HomeMy WebLinkAbout2005-1220 Council Mtg Packet
Important: Any citizen attending council meetings may speak on any item on the agenda, unless it is the subject
of a public hearing, which has been closed. The Public Forum is the time to speak on any subject not on the
printed agenda. If you wish to speak, please fill out the Speaker Request form located near the entrance
to the Council Chambers. The chair will recognize you and inform you as to the amount of time allotted
to you. The time granted will be dependent to some extent on the nature of the item under discussion, the
number of people who wish to be heard, and the length of the agenda.
AGENDA FOR THE REGULAR MEETING
ASHLAND CITY COUNCIL
December 20, 2005
Civic Center Council Chambers
1175 E. Main Street
6:00 p.m. Executive Session:
City Attorney Evaluation pursuant to ORS 192.660(2)(i)
7:00 p.m. Regular Meeting
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL
IV. APPROVAL OF MINUTES [5 minutes
]
1. Special Council Meeting Minutes of December 1, 2005
2. Regular Council Meeting Minutes of December 6, 2005
V. SPECIAL PRESENTATIONS & AWARDS
1. Presentation of the League of Oregon Cities 2005 Middle School Poster Contest, “If I
[5 Minutes]
Were Mayor, I Would…” Third Place Award to Neil Presicci
VI. CONSENT AGENDA [5 minutes]
1. Minutes of Boards, Commissions, and Committees
Liquor License Application for Ploughman’s Wine and Cheese Bar
2.
3. Agreement for Services RVTD
4. Commercial Lease Between City of Ashland and the State of Oregon by and through the
Oregon Department of Forestry, for Property at 400 Mistletoe Road for Use by the Oregon
Department of Forestry
VII. PUBLIC HEARINGS (unless it is the subject of a
Testimony limited to 5 minutes per speaker,
Land Use Appeal
. All hearings must conclude by 9:00 p.m., be continued to a subsequent
meeting, or be extended to 9:30 p.m. by a two-thirds vote of council {AMC §2.04.040})
None.
VIII. PUBLIC FORUM
Business from the audience not included on the agenda. (Total time
allowed for Public Forum is 15 minutes. Speakers are limited to 5 minutes or less, depending
[15 minutes maximum]
on the number of individuals wishing to speak.)
COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9
VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US
IX. UNFINISHED BUSINESS
None
X. NEW AND MISCELLANEOUS BUSINESS
[60 Minutes]
1. Ashland Fiber Network Options
2. Acceptance of Audit Committee Report and the June 30, 2005 Comprehensive
[20 Minutes]
Annual Fiscal Report
[10 minutes]
3. Budget Committee Appointment for term to end December 31, 2006
XI.
ORDINANCES, RESOLUTIONS AND CONTRACTS
1. Second reading by title only of “An Ordinance Amending Chapters 18.24, 18.28, and
18.88 of the Ashland Municipal Code – Land Use Ordinance, Regarding Conservation
Density Bonus Point Calculations for Residential Development”
2. Reading by title only of “A Resolution Setting A Public Hearing To Hear A Petition For And
Any Objections To The Vacation Of An Unopened Alley Between Ditch Road And North
Street (Vacated)”
XII. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS
XIII. ADJOURNMENT
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I).
COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9
VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US
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MINUTES FOR THE REGULAR MEETING
ASHLAND CITY COUNCIL
December 6, 2005
Civic Center Council Chambers
1175 E. Main Street
CALL TO ORDER
Mayor Morrison called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers.
ROLL CALL
Councilor Hardesty, Amarotico, Hartzell, Jackson and Chapman were present. Councilor Silbiger was absent.
APPROVAL OF MINUTES
The minutes of the Regular Council Meeting of November 15,2005 were approved as presented.
SPECIAL PRESENT A TIONS & AWARDS None
CONSENT AGENDA
1. Minutes of Boards, Commissions, and Committees.
2. Confirmation of Mayor's appointment of Dee Anne Everson to the Budget Committlee for a term
to expire December 31, 2006.
Mayor Morrison pulled Consent Agenda Item #2. Council will vote on this item at their next meeting.
Councilor Jackson/Chapman m/s to appro"e Consent Agenda Item #1. Voice Vote: all AYES. Motion
passed.
PUBLIC HEARINGS
1. Public hearing and first reading by title only oP"An Ordinance Amending Chapters 18.24, 18.28,
and 18.88 of the Ashland Municipal Code - Land Use Ordinance, Regarding Conserv:ation Density
Bonus Point Calculations for Residential Development".
Electric Director Dick Wanderscheid noted that Council discussed this issue at their October 13,2005 Study
Session and explained that the proposed ordinance would replace the currently out of date table used to award
density bonuses. Mr. Wanderscheid stated that the proposed ordinance has changed since it was last discussed
by Council and now includes the requirement that 100% of the homes need to be built to the Earth Advantage
Standards in order to receive the density bonus. It was noted that both the Planning Commission and
Conservation Commission reviewed the ordinance and recommended adoption by the Council.
Mr. Wanderscheid explained the Council's options, which are: 1) Do nothing, which leaves the current bonus
option in place, 2) Amend the ordinance to require that a 15% conservation bonus can be achieved by
constructing all of the homes to the Earth Advantage Standards, or 3) Amend the ordinance to eliminate the
earning of any density bonuses.
Assistant City Attorney Mike Reeder proposed a minor change to the ordinance to include language that
states the Earth Advantage Program will be adopted by resolution. Mayor Morrison requested that Staffbring
forward this resolution at the time this ordinance is adopted.
Public Hearing Opened: 7:11 p.m.
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John Stromberg/252 Ridge Road/Stated that he and two other Planning Commissioners have previously
voiced their concerns with the implementation of the Earth Advantage Program and claimed that Staff has not
offered a response to the points they raised. Mr. Stromberg suggested that Council: 1) Table the motion, 2)
Direct Staff to respond to their concerns, 3) Ask Staff to look for alternatives, and 4) Eliminat,e the existing
program.
Steve Vincent/870 Forest Glen Drive, Central Point/Stated that is a member of the Earth Advantage Board
and explained that they are moving forward with the program and have hired a new executive director. He
noted that he represents Southern Oregon and voiced his support of the City's effort to adopt the Earth
Advantage Program.
Public Hearing Closed: 7:16 p.m.
Mr. Wanderscheid stated that taking no action would continue to reward builders with increased density
without requiring very much of them. He noted that at the Study Session the Council raised the need to look at
the whole issue of density, infill, and all of the options for granting density bonuses. Mr. Wanderscheid
suggested that the Council move forward with this ordinance in the interim, and stated that they could amend
this ordinance if needed after they have had the more in depth discussion.
It was questioned if the City could require all new houses to be built to the Earth Advantage Standards. Mr.
Reeder clarified that there is a Uniform Building Code for Oregon and the State Statute does not permit the
City to go beyond this code. Mr. Wanderscheid commented that if the Earth Advantage Program is successful
in Ashland and throughout Oregon, hopefully in the next few years, the Oregon Building Code will be elevated
and all homes will be built to these standards.
Mr. Wanderscheid provided a brief explanation of the program incentives He stated that whoever builds the
house receives a $1,000 cash rebate and a 15% increase in density if all of the homes in the development are
built to the Earth Advantage Standards. He stated that he would be hesitant to remove the ca~:h rebate, as it
would eliminate the only incentive for individuals building on a single lot. Mr. Wanderscheicl clarified that
the City's conservation programs have a budget of$200,000. To date, there have been twelve homes certified
with this program, so it has cost the City $12,000 in the past year and a half.
Mr. Wanderscheid clarified that he did offer a response to the concerns raised by the three Planning
Commissioners. He explained that the entire region benefits when houses are built to the EaJ1h Advantage
Standards because less power is needed and the City has an immediate savings on whole power cost. He noted
the upcoming changes with Bonneville Power in 2011 when each utility will be responsible to meet the load
growth. Mr. Wanderscheid stated that if the City can ensure that its housing stock is as efficient as possible, it
will save the City money on wholesale power costs in the future.
Councilor Hardesty/Hartzell m/s to amend the ordinance to eliminate the earning of any density bonus
for conservation housing until the broader issue of in fill has had a more thorough review by the
Planning Commission and the Council. DISCUSSION: Support was voiced for repealing the current
density bonus program, however several councilors disagreed that the Earth Advantage Program should be
tabled until the more thorough discussion is complete. Roll Call Vote: Councilor Hardesty and Hartzell,
YES. Councilor Amarotico, Chapman and Jackson, NO. Motion fails 3-2.
Assistant City Attorney Mike Reeder read the ordinance by title and read aloud the amendments.
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Councilor Jackson/Chapman m/s to approve first reading of the ordinance and place on agenda for
second reading. Roll Call Vote: Councilor Hardesty and Hartzell, NO. Councilor Chapman, Amarotico
and Jackson, YES. Motion passed 3-2.
PUBLIC FORUM
Art Bullockl791 Glendower/Spoke regarding concerns he has in regards to Local Improvement Districts.
*MR. BULLOCK'S WRITTEN COMMENTS WERE SUBMITTED INTO THE PUBLIC RECORD.
City Administrator Gino Grimaldi clarified that the Council is scheduled to discuss the City's LID process on
April 13,2006. In the interim, Staff has decided to not bring any LIDs forward for Council action until they
have had this discussion.
Pam Vavra/2800 Dead Indian Memorial Road/Spoke regarding Instant Runoff Voting.
*MS. VA VRA 'S WRITTEN COMMENTS WERE SUBMITTED INTO THE PUBLIC RECORD.
UNFINISHED BUSINESS None
NEW AND MISCELLANEOUS BUSINESS
1. Passport Services
City Recorder Barbara Christensen explained that a new law established by the Intelligence Reform Terrorism
Prevention Act of 2004, requires that by January 2008, all travelers to and from the Caribbean, Bermuda,
Panama, Mexico and Canada will need to have a passport to enter or re-enter the United States. Currently, the
closest passport agency to Ashland is the Medford Post Office and the second closest is located in Klamath
Falls. Ms. Christensen explained that she applied for, and the Recorder's Office has received certification as
a Passport Acceptance Agency. She would like to offer this service to the community one day a week
beginning January 2006 and requested Council's approval.
Councilor Chapman/ Amarotico m/s to approve the implementation of Passport Services. Voice Vote:
all AYES. Motion passed.
2. Adoption of Findings for Planning Action 2005-01050 regarding 720 and 730 Liberty Street.
Interim Community Development Director Bill Molnar stated that Council approved the Land Partition and
Physical Constraints Review Permit for this Planning Action at their October 18, 2005 meeting. Before the
Council are the Findings of that decision, which were prepared by Staff with oversight by the Legal
Department. Mr. Molnar noted the time sensitivity of this matter and recommended that Council adopt the
Findings as presented.
Mr. Molnar provided a brief explanation of the intent of the flag drive screening and stated that Stafftypically
works with the applicant to determine where the screening should occur in order to restrict headlights. A
correction was noted on Condition #25, which should read "...the filii length shall be graded to 12 feet in
width... ".
Councilor Jackson/Chapman m/s to approve Findings for Planning Action 2005-01050. Voice Vote: all
AYES. Motion passed.
3. Termination of Agreement No. 86-01502 between the City and Our Lady ofthe Mountain Catholic
Church requiring public improvements.
City Administrator Gino Grimaldi presented the Staff report and clarified that this request involves only one
lot.
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Councilor Jackson/Amarotico m/s to authorize the Mayor to execute the Quitclaim Deed releasing the
City's interest in Agreement No. 86-01502 from the property described as Lot 4, Block 2 of the Peachey
Estates Subdivision. V oice Vote: all AYES. Motion passed.
ORDINANCES, RESOLUTIONS AND CONTRACTS
1. Second reading by title only of" An Ordinance Granting a Franchise to A vista".
Finance Director Lee Tuneberg stated that Staff worked with the representative from A vista and the ordinance
satisfies the changes requested by the Council, including assurances of insurance coverage, notification if the
coverage changes, and request for annual reports.
Mr. Reeder noted a correction to Sections 1 and 14, which should state the term of the contract will begin
January 1 S\ 2006.
Steve Vincent/PO Box 1709, Medford/Representing A vista Utilities. Mr. Vincent was available for Council
questions and clarified that he could mail information or meet with Councilor Chapman regarding incentives
for gas supported hot water systems.
Mr. Reeder read aloud the amendments to the ordinance.
Councilor Hartzell/Jackson m/s to approve Ordinance #2922. Roll Call Vote: Councilors Jackson,
Amarotico, Chapman, Hardesty and Hartzell, YES. Motion passed.
NEW BUSINESS cont.
4. Motion for Authorization to Negotiate Extending the Parking Enforcement Contract and Revising
Hargadine Parking Structure Operations.
Finance Director Lee Tuneberg stated that he is in the process of finalizing an RFP for a bid, but the process
will not be done until April 2006. Staff is requesting authorization to extend the contract with Diamond
Parking to June 30, 2006, which will allow time to go through the RFP process and start service July 1,2006.
Staff is also requesting authorization to make minor adjustments to the Hargadine Structure, including needed
repairs and upgrades.
Councilor Amarotico/Hartzell m/s to authorize Staff to extend the contract for downtown and
Hargadine parking enforcement with Diamond Parking to June 30, 2006; to make minor adjustments
as needed including those mentioned in staff report and to proceed with a formal bid for services
beginning no later than July 1, 2006. V oice Vote: all AYES. Motion passed.
ORDINANCES, RESOLUTIONS AND CONTRACTS cont.
3. Reading by title only of "A Resolution Establishing Cable Television and Internet Rates for the
Ashland Fiber Network, Readopting All Other Rates Without Change and Repealing Resolution
No. 2004-40".
Finance Director Lee Tuneberg stated that the proposed resolution replaces Resolution 2005-37, which was
approved by the Council in September, and corrects the omissions in the orginal documentation. Mr.
Tuneberg requested that Council approve the resolution as presented.
Catherine Shaw/886 Oak Street/Expressed her disappointment that the electric utility surcharge for AFN
was being abandoned and hopes that it will be put in place next year. Ms. Shaw stated that there are many in
the community who feel that a $7.50 charge per month is a reasonable amount to pay for community-owned
data services and stated that AFN is an important tool for the community. She compared the AFN surcharge
to the street maintenance charge and questioned how these two differed. Ms. Shaw expressed her support of
AFN and stated that the community deserves to have this type of infrastructure in place.
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Councilor Amarotico/Jackson m/s to approve Resolution #2005-44. Roll Call Vote: Councilor
Hartzell, Jackson, Chapman, Hardesty, and Amarotico, YES. Motion passed.
4. Reading by titl~ only of" A Resolution to Repeal Resolution 2005-40 Amending the Implementation
of the Ashland Fiber Network Surcharge on Electric Accounts"
Finance Director Lee Tuneberg explained that in September the Council approved a surcharge of$7.50 to be
applied to electric accounts, which was later delayed for implementation and Staff was directed to look into
options for assisting low income families with this charge. Mr. Tuneberg explained that Staff determined it
would be very difficult to go beyond the City's existing assistance programs and also noted the difficultly of
implementing the surcharge for addresses with multiple meters. He explained that the budget contains a
$500,000 subsidy for AFN and Staff is proposing that Council repeal the surcharge for this year and utilize
this money. He stated that the subsidy would not cover all of AFN's financial obligations for the year and
noted the options listed in the Staff memo.
Mr. Tuneberg provided a brief explanation of AFN's debt service. He stated that $800,000 was paid last July,
$432,000 will be due in January, and another $400,000 will be due by July 15th, 2006. He clarified that the
$500,000 subsidy would go towards the January 2006 payment.
Ron Roth/6950 Old Hwy 99S/Stated that the electric utility surcharge would not cover what is owed by AFN
and suggested that a portion of Oak Knoll Golf Course be sold to payoff AFN's debt. He stated that a portion
could be sold to developers to build market rate hosuing and the rest could be kept in public ownership for the
possible construction of affordable housing.
Sheri Bowland/165 Yz VanNess/Does not believe that the City should have gotten into the cable business
and does not feel that charging a surcharge to the electricity users is fair. Ms. Bowland noted that she had
attempted to file a complaint with the Public Utilities Commission and stated that she should not have to pay
for something she does not use. She suggested that the Council consider selling City assets OT determining
some other method that would not place a further burden on residents.
James Bowland/165 Yz VanNess/Stated that the users of AFN should be the ones supporting it, and the City
should not go after the electric users to subsidize AFN. Mr. Bowland voiced his support for using the money
set aside to make the January debt payment and then looking into options for meeting the July payment. He
also voiced his support for the idea of selling City assets to meet the total debt obligation.
Ann Marie Hutson/550 Oak KnolUStated that she is not opposed to AFN, but is opposed to how it
happened. Ms. Hutson stated that the citizens are upset because the City essentially took out a loan in their
name without their permission. She stated that she does not agree with how AFN was put into the Utility
Department and stated that in order to do this it should have gone before the voters. With regard to the debt
options, she stated that the City should take some accountability and make some sacrifices on their part.
It was noted that the Council would be making a decision on the future of AFN at an upcoming meeting.
Support was voiced for approving Staff's recommendation to meet the January debt payment with the
$500,000 subsidy set aside in the budget while continuing to look at their options for meeting future
payments. Comment was made that a surcharge should not be set until they have established what form AFN
will take and how the debt will be structured.
Councilor Chapman/Hartzell m/s to accept Staff's recommendation to use the budgeted $500,000 to
make the January payment; have Finance continue to look at options for making the deht payments;
and to adopt Resolution #2005-45. DISCUSSION: Comment was made that this is just sidestepping the
issue and they will still have a debt to pay after the decision regarding the future of AFN has been made. It
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was clarified that the motion only addresses the debt payment due next month and will allow Council to make
a decision regarding the remainder of the debt after the future of AFN has been decided. Roll Call Vote:
Councilor Hardesty, Chapman, Hartzell, Amarotico and Jackson, YES. Motion passed.
NEW BUSINESS cont.
5. Request for Council to Accept the Downtown Selection Committee's Recommendation to Award
Preparation of the Downtown Plan-Phase 1.
Interim Community Development Director Bill Molnar presented the Staff report on the acceptance of the
Downtown Plan - Phase 1. He noted that the 2005/06 Council Goals identifies the revision of the Downtown
Plan, which will be a two-phase process. Phase 1 involves defining the process and creating a work program
for the production of a revised Downtown Plan; Phase 2 will involve contracting a consultant to perform the
task of implementing the work program and ultimately producing a document to be used as the City's
Downtown Plan. Mr. Molnar stated that the Planning Department received four proposals after sending out an
RFQ, and the Downtown Selection Committee was then formed and conducted interviews. He ~tated that the
Selection Committee unanimously recommended the firm of Crandall Arambula PC be contracted to conduct
Phase 1 on the Downtown Plan. It was noted that there is $15,000 in the budget for Phase 1, however no
funding has been identified for Phase 2 and this will need to be discussed as the City moves toward the
2006/07 budget process.
Mr. Molnar clarified how Phase 1 would be approached and noted that this information was provided to the
Council in their packet materials. He also clarified that the kick-off meeting would be held in January and they
hope to have a product by March or April.
Planning Commissioner John Fields explained that they would like to bring forward a proposal to Council at
the same time a new Planning Director is coming on board. He commented on how the Council will be
gradually involved in the process and that Phase 1 will end with a presentation to the Council and them making
a decision. Mr. Fields stated that during Phase 1: 1) The Selection Committee will help Crandall Arambula to
understand which groups in the community it is important to reach out to and involve in the process, 2) Local
resources will be used as much as possible in the planning process, 3) The issue of scope will be discussed, and
4) the Committee will talk to councilors informally or come to Council Meetings to provide regular updates.
It was clarified that the economic market analysis would not be part of Phase. It was also clarified that the
Committee did talk with the consultant about them helping to identify funding for Phase 2.
Request was made for including a few more people in the workshop to make sure they are getting the needed
breadth and depth. The Committee noted that they would be holding a public session before moving towards a
final product.
Mr. Molnar explained why it is important to move ahead with this process and to not delay until a new director
is in place. He noted that in the past few years Staff has been faced with some important projects in the
downtown area that have brought up issues not dealt with before. He stated that the 1988 Downtown Plan
was a good plan; however, they need to determine the appropriate land use for the remaining parcels in the
downtown area. Mr. Molnar commented on the timing of this process and stated that the revised plan would
be a helpful tool for Staff.
Suggestion was made for a member of the downtown business community to be added to the Selection
Committee.
Councilor Jackson/Hardesty m/s to contract with Crandall Arambula PC for planning services
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involving the preparation of Ashland's Downtown Plan - Phase 1. Voice Vote: all AYES. Motion
passed.
Councilor Hartzell/Chapman m/s to extend meeting until 10:30 p.m. Voice Vote: all AYES. Motion
passed.
ORDINANCES, RESOLUTIONS AND CONTRACTS cont.
2. Second reading of "An Ordinance Amending the Ashland Municipal Code Relating to Adoption of
the 2004 Oregon Fire Code"
Fire Marshall Margueritte Hickman noted the amendments to the ordinance and Mr. Reeder read them aloud.
It was noted these were housekeeping changes and were not policy related.
Councilor Amarotico/Jackson m/s to approve Ordinance #2921. Roll Call Vote: Councilors
Amarotico, Hardesty, Chapman, Jackson, and Hartzell, YES. Motion passed.
5. Reading by title only of "A Resolution Amending Resolution 1993-39 to Include Homeowner
Association or Maintenance Fees In Any Affordability Calculations"
Housing Program Specialist Brandon Goldman presented the Staff report. He explained that the Housing
Commission was in the process of reviewing the SDC Deferral Program and making recommendations to the
Council on restructuring the methodology used to determine affordable purchase and rental process and
establishing a period of required affordability. During this process it was discovered that the current
maximum rental and purchase prices under Resolution 1993-39 could allow a occupant household to be
assessed an additional Homeowners Association Fee. The proposed amendment to the resolution would
eliminate this possibility.
Mr. Goldman noted a correction to the proposed resolution, Section 2.21 should read "The purchaser of the
unit designated for affordable housing shall not be assessed any home-owners association or maintenance
fees in addition to the maximum purchase price ".
Councilor Hartzell/Chapman m/s to approve Resolution #2005-46 as amended. Roll Call Vote:
Councilors Chapman, Jackson, Hartzell, Amarotico and Hardesty, YES. Motion passed"
OTHER BUSINESS FROM COUNCIL
Councilor Jackson commented on the presentation made to LCDC by the Regional Problem Solving Policy
Committee.
Councilor Hartzell noted that the Housing Commission held an employer assisted housing works'rlOP and noted
that Josephine and Jackson County would he hosting a workshop on February 21,2006.
ADJOURNMENT
Meeting was adjourned at 10:11 p.rn.
Barbara Christensen, City Recorder
John W. Morrison, Mayor
CITY COIWC/I. SPECl4L ME/:'T1NG
D/:'C/:'M8/:'R I. J005
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MINUTES FOR THE SPECIAL MEETING
ASHLAND CITY COUNCIL
December 1,2005
Civic Center Conncil Chambers
1175 E. Main Street
CALL TO ORDER:
Mayor Morrison called the meeting to order at 7:00 p,m. in the Civic Center Council Chambers.
ROLL CALL:
Councilors Hardesty, Amarotico, Hartzell, Jackson, Silbiger and Chapman were present.
1. Discussion of Charter Committee Recommendations
Mayor Morrison suggested that Council focus on how to move this matter ahead. He noted the
substantial time and public input already invested in this process and requested that the Council keep this
in mind as they deliberate. Mayor Morrison presented the following options for proceeding:
1) Instruct the consultant Tom Sponslor to draft a charter in the model format that contains all of the
recommendations brought forward by the Charter Review Committee.
2) Instruct the consultant Tom Sponslor to draft a charter in the model format that contains selected
recommendations brought forward by the Charter Review Committee. The Council will utilize
the motion making process and vote on which items to include.
3) Instruct the consultant Tom Sponslor to draft a charter :n the model format that contains all of the
recommendations brought forward by the Charter Review Committee, with the exception {'f
Recommendations #1, #2, and #4, whIch relate to the form of government. These three
recommendations will by omitted from the draft charter and drafted as separate mea~ures.
Support was voiced for following Option 3 presented by the Mayor. Suggestion was made for the
Council to discuss the 'housekeeping' recommendations in addition to the key recommendations
presented by the committee prior to instructing the consultant to prepare the draft. Request was made for
the Council to proceed by working through the chart of items to be changed, which is listed on page 11 of
the Charter Review Committee's report. Following this discussion, Council could address the ten key
recommendations. Opposition was voiced to starting with the housekeeping items and opposing request
was made for Council to begin by deliberating the key recommendations.
Charter Review Committee Chair Carole Wheeldon stated that there is merit in discussing the
housekeeping items, it is just up to the Council where to insert this discussion into their process. She
cited the language regarding the hospital as an example of one of the items on the housekeeping chart that
will need to be clarified by the Council.
Council agreed to discuss the items listed on the chart, with the exception of the items recommended for
removal because they are superseded by state law.
Article IX, Dillon's Rule:
City Attorney Mike Franell cited examples of powers that are granted to the Council through the broad
powers grant and explained why it is not necessary to list specific powers in the charter. Council
agreed to remove Article IX as suggested.
ClFY COUNCIl. .','PH'IAL A4E1i'T/NG
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Article XIV, Chief of Police:
It was explained that the current charter requires the police chief to be present at Council meetings. If
the Council wishes to continue this policy, the recommendation is to implement this policy by
ordinance. Suggestion was made for a police officer to be present instead of the police chief.
Consensus was reached to have a police officer present at Council meetings and to remove this
language from the draft charter. City Administrator Gino Grimaldi clarified that an ordinance was not
necessary to implement this policy.
Article XV, Section 2, Court Reports:
Council agreed to remove this language as suggested, since this action is not being performed.
Article XV, Section 4, Jury:
The recommendation is to retain this language. Mr. Franell explained that if this section was removed,
it would fall under the state statute which prescribes a twelve person jury. Given the size of Ashland
and the additional costs that would be accrued by having a twelve person jury, the recommendation is
to retain the existing charter language and keep the jury at six. Council agreed to retain this language
as recommended by the Charter Review Committee.
Article XVI, Section 1, Public Utilities:
Request was made for this item to be discussed along with the key recommendations.
Article XVI, Section 4, Repeal of Previously-Enacted Provisions:
Mr. Franell explained that the Secretary of State sets the record retention rules and that all city charters
are permanent retention documents, This recommendation would remove the list of previous charter
amendments from the document; however all 0f this information will continue to be available through
the City Recorder's Office. Council agreed to follow the committee's recommendation and remcve
this section.
Article XVII, Hospital:
Mr. Franell clarified that with the exception of Section 1, this Article is covered by state statute. He
explained that Section 1 authorizes the City to operate a hospital, but does not require them to do so.
He stated that a potential challenge may arise if this language is retained, and explained that the City
may have to defend why the hospital is listed while other establishments like the golf course or airport
are not. Mr. Franell suggested that Article XVII be removed completely from the charter. Mr. Franell
clarified that if this language is removed, the City would still be able to reestablish ownership if the
hospital failed, He added that there are certain items in the charter, such as the City Band, that should
be looked at in a different light. He stated that the Band is a unique characteristic of Ashland and has
a long term history of being in the charter. And unlike the hospital, he noted that there are no
provisions under the state statute that provides for a City Band, Request was made for Mr. Franell to
look into this issue and provide additional feedback to the Council.
Council agreed to begin deliberation of the ten key recommendations presented by the Charter Review
Committee. Suggestion was made for the Council to first decide which recommendations they agree with
and which need more discussion.
Recommendation #1: Council agreed that further discussion was necessary.
Recommendation #2: Council agreed that further discussion was necessary.
CITY em '/vClL SPECL~L ML'tJliVG
DU'f:,;\/ BL'R I. 2005
PAUE 3 ()fo
Recommendation #3: The Mayor should continue to appoint members of city commissions and
committees, subject to council approval. Council voiced support for this recommendation and agreed
to incorporate it into the draft charter.
Recommendation #4: Council agreed that further discussion was necessary.
Recommendation #5: The city recorder should continue to be elected by the voters. However, charter
language that dictates compensation should be removed; responsibility for salary issues would be
assigned to the Citizen's Budget Committee. In addition, the city council should appoint a task
force or committee to study the issues of the city recorder in additional depth.
Support was voiced for accepting the first part of the recommendation; however it was questioned if a
task force was necessary. Ms. Wheeldon explained that this portion of the recommendation had less to
do with the specific charter language and more to do with the fact that there are very few elected city
recorders in Oregon. Council agreed to accept part 'a' of the recommendation and to consult with
Tom Sponslor regarding the request for additional study.
Recommendation #6: The municipal judge should continue to be elected by the votel"S. However,
charter language that dictates compensation should be removed; responsibility for salary issues
would be assigned to the Citizen's Budget Committee. In addition, the city council should appoint a
task force or committee to study the issues of the and municipal judge in additional depth.
Council agreed to accept the first part of the recommendation and to consult with Tom Sponslor
regarding the request for additional study.
Recommendation #7: Members of the Parks and Recreation Commission should co"tinue to be
elected by city voters, and the Parks Department should continue to be administered as an
autonomous entity independent of the rest of the city government. However, existing charter
language should be streamlined to combine the Parks Commission and the Recreation Commission.
Finally, charter language that dictates the department's formula should be removed from the
charter; the Parks and Recreation budget should be determined via the annual city budget process.
Council questioned what would happen if the budget formula was removed and Measure 50 were
overturned. Mr. Franell explained that should this situation arise, this matter would have to go back to
the voters, even if the charter language was retained. Support was voiced for including this
recommendation in the draft charter. Opinion was voiced that the Parks & Recreation commissioners
should be appointed instead of elected, however the voters would likely not pass such a change.
Comment was made expressing faith that the Budget Committee will provide adequate funding to the
commission. Council agreed to accept the recommendation and incorporate it into the draft charter.
Recommendation #8: The Asllland City Band should be retained in the charter; however, funding
language should be removed and budget issues delegated to the Citizen's Budget Committee. The
committee recommends that the band be placed under the authority of the City Parks and
Recreations Department. Council agreed with this recommendation, but requested that Staff consult
with the Parks & Recreation Department to make sure they are fine with the Band being placed under
their authority and to report back if there are any issues.
Recommendation #9: Charter language that requires voter approval of all increasf~s in council
salaries should be eliminated; salary levels should be established via a city ordinance, Mr. Franell
explained that the majority of Oregon cities set salaries by ordinance; however some specify an
effective date of the January following the election. Council expressed support for this
recommendation and requested that Mr. Franell work with the consultant to draft the language.
CITY COUNCIL SPECI4L ML'!;"TING
DF.;(T;\/ Bf;'R I. :!005
PAGE 4 ufo
Recommendation #10: The city council should convene a citizen-based Charter Review Committee
at least every ten years. The Charter Review Committee members provided a brief explanation of
why it was a value to look at the charter every ten years, and noted that this does not require that any
changes be made, just that it be reviewed. Council agreed to incorporate this recommendation into the
draft charter.
Council began deliberation of the recommendations identified for additional discussion.
Recommendation #1: The City of Ash/and should be governed by a partnership between the elected
mayor (the political leader), a city manager (the administrative leader), and the council (the legislative
body). Elected officials are charged with responsibility for developing policy; the city manager should
implement that policy. The manager's administrative powers should be expanded to include staff
supervision (hiring, firing, general accountability).
Concern was expressed regarding the word "partnership". It was clarified that this was the language of
the recommendation and the charter language would not be exactly the same. Comment was made
questioning where the 'break point' was for the city manager. Concern was expressed that the City would
experience higher turnover if all of the responsibility for department heads lied with the city manager.
Ms. Wheeldon explained that there would be no reason to remove the city manager if it was a department
head that was causing the problem. She explained that the Council is not involved in the day to day
operations of the City and it was a lot to ask this volunteer body to supervise all of the depmtment heads.
Instead, this responsibility should be left to the city manager; however Ms. Wheeldon stressed the
importance of the relationship between the council and the city manager.
Support was voiced for the committee's recommendation citing that the current charter language is very
vague and is lacking a clear line of authQrity. Additional support was voiced for the city manager to
handle the hiring and firing of their subordinates. Mayor Morrison commented that the issue seems to be
whether the mayor and council should be allowed to hire and fire department heads or whether this
responsibility should be handled by the city manager, and voiced his support for allowing the voters to
make this determination. Comment was made that it would be beneficial to have the language clear;
however it really depends on the people in these two positions.
Council agreed to place this recommendation before the voters as a separate ballot title.
Recommendation #2: The Ash/and mayor should vote on all issues before the council; at the same time,
that mayor's veto power should be eliminated.
Ms. Wheeldon explained that the committee put forward this recommendation to provide a balance to
Recommendation #1. She suggested that this item could be included with the ballot title for
Recommendation #1.
Support was voiced for retaining the current structure and suggestion was made to not include this on the
ballot. Comment was made that this might confuse things if it was placed on the ballot and agreed that
the current structure should be retained.
Councilor Chapman/Hardesty mls to not accept Recommendation #2. Voice V otle: Councilor
Hardesty, Amarotico, Hartzell, Silbiger, and Chapman, YES. Councilor Jackson, NO. Motion
Passed 5-1.
CITY COt i/vO!. .')'PH'rn AfFHTlNU
DECEr\I8L'R I. 2005
PAGe 50/6
Mr. Franell clarified that this motion would not prohibit Council from readdressing this issue during the
public hearings.
Recommendation #4: The current position system for selecting council members should be eliminated
in favor of citywide, at-large elections in which the top three vote getters win the council seats at time
of issue.
Comment was made supporting four council seats elected by district with two selected at large; however
it was noted that the voters would likely not pass this.
Mr. Franell clarified that the system for electing council needs to be addressed in the charter; however the
charter language can state that the council will adopt on ordinance setting the election process.
It was questioned how this recommendation would affect the campaign finance issue and comment was
made that this could allow for someone to 'buy' a council seat Opinion was voiced that it is better when
the citizens can focus on two or three people rather than a big pool of candidates. Comment was made
that the recommended system could allow for the three candidates with the most recognized names to be
elected. Support was voiced for the City's current system which provides for diversity on the council and
allows for candidates without name recognition to gain a seat
Mayor Morrison stated that there are pros and cons to both sides of this issue and asked about the public
input the Charter Review Committee received. Committee member Hal Cloer provided his opinion that a
head to head contest makes it easier for voters to understand the candidates and it generates better media
coverage. Council commented that a head to head contest would have more focus on the issues whereas a
pool could be more of a popularity contest or who has the most money to spend on their campaign,
Suggestion was made to omit this recommendation from the draft charter, but to take public input on thIS
issue to determine if there is public support for the recommended change.
Councilor ChapmanlHartzell m/s to pull Recommendation #4. Voice Vote: all A YJE:S. Motion
passed.
Mayor Morrison provided a recap of the meeting. He noted that the Council agreed to follow Option #3,
which instructs the consultant to prepare a draft that incorporates the Charter Review Committee's
recommendations, with the exception of Recommendation # 1, which will be drafted as a separate ballot
title.
Art Bullock/791 GlendowerlNoted his previous request for Council to respond to the four different
citizens groups. Mr. Bullock voiced his frustration that there was no public forum listed on the agenda
and commented on the disconnect with the process, He stated that simplifying the charter would result in
a huge power shift from the voters, Mr. Bullock noted the 'ashland-ized' draft charter posted on the
City's website and encouraged Council to compare this simplified charter against the current charter and
look at what is being taken away,
Mayor Morrison noted that it was announced at the Study Session and at the beginning of this meeting
that Council would be taking public testimony, He offered to meet with Mr. Bullock and stated that it
was not their intent to restrict citizen input
Mr. Franell clarified that the 'ashland-ized' draft charter listed on the website was an example and is not
what will be placed before the voters. He noted the work of the Charter Review Committee to determine
CITY COUNCIL .<-W/TIAI. /\lfF/:'TING
DECl:";\! BER l. .i005
PAGE 0010
which provisions of the original charter should be carried forward and stated that quite a bit will be added
back to what is posted now.
Suggestion was made to hold one more meeting before Council discusses the draft, during which public
input could be taken and the citizens groups would be given the opportunity to present their proposals.
Opposing comment was made that most of the councilors have already reviewed the citizen proposals and
an additional meeting prior to the public hearing was not necessary.
Support was voiced for addressing the ethics issue and to consult with Mr. Sponslor regarding the
inclusion of this language in the draft charter. It was also noted that the Council would be addressing the
water provision issue at the upcoming meeting.
Mayor Morrison suggested that the council give the idea of an additional meeting more thought and
determine if such a meeting is necessary and where it would fit into their timeline.
Mr. Grimaldi clarified that the December 14th meeting with Mr. Sponslor should be viewed as a resource
opportunity and it was noted that public notice would be given for this meeting.
ADJOURNMENT
Meeting adjourned at 9:55 p.m.
April Lucas. Assistant to City Recorder
John W Morrison. Mayor
{' I} ( {
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Ii i<'
I'
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MINUTES FOR THE STUDY SESSION
ASHLAND CITY COUNCIL
November 29, 2005
Civic Center Council Chambers
1175 E. Main Street
CALL TO ORDER:
Mayor Morrison called the meeting to order at 5 :00 p.m. in the Civic Center Council Chambers. He
announced that this was an opportunity for the Council to hear the AFN Options Committee's report and
that no public testimony would be heard at this time.
ROLL CALL:
Councilors Jackson, Silbiger, Hardesty, Amarotico and Chapman were present. Councilor Hartzell
arrived at 5: 11 p.m.
1. AFN Options Committee Presentation
AFN Options Committee Chair Michael Donovan introduced committee members Richard Barth, Paul
Collins, Paul Mace, Don Mackin and Kevin Schultz.
Mr. Donovan presented a brief explanation of the process and noted that the committee received
significant public input, including input from local ISP's, Hunter Communications, the AFN
Programming Committee, past AFN Director Dick Wanderscheid, and City Staff. He explained that the
committee has identified several options and are recommending a preferred strategy. Mr. Donovan stated
that the committee strongly recommends that Council direct staff to present legal and financial findings
with regard to the following options no later than January 15,2006, so that a decision to pursue one of the
following courses of action could be followed with due haste. He noted that the following
recommendations are a two-pronged strategy and should happen in tandem with one another:
. Pursue on an expedited basis the sale of AFN to one of several entities that staff is currently
holdings discussions with. The objective of these discussions should be to elicit a non-binding
letter of intent. Bidders should include the following in their indication of interest: a) proposed
purchase price range; b) required due diligence necessary to firm up their bid; c) estimated time
range to complete such due diligence; and d) any contingencies that might affect their proposal.
Staff should contact each bidder to ask that these non-binding indications of interest be received
no later than December 15, 2005. Staff should provide each bidder with any basic information
necessary for such bidder to submit its indication of interest. Once these indications are received,
staff and the committee can clarify and evaluate the letters and make appropriate
recommendations to the City Council.
. Council should direct staff to contact three or more qualified investment banking firms
specializing in the sale of CATV/Internet systems similar in size and scope to AFN. The purpose
of this exercise is to: a) solicit input on the salability of AFN to third parties and, perhaps more
importantly, the likely proceeds to be received; b) to understand the length of time required to
complete such a process if undertaken; c) to understand the costs involved in completing such a
process; and d) to exert additional pressure on the three parties above to consummate the
transacti on.
. At the same time the Council pursues the two recommendations above, the City should
simultaneously pursue the Spin-Off option, initially by having counsel analyze various options,
and ultimately by putting in place all necessary measures so that, should AFN not be sold, the
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Council is in a position to move quickly to pursue this option with a minimum delay, but in no
event later than January 15,2006.
Mr. Mace spoke on how the options were weighed and noted that the committee's conclusion does not
recommend either option, but rather puts forward to the Council two paths that should go forward in
parallel. Mr. Mace stated that this decision needs to be made by the Council and each of the
recommended actions will benefit them in the decision making process.
Mr. Mace listed the options that were rejected by the committee, which were: 1) convert AFN to a
common carrier; 2) purchase Charter's subscriber base in Ashland; 3) maintain the status quo; 4)
immediate shutdown; and 5) continue City ownership of AFN with an enhancement of products and
programmmg.
Mr. Mace clarified why the 'Maintain & Enhance' option was eliminated from the committee's
recommendations. He stated that surprising the competition is half the battle in business and with the
current set-up, the City is required to have their discussions in public and competitors are privy to plans
well in advance of them being executed. He also stated that historically, the decision making process
regarding AFN has been cumbersome. He explained that governmental entities tend to not come to
decisions swiftly, and that this was counter to how a telecommunications business operate:;. Mr. Mace
commented on how the decision making process was 'broken' and noted a situation where an opportunity
arose but was not acted on. He added that similar situations with AFN have been repeated several times.
Council questioned if the decision making issues could be resolved by hiring someone who had autonomy
so that decisions would not have to come to Council for approval. The committee clarified that given the
way the City is required to run, they do not believe this person could be provided with sufficient
autonomy. Mr. Mace added that the rules governing city contracts are constantly changing and are
prohibitive to running a business in a highly competitive atmosphere. Mr. Mackin noted that the structure
of a city is not designed to operate strategically in a competitive marketplace.
Mr. Schultz shared his opinion that even if AFN was spun-off to a separate entity, it was still going to be
a struggle. He stated that the spin-off option would provide a better way to operate because the business
would no longer be constrained by the issues of a public entity, however the services would still need to
keep up with technology. Mr. Schultz added that if Ashland had a larger population base and there were
more households to serve, his opinion might be different; but stated that it would not be easy to capture
market share from Charter.
Mr. Mace commented on some of the other negatives with the Maintain & Enhance option. He noted that
the committee examined the budget and discovered that AFN is charged $500,000 in centr211 service fees
for this year alone; which is 20% of AFN's annual budget. He stated that the City of Spanish Fork, which
has a similar fiber network and budget, allotted $70,000 in central service fees for equivalent services.
Mr. Mace stated that the central service fees are one of the major reasons why AFN is operaTing in the red
every year and stated that it became clear to the committee that if AFN was not operating as an entity
under the City, it would operate considerably more efficiently. The committee explained that in the next
few years, the competitive picture was going to get bleaker, not better; however it was noted that they
unanimously agreed that the value of the fiber infrastructure would be fully realized at some point in the
not too distant future. The committee also commented on the hiring of a new IT Director 2,nd stated that
the salary rate proposed by the City would not attract the right candidates. It was noted that if the
Maintain & Enhance option only had one of these challenges, this option might been able to go forward;
but it is the combination of all of these issues that made the committee unanimously agree that Maintain
& Enhance was not the best option.
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Mr. Collins stated that no matter how agile AFN becomes, it has only one competitive advantage and that
is it belongs to the community. He stated that any plan going forward that cannot or does not leverage
this advantage to the fullest extent is doomed. He added that the person in charge of AFN not only needs
to have operational and management flexibility, they also need to be a shameless advocate and leverage
this sole advantage that will help AFN survive and prevail in this market.
Mayor Morrison recaptured the discussion and asked Council if there was further infOImation they
required in order to take the next steps.
Council Chapman agreed with the actions recommended by the committee that would determine the value
of AFN and stated that retaining the infrastructure would pose the most benefit to the City. He voiced his
uncertainty regarding the cable television services and noted that the internet services have been
successful. Chapman voiced support for taking immediate action and noted the need to hire an IT
Director.
Mr. Donovan stated the whole subject of debt needed to be discussed. He noted that the City has 15.5
million dollars in debt regardless of what happens with operational revenue and expenses and suggested
more discussion into the hiring of an IT Director. He shared his opinion that this might be putting the cart
before the horse and cautioned the Council against taking a step that might need to be undone.
Mr. Collins shared his opinion that an interim AFN Director might be beneficial in helping to preserve the
value of AFN while they move through this difficult process.
Mr. Mace agreed that the Council should move forward and make a decision swiftly. However he
disagreed that they should engage in interim activity prior to a decision being made. He stated that there
is sufficient staff to maintain the system and suggested that they evaluate their management and decision
making process before putting more middle managers in place.
Councilor Silbiger voiced his support for the committee's recommendations and stated that they need to
move fast. He noted that everyday that a decision is not made, $2,000 is added to the debt.
Councilor Jackson voiced support for following the committee's recommendation for a Spin-Off and
agreed that an IT Director would help move this forward.
Councilor Hartzell questioned what would happen after a sale or spin-off. She agreed with the value of
the infrastructure to the community and stated that this should be maximized.
Mr. Mace noted that Charter was not the only potential buyer of AFN. Mr. Barth stated that they need to
consider how much it would cost to rebuild the system 5 -1 0 years from now and suggested that this
would be useful information to have when making the decision.
Councilor Amarotico voiced his support for the committee's recommendations and questioned if the
committee discussed splitting the cable and internet services. Mr. Donovan stated that the committee
consulted with staff and it would be very difficult to separate these two services. Mr. Mace added that an
outright sale of AFN would involve selling the customer base, selling the equipment and leasing the
facility. He stated that this was quite common in telecommunications, but having the two services
separate but using the same equipment would get confusing.
Councilor Hardesty voiced support for the analysis and recommendations of the committee. He requested
additional discussion of the Spin-Off option and questioned the costs that would be involved.
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Mr. Schultz explained that in terms of additional funding that would be required, the Spin-Off option was
better than the Maintain & Enhance option, however the spin-off business would clearly need some
working capitol to upgrade the programming and provide products that AFN currently does not offer. He
stated that at this point, they do not know what level of commitment would be required of the City or
what level of debt the spin-off business would be able to assume.
Mr. Donovan commented on the asset of the community owned fiber and stated that this aspect needed to
be shamelessly promoted. He stated that this calls for a different job description than that of just an IT
Director. He stated that this person needs to have key public relations and communication skills and they
need to understand the partnerships that will be necessary to build in this community. Mr. Donovan
noted that the committee shares the Council's concerns regarding the capital outlay, however unless the
Council asks the spin-off organization to come forward with cash in their pockets, the City is going to
have to put something on the table in order to make this work.
Mr. Schultz stated that if the Council decides to pursue the spin-off, it should be the executive committee
that does the hiring of the director.
The committee commented on the debt of AFN and explained how the 9 million dollar debt was accrued.
Mayor Morrison voiced his appreciation for the committee and their report.
City Administrator Gino Grimaldi explained that Council's next step is to schedule this for discussion at
the December 20th Council meeting. In addition, they need to further explore whether or not to proceed
with the hiring of an IT Director. Mr. Grimaldi requested that the Council provide additional questions to
staff prior to the December 20th meeting. He also noted that Council would be making some decisions
regarding the debt at their next meeting, including whether to delay the implementation ofthe surcharge.
ADJOURNMENT
Meeting adjourned at 6:58 p.m.
Respectfiilly submitted,
Barbara Christensen, City Recorder
CITY Ol~
ASH LAf\} D
Council Communication
Meeting Date:
Department:
Approval:
December 20, ~
City Recorder
Gino Grimaldi
Liquor License Application
Primary Staff Contact: Barbara Christensen ~
488-5307 christeb@ashland.or.us
Estimated time: Consent Agenda
Statement:
Liquor License Application from Gary Smith dba Ploughman's Wine and Cheese Bar at 136 A
Street.
Background:
Application for liquor license is for new ownership.
The City has determined that the license application review by the city is set forth in AMC
Chapter 6.32 which requires that a determination be made to determine if the applicant complies
with the city's land use, business license and restaurant registration requirements (AMC Chapter
6.32).
In May 1999, the council decided it would make the above recommendation on all hquor license
applications.
Council Options:
Approve or disapprove Liquor License application.
Staff Recommendation:
Endorse the application with the following:
The city has determined that the location ofthis business complies with the city's land use requirements
and that the applicant has a business license and has registered as a restaurant, if applicable.. The city
council recommends that the OLCC proceed with processing of this application.
Potential Motions:
Motion to approve Liquor License application.
Attachments:
None
r~'
CITY OF
ASHL/\ND
Council Communication
Agreement for Services RVTD
Meeting Date: December 20,2005
Department: ~d inistration
Contributing Depa nts:
Approval: \'
Primary Staff Contact: Ann Seltzer ~
ann@ashland.or.us
Secondary Staff Contact: Gino Grimaldi
grimaldig@ashland.or.us
Estimated Time: consent
Statement:
At the council study session on September 7, council directed staff to prepare an Agreement for Services
between the City and Rogue Valley Transportation District (RVTD) for $290,000 to pay for enhanced services.
Enhanced services include an Ashland only bus route #5 and free fare for all riders within Ashland.
Items 1.6, 1.7, 1.8, 1.9, 1.10 are new additions to the Agreement and relate specifically to the marketing and
promotion of the free fare program in Ashland.
Background:
The most recent Enhanced Services Program Agreement between the City of Ashland and ROgUi~ Valley
Transportation District (RVTD) was for FY04. An agreement for services was never completed for FY05
though RVTD provided services in Ashland during that time and the city paid $240,000 for the ~,ervices. A new
agreement needs to be completed for FY06.
RVTD made a presentation to the council at the study session on September 7 which included an overview of
the program, the costs to RVTD to provide the enhanced services, information on ridership in Ashland, and
more. In the past, the Associated Students of SOU contributed $21,000 to RVTD for the program but has
decided not to continue this contribution.
Public Works Director Paula Brown included $290,000 in the FY06 budget for RVTD enhances services, a
$50,000 increase over previous years.
Council directed staff to draft an Agreement for Services in the amount of $290,000 for enhance:d services from
RVTD.
Staff Recommendation:
Approve the Agreement for Services.
Attachments:
. RVTD Agreement for Enhanced Services and Free Fare Marketing Plan
1
RVTD/CITY OF ASHLAND
Enhanced Services Program Agreement
2005 - 2008
Agreement made effective July 1,2005 between Rogue Valley Transportation District {RVTD) and the
City of Ashland (City).
RVTD and City agree:
1. Enhanced Services Proqram: RVTD has implemented reduced transit fare and increased
services within the City of Ashland. The intent of the program is to make more efficient use of
Ashland's transportation infrastructure by increasing RVTD ridership within the City of Ashland.
1.1. The program will begin on July 1, 2005 and will be completed effective June 30, 2008
1.2. Route 10 service is Ashland's base service, and its operation (with the exception of fare
reduction outlined in this agreement) is not affected by this agreement.
1.3. RVTD will provide free service to passengers picked up and delivered within the City of
Ashland.
1.4 RVTD will provide 15-minute service between the Plaza and Highway 613/Siskiyou
Boulevard and will continue current schedule and service on Route 5.
1.5 RVTD will provide the City with a quarterly ridership memo. RVTD will dE!velop a means
to track ridership of SOU students (e.g., conduct survey with statistically valid sample
size).
1.6 RVTD will post "free fare in Ashland" signs at each RVTD designated bus shelter in
Ashland.
1.7 RVTD will post a map detailing the routes of numbers 10 and 5 in each RVTD
designated bus shelter in Ashland. Each timed stop will be labeled on the map and
include times the bus stops at each of the labeled stops. In addition, the map will
indicate the 15-minutes service zone in Ashland.
1.8 City will print brochure size maps of the above mentioned map for distribution. RVTD will
distribute these maps to various locations in Ashland (refer to the attached Free Fare
Marketing Plan for specific locations).
1.9 RVTD will promote free fare in Ashland to both Ashland visitors and citizens consistent
with the Free Fare Marketing Plan (attached).
1.10 Should either the City or RVTD wish to modify the enhanced services described in 1.1,
1.2, 1.3, and 1.4 both parties shall meet and negotiate modifications to this Agreement.
2. Consideration. The City will pay to RVTD the sum of $290,000 per annum as its
contribution to the program, which shall be paid as follows:
2.1 $72,500 on July 1
2.2 $72,500 on October 1
2.3 $72,500 on January 1
2.4 $72,500 on April 1
2.5 This agreement may be terminated by either party at any time. In the event that this contract
terminates prior to June 30,2008, RVTD will refund any unused funds paid by the City to the City on a
prorated basis.
3. Publicity. Any publicity or advertising regarding the program by the City shall first be reviewed by
RVTD for accuracy and must acknowledge the support of RVTD. RVTD will provide City with
appropriate logo for this purpose.
4. Access to Records. The City and its duly authorized representatives shall have access to the
records of RVTD and any subcontractors which are directly pertinent to this Agreement for the purpose
of making audit, examination, excerpts, and transcripts.
5. Workers Compensation RVTD, its subcontractors, if any, an all employees working under this
Agreement are subject employers under the Oregon Worker's Compensation Law and shall comply
with ORS 656.017, which requires them to provide workers' compensation coverage for all their
subject workers.
6. General Liability RVTD, its subcontractors, and all employers working under this Agreement
must comply with Oregon State Laws related to workers compensation, employment, payroll taxes and
general liability for loss of property, injury to riders or others.
7. Livinq Waqe RVTD is required to comply with chapter 3.12 of the Ashland Municipal code by
paying a living wage, as defined in this chapter, to all employees performing work under this
Agreement and to any subcontractor who performs 50% or more of the service work under this
Agreement. RVTD is also required to post the attached notice predominantly in areas where all
employees will see it.
ROGUE VALLEY TRANSPORTATION DIST
CITY OF ASHLAND
By
By
Peter Jacobsen
General Manager
Gino Grimaldi
City Administrator
Reviewed as to form:
Reviewed as to form:
By
By
David Lohman
Legal Counsel for RVTD
Date:
Mike Franell
City Attorney
Date:
Submitted to:
Ann Seltzer, City of Ashland
By:
Support Services Department, RVTD
Craig Anderson, Senior Planner
Richard Smith, Marketing Manager
Paige West, TOM Planner
Rogue Valley Transportation District
3200 Crater Lake Avenue. Medford, Oregon 97~;04-9075
Phone (541) 779-5821 . Fax (541) 773-2877
On the web at: www.rvtd.orq
City of Ashland Free Fare Marketing Plan
Deceml)er 1, 2005
Background
RVTD has partnered with the City of Ashland to provide free transportation services within the
city limits. Within the first six months of providing free fares, RVTD ridership in Ashland
increased 49% and continues to rise each year. The program, now in its fourth year, is widely
known throughout the District and within Ashland. RVTD has agreed to increase the awareness
of the Ashland Free Fare program to the city's established population and to othe!rs such as
visitors, new residents and students. We have outlined the marketing strategies designed to
achieve these goals below.
Interactive Education Program
RVTD's Interactive Program, now in its tenth year, visits classrooms from Headstart to eighth
grade each Friday during the school year. The curriculum includes a description of
transportation options and a 30-minute, interactive bus ride along with the distribution of a 'bag
of goodies' for each child.
Task:
Outcome:
Provide an interactive curriculum in Ashland that includes an additional piece
notifying the students and teachers of the Ashland Free Fare program.
Reach 300 Ashland children through the Interactive Programs during each
school year during 2005-2008.
Bus Advertising Space
RVTD uses space on each of its buses to generate revenue through advertising. The Ashland
Free Fare program will be promoted for a minimum of three months per year in this method. The
cost to produce and purchase this advertising space is valued at approximately $1,200.
Task:
Outcome:
Provide RVTD bus ad space to promote the Ashland Free Fare program.
RVTD will promote the Ashland Free Fare program through bus advElrtising for a
minimum of 3 months each year through 2008.
Transportation Exhibits
The Transportation Options program at RVTD provides direct marketing to the public using
transportation exhibits. This allows the public to ask questions, learn how to use the transit
schedule and pick up brochures.
Task:
Outcome:
Market the Ashland Free Fare program at transportation exhibits.
Each RVTD exhibit in Ashland will have an "Ashland Rides FreE~ on RVTD"
banner. Visitors and passers by will also be made aware of the Ashland Free
Fare program. Booths are set up at the City of Ashland Earth Day Festival,
SOU's Earth Day, the Bike Swap, SOU's Welcome Back week and Car Free Day
events in Ashland.
2
Rogue Valley Transportation District
City of Ashland Free Fare Marketing Plan
December 1,2005
Conventional Marketing
RVTD and the Transportation Options program produce several conventional markE!ting pieces
each year using OPUS and JPR (radio stations) and FOX, NBC, CBS and RVTV (TV stations).
These ads are predominantly paid for through trades. All of the production is created 'in-house'
to save additional funds.
Task:
Outcome:
Use conventional marketing to advertise the Ashland Free Fare program.
RVTD will create a thirty-second TV ad that markets the Ashland Free Fare
program and general RVTD information. RVTD will air this ad 60 times per year
on a rotational schedule.
Bus Shelters
RVTD has several bus shelters throughout Ashland. Each shelter presents an excellent
opportunity to market the Free Fare Program.
Task:
Outcome:
Use Ashland bus shelters as advertising space for the Ashland Free Fare
Program.
RVTD will produce signs that say "Free Fare in Ashland, Come Ride With Us"
(or modify as desired by City of Ashland) and post these in a visible location to
vehicular traffic on the bus shelters. RVTD will also equip each bus shelter with a
space for posting the transit schedule and a detailed map of the routes in
Ashland along with the regular routes in the District. [The shelter materials are
vulnerable to theft and vandalism and RVTD would like to fmm a dual-
responsibility partnership with the City for notifying RVTD of these occurrences.]
Publication Drop Sites
As part of the marketing effort for RVTD, transit schedules are dropped off to hundreds of sites
throughout the District on a regular and on-call basis. The Transportation Options program also
has several sites that have a permanent quad brochure holder for park and ride, carpool and
bicycle safety information.
Task:
Outcome:
Market the Ashland Free Fare program using publications in highly visible
locations throughout Ashland.
The City will produce an Ashland Free Fare program publication and will print
1000 copies for RVTD. RVTD will drop this publication off along with the regular
materials at the locations below.
Ashland State Welcome Center
Jackson Hot Springs
Mr. C's
OCDC
Minute Market 5
Ashland City Hall
Ashland Public Works Dept.
Ashland Visitor Info Center
Ashland Chamber
Ashland Library
Four location at the SOU Campus
Ashland Employment Dept.
7-11
Minute Market 6
South Valley Community Human Services
Ashland DMV
3
Rogue Valley Transportation District
City of Ashland Free Fare Marketing Plan
Decem/Jer 1,2005
Southern Oregon University Partnership
SOU consists of approximately 25% of the Ashland population during the school year. SOU has
participated in providing part of the cost for having an Ashland Free Fare program until July of
2005. The allocation was not approved this year for reasons beyond the City's or RVTD's
control. RVTD believes that students utilize the Ashland Free Fare program and the City has
taken a position to not compensate RVTD for SOU's shortfall.
Task:
Establish a long-term presence for the Transportation Options program on
campus and educate SOU decision-makers and students about the benefits and
responsibilities of the Ashland Free Fare program.
Outcome:
Start a project during the 2005-2006 school year to increase the awareness of
alternative modes and to generate reliable data on SOU's use of RVTD. Work
with Capstone Students, the Student Union and the ECOS student groups to
develop and implement a project to achieve these goals.
Rogue Valley Transportation District
4
CITY OF
ASHLJ\ND
Council Communication
Commercial Lease Between City of Ashland and the State of Oregon, by
and through the Oregon Department of Forestry, for Property at 400
Mistletoe Road for Use by the Oregon Department of ForE~stry
Meeting Date: December 20, 2005 Primary Staff Contact: Michael Franell )/..d- ,./
Department: Legal E-mail: franellm@ashland.or.us '(II!
Contributing Departments: Fire Secondary Staff Contact: Keith Woodley
Approval: Gino Grimaldi E-mail: woodleyk@ashland.or.us
Estimated Time: 10 minutes
Statement: During the summer months an Oregon Department of Forestry (ODF) wildland fire
engine and crew are stationed at 400 Mistletoe Road, on property owned by the City of Ashland.
This property, approximately 1.09 acres, includes a small house, which serves as crew quarters.
ODF responds with the city's Fire and Rescue Department to city fires and are a tremendous
asset. The presence of a staffed wildland fire engine crew within the City of Ashland provides a
benefit of well over $50,000 annually to the community of Ashland. The current lease for use of
this property expires December 31,2005.
Background: The current lease for use of this city property has been in effect since January 1,
1996. The Oregon Department of Forestry has been utilizing this property since approximately
1961. This property is currently zoned M-1 industrial (391E14A Taxlot 2300). During summer fire
season, the ODF wildland engine responds to wildland fires in the Ashland area. In a number of
instances, this engine and crew has successfully prevented wildland fires caused by structure
fires within the City from spreading to additional properties. Their presence in Ashland
substantially enhances our wildland fire response capability and provides for a strong, integrated
fire response into the Ashland Watershed. ODF desires to renew this lease agreement, and Dan
Thorpe from the Southwest Oregon District of the ODF is planning on being present at the
council's December 20,2005, meeting.
Related City Policies: None.
Council Options: The Council can approve the proposed lease agreement attached for signing
by the city administrator, or the Council could request changes to the proposed lease, or choose
not to grant this lease.
Staff Recommendation: Staff recommends the Council approve the new lease a!~reement
attached for signing by the city administrator.
~~.
...~
Potential Motions: I move the Council approve the proposed commercial lease agreement to
begin January 1, 2006, for lease of property at 400 Mistletoe Road by the City of Aslnland to the
State of Oregon, by and through the State Forestry Department.
Attachments: Proposed commercial lease.
G:\legaI\Office\Contracts\Commercial Lease with ODF 1205.doc
~~
COMMERCIAL LEASE
Date: January 1, 2006
Between:
And:
City of Ashland ("City"), 20 East Main Street, Ashland, Oregon B7520
State of Oregon, by and through the State Forestry Department ("Lessee")
City leases to Lessee and Lessee leases from City the following described property
(the "premises") on the terms and conditions stated below:
Beginning at the southwest corner of the northeast quarter
of Section 14, T 39S, R1 E, Willamette Meridian, City of
Ashland, Jackson County, Oregon; thence north along the
west line of said northeast quarter 354.0 feet to the true
point of beginning; thence, continue north 190.0 feet;
thence east 175.0 feet; thence south r 35' each 193.4
feet; thence west 192.0 feet to the true point of beginning,
containing 0.78 acres, more or less.
1 . Occupancy
1.1. Term. The term of this lease shall commence January 1, 2006, and shall be
extended from year to year on the same terms and conditions as herein provided unless
written notice is given by either party to terminate this agreement at least 45 days prior to
the proposed termination date.
1.2. Possession. Lessee's right to possession and obligations under the
lease shall commence on January 1, 2006.
2. Rent. Lessee shall pay to City as rent the sum of $1.00 per year. Rent shall be
payable on the first day of each calendar year in advance at such place as may be
designated by City.
3. Use. The premises shall be used for a forest administrative site and for no other
purpose without the consent of City, which consent shall not be withheld unreasonably.
Lessee shall not cause or permit any Hazardous Substance to be spilled, leaked,
disposed of, or otherwise released on or under the premises. Lessee may use or
otherwise handle on the premises only those Hazardous Substances typically used or sold
in the prudent and safe operation of the business specified in section 3. Lessee may store
such Hazardous Substances on the premises only in quantities necessary to satisfy
Lessee's reasonably anticipated needs. Lessee shall comply with all Environmental Laws
LEASE AGREEMENT
G:\legal\Mike\Real Property\Dept of ForestI)' Commercial Lease 1205.doc
Page - 1
and exercise the highest degree of care in the use, handling, and storage of Hazardous
Substances and shall take all practicable measures to minimize 'the quantity and toxicity of
Hazardous Substances used, handled, or stored on the premises. Upon the expiration or
termination of this Lease, Lessee shall remove all Hazardous Substances from the
premises. The term Environmental Law shall mean any federal, state, or local statute,
regulation, or ordinance or any judicial or other governmental order pertaininu to the
protection of health, safety or the environment. The term Hazardous Substance shall
mean any hazardous, toxic, infectious or radioactive substance, waste, and material as
defined or listed by any Environmental Law and shall include, without limitation, petroleum
oil and its fractions.
4. Repairs and Maintenance.
4.1. City's Obligations. City shall be under no obligation to make or perform any
repairs, maintenance, replacements, alterations, or improvements on the premises.
4.2. Lessee's Obligations. Lessee, at its expense, shall keep the premises (including
without limitation the roof and exterior paint),in first-class repair, operating condition,
working order, and appearance.
4.3. Inspection of premises. City shall have the right to inspect the premises at any
reasonable time or times to determine the necessity of repair.
5. Alterations.
5.1. Alterations Prohibited. Lessee shall make no improvements or alterations on the
premises of any kind without first obtaining City's written consent. All alterations shall be
made in a good and workmanlike manner, and in compliance with applicable laws and
building codes.
5.2. Ownership and Removal of Alterations. All improvements and alterations
performed on the premises shall be the property of City when installed unless the
applicable City's consent specifically provides otherwise. Improvements and alterations
installed by Lessee shall, at City's option, be removed by Lessee and the premises
restored unless the applicable City's consent specifically provides otherwise,
6. Utilities. Lessee shall pay when due all charges for services and utilities incurred in
connection with the use, occupancy, operation, and maintenance of the premises,
including (but not limited to) charges for fuel, water, gas, electricity, sewage disposal,
power, refrigeration, air conditioning, telephone, and janitorial services.
7. Damage and Destruction.
7.1. Partial Damage. If the premises are partly damaged and section 7.2 does not
apply, the premises shall be repaired by Lessee at Lessee's expense. Repairs shall be
LEASE AGREEMENT
G:\legal\Mike\Real Property\Dept of Forestry Commercial Lease 1205.doc
Page - 2
accomplished with all reasonable dispatch subject to interruptions and delays from labor
disputes and matters beyond the control of Lessee.
7.2. Destruction. If the premises are destroyed or damaged such that the cost of
repair exceeds 50% of the value of the structure before the damage, either party may
elect to terminate the lease as of the date of the damage or destruction by notice given to
the other in writing not more than 45 days following the date of damage. In sLlch event all
rights and obligations of the parties shall cease as of the date of termination, and Lessee
shall be entitled to the reimbursement of any prepaid amounts paid by Lessee and
attributable to the anticipated term. If neither party elects to terminate, Lessee shall
proceed to restore the premises to substantially the same form as prior to the damage or
destruction. Work shall be commenced as soon as reasonably possible and thereafter
shall proceed without interruption except for work stoppages on account of labor disputes
and matters beyond Lessee's reasonable control.
7.3. Damage Late in Term. If damage or destruction to which section 7.2 would apply
occurs within one year before the end of the then-current lease term, Lessee may elect to
terminate the lease by written notice to City given within 45 days after the date of the
damage. Such termination shall have the same effect as termination by City under section
8.1.1.
8. Eminent Domain
8.1. Partial Taking. If a portion of the premises is condemned and sectiol1 8.2 does
not apply, the lease shall continue on the following terms:
8.1.1. City shall be entitled to all of the proceeds of condemnation, and
Lessee shall have no claim against City as a result of the condemnation.
8.1.2. City shall proceed as soon as reasonably possible to make sLlch repairs
and alterations to the premises as are necessary to restore the remaining pmmises to a
condition as comparable as reasonably practicable to that existing at the time of the
condemnation.
8.2. Total Taking. If a condemning authority takes all of the premises or a portion
sufficient to render the remaining premises reasonably unsuitable for the USE~ that Lessee
was then making of the premises, the lease shall terminate as of the date the title vests in
the condemning authorities. Such termination shall have the same effect as a termination
under section 8.1.1. City shall be entitled to all of the proceeds of condemnation, and
Lessee shall have no claim against City as a result of the condemnation.
8.3. Sale in Lieu of Condemnation. Sale of all or part of the premises to a purchaser
with the power of eminent domain in the face of a threat or probability of the exercise of
the power shall be treated for the purposes of this section as a taking by condemnation.
LEASE AGREEMENT
G:\legal\Mike\Real Property\Dept of Forestry Commercial Lease 1205.doc
Page - 3
9. Liability and Indemnity
9.1. Liens
9.1.1. Except with respect to activities for which City is responsible, Lessee shall
pay as due all claims for work done on and for services rendered or material furnished to
the premises, and shall keep the premises free from any liens.
9.1.2. Lessee may withhold payment of any claim in connection with a good-faith
dispute over the obligation to pay, as long as City's property interests are not jeopardized.
If a lien is filed as a result of nonpayment, Lessee shall, within 10 days after knowledge of
the filing, secure the discharge of the lien or deposit with City cash or sufficient corporate
surety bond or other surety satisfactory to City in an amount sufficient to discharge the lien
plus any costs, attorney fees, and other charges that could accrue as a result of a
foreclosure or sale under the lien.
9.2. Indemnification. Each party (the indemnifying party) shall defend and indemnify
the other parties, their officers, agents, and employees (the indemnified parties), from any
and all claims, actions, costs, judgments, damages or other expenses resulting from injury
to any person (including injury resulting in death,) or damage to real or tangible personal
property (including loss or destruction), caused by the negligence or other tortious acts of
the indemnifying party (including, but not limited to, acts and omissions of the indemnifying
party's officers, employees, agents, contractors, and subcontractors). The obligations
stated in this section shall be subject to the following conditions:
9.2.1. The indemnifying party shall be notified in writing of any claim promptly
after the indemnified party becomes aware of it;
9.2.2. The indemnifying party has sole control of the defense of such claim and of
all negotiations for its settlement or compromise; and
9.2.3. The indemnified party gives the indemnifying party information reasonably
available and assistance necessary to facilitate the settlement or defense of such claim
and, to the extent permitted by law, the indemnified party makes any defenses available to
it available to the indemnifying party.
The indemnifying party's indemnity obligation under this section shall be reduced to the
extent by which the liability, damage, or expense results from the negligence or other
tortious acts of the indemnified party, the indemnifying party's officers, employees, or
agents, or a third party.
The duty to indemnify any party shall be subject to the limitations imposed by the Oregon
Constitution, applicable statutes, and by the Oregon Tort Claims Act.
10. Assignment and Subletting. No part of the premises may be assigned, mortgaged, or
subleased, nor may a right of use of any portion of the property be conferred on any third
LEASE AGREEMENT
G:\legal\Mike\Real Property\Dept of Forestry Commercial Lease 1205.doc
Page - 4
person by any other means, without the prior written consent of City. This provision shall
apply to all transfers by operation of law. No consent in one instance shall prE~vent the
provision from applying to a subsequent instance. City shall not unreasonably delay
consent and shall give consent under circumstances where withholding it shall be
unreasonable.
11. Default. The following shall be events of default:
11.1. Default in Rent. Failure of Lessee to pay any rent or other charge within
10 days after written notice that it is due.
11.2. Default in Other Covenants. Failure of Lessee to comply with any term or
condition or fulfill any obligation of the lease (other than the payment of rent or other
charges) within 20 days after written notice by City specifying the nature of the default with
reasonable particularity. If the default is of such a nature that it cannot be completely
remedied within the 20-day period, this provision shall be complied with if Lessee begins
correction of the default within the 20-day period and thereafter proceeds with reasonable
diligence and in good faith to effect the remedy as soon as practicable.
12. Remedies on Default.
12.1. Termination. In the event of a default the lease may be terminated at the option
of City by written notice to Lessee. Whether or not the lease is terminated by the election
of City or otherwise, City shall be entitled to recover damages from Lessee for the default,
and City may reenter, take possession of the premises, and remove any persons or
property by legal action or by self-help with the use of reasonable force and without
liability for damages and without having accepted a surrender.
12.2. Reletting. Following reentry or abandonment, City may relet the pn3mises and in
that connection may make any suitable alterations or refurbish the premises, or both, or
change the character or use of the premises, but City shall not be required to relet for any
use or purpose other than that specified in the lease or which City may reasonably
consider injurious to the premises, or to any tenant that City may reasonably consider
objectionable. City may relet all or part of the premises, alone or in conjunction with other
properties, for a term longer or shorter than the term of this lease, upon any reasonable
terms and conditions, including the granting of some rent-free occupancy or other rent
concession.
12.3. Damages. In the event of termination or retaking of possession following default,
City shall be entitled to recover immediately, without waiting until the due date of any
future rent or until the date fixed for expiration of the lease term, the followin!~ amounts as
damages:
12.3.1. The loss of rental from the date of default until a new tenant is, or
with the exercise of reasonable efforts could have been, secured and payin~1 out.
LEASE AGREEMENT
G:\legal\Mike\Real Property\Dept of Forestry Commercial Lease 1205.doc
Page - 5
12.3.2. The reasonable costs of reentry and reletting including without
limitation the cost of any cleanup, refurbishing, removal of Lessee's property and
fixtures, costs incurred under section 12.4, or any other expense occasioned by
Lessee's default including but not limited to, any remodeling or repair costs, attorney
fees, court costs, broker commissions, and advertising costs.
12.4. City's Right to Cure Defaults. If Lessee fails to perform any obligation
under this lease, City shall have the option to do so after 30 days' written notilce to
Lessee. All of City's expenditures to correct the default shall be reimbursed by Lessee
on demand with interest at the rate of 12% annum from the date of expenditure by
City. Such action by City shall not waive any other remedies available to City because
of the default.
12.5. Remedies Cumulative. The foregoing remedies shall be in addition to
and shall not exclude any other remedy available to City under applicable law.
13. Surrender at Expiration.
13.1. Condition of premises. Upon expiration of the lease term or earlier
termination on account of default, Lessee shall deliver all keys to City and surrender
the premises in first-class condition and broom clean. Alterations constructed by
Lessee with permission from City shall not be removed or restored to the ori~~inal
condition unless the terms of permission for the alteration so require. Lessee's
obligations under this section shall be subordinate to the provisions of section 7
relating to destruction.
13.2. Fixtures.
13.2.1. All fixtures placed upon the premises during the term, other than
Lessee's trade fixtures, shall, at City's option, become the property of City, If City so
elects, Lessee shall remove any or all fixtures that would otherwise remain the
property of City, and shall repair any physical damage resulting from the removal. If
Lessee fails to remove such fixtures, City may do so and charge the cost to Lessee
with interest at the legal rate from the date of expenditure.
13.2.2. Prior to expiration or other termination of the lease term LessHe
shall remove all furnishings, furniture, and trade fixtures that remain its property. If
Lessee fails to do so, this shall be an abandonment of the property, and City may
retain the property and all rights of Lessee with respect to it shall cease or, by notice
in writing given to Lessee within 20 days after removal was required, City may elect to
hold Lessee to its obligation of removal. If City elects to require Lessee to remove,
City may effect a removal and place the property in public storage for Lessee's account.
Lessee shall be liable to City for the cost of removal, transportation to stora~le, and
storage, with interest at the legal rate on all such expenses from the date of expenditure
by City.
LEASE AGREEMENT
G:\legal\Mike\Real Property\Dept of Forestry Commercial Lease l205.doc
Page - 6
13.3. Holdover.
13.3.1. If Lessee does not vacate the premises at the time required, City shall
have the option to treat Lessee as a tenant from month to month, subject to all of the
provisions of this lease except the provisions for term and renewal, or to eject Lessee from
the premises and recover damages caused by wrongful holdover. Failure of Lessee to
remove fixtures, furniture, furnishings, or trade fixtures that Lessee is required to remove
under this lease shall constitute a failure to vacate to which this section shaH apply if the
property not removed will substantially interfere with occupancy of the premises by
another tenant or with occupancy by City for any purpose including preparation for a new
tenant.
13.3.2. If a month-to-month tenancy results from a holdover by Lessee
under this section 13.3, the tenancy shall be terrainable at the end of any monthly
rental period on written notice from City given not less than 10 days prior to the
termination date which shall be specified in the notice. Lessee waives any notice that
would otherwise be provided by law with respect to a month-to-month tenancy.
LESSEE:
By:
Its
CITY OF ASHLAND:
By:
City Administrator
By:
Date:
LEASE AGREEMENT
G:\legal\Mike\Real Property\Dept of Forestry Commercial Lease 1205.doc
Page - 7
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CITY OF
ASHL)\ND
Council Communication
Ashland Fiber Network Options
Meeting Date: December 20,2005 Primary Staff Contact: Lee Tuneberg Jfl!fi~
Department: Administrative ~ices E-mail: tuneberl@ashland.or.us
Contributing Departments: Secondary Staff Contact:
Approval: Gino Grimaldi E-mail:
Estimated Time: 60 Minutes
Statement:
The Options Committee members presented their Initial Report to Council in a study sE!ssion held on
November 29, 2005. The report recapped their work and explained their perspective on viable
options available to Council. Identified as most viable were to simultaneously solicit input from
potential buyers and consider a spin-off scenario. The committee expressed interest in some type of
common carrier approach that could be successful at marketing the capability of the system to service
providers who purchase bandwidth on City of Ashland's Fiber-optic Network.
This meeting provides an opportunity for Council to discuss the perceived benefits and detriments of
the options, to gather input from the public and to provide direction to staff on what adclitional work or
information is needed.
Background:
The Options Committee looked at sale of AFN, spinning it off as a not for profit, keep and enhance,
discontinuing operations and the status quo. The report narrative explains their approach to each of
the issues with little work being done on the alternatives deemed least likely to happen - cease
operations and continue operating as in the past (status quo).
A two pronged approach, done expeditiously, made most sense to the group to avoid losing time
between the several paths available to go down. Getting potential buyers' input on sale price is
expected to help determine a value of the infrastructure to the City should the network be kept.
The report was presented in a study session where no Council action could be taken. At this time
Council can discuss the options, ask questions, gather more input and/or direct staff to take specific or
general actions in areas addressed by the Initial Report. Other alternatives or a combilnation of
alternatives can also be considered such as the Common Carrier approach to providing wholesale
broadband services as part of keeping the system or spinning it off.
Another issue to be considered is the staff recommendation to proceed with hiring a T'3chnology
Director.
Related City Policies:
None
Council Options:
Council can direct staff to:
1. Pursue an option, or options, evaluated by the Options Committee.
~~.
w.. ~
2. Provide additional information regarding the options evaluated.
3. Continue in the IT Direct recruitment process.
4. Any or all of the above.
Staff Recommendation:
Council direct staff to move ahead with the two pronged approach, providing additional information to
Council as received or developed and to pursue recruiting an IT Director.
Potential Motions:
Move to accept staff recommendation.
Attachments:
AFN Options Committee Report
Staff memo recommending filling the Director position.
~~,
TO:
Ashland City Council
FROM:
AFN Options Committee
DATE:
November 17,2005
RE:
Initial Report
The purpose of this report is to describe the activities of the AFN Options Committee (the
"Committee") since its formation, and to present what it believes are the city's best
options with regard to AFN.
The Committee has met in formal session 11 times since its initial meeting on August 2,
2005. During these meetings, the Committee received significant public input. Moreover,
the Committee had discussions with other parties about the future of AFN. These parties
included: 1) several of the local ISPs; 2) Hunter Communications; 3) the Programming
Committee; 4) AFN's former Director; and 5) the Director of the Spanish Fork, Utah
system.
In addition to these public meetings, the Committee conducted extensive due diligence
with both City administrators and AFN staff. The members of the Committee collectively
spent several hundred hours not only in discussions with these individuals, but in
reviewing relevant financial, market and other information on AFN, its competitors and
comparable municipal systems in other regions of the country. The Committee also
reviewed valuation data for certain publicly-held companies engaging in the provision of
CATV and Internet services and applied such information to derive a theoretical
valuation for AFN.
Committee members also interviewed current and former directors of Ashland
Community Hospital, the director of OSF and members of the Mt. Ashland Board
regarding these public-private partnerships, their establishment, business models, legal
relationship to the City and mission of service to the community. The purpOS(: of these
interviews was to better understand how community experience with these models might
apply to a spin-off and how such a business can fare in a competitive market.
During this process, the Committee kept in mind the context of AFN' s current situation,
including the original rationale for its creation. Key reasons given at the time for AFN
were: 1) the need to quicken the pace of the introduction of broadband services to
Ashland; 2) the use of the system to attract new employers to the community; 3) the
retention of local control over content; 4) the avoidance of a communications final mile
defacto corporate monopoly; and 5) the benefits of competition to the community at
large. However, not only did the original construction cost run significantly over budget,
but Charter became an unexpectedly fierce competitor, adversely impacting AFN's
subsequent financial performance. Additionally, major employers, projected to be an
1
important source of revenues for AFN, are currently not an important source of AFN
revenues, with little prospect of improvement in sight.
CURRENT SITUATION
Community
The City of Ashland now finds itself with a citizenry that is extremely divided and
increasingly vocal over the future of AFN. Ballot measures forcing divestiture have been
threatened and the City finds its alternatives narrowing with regard to funding AFN's
annual cash deficits due to citizen protests. Indeed, other municipalities where such
systems enjoy broad community support have significantly outperformed AFN.
Industry
Layered on top of these community dynamics are certain industry dynamics which are
perhaps more pronounced today versus the time of AFN's conception. These industry
dynamics include:
. Rapid technological change;
. High degree of capital intensity;
. Deep-pocketed competitors;
. Intense and growing near-term competItIOn from alternative providers (e.g.
satellite, wireless, bundled telecom); and
. Uncertain longer-term competitive environment, since It IS unclear whether
satellite and/or RF distribution technology will be able to provide all future video
requirements, and if not, this could create significant potential future value for
AFN's hardwired bandwidth.
AFN
AFN's historical financial performance has been disappointing but understandable given
the tenacious competition it has encountered from Charter as well as from other
providers. The result of this competition has been a stalemate somewhat analogous to the
situation encountered on the Western front in World War I: prolonged "trench warfare"
with neither side able to gain significant additional ground (i.e., market share). Our
understanding of AFN's situation includes the following points:
. AFN is currently performing near breakeven on an operating basis; however,
operating expenses are significantly burdened by the amount of the City's annual
Central Services Fee;
. If AFN were sold, most of the annual $500,000 Central Services Fee it pays
would remain as current staff are shifted to other responsibilities;
. AFN is significantly cash negative after debt service, with such payments
scheduled to increase;
2
. The City's ability to subsidize AFN is certain to be controversial and, therefore,
difficult, due to increasing opposition by some of Ashland's citizenry;
. AFN does not currently offer either clearly differentiated products or
programmmg;
. AFN will require additional capital to become competitive in programming,
products and customer service;
. AFN as it currently operates appears to have limited ability to capture additional
market share even if it were to offer differentiated and competitive products and
services;
. AFN is under constant rate pressure from Charter, thereby limiting its ability to
increase rates in order to earn a margin more consistent with those earned in other
parts of the country;
. AFN's past actions to improve profitability in response to the Navigant study
failed to produce the desired results;
. AFN's decision-making process is particularly cumbersome and inefficient when
compared to that of private enterprise;
. AFN is competitively disadvantaged because all deliberations are made in full
public view; and
. AFN currently does not have service available to 10% of the Ashland market.
OPTIONS
As a result of the findings noted above, the Committee has reviewed a number of options.
Unfortunately, there is no perfect alternative, as each option has plusses and minuses that
will be either accepted or rejected by opposing factions within the community. The
following list shows the major options currently considered to be plausibl{~ by the
Committee. In addition to these options, the Committee explored a myriad of sub-
options. Major options considered were:
. Sale of AFN;
. Spin-off of AFN to another non-profit entity ("Spin-Off');
. Continued City ownership of AFN with an enhancement of products and
programming ("Maintain and Enhance");
. Convert AFN to a Common Carrier
. Purchase of Charter's Ashland subscriber base ("Purchase");
. Status Quo; and
. Immediate Shutdown.
In an effort to winnow this list to the best possible options, the list was further broken
down according to financial impact and likely business risk. This simple illustration is
shown in Appendix A. It is the opinion of the Committee that the Status Quo, Immediate
Shutdown, and Purchase options are either financially untenable, entail significant
controversy or both. It is also the opinion of the Committee that significant controversy
will lead to substantial delay which will cause a substantial decrease in AFN's value.
3
Moreover, although the Committee was intrigued by the Common Carrier alternative, we
concluded that this option is not germane to the fundamental organizational ,md debt
service issues and possesses so many unknowns that we did not adequately analyze this
option to make a recommendation. Instead, this option should be explored further under
either the Maintain and Enhance or Spin-Off options, should either of those two options
be chosen.
While we would be pleased to discuss the four rejected options in more ddail, the
Committee has decided to focus on the remaining three options: 1) Continued city
ownership of AFN with a new director and enhancement of products and services
("Maintain and Enhance"); 2) Spin-off of AFN to a non-profit entity ("Spin-Off'); and 3)
Sale of AFN. Each of these options will be discussed in turn.
One possible way to evaluate each of the three remaining options is to consider the
following questions:
1. The Committee believes that the key question for the Council to decide is whether
the future savings, local content control and local service are worth leaving
taxpayer funds at risk, and perhaps more likely, adding new taxpayer funds to this
burden;
2. Using the three-pronged course of action recommended on pages 10 and 11 of
this document, the Council should consider these actions in light of the expected
sale price, the amount of debt reduction and the risks of continuing or tetminating
AFN; and
3. Should the Council decide to continue funding AFN with taxpayer monies, then it
is the strong recommendation of this Committee that the Spin-Off option be
exercised.
Maintain and Enhance Option
The primary change under the Maintain and Enhance Option would be the hiring of a
seasoned executive with CATV and Internet experience. However, even were the salary
offered to be increased to attract such person, the Committee believes that the Maintain
and Enhance Option is the least attractive alternative of the three options selected for
further review and should not be pursued. The primary reasons for this opini.on are as
follows:
. The new AFN director will become part of a management structure geared
towards stewardship and maintenance, rather than competition and cost c:ontrol;
. The new AFN director will likely require significantly more autonomy and less
oversight in matters of programming, staffing, and rate setting than has been
acceptable to the City Council;
. As a public official, the new director may be constrained in his/her role of
speaking as an advocate of AFN's community mission;
. AFN faces significant organizational development and communication issues,
such as different, unresolved opinions between council, staff, and the
4
programming committee as to what policy and strategies can be decided and
executed, by whom, and how. These issues are systemic, not easily changeable
and to some degree, reflect Ashland's culture.
. AFN will remain subject to public meetings laws, public procurement and public
process in general, severely constraining its ability to compete and continuing the
inefficiency of the public decision process;
. AFN, by its nature, will continue to consume a disproportionately large amount of
attention from the City Counsel and Staff relative to its size and budget;
. AFN, as a City entity, may be precluded from entering profitable business
partnerships that could enhance revenues without putting such initiatives out to
bid;
. Debate about AFN's existence will likely remain a highly controversial issue for
years to come, further adversely impacting public perceptions about AFN's
fortunes and limiting its potential;
. Despite the new director, the City may not be able to operate the business any
better than in the past, despite potential new revenue sources;
. Charter will continue to be a tenacious competitor, putting a ceiling on the
amounts able to be charged by AFN. Furthermore, given the tremendous amount
of industry consolidation, Charter and/or its CATV operations may also be sold to
an even more formidable competitor;
. AFN will require additional funds to provide competitive products and services
like HDTV and DVR, but still may not be able to capture any additional market
share;
. The recommendations of the Navigant study failed to produce any significant
increase in revenues: there can be no assurance that future efforts to increase
revenues will be successful either;
. The City will still be burdened with its $15.5 million debt obligation, will likely
have to continue subsidizing AFN if rates can not be raised sufficiently, and will
have to spend additional funds to upgrade the system periodically.
In contrast, the Committee found very few benefits to pursuing this option:
. Because continued competition with Charter and others is assured, AFN as well
as Charter subscribers will likely get a break in the rates they pay versus others in
the Rogue Valley;
. Local content and service control continues; and
. The community will retain an asset for future applications.
As a consequence of these findings, the Options Committee strongly recommends
against pursuit of the Maintain and Enhance Option as it is likely to result in
continued financial shortfalls, continued requirements for City subsidies, limited, if
any, progress in capturing additional market share, and a further decrease in the value
of the asset. Moreover, and perhaps of equal importance is the likelihood of .continued
community divisiveness over AFN.
5
Spin-Off
In contrast to the likely outcome of the City retaining ownership of AFN and seeking to
improve its products and services, the Spin-Off option provides the community with a
higher, but not necessarily quantifiable, probability of success. Not only would the
community retain local control over content, but the problems associated with being a
public entity subject to public meeting law requirements and financial disclosures would
be eliminated. As a result, the Committee believes that this option, unlike the :\1aintain
and Enhance Option, should be seriously considered by the City Council.
The pursuit of the Spin-Off Option would require that the City create a non-profit entity
for providing telecommunications services for the Ashland community as a public
service. This new non-profit entity would have the city as its sole member, similar to the
Community Hospital, with a Board of Directors initially appointed by the Mayor and
approved by the City Council. The Board, in turn, would hire an experienced (:xecutive
capable of articulating a vision and building support within the community while
formulating and executing a successful business plan in Ashland's competitive
environment.
The Board and the CEO will be charged with leveraging the unique strategic marketing
advantages of this non-profit entity, with decisions regarding programming and services
remaining under local control guided by a public service motivation, not shareholder
profit. The new non-profit entity will provide an annual report to the Mayor and City
Council outlining its performance in achieving its mission and the outlook for years to
come.
Unlike the Maintain and Enhance Option, the new non-profit entity could conceivably
assume part of the City's $15.5 million obligation based on our estimates of the potential
cost reductions it could implement once it was spun-off and still be marginally
economically viable. According to Staff, approximately $6.5 million of the total
borrowed resulted from subsidies by the City to cover AFN's initial operating losses plus
an initial debt payment. Under this scenario, the City would contribute the remaining $9
million in capital assets and construction costs to the new non-profit entity, as well as an
estimated $725,000 in cash in the form of a loan to the new non-profit entity for its initial
working capital. The City, however, would still be liable for the annual debt service on
$9.0 million and on the entire $15.5 million should the new non-profit entity default on
its payments.
It is the Committee's opinion that forcing the new entity to immediately assume a debt
service obligation would place it under financial stress at a time when it should be
focusing on revitalizing its business. The Committee recommends that an assessment be
made regarding scheduling of any debt service costs. The potential for assumption of
6
any further additional debt should be addressed III the conditions attached to the
formation ofthe non-profit entity.
In evaluating the Spin-Off option, the City gains numerous benefits, some of which have
been previously addressed. These benefits include:
. Separation from the City should provide more focus, passIOn and specific
expertise;
. AFN will be able to operate without either competitive scrutiny or the constant
second guessing of certain factions of the citizenry;
. The new CEO will not be saddled with the cumbersome decision process
necessitated by City ownership;
. The new CEO will be able to become an effective advocate of AFN's community
mission without worrying about potential conflicts of being a public official;
. The new CEO and Board may decide that, upon further analysis, pursuing the
Common Carrier Option makes more sense than enhancing products and
programming and pursue this change in strategy; and
. As part of the franchise agreement, the City could require the non-profit entity to
offer community-specific products and services.
Key negative conclusions include:
~
. The Committee believes that the success of this venture would be ine:xtricably
linked to the success the new CEO has in marshalling community support that
will, in turn, lead to an appreciable increase in market share;
. There is no guarantee that the new non-profit entity would be able to be more
successful in either gaining additional subscribers or increasing its margins than
the City has been, given the fierce competition of Charter as well as AFN's
negative public relations history;
. The Committee's projections suggest the new non-profit entity would operate on
the slimmest of profit margins, with little margin for error;
. If the non-profit entity is unsuccessful, the City could be forced to repossess the
business with the value of the business damaged even further;
. If the new non-profit entity chooses to compete with local ISPs by offering
Internet services, indications are that at least one of the seven local ISPs,
employing three individuals, may no longer be viable; and
. The City would remain ultimately liable with respect to the entire amount of the
$15.5 million bond obligation.
Consequently, while the Spin-Off Option is superior to the Maintain and Enhance Option
given the removal of some of the current impediments to effective decision making, it is
not without risks. Charter will still remain a tough competitor and AFN will still likely
require frequent additional capital expenditures to stay competitive. Key to the success of
this new non-profit entity, as noted above, will be the ability of the new CEO to enlist
community support and thereby attract both incremental market share and market rates.
However, given the past community division over AFN, it is far from clear whether the
7
level of community support needed to ensure the long-term success of this non-profit
entity can be achieved.
Sale of AFN
Community considerations notwithstanding, sale of AFN to either Charter or some other
party, would result in the most predictable financial outcome for the City overall, even if
the result of such a sale would be an increase in every Ashland citizen's curn::nt cable
rates to market levels and the possibility of reduced competition in the provision of
CATV services to Ashland.
To that end, discussions have been initiated on a preliminary basis between Staff and
three potential financially qualified buyers in an attempt to ascertain the interesl of each
party. While we currently do not know whether any or all of these parties would be
interested in acquiring AFN, and if so, at what price, we are nonetheless attempting to
create a competitive situation among these three most likely buyers. The intended result
will be to produce one or more purchase proposals at market or better. On the other hand,
there is the possibility that none of these three parties will either have any interest in
purchasing AFN or interest at an acceptable price and on acceptable terms. Either way,
the Council will have a much better view of its options following receipt of this
preliminary feedback.
As part of its assignment, the Committee discussed the theoretical valuation of AFN
using data from publicly-held comparables. This analysis suggests that AFN could
theoretically be worth as much as approximately $10 million, using the per-subscriber
enterprise valuation of Charter. Utilizing the per subscriber valuations of certain cash
flow negative comparable public companies produces a theoretical value of about $5
million.
The valuation will vary significantly depending on a number of factors, including but not
limited to: 1) who the buyer is; 2) whether the sale includes both subscribers and assets;
and 3) whether only subscribers are sold and all physical assets (including head-end and
hybrid fiber coax network) remain with the City. If a sale is to be pursued, these factors
will need to be quantified as part of the sale negotiations. Moreover, other variations are
also possible. One important element in the determination of value is the fact that the vast
majority of cable modem users do not have a billing relationship with the City but are
actually customers of the ISPs. It is unclear how many of those customers could be
counted in a subscriber sale nor how much of the whole-sale revenue stream would
remain once AFN is not a community-owned asset.
Thus, the key reasons for pursuing the sale are as follows:
. A competitive selling process, as opposed to a forced sale, maximizes value
thereby reducing the debt as much as possible;
. The City can still pursue other alternatives if the sale is unable to be consummated
at an acceptable price;
8
. Uncertainty as to AFN's future is eliminated if a sale is consummated;
. The time and financial drain on City, the Council, Staff and the community will
be eliminated once and for all if the asset is sold;
. A franchise agreement could be written to protect community interests.
. The buyer may have the financial resources to pursue the introduction of new
services in a more timely fashion than the city.
Key risks associated with the sale of AFN include:
. Risk of rapid deterioration of customer base (and valuation) if sale process is
drawn out;
. Possible negative impact on employee morale;
. The City will likely be unable to recover some or most of the debt if AFN is sold;
. There is the possibility that the City will not generate either any interest in AFN
or interest at an unacceptable price, further tarnishing its ultimate marketability
and forcing it to pursue the Spin-Off option; and
. The buyer may gain sufficient control over Ashland's market to reduce
competition significantly and may increase rates, decrease services, exelt control
over content, and delay introduction of new services.
The present and near-term markets for television and Internet services are sufficiently
competitive (see Appendix C) that, if this were a static situation, further risk to taxpayer
dollars should be eliminated, recovering as much of the debt as possible. However, future
technology and business changes may eliminate the present competitive market, leading
to a monopoly which, once again, would need taxpayer dollars to provide reasonable
rates, content, and service.
9
KEY RECOMMENDATIONS
The Committee strongly recommends that the City Council pursue the following courses
of action. In particular, the Committee believes the City Council should direct the staff to
present the City Council with its legal and financial findings with regard to the ft)llowing
options no later than January 15, 2006, so that a decision to pursue one of the ft)llowing
courses of action can be followed with due haste.
1. Pursue on an expedited basis the sale of AFN to one of the three entities
with which Staff is currently holding discussions. The objective of these
discussions should be to elicit a non-binding letter of intent. Bidders
should include the following in their indication of interest: a) proposed
purchase price range; b) required due diligence necessary to firm up their
bid; c) estimated time range to complete such due diligence.; d) any
contingencies that might affect their proposal. Staff should contact each
bidder to ask that these non-binding indications of interest be received no
later than December 15, 2005. Staff should provide each bidder with any
basic information necessary for such bidder to submit its indication of
interest. Once these indications are received, Staff and the Committee can
clarify and evaluate the letters and make appropriate recommendations to
City Council;
2. Contact three or more qualified investment banking firms specializing in
the sale of CATV /Intemet systems similar in size and scope to AFN. The
purpose of this exercise is to: a) solicit input on the salability of AFN to
third parties and, perhaps more importantly, the likely proceeds to be
received; b) to understand the length of time required to complete such a
process if undertaken; c) to understand the costs involved in completing
such a process; and d) to exert additional pressure on the thn:e parties
above to consummate the transaction; and
3. At the same time the Council pursues the two recommendations above the
City should simultaneously pursue the Spin-Off option, initially by having
counsel analyze various options, and ultimately by putting in place all
necessary measures so that, should AFN not be sold, the City Council is in
a position to move quickly to pursue this option with a minimum of delay,
but in no event later than January 15,2006.
10
Best
Worst
APPENDIX A
Illustrative Rankings of Options Considered
Comparison of Major Options
tmpact on
Outstanding
Sale
Spi n-Oft
Common CatTier
Enha~e
Status Quo
Purehasa
Immediate Shutdown
Impact on
Annual
Cash Flow
Sale
Spin-Off
Etlhanee
Common Carrier
PurChase
Status Quo
Immedicate Shutdown
Busl,neas
Immedtate Shu1ldown
Sale
Purehasa
Commor'l CatTier
Spin-off
Enhanoe
Status Quo
11
APPENDIX B
Spin-Off Entity: A Financial Sketch
Salarie&:
Persooal Services
Material & Services:
Programming Costs
Broadband Costs
Franchise Fees
MarKeting
Vehicles ~acements
Vehicles Costs (Gas. Repairs.)
Bad Debt expenses
Consultants
High Speed -Cisco Maintooanoo
High Speed. Alcatell.laintenanoo
Irn::idental Costs:: 0tIice Su~iesiTravei
Central Services:
Rent - Office Space,IMgmt
Rent - Headend &: Satellite Dishes in yard
Utilities
legal
Accounting
SiI!iwJSofiware and Supplies
Management
HR
Elected Board
Capital:
Capital
Total ExpenlG$
Total Revenue
Gross Profit (Loss)
Loss Debt Payment
Net Profit [Loss)
status Quo
787,332.00
800.000.00
100,000.00
65,000.00
211 .400.00
00,939.00
48,957.00
11,220.00
36.302.00
16,000.00
22,000.00
28,483.00
486.261.00
100,000.00
2.&H.902.oo
2,823,320.00
(18,5a2.oo)
{1,234,248.oo)
{1,252.830.oo)
Spir1 Off Notes:
618,305.00
800.000.00
100,000.00
65,000.00
200,000.00
3 Bucket truck& Replacement costs and
Original pay back
30.000.00 Gas.lnsvrance and Maintooanal' for 1tvoo
t 1 ,220.00 Could 00 lower if billed in advanced
16.000.00
22.000.00
15.000.00
42.000.00 Office space at 1.75 x 2COOsq n
10.000.00 To be negotiated with too City
18.000.00 ~Watert'Phooe
45.000.00
25,000.00
Eslimate one lime expense to pi..lrchase 1he
10.000.00 sol'tw:are. Future estimated expenses at 25k.
0.00
0.00
0.00
2OO,()!OO.00
2,235.525.00
2,823.320.00 Revenue the same as 05-06 Budget
587,795.00
{326,000.00}
261,795.00
12
APPENDIX C
Potential Service Providers
Potential Service Providers T.lnf,'on BrOlldll>.rtd PSI.
prlallrlli!!l~!!:...!!!:lllir!!.!'t
PPV
HDTV
DVR T.lllphonll Wir,II.. YoU'
Se....loe !!"L,!,p~D..,!.
Alrihland fiber NIIMlar"
Oirect TV
)( X X '> ?
X X '> X '> '>
!Jf'1ld TV X Ot'1:ctIV !Jro.:: TV Uro':: IV X X
X Earle'>',*, X x J( Ea~hirk Fa/!tlmk
X 0lIwm X X X Clwo::lsl Owe,~
l(
Ch.rlIr COlllllnlllnilellUl)iI'I$
Qwalll Communications
0iI1t ".!work
CllIIrwW.
ElIrthilnk
!Jl!lh NilI.
X
!Jld', Nl!!. )1$1" /Ill!!.
x
X
Hunter C_tftunICllllo....
X
PBllklllt 8, Oth"...
x
APPENDIX D
Recommended Reading
"Open Service Provider Networks: Taking America's Communities Into the Digital Age"
http://www.broadbandproperties.com/2005issues/mav05issues/Ben Gould The Open S
ervice Provider.pdf or http://tinyurl.com/74068
(This article to be included with the printed report.)
13
Cll"Y OF
ASHLAND
Memo
DATE:
TO:
FROM:
November 29, 2005
Mayor and City Council
Lee Tuneberg, Administrative Services & Finance Director
RE:
AFN Staffing Recommendation
At the end of the budget process last Spring the City reworked the proposed budget to segregate all of Information
Technology services into a separate department reporting directly to the City Administrator. Part of that change
was to recognize the importance of technology and the leadership of that department. To balancH that change
there were several essential steps identified as the budget process was completed in approving the
Telecommunications Fund resources and requirements.
Since that time many of the essential changes have lagged or been deferred causing further problems in operating
our telecommunications system, and just as important, progress with the City's own computer system. Much of this
has been caused by too many processes going simultaneously, conflict on what decisions can and should be made
before others, confusion on who should make those decisions and concern about the timing and longevity of
decisions made when the long-term (even short-term) future is uncertain.
In the coming weeks Council will be considering action of many issues relating to AFN and technology. The more
significant issues are:
1. AFN operations alternatives
2. Technology leadership
3. AFN history and future regarding contracting
4. Rates, fees, surcharges and subsidies to meet AFN obligations:
. Debt service
. Overhead
. Improvements
. Needed repairs
As important as the above operations or disposition of AFN are, another significant issue has stood outside the
lime-light. The City's own network and operation has not received much attention in the recent past. This is
understandable given the magnitude of the issues above but item #2 will have a significant impact on internal
operations since all departments rely on the management and leadership of technology for the City. Remember
that the internal network, its data and systems support also operates on the fiber optic network that is AFN.
The delays we are experiencing in deciding what to do with AFN has delayed our hiring a technology director that
could and should be helping Council in decision making and the rest of us in managing operations. We do not have
Ashland Fiber Network
90 N. Mountain Avenue
Ashland, Oregon 97520
www.ashland.or.us
~~
that. Whether you believe it when staff says more people are needed, the Navigant study that said AFN was
understaffed or members of the Option Committee who say that a different structure of employees could
accomplish what is needed, all have agreed that a strong manager with technical and business sense is essential.
In 1998 the City conducted a needs assessment on technology. The report called for many steps including a
development of standards and a plan for improvements. In 1999 the consultant returned to help create the
standards but no plan was developed. The City does not have a documented and approved CIP for AFN or its own
internal technology.
The reason for this is pretty clear. The director in 1998 managed the electric system, internal technology and
embarked on building AFN. In the last six years AFN 's requirements have come first and the othE~r needs have
suffered. This year we separated management of the electric system from AFN but the internal nE~twork
management is still under the IT Director, whose position has gone unfilled as we decide what to do with AFN.
As in the other City departments, AFN and Computer Services have dedicated staff. Leadership with a sufficient
balance of skills in technology, business and management has been lacking. Along with that balance is the need
for processes that allow for timely decision making and implementation of initiatives that work for technology and
with other City initiatives and operational needs.
Regardless of what happens with AFN, the city will need a director of technology who can:
1. Manage internal technology operations
2. Develop a technology plan that addresses all city needs
3. Advise departments as new technologies become more integrated in operations
4. Track and manage telecommunications in the community regardless of the path AFN gOE~S down.
It seems as though the ongoing city needs in the above areas would be sufficient justification for any other agency
to have an IT Director even without AFN as a city operation or a direct report to this position. A key question in
everyone's mind as we worked through interview process a few months ago surrounded the outcome of the Options
review process and what decisions might be made changing the career decision of the applicant.
It also seems potentially viable that any candidate for the Telecommunications Director position could be provided a
contract that safeguards their career employment as they help the City with any path chosen. And, if AFN left the
direct control of the City, the candidate would mange the City's interests in telecommunication technology through
the transition and the City's own internal development as long as needed and beneficial to employee and employer.
The candidate could even be given the choice of going with AFN in a spin-off scenario or staying with the City if the
alternative path did work well for them.
Even with the Options Committee completion of the initial assignment there could still be hesitation about hiring a
technology director. It is important that a new manager, dedicated to moving the City's technolo~IY program
forward, be recruited. Moving ahead with current applicants may be difficult due to a potential change in the focus
of the job announcement but existing applicants may welcome a change in conditions of employment that makes
Ashland a more viable career opportunity regardless of alternatives the City faces with telecommunication services.
Staff recommends that the City Administrator be directed to reactivate and complete the interview process for a new
Telecommunications Director, negotiating and bringing to Council a contract for employment that provides sufficient
continuity for employer and candidate. If such a contract can not be developed with an existing candidate then the
City Administrator will start a new recruitment process.
Ashland Fiber Network
90 N. Mountain Avenue
Ashland, Oregon 97520
www.ashland.or.us
~~
CITY OF
AS H LAI'J D
Council Communication
Acceptance of Audit Committee Report and the June 30, 2005 Comprehensive
Annual Financial Report
Meeting Date:
Department:
Contributing Depts:
Approval:
December 20, 2005
Administrative s~r lces
N/A i /
Gino Grimaldi '~
H;J...,
Primary Staff Contact: Lee Tuneberg, 552-2003
E-mail: tuneberl@ashland.oLus
Secondary Staff Contact: N/ A
Estimated Time: 20 minutes
Statement:
The Audit Committee has met with staff and Pauly, Rogers and Company, P.C. to review and
accept the annual audit for the fiscal year ended June 30, 2005. The committee's report can be
found in the annual financial report on page xv and the auditor opinion on page 1.
Background:
The Comprehensive Annual Financial Report (CAFR) is prepared annually as part of the state-
required audit by an independent, certified and municipally licensed auditor. In Ashland, the
auditor reports to the Audit Committee established by the Council. The committee receives the
auditor opinion, management letter and annual financial reports (including the Parks
Commission Component Unit Financial Report) prepared by staff. When satisfied with the
reports and related information, the committee forwards the report to Council with a
recommendation to accept.
The auditor gave an unqualified opinion again this year but found three reportable conditions to
include in a management letter for fiscal year 2004-05. The three conditions that the auditors
noted are included in the attachment titled "Management Report."
The Finance Department's response to the Management Report comments are attached as
"Staffs Responses." All three issues raised are being acted upon at this time and the comments
will be cleared in this fiscal year.
The City and its component unit, the Parks & Recreation Commission, implemented
Governmental Accounting Standards Board Statement 34 (GASBS) in a two-step process over
FY 2002-03 and FY 2003-04 with fixed assets being fully included the second year. The City
also implemented GASBS 44 this year to include more financial and economic trending
information. These required conversions provide information in a more comparable business
perspective that can be seen in the Management's Discussion & Analysis letter and the Statistical
Section. The reader should review these parts of the report for a more detailed discussion of the
agency's financial health including changes in the following:
1. Operational and general revenues.
1
~1r.1I
1,..11
2. Operating expenses.
3. Capital outlay.
4. Improvements.
5. Debt service.
6. City's bond rating.
7. Financial trending.
8. Revenue and debt capacity.
9. Economic and demographic information.
The city is responsible for completeness and accuracy of the annual report. The necessary
auditor reports are included in the document and presented on their letterhead.
The annual report is a complex document containing a tremendous amount of information. From
an overview perspective, the City remains in a good financial position with the net assets
increasing slightly to $102,188,450.
Total City assets are down $2.7 million which includes:
. $8.6 million more in cash from refinancing AFN and $0.5 million more in fixed assets
offset by:
. $6.7 million more in liabilities recognizing the related debt and $5.1 million more in
accumulated depreciation, a part of GASBS 34 and recognizing depreciated fixed assets
in general activity type funds (General Fund, Street Fund, Equipment Fund, etc.).
The Parks and Recreation Commission net assets decreased nearly $100,000 primarily in the
amount of cash on hand at the end of the year.
As in the past, most funds are doing well when considering fund balances. The
Telecommunications Fund and its fund balance are still heavily dependant upon resources
provided from other funds. Variations in the timing of capital project work and related financing
continue to cause changes in actual fund balances as compared to what was budgeted in all
enterprise funds.
Changes in Ending Fund Balances (Adopted and Actual) for all funds can be viewed on pages
102 and 103.
Key places to look within the document are:
I - IX
xv
1-2
3 - 13
17 - 27
31 - 59
63 - 129
134 - 146
Information
Transmittal letter from staff
Report of Audit Committee accepting the audit
Auditor's unqualified opinion
Management's Discussion & Analysis
Basic Financial Statements
Notes to General Purpose Financial Statements
Supplementary reports, schedules and statistical tables
Other required auditor comments and disclosures
Pages
On page 40 of the Notes section the City discloses an Oregon Budget Law violation in the
Airport Fund where $30,617 was spent beyond the appropriation level. The auditors reference
the same violation and note on page 135. The over expenditure is due to unforeseen construction
2
CITY C)F
ASHLA~ND
change orders arising on a grant-funded capital project that came to light too late to amend the
budget. The change orders included a correction to runway drainage and an increase im
quantities needed for completion resulting in more expense than anticipated for the $1,000,000
plus project.
Reimbursement for these costs will take place in FY 2005-06. These costs could not be
estimated, billed to the granting agency and included in the budget by June 30, 2005. Due to the
poor timing of these changes at year end the result was a budget violation. Staff has thoroughly
discussed this issue to avoid recurrence.
Related City Policies
City of Ashland Financial Management Policies, Budget Document Appendix
Council Options:
Council may accept the Committee's report and the annual report as presented, recommend
modifications as discussed or defer acceptance (takes no action) awaiting further information or
clarification.
Staff Recommendation:
The Audit Committee recommends acceptance of the Comprehensive Annual Financial Report
for FY 2004-05 and staff concurs.
Potential Motions:
Council moves to accept the Audit Committee Report and the Comprehensive Annual Financial
Report for the fiscal year ended June 30, 2005 as presented.
Council moves to accept the Audit Committee Report and the Comprehensive Annual Financial
Report for the fiscal year ended June 30, 2005 as modified by discussion.
Council takes no action pending further information or clarification.
Attachments:
FY 2004-05 Comprehensive Annual Financial Report including:
Audit Committee Report
Independent Auditors' Report
2004-2005 Management Report
Staffletter to Audit Committee dated 11129/2005 Responding to the Management Report
Audit Committee meeting minutes 11129/05
3
r~'
CITY OF ASHLAND
ASHLAND, OREGON
2004-2005
MANAGEMENT REPORT
rnF.t
PAULY, ROGERS AND CO., P.C.
CERTIFIED PUBLIC ACCOUNTANTS
· 12700 SW 72ND AVENUE · TIGARD. OREGON 97223
· (503) 620-2632 · FAX (503) 684-7523
September 30,2005
City Council
City of Ashland
20 East Main Street
Ashland, OR 97520
In planning and performing our audit of the financial statements of City of Ashland for the year ended
June 30, 2005, we considered its internal control structure in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
control structure. However, we noted certain matters that we consider to be reportable conditions under
standards established by the American Institute of Certified Public Accountants. Reportable conditions involve
matters coming to our attention relating to deficiencies in the design or operation of the internal control structure
that, in our judgment, could adversely affect the organization's ability to record, process, summarize, and report
financial data consistent with the assertions of management in the financial statements.
The City's internal control structure consists of policies and procedures established by management to provide
reasonable, but not absolute, assurance that financial data are recorded, processed, summarized, and reported
consistent with the assertions embodied in the financial statements. In establishing those policies and procedures,
management assesses their expected benefits and related costs. Because of the inherent limitations in any
internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of
any assessment of the internal control structure to future periods is subject to the risk that policies or procedures
may become inadequate because of changes in conditions or that the degree of compliance with the policies or
procedures may deteriorate.
We noted the following reportable conditions:
1. We noted that the utility billing system cannot produce a report that breaks ouT the utility
receivables by fund. This was part of a management comment that was issued in 2002-03 that has
not been implemented (although the other parts of the prior management comment have been
implemented). This report would be a useful reconciliation tool for the City. We recommend that
the City address this report writing issue.
2. We noted that bank reconciliations were a few months behind in 2004-05. Performing timely
reconciliations of all accounts, especially cash accounts, are a necessary part of good internal
control. We recommend that cash be reconciled monthly, preferably prior to the twentieth day of
the subsequent month.
3. We noted a few visa statements had supporting receipts mlSS1l1g. Maintaining appropriate
documentation is a major part of maintaining control over disbursements. Also, the visa's are being
paid before all of the receipts are received. Account Payable is instructed to do this in order to
avoid late charges. There appears to be a few individuals who disregard the visa dccumentation
requirements, so the credit card policy should be enforced to either charge the employee personally
for all unsubstantiated receipts or revoke card privileges. (Please note that the Internal Revenue
Service (IRS) requires that employees substantiate all credit card reimbursements. The elements
required for substantiation include: amount, time and date, place, and business purpose. According
to the IRS, if credit card charges are not substantiated, the reimbursement amount could potentially
be included in the employee's income.)
Page 2
This report is intended solely for the information and use ofthe City Council, Audit Committee management, and
others within the organization.
I?~ 2~~~/G
PAULY, ROGERS AND CO., P.c.
CITY OF
ASHLAN[)
November 29, 2005
Audit Committee
City of Ashland
20 East Main Street
Ashland, OR 97520
Auditor reportable conditions:
1. We noted that the utility billing system cannot produce a report that breaks out
the utility receivables by fund. This was part of a management comment that
was issued in 2002-03 that has not been implemented (although the other parts
of the prior management comment have been implemented). This report would
be a useful reconciliation tool for the City. We recommend that the City
address this report writing issue.
Response:
Staff agrees with the Auditor's assessment but believe it is a greater issue than just n~port
generation. The rest of the comment from FY 2003 was cleared by hiring another
programmer and Finance promising an independent review of the internally-built software.
The City now has two programmers on staff and both of them are working on the upgrade to
the internal package but progress has been slow. At the time of this report no schedule or
plan is in place for implementation, documentation and training. Additionally, Financ1;) did
conduct a review of the existing software by the Government Finance Officers Association
between March and September, 2005. GFOA's report recommended the City go out toO bid
for a new VB package for many reasons including the current software's inability to
generate balancing reports. A copy of the report is available for review
Key issues to consider when looking at bidding software are:
. Business processes - Ashland has a unique approach to most everything, espel::ially
with AFN as part of the billing process and such approaches may limit software
packages that could be considered.
. Complexity - Ashland's utility bills have many components but fees and charges
generally are either formula or table driven. On-staff programming does provide
unique customization.
. Internal controls - Controls and documentation have been a problem for the city
with the existing software and is a potential problem with the proposed new release
of the internally-built software.
. Cost to buy and maintain - The city has many financial applications and are
charged 16% (approximately $61,000 in FY 2005-06) annually for support and
updates. A new VB system may cost over $200,000 and be $32,000+ per y,;)ar to
maintain.
. Staffing - We pay approximately $200,000 per year for programming staff support
but they also do other work besides software creation and revision. Computer
services has had difficulty in meeting demands put upon them in the recent past
even though the total staff has grown by 3 since 2004.
A possible approach to the challenge of a conversion is to permit the internally built
software to compete in a RFP process with evaluations done by independent reviewers
having no connection with the city's final decision. If the internal software was omiitted
from the process then programming staff would be expected to participate in evaluations and
could be used to meet other systems' needs after a conversion was complete.
2. We noted that bank reconciliations were a few months behind in 2004-05.
Performing timely reconciliations of all accounts, especially cash accounts, are
a necessary part of good internal control. We recommend that cash be
reconciled monthly, preferably prior to the twentieth day of the subseqlllent
month.
Response:
Staff recognizes this shortfall and has worked to be current as of the date of this report. The
Accounting Division has endured four different changes in staff in the last 12 months. This
has disrupted processes and put us behind in many areas. Errors and delays in financial
reporting, and this year's annual audit, attest to this. Day to day activities are being dom~ but
monthly activities can lag and improvements in other areas have been delayed. As the new
employees become more experienced with the City the likelihood of this recurring will be
minimized.
3. We noted a few visa statements had supporting receipts missing. Maintaining
appropriate documentation is a major part of maintaining control over
disbursements. Also, the visa's are being paid before all of the receipts are
received. Account Payable is instructed to do this in order to avoid late
charges. There appears to be a few individuals who disregard the visa
documentation requirements, so the credit card policy should be enforced to
either charge the employee personally for all unsubstantiated receipts or
revoke card privileges. (Please note that the Internal Revenue Service (IRS)
requires that employees substantiate all credit card reimbursements. The
elements required for substantiation include: amount, time and date, place,
and business purpose. According to the IRS, if credit card charges arle not
substantiated, the reimbursement amount could potentially be included in the
employee's income.)
Response:
The City works hard to keep costs down while effectively managing purchasing proc1edures and
controls. Ashland's CAFR recognizes that no control will cost more than the benefit derived.
ii
Reviews of purchases, especially by credit cards, are done monthly to ensure the highest level of
compliance possible given staff and exposure. Paying bank statements immediately does not
sacrifice any control and does avoid thousands of dollars of late fees annually.
Those individuals who carry credit cards are educated on the rules. Single or infrequent problems
with lost invoices are professionally dealt with but ongoing violations result in rescinding the
authority to use a City credit card. This can result in operational deficiencies when em,~rgencies
arise but it is then the department's responsibility to take necessary steps to minimize any such
impact.
The credit card for the employee with multiple violations was revoked and alternate purchasing
methods were established.
I hope these responses are helpful in understanding the work being done by the Finance
Department to meet or exceed City expectations and legal requirements.
Sincerely,
Lee Tuneberg
City of Ashland
Administrative Services & Finance Director
iii
AUDIT COMMITTEE MEETING
NOVEMBER 29, 2005 - PAGE 1 OF 5
CIlrv OF
ASHLAND
Audit Committee
Draft Minutes
November 29, 2005 1 :OOpm
Siskiyou Room, Community Development/Engineering Services Building
51 Winburn Way
CALL TO ORDER
Lee Tuneberg, Administrative Services and Finance Director called the Audit Committee
meeting to order at 1 :02 p.m. on November 29, 2005 in the Siskiyou Room of the CDES
Building, 51 Winburn Way Ashland, Oregon.
Christensen/Nutter ms for Alan Case to chair committee. All Ayes
ROLL CALL
Committee members Case, Christensen, Levine, and Nutter were present. Mayor
Morrison was absent.
STAFF PRESENT: LEE TUNEBERG, ADMINISTRATIVE SERVICES AND FINANCE
DIRECTOR
CINDY HANKS, PROJECT MANAGER
JOAN BAKER, ACCOUNTING DIVISION MANAGER
SCOTT WHITMAN, STAFF ACCOUNTANT
CINDY WEAVER, STAFF ACCOUNTANT
BRYN MORRISON, ACCOUNT REPRESENTATIVE
APPROVAL OF MINUTES
Audit Committee Minutes of January 11, 2005
Christensen/Levine ms to approve minutes as presented. All Ayes.
PUBLIC INPUT
None
AUDIT COMMITTEE MEETING
NOVEMBER 29,2005 - PAGE 2 OF 5
PRESENTATION BY THE AUDITORS
The Committee welcomed Kenny Allen, CPA and Terry Halter, the compliance manager
for Pauly, Rogers, and Associates. Mr. Allen spoke to the opinions that the auditors
gave the City. The City received an unqualified clean opinion on the first opinion on the
financials. The second opinion, the statement of standards, had one exception of a
budget over expenditure. The third opinion on the single audit had no findings to report.
He mentioned that there were three comments on the management letter. He spoke to
this being the second year of SA TH 99 and the focus on the risk of fraud and the
auditor's requirement to educate staff and to look at fraud factors within the audit. He
added that they found no instances of fraud. Mr. Tuneberg spoke to this bein!~ the third
year of the GASBS 34 implementation and that the City chose to implement GASBS 44
this year. GASBS 44 implemented more trending information for the statistical section
The Committee questioned what the Charges for Services included and the changes
from last year. Mr. Tuneberg responded that Charges for Services represents fees and
rates that citizens are charged for services. The change from last year could be
attributed to seasonal swings and changes year to year. The most is the growth in AFN
transitioning from the build out. The Committee questioned if the Water Fund did not
meet the budget amount, and were curious that the increase in fees and revenues are
below projections. Mr. Tuneberg responded that they try to estimate the product that will
be utilized and it is based upon an average and if they do not have an avera!~e year,
they may not generate as much revenue. Guy Nuttter, Audit Committee member would
like a comparison of fees and charges for services from last year. Staff will provide.
The Committee discussed page 10, the four utilities recording program revenues less
than expenses resulting in net costs in Table D. Mr. Tuneberg responded that program
revenues were not charged adequately to meet expenses. The City has guidelines for
target fund balances, and when he first started here, balances were too large. Now they
are working to lower fund balances and that fund balances could stabilize thiis from year
to year. He explained that there are activities in this that require revenues from other
sources. Transfers and subsidies are not shown here.
The Committee questioned when rate studies were planned. Mr. Tuneberg responded
that Water and Wastewater will be this year and Electric next year. Water and
Wastewater were done two years ago. The Committee discussed the chan~~es in the
Water Fund from the previous year and Mr. Nutter requested the detail. Staff will
provide. It was explained by Mr. Allen that there are three different basis' of accounting
provided in the book: the modified accrual, the full accrual, and cash basis.
The Committee discussed the consumption effecting taxes. Mr. Tuneberg explained that
taxes for the Water Fund are based upon debt service. If we change debt service, the
revenue stream would change. Taxes do not reflect the water used by the community.
AUDIT COMMITTEE MEETING
NOVEMBER 29,2005 - PAGE 3 OF 5
The Committee questioned what intergovernmental revenues and interfund loans
represented. Mr. Tuneberg responded that intergovernmental revenues are mostly
grant monies the City receives and interfund loans are when they lend money from one
fund to another. If it is an operating loan, it is paid back the next year. Construction is
paid back within five years. The Committee questioned if any analysis was done on the
timing of projects and differences in funds for projects. Mr. Tuneberg pointed to the
statistical comparison in budget and actual funds, and changes in fund balances. He
explained that those figures are better seen in the budget document. The Committee
questioned how the City has shown when projects cost more than budgeted. Mr.
Tuneberg responded that it would go to the Council level, but they attempt to comply
with state purchasing requirements. The Committee discussed that the City does have
to abide by Oregon Budget Law as well.
The Committee questioned the large increase in accounts payable and interest payable
in Business-type activities between the years. Mr. Tuneberg responded that the
payables fluctuate, and explained that how the fiscal year falls, is in the middle of the
construction period and it does not represent missed deadlines in payables. The
Committee discussed the interest payable is for long term financing.
The Committee questioned what the loss on disposal of assets was. Mr. Allen explained
that the City purged capital assets under a certain dollar figure in accordance with
GASBS 34 and it is not an actual loss.
Mr. Allen spoke to the management letter for the City. One reportable conditilon was that
the utility billing system could not break out receivables by fund. This was part of a
comment that was reported in the 2003 management letter that has not been
implemented, although the other parts of the letter have been implemented. The second
comment was that bank reconciliations were a few months behind. They recommend
reconciling monthly prior to 20th day of the month. The third comment was that some
visa statements were missing supporting receipts. The dollar amount was not significant
and it was mentioned as a procedural matter. Mr. Allen stated that they looked at 25
individual statements and found five receipts missing. Mr. Tuneberg responded that the
City takes credit card use seriously and have asked the auditors to look closely at it. He
explained that the credit card company is questioned about the charges and if the
employee does not follow the policy to submit receipts, they will loose their card. One
employee's card was cancelled as a result of the finding. Mr. Tuneberg explained that
an employee must put in writing the purchase on the card if the receipt is lost. The
Committee questioned whether the City can charge the employee for the purchase.
Barbara Christensen, City Recorder and Treasurer explained that the policy states that
it is ultimately the employee's responsibility to pay the charges on the account. The City
has authorization as signers on the account. She explained that the City has looked into
AUDIT COMMITTEE MEEllING
NOVEMBER 29,2005 - PAGE 4 OF 5
other options for purchasing, and this is not a large problem City wide. Mr. Tuneberg
explained that he has spoken to Department Heads about this issue and is in the
process of educating staff.
Mr. Tuneberg spoke to the responses from Staff. He stated that when the comment
came up before, they responded by doing a study on the software. The Government
Finance Officers Association (GFOA) did a study on the current system and they have
funds in the budget to replace the system. GFOA suggested that the City go out to bid
for a new system. It is a complicated issue and the City is unique in that we bill for
electricity and cable TV. He added that the goal is to either through internally or
externally developed software that will address this issue.
Mr. Tuneberg responded to the second comment on the bank reconciliations and added
that the City has had staff changes recently and that will be corrected.
Mr. Tuneberg spoke to the budgetary violation in the Airport Fund. He pointed to page
70 and that they usually have adequate appropriations within the fund to cover over
expenditures. This year, the City had grants to do the improvement project. In April
through June the project looked fine, but it came in over budget after the fiscal year had
ended. After June 30, change orders that were part of the contract were submitted. A
budget adjustment was not able to be done since it happened after the fiscal year had
closed. The change orders were appropriate but could not be adjusted for in the budget
process. He explained that the grants will come in from the federal government to repay
the project. The Committee asked what the consequences are for a budget violation.
Mr. Allen explained that the Oregon Department of Revenue (DoR) will send a letter
asking the City to explain why it happened and to explain that it will not happ1en again.
The Committee asked if the DoR audits cities and what they could penalize for non
compliance. Mr. Halter explained that the only penalization he had heard of was that
school districts could have their funding held and incorporated businesses could loose
their incorporation status.
The Committee inquired on Mr. Deboer's previous year's questions about a breakdown
on revenue on the businesses the government ran. Mr. Tuneberg responded that it is
difficult to breakout and that the detail in the trial balance may provide information the
Committee may be interested in. He explained that some services are not put in place
to make money and the budget document and performance measurers are the best
place to look for how departments are doing.
CUFR
Mr. Tuneberg spoke to the CUFR. He explained that the Parks Commission budget is
reflected in the City budget and in financial report as the Component Unit.
AUDIT COMMITTEE MEETING
NOVEMBER 29,2005 - PAGE 5 OF 5
He explained that the report was primarily written by Scott Whitman and audited by
Pauly, Rogers. Mr. Allen added that the CUFR received and unqualified clean opinion
and in the minimum standards, found no instances requiring comment. The Committee
questioned who audits the funding that is received is spent in the appropriate way. Mr.
Allen responded that they look to see if allocations and transactions are reasonable
within the funds. It was discussed that they reconcile the differences between actual
and budgeted figures.
The Committee signed the annual letter accepting the report as presented and
recommended it to proceed to acceptance by Council.
Audit Process - FY 2005-2006
Mr. Tuneberg spoke to the audit contract and extending it. Last year the Committee
agreed to extend it one more year. The Committee discussed extending the current
contract for one more year to June 30, 2006.
Levine/Christensen ms to approve one more year. All Ayes.
The Committee discussed possibly comprising a condensed version of the book for the
general public. Mr. Tuneberg mentioned that there is a Popular Annual Financial Report
that could be developed. Ms. Christensen cautioned against additional workload and
staff time that would require.
Adiournment
The meeting was adjourned at 3:05 p.m.
Respectfully Submitted,
Bryn Morrison
Account Representative
Administrative Services Department
CITY Ol~
ASHLAr~D
Council Communication
Budget Committee Appointment for term to end December 31, 2006
Meeting Date:
Department:
Approval:
December 20, 91
City Recorder
Gino Grimaldi
~
Primary Staff Contact: Barbara Christl~nsen
christeb@ashland.or.us
Secondary Staff Contact: na
Time Estimate: 10 minutes
Statement:
A vacancy on the Citizen's Budget Committee was created due to the resignation of committee
member Ray Olsen. The vacant position was advertised both in the Daily Tidings and the City's
website.
Applications were received from Dee Anne Everson and Thomas T. Gaffey. According to
Oregon Budget Law, it is the local governing body's responsibility to appoint this vacancy.
Background:
The Budget Committee consists of the members of the local governing body and an ,equal
number of citizens at large. The citizen's are appointment by the governing body and serve
terms of three years. Terms are staggered so that about one-third of the appointed terms end
each year.
Council Options:
Appoint one applicant for a term ending December 31, 2006.
Staff Recommendation:
None.
Potential Motions:
Motion to appoint an applicant for a term to end December 31, 2006.
Attachments:
Application - Thomas T. Gaffey
Application - Dee Anne Everson
I....
1"_'1
CITY ()F
ASHLP~ND
APPLICATION FOR APPOINTMENT TO
CITY COMMISSION/COMMITTEE
Please type or print answers to the following questions and submit to the City Rt~corder at
City Hall, 20 E Main Street, or email christeb@ashland.oLus. If you have any questions,
please feel free to contact the City Recorder at 488-5307. Attach additional sh4~ets if
necessary.
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5. Additional Information
How long have you lived in this community?
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Please use the space below to summarize any additional qualifications you have for this
position
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OCT '2;, 2005
CITY ~OF
ASHLJ\.ND
APPLICATION FOR APPOINTMENT TO
CITY COMMISSION/COMMITTEE
. _;;...:3&
Please type or print answers to the following questions and submit to the City Recorder at
City Ball, 2QEJ0ain Street, or email christeb@ashland.or.us. If you have any questions,
please feel free to contact the City Recorder at 488-5307. Attach additional sheets if
necessary.
Name: Dee Anne Everson
Requesting to serve on: Budget Committee
(Commission/Committee)
Address: 1442 Windsor St., Ashland, OR 97520
Occupation: Executive Director, United Way_ Phone: Home: 482.8983
Work: 773.5339
Email: deeanne@jeffnet.org
Fax: 482.8993 or 773.7042
1. Education Background
What schools have you attended?
Stanford University Nonprofit Leaders Program
What degrees do you hold?
High School Diploma
What additional training or education have you had that would apply to this position?
I believe the Stanford University Nonprofit Leaders Program is extremely beneficial as
well as Rapport Leadership International Leadership I. I have attended numerous
trainings and conferences I believe would be beneficial.
2. Related Experience
What prior work experience have you had that would help you if you were appointed to
this position?
Previous to United Way, for the past 9 years, I was an economist. I served 13 years with
Valley National Bank in Phoenix Arizona and 3 years with the Greater Seattle Chamber
of Commerce as their economist. Additionally I have chaired the RVTD budget
committee and served as vice chair as well. I am a member of the Rogue Valley Council
of Governments budget committee also. For the past 15 years I have developed,
implemented and managed budgets that I was directly accountable for.
Do you feel it would be advantageous for you to have further training in this field, such
as attending conferences or seminars? Why?
While I do feel that I could bring positive experience to the budget committee, I have a
deep commitment to life long learning and could always strengthen my skills.
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3. Interests
Why are you applying for this position?
I have wanted to be in service to my town for some time and have shared it with many
people. The opportunity was pointed out to me and I feel I would grow and I would
bring skill to the position.
4. Availability
Are you available to attend special meetings, in addition to the regularly scheduled
meetings? Do you prefer day or evening meetings?
I do control my own schedule and if meetings were scheduled enough in advance to
accommodate the rest of my commitments I could make day meetings. I prefer day
meetings over evening because I'm fresher during the day although I would commit to
attendance in the evenings.
5. Additional Information
How long have you lived in this community?
We move to Ashland in January 1994. We lived here for 7 months and moved to Tucson,
Arizona. Within two month of being there we knew we wanted to be back in Tucson.
Upon conclusion of the academic year at U of A, we returned in May 1995 and have been
here since. So we've been here just over 10 years at this point in time.
Please use the space below to summarize any additional qualifications you have for this
position
I have been committed to community in each community where I have lived. I have
attached my resume to provide additional information. I look forward to the opportunity
to serve if approved. Thank you.
Date
Signature
~~.
.j-~
Dee Anne: Everson
1442 Windsor St.. Ashland. OR 97520
(541 )482-8983 (home); (541 )60 1-1685 (cell)
deeanne@jeffnet.org
Qualifications:
Over 25 years progressive management responsibilities:
* Leadership/tJanagement * Strategic Planning
* Mission Development * Public Speaking/Presentations
* Retreat Planning/Facilitation * Outcomes Based Ev"aluation
* Business/Profit Planning * Customer Service
* Research/Analysis * Publications/Events Production
* Development/tJembership * Staffing/Training
Work Experience:
1/96-present United Way of Jackson County, Executive Director, Medford, OR
Responsibilities: Executive Director, $1.3 million budget, board of directors of 30, staff of 4,
responsible for community building, raising and allocating funds. Community
building work has included an active role in bringing the Building a Learning
Community Core Course to the Rogue Valley, the tJeth Summit and Task Force
and the Poverty Summit. Have increased member agencies from 1. 9 to 34 and
programs from 23 to 47 since 1997. Have increased fundraising and community
building opportunities. Implemented outcomes-based evaluation. Implemented
Day of Caring -largest community volunteer event annually. Conducted bylaws
and governance reviews. Promoted to executive director November 1997. Prior
positions include acting director, campaign/ fund distribution manager and needs
assessment analyst.
8/94-12/95 Independent Economic Consultant, Tucson, AZ
Accomplishments: Various projects including solid waste management, market research,
demographic and real estate feasibility studies.
1/94 - 7/94 Arts Council of Southern Oregon, Membership Coordinator,
Medford, OR
Accomplishments: Redesigned sponsorship programs and directed most successful campaign in the
organization's history. Introduced cost-saving methods for membership
programs. Designed and conducted first membership survey. Increased
business sponsorships by 30 percent and increased retention by 5 percent.
Everson
Page 2
8/90 - 12/93 Greater Seattle Chamber of Commerce, Economist & Research
Manager, Seattle, WA
Accomplishments: Increased number of publications available for sale by 165 percent in three years.
Increased income by 44 percent in three years, turning department from net cost
to net income of $150,000. Reduced expenses by 6 percent annually.
Substantially reduced errors in directories. Assisted with total quality and
diversity implementation. Completed annual fundraising for Washington World
Affairs Fellows.
5/78-6/90 Bank One (Valley National Bank of Arizona), Economic: Analyst,
Phoenix, AZ
Accomplishments: 1986-90 - Economic AnalYst, Coporate Officer: researched, wrote and edited Arizona
Progress, researched Arizona Statistical Review, acted as economic bond
consultant for City of Phoenix, monitored metro economies, hancUed media
inquiries, conducted Arizona Business Confidence Survey.
Accomplishments: 1983-86 - Funds Management AnalYst, Coporate Officer: Monitored overnight flow
of funds, business/profit planning for seven divisions, prepared presentations to
board of directors and analysts, and implemented the asset/liability management
model.
Accomplishments: 1978-83 - Administrative Assistant: Prepared interest sensitivity analysis, funds
management flows and business/profit plans for division. Began as an entry-
level employee.
Special Skills:
Common sense. Good sense of humor. Strong team builder and coach. Organized. Able to
manage multiple priorities. Strong communication (written and verbal) and customer relations skills.
Work well under pressure and with all kinds of people. Computer literate with numerous software
packages.
Everson
Page 3
Publications:
United Way of Jackson County, Annual Report 1996-2001
Jackson County Human Service Needs Assessment Study, June, 1996
Bucks, Volume I, Issue I 1994 (editor for North American economic newsletter for teens)
The Entrepreneurial Guide to Research Departments, ACCRA Monograph, 1994
Greater Seatde Business Development Reports 1991-1993
Asia Pacific Economic Cooperative (APEC) International Media Guide 1993
Info-Guide Economic Articles 1991-1993
Arts Access Response Team Survey on Accessibility to the Arts Statewide Survey 1993
Women Involvement in the Greater Seatde Chamber of Commerce Study 1992
Strategic Plan for Seatde Mime Theatre 1992
Northwest Folklife Focus Group Moderator and Report 1992
Seatde Children's Museum Focus Group Moderator and Report 1992
Marketing N on- Profits in the 1990s (editor)
Arizona Progresses 1986-1990 (VNB monthly economic newsletter)
Arizona Statistical Reviews 1986-1990 (VNB annual economic review of Arizona)
Professional/Community Organization Involvement/Recognition:
Ashland: Oregon Busines Magazine named one of Oregon's 50 Great Leaders 2005
SODA Red Ribbon Essay Jduge
Oregon United Ways, President 2000-2001
Rogue Valley Civic League, Board Member
Evergreen Bank, Board Facilitator
Gold River Distributing, Retreat and Planning Consultant
Rogue Valley Council of Governments, Budget Committee
Rogue Valley Transportation District, Budget Committee, Chair
Rogue Valley Transportation District, Policies and Procedures Committee
Emergency Food & Shelter Program (FEMA) Board Jackson County Member
Medford/Jackson County Chamber of Commerce, Legislation Action Committee
Klamath Open Door Family Practice, Board Strategic Planning Consultant
Oregon Primary Care Association, Board Strategic Planning Consultant
Samaritan Counseling Service, Board Strategic Planning Consultant
Rogue Valley Civic League Facilitator
Leadership/Integrity Award from SODA
Ashland Daily Tidings Reader Panel
Ashland Schools Foundation Board Retreat Facilitator
Ashland Resiliency Coordinating Council, co-facilitator
Ashland High School Senior Project Judge
ArtWork Enterprises, Ine. Board Facilitator
Arts Council of Southern Oregon Board Facilitator/Development Committee
Ashland Senior Project Judge
Everson
Page 4
Tucson:
Seattle:
Phoenix:
a.k.a. Theatre board Retreat Facilitator
Goddard for Governor Campaign
Business Volunteer for the Arts Volunteer of the Year 1994
Asia Pacific Economic Cooperative International Media Center Volunteer
Graduate Alki Political Involvement Institute (campaign and election school)
Seattle Times Reader Panel
Grant Writer for Zion Preparatory Academy
ACCRA (a business organization of economic researchers) Member
Puget Sound Research Forum Board Member
Seattle Economists Club
Academic Decathlon Judge
Glendale Public Schools Volunteer Teacher
West Valley Child Crisis Center
Arizona AIDS Project
Junior Achievement Advisor.
Financial Women International
Valbanqueras (Valley Bank Women) Annual Auction Chair
CITY Ol~
ASH LAr\J D
Council Communication
Adoption of the Conservation Density Bonus Ordinance-Second Reading
Meeting Date: December 20, 2~ Primary StaffConta~t: Dick Wanderscheid, 55@
Department: Electric 2061 wandersd({llashland.oLus
Contributing Depart. Planning Secondary Staff Contact: Bill Molnar, 552-2042
Approval: Gino Grimaldi . IL' molnarb@ashland.oLus '~\.r-
l) Estimated Time: 5 minutes <};}
Statement:
This is an amendment to the City Land Use Ordinance that changes how Conservation Density bonuses
are earned. First reading was approved by the council on December 6,2005.
Background:
The City's current Land Use Ordinance has a provision which allows a 15% density bonus if conservation
measures are installed in the homes. It utilizes a simple table which lists measures and points associated
with the measures. A total of IS points must be earned from the table for each home in a development
that received the density bonus increase. Because of changes in current building practices and the lots
size of most new developments, it is quite easy for builders to comply with the necessary 15 points from
the table.
The City's Conservation staff, whose efforts relied heavily on the regional Super Good Cents Program to
advance new residential construction, began searching for a new program to replace the Super Good
Cents Program about 3 years ago. We evaluated a number of options and decided to purchase the license
rights to the Earth Advantage Program to achieve this task. It had the advantage of focusing on more than
just energy efficiency, was fuel blind and was flexible enough to allow builders many more options to
meet the program's standards. Presentations were made to both the Ashland City Council and Planning
Commission with the details of the Earth Advantage Program, before purchasing and implementing it.
The staff proposed an amendment to the ordinance that would allow a 15% increase in density of 85% of
all homes in the development that were to Earth Advantage Standards.
This was presented to the Planning Commission on June 28, 2005 at a study session. The Planning
Commission took no action on the item because some Commissioners were concerned about the
complexity of the program compared to the simpler table version of the current system. There was also a
concern expressed about some ofthe requirements of the program which seemed to some Commissioners
to be outside the scope of resource efficiency.
This issue was again presented to the Planning commission on August 9,2005 for action. Staffhad
prepared a memo which attempted to address some of the earlier expressed concerns and Conservation
staff spent about 30 minutes answering questions and discussing this issue with the planning commission.
1
~.l'
After this discussion, the Planning Commission voted 6-3 to recommend that the City Council amend the
ordinance to allow a 15% Conservation Density Bonus if 85% of the homes are constructed to Earth
Advantage Standards as recommended by both the Planning and Conservation staffs.
This issue was brought to the Mayor and Council in a study session on October 13,2005. At this session,
it was decided to change the amendment to require 100% of the homes be built to Earth Advantage
Standards to earn the bonus. The attached ordinance that includes this requirement was passed to first
reading on December 6, 2005.
Related City Policies:
There are a number of City policies in the City's comprehensive plan that is related to this ordinance
amendment.
Chapter XI-Energy, Air and Water Conservation - of Ashland's Comprehensive Plan describe the
community's philosophy and principles with respect to the conservation of critical natural resources.
The goals associated with Chapter XI-Energy, Air and Water Conservation-are outlined as follows:
Goals: The City shall strive, in every appropriate way, to reduce energy consumption within the
community. Water conservation and air quality enhancement should also be promoted.
Programs should also be promoted. Programs should emphasize greater efficiency in end
use, rather than sacrifices in living standards.
In general, policies that effect change through a combination of economic incentives and public education
shall be considered more appropriate than policies involving strict legal requirements or mandates.
The City shall give due attention to energy and resource conservation and air quality enhancement in all
planning actions and city activities.
Chapter XI of the Comprehensive plan identifies numerous Council policies relative to resource
conservation and the establishment of programs and incentives to achieve this goal. These appear to
endorse and encourage economic incentives and public education over strict legal mandates. Staff has
identified one specific policy that recognizes the benefits of the bonus point code provision. The plan
policy not only reflects the past success of such code provision, but also clearly requires that these
incentives "be preserved and maintained in future version" of the land use ordinance.
Policy
Implementine: Ordinancl~
XI-5 Land Us Planning an Zoning
A) The energy efficiency density bonuses in
The City's performance standard ordinance
have been very successful in encouraging
new homes to be built more efficiently than
Oregon building code requirements. This
bonus shall be preserved and maintained in
future versions of this code.
18.88 Ashland Municipal Code
Council Options:
Approve the second reading of the ordinance amending Chapter 18.24, 18.28, and 18.88 of the Ashland
Municipal Code.
Staff Recommendation:
Planning and Conservation Staff recommend the Council approve the second reading of th{~ attached
Ordinance.
2
CITY 40F
ASH L/\.N D
Potential Motions:
Move to approve Second Reading of the attached Ordinance amending Chapter 18.24, 18.28 and 18.88 0
the Ashland municipal Code.
Attachments:
Ordinance Amending Chapter 18.24, 18.28, and 18.88 of the Ashland Municipal Code.
3
~.,
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTERS 18.24, 18.28, and 18.88 OF THE
ASHLAND MUNICIPAL CODE - LAND USE ORDINANCE, REGARDING
CONSERVATION DENSITY BONUS POINT CALCULATIONS FOR
RESIDENTIAL DEVELOPMENT
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1. Section 18.24.040.8.3 of the Ashland Land Use Ordinance shall be
modified as follows:
"3.a. Conservation Housing--100% of the homes or residential units approved for
development, after bonus point calculations, shall meet the minimum requirements for
certification as an Earth Advantage home, as approved by the Ashland Conservation
Division under the City's Earth Advantage program as adopted by resolution ---maximum
15% bonus."
SECTION 2. Section 18.28.040.8.3 of the Ashland Land Use Ordinance shall be
modified as follows:
"3.a. Conservation Housing--100% of the homes or residential units approved for
development, after bonus point calculations, shall meet the minimum requirements for
certification as an Earth Advantage home, as approved by the Ashland Conservation
Division under the City's Earth Advantage program as adopted by resolution ---maximum
15% bonus."
SECTION 3. Section 18.88.040.8.3 of the Ashland Land Use Ordinance shall be
modified as follows:
"3.a. Conservation Housing--100% of the homes or residential units approved for
development, after bonus point calculations, shall meet the minimum requirements for
certification as a Earth Advantage home, as approved by the Ashland Conservation
Division under the City's Earth Advantage program as adopted by resolution ---maximum
15% bonus."
The foregoing ordinance was first READ on the ~ day of December, 2005,
and duly PASSED and ADOPTED this day of ,2005.
8arbara Christensen, City Recorder
SIGNED and APPROVED this
day of
,2005.
John W. Morrison, Mayor
.'
CITY OF
ASH Li\.N D
Council Communication
Resolution Setting a Public Hearing to Consider the Vacatil:>n of an
Unopened Alley
Meeting Date: December 20, 2005
Department: Public Works/ En~eering
Contributing Departments: Plannin~n recorder; Parks
Approval: Gino Grimaldi V
^~
Statement:
A petition calling for the vacation of an unopened 20 foot wide alley located between Ditch Road and North Street (vacated)
has been received and has been reviewed by Public Works, Planning and Parks Department.
Primary Staff Contact: James H. Olson, 552-2412
E-mail: olsonJ@ashland.or.us
Secondary Staff Contact: Bill Molnar, 552-2042
E-mail: MolnarB@ashland.or.us
Estimated Time: 10 minutes
'JD
The vacation request was considered at the November 8, 2005 regular Planning Commission meeting where a unanimous
decision to approve the proposed vacation was received.
A public hearing is required to continue the vacation process.
Background:
Petition Requirements:
A petition for vacation of the alley was presented by Brian and Diane Smith who reside at 290 Skycrest Drive and own 1.02
acres of land fronting the southerly boundary of the alley for its entire length. The Smith property, referred to as tax lot
391 E5DC 2800 extends from Ditch Road on the east to Skycrest Drive on the west. The petition contains seventeen
signatures and represents 16 lots. As required by state statutes all of those property owners abutting the alley are included
on the petition and over two-thirds of the "affected area" is also represented on the petition. All signature have been verified.
A copy of the petition is attached.
Allev Statistics:
The 20 foot wide alley was dedicated to the City in 1880 as part of the Woolens Addition. The alley originally connected
North and South Streets which were vacated in 1906 under Ordinance No. 275. The west end of the allE~y was vacated in
1992 under Ordinance No. 2694 so that the remaining alley has no westerly connection to any public street and is
essentially a dead end.
The alley has never been opened for access neither vehicular nor pedestrian and with over a 25% grade it is doubtful that it
could ever serve as a vehicular way. The alley has, however, been utilized as a utility corridor as a six inch sanitary sewer
main was constructed within the alley right of way in the 1950s. The sewer main is still active and must be protected with a
10 foot wide public utility easement if the alley is vacated.
Plannino Action No. 2005-01476:
The vacation request is a result of a planning action by Brian and Diane Smith to divide their existing lot at 290 Skycrest
Drive into two lots. The planning application was multi-faceted in that it included the following elements along with the land
partition request:
G:\pub-wrksladmin\PB Council\Street Vacations Dedications\CC Alley Vacation Ditch Rd North St Pb Hring 20Dec05.doc
~~.
...~
1. Proposal to vacate the unopened public alley.
2. Request for a variance to the minimum lot width and size.
3. A physical constraints review for creation of a parcel with slopes in excess of 25% and removal of three black
oak trees.
The land partition relies upon the vacation of the alley, however an alternate plan is available if the alley is not vacated. The
planning commission unanimously approved planning action 2005-01476 and the proposed alley vacation and further
moved to recommend the alley vacation to Council. (see attached planning commission minutes)
Compensation offered for the Vacation of the Alley:
Although it would be difficult to develop because of the steep grades and lack of connectivity at the weste!rn end, the alley
could offer a possible pedestrian route. As compensation for the loss of the alley right of way, the applicant has offered to
dedicate a 0.38 acre parcel of land as parks open space for potential trail purposes. With the alley vacation the City would
relinquish 5,457 square feet of right of way, but would receive in retum 16,701 square feet of open space. By providing a
much wider (147.8 feet) parcel of land it would be easier to construct a trail system, using switchbacks, where necessary,
from the Ditch Road to the Hald trail system. Parks Director, Don Robertson has expressed support for this possible
acquisition. A copy of the potential trail system map is attached.
Reservations & Conditions:
It is suggested that the following conditions be appended to the vacation of the alley, if approved:
1. A ten foot wide public utility easement be reserved over the existing sanitary sewer main.
2. The applicant grant an approximately 0.38 acre parcel of land to the City for Parks open space.
Related City Policies:
Amc Chapter 4.18 sets guidelines for City Planning Commission and staff review of vacations and further refers to the
Oregon Revised Statutes for procedural control. Vacation of public rights-of-way within incorporated is specified under ORS
Section 271.080 through 271.120.
Council Options:
Council may accept the petition and approve the resolution setting a public hearing;
OR
Council may deny the petition and terminate the vacation process.
Staff Recommendation:
Staff recommends approval of the attached resolution setting a public hearing for the vacation of an unopened alley between
Ditch Road and North Street (vacated).
Potential Motions:
Council may move to approve the resolution setting a public hearing for the vacation of an unopened alley.
Council may move to table the action pending further study of the proposed vacation.
Attachments:
Resolution
Vicinity Map
Detail Map
Petitions
Map of Proposed Partition
G:\pub-wrks\admin\PB Council\5treet Vacations Dedications\CC Alley Vacation Ditch Rd North 5t Pb Hring 20Dec05.doc
2
=~,
RESOLUTION NO. OS=----
A RESOLUTION SETTING A PUBLIC HEARING TO HEAR A PETIITION FOR,
AND ANY OBJECTIONS TO THE VACATION OF AN UNOPENED ALLEY
BETWEEN DITCH ROAD AND NORTH STREET (VACATED)
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. Pursuant to Ashland Municipal Code Chapter 4.16 and ORS :271.080 to
271.150, the City Council of the City of Ashland will conduct a public hearing on January
17,2006 at 7:00 PM in the Council Chambers, 1175 East Main Street, Ashland Oregon,
to hear the petition for, and any objections to, the vacation of a portion of an unopened
alley between Ditch Road and North Street (vacated) as described on the attached
Exhibits A & B.
SECTION 2. The City Recorder is directed to give notice of the petition and hearing by
publishing a notice in the Daily Tidings, once each week for two consecutive weeks
prior to the hearing and such other notice as may be required by ORS 271.110.
SECTION 3 This Resolution takes effect upon signing by the Mayor.
This resolution was read by title only in accordance with Ashland Municipal Code
~2.04.090 duly PASSED and ADOPTED this
day of
,2006.
Barbara Christensen, City Recorder
day of
,2006.
SIGNED and APPROVED this
John W. Morrison, Mayor
PAGE 1 - RESOLUTION
G:\pub-wrks\admin\PB Council\Street Vacations Dedications\Resolution Alley Ditch North Public Hearing 12 05.doc
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EXHIBIT B
Commencing at the Southeast Corner of Lot 27 of Woolens Addition to the City of
Ashland, Oregon, according to the Official Plat thereof, now of record in Jackson
County, Oregon; thence West, along the south line of said Lot 27, 131.00 feet to the
southwesterly line ofthe Ditch Road as described in Volume 109, Page 153, Dec~d
Records, Jackson county, Oregon, being the Point of Beginning; thence continuing West,
along said south line of Lot 27, 269.00 feet to the west line of North Street as vacated per
V olume 223, Page 404 of said Deed Records; thence along said west line, South~ 20.00
feet to the north line of Lot 28 of said Woolens Addition; thence along said northline,
East, 276.71 feet to said southwesterly line ofthe Ditch Road; thence along said
southwesterly line, North 210 05' 00" West, 21.43 feet to the Point of Beginning.
January 28, 2005
ir.\,
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LAND SURVEYOR. J
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Date Filed:
PETITION
We the under8igoedprope'rty owners res4E1fng on or near S"jTcr <; s t Dr i ve
i.n Ashland Or~goD do hereby petition the City Council to initiate
proceedings to vacate the above mentioned public right-ot-way, bein~1 further described
as tollows:
See Attached exhibit 'A'
We do further warrant that the signatures below represent 100% of the properties
abutting the proposed vacation, and at least 66%% of the affected area which lies within
200 feet on either side and 400 feet from the ends of the public right-of-way proposed for
vacation.
2
3
NAME
If'"
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lfaO :Srt; Cte$'t ~-
30 S SK:':12~.J 7 0 L
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TAX LOT NO.
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County ot Jackson )
)
State of Oregon )
:;>OID
30/5
.<'~. 1 S' /
I, ;J;v~ 0( '- J'1011 t ~eing one of the principal proponents of the
proposed vacation do hereby subscribe and swear that the above signatures were taken
in my presence and are the signatures of the p~r,~ns..o ~.~.' rope IiUttin.9 or within
the. area affected by the Proposed vacation. Ii .... '/" < ___....
(:;i. ~ // ;>
~ \1\ Signature
~c~
My Commission Expires il. ~ 'O~
OFFICIAL SEAL
JASO N T SOUDERS
NOTARY PUBLlC-OREGON
COMMISSION NO. 379435
MY COMMISSION EXPIRES APR. 8, 2008
G:DawnlStreetIVacation Petltlon.wpd
f~;2
Date Filed:
PETITION
We the undersigned property OWAers residing on or near 2'':YC:.':"8st Dri V8
-In Ashland Or~goD do hereby petition the City Council to initiate
proceedings to vacate the above mentioned public right-of-way, bein!J further described
as follows:
See Attached exhibit "A'
We do further warrant that the signatures below represent 100% of the properties
abutting the proposed vacation, and at least 66%% of the affected area which lies within
200 feet on either side and 400 feet from the ends of the public right-of-way proposed for
vacation.
2
3
4
5
6
7
8
9
ADDRESS
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10
County of Jackson )
)
State of Oregon )
I,DIMe. STt:'frvr<5rl rn+ ,being one of the principal proponents of the
proposed vacation do hereby subscribe and swear that the above signatures were taken
in my presence and are the signatures of the persons owning property abutting or within
the area affected by the proposed vacation. ,
'''~~
~ }D. Signature. -
Not Public
My Commission Expires 1-1. B'oB
G:DawnlStreellVacallon Pel~lon.wpd
OFFICIAL SEAL
JASON T SOUDERS
NOTARY PUBUC-OREGON
COMMISSION NO. 379435
MY COMMISSION EXPIRES APR. 8,2008
May 26, 2005
To Whom It May Concern:
I am writing to convey our organizations support of the alley vacation described in the
attachment, providing the owners, Brian L. Smith and Diane Steffey-Smith grant a public
access easement for the described trail in the same attachment. Providing usable trail
access in place of an unusable alley makes sense for all parties involved. Their easement
is described from the intersection of their northerly property line and "Ditch Road" south
by southwest, roughly parallel to the Ditch Road., transecting their back lot.
Rob Cain
AWTA
President
279 Granite Street
Ashland, OR 97520
UIUlUU..'UUluuuuluuunumollDlDlOU.....u.uDIDIlDmotmmmnnnmm..lU.nn
May 5, 2005
R~ftPt~
To Whom It May Concern:
We the undersigned. are in favor of the alley vacation described in attached "Exhibit An
providing, the owners, Brian L. Smith and Diane Steffey-Smith, of290 Skycrest Drive.
grant an easement for the purpose of a public trail, from the intersection of their northerly
property line and "Ditch Road" south by southwest, roughly parallel to "Ditch Road",
across their property as approximately shown on "Exhibit BU.
~ ~~~~(hv-
" ~man \ Susan,.<fbapman
390 Orchard Street ./ ~
Ashland, OR 97520 ~ h/i/ '. ' '
1IIDD1DIU..IU.mDDnnnmn.mIDD.~.......ulU nnn...nmOnmlnulnnDlllmnnnllrnnmotDIIlnllllnlmll
From:
To:
Date:
Subject:
Don Robertson
Jim Olson
8/2/20051:25:18 PM
Smith alley vacation request
Jim,
I just met with Brian and Diane Smith reqarding their vacation request.
The alley connects to Ditch road and their own property. The Ditch road is currently used by many hikers,
but this alley as is provides no current or future improvment to the hiking conditions. In exchange for the
alley vacation, the smiths have proposed a new pedestrian access easment (PAE) be placed roughly
parallel to the ditch road but angled towards city open space property, While it will not complete a link to
the property, it will start one that can be continued to provide better access onto current city property and
eventually link up to sky crest drive along another PAE.
From my prospective I think it should be granted with the provision that it be replaced with a perminent
PAE, surveyed route approved by Jeff McFarland our trails coordinator.
thanks
don
CITY OF
ASH LAN D
ASHLAND PLANNING COMMISSION
REGULAR MEETING
NOVEMBER 8, 2005
MINUTES
CALL TO ORDER - Chair 10hn Fields called the meeting to order at 7 :05 p.m. at the Civic Center, 1175 E. Main Street, Ashland,
OR.
Commissioners Present:
10hn Fields, Chair
Russ Chapman
Olena Black
Michael Dawkins
Allen Douma
Dave Dotterrer
10hn Stromberg
Mike Morris
Jack Hardesty, present
Bill Molnar, Interim Planning Director
Maria Harris, Senior Planner
Mike Reeder, Assistant City Attorney
Sue Yates, Executive Secretary
Council Liaison:
Staff Present:
ANNOUNCEMENTS - The deadline for applying for the vacancy on the Planning Commission is Friday, November 18th.
APPROVAL OF MINUTES
September 27,2005 - Continuation of Northlight Hearing - Black asked under item 4 where she spoke, to delete "it" and add "the
Design Standards." Dotterrer/Douma m/s to approve the minutes as corrected. Voice Vote: The minutes were approved.
October 11, 2005 - Regular Meeting - Douma/Dotterrer m/s to approve the minutes. V oice Vote: The minutc:s were approved.
PUBLIC FORUM
COLIN SWALES, 461 Allison Street. showed a color coded map oflots in the downtown and discussed where he felt it appropriate to
have 40 foot buildings in the downtown. He said we should preserve Primary Contributing buildings and those buildings on the
National Register. The non-compatible, non-historic, and non-contributing could be remodeled or tom down and rebuilt. Build
smaller buildings on smaller lots, not maximizing at the 40 foot height, leaving the larger lots for larger buildings also recognizing
the bulk and scale of the neighboring buildings. The color coded map is available at the library.
TOM GIORDANO, 2635 Takelma Way, felt strongly that we need to have an urban design form for the downtown, looking at the
downtown in a comprehensive way. Dawkins noted the Commissioners that are working on the Downtown Plan are looking at
that.
TYPE II PUBLIC HEARINGS
PLANNING ACTION: .2005-01674
SUBJECT PROPERTY: 11 First Street
OWNER/APPLICANT: Ron & Carrie Yamaoka
DESCRIPTION: Request for reconsideration of the Planning Commission decision reached at the October 11, 2005 Planning
Commission meeting requesting Site Review approval for a three-story, mixed-use building comprised of restaull'8nt space.
office space and two residential units for the property located at 11 First St. The proposed building Is approxlmlrtely 4,500
square feet In size, and Is located In the Downtown and Detail Site Review zones. A Tree Removal Pennlt Is requested to
remove four trees sized six Inches diameter at breast height and greater.
Reconsideration
Fields, as guided by the City Attorney, has concluded this action should be reconsidered and continued at next month's
meeting because of an error in the ordinance interpretation. A revised plan has been submitted by the applicant
addressing the vision clearance issue. This will also give the Historic Commission an opportunity to review 8JllY revisions
ASHlAND PLANNING COIIIISSION
REGUi.AR lEErING
_UTES
NOVEMBER 8, 2005
1
Reconlldiratlon
Fields decided not to exercise his power to ask for a reconsideration of this action because he does not believe any new
information has emerged. Fields would like the Commission to instruct Staff as to what standards and whllt issues should be
included in the denial.
Douma/Dotterrer m/s to reconsider. Roll Call: Dotterrer, Morris, Douma voted "yes" and Dawkins, Black, Fields, Chapman and
Stromberg 'Voted "no" to reconsider. The motion failed and the action will not be reconsidered.
The Commissioners discussed at length whether or not they should give Staff guidance for die findings. During deliberation of
this action at the September 27, 2005 Planning Commission meeting, there was no clear consensus on eacb separate issue. Fields
asked each member to voice any reasons they might have had for denial that were not part of the motion at the meeting on the 27th.
Chapman voted for denial because the project was represented as two lots and it failed to meet the commercial requirement on the
back lot.
Black voted to deny because it did not meet four of the criteria of the Downtown Design Standards. The sc:tback issue was not
clear. She had problems with the height, stepping back and staggering of the buildings as well as the 80 foot building width and
lots greater than 80 feet in width. She had concerns with the setback on the comer, the sense of entry at the comer of First and
Lithia Way as well as not maintaining the rhythm of buildings. She did not have enough information about the future of Lithia
Way.
Dawkins did not like the bulk and scale of the building. There were no real differences in the height of the buildings. He objected
to the building being three stories high and as long as the buildings on the Plaza. An approval would have overturned the setback
already established on Lithia Way. The setback should be protected for the future. .
Fields said he would like to see a good sized sidewalk and the building built to the street. His reasons for dcmial were keeping the
entire ground floor commercial and bulk and scale of the buildings (articulation, building height and size). It would make sense to
have six residentiallive/work units. The buildings have more glass than building and that much glass does 110t complement the
downtown. The public needs to be able to see into the commercial areas.
Douma denied the project because there are two lots and one did not meet the requirement of the zoning district. He had concerns
about bulk and scale.
Dotterrer concurred with Chapman and Douma.
Stromberg voted for denial because the balance between residential and commercial went too far and it was difficult to determine
if the project was considered one or two lots. There were several aspects of the Design Standards that were 110t met, including
bulk and scale. He did not like the sense of entry. If the front yard setback is along First Street, then the setback should be 20 feet,
if the plain language of the ordinance is applied. Though minor, the project doesn't satisfy the vision clearance. He does not
believe the case was made that the transition from the townhouses to the adjoining neighborhood was made. He felt the putpose of
the separation between buildings was not met as it was intended to reduce the mass, not making the separation wide at the front
and narrow at the back. He did not like the height of the tower. The variation in heights did not meet the bw:den of proof.
Morris agreed with Chapman, Douma and Dotterrer with regard to the commercial versus residential after thc~ lot split. There was
not adequate discussion of the bulk and scale during the Commissioners' discussion.
PLANNING ACTION: 2005-01476
SUBJECT PROPERTY: 290 Skycrest Drive
OWNER/APPLICANT: Brian & Diane Smith
DESCRIPTION: Land Partition to divide one existing parcel Into two parcels Including one flag lot for the propel1y located at
290 Skycrest Dr. The application Includes a proposal to vacate the existing public alley right-of-way to the north of the
property. A Variance Is requested to minimum lot width requirement and the minimum lot size. The minimum lot width
required Is ,100 feet, and the proposed lots are Irregularly shape with portions under 100 feet In width. The mlnln1um lot IIze
In the RR-.5 zone Is .50 of an acre, and the propOled lots are .36 of an acre. The eastern portion of the property,
approximately .38 of an acre, Is proposed as dedicated open space. A Physical Constraints Review Permit II requested to
create a parcel with slopes 25% and greater and remove three Black Oak trees greater than 12 Inches diameter at breast
height In Hillside lands.
ASHLAND PLANNING COMMISSION
REGULAR IEETlNG
MINUTES
NOVEIIBER 8,_
4
.
Site Visits and Ex Parte Contactl
Chapman walked the site a couple of months ago and a gentleman on site identified himself to Chapman. Today he walked the site
down the back slope.
Black walked the site a couple of months ago. He met the owner and they talked about how to identify a white and black oak tree.
She has since had communication with the owner on Comprehensive Plan issues. She believes she can be unbiased.
Dawkins, Dotterrer and Fields had a site visit.
Douma and Stromberg had nothing to report.
Morris had a site visit. He reported that he just completed a job that Kerry KenCaim was working on at th.e same time. He did not
believe he had a conflict of interest.
STAFF REPORT
Harris said there are two pieces to the application. The bulk of it is a land use application. The second piece is a request for a
vacation of an alley.
The land use application has three components. The first is a request to create a new flag lot. Secondly, th.ere is a request for two
Variances - I) the middle lot width of 100 feet and 2) for the minimum lot size. Third, there is a request for a Physical Constraints
Review permit to remove three trees greater than 12 inches diameter at breast height in Hillside Lands and to create a new lot that
is in Hillside Lands.
Harris gave the property description and location. The Tree Plan identifies 118 trees with three black oak trees slated for removal.
All of the land is considered Hillside because it slopes 25 percent and greater. There is an existing single fiunily home in the
southwest comer of the property. She described the proposed partition by way of the site plan. The partition relies on the vacation
of the alley. The alley right of way width is 20 feet.
The main discussion point is granting of the two Variances. The Staff Report discusses them in further detail. The lot width is
calculated by averaging the different areas. Each lot size is a minimum one-half acre. Staff has taken a cOIlServative approach.
The applicant has argued the site is unique or unusual because it is surrounded by lots that are smaller than one-half acre. It is
unique because it is a large lot but one of the only ones in the area that could have possibly two home sites. Staff may not agree
with the applicant's argument that this application is a benefit because it is using the property to its intended density. Goals and
policies in the Comprehensive Plan talk about looking at lower densities in areas that have physical constraints. There is always
th~ balancing of what makes the most sense. However, the obvious benefit is the public open space and use of the property in a
trail dedication whether it is through an easement or a lot.
Harris showed the alternative scenario as discussed in the Staff Report. This scenario assumes the alley vacation would
not happen, leaving a relatively small area to build on. Would that be an adequate area upon which to build?
PUBLIC HEARING
LARRY MEDINGER, 115 Fork, said he is the technical person, builder and friend of the applicant. He outlined the buildable
area on the site plan. There is a sewer line easement across the slope going over to the alley and down to Ditch Road.
Dotterrer/Black m/s to extend the meeting to 11 :00 p.m. Everyone approved.
Medinger said he believes the plan they are presenting is the best planning for the site. They are proposing two lots at .36
acres and one at .4 acres. They are proposing to set aside a significant amount of open space at the bottom of the
property. They are trying to relate to the other lots in the neighborhood. The distance from the south property line to the
north property line is 68 feet, making for a nice sized lot. The solar access is governed by a 16 foot solar fence, allowing
for a substantial house. He showed the proposed dedicated open space and trail. Their map says "easement" but the idea
is to dedicate that area, including the applicant's one-half of the vacated alley to the City.
BRIAN SMITH, 290 Skycrest, stated they are proposing the partition so they can ultimately build a small, modest house and
dedicate the lower portion to the City. He noted that by dedicating the lower portion of the lot, a hiker, jogger, trail user
can traverse the slope and at some point tie into the Hald trail system. It gives more options to walkers and joggers.
There is another neighbor who is not willing to dedicate the property that would be the connecting piece.
Smith mentioned a letter from David Chapman endorsing the vacation of the alley only if the Smith's offered a trail
easement to the City. There is also a letter from Don Robertson, Parks and Recreation Dept., favoring the a1l4~y vacation
as long as they can have the trail option. There was a letter from Jim Olson, City Engineer. There was a letter from Rob
ASHLAND PLANNING COMMISSION
REGULAR MEETING
_UTES
NOVEMBER 8, 2005
5
.
Cain, President of the Ashland Wood1ands and Trails Association giving support of the alley vacation in exchange for a
trail easement
Medinger said the Variances are minor and the sizes are well within the mid-range lots in the Skycrest subdivision. This
lot is unique because it is the only lot over one acre that has two building sites that can be developed.
Staff Response. Harris said looking at the alternate scenario, the dimensions average 67 feet. The assertion by Medinger
that this proposal could come forward and not require Variances is probably not accurate.
Rebuttal. Medinger said you don't average the flag drive in the lot width.
COMMISSIONERS' DISCUSSION AND MOTION
Douma!Black m/s to approve PA2005-01476 with the attached 19 Conditions of approval. Roll Call: Unanimous.
---1 Douma/Stromberg mls to recommend to the Council vacation of the alley right of way to the north of 290 Skycrest. Roll
Call: Unanimous.
OTHER
Meeting Date Change - The December Planning Commission meeting will be held, Monday, December 12th at 7:00 p.m.
The Hearings Board will be held on the same date at I :30 p.m. in the Council Chambers. Dotterrer will be absent.
The Commissioners were asked to keep their packets from this month for the next meeting.
ADJOURNMENT - The meeting was adjourned at 11 :00 p.rn.
RespectfUlly submitted by
Susan Yates
Executive Secretary
ASHLAND PLANNING COMMISSION
REGULAR MEETING
_UTES
NOVEIIBER 8, 2005
6
DOCUMENTS SUBMITTED AT THI
DECEMBER 20, 2005
CITY COUNCIL MEETING
310 Oak Street
clo P.O. Box 201
Ashland, OR 97520
19 December 2005
.-:,
Ashland City Council
20 East Main Sf.
Ashland, OR 97520
Re: Sign code revision for buildings with more than
two business frontages
Dear Council Members,
Please see the following pages regarding the sign code revision forwarded to
you in the summer by the Planning Commission.
We believe we understand the principal concern of the Council, and we added
language to ensure business frontages in excess of two will not be as prominently
"signed" as the two primary frontages. An allowable sign area of 50% on additional
business frontages of what might be permitted for the two designated primary
business frontages should lessen the visual impact.
Our tenants at 130 "A" Street do want, need and deserve signs. We hope this
modification will ensure they may have them early next year.
We do not believe sign applications should trigger site reviews. Other
applications already do that.
Thank you.
Sincerely,
~~
Brent Thompson ~
~8-~407 r:7 ~
QarJ!iQAtL}-J~i~ rn l..Y. LfJIt)
Barbara Thompson Chilla
SECTION 18.96.080 Commercial-Downtown Overlay District (C-I-D).
Signs in the Commercial-Downtown Overlay District shall confonn to the following regulations:
A. Special Provisions.
1. Frontage. The number and use of signs allowed by virtue of a given business
~ frontage shall be placed only upon such business frontage, and no budding shall be
- -r tilreGitea witH mere tftQft tV19 lnlsinefHl fnud6lMiE, for buildings with multiple business
frontages the sign area for business frontages exceeding two She)11 be 50%
of the normal area permitted.
2. Aggregate number of signs. The aggregate number of signs for each business shall
be two signs for each business frontage (a frontage with an entrance/exit open to the
general public).
3. Material. No sign in the Commercial-Downtown Overlay District shall use plastic as
part of the exterior visual effects of the sign.
4. Aggregate area of signs. The aggregate area of all signs established by and located
on a given street frontage shall not exceed an area equal to one square: foot for each
lineal foot of street frontage. Aggregate area shall not include nameplates, and real
estate and construction signs.
B. Types of Signs Permitted.
1. Wall Signs.
a. Number. Two SIgnS per building frontage shall be permitted for each
business, or one sign per frontage for a group of businesses occupying a
single common space or suite.
b. Area. Total sign area shall not be more than one square foot of sign area for
one lineal foot of legal business frontage. This area shall not exceed sixty
square feet.
c. Projection. Signs may project a maximum of eigliteen inches from the face
of the building to which they arc at~ached, provided the lowest portion of the
sign is at least eigllt feet above grade. Any portion lower than eigllt feet may
only project four inches.
d. Extension above roof line. Sings may not project above the roof or eave line
of the building.
2. Ground Signs.
a. Number. One sign, in lieu of a wall sign, shall be permitted for each lot with
a street frontage in excess of fifty lineal feet. Corner lots can COWlt one street
frontage. Two or more parcels of less than fifty feet may be combined for
purposes of meeting the foregoing standard.
b. Area. Signs shall not exceed an area of one square foot for c:ach two lineal
feet of street frontage, with a maximum area of sixty square feet per sign.
c. Placement. Signs shall be placed so that no sign or portion thereof shall
extend beyond any property line of the premises on which such sign is
located. Signs on comer properties shall also comply with the vision
clearance provisions of Section 18.96.060(F).
d. Heigbt. No groWld sign shall be in excess of five feet above grade.
3. Marquee or Awning Signs.
a. Number. A maximum of two signs shall be permitted for each business
frontage in lieu of wall signs.
b. Area. Signs shall not exceed the permitted aggregate sign ama not taken up
by a wall sign.
c. Projection. Signs may not project beyond the face of the marquee if
suspended, or above the face of the marquee if attached to and parallel to the
face of the marquee.
d. Height. Signs shall have a maximum face height of nine inches if placed
below the marquee.
e. Clearance above grade. The lowest portion of a sign attached to a marquee
shall not be less than seven feet, six inches above grade.
f. Signs painted on a marquee. Signs can be painted on the marquee in lieu of
wall signs provided the signs do not exceed the permitted aggregate sign area
not taken up by wall signs.
4. Projection Signs.
a. Number. One sign shall be peffilitted for each business or group of
businesses occupying a single common space or suite in lieu of a wall sign.
b. Area. Except for marquee or awning signs, a projecting sign shall not exceed
an area of one square foot for each two feet of lineal business frontage that is
not already utilized by a wall sign. The maximum area of any projecting sign
shall be 15 square feet.
c. Projection. Signs may project from the face of the building to which they are
attached a maximum of two feet if located eight feet above grade, or three
feet iflocated nine feet above grade or more.
d. Height and extension above roof line. Signs shall not extend above the
roofline, eave or parapet wall of the building to which they are attached, or be
lower than eight feet above grade.
e. Limitation on placement. No projecting sign shall be placed on any frontage
on an arterial street as designated in the Ashland Comprehensive Plan.
SECTION 18.96.090 Commercial, Industrial and Employment Districts.
Signs in conunercial, industrial and employment districts, excepting the Downtown-Commercial
Overlay District and the Freeway Overlay District, shall conform to the following regulations:
A. Special Provisions.
1. Frontage. The number and area of signs allowed by virtue of a given business
~ frontage shall be placed only upon such business frontage and He \)yileiHg sRaIl \)8
- _ 8n~eiteQ '",ita FROf& than two busim~ss frontag.etltor buildings with multiple business
frontages tile sign area for business frontages exceeding two slwll be 50%
of ",e normal area permitted.
2. Aggregate number of signs. The aggregate number of signs for each business shall
be two signs for each business frontage (a frontage with an ,entrance/exit open to the
general public).
3. Aggregate area of signs. The aggregate area of all signs established by and located
on a given street frontage, shall not exceed an area equal to one square foot of sign
area for each lineal foot of street frontage. Aggregate area shall not include
nameolates. and temoorarv real estate and construction signs.
. .
n. Types of Signs Pennitted.
1. Wall Signs.
a. Number. Two signs per building frontage shall be pennitted for each business,
or one sign per frontage for a group of businesses occupying a single common
space or suite.
b. Area. Total sign area shall not be more than one square foot of si~n area for one
lineal foot of legal business frontage. lbis area shall not exceed sixty square
feet.
c. Projection. Except for marquee or awning signs, a projecting sign may project a
maximum of eighteen inches from the face of the building to which they are
attached, provided the lowest portion of the sign is at least eight feet above grade.
Any portion lower than eight feet can only project four inches.
d. Extension above roof line. Signs may not project above the roof or eave line of
the building.
2. Ground Signs.
a. Number. One- sign shall be penllitted for each lot with a street frontage in excess
of fifty lineal feet. Comer lots can count both street frontages in dl~termining the
lineal feet of the street frontage but only one ground sign is pennitted on comer
lots. Two or more parcels of less than fifty feet may be combined for purposes of
meeting the foregoing standard. _
b. Area. Signs shall not exceed an area of one square foot for each two lineal feet of
street frontage, with a maximum area of sixty square feet per sign.
c. Placement. Signs shall be placed so that no sign or portion thereof shall extend
beyond any property line of the premises on which such sign is located. Signs on
comer properties shall also comply with the vision clearance provisions of
Section 18.96.060(F).
d. Height. No ground sign shall be in excess of five feet above grade.
3. Awning or Marquee Signs. .
a. Number. Two signs shall be penllitted for each business frontage in lieu of wall
Signs.
b. Area. Signs shall not exceed the pennitted aggregate sign area not taken up by a
wall sign.
c. Projection. Signs may not project beyond the face of the marquee if suspended,
or above or below the face of the marquee if attached to and parallel to the face
of the marquee.
d. Height. Signs shall have a maximum face height of nine inches if attached to the
marquee.
e. Clearance above grade. The lowest portion of a sign attached to a marquee shall
not be less than seven feet, six inches above grade.
( Signs painted on a marquee. Signs can be painted on the marquee in lieu of
wall sign provided the signs do not exceed the pennitted aggregate sign area not
taken up by wall signs.
AFN Decision Process
David Chapman - December 19,2005
What is a Common Carrier or Open Network?
In a common carrier network model, the owner of the network does
not control the content of the cable. The owner provides only the connection
and charges a fee for the use of the system. In the open network modell, the
use of the network is available to multiple vendors to provide a variety of
services to the consumer over their connection. This wholesale model is
very close to what AFN Internet is providing to its customers today. AFN
TV could be considered one of these vendors. An open network should
allow the true effects of market competition. Providing the infrastructure
should reduce the cost of business entry for companies. Our system has
some limitations due to the composition of the signals. It would be hard to
have competing TV services for instance.
What is the difference between public non-profit and private networks?
The economic purpose of non-profit entities can be to benefit the
consumer as opposed to maximizing profit for the owners. This does not
mean that sound business decisions are not required. It does mean that
community goals could be considered profit. The goal of a non-profit
network might be: To provide to the city and all of its residents a connection
to the network with the most bandwidth at the least cost.
What is the Common Carrier or Open Network Option?
The AFN Options Committee reported that the common carrier option
had unexplored potential. Paul Collins (of the Committee) and I, with the aid
of staff and others, have looked at additional options. If you assume that
AFN TV can be separated from the operation of a common carrier, then
several things become clear. The management and operation of the network
alone is simplified and becomes financially viable. (I have enclosed a
spreadsheet that shows the operation in-house.) It can pay as much or more
debt service than the proposed spin-off. Therefore, this organization could
work either in the city as a service or as a spin-off.
An initial look at AFN TV as shown that this has been the financial
<,irain on AFN. We have not structured our tiers and rates to cover expenses.
I think it is possible to turn this around for the present. However, it is my
opinion that the TV service should not remain in the city due to uncertainty
in the business and a number of other factors. I do feel that it would
preferable to maintain TV as a locally owned and operated service. We must
evaluate the sale and spin-off offers in terms of public service as well as
reduction of debt.
What is the process that we should follow to make an AFN deCision?
Follow the path suggested by the AFN Options Committee with
additional considerations.
1. Have staff bring to the council offers for the sale or spin-off of AFN.
Make clear that we would like two types of offers.
a. AFN as a whole.
b. AFNTVonly.
2. Have staff determine what is required to be retained in a sale or what
arrangements must be made with the spin-off for the operation of the
city.
3. In order to evaluate offers, we need to be able to place a value on the
system to the city.
4. Determine how to handle the remaining debt.
Ashland Open Net Deptment
Revenue - Internet
Revenue - highspeed
Total Revenue
Personal Services
Salaries and Wages
Fringe Benefits
Total Personal Services
Materials and Services
Supplies
Rental, Repair, Maintainance
Communications
Contractual Services
Misc. Charges and Fees
Other Purchased Supplies
Franchises
Total Materials and Services
Operating income
Capital Outlay
Equipment
Improvements Other Than Bldgs.
Total Capital Outlay
Net cash flow
1,235,817
213,483
1,449,300
Network dir @$92K, Tech Mgr @ 70K, 3
309,300 techs @ 49K
148,464
457,764
Reviewed by Lee
121,179
54,951
3,461
15,080
Central services portion of this cut about in
142,157 half
2,741
o
339,569
651,968
100,000
20,000
Holbo said $125K 1 time would bring
120,000 hardware up to date
531,968
111m Foundation, Inc.
1250 Siskiyou Blvd.. Ashland, OR 97520 . 541-552-6301
December 20, 2005
Mr. Gino Grimaldi, City Administrator
City of Ashland
Ashland OR
Dear Gino,
The lPR Foundation wishes to express to the City, in response to the City's invitation at the
Council's November 29 Study Session, its interest in assuming responsibility for the Ashland
Fiber Network.
As you are aware the Foundation has, through its JEFFNET subsidiary, been involved as a
partner in AFN's operation since the network's inception. We step forward at this point because
we believe the Fiber Network is an important civic resource and because we believe our
experience in the not-for-profit communications world would enable us to both effectively
operate AFN and to do so in a fiscally responsible manner. Our goals, therefore, are to assure
that::
. Ownership and control over AFN remains with a not-for-profit entity
. Ownership and control over AFN remains locally vested
. The relationship of the participating local ISPs with AFN continues
. The City achieves a reliable and secure financial posture with respect to AFN.
We wish to acknowledge, and express our appreciation for, the support we have received over
the past several weeks from City staff who have been prompt and generous in providing us
information necessary for us to understand of AFN's current operations in order that we could
evaluate our own capabilities for assuming responsibility for AFN. That said, neither the City
nor we have had sufficient time in which it is possible for us to formulate a fully detailed
proposal. Assuming the City wishes to continue this discussion with us, with the goal of
developing a draft agreement,- we would mutually work to further define those areas which
require additional information/consultation in order that a fully specific proposal can be crafhed.
With respect to major elements of this expression of intent, however, we advance the following
basic components. The JPR.Foundation would:
. Assume full responsibility for the system's operation as of a mutually agreed upon date
. Annually return to the City a sum, currently estimated to exceed the $326,000 figure
postulated in the AFN Options Committee's "spin off' pro forma. This sum would be
"Fosterinl; the intellectual & creative spirit. >>
Mr. Gino Grimaldi
City of Ashland
December 20, 2005
Page 2
payable for the period of the City's bonded indebtedness for the AFN system (which we
understand to be twenty years) and would constitute our payment for the exclusive rights,
ownerships and other consideration transferred by the City to the Foundation.
. Operate the Internet portion of AFN under the current "open access" model thereby
enabling the existing ISPs on the system to continue their operations
I would note that this Letter of Intent is crafted for the purpose of expressing our intentions based
upon our current understanding of AFN' s operations. Our subsequent execution of a specific
agreement with the City would be subject to approval by the lPR Foundation Board of Directors.
SinCe~~
~.'~..
Ronal amer
utive Director
I
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On behalf of all current AFN ISPs except Unicorn (wh~ we couldn't reach):
Since AFN's inception) a founding principle articulated by the City has been that the
system would have an 'open architecture' to allow local ISPs the opportunity to
offer services completely tailored to the local community. While the ISP business
is not one with a large margin, and as a result several of the original ISPs on AFN
have ceased to exist, the majority of the ISPs have successfully brought a wide
range of distinctive services to Ashland citizens. Satisfaction with th<:: services
provided by these ISPs remains high. And it is clear that the Internet portion of
AFN's operations has been financially successful, helping to provide funds to cover
other areas of AFN's operation.
High Speed Internet usage by Ashland citizens is higher than~~v~~ge. The City's
business climate has been significantly stimulated by AFN's attraction of
businesses drawn to Ashland by the Internet services available through AFN and its
partner ISPs. Examples of such businesses include Plexis Health Cane, Treestar and
the Leela Foundation. These, and other similar businesses, bring family-wage,
environmentally-friendly jobs to the City as a result of the services provided
through AFN's partner ISPs. Additionally, the ISPs themselves collelctively add to
the creation of such employment opportunities.
Thus, both from ~ financial and operational standpoint, AFN's ISPs believe that
the current ISP operations through AFN must be judged a success.
While recognizing the overall financial challenges facing the City ovt~r AFN, we
believe the City's ultimate disposition of AFN should be made in light of the
following observations.
The 7 (originally 9) ISPs have partnered with the City to successfully establish the
Internet services offered through AFN. During the AFN Options Cornmittee study
session with the City Council on November 29, it was stated that what the City
really had to "sell" or lease was the AFN system's client base. While the City owns
the cable TV client base, that is not the case for the ISPs customers.
Mail Trihune, Sunday, May 18,2003
What Is This Thing Called
The Motley Foo'?
, Remember Shakespeare?
. Remember ';4s You Like It"?
, In Elizabethan days. Fools were the ollly
, people who could get away with telling
, the truth to the King or Queen.
: The Motley Fool tells the truth about
! investing, and hopes you'll laugh all
: the way to the bank.
~...............u.........................................................,..
Telecoms Ring With Debt
Standard & Poor's pointed ollt
recently that telecom and cable tinns
have amassed about $206 billion in
debt, roughly $20 billion of which will
come due through 2005. The strongest
players - most notably the regional
Bells - issued much of the debt and
will likely have no problem refinancing
their obligations.
Not so for the weakest
players. S&P describes the
likelihood of payment
from firms such as Qwest
Communications (NYSE:
Q) and Charter Communications (Nas-
daq: CHTR), whi~h owe mo,:e than $6
billion and $1 billIon, respectively,
maturing by 2005, as "worrisome to
highly doubtful.". '
Telecom has suflered greatly these
past several year~. Demand for products
and services val1lshed Just as firms com-
pleted extensive network upgrades
financed by massive debt. The saddest
part of this saga i~ that fraud seems to
have taken a heaVier toll on the firms
that played fairly .as they struggled t~
keep up with the phantom ,growth ot
their unscrupulous competitors. ~hose
same competitors are now emergmg
from bankruptcy debt-free.
Cheats such as World Com (now
emerging from bankruptcy) are in a
better position to compete than before.
Worse. their defaults have soured the
credit markets on the industry, makmg
it difficult for the honest firms to get
funding.
With few options, the weakest players
will scurry to renegotiate debt matUri-
ties or sell assets. More defaults and
bankruptcies are likely. Be. careful in
this suffering sector - or .Just slay away.
s -- lll-r13
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Lenny Neimark
380 Kent Street · Ashland, OR · 97520
541.482.6218
lneimark CWopendoo r.c011l
From:
Date:
Ashland City Council & Mayor
City Administrator & City Finance Director
AFN Options Committee, AFN Programming Committee,
Ashland Budget Committee
Lenny Neimark
December 18, 2005
To:
Copy:
Honorable Mayor, Esteemed Councilors, and Weary Staff:
I wanted to add my voice, observations and recommendations to the immensity
of babble you have been hearing for all too long now concerning AFN and the upcoming
choices you must make (perhaps as soon as this week) in regard to its future viability
and very existence.
First, let me state that I have been a proponent, supporter and AFN enthusiast
since it first kicked its tiny little digital feet. I served for five exciting years as an initial
member of the AFN Citizen's Programming Committee. As a private computer and
networking consultant, I have assisted and/or been responsible for scores of clients and
acquaintances using or switching to AFN internet and acquiring AFN cable TV services.
As a developer and business owner outside the city limits, I envy the availability' of AFN
quality services to residents and businesses within Ashland-services that many outside
Ashland do not have easy or reliable access to. And as a father of young twins, and an
AFN cable and internet-using resident of our fine city since day one, I value and am
deeply thankful that my city leaders had the foresight years ago to authorize, build and
provide me and my family and my neighbors with the many tangible and intangible
benefits of our Ashland Fiber Network.
That said, I am frustrated, disillusioned and even appalled that AFN has been
"allowed" to descend into the dire straights in which it now finds itself-and I choose the
word "allowed" with meticulous care, because 1) this deplorable situation was far from
unavoidable, and 2) it was caused not by circumstances but by people.
For the past several weeks now, I have listened to many in our city tell their
stories of AFN. I have asked questions of certain staff, past and present. I have read and
reread Tidings articles, letters to the editor, and other published opinions. I have
reviewed and studied AFN contracts, city minutes of various council and committee
meetings, the 2001 AFN Advisory Committee Report, the 2004 Navigant report, and the
recent AFN Options Committee Report. I perused the recent staff-generated AFN
contracting review memos and attended last week's Council study session. And frankly, I
page 1 of6
am amazed that so many people -including, seemingly, each and every one of you-
continue to ask what has gone wrong or what can we do.
This is incredibly easy. There is absolutely nothing about our AFN operations-
particularly now that we are beyond (with admitted qualification) initial build-out-that
requires the expertise of rocket scientists, much less one more body of consulting
experts after another.
Plain and simple, the single most causative problem AFN has ever had and
unfortunately continues to have, is a management problem, a people problem-the
wrong people in the wrong position at the wrong time. In a nutshell, this thing has been
mismanaged from the top. And everyone seems afraid to say it.
Quite frankly, I think at this point it is oflittle consequence or importance to try
to figure out why. I watched all of you last week, at the study session, tiptoe ever so
gently, with a politeness and feigned civility that is of no service to anyone when it is
costing our city and the people you represent not just millions of real dollars, but also
compromises the very existence of a critical service and infrastructure that other
municipalities and communities across our country are dying to acquire, a service and
infrastructure that could have, should have, and I believe still can work and provide
untold benefit to our city.
So with a respectful and cordial nod to the Peter Principal and to those who have
somehow found themselves in positions of responsibility beyond their competence or
capacity to meet, I say thanks for your time and efforts and now please get out of the
way. And since none of you-councilors, mayor, or top tier staff-seem willing to name
names, I guess it's just going to have to fall to someone from the outside. The first to go
has got to be Mr. Holbo, current AFN Operations Superintendent. He remains the one
constant who has survived the inadequacies of both Mr. Lovrovitch and Mr.
Wanderscheid, and it is the considered opinion of many I have discussed this ""ith that
Mr. Holbo has succeeded in creating a misguided almost personal empire that controls
virtually every aspect of AFN operations, from spending, contracting, technical services,
terms of service, availability of services, customer satisfaction, marketability of services,
and who also may single-handedly (though perhaps unwittingly) be responsible for a
preponderance of the negative perception that portions of our community have towards
AFN.
Not withstanding Mr. Holbo's argumentative, defensive and oftentimes
schizophrenic missives, as evidenced, for example, by his August 4, 2005 email to the
AFN Options Committee in which he claims to "take no umbrage with our ershvhile
[Tidings] reporter using my statement that includes 'reticent' and 'butt' in the same
sentence," or more recently his December 14, 2005 em ail to you (Council) with the
subject line "AFN Economics 101," wherein he fumbles to justify and excuse himself
against Mr. Ed Shull's recently public critique of AFN in general and ofMr. Holbo in
particular, how can anyone help but wonder why people throw up their hands and walk
away from AFN? For alas, this is the public face of AFN as it exists today.
page 2 of6
If anyone cares to dig deeper, I suspect you can find plenty of cause or whatever
else it is you may need to ask Mr. Holbo to step aside. The bottom line, in the opinion of
many, is that if Mr. Holbo stays involved with AFN, no matter what you decide to do
with it, whether keeping it as a city-run entity, spinning it off as a non-profit, turning it
into a common carrier, or any other hybrid whatsoever, AFN is doomed to failure. He's
got to go.
This does not excuse significant mistakes and oversights made and allowed under
the watch of both Mr. Lovrovitch and Mr. Wanderscheid, but those individuals are no
longer part of the current AFN equation, so let's not waste precious time trying to figure
out what went amuck there. As far as Mr. Tuneberg's involvement, with all due respect,
Mr. Tuneberg is not the person to be overseeing AFN at this critical time. This is simply
not his field of expertise. At the core, AFN's problems are not financial, they are
managerial. The negative numbers are symptoms. People are the cause. Which brings us
to Mr. Grimaldi.
Since I've managed to out virtually everyone else, the other obstacle that many
people see to righting the mismanagement ills that AFN has had to endure so long is
that Mr. Grimaldi-whether acting (or, as the case may be, not acting) due to caution,
loyalty to his staff, his imminent departure, or lack of time, energy or resources to dig as
deeply as perhaps he should-is no doubt not very inclined to be asking people like Mr.
Holbo to step aside. It is likely that both he and Mr. Tuneberg are simply too close to the
players and circumstances to see, much less act, boldly on the big picture. And who
could blame them? What a mess. Yet that is exactly what they must do. And what you,
the Council, must urge them to do.
On the other side of the managerial tipping point, you have Mr. Ainsworth who
has struggled with way too few resources and far too many operational obstacles to
enable anything having to do with AFN television make sense. I say this with a heavy
heart, because I believed in AFN TV and I feel personally responsible for many of the
unique and superior channels that we had chosen for our community, but the sad reality
is: AFN television has got to go, and along with it, Mr. Ainsworth becomes a casualty. I
see no way, with advancing technology requirements, upcoming FCC requirements, and
hard-core competitive realities, that AFN television can ever be viable. And with the
demise of AFN television, say goodbye to Mr. Zauskey as well, because with no AFN
television there is no need for cable TV utility billing personnel. So what does this leave
us? A handful of AFN technicians and installers with no senior managers. Is this a
problem? Not for a month or two, until an interim director can be brought on board.
Will the entire network collapse if we do this? No. I mean, what if Mr. Holbo, as the only
current operational manager of AFN, suddenly became incapacitated or otherwise
unable to perform his duties? Would the network collapse? If so, then we've got a much
bigger problem than perhaps anybody ever dreamed of. And if not, then we can and will
survive just fine until we bring in the new managerial A team.
Please understand, this is really difficult. I know and very much respect and like a
lot of these people. But that doesn't mean they should remain, or as in the case of Mr.
Holbo, be entrusted with righting the self-created wrongs that have contributed to the
failures of AFN. All the other minutiae of what to do and how to save AFN not
page 3 of6
withstanding, the one thing that absolutely has to happen if any of the other steps are
ever to succeed is a complete change of scenery when it comes to AFN management and
senior operations. If you ignore this reality, there is nothing else you or anyone can ever
do that will matter. You might as well hold your fire sale today and enjoy the bag of
popcorn you'll be able to buy from the proceeds.
Please, ask, urge or demand that Mr. Grimaldi find a new AFN Operations
Superintendent without delay. And take the bold yet easy step of hiring a qualified
interim AFN director now. Whether you sell, keep, or spin-off AFN, you will need this
person to steer the ship through the transition, no matter how long or brief that process
is. Don't worry about someone not being interested in the job because it may soon not
exist. Use that possibility as leverage to inspire and motivate an interim director to
succeed and assure his future permanent employment. There is no other way. There is
nothing that you or anyone else can do that will work if you don't take these unavoidable
steps first.
Thank you for your gracious time and consideration. Perhaps I've waited too long
to communicate to you what seems so obvious to me. But as you can see, I feel
passionately about AFN and about our city doing everything that it can to ensure AFN's
continued existence, economic viability and success. It's that important. And it's that
simple.
Respectfully,
:P"-1./~~.
,---"
I I
\/
Lenny Neimark
page 4 of6
Some additional not-so-random notes, thoughts, and suggestions about all this.
All of which are secondary to addressing the items discussed on the previous pages.
I've looked at the revenue contracts, the expense contracts, the operational
contracts. This is not hard. Running and managing AFN is not (in spite of all
appearances) a terribly complex thing. As noted in last week's study session, managing
AFN utterly pales in comparison to the complexity of running and managing a sewage
treatment plant, a dam and water treatment facility, a major road reconstruction. There
is nothing inherently wrong or broken with the basic premise or construct of AFN. Its
ills can almost entirely be attributed to a past and current absence of fundamental
managerial oversight. Most any competent, smart, straight-forward, committed person
with integrity could run AFN successfully. Yes, I think it's that simple.
Based on all my discussions with numbers of people, here's one solid scenario for
what you, our City Council, can do to both resurrect and save AFN while also ensuring a
progressive and viable state-of-the-art communications infrastructure for the citizens of
Ashland:
1) Get rid of AFN television. Sell the subscribers and equipment for as much as you
can get and be done with it.
2) Immediately dismiss all current AFN top operational management.
3) Utilize current AFN technicians along with interim citizen volunteer expertise to
keep the system up and running.
4) Hire a new interim manager.
s) Develop job descriptions and hire new permanent management.
Consider creation of a combined AFNjInformation Technology (Computer
Services) Department. (This is already loosely in place. Those two functions could
coexist nicely together.)
The new management positions could be:
a) AFN j Information Technology Director - Department Head
b) Network & Operations Director-
replaces current Operations Superintendent and oversees both AFN
Services and IT jComputer Services
c) Director of Marketing, Emerging Technologies &
Economic Development
6) Resurrect AFN Citizen's Advisory Committee for ongoing input & oversight.
7) Provide AFN access via wireless to every city resident not currently served who
wants it.
8) Review, set new standards and renegotiate all existing AFN contracts as
necessary, including revenue contracts with ISPs and competitive bids or quotes
for services from providers such as Qwest and Hunter.
9) Review and revise terms of service as necessary.
10) Enforce strict new pricing guidelines with clear cut differentiation between
residential and business users.
11) Encourage partnerships to resell or redistribute bandwidth to nearby
neighborhoods, communities and businesses in a way that ensures ongoing
revenue to the city.
page 5 of6
Perhaps the new department might look something like this:
City of Ashland
Ashland Fiber Network,. Department of Information Technology
lTl
COl'/lPUtlll'~;
Director
AFN & Information Technology
Hud
AF1J
~
IT Network Admlnla1rator
Tech Support Tam
rammers
AFN Natwork Admlnla1rator
Technicians
Install s
One last thought regarding the AFN deficit. That unfortunate reality, at this point
in time, has virtually nothing to do with how you choose to address AFN's woes. That
debt is now a unique and separate burden on the city that I believe should be
considered, coped with and addressed completely apart from whatever decisions you
make concerning AFN and its future. The debt remains no matter what. So make the
debt problem its own agenda item as you move forward in determining the fate of AFN.
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