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HomeMy WebLinkAbout2025-066 AGRMT The Freshwater Trust °' T V 0 FPersonal Services Agreement City Information Consultant Information City of Ashland Firm Name: The Freshwater Trust Attn: Contact: Olivia Duren 20 East Main Street Address: PO Box 9205 Ashland, Oregon 97520 Portland, OR 97207 Phone: (541)488-5587 Phone: (503)222-9091 Email: Scott.fleuryp_ashland.or.us Email: oliviap_thefreshwatertrust.org Contract Summary Procurement Method: RFP — phase 3 Completion Date: 12/31/2026 one hundred sixty-seven thousand six Contract Amount: $167,642.00 hundred forty-two dollars Description of Services: Phase 3: FLOW AUGMENTATION Water Quality Trading Plan Development Supporting Documents: Scope of work Dated: 2/13/2025 Dated: Dated: Dated: This Personal Services Agreement (hereinafter"Agreement") is entered into by and between the City of Ashland, an Oregon municipal corporation (hereinafter "City") and the Consultant listed under Consultant Information above, ("hereinafter "Consultant"), for the services listed under Description of Services and Supporting Documents as noted in the Contract Summary above. In the event of conflict between provisions of the Supporting Documents, the Supporting Documents shall be given precedence in the order listed above. This Agreement, the Exhibits and the Supporting Documents shall be construed to be mutually complementary and supplementary wherever possible. In the event of a conflict which cannot be so resolved, the provisions of this Agreement itself shall control over any conflicting provisions in any of the exhibits or supporting documents. The Consultant's initials KO O 1 herein signify acknowledgment and agreement to this provision, if applicable, or if not sign "N/A". Consultant's services are collectively referred to in this Agreement as the "Work." Page 1 of 8 Personal Services Agreement Between the City of Ashland and The Freshwater Trust NOW THEREFORE, in consideration of the mutual covenants contained herein, the City and Consultant hereby agree as follows: 1. Effective Date and Duration: This Agreement shall become effective on the date of execution on behalf of the City, as set forth below (the "Effective Date"), and unless sooner terminated as specifically provided herein, shall terminate upon the City's affirmative acceptance of Consultant's Work as complete and Consultant's acceptance of the City's final payment therefore, but not later than the Completion Date listed under the Contract Summary in the table one page one of this agreement. 1.1. Time is of the essence. Time is of the essence for Consultant's performance of each and every obligation and duty under this Agreement. City, by written notice to Consultant of default or breach and ft ilbir°e by C01r� Shcta nt to Wire within 15 dIays of notice, may at any time terminate the whole or any part of this Agreement if Consultant fails to provide the Work called for by this Agreement within the time specified herein or within any extension thereof. 2. Compensation: City shall pay Consultant the sum listed as the "Contract Amount" under the Contract Summary on page one of this document as full compensation for Consultant's performance of all Work under this Agreement. In no event shall Consultant's total of all compensation and reimbursement under this Agreement exceed the Contract Amount without the express, written approval from the appropriate Department Head or City Manager. Payments shall be made within thirty(30)days of the date of receipt by the City of Consultant's invoice. Should this Agreement be terminated prior to completion of all Work, payments will be made for any phase of the Work completed and accepted as of the date of termination. 3. Consultant Obligations: 3.1. Independent Contractor Status. Consultant is an independent contractor and not an employee of the City for any purpose. Consultant shall have the complete responsibility for the performance of this Agreement. Consultant shall provide workers' compensation coverage as required in ORS Chapter 656 for all persons employed to perform Work pursuant to this Agreement. Consultant is a subject employer that will comply with ORS 656.017. 3.2. Qualified Work. Consultant has represented, and by entering into this Agreement now represents,that all personnel assigned to the Work to be performed under this Agreement are fully qualified to perform the services to which they will be assigned in a skilled manner and, if required to be registered, licensed, or bonded by the State of Oregon, are so registered, licensed, or bonded. 3.3. Assignment. With the exception of the S Ubco ntir°actoir°s specified In the SUplpoirtliirng DOCUrne nt (Scope of Woir°Ik), Consultant shall not assign this Agreement or subcontract any portion of the Work without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be void. Consultant shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all Page 2 of 8 Personal Services Agreement Between the City of Ashland and The Freshwater Trust persons employed by them, and the approval by City of any assignment or subcontract of the Work shall not create any contractual relation between the assignee or subcontractor and City. 3.4. Work Performance Obligation. Consultant shall, at its own risk, perform the Work described in the Description of Services and in the Supporting Documents and, unless otherwise specified in this Agreement, furnish all labor, equipment, and materials required for the proper performance of such Work. 3.5. Certification. Consultant agrees to and shall sign the certification attached hereto as "Exhibit U and incorporated herein by this reference. 4. Insurance: Consultant shall, at its own expense, maintain the following insurance: 4.1. Worker's Compensation. Worker's Compensation insurance in compliance with ORS 656.017, which requires subject employers to provide Oregon workers' compensation coverage for all their subject workers. 4.2. Workers' Compensation Exemption. If applicable, Consultant affirms and certifies that it is exempt from providing Workers' Compensation per ORS 656.027. Exemption criteria: Enter criteria here or delete if not applicable Consultant initials if exempt: Date: 4.3. Professional Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence. This is to cover any damage caused by error, omission or negligent acts related to the Work to be provided under this Agreement. 4.4. General Liability insurance with a combined single limit, or the equivalent, of not less than$2,000,000(two million dollars) per occurrence for Bodily Injury, Death, and Property Damage. 4.5. Automobile Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) for each accident for Bodily Injury and Property Damage, including coverage for owned, hired or non-owned vehicles, as applicable. 4.6. Notice of cancellation or change. There shall be no cancellation, material change, reduction of limits or intent not to renew the insurance coverage(s)without thirty(30) days' prior written notice from the Consultant or its insurer(s) to the City. 4.7. Additional Insured/Certificates of Insurance. Consultant shall name the City of Ashland, Oregon, and its elected officials, officers and employees as Additional Insureds on any insurance policies, excluding Professional Liability and Workers' Compensation, required herein, but only with respect to Consultant's services to be provided under this Agreement. The consultant's insurance is primary and non-contributory. As evidence of Page 3 of 8 Personal Services Agreement Between the City of Ashland and The Freshwater Trust the insurance coverages required by this Agreement, the Consultant shall furnish acceptable insurance certificates prior to commencing the Work under this Agreement. The certificate will specify all of the parties who are Additional Insureds. Insuring companies or entities are subject to the City's acceptance. If requested, complete copies of insurance policies; trust agreements, etc. shall be provided to the City. The Consultant shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self-insurance. 5. Termination: 5.1. Mutual Consent. This Agreement may be terminated at any time by the mutual consent of both parties. 5.2. City's Convenience. This Agreement may be terminated by City at any time upon not less than thirty (30) days' prior written notice delivered by certified mail or in person. 5.3. For Cause. City may terminate or modify this Agreement, in whole or in part, effective upon delivery of written notice to Consultant, or at such later date as may be established by City under any of the following conditions: • If City funding from federal, state, county or other sources is not obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services; or • If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this Agreement or are no longer eligible for the funding proposed for payments authorized by this Agreement; or • If any license or certificate required by law or regulation to be held by Consultant to provide the services required by this Agreement is for any reason denied, revoked, suspended, or not renewed. 5.4. For Default or Breach. Either City or Consultant may terminate this Agreement in the event of a breach of the Agreement by the other. Prior to such termination the party seeking termination shall give to the other party written notice of the breach and its intent to terminate. If the party committing the breach has not entirely cured the breach within fifteen (15) days of the date of the notice, or within such other period as the party giving the notice may authorize in writing, then the Agreement may be terminated at any time thereafter by a written notice of termination by the party giving notice. 5.4.1. Default: The Consultant shall be in default of this Agreement if Consultant: commits any material breach or default of any covenant, warranty, certification, or obligation under the Agreement; institutes an action for relief in bankruptcy or has instituted against it an action for insolvency; makes a general assignment for the benefit of creditors; or ceases doing business on a regular basis of the type Page 4 of 8 Personal Services Agreement Between the City of Ashland and The Freshwater Trust identified in its obligations under the Agreement; or attempts to assign rights in, or delegate duties under, this Agreement. 5.5. Obligation/Liability of Parties. Termination or modification of this Agreement pursuant to subsections 5.1, 5.2, or 5.3 above shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination or modification. However, upon receiving a notice of termination (regardless of whether such notice is given pursuant to subsection 5.1, 5.2, 5.3, or 5.4 of this section, Consultant shall immediately cease all activities under this Agreement, unless expressly directed otherwise by City in the notice of termination. Further, upon termination, Consultant shall deliver to City all documents, information, works-in-progress and other property that are or would be deliverables had the Agreement been completed. City shall pay Consultant for Work performed prior to the termination date if such Work was performed in accordance with this Agreement. 5.6. The rights and remedies of City provided in this subsection are not exclusive and are in addition to any other rights and remedies provided by law or under this Agreement. 6. Indemnification: C01r� Shcta nt Ir"neir°eIby agirees to defend, liirndler7riirnlify, save, and (hold City, Its off`liceit , eirnlplcyee , and agents harrirfless fr°oirn any and all Ilosses, cIlaiir7ri , actions, costs, expenses, jUdgirrne nt , air otlr"neir dairnages t°eShcfing fr°oirn liirnjLfir°y to any Ipeirsoirn (liirnClUdiirng liirnjUir°y r°eShcfing lI In death), air dIairnage (liirnClUd iirng Iloss air dIestiwC icn) to Ipir°opeir°ty, of whatsoeveir° irnatUir°e airising cut of air Incident to the Ipeir°forirnairnce of this Agireeirnent by C01r� Shcta nt (liirnClUdiirng IbUt not Illiirnited to, C01r� Shcta nt' eirnlplcyee , agents, and otheirs designated by C01r� Shcta nt to p it°forirn VVoir°Ik air° e iti���.: °vi s attendant to this gir�w��w�irneirnt) c the extent Ipeir°rnirtted Uirnd eir° the Oir°ego n T'oir°t Clairris Act, City Ir"neir°eIby agirees to defend, liirndler7riirnlify, save, and (hold C01r� Shcta nt, Its off,iceit , eirnlplcyee , and agents harrirfless fr°oirn any and all Ilosses, cIlaiir7ri , actions, costs, expenses, jUdgirrne nt , air dairnages t°eShcfing fr°oirn air caUsed by the negligence air° irolrngfdl acts of City, Its off,iceit , eirnlplcyee , and agents. 7. Consultant's Compliance with Tax Laws: Consultant represents and warrants to the City that: Consultant shall comply with all Oregon tax laws, including but not limited to ORS 305.620, ORS 305.380(4), and ORS Chapters 316, 317, 318, in addition to any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions and any tax provisions imposed by a political subdivisions of the State of Oregon. 8. Living Wage Requirements: If the amount of this Agreement is $26,429.65 or more, Consultant is required to comply with Chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in that chapter, to all employees performing Work under this Agreement and to any Subcontractor who performs 50% or more of the Work under this Agreement. Consultant is also required to post the notice attached hereto as "Exhibit B" predominantly in areas where it will be seen by all employees. Page 5 of 8 Personal Services Agreement Between the City of Ashland and The Freshwater Trust 9. Notice: Whenever notice is required or permitted to be given under this Agreement, such notice shall be given in writing to the other party by personal delivery, by sending via a reputable commercial overnight courier, by mailing using registered or certified United States mail, return receipt requested, postage prepaid, air sent via eirnaill when accor7riIpanlied by electir°onlic co nfiirirnaticirn, at the addresses set forth on page one of this agreement with a copy to: City of Ashland — Legal Department 20 E. Main Street Ashland, Oregon 97520 Phone: (541) 488-5350 The IFir°es lr"nwateir° Tr°USt ttirn: Legal IDepairtirne nt P.O. IBox 9205 10. General Provisions: 10.1. Ownership of Work/Documents: All VVoir°Ik Ipirodlnw Ct air deliveirables pirodlnwuced a specified lI In the Scope of VVoir°III attached to this Agireeirnent shall Ibecor7rie the Iphysical pir°olpeirty of the City. .T'o the extent the VVoir°III Ipir°odlnw ct and deliveirables incoirlpoirato Ipir°e- exis iirng lirntellleCtnwual Ipir°ope irty Of C01r� Shcta nt, ConShcta nt Ir"neir°eby girants City a Ipeir°petnwual, fnwulllly Ipaid, ncne)cCllUsive and irncirntir°airnsfeir°aIble license to Use S nwuClh Ipir°e-.xis iirngIpir°ope irty foie° City's 1puirli OSE.: as I .Cifili :ri liirn Exhibit A, Consultant it :taiins ow neir°s Ihilp of any and all copyir°light, patent, lir°adleirnairIII, Ipir°olpirietair°y air any ollr"neir Ipir°olecled lirntellleClnwual Ipir°olpeirly rights rndlnwudled liirn, air dlelliveir°ed with, the VVoir°III Ipir°odlnwuCl air dlelliveir°aIble . The City has a Ipeirpetnwual, royalty-l'ir°ee license to Use the lfya irk. 10.2. 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. Consultant 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 Consultant, with no further liability to Consultant. 10.3. Statutory Requirements: The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 27913.220, 27913.230 and 27913.235. Page 6 of 8 Personal Services Agreement Between the City of Ashland and The Freshwater Trust 10.4. Nondiscrimination: Consultant 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 any Work under this Agreement when employed by Consultant. Consultant agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. Further, Consultant agrees not to discriminate against a disadvantaged business enterprise, minority-owned business, woman-owned business, a business that a service-disabled veteran owns or an emerging small business enterprise certified under ORS 200.055, in awarding subcontracts as required by ORS 279A.110. 10.5. Governing Law: This Agreement shall be governed by the laws of the State of Oregon without regard to conflict of laws principles. Exclusive venue for litigation 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. 11. Merger: This agreement and the attached exhibits constitute the entire understanding and agreement between the parties. No waiver, consent, modification or change of terms of this agreement shall bind either party unless in writing and signed by both parties. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this agreement. Consultant, by signature of its authorized representative, hereby acknowledges that he/she has read this agreement, understands it, and agrees to be bound by its terms and conditions. Page 7 of 8 Personal Services Agreement Between the City of Ashland and The Freshwater Trust WITNESS WHEREOF, the parties have executed this Agreement in their respective names by their duly authorized representatives as of the dates indicated below. This Agreement may be executed in two counterparts, each of which shall be deemed an original, with equal force and effect as if executed in a single document. City of Ashland: The Freshwater Trust(Consultant): By: By. J �4-4-- 4,,4 Sabrina Cotta, City Manager Signature 4/9/2025 Kimberlee Obilana Date Printed Name VP People and Operations Title Purchase Order No. 4.4.25 Date (. --9 is to be submitted with this signed Agreement) APPROVED AS TO FORM: City Attorney 4.9.25 Date Page 8 of 8 Personal Services Agreement Between the City of Ashland and The Freshwater Trust Exhibit B CITY OF . OREGON City of Ashland LIVING WAGE IT per hour, effective June 30, 2024. The Living Wage is adjusted annually every June 30 by the Consumer Price Index. working on a project or employers may add the value portion of the business of of health care, retirement, their employer, if the 401 K, and IRS eligible employer has ten or more cafeteria plans (including employees, and has received childcare) benefits to the ➢ For all hours worked under a financial assistance for the employee's amount of wages. service contract between their project or business from the employer and the City of City of Ashland over ➢ Note: For temporary and Ashland if the contract $26,429.65. part-time employees, the exceeds $26,429.65 or more. Living Wage does not apply ➢ If their employer is the City of to the first 1040 hours worked ➢ For all hours worked in a Ashland, including the Parks in any calendar year. For month, if the employee and Recreation Department. more details, please see spends 50%or more of the Ashland Municipal Code employee's time in that month ➢ In calculating the living wage, Section 3.12.020. For additional information: Call the Ashland City Manager's office at 541-488-6002 or write to the City Manager, City Hall, 20 East Main Street, Ashland, OR 97520, or visit the City's website at www.ashland.or.us. Notice to Employers: This notice must be posted in areas where it can be seen by all employees. A Exhibit C Certifications/Representations: Consultant, by and through its authorized representative, under penalty of perjury, certifies that (a) the number shown on the attached W-9 form is its correct taxpayer ID (or is waiting for the number to be issued to it and (b) Consultant is not subject to backup withholding because: (i) it is exempt from backup withholding, or (ii) it has not been notified by the Internal Revenue Service (IRS) that it is subject to backup withholding as a result of a failure to report all interest or dividends, or (iii) the IRS has notified it that it is no longer subject to backup withholding. Consultant further represents and warrants to City that: (a) it has the power and authority to enter into this Agreement and perform the Work, (b) the Agreement, when executed and delivered, shall be a valid and binding obligation of Consultant enforceable in accordance with its terms, (c) the work under the Agreement shall be performed in accordance with the highest professional standards, and (d) Consultant is qualified, professionally competent, and duly licensed (if applicable) to perform the Work. Consultant also certifies under penalty of perjury that its business is not in violation of any Oregon tax laws, it is an independent contractor as defined in the Agreement, it is authorized to do business in the State of Oregon, and Consultant has checked four or more of the following criteria that apply to its business. KO (1) Consultant carries out the work or services at a location separate from a private residence or is in a specific portion of a private residence, set aside as the location of the business. KO (2) Commercial advertising or business cards or a trade association membership are purchased for the business. KO (3) Telephone listing is used for the business separate from the personal residence listing. KO (4) Labor or services are performed only pursuant to written contracts. KO (5) Labor or services are performed for two or more different persons within a period of one year. KO (6) Consultant assumes financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of performance bonds, warranties, errors and omission (professional liability) insurance or liability insurance relating to the Work or services to be provided. A�' ks Consultant's signature 4.4.25 Date THEThe Freshwater Tmst protects and restores (111,11sfvesh�eterecosysems Using technology FRESHWATER ^ � . 01 N��N���U U �����.U &��� endincendve-basedsmiu:imns,we're ohanq�inq�the TRUSTNN���- cou�eofconsemedononedmeUnethetmette� U , City of Ashland Flow Augmentation Water Quality Trading Plan for Excess Thermal Load Scop e pe o" Work � ������ February l3'2O25 Background The City of Ashland,Oregon (the City) outlined the components of the Flow Augmentation WaterQuahty Trading P[an for Excess The rnnai Load (Project#20l2'l2) inapubUcRequestforOuaiificationsBased Pro posa[s that closed in Apri[2022.The components described in that document were broken into the following project phases.TheCityiscontractingeachphaseoftheproject separately. * Phase l: Feasibiiitv/LinnitationsStudy * Phase 2:Thermal Benefit Analysis * Phase 3:Water Quality Trading Plan Development Foiiovvingtheevaivationoftvvoquaiifications'basedproposais'theCitynotifiedTheFreshvvaterTrust(TFT) in September 2022 that the City intended to begin contract negotiations with TFT for professional services for Phase lof Project#202l 12FiovvAugnnentationVVaterOuaiityTradingPianforExcessThernnaiLoad.The Phase 1 contract was executed in March 2023.The City subsequently contracted with TFT for Phase 2 of Project#2012-12 in March 2024. Below is the proposed Scope of Work and Budget for Phase 3 submitted by TFT and its partners Jacobs Engineering Group (Jacobs) and Aquatic Ecosystem Sciences (AES),collectively the"Consulting Team". Project Objectives As outlined in the Request for Qualifications Based Proposals and summarized here,Ashland's Flow Augmentation Water Quality Trading(WQT) Plan for Excess Thermal Load projectvviiifaciUtatereguiatory compliance with Excess Thermal Load (ETL)water quality provisions and compliance schedule requirements in the City's recently renewed National Pollution Discharge Elimination System (NPDES) Permit,effective March 1,2022.The NPDES Permit regulates effluent discharges from Ashland's Wastewater Treatment Plant (WWTP)to receivingwaters in Bear Creek and Ashland Creek.The Consulting Team provides applicable studies,analysis, modeling,and reporting[eadingto and inc[udingthe development of a WQT Plan pursuant to applicable Oregon Water Qua[ityTrading rules in OAR 340-039.The WQT Plan will provide a strategy for ETL reduction atthe WWTP outfaR in Bear Creek via thermal benefit Alternatives identified in Phase 1.The project phases and schedules are based on the NPDES Permit Compliance Schedule,and include the following: * Phase 1: Feasibility/ Limitations Study-Complete a study and submitfinclings to Oregon Department of Environmental Quality(DEQ) identifyingthe feasibility and [imitations of Alternatives Scope of Work-Phase 3:Flow Augmentation Water Quality Trading Plan � to generate thermal benefit in Bear Creek and offset the City's future ETL, including cold-water releases from Reeder Reservoir,flow augmentation in Ashland Creek,and expansion of the City's existing riparian WQT program.A final report on feasibility must be submitted to DEQ by March 1, 2024. • Phase 2:Thermal Benefit Analysis-Complete a study and submit findings to DEQ quantifying thermal benefits of Alternatives identified in Phase 1 and selected by the City for further analysis.A final report on the thermal benefits analysis must be submitted to DEQ by March 1,2025. • Phase 3:Water Quality Trading Plan Development- Develop a Draft Water Quality Trading Plan for DEQ review which details an analytical approach to evaluate benefits transferrable to the outfall site in Bear Creek and permit conditions.A Draft WQT Plan must be submitted to DEQ by March 1,2026. While not explicitly stated in the Compliance Schedule,it is inferred that full compliance includes submission of a final WQT Plan. Following Draft WQT Plan submittal,support the City during the applicant and public review periods for the Final WQT Plan review and adoption.Compliance with the ETL limit must be fully achieved by March 1,2027. In Phase 1,the Consulting Team completed a study identifying the feasibility and limitations of Alternatives for the City to offset its ETL by generating thermal benefit to Bear Creek.The Consulting Team delivered a draft Feasibility and Limitations Report to the City on January 31,2024 and a final report on February 26,2024, ahead of the City's deadline to submit the final report to DEQ by March 1,2024. In Phase 2,the Consulting Team is completing an analysis quantifying the thermal benefits of Alternatives selected by the City.A draft report was delivered February 5,2025 and a final report will be delivered by February 28,2025 ahead of the City's deadline to submit the final report to DEQ by March 1,2025.The Consulting Team has supported the City in discussing findings with the Oregon DEQ in both Phases. Based on the results of Phase 1 and Phase 2, the Consulting Team provided a recommendation to proceed with Phase 3 on November 14,2024. Contracting and initiation of Phase 3 of the project concurrent with the completion of Phase 2 is necessary to allow the City to stay on track with its NPDES Permit Compliance Schedule. Proposed Scope of Work Phase 3 of the project is organized into four tasks.The tasks include: Phase 3:Water Quality Trading Plan Development • Task 1- Project Management • Task 2- Draft Water Quality Trading Plan • Task 3- Final Water Quality Trading Plan and Regulatory Support • Task 4-Operational Support The work included under each task is described in more detail in the following sections. Scope of Work-Phase 3: Flow Augmentation Water Quality Trading Plan 2 General Assumptions The level of effort and costa re based on the following general assumptions: • Services covered under this project begin with Notice to Proceed and end with delivery of the deliverables noted under this scope of work. • The Notice to Proceed is issued on or before March 1,2025. • The City will provide the Consulting Team with all information in the City's possession relating to services provided in this scope in response to information requests.The Consulting Team will reasonably rely upon the accuracy,timeliness,and completeness of the information provided by the City. Additional assumptions are noted under individual subtasks. Phase 3:Water Quality Trading Plan Development In Phase 3,the Consulting Team will develop a permit-ready WQT Plan inclusive of the actions selected by the City in Phase 2 to produce thermal benefits at the WWTP outfall site in Bear Creek, including cold-water release and/or flow augmentation.TFT and the Consulting Team will also support the City in trading plan negotiations with DEQ and the DEQ-led applicant and public review periods for the WQT Plan. Task 1- Project Management TFT will organize and manage the Consulting Team,oversee the project,and coordinate with the City's project manager and staff.TFT will ensure that the work is performed with the industry standard of care.TFT, its partners,and City staff will meet as required during the project duration, including to review the scope, budget,schedule,and deliverables.TFT shall prepare monthly invoices and progress reports,which will identify: • Work completed during the month as a percentage of completion of each task. • Needs for additional information or reviews by the City. • Any scope,schedule,or budget issues and changes. Assumptions: • Task work begins in Q12025 and continues through Q4 2026 for a 22-month duration. • Regular meetings will occur between the City and TFT (assumed monthly) and will include other Consulting Team members as necessary. Task 2- Draft Water Quality Trading Plan The City's existing WQT Plan,approved by DEQ on February 18,2022,describes how temperature credits are generated from riparian shade restoration.The Consulting Team will develop necessary provisions for the WQT Plan to allow for cold-water release and/or flow augmentation as credit-generating actions for ETL reduction at the WWTP outfall in Bear Creek.The Draft WQT Plan will be developed pursuant to applicable Oregon Water Quality Trading rules specified in OAR 340-039.This Draft WQT Plan will describe how the Cold- water release/flow augmentation components fit within the City's overall temperature program and how those components conform to Oregon's 2015 WQT rules and Internal Management Directive,and EPA's Scope of Work-Phase 3: Flow Augmentation Water Quality Trading Plan 3 guidance on WQT.This language will serve to define the terms necessary to generate thermal credits from cold-water release/flow augmentation,which may include credit modeling approaches,definition of baseline, transparency mechanisms(e.g.,quality standards, protocols,credit cycle management),operationalization and monitoring,and other components of the City's temperature credit program.An initial Draft WQT Plan report will be provided to the City for review by January 31,2026.An updated Draft WQT Plan that integrates feedback and other discussion will be provided to the City by February 28,2026,ahead of the City's deadline to submit the Draft WTP Plan to DEQ by March 1,2026. The Draft WQT Plan will(firms with lead responsibility are indicated in parentheses): • Define regulatory baseline for stream temperature and flow volume and describe how thermal benefit actions exceed baseline requirements(TFT/Jacobs). • Define the credit accounting framework initiated in Phase 2,including how regression equations developed in Phase 2 should use measurements of cold-water release/flow augmentation actions to calculate thermal credits for ETL offset of WWTP effluent discharge (Jacobs/TFT). • Define quality standards for implementing cold-water release and/or flow augmentation actions,the performance criteria against which these actions can be verified,and verification methods (TFT/Jacobs). • Describe methods and frequency of how water quality benefits will be monitored and reported using quantifiable indicators of changed Reeder Reservoir and Ashland Creek operations (Jacobs/TFT). • Describe how credit generation and usage will be tracked and how this information will be made available to the public(TFT). • Define credit duration,which is the period between when a credit becomes usable as an offset and when the credit is no longer valid (TFT). • Define trading ratios and their effect on size of the credit obligation (TFT). • Develop the WQT Plan in conformance with applicable Oregon Water Quality Trading rules in OAR 340- 039,Oregon's 2015 WQT Internal Management Directive,and EPA's guidance on WQT (TFT). • Articulate adaptive management procedures, including a description of how monitoring and other information may be used overtime to adjust the approach and under what circumstances (Jacobs/TFT). Assumptions: • The content of the City's existing WQT Plan that was approved by DEQ on February 18,2022,will not be substantially affected by adding cold-water release and/or flow augmentation practices for thermal offset. • The City will review and provide comments on the initial Draft WQT Plan within two weeks of draft report submittal. Task 3- Final WQT Plan and Regulatory Support Compliance with the final Outfall 004 ETL limits must be fully achieved by March 1,2027.While not explicitly stated in the Compliance Schedule,it is inferred that full compliance includes submission of a final WQT Plan for DEQ approval,following standard applicant and public review periods.The Consulting Team will support conversations between the City and DEQ in pursuit of DEQ's confirmation that the Draft WQT Plan is Scope of Work-Phase 3: Flow Augmentation Water Quality Trading Plan 4 consistent with Oregon WQT rules and will incorporate input provided by DEQ and the public into the Plan. Once the Draft WQT Plan has received preliminary acceptance from DEQ,the Consulting Team will provide a final Draft WQT Plan for public comment. Following the public review period,the Consulting Team will incorporate appropriate revisions based on the public comments and will prepare a Final WQT Plan for DEQ approval. Task 3 work includes (firms with lead responsibility are indicated in parentheses): • Assist the City in responding to and resolving DEQ comments on the Draft WQT Plan during the applicant review period and incorporate DEQ input to create a final Draft WQT Plan provided to the City by June 30,2026 (TFT/Jacobs/AES). • Support the City in submitting the final Draft WQT Plan for public review and comment and incorporating the results of the public review process to create a Final WQT Plan for DEQ approval (TFT/Jacobs). • Support the City in thermal compliance strategy, DEQ coordination,and meetings in pursuit of DEQ approval of a Final WQT Plan (TFT/Jacobs). Assumptions: • DEQ cannot approve any modifications to the City's existing NPDES permit, including the WQT Plan that is incorporated by reference into the permit, if the permit is administratively extended beyond its expiration date.Therefore,the City's goal will be to incorporate the Final WQT Plan into the City's existing NPDES permit before it expires on January 31,2027.This will enable the City to use flow augmentation and/or cold-water release actions from the Final WQT Plan for thermal credits to offset any exceedances that may arise once the final Outfall 004 ETL limits go into effect on March 1,2027, per the compliance schedule in the City's existing NPDES permit. • Incorporating the Final WQT Plan into the City's existing NPDES permit may require a modification to the existing WQT Plan,as described in Schedule D of the City's existing NPDES permit,or a permit modification. If a permit modification is required,a permit modification request should be submitted to DEQ no later than March 2026 to give DEQ time to complete the modification before the City's existing permit expires on January 31,2027. • Relevant meetings will be held between the City and DEQ during the development of the Draft WQT Plan.Two meetings are assumed. • Relevant meetings will be held between the City and DEQ within two months after the Draft WQT Plan is submitted to DEQ.Two meetings are assumed. • One public review meeting hosted by DEQ is assumed,with attendance by DEQ,City,TFT,and Jacobs staff. • Up to two TFT staff and up to two Jacobs staff will support the City in preparation and attendance at these five meetings,with as-needed support from other Consulting Team members. • Most meetings will be held via web conferencing. Up to three TFT and/or Jacobs staff may travel from the Portland area to attend one in-person meeting. • It is assumed that DEQ will respond to the City and TFT with written comments on the Draft WQT Plan by April 30,2026 and TFT and the Consulting Team will provide a final Draft WQT Plan to address DEQ comments by June 30,2026.This report version will be used by DEQ in the public review period. Through early coordination with DEQ during the Draft WQT Plan development,it is assumed that Scope of Work-Phase 3: Flow Augmentation Water Quality Trading Plan 5 efforts to address DEQ's comments on the Draft WQT Plan and public comments on the Draft final WQT Plan will not require any revised modeling or extensive revisions to the plan. Task 4-Operational Support The Team will support the City in planning to implement and operationalize cold-water release and/or flow augmentation for temperature compliance. Components supporting operationalization will be defined with the City in advance of any work under this task, but may include (firms with lead responsibility are indicated in parentheses): • Guidance for predicting upcoming potential thermal excess and planning to take offset action (Jacobs). • Guidance for design and implementation of a thermal benefit monitoring system (Jacobs/AES). • Identify steps needed to protect instream flow for augmentation use including coordination with the Oregon Water Resources Department to transfer water right certificate type of use (TFT). • Forecasting Water Treatment Plant operational adjustments,such as needs for additional caustics to be used in the event of cold-water release of lower pH water(Jacobs). • Support proactive City planning by identifying conditions under which actions included in the WQT Plan may not fully offset ETL excess,such as severe drought/supply limitations (Jacobs/AES). • Document recommended operationalization considerations in a short memo provided to the City (Jacobs/AES). Assumptions: • This task is meant to cover operational support activities that are still to be defined in coordination with City staff.Work under this task will not commence without approval from the City's project manager on specific activities to be conducted. Due to the open scope definition,this task covers up to 65 hours of Consulting Team labor. Phase 3 Timeline: Q1 2025-Q4 2026 for 22 months to complete Phase 3 Estimated Cost: $167,642 Phase 3 Deliverables: A) Monthly progress reports submitted with invoice documentation. B) Initial Draft WQT Plan provided to the City for review by January 31,2026. C) Updated Draft WQT Plan provided to the City by February 28,2026,ahead of the City's deadline to submit the Draft WQT Plan to DEQ by March 1,2026. D) Final Draft WQT Plan incorporating DEQ input provided to the City by June 30,2026. E) Final WQT Plan incorporating public comments provided to the City within 30 days of receiving all comments. Scope of Work-Phase 3: Flow Augmentation Water Quality Trading Plan 6 Schedule The following schedule is estimated for work on Phase 3,assuming a Notice to Proceed for Phase 3 is issued on or before March 1,2025. Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Phase 1:Feasibility Study Mar2023- Phase 2:Thermal Benefit Jun 2024 Analysis Mar 2024-Jun 2025 Phase 3:WQT Plan Mar 2025-Dec 2026 Development 7 Estimated Budget The Consulting Team will perform work on a time and materials basis.The not-to-exceed budget for Phase 3 is $167,642.A detailed breakdown of hours, labor costs,expenses,and total cost by task is provided in the attached Exhibit A. Who to Contact for Next Steps The Freshwater Trust appreciates the City's interest and review. Please direct questions,comments,and additions to: Tim Wigington Olivia Duren VP Finance&Policy Restoration Program Manager The Freshwater Trust The Freshwater Trust tim@thefreshwatertrust.org olivia@thefreshwater.org 503.222.9091 x41 503.222.9091 x51 Scope of Work-Phase 3:Flow Augmentation Water Quality Trading Plan 8 Exhibit -Phase 3 budget breakdown of hours,labor costs,expenses,and total cost by task tity of Ashland Ffiow Augme:ntzW,,water0-111y Trading MV for Exc The .T Load Level of effort and Budget ExhibitA s-pi.w. r, DIM.D.— Ti­­­� eh—Th.— 1y� p Heat aaa�sm ammra haurmuaah 'ar o-�a"" e15� aw. otn�e E.per,,aea Tata coat -1 Manager Pa aeye� Pol'[ry5pee'.al'st H'yd,.Igist Da'[a5:'entist aaakk Resau ce.z Water Re.saurtesE Resource'. 3peca st Wu m pgist ase lMar xn'!5-Fen xnx5h.9x mwl $96q $lata 592s $9sq 596a $aa E5lgser Ee$29Ser 15..a Em It, 59sgef $2sa E 5'!!q Phwaes Rate�lnna.xox6-Der xoxsT.na mel $960 $aaa $9.]s $2so $96a $aa 5aoa $3m $2. $12. - „n fase�ma smysm�apaieatlPnaaas.raxepe.Haaap 5D 50 5ae,a2a ft W4T Pllm fazzume.Mart.111P 2�P26:ratezl 4 4 Impleman2an'anyual[y stantlartlz,pertprman¢ec'.rlterld,verliicatlan approach 3 E a '8 235 3 3 8 3 i. ! rare nor Y W4i Rules Atlap ra[atlure. 8 E 8 5 2 2 B is ra tavygTeFinantp Ilpaatetl DraitW4i Plan $D $ra $76,373 1Q95N3-IFinaI WJpTIRfanandlOepuiaropy'SUIpMatl zzume Mar2WUR5'D[]4135 ra¢ez7 .Insist Ci'ey'[are.zplveDEq camments'[a¢reatefinal Drah VJgT Plan far Rubllt.re'wie'rr 8 4 ]6 8 B 4 is reso is cnmmen s ocrea a ina'WqT Pf an DHD:�mwral�a[�.o�a maeH�ga $9, 59,a44 50 536,o3a d-O,peranowE6wppprt[aszuma':Mar 2.@].S-Pe.¢2.D3a:rains; i once ietin�o-Hset Betio p o excess WTPaperat[anal atljustments 3 pl ann ngsuppart x '© 3 5 8 x $D $o $9s,322 5oa.soo 52.— Sx9 5'x�x.m 5o. 5a,soo issfzas 52,aoo 5s4s'66 Sa.Sso 5x.s aaa So.sSo axn 5tl,aaa So 5ns2,c¢2. Budget by Biennium through Jun 30,2025 Jull,2025-Jun30,2027 Phase 3 Budget Portion $ 416,448 5 121,193 of Budget 28% 72 Fm a Time 18% 82 Fm Scopeof Work—Phase3:Flow Augmentation Water Quality Tradmg Plan 9 7TE(MM/DD/YYYY) A CERTIFICATE OF LIABILITY INSURANCE /10/2025 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 Justworks Customer Success NAME: Doug Jones(Justworks) p/COE NNo Ext: (888)534-1711 a/c No: c/o Artex Risk Solutions, Inc. EMAIL P.O. Box 13838 ADDRESS: support@justworks.com Scottsdale,AZ 85267 INSURER(S)AFFORDING COVERAGE NAIC# INSURERA: American Zurich Insurance Company 40142 INSURED INSURER B: Justworks Employment Group LLC Labor Contractor,for co-employees of:THE FRESHWATER TRUST INSURER C: PO Box 7119 Church Street Station INSURER D: New York,NY 10008-7119 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER:24NY0171238515 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 CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE 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 ADDL SUBR POLICY EFF POLICY EXP LIMITS LTR INSD WVD POLICY NUMBER MM/DD/YWY MM/DD/YWY COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ DAMAGE TO RENTED CLAIMS-MADE OCCUR PREMISES Ea occurrrence $ MED EXP(Any one person) $ PERSONAL&ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ POLICY ❑ PRO- ❑ JECT LOC PRODUCTS-COMP/OP AGG $ OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ Ea accident ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION X PER OTH- AND EMPLOYERS'LIABILITY Y/N STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ 2,000,000 A OFFICER/MEMBER EXCLUDED? ❑ N/A WC 17-93-047-00 01/01/2025 06/01/2025 (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 2,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ 2,000,000 Location Coverage Period: 01/01/2025 06/01/2025 Client# 169634-OR DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) THE FRESHWATER TRUST Coverage is provided for 1120 SE Madison Street only those co-employees of,but not subcontractors Portland, OR 97214 to: CERTIFICATE HOLDER CANCELLATION THE FRESHWATER TRUST SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE 1120 SE Madison Street THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Portland, OR 97214 ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE @ 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016103) The ACORD name and loao are reaistered marks of ACORD DATE(MM/DD/YYYY) ACCOR" CERTIFICATE OF LIABILITY INSURANCE 4/16/2025 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 NAME: Melissa Hall Durham and Bates Insurance PHONE FAX 1211 SW 5th Ave. A/C No Ext: 503-224-5170 A/C,No):503-542-0660 Ste 2800 ADMDRESS: certs@dbates.com Portland OR 97204 INSURER(S)AFFORDING COVERAGE NAIC# INSURERA:Admiral Insurance Co 24856 INSURED INSURERB: Ohio Security Insurance Company 24082 The Freshwater Trust P.O. Box 9205 INSURERC: Portland OR 97207 INSURER D7 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER:529821286 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 CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE 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 ADDL SUBR POLICY EFF POLICY EXP LIMITS LTR INSD WVD POLICY NUMBER MMIDD/YYY MMIDD/YYY A X COMMERCIAL GENERAL LIABILITY FEI-ECC-13456-12 3/1/2025 3/1/2026 EACH OCCURRENCE $2,000,000 CLAIMS-MADE � OCCUR DAMAGE TO RENTED PREMISES Ea occurrence) $300,000 MED EXP(Any one person) $5,000 PERSONAL&ADV INJURY $2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $2,000,000 POLICY❑ PRO ❑ JECT LOC PRODUCTS-COMP/OP AGG $2,000,000 X OTHER: $ B AUTOMOBILE LIABILITY BAS56761929 3/1/2025 3/1/2026 COMBINED SINGLE LIMIT $1,000,000 Ea accident X ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS X HIRED X NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident A UMBRELLA LAB X OCCUR FEI-EXS-13457-12 3/1/2025 3/1/2026 EACH OCCURRENCE $4,000,000 X EXCESS LAB CLAIMS-MADE AGGREGATE $4,000,000 DED RETENTION$ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY Y/N STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE ❑ E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ A Professional Liab FEI-ECC-13456-12 3/1/2025 3/1/2026 General Aggregate 1,000,000 Retro:3/01/2012 Ded Per Wrongful Act 25,000 Claims-Made DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,maybe attached if more space is required) Excess Policy sits over General Liability, Professional Liability,and Auto Liability. For Additional Insured with respects to General Liability and Auto Liability, refer to attached coverage forms. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. City of Ashland 20 East Main Street AUTHORIZED REPRESENTATIVE Ashland OR 97520 @ 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD COMMERCIAL AUTO AC 85 01 06 18 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS AUTO COVERAGE ENHANCEMENT ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to coverage afforded by this endorsement, the provisions of the policy apply unless modified by the endorsement. If the policy to which this endorsement is attached also contains a Business Auto Coverage Enhancement Endorsement with a specific state named in the title, this endorsement does not apply to vehicles garaged in that specified state. COVERAGEINDEX SUBJECT PROVISION NUMBER ACCIDENTAL AIRBAG DEPLOYMENT 13 o ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT 4 AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS 21 AMENDED FELLOW EMPLOYEE EXCLUSION 6 AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE 15 BODILY INJURY REDEFINED 25 EMPLOYEES AS INSUREDS (Including Employee Hired Auto) 3 EXTRA EXPENSE - BROADENED COVERAGE 11 " GLASS REPAIR- WAIVER OF DEDUCTIBLE 17 HIRED AUTO COVERAGE TERRITORY 23 HIRED AUTO PHYSICAL DAMAGE (Including Employee Hired Auto) 7 LOAN / LEASE GAP (Coverage Not Available In New York) 16 NEWLY FORMED OR ACQUIRED SUBSIDIARIES 2 PARKED AUTO COLLISION COVERAGE(WAIVER OF DEDUCTIBLE) 18 PERSONAL EFFECTSCOVERAGE 12 PHYSICAL DAMAGE -ADDITIONAL TRANSPORTATION EXPENSE COVERAGE 9 PHYSICAL DAMAGE DEDUCTIBLE -VEHICLE TRACKING SYSTEM 14 PRIMARY AND NON-CONTRIBUTORY -WRITTEN CONTRACT OR WRITTEN AGREEMENT 24 RENTAL REIMBURSEMENT 10 SUPPLEMENTARY PAYMENTS 5 TOWING AND LABOR 8 TRAILERS - INCREASED LOAD CAPACITY 1 TWO OR MORE DEDUCTIBLES 19 UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS 20 WAIVER OF TRANSFER OF RIGHTS OF RECOVERYAGAINST OTHERS TO US 22 M SECTION I -COVERED AUTOS is amended as follows: 1. TRAILERS -INCREASED LOAD CAPACITY The following replaces Paragraph C.1. Certain Trailers, Mobile Equipment And Temporary Substitute Autos of SECTION I -COVERED AUTOS: "Trailers" with a load capacity of 3,000 pounds or less designed primarily for travel on public roads. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 1 of 7 SECTION II -LIABILITY COVERAGE is amended as follows: 2. NEWLY FORMED OR ACQUIRED SUBSIDIARIES SECTION II - LIABILITY COVERAGE, Paragraph A.1. - Who Is An Insured is amended to include the following as an "insured": d. Any legally incorporated subsidiary of which you own more than 50 percent interest during the policy period. Coverage is afforded only for 90 days from the date of acquisition or formation. However, "insured" does not include any organization that: (1) Is a partnership or joint venture; or (2) Is an "insured" under any other automobile policy except a policy written specificall y to apply in excess of this policy; or (3) Has exhausted its Limit of Insurance or had its policy terminated under any other automobile policy. Coverage under this provision d. does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization. 3. EMPLOYEES AS INSUREDS SECTION II - LIABILITY COVERAGE, Paragraph A.1. Who Is An Insured is amended to include the following as an "insured": e. Any "employee" of yours while using a covered "auto" you do not own, hire or borrow but only for acts within the scope of their employment by you. Insurance provided by this endorsement is excess over any other insurance available to any "employee". f. Any "employee" of yours while operating an "auto" hired or borrowed under a written contract or agreement in that "employee's" name, with your permission, while performing duties related to the conduct of your business and within the scope of their employment. Insurance provided by this endorsement is excess over any other insurance available to the "employee". 4. ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT SECTION II - LIABILITY COVERAGE, Paragraph A.1. Who Is An Insured is amended to include the following as an "insured": g. Any person or organization with respect to the operation, maintenance or use of a covered "auto", provided that you and such person or organization have agreed in a written contract, written agreement, or permit issued to you by governmental or public authority, to add such person, or organization, or governmental or public authority to this policy as an "insured". However, such person or organization is an "insured": (1) Only with respect to the operation, maintenance or use of a covered "auto"; (2) Only for "bodily injury" or "property damage" caused by an "accident" which takes place after you executed the written contract or written agreement, or the permit has been issued to you; and o (3) Only for the duration of that contract, agreement or permit. The "insured" is required to submit a claim to any other insurer to which coverage could apply for defense and indemnity. Unless the "insured" has agreed in writing to primary noncontributory wording per enhancement number 24, this policy is excess over any other collectible insurance. M 5. SUPPLEMENTARY PAYMENTS SECTION II - LIABILITY COVERAGE, Coverage Extensions, 2.a. Supplementary Payments, Paragraphs (2) and (4) are replaced by the following: (2) Up to $3,000 for cost of bail bonds (including bonds for related traffic violations ) required because of an "accident" we cover. We do not have to furnish these bonds. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $500 a day because of time off from work. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 2 of 7 6. AMENDED FELLOW EMPLOYEE EXCLUSION In those jurisdictions where, by law, fellow "employees" are not entitled to the protection afforded to the employer by the workers compensation exclusivity rule, or similar protection, the following provi- sion is added: SECTION II - LIABILITY, Exclusion B.5. Fellow Employee does not apply if the "bodily injury" results from the use of a covered "auto" you own or hire if you have workers compensation insurance in force for all of your "employees" at the time of "loss". This coverage is excess over any other collectible insurance. SECTION III -PHYSICAL DAMAGE COVERAGE is amended as follows: 7. HIRED AUTO PHYSICAL DAMAGE Paragraph A.4. Coverage Extensions of SECTION III - PHYSICAL DAMAGE COVERAGE, is amended by adding the following: If hired "autos" are covered "autos" for Liability Coverage, and if Comprehensive, Specified Causes of Loss or Collision coverage are provided under the Business Auto Coverage Form for any "auto" you own, then the Physical Damage coverages provided are extended to "autos": a. You hire, rent or borrow; or b. Your "employee" hires or rents under a written contract or agreement in that "employee's" name, but only if the damage occurs while the vehicle is being used in the conduct of your business, subject to the following limit and deductible: a. The most we will pay for "loss" in any one "accident" or "loss" is the smallest of: (1) $50,000; or (2) The actual cash value of the damaged or stolen property as of the time of the "loss"; or (3) The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality, minus a deductible. b. The deductible will be equal to the largest deductible applicable to any owned "auto" for that coverage. c. Subject to the limit, deductible and excess provisions described in this provision, we will provide coverage equal to the broadest coverage applicable to any covered "auto" you own. d. Subject to a maximum of $1,000 per "accident", we will also cover the actual loss of use of the hired "auto" if it results from an "accident", you are legally liable and the lessor incurs an actual financial loss. e. This coverage extension does not apply to: (1) Any "auto" that is hired, rented or borrowed with a driver; or (2) Any "auto" that is hired, rented or borrowed from your "employee" or any member of your "employee's" household. Coverage provided under this extension is excess over any other collectible insurance available at the time of "loss". 8. TOWING AND LABOR M SECTION III - PHYSICAL DAMAGE COVERAGE, Paragraph A.2. Towing, is amended by the addition of the following: We will pay towing and labor costs incurred, up to the limits shown below, each time a covered "auto" classified and rated as a private passenger type, "light truck" or "medium truck" is disabled: a. For private passenger type vehicles, we will pay up to $75 per disablement. b. For "light trucks", we will pay up to $75 per disablement. "Light trucks" are trucks that have a gross vehicle weight (GVW) of 10,000 pounds or less. c. For "medium trucks" , we will pay up to $150 per disablement. "Medium trucks" are trucks that have a gross vehicle weight (GVW) of 10,001 -20,000 pounds. However, the labor must be performed at the place of disablement. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 3 of 7 9. PHYSICAL DAMAGE -ADDITIONAL TRANSPORTATION EXPENSE COVERAGE Paragraph A.4.a. Coverage Extensions, Transportation Expenses of SECTION III - PHYSICAL DAMAGE COVERAGE, is amended to provide a limit of$50 per day and a maximum limit of$1,500. 10. RENTAL REIMBURSEMENT SECTION III -PHYSICAL DAMAGE COVERAGE, A. Coverage, is amended by adding the following: a. We will pay up to $75 per day for rental reimbursement expenses incurred by you for the rental of an "auto" because of "accident" or "loss", to an "auto" for which we also pay a "loss" under Comprehensive, Specified Causes of Loss or Collision Coverages. We will pay only for those ex- penses incurred after the first 24 hours following the "accident" or "loss" to the covered "auto." b. Rental Reimbursement requires the rental of a comparable or lessor vehicle, which in many cases may be substantially less than $75 per day, and will only be allowed for the period of time it should take to repair or replace the vehicle with reasonable speed and similar quality, up to a maximum of 30 days. c. We will also pay up to $500 for reasonable and necessary expenses incurred by you to remove and replace your tools and equipment from the covered "auto". This limit is excess over any other collectible insurance. d. This coverage does not apply unless you have a business necessity that other "autos" available for your use and operation cannot fill. e. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided under Paragraph 4. Coverage Extension. f. No deductible applies to this coverage. g. The insurance provided under this extension is excess over any other collectible insurance. If this policy also provides Rental Reimbursement Coverage you purchased, the coverage provided by this Enhancement Endorsement is in addition to the coverage you purchased. For the purposes of this endorsement provision, materials and equipment do not include "personal effects" as defined in provision 12.B. 11. EXTRA EXPENSE -BROADENED COVERAGE Under SECTION III - PHYSICAL DAMAGE COVERAGE, A. Coverage, we will pay for the expense of returning a stolen covered "auto" to you. The maximum amount we will pay is $1,000. 12. PERSONAL EFFECTS COVERAGE A. SECTION III -PHYSICAL DAMAGE COVERAGE, A. Coverage, is amended by adding the following: If you have purchased Comprehensive Coverage on this policy for an "auto" you own and that "auto" is stolen, we will pay, without application of a deductible, up to $600 for "personal effects" stolen with the "auto." o The insurance provided under this provision is excess over any other collectible insurance. B. SECTION V -DEFINITIONS is amended by adding the following: For the purposes of this provision, "personal effects" mean tangible property that is worn or carried by an "insured." "Personal effects" does not include tools, equipment, jewelry, money or securi- o ties. 13. ACCIDENTAL AIRBAG DEPLOYMENT SECTION III -PHYSICAL DAMAGE COVERAGE, B. Exclusions is amended by adding the following: If you have purchased Comprehensive or Collision Coverage under this policy, the exclusion for "loss" relating to mechanical breakdown does not apply to the accidental discharge of an airbag. Any insurance we provide shall be excess over any other collectible insurance or reimbursement by manufacturer's warranty. However, we agree to pay any deductible applicable to the other coverage or warranty. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 4 of 7 14. PHYSICAL DAMAGE DEDUCTIBLE -VEHICLE TRACKING SYSTEM SECTION III -PHYSICAL DAMAGE COVERAGE, D. Deductible, is amended by adding the following: Any Comprehensive Deductible shown in the Declarations will be reduced by 50% for any "loss" caused by theft if the vehicle is equipped with a vehicle tracking device such as a radio tracking device or a global position device and that device was the method of recovery of the vehicle. 15. AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE SECTION III - PHYSICAL DAMAGE COVERAGE, B. Exclusions, Paragraph a. of the exception to exclu- sions 4.c. and 4.d. is deleted and replaced with the following: Exclusions 4.c. and 4.d. do not apply to: a. Electronic equipment that receives or transmits audio, visual or data signals, whether or not de- signed solely for the reproduction of sound, if the equipment is: (1) Permanently installed in the covered "auto" at the time of the "loss" or removable from a housing unit that is permanently installed in the covered "auto"; and (2) Designed to be solely operated by use from the power from the "auto's" electrical system; and (3) Physical damage coverages are provided for the covered "auto". If the "loss" occurs solely to audio, visual or data electronic equipment or accessories used with this equipment, then our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by a$100 deductible. 16. LOAN / LEASE GAP COVERAGE (Not Applicable In New York) A. Paragraph C. Limit Of Insurance of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by adding the following: The most we will pay for a "total loss" to a covered "auto" owned by or leased to you in any one "accident" is the greater of the: 1. Balance due under the terms of the loan or lease to which the damaged covered "auto" is subject at the time of the "loss" less the amount of: a. Overdue payments and financial penalties associated with those payments as of the date of the "loss"; b. Financial penalties imposed under a lease due to high mileage, excessive use or abnormal wear and tear; c. Costs for extended warranties, Credit Life Insurance, Health, Accident or Disability Insur- ance purchased with the loan or lease; d. Transfer or rollover balances from previous loans or leases; e. Final payment due under a "Balloon Loan'; f. The dollar amount of any unrepaired damage which occurred prior to the "total loss" of a covered "auto"; g. Security deposits not refunded by a lessor; h. All refunds payable or paid to you as a result of the early termination of a lease agreement or as a result of the early termination of any warranty or extended service agreement on a covered "auto"; i. Any amount representing taxes; j. Loan or lease termination fees; or 2. The actual cash value of the damage or stolen property as of the time of the "loss". An adjustment for depreciation and physical condition will be made in determining the actual cash value at the time of the "loss". This adjustment is not applicable in Texas. B. Additional Conditions This coverage applies only to the original loan for which the covered "auto" that incurred the "loss" serves as collateral, or lease written on the covered "auto" that incurred the "loss". © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 5 of 7 C. SECTION V -DEFINITIONS is changed by adding the following: As used in this endorsement provision, the following definitions apply: "Total loss" means a 'loss" in which the cost of repairs plus the salvage value exceeds the actual cash value. A "balloon loan" is one with periodic payments that are insufficient to repay the balance over the term of the loan, thereby requiring a large final payment. 17. GLASS REPAIR-WAIVER OF DEDUCTIBLE Paragraph D. Deductible of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following: No deductible applies to glass damage if the glass is repaired rather than replaced. 18. PARKEDAUTO COLLISION COVERAGE (WAIVER OF DEDUCTIBLE) Paragraph D. Deductible of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following: The deductible does not apply to 'loss" caused by collision to such covered "auto" of the private passenger type or light weight truck with a gross vehicle weight of 10,000 lbs. or less as defined by the manufacturer as maximum loaded weight the "auto" is designed to carry while it is: a. In the charge of an "insured"; b. Legally parked; and c. Unoccupied. The 'loss" must be reported to the police authorities within 24 hours of known damage. The total amount of the damage to the covered "auto" must exceed the deductible shown in the Declarations. This provision does not apply to any 'loss" if the covered "auto" is in the charge of any person or organization engaged in the automobile business. 19. TWO OR MORE DEDUCTIBLES Under SECTION III - PHYSICAL DAMAGE COVERAGE, if two or more company policies or coverage forms apply to the same "accident", the following applies to Paragraph D. Deductible: a. If the applicable Business Auto deductible is the smaller (or smallest) deductible, it will be waived; or b. If the applicable Business Auto deductible is not the smaller (or smallest) deductible , it will be reduced by the amount of the smaller (or smallest) deductible; or c. If the 'loss" involves two or more Business Auto coverage forms or policies, the smaller (or smallest) deductible will be waived. For the purpose of this endorsement, company means any company that is part of the Liberty Mutual o Group. SECTION IV -BUSINESS AUTO CONDITIONS is amended as follows: 20. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS SECTION IV- BUSINESS AUTO CONDITIONS, Paragraph B.2. is amended by adding the following: If you unintentionally fail to disclose any hazards, exposures or material facts existing as of the incep- tion date or renewal date of the Business Auto Coverage Form, the coverage afforded by this policy will not be prejudiced. However, you must report the undisclosed hazard of exposure as soon as practicable after its discovery, and we have the right to collect additional premium for any such hazard or exposure. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 6 of 7 21. AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT, OR LOSS SECTION IV - BUSINESS AUTO CONDITIONS, Paragraph A.2.a. is replaced in its entirety by the follow- ing: a. In the event of"accident", claim, "suit" or "loss", you must promptly notify us when it is known to: (1) You, if you are an individual; (2) A partner, if you are a partnership; (3) Member, if you are a limited liability company; (4) An executive officer or the "employee" designated by the Named Insured to give such notice, if you are a corporation. To the extent possible, notice to us should include: (a) How, when and where the "accident" or "loss" took place; (b) The "insureds" name and address; and (c) The names and addresses of any injured persons and witnesses. " 22. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US SECTION IV - BUSINESS AUTO CONDITIONS, Paragraph A.5. Transfer Of Rights Of Recovery Against Others To Us, is amended by the addition of the following: If the person or organization has in a written agreement waived those rights before an "accident" or "loss", our rights are waived also. 23. HIRED AUTO COVERAGE TERRITORY SECTION IV - BUSINESS AUTO CONDITIONS, Paragraph B.7. Policy Period, Coverage Territory, is amended by the addition of the following: f. For "autos" hired 30 days or less, the coverage territory is anywhere in the world, provided that the "insured's" responsibility to pay for damages is determined in a "suit", on the merits, in the United " States, the territories and possessions of the United States of America, Puerto Rico or Canada or in a settlement we agree to. This extension of coverage does not apply to an "auto" hired, leased, rented or borrowed with a driver. 24. PRIMARY AND NON-CONTRIBUTING IF REQUIRED BY WRITTEN CONTRACT OR WRITTEN AGREE- MENT The following is added to SECTION IV - BUSINESS AUTO CONDITIONS, General Conditions, B.5. Other Insurance and supersedes any provision to the contrary: This Coverage Form's Covered Autos Liability Coverage is primary to and will not seek contribution from any other insurance available to an "insured" under your policy provided that: 1. Such "insured" is a Named Insured under such other insurance; and o 2. You have agreed in a written contract or written agreement that this insurance would be primary and would not seek contribution from any other insurance available to such "insured". SECTION V -DEFINITIONS is amended as follows: 25. BODILY INJURY REDEFINED Under SECTION V -DEFINITIONS, Definition C. is replaced by the following: "Bodily injury" means physical injury, sickness or disease sustained by a person, including mental anguish, mental injury, shock, fright or death resulting from any of these at any time. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 7 of 7 The Freshwater Trust Endorsement Number: 15 Additional Insured — Owners, Lessees or Contractors — Scheduled Person or Organization This endorsement, effective 03/01/2024, attaches to and forms a part of Policy Number FEI-ECC-13456-11. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. In consideration of an additional premium of$Applied, this endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location(s) Of Covered Operations Any person(s) or organization(s)whom the Named Those project locations where this Insured agrees, in a written contract, to name as an endorsement is required by additional insured. However, this status exists only for contract. the project specified in that contract. Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II - Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, 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(s) at the location(s) designated above. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. CG 20 10 04 13 © ISO Properties, Inc., 2004 Page 1 of 2 All rights reserved. The Freshwater Trust B. 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: 1. 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 2. 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. C. With respect to the insurance afforded to these additional insureds, the following is added to Section III - Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. CG 20 10 04 13 © ISO Properties, Inc., 2004 Page 2 of 2 All rights reserved. DATE(MM/DD/YYYY) ACCOR" CERTIFICATE OF LIABILITY INSURANCE 4/16/2025 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 NAME: Melissa Hall Durham and Bates Insurance PHONE FAX 1211 SW 5th Ave. A/C No Ext: 503-224-5170 A/C,No):503-542-0660 Ste 2800 ADMDRESS: certs@dbates.com Portland OR 97204 INSURER(S)AFFORDING COVERAGE NAIC# INSURERA:Admiral Insurance Co 24856 INSURED INSURERB: Ohio Security Insurance Company 24082 The Freshwater Trust P.O. Box 9205 INSURERC: Portland OR 97207 INSURER D7 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER:529821286 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 CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE 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 ADDL SUBR POLICY EFF POLICY EXP LIMITS LTR INSD WVD POLICY NUMBER MMIDD/YYY MMIDD/YYY A X COMMERCIAL GENERAL LIABILITY FEI-ECC-13456-12 3/1/2025 3/1/2026 EACH OCCURRENCE $2,000,000 CLAIMS-MADE � OCCUR DAMAGE TO RENTED PREMISES Ea occurrence) $300,000 MED EXP(Any one person) $5,000 PERSONAL&ADV INJURY $2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $2,000,000 POLICY❑ PRO ❑ JECT LOC PRODUCTS-COMP/OP AGG $2,000,000 X OTHER: $ B AUTOMOBILE LIABILITY BAS56761929 3/1/2025 3/1/2026 COMBINED SINGLE LIMIT $1,000,000 Ea accident X ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS X HIRED X NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident A UMBRELLA LAB X OCCUR FEI-EXS-13457-12 3/1/2025 3/1/2026 EACH OCCURRENCE $4,000,000 X EXCESS LAB CLAIMS-MADE AGGREGATE $4,000,000 DED RETENTION$ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY Y/N STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE ❑ E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ A Professional Liab FEI-ECC-13456-12 3/1/2025 3/1/2026 General Aggregate 1,000,000 Retro:3/01/2012 Ded Per Wrongful Act 25,000 Claims-Made DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,maybe attached if more space is required) Excess Policy sits over General Liability, Professional Liability,and Auto Liability. For Additional Insured with respects to General Liability and Auto Liability, refer to attached coverage forms. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. City of Ashland 20 East Main Street AUTHORIZED REPRESENTATIVE Ashland OR 97520 @ 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD COMMERCIAL AUTO AC 85 01 06 18 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS AUTO COVERAGE ENHANCEMENT ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to coverage afforded by this endorsement, the provisions of the policy apply unless modified by the endorsement. If the policy to which this endorsement is attached also contains a Business Auto Coverage Enhancement Endorsement with a specific state named in the title, this endorsement does not apply to vehicles garaged in that specified state. COVERAGEINDEX SUBJECT PROVISION NUMBER ACCIDENTAL AIRBAG DEPLOYMENT 13 o ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT 4 AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS 21 AMENDED FELLOW EMPLOYEE EXCLUSION 6 AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE 15 BODILY INJURY REDEFINED 25 EMPLOYEES AS INSUREDS (Including Employee Hired Auto) 3 EXTRA EXPENSE - BROADENED COVERAGE 11 " GLASS REPAIR- WAIVER OF DEDUCTIBLE 17 HIRED AUTO COVERAGE TERRITORY 23 HIRED AUTO PHYSICAL DAMAGE (Including Employee Hired Auto) 7 LOAN / LEASE GAP (Coverage Not Available In New York) 16 NEWLY FORMED OR ACQUIRED SUBSIDIARIES 2 PARKED AUTO COLLISION COVERAGE(WAIVER OF DEDUCTIBLE) 18 PERSONAL EFFECTSCOVERAGE 12 PHYSICAL DAMAGE -ADDITIONAL TRANSPORTATION EXPENSE COVERAGE 9 PHYSICAL DAMAGE DEDUCTIBLE -VEHICLE TRACKING SYSTEM 14 PRIMARY AND NON-CONTRIBUTORY -WRITTEN CONTRACT OR WRITTEN AGREEMENT 24 RENTAL REIMBURSEMENT 10 SUPPLEMENTARY PAYMENTS 5 TOWING AND LABOR 8 TRAILERS - INCREASED LOAD CAPACITY 1 TWO OR MORE DEDUCTIBLES 19 UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS 20 WAIVER OF TRANSFER OF RIGHTS OF RECOVERYAGAINST OTHERS TO US 22 M SECTION I -COVERED AUTOS is amended as follows: 1. TRAILERS -INCREASED LOAD CAPACITY The following replaces Paragraph C.1. Certain Trailers, Mobile Equipment And Temporary Substitute Autos of SECTION I -COVERED AUTOS: "Trailers" with a load capacity of 3,000 pounds or less designed primarily for travel on public roads. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 1 of 7 SECTION II -LIABILITY COVERAGE is amended as follows: 2. NEWLY FORMED OR ACQUIRED SUBSIDIARIES SECTION II - LIABILITY COVERAGE, Paragraph A.1. - Who Is An Insured is amended to include the following as an "insured": d. Any legally incorporated subsidiary of which you own more than 50 percent interest during the policy period. Coverage is afforded only for 90 days from the date of acquisition or formation. However, "insured" does not include any organization that: (1) Is a partnership or joint venture; or (2) Is an "insured" under any other automobile policy except a policy written specificall y to apply in excess of this policy; or (3) Has exhausted its Limit of Insurance or had its policy terminated under any other automobile policy. Coverage under this provision d. does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization. 3. EMPLOYEES AS INSUREDS SECTION II - LIABILITY COVERAGE, Paragraph A.1. Who Is An Insured is amended to include the following as an "insured": e. Any "employee" of yours while using a covered "auto" you do not own, hire or borrow but only for acts within the scope of their employment by you. Insurance provided by this endorsement is excess over any other insurance available to any "employee". f. Any "employee" of yours while operating an "auto" hired or borrowed under a written contract or agreement in that "employee's" name, with your permission, while performing duties related to the conduct of your business and within the scope of their employment. Insurance provided by this endorsement is excess over any other insurance available to the "employee". 4. ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT SECTION II - LIABILITY COVERAGE, Paragraph A.1. Who Is An Insured is amended to include the following as an "insured": g. Any person or organization with respect to the operation, maintenance or use of a covered "auto", provided that you and such person or organization have agreed in a written contract, written agreement, or permit issued to you by governmental or public authority, to add such person, or organization, or governmental or public authority to this policy as an "insured". However, such person or organization is an "insured": (1) Only with respect to the operation, maintenance or use of a covered "auto"; (2) Only for "bodily injury" or "property damage" caused by an "accident" which takes place after you executed the written contract or written agreement, or the permit has been issued to you; and o (3) Only for the duration of that contract, agreement or permit. The "insured" is required to submit a claim to any other insurer to which coverage could apply for defense and indemnity. Unless the "insured" has agreed in writing to primary noncontributory wording per enhancement number 24, this policy is excess over any other collectible insurance. M 5. SUPPLEMENTARY PAYMENTS SECTION II - LIABILITY COVERAGE, Coverage Extensions, 2.a. Supplementary Payments, Paragraphs (2) and (4) are replaced by the following: (2) Up to $3,000 for cost of bail bonds (including bonds for related traffic violations ) required because of an "accident" we cover. We do not have to furnish these bonds. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $500 a day because of time off from work. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 2 of 7 6. AMENDED FELLOW EMPLOYEE EXCLUSION In those jurisdictions where, by law, fellow "employees" are not entitled to the protection afforded to the employer by the workers compensation exclusivity rule, or similar protection, the following provi- sion is added: SECTION II - LIABILITY, Exclusion B.5. Fellow Employee does not apply if the "bodily injury" results from the use of a covered "auto" you own or hire if you have workers compensation insurance in force for all of your "employees" at the time of "loss". This coverage is excess over any other collectible insurance. SECTION III -PHYSICAL DAMAGE COVERAGE is amended as follows: 7. HIRED AUTO PHYSICAL DAMAGE Paragraph A.4. Coverage Extensions of SECTION III - PHYSICAL DAMAGE COVERAGE, is amended by adding the following: If hired "autos" are covered "autos" for Liability Coverage, and if Comprehensive, Specified Causes of Loss or Collision coverage are provided under the Business Auto Coverage Form for any "auto" you own, then the Physical Damage coverages provided are extended to "autos": a. You hire, rent or borrow; or b. Your "employee" hires or rents under a written contract or agreement in that "employee's" name, but only if the damage occurs while the vehicle is being used in the conduct of your business, subject to the following limit and deductible: a. The most we will pay for "loss" in any one "accident" or "loss" is the smallest of: (1) $50,000; or (2) The actual cash value of the damaged or stolen property as of the time of the "loss"; or (3) The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality, minus a deductible. b. The deductible will be equal to the largest deductible applicable to any owned "auto" for that coverage. c. Subject to the limit, deductible and excess provisions described in this provision, we will provide coverage equal to the broadest coverage applicable to any covered "auto" you own. d. Subject to a maximum of $1,000 per "accident", we will also cover the actual loss of use of the hired "auto" if it results from an "accident", you are legally liable and the lessor incurs an actual financial loss. e. This coverage extension does not apply to: (1) Any "auto" that is hired, rented or borrowed with a driver; or (2) Any "auto" that is hired, rented or borrowed from your "employee" or any member of your "employee's" household. Coverage provided under this extension is excess over any other collectible insurance available at the time of "loss". 8. TOWING AND LABOR M SECTION III - PHYSICAL DAMAGE COVERAGE, Paragraph A.2. Towing, is amended by the addition of the following: We will pay towing and labor costs incurred, up to the limits shown below, each time a covered "auto" classified and rated as a private passenger type, "light truck" or "medium truck" is disabled: a. For private passenger type vehicles, we will pay up to $75 per disablement. b. For "light trucks", we will pay up to $75 per disablement. "Light trucks" are trucks that have a gross vehicle weight (GVW) of 10,000 pounds or less. c. For "medium trucks" , we will pay up to $150 per disablement. "Medium trucks" are trucks that have a gross vehicle weight (GVW) of 10,001 -20,000 pounds. However, the labor must be performed at the place of disablement. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 3 of 7 9. PHYSICAL DAMAGE -ADDITIONAL TRANSPORTATION EXPENSE COVERAGE Paragraph A.4.a. Coverage Extensions, Transportation Expenses of SECTION III - PHYSICAL DAMAGE COVERAGE, is amended to provide a limit of$50 per day and a maximum limit of$1,500. 10. RENTAL REIMBURSEMENT SECTION III -PHYSICAL DAMAGE COVERAGE, A. Coverage, is amended by adding the following: a. We will pay up to $75 per day for rental reimbursement expenses incurred by you for the rental of an "auto" because of "accident" or "loss", to an "auto" for which we also pay a "loss" under Comprehensive, Specified Causes of Loss or Collision Coverages. We will pay only for those ex- penses incurred after the first 24 hours following the "accident" or "loss" to the covered "auto." b. Rental Reimbursement requires the rental of a comparable or lessor vehicle, which in many cases may be substantially less than $75 per day, and will only be allowed for the period of time it should take to repair or replace the vehicle with reasonable speed and similar quality, up to a maximum of 30 days. c. We will also pay up to $500 for reasonable and necessary expenses incurred by you to remove and replace your tools and equipment from the covered "auto". This limit is excess over any other collectible insurance. d. This coverage does not apply unless you have a business necessity that other "autos" available for your use and operation cannot fill. e. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided under Paragraph 4. Coverage Extension. f. No deductible applies to this coverage. g. The insurance provided under this extension is excess over any other collectible insurance. If this policy also provides Rental Reimbursement Coverage you purchased, the coverage provided by this Enhancement Endorsement is in addition to the coverage you purchased. For the purposes of this endorsement provision, materials and equipment do not include "personal effects" as defined in provision 12.B. 11. EXTRA EXPENSE -BROADENED COVERAGE Under SECTION III - PHYSICAL DAMAGE COVERAGE, A. Coverage, we will pay for the expense of returning a stolen covered "auto" to you. The maximum amount we will pay is $1,000. 12. PERSONAL EFFECTS COVERAGE A. SECTION III -PHYSICAL DAMAGE COVERAGE, A. Coverage, is amended by adding the following: If you have purchased Comprehensive Coverage on this policy for an "auto" you own and that "auto" is stolen, we will pay, without application of a deductible, up to $600 for "personal effects" stolen with the "auto." o The insurance provided under this provision is excess over any other collectible insurance. B. SECTION V -DEFINITIONS is amended by adding the following: For the purposes of this provision, "personal effects" mean tangible property that is worn or carried by an "insured." "Personal effects" does not include tools, equipment, jewelry, money or securi- o ties. 13. ACCIDENTAL AIRBAG DEPLOYMENT SECTION III -PHYSICAL DAMAGE COVERAGE, B. Exclusions is amended by adding the following: If you have purchased Comprehensive or Collision Coverage under this policy, the exclusion for "loss" relating to mechanical breakdown does not apply to the accidental discharge of an airbag. Any insurance we provide shall be excess over any other collectible insurance or reimbursement by manufacturer's warranty. However, we agree to pay any deductible applicable to the other coverage or warranty. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 4 of 7 14. PHYSICAL DAMAGE DEDUCTIBLE -VEHICLE TRACKING SYSTEM SECTION III -PHYSICAL DAMAGE COVERAGE, D. Deductible, is amended by adding the following: Any Comprehensive Deductible shown in the Declarations will be reduced by 50% for any "loss" caused by theft if the vehicle is equipped with a vehicle tracking device such as a radio tracking device or a global position device and that device was the method of recovery of the vehicle. 15. AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE SECTION III - PHYSICAL DAMAGE COVERAGE, B. Exclusions, Paragraph a. of the exception to exclu- sions 4.c. and 4.d. is deleted and replaced with the following: Exclusions 4.c. and 4.d. do not apply to: a. Electronic equipment that receives or transmits audio, visual or data signals, whether or not de- signed solely for the reproduction of sound, if the equipment is: (1) Permanently installed in the covered "auto" at the time of the "loss" or removable from a housing unit that is permanently installed in the covered "auto"; and (2) Designed to be solely operated by use from the power from the "auto's" electrical system; and (3) Physical damage coverages are provided for the covered "auto". If the "loss" occurs solely to audio, visual or data electronic equipment or accessories used with this equipment, then our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by a$100 deductible. 16. LOAN / LEASE GAP COVERAGE (Not Applicable In New York) A. Paragraph C. Limit Of Insurance of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by adding the following: The most we will pay for a "total loss" to a covered "auto" owned by or leased to you in any one "accident" is the greater of the: 1. Balance due under the terms of the loan or lease to which the damaged covered "auto" is subject at the time of the "loss" less the amount of: a. Overdue payments and financial penalties associated with those payments as of the date of the "loss"; b. Financial penalties imposed under a lease due to high mileage, excessive use or abnormal wear and tear; c. Costs for extended warranties, Credit Life Insurance, Health, Accident or Disability Insur- ance purchased with the loan or lease; d. Transfer or rollover balances from previous loans or leases; e. Final payment due under a "Balloon Loan'; f. The dollar amount of any unrepaired damage which occurred prior to the "total loss" of a covered "auto"; g. Security deposits not refunded by a lessor; h. All refunds payable or paid to you as a result of the early termination of a lease agreement or as a result of the early termination of any warranty or extended service agreement on a covered "auto"; i. Any amount representing taxes; j. Loan or lease termination fees; or 2. The actual cash value of the damage or stolen property as of the time of the "loss". An adjustment for depreciation and physical condition will be made in determining the actual cash value at the time of the "loss". This adjustment is not applicable in Texas. B. Additional Conditions This coverage applies only to the original loan for which the covered "auto" that incurred the "loss" serves as collateral, or lease written on the covered "auto" that incurred the "loss". © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 5 of 7 C. SECTION V -DEFINITIONS is changed by adding the following: As used in this endorsement provision, the following definitions apply: "Total loss" means a 'loss" in which the cost of repairs plus the salvage value exceeds the actual cash value. A "balloon loan" is one with periodic payments that are insufficient to repay the balance over the term of the loan, thereby requiring a large final payment. 17. GLASS REPAIR-WAIVER OF DEDUCTIBLE Paragraph D. Deductible of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following: No deductible applies to glass damage if the glass is repaired rather than replaced. 18. PARKEDAUTO COLLISION COVERAGE (WAIVER OF DEDUCTIBLE) Paragraph D. Deductible of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following: The deductible does not apply to 'loss" caused by collision to such covered "auto" of the private passenger type or light weight truck with a gross vehicle weight of 10,000 lbs. or less as defined by the manufacturer as maximum loaded weight the "auto" is designed to carry while it is: a. In the charge of an "insured"; b. Legally parked; and c. Unoccupied. The 'loss" must be reported to the police authorities within 24 hours of known damage. The total amount of the damage to the covered "auto" must exceed the deductible shown in the Declarations. This provision does not apply to any 'loss" if the covered "auto" is in the charge of any person or organization engaged in the automobile business. 19. TWO OR MORE DEDUCTIBLES Under SECTION III - PHYSICAL DAMAGE COVERAGE, if two or more company policies or coverage forms apply to the same "accident", the following applies to Paragraph D. Deductible: a. If the applicable Business Auto deductible is the smaller (or smallest) deductible, it will be waived; or b. If the applicable Business Auto deductible is not the smaller (or smallest) deductible , it will be reduced by the amount of the smaller (or smallest) deductible; or c. If the 'loss" involves two or more Business Auto coverage forms or policies, the smaller (or smallest) deductible will be waived. For the purpose of this endorsement, company means any company that is part of the Liberty Mutual o Group. SECTION IV -BUSINESS AUTO CONDITIONS is amended as follows: 20. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS SECTION IV- BUSINESS AUTO CONDITIONS, Paragraph B.2. is amended by adding the following: If you unintentionally fail to disclose any hazards, exposures or material facts existing as of the incep- tion date or renewal date of the Business Auto Coverage Form, the coverage afforded by this policy will not be prejudiced. However, you must report the undisclosed hazard of exposure as soon as practicable after its discovery, and we have the right to collect additional premium for any such hazard or exposure. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 6 of 7 21. AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT, OR LOSS SECTION IV - BUSINESS AUTO CONDITIONS, Paragraph A.2.a. is replaced in its entirety by the follow- ing: a. In the event of"accident", claim, "suit" or "loss", you must promptly notify us when it is known to: (1) You, if you are an individual; (2) A partner, if you are a partnership; (3) Member, if you are a limited liability company; (4) An executive officer or the "employee" designated by the Named Insured to give such notice, if you are a corporation. To the extent possible, notice to us should include: (a) How, when and where the "accident" or "loss" took place; (b) The "insureds" name and address; and (c) The names and addresses of any injured persons and witnesses. " 22. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US SECTION IV - BUSINESS AUTO CONDITIONS, Paragraph A.5. Transfer Of Rights Of Recovery Against Others To Us, is amended by the addition of the following: If the person or organization has in a written agreement waived those rights before an "accident" or "loss", our rights are waived also. 23. HIRED AUTO COVERAGE TERRITORY SECTION IV - BUSINESS AUTO CONDITIONS, Paragraph B.7. Policy Period, Coverage Territory, is amended by the addition of the following: f. For "autos" hired 30 days or less, the coverage territory is anywhere in the world, provided that the "insured's" responsibility to pay for damages is determined in a "suit", on the merits, in the United " States, the territories and possessions of the United States of America, Puerto Rico or Canada or in a settlement we agree to. This extension of coverage does not apply to an "auto" hired, leased, rented or borrowed with a driver. 24. PRIMARY AND NON-CONTRIBUTING IF REQUIRED BY WRITTEN CONTRACT OR WRITTEN AGREE- MENT The following is added to SECTION IV - BUSINESS AUTO CONDITIONS, General Conditions, B.5. Other Insurance and supersedes any provision to the contrary: This Coverage Form's Covered Autos Liability Coverage is primary to and will not seek contribution from any other insurance available to an "insured" under your policy provided that: 1. Such "insured" is a Named Insured under such other insurance; and o 2. You have agreed in a written contract or written agreement that this insurance would be primary and would not seek contribution from any other insurance available to such "insured". SECTION V -DEFINITIONS is amended as follows: 25. BODILY INJURY REDEFINED Under SECTION V -DEFINITIONS, Definition C. is replaced by the following: "Bodily injury" means physical injury, sickness or disease sustained by a person, including mental anguish, mental injury, shock, fright or death resulting from any of these at any time. © 2017 Liberty Mutual Insurance AC 85 01 06 18 Includes copyrighted material of Insurance Services Office Inc.,with its Permission. Page 7 of 7 The Freshwater Trust Endorsement Number: 15 Additional Insured — Owners, Lessees or Contractors — Scheduled Person or Organization This endorsement, effective 03/01/2024, attaches to and forms a part of Policy Number FEI-ECC-13456-11. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. In consideration of an additional premium of$Applied, this endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location(s) Of Covered Operations Any person(s) or organization(s)whom the Named Those project locations where this Insured agrees, in a written contract, to name as an endorsement is required by additional insured. However, this status exists only for contract. the project specified in that contract. Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II - Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, 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(s) at the location(s) designated above. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. CG 20 10 04 13 © ISO Properties, Inc., 2004 Page 1 of 2 All rights reserved. The Freshwater Trust B. 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: 1. 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 2. 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. C. With respect to the insurance afforded to these additional insureds, the following is added to Section III - Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. CG 20 10 04 13 © ISO Properties, Inc., 2004 Page 2 of 2 All rights reserved. GOODS AND SERVICES AGREEMENT (GREATER THAN $35,000) CONTRACTOR: The Freshwater Trust ,CITY OF' CONTACT: Tim Wigington AS H LA,N D ADDRESS: PO Box 9205 20 East Main Street Portland, OR 97207 Ashland, Oregon 97520 Telephone: 541/488-5587 PHONE: 503-222-9091 Fax: 541/488-6006 EMAIL: Tim@thefreshwatertrust.org This Goods and Services Agreement (hereinafter "Agreement") is entered into by and between the City of Ashland, an Oregon municipal corporation (hereinafter "City") and The Freshwater Trust, an Oregon nonprofit corporation (hereinafter "Contractor"), for Water Quality Temperature Trading Program Partnership Phase 3A (2025-2031). 1. CONTRACTOR'S OBLIGATIONS 1.1 Provide Water Quality Temperature Trading Program Partnership: Phase 3A (2025-2031) as set forth in the Scope of Work ("Exhibit B"). The Scope of Work and other "SUPPORTING DOCUMENTS" are attached hereto and, by this reference, incorporated herein. Contractor expressly acknowledges that time is of the essence of any completion date set forth in the SUPPORTING DOCUMENTS, and that no waiver or extension of such deadline may be authorized except in the same manner as herein provided for authority to exceed the maximum compensation. The goods and services defined and described in the Scope of Work shall hereinafter be collectively referred to as "Work." 1.2 Contractor shall obtain and maintain during the term of this Agreement and until City's final acceptance of all Work received hereunder, a policy or policies of liability insurance including commercial general liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars)per occurrence for Bodily Injury and Property Damage. 1.2.1 The insurance required in this Article shall include the following coverages: • Comprehensive General or Commercial General Liability, including personal injury, contractual liability, and products/completed operations coverage; • Automobile Liability; and • Workers' Compensation. 1.2.2 Each policy of such insurance shall be on an "occurrence" and not a "claims made" form, and shall: • Name as additional insured "the City of Ashland, Oregon, its officers, agents and employees" with respect to claims arising out of the provision of Work under this Agreement; • Apply to each named and additional named insured as though a separate policy had been issued to each,provided that the policy limits shall not be increased thereby; Page 1 of 8: Goods and Services Agreement between the City of Ashland and The Freshwater Trust • Apply as primary coverage for each additional named insured except to the extent that two or more such policies are intended to "layer" coverage and, taken together, they provide total coverage from the first dollar of liability; • Contractor shall immediately notify the City of any change in insurance coverage; • Contractor shall supply an endorsement naming the City,its officers,employees and agents as additional insureds by the Effective Date of this Agreement; and • Be evidenced by a certificate or certificates of such insurance approved by the City. 1.3 Contractor shall, at its own expense, maintain Worker's Compensation Insurance in compliance with ORS 656.017, which requires subject employers to provide workers' compensation coverage for all of its subject workers. As evidence of the insurance required by this Agreement, the Contractor shall furnish an acceptable insurance certificate prior to commencing any Work. 1.4 Contractor 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 Contractor. Contractor agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. Further, Contractor agrees not to discriminate against a disadvantaged business enterprise,minority-owned business,woman- owned business, a business that a service-disabled veteran owns or an emerging small business enterprise certified under ORS 200.055, in awarding subcontracts as required by ORS 279A.110. 1.5 In all solicitations either by competitive bidding or negotiation made by Contractor for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential subcontractor or supplier shall be notified by the Contractors of the Contractor's obligations under this Agreement and Title VI of the Civil Rights Act of 1964 and other federal nondiscrimination laws. 1.6 Living Wage Requirements: If the amount of this Agreement is $25,335.05 or more, Contractor is required to comply with Chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in that chapter, to all employees performing Work under this Agreement and to any Subcontractor who performs 50% or more of the Work under this Agreement. Contractor is also required to post the notice attached hereto as "Exhibit A"predominantly in areas where it will be seen by all employees. 2. CITY'S OBLIGATIONS 2.1 City shall pay Contractor the sum of $1,298,737 (the "Contract Sum") as provided herein as full compensation for the Work as specified in the SUPPORTING DOCUMENTS. Any subtotals out of this Contract sum associated with future biennia are contingent upon City budgeting and appropriations approval in that biennium. 2.1.1 At least eight(8)months prior to the start of a new City biennium, Contractor will provide the City with an updated budget forecast for the next City biennium budgeting and appropriations cycle. Contractor's budget forecast may include a 15% contingency to be released by the City at the end of each biennium if sufficiently justified by Contractor. 2.1.2 Contractor will adjust its rates on a biannual basis to account for inflation. These adjustments will be based on the Consumer Price Index-All Urban Consumers (CPI-U)for the West Region. There will be no decrease in Contractor's rates in the case of deflation. Page 2 of 8: Goods and Services Agreement between the City of Ashland and The Freshwater Trust 2.1.3 If expenses during a biennium exceed the appropriated amount for that biennium due to inflation, as measured by the CPI-U for the West Region, Contractor will provide notice to the City of necessary adjustments to the Contract. The City will negotiate a Change Order or Scope of Work adjustment to provide appropriate compensation. 2.2 Except as provided in Article 2.1, in no event shall Contractor's total of all compensation and reimbursement under this Agreement exceed the sum of$1,298,737 without express, written approval from the City official whose signature appears below, or such official's successor in office. Contractor expressly acknowledges that no other person has authority to order or authorize additional Work which would cause this maximum sum to be exceeded and that any authorization from the responsible official must be in writing. Contractor further acknowledges that any Work delivered or expenses incurred without authorization as provided herein is done at Contractor's own risk and as a volunteer without expectation of compensation or reimbursement. 2.3 Contractor will invoice the City for Work performed according to the rates listed in Exhibit F, which may be adjusted according to Article 2.1, and for direct and subcontract costs incurred. The City shall pay all invoices within sixty (60) calendar days of the date of any invoice received from Contractor. Contractor shall not submit more than one (1) invoice to the City in any thirty (30) day period. 3. GENERAL PROVISIONS 3.1 This is a non-exclusive Agreement. City is not obligated to procure any specific amount of Work from Contractor and is free to procure similar types of goods and services from other Contractors in its sole discretion. 3.2 Contractor is an independent contractor and not an employee or agent of the City for any purpose. 3.3 Contractor is not entitled to, and expressly waives all claims to City benefits such as health and disability insurance,paid leave, and retirement. 3.4 Contractor shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all persons employed by them, and any assignment or subcontract shall not create any contractual relation between the assignee or subcontractor and the City. 3.5 This Agreement embodies the full and complete understanding of the parties respecting the subject matter hereof. It supersedes all prior agreements,negotiations, and representations between the parties, whether written or oral. 3.6 This Agreement may be amended only by written instrument executed with the same formalities as this Agreement. 3.7 The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 27913.220, 27913.230 and 27913.235. 3.8 This Agreement shall be governed by the laws of the State of Oregon without regard to conflict of laws principles. Exclusive venue for litigation 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. Page 3 of 8: Goods and Services Agreement between the City of Ashland and The Freshwater Trust 3.9 Contractor shall defend, save, hold harmless and indemnify the City and its officers, employees and agents from and against any and all claims,suits,actions,losses,damages,liabilities,costs,and expenses of any nature resulting from, arising out of, or relating to the activities of Contractor or its officers, employees, contractors, or agents under this Agreement. Nothing herein shall be construed to obligate Contractor to indemnify the City against any claims, suits, actions, losses, damages, liabilities, costs, and expenses of any nature attributable to the City's sole negligence or willful misconduct. 3.10 To the fullest extent provided by law, including but not limited to the Oregon Tort Claims Act,the City shall defend, save, hold harmless and indemnify Contractor and its officers, employees and agents from and against any and all claims, suits, actions, losses, damages, liabilities, costs, and expenses of any nature resulting from, arising out of, or relating to the negligence or willful misconduct of the City or its officers, employees, contractors, or agents under this Agreement. Nothing herein shall be construed to obligate the City to indemnify Contractor against any claims, suits, actions, losses, damages, liabilities, costs, and expenses of any nature attributable to the Contractor's sole negligence or willful misconduct. 3.11 Neither party to this Agreement shall hold the other responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the reasonable control of the other or the other's officers, employees or agents (collectively, Force Majeure). If a Force Majeure event occurs that causes or may cause delay or nonperformance, Contractor shall use all commercially reasonable efforts to mitigate the impact of the Force Majeure event, diligently pursue remedial actions within its sole control, and resume performance of its obligations as soon as practicable. Contractor shall, within 30 days, notify the City in writing of the case, anticipated duration or the delay or non-performance and the measures that have been or will be taken to end or minimize the delay or non-performance. Notwithstanding its obligations under this provision, Contractor shall not be liable for the loss of Thermal Credits caused by a Force Majeure event beyond the contributed performance of Work to the degree practicable, and such schedule will be extended for a period reasonably equivalent to the time lost because of the Force Majeure event. The decision to extend any deadline because of a Force Majeure event shall be determined by Contractor in its reasonable discretion, and Contractor will cooperate in good faith with the City when determining if such an extension is necessary. 3.12 If any provision of this Agreement is found by a court of competent jurisdiction to be unenforceable, such provision shall not affect the other provisions, but such unenforceable provision shall be deemed modified to the extent necessary to render it enforceable, preserving to the fullest extent permitted the intent of Contractor and the City set forth in this Agreement. 3.13 Deliveries will be F.O.B destination. Contractor shall pay all transportation and handling charges for the Goods. Contractor is responsible and liable for loss or damage until final inspection and acceptance of the Goods by the City. Contractor remains liable for latent defects, fraud, and warranties. 3.14 The City may inspect and test the Goods. The City may reject non-conforming Goods and require Contractor to correct them without charge or deliver them at a reduced price, as negotiated. If Contractor does not cure any defects within a reasonable time, the City may reject the Goods and cancel this Agreement in whole or in part. This paragraph does not affect or limit the City's rights, including its rights under the Uniform Commercial Code, ORS Chapter 72 (UCC). 3.15 Contractor represents and warrants that the Goods are new, current, and fully warranted by the manufacturer. Delivered Goods will comply with SUPPORTING DOCUMENTS and be free from defects in labor,material and manufacture. Contractor shall transfer all warranties to the City. Contractor makes no other representation and grants no other warranties, express or implied, and specifically disclaims all representations and warranties of any type not set forth in this Agreement. Page 4 of 8: Goods and Services Agreement between the City of Ashland and The Freshwater Trust 3.16 For purposes of this Agreement "Confidential Information" shall include, but is not limited to (i) information concerning the Disclosing Parry's business methods and practices,personnel, customers, prospective partners, customers, and suppliers; (ii) information concerning inventions, processes, methods, products, know-how, patents, patent applications, intellectual property, and other proprietary rights; (iii) specifications, drawings, models, samples,tools, computer programs,technical information, presentations, and related materials; and(iv) all prepared notes, documents and materials which reflect, interpret, evaluate, include or are derived from Confidential Information. The City and Contractor have shared and will continue to share Confidential Information. The City is subject to public disclosure requirements of ORS 192.410 to 192.505. Confidential Information may only be shared when required to comply with Oregon law and in accordance with the following process: 3.16.1 In the event the City receives a request for any Confidential Information under Oregon law, the City shall provide Contractor with written notice of the request within two (2) business days of the receipt of the request. 3.16.2 If Contractor does not object to the disclosure of the requested Confidential Information within ten(10)business days of receiving the notice,the City may disclose the Confidential Information without reservation or condition and without any liability to Contractor. 3.16.3 If Contractor objects to the disclosure of the requested Confidential Information within ten (10) business days of receiving the notice, the City shall assert a trade secret exemption and shall not disclose any information subject to the exemption. 4. SUPPORTING DOCUMENTS 4.1 The following documents are, by this reference, expressly incorporated in this Agreement, and are collectively referred to in this Agreement as the "SUPPORTING DOCUMENTS:" • Contractor's complete written Third Scope of Work for the City of Ashland for "Water Quality Temperature Trading Program —Phase 3A" dated May, 2025 (Exhibit B) • Contractor's complete written Second Scope of Work for the City of Ashland for"Water Quality Temperature Trading Program —Phase 11" dated July 29, 2019 (Exhibit C) • Contractor's complete written Scope of Work for the City of Ashland for "Water Quality Temperature Trading Program Partnership" dated August 21, 2018 (Exhibit D) • The City of Ashland Water Quality Trading Plan (Exhibit E) • Contractor's 2025-2026 Billing Rate Sheet(Exhibit F) 4.2 This Agreement and the SUPPORTING DOCUMENTS shall be construed to be mutually complimentary and supplementary wherever possible. In the event of a conflict which cannot be so resolved, the provisions of this Agreement itself shall control over any conflicting provisions in any of the SUPPORTING DOCUMENTS. In the event of conflict between provisions of two of the SUPPORTING DOCUMENTS,the several supporting documents shall be given precedence in the order listed in Article 4.1. 5. REMEDIES 5.1 In the event Contractor is in default of this Agreement, City may, at its option, pursue any or all of the remedies available to it under this Agreement and at law or in equity, including, but not limited to: 5.1.1 Termination of this Agreement; 5.1.2 Withholding all monies due for the Work that Contractor has failed to deliver within any scheduled completion dates or any Work that have been delivered inadequately or defectively; 5.1.3 Initiation of an action or proceeding for damages, specific performance, or declaratory or injunctive relief, Page 5 of 8: Goods and Services Agreement between the City of Ashland and The Freshwater Trust 5.1.4 These remedies are cumulative to the extent the remedies are not inconsistent,and City may pursue any remedy or remedies singly, collectively, successively or in any order whatsoever. 5.2 In no event shall City be liable to Contractor for any expenses related to termination of this Agreement or for anticipated profits. If previous amounts paid to Contractor exceed the amount due, Contractor shall pay immediately any excess to City upon written demand provided. 6. TERM AND TERMINATION 6.1 Term. This Agreement shall be effective from the date of execution on behalf of the City as set forth below (the "Effective Date"), and shall continue in full force and effect until June 30, 2031, unless sooner terminated as provided in Article 6.2. 6.2 Termination 6.2.1 The City and Contractor may terminate this Agreement by mutual agreement at any time. 6.2.2 The City may,upon not less than one hundred and eighty(180)days'prior written notice,terminate this Agreement for any reason deemed appropriate in its sole discretion. 6.2.3 Either party may terminate this Agreement, with cause, by not less than fourteen (14) days' prior written notice if the cause is not cured within that fourteen (14) day period after written notice. Such termination is in addition to and not in lieu of any other remedy at law or equity. 6.2.4 Contractor may terminate this Agreement if the Work is stopped for a period of ninety (90) consecutive days through no act or fault of Contractor or a subcontractor, sub-subcontractor or their agents or employees or other persons or entities performing portions of the Work under direct or indirect contract with Contractor, for any of the following reasons: (i) Issuance of an order of a court or other public authority having jurisdiction that requires all Work to be stopped; (ii) An act of government, such as a declaration of national emergency that requires all Work to be stopped; or (iii) Because the City has not made a payment within the time provided in this Agreement. 6.3 If this Agreement is terminated under Article 6.2, Contractor may recover from City payment for Work performed and any costs incurred by reason of such termination. 7. NOTICE Whenever notice is required or permitted to be given under this Agreement, such notice shall be given in writing to the other party by personal delivery, by sending via a reputable commercial overnight courier, or by mailing using registered or certified United States mail, return receipt requested, postage prepaid, to the address set forth below: If to the City: City of Ashland—Public Works Department Attn: Scott Fleury PE, Public Works Director 20 E. Main Street Ashland, Oregon 97520 Phone: (541) 488-5347 With a copy to: City of Ashland—Legal Department 20 E. Main Street Ashland, Oregon 97520 Phone: (541) 488-5350 Page 6 of 8: Goods and Services Agreement between the City of Ashland and The Freshwater Trust If to Contractor: The Freshwater Trust Attn: Vice President of People & Operations PO Box 9205 Portland, OR 97207 8. WAIVER OF BREACH One or more waivers or failures to obj ect by either party to the other's breach of any provision,term,condition, or covenant contained in this Agreement shall not be construed as a waiver of any subsequent breach,whether or not of the same nature. 9. CONTRACTOR'S COMPLIANCE WITH TAX LAWS 9.1 Contractor represents and warrants to the City that: 9.1.1 Contractor shall,throughout the term of this Agreement, including any extensions hereof, comply with: (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Contractor; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 9.1.2 Contractor further certifies that contractor is not in violation of any Oregon tax laws referenced in ORS 305.380(4). 9.2 Contractor's failure to comply with the tax laws of the State of Oregon and all applicable tax laws of any political subdivision of the State of Oregon shall constitute a material breach of this Agreement. Further, any violation of Contractor's warranty, as set forth in this Article 9, shall constitute a material breach of this Agreement. Any material breach of this Agreement shall entitle the City to terminate this Agreement and to seek damages and any other relief available under this Agreement, at law,or in equity. IN WITNESS WHEREOF the parties have caused this Agreement to be signed in their respective names by their duly authorized representatives as of the dates set forth below. Page 7 of 8: Goods and Services Agreement between the City of Ashland and The Freshwater Trust CITY OF ASHLAN The Freshwater Trust(CONTRACTOR): By: AVIIIZ-- By: 4 Sabrina Cotta, City Manager Signature Ja,0k7l'Ot- C4TI� Kimberlee Obilana Printed Name Printed Naive Z S Vice President People & Operations ate Title 6.16.25 Date Purchase Order No. (W-9 is to be submitted with this signed Agreement) APPROVED AS TO FORM: Carmel Zahran City A4104ey 6.30.25 Date Page 8 of 8: Goods and Services Agreement between the City of Ashland and The Freshwater Trust EXHIBIT A CITY OF ASHIIILA �ND, OREGOdN City of Ashland LIVING AGE E, per hour, effective June 30, 2024. Lp The Living Wage is adjusted annual lyeveiry June 301 Iby the Consumer Priic:e Index. pcwb.on of the business of of health care,retirement, their,employer,if the 401 K,and IRS eligib4e effnployer has ten or more cafeteria plans(indudinig effnployees,and has received childcare)benefits to the financial)assistance for the eimployee"s amount of wage5. 9�� ForaH hours worked under a prqect or business fronii the service fontrad lbehveen their C4 of Ashland over, Note: For temporary and emooyer,and the City,of $216,429.65; part-time employees,the Ashland if the contract Living Wage does not a,poy exceeds$26,429.65 or more. If their employer is the City of lo,the first 1040 houiirs worked For all hours worked imp a A51filand,including the PaTk5 in any calenclair year. For, month,if the ernptoyee and Recreation Department. more details,Ip9ease see spends 50%or,more of the AsHand Municipal Code emptoyee's time in that month In calculating the IMng wage, SecAioni 312020. working on a projeGt or emip�oyers may add the vaduie For actclitional information: Gail the Ashland QN,Mainager'soffice,at 541-488-6002 or write to the City Managier, C ity Hafl,20 Eaist Main Street,Ash land:,OR 97520,air visit the CdVs webs,ite atwww.as h I and.o ir.u S. Natice t IEirnploye,m This notice mu ist be,posted iin areas where it can be seem by alil eniplioyees. W, ASHLAND Exhibit B ������ ��2o��a�rTm��m�uuaodo�nn U00� brnb�a|orcony�rmn ibio�nc�ocr |rcbzm�a�� FRESHWATER ' D-������V� `����D0��� aod6ocro���-banrdnol"��on'=r�rckaog6ogHkr TRUST' co"rnrofcoonrmad0000adnorliorHka�noaurrn� Exhibit B Cit�/ �f A�hl���d—��t�� ���li��/T��������t��� Trading�����ra�� ~ Quality ~ ~ Scope f� � ����kr� �oh�8� _ ������ �'8 ��Re � ~ �� Stewardship ~�����' ~~ Gredit Program Nknagememt Services for the aty ofAshland 2025_2031 Nby, 2025 Background The City of Ashland (the City) selected The Freshwater Trust (TFT) as its partner to develop and implement a water quality trading (VV[[T) program for temperature compliance with the Clean Water Act.The City's Water Quality Trading Plan (WQT Plan),which was accepted by the Oregon Department of Environmental Quality (DEQ) as consistent with Oregon's Water Quality Trading Rule, relies on implementing riparian reve0etation projects togenerate credits (Thermal Credits)to satisfy the City's anticipated temperature obligations.TIFT has previously completed two phases of work for the City's VV[[Tpro0ram. In the Phase 1 planning phase,TFTestimated the cost to implement the full program the City'sTherma| Credit requirements (the City originally projected needing 13OK4Thermal Credits, which was increased to 135K4Thermal Credits in the VV[[T P|an).This total covers the entire projected 25'year program period.zTo align with the City'scapital improvement project planning process, the City originally requested thatTFT break this 25'year program into three periods: (1) Phase 2—the first six program years,which aligned with the City's Public Works C|P "capital" planning phase and where the majority of State Revolving Fund (SRF) loan-eligible capital expenses would be incurred; (2) Phase 3—the remaining fourteen years of the City's 20-year capital planning period; and (3) Phase 4—the five anticipated program years that will fall outside of the City's2O'yearcapital planning period. Phase 2 covered the initial six program years, from September 2O1ytoJune 2025. In Phase 2TFT implemented the Thermal Credit Projects (identified in the table in Section (C)) and completed all the required monitoring and reporting for those Projects. This Scope of Work is for the first six years of Phase 3 of the program (the remaining fourteen years of theCity's 20'yearcapita| planning period), the continued stewardship, monitoring, and reporting necessary to ensure the ongoing validity of the Thermal Credits and maintain compliance with the City's temperature obligations in its NPIDES Permit. Under this Scope of Work(Phase 3A),TIFT will continue to serve as the Credit Program Manager (CPK4), taking all actions necessary to continue stewarding the projects and maintain the resulting Thermal Credits. 'The City's Thermal Credits have a 20-year compliance lifetime.In addition,TFTprojected a 5-year Thermal Credit Project implementation(i.e.,planting and plant e stab hshment)window,resulting in a 25-yearprogram. uuu Definitions 1. Credit Program Manager(CPM)—The entity selected by the City ofAshland to deliver and steward Thermal Credits under this Agreement and in accordance with the DEQ-approved Water Quality Trading Plan for the City of Ashland's Thermal Credit Program. 2. DEQ—Oregon Department of Environmental Quality. 3. NPDES Permit—National Pollution Discharge Elimination System permit issued by DEQ pursuant to Section 402 of the federal Clean Water Act and Oregon's implementing regulations. 4. Parties—Collectively,the City of Ashland and TFT. 5. State Revolving Fund(SRF)—State clean water funding program that supports clean water infrastructure projects.The City used SRF for supporting project implementation(i.e.,the first five years of project),but this funding cannot be used for long-term operations and monitoring expenses. 6. Thermal Credit—One (1)kilocalorie (kcal)per day ofavoided solar loading calculated as a rolling seven day average for May 14"using protocols accepted by DEQ.The Thermal Credits can be used for achieving compliance with the NPDES Permit.lVbdeled kilocalorie reductions became Thermal Credits once they were independently certified for use on the City of Ashland's compliance ledger.All Thermal Credits generated under the Phase 2 Scope of Work became the property of the City. 7. Thermal Credit Projects—Riparian shade projects implemented by the CPMfrom 2019-2024 to generate Thermal Credits in conformance with City of Ashland's NPDES permit and the associated WQTPIan. 8. The Freshwater Trust(TF1)—An Oregon nonprofit corporation that has been contracted by the City of Ashland to serve as its CPM 9. Water Quality Trading Plan(WQTPIan)—Aprogram summary incorporated into the City of Ashland's NPDES permit by reference following formal regulatory approvalby DEQ. 2 Proposed Scope of Work: Credit Program Stewardship July 1,2025—June 30,2031 TFTwill act as the CPMfor the ten Thermal Credit Projects implemented during Phase 2(2019-2025)of the Water Quality Temperature Trading Program Partnership,as listed below.TFTwill complete the following activities for all sites in the City of Ashland's WQTprogram from July 1,2025,through June 30,2031,including: 1. Project Stewardship.TFTorits sub-consultants will complete all necessary stewardship to maintain the ten Thermal Credit Projects consistent with the WQTPIan.TFT will perform stewardship,monitoring and tracking activities on these projects in accordance with the performance standards outlined in the WQTPIan. 2. Credit Cycle Mama eg ment.TFTwillensure allproperthird-party verification and credit cycle documentation is completed and remains valid for the duration ofthe Agreement.Each Thermal Credit shallbe certified by an independent third-party and registered on a publicly accessible credit registry according to the specifications included in the City ofAshland's WQT Plan.TFT shall ensure that the Thermal Credits remain validly certified and registered for duration ofthe Agreement. 3. Program Nana eg ment.TFTwill manage the City of Ashland WQTprogram in accordance with the WQTPIan including communication and outreach with landowners,stakeholders and governmental entities active in the Bear Creek watershed. 4. Reporting. a. Quarterly Reporting:TFTwill provide the Cityof Ashland with quarterly projectupdate reports to appraise the City of Ashland ofthe status ofboth individual projects and the entire WQTprogram. b. Annual Reporting:TFTwillprovide the City ofAshland with annualproject monitoring and performance and monitoring reports by April 30 ofeach calendaryear.TFTwill also provide information upon request to support the City of Ashland's WQTcompliance reporting. City of Ashland Thermal Credit As-built Thermal Credits Forecasted Cost Project name verification SRFBundle (kcals/day; Estimate year May 14 modeling date) (2025—2031) 1.Bear Creek RM24.05 2020 1 2,360,802 $ 31,704 2.Bear Creek RM23.5 2020 1 22,378,196 $ 74,250 3.Bear Creek RM18.8 2021 2 12,627,601 $ 155,053 4.Bear Creek RM24.8 2021 2 13,470,103 $ 113,390 5.Ashland Creek RM0.2 2022 2 12,720,207 $ 121,682 3 6.Bear Creek RM22.9 2022 3 1,809,042 $ 144,337 7.Bear Creek RM24.1 2022 3 13,005,133 $ 40,201 8.Bear Creek RM16.6 2023 4 21,723,493 $ 143,956 9.Bear Creek RM14.1 2023 4 12,408,560 $ 280,114 10.Bear Creek RM6.6 2024 5 27,100,787 $ 194,0436 TOTAL 139,603,924 $ 1,298,737 Task estimate: $1,298,737 Deliverables 1. Credit Validity.TFTwill complete all stewardship,monitoring,and third-party verification necessary to maintain the validity of the City of Ashland's Thermal Credits in accordance with the City of Ashland's WQT Plan. 2. Reporting.TFTwill submit reports to the City of Ashland according to the following schedule: a. Quarterly Reports: For the duration of this Scope of Work,TFTwill submit quarterly reports documenting activities undertaken in the previous quarter no later than January 30",April 30",July 30",and October 30". b. Annual lVbnitoring Reports:For the duration of this Scope of Work,TFTwill submit annual monitoring reports no later than March 31" Invoicing 1. Invoicing Requirements. a. Invoice Contents.TFTwill invoice the City of Ashland for stewardship,credit cycle and reporting activities.Expenses will be provided to the City of Ashland for each State Revolving Fund loan and designated as loan-eligible or City-funded.Updates to the format of the invoice will be made upon the mutual agreement of the Parties. b. Invoice Timing.TFTwill submit invoices to the City of Ashland quarterly,within 30 days of the quarter's close. c. General Requirements.TFT shall submit billings to the attention of: Scott Fleury,P.E.Public Works Director City of Ashland,Public Works 20 East Main Street Ashland,OR97520 scott.fleury(�ashland.or.us 4 Exhibit C The The Freshwater Trust is a 020 FreshwaterTr u�� III 501(c)(3)not-for-profit Organization Changing the course that actively works to preserve of conservation. and restore our freshwater ecosystems. Water Quality Temperature Trading Program — Phase II Second Scope of Work for the City of Ashland July 29, 2019 Introduction: The City of Ashland (the City)selected The Freshwater Trust (TFT) as its partner to develop and implement a water quality trading(WQT) program for temperature compliance with the Clean Water Act.The City's Water Quality Trading Plan,which has been accepted by the Oregon Department of Environmental Quality(DEQ) as consistent with Oregon's Water Quality Trading Rule,will focus on implementing riparian revegetation projects to generate credits (Thermal Credits')to satisfy the City's expected upcoming temperature obligation (Full WQT Program). Originally,TFT anticipated that this program would consist of three contract phases: 1) program design (Phase 1), 2) research/demonstration project implementation (Phase II), and 3)full program implementation (Phase 111).After working through Phase I activities, and in consideration of new information learned during this period,TFT and the City have adjusted their approach for later phases. As part of its Phase I deliverables,TFT projected an overall program cost for the City's Full WQT Program,which the City estimates will require approximately 130 million Thermal Credits.This total covers the entire projected 25-year program period (all credits have a 20-year compliance lifetime and TFT projects a 5-year implementation (planting and plant establishment)window,which results in a 25-year program).To align with the City's capital improvement project(CIP) planning process,the City requested that TFT break this total into three periods: (1) the first six program years,which aligns with the City's Public Works CIP "capital" planning phase and where the majority of State Revolving Fund (SRF) loan-eligible capital expenses will be incurred; (2)the remaining fourteen years of the City's 20-year capital planning period; and (3)the five anticipated program years that will fall outside of the City's 20-year capital planning period. TFT projected a total program cost for the Full WQT Program of$4,584,962 (2019$),with $2,605,342 in the first 6-year program period,$1,717,006 in the next 14-year period, and $262,614 over the final 5-year period. This second scope of work covers the first 6-year period,which will afford the City and TFT an opportunity to assess progress and actual costs incurred prior to initiating the second 14-year period. In addition, because this scope covers the full anticipated implementation window, it will not force TFT to arbitrarily estimate what projects will be implemented when.Through use of its prioritization and optimization tools,TFT hopes to deliver the ' Each Thermal Credit individually represents one(1)negative kilocalorie per day(kcal/day)of thermal input.Thermal Credits shall be calculated using protocols accepted by DEQ.All Thermal Credits generated under this Second Scope of Work shall become the property of the City. program for less than the estimated total but proposes to establish contractual not to exceed amountsasancickedvviththemoneuonaenmtiveesimate. Phaae2: Riparian Research Project Implementation UpKo6 years after uonnnnencementof Phase Z A. VVOT project site recruitment, implementation,stewardship &credit cycle: 1. Site recruitment:TFT will select, recruit, and secure site protection agreements from private landowners within the Bear Creek watershed.TFT shall execute contractual agreements with landowners conveying interests in real property to TFT, or otherwise protecting the real property from uses incompatible with the generation and maintenance of Thermal Credits,for a term no less than twenty(20)years from the date of certification of the Thermal Credits generated on the landowner's property. In doing so,TFT will pursue projects that produce comparatively cost-effective credits, and that align with the City's desire to keep projects as close to the City as possible.TFT will closely coordinate with the City to stay aligned on priorities, understanding that the City's ability to approve projects on City-owned lands will be an important variable in determining how many projects can be implemented within or close to City limits. 2. Site implementation,stewardship& credit cycle management:TFT will prep and implement riparian restoration activities on privately owned sites consistent with the Trading Plan, calculate Thermal Credits, and ensure all proper credit cycle documentation is completed.TFT will perform monitoring and stewardship activities, including plant establishment, on these sites through program year six(6). TFT will also support the City in implementing and stewarding WQT projects on City-owned land.TFT will undertake all of these activities in a way that maximizes SRF funding reimbursement. Task Estimate: $2,605,342 B. Stakeholder outreach: Buy-in from local partners and landowners is key to program success.TFT will coordinate with the City to identify key stakeholders, communicate with those stakeholders, and develop and implement a coordinated outreach strategy for the program. Task Estimate:$24,700 (160houo). C. Permit support:TFT will provide technical support to the City for its permit discussions with DEQ. Potential activities include amend ments/adj ustments to the Trading Plan, proper reference and incorporation of trading detail into the City's NPIDES permit, compliance schedule development and justification, and incorporation of pre-permit trading sites into post-permit compliance sites. Task Estimate: $37,275 (285houo). Deliverables: l. TFT will recruit, implement,and steward all necessary private land credit projects in the Bear Creek watershed.TFT will implement and manage all mutually agreed aspects of City-owned sites. Volume, timing and location of project sites will be dependent on the number of City-owned sites that move forward and landowner interest.TFT will ensure that all credit project sites have been secured and implemented by the end of Phase l 2.Outneach strategy summary. 3.As needed permit support. Phase 2Not-to-ExceedAmount:$2,66J,31y.This total includes: m $3,6O5,343 for all VVUT project expenses over the first six program years 0 $24,7OU for stakeholder outreach m $9J,276 for permit support Suggested Meetings: ° The exact meeting schedule will be determined after contracting, but TFT proposes participation in an in-person kickoff with the City at the beginning o[this Scope ofWork. * The Trust expects to lead conference calls and in-person meetings with the City as needed to adequately resource this innovative and complex partnership. Anticipated Timeline: Task A Task B Task C MEN Conclusion: TFT has proposed this Scope of Work based on its deep experience developing temperature credit trading programs for Clean Water Act compliance in Oregon,and in particular in the Rogue River Basin.Atthe conclusion of this Scope, all project sites will have been implemented. Contact for next steps: TFT looks forward io working with the City. Please direct questions, comments and additions to: TimVVigin8ton Eugene Wier Attorney& Finance Director Habitat Restoration Project Manager 603'222-9091x41 541-708-0934 hm@theh.eshvvatertrust.org 641-227'9858 euQene@thefneyhvvatertrust.org The y FreshwaterTrut� The Freshwater Trust is a .......... 501(c)(3)not-for-profit organization Clanging the course that actively works to preserve of conservation, and restore our freshwater ecosystems. Senior Directors $175 per hour Directors $145 per hour Policy Specialist* $135 per hour Project Manager $125 per hour Ecosystem Services Analyst $115 per hour GIS Analyst $105 per hour Monitoring/Field Staff $90 per hour Communications/Design $80 per hour Field Technician $70 per hour Invoice/Administration $60 per hour *while some of The Freshwater Trust's policy specialists are licensed attorneys,The Freshwater Trust only provides policy analysis and not legal advice to its clients. 700 SW Taylor Street The-y I e Suite 200 The Freshwater Trust is a Portland,OR 97205 Phone;503.222.9091. Alldo ationst�re profit. Freshwater Trust Alldonationsde taxlaw www.tGwfr`e�N�w1�r�tr'ot.org Fax:503,222,9:1�7 rlec°lu<;tikale under tax Laws. Exhibit D TI I s w Tr St" The Freshwater Trust is a 1(c)( ) not-for-profit organization Cha ruging the course that a tiveb works to preserve of conservation, and restore our freshwater ecosystems. Water Quality TemperatureTrading r ram Partnershi PROPOSED Scope of Work for the City of Ashland August 21, 2018 Introduction: The City of Ashland (the City) has selected The Freshwater Trust (TFT) as its partner to develop and implement a water quality trading program for temperature compliance with the Clean Water Act.The City's Water Quality Trading Plan,which has been accepted by the Oregon Department of Environmental Quality(DEQ) as consistent with Oregon's Water Quality Trading Rule,will focus on implementing riparian revegetation projects to generate credits to satisfy the City's expected upcoming temperature obligation. Developing this program will consist of three phases: 1) program design (Phase 1), 2) research/demonstration project implementation (Phase 11), and 3) full program implementation (Phase 111). Phase III will commence after the City receives its updated NPDES permit.The project implementation, program administration, and credit cycle activities associated with Phase III will be informed by the lessons learned through Phases 1-11. TFT has outlined the subtasks and "not to exceed" cap for the first two phases. While included for illustrative purposes, the City and TFT only intend to contract for Phase I activities at this time. Phase 1: Trading Program Design Up to 6 months :r''ter project I :ii.. k.....of f" A. Program planning and prioritization:Through geospatial analysis and modeling with a geographically- calibrated module of HeatSource named Shade-a-lator,TFT identified credit potential in the Bear Creek trading area in 2016.TFT will refresh these estimates to reflect current conditions.TFT will coordinate with the City to determine which City-owned sites could be good candidates for credit generation, and will identify the privately-owned sites in the trading area that have both high credit generation potential and potentially interested landowners.Task Estimate: $21,150 (175 hours). B. Program cost range: After obtaining a better understanding of City priorities and potential private land participants, and the likely public-private blend of sites,TFT will run various scenarios in order to provide the City with a likely program cost range.TFT cost scenarios will be based on the site-specific credit and site size information confirmed from (A), as well as current restoration costs experienced by TFT in the Rogue Basin.TFT's cost estimate will have a target accuracy of-20%to +30%, which is consistent with the accuracy range for a "Class 5" cost estimate described by the Association for the Advancement of Cost Engineering.1TFT will further refine this estimate based on the experience obtained through Phase II activities.Task Estimate: $13,800(100 hours). C. SRF administration: DEQ has determined that most activities occurring at riparian revegetation sites within five (5)years of implementation can be eligible for SRF reimbursement.TFT will propose an SRF administration approach aimed at maximizing the eligibility of activities for SRF reimbursement within these timelines, and will produce an estimated breakdown of site costs by SRF-eligible and non SRF- eligible expenses.TFT will lead in coordinating with DEQ to finalize any necessary documentation needed to support use of SRF funds in the trading program.Task Estimate: $11,850(70 hours). D. Long-term stewardship financial approach: Because trading sites must be actively stewarded for 20 years (longer here because of desire to delay credit life activation until the City receives its updated permit), but SRF reimbursement eligibility only lasts for five years post-implementation,the City will need to ensure that adequate funds are available to cover these long-term stewardship activities.TFT will coordinate with the City to develop a financial strategy for covering these long-term costs in the most cost-effective manner.Task Estimate: $7,000 (40 hours). E. Program tracking and reporting templating: Over the last decade,TFT has identified the tracking and reporting documentation necessary to efficiently and effectively administer a trading program.To ensure that the City's trading program documentation will remain consistent with its Trading Plan,TFT: 1) will update and customize landowner lease agreements; 2) coordinate with the City to help draft durable and trading-appropriate easement language for City-owned trading sites; 3) recommend a trading program tracking approach that is both consistent with Oregon trading rules and cost-effective for the City;4) coordinate with the City to develop SRF and other DEQ reporting templates; and 5) develop the overall stewardship and third party verification system as discussed in the Trading Plan. Task Estimate: $25,950 (210 hours). F. Supply chain scaling: During the pre-permit phase, it will be important to scale up the supply and labor chain so that when the City receives a thermal compliance obligation and compliance schedule, implementation and management of the program can proceed smoothly.TFT will coordinate with the City to identify the likely annual trading program funding availability over the next decade and then recommend a responsive funding and implementation arc to maximize economies of scale in the supply and labor chain.Task Estimate: $27,800 (220 hours). Deliverables: 1. Updated credit potential analysis for Bear Creek(digitally and in map format with spreadsheet (excel) backup). 2. Summary analysis of best prospects, with initial outreach completed and results documented. 3. Program cost range estimate for full trading program.This includes all three phases—the third phase being the costs of the longer term stewardship activities for full credit life. i "Class 5 estimates are generally prepared based on very limited information,and subsequently have wide accuracy ranges...."AACE, International Recommended Practice No.105-90,Cost Engineering Terminology,http://www.aacei.org/terminology/.For a Class 5 cost estimate,the AACE expects-20%to-50%in cost variation on the low end of the range,and+30%to+100%on the high end of the range. �f The S3Ar 200 TheFiiestnuaterlrustiisa �y ar -1, 11 u� 1 not-for-profit, e. III h Trust" Portland,, R ..�20 Iw hon 0 �2 � ,,90�� AH do•anm�ltic�ns are tuoluy ttr,x�- w � e e Faxt .3,222 18 de uucfiUe ande tax iawa s,. 4. SIRE administration approach aimed at maximizing the eligibility of activities for SIRE reimbursement, with estimated breakdown of site costs by SRF-eligible and non SRF-eligible expenses. 5. Financial plan and recommendation for effective long-term stewardship of sites. 6. Customized landowner lease agreement template, which will require City legal approval and City Council approval of the overall lease structure. 7. Durable and trading appropriate easement language for City-owned trading sites. 8. Summary memo articulating trading program tracking approaches and recommendations. 9. SIRE and other DEQ reporting templates. 10. Recruitment timing recommendations memo based on likely funding levels and ability to maximize supply chain efficiencies. Phase 1 Not to Exceed Amount: $130,988. Includes$107,050 in projected TFT labor, $6,853 in projected direct expenses, and a 15%contingency. Phase 2: Riparian Research Project Implementation Up to years after project y :ii.. y, .....off" A. Private site implementation:TFT will select, recruit, and secure site protection agreements from the first set of private landowners within the Bear Creek watershed. TFT will prep and implement the sites consistent with the Trading Plan, calculate credits, and ensure all proper credit cycle documentation is completed.TFT will perform monitoring and stewardship activities. Stewardship activities include planting establishment. TFT will also test the SIRE funding reimbursement approach.Task Estimate: $572,465 (largely comprised of supply/material purchases and subcontractor costs, but also includes TFT labor and direct expenses).The estimated private site costs cover the first 24-months of expected costs at those sites, not the full project site costs that will accrue over the project life (approximately 50%of project site costs are expected to occur in the first two years). Because all sites produce credits differently,these estimated Y1-Y2 project costs are based on what TFT expects it will cost to secure and implement enough sites to fulfill approximately 1/3 of Ashland's estimated credit need (not a particular number of sites;for example, one site could produce 40 million credits, or three could). Once TFT has completed Phase I of this scope and has actual sites recruited/prioritized, the cost and credit return from these sites will be fully known. B. Public site implementation support and leadership:TFT will support the City in selecting and implementing at least one City-owned demonstration project.TFT will coordinate with the City to identify the roles and responsibilities each partner (City,TFT, implementation contractors)will take with respect to implementing and managing the site.Task Estimate: $54,900 (400 hours), with up to$34,800 (240 hours) available as contingency that the City may authorize. For this task,TFT has only estimated the costs associated with supporting the City in selecting/managing public demonstration project(s), not implementation costs. Once both parties better understand roles and responsibilities, and specific City site preferences are known,TFT will be able to provide implementation cost estimates for these site(s). �f The Suftu 200 Th(zFiieshuaterlrustilsa �y c ar -1, 11 u� 1 not-fir-profit, e. III h Trust" Portland,, R ..�20 Iw hon 0 �2 � ,,90�� ,��h��°r)•i�ltCc�ns are tuolly�tr.,xx- ww� m e eo Faxt .3,222 18 de uuctur e uurdertax Iav,is,. C. Lessons learned and approach comparison:TFT will analyze the lessons learned from each approach, including a cost comparison, and identification of if/where cost categories differ between the two approaches.Task Estimate: $22,325 (160 hours). D. Stakeholder outreach: Buy-in from local partners and landowners is key to program success. Often, recruitment hinges on finding and persuading the right influencers.TFT will coordinate with the City to identify key stakeholders, communicate with those stakeholders, and ultimately develop and implement a coordinated outreach strategy for the program.Task Estimate: $24,700 (160 hours). E. Permit support:TFT will support the City in its permit negotiations with DEQ. Potential activities include amendments/adjustments to the trading plan, proper reference and incorporation of trading into the City's NPDES permit, compliance schedule development and justification, and incorporation of pre- permit trading sites into post-permit compliance sites.Task Estimate: $37,275 (285 hours). Deliverables: 1. TFT will implement and manage all mutually agreed aspects of the public land demonstration site(s). 2. TFT will complete private land credit-ready riparian restoration projects in the Bear Creek watershed. Volume of project sites will be dependent on City funding availability and timing. 3. TFT will draft, in coordination with City staff, a lessons learned and cost comparison document articulating the primary differences and cost impacts associated with the two approaches. 4. Outreach strategy summary. 5. As needed permit support. 6. Develop and implement first stages of the verification process while still preserving maximum credit life for the City's compliance period, and gain DEQ approval of the process. Phase 2 Not to Exceed Amount: $753,515. Includes $572,465 for private site implementation and early establishment costs through the first two years (including all TFT costs); $174,000 in projected TFT labor (with $34,800 in Phase 2(B) contingent upon City approval); and $7,050 in projected direct expenses. Suggested Meetings: • The exact meeting schedule will be determined after contracting, but TFT proposes participation in a project team kick-off with the City at the beginning of this Scope of Work. • The Trust expects to schedule and lead monthly conference calls and quarterly in-person meetings with the City to adequately resource this innovative and complex partnership. Timeline: Phase 1 Phase 2* �f The Suftu 200 ,The Fi eshi grater bust ils a �y c ar -1, 11 u� 1 rroaar,t�ad h� rr�rrt. e. III h Trust" Portland,, R ..�20 Iw hon 0 �2 � ,,90�� Ah��°r)•i�ltCc�ns are tuolly�tr.,xx- w � e eo Faxt .3,222 18 de uuctur e uurdertax Iav,is,. *Phase 2 may start as early as Month 4, but could start as late as Month 7. Conclusion: TFT has proposed this Scope of Work based on its deep experience developing temperature credit trading programs for Clean Water Act compliance in Oregon. At the conclusion of this Scope, all program design steps will have been completed, the City will have several project sites completed, and TFT and the City will have identified the respective roles, responsibilities, costs and implications of further implementing sites on both publicly-and privately-owned land. Contact for next steps: TFT looks forward to working with the City. Please direct questions, comments and additions to: Tim Wigington Denis Reich Attorney, Finance Director Southern Oregon Programs Director 503-222-9091 x41 503-222-9091 x49 tim@thefreshwatertrust.org 503-213-0692 denis@thefreshwatertrust.org 70 3 SW'Taylor Street �f The Suftu 200 TheFiieshi (vat r'Trustilsa �y c at -1, 11 u� 1 not-for-profit, e. III h Trust" Portland,, R ..�20 �w hon 0 �2 � ,,90�� ,��H do•anmzitCc�ns are tuoluy�tr.'xx- w � m e Faxt .3,222 18 de uuctur e under tax iaois,. The FreshwaterTrust The IFrhwtnr T nt is a / 5 t(c)( not-tor-profit organization Chnin the course that actively works to preserve f conservation. and restore our freshwater ecosystems, EM Senior Directors $175 per hour Directors 10 per hour PolicySpecialist* 1 0 per hour Project Manager 10 per hour Legal Analyst 110 per hour Ecosystem Services Analyst 100 per hour GIS Analyst 0 per hour Monitoring/Field Staffper hour Communications/Design $75 per hour Field Technician $65 per hour Invoice/Administrationper hour -'-While some of The Freshwater Trust's policy specialists are licensed attorneys, The Freshwater Trust only provides policy analysis and not legal advice to its clients. rrrrrrrrrrrrr��rr r / / rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr / r rr r r/ r e / i o i , r / l r r r ai ii ,��/ / /i /� rr///orrrrrrrrrrrr�d a r r l J,r � J J orrrrrrrrrrr r�i r /i / rr r r. rr�r APPROVED Exhibit E CITY OF' As " LAIN rwi4mi�l� Water QualityTrading Plan Developed with assistance from The Freshwater Trust for compliance with NPDES Permit No. 101609 TABLE OF CONTENTS CITY OF ASHLAND WATER QUALITY TRADING PLAN.................................................................................................1 Introduction............................................................................................................................................................1 OAR 340-039-0025(5)(A):Temperature Trading....................................................................................................1 OAR 340-039-0025(5)(C):Trading area..................................................................................................................1 OAR 340-039-0025(5)(D): BMPs.............................................................................................................................2 OAR 340-039-0025(5)(F): Credits...........................................................................................................................3 Quantityand Timing...........................................................................................................................................3 MethodsUsed ....................................................................................................................................................4 CreditDuration...................................................................................................................................................6 OAR 340-039-0025(5)(b): Baseline.........................................................................................................................8 OAR 340-039-0025(5)(e):Trading ratios............................................................................................................. 10 OAR 340-039-0025(5)(g): Monitoring................................................................................................................. 11 OAR 340-039-0025(5)(H):Trading Plan Performance Verification ..................................................................... 12 OAR 340-039-0025(5)(1):Tracking and Reporting............................................................................................... 13 OAR 340-039-0025(6):Adaptive Management................................................................................................... 13 OAR 340-039-0040(4): Financial additionality.................................................................................................... 14 EXHIBITS Exhibit A—Regulatory Background Supporting Trading in Oregon Exhibit B—City of Ashland Water Quality Trading Area Exhibit C—Willamette Partnership Performance Standards for Riparian Revegetation City of Ashland Water Quality Trading Plan TOC CITY OF ASHLAND WATER QUALITY TRADING PLAN INTRODUCTION The City of Ashland intends to pursue water quality trading (WQT) as a strategy for satisfying the thermal discharge limits in the City's Clean Water Act (CWA) NPDES permit. According to U.S. Environmental Protection Agency (EPA) and Oregon Department of Environmental Quality (DEQ) policies and regulations, Ashland is eligible to trade as a NPDES permit holder.'As described in the following section,Ashland's temperature trade is eligible.'The Bear Creek watershed is water quality limited for temperature issues related to the salmonid life cycle,'and so is an eligible waterbody where trading may occur. As described in the following sections of this Trading Plan, the BMP Ashland will implement for credit generation is quantifiable and has sufficient BMP quality standards.'Therefore,the City of Ashland is eligible to engage in water quality trading in conformance with Oregon's regulations as further detailed in this Trading Plan. A summary on the regulatory framework supporting trading in Oregon is provides additional context in Exhibit A. The following subsections describe how this Trading Plan aligns with each of the required components of a trading plan, as described in OAR 340-039-0025(5).To better assist in explaining how these components fit together,this Trading Plan describes some of the -0025(5) requirements out of order. OAR 340-039-0025(5)(a): TEMPERATURE TRADING Pursuant to the trading rule, a trading plan must identify"the parameter for which water quality trading is proposed."The trading rule authorizes trading for temperature.'This Trading Plan is designed to help Ashland meet its temperature reduction obligation. OAR 340-039-0025(5)(c): TRADING AREA Pursuant to the trading rule, a trading plan must include a "description of the trading area including identification of the location of the discharge to be offset, its downstream point of impact, if applicable,where trading projects are expected to be implemented, and the relationship of the trading projects to beneficial uses in the trading area." According to the 2003 EPA Trading Policy, trades should occur within the same watershed or area covered by a TMDL to ensure that the benefits of trades affect the same waterbody where the discharge is occurring.6 A trading area must encompass "a watershed or other hydrologically-connected geographic area, as defined within a water quality management plan adopted for a TMDL, trading framework or trading plan.A trading area must encompass the location of the discharge to be offset, or its downstream point of impact, if applicable, and the trading project to be implemented."'Trading areas must also be consistent with TMDL water quality management plans (WQMP), where they exist, and may be established in water quality trading frameworks.' In summary, Oregon rules require that a trading area: 1) identify the location of discharge to be offset, 2) identify a downstream point of impact (if applicable), and 3) describe the relationship between trading projects 1 OR.ADMIN.RULES 340-039-0015(1). 2 OR.ADMIN.RULES 340-039-0015(2). 3 Or.Dep't of Envtl.Quality,Integrated Report(2018/2020),www.oregon.gov/deq/wq/Pages/epaApprovedIR.aspx. 45ee sections in this Trading Plan on OAR 340-039-0025(5)(d),(f). 5 OR.ADMIN.RULES 340-039-0015(2)(a). 6 U.S.EPA,Water Quality Trading Policy,68 Fed.Reg.1608,1610(Jan.13,2003),available at https://www.gpo.gov/fdsys/pkg/FR-2003- 01-13/html/03-620.htm;OAR 340-039-0040(1). 7 OR.ADMIN.RULES 340-039-0005(5). 8 OR.ADMIN.RULES 340-039-0035(2)(trading areas must be consistent with any applicable TMDL water quality management plan). City of Ashland Water Quality Trading Plan Page 1 and beneficial uses. In addition, the trading area 4) must encompass a watershed or other hydrologically- connected geographic area, as defined within a water quality management plan adopted for a TMDL, trading framework or trading plan, and 5) must also be consistent with TMDL water quality management plans (WQMP), where they exist. Consistent with these requirements, Ashland's trading area focuses on the upper Bear Creek watershed, above Bear Creek river mile 4. A map of the trading area is included in this Trading Plan as Exhibit B. Ashland's trading area encompasses Ashland's discharge and the point of maximum impact identified by DEQ in the Bear Creek temperature TMDL.9 The trading area also has a strong relationship between trading projects and beneficial uses in the watershed. Because the Bear Creek watershed is listed for temperature impairments related to cold-water species life stages,10 riparian revegetation trading projects will be directly linked to improving conditions for temperature-based beneficial uses.The trading area covers the watershed/ hydrologically connected area covered by the current Oregon temperature TMDL for the Bear Creek subbasin. This trading area is also consistent with the Bear Creek TMDL water quality management plan (WQMP): the Bear Creek TMDL WQMP11 speaks to better management of riparian areas, as well as habitat improvement for salmonids—both of which are affirmatively addressed in this Trading Plan. Additionally, a focus on the upper Bear Creek watershed will help Ashland pursue more projects closer to city limits. OAR 340-039-0025(5)(d): BMPS Pursuant to the trading rule, a trading plan must include a "description of the water quality benefits that will be generated,the BMPs that will be used to generate water quality benefits, and applicable BMP quality standards." A BMP is defined as "in-water or land-based conservation, enhancement or restoration actions that will reduce pollutant loading or create other water quality benefits. BMPs include, but are not limited to, structural and nonstructural controls and practices and flow augmentation."12 A BMP quality standard must include "specifications for the design, implementation, maintenance and performance tracking of a particular BMP that ensure the estimated water quality benefits of a trading project are achieved, and that allow for verification that the BMP is performing as described in an approved trading plan."13 The BMP that will be used to generate water quality benefits under this Trading Plan is riparian shade restoration in the Bear Creek watershed trading area. Riparian restoration will block thermal loading into the Bear Creek watershed (see next subsection on Credits for more detail on the calculation methodology).The BMP quality standard for riparian restoration projects include the following components: • Sites will be designed, implemented, monitored, verified and tracked consistent with Willamette Partnership February 16, 2016 Performance Standards for Riparian Revegetation (Exhibit C of this Trading Plan).14 Sites will be legally protected for the duration of the credit project life (e.g., private leases, or appropriate encumbrances if on publicly owned land). • In accordance with maintenance plans developed at the outset of credit projects, sites will be visited regularly for maintenance, especially in early"establishment" years. During site establishment, 9 Or.Dep't of Envtl.Quality,Bear Creek Watershed TMDL,Section II:temperature,at 45,fig.11 and 12(2007). 10 The proposed outfall location in Bear Creek is designated for year-round salmon and trout migration and rearing use per OAR 340-041- 0028(4)(c),Figure 271A,and are designated for spawning use during October 15—May 15 per OAR 340-041-0028(4)(a),Figure 271B. 11 OR.ADMIN.RULES 340-039-0035(2)(noting that trading areas must be consistent with any applicable TMDL water quality management plan).Or.Dep't of Envtl.Quality,Bear Creek Watershed Total Maximum Daily Load,ch.II,Water Quality Management Plan(2007), available at www.deq.state.or.us/WQ/TMDLs/docs/roguebasin/middlerogue/bearcreek/tmdlchp2wgmp.pdf.The Bear Creek TMDL is scheduled for replacement in 2026 to update the temperature standards,which will likely also result in a replacement WQMP.Or.Dep't of Envtl.Quality,Temperature TMDL Replacement Project(2020),www.oregon.gov/deq/wq/tmdIs/Pages/tmdIrepIacement.aspx.This process is not likely to change the geographic area and the general management goals for Bear Creek though. 12 OR.ADMIN.RULES 340-039-0005(1). 13 OR.ADMIN.RULES 340-039-0005(2). 14 Willamette Partnership,Performance Standards for Riparian Vegetation(2016),available at http://willamettepartnership.org/wp- content/u ploads/2014/06/Performance-Stds-for-Rip-Reveg_2016-02-16.pdf. City of Ashland Water Quality Trading Plan Page 2 minimum maintenance on most sites will usually include one spring ring spray, one summer mow or cut and one fall spot spray. At some sites, irrigation supported by water rights may be an appropriate option during the first several years. Inter-planting may also be needed. Once a site has become established, maintenance activities will continue, but will likely occur at less frequent intervals. Details on the performance tracking and verification aspects of the BMP quality standards are described below in the subsections corresponding with OAR 340-039-0025(5)(G)verification, and (H) tracking/reporting. OAR 340-039-0025(5)(f): CREDITS A trading plan must include a "description of the credits needed to meet water quality-based requirements of an NPDES permit or 401 water quality certification, including: (A) Quantity and timing:The number of credits needed and any credit generation milestones, including a schedule for credit generation; (B) Methods used: How credits will be quantified, including the assumptions and inputs used to derive the number of credits; and (C) Duration of credits: A description of the length of time credits are expected to be used. Quantity and Timing The calculation of Ashland's credit need and timing is a three-step process: 1) calculate projected thermal load exceedances throughout the year; 2) identify the projected exceedances the trading program is designed to offset(as trading may not fully address all projected exceedances, especially during periods of the year where certain BMPs are not as effective); and 3) apply programmatic trading ratios. First, Ashland identified its projected excess thermal load exceedances in monthly intervals throughout the year, beginning on the 151h day of each month and extending through the 141h day of the following month.15A facility's projected thermal exceedance is equal to: (Facility Excess Thermal Load)—(Excess Thermal Load Limit), or ETL—ETLL,where: • ETL= (FIOW effluent(cfs))X(oC effluent—oC Temperature Criteria16)x (Conversion Factor) • ETLL= (Flow river(cfs)+ Flow effluent(cfs))X(HUA17)x(Conversion Factor) Ashland's Outfall Relocation Study established the current and projected future ETLs discharged from the Ashland WWTP based on historic effluent flow and temperature and projected 2040 effluent flows.18 DEQ developed ETLLs based on Bear Creek 7Q10 low flows, projected 2040 effluent flows,the biologically based numeric criteria, and the HUA. With this information,Ashland calculated the monthly projected ETL exceedances throughout the year. Of note, this approach was previously shown to be more conservative than the application of actual historic daily flow and temperature data providing additional conservatism to the estimated maximum ETL excess to address via WQT.19 Table 1 illustrates the projected far-field thermal exceedances that will need to be addressed by trading.The ETL exceedances provided in Table 1 are conservative estimates based on a combination of monthly critical conditions and represent the maximum single day ETL exceedance that could probabilistically occur in each period. 15 In selecting the 151h as the first day of a monthly interval,the quantity and timing of Ashland's credit need aligns with the applicable biological temperature criteria,which changes on October 15 and April 15,consistent with the start and end of Coho spawning. 16 In Northwest Environmental Advocates v.EPA(NWEA ll),the Oregon federal district court set aside NCC as a standard,holding that it unlawfully supplanted the BBNC in violation of 40 C.F.R.§131.11(b)(2).Nw.Envtl.Advocates v.U.S.Envtl.Protection Agency,855 F.Supp.2d 1199,1217(D.Or.2012).Removal of the NCC from Oregon regulations leaves Oregon with the biologically based numeric criteria(BBNC)temperature standard.Therefore,the applicable BBNC temperature criteria was used to calculate Ashland's ETL. 17 OR.ADMIN.RULES 340-041-0028(12)(b)(B).DEQ regulations provide for a human use allowance(HUA)in temperature permit limits.The HUA allows for insignificant additions of heat in waters that exceed the applicable temperature criteria.The calculation of a HUA differs depending on whether a TMDL exists for a waterbody.The court in NWEA 11 explicitly upheld the legality of the HUA provision.855 F.Supp.2d at 1218, note 17. 18 CH21VI Hill,Ashland WWTP Outfall Relocation Study,Section 4,Table 4-12(August 2017). 19 CH21VI Hill,Ashland WWTP Outfall Relocation Study,Section 4,Figure 4-1 and 4-2(August 2017). City of Ashland Water Quality Trading Plan Page 3 Table 1. Projected maximum excess thermal loads (ETL)and ETL exceedonces under critical conditions using 2040 design flows. Second, Ashland identified the projected exceeclance periods that the trading program is designed to offset.This step requires comparison of projected exceedanceand shade benefit values throughout the year. Given the magnitude of Ashland's exceedances throughout the year, the thermal benefits generated from riparian restoration will not address all exceedances throughout the year, specifically those projected between October 15 through December 14.20 However, for the remainder of the year, if Ashland generates enough thermal credits to satisfy the maximum exceedance date during the April 15 through May 14 period, those projects will also produce enough thermal benefits to offset all other projected ETLexceedances up through October 14.21 Accordingly, Ashland will use the maximum projected exceedanceva|ue for April 15—May 14 as the target for building out a riparian restoration trading program, and may separately pursue additional mitigation strategies as needed to help address October l5—December l4 projected exceedances. Third, per OAR]40'0]9'0042, programmatic ratios must be applied to the projected monthly exceedancesto identify to total credit need each month. As described in the below Trading Ratio section of this Trading Plan, Ashland will use the typical 2:1 trading ratio for projects implemented after the permit renewal date, and a l.y:l ratio for project sites implemented prior to the issuance of the permit. Methods Used Ashland will estimate thermal benefitszzfrom riparian restoration projects using version O of DE[ysShade'a |atormode|. Shade'a |atorisamodu|eoftheHeatSourcemode|,z3astreamassessmenttoo| usedbyDE{l. Heat 20 The trading program is less effective during this eight-week period due to foliage loss and reduced shading,combined with seasonally low flows in Bear Creek and more stringent biological temperature criteria.|n the event critical conditions materialize and persist between October 15 and December 14,additional mitigation strategies will be required to offset daily ETL exceeclances. 21 The annual daily thermal benefit realized by achieving the April 15—May 14 ETL target was assessed by the City of Ashland in June 2021 via internal review of various simulated restoration scenarios in the Bear Creek riparian corridor. 22 The term thermal benefit refers to the reduction in thermal loading.In this analysis,thermal benefit is due to a reduction in incoming solar radiation that results from the implementation of a revegetation project.Thermal benefits represent the expected environmental benefits from implementing an action.The environmental benefit provided by a project serves as the foundation of a water quality credit o Boyd&Kasper,Analytical Methods for Dynamic Open Channel Heat and Mass Transfer: Methodology for the Heat Source Model Version 7.0(2003),available at http://www.deq.state.or.us/wq/TMDLs/tools.htm.DEC,has posted this document on its website as a City ofAshland Water Quality Trading Plan Page Source was developed in 1996 as a master's thesis at Oregon State University in the Departments of Bioresource Engineering and Civil Engineering. DEQ currently maintains the Heat Source methodology and software. Ashland will use an additional tool to complete the modeling:TTools.TTools is an ArcGIS extension that is also used and maintained by DEQ.TTools is used to sample geospatial data and assemble high-resolution inputs necessary to run the Heat Source model. To determine the potential reduction in solar loading (e.g., thermal benefits)that result from riparian planting projects, Ashland will compare current site conditions24(the solar load that reaches the surface of the stream under current conditions)to a future conditions scenario that assumes vegetation conditions (tree height and canopy density) at maturity(described later in this subsection).The difference in the incoming solar load (expressed in kilocalories per day) between the two scenarios represents the net thermal benefits generated from a riparian revegetation project. The modeling process for each scenario at a site will include multiple physical characteristics of the credit site, including: the upstream and downstream boundaries of the modeled stream reach, water surface area (based on the wetted width of the stream), local topography, bank slope, stream orientation, and geographic location (latitude and longitude). All parameters representing these physical characteristics of sites will be assumed to be the same in the current condition and future condition scenarios. The future conditions scenario incorporates the vegetation conditions (tree height and canopy density) expected under the post-implementation conditions. Based on available information, Ashland will apply a future condition scenario for Shade-a-lator modeling to reflect the anticipated future vegetation conditions.25 Planting plans are expected to include a high diversity of native trees and shrubs that will contribute to riparian ecological function and stream health. Ashland will base the vegetation parameters of the future conditions scenario on other trading planting projects in the Rogue River Basin and reference site surveys, including the riparian revegetation projects implemented for the City of Medford's water quality trading program in the Rogue River Basin. Some overstory species planted at riparian revegetation trading projects in the Rogue River watershed have included: big leaf maple (Acer macrophyllum), black cottonwood (Populus trichocarpa), ponderosa pine (Pinus ponderosa), and white alder(Alnus rhombifolia).Therefore, if a project includes this species mix,the future conditions Shade-a-lator parameters would use mature tree heights for these species and associated density values based on system potential vegetation for the Bear Creek watershed identified in the Bear Creek temperature TMDL modeling.26 Depending on the species mix at a particular site,the specific Shade-a-lator parameters might be resource for generally describing the math and assumptions used in Heat Source.While the document explicitly covers Heat Source version 7(and therefore Shade-a-lator version 7),the math and assumptions in version 7 are mostly the same as version 8,and so DEQ considers this document appropriate for summarizing both versions 7 and 8. 24 Multiple input datasets are used to characterize the current conditions at a potential project site.Aerial photography or light detection and ranging(LiDAR)data will be used to establish current conditions and to highlight the potential riparian areas available for project implementation.This process involves digitizing the areas of interest,evaluating the current vegetation conditions,and then modeling the current, pre-project incoming thermal load.These conditions are incorporated into a modeling scenario that quantifies the incoming solar load that reaches the surface of the stream given the current vegetation conditions. 25 The characteristics of the future conditions that are represented by the model parameters are the future vegetation height and future canopy density.In the Shade-a-lator model,the canopy density parameter represents the lateral attenuation of solar radiation as it passes through the riparian canopy. 26 Or.Dep't of Envtl.Quality,Bear Creek Watershed TMDL,Ch.1,34(2007)(discussing the relevant tree species associated with system potential vegetation).Height and density model parameters are described in Appendix A to the temperature TMDL.Or.Dep't of Envtl. Quality,Bear Creek Watershed TMDL,Appendix A: Bear Creek Watershed Temperature Assessment,at 16-18(2007).Ashland will use a density value of 75%for the time periods within the growing season,from April 1 to October 31,to reflect a full tree canopy.This is based on an average of the shade densities for two main habitat types.see Or.Dep't of Envtl.Quality,Bear Creek Watershed TMDL, Appendix D: Bear Creek Watershed Riparian Shade Assessment Report(May 2000).A reduced density value of 36%is appropriate to model winter conditions,a period when riparian shade is primarily provided by evergreen species.This figure is based on a literature review that suggested deciduous forest leaf-off canopy density is about 48%of the leaf-on canopy density.see e.g.,O.Fathizadeh,et al., City of Ashland Water Quality Trading Plan Page 5 different, but in all instances, those parameters will be consistent with the system potential vegetation characteristics associated with the species planted at a site. For both scenarios,the model then calculates the sun angle every 25 meters (these calculation points are referred to as "nodes") along the center of the modeled stream reach for every model time step (once per minute,which is then averaged into a daily value). At each node, the model calculates the total load of incoming solar radiation by considering the physical characteristics surrounding the node and the characteristics of the vegetation present on the streambanks (Figure 1).The difference in the incoming solar load (expressed in kilocalories per day) between the two scenarios represents the net thermal benefits generated from a riparian revegetation project. Figure 1:A cross-Section schematic of the,physical characteristics included in Shade-a-lator modeling. When the Sun angle is less than Onone all incoming Solar radiation is blocked by the local topography. When the Sun angle is greater than Ofup all incoming Solar radiation reaches the Surface of the stream. When the Sun angle is between Onone and Ofup the vegetation,present attenuates a,portion of the incoming Solar radiation. Solar path vegetation Height � orator C)W4 4 Distance As Figure 1 shows, the sun angle is a key parameter in the Shade-a-lator model. As such, the time of the year also affects the sun angle and the associated incoming solar radiation that reaches the surface of the stream. The time of the year also affects the length of the day, and thus the overall total potential incoming solar radiation. Due to these two factors, shade is modeled throughout the year. Credit Duration Credit duration, commonly known as credit life, refers to the "length of time credits are expected to be used."21 This refers to the period between when a credit becomes usable as an offset and when the credit is no longer valid. Credits are considered valid for use after the restoration action has been implemented and verified as functioning. Because Ashland's water quality trading program uses actions that take time to realize full benefits, restoration projects must be as effective and durable as alternative technology solutions.Therefore, verification and ongoing monitoring and maintenance of project sites are integral parts of the trading program's credibility. The 2003 EPA Trading Policy provides that "credits may be generated as long as the pollution controls or A Seasonal Evaluation of the Reformulated Gash Interception Model,409 FOREST ECOLOGY&Mc MT.601(2018), https://doi.org/10.1016/j.foreco.2017.11.058; H.Yang,et al.,Seasonal Variations of Leaf and Canopy Properties Tracked by Ground- based NDVI Imagery,7 Scientific Reports 1267(2017),www.nature.com/articles/s41598-017-01260-y. 27 OR.ADMIN.RULES 340-039-0025(5)(f)(C). City of Ashland Water Quality Trading Plan Page 6 management practices are functioning as expected" and may be used to comply with an annual, seasonal, or monthly NPDES permit limit once they have been generated.28 In the 2019 update to the 2003 EPA Trading Policy, EPA highlighted the need to "clarify and expand the range of policy options available for states" and encouraged policy choices that would "provide greater long term regulatory certainty.1129 Oregon rules also require that the trading plan detail how credits are quantified, taking into account the underlying assumptions and inputs used to derive the credit quantities.30 In addition, the Oregon rule definition of a credit identifies the need to specify the period of time over which water quality benefits will be generated.31 This Trading Plan adopts both a minimum credit life consistent with the rules, and the appropriate start date for the credit life. In defining these key aspects of credit life, Ashland looked to Oregon precedent, as well as the 2003 and 2019 EPA trading policies. With respect to a minimum credit life, the City of Medford program uses an average 20-year credit life, protected by long-term leasehold interests in the nonpoint source properties where the restoration occurs.32 Clean Water Services likewise uses a minimum 20-year credit life in its temperature management plan.33 Consistent with the 2003 EPA Trading Policy and these previous program precedents in Oregon,the credits Ashland produces from riparian vegetation projects will have a minimum 20-year credit life, with the option to extend those credits beyond the minimum life for as long as the shade sites continue to function as expected.This approach is consistent with the minimum period for which these projects are expected to function,34 the 2003 EPA Trading Policy, and EPA's 2019 recommendations for accelerating the adoption of WQT programs as a key strategy for investing in conservation. With respect to an appropriate credit start date, because credit life defines how long credits can be "used" and Ashland did not use credits for compliance until the new permit issued, the credit life of any pre-permit projects begins on the date Ashland received its renewed NPDES permit.The minimum 20-year credit life did not start when the pre-permit project was implemented or initially certified, but rather when Ashland received the permit, and started using the credits from those sites to comply with thermal load limits in its permit.This approach is consistent with EPA's 2019 Trading Policy update, which aims to reward early adopters.35 For projects implemented after Ashland received its permit, the project life and credit life will both start on the date of project certification. 28 U.S.EPA,Water Quality Trading Policy,68 Fed.Reg.at 1612. 29 Memorandum from David Ross,EPA Assistant Administrator,Water Qua IityTrading Policy to Promote Market-Based Mechanisms for Improving Water Quality,at 3(Feb.6,2019),available at www.epa.gov/sites/production/files/2019- 02/documents/tradi ng-poI icy-memo-2019.pdf. 30 OR.ADMIN.RULES§340-039-0025(5)(f)(B). 31 OR.ADMIN.RULES§340-039-0005(3)("Credit:A measured or estimated unit of trade for a specific pollutant that represents the water quality benefit a water quality trading project generates at a location over a specified period of time,above baseline requirements and after applying trade ratios or any other adjustments.")(emphasis added). 32 See Or.Dep't of Envtl.Quality,City of Medford National Pollutant Discharge Elimination System Waste Discharge Permit,No.100985 (Dec.13,2011);City of Medford,Medford Regional Water Reclamation Facility Thermal Credit Trading Program Plan,at 9(2011), available at http://www.deq.state.or.us/wq/trading/docs/MedfordThermalTrading.pdf. 33 Clean Water Services,Thermal Load Management Plan,available at https://www.cleanwaterservices.org/media/1479/temperature- management-plan.pdf,PDF(February 28,2005). 34 A twenty-year credit life is likely under-representative of the lifetime and values expected from a healthy,diverse,functional riparian forest.See Philip Roni,et al.,A Review of Stream Restoration Techniques and a Hierarchical Strategy for Prioritizing Restoration in Pacific Northwest Watersheds,22 NORTH AMERICAN JOURNAL OF FISHERIES MGMT.1,Tbl.6(2002)(noting that while it usually takes 5-20 years for riparian restoration to achieve response,the benefits of riparian replanting are expected to extend 10-50+years,with a medium to high probability of success). Unlike most investments,the restoration investment underlying Ashland's water quality trading program appreciates over time into a self-sustaining solution,and so the site will likely continue to function beyond the 20-year credit life. 31 Memorandum from David Ross,EPA Assistant Administrator,Water Quality Trading Policy to Promote Market-Based Mechanisms for Improving Water Quality,at 4(Feb.6,2019). City of Ashland Water Quality Trading Plan Page 7 OAR 340-039-0025(5)(b): BASELINE Pursuant to the trading rule, a "trading plan must identify any applicable regulatory requirements from OAR 340-039-0030(1) that apply within the trading area and that must be implemented to achieve baseline requirements." Credits can only be generated from best management practices (BMPs)that result in water quality benefits above trading baseline requirements. Baseline is included within the trading rule to ensure that credits are not used to meet a regulatory obligation by more than one entity at any given time.36 The 2003 EPA Trading Policy states that "pollutant reductions [should be] greater than those required by a regulatory requirement or established under a TMDL."31 In developing its rule, Oregon went one step further and specifically defined "trading baseline" as the "pollutant load reductions, BMP requirements, or site conditions that must be met under regulatory requirements in place at the time of trading project initiation."38 Regulatory requirements that are potentially applicable to trading projects include requirements stemming from NPDES permits, Oregon Department of Agriculture agricultural water quality management area rules, Oregon Board of Forestry rules, federal management plans or agreements between the state and a federal agency, CWA section 401 certifications, local ordinances, tribal laws or rules, compensatory mitigation projects, or any requirements derived from a TMDL by designated management agencies responsible for TMDL implementation.39 Therefore, when Ashland initiates a new trading project, it will assess and document whether any of the baseline requirements described in the rule affirmatively apply to the site(s), and explain how the specific baseline requirements apply(or not)to each individual site. If affirmative requirements do apply to BMP sites, baseline BMPs can be installed or deductions to site thermal benefit totals can be made to ensure that credit is not being taken for actions that otherwise are already required by these regulatory requirements. If no baseline obligations exist at the proposed trading project,the baseline obligation at these sites will be equal to current conditions.40 As part of credit verification, Ashland will evaluate each site to ensure that site-specific baseline requirements have been identified and considered in credit calculation. Below is an overview of how the current potential sources of baseline listed in the trading rule apply in the trading area: (a) NPDES permit requirements Ashland's permit does not require riparian restoration. There are no federal or state temperature technology-based effluent limits (TBELs). (b) Rules issued by Oregon Inland Rogue Agricultural Water Quality Management Program Department of Agriculture for an Rules, OAR 603-095-1400 et seq. OAR 603-095-1440(3)(a): "(a) agricultural water quality Agricultural management of riparian areas shall not impede the management area under OAR development and maintenance of adequate riparian vegetation to chapter 603 division 095 control water pollution, provide stream channel stability, moderate solar heating, and filter nutrients and sediment from runoff. (b)This condition is not intended to prohibit riparian grazing where it can be done while managing for riparian vegetation required in OAR 603- 095-1440(3)(a)." In addition, landowners must avoid excessive soil erosion (OAR 603-095-1440(2)), unnecessary returns from surface irrigation return flows (OAR 603-095-1440(4)) and discharge waste (OAR 603-095-1440(5)). 36 OR.ADMIN.RULES 340-039-0040(2)-(3). 37 U.S.EPA,Water Quality Trading Policy,68 Fed.Reg.at 1610. 38 OR.ADMIN.RULES 340-039-0005(6)(emphasis added). 39 OR.ADMIN.RULES 340-039-0030. 40 Memorandum from David Ross,EPA Assistant Administrator,Water Quality Trading Policy to Promote Market-Based Mechanisms for Improving Water Quality,at 4(Feb.6,2019). City of Ashland Water Quality Trading Plan Page 8 Wow If agricultural management of potential site is actively impeding the development and maintenance of adequate riparian vegetation, or associated with any of the other prohibited conditions, such management practice must stop before credit can be generated. (c) Rules issued by Oregon Board of Will be applied if/when forestry-zoned sites are considered for Forestry under OAR chapter 629 implementation. divisions 610-680 (d) Requirements of a federal land These will be considered on a case-by-case basis, but will not apply management plan, or an unless recruited site is federally or state owned. agreement between a federal agency and the state (e) Requirements established in a Only applies if Ashland is purchasing credits from land managed by Clean Water Act Section 401 water an entity subject to a 401 certification. If such an entity is engaged as quality certification a potential seller of credits, Ashland will review the entity's 401 certification to ensure that the generated thermal benefits are not required by the certification. (f) Local ordinances Jackson County. Land Dev. Ord. § 8.6.4(A) (2020)41: existing vegetation and tree cover"will be retained" on land within 75 feet of the top of the Rogue River bank and within 50 feet of any Class 1 or 2 streams, except in certain narrowly prescribed, regulator- approved situations, including where non-native vegetation may be removed if being replaced with native vegetation.The City of Ashland's land use ordinance includes similar requirements to protect riparian areas, but does not affirmatively require restoration except when offsetting construction activities in protection zones. City of Ashland Land Use Ord. § 18.3.11 (2017).42 Similar provisions exist in the Phoenix, Oregon Land Dev. Code §3.7.2 (2017),43 and the City of Talent, Oregon Municipal Code § 18.3.11 (2020).44 (g)Tribal laws, rules, or permits None that Ashland is aware of as a general matter, but will confirm on site-by-site basis. (h) Other applicable rules affecting None that Ashland is aware of as a general matter, but will confirm nonpoint source requirements on site-by-site basis. (i) Projects completed as part of Ashland will be acting pursuant to its NPDES permit obligations, not compensatory mitigation, or a supplemental environmental project (SEP) or settlement. If a projects required under a permit or potential project site is already hosting a CWA 404 or SEP project, approval issued pursuant to Clean Ashland will have the burden to demonstrate the proportion of the Water Act section 404, or a CWA 402 trading site that is additional, and ensure the mitigation supplemental environmental portion of the project site is excluded from the WQT credit total. project used to settle a civil penalty 41 This document can be found here:https://jacksoncountyor.org/ds/PDFs?Entryld=37627. 42 This document can be found here:www.codepublishing.com/OR/Ashland/#!/LandUse/18.3.11.html#18.3.11.110. 43 This document can be found here:www.phoenixoregon.gov/sites/default/files/fileattachments/building/planning/page/354/pldc.pdf. 44 This document can be found here:https://talent.municipal.codes/-rMC. City of Ashland Water Quality Trading Plan Page 9 imposed under OAR chapter 340 division 012 or the Clean Water Act (j) Regulatory requirements a INLAND ROGUE BASIN LOCAL ADVISORY COMM. &OR. DEP'T OF AGRIC., designated management agency INLAND ROGUE AGRICULTURAL WATER QUALITY MANAGEMENT AREA PLAN 12 establishes to comply with a DEQ- (May 2010)46("Agricultural activities that eliminate the possibility of issued TMDL, water quality natural regeneration of trees and shrubs along waterways are not management plan or another allowed. ... [N]ear-stream riparian management [is limited] to water pollution control plan seasons and practices that enhance growth of grasses, shrubs, and adopted by rule or issued by order trees canopy...... under ORS 46813.015 or 46813.110. OAR 340-039-0025(5)(e): TRADING RATIOS Pursuant to the trading rule, a trading plan must include a "description of applicable trading ratios,the basis for each applicable trading ratio, including underlying assumptions for the ratio, and a statement indicating whether those ratios increase or decrease the size of a credit obligation or the number of credits generated from an individual trading project."The Oregon trading rule requires the use of at least one ratio in a trading plan, and a description of the assumptions underlying the ratio decisions.46 Trading ratios are "a numeric value used to adjust the number of credits generated from a trading project, or to adjust the number of credits that a credit user needs to obtain."47 The 2007 EPA trading toolkit suggests that ratios may be necessary to address a number of factors such as delivery, location, equivalency, uncertainty, and retirement.48 Oregon's water quality trading rule notes that trading ratios may be used to account for attenuation of water quality benefits, pollutant equivalency, BMP performance uncertainties, other types of risk, time lag, priority area incentives, or credit retirements. Depending on the BMP(s) implemented, the applicable ratio(s)will change.To date, in Oregon riparian shade restoration trading programs, DEQ has approved 2:1 trading ratios.49This ratio is meant to account for the temporal lag in thermal benefits between planting (Year 0) and when the planted trees reach full shade- producing heights (Year 20), as well as other uncertainties. Much of the logic supporting this ratio is connected to riparian vegetation growth curves. For example, a growth curve5Ofor Black Cottonwood (Populus trichocarpa)—a native species regularly planted by riparian restoration practitioners in Oregon that has a growth pattern representative of riparian plantings in the area—shows that with average regional conditions, Black Cottonwoods have grown to 9 feet tall after just one year; 23 feet tall after five years; 43 feet tall after ten years; 45 This document can be found here:www.oregon.gov/ODA/shared/Documents/Publications/NaturalResources/ InlandRogueAWQMAreaPlan.pdf. 46 OR.ADMIN.RULES 340-039-0025(5)(e). 47 OR.ADMIN.RULES 340-039-0005(10). 48 U.S.EPA,Water Quality Trading Toolkit for Permit Writers,30-32,EPA 833-R-07-004(Aug.2007,updated June 2009)("There is not set limit for how high a trading ratio can be.Trading ratios depend on the specific circumstances in the watershed"). 49 see Or.Dep't of Envtl.Quality,City of Medford National pollutant Discharge Elimination System Waste Discharge Permit,No.100985 (Dec.13,2011),available at http://www.deq.state.or.us/wq/trading/docs/MedfordNpdesPermit.pdf,Or.Dep't of Envtl.Quality,Clean Water Services National Pollutant Discharge Elimination System Watershed-based Waste Discharge Permit,Nos.101141,101142, 101143,101144 and MS4(draft Apr.2016). so Growth curves(a.k.a.site index curves)are established through observation and measurement of species growth,over time,given specific site conditions.see U.S.Forest Service Pacific Northwest Research Station,PNW-RN-533,Site Index Equations and Mean Annual Increment Equations for Pacific Northwest Research Station Forest Inventory and Analysis Inventories,1985-2001(2002). City of Ashland Water Quality Trading Plan Page 10 and 81 feet tall after twenty years.51 So by year 10, approximately half of the anticipated future thermal benefits will have been achieved at the site, which supports use of a 2:1 ratio.The mix of species and height classes at a particular site makes identification of an exact ratio difficult, and so the 2:1 ratio attempts to conservatively convert overall growth trends, and timelines into an administrative mechanism. In addition to temporal considerations, the trading ratios (both 2:1 and 1.9:1) also account for the uncertainties associated with BMP performance and the benefit modeling, risks associated with restoring natural function to impaired riparian areas, and other unforeseen risks. Ashland will use the typical 2:1 trading ratio for projects implemented after the permit renewal date. For those project sites implemented prior to the issuance of the permit, a trading ratio of 1.9:1 will apply.52 DEQ's 2016 WQT Internal Management Directive contemplates potential ratio reductions associated with taking early action: "[L]ower ratios are appropriate if the permittee is implementing BMPs well in advance of the anticipated compliance obligation or if water quality benefit is delivered in advance of when the credit is needed."53 This approach also aligns with EPA's 2019 update to its trading policy, which "encourages early adoption of pollutant reduction practices ... [to] broaden and strengthen the marketplace for buyers and sellers, resulting in larger scale resource improvements over time."" OAR 340-039-0025(5)(g): MONITORING Pursuant to the trading rule, a trading plan must include a "description of the following: (A) Proposed methods and frequency of trading project BMP monitoring; and (B) Proposed methods and frequency of how water quality benefits generated by a trading project will be monitored." In addition, an entity that engages in trading must submit annual reports that include all of the elements described in OAR 340-039-0017(3). Ashland will submit an annual report that includes all of the elements described in OAR 340-039-0017(3). In addition to submitting that annual monitoring report,Ashland's monitoring schedule is consistent with the Willamette Partnership's February 16, 2016 Performance Standards for Riparian Revegetation (Exhibit C of this Trading Plan).55 Consistent with that protocol, a specific combination of the following three types of monitoring approaches will be applied throughout the life of each riparian restoration project to ensure that the project continues to function as expected as it relates to the performance metrics identified in the document: Quantitative monitoring: project developer implements vegetation monitoring protocol by sampling random plots on site; implements repeat photo monitoring at full set of on-the-ground camera points; reports on full suite of performance standards. Qualitative monitoring: on-site, rapid, but standardized, qualitative review of site condition and progress toward performance metrics accompanied by subset of repeat photos from on-the-ground camera points used in quantitative years.The same set of camera points will be repeated in all qualitative monitoring years. Remote monitoring: remote sensing information to provide visual evidence that site still exists; e.g., a current year aerial image or LiDAR taken during growing season to document site persistence. sl E.B.Peterson et al., B.C.Ministry of Forests,Black Cottonwood and Balsam Poplar Managers'Handbook for British Columbia,Forestry Canada,at 46(1996),available at http://www.for.gov.bc.ca/hfd/pubs/docs/Frr/Frr250.htm. 52 Pre-permit project sites will still have to comply with all requirements in the permit and this Trading Plan. 53 Or.Dep't of Envtl.Quality,Water Quality Trading Internal Management Directive,at 20(updated Mar.31,2016),available at http://www.deq.state.or.us/wq/pubs/imds/WQTradinglMD.pdf. 54 Memorandum from David Ross,EPA Assistant Administrator,Water Quality Trading Policy to Promote Market-Based Mechanisms for Improving Water Quality,at 4(Feb.6,2019). ss Willamette Partnership,Performance Standards for Riparian Vegetation(2016),available at http://willamettepartnership.org/wp- content/u ploads/2014/06/Performance-Stds-for-Rip-Reveg_2016-02-16.pdf. City of Ashland Water Quality Trading Plan Page 11 To remain consistent with Willamette Partnership approaches, Ashland will monitor sites according to the schedule in Table ]: Table 3. Dispersal of monitoring and reporting approaches over the life of a project. IN Remote Monitoring" V/ V/ Quantitative Monitoring V/ V/ Qualitative Monitoring V/ V/ In addition to this standard site monitoring, if projects are damaged by causes beyond the reasonable control of the City(e.g., wildlife, flood, vandalism), Ashland will report that damage to DEQ consistent with the terms of its permit. Ashland will report such incidents to DEQ within 90 days of learning of the damage, and the report will include: 1) a description of the event, including an assessment of the damage; 2) a plan for addressing the damage (natural restoration and/or active replanting of the site is allowed if continued maintenance of the site is expected to provide a reasonable potential for the long term restoration of the shading function of the site in an ecologically appropriate manner; replacement with an alternative site or sites may also be pursued); and 3) a schedule for implementing the remediation plan. Damage to a project due a cause beyond the reasonable control of the City will not in and of itself constitute a violation of its permit, the credits from damaged project sites will remain valid so long as Ashland demonstrates to DEQthat the sites will be restored or alternative solutions will be implemented within a reasonab|etimeframe.This approach is consistent with the approach outlined in the City ofMedford'spermit.sr OAR 340-039-0025(5)(h): TRADING PLAN PERFORMANCE VERIFICATION Pursuant to the trading rule, a trading plan must include a "description of how/the entity will verify and document for each trading project that BMPs are conforming to applicable quality standards and credits are generated asp|anned." The Oregon trading rules require that an entity using trading verify and document that BMPs conform to quality standards, andthatthecreditsaretrackedandmadeavai|ab|eforthepub|ic.sxTobeconsistentw/iththeOre0on 56 In the event that remote information is not available for a monitoring year designated for remote monitoring,the qualitative monitoring approach can instead be used for that year.If this occurs,a later year designated as qualitative monitoring may be monitored remotely so long as that change does not result in more than two consecutive years of only remote monitoring. 570r.Dep't of i Quality,City of Medford National Pollutant Discharge Elimination System Waste Discharge Permit,No.100985, Schedule o(7)(b)(v)(oec.z»'zozz). 58"Credits may be used for compliance with NPIDES permit requirements...once implementation of Bi has been verified as consistent with applicable axxp quality standards accondinatoon.ADMIN.i»40-o»e-0oz*(*)(h).^on.Aom/w.1»40-o»e-0o4o(*). City ofAshland Water Quality Trading Plan Pa0el2 water quality trading rule, Ashland's verification approach conforms to the Willamette Partnership's standards for verification.59 Specifically, after a site has been implemented, a third-party verifier will conduct a full verification review, including administrative review of the site's eligibility, technical review of credit calculation, and confirmation via a site visit that a project has been implemented consistent with the BMP quality standards included in this trading plan. Until a site is "established" (around project Year 5), verifiers will review monitoring reports and attest that the site does not appear at risk of failure. At later milestones in the project (specifically Years 5, 10 and 15), a third-party verifier will confirm that the site is continuing to mature and develop on a trajectory that is materially consistent with the as built site and quality standards. In the years between these milestone verifications, verifiers will continue to review annual monitoring reports and provide attestation that the site does not appear at risk of failure. During Year 20, a third-party verifier will conduct a final verification, including a review of originally estimated credit calculation versus a final credit calculation, a comparison of predicted Year 20 site conditions versus actual Year 20 site conditions, and an on-site visit to confirm that Year 20 quality standards have been met. OAR 340-039-0025(5)(i): TRACKING AND REPORTING Pursuant to the trading rule, a trading plan must include a "description of how credit generation, acquisition and usage will be tracked and how this information will be made available to the public." Transparency is critical to a credible trading program. For programs that involve restoration actions that last decades, a single location that serves as a clearinghouse for site-specific information—including project design documents, annual photo points, monitoring reports, and project performance information—is useful for both DEQ and external members of the public. Ashland will ensure that: 1) individual thermal benefits and transactions are accounted for and can be tracked, 2) program implementation progress can be tracked, and 3) sufficient information is provided related to individual project site trajectory (i.e., annual monitoring reports). Therefore, in addition to completing monitoring (as described above), submitting annual compliance reports and completing performance verification, Ashland will post credit information on a publicly accessible website, registry, or tracking tool in order to disclose project site-and program-level content and project successes. Ashland plans to utilize a third-party environmental credit registry to make this information publicly available.6o Daily credit information will also be reported to DEQ in Ashland's monthly Discharge Monitoring Reports (DMRs). For each implemented and verified site, Ashland will calculate daily load reductions.To ensure that daily thermal credit reporting matches with daily exceedance reporting in the DMR, Ashland will then calculate a seven-day rolling average of thermal credits for each site on each day.Those daily site-by-site 7-day rolling average totals will then be aggregated and reported as a single thermal credit value in the DMR. DMRs are available from DEQ and provide another vehicle for reporting credit acquisition and usage to the public. OAR 340-039-0025(6): ADAPTIVE MANAGEMENT Pursuant to the trading rule, a trading plan must include a "description of how monitoring and other information may be used over time to adjust trading projects and under what circumstances." Significant program 59 Willamette Partnership,Ecosystem Credit Accounting System Third Party Verification Protocol Version 1.0(2009),available at http://willamettepartnership.org/publications/. 60 Ashland will use an environmental credit registry like Markit,which is popular among environmental credit programs.The Electric Power Research Institute(EPRI)tracks the Ohio River Basin Nutrient Trading Program through Markit,as do the City of Medford and Port of St.Helens with their temperature compliance programs managed by The Freshwater Trust.Similarly,the MWMC uses Markit to register its SRF pilot program sites in order to track and report on progress toward achieving program goals,as well as to confirm that projects are in place and meeting quality standards for implementation. City of Ashland Water Quality Trading Plan Page 13 amendments may require public review and comment, but other small changes will fall under the scope of adaptive management.61 Ashland recognizes the importance of long-term maintenance and monitoring of projects in order to ensure overall trading program, specific project success and ecological improvement in program areas.The three-tiered monitoring approach described above will allow for programmatic tracking and evaluation of progress toward thermal benefit needs.The multi-decadal timeframe of the anticipated trading program necessitates the ability to adapt implementation, maintenance, monitoring, and performance tracking practices to reflect new knowledge, technology, and information as it emerges. As technologies, BMP implementation, and monitoring practices evolve, it is expected that more efficient approaches or better knowledge about sources and methods to achieve program goals will also develop. To adapt and improve the program over time, Ashland will conform to a five-year adaptive management cycle. A five-year review cycle provides a regular opportunity to review available data from the previous years of implementation, maintenance, and monitoring, and to incorporate new technologies and lessons learned through previous implementation cycles into BMP quality standards and guidelines, as well as monitoring, maintenance, and performance tracking protocols. Periodic review also affords transparency and quality control. A review period of five years allows enough time to properly evaluate: 1) progress toward overall programmatic goals, as well as 2)the effectiveness of maintenance approaches and monitoring protocols. Data on restoration projects,while limited, also suggests that there is the potential for substantial time lag in measuring the ecological effectiveness of watershed restoration, and so a five-year window provides more flexibility to appropriately collect and analyze these data. OAR 340-039-0040(4): FINANCIAL ADDITIONALITY Ashland received a Clean Water State Revolving Fund (SRF) Sponsorship Loan from DEQ in 2013. As stated in its application, Ashland intended to use a portion of the SRF funds to implement riparian shade projects to help it comply with its expected thermal load limits. Ashland's intent to use SRF funds to reimburse expenses associated with implementing, stewarding and monitoring temperature credit projects is relevant in two ways: financial additionality,62 and project reimbursement eligibility. Many trading programs, including Oregon's, include restrictions meant to ensure that the environmental benefit secured through the sale of a credit is in addition to what would have occurred without it.The Oregon rule specifically states that"credits generated under an approved trading plan may not include water quality benefits obtained with public conservation funds."63 Therefore, the type of money used to purchase or develop credits 61 In the City of Medford permit,DEQ notes that"significant amendments include changes in trading ratio,types of trades or trading metrics(for example,addition of an activity to a riparian shade restoration program that provides cooling or prevents heating but is not measured using a shading metric),or changes to trading parameters(for example,addition of nutrients to a thermal load credit program)."DEQ notes that"DEQ approval and public review is not required for trading agreements,specific project sites,or minor amendments to the program provided they are consistent with the overall direction and objectives of the permittee's DEQ-approved credit trading program."Or.Dep't of Envtl.Quality,City of Medford National Pollutant Discharge Elimination System Waste Discharge Permit,No.100985,Schedule D(7)(a)(i)-(ii)(Dec.13,2011). 62 To be additional,thermal benefits used to meet Ashland's thermal load exceedance should be generated from BMPs funded by and implemented by,or on behalf of,Ashland.BMPs that are currently funded by another source of"public conservation funds"are not considered financially"additional"because they are already occurring.Because these actions would have occurred in the absence of an Ashland trading program,Ashland could not track any of these benefits to count as offsets against its thermal load exceedance.Federal, state or local cost-share funds(e.g.,"public conservation funds") may be used to supplement BMPs that are being funded by Ashland or to help meet baseline obligations.However,public conservation funds cannot be used to generate thermal benefits that would count toward meeting Ashland's ETL excess.In the event that other public conservation funds are used to supplement a thermal benefit- generating restoration project,it is Ashland's responsibility to demonstrate that none of those public conservation funds are used to generate thermal benefits used by the City for compliance. 63 OR.ADMIN.RULES 340-039-0040(4). City of Ashland Water Quality Trading Plan Page 14 does matter.The Oregon rule explicitly defines SRF loan funds as not being "public conservation funds""' meaning that trading projects funded by Ashland with these funds do not run the risk of violating Oregon's financial additionality obligations.65 64 OR.ADMIN.RULES 340-039-0005(4)("Public Conservation Funds:Public funds that are targeted to support voluntary natural resource protection or restoration.Examples of public conservation funds include United States Department of Agriculture(USDA)cost share programs, United States Environmental Protection Agency(EPA)section 319 grant funds,United States Fish and Wildlife Service Partners for Fish and Wildlife Program funds,State Wildlife Grants,and Oregon Watershed Enhancement Board restoration grants.Public funds that are not considered public conservation funds include: public loans intended to be used for water quality infrastructure projects,such as Clean Water State Revolving Funds,USDA Rural Development funds,and utility sewer storm water and surface water management fees.")(emphasis added). 65 EPA regulations are silent on this issue.However,the 2014 statutory amendments to the Clean Water SRF program suggested a strong inclination toward green infrastructure.Relevant to green infrastructure investment under the SRF program,the 2014 Water Resources Reform and Development Act(2014 WRRDA),Pub.L.No.113-121,128 Stat.1193(2014),expanded the list of eligible projects,requires utility recipients of SRF loans to certify that the utility"has selected,to the maximum extent practicable,a project or activity that maximizes the potential for efficient water use,reuse,recapture,and conservation,and energy conservation..."and updated the SRF definitions to incorporate by reference the definition of"treatment works"to include the acquisition of land"that will be an integral part of the treatment process"and for construction. City of Ashland Water Quality Trading Plan Page 15 EXHIBIT A REGULATORY BACKGROUND SUPPORTING TRADING IN OREGON Over the last fifteen years, Oregon has led other states in utilizing innovative methods such as water quality trading to comply with the Clean Water Act (CWA). In 2001,the Oregon Legislature directed the Oregon Department of Environmental Quality(DEQ)to develop a water quality trading program in the Willamette River.' In 2003, the U.S. Environmental Protection Agency(EPA) also published its water quality trading policy (2003 EPA Trading Policy),which describes how point and nonpoint sources can participate in market-based approaches to meet water quality standards at a reduced cost.This policy supports water quality trading as a flexible approach to achieving water quality and environmental benefits that would otherwise not be attained under traditional regulatory approaches.The 2003 EPA Trading Policy explicitly endorsed trading for nutrients and sediment loads, and noted that other constituents can likely be traded if the trades have "the potential to improve water quality and achieve ancillary environmental benefits."z Following the 2003 EPA Trading Policy, in 2004, DEQ issued a permit to Clean Water Services (CWS)that allowed for trading of thermal credits generated from riparian shade projects to assist two publicly owned treatment works (POTWs) in achieving NPDES permit compliance, and that allowed for the POTWs to generate thermal credits by releasing cold water from an upstream reservoir in order to satisfy the permittee's thermal obligation. Based on this applied experience, in 2007 and again in 2009, DEQ developed an Internal Management Directive (IMD) meant to help agency staff structure trades in NPDES permits.This expanded guidance coincided with additional guidance from EPA, including a 2007 toolkit for permit writers. In 2011, DEQ issued a permit to the City of Medford that allows for thermal trading between Medford's POTW and nonpoint sources that create thermal credits through riparian shade projects. After ten years of experience with trading in the state, DEQ sought to formalize the lessons learned on trading. In 2013, EPA Region 10 joined water quality staff from Oregon, Idaho, and Washington, as well as other stakeholders, in a series of interagency workshops to study the existing water quality trading policies, practices, and programs from across the nation.The ultimate goal of this "Joint Regional Recommendations on Water Quality Trading" (JRR) undertaking was to build on lessons from other trading programs and make recommendations that would ensure future trading programs had "the quality, credibility, and transparency necessary to be consistent with the Clean Water Act." The end result of this endeavor was a non-binding recommendations document meant to help foster the efficient and consistent development of robust trading programs in the region.3 This effort was then taken to the national level through the "National Network on Water Quality Trading",which ultimately produced an "Options and Considerations" document outlining the major items to consider when developing a trading program.4 Based in large part on the knowledge gained from these experiences, Oregon began crafting water quality trading regulations in 2014. In December 2015, after a year of comprehensive deliberation and stakeholder 1 OR.REV.STAT.§468B.555 2 U.S.EPA,Water Quality Trading Policy,68 Fed.Reg.1608,1610(Jan.13,2003),available at https://www.gpo.gov/fdsys/pkg/FR-2003- 01-13/html/03-620.htm. 3 Willamette Partnership&The Freshwater Trust,Draft Regional Recommendations for the Pacific Northwest on Water Quality Trading (2014),available at http://willamettepartnership.org/our-stories/regional-recommendations-water-quality-trading/. 4 National Network on Water Quality Trading,Building a Water Quality Trading Program:Options and Considerations(2015),available at http://willamettepartnership.org/wp-content/uploads/2015/06/BuildingaWQTProgram-NNWQT.pdf. Regulatory Background Supporting Trading in Oregon Page 1 engagement, the Oregon Environmental Quality Commission (EQC) unanimously approved water quality trading rules (OAR 340 Division 039), which clarified the basic requirements of a viable trading program in Oregon. In March 2016, shortly after the EQC adopted the water quality trading rules, DEQ updated its IMD to complement the management directive and the changes brought about by the new rules. The trading plan proposal for the City of Ashland is consistent with the rules and the intent of the updated 2016 water quality trading IMD. CONSISTENCY WITH WATER QUALITY TRADING PURPOSE AND POLICY O 140-039-0001 Purpose and Policy "(1) Purpose.This rule implements ORS 46813.555 to allow entities regulated under the Clean Water Act to meet pollution control requirements through water quality trading.This rule establishes the requirements for water quality trading in Oregon. (2) Policy.The Oregon Department of Environmental Quality may approve water quality trading only if it promotes one or more of the following Environmental Quality Commission policies: (a) Achieves pollutant reductions and progress towards meeting water quality standards; (b) Reduces the cost of implementing Total Maximum Daily Loads (TMDLs); (c) Establishes incentives for voluntary pollutant reductions from point and nonpoint sources within a watershed; (d) Offsets new or increased discharges resulting from growth; (e) Secures long-term improvement in water quality; or (f) Results in demonstrable benefits to water quality or designated uses the water quality standards are intended to protect." Ashland's water quality trading plan is consistent with several EQC policies articulated in the rule. Ashland's trading plan helps to establish voluntary incentives for nonpoint sources to reduce thermal loading within the Bear Creek watershed.' In addition, unlike traditional technological solutions for treatment facilities, the restoration investment underlying Ashland's water quality trading program will appreciate over time into a self- sustaining solution,6 which helps secure long-term improvements in water quality. Moreover, in addition to creating cooler, shaded spaces in the river for fish,Ashland's trading solution will directly advantage beneficial uses in the watershed by supporting the recruitment of large wood that supports salmonid spawning, rearing and migration habitat.' In addition to these benefits, Ashland's trading plan is also likely to improve functional habitat for macro-invertebrate life, provide year-round shading of the waterbody (beyond the time periods when the restored ecosystem will provide shade credits), help minimize nutrient inputs, result in some floodplain restoration, and help control erosion.' In addition to promoting several of the EQC policies articulated in the rule,Ashland's trading solution will likely help to foster a sustainable local economy.9 Riparian plantings require a local workforce (excavators, operators, equipment suppliers, contractors, and maintenance and restoration professionals), plant stock and supplies are typically purchased from local nurseries, and project site leases provide an important income stream to local landowners. On average, 62 cents of every dollar spent on restoration has been shown to stay in the local rural economy, and every$1 million spent on riparian restoration creates approximately 23 jobs.10 In addition,trading 5 Ashland expects that some portion of its projects will be installed on private nonpoint source land.Ashland envisions that those landowners will be incentivized to participate in the program through financial mechanisms,including lease payments. 6 The solution is"self-sustaining" because,for example,when a mature tree naturally falls(itself an ecosystem-benefiting event),riparian vegetation and/or another tree will naturally grow in its place,thus allowing the solution to function even in the absence of human intervention—something that is not possible for built solutions that require maintenance to function over time. 'Montgomery,D.R.,Collins,B.D.,Buffington,J.M.,&Abbe,T. B.Geomorphic effects of wood in rivers,37 Ecology and Management of Wood in World Rivers,21-47(2003). 8 See M.D.Tomer&M.A.Locke,The Challenge of Documenting Water Quality Benefits of Conservation Practices:A Review of USDA-ARS's Conservation Effects Assessment Project Watershed Studies,64 WATER SCIENCE&TECHNOLOGY 300,303(2011)(noting nutrient and erosion benefits of buffers);Scott W.Miller et al.,Quantifying Macroin vertebrate Responses to In-Stream Habitat Restoration:Applications of Meta-Analysis to River Restoration,18 RESTORATION ECOLOGY 8,8(2010)(noting benefits of heterogeneous riparian habitat). 9 CITYOF ASHLAND,CLIMATE&ENERGYACTION PLAN(Jan.2017). io Nielsen-Pincus,M.,&Moseley,C.The Economic and Employment Impacts of Forest and Watershed Restoration.21(2)Restoration Ecology,207-214,212(2013). Regulatory Background Supporting Trading in Oregon Page 2 yields energy use savings compared to technological solutions that require energy to operate—which reduces the release of airborne greenhouse gas pollutants and also aligns with Ashland's climate mitigation and adaptation goa Is." CONSISTENCY WITH WATER QUALITY TRADING OBJECTIVES O R 340-d 19-ddd 1Water Duality Trading Objectives "Water quality trading authorized under this rule must: (1) Be consistent with anti-degradation policies; (2) Not cause or contribute to an exceedance of water quality standards; (3) Be consistent with local, state, and federal water quality laws; (4) Be designed to result in a net reduction of pollutants from participating sources in the trading area; (5) Be designed to assist the state in attaining or maintaining water quality standards; (6) Be designed to assist in implementing TMDLs when applicable; (7) Be based on transparent and practical Best Management Practices (BMPs) quality standards to ensure that water quality benefits and credits are generated as planned; and (8) Not create localized adverse impacts on water quality and existing and designated beneficial uses." (1,Z 4)Anti-degradation&Net Reduction in Pollutant Loading Oregon's anti-degradation policy is found in OAR 340-041-0004. As stated in the 2016 Oregon water quality trading IMD, Oregon's anti-degradation policy generally prohibits the lowering of existing water quality.12 In the 2003 EPA Trading Policy, EPA states that it "does not believe that trades and trading programs will result in 'lower water quality' as that term is used in 40 CFR § 131.12(a)(2) ... when the trades or trading programs achieve a no net increase of the pollutant traded and do not result in any impairment of designated uses."13 In line with the 2003 EPA Trading Policy, the 2016 water quality trading IMD instructs DEQ staff to ensure that trades are designed to result in a net reduction of pollutants in the trading area as required in OAR 340-039- 0003(4). In addition to ensuring this outcome, as described in the next subsection, it will be necessary to avoid localized impacts to designated uses. (8)Avoidance of Localized Impacts on Fish The cold water protection criteria in the Oregon water quality standards restricts the amount of warming above ambient conditions during spawning use periods. Because threatened salmonid species inhabit Bear Creek and the water body is designated as critical habitat, the cold water protection criteria in OAR 340-041-0028(11) apply. According to the 2008 DEQTemperature Water Quality Standard Implementation IMD, the cold water protection criteria must be met at the location of the nearest physical spawning habitat downstream of the outfall, not at the edge of the mixing zone.14 With the proposed relocated outfall into Bear Creek, complete mixing with the receiving stream flow is expected before the thermal plume reaches downstream spawning areas.15 The outfall relocation study selected an area of Bear Creek for the relocated outfall that is mainly bedrock and not suitable for salmonid spawning and the closest documented spawning is 1.3 miles downstream from the relocated outfall site. "CITY OF ASHLAND,CLIMATE&ENERGY ACTION PLAN (Jan.2017).In addition to reducing greenhouse gas emissions,restoration advances the Clty's goals of becoming carbon neutral and Increasing the local ecosystem's resiliency to climate change.See also CITYOF ASHLAND,FINAL COMPREHENSIVE WATER MASTER PLAN(Apr.2012). 12 Or.Dep't of Envtl.Quality,Water Quality Trading Internal Management Directive,at 9(updated Mar.31,2016),available at http://www.deq.state.or.us/wq/pubs/imds/WQTradinglMD.pdf. 13 Trading IMD,at 9(quoting U.S.EPA,Water Quality Trading Policy,68 Fed.Reg.at 1611). 14 Or.Dep't of Envtl.Quality,Temperature Water Quality Standard Implementation—A DEQ Internal Management Directive,§3.8(2008),available at http://www.deq.state.or.us/wq/pubs/imds/Temperature.pdf. 11 CH2M Hill,Ashland WWTP Outfall Relocation Study,Section 4.4.3(August 2017). Regulatory Background Supporting Trading in Oregon Page 3 DEQ can only approve Ashland's potential trading program, a far-field mitigation action,16 if Ashland's discharge does not cause near-field thermal plume impacts on salmonids prohibited under OAR 340-041-0053(2)(d).17 According to analysis completed by CH21VI Hill, effluent discharged to Ashland Creek currently does not comply with the thermal plume regulations.18 However, Ashland plans to achieve compliance with the thermal plume limitations by relocating the outfall to Bear Creek. During NPDES permit renewal, DEQ evaluated the impact of Ashland's discharge to Bear Creek pursuant to the thermal plume limitations established by OAR 340-041- 0053(2)(d). DEQ found that effluent will not impair active salmonid spawning in Bear Creek because there is no suitable spawning habitat within the mainly-bedrock mixing zone. Additionally,the Bear Creek TMDL contains thermal wasteload allocations (WLA) during the spawning season that will ensure protection of salmonid spawning further downstream of the mixing zone.Therefore, the ETL limits that will be incorporated in the NPDES permit will ensure that impairment of active salmonid spawning areas downstream of the proposed outfall will be prevented or minimized. DEQ also found that monitoring data demonstrated effluent temperatures were consistently below the thresholds that could cause fish to experience acute impairment, instantaneous lethality,thermal shock, or migration blockage during applicable months.19 DEQ concluded that no further thermal plume effluent limits will be needed to resolve near-field thermal impacts from the discharged effluent.20 Far-field thermal impacts, i.e. ETL exceedances, cannot be mitigated by outfall relocation, and will instead be addressed through water quality trading as detailed in this trading plan.21 Reciprocally, water quality trading may only be used to comply with ETL limits; trading cannot be utilized for compliance with thermal plume provisions. (3) Consistent with Local,State, and Federal water quality laws The proposed trading program is consistent with Oregon's anti-degradation policy, localized impact regulations, the Bear Creek watershed temperature TMDL, baseline regulations (described in detail later in this proposal), and the Oregon trading rule. In addition, all project work will be completed in accordance with applicable local, state,tribal and federal permit requirements. When the trading plan is incorporated into Ashland's NPDES permit,the expectation is that it will be done so consistent with the Clean Water Act. (5,6)Designed to Assist State in Attaining Water Quality Standards and Implementing a TMDL The 2007 Bear Creek watershed temperature TMDL allocated Ashland a WLA of 0.1°C above the applicable criteria in Ashland Creek as well as at the point of maximum impact.22 Ashland expects its discharge to exceed its thermal WLA(as well as its thermal load limit, once it has a thermal limit in a renewed NPDES permit). Ashland plans to rely on trading, among several other solutions, to address its thermal WLA exceedance.Therefore, 16 See OR.ADMIN.RULES 340-039-0003(5)-(6). 17"Temperature mixing zones and effluent limits authorized under 340-041-0028(12)(b)will be established to prevent or minimize the following adverse effects to salmonids inside the mixing zone:(A) Impairment of an active salmonid spawning area where spawning redds are located or likely to be located.This adverse effect is prevented or minimized by limiting potential fish exposure to temperatures of 13 degrees Celsius(55.4 Fahrenheit)or more for salmon and steelhead,and 9 degrees Celsius(48 degrees Fahrenheit)or more for bull trout; (B)Acute impairment or instantaneous lethality is prevented or minimized by limiting potential fish exposure to temperatures of 32.0 degrees Celsius(89.6 degrees Fahrenheit)or more to less than 2 seconds); (C)Thermal shock caused by a sudden increase in water temperature is prevented or minimized by limiting potential fish exposure to temperatures of 25.0 degrees Celsius(77.0 degrees Fahrenheit)or more to less than 5 percent of the cross section of 100 percent of the 7Q10 low flow of the water body;the Department may develop additional exposure timing restrictions to prevent thermal shock;and(D)Unless the ambient temperature is 21.0 degrees of greater,migration blockage is prevented or minimized by limiting potential fish exposure to temperatures of 21.0 degrees Celsius(69.8 degrees Fahrenheit)or more to less than 25 percent of the cross section of 100 percent of the 7Q10 low flow of the water body." 18 CH2M Hill,Ashland WWTP Outfall Relocation Study,Section 4.4.3(August 2017). 19 Or.Dep't of Envtl.Quality,DRAFT NPDES Permit Renewal Fact Sheet—City of Ashland,Section 3.2.7.2,Thermal Plume OAR 340-041- 0053(2)(d)(March 2021). 20 Draft NPDES Permit Renewal Fact Sheet,Table 3-12:Outfall 002 Thermal Plume Effluent Limit. 21 Pre-permit shade projects will in no way violate cold water criteria or thermal plume regulations.Therefore,this regulatory cluster will not apply to the City until Ashland receives a thermal limit in its NPDES permit,and the trading plan is incorporated into its permit. 22 Or.Dep't of Envtl.Quality,Bear Creek Watershed Total Maximum Daily Load,Section 2,Temperature TMDL,at 46(2007). Regulatory Background Supporting Trading in Oregon Page 4 trading is designed to assist Oregon in implementing the Bear Creek Temperature TMDL,which outlines the informational pathway to attaining temperature water quality standards." (7)Based on transparent and practical BMPs quality standards The proposed BMP quality standards are described in the body of the trading plan. 23 TMDLs are"primarily informational tools"that"serve as a link in an implementation chain that includes federally regulated point source controls,state or local plans for point and nonpoint source pollutant reduction,and assessment of the impact of such measures on water quality,all to the end of attaining water quality goals for the nation's waters."Pronsolino v.Nastri,291 F.3d 1123,1129(9th Cir. 2002). Regulatory Background Supporting Trading in Oregon Page 5 Exhibit B City of Ashland Water Quality Trading Area r yWG Bear Creel( River Mile 4.0 + o l/f i a r r � ,r � !lr:,;„. ;.- 1 r „ - u /f°l� �,,;' z ;,.� �;, <jf f ✓ ,;�ri�if 1 i0 J'V /� .��y,��; ',U Y r�� JI�I i i !./� / a -61) F "t7 r �r� r, �,,x ,., lr�i,, „`., ,,, 4f ;d��� ",.a�, ,. ,, -,^ � � !°�' �y r`„ f f i,r� ii✓�� ���� r, �„�r(%// 9rrf1 //ni�' r '; -���/p , 7! Jrr ,i�;i �;�k �^� ,Brio ;M r ',.✓^""' j,y y k'' Ili r 1; '- 'lll G � r r� ,,,. ,q IJ r�.'fIl �� ����:;✓ 7� I�l�� � !V� �;,r ien,�, �m'4°';m�� i�; %l/ � rr�� i rill�1^�f�`%i� /�y%' r '�' �� %Oi i ,r ,,h R� �, ,it S � /f/i; / "r�!;d��'r1// ;r ti + ;;tr /'„ ,r, v'•' 1>/ i ���� „rr/i� ,.;'.! '!! r Jri /' iII�✓ %�h/ f 9 / Jrl,,,''?�'% lr%%�� 1 �✓,/ r I ;J I ,�,� 1 r h ��( l� 1 f,,," r r „�;" ,` '�r,�� r � �i I'�,,,. i f i`ie� + lit d�r/ � f%1V`�� i �y+/�j f��:% '»°i l�i��f/l•'� �,r, rr 5 Ashland Water Quality Trading Area, Map V Stream Trading Area °r,I01Jl)��'�¢ w telrshed �I' ',gym bur lit z r 1 ' o9J7% ,�, 'l ,�'�`�`,"'� r rwo`�"�;'i� �l o��f t I" hI, ,R I, ✓. f Exhibit C Willamette Partnership Performance Standards for Riparian Revegetation OtINIF9 WILLAMETTE PARTNERSHIP Performance Standards for Riparian Revegetation February 16, 2016 INTRODUCTION The following is intended to serve as revised performance standards (Section 1) and recommendations(Appendix A) for riparian restoration projects generating credits under the Willamette Partnership Ecosystem Credit Accounting System. The original standards were developed through collaboration with riparian restoration experts in the Willamette and Rogue Basins and have since been applied in those watersheds, as well as Oregon's John Day and North Coast watersheds. The standards have continued to evolve between their first application in 2011 and presently in 2016. Through that time, additional input and review was solicited from entities that operate throughout Oregon representing expertise in agricultural production, riparian restoration, and mitigation. In 2015, Willamette Partnership engaged in robust discussions regarding how to more efficiently achieve a high level of confidence regarding riparian site condition through the use of revised performance standards. The metrics in this performance standard were selected to achieve four key criteria: 1) Science-based and credible; 2) Transparent and replicable; 3) Efficient and practical to apply; and 4)Applicable to a range of environmental conditions. These revised performance criteria have been informed by reference site data from higher-quality riparian forests in multiple watersheds across Oregon, representing a range of ecoregions and precipitation patterns. Metric selection was also informed by experience monitoring credit-generating riparian revegetation projects in accordance with Willamette Partnership's 2011 draft riparian performance standards, review of relevant literature, and comparison to other riparian revegetation monitoring standards and programs. Documentation for the revisions incorporated herein is available upon request.Alternate criteria will be considered where supported by robust documentation of reference site conditions. I PERFORMANCE STANDARDS FOR RIPARIAN REV G TATION PROJECTS GENERATING CREDITS A. DEFINITIONS Canopy Closure': Canopy closure is an upward-looking point estimate of the coverage of a forest canopy, and may be measured in the field with a spherical densiometer(also called a mirror optometer) or by analyzing upward- looking hemispherical photographs. Page 1 Cover(or Absolute Cover)': Cover is a downward-looking measure of the percentage of the ground surface covered by living plant leaves and stems. Areas not covered by vegetation are counted as unvegetated substrate. Total cover may be greater than 100% if species are present in multiple strata (i.e., tree, shrub and herbaceous layers). Cover(Canopy): Absolute cover as viewed from above tree height. Cover(Native Shrub and Vine): Absolute cover as viewed from beneath tree height. Hydrologic zones2: Hydrozones, or hydrologic zones, are areas of relatively homogenous flood frequency, water table height, patterns of water transfer, and other hydrological characteristics, particularly those that affect plants. Invasive Species: A plant species should automatically be labeled as invasive if it appears on the current Oregon Department of Agriculture Noxious Weed list, plus known problem species including Mentha pulegium (pennyroyal) and Elaeagnus angustifolia (Russian Olive). Project year: Project year is measured as the number of completed growing seasons following initial verification, starting at O.For example, where plantings are installed in the winter, the following fall would be considered the beginning of project year 1, because the plantings have gone through 1 spring and summer growing season. Sampling: Data will be collected using a standard random sampling method. Radial plots, rectangular plots, and belt transect methods are acceptable. Shrub3: A perennial woody plant that is usually multi-stemmed and normally grows to heights of 16 feet or less. Tree3: A perennial woody plant, usually with a single stem or few stems, that normally grows to a height greater than 16 feet. Vine3: A twining or climbing plant with relatively long stems. Vines may be herbaceous or woody. B. PROJECT DESIGN 1. A project area includes the entire area, geospatially delineated, for which the Project Developer seeks shade credit. Project areas must border a river or stream with perennial flow.4 2. The Project Developer shall characterize reference sites to support project design. ' Jennings, Brown,and Sheil. 1999.Assessing forest canopies and understory illumination: canopy closure,canopy cover,and other measures. Forestry,Vol. 71, No.1, pp-59-73. 2 Chen et al. 2010.GIS-based Spatial Hydrological Zoning for Sustainable Water Management of Irrigation Areas. International Environmental Modelling and Software Society(iEMSs)2010 International Congress on Environmental Modelling and Software Modelling for Environment's Sake, Fifth Biennial Meeting, Ottawa, Canada. 3 Definitions from USDA, http://plants.usda.gov/growth_habits_def.html. 4 The ecological value of intermittent systems and their contribution toward watershed health is recognized; however, at this time,Willamette Partnership is not able to reflect the inherent ecological diversity in intermittent stream systems. Furthermore,Willamette Partnership is not aware of a method for developing reference sites for intermittent streams. Page 2 a. Reference Site Selection Requirements: i. Reference sites must be located within the same Fifth Field HUC (HUC5)' and be within 50%of the elevations of the highest and lowest anticipated project areas.b ii. As possible, reference sites should be consistent with the soils and/or substrate, hydrology, and geology of the project site. iii. Reference sites should support either a naturally regenerating or established appropriate vegetative community within the active riparian area of a river or stream, including the area within 75 feet of the river or stream, or otherwise to best reflect hydrozones at the site. iv. The reference site must extend over at least 10,000 contiguous square feet (0.23 acres) and be representative of the typical vegetation and substrate. V. Reference site riparian communities must support at least 5 native woody species, and trees must have an average minimum height of at least 10 feet, unless the typical mature plant community for the setting and substrate is documented otherwise. vi. Total cover of invasive species should not exceed 20%. vii. A minimum of two reference sites is required for each HUC5 in which projects are located.7 The Project Developer must detail its reference site search and selection protocol, the process it went through in seeking references sites consistent with all of these criteria, and note how the best suitable sites were selected. If the Project Developer is unable to find a reference site consistent with all of these criteria, Willamette Partnership will approve use of alternate criteria where justified and documented. b. Reference site data collection: The Project Developer must collect reference site data and identify site locations, as well as plots or transects where applicable, using GPS or GIS and a representative photo. Data from each survey must be maintained and made available upon request, and summary data should be provided in the Project Design. Data collected must include the following information for each reference site, at a minimum: • GPS coordinates and datum; • data collection date(s); • collector name; • percent cover of native shrubs and woody vines, by species;' or stem density of native shrubs and woody vines; • density of trees; • percent canopy cover or closure; • percent cover invasive woody species; • percent cover invasive herbaceous species; • woody plant species list; and • invasive species list and relative abundances. The Sample Riparian Revegetation Monitoring Protocol(Appendix A. Section 3) and an associated Sample Monitoring Data Collection Form (available upon request) are provided as examples illustrating appropriate protocols for collecting data on reference conditions. Willamette Partnership understands that monitoring procedures will vary to suit the needs of each project or program. Additional examples of monitoring protocols can be found in the Willamette Partnership Stewardship and Monitoring Plan Example, available at http://willamettepartnership.org/market- 5 www.oregon.gov/DSUPERMITS/docs/huc5.pdf. b This range is calculated as(lowest elevation—(lowest elevation*0.5))through (highest elevation + (highest elevation*0.5)). Reference sites may be used for multiple restoration projects within the same HUC5. s Including at least all species with cover>5%. Page 3 tools-rules/water-quality. If a Project Developer elects to use their own protocol, it should be made available to Willamette Partnership upon request. 3. Planting a. Base plantings on reference site and professional judgment: Plantings must be based on appropriate plant community determined by local reference sites. It is understood that Project Developers will also take into account conditions and species present at a restoration site and utilize their professional judgment when developing a site-specific planting plan. b. Use local plant stock if available: Unless otherwise unavailable, the Project Developer should use only woody plant materials grown from seed, cuttings, or other plant materials collected from natural populations growing within either the WWETAC Provisional Seed Zone for Conifer and Shrub Species'or the EPA Level III Ecoregion10 containing the project area(s). Seed collection at extreme elevation should be avoided. C. PERFORMANCE STANDARDS 1. Monitoring: The Project Developer shall submit monitoring reports that describe site condition, management actions taken, management actions anticipated, and overall progress toward the performance criteria below on an annual basis, or as described in the General Crediting Protocol. Sample monitoring reports are available upon request. 2. Performance Criteria: At the end of the 5th, loth, 15th, and 20th project year, collected data must demonstrate that the project area meets the performance criteria shown in Table 1 below. Alternate project performance criteria will be considered where supported by robust documentation of reference site conditions. Review and approval of alternate criteria by Willamette Partnership and appropriate experts approved by Willamette Partnership should occur prior to initial project verification. l.alble 1. i.erfolrumnance Criteria For Riparian If1aintiinQ'Is Performance criteria Criteria Year 5 Year 10 Year 15 Year 20 EITHER: Meets or exceeds 80% of the native 70% of the native Same as 1) Mean stem 1600 live native woody stem woody stem performance criteria density of native woody stems per density identified density identified for year 15 shrubs and woody acre at the end of the at the end of the vines" fifth growing fifth growing season season OR 2) Site average for combined native Site average for combined native shrub and woody vine cover>_ 25% shrub and woody vine cover %canopy closure N/A N/A >_ 25% or cover 'The USDA's Western Wildland Environmental Threat Assessment Center(WWETAC) is in Prineville,Oregon, www.fs.fed.us/wwetac/. 10 www.epa.gov/wed/pages/ecoregions/level iii iv.htm. 11 Mean woody stem density is determined by counting all live woody stems taller than six inches(regardless of vigor) by species within reference sites. Count multi-stem species(e.g., Symphoricarpos, Rosa) as one stem per square foot(1'x 1'). Page 4 Native trees/acre (Dry ecoregions)">_ 50 trees/acre None > 100 trees/acre 13 (Wet ecoregions) Number of native woody species At least 5 native woody species present Invasive woody No greater than 20% cover invasive herbaceous species and herbaceous No greater than 10% cover invasive woody species cover Non-native woody Take and document actions reasonably necessary to evaluate the risk posed to project and herbaceous site by non-native species, where they are problematic (e.g., Phalaris arundinacea cover (Reed canary grass), Hedera helix(English ivy), Ilex aquifolium (English holly)), taking the steps necessary to control those non-native species such that their presence does not prevent the successful establishment and propagation of native ecosystem characteristics and functions. This includes monitoring and reporting % cover of such species.14 1z For the purposes of this performance standard, EPA Level III ecoregions in Oregon that are considered to be "dry": Klamath Mountains, Blue Mountains, East Cascades,Columbia Basin, Northern Basin and Range. 13 EPA Level III ecoregions in Oregon that are considered to be "wet":West Cascades,Willamette Valley,Coast Range. 14 In particular,this standard is intended to address Phalaris arundinacea. P. arundinacea was considered for inclusion as an invasive species;however,given its pervasiveness in western Oregon and the evolving nature of science regarding its role in riparian function,Willamette Partnership has chosen to forego development of a quantitative standard at this time with the intention to reconsider its status within the standards by 2020. Page 5 APPEN0x/\. VOLUNTARY GUIDANCE AND RECOMMENDATIONS FOR R|PAR|AMREVEGETAF|{JM 1. CONSIDERATIONS FOR SUCCESSFUL RIPARIAN REVEGETATON The following recommendations are based on the experience of riparian restoration professionals from Clean Water Services in Oregon's Tualatin River basin. A. Hydrology: Consider the frequency and duration nf water inundation and groundwater influences. Divide the planting area into hydrologic zones based on elevation and flood period. Most sites include one or more of the following planting zones with respect to hydrology during the growing season: Toe (Wet) standing or flowing water/nearly constant saturation, anaerobic soils; Bank and 0verbank(K4oisU periodically saturated, anaerobic and/or aerobic soils; Transition (Dry) infrequent inundation/saiu ration, if any; aerobic soils. B. Unless soils and/or site substrate is heavily compacted, tilling and disking disturb soils and are generally unnecessary for successful revegeiation and may even encourage colonization by invasive species. C. Weeds Consider site preparation and future maintenance needs in light of characteristics of current vegetation. Consider the current and potential influences of areas surrounding site (e.g., the introduction of propagules of non-native species) and select boundaries and all-season access points that facilitate maintenance. U. To the extent possible, all plant seed and material should be procured from nurseries that use sustainable practices defined by organizations like Salmon Safe, Food Alliance, NRCS, etc. NRCS Plant Materials Centers" provide resources to guide selection of plant materials. One to two-year old bare root seedlings yield excellent results at most sites. Bare root or containerized plants may be used, but the cost of transporting and planting containerized stock is typically higher. Cuttings from native Salix, Populus, Comus, Spiraea, Lonicera, and other species can effectively supplement bare root plantings. Sa/ix, Poou/us, and Comus sericea will be most appropriate on steep streambanks. Consider genetic diversity amongst cuttings, repeated cuttings from the same individuals may not provide the same benefits in terms of habitat and resilience in the plant community. Native grass and forb seed can help with erosion and weed control. Small-stature native grasses are recommended to prevent excessive competition with planted trees and shrubs for moisture and sunlight. Bare root seedlings should be protected from freezing and drying during transport and planting. E. Planting in curved rows at regular spacing intervals can facilitate maintenance. Planting season with bare root plants typically lasts from late January to mid-March in Western Oregon. Fall and spring plantings are also possible if using containerized stock. Plan to intepp|antai approximately 25 percent of original planting numbers in project year two. When considering plantings in the zones below the ordinary high water and on point bars, take into account the geomorphic processes of the stream or river system, as plantings in this area may disrupt sediment transport processes aithe site and downstream. They are also at high risk of loss from scour. F. Consider potential for herbivory by beaver, nutria, deer, elk and voles. Select species and orient planting to reduce losses. In grassy areas, consider spring ring spray for vole protection and moisture conservation. Voles will not likely girdle plants unless they are under the cover of grass. In areas with beaver activity, provide sufficient food supplies (willow) near den and slide access areas to concentrate herbivoryactiviiy. Consider supplemental plant material stocking during the fall months, when beaver are most active in rebuilding structures. Some professionals choose to protect existing large trees with a min 4' welded wire (or higher if site `y hup://www.nrco.uo6a.gov/wpx/porta|/nrco/main/p|antmatoria|o/pmc/ Page G. Maintenance: Visit site regularly. During site establishment, minimum maintenance on most sites includes one spring ring spray, one summer mow or cut and one fall spot spray. In irrigated riparian areas, with water rights, irrigation may be an appropriate option during the first two years. The need for irrigation can usually be avoided in a typical summer with proper plant selection and placement and good grass control (e.g., moisture conservation ring spray) around plants. In some locations, a 25% inter-plant of lost plants in project year two may be more cost- effective than irrigation. H. Woody plant density recommendations: Although woody plant stem densities vary widely among Oregon plant communities, and should be confirmed through reference site data, the recommended range for planting on Willamette Valley riparian areas is between 2,000 and 2,600 stems per acre. Sample formulae for calculating densities are as follows: Tree stems = square footage of planting area x 0.01 Shrub stems = square footage of planting area x 0.05 These formulae are intended to be used as a guide and stem density should be modified to reflect site conditions, localized reference conditions, restoration objectives, and target plant community types. For example, these values may need to be adjusted downward for low precipitation areas, local conditions may dictate planting density, or planting density may vary within the site. 2. SAMPLE REFERENCE SITE DATA COLLECTION PROTOCOLS Using the Reference Site Data Form (available upon request), collect data using a standard sampling methodology. At a minimum, radial plots, rectangular plots, and belt transect methodologies are acceptable. • Radial Plots: Plots located at random to represent the reference sites. Location of plots should not be intended to maximize or minimize any particular metric. Random plot locations may be generated using GIS or other methods. Plots that fall within a stream or pond may be moved landward in a direction perpendicular to the stream or pond edge. Plot relocations and unique conditions should be noted on the data forms. • Rectangular Plots: Rectangular macroplots with the long end oriented perpendicular to the stream (and crossing all the hydrozones). • Belt Transects: 1 m or wider belt transects oriented perpendicular to the stream and covering the entire riparian corridor within reference sites, as described in Roegner, G.C. et al. 2008.16 Count all live woody stems taller than 6" (regardless of vigor). Count multi-stem species(e.g., Symphoricarpos, Rosa) as one stem per square foot (1' x 1'). Estimate cover of native woody species, non-native woody species, invasive woody species, native herbaceous species, non-native herbaceous species, invasive herbaceous species, and unvegetated substrate within reference site plots or transects to the nearest 5%. Cover is defined as absolute cover and is measured as the percentage of the ground surface covered by living plant leaves and stems when viewed from above. Areas not covered by vegetation are counted as unvegetated substrate. Cover may be greater than 100% if species are present in multiple strata (i.e., tree, shrub and herbaceous layers). Indicate 'T' for Trace for species that cover less than 5%of the plot. Reference Site Data Summary The Project Developer should summarize reference site plot data for each program area or basin. In cases where alternate project performance criteria are being considered, this information will help establish the minimum revegetation standards against which the project(s) will be evaluated by the Verifier at the end of the fifth growing season following planting. The following table provides an example. 16 Roegner, G.C. et al. 2008. Protocols for Monitoring Habitat Restoration Projects in the Lower Columbia River and Estuary. Available at: http://www.pnI.gov/main/publications/external/technical reports/PNNL-15793.pdf. Page 7 Project Developer: Date: Collected by: HUC 5 (10 digit): Number of reference sites: Reference site locations 1 2 3 Latitude and longitude or address, attach ma Elevation: Size: Number of reference lots or transects: Number of native woody species Reference sitephotos: Attachphotos Min Max Mean Woody stem density/plot or transect; OR Combined native shrub and woody vine cover Native trees/acre Canopy cover or closure N Invasive herbaceous species cover(%) Invasive woody species cover(%) 3. SAMPLE RIPARIAN REVEGETATION MONITORING PROTOCOL The following method, which focuses on methods for measuring native woody stem density and native and invasive species cover, is for informational purposes. Additional examples of monitoring protocols are available in the Willamette Partnership Stewardship and Monitoring Plan Example.17 A. Plot Size and Location Data will be collected using a standard sampling methodology. At a minimum, radial plots, rectangular plots, and belt transect methodologies are acceptable. Plots will be located randomly. Location of plots should not be intended to maximize or minimize any particular metric. Random plot locations may be generated using GIS or other methods. Plots that fall within a stream or pond may be moved landward in a direction perpendicular to the stream or pond edge. Plot relocations and unique conditions should be noted on the data forms. • Radial Plots: Radial plots located at random to represent the planting area. Rectangular Plots: Rectangular macroplots with the long end oriented perpendicular to the stream (and crossing all the hydrozones). • Belt Transects: 1 m or wider belt transects oriented perpendicular to the stream and covering the entire riparian corridor within reference sites, as described in Roegner, G.C. et a 1. 2008.11 The Monitoring Data Form is included as Table 3. 17 Stewardship and Monitoring Plan Template and Stewardship and Monitoring Plan Example are available at: http://willamettel2artnershil2.org/tools-teml2lates 18 Roegner, G.C. et al. 2008. Protocols for Monitoring Habitat Restoration Projects in the Lower Columbia River and Estuary. Available at: http://www.pnI.gov/main/publications/external/technical reports/PNNL-15793.pdf. Page 8 B. Native Tree, Shrub and Woody Vine Stem Counts Using the Monitoring Data Form, count all live woody stems taller than 6" (regardless of vigor) within plots. Count multi-stem species (e.g., Symphoricarpos, Rosa) as one stem per square foot (1'x 1'). The count should include both planted and non-planted vegetation. Note significant instances of low vigor, damage from animals and other apparent problems on the data sheet. C. Native and Non-Native Species Cover Estimate cover of native woody species, non-native woody species, invasive woody species, native herbaceous species, non-native herbaceous species, invasive herbaceous species, ground substrate within plots to the nearest 5%. Cover is defined as absolute cover and is measured as the percentage of the ground surface covered by live plant leaves and stems when viewed from above. Areas not covered by vegetation are counted as unvegetated substrate. Cover may be greater than 100% if species are present in multiple strata (i.e., tree, shrub and herbaceous layers). Indicate 'T' for Trace if a non-native species covers less than 5%of the plot. D. Timing of Data Collection Data collection should occur following the expression of seasonal plant growth and mortality and prior to leaf drop. In most areas this period will include the months of September and October. Data collected outside of this period are subject to additional review. E. Determining Sample Size Initial sample size may be determined using the minimum plot number in the table below or by using the sample size workbook available on the Oregon Department of State Lands website.19 Table 2. Sample summary of sampling plot size relative to site size. Project Area/Minimum Plot Number20 Plot Size Up to 2 acres >2 to 5 acres >5 acres 11.7' radius (3.57m) 9 17 25 F. Data Analysis and Reporting Monitoring should yield data that provide 80% confidence that reported values are within ±10 units of the true population.21 Plot or transect data should be summarized in following or similar format and the results compared to the eligibility standards. 19 www.oregon.gov/DSUPERMITS/docs/sample size workbook.xls in Oregon Department of State Lands' Routine Monitoring Guidance for Vegetation(Draft Sept 23,2009). 20 Where the use of minimum plot number will not yield statistically valid results,additional plot data will be required. 21 Oregon Department of State Lands' Routine Monitoring Guidance for Vegetation(Draft Sept 23,2009). Page 9 Table 3.Sample Monitoring Data Form Project Developer: Date: HUC 5: Project Area Name: Plot or Transect# Number Woody %Native %Non- %Invasive %Native %Non- %Invasive % of woody stem woody native woody herbaceous native herbaceous unvegetated species count cover woody cover cover herbaceous cover substrate per acre cover cover 2 3... Tota I Mean(Clx=Y1-Y2) Standard Deviation Standard Error Low Estimate(Y1) High Estimate(Y2) Cl=Confidence Interval,x=80%confidence level,Yl =low estimate,Y2=high estimate Standard Error is calculated as the Standard Deviation divided by the square root of the number of plots(n). Y1 and Y2 are calculated as Mean±(standard error*t-factor 80%). Page 10 4. EXAMPLE PROGRAM DEVELOPMENT CHECKLISTS Pre-enrollment Checklist WWETAC Provisional Seed Zones for Conifer and Shrubs EPA Level III Ecoregion and HUC 5 boundaries Preliminary program area(s) boundary mapped Land ownership assessed and mapped Landowner agreement drafted Existing and potential nursery capacity evaluated Existing and potential contractor capacity evaluated Range of site conditions evaluated Revegetation limiting factors/risk assessment Enrollment/Pre-implementation Checklist Final program area boundary mapped Preliminary reference sites selected Preliminary project area(s) identified and mapped Landowner agreement(s) signed Reference site plot data collected and summarized Site prep, planting and maintenance practices established Monitoring plan developed Preliminary species list established Preliminary nursery list established Nursery stock type(s) selected Preliminary contractor list established Nursery (incl. seed) and cold storage contract(s) executed Revegetation contract(s) executed Implementation Checklist 1 Final project area(s) identified and mapped Project prescription(s) developed Project(s) prepared and inspected Project(s) planted and inspected Project(s) maintained and inspected 15% implementation contingency in place for each project Implementation Checklist 2 Nursery contract(s) evaluated/modified as necessary Revegetation practices evaluated/modified as necessary Revegetation contract(s) evaluated/modified as necessary Monitoring data collected and analyzed Determination of acceptable progress or contingency plan Page 11 Exhibit F THE700 SNNr fiavlanr S(i-utiu ( Sui(e 200 �pa,�- FRESHWATER (222 Lin���909 1 972���;TRUST www.thefreshwatertrust.org 2025 Billing Rate Sheet President/Vice President $280 per hour Senior Director $220 per hour Director $190 per hour Policy Specialist* $175 per hour Project Manager $160 per hour Senior Analyst $160 per hour Analyst $150 per hour Field Ecologist $140 per hour GIS Analyst $135 per hour Monitoring/Field Staff $120perhour Communications/Design $115 per hour Field Technician $110perhour Invoice/Administration $80 per hour *While some of The Freshwater Trust's policy specialists are licensed attorneys,The Freshwater Trust only provides policy analysis and not legal advice to its clients. The Freshwater Trust is a 501(c)(3)nonprofit organization that protects and restores freshwater ecosystems.Using science, technology and incentive-based solutions,we're changing the course of conservation on a timeline that matters.