 29. Promote conservation as a long-term strategy to protect the environment and public utility needs (waste prevention and reduction specifically) FISCAL IMPLICATIONS: Ongoing program costs to the City include occasional staff time in Administration for questions regarding the implementation of the ordinance, development and distribution of outreach/educational materials along with limited expenses for graphic design and printing of materials. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff has no specific recommendations, however, the plastic bag ban one year review was an item on a recent Conservation Commission meeting agenda that resulted in a formal recommendation from the Commission to the Council. After discussion of the potential merits of an increase of the paper bag fee from 10 cents to 25 cents as originally recommended, the Commission voted to recommend leaving the fee at 10 cents and recommend to Council that code compliance efforts relating to the bag ban and specifically the requirements for businesses to collect the 10 cent fee be of higher priority in the coming months. SUGGESTED MOTION: N/A ATTACHMENTS: Bring Your Own Bag (BYOB) Council Meeting Packet Materials - April 15, 2014 Page 4 of '5 I r, CITY OF ASHLAND Links 1) Retail Business Survey - SOU Applied Business Research Team - Fall 2015 «-\Nti-.ashland.or.us/files/BaUBan RetailSurx ev SOU 2) Community Survey Response Report - Open City Hall Dec/Jan 2016 xN7xiw.ashland.or.us/files/OpenCitvHall BagBan 3) Complete BYOB Process History NNTxti-\N°.ashland.or.us/files/BYOB Council.pdf Page 5 of 5 I`, CITY OF ASHLAND Council Communication April 15, 2014, Business Meeting Bring Your Own Bag (BYOB) An Ordinance prohibiting the distribution of certain single use plastic bags FROM: Adam Hanks, Management Analyst, adam@ashland.onus SUMMARY Per Council direction from its November 18, 2013 Study Session, a draft ordinance has been developed for Council consideration that would prohibit the distribution of single use plastic bags by retail businesses in Ashland and require the distribution of paper bags to contain a minimum recycled content. A fee is also proposed to be imposed for the distribution of paper bags as a behavioral "nudge" for customers to "Bring Your Own Bag" (BYOB). The ordinance is drafted with a proposed six month delay in the enforcement of the code to provide businesses with adequate time to deplete existing plastic and non qualifying paper bag stocks and to develop alternative business practices that meet or exceed the ordinance. BACKGROUND AND POLICY IMPLICATIONS: At Council's request, the Conservation Commission completed a review of the request for Ashland to create regulations banning the use of single use plastic bags. The memo from the Commission provided to Council at the November 18, 2013 Study Session (attached) summarizes the research and deliberations by the Commission and recommended that Council move forward in the development of an ordinance regulating the allowable uses of single use plastic bags in conjunction with a strong educational outreach program with the objective of significantly reducing the volume of single use plastic bags entering the waste stream and negatively impacting the environment. History The issue of banning or otherwise regulating single use plastic bags has come before many Oregon cities in the past with varying regulatory strategies and implementation success. Concerns were raised by the grocery and retail business groups regarding the difficulties of operating businesses throughout Oregon if each City had its own set of regulations and restrictions for the use of single use plastic bags. In both 2010 and 2011, Senate Bills were introduced (SB 1009 in 2010 and SB 536 in 2011) that would create statewide regulations for single use plastic bags. Neither bill was ultimately approved into law so many individual municipalities restarted community dialogues on local regulations. Conservation Commission Review and Recommendation Upon its referral to the Conservation Commission, the Commission established a sub-committee to focus their research efforts and draft recommendations. The research included similar ordinance development processes for the regulation of single use plastic bags in other municipalities in Oregon with a focus on the recently enacted ordinance and program in the City of Eugene. Page 1 of 4 11F4 LM, CITY OF ASHLAND The Commission recognized regulations on the distribution of carry out bags from retail businesses is a very focused item to address, but the consensus of the Commission was that single use plastic bags function as a very visible symbol of a short-term convenience based, disposable item that almost immediately becomes a part of the waste stream. To compound the matter, single use plastic bags are often cited by the recycling industry as particularly problematic as they jam the materials sorting machines at regional recycling facilities. Aside from the tangible benefits of phasing out the use of this specific product, the regulation can function as a community awareness tool promoting the use of reusable products in the daily lives of Ashland residents and could also function as a launching pad for the development of a more comprehensive local waste prevention and reduction strategy that aligns with the regional wasteshed and state waste prevention and reduction strategies, as is being discussed by the recently appointed Ad- Hoc Recycle Center Committee. The draft ordinance contains the code elements suggested by the Commission. Additionally, as noted by the Council and agreed upon by the Commission, a strong education/outreach element is a vital component to the success of the proposed regulation. The sub-committee has developed an education/outreach outline and continues to work with staff to identify, define and implement the specific materials, actions and activities in the six months between Council approval of the ordinance and the code enactment date. Policy Objective The objective of the ordinance and corresponding education and outreach is to substantially reduce the volume of end user consumption of single use plastic carry out bags and transition to the use of reusable bags as the standard practice. The Commission recommends the adoption of a 25 cent customer fee for the distribution and use of a recyclable paper bag to promote behavior modification towards the use of customer provided reusable bags rather than just a movement from single use plastic bags to paper bags that, while somewhat reusable, most often aren't and have their own set of environmental issues. Key Regulatory Elements 1) Definition of a carryout bag - Key in understanding the threshold of what is and isn't regulated by the draft ordinance 2) Definition of a Recyclable paper bag - If retailers want to continue providing paper bags, the paper bags need to meet this minimum specification 3) Definition of single use plastic carry out bag- This defines what will be prohibited from distributing to customer at point of sale (note the use of the term carry out in this definition to again reiterate the threshold of what types of bags are and aren't regulated by this ordinance) 4) Cost pass through - This requires that retailers charge a fee whenever they provide a recyclable paper bag to the customer. 5) Administrative exemption - Allows a business to apply for a one time exemption of up to one year based on an undue hardship or practical difficulty. 6) Effective date of ordinance - The ordinance will be in effect six months after the ordinance is approved and signed. Page 2 of 4 ~I, CITY OF ASHLAND Ordinance Impacts Retail Business Pro • Cost savings from elimination of single use plastic bag inventory • Revenue stream to offset increased per bag cost to meet minimum recycled content specifications for paper bags * • Additional promotional opportunities and revenue from reusable bag sales • Level playing field - All retail businesses operating under the same rules/standards for point of sale bags Con • Additional communication and time required of staff to explain the rules/standards • Potential point of sale software programming costs to address cost pass through fee for paper bags • Record keeping maintenance costs associated with the cost pass through fee *The Commission proposes that the funds collected from customer fees for paper bag use be retained by the retailer to off-set the costs of providing the more expensive paper bags rather than the less expensive plastic bags that would no longer be allowed. A key objective of the program is to reduce the use of single use bags regardless of their type so it is anticipated that over time, the revenue off-set created by the paper bag fee would decline over time. Customers/End users Pro • Elimination of a potential source of waste or recycle material to store/dispose of Con • Fee charged for forgetting to bring your own bag • Initial cost to purchase needed inventory of reusable bags FISCAL IMPLICATIONS: City Program Costs Initial program costs will include staff time for initial education/outreach efforts to local retailers. This would include development of program FAQ's, poster/display templates for businesses to utilize in their customer communication efforts to be distributed from the City's website and also as part of on- site business visits and several scheduled business centric informational sessions. The City of Eugene has offered the free use of their program material templates with approval to modify as desired, lowering costs and leveraging an already in place and successful campaign. Additionally, to emphasize the Commission's desire for the program to be a Bring Your Own Bag (BYOB) ordinance rather than a plastic bag ban, an element of the education/outreach includes the creation of BYOB program branded reusable bags. The bags would provide another outlet for education/outreach and also be made available for free for qualifying residents to mitigate the impacts of the ordinance on lower income shoppers in the community. The Commission has been developing and evaluating different models for partnership/sponsorship of the costs involved with the bag purchase, branding graphics and distribution and has indicated their desire to remain involved in bring the concept to fruition. Page 3 of 4 CITY OF ASHLAND Modifying existing City of Eugene program materials and using electronic files for download from the City website significantly reduce program operating costs, estimated at $1,000 or less. The variable program cost is dependent on the final solution for the community oriented BYOB reusable bag concept. Partnering opportunities that incorporate the ability for business promotions and advertising could address the entire hard cost associated with the bag purchase and graphics and could reduce city costs to staff time for coordination of partners and communication efforts regarding the BYOB distribution. STAFF RECOMMENDATION AND REQUESTED ACTION: Given that many of Ashland's larger grocery outlets have already proactively moved away from the use of single use plastic bags and have also transitioned to recycled content paper bags, the proposed ordinance concept has actually been tested and accepted within the community. Staff recommends that Council adopt the ordinance with any needed adjustments and direct staff to begin the outreach efforts to the business community to ensure a successful implementation. SUGGESTED MOTION: 1. I move first reading by title only of an ordinance adopting a prohibition on the distribution of single use plastic bags. 2. I further move to direct staff to begin appropriate education and outreach efforts to both the business community and residents. ATTACHMENTS: Draft Ordinance - Prohibition on the Distribution of Single Use Plastic Bags Conservation Commission BYOB Recommendation Memo - 10/23/13 BYOB Ordinance Work plan and Timeline City of Eugene - Sample Educational Materials LINKS: November 18, 2013 Council Study Session Minutes littp://ashland.or.us/Agendas.asp?Displa_y=Minutes&AMID=5506 November 18, 2013 Council Study Session Meeting Packet littp://www.asliland.or.us/Page.asp?NavID=15930 Open City Hall Public Comments http://www.ashland.or.us/Page.asp?NaviD=13461#peak democracy Note: Complete report of comments to be provided to Council at meeting Page 4 of 4 ~L, CITY OF ASHLAND Council Communication February 2, 2016, Business Meeting Update On Issues Involving the Vinyl Club and the Granite Tap House FROM: Tighe O'Meara, Police Chief, Ashland Police Department, ti#"he.omearaL&ashland.or.us Margueritte Hickman, Division Commander, Ashland Fire and Rescue, margueritte.hickman@ashland.or.us SUMMARY This is a Council-requested update regarding problems at Granite Tap House and the Vinyl Club. These establishments were flagged for follow-up when their liquor licenses were renewed six months ago. Granite Tap House has made improvements with regard to its emergency egress issue that caused it to be flagged. The number of complaints regarding excessive noise at the Vinyl Club has declined substantially and the number of disorderly conduct complaints dropped to zero. BACKGROUND AND POLICY IMPLICATIONS: Six months ago, all liquor licenses in Ashland were reviewed for renewal. Two of the licenses received added scrutiny due to complaints from neighbors and because of calls for service at the locations. The two locations were the Vinyl Club and the Granite Tap House. More specifically, the Granite Tap House was scrutinized due to accessibility issues during emergency situations, and the Vinyl Club was scrutinized due to on-going complaints of excessive noise, fighting and generally disorderly behavior by neighbors. The Council decided to endorse the renewal of the liquor licenses, but also advised the APD to work with the respective owners to mitigate future problems. Update on the Granite Tap House: The primary problem at the Granite Tap House had been that on two occasions, APD needed to access the business for emergency situations and could not due to a locked door. The owners have since worked with the Fire Marshall and have installed the hardware needed to allow this access. There have been limited instances of the door still being found locked, but there is progress in that the hardware has been installed and the owners appear to be eager to work with the APD to ensure compliance. Update on the Vinyl Club: The primary complaints involving the Vinyl Club have been of excessive noise and generally poor behavior by patrons on Will Dodge Way. In the six months prior to the renewal of its liquor license, there were 20 complaints of excessive noise. In the last six months this had dropped to ten. Also, in the six months prior to the renewal, there were two complaints of disorderly conduct (DOC) and one of harassment (minor assault) connected to the Vinyl Club. In the last six months there have no complaints of DOC and two complaints of assaultive type behavior. It should be noted that the reports from APD's midnight teams, that most often deal with Vinyl Club, have stated that business at the location seems to have fallen off considerably and that this decline in business is likely responsible for Page 1 of 2 CITY OF ASHLAND the decrease in calls for service. Whether or not the business staff has gone out of its way to adjust its practices to mitigate these problems is questionable at best. COUNCIL GOALS SUPPORTED: NA FISCAL IMPLICATIONS: NA STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends that the Council take no action at this time. Staff further recommends that APD be allowed to continue to monitor the situation and report any future problems when the liquor licenses come up for renewal again. SUGGESTED MOTION: NA ATTACHMENTS: None Page 2 of 2 CITY OF ASHLAND Council Communication February 2, 2016, Business Meeting First Reading of An Ordinance Establishing a Tax on the Sale of Marijuana and Marijuana-infused products in the City of Ashland and Referring Said Tax to the Voters of Ashland in the November 8, 2016, General Election FROM: Dave Kanner, city administrator, dave.kanner@ashland.or.us SUMMARY State law allows cities and counties to charge a local sales tax of up to 3% on the sale of marijuana and marijuana infused products at OLCC-licensed retail outlets within their jurisdiction. This ordinance imposes such a tax and refers the ordinance to the voters of Ashland in the November 8, 2016, general election, as required by state law. BACKGROUND AND POLICY IMPLICATIONS: Oregon voters legalized the sale of recreational marijuana via ballot measure 91 in the November 2014 election. Even prior to the election, the City of Ashland had enacted an ordinance imposing a tax on the sale of recreational marijuana in the City with the hope and expectation that the tax would be grandfathered in if the measure passed, even though the measure prohibited the adoption of such taxes. However, the 2015 session of the Oregon Legislature adopted house Bill 3400 to create the statutes that enact the ballot measure. That legislation explicitly precluded a local tax such as Ashland's. Subsequent legislation, HB 2041, allows cities and counties to impose a local sales tax on recreational marijuana in an amount not to exceed 3%, providing that such a tax is approved by local voters in a general election. The ordinance approved by the Council in the summer of 2014 authorizes such a tax and stipulates that the rate of the tax will be approved by Council resolution. The ordinance now before the Council simply amends the existing ordinance to stipulate that the tax rate will be 3%. The ordinance also removes language from our existing code regarding medical marijuana., This language is unnecessary inasmuch as the Council removed from Ordinance No. 3103 (which imposed the tax) the tax on medical marijuana that was in the original version of the ordinance. Finally, the ordinance contains a referral clause so it does not become effective unless approved by Ashland voters in the November 2016 general election. A resolution to adopt the ballot language and effect the referral will be brought to the Council at a future meeting. COUNCIL GOALS SUPPORTED: N/A FISCAL IMPLICATIONS: It is unknown and difficult to determine how much might be raised by a 3% tax on retail marijuana Page 1 of 2 Ir, CITY OF ASHLAND sales, since it is nearly impossible to predict what prices will be charged and what volume will be sold in Ashland. A straight-line, population-based extrapolation of Legislative Revenue Office estimates for state marijuana tax collection in FY 2018 would indicate that a 3% sales tax in Ashland could raise $20,000 to $30,000 annually. (The LRO also postulates that tourism could have a significant effect on marijuana revenues, which could be especially true in Ashland, with its tourism-based economy.) Again, given the large number of unknowable variables, these numbers should not be relied upon for fiscal planning purposes. We will not know how much could be raised by a marijuana tax until/unless the City starts collecting it. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of the marijuana taxation ordinance. SUGGESTED MOTION: I move approval on first reading by title only of an ordinance establishing a tax on the sale of marijuana and marijuana-infused products in the City of Ashland and referring said tax to the voters of Ashland in the November 8, 2016 general election, and moving the ordinance to second reading. ATTACHMENTS: Ordinance Page 2 of 2 ORDINANCE NO. AN ORDINANCE ESTABLISHING A TAX ON THE SALE OF MARIJUANA AND MARIJUANA-INFUSED PRODUCTS IN THE CITY OF ASHLAND AND REFERRING SAID TAX TO THE VOTERS OF ASHLAND IN THE NOVEMBER 8, 2016 GENERAL ELECTION Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined thirou and additions are bold underlined. WHEREAS, Article 2, Section 1 of the Ashland City Charter provides: Powers of the City. The City shall have all powers which the constitutions, statutes and common law of the United States and this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, the City desires to tax the retail sale of marijuana and marijuana-infused products within the City. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Title 4 Revenue and Finance of the Ashland Municipal Code, "Tax on Sale of Marijuana and Marijuana Infused Products," is hereby amended as follows: Section 4.38.010 Purpose For the purposes of this Chapter, every person who sells marijuana, ffiedieft! marijuana or marijuana-infused products under a license granted by the Oreizon Liquor Control Commission for such purpose in the City of Ashland is exercising a taxable privilege. The purpose of this Chapter is to impose a tax upon the retail sale of marijuana, m-ed-ieal tn~ntr, and marijuana-infused products. Section 4.38.020 Definitions When not clearly otherwise indicated by the context, the following words and phrases as used in this chapter shall have the following meanings: A. "Director" means the Director of Finance for the City of Ashland or his/her designee. B. "Gross Taxable Sales" means the total amount received in money, credits, property or other consideration from sales of marijuana, and marijuana-infused products that is subject to the tax imposed by this chapter. C. "Marijuana" means all parts of the plant of the Cannabis family Moraceae, whether growing or not; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its resin, as may be Ordinance No. Page 1 of 7 defined by Oregon Revised Statutes as they currently exist or may from time to time be amended. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted there from), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. D. "Oregon Medieal Alar-ijuana Program" means the offiee within the Oiregon Health _475.300 through , the ED."Person" means natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business, trust, organization, or any group or combination acting as a unit, including the United States of America, the State of Oregon and any political subdivision thereof, or the manager, lessee, agent, servant, officer or employee of any of them. FE."Purchase or Sale" means the acquisition or furnishing for consideration by any person of marijuana within the City. attending physieian with a debilitating medien! eondition and for- whom the us Oregon Health Author-it" 14F."Retail sale" and "retail selling" means the any transfers of goods or se exehange f6f any valuable e si tion exchange, 14ift or barter of a marijuana item by any person to a consumer. 1G. "Seller" means any person who is required to be licensed or has been licensed by the State-of Oregon Liquor Control Commission to provide marijuana or marijuana- infused products to purchasers for money, credit, property or other consideration. dH."Tax" means either the tax payable by the seller or the aggregate amount of taxes due from a seller during the period for which the seller is required to report collections under this chapter. M. "Taxpayer" means any person obligated to account to the Finance Director for taxes collected or to be collected, or from whom a tax is due, under the terms of this chapter. Section 4.38.030 Levy of Tax A. There is hereby levied and shall be paid a tax by every seller exercising the taxable privilege of retail selling marijuana and marijuana-infused products as defined in this chapter. B. The amount of tax levied shall be established by a City Couneil resolution is as follows: 1) Three percent (3%) of the gross sale amount paid to the seller of marijuana and marijuana-infused products by individuals who purchase marijuana and marijuana-infused products from the seller. Section 4.38.040 Deductions The following deductions shall be allowed against sales received by the seller providing marijuana: Ordinance No. Page 2 of 7 A. Refunds of sales actually returned to any purchaser; B. Any adjustments in sales which amount to a refund to a purchaser, providing such adjustment pertains to the actual sale of marijuana or marijuana-infused products and does not include any adjustments for other services furnished by a seller. Section 4.38.050 Seller Responsible for Payment of Tax A. Every seller shall, on or before the last day of the month following the end of each calendar quarter (in the months of April, July, October and January) make a return to the Director, on forms provided by the City, specifying the total sales subject to this chapter and the amount of tax collected under this chapter. The seller may request or the Director may establish shorter reporting periods for any seller if the seller or Director deems it necessary in order to insure collection of the tax and the Director may require further information in the return relevant to payment of the tax. A return shall not be considered filed until it is actually received by the Director. B. At the time the return is filed, the full amount of the tax collected shall be remitted to the Director. Payments received by the Director for application against existing liabilities will be credited toward the period designated by the taxpayer under conditions that are not prejudicial to the interest of the City. A condition considered prejudicial is the imminent expiration of the statute of limitations for a period or periods. C. Non-designated payments shall be applied in the order of the oldest liability first, with the payment credited first toward any accrued penalty, then to interest, then to the underlying tax until the payment is exhausted. Crediting of a payment toward a specific reporting period will be first applied against any accrued penalty, then to interest, then to the underlying tax. If the Director, in his or her sole discretion, determines that an alternative order of payment application would be in the best interest of the City in a particular tax or factual situation, the Director may order such a change. The Director may establish shorter reporting periods for any seller if the Director deems it necessary in order to insure collection of the tax. The Director also may require additional information in the return relevant to payment of the liability. When a shorter return period is required, penalties and interest shall be computed according to the shorter return period. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by sellers pursuant to this chapter shall be held in trust for the account of the City until payment is made to the Director. A separate trust bank account is not required in order to comply with this provision. D. Every seller required to remit the tax imposed in this chapter shall be entitled to retain five percent (5%) of all taxes due to defray the costs of bookkeeping and remittance. E. Every seller must keep and preserve in an accounting format established by the Director records of all sales made by the dispensary and such other books or accounts as may be required by the Director. Every seller must keep and preserve for a period of three (3) years all such books, invoices and other records. The Director shall have the right to inspect all such records at all reasonable times. Section 4.38.060 Penalties and Interest A. Any seller who fails to remit any portion of any tax imposed by this chapter within the time required shall pay a penalty of ten percent (10%) of the amount of the tax, in addition to the amount of the tax. Ordinance No. Page 3 of 7 B. Any seller who fails to remit any delinquent remittance on or before a period of 60 days following the date on which the remittance first became delinquent, shall pay a second delinquency penalty of ten percent (10%) of the amount of the tax in addition to the amount of the tax and the penalty first imposed. C. If the Director determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to the penalties stated in subparagraphs A and B of this section. D. In addition to the penalties imposed, any seller who fails to remit any tax imposed by this chapter shall pay interest at the rate of one percent (1%) per month or traction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. E. Every penalty imposed, and such interest as accrues under the provisions of this section, shall become a part of the tax required to be paid. F. Notwithstanding subsection AMC 434.020.C, all sums collected pursuant to the penalty provisions in paragraphs A and C of this section shall be distributed to the City of Ashland Central Service Fund to offset the costs of auditing and enforcement of this tax. G. Waiver of Penalties. Penalties and interest for certain late tax payments may be waived pursuant to AMC 2.28.045D. Section 4.38.070 Failure to Report and Remit Tax - Determination of Tax by Director If any seller should fail to make, within the time provided in this chapter, any report of the tax required by this chapter, the Director shall proceed in such manner as deemed best to obtain facts and information on which to base the estimate of tax due. As soon as the Director shall procure such facts and information as is able to be obtained, upon which to base the assessment of any tax imposed by this chapter and payable by any seller, the Director shall proceed to determine and assess against such seller the tax, interest and penalties provided for by this chapter. In case such determination is made, the Director shall give a notice of the amount so assessed by having it served personally or by depositing it in the United States mail, postage prepaid, addressed to the seller so assessed at the last known place of address. Such seller may make an appeal of such determination as provided in section 4.34.080. If no appeal is filed, the Director's determination is final and the amount thereby is immediately due and payable. Section 4.38.080 Appeal Any seller aggrieved by any decision of the Director with respect to the amount of such tax, interest and penalties, if any, may appeal pursuant to the Administrative Appeals Process in AMC 2.30.020, except that the appeal shall be filed within 30 days of the serving or mailing of the determination of tax due. The hearings officer shall hear and consider any records and evidence presented bearing upon the Director's determination of amount due, and make findings affirming, reversing or modifying the determination. The findings of the hearings officer shall be final and conclusive, and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. Ordinance No. Page 4 of 7 Section 4.38.090 Refunds A. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once, or has been erroneously collected or received by the City under this chapter, it may be refunded as provided in subparagraph B of this section, provided a claim in writing, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director within one year of the date of payment. The claim shall be on forms furnished by the Director. B. The Director shall have 20 calendar days from the date of receipt of a claim to review the claim and make a determination in writing as to the validity of the claim. The Director shall notify the claimant in writing of the Director's determination. Such notice shall be mailed to the address provided by claimant on the claim form. In the event a claim is determined by the Director to be a valid claim, in a manner prescribed by the Director a seller may claim a refund, or take as credit against taxes collected and remitted, the amount overpaid, paid more than once or erroneously collected or received. The seller shall notify Director of claimant's choice no later than 15 days following the date Director mailed the determination. In the event claimant has not notified the Director of claimant's choice within the 15 day period and the seller is still in business, a credit will be granted against the tax liability for the next reporting period. If the seller is no longer in business, a refund check will be mailed to claimant at the address provided in the claim form. C. No refund shall be paid under the provisions of this section unless the claimant established the right by written records showing entitlement to such refund and the Director acknowledged the validity of the claim. SECTION 4.38.100 Actions to Collect Any tax required to be paid by any seller under the provisions of this chapter shall be deemed a debt owed by the seller to the City. Any such tax collected by a seller which has not been paid to the City shall be deemed a debt owed by the seller to the City. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City of Ashland for the recovery of such amount. In lieu of filing an action for the recovery, the City of Ashland, when taxes due are more than 30 days delinquent, can submit any outstanding tax to a collection agency. So long as the City of Ashland has complied with the provisions set forth in ORS 697.105, in the event the City turns over a delinquent tax account to a collection agency, it may add to the amount owing an amount equal to the collection agency fees, not to exceed the greater of fifty dollars ($50.00) or fifty percent (50%) of the outstanding tax, penalties and interest owing. Section 4.38.110 Violation Infractions A. All violations of this chapter are punishable as set forth in AMC 1.08.020. It is a violation of this chapter for any seller or other person to: 1) Fail or refuse to comply as required herein; 2) Fail or refuse to furnish any return required to be made; 3) Fail or refuse to permit inspection of records; 4) Fail or refuse to furnish a supplemental return or other data required by the Director; 5) Render a false or fraudulent return or claim; or 6) Fail, refuse or neglect to remit the tax to the city by the due date. Ordinance No. Page 5 of 7 B. Violation of subsections 1, 2, 3, 4 and 6 shall be considered a Class I violation. Filing a false or fraudulent return shall be considered a Class C misdemeanor, subject to AMC 1.08. The remedies provided by this section are not exclusive and shall not prevent the City from exercising any other remedy available under the law, nor shall the provisions of this ordinance prohibit or restrict the City or other appropriate prosecutor from pursuing criminal charges under state law or City ordinance. Section 4.38.120 Confidentiality Except as otherwise required by law, it shall be unlawful for the City, any officer, employee or agent to divulge, release or make known in any manner any financial information submitted or disclosed to the City under the terms of this chapter. Nothing in this section shall prohibit: A. The disclosure of the names and addresses of any person who is operating a licensed establishment from which marijuana is sold or provided; or B. The disclosure of general statistics in a form which would not reveal an individual seller's financial information; or C. Presentation of evidence to the court, or other tribunal having jurisdiction in the prosecution of any criminal or civil claim by the Director or an appeal from the Director for amount due the City under this chapter; or D. The disclosure of information when such disclosure of conditionally exempt information is ordered under public records law procedures; or E. The disclosure of records related to a business' failure to report and remit the tax when the report or tax is in arrears for over six months or the tax exceeds five thousand dollars ($5,000). The City Council expressly finds and determines that the public interest in disclosure of such records clearly outweighs the interest in confidentiality under ORS 192.501(5). Section 4.38.130 Audit of Books, Records or Persons The City, for the purpose of determining the correctness of any tax return, or for the purpose of an estimate of taxes due, may examine or may cause to be examined by an agent or representative designated by the City for that purpose, any books, papers, records, or memoranda, including copies of seller's state and federal income tax return, bearing upon the matter of the seller's tax return. All books, invoices, accounts and other records shall be made available within the City limits and be open at any time during regular business hours for examination by the Director or an authorized agent of the Director. If any taxpayer refuses to voluntarily furnish any of the foregoing information when requested, the Director may immediately seek a subpoena from the Ashland Municipal Court to require that the taxpayer or a representative of the taxpayer attend a hearing or produce any such books, accounts and records for examination. Section 4.38.140 Forms and Regulations A. The Director is hereby authorized to prescribe forms and promulgate rules and regulations to aid in the making of returns, the ascertainment, assessment and collection of said med-iefd marijuana tax and in particular and without limiting the general language of this chapter, to provide for: 1) A form of report on sales and purchases to be supplied to all vendors; Ordinance No. Page 6 of 7 2) The records which sellers providing marijuana and marijuana-infused products are to keep concerning the tax imposed by this chapter. SECTION 2. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 3. Savings. Notwithstanding any amendment/repeal, the City ordinances in existence at the time any criminal or civil enforcement actions were commenced, shall remain valid and in full force and effect for purposes of all cases filed or commenced during the times said ordinance(s) or portions thereof were operative. This section simply clarifies the existing situation that nothing in this Ordinance affects the validity of prosecutions commenced and continued under the laws in effect at the time the matters were originally filed. SECTION 4. Codification. Provisions of this Ordinance shall be incorporated in the City Code and the word "ordinance" may be changed to "code", "article", "section", "chapter" or another word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 2-4) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. SECTION 5. Pursuant to Resolution No. 2016- , the Ashland City Council has referred this ordinance to the voters for approval at the general election of November 8, 2016. Accordingly this ordinance shall not be effective unless and until approved by the voters of the City of Ashland and following the official acceptance of the canvas of votes. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 2016, and duly PASSED and ADOPTED this day of _ , 2016. Barbara M. Christensen, City Recorder SIGNED and APPROVED this day of 2016. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. Page 7 of 7 CITY OF ASHLAND Council Communication February 2, 2016, Business Meeting Council Endorsement of SB 1574, Relating to Greenhouse Gas Emission Goals and Carbon Pollution Markets FROM: Adam Hanks, Management Analyst, adamna ashland.or.us SUMMARY Councilor Marsh has requested that the Council consider formal written support of the recently proposed Healthy Climate Act (Senate Bill 1574), which has been introduced in the 2016 session of the Legislature. BACKGROUND AND POLICY IMPLICATIONS: In June of 2015, the Council discussed and approved the drafting of a letter with Mayor Stromberg's signature in support of House Bill 3470, a bill intended to establish greenhouse gas emission limits and creating financial systems to ensure compliance with the established limits. While that particular bill failed to pass, a new bill has been introduced for the upcoming legislative session that aims to accomplish similar goals. The Healthy Climate Act (SB 1574) would require the establishment of greenhouse gas emissions goals and limits and require the creation of a carbon pollution marketplace, with proceeds from the market placed in dedicated state fiends. These dedicated funds include a Climate Investments Account within the State Highway Fund, a newly formed Climate Investments Fund (DEQ) and a Just Transition Fund (Business Oregon), all designated for specific climate related uses. At its meeting of January 27, 2016, the Conservation Commission approved a motion to recommend that Council support SB 1574. Their suggested motion is as follows: At its January 27, 2016 meeting, the Conservation Commission made a motion to encourage the City Council, Mayor, and Director of the Electric Utility Department to send Sen. Bates, Rep. Buckley, Senator Edwards & Senate President Courtney a letter of support for SB1574. Additionally, they encourage Mayor Stromberg to personally sign onto the Oregon Mayors letter of support for the same legislation. COUNCIL GOALS SUPPORTED: 22. Prepare for the impact of climate change on the community. FISCAL IMPLICATIONS: As of this time, no financial impact statements have been released by sponsors of the bill. Page I of 2 11VAE, 78th OREGON LEGISLATIVE ASSEMBLY--2016 Regular Session Senate Bill 1574 Sponsored by Senators EDWARDS, BEYER (Precession filed.) SUMMARY The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly. It is an editor's brief statement of the essential features of the measure as introduced. Repeals greenhouse gas emissions goals and requires Environmental Quality Commission to adopt by rule statewide greenhouse gas emissions goal for 2025, and limits for years 2035 and 2050. Requires Environmental Quality Commission to adopt carbon pollution market by rule. Requires commission to consult with certain interested persons and be advised by advisory committee in adopting rules. Provides for minimum requirements of carbon pollution market. Declares legislative purposes of carbon pollution market. Requires Department of Environmental Quality to administer auctions of carbon allowances under carbon pollution market. Provides for distribution of auction proceeds. Requires entities covered by carbon pollution market to surrender compliance instruments to meet compliance obligations. Imposes penalties for failure to timely submit compliance instruments. Requires electric utilities and natural gas utilities to use proceeds from sale of allowances consigned to auction only for certain activities consistent with legislative purposes of carbon pol- lution market. Requires Public Utility Commission to adopt rules necessary to prescribe such uses. Establishes Climate Investments Account within State Highway Fund. Requires that certain auction proceeds be deposited in account for purpose of funding programs consistent with legislative purposes of carbon pollution market. Establishes Oregon Climate Investments Fund. Requires that certain auction proceeds be de- posited in fund, to be distributed through Climate Investments Grant Program adopted by Environ- mental Quality Commission by rule. Establishes Just Transition Fund. Requires that certain auction proceeds be deposited in fund, to be distributed through Just Transition Grant Program adopted by Oregon Business Development Department by rule. Makes all provisions related to carbon pollution market and distribution of auction proceeds operative January 1, 2020. Authorizes Environmental Quality Commission, Public Utility Commis- sion and Oregon Business Development Department to adopt rules prior to operative date. Requires registration and reporting by certain sources of greenhouse gas emissions. Becomes operative January 1, 2017. Changes name of Oregon Global Warming Commission to Oregon Commission on Climate Change. Becomes operative January 1, 2017. Declares emergency, effective on passage. 1 A BILL FOR AN ACT 2 Relating to entities that contribute to greenhouse gas emissions; creating new provisions; amending 3 ORS 184.889, 352.823, 468A.050, 468A.200, 468A.21.0, 468A.215, 468A.220, 468A.225, 468A.230, 4 468A.235, 468A.240, 468A.245, 468A.250, 468A.255, 468A.260, 468A.270, 468A.280 and 757.528 and 5 section 9, chapter 751, Oregon Laws 2009; repealing ORS 468A.205 and 468A.210; and declaring 6 an emergency. 7 Whereas climate change and ocean acidification caused by greenhouse gas emissions threaten 8 to have significant detrimental effects on public health and the economic vitality, natural resources 9 and environment of this state; and 10 Whereas the diverse impacts of climate change and ocean acidification include the exacerbation 11 of air quality problems, a reduction in the quantity and quality of water available to this state from 12 mountain snowpack, a rise in sea levels resulting in the displacement of thousands of coastal busi- 13 nesses and residences, damage to marine ecosystems and food sources, the degradation of the na- 14 tural environment from increased severity of forest fires and pest infestations of stressed land-based 15 ecosystems, extreme weather events and an increase in the incidences of infectious diseases, asthma NOTE: Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted. New sections are in boldfaced type. LC 48 SB 1574 1 and other human health-related problems; and 2 Whereas climate change and ocean acidification will have detrimental effects on some of this 3 state's most important industries, including agriculture, forestry, commercial fishing, recreation and 4 tourism; and 5 Whereas climate change will strain the electricity and domestic water supplies that are neces- 6 sary for economic stability and the most basic levels of human well-being and survival in this state; 7 and 8 Whereas national and international actions are necessary to fully address climate change and 9 ocean acidification; and 10 Whereas national actions in the United States are emerging too slowly to address the scope, it magnitude and urgency of climate change and ocean acidification; and 12 Whereas many greenhouse gases persist in the atmosphere for millennia, meaning that the costs 13 of early policy inaction will be severe; and 14 Whereas in the absence of effective national engagement, it is the responsibility of the individ- 15 ual states, deemed to be the laboratories of process, to take immediate leadership actions to address 16 climate change and ocean acidification; and 17 Whereas by exercising a leadership role in addressing climate change and ocean acidification, 18 the State of Oregon will position its economy, technology centers, financial institutions and busi- 19 nesses to benefit from the national and international efforts that must occur to reduce greenhouse 20 gas emissions; and 21 Whereas by joining together with other leadership jurisdictions similarly resolved to address 22 climate change and ocean acidification, Oregon will help encourage more states, the federal gov- 23 ernment and the international community to act; and 24 Whereas global climate change has a disproportionate effect on disadvantaged communities, 25 which typically have fewer resources to adapt to climate change and are therefore the most vul- 26 nerable to displacement, adverse health effects, job loss, property damage and other effects of cli- 27 mate change; and 28 Whereas climate change policies can be designed to protect disadvantaged communities, rural 29 communities and workers from economic costs and can provide co-benefits to and within these 30 communities that include, but are not limited to, opportunities for job creation and training, in- 31 vestments in infrastructure, affordable housing investment, economic development, air quality im- 32 provements, energy savings and conservation and increased utilization of clean energy technologies; 33 and 34 Whereas any climate policy should address leakage to ensure a level playing field between in- 35 state and out-of-state companies to prevent jobs from leaving this state; and 36 Whereas the climate crisis is pressing; and 37 Whereas it is the intent of the Legislative Assembly to obtain reductions in greenhouse gas 38 emissions through legally binding market-based mechanisms; now, therefore, 39 Be It Enacted by the People of the State of Oregon: 40 SECTION 1. Sections 4 and 6 to 17 of this 2016 Act shall be known and may be cited as 41 the Healthy Climate Act of 2016. 42 43 STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS 44 45 SECTION 2. ORS 468A.205 is repealed. [21 SB 1574 1 SECTION 3. Section 4 of this 2016 Act is added to and made a part of ORS chapter 468A. 2 SECTION 4. (1) As used in this section, "statewide greenhouse gas emissions" means the 3 total annual emissions of greenhouse gases in this state and all emissions of greenhouse 4 gases from the generation of electricity generated outside this state that is delivered to and 5 consumed in this state, accounting for transmission and distribution line losses. 6 (2) The Environmental Quality Commission shall adopt by rule: 7 (a) A statewide greenhouse gas emissions goal for the year 2025 to limit greenhouse gas 8 emissions to levels that are at least 20 percent below 1990 levels; 9 (b) A statewide greenhouse gas emissions limit for the year 2035 that limits greenhouse 10 gas emissions to levels that are at least 45 percent below 1990 levels; and 11 (c) A statewide greenhouse gas emissions limit for the year 2050 that limits greenhouse 12 gas emissions to levels that are at least 75 percent below 1990 levels. 13 14 GREENHOUSE GAS CAP AND INVESTMENT PROGRAM 15 (Statement of Purposes) 16 17 SECTION 5. Sections 6 to 11, 14 and 15 of this 2016 Act and ORS 468A.200 to 468A.260 are 18 added to and made a part of ORS chapter 468A. 19 SECTION 6. (1) The Legislative Assembly finds and declares that the purposes of sections 20 6 to 17 of this 2016 Act are to reduce greenhouse gas emissions consistent with the statewide 21 greenhouse gas emission limits established under section 4 of this 2016 Act and to promote 22 adaptation and resilience by this state's communities and economy in the face of climate 23 change. 24 (2) Sections 6 to 17 of this 2016 Act and the rules adopted pursuant to sections 6 to 17 25 of this 2016 Act: 26 (a) Shall not be interpreted to limit the authority of any state agency to adopt and im- 27 plement measures to reduce greenhouse gas emissions; and 28 (b) Shall be interpreted in a manner consistent with federal law. 29 30 (Rules Advisory Committee) 31 32 SECTION 7. In adopting rules as required by sections 9, 10 and 11 of this 2016 Act, the 33 Environmental Quality Commission shall consult with the Environmental Justice Task 34 Force, Indian tribes, the Public Utility Commission, the State Department of Energy, the 35 Department of Transportation and other interested state and federal agencies, and shall be 36 advised by an advisory committee appointed by the Governor. The advisory committee may 37 be composed of any number of individuals with qualifications that the Governor determines 38 necessary. However, the Governor shall include members on the advisory committee who 39 reflect the geographic and demographic diversity of this state, as well as the diversity of 40 interests relating to efforts by the state to limit greenhouse gas emissions consistent with 41 section 4 of this 2016 Act. In appointing members to the advisory committee, the Governor 42 shall give preference to individuals who can represent the interests of multiple 43 constituencies. 44 45 (Definitions) [3l SB 1574 1 SECTION 8. As used in ORS 468A.200 to 468A.260 and sections 6 to 17 of this 2016 Act: 2 (1) "Allowance" means a tradable authorization to emit up to: 3 (a) One metric ton of carbon dioxide; or 4 (b) One unit of carbon dioxide equivalent. 5 (2) "Annual allowance budget" means the total number of allowances allocated by the 6 Environmental Quality Commission for auction or distribution in one calendar year. 7 (3) "Carbon dioxide equivalent" means the potential contribution of a greenhouse gas to 8 anthropogenic climate change expressed such that the potential contribution of one unit of 9 carbon dioxide equivalent is equal to the potential contribution of one metric ton of carbon 10 dioxide. 11 (4) "Carbon pollution market" means the system for regulating greenhouse gas emissions 12 from sources established by the Environmental Quality Commission by rule under section 9 13 of this 2016 Act. 14 (5) "Compliance instrument" means an allowance or an offset credit that may be used 15 to fulfill a compliance obligation. 16 (6) "Compliance obligation" means the quantity of compliance instruments that an entity 17 is required to surrender to the Department of Environmental Quality during a compliance 18 period under the carbon pollution market. 19 (7) "Covered entity" means a source that is required by the Environmental Quality 20 Commission to participate in the carbon pollution market. 21 (8) "Disadvantaged communities" includes, but is not limited to: 22 (a) Communities with a high percentage of people of color, low-income households, im- 23 migrants or refugees relative to other communities; 24 (b) Linguistically isolated communities; and 25 (c) Communities with high exposures to pollution or toxics relative to other communities. 26 (9) "Economically distressed area" means an area designated as distressed by the Oregon 27 Business Development Department under ORS 285A.020 and 285A.075. 28 (10) "Electric utility" has the meaning given that term in ORS 757.600. 29 (11) "General market participant" means a person that: 30 (a) Is a registered entity; 31 (b) Is not a covered entity or an opt-in entity; and 32 (c) Intends to purchase, hold, sell or voluntarily retire compliance instruments in the 33 carbon pollution market. 34 (12) "Greenhouse gas" means any gas that has contributed to anthropogenic climate 35 change, including but not limited to carbon dioxide, methane, nitrous oxide, 36 hydrofluorocarbons, perfluorocarbons and sulfur hexaflouride. 37 (13) "High road agreement" means an agreement among multiple stakeholders that 38 specifies goals for a project or program that are related to the quality and accessibility of 39 economic opportunities provided by that project or program, and that includes: 40 (a) Strategies for advancing the specified goals based on metrics that may include but 41 are not limited to: 42 (A) Requirements for wages and benefits; 43 (B) Workforce and business diversity; 44 (C) Training and career development; and 45 (D) Environmental benefits; [4l SB 1574 1 (b) A mechanism for implementing the agreement; and 2 (c) A process for evaluating a program or project's progress toward achieving the goals 3 specified in the agreement. 4 (14) "Leakage" means a reduction in greenhouse gas emissions within this state that is 5 offset by an increase in greenhouse gas emissions outside this state. 6 (15) "Natural gas utility" means a natural gas utility regulated by the Public Utility 7 Commission under ORS chapter 757. 8 (16) "Offset credit" means a tradable compliance instrument that is generated by an 9 offset project and that represents a reduction or removal of greenhouse gas emissions equal 10 to one metric ton of carbon dioxide or one unit of carbon dioxide equivalent. 11 (17) "Offset project" means a project that reduces or removes greenhouse gas emissions 12 that derive from sources that are not covered entities. 13 (18) "Opt-in entity" means a source that is not required to participate in the carbon 14 pollution market and that voluntarily chooses to participate in the carbon pollution market 15 as if it were a covered entity. 16 (19) "Registered entity" means a covered entity, opt-in entity, or general market partic- 17 ipant that has successfully registered to participate in the carbon pollution market. 18 (20) "Retire" means to permanently remove an allowance or offset credit from the carbon 19 pollution market such that the allowance or offset credit may not be sold, traded or other- 20 wise used again. 21 (21) "Source" means: 22 (a) An air contamination source as defined in ORS 468A.005; 23 (b) Any person that imports, sells, allocates or distributes for use in this state electricity, 24 the generation of which emits greenhouse gases; and 25 (c) Any person that imports, sells or distributes for use in this state fossil fuel that 26 generates greenhouse gases when combusted. 27 (22) "Surrender" means to transfer an allowance or offset credit to the Department of 28 Environmental Quality, either to meet a compliance obligation or on a voluntary basis. 29 30 (Carbon Pollution Market) 31 32 SECTION 9. (1) The Environmental Quality Commission shall adopt a carbon pollution 33 market by rule. Rules adopted under this section must, at a minimum: 34 (a) Identify sources subject to the carbon pollution market. In adopting rules under this 35 subsection, the commission: 36 (A) May not require sources that are subject to the provisions of the low carbon fuel 37 standards adopted under ORS 468A.275 to be subject to the carbon pollution market until the 38 reductions in greenhouse gas emissions per unit of fuel energy pursuant to the schedule de- 39 scribed in ORS 468A.275 (2)(b)(A) have been accomplished through the low carbon fuel stan- 40 dards. 41 (B) May not require a source to be subject to the carbon pollution market unless or until 42 the annual verified greenhouse gas emissions reported under ORS 468A.050 or 468A.280 at- 43 tributable to that source meet or exceed 25,000 metric tons of carbon dioxide. 44 (b) Set an annual allowance budget that will serve to cap the total combined greenhouse 45 gas emissions allowed from covered entities during the calendar year 2020, and a schedule (5] SB 1574 1 for annual allowance budgets to decrease by a predetermined amount each calendar year, 2 consistent with the greenhouse gas emission reductions necessary to prevent exceedance of 3 the greenhouse gas emissions levels established by section 4 of this 2016 Act. 4 (c) Establish a market for allowances and criteria for the distribution of allowances ei- 5 ther directly at no cost or through an auction administered by the Department of Environ- 6 mental Quality pursuant to section 10 of this 2016 Act. In distributing allowances, the 7 department: 8 (A) Shall place a certain percentage of allowances, as determined necessary by the com- 9 mission by rule, directly in an allowance price containment reserve designed to assist in 10 containing compliance costs for covered entities in the event of unanticipated high costs for 11 compliance instruments; 12 (B) Shall distribute to electric utilities and natural gas utilities, directly and free of 13 charge, allowances to be used by the utilities subject to section 12 of this 2016 Act; 14 (C) Shall distribute a limited quantity of allowances directly and free of charge, as de- 15 termined necessary by the commission, to covered entities other than electric utilities and 16 natural gas utilities in order to address leakage; and 17 (D) Shall allocate all remaining allowances to an auction holding account to be auctioned 18 pursuant to section 10 of this 2016 Act and associated rules. 19 (d) Establish standards for offset projects that may generate offset credits for covered 20 entities to use in meeting their compliance obligations under the carbon pollution market. 21 Offset projects must be projects not otherwise required by law that result in quantifiable, 22 permanent and verifiable greenhouse gas emissions reductions that would not have occurred 23 if the emission reduction activity had not been implemented as part of the offset project. In 24 adopting standards under this section, the commission shall take into consideration any 25 standards for offsets established by other states and countries with comparable carbon pol- 26 lution markets. 27 (e) Allow for the trading of compliance instruments. 28 (f) Establish three-year compliance periods, standards for calculating covered entities' 29 compliance obligations relative to the annual allowance budgets applicable during each com- 30 pliance period and, subject to section 11 of this 2016 Act, procedures by which covered enti- 31 ties shall meet their compliance obligations. 32 (g) Allow opt-in entities and general market participants to participate in the carbon 33 pollution market. 34 (2) All covered entities, opt-in entities and general market participants must register as 35 registered entities to participate in the carbon pollution market. The commission shall adopt 36 by rule registration requirements and any additional requirements necessary for registered 37 entities to participate in auctions administered by the department under section 10 of this 38 2016 Act. The commission may adopt a schedule of fees for registration under this sub- 39 section. Fees shall be reasonably calculated not to exceed the costs to the department in 40 administering the carbon pollution market. 41 (3) Greenhouse gas emissions reductions achieved pursuant to the carbon pollution 42 market developed under this section must be real, permanent, quantifiable, verifiable and 43 enforceable. 44 (4) In developing and administering the carbon pollution market under this section, the 45 commission may pursue linkage agreements with market-based programs in other states or [61 SB 1574 1 countries. 2 SECTION 10. (1) Except as provided in subsection (2) of this section, auctions of allow- 3 ances under the carbon pollution market shall be open to registered entities. The Environ- 4 mental Quality Commission shall adopt rules necessary for the Department of Environmental 5 Quality to administer the auctions. Rules adopted under this subsection must, at a minimum: 6 (a) Require the department to hold a maximum of four auctions annually. An auction 7 may include allowances from the annual allowance budget of the current year and allowances 8 from the annual allowance budgets from prior years that remained unsold at previous auc- 9 tions. The department may auction allowances from future annual allowance budgets sepa- 10 rately from allowances from current and previous annual allowance budgets. 11 (b) Require the department to engage: 12 (A) A qualified, independent contractor to run the auctions; and 13 (B) A qualified financial services administrator to hold bid guarantees, evaluate bid 14 guarantees and inform the department of the value of bid guarantees once the bids are ac- 15 cepted. 16 (c) Require the department to issue notice for an upcoming auction at least 90 days prior 17 to the auction. The auction must consist of a single round of sealed bids submitted during 18 a three-hour open window and must be conducted through a secure online system. 19 (d) Set an auction floor price and a schedule for the floor price to increase by a prede- 20 termined amount each calendar year as necessary for proper functioning of the carbon pol- 21 lution market. The department may not sell allowances at bids lower than the auction floor 22 price. 23 (e) Specify, as holding limits, the maximum number of allowances that may be held for 24 use or trade by a registered entity at any one time. 25 (f) Require allowances distributed free of charge to electric utilities and natural gas 26 utilities to be consigned to the state for auction. Proceeds from the sale of allowances con- 27 signed to the state under this subsection may be used only as provided in section 12 of this 28 2016 Act. 29 (g) Require a registered entity intending to participate in an auction to submit an appli- 30 cation to participate at least 30 days prior to the auction. 31 (h) Include provisions to guard against bidder collusion and minimize the potential for 32 market manipulation. 33 (2)(a) The department shall conduct reserve auctions of allowances from the allowance 34 price containment reserve once each calendar quarter, separate from the auction of other 35 allowances. Allowances unsold at a reserve auction must be made available again at future 36 reserve auctions. 37 (b) Only covered entities may participate in reserve auctions. 38 (c) The department shall follow the procedures for auctions adopted by rule under sub- 39 section (1) of this section for reserve auctions, except that the department may choose to 40 establish multiple price tiers for the allowances from the allowance price containment re- 41 serve. 42 (3) Upon completion and verification of the results of an auction conducted under this 43 section, the financial services administrator shall notify winning bidders and transfer the 44 proceeds of the auction as follows: 45 (a) For auction proceeds from allowances consigned to auction under subsection (1)(f) of [7] SB 1574 1 this section, to the electric utilities and natural gas utilities that consigned the allowances, 2 to be used only as specified in section 12 of this 2016 Act; 3 (b) For auction proceeds that constitute revenues described in Article IX, section 3a, of 4 the Oregon Constitution, to the State Treasurer to be deposited in the Climate Investments 5 Account in the State Highway Fund; and 6 (c) For auction proceeds remaining after distribution under paragraphs (a) and (b) of this 7 subsection, to the State Treasurer to be deposited as follows: 8 (A) Eighty-five percent in the Oregon Climate Investments Fund; and 9 (B) Fifteen percent in the Just Transition Fund. 10 SECTION 11. (1) A covered entity subject to the carbon pollution market developed under 11 section 9 of this 2016 Act must surrender to the Department of Environmental Quality the 12 quantity of compliance instruments equal to the entity's compliance obligation no later than 13 the surrender date for a compliance period specified by the Environmental Quality Commis- 14 sion by rule or order. 15 (2) The commission may require that offset credits constitute no more than eight percent 16 of the total quantity of compliance instruments submitted by a covered entity to meet the 17 entity's compliance obligation for a compliance period. 1.8 (3) In addition to any other penalty provided by law, a covered entity that fails to timely 19 surrender to the department a sufficient quantity of allowances to meet the entity's com- 20 pliance obligation must, no later than six months after the specified surrender date for the 21 compliance period, surrender to the department a penalty of four allowances for every one 22 allowance that the entity failed to timely surrender. 23 (4) If a covered entity reasonably believes that it will be unable to meet a compliance 24 obligation, the entity shall immediately notify the Department of Environmental Quality. 25 Upon receiving notification, the department shall issue an order requiring the entity to sur- 26 render penalty allowances as provided for under subsection (3) of this section. 27 (5) Three out of every four penalty allowances surrendered by a covered entity to the 28 department pursuant to this section must be offered by the department for purchase in fu- 29 ture auctions conducted under section 10 of this 2016 Act. The remaining penalty allowances 30 surrendered must be retired by the department and counted toward fulfilling the compliance 31 obligation of the covered entity in the compliance period for which the penalty allowances 32 were surrendered. 33 34 (Climate Investments) 35 36 SECTION 12. (1) An electric utility or natural gas utility that receives the proceeds from 37 the sale of allowances at auction under section 10 of this 2016 Act may use the auction pro- 38 ceeds only for the following activities, consistent with the purposes of sections 6 to 17 of this 39 2016 Act as stated in section 6 of this 2016 Act: 40 (a) Bill assistance for low-income residential customers; 41 (b) Bill assistance for energy intensive industrial customers; or 42 (c) Residential or small business climate credits. 43 (2) The Public Utility Commission shall adopt rules necessary to implement this section. 44 In adopting rules under this section, the commission shall consult with the advisory com- 45 mittee established under section 7 of this 2016 Act. 181 SB 1574 1 SECTION 13. (1) The Climate Investments Account is established within the State High- 2 way Fund. Interest earned by the Climate Investments Account shall be credited to the ac- 3 count. Moneys in the account are continuously appropriated to the Department of 4 Transportation to be used only for actions that further the purposes of sections 6 to 17 of 5 this 2016 Act as stated in section 6 of this 2016 Act. 6 (2) The Climate Investments Account shall consist of moneys deposited in the account 7 under section 10 of this 2016 Act. 8 (3)(a) Of the moneys deposited in the account each biennium: 9 (A) At least 20 percent must be used to support projects that are geographically located 10 in disadvantaged communities; and 11 (B) At least 20 percent must be used to support projects that otherwise benefit disad- 12 vantaged communities. 13 (b) For purposes of this section, the Department of Transportation shall designate dis- 14 advantaged communities using the methodology adopted by the Environmental Quality 15 Commission by rule under section 15 of this 2016 Act. 16 (4) In distributing moneys in the account, the Department of Transportation shall: 17 (a) Be advised by an advisory committee; and 18 (b) To the maximum extent feasible and practicable, give funding preference to projects 1.9 and programs that will result in the highest levels of greenhouse gas emission reductions. 20 (5) The advisory committee required under subsection (4) of this section shall consist of 21 11 members appointed by the Governor, with at least one from each congressional district 22 in this state. The Governor shall appoint members to the committee as follows: 23 (a) At least six members must be recommended by the Environmental Justice Task Force 24 and have experience in working to support environmental justice in disadvantaged commu- 25 nities; 26 (b) Three members must represent labor interests; and 27 (c) Two members must have expertise in energy and climate policy. 28 SECTION 14. (1) The Oregon Climate Investments Fund is established in the State 29 Treasury, separate and distinct from the General Fund. Interest earned by the Oregon Cli- 30 mate Investments Fund shall be credited to the fund. Moneys in the fund are continuously 31 appropriated to the Department of Environmental Quality to be distributed pursuant to the 32 Climate Investments Grant Program adopted under section 15 of this 2016 Act. 33 (2) The Oregon Climate Investments Fund shall consist of moneys deposited in the fund 34 under section 10 of this 2016 Act. 35 (3) Moneys in the fund may be used only for activities that further the purposes of 36 sections 6 to 17 of this 2016 Act as stated in section 6 of this 2016 Act. 37 SECTION 15. (1) The Environmental Quality Commission shall develop by rule a Climate 38 Investments Grant Program for distributing moneys in the Oregon Climate Investments 39 Fund. In developing the grant program, the commission shall consult with the advisory 40 committee created under section 7 of this 2016 Act. The grant program must carry out the 41 purposes of sections 6 to 17 of this 2016 Act as stated in section 6 of this 2016 Act. 42 (2)(a) Moneys must be distributed through the grant program developed under this sec- 43 tion such that, of the moneys deposited in the Oregon Climate Investments Fund each 44 biennium: 45 (A) At least 40 percent are distributed to projects that are geographically located in dis- 191 SB 1574 1 advantaged communities; and 2 (B) At least 40 percent are distributed to projects that are geographically located in 3 economically distressed areas, with an emphasis placed on projects or programs funded un- 4 der this paragraph that support job creation and job education and training opportunities. 5 (b) The commission shall consult with other state agencies, local agencies and officials 6 to develop by rule a methodology for designating disadvantaged communities for purposes 7 of paragraph (a) of this subsection. 8 (3) The grant program shall include the appointment of a grant committee. Members of 9 the grant committee shall be appointed by the Governor. The grant committee may be 10 composed of any number of individuals with qualifications that the Governor determines 11 necessary. However, the Governor shall include individuals with experience in administering 12 state grant programs. 13 (4) The commission shall determine the form and method of applying for grants from the 14 grant program, the eligibility requirements for grant applicants and general terms and con- 15 ditions of the grants. 16 (5) The commission shall provide that the grant committee review grant applications and 17 make a determination of funding based on a scoring system developed by the commission. 18 The scoring system shall, to the maximum extent feasible and practicable, give funding 19 preference to projects and programs that utilize high road agreements in the completion of 20 the projects or programs. The scoring system shall also give funding preference to projects 21 and programs that: 22 (a) Maximize multiple benefits in this state, including but not limited to environmental, 23 social and economic benefits; 24 (b) Result in greenhouse gas emissions reductions that are cost effective or that are the 25 product of business and research development interests in this state; 26 (c) Constitute investments in and the development of clean energy infrastructure and 27 technologies in this state; 28 (d) Complement efforts to achieve and maintain federal and state air quality standards; 29 (e) Protect disadvantaged communities and economically distressed areas from economic 30 uncertainties associated with climate change or climate change policies; or 31 (f) Make use of domestically produced products to the maximum extent feasible. 32 (6) The grant process developed under this section may: 33 (a) Require that a grant applicant provide matching funds for completion of the program 34 or project. 35 (b) Allow an applicant to appeal any determination of grant funding to the commission 36 for reevaluation. 37 (7) Subject to the grant rules established by the commission and subject to reevaluation 38 by the commission, the grant committee has the responsibility to review and make deter- 39 minations on grant applications under the grant program adopted pursuant to this section. 40 SECTION 16. The Just Transition Fund is established in the State Treasury, separate and 41 distinct from the General Fund. Interest earned by the Just Transition Fund shall be cred- 42 ited to the fund. The Just Transition Fund shall consist of moneys deposited in the fund 43 under section 10 of this 2016 Act. Moneys in the fund are continuously appropriated to the 44 Oregon Business Development Department to be distributed pursuant to the Just Transition 45 Grant Program developed under section 17 of this 2016 Act. Moneys in the fund may be used [10] SB 1574 1 only for activities that further the purposes of sections 6 to 17 of this 2016 Act as stated in 2 section 6 of this 2016 Act. 3 SECTION 17. (1) The Oregon Business Development Department shall develop by rule a 4 Just Transition Grant Program for the disbursement of moneys in the Just Transition Fund. 5 In developing the grant program, the department shall consult with the advisory committee 6 created under section 7 of this 2016 Act. The purpose of the grant program shall be to sup- 7 port economic diversification, job creation, job training and other employment and mental 8 health services for workers and communities in this state that are adversely affected by 9 climate change or climate change policies. 10 (2) The grant program shall include the appointment of a grant committee. Members of 11 the grant committee shall be appointed by the Governor. The grant committee may be 12 composed of any number of individuals with qualifications that the Governor determines 13 necessary. However, the Governor shall include on the committee: 14 (a) Individuals who have experience in administering state grant programs; 15 (b) Individuals recommended by the Environmental Justice 'c'ask Force who have experi- 16 ence in working to support environmental justice in disadvantaged communities; 17 (c) Representatives of labor organizations; and 18 (d) Individuals with energy and climate policy expertise. 19 (3) Subject to the grant rules established by the commission and subject to reevaluation 20 by the commission, the grant committee has the responsibility to review and make deter- 21 minations on grant applications under the grant program established pursuant to this sec- 22 tion. 23 (4) The department shall determine the form and method of applying for grants from the 24 grant program, the eligibility requirements for grant applicants and general terms and con- 25 ditions of the grants. 26 (5) The grant process developed under this section may: 27 (a) Require that a grant applicant provide matching funds for completion of the program 28 or project. 29 (b) Allow an applicant to appeal any determination of grant funding to the department 30 for reevaluation. 31 32 GREENHOUSE GAS EMISSIONS REGISTRATION AND REPORTING 33 34 SECTION 18. ORS 468A.280 is amended to read: 35 468A.280. (1) In addition to any registration and reporting that may be required under ORS 36 468A.050, the Environmental Quality Commission by rule may require registration and reporting by: 37 (a) Any person who imports, sells, allocates or distributes for use in this state electricity, the 38 generation of which emits greenhouse gases. 39 (b) Any person who imports, sells or distributes for use in this state fossil fuel that generates 40 greenhouse gases when combusted. 41 (2) Rules adopted by the commission under this section for electricity that is imported, sold, al- 42 located or distributed for use in this state may require reporting of information necessary to deter- 43 mine greenhouse gas emissions from generating facilities used to produce the electricity and related 44 electricity transmission line losses. 45 (3)(a) The commission shall allow consumer-owned utilities, as defined in ORS 757.270, to comply [ill SB 1574 1 with reporting requirements imposed under this section by the submission of a report prepared by 2 a third party. A report submitted under this paragraph may include information for more than one 3 consumer-owned utility, but must include all information required by the commission for each indi- 4 vidual utility. 5 (b) For the purpose of determining greenhouse gas emissions related to electricity purchased 6 from the Bonneville Power Administration by a consumer-owned utility, as defined in ORS 757.270, 7 the commission may require only that the utility report: 8 (A) The number of megawatt-hours of electricity purchased by the utility from the Bonneville 9 Power Administration, segregated by the types of contracts entered into by the utility with the 10 Bonneville Power Administration; and 11 (B) The percentage of each fuel or energy type used to produce electricity purchased under each 12 type of contract. 1.3 (4)(a) Rules adopted by the commission pursuant to this section for electricity that is purchased, 14 imported, sold, allocated or distributed for use in this state by an electric company, as defined in 15 ORS 757.600, must be limited to the reporting of: 16 (A) Greenhouse gas emissions emitted from generating facilities owned or operated by the elec- 17 tric company; 18 (B) Greenhouse gas emissions emitted from transmission equipment owned or operated by the 19 electric company; 20 (C) The number of megawatt-hours of electricity purchased by the electric company for use in 21 this state, including information, if known, on: 22 (i) The seller of the electricity to the electric company; and 23 (ii) The original generating facility fuel type or types; and 24 (D) An estimate of the amount of greenhouse gas emissions, using default greenhouse gas emis- 25 sions factors established by the commission by rule, attributable to: 26 (i) Electricity purchases made by a particular seller to the electric company; 27 (ii) Electricity purchases from an unknown origin or from a seller who is unable to identify the 28 original generating facility fuel type or types; 29 (iii) Electricity purchases for which a renewable energy certificate under ORS 469A.130 has 30 been issued but subsequently transferred or sold to a person other than the electric company; 31 (iv) Electricity transmitted for others by the electric company; and 32 (v) Total energy losses from electricity transmission and distribution equipment owned or oper- 33 ated by the electric company. 34 (b) Pursuant to paragraph (a) of this subsection, a multijurisdictional electric company may rely 35 upon a cost allocation methodology approved by the Public Utility Commission for reporting emis- 36 sions allocated in this state. 37 (5) Rules adopted by the commission under this section for fossil fuel that is imported, sold or 38 distributed for use in this state may require reporting of the type and quantity of the fuel and any 39 additional information necessary to determine the carbon content of the fuel. For the purpose of 40 determining greenhouse gas emissions related to liquefied petroleum gas, the commission shall allow 41 reporting using publications or submission of data by the American Petroleum Institute but may 42 require reporting of such other information necessary to achieve the purposes of the rules adopted 43 by the commission under this section. 44 (6) To an extent that is consistent with the purposes of the rules adopted by the commission 45 under this section, the commission shall minimize the burden of the reporting required under this [121 SB 1574 1 section by: 2 (a) Allowing concurrent reporting of information that is also reported to another state agency; 3 (b) Allowing electronic reporting; 4 (c) Allowing use of good engineering practice calculations in reports, or of emission factors 5 published by the United States Environmental Protection Agency; 6 (d) Establishing thresholds for the amount of specific greenhouse gases that may be emitted or 7 generated without reporting; 8 (e) Requiring reporting by the fewest number of persons in a fuel distribution system that will 9 allow the commission to acquire the information needed by the commission; or 10 (f) Other appropriate means and procedures determined by the commission. 11 (7)(a) Rules adopted under this section must support implementation of the carbon pol- 12 lution market developed under section 9 of this 2016 Act. 13 (b) If a person that has a compliance obligation under the carbon pollution market de- 14 veloped under section 9 of this 2016 Act fails to submit a report under this section, the de- 15 partment shall develop an assigned emissions level for that person for purposes of 16 participation in the carbon pollution market. 17 [(7)] (8) As used in this section, "greenhouse gas" [has the meaning given that term in ORS 18 468A.210] means any gas that has contributed to anthropogenic climate change, including but 19 not limited to carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons 20 and sulfur hexaflouride. 21 SECTION 19. ORS 468A.050 is amended to read: 22 468A.050. (1) By rule the Environmental Quality Commission may classify air contamination 23 sources according to levels and types of emissions and other characteristics [which] that cause or 24 tend to cause or contribute to air pollution and may require registration or reporting or both for 25 any such class or classes. 26 (2) Any person in control of an air contamination source of any class for which registration and 27 reporting is required under subsection (1) of this section shall register with the Department of En- 28 vironmental Quality and make reports containing such information as the commission by rule may 29 require concerning location, size and height of air contaminant outlets, processes employed, fuels 30 used and the amounts, nature and duration of air contaminant emissions and such other information 31 as is relevant to air pollution. 32 (3)(a) In addition to any other registration or reporting required under subsection (1) of 33 this section, the commission shall by rule require registration and reporting of greenhouse 34 gas emissions by air contamination sources classified pursuant to subsection (1) of this sec- 35 tion. Rules adopted under this subsection must support implementation of the carbon pol- 36 lution market developed under section 9 of this 2016 Act. 37 (b) If an air contamination source that has a compliance obligation under the carbon 38 pollution market developed under section 9 of this 2016 Act fails to submit a report under 39 this section, the department shall develop an assigned emissions level for that air contam- 40 ination source for purposes of participation in the carbon pollution market. 41 [(3)] (4) By rule the commission may establish a schedule of fees for the registration of any class 42 of air contamination sources classified pursuant to subsection (1) of this section for which a person 43 is required to obtain a permit under ORS 468A.040 or 468A.155 but chooses instead to register if 44 allowed by the commission by rule. The commission shall base the fees on the anticipated cost of 45 developing and implementing programs related to the different classes, including but not limited to [131 SB 1574 1 the cost of processing registrations, compliance inspections and enforcement. A registration must 2 be accompanied by any fee specified by the commission by rule, and a subsequent annual registra- 3 tion fee is payable as prescribed by rule of the commission. 4 [(4)(a)] (5)(a) By rule the commission may establish a schedule of fees for reporting of any class 5 of air contamination sources classified pursuant to subsection (1) of this section for which a person 6 is required to obtain permits under ORS 468A.040 or 468A.155 or is subject to the federal operating 7 permit program pursuant to ORS 468A.310. 8 (b) Before establishing fees pursuant to this subsection, the commission shall consider the total 9 fees for each class of sources subject to reporting under this subsection and for which permits are 10 required under ORS 468A.040 or 468A.155 or the federal operating permit program under ORS 11 468A.315. 12 (c) The commission shall limit the fees established under this subsection to the anticipated cost 13 of developing and implementing reporting programs. Any fees collected under this subsection for any 14 air contamination source issued a permit under ORS 468A.040 or 468A.155 or sources subject to the 15 federal operating permit program under ORS 468A.310 must be collected as part of the fee for that 16 specific permit. 17 SECTION 20. (1) The Department of Environmental Quality shall study the feasibility of 18 requiring greenhouse gas emissions reported under ORS 468A.050 and 468A.280 to be quanti- 19 fied and reported in a manner that meets: 20 (a) The standards established by the International Organization for Standardization un- 21 der ISO 14064; or 22 (b) Other standards that meet criteria identified by the department for calculating 23 emissions on a complete life cycle basis, including the emissions attributable to the ex- 24 traction, production, storage, transportation, delivery and final use combustion of a 25 greenhouse gas and fugitive losses, expressed in carbon dioxide equivalents. 26 (2) If the department determines that it is feasible, pursuant to the study required by 27 subsection (1) of this section, the Environmental Quality Commission may require 28 greenhouse gas emissions to be quantified and reported under ORS 468A.050 and 468A.280 in 29 a manner that meets the standards specified in subsection (1)(a) or (b) of this section. 30 31 OREGON GLOBAL WARMING COMMISSION NAME CHANGE 32 33 SECTION 21. ORS 468A.200 is amended to read: 34 468A.200. The Legislative Assembly finds that: 35 (1) In December 2004 the Governor's Advisory Group on Global Warming issued its report call- 36 ing for immediate and significant action to address [global warming] climate change, to reduce 37 Oregon's exposure to the risks of global warming] climate change and to begin to prepare for the 38 effects of [global warming] climate change. The advisory group also identified 46 specific recom- 39 mendations for measurable reductions in the state's greenhouse gas emissions. 40 (2) In partnership with the Governor's advisory group, 50 scientists signed the "Scientific Con- 41 sensus Statement on the Likely Impacts of Climate Change on the Pacific Northwest," which exam- 42 ined the potential effects of climate change on temperature, precipitation, sea level, marine 43 ecosystems and terrestrial ecosystems. The scientists recommended additional, improved scientific 44 studies and modeling of the effects of climate change on the atmosphere, oceans and land, as well 45 as modeling of the effects of economic and management policies. [14] SB 1574 1 (3) [Global warming] Climate change poses a serious threat to the economic well-being, public 2 health, natural resources and environment of Oregon. 3 (4) Oregon relies on snowpack for summer stream flows to provide energy, municipal water, 4 watershed health and irrigation. Also, a potential rise in sea levels threatens Oregon's coastal 5 communities. Reduced snowpack, changes in the timing of stream flows, extreme or unusual weather 6 events, rising sea levels, increased occurrences of vector-borne diseases and impacts on forest health 7 could significantly impact the economy, environment and quality of life in Oregon. 8 (5) Oregon forests play a significant role in sequestering atmospheric carbon, and losing this 9 potential to sequester carbon will have a significant negative effect on the reduction of carbon lev- 10 els in the atmosphere. 11 (6) [Global warming] Climate change will have detrimental effects on many of Oregon's largest 12 industries, including agriculture, wine making, tourism, skiing, recreational and commercial fishing, 13 forestry and hydropower generation, and will therefore negatively impact the state's workers, con- 14 sumers and residents. 15 (7) There is a need to assess the current level of greenhouse gas emissions in Oregon, to monitor 16 the trend of greenhouse gas emissions in Oregon over the next several decades and to take neces- 17 sary action to begin reducing greenhouse gas emissions in order to prevent disruption of Oregon's 18 economy and quality of life and to meet Oregon's responsibility to reduce the impacts and the pace 19 of [global warming] climate change. 20 (8) Oregon has been a national leader in energy conservation and environmental stewardship, 21 including the areas of energy efficiency requirements and investments, renewable energy invest- 22 ments, natural resource conservation, greenhouse gas offset requirements and investments, and 23 global warming pollution standards for passenger vehicles. Significant opportunities remain to re- 24 duce greenhouse gas emissions statewide, especially from major contributors of greenhouse gas 25 emissions, including electricity production, transportation, building construction and operation, and 26 the residential and consumer sectors. 27 (9) Actions to reduce greenhouse gas emissions will reduce Oregon's reliance on foreign sources 28 of energy, lead to the development of technology, attract new businesses to Oregon and increase 29 energy efficiency throughout the state, resulting in benefits to the economy and to individual busi- 30 nesses and residents. 31 (10) In devising measures to achieve reduction of greenhouse gas emissions, Oregon must strive 32 to not disadvantage Oregon businesses as compared to businesses in other states with which Oregon 33 cooperates on regional greenhouse gas emissions reduction strategies. 34 (11) Policies pursued, and actions taken, by Oregon will: 35 (a) In concert with complementary policies and actions by other states and the federal govern- 36 ment, substantially reduce the global levels of greenhouse gas emissions and the impacts of those 37 emissions; 38 (b) Encourage similar policies and actions by various stakeholders; 39 (c) Inform and shape national policies and actions in ways that are advantageous to Oregon 40 residents and businesses; and 41 (d) Directly benefit the state and local governments, businesses and residents. 42 SECTION 22. ORS 468A.210 is amended to read: 43 468A.210. As used in ORS 352.823 and 468A.200 to 468A.260: 44 (1) ["Global warming"] "Climate change" means an increase in the average temperature of the 45 earth's atmosphere that is associated with the release of greenhouse gases. [15] SB 1574 1 (2) "Greenhouse gas" means any gas that contributes to anthropogenic global warming includ- 2 ing, but not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons 3 and sulfur hexafluoride. 4 [0 "Greenhouse gas cap-and-trade system" means a system that:] 5 [(a) Establishes a total cap on greenhouse gas emissions from an identified group of emitters;] 6 [(b) Establishes a market for allowances that represent emissions; and] 7 [(c) Allows trading of allowances among greenhouse gas emitters.] 8 SECTION 23. ORS 468A.215 is amended to read: 9 468A.215. (1) There is created the [Oregon Global Warming Commission] Oregon Commission 10 on Climate Change. The commission shall consist of 25 members, including 11 voting members ap- 11 pointed by the Governor under this section and 14 ex officio nonvoting members specified in ORS 12 468A.220. 13 (2) Members of the commission appointed under this section shall be appointed so as to be rep- 14 resentative of the social, environmental, cultural and economic diversity of the state and to be rep- 15 resentative of the policy, science, education and implementation elements of the efforts to reduce 16 greenhouse gas emissions and to prepare Oregon for the effects of global warming] climate 17 change. Of the members appointed by the Governor under this section: 18 (a) One member shall have significant experience in manufacturing; 19 (b) One member shall have significant experience in energy; 20 (c) One member shall have significant experience in transportation; 21 (d) One member shall have significant experience in forestry; 22 (e) One member shall have significant experience in agriculture; and 23 (f) One member shall have significant experience in environmental policy. 24 (3) The Governor shall select a chairperson and a vice chairperson from among the members 25 appointed under this section. 26 (4) The term of office of a member appointed under this section is four years. Before the expi- 27 ration of the term of a member, the Governor shall appoint a successor whose term begins on Jan- 28 uary 31 next following. A member appointed under this section is eligible for reappointment. In case 29 of vacancy for any cause, the Governor shall make an appointment to become immediately effective 30 for the unexpired term. 31 (5) The members of the commission appointed under this section must be residents of this state. 32 Failure of a member to maintain compliance with the eligibility requirements related to the 33 member's appointment shall result in disqualification from serving on the commission. 34 (6) Voting members of the commission appointed under this section are entitled to expenses as 35 provided in ORS 292.495 (2). 36 SECTION 24. ORS 468A.220 is amended to read: 37 468A.220. (1) In addition to the members appointed under ORS 468A.215, the [Oregon Global 38 Warming Commission] Oregon Commission on Climate Change includes the following ex officio 39 nonvoting members: 40 (a) The Director of the State Department of Energy; 41 (b) The Director of Transportation; 42 (c) The chairperson of the Public Utility Commission of Oregon; 43 (d) The Director of the Department of Environmental Quality; 44 (e) The Director of Agriculture; 45 (f) The State Forester; [16] SB 1574 1 (g) The Water Resources Director; and 2 (h) Three additional [ex officio] advisory nonvoting members, each from a state agency or an 3 academic institution. 4 (2) The following representatives of the Legislative Assembly also shall serve as ex officio non- 5 voting members: 6 (a) Two members of the Senate, not from the same political party, appointed by the President 7 of the Senate; and 8 (b) Two members of the House of Representatives, not from the same political party, appointed 9 by the Speaker of the House of Representatives. 10 [(3) Each legislative member serves at the pleasure of the appointing authority and may serve so 11 long as the member remains in the chamber of the Legislative Assembly from which the member was 12 appointed.] 13 [(4)] (3) Notwithstanding ORS 171.072, members of the commission who are members of the 14 Legislative Assembly are not entitled to mileage expenses or a per diem and serve as volunteers on 15 the commission. 16 SECTION 25. ORS 468A.225 is amended to read: 17 468A.225. (1) A majority of the members of the [Oregon Global Warming Commission] Oregon 18 Commission on Climate Change constitutes a quorum for the transaction of business. 19 (2) The commission shall meet at times and places specified by a majority of the members of the 20 commission. 21 (3) Official action by the commission requires the approval of a majority of the voting 22 members of the commission. 23 [(3)] (4) The State Department of Energy shall provide clerical, technical and management per- 24 sonnel to serve the commission. Other agencies shall provide support as requested by the depart- 25 ment or the commission. 26 SECTION 26. ORS 468A.230 is amended to read: 27 468A.230. The [Oregon Global Warming Commission] Oregon Commission on Climate Change 28 may adopt by rule such standards and procedures as it considers necessary for the operation of the 29 commission. 30 SECTION 27. ORS 468A.235 is amended to read: 31 468A.235. The [Oregon. Global Warming Commission] Oregon Commission on Climate Change 32 shall recommend ways to coordinate state and local efforts to reduce greenhouse gas emissions in 33 Oregon consistent with the limits on greenhouse gas emissions [reduction goals] established by 34 [ORS 468A.205] section 4 of this 2016 Act and shall recommend efforts to help Oregon prepare for 35 the effects of [global warming] climate change. The Office of the Governor and state agencies 36 working on multistate and regional efforts to reduce greenhouse gas emissions shall inform the 37 commission about these efforts and shall consider input from the commission for such efforts. 38 SECTION 28. ORS 468A.240 is amended to read: 39 468A.240. (1) In furtherance of the limits on greenhouse gas emissions [reduction goals] estab- 40 lished by [ORS 468A.2051 section 4 of this 2016 Act, the [Oregon Global Warming Commission] 41 Oregon Commission on Climate Change may recommend statutory and administrative changes, 42 policy measures and other recommendations to be carried out by state and local governments, 43 businesses, nonprofit organizations or residents. In developing its recommendations, the commission 44 shall consider economic, environmental, health and social costs, and the risks and benefits of alter- 45 native strategies, including least-cost options. The commission shall solicit and consider public [17] SB 1574 1 comment relating to statutory, administrative or policy recommendations. 2 [(2) The commission shall examine greenhouse gas cap-and-trade systems, including a statewide 3 and multistate carbon cap-and-trade system and market-based mechanisms, as a means of achieving the 4 greenhouse gas emissions reduction goals established by ORS 468A.205.1 5 [(3)] (2) The commission shall examine possible funding mechanisms to obtain low-cost 6 greenhouse gas emissions reductions and energy efficiency enhancements, including but not limited 7 to those in the natural gas industry. 8 SECTION 29. ORS 468A.245 is amended to read: 9 468A.245. The [Oregon Global Warming Commission] Oregon Commission on Climate Change 10 shall develop an outreach strategy to educate Oregonians about the scientific aspects and economic 11 impacts of [global warming] climate change and to inf'Orm Oregonians of ways to reduce greenhouse 12 gas emissions and ways to prepare for the effects of [global warming] climate change. The com- 13 mission, at a minimum, shall work with state and local governments, the State Department of En- 14 ergy, the Department of Education, the Higher Education Coordinating Commission and businesses 15 to, implement the outreach strategy. 16 SECTION 30. ORS 468A.250 is amended to read: 17 468A.250. (1) The [Oregon Global Warming Commission] Oregon Commission on Climate 18 Change shall track and evaluate: 19 (a) Economic, environmental, health and social assessments of [global warming] climate change 20 impacts on Oregon and the Pacific Northwest; 21 (b) Existing greenhouse gas emissions reduction policies and measures; 22 (c) Economic, environmental, health and social costs, and the risks and benefits of alternative 23 strategies, including least-cost options; 24 (d) The physical science of [global warming] climate change; 25 (e) Progress toward preventing exceedanee of the greenhouse gas emissions [reduction goals] 26 limits established by [ORS 468A.205] section 4 of this 2016 Act; 27 (f) Greenhouse gases emitted by various sectors of the state economy, including but not limited 28 to industrial, transportation and utility sectors; 29 (g) Technological progress on sources of energy the use of which generates no or low 30 greenhouse gas emissions and methods for carbon sequestration; 31 (h) Efforts to identify the greenhouse gas emissions attributable to the residential and commer- 32 cial building sectors; 33 (i) The carbon sequestration potential of Oregon's forests, alternative methods of forest man- 34 agement that can increase carbon sequestration and reduce the loss of carbon sequestration to 35 wildfire, changes in the mortality and distribution of tree and other plant species and the extent to 36 which carbon is stored in tree-based building materials; 37 0) The advancement of regional, national and international policies to reduce greenhouse gas 38 emissions; 39 (k) Local and regional efforts to prepare for the effects of [global warming] climate change; and 40 (L) Any other information, policies or analyses that the commission determines will aid in [the 41 achievement of the greenhouse gas emissions reduction goals established by ORS 468A.2051 preventing 42 exceedance of the greenhouse gas emissions limits established by section 4 of this 2016 Act. 43 (2) The commission shall: 44 (a) Work with the State Department of Energy and the Department of Environmental Quality 45 to evaluate all gases with the potential to be greenhouse gases and to determine a carbon dioxide [18] SB 1574 1 equivalency for those gases; and 2 (b) Use regional and national baseline studies of building performance to identify incremental 3 targets for the reduction of greenhouse gas emissions attributable to residential and commercial 4 building construction and operations. 5 SECTION 31. ORS 468A.255 is amended to read: 6 468A.255. The [Oregon Global Warming Commission] Oregon Commission on Climate Change 7 may recommend to the Governor the formation of citizen advisory groups to explore particular areas 8 of concern with regard to the reduction of greenhouse gas emissions and the effects of [global 9 warming] climate change. 10 SECTION 32. ORS 468A.260 is amended to read: 11 468A.260. The [Oregon Global Warming Commission] Oregon Commission on Climate Change 12 shall submit a report to the Legislative Assembly, in the manner provided by ORS 192.245, by 13 [March 31 of each odd-numbered year] September 15 of each even-numbered year that describes 14 Oregon's progress toward [achievement of the greenhouse gas emissions reduction goals established 15 by ORS 468A.2051 preventing exceedance of the greenhouse gas emissions limits established 16 by section 4 of this 2016 Act. The report may include relevant issues and trends of significance, 17 including trends of greenhouse gas emissions, emerging public policy and technological advances. ].8 The report also may discuss measures the state may adopt to mitigate the impacts of global warm- 19 ing] climate change on the environment, the economy and the residents of Oregon and to prepare 20 for those impacts. 21 22 2017 CONFORMING AMENDMENTS 23 24 SECTION 33. ORS 184.889 is amended to read: 25 184.889. (1) The Oregon Transportation Commission, after consultation with and in cooperation 26 with metropolitan planning organizations, other state agencies, local governments and stakeholders, 27 as a part of the state transportation policy developed and maintained under ORS 184.618, shall adopt 28 a statewide transportation strategy on greenhouse gas emissions to aid in [achieving the greenhouse 29 gas emissions reduction goals set forth in ORS 468A.2051 preventing exceedance of the greenhouse 30 gas emissions limits established by section 4 of this 2016 Act. The commission shall focus on 31 reducing greenhouse gas emissions resulting from transportation. In developing the strategy, the 32 commission shall take into account state and federal programs, policies and incentives related to 33 reducing greenhouse gas emissions. 34 (2) The commission shall actively solicit public review and comment in the development of the 35 strategy. 36 SECTION 34. ORS 352.823 is amended to read: 37 352.823. (1) The Oregon Climate Change Research Institute is established at Oregon State Uni- 38 versity. In administering the institute, Oregon State University may seek the cooperation of other 39 public universities listed in ORS 352.002. 40 (2) The purpose of the Oregon Climate Change Research Institute is to: 41 (a) Facilitate research by faculty at public universities listed in ORS 352.002 on climate change 42 and its effects on natural and human systems in Oregon; 43 (b) Serve as a clearinghouse for climate change information; 44 (c) Provide climate change information to the public in integrated and accessible formats; 45 (d) Support the [Oregon Global Warming Commission] Oregon Commission on Climate Change [19] SB 1574 1 in developing strategies to prepare for and to mitigate the effects of climate change on natural and 2 human systems; and 3 (e) Provide technical assistance to local governments to assist them in developing climate 4 change policies, practices and programs. 5 (3) The Oregon Climate Change Research Institute shall assess, at least once each biennium, the 6 state of climate change science, including biological, physical and social science, as it relates to 7 Oregon and the likely effects of climate change on the state. The institute shall submit the assess- 8 ment to the Legislative Assembly in the manner provided in ORS 192.245 and to the Governor. 9 (4) State agencies may contract with the Oregon Climate Change Research Institute to fulfill 10 agency needs regarding the collection, storage, integration, analysis, dissemination and monitoring 11 of climate change information, research and training. 12 SECTION 35. Section 9, chapter 751, Oregon Laws 2009, is amended to read: 13 See. 9. (1) The Public Utility Commission shall develop estimates of the rate impacts for electric 14 companies and natural gas companies to meet the following alternative greenhouse gas emission 15 reduction goals for 2020: 16 (a) Ten percent below 1990 levels[, as specified in ORS 468A.2051; and 17 (b) Fifteen percent below 2005 levels. 18 (2) The commission shall submit a report presenting the estimates and explaining the analysis 19 used to develop the estimates to the appropriate interim committee of the Legislative Assembly prior 20 to November 1 of each even-numbered year. 21 22 2020 CONFORMING AMENDMENTS 23 24 SECTION 36. ORS 468A.210 is repealed. 25 SECTION 37. ORS 468A.270 is amended to read: 26 468A.270. (1) As used in this section: 27 (a) "Greenhouse gas" has the meaning given that term in [ORS 468A.2101 section S of this 2016 28 Act. 29 (b) "Motor vehicle" has the meaning given that term in ORS 801.360. 30 (2) The Environmental Quality Commission may adopt by rule standards and requirements de- 31 scribed in this section to reduce greenhouse gas emissions. 32 (3)(a) The commission may adopt requirements to prevent the tampering, alteration and modifi- 33 cation of the original design or performance of motor vehicle pollution control systems. 34 (b) Before adopting requirements under this section, the commission shall consider the anti- 35 tampering requirements and exemptions of the State of California. 36 (4) The commission may adopt requirements for motor vehicle service providers to check and 37 inflate tire pressure according to the tire manuf'acturer's or motor vehicle manufacturer's recom- 38 mended specifications, provided that the requirements: 39 (a) Do not apply when the primary purpose of the motor vehicle service is fueling vehicles; and 40 (b) Do not require motor vehicle service providers to purchase equipment to check and inflate 41 tire pressure. 42 (5) The commission may adopt restrictions on engine use by commercial ships while at port, and 43 requirements that ports provide alternatives to engine use such as electric power, provided that: 44 (a) Engine use shall be allowed when necessary to power mechanical or electrical operations if 45 alternatives are not reasonably available; [201 SB 1574 1 (b) Engine use shall be allowed when necessary for reasonable periods due to emergencies and 2 other considerations as determined by the commission; and 3 (c) The requirements must be developed in consultation with representatives of Oregon ports 4 and take into account operational considerations, operational agreements, international protocols 5 and limitations, the ability to fund the purchase and use of electric power equipment and the po- 6 tential effect of the requirements on competition with other ports. 7 (6) In adopting rules under this section, the commission shall evaluate: 8 (a) Safety, feasibility, net reduction of greenhouse gas emissions and cost-effectiveness; 9 (b) Potential adverse impacts to public health and the environment, including but not limited to 10 air quality, water quality and the generation and disposal of waste in this state; 11 (c) Flexible implementation approaches to minimize compliance costs; and 12 (d) Technical and economic studies of comparable greenhouse gas emissions reduction measures 13 implemented in other states and any other studies as determined by the commission. 14 (7) The provisions of this section do not apply to: 15 (a) Motor vehicles registered as farm vehicles under the provisions of ORS 805.300. 16 (b) Farm tractors, as defined in ORS 801.265. 17 (c) Implements of husbandry, as defined in ORS 801.310. 18 (d) Motor trucks, as defined in ORS 801.355, used primarily to transport logs. 19 SECTION 38. ORS 757.528 is amended to read: 20 757.528. (1) Unless modified by rule by the State Department of Energy as provided in this sec- 21 tion, the greenhouse gas emissions standard that applies to consumer-owned utilities is 1,100 pounds 22 of greenhouse gases per megawatt-hour for a generating facility. 23 (2) Unless modified pursuant to subsection (4) of this section, the greenhouse gas emissions 24 standard includes only carbon dioxide emissions. 25 (3) For purposes of applying the emissions standard to cogeneration facilities, the department 26 shall establish an output-based methodology to ensure that the calculation of emissions of 27 greenhouse gases for cogeneration facilities recognizes the total usable energy output of the process 28 and includes all greenhouse gases emitted by the facility in the production of both electrical and 29 thermal energy. 30 (4) The department shall review the greenhouse gas emissions standard established under this 31 section no more than once every three years. After public notice and hearing, and consultation with 32 the Public Utility Commission, the department may: 33 (a) Modify the emissions standard to include other greenhouse gases as defined in [ORS 34 468A.210] section 8 of this 2016 Act, with the other greenhouse gases expressed as their carbon 35 dioxide equivalent; and 36 (b) Modify the emissions standard based upon current information on the rate of greenhouse gas 37 emissions from a commercially available combined-cycle natural gas generating facility that: 38 (A) Employs a combination of one or more gas turbines and one or more steam turbines and 39 produces electricity in the steam turbines from waste heat produced by the gas turbines; 40 (B) Has a heat rate at high elevation within the boundaries of the Western Electricity Coordi- 41 nating Council; and 42 (C) Has a heat rate at ambient temperatures when operating during the hottest day of the year. 43 (5) In modifying the greenhouse gas emissions standard, the department shall: 44 (a) Use an output-based methodology to ensure that the calculation of greenhouse gas emissions 45 through cogeneration recognizes the total usable energy output of the process and includes all [211 SB 1574 1 greenhouse gases emitted by the generating facility in the production of both electrical and thermal 2 energy; and 3 (b) Consider the effects of the emissions standard on system reliability and overall costs to 4 electricity consumers. 5 (6) If upon a review conducted pursuant to subsection (4) of this section, the department deter- 6 mines that a mandatory greenhouse gas emissions limit has been established pursuant to state or 7 federal law, the department shall issue a report to the appropriate legislative committees of the 8 Legislative Assembly stating which portions, if any, of the greenhouse gas emissions standard are 9 no longer necessary as a matter of state law. 10 11. OPERATIVE DATES 12 13 SECTION 39. (1)(a) Sections 3 and 4 of this 2016 Act, the amendments to ORS 184.889, 14 352.823, 468A.050, 468A.200, 468A.210, 468A.215, 468A.220, 468A.225, 468A.230, 468A.235, 15 468A.240, 468A.245, 468A.250, 468A.2559 468A.260 and 468A.280 and section 9, chapter 751, 16 Oregon Laws 2009, by sections 18, 19 and 21 to 35 of this 2016 Act, and the repeal of ORS 17 468A.205 by section 2 of this 2016 Act become operative on January 1, 2017. 1s (b) The Environmental Quality Commission may adopt rules before the operative date 19 specified in paragraph (a) of this subsection or take any actions before the operative date 20 specified in paragraph (a) of this subsection that are necessary to carry out the provisions 21 of section 4 of this 2016 Act. Any rules adopted by the commission under this subsection do 22 not become operative until January 1, 2017. 23 (2)(a) Sections 5, 6 to 17 and 20 of this 2016 Act, the amendments to ORS 468A.270 and 24 757.528 by sections 37 and 38 of this 2016 Act, and the repeal of ORS 468A.210 by section 36 25 of this 2016 Act become operative on January 1, 2020. 26 (b) The Environmental Quality Commission, the Public Utility Commission, the Depart- 27 ment of Transportation and the Oregon Business Development Department may adopt rules 28 before the operative date specified in paragraph (a) of this subsection or take any actions 29 before the operative date specified in paragraph (a) of this subsection that are necessary to 30 carry out the provisions of sections 6 to 17 and 20 of this 2016 Act. Any rules adopted by the 31 Environmental Quality Commission, the Public Utility Commission, the Department of 32 Transportation or the Oregon Business Development Department under this subsection do 33 not become operative until January 1, 2020. 34 35 REPORT 36 37 SECTION 40. The Department of Environmental Quality shall report on the implemen- 38 tation of sections 6 to 17 and 20 of this 2016 Act to the interim legislative committees on 39 environment and natural resources on or before September 15, 2018. 40 41 CAPTIONS 42 43 SECTION 41. The unit captions used in this 2016 Act are provided only for the conven- 44 ience of the reader and do not become part of the statutory law of this state or express any 45 legislative intent in the enactment of this 2016 Act. [221 SB 1574 1 EMERGENCY CLAUSE 2 3 SECTION 42. This 2016 Act being necessary for the immediate preservation of the public 4 peace, health and safety, an emergency is declared to exist, and this 2016 Act takes effect 5 on its passage. 6 [23] CITY OF ASHLAND June 2, 2015 Representative Phil Barnhart Representative Paul Holvey Representative Peter Buckley Dear Representatives, The Ashland City Council and I are submitting this letter of support for the passage of House Bill 3470. We concur with both the timing and the need to establish greenhouse gas emission limits in Oregon. Developing firm emission limits and creating financial systems to ensure compliance in order to achieve those target emission reductions is an important step for Oregon's fixture. Information regarding this bill was first brought to our attention by citizen and local groups advocating before the City's Conservation Commission. The support of that Commission reflects the wide spread support and interest in the community of Ashland of this issue. We believe that joining with Washington, California, and the Province of British Colombia in passing legislation can have positive national and international impacts. We recognize the importance of this issue and of implementing legislation to take meaningful action towards the common goal of reducing greenhouse gas emissions. We recognized that IIB 3470 remains in legislative committee and would request that this letter of support be entered into the record. We appreciate the efforts that you, as chief sponsors of this bill, have made to move this legislation forward. We wish you continued success and thank you for your time and energy on this topic of vital importance. SinceJrjely, John Stromberg, Mayor C: Senator Alan Bates, District 3 Ashland City Council Ashland Conservation Commission i OFFICE OF THE MAYOR Tel: 541-488-6002 20 East Main Street Fax: 541-488-5311 Ashland, Oregon 97520 TTY: 800-735-2900 ILI www.ashland.or.us CITY OF ASHLAND Council Communication February 2, 2016, Business Meeting First Reading of an Ordinance Creating AMC Chapter 9.30 to Prohibit Smoking in Places of Employment, in Enclosed Areas Open to the Public, and in Downtown Ashland FROM: Dave Kanner, city administrator, dave.kanner a ashland.or.us SUMMARY This is an ordinance that codifies the Oregon Indoor Clean Air Act (ORS 433.835 et seq.) into the Ashland Municipal Code. Doing so allows the Ashland Police Department to enforce the provisions of the Act, which is otherwise enforced by local public health departments and property owners. The Indoor Clean Air Act prohibits smoking or the use of inhalants in all public places and places of employment. Public places are defined as any enclosed area open to the public. In addition this ordinance prohibits smoking or the use of inhalants in downtown Ashland. BACKGROUND AND POLICY IMPLICATIONS: At Councilor Seffinger's request, the Council at its November 2, 2015, study session, discussed the potential for an ordinance to limit or prohibit smoking in downtown Ashland. At the conclusion of that discussion, Council directed staff to draft an ordinance that codifies the Oregon Indoor Clean Air Act (ORS 433.835, et seq). By codifying the state law the Ashland Police Department can enforce the terms of the act as a violation of the city code. The ordinance as drafted goes beyond the Indoor Clean Air Act in two important respects. First, it prohibits smoking or the use of inhalants anywhere in downtown Ashland. Downtown Ashland is defined in AMC chapter 10.120, the persistent violator ordinance. In addition, the ordinance provides a means by which holders of an Oregon Liquor Control Commission license can apply for a limited exception to the downtown smoking ban in order to allow smoking in front of their establishments. Otherwise, the basic terms of the Clean Air Act and this proposed ordinance are as follows: 1. Smoking or the use of inhalants is prohibited in any public place or a place of employment except in designated smoking areas as defined in the clean air act. A public place means any enclosed area that is open to the public. Designated areas typically relate to sleeping rooms in hotels and motels where smoking is permitted. 2. Smoking is prohibited within 10 feet of entrances, exits, windows that open and ventilation intakes that serve an enclosed area of a public place or a place of employment. COUNCIL GOALS SUPPORTED: 7. Keep Ashland a family-friendly community. Page l of 2 11FAW, CITY OF ASHLAND FISCAL IMPLICATIONS: Some outlay of funds would be required for signage downtown should the Council choose to prohibit smoking downtown. This expenditure would likely be relatively small; certainly less than $3,000. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approval of this ordinance on first reading. SUGGESTED MOTION: I move approval on first reading by title only of an ordinance creating AMC Chapter 9.30 to prohibit smoking in places of employment, in enclosed areas open to the public and in downtown Ashland, and moving the ordinance to second reading. ATTACHMENTS: Ordinance Page 2 of 2 !Alll ORDINANCE NO. AN ORDINANCE CREATING AMC CHAPTER 9.30 TO PROHIBIT SMOKING IN PLACES OF EMPLOYMENT, IN ENCLOSED AREAS OPEN TO THE PUBLIC, AND IN DOWNTOWN ASHLAND WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: Powers of the City. The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, the exposure to secondhand smoke is known to cause cancer and other chronic diseases such as heart disease, asthma and bronchitis. WHEREAS, reducing exposure to smoke on public property with concentrated pedestrian activity, in enclosed areas open to the public, and in places of employment in the City of Ashland would benefit the well-being of its citizens. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 9.30 is hereby added to read as follows: 9.30.010 Definitions The following words and phrases whenever used in this chapter shall be construed as defined in this section. A. "Cigar bar" has the meaning provided in ORS 433.835(1). B. "Downtown" has the meaning provided in AMC 10.120.010(B)(1). C. "Enclosed area" means all space between a floor and a ceiling that is enclosed on three or more sides by permanent or temporary walls or windows, exclusive of doors or passageways, that extend from the floor to the ceiling. D. "Inhalant" means nicotine, a cannabinoid or any other substance that is in a form that allows the nicotine, cannabinoid or substance to be delivered into a person's respiratory system by inhalation and is not approved by, or emitted by a device approved by, the United States Food and Drug Administration for a therapeutic purpose. E. "Inhalant delivery system" means a device that can be used to deliver nicotine or cannabinoids in the form of a vapor or aerosol to a person inhaling from the device. F. "Place of employment" means every enclosed area under the control of a public or private employer that employees frequent during the course of employment, including but not limited to work areas, employee lounges, vehicles that are operated in the course of an employer's business that are not operated exclusively by one employee, rest Ordinance No. Page 1 of 4 rooms, conference rooms, classrooms, cafeterias, hallways, meeting rooms, elevators and stairways. "Place of employment" includes privately-owned and publicly-owned enclosed areas where volunteers perform work typically done by employees. "Place of employment" does not include a private residence unless it is used as a child care facility as defined in ORS or a facility providing adult day care as defined in ORS 410.490. G. "Plaza" means the area bounded by and including East Main Street, North Main Street, and Winburn Way. H. "Smoke shop" means a business that is certified with the authority as a smoke shop pursuant to the rules adopted under ORS 433.847. 1. "Smoking instrument" means any cigar, cigarette, pipe or other instrument or inhalant delivery system used to smoke tobacco, marijuana or any other inhalant. 9.30.020 Smoking Prohibited A. Except as allowed in AMC 9.30.040, a person may not smoke, aerosolize or vaporize an inhalant or carry a lighted smoking instrument in a place of employment, in an enclosed area open to the public, on any sidewalk in Downtown Ashland, on the Plaza, or on the area at the corner of East Main Street and South Pioneer Street known as Chautauqua Square. B. A person may not smoke, aerosolize or vaporize an inhalant or carry a lighted smoking instrument within 10 feet of the following parts of places of employment or enclosed areas open to the public: 1) Entrances; 2) Exits; 3) Windows that open; and 4) Ventilation intakes that serve an enclosed area. C. A person may not smoke or carry any lighted smoking instrument in a room during the time that jurors are required to use the room. 9.30.030 Smoke Free Place of Employment A. An employer shall provide a place of employment that is free of tobacco smoke for all employees. B. Except in those places described in AMC 9.30.040A to E, an employer shall post signs that provide notice of the provisions of ORS 433.835 to 433.875. 9.30.040 Exemptions from Smoking Prohibition A. The owner or person in charge of a hotel or motel may designate up to 25 percent of the sleeping rooms of the hotel or motel as rooms in which smoking is permitted. B. Smoking of noncommercial tobacco products for ceremonial purposes is permitted in spaces designated for traditional ceremonies in accordance with the American Indian Religious Freedom Act, 42 U.S.C. 1996. C. Smoking is permitted in a smoke shop. D. Smoking is permitted in a cigar bar that generated on-site retail sales of cigars of at least $5,000 for the calendar year ending December 31, 2006. E. A performer may smoke or carry a lighted smoking instrument that does not contain tobacco while performing in a scripted stage, motion picture or television production if: Ordinance No. Page 2 of 4 1) The production is produced by an organization whose primary purpose is producing scripted productions; and 2) Smoking is an integral part of the production. F. A business or property owner in Downtown Ashland may apply annually for an exemption to the provisions of AMC 9.30.020A subject to the following: 1) An application for an exemption must be made on a form approved by the City Administrator. 2) The exemption may be granted only to those businesses and properties licensed to serve alcoholic beverages by the Oregon Liquor Control Commission. 3) The exemption shall be for a period of one year and may be renewed upon re- application. 4) The exemption shall apply only between the hours of 8 p.m. and 2 a.m. 5) The exemption shall not mitigate or otherwise alter the smoking prohibition in AMC 9.30.020B. 6) An exempted business or property must provide and maintain a cigarette disposal container in front of the business. Such container must be of a type and design approved by the City Administrator. 7) An exempted business or property must provide signage inside the business or property advising that smoking is prohibited in downtown Ashland, but is permitted in front of the business or property, consistent with all other provisions of the Ashland Municipal Code. SECTION 2. Savings. Notwithstanding this amendment/repeal, the City ordinances in existence at the time any criminal or civil enforcement actions were commenced, shall remain valid and in full force and effect for purposes of all cases filed or commenced during the times said ordinances(s) or portions thereof were operative. This section simply clarifies the existing situation that nothing in this Ordinance affects the validity of prosecutions commenced and continued under the laws in effect at the time the matters were originally filed. SECTION 3. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 4. Codification. Provisions of this Ordinance shall be incorporated in the City Code and the word "ordinance" may be changed to "code", "article", "section", "chapter" or another word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 2-3) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 2016, and duly PASSED and ADOPTED this day of , 2016. Barbara M. Christensen, City Recorder Ordinance No. Page 3 of 4 SIGNED and APPROVED this day of , 2016. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. Page 4 of 4