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HomeMy WebLinkAbout2025-057 Grant - OHRA CITY OF ASHLAND AFFORDABLE HOUSING TRUST FUND GRANT AGREEMENT GRANTOR: CITY OF ASHLAND GRANTEE: Options for Helping Residents 20 E Maim Street of Ashland(OHRA) Ashland, OR 97520 Address: P.O. Box 1133 PHONE: (541) 488-6002 Ashland, Or 97520 FAX: (541) 488--5311 PHONE: (541) 631-2235 Term of this Grant Agreement: July 1, 2024 to June 30,2025 Grant Funds provided under this Agreement: $155,000 This Affordable Housing Trust Fund Grant Agreement(hereinafter"Agreement") is entered into by and between the City of Ashland, an Oregon municipal corporation(hereinafter "City"), and Options for Helping Residents of Ashland,Non-profit organization. ("hereinafter "Grantee"). NOW THEREFORE, in consideration of the mutual promises and covenants contained herein,the City and Grantee agree as follows: 1. Nature of Grant. Subject to the terms and conditions of this Agreement and in reliance upon Grantee's approved grant application, the City agrees to provide grant funds to Grantee in the amount of one hundred, fifty-five thousand dollars ($155,000.00). Grant funds shall be utilized or contractually committed during the terra of this Agreement. 2. Scope of Work. Grantee shall undertake activities as more specifically set forth in Grantee's grant application, which is attached hereto as "Exhibit A" and incorporated herein by this reference. Grantee's services and obligations under this Agreement are collectively referred to herein as the "Work." 3. Qualified Work. Grantee has represented, and by entering into this Agreement now represents, that any personnel assigned to the Work referenced in this Agreement are fully qualified to perform the Work to which they will be assigned in a skilled and worker-like manner and, if required to be registered, licensed, or bonded by the State of Oregon, are so registered, licensed, and bonded. Grantee shall also maintain a current City business license. 4. Use of Grant Funds. The use of grant funds is expressly limited to the activities as set forth in this Agreement and Resolution No. 2008-34. A copy of Resolution No. 2008-34 is attached hereto as "Exhibit B" and incorporated herein by this reference. 5. Grantee agrees to acknowledge the City as a funding source in all of Grantee's printed and electronic notices and advertisements relating to the use of the grant funds. 6. Grantee agrees to submit a written report to the City on the use of the grant funds within sixty (60) days following the expenditure of the funds, but in no event later than October 31, 2025. PAGE 1 OF 5: AFFORDABLE HOUSING TRUST FUND GRANT AGREEMENT BETWEEN THE CITY OF ASHLAND AND OHRA 2024 7. Unexpended Grant Funds. Any grant funds not expended by October 30, 2025, shall be immediately returned to the City. S. Financial Records and Inspection. Grantee shall maintain a complete set of books and records relating to the Work for which the grant funds were awarded. Such records shall be kept in accordance with generally accepted accounting principles. Grantee gives the City and any authorized representative of the City access to and the right to examine all books,records,papers, or documents relating to the use of the grant funds. Such access shall be given within 72 hours of receiving notice of a request to inspect from the City. 9. Living Wage Requirements. If the total amount of grant funds awarded under this Agreement is $21,127.46 or more, Grantee is required to comply with Chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in that chapter. 10. Termination. a. Mutual Consent. This Agreement may be terminated at any time by the mutual written consent of both parties. b. City's Convenience. This Agreement may be terminated at any time by City upon not less than thirty (30) days' prior written notice. C. For Cause. City may terminate this Agreement,in whole or in part, effective upon delivery of written notice to Grantee under any of the following conditions: i. If City funding from federal, state, county or other sources is not obtained and continued at levels sufficient to allow for the grant; ii. If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the grant purposes are no longer allowable or appropriate for award under this Agreement or are no longer eligible for the funding proposed for payments authorized by this Agreement; or iii. If any license or certificate required by law or regulation to be held by Grantee to provide the Work required under this Agreement is denied, revoked, suspended, or not renewed. 11. Default. If Grantee fails to perform or observe any of the covenants or provisions contained in this Agreement or fails to expend the grant funds or enter into binding legal agreements to expend the grant funds during the term of this Agreement, the City,by written notice of default to the Grantee, may terminate this Agreement and may pursue any remedies available to the City at law or in equity. Such remedies may include, but are not limited to,termination of this Agreement,the stopping of payment on the grant funds, Grantee's payment of interest earned on grant funds or the declaration of Grantee's ineligibility for the receipt of future grant awards. In the event of termination of this Agreement, City shall stop payment or withhold any Grant funds in City's possession from Grantee, and Grantee shall immediately return all unexpended and unencumbered grant funds to City. In addition, City shall be entitled to recover any administrative costs, including attorney fees or collection costs, as a result of Grantee's failure to return any grant funds. If grant funds are not returned or it is found that Grant funds were misappropriated, Grantee shall be ineligible and disbarred from receipt of future grant funds until such matters are finally PAGE 2 OF 5: AFFORDABLE HOUSING TRUST FUND GRANT AGREEMENT BETWEEN THE CITY OF ASBLAND AND OH RA 2024 adjudicated and settled. The rights and remedies of this section are not exclusive and are in addition to any other rights and remedies available to the City under the law. 12. Notice. Whenever notice is required or permitted to be given under this Agreement, such notice shall be sufficient if given in writing and: (1) delivered personally to the addressee; (2) sent via a reputable commercial overnight courier; or (3) mailed using registered or certified United States Mail,postage prepaid, and return receipt requested,to the address set forth below: If to the City: Planning Department Attn: Linda Reid, Housing Program Specialist 20 E. Main Street Ashland, OR 97520 Phone: (541) With a copy to: City of Ashland Legal Department 20 East Main Street Ashland, OR 97520 Phone: (541) 488-5350 If to Grantee: Options for Helping Residents of Ashland. Attn: Cass Sinclair P.O. Box 1133 Ashland, OR 97520 Phone:541-631-2235 Any such notice delivered by personal delivery shall be deemed delivered and effective upon actual receipt. Any such notice sent by United States Mail,postage prepaid, shall be deemed delivered and effective five (5)business days after mailing. Any notice sent by commercial overnight courier shall be deemed delivered and effective three (3)business days after dispatch. 13. Amendments. This Agreement may not be altered, modified, supplemented, or amended in any manner except by written instrument signed by both parties. 14. Indemnity. Grantee hereby agrees to defend, indemnify, save, and hold the City, its officers, employees and agents harmless from any and all losses, claims, actions, costs, expenses,judgments, or other damages of any nature whatsoever resulting from or arising out of the performance of this Agreement by Grantee(including but not limited to, Grantee's employees, agents, and others designated by Grantee to perform work or services attendant to this Agreement). However, Grantee shall not be held responsible for any losses or damages caused by the sole negligence of the City, its officers, and employees. 15. Liability Insurance. Grantee shall, at its sole expense, obtain and maintain during the term of this Agreement, a policy or policies of liability insurance including commercial general PAGE 3 OF 5: AFFORDABLE HOUSING TRUST FUND GRANT AGREEMENT BETWEEN THE CITY OF ASHLAND AND OHRA 2024 liability insurance with a combined single limit, or the equivalent, of not less than$2,000,000 (two million dollars)per occurrence. The insurance required in this Section 15 shall include the following coverages: • Comprehensive General or Commercial General Liability, including personal injury, contractual liability, and products/completed operations coverage; and Automobile Liability. 16. Workers' Compensation Insurance. Grantee shall, at its sole expense,provide Workers' Compensation insurance in compliance with ORS 656.017,which requires subject employers to provide Oregon workers' compensation coverage for all its subject workers. 17.Assignment. Grantee shall not assign this Agreement nor subcontract any portion of any work to be performed hereunder without the written consent of the City. Any attempted assignment or subcontract without the written consent of City shall be null and void. 18. Governing Law; Jurisdiction; Venue. This Agreement shall be governed by the laws of the State of Oregon without regard to conflict of laws principles. Exclusive venue for Iitigation of any action arising under this Agreement shall be in the Circuit Court of the State of Oregon for Jackson County unless exclusive jurisdiction is in federal court, in which case exclusive venue shall be in the federal district court for the district of Oregon. Each party expressly waives any and all rights to maintain an action under this Agreement in any other venue, and expressly consents that,upon motion of the other party, any case may be dismissed or its venue transferred, as appropriate, so as to effectuate this choice of venue. 19.Non-appropriations Clause. Funds Available and Authorized: City has sufficient funds currently available and authorized for expenditure to finance the costs of this Agreement within the City's fiscal year budget. Grantee understands and agrees that City's payment of amounts under this Agreement attributable to work performed after the last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow City in the exercise of its reasonable administrative discretion, to continue to make payments under this Agreement. In the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this Agreement without penalty or liability to City, effective upon the delivery of written notice to Grantee,with no further liability to Grantee. 20.Non-Discrimination. Grantee agrees that no person shall, on the grounds of race, color, religion, creed, sex,marital status,familial status or domestic partnership,national origin, age, mental or physical disability, sexual orientation, gender identity or source of income, suffer discrimination in the performance of this Agreement when employed by Grantee. Grantee further agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules, and regulations. 21. Merger. This Agreement constitutes the entire understanding between the parties. There are no understandings, agreements, or representations, oral or written,between the parties not specified in this Agreement regarding the Work herein. Grantee, by the signature below of its authorized representative, acknowledges that it has read this Agreement,understands it, and agrees to be bound by its terms and conditions. PAGE 4 OF 5: AFFORDABLE HOUSING TRUST FUND GRANT AGREEMENT BETWEEN THE CITY OF ASHLANll AND OHRA 2024 Options for Helping Residents of Ashland (GRANTEE): CITY OF AS HLA D: By: Dan H. Cano By: PxzntedName: Printed Name: �Cd Title: Executive Director Title: Date: 317I25 Date: 3zt 1 140 2� PAGE 5 OF 5: AFFORDABLE HOUSING TRUST FUND GRANT AGREEMENT BETWEEN THE CITY OF ASHLAND AND OHRA 2024 Exhibit A Scope of Work(SOW) Project Title: Resource Navigation for Ashland Residents Capacity Building for Ashland Community Land Trust Project Overview: OHRA is requesting funds for its resource navigation service that supports individuals and families move toward self-sufficiency. Resource navigators are trauma-informed professionals who work with guests to identify and resolve barriers to stability so that guests can move forward. Resource navigation supports housing threatened and unhoused individuals and families who earn less than 120%the Area Median Income as defined by HUD. Objectives: 1. Ensure that individuals experiencing homelessness have opportunities to access resources to gain stability. 2. Based on availability of funds from other sources, provide rental assistance and other financial support to help families stabilize their living situation. 3. Building a trusting relationship with the guest and helping the guest identify the most pressing problems that they need to work on. Tasks and Deliverables: 1. Resource Navigation o Task: Provide requested appointments, referrals and resources to unhoused and housing threatened Ashland residents seeking assistance to become stable. a Deliverables: ■ As funding is available, provide rental and other financial assistance for those who qualify. ■ Provide referrals to OHRA Shelter and other available programs operated by our list of more than 60 community partners. ■ Provide referrals for care to our on-site medical clinic operated by La Clinica. Timeline: This project is expected to last approximately 12 months from the date of contract initiation. Exhibit B RESOLUTION NO. 2008- A RESOLUTION ESTABLISHING POLICIES AND PROCEDURES FOR ADMINISTRATION OF THE AFFORDABLE HOUSING TRUST FUND RECITALS: A. WHEREAS, the City of Ashland City Council approved the establishment of the Affordable Housing Trust Fund (Ordinance o196 ), to keep our community diverse by facilitating the production and preservation of affordable housing throughout Ashland; and B WHEREAS, The policies and procedures for administration of the Affordable Housing Trust Fund establish eligible uses, eligible applicants, the method by which funds are awarded, and selection criteria; and C. WHEREAS, the City Council understands the changing nature of the housing market and corresponding housing needs, and therefore has established the policies and procedures for administering the Ashland Housing Trust Fund (AHTF) to remain flexible to respond to changing market conditions and opportunities; now therefore THE CITY OF ASHLAND RESOLVES AS FOLLOWS. SECTION 1. Purpose 1.1 The purpose of the City of Ashland's Affordable Housing Trust Fund (AHTF) is to establish a dedicated source of revenue to provide ongoing funding for housing projects or programs that address the housing needs of Ashland residents. To this end the AHTF is established to address the primary purpose of encouraging the creation of housing for homeownership or rent, at a cost that will enable low and moderate income families to afford quality housing while paying no more than thirty per cent of gross household income on housing. 1.2 To promote the rehabilitation, preservation and production of quality, well designed rental and ownership housing the AHTF will award funds to community development partners that are furthering the AHTF mission. It is expecting that the local contributions made through Ashland's Affordable Housing Trust Fund will assist in maximizing the leveraging of State and Federal funds, as well as encourage private sector investment in affordable housing. Exhibit B 1.3 Understanding the high cost of housing regionally, it is evident that low and moderate income households are not being served by the housing market. To address the disparity between the cost of housing and the means of resident households to afford housing, the Affordable Housing Trust Fund aims to provide direct financial support to projects that retain or increase the supply of needed housing for households earning less than 120% the Area Median Income as defined by HUD. 1.4 The Administrative Procedures associated with the Affordable Housing Trust Fund, including fund administration, determination of eligible applicants, eligible uses and activities, award preferences, eligibility criteria, award process, and selection criteria are hereby established. Section 2. Eligible Applicants 2.1 The Affordable Housing Trust Fund is structured to ensure that many different types of organizations are eligible to receive financing. E 2.2 Eligible applicants include governmental subdivisions, community development corporations, local housing authorities, community action agencies, community-based or neighborhood-based non- profit housing organizations, other non-profit organizations, for- profit entities, and private employers. Section 3. Eligible Uses and Activities 3.1 Affordable Housing Trust Funds shall support the creation or preservation of housing that is affordable to households with incomes that do not exceed 120% of the area median income, as defined by HUD for the Medford-Ashland metropolitan service area. 3.2 Affordable Housing Trust Funds will be focused on those activities that create, preserve or acquire housing within the Ashland Urban Growth Boundary. 3.3 Housing developments financed by the Affordable Housing Trust Fund (AHTF)which receive subsidy, financing, tax credits or other assistance under a State or Federal housing program, may contain market rate units insofar as permissible under those programs and/or to the extent that they are necessary to support the creation of and/or on-going sustainability for the affordable housing units in the development. However, Affordable Housing Trust Funds may not be used to support such market rate units. 2 Exhibit 8 3.4 Affordable housing units developed utilizing subsidy from the Affordable Housing Trust Fund shall comply with the income, rent and purchase housing cost limits established by Resolution 2006- 13, as amended, and as restricted by a covenant prepared by the City of Ashland. 3.5 The Affordable Housing Trust Funds can be provided as either a grant or a loan depending on the project or program receiving funding. To retain a significant degree of flexibility the eligible uses have a broad application including the following: 3.5.a Acquisition and Construction of new affordable housing. Eligible acquisition and construction costs include reasonable costs associated with building or land purchase, including but not limited to: • Purchase price • Option costs • Financing fees •Appraisal costs • Closing costs • interest • Inspection fees • Title insurance • Relocation costs •Architectural/engineering fees • Construction costs 3.5.b Conservation of energy through the use of"green" technologies provided that the benefits of the energy savings is passed on in the form of reduced costs to the qualified occupants of the affordable housing. 3.5.c Land Banking:the purchase of land to be dedicated toward the development of affordable housing in the near or long term. 3.5.d Predevelopment activities undertaken by a community development organization in support of the development of affordable housing including planning, architectural services, engineering services, landscape design, legal services, surveys, appraisals, site clearance and demolition, environmental clearance, permit application fees and system development charges. Exhibit B 3,5.e Bridge loans to assist in development of low-income housing (for rental or owner occupancy). Bridge loans are intended to provide funding to permit housing projects to proceed in advance of the availability of permanent project funding. Bridge loan funding is available for acquisition or construction activities. 3.5f Capacity Building for non-profit affordable housing providers in the form of direct grant awards to fund administration of an affordable housing project or program. 3.5.g Rehabilitation and Emergency Repairs as part of an established program to secure units as affordable or to provide direct benefits to existing low-moderate income households. Eligible rehabilitation and emergency repair costs include but are not limited to: • Arch itecturallengineering fees • Construction costs • Relocation costs • Hazardous materials abatement including lead based paint noticing consistent with The Federal Lead Safe Housing Regulations HUD requirements at 24 CFR §35 3.5.h Direct benefits to low-moderate income households through an established program including down payment assistance, rental assistance, mortgage foreclosure prevention, emergency housing vouchers, homeownership training, renter education, or other programs intended to increase housing opportunities for Ashland's low-moderate income residents. 3.5.i Transitional and Emergency Housing for homeless individuals and families through an established program to move people toward self-sufficiency. 3.5J Other uses as deemed appropriate by the Ashland City Council as supporting the development or preservation of i affordable housing within the City of Ashland. Section 4. Preferences 4.1 The general criteria of selection are found in Section 8 and may be modified through the annual Request for Proposals, however the following preferences are provided as general guidance for future applicants for Affordable Housing Trust Funds. 4 Exhibit B 4.1.a Developments that produce "new" affordable housing units. New affordable housing units shall include housing units constructed where none had existed previously, abandoned or fire-damaged residential units to be returned to residential use, and non-residential or non-residentially-zoned property converted to residential use. Any designated new affordable housing units shall be secured as affordable through recorded Resale Restriction Covenants. 4.1.b Developments that provide new affordability. New affordability refers to existing housing where a new level of affordability is provided that does not currently exist. This could occur in rental or ownership housing where the number of affordable units is increased; where a portion of existing units will be made affordable to households at income levels substantially lower than the units previously served; or where the term of affordability on the units will be extended for a period beyond thirty (30) years. 4A.c Developments of housing utilizing the Land Trust model to secure property and perpetual affordability. 4.1.d Developments that include joint ventures between multiple non-profit developers and or for-profit developers, working in partnership, to complete an affordable housing project 4.1.e Developments that include a joint venture between service providers and non-profit affordable housing developers to create projects that contain additional benefits to low income individuals in the development of the project, or additional services for the residents upon completion. 4.1.f Developments that incorporate the use of"green" building materials, use of energy-efficient appliances, low-water use landscaping, and incorporation of building design and operational factors that minimize energy use and resource consumption as well as avoid indoor health impacts to achieve Earth Advantage Certification. 4.1.g Developments that include affordable units for the disabled and the homeless. 4.1.h Projects that propose long term affordability. 4.1.i Projects that are sponsored by non-profit organizations. Exhibit B 4.1 J Projects that use private funding sources and State funding sources to leverage the least amount of Ashland's Affordable Housing Trust Funds. Section 5. Fund Administration The Affordable Housing Trust Fund (AHTF) originated through the direction of the Ashland City Council and Ashland Housing Commission. 5.1 The City of Ashland acts as fiduciary agent and administrator of the funds. 5.2 Funds dedicated to the Ashland Housing Trust Fund shall be exclusively reserved to support the eligible uses activities identified in Section 3, and shall not be used for the general operation of the City, 5.3 The City of Ashland shall issue a request for proposals (RFP) to announce the availability of funds. The Affordable Housing Trust Fund RFP issuance shall be timed to run concurrent with the Community Development Block Grant Program award process.' 5.4 The City may issue a Notice of Funding Availability (NOFA)to specifically target up to 10% in available Affordable Housing Trust Funds to undertake eligible uses and activities identified in Section 3_ 5.5 The City of Ashland Housing Commission, and City Staff as designated by the Director of Community Development, shall review applications for Affordable Housing Trust Funds to determine project eligibility and evaluate the applications based on the selection criteria provided in the issued Request for Proposals_ The Housing Commission, and City Staff, shall provide recommendations to the City Council who shall make final award decisions. 5.6 The City aims to administer the Affordable Housing Trust Fund in a manner consistent with other affordable housing programs such as the Ashland Community Development Block Grant Program. The implementation of a comparable application, application evaluation, and approval process will provide housing developers with a consistent and coherent method for securing housing funds from the City. Coordination of the grant allocation process with other local and state funding application timelines, will help ensure that AHTF funds are best applied to leverage additional resources in support of the housing projects. Exhibit B 5.7 Affordable Housing Trust Funds will be allocated in a manner consistent with the threshold criteria provided Section 8, and consistent with State and Local Public Contracting law. Section 6. Match Requirements 6.1 The Ashland Housing Trust Fund is intended to support the development of needed housing, but is not intended to provide the sole source of funding for any development project or housing program. To ensure that affordable housing providers, and organizations that assist individuals and families in obtaining needed housing, do not rely exclusively on AHTF to support their activities, it has been determined that; 6.2 The Affordable Housing Trust Fund contribution shall not exceed more than 50% of the total project; or program, cost. Required Match can be met utilizing Community Development Bloch Grants, State or Federal Funding, direct contribution from the applicant, private donations, and the contribution of land, materials or labor to the project. 6.2.a In the case that land previously owned by the applicant is considered as required match, the value of the land shall be determined by a City approved certified appraisal completed by the applicant, unless otherwise directed in Oregon Revised Statute or City Municipal Code. 6.2.b The valuation of land, and available equity to be considered as matching funds, shall be verified by the City prior to the disbursement of an AHTF grant when its value is considered as required matching funds. 6.2.c Donated materials and labor which are proposed as required match through the development of a project shall have their value estimated at the time of application. The actual value of these contributions is subject to verification by the City at completion of the project. 6.2.d Award recipients shall provide verifiable accounting for donated labor and materials, when such was necessary to satisfy the AHTF match requirements. 6.3 A recipient of an AHTF grant that fails to verify the match requirements have been satisfied at the conclusion of a project Exhibit B would be considered cause for the City to require full or partial repayment of any AHTF grants awarded to a project. Section 7—Allocation of Funds The Affordable Housing Trust Fund is structured to allow the flexibility for the City, and housing providers, to be responsive to opportunities that arise that require an immediate expenditure of a relatively small amount of funds to secure property, or financing, as well as to ensure the majority of Affordable Housing Trust Funds are allocated through a annual competitive award process. Establishment of two distinct and separate award processes is intended to provide for both consistency and flexibility. The issuance of a Request for Proposals (RFP) which will allocate 90% of the available allocation of Affordable Housing Trust Funds will be coordinated with other local and State funding cycles to allow applicants to best structure their project financing. Additionally a Notice of Funding Availability (NOFA) may be announced, as funds permit, to allocate up to 10% of the annual funding available. A NOFA is primarily intended to be responsive to immediate needs for a limited grant or loan if needed for predevelopment activities which will further the mission of the AHTF. The distribution of any and all AHTF funds through Competitive or Non- Competitive awards as described in Sections 7.1 and 7.2, will be in accordance with State and Local Public Contracting laws. 7.1. Competitive Awards - Request for Proposals (RFP) The City of Ashland has a limited amount of Affordable Housing Trust Funds to use each year in comparison to the scope of the housing needs within.the community. As a result, it is essential that the funds are used to meet the City's priorities in an efficient and cost-effective manner. To this end a competitive award process has been established and a set of award criteria shall be developed to evaluate proposals received through a Request for Proposals (RFP).process in terms of how they address the specific priorities outlined in the annual RFP. The steps for making the competitive grant awards or loans is outlined below. 7.1 a. The City of Ashland may issue a Request for Proposals on an annual or intermittent basis depending on availability of funds, providing applicants with a minimum of 45 days to respond to the request. Exhibit B 7.1 b City Staff shall assess the project proposals to determine if the eligibility criteria are met and shall develop a recommendation to provide to the Ashland Housing Commission and the City Council. 7.1 c The Ashland Housing Commission will provide applicants the opportunity to make a presentation on their project proposal and provide community members the opportunity to comment by holding a public meeting. 7.1 d The Ashland Housing Commission will develop a grant award recommendation to the City Council using the AHTF criteria to determine which projects best meet the City's spending priorities. Each application will be rated on a numeric scale as established in the annual RFP for each criterion of selection (Section 8). 7.1 a The Ashland City Council shall make a final decision on the award of Affordable Housing Trust Funds. 7.1 f The City of Ashland shall prepare an agreement between the City and the award recipient. The Agreement shall outline the conditions of award and shall be executed prior to the disbursement of any Affordable Housing Trust Funds. 7.2. Notice of Funding Availability (NOFA) Upon electing to initiate a Notice of Funding Availability (NOFA) the City shall issue a notice of funding availability through publication in the Ashland Daily Tidings and on the City's Website providing 30 days for eligible applicants to submit qualifications for funding. The City shall review all applications received to determine if the applications meet the City's threshold criteria. If the criteria are met then the funds are awarded to, or reserved for, the applicant. Funds available through the NOFA process are awarded on a first come, first served basis, until reaching the annual funding cap. A reserve award granted to an applicant may be rescinded by the City if the applicant does not undertake the activities identified in response to the NOFA in advance of the City's issuance of another RFP or NOFA. 7.2.a On an annual basis the City shall determine the amount of funds available to be distributed through a NOFA procedure 7.2.b In no case shall the amount disbursed through the non-competitive process exceed 10% of the annual AHTF revenue in a given program year. Exhibit B 7.2.c The City of Ashland recognizes that the nature of affordable housing development acquisition of property is often opportunity dependant. Further many nonprofit housing developers lack the resources to undertake feasibility studies, due diligence inspections, preliminary drawings and other activities required to evaluate potential projects as well as apply for project financing. 7.2.d To enable non-profit organizations, community development organizations, the Housing Authority of Jackson County, and the City of Ashland, to be responsive to opportunities outside of the annual Request for Proposals timeline, the City may reserve a portion of Affordable Housing Trust Funds to support pre- development activities_ 7.2.d.1 Predevelopment activities undertaken by a community development organization in support of the development of affordable housing including planning, architectural services, engineering services, landscape design, legal services, surveys, appraisals, site clearance and demolition, environmental clearance, and payment of permit application fees may be supported through a non-competitive award of a predevelopment grant that may be required to convert to a loan if the project receives full funding. 7.2.d.2 For-profit developers are not eligible to apply for Ashland's Affordable Housing Trust Funds to assist with predevelopment costs. 7.2.e The City of Ashland is eligible to utilize the funds reserved for the NOFA process to conduct eligible activities as described in Section 3. 7.2.f The City may fund through a NOFA process an ongoing down- payment assistance program, rental assistance program, education program, rehabilitation program, or other programs intended to . increase housing opportunities for Ashland's low-moderate income residents which are administered by a non-profit or governmental organization. Section 8 AHTF Grant or Loan Award Threshold and Selection Criteria 8.01 The project is considered an eligible use or activity under Section 3, and benefits households earning less than 120% the Area Median Income. (threshold verification) �V Exhibit B 8.02 If the project is related to the provision of technical assistance to affordable housing providers, the use of Ashland Housing Trust Funds functions to increase the capacity of the organization to specifically address the mission of the AHTF. (threshold verification). 8.03 Affordable Housing Trust funds shall be limited to the minimum amount necessary to complete the project. The lower the percentage of AHTF funds requested, relative to the full project costs, the higher ranking the project shall be given. 8.04 The project addresses the unmet housing needs as identified in the Ashland Housing Needs analysis or Consolidated Plan. 8.05 The lower the income level that is targeted for the benefiting households, the higher the ranking the project shall be given. 8.06 The project provides new affordable housing, or new affordability, through retention or rehabilitation of existing housing, within the City. The greater the number of units provided, the higher the ranking the project shall be given. 8.07 The project retains the affordable housing units as affordable. The longer period of time the units remain affordable, the higher ranking the project shall be given. 8.08 The project addresses energy conservation through the integration of green building technologies in new construction, or achieves greater energy efficiency through rehabilitation of existing housing. 8.09 The project maximizes partnerships in the community (volunteers, in-kind contributions, cash contributions, multiple organizations involved, etc.). 8.10 The project utilizes already existing resources in effective and innovative ways. The project shall not duplicate service provided by another organization. 8.11 The agency submitting the proposal has the capacity to carry out the project and has had demonstrated successes completing projects of similar scope. 8.12 The budget and time line are thorough and realistic. 8.13 The project is ready for implementation. Exhibit B 8.14 If the project includes the acquisition of property, the identified property is currently available for acquisition and the applicant has secured either a purchase option or letter of interest from the seller. If the applicant is also applying for federal funding (Community Development Block Grants or HOME) they should carefully review procurement requirements and limitations before obtaining a purchase option. 8A5 That relocation of existing residents will be minimized, and when necessary the applicant has included accurate relocation assistance costs as part of the project pro forma. 8.16 The proposal demonstrates that Ashland Housing Trust Funds are the most appropriate funding source, and necessary, for the project. 8.17 Additional selection criteria may be developed and included in the annual RFP to best direct Affordable Housing Trust Funds toward an identified priority need. Numeric Rankings for each of the selection criteria shall be incorporated into the annual RFP. SECTll 9. his resolution was duly PASSED and ADOPTED this A: day of lr7' , 2008, and takes effect upon signing by the Mayor. A� Barbara Christensen, City Recorder SIGNED and APPROVED this day of 008. David Chapman, Coun 'I Chair Reviewed as to fornin icha d Appic .11 , City Attorney ,2 ASHLAND CITY COUNCIL BUSINESS MEETING MINUTES April 16,2024. 1. CALL TO ORDER Mayor Tanya Graham called the meeting to order at 6:00 pm. 1. Land Acknowledgement" Councilor Bloom read the land acknowledgement. 11. PLEDGE OF ALLEGIANC Councilor Dahle led the pledge of allegiance. III. ROLL GALL Mayor Graham,Councilors Hyatt,Bloom,Dahle, Kaplan,DuQuenne and Hansen were present. IV. MAYOR'SICHAIR OF THE COUNCIL ANNOUNCEMENTSI PROCLAMATIONS Mayor Graham reviewed speaker requests process:to speak at a Council Meeting,please fill out a speaker Request Form and give to Recorder. Indicate if you wish to speak during the public forum regarding topics not included in the agenda,or to speak regarding an agenda item so you may be brought up at the appropriate time. V. APPROVAL OF MINUTES*** 1. Minutes of the April 1,2024- Study Session Meeting 2. Minutes of April 2,2024 Business Meeting Councilor Bloom/Dahle m/s to approve the minutes. Roll Call Vote:Councilors Hyatt,Bloom,Kaplan,DuQuenne,Dahlia and Hansen,YES.Motion passed. V1. SPECIAL PRESENTATIONS None Vll, CITY MANAGER REPORT Lighting near the overpass on Ashland Street will go in next week and related fencing also going in soon. The Timberline Logging project has begun.utility billing phone lines are open M-I~during business hours and the April newsletter is published. V111. PUBLIC FORUM(15 minutes-Public input or comment on City business not included on the agenda) Sitka Moss/Trait --Read words from journalist Bison owda regarding her experience in Gaza. City Council 6ustness Meeting April 16,2024 Page 1 of 11 Amanda Morehouse/Central Point-Referred to the organization Veterans for Peace in articulating violations of human rights in Gaza according to:Foreign Assistance Act; Arras Export Control Act; US War Crimes Act;and Leahy Law. Advocated for a ceasefire in Gaza. Kira Petiz/Ashland - Urged Council to support the Climate and Clean Air Policy Package. Piper Banks/Ashland- Urged Council to pass the Climate and Clean Air Policy Package now, and not later,and brought a fetter of support from over 30 local and statewide organizations. Sam Inada/Ashland-Asked for City of Ashland to draft and pass a Resolution for a Ceasefire in Gaza that he read into the record. Brent Thompson/Ashland-Urged council to consider his last request for a plaque to describe the origins of Siskiyou Blvd acknowledging those that donated the land for it.Recalled past council discussions to defer annexation until 2040150 and focus on in-fill until then. Thompson urged the Council to focus on Additional Dwelling Units in existing City boundaries. Paul Mozina/Ashland-Disagreed with how the 5G Chapter 16 ordinance process unfolded, and expressed frustration that it did not include public recommendations. IX. CONSENT AGENDA 2. Resolution 2024-09 A Resolution of the City Council of the City of Ashland, Oregon Declaring the Month of April- Distracted Driver Awareness Month E 3. Approval of a Sewer Service Connection Use Outside of City Limits,1348 Ashland Mine Road 4. Liquor License Approval for AJ's Smoke and Grocery Store at 258 A St.Ste.2 5. Liquor License Approval for The Columbia Hotel at 262 E Main St Kaplan requested to postpone item one until the next meeting,as he would like to discuss the rate increase and franchise extension separately.McGeary said the resolution could be split into two sections in the council communications to reflect available actions and motions. McGeary said there was a change in ownership at Recology which delayed this discussion. The previous agreement had a start date of April 1,which is why that date was used,and Cotta added the rate increase was implemented April 1,2024. Councilor Wyatt/DuQuenne m/s to approve consent agenda with the exception item#1. Discussion:No Discussion Roll Call Councilors Hyatt,Bloom,Kaplan,DuQuenne,Dahle,and Hansen,YES.Motion passed. 1. Resolution 2024-11 Annual Renewal of City's Franchise Agreement with Recology Ashland Kaplan/Dahle m/s to postpone this item to the next meeting in May. Discussion:Kaplan spoke he received the terms of the franchise agreement the day prior and would like time to review.Dahle agreed.Hyatt and McGeary clarified contract terra language:annual renewals over the next seven years and then re-•negotiating the contract, not a seven-year term.Hyatt asked if the City would be in breach of contract if this item was postponed,and McGeary responded not if they wanted to review in good faith rather than City Council Business Meeting April 16,2024 Page 2 of 11 expecting to reject the contract.Kaplan stated that was not his intention,Graham also requested more time. Roll Cali Councilors Hyatt,Bloom,Kaplan,DuQuenne,Dahle,and Hansen,YES.Motion passed. 11. PUBLIC HEARINGS AND ORDINANCES 1. CDBG Awards and Action Plan Development Brandon Goldman Community Development Director and Linda Reid Housing Program Manager introduced the allocation of the Community Development Block Grants (CDBG),a Housing and Urban Development (HUD) program. Goldman spoke that the City is an Entitlement Community which receives these funds each year for eligible services. The Housing and Human Services Advisory Committee (HHSAC) review the applications and makes recommendations to Council.Reid anticipated an allocation of$179,575 based on the prior year's allocation.The City received two applications this year:Sunstone Housing Collaborative (SHC) for a capital project,and Maslow Project for a public services funding project.The HHSAC met on March 28,2024,to review these proposals,and recommended an award to the Maslow Project of$20,000 with the remaining funds,approximately$123,660,as a provisional award to SHC. Reid stated that if the funds are not utilized as reserved,then the City may reallocate them in the next fiscal year. Kaplan asked for clarity on the provisional award for Sunstone.Reid responded that Sunstone still needs to go through the RFP process and select a developer then the City will know what the project is and if it will qualify for CDBG funding.Kaplan asked if this would mean the contract would be awarded and land transferred by February 1,2026.Reid.responded that yes,that is when the City would want to reallocate the funds if the project was not moving forward and there were new applicants.Hyatt asked Reid for affirmation that the various partners involved with the Sunstone project including the Ashland School District,City,and HUD are all on the same page.Reid added that the City is not under contract now,and this provisional process would allow the City time to secure a contract that meets the CDBG requirements before the funds are awarded.Bloom asked for an explanation for the difference between committee recommendation of$20,000 and the requested amount of $18,000 for the Maslow award.Reid responded that the Maslow Project has been serving the Ashland community with good outcomes in Ashland schools and could have asked for more funding.The recommendation reflects a desire by the HHSAC to fund this project more fully. Hansen asked if the provisional award to SHC would delay the CBDG funds. Reid spoke it would not. DuQuenne commended Reid on her work,expressed support for both projects discussed,and noted she is no longer on the board of Maslow Project.Graham asked about the 2024 Action Plan included in the packet. Reid responded that the Action Plan is a one- year plan that includes desired outcomes from allocated activities,and ties back to the 5- year Consolidated Plan.As the City approaches the last year of this funding cycle,a Consolidated Annual Performance Evaluation Report outlining what was done each year within the 5-year Consolidated Plan can be utilized to assess any reallocation decisions. City council Business Meeting April 16,2024 Page 3 of 11 Councilor Hyatt/Bloom mf s to award the competitively available 2024 Community Development Block Grant funds as follows: $18,000 to the Maslow Project Public Service Project;and $125,660 in a provisional award to Sunstone Housing Collaborative. Discussion:Hyatt thanked the HHSAC and community partners.Bloom stated he liked the balance between the current need addressed by front line housing and security from Maslow, and long-term housing need addressed with Sunstone. Councilor Kaplan moved to amend the motion to award Maslow$2,000 more and Sunstone $2,000 less. Hyatt asked if awarding Maslow$2,000 more would necessitate awarding Sunstone$2,000 less.Reid responded that it did. Kaplan stated he wanted to acknowledge the Housing and Human services Advisory Committee's recommendation and move to award those amounts. No second.Motion to amend the motion fails. Graham asked for public comment.There was no public comment,and no more discussion. Roll Call: Hansen,Hyatt,Bloom,Kaplan,DuQuenne,and Dahle YES.Motion passed. lfl. UNFINISHED BUSINESS 1. Contract for 2024 Briscoe Floor Replacement&Grant Budget Review Scott Fleury,Public Works Director,spoke to the Council requesting approval for a contract with Vitus Construction to replace and mitigate about 10,900 square feet of asbestos flooring at Briscoe School in phase one of the project.Fleury also requested to review the grant budget received from the State to discuss next steps.During the public solicitation phase of this project,Vitus Construction was the only responder with a bid of about$180,000.This leaves approximately$430,000 of grant funding for a potential phase two of the flooring project and heating ventilation and air conditioning (HVAC) improvements. Fleury reviewed previous discussions about solar panels and the need for significant structural and seismic enhancements to support any installation of solar panels.A structural engineer provided a recommendation for improvement that would support this additional load. Hoag Roofing,the roofing contractor for the roof replacement portion of this project,estimated it would be about an additional $107,000.Fleury clarified this was not included in the approval Council gave for the roofing portion of this project. Fleury suggested consideration of future facility use and the life of the roof in deciding.Fleury stated most of the HVAC system is at the end of its useful life.Replacement of the HVAC would also require significant upgrades to the electrical system in the building as well as to the city's electrical distribution system to accommodate the additional electrical loads. Bloom asked about grant compliance in utilizing these grant funds to upgrade the building if later the City wanted to sell the building. Fleury replied that the grant requirements outlined what the funds could be used for,not the duration of occupancy afterwards_The grant does not account for infrastructure changes in the road and electrical distribution.Graham added that Representative Pam Marsh helped bring in the funding for this project and recalled the City Council Business Meeting April 16,2024 Page 4 of 71 intent is to preserve this historic space and to keep it as a school.The roof repair was a clear priority,as was asbestos flooring mitigation,and the HVAC system also.Those estimates were done before the cost escalation over the past few years.DuQuenne asked if the HVAC improvements would be farther down the line.Fleury explained what the HVAC improvement project would include.DuQuenne asked if the$107,000 for roofing was in preparation for solar panels.Fleury spoke that the expense is to bring the roofing up to current seismic code,which would also be able to support solar panels. DuQuenne stated the importance of bringing the building up to code,while solar panels could be discussed later, Hansen wanted assurance that the asbestos removal would be done in a safe way. Fleury responded that the project manager is working with the Oregon Child Development Coalition (OCDC)who is occupying the building and the contractor to minimize the impact.Based on the initial schedule,work could begin in July and finish mid-September.This includes complete construction phase: floor removal,mitigation,floor and fixture installation,and having all furniture moved back into place.The law requires that a certified asbestos abatement contractor do that work, which Vitus can perform.Hansen asked Fleury how he suggested to incorporate the $ 07,000 addition to the roofing project.Fleury responded it could come from the grant by reducing funding for the other.upgrades.Hansen asked what the usable life of the roof is,and Fleury recalled it was a 35- or 50-year membrane.Hyatt asked about the current conditions of the flooring tile,and Fleury stated that certain sections have already been replaced by OCDC.He mentioned they are seeing more and more tiles reach the friable stage where mitigation is required.Bloom asked if there was a delay in the project that affects the school,where could the occupants go.Fleury responded that they have had conversations with OCDC and their partners regarding this.Graham mentioned there are discussions underway with Tom McBartlett, Electric Utility Director,regarding other electrical system upgrades needed to supply this specific area and asked if Fleury had discussed addressing the electrical infrastructure needs for this project through that broader Electric Utility Master Planning process.Fleury responded that he would have that conversation with McBartlett.Hansen asked if the plywood addition to the roof would be required regardless of whether solar was added or not.Fleury responded that the improvement needed to meet seismic code would also accommodate the solar array.Fleury spoke that changes in the occupation and use of the building could trigger those code requirements.Hansen asked why this wasn't included in the original bid conversation,and Fleury replied there was not a structural analysis at the time.Bloom asked if the roof upgrade would meet code requirements. Fleury said if additional code requirements are triggered,only wall strength improvements would be needed if the roof is properly done now.Graham clarified the council would take up the two items separately starting with the floor contract. Councilor Bloom/Hyatt m/s to award a public improvement contract to Vitus Construction for project No.2019-27 Briscoe Flooring Replacement in the amount of$180,990.00. Discussion: Hyatt spoke she thinks it's important for the health and safety of the people in the building and it is in line with the discussion Council had when the grant was awarded. Roll Call:DuQuenne,Hansen,Dahle,Bloom,Kaplan,and Hyatt.YES.Motion passed. City councf!Business Meeting April 16,2024 Page 5 of 11 Fleury asked for staff direction regarding the roof and the added costs,Graham brought up the original Intention to improve the building first,and then take up conversations about future use.Fleury said that the Facility Condition Assessment (FCA) being conducted would also provide additional information.Hansen wanted to assure OCDC that the City does not have any plans to change the use of the building in the near future. DuQuenne received clarification from Fleury that the added $107,000 portion of the roof would bring the roofing portion up to code and would be funded by the grant.Kaplan expressed appreciation for catching the additional need before a 35-50-year roof was put on that might need to be re- done in the future,Graham expressed support for the added sheeting,especially since this is for a seismic upgrade in a school.Graham asked Council for a nod of heads and confirmed that staff direction is to move forward with the roofing improvement.Fleury asked for staff direction regarding the HVAC portion,as well as electrical upgrades including in the street. Hyatt suggested that after the roofing,flooring and related mitigation are complete,that the remaining$380,000 goes towards the HVAC.Graham confirmed with Fleury that his team would report back after learning more from the Facilities Condition Assessment and Facilities Planning Study. IV. NEW BUSINESS 2. "if i Were Mayor"Student Contest Winners Graham spoke about the request for applicants for the"If I Were Mayor"contest last Fall.The Oregon Mayors Association holds this contest every year. Mayors in their localities put out a call that encourages all ages to enter,and winners move on to the State contest,Graham sent our winners on to the state contest,whose awards will be In July.The two winners for 2024 were invited to come up for introduction and try out the Mayor's chair and gavel. Avalon Gerk is the middle school winner from Willow Wind.Her submission was an essay that included how to tackle a variety of challenges: from how to best support our unhoused population,to economic development,maintaining parks,and boosting the City's revenue stream all in one essay.Graham spoke how impressed she was with Gerk's ability to balance between what is an individual's responsibility,and what is the community's responsibility, Ember Richards is the fourth-grade winner from Trails Outdoor School,Richard's submission was a poster she created.Graham said Richards was able to bring in public safety through reducing wildfire risk,infrastructure improvements including bike lanes and pedestrian safety, and livability improvement with community gardens in new housing developments.Graham spoke about how Richard's poster portrayed a vibrant,wonderful,and friendly Ashland. Recess from 7*32 to 7:40. 3. 2023-25 BN Supplement Budget&Resolution-Revenue Recognition &Budget Appropriations for Fire Department Finance Director Mariano Berry presented a supplemental budget to recognize revenue for the 2023-25 biennium.Berry recognized $500,000 of interest income earned beyond what was forecasted,This amount was requested to be appropriated towards Ashland Forestlands Climate Adaptation Project for Wildfire Mitigation through the logging project that was City Council Business Meeting April 16,2024 Page 6 of 11 approved at the March 19,2024, regular business meeting.Berry then recognized $174,000 as hart of the larger Oregon State University grant of$284,000 awarded to Ashland Fire and Rescue.schools and childcare centers will receive air duality monitoring technical assistance, training,and interventions for better smoke preparedness.The grant is for$284,000,but the City is recognizing what it anticipates to expend in the current biennium. Hansen asked if the remaining balance of$109,695 could be utilized in the next biennium. Berry confirmed that amount was not expected to be expended this biennium and could be utilized in the next.Graham asked Berry where the interest increase came from,and Berry spoke it was from the accumulation of funds from the previous biennium,and investments in the local government investment pool. Councilor Dahle/Hansen m/s adopt Resolution 2024-10 authorizing a 2023-25 BN supplemental budget. Discussion:Dahle and Hansen thanked Berry and her team for their fiscal responsibility. Roll Call:Hansen,Hyatt,Bloom,Kaplan,DuQuenne,and Dahle YES.Motion passed. 4. Agreement between City of Ashland&Ashland Police Association July 1,2023w June 30,2026 Human Resources Director Molly Taylor and Chief of Police Tighe O'Meara presented the agreement,which the Police Association voted unanimously to approve. DuQuenne asked about the expiration of June 2023 and why it was only now brought to Council.Taylor responded that negotiations take time.O'Meara added that it is typical for contracts to be retroactive. DuQuenne spoke that being proactive is important and inquired further about the specific dollar amount increase.Cotta spoke that the $72,000 increase in amount was for all positions under the contract for the year.Cotta reminded Council that the City received the Ashland Police Association (APA) letter while under negotiations with the Fire contract.O'Meara explained the negotiations are inherently dependent on both parties and therefore outside of the City's control. Councilor Bloom/Dahle m/S to approve the three-year contract,ratifying the tentative agreements reached In negotiations with the Ashland Police Association,and authorize the interim City Manager and Mayor to sign the three-year contract. Discussion:Bloom expressed appreciation for the hard work of the City's officers who face increasing responsibilities.Dahle wanted O'Meara and the APA to know how proud the Council is regarding the professionalism shown by the department.Dahle spoke about his ride along with the Police and said the empathy the officers showed was astounding,The City of Ashland's Police department is to be commended. Roll Call: Hyatt,Bloom,Kaplan,Hansen,DuQuenne,and Dahle YES.Motion passed. Graham asked O'Meara to pass along to his team that the Council appreciates their work. Graham recused herself from proceedings due to a potential conflict of interest and Hyatt took over as Chair. City Council Business meeting April 16,2024 Page 7 of 11 5. Affordable Housing Trust Fund Awards Linda Reid and Echo Fields,HHSAC Chair,presented the item.This year the City offered $350,000 in Affordable Housing Trust Fund grants.The HHSAC received four applications totaling$440,000.On March 25,2024,the HHSAC conducted a public hearing,evaluated the grant applications,and made award recommendations.HHSAC and staff recommendations are consistent.The applicants were: • Ashland Community Land Trust Organizing Committee (ACLTOC)to establish a community land trust in Ashland for$40,000. * Habitat for Humanity of Rogue Valley (HHRV)for land acquisition to development affordable home ownership units for$100,000. • Opportunities for Housing Resources and Assistance (OHRA) for resource navigation to assist homeless population to attain housing for$200,000. • Sunstone Housing Collaborative (SHC) towards land acquisition for$100,000_ Reid said HHSAC and staff recommendation is:$40,000 to ACLTOC, $100,000 to HHRV,$155,000 to OHRA,and $55,000 to SHC. Bloom asked why SHC was awarded half of what was requested,Fields said SHC did not yet have a letter of agreement with the school district about the property, nor had they selected a developer. The committee also considered that the SHC applied for three funding sources and received funding from all three.Bloom asked if there was a representative from SHC present.Kristal Palmer,the Executive Director of SHC approached the Council.She spoke SHC is in the final stages of developing an RFP in conjunction with the school district's contractor. Bloom asked about previous discussions regarding earlier projected timelines,and Palmer clarified those were hopeful timelines based on RFPs going out early Spring.Hansen thanked Palmer and asked for a quick description of the project.Palmer responded that SHC looked at best practices from other developments in other states which included school districts.One important criterion is to have an integrated community of mixed income units that are indistinguishable from one another, Palmer expects a combination of townhomes,single family units,and apartments. Bloom asked Palmer whether a higher award amount would assist SHC in maintaining projected timelines,and Palmer indicated no.Kaplan asked Reid about the lack of provisional wording in this award and Reid confirmed that wording was not needed.Hansen asked about the source of this funding,and Reid responded it was from the marijuana tax funding dedicated in 2018 to the Housing Trust Fund account which is in the general fund. Councilor Hansen/Kaplan mis to award the 2024 Affordable Housing Trust funds as follows: •$40,000 to Ashland Community Land Trust organizing Committee •$100,000 to Habitat Housing Proposal • $155,000 to OHRA •$55,000 to Sunstone Housing Collective Discussion:Hansen spoke that all the awards represent one of the council's highest priorities of affordable housing and livability.Kaplan thanked the HHSAC for their work. Roll Call:Hansen,Hyatt,Bloom,Kaplan,DuQuenne,and Dahle YES.Motion passed. Mayor Graham rejoined the meeting. City council Business Meeting April 16,2024 Page 8 of 11 6. Social Service Grant Awards Reid mentioned the City has traditionally granted social service grant funding every other year.Two years ago,it was changed to once for the biennium.For the biennium,an award total of$134,000 was offered either in full,or to be split,with half given each year.The Committee received 12 applications totaling over$300,000 for this funding stream.HHSAC reviewed the applications on February 22, 2024,and made their recommendation.Hyatt asked if the recommended award structure allows the awarded organizations the ability to meet their missions.Fields spoke the recommended awards are meaningful amounts for small organizations and those with additional income streams.Reid added that smaller grants with less restrictions are better able to help community organizations.Hyatt spoke about the mental health and substance use treatment services that La Clinica will bring online.Graham asked about streamlining the process moving forward to reduce administration costs.Reid reviewed the history of the process which is now more streamlined, and Reid can more actively assist applicants. Councilor DuQuenne/Kaplan m]s to accept the Housing and Human Services Advisory Committee's award recommendations allocating the social service grant funds as follows: •Ashland Emergency Food Bank$4,333 •Ashland Food Angels$10,667 •Community Works Inc.(Dunn House)$8,000 • RVCOC- Food and Friends$6,333 •Jackson County SART$6,667 • La Cliniica$13,333 •OKRA$34,333 • Peace House$12,500 •Southern Oregon Jobs with Justice$11,667 •Sunstone Housing Collaborative$7,500 •St.Vincent De Paul$13,333 •united Way$5,333 Discussion:DuQuenne,Kaplan,and Graham thanked the HHSAC Roll Call: DuQuenne,Hansen,Dahle,Bloom,Kaplan,and Hyatt.YES.Motion passed. V. RESOLUTIONS AND CONTRACTS 7. Resolution 2024-12 Approving a Jackson County Order to Initiate Formation of Jackson County Animal Control Service District Dave Dotterrer,Jackson County Commissioner and Ashland resident asked for support to enable the citizens of Ashland to participate in the new Jackson County Animal Control Service District.The request is to pass a resolution to include the City in the territory of the district if the voters approve of the measure in November.Dotterrer emphasized the animal control program is primarily for the safety and well-being of the citizens.The shelter has been using one-time funding,but without long-term stable funding they will need to reduce the Animal Control Program.Stacy Brubaker,Director of Jackson County Health and Human Services provided a power point presentation (see attached). City Council Business Meeting April i&,2024 Page 9 of 11 Bloom asked for clarification that the request is For capital funding rather than operational funds_Joel Benton senior Deputy County Administrator and County Counsel clarified the request is for both.Bloom asked about funding services that taxpayers already expect to receive,and about the County's contingency fund. Benton spoke that citizens are used to a level of service above what Is required by the County,but funds to do so are depleted. Long- term stable funding afforded by a tax district would allow the current level of service to continue.if the measure fails,there are short-term options such a 5-or 10-year levy for capital improvements,but this would not help with long-term operational needs.Benton spoke about the County's contingency fund and articulated the various ways it was already provisionally allocated which left about 20 million unallocated.Myatt asked if there was a schedule for public engagement and why a service district where the control remains with the County was selected instead of a special district which would have its own board.Benton spoke that the presentation to municipalities is the beginning of the community engagement piece.He added the County currently has the obligation as the dog control authority which cannot be passed onto a special district,even If a special district to run an animal shelter was formed. Hyatt asked if it was passible to contract with a third-party entity to provide the extra services needed.Benton responded that while it is possible to contract with a third party,the county would still be under obligation as the dog control authority. Dahle asked how the public was involved if they were already bringing a proposal.Benton spoke the responsibility of the County was to come up with a funding plan to put to voters,who would then be able to weigh in. Kaplan asked about financials,specifically the debt service and interest rate for the bond.Benton would reach out to finance for an answer.Kaplan asked for clarification regarding the County's contribution that he did not see on the pro forma kicking in until year six.Benton clarified if this measure passes the county contribution would continue to support the program as it is already running,while the financials were about funding the capital project.Benton spoke if the measure passed in November of 2024,the County would not collect revenue until November of 2025.Kaplan inquired further and Benton could bring back a clearer financial picture to Council.DuQuenne spoke this has been on the County's Capital Improvement Program (CIP) list for the past 18 years and asked if they had presented to all 11 municipalities during this time. Benton responded that Ashland is the sixth and listed off the other presentations.DuQuenne asked about public input in formulating options such as the service district vs special district and any alternatives for transparency. Brubaker spoke that during the two years in her position,she has had ongoing conversations with multiple individuals and agencies to bring a feasibility study to the Board of Commissioners.The Board decided they wanted to put forward a service district. DuQuenne inquired further about County obligation,and Benton clarified the obligation is dog control, and having an animal shelter allows therm to serve that function when dogs need to be impounded. Public Comment Denise Krause/Ashland - Krause stated on February 29,2024,the.Jackson county Administrator updated Commissioners on overdue capital projects and stated many of those projects were not public facing including the animal shelter.on March 26, 2024,the County City Council Business Meeting April 15,2024 Page 10 of 11 Administrator unveiled a proposal for a perpetual service district.There was no public involvement in the planning process.Krause asked that alternatives be considered and publicly discussed.There is a public forum scheduled to discuss this and other options at the Medford library on April 23,2024,and urged Councilors to wait. Jeanne Chouard/Ashland—Chouard spoke that the County skipped the public input portion of this and was pushing a service district on the taxpayers. Chouard urged the Council to table this resolution and asked the County to engage participation from all stakeholders. Hyatt asked about current capacity and the responsibility the County has for Animal Control and how often the shelter is faced with the need to euthanize animals.Brubaker spoke in her two years in the position,the last two weeks were the first time that the County reached capacity and had to make decisions regarding euthanasia.Graham asked about the more expensive facility without additional capacity. Brubaker clarified there would be increased capacity but that was not the primary aim and did not know what the additional capacity would be until funding was secured.Kapan asked what would happen if Ashland voters said no,and Benton clarified that the process of presenting to municipalities will help the County Commissioners know if they will have enough tax dollars to for a service district.Graham opened the floor for a motion.No motion was made.Graham thanked the County representatives for coming.Gotta inquired if there was interest in taking this item back up at a date certain in the future. Graham polled the Councilors,and none had interest in taking this item back up in its current format. VI. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS Council liaison discussion was tabled until the next meeting due to time. VII. ADJOURNMENT OF BUSINESS MEETING Meeting adjourned at 9:30 pm, Respectfully Submitted by: City Recorder Alissa Kolodzinski Attest: Mayor Tonya Graham City Council Business Meeting April 16,2024 Page 11 of 17 I Jackson County Animal Control Service District 2024 Only Publicly Operated Animal shelter in Jackson County tvq Alm • Operated b Jackson County - p Y � • Animal Control for dogs is a function of Jackson County pursuant to Chapter 6og of the Oregon Devised Statutes • At times, authorized to impound a dog • Impounding a dog requires an animal shelter which meets the needs of the community and the animals in the care of the County at the animal shelter • There is no provision that requires the County to provide services for cats or other animals Current Faciity. Located at 5595 South Pacific Hwy,Talent ,q3 t } I Current Facility: • Built prior to 1975 • Original capacity for 14 dogs • Expanded to an additional 16 dogs and office space in 1975 • In 1gg1, current space was expanded again adding capacity for 2-5 additional dogs, bringing total to 55 • Today the current kennel capacity at the shelter is 86 , with dogs having to be housed in crates along hallways when shelter exceeds capacity to E x 3 2\ ' � \_ ■ ) �§ . w w� .■ When Over Capacity �) DATE(MMIDD/YYYY) A�" CERTIFICATE OF LIABILITY INSURANCE 03/18/2025 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Shantal Young NAME: Brown&Brown Insurance Services,Inc. HCNNo Ext: (541)772 1111 A/c,No: 3256 Hillcrest Park Drive E-MAIL Shantal.Young@bbrown.com ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC# Medford OR 97504 INSURERA: Philadelphia Indemnity Insurance Company 18058 INSURED INSURER B: SAIF 36196 Opportunities for Housing,Resources,and Assistance,Inc. INSURER C: Travelers Casualty and Surety Company of America 31194 dba:OHRA INSURER D PO Box 1133 INSURER E Ashland OR 97520 INSURER F: COVERAGES CERTIFICATE NUMBER: CL249642308 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE POLICY EFF POLICY EXP LTR INSD WVD POLICY NUMBER MM/DD/YYYY MM/DD/YYYY LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE FX OCCUR PREM SDAMAGES Ea oNcurDreme $ 100'000 MED EXP(Any one person) $ 5,000 A PHPK2684518 05/06/2024 05/06/2025 PERSONAL&ADV INJURY $ 1,000,000 GEN'LAGGREGATE LIMITAPPLIES PER: GENERAL AGGREGATE $ 3,000,000 JECT LOC PRODUCTS-COMP/OP AGG $POLICY El PRO 3'000'000P1 OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 Ea accident X ANYAUTO BODILY INJURY(Per person) $ A OWNED SCHEDULED PHPK2684518 05/06/2024 05/06/2025 BODILY INJURY(Pe r accide nt) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident PIP-Basic $ Basic X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 1,000,000 A EXCESS LAB CLAIMS-MADE PHUB910983 05/06/2024 05/06/2025 AGGREGATE $ 1,000,000 DED I X1 RETENTION $ 10,000 $ WORKERS COMPENSATION ER/� STATUTE EORH AND EMPLOYERS'LIABI LI TY Y/N SOO,000 ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ B OFFICER/MEMBER EXCLUDED? N/A 100016083 09/01/2024 09/01/2025 (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 500,000 If yes,describe under 500,000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ Management Liability Directors&Officers $2,000,000 C 107461663 06/18/2024 06/18/2025 Employment Practices $1,000,000 Crime $2,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) Certificate Holder is included as additional insured in respect to General Liability where required by written contract per form PI-GLD-HS 10/11 (attached). Professional Liability$1 M/$3M Sexual/Physical Abuse or Molestation$1 M/$3M Cyber$1 M,$5,000 Retention Employee Benefits Liability Included. This form is subject to policy terms,conditions,and exclusions. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,NOTICE WILL BE DELIVERED IN City of Ashland ACCORDANCE WITH THE POLICY PROVISIONS. 20 E Main Street AUTHORIZED REPRESENTATIVE ' Ashland OR 97520 p @ 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD PI-GLD-HS (10/11) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. GENERAL LIABILITY DELUXE ENDORSEMENT: HUMAN SERVICES This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE It is understood and agreed that the following extensions only apply in the event that no other specific coverage for the indicated loss exposure is provided under this policy. If such specific coverage applies,the terms, conditions and limits of that coverage are the sole and exclusive coverage applicable under this policy, unless otherwise noted on this endorsement. The following is a summary of the Limits of Insurance and additional coverages provided by this endorsement. For complete details on specific coverages, consult the policy contract wording. Coverage Applicable Limit of Insurance Page# Extended Property Damage Included 2 Limited Rental Lease Agreement Contractual Liability $50,000 limit 2 Non-Owned Watercraft Less than 58 feet 2 Damage to Property You Own, Rent, or Occupy $30,000 limit 2 Damage to Premises Rented to You $1,000,000 3 H I PAA Clarification 4 Medical Payments $20,000 5 Medical Payments—Extended Reporting Period 3 years 5 Athletic Activities Amended 5 Supplementary Payments—Bail Bonds $5,000 5 Supplementary Payment—Loss of Earnings $1,000 per day 5 Employee Indemnification Defense Coverage $25,000 5 Key and Lock Replacement—Janitorial Services Client Coverage $10,000 limit 6 Additional Insured—Newly Acquired Time Period Amended 6 Additional Insured—Medical Directors and Administrators Included 7 Additional Insured—Managers and Supervisors (with Fellow Included 7 Employee Coverage) Additional Insured—Broadened Named Insured Included 7 Additional Insured—Funding Source Included 7 Additional Insured—Home Care Providers Included 7 Additional Insured—Managers, Landlords, or Lessors of Premises Included 7 Additional Insured—Lessor of Leased Equipment Included 7 Additional Insured—Grantor of Permits Included 8 Additional Insured—Vendor Included 8 Additional Insured—Franchisor Included 9 Additional Insured—When Required by Contract Included 9 Additional Insured—Owners, Lessees, or Contractors Included 9 Additional Insured—State or Political Subdivisions Included 10 Page 1 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) Duties in the Event of Occurrence, Claim or Suit Included 10 Unintentional Failure to Disclose Hazards Included 10 Transfer of Rights of Recovery Against Others To Us Clarification 10 Liberalization Included 11 Bodily Injury—includes Mental Anguish Included 11 Personal and Advertising Injury—includes Abuse of Process, Included 11 Discrimination A. Extended Property Damage SECTION I —COVERAGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LIABILITY, Subsection 2. Exclusions, Paragraph a. is deleted in its entirety and replaced by the following: a. Expected or Intended Injury "Bodily injury"or property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" or"property damage" resulting from the use of reasonable force to protect persons or property. B. Limited Rental Lease Agreement Contractual Liability SECTION I —COVERAGES, COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY, Subsection 2. Exclusions, Paragraph b. Contractual Liability is amended to include the following: (3) Based on the named insured's request at the time of claim, we agree to indemnify the named insured for their liability assumed in a contract or agreement regarding the rental or lease of a premises on behalf of their client, up to $50,000. This coverage extension only applies to rental lease agreements. This coverage is excess over any renter's liability insurance of the client. C. Non-Owned Watercraft SECTION I —COVERAGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LIABILITY, Subsection 2. Exclusions, Paragraph g. (2) is deleted in its entirety and replaced by the following: (2) A watercraft you do not own that is: (a) Less than 58 feet long; and (b) Not being used to carry persons or property for a charge; This provision applies to any person, who with your consent, either uses or is responsible for the use of a watercraft. This insurance is excess over any other valid and collectible insurance available to the insured whether primary, excess or contingent. D. Damage to Property You Own, Rent or Occupy SECTION I —COVERAGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE Page 2 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) LIABILITY, Subsection 2. Exclusions, Paragraph j. Damage to Property, Item(1) is deleted in its entirety and replaced with the following: (1) Property you own, rent, or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property, unless the damage to property is caused by your client, up to a $30,000 limit. A client is defined as a person under your direct care and supervision. E. Damage to Premises Rented to You 1. If damage by fire to premises rented to you is not otherwise excluded from this Coverage Part, the word "fire" is changed to "fire, lightning, explosion, smoke, or leakage from automatic fire protective systems"where it appears in: a. The last paragraph of SECTION I—COVERAGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LIABILITY, Subsection 2. Exclusions; is deleted in its entirety and replaced by the following: Exclusions c. through n. do not apply to damage by fire, lightning, explosion, smoke, or leakage from automatic fire protective systems to premises while rented to you or temporarily occupied by you with permission of the owner. A separate limit of insurance applies to this coverage as described in SECTION III— LIMITS OF INSURANCE. b. SECTION III — LIMITS OF INSURANCE, Paragraph 6. is deleted in its entirety and replaced by the following: Subject to Paragraph 5. above, the Damage To Premises Rented To You Limit is the most we will pay under Coverage A for damages because of"property damage" to any one premises, while rented to you, or in the case of damage by fire, lightning, explosion, smoke, or leakage from automatic fire protective systems while rented to you or temporarily occupied by you with permission of the owner. c. SECTION V— DEFINITIONS, Paragraph 9.a., is deleted in its entirety and replaced by the following: A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire, lightning, explosion, smoke, or leakage from automatic fire protective systems to premises while rented to you or temporarily occupied by you with permission of the owner is not an "insured contract"; 2. SECTION IV—COMMERCIAL GENERAL LIABILITY CONDITIONS, Subsection 4. Other Insurance, Paragraph b. Excess Insurance, (1) (a) (ii) is deleted in its entirety and replaced by the following: That is insurance for fire, lightning, explosion, smoke, or leakage from automatic fire protective systems for premises rented to you or temporarily occupied by you with permission of the owner; 3. The Damage To Premises Rented To You Limit section of the Declarations is amended to the greater of: Page 3 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) a. $1,000,000; or b. The amount shown in the Declarations as the Damage to Premises Rented to You Limit. This is the most we will pay for all damage proximately caused by the same event, whether such damage results from fire, lightning, explosion, smoke, or leaks from automatic fire protective systems or any combination thereof. F. HIPAA SECTION I —COVERAGES, COVERAGE B PERSONAL AND ADVERTISING INJURY LIABILITY, is amended as follows: 1. Paragraph 1. Insuring Agreement is amended to include the following: We will pay those sums that the insured becomes legally obligated to pay as damages because of a "violation(s)" of the Health Insurance Portability and Accountability Act (HIPAA). We have the right and the duty to defend the insured against any"suit," "investigation,"or"civil proceeding" seeking these damages. However, we will have no duty to defend the insured against any"suit" seeking damages, "investigation," or"civil proceeding" to which this insurance does not apply. 2. Paragraph 2. Exclusions is amended to include the following additional exclusions: This insurance does not apply to: a. Intentional,Willful, or Deliberate Violations Any willful, intentional, or deliberate "violation(s)" by any insured. b. Criminal Acts Any"violation"which results in any criminal penalties under the HIPAA. c. Other Remedies Any remedy other than monetary damages for penalties assessed. d. Compliance Reviews or Audits Any compliance reviews by the Department of Health and Human Services. 3. SECTION V— DEFINITIONS is amended to include the following additional definitions: a. "Civil proceeding" means an action by the Department of Health and Human Services (HHS) arising out of"violations." b. "Investigation" means an examination of an actual or alleged "violation(s)" by HHS. However, "investigation"does not include a Compliance Review. c. "Violation" means the actual or alleged failure to comply with the regulations included in the HIPAA. Page 4 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) G. Medical Payments— Limit Increased to$20,000, Extended Reporting Period If COVERAGE C MEDICAL PAYMENTS is not otherwise excluded from this Coverage Part: 1. The Medical Expense Limit is changed subject to all of the terms of SECTION III - LIMITS OF INSURANCE to the greater of: a. $20,000; or b. The Medical Expense Limit shown in the Declarations of this Coverage Part. 2. SECTION I —COVERAGE, COVERAGE C MEDICAL PAYMENTS, Subsection 1. Insuring Agreement, a. (3) (b) is deleted in its entirety and replaced by the following: (b) The expenses are incurred and reported to us within three years of the date of the accident. H. Athletic Activities SECTION I —COVERAGES, COVERAGE C MEDICAL PAYMENTS, Subsection 2. Exclusions, Paragraph e. Athletic Activities is deleted in its entirety and replaced with the following: e. Athletic Activities To a person injured while taking part in athletics. I. Supplementary Payments SECTION I —COVERAGES, SUPPLEMENTARY PAYMENTS -COVERAGE A AND B are amended as follows: 1. b. is deleted in its entirety and replaced by the following: 1. b. Up to $5000 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these. 1.d. is deleted in its entirety and replaced by the following: 1. d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or"suit", including actual loss of earnings up to $1,000 a day because of time off from work. J. Employee Indemnification Defense Coverage SECTION I—COVERAGES, SUPPLEMENTARY PAYMENTS—COVERAGES A AND B the following is added: We will pay, on your behalf, defense costs incurred by an "employee" in a criminal proceeding occurring in the course of employment. The most we will pay for any"employee"who is alleged to be directly involved in a criminal proceeding is $25,000 regardless of the numbers of"employees," claims or"suits" brought or persons or organizations making claims or bringing "suits. Page 5 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) K. Key and Lock Replacement—Janitorial Services Client Coverage SECTION I —COVERAGES, SUPPLEMENTARY PAYMENTS—COVERAGES A AND B is amended to include the following: We will pay for the cost to replace keys and locks at the "clients" premises due to theft or other loss to keys entrusted to you by your"client," up to a $10,000 limit per occurrence and $10,000 policy aggregate. We will not pay for loss or damage resulting from theft or any other dishonest or criminal act that you or any of your partners, members, officers, "employees", "managers", directors, trustees, authorized representatives or any one to whom you entrust the keys of a "client"for any purpose commit, whether acting alone or in collusion with other persons. The following, when used on this coverage, are defined as follows: a. "Client" means an individual, company or organization with whom you have a written contract or work order for your services for a described premises and have billed for your services. b. "Employee" means: (1) Any natural person: (a) While in your service or for 30 days after termination of service; (b) Who you compensate directly by salary, wages or commissions; and (c) Who you have the right to direct and control while performing services for you; or (2) Any natural person who is furnished temporarily to you: (a) To substitute for a permanent"employee" as defined in Paragraph (1) above, who is on leave; or (b) To meet seasonal or short-term workload conditions; while that person is subject to your direction and control and performing services for you. (3) "Employee"does not mean: (a) Any agent, broker, person leased to you by a labor leasing firm, factor, commission merchant, consignee, independent contractor or representative of the same general character; or (b) Any"manager," director or trustee except while performing acts coming within the scope of the usual duties of an "employee." c. "Manager" means a person serving in a directorial capacity for a limited liability company. L. Additional Insureds SECTION II—WHO IS AN INSURED is amended as follows: 1. If coverage for newly acquired or formed organizations is not otherwise excluded from this Page 6 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) Coverage Part, Paragraph 3.a. is deleted in its entirely and replaced by the following: a. Coverage under this provision is afforded until the end of the policy period. 2. Each of the following is also an insured: a. Medical Directors and Administrators—Your medical directors and administrators, but only while acting within the scope of and during the course of their duties as such. Such duties do not include the furnishing or failure to furnish professional services of any physician or psychiatrist in the treatment of a patient. b. Managers and Supervisors—Your managers and supervisors are also insureds, but only with respect to their duties as your managers and supervisors. Managers and supervisors who are your"employees" are also insureds for"bodily injury" to a co- "employee"while in the course of his or her employment by you or performing duties related to the conduct of your business. This provision does not change Item 2.a.(1)(a)as it applies to managers of a limited liability company. c. Broadened Named Insured—Any organization and subsidiary thereof which you control and actively manage on the effective date of this Coverage Part. However, coverage does not apply to any organization or subsidiary not named in the Declarations as Named Insured, if they are also insured under another similar policy, but for its termination or the exhaustion of its limits of insurance. d. Funding Source —Any person or organization with respect to their liability arising out of: (1) Their financial control of you; or (2) Premises they own, maintain or control while you lease or occupy these premises. This insurance does not apply to structural alterations, new construction and demolition operations performed by or for that person or organization. e. Home Care Providers—At the first Named Insured's option, any person or organization under your direct supervision and control while providing for you private home respite or foster home care for the developmentally disabled. f. Managers, Landlords, or Lessors of Premises —Any person or organization with respect to their liability arising out of the ownership, maintenance or use of that part of the premises leased or rented to you subject to the following additional exclusions: This insurance does not apply to: (1) Any"occurrence"which takes place after you cease to be a tenant in that premises; or (2) Structural alterations, new construction or demolition operations performed by or on behalf of that person or organization. g. Lessor of Leased Equipment—Automatic Status When Required in Lease Agreement With You —Any person or organization from whom you lease equipment when you and such person or organization have agreed in writing in a contract or agreement that such person or organization is to be added as an additional insured on your policy. Such person or Page 7 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) organization is an insured only with respect to liability for"bodily injury," "property damage" or "personal and advertising injury' caused, in whole or in part, by your maintenance, operation or use of equipment leased to you by such person or organization. A person's or organization's status as an additional insured under this endorsement ends when their contract or agreement with you for such leased equipment ends. With respect to the insurance afforded to these additional insureds, this insurance does not apply to any"occurrence"which takes place after the equipment lease expires. h. Grantors of Permits—Any state or political subdivision granting you a permit in connection with your premises subject to the following additional provision: (1) This insurance applies only with respect to the following hazards for which the state or political subdivision has issued a permit in connection with the premises you own, rent or control and to which this insurance applies: (a) The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoist away openings, sidewalk vaults, street banners or decorations and similar exposures; (b) The construction, erection, or removal of elevators; or (c) The ownership, maintenance, or use of any elevators covered by this insurance. L Vendors—Only with respect to "bodily injury" or"property damage" arising out of"your products" which are distributed or sold in the regular course of the vendor's business, subject to the following additional exclusions: (1) The insurance afforded the vendor does not apply to: (a) "Bodily injury"or"property damage"for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; (b) Any express warranty unauthorized by you; (c) Any physical or chemical change in the product made intentionally by the vendor; (d) Repackaging, except when unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; (e) Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products; (f) Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; Page 8 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) (g) Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or (h) 'Bodily injury"or"property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (i) The exceptions contained in Sub-paragraphs (d)or (f); or (ii) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. (2) This insurance does not apply to any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing. j. Franchisor—Any person or organization with respect to their liability as the grantor of a franchise to you. k. As Required by Contract—Any person or organization where required by a written contract executed prior to the occurrence of a loss. Such person or organization is an additional insured for"bodily injury," "property damage" or"personal and advertising injury" but only for liability arising out of the negligence of the named insured. The limits of insurance applicable to these additional insureds are the lesser of the policy limits or those limits specified in a contract or agreement. These limits are included within and not in addition to the limits of insurance shown in the Declarations I. Owners, Lessees or Contractors —Any person or organization, but only with respect to liability for"bodily injury," "property damage" or"personal and advertising injury" caused, in whole or in part, by: (1) Your acts or omissions; or (2) The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured when required by a contract. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to "bodily injury" or"property damage"occurring after: (a) All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs)to be performed by or on behalf of the additional insured(s)at the location of the covered operations has been completed; or (b) That portion of"your work"out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. Page 9 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) m. State or Political Subdivisions —Any state or political subdivision as required, subject to the following provisions: (1) This insurance applies only with respect to operations performed by you or on your behalf for which the state or political subdivision has issued a permit, and is required by contract. (2) This insurance does not apply to: (a) 'Bodily injury," "property damage"or"personal and advertising injury" arising out of operations performed for the state or municipality; or (b) 'Bodily injury"or"property damage" included within the "products-completed operations hazard." M. Duties in the Event of Occurrence, Claim or Suit SECTION IV—COMMERCIAL GENERAL LIABILITY CONDITIONS, Paragraph 2. is amended as follows: a. is amended to include: This condition applies only when the "occurrence"or offense is known to: (1) You, if you are an individual; (2) A partner, if you are a partnership; or (3) An executive officer or insurance manager, if you are a corporation. b. is amended to include: This condition will not be considered breached unless the breach occurs after such claim or"suit" is known to: (1) You, if you are an individual; (2) A partner, if you are a partnership; or (3) An executive officer or insurance manager, if you are a corporation. N. Unintentional Failure To Disclose Hazards SECTION IV—COMMERCIAL GENERAL LIABILITY CONDITIONS, 6. Representations is amended to include the following: It is agreed that, based on our reliance on your representations as to existing hazards, if you should unintentionally fail to disclose all such hazards prior to the beginning of the policy period of this Coverage Part, we shall not deny coverage under this Coverage Part because of such failure. O. Transfer of Rights of Recovery Against Others To Us SECTION IV—COMMERCIAL GENERAL LIABILITY CONDITIONS, 8. Transfer of Rights of Page 10 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) Recovery Against Others To Us is deleted in its entirety and replaced by the following: If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit"or transfer those rights to us and help us enforce them. Therefore, the insured can waive the insurer's rights of recovery prior to the occurrence of a loss, provided the waiver is made in a written contract. P. Liberalization SECTION IV—COMMERCIAL GENERAL LIABILITY CONDITIONS, is amended to include the following: If we revise this endorsement to provide more coverage without additional premium charge, we will automatically provide the additional coverage to all endorsement holders as of the day the revision is effective in your state. Q. Bodily Injury—Mental Anguish SECTION V— DEFINITIONS, Paragraph 3. Is deleted in its entirety and replaced by the following: "Bodily injury" means: a. Bodily injury, sickness or disease sustained by a person, and includes mental anguish resulting from any of these; and b. Except for mental anguish, includes death resulting from the foregoing (Item a. above) at any time. R. Personal and Advertising Injury—Abuse of Process, Discrimination If COVERAGE B PERSONAL AND ADVERTISING INJURY LIABILITY COVERAGE is not otherwise excluded from this Coverage Part, the definition of"personal and advertising injury" is amended as follows: 1. SECTION V— DEFINITIONS, Paragraph 14.b. is deleted in its entirety and replaced by the following: b. Malicious prosecution or abuse of process; 2. SECTION V— DEFINITIONS, Paragraph 14. is amended by adding the following: Discrimination based on race, color, religion, sex, age or national origin, except when: a. Done intentionally by or at the direction of, or with the knowledge or consent of: (1) Any insured; or (2) Any executive officer, director, stockholder, partner or member of the insured; b. Directly or indirectly related to the employment, former or prospective employment, termination of employment, or application for employment of any person or persons by an insured; Page 11 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company PI-GLD-HS (10/11) c. Directly or indirectly related to the sale, rental, lease or sublease or prospective sales, rental, lease or sub-lease of any room, dwelling or premises by or at the direction of any insured; or d. Insurance for such discrimination is prohibited by or held in violation of law, public policy, legislation, court decision or administrative ruling. The above does not apply to fines or penalties imposed because of discrimination. Page 12 of 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission. ©2011 Philadelphia Indemnity Insurance Company