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Home My WebLink About2008-0331 Study Session PACKET CITY OF ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, March 31,2008 at 6:00 p.m. Council Chambers, 1175 East Main Street 6:00 p.m. Study Session 1 . Look Ahead Review 2. Review of regular meeting agenda for April 1 ,2008 3. Does the Council have comments or questions to be directed towards Brown and Caldwell, the authors of the Reeder Reservoir Study? 4. Does the proposed budget meet the needs of the Mayor and Council for FY09? 5. Does the proposed Community Visioning plan from staff incorporate the steps and timing Council feels appropriate for this goal? In compliance ~A/ith the 14mericans ~Alith Disabilities ,4ct, 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). 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LI. ~ Q cu .!!! ,II) ~ .Sl o c:: C\) II) cu C\) it CITY OF ASHLAND Important: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit written comments to the Council on any item on the Agenda, unless it is the subject of a public hearing and the record is closed. Except for public hearings, there is no absolute right to orally address the Council on an agenda item. Time permitting, the Presiding Officer may allow oral testimony; however, public meetings law guarantees only public attendance, not public participation. 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, if any. The time granted will be dependent to some extent on the nature of the item under discussion, the number of people who wish to be heard, and the length of the agenda. AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL April 1 , 2008 Council Chambers 1175 E. Main Street 7:00 p.m. Regular Meeting I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENT OF BOARD AND COMMISSION VACANCIES V. SHOULD THE COUNCIL APPROVE THE MINUTES OF THESE MEETINGS? [5 minutes] 1. Study Session of March 17, 2008 2. Special Meeting of March 17,2008 3. Executive Session of March 18, 2008 4. Regular Council of March 18, 2008 VI. SPECIAL PRESENTATIONS & AWARDS 1. Mayor's Proclamation of Independent Media Week 2. Tree City USA Presentation 3. Will the Council approve the plan that Jackson County developed to comply with Senate Bill 111, which requires Counties to develop and implement a plan for investigations of law enforcement uses of deadly physical force in the line of duty? VII. CONSENT AGENDA [5 minutes) 1. Does the Council accept the Minutes of Boards, Commissions, and Committees? 2. Will Council authorize the Mayor to sign the partition plat and deed restriction in preparation for the sale of city-owned property on Westwood Street near Strawberry Lane? 3. Does the Council wish to approve the sale and subsequent transfer/assignment of rights of the Unicom customer base on the Ashland Fiber Network to Jim Teece as required by the ISP contract? 4. Should Council approve the contract for the North Main/Scenic Park development project? 5. Will Council approve a resolution in support of an ODOT Transportation Enhancement grant in the amount of $512,000 to construct sidewalks on Laurel Street? 6. Does the Council want to approve a resolution repealing and replacing Resolution 2008-05, correcting for information omitted when an attachment page was not included? 7. Does the Council wish to deny a Liquor License Application from Michael Rozenfeld dba Fresh Feast, LLC at 280 Hersey #6? COUN(]L!\;lTJ:T!NCiS ARE 13ROAD('AST LIVE: ()N ('HANNEL 9 VJSrITI!l': crry OJ: ASHLAND'S \VF;B SrrE AT W\V\V/\SHL.AND.ORUS VIII. PUBLIC HEARINGS (Testimony limited to 5 minutes per speaker, unless it is the subject of a 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}) 1. Should the Council award a portion of the 2008 Community Development Block Grant (CDBG) Funds to the Fair Housing Council of Oregon, and direct staff to develop the 2008 Annual CDBG Action Plan to identify proposed used for CDBG funds? 2. Will the Council authorize the increase of fees for the Ashland Community Center, Pioneer Hall, and The Grove facilities to recover 50% of operational and maintenance expenses? 3. Does the Council wish to authorize a 9% rate increase for residential, commercial and medical waste services by Ashland Sanitary and Recycling? IX. 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 on the number of individuals wishing to speak.) [15 minutes maximum] X. UNFINISHED BUSINESS None. XI. NEW AND MISCELLANEOUS BUSINESS 1. Does the Council have any feedback for staff about the proposed selection/interview process for the Public Works Director? XII. ORDINANCES. RESOLUTIONS AND CONTRACTS 1. Does the Council wish to approve second reading of a proposed Ordinance titled, "An Ordinance amending the Ashland Municipal Code, Chapter 2.12, City Planning Commission"? 2. Should the Council approve Second Reading of an Ordinance adopting ALUO Amendments, including reading a new Section 112 "Delayed Effective Date" in full? 3. Should the City Council declare and emergency and unanimously adopt three ordinances titled, "An Ordinance relating to nuisances, amending code section 9.08.180 concerning distribution of written materials declaring an emergency", "An Ordinance relating to solicitation, requiring no trespassing signs, limiting solicitation hours, and repealing code chapter 6.24 concerning peddlers, and declaring and emergency", and "An Ordinance relating to public parks, repealing Code Sections 10.68.050, 10.68.070 and 10.68.160 and declaring and emergency"? XIII. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS XIV. 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). COl INeIL 1\lI:LTlNGS ARE BROADC';\ST LIVE: ON ('HANNEE <) VISrrrIH: ('ITY ()F !\SllLAND'S WFB SlrT:: AT \VW\V/\SHLAND()HIJS CITY OF ASHLAND Council Communication Study Session - Reeder Reservoir Study Meeting Date: Department: Secondary Dept.: Approval: March 31, 2008 Public Works/Engineering Finance Martha Bennett Primary Staff Contact: E-Mail: Secondary Contact: Estimated Time: Jim Olson, 552-2412 olsoni@ashland.or.us Pieter Smeenk, 552-2413 15 Minutes Question: Does the Council have comments or questions about the Reeder Reservoir Study? Staff Recommendation: The purpose of this presentation is to explain the plan of action for the next 5 years for Reeder Reservoir as it pertains to water quality and the water treatment plant (WTP) operation. Council's feedback is sought and would be much appreciated. Bob Willis, the lead engineer for the study, will present a brief overview of the study. Mr. Willis has extensive experience with management of the Bull Run Reservoir for the City of Portland. Before coming to Brown and Caldwell, he served as Chief Engineer for the Portland Water Bureau and has seen issues arise similar to those Reeder Reservoir is currently experiencing. Background: At the February 5,2008 meeting, Council approved an amendment to the WTP Process Improvement contract with Brown and Caldwell, Inc for $73,000 to implement the current year portion of the Capital Improvements Project List for WTP Upgrades and the Reeder Reservoir Study. Brown & Caldwell has estimated capital costs to the end of2013 for the remaining improvements. The entire study has been placed on the City's web site and can be found at: htto:/ /www.ashland.or.us/Files/08-04%20Final%20Reeder%20Reservoir%20Studv%20pI us%20a oodxs. pdf A major goal of the study was to identify actions to improve source water quality specifically relating to algae in the reservoir. Another was to verify the existing condition of the intake structures on the dam and the sediment surrounding them. The study included underwater inspections by American Diving out of Portland, a bathometric sonar survey of the reservoir bottom by MaxDepth Aquatics out of Bend, and sampling of bottom sediments and water quality at various depths by Aquatic Ecosystem Sciences of Ashland. Detailed reports from each sub-specialty consultant are included as appendices of the report. Based on these investigations, Brown and Caldwell recommended and prioritized improvements. They also provided an estimated cost for implementing each recommendation. The diving inspection did not uncover serious concerns on the dam itself. The metal appurtenances were in remarkably good condition. Sediment levels behind the center of the dam are at or over 10 feet deep and completely cover the trash racks of the dam's two sluice valves. The 10-foot-thick sediment extends out from the dam at least 20 feet at its center. Other observations include: H:\ShipletD\Council\Council Communication\2008\March 3\ and April 1\033\ 08 Reeder Reservoir Study.CC.doc Page I of 4 rj.' 1. The sediment near the dam was mostly sand with some silt and woody material including larger logs. A cloudy layer just above the bottom was believed to be dead algae and other small aquatic organisms in suspension. 2. Gas bubbles were observed emanating from the sediments. 3. The divers looked for the "constructed hinge" expansion joint/crack shown in the original dam drawings, but were unable to see it. As expected, they found minor horizontal cracking, which were visible in the video. The video has been forwarded to the Independent FERC Part 12 consultant for use in preparing the upcoming Part 12 Inspection in May of2008. 4. The silt layer extended up to the bottom flange of the lowest dam outlet valve. The middle outlet valve was slightly blocked open by woody debris. All the outlet valve seats were cleaned, and the debris was removed from the middle valve by the divers. During the summer and fall of 2007, the reservoir experienced heavy algae growth. The algae imparted sufficient taste and odor to the treated drinking water and generated numerous customer water quality complaints. This occurred while the water quality testing was underway, and the City also tested for the toxicity of the algae. These tests verified that the algae were not producing toxins. The Oregon Health Division was made aware oftest results, and indicated support for both the approach taken and the monitoring proposed in the study. Finally, the bathymetric survey of the reservoir bottom revealed several trends in erosion, including some not previously included in the 1987 USFS survey. Erosion on the steepest side slopes of the reservoir appears to be a significant source of sediment deposits in the trough of the reservoir. The 1987 survey did not contain enough data to estimate sedimentation rates, but new bathymetric survey technology will make it possible to know exactly where erosion is occurring after the next bathymetric survey has been completed. We will then be able to pinpoint the sources and maintain reservoir capacity more efficiently. Brown and Caldwell has recommended the following improvements: 1. Use the East and West Fork Diversions: In periods when algae limits water quality in the main reservoir, the study recommends that the City obtain its drinking water from the forks instead of the reservoir. 2. Circulate The Reservoir Water: a) The use of SolarBee@ circulators is expected to significantly reduce algae growth. b) The impact on other plankton will be tracked and tested. c) Operation and maintenance costs will also be tracked and documented. 3. Track Reservoir Nutrient Changes: This monitoring is proposed monthly from May to November to adjust the circulators' operation to maximize their effectiveness. 4. Reservoir Water Quality Sampling Station: The establishment of a sampling station is proposed for use in tracking circulator effectiveness and to optimize dam outlet depth selection as conditions change. 5. Inlet Stream Monitoring: A minimum of 20 samples are needed from each fork to be able to determine seasonal variability and to compare the influence of the steams and surrounding H:\ShipletD\Council\Council Communication\2008\March 31 and April 1\033108 Reeder Reservoir Study.CC.doc Page 2 of 4 rA' direct tributary drainages. This information will be an important part of the FERC, USFS, and EP A permit processes. 6. Sediment Removal From Behind Inlet Stream Dams: This recommendation involves significant permitting initially and will likely be continued beyond the 5 year horizon. 7. Bi- Weekly Algae Monitoring: This will also be an ongoing effort aimed at being prepared to adjust treatment process based on conditions developing in the reservoir. The work is proposed to be contracted initially in the first year but accomplished by City Staff after training is complete. 8. Reeder Reservoir Sediment Monitoring: More survey data is required to accurately estimate the sedimentation rate. 9. Storm Sediment Loading Monitoring: See 8 above. Budgeting for storms is problematic. 10. Study How Best To Remove Sediment From Behind Hosler Dam: The question of how much to remove and when in what way is complex and depends on the results of several of the above tasks. The timing of this study may be flexible and may best be delayed until major storm sediment loading can be refined. 1. Use East & West Fork diversions 2. Reservoir circulation improvements 3. Track reservoir nutrient changes 4. Reservoir water quality sampling station 5. Inlet stream monitoring 6. Sediment removal from behind inlet stream dams 7. Bi-weekly algae monitoring 8. Reeder reservoir sediment monitoring 9. Storm sediment loading monitoring 10. Feasibility study on how to remove sediment from behind Hosler Dam Total cost 41,000 29,000 97,000 6,000 24,000 16,000 3,500 16,500 30,000 45,000 50,000 40,000 15,000 20,000 12,000 12,000 12,000 7,000 $21,500 after a major storm 25,000 35,000 251,500 81,500 62,000 19,000 52,000 Current Status: The mechanical circulators are scheduled to be installed during the first week of May 2008. Engineering and Water Quality City crews will initially track nutrient changes together with the circulator supplier in the first several months. Next Steps: Pending approval of the budget for the remaining improvements by the Budget Committee and Council, Engineering plans to initiate approved measures on July 1 st 2008. Related City Policies: Capital Improvements Plan and FY 2008-09 Budget H:\ShipletD\Council\Council Communication\2008\March 31 and April 1 \033108 Reeder Reservoir Study.CC.doc Page 3 of 4 ~~, Council Options: Council's comments and concerns with regard to the expectations are encouraged and appreciated, as well as any support Councilors might lend to these proposals during budget discussions. Potential Motions: No motions are presented at this study session. Attachments: Photos of Reeder Reservoir: H:\ShipletD\Council\Council Communication\2008\March 31 and April 1 \033108 Reeder Reservoir Study.CC.doc Page 4 of 4 r., Reeder Reservoir Photos Reeder Reservoir Prior to Installation of Spillway Gates (High Pool) As Seen From the Left Abutment of Hosler Dam Facing South (Low Pool) Page 1 of2 033108 Reeder Reservoir Study.atch l.doc Looking North toward Right Abutment of Hosler Dam (Low Pool) Page 2 of2 033108 Reeder Reservoir Study.atch l.doc CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dept.: Approval: Study Session on Mayor and Council FY09 Budget March 31, 2008 Primary Staff Contact: Ann Seltzer Administration E-Mail: ann@ashland.or.us Secondary Contact: Estimated Time: 30 minutes Question: Does the proposed budget meet the needs of the Mayor and Council for FY09? Staff Recommendation: Staff recommends Council review the proposed budget and identifies areas of concern and/or questions. Background: The proposed FY09 budget for Mayor and Council is $147,035. The proposed budget is based on actuals from FY07 and projected year end estimates for FY08. Personal Services: The FY08 budget provided for full family medical benefits for the Mayor and each Councilor. The FY09 budget provides for actual medical benefits for those three councilor members not up for re-election in November 2008 and provides for full family medical benefits for the four positions open for election. Material and Services The FY09 proposed budget is slightly less than the actual expenses for materials and services in FY07. In FY08 council requested an increase for travel and training which was approved during the budget process. Council has not used the increased budget for travel and training during this fiscal year as they had intended. Currently the FY08 year end estimate for travel and training is less than the actual amount used by council for travel and training in FY07. The Mayor and Council budget will be presented to the full Budget Committee on April 28 as a part of the overall administrative budget including Mayor and Council, Administration, Legal and Human Resources. Related City Policies: Annual Budget Process Council Options: . Council should identify areas of concern and/or questions with the proposed FY09 budget. Potential Motions: . None, this item is for study session review. Attachments: . Proposed FY09 budget Page I of2 033108 Mayor and Council budget.CC.doc rA' 2 z 0 2 G g m S S S ' 8 G 8 m � @ A � k k Cd L6 C4 � v � K 2 « w d 2 LU 2 = C 0 0 0 '0 o 0 0 o m o , o CD (D to ° U G S A g 7 E S R 7 LU a) U) ^ k to m Q ^ c 2 z 0 >- w B � @ « C) 0 0 0 0 0 , r o W © CD o c m U r- o = o co ®Cli 2 c7C 1 m7 7M — § Ln to co E � _ 409. 2 / / / k f ' 7 2 7 t ^ k $ + g 2 « — 04 _ ® / \ / t/ / �/ 04 g a E Cl) k � _ k _ $ - $ � / 70 / 2 ƒ \ _0 & m _ 0 2 - f k \ / / f f _ M � g \ m / . o E k \ ƒ 2 G CL (D f b / c 2 2 E E — o & E a % 2 m 3 / I 2 CO 0 0 / 0 0 / . � 7 � § ° R M 7 g G g S ± 0 J a 7 r ■ m m » o = o CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dept.: Approval: Study Session on Council Goal for Community Visioning March 31, 2008 Primary Staff Contact: Ann Seltzer Administration E-Mail: ann@ashland.or.us Secondary Contact: Martha Bennett Estimated Time: 45 minutes Martha Bennett Question: Does the proposed plan from staff incorporate the steps and timing Council feels appropriate for this goal? Staff Recommendation: Staff recommends Council consider the attached draft visioning plan to determine if it captures Council's expectations. Staff recommends combining the Visioning and Economic Development goals into one process and is prepared to discuss this during the study session. Background: The City Council adopted Community Visioning as a priority goal as part of their 2007 Council Goal setting. On June 10, 1990 the Citizen Planning Advisory Committee (CPAC) sponsored a daylong event called Ashland Future Plan Festival. The event was an integral part of the CP AC five year review of the Ashland Comprehensive Plan. The Ashland Future Plan Festival final report is attached. Based on preliminary research of community visioning in other Oregon communities, staff has developed the attached Draft plan which includes desired outcomes, implementation steps, timeline, staff needs and anticipated costs. The purpose of this study session agenda item is for council to discuss the goal, review the Draft Plan prepared by staff and determine if staff clearly understands the council's intention as it relates to visioning. Last September, staff advised the council to move forward with the Economic Development Strategy and not wait until the visioning effort was implemented. Staff also acknowledged that conducting both processes separately could lead to citizen confusion and duplication particularly since economic development is a component of visioning. When Council discussed the economic development goal last September, Council gave staff general direction that it wished to consider the possibility of using the general-purpose revenues that would be generated if the transient occupancy tax were to be increased. Because of Council's direction to look at TOT first, no significant work has been done on the economic development goal. In developing the work plan and project scope for the visioning goal, staff found as we did last September, that much of the initial process for both the visioning project and the economic development strategy are the same. At this time staff is recommending council combine the first phases of these two goals into one process. Both goals require significant citizen input and share many of the same stakeholders. As the projects move into development of specific action plans and implementation strategies (which staff Page 1 of2 033108 Community Visioning Goal.CC.doc rA' CITY OF ASHLAND strongly recommends), the economic development goal will likely need to be separated from the other parts of the visioning project. There is also likely specific data and resources that will be needed for the economic development strategy. The attached draft Community Visioning Plan outlines the process and the staff and funding requirements. Related City Policies: Council Goal: Develop an Economic Development Strategy Council Options: . Council should identify any areas of concern they have with the draft Community Visioning Plan. . Council should determine if combining the two goals will meet their expectations. . Council should identify any specific issues or constraints that will apply to economic development and not to visioning. Potential Motions: . None. This item is for study session discussion. Attachments: . Draft Visioning Plan . Ashland Future Plan Festival final report . Council Communication re: Economic Development Strategy September 2007 Page 2 of2 033108 Community Visioning GoaJ.CC.doc r., DRAFT Plan for Community Visioning March 31, 2008 What is Community Visioning? Visioning is a planning process whereby members of a community come together to develop a shared vision for the future of their community. Visioning allows citizens to come together to discuss significant trends and issues affecting the community in a collaborative, proactive way. By focusing on the future, community members can often find common ground for shared goals. Working "backwards" from these goals, citizens can develop new ideas and approaches for addressing current challenges and solving existing problems. Visioning does not replace traditional forms of planning and decision- making, but it can make these activities better informed, more strategic and effective. A vision is the community's preferred destination - where it would like to be in the long- term future. A vision action plan evolves from the vision process and is the strategic guide to achieve the identified vision. The vision and the vision action plan are used to foster a shared sense of direction for the community to guide local government planning and decision-making, to inspire and motivate community involvement and action, to engage community partners and major community institutions. The success of a visioning process is directly related to the level of support from local leaders and has clearly defined objectives and outcomes. It should be designed to addresses community needs and resources and provide strong community awareness and participation. If combined with the economic development goal: An economic development strategy for a community should be a vision for the community to mobilize leadership to create and maintain good jobs at good wages, cultivate a culture based on entrepreneurship an innovation and responds to the values of the community. An economic development strategy is meant to provide the principles of what the city is working toward, and to develop a coordinated response to how that might occur. Both goals require significant public involvement and coordination and share many of the same stakeholders. Combining the two goals is cost effective and eliminates the potential for citizen confusion that might occur ifboth goals were being conducted separately and at the same time. What themes are usually covered during community visioning? Generally, a steering committee composed of a diverse mix of community members identifies visioning focus themes. Often those themes include: education, growth 1 management, parks/recreation, natural environment, arts and culture, economic development, transportation, neighborhoods, economic and social diversity etc. If combined with the economic development goal: If council decides to combine the two goals, economic development would be a primary focus theme within the visioning process. What maior tasks must occur for a successful visioning process? What is the time line for the process? 1) Data collection. The community needs to understand "where we are" before moving forward. The "where we are" serves as a benchmark for the visioning theme discussions listed above. Much of this data already exists in various departments and agencies but must be pulled together into a comprehensive package for review. Summer 2008 - Fall 2008 If combined with the economic development goal: Begin review of existing economic development programs within the city, region and state. The review would include the City, Chamber, SOREDI, State of Oregon, SOU and others. 2) Create a Steering Committee A steering committee should be created to guide the process and to serve as the process leaders. The committee should be a diverse mix of community members and likely a diverse range of ages from young working adults to seniors. It should include representatives from underserved segments of the community, representatives from the small business community, and representatives from the large employers (SOU, Hospital, School District, City, OSF) and others representatives as they are identified. Ideally the committee should be between 11 and 15 people plus staff support. Often, a smaller committee or task force of different citizens is formed for each of the focus themes and often emerges as a result of their participation and interest in a particular area. These smaller committees serve as the lead in developing and often sustaining the action plan. Fall 2008 If combined with the economic development goal: IdentifY potential members to act as the lead for the economic development component of visioning. 3) Consultant The breadth and scope of a successful visioning process will likely require an outside consultant. An RFP should be developed and a consultant hired early in the process. Fall 2008 If combined with the economic development goal: Develop the RFP with emphasis on experience with visioning and economic development. Require consultant to produce two final action plans: one for visioning and one for economic development. 2 4) Develop and Implement Public Involvement The public involvement process is the most critical component of visioning. The final vision statement and action plan will be directly related to input received during the public process. It must be a well organized and comprehensive process to ensure community members have multiple opportunities for their voices to be heard. This step is time and labor intensive and should probably occur over several months. Winter 2008 - Fall 2009 If combined with the economic development goal: No additional steps are needed. 5) Results of Public Involvement The consultant will record and compile public input. This information will be the springboard to develop a vision statement reflective of the community and to develop action strategies and an implementation plan. Fall 2009 - Winter 2010 If combined with the economic development goal: Separate the results of pubic input regarding economic development from overall visioning to develop the economic development action plan. 6) Vision Statement, Actions. Strategies and Timeline for Implementation. This final step is the culmination of the visioning process and the most important element will be the Vision Action Plan. The plan lists the appropriate actions required to accomplish each of the focus areas or themes covered during the process. This plan is a dynamic document and can change as community circumstances change, but remains true to achieving the vision as identified during the process. Spring 2010 If combined with economic development goal: Develop economic development action plan. What are the desired outcomes of a visioning process? The desired outcome of a visioning process includes a realistic and implemental strategy and action plan. The plan includes the goals identified during public involvement, the strategies to accomplish the goals, the action to be taken, the designated lead, potential partners and a timeline for completion. Another desired outcome is heightened community awareness, public participation, the development of strategic partners. The desired outcomes are usually articulated by the steering committee and serve as a touchstone throughout the process. If combined with the economic development goal: A realistic implementation strategy that can be monitored and flexible and responsive to changing circumstances. What are the staffing needs? 3 This effort will require considerable coordinating by staff; data collection, support for the steering committee, assistance with public involvement and more. Available staff for this project does not currently exist. Staff intends to apply to the University of Oregon RARE Program (resource assistance for rural environments). The program provides graduate students with the opportunity to get hands on experience working with local jurisdictions while gaining community building and leadership skills. The program begins in October and lasts eleven months (1, 700 hours) and provides each student with a stipend of $17,000. The community must agree to match that amount. The project will also require an outside consultant to work with the steering committee and staff, conduct the public involvement process, record and compile collected data and to draft the final vision statement and action plan. Implementing the visioning goal as a stand alone project does not provide for staff beyond the first year making it difficult to monitor, track and implement the vision action plan with available staff. If combined with the economic development goal: Develop a job description for a new staffposition andfill the position by the beginning of FYIO. This ensures the new staff person is on board during the later portion of public involvement. This person would be responsible for monitoring, tracking and implementing both the economic development action plan and the visioning action plan. Budget Considerations Preliminary analysis of potential funds generated from a 2% TOT increase indicates approximately $135,000 per year would be available for non-tourism use based on current revenue stream of$1.575 million with the current TOT rate of7%. However, that amount could vary 5% in either direction. We don't yet know the impact, if any, the loss of thirty rooms at the Windmill Inn might have on the revenue and we don't know the impact the current economy might have on room occupancy rates. Using the figure of$135,000 per year for two years provides a total budget of$270,000. Staff has submitted an Ad Package (attached) to be included in the Budget Committee packet to address both Admin-related council goals: Economic Development and Visioning. Staffhas included two memos within the Ad Package: 1) combine economic development with visioning implementation, 2) stand alone economic development implementation. Staff did no submit an add package for a stand alone visioning process. Staff is assuming the TOT funds would be divided allocating half to visioning and half to economic development. This provides approximately $135,000 or $68,000 per year for visioning. Staff does not feel this amount is sufficient to implement the goal. If combined with the economic development goal: Add the $80,000 previously designatedfor economic development to the $270,000 TOTfundsfor a total of $350, 000. 4 Option 1 This option applies if Council approves a 2% TOT increase and prefers that each the two goals, visioning and economic development be conducted separately. It allows for an intern position to assist with administrative duties associated with the project, two separate consultants, and a senior staff position in the second year to assist in the development of the economic development action plan and to implement the plan. It does not provide for staff to implement the visioning action plan. Staff for Visioning Economic Development ConsultantlPublic Involvement $17,000 Year 1 $51,000 Year 1 $68,000 Year 2 $0 Year 2 $62,000 Year 1 $62,000 Year 2 RARE student Visioning ConsultantlPublic Involvement Economic and Development Staff to be hired mid-year in year 2 (salary and benefits) TOTAL: $90,000 Year 2 $350,000 Pros: . Two different consultants with specific experience related to each goal . Intern for year 1 . Other Cons: . Does not provide staff to implement the vision action plan . Two consultants to manage will require more staff time . Consultants may not understand issues unique to Ashland . Other Option 2 This option applies if Council approves a 2% TOT increase and combines the economic development process with the visioning process using a consultant. This option provides for an intern position to assist with administrative duties, a single consultant with experience both in visioning and economic development, a permanent staff person for the second half of the first year so she can be on board early in the public involvement process and the same staff person full time in year 2 to work with the consultant to develop the action plans. RARE student $17,000 Year 1 ConsultantlPublic Involvement $120,000 Years 1 and 2 Permanent Staff Position to be hired mid year in year 1 TOTAL: $45,000 (salary and benefits) $90,000 (salary and benefits) Year 2 $272,000 5 Balance for other city use: $39,000 per year for two years ($78,000) Pros: . One public involvement process . One consultant covering both goals . Surplus funds for other city uses . Intern and half year FTE in year 1 Cons: . Permanent staff will be responsible for implementing both visioning and economic development action items . Consultant may not understand issues unique to Ashland . Other Option 3 This option applies if council approves a 2% increase and prefers the goals be conducted jointly and internally. This option allows for an intern in year 1 and would require permanent staff in years 1 and 2 with greater expertise and experience than staff in the previous options, funds for the public involvement process based on twelve meetings at $2000 per meeting (space rental, facilitators, refreshments) and funds for marketing (graphic design, printed materials, advertising, mailings etc.). Public Involvement Marketing TOTAL: $17,000 Year 1 $102,000 Year 1 (salary and benefits) $102,000 Year 2 (salary and benefits) $25,000 (12 months) $20,000 (24 months) $266,000 RARE student Permanent Staff Balance for other city use: $42, 000 per year for two years ($84,000) Pros: . Permanent staff for both years plus an intern position . Permanent staff may have a better understanding of issues unique to Ashland . 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U ~r::2 ~ (/) <c ;::J ~'2 0 Z8~cd~~ Z >. '"-' ~ ~ +-> 0.... ~....... r:: E= 0 ~ ---0 ~ (f)'"-':a"O,-,,~ ~]qg~~ -'~<1::>o"'" v ... .- V) <t:~oU2 D-. ......~ :> .- v ::J cd.-. 0 cd .- ~o...UVi::r:> 0::: ~ CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dept.: Approval: Economic Development Strategy September 17, 2007 Primary Staff Contact: Commu 'ty Development E-Mail: Ad .f, inance Secondary Contact: Estimated Time: Statement: This is discussion with Council to review options and strategies to development an Economic Development Strategy for the city. David Stalheim stalheid((l'ash land.or. us Lee Tuneberg 60 minutes Staff Recommendation: Staff requests that the Council provide direction on options as identified below. Background: In June, the Council met with the Ashland Chamber of Commerce Board to review issues of mutual interest between the two groups. The Ashland Chamber Board provides services to the city, including the city's economic development agency. During this discussion, the concept of moving forward with an Economic Development Strategy was discussed. Both the Chamber and the City agreed to move forward in a cooperative manner to develop such a strategy. What is an Economic Development Strategy? An economic development strategy for a community should be a vision for the community to mobilize leadership to create and maintain good jobs at good wages, cultivate a culture based on entrepreneurship and innovation and responds to the values of the community. The citizens and businesses of Ashland place great pride in their community. Community values, such as conservation, creativity and innovation should be reflective of the strategies and businesses that the community desires in their economic efforts. An economic development strategy is meant to provide the principles of what the city is working toward, and developing a coordinated response to how that might occur. By organizing and targeting efforts, the community can better utilize scarce resources, build on strengths, and put outside resources to work more effectively. Three major themcs emerged during the rccent public process for review of the Economic Opportunities Analysis (EOA) as foremost elements ofa vision for Ashland's future economy. These themes can serve as a springboard for discussion of the Economic Development Strategy, but more work and input is needed to verify these themes as the backbone of a strategy. · Prnermtioll and enhancemel1t offhe lfllali(1' (~f/~/e . CreaTion ofa dh-erse allti sustaiuable ecof[olllY . Improved coordination & proces\l!s ofcil';C allii gm>el'1111tel1t sectors PJ~, I uf6 CC. Ecun Dey Strategy l) I] OJ \'2 .doc r~' CITY OF ASHLAND What are some of the major tasks that need to be accomplished in forming an Economic Development Strategy? 1. Review Existing Programs. One of the first tasks would be to review existing economic development programs within the city, region and state. The city needs to understand what has already been accomplished, what various groups and agencies are doing, and how well it is working. This review would include the city, Chamber, SOREDI, State of Oregon, SOU, and others. 2. Develop Strategy. This would be the heart of the effort and would have to include extensive public involvement. In order to be an effective project, it is important that the strategy not only identify what is going to be done, but who will be making sure it gets done and any resources necessary to carry out the strategy. 3. Implement Strategy. The effort should not end with a document that sits on a shelf. The strategies are ongoing programs and efforts. As such, it is important that some sort of implementation and monitoring effort be put in place to ensure success. This monitoring effort will also enable the city to be flexible and responsive to changing circumstances. Where do we go from here? If the concept of an Economic Development Strategy makes sense for the city to accomplish, the City, working in concert with the Chamber and others, should develop a work plan to accomplish this effort. Public involvement and cooperation of various stakeholders is critical to the success of an Economic Development Strategy. As such, one of the first tasks is to decide on the framework for working together. The following is a conceptual task list and discussion points for the council to consider. 1. Determine timin2. of effort in con junction "".ith other city efforts. Consideration should be given to how this effort is coordinated with the City Visioning effort, another city council goal. Both of these city council goals (visioning and economic development) require significant public participation and need to be coordinated efforts. There is little doubt that a city visioning process would include an economic development component. An Economic Development Strategy, however, would entail more detail than a Visioning effort, and could be incorporated into the Visioning process. Questions and Options to Council: 1. Should the Economic Development Strategy be coordinated with the City Visioning proj ect? 2. Can the Economic Development Strategy occur on a parallel track, or proceed in front of the City Visioning project? Or, should the Economic Development Strategy follow the City Visioning project? 3. Depending on the answers above, how soon does the council want to initiate this effort and when do you expect an outcome? Staff Recommendation: Staff recommends that the City move ahcad with the Economic Development Strategy immediately, and strive to minimize duplication or confusion with the P~lgC 2 of () cc - E~_on_ Dc" Stralcg>' 9 17 07 v2_.~oc ~~, CITY OF ASHLAND Visioning effort. There are multiple issues that affect the City right now related to economic development, and this project has been a Council goal for several years. If Council agrees with this rccommcndation, we will strive to maximize coordination and to avoid citizen confusion between these two projects. 2. Create an Economic Development Task Force. Since the city does not have a standing committee that reviews and adopts economic development policies and strategies, a broad-based task force representing diverse interests would provide the balanced review and input necessary for a successful economic development strategy. Having the diverse interests will also foster a spirit of cooperation amongst parties. The Task Force could be charged with: · Gather public and business input regarding economic development strategies for Ashland · Draft and propose an Economic Development Strategy for the city of Ashland · Develop an interim and long-term implementation strategy, including consideration for staffing, contracts and other recommendations Ouestions and Options to Council: 1. Do you agree that an Economic Development Task Force should be formed? 2. If a Task Force is warranted, how many people should be on the task force and who should be included? . The ideal number of people on a Task Force is less than 15 people, and many recommend no more than 9 to 13 people. 3. Who are the stakeholders that should be included on a Task Force? . Public agency members that might be included on the Task Force include the city of Ashland, Southern Oregon University, Ashland School District, Small Business Development Center and Rogue Community College. Total public agency members: 5 . Non-profit agency members that might be included are the Ashland Chamber of Commerce, SOREDI and Thrive. Total non-profit agency members: 3 . Citizen members should round out the balance of membership. A good cross section of the community should be sought, including business representatives, youth and retired persons. Total citizen members: 3 - 7. 4. Who should appoint the Task Force? 5. Who should the City representative be? 6. Who should the Task Force report to? . Presumably, the Economic Developmcnt Strategy is adopted by the City Council. . In order to be an effective strategy. it will require the participation of many partners. A good process would include adoption of the strategy by all stakeholders to the process, or at least those that have an action role in the proposed strategy. Staff Recommendation: . A 12 to 15 member Task Force, wlth members who represent the follo\ving institutions and interests: P"se _, of () CC - Eeon Dc, Strategy <J 17 _~)L\2doc ~~, CITY OF ASHLAND o City of Ashland, Southem Oregon University, Ashland School District, Small Business Development Center and Rogue Community College o Ashland Chamber of Commerce, SOREDI and Thrive o Five Citizens appointed by the city, with recommendations sought from the Chamber o Agency and non-profit representatives and altemates must be agreed to by city . City representative - Mayor . Task Force reports regularly to the City Council . All agencies and groups with an implementation task identified in the Economic Development Strategy would be required to support their part in the plan prior to City Counci I action on adoption of the strategy 3. Determine starting needs. This effort will entail considerable effort to coordinate, as well as prepare materials for Task Force and public review. One of the considerations before the Council is the interest in moving forward with this initiative soon. There currently is not sufficient capacity with existing staff in the city to undertake this effort without additional assistance. There are two options for staffing this work that could be explored. Consultant and Staff: A consultant would be sought to research, facilitate and write the Economic Development Strategy. However, it would neither be efficient or practical to have a consultant coordinate public meetings, notices, task force contacts, etc. Thus, it would be beneficial to have a part-time staff member assigned to the consultant. The city could recruit a part-time staff person, perhaps an intem, to do this work. The benefits and cons of this approach include: . Pros: o Consultant brings larger breadth of experience to the effort o Part-time staff helps reduce overall costs and ensures project keeps moving along; depending on staff experience, might bring research or other skills to the position o Consultant might be more objective and less emotionally involved with outcomes . Cons: o A consultant does not understand issues unique to Ashland o A consultant led report often fails in implementation due to various reasons, including unfamiliarity with specifics, lack of knowledge and participation in the process Staff (new): A new staff position could be created to lead this effort. The position would likely be assigned to City Administration and could also work on other projects assigned by the City Administrator. . Pros: o Creates city leadership and presence on economic development issues o Position could assist City Administration in bridging departmental issues when needed, such as building, planning, public works, fire and electric o Creates in-house expertise that allO\\is for implementation of strategies . Cons: P,,~c -+ of (, CC - Econ De" Strategy <) 17 07 ,,2 .doc .... ._~ CITY OF ASHLAND o On-going budget commitment for city o Time to recruit and hire could delay start of project o Experience might be limited compared to consultant(s) Staff Recommendation: A blend of the above could occur. The city could start out with the consultant and part-time staff approach. Dunng the strategy writing, the city could begin recruitment of a new position. This would enable the staff person to be involved with development of the strategy, which will help in implementation. Budget Considerations The estimated cost for this work is $150,000 using either the consultant/staff approach, or a full time staff member. Depending on the timing for the total process it is likely to extend into fiscal year 2008- 2009. No other appropriation is specifically identified in the current budget for this work or staffing. Revenue sources that could be considered in this year or next are identified below: . Property taxes . Transient Occupancy Tax revenues (TOT) . Other charges, fees or approaches Property Taxes - The FY 2007-2008 budget includes an additional portion of the permanent property tax base for the $80,000 Master Planning project in Community Development. The approved tax rate for this project is $0.045. Renewing that property tax rate in the following year would eventually generate enough proceeds to fund the cost estimate for this project over the two fiscal years. TOT - The City has routinely reiterated the importance of economic development in the Transient Occupancy Tax proceeds annul granting. It is based upon the Resolution 2007-08 which identifies $ goes to grants and $ remains as a General Fund revenue. This revenue amount is based upon a 7% TOT tax rate. There has been considerable discussion on the benefit of raising the tax to generate monies for other activities and the State limitation is that 70% of the new proceeds would go toward tourism. The City received approximately $1.56 million in FY 2006-2007 from this tax. An additional 1 % tax could generate $223,000. Of that additional revenue, $156,000 would have to go to Tourism per the State's definition and 567,000 could be used for other purposes. Combining the one year tax rate of $0.045 and one year of an added 1 % TOT would nearly meet the estimated cost of this project. Other charges, fees, etc. - Without doing one or both of the two tax approaches above, the City would need to identify new fees or charges to fund this program or consider cuts to other programs in the General Fund. In doing so it would either require justifying the increased charge for this effort or the higher priority or greater importance of this effort over other projects or ongoing services in the General Fund. The General Fund and community \vill benefit from this project hut the recent hudget process demonstrated the difficulty the City will have with this funding approach. Pa~e'of(' CC - Econ De, Strategy <) 17 07 \2 .doc r~' CITY OF ASHLAND Since only $80,000 in appropriation for this project have been identified, any costs beyond that amount prior to June 30, 2007, will require adjustment to the budget or priorities of work to be done. Staffhas indicated that there is not enough internal-staff time available to support the project. After identifying the desired timing and the resources to fund the work, a supplemental budget could be constructed to recognize additional revenue to fund a consultant and part time position or full time staff member to work on this and other tasks assigned by the City Administrator. Budget Committee support for FY 2008-2009 would be necessary to fund the completion of the project (in general, or specifically, if renewing the SO.045 property tax rate) and maintaining any staff added. Related City Policies: City Council goal: "Develop a City-led Comprehensive Economic Development Strategy with an Emphasis on Local Economy, Diverse Population. Risks of Over-Reliance on Single-Industry, and Living Wage." City Council goal: "Complete a City-wide Visioning Plan." City Council goal: "Complete Downtown Planning Process." Council Options: See Discussion above Potential Motions: a. Direct staff to solicit members for Economic Development Task Force and: b. Solicit proposals from consultants to prepare an Economic Development Strategy, c. Prepare a job description for staff assistance, begin recruitment and fill position. d. Direct staff to develop a clear timeline for development and implementation of the strategy, with the goal to start as soon as possible. e. Direct staff to return to Council with any necessary budget adjustments to accomplish the decisions made above. Attachments: Timeline Pa[:c 0 of 0 CC - Econ Dc, Stratcgy 917 07 \2 .doc ~~, u .~ c c....... U o c .... >. ~~.2..o~ Va.;;:...CQ.) ~ ~ ~~ E eijj~.g-g n..OUJ<(ro ~ C) CD .... CO ~ .... (J) .... CD C CD C .- E - CD c. 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