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Home My WebLink About2017-1205 Council 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 an 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 forn 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 December 5, 2017 Council Chambers 1175 E. Main Street Note: Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.E.] 7:00 p.m. Regular Meeting 1. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENTS V. APPROVAL OF MINUTES 1. Study Session of November 20, 2017 2. Business Meeting of November 21, 2017 VI. SPECIAL PRESENTATIONS & AWARDS 1. Annual Presentation by the Planning Commission 2. Presentation by the Rogue Valley Community Organizations Active in Disasters 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. MINUTES OF BOARDS, COMMISSIONS, AND COMMITTEES Airport Conservation Forest Lands Historic Housing and Human Srvs. Parks & Recreation Planning Public Arts Transportation Tree Wildfire Mitigation IX. CONSENT AGENDA 1. Appointment of Dana Greaves to the Airport Commission 3. Appointments to the ad hoc Climate and Energy Committee 4. Approval of a personal services contract for wastewater treatment plan outfall relocation preliminary design and permitting COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9, OR ON CHARTER CABLE CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US CITY OF ASHLAND 5. Approval of a resolution titled, "A resolution establishing a recycling surcharge" X. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. Public hearings shall conclude at 9:00 p.m. and be continued to a future date to be set by the Council, unless the Council, by a two-thirds vote of those present, extends the hearing(s) until up to 10:30 p.m. at which time the Council shall set a date for continuance and shall proceed with the balance of the agenda.) 1. Public hearing and approval of purchase of real property - 345 Clinton Street XI. UNFINISHED BUSINESS 1. City Administrator Appointment and Recruitment Process XII. NEW AND MISCELLANEOUS BUSINESS 1. 11t Quarter Financial Report of the 2017/19 Biennium 2. Acceptance of FY 2016/17 Comprehensive Annual Financial Report and Component Unit Financial Report XIII. ORDINANCES, RESOLUTIONS AND CONTRACTS 1. First reading, by title only, of two ordinances titled, "An ordinance amending AMC 2.08.020 to remove some responsibilities from Recorder's function," and, "An ordinance amending AMC 2.28.130 to add responsibilities to Finance Department functions" and advance both on to second reading 2. First reading, by title only, of an ordinance titled, "An ordinance amending AMC 4.38 to conform with the Oregon Department of Revenue assessing and collecting marijuana tax, interest and penalties" and advance on to second reading XIV. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS XV. ADJOURNMENT OF BUSINESS MEETING In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9, OR ON CHARTER CABLE CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US Council Business Meeting December 19, 21070 Title: Approval of a Change Order in Excess of 25% for Butler Bandshell Improvement and Repair From: Kaylea Kathol Public Works Project Manager kaylea.kathol@gmail.com Summary: Before Council is a change order request in excess of 25% of original project cost to perform improvements and repairs at the Butler Band Shell. The change order includes (a) removal of a previously undiscovered moisture damaged segment of wall, (b) installation of a drip edge along the shell overhang to prevent future moisture intrusion, and (c) fabrication of two metal mounting plates for attachment of the speakers to shell overhang. The change order request causes the total project cost to exceed Oregon's $50,000 prevailing wage threshold. Consequently, the change order request includes escalation of hourly labor rates to prevailing wage rates for the contractor's employees and all first-tier subcontractors for all work. Actions, Options, or Potential Motions: Council has the option to approve this change order in full or in part. Potential motions include: 1. Move approval of a full change order for $19,726 to remove a moisture-damaged wall and install a drip edge to prevent future damages, paid at prevailing wage labor rates. 2. Move approval of a partial change order for $1,663 to remove a moisture-damaged wall, paid at contractor's standard labor rates Staff Recommendation: Staff recommends Council approve the full change order request of $19,726, which is the amount required to remove moisture damaged features, prevent future damages through the installation of a drip edge, and mount the speakers in a manner that is consistent with the current version of the Oregon Structural Specialty Code. While approval of a partial change order will provide near-term cost savings by keeping project costs below the prevailing wage rate threshold, staff does not recommend approval of a partial change order, as failure to install a drip edge along the shell overhang will result in continued moisture intrusion into the interior rooms of the Bandshell, thereby perpetuating the cycle of moisture damage and short-term facility repairs. Resource Requirements: The Bandshell repair contract was awarded for $47,543. The recommended change would increase the total cost by twenty-nine percent for a total cost of $67,269. The 2017-19 Biennium Budget for Public Works Facilities Expenses includes Capital Outlay funds for repair and maintenance of City facilities in the amount of $355,000. Policies, Plans and Goals Supported: City Council: Page 1 of 3 CITY OF -ASHLAND I 4. Evaluate real property and facility assets to strategically support city mission and goals. 4.1 Identify and evaluate underperforming assets 21. Be proactive in using best practices in infrastructure management and modernization Department Goals: • Maintain existing infrastructure to meet regulatory requirements and minimize life-cycle costs • Maintain and improve infrastructure that enhances the economic vitality of the community • Evaluate all city infrastructure regarding planning management and financial resources Backl4round and Additional Information: In June 2016 the City Building Official issued a memo to Public Works facilities staff identifying potential structural deficiencies at the Butler Bandshell. The memo recommended Public Works conduct a comprehensive evaluation of the Bandshell to determine the extent of the deficiencies. Public Works commissioned ACE Engineering, a structural engineering firm, to evaluate the Bandshell and develop construction plans and specifications for repairs and improvements identified by the evaluation. The evaluation found that the Bandshell was structurally sound, but was characterized by numerous non-structural damages or deficiencies caused primarily by years of deferred maintenance, moisture damage, and improper use of the structure. The City developed and bid repair and improvement work for the Bandshell in the fall of 2018 to correct identified deficiencies. Three responsive bids were received, all of which were within the $40,000 range. A contract was awarded to Vitus Construction, the lowest responsible bidder. After initial demolition began, pervasive dry rot was found in the frame of an interior partition wall. The contractor proposed demolition of the wall and abandonment of plumbing features, or removal and reconstruction of the wall. Staff opted for demolition, as it was the least expensive option and removed a "nuisance" feature that restricted functionality of the facility. The contractor also proposed installation of a drip edge along the shell overhang as a long term, reliable solution for preventing future moisture intrusion into the structure. The initial change order request for work items was estimated at $3,615 which would result in a total project cost that exceeds Oregon's $50,000 prevailing wage threshold. At the City's request, a revised change order request was issued by the contractor for $19,476. The revision included an escalation factor to the prevailing wage rate for all employees and first tier subcontractors involved on the project from start to finish. This is consistent with the provisions of ORS 279C.800 to 279C.870, the Oregon Prevailing Wage law for proposed bid prices that exceed $50,000. On December 13, 2017, the contractor discovered that the speakers could not be mounted on the bandshell overhang is specified in the construction plans due to the presence of a metal plate embedded in the concrete overhang. The contractor could not drill anchor holes through the metal plate, and instead proposed fabrication of a wider speaker mounting plate that would extend beyond the edges of embedded metal. Estimated fabrication costs were $250 for the new mounting plates. Staff approved the change verbally and documented the approval in an email. The issue was discovered on the afternoon of the deadline for completing Council meeting packets. Due to the late date of the finding, a formal change order request had not yet been Page 2of3 CITY OF ASHLAND issued in time to be included in this staff report. Therefore, the email confirmation of a $250 change is attached in lieu of a formal change order. Next Steps: If approved, staff will execute the change order and provide approval to the contractor to move forward with completion of Bandshell repairs and improvements. The proposed changes will constitute the final components for completing the project. The project is currently on track to be completed two months ahead of schedule. Attachments: • Engineer's evaluation report (oversized construction plans are available upon request) • Contractor's change order request for wall removal, drip edge installation, and prevailing wage upcharge • Email confirmation of December 13, 2017 change order request Reference: The following are available upon request - kaylea.kathol@ashland.or.us: • Building Official's 2016 memo regarding Bandshell condition • Construction solicitation: Invitation to Bid - Lithia Park Bandshell Repair and Improvement • Engineer's construction plans Page 3of3 CITY OF LA ~SH N D Allan Goffe, Professional Structural Engineer ACE engineering LLC P. 0. Box 231, Ashland, Oregon 97520 Telephone (541) 552-1417 ace-engineehngllc.com September 16, 2016 City of Ashland Public Works/Engineering Attention: Kaylea Kathol 51 Winburn Way Ashland, Oregon 97520 Subject: Lithia Park Band Shell, Winburn Way, Ashland, Oregon Ms Kathol, ACE Engineering LLC visited the Lithia Park Band Shell site several times over the past few months to evaluate the integrity of the structure. It appears the Band Shell was originally designed and built around 1949. The Band Shell has experienced some damage due to flooding several times during its lifetime and repairs have been made. The building has received some minor improvements and regular maintenance throughout its lifetime. The primary structure is cast in place, reinforced concrete. The main roof structure was designed and built as a series of sloped, cantilevered, inverted, concrete T shapes. The sloping main roof structure provides a cover over the stage which is used by the Ashland City Band, other performers and as an event podium throughout the seasons. The sloping main roof has sound baffles, lights, speakers and miscellaneous hooks suspended from the underside of the primary structure. Behind the stage is a storage room that formerly housed an organ, storage area and restrooms. The storage room is divided into several small rooms, one at the main stage level with wood framed walls and floor. The remaining rooms are concrete exterior walls, wood framed & plaster interior partitions and concrete slabs on grade. These storage rooms are used by the Ashland City Band and other event coordinators to securely store equipment when not in use. There are two small rooms flanking the stage. These rooms are outside the main roof structure and have their own flat concrete roof supported by concrete walls. The roofs of these rooms were apparently filled with soil and acted as flower boxes. The roof of the room to the north has had the soil removed and appears to be sound and is currently used for storage. However, the roof of the room to the south still contained some soil at the time of the site visit. The south roof has experienced decay and the concrete has crumbled. The room to the south is unoccupied and signed to limit occupancy. Original design drawings for the Band Shell were provided by the City of Ashland. These drawings were used to evaluate the capacity of the structural elements of the Band Shell. Using the original design drawings, calculations for the primary structural elements were performed based on the current Building Code. The current Building Code requires structural elements to support loads that act vertically and laterally. Vertical loads include the self weight of the structure, snow load and live load (occupants & moveable elements). Lateral loads include wind and seismic loads. After performing calculations for the primary structural elements it was determined that the existing structure is capable of supporting current Building Code prescribed loads. 1 0.~Alllan Goffe, Professional Structural Engineer CE engineering LLC P. 0. Box 231, Ashland, Oregon 97520 Telephone (541) 552-1417 ace-engineeringllc.conn To assist in the structural evaluation guidelines for the rehabilitation of structures published by FEMA were used. These guidelines start with a broad overview of the building then focus attention on the primary structural system and conclude with consideration of many secondary structural elements. Only non-destructive methods were used to observe the elements of the Band Shell. Not all of the elements, connections, reinforcing and fastenings are able to be examined due to finish materials such as floors, ceilings, roofing, plaster & siding therefore some assumptions were made based on visible elements and experience with similar structures of this age. The FEMA guidelines highlighted a few elements of the Band Shell that require some attention, strengthening or repair. Checklists from the FEMA guidelines are included in Appendices A-C. The items in the guidelines that are marked NC (non-compliant) have been analyzed and remediation measures have been designed into the accompanying set of drawings suitable for obtaining a building permit, soliciting bids and construction. The City of Ashland's Lithia Park Band Shell is generally in fine condition. Very few deficiencies were discovered during the structural evaluation as noted. It is recommended that the work described and specified on the accompanying drawings be performed in the near future to keep the Band Shell functioning properly. If any clarification about the study of the Band Shell's structural system is needed, please feel free to contact me. Sincerely, ~ D PR-E I CP Allan T Goffe, P.E., S.E. V ACE Engineering LLC 64 P. O. Box 231 Ashland, Oregon 97520 OR O~ 'yqY ~p 9 9, l~~N T EXPIRES 613012017 2 Allan Goffe, Protessimal SGuctural Engineer ACE engineering LLC P. 0. Box 231, Ashland, Oregon 97520 Telephone (541) 552-1417 ace ergineeringllc.com Appendix A Basic Structural Checklist Chapter 3.0 -Screening Phase (Tier 1) 3.6 Region Of Low Seismicity Checklist This Region of Low Seismicity Checklist shall be completed when required by Table 3-2. Each of the evaluation statements on this checklist shall be marked compliant (C), non-compliant (NC), or not applicable (N/A) for a Tier 1 Evaluation. Compliant statements identify issues that are acceptable according to the criteria of this Handbook, while non-compliant statements identify issues that require further investigation. Certain statements may not apply to the buildings being evaluated. For non-compliant evaluation statements, the design professional may choose to conduct further investigation using the corresponding Tier 2 evaluation procedure; the section numbers in parentheses following each evaluation statement correspond to Tier 2 evaluation procedures. Structural Components OC NC N/A LOAD PATH: The structure shall contain one complete load path for seismic force effects from any horizontal direction that serves to transfer the inertial forces from the mass to the foundation. (Tier 2: Sec. 4.3.1.1) ' V NC N/A WALL ANCHORAGE: Exterior concrete or masonry walls shall be anchored for out-of-plane forces at each diaphragm level with steel anchors or straps that are developed into the diaphragm. (Tier 2: Sec. 4.6.1.1) Geologic Site and Foundation Components C NC N/A FOUNDATION PERFORMANCE: There shall be no evidence of excessive foundation movement such as settlement or heave that would affect the integrity or strength of the structure. (Tier 2: Sec. 4.7.2.1) Nonstructural Components C NC N/A EMERGENCY LIGHTING: Emergency lighting equipment shall be anchored to prevent failing or swaying during an earthquake. (Pier 2: See. 4.8.3.2) C/ NC N/A CLADDING ANCHORS: Cladding components weighing more than 10 psf shall be anchored to the exterior wall framing at a spacing equal to or less than 6It (Tier 2: Sec. 4.8.4.1) C NC N/A GLAZING: Glazing in curtain walls and individual panes over 16 square feet in area, located up to a height of 10 feet above an exterior wadrmg surface, shall be laminated annealed or heat strengthened safety glass that win remain in the frame when cracked (Tier 2: Sec. 4.8.4.9) C NC N/A PARAPETS: There shall be no laterally unsupported unreinforced masonry parapets or cornices above the highest anchorage level with height-to-thickness ratios greater than 2.5. (Pier 2: Sec. 4.8.8.1) C NC /A CANOPIES: Canopies located at budding exits shall be anchored at a spacing of 10 It. (Tier 2: Sec. 4.8.8.2) NC N/A STAIRS: Walls around stair enclosures shad not consist of unbraced hollow clay the or unreinferced masonry. (Tier2: Sec. 4.8.10.1) C NC /A EMERGENCY POWER: Equipment used as part of an emergency power system shad be anchored (Tier 2: Sec. 4.8.12.1) 3-14 Seismic Evaluation Handbook. FEMA 310 Chapter 3.0 - Screening Phase (Tier 1) 3.7.9 Basic Structural Checklist For Building Type C2: Concrete Shear Wall Buildings With Stiff biaphragms This Basic Structural Checklist shall be completed when required by Table 3-2. Each of the evaluation statements on this checklist shall be marked compliant (C), non-compliant (NC), or not applicable (N/A) for a Tier 1 Evaluation. Compliant statements identify issues that are acceptable according to the criteria of this Handbook, while non-compliant statements identify issues that require further investigation. Certain statements may not apply to the buildings being evaluated. For non-compliant evaluation statements, the design professional may choose to conduct further investigation using the corresponding Tier2 evaluation procedure; the section numbers in parentheses following each evaluation statement correspond to Tier 2 evaluation procedures. Commentary: These buildings have floor and roof framing that consists of cast-in-place concrete slabs, concrete beams, one-way joists, two-way waffle joists, or flat slabs. Floors are supported on concrete columns or bearing walls. Lateral forces are resisted by cast-in-place concrete shear walls. In older construction, shear walls are lightly reinforced, but often extend throughout the building. In more recent construction, shear walls occur in isolated locations and are more heavily reinforced with boundary elements and closely spaced ties to provide ductile performance. The diaphragms consist of concrete slabs and are stiff relative to the walls. Foundations consist of concrete spread footings or deep pile foundations. Building System O NC N/A LOAD PATH: The structure shall contain one complete load path for Life Safety and Immediate Occupancy for seismic force effects from any horizontal direction that serves to transfer the inertial forces from the mass to the foundation. (Tier 2: Sec. 4.3. L l) O NC N/A MEZZANINES: interior memnme levels shall be braced independently from the main structure, or shall be anchored to the lateral-force-resisting elements of the main structure. (Tier 2: Sec. 4.3.1.3) C NC N/A WEAK STORY: The strength of the lateral-force-resisting system in any story shall not be less than 80"/0 of the strength in an adjacent story, above or below, for Life Safety and Immediate Occupancy (Tier 2: Sec. 4.3.2.1) C NC N/A SOFT STORY: The stiffness of the lateral-force-resisting system in any story shall not be less than 70^/ of the stiffness in an adjacent story above or below, or less than go-/. of the average stfficss of the three stories above or below for Life Safety and Immediate Occupancy. NC N/A GEOMETRY: There shall be no changes in horizontal dimension of the lateral-forge-resisting system of more than 30% in a story relative to. adjacent stories for Life Safety and immediate Occupancy, excluding one-story penthouses. (Tier 2: Sec. 4.3.2.3). D NC N/A VERTICAL DISCONTINUITIES: At vertical elements in the lateral-force-resisting system shall be continuous to the foundation. (Tier 2: Sec. 4.3.2.4) 3-64 Seismic Evaluation Handbook FEMA 310 Chapter 3.0 - Screening Phase (Tier 1) C NC N/A MASS: There shall be no change in effective mass more than 50"/o from one story to the next for Life Safety and Immediate Occupancy. (Tier 2: Sec. 4.3.2.57 C NC N/A TORSION: The distance between the story center of mass and the story center of rigidity shall be less than 20°/a of the building width in either plan dimension for Life Safety and Immediate Occupancy. (Pier 2: Sec. 4.3.2.6) AOPF% C NC N/A DETERIORATION OF CONCRETE There shall be no visible deterioration of concrete or reinforcing steel in any of the vertical- or lateral-force-resisting elements. Tier 2: Sec. 4.3.3.4) C N N/A POST-TENSIONING ANCHORS: There shall be no evidence of corrosion or spalling in the vicinity of post-tensioning or end fittings. Coil anchors shall not have been used. (Tier 2: See. 4.3.3.5) (C NC N/A CONCRETE WALL CRACKS All existing diagonal cracks in wall elements stall be less than 118" for Life Safety and 1/16" for Immediate Occupancy, shall not be concentrated in one location, and shall not form an X pattern. (Tier 2: Sec. 4.3.3.9) Lateral ForceResisting System C N N/A COMPLETE FRAMES: Steel or concrete frames classi6edas secondary components shall form a complete vertical load carrying system. (Tier 2: Sec. 4.4.1.6.1) C 1 NC N/A REDUNDANCY: The number of lines of shear walls in each principal dkectioh shall be greater than or equal to 2 for Life Safety and Immediate Occupancy. Fier 2: Sec. 4.4.2.1.1) / C /IVC N/A SHEAR STRESS CHECK The shear stress in the concrete shear a1Ls, calculated using the Quick Check procedure of Section 3.5.3.3,shaR be less than 100 psi or 2 4f for Life Safety andLnmediate Occupancy. (Tier 2: See. 4.4.2.2.1) 0. C CC V/A I PINFORCING STEEL, The ratio g steel area to gross concrete area shall be greater than 0.0015 in the vertical direction a 0.0025 " e horiminal direction for Life Safety and Immediate Ole-Occupancy. The spacing of reinforcing steel shall be equal to or less rhan 18" ff r Life Safety and Immediate Occupancy. (Tier 2: Sec. 4.4.2.2.2) ✓ Connections O NC N/A TRANSFER TO SHEAR WALLS Diaphragms shall be reinforced and connected for transfer of loads to the shear walls for Life Safety and the connections shall be able to develop the shear strength of the walls for Immediate Occupancy. (Pier 2: Sec. 4.6.2.1) NC N/A WALL REINFORCING: Walls shall be doweled into the foundation for Life Safety and the dowels shall be able to develop the strength of the walls for Immediate Occupancy. (Tier 2: Sec. 4.6.3.5) FEMA 310 Seismic Evaluation Handbook 3-65 Chapter 3.0 -Screening Phase (Tier 1) 3.7.95 SupplementalStructural Checklist For Building Type C2: Concrete Shear Wall Buildings With Stiff Diaphragms This Supplemental Structural Checklist shall be completed when required by Table 3-2. The Basic Structural Checklist shall be completed prior to completing this Supplemental Structural Checklist. Lateral Force Resisting System / C J NC N/A DEFLECTION COMPATIBILITY: Secondary components shall have the shear capacity to develop the flc=l strength of the elements for Life Safety and shall have ductile detailing for Immediate Occupancy. (Tier 2: Sec. 4.4.1.62) O NC N/A FLAT SLABS: Flat slabs/plates classed as secondary components shall have continuous bottom steel through the cohmm joints for Life Safety. Flat slabs/plates shall not be permitted for the Immediate Occupancy Performance Level (Tier 2:Scc. 4.4.1.6.3) C NC N/A COUPLING BEAMS: The stirrups in all coupling beams over means of egress shag be spaced at or less than d/2 and shag be anchored into the core with hooks of 1350 or more for Life Safetv and Immediate Occupancy. In addition, the beams shag have the capacity in shear to develop. the uplift capacity of the adjacent wag for Immediate Occupancy. (Tier 2: Sec. 4.422.3) QC NC N/A OVERTURNING: AR shear wags shag have aspect ratios less than 4 to t. Wag piers need not be considered. This statement shag apply to the Immediate Occupancy Performance Level only. (Tier 2: Sec. 4.4.224) C N N/A CONFINEMENT REINFORCING:. For shear walls with aspect ratios greater than 2.0, the boundary elements shall be confined with spirals or lies with spacing less than 8 ds. This statement shall apply to the Immediate Occupancy Performance Level only. (Tier 2: Sec._ 4.4225) C NC N/A REINFORCING. AT OPENINGS: There shall be added trim reinforcement around all wall openings. This statement shag apply to the Immediate Occupancy Performance Level only. (Tier 2: Sec. 4.4.2.2.6) C \ NC N/A WALL THICKNESS: Thickness of bearing walls shag not be less than 1/25 the minimum t\~/ unsupported height or length, nor less than 4". This statement shag apply to the Immediate Occupancy Performance Level only. (Tier 2: Sec. 4.4.227) Diaphragms NC N/A DIAPHRAGM CONTINUITY: The diaphragms shag not be composed of split-level floors. In wood buildings, the diaphragms shag not have expansion jo¢ns..(Tier 2: Sec. 4.5.1.1) C NC N/A OPENINGS AT SHEAR WALLS: Diaphragm openings immediately adjacent to the shear walk shall be less than 25% of the wall length for Life Safety and 150/6 of the wag length for Immediate Occupancy. (Tier 2: Sec. 4.5.1.4) / C NC N/A PLAN IRREGULARITIES: There shall be tensile capacity to develop the strength of the diaphragm at re-entrant comers or other locations of planuregtdarities. This statement shall apply to the Immediate Occupancy Performance Level only. (Tier 2: See. 4.5.1.7) 3-66 Seismic Evaluation Handbook FEMA 310 Chapter 3.0 - Screening Phase (Tier 1) C NC /A DIAPHRAGM REINFORCEMENT AT OPENINGS: There shall be reinforcing around all diaphragms openings larger than 5001. of the -building width in either major plan dvncnsien . This statement shall apply to the Immediate Occupancy Performance Level only- (Tier 2: Sec. 4.5.1.8) Connections C NC N/A LATERAL LOAD AT PILE CAPS: Pile caps shall have top reinforcement and piles shall be anchored to the pile caps for Life Safety, and the pile cap reinforcement and pile anchorage shag be able to develop the tensile capacity of the piles for immediate Occupancy. (Tier 2: Sec. 4.6.3.10) FEMA 310 Seismic Evaluation Handbook 3-67 Allan Goffe, Professional SmWrA Engineer ACE engineering LLC P. 0. Box 231, Ashland, Oregon 97520 Telephone (541) 552-1417 ace-engineeringllc.ow Appendix B Geologic Site Hazards and Foundations Checklist Chapter 3.0 - Screening Phase (Tier 1) 3.8 Geologic Site Hazards And Foundations Checklist This Geologic Site Hazards and Foundations Checklist shall be completed when required by Table 3-2. Each of the evaluation statements on this checklist shall be marked compliant (C), non-compliant (NC), or not applicable (N/A) for a Tier I Evaluation. Compliant statements identify issues that are acceptable according to the criteria of this Handbook, while non-compliant statements identify issues that require further investigation. Certain statements may not apply to the buildings being evaluated. For non-compliant evaluation statements, the design professional may choose to conduct further investigation using the corresponding Tier 2 evaluation procedure; the section numbers in parentheses following each evaluation statement correspond to Tier 2 evaluation procedures. Geologic Site Hazards The following statements shad be completed for buildings in regions of high or moderate seismicity. ONC N/A LIQUEFACTION: Liquefaction susceptible, saturated loose granular soils that could jeopardize the building's seismic performance shall not exist in the foundation sold at dcpas within 50 feet under the building for Life Safety and Immediate g Y Occupancy. (Tier 2: Sec. 4.7.1.1) QC NC N/A SLOPE FAILURE: The building she shall be sufficiently remote from potential earthquake-induced slope failures or rockfalls to be unaffected by such failures or shall be capable of accommodating any predicted movements without failure. (Tier 2: Sec. 4.7.1.2) <DNC N/A SURFACE FAULT RUPTURE: Surface fault rupture and surface displacement at the building she is not anficipatcd. (Tier 2: Sec. 4.7.1.3) Condition of Foundations The following statement shall be completed for all Tier I building evaluations. / C J NC N/A FOUNDATION PERFORMANCE: There shall be no evidence of excessive foundation movement such as settlement or heave that would affect the integrity or strength of the structure. (Tier 2: Sec. 4.7.2:1) The following statement shall be completed for buildings in regions of high or moderate seismicity being evaluated to the Immediate Occupancy Performance LcwL 7Th, NC N/A DETERIORATION: There shall not be evidence that foundation elements have deteriorated due to corrosion, sulfate attack, material breakdown, or other reasons in a manner that would affect the integrity or strength of the structure. (Tier 2: Sec. 4.7.2.2) Capacity of Foundations llowing statement shall be completed. for all Tier 1 building evaluations. C NC N/A POLE FOUNDATIONS: Pole foundations shall have a minmrum embedment depth of 4 R. for Life Safety and Immediate Occupancy. (Tier 2: Sec. 4.7.3.1) 3-122 Seismic Evaluation Handbook FEMA 310 Chapter 3.0 - Screening Phase (Tier 1) The following statements shall be completed for buildings in regions of high seismicity and for buildings in regions of moderate seismicity being evaluated to the Immediate Occupancy Performance Level. C NC N/A OVERTURNING: The ratio of the effective horbuntal.danension, at the foundation level of the lateralforce-resisting system, to the building height (basetheight) shall be greater than 0.6S,. (Tier 2: Sec. 4.7.32) Q NC N/A TIES BETWEEN FOUNDATION ELEMENTS: The foundation shall have ties adequate to resist seismic forces where footings, piles, and piers are not restrained by beams, slabs, or sons classified as Class A, B, or c (Tier 2: Sec. 4.7.3.3) C NC N/A DEEP FOUNDATIONS: Piles and piers shall be capable of transfcrting the lateral forces between the structure and the soil. This statement shall apply to the Immediate Occupancy Performance Level only. (Tier 2: Sec. 4.7.3.4) C /NC N/A SLOPING SITES:The grade difference from one side of the building to another shall not exceed one-half the story height at the location of embedment This statement shall apply to the Immediate Occupancy Performance Level only. (Tier 2: Sec. 4.7.3.5) FEMA 310 Seismic Evaluation Handbook 3-123 Allan Goffe, Protessanal Structural Engineer ACE engineering LLC P. 0. Box 231, Ashland, Oregon 97520 Telephone (541) 552-1 a 17 ace-engineeringllc, corn Appendix C Basic Nonstructural Component Checklist Chapter 3.0 - Screening Phase (Tier 1) 3.9.1 Basic Nonstructural Component Checklist This Basic Nonstructural Component Checklist shall be completed when required by Table 3-2. Each of the evaluation statements on this checklist shall be marked compliant (C), non-compliant (NC), or not applicable (N/A) for a Tier 1 Evaluation. Compliant statements identify issues that are acceptable according to the criteria of this Handbook, while non-compliant statements identify issues that require further investigation. Certain statements may not apply to the buildings being evaluated. For non-compliant evaluation statements, the design professional may choose to conduct further investigation using the corresponding Tier 2 evaluation procedure; the section numbers in parentheses following each evaluation statement correspond to Tier 2 evaluation procedures. Partitions C NC N/A UNREINFORCED MASONRY: Unreinforced masonry or hollmv clay toe partitions shall be braced at a spacing of equal to or less that 10 feet in regions of low and moderate seismicity and 6 feet in regions of high seismicity. (Tier 2: Sec. 4.8.1.1) Ceiling Systems C NC' (p~INTEGRATED CEILINGS: Integrated suspended ceilings at exits and corridors or weighing more than 2 m/fe shall be laterally restrained with a minimum of 4 diagonal wires or rigid members attached to the structure above at a spacing of equal to or Icss than 1211L (Tier2: Sec. 4.8.2.1) C NC /A LAY-IN TILES: Lay-in tiles wed in ceiling panels located at exkways and corridors shall be secured with clips. (Tier 2: Sec. 4.8.2.2) C NC N/ SUPPORT: The integrated suspended ceiling system shall not be used to laterally support the tops of gypsum board, masonry, or hollow clay toe partitions. Crier 2: Sec. 4:8.2.3) C NC N!A SUSPENDED LATH AND PLASTER: CeBtr[gs consisting of suspended lath and plaster or gypsum board shall be attached for each 10 square feet of area. (Tier 2: Sec. 4.824) Light Fixtures C NC N/A INDEPENDENT SUPPORT: Light fixtures in suspended grid ceilings shall be supported independently of the ceiling suspension system by a minimum of two wires at diagonally opposite comers of the fixtures. (Tier 2: Sec. 4.8.3.1) C 'NC /A EMERGENCY LIGHTING: Emergency lighting shall be anchored or braced to prevent falling or swaying during an earthquake. (Tier 2: Sec. 4.8.3.2) Cladding and Glazing C NC N/A CLADDING ANCHORS: Cladding components weighing more than 10 psf shall be anchored to die exterior wall framing at a spacing equal to or less than 6 fL for Life Safety and 4 8. for Immediate Occupancy. (Tier 2: Sec. 4:8.4.1) C NC N/ CLADDING ISOLATION: For moment frame buildings of steel or concrete, panel connections shall be detailed to accommodate a drill. ratio of 0.02 for Life Safety and 0.01 for immediate Occupancy. Crier 2: Sec. 4.8.3.2) 3-126 Seismic Evaluation Handbook FEMA 310 Chapter 3.0 - Screening Phase (Tier 1) C NC N/A MULITSTORY PANELS: For multistory panels attached at each floor level, the panels and connections shall be able to accommodate a drift ratio of 0.02 for Life Safety and 0.01 for Immediate Occupancy. (Tier 2: Sec. 4.8.4.3) C NC 13FARING CONNECTIONS: Where hearing connections are required, there shall be a minimum of two bearing connections for each wall paneL(Ticr 2: Sec. 4.8.4.4) C NC N/A INSERTS: Where inserts are used in concrete connections, the inserts shall be anchored to reinforcing steel. (Tier 2: Sec. 4.8.4.5) <~E>C NIA PANEL CONNECTIONS: Exterior cladding panels shall be anchored with a minimum of 2 connections for each wall panel for Life Safety and 4 connections for Immediate Occupancy. (Tier 2: See. 4.8.4.6) V NC N/A DETERIORATION: There shall be no evidence of deterioration or corroding in any of -the connection elements. (Tier 2: Sec. 4.8.4.7) NC N/A DAMAGE: There shall be no damage to exterior wall cladding (Tier 2: Sec. 4.8.4.8) C NC /A GLAZING: Glazing in curtain walls and individual panes over i6 square feet in area. located up to a height of 10 feet above an exterior walking surface, shall belammated annealed or hear strengthened safety glass that will remain in the frame when cracked(Tier 2: Sec. 4.8.4.9) Masonry Veneer C NC /A SHELF ANGLES: Masonry veneer shall be supported by shelf angles or other elements at each floor above the fast floor. (Tier 2: Sec. 4.8.5.1) C NC NIA TIES: Masonry veneer shall be connected to the back-up with corrosion-resistant ties. The ties shall have a spacing of equal to or less than 36" for Life Safety and 24" for Immediate Occupancy with a minimum of one tie for every 2-26 square feet (Tier 2: Sec. 4.8.5.2) C NC N/A WEAKENED PLANES Masonry veneer shall be anchored to the back-up at locations of flashing. (75er 2: Sec. 4.8.5.3) Parapets, Cornices, Ornamentation and Appendages C NC N/A URM PARAPETS: There shall be no laterally unsupported unreutforccd masonry parapets or cornices above the highest anchorage level with height-to-lhkkoess ratios greatenhan 1.5 in regions of high seismicity and 2.5 rth regions of moderate or low seismicity. (Tier 2: Sec. 4.8.8.1) C NC N/A CANOPIES: Canopies located at budding c:dts shall be anchored at a spacing 10 feet for Life Safety and 6 feet for Immediate Occupancy. (Tier 2: See. 4:8.8.2) FEMA 310 Seismic Evaluation Handbook 3-127 Chapter 3.0 - Screening Phase (Tier 1) Masonry Chimneys C NC N/ URM: No unreinforced masonry chimney shall extend above the roof surface more than twice the least dimension of the chimney. (Tier 2: Sec. 4.8.9.1) C NC N/A MASONRY: Masonry chimneys shall be anchored to the floor and roof. (Tier 2: Sec. 4.8.9.2) Stairs C NC N/A URM WALLS: Walls around stair enclosures shall not consist of unbraced hollow clay tile or unrebtforced masonry. (Tier 2: Sec. 4.8.10.1) C NC STAIR DETAILS: In moment forme structures, the connection between the stairs and the structure shall not rely on shallow anchors in concrete. Alternatively, the stair (icings shall be capable of accommodating the drill calculated using the Quick Cheek Procedure of Section 3.5.3.1 without inducing tension in the anchors. (Tier 2: Sec. 4.8.10.2) Building Contents and Furnishing NC N/A TALL NARROW CONTENTS: Contents with a height-to-depth ratio greater than 3 for Immediate Occupancy and 4 for Life Safety shag be anchored to the floor slab or adjacent walk. (Tier 2: Sec. 4.8.11.1) Mechanical and Electrical Equipment . C NC N/ EMERGENCY POWER: Equipment used as part of an emergency power system shall be mounted to maintain continued operation alter an earthquake. (Tier 2: Sec. 4.8.121) C NC N/A HEAVY EQUIPMENT. Equipment weighing over 20 lb -that is attached to ceilings, walls, or other supports 4 tL above the floor level shall be braced. (Tier 2: Sec. 4.8.12.2) Piping C NCI" N/A FIRE SUPPRESSION PIPING: Fire suppression piping shall be anchored and braced in accordance with NFPA-13 (NFPA, 1996). This statement need not be evaluated for buildings in regions of moderate seismicity being, evaluated to the Life Safety Performance Level(Tier 2: Sec. 4.8.13.1) C NC N/A FLEXIBLE COUPLINGS: Fluid, gas and fire suppression piping shall have flexible couplings . This statement need not be evaluated for buildings in regions of moderate seismicity being evaluated to the Life Safety Performance Level(Tier 2: Sec. 4.8.13.2) Hazardous Materials Storage and Distribution C N NIA TOXIC SUBSTANCES: Toxic and hazardous substances stared in breakable containers shall be restrained from falling by latched doors, shelf Ups, wives, or other methods . (Tier 2: Sec. 4.8.15.1) 3-128 Seismic Evaluation Handbook FEMA 310 VITUS CONSTRUCTION, INC. 12/8/2017 P.O. BOX 1097 GOLD HILL, OR 97525 CHANGE ORDER (541) 855-7177 (541) 855-7520 FAX CCB: 63643 CR # 1A PROJECT: Ashland Band Shelter SUBCONTRACTOR: JOB M 17-129 SUPPLIER: DATE: 12/812017 REASON FOR REQUEST: ITEM AMOUNT Demolition, removal of bathroom wall and patch column Labor wall removal (6 hrs @ $70.00) $ 420.00 Labor plumbing removal (2 hrs @ $95.00) $ 190.00 Labor patch roof removal (2 hrs @ $70.00) $ 140.00 Plaster patch $ 1,200.00 Sub total $ 1,950.00 Vitus 8% OH&P $ 156.00 Total Cost $ 2,106.00 The contract time will be (increased) (decreased) (unchanged) by 0 days. This proposal will be invalid after CHANGE ORDER NUMBER You are directed to make the above changes in this Contract only when fully signed below. The original Contract Sum was Net change by previous Change Orders The Contract Sum prior to this Change Order was The Contract sum will be(increased)(decreased)(unchanged) by this Change Order The new Contract Sum including this Change Order will be The contract time will be (increased) (decreased) (unchanged) by days. The date of completion as of the date of this Change Order therefore is Architect Contractor Owner By B" U~ BY Date: Date: / 2 _ _ / Date: VITUS CONSTRUCTION INC. 12/8/2017 P.O. BOX 1097 GOLD HILL, OR 97525 CHANGE ORDER (541) 855-7177 (541) 855-7520 FAX CCB: 63643 CR # 2A Revised PROJECT: Ashland Band Shelter SUBCONTRACTOR: JOB 17-129 SUPPLIER: DATE: 12/8/2017 REASON FOR REQUEST: ITEM AMOUNT To furnish and install drip flasings (110 I.f.) Materials $ 715.00 Labor (16 hrs @ $85.00) $ 1,360.00 Sub total $ 2,075.00 Vitus 8% OH&P $ 166.00 Total Cost $ 2,241.00 The contract time will be (increased) (decreased) (unchanged) by 0 days. This proposal will be invalid after CHANGE ORDER NUMBER You are directed to make the above changes in this Contract only when fully signed below. The original Contract Sum was Net change by previous Change Orders The Contract Sum prior to this Change Order was The Contract sum will be(increased)(decreased)(unchanged) by this Change Order The new Contract Sum Including this Change Order will be The contract time will be (increased) (decreased) (unchanged) by days. The date of completion as of the date of this Change Order therefore is Architect Contractor Owner By By- C:::~ By Date: Date: / -L _ Date: VITUS CONSTRUCTION, INC. 12/812017 P.O. BOX 1097 GOLD HILL, OR 97525 CHANGE ORDER (541) 855-7177 (541) 855-7520 FAX CCB: 63643 CR # 3 PROJECT: Ashland Band Shelter SUBCONTRACTOR: JOB M 17-129 SUPPLIER: DATE: 12/8/2017 REASON FOR REQUEST: ITEM AMOUNT Up charge if project changes to prevailing wage. Vickland and Son Struct. Steel $ 800.00 Childress Roofing Roofing $ 700.00 Bill Britton Plastering Stucco $ 1,500.00 Welburn Electric Electrical $ 200.00 Lothrop Painting Painting $ 3,800.00 Vitus Labor Carpentry $ 7,000.00 Sub total $ 14,000.00 Vitus 8% OH&P $ 1,120.00 Total Cost $ 15,120.00 The contract time will be (increased) (decreased) (unchanged) by 0 days. This proposal will be invalid after CHANGE ORDER NUMBER You are directed to make the above changes in this Contract only when fully signed below. The original Contract Sum was Net change by previous Change Orders The Contract Sum prior to this Change Order was The Contract sum will be(increased)(decreased)(unchanged) by this Change Order The new Contract Sum including this Change Order will be The contract time will be (increased) (decreased) (unchanged) by days. The date of completion as of the date of this Change Order therefore Is Architect Contractor Owner By By ( By Date: Date: I ? _ -7 Date: Kaylea Kathol From: Kaylea Kathol Sent: Wednesday, December 13, 2017 2:35 PM To: Corey Vitus Cc: Kaylea Kathol; Allan Goffe; Scott Fleury; Michael Morrison Subject: Additional Change to Bandshell - Fabrication of Mounting Plate Hello Corey, This communication is to document a conversation I had today with your foreman today about a $250 change for the fabrication of a speaker mounting plate. It appears that the speakers at the bandshell cannot be mounted as specified in the project drawings because there is a metal plate on either side of the ceiling girders, which is preventing the crew from drilling holes for anchor bolts. Scott has proposed fabrication of a wider metal mounting plate, that will extend beyond the limits of the metal barrier that flanks the girders. The estimate he gave me, from his fabrication shop, was $250. 1 am satisfied that this is a necessary change at a reasonable price. While I eventually will need an official change order request from you to attach the contract, for the time being this written confirmation will temporarily be used in lieu of a change order request, as today is the deadline for City Council packets. Thank you, Kaylea Kathol, Project Manager City of Ashland - Public Works/Engineering 51 Winburn Way, Ashland OR 97520 C: (541) 331-1144 1 0: (541) 552-2419 NOTICE: This email transmission is official business of the City of Ashland, and is subject to the Oregon Public Records Law for disclosure and retention. If you have received this message in error, please contact me at 541-552-2419. Thank you. 1 Council Business Meeting December 19, 2017: Title: Liquor License Application for Hiro Ramen From: Melissa Huhtala City Recorder Melissa. huhtala@ashland.or.us Summary: This is a request for approval of a Liquor License Application from Hiro Ramen located at 11 N. First St. #101. Actions, Options, or Potential Motions: I move to approve the Liquor License for Hiro Ramen. Staff Recommendation: Staff recommends approval of the liquor license application because the City has determined that the location of this business complies with the city's land use requirements and that the applicant has a business license and has registered as a restaurant, if applicable. The City Council recommends that the OLCC proceed with the processing of this application. Resource Requirements: N/A Policies, Plans and Goals Supported: AMC Chapter 6.32 Liquor License Review Background and Additional Information: This is an application for a new Outlet. The City has determined that all liquor license applications be reviewed by the City as set forth in AMC Chapter 6.32, which requires that a determination be made as to whether the applicant complies with the City's land use, business license and restaurant registration requirements. AMC Chapter 6.32 also requires that these applications also be reviewed by the Police Department. In May 1999, the City Council decided it would make formal recommendation on all liquor license applications. Attachments: Application Page Iof I CITY OF -AS H LA N D I OREGON LIQUOR CONTROL COMMISSION LIQUOR LICENSE APPLICATION Aoolication is being made for. CITY AND COUNTY USE ONLY LICENSE TYPES ACTIONS Date application received: ❑ Full On-Premises Sales ($402.60/yr) Change Ownership ❑ Commercial Establishment I New Outlet The City Council or County Commission: ❑ Caterer ❑ Greater Privilege ❑ Passenger Carrier ❑ Additional P ' 'I e ❑ Other Public Location ®Other ~ ( Of ~ or qty) ❑ Private Club recommends that this license be: Limited On-Premises Sales ($202.60/yr)~ ❑ Granted 11 Denied ❑Off-Premises Sales 1$1001yr) By: [I with Fuel Pumps (signature) (date) ❑ Brewery Public House ($252.60) Name: ❑ Winery ($250/yr) ❑ Other. Title: 90-DAY AUTHORITY ® Check here if you are applying for a change of ownership at a business OLCC U that has a current liquor license, or if you are applying for an Off-Premises Application ec'd Sales license and are requesting a 90-Day Temporary Authority r~ APPLYING AS: Date: ! ' ❑Umited ❑Corporation ❑(.imitedLiability MIndividuals Partnership Company 90-day authority: M Yes ❑ No 1. Entity or Individuals applying for the license: (See SECTION 1 of the Guide] o_ 5,4n ~iitrl ® p 2. Trade Name (dba): Ni ro Rh wfA 61--d 3. Business Location: I I U T'irsf it to l ~ 09 q'1S2a (number, street, rural route) 04) (county) (state) (ZIP code) 4. Business Mailing Address:_ I 1 p~~~.sf sF.. #101 t I ,.J 0 IZ °h s2t7 (p0 box, mrmber. street rural route) (dty) (state) (ZIP code) 5. Business Numbers: 360-533-4141 (Phone) (fax) 6. Is the business at this location currently licensed by OLCC? ❑1'es [311o 7. If yes to whom: Type of License: 8. Fortner Business Name: 9. Will you have a manager? MYes [No Name: (manager must N out an h&Adual History form) 10. What is the local governing body where your business is located? 61W name city or county) 11. Contact person for this application: ( SMa AiN ZI -Zf~ (Phone number(s)) ~12f Al", Sb. *Ih Me ",j 9-M4 e~alt»~t~kilylarl ee+s~ (address) (fax number) (*biaii ad&e I understand that If my answers are not true and complete, the OLCC may der Applica/ s)Signatu s) and Date: EcC S M Date ® Date MEDFORD R IONA 7 - 1$00-452-OLCC (6522) • www,oregon,govrolcc OREGON I.ICUOR Council Business Meeting December Title: Liquor License Application for J's Bistro on A From: Melissa Huhtala City Recorder Melissa. huhtala@ashland.or.us Summary: This is a request for approval of a Liquor License Application from J's Bistro on A located at 258 A Street #38. Actions, Options, or Potential Motions: I move to approve the Liquor License for J's Bistro on A. Staff Recommendation: Staff recommends approval of the liquor license application because the City has determined that the location of this business complies with the city's land use requirements and that the applicant has a business license and has registered as a restaurant, if applicable. The City Council recommends that the OLCC proceed with the processing of this application. Resource Requirements: N/A Policies, Plans and Goals Supported: AMC Chapter 6.32 Liquor License Review BacklZround and Additional Information: This is an application for a new Outlet. The City has determined that all liquor license applications be reviewed by the City as set forth in AMC Chapter 6.32, which requires that a determination be made as to whether the applicant complies with the City's land use, business license and restaurant registration requirements. AMC Chapter 6.32 also requires that these applications also be reviewed by the Police Department. In May 1999, the City Council decided it would make formal recommendation on all liquor license applications. Attachments: Application Page Iof I CITY OF -ASH LAN D OREGON LIQUOR CONTROL COMMISSION LIQUOR LICENSE APPLICATION Aonlication is being made for: CITY AND COUNTY USE ONLY LICENSE TYPES ACTIONS Date application received: Full On-Premises Sales ($402.60/yr) PgChange Ownership ❑ Commercial Establishment ❑ New Outlet The City Council or County Commission: ❑ Caterer ❑ Greater Privilege ❑ Passenger carrier Additional Pri ilege . (name of city or county) ❑ Other Public Location Other L° ❑ Private Club t recommends that this license be: mited On-Premises Sales ($202.60/yr) >f ❑ Granted ❑ Denied Noff-Premises Sales ($1001yr) By: ❑ with Fuel Pumps (signature) (date) ❑ Brewery Public House ($252.60) Name: ❑ Winery ($250/yr) ❑ Other: Title: 90-DAY AUTHORITY Check here if you are applying for a change of ownership at a business OLCC USELY that has a current liquor license, or if you are applying for an Off-Premises Application Recd by`" Sales license and are requesting a 90-Day Temporary Authority APPLYING AS: Date: Limited ❑ ©Corporation ❑ Limited Liability Individuals Partnership Company 90-day authority: ❑ Yes ❑ No 1. Entity or Individuals , applying for the license: [See SECTION 1 of the Guide] D ~ J tyul k~ l.lu) C3) © ~4 NOCO 0 2. Trade Name (dba):_ 'TS &57ic` &VI A y~I 3. Business Location: S? ~3lj Ash gw) V(ck_'O' 1"A 91;5"Ai (number, street, rural route) (city) (county) (state) (ZIP code) 4. Business Mailing Address: PD 6GXIOs Phod'1( &t i `~5) " (PO box, number, street, rural route) (city) (state) (ZIP code) 5. Business Numbers:_ `-11W ' ~e g/pfil (phone) (fax) 6. Is the business at this location fcuu fitly licensed by/OrLC~.C? (es ❑No / 7. If yes to whom: k 4 S / 1 i 1 , TT jpe of License: !L( Ai11 t~✓Yryll k'f 8. Former Business Name: w r) c7 h I'2(, l/3 Lj - i /,,Te 9. Will you have a manager? ❑Yes ~(Nlo Name: (manager must fill out an Individual History form) 10. What is the local governing body where your business is located?_ ) Wo -J, (name of city or county) 11. Contact person for this application: Cc~yr ~1 VA Oct) 574 / a k ( N.., 7/ (name) (phone number(s)) c - C' q%q C) Sy i i,,Z 39 a 't° (address) (fax number) ` mail address) I understand that if my answers are not true and complete, the OLCC may eny,mylicense application. Applicant(s) Signature( nd Date: Date C~ Date Date ) Date ' 1-800-452-OLCC (6522) • www.oregon.gov/olcc o Council Business Meeting December 19,2017_ Title: BN 2017/19 Supplemental Budget & Resolution From: Mark Welch Director of Administrative Services mark.welch@ashland.or.us Summary: It is necessary to amend the 2017/19 biennial budget in order to implement a new Housing Trust Fund, appropriate new grant revenue, payoff outstanding debt and to make a transfer of appropriations to cover unexpected expenditures. Actions, Options, or Potential Motions: I move to adopt a Resolution authorizing a 2017/19 supplemental budget. Staff Recommendation: That Council adopt the attached resolution to authorize proposed changes as defined within this report for a 2017/19 supplemental budget. Policies, Plans and Goals Supported: Administrative/Governance goal: "To ensure on-going fiscal ability to provide desired and required services at an acceptable level" Background and Additional Information: Oregon budget law (ORS 294.471) provides for mid-year amendments to the budget through the supplemental budget process. This supplemental budget contains two types of amendments: the first is merely a transfer of appropriation from one category to another which does not increase nor decreases the original budget; and the second is an additional appropriation of revenue which will increase the total budget. Because these proposed changes consist of transfers and additional appropriation of less than 10% of the budgeted fund, Oregon budget law allows adoption by Council resolution with no public hearing requirement. The City created a Housing Trust Fund but never implemented the fund due to no revenue source. With the motion to commit up to $100,000 per year from the local marijuana tax collections, the Housing Trust Fund now has an identified revenue source and will be implemented. With the implementation, the currently restricted money in the General Fund will be transferred to the new Housing Trust Fund. For additional detail, please refer to the attached "Budget Transfer Request" forms which provide a revenue source, expenditure account and brief description of the request. Page 1 of 2 CITY OF -ASHLAND The following illustrates the proposed budget changes: Transfer of appropriation only: Police Department To transfer from Asset Forfeiture for training 10,000 Housing Trust Fund To transfer balance of the housing trust into its own fund 166,351 Parks and Recreations General Fund To transfer rink related costs 5,682 Street Fund To transfer to cover early payoff of debt for Washington Street 56,315 Parks Capital Improvement Fund To transfer In cover professional services 150,000 Water Fund To transfer te cover the remainder of the Master Plan update 125,000 Total transfer of appropriation needed $ 513,348 Increase In appropriation: Fire and Rescue/Fire Revenue Reimbursementfor two conflagration fires from this summer 59,285 Community Development Housing/Revenue New revenue source for Housing Trust Fund from Local Marijuana Tax 200,000 Community Development Housing/Revenue Transfer from General Fund - Housing Trust balance 166,351 Public Works Street/Misc. Revenue Early pay off of Notes Receivable 185,014 Total Increased Appropriation $ 610,650 Attachments: Resolution adopting the supplemental budget Staff budget transfer requests & information Page 2 of 2 CITY OF ASHLAND RESOLUTION NO. 2017- A RESOLUTION ADOPTING A SUPPLEMENTAL BUDGET FOR CHANGES TO THE 2017/19 BIENNIAL BUDGET RECITALS: ORS 294.471 permits the governing body of a municipality to make a supplemental budget for one or more of the following reasons: a. An occurrence or condition which had not been ascertained at the time of the preparation of a budget for the current year which requires a change in financial planning. b. A pressing necessity which was not foreseen at the time of the preparation of the budget for the current year which requires prompt action. c. Funds were made available by another unit of federal, state or local government and the availability of such funds could not have been ascertained at the time of the preparation of the budget for the current year. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: Section 1. In accordance with provisions stated above, the Mayor and City Council of the City of Ashland determine that it is necessary to adopt a supplemental budget, establishing the following amendments: Transfers: Appropriation Resource General Fund Police Department 10,000 Transfer Out 166,351 Contingency 10,000 Community Development- Planning 166,351 $ 176,351 $ 176,351 Parks and Recreation Fund Recreation Division 5,682 Parks Division 5,682 $ 5,682 $ 5,682 Street Fund Public Works - Operations 56,315 Contingency 56,315 $ 56,315 $ 56,315 Parks Capital Improvement Fund Materials 150,000 Capital Outlay 150,000 $ 150,000 $ 150,000 Water Fund Public Works - SDC 125,000 Contingency 125,000 $ 125,000 $ 125,000 Page 1 of 2 r Additional appropriations: Appropriation Resource General Fund Fire and Rescue Department 59,285 Grant Revenue 59,285 $ 59,285 $ 59,285 Housing Trust Fund Community Development- Housing 366,351 Transfer in - (from General Fund) 166,351 Tax - Local Marijuana Tax 200,000 $ 366,351 $ 366,351 Street Fund Misc. - Notes Receivable 185,014 Public Works - Operations 185,014 $ 185,014 $ 185,014 Section 2. All other provisions of the adopted 2017-2019 BIENNIUM BUDGET not specifically amended or revised in this Supplemental Budget remain in full force and effect as stated therein. This resolution was duly PASSED and ADOPTED this day of , 2017, and takes effect upon signing by the Mayor. Melissa Huhtala, City Recorder SIGNED and APPROVED this day of , 2017. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Page 2 of 2 i 4 i I CITY O F }ASHLAND Budget Transfer Request Date: 7/12/2017 Department: Police Explanation of request: Transfer of $10,000 from Asset Forfeiture money to the training budget to pay executive level training for Warren Hensman in Boston, MA t t s' Transfer From Account Number Line Item Name Amount 990110.90500 Contingency $10,000.00 Y 6 Total Amount of Transfer $ 10,000.00 z Transfer To Account Number Line Item Name Amount 061200.606400 Training $ 10,000.00 i Total Amount of Transfer $ 10,000.00 f lf~ ~l + Requested e : ! qr t"1 Approved B : W epart ent e f CITY O F -ASHLAND Budget Transfer Request Date: 12/1/2017 I Department: Finance Explanation of request: To Transfer housing trust balance into its own fund. i i Transfer From Account Number Line Item Name Amount 092716.609115 Housing Trust Program 166,351:00 Total Amount of Transfer $ 166,351.00 Transfer To Account Number Line Item Name Amount 990110.902240 Transfer Out $ 166,351.00 i k i I y a Total Amount of Transfer $ 166,351.00 r I C~ -o2{n t - Requested By: i Approved By: epartment Head ' I A. S N ~ i , MET, \ O Budget Transfer Request ~~~~5~ RE1CF P Date: 11/30/2017 Department: Parks & Rec Commission Explanation of request: 1. Move appropriations within the capital fund to cover professional services, i advertisements, and misc. materials costs associated with capital projects. 2. Transfer funds from Operations to Recreation for ice rink costs. i Transfer From Account Number Line Item Name Amount 123000.704200 Capital Improvement Fund $ 150 000.001 121200.604100 Professional Services $5,681.50 Total Amount of Transfer $ 155,681.50 Transfer To Account Number Line Item Name Amount 123000.60* M & S Ca Improvements $ 150 000.00 125302.610210 Rink Program $ 5,681.50 Total Amount of Transfer $ 155,681.50 Re uesled B : A roved By- Department . Head CITY C317 ASHLAND Budget Transfer Request Date: 11/22/2017 Department: Finance Explanation of request: Transfer the remaining balance from Contingency to pay off the Jefferson and Washington Street Improvement Transfer From Account Number Line Item Name Amount 990260.905000 Contingency $56,315.00 Total Amount of Transfer $ 56,315.00 Transfer To Account Number Line Item Name Amount 081200.801304 Principal $ 55,785.00 081200.802304 Interest $ 530.00 Total Amount of Transfer $ 56,315.00 n Requested By:/ Approved By: D a ent Head Asp II o Budget Transfer Request `S&REG i Date: 11/30/2017 Department: Parks & Rec Commission Explanation of request: 1. Move appropriations within the capital fund to cover professional services, advertisements, and misc. materials costs associated with capital projects. 2. Transfer funds from Operations to Recreation for ice rink costs. F Q I Transfer From Account Number Line Item Name Amount 123000.704200 Capital Improvement Fund $ 150 000.00 121200.604100 Professional Services $5,681.50 Total Amount of Transfer $ 155,681.50 Transfer To Account Number Line item Name Amount 123000.60* M & S Cap Im rovements $ 150 000.00 125302.610210 Rink Program $5,681.50 Total Amount of Transfer $ 155,681.50 Requested B : A roved B : Department Head CITY C>F ASHLAND Budget Transfer Request Date: 11/22/2017 Department: Finance Explanation of request: Transfer for the remainder of Master Plan update. This was a clerical error and was intended to be put into this Biennium budget. Transfer From Account Number Line Item Name Amount 990670.905000 Contingecy 125 000.00 Total Amount of Transfer $ 125,000.00 Transfer To Account Number Line Item Name Amount 083800.604100 Professional $ 125,000.00 Total Amount of Transfer $ 125,000.00 Requested By: Approved By: f-"DepIrtment Head I CITY C OF ASHLAND Budget Supplemental Request Date: 11/14/2017 Department: Fire - Operations Division Explanation of request: The fire department sent firefiahtina apparatus and personnel to two conflagra- tion fires this summer (The Chetco Bar and Eaple Creek fires. The department has submitted for reimbursements in the amount of $59,285. We are re- questing that this unforeseen revenue be added to our overtime and technical ecaubment line items. New Revenue Account Number Line Item Name Amount Confla ration Revenue $59,285 Total Amount of Transfer $ 59,285.00 Additional Appropriations (Expense) Account Number Line Item Name Amount 071200.510310 Scheduled Overtime $44,597.00 071200.601400 Technical Supplies $ 14,688.00 Total Amount of Transfer $ 59,285.00 y a Requested By: Approved By: - De ment Head t, C I T Y O F ASHLAND Budget Supplemental Request Date: 12/1/2017 Department: Finance Explanation of request: The has started to received local madiuana tax and with this oncloing revenue source, the Citv can now reconclize the housinq trust fund. The Budget commitee motioned to dedicate $100,000 annuallv to the trust fund. The $166,351 balance is dedicated monev areviously in the General fund New Revenue Account Number Line Item Name Amount 0240 410640 $200,000 0240 490411 $ 166,351 Total Amount of Transfer $ 366 351.00 Additional Appropriations (Expense) Account Number Line Item Name Amount 096800 604100 $ 366 351.00 Total Amount of Transfer $ 366,351.00 r, Requested By: l/~/ 1 ' 1~K U, C Gt l~ l Approved By: G l✓ ment Head C I T Y O F -ASHLAND Budget Supplemental Request Date: 11/22/2017 Department: Finance Explanation of request: The Citv received an earlv pavoff from Brammo. The Citv has a debt contract with the State of Oregon for street improvements on Jefferson and Washington Street. The CitV intends to oav off the note with the State early. New Revenue Account Number Line item Name Amount 0260.480320 Notes Receivable 185,014 i Total Amount of Transfer $ 185,014.00 Additional Appropriations (Expense) Account Number Line Item Name Amount 081200.801304 Principal $ 185,014.00 I Total Amount of Transfer $ 185,014.00 Requested By: V" l l ! V~ li'~G tt Approved By:.°''7' c r~---- rtment Head Council Business Meeting December 19,2011 Title: Police Funding From: Mark Welch Director of Administrative Services mark.welch@ashland. or. us Summary: In March the Council authorized the hiring of five new Police Officers and has been working to find a sustainable funding source. Funding has been identified for two of the new Police Officers. The extended hiring process provides resources for four Police Officers in year one of the biennium. A funding source will need to be identified for the second year of the biennium. There are several questions that staff needs directions: 1. Does Council still want to hire the additional three Police Officers? 2. Does Council wish to raise additional Revenue for the Police Officers? 3. Does Council want to staff to reduce current expenditures and bring back potential reductions at a future Council Meeting? Resource Requirements: A new Police Officer costs about $110,000 per year. The cost of the three new Police Officers would be $330,000 per year, or $660,000 for the biennium. The City has resources for the first year of the biennium but require a funding source for the second year and long term. Suggested Next Steps: Staff is seeking direction on the next steps to fund the three currently authorized unfunded Police Officer Positions. Policies, Plans and Goals Supported: 24.2 Decrease tracked quality of life calls in the downtown area 24.3 Continue clearance rate of at least 30 % for all crimes in the city-wide 24.4 Maintain and reduce crime rates city-wide 24.6 Monitor and evaluate SRO program to ensure it is meeting the needs of the school district and the city 24.7 Review, report on, and seek continuous improvement where possible on response to times to calls for service Background and Additional Information: The Council authorized the hiring of five new Police Officers in March. The authorization started the recruitment process with the intent to develop funding mechanism at a later meeting date. CITY OF Page 1 of 3 -ASHLAND The five new Police Officers would increase the staffing level of each shift by one Police Officer and an additional Police Officer to serve as the School Resource Officer. The increased Police staffing has been discussed at length. For more background on the need for increased staffing please see the April 4th Council Communication. On June 20th the Council voted to increase the Property Tax rate 4.5 cents per $1,000 of assessed valuation to fund one Police Officer. In July the Council passed a resolution to create a Public Safety Support Fee of 50 cents, along with the State Marijuana Tax receipts, to fund another officer. On October 16th the Council held a Work Session to review all potential General Fund revenue sources. At that time more information on each option was requested for a later meeting. Staff has researched each option more closely. Transient Occupancy Tax Increase: The 1 %TOT increase would fund an additional Police Officer. The current rate of 9% is similar to other municipalities in the area and state. A I% increase would place Ashland slightly above the average rate of 9% but below Portland's combined rate and Bend's 10.4%. TOT law requires that 5% remain with the provider to administer the program. The remaining amount must be split 70% for tourism promotion or infrastructure with 30% unrestricted. If a TOT increase was adopted, staff is recommending that the 70% restricted be set aside for Parking Supply projects in the future, or implementation of components of the Parking Management Plan. If Council prefers the TOT increase, staff is recommending that a discussion with the Chamber of Commerce, Visitor and Convention Board, Bed and Breakfast Network and OSF be held prior to adoption in February. Public Safety Support Fee Increase: The City currently funds a Police Officer partially from a $0.50 per month Public Safety Support Fee along with State Marijuana Tax revenue. An increase of $1 per month on electric meters would fund an additional Police Officer. If Council was to adopt the Public Safety Support Fee increase, staff recommends that it be tied to our Property Tax collections. Staff proposes, that for any Property Tax collection above I% of budget, that the additional amount be used to offset the Police Officer Costs (thus lowering the Public Safety Support Fee) and to increase the Reserve Fund for future PERS increase on a 50150 distribution. Live Entertainment Ticket Tax: A potential surcharge on the ticket sales of large live entertainment. It is estimated that a 1% tax would generate more than $200,000 per year, or roughly 2 Police Officers. The large live entertainment venues benefit from improved Police staffing downtown. The large venues provide a large economic impact for the City and staff would recommend that if this tax was preferred that all impacted venues be involved in discussions on how to mitigate potential decreased ticket sales. FY 2018/19 Property Tax Increase: The increased property tax for FY 2017/18 funded one new Police Officer. The property tax rate is currently below the maximum limit and a similar increase for FY 2018/19 (beginning July 1, 2018) would fund another Police Officer. Parking Meter Fees: The Council accepted the Parking Management Plan. A portion of the Plan proposes implementing paid parking in the Downtown area. Staff analyzed the possibility of Page 2of3 CITY OF ASHLAND implementing a paid parking lot program. The paid parking lots would generate around $75,000 a year and with the cost of infrastructure would net around $25,000. Staff recommends that we do not implement a paid parking lot model at this time but continue working towards implementation of the parking management plan in a proper and timely manner. Local Gas Tax: Council did not provide support for further study of this option. Expenditures: The General Fund is limited in available expenditure reductions. The three main Departments are; Police, Fire, and Community Development. If Council provides direction that the three additional Police Officers should be funded with reduction to General Fund expenditures then staff will develop a list of potential reductions for further discussion. Current Recruitment Status One new Police Officer has been hired and another will be hired before the end of December. The Police Department has another potential Police Officer that has passed background and is awaiting funding before final hire. The last two Police Officers have been identified and are in background. If funded is identified at this meeting they can start within a month or two. Recommendation for Discussion There remain three authorized unfunded Police Officer positions. Staff has analyzed the current budget and do not feel there is any way to cut current budgets to fund the new Police Officers without impacting service levels. Staff has also analyzed all potential revenue options and want to ensure that any new fees paid for by residents are warranted and at least means possible. If Council still wishes to proceed with hiring the three unfunded Police Officers, staff is recommending increasing the TOT by 1% and also increase the Public Safety Support Fee by $2/month on electric meters. As discussed earlier, the Public Safety Support Fee will be adjusted on a semi-annual basis depending on Property Tax collection above budget. Attachments: None Page 3 of 3 CITY OF ASHLAND Council Business Meeting December 19, 2017 Title: Budget Process Ad Hoc Committee Report From: Ad Hoc Committee Members Summary: After the BN 2015/17 Budget Process it became evident that the entire budget process needed to be updated and improved. The City Council created a Budget Process Ad Hoc Committee to develop a set of recommendations to improve the entire two-year process; the "off season" as well as the formal proposed budget review and approval process ("budget season"). The Committee is optimistic that the proposed changes will improve the efficiency, communication and overall transparency of the entire process. Recommendations include: 1. Acceptance and ongoing development of the Budget Training and Reference Guide, which includes the budget process legal framework. 2. Acceptance of the expanded Budget Committee Meeting Schedule 3. Direction to staff to improve both the content, layout and format of the Budget document Actions, Options, or Potential Motions: I move to accept the recommendations of the Budget Process Ad Hoc Committee as presented. Staff Recommendation: Staff recommends acceptance of the Committee recommendations. Resource Requirements: N/A Policies, Plans and Goals Supported: 2.1 Engage community in conversations about core services, desired service levels and funding mechanisms. BacklZround and Additional Information: The Council approved the creation of the Budget Process Ad-Hoc Committee along with a formal scope of work in July of 2017. The scope of work is as follows: The ad hoc Budget Process Committee will be convened to discuss specific issues relating to the Citizen's Budget Committee's (CBC) role with the City's budget and property tax levy approval. The committee will be made up of two elected members of the CBC (Dennis Slattery and Rich Rosenthal), two citizen members of the CBC (Paula Hyatt and Garrett Furuichi), and two City staff members (Adam Hanks and Mark Welch). Each member will have voting rights. The Page 1 of 4 CITY OF -ASHLAND committee will meet at a frequency desired by the committee. Topics of discussion may include but not limited to the following: • Committee member's preferences for ground rules, rules of order, conduct of meetings, voting/reaching consensus, fact finder process, etc. • General economic projections by the Finance Officer of the possible changes in revenues, expenditures, or requirements of the next budget process. • Orientation on the budget document, the fund structure and the types of activities or programs and expenditures made from each fund in the budget. • Training on the budget committee process, calendar, expectations for members, etc. • Other issues deemed pertinent by the ad hoc Budget Process Committee. Discussion One of the major issues facing the Ad Hoc Budget Process Committee was the State and local legal framework that the Budget Committee operates within. With extensive research and participation from the City Attorney, the Ad Hoc Committee was able to define the legal framework found in the attached reference and training guide. This easy to read and understand document provides a guide for many questions raised during the past budget cycle. The document not only covers items found in State Statutes, but also provides a mechanism to address information requests during the budget season. The development of the legal framework was the primary focus of four of the six meetings held. The legal framework provides a portion of the budget committee responsibilities. There is another portion of the Budget Committee that falls under the committee coined term, the "Ashland Way". The State provides strict requirements of what the Budget Committee does but in Ashland the Budget Committee takes on additional tasks not in conflict with State regulations. The "Ashland Way" includes an ongoing discussion with the Budget Committee once the formal process is completed. In order to improve the entire budget process, which includes the "budget season" and the "off-season" the Ad Hoc Committee developed a list of meetings to be held in the "off-season": Meeting Number Month Topic 0 July Budget Process Review 1 September 8th Quarter/Last BN Budget Review 2 January 2nd Quarter Financial Report 3 February First 6 Month CIP Update 4 March New Budget Book Layout Review and Development 5 May Council Strategic Plan Goals (Presentation of the Strategic Plan Goals/Objectives) 6 June/July First Year Review 7 June/July Second Year Look Ahead 8 October Cost Allocation Plan/CIP Update/6 Year CIP 9 December Long Range Financial Plan and 6th Quarter Preliminary Review January/February Budget Kickoff/Social Gathering February Department Presentation March/April/May Budget Season Page 2 of 4 CITY OF -ASH LAN D Similar to all significant processes, a debrief is needed after the process is complete. The budget process is not set in stone but is rather a work in process that can continually be improved. As technology changes and the wishes of the City Council/Budget Committee change, the budget process should also change. It was evident that the process did not work for the BN 2017/19 Budget and the new process addresses many of those concerns. The Budget Season The Ad Hoc Budget Process Committee discussed ways to improve the Budget Committee formal process of approving and recommending the budget for adoption. The proposed process will begin in January, or early February, with a kick-off meeting and budget training. The kick-off meeting will focus on assumptions being utilized for the development of the proposed budget and also major financial challenges being considered. The . Budget Kick-off will also act as a training on the budget process and the legal framework of the upcoming process. The Ad Hoe also recommends that a relationship building social gathering be held after the training. Departments will begin the process with their presentations. The focus of the presentation will not be on the numbers for the next year budget, but rather on the current operations, future challenges, capital projects, and potential required increases for the budget. The thought behind these meetings is to provide an education on City operations to the Budget Committee and the residents of Ashland as a whole. Once the Proposed Budget is developed, the Budget Officer has proposed the following changes to the layout of the meetings that provide greater focus and improved overall flow. • Meeting #1 - Review of the entire budget at a very high level. This would be similar to the past budget message presentation. The focus would be on the major changes and challenges of the budget. • Meeting #2 - Review of the revenue. This presentation would walk the Committee through all major revenue sources, along with underlying assumptions, for all funds. The budget is built on available resources and this meeting would develop what resources are available for operations. • Meeting #3 - Personnel review for all funds and departments. This discussion would include changes to FTE's and a review of the entire Personnel Services line item. The discussion would ultimately review salary, overtime, PERS, Health Benefits, along with every other component of Personnel. The meeting may also include a discussion of debt. • Meeting #4 - Capital projects and equipment review. This discussion would be broken down by fund with analysis being provided on the funding mechanism. • Meeting #5 - All remaining available resources being allocated to Materials and Services. Depending on the length of the discussion this meeting could also include the approval of the budget and property taxes. Page 3of4 CITY OF -ASHLAND The Budget Officer feels that the best way to present the information is to break each category of the budget down and provide a separate meeting to discuss. It becomes confusing when every meeting includes a component of revenue, personnel, debt, capital and materials and services. If we are able to provide a comprehensive analysis of each component, the residents of Ashland and the Budget Committee will have a better understanding of the budget. Staff Directives The Budget Process Ad Hoc provided a list of directives to staff to accomplish within the next year. The first and most critical is improving the Budget Book. The Committee felt that the budget document needs an entire overhaul. The desire of the Committee would be that an example of the new document be provided in the first half of 2018 to allow members time to review, offer feedback, and become familiar with the new document before the budget process begins. Staff is excited at the opportunity to improve upon the budget document and provide an improved communication tool. The budget document is a major communication tool not only to the Budget Committee but also the residents of Ashland. The Ad Hoc Committee has also directed staff to develop a presentation template to be utilized by all Departments in their presentation to the Budget Committee, which should also improve the Budget presentation process and lead to an increased understanding of the budget materials. Special Thanks The Budget process drives the operations of the City. It is a critical component of what the City is able to accomplish. The members of the Budget Ad Hoc Committee deserve special recognition for addressing a major issue and working to improve the process. The members of the committee had lively debate and produced a process that will hopefully improve communication and improve the budgeting for the City of Ashland. Special thanks to Paula Hyatt and Garrett Furuichi for representing the Budget Committee in this process. Attachments: • Draft Budget Committee Training and Reference Guide Page 4of4 CITY OF ASHLAND I CITIZENS TRAINING 8 REFERENCE GUIDE i , Table of Contents Introduction Previous Biennium Budget Brief Legal Questions and Answers From City Attorney Budget Calendar Definition of Budget Terms Roberts Rule of Order Useful Website links f IMIMMON Welcome to the City of Ashland Citizens' Budget Committee! The Citizens' Budget Committee (CBC) is a critical Committee with a • • responsibility. • Ash- land CBC should have more input than those explicitly identified in State Law. For reference, the Local Budget Law can be • 1 Oregon Revised Statutes 294.305 through 294.565. for these stat- utes be • • www.leg.state.us.or. packet identifies and how they impact operation of the CB . partner The CBC is a • 1 term financial .sustainability of the City's financial position. packet includes of key information to help create a successful budgeting process. information and process be • 1 at times and desire it is the of the City Council that any uncertainties be communicated with the Budget Officer for clarification. 1 • • • - • 1• • - 1 1I- • • cess and identify ways that the process could be improved in future years. The BN 2019-21 budget pro- incorporates changes into the : approval process. PROPOSED FORMAL BUDGET COMMITTEE MEETING SCHEDULE Meeting 1 January Presentation from City Administrator, Budget Officer on current citywide operational items, and Public Works Meeting 2 January Presentation of Department status of Police, Fire and Community Development Meeting 3 End of March Budget Message and Major Changes Meeting 4 Early April Personnel Budget and Debt Service Meeting 5 Mid-April Capital Improvement Projects Meeting 6 April Materials and Services Budget, Deliberations and Potential Approval Meeting 7 Early May, Property tax and budget approval if needed Training & Reference Guide E GOVERUM NTAL BUDGETING What is a Budget? • The budget provides a financial plan for the Biennium • The budget is a policy document indicating the priorities of the City • The budget is a legal document making lawful appropriations giving the City the authority to spend public money • The budget is a public communication tool • The budget is an internal control document ensuing compliance by an annual outside audit City Staff Work Calendar The Budget is not completed during the budget committee process. The Budget is built for several months before presented for deliberations and ultimately adoption. Fund Accounting The City uses fund accounting to report on its financial position and the results of its operations. All govern- mental type funds (such as the General Fund and the Capital Improvements Fund) use the modified accrual basis of accounting. This means revenues are recognized only when they become measurable and available and expenditures are recognized when the fund liability is incurred (when the money is committed to be spent). Proprietary type funds (Sewer, Water, Electric, Etc.) use the full accrual basis of accounting. In this latter case, expenditures are recognized when the fund liability is incurred, but revenues are recognized when they are obligated to the City (which can be before they are actually received). A formal encumbrance system is utilized that commits funds for later payment and ensures that appropria- tions cannot be overspent. Re-categorizing money to an encumbrance occurs when a commitment to pur- chase is made. Encumbrance money may not be spent. Goods and services not received by the fiscal year end result the encumbrance lapsing and rolling over into the next fiscal year. An established internal control structure is used to protect assets from loss, theft or misuse and to ensure that compliance is maintained with accepted accounting principles. Budgetary control is maintained through quarterly budget review approved by the City Council. Training & Reference Guide The city maintains 20 budget funds. The relationship between the funds are listed below: M -I 911,067 $17,204,778 $129,107,220 $40,950,579 Debt Service $69,583,789 $29,326,301 $54,635,348 $16,322,956 eneral Fund Debt Service Wastewater Insurance L 556,387,024 $4,964,191 $31,964,116 $2,771,445 $1,075,435 $5,995,925 $3,186,095 Streets Electric Equipment Replacement $25,&47,832 $M,673,056 i- $7,816,595 ~Airport Cemetery Training & Reference Guide Fund Major Revenue Major Expendftures verieral Fund w r'rupui y laX • Transient Occupancy Tax Fire Franchise Fees Community Development • Charges for Services Cultural, Economic and Social Service Grants CDBG . Grant Funds Community Development Block Grant Program Reserve Fund . Other Funds Transfer • Money can be used for specific future needs Street Fund . Charges for Services • Streets and Transportation Franchise Fees needs Food and Beverage Tax Grants Airport Fund . Grants . Airport Rent Capital Improvement Fund . Food and Beverage Tax . Capital Projects (Parks) System Development Charges Charges for Services Grants Debt Service Fund . Property Tax for GO Debt Payments Bonds Charges for Services Other Funds/Department Transfer Water Fund . Charges for Services • Water Treatment and Delivery System Development Charges Wastewater Food and Beverage Tax • Sewer Treatment Charges for Services • System Development Charges Stormwater Utility Fee • Stormwater System Training & Reference Guide Fund major Revenue Major Expenditures Electric Fund Charges for Services a electric Service for ne Com- munity Central Services Charges to other Depart- • City Administrator Office ments . Finance Human Resources Information Technology City Recorder Insurance Fund . Other . Insurance Program Funds/Department Trans- fers Health Benefit Fund • Premiums . Self-Funded Health Benefit Fund Equipment Fund . Other . Savings for the Replacement Funds/Department of Large Equipment Transfer Cemetery Trust . Charges for Service . Cemetery Parks General Fund . Charges for Services . Parks (General Fund Property Tax) Charges for Services Training & Reference Guide BUDGET IN BRIEF The City of Ashland strives to deliver services essential to the community and that enhance quality of life. This document provides information to the Ashland community about where the money to finance the city comes from and how that money is spent. Ashland revenue is primarily collected from fees paid for services. Two-year comparisons of budgeted re- sources and uses follow. What do I get for my money? Below are major revenue sources that citizens and visitors often ask about. Property Tax generates approximately $23.9 million for the City. It is used to pay for expenses found in the Gen- eral Fund such as police and fire, for some of the City's principal and interest on debt and for expenses in providing parks and recreation. Voter approved levies have been used in the past for youth activities and a levy is included in this budget to assist in the operation of the library on an interim basis. Property owners within the Ashland city limits pay $4.3888 per $1,000 of assessed value for the City's share of the total property tax as- sessed. Transient Occupancy Tax (TOT) also referred to as the hotel/motel tax generates approximately $5.9 million and is used for three purposes: Economic and Cultural Development, tourism promotion and the remainder for gen- eral expenses in the General Fund such as police and fire. The Hotel/Motel rate in Ashland is currently nine per- cent (9%). The hotel/motel keeps five percent (5%) of the money collected as payment for processing. Prepared Food and Beverage Tax (F&B) also referred to as the meals tax generates approximately $5.9 million and twenty-five percent (25%) of the revenue goes toward acquisition, planning, development, re- pair, and rehabilitation of city parks. A total of $3,209,200 will be utilized for the wastewater treatment plant an- nual debt service and capital improvement projects. The remaining portion shall be paid into the Street Fund and used for street maintenance and reconstruction. The tax rate is five percent (5%) on most meals and non- alcohol beverages served or catered. In effect, the proceeds help keep sewer rates low and funds park expan- sion. This tax ends in December 2030. Electric Utility Users Tax generates approximately $6.9 million and is used to pay for expenses associated with the General Fund, such as police and fire. Utility bills include this tax which is approximately twenty-five percent (25%) of the total electric charges on the bill. Charges for Services generate approximately $116.4 million and pay for the water, wastewater, electric, and high -speed data services provided to residential, commercial and governmental properties. In general, the revenue generated is based on the base cost to provide the service and normally includes a charge that represents level of service used. Utility Fees generate approximately $4.6 million and are used to pay for operational and construction needs for transportation (streets, sidewalks, bicycle lanes, handicap access, etc.) and for storm drains (line maintenance, open ditches, sediment pond cleaning, etc.). Training & Reference Guide ,BUDGET IN BRIEF The City of Ashland strives to deliver services essential to the community and that enhance quality of life. This document provides information to the Ashland community about where the money to finance the city comes from and how that money is spent. Ashland revenue is primarily collected from fees paid for services. Two-year comparisons of budgeted re- sources and uses follow. What do 1 get for my money? Below are major revenue sources that citizens and visitors often ask about. Property Tax generates approximately $23.9 million for the City. It is used to pay for expenses found in the Gen- eral Fund such as police and fire, for some of the City's principal and interest on debt and for expenses in providing parks and recreation. Voter approved levies have been used in the past for youth activities and a levy is included in this budget to assist in the operation of the library on an interim basis. Property owners within the Ashland city limits pay $4.3888 per $1,000 of assessed value for the City's share of the total property tax as- sessed. Transient Occupancy Tax (TOT) also referred to as the hotel/motel tax generates approximately $5.9 million and is used for three purposes: Economic and Cultural Development, tourism promotion and the remainder for gen- eral expenses in the General Fund such as police and fire. The Hotel/Motel rate in Ashland is currently nine per- cent (9%). The hotel/motel keeps five percent (5%) of the money collected as payment for processing. Prepared Food and Beverage Tax (F&B) also referred to as the meals tax generates approximately $5.9 million and twenty-five percent (25%) of the revenue goes toward acquisition, planning, development, re- pair, and rehabilitation of city parks. A total of $3,209,200 will be utilized for the wastewater treatment plant an- nual debt service and capital improvement projects. The remaining portion shall be paid into the Street Fund and used for street maintenance and reconstruction. The tax rate is five percent (5%) on most meals and non- alcohol beverages served or catered. In effect, the proceeds help keep sewer rates low and funds park expan- sion. This tax ends in December 2030. Electric Utility Users Tax generates approximately $6.9 million and is used to pay for expenses associated with the General Fund, such as police and fire. Utility bills include this tax which is approximately twenty-five percent (25%) of the total electric charges on the bill. Charges for Services generate approximately $116.4 million and pay for the water, wastewater, electric, and high -speed data services provided to residential, commercial and governmental properties. In general, the revenue generated is based on the base cost to provide the service and normally includes a charge that represents level of service used. Utility Fees generate approximately $4.6 million and are used to pay for operational and construction needs for transportation (streets, sidewalks, bicycle lanes, handicap access, etc.) and for storm drains (line maintenance, open ditches, sediment pond cleaning, etc.). Training & Reference Guide Miscellaneous Licenses, Permits and other Fees and Charges (excluding interest earnings, transfers & internal payments) generate approximately $17.5 million and are used to pay for the cost of non-utility services provided such as ambulance transport, building inspections, recreation, construction services, parking, cemetery ser- vices, etc., across funds. Note: All rates and amounts shown are current and subject to change during the year or by Council action. Ex- amples of service levels and outcomes can be found throughout the Departmental section of this document. BN 2011-19 ADOPTED State Shared Carryover From Prior Year Taxes Licenses/Franchise Revenue '13% 16% 3% Fees 1% Grants 6% - - r Development Fees 1% Bonds & Loans 12% IJlilitiesJ 26% Fees & Charges other than Utility 23% BN 2015-11 ADOPTED Carryover From Prior Year 13% Taxes 15°/° LicenseslFranchse State Shared 1 Fees Revenue \ 3% 1% / DeveJopmeni Fees Grans 2% i Bonds & Loans Utilities 20% 24% Fees & Charges other than Utility 21% Training & Reference Guide WHERE THE MONEY COMES FROM Amended Adopted BN 2015-17 BN 2017-19 Taxes Property (Current) S 20,404,186 S 22,449,940 Property (Prior) 966,880 790,000 Food &Bewrage 5,506,460 5,980,765 Hote[%Wtel 5,229,810 5,880,900 UllityUsersTar. 6,298,000 6,890,470 Manluana T ax 2,000 - Waterchargefor AFR 350,000 350,000 38,757,336 42,342,075 Licenses/Franchise Fees License 443,200 498,700 Franchises 6,455,C40 7,182,730 6,898,240 7,681,430 Development Fees Perm its 1,910,425 1,660,300 Bonds & Loans Capital Improvement Protects - 3,250,000 Bond &Bankloan proceeds 26,935,724 52,836,312 Interfund Loan 2,571,200 2,100,000 29,506,924 58,186,312 Fees & Charges otherthan Utility Finance 96,948 18,498 Administration - 120,000 Police 205,000 215,000 Court 504,000 391,000 Fire &Rescue 2,087,350 2,568,000 City Recorder 21,430 25,500 Cemetery 120,000 113,000 Planning &Building 625,000 600,000 Public Works! RVTV 2,064,648 1,992,248 Electric 453,686 487,534 Parks & Recreation 11,577,930 13,207,600 Technology Payment 2,308,600 2,308,600 Rents 619,048 270,000 Internal Seruce 28,861,587 31,345,189 SDC's 592,416 731,500 Interest on Investments 369,358 457,850 Fines 410,000 857,900 Special Assessment Payments 520,000 60,000 Mscelaneou s Income 1,2CC,678 1,120,550 Transfers 2,456,240 2,831,440 55,093,919 59,721,409 Utilities Wastewater 10,767,000 11,852,000 Storm Water - 1,390,000 Street 4,165,900 3,195,895 Electric 29,539,358 32,014,707 Telecommunications 4,363,565 4,335,155 Water 13 454,600 15,874,482 62,790,423 68,662,239 Grants Federal Grants 1,692,190 2,236,244 State Grants 9,279,566 3,272,895 10,971,756 5,509,139 State Shared Revenue Cigarette Tar. 55,000 47,450 LiquorTax 610,000 703,210 Gas Tar, 2,678,800 3,580,320 3,343,800 4,330,980 Carryover From Prior Year 30,632,011 38,079,780 Total Resources S 239,904,834 S 286,173,664 Training & Reference Guide 1 ~I BN 2015-17 ADOPTED Carry Over 10% General Government Other Transactions 13% 3% Utilities 20% Other Programs 2% Payment on Bonds Public Safety and Loans 12% 5% Capital Improvement I Projects Facilities) Planning and 23% Maintenance and Community Development Operation Recreation 3% 4% 5% BN 2015-17 ADOPTED Other Transactions Carry Over g% General Government 3% 14% Utilities Other Programs _ /-22% Payment on Bonds and Loans 4% Capital Improvement Public Safety Projects 15% 18% Facilities \~Community Planning and Maintenance and Recreation Development Operation 5% 3% 4% Training & Reference Guide WHERE THE MONEY GOES ON 2015.17 BN 2017.19 General Government Mayor, Council, City Recorder S 1,324,316 S 883,043 Administration 2,423,315 2,802,663 Legal Services 961,008 1,026,146 Human Resources 716,898 902,606 Finance&Accounting 4,751,027 5,053,544 Parks Contracted Services 9,560,000 10,601,400 Insurance Services 2,019,750 2,087,950 Information Services 2,558,138 2,768,775 Health Insurance 9,830,000 11,557,301 34,144,452 37,683 428 Utilities Electric 28,825,043 31,017,690 Water 9,264,961 10,466,438 Wastewater 9,731,558 10,205,023 AFN 4,189,734 4,166,095 Storm %ater Collection 1,444,200 1,559,713 53,455,496 57,414,959 Public Safety Police Protection 13,637,535 15,248,125 Fire Protection 8,978,151 9,251,390 Forest Interface 1,672,608 1,838,171 Emergency Services 5,814,495 6,356,444 Municipal Court 1,056,830 944,095 31,159,619 33,638,225 Planning and Development Planning 2,886,423 3,508,080 Building Inspections 1,459,230 1,479,935 Engineering Seances 3,566,522 3,644,262 7,912,175 8,632,277 Community Recreation Parks Operation & Administration 8,316,829 8,619,215 Recreation Programs & City Band 2,959,180 3,325,411 Golf Course 1,104,650 1,163,100 12,380,659 13,107,726 Facilities Maintenance and Operation RoadvQys & Bikeways 5,269,024 5,768,397 Equipment Maintenance 2,908,860 3,176,472 Buildings, Grounds, Airport 2,630,993 2,547,380 Cemeteries 740,365 821,778 11,549,242 12,314,027 Capital Improvement Projects Construction and Internal Projects 48,676,399 61,932,993 Equipment 3,760,632 3,682,905 52,437,031 65,615,898 Payment on Bonds and Loans Infrastructure Im provements 10,632,044 14,680,986 Land Acquisition 800,000 - 11,432,044 14,680,986 Other Programs Economicand Cultural Development Grants 1,695,033 1,601,300 Social Services Grants 267,933 267,940 Community Development Grants 439,798 453,785 Conservation 2,116,055 2,225,778 4,518,819 4,548,803 Other Transactions Interfund Loans 2,571,200 2,100,000 Operating Transfers to Other Funds 2,456,240 2,831,440 Contingencies 2,675,570 3,533,500 7,703,010 8,464,940 Carry Over 13,212,287 30,072,395 Total Requirements S 239,904,834 $ 286,173,664 Training & Reference Guide CAPITAL IMPROVEMENT Capital Improvements Plan PLannc-d Ex>endituresDurin2BN 2017-19 Yearsl and 2 :+r t Planned Resources ' Project Total Street SDC Grants Other fees & rates Fx1road Crowng - ev en v 4 - 450,000 - S 2" S - 193 359 In m R' R' on t to 590 1.590.000 S 590,0N S S - %iin Refuse Island S 90.DD0 S S 90-000 S - S S S 90.000 East\e~-adaStreetExt-nsioa 5 - S 6.393100 S 6.494.100 S 1.194.9-0 5 3.000.000 S - S '_299-330 GrandneR-Dr,-e Ian os--meats - rI S 5 350.000 S 350-000 S S - S S 350.000 Cin-R'ii- Cht S-al Protect S - S 9310= S 93,4w S - S 911-404 Srbbtallkoadtra. S 2,120,000 S 6,937,804 S 9.057.804 S 1.7&1 0 S 3255 S 1,000,000 S -%017,19- 1 r I 1-r 2 Project Total Street SDC Grants Other tees & to Osn dac-Partial Rebtuld - \ Mcwtam Ave - H. sev to 1-5 S 910.000 S - S 940.000 S - S - S 940,000 O~edav- «'irhtman Street - my to Sisk-wu S ra S S 225.000 S S 5 5 225.000 ~-e R•buil - F sev St _ N r, N 5 tr 4,000,000 S - - S 0('r0 Os-davPartal Pe=Id - N \Etrtam t-2 - ' t: R R Tracks S 5 S CO 000 1,06-4,000 , { 11265,000 Y r l Yr 2 Project Totals Street SDC Gran" Other fm a rates F _tt S Dm tRn3 kP c 88,950 - Main Stret RRFB Iastanation - \urserv 5 tre-t & I'= Ness arenue S 75.000 S - S 75.000 5 - S - S - S 75.DD0 \in: mm -~,c- P.F.FB immUawn - Fau Oaks -*s--nue 5 - S 4HO S 40-000 S - S - S - S 40.000 413" S 1".000 S 608-950 ' 418,750 Project Total Storm SDC Grants Other fees & rtes Docc torn 5 5 S .l CC 100 000 - b to Bimcle 100 000 S 100 000 100.000 V.t -i a. v a: n I7I Yr 2 Project Total fern & rates c \ • S m,000 S ''0 - EnidemeatCmnt ---Ian oxements-TaximwRelabibawn s7onmmtal S - S 2_2.000 S 222.000 S `_22.000 S - S - l..a. t trr ~~i -r +in •r' Pro' t Totals Water rates t .t + rr° S 1 3' 35' - S - - 650,000 - S 650-000 Rmder - ReservixAmtss Road -IN C 116,000 000 E & West Fork Tran2nission in- Rehabitawa 154.500 53 5 309-000 - S -Ashland -e-51'e t 1'9000 7t0 S - K-'50 S. t a R• eno r IL1'0. 5 30,000 SubtondWater S. h• S 1708 S 1067 S 2.77; .000 S 1726.750 S - S - 5 060 50 Tr 1 Yr 2 Project Totals Water SDC Crauts Other (m & rates 25\DllaRrTreamernFlint S 1-194.00D S 1?.731.000 5 13.925.000 5 1192500 S 5 S 13.x_500 2.6-\L} Reservcir & Clam el ` Cranim Il') S 991.000 S '.190.000 5 9.391.000 S MAN 5 S S 5 2.900 Pezman¢ammFeed Facd Studs- &Imemearaion S 316000 S 116,000 S - S S S ! Subtotal Treatment Stor a 2,401,000 21.221,000 5 23,622,000 2,330,600 S - S - 400 Rater Di-+•i.utku. S-r 1 1'r 2 Project Totals Rater SI1C Grants Other fees & rata Park- states EmV tmr Lo-op Pna ncr. n-s S 6"-.OW S 96-.CCC S 2.60A000 S 5 2601.000 fJ R serwor sae 5 1 -.0Ix S - 127 - S - S - u .000 FadioRead \bte Pron= S S 126.0C-0 5 126.000 S S - 5 - S 126.000 SubtodlWater Dlstrib Lion S 764 S 2.093.0001 S 2.857.000 S S S S 1-M7-0M 1'r 1 Tr 2 Project Totals Water Other fees & rates Sn"ou Boulerwd - Cro -son Road South towards I-5 Exit I I S 175.000 S - S 175,000 S S S S 115.000 Qpa~ Street - Nevada r e 27" - - - - Grandxim SlZmst Dr to mch 131.:50 13115 - - t; 'S c - %imton t tz " c • - 15'000 357 - - - - ASir-et - istSt to 6th St S S 155.000 S 155.000 5 S 5 S U5.000 Pad••r Street - R"allzr ye to Lithia R-av S S 25.000 S 25,000 S 5 S S 25M0 Way S 300 00 5 ' Li Way- &y.-kvm;e to v Lane S 6-100 S S 200 RavLane - UtImWavtoJovave S S 6'DC S 6.;00 5 S 5 5 6.200 Subtotal MaOioeProjects $ 1AZOD S 795,950 S 1244 IN S S 5 S L214.150 Training & Reference Guide NEW INFORMATION These section will be used to provide information that relates to the next budget cycle. This would be the loca- tion of major budget assumptions. For BN 2017119 it would be as follows: The BN 2017119 Budget is being built with the following guidelines: Personal Services - In general - no new positions Material & Services - Target 0% increase Capital Outlay - Prioritize with revenue sources identified Personal Services The guidelines for the budget development is that no new positions should be added. Departments will need to identify potential revenue sources, or expenditure reductions, to fund any potential new personnel. PERS Increases: The City of Ashland is similar to other Oregon communities facing raising retirement costs. We currently estimate the retirement contributions for the City will increase $2.2 million, $1.76 million is due to rate increases on state-wide existing benefit liability. The remaining (and much smaller) portion of the increase of $450,000 is directly attributable to the City's employee based benefits. The City's Health Benefit is a self-funded plan. That means that the City pays all claims itself. The Health Benefit Fund was setup four years ago to help offset potential private insurance rate increases. The cost of running a self-funded plan is becoming a larger burden on the City. The budget will propose a "loan forgiveness" to help build a reserve. In prior years, a $525,000 loan was made in order to meet the expenses; and in each subsequent year that the loan was budgeted to be repaid, the fund balance was not sufficient to make the repayment and still meet current expenses without requiring another loan going forward. We anticipate that the health benefit increase over 15%. Salary projections are based on negotiated contract agreements for union employees, and 2% increases for non -union employees. Materials & Services To ensure a balanced budget, the BN 2017119 budget guidelines are for a 0% increase in Materials and Services. Some cost increases are unavoidable and will be identify once the budget is developed. Internal Service Charges The City has several funds that are funded through Internal Service charges. These include Central Services, Equipment Replacement, Facilities, Insurance Fund, and the Health Benefit. The constraints on the General Fund necessitate the need for a $1.7 million transfer from the Facilities Fund to not increase General Fund Internal Service Charges. The City plans to also budget for a Cost Allocation Plan to ensure proper allocation of Central Service Fund expenditures for future budgets. Training & Reference Guide I I Capital Outlay All capital projects coming forward through the budget process require an identified funding source. The Capi- tal projects, and funding sources, will be discussed during the adoption process. Budget Document Changes will be forthcoming on the format of the budget document. Part of our goal to clarify the overall budg- et process began with modifications to the document that we hope will highlight the essence of the budget and re-enforce its purpose as an essential working document for the budget committee, citizens of Ashland, and staff. Staff Presentations: A standard presentation template is being used to present departmental information in an effort to provide clear, concise and pertinent data; brief(er) presentations; and allow sufficient time for budget committee ques- tions and public hearings to be completed within the three scheduled public meetings. • Administration: John Karns • Administrative Services: Mark Welch • Police: Tighe O'Meara • Fire: David Shepard • Public Works: Paula Brown • Community Development: Bill Molnar • Electric: Tom McBartlett • IT: Dan Hendrix • AFN: Donald Kewely Major New Initiate to he included in the budget • Climate and Energy Action Plan • Downtown Strategic Parking Management Plan • Management Transitions • Additional Police Officers • Affordable Housing • Build the Reserve Fund Personnel Reductions Services Reduced or Eliminated Training & Reference Guide MAJOR FINANCIAL CHALLENGES This section will address major financial challenges heading into the next budget cycle. Training & Reference Guide IT, I~`1Vleeting 'Number Month Topic 0 July Budget Process Review 1 September 8th Quarter/Last BN Budget Review 2 January 2nd Quarter Financial Report 3 February First 6 Month CIP Update 4 March New Budget Book Layout Review and Development a 5 May Council Strategic Plan Goals (Presentation of the Strategic Plan Goals/Objectives) 6 June/July First Year Review 7 June/July Second Year Look Ahead 8 October Cost Allocation Plan/CIP Update/6 Year CIP 9 December Long Range Financial Plan and 6th Quarter Preliminary Review January/February Budget Kickoff/Social Gathering February Department Presentation March/April/May Budget Season Training & Reference Guide LEGAL FRAMEWORK Below is a series of questions and responses prompted by discussions among budget commit- tee members in the first half of 2017 and among members of the Budget Process Ad Hoc Com- mittee in the second half of 2017. h a 1. ~ r 4, a + a v J Response • To establish standard procedures for the preparation, presentation, administration and appraisal of budgets of munici- pal corporations. ORS 294.321 (1). • To provide for a brief description of the programs of a municipal corporation and the fiscal policy which is to accom- plish these programs. ORS 294.321(2). • To provide for estimation of revenues, expenditures and proposed taxes. ORS 294.321(3). • To provide specific methods for obtaining public views in the preparation of fiscal policy. ORS 294.321(4). • To provide for the control of revenues and expenditure for the promotion of efficiency and economy in the expenditure of public funds. ORS 294.321(5). • To enable the public, taxpayers and investors to be appraised of the financial policies and administration of the mu- nicipal corporation in which they are interested. ORS 294.321(6). i 2. Which budget-related tasks and powers are assigned to the budget committee? Responses a. Explicit assignments and authority i. Electing a chair and other officers, receiving the budget message, hearing patrons, setting dates for future meetings, and adopting rules of order. Local Budgeting in Oregon, p. 10 ii. Holding at least one public meeting on the budget presented by the Budget Officer and taking public comments on it. ORS 294.428. iii. Asking questions of staff and requesting additional information the budget committee "requires for the revision and preparation of the budget document." ORS 294.428(3). iv. Compelling the attendance of any City officer or employee at budget committee meetings. Id. v. Reducing or increasing estimates of resource and requirements in the budget presented by the Budg- et Officer. Local Budgeting Manual, p. 45. vi. Adding or deleting funding for specific services. Local Budgeting in Oregon, p. 11. vii. Approving the budget presented by the Budget Officer, with additions or deletions. Local Budg- eting Manual, p. 15. b. Implicit assignments and authority i. "?he budget committee is a local government's fiscal planning advisory committee." Local Budgeting Manual, p. 44. It is the "fiscal planning board of a local government." Local Budg- eting in Oregon, p. 13. ii. Individual budget committee members may ask questions of staff between committee meeti ngs. Local Budgeting in Oregon, p. 11. iii. The two-year portion of the Capital Improvements Plan included in the budget document is one of the elements of the budget the budget committee approves and forwards to the Council for consideration and final decision-making. c. Explicit or implicit proscriptions Training & Reference Guide i. The budget committee may not take any action without an affirmative vote of a majority of the total budget committee membership (a majority of those voting does not suffice). Local Budgeting in Ore- gon, p. 11; OAR 150.294-0450. H. "Generally, the budget committee's role is not to directly establish or eliminate specific pro grams or services." Local Budgeting in Oregon, p. 11. ill. "Budget committee influence on programs and services is most often exerted at a higher level, when it approves the overall budget and establishes the tax levy." Id. iv. "The budget committee does not approve new personnel, employee contracts or salary schedules, nor does it negotiate salary contracts." Id. v. Committee members may not discuss or deliberate on the budget outside of a public meeting. Local Budget Manual, p. 45. vi. The budget committee may not "discuss specifics of the ensuing year's budget at... Informal meetings until the notice requirements of the first budget committee meeting have been satisfied." Id. vii. Requests to staff for information beyond that required for revision and preparation of the budget docu- ment are inappropriate. ORS 294.428(3). See #6 below. 3. Which hudget-related tasks and powers are assigned exclusively to the City Council? Responses a. Explicit assignments and authority i. Final decision-making on all City policies and the use of City resources. AMC 2.10.090. The Council is the authorized City policy-making body, elected to establish the overall direction and priorities for City government, and is the body solely subject to voter disapproval if unacceptable decisions are made and subject to potential legal action for breach of fiduciary duty. ii. Appointing the Budget Officer. ORS 294.331. iii. Establishing 'r' standards and budget parameters" to be given to the Budget Officer to serve as "guidelines fobudget development." Local Budgeting in Oregon, p. 11. iv. Setting meeting agendas: 1.Set by Budget Officer, who is under the City's Executive Officer. ORS 294.331. v. Adoption of final budget after public hearing and deliberation on the budget document approved by the budget committee. bRS 294.453-.456. vi. Adoption of a supplemental budget in certain circumstances. ORS 294.471-.473. vii. Transferring appropriations between funds when authorized by ordinance or making inter- fund loans. ORS 94.463 and .468. b. Implicit assignments and authority i. Any duties or authority not expressly assigned to the budget committee. ii. Deciding whether to invite appointed budget committee members to participate in the Council's budget hearing. Local Budgeting Manual, p. 55. iii. Deciding whether to reconvene the budget committee in the Off-Season. Id. at p. 45. iv. Establishing the 6-year Capital Improvement Plan Training & Reference Guide 4. What is the role of the Budget Officer and staff. Responses a. The budget officer, or the person or department designated by charter and acting as budget officer, shall prepare or supervise the preparation of the budget document. The budget officer shall act under the direction of the executive officer of the municipal corporation, or where no executive officer exists, under the direction of the governing body. ORS 294.331. b. Preparation of the budget document consistent with the requirements and definitions of ORS 294.333- 398. c. Submittal of the budget message, which, according to ORS 294.321, must: a. Explain the budget document; b. (Contain a brief description of the proposed financial policies of the municipal corporation for the ensuing year or ensuing budget period; c. Describe in connection with the financial policies of the municipal corporation, the important features of the budget document; d. Set forth the reason for salient changes from the previous year or budget period in appropria- tion and revenue items; e. Explain the major changes in financial policy; and f. Set forth any change contemplated in the municipal corporation's basis of accounting and ex- plain the reasons for the change and the effect of the change on the operations of the munici- pal corporation. 5. Do budget committee members have a legally enforceable obligation to act in the best interests of Ashland citizens [fiduciary duty]? Response No Points and Authorities a. Budget committee members are to approve a budget (recommend a budget to the City Council), which the City Council can then adopt with or without revisions. It is therefore only the City Coun- cil members who make final decisions and who conceivably could be held liable for improper ex- penditures authorized in an adopted budget. 6. Do individual budget committee members have unlimited authority to compel production _ of information? Response No Points and Authorities a. The budget committee may not take any action without an affirmative vote of at least eight members (a majority of those voting does not suffice). Local Budgeting in Oregon, p. 11; OAR 150-294-0450. b. Information the budget committee "requires for the revision and preparation of the budget docu- ment" are appropriate (ORS 294.428(3, and the public hearing on the budget is to afford "an oppor- tunity to ask questions about and comment on the budget document (ORS 294.426(i)(b)) [Emphasis added]. Questions or comments on topics other than the budget document could be ruled out of or- der for lack of relevance. c. Individual budget committee members may ask questions of staff between committee meetings. i. "It could be very helpful and a courtesy to other budget committee members if inquiries are not restricted to committee meetings. Checking with the administrator and/or budget officer between meetings allows members to explore budget items of interest in greater detail than might be practical during committee meetings. Questioning also assists the administration/ budget officer by giving an indication of concerns, making it possible to highlight issues that may be of interest to the entire budget committee." Local budgeting in Oregon, P. 11. Training & Reference Guide M 1. Must the budget document's estimates of expenditures for personal services include classification, salary and FTE for each position? Response No Points and Authorities a. "Estimates of expenditures for personnel services must include for each organizational unit or activity the total budgeted cost of all officers and employees and the number of related full-time equivalent positions. Upon request, a municipal corporation shall make available the current salary of each officer and employee, other than persons who receive an hourly wage or who are hired on a part-time basis. For the purpose of preparing a list of salaries, employees of like classification and salary range may be listed by the number of employees, the highest and lowest salaries and the total amount of all salaries, in each salary range." ORS 294.388(5) [Emphasis added]. , Does Oregon's i.l l u et Law assign to dU t committee any duties or io a to take official actions during the 20 to 21 month period between City Council adoption of one biennium's budget and the budget committee's first meeting on the budget docu- ment for the ensuing biennium ("Off-Season"I? Response No Points and Authorities a. Oregon statutes ascribe roles to the budget committee solely for the 3 to 4 month period between the budget committee's first meeting on the budget document for the upcoming biennium and City Coun- cil adoption of the budget for that biennium ("Budgeting Season"): Once the budget committee has approved the budget, it has completed all of the duties required of it by Local Budget Law." Local Budgeting Manual, p. 46. b. Only the Council has statutory authority to take official actions in the Off-Season with respect to the budget (such as, adoption of a supplemental budget, transfers of appropriations, or post-budget- adoption local option taxes) ORS 294.463-.476. The budget committee is not mentioned in these stat- utory provisions concerning Off-Season official budgetary actions. c. "[S]ome local governments have a policy of including the budget committee in other parts of the pro- cess, such as adopting a supplemental budget. These are local policy decisions that are up to the dis- cretion of the governing body." Local Budgeting Manual, p. 46. d. Only the Council has the authority to convene an Off-Season budget committee meeting and deter- mine its purpose: Local Budgeting Manual says at page 45, `The budget committee may meet from time to time throughout the year at the governing body's discretion for purposes such as training; "Local Budgeting in Oregon, at page 11, says "The budget committee may be reconvened by the gov- erning body at a later date [after budget adoption] in the event the financial conditions in the district change. A meeting for this reason is called at the discretion of the governing body and is not a require- ment of the local budget law." (Emphasis added in each excerpt) e. Local Budgeting Manual addresses Off-Season meeting topics: (1) At page 15, it says, "The budget committee is allowed to meet for training and advisory reviews throughout the year, but the budget may not be deliberated before the first meeting for which notice is published." At page 45, the Manu- al says, "Take care not to discuss specifics of the ensuing year's budget at these informal meetings until the notice requirements of the first budget committee meeting have been satisfied." Training & Reference Guide 9. During Off-Season, may a quorum of the budget committee members meet and discuss budget matters? Response Yes, as long as the gathering is a properly noticed public meeting convened by the Council and as long as the discussion is not about the specifics of the budget for the ensuing biennium. See #14 below. Points and Authorities a. The Council has exclusive authority to convene an Off-Season budget committee meeting. See #8.b., c. and d. above. b. The meeting may not be about the specifics of the budget for the ensuing biennium. See #8.e. above 10. During Off-Season, may the person who chaired the budget committee during the pre- ceding Budgeting Season convene a budget committee meetingP Response No, because the Council has exclusive authority to convene a budget committee meeting during the Off-Season. Points and Authorities Points and Authorities: a. The Council has exclusive authority to convene an Off-Season budget committee meeting. See #8.b., c. and d. above. b. Because the budget committee has no capacity to take any official action in the Off-Season (see #8.a. and b. above), the chair of the budget committee has no authority to take any official action. c. Oregon statutes direct that selection of a budget committee chair is to occur at the first meeting of the budget committee for any particular Budgeting Season, which can only occur when it first receives the budget document for the ensuing biennium. ORS 294.414(9) and 294.426(1)(a). As there is no statuto- ry provision governing Off-Season replacement of a budget committee chair who has resigned or whose term has lapsed during the Off-Season, those statutory provisions suggest that chairmanship of the budget committee for any particular Budget Season terminates once that season is over. d. ORS 294.428(1) says, "in addition to the meetings held under ORS 294.426(1) [which prescribes the requirements for meetings held for receiving the budget and providing opportunities for public ques- tions and comments on the budget document], the budget committee may meet from time to time at its discretion." This is in a section titled "Budget Committee Hearings; Approval of the Budget Docu- ment." That section addresses only meetings concerning approval of the budget document; it is not a grant of general discretion to the budget committee to convene meetings at any time. If it were a grant of general discretion to convene meetings, there would be no need for the strictures in ORS 294.426 or the statements in the Local Budgeting Manual and Local Budgeting in Oregon that meetings of the budget committee in the Off-Season are at the discretion of the governing body. See #8.c. and d. above. 11. During Budgeting Season, may the appointed budget committee members meet on their own for the purpose of discussing the budget? Response No Points and Authorities a. "The budget committee members cannot get together in person, by telephone, or email before the advertised meeting to discuss the budget. All budget discussions must be held at public meetings." Local Budgeting in Oregon, p. 2. b. "Committee members may not discuss or deliberate on the budget outside of a public meeting." local Budg- eting Manual, p. 45. " c. "A gathering of less than a quorum of the committee, subcommittee, advisory group or other governing body is not a'meeting' under the Public Meetings Law. However, while a gathering of less than a quorum is not a `meeting 'members of the governing body should not gather as a group or groups composed of less than a quorum for the purpose of conducting business outside the Public Meetings Law. Such a gathering creates the appearance of impropriety and runs contrary to the policy of the Public Meetings Law which supports keeping the public informed of the deliberations of governing bodies." Oregon Attorney General's Public Meetings Manual, p. 304. Training & Reference Guide d. If those gathering at such a meeting were to constitute a quorum of the budget committee, the meeting would have to be open to the public. OR294.428(2). But since the 7 appointed budget committee members would not constitute a quorum, the only allowable official action at such a gathering would be approval of a motion to adjourn. 12. During Off-Season, may less than a quorum of the budget committee gather on their own for the purpose of discussing budget matters [other than budget specifics for the budget for the ensuing biennium]? Responses (1) Yes, if the less-than-a-quorum members of the budget committee constitute a public body (for example, the group is the Council itself or has been appointed by the Council to be a subcommittee or separate advisory group) and the gathering meets public meeting requirements, including public notice; (2) No, if the purpose is to discuss specifics of fhe budget for the ensuing biennium; but otherwise such of less than a quorum of budget committee mem- bers is permissible. g ' gathering Points and Authorities for Response #2 to Question 12: a. While the Oregon Attorney General generally advises against such gatherings (see 11.b. above), the policy of keeping the public informed of the deliberations of governing bodies would not be violated by a gathering of less•than-a-quorum of public body that has no authority or power in the Off-Season to take any official action. Analogy: The Ashland Building Board of Appeals exists to comply with state statute and is activated only when official action is called for. During the time this board in deactivated status (has no duties to perform), no one could reasonably perceive discussions of less than a quorum of its members as deliberations of a public body. b. "Committee members may not discuss or deliberate on the budget outside of a public meeting." Local Budg- eting Manual, p. 45. It is debatable whether this proscription applies even to Off-Season discussions: Such a discussion among less than a quorum of budget committee members in Off-Season surely would be a pro- tected exercise of the First Amendment freedom of association, unless it strayed into deliberations on specif- ics of the ensuing biennium's budget document not yet formulated by staff. 13. During either Budget Committee Season or the Off-Season, at meetings of the City Coun- cil, are Councilmembers limited as to budget issues that can be discussed? [More point- edly, do the limitations on less-than-a-quorum budget committee members' budget di cussions, as described in Questions 9 and 12 above, also apply to the elected budget committee members, that is to Council members?] Response No Points and Authorities a. "Standards and budget parameters established by the governing body give the budget officer and ad- ministrative staff general guidelines for budget development." Local Budgeting in Oregon, p. 11. The budget officer needs to know what policy initiatives having fiscal impacts the Council is likely to under- take in the next biennium - which can only be determined after Council discussion of priorities among potential initiatives. b. The budget committee has no statutory or Charter-established role in formulation of the budget or in overseeing adherence to it or revisions to it after its initial adoption. See 1.a.-e. above. Councilmem- bers, in contrast, would be derelict if they did not oversee adherence to the current biennium's budget or if they stopped developing policies and Training & Reference Guide ~I 14. What topics of discussion are appropriate for budget committee discussion during the Off-Season? Responses a. Appropriate topics (per Oregon Department of Revenue) i. Training on the budget committee process, calendar, expectations for committee members, etc. ii. Committee members' preferences for ground rules, rules of order, conduct of meetings, voting/ reaching consensus, fact-finding process, etc. iii. Orientation on the organization and its various departments, programs, staffing, etc., and on the activities or services provided by each. iv. General discussion of vision and goals, spending priorities, or philosophy on how to allocate scarce resources or make trade-off decisions as to which programs get funded and which don't. v. General economic projections by the finance officer of possible changes in resources or require- ments expected next year. vi. Any and all discussion of the current year budget or prior year budget, including what, in general, might be done differently next year. b. Inappropriate topics (per Oregon Department of Revenue) i. Specific estimates or appropriation amounts associated with any fund or line item, resource or re- quirements. ii. The question of whether to fund specific programs or expenditures. iii. The question of whether to impose any tax levy, or the amount of any levy. 15. For purposes of having common vocabulary for discussing the role of the budget com- mittee, what would be a clear working definition of "Budget Committee Season" P Response "Budget Committee Season" means the period of time when the budget committee has authority under state law to take official action. This period beElins at the first meeting of the budget committee, which can only occur when the committee sitting en banc first receives from the Budget Officer the budget document for the ensuing biennium - - typically in April or May of the second year of any biennium - and the dafe the City Council adopts the final budget for that biennium. Between one Budget Committee Season and the next ("Off-Season"), only the City Council has statu- tory authority to take official actions with respect to the budget or to convene the budget committee for any purpose. Points and Authorities a. See #8.a, b., and d. above 16. For purposes of having common vocabulary for discussing the role of the budget com- mittee, what ooh as clear w du f "O el . ai Season " Responses "A Public meeting of the Budget Committee" means a gathering of a quorum of the budget committee membership at which discussion of City budget matters is intended to or is likely to occur. Points and Authorities a. "The Public Meetings Law applies to all meetings of a quorum of a governing body for which a quorum is required in order to make a decision or to deliberate towards a decision on any matter." Oregon Attorney General's Public Meet- ings Manual, p.122. b. "The purpose of the meeting triggers the requirements of the law.... [A] purpose to deliberate on any matter of official policy or administration may arise [even] during a social gathering and lead to a violation. Members constituting a quorum must avoid any discussions of official business during such a gathering." Id., at 123 (italics in original Training & Reference Guide c. "Even if a meeting is for the sole purpose of gathering information to serve as the basis for a subsequent decision or recommendation by the governing body, the meetings law will apply." 38 Op Atty Gen 1471, 1474 (1977); Oregonian Publishing Co. v. Board of Parole, 95 Or. App 501, 506 (1989). d. See also Questions 11 and 12 above. 16. For purposes of providing budget committee members relevant information and having commonly understood procedures, what would be a clear protocol for individual budget committee members to utilize in seeking from staff information related to the City Budget? Responses a. Rationale for adopting such a protocol: i. Minimization of misunderstandings. ii. It could be very helpful and a courtesy to other budget committee members if inquiries are not restricted to committee meetings. Checking with the administrator and/or budget officer between meetings allows members to explore budget items of interest in greater detail than might be prac- tical during committee meetings. Questioning also assists the administration/ budget officer by giving an indication of concerns, making it possible to highlight issues that may be of interest to the entire budget committee." Local Budgeting in Oregon, p. 11. b. Requests for information during Budget Committee Season: i. Scope of topics: Information required for revision and preparation of the budget document. ORS 294.428(3). ii.Sequence 1. Budget committee member makes written request to Budget Officer/Department Director for information within the scope of topics described in b.i above. 2. Budget Officer/Department Director notifies City Administrator of request. 3. Budget Officer/Department Director and City Administrator preliminarily determine (1) whether scope is appropriate and (2) whether response will require less than 2 hours of staff time. a. If both preliminary determinations are affirmative, Budget Officer/Department Director ar- ranges to have response prepared and delivered to requester and the other budget com- mittee members. b. If either of the two preliminary determinations is negative, City Administrator notifies Chair, asking for a decision on whether to comply with request. Then i. If decision can wait until upcoming meeting of Budget Committee, Chair should include it on the agenda for the upcoming meeting and the determination should be made by ma- jority vote of the Budget Committee; or ii. If decision cannot wait until upcoming meeting of Budget Committee, Chair should make the determination on whether to comply with request. Training & Reference Guide c. Requests for information during Off-Season: L Scope of topics: 1. Topics related to fiscal planning, excluding any specifics about the ensuing biennium budget. 2. See #14 above. ii.Sequence 1. Budget committee member makes written request to City Administrator for information within the scope of topics described in c.i above. 2. City Administrator preliminarily determines (1) whether scope is appropriate and (2) whether, in light of other current priorities, responding to request warrants required staff time. a. If both preliminary determinations are affirmative, City Administrator arranges to have re- sponse prepared and delivered to requester and sent to the other budget committee mem- bers. b. If either of the two preliminary determinations is negative, City Administrator notifies Mayor, asking for a decision on whether to comply with request. Then L If decision can wait until upcoming meeting of City Council, Mayor should include it on the agenda for the upcoming meeting and the determination should be made by majori- ty vote of the City Council. ii. If decision cannot wait until upcoming meeting of City Council, Mayor should make the determination on whether to comply with request Training & Reference Gui` ; DEFINITIONS Accrual basis. Method of accounting recognizing transactions when they occur without regard to cash flow timing [ORS 294.311(1)]. Activity. That portion of the work of an organizational unit relating to a specific function or class of functions, a pro- ject or program, a subproject or subprogram, or any convenient division of these [ORS 294.311(2)]. Adopted budget. Financial plan that is the basis for appropriations. Adopted by the governing body (ORS 294.456, re- numbered from 294.435). Ad valorem tax. A property tax computed as a percentage of the assessed value of taxable property. Agent. Generally, someone who is authorized to act for the local government, or who can make commitments or sign contracts in the name of the local government. Agency is the fiduciary relationship that arises when one person (a 'principal') manifests assent to another person (an 'agent') that the agent shall act on the principal's behalf and subject to the principal's control, and the agent manifests assent or otherwise consents so to act. Appropriation. Authorization for spending a specific amount of money for a specific purpose during a fiscal year. It is based on the adopted budget, including supplemental budgets, if any. It is presented in a resolution or ordinance adopted by the governing body [ORS 294.311(3)]. Approved budget. The budget that has been approved by the budget committee. The data from the approved budget is published in the Financial Summary before the budget hearing (ORS 294.428, re- numbered from 294.406). Assessed value. The value set on real and personal property as a basis for imposing taxes. It is the lesser of the proper- ty's maximum assessed value or real market value. Assessment date. The date on which the value of property is set, January 1(ORS 308.210, 308.250). Audit. The annual review and appraisal of a municipal corporation's accounts and fiscal affairs conducted by an ac- countant under contract or the Secretary of State (ORS 297.425). Audit report. A report in a form prescribed by the Secretary of State made by an auditor expressing an opinion about the propriety of a local government's financial statements, and compliance with requirements, orders and regulations. Balanced budget. A budget in which the resources equal the requirements in every fund. Bequest. A gift by will of personal property; a legacy. Biennial budget. A budget for a 24-month period. Billing rate. The tax rate used to compute ad valorem taxes for each property. Budget. Written report showing the local government's comprehensive financial plan for one fiscal year. It must include a balanced statement of actual revenues and expenditures during each of the last two years, and estimated revenues and expenditures for the current and upcoming year [ORS 294.311(5)]. Budget committee. Fiscal planning board of a local government, consisting of the governing body plus an equal number of legal voters appointed from the district (ORS 294.414, renumbered from 294.336). Budget message. Written explanation of the budget and the local government's financial priorities. It is prepared and presented by the executive officer or chairperson of the governing body (ORS 294.403, re- numbered from 294.391). Person appointed by the governing body to assemble budget material and information and to physically 28 prepare the proposed budget (ORS 294.331). Budget period. For local governments on a biennial budget, the 24-month period beginning July 1 and ending June 30 of the second following calendar year. See also "Fiscal year." Budget transfers. Amounts moved from one fund to finance activities in another fund. They are shown as expenditures in the originating fund and revenues in the receiving fund. Capital outlay. Items which generally have a useful life of one or more years, such as machinery, land, furniture, equip- ment, or buildings [ORS 294.388(4), renumbered from 294.352(4)]. Capital projects fund. A fund used to account for resources, such as bond sale proceeds, to be used for major capital item purchase or construction [OAR 150-294.352(1)]. Cash basis. System of accounting under which revenues are accounted for only when received in cash, and expendi- tures are accounted for only when paid [ORS 294.311(9)]. Category of limitation. The three categories in which taxes on property are placed before the constitutional limits can be tested-education, general government, excluded from limitation (ORS 310.150). Consolidated billing tax rate. The combined total of the billing rates for all taxing Districts in a code area. Does not in- clude the billing rate for any urban renewal special levies or non-ad valorem taxes, fees, or other charges. Constitutional limits. The maximum amount of tax on property that can be collected from an individual property in each category of limitation (Art. XI, sect. 11b, OR Const.). Debt service fund.A fund established to account for payment of general long-term debt principal and interest [OAR 150-294.352(1)]. Devise. A of real property by will of the donor of real property. Division of tax. Division of tax refers to the process of, and revenue from, apportioning tax to urban renewal agencies based on the relationship of the excess to frozen value, also known as tax increment revenue. Double majority. A term that refers to an election where at least 50 percent of the registered voters eligible to vote in the election cast a ballot and more than 50 percent voting approve the question. Encumbrance. An obligation chargeable to an appropriation and for which part of the appropriation is reserved [ORS 294.311(13)]. Enterprise fund. A fund established to account for operations that are financed and operated in a manner similar to private business enterprises. They are usually self-supporting. Examples of enterprise funds are those for water, gas, and electric utilities, swimming pools, airports, parking garages, transit systems, and ports [OAR 150-294.352(1)-(A)]. Estimate. (v) To arrive at a rough calculation or an opinion formed from imperfect data. (n) The resulting amount. Excluded from limitation category. The category for taxes used to pay principal and interest on exempt bonded indebt- edness [ORS 310.150(3)(D)]. Exempt bonded indebtedness. 1) Bonded indebtedness authorized by a specific provision of the Oregon Constitution, or 2) bonded indebtedness issued as a general obligation on or before November 6, 1990, incurred for capital construc- tion or capital improvements, or 3) bonded indebtedness issued as a general obligation after November 6, 1990, in- curred for capital construction or capital improvements with the approval of the electors of the local government. Bonded indebtedness issued to refund or refinance any bonded indebtedness described above is also included [ORS 29 310.140(7)]. Existing urban renewal plan. An existing urban renewal plan is defined as a plan that existed in December 1996, and, 1) chose an option and, 2) established a maximum amount of indebtedness by July 1998 and has not been amended to increase the land area or maximum indebtedness [ORS 457.010(4)(x)]. Expenditures. Total amount incurred if accounts are kept on an accrual basis; total amount paid if accounts are kept on a cash basis [ORS 294.311(16)]. Fiscal year. A 12-month period to which the annual operating budget applies. The fiscal year is July 1 through June 30 for local governments [ORS 294.311(17)]. Fund. A fiscal and accounting entity with self- balancing accounts to record cash and other financial resources, related liabilities, balances and changes, all segregated for specific, regulated activities and objectives. Fund balance. The fund equity of government funds. Fund type. One of nine fund types: General, special revenue, debt service, capital projects, special assessment, enter- prise, internal service, trust and agency, and reserve [OAR 150-294.352(1)-(A)]. General fund. A fund used to account for most fiscal activities except for those activities required to be accounted for in another fund [OAR 150-294.352(1)-(A)]. General government category. The category for taxes used to support general government operations other than schools that are not for the purposes of paying exempt bonded indebtedness [ORS 310.150(2)]. Good Faith. The standard for estimating budget re- sources and requirements. Good faith estimates are reasonable and are reasonably likely to prove accurate, based on the known facts at the time.. Governing body. County court, board of commissioners, city council, school board, board of trustees, board of direc- tors, or other managing board of a local government unit [ORS 294.311(20)]. Grant. A donation or contribution of cash to a governmental unit by a third party which may be made to support a specified purpose or function, or general purpose [ORS 294.311(21)]. Interfund loans. Loans made by one fund to another and authorized by resolution or ordinance (ORS 294.468, renum- bered from 294.460). Internal service fund. A fund used to account for fiscal activities when goods or services are provided by one depart- ment or agency to other departments or agencies on a cost-reimbursement basis (ORS 294.343, renumbered from 294.470). Legal opinion. The opinion as to legality rendered by an authorized official, such as the Oregon attorney general or city attorney. Levy. (v) To impose a property tax. (n) Ad valorem tax certified by a local government. Local government. Any city, county, port, school district, education service district, community college, special district, public or quasi-public corporation (including a municipal utility or dock commission) operated by a separate board or commission; a municipality or municipal corporation under ORS 294.311(26). Local option tax. Voter-approved taxing authority that is in addition to the taxes generated by the permanent tax rate. Local option taxes can be for general operations, a specific purpose or capital projects. It is limited to five years unless it is for a capital project, then it is limited to the useful life of the project or 10 years, whichever is less [Art. XI, section 30 11(4)]. Maximum assessed value (MAV). A constitutional limitation on the taxable value of real or personal property. It can increase a maximum of 3 percent each year. The 3 percent limit may be exceeded if there are qualifying improvements made to the property, such as a major addition or new construction (OAR 308.146). Maximum authority. The limitation on the amount of revenue an existing urban renewal plan may raise from the prop- erty tax system [ORS 457.435(3)]. The assessor calculated this amount for the 1997-98 tax year for each existing plan based on the taxes each urban renewal plan area would have been entitled to prior to Measure 50. This amount is ad- justed each year based on the growth of excess value in the plan area. Maximum indebtedness. The amount of the principal of the indebtedness necessary to complete an urban renewal plan. This does not include indebted- ness incurred to refund or refinance existing indebtedness [ORS 457.010(10)]. It is specified in dollars and cents and based on good faith estimates of the scope and costs of the anticipated project or projects. All existing plans are required to have an ordinance which establishes a maximum indebtedness. Measure 5. A constitutional amendment (Art. XI, section 11b) passed in 1990 that limits the amount of operating tax that can be imposed on a property to $5 per $1,000 of real market value for education and $10 per 1,000 for general government. Measure 50. A constitutional amendment (Art. XI, section 11) passed in 1997 that limits the growth in a property's maximum assessed value to 3% per year. It also limits a local government's taxing authority by creating permanent rate limits. Net working capital. The sum of the cash balance, accounts receivable expected to be realized during the ensuing year, inventories, supplies, prepaid expenses less current liabilities and, if encumbrance method of accounting is used, re- serve for encumbrances'[ORS 294.311(27)]. Object classification. A grouping of expenditures, such as personnel services, materials and services, capital outlay, debt services, and other types of requirements [ORS 294.311(29)]. Operating rate. The rate determined by dividing the local government's operating tax amount by the estimated as- sessed value of the local government. This rate is needed when a local government wants to impose less tax than its permanent rate will raise. Ordinance. A formal legislative enactment by the governing board of a municipality. Organizational unit. Any, administrative subdivision of the local government, especially one charged with carrying on one or more specific functions (such as a department, office or division) [ORS 294.311(31)]. Personnel services expenses. Expenses related to the compensation of salaried employees, such as, health and acci- dent insurance premiums, Social Security and retirement contributions, civil service assessments. Permanent rate limit. The maximum rate of ad valorem property taxes that a local government can impose. Taxes gen- erated from the permanent rate limit can be used for any purpose. No action of the local government or its voters can change a permanent rate limit. Principal act. The Oregon Revised Statutes that de- scribe how a certain type of municipal corporation is formed, se- lects its governing body, the powers it may exercise and the types of taxing authority that its voters may authorize. Prior years' tax levies. Taxes levied for fiscal years preceding the current one. Program. A group of related activities to accomplish a major service or function for which the local government is re- 31 sponsible [ORS 294.311(33)]. Program budget. A budget based on the programs of the local government. Property taxes. Ad valorem tax or another tax on property certified to the county assessor by a local government unit. Proposed budget. Financial plan prepared by the budget officer. All funds must balance. it is submitted to the public and the budget committee for review. Publication. Public notice given by publication in a newspaper of general circulation within the boundaries of the local government; mailing through theU.S. Postal Service by first class mail to each street ad- dress within the boundaries of the local government; or hand delivery to each street address within the boundaries of the local government [ORS 294.311(35)]. Real Market Value (RMV). The amount in cash which could reasonably be expected by an informed seller from an in- formed buyer in an arm's-length transaction as of the assessment date. For most properties, the value used to test the constitutional limits (ORS 308.205). Reserve fund. Established to accumulate money from year to year for a specific purpose, such as purchase of new equipment (ORS 294.346, renumbered from 294.525). Resolution. A formal order of a governing body; lower legal status than an ordinance. Resource. Estimated beginning funds on hand plus anticipated receipts (ORS 294.361). SAL Report. Summary of Assessments and Levies (ORS 309.330). Special levy. A special levy is an ad valorem tax, imposed for an urban renewal plan on the entire municipality that adopted the plan. It is not a result of a division of tax. Special revenue fund. A fund used to account for the proceeds of specific revenue sources (other than special assess- ments, expendable trusts, or major capital projects) that are legally restricted to expenditure for specific purposes [OAR 150-294.352(1)-(A)]. Special payment. A budget expenditure category for pass-through payments, grants made to other organizations and other one-time or unusual expenditures that do not fall into the other categories of personal services, materials and services, capital outlay, etc. Supplemental budget. A financial plan adopted during a budget period to meet unexpected needs or to appropriate revenues not anticipated when the regular budget was adopted. It cannot be used to authorize a tax (ORS 294.471, renumbered from 294.480). Tax increment financing. A financial mechanism for urban renewal plans which captures the tax from the growth in property value within a designated geo- graphical area by dividing the taxes of local governments. Tax on property. Any tax, fee, charge or assessment imposed by any government unit upon property or upon a prop- erty owner as a direct consequence of ownership of that property [ORS 310.140(18)]. Tax rate. The amount of tax stated in terms of a unit of tax for each $1,000 of assessed value of taxable property. Tax roll. The official listing of the amount of taxes imposed against each taxable property. Tax year. The fiscal year from July 1 through June 30. . - 32 government. Trust fund. A fund used to account for fiscal activities of assets held intrust by a local Unappropriated ending over to the next year's budget. It provides gency,ORS 294.398, renumbered from 294.371; ORS 294.481, renumbered from 294.455'. Training & Reference Guide ONLINE RESOURCES o • BN 2017119 Budget: http://www.ashiand.or.us/SIB/files/2017-19 /o 20Budget/2017 19 Budget Complete.pdf • BN 2015117 Budget: http://www.ashiand.or.us/Files/FINAL%20WEB% 20BUDGET%20033116.pdf • Oregon Department of Revenue: http://www.oregon.gov/DOR/forms/ FormsPubs/local-budgeting-manual 504-420.pdf • Oregon Revised Status (Budget Related): https://www.oregonlegislature.gov/ bills-laws/ors/ors294.html • OpenGov (Financial Data): http://AshiandOR.OpenGov.com Training & Reference Guide Council Business Meeting December 19,2017' Ordinances Amending AMC 2.08.020 and AMC 2.28.130 to Transfer Title: Some Financial Responsibilities from the City Recorder to the Finance Department From: Mark Welch Director of Administrative Services mark.welch@ashland. or. us Summary: The two proposed ordinances amend the Ashland Municipal Code by moving certain treasury and financial functions from the City Recorder to the Finance Department. These changes will improve financial control and ensure more treasury oversight. Actions, Options, or Potential Motions: I move to approve second reading by title only of an ordinance titled, "An Ordinance Amending AMC 2.08.020 to Remove Some Responsibilities from Recorder's Function," and an ordinance titled, "An Ordinance Amending AMC 2.28.130 to Add Responsibilities to Finance Department Functions". Staff Recommendation: Staff recommends approval of the proposed ordinances (Attachments A and B) on second reading. Resource Requirements: N/A Policies, Plans and Goals Supported: N/A Background and Additional Information: First reading of this ordinance occurred at the December 5, 2107 business meeting. Article 6, Section 2 of the Ashland Charter of 1970 assigns to the elected official designated as "Recorder" certain finance-related duties as follows: "The Recorder must draw all orders for the proper payment of monies against the proper funds that have been appropriated by the City Council, and, together with the Mayor, sign the same. He/she may make periodic audits of all City accounting records. The Recorder, shall, as soon as the Council shall make a general levy of the taxes for the city, certify the same, together with any and all special benefits and assessments then due, to the Clerk of the County Court." Pagel of 2 CITY OF -ASHLAND Chapter 2.08 of the Ashland Municipal Code (AMC), adopted in 1971, assigns a number of additional finance-related duties to the "City Recorder/Treasurer." The City's Finance Department is organized under AMC 2.28.110 through 2.28.130. It was specifically created to ensure the experienced and professional administration of increasingly complex treasury and financial matters which the City must address in its operations and extensive finance obligations. Staff believes that many of the additional finance-related duties assigned to the City Recorder/Treasurer in the AMC and not assigned to the City Recorder by the Charter would be most appropriately transferred to the Finance Department. The benefits of such a transfer of specified finance-related duties include: (1) the Finance Department is already staffed to provide professional administration of the City's finances; (2) the Finance Department is effectively already performing these duties and has been doing so since May of 2016; (3) the transfer of the specified duties does not contravene the Charter, in that all the Recorder's finance-related duties specified in the Charter will continue to be performed by the Recorder; (4) the clerk-related workload of the City Recorder's office has increased significantly in the recent past due to complex and evolving mandates to respond to public records requests while staff support has decreased; and (5) the Charter establishes no financial qualifications for election to the office of City Recorder, which could enable a popular candidate with no relevant financial experience to be elected to the position. An administrative transfer of many of the City Recorder's finance-related duties took place in May of 2016 (see Attachment C), well before the previous City Recorder resigned in April of 2017. The City Recorder continues to approve all checks drawn on City accounts in order to ensure the proper payment of monies against the proper funds. This approval is now done electronically in keeping with technological changes. The proposed ordinances related to financial duties are consistent with both the Charter and current practice. They simply codify those finance-related duties that are already being performed by the Finance Department. Attachments: Attachment A: Ordinance Amending AMC 2.08.020 Attachment B: Ordinance Amending AMC 2.28.130 Attachment C: Memo dated May 13, 2016, from Lee Tuneberg, Finance Director Page 2 of 2 CITY OF ASHLAND ORDINANCE NO. AN ORDINANCE AMENDING AMC 2.08.020 TO REMOVE SOME RESPONSIBILITIES FROM RECORDER'S FUNCTION Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined through 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 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 Ashland Municipal Code has assigned responsibility over numerous treasurer or other financial duties to the City Recorder that had historically been within the ordinary abilities of an elected official of such office to perform; and WHEREAS, The Finance Department organized under AMC 2.28.110-130, was specifically created to ensure experienced and professional administration of increasingly complex treasury and financial matters the City must address in its operations and extensive finance obligations; and WHEREAS, the Recorder's office is not guaranteed to provide the necessary expertise and technical services required for overseeing the city's financial responsibilities and therefore finds it is in the public interest to transfer specific treasury and financial responsibilities to the Finance Department; THEREFORE, THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 2.08.020 is amended as follows: Section 2.08.020 Duties - Designated It shall be the duty of the City Recorder/Treasurer to perform the following tasks: A. Act as clerk of the Council, record and transcribe proceedings of the City Council, and sign and record ordinances and resolutions; B. Act as custodian of all City ordinances, resolutions, Council minutes, deeds, contracts, judgments, promissory notes and the City seal; C. Certify property tax levies and delinquent assessments to the County; receive pr-epefty taxes paid Ewer- by the County-,- Ordinance No. Page 1 of 3 1-D. Prepare, issue and record all cemetery deeds; F~E Conduct City elections in cooperation with the Jackson County officials responsible for conducting elections; G. Maintain daily and month!y batik aceount balances; 1. Seoufe signed Baner-oft bonding , .7 1 • K. issue e and nts "cc +6 Pccy ~rzar1sitt er 1iti +y treasury; irs~ ch rrc °s~Jurr-`' z--rr~ on r the rrc, C'~r L-.F. Maintain docket of City liens and prepare lien reports as required; M. Pur-ehase investment securities in cooperation with the Dir-ectef of ; N. Maintain deeket of Gity liens and prepare lien repofts as , n Maintain doeke+ of watef an sewer- foes' Q-.G. Maintain warrant register; R-.H. Maintain file of legal notices; S-.. Keep Charter available to public, with updated boundaries; and T-.J. Maintain public relations between citizens and the City. 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", 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. 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 12017, and duly PASSED and ADOPTED this day of , 2017. Melissa Huhtala, City Recorder Ordinance No. Page 2 of 3 SIGNED and APPROVED this day of , 2017. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. Page 3 of 3 ORDINANCE NO. AN ORDINANCE AMENDING AMC 2.28.130 TO ADD RESPONSIBILITIES TO FINANCE DEPARTMENT FUNCTIONS Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined throu 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 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 Ashland Municipal Code has assigned responsibility over numerous treasurer or other financial duties to the City Recorder that had historically been within the ordinary abilities of an elected official of such office to perform; and WHEREAS, The Finance Department organized under AMC 2.28.110-130, was specifically created to ensure experienced and professional administration of increasingly complex treasury and financial matters the City must address in its operations and extensive finance obligations; and WHEREAS, the Finance Department is prepared to accept and thereby add to its logical responsibilities what were historical but now archaic Recorder functions; THEREFORE, THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 2.28.130 is amended as follows: A. Remove: taxes, keenses, and pefmits and the administfation of or-dinanees and state laws applieable thereto; the feeeipt and safekeeping of all City money; pfepafation and contfol Of the ity budget; proettfemeni of > ; storage and issuance of supplies, materials and equipment,-the disposal of sur-plus pf -11--Ay- and pfopefty aecounting fof all departments; d g; finaneial estimating, planning and- the Gity Reeor-der-; dispatehin of utility connect and disconneet ofdefs; risk management and ofdinanees and the laws of the State tof those officers andeffieials ineltided in the Fiflane Ordinance No. Page 1 of') DepaAment; and the per-fefmanee of sueh other- funetions as may be assigned by the ity Administfator- of prescribed by the Gity Gouneil. B. Replace with: Section 2.28.130 Finance Department - Functions The functions of the Finance Department are: A. The administration and collection of various City taxes, licenses, and permits and the administration of ordinances and state laws applicable thereto; B. The receipt and safekeeping of all City money, which includes, but is not limited to, maintaininj4 daily and monthly bank account balances and record and bank monies received by the City; C. Redeem bonds, coupons and warrants, maintain bond registers; D. Secure signed Bancroft bondinj4 applications; E. Receive property taxes paid over by the County; F. Receive State shared revenues, and local taxes, to include but not limited to, Food and Beverage Tax and Marijuana Tax; G. Allocate property tax receipts; H. Maintain docket of water and sewer connect fees; L Issue checks and warrants necessary to pay valid claims on the City treasury; J. Preparation and control of the City budget; K. Procurement of materials, supplies, equipment and services for all departments; L. _Receipt, storage and issuance of supplies, materials and equipment; M. The disposal of surplus property; N. Fiscal and property accounting for all departments; 0. Data processing; financial estimating, planning and programming; P. Billing and collecting; Q. Purchase investment securities and investment of temporarily idle funds in cooperation with the City Recorder; R. Dispatching of utility connect and disconnect orders, S. Risk management and insurance administration; T. The performance of all duties prescribed by the City Charter and ordinances and the laws of the State for those officers and officials included in the Finance Department; and U. The performance of such other functions as may be assigned by the City Administrator or prescribed by the City Council. SECTION 2. Savinj4s. 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. Ordinance No. Page 2 of 3 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", 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. 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 , 2017, and duly PASSED and ADOPTED this day of , 2017. Melissa Huhtala, City Recorder SIGNED and APPROVED this day of , 2017. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. Page 3 of 3 CITY OF ASHLAND Memo DATE: May 13, 2016 TO: Dave Kanner CC: FROM: Lee Tuneberg, Finance Director SUBJECT: Transfer of duties Accounting, utility and finance staff met with city recorder, Barbara Christensen, as a follow-up to our April 12 meeting. The meeting was productive and many processes are undergoing changes and simplification. In deference to Barbara's preference to scale back to a level consistent with the tasks in place when she took office and in recognition of the city charter and Ashland Municipal Code, disbursements and treasury functions will remain with her position. That is to say Barbara's duties will still include: A. Managing investments and authorize disbursements. B. Her signature will be on all checks C. --ftr-v i i op- n e n-sec-escarp D. She will ensure appropriate check sequencing and numbering. We agreed that the following changes will occur immediately: 1. Property tax information will go directly to the Accounting division. 2. LGIP information will go directly to the Accounting division. 3. Online banking access and direct contact with the bank as necessary will be extended to Accounting, Bryn Morrison and Lee Tuneberg. 4. Accounting will manage the DUNS number, account and renewals to ensure proper processing for grants. 5. Deposit slips will now be given to and managed by Accounting. 6. All banking fees will budgeted and accounted for through the Finance division. 7. Online UB payments will be managed by the Customer Service/UB division. 8. Utility Billing will take over lead responsibilities for managing NWF checks and notification. The Finance Director will: • Credit cards assigned to city staff will be managed by the Finance Director. • Merchant accounts, fees, billings, payments and management will be done through the Finance division. • Credit card machine set up, use, authority and renewals will be done through the Finance division. ADMINISTRATIVE SERVICES DEPARTMENT D. L. Tuneberg, Director Tel: 541A88-5300 ALL 20 East Main Street Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us CITY OF -ASHLAND Memo • Establishing new bank accounts necessary for city operations or changes in processing. • Changes for banking processes. These changes in operations will be reviewed for accounting control and risk management standards by the city auditor in preparation for the 2016 audit. It was agreed that other financial processes done by the city recorder will be transitioned as timing and changes in the Charter and Code are approved. x i 3 i k 3 ADMINISTRATIVE SERVICES DEPARTMENT D. L. Tuneberg, Director Tel: 541A88-5300 20 East Main Street Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us Council Business Meeting December Ordinance Amending AMC 4.38 to Conform with the Oregon Department Title: of Revenue Assessing and Collecting Marijuana Tax Interest and Penalties From: Mark Welch Director of Finance mark.welch@ashland. or. us Summary: The proposed ordinance amends the Ashland Municipal Code Chapter 4.38 to conform with the Oregon Department of Revenue Assessing and Collecting Marijuana Tax Interest and Penalties. Actions, Options, or Potential Motions: I move to approve second reading, by title only of an ordinance titled, "An Ordinance Amending AMC 4.38 to Conform with the Oregon Department of Revenue Assessing and Collecting Marijuana Tax, Interest and Penalties" [with the following modifications...]. Staff Recommendation: Staff recommends approval of the proposed ordinance on the second reading. Resource Requirements: N/A Policies, Plans and Goals Supported: N/A Background and Additional Information: First reading of this ordinance occurred at the December 5, 2017 business meeting. In 2016, the City of Ashland adopted, and the voters approved, the Marijuana Tax, Ordinance 3121, codified as AMC 4.38. Under ORS 305.620, the State of Oregon, by and through its Department of Revenue (DOR), has entered into an intergovernmental agreement with the City of Ashland to supervise and administer the collection of the City's local tax, interest and penalties on sales of marijuana by marijuana retailers authorized under ORS 47513.345. The manner by which the City of Ashland originally intended to collect interest and penalties it imposed upon marijuana retailers was modeled after its ordinance that regulates the Ashland Food and Beverage Tax without considering methods the State of Oregon would use to collect the same. The DOR requires that the City conform its ordinance to a statewide model that allows for the Department to lawfully and efficiently collect marijuana taxes, interest and penalties on behalf of the City of Ashland; and proposes the amendments to AMC 4.38. Attachments: Ordinance Amending AMC 438 Page Iof I CITY OF -ASHLAND ORDINANCE NO. AN ORDINANCE AMENDING AMC 4.38 TO CONFORM WITH THE OREGON DEPARTMENT OF REVENUE ASSESSING AND COLLECTING MARIJUANA TAX INTEREST AND PENALTIES Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined throu 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 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, City of Ashland law enforcement passed a Marijuana Tax ordinance, Ord 3121, 2016, which was codified as Ashland Municipal Code Chapter 4.38; and WHEREAS, the Department of Revenue has entered into an intergovernmental agreement with the City of Ashland to collect the City's taxes and interest and penalties; and WHEREAS, the manner by which the City of Ashland originally intended to collect interest and penalties it imposed upon marijuana retailers was modeled after its ordinance that regulates the Ashland Food and Beverage Tax without considering methods the State of Oregon would use to collect the same; and WHEREAS, the DOR requires that the City conform its ordinance to a statewide model that allows for the Department to lawfully and efficiently collect marijuana taxes and interest and penalties on behalf of the City of Ashland. THEREFORE, THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Section 4.38.020 is amended as follows: 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. Ordinance No. Page 1 of 4 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 Moraccae, 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 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. 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. E. "Purchase or Sale" means the retail acquisition or furnishing for consideration by any person of marijuana within the City and does not include the acquisition or furnishing of marijuana by a grower or processor to a seller. F. "Retail sale" and "retail selling" means any transfer, exchange, gift or barter of a marijuana item by any person to a consumer and does not include the transfer or exchange of goods or services between a grower or processor and a seller. And, does not include the transfer or exchange of goods or services between a grower or processor and a seller. 0. "Seller" or "Marijuana Retailer" means any person who is required to be licensed or has been licensed by the Oregon Liquor Control Commission to provide marijuana or marijuana- infused products to purchasers for money, credit, property or other consideration. H. "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. I. "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 2. Section 4.38.060 is amended as follows: Section 4.38.060 Penalties and Interest A. Any seller whe fails to r-emit any por-tion of afly twE imposed by this chapter within the 0 to the anteent of the tax. date, time required shall pay a penalty of ten pereent B. Aixy seller who fails to remit any delinquent remittance on or before a period of 60 days shall pay it seeond following the delinquent, 0 amount of the tax and the penalty first imposed. Q if the Dir-eetor- deter-mines that the nonpayment of any r-emittanee ane ilmder- this delinquency penalty of ten pereent chapter- is due to fraud, a penalty of twenty ffi,e per-cent (251%) of the amount of the ta shall be added thereto io addition to the penalties stated in subpar-agraphs A and B of this sseetion. D. in addition to the penalties imposed, any seller who fails to remit tiny tax imposed by O this ehapter- shall pay interest at the rate of one percent Ordinance No. Page 2 of 4 nn the Amount of the toy., exelusive of penalties, from the date on whieh the remittfiflee beeame delinquent until paid. E. EveFy penalty imposed, and sueh interest as neer-ues under- the provisions of this , shall beeome a part of the tax required to be paid. > Notwithstanding eubsee`ion AMC 4.34.020.C-, all sums eelleeted pursuant to toe . au., ear..hs A and C of this section shall be distributed to the City of Ash! 9vvq,Zpe Fund to offset the eosts of auditing and enforeement of this tax. G. WaiveF of Penalties. Penalties and interest for eer-tain late tax payments may be m1aived pur-suant to AA4C- 2.28.045D. A. Interest shall be added to the overall tax amount due at the same rate established under ORS 305.220 for each month, or fraction of a month, from the time the return to the Oregon Department of Revenue was originally required to be filed by the mariiuana retailer to the time of payment. B. If a marijuana retailer fails to file a return with the Oregon Department of Revenue or pay the tax as required a penalty shall be imposed upon the mariiuana retailer in the same manner and amount provided under ORS 314.400. C. Every penalty imposed and any interest that accrues, becomes a part of the financial obligation required to be paid by the marijuana retailer and remitted to the Oregon Department of Revenue. D. Taxes interest and penalties transferred to Ashland by the Oregon Department of Revenue will be distributed to the City's General Fund. . E. If at any time a marijuana retailer fails to remit any amount owed in taxes, interest or penalties, the Oregon Department of Revenue is authorized to enforce collection on behalf of the City of the owed amount in accordance with ORS 475B.700 to 475B.755, any agreement between the Oregon Department of Revenue and Ashland under ORS 305.620 and any applicable administrative rules adopted by the Oregon Department of Revenue. SECTION 3. Section 4.38.070 is deleted as follows: Seetion • if any seller- should fail to make, within the time provided in this Chftpt...., a ort of th ~er tax required by this ehapter, the Direetor shall pr-oeppd- in suph moanpr aq &empd hest to Lah-toin f t d information a wl.ieh to base the estimate °f tax due A q qAAM As the Direeter shall proeure such faets and infor-mation as is able to be obtained, upon whieh to base the assessment of any tax imposed by this eha, by any seller-, th DDireetor- shall rweed to determine and assess neeost s h cello„ the taN interest and penfilties provided for by this ehapter, in ease such determination is made, the Direetor- 1. ll give a ..tie of the amount s assessed by having it s ed p ally `•-by depo iti*g v it the United States it, stn addr ed to the seller- assessed at thelast re as prepaid, "own plaee of address.Such seller may ab appeal of c el. determination as proy t' 4.34.080. if n al is filed the Director's determination is final and the amount thereby is immediately due and payable. SECTION 4. Section 4.38.100 is deleted as follows: Ordinance No. Page 3 of 4 Seetion 24 Inn Aetions to Colle + Any tax required to be paid by any seller under the provisions of this ehapter shall be deemed a debt owed by the seller to the City. Any sueh tax eollected by a seller-whieh has not been paid to the City shall be deemed a debt owed by the seller- to the City. Any per-son . - iney to the City under the provisions of this ehapter shall be liable to an netion brought in the name of the Cit~, of Ashland for the reeove", of sueh amount. in lieu o filing an action for- the > the City of > days delinquent, ean submit any outstanding tax to a eolleetion ageney. So long as the Cit~, of Ashland has eomplied with the provisions set forth in ORS 697.105, in the event the City turns over- a delinquent tax aeeount to a eolleetion ageney, it may add to the amount owin an amount equal to the eolleetion ageney fees, not to exeeed the greater- of fifty dollars ($50.00) or- fifty pereent (500%) of the outstanding tax, penalties and interest owing-. SECTION 5. 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 6. 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 7. Codification. Provisions of this Ordinance shall be incorporated in the City Code, and the word "ordinance" may be changed to "code", "article", "section", or another word, and the sections of this Ordinance may be renumbered or re-lettered, provided however, that any Whereas clauses and boilerplate provisions, i. e., Sections 5-7 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 , 2017, and duly PASSED and ADOPTED this day of , 2017. Melissa Huhtala, City Recorder SIGNED and APPROVED this day of 2017. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. Page 4 of 4 Council Business Meeting December 19,2017 Title: Amendment to Renewable Resource Purchase Policy (Net Metering) From: Adam Hanks Interim Assistant to the City Administrator adam@ashland.or.us Summary: The draft ordinance for review by Council this evening amends the long-standing (1996) and very successful Renewable Resource Purchase Policy that formalizes the relationship between the Electric Utility and its customers who install local renewable electricity generation on their property within the City's service territory. Amendments include: • Change in the date for the annual "true-up" for customers who have excess kilowatt hours (kwh) of electricity above and beyond what they consumed through the course of the year • Inclusion of language allowing "virtual net metering", meaning that kwh generated from one customer account can be transferred to either another account under the same account holder or be allocated by contract agreement to other account holder(s) within the City's service territory Actions, Options, or Potential Motions: I move to approve a resolution titled, "A Resolution Amending the Renewable Resource Purchase Policy." Staff Recommendation: Staff recommends Council approved the draft resolution as proposed with the anticipation that additional amendments will likely be presented to Council in the coming months in conjunction with new solar program incentives relating to the implementation of the Climate and Energy Action Plan (CEAP). Resource Requirements: The current "true-up" date currently triggers a once a year credit to a handful of solar net metered customers with a total cost of between $1,000 and $2,000. It is anticipated that the adjusted true-up date will eliminate the credit "payments" and will instead be utilized by the customers as a month to month net meter credit. The net effect of the adjustment is negligible, as it is primarily a timing and maximization of system generation adjustment. Policies, Plans and Goals Supported: Climate and Energy Action Plan (CEAP) - Buildings and Energy • BE-1-3 - Facilitate and encourage solar energy production Background and Additional Information: The City of Ashland Electric Utility was one of the first electric utilities in the state to develop and approve a renewable resource purchase policy to formalize and encourage customer interest Page] of 3 CITY OF -ASHLAND and installation of local, renewable electricity generation. Three different amendments to the resolution have occurred between its original approval and the proposed amendment before Council now, which is indicative of the evolving nature of local generation and its relationship to the Electric Utility. The proposed amendments contained in the draft ordinance address two issues that have been identified by City Staff, local solar installation partners and net metered customers. True-up Date Electric Utility customers who have installed generating equipment on their property are called net metered customers as they utilize the City's local distribution grid as a virtual battery by placing excess kwh generation onto the City's grid each month. How much excess generation each customer has is dependent on the size of their solar system, their consumption needs and the energy efficiency of their structures and equipment. The excess kwh are shown each month on the customer's utility billing statement and can accumulate seasonally and are typically exhausted prior to the current true-up date of December 31 so no credit is applied. In recent years, the lower costs for solar systems has resulted in larger system sizes which then resulted in more net metered customers having excess kwh at the end of the calendar year. By moving the true-up date to March 31 of each year, it is anticipated that net metered customers will be better positioned to utilize 100% of their generation throughout the year since the January, February and March months are lower system generation months and can also be high consumption months for customers who heat with electricity. Virtual Net Metering City Staff have been working with local solar installers and other renewable energy entities and utilities in the region to determine how to better facilitate the ability of a customer account location that has good solar access, but not enough consumption at that site to make the solar installation economically viable or wishes to have others share in the solar installation investment and use the generation capacity as a portion of the investment return. Virtual net metering (VNM) is a bill crediting system for transferring energy production benefits from one utility account holder to another. Energy produced at one utility meter (the Generator account) may be shared among other account holders (the Benefitting accounts). VNM Generator accounts must, at minimum: - Be a City of Ashland electric utility account holder and have a utility installed production meter - Sign a current Net Metering Contract with City of Ashland - Have a current VNM Allocation Agreement on file with the City for 100% of the generation VNM Benefitting accounts must, at minimum: - be listed on a current VNM Allocation Agreement on file with Utility billing Page 2of3 CITY OF ASHLAND The availability of VNM provides for the potential installation of community solar projects not owned and operated by the City, as well as for installations on multi-family and commercial buildings that currently face financial return on investment challenges. Attachments: Draft Renewable Resource Purchase Policy Resolution Page 3 of 3 CITY OF -ASHLAND RESOLUTION NO. 2017- A RESOLUTION UPDATING THE ELECTRIC UTILITY RENEWABLE RESOURCE PURCHASE POLICY RECITALS: A. The City of Ashland, through its Municipal Electric Utility supports and encourages customer interest and installation of local, renewable electricity generation B. The City of Ashland established its first renewable resource purchase policy in October of 1996, which subsequent amendments in 2001, 2008 and 2010 through resolutions 96-42, 2001-10, 2008-31 and 2010-29. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. The City of Ashland supports and encourages citizens and businesses: A. To invest in renewable electric energy generation systems; and B. For those who generate electricity, to remain on the local electric grid to use it as a backup supply SECTION 2. The City of Ashland will purchase solar, wind, fuel cell or hydroelectric generated electricity from a customer-generator subject to the following conditions: A. All systems will be installed so as to comply with the Ashland Municipal Electric Utility Design Requirements for Interconnection of Customer owned, Grid Connected Renewable Generating Facilities as set forth in Exhibit A of this resolution B. Systems will utilize a single electric meter, supplied by the Municipal Electric Utility which moves in both directions, measuring the net of consumption and generation. C. All excess kilowatt-hours (kWh) generated each month from the approved renewable resource system will be credited to the customer's utility account. On the next available billing cycle after March 31, all excess kWh accumulated on the customer account will be purchased as a customer credit at the Municipal Electric Utility's current total wholesale rate. SECTION 3. The City of Ashland will facilitate the distribution of solar, wind, fuel cell or hydroelectric generated electricity from a customer-generator, called Virtual Net Metering (VNM) subject to the following conditions: A. All systems will be installed so as to comply with the Ashland Municipal Electric Utility Design Requirements for Interconnection of Customer owned, Grid Connected Renewable Generating Facilities as set forth in Attachment A of this resolution B. Systems will utilize a separate production meter for the generating system supplied by the Municipal Electric Utility to measure the total electricity generated from the system. C. Owners of VNM systems must provide the Municipal Electric Utility with a completed VNM Allocation Agreement describing the percentages of the monthly generation allocated to each of the benefitting accounts within the Municipal Electric Utility service territory. Reso No. Page 1 of 3 SECTION 4. Resolution 2010-29 is repealed in its entirety This resolution was duly PASSED and ADOPTED this day of , 2017, and takes effect upon signing by the Mayor. Melissa Huhtala, City Recorder SIGNED and APPROVED this day of 2017. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Reso No. Page 2 of 3 Exhibit A Design Requirements for Interconnection of Customer-Owned, Grid-Connected Solar, Wind, Fuel Cell or Hydroelectric Generating Facilities All inverter based systems shall comply with the following standards: • Installation shall be in accordance with all applicable local electrical and building codes, the National Electrical Code (NEC), National Electrical Safety Code (NESC), the Institute of Electrical and Electronic (IEEE) standards and American National Standards Institute (ANSI). • Systems must be designed and installed using UL or ETL listed components. • Inverters must comply with the following requirements: IEEE 1547 and 1547.1 "Recommended Practice and Utility Interface of Photovoltaic (PU) systems" and UL subject 1741 "standards for State Inverters and Charge Controllers for use in Photovoltaic Power Systems". Each system, except as exempted below, in addition to the automatic disconnection shall have a UL approved safety disconnect switch on the Customer-Generator side of the meter capable of fully disconnecting the Customer-Generator energy generating equipment from the City of Ashland's electric system. The disconnect switch shall be clearly visible from the Kilowatt-hour meter and located within 10 feet of the meter base. The disconnect switch shall be of the visible break type in a metal enclosure, shall be clearly labeled "Generator Disconnect Switch" and shall be readily accessible to City of Ashland Electric Utility Personnel at all times. Exemption to the disconnect switch requirements are as follows: For customer services of 600 volts or less, a disconnect switch is not required in the following instances: Service Type Maximum Net Metering F_acility Size 240 volts, single-phase, 3 wire 7.2kW 120/208 volts, 3-phase, 4 wire 10.5kW 120/240 volts, 3-phase, 4 wire 12.5 kW 277/480 volts, 3-phase, 4 wire 25 kW Any proposed renewable resource generation system with a nameplate production of 200kW or greater requires prior consultation and approval by the Municipal Electric Utility. Reso No. Page 3 of 3