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HomeMy WebLinkAbout2022-07-19 Council MeetingASHLAND CITY COUNCIL BUSINESS MEETING AGENDA Tuesday, July 19, 2022 View on Channel 9 or Channels 180 and 181 (Charter Communications) or live stream via rvtv.sou.edu select RVTV Prime. HELD HYBRID (Limited In -Person Social Distancing Seating and Zoom Meeting Access) The Special Business Meeting will be held in Council Chambers, 1175 E. Main Street. Written and oral testimony will be accepted for public input. For written testimony, email public-testimony(a)ashland.or.us using the subject line: Ashland City Council Public Testimony. For oral testimony, fill out a Speaker Request Form at ashland.or.us/st)eakerrecquest and return to the City Recorder. 5:30 PM Executive Session The Ashland City Couricil will hold an Executive Session and may conduct the following: 1. Deliberations with persons designated by the governing body to carry on labor negotiations, pursuant to ORS 192.660(2)(d). 2. City Manager Review, pursuant to ORS 192.660(2)(i). 6:00 PM Regular Business Meeting* L CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENTS Land Acknowledgement** V. APPROVAL OF MINUTES Minutes of Boards, Commissions and Committees*** VI. SPECIAL PRESENTATIONS & AWARDS 1. Climate Change Policy Commission — Home Energy Score Program VII. PUBLIC FORUM VIII. CITY MANAGER REPORT IX. CONSENT AGENDA X. PUBLIC HEARINGS XI. UNFINISHED BUSINESS 1. November 8, 2022 Election Referendums and Initiatives • Food and Beverage Tax Ballot • Measure 109 Psilocybin Two Year Moratorium Ordinance XII. NEW AND MISCELLANEOUS BUSINESS 1. Coordinated Water Rights Management and Water Sharing Plan Intergovernmental Agreement XIII. ORDINANCES, RESOLUTIONS AND CONTRACTS 1. Second Reading of Ordinance No. 3210 Relating to Notice of Meetings 2. Dry Creek Landfill Biosolids Disposal - Sole Source Procurement 3. Contract Amendment for the Japanese Garden XIV. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS XV. ADJOURNMENT OF BUSINESS MEETING *Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.(D)(3)] **LAND ACKNOWLEDGEMENT We acknowledge and honor the aboriginal people on whose ancestral homelands we work — the Ikirakutsum Band of the Shasta Nation, as well as the diverse and vibrant Native communities who make their home here today. We honor the first stewards in the Rogue Valley and the lands we love and depend on: Tribes with ancestral lands in and surrounding the geography of the Ashland Watershed include the original past, present and future indigenous inhabitants of the Shasta, Takelma, and Athabaskan people. We also recognize and acknowledge the Shasta village of K'wakhakha - "Where the Crow Lights" - that is now the Ashland City Plaza. ***Agendas and minutes for City of Ashland's Boards and Commissions meetings may be found at the City's website, httns://www.ashiand.or.us/Aeendas.ast) . Use the View By box to select the Board or Commission information you are seeking. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Manager'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). ASHLAND CITY COUNCIL DRAFT MINUTES BUSINESS MEETING Tuesday, July 5, 2022 View on Channel 9 or Channels 180 and 181 (Charter Communications) or live stream via rvtv.sou.edu select RVTV Prime. HELD HYBRID (Limited In -Person Social Distancing Seating and Zoom Meeting Access) The Special Business Meeting will be held in Council Chambers, 1175 E. Main Street. Written and oral testimony will be accepted for public input. For written testimony, email public-testimony(adashland.or.us using the subject line: Ashland City Council Public Testimony. For oral testimony, fill out a Speaker Request Form at ashland.or.us/saeakerrecluest and return to the City Recorder. 6:00 PM Regular Business Meeting* CALL TO ORDER Mayor Akins called the Council Business Meeting to order at 6:00 PM II. PLEDGE OF ALLEGIANCE III. ROLL CALL Councilors' Hyatt, Graham, Moran, Seffinger, DuQuenne and Jensen were present. IV. MAYOR'S ANNOUNCEMENTS Land Acknowledgement** Moran read the land acknowledgement. V. APPROVAL OF MINUTES VI. Minutes of Boards, Commissions and Committees*** 1. Study Session June 6, 2022 2. Study Session May 16, 2022 Hyatt/Jensen moved to approve the minutes. Discussion: None. Voice Vote: All Ayes. Motion passed unanimously. VII. SPECIAL PRESENTATIONS & AWARDS VIII. PUBLIC FORUM Mike Gardiner — Ashland — Spoke regarding the nature walks. He also gave an update on the Japanese Garden. Linda Peterson Adams — Ashland — read a statement into the record (see attached). IX. CITY MANAGER REPORT City Manager Joe Lessard presented the Manager Report. Items discussed were: • Look Ahead • Election calendar • Committees/Commissions process Graham/Jensen moved to put a forensic audit discussion on the agenda. Discussion: Graham explained the reason for this motion and what a Forensic Audit is. Roll Call Vote: Graham, Hyatt, Jensen and Seffinger: YES. DuQuenne and Moran: NO. Motion passed 4-2. DuQuenne questioned the status of the Community Center. Lessard spoke that he would bring this back the status to Council. X. CONSENT AGENDA 1. Letter of Support — Oregon Department of Transportation America the Beautiful Challenge Grant Application Voice Vote: DuQuenne, Moran, Seffinger, Hyatt, Jensen and Graham: YES. Motion passed unanimously. . XI. PUBLIC HEARINGS XII. UNFINISHED BUSINESS XII. NEW AND MISCELLANEOUS BUSINESS 1. Designation of Acting City Attorney Council discussed the recruitment process. Jensen/Graham I move to confirm the appointment of Doug McGeary as Interim City Attorney and grant the City Manager the authority to negotiate and sign the Interim City Attorney's. contract. Discussion: Jensen spoke in support of Mr. McGeary. Graham thanked Katrina Brown for her work. Roll Call Vote: Graham, Hyatt, DuQuenne, Jensen, Seffinger and Moran: YES. Motion passed unanimously. 2. November 8'b Election Referendums/Initiatives Council discussed suspension of rules. Lessard explained the ballot options. Public Forum Sue Wilson — Ashland — spoke regarding Ashland Parks and Recreation Commission. Clarinda Merripen -Black Sheep Owner — Ashland — Spoke regarding the Food and Beverage Tax. She encouraged Council and Staff to increase taxes in other ways. She spoke to the importance of keeping restaurants open. Council discussed the potential initiatives and referendums and the process. Jensen/Seffinger moved to direct Staff to bring to the July 19' , 2022 clarity and appropriate Resolution language to place a Food and Beverage duel referendum on the November ballot that combines the Citizens initiative with the City Manager's referendum into either/or choice for voters. Discussion: Seffinger spoke to the history of this issue and the importance of hearing the voice of the Community. Jensen gave clarity that this is a motion to get feedback and clarification. Graham spoke in support of more time and to give the citizens options and spoke in support of the motion. Hyatt spoke in support of the motion. She spoke in appreciation of Staff. Moran questioned the process. Lessard explained the process. Seffinger called for the questions: Roll Call Vote: Moran, Hyatt, Graham and DuQuenne: NO. Councilor Seffinger and Jensen: VES. Motion fails 2-4. Discussion continued: Council discussed the schedule of the process. Council discussed the potential options. Roll Call Vote: Graham, Hyatt, Jensen and Seffinger: YES. DuQuenne and Moran: NO. Motion passed 4-2. Council requested that the petitioner come to the next meeting to discuss the petition. XI1I. ORDINANCES, RESOLUTIONS AND CONTRACTS 1. Second Reading of Ordinance No.3211 Relating To Pedicab Operations and Alcoholic Beverages; Adding New AMC 10.40.050 City Attorney Katrina Brown gave a brief Staff report. Public Input: Nate Olsen — Ashland — Thanked Council. Moran/DuQuenne moved to approve Second Reading of Ordinance No.3211. Discussion: None. Roll Call Vote: Hyatt, Graham, Moran, Seffinger, Jensen and DuQuenne. Motion passed unanimously. Council continued the discussion on November P Election Referendums/Initiatives regarding supervision of Staff. Lessard gave a Staff report. DuQuenne/Hyatt moved to adopt Resolution No. 2022-21 referring an amendment to Article VIII-A, Section 4, of the City Charter related to the responsibilities of the City Manager, to the qualified voters of the City of Ashland for the November 8, 2022, General Election. Discussion: DuQuenne spoke in support of the motion. Hyatt spoke regarding the process of this and the importance of looking at the Municipality in its totality. She spoke regarding insurance issues. She spoke that it is a fiduciary duty to mitigate the risk to tax payers. Moran spoke to the importance of mitigating risk and fiscal stewardship. Jensen spoke regarding the reasons our rates are going up according to CIS. Graham spoke in support of the motion. Seffinger spoke to her concerns on how Parks budget would be allocated. Lessard clarified how Parks Funds are allocated. Roll Call Vote: Hyatt, Graham, Jensen, Moran and DuQuenne: YES. Seffinger: NO. Motion passed 5-1. 2. First Reading of Ordinance No. 3210 Relating to Notice of Meetings; Amending Municipal Code 2.04.020 Identification of Representatives of News Media Organizations Lessard gave a brief Staff report. Hyatt/Moran moved to approve First Reading of Ordinance No. 3210 and advance it to Second Reading for enactment. Discussion: None. Roll Call Vote: Hyatt, Graham, Moran, Seffinger, DuQuenne and Jensen: YES. Motion passed unanimously. XIV. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS Councilor Graham explained the reason for this item and explained her concerns of a social media statement regarding a forensic audit by Mayor Akins. Mayor Akins spoke that she will bring this item to a future agenda appropriately if need be. XV. ADJOURNMENT OF BUSINESS MEETING Moran/DuQuenne moved to adjourn the Business Meeting at 9:05 PM. Discussion: None. All Ayes. Respectfully Submitted by: City Recorder Melissa Huhtala Attest: Mayor Akins *Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.(D)(3)] **LAND ACKNOWLEDGEMENT We acknowledge and honor the aboriginal people on whose ancestral homelands we work — the Ikirakutsum Band of the Shasta Nation, as well as the diverse and vibrant Native communities who make their home here today. We honor the first stewards in the Rogue Valley and the lands we love and depend on: Tribes with ancestral lands in and surrounding the geography of the Ashland Watershed include the original past, present and future indigenous inhabitants of the Shasta, Takelma, and Athabaskan people. We also recognize and acknowledge the Shasta village of K'wakhakha - "Where the Crow Lights" - that is now the Ashland City Plaza. ***Agendas and minutes for City of Ashland's Boards and Commissions meetings may be found at the City's website, httos://www.ashland.or.us/Aeendas.asn . Use the View By box to select the Board or Commission information you are seeking. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Manager'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). FISCAL IMPACTS The recommended action has not immediate fiscal impact on the City of Ashland. If the City Council refers the two-year moratorium for voter approval, it will allow the community to provide input to the City Council on potential land use regulations for the locating and operation of psilocybin manufacturing, sale, and service -related operations. POLICIES. PLANS & GOALS SUPPORTED BACKGROUND AND ADDITIONAL INFORMATION REFERENCES & ATTACHMENTS League of Oregon Cities Model Psilocybin Ordinance & Ballot Measure, June 2022 Page 2 of 2 C I T Y O F -ASHLAND to yet /_►� ,, I .i ,. Model bin Ordinance & Ballot Measure DUNE 2022 Section 2. Referral. This ordinance is referred to the electors of the city of {city) for approval at the next statewide general election on November 8, 2022. Section 3. Effective Date. This ordinance takes effect and becomes operative 30 days after the day on which it is approved by a majority of voters. First reading this day of 2022. Second reading and passage by this Council this day of Signed by the Mayor this day of , 2022. ATTEST: SIGNED: {NAME}, City Recorder {NAME}, Mayor WW"i Model Psilocybin Ordinance and Ballot Measure 4 BALLOT TITLE A caption which reasonably identifies the subject of the measure. 10-word limit under ORS 250.035(1)(a) Prohibits psilocybin-related businesses within {city}. [Prohibition sunsets after two years.] QUESTION A question which plainly phrases the chief purpose of the measure so that an affirmative response to the question corresponds to an affirmative vote on the measure. 20-word limit under ORS 250.035(1)(b) Shall {city or county} prohibit {psilocybin-related businesses) in {city or county}? SUMMARY A concise and impartial statement summarizing the measure and its major effect. 175-word limit under ORS 250.035(1)(c) State law allows operation manufacturer, distribution and possession of psilocybin and psilocin. State law provides that a {city or county} council may adopt an ordinance to be referred to the voters to prohibit the establishment of any of those registered or licensed activities. Approval of this measure would prohibit the establishment of {psilocybin product manufacturers} and/or {psilocybin service center operators} within the area (subject to the jurisdiction of the city) or {in the unincorporated area subject to the jurisdiction of the county.} EXPLANATORY STATEMENT An impartial, simple and understandable statement explaining the measure and its effect for use in the county voters' pamphlet. 500-word limit under ORS 251.345 and OAR 165-022-0040(3) Approval of this measure would prohibit the establishment {and operation} of psilocybin-related businesses within the (city or county). A {city or county} council may adopt an ordinance prohibiting the establishment of psilocybin related businesses within the {city or county}, but the council must refer the ordinance to the voters at a statewide general election. The {CITY or COUNTY) OF {NAME} {city or county) council has adopted an ordinance prohibiting the establishment of psilocybin-related businesses within the {city or county} and, as a result, has referred this measure to the voters. If approved, this measure would prohibit psilocybin-related businesses within the {city or county}. Model Psilocybin Ordinance and Ballot Measure 5 TWO-YEAR MORATORIAM .............................................. 0 ■ ............................. ■ . C•T:77 ,1�T1►["zrej AN ORDINANCE DECLARING A TEMPORARY BAN ON PSILOCYBIN SERVICE CENTERS AND THE MANUFACTURE OF PSILOCYBIN PRODUCTS WHEREAS, in November 2020, Oregon voters approved Ballot Measure 109, known as the Oregon Psilocybin Service Act (codified at ORS 475A), which allows for the manufacture, delivery and administration of psilocybin at licensed facilities; and WHEREAS, ORS 475A.235 provides that the Oregon Health Authority will regulate the manufacturing, transportation, delivery, sale and purchase of psilocybin products and the provision of psilocybin services in the state; and WHEREAS, the Oregon Health Authority has initiated a rulemaking process to implement the state's psilocybin regulatory program and intends to begin accepting applications for psilocybin-related licenses on January 2, 2023; and WHEREAS, as of June {date}, 2022, the Oregon Health Authority has not completed the rulemaking process for implementing the state's psilocybin regulatory program, and the City of {city} is uncertain how the manufacture, delivery and administration of psilocybin at licensed psilocybin facilities will operate within the city; and WHEREAS, ORS 475A.718 provides that a city council may adopt an ordinance to be referred to the electors of the city prohibiting the establishment of state licensed psilocybin product manufacturers and/or psilocybin service centers in the area subject to the jurisdiction of the city; and WHEREAS, the {city} City Council believes that prohibiting psilocybin product manufacturers and psilocybin service centers within the city's jurisdictional boundaries to enable the adoption of the state's psilocybin licensing and regulatory program and to allow the city to adopt reasonable time, place, and manner regulations on the operation of psilocybin facilities is in the best interest of the health, safety and welfare of the people of {city}; and WHEREAS, the City Council seeks to refer to the voters of {city} the question of whether to establish a two-year temporary ban on state -licensed psilocybin product manufacturers and psilocybin service centers within the city's jurisdictional boundaries. Now, therefore, THE CITY OF {CITY} ORDAINS AS FOLLOWS: Section 1. Prohibition. Model Psilocybin Ordinance and Ballot Measure The establishment of psilocybin product manufacturers licensed under ORS 275A.290 and psilocybin service centers licensed under ORS 475A.305 is prohibited in the city of {city}. Section 2. Referral. This ordinance is referred to the electors of the city of {city} for approval at the next statewide general election on November 8, 2022. Section 3. Effective Date. This ordinance takes effect and becomes operative 30 days after the day on which it is approved by a majority of voters. Section 4. Sunset. This ordinance is repealed on December 31, 2024. First reading this day of , 2022. Second reading and passage by this Council this day of , 2022. Signed by the Mayor this day of 2022. ATTEST: SIGNED: {NAME}, City Recorder {NAME}, Mayor Model Psilocybin Ordinance and Ballot Measure 7 BALLOT TITLE A caption which reasonably identifies the subject of the measure. 10-word limit under ORS 250.035(1)(a) Prohibits psilocybin-related businesses within {city}. [Prohibition sunsets after two years.] QUESTION A question which plainly phrases the chief purpose of the measure so that an affirmative response to the question corresponds to an affirmative vote on the measure. 20-word limit under ORS 250.035(1)(b) Shall {city or county} prohibit {psilocybin-related businesses} in {city or county}? SUMMARY A concise and impartial statement summarizing the measure and its major effect. 175-word limit under ORS 250.035(1)(c) State law allows operation manufacturer, distribution and possession of psilocybin and psilocin. State law provides that a {city or county} council may adopt an ordinance to be referred to the voters to prohibit the establishment of any of those registered or licensed activities. Approval of this measure would prohibit the establishment of {psilocybin project manufacturers} and/or {psilocybin service center operators} within the area {subject to the jurisdiction of the city} or {in the unincorporated area subject to the jurisdiction of the county.} EXPLANATORY STATEMENT An impartial, simple and understandable statement explaining the measure and its effect for use in the county voters' pamphlet. 500-word limit under ORS 251.345 and OAR 165-022-0040(3) Approval of this measure would prohibit the establishment {and operation} of psilocybin-related businesses within the {city or county}. A {city or county} council may adopt an ordinance prohibiting the establishment of psilocybin related businesses within the {city or county}, but the council must refer the ordinance to the voters at a statewide general election. The {CITY or COUNTY} OF {NAME} {city or county} council has adopted an ordinance prohibiting the establishment of psilocybin-related businesses within the {city or county} and, as a result, has referred this measure to the voters. If approved, this measure would prohibit psilocybin-related businesses within the {city or county} until December 31, 2024. Model Psilocybin Ordinance and Ballot Measure 8 Council Business Meeting July 19, 2022 Agenda Item Coordinated Water Rights Management and Water Sharing Plan Intergovernmental Agreement From Scott Fleury PE Public Works Director Contact Scott.fleuryCcDashland.or.us 541-552-2412 SUMMARY Before the Council is an Intergovernmental Agreement (IGA) for a Coordinated Water Rights Management and Water Sharing Plan between the Medford Water Commission (MWC) and the "Partner Cities" that utilize MWC for treated water delivery. POLICIES, PLANS & GOALS SUPPORTED City Council Goals: • Essential Service -Drinking Water System • Emergency Preparedness • Address Climate Change CEAP Goals: Natural Systems: Air, water, and ecosystem health, including opportunities to reduce emissions and prepare for climate change through improved resource conservation and ecosystem management. • Strategy NS-2: Manage and conserve community water resources • Strategy NS-3: Conserve water use within City operations Department Goals: • Maintain existing infrastructure to meet regulatory requirements and minimize life -cycle costs • Deliver timely life cycle capital improvement projects • Maintain and improve infrastructure that enhances the economic vitality of the community • Evaluate all city infrastructure regarding planning management and financial resources PREVIOUS COUNCIL ACTION The Council has not taken any formal action with respect to the Coordinated Water Rights Management and Water Sharing Plan IGA, but staff has presented background information to Council previously. August 4, 2020: 2020 Water Master Plan & Adoption Process Minutes, Staff Report) January 3, 2022: Enterprise System Background "Water" Minutes, Staff Report) May 2, 2022: Water Resources Report (Staff Report). BACKGROUND AND ADDITIONAL INFORMATION In early 2020, MWC and the Cities of Talent, Ashland, Phoenix, Eagle Point, Central Point and Jacksonville (Partner Cities) completed a joint water rights strategy related to the water rights authorizing diversion at Medford Water's Duff Water Treatment Plant (WTP) on the Rogue River. The water rights strategy included a proposed approach to ensure orderly certification of the water rights at the Duff WTP; it also included a proposed plan for sharing water supply to meet combined short-term (Phase 1) and long-term (Phase 2) water Page 1 of 3 CITY OF -ASH LAN D supply needs for all partner entities. The Medford Water Commission Board directed General Manager, Brad Taylor, to work with "other cities" partners to develop the proposed IGA under certain guiding principles. These principals included the following: 1. Medford Water would be (and receive compensation for being) the Managing Agency for the Partners but will not have a fiduciary responsibility to the other Partners. 2. The agreement must be consistent with the City of Medford's January 1, 1999, City Charter. 3. The agreement must ensure that Medford Water retains control of its water rights, the Duff WTP, and related infrastructure. 4. The agreement should relate only to water rights associated with the Duff WTP (and not to the Big Butte Creek water rights). 5. The Phase 1 IGA would provide for water sharing among the Partner Cities and would seek commitments to develop a Phase 2 agreement. Medford Water would not, however, be bound to enter into a Phase 2 agreement. 6. Medford Water could withdraw from the sharing agreement. Over the past two years, MWC has met monthly with representatives of the Partner Cities to develop an IGA to implement Phase 1 of a water -sharing agreement. The Partners have developed an IGA that provides for orderly certification of the water rights at the Duff WTP, and a mechanism by which the Partner Cities would share water supply under their water rights and MWC would function as the Managing Agency. The IGA provides that the Partner City water -sharing agreement would begin on October 1, 2022, but a "dry run" is planned for May through September 2022. The IGA would renew every five years, consistent with the term of existing water supply agreements. The IGA provides for an annual meeting to review the water sharing calculations and discuss other issues related to provisions in the IGA. The proposed IGA meets the guiding principles provided by the MWC Board. MWC will be the Managing Agency, and costs associated with these functions will be passed to the cities through costs of service and associated water rates. Additionally, the IGA pertains to only the water rights associated with the Duff WTP and expressly states that MWC (and all other partners) retain ownership of their water rights, and Medford Water retains ownership of the Duff WTP and related infrastructure. The agreement provides for water sharing among the Partner Cities and includes a mechanism for Partners to withdraw from the sharing agreement. The IGA recognizes that the water rights strategy recommended a second phase but provides that entering into the Phase 1 agreement does not bind a party to enter into a Phase 2 agreement. Finally, the proposed IGA has been reviewed by legal counsel of the MWC and Partner Cities. The IGA in its full form is referenced as attachment #1 below. The IGA is intended to be supplemental to the Treat and Transport and wholesale water agreements that already exist between MWC and the partner cities. Approval Status: Central Point on April 28' — Approved Phoenix on May 2°d— Approved Jacksonville on May 3Td — Approved Eagle Point on May I Oth — Approved Scheduled: Ashland — June 7t' Talent — 3rd week of May Page 2 of 3 C I T Y O F -ASH LAN D Staff is now seeking approval by the City Council to authorize the City Manager to enter into the formal IGA. The Medford Water Commission Board will complete the adoption process after each individual City Council considers adoption. However, the document will be returned for additional approval if significant changes occur after Ashland City Council consideration/approval. Talent -Ashland -Phoenix Intertie (TAP): The City of Ashland has permit for 1000 acre-feet of stored water right in Lost Creek Reservoir that utilizes the Duff Treatment Plant as the point of diversion for delivery of treated water through the TAP system. As part of the certification strategy outlined in the IGA, this water permit is referenced first for certification. The certification date based on the acquisition of the original Lost Creek water right permit was September 7, 2021. This means the City must certify all or a portion of the use and/or request a time extension for the "development" of the remainder of the water right. To certify the permit, a "Claim of Beneficial Use" (COBU) must be developed that shows the water was put to use during a water year (October 1 — September 30). During the 2021 season the City pumped 550.6 acre feet of TAP water or 179 MG. Public Works worked with GSI Water Solutions to develop the COBU and "certify" the use of 550.6 acre-feet and obtain a partial perfection water right certificate from the Oregon Water Resources Department (OWRD) on April 12, 2022. Partial perfection references only a portion of the total water right was perfected or shown to be used during the time period. Public Works has requested a time extension to certify the remainder of the Lost Creek stored water right. OWRD has issued a proposed final order for the time extension that will extend the certification time to October 1, 2061 for final perfection of remaining permit volume (449.4 MG). The City will not be able to obtain any more stored water rights from Lost Creek Reservoir until such time as it shows that its demand will exceed currently held water rights within the 20 year planning window FISCAL IMPACTS City of Ashland's financial obligations under the proposed IGA are described in section VII. Additionally, costs associated with MWC's management of the program will be included in partner cities' rates. The only fiscal impact associated with approval of appointments is the associated with the staff time necessary to participate in partner cities meetings and bring this action forward to Council. STAFF RECOMMENDATION Staff recommends Council authorize the City Manager to sign IGA ACTIONS, OPTIONS & POTENTIAL MOTIONS I Move to authorize the City Manager enter into and sign the Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan. REFERENCES & ATTACHMENTS Attachment # 1: Intergovernmental Agreement Attachment #2: Coordinated Water Rights Certification and Sharing Plan one page background sheet Page 3 of 3 CITY Of -ASH LAN D INTERGOVERNMENTAL AGREEMENT FOR A COORDINATED WATER RIGHTS MANAGEMENT AND WATER SHARING PLAN I. Parties This Intergovernmental Agreement (IGA) is between the Medford Water Commission (MEDFORD WATER) and the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent, hereinafter PARTNERS when referred to collectively, and MEDFORD WATER, ASHLAND, CENTRAL POINT, EAGLE POINT, JACKSONVILLE, PHOENIX, and TALENT when referred to individually, and PARTNER CITIES when referring to ASHLAND, CENTRAL POINT, EAGLE POINT, JACKSONVILLE, PHOENIX, and TALENT. II. Recitals A. The PARTNERS all own and operate water systems that supply water to their respective customers; B. The PARTNERS recognize the vital importance of providing a reliable source of water to all their respective customers for public health, safety, and welfare and for sustaining economic development; C. The PARTNERS recognize the importance of water conservation, and each take actions to conserve their water supply. D. The PARTNERS have invested in and each hold water right(s) that are diverted and treated at the Duff Water Treatment Plant (WTP) located on the Rogue River, and understand the importance of strategically managing those water rights; E. The Duff WTP, owned by MEDFORD WATER, provides treated water to the PARTNERS and is a critical regional water supply facility. F. The PARTNER CITIES receive water treated at the Duff WTP under Treat and Transport contracts with MEDFORD WATER. These contracts include rates of water that the PARTNER CITIES can receive from the MEDFORD WATER's water supply system during identified time periods. G. The PARTNERS value the important role each utility plays in meeting the water supply needs of the Rogue Valley Region; H. The PARTNERS entered into a cooperative agreement for developing a water rights strategy in 2019, which resulted in development of a Final Report entitled WATER RIGHTS STRATEGY FOR PARTNER WATER PROVIDERS (February 2020). The cooperative agreement and report executive summary are included in Attachment 1; I. The WATER RIGHTS STRATEGY FOR PARTNER WATER PROVIDERS recommends Phase I of the Coordinated Water Rights Management and Sharing Plan, which includes a coordinated water rights certification strategy for water rights diverted at the Duff WTP and a PARTNER CITIES water sharing framework; J. The WATER RIGHTS STRATEGY FOR PARTNER WATER PROVIDERS recommends a Phase II of the Coordinated Water Rights Management and Sharing Plan to continue the water rights certification strategy for water rights diverted at the Duff WTP and a PARTNER CITIES and MEDFORD WATER water sharing framework. A separate IGA will need to be developed and approved for Phase II; K. The PARTNERS recognize that this IGA is related to Phase I of the Coordinated Water Rights Management and Sharing Plan; and L. The PARTNERS enter this agreement in a spirit of good will and mutual cooperation, understanding that entering this IGA for Phase I of a Cooperative Water Rights Management and Water Sharing Plan is intended to improve the current and long-term reliability of individual and collective water supplies and is in the highest public interest. III. Scope and Purpose To develop, refine and implement Phase I of a Coordinated Water Rights Management and Water Sharing Plan that includes a coordinated water rights certification strategy for water rights diverted at the Duff WTP and a PARTNER CITIES water sharing framework. This IGA does not address Phase II of a Coordinated Water Rights Management and Water Sharing Plan, which would be established in a separate IGA. Being a signatory to this IGA does not require a PARTNER to become a signatory to an IGA developed for Phase II. IV. Retention of Asset Ownership A. Each Partner will retain ownership of its water right(s). Nothing in this IGA will have the effect of conveying a water right to any other entity. B. MEDFORD WATER will retain ownership of the Duff WTP, the associated intake on the Rogue River, and all related infrastructure. Nothing in this IGA will have the effect of conveying any of MEDFORD WATER's water system to any other entity. V. Water Right Certification Coordination A. The PARTNERS developed a strategy for managing the timing of certification of their existing water use permits and transfers, which is described in the Water Rights Certification Strategy Table provided in Attachment 2. The table identifies the water rights that have been or can be certificated at the current Duff WTP capacity (70 cfs), and the permits and transfers to be certificated at each subsequent WTP capacity (100 cfs, 131 cfs, 162 cfs and 193 cfs). Except as provided in subsection D of this section, only the portion of the Water Rights Certification Strategy Table for the Duff WTP's existing capacity of 70 cfs is applicable to this IGA for Phase I of the Water Rights Management and Water Sharing Plan. B. The PARTNERS agree to submit claims of beneficial use (COBUs) and requests for water right certificates to the Oregon Water Resources Department (OWRD) only at times consistent with the portion of the Water Rights Certification Strategy Table for the Duff WTP's existing capacity of 70 cfs, except as provided in subsection D of this section. C. At least 14 days prior to submitting a COBU and request for water right certificate to OWRD, PARTNERS agree to provide the Managing Agency with written notice of their intention to file a COBU. D. The Water Rights Certification Strategy Table will be reviewed by the PARTNERS annually as described in Section VIII, and will be updated to reflect the issuance of water right certificates consistent with Water Rights Certification Strategy. E. Each PARTNER will continue to be responsible for maintaining its own water rights, which will include but is not limited to filing water use reports with OWRD, developing claims of beneficial use and requesting water right certificates, and developing water management and conservation plans. VI. Water Sharing A. Consistent with the PARTNER CITIES' contracts with MEDFORD WATER, each PARTNER CITY will use water under its individual water rights beginning May 1 of each year and ending September 30 of each year. B. By November 15 of each year, MEDFORD WATER will calculate the total volume of water used by each PARTNER CITY during the period of May 1 through September 30 based on meter readings for each city, referred to as each city's "Annual Metered Volume." The meters used to determine each PARTNER CITY'S "Annual Metered Volume" are listed in Attachment 3. 1. The owner of each meter will ensure its meter(s) are calibrated to manufacturer standards. 2. If a meter breaks or malfunctions the PARTNERS will use the best practicable information available to estimate water use. C. MEDFORD WATER will compare each PARTNER CITY'S Annual Metered Volume to the total volume of water authorized by each PARTNER CITY'S water rights (referred to as each PARTNER CITY'S "Total Authorized Water Volume") as shown in Attachment 4. D. The PARTNER CITIES will notify MEDFORD WATER of any changes to their Total Authorized Water Volume that occur during the May 1 through September 30 period. E. If a PARTNER CITY'S Annual Metered Volume exceeds its Authorized Water Volume, as provided in VI. C., MEDFORD WATER will subtract the Authorized Water Volume from the Annual Metered Volume to obtain that. PARTNER CITY'S "Volume of Excess Use" for the year. F. If a PARTNER CITY'S Annual Metered Volume is less than that city's Authorized Water Volume, as provided in VI. C., MEDFORD WATER will subtract the Annual Metered Volume from the Authorized Water Volume to obtain that PARTNER CITY'S "Excess Water Right Volume" for the year. G. For each PARTNER CITY with a Volume of Excess Use, MEDFORD WATER will allocate the Volume of Excess Use equally among all PARTNER CITIES with an Excess Water Right Volume for that year. MEDFORD WATER will allocate the Volume of Excess Use equally up to, but not in excess of, the PARTNER CITIES' Authorized Water Volumes. If equal allocation of a PARTNER CITY'S Volume of Excess Use would exceed one or more PARTNER CITY'S Authorized Water Volume, the Volume of Excess Use will be allocated equally among the PARTNER CITIES in the amount of the smallest Excess Water Right Volume. The remaining Volume of Excess Use will then be allocated equally among the remaining PARTNER CITIES with Excess Water Right Volume. This process will be repeated until the PARTNER CITY'S entire Volume of Excess Use has been allocated to other PARTNER CITIES. Attachment 5 provides an example of the intended process. H. Any PARTNER CITY with a Volume of Excess Use will provide compensation to PARTNER CITIES with Excess Water Right Volume according to the volume of water allocated to that PARTNER CITY, and the Method of Cost Allocation provided in Section VII. VII. Method of Cost Allocation A. By March 1 of each year, each PARTNER CITY will provide to MEDFORD WATER a copy of any Statement of Account or other invoices from the U.S. Army Corps of Engineers, or annual assessment from the Medford Irrigation District and/or Rogue River Irrigation District the PARTNER CITY received in the previous year related to their water rights associated with the Duff Water Treatment Plant as described in Attachment 2. B. Based on the information provided in subsection A., MEDFORD WATER will calculate the following total annual costs. An example of the calculations is provided in Attachment 6. 1. The Total Annual Operation and Maintenance (O&M) Costs for storage space for Lost Creek Reservoir will be calculated by adding together the annual O&M costs for Ashland, Jacksonville, Phoenix, and Talent. This cost is associated with 3,892 AF of storage space in the reservoir, as shown in Table I of Attachment 6; 2. The Total Annual Repair Replacement and Rehabilitation (RR&R) Costs for storage space for Lost Creek Reservoir will be calculated by adding together any annual RR&R costs for Ashland, Jacksonville, Phoenix, and Talent. This cost is associated with the 3,892 AF of storage space, as shown in Table 2 of Attachment 6. 3. The 5-year Rolling Average RR&R Cost for storage space for Lost Creek Reservoir will be calculated by adding together the Total Annual RR&R Costs for the preceding five years and dividing by 5. This calculation is shown in Table 3 in Attachment 6. 4. The Total Annual Assessment Costs will be calculated by adding together the annual costs charged to Central Point and Eagle Point by Medford Irrigation District and Rogue River Irrigation District. This cost is associated with the 3,123.7 AF for which the irrigation districts charge assessments, as shown in Table 4 of Attachment 6. 5. The Total Water Volume Associated with the Costs is 7,015.7 AF, which is calculated by adding 3,892 AF associated with storage space plus 3,123.7 AF associated with the irrigation districts, as shown in Table 5 of Attachment 6. C. The Average Annual Cost Per Acre Foot will be calculated as follows. 1. Calculate the Total Annual Cost by adding together the Total Annual O&M Cost for storage space, the Five -Year Rolling Average RR&R Cost, and the Total Annual Assessment Cost. 2. Calculate the Annual Average Cost Per Acre Foot by dividing the Total Annual Cost by the Total Water Volume Associated with the Costs (7,015.7 AF), as shown in Table 5 of Attachment 6. D. MEDFORD WATER will provide the PARTNER CITIES with the Average Annual Cost Per Acre Foot by March 30 of each year. E. Each year after completing the calculations described in Section VI., for each PARTNER CITY with a Volume of Excess Use, MEDFORD WATER will multiply the Volume of Excess Use allocated to each PARTNER CITY (determined according to Section VI. D.) by the Average Annual Cost Per Acre Foot to obtain the "Annual Cost for Excess Use" owed to each PARTNER CITY. F. By December 15 of each year, MEDFORD WATER will provide the PARTNER CITIES an Annual Summary Report of Water Sharing that includes the following information for the previous May through September: 1. Each PARTNER CITY'S Annual Metered Volume; 2. Each PARTNER CITY'S Authorized Water Volume; 3. Each PARTNER CITY'S Excess Water Right Volume, or Volume of Excess Use for the year; and 4. For each PARTNER CITY with a Volume of Excess Use, the volume of water allocated to each PARTNER CITY with an Excess Water Right Volume, and the associated Annual Cost for Excess Use. An example Annual Summary Report of Water Sharing is provided in Attachment 7. G. By January 15 of each year, the PARTNERS will meet to review the Annual Summary Report of Water Sharing, and will work in good faith to resolve any discrepancies raised by a PARTNER CITY. H. By February 15 of each year, each PARTNER CITY with a Volume of Excess Use shall pay the Annual Cost for Excess Use to other PARTNER CITIES as provided in the Annual Summary Report of Water Sharing. VIH. Annual Meeting A. Medford Water will schedule an annual meeting with the PARTNERS during the month of April each year at a time and location agreeable to the PARTNERS. B. Each PARTNER will, to the extent possible, have at least one representative at the annual meeting. C. Agenda items will include, but are not limited to, the following: 1. An explanation of the processes established by this IGA, as necessary. 2. Estimations provided by each PARTNER CITY of the amount of water it expects to use during the upcoming period of May 1 through September 30. 3. Any available estimations of water supply expected to be available during the upcoming period of May 1 through September 30 4. A review of the Water Rights Certification Strategy Table (the current version is provided in Attachment 2), and a discussion of any updates to the table that are needed or any plans to certificate a water right included in the table. 5. Coordination of any other activities regarding the Water Rights so that all Partners are apprised of actions by a Partner that may affect them. 6. Any amendments needed to this IGA. The process for adoption of amendments is provided in Section XIV. IX. Designation, Tasks and Powers of Managing Agency A. Medford Water shall perform the duties of the Managing Agency hereunder including but not limited to: 1. Coordinating use of the Partners' Rogue River water rights at the Duff Water Treatment Plant in accordance with the terms and conditions of this Agreement. 2. Schedule and convene meetings with the Partners in accordance with the terms of this Agreement and as necessary to meet the requirements of this Agreement, maintain public records in accordance with the Oregon Public Records Law and rules, policies and procedures of Medford Water, and provide administrative support. 3. Provide public communications and outreach, including response to public information, media or records requests in coordination with the Partner Cities. 4. Retain consultants, attorneys, auditors, accountants and other professional services to assist the Managing Agency in accordance with Managing Agency contracting rules. 5. Provide the Partners and their agents with reasonable access to books and records maintained by the Managing Agency specifically related to administration of this Agreement. 6. Perform ministerial and administrative tasks to implement this Agreement. B. The General Manager of Medford Water shall be the person authorized to act for the Managing Agency, unless the Medford Water Commission specifies otherwise. X. Governance A. Each Partner shall appoint a representative, elected or staff member, to receive notices, attend meetings as called and act as a liaison to the Partner's governing body. A Partner's representative shall serve at the discretion of the Partner's governing body, or the City Manager or City Administrator. B. The Representatives shall meet in accordance with the terms of this Agreement and as deemed necessary by the Managing Agency upon reasonable notice to carry out the terms and conditions of this Agreement. XI. Failure to Perform/Breach/Remedies A. If a Partner fails to perform any obligation or term of this Agreement, (Defaulting Partner) the Managing Agency will notify the Defaulting Partner in writing and request performance and cure. If the Defaulting Partner cures the default within 30 days of . notice or commences to diligently cure a default within 30 days and completes cure within a mutually agreed time, then the matter will be deemed resolved. B. If the default continues after notice and opportunity to cure, the Managing Agency and the Representative of the Defaulting Partner shall meet within 45 days to discuss and resolve. Other Partners (Remaining Partners) shall be apprised and may attend. C. If no satisfactory resolution is reached, the parties agree to mediate any disputes under ORS Chapter 36. XII. Termination and Withdrawal A. A Partner may elect to withdraw from this Agreement (Withdrawing Partner) by providing written notice to the Managing Agency no later than October 1 of each year. If timely notice is given, the withdrawal shall be effective on the following May 1. B. The Managing Agency will provide the Remaining Partners with timely notice of the withdrawal notice. C. Withdrawal from this Agreement will terminate the obligation to participate in water sharing under this agreement but will not affect any pre-existing agreements that may be operative. Withdrawal shall not relieve the Withdrawing Partner of any outstanding obligations remaining unpaid. D. Upon withdrawal, the Managing Agency will cause the Attachments to this Agreement affected by such Partner's withdrawal to be revised and adjusted as necessary to remove the Withdrawing Partner and its water rights, Authorized Water Volumes, and associated costs identified in the Attachments. The Managing Agency may create a new Attachment for addition to this Agreement to account for change in membership to identify the Partners, and their water rights, Authorized Water Volumes, and associated costs. E. The Managing Agency shall provide the Partner Cities with timely copies of the new or revised Attachment(s). F. This Agreement shall continue after withdrawal of a Partner unless dissolved as provided in Section XV, below. XIII. Representations By execution of this Agreement, each Partner represents to the others that the Agreement has been approved by the governing body and that the person executing the Agreement has full authority to do so and the Agreement is binding on the Partner. Further the designated Representative of the Partner is vested with authority to act on behalf of the Partner except for those decisions that require specific governing body approval: amendment and dissolution. XIV. Amendment A. A Partner seeking an amendment to the Agreement shall provide a notice to all other Partners that specifies the section(s) of the Agreement that the Partner seeks to amend, and the nature of the requested amendment. B. The proposed amendment shall be included in the agenda for the next annual meeting. C. This Agreement may be amended only by mutual written agreement of all the Partners, and the amended agreement will become effective on the next October 1 or as otherwise mutually agreed upon by the Partners. XV. Term, Dissolution and Winding Up A. This Agreement shall become effective on October 1, 2022, (effective date) and will continue for five years from the effective date or until the remaining Partners mutually agree to terminate or there is only one Partner remaining, whichever is sooner. B. This Agreement will automatically renew every five years on October 1 (fifth year anniversary date) without further action. C. If this Agreement is amended as provided in Section XIV, the amended agreement will automatically renew every five years from the effective date of the amended agreement without further action. XVI. Notices Any notice required to be given shall be sufficient if given electronically, personal delivery or regular U.S. Mail to the following. A Partner may change the recipient by written notice to the others. If to Medford Water: Medford Water Attn: General Manager 200 S. Ivy St. — Room 177 Medford, Oregon 97501 If to Ashland: City of Ashland Attn: City Manager 20 East Main Street Ashland, OR 97520 If to Central Point: City of Central Point Attn: City Manager 140 S. 3rd Street Central Point, OR 97502 If to Eagle Point: If to Jacksonville: If to Phoenix: If to Talent: Jordan Rooklyn PO Box 445 110 E Main St Talent, OR 97540 Attachment 1 Cooperative Agreement and Report Executive Summary Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Page IIof4 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER AMONG MEDFORD WATER COMMISSION, CITY OF ASHLAND, CITY OF CENTRAL POINT, CITY OF EAGLE POINT, CITY OF JACKSONVILLE, CITY OF PHOENIX, AND CITY OF TALENT This cooperative agreement (hereinafter "Agreement') is by and among Medford Water Commission and the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent, hereinafter PARTNERS when referred to collectively and MWC, ASHLAND, CENTRAL POINT, EAGLE POINT, JACKSONVILLE, PHOENIX, and TALENT when referred to individually. RECITALS A. The PARTNERS all own and operate water systems that supply water to their respective customers; B. The PARTNERS recognize the vital importance of providing a reliable source of water to all their respective customers for public health, safety, and welfare and for sustaining economic development; C. The PARTNERS value the important role each utility plays in meeting the water supply needs of the Rogue Valley Region (RVR); D. The PARTNERS enter this agreement in a spirit of good will and mutual cooperation, with the understanding that coordinating a Water Right Strategy (WRS) will improve the current and long-term reliability of individual and collective water supplies and is in the highest public interest; E. The PARTNERS understand that the WRS will document the current understanding of the water rights held by the jurisdictions in the RVR, and provide options to the PARTNERS on how to move forward with securing and allocating water supplies for the RVR that may be in the best interests of the Region as a whole, but it will not bind PARTNERS to any particular direction or action; and F. The PARTNERS recognize that developing a WRS is the first step and that a second step of adopting a WRS would require a second IGA that would then guide the adoption, implementation, and management of the WRS moving forward. It is understood that a second step may not be possible if there is not agreement on how to move forward with the WRS. G. The PARTNERS are willing to fund development of a WRS. AGREEMENT The PARTNERS agree to the following: RECITALS/PURPOSE The above recitals are true and correct and are specifically adopted and incorporated herein as the purpose of this Agreement. II. DEFINITIONS A. ASHLAND means City of Ashland. B. CENTRAL POINT means City of Central Point. C. EAGLE POINT means City of Eagle Point. D. JACKSONVILLE means City of Jacksonville. E. MWC means Medford Water Commission. 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER Page 12of4 F. OWRD means the Oregon Water Resources Department. G. PARTNERS means collectively the Medford Water Commission and the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent. H. PHOENIX means City of Phoenix. I. RVR is an abbreviation for Rogue Valley Region. J. STEERING COMMITTEE means a group comprised of at least a single voting representative from each of the PARTNERS. The Steering Committee function will be to oversee the implementation of this Agreement, to facilitate changes to it necessary to ensure its continued effectiveness in meeting the needs of the PARTNERS and to settle differences in interpretation of its provisions and execution. K. TALENT means City of Talent. L. WRS is an abbreviation for Water Right Strategy. Ill. RESPONSIBILITIES A. The PARTNERS: 1. Agree to form a STEERING COMMITTEE. 2. Agree not to move forward with any actions to certificate water rights at the MWC Duff Water Treatment Plant intake, except as provided in III.C, until a WRS is completed, or the term of this Agreement ends. 3. Agree to pay the identified, pro-rata costs of the development of a WRS as provided in Section IV (B) of this Agreement. B. MWC: 1. Agrees to award and administer a contract with GSI Water Solutions to develop a WRS as described in Section IV (A) of this Agreement. 2. Agrees to pay monthly invoices to GSI Water Solutions on behalf of the PARTNERS. C. PHOENIX: 1. Agrees not to request expedited processing of its claim of beneficial use under OWRD's Reimbursement Authority Program for Permit S-47672 until a WRS is completed, or the term of this agreement ends, whichever occurs first. 2. Agrees to notify the PARTNERS within a reasonable period of time in the event that OWRD begins review of its pending claim of beneficial use for Permit S-47672. IV. WATER RIGHT STUDY SCOPE AND COST A. The draft outline of the scope of work to develop a WRS is included as Exhibit A. The PARTNERS intend to collaboratively develop and establish a final scope of work after this agreement is executed. 2019 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER Page I3of4 B. The PARTNERS agree to share the cost of the WRS on a pro rata basis in proportion to their populations based on Portland State University's 2015 population data, as shown in Exhibit B. Exhibit B indicates preliminary costs. The total cost of the WRS is expected to be less than $80,000. Final pro-rata cost share will be determined at the time the contract with the consultant is signed. Payments by PARTNERS will be due quarterly and must be remitted to MWC within 30 days of invoice. V. DECISION MAKING PROCESS A. All decisions made under this Agreement, and during the course of the development of the WRS, shall be made through negotiations among the PARTNERS. B. The WRS does not bind any PARTNER(S) to any future action or direction proposed by the WRS. VI. LIABILITY, INDEMNITY AND HOLD HARMLESS A. INDEMNIFICATION. To the extent allowed by the Oregon Constitution and the Oregon Revised Statutes, and not to exceed monetary limits of the Oregon Tort Claim Act, the PARTNERS agree to defend, indemnify, and hold harmless each other from claims, liability or damages, including attorney fees, arising out of error, omission or act of negligence on the part of the indemnifying party, its officers, agents, or employees in the performance of this Agreement. B. STATUS. In providing the services specified in this Agreement (and any associated services) the PARTNERS are public bodies and maintain their public body status as specified in ORS 30.260. The PARTNERS understand and acknowledge that each retains all immunities and privileges granted them by the Oregon Tort Claims Act and any and all other statutory rights granted as a result of their status as local public bodies. VII. TERM AND TERMINATION The term of the Agreement is twelve months from the last date of execution, unless the STEERING COMMITTEE members unanimously agree in writing to extend that date. Any PARTNER may agree to terminate its participation in the Agreement at any time with 15-day written notice to the other PARTNERS, provided, however, that once a contract with the selected consultant has been signed, the terminating PARTNER agrees to pay its full pro-rata share of the cost of the consultant contract to MWC. 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER Page 14of4 In WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their proper officers on the dates noted below. "d � GYLY'(�f'�`Y' G�1>�'l. Brad Taylor (Ja 5, 2.019) Jan 25, 2019 Christopher ciayton (Jan 25, 019) Jan 25, 2019 Brad Taylor DATE Chris Clayton DATE General Manager City Manager Medford Water Commission City of Central Point Kelly lV1 / I �Feb Kelly Madding (Feb 22, _019) Feb 22, 2019 'L-1 Lam; 22, 2019 Kelly Madding DATE Henry Lawrence DATE City Administrator City Administrator City of Ashland City of Eagle Point Feb 25, 2019 Mar 18, 2019 Jeff Alvis DATE Aaron Prunty DATE City Administrator City Manager City of Jacksonville City of Phoenix Sandra snelliscv Sandra SpOliscy (Mar 18, 2019) Mar 18, 2019 Sandra Spelliscy DATE City Manager City of Talent 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER r7cGl S I Water Solutions, Inc. February 7, 2020 Executive Summary Water Rights Strategy for Partner Water Providers f. Introduction GSI Water Solutions, Inc. (GSI) is assisting the Partner Water Providers (Partners) to develop a water rights strategy. The Partners include the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent (jointly the Partner Cities) and Medford Water Commission (MWC).t In early 2019, the Partners signed a Cooperative Agreement to develop the strategy recognizing the benefits of mutual cooperation and the vital importance of providing source water to their respective customers for public health, safety and welfare, and for sustaining economic development. The water rights strategy focuses on the Partners' water rights and water supply associated with the MWC Duff Water Treatment Plant (Duff WTP) on the Rogue River. During the months of May through September (peak season), much of the MWC's water supply and all of the Partner Cities' water supply is treated at the Duff WTP. During this peak season period, the Partner Cities currently rely on water rights they have obtained and hold Treat and Transport agreements with the MWC. As the Partners plan for their long-term water supply needs, it is important that they have a full understanding of the status of their water rights and develop a common strategy to protect and secure them. The water rights strategy is intended to meet those needs. II. Process To develop the water rights strategy, GSI initially prepared a comprehensive water rights summary, which enabled the Partners to develop a shared understanding of the water rights at the Duff WTP. Next, GSI developed a consolidated water demand projection for each of the Partners, which included the maximum anticipated demands for the years 2030, 2040 and 2070. GSI then compared the Partners' individual and collective demands with their water rights. This evaluation showed that some of the Partners' water rights will likely provide them with sufficient supply past the year 2070, while other Partners' water rights do not provide sufficient water supply to meet current demands. The evaluation also showed that if the Partners shared their water supplies, they would have sufficient supply to meet all of their demands through 2070. 1 MWC's customers include customers within the City of Medford, White City, Elk City and Charlotte Ann Water Districts, as well as other customers served by MWC outside of its service area (Outside Customers). EXECUTIVE SUMMARY- WATER RIGHTS STRATEGY FOR PROJECT PARTNERS GSI WATER SOLUTIONS, INC. III. Goals, Interests and Priorities for Water Rights Strategy The above -described differences between the Partners' water rights and projected water demands demonstrate the value of a strategy related to the Partner water rights at the Duff WTP. The strategy is intended to meet the following goals, interests, and priorities: • Ensure that the water rights at the Duff WTP are strategically managed. • Secure a long-term water supply for all Partners. • Eliminate the need for Partners to unnecessarily purchase additional water rights. • Retain each Partners' ownership of its existing water rights and create opportunities to obtain value for the water rights. • Treat White City, Elk City and Charlotte Ann Water Districts, and other customers served by MWC outside of its service area (Outside Customers) equitably. IV. Strategic Management of Partners' Existing Water Rights A. Reasons for Developing Coordinated Approach to Water Rights and Water Use GSI recommends that the Partners consider developing a coordinated approach to managing their water rights and water supply. This coordination could include not only coordinated management of the water rights at the Duff WTP, but also creation of an opportunity for the Partners to share their combined water supplies. Coordination will also be necessary to strategically secure the 20 existing water rights at the Duff WTP. Additionally, if the Partners established a combined water supply, it could address the imbalances between water rights and projected water demands that have been previously described, and eliminate the need for the purchase of additional water rights to meet their individual needs. Further, establishing a combined water supply could provide the Partners with some level of supply redundancy; that is, the arrangement could enable each Partner to obtain water from more than one source of supply. B. Conceptual Framework for Water Supply Sharing GSI and the Partners considered multiple approaches to sharing water supply. Based on GSI's understanding of the Partners' goals, interests, and priorities, as well as the Partners' water supplies and demands, GSI recommended an approach that provides an opportunity to meet the Partners' near -term and long-term goals without jeopardizing any of the Partners' water rights. In addition, the Partners would pool their water rights to establish a diverse water rights portfolio. Under the recommended option, the Partner Cities and MWC would enter into an intergovernmental agreement (IGA) to work together on regional water supply. The IGA would describe how the water rights and water supply would be shared, which would occur in two phases. Until the Duff WTP capacity was expanded to 100 cfs in approximately 2028, the Partner Cities and the Outside Customers would share their water supplies. MWC could track EXECUTIVE SUMMARY -WATER RIGHTS STRATEGYFOR PROJECT PARTNERS GSI WATER SOLUTIONS, INC. each entity's water use and compare that with the entity's individual water rights to determine whether any compensation was required for use of another entity's water rights. Additionally, the Partners would follow an agreed -upon strategy to request water right certificates for their water rights. In the second phase of this option, the MWC would modify its agreements with the Partner Cities and Outside Customers and would begin to provide them with surplus water. The water rights held by the MWC and the Partner Cities would be placed into a regional water supply pool, which would be managed by the MWC. This would result in the Partners having a diverse water supply portfolio. The Partner Cities would retain ownership of their water rights, and the IGA would include a mechanism by which any of the Partner Cities could withdraw from the group. The MWC would compensate the Partner Cities for any Operation and Management (O&M) costs it incurred associated with contracts for stored water that was being used by the Partners. The MWC would also provide Partner Cities with compensation (based on negotiations between each Partner City and the MWC) for water rights used by the Partners. The rate the Partner Cities pay to the MWC would reflect these expenses. V. Summary of Recommended Option The option recommended by GSI provides an approach to meeting the Partners' near -term and long-term water supply goals without jeopardizing any of the Partners' collective water rights. In the near term, the recommended option provides a method for the Partner Cities and MWC on behalf of the Outside Customers to initiate a shared water supply strategy. It then changes relatively quickly to reset the relationship with the MWC, which would then provide surplus water supply to the Partner Cities and Outside Customers. In .addition, the Partners would pool their water rights to establish a diverse water rights portfolio. Finally, this option minimizes water rights transactions, such as extensions of time for permits and transfers, and decreases the risks associated with these transactions. VI. Next Steps Establishing a water sharing agreement will require completing a series of steps or actions. The following is a brief summary of some of the actions that will be required: • The Partners' staff communicate with their councils/boards, and seek approval to develop a scope of work to develop an IGA. • Staff develop the scope of work for drafting the IGA, and take the scope of work to city councils/ board for approval. • Staff develop a draft IGA. 0 Staff take the draft IGA to their city councils/board for review and approval. Attachment 2 Water Rights Certification Strategy Table Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Water Rights Certification Stratevv Table Action Rate ? Development (cfs) Deadline Total Rate in Water Right Certificate Status (cfs) Duff WTP - Existing Capacity — 70 cis Current Status -Existing Certificates and Pending COBUs Central Point's Certificate 93754 1.13 WA 65.26 Central Point's Cart' 93755 1.13 WA Eagle Point's Certificate 88552 0.90 WA Eagle Point's Certificate 89864 1.25 WA Jacksonville's Certificate 87360 No rate (400 AF) WA MWC's Certificate 86832 60.85 WA Talent's Certificate 91134 No rate (533 AF) WA Ashland's Certificate 96166 No rate (550.6 AF) WA Central Point's Transfer T-1 0465 1.20 10/1/2014 66.46 Eagle Point's Transfer T-10527 0.50 10/1/2013 66.96 Phoenix's Permit S-47672 (COBU on hold) 5.0 (and 400 AF) 1W112001 (71.96) Transactions Certificate Central Point's TransferT-9900 1.846 10/1/2030 68.806 Certificate Eagle Point's Transfer T-1 0614 1.15 10/1/2030 69.956 Total at this capacity 69.956 cis Duff WTP Capacity — 100 cfs in approximately 2028 Certificate Jacksonville's Permit S-54974' No rate (200 AF) 11/19/2035 69.956 cfs Certificate Talent's Permit S-53898' No rate (759 AF) 10/1/2065 69.956 cis Certificate Ashland's Permit S-54337• No rate (449.4 AF) 9/7/2021 t 69.956 Certificate Phoenix's Permit S-47672 5.0 (and 400 AF) 110/1/20012 74.956 Certificate Eagle Point's Transfer T-1 0960 1.77 10/1/2030 76.726 Certificate Eagle Point's Transfer T-12221 0.7 10/1/2030 77.426 Certificate Phoenix's Permit S-52650 3.1 10/1/2030 80.526 Partially certificate MWC's Permit S54935 (estimated rate) 19.474 10/1/2056 100 Total at this capacity 100 cfs Duff WTP Capacity — 131 cfs in approximately 2036 Partially certificate MWC's Permit S-23210 31 10/1/2050 131 Total at this capacity 131 cfs Duff WTP Capacity — 162 cis (TBD) Partially certificate remainder of MWC's Permit S-23210 8.15 10/1/2050 139.15 Partially certificate MWC's Permit S54935 (estimated rate) 22.85 10/1/2056 162.0 Extend MWC's Permit S-54935 as needed 10/1/2056 Total at this capacity 162.0 cfs Duff WTP Capacity —193 cfs (TBD) Certificate remainder of MWC's Permit S-54935 (estimated rate) 7.676 10/1/2056 169.676 Total at this capacity 169.676 cfs � Permit extension pending at OWRD. R COBU pending at OWRD. * These steps assume that certificating the "volume -only" water rights would not negatively impact the ability to certificate the other Partner water rights, and all elements of seeking a certificate can be met. AF: acre-feet; cfs: cubic feet per second; COBU: claim of beneficial use; MWC: Medford Water Commission Attachment 3 Water Meters Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Meters and Information Source Documentation Water User Meter Description Source of Information Notes: Central Point BEALL MASTER MWC Data Export Central Point HOPKINS MWC Data Export Central Point VILAS MASTER 10" MWC Data Export Eagle Point AVENUE G NORTH 8" MWC Data Export Eagle Point AVENUE G SOUTH 6" MWC Data Export Eagle Point STEVENS & RILEY 4" MWC Data Export Eagle Point VISTA POINTE #1 MWC Data Export Eagle Point VISTA POINTE #2 MWC Data Export Jacksonville MADRONE/OAKGROVE 6" MWC Data Export Phoenix MWC Garfield St and Kings Avenue Meter MWC Data Export Phoenix has two connections to the MWC system, one direct connection at Garfield and Kings and the connection via TAP. This is the direct connection. Phoenix TAP TAP Master Meter on Samike Drive less Talent Meter RVCOG Monthly Utility Billing Data Phoenix TAP usage is the equal to the total from the TAP master meter at Samike, less what is measured at the Talent Meter on the TAP line. Talent Talent Meter at intersection Bear Creek Drive and Main Street in Phoenix less Ashland usage RVCOG Monthly Utility Billing Data Talent usage is the total of the Talent meter, less measured Ashland usage. Ashland Creel Road and Highway 97 RVCOG Monthly Utility Billing Data Attachment 4 Participating Partner Cities' Authorized Water Volumes Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Partner Cities' Authorized Water Volumes Authorized Water Volume Water Right From Water Right (acre-feet) Calculated from Rate (acre-feet) Total Water Right (acre-feet) Limitations' Total Authorized Water Volume (acre-feet) Ashland Permit S-54337 449.4 449.4 Certificate 96166 550.6 550.6 Total 1,000 1,000 Central Point Transfer T-9900 666.0 666.0 Certificate 93754 412.4 412.4 Certificate 93755 412.4 412.4 Transfer T-10465 438.0 438.0 Total 1,104.0 824.8 1,928.8 Eagle Point Certificate 88552 321.3 321.3 Transfer T-10527 181.5 181.5 Transfer T-10614 273.7 273.7 Transfer T-10960 520.3 520.3 Certificate 89864 356.94 356.94 Transfer T-12221 207.2 207.2 Total 1,860.94 1,860.94 Jacksonville Certificate 87360 400.0 400.0 Permit 5-54974 200.0 200.0 Total 600 600 Phoenix Permit 5-47672 400 1,5173 1,9174 Permit 5-52650 600 600 Total 1,000 1,517 2,517 Talent Permit 5-53898 759.0 759.0 Certificate 91134 533.0 533.0 Tota 1 1,292 1,292 Partner Cities' Authorized Water Volumes 6,856.94 2,341.8 9,198.74 1 Limitations on a Partner City's authorized volume of water could include regulation of their water right by the OWRD watermaster, or limitations on use provided in a final order approving their water management and conservation plan. zTotal Authorized Water Volume equals the total water right minus limitations. s Based on 5 cfs from May 1 through September 30. 4 Final authorized volume will be determined at time OWRD issues certificate for this permit. Attachment 5 Example Allocation of Excess Water Use Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Example Allocation of Excess Water Use: Four cities hold water rights and use water as follows. Medford Water would calculate excess water use and unused water rights as shown in the column labeled "difference" city Water Rights Water Use A Difference A City A 500 1,490 -990 (excess water use) City B 1,000 750 250 unused water rights) City C 1,500 1,000 500 (unused water rights) City D 2,000 1,000 1,000 unused water rights) Medford Water would calculate the compensation that City A (the only City with excess water use) would need to provide to Cities B, C and D (who had unused water rights) as follows: o Total excess use - 990 AF o Cities B, C, D - each compensated for 250 AF (up to maximum of City B's water rights), which accounts for 750 AF o Remaining excess use - 240 AF o Cities C and D - each compensated for 120 AF (for a total of 370 AF each) Attachment 6 Example Calculation of Average Annual Cost per Acre -Foot Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Table 1: Example Calculation of Total Annual 0&M Costs for Storage Space (See VII.B.1. in IGA) Name Application Permit Contracted StorageTotal Space (AF) O&M Cost (2020) Ashland S-85733 S-54377 1000 $24,132.50 Jacksonville S-80641 S-53445 400 $9,653.00 Jacksonville S-88088 S-54974 200 $4,826.50 Phoenix S-60890 S-47672 400 $9,653.00 Phoenix S-71996 S-52650 600 $14,479.50 Talent S-84029 S-53898 1292 $31,179.19 Totals 3,892 $93,923.69 Table 2: Example Calculation of Total RR&R Costs for Storage Space (See VII.B.2. in IGA) Name Application Permit Contracted Storage Space (AF) Total RR&R Cost (2020) Ashland S-85733 S-54377 1000 $0 Jacksonville S-80641 S-53445 400 $0 Jacksonville S-88088 S-54974 200 $0 Phoenix S-60890 S-47672 400 $0 Phoenix S-71996 S-52650 600 $0 Talent S-84029 S-53898 1292 $0 Totals 3,892 $0 Table 3: Example Calculation of 5-year Rolling Average RR&R Cost (See VII.B.3. in IGA) Year RR&R Cost 2016 $0.00 2017 $0.00 2018 $0.00 2019 $0.00 2020 $0.00 Total $0.00 5-year Rolling Average (Divide Total by 5) $0.00 Table 4: Example Calculation of Total Annual Assessment Costs (See VII.B.4. in IGA) Holder Type of Right Certificate Transfer Maximum Rate (cfs) Maximum Volume (AF) Period of Use Volume Associated with Irrigation Districts (AF) Annual Assessment Costs (2020) Central Point Non -District T-9900 1.846 666 1-Apr 1-Nov N/A - Non- District Water Right N/A - Non - District Water Right Central Point Non -District Central Point Non -District Central Point Non -District Central Point District 93754 1.13 1-Apr 1-Oct 412.4 Central Point District 93755 1.13 1-Apr 1-Oct 412.4 Central Point District T-10465 1.2 447.6 1-Apr 1-Oct 438.0 $30,677.22 Central Point District Central Point District Central Point District Central Point District Eagle Point District 88552 0.9 321.3 1-Apr 31-Oct 321.3 Eagle Point District T-10527 0.5 181.5 1-Apr 31-Oct 181.5 Eagle Point District T-10614 1.15 273.7 1-Apr 31-Oct 273.7 Eagle Point District T-10960 1.77 520.3 1-Apr 1-Oct 520.3 $40,800.00 Eagle Point District 1-Apr 31-Oct Eagle Point District 89864 1.25 356.94 1-Apr 31-Oct 356.94 Eagle Point District T-12221 0.7 207.2 1-Apr 1-Oct 207.2 Eagle Point District 1-Apr 31-Oct Totals 3,123.7 $71,477.22 Table 5: Example Calculation of Average Annual Cost Per Acre Foot (See VII.B.S. and VII.C. in IGA) Annual Water Volumes Costs (2020) Associated with the Costs (AF) Total Annual O&M Cost For $93 ,923.69 Storage Space 3,892 5-Year Rolling Average RR&R Cost $0.00 for Storage Space Total Annual Assessment Cost from $71 ,477.22 3,123.7 Irrigation Districts Totals 1 $165,400.91 7,015.70 Annual Average Cost Per Acre Foot: (Divide Total Annual Cost by the Total Water $23.58 Volume Associated with the Costs) Attachment 7 Example Annual Summary Report of Water Sharing Agreement Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Table 1: Example - Volume of Water Use, Water Purchased, and Water Sold Volume of Authorized Water Authorized Annual Excess Use/ Volume Water Metered Excess Water Remaining After Volume Volume Water Right Water Volume Volume Sold Purchase/Sale Partner City (AF/season) (AF) Volume (AF) Purchased (AF) (AF) (AF) Central Point 1928.8 2023.1 -94.4 94.4 0.0 0.0 Eagle Point 1860.9 1050.5 810.5 0.0 18.9 791.6 Ashland 1000.0 0.0 1000.0 0.0 18.9 981.1 Jacksonville 600.0 529.4 70.6 0.0 18.9 51.7 Phoenix 2,517.0 540.5 1,976.5 0.0 18.9 1,957.6 Talent 1292.0 559.3 732.7 0.0 18.9 713.9 Table 2: Example - Total Cost Paid and Received by each Partner City Average Annual Cost ($/AF) Water Volume Purchased (AF) Total Paid ($) Water Volume Sold (AF) Total Received ($) Central Point $23.58 94.4 $2,225.13 0.0 $0.00 Eagle Point $23.58 0.0 $0.00 18.9 $445.03 Ashland $23.58 0.0 $0.00 18.9 $445.03 Jacksonville $23.58 0.0 $0.00 18.9 $445.03 Phoenix $23.58 0.0 $0.00 18.9 $445.03 Talent $23.58 0.0 $0.00 18.9 $445.03 Total 94.4 $2,225.13 94.4 $2,225.13 Table 3: Example - Matrix of Costs Paid by and to Each Partner City Central Point I E Central Point Eagle Point $0.00 Ashland $0.00 Jacksonville $0.00 Phoenix $0.00 Talent $0.00 Total Received $0.00 Receives 3gle Point Ashland Jacksonville Phoenix $445.03 $445.03 $445.03 $445.03 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $445.03 $445.03 $445.03 $445.03 Talent Total Paid $445.03 $2,225.13 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $445.03 Page 11of4 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER AMONG MEDFORD WATER COMMISSION, CITY OF ASHLAND, CITY OF CENTRAL POINT, CITY OF EAGLE POINT, CITY OF JACKSONVILLE, CITY OF PHOENIX, AND CITY OF TALENT This cooperative agreement (hereinafter "Agreement") is by and among Medford Water Commission and the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent, hereinafter PARTNERS when referred to collectively and MWC, ASHLAND, CENTRAL POINT, EAGLE POINT, JACKSONVILLE, PHOENIX, and TALENT when referred to individually. RECITALS A. The PARTNERS all own and operate water systems that supply water to their respective customers; B. The PARTNERS recognize the vital importance of providing a reliable source of water to all their respective customers for public health, safety, and welfare and for sustaining economic development; C. The PARTNERS value the important role each utility plays in meeting the water supply needs of the Rogue Valley Region (RVR); D. The PARTNERS enter this agreement in a spirit of goodwill and mutual cooperation, with the understanding that coordinating a Water Right Strategy (WRS) will improve the current and long-term reliability of individual and collective water supplies and is in the highest public interest; E. The PARTNERS understand that the WRS will document the current understanding of the water rights held by the jurisdictions in the RVR, and provide options to the PARTNERS on how to move forward with securing and allocating water supplies for the RVR that may be in the best interests of the Region as a whole, but it will not bind PARTNERS to any particular direction or action; and F. The PARTNERS recognize that developing a WRS is the first step and that a second step of adopting a WRS would require a second IGA that would then guide the adoption, implementation, and management of the WRS moving forward. It is understood that a second step may not be possible if there is not agreement on how to move forward with the WRS. G. The PARTNERS are willing to fund development of a WRS. AGREEMENT The PARTNERS agree to the following: RECITALS/PURPOSE The above recitals are true and correct and are specifically adopted and incorporated herein as the purpose of this Agreement. DEFINITIONS A. ASHLAND means City of Ashland. B. CENTRAL POINT means City of Central Point. C. EAGLE POINT means City of Eagle Point. D. JACKSONVILLE means City of Jacksonville. E. MWC means Medford Water Commission. 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER Page 12of4 F. OWRD means the Oregon Water Resources Department. G. PARTNERS means collectively the Medford Water Commission and the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent. H. PHOENIX means City of Phoenix. I. RVR is an abbreviation for Rogue Valley Region. J. STEERING COMMITTEE means a group comprised of at least a single voting representative from each of the PARTNERS. The Steering Committee function will be to oversee the implementation of this Agreement, to facilitate changes to it necessary to ensure its continued effectiveness in meeting the needs of the PARTNERS and to settle differences in interpretation of its provisions and execution. K. TALENT means City of Talent. L. WRS is an abbreviation for Water Right Strategy, III. RESPONSIBILITIES A. The PARTNERS: 1. Agree to form a STEERING COMMITTEE. 2. Agree not to move forward with any actions to certificate water rights at the MWC Duff Water Treatment Plant intake, except as provided in III.C, until a WRS is completed, or the term of this Agreement ends. 3. Agree to pay the identified, pro-rata costs of the development of a WRS as provided in Section IV (B) of this Agreement. NEW 1. Agrees to award and administer a contract with GSI Water Solutions to develop a WRS as described in Section IV (A) of this Agreement. 2. Agrees to pay monthly invoices to GSI Water Solutions on behalf of the PARTNERS. C. PHOENIX: 1. Agrees not to request expedited processing of its claim of beneficial use under OWRD's Reimbursement Authority Program for Permit S-47672 until a WRS is completed, or the term of this agreement ends, whichever occurs first. 2. Agrees to notify the PARTNERS within a reasonable period of time in the event that OWRD begins review of its pending claim of beneficial use for Permit S-47672. IV. WATER RIGHT STUDY SCOPE AND COST A. The draft outline of the scope of work to develop a WRS is included as Exhibit A. The PARTNERS intend to collaboratively develop and establish a final scope of work after this agreement is executed. 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER Page 13of4 The PARTNERS agree to share the cost of the WRS on a pro rata basis in proportion to their populations based on Portland State University's 2015 population data, as shown in Exhibit B. Exhibit B indicates preliminary costs. The total cost of the WRS is expected to be less than $80,000. Final pro-rata cost share will be determined at the time the contract with the consultant is signed. Payments by PARTNERS will be due quarterly and must be remitted to MWC within 30 days of invoice. V. DECISION MAKING PROCESS A. All decisions made under this Agreement, and during the course of the development of the WRS, shall be made through negotiations among the PARTNERS. B. The WRS does not bind any PARTNER(S) to any future action or direction proposed by the WRS. VI. LIABILITY, INDEMNITY AND HOLD HARMLESS A. INDEMNIFICATION. To the extent allowed by the Oregon Constitution and the Oregon Revised Statutes, and not to exceed monetary limits of the Oregon Tort Claim Act, the PARTNERS agree to defend, indemnify, and hold harmless each other from claims, liability or damages, including attorney fees, arising out of error, omission or act of negligence on the part of the indemnifying party, its officers, agents, or employees in the performance of this Agreement. B. STATUS. In providing the services specified in this Agreement (and any associated services) the PARTNERS are public bodies and maintain their public body status as specified in ORS 30,260. The PARTNERS understand and acknowledge that each retains all immunities and privileges granted them by the Oregon Tort Claims Act and any and all other statutory rights granted as a result of their status as local public bodies. VII. TERM AND TERMINATION The term of the Agreement is twelve months from the last date of execution, unless the STEERING COMMITTEE members unanimously agree in writing to extend that date. Any PARTNER may agree to terminate its participation in the Agreement at any time with 15-day written notice to the other PARTNERS, provided, however, that once a contract with the selected consultant has been signed, the terminating PARTNER agrees to pay its full pro-rata share of the cost of the consultant contract to MWC. 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER Page 14of4 In WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their proper officers on the dates noted below. A Gill l _ Brad Taylor (Ja 5, 2019) Jan 25, 2019 Christopher C ayton (Jan Jan 25, 2019 Brad Taylor DATE Chris Clayton DATE General Manager City Manager Medford Water Commission City of Central Point LWY Naddinja Kelly Madding (Feb 22, 019) Kelly Madding City Administrator City of Ashland Jeff Ivis (Feb 25, 2019) Feb 22, 2019 IIt„ry l , ,r eb 22, 2019 DATE Henry Lawrence DATE City Administrator City of Eagle Point Feb 25, 2019 Jeff Alvis DATE City Administrator City of Jacksonville Sandra s olliscy l df, S ;: "',;(_ I,Iar 18, 2019) Mar 18, 2019 Sandra Spelliscy DATE City Manager City of Talent Aaron PrLmty (Mar 18, 2 9) Aaron Prunty City Manager City of Phoenix Mar18,2019 DATE 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER r7cGlS! Water Solutions, Inc. February 7, 2020 Executive Summary Water Rights Strategy for Partner Water Providers I. Introduction GSI Water Solutions, Inc. (GSI) is assisting the Partner Water Providers (Partners) to develop a water rights strategy. The Partners include the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent (jointly the Partner Cities) and Medford Water Commission (MWC).1 In early 2019, the Partners signed a Cooperative Agreement to develop the strategy recognizing the benefits of mutual cooperation and the vital importance of providing source water to their respective customers for public health, safety and welfare, and for sustaining economic development. The water rights strategy focuses on the Partners' water rights and water supply associated with the MWC Duff Water Treatment Plant (Duff WTP) on the Rogue River. During the months of May through September (peak season), much of the MWC's water supply and all of the Partner Cities' water supply is treated at the Duff WTP. During this peak season period, the Partner Cities currently rely on water rights they have obtained and hold Treat and Transport agreements with the MWC. As the Partners plan for their long-term water supply needs, it is important that they have a full understanding of the status of their water rights and develop a common strategy to protect and secure them. The water rights strategy is intended to meet those needs. II. Process To develop the water rights strategy, GSI initially prepared a comprehensive water rights summary, which enabled the Partners to develop a shared understanding of the water rights at the Duff WTP. Next, GSI developed a consolidated water demand projection for each of the Partners, which included the maximum anticipated demands for the years 2030, 2040 and 2070. GSI then compared the Partners' individual and collective demands with their water rights. This evaluation showed that some of the Partners' water rights will likely provide them with sufficient supply past the year 2070, while other Partners' water rights do not provide sufficient water supply to meet current demands. The evaluation also showed that if the Partners shared their water supplies, they would have sufficient supply to meet all of their demands through 2070. 1 MWC's customers include customers within the City of Medford, White City, Elk City and Charlotte Ann Water Districts, as well as other customers served by MWC outside of its service area (Outside Customers). EXECUTIVE SUMMARY -WATER RIGHTS STRATEGY FOR PROJECT PARTNERS GSI WATER SOLUTIONS, INC. III. Goals, Interests and Priorities for Water Rights Strategy The above -described differences between the Partners' water rights and projected water demands demonstrate the value of a strategy related to the Partner water rights at the Duff WTP. The strategy is intended to meet the following goals, interests, and priorities: • Ensure that the water rights at the Duff WTP are strategically managed. • Secure a long-term water supply for all Partners. • Eliminate the need for Partners to unnecessarily purchase additional water rights. • Retain each Partners' ownership of its existing water rights and create opportunities to obtain value for the water rights. • Treat White City, Elk City and Charlotte Ann Water Districts, and other customers served by MWC outside of its service area (Outside Customers) equitably. IV. Strategic Management of Partners' Existing Water Rights A. Reasons for Developing Coordinated Approach to Water Rights and Water Use GSI recommends that the Partners consider developing a coordinated approach to managing their water rights and water supply. This coordination could include not only coordinated management of the water rights at the Duff WTP, but also creation of an opportunity for the Partners to share their combined water supplies. Coordination will also be necessary to strategically secure the 20 existing water rights at the Duff WTP. Additionally, if the Partners established a combined water supply, it could address the imbalances between water rights and projected water demands that have been previously described, and eliminate the need for the purchase of additional water rights to meet their individual needs. Further, establishing a combined water supply could provide the Partners with some level of supply redundancy; that is, the arrangement could enable each Partner to obtain water from more than one source of supply. B. Conceptual Framework for Water Supply Sharing GSI and the Partners considered multiple approaches to sharing water supply. Based on GSI's understanding of the Partners' goals, interests, and priorities, as well as the Partners' water supplies and demands, GSI recommended an approach that provides an opportunity to meet the Partners' near -term and long-term goals without jeopardizing any of the Partners' water rights. In addition, the Partners would pool their water rights to establish a diverse water rights portfolio. Under the recommended option, the Partner Cities and MWC would enter into an intergovernmental agreement (IGA) to work together on regional water supply. The IGA would describe how the water rights and water supply would be shared, which would occur in two phases. Until the Duff WTP capacity was expanded to 100 cfs in approximately 2028, the Partner Cities and the Outside Customers would share their water supplies. MWC could track EXECUTIVE SUMMARY -WATER RIGHTS STRATEGYFOR PROJECT PARTNERS GSI WATER SOLUTIONS, INC. each entity's water use and compare that with the entity's individual water rights to determine whether any compensation was required for use of another entity's water rights. Additionally, the Partners would follow an agreed -upon strategy to request water right certificates for their water rights. In the second phase of this option, the MWC would modify its agreements with the Partner Cities and Outside Customers and would begin to provide them with surplus water. The water rights held by the MWC and the Partner Cities would be placed into a regional water supply pool, which would be managed by the MWC. This would result in the Partners having a diverse water supply portfolio. The Partner Cities would retain ownership of their water rights, and the IGA would include a mechanism by which any of the Partner Cities could withdraw from the group. The MWC would compensate the Partner Cities for any Operation and Management (O&M) costs it incurred associated with contracts for stored water that was being used by the Partners. The MWC would also provide Partner Cities with compensation (based on negotiations between each Partner City and the MWC) for water rights used by the Partners. The rate the Partner Cities pay to the MWC would reflect these expenses. V. Summary of Recommended Option The option recommended by GSI provides an approach to meeting the Partners' near -term and long-term water supply goals without jeopardizing any of the Partners' collective water rights. In the near term, the recommended option provides a method for the Partner Cities and MWC on behalf of the Outside Customers to initiate a shared water supply strategy. It then changes relatively quickly to reset the relationship with the MWC, which would then provide surplus water supply to the Partner Cities and Outside Customers. In addition, the Partners would pool their water rights to establish a diverse water rights portfolio. Finally, this option minimizes water rights transactions, such as extensions of time for permits and transfers, and decreases the risks associated with these transactions. VI. Next Steps Establishing a water sharing agreement will require completing a series of steps or actions. The following is a brief summary of some of the actions that will be required: • The Partners' staff communicate with their councils/boards, and seek approval to develop a scope of work to develop an IGA. • Staff develop the scope of work for drafting the IGA, and take the scope of work to city councils/ board for approval. • Staff develop a draft IGA. 0 Staff take the draft IGA to their city councils/board for review and approval. Attachment 2 Water Rights Certification Strategy Table Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Water Rights Certification Strategy Table .- pment Ac on (cfs) Deadline Total Rate in Water Right Certificate Status (cfs) TP - Existing Capacity — 70 cfs 7Central nt Status - Existing Certificates and Pending COBUs Point's Certificate 93754 1.13 WA 65.26 ral Point's Certificate 93755 1.13 WA Eagle Point's Certificate 88552 0.90 N/A Eagle Point's Certificate 89864 1.25 N/A Jacksonville's Certificate 87360 No rate (400 AF) N/A MWC's Certificate 86832 60.85 WA Talent's Certificate 91134 No rate (533 AF) N/A Central Point's Transfer T-1 0465 1.20 10/1/2014 66.46 Eagle Point's Transfer T-10527 0.50 10/1/2013 66.96 Phoenix's Permit S-47672 (COBU on hold)* 5.0 101112001 (71.96) Transactions Certificate Central Point's TransferT-9900 1.846 10/1/2030 68.806 Certificate Eagle Point's Transfer T-10614 1.15 10/1/2030 69.956 Certificate Ashland's Permit S54337* No rate (1,000 AF) 9/7/2021 69.956 Total at this capacity 69.956 cis Duff WTP Capacity — 100 cfs in approximately 2028 Certificate Jacksonville's Permit S-54974` No rate (200 AF) 11/19/2035 69.956 cis Certificate Talent's Permit S-53898' No rate (759 AF) 10/1/2065 69.956 cfs Certificate Phoenix's Permit S-47672 5.0 10/1/2001 74.956 Certificate Eagle Point's Transfer T-1 0960 1.77 10/1/2030 76.726 Certificate Eagle Point's Transfer T-12221 0.7 10/1/2030 77.426 Certificate Phoenix's Permit S-52650 3.1 10/1/2030 80.526 Partially certificate MWC's Permit S-54935 (estimated rate) 19.474 1011/2056 100 Total at this capacity 100 cfs Duff WTP Capacity — 131 cfs in approximately 2036 Partially certificate MWC's Permit S-23210 31 10/1/2050 131 Total at this capacity 131 cfs Duff WTP Capacity — 162 cfs (TBD) Partially certificate remainder of MWC's Permit S-23210 8.15 10/1/2050 139.15 Partially certificate MWC's Permit S-54935 (estimated rate) 22.85 10/1/2056 162.0 Extend MWC's Permit S-54935 as needed i 10/1/2056 Total at this capacity 162.0 cfs Duff WTP Capacity — 193 cfs (TBD) Certificate remainder of MWC's Permit S-54935 (estimated rate) 7.676 10/1/2056 169.676 Total at this capacity 1 169.676 cfs Notes * These steps assume that certificating the -volume-only" water rights would not negatively impact the ability to certificate the other Partner water rigltts, and all elements of seeking a certificate can be met. AF: acre-feet cfs: cubic feet per second COBU: claim of beneficial use MWC Medford Water Commission Attachment 3 Water Meters Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Meters and Information Source Documentation Water User Meter Description Source of Information Notes: Central Point BEALL MASTER MWC Data Export Central Point HOPKINS MWC Data Export Central Point VILAS MASTER 10" MWC Data Export Eagle Point AVENUE G NORTH 8" MWC Data Export Eagle Point AVENUE G SOUTH 6" MWC Data Export Eagle Point STEVENS & RILEY4" MWC Data Export Eagle Point VISTA POINTE #1 MWC Data Export Eagle Point VISTA POINTE #2 MWC Data Export Jacksonville MADRONE/OAKGROVE 6" MWC Data Export Phoenix MWC Garfield St and Kings Avenue Meter MWC Data Export Phoenix has two connections to the MWC system, one direct connection at Garfield and Kings and the connection via TAP. This is the direct connection. Phoenix TAP TAP Master Meter on Samike Drive less Talent Meter RVCOG Monthly Utility Billing Data Phoenix TAP usage is the equal to the total from the TAP master meter at Samike, less what is measured at the Talent Meter on the TAP line. Talent Talent Meter at intersection Bear Creek Drive and Main Street in Phoenix less Ashland usage RVCOG Monthly Utility Billing Data Talent usage is the total of the Talent meter, less Imeasured Ashland usage. Ashland Creel Road and Highway 97 RVCOG Monthly Utility Billing Data Attachment 4 Participating Partner Cities' Authorized Water Volumes Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Partner Cities' Authorized Water Volumes Water Right Authorized Water Volume From Water Right (acre-feet) Calculated from Rate (acre-feet) Total Authorized Water Volume (acre-feet) Ashland Permit S-54337 1,000 Total 1,000 1,000 Central Point Transfer T-9900 666.0 Certificate 93754 412.4 Certificate 93755 412.4 Transfer T-10465 438.0 Total 1,104.0 824.8 1,928.8 Eagle Point Certificate 88552 321.3 Transfer T-10527 181.5 Transfer T-10614 273.7 Transfer T-10960 520.3 Certificate 89864 356.94 Transfer T-12221 207.2 Total 1,860.94 1,860.94 Jacksonville Certificate 87360 400.0 Permit S-54974 200.0 Total 600 600 Phoenix Permit S-47673 400 Permit S-52650 600 Total 1,000 1,000 Talent Permit S-53898 759.0 Certificate 91134 533.0 Total 1,292 1,292 Partner Cities' Authorized Water Volumes 6,856.94 824.8 7,681.74 Attachment 5 Example Allocation of Excess Water Use ................................................................................................................................................................................................................................................................ Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Example Allocation of Excess Water Use: Four cities hold water rights and use water as follows. Medford Water would calculate excess water use and unused water rights as shown in the column labeled "difference" city Water Rights A Water Use A Difference A City A 500 1,490 -990 (excess water use) City B 1,000 750 250 unused water rights) city C 1,500 1,000 500 (unused water rights) City D 2,000 1,000 1,000 (unused water rights) Medford Water would calculate the compensation that City A (the only City with excess water use) would need to provide to Cities B, C and D (who had unused water rights) as follows: o Total excess use - 990 AF o Cities B, C, D -each compensated for 250 AF (up to maximum of City B's water rights), which accounts for 750 AF o Remaining excess use - 240 AF o Cities C and D - each compensated for 120 AF (for a total of 370 AF each) Attachment 6 Example Calculation of Average Annual Cost per Acre-Foot ........................................................................................................................................... ............................................................................................... . Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Table 1: Example Calculation of Total Annual O&M Costs for Storage Space (See VI1.B.1. in IGA) Name Application Permit Contracted Storage Space (AF) Total O&M Cost (2020) Ashland S-85733 S-54377 1000 $9,653.00 Jacksonville S-80641 S-53445 400 $14,479.50 Jacksonville S-88088 S-54974 200 $9,653.00 Phoenix S-60890 S-47672 400 $24,132.50 Phoenix S-71996 S-52650 600 $31,179.19 Talent S-84029 S-53898 759 $4,826.50 Totals 3,892 $93,923.69 Table 2: Example Calculation of Total RR&R Costs for Storage Space (See VII.B.2. in IGA) Name Application Permit Contracted Storage Space (AF) Total RR&R Cost (2020) Ashland S-85733 S-54377 1000 $0 Jacksonville S-80641 S-53445 400 $0 Jacksonville S-88088 S-54974 200 $0 Phoenix S-60890 S-47672 400 $0 Phoenix S-71996 S-52650 600 $0 Talent S-84029 S-53898 759 $0 Totals 3,892 $0 Table 3: Example Calculation of 5-year Rolling Average RR&R Cost (See VII.B.3. in IGA) Year RR&R Cost 2016 $0.00 2017 $0.00 2018 $0.00 2019 $0.00 2020 $0.00 Total $0.00 5-year Rolling Average (Divide Total by 5) $0.00 Table 4: Example Calculation of Total Annual Assessment Costs (See V11.13.4. in IGA) Holder Type of Right Certificate Transfer Maximum Rate ( Maximum Volume (AF) Period of Use Volume Associated with Irrigation Districts (AF) Annual Assessment Costs (2020) Central Point Non -District T-9900 1.846 666 1-Apr 1-Nov N/A - Non- District Water Right N/A - Non - District Water Right Central Point Non -District Central Point Non -District Central Point Non -District Central Point District 93754 1.13 1-Apr 1-Oct 412.4 Central Point District 93755 1.13 1-Apr 1-Oct 412.4 Central Point District T-10465 1.2 447.6 1-Apr 1-Oct 438.0 $30,677.22 Central Point District Central Point District Central Point District Central Point District Eagle Point District 88552 0.9 321.3 1-Apr 31-Oct 321.3 Eagle Point District T-10527 0.5 181.5 1-Apr 31-Oct 181.5 Eagle Point District T-10614 1.15 273.7 1-Apr 31-Oct 273.7 Eagle Point District T-10960 1.77 520.3 1-Apr 1-Oct 520.3 $40,800.00 Eagle Point District 1-Apr 31-Oct Eagle Point District 1 89864 1.25 356.94 1-Apr 31-Oct 356.94 Eagle Point District T-12221 0.7 207.2 1-Apr 1-Oct 207.2 Eagle Point District 1-Apr 31-Oct Totals 3,123.7 $71,477.22 Table 5: Example Calculation of Average Annual Cost Per Acre Foot (See VII.B.5. and VII.C. in IGA) Annual Water Volumes Costs (2020) Associated with the Costs (AF) Total Annual O&M Cost For $93 ,923.69 Storage Space 3,892 5-Year Rolling Average RR&R Cost $0.00 for Storage Space Total Annual Assessment Cost from $71,477.22 3,123.7 Irrigation Districts Totals 1 $165,400.91 7,015.70 Annual Average Cost Per Acre Foot: (Divide Total Annual Cost by the Total Water $23.58 Volume Associated with the Costs) Attachment 7 Example Annual Summary Report of Water Sharing Agreement ................................................................................... Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Table 1: Example - Volume of Water Use, Water Purchased, and Water Sold Volume of Authorized Water Authorized Annual Excess Use/ Volume Water Metered Excess Water Remaining After Volume Volume Water Right Water Volume Volume Sold Purchase/Sale Partner City (AF/season) (AF) Volume (AF) Purchased (AF) (AF) (AF) Central Point 1928.8 2023.1 -94.4 94.4 0.0 0.0 Eagle Point 1860.9 1050.5 810.5 0.0 18.9 791.6 Ashland 1000.0 0.0 1000.0 0.0 18.9 981.1 Jacksonville 600.0 529.4 70.6 0.0 18.9 51.7 Phoenix 1000.0 540.5 459.5 0.0 18.9 440.7 Talent 1292.0 559.3 732.7 0.0 18.9 713.9 Table 2: Example - Total Cost Paid and Received by each Partner City Average Annual Cost ($/AF) Water Volume Purchased (AF) Total Paid ($) Water Volume Sold (AF) Total Received ($) Central Point $23.58 94.4 $2,225.13 0.0 $0.00 Eagle Point $23.58 0.0 $0.00 18.9 $445.03 Ashland $23.58 0.0 $0.00 18.9 $445.03 Jacksonville $23.58 0.0 $0.00 18.9 $445.03 Phoenix $23.58 0.0 $0.00 18.9 $445.03 Talent $23.58 0.0 $0.00 18.9 $445.03 Total 94.4 $2,225.13 94.4 $2,225.13 Table 3: Example - Matrix of Costs Paid by and to Each Partner City tA a Receives Central Point Eagle Point Ashland Jacksonville Phoenix Central Point $445.03 $445.03 $445.03 $445.03 Eagle Point $0.00 $0.00 $0.00 $0.00 Ashland $0.00 $0.00 $0.00 $0.00 Jacksonville $0.00 $0.00 $0.00 $0.00 Phoenix $0.00 $0.00 $0.00 $0.00 Talent $0.00 $0.00 $0.00 $0.00 $0.00 Total Received $0.00 $445.03 $445.03 $445.03 $445.03 Talent Total Paid $445.03 $2,225.13 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $445.03 Coordinated Water Rights Management and Water Sharing Plan A strategic approach to water management September 30, 2021 Water is a precious but limited resource in Southern Oregon. Because of this, the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent —collectively referred to as the Partner Cities —and the Medford Water Commission have come together to protect and ensure access to this vital resource. Why is this partnership needed? The Partner Cities hold numerous water rights that authorize the diversion of water at the Medford Water Commission's Duff Water Treatment Plant (WTP). Because of the complications associated with managing multiple water rights at a single point of diversion, the Partner Cities and Medford Water must work together to manage these water rights to ensure they are protected. This alliance also allows for the sharing of water supplies. Water sharing eliminates the need for some Partner Cities to obtain new water rights, which would only further complicate water rights management. Ultimately, the partnership's efforts will help diversify the region's water supply portfolio, increase the long-term reliability of the water supplies, and provide additional tools for managing through water shortages and drought. What is the background of the partnership? The Partner Cities and Medford Water entered into a cooperative agreement for developing a water rights strategy in 2o1g, and in February 2020, identified a recommended approach. The recommended approach includes two elements (1) water rights certification coordination, and (2) a water -sharing plan. How does water sharing work? Under the water -sharing plan framework, the Partner Cities would retain ownership and control of their water rights, and continue to use water under their own water rights from May 1 through September 3o each year. At the end of each year, Medford Water would compare each city's water use to the volume of water authorized by its water rights. Any Partner Cities that used more water than authorized by their water rights would provide compensation to the other Partner Cities for use of water under their rights. What are the next steps? Staff from Medford Water and the Partner Cities have been meeting to develop an Intergovernmental Agreement (IGA) for establishing the Coordinated Water Rights Management and Water Sharing Plan. Staff will continue to keep their Boards and Councils updated and in the near future will bring the IGA to decision makers for their review. W WATOE R qW O•R•E•G•O•N IL, Ak C I T T o f CENTRAL ASHLAND POINT OREGON � Q 9 C Council Business Meeting July 19, 2022 Agenda Item Potential Referral of Amendments to AMC Chapter 4.34, Food and Beverage Tax, to the November 8, 2022 General Election From Joseph Lessard City Manager Doug McGeary Acting City Attorney Contact joe.lessardAashland.or.us doug.incgeanLkashland.or.us SUMMARY At the City Council's July 5, 2022 Business Meeting, staff was directed to return the two following alternate Food and Beverage Tax referendum items for possible addition to the November 8, 2022 General Election ballot: 1. Amendments to AMC Chapter 4.34, Food & Beverage Tax, to authorize use of the tax for parks (98%) and tax administration (2%) and extending its expiration date to December 31, 2040. 2. Amendments to AMC Chapter 4.34, Food & Beverage Tax, to authorize use of the tax for general government purposes including, but not limited to, public safety, wildfire prevention, and emergency event housing (up to 73%) and not less than 25% of revenues for parks),city parks, open space and trails, recreation, senior services, and emergency event housing purposes. Up to 2% of the tax would continue to be used for administration and collection of the tax. Item 1 above was originally put forward as a potential community initiative, but the City Recorder has been notified by representatives of the initiative's sponsors, the Friends of Ashland Parks & Open Space Steering Committee, that they wish to suspend its consideration for the November 8, 2022 General Election. They also respectfully request that the City Council remove the item from consideration as a referendum item for the November 8, 2022 General Election. Item number 2 above was put forward as the City Manager's recommended proposal for the future use of the Food and Beverage Tax. To approve either of the two items listed above for consideration by the voters of Ashland, the City Council will need to take the following steps: • Conduct first reading of the proposed ordinance at either the July 19 or August 2, 2022 City Council Business Meeting • Conduct second reading of the proposed ordinance, subject to the date of first reading, at either the August 2 or August 16, 2022 City Council Business Meeting • With second reading of the ordinance, adopt a formal resolution submitting the corresponding ordinance and ballot title to the City of Ashland's Elections Officer (the City Recorder) for submittal to the Jackson County Elections Officer no later than August 19, 2022, for inclusion on the November 8, 2022, General Election ballot. Page 1 of 2 C I T Y O F -ASHLAND FISCAL IMPACTS Neither of the proposed amendments to AMC Chapter 4.34 will not alter the tax rate or level of revenues collected from of the Food and Beverage Tax. STAFF RECOMMENDATION City staff recommends referring Item 2 above as a ballot measure for public vote at the November 8, 2022 General Election. ACTIONS, OPTIONS & POTENTIAL MOTIONS A. At first reading of the ordinance: o I move to approve First Reading of (either public initiative Item 1 above or Ordinance No. 3212) relating to the Food and Beverage Tax; Amending AMC 4.34.020 and AMC 4.34.160 and advance it to Second Reading for referral to a vote of the qualified voters of the City of Ashland at the November 8, 2022 General Election. B. At second reading of the ordinance: o I move to approve Second Reading of Ordinance No. (to be filled in) relating to the Food and Beverage Tax; Amending AMC 4.34.020 and AMC 4.34.160 and refer it to a vote of the qualified voters of the City of Ashland at the November 8, 2022 General Election. o I move to adopt Resolution No. 2022-22 referring Ordinance No. (to be filled in) to the City's Elections Officer for a vote of the qualified voters of the City of Ashland at the November 8, 2022 General Election. REFERENCES & ATTACHMENTS Attachment 1. Proposed initiative ordinance amending AMC Chapter 4.34, Food and Beverage Tax (this amendment is based on the proposed initiative identifies as Item 1 above in this Council Communication) Attachment 2. Proposed Ordinance No. 3212 Relating to the Food and Beverage Tax; Amending AMC 4.34.020 and 4.34.160 (the City Manager's recommended proposal for general government use; Item 2 above) Attachment 3. Draft referring Resolution No. 2022-22 (to be finalized depending on which ordinance is referred to the Nov. 8th General Election) Page 2 of 2 CITY OF -AS H LA N D SECTIONS: 4.34.010 Definitions 4.34.020 Tax Imposed 4.34.030 Exemptions 4.34.040 Operator's Duties 4.34.050 Reporting and Remitting 4.34.060 Penalties and Interest 4.34.070 Failure to Collect and Report Tax — Determination of Tax by Director 4.34.080 Appeal 4.34.090 Records 4.34.100 Refunds 4.34.110 Actions to Collect 4.34.120 Violations 4.34.130 Confidentiality 4.34.140 Examining Books, Records, or Persons 4.34.160 TERMINATION OF TAX Referred to voters by Resolution No. 2009-22 for 11/02/2009 election - Approved by the voters YES 4130; NO 2894 - Effective December 1, 2009 Referred to voters by Resolution No. 93-02 for 3/23/93 election - Approved by the voters YES 3658; NO 2980 - Effective July 1, 1993 4.34.010 DEFINITIONS The following words and phrases whenever used in this chapter shall be construed as defined in this section unless from the context a different meaning is intended: A. "Caterer" means a person who prepares food at a business site, for compensation, for consumption on or off the business premises but within the corporate limits of the City. B. "Combination facility" has the same meaning as defined in OAR 333-150-0000(4)(i) which the State of Oregon Department of Agriculture licenses or inspects under OAR 333-158-0000. C. "Director" means the Director of Finance of the City of Ashland, or his/her designee. D. "Food" includes all prepared food items and beverages, excluding alcoholic beverages, served in a restaurant including "takeout," "to go" or delivered orders. E. "Open Space Park Program" and "Open Space lands or easements" have the same meaning as used in Article XIX A of the Ashland City Charter. F. "Operator" means the person who is proprietor of the restaurant, whether in the capacity of owner, lessee, sub -lessee, mortgagee in possession, licensee or any other capacity. Where the operator is a corporation, the term "operator" shall also include each and every member of the Board of Directors of such corporation for the time involved. G. "Restaurant" means any establishment required to be licensed as a restaurant, mobile unit or pushcart by the State of Oregon Health Division and includes any establishment where food or beverage is prepared for consumption by the public or any establishment where the public obtains food or beverage so prepared in form or quantity consumable then and there, whether or not it is consumed within the confines of the premises where prepared, and also includes establishments which prepare food or beverage in consumable form for service outside the premises where prepared. The term "restaurant" includes, but is not limited to, grocery store delis, coffee shops, and caterers; it also includes establishments where such food or beverage is prepared in a combination facility. The term "restaurant" does not include a restaurant licensed by the State of Oregon Health Division as a limited service restaurant. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009) 4.34.020 TAX IMPOSED A. Except for exempt or tax -capped activities specified in AMC 4.34.030, the City imposes and levies, in addition to all other taxes, fees and charges of every kind, a tax upon: 1. All food and beverages sold by restaurants located within the City to the public, except for whole cakes, pies, and loaves of bread if purchased for consumption off premises, and for alcoholic beverages; 2. All food and beverages sold by a caterer for an event located within the City, except alcoholic beverages and exempt events as defined in AMC 4.34.030.K; 3. The following items sold by combination facilities: a. Salads from salad bars; b. Dispensed soft drinks and coffee; c. Sandwiches or hot prepared foods ready for immediate consumption; d. The following items, including toppings or additions, scooped or otherwise placed into a cone, bowl or other container for immediate consumption whether or not they are consumed within the confines of the premises where scooped or placed: any frozen dessert regulated by the Oregon State Department of Agriculture under ORS 621.311 and any ice cream, ice milk, sherbet or frozen yogurt. No tax shall be imposed under this subsection, however, on any item whose volume exceeds one-half (1/2) gallon or more. e. Any other food mixed, cooked or processed on the premises in form or quantity for immediate consumption whether or not it is consumed within the confines of the premises where prepared; and 4. The following items sold by combination facilities that are bakeries: a. All those items listed in subsections A.3.a-d of this section; b. All bakery products sold for consumption on the premises; and c. All "takeout" or "to go" orders of bakery products prepared on the premises except for whole cakes, pies, and loaves of bread and any order consisting of six or more bakery products. 5. Use of a delivery service for any activity under this section, whether an independent delivery service or operator provided delivery service, does not excuse the operator from the requirement to collect and remit the tax on the food and beverages sold. B. Such tax shall be imposed at a rate of five percent (5%) on the total amount charged by the seller for the food and beverages, or for the meal. In the computation of this tax any fraction of one-half (1/2) cent or more shall be treated as one cent. C. The taxes collected by the City under this chapter shall be used as follows: 1. Twenty-five percent (25%) shall be paid into the Ashland Parks and Recreation Commission Capital Improvement Program (CIP) Fund for purposes of funding Parks related a „arks aGG9URt fE)F PYFPeS^acquisition, planning, development, repair, major maintenance, maior rehabilitation of Parks and Open Space lands, facilities and amenities of such „f City „. Fks consistent with adopted plans of the Ashland Parks and Recreation Commission. 2. Seventy-three percent (73%) shall be paid into the Ashland Parks and Recreation Commission General Fund for the purposes of funding Parks related day-to-day operations related expenses attributable to the performance, and in conjunction with the adopted operating budget, of the Ashland Parks and Open Space programs. 3.-2-. The City may retain up to two percent (2%) of the tax collected for costs of administration and collection. 4.-3-. Repealed —the final payment to the wastewater treatment plan debt was made in 2022 Th e fall„W iRg _m„ „tom f.,r fisrza1 y a Fs 2017 thre gh 2022 st h^ Se t „ay fe Plan- a. IR f�'ssal year 2017: c1 868 eon nn h In for -cal Year 20 8: c1 608 600 nn c In f seal YeaF 2019: $ cnn cnn nn H In f;seal YeaF 2020: c1 6nn nnn nn e. In fiscal year 2021: $1,650,000.00. f. In fiscal year 2022: $1,650,000.00. 4. ARY taWP-S eelleeted by the City under this ehapter @Rd not used as deseFibed4a subsections C.1 3 E)f this sP-r--VA-.R r—hall be paid 0 RtO the Street FURd and 1-1-SPAI f1A-F street r teRaRce and r nrtr, ,-tiAn , appmpFiate taxes URder this chapteF as fellows: Plat lei,- than twenty five r r,t (25%) fer the a ri+i.,., .,I-..,.,'. , rt, .d.,.,. lepment, repaird n rehabilitation of Gity parks h IAIA-t I.,r-r than a aFneURt necessary to pay fee debt service hr. fer st Feet repair and r habilitatiOR per the City of Ashland PayemeRt MaRage meRt PFogram c. Up to twe percent (2%) fer the collection -,.,.•I a dmi.,istration efth„ tax rl Except a pFevided i subsection D of this serA'., RtS purposes are appFeved by a /".,URGil adept.+.- ..r.dir.ance „ acted by a ,r.to Af+he Arhlap d .,leet„rato D. The Council may decrease the rate of the tax or eliminate the tax described in subsections A and B of this section after a public hearing. Notice of the hearing shall be given by publication in a newspaper of general circulation in the City at least ten days prior to the date of the public hearing. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009) 4.34.030 EXEMPTIONS The tax levied by AMC 4.34.020 shall be capped, at the amount specified, or shall not be collected or assessed on food or beverages: A. Sold by public or private schools or colleges except that food sold by independent contractor operators at such schools or colleges shall be subject to the tax imposed by this chapter; B. Sold on hospital grounds; C. Provided by bed and breakfast establishments to their guests; D. Sold in vending machines; E. [we may want to consider deleting this section since food trucks and other temporary restaurants are more prevalent now than when this was writtenlSold in temporary restaurants including food stands, booths, street concessions and similar type operations, operated by nonprofit organizations or service clubs; F. Served in connection with overnight or residential facilities — including, but not limited to, convalescent homes, nursing homes, retirement homes and motels — if the food and beverage are provided as part of the cost of sleeping accommodations; G. Provided by nonprofit tax-exempt organizations to citizens over 60 years of age as a part of a recognized senior citizen nutritional program; H. Sold for resale to the public; I. Sold in bulk to the public for nonimmediate consumption off the premises including but not limited to Ice cream packed in a container of one-half (1/2) gallon or more; J. Which are candy, popcorn, nuts, chips, gum or other confections but not including ice cream, frozen yogurt, cakes, pies or other desserts; K. Sold by an operator at a single food service event located within the City in which restaurant or catering services (exclusive of alcohol) exceed $5,000.00, in which case, the applicable food and beverage tax shall not be excused but shall be capped at $250.00. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009) 4.34.040 OPERATOR'S DUTIES Each operator shall collect the tax imposed by this chapter, to the same extent and at the same time as the amount for the food or beverage is collected from every purchaser. The amount of tax need not be separately stated from the amount of the food or beverage. Every operator required to collect the tax imposed in this chapter shall be entitled to retain five percent of all taxes collected to defray the costs of collections and remittance. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009) 4.34.050 REPORTING AND REMITTING A. Reporting. Every operator shall, on or before the last day of the month following the end of each calendar quarter (in the months of April, July, October and January), make a return to the Director, on forms provided by the City, specifying the total sales subject to this chapter and the amount of tax collected under this chapter. The operator may request or the Director may establish shorter reporting periods for any operator if the operator or director deems it necessary in order to insure collection of the tax and the Director may require further information in the return relevant to payment of the liability. A return shall not be considered filed until it is actually received by the Director. B. Remitting. At the time the return is filed, the full amount of the tax collected shall be remitted to the Director. Payments received by the Director for application against existing liabilities will be credited toward the period designated by the taxpayer under conditions which are not prejudicial to the interest of the City. A condition which is considered prejudicial is the imminent expiration of the statute of limitations for a period or periods. C. Order of Payments. Nondesignated payments shall be applied in the order of the oldest liability first, with the payment credited first toward any accrued penalty, then to interest, then to the underlying tax until the payment is exhausted. Crediting of a payment toward a specific reporting period will be first applied against any accrued penalty, then to interest, then to the underlying tax. The Director, when in the Director's discretion determines that it will be in the best interest of the City, may specify that a different order of payment credit should be followed with regard to a particular tax or factual situation. The Director may establish shorter reporting periods for any operator if the Director deems it necessary in order to insure collection of the tax and the Director may require further information in the return relevant to payment of the liability. When a shorter return period is required, penalties and interest shall be computed according to the shorter return period. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the City until payment is made to the Director. A separate trust bank account is not required in order to comply with this provision. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009; Ord. 2903, amended, 01/06/2004; Ord. 2885, amended, 08/06/2002) 4.34.060 PENALTIES AND INTEREST A. Any operator, who fails to remit any portion of any tax imposed by this chapter within the time required, shall pay a penalty of ten percent of the amount of the tax, in addition to the amount of the tax. B. Any operator who fails to remit any delinquent remittance on or before a period of 60 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the penalty first imposed. C. If the Director determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsections A and B of this section. D. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. E. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax required to be paid. F. Notwithstanding AMC 4.34.020.C, all sums collected pursuant to the penalty provisions in subsections A, B and C of this section shall be distributed to the City of Ashland Central Service Fund to offset the costs of auditing and enforcement of this tax. G. Waiver of Penalties. Penalties and interest for certain late tax payments may be waived pursuant to AMC 2.28.045.D. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009; Ord. 2983, amended, 05/05/2009) 4.34.070 FAILURE TO COLLECT AND REPORT TAX — DETERMINATION OF TAX BY DIRECTOR If any operator should fail to make, within the time provided in this chapter, any report of the tax required by this chapter, the Director shall proceed in such manner as deemed best to obtain facts and information on which to base the estimate of tax due. As soon as the Director shall procure such facts and information as is able to be obtained, upon which to base the assessment of any tax imposed by this chapter and payable by any operator, the Director shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the Director shall give a notice of the amount so assessed by having it served personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at the last known place of address. Such operator may make an appeal of such determination as provided in AMC 4.34.080. If no appeal is filed, the Director's determination is final and the amount thereby is immediately due and payable. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009; Ord. 2885, amended, 08/06/2002) 4.34.080 APPEAL Any operator aggrieved by any decision of the Director with respect to the amount of such tax, interest and penalties, if any, may appeal pursuant to the administrative appeals process in AMC 2.30.020, except that the appeal shall be filed within 30 days of the serving or mailing of the determination of tax due. The hearings officer shall hear and consider any records and evidence presented bearing upon the Director's determination of amount due, and make findings affirming, reversing or modifying the determination. The findings of the hearings officer shall be final and conclusive, and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009; Ord. 2885, amended, 08/06/2002) 4.34.090 RECORDS It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve, for a period of three years, all such records as may be necessary to determine the amount of such tax. The Director shall have the right to inspect all records at all reasonable times. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009) 4.34.100 REFUNDS A. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the City under this chapter, it may be refunded as provided in subsection B of this section, provided a claim in writing, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director within one year of the date of payment. The claim shall be on forms furnished by the Director. B. The Director shall have 20 calendar days from the date of receipt of a claim to review the claim and make a determination in writing as to the validity of the claim. The Director shall notify the claimant in writing of the Director's determination. Such notice shall be mailed to the address provided by claimant on the claim form. In the event a claim is determined by the Director to be a valid claim, an operator may claim a refund, or take as credit against taxes collected and remitted, the amount overpaid, paid more than once or erroneously or illegally collected or received in a manner prescribed by the Director. The operator shall notify Director of claimant's choice no later than 15 days following the date director mailed the determination. In the event claimant has not notified the Director of claimant's choice within the 15-day period and the operator is still in business, a credit will be granted against the tax liability for the next reporting period. If the operator is no longer in business, a refund check will be mailed to claimant at the address provided in the claim form. C. No refund shall be paid under the provisions of this section unless the claimant established the right by written records showing entitlement to such refund and the Director acknowledged the validity of the claim. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009; Ord. 2903, amended, 01/06/2004) 4.34.110 ACTIONS TO COLLECT Any tax required to be paid by any operator under the provisions of this chapter shall be deemed a debt owed by the operator to the City. Any such tax collected by an operator which has not been paid to the City shall be deemed a debt owed by the operator to the City. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City of Ashland for the recovery of such amount. In lieu of filing an action for the recovery, the City of Ashland, when taxes due are more than 30 days delinquent, can submit any outstanding tax to a collection agency. So long as the City of Ashland has complied with the provisions set forth in ORS 697.105, in the event the City turns over a delinquent tax account to a collection agency, it may add to the amount owing an amount equal to the collection agency fees, not to exceed the greater of $50.00 or 50 percent of the outstanding tax, penalties and interest owing. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009; Ord. 2931, amended, 09/19/2006; Ord. 2885, amended, 08/06/2002) 4.34.120 VIOLATIONS All violations of this chapter are punishable as set forth in AMC 1.08.020. It is a violation of this chapter for any operator or other person to: A. Fail or refuse to comply as required herein; B. Fail or refuse to furnish any return required to be made; C. Fail or refuse to permit inspection of records; D. Fail or refuse to furnish a supplemental return or other data required by the Director; E. Render a false or fraudulent return or claim; F. Fail, refuse or neglect to remit the tax to the City by the due date. Violation of subsections A-D and F above shall be considered a Class I violation. Filing a false or fraudulent return shall be considered a Class C misdemeanor, subject to AMC 1.08. The remedies provided by this section are not exclusive and shall not prevent the City from exercising any other remedy available under the law, nor shall the provisions of this chapter prohibit or restrict the City or other appropriate prosecutor from pursuing criminal charges under state law or City ordinance. (Ord. 3133, amended, 08/16/2016; Ord. 3023, amended, 08/03/2010; Ord. 2991, amended, 12/01/2009; Ord. 2885, amended, 08/06/2002) 4.34.130 CONFIDENTIALITY Except as otherwise required by law, it shall be unlawful for the City, any officer, employee or agent to divulge, release or make known in any manner any financial information submitted or disclosed to the City under the terms of this chapter. Nothing in this section shall prohibit: A. The disclosure of the names and addresses of any person who is operating a restaurant; or B. The disclosure of general statistics in a form which would prevent the identification of financial information regarding an individual operator; or C. Presentation of evidence to the court, or other tribunal having jurisdiction in the prosecution of any criminal or civil claim or an appeal for amount due the City under this chapter; or D. The disclosure of information when such disclosure of conditionally exempt information is ordered under public records law procedures; or E. The disclosure of records related to a business's failure to report and remit the tax when the report or tax is in arrears for over six months or the tax exceeds $5,000.00. The City Council expressly finds and determines that the public interest in disclosure of such records clearly outweighs the interest in confidentiality under ORS 192.501(5). (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009; Ord. 2885, amended, 08/06/2002) 4.34.140 EXAMINING BOOKS, RECORDS, OR PERSONS The City, for the purpose of determining the correctness of any tax return, or for the purpose of an estimate of taxes due, may examine or may cause to be examined by an agent or representative designated by it for that purpose any books, papers, records, or memoranda, including copies of operator's state and federal income tax return, bearing upon the matter of the operator's tax return (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009; Ord. 2885, amended, O8/06/2002) 4.34.160 TERMINATION OF TAX This chapter shall expire on December 31, 2038 2040, unless extended by a vote of the electorate. (Ord. 3133, amended, 08/16/2016; Ord. 2991, amended, 12/01/2009) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ORDINANCE NO.3212 AN ORDINANCE RELATING TO THE FOOD AND BEVERAGE TAX; AMENDING AMC 4.34.020 AND AMC 4.34.160 Annotated to show deletions and additions to the Ashland Municipal Code sections being modified. Deletions are bold lined through, and additions are bold underlined. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Ashland Municipal Code 4.34.020 is hereby amended as follows: 4.34.020 Tax Imposed A. Except for exempt or tax -capped activities specified in AMC 4.34.030, the City imposes and levies, in addition to all other taxes, fees., and charges of every kind, a tax upon: 1. All food and beverages sold by restaurants located within the City to the public, except for whole cakes, pies, and loaves of bread if purchased for consumption off premises, and for alcoholic beverages; 2. All food and beverages sold by a caterer for an event located within the City, except alcoholic beverages and exempt events as defined in AMC 4.34.030.K; 3. The following items sold by combination facilities: a. Salads from salad bars; b. Dispensed soft drinks and coffee; c. Sandwiches or hot prepared foods ready for immediate consumption, d. The following items, including toppings or additions, scooped or otherwise placed into a cone, bowl or other container for immediate consumption whether or not they are consumed within the confines of the premises where scooped or placed: any frozen dessert regulated by the Oregon State Department of Agriculture under ORS 621.311 and any ice cream, ice milk, sherbet or frozen yogurt. No tax shall be imposed under this subsection, however, on any item whose volume exceeds one-half (1/2) gallon or more. e. Any other food mixed, cooked or processed on the premises in form or quantity for immediate consumption whether or not it is consumed within the confines of the premises where prepared; and ORDINANCE NO.3212 Page 1 of 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 4. The following items sold by combination facilities that are bakeries: a. All those items listed in subsections A.3.a-d of this section; b. All bakery products sold for consumption on the premises; and c. All "takeout" or "to go" orders of bakery products prepared on the premises except for whole cakes, pies, and loaves of bread and any order consisting of six or more bakery products. 5. Use of a delivery service for any activity under this section, whether an independent delivery service or operator provided delivery service, does not excuse the operator from the requirement to collect and remit the tax on the food and beverages sold. B. Such tax shall be imposed at a rate of five percent (5%) on the total amount charged by the seller for the food and beverages, or for the meal. In the computation of this tax any fraction of one-half (1 /2) cent or more shall be treated as one cent. C. The taxes collected by the City under this chapter shall be used as follows: 1. Not less than twenty-five Twenty five percent (25%) shall be paid into a parks aeeou used for purposes of acquisition, planning, development, operation, maintenance, repair and rehabilitation of City parks, open spaces, and trails and for recreation or senior programs per adopted plans of the Ashland v. Fks and Re ffeati n Commis ., 2. Up to seventy-three percent (73%) may be used for general government purposes including, but not limited to, public safety, wildfire prevention, and emergency event housing. 3.-2-. The City may retain up to two percent (2%) of the tax collected for costs of administration and collection. in fiseal 2017! . a. year- b. in fiseal 2018! . year- e. in fiseal yewr 600.00. e. f €iseal yea-- 2021! $1,6 , 0-. ORDINANCE NO. 3212 Page 2 of 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Win- iseal year- 202222 $1,6 ,a 0-. a � r� etirre+.�ntire� Program. Up to two 0 16) for- the Program. Up to two 0 16) for- the and administration of the tax. e. per-eent eolleetion be for this appropriated purposes eonsistent with ehapter- unless other- purposes are clue: D. The Council may decrease the rate of the tax or eliminate the tax described in subsections A and B of this section after a public hearing. Notice of the hearing shall be given by publication in a newspaper of general circulation in the City at least ten (10) days prior to the date of the public hearing. Such notice may be published in the online or electronic version of such newspaper. SECTION 2. Ashland Municipal Code 4.34.160 is hereby amended as follows: 4.34.160 Termination of Tax This chapter shall expire on December 31, 2040 2030, unless extended by a vote of the electorate. SECTION 3. Codification. In preparing this ordinance for publication and distribution, the City Recorder shall not alter the sense, meaning, effect, or substance of the ordinance, but within such limitations, may: ORDINANCE NO.3212 Page 3 of 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (a) Renumber sections and parts of sections of the ordinance; (b) Rearrange sections; (c) Change reference numbers to agree with renumbered chapters, sections or other parts; (d) Delete references to repealed sections; (e) Substitute the proper subsection, section, or chapter numbers; (f) Change capitalization and spelling for the purpose of uniformity; (g) Add headings for purposes of grouping like sections together for ease of reference; and (h) Correct manifest clerical, grammatical, or typographical errors. SECTION 4. Severability. Each section of this ordinance, and any part thereof, is severable, and if any part of this ordinance is held invalid by a court of competent jurisdiction, the remainder of this ordinance shall remain in full force and effect. SECTION 5. Referral. This ordinance is referred to the electors of the City of Ashland for approval at the next statewide general election on November 8, 2022. SECTION 6. Effective Date. This ordinance takes effect and becomes operative thirty (30) days after the day on which it is approved by a majority of the voters. PASSED by the City Council this day of , 2022. ATTEST: Melissa Huhtala, City Recorder SIGNED and APPROVED this day of ORDINANCE NO.3212 Julie Akins, Mayor 2022. Page 4 of 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Reviewed as to form: Katrina L. Brown, City Attorney ORDINANCE NO.3212 Page 5 of 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 RESOLUTION NO.2022-22 A RESOLUTION OF THE CITY OF ASHLAND SUBMITTING TO THE VOTERS AT THE NOVEMBER 8, 2022 GENERAL ELECTION PROPOSED AMENDMENTS TO CHAPTER 4.34 OF THE ASHLAND MUNICIPAL CODE RELATED TO THE FOOD AND BEVERAGE TAX NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ASHLAND, OREGON, RESOLVES AS FOLLOWS: SECTION 1. The City Council submits to the qualified voters of the City of Ashland the question of approving or rejecting amendments to Chapter 4.34 of the Ashland Municipal Code related to the City's food and beverage tax and which shall become effective only upon it passage by the electorate. SECTION 2. The City Council hereby refers this question to the ballot of the November 8, 2022 General Election. SECTION 3. The City Recorder shall cause to be delivered to the Elections Officer of Jackson County, Oregon, the ballot title attached hereto as "Exhibit A" and fully incorporated herein by this reference. SECTION 4. The City Attorney is hereby authorized to alter the text of the ballot title to comply with any rules, procedures, or practices of the Elections Officer of Jackson County, Oregon, to implement the requirement of Oregon law. SECTION 5. This resolution is effective upon adoption. ADOPTED by the City Council this day of , 2022. SIGNED and APPROVED this RESOLUTION NO.2022-22 ATTEST: Melissa Huhtala, City Recorder day of 92022. Julie Akins, Mayor Page 1 of 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Reviewed as to form: Katrina L. Brown, City Attorney RESOLUTION NO.2022-22 Page 2 of 2 EXHIBIT A (CITY MANAGER) BALLOT TITLE CAPTION: PROPOSED AMENDMENTS TO ASHLAND' S FOOD AND BEVERAGE TAX ORDINANCE QUESTION: SHALL THE ORDINANCE BE AMENDED TO DEDICATE A PORTION OF REVENUES TO GENERAL GOVERNMENT SERVICES AND EXTEND THE SUNSET DATE? SUMMARY: THE CITY OF ASHLAND'S CURRENT FOOD AND BEVERAGE TAX ORDINANCE REQUIRES THAT NOT LESS THAN TWENTY-FIVE PERCENT OF THE TAX COLLECTED BE APPROPRIATED FOR THE ACQUISITION, PLANNING, DEVELOPMENT, REPAIR AND REHABILITATION OF CITY PARKS. UP TO TWO PERCENT MAY BE APPROPRIATED FOR THE COLLECTION AND ADMINISTRATION OF THE TAX. THE REMAINING AMOUNT MAY BE APPROPRIATED FOR STREET REPAIR AND FOR PARKS. THIS MEASURE WOULD REQUIRE THAT NOT LESS THAN TWENTY-FIVE PERCENT OF THE TAX BE APPROPRIATED FOR PARKS AND WOULD ALLOW UP TO SEVENTY-THREE PERCENT TO BE USED FOR GENERAL GOVERNMENT PUROPOSES INCLUDING PUBLIC SAFETY, WILDFIRE PREVENTION, AND EMERGENCY EVENT HOUSING. THIS MEASURE WOULD ALLOW THE TAX TO BE USED FOR PARKS OPERATIONS AND MAINTENANCE IN ADDITION TO ACQUISITION, PLANNING, DEVELOPMENT, REPAIR AND REHABILITATION. IT WOULD EXTEND THE EXPIRATION DATE OF THE TAX TO DECEMBER 31, 2040. IT WOULD BECOME EFFECTIVE UPON APPROVAL OF ASHLAND VOTERS. THIS MEASURE WOULD NOT CHANGE THE CURRENT TAX RATE OF FIVE PERCENT (5%) AND PROVIDES THAT THE TAX RATE AND USE OF TAX COULD NOT CHANGE WITHOUT VOTER APPROVAL. EXHIBIT A (PARKS) PET-01 CERTIFIED BALLOT TITLE CAPTION: PROPOSED AMENDMENT TO ASHLAND'S FOOD AND BEVERAGE TAX ORDINANCE QUESTION: SHALL THE ORDINANCE BE AMENDED TO DEDICATE MOST REVENUES RECEIVED FOR PARKS AND OPEN SPACE AND EXTEND THE SUNSET DATE? SUMMARY: THE CITY OF ASHLAND'S CURRENT FOOD AND BEVERAGE TAX ORDINANCE REQUIRES THAT NOT LESS THAN TWENTY-FIVE PERCENT (25%) OF THE TAX COLLECTED BE APPROPRIATED FOR THE ACQUISITION, PLANNING, DEVELOPMENT, REPAIR AND REHABILITATION OF CITY PARKS. UP TO TWO PERCENT (2%) MAY BE APPROPRIATED FOR THE COLLECTION AND ADMINISTRATION OF THE TAX. THE REMAINING AMOUNT MAY BE APPROPRIATED FOR STREET REPAIR AND REHABILITATION AND FOR PARKS. THIS MEASURE WOULD REQUIRE THAT NOT LESS THAN NINETY-EIGHT PERCENT OF THE TAX (98%) BE APPROPRIATED FOR CITY PARKS. THIS MEASURE WOULD ALLOW THE TAX TO BE USED FOR PARKS OPERATIONS AND MAINTENANCE IN ADDITION TO ACQUISITION, PLANNING, DEVELOPMENT, REPAIR AND REHABILITATION. IT WOULD EXTEND THE EXPIRATION DATE OF THE TAX FROM DECEMBER 31, 2030, TO DECEMBER 31, 2040. IT WOULD BECOME EFFECTIVE UPON APPROVAL OF ASHLAND VOTERS. THIS MEASURE WOULD NOT CHANGE THE CURRENT TAX RATE OF FIVE PERCENT (5016) AND PROVIDES THAT THE TAX RATE AND USE OF TAX COULD NOT CHANGE WITHOUT VOTER APPROVAL. Council Business Meeting July 19, 2022 I Agenda Item I Second Reading of Ordinance No. 3210 regarding notice of meetings and amending I Ashland Municipal Code 2.04.020.F. Joseph L. Lessard City Manager From Katrina L. Brown City Attorney Melissa Huhtula City Recorder i oseph.lessard(a)ashland.or.us Contact katrina.brownaashland.or.us melissa.huhtula@ashland.or.us SUMMARY This is the time set for Second Reading of proposed Ordinance No. 3210 regarding notice of Council meetings and amending Ashland Municipal Code (AMC) 2.04.020.F. Proposed Ordinance No. 3210 would omit the requirement that notice of meetings be sent to a newspaper "with general local circulation" and instead require that notice be posted at City Hall and at Council Chambers, in addition to the being posted prominently on the City's website. POLICIES. PLANS & GOALS SUPPORTED N/A PREVIOUS COUNCIL ACTION None BACKGROUND AND ADDITIONAL INFORMATION In August of 2021, the City of Ashland's only print newspaper, The Ashland Daily Tidings, ceased publication. The only other print newspaper in general local circulation in the City of Ashland is experiencing staffing shortages and is continually extending the time required to get a public notice published. Proposed Ordinance No. 3210 would omit the requirement that notice of meetings be posted in a traditional newspaper with general local circulation. It would instead require that notice be posted prominently at both City Hall and City Council Chambers in addition to being posted on the City's website. Oregon's Public Meetings Laws (ORS 192.610 to 192.690) do not require that notice of meetings be published in a print newspaper with local circulation. They require that notice be "reasonably calculated to give actual notice to interested persons." (See ORS 192.640). Notice will continue to be posted prominently on the City's website as well as at City Hall and at City Council Chambers. In addition, notice will be posted at the online community news source Ashland.news. Council conducted First Reading of Ordinance No. 3210 at its July 5, 2022 regular business meeting and passed it to Second Reading without any amendments. FISCAL IMPACTS The proposed change to the noticing requirement would save the City of Ashland approximately $700 per year. STAFF RECOMMENDATION Staff recommends that the City Council approve Second Reading of Ordinance No. 3210 for enactment. ACTIONS, OPTIONS & POTENTIAL MOTIONS Page I of 2 C 1 T Y O F -ASH LAN D 1. I move to approve Second Reading of Ordinance No. 3210 for enactment. 2. 1 move to amend Ordinance No. 3210 as follows .... REFERENCES & ATTACHMENTS Proposed Ordinance No. 3210 Page 2 of 2 CITY OF -ASH LAN D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ORDINANCE NO. 3210 AN ORDINANCE REGARDING THE NOTICE OF MEETINGS; AMENDING ASHLAND MUNCIPAL CODE 2.04.020 Annotated to show deletions and additions to the Ashland Municipal Code sections being modified. Deletions are bold fined through, and additions are bold underlined. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Ashland Municipal Code Chapter 2.04.020 is hereby amended as follows: 2.04.020 A. Regular Meetings. The regular sessions of the Council are on the first and third Tuesday of each month unless otherwise arranged, beginning at 6:00 p.m. Meetings are required to end no later than 9:30 p.m., except in the following circumstance: 1. If a motion or any amendment to a motion has been made and has been seconded if a second is required, deliberation on the motion shall be allowed to continue until no later than 9:40 p.m., at which time deliberation shall end; and any amendments to the motion and the motion itself shall be voted upon immediately and without further deliberation or debate and without passage of a motion to end debate. B. Special Meetings. A special meeting may be called either by the Mayor or two members of the Council. Notice of the time and place of such special meeting and the subjects to be acted upon shall be delivered to all members of the Council at least seventy-two (72) hours in advance of the time of the meeting, except in the case of an emergency, and the Council may consider and act only upon such matters as contained in the notice. C. Study Sessions. 1. Study sessions are for Council members to receive background information and recommendations from staff or invitees with expertise on City business; to ask questions, discuss options, express their individual views on matters that may be voted on in subsequent regular or special meetings; and to provide guidance to staff. The Council may vote in study sessions on guidance to staff concerning matters to be presented to Council for decision at subsequent meetings. By consensus, the Council also may direct staff to take action on other ORDINANCE NO. 3210 Page 1 of 4 I 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 matters that do not require Council decision by ordinance or resolution. No particular cases involving quasi-judicial decisions may be discussed at study sessions. 2. Each study session shall include up to a total of fifteen (15) minutes for public forum, in which persons may speak about any topic on the agenda for that study session. Persons wishing to speak during public forum are to submit a "speaker request form" to the City Recorder. 3. Study sessions shall begin at 5:30 p.m. on the day before each regular meeting unless otherwise arranged, but shall not be held on national holidays. The Mayor or two (2) Councilors may call a study session at any time with not less than seventy-two (72) hours' advance notice. D. Executive Sessions. 1. All meetings of the City Council shall be held in open sessions, except meetings that may be closed for those purposes specified in the Oregon Public Meetings Law (ORS 192.610 through 192.690). These purposes include, but are not limited to, the employment and dismissal of public employees, the performance evaluation of the City Manager and City Attorney, labor negotiations, real property transaction negotiations, and consulting with legal counsel on pending or threatened litigation. At any time during an executive session, a Councilor who feels a matter under consideration should be addressed exclusively in open session may state a point of order, which shall be ruled upon in the executive session as set forth in AMC 2.04.040.C.4.b(1). 2. Notice of executive sessions shall be given as required by State law and such notice must state the specific provision of law authorizing the session. The Mayor and City Councilors will act in accordance with State law regarding confidentiality of information discussed in executive sessions. 3. At the commencement of each executive session, the presiding officer must state on the record that executive session information is confidential and may not be reported. The proceedings may be reported if no such statement is made. E. Emergency Meetings. The City Manager is responsible for implementation of the Emergency Management Plan. When the City Manager determines that a state of emergency exists, the City ORDINANCE NO. 3210 Page 2 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Manager will make a declaration to that effect and will request that the Mayor call an emergency meeting of the Council in order to ratify the declaration of emergency. The emergency meeting of the Council will occur as soon as possible after the declaration of emergency. A quorum of the Council may not be possible due to emergency circumstances and is not required for this emergency meeting. Notwithstanding the advance notice requirements in subsections B, D and F of this section, notice of the emergency meeting can be made in the most expedient manner as determined by the City Manager and need not be seventy-two (72) hours in advance, but notice of the emergency special meeting must be given at least twenty-four (24) hours in advance if feasible. In any case, minutes of any emergency meeting must meet the requirements of ORS 192.640(3) and 192.650. F. Notice of Meetings. Advance notice of at least seventy-two (72) hours shall be provided for all meetings, except for emergency meetings. Notice shall be Wee! eirealation and posted prominently on the City's website and at City Hall and City Council Chambers. In the case of an emergency or when a state of emergency has been declared, public notice appropriate to the circumstances shall be provided and reasons justifying the lack of seventy-two (72) hours' notice shall be included in the minutes of such meeting. SECTION 2, Codification. In preparing this ordinance for publication and distribution, the City Recorder shall not alter the sense, meaning, effect, or substance of the ordinance, but within such limitations, may: (a) Renumber sections and parts of sections of the ordinance; (b) Rearrange sections; (c) Change reference numbers to agree with renumbered chapters, sections or other parts; (d) Delete references to repealed sections; (e) Substitute the proper subsection, section, or chapter numbers; (i) Change capitalization and spelling for the purpose of uniformity; (g) Add headings for purposes of grouping like sections together for ease of reference; and (h) Correct manifest clerical, grammatical, or typographical errors. ORDINANCE NO. 3210 Page 3 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SECTION 3. Severability. Each section of this ordinance, and any part thereof, is severable, and if any part of this ordinance is held invalid by a court of competent jurisdiction, the remainder of this ordinance shall remain in full force and effect. ADOPTED this day of 12022. SIGNED and APPROVED this Reviewed as to form: Katrina L. Brown, City Attorney ORDINANCE NO. 3210 ATTEST: Melissa Huhtala, City Recorder day of 12022. Julie Akins, Mayor Page 4 of 4 Council Business Meeting July 19, 2022 Agenda Item Approval of a Sole Source Procurement — Dry Creek Landfill Biosolids Disposal Scott Fleury PE Public Works Director From David Gies Wastewater Treatment Plant Supervisor Contact scott.fleuryCc ashland.or.us 541-552-2412 david.giesCa_ashland.or.us 541-552-2335 SUMMARY Before the Council is a request to approve a Sole Source Procurement exceeding $100,000.00. This Sole Source Procurement will allow the Wastewater Treatment Plant Supervisor to directly award a contract to Dry Creek Landfill for the disposal of biosolids. The term for this Sole Source Procurement will begin on July 1, 2022 and end on June 30, 2023. POLICIES, PLANS & GOALS SUPPORTED City Council Goals: • Maintain Essential Services — Wastewater Department Goals: • Maintain existing infrastructure to meet regulatory requirements and minimize life -cycle costs • Deliver timely life cycle capital improvement projects • Maintain and improve infrastructure that enhances the economic vitality of the community • Evaluate all city infrastructure regarding planning management and financial resources PREVIOUS COUNCIL ACTION The previous Sole Source Procurement was approved by the City Council on June 1, 2021 for the term that began on July 1, 2021 and will end on June 30, 2022 (Staff Report). BACKGROUND AND ADDITIONAL INFORMATION The Wastewater Treatment Plant (WWTP) operates under a Department of Environmental Quality (DEQ) permit and the biosolids that are generated at the plant are required to be disposed of in a manner that meets all Federal and State regulations on a daily basis. The closest local and approved disposal site for biosolids in the Rogue Valley is Dry Creek Landfill. The staff at the WWTP is continually focused on efficiency and consistency in the biosolids drying process to ensure a drier product thereby reducing the weight and effectively reducing the overall cost of disposing biosolids. FISCAL IMPACTS Dry Creek Landfill is raising the City's disposal rates for the upcoming fiscal year. The new disposal rate of $65.50 per ton and/or a minimum charge of $300.00 per load will be in effect for Fiscal Year (FY) 2023. The estimate for FY 2023 is 4,000 tons at a cost of $65.50 per ton for a total cost of $262,000.00 STAFF RECOMMENDATION Staff recommends the public contract be awarded to Dry Creek Landfill. Page 1 of 2 CITY Of -ASHLAND ACTIONS, OPTIONS & POTENTIAL MOTIONS 1. I move to approve the public contract award to Dry Creek Landfill for the disposal of biosolids ATTACHMENTS 1. Sole Source Written Findings 2. Dry Creek Landfill, Inc. Rate Sheet Effective July 1, 2022 Page 2 of 2 C 1 T Y OF -AS H LAN D FORM #6 CITY OF -AS H LA N D SOLE -SOURCE DETERMINATION AND WRITTEN FINDINGS GOODS AND SERVICES Greater than $100,000 To: City Council, Local Contract Review Board From: David Gies, Wastewater Treatment Plant Supervisor Date: June 14, 2022 Re: Sole Source Determination and Written Findings for Goods and Services In accordance with AMC 2.50.090(F), the Department Head shall determine in writing that there is only one provider of a product or service of the quality and type required available. Estimated total value of contract: $262,000.00 Project name: Dry Creek Landfill Description of goods and services: Location for the disposal of biosolids. Background: The City of Ashland operates its wastewater treatment plant under a permit issued by the Oregon department of Environmental Quality. It is required to dispose of the biosolids generated at the WWTP on a daily basis. These solids need to be handled properly and buried in a timely manner. The WWTP generates on average one 15 yard dump truck of solids daily. Dry Creek landfill is the closest approved site that we can dispose of these solids for burial. The Wastewater Division is focused on efficient cost savings and will look to improve the consistency in the biosolids drying process to ensure a drier product thereby reducing the weight and effectively reducing the overall cost of disposing biosolids. Dry Creek Landfill has provided the city with a quote of $65.50 per ton with a $300.00 per load minimum fee. The estimate for FY 2023 is 4,000 tons for a total cost of $ 262,000.00 This Sole Source Procurement is being requested for a term of one year beginning July 1, 2022 and expiring on June 30, 2023. Form #6 - Sole Source —Goods and Services'— Greater than $100,000, Pagel of 3,6114022 Findings: Me findings below must include factual information supporting the determination. Market Research Overall finding: Dry Creek Landfill is the closest approved disposal site. [In accordance with ORS 279B.075 these are the examples offindings that should be addressed Select at least one of the endings and prepare the determination as it specifically relates to the good or service being procured. More than one finding can be addressed The findings are as follows. Pursuant to ORS 279B.075 (2)(a): Provide findings supporting your determination that the efficient utilization of existing goods requires the acquisition of compatible goods or services from only one source. N/A Pursuant to ORS 279B.075 (2)(b): Provide findings supporting your determination that the goods or services required for the exchange of software or data with other public or private agencies are available from only one source. N/A Pursuant to ORS 279B.075 (2)(c): Provide findings supporting your determination that the goods or services are for use in a pilot or an experimental project. N/A Pursuant to ORS 279B.075 (2)(d): Any other findings that support the conclusion that the goods or services are available from only one source. N/A Form #6 - Sole Source — Goods and Services — Greater than $100,000, Page 2 of 3, 6/14/2022 PUBLIC NOTICE• Pursuant to OAR 137-047-0275 (2), a Contracting Agency shall give public notice of the Contract Review Authority's determination that the Goods and Services or class of Goods and Services are available from only one source in a manner similar to the public notice of Competitive Sealed Bids under OkS 279B.055(4) and OAR 137-047-0300. The public notice shall describe the Goods or Services to be acquired by a Sole Source Procurement. The Contracting Agency shall give such public notice at least seven days before Award of the Contract. After the Sole Source Procurement has been approved by the City Council, the following public notice will be posted on the City's website to allow for the seven (7) day protest period. Date Public Notice first appeared on www.ashland.or.us - [Enter date PUBLIC NOTICE Approval of a Sole Source Procurement First date of publication: Enter date A request for approval of a Sole Source procurement was presented to and approved by the City Council, acting as the Local Contract Review Board, on [Enter date]. It has been determined based on written findings that the following Goods and Services are available from only one source. [Enter description ofgoodV and services, name ofprospective supplier and/or service Provider , cost, terms of co tract, etc.] The contract terms, conditions and specifications may be reviewed upon request by contacting [Enter City contact name, department, and telephone number] An affected person may protest the determination that the personal services are available from only one source in accordance with OAR 137-047-0710. A written protest shall be delivered to the following address: City of Ashland, [Enter department name, contact name, and complete addr s]. The seven (7) day protest period will expire at 5:00pm on [Enter date -seven calenda days from first date of publication] This public notice is being published on the City's Internet World Wide Web site at least seven days prior to the award of a public contract resulting from this request for approval of a Sole Source procurement. Form #6 - Sole Source - Goods and Semes - Greater than $100,000, Page 3 of 3, 6/14/2022 roguedisposal.com May 24, 2022 City of Ashland — Street Sweep 90 N Mountain Avenue Ashland, OR 97520 Dear Customer, At Dry Creek Landfill, we w rk hard to provide affordable and comprehensive services for the safety and protection of our Icommunity and our environment. In order to keep pace with changes in the cost of providing these services, it's necessary we periodically review and adjust our rates. Effective July I, 2022, the new rate for general disposal of Street Sweep Tonnage at our landfill will be $16.28 per ton. Thank you for your understanding and for being our valued customer. Please reach out to us at 541.779.4161 or visit us at roguedisposal.com if have any questions. Jenifer Stuber, PE General Manager Dry Creek Landfill Office 541.494.5455 Mobile 541.841.2087 ONE WEST MAIN • SUITE 401 . MEDFORD, OREGON 97501 • 541.779.4161 Council Business Meeting July 19, 2022 Agenda Item Contract Amendment to Japanese Garden Specialty LLC. From Michael A. Black, AICP APRC Director Contact Michael.Black(a)-ashland.or.us SUMMARY Council approved Resolution No. 2020-19 for the approval of an Exemption of a Public Improvement Contract for the Japanese Garden Redesign Project on October 20, 2020 and awarded the contract to Japanese Garden Specialty LLC. An amendment to the contract is being requested for $317,669.00 (25%) for project additions of fencing, decorative posts, garden deck installation, landscape lighting, welcome booth and other ancillary materials associated with those improvements. This project is being funded by a grant through the Ashland Parks Foundation. The garden is expected to be open in 2022 and these contract amendments area necessary to ensure the garden will be open and functional on time. The geneses of these changes are material cost related and represent the addition of some items that were not previously included in the original plan and are being made possible by generous gifts from donors. Without these donations, this project would not be possible. The Parks Commissioners have approved the context of the plan and the City Council is reviewing the contract for compliance with the following regulations. This contract is an Exemption from Competitive bidding therefore any amendments requires Council approval per OAR 137- 049-0910(4) ".....Amendments may be made only when: (4)(c) In the case of a Contract obtained under an Alternative Contracting Method, any additional Work was specified or reasonably implied within the findings supporting the competitive bidding exemption POLICIES, PLANS & GOALS SUPPORTED APRC Commission Goals 2019-21 Biennium Goal 17: Continue to be part of the solution for realizing an Authentic Japanese Garden in Lithia Park and securing a large donation to accommodate the building and long-term maintenance of the garden PREVIOUS COUNCIL ACTION Council approved Resolution No. 2020-19 for the approval of an Exemption of a Public Improvement Contract for the Japanese Garden Redesign Project on October 20, 2020. The Japanese Garden Landscape project was approved in the 2019-21 Biennial budget process as a CIP (Capital Improvement Project) for Parks. The Ashland Parks and Recreation Commissioners (APRC) approved the design of the Japanese Garden (January 2019) The design was amended to incorporate the 100-year old Douglas fir trees into the design and was approved by the Commission on October 28, 2019. At the September 23, 2020 Special Business Meeting the APRC approved the contact for the Japanese Garden construction be awarded to Japanese Garden Specialty, LLC. and that the contract should be presented to the City Council for approval. Page 1 of 1 C I T Y O F -ASH LAN D BACKGROUND AND ADDITIONAL INFORMATION Ashland Parks Foundation (APF) received a donation of $1,380,000 million dollars from local resident Jeff Mangin and the Marechal family in 2018 to redesign the Japanese Garden in Lithia Park. The Foundation, in return, is granting those funds and the design of the garden, which has already been approved by the Parks Commissioners, to APRC to redesign and reconstruct the current Japanese Garden. APF will be increasing the donation for this project to include the project additions. Construction for the Japanese Garden Redesign began in November of 2020 and is currently eighty percent finished with completing anticipated in the Fall of 2022. At the time of the original contract date, there were two items that were still uncertain. This contract amendment will add the following necessary elements to the contract: 1. Four decorative posts with Solar Lanterns — $14,694.75 2. Garden Installation and Materials - $86,148.00 3. Project Perimeter Temporary Fencing - $23,826.25 4. Welcome Booth Materials and Construction - $43,000.00 5. Copper Roofing for Gates and Welcome Booth - $25,000.00 6. Contingency - $25,000.00 7. Lighting - $100,000.00 TOTAL $317,669.00 All funding associated with the original contract and the funds required for the increased in the contract scope are provided by donations and grants. The largest donors being Jeffrey Mangin and the Marechal Family. Another set of donors have agreed to add $100,000 to afford the addition of landscape lighting in the garden. There is no increase in financial requirements from APRC or the City of Ashland as a result of this contract amendment. These items represent changes to the contact that are required or desirable for the aesthetic and functionality of the garden. The Ashland Parks and Recreation Commissioners are grateful to the donors who are making this improvement to the garden possible. FISCAL IMPACTS The original project cost for the project was $1,380,000, which included the original contract with Japanese Garden Specialties, LLC for $1,278,985.00 and various other costs for incidental materials and supplies. The additional project items total $317,669 which brings the contract total to $1,596,654.00 and the project total to $1,697,669.00. This project is being funded in total by a grant from APF and APRC will only be contributing to the project through in -kind donations, including arborist work, excavation and demolition work and limited general labor. The Foundation is increasing the grant to cover the additional project costs. APRC staff will offer support to the construction with in -kind matches associated with some onsite construction and the use of some of APRC's equipment. The primary donor has also agreed to provide up to $60,000 per year for ten years for the maintenance of the garden. During the ten-year period, APRC and an Ashland Japanese Garden Committee will be dedicated to the fund-raising and programmatic elements of the garden to work toward achieving financial self-sufficiency. In other words, we will be working toward a goal of a positive ROI and the donor has generously granted the garden up to ten -years in maintenance costs while we work to achieve that goal. ADDITIONAL BACKGROUND Page 1 of I CITY OF -ASHLAND APF hired Landscape designer Toru Tanaka of Japanese Garden Specialty, LLC to design a new authentic Japanese Garden. Tanaka was trained in Japan and was the Director of Portland's Japanese Garden. Very few qualified designers/contractors exist that specialize in this area of expertise. In fact, the APF engaged the two prominent Japanese Garden Designers in the northwest (Torn Tanaka and Hoichi Korisu) to participate in a design competition prior to selecting a designer. Toru Tanaka won that design competition based on the conceptual plan that he produced for the APF. The Ashland Parks Foundation as the grantor of this project hired the designer and is requiring that Japanese Garden Specialty, LLC. be the contractor to ensure that cultural sensitivities and accuracies are carried from the design to the construction. The current Japanese style garden in Lithia Park was evaluated during the Lithia Park Master Plan Process. During design week in June 2018, it was determined that the garden could potentially be redesigned and even expanded without negatively affecting the adjoining park spaces. A few of the core garden needs identified in the project include creating a truly authentic Japanese Garden that is respectful of the history and culture of this unique garden form and making the garden ADA accessible. Ashland Parks and Recreation staff and the Ashland Parks Foundations held two public information/workshops on August 1 and August 9, 2018, to engage the public about the Japanese Garden redesign. The Japanese Garden plans were originally approved in January of 2019. Soon after the approval, which included the removal of two 100-year old Douglas fir trees, the plans for the garden were put on hold by the donor and the Parks Foundation who were funding the project. The plan was amended to incorporate the 100-year old Douglas fir trees into the design and the plans for the bamboo garden have been scrapped. The amended plan was approved by the Commission on October 28, 2019 APRC has presented the Japanese Garden design to the Tree Commission, Historic Commission, Community Development, and Public Works. CEAP — This project is a landscape project and has minimal long-term environmental impacts. The design does not include the use natural gas or fossil fuels. This project is as water efficient as possible while maintain the authenticity of a traditional Japanese Garden and will make upgrades to the aging irrigation system. Recycled materials will be used when possible including wood and boulders. STAFF RECOMMENDATION The Japanese Garden has been reconstructed several times over the 100 years since it was installed. There was a major reconstruction in the 1950s and then again in the 1980s. One of the challenges with maintaining a living landscape is that it will always need regeneration after a time. The Japanese Garden is at a point when regeneration, or reconstruction, is necessary in order to maintain the aesthetic that so many people enjoy. The fact that we can regenerate the garden without public funds, and that we have secured what amounts to a $600,000 maintenance endowment over ten years, is why we are so excited about moving this project forward at this point. The garden needs work to maintain its aesthetic. It also requires an accomplished designer who is qualified in both the physical and cultural requirement to design and build an authentic Japanese Garden. We have been granted a gracious gift to not only maintain but expand the garden's aesthetic and we are excited to move this project forward. This project will also employ several local contractors and their employees for up to two years. Staff recommends the approval of the change order to increase the Japanese Garden project by $317,669.00 ACTIONS. OPTIONS & POTENTIAL MOTIONS 1.) I move approval of the change order to increase the Japanese Garden project contract with Japanese Garden Specialty, LLC by $317,669.00 REFERENCES & ATTACHMENTS Attachment 1: Form #10 Page 1 of 1 CITY OF -ASHLAND Attachment 2: Japanese Garden Drawing Attachment 3: Japanese Garden Sans Bamboo Page 1 of 1 CITY OF -ASH LAN D FORM#10 CITY OF CONTRACT AMENDMENT APPROVAL REQUEST FORM ASHLAND Request fora Change Order Name of Supplier I Contractor / Consultant: Japanese Garden specialty LLc Total amount of this contract amendment: Purchase Order Number: 20210235 $ 317,669 Title I Description: Japanese Garden Redesign ❑ Per attached contract amendment Contract Amendment Original contract amount Total amount of previous contract amendments Amount of this contract amendment TOTAL AMOUNT OF CONTRACT 1,278,985 317,669 1,596,654 100 % of original contract % of original contract 25 % of original contract 125 % of original contract In accordance with OAR 137-047-0800: 1) The amendment is within the scope of procurement as described in the solicitation documents, Sole Source notice or approval of Special Procurement. 2) The amendment is necessary to comply with a change in law that affects performance of the contract. 3) The amendment results from renegotiation of the terms and conditions, including the contract price, of a contract and the amendment is advantageous to the City of Ashland, subject to all of the following conditions: a) goods and services to be provided under the amended contract are the same as the goods and services to be provided under the unamended contract; b) Th e City determines that, with all things considered, the amended contract is at least as favorable to the City as the unamended contract; c) The amended contract does not have a total term greater than allowed in the solicitation document, contract or approval of a Special Procurement. An amendment is not within the scope of the procurement if the City determines that if it had described the changes to be made by the amendment in the procurement documents, it would likely have increased competition or affected award of contract Contract amendment is within the scope of procurement: YES NO (If "NO", requires Council approval I Attach copy of CC.) Sourcing Method: SMALL PROCUREMENT — Not exceeding $5,000 INVITATION TO BID or REQUEST FOR PROPOSAL COOPERATIVE PROCUREMENT, QRF or EXEMPTION PURSUANT TO AMC 2.50 ❑ "YES", the total amount of contract and cumulative amendments s $6,000. ❑ "YES', the total amount of cumulative amendments ❑ "YES', the total amount of original contract and ❑ If "NO", amount exceeding authority requires s 25%of original contract amount or $250,000 cumulative amendments s $100K for Goods & Services, s Council approval. Attach copy of Council whichever is less. $75K for Personal Services, < $50K for Attorney Fees. Communication. ❑ If "NO", amount exceeding authority requires ❑ If "NO", amount exceeding authority requires Council ❑ Exempt —Reason: Council approval. Attach copy of Council approval. Attach copy of Council Communication. PERSONAL SERVICES (Direct Appointment) Communication. ❑ Exempt —Reason: ❑ "YES', cumulative amendments s $35,000 ❑ Exempt —Reason: ❑ If "NO', requires council approval. Attach CC INTERMEDIATE PROCUREMENT SOLE SOURCE EMERGENCY PROCUREMENT Goods & Services - > $5,000 and < $100,000 ❑ "YES', the total amount of cumulative amendments s 25%of original contract amount or $250,000 ❑ Written Findings: Document the nature of the emergency, including necessity and circumstances Personal Services - > $5,000 and < $75,000 ❑ "YES", the total amount of cumulative whichever is less. requiring the contract amendment amendments s 25%of original contract amount ❑ If "NO", amount exceeding authority requires ❑ Obtain direction and written approval from City ❑ If "NO", amount exceeding authority requires Council approval. Attach copy of Council Administrator Council approval. Attach copy of Council Communication. ❑ If applicable, attach copy of Council Communication Communication. ❑ Exempt —Reason: ❑ Exempt — Reason: ❑ Exempt — Reason: SPECIAL PROCUREMENT INTERGOVERNMENTAL AGREEMENT ❑ "YES', the total amount of original contract and cumulative amendments are ❑ Renewal of Intergovernmental Agreement: Terms modified in accordance with initial within the amount and terms initially approved by Council as a Special agreement OR cost will not be more than 25%greater than initial agreement. Renewal Procurement. approved by City Attorney and department head affected by renewal and approved/signed ® If "NO", amount exceeding authority requires Council approval. by City Administrator. AMC 2.28.045(B) Attach copy of Council Communication. ❑ If "NO", Council approval is required. Attach copy of Council Communication Project Number o 07 4 5 - 1 2 0 Account Number, 2 3 0 0 0- 7 0 4 2 o o Account Number_ _ _ _ _ _ - — _ _ _ _ _ `Expenditure must be charged to the appropriate account numbers for the financials to reflect the actual expenditures accurately. Attach extra pages if needed. Employee Signature: Department Head Signature: (Equal to or greater than $5,000) Funds appropriated for cun-ent fiscal year: YES / NO Comments: City Manager: (Contract and addenda greater than $35,000) Finance Director (Equal to orgreater than $5,000) Date Form #10 — Contract Amendment Approval Request Form, Request for a Change Order, Page 1 of 1, 4/23/2020 011 44 44 tu, t;7L 11 "llo -NAlt O GTGNETgWER� PUAPNdIOE T 9 ATERFA1 — ARO TOFCREEK SECTON FUGGTONE S O O El PERIMETER BE—SER FALL u GPE— vEPoMEIER GTE -RN MSTERM ARDOR Z TEA GARDEN O P •PATH CREE-ECTION.- -LIN ♦ ` 3� lid 'iEEil' O 2 CREEK NP y.. Jam.. AW O H; O U ORAVEL - _ PAVNO. TVP. 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Councilor Graham went on to erroneously define a forensic audit as always being done because criminal activity is suspected. This is simply not true. According to GAAP- Generally Accepted Accounting Principles - a forensic audit does not imply anything. It does not presuppose criminal behavior. A forensic audit is a detailed review which assesses the institution's internal control structure and interviews personal. Such a review is frequently useful in revealing financial practices that may need tightening or correcting so the institution employs "best practices" inside department operations. Councilor Graham refused to remove her blinders and listen to Mayor Akins as the Mayor calmly and patiently corrected Graham's interpretations 3 times. This absurd back and°forth continued to the point of Councilor Graham bullying Mayor Akins repeatedly. Councilor Graham was out of order, an embarrassment to our City and owes an apology to Mayor Akins, CM Lessard, the City Staff present and residents physically present at the meeting and those on ZOOM. I request my comments be added to the record for the meeting 7/19/2022. Thanks Skflaa(Q,P� Susan Hall RN -Ashland