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HomeMy WebLinkAbout2007-0918 Council Packet CITY OF ASHLAND Important: Any citizen may orally address. the Council on non-agenda itemsduringtheyulJlic Forum. Any citizen may submit written comments to the Council on any item on the Agen~a, 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 ,onan.agenda item" Time pennitting, the Presiding OfficertyIay allow oral testimony; however;puhlic meetings law~arantees only publicattendance;~ot public participati()o. Ifyo~ wishto~eak, pJeasefill out theS?eaker Requestformlocated neartheentrance to the Council Chambers. Th.e chair will recognize;you.and infollTIyou astot~e,am(),UJ1t oftim~,alJ.()n~ to)'ou, if'aJlY"),'he~ime graJlte?wilJ be dependent to some extent on the nature of the item under discussion..th~.num. b~r.of people who wish:to 'beheard.<and the leIlgth of the agenda .. ,... . AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL September 18, 2007 Civic Center Council Chambers 1175 E. Main Street 6:00 p.m. Executive Session to discuss: pending litigation pursuant to ORS 192.660(2)(h) and real property transaction pursuant to ORS 192.660(2)(e) 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. APPROVAL OF MINUTES [5 minutes] 1. Special Meeting minutes of August 27, 2007 2. Executive Session meeting minutes of September 4, 2007 3. Regular Council meeting minutes of September 4,2007 VI. SPECIAL PRESENTATIONS & AWARDS None. VII. NSENT AGENDA [5 minutes} Minutes of Boards, Commissions, and Committees 2007-2008 Grant Aqreement with the Chamber of Commerce unter Internet Service Provider (ISP) Contract Approval 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 S2.04.040}) None. 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} COLNC II. MEETINGS ARi' BROADCAST LIVE ON CHANNEL 9 VISIT TIlE Cll YOI' .\SIII AND'S WLB SITE AT WWW.ASHLANDORUS X. UNFINISHED BUSINESS Schedule for Rates and Fees Review [15 Minutes] Record Submissions and Deliberations for PA 2007-00455, 247 Otis Street Final L Plan [30 Minutes] ~ ~~. /'l.ti.d. -to J){. ~ XI. NEW AND MISCELLANEOUS BUSINESS ~tJ..f~~ ~ ~ p. .' ~ PERF Report Update [20 Minutes] -"I . ~ ft> ~.I} ~ 1'1r Transient Occupancy Tax Rate Increase and Use of Proceeds [10 Minutes] - -. - '(] ~/Economic Development Strategy [10 Minutes] XII. ORDINANCES RE NS AND CONTRACTS eading of esolution ti d, "A Resolution Establishing the City of Ashland Citizen 'R'! Advisory Ad C lee" d >-r cV Second reading by title only of an Ordinance titled, "An Ordinance Amending the K n<<., (\ C~ / Ashland MUnlclpil'1 Code, Land Use Ordinance, Regarding Conversion of Existing CSll~~~'1lSY Rentals Into For-Purchase Housing in Multi-Family Zoning Districts" 3\-'01\. 3. Second Reading by title only of an Ordinance titled, "An Ordinance Amending AMC , 3.08.020 To Apply Ethics Provisions to Employees, Appointed Officials and Elected Officials" XIII. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS 1. Further Discussion of implementation of July 18, 2007 Council Motion regarding Mt Ashland Association 2. Discussion regarding Mt Ashland Association wastewater treatment plant 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). COUNCIL IVIEETINGS ARE BROADCAST LIVE ON CHANNEL 9 VISIT TilL. CITY OF ASHLAND'S WEll SITE AT WWWASIIIANDOIU!S CITY COUNCIL CONTINUED MEETING Allgust 27. :;007 PAGE J ofl MINUTES FOR THE SPECIAL MEETING ASHLAND CITY COUNCIL August 27, 2007 Civic Center Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Morrison called the continued meeting to order at 6:07 p.m. in the Civic Center Council Chambers. Councilors Navickas, Silbiger and Jackson were present. Councilor Hartzell arrived at 7:06 p.m. Councilors Chapman and Hardesty were absent. UNFINISHED BUSINESS 1. Further Discussion of Library Options Mayor Morrison asked the City Administrator, Martha Bennett, to summarize the Council's options for re- opening the library. Ms. Bennett stated the Council needs to address two items concerning this issue. The first being that Staff require direction on what services the library will provide to determine a budget and possible contract with the county. Secondly, in light ofthe upcoming election, Staff and the public need direction on what the city will do ifthe library levy passes on September 18,2007, because the following week the city will be required to certify a tax levy. Additionally, Ms. Bennett discussed correspondence the city received from the state librarian, Mr. Jim Scheppke. She stated Mr. Scheppke recommended the city use a specific model utilized in Benton County. She added she was unsure if this specific option could be successfully implemented by November. She further discussed each of the previously purposed options, as well as the state librarian proposal, and addressed some of the positive and negative aspects of each as well as any changes, if any. 1. Augment County/LSSI Services: An average household in Ashland would pay $32 per year for 40 open library hours. This would increase to $46 per year for an additional 24 hours. This option is consistent with the ballot title language, and it meets the required criteria if guaranteed through a contract with the County or LSSI. Without a contract, this option does not meet criteria. 2. County Base Service: No changes noted in the analysis of this option. The Ballot measure is irrelevant if the city chooses to implement this option. 3. Attempt a Hybrid Option: Although there is significant interest in this option, there are many obstacles to overcome. It may look attractive on paper, but the County will not agree to it because they feel the required terms by Oregon employee transfer laws will be too onerous on them. This option is consistent with the ballot title and meets most of the criteria, with the exception of opening the library quickly. 4. State Librarian Proposal: The City of Corvallis operates the four libraries in Benton County. The County contracts with the City and pays for half of the operating costs. There are two noticeable differences between their situation and the Ashland/Jackson County situation; Benton County only has four branches, and the relationship between Ashland and Jackson County differs. Ashland would need to maintain an excellent working relationship with the other cities in Jackson County, particularly Medford. 5. Execute Existing Intergovernmental Agreement: It is questionable if this option is consistent with the current ballot title. The ballot title does not address the required upfront costs if the City were to operate its own library. A significant change in policy would be required because this option does not support the current policy, which is to support and maintain the regional system as much as possible. This option best meets the local determination and fair treatment of employees criteria but does not meet the criteria of providing sufficient service, or providing it quickly. CITY COUNCIL CONTINUED MEETING A IlgllS! 27, 1007 PAGE 2 017 Comment was made questioning whether or not the City's living wage ordinance applies ifthe county hires a contractor and the City engages additional services from that contractor. Ms. Bennett eXplained that "living wage" only applies to full-time city employees. She added the City can request that the contractor pay what is consistent with the City's other contracts. Mr. Richard Appicello stated if the City were providing funds, these funds would be used to pay living wages. He added if other funds are coming in from the County, the decision is theirs to make. Comment was made questioning how the City and County employee transfer laws would apply. Ms. Bennett responded by summarizing a specific Oregon law that states that when a government function is transferred from one government to another, the receiving government must retain the employees ofthe giving government. She stated if the library were reopened, the City would have to retain county employees. She added that the only employees who would transfer would be those who have seniority rights under the Union Contract. Ms. Bennett stated the City would not take the county employees' union or union contract; County employees would join the City's existing unions. Additionally, she said the City would retain these employees at their current salary rate for 12 months and meet County requirements that govern employee leave banks including sick leave, but most likely not vacation time. She added the City must also maintain county employee retirement packages. She noted the City is allowed to change the number of positions at the library but must provide a good reason for doing so and must remain committed for a period of 12 months. Ms. Bennett added the library would have to be closed for 12-18 months in order for transfer laws not to apply. She stated she had requested a copy of the County's contract with their employees to verifY the exact amount of time the library must be closed, as Oregon law states 12 months but the contract may state 18 months. Carol Voisin/908 Fox Street/Questioned what information was received before the County made their decision and whether or not the City had any input. Ms. Bennett responded that the City was not able to read any of the proposals in advance and did not have input. Ms. Voisin also questioned why the County could not keep the libraries open with funding given to LSSI. Additionally, she voiced her opinion that she does not support privatizing libraries. Maureen Battistella/395 Hemlock Lane/Summarized her conversations with different librarians in the areas where LSSI libraries operate, such as Fargo, North Dakota and Riverside, California. She stated her objective was to find out how LSSI operates in these communities. She considered several criteria such as staff morale, funding, flexibility of the administration, grants, etc. Ms. Battistella stated the three different librarians she spoke with were unanimous in stating LSSI libraries were innovative, responsive to their communities, and maintained positive employee morale. Rich Rohde/124 OhioNoiced his opposition against the option of contracting out the City's basic governmental functions. He stated that the City in the past, had reached a consensus that public money should pay living wages and benefits. He stated his understanding of living wages is that it is not just applied to full- time employees. He also noted the living wage ordinance does not support the contracting out of government jobs for the sole purpose of saving money. Mr. Rohde urged the council to consider other options, such as the Hybrid Model, to reopen a fully functioning library system that is accountable and serves the entire community. Steve Neuberger1784 Ashland StreetNoiced disappointment with the Mayor's statement that he could live with LSSI for two years. He stated he supports the library levy and would like the library to be open more than 24 hours a week. Additionally, he stated he would like the library to offer a higher level of services and CITY COUNCIL CONTINUED MEETING AI/gust 27. J007 PAGE 3 oI7 staffing than what the Jackson County Commissioners had previously proposed. Mr. Neuberger added he would like to City to select the Hybrid Option and utilize the Ashland Living Wage Ordinance. He referenced an article, outlining how LSSl works and the negative impact it has on staff, operating hours, and workloads, before stating his opinion that LSSl is an offensive plan. He noted other citizens' repugnance with privatizing libraries and their desire for a long-term solution, such as the establishment of a library district. He stated the city needs to take action and focus on the issue of reopening the library, as opposed to making profits. Bill Heinmann/647 Siskiyou/Shared his thoughts on whether or not to support the levy. He noted the current number of increased taxes, and felt the possibility of an additional tax would contribute to already difficult situation for the City and its citizens. Mr. Heinmann suggested the City use funds the County is providing as well as their own funds to augment services. He stated this option would serve as a compromise between the City and the Council and, as an added benefit, there may be funds left over for future budget problems addressing the needs of the entire city. Wes Brain1298 Garfield StreetIV oiced his concern with privatizing the library. He noted Jackson County has demonstrated horrible financial planning in the past. He stated the privatizing of the library is poor financial planning because many businesses will not come to an area without an operating library. He added this option would result in a loss of living wages. He voiced his concern with the loss of a public meeting place, making it more difficult for citizens to gather. Mr. Brain stated he was present to honor the memory of Alice Grimes, a former librarian who would be upset with the idea of a closed library. He added the City of Ashland needs a professional public library system and supported Ashland's view ofleading the way by not privatizing libraries and providing living wage jobs. WaIt Marsh/943 Clay StreetIVoiced his opinion that mercenaries are running the City library. He added he resents the idea that profits will come out ofthe pockets oflibrary employees, and he will never support library mercenaries coming in. He stated that if the County's proposed plan is approved, he will go to Bloomsbury and spend all of the money he can afford, he will reread all of the 1,000 books he owns and, the day the library opens under the County's plan, he will bum his library card on the front steps of the library. John Sexton/32I Clay Street #28/ A former Ashland librarian, Mr. Sexton voiced his concern that the County is moving too quickly to resolve the library issue. He stated he believes the reason for this is due to the County's objective to take the decision out ofthe City's hands. He added the County is moving ahead with LSSl regardless of the City's other proposed options. As a result, the City will only have the option of augmenting those services. He proposed his willingness to work for the City as a librarian, separate from LSSl and the County. Helga Motley/BI Gresham/ Voiced her concern with the County controlling the library as opposed to the City. She commented on the lack of information associated with the County's proposal. She also stated her concern that a citizen's right to privacy, when utilizing public library services, will not be protected ifLSSl takes over. Amy Blossomil40 Susan Lane/ Shared her opinion that the library will only reopen through the option the County has provided. She suggested the City augment services through the library levy and monitors the results of library services provided to ensure they meet the needs of the community. Anne BilIeter/4999 Griffin Creek Road, Medford/Suggested the City augment the County's budget to provide the best possible library service in Ashland, as well as the County. She stated research supports the fact that LSSl is not privatization but rather outsourcing. She added policy-making, on issues such as privacy, would remain with the County. She commented that this option should be regarded as short term, as the main priority is the reopen the library as quickly as possible. She added solutions for long term un COUNCIL CONTINUED MEETING Augus! 27,1007 PAGE 4 of? county funding would be addressed later. Kathleen Leary/I97S Ashland Mine Road/ Currently an employed librarian, she stated it is very important the public have access to any knowledge available. She also voiced her opinion that it is ironic that local librarians and librarian employees have been under attack while, in some instances, they have continued to serve the public with a positive attitude. Bill Street/ISO Mead Street/Referenced an article called, "The Company Background," to support his concern with the City utilizing LSSI services. Specitically, he stated employees and citizens, in other communities where LSSI failed, were not allowed to discuss what went wrong when a contract was terminated. He added LSSI required employees to sign nondisclosure agreements to prevent public disclosure of this information. He stated his concern with LSSl's business practices as well. He suggested, if the City chooses the LSSI option with the County, that the City ensure the terms of the contract clearly show what LSSI controls and where their resulting profits will go. Pam Vavra/457 C Street/Suggested the City consider the option of contracting with the County, as opposed to LSSI, to provide services as they had previously been provided. She stated her concern that the County is moving too quickly and noted County commissioners are not taking the opportunity to listen to all of the public's concerns. She urged the City and County to consider outsourcing later. Ron Roth/69S0 Hwy 99S/Suggested the City consider the idea of a library district that would follow school district boundaries. He noted he is currently unable to vote for the levy in the upcoming election, but with this type of district, he would be able to, despite living just outside of Ashland. He voiced his initial concerns with the outsourcing of library services, but stated it was better than no service at all. He announced a fundraising event on September 8 at Eagle Mill Farm to gamer funds for library services. Joshua Gordon/945 Cedar WayN oiced his concerns with privatization and shared his opinion that it will not be easy for the levy to pass, as there is a lot of division and/or confusion on the issue. He suggested the City take care to ensure, whatever the election results may be, they carry the decision out as soon as possible with everyone's support. Councilor Hartzell arrived at 7 :06 p.m. Mayor Morrison noted the purpose of the current meeting was to eliminate any existing confusion among Ashland's citizens concerning the library levy. Pepper Trail!20II Crestview Drive/Stated the council has two decisions to make; whether or not to augment the County's proposal or create its own City system independent of an outsourced option. He voiced his opinion that County Commissioners have destroyed the County system. He also stated no matter what the outcome of the levy, the City of Ashland needs to be clear that the long-term goal is a public county library system. He added if a county library system is not possible, an Ashland public library system should be a priority. Marilee Jenkinson/2200 Ashland Street/ Voiced her hopes that, no matter what options the City and/or County choose, the local children are not let down and are provided with an open library. Mayor stated the Council will accept a short-term solution to reopen the libraries tornow, but they will not stop working towards a long-term solution that will meet the needs of community. He added the Council is very aware of the issues presented and that decisions may need to be made that not everyone will support. CITY COUNCIL CON7'fNUED MEETING AI/gust 27, ]007 PAGE 5 of7 Ms. Bennett stated that although the Hybrid Solution seems to meet the needs of everyone, without the County's approval it may not be an option. She also stated the "go-it-alone" option might be difficult to carry out as well. She added this option would most likely require a new ballot, as the current ballot title language does not cater to this option. Under this option, she commented the City could approach the County about purchasing their collection, as it may be cheaper to do so rather than building a collection. Comment was made requesting clarification on whether or not, under the Hybrid Option, there are other variables that could be negotiated with the County that have to do with governance. Ms. Bennett responded that if not for the public employee transfer issues, the Hybrid would be a lot easier to accomplish. She suggested the City contract through the County's vendor to ensure local involvement in material selection and information dispersal. She added quality of service is an important issue to address as well. She stated the City would need a citizen body to give feedback to the County in order to adjust services in case of problems that may arise and that would be difficult to make Ashland employees public employees, if the County says no. Ms. Bennett explained that if the library is to be reopened by November I, 2007, the City needs to address these issues now. She further clarified that the transfer law only applies to the transfer of employees from one public employer to another. She stated transfer laws do not apply to the County because LSSI is a private company. Councilor Navickas commented he is strongly opposed to privatization and outsourcing. He stated the City needs to keep all of their options open and consider the "go-it-alone" alternative. He suggested the City send the County a letter stating they are taking control of the building. He added the City could then begin negotiations around a possible hybrid agreement. Councilor Hartzell stated that the Council needs to consider all aspects of privatization and be grounded in the information provided. Councilor Jackson stated she feels strongly about fair wages and unions but does not think that Ashland can lead the rest of the County, as it is not the largest city within the County. She noted much of the County did not vote to support libraries. She stated her main concern was to reopen the County libraries and that the City of Ashland has the opportunity to change County involvement by voting. She noted Ashland is part of the system, and voiced her opinion that she does not think the library will be re-opened within a calendar year if the City argues with the County over who owns the building. She suggested the City supplement services with the County. She added the most important immediate decision to make is to support the levy to reopen the library. She stated her desire for a public library with public employees but noted she cannot make this decision for the County. She urged the Council to support the levy and work to supplement the library services that can be offered in Ashland. She added the City should clarify the exact amount of the library levy. Councilor Silbiger voiced his support for the ballot measure to re-open the library. He noted the County is not willing to provide additional funding other than what is outlined in their proposal. He stated the purpose of the current meeting is to give the public a clear idea on the direction the Council is taking concerning the library issue. He voiced his unhappiness with outsourcing, but noted the situation is temporary. Mr. Appicello clarified that the City has an existing Intergovernmental Agreement (IGA) with the County until they choose replace it. He added changes could be made through negotiations. Councilor Hartzell stated conducting library operations is different than capitalizing library operations. She CITY COUNCIL CONf'lNUED MEETING August 27, ](}07 PAGE 6 ofl stated funds could be used to buy the things the County takes back. She voiced her concern that this is not a short-term solution and noted the importance of ensuring any decisions made are temporary. Councilor Navickas also voiced his concern that whatever short term option the City chooses will not remain short term. Comment was made that it is important for the City to send a clear signal to the voters on the direction the City is taking to open the library as soon as possible. Mayor Morrison reminded the council that the most important issue at hand is to reopen the library and that there should be no confusion on the library issue. He voiced his support on augmenting the proposed library services and supporting the library levy in order to accomplish this. He stated the City needs to determine the level of service, ensure fair compensation and negotiate with the County for a long-term solution that provides a public library system in Jackson County. Councilor Jackson proposed several items for negotiation with the County such as; hours of operation, children's programs, a combination of the living wage, professional staff, privacy issues and a means for accessing quality of service with the ability to revisit the contract. Ms. Bennett stated that meeting minimum requirements in the ballot measure would be negotiated with the County. Ms. Billeter commented that the only difference between the proposal LSSI previously submitted and the revised proposal is the reduction of hours. She noted the City should not need to supplement the book budget. Ms. Bennett noted questions/issues she had previously asked the County to address and stated she did not yet have any details on them. County Commissioner Dave Gilmour was present and shared with the council that there is no question that County funding is restricted, and the City cannot rely on the Federal Government in the future for this funding. He voiced his disappointment in the failure of the ballots in the May election. He noted the number of communities that are suffering due to property taxes. He commented that a IS-library system makes sense, despite the fact that a majority of citizens in the County are against the idea. He explained that staff is leaving to pursue jobs elsewhere, and something needs to done quickly before they are all gone. He has read the information on LSSI and noted that oversight is important. He suggested that anyone concerned about LSSl should speak with the Library Advisory Committee so that the committee can take into account these concerns while going over the contract. He commented there is a good chance the libraries will be open possibly earlier that November and voiced his hope that communities will come forward to augment services. He suggested operating as a separate district, but noted taxes will have to be lowered to accomplish this. He stated the City's focus should be to supplement, as the County will not be able to provide full services. Mr. Gilmour responded to questions in regards to the willingness of the Commissioners to negotiate a contract with liberal escape clauses that this information will have to be negotiated in the initial contract, and it is not clear how willing County Commissioners will be, or LSSI. He added the Library Advisory Committee will be formulating a contract and recommended the City make sure all-important elements, such as an escape clause, are in the contract. Ms. Billeter provided the names of all the members sitting on the Advisory Committee, and noted citizens can call the Library Business Office to request the e-maIl addresses of these members. CITY COUNCIL CONTINUED MEETING A I/gus/17, ]()07 PAGE 7of7 Jackson/Silbiger mls that the council support the local option levy in order to keep options open, that the City Administrator continue to negotiate with county stafftoward augmentation of a contract being discussed with the county and that the city will not levy anymore than necessary. DISCUSSON: Councilor Navickas stated he is not convinced the City can legally use the levy to augment the County system, and he does not think the City can provide the services they want through LSSI. Councilor Hartzell stated the City is not giving voters a clear sense of how much of the levy they would use, as well as the services they would provide. Councilor Silbiger agreed and stated that the City should clarify the amount of the levy to be used Councilor Jackson stated the City should stick to the minimum amount of services that is offered in the ballot. Ms. Bennett explained that the council could determine how much of the levy should be used but that it depends on what services the City wants to buy. Mr. Appicello clarified that the County has an obligation to provide free library to citizens when the County uses a private corporation and that the language in the Ashland measure on charging non-residents would not apply. Councilor Navickas voiced his opposition to limiting the levy to a specific amount, stating it will appear hollow to the voters and eventually the City will end up changing the levy anyway. Councilor Hartzell commented that the ballot language prohibits the City from using the levy for anything other than library services. She stated it would be difficult to negotiate some programs because they are open- ended. She suggested allocating funds to hire an individual to track and monitor the effects of the contract and would like the City to have maximum flexibility for future options. She suggested exploring local donations, which will become Ashland property, and voiced her support for volunteers. Roll Call Vote: Councilors Jackson, Hartzell, Silbiger, YES. Councilor Navickas, NO. Motion passed 3-1. Staff will continue to bring back reports to the Council as new information is received and the issue will be added to the upcoming executive session agenda. ADJOURNMENT Meeting adjourned at 8:40 p.m. Barbara Christensen, City Recorder John W. Morrison, Mayor Ash/and Cit}' Council Meeting September 4. 2007 Page I of II MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL September 4, 2007 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 Councilors Hartzell, Navickas, Hardesty, Chapman, Jackson and Silbiger were present. MAYOR'S ANNOUNCEMENT OF BOARD AND COMMISSION VACANCIES Mayor Morrison announced vacancies on the Citizen's Budget Committee as well as the Conservation, Housing, Tree, Forest Lands and Traffic Safety Commissions. APPROVAL OF MINUTES The Executive Session minutes of August 21, 2007 and Regular Council minutes of August 21, 2007 were approved as presented. SPECIAL PRESENT A TIONS & A WARDS Presentation of Award of Excellence for the Certificate of Annual Financial Report (CAFR) was made and accepted by Administrative Services and Finance Director Lee Tuneberg. CONSENT AGENDA 1. Minutes of Boards, Commissions and Committees. 2. Acceptance of Donated Property. 3. Liquor License Application - Brother's Restaurant. Councilors HartzelllNavickas mls to approve Conseut Agenda items #1 and #3. Voice Vote: all A YES. Motion passed. Councilor Hartzell questioned if wireless access is currently free to users. Mr. Joe Franell explained that users are currently paying for this service. Councilors Hartzell/Chapman mls to approve Consent Agenda item #2. Voice Vote: all AYES. Motion passed. PUBLIC HEARINGS 1. Public Hearing to approve a Quitclaim Deed to Terminate a Portion of a Public Utility Easement at 659 Fordyce Street. Public Works Director Paula Brown reported that this is a termination ofa public utility and that an easement will be acquired in order to move forward with the railroad crossings at East Main Street. City Engineer Jim Olson noted there are two items that must be completed before a contract can be ordered for the construction of the East Main rail crossing:, 1) Railroad must install concrete crossing pannels, and 2) City must aquire a pedestrian easement that allows for a small portion of sidewalk on the resident's property. He explained that the resident had requested a trade for an existing public utility easement that fronts East Main Street which resulted in the quitclaim deed. Ashland City Council Meeting September 4, 2007 Page 2 oj II Councilor Hardesty noted that prior testimony from the resident suggested the sidewalk would be raised which allowed pedestrians to see into the property. She questioned if this was still going to be the case. Mr. Olson replied the new portion of the sidewalk will be at the same level as the existing sidewalk and that the property is at a lower elevation. He added the City did offer to build a fence, but this was declined by the resident. Public Hearing Opened: 7:17 p.m. Public Hearing Closed: 7:17 p.m. Councilors Hartzell/Jackson m1s to approve the Quitclaim Deed. Roll Call Vote: Councilors Chapman, Hardesty, Navickas, Jackson, Hartzell and Silbiger, YES. Motion passed. 2. Pnblic Hearing to Adopt Miscellaneons Fees and Charges where Necessary. Administrative Services and Finance Director Lee Tuneberg referred to the Council Communication to summarize the list of fees proposed which identified different departments, types of fees proposed, method of calculating the fees and the charges themselves. Mr. Tuneberg clarified charges in regards to police reports. Ms. Brown clarified charges in regards to street closures and driveway painting. Comment that noted the difference between Ashland Fiber Network (AFN) rates and fees and the possibility of the City becoming an lSP was made. Pnblic Hearing Opened: 7:33 p.m. Public Hearing Closed: 7:33 p.m. Councilors Jackson/Chapman m/s to approve Resolution # 2007-34. Roll Call Vote: Councilors Silbiger, Jackson, Hardesty, Navickas, Hartzell and Chapman, YES. Motion passed. PUBLIC FORUM Selene Aitken/446 Helman Street/Spoke regarding her recent work in Afghanistan to co-teach "Non- Violent" teachings. She announced a slide show presentation/talk, centering around her recent travels, on September 19 at 7 p.m. at the Ashland Community Center. UNFINISHED BUSINESS 1. Update on progress of Library Discussion (Please note: any attachments will be available at the meeting) City Administrator Martha Bennett presented the Council with a list oflevy minimums that was submitted to the County concerning the library. In addition, she asked the county to verify cost estimates for additional hours, services and wages for professional staffing. Ms. Bennett explained that she had inquired about a termination clause that would apply to all 15 branches in the County and that the County had responded negatively to this. She explained that the County is considering a termination clause that may apply just to the City of Ashland. Also, the County is not open to the suggestion that all donated materials remain in the library branch in which they are dontated to. She stated the County is still in discussion on many of the different issues raised. Ms. Bennett stated that in order to reach the levy minimum, the City would have to purchase an additional 16 hours of service as well as an additional $25,000 to provide living wages. She provided cost estimates concerning the levy and desired services. Councilor Hartzell suggested that the council indicate to the voters how much the City is willing to spend, and Councilor Hardesty voiced her concern in regards to monitoring of the contract. Ashland City Council Meeting Septemher 4. 2007 Page 3 oj II Ms. Bennett explained the City would have an opportunity to meet with LSSI quarterly to provide input concerning the collection and quality of services provided. Ann MagiII/77 Manzanita Street #lNoiced her appreciation with the Council's willingness to work with LSSI and the County. She offered a definition of "privatization" as well as "out-sourcing." She voiced her hesitation with the utilization of LSSI. She stated her belief that with a tight contract this option could work as a transitional period for two years with the prospect of a better solution at a later time. Dennis Donahue/48 Gresham StreetNoiced his concern with the proposed levy and the lack of information associated with levy. He stated his opinion that it is incomprehensible the City is still trying to sort this information out when the library ballots are already in the hands of the voters. He noted citizens are being pushed to the limit in regards to taxes. He added failure to explain what these taxes are being used for specifically is embarrassing. Pam Vavra/457 C Street/Echoed many comments made by Ann Magill. She voiced her support to augment the county library proposal with LSSI through the city levy. Mat Marr/955 N Mountain Avenue/Chair of the Ashland School Board. He eXplained the important role a public library system plays in the education of public school students. He added school libraries do not provide enough materials needed for student research projects. He urged the Council to support the County's proposal to contract with LSSI. He also stated it was important for voters to support the levy because it is vital to our community and the library system. He read aloud a Resolution, approved by the Ashland School Board Commissioners, supporting the opening of the library for the benefit of the public education system. Mayor Morrison stated he is very proud of the community and its response to the library situation, and he added the City of Ashland has not been "asleep at the wheel," as was previously suggested. He stated the ballots were sent out with the best estimates provided to the Council at that time. He made it clear that the City is committed to providing a library system at the same level the community has been accustomed to and does not intend to levy more than what is necessary to do so. Councilor Jackson stated the reason the Council decided to send out a September ballot was to open the Ashland library before the end of the fiscal year. She added this decision had to be made during the normal budget cycle of June 2006. She noted there is no certainty that the County will sign a contract with LSSI, despite the City's statement that they intend to augment a County contract. Councilor Hardesty stated the Council did not know what the County was going to do when the ballot measure was drafted, and the estimate was based on what the City thought they could do at that time. Councilor Hartzell voiced her support to reopen the library for 40-hours a week with Ashland's Living Wage in place. She advised discussing with the County the option of additional hours, implementation of outreach programs and city contract monitoring. Councilor Jackson noted there is a school levy on the November ballot that will lower taxes paid by Ashland property owners. Councilor Navickas stated it is important to put forward honest numbers concerning the levy and allow room for long-term solutions. He suggested a 35-cent tax levy, as additional costs may develop throughout the process and that a 21-cent tax levy is not a realistic number. Councilor Silbiger noted the importance of the City sticking to the levy they decide upon to maintain voter trust. He stated his preference that the tax levy be less than 25 cents. Ashland City Council Meeting September 4. 2007 Page 4 of II Councilor Chapman stated the ballot measure aligns with what the Council is proposing and voiced his support for a levy of20 cents. He noted the levy situation is somewhat difficult, since there is no finality on the County's contract. Councilor Hardesty agreed it is important to negotiate for 40 hours, living wage, outreach programs and city contract monitoring. She stated the voters should be aware that the "opt out" clause, after two years, is important during negotiations. She also voiced her support of a 20-cent tax levy. Councilor Jackson stated the estimate should support ballot language in addition to commitments made by the County. Councilors Jackson/Hardesty m/s the City Council will levy 20 cents of the 58 cents if the County does reopen libraries at the proposed service levels and cost. DISCUSSION: Councilor Hartzell suggested raising the levy to 25 cents to provide the Council with some flexibility. Ms. Bennett clarified the City will pay up to 2/3 of operation costs in year one, and she added the City should be concerned about providing enough cushion over year two. Councilors Hartzell/Silbiger m/s the City will commit to spending up to 25 cents in the 2nd year. DISCUSSION: Councilor Jackson stated the Council's estimates are for a years worth of operation and noted the City would have a surplus after the current fiscal year. Ms. Bennett clarified how the monies would be distributed over a two-year period and a 25-cent levy would provide flexibility if needed. Councilor Navickas voiced his opinion that the budget presented is very "bare bones" and is disappointed in the Council for suggesting such a low rate. He added his concern with the possibility of the Council raising the levy later on. Councilor Chapman stated the issue is the Council's agreement to the contract they have given to the voters to pay for a temporary library system. Councilor Jackson stated the voters want to hear what the Council will levy in order to operate the library at the intended service level. Councilor Hartzell withdrew her motion to amend the original motion with approval from Councilor Silbiger. Discussion continued on original motion: Councilor Hardesty voiced her opinion that the withdrawn amendment was reasonable and an increase of 5 cents for contingencies is a good idea. Mayor Morrison stated there is a case to be made for flexibility and voiced his support for a 25-cent tax levy. Councilor Hardesty commented the Council is being fiscally responsible. Councilors Hardesty/Hartzell m/s to amend the existing motion to allow for a cushion in the second year of up to 25 cents. DISCUSSION: Councilor Navickas requested all motions be withdrawn. Roll Call Vote: Councilors Hardesty, Silbiger, Hartzell and Navickas, YES. Councilors Jackson and Chapman, NO. Motion passed 4-2. DISCUSSION on amended motion: Councilor Chapman noted there is a possibility the County could change their proposals. Councilor Silbiger stated it is important the Council present a united front to the public concerning the levy and to be clear in their commitment to carry it out. Mayor Morrison agreed and noted the Council is trying to be as prudent as possible as well as clear in their intent. Ashland City Council Meeting September 4. 2007 Page 5 of II Amended motion: The City Council will levy 20 cents of the 58 cents if the County does reopen libraries at the proposed service levels and costs, and allow for a cushion in the second year of up to 25 cents. Roll Call Vote: Councilors Jackson, Silbiger, Hartzell and Hardesty, YES. Councilors Chapman and Navickas, NO. Motion passed 4-2. 2. Council Discussion of Direction Related to Special Use Permit and Council Resolution 2005-35 (Mt. Ashland). Councilor Jackson read aloud the previous motion presented by Councilor Chapman that was approved by Council on July 18,2007. She eXplained that this is on the Council's agenda again to allow for further discussion and public input. Mayor Morrison noted those who had previously approved this motion agreed to bring it back for reconsideration before the Council. Councilor Hartzell requested discussion in order to gain a clear understanding from those councilors who approved this motion and what the motivation was behind the motion. Councilor Chapman eXplained that when he constructed the motion it had nothing to do with the current lawsuit, his intention was to resolve the City's issues with the Mt. Ashland Association (MAA). Councilor Jackson stated she had not seen the proposal beforehand but did support it based on the issues addressed, stemming from the resolution, as well as the comments the City had made on the draft EIS. She noted the City had not addressed the technical issues, as they are independent of the lawsuit against the Forest Service. She stated the issue at hand is establishing a working relationship between Mt. Ashland, the Forest Service and the City of Ashland. Councilor Silbiger stated he had not seen the motion prior to the meeting and supported it because negotiations had broken down. He added the main issue was ifthere would be sufficient funds available if Mt. Ashland goes bankrupt and cannot restore the mountain. He voiced his support of using the Special Use Permit (SUP) as a negotiating tool to attain protection for the city. Selene Aitken/446 Helman Street/Commented that until the issues before the circuit court are resolved, the timing is off on the SUP. She suggested waiting until these issues are addressed before moving on any action with the SUP. Angie Thusius/897 Beach Street/Speaking on behalf of Grandmothers and Friends in Green, the Peace Village and people in the streets, she stated she has several questions for the Council. First, she questioned why other councilors and the public were not notified that the Mt. Ashland issue would be addressed at a previous council meeting in July. She questioned why now is the time to negotiate rather than waiting for the appeals court to settle. She questioned how trading the SUP now is in the best interests of the citizens if the court rules that developing the middle branch is illegal. She stated trading the SUP opens the door for sale and resale to corporations. She questioned MANs financial status and noted, during the July council meeting, the City did not ask MAA to comply with a full year-by-year business plan. She stated two years ago MAA agreed to comply with such a plan in addition to full restoration costs, as described in the 2005 resolution. She noted the Council committed to having the MAA comply with the resolution and questioned why the MAA has not provided the Council with a business plan. She urged the Council, if they insist on negotiating with a self-elected ski resort board and plan to terminate the lease with MAA before the court settlement, to proceed with caution. She stated the only way the Council can reassure the community, and lead them into constructive compromise, is to allow the Court to make a decision and then proceed with negotiations. Peter Silverman/Ill Bush Street/Shared his opinion that there is a small group of people who are passionate about this issue on both sides. He presented a poll from his neighbors concerning their stand on the expansion: two in favor; 10 opposed and three were on the fence. He stated there are many people who Ashland City Council Meeting September 4, 2007 Page 6 oj I I do not speak up but are not in support of the expansion. Rivers Brownl1067 Ashland StreetlExpressed his concern with the idea of the City giving up the SUP and questioned whether the Council realizes the magnitude of such a decision. He suggested the City of Ashland vote to decide whether to give up the SUP and urged the Council to vote against it. He stated snow/global warming is responsible for SUP failure and reiterated to the Council how very important it is to keep the SUP as well as control of the watershed. Carol Starrl546 North Laurel Street/Questioned why the City would consider giving away the SUP to MAA without first seeing a detailed business plan that demonstrates the financial viability of the project. She stated no bank or private investor would trust a developer who would not provide a business plan for such a large and risky development and questioned why the City of Ashland would risk public assets and the future of the watershed under such circumstances. Allen Baker/l042 Oak Knoll DriveN oiced his concern about the amount of money the City is spending to fight MAA as well as the amount of money MAA is spending. He stated he disagreed with a memo written by Councilor Hartzell, in which she called the issue a complex problem. He noted the SUP was given to the City to hold in trust and it was the citizens who paid for the SUP. He added it would be wrong to change now, and the Council should give the SUP back to its real owners: the citizens of Ashland. Suzanne Frey/l042 Oak Knoll Drive/Stated she is unsure what decision the Council should make concerning the SUP and voiced her concern with the context of the issue being discussed. She noted there was a time when the City and MAA worked hand in hand. She voiced her opinion that the expansion issue has dragged on too long, and people need to look at the overall picture. She provided the Council with a letter and pointed out that public records indicate the ski association has compromised numerous times. She stated ifthe goal is to have a viable ski area with responsible stewardship of the environment, this goal is being lost. Julie Norman/596 Helman StreetNoiced her concern that there is no strength in the criteria provided by the Council and urged the Council to follow through in attaining financial information. She noted the effects of global warming in the area and provided data from ski areas around the country. She voiced her desire for information on how global warming will effect the financial situation of Mt. Ashland. She commented it is premature to transfer the S UP until the 9th Circuit Court has ruled. She voiced her appreciation that MAA is a signer of the Sustainable Slopes Charter and Vision Statement and noted the charter aims to avoid damage to natural resources, minimize removal of trees and protect wetlands. Marilyn Briggs/590 Glenview DriveIReminded the Council they are elected and only here for a short period of time. She referenced the City Charter to state the importance of minding the watershed and told the Council it is not theirs to give away. She stated the Council should keep the SUP perpetually. Ron Roth/6950 Old 99 South Highway/ Provided the Council with a handout on the "Save Mt. Ashland" original campaign. He stated he does not support MANs decision to file a lawsuit against the City or their decision to close the mountain on Monday and Tuesday without community input. He noted their responsibility is to operate the mountain, not close it down. He urged the Council to choose a non-action alternative pending a decision from the 9th Circuit Court. He noted status quo worked fine for 13 years when the City served as the permit holder and stated this should not change. He suggested the MAA board be more open to the Ashland community and suggested the possibility of having a council liaison on the board as well. Paul Copeland/462 Jennifer Street/Clarified the lawsuit filed by MAA was made 10 days before the Council motion was passed. He suggested the City not transfer the SUP until a decision is made by the 9th Circuit Court of Appeals and that the City can negotiate a settlement up until the court date so there is no Ashland City Council Meeting September 4, 2007 Page 7 of II need to rush a decision on the MAA lawsuit against the City. He added the City should not be in a hurry to give MAA what they are asking for. He noted bad snow years in the future could put MAA out of business, and if the City no longer holds the SUP there is no guarantee who may hold it in the future. He urged the Council to stick to the terms of the 2005 resolution as a bargaining point. He voiced his opinion that the restoration record of the Forest Service is not good and mentioned other ski areas that are considered environmental disasters. He stated the City must define its own restoration plan in order to ensure it is carried out. He urged the Council if the SUP is transferred that they realize there is a value to the lease. He also stated the importance of having an independent appraisal of the value of the assets transferred. John Fisher-Smith/945 Oak StreetIV oiced his appreciation of comments made by Ron Roth and stated his opposition to the Mt. Ashland expansion project. He stated his belief that MAA is emboldened by the proposed expansion being financed with no debt service or business plan. He noted global warming could put Mt. Ashland out of business and voiced his opinion that the Mt. Ashland ski operation should be geared to operate as long as global climate change permits. He stated his belief that emphasis should be on making the existing area work as efficient and profitable as possible in order to serve the public. He added there is a conflict between winter recreation and city water, and voiced his opinion that watershed value should take precedence over winter recreation. He requested the Council postpone the decision on the SUP until there is a ruling by the 91h Circuit Court and urged them not to give over the SUP. Jay Lininger/95 Marion Lane, Eugene, OR/Expressed his fondness ofthe Mt. Ashland ski area and his support for the initial motion by Councilor Chapman. Ifthe expansion is a certainty, the City should secure the terms of the 2005 resolution, which include financial reassurances as well as the QNQC mitigation process. He stated he does not feel the expansion is a certainty but asked the Council to withdraw their initial motion and wait until a decision has been made by the 91h Circuit Court. Councilor Jackson stated the City is protective of the water supply and watershed but the issue at hand is not the expansion process but rather the operation of the ski area. She noted the current lease does not address environmental issues and the possibility of the City purchashing a bond for the value of restoration efforts. She stated the City needs to manage the rest of the watershed and noted the ski area is only in one comer of 16,000 acres of forest lands that are subject to fires. She referenced a Sierra Nevadas study on water to support her statement that if a forest is too dense, less water is produced from the watershed. She stated the City needs to take a stronger position on the watershed issue and not give it away. Councilor Hartzell agreed with Councilor Jackson that the lease does not address environmental issues but the SUP does. She stated the Council should wait until a decision has been made by the 91h Circuit Court before moving forward on a final agreement and that an independent consultant be hired to assess what needs to happen on the mountain for the next 25 years. She stated the SUP allows the City to have more of a say in what happens with the watershed and voiced her concern with the motion that was previously passed. She suggested the Council be involved every step of the way during the negotiation process and urged them to utilize an independent 3'd party Quality Control Team. She also stated the importance of giving policy direction to staff before they head into the negotiation process and what the liablity for the city would be by giving up the SUP. Councilor Navickas read aloud a brief summary of the history of the ski area which included the number of times it has gone bankrupt and the number of different owners. His opinion is that there is an attidude that the City will give up the SUP in order to escape liability ifMAA closes and that if the city gives up the SUP it would open the door for expansion without City control but that the City would still have liability. He voiced his frustration with the developing chain of events and addressed the conditions of the ski area by presenting several photographs to the Council. He urged the City to take action concerning the current conditions of the ski area and voiced his support for an independent consultant to review issues on Mt. Ashland City Council Meeting September 4, 2007 Page 8 oj II Ashland. In addition, he showed photos of the 1995 municipal watershed flood and warned against expansion, which would increase the potential for peak flows and sedimentation. Mr. Navickas stated if MAA moves forward without oversight on these issues, the City is putting itself at risk for another major flood. He voiced his opposition against expansion and stated the Council needs to look at the big picture and focus on protecting the watershed rather than focusing on the specifics of the current lawsuit. He stated if the City does choose to give up the SUP, they need to define it in broader terms. He presented a map of a visual image of the proposed expansion and noted it doubles the footprint of the watershed. He pointed out areas that have been c1earcutted and commented there is a severe fire risk as a result. He stated the City has allowed the Forest Service and MAA to abuse the City's powers and voiced his opinion that the City has made dissapointing moves in regards to the watershed. Councilor Hardesty voiced her opposition against using the SUP in negotiations. She stated it would be disingenuous of the City to use it in the negotiation process and expect to gain all of the conditions they want in return. She stated the City should find out the cost ofrestoration, monitoring for QNQC and a quality control team on its own. She commented on the idea of consolidation and stated the City needs to be aware this could happen if they give up the SUP. Councilor Silbiger agreed the City needs protection, and the issue has nothing to do with expansion but with today's reality. He clarified the Council is not trying to get rid of the SUP but rather trying to negotiate terms using the SUP as a tool. He noted the motion passed procluded previous discussion or direction that staff had been given in terms of negotiations. He stated the City does not have protection, and he added if MAA goes bankrupt the City will be stuck. He commented the City needs to have a plan in place before the 91h Circuit Court rules. Kim Clark/General Manager MAA/Encouraged the Council to support the motion presented by Councilor Chapman that was approved. He stated MAA is in a landlord/tenant sitatuion with the City and in this type of situation both sides need the ability to talk. He noted this has not been possible as staff has not been allowed to speak to MAA due to previsous decisions. He commented that the 9th Circuit Courth does not have any effect on this motion and is a separate issue that deals with the proposed expansion. He noted the importance of communication lines between the City and MAA. Mr. Clark clarified that all discussion held in mediation is covered by priviledge and MAA cannot divulge this information. Mayor Morrison explained that both parties did agree to confidentialty in terms of mediation. Council and staff discussed the difficulty of discussion with MAA due to the pending lawsuit. Mr. Clark shared that MAA would like to come to the table and begin discussions for resolution. Ms. Bennett reminded the Council that many of them did not feel it was a good idea for her to talk to Mr. Clark when she approached them previously. Councilors Hartzell/Jackson m/s to extend meeting until 10:30 p.m. Voice Vote: all A YES. Motion passed. Ms. Bennett clarified that the items she and Mr. Clark were to talk about did pertain to the pending lawsuit. Councilor Hardesty stated that negotiations do concern the SUP and the Council must be prepared to give up the SUP during the negotiation process. Mayor Morrison stated there has been no strategy on the City's part on how to move ahead with the Mt. Ashland issue. He noted the City has been running from lawsuit to lawsuit, mediation to mediation and have not developed a strategy based on attainable goals. He commented the motion was never to give Ashland City Council Meeting September 4. 2007 Page 9 of II away the SUP but a way to conduct good faith talks and, it is time to start laying a foundation for discussion. He stated he is sensitive to those who have said the City should wait until the ruling made by the 91h Circuit Court but the City should be moving ahead during this time and all issues need to be on the table cocerning the SUP and the lease agreement. Mayor Morrison stated if the City is able to negotiate a defined document between all three parties involved, they would have a more clear operational document that could address details. He urged the Council to take the issue seriously and avoid an expensive and vicious cycle of litigation that accomplishes nothing. He stated the importance of moving ahead with a plan to protect the watershed as well as the economic interests ofthe City and MAA. The plan should delineate the City's responsibilities, strengths and powers in regards to the Forest Service, and address the reality of climate changes. He commented these are not unreasonable positions to take and noted the City cannot move ahead on these items unless they talk to MAA. Councilors Hartzell/Navickas m1s that no final agreements will be drafted with MAA on potential transfer of the the SUP until after the 9th Circuit Court rules on the expansion: in the interest of promoting negotiatons with MAA Council directs staff to hire, through sole source contracting if necessary, consultants to evaluate the restoration, and montioring costs and needs in the existing and exanded area: that staff define the mechanisims that could be used to secure the funding for restoration and monitoring by MAA and that staff discuss with MAA the formation of a Quality Control/Quality Assurance (QAlQc) Team that is independent, third party, has more than two people and involves the City of Ashland in selectiou. DISCUSSION: Councilor Hartzell stated her position regarding the importance of monitoring on behalf of the City in regards to restoration, and she commented bonding will not work if securing monies through negoiations. She questioned what other options are available and encouraged researching to flush out neogiations. Ms. Hartzell noted her understanding that the motion previously passed by Councilor Chapman was intended to transfer the SUP to MAA and that policy directions were not included. Her intent with the motion is to include policy and not to put staff in the middle. Councilor Silbiger agreed with a portion ofthe motion but did not agree with waiting until the decision by the 91h Circuit Court is made and questioned the legality of determining "sole sourcing" prior to a contract being issued. Councilor Navickas voiced his support for the motion and urged the council to look at the "big picture." He noted his concern with committing staff time on something that may not happen, as he does believe that the 91h Circuit Court ruing is relevent to this motion. Councilor Jackson stated she does not support the motion with the linkage to the 91h Circuit Court ruling. She does agree that the QAlQC Team is a good idea for the existing ski area, and stated she is not willing to commit dollars the City has not identified in the budget in order to have more experts address issues on the mountain. She reminded everyone that those who have worked on this project live in our area, and we should be respectful of their work. She felt the Council should restrict their discussion on what it means and what the conclusions are and is not interested in creating more sets of opinions. Councilor Hardesty voiced her concern about going into negotiations without having some idea of what the restoration costs would be and what an appropriate bond would be. She felt that in order to do this, the City would have to hire someone. Coucilor Jackson suggested that the City Administrator is capable of coming back to Council with any legal, technical or environmental advise. She suggested the Council consider scheduling a study session to discuss what is meant by these issues raised. Ms. Jackson stated her continued support of the previous Ashland City Council Meeting September 4. 2007 Page I () af II motion made by Councilor Chapman because it deals with the QA/QC Team and the Forest Service. and offers an updated definition of the watershed protection interests for the City. Councilor Navickas voiced his frustration with the amount of time that has been spent on this subject when the Council has so many other important issues on the table to deal with. Interim City Attorney Richard Appicello clarified, in regards to the proposed motion, that what the council needs to consider is a motion to rescind or to amend the previously adopted motion. He stated that because there has been no action taken on the previous motion, it it admissable for the Council to consider a motion to either rescind or amend. He understood that the motion proposed is a motion to amend. Councilor Hartzell clarified that that motion is to amend the motion previously made by Councilor Chapman. She stated that the intent of the motion is to replace the previous motion, not in its entirety, but to replace it in regards to the sequence of actions. Mr. Appicello confirmed that the Council could consider the proposed motion as an amendment. Ms. Bennett explained there was a verbal agreement between the City's counsel and MAA's counsel, that discussion between herself and Kim Clark would take place under sections of Oregon Law and would not be admissable in court. She stated this was prior to other things that have happened. Councilor Chapman stated he would prefer the City Administrator begin negotiations and if policy clarification was needed that she would come back to Council for direction. Councilor Hartzell clarified that the proposed motion directs the City Adminsitrator to begin negotiations with the QAlQC Team and could involve discussion on how to insure monies for restoration. In terms of the SUP, she felt there should be discussion but that there be no final agreement until after the ruling of 9th Circuit Court. Roll Call Vote: Councilors Hardesty, Navickas and Hartzell YES; Councilors Chapman, Jackson and Silbiger, NO; Mayor Morrison, NO. Motion failed 4-3. Councilor HartzelllNavickas m/s to rescind the decision of July 19'h to authorize the City Administrator to negotiate with MAA and US Forest Service to transfer the Special Use Permit. DISCUSSION: Councilor Hartzell explained that this is an attempt to take the Council back to the place where this can be discussed and that the motion passed has made some councilors feel like they are "up against the wall." She eXplained that it is not that there needs to be discussion but how it has been brought forward and the placement of authority to do the negotiation. She felt there is a lack of policy directive and supports a study session for further discussion by Council without having this motion in place. Councilor Hardesty stated this places the City Administrator in a difficult position and may not be the best language to use in order to accomplish this task. Councilor Jackson commented there could be no end on how the language is crafted. She stated that the intention ofthe motion is to include the SUP in the Council's discussion in order to obtain a variety of things that have not been available, along with additional things that discussion has not started on yet. She felt the Council needs to trust staff to get the Council as far as they can go and then to come back to the Council for direction. Councilor Navickas reminded the Council that MAA agreed twice to comply with the terms put forward. He feels the City is in a strong position by holding the SUP, and the City needs to stay firm in their position. Council continued discussing the merits of transferring or holding the SUP and how the City would move forward. Ashland C;ty Coundl Meeting September 4. 2007 Page II of II Roll Call Vote: Councilors Chapman,. Silbiger and Jackson, NO; Councilors Hardesty, Navickas and Hartzell, YES; Mayor Morrison, NO. Motion failed 4-3. NEW AND MISCELLANEOUS BUSINESS 1. Designation of Voting Delegate to LOC Annual Conference. 2. Schedule for Rates and Fees Review. Items not addressed due to time constraints. ORDINANCES. RESOLUTIONS AND CONTRACTS 1. Reading of a Resolution titled, "A Resolution Establishing the City of Ashland Citizen Advisory Ad Hoc Committee." 2. Second reading by title only of an Ordinance titled, "An Ordinance Amending the Ashland Municipal Code, Land Use Ordinance, Regarding Conversion of Existing Rentals Into For- Purchase Housing in Multi-Family Zoning Districts." 3. Second Reading by title only of an Ordinance titled, "An Ordinance Amending AMC 3.08.020 To Apply Ethics Provisions to Employees, Appointed Officials and Elected Officials." Items not addressed due to time constraints. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS Item not addressed due to time constraints. ADJOURNMENT Meeting was adjourned at 10:30 p.m. Barbara Christensen, City Recorder John W. Morrison, Mayor CITY OF ASHLAND ASHLAND HOUSING COMMISSION MINUTES JULY 26, 2007 CALL TO ORDER Vice Chair Carol Voisin called the meeting to order at 5:30 p.m. at the Community Development and Engineering Services Building, 51 Winburn Way, Ashland, OR 97520. Commissioners Present: SOU Liaison: Sunny Lindley, Absent Carol Voisin, Vice Chair Steve Hauck Council Liaison: Alice Hardesty, Absent RCl!ina Avars Bill Smith Staff Present:: Aaron Benjamin Brandon Goldman, Housing Specialist Absent Members: Sue Yates, Executive Secretary Richard Billin Bill Street APPROVAL OF MINUTES Hauck/Benjamin m/s to approve the minutes of the June 28, 2007 meeting. Voice Vote: Approved PUBLIC FORUM No one came forth to speak. Ayars said she talked with Eva Cooley, a citizen, who had some ideas about accessory residential units in Quiet Village in conjunction with weatherization. She thought it would increase the value of the homes and bring in additional revenue for families trying to buy homes. REPORTS AND UPDATES Subcommittee Report Education - No meeting/no report Finance - See Housing Trust Fund Development below. Land Use - They discussed: 1) Faith Street Tabernacle project and how it first came forward with multi-family units and then eventually came back with nine single family units. 2) Upgrading existing SOU owned homes for faculty members to purchase. 3) Clay Street Park Acquisition - Decided to go out for Request for Qualification to affordable housing providers. Liaison Reports Council Goals - Goldman said he forwarded the Housing Commission's priority goals along with a letter he wrote to the Council. Those goals included: 1) Establishment of a housing trust fund. 2) Looking at City owned property for employer-assisted housing for City employees. 3) Review changes to the annexation ordinance. The tinal Council goal list is included in this month's packet. Parks - No report. Schools - No report. Planning - No report. Triparlite - No report. HOUSING TRUST FUND DEVELOPMENT Goldman said the Finance subcommittee has taken the lead on developing the housing trust fund. There is a memo from Goldman to the Housing Commission in the packet outlining the work the Finance subcommittee has done. They are looking at a 20 month time line to establish a housing trust fund. The mission has been defined. Goldman reviewed each section of the memo with the Commission. He said the "Purpose" statement is broad and can be revised at a later date. The "Eligible Applicants" is meant to be broadly inclusive. ASHLAND HOUSING COMMISSION MINUTES JULY 26, 2007 Benjamin wondered if the "Eligible Applicants" section is responsive or proactive. With this generic framework. we'll have to wait for non-profits to come to us for funding. Or, are we going to go to them? He is inclined to keep the plan as flexible as possible. He would like, in anticipation of establishing the housing trust fund, to start asking the non-profits to start thinking about the projects they could do and what their needs will be in the next 18 months, before casting the housing trust fund in concrete. Ask them for a budget. Try to have two to three organizations in mind. Hauck agreed we need to invite the non- profits and ask them to participate and explain their funding needs in the near future perhaps in the format of a work session a public hearing. Goldman said we have a list of20 individuals that are interested (from the survey). Guidelines It's possible these could be prioritized. Goldman said the time line now is defining the uses. The next section is establishing an award process and further down the list is the selection criteria where a point value could be given to projects. The Commissioners discussed the item under Guidelines: "Developments that include affordable units for the disabled and the homeless." Smith felt this was an awfully broad statement and if we are trying to accomplish creation of affordable housing and workforce housing, this seems outside the scope of the housing trust fund and more like a social service. Benjamin is concerned the Guidelines attempt to do all things for all people. Voisin would like to keep the Guidelines broad and open and leave the statement in the Guidelines. Hauck believes housing is for the citizens of Ashland, whoever they are, though he would like to have priorities. He doesn't want to take something off the list only to find it is needed. Benjamin would like the Guidelines initially to be void of anything that would create political opposition. Eliqible Aclivilies What is capacity building? Hauck eXplained it is where an organization doesn't have the expertise available to do a specific part of the project. For example, someone might be needed with expertise in financing. Voisin said the Finance Committee wanted to prioritize everything that is directly related to increasing affordable housing, but including the others, just in case. Ayars thought that "Transitional and Emergency Housing" should add at the end of the sentence, "through an established program to move people toward self-sufficiency. Ayars asked if "Conservation of Energy" was a stretch. Goldman said the intention is that ifit is an affordable housing development that contains green technologies, that it would have a preference over one that did not. Conservation should be encouraged because it will lower the residents housing costs. The Finance subcommittee wanted the full commission to evaluate the work done so far on the housing trust fund and make a recommendation as to whether or not a special study session would be in order. The Commissioners were satisfied with the language with the few changes as noted above. Goldman will look at a time in early September for a special study session. CLAY STREET PARK AND AFFORDABLE HOUSING DEVELOPMENT Goldman reported the City property acquired a 2.3 acre parcel in 2006 with Parks funds. Of that, 14,000 square feet was peeled off (map in packet) that could be used for Work Force Housing. One hundred twenty five thousand dollars was put toward the purchase of that area from the future proceeds of Strawberry Lane. The property has not yet been subdivided. The housing provider will have to go through a subdivision process to create five lots for each of the units and one lot for their open space. The City is looking for a developer. The Land Use subcommittee talked about sending out a Request for Qualifications. Staff is recommending the Housing Commission direct them to write up the RFQ, to form an ad hoc review committee and appoint a Housing Commission member to the committee. Goldman has contacted the Parks Dept. about appointing a Parks Commissioner to the ad hoc review committee. The Parks Commission will review it and get back to Goldman. The Housing Commission would be the final decision-maker to make a recommendation to the Council. Hauck/Smith mls to direct Staff to develop an RFQ to send to affordable housing providers and initiate the formation of the ad hoc review committee. Voice Vote: Everyone favored the motion and it carried unanimously. Ayars and Hauck expressed an interest in serving on the ad hoc review committee. RENTAL NEEDS ANALYSIS REVIEW AND DISCUSSION At the last meeting the Housing Commission indicated they wanted an analysis of the Rental Needs Analysis. Questions have been raised by Planning Commissioners over the validity, strengths and weaknesses of the report, so the Housing Commission wanted an opporhll1ity to talk about it in more detail. Goldman said the Rental Needs Analysis can be viewed as a factual ASHLAND HOUSING COMMISSION MINUTES JULY 26, 2007 2 based document and the facts are limited because there is no comprehensive rental data collection entity in the Rogue Valley. That is not necessarily a failing of the Rental Needs Analysis, but a failing we are in a market that is not large enough to support a data collection service. Goldman summarized his memo dated July 26, 2007 regarding Rental Needs Analysis Review. Discussion Points o Medford has a rental registry (voluntary). There is a charge for it. The Fire Department would see a value because each unit would be delineated. o Cell phone research -- Recent research is showing only eight percent of the population has only a cell phone. The single largest group owning only a cell phone is the Baby Boomers. o The analysis could have been improved by better integrating the Buildable Lands Inventory information. o If the analysis has value, we need to be proactive about talking to the key people we want to influence. o This is the only data and survey information we have for the whole area. At least this is something on paper-more than a "gut" feeling. o Goldman's analysis answers some of the concerns that have been expressed. o Can it be tied to the condo conversion that this is a memo they should refer to before deciding on the condo conversion'? The memo will be forwarded to the Council in advance of the condo conversion hearing with a memo expressing the soundness in the Rental Needs Analysis and reaffirming the Housing Commission's support of the condo conversion. Hauck/Voisin m1s to reiterate their support for the condo conversion ordinance as written. Voice Vote: Unanimously approved. The condo conversion is scheduled for August 21st at the Council. Voisin, Smith, Ayars, Hauck and Benjamin all plan to attend the meeting. Street will not be there. FUTURE AGENDA ITEMS August Meeting.- Housing Commission Goals Land Use Ordinance Changes - Hope to bring to Land Use subcommittee - there are a couple of components that relate to housing. The PlalU1ing Commission public hearing is scheduled for September Illh. UPCOMING EVENTS AND MEETINGS Regular meeting - August 30th Special Study Session in September - Housing trust fund discussion Fair Housing Training geared to property owners and tenants - August 22nd, live on RVTV from the Medford Council Chambers. ADJOURNMENT - The meeting was adjourned at 7:25 p.m. Respectfully submitted by, Susan Yates, Executive Secretm}' ASHLAND HOUSING COMMISSION MINUTES JUL Y26, 2007 3 CITY OF ASHLAND ASHLAND PLANNING COMMISSION REGULAR MEETING AUGUST 14, 2007 MINUTES I. CALL TO ORDER - Chair John Stromberg called the meeting to order at 7:05 p.m. at the Ashland Civic Center, 1175 E. Main Street, Ashland, OR. Commissioners Present: John Stromberg, Chair Michael Dawkins Olcna Black Tom Oimitre John Fields Pam Marsh Dave Dotterrer Melanie Mindlin Mike Morris Absent Members: No absent members Council Liaison: Cate Hattzcll (Council Liaison, does not attend Planning Commission meetings in order to avoid conflict of interest.) Staff Present: Bill Molnar, Planning Manager Maria Harris, Senior Planner Richard Appicello, Acting City Attorney Sue Yates, Executive Secretary II. ANNOUNCEMENTS - There were no announcements. III. AGENDA APPROVAL - There agenda stands approved. IV. CONSENT AGENDA A. Minutes I. July 10,2007 Hearings Board (Dollerrer, Marsh, Dawkins) 2. July 10, 2007 Planning Commission Meeting 3. July 24,2007 Planning Commission Study Session B. Recommendation to Council re: Interchange 19 C. Attending Regional Problem Solving Meetings D. Public Hearing Procedures Dimitre/Dotterrer m/s to approve the consent agenda. The consent agenda stands approved. V. PUBLIC FORUM A. SUZANNE FREY, Oak Knoll Drive, Coordinator for Rogue Valley Green and Solar Tours, wanted to inspire the Planning Commissioners and promote the use of energy efficient conservation measures and said they can help lead by example. There will be solar tours on October 20th and 21 st. Her e-mail addressissfrev({vmind.net. VI. TYPE III PLANNING ACTIONS A. PLANNING ACTION: PA-2006-01663 SUBJECT PROPERTY: 87 W NEVADA ST 7 811 HELMAN ST. OWNER/APPLICANT: ASHLAND FLOWERSHOP & GREENHOUSES INC/GREG & VALRI WILLIAMS DESCRIPTION: A request for an Annexation, and Comprehensive Plan and Zoning Map change from Jackson County zoning RR-5 (Rural Residential) to City of Ashland zoning R-1-3.5 (Suburban Residential) and R-1 (Single-Family Residential) for an 11.64-acre site comprised of five parcels located at 87 W. Nevada St. and 811 Helman St. (Ashland Greenhouses). The Ashland Comprehensive Plan Map identifies the site for Single-Family Residential development (R-1 zoning). As a resu~, the proposal includes a Comprehensive Plan Map Change for approximately 42% of the site to modify the Single-Family Residential designation to the Suburban Residential (R-1-3.5 zoning) designation. The proposal requires Outline Plan approval to develop the property as a 68-unit residential development under the Performance Standards Options Chapter 18.88. A Physical Constraints Review Permit is requested to locate a multi-use path in the Ashland Creek Riparian Preservation Area. A Tree Removal Permit is requested to remove a 36-inch diameter at breast height Oak tree. Exceptions to the Street Standards are requested to install curbside sidewalks on both sides of one of the proposed streets (Sander Way), for not locating a street adjacent to natural features being Ashland Creek and to use a private drive to access the 24 cottages rather than the required public street. The application includes a land exchange with the City of Ashland. The proposal is to dedicate 2.42 acres adjacent of the Ashland Creek Riparian Area to the City for parks purposes in exchange for 1.37 acres of the Dog Park in the area of the access and to the south of the existing parking area. Site Visits/Ex Parte Contacts/Bias/Conflict of Interest- Staff conducted a site visit yesterday with the Commissioners. Commissioners Dotterrer, Morris, Marsh, Black, Dawkins and Fields were in attendance. Stromberg said the riparian borders looked tight along the creek, putting the path into the riparian area looked like it would cause disturbance to the area, the tree to be removed looks in bad shape, and he wondered if there was a landscape plan. Dotterrer saw the site visit as a general orientation. Marsh said the site visit was primarily about geographical bearings. Mindlin had a site visit today and noticed a large dead oak tree. Dimitre did not have a site visit. None of the Commissioners had any ex parte contacts. Challenqes/bias or conflict of interest There was a bias challenge directed at Pam Marsh by Art Bullock. ART BULLOCK, 791 Glendower, came forward to speak. He entered his written statement into the record. He asked Marsh to recuse herself because it would be impossible for her to be impartial according to the evidence he submitted. Marsh's Response: She said Bullock correctly quoted her. She had sent a private e-mail to a select group of people, one of whom accidentally placed it on the City's website and she found, to her dismay that once it is public record, it is there in perpetuity. She doesn't believe what she said has anything to do with personal bias or her ability to judge this application or any other application of which Bullock is a participant. She believes she can make a judgment based on the facts of the situation on this or any other application. Dimitre asked for Appicello's opinion. Appicello explained the standard for bias. Commissioners are not expected to be entirely free of any bias. Appicello read a statement asking Marsh if it is true that she has not pre-judged the application and is not prejudiced or biased by her prior context or involvement and will make the decision based solely on the application of the relevant criteria, standards, facts and evidence in the record oflhis proceeding. Marsh agreed, No one moved to recuse Marsh. The Commissioners were satisfied with Marsh's statement and moved forward. STAFF REPORT Harris reminded the Commissioners that at the July loth meeting they covered the description of the application and tonight Staff will be covering the project evaluation. The Planning Commissioners will be asked tonight to make a recommendation on the land use application with six land use approvals (Annexation, Comprehensive Plan and Zoning Map Change, Outline Plan, Exception to Street Standards, Physical Constraints Review Permit and Tree Removal Pennit). Secondly, a recommendation on the land exchange is needed. Harris covered the new plans that were submitted and explained the four concerns of Staff that the Planning Commission should discuss and decide if the approval criteria have been met. 1. Nevada Street Sidewalk. See Augnst 14, 2007 Staff Report, Page 5 - comments in box 2. Open Spaces - See August 14, 2007 Staff Report, Page 9 - comments in box. 3. Sander Way Sidewalks- See August 142007 Staff Report, Page 15 - comments in box. 4. Ashland Creek Riparian Corridor - See August 14,2007 Staff Report, Page 12 - comments in box. a. Buffer of the riparian corridor b. Impact of the multi-use path in the riparian corridor c. Protecting the wetland from the path construction If the Commission agrees with Staffs concerns regarding the riparian corridor, the multi-use path and/or the open space, Harris would suggest the Commission continue the application to allow the applicant to adjust their site plan. Harris believes conditions to address the Sander Way sidewalks or the Nevada Street sidewalk can be drafted if they choose to move forward and look at recommending approvaL Harris talked to the City's conservation staff and they felt if the applicants did all the measures on the perfonnance standard they submitted, they would easily exceed tbe Earth Advantage program. They did, however, suggest that they come back at Final Plan with a measurable system. The second sentence of Condition 26 could read: The final plan application shall include systems for measuring and monitoring compliance of the development with the performance standard that is administered by the applicants and verified with the City. They might be required to post a bond with the City and once they meet all the requirements, the bond would be returned to the applicant. Dotterrer said if the applicants are imposing the performance standard on themselves and it is not part of our ordinance, is there a reason we are discussing it? Marsh said we have decisions to make on a very complex set of land use decisions and an audience full ofa lot of people who are excited about this application and want to be a part of the energy efficiency that's promised in this kind of development. At what point in the land use decision-making process should we, if at any point, consider the kind of ASHLAND PLANNING COMMISSION REGULAR MEETING MINUTES AUGUST 14, 2007 2 development that is being proposed? Harris responded that the applicants are using the argument that with the proposed Comprehensive Plan change there is a need to adjust to new conditions; namely, energy saving homes. Harris suggested an added Condition 28: That the Final Plan submittal meets all fire apparatus access requirements. Dawkins wondered ifthere was a way to assure that the affordable housing component of the project will ever get built. Harris said Staff had suggested a timing mechanism and the applicants said that wouldn't work. He should ask the applicant. The standards are on Page 19 of the Staff Report. Dimitre asked about the circular drive. Harris said the applicants are asking for an exception to make it a private drive rather than a public street. The difference is the street width curb-to-curb would be 20 feet rather than 22 feet for a public street. The private drive allows them to do head-in parking so they can get much more parking and use curb side sidewalks. Staff feels it can work because it is hard to deal with access at that corner. PUBLIC HEARING - KERRY KENCAIRN, KenCairn Sager Landscape Architects, 545 A Street ALEX FORRESTER, Forrester & Forrester, 545 A Street CHRIS HEARN, 515 E. Main Street Forrester asked the Commission to consider a change to Condition 21 from "the" to "a" homeowner's association for the smalllots. Add to Condition 25; Each home footprint shall receive an equivalent certification by the project architects and mechanical engineers as the footprint is capable of meeting the requirements of net zero energy performance. In the applicant's submittal (green book #2) there is an extensive energy study done for the homes shown in the plan. This analysis would have to be done for each unit. There are no lot lines so they can't use the City's solar fence relative to the lot line so they have proposed that change as outlined in their submittal). There is not a sidewalk on the north side of Nevada because there is no development on that side. There are no homes in the city limits and Forrester doubts that any will be brought into the city so they don't see a need to extend that sidewalk. KenCairn said the two smaller open spaces in the townhome area were designed intentionally to relate to the private backyards of the townhomes. They envision them as small pocket park/playground areas, accessible without going through parking lots or without having any vehicle interaction between the kids and the playground. The other large open space area is at the other end of the townhome area; part of it is used for buffering from the street with plenty of room for lawn and a play area. The landscape plan is part of Outline Plan. They are about 3,580 square feet over their open space requirement. KenCairn explained that they meet or exceed the federal, state and currently local standards for riparian setbacks. Their top of bank is a minimum of35 feet from the path and up to 85 feet away. There is a huge buffer in the riparian zone, not really adjacent to the floodplain or creek. The floodplain is way down deep. They want to put the path in the riparian area to get people into that space to experience it, but not impact the riparian area, most of which is at the bottom of the creekway. The applicants believe enough buffer has been provided between the path and the riparian zone and the private use. It will look like this: Private use, ten foot landscaped area, fence, path, riparian zone that fluctuates between 35 and 80 feet from the centerline of the creek. The fence will follow the property line, but the path may move away from the fence in places. KenCairn said Sander Way is a skinny street. They are trying to maintain the solar aspect as much as possible, trying to meet all the city's setback standards, and trying to provide an ecological alternative for a neighborhood street so that people can see what it might be like to have a street that has bios wales and landscapes with enough space for them to move through the space. They can walk along it or in the street because Sander is not a main thoroughfare. Forrester explained with regard to assuring the affordable housing that they are proposing to donate the land and the infrastructure to the non-profit. Hearn said there is a contract agreement that is part of their submittal between RVCDC and the applicants as allowed by the criteria. Forrester explained that any proposals of the applicant become conditions of approval. They've added a condition that they will meet their own performance standard and they have to do it through a third party certification, such as Earth Advantage. The State of Oregon, Dept. of Energy (ODOE) has made the applicants one of three residential models that they want to put devices in the homes to measure their efficiencies, track the processes and materials, take videos, make this available to other contractors and developers. They have a memorandum of agreement with the ODOE. (Exhibit K-3). ASHLAND PLANNING COMMISSION REGULAR MEETING MINUTES AUGUST 14, 2007 3 Mindlin asked how to translate K-3 into a specific standard. What specific proposals does Forrester see as conditions of approval? Forrester they will go as far as they can with all the other non-energy related sustainable issues. They have shown in their check sheet all those items they would hke to meet. The industry is chauging so fast they are finding the Earth Advantage and LEED standards are fairly targeted to older methodologies so they don't want to restrict themselves so they can take advantage of the latest materials/information. Mindlin is concerned with the difference between "striving to" and "being required to." Forrester said they will meet net zero energy. Stromberg asked what the merits are to changing the R-l zoning to R-1-3.5 zoning and how it will benefit the community. Forrester said the R-I zone is the only way that they can get the affordable housing building type with the townhome and the workforce housing type with the smaller cottages. Forrester said if the multi-use path is moved over, it could kill the project because they would lose units. The Commission took a five minutes break. Stromberg opened the public hearing for PA2007-00980, Westwood-Strawberry, City of Ashland. DotterrerlDawkins m/s to continue this action to the September 11,2007 regular meeting. Voice Vote: Motion carried unanimously. Stromberg opened the public hearing for PA2007-00250, 281 Fourth Street, Glover (Mobius). Black/Fields m/s to continue this action to the September 11, 2007 regular meeting. Voice Vote: Motion carried unanimously. (Returned to PA2006-01663) Stromberg announced to the audience that this application does not change the parking lot or the dog park. STEVE SHEIN, 167 Church Street, filled out a Speaker Request form aud checked that he is in favor of the application but did not speak because he left the meeting. STEVEN JENSEN, 355 Otis Street, believes this is a good project and it meets all the criteria. DWIGHT BARBER, 540 Helman Street, asked if this project complies with the ordinance that was passed in 1997 moving the floodplain back to the 150 year floodplain. He does not believe a path in the riparian can act as a fence. No fence is going to stop someone from going over. He is concerned the applicants want to reduce the riparian to less than 50 feet. What will the construction impact be to restoration of salmon flow? He agreed with Staff's questioning some of the aspects of the project. DAVE BERNARD, 378 Terrace Street, beheves the planning process has gotten caught up in the minutiae and we'll overlook the big picture only to get lost in the gray areas. This is a great project for Ashland. Leaders find a way to look at the big picture. TOM WINMILL, 200 Normal, concurred with Bernard. This project is trying to move into the 21" Century and yet still trying to meet all standards and requirements. It would be a credit to the City of Ashland to see a project this environmentally sensitive fit into those standard and can become a model for other projects in town. DON DOLAN, 160 Orange Avenue, came because of propaganda that was passed out concerning the property exchange. He is concerned about the riparian area that it doesn't seem to allow for the creek to move. WANDA NELSEN, 1325 Prospect Street, filled out a Speaker Request form and checked that she is in favor of the application, however, she left the meeting before speaking. JOHN WHEELER, 2430 Greenbrook Drive, representing, Director of Acquisitions and Construction, Rogue Valley Community Development Corporation (RVCDC) said if this project is approved, RVCDC will be the recipients of a land donation to build 15 green sustainable affordable homes in the next two years. The homes will be held in a land trust for 99 years. They will use a Mutual Self-Help model. To ensure the homes will be built in a timely manner, he is sure they would be amenable to doing whatever it takes to make this work. CLAIRE KRULlKOWSKI, 228 Talent Avenue, Talent, OR 97540, said she is concerned about the impact of the dog park and surrounding community in terms of increased traffic. It ifhas to be moved and if moving the path along the riparian would kill the project that is of concern to her. Could it be a great project but the wrong location? Her third concern ASHLAND PLANNING COMMISSION REGULAR MEETING MINUTES AUGUST 14, 2007 4 is that no real estate is selling and people are not buying lots in advance. MIKE DADAOS, 2120 E. Main Street, filled out a Speaker Request Form aud checked that he is in favor of the application, however, before he could speak, he left the meeting. PAUL SAFADY, 580 Helman Street, spoke to the safety issues. The speed bumps on Oak Street have brought more heavy truck traffic to Helman. The bike path and dog park have brought a lot of bike and auto traffic. These things, in combination with a grade school make it seem unsafe to add more people to the area. MICHAEL GIBBS, 536 Ashland Street, said this is a forward looking project. The proposed path along the riparian area seems a lot like Lithia Park with the path close to the creek. He urged the Commission to move this forward. Dofforrer/Black mls to extend the meeting to 10.'00 p.m. Voice Vote: Approved. LAURIE GIBBS, 536 Ashland Street, believes the Williams' have shown amazing stewardship in this project and going the extra mile. This is a wonderful opportunity for us to see affordable housing going into this project. PENELOPE MARTENS, 917 Bellview Avenue, #1, agreed with Tom Winmill, Dave Bernard, John Wheeler and Laurie Gibbs. Her biological clock is ticking and she would hope to see this built in the near future. . JOHN ENGELHARDT, 656 Helman Street, stated that it is better to have a standard size street leading to the dog park. The project is a bonus that incorporates a substantially reduced energy footprint. The land exchange is a credit to the developer's generosity and a good deal for the City. He fully supports the project. SAMANTHA BRADLEY, 700 Helman Street, read a statement from her mother SUSAN. The statement was entered into the record. Susan opposes the project. She is concerned about additional traffic on Helman. With regard to energy conservation, there is a big difference between zero net energy "ready" and zero net energy. The development is either really green or it isn't. There is no middle ground. MIKE GARDINER, 349 Orange Avenue, favors this action and would encourage the Commission to recommend the application to the Council. He is also in favor of the annexation. The land exchange makes sense and is good for the Parks and Open Space program. BILL DAVIES, 1264 Orchid, asked if the existing dog park would be encroached upon by this development. Harris said "no," the fenced area, the parking and the restrooms will remain. The following individuals filled out Speaker Request Forms but left the meeting before speaking. Stromberg read their comments in support of the project into the record: RISA BUCK, Oak Street PAM LOTT, Oak Street JESSE HENWIT, 458 Beach Street JOAN THORNDIKE,369 Granite Street BECKI BERNARD, 293 Meadow Drive TANYA DADAOS, 2120 E. Main Street MARY GARDINER, 348 Orange Avenue COLIN SWALES, 461 Allison Street, was in attendance at the last meeting but no testimony was taken. His Speaker Request Form indicates he is "on the fence." RON ROTH, 6950 Old Hwy. 99 South, supports the project. With regard to the riparian area, The Williams' property did not flood in 1997 because it is on the high side of the creek. He does not see a problem with having a path in a riparian corridor. He sees this project as an opportunity to build some affordable and workforce housing. ART BULLOCK, 791 Glendower, said the record says the developer will be striving to meet the standards under economic feasibility limits. Is there a requirement to meet self-imposed performance standards? It is under contract and the contract requires consideration for all the changes that are occurring to the project. In order to accommodate the change in the Comprehensive Plan and satisfy the requirements for the energy effectiveness, it is important to have the performance standards in the development agreement in a measurable way. The annexation criteria do not appear to have been met. The private driveway is a way to have a ASHLAND PLANNING COMMISSION REGULAR MEETING MINUTES AUGUST 14, 2007 5 city street without having to meet the requirements of a city street. There is not enough information in the record to support an Exception. Similarly for Sander Way, there is no unusual condition specified other than that's the way it has been designed. The Nevada Street sidewalk requirement has not been met either. l8.106.030.E.3 needs to be met. REBUTTAL Hearn explained again that the development agreement was meant to be a draft and it will be revised to reflect what has been said. The project criteria are difficult to fully address and need some flexibility on the part of the Commission. Forrester said the traffic study shows that Oak, Nevada and Helman will still function at acceptable levels even after the proposed development is built. The UGB is defined as "urbanizable" and can be developed with residential housing. He believes there is enough information in the record to address Bullock's concerns. The performance standards will be included in the development agreement. Black! Dawkins mls to extend Ihe meeting to 10:30 p.m. Voice Vote: Approved. Marsh asked there was a condition that could ensure the affordable housing is built. Appicello said they can add language to the development agreement. COMMISSIONERS' DISCUSSION AND MOTION Fieldsl Morris m/s to close the public hearing and move to deliberation. Roll Call: Unanimously approved. Dotterrer asked for a better understanding of the development agreement. Appicello explained it is like a suitcase that holds all the other pieces - the land exchange, the findings for Outline Plan, the findings on the Comp Plan amendment, the annexation, and conditions of approval. It is a mechanism that has to be approved by ordinance by the City Council. Appicello said the primary finding the Commission makes on a development agreement is: Is this proposed development consistent with the land development regulation of the City? Marsh asked if the multi-use path has to be ten feet wide. Harris said the Street Standards say that multi-use paths have to be six to ten feet wide. She would recommend ten feet to allow for a comfortable two-way traffic. Marsh asked what kind of information would be needed from the applicant to address the impact of building the path on the riparian area. Harris said there is no assessment in the application eXplaining what the impacts are. Condition 15 has been added to come up with a mitigation and implementation plan. Molnar added as part of the Condition, require showing treatment of the ten foot buffer area. Ifit is part of the private yard area, maybe it would best in natives rather than lawn or decking. Stromberg asked Harris about her four concerns mentioned during her Staff Report presentation. Harris said she believes there are items that were brought up that are still relevant. As Molnar said, it is a balance between the two competing areas. Harris continued that the Performance Standards Ordinance require the applicants identify and preserve natural resources adequately. The path requires a Physical Constraints Review Permit. One of the criteria specifically says: That the application has to demonstrate that all reasonable steps to reduce the adverse impact on the environment have been taken. The application does not walk through that. Or, maybe the Commission has heard enough testimony to make that decision. Dimitre/Morris m/s to continue the meeting to September 11, 2007 at the regular meeting. Fields said he would rather have a discussion about the riparian in this application before the wetland ordinance discussion comes up and we see exactly how we want it to be. Roll Call: Mindlin, Fields, Dawkins, Stromberg, Dotterrer and Black voted "no" and Marsh, Dimitre, Morris voted "yes". The motion failed Fields/Dawkins m/s to continue the action until the first item on the August 28, 2007 at 7:00 p.m. Roll Call: The motion carried unanimously. VII. ADJOURNMENT - The meeting was adjourned at 10:35 p.m. Respectfully submitted by, Sue Yates, Executive Secretary ASHLAND PLANNING COMMISSION REGULAR MEETING MINUTES AUGUST 14, 2007 6 CITY OF ASHLAND ASHLAND PLANNING COMMISSION CONTINUATION OF AUGUST 14, 2007 REGULAR MEETING MINUTES AUGUST 28, 2007 CALL TO ORDER The meeting was called to order by Chair John Stromberg at 7:05 p.m. at the Ashland Civic Center, 1175 E. Main Street, Ashland, OR. Commissioners Present: John Stromberg, Chair Michael Dawkins Olena Black Tom Dimitrc John Fields Pam Marsh Mike Morris Dave Dotterrcr Melanie Mindlin Absent Members: No absent members Council Liaison: Cate Hartzell (Council Liaison, does not attend Planning Commission meetings in order to avoid conflict of interest.) Staff Present: David Stalheim, Community Development Director Bill Molnar, Planning Manager Maria Harris, Senior Planner Sue Yates, Executive Secretary ANNOUNCEMENTS Planning Commission Roles and Responsibilities Update - Stromberg and Dotlerrer presented the Roles and Responsibilities to the Council and engaged in a lengthy discussion with them. Dotterrer will be talking to the Mayor next week about the next steps. He will also meet with each Council member to get their input. Ifthere are any substantive changes, Dotterrer will bring them back to the Commission. Planning Commission Goals - Stromberg said this item will be on an agenda this fall to talk about where we are with items that some members wanted to see on the list. He'd like to discuss the Planning Commission goals with the Council with the idea that they will receive the goals in sufficient time to work their own goals out before the budget cycle starts next year. Economic Opportunities Analysis - A public hearing is scheduled for tonight's meeting, but it is doubtful they will get to it. DotterrerlBlack m/s to continue the Economic Opportunities Analysis to the October 9, 2007 Regular Planning Commission meeting. Voice Vote: Approved. TYPE III PUBLIC HEARING (Continued from August 14, 2007 Regular Planning Commission meeting. The public hearing has been closed.) PLANNING ACTION: PA-2006-01663 SUBJECT PROPERTY: 87 W NEVADA ST 7 811 HELMAN ST. OWNER/APPLICANT: ASHLAND FLOWERSHOP & GREENHOUSES INC/GREG & VALRI WILLIAMS DESCRIPTION: A request for an Annexation, and Comprehensive Plan and Zoning Map change from Jackson County zoning RR-5 (Rural Residential) to City of Ashland zoning R-1-3.5 (Suburban Residential) and R-1 (Single.Family Residential) for an 11.64-acre site comprised of five parcels located at 87 W. Nevada SI. and 811 Helman SI. (Ashland Greenhouses). Site Visits/Ex Parte Contacts/Bias/Conflict of Interest - None was reported. Stromberg handed out a Verde Village Deliberations paper he hoped might assist in organizing the issues and decisions on this action. Mindlin had 2 additional concerns: I) Solar access standards (relates to camp plan map change), and 2) the applicant's energy efficiency sustainable development performance standards (the applicant's Exhibit K-3) (relates to comp plan map change). Dorterrer would like a review of the five criteria related to the comp plan 1. Annexation Does the island argument work? Harris said the applicants are asserting that when the western portion of the property is annexed, this will leave the eastern portion of the development as an island (H.6 of the annexation criteria). The Commissioners generally agreed with this argument. ASHLAND PLANNING COMMISSION 1 CONTINUATION OF AUGUST 14, 2007 REGULAR MEETING MINUTES AUGUST 28, 2007 Nevada Street sidewalk, north side?Harris explained that annexation criteria E.3 states that sidewalks shall be provided as required...within the annexed area. Where the project site is within a quarter of a mile of an existing sidewalk system, the sidewalks for the project site shall be constructed to extend and COlliect to the existing system. Harris said Oak Street has a sidewalk system from Nevada to Downtown. This project site is within a quarter mile of that sidewalk system. Pedestrians could cross at the new intersection of Almeda/HelmanlNevada to the south side and get to Oak Street, or the Commission can require a sidewalk be installed from the eastern boundary of the project to the intersection of Oak Street on the north side of the street. On the north side of the street, there will be a cOlliection to a new multi-use path that would help facilitate pedestrian travel so pedestrians would not cross mid-block or back track. However, there is a grade issue and it is not clear if a city standard sidewalk could be installed. Fields believes this is a good time to make the sidewalk improvements on the north side because it will fit in well with the ten year plan that would include the Nevada Street creek crossing. He added that he has less concern about the sidewalk being non-conforming than not having the connection at all. Marsh agreed, stating that transportation is an issue when putting this many people in the perimeter of the City. We really need to emphasize the way people walk, bike, etc. The Nevada Bridge will happen some day so we absolutely need the sidewalk link. Dotterrer agreed, adding that he would be comfortable allowing the applicant to work with Staff on the sidewalk design. Harris referred to her cover memo (8/21/2007), page 2, Condition 39. The Commission was in general agreement with the Condition. Dimitre, in looking at the Verde Village Deliberations, felt concern that we were changing the comp plan and then doing an annexation. It seems like that was not the intent. Marsh said it is difficult to deliberate in such a linear fashion and perhaps it would be better to look at the whole package at the end before voting. All the decisions are intertwined. Mindlin added another concern she had about open space to the list as item #8. 2. Comp Plan Map Change Does the conservation housing meet a public need that is supported by the Comprehensive Plan? Harris referred to the draft approval Findings, page 5, outlining the five standards that have to be met (18.108.060.l.a.-e. The applicant argued that the Comp Plan Map change is justified pertaining to a. (change implements a public need) and b. (change in circumstances), and c. (circumstances relating to public welfare exist) and d. Fields believes the applicants meet the affordable housing criteria, but Marsh said the affordable housing is required for the annexation. Stromberg believes the applicants meet b. because the change in circumstances relates to global warming, sustainability, etc. and he thought the conservation housing would address it because it is being more efficient in their use of energy. Harris said the draft findings address a. The Comp Plan Energy Chapter has a lot of policies that speak to energy and water conservation housing. It seems the makers of the Comp Plan were thinking of that 20 years ago when they wrote it, so the need to adjust to new conditions was captured in the Camp Plan when it was written. She thought either a. or d. could be supported. Harris referred to Condition 26 on page 22 of the draft approval Findings that would require systems for measuring and monitoring compliance of the development with the applicants' Performance Standards and requiring the applicant to post a performance bond or comparable monetary agreement to guarantee all residential units meet the "Net Zero Energy" Performance Standard. "Net Zero Energy" is a way of referring to the applicants' Exhibit K-3. Mindlin said they started out considering their Net Zero Energy for rationale to approve this project. She wants to hold onto a certain standard, however it seems some Commissioners would approve the application with or without Net Zero Energy. She thinks the applicants have proposed things and she wants to make sure it is clear - as an expansion of Condition I, that all proposals of the applicant are conditions of approval. Mindlin provided a list of items that she extracted from the application that are proposals of the application. Her items are as follows: 1. Number of Bedrooms. That the final plan and building permits shall conform to applicant's list currently found on page 19, lteml5, "Number of Bedrooms by Housing Type" in the Revised Outline Plan. Staff Response: This is covered under the parking calculations. 2. That the size of cottages shall range from 800 to 1200 square feet, including lofts and shall not exceed 1200 square feet. Staff Response: The size is captured in their application. 3. That the cottages shall be limited in height to 20 feet. Staff Respanse: At the last meeting. the applicants said the cottages would be 19 feet in height. 4. That Earth Advantage certification shall be obtained on all units that are not part of the project given to the low- income non-profit. Staff Response: The application states they will do 48 units. This would change the number oj affordable units to 53. 5. That the homes shall obtain at least 100 points in each Earth Advantage category. (Applicant has submitted Earth Advantage reviews, stating they have 108-165 points in each category. Some flexibility is needed in coming up with ASHLAND PLANNING COMMISSION CONTINUATION OF AUGUST 14,2007 REGULAR MEETING MINUTES AUGUST 28, 2007 2 final Earth Advantage programs, but a 100 point requirement would be well below that proposed by the applicants.) Staff Response: The applicants' appendices show they w;{J far exceed the minimum number of points which is 50 in each afthe fiJUr categories. 6. That the homes shall be shown to use 50 percent less energy than an equivalent code compliant home before its active energy producing systems are added. Staff Rnponse: This is in their Performance Standard. "Active energy producin~ systems" is a new component. 7. That by the time of Certificate of Occupancy, each home shall have a set of energy systems installed which are certified by the architect or other qualified professional to have Net Zero Energy capability. Staff Response: Harris doesn't know if Net Zero Energy capability is measurahle. Harris added that some of these items are stated in the application, some are not clear and some of the documentation is inconsistent. Fields believes K-3 is sufficient for meeting the criteria. He believes it is clear and we either support the concept or not. Earth Advantage is too complex and irrelevant to deal with at the Planning Commission level. Dotterrer asked if the COnmllssion should approve the Camp Plan Map change with or without Mindlin's changes. He believes it can be approved without. Marsh said under K-3, homes will meet or exceed Earth Advantage requirements. Harris said in the latest submittals by the applicants where they are answering questions by the Planning Commission, the applicants indicate "some" can meet an average of 150 points per category, three times the certification minimum. Solar Access - Harris referred to Condition 25 on page 22 of the draft approval Findings that addresses the solar setback. Outline Plan requires all homes meet Solar Setback A. The applicants have proposed some language about coming up with their own solar standard, however, does would that meet the City's solar setback language? The applicant's language is more flexible. Staff added language in Condition 25 as a way to compromise on this issue, "...or that each home shall receive an equivalent certification by the project architects and mechanical engineers that the shadow height on the southern facing exposures will not exceed that allowed under Solar Setback A." She believes they can extrapolate their information into our yardstick. Fields said we are looking at a strategy dealing with unusual lot sizes, unusual sized houses and an unusual arrangement. They are trying to have super energy housing. There is compromise involved. The solar standard can limit design. The applicants are putting a lot into the physical design of the project. He had heard from the applicants that sticking with a strict Solar Setback A would kill the project. Harris said the applicants wrote findings for a Variance. Mindlin is concerned because the energy standard the applicants are setting has a really strong focus on active systems and a rather low emphasis on passive systems. Harris agreed that the applicants are not completely addressing passive solar which is part of what the City's Solar Setback A focuses on. It's more about the windows and the collection potential. Mindlin said it's because the project doesn't have true lot lines that's the problem. She proposed a standard based on building code and Earth Advantage standards that wonld work well: "That each unit has at least eight percent of floor area and south facing glazing that is free of shadowing between the hours of 10 a.m. and 3 p.m. on December 21"." 3. Exception to Street Standards Cottage private drive - Most of the Commissioners agreed the private drive would be acceptable, however, Dimitre questioned the width of the drive and ifit is an equal or superior transportation facility. Path in the riparian corridor instead of street adjacent to riparian corridor - Harris said the two things that dictate how the streets will run are the main sewer line and lining up the new section of Almeda with Helman. It would be awkward to run Sander along the creek. She thinks it can be found that the path performs the function of separation adequately. The standard specifically says the reason is to provide a visual and physical access to the natural feature and also serve as a barrier between individual parcels and the natural feature. Dimitre believes one of the problems by the creek is that the setbacks might not be enough from top of bank. Ifthere was a street, you wouldn't have any residential backyards backing up to the creek. Dotterrer said they still have an equal or superior transportation access to the homes. Mindlin believes they are providing a superior transportation facility because there will be access to homes along with the path for bikes and pedestrians. Dawkins is concerned that the fence will wall off the corridor. Black is bothered that a street next to the creek could create runoff into a riparian corridor is not a good idea. Sander Way Curbside Sidewalks - Harris said the applicants don't spell out the first criteria that there is demonstrable difficulty in meeting the street standards. The application requests the sidewalks be curbside along the seven foot parkrow to mix with ASHLAND PLANNING COMMISSION CONTINUATION OF AUGUST 14, 2007 REGULAR MEETING MINUTES AUGUST 28, 2007 3 the constructed treatment wetland creating more natural and spacious treatment adjoining the residences. In last month's testimony, the applicant said there is not enough room between the curb and the sidewalk to have the bios wale landscape materials mix well together, but they didn't give any technical reason why. Harris said the main issue is the equal or superior transportation facility. In the Street Standards adopted in 1989, there was a specific policy decision made that streets will be relatively narrow and they will be traditionally designed with parkrows with street trees between the curb and sidewalk. The applicants haven't given any reasons as to why this is the only way to do the bioswales. Where is the balancing point between the design of the street and the transportation function versus an environmental street? Harris believes you can do both and this is being posed in a narrow way. She referred the Commissioners to Exhibit EE, Sheet 2, Book 3, Narrative that shows the cross section. Dotterrer cannot see that this meets any of the criteria. Mindlin would like more justification for doing what they want to do. Morris said he has an issue with sidewalks next to the street - driveway aprons across the street end up with a flat sidewalk and a slope to the street. Fields believes it is self-imposed. The Commissioners took a short break. Marsh snggested a condition that applies to the affordable housing that would remand affordable housing land to the City if it is not actually constructed or partially constructed over a period of time. 4. Location (or impact) of the Multi-Use Path - Does it meet the Physical Constraints Review Permit approval criteria? Specifically, has the applicant taken all reasonable steps to reduce the adverse impact on the environment? Does Condition 15 on the mitigation plan address minimization of adverse impacts? Harris said this item can be found on Page 7 of the draft Findings. If you locate a development that includes a path in a riparian preservation area, a Physical Constraints Review Permit is required (Chapter 18.62). Staff has questioned whether the application had addressed criteria 3. Harris understood the applicant's representative to say at the last meeting that they believe they had taken all reasonable steps to reduce the adverse impact by moving the path as far as they could to the western uphill edge of the riparian corridor and also working with the topography trying to go as much with the contours when building the path as possible. Staff had drafted a mitigation Condition 15, if the Commission is looking at approving it and it includes more specifics like doing vegetation and restoration as follows: For every square foot of disturbance they do, they have to restore 1.5 square feet. The mitigation plan would be reviewed at Final Plan. Black felt the applicants were making a conscientious effort to minimize the impact and they have had several engineering and environmental reports and it seems anything should be an improvement compared to the degradation that has happened to it over time. Marsh does not believe the applicants have satisfied the criteria. They haven't provided much information about the impact of building the path on the functions of the riparian area. However, in placing the mitigation on them, they will be forced to reduce the adverse impacts. She is not always comfortable placing things within the riparian area, but she thinks there is a case to be made for a multi-purpose path - that trade-off between protecting the path and providing recreational and educational options for people who are using the path. 5. Riparian Corridor Buffer - Is the proposal adequate? Are the significant and natural features adequately addressed and located in an un buildable area? Harris said this falls under the Outline Plan criteria and the question becomes: Are you protected enough? Fields said we are asking to do a trade-off and there are enviromnental impacts with anything. Our standard doesn't say how much buffer should be left, so we have to weigh and balance the whole thing. There is definitely impact - weigh human needs with no impact to the environment. Mindlin sees the multi-use path performing many functions. It buffers development from the natural feature, at the same time providing public access for the enjoyment of the natural feature. What is happening along the path and how one would be experiencing it? What does the path look like in terms of the area we need for it and how close the homes are to it? Dawkins expressed his concerns about the fence (it's 30 to 42 inches) and how it feels more natural without a fence. He would like as little disturbance as possible. He finds Condition 15 acceptable. Black likes the fence as a boundary, because it is not so tall that the homeowners cannot see the creek across it and it allows the users of the path to see the backyards of the homeowners. Morris believes the fence will keep the yards from encroaching down the bank. He is trying to weigh the four foot walls where the path is cut down to the bank that will require rails and having a fence on the wall side too. He finds the distance on the riparian area is adequate. They are quite a distance from the creek. Harris said one thing not captured in their drawings is that the Street Standards require a two to four foot buffer as a refuge area on each side of the path. If Morris is concerned about it feeling too tight, the two foot strips on each side should help in case there is too much traffic. ASHLAND PLANNING COMMISSION CONTINUATION OF AUGUST 14, 2007 REGULAR MEETING MINUTES AUGUST 28, 2007 4 Where is the path going to expand? The application sliows the ten foot wide path but has not shown the full width of the improvement and it is not explicitly stated that as that design gets finalized that it stays on the public property, but a condition can be added to keep the path on public property. Stalheim said the legal description for the land exchange has not yet been 'Nfitten. The question is if the path needs to be wider, which direction does it need to go - nearer the private property or nearer the riparian area? Dotterrer does not want to see any less than a ten foot buffer to the houses. Harris read language concerning the ten foot buffer area in the setback (common area). lfit's truly a riparian buffer area, the language could read: "That the ten foot wide conunon area between the new eastern property line adjacent to the Ashland Creek Riparian Corridor and the single family homes and yards for units 68 and 25-39 shall be landscaped with local plant species including ground cover, shrubs and shade trees to provide a riparian corridor buffer. The Final Plan application material shall include a species and size specific landscape plan for the ten foot wide buffer." Marsh is uncomfortable with the whole issue because we are understating the issue of the buffer. She is concerned we are on the verge of approving something that may fail our own standards once we get them in place. However, in the last Staff Report it was noted that the City of Portland recommends a buffer of 50 to 300 feet. We are talking about a ten foot buffer in this project. If we decide to go in that direction, we need to provide the utmost mitigation for the minimal buffer. One reason she believes we are having trouble with this is that the houses can't be moved toward the street because of setback issue Harris explained that our Performance Standard Options don't have standard yards. The perimeter of the development has to meet the underlying standards of the zone. The front yards have to meet setback. If there was more flexibility, they could push the houses closer to Sander Way (as tied to the buffer). Fields/Mindlin m/s to continue the meeting until 10:00 p.rn. Voice Vote: Approved. Stalheim suggested integrating at Final Plan the mitigation plan for impact of construction, the multi-use path, the riparian corridor and the ten foot setback buffer area. The setback would function not just as a setback but as a buffer. Have a biologist see if there is a need for trees or a canopy to overhang the pathway and other issues a biologist would look at to address the buffering issue. We would have to re-write some of the restoration items. Dawkins/Black m/s to extend the meeting to 10:30 p.m. Voice Vote: Approved. 6. Wetland Buffer - Does Condition 38 adequately address the issue? This has to do with what is being done to protect the wetland continuing around to the dog park during construction of the project and the path. Harris said Condition 38 says "That five feet shall be maintained between the northern edge of the path including the base materials and the wetland and also during construction the wetland be protected. On the plan, it looks closer than five feet in some places. Fields asked if we are talking about a five foot buffer from the two foot buffer or a 14 foot section. It looks like a property line might have to move to stay five feet from the wetland. Harris said it would depend on the grade. If it is relatively flat there, it makes sense to have the two foot refuge area and the path buffer be one in the same. Molnar said this is definitely a Final Plan detail. 7. Land Exchange - Recommend approval or denial? Staff recommended the Commission decide if the land exchange (grassy area by the dog park for the riparian by the creek) will benefit the city. The Commissioners agreed this is a fair exchange and the multi- use path is much better than an open grassy area. 8. Open Space - Will the open space areas be exclusive to and the responsibility of each area of development or will it be available to all the owners? Harris said the applicants have demonstrated for each section of the development there is more than eight percent dedicated open space and they are proposing separate homeowners' associations for all three sections. Marsh suggested the Commission endorse Condition 40 in the Staff memo relating to open space, AND insert a clause that shall address the usability, including community access to all of the open spaces. For the three sections of the neighborhood that there is something in each of the CC&R's that allow reciprocal visitation agreements, playground and community garden access. The Commissioners discussed whether or not the individual lots (65-68) should be included in the agreement. DOllerrer recommended all four lots should be made part of the homeowners' association because they will probably use the open space and the ten foot setback on Lot 68 will have to be maintained by the homeowners' association or by the owner of Lot 68. ASHLAND PLANNING COMMISSION CONTINUATION OF AUGUST 14, 2007 REGULAR MEETING MINUTES AUGUST 28, 2007 5 Marsh would like a Condition or as part of the development agreement the following: "That the land being dedicated to affordable housing, ifnot fully constructed by some date in the future, would revert to City ownership" COMMISSIONERS' DECISION Annexation - Dolterrer/Black m/s to recommend approval of the annexation, including Condition 39 requiring the sidewalk be installed on the north side of Nevada Street. Roll Call: The motion carried with Dawkins, Dolterrer, Marsh, Morris, Fields, Black, Stromberg and Mindlin voting "yes" and Dimitre voting "no." Harris reiterated the following changes in Conditions based on the Commissioners' discussion. -Add the sidewalk on the north side of Nevada Street to Condition 39 of the cover memo. -Add a new Condition regarding the multi-use path to maintain the ten foot setback from the property line, the buffer area, and if the buffer area has to expand, move it to the east. -Add Condition 40 from the cover memo asking the applicant to show at Final Plan the usability of the open spaces. -Combine Condition 15 and language about the buffer area as part of a riparian biologist looking at an integrated plan. -Add a sentence to Condition 33 that the land that is being dedicated for affordable housing shall be dedicated to the City if not fully developed in accordance with this approved plan within five years. -Condition 38 - That a minimum of five feet shall be maintained between the northern pavement edge of the multi-use path to the wetland area. -Strike the last sentence in Condition 26. -Condition 25 - To give the applicant more flexibility, the Commissioners agreed to allow them to address how they can meet Solar A at Final Plan. -Condition 21 - Members of the homeowners' association have reciprocal rights to the open space. -Condition 37 requires the applicant to meet the standard for Sander Way. Dolterrer/Fields m/s to approve PA2006-01663 with the Conditions presented and amended Conditions as discussed above. Roll Call: Mindlin, Marsh, Fields, Dawkins, Stromberg, Dolterrer, Morris and Black voted "yes" and Dimitre voted "no." The motion carried. OTHER - The second draft of the Land Use Ordinance amendments were handed out. ADJOURNMENT - The meeting was adjourned at 10:30 p.m. Respectfully submiffed by, Sue Yates, Executive Secretary ASHLAND PLANNING COMMISSION CONTINUATION OF AUGUST 14, 2007 REGULAR MEETING MINUTES AUGUST 28, 2007 6 Members Present: Staff Present: Members Absent: Ashland Traffic Safety Commission Minutes July 26, 2007 Patti Busse, Alan Bender, Matt Warshawsky, Kate Jackson Jim Olson, Nancy Slocum, Officer Steve MacClennan Doris Mannion, Colin Swales, Terry Doyle 1. CALL TO ORDER - 7:04 PM APPROVAL OF MINUTES: June 26, 2007 minutes were approved as submitted. II. ITEMS FOR DISCUSSION: A. PUBLIC FORUM ITEMS: Officer MacClennan reported that he received a request for additional 25 mph signs (in both directions) for lower Park Street. Olson said this request did not need to go before the Commission. He would talk to the Street Department about additional signage. Michael Dawkins, Ashland Planning Commission, asked the commission to reinstate pedestrian crossing stings. He walks and bikes often and thought the stings made people more aware. He thought the crosswalk in front of the library and at Sherman and East Main were particularly problematic. MacClennan and Warshawsky noted that many officers were needed to run a sting operation. Lemhouse suggested the Ashland police department contact the sheriff's department or Medford's traffic team for assistance. Olson said in the past stings were financed through grant money. B. REVIEW OF TRAFFIC REQUESTS / PROJECTS PENDING/ACTION REQUIRED 1. Proposed Parking Prohibition on Faith Avenue Near Siskiyou Boulevard As several neighbors were present to speak to this issue Chair Warshawsky shifted this item to the top of the agenda. Staff liaison Jim Olson presented the staff report. Olson noted that he has received several requests for various parking prohibitions on Faith. Faith Avenue is a straight 32' wide street. The slope increases from 4 to 10% as cars approach the intersection of Siskiyou. There are a few intermittent sidewalks. At present, the intersection at Faith and Siskiyou seemed to be the biggest concern . Olson shared an email communication from Housing Specialist Brandon Goldman. He reminded Olson that one of the conditions of approval for the 9 unit project at 2001 Siskiyou (at Faith) was one on- street parking space. Prohibiting parking in front of that project would make the project out of compliance. Olson also reviewed letters from Greg and Elizabeth Jones (641 Faith) and Joanie Keller- Hand (6S2 Faith) noting Faith as a popular thoroughfare between Siskiyou and Ashland Street. Staff recommended that parking be prohibited on both sides for a total distance of 55 feet. Public Comment: Liz King, 791 Faith, agreed that something should be done at this intersection, but at the opposite end of Faith as well. With parking on both sides of the street and no sidewalks, it is difficult for here to safely walk her dog. In addition, a large truck often parks near the corner by the Faith Tabernacle further blocking vision. She agreed that Faith Avenue was a common corridor between Ashland Street and Siskiyou Boulevard. Warshawsky asked Olson if there would be a planned change at the intersection due to the current Siskiyou project. Olson said no. Crosswalks were requested, but denied. Only Harmony as Siskiyou would be receiving a crosswalk. C:\DOCUME-1Ishipletd\LOCALS-1\Temp\July 26 07 TSC.doc Page 1 of 3 Herschel King, 791 Faith, said the increased speed on Faith was a concern. He approximated cars going as fast as 35 to 45 mph. He recommended speed bumps. Zane Jones, 2029 Siskiyou, resides at the new nine unit project that included ten children. He has never seen a close call at this intersection. He recommended prohibiting parking on one side only and then review its effectiveness before prohibiting parking on the other side. His concerned centered on the increased speed on Siskiyou and the difficulty of pedestrians attempting to cross Siskiyou Boulevard. Jones recommended reducing the speed to 30 mph on this section of Siskiyou. Olson reported that ODOT used a camera to observe pedestrian behavior. The other intersection Faith/Clay/Ashland was reviewed by the Commission less than one year ago. At that time because turns greater than 90 degree angles were more difficult to see around safely, increased prohibited parking was recommended. Discussion: Warshawsky asked if parking on one side only would be a problem. Olson thought not. Jackson was concerned with making Faith even wider due to parking prohibitions and the increased speed it may cause. Lemhouse was in favor on prohibiting parking on one side only as a good compromise. He thought it safer for pedestrians and made sense as a fire hydrant, cable box and mail box stand were already limiting parking. Decision: Jackson motioned that parking be prohibited by painting the curb on the west side. The change would be open to future review. Lemhouse seconded the motion and it passed four to zero with one abstention. 2. Scenic Drive / Church Street Intersection Study Staff liaison Jim Olson was asked at last month's meeting to provide the commission with documentation on the history of the intersection over the last seven years. He explained that actions included acquiring additional right of way and clearing vegetation. Staff is currently working with Lorraine Whitten to improve vision for pedestrians and noted that the intersection could continue to be improved, but never fixed completely. 3. Follow-up on Wightman Street Bike Path Sign Issues (oral report) Olson announced that there would be an oral report from Karl Johnson at Augusts' meeting. In the meantime, he would investigate other similar signs at various locations along the bike path. 4. Follow-up on Tolman Creek Road at Siskiyou Boulevard At last month's meeting the commission asked several questions regarding ODOTs jurisdiction over the intersection. Olson addressed these questions in a memo to the commission. He reviewed the memo. The commission wondered if a high accident rate would override normal warrants for a stop sign. Olson responded that the accident rate was one of the warrants, especially if a stop sign would have prevented the accident. No action was taken. 5. Revision to Parking Configuration on Beach Street With the closure of Lincoln School, staff thought the parking limitations on Beach Street should be reviewed. During the operation of the school a number of no parking zones were created to provide vision for two mid-block crosswalks and bus loading. Olson spoke to the current tenants, the Montessori school, who have no need for the crosswalks and bus loading zones. Staff recommends the C:\DOCUME-1\shipletd\LOCALS-1\TemplJuly 26 07 TSC.doc Page 2 of 3 crosswalk markings be removed or painted over and the yellow, green and white curbs between the north and south Lincoln School driveways be painted gray to within ten feet of the driveway. Decision: Bender moved to accept the staff recommendations that the crosswalk markings be removed or painted over and the yellow, green and white curbs between the north and south Lincoln School driveways be painted gray to within ten feet of the driveway. Warshawski seconded the motion and it passed unanimously. 6. Identify ACfS Oregon Mini-Grant Application September 7, 2007 is the deadline or the yearly $SOOO ACfS Building Safer Communities Mini-Grant. Olson asked the commission for ideas on a project to apply for. Nancy Slocum, grant writer for the Public Works Department, asked the commission to consider a project such as bike racks for the schools. She explained that several parents were interested in applying for a Federally funded "Safe Routes to School" grant the would include parent surveys, bundling projects, school district buy-in and time consuming grant administration. She thought that smaller grants such as this would be easier to obtain and administer and have the support of parents. Other ideas from commissioners included an additional Reader Board, portable speed bumps, pedestrian stings, drunk/drug driving education and hiring someone to update the city website to include traffic safety education. Discussion: The commission asked what education for drunk/drug driving would entail. Lemhouse talked about the problem from his perspective as a Medford police officer. He noted that middle aged to elderly people need more education especially on the effect of some prescription medication on driving. Ideas for education included public service announcements, literature to be distributed at doctor's offices and pharmacies, theater ads, a banner across East Main and link(s) on the city website. Decision: Busse moved to direct staff to apply for the grant with the project to include impaired driving education. Warshaswski seconded the motion and it passed unanimously. Slocum would work closely with Lemhouse on developing a program with associated costs, draft the grant, and present recommendation to the commission at the next meeting. 7. Bike & Pedestrian Issues None were discussed. 8. Agenda Items for Next Month A. Wightman Street Bike Path Signs B. ACfS grant C. Other 1. Busse asked that staff update the Commissioner mailing list. NEXT MEETING DATE: August 23, 2007 III. Adjourned 8:S8 PM C:\DOCUME-1\shipletd\LOCALS-1\Temp\July 26 07 TSC.doc Page 3 of 3 CITY OF ASHLAND Council Communication 2007-2008 Grant Agreement with the Chamber of Commerce Meeting Date: Department: Secondary Dept.: Approval: September 18, 2007 Administration Finance/Admin. Sv Martha J. Benne Primary Staff Contact: E-Mail: Secondary Contact: Estimated Time: Martha J. Bennett bennettm(<IJash land.or. us Lee Tuneberg Consent Statement: The City Council needs to approve the contracts for the FY 2007-2008 grant to the Ashland Chamber of Commerce. The grant amount is for a total of$255,070. Staff Recommendation: Staff recommends that Council adopt the attached contract. Background: The City has relied on the Chamber of Commerce to provide visitor and convention bureau services and certain economic development services for many years. The City provides a grant to the Chamber for these activities, and the attached contract outlines the specific tasks and outcomes that the City hopes to achieve with this grant amount. Of this grant, $85,330 goes to promote tourism that meets the state definition and $169,740 goes to specific economic development activities. The City Council held ajoint study session with the Chamber Board on June 25, 2007. At that meeting, several changes to the contract were discussed. Those changes included: · Including Chamber participation in the City's Economic Development Strategy development · Simplifying the contract and removing the repetition that exists in the contract · Increasing VCB activities related to promoting outdoor recreation . Increasing VCB activities and events for shoulder season and for visits of families with school-age and young children · Including participation of the Chamber in discussion of any potential increase in the Transient Occupancy Tax rate · Creating incentives for improved coordination among various economic development entities · Coordination with SOREDI, Job Council, State of Oregon, Thrive, and other economic development agencies that work in the City of Ashland · Include data reporting that will lead to Performance Measures to track progress, such as o Job creation o Increased lodging visits (TOT revenues) in first and fourth quarters o Penetration of Chamber programs into business community (total Chamber membership, training seminars, other events, etc.) Staff has gone over these changes with the Chamber of Commerce, and they agree that these are tasks that can and should be performed under the contract. cc- ChambcrContract.9-18-07.doc ~~, CITY OF ASHLAND This contract is for one year, rather than three years, as with the last contract. As discussed on June 25, the City may wish to revise the responsibilities that the City and Chamber provide for economic development after the economic development strategy is completed. Related City Policies: This contract implements part of the economic element (Chapter 7) of the comprehensive plan This contract implements Council resolution 2004-32 Council Options: Council can approve this grant agreement with the Chamber. Council can provide additional direction to staff for amendments to the grant agreement Potential Motions: . I move to approve the grant agreement for FY 2007-2008 with the Ashland Chamber of Commerce. . I move to approve the grant agreement with the following amendments (list them) . I move to direct staff to revise the agreement in the following ways (list them) and bring it back for consideration by the Council. As part of this motion, the Council is authorizing staff to continue to make monthly payments to the Chamber until the contract is adopted. Attachments: Draft contract cc- ChambcrContract-9~] 8-07.doc ~~, CITY OF ASHLAND Agreement for Services Between City of Ashland And Ashland Chamber of Commerce Agreement between the City of Ashland (City), the Ashland Chamber of Commerce (CoC) and the Ashland Visitor and Convention bureau (VCB) for fiscal year 2007-08. Recitals A. The VCB shall receive $85,330 for promoting tourism in Ashland based upon Ashland City Council Resolution 2007-08. That amount will be adjusted each year by the amount of inflation or deflation established in the budget process. The amount awarded for FY 2007-08 is $85,330, which will be disbursed in monthly amounts of $7,110.84 for the fiscal year. Expenditures of these funds must meet the requirement of ORS 320.300 through ORS 320.350. B. The CoC shall receive $160,000 for the purpose of economic development in Ashland based upon Ashland City Council Resolution 2004-32. That amount will be adjusted each year by the amount of inflation or deflation established in the budget process. The amount awarded for FY 2006-07 is $169,740, which will be disbursed in monthly amounts of $14,145.00 for the fiscal year. C. The City, CoC and VCB now enter into this Agreement. Purpose The City grants funds to the VCB to promote Ashland to visitors traveling from more than 50 miles to Ashland and to visitors who stay overnight in Ashland. Promotion includes advertising, publicizing, distribution of printed materials, marketing special events and festivals, conducting strategic planning, visitor center management and research necessary to stimulate tourism development. The City of Ashland shares responsibility with the CoC to handle economic development functions. Currently the Chamber provides the following kinds of services with funds granted by the City: coordinated marketing, rapid response team to inquiries, relocation services, point-of-contact management and information services, general inquiries, training for local business and coordination with the Small Business Association. The City of Ashland's Comprehensive Plan is the guiding document for all development within the community. The plan incorporates ten specific elements related to development. The economic development element is identified in Chapter 7. ECONOMIC DEVELOPMENT In conducting the work under this grant, the CoC will emphasize in its economic development activities: . The importance of maintaining Ashland's small-town feel . Ashland as a family friendly community that supports its schools and values high quality education. ~.l' . Ashland's commitment to environmentally sustainable business practices . The high quality of Ashland's workforce and the community's desire for businesses that offer family-wage jobs. . The rich cultural, social, and intellectual traditions of the community. . The importance of Southern Oregon University. . The high value Ashland places on diversity ECONOMIC DEVELOPMENT TASKS 1. Work with the City of Ashland to create an economic development strategy and action plan for the community that includes establishing goals, strategies, objectives, and actions. This strategy will also clearly define the roles and responsibilities of the various agencies working on business retention, expansion, and recruitment in Ashland. 2. Assist the City in reaching out to a broad spectrum of the community in developing the economic development strategy. 3. Continue efforts to retain and expand existing businesses, particularly businesses that are non- tourism related, with an emphasis on additional family wage jobs. The strategies should be based on research on the needs and growth potential of existing businesses. 4. Continue efforts to recruit new businesses to Ashland. As with the business retention and expansion plan, the Chamber should focus on non-tourism related businesses that provide family wage jobs. 5. Develop and provide accurate and timely information to assist businesses interested in locating, expanding, or remaining in Ashland. 6. Provide advice and information to existing businesses that may wish to remain or expand in Ashland. Coordinate with appropriate other agencies, governments, and non profits to assist in business retention and expansion. 7. Provide advice, information, and technical assistance to businesses interested in relocating in Ashland. Coordinate with appropriate other agencies, governments, and non profits to assist in business location decisions. 8. Develop and maintain strong working relationships with agencies and governments that provide financial and technical assistance or training to business. 9. Engage a cross-section of people and organizations in the work supported through this contract. VISITOR AND CONVENTION SERVICES In conducting the work under this grant, the CoC will emphasize in its Visitor and Convention Bureau (VCB) activities: . Ashland as a high quality destination in the winter, spring, and fall as well as the summer. . Ashland as a destination for people of all ages, including families with young and school-aged children . Ashland as a center for cultural, social, and intellectual pursuits . Ashland as a center for high quality outdoor recreational opportunities VISITOR AND CONVENTION SERVICES TASKS: 1. The VCB will develop and implement a strategy to maintain current levels of tourism in the summer months and increase tourism in fall, winter, and spring. This strategy should rely on the best available research into visitor behavior and best practices in the VCB industry. 2. The VCB should help the City leverage its investment into cultural and economic development grants by promoting the events and performances of groups that receive small grants from the City. 2 ~~, 3. The VCB should provide accurate and timely information to potential visitors and on-site information about the community to people who are vacationing. 4. The VCB should have an active marketing campaign to encourage and promote visits to Ashland that reinforce the strengths of the community. 5. The Chamber and VCB committee will assist the City in discussing a possible change in the transient occupancy tax. The Chamber will assist the City in designing and implementing a public outreach strategy for discussion of this issue. 6. The VCB should market and promote festivals and events in the fall and early spring, especially those provided by other recipients of cultural and economic development grants from the City. REQUIRED REPORTING The CoC shall provide an annual report to the Ashland City Council no later than January 31 on its previous year's activities. The report should include: 1. A summary and analysis of the specific steps taken to perform the tasks in this contract for both economic development and VCB activities. 2. Performance Measures. The Chamber shall include data that measures its success in both economic development and in tourism promotion in its report. At a minimum, the Chamber will include data that describes the total number of jobs within Ashland, by major sector (e.g., retail, wholesale, government, etc.) and data that measures the total collection of both transient occupancy tax and food and beverage tax, by quarter, in the grant year over the previous year. The City will assist in providing this data to the Chamber. The report should analyze and describe how tasks identified In this grant agreement affected total jobs and TOT and F&B tax collections. 3. A summary report of Ashland businesses that received direct assistance from the CoC for business retention or expansion. This report should include the total number of businesses that contacted the Chamber or that were contacted by the Chamber. 4. A summary report of prospective businesses the CoC talked with about relocating or opening in Ashland. This report should include the total number of businesses that contacted the Chamber or that were contacted by the Chamber. 5. A report on the variety of specific promotion activities executed for the purpose of attracting visitors to Ashland. Include samples of advertising, which include family, quality of life and educational opportunities. The report should include a description of the specific promotion activities targeted at attracting visitors to Ashland during the fall, winter and spring. Include samples of advertising, which include family, quality of life and educational opportunities. 6. A report about the VCB's analysis of the viability of new festivals and events for supporting additional tourism in the fall and spring, including efforts the VCB made to coordinate with other recipients of cultural and economic grants from the City. 7. A summary report of outreach efforts made by the CoC and Chamber to other organizations, businesses, and people to support the work of this contract. General Provisions 3 ~.l' 1. Amount of Grant. Subject to the terms and conditions of this agreement, the City agrees to provide funds in the amount specified above. 2. Use of Grant Funds. The use of grant funds is expressly limited to the objectives identified in this agreement. 3. Unexpended Funds. Any grant funds held by the Grantee remaining after the purpose for which the grant is awarded or this agreement is terminated shall be returned to the City within 30 days of completion or termination. 4. Financial Records and Inspection. Grantee includes in the annual report to the City a) copies of 501@ letter, IRS non-profit status and corporate bylaws; b) list of Board members, their occupations, and years on the Board; c) financial statements showing previous year expenses and revenues; d) current and projected budgets (total organization and individual program's funded by this grant). Grantee's report should show the relative share of City funds expended compared to overall project funds. 5. Living Wage Requirements. If the amount of this agreement is $17,342.00 or more, and if the Grantee has ten or more employees, then Grantee is required to pay a living wage, as defined in Ashland Municipal Code Chapter 3.12, to all employees and subcontractors who spend 50% or more of their time within a month performing work under this agreement. Grantees required to pay a living wage are also required to post the attached notice predominantly in areas where it will be seen by all employees. 6. Default. If Grantee fails to remedy any material breach of any of Grantee's obligations under the terms of this agreements within 30 days of receipt of written notice from the City of the breach, or if Grantee fails to expend the grant funds or enter into binding legal agreements to expend the grant funds within twelve months of the date of this agreement, the City, by written notice of default to the Grantee, may terminate the whole or any part of this agreement and may pursue any remedies available at law or in equity. Such remedies may include, but are not limited to, termination of the agreement, stop payment on or return of the grant funds, payment of interest earned on grant funds or declaration of ineligibility for the receipt of future grant awards. 7. Amendments. The terms of this agreement will not be waived, altered, modified, supplemented, or amended in any manner except by written instrument signed by the parties. Such written modification will be made a part of this agreement and subject to all other agreement provisions. 8. Indemnity. Grantee agrees to defend, indemnify and save City, its officers, employees and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, subrogation's, or other damages resulting from injury to any person (including injury resulting in death,) or damage (including loss or destruction) to property, of whatsoever nature arising out of or incident to the performance of this agreement by Grantee (including but not limited to, Grantee's employees, agents, and others designated by Grantee to perform work or services relating to Grantee's obligation under the terms of this agreement). Grantee shall not be held responsible for damages caused by the negligence of City or anyone acting in behalf of City. 9. Insurance. Grantee shall, at its own expense, at all times for twelve months from the date of this agreement, maintain in force a comprehensive general liability policy. The liability under such policy shall be a minimum of $500,000 per occurrence (combined single limit for bodily injury and property damage claims) or $500,000 per occurrence for bodily injury and $100,000 per occurrence for property damage. Liability coverage shall be provided on an "occurrence" not "claims" basis. The City of Ashland, its officers, employees and agents shall be named as additional insures. 4 r~' Certificates of insurance acceptable to the City shall be filed with the City Risk Manager or Finance Director prior to the expenditure of any grant funds. 10. Merger. This agreement constitutes the entire agreement between the parties. There are no understandings, agreements, or representations, oral or written, not specified in this agreement regarding this agreement. Grantee, by the signature below of its authorized representative, acknowledges that it has read this agreement, understands it, and agrees to be bound by its terms and conditions. 11. Dispute Resolution. In the event of any dispute between the parties relating to this agreement, the parties shall attempt alternative dispute resolution (mediation or arbitration) prior to filing any formal legal action. 12. Notices and Representatives. All notices, certificates, or communications shall be delivered or mailed postage prepaid to the parties at their respective places of business as set forth below or at a place designated hereafter in writing by the parties. Citv of Ashland Martha Bennett, City Administrator 20 East Main Ashland, OR 97520 Ashland Chamber of Commerce: Sandra Slattery, Executive Director 110 East Main Ashland, OR 97520 This Agreement constitutes the Entire Agreement between the parties. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this agreement. No amendment, consent, or waiver or terms of this agreement shall bind either party unless in writing and signed by all parties. Any such amendment, consent or waiver shall be effective only in the specific instance and for the specific purpose given. The parties, by the signature below or their authorized representatives, acknowledge having read and understood the Agreement and the parties agree to be bound by its terms and conditions. Citv of Ashland By Title Date Ashland Chamber of Commerce and Visitor and Convention Bureau By 5 ~~, Title Date 6 ... w_~ CITY OF ASHLAND Council Communication Hunter Internet Service Provider (ISP) Contract Approval Meeting Date: September 18, 2007 Primary Staff Contact: Joseph Franell Department: Information Technolo E-Mail: franelli(a~ashland.or.us Secondary Dept.: Legal Secondary Contact: Richard Appicello Approval: City Administrato Estimated Time: Consent Statement: Hunter Communications has asked for a contract to become a retail Internet Service Provider (ISP) on the Ashland Fiber Network (AFN). The attached contract is the same month-to- month contract that the other retaillSP's have and will renew monthly until final contract negotiations are completed with the other ISP's. Staff Recommendation: Approve the contract as presented. Background: Hunter Communications has had a relationship with the Ashland Fiber Network since the early construction phase and remains today a co-owner of the main fiber line between Ashland and the Qwest Central Office in Medford. Hunter communications commitment to a continued relationship is evidenced by their successful bid to provide AFN with bandwidth. Hunter is already successfully functioning as an ISP and is providing Voice Over Internet Protocol phone service in other parts of the Rogue River Valley. Related City Policies: The May 2,2006 Council Decision for the Ashland Fiber Network to continue to function as an Open Carrier network. Council Options: Approve or deny the public contract with Hunter Communications. Potential Motions: Local Contract Review Board moves to approve the public contract with Hunter Communications. Attachments: ISP Contract with Hunter Communications Page I of 1 CC - Hunter IS? Contract.doc ~4. .,-~ . afnINTERNET . ashland fiber network Internet Service Provider Cooperative Agreement CoopemtiYe Agreement between the City of Ashland, by and through its, Ashland Fiber Networt< Department (" AFN"), and Intemet Satvice Provider ("ISPi named below for the certification of ISP for afn fNTEflNETsetvices on AFN's telecommunications system through its fiber optic network ("the networki. ISPName: I /I ,[, <r Telephone: 51(- '17:2 -'P- .I. bitt (V (.j)fl1ytu.frltc...c~-rlvlt') -I-i?C, BiI~ng Address:", I C L "j) C f><< I f', ;" f ()D "..,"vfriSe "v<C, r", O,l.;"s, 1, CERl1FICATION PROGRAM. AFN win designate ISP as a and credit or payment requiremenls of ISP. ISP will certifted Intemet setvice provider on the network. A list of connect customers within ten business days from the date afi certified ISPs will be malntalned by AFN and provided the customer requests service and otherwise meets the to the public upon request. Only certified ISPs will be requirements of ISP for setvice, or wilen the necessary listed. wiring of the customer's residence or business for 2.. GolD SERVICE STANDARD. AFN may make available a connection to the network is installed, whichever date is premium '"Gold Standard" provider designation. Criteria for later. ISP win respond to aD customer complaints within receiving the Gold Standard c:lesIgnation will be provided by one business day of the date the complaint is submitted AFN, and may, in AFN's sole discretion be peoodlcally and shall provide a reasonable solution to all valid amended. Providers deslong the Gold Standard complaints in a timely fashion. designation must provide evidence satisfactory to AFN that 4.3. RATE PueLICATION. ISP shall publish Its rates they meet the minimum customer seMce criteria levels for for internet service in a manner that allows accurate receiving the designation. AFN, in Its sole discretion shall comparisons for like services from different Internet determine whether a provider meets the Gold standard service providers. ISP shalt notify AFN of its rates and criteria. Provklers may not advertise that they are a Gold provide 3O-day prior notice of any change in such rates. Standard satvice provider without express authorization 4.4. Co-BRANOING. All publicity and advertising by from AFN. AFN may offer special incentive and advertising ISP for service utilizing the AFN network shall indicate the programs to providers qualifying for and receiving the Goid integral relationship between ISP and AFN and comply Standard provider designation. AFN may, by written notice with the requirements of AFN's co-branding guidelines. to ISP, revoke the Gold Standard designation from any ISP 4.5 AccEPTAIII..E Use POLICY. ISP shall comply which fails to maintain minimum service level standards for with AFN's acceptable use policies. These policies apply the designation. to ISP and to any other person, organization or enmy 3. AFN SERVICE levELS. using ISP's services. The. acceptable use policies are 3,1. INsTALLATION. AFN will install coaxial cable subject to change at any time by AFN acting in its sole from the network to the residence or business of ISP's discretion, and all such changes shall be binding upon ISP customer and iostan the Intertor wiong within the residence upon written notice to ISP by AFN. Coples of such policies or business to the location specified by the customer for will be fumished by AFN upon request. the cable modem connection. 5. Term. Th~ agreement supercedes all prev;aus 3.2. SERVICE CHARGES. Service calfs by AFN agreements and shall be effective upon the date executed requested by ISP shall be billed to ISP at AFN's published by AFN and shail continue for 30 days, unless sooner seNice rates if it is detennined that the problem was not terminated as provided in this agreement. In the event the faull or responsibility of AFN. written notice is not given by either party to terminate this 4. CERT1FICATlON REQUIREMENTS FOR ISP. ISP agrees to agreement at least 30 days prior to the termination date, comply with ttte foUawing requirements and procedures in this agreement shall be extended for successive 30 day order to utilize the network as a certified internet service periods on the same tenns and conditions except for the provider. connection rates specified in paragraph 5. 4.1. REQUIRED MODEMS. Retailer shall use only 6. PAYMENT. Amounts requlred to be paid under this those cable modems wIlich meet AFN's cable modem paragraph shall be establIShed by AFN by pertodic specifications for use on the network, Retailer shall be publication of rates. Rates may be changed by AFN upon responsible for supplying the cable modem necessary to 45 days poor notice to ISP. connect Its customer to the network. Retailer may supply 6.1. RESIDENTIAL ISP shail pay AFN an amount the device through leasing, direct sale, lease/purchase, or per month at the published rate for each residential through third-party vendors or contractors, at Retallers Intemet account of ISP connected 10 the network, A discretion. residential intemet account is an account limited to one 4.2. ISP SERVICE levEL ISP shall provide Internet dynamic IP address. services to aJ1 Ashland residents or businesses who 6.2. CoMMERCIAL For each commercial internet request service and wIlo otherwise meet the hardware account of ISP connected to the network, ISP shall pay 1 - VOl? Cooperative Agreement (G:\Iegaf\PAUl\telecommunications\Forms\AFN I$P Contract 000601)(5102) address. A commercial internet account is an account with a maximum of eight llxed IP addresses. 6.3. PAYMeNT REPORT, DEPOSIT. All sums shall be paid monthly by the 15th of the month for all of 1S?'s accounts connected to the network in the previous month and for all service charges. For those modems that were active less than a full month, the ISP will pay a prorated amount based on the number of days the modem was active, Beginning January 1, 2005, the minimum monthly rate for an IS? shall be the equivalent of the amount for a residential internet account times twenty, If ISP fails to pay amounts due by the 15"', ISP agrees to pay a 10% 1_.. -,,_.,._ ...... ~h_ _....._1... "_I_~__ 1"'..... 1.-.4........4 ..A: ..~/.rv per month on such balance. AFN may require ISP to pay a deposit in advance of the provision of any a<:cess. Any such deposit shall be held by AFN in a non-interest bearing account and used to satisfy ~n wihole or in part) any obligatiOn of ISP under this agreement 7. R1!coRtl$ AND AuDIT REQUIREMENTS, ISP shall maintain a current customer list, including address, phone number and emall address for each subscriber. ISP shall also maintain fiscal records on a current, monthly basis to support its reports to City as to the number and types of customers. AFN or its authorized representative shall ha!ve the authority to inspect, audn, and copy on reasonable notice and from time to time any records of IS? regarding its customer list, reports or services directly pertinent to this agreement All required records must be maintained by IS? for three yean;, No more frequently than once per month, ISP shall provide AFN a current customer list within 15 days of AFN's written request for such. AFN agreas to keep allISP's records confidential to the extent permitted by law. 8. Right to Perform, If ISP fails to provide responsive customer service within the time frames sat forth In this agreement, AFN shall have the light, but shall not be required to, step in and perform necessary service to meet lhe customer needs. In the event AFN provides such service in response to lSP default, AFN may bill ISP for the actual costs Incurred ptus fifteen percent, ISP shall pey such bill no later than 10 days from the date of such BUL 9. TIl1lMlNA11ON. Either party may terminate this agreement for causa, provided written notice is given the olIter party specifying the cause for termination and requesting correction within 10 days for failure to pey a sum due, or wnhin 30 days for any other causa, and such cause Is not corrected within the applicable perfod. Cause is any material breach of the terms of this agreement, including the failure to pay any amount when due, the filing of a petition in benkruptcy by or against IS? or ISP's Inability to meat obligations when due; or failure of ISP to cure any violation (other than failure to pey) of the provisions of this agreement within 30 days notice by AFN, 8,1, AFN may deny IS? access to the network and cease to provide all or part of any services descrlbed 2 - VOIP Cooperative Agraement llOO6Il7){5I02) engages in any conduct or activity that AFN, In ItS sole discretion, reasonably believes causes a risk that AFN may be subjected to civil or criminal litigation, charges, or damages; or (c) would cause AFN to be denied access or to lose services by AFN's bandWidth provider, 8.2. If AFN ceases to provide or denies IS? access to the network pursuant to this paragraph, neither ISP nor any of lis customers shall have any right (a) to access the network through AFN (b) to a<:cess any materials, including voice or data messages, stored on the network, (c) to obtain any credlls otherwise due to ISP, and such credits shall be forfeited, or (d) to access third r-~' ".........;n..."'. .............1...0 ...... ""^+ limit.,....! tn <l:o....,rlt" services, emergency services or any other service utilizing an automatic dialer. AFN shall have no responsibilitY to notify any third-perty providers of services, merchandise or information of any discontinuance of any services pursuant to this paragraph, nor any responsiblllly for any consequences resulting from lack of such notification 8.3. If AFN terminates this agreement for cause, or if ISP lerminates this agreement without causa, ISP shall pay AFN a termination fee equal to the lesser of (a) the remaining chaflJes aPPlicable through the end of the scheduled term, or (b) six months of chaflJes. 9.4. If AFN terminates this agreement for cause, or if ISP terminates this agreement without cause in such a manner that its customers will be left without selVlce, without further notice 10 IS?, AFN may, in its sole dIsCretion, absorb ISP's customers into AFN's system or may seD lSP's customer list to another VOIP, Any proceedIs received by AFN for the sate of the customer list, shall be considered liquidated damages for the costs AFN incurs in promoting and consummating the sale and transfer of the customers to another provider. 10, ASSIGNMENT OR TRANSFER. This agreement Is unassignable and not lransferable, ISP shall not sell, assign, or in any other manner transfer its rights under this agreement or any interest of ISP in this agreement. 11. limitation of Uabitily. AFN SHALL NOT BE LIABLE TO ISP FOR ANY INCIDENTAL, INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES OF Ar-N KIND INCLUDING BUT NOT LIMITED TO Ar-N LOSS OF USE, LOSS OF BUSINESS, OR LOSS OF PROFIT, REMEDIES UNDER THIS AGREEMENT ARE EXCLUSIVE AND LIMITED TO THOSE EXPRESSLY DESCRIBED IN THIS AGREEMENT, 12. NO WARRANTIES, THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABIlITY AND FITNESS FOR A PARTICULAR PURPOSE OR FOR ANY INFORMATION, SERVICE OR MERCHANDISE PROVIDED THROUGH THE NETWORK, OR ANY TRANSACTIONS CONDUCTED ON THE NElWORK, ISP UNDERSTANDS AND AGREES FURTHER THAT THE INTERNET CONTAINS VIRUSES, WORMS, TROJAN HORSES AND OTHER HARMFUL COMPONENTS. ISP AND ISP'S CUSTOMERS ACCESS (G:lJegal\PAUL\telecommunleatiooa\Forms\AFN IS? contract SUCH COMPONENTS AND MATERIALS AT ISP'S OWN RISK. AFN HAS NO CONTROL OVER AND ACCEPTS NO L1ABIUTY OR RESPONSIBILITY WHATSOEVER FOR SUCH COMPONENTS OR MATERIALS. 13. lJNcONTllOlJ.ABLE CONDmoNs. Nerther party shall be deemed in Yiofation of this agreement if it is prevented from perfonniog any of the obligations under this agreement by reason of severe weather and storms; earthquakes or other natural occurrences; strikes or other labor unrest; power failures; nudear or other civil or mifitary emergencies; acts of legistatlve, judicial, executive or administrative Su1horities; Of" any other circumstances whiCh are not within its reasonable control. 14. INDEMMFlCATJON:. ISP shall hold hannless, defend and indemnify AFN, its elected or appointed officials, offk:elS. employees and agents, from all daims, damages. losses. liability and expenses arising from the negligent or other tortious acts or omissions of ISP and its officers, agents, employees and independent contractors. AFN, to the extent of the Oregon Tort Claims limitations set forth in ORS 30.265, .1 seq. shall hold hannl..., defend and indemnffy ISP. tts offldals, officers, emJ>>oyees and agents. from all daims, damages, losses, liability and expenses arising from the negligent or other tortious acts or omissions of AFN and its officers, agents, em~oyees and independent contractors. 16. ATTORNEY FEES. If this agreement Is placed in the hands of an attorney due to a default in the payment or performance Of any of its terms, the defaulting party shalf pay. immediately upon demand, the other party's actual fees and expenses together with reasonable attorney fees, even IhbUOh nO/1"- or actIOn IS filed IS? By: I::. rl/ f;-;-- Title' ?r,,; <1,,"+ / C L.c) Date 09);1/.';;007 AFN; By; Title; Date; legal Review; Date; Departmental Review: Date: 3 ~ VOIP Cooperative Agreement (G:IIegaI\PAUlItelectlmmunlcations\Forms\AFN IS? Contrect 090607)(5102) CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dep!.: Approval: Schedule for Rates and Fees Review September 4, 2007 Primary Staff Contact: Finance E-Mail: Public Works Secondary Contact: Martha Bennett Estimated Time: Lee Tuneberg ~_ Paula Brown COflsent New us- M.in~7 Statement: During the recent budget process and utility rate discussion, Council requested that staff review the City's rates and fees for the water, wastewater, storm drain and transportation utilities. This staff report provides the recommended schedule and process to evaluate and update these fees. Staff has also addressed the timing of an electric rates review so that Counci I may understand the timing and impact of projects before the City. Staff Recommendation: This item is presented for Council's information and to identify the rates and fees review process. Staffwill continue to utilize the process as outlined below unless redirected by Council. Background: Each utility has a process to update the respective system's master plan which identifies the specific elements, maintenance requirements, maintenance schedules, long-range planning for upgrades and improvements and critical capacity concerns. From those plans, the operating costs can be determined along with the systems development charges needed for system upgrades. Each utility is responsible for establishing rates and fees to provide sufficient funds to fully operate the utility system. The Ashland Municipal Code has the following sections pertaining to rates and fees: 4.26.020 Establishment of Tral1sportatiol1 Utility Fee The City Council may establish by resolution a transportation utility fee to be paid by the OWl1ers or occupants of property within the corporate limits of the City. Such fee shall be established in such amounts which will provide sufficient funds to properly maintain local streets and provide for pedestrian facilities including handicap access and bicycle facilities throughout the City. ... The City Council may from time to time by resolution, change the fees based upon revised estimates of the cost of properly maintaining local streets and constructing pedestrian facilities including handicap access and bicycle facilities, revised categories of developed use, revised traffic generation factors, and other factors. During the budget process, the Finance Director was able to accurately characterize the difference between the operational costs and capital costs in the Street Fund (affecting both transportation costs and storm water portion of the utility) so that the basis for fees and rates can be readily updated. Page I of 4 cc- Rates and Fees Review ~~, CITY OF ASHLAND Currently staff is in the process of two actions that relate to the Transportation Utility Fee; I) Completion of the Transportation (Street) Financing Task Force which will be presented to Council on Octobcr I st, and 2) Update of the Transportation System Plan (TSP) and Transportation System Development Charges (SOC). Staff is in the process of hiring a consultant (proposal review process to be completed on August 3], 2007) for the TSP and SDC update and expects the Plan to be completed not later than March 2008. It is proposed that the rates and fees discussion be a part of that analysis and potentially added to the consultant's contract. 4.27.050 Establishment of a Storm Drainage Utility Fee A storm drainage utility fee shall be paid by each person(s) responsible and shall be established by resolution of the Council fiJr commercial or industrial units, duplexes, mobile home parks, multiple family units, single family units and equivalent residential units I. Suchfee shall be established in amounts which will provide suJJicient funds to properly manage and maintain public storm drainage facilities. 2. Such fee may be usedfor the construction of new storm drainage facilities orfor the extension of existing storm drainage facilities. 3. Council may from time to time by resolution, change the fees based upon revised estimates of the cost of properly managing, maintaining, extending and constructing public storm drainage facilities ... Currently staff is just beginning the Storm Water Master Plan update and SDC review, and has selected Kennedy Jenks to complete this work. It is anticipated that the project will bc completed by the end of the calendar year. It is proposed that the rates and fees discussion be a part of that analysis and potentially added to the consultant's contract. 14.04.030 Water rate schedules The water rate schedules and senior discount rate shall be established by Resolution of the City Council.... copies o(which shall be maintained in the ojJice of the City Recorder and shall set forth the water rates for use and sale of water within and without the City Limits from the municipal water system. 14.08.025 Sewer Service Connection Rate Schedule Sewer service connection charges within the City Limits shall be as established by Resolution of the City Council.. copies of which shall be maintained in the office of the City Recorder. The water and sewer master plans have either just been updated or are in relatively current condition. During the budget process, the Finance Director was able to accurately characterize the difference between the operational costs and capital costs so that the basis for fees and rates can be readily updated. The SDCs for water and sewer were completed in 2006, and other than validating project requirements, will not need a full update for the next several years. However, the rates for both water and sewer have not been evaluated for several years and should be done this fiscal year. It is proposed that staff write a request for proposals to evaluate the water and sewer rates and fees so that the work Page 2 of 4 CC. Rates and Fees Review ~~, CITY OF ASHLAND can be completed by March 2008. It is estimated that the cost of these services would be approximately $40,000 Status of Estimated cost Status of Master Status of SDCs Rates and to complete Plan(s) Fces Rates & Fees Analysis Transportation In progress - In progress - Add to current Extra $] 0,000 completion scheduled completion scheduled SDC review - for March 2008 for March 2008 Storm Drain In progress - ]n progress - Add to current Extra $10,000 completion scheduled completion scheduled SDC review for December 2008 for December 2008 Water Complete 2004 Completed 2006 Need a new Combined with (distribution) /2006 evaluation WW (plant) (2008) Wastewater Complete 1998 (plant Completed 2006 Need a new Combined water (sewer) and will be updated evaluation and wastewater with the permit (2008) for a total of renewal in 2008) / $40,000 2004 (collection system) total (2008) $60,000 Not addressed in the above table are electric rates and their timin~ for review and adiustment. Below is an.update. 14.16.030 Electric Rate Schedules The electric rate schedules shall be established by Resolution of the City Counci....copies of which shall be maintained in the office of the City Recorder, and shall set forth the electric rates for use and sale of electric energy and services within and without the City Limits from the municipal electric system. (Ord 2250 S1, 1983, Ord 2673,1992) The need for changes in Electric rates remains fairly stable since we are enjoying lower costs from Bonneville Power Authority (BP A) that helps offset increased operational costs. Electric rate adjustments were put off until January 2008 and may not be required at that time. Staff will monitor costs and revenues and keep Council informed. A major rate review should be done as part of the next BPA contract negotiation that will be effect in the 2010-201 I timeframe. If Council is interested in significant rate structure changes staff would recommend that a review by an outside consultant occur late this fiscal year after most of the other adjustments have been addressed. The cost of the review would be dependant upon the outcomes desired and may be as expensive as the water and wastewater studies combined. Page 3 of 4 cc- Rates and fees Review ~.. ...11 CITY OF ASHLAND Related City Policies: City Budget Process Ashland Municipal Code Facility Master Plan documents: Transportation System Plan Wastewater Treatmcnt Plant Facilities Master Plan Wastewater Collection System Master Plan Storm Water and Drainage Master Plan Water Treatment Facilities Master Plan Water Distribution System Master Plan Council Options: Council may acccpt staffs recommendations outright, provide alternative recommendations, request furthcr analysis or reject the process as proposed. Potential Motions: This item is on the consent agenda and requires no specific action from Council. Should council desire to provide additional recommendations or redirect staff s efforts, this item may be called off the consent agenda and discussed this evening or discussed at a future time. Attachments: none Page 4 of4 cc- Rates and Fees Review ~.. ...., CITY OF ASHLAND Council Communication Record Submissions and Deliberations for PA2007-00455, 247 Otis St. Final Plan Meeting Date: September 18, 2007 Primary Staff Contact: Richard Appicello Department: Legal E-Mail: appicelr@ashland.oLus Secondary Dept.: I ning Secondary Contact: David Stalheim Approval: Estimated Time: 30 minutes Statement: On August 21, 2007 the public hearing regarding 247 Otis Street Final Plan was closed but the record was held open. The Applicant submitted final written argument after the close of the record. The additional submissions are attached for your consideration in deliberations. Staff Recommendation: Deliberate and vote. Background: At the August 21't, 2007 public hearing on the appeal ofPA 2007-00455, final plan for 247 Otis Street, the record was left open for 14 days to allow for submission of additional information. Attached are the submissions received from the appellant and the applicant. Related City Policies: N/A Council Options: N/A Potential Motions: NA Attachments: Art Bullock, Record Submission, dated August 29, 2007 Chris Hearn, Response to Record Submission, dated September 5, 2007 Draft Findings of Fact and Conclusions of Law for 2007-00455 Page I of ] CC - 247 Otis findings 091807.doc r~' Appeal Of Planning Action 2007-00455 Helman Springs Development, 247 Otis St Art Bullock, Record Submission 2007 Aug29 It would be legal error for council to approve the so-called Final Plan' of Planning Action 2007- 00455 ("PA07-455" or 'Helman Springs") for reasons below. Many proposal parts aren't finalized. Council is asked to approve a project based on faith rather than a detailed Final Plan Application as required by law. Legal purpose for Final Plan Application ("Final Plan") is to enable review of a finalized planning proposal, presented with enough detail to enable public review and developer commitment. Public is entitled to open, quasi-judicial review of the Final Plan for Helman Springs prior to construction. Developer must then follow that approved plan, its conditions, and requirements. Several unmet conditions require council to decline this application as failing to fulfill applicable criteria and Outline Plan conditions. Common thread of several legal issues here is the lack of an adequate Final Plan. Although a Final Plan application, council has almost the same information it had on Outline Plan review-- namely, a proposal to do it in the future. There's almost nothing final about this 'Final Plan' application. Some Relevant Background Facts Ashland's last hot spring. Ashland area has only a handful of hot springs, most notably Jackson Wellsprings, the former hot springs below Ashland Food Coop, and Helman Springs. These 3 hot springs are probably the same geological structure. Jackson Wellsprings is outside the city limits (for some reason, the earth's geology doesn't respect city limit signs). Former Railroad District hot springs ("Twin Plunges") are now covered by Ashland Food Coop (rumor says they use the hot springs to make a tasty deli soup). This application may be for the last hot spring inside Ashland. Hot springs vs cold springs. Hot springs and cold springs are very different. Ashland has hundreds of cold springs. In much of the Railroad District and Quiet Village, one needs to dig only a few feet to find flowing water, emerging in countless places as cold springs. Cold springs fell as rainlsnow on Wagner Butte a few weeks/months ago, soaked into the ground until it reached a slanted rock or impermeable soil layer, and emerged on lower altitudes as cold water springs, gravity fed. Some are seasonal, weather-based. Hot springs fell as rainlsnow decades or centuries ago, filtered through thousands of feet or miles deep into the Earth, until the water reached a magma-heated layer. Heated like water in a pressure cooker, hot water under pressure rose AGAINST GRAVITY through a geological crack to re-emerge on the earth's surface, like the jiggling pressure relief valve on a stovetop pressure cooker. Hot springs water. Hot springs water is special in 4 key ways: (1) high-mineral content, (2) nonexistent or extremely low levels of human-made compounds, (3) potential energy from water pressure, and (4) the heat itself. Hot springs water has filtered through miles of permeable soil and rock layers, so it's almost devoid of human-made compounds. High concentrations of synthetic compounds began polluting the atmosphere after World War II, when petrochemical processing grew dramatically. Much hot springs water fell as rain before petrochemical pollution began, some before Industrial Revolution pollution began. Hot springs water is some of the most human-free water on the planet, second only to glacier water frozen since the Ice Age. Consumer taste tests showed water from Hot Springs, AR was the best-tasting water tested, better than any cold spring or municipal water. Hot springs water is special water. Synthetics out, naturals in. Miles of filtering Earth remove synthetic compounds and ADD Earth minerals. To leam what minerals are below your feet, study hot spring water. When you drink it, you're drinking the Earth, literally. High-mineral content brought reported health benefrts, as some minerals can be absorbed through the skin by sitting, bathing, or swimming in hot spring water, relieving mineral deficiency symptoms. Hot springs are one way the Earth retums its intemal minerals to the surface, and they're less traumatic than 2 other way&-- earthquakes and volcanoes. Error 1. Final Plan failed to satisfy Outtine Plan conditions regarding swimming pool leak. Neighborhood has had problems with runoff from this property for decades. Property has numerous hot springs, as shown on the DSL map. One of those hot springs has been piped to a swimming pool and bathhouse that used to be a public pool, called "Helman Baths", Property's swimming pool has leaked for more than 50 years, creating a permanent wetland on the north side of the bathhouse, which then overflows on Randy SI. This creates a continual pedestrian hazard for slipping, perpetual algae and mold problems, freezing water on the street in winter, and runoff of high-mineral hot spring water into storm drains, Robert Coffan of Cascade Earth Sciences, hired by developer to conduct water tests on the property, reported in his "Assessment of Geothermal Potential of the Warm Water Well and Water Quality" ("Water Report"): 1.0 Task 1. Investigation of Pool and Holding Tank During Maintenance Draining On Tuesday, August 1, 2006, a CES Staff Engineer visited the Site while the pool and holding tank were being drained for maintenance. The purpose of the visit was to investigate the springs that reportedly existed within the pool bottom. Two spring vents, both approximately 16 inches in diameter, were observed in the bottom of the pool (Photograph 1, Appendix A). One opening is bordered by a wooden frame and the other is an opening in the concrete. The two openings are spaced approximately two feet apart (Photograph 2). The close proximity of the openings may suggest a single spring. In order to detennine whether the two vents are from one or two springs, a geotechnical assessment of the subsurface, including water chemistry, would be necessary. A geotechnical assessment of the subsurface was beyond the scope of work for this project. However based on the obseNations discussed below, for all intent and purposes, it is reasonable to assume that the two vents represent one spring. The water from the pool empties into a drain located near the two spring vents. The pool was empty at the time of inspection. The water from the spring vents in the bottom of the pool was flowing to the drain (Photograph 3). A small bucket with 1-</uart gradation marks and a wrist watch were pooi an<lthe entire building. This problem would have to be solved by a French drain or equivalent 4-6 feet below the swimming pool to move water from 2 sources: (1) pool leaks and overflow, and (2) natural hot spring that feeds the pool from below. This would be a huge and expensive undertaking, given the age of the pool. It could easily generate new cracks in the pool, and cause more leaks and a bigger problem. Outline Plan requires an utility plan and storm drain plan that protects neighborhood and public interests for how this is to be done. Final Plan does not show an adequate plan for solving the decades-old problem of water from the former Helman Springs bathhouse onto Randy St and the proposed sidewalk. Public has been denied its legal right to review a Final Plan solving the health and safety problems of pool leak and curb overflow, with developer commitments about what exactly will be done. This problem has existed for more than a half-century. Final Plan's lack of the required utility plan and storm drain plan would allow the problems to persist for another half-century. Error 2. Outline Plan requirements for an adequate utility plan and storm drain plan to handle wetland runoff have not been met. In addition to swimming pool runoff, property has major runoffs from westside wetlands. These wetlands continually flood curb and gutter, and overflow into the storm drain, which empties out on the ground at the end of Glendower St, above, and a few feet from, Ashland Pond and Bear Creek. This is not normal water. This is high-mineral water from hot springs deep from within the Earth, cooled to about 810 when it reaches the surface at Helman Springs. If you poured this water on your vegetable garden, the high boron content would likely kill your vegetables. Minerals are so concentrated they change the ecosystem where the water overflows. Environmental resolution required by the Outline Plan hasn't been met because the required reports aren't in the record. DEQ has City of Ashland on notice for Bear Creek water being too hot. City is required to reduce water temperature in Bear Creek. Because of unnecessary paving, with buildings and concrete replacing permeable surfaces, Bear Creek has more flooding during winter rains and less water in summer because rainwater is shuttled into storm drains rather than replenishing the water table naturally. Less summer water in Bear Creek means hotter water, because sun's rays have to be absorbed by lower flow. Robert Coffan's Water Report established: "Relevant features at the Site that pertain to this assessment are shown on Figures 1 and 2. As previously reported, "owing springs were observed investigated in the bottom of the pool and the holding tank. Although the depth of the wann water well was reported 1 to be up to 700 feet below ground surface (bgs), the total depth that was monitored with this assessment was only 21.1 feet bgs, which would be more typical of an older well that was likely hand-dug. The temperature of the well water was almost constant, ranging from 80.4 degrees Fahrenheit ('F) at the surface of the water table to 81.43"F at the bottom of the well. Water quality from the wann water well was compared to water quality from two other springs, one seep, and groundwater encountered in two test pits. With the exception of one test pit (TP-4) (Figure 2) located in the southeast comer of the Site near Otis Street, the water-quality signatures of the all samples are very similar to the wann water well, and indicative of geothennal origin. Due to the shallow depth, low temperature, and relatively poor water quality, the wann water well is not a viable geothennal resource, or a good water source for irrigation needs. Where's the plan to prevent runoff of hot spring wetland water from overflowing onto Randy St and the proposed sidewalk? It's required by Outline Plan, yet not in Final Plan. Where's the plan to prevent too-warm hot spring water from the property's many hot springs from increasing Bear Creek water temperature rather than reducing it as DEQ requires? It's not in Final Plan. Where's the plan to prevent high-mineral hot spring water from permanently altering the riparian and water ecosystems of Bear Creek at Glendower Sl and downstream? It's not in Final Plan. Developer's crew and public works have met behind closed doors to consider options, yet contents of the meeting(s) are not in the record, and appellant was denied the information. Like runoff from swimming pool leaks, public and council are being asked to accept a project based on faith rather than an adequately detailed Final Plan. Outline Plan conditions aren't satisfied. This is a unusual and difficult situation to plan, which increases the need to provide the utility plan and storm drain plan in the record for public review and developer commitment. Sage must show these plans for review and commit to what will be done for this half-century public safety and health problem. Record shows the plan has NOT been finalized to prevent wetland overflow onto Randy St and thereby causing unintended environmental consequences of adding more minerals and temperature to Bear Creek and Glendower St riparian area. Outline Plan requires Final Plan to include utility plan and storm drain plan showing how these problems will be resolved. Final Plan doesn't include the 2 plans. As with other issues, Final Plan claims to do it later. "We'll take care of it later" is legal error. Error 3. Pedestrian path does not meet Tree Commission requirements as Outline Plan required. Final Plan submission leaves unresolved the pedestrian pathway from development to Randy St. PC failed to adequately resolve issues here- width, depth, and surface of the pedestrian walkway through the labeled "Tree Park Open Space". Application shows path through tree protection zone, directly under maple trees at the property's NE comer. At council's 2007 Aug21 public hearing, after appellant asserted this legal error, developer committed to a pervious concrete surface allowing water to soak through the surface directly into the ground, thus water table. Developer also clarified a commitment to an 8 ft wide path with no fence closer than 3 feet from the path. How deep will ~ be? Don't know. Deep enough to provide a surface that won't heave and crack. Will it be so deep as to damage the tree roots and kill the maple trees? No guarantees. Application shows path goes under several large maple trees, inside their drip zone, by large roots. Condition 17 requires Final Plan to follow Tree Commission recommendations. Yet Tree Commission did not review or approve Final Plan. Review was scheduled for Tree partil:ipatiorf is specified in the proposed conditions. Both are clouded 'by the vague phrase "fair share", How much is that? Don't know. Is it $10? $10,OOO? $100,000. This is not a trivial or administrative matter. Because of continued over-engineering, City's street 'improvements' have become major financial burdens. On Nevada St, a simple sidewalk project, which private property owners got for $3/ sq ft, suddenly ballooned to more than a quarter-million when Public Works added rebuilding the storm drain system and contractors added the govemment 'discount'. The street is only part of the issue. Final Plan does not even extend the Otis St sidewalk to Laurel St, which is the neighborhood collector street. At hearing, developer said they were now committed to installing that sidewalk. Final Plan satisfaction of this Outline Plan condition requires a plan with adequate detail to allow public review to ensure that (1) Laurel LID includes major access streets to the subdivision, (2) developer pays the costs to upgrade major access streets to City street standards, (3) LID boundary and required contribution of subdivision, neighborhood property owners, and taxpayers be set to determine if Outline Plan requirement for subdivision to pay its "fair share" has been met, (4) the arrangement is legally binding for City and Sage, so neither can back out of the requirement to upgrade major access streets to City standards, and (5) Sage is prevented from using its many LID votes to formally object and prevent any LID from being implemented, thereby preventing satisfaction of the code and Outline Plan. Sage's response to this condition is that they agree with the condition. Final Plan must show HOW Sage will meet the condition, not just agree to do it later. Final Plan cannot replace a requirement for a plan for public review and approval with a commitment to do the plan later. This IS later. Error 5, Water permit condition not met. Outline Plan condition for a water permit determination has not been met. Water used to fill the Helman Springs swimming pool is hot spring water requiring a water permit. At Planning Commission (PC) hearing, Commissioner Olena Black testified during ex parte disclosures that she had contacted the watermaster to gather information regarding the project's unresolved issue of whether a water permit was required for the hot spring feeding the swimming pool. Black said the watermaster clarified to her that (1) water permits are required for springs, though possibly not for wells, and (2) the difference between a spring and well was whether the water exited the ground naturally or by pumping. In response to a direct question from Black, property owner's representative Don Rist told PC there was no pump on this water source. Water on this property, at the springbox and elsewhere, exits the ground naturally, without pumping required. Oregon Water Law, as communicated by the watermaster through Olena Black, requires a permit for hot spring water used on this property for the swimming pool or water feature. Application shows no permit to use hot spring water as 'equired by Oregon law. Application shows no determination from the watermaster that a permit is not required. Outline Plan condition required Final Plan to include a 1etermination whether or not a permit is required. Final Plan ncludes no such determination. Final Plan includes a contractor memo claiming the hot spring is a well, so no permit is required. Calling a spring a well does not change its legal status. Putting a pipe in a hot spring does not convert it to a well and allow circumvention of required Oregon water rights permits. Hot springs on the property come from deep within the Earth, where the water is heated under tremendous heat and pressure, pushing up through the earth's surface to exit the ground, cooling at Helman Springs to about 810. Helman Springs hot springs are not artesian springs fed by water entering the Earth at a higher altitude location and exiting at a lower altitude, fed by gravity. Helman Springs water rises against gravity, fed by heat and pressure from deep within the Earth. This project's earty record claimed a 'Well' in the hot spring feeding the swimming pool was 700-1,000' deep. Testing showed it was 21.1' below ground surface and was hand-dug. Legal determination of water rights and a water rights permit for using hot spring water must come from the watermaster. Legal determination cannot come from a self-serving memo claiming in effect, "it's a well, so we don't have to". Council approval of this project while failing to require proper legal determination of water rights for hot springs on this property would cause council to exceed its legal jurisdiction under Oregon law, Council cannot grant water rights, directly or indirectly, to use hot springs water to feed a swimming pool, a 'water feature', or any other purpose without a proper and legally binding determination from watermaster. Nor can council approve a homeowners' association agreement to divide the water between homeowners and current property owners without such determination. Application should be denied for failure to include a proper legal determination from the watermasler regarding water rights for property's hot springs, particularty hot springs water used to fill the swimming pool and proposed to feed a 'water feature', Without such a legal and binding determination, council would exceed its authority under Oregon law to approve the application. Error 6. Application was not properly signed, Final Plan was not property signed by the property owner and developer. Identity of individual(s) signing the 2 signature is not shown. At public hearing rebuttal, developer Devian Aguirre stated that "we signed it for her" [property owner Sylvia Chambers]. without disclosing who "we" were or the identity of the individual(s) who actually signed the document in either signature location. It would be legal error to approve this application without proper signatures and known identit es of signer(s) for developer and property owner. Error 7. Plan improperly delegates quasi-judicial authority , This application fails due to an improper delegation of quasi-judicial authority from council to staff. Under Oregon law, no branch of govemment can delegate its authority to another branch. Yet that's what this Final Plan proposes. The power to make discretionary judgments is being transferred from council, as elected representatives, to staff. This is an improper shift of power from the judicial function of govemment to the executive branch. This application shifts the power to decide from council to Assistant City Attomey Richard Appicello, Planning Director David Stahlheim, and Public Works Director Paula Brown, in the executive branch of government, in negotiation with Chris Hearn, the developer's JACK DAVIS CHRISTIAN E. HEARN' SUSAN VOGel SAlADOfF:J; JENNifER A. BRIDGES JESSE A. VISSER C. CAlEY WHITE' DAVIS HEARN-=OFF BRIDGES. SER. ATTORNEYS AT LAW SAM I. [)AVIS. Retired SIDNEY E. AINSWORTH (1127-2003) DClNALD M. I'IMrKlCK - ~ DAVID V. GllSTM.P - Of Coon.-t E_,853 .A'-OAd..._dtoP""~,"CA :t AI.o Ad..._d to P...,ct_ '" DC. MD. "A .fld IIIJ A Prof_ CorporIItion 515 EAST MAIN STREET ASHLANO, OREGON 97520 (541) 482-3111 FAX (541) 488-4455 www.dsvlshssm.com September 5. 2007 Via Emall Transmlssion(RichardAppicello<appice/r@ashland.or.us>; Martha Bennett <bennettm@ashland.or.us>; David Stalheim <stalheid@ashland.or.us>; Barbara Christensen <christeb@ashland.or.us> ;Susan Yates <yatesS@ashland.or.us> ) Council and Mayor City of Ashland 20 East Main Street Ashland, OR. 97520 RE: Helman Springs Project (247 Otis Street) Planning Action # 2007..00455 Art Bullock Appeal of Final Plan Approval "Applicant's Rebuttal" Applicant: Sage Development, LLC Dear Council and Mayor: Devian Aguirre of Sage Development ("Applicant") requested I review and comment upon the "Record Submission 2007Aug29" Appellant Art Bullock ("Appellant Bullock"). BACKGROUND CHRONOLOGY: . March 14, 2006; June 13, 2006; June 27. 2006; July 11, 2006. Applicant's Outline Plan application proceeded through the public hearings process before the Planning Commission. Rec: pp. 46-55. During the Planning Commission hearings, extensive public testimony was presented and exhibits received. Id. Page -2- Council and Mayor, City of Ashland September 5, 2007 . July 11, 2006. The Planning Commission deliberates and approves Applicant's Outline Plan. Rec: pp. 46-55. . September 8, 2006. Appellant Bullock and others appeal the Planning Commission's decision to Council. Rec: p. 57. . October 17, 2006; November 7, 2006; December 5, 2006; January 2, 2007. Council holds extensive public hearings on the appeal of the Planning Commission's Outline Plan approval. During the public hearing process, Council listens to public testimony and receives exhibits. At the December 5,2006 meeting, Council deliberates, and approves Applicant's Outline Plan for the proposed 18-unit subdivision, with some modifications to the conditions imposed by the Planning Commission. Council issues its Findings of Fact, Conclusions of Law, and Order approving Applicant's Outline Plan on January 2, 2007. Rec: pp. 56-75. Council's decision is not appealed to LUBA. . March 16, 2007 - May 11, 2007. Applicant submits to Planning her application and the supporting documentation required for Final Plan Approval. Rec: pp. 80-270. . May 24, 2007. Final Plan approval is processed under a "Type I" procedure, which includes review by Staff, followed by notice of Staff's decision, and review by the Planning Commission Hearings Board. ALUO 18.108.040.A.1; ALUO 18.108.040.8. Staff reviews and approves Applicant's Final Plan, finding it in accord with the Outline Plan approval and conditions forged by Council after the extensive public hearing process - which occupied a substantial portion of Council's meetings on October 17, 2006; Novem ber 7, 2006; December 5, 2006; and January 2, 2007. Rec: pp. 20-21. . June 4, 2007. Appellant Bullock requests review of Staff's tentative Final Plan approval by the Planning Commission. Rec: p. 272. . June 10, 2007. The Planning Commission holds a public hearing on Appellant Bullock's appeal, and issues its Findings, Conclusions, and Orders approving Applicant's Final Plan. Rec: pp. 10-19. D.-\\ lo.,IlI-\Il'. S.,! -\j)()11 HRI[)(') 0. & \'ISSI-R A Professional Corporalion 515 EAST MAIN STREET ASHLAND. OREGON 97520 (541)482-3111 FAX (541)488.4455 Page -3- Council and Mayor, City of Ashland September 5, 2007 . July 27, 2007. Appellant Bullock again appeals the Planning Commission's approval of Applicant's Final Plan. Rec: p. 1. . August 21,2007. Council holds a public hearing on Appellant Bullock's appeal. Appellant Bullock demands the record be left open for additional written argument. . August 29, 2007. Appellant Bullock provides City with his "Record Submission 2007 Aug 29." APPLICANT'S REBUTTAL: Applicant's Response to Appellant Bullock's "Relevant Background Facts." . The purported "relevant background facts" offered by Appellant Bullock appear to be a thinly veiled invitation to Council for re-analysis of the facts and issues previously explored during extensive public hearings on March 14, 2006; June 13, 2006; June 27, 2006; July 11, 2006; October 17, 2006; November 7,2006; December 5,2006; January 2, 2007; June 10,2007; and August 21,2007. The Planning Commission and Council listened to ample testimony and reviewed hundreds of pages of evidence, and argument on these issues during many hours of public testimony and discussion. . Council made its decision to approve Applicant's Outline Plan, with specific conditions of approval forged to balance and mitigate the potential effects of the project. Rec: 56-75. . The purpose of Final Plan approval is for the City to confirm that Applicant has appropriately addressed the conditions of Outline Plan approval. The Final Plan approval process is not a second opportunity for an Appellant to again raise facts and issues previously scrutinized by Council following the exacting Outline Plan approval process. [J\\I~. 1l1\!! '. S,\I\lHl] I BRIIH.I'& \'1..,,,1 Ii A ProhJ~Slonal Corporation 515 EAST MAIN STREET ASHLAND. OREGON 97520 1541)482-3111 FAX (541)488-4455 Page -4- Council and Mayor, City of Ashland September 5, 2007 . Appellant Bullock's Alleged "Error 1. Final Plan Failed to Satisfy Outline Plan Conditions Regarding Swimming Pool leak." . The "Error 1" alleged by Appellant Bullock apparently asserts that the swimming pool causes water to flow over the curb and into Randy Street, and that the situation was not dealt with and resolved as was requested in the conditions of approval from Outline plan. At the same time Appellant Bullock alleges that Applicant did not complete the required engineering documents in connection with either Outline Plan or Final Plan . .Applicant's Rebuttal to Swimming Pool leak Allegations: . Applicant's Final Plan submittals includes a professionally engineered drainage solution. The engineer's drawings includes "cut-off drains" along the back of the Randy Street sidewalk. These "cut-off drains" are designed to prevent all water from escaping the site on the surface. This solution was designed by an Oregon-licensed professional civil engineer, and is an integral part of the Final Plan packet submitted to the city. Rec: pp. 241-270. . Both the Outline Plan and Final Plan were deemed complete by City Staff at the time of their submission. No credible issue exists concerning an "incomplete submittal" by Applicant. The Planning Commission carefully review this issue, and found it completely addressed. Prior to this point, Appellant Bullock needed to provide for the record countervailing engineering studies demonstrating that the proposed fully-engineered "cut-off drains" submitted by Applicant will not satisfy the drainage issue. However, Appellant Bullock has failed to provide any engineering data, and his alleged "Error 1" is unsupported by any credible or substantial evidence. D,\\ IS, III -\fl.'. S.\! -\lJoll BRlj){jj s& V1SSIH AProres~onal Corporation 515 EAST MAIN STREET ASHU'.ND, OREGON 97520 (541)482-3111 FAX (541)488.4455 Page -5- Council and Mayor, City of Ashland September 5, 2007 . Appellant Bullock's Alleged Error 2: Outline Plan Requirements for an Adequate Utility Plan and Storm Drain Plan to Handle Wetland Runoff Have Not Been Met. . Applicant's Rebuttal. . The drainage plan for the wetland runoff is addressed in the Final Plan. Again, a local Oregon-licensed professional civil engineering firm (Thornton Engineering of Jacksonville) has provided an engineered solution to handle wetland runoff. Rec: pp. 262-266. The proposed "cut off drains" and engineering solutions were found acceptable to Planning and Public Works Staff. . Again, Appellant Bullock does not submit controvert the engineering solutions designed by Thornton Engineering and approved by City engineering staff. . Appellant Bullock's Allegations that Applicant's Final Plan Fails to Address Warm and Over-Mineralized Water. · Applicant's Rebuttal. . The enhanced Wetland will serve to cool the water seeping from the springs which currently feed it. In the pool, the water is cooled by retention in the pool itself. Any water which leaves the site will be minimized, and will obviously be much cooler that the water which currently escapes the property - since no mitigating measures currently exist. The water coming from the spring is approximately 82 degrees as it surfaces, and cools rapidly thereafter. The natural spring water has been entering Bear Creek in some fashion for hundreds of years. The engineering solutions and D-\\ IS, 1I1\~'. S\l .\])())J HRIJHd" &. VIS",I Ii AProlesSlOnal Corporation 515 EAST MAIN STREET ASHLAND, OREGON 97520 (541)482.3111 FAX 1f>41)488-44S5 Page -6- Council and Mayor, City of Ashland September 5, 2007 detailed designs submitted will sufficiently mitigate the issue. · Appellant Bullock's Alleged Error 3: Pedestrian Path Does Not Meet the Tree Commission Requirements as Outline Plan Required. · Applicant's Rebuttal. . Appellant Bullock alleges that Applicant has not provided detailed enough information on how the public path will pass under the existing trees without damaging them. He also states that the design was never reviewed by the Tree Commission and therefore should not go forward to the Planning Commission until the Tree Commission reviews it. Applicant is providing alternative paving under the trees, to maintain good air and water penetration. Applicant has a professional landscape architect, who has provided detailed information ensuring protection of the trees when work commences within the tree protection zone. Applicant's professional landscape architect is confident Applicant can construct this path and protect the trees. The plan, with the path in its current location, was reviewed by the Tree Commission at Outline Plan. The Tree Commission approved the plan, and the location of the path. The condition of approval at Outline Plan was that Applicant would follow the recommendations of the Tree Commission. The condition does not say that the Tree Commission must review and make new recommendations in connection with approval of the Final Plan. Applicant has already met the Tree Commission's Outline Plan recommendations. [),., \ I". IIi \1(''. S,\[\i)nll HIlI]J{,j" & VI,,";] R AProfessioJ1al COfpofallOr 515 EAST MAIN STREET ASHLAND. OREGON 97520 (541)462-3111 FAX (541)488-4455 Page -7- Council and Mayor, City of Ashland September 5, 2007 . Appellant's Alleged Error 4. Upgrading of Streets . Applicant's Rebuttal . Appellant Bullock claims that it is inadequate for the applicant to say they will participate in an LID and that a narrative assertion of action is not adequate - physical drawn plans of the applicant's intention are required. In an attempt to provide readable documents, things like a sidewalk that extend for hundreds of feet are often left off a plan, so that the more detailed aspects of the plan are at a readable scale. In this case, Applicant will extend sidewalks on both Randy and Otis Streets to Laurel, and merely left the redundant drawing of those sidewalk extensions to end with the rest of the visual plan. This is a common graphic decision for the purpose of clarity. The Appellant also states that the Applicant stating she is willing to participate in an LID is not enough. This is covered in previous legal memoranda submitted in the record, and is not repeated again here. Applicant does not have the option of signing LID documents because they do not exist. This planning action may not be legally held hostage for the purpose of changing the way that LID's are enforced. Applicant has met the current standards and practices available. . Appellant's Alleged Error 5: Water Permit Condition. . Applicant's Rebuttal: . This is handled in the Record, p. 116. n\\I". IIJ\R'. S\[-\Il<lIJ BfllIHd" & ,'I"SiR AProfeS510fl<ll Corporation 515 EAST MAIN STREET ASHLAND. OREGON 97520 (541) 482.3111 FAX (541)488-4455 Page -B- Council and Mayor, City of Ashland September 5, 2007 · Appellant's Alleged Error 6. Application Not Properly Signed. . Appellant Bullock alleges that the application was void because the signatures of the owner and the applicant were not legal. Devian Aguirre is the legal agent for the owner, she can legally sign the application as both applicant and agent. Appellant's Alleged Error 7: Plan Improperly Delegates Quasi-Judicial Authority. . No shift in quasi-judicial authority is present. . Final Plan approval is typically a Staff decision under the ALUO, which was a legislative ordinance enactment by the City. . Many Cities delegate their quasi-judicial authority to an appointed hearings officer, who handles appeals from the appointed Planning Commission. This is an non-issue. · Appellant's Alleged Error 8: Ex Parte Contact. . Applicant's Rebuttal. . Appellant's position does not comport with Oregon law. Sincerely, DAVIS, HEARN, SALADOFF, BRIDGES & VISSER Chris Christian E. Hearn, OSB # 911829 D\\ IS. liJ \1<'. S\I\i>rJ11 BHIIH,j s& VIS"II, A Professional Corporalion 515 EAST MAIN STREET ASHLAND. OREGON 97520 (541)482.3111 FAX (541) 488-4455 For additional information, please see the August 21, 2007 Council Communication and attachments. CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dept.: Approval: PERF Report Update September 18, 2007 Primary Staff Contact: Police E-Mail: Secondary Contact: Martha Benne Estimated Time: Terry Holderness Holderness@ashland.or.us 20 minutes Statement: The Police Department has developed an implementation strategy and time line for implementing the recommendations made by the Police Executive Research Forum following an audit of the department in 2006. Staff Recommendation: Staff recommends that Council direct the Chief of Police to continue implementing the recommendations of the PERF report as indicated in the attached timeline and with the modifications discussed in this report. Background: The purpose of the recommendations set forth in the PERF report were to update some policies, especially those related to the use of force, and to develop policies and procedures to institutionalize community policing in the City of Ashland. The attached time line shows those recommendations that have been completed and projected completion dates for the majority of the recommendations that have not been completed. The time line shows that it is the intention of the Police Department to implement the majority of the recommendations made in the PERF report during the next twelve months. Many of the action items on the time line are being placed where they are due to their relationship to other items that need to be completed first. For example a job specific evaluation process that is based on an Area Commander system to institute community policing cannot be effectively developed until a determination is made as to what each employee's responsibility is under that system. Many of the recommendations are dependent on completion of department wide training in Community Orientated Problem Solving, which was not completed until late August. Some action items are dependent on hiring of employees that has been delayed until January of next year due to budget issues. Several of the action items on the chart were not specifically recommended in the PERF report but department staff feels that they are consistent with the goals of recommendations made in the report. For example: · The PERF report does not specifically recommend the development of a training plan but a forrnal training plan will help institutionalize all of the recommendations made in the report related to training. · The PERF report did not specifically recommend a school resource officer but talked about the need for the department to improve relations with teenage members of the community and department staff feels that an SRO program is the most effective way to accomplish that goal. Page I of4 CC-PERF update ~.. ...11 CITY OF ASHLAND . No mention was made in the PERF report of the specific need to conduct comprehensive leadership training or develop a corporal program but both are attempts to improve department wide accountability which is critical to implementing the changes recommended in the report. Each item on the time line has the number of the PERF report recommendation that is related to that action item. Changes from the PERF report. The department is recommending making several significant modifications to the PERF report recommendations. The most significant modification to the recommendations made in the PERF report is the change from a Neighborhood Policing model recommended by PERF to an Area Commander system. Most police departments that have effective community policing programs use one of these two policing models. There is no general consensus in the industry that one system is superior to the other, only that each jurisdiction should use the system that best fits their specific needs. The system picked then becomes the focus of community policing and problem solving efforts in that community. After evaluating the strengths and weaknesses of both systems police department staff is recommending the use of an Area Commander program for the City of Ashland. Under this system instead of assigning all patrol officers to be responsible for community policing and problem solving efforts in one of eight beats in the City, as recommended by PERF, each patrol sergeant will be responsible for coordinating community policing and problem solving efforts in one of four geographic areas. The very first recommendation in the PERF report was immediately to change the departments' mission, vision and values statement. The Police Department is recommending waiting on this recommendation until all employees have had training in problem oriented policing and until the area commander program is in place. This will allow the area commanders to identify community members that are interested in being involved in the process and make sure that every area of the City of Ashland is represented in the process. The PERF report made some specific recommendations regarding staffing of patrol shifts. Those recommendations were based on all officers working a traditional five day forty hour work week. Since Officers are now working a four day forty hour work week those recommendations no longer apply. We have modified staffing levels to be more consistent with our work load. As soon as we are able to work with the dispatch center to get regular reports on response time and proactive patrol time we will reevaluate our staffing levels using that data. Recommendation 8 in the PERF report called for changing the method used in determining when officers receive step increases in pay. Since the officers have more than two years remaining in a three year contract this issue needs to be evaluated and addressed when the officers' current contract expIres. Other Significant Issues: Tasers: The PERF report recommended that the department's taser policy and training be updated and that all officers be issued a taser. While tasers are still controversial and have been misused in Page 2 of4 CC-PERF updale r.l' CITY OF ASHLAND some areas there is very little evidence that a taser when properly used has even been responsible for death or serious injury. No use of physical force is ever completely safe and there is some evidence that use of a taser may pose a risk to people with certain preexisting medical conditions. Even though that evidence is far from conclusive, policy on the use of a taser should be based on the assumption that use of a taser does in fact pose a risk to certain people until that assumption is proven to be false. The department has developed a new policy and will train based on that assumption. There is also evidence that when properly used a taser reduces the risk of injury to both suspects and officers involved in violent confrontations. Even when someone has one of the preexisting medical conditions that may be impacted by the use of a taser it is generally safer to both that person and officers involved in the arrest to use a taser rather than other aggressive forms of force. It is always safer for a suspect when an officer uses a taser rather than deadly force. All tasers keep a digital record of the time and date of each activation. The new model oftaser can be equipped with an optional audio and video recorder. When so equipped as soon as the tasers' safety is disengaged the recorder is activated. The department has money in our budget to replace all of our existing tasers with the new model taser equipped with the audio and video recorders. The new taser policy requires that any time a taser is used that recording will be down loaded and reviewed to determine if the usage of the taser was within department policy. Downtown Contact Station: While there is no specific recommendation in the PERF report that a contact station be placed in the downtown area police department staff believes that a contact station is consistent with the main goals of the PERF report. Placing of contact stations in areas of high traffic is a standard community policing strategy used around the country. A contact station improves public accessibility to police services. In short it is assumed that placing police recourses in locations where people are already going to be in large numbers will make it easier for those people to access those recourses and services. The PERF report also made reference to the perception by some members of the community that there is a problem of crime and disorder in the plaza area. The number of people arrested for sales of illegal drugs in the plaza over the past several months would certainly tend to show that there is in fact a problem in the plaza area. People are much less likely to violate the law if they think a police officer is actually in an area or likely to be in an area. A contact station on the plaza would increase the amount of time officers are actually on the plaza by giving them a place to conduct routine business such as report writing, interviews and phone calls on the plaza instead of at the main station. It would also be a visible reminder to people who might otherwise violate the law that an officer might be in the area even when they are not. The Police Department has been approached by a private business owner who has offered an office site in the downtown area that department staff feels would be ideal for a contact station at a very reasonable rate. The property owner has asked that the location not be made public until the City is ready to make a commitment to leasing the property. The property in question is large enough to maintain a front desk, a separate interview area, an area where officers can write reports and has assessable parking. Most importantly the location is very visible from and has great visibility into the plaza area. To protect the privacy of the person offering the lease the exact location of the building will be disclosed to the Council in closed session. Page 3 of 4 CC.PERF update ~.l' CITY OF ASHLAND Another option for a plaza contact station would be to place it in the existing City Hall building. The City will be remodeling the building in the near future and could placing a contact station in the City Hall could be done as part of the remodel. The only area of the City Hall building that would fill the department's needs for a contact station would be the area presently used by the recorders office. While the lower level of the building is already crowded it should be possible to move some employees into other areas of the building or other city facilities to free up that space. Of the two options Police Department staff is recommending that the location belonging to the private party be leased. That location offers better visibility and more convenient parking then the City Hall location and will not cause crowding issues in the existing City Hall building. The: original offer included a very favorable rental rate to encourage to department to utilize that site. The department recommends paying full market price for the lease, instead of the discounted rate to reduce any appearance of a conflict of interest. Related City Policies: None Council Options: The Council may direct the Chief of Police to implement the recommendations of the PERF report as recommended in this report or may direct the Chief to reconsider any of the action items presented or defer acceptance (take no action) awaiting further information or clarification. Potential Motions: I make a motion to direct the Chief of Police to go forward with the implementation of the recommendations of the PERF report as recommended by staff and enter into negations to secure a lease for a police contact station for the purposes specified. Attachments: New Police Department organizational chart Timeline for implementation of action items Taser policy Page 4 of 4 CC-PERF update ~~, ~~ ~I mr -I ~Ol ~~ ":I ~.., "1' ~i ~i ~- ~ ftiii. ~. ~ -f1f -I -y "'if ~~ -It ~f ~o IF ~ "f'I1 ~;. a~ I i ';;~{', '~ !t - gl ~ g ~f !J)~ ~o J ~~ ~ ~ N Q Q ..... G~;; ~;!I _Iif ~ -, j i "I I"' il: ~~ 1 B! l' I' . . t ~f ii!7, -~ il , ,~,,;;3 -, ~I: ]> III ~ AI ::l Q. "D o - ~. C :;9 i~i. III ~ :3 (\l = - w ~ w :!1 rn PERF Report Time Line Projected Accomplishment Dates Recommendation 1: Police Chief as a strategic leader. Accomplished Chief Holderness has set up committees and time lines for the task force to implement the PERF Report. Update APD vision, values and mission statement March 1,2008 Recommendation 2: Restructuring of the department Accomplished Promotional process for support commander January 1,2008 School Resource Officer implementation June 1, 2008 Verify qualifications for positions October 1, 2007 Set up roles and responsibilities December 1, 2007 Recommendation 3: Gathering statistical data April 1, 2008 Divide city into areas Accomplished Recommendation 4: Recruitment/Hiring Process Accomplished Review of Recruitment/Hiring Process June 1,2008 Promotional Process November 1, 2007 Review of promotional process June 1,2008 Recommendation 5: Adoption of Police Training Program June 1,2008 Problem Oriented Training Accomplished Leadership Training January 2008 Training Plan for all employees July I, 2008 Recommendation 6: Area Command set up January 1, 2008 Recommendation 7: Performance appraisal system created Recommendation 8: Career Development plan Recommendation 9: Weekly informationals by Chief Frequent/Open communication by Chief to City Administrator Set up Contact Station Reinstitute Citizens' Academy Update website Dissemination of Policy/Procedures Recommendation 10: Update employee disciplinary process Recommendation 11: Purchase oftasers/update of policy Critical Incident Management Training Use of Force panel review Review Use of Force policy/Lexipol April 1,2008 February I, 2008 Accomplished Accomplished November I, 2007 April 1, 2008 Accomplished Accomplished January I, 2008 December 1, 2007 Accomplished Accomplished March 1,2008 T ASER POLICY 3.021 PURPOSE The purpose of this policy is to initiate the use of the Taser electronic immobilization device and Taser cam audio and video recorder by the Ashland Police Department. The Department has procured the Taser and Taser cam as a less-lethal means of subduing physically combative or threatening persons who demonstrate a willful intent to cause physical injury to themselves, other persons or officers attempting to take them into custody, so they may be taken into custody without harm to themselves other persons or to the officers involved. The Taser should be used in accordance with Departmental General Order 3.01, Use of Force. 3.022 TASER USE REQUIREMENTS The Taser may only be used by authorized trained personnel to subdue, control or take into custody a person whom the officer reasonably believes: 1. Creates an immediate, credible threat to the physical safety of the officer, another person, or the individual himself/herself; AND 2. Unless prompt action is taken to immobilize the person there is a substantial likelihood the situation could lead to the death or physical injury of the officer, another person, or the individual himself/herself. The phrase "the situation could lead to" means that the officer does not have to wait until lethal force would be justified. At the same time, this language is not meant to be stretched to cover anything which has the potential for getting out of hand. The situation must involve an immediate and unmistakable threat. "Physical injury" is used here as that term is defined in the Oregon Revised Statues section 161.057(7)1 and means impairment of physical condition or substantial pain. The potential "physical injury" cannot be something as minor as, for example, a petite person slapping, pushing, or scratching a much larger office r. In addition officers should consider the following when using the Taser: . The optimum range for firing the Taser is between four to twelve feet. . The probes are not to be intentionally aimed or fired at the head, neck or genitalia. . A warning should be given to a person prior to activating a Taser unless to do so would place any other person at risk. . When activating a Taser officers should use it for one standard cycle then stop and evaluate the situation. . Loose cartridges should not be carried in the pocket as they can be discharged by static electricity. . When possible, have adequate alternative means of back up force available. . The Taser shall be carried in a department approved holster and worn opposite the officer's duty weapon. 3.023 FURTHER LIMITATIONS ON TASER USAGE Even if otherwise authorized under section 3.022, of this policy use of a Taser is further restricted in the following circumstances: . A Taser may not be used on persons who are already handcuffed or persons who are passively resisting or resisting by bracing or stiffening parts of their bodies unless there is a reason to believe that the person is in possession of a deadly weapon or has some other means of causing substantial injury to themselves or others. The facts that justified the officers belief that the handcuffed person or persons who are passively resisting, were in possession of a deadly weapon or had some other means of causing substantial injury to themselves or others needs to be specifically addressed in the officer's report. . No more than one officer should activate a Taser against a person at a time. . The Taser shall not be used on one person more then three times (three standard 5 second cycles) during one incident. . That a subject is fleeing is never the sole justification for use of a Taser. Severity of the offense and the threat of injury to the subject or others should the subject escape should be considered. . Tasers shall not be used when a person is in a location where a fall may cause substantial injury or death. . Tasers shall not be used in the known presence of combustible vapors and liquids or other flammable substances. . Tasers shall not be used against subjects in physical control of a vehicle in motion to include automobiles, trucks, motorcycles, ATV's bicycles and scooters. . Tasers should not be used on pregnant women, elderly persons, young children (who are obviously less then 12 years of age), and visibly frail persons. · The Taser should be primarily used in the "Probe Mode". The Taser should only be used in the "Drive Stun Mode" when an officer is too close to a person to use the "Probe Mode" and the officer is attempting to create a physical separation from that person during a struggle. Exceptions that would permit the use of a Taser in these circumstances are: . The person is armed with a deadly weapon. . The person cannot safely be controlled with other available options. . The officer using the Taser would otherwise be justified in using deadly fo rce. 3.024 TRAINING Initial training of personnel in the correct use and care of the Taser shall be the responsibility of the Training Sergeant or Lieutenant. No member of this Department will be authorized to carry or use the Taser without proper certification from Taser International (with a valid certificate) and demonstrated proficiency on department policy. That training shall include a review of medical evidence related to potential dangers of Taser usage on persons with preexisting medical conditions. After the initial training, all Taser operators will be required to attend a recertification class every two years. 3.025 TASER OPERATORS The Taser may be carried by officers who have completed an orientation course on its use. Upon availability, Tasers will be issued to authorized operators at the completion of the orientation course. The Tasers can be carried by those operators as long as they maintain current training certification. 3.026 TASER TACTICS Although the Taser has been proven effective, officers should when possible, obtain sufficient back up prior to using the device. The deployment of back up officers is essential for the containment of the suspect. When deployed., back up officers should use caution and avoid standing within range of the Taser. If the Taser is effective, the suspect will become temporarily incapacitated for a short period of time. When this occurs, back up officers should move in upon command of the Taser operator to control and handcuff the suspect. No officer should remove and display the Taser from its holster in one hand, while displaying a firearm in the other hand. 3.027 REPORTING USE OF THE TASER All discharges of the Taser shall be documented in the police report of the incident. If the Taser is discharged by an officer other than the primary officer on the report, a supplemental report will be completed. The officer documenting the incident shall include the Taser serial number within the body of the report. Photographs will be taken of the area the Taser probes made physical contact and or where a touch stun Taser contact was applied to the suspect. The photographs will be booked into evidence. Taser cartridges that come into contact with the suspect when deployed will be booked into evidence. The officer booking the cartridge will be sure to remove the probes and place them in an approved "Sharps" container, prior to booking the cartridge into evidence. The officer deploying the Taser shall notify an on duty Sergeant or OIC as soon as reasonable after an incident occurs in which the Taser was deployed. 3.028 MEDICAL TREATMENT When possible, AFR shall be notified when officers respond to calls for service in which it is anticipated that a Taser may be activated against a person. All persons who have been subjected to the Taser shall be treated as follows: . Once safely in custody, all subject(s) who have had a Taser used on them shall be checked in the field by a paramedic from AFR. . All persons that have been subjected to Taser activation should be monitored regularly while in the department's custody, even if they received medical care. . If the Taser probes penetrate the skin, the puncture sites shall be evaluated and, if necessary, medical attention shall be rendered by the AFR. . If the probes are firmly embedded in the skin, they shall be removed only by the emergency room staff. If the subject requires hospital attention, the transporting officer shall obtain medical clearance from the emergency room treating physician for transportation in a police unit from the hospital to a booking facility, as well as a medical clearance for booking in the County Jail system or an approved psychiatric facility. Used Taser probes should be disposed of in a "Sharps" container by the officer or the contract nursing service. Officers in the field should place the used probes in a manila envelope to avoid contact with the probes. The manila envelope should then be placed in an approved "Sharps" container. 3.029 LOADING AND UNLOADING THE TASER When loading and unloading the Taser in the police building, the Taser shall be loaded and unloaded with the Taser on safe, in the patrol equipment room to avoid the potential for accidents. 3.030 UNAUTHORIZED USAGE Any use of the Taser device other than to restrain a suspect will be a violation of the Ashland Police Department General Order 3.01, and will not be in compliance with this policy. NOTE: The exception to this is in controlled training classes approved by the Chief of Police or a Division Commander. 3.031 TASER CAM OPERATION Taser operators are now able to document their Taser usage via the Taser Cam. The Taser Cam makes both audio and video records and keeps in its history up to ninety minutes of records. The Taser Cam is activated when the safety lever is turned up to the "armed" position. The Taser Cam turns off when the safety is turned to the down "safe" position. The Taser Cam has infra-red capabilities and can record in almost total darkness. All of the videos will be black and white. When using a Taser equipped with the Taser Cam, Officers should be mindful of the placement of the camera lens and try to avoid covering them during deployment, if the camera is covered the C.I.D. will display "88" until it is uncovered. The Taser Cam shall not be used to record suspect's actions and document the incident unless the deployment of the Taser is authorized under this policy or exigent circumstances exist. If used for documentation purposes, officers should remove the T aser leads to avoid accidental discharge of the probes. 3.032 DOWNLOADING OF TASER AND OR TASER CAM Downloading of the Taser or Taser Cam will be conducted by trained personnel after each deployment in the field. Only pertinent records of the incident will be included with the officer's report. The portion of the records containing the deployment and one record prior to and immediately after of the incident will be included to show that no other deployments occurred during the incident. Only video of the actual incident will be included with the report, no video of prior incidents or incidents that occur after will be included. 3.033 REVIEW OF T ASER USAGE A copy of the report and all documentation including the download from the audio and video recording will be forwarded to the Use of Force Committee made up of the Deputy Chief, the training Lieutenant or Sergeant and the department's use of force instructor. That committee will review all of the reports and recordings of the incident and will make a determination if the Taser usage was within department policy. The report along with the findings of the Use of Force Committee shall then be forwarded to the Chief of Police for review. September 18, 2007 Subject: Downtown Police Contact Station To the Ashland City Council, I would like to speak in support of the downtown police contact station. The characterization of this as an effort to establish a "military zone" based on "bigotry and intolerance" --as suggested by one of our city councilors-- is a disservice to our police department and to our city. Regarding the so-called survey of downtown businesses, I would raise serious qUl~stions about the methodology, the sampling, and most of all the interpretation of the data. As anyone who's been involved with survey research will tell you, interpretation of the data can be highly subjective. The reasons I would support a downtown police contact station come from the experience ofliving here when the police department was downtown. . It never felt like a police state, no one lost their free speech rights, there was more civility and it just generally felt like a more welcoming place to be. . Our local citizens and our visitors were not being harassed, and neither were our young people. Indeed my daughter was one of the "plaza rats" for awhile. . I would also have to say I saw fewer signs of vandalism. Lincoln's head was intact and we had operable Lithia water fountains on the plaza. I sincerely hope the city council will choose to act in the best interest of the broader community, and not be swayed by what appears to be arguments of youthful rebellion more than anything else. Sincerely, Suzanne Frey 1042 Oak Knoll Drive Ashland, OR 97520 CITY OF ASHLAND Council Communication Meeting Date: Department: Secondary Dept.: Approval: Economic Development Strate~y September 17, 2007 Primary Staff Contact: Commu 'ty Development E-Mail: Ad . inance Secondary Contact: Estimated Time: David Stalheim stalheid(al,ashland.or. us Lee Tuneberg 60 minutes Statement: This is discussion with Council to review options and strategies to development an Economic Development Strategy for the city. Staff Recommendation: Staffrequests 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 themes emerged during the recent public process for review of the Economic Opportunities Analysis (EOA) as foremost elements of a 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. . Preservation and enhancement of the qllali(r of life · Crelltioll of a diverse and sllstainable economy . Improved coordination & processes of ci\'ic and government sectors Page 1 of6 CC - Econ Dev Strategy 9 17 07 v2 .doc ~~, CITY OF ASHLAND What are some of the major tasks that need to be accomplished in forming an Economic Development Strategy? I. 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. l. Determine timing of effort in coniunction with 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. Ouestions and Options to Council: I. 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 outcomc? Staff Recommendation: Staffrecommends that the City move ahead with the Economic Development Strategy immediately, and strive to minimize duplication or confusion with the Page 2 of6 CC - Econ Dev Strategy 9 17 07 v2 .doc ~~, 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 recommendation, 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 Questions and Options to Council: I. 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 Development 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, with members who represent the following institutions and interests: Page 3 of6 CC - Ecan Dev Strategy 9 17 07 v2 .doc r~' CITY OF ASHLAND o City of Ashland, Southern 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 alternates 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 Council action on adoption of the strategy 3. Determine staffing 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 intern, 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 allows for implementation of strategies . Cons: Page 4 of6 CC - Econ Dev Strategy 9 17 07 v2 .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. During 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 tax es . 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 ofraising 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 I % tax could generate $223,000. Of that additional revenue, $156,000 would have to go to Tourism per the State's definition and $67,000 could be used for other purposes. Combining the one year tax rate of $0.045 and one year of an added I % 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 will benefit from this project but the recent budget process demonstrated the difficulty the City will have with this funding approach. Page 5 of6 CC - Econ Dev Strategy 9 17 07 v2 .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. Staff has 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 $0.045 property tax rate) and maintaining any staff added. Related City Policies: City Council goal: "Develop a City-led Comprehensive Economic Development Strategy with an Emphasis on Local Economy, Diverse Population, Risks of Over-Reliance on Single-Industry, and Living Wage." City Council goal: "Complete a City-wide Visioning Plan." City Council goal: "Complete Downtown Planning Process." Council Options: See Discussion aboye Potential Motions: a. Direct staff to solicit members for Economic Development Task Force and: b. Solicit proposals from consultants to prepare an Economic Development Strategy, c. Prepare a job description for staff assistance, begin recruitment and fill position. d. Direct staff to develop a clear timeline for development and implementation of the strategy, with the goal to start as soon as possible. e. Direct staff to return to Council with any necessary budget adjustments to accomplish the decisions made above. Attachments: Timeline Page 6 of6 CC - Econ Dev Strategy 9 17 07 v2 .doc ~~, u .~ ~ c_ U oc:.....>- til~.E..c~ Q)CL>'5Q) & ~ ~li ~ eii)~.g1? a...ClU)<(m ~ C) Q) - ~ ~ - en - Q) c: Q) c: .- E - Q) a. E 0 .- - I- Q) '" > ~ '" ~ " Q) ~ ;; "~ ~ ID C ~ *~ .~ .!:! C '" '" >:0 ID ~ (J U'" lr~ .- E 0 c: 0 (J w c "li '" '" "5 ro 1;: ~ >- 0 ~ c 0 8 ~ ~e ~ * in "~ ~o ~ :J; <<~ << '" o o ~ C ID E to" ro~ U5.s c B ro &5 .~ ;t::j$ cS.g~ "" :0 ~ ~ " "~ ~ ;; ID lr ~ " C :0 a E ~ '" ~ '" ~ "5 ~ ~ ? m ~ ro c >- ~ 0 ID ";; ~ u ~ 0 '" ~ W ID ~ ID ID c .!: '5 > ~ " ~ 0 " .g-~ " u 0 0 ~ " " u ~ <DID "' S "'''' CITY Of ASHLAND Council Communication Transient Occu anc Tax Rate Increase and Use of Proceeds Martha Benne Primary Staff Contact: E-Mail: Secondary Contact: Estimated Time: Lee Tuneberg tuneberllal,ashland.or. us Meeting Date: Department: Secondary Dept.: Approval: September 17,2007 Administrative Se ices 60 minutes Statement: Council requested information on the potential of increasing the Transient Occupancy Tax rate and opportunities to use the additional revenue generated from the change. Staff Recommendation: Staff requests that the Council review the information provided and give direction to staff on how to proceed. If an increase in the TOT rate is to be considered, staff recommends that Council hold meetings and discussions to answer questions and resolve any issues from the community, in general, and specifically with the lodging industry. The grant agreement with the Chamber of Commerce includes a requirement that the Chamber assist the City with this work. Council should also work with the Community to identify desired uses of these funds. Background: Staff provided research and other material to Council in February and March relating to the City's Transient Occupancy Tax (TOT) rate, how it compares to other cities, the revenue generated by the tax, how it is used and what could be the impact if the rate was changed. February 6 and March 6, 2007, Council communications are attached. At those earlier meetings it was identified that the City's rate is low when compared to other similar communities. Discussions included estimatt;s ofthe added revenue that could be generated and to what purpose those monies would be used. State requirements for use of proceeds from new taxes helped to identify, in general, what could and could not be done. Altogether, the information provided and ensuing discussion prompted the request for a more specific consideration of an increased tax rate. Resolution 2007-08 identifies how current revenue is distributed and establishes goals for its use. Briefly, the city must spend 14.23% of TOT revenue proceeds on tourism from the existing 7% tax. The resolution identifies what amounts are allocated to the Chamber of Commerce (CoC) and Oregon Shakespeare Festival (OSF) and for what purposes. It also identifies what amount will be granted to applicants during the budget process, general guidelines and goals. In FY 2006-07 the City received over $1.5 million with a little over $1.0 million being treated as general revenues (no specifically designated purpose) to the General Fund. At this level of revenue, about $214,000 must be spent on tourism. However, the resolution is based upon budget estimates and called for $224,123 in total for tourism in FY 2007-2008, with $116,700 going to OSF, $85,330 to CoC and the remainder of $22,093 intended to be spent by smaller grant applicants. An additional Page I of 4 CC - TOT Discussion 9 17 07 v3 r.t. , CITY OF ASHLAND annual amount of$169,740 was allocated from the proceeds to CoC for Economic Development projects. We allocate monies based upon the budget thus increased actual revenues would become General Fund resources but shortfalls could also reduce the support to that fund. Using the amounts budgeted for FY 2007-2008 an additional 1 % on the tax would generate $225,000 more revenue. State requirements would allocate $158,000 to tourism leaving $67,000 for other uses. The following table demonstrates the total revenue and allocation impact of potential increases: Economic and Cultural Grant Allocation With Tourism Calculation Per Budget Plus Additional Tax Current Additional Tourism Calculation: 7% 1% 2% 3% Hotel/Motel Tax Revenue (estimated FY 08) $ 1,575,000 $ 1,575,000 $ 1,575,000 $ 1,575,000 Per Resolution 2007-08 & State 14.23% 14.23% 14.23% 14.23% Base Tourism Requirement per State $ 224,123 $ 224.123 $ 224,123 $ 224,123 Additional Revenue from new tax $ 225.000 $ 450,000 $ 675,000 Tourism requirement per State on new revenue 70.00% 70.00% 70.00% Additional Tourism dollars $ 158,000 $ 315,000 $ 473,000 Total Amount to be Spent on Tourism $ 224,123 $ 382,123 $ 539,123 $ 697,123 Tourism Amount Allocated per Budget Chamber to promote tourism $ 85.330 $ 85,330 $ 85,330 $ 85,330 OSF to promote tourism 116,700 116,700 116,700 116,700 DirectTourism Allocation per Resolution 2007-08 202,030 202,030 202,030 202,030 Additional amount to be spent on Tourism 22,093 180,093 337,093 495,093 Total to be spent on Tourism State requirements $ 224,123 $ 382,123 $ 539,123 $ 697,123 The table demonstrates that increasing the TOT rate three additional percent would require the City to increase tourism spending from a minimum of$224,123 to a new minimum of$697,123. This would require $495,093 to be spent internally and/or awarded ex1ernally in addition to the $202,030 direc1ly awarded to CoC and OSF. A conflict may exist between the Ci1y's resolution and State requirements for added 1ax revenue in that a "shift" is precipitated by raising the TOT rate, causing a larger percentage of the granted monies to go toward tourism than to non-tourism activities. The following table demonstrates that the combination of the two tends to shift money in the one-third portion of the TOT revenue used for Economic and Cultural granting program from non-tourism activities to tourism activities. This can be seen in to places on the table. The first is the drop from $300,777 to $52,177 on the line identifying Amount Available for N on-Tourism Activities. The second place is demonstrated when the decreasing amount is matched with the current amount awarded to the Chamber by Resolution 2007-08. The amount available to others for non-tourism becomes negative when the tax rate is raised 2% or 3% and Resolution 2007-08 remains unchanged. Page 2 of 4 CC - TOT Discussion 9 17 07 v3 r.l' CITY OF ASHLAND Impact On Resolution 2007-08 When Tax is Raised Grant Calculation Combining State & City Guidelines: Total TOT Revenue Current 7% 1% Additional 2% 3% $ 1,575,000 $ 1,800,000 $ 2,025,000 $ 2,250,000 Total Grant(1/3 of revenue) Per Resolution 2007-08 $ 524,900 $ 599,400 $ 674,300 $ Total Amount to be spent on Tourism 224,123 382,123 539,123 Amount Available for Non.Tourism Activities $ 300,777 $ 217,277 $ 135,177 $ Please note the shiff from Non-tourism to Tourism expenditures caused by State requirements and Resotution 2007-08. 749,300 697,123 52,177 Non.tourism Grant Money Direct Economic Development Grant to Chamber (Res. 2007.08) Available to other Applicants for Non.tourism Activities $ 300,777 $ 217 ,277 $ 135,177 $ 52,177 $ 169,740 131,037 $ 169,740 47,537 $ 169,740 (34,563) $ 169,740 (117 ,563) Council would need to consider this impact and could revise Resolution 2007-08 to deal with it. Even if unchanged, there is an estimated additional $67,000 generated for other activities in the General Fund by an additional I % tax. Uses of Proceeds The table shows that potentially $67,000 to $450,600 could be generated or "freed up" for other General Fund activities. The "shifted" money could be considered if it meets Council goals but, unless directed otherwise, staff would focus on how to employ the "new" revenue from a tax increase. That amount is in the $67,000 to $202,000 range depending upon what rate increase was approved and implemented. Impact On Resolution 2007.08 When Tax is Raised General Fund Impact from TOT Revenue at various levels General revenues from TOT 7% Rate General revenues from Additional TOT rate $ 1,050,100 $ 1,050,100 $ nla $ 67,000 $ 1,050,100 $ 1,050,100 135,000 $ 202,000 The City would need to actively engage and fund tourism activities to expend at the levels identified above. There has been significant reliance on both CoC and OSF to meet those requirements but other efforts would probably be needed. Council could ask the Chamber to assist in developing programs in addition to the Visitor & Convention Bureau (VCB), OSF and small grant applicant activities. If increased tourism expenditure requirements as identified above are satisfied, the $67,000 to $202,000 can be used for any program or activity identified by Councilor it could remain as a general resource to the General Fund. This could help with some of the diminishing revenues in the General Fund due to changes in the building industry and Federal limitations on ambulance service revenues. However, the current TOT revenue stream already provides over $1 million in general resources that Page 3 of4 CC. TOT Discussion 9 17 07 v3 r.l' CITY OF ASHLAND has been used to balance the General Fund services to the community and that need remains in the near future. At this time the City is considering Economic Development programs in addition to what is being done through the Chamber. This effort may entail using CoC and/or other grant applicants even more in lieu of or in conjunction with hiring consultants and/or staff to accomplish new or established goals. Allocating funds toward Economic Development could play an important role in impacting future resources to assist with the health and welfare of the community funded through the General Fund. Making a Change The current Transient Occupancy Tax rate was established by ordinance and last revised in May of 1992. If Council should choose to revise the tax rate the City would need to follow the ordinance revision process including legal notice, hearing, first and second reading. As noted above, prior to holding public hearings, staff recommends meeting with interested parties regarding the tax rate, any increase and how the additional monies may be used. 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." Council Options: Council can: a. Direct staff to return to Council with any additional information b. Direct staff to schedule public meetings and hearing to take input on changes to the TOT tax and use of proceeds including allocations identified in Resolution 2007-08. c. Take other actions determined through discussion. ~kwi Potential Motions: "1I1~~ ~ I make a motion directing staff to schedule a publi)~~g at a future Council meeting to gather input from the public on an increase in the Transient Occupancy Tax rate, identifying how additional proceeds will be used. Attachments: Ordinance 2674 dated May 20, 1992 Resolution 2007-08 dated March 23,2007 FY 2007-2008 Economic and Cultural Development Grant Allocation with Tourism Calculation Council Communication dated March 6, 2007 Council Communication dated February 6, 2007 Page 4 of4 CC - TOT Discussion 91707 v3 ~.l' ORDJ:NANCE NO. .::t~7~ AN ORDJ:NANCE AMENDJ:NG CHAPTER 4.24.020 OF THE ASHLAND MUNJ:CJ:PAL CODE J:NCREASJ:NG THE TRANSJ:ENT OCCUPANCY TAX. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 4.24.020 of the Ashland Municipal Code is'amended to read as follows: "4.24.020 Tax Imposed. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of Bil! (~%) SEVEN (7\) percent of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator of the hotel at the time the rent is paid. The operator shall collect and record the tax into the record when rent is collected, if the operator keeps records on the cash basis of accounting, and when earned, if the operator keeps records on the accrual accounting basis. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator. (Ord. 1907, 1977; Ord. 202451, 1979) SECTION 2. Classification of the Fee. The tax specified in Ashland Municipal Code section 4.24.020 as set forth in section 1 of this ordinance is classified as not subject to the 1imits~of section lIb of Article XI of the Oregon Constitution (Ballot Measure ,No.5). SECTION 3. All fully paid room reservations received prior to April 21, 1992, for occupancy during July 1 through September 30, 1992, shall not be subject to the seven percent tax rate but shall be subject only to the six percent tax rate. The effective date of SECTION 1 of this ordinance shall be July 1, 1992. The foregoing ordinance was first read on the 5th day of Mav, 1992, and duly PASSED and ADOPTED this 19th day of May, 1992. ~,~, L P;d4?k~~ Nan E. Franklin city Recorder c;j SIGNED and APPROVED this o?Ctf4 day of Mav, 1992. ;;Z~~ ~atherine Golden Mayor d\cc\new.ord\transoc.ord RESOLUTION NO. 2007- 0'8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTEUMOTEL (Transient Occupancy) TAX AND REPEALING RESOLUTION 2004-32 THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. That the City Council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax. SECTION 2. The following are the goals which the Budget Committee is attempting to meet by granting money to applicants for: a) Tourism Promotion: 1. Attract someone who travels to Ashland from more than 50 miles away to attend an event. 2. Attract someone who stays the night in Ashland to attend an event. b) Economic Development: 1. Promote increased number, variety and size of employers. 2. Encourage wages at or above median wage. 3. Promote businesses that employ 5 to 100 people or is locally owned. 4. Encourage use of local resources. 5. Work with Southern Oregon University, especially for international commerce. 6. Discourage businesses that need water, that emit air pollution, or that create toxic waste. c) Cultural Development: 1. Increase the number, variety and size of cultural opportunities in Ashland 2. Support diversification of the local economy 3. Showcases local talent 4. Work with Southern Oregon University on cultural programs SECTION 3. Beginning in Fiscal Year 2007/2008, the City Council will appropriate thirty-three and one-third percent (33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development. The City of Ashland has determined that as of July 1, 2003, $186,657 or 14.23% of total Hotel/Motel tax revenues were expended on tourism promotion, as defined in Chapter 818 of the 2003 Oregon Laws, and will continue to be spent on tourism promotion increased or decreased annually consistent with the estimated TOT revenues budgeted. The minimum amount to be spent on tourism in FY 2007-2008 is $218,715. The amount to be allocated annually to Ashland Chamber of Commerce (COC) and Oregon Shakespeare Festival (OSF) for promoting tourism per the state definition shall be $85,330 and $116,700, respectively, adjusted each year by the amount of inflation or deflation established in the Budget process. An additional amount of $169,740, 1- 2007 TOT Expenditure Resolution Repealing 2004-32 final adjusted each year by the amount of inflation or deflation (increase or decrease in budgeted TOT revenue) established in the Budget process, will be granted annually to COC for economic development projects in cooperation with City staff. Any additional amount for tourism required by Chapter 818 shall be allocated to COC, OSF or other group during the budget process specifically for that purpose. The remainder of the monies budgeted for these grants may be allocated to grantees for activities fitting in any of the three categories set forth in Section 2 of this Resolution. By January 31 of each year each recipient of a grant greater than $2,500 for non- tourism programs or any amount speCifically intended for tourism per this resolution shall submit a report to the city council setting forth how the grant funds received were expended in furtherance of the goals set forth in Section 2. Grant recipients of $2,500 or less for non-tourism programs are required to report its use only when requesting additional money in a subsequent year. SECTION 4. The following guidelines and criteria are established for the Economic and Cultural Development Grants: a) Grantee shall be a 501 (c) non-profit agency. b) Grantee shall be a non-governmental agency. c) Grantee shall promote livability for the citizens of Ashland. d) The minimum grant proposal will be $2,500. e) The grant will benefit Ashland in regards to enrichment and activities of an economic nature. f) Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley. Monies granted are intended to be used for programs or service performed or provided within the City of Ashland or immediate areas. g) Irrespective of sub-paragraph 'b', the City of Ashland Public Arts Commission may apply for and receive funds. SECTION 5. Resolution 2004-32 is repealed upon passage of this resolution. SECTION 6. This resolution takes effect upon signing by the mayor. This r olution was read by title only in accordance with Ashl~99 Municipal Code ~2.0 90 duly PASSED and ADOPTED this;2t) day of ZIlVt* L_ ,2007. Barbara Christensen, City Recorder SIGNED and APPROVED this M.. day of ~ ,2007. ~ John W. Mor' on, Mayor 2- 2007 TOT Expenditure Resolution Repealing 2004-32 final City of Ashland Economic and Cultural Grant Allocation With Tourism Calculation 2008 Adopted Tourism Payment per month Hotel/Motel Tax Revenue (4% growth) $ 1,575,000 Per Resolution 2004-32 14.23% Minimum amount needed for Tourism $ 224,123 $ 224,123 1/3 of the proposed revenue $ 524,900 Additional Carryover from Prior Year' 2,619 Total amount budgeted $ 527,519 Amount Allocated: Per Resolution 2007-08 (3% inflation) Chamber to promote tourism $ 85,330 $ 85,330 $ 7,110.83 Chamber for economic development 169,740 14,145.00 OSF to promote tourism 116,700 116,700 9,725.00 $ 371,770 $ 202,030 $ 21,255.83 $ 9,725.00 Other Grants $ 155,749 $ 22,093 $ 224,123 , Please note that the City Council determined that any grant monies not awarded or returned from a grantee are rebudgeted for expenditure in the next fiscal year. CITY Of ASHLAND Council Communication Resolution of the City Council of the City of Ashland Reiterating its Policy of Relating the Expenditure of Monies for Economic and Cultural Development to the Hotel/Motel (Transient Occupancy) Tax and Repealing Resolution 2004-32 Meeting Date: March 6, 2007 Department: Administrative Services Contributing Departments: NA Approval: Martha Bennett Primary Staff Contact: Lee Tuneberg E-mail: tunebert@ashland.or.us Secondary Staff Contact: NA E-mail: Estimated Time: 45 minutes Staff Recommendation: Staff recommends Council either approve the attached resolution, re-establishing current allocations of transient occupancy tax revenues or change the allocations to begin the grant process for the 2007-2008 fiscal year. Statement: Goals and allocation of revenue is currently identified in Resolution 2004-32, which was passed in September 2004 with a sunset clause for the second ara ra h of Section 3 after three ears. Effectively, the budget process for FY 2007-2008 requires direction in how funds will be allocated in general, and specifically on how much is to be granted to the Chamber of Commerce and Oregon Shakespeare Festival, and for what purposes. At the February 6, 2007, meeting Council asked staff to bring back additional information on changes to the existing resolution in regards to goals for the tax revenue and allocations to the Chamber of Commerce, Oregon Shakespeare Festival and small grantees. As directed on February 6, staff will bring back a separate item within two months to allow Council consideration of raising the TOT rate. Council was reluctant to change the tax rate unless there was a plan for how the money would be used and still remain compliant with state guidelines. An increase in the tax rate will require a new ordinance to make that change. Background: Attached are the Council Communications from the study session on October 12, 2006, and Council meeting on February 6, 2007, which provide historical and financial information of this tax revenue and the granting process and history. City Council, grant applicants and the Budget Committee have asked for clarification over time and this is an opportunity to consider how tax revenue is allocated and what outcomes are desired. If Council wishes to increase the current tax rate of 7%, an ordinance process would need to be followed because Ordinance 2674 does not provide for changes to the rate by resolution. In February staff suggested the following expanded goals to assist in identifying what is meant in promotion in the three expenditure categories: ~~, Tourism: . Attract someone who travels to Ashland from more than 50 miles away to attend an event . Attract someone who stays the night in Ashland to attend an event Economic Development . Promote increased number, variety and size of employers . Encourage wages at or above median wage . Promote businesses that employ 5 to 100 people or is locally owned . Encourage use of local resources . Work with Southern Oregon University, especially for international commerce . Discourage businesses that need water, that emit air pollution, or that create toxic waste Cultural Development Proposed . Increase the number, variety and size of cultural opportunities in Ashland . Support diversification of the local economy . Showcases local talent . Work with Southern Oregon University on cultural programs Attached is a draft resolution that incorporates the above changes and maintains the allocation of budgeted revenue each fiscal year as follows: and and 66.7% of anticipated revenues 33.3% of anticipated revenues A set dollar amount to OSF for tourism A set dollar amount to Chamber of Commerce (CoC) for tourism A set dollar amount to CoC for Economic Development The remainder of the 33.3% being given to specific programs as applied for per the resolution General Fund general revenues General Fund E&C Grants: With and Additionally, staff attempted to be more specific on the use of grant funds in the Ashland Community and strengthened reporting requirements. Staff recommends Council increase the minimum amount to be granted from $1,000 to $2,500. Reporting is relaxed for that size of grant if the purpose for the money was not a Tourism requirement. No report would be required under those conditions unless the applicant was asking for money in a following year. In effect, this means a one-time, non-tourism grant applicant for a small amount will not have to report and staff will not have to maintain the files. The above numbers and percentages are calculated and adjusted per the resolution in accordance with the State of Oregon Chapter 818. Council has already directed staff to change grant applications and final reports to be more specific on their requests for tourism grants and qualifying uses to ensure sufficient documentation is maintained to prove compliance with Chapter 818 and the state definition of tourism. A worksheet is provided for Council Members to develop their own strategies on allocating the grant portion of the revenue generated by the 7% tax to facilitate preparation for the meeting. The form identifies the target amount to grant using 1/3 of the budgeted revenue as in the past and 14.23% for tourism as determined in 2004. ~:., ALTERNATIVE: If Council so chooses, the above allocations and goals that are based upon prior resolutions could be changed, however, use of TOT revenues for tourism must be maintained at the appropriate levels established in 2004. The estimated amount to be spent on tourism in FY 2007-2008 is $218,715 (given an average of 4% increase in TOT revenues). A "blank" resolution form is provided. Spaces have been inserted into the resolution for Council Members to consider other amounts and to identify how allocated amounts could change between years where the City has discretion. (For example, do allocations to OSF and Chamber change, increase/decrease by inflation or growth/reduction of the budgeted tax revenue on an annual basis?) TAX INCREASE Staff is still working on a proposal for how additional revenue raised by a TOT rate increase would be allocated. Research shows that some communities use money to pay for a local conference center (Seaside is an example) while others may leave that to a county, a private coalition or joint governmental effort. If Council should raise the tax rate, 70% of the additional TOT revenue generated must also go toward tourism as defined in the attachments but some of the new money may go toward supporting a convention center in Ashland, leaving 30% of the new money for discretionary purposes. In doing so, Council could identify targets or outcomes of the increased revenue outside of the historical allocations identified above. Examples are using the additional 70% to promote tourism during the "shoulder season (October-November and January-April) and the discretionary 30% could be used for programs such as helping to retire AFN debt, offsetting shortfalls in Community Development revenues that are construction permit reliant or to assist with funding the library or other specific services. The target to spend on tourism would be approximately $372,415 in FY 2007-2008 if the tax is raised to 8%. The target to spend on tourism at 9% tax rate would be approximately $526,115. Council Options: Council can: 1. Approve the attached resolution, repealing 2004-32 but keeping the allocations the same. 2. Approve the attached resolution with changes in goals and/or allocations per discussion. 3. Direct staff to bring to a future Council meeting a revised resolution that addresses items discussed in this meeting, which may be done in conjunction with an ordinance increasing the tax rate. Potential Motions: 1. Council moves to accept the staff recommendation, approving the resolution as presented. 2. Council moves to approve the resolution as amended. 3. Council directs staff to bring back a different resolution or ordinance changing the terms or tax rate. Attachments: Resolution Resolution draft (with blanks) TOT Grant Allocation Worksheet Economic and Cultural Grant Allocation with Tourism Calculation - FY 2008 Council Communication - February 6,2007, meeting Council Communication - October 12, 2006, study session ~., RESOLUTION NO. 2007 - DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE ..EXPElIInlTl JRF OEMONlES-EORECONOMICANO-CULTURAL DEVELOPMENT TO THE HOTEL/MOTEL (Transient Occupancy) TAX AND REPEALING RESOLUTION 2004-32 THE CITY OF ASHLAND RESOLVES AS FOLLOWS: S~~~r$K1r.That the City Council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax. SECTION 2. Thef()lIowing are the goals which the Budget Committee is attempting to meet by granting money to applicants for: a) Tourism Promotion: 1. Attract someone who travels to Ashland from more than 50 miles away to attend . an event. 2. Attract someone who stays the night in Ashland to attend an event. b )E~O'lo.mi~:J;)evelopment: ". )ncrea~ed number, variety and size of employers. " ge:W~g~s',at.on~bQve median wage. 4". .' . bu~iM~~ei>that ~mploy 5 to 100 people or is locally owned. EncoUrage use of local resources. 5. \/I/9rk with Southern Oregon University, especially for international commerce. 6. Discourage businesses that need water, that emit air pollution, or that create foxlGwaste. . c) eulfural Development: 1. Increase the number, variety and size of cultural opportunities in Ashland 2. Support diversification of the local economy 3. Shvwcases local.talent A..tWbr~:with Southern Oregon University on cultural programs ,,'"' j,~,'><<\" i",C:O>-.'_ ,"0,' !Til::>, ". Ingl. iscal Y'ear 2807/2008, the City Council will appropriate thirty-three and one~th:itd~€ii:q:mt (3~}~'l:'o) of. tQ~aT)ticipated Hotel/Mot~l ta-x.rnonies for Economic and 11'ulttff:;1lFDflv~fopmeri( 1"h'€i~il~ of Ashl-and has detennihedtl'lat as of July 1, 2003, $186.657'0f14.230/0 of:t"otiitHot~I/Motel tax revenues were expended on tourism pr0motion. as defined in Chapter 818 of the 2003 Oregon Laws, and will continue to be spe(ltontburi$m promJjtion im:reased or decreased annually consistent with the estiihated tot revenui:!sbudgeted. The minimum amount to be spent on tourism in FY 1- 2007 Draft TOT Expenditure Resolution Repealing 2004-32 2007.2008 is $218,715. .The~rTlouDtt? beclllocated annually to. Ashland Chamber of Cammerce (COG) and l:)regan$hak~speareFestival (OSF) far promating taurism per the state definition Shall I:)e"$ _ _0 c__ .0 and$. , respectively, adjusted p.Flc.h YP.Flf by thp. amaunt af (inflatian or deflatian, increase or decrease in bl.ldgetedTOT revenue)el>tabliShed in the Budget pracess. An additional amaUnt af $. , adjusted each year by the amaunt af (inflatian ar deflatian, il'lc(fJa~e or decrease in budgeted TOT revenue) established in the Budget propeS$, '^iillbegranted annually to COC far economic development prajects in Coaperatio!1 with City staff. Any additional amaunt far taurism required by Chapter 818 shall be allacated to. COC, QSF ar ather group during the budget pracess specifically far that purpase. The remainder af the manies budgeted far these grants may be allacated to. grantees far activities fitting in any af the three categaries set farth in Sectian 2 af this Resalutian. By JanlJary31 af~aphyear each recipient af a grant greater than $.2,500 for nan- tOLJrisTpr8gramsorany.amaunt specifically intended far tourism per tHis resalutian shan~!.Ibrnitar~P8rtt()thecitycauncilsetting farth haw thegrantfunds received. were ~l<p~n(jedimf~rthercmce of the goals set forth in Section 2. Grant recipients of $2,500 or le~s.tornan40urism programs are required to report its use only when requesting additian;almoney in a subsequent year. SECTION 4. The following guidelines and criteria are established for the Ecanomic and Gultural Development Grants: a) Grantee shall be a 501(c) non-profit agency. b) Grantee shall be a non-governmental agency" c) Grantee shall promote livability for the citizens of Ashland. .dFFh\:rOlif1imum grant proposal will be $.2,500. e) Tnegri:lnt-will benefit Ashland in regards to enrichment and activities of an ". ..ecano.mic nature. f) Grantee sllaliserve.the population in Ashland but may encompass other venues in - " .:,:t~.' .0. .4l:l ValleY. Monies)Jfanted are ihtended to be used far programs or \ ',"se" pElrformed or provided within the City of Ashland or immediate areas. ,,;<,;,,>>:c;:,\:;:;:\~;,:;;:;:;, :,' ::;"', ,. ....,.,> .....',:>'.'.,.,..",'.; .....,:.:.,..,:;:..,.,..:.:. ::<'::'>:/:,.<:r.:<,',:t:.:>t,'.' . ,,:,;,', /':' :::'.::"':::,'f:',' ',:>:;:,::;;-'i.;,':.:.:':."'- :' ::':: ::;: ~ SECTIQN 5. Resalutian 2004-32 is repealed upan passage of this resolution. Si<;::,:;!':,"?':i:{X',/..:.'< :>':,',i:'::\,",' ":/-.'.-:':>.' ,;'''::,'':;:;.', ,'-:) .S.EBlI0N'6: This resolution takes effect upon signing by the mayor. y:.;: :,~; - Thisresalulionwas read by title anly in accordance with Ashland Municipal Cade s2.04.090duly PASSED and ADOPTED this day of , 2007. 2- 2007 Draft TOT Expenditure Resolution Repealing 2004-32 Barbara Christensen, City Recorder SIGNEIDand APPROVED this _ day of ,2007. Reviewed as to form: John W. Morrison, Mayor Michael W. Franell, City Attorney 3- 2007 Draft TOT Expenditure Resolution Repealing 2004-32 "- "- N N N N 11 "' M "- 00 11 00 00 "'- 00 ~ N N N_ ~ ,.: .; N N N "' ;: M :;; ~ N '" ~ '" '" '" '" '" '" ..J II 0 0 N N N N ~ 0 :;; 00 ..J II 00 00 .0: "- ~ '" .0: N N_ t- "' .; 0 N t- N N 0 "' ;: " :;; 0 :;; N ~ t- t- '" '" '" '" '" '" ~ "' 0 ~ N ~ N N " 0 M 00 00 00 00 M '"- N N N ,.: <'i :;; N N N " ;: ~ N "' "' ~ '" '" '" '" .. '" ~ 1\ 00 ~ il "- ~ :;; c c e " ,," E '" E '" .. 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" -" E' :11 " -" " 0 roO<O=J:: <( -" 0 0 .. -" W u 0 IllzEI- (.) t- O t- City of Ashland Economic and Cultural Grant Allocation With-rourismCalcutation 2008 Proposed Tourism Payment per month Hotel/Motel Tax Revenue (4% growth) $ 1,537,000 Per Resolution 2004-32 1423% Minimum amount needed for Tourism $ 218,715 $ 218,715 1/3 of the proposed revenue $ 512,282 Additional Carryover from Prior Year' Total amount budgeted $ 512,282 Amount Allocated: Per Resolution 2004-32 (3% inftation) Chamber to promote tourism $ 82,845 $ 82,845 $ 6,904.00 Chamber for economic development 164,800 13,73300 OSF to promote tourism 113,300 113,300 $ 9,441.67 $ 360,945 $ 196,145 $ 20,637 $ 9,441.67 Other Grants $ 151,337 $ 22,570 $ 218,715 , Please note that the City Council determined that any grant monies not awarded or returned from a grantee are rebudgeted for expenditure in the next fiscal year. CITY OF ASHLAND Council Communication - . Discussion of Transient Oc~~pancy Tax Use Meeting Date February 6, 2007 Department: Administrative Services Contributing Departments: NA Approval: Martha Bennett Primary Staff Contact: Lee T uneberg E-mail: tuneberl@ashlandorus Secondary Staff Contact: NA E-mail Estimated Time: 30 minutes Staff Requests: Staff requests Council provide direction on what changes are desired for the revenue generated by City of Ashland's Transient Occupancy Tax, the rate charged and the allocation of funds generated by the tax. Statement: At the November study session Council asked staff to bring back tentative goals for the use of Transient Occupancy Tax (TOT) revenues and potential options for changing the amount (rate) charged. Background: The City of Ashland has a 7% TOT tax rate. This revenue stream is sometimes referred to as a Hotel/Motel or Bed Tax. It is collected by hotels, motels, bed and breakfasts and hostels In FY 2005-06 this tax generated $1,414,160 in revenue to the General Fund and was used as follows: Tourism Grants Economic Grants General Fund resources $205,197 $274,989 $933,974 Please note that the tourism amount and grant allocations are based upon the adopted budget and actual revenue will vary trom that amount In 2004 the State of Oregon passed legislation that restricted the use of these funds and established guidelines on what happens to any additional amount of revenue generated if the tax rate is raised. Basically, the city is required to spend a similar prorate share on tourism as was in place prior to 2004 and must dedicate 70% of any new revenue streams from an increased tax rate on tourism. Resolution 2004-32 was adopted to deal with the new State laws. The resolution established what portion was dedicated toward tourism as defined by the State. The resolution also carried forward other goals established by the City for grants given to the Chamber of Commerce, Oregon Shakespeare Festival and smaller grantees relating to tourism and economic development: Attached is a list of grants provided in the recent past: Council asked for comparative information relating to the TOT rate in Ashland and other communities. Below is a comparison table of other city's Transient Occupancy Tax rates. ~~, City Rate Portland Bend Medford Astoria Grants Pass Klamath Falls Salem Seaside Roseburg Cannon Beach Eugene Springfield 11.5% 90% 9.0% 9.0% 9.0% 9.0% 90% 8.0% 8.0% 6.0% 45% 4.5% As can be seen, Ashland is less than most, falling between the rates charged by other tourist locales, Canon Beach and Seaside. It would appear that Eugene and Springfield are "deadlocked" at 4.5%, neither forcing tourists to stay in the other's boundaries simply through a higher tax rate. If Ashland were to raise its rate, each additional 1 % would generate over $151,000 to be spent on tourism per the State's definition and about $65,000 in revenue to be used for any other programs. The following table illustrates how an increase from a 7% tax to 8% would affect the estimated overall revenue, the amount required to go toward tourism and what additional amount would be generated for other use per ORS 305.824(5}(b). TOT Revenue Current 7% Increase to 8% Total $ 1,514,100 $ 216,186 $1,730,286 Portion of increase to Tourism (70%) Portion available for other uses (30%) 151,330 64,856 This means that 70% of the revenue generated by an increase ($151,330) will need to be added to the budgeted $215,456 already going toward tourism, of which the largest portion goes to the Chamber of Commerce for visitors and convention services. Approximately $65,000 would be generated for City services not tourism based. Goals included in the grant resolution have been similar in wording for many years but interpretation and application has shifted over time. Some Council members and budget Committee members have recalled unwritten goals to use the money as "seed" money to get small groups and/or new programs started. The resolution has provided money for ongoing programs including and beyond the work done by the Chamber and OSF. Many smaller grant applicants have received annual allocations per the attached table. Council requested staff provide potential changes to the resolution and goals to assist in determining how the City can best use funds generated, supporting tourism and economic development yet remaining compliant. More specific goals in the three categories will assist the awarding of grants to applicants and reporting by them on how the money was used Examples of more specific goals are: Tourism: . Someone who travels to Ashland from more than 50 miles away to attend an event . Someone who stays the night in Ashland to attend an event ,,~, Economic Development . Increase number, variety and size of employers . Wages at or above median wage . Employ 5 to 100 people or locally owned . Encourage local resources . Work with Southern Oregon University, especially for international . Discourage businesses that need water, that emit air pollution, or that create toxic waste Cultural Development Proposed . Increase number, variety and size of cultural opportunity . Support diversification of local economy . Showcase local talent . Work with Southern Oregon University Staff offers the following information to assist the discussion on what could be done different with the use of the funds providing additional monies for specific City programs: 1. Raise the tax by 1% to 8% resulting in a total commitment to tourism expenditures of $366,786 ($215,456 + $151,330). 2. Allocate the same portion to Oregon Shakespeare Festival as currently provided which is approximately $112,200 3. Allocate the remainder of tourism dollars required ($366,786 - $112,200 = $254,586) to the Chamber of Commerce for Visitor Convention Bureau. 4. Allocate $150,000 to grantees for economic development or cultural development per applications to maintain a consistent total level of support. 5. Allocate $950,000 to General Fund as general revenues to maintain a consistent total level of support. 6. Allocate the remainder of total TOT revenues to go toward specific General Fund programs including other economic development work, AFN support or debt, social programs, etc. 2007 Allocation Proposed Allocation per Budget with 1 % increase New Dollar Allocated $1,514,100 $1,730,286 By Category Tourism Chamber of Commerce $ 82,845 $ 170,641 $ 253,486 Oregon Shakespeare Festivat 113,300 113,300 Other Grantees 19,311 (19,311) Total $ 215,456 $ 151,330 $ 366,786 Economic and Cullural Development Chamber of Commerce $ 164,800 $ (164,800) $ Other Grantees 124,394 25,606 150,000 Total $ 289,194 $ (139,194) $ 150,000 General Fund Resources Non Specific $ 1,009,450 $ $ 1,009,450 Specific Programs 204,050 204,050 Totat $ 1,009,450 $ 204,050 $ 1,213,500 ~~, Council Options: Council can ask staff to: 1. Bring to Council a resolution that mirrors the existing 2004-32 for renewal 2 Bring to a future Council meeting a revised resolution that addresses items discussed in this study session. 3. Work with identified individuals (Council members, staff or others) to create a new resolution that manages and/or allocates the TOT revenue collection and distribution differently per State guidelines and City goals. Potential Motions: 1. Council accepts staff recommendation as presented 2. Council amends recommendation 3. Council directs staff to bring back more information for discussion Attachments Resolution 2004-32, 2004-11, 2000-25, 1998-02, and 1993-12 Economic and Cultural Development Grant Allocation with Tourism Calculation Small Grants Tourism Allocation Economic and Cultural Development Grant History ~~, City of Ashland Economic and Cultural Grant Allocation With Tourism Calculation 2007 Adopted Tourism Payment per month Hotel/Motel Tax Revenue (5% growth) $ 1,514,100 Per Resolution 2004-32 14.23% Minimum amount needed for Tourism $ 215,456 $ 215,456 1/3 of the proposed revenue $ 504,650 Additional Carryover from Pnor Year' 5,000 Total amount budgeted $ 509,650 Amount Allocated: Per Resolution 2004-32 (3% inflation) Chamber to promote tourism $ 82,845 $ 82,845 $ 6,90400 Chamber for economic development 164,800 13,733.00 OSF to promote tourism 113,300 113,300 $ 9,44167 $ 360,945 $ 196,145 $ 20,637 $ 9,441.67 Other Grants $ 148,705 $ 19,311 $ 215,456 , Please note that the City Council determined that any grant monies not awarded or returned from a grantee are rebudgeted for expenditure in the nexl fiscal year. City of Ashland FY 2006-07 Economic and Cultural Development Grant Applicants Small Grants Tourism Allocation Adopted Tourism Allocated to Organization Requested Amount Amount Percentage Tourism Ashland Independent Film Festival $ 30,000 $ 16,000 $ 20,000 0.67 10,667 Rogue Valley Symphony 14,750 8,000 1,622 0.11 880 Nuwandart 5,500 1,500 1,100 020 300 Ashland Gallery Association 33,200 16,000 19,400 0.58 9,349 Community Works 10,000 2,500 000 SI. Clair Productions 6,000 4,000 2,400 040 1,600 Arts Council 12,500 5,000 7,500 0.60 3,000 Multi Cultural Association 10,000 10,000 0.00 The Jefferson Center for Religion 10,000 7,000 0.70 Lithia Arts Guild 15,431 9,000 3,086 0.20 1,800 Youth Symphony of Southern Oregon 5,500 5,000 000 Second Street Musicians 3.250 2,000 0.62 Dancing People Company 7,000 700 0.10 ScienceWorks 20,303 16,000 5,076 0.25 4,000 Konaway Nika Tillicum 5,000 5,000 2,500 0.50 2,500 Chautauqua Poets & Writers Board 5,000 5,000 0.00 SOWAC 8,000 8,000 0.00 Thrive 11,000 11,000 1,100 0.10 1,100 Children's Musical Theatre of Ashland 25,000 625 0.03 ArtNow 1,500 1,205 300 0.20 241 Rogue Opera 12,000 7,000 0.00 S. Oregon Repertory Singers 7,500 2,500 4,100 0.55 1,367 Peace House 9,766 0.00 Oregon Stage Works 51,000 5,000 20,400 040 2,000 Siskiyou Singers 7,000 5,000 300 004 214 Ballet Rogue 10,000 6,000 5,000 050 3,000 $ 336,200 $ 148,705 $ 98,909 38,804 Amount Available $ 148,705 Tourism Minimum $ 19,311 3/1/2007 " ~ ~ ~~ ~ 0 Wo; '" > o~ ~ni U' B -,; u u '. o o o u W ~ ~ o ~ . ~ W , ~ ~ ~"" <<>'0 b 0.0 .;,-e Cl ~ j ~ :g-g ";''E ~ ; ~"" o ~ -g ~ M"E N ~ ; ~"" o ~~ 0 o Q) 0. N"E o . >- , ~"" .,. S . I N ~ o ~ . ~ - , ~ ~ ~"" o . .:;; - ~ o ~ 0."'2 t~ g-g ';'"'2 ~ . >- , ~"" ~ ~ ~ ~ cO"'E ~ . >- , ~"" ~~ ~ ~ . ~ ~ , ~ 1i ~'" ~ 0 00 NO ',n = = = = o Cl Cl Cl o Cl Cl U") tOw"",,,,, o o o ,.; gg ~ 0 ci~ o Si 00 8:7: '" <:> a c> 0 000 Cl o.nC>l1"> <D r-j"",' N...... 000 S2_8 (YO......"" 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" , " , c ! , } ;j = m ~ ~ ~ c ~ DO u ;'; )j g ~ ~ D o ID g> Q o z ! ! . , . i , ~ , is o 5 ;j ~ . ! ~ '" CITY OF ASHLAND Council Communication _ _~!udy Session - Goals for Transient Occupancy Tax Use Meeting Date October 12, 2006 Department: Administrative Services Contributing Departments: NA Approval: Martha Bennett Primary Staff Contact Lee T uneberg E-mail: tuneberl@ashland.or.us Secondary Staff Contact NA E-mail: Estimated Time: 60 minutes Staff Requests: Staff requests that Council discuss what outcomes are desired from the use of the General Fund revenue generated by the Transient Occupancy Tax (TOT) in conjunction with State requirements and the needs of the City. Statement: This is a study session. The discussion should provide a better understanding for Council and staff on the history of this tax, and its uses, and may be the basis for subsequent changes in the tax or the City's goal(s) in the use of the revenue generated. In the past there has been significant discussion by Council and the Budget Committee regarding the use of the TOT revenue and the grant process for distributing the funding. Suggestions range from additional changes on how much is awarded to whom, better criteria for awarding grants to applicants, different requirements for applying and different reporting requirements needed for the use of granted monies. . More specifically, areas of concern have included: 1. How much do we get each year? 2. What percent of TOT revenue does Council want to go to the General Fund and what percent go toward economic development and visitors and convention services (per state statute the minimum to be spent on tourism in FY 2006-07 is $215,456)? 3. How could we increase funding for visitor services or economic development? 4. What other activities should or could the City fund with these revenues? 5. Can we raise the TOT rate above 7%? What happens to the added revenue? 6. How can we give better direction to the budget committee in awarding grants? 7. Should CoC and OSF do an annual application for the amount they need for that year's activities or should they each receive a fixed amount? 8. Should someone or group other than the budget committee award the grants? 9. How do we ensure that the money granted is used as intended and effectively? 10. Should we do two year grant awards like the City does for social grants? 11. Should we have a more streamlined application process and/or reporting for very small grants (ie - under $2,500)? ~~, 12. Do we have particular goals for visitors services that would change the app Iication process? This may not be a comprehensive list. Background: The Transient Occupancy Tax (TOT) was first passed by Ordinance #1907 in 1977. The Ordinance states that each transient who rents a room, house, or similar structure for less than 30 days will be charged a 7% tax on the room rate. Each establishment is allowed to retain 5% of those taxes collected for administering the tax and the remainder goes to the City's General Fund. It is estimated that in FY 2006-2007, the operator(s) will receive almost $79,000 in total for collecting the tax, and the General Fund will receive $1.5 million in TOT funds. Currently, there are six establishments that report monthly and sixty-six that report quarterly. It is estimated the staff spends one hour per quarter on collections. The City allocates the TOT revenue generated by the ordinance in the General Fund The latest Resolution is 2004-32 and it was adopted on September 21,2004, effective for FY 2004-2005. The provisions of the resolution sunset three years from adoption (September 21, 2007, and FY 2006-2007) and thus a replacement resolution will need to be implemented this year in preparation for the FY 2007 -2008 budget. Below is a table that shows siqnificant chanqes in the qrant process over the years. There have been some clarifying or correcting resolutions in between those presented but they are immaterial to this discussion. Action #93-12 Increase in #98-02 60% to COC #2004-11 Comply #2004-32 Include Grant Amount & 28% to OSF with ORS Tourism Arts Commission Awarded by: Application Per resolution Per resolution Per resolution Grant Award Cae Per Application $156,000 $240,432 $240,432 (same vear) - Grant Award OSF Per Application $72,800 $110,000 $110,000 Basis for Increase General Fund Hotel/Motel Tax Inflation/Deflation Inflation/Deflation Revenue Growth Revenue Growth Grant Report Not specified Next FY - Jan. 31 Next FY - Jan. 31 Next FY - Jan. 31 The allocation of the TOT revenue per the resolution for FY 2006-2007 and calculation of the tourism amount per the state definition is attached Please note that in every process many grantees and budget subcommittee members have struggled with several issues. Followinq is a list of issues relatinq to most of the applicants: A. The resolution guidelines are general in nature to allow creativity but that can also lead to confusion when evaluating and comparing applications, their perceived benefit and the appropriate amount to grant. B. The subcommittee may be asked to grant to an applicant for a worthy activity who has only a preliminary approval letter from the IRS. C. The application, award and subsequent reporting processes may be discouraging to grant applicants requesting small amounts. A significant recent change has been ~~, requiring the 501 (c) applicant to provide their most current 990 report to the IRS regardless of how small the City's grant may be, especially when compared to the applicant's other revenue streams. D. The City could be spending more money administering and pursuing information on small amounts granted to a one-time event than the amount awarded to the applicant. E. The state requirement for tourism is benchmarked on "spending." Measures on the effectiveness of spending may be difficult to quantify, especially for smaller activities. Single event grants are somewhat easier for reporting as long as the event happens early in the Fiscal Year (FY) such as July - February. For ongoing activities (Chamber, OSF, and many small amount applicants) and those that happen after the new application process has started, there are added problems as listed below: A. Chamber and OSF were exempted from the annual application process with Resolution #98-02 which has caused concern with the contract award process regarding what the community is getting for the amount awarded. B. A repeat grantee could be applying for a second year grant before completing the prior year's activities. C. In many cases, a second year grant will have to be awarded (if approved during the budget process) before the first year's report can be generated. D. A grantee's first year activity may not relate to a second year activity, thus success or failure on a previous awarded activity may not be a good indicator of a subsequent grant's potential success. There is considerable interest in dealing with these issues. Changes in the processes for applying, awarding, utilization or reporting can be significant and may require an appropriate lead time for compliance. At best it will require input from participants and the public that may not fit well if held to the budget or contract approval process. A process to change the resolution will need to begin early enough to be completed in time for revisions to the grant application, directions and forms that are done in February. This would help to make the FY 2007-2008 grant and budget schedule smoother. The amount received in the General Fund is allocated by current Resolution 2004-32 that states the City Council will appropriate thirty three and one third percent of the anticipated Transient Occupancy Tax monies for Economic and Cultural Development with the remaining sixty six and two thirds percent allocated to the General Fund to fund Police, Fire and Community Development costs. A change in the allocation guidelines established in the current resolution will impact operations and funding of General Fund services. Reducing the portion that goes for general support will require additional reliance on other revenue streams such as property taxes in the General Fund departments. An example of such an impact for FY 2006-2007 follows. ~.t. 1 TOT Revenue Portion to General Fund TOT Percentage of Total Revenue to the General Fund 2007 Adopted Current 7% $ 1,514,100 1,009,450 60/0 Portion to Grantees 504,650 Property Tax Rate Permanent Rate Limit Unlevied Portion available 3.9747 42865 03118 Tax rate increase to maintain $1 million for General Fund costs 0.5920 Rate shortfall Revenue shortfall $ 02802 477,000 Property taxes alone will not be sufficient to maintain the General Fund at the approximate $1 million level the TOT funds have provided in the past. A significant portion of the revenues generated by the TOT continues as a need in the General Fund. Related City Policies: The TOT could be increased to provide additional revenue to be dedicated towards tourism. In FY 2003-2004, the following revised statute was passed regarding TOT. ORS305.824 911 (3) A unit of local government that Imposed a local transient lodging tax on July 1, 2003, may not decrease the percentage of total local transient lodging tax revenues that are actually expended to fund tourism promotion or tourism-related facilities on or after July 2, 2003. (5) Subsections (1) and (2) of this section do not apply to a new or increased local transient lodging tax if all of the net revenue from the new or increased tax. . is used consistently with subsection (6) of this section to (a) Fund tourism promotion or tourism related facilities; (b) Fund city or county services; or (c) Finance or refinance the debt of tourism-related facilities.. (6) At least 70 percent of net revenue from a new or increased local transient lodging tax shall be used for the purposes described in subsection (5) (a) or (c) of this section. No more than 30 percent of net revenue from a new or increased local transient lodging tax may be used for the purpose described in subsection (5) (b) of this section. (7) 'Tourism promotion' means any of the following activities: (a) Advertising, publiCizing or distributing information for the purpose of attracting and welcoming tourists; (b) Conducting strategic planning and research necessary to stimulate future tourism development; (c) Operating tourism promotion agencies; and (d) Marketing special events and festivals designed to attract tourists. (9) 'Tourism-related facility': (a) Means a conference center, convention center or visitor information center; and (b) Means other improved real property that has a useful life of 10 or more years and has a substantial purpose of supporting tourism or accommodating tourist activities. Tourism is defined as someone who travels 50 miles or more or who spends the night in Ashland to attend an event. ~~, The following table illustrates how an increase from a 7% tax to 8% would affect the amount required to go toward tourism and what additional amount would be generated for other use per ORS 305824(5)(b). TOT Revenue Current 7% Increase to 8% Total $ 1,514,100 $ 216,186 $1,730,286 Portion of increase to Tourism (70%) Portion of increase to Economic Development (30%) 151,330 64,856 This means that 70% of the revenue generated by an increase ($151,330) will need to be added to the amount already going toward tourism ($235,000), of which the largest portion goes to CofC for visitors and convention services. Only $64,856 would be generated for City services not tourism based. Staff is asking for direction to set up the budget and granting process for the coming year(s). Does Council want to: 1. Change the percentage of TOT that goes to VCB, economic development or other grants? 2. Increase funding for VCB or economic development by increasing the TOT rate? 3. Require CoC or OSF to apply for grant monies like other grant applicants? 4. Set a fixed allocation for CoC or OSF? 5. Change or set specific criteria or goals for the grants as in previous resolutions? 6. Allow for a multi-year allocation? 7. Make the application and reporting process easier for the little grants? 8. Change how the applications are reviewed ( and how allocations are made)? Council Options: Council can ask staff to: 1. Bring to Council a resolution that mirrors the existing 2004-32 for renewal. 2. Bring to a future Council meeting a revised resolution that addresses items discussed in this study session. 3. Work with identified individuals (Council members, staff or others) to create a new resolution that manages and/or allocates the TOT revenue collection and distribution differently per State guidelines and City goals. Potential Motions: This is a study session so no formal decision can be made at this time. Attachments: Resolution 2004-32, 2004-11, 2000-25, 1998-02, and 1993-12 Economic and Cultural Development Grant Allocation with Tourism Calculation Small Grants Tourism Allocation Economic and Cultural Development Grant History ~4111 ._~ RESOLUTION NO. 2004- ~L A RESOLUTION OF THE CITY COIJNClL OF THE CITY OF ASHLAND REJTERATlNG ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTELfMOTEI" (Transient Occupancy) TAX AND REPEALING RESOLUTION 2004-11 THE CITY OF ASHLAND RESOL VES AS FOLLOWS: SECTION 1. That the city council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax. SECTION 2. The following are the goals which the Economic and Cultural Development Committee is attempting to meet by granting mnney to applicants: a) Tourism Promotion. b) Economic Development by: J) Responding to general inquiries about business in the city; 2) Providing assistance to existing small businesses; 3) Providing technical and financial assistance for the expansion of existing businesses; 4) Providing technical and financial assistancc for the development of new businesses; or 5) Providing such other services and support to business as the city council may deem beneficial. c) Cultural Development. SECTION 3. Beginning in Fiscal Year 2004/2005, the city council will appropriate thirty- three and one-third percent (33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development. The City of Ashland has determined that as of July 1,2003, $186,657 or 14.23% of total Hotel/Motel tax revenues were expended on tourism promotion, as defined in Chapter 818 of the 2003 Oregon Laws, and will continue to be spent on tourism promotion increased or decreased annually consistent with the estimated TOT revenues budgeted. The amount to be allocated annually to Ashland Chamber of Commerce (COC) and Oregon Shakespeare Festival (OSF) for promoting tourism per the state definition shall be $80,432 and $\ ]0,000, respectively, adjusted each year by the amount of inflation or deflation established in the Budget process. An additional amount of $160,000, adjusted each year by the amount of inflation or deflation established in the Budget process, will be granted annually to COC for economic development projects in cooperation with City staff The allocations in this paragraph shall sunset after three years. Any additional amount for tourism required by Chapter 818 shall be allocated to COC, OSF or other group during the budget process. The remainder of the monies budgeted for these grants may be allocated to grantees for activities fItting in any of the three categories set forth in Section 2 of this Resolution. TOT Resolution 9/07/04 page I of 2 By January 31 of each year each recipient of grants under this resolution shall submit a report to the city council selling forth how the grant funds received were expended in furtherance of the goals set forth in Section 2. SECTION 4. The following guidelines and criteria are established for the Economic and Cultural Development Grants: a) Grantee shall be a SOI(c) non-profit agency. b) Grantee shall be a non-governmental agency. c) Grantee shall promote livability for the citizens of Ashland. d) The minimum grant proposal will be $\ ,000. e) The grant will benefit Ashland in regards to enrichment and activities of an economic nature. \) Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley. g) Irrespective of sub-paragraph 'b', the City of Ashland Public Arts Commission may apply for and receive funds. SECTION 5. Resolution 2004-11 is repealed upon passage of this resolution. SECTION 6. This resolution takes effect upon signing by the mayor. This resolution was read by title only in accordance with Ashland Municipal Code Section 2.04.090 duly ~ r* 5.ef2-t~ PA~TED~200' , Barbara Christensen, City Recorder tf--/ M'l9 ~ SIGNED and APPROVED this~day ubrt,s-<Sl2004: / ~~~~ Alan DeBoer, Mayor TOT Resolution 9/07/04 page 2 of2 ~ RESOLUTION NO. 2004- / I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTEL/MOTEL (Transient Occupancy) TAX AND REPEALING RESOLUTION 2000-25 THE CITY OF ASHLAND RESOLVES AS FOllOWS. SECTION 1. That the city council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax SECTION 2. The following are the goals which the Economic and Cultural Development Committee is attempting to meet by granting money to applicants: a) Tourism Promotion b) Economic Development by 1) Responding to general inquiries about business in the city; 2) Providing assistance to existing small businesses; 3) Providing technical and financial assistance for the expansion of existing businesses; 4) Providing technical and financial assistance for the development of new businesses; or 5) Providing such other services and support to business as the city council may deem beneficial. c) Cultural Development SECTION 3. Beginning in Fiscal Year 2004/2005, the city council will appropriate thirty-three and one-third percent (33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development The City of Ashland has determined that as of July 1, 2003, $186,657 or 14.23% of total Hotel/Motel tax revenues were expended on tourism promotion, as defined in Chapter 818 of the 2003 Oregon Laws, and will continue to be spent on tourism promotion increased or decreased annually consistent with the estimated TOT revenues budgeted The amount to be allocated annually to Ashland Chamber of Commerce (COe) and Oregon Shakespeare Festival (OSF) for promoting tourism per the state definition shall be $80,432 and $110,000, respectively, adjusted each year by the amount of inflation or deflation established in the Budget process An additional amount of $160,000, adjusted each year by the amount of inflation or deflation established in the Budget 1- 2004 TOT final resolulion process, will be granted annually to COC for economic development projects in cooperation with City staff. The allocations in this paragraph shall sunset after three years. Any additional amount for tourism required by Chapter 818 shall be allocated to COC, OSF or other group during the budget process The remainder of the monies budgeted for these grants may be allocated to grantees for activities fitting in any of the three categories set forth in Section 2 of this Resolution. By January 31 of each year each recipient of grants under this resolution shall submit a report to the city council setting forth how the grant funds received were expended in furtherance of the goals set forth in Sectron 2. SECTION 4. The following guidelines and criteria are established for the Economic and Cultural Development Grants. a) Grantee shall be a 501 (c) non-profit agency. b) Grantee shall be a non-governmental agency c) Grantee shall promote livability for the citizens of Ashland. d) The minimum grant proposal will be $'1,000 e) The grant will benefit Ashland In regards to enrichment and activities of an economic nature. f) Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley. SECTION 5. Resolution 2000-25 is repealed upon passage of this resolution. SECTION 6. This resolution takes effect upon signing by the mayor This resolution was read by title only in accorda~;;-e With Ashla !)20 . 90 duly PASS D and ADOPTED this -iC-- day of / J. ~ arbara Christensen, City Recorder Municipal Code ,2004. SIGNED and APPROVED this ~ day of IY) /I r' 2004 -.---' . ~~~~ R~m, Paul Nolte, City Attorney 2- 2004 TOT final resolution Alan W. DeBoer, Mayor [0 [~ RESOLUTION NO. ~ -d.5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTEL/MOTEL (Transient Occupancy) TAX AND REPEALING RESOLUTION 98-23. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. That the City Council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax. SECTION 2. Beginning in Fiscal Year 2001/2002, the City Council will appropriate thirty three and one-third percent (33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development. Sixty percent (60%) of these funds will be allocated to the Ashland Chamber of Commerce; twenty eight percent (28%) will be allocated to the Oregon Shakespeare Festival; and twelve percent (12%) will be granted to local organizations which promote Economic and Cultural Development. The anticipated budget for subsequent fiscal years shall be based on the previous year's actual receipts. Actual receipts which exceed the anticipated amounts will remain in the General Fund. By January 31 of each year the Chamber of Commerce and the Shakespeare Festival shall make a report to the City Council regarding meeting the goals in Section 3. SECTION 3 The following are the goals which the Economic and Cultural Development Committee is attempting to meet by granting money to applicants. a) To respond to general inquiries about business in the City. b) To promote tourism. c) To provide assistance to existing small businesses. d) To provide technical and financial assistance for the expansion of existing businesses. e) To provide technical and financial assistance for the development of new businesses. f) To provide information and financial assistance to small cultural organizations to: 1) attract tourists with emphasis on the off-season; 2) create a greater diversity of cultural opportunities for our citizens. SECTION 4. The following guidelines and criteria are established for the Economic and Cultural Development Grants. a) Grantee shall be a 501(c) non-profit agency. b) Grantee shall be a non-governmental agency. c) Grantee shall promote livability for the citizens of Ashland. d) The minimum grant proposal will be $1,000 G:\city-admin\admin\Administration\Reso-Hotel Motel tax 2000 e) The grant will benefit Ashland in regards to enrichment and activities of an economic nature. f) Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley. SECTION 5. Resolution 98-23 is repealed upon passage of this resolution. This resolution was read by title only in accordance with Ashland Municipal Code Sec. 204 90 duly PASSE a d ADOPTED this l!i day o~~ooo arbara Christensen, City Recorder SIGNED and APPROVED this V day of ~ ,2000. ~~itA~ Catherine M. 'Shaw, Mayor R~d " 10 fo~. Paul No te, City Att~rney G:\city-admin\admin\Administration\Reso-Hotel Motel tax 2000 RESOLUTION NO. 98- O~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTEL/MOTEL (Transient Occupancy) TAX AND REPEALING RESOLUTION 93-12. THE CITY OF ASHLAND RESOLVES AS FOLLOWS SECTION 1. That the City Council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax. SECTION 2. That the City Council will appropriate thirty three and one-third perce~ (33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development. Sixty percent (60%) of these funds will be allocated to the Ashland Chamber of Commerce; twenty eight percent (28%) will be allocated to the Oregon Shakespeare Festival; and twelve percent (12%) will be granted to local organizations which promote Economic and Cultural Development. Effective with the 1999-2000 Budget, and annually thereafter, the allocations to the Shakespeare Festival and the Chamber of Commerce shall be adjusted by an amount equal to their respective shares of the actual tax collection in the previous fiscal year. By January 31 of each year the Chamber of Commerce and the Shakespeare Festival shall make a report to a joint meeting of the City Council and the Budget Committee regarding meeting the goals in Section 3. SECTION 3, The following are the goals which the Economic and Cultural Development Committee is attempting to meet by granting money to applicants, a, To respond to general inquiries about business in the City b. To promote tourism c, To provide assistance to existing small businesses d, To provide technical and financial assistance for the expansion of existing businesses e, To provide technical and financial assistance for the development of new businesses f. To provide information and financial assistance to small cultural organizations to: 1) attract tourists with emphasis on the off-season; 2) create a greater diversity of cultural opportunities for our citizens SECTION 4. The following guidelines and criteria are established for the Economic and Cultural Development Grants. a. Grantee shall be a 501(c) non-profit agency b. Grantee shall be a non-governmental agency c. Grantee shall promote livability for the Citizens of Ashland d. The minimum grant proposal will be $1,000 e. The grant will benefit Ashland in regards to enrichment and activities of an economic nature f. Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley SECTION 4. Resolution 93-12 is repealed upon passage of this resolution. This resolution was read by title only in accordance with Ashland Municipal Code ~204090 duly PASSED and ADOPTED this /7 day of ?~ ~~~ ,1998. Barbara Christensen, City Recorder SIGNED and APPROVED this /Y day of 1~~ ,1998. /"7 ' {t':'..f--h~~.:1~ Catherine M. Golden, Mayor Reviewed as to form: p~ Paul Nolte, City Attorney Revised: 02/13/98 (G:\budget\economic\feso98) RESOLUTION NO. 93- / Z A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND, REITERATING ITS POLICY OF RELATING THE EXPENDITURES OF FUNDS FOR ECONOMIC DEVELOPMENT TO THE HOTEL/MOTEL (TRANSIENT OCCUPANCY) TAX. RECITALS: A. The maintenance and development of tourism is directly interrelated to the health of the entertainment, food, and lodging industries in Ashland. B. In 1979, a formula was implemented which allocated a percentage of the Hotel/Motel Tax revenues to promote and enhance tourism and other economic development strategies. C. The citizens Budget Committee and City Council have determined that funding for economic development activities should henceforth be tied to the annual growth or reduction of current general fund revenues. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. That the Council hereby restates its recognition that the source of funding for economic development activities continues to be the Hotel/Motel Tax. SECTION 2. That the Council is committed to maintaining its historic support for economic development activities as a whole, but cannot limit the Citizens Budget Committee or future City CouncilS to specific appropriations for programs which have been funded in the past. The foregoing Resolution was READ by title re9ular meeting Of~~y Council of the ~~ day of , 1993. ~ti?t~ Nan E/ Franklin City Recorder only and DULY ADOPTED at a City of Ashland on the j1t-d day of , ~ , 1993. SIGNED and APPROVED this ~~/~~ catherine M. Golde Mayor AP~ved as to form: ~AJ~f Paul Nolte ' City Attorney (d:\<:condev.Res) ~~ City of Ashland Economic and Cultural Grant Allocation With Tourism Calculation 2007 Adopted Tourism Payment per month HolellMotel Tax Revenue (5% growth) $ 1,514,100 Per Resolution 2004-32 1423% Minimum amount needed for Tourism $ 215,456 $ 215,456 113 of Ihe proposed revenue $ 504,650 Addllional Carryover from Pllor Year' 5,000 T alai amount budgeted $ 509,650 Amount Allocated Per Resolution 2004-32(3% mflation) Chamber to promote tourism $ 82,845 $ 82,845 $ 6,90400 Chamber for economic development 164,800 13,733 00 OSF to promote tourism 113,300 113,300 $ 9,441.67 $ 360,945 $ 196,145 $ 20,637 $ 9,441.67 Olher Grants $ 148,705 $ 19,311 $ 215,456 , Please note that the City Council determined thai any grant mOnies not awarded or returned from a grantee are rebudgeted for expenditure in the next fiscal year. City of Ashland FY 2006-07 Economic and Cultural Development Grant Applicants Small Grants Tourism Allocation Adopted Tourism Allocated to Organizalion Requested Amount Amount Percentage Tourism Ashland Independent Film Feslival $ 30,000 $ 16,000 $ 20,000 0,67 10,667 Rogue Valley Symphony 14,750 8,000 1,622 011 880 Nuwandarl 5,500 1,500 1,100 0,20 300 Ashland Gallery Association 33,200 16,000 19,400 0,58 9,349 Community Works 10,000 2,500 000 SI. Cia" Produclions 6,000 4,000 2,400 040 1,600 Arls Council 12,500 5,000 7,500 060 3,000 Multi Cultural Associalion 10,000 10,000 0,00 The Jefferson Center lor Religion 10,000 7,000 070 Lilhia Arts Guild 15,431 9,000 3,086 020 1,800 Youlh Symphony 01 Southern Oregon 5,500 5,000 0,00 Second Slreet Musicians 3,250 2,000 0,62 Dancing People Company 7,000 700 0,10 ScienceWorks 20,303 16,000 5,076 025 4,000 Konaway Nlka Tillicum 5,000 5,000 2,500 0,50 2,500 Chaulauqua Poets & Writers Board 5,000 5,000 0,00 SOWAC 8,000 8,000 0,00 Thrive 11,000 11,000 1,100 010 1,100 Children's Musical Thealre at Ashland 25,000 625 003 ArtNow 1,500 1,205 300 020 241 Rogue Opera 12,000 7,000 000 S, Oregon Repertory Singers 7,500 2,500 4,100 055 1,367 Peace House 9,766 000 Oregon Slage Works 51,000 5,000 20,400 040 2,000 Siskiyou Singers 7,000 5,000 300 0,04 214 Ballet Rogue 10,000 6,000 5,000 0,50 3,000 $ 336,200 $ 148,705 $ 98,909 38,804 Amount Available $ 148,705 Tourism Minimum $ 19,311 2/112007 c ~ . :;; E ~ g- w. 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Staff Recommendation: Adopt the resolution. Background: While standing committees are created either by resolution or ordinance, ad hoc committees are formalized via resolution at the discretion of the council. Given the potential length of time this committee may be in effect and the duties associated with the committee, council may wish to formally establish the committee via resolution. The City has received twenty one letters from people interested in serving on the committee. The Mayor is in the process ofreviewing the letters, interviewing and finalizing appointments. The Mayor's recommendation for committee appointments will come to the Council, for confirmation, at the October 2 meeting. Related City Policies: 92.04.080 Appointing Committees Council Options: Council can: . Adopt the resolution as written. . Identify changes to the resolution and adopt. . Decline to adopt the resolution. Potential Motions: I move adoption of the resolution establishing the Citizen Library Advisory Ad hoc Committee. Attachments: . Draft Resolution · 92.040.080 AMC and Section 9 DRAFT Council Rules Page I of I 9 18 07 council communication Rcso CLAC.doc r.l' RESOLUTION NO A RESOLUTION ESTABLISHING THE CITY OF ASHLAND '~ \ I \..^A CITIZEN ADVISORY AD HOC COMMITTEE. . ~'lfkOVIr~J\ \'0 U RECITALS: ~\ ,- A. The City of Ashland and Jackson County are working towards reopening the Ashland Public Library. B. The City desires to establish a conunittee to advise the City Council on matters relating to the Ashland Public Library, excluding daily administrative operations. THE CITY OF ASHLAND RESOLVES AS FOLLOWS SECTION 1. Conunittee Established. The Citizens Library Advisory Ad hoc Conunittee (CLAe) is established and shall consist of up to ten voting members. SECTION 2. Purpose and Duties. The purpose of the CLAC shall be to advise the City Council on matters relating to the Ashland Public Library, excluding daily administrative operations, once the library reopens. The conunittee shall have the following duties: A. Review services provided by the Ashland Public Library during the interim period from when the library reopens through June 2009. B. Identify and reconunend the delivery of future services by the Ashland Public Library. C. Receive conununity input concerning the Ashland Public Library. D. Work in conjunction with regional and other municipal groups to identify long term library funding options and library governance options to be completed for council review by March 2008. E. Serve as a liaison with the County Library Advisory Conunittee. SECTION 3. Qualifications. Vacancies. Terms A. Voting members will include: up to two people with library experience, one person with finance and taxation knowledge, one person with issue-based election campaign experience and up to six at large positions. B. In making the at large position appointments, the council shall give preference to applicants which represent the various library users and partner organizations. C. The CLAC shall establish ~re ular time, date and place of meeting and shall hold at least one regular meeting every. re months and more frequently if needed. fi. M.Ol\+li D. Any conunittee member, w 0 is absent, without prior permission from the c\friimittee chair, from three or more meetings in a one-year period shall be considered no longer active and the position vacant and a new person shall be appointed to complete the term. E. The CLAC shall terminate in June 2009. SECTION 4 Meetings. Quorum. Reports A. At its first meeting the conunittee shall elect a chair, vice chair and one of its members to take minutes of the meetings and provide copies to the City Council. B. A simple majority of the voting members constitutes a quorum. C. Reports or reconunendations of the conunittee shall be considered advisory in nature and shall not be binding on the mayor or city council. D. Meetings shall comply with Oregon Public Meeting laws. This resolution was read by title only in accordance with Ashland Municipal Code. S2.04.090 duly PASSED and ADOPTED this _ day of ,2007. Barbara Christensen, City Recorder SIGNED and APPROVED THIS _ day of 2007 Johri Morrison, Mayor Reviewed as to form: Richard Appicello, Interim City Attorney Attachment September 18, 2007 Ashland City Council Ashland Municipal Code 2.04.080Appointing Committees All committees not required by State law to be appointed by the Council shall be appointed by the Mayor with the consent of the Council, or in the Mayor's absence, any appointment necessary may be made by the presiding officer, with the consent of the Council. After the standing committees have been formally announced they cannot be changed except at a regular meeting of the Council and by a majority vote of the members present. All terms of boards, commissions and committees shall be extended to April 30 of each year, beginning with the terms expiring on December 31, 1989. (Ord. 1875,1976; Ord. 2523(A) S2, 1989). Section 9.2 DRAFT Council Rules 9.2 Council Ad-hoc Committees The Mayor shall have the authority to form ad-hoc committees to deal with specitlc tasks within specific time frames and make recommendations to the Council. The Mayor or City Administrator may refer matters to the appropriate committee. The Mayor with the consent of the Council shall establish the tasks and the membership criteria for the committees. The reports of the ad-hoc committee shall only have the authority of recommendations to the Council. The Council has the authority to follow the recommendations, change the recommendations, refer the matter back to the committee or take any action it sees fit. CITY OF ASHLAND Council Communication AN ORDINANCE AMENDING THE ASHLAND MUNICIPAL CODE, LAND USE ORDINANCE, CONCERNING CONVERSION OF EXISTING RENTALS INTO FOR-PURCHASE HOUSING IN MULTI-FAMILY ZONING DISTRICTS TO PROVIDE ADDITIONAL INCENTIVES, CONTRACTUAL COMMITMENT, DENSITY BONUS AND OTHER VOLUNTARY MECHANISMS TO INCREASE AFFORDABLE FOR-PURCHASE HOUSING STOCKS AND AFFORDABLE RENTAL UNITS IN MULTI-FAMILY ZONING DISTRICTS Meeting Date September 4, 2007 Department Community Development Contributing Departments: Legal Approval: Martha Bennett Primary Staff Contact Brandon Goldmap 552-2076 E-mail: qoldmanb@ashland.or.us ::;;.t,c: Secondary Staff Contact David Stalheim 552-2043 E-mail: stalheidlOJashland.or.us Estimated time (30 min) Request: Second Reading of an ordinance amending provisions within the R-2 and R-3 multifamily zones (Chapters 18.24.020, 18.24.030, 18.24.040, 18.28.020, 18.28.030, 18.28.040), and procedures section (18.108.030) of the Ashland Land Use Ordinance relating to the conversion of existing multi-family rental units into for-purchase housing. Background The City Council held a hearing on the proposed ordinance on June 19th, 2007 and continued the First Reading of the ordinance to the August 21 5t regular meeting. At this meeting the City Council approved the first reading of the ordinance and directed staff to modify the language in sections 18.24,040L and 18.28.040L to remove the qualifier "as now or hereafter amended by the Ashland City Council." In reference to Resolution 2006-13. This term has been removed from the ordinance as currently presented. Upon further review of the ordinance the Legal Department has determined tllat the term "existing multi-family rental units" should be further clarified in the ordinance. As this term could be interpreted to mean either: · units that were in existence on the date the ordinance goes into effect, or · units that are in existence at the time an application for conversion to for- purchase housing is filed. Staff has provided two options for consideration below which would distinguish between these two distinct interpretations. Options Option A The following definition would establish that the proposed ordinance would only apply to conversions of apartments that were built prior to this ordinance: rj.' CITY OF ASHLAND The establishment of criteria of approval establishing a requirement to retain rental units, or to provide a percentage as affordable housing, for the conversion of existing apartments into for- purchase housing is supported by both local Council Goals, elements within Ashland's Comprehensive Plan, the Ashland Housing Needs Analysis (2001) and Affordable Housing Action Plan, and the Oregon's Statewide Planning Goals and Guidelines. The specific sections of these documents that identify the public need to preserve multi-family rental housing as a needed housing type within the City of Ashland are provided in the Staff report dated October 10, 2006. Council Options: . Approval of Second Reading of the ordinance with amendments by reading in full any new sections (Option A or Option B as selected) . Deny the ordinance as proposed. Attachments: . Amended Ordinance No. incorporating either Option A or Option B as presented in this Council Communication Amending the Land Use Ordinances Concerning Conversion of existing multi-family rental units into for-purchase (Chapters 18.24.020, 18.24.030, 18.28.020 and 18.28.030) of the Ashland Land Use Ordinance Provided in the June 19th 2007 Council Packet . Ordinance No. Amending the Land Use Ordinances Concerning Conversion of existing multi-family rental units into for-purchase (Chapters 18.24.020, 18.24.030, 18.28.020 and 18.28.030) of the Ashland Land Use Ordinance . Exhibit A: Options for Conversion Matrix . Exhibit B : Actual Unit Table: Conceptual Conversion Alternatives Provided in the April 17th 2007 Council Packet . Applicable Oregon Revised Statutes . Table showing 2007 Fair Market Rents as defined by HUD . Table showing 2007 Area Median Income including 60% and 80%AMI . Resolution 2006-13 (SDC Deferral Program) . Staff Report dated October 10, 2006 . Planning Commission Study Session July 25, 2006 . 10/24/2006 - Planning Commission Public Hearing minules . 10/10/2006 - Planning Commission Public Hearing minutes . 8/21/2006 - Housing Commission public hearing minutes . 7/25/2006 - Planning Commission Study Session minutes . 7/20/2006 - Ad-Hoc Committee meeting - and Planning Commissions minutes . 6/27/2006 - Joint Housing and Planning Commission Study Session minutes Letters Attached:. Provided in the June 19th 2007 Council Packet . Philip Lang Letter dated March 26, 2007 . Melanie Mindlin Letter dated April 11 , 2007 Don Skillman Letter dated July 28, 2006 Brandon Goldman response to Melanie Mindlin letter (questions) dated June 11 2007. 3 r~' outdoor recreation space, maximum permitted floor area, waste enclosures, parking and bike storage. Table 1 Affordable Affordable Rentals(per Ownership (per Section Number of Dwelling Market Rate Section Market rate 18.24.040.L.5 Units on Tax Lot Ownership 18.24.040.L.5.B rentals .Al 2-4 100% 0% 0 0% 5-12 75% 0% 25% 0% 13.24 50% 0% 50% 0% 25-48 25% 0% 75% 0% 49+ 0 0% 100% 0% 2) Existing multi-family rental unit structures may be allowed to convert all or a portion of the structure as set forth in Table 2 and the standards below when the existing structure does not meet anyone or more of the following general regulations of the zoning district: permitted density, yard requirements, maximum height, maximum lot coverage, outdoor recreation space, and maximum permitted floor area. a. Conversion of an existing multi-family structures to for- purchase housing shall comply with the following general regulations and the site design and use standards of the zoning district: number of bike and automobile parking spaces, trash and recycling enclosures. b. Conversion of existing multi-family structures to for- purchase housing shall demonstrate that there are adequate public facilities and public services available to serve the development, including but not limited to water, sewer, electric, fire protection, and storm drainage. c. Conversion of existing multi-family structures to for- purchase housing shall improve the street frontage to meet adopted Ashland Site Design and Use Standards and Street Design Standards, including landscaping, sidewalks and street trees. CONDO CONVERSION ORDINANCE AMENDMENT 20f8 6) Prior to offering any units for sale the developer must comply with section 15.104 of the Ashland Municipal Code 7) Conversion of existing rental units into for-purchase housing shall comply with the tenant rights provisions under Chapter 10.115 of the Ashland Municipal Code. 8) Insert either Option A or Option B here as selected by the City Council at the second reading of the ordinance on September 4,2007. SECTION 4. Section 18.28.020. of the Ashland Municipal Code is amended to add the following new paragraph 18.28.020. K, as follows: K. Conversion of existing rental units into for-purchase housing when authorized in accordance with Chapter 18.28.040 (L) SECTION 5. Section 18.28.030.J. of the Ashland Municipal Code is amended to read as follows: J. Condominium conversion of mdsting rental units subject to ~I Type I procedure and demonstration that at least 25~(' of the residential units are 3ffordable for moderate income persons in accord with the standards established by resolution of the I\shland City Council through procedures contained in said resolution. Current residents of rental units proposed for conversion to condominiums shall have first right of refusal to purchase the unit. SECTION 6. Section 18.28.040. of the Ashland Municipal Code is amended to add the following new paragraph 18.28.040. L, as follows: L. Conversion of existing multi-family dwelling rental units into for- purchase housing including the demolition of existing multi-family dwelling rental units, is subject to the following: 1) Existing multi-family rental unit structures may be allowed to convert all or a portion of the structure as set forth in Table 1 provided that the existing structure meets the following general regulations of the zoning district: permitted density, yard requirements, maximum height, maximum lot coverage, outdoor recreation space, maximum permitted floor area, waste enclosures, parking and bike storage. CONDO CONVERSION ORDINANCE AMENDMENT 40f8 Table 2 Affordable Affordable Ownership Rentals(per Number of Dwelling Market Rate (per Section Market rate Section Units on Tax Lot Ownership 18.28.040.L.5.B rentals 18.28.040.L.5.A) - 2-4 75% 25% 0 0% 5-12 56.25% 0% 25% 1875% 13-24 3750% 0% 50% 12.50% 25-48 18.75% 0% 75% 6.25% 48+ 0.00% 0% 100% 0.00% 3) As an incentive to provide affordable rental housing units above minimum requirements in projects of five or more units, an applicant shall be granted an equal percentage of for- market ownership units per Table 3. Table 3: Affordable Affordable Ownership Rentals(per Number of Dwelling Market Rate (per Section Market rate Section Units on Tax Lot Ownership 18.24.080.L.5.B rentals 18.28.040.L.5.A) 2-4 na na na na 5-12 68.75% na 0% 31.25% 13-24 62.50% na 0% 37.50% 25-48 56.25% na 0% 43.75% 48+ 50.00% na 0% 50.00% 4) Units designated as market rate or affordable rental units shall be retained as one condominium tract under one ownership. This remaining rental tract shall be restricted from further consideration of conversion to for-purchase housing. 5) Affordable Housing Units provided under 18.28.040 L(2) and 18.28.040 L(3) shall meet the following affordability standards: a. Affordable Rental Units shall be affordable for rent by households earning at or below 60% of the area median income in accordance with the standards established by Resolution 2006-13. b. Affordable Ownership Units shall be affordable for purchase by households earning at or below 80% of the area median income in accordance with the standards established by Resolution 2006-13. Resolution 2006-13 CONDO CONVERSION ORDINANCE AMENDMENT 60f8 The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of ,2007, and duly PASSED and ADOPTED this day of ,2007. Barbara M. Christensen, City Recorder SIGNED and APPROVED this _ day of ,2007. John W. Morrison, Mayor Reviewed as to form: Richard Appicello, Acting City Attorney CONDO CONVERSION ORDINANCE AMENDMENT 80f8 CITY OF ASHLAND Council Communication An Ordinarlce Re_visirl_9 Ashli:lndEthic~ P~ovisions (J\M_C~.Qa.020) Meeting Date AuqU5! 7jd,007 Department Legs'1 ' ContrlbutlnC) Depar1menlsnnn~ J~ Approval Martha B7!'/1/ Primary SlaH Contact Richard Appicello E. mall applcelr@ashlandorus Secondary Statl Contact E mall Estimated 1lme. 20 minutes Statement: Altached pteilse fmd two ordinances 1he fllst orellnance IS the marked up verSion Ihe COUrlClt has seen thru Aprrl 2007 1he second ordinance (version 2) IS a clean copy ollhe fllst ordinance wllh a few recommended changes made aHer I discussed the orlJlnance with the Planning Commission You have seen Ihls ordinance once belore 1he differences occur rn Paragraph E, E I and H and are discussed below Both ordinances would amend Ihe ellllCS provIsions In Ashland MUrllclpal Code III accordance With CounCil direction from last year 1 he primary change IS to also Include elected otflclals and appointed otflclals In lis applicability. A prOVision restnctlng appomted oHlclals Irom representing clients for hlle belore any body ot the City on a matler that will or has come before the body to which the offiCial IS appolnled to serve has been added. (Paragraph E 4) Addllionally, procedures lor addreSSing llie applicability of the code provIsions has been added, wilh the City Administrator making that delermlnation lor applicability to employees and the' City Council (1" ordinance) or Mayor (i"" orrJlnance) making the determrnation 01 applicability to appointed and elected otflclals 1he CounCil Will be asked to conSider additional JudiCial EthiCS In a separate ordinance Background: 1he Ashland City Council held a study session March 6, 2006, to diSCUSS the pOSSibility 01 amending the ethiCS provIsions Within the Ashland MUflIclpal Code Atfer caretul conSideration the City Council Indicated an Interest in 1) Amending the Elhlcs provIsions currenlly In the Ashland Municipal Code to be applicable to elected and appOinted atfiClals in addition to applicability to city employees, 2) Adding In a procedure for Invesflgaling and entarclng the ethiCS prOVISions, 3) Adding a prOVision Similar 10 provIsions In Ihe Gresham City Charter which would require Ashland to have ethiCS prOVisions In lis municipal code which can be enlorced locally. 1he proposed ordinance would amend the ethiCS prOVisions In the Ashland Municipal Code 10 apply to elected and appointed olficials in addition to employees Additionally, the amendments would prevent an appointed offlclallrom representing clients for hire before any board or commission or before the City CounCil on maNers which would come betore the board or commiSSion on which the appointed offiCial SitS. (Paragraph EA) The proposed changes also add exceplions for the use of public property for private benefit lor ins lances which are specifically set lorth as a benefit of employment and for tile granting of special treatment or advantage to a citizen when provided for by law. (Paragraph 0.2) Finally, the proposed ordinance permits determinations of apptlcability by the City Administrator lor applicability to employees and determinations 01 applicability by Ihe City Council (1st) or Mayor (2nd) tor applicability to appolnled andlor elected officials 1he sanclions paragraph has been amended to proVide Violations are considered cause for diSCipline After mformal diSCUSSion ot the ordmance With the Ptannlng Commission I recommended a lew changes to the draN ordinance To address slatutory requirements for some Boards and CommiSSions, the first Paragraph under E now contains the tollowing disclaimer al the end !'.! ~ ORDINANCE NO AN ORDINANCE AMENDING AMC 3.08.020 TO APPLY ETHICS PROVISIONS TO EMPLOYEES, APPOINTED OFFICIALS AND ELECTED OFFICIALS I Annotated to show deletions and addition~--to the code se~tlons being r;;o-dllj~d D~lellon; ar~ -l hned IhlO'1lh and addltlo"s ar~ underllned_ .. ______ RECIT ALS T he City 01 Ashland IS commitled to the highest ethical standards lor lis public otllclals 2 As a statemenlln that regard, In addition to any standards set forth by the state, AS~lland has had ItS own ethics provIsion applicable to public employees lor more than 25 years 3. As a sign 01 contlnurng commitment to the highest ethical standards Ashland deSires to extend applicallon of ils elhlcs provisions 10 appointed and elected officials. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS .5ECIIQtLl SeclJon 308.020 ot the Ashland MuniCipal Code is amended to read: SECTION 1.08.020 Code of Ethics. ^ DccL}priQJLDLPuhcy The proper operation of democratic government rcquHcs Ih;)1 publis:_qfJlci<:ll~> in,:lutJ}ng eh~~Jed___~)flICl(lJs, _appo.inJcd.--.clfL(,;@Js __;lnd employees be mdcpendelll, Hnpania] and rcspoflslble 10 The people; thaI govenunenta! deciSIOns and policy be made Hl the proper channels of fhe gnvenullcnlaJ stnlClure, Ihal public office nol be used for personal gain; and that Ihe plJblic have umfldcllCt: In Ihe integrity of lis government. In recognition of these goals, there is hereby eSlilhlishcd a Code of L111JCS for all ell1ftI-oYeelp-.l~bJj~ J2ffIci~I~, whether paid Of UJlp<llll The purpose of this Code 1$ 10 establish ethical standards of conduct for aJJ entpteyeesQ!!bilc_off.l~j_;'-tb hy scttlllg fonh those aels or actions that are incompatible with the best interests of the City of Ashland II IS also Ihe purpose of Ihis Code 10 assisl emj>Ioyeesl2.ublie OJfICI;lI~ in delcnnining the proper cour::iC of actlorl when faced with unccnainty regarding the propriety of a contemplated action, thcJ{;by pa:venllllg them from unwittingly entangling public and private interests. Through 3doptJOTl of Ihis Code the City hereby expresses its inlenl 10 maintain high ethical standards in the Cily service, and to IncreaSe public confidence in the integrity of City emplo-yeesR-ublic QJficI~!s. IB Res!,onsibiJ)tie.:;._olJ'ubl'LQrfl."!' ~yeesPublicnoffll'ials are agents of public purpose and arc etnf'lnyetlmgageJ1 for Ihe benefll of the public They are bound to uphold the Constltutinn of the Uniled Stales and the Constitution of this State and to carry out imparlially the laws of the nation, stale (lmJ the City, and thus 10 fosler respect for all government. They are bOUIld to observe in their ofkwj acts Ihe highest standards of morality and to discharge faithfully the dutres of their ollice regiHdles's of personal eonsideralions, recognizing that the public interest must be theif primary concern Page I of 4 FlLEN AM F \p ~;_:\k:UlL\M il<.e\lli~ti_r:!;:lJ}.h~~\E,hig A_'!lendrncnl$_D.l9.,_-_]'_doc~~i~.el,Q~enees~lh!li:-Am~~tt~ :-~, ~r-'>1~tH-\Mtke\O,dj.ft6n-r-es\E Ihi-es-A men-dmems-:dee C[)cdJc:aUO,i Service All empl"yeespubl1c oLflcIals of Ihe Clly should he It'yol wQlk 10 sUPPOI1.ll1e POIIIH_:al objectIves expressed by the electorate ;md the programs developed 10 :lllain those objecl1Vl's Appoinllve Q[fl~L'1]?jH](f_ employees should adhere to the ruks of work ;1nd perfO/manee cSlablJshcd CIS the standard for thelT pOS111OJlS by 1he appropriJ!c ,lLll!-Jonty - Ffnptnyee5__ P.1!bkgf[KJa/s should /lot exceed rhelJ aUlhmity OJ breach the law or <lsk others to do so, (Inn lhey should work U1 full coopeJ;JJlon wIth other enJp~oy-t.-"eSDqbJJ<;-.!)fj]qit]S unless prohJbilCd from so dOlng by law or by offICIally recognIZed contldellllal]!)' of,hcJJ work J) l-au _i1J)~Jfc@9LJrGillJ1H~DI ln1erf5JI!!A.Q.l2Q!ill!Jlenls CanV3SStng ofmnnhcrs oflhe Councr! or Mayor, dntelJy or IlHJlrCClly, III order 10 oblam preferenll;11 considcr311on III COIlTlt'Cl10n WIll! ;lny appoiJltment 10 !he elly scrvlce shall disqualify lhe c.1ndldate for <1ppOlJlIlllCllt except wIth reference 10 positions filled by :1ppollJlment by Ihe Mayor or Council tJs~ Qf Pu_b)j~ e!.QJJ_cny_ No emr~eJ'ee--PLJbilC offlCEJI sh;dl reqIJesl or pcrmll the use of city-owned vehicles, equipmenl, malerials or propcf1y for personal COIlVeJucnce or profIt, except when such ~ervices cue available 10 the public gener;,dly or ;lre prnv)(kd as Illunicip;l) policy for !he use oj such employee ITJ the conduct of offIcIal husiness _Dr. aS~l ~.Re(jfiCj!lly_ dc;:JIJl~J bcn(~_DJ 10 C9mp'q~-,~1 iOIl QL~rnrrlQyrl1~nJ OQl1galjo_n~_J9---.CjJj:?:~J]1i. No ~ftyeep\]hlic _QfJI~lal shall grant ilIlY special consiJCr<iIJOJJ, Irealment or advanlJgc 10 ;my citizen beyond Ihilt which IS available to every other cilizen _c2i5_'Cp! ,tS _() t l] q~I-?~_permiJ! ~Qj;ly_illW orJ!rt!iIJ,H}_<::_~ , j L ~,:_OI~_fllct__QJ Inl_~rcsl. NO---enlp~o:yeeI2!JtJh~ QJliCl}l, whctho p:mJ or llJlIXml, shall engage lJl any business or transaction or shall have a financial or olher per-sofl;}llIltercst, direct or indirect, whJCh IS lTlcornpalibJe with Ihe proper discharge of Ihal em-ployee's-PJJbhc offlci~_J's_official JUlies in !he publiC mlereSl or woulJ tend 10 impair independence of Judgmcnl or action JjJ the pcrfonnance of Ih;}t entp~o)'ee~sI2!JpJj~_QlIlci~J~ of[]cial Julies, Personal, as dislmglllshcd from financial, inlcrest includes an mleresl arising from blood or mJmage relalJOflships or close rlllsmess or political assoCiation SpecifIC conDicls of mltrest are enumerated below for the gllld,lI1ce of employees,; I ln1,;5)mpaljbkJ:,mvlovme/l!. No employee shall engage in or accept pnv<lle employment or render servIces for privale interests when such empJoymenl or servIce IS lIlcompatible wllh the proper discharge of Ihat employee's official duties or would lend 10 lInpan independence of judgmcnl or actIOn in the pcrfonnance of thai employee's offlciaJ dutles. 2Dlscl9sur~_QLC:()nfidentiallnfonnatjn!J No epyQJlu)ffl~laLmployee shall, wllhout ploper legal authorization, disclose confIdential mfonnallon concerning the property, government or affmrs of the City. Nor shall any etflJ'k>yee-pubJl~.-,)fI]IiaLuse such IIlfonnalJOn 10 advance thm fmancwl or pnvate interest, or the financial or private mleres! of olhe,s 3 Glfts ami Favol'>. No empJoyee-publi,ofTlcj~1 sholl accept any valuable gift, whether in the forlll of service, loan, thing or prornlse, fJOrn any person, flTln or corporation which 10 their knowledge is interested directly or indircr:tly in any manner whatsoever lJl business dealings with the Cily: nor shall any such empJoyee (l) accept any gift, f3vor or IhJJJg ofvaJue that may tend to JIlfluence Ihe employee in the discharge of their duties, or (2) grant, JT) the discharge of thcn duties, any lInproper favor, service or thing of value. 4 RCJ2!.!:sentine Privat,c Interests. Before CilY i\gfn_c;ie~_Q[_J~'oJrrts No employee whose salary IS paid m whole or in part by the City sh311 <lppear lTJ behalf of pnvate interests before any agency of the City An employee shall not represent pnvale interests III any <let ion or proceeding ,Jgamst the mterests of the City in any litigalion to which the Clly IS a pany, unless the employee IS Page 2 of 4 FJ LF NAME \p G:\Jel!al\M ike\Ordinanl;_cs\EthjILAmef"!QJl~_lm_Qrd LJJ()~~ 1,\-eg!t!Wihe\.0f-thn_J!f1eeJ\Bms.;1 /ifflXl:>t:hn.ffi:i:;t.-Qrq ~{ ~~G-'-lJ~-fit\M-tke\G-ti-J.ifffil'l-ef'":1\Ethles---A--men-6mentS-_d{}{' repreSCnl]ng hlTJlselJJher::;e1f as a private cillzen on p\ITcly personal husiness NQ__appoi[ll~d Qff]CJ(lJ ~>h~.ll Icpresql! a _~tIfJIL fQLhire _t:Lejorc_J~c Q9af(toJ_c.Q11)m}_~~IOI)_ to':YhlClJ ID.?t ofr!t;i~lj .IS 3PpOi ]l.!_c~t qt_ m _ a.nyact ]9~__()t_PJJ?~J~cC)ing bcfQre _ <InmDQ... bO~J.~L~Qlnmj_~?jon~~! ! he JJ!Y_c.Ot~_pr;]J Wl a J!latt~r whic_h cafl1~_yr.lVjli__~91Il~.b<;IQIe the_ board_!11 .cO.JIll.ru)_SIQ}LLQ ~hL~h tJl..;]LQfJ)ci~ IS appo]nled No empHJ)'t-Y-PYJ2licglfiqalshall accept a rel<Jiner Dr compCnSill]on thaI IS cOlltlOgent upon a spenfJc a(1!on by frlh~City~.geney 5 C~)]jlracls with ID_e---.i-ity ^ny e-tJlftloyeepuQj)~ Offl~lQI who has ;J substantIal or controlling 1"1l1,lIlC)al ]nlcrcslm any business entity, Ir,lIls<lct)on or conlracl with the ell)', or lJl the sale of real eslale, malcfltlls, supplies or services 10 the City, shall make known In the: proper aulhority such Inlerc.')l In allY mailer on which that employeeQJ)hlic 9[rl~i~.1 may be called 10 (Jct m an offlCial Cap,lC]ty "ilK empl(}y-eeQ\lbli~__Qf[ICJaJ shall refram from par1icipalJOg ]11 the tr,Ulsaction OJ lhe rnakmg of such contract or sale. ^n Cin-pjoyeepllbhS:_...2ffi~@J shall nol he deemed interested III any conlracl or purchase or sale of land or other thing of value unJcss such conlract OJ sale is rccQJJ!!n~Wlfst approved, awarded, entered lillo, or authorized by the empl-oy-eepubli_c.:_Qffi~~111n an ofrlci~l capacIty 6 nissJ~)~\!L~__Qf_ln[er~st in LC;gi~JQ1jon. ^ny employee_9Li!rJ29il1!~~:L!~_niclaJ who has a financial OJ other pnvale inlerest, and who paJ1Jcipates in discussion with or gives an offIcial opmioll to the Council, shall disclose on the records of the Council or othef appropriate aUlhority Ihe nOllme and cxlcnl of such inlercs1. t l)oli!!~_("J.t_6.IJ)~H.Y. No employee mthe adminislrative service shall use lhe pJeSl1ge of their position III hehalf of any pohtical par1y. No employee in the administrdtive servlce shall orally, by letter or otherwise, solic]t or be in any manner concerned in soliciting any assessrnenl, subscnption or contrihul10n 10 any polilical pany; nor shall an employee be a pany 10 such soIiClt.1l]on by others; nor shall an employee lake an active par1 in political campaigns for candidates while III the perfoTlnance of dUl ]es In an offICIal capacity. No entpJuyeepubli(':Qffll,;Lal -shall promise an appointment 10 any municipal posillOll as a reward for any politICal activity I G. [\pplicabJll!LQ[ Code ,_Employee,~ When an employce has doubt as to the applicability of a provision of lhis code to a particular siluation, they should apply 10 the City Adlllll1JSlrator, who lS charged with the implementation of this code for an advisory oplllion, and be guided by that opmion when given. The employee shall have the oppor1unity to present lheir interpretatIOn of the facts at Issue and of the applicable prnvision{s) of tbe code before such advisory decision IS made. All such requests for advice shall be trealed as confIdential. This code shall be operative in all IJlstances covered by its provisions except when superseded by an applicable statute, ordinance or resolution, and each statute, ordinance or resolution action is mandatory, or when the application of a stalute, ordinance or resolution provision is discretionary hut detcrTTlined 10 be more appropriate or desirable. lLi\Jlplicabihty of~odL:c_ 1WJlJ)inted aDd Elg:lclOfTt,,-als When an appointed offtC1alo,_an e1~cted ofjjc!'!LmJ;<!Qubl. as~_ theapplicabili]y !2f-"-proyi~ioT1--,,LJbis sode 1<LU)3mc}llarsituationLlhD' should appJytoJh~Clty ~CouncILJ()L<' determirl?tlJ)n~_The official seekmg1lJl_etclJTUnatioll shall ha", Lil~_ 9PP.Q[l ur!ily_ tQ_ RI.:~seJ]!...El!Yl ac:J_~_tJJty~~rIuel ey(iDl J 9 '-be d et ~rn}i nah on .__Th~y_ sJ:h1IL;I)~Q. ha ve th~ .9[>P...2!11JnitY-~_Ql~.fJ1L...mJY __~m~J1Llh~y _m~y._JH_yc;~~~hat. J~t:;-Y__Q~em -,m __~PPlQ-PLiQli: Page 3 of 4 Fl LENAM E \p (j:\lew~jke\Ordi[lance~\ElhiqAmendmCllIS Ord_, 2c_docC:\lebfi!lJ.1i~~_ih~m\Etl~_::6mene-tnt'ttL~9 -:~2c~l,legftl\M-ike\9tfliftftftees-I,Etfties-Amenlhf'l-{'ffl-'l_~ Q~J~nn!lEJJ1P!L 'J~h~_.J~J!YJ:OEns.:)l,Jb~ Iv:tQYOLoU)leJ-_'I!j' 8<lWH1LSt.r.a1iH T110Y r_eq\Jc;o;J. the Cl~Y- ;\lU)n.lCY !~!.. !2r9V)(j~~)1 ;~JJvj_~Q[Y-JJP))lJU.l) b<l~<;(l Llp_QI1Jhc__t~~l~ D!q_~nJJ:d Thc_del~IJnJDJ1JQJ]DJ 1 h_fCll_y ('(Jl}I.l_Cl) a:U_9J11_(-,:lDDI1_~~hih!Y_.QJ a_prQ~lSJ5J1] Q[tDL? CQQGJ_O iLQarttC:.1JIQ.J ;;!!Ut~t]()1J _~balJ_h.~ fll!~L _ _ _12..c hni!1_lill0 -'1 - F)"!]J.lJ9-Lt;.~ - (o_r Jube_Qul])pses_o fJhlS _~~ClJ.QI1~ Jhe_l~nll_smQto'yc:e_sJl(l]jln_~,1J~J)[lt;__~vhnu I S Illr t:(t ;lJld p_~_l.d a _~y_~g C__QL _~a 1Try_ I_V '-Y_ork.J{)LLh ej~jJY_Dt b~r .lh;lJ) __d _G_~J~Qr.i1 pno i_nl e<lo J(~QJ1~ 1)___.API]OJll[cQ_OfDs_1Jl _ f9r,!JJ~ m)rpQ~~LQC!bj_u_G.~J.ioD> ,!11e"ICfTD "_;lppqlP.t~d_.orJJ~Ja)~ _SbjllJln~':ll),,~ PGn;CH.1 whQ -'S9-QRDi,rrtG~U_9__~C,QI~ O~U)IL~__9ft_bG__r ItY:_SJ~}Oi:!Eds _{.II _~O!l)rni_SS1__DllS_1l1l.9_~)J~JJ A L<;QJn_~_;~_DJht: (jl.Y_l\~jD1W)SJE!lOJ_ill)d_Cily AU9nJ~Y, 3t 1)~cted_Onjq9_L-=- fQrth~ WlfP_o,s_es QJ tlu...s s_t;:~JI_QJLJ::I~_<:led ~}ffi~'lal s11(111 n)g~!LQ11t;__\yho Jj ~:J~<;l_S-'Jj byth<;regj~ICJg_<l_YQ.1.(rsnJ [))~CIJY OrASJlh!~l!U(:~_)t:!Y_G._ll)~Jlly and s~nJI Jnclu_d(?' _Jh~ M_il},Qr, Jhc_cUY CQJJDCl lQI s, Jhe elJ Y IIToEteL_! h~ __DJuniCJ P<:d_l!!_9 gG..iI!lQ-,h~ pmks<:OIl)nl I 501 ()Ilqs )H Sa[)clJQns V t-ohHiO-ftot=--nny- p-t-e-v-fStOf1S----O~ t}us-eode .shottlfi- Htt~-e eOf1setenltous-qt:le5l--tOH-S f~)f--ffte em-ploYt'e- L"eneerned-ft-:'r +0 whd ltef. vohmlnry--res-tgnat to-H.Oj- olher f}{'l tOH1S ,-nd-i-eet-eJ--to- t)fOlHfHe- t he besl--mler-es-t-ofthe+~it-y VlOlation_Df any -PLovjslQD oInu_s 5~CI!QJ:L _d~ltT!.D.HL~d._-':ln.~r Do.!l<:;e ~nd AD QPPQ}1l:l11ity tQ_h:ell~r.(t shall constitute cause for disciplinmy actIOn The foregOing ordinance was first read by title only in accordance with Anlcle X, Seelion 2(C) of Ihe City Charter on the _ __, day of _ 2006, and duly PASSED and ADOPTED Ihis,__ day of_ 2006 Barbara Christensen, City Recorder SIGNED and APPROVED this day of ____, ,2006 --,- John W, Mornson, Mayor Reviewed as 10 form: Michael W, Franell, City Attorney Page4of4 F] LE NAME \p G: 'Ie Q n 1\/\.1.ik e\Qlilir!a.Qo;:_~~_~\E JhlC.;;...Am_~ndm~nli_DT !LJ. 9..Q~~~~!.W~k-e\Ql~!!)iUL~lli-h.i-e.?-~:ilill~':!i!~-Of-d --~ .do<;:G:-\-J--egfl--I--\ik-e'\-9JdinfifH~-e'hi-es- ^1l'I-efKI1~-S-:43-c Nothing herein prohibits a publrc otEcer tram engaging in any business, protesslon or employment that IS permitted or required as regards the composition at a Board, Commrsslon or Committee, (eg Planning Commrssroners engaged In real estate pursuant to ORS 22/ 030 or BUilding Code Board at Appeals, IAMC 1504200] members engaged rn specrflc trades) Similarly, because state law IS sometimes stricter, clarification was added in a new paragraph E 7 7 More Restrictive State Law Provislnns Nothing in this ordinance relieves or excuses public otflcers and employees from compliance with more restrictive state laws applicable to Ihe partrcular public positron, (e,g Planning Commlssluners are subject to more restnctlve Confilct of Interest ProvIsions pursuant to ORS 244 135,) Finally, tor effiCiency, under paragraph H, the determination was given to the Mayor with a pOSSible call up by the Council The determination of the Mayor as to the applicability of a provision of thiS code to a particular situation shall be final, unless a majoflly of the COlJOcll calls up the determination for review by the full Council at the meetrng follOWing the determination Related City Policies: None Council Options: The Council could adopt the proposed ordinance (version 1 or 2) amending the Ashland ethics provrslons as stafed above The Council could suggest changes to amend the proposed draft ordinances. The Councrl could reject the proposed chanlJf's, thereby, leavrng the ethiCS provisions applrcable only to Crty of Ashland employees Staff Recommendation: Staff recommends the City Council adopt (Version 2) An Ordinance Amending AMC 3,08.020 To Apply Ethics Provisions To Employees, Appointed Officials And Elected Officials by trtte only on fllst reading and move 10 second reading. Potential Motions: I move the Council adopt (version 1 or 2) An Ordinance Amending AMC 3,08.020 To Apply Ethics Provisions To Employees, Appointed Officials And Elected Officials by fitle only on first readrng and move to second reading I move the Council adopt (version 1 or 2) An Ordinance Amending AMC 3,08.020 To Apply Ethics Provisions To Employees, Appointed Officials And Elected Officials by title only on fllst reading as amended, , , and move to second reading (Note: If you make amendments, please be sure to identify the included amendments when makmg thiS motion), Attachments Proposed ordinance (version 1 and 2). ~4. IF.." ORDINANCE NO. AN ORDINANCE AMENDING AMC 3.08.020 TO APPL Y ETHICS PROVISIONS TO EMPLOYEES, APPOINTED OFFICIALS AND ELECTED OFFICIALS I Ann~i~ted to show d~l~tlons and acldlllons to the corJe-sectlons beln9 ~~cJil;ed- OE:leti~ni- ar~- IlmedthCBt~ andaddltlonsiJre u.!l.derllnE?.Q _ _n_ __ _ __ _ RECITALS 1. The City of Ashland IS committed to the 111(Jhest ethical standards for Its public officials 2 As a statement in that re9ard, In addrllon to any standards sel forth by Ihe stille, Ashland hilS had its own ethiCS provIsion applicable to public employees for more than 25 years 3 As il sign of continuin9 commitment to the hi9hcst ethlcill standilrds Ashland desrres to extend applicalion 01 its ethics provIsions to appointed and elected offiCials THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS SECTiON 1, Seclion 3.08020 of the Ashland Munlclpat Code is amended to read SH'T10N 3.08.020 Code of Elhies. ^ l~t;~aU]Jl!2l:!_qfYQJLc;_y- The proper operation of democr;J1JL' govenlmenl requues that puhhc orfic1<lls, mcllJ(lJng elected ofJJCla]s, appointed off)CJ:i1s ;md employees be 1Ildepcndenl, Impart];]1 ;Jnd responsIble 10 the people, that governmental U<:CISIOIlS ,HJd polley be made m the proper channels 01 the govenlmenlaJ structure, Ih<:lt publIC offIce nol be used I'm personal galIl; and that the publJC have confIdence In the Integrity or lts government In rl'CogJJJtlOn of Ihese goals, Iherc lS herehy estahllshed (J Code of [lh]C5 for a]] pub]JC offlcl;lIs, whClhcr p:lJd or unp;lJd The purpose of Ih,s Coue lS 10 eslabllSh eth,eal sl,mdards of COlluucl for alf pubfre oflielals by sellmg forlh those aels or aellons Ihal are mcompallblc wllh Ihc best mleresls of Ihe Clry of 1\shlmld Ir lS 3]50 lhe purpose Oflh]5 Code to asslsl puhlJc offlCW]S 10 delelTlllIllng the proper COurse of actIon when faceu wllh uncerlamly regaruing Ihe propnely of a conlemplaled acllon, Ihereby prevenlmg Ihem from unwlIlmgly enlangfrng pubfrc and pnvale II1leleSls Through adopllon of IblS Code Ihe City hereby expresses Its Inlenllo mamlam high elh]cal slanuards m the C]ry servree, and 10 mcrease pubfrc conf,dence m Ihe mlegrrty of CJty pubfre oflie]als. 13. Pe;;ponSl!:J.1UI]es of })lJbfr<:..Qn~". Pubfre offlc]als are agenls of pubfre purpose anu arc engaged for Ihe benefIt of the pubfrc. They arc bound 10 uphold Ihe COnSI]lullOn of the Unrled Slales and Ihe Consl]lut]on of IhlS Slate and 10 cany out Impartlally the laws of the nation, slate and Ihe CIty, and Ihus to fosler respect for all govemmcnt. They arc hound to observe m Ihen oflic]aJ acls tire hlghesl standards of moraJJty and to (llscharge faithfully ilw dul]cS of thclT off]cc regardless of personai conslcJer31jons, recogmzmg that the publ1c mtcrcSlmusl be then pTlmary concern C Dcdrcated Seryrce 1\11 pubhe offie,als of the City should work 10 support Ihe pofrlrcal obJeellves expressed by the electorate and the programs developed 10 atlam those obJectlves. AppOlTll]ve Page t of LI offl('](I15 and employees should adhere to the rules oj work and performance establIshed as the standard for Ihen posltJOns by the appropn,llc allthoTJty Pubhc offIcials should not exceed IhelT outhollty or hreach the bw or ask others to do so, and they should work In full coopcratlon WIth other publJe offJClals unless prohIbited from so dOing by law or by olTIClally rccogmzClI eonfldenllalily of then WOlk j) Fan and JqualTreatmenl. In-'SJt;_st m/)P1?21flJrnenI0 Canvassmg of members of the CounCIlor Mayor, dnectly or IIldlTectly, 111 order to oblall1 prcfercntl,:d eonsldcr,ltlOn 10 connecllOn WIth any Jppomtmcnl 10 the Clty serVIce shall olsquahfy the ellnOldatc for appOlTllmCn! except WIth reference to unp3Hl poslllons I'dled by appomtment hy the Mayor or (ouncd 2 Use of Publ1~property No puhhe olTIClal shall request OJ perrmt Ihe use of clly,owned veblcles, equIpment, mlltenals or property for personal eonvelllenec or profIt, except when such serVIces ,He avallablc 10 the publJe generally or ,He provIded as 1l1uTllclpal polICY for the use of SIJl:h employee m the conduct of offlcJ<:l! husmcss or as OJ specIfIcally defmed benefit 1Il compensatIOn of employment 3. ~)bll~<!l!9ll?!O._C:jllZ~D._~. No publIC offlual shall grant any special conslderatJOn, trcatment OJ advantage to any CI!lzen beyond that whlCh IS aV~ll13hle to every other cltlzen except as othnwlsc penlllttcd by law or ordinance. F. (>mJh\..t oJ JDJQ<:?L No pubhc offlclal, \vhelher pald or unpaJ(L shall engage many husmess or transactIon or shall have a fin3nclal or olher pClsonaJ mlcres!, {hreet or mdnect, whlCh 15 mcompatible wllh lhe proper discharge of that public ()ITlcl:lJ's olTlclal dul1es m the puhhc mleresl or would tend 10 l1npaJr mdcpendence ofjlJdgrnent or actJOTl m Ihe pcriOrm3JlCe of lh31 pubiJc offlCl(l1'S officJaI dutIes Personal, as dlslmguished from fmancl;)!' mtncsl mc]udes an mteresl arlsmg from blood or marTJage rcl;Jll0nshlps or close busmess or pohtlcal assouJllon Nothmg herem prohibllS a pubhc offlCcr from engagmg lTl any husmess, professIOn or employment t})()l lS permJlted or requITed 3S regards the composltlon of a Board, CommlSSHH1 or Commll1ee, (e.g. Planning ComrmssJOners engaged in real estale plHstlant to ORS 227,030 or Bulldmg Code Boord of Appeals, IAMC 15,04200] members engaged m specific trades). Specdle conflicts of mterest arc enumeraled below for gUIdance' l. In.<::grppj!tible._ET1!Q]QyJn~.n.1- No employee shall engage 1fl or aecepl pnvate employment or render servIces for private interests when such employment or serVIce JS Incompatible with the proper [l1schargc of that employee's offiCial duties OJ would tend to nnpan mdependenec of Judgment or aellon m the performance of tbat employee's offiCial dulles 2 [)~clQsur,__ol ConJid,,-ntiaLillformatlDIl No pubhc offiCial shall, Without proper legal authonz3tion, disclose confidential mformatlon concernmg the property, government or affans of tbe Crty, Nor shall any pubhc ofJiClaJ use such mformatlOn to advance then Jinancial or pnvate mterest, or the financial or private mterest of others. 3. GiftS amliav9rs, No pubhc officral shall accept any valoable gift, whether in the form of service, loan, thrng or promise, from any person, jirm or corporation which to then knowledge IS mleresleu directly or indnectly m any manner whatsoever In husmess dealings with the City; nor shall any such employee (I) accept any gdl, favor or tbrng of value that may tend to mJluerJce the employee 10 tbe discharge of then duties, or (2) grant, rn the dIscharge of Ihen duties, any Improper favor, service or thing of value 4, Rep\Ssqlling Pnvale.!J1lerests Before C)tLAgenQ,UI <=:9ur15. No employee whose salary IS paid rn whole or m part by tbe Cily sball appear m bebalf of pnvate mterests before any agency of the Clty _ An employee shall not represent pnvate mterests III any actIOn or proceeding agamst the Page 2 of 4 mlnests of 1he CIty In any I1IJgJtIO]l to WhlCh the CIty IS a pany, unless ,he employee L'J representmg 11lTTIsclUhnself as a pTlvate (Il]/cn on purely personal busmess No appoJJlted offJclal shaJ] rcprCsult a clIent for hill' hefolc the bmud or COTnDllSS]On 10 whIch IhJl offICIal JS JppOlnted or In any actIon of procccdmg hefore 3nother board, COTnrmSSlOn OJ the CIty CounClJ on a matter whlCh came or WJII come btforc lhe board or commlSSlon 10 \vh]ch that olflc],'ll ]S appomted. No pubile offlcJal shall accept a rc11'l1llcr or compenSal]on that lS contlngent upon a speclflc act]on by tbe CIty. ') ConJx.~cts__with .lb~_CllY Any pllbl]c oftlcl.l! who has a subslanlJa) 01 controlling f-JflallClal JI]tercs1 ITl ;my huslTlcss entity, tTansactlOTl OJ contl.lel \\I]th the (']ty, or JJltlle sale of real e~:t:jte, Jll(}lcnals supplIes or serVIces 10 the CIty, shall m,lke known to 1he proper aUlhonly sueh )J)teJTst 1Il any mallcr on whIch thai pubbc off]Clal may be called 10 ;1cl ]n an off]c,"] capacny .1 he pubhc olflclal shall refn-lJn froni partJClpallllg III the transactIOn or the makJJlg of sllch conf/3el OJ sale ^ pubhc ofIlCJaJ shelll not he deemed Interested In any contract or purchase Or sale of bnd OJ other 1hmg of value unless such cuntract or sale JS recommended. approved, avvardcd, entered 11110, or authonzed by the publIc off]cwl JJl an offlclal capaCJty. 6. D]~cJosure qf Jllt.~L~0!JLLLegl_sl~JJj)Jl Any employee or appolllled offJclal who has a fmanc]al or other pnvate mterest, and who P311]CIpates ]ll dISClJSSlO11 with or glVCS an offJclal OpJIlJOJl In the Council, shall (hsclosc on tht records oj the CounClJ or other appropnate authorIty lhc nallHL' and ex tent of such mtercst 7 More RestnctJvc Stale Law ProvJslon.", NDthmg III Ih).'; ordinance reheves or C'xcuses publIc offIcers and employees from compl1,lIlcc \Vllh mOTe restnctlve s1;'lte hws aprl1cabJc to the partIcular publIc posItIon, (e.g. PJanJllJ1g COJlHl)]SSIOnCrs arc subJeCI 10 more restnctJvc ('onfllct of in1erest PrOVISJOnS pllTSlJ3nl to OES ):14 J J.,) ) F PQJjt]q~LA~tJyity. No employee 1Il the adlllllllstr.lllve StTVlce shall use the presl1gt of theIr positIon In behalf of any politIcal p,nty No employee III the adlTIllllstratJvc servIce shall oraJJy, by lcHef or otherwlse, sahelt or be J]) any Tllclnncr concnned III sol]cltmg any assessment, subscnptl()J] or contribution to any pOJitlC;ll parly; nor shall an employee he a paIty to such sollcitalH)D by others: nor shall an employee take an acl]ve pari m jlolil]c;i1 campaIgns for candIdates wb]le lTl the performance of dut]cs m an offic]al capaCIty. No public offic]al shall prOl1lJSe an appOlTltmCl11 ID any mumc]pal posItIon as a reward fOJ any polit]ca] actIvIty. G Appllcab]lIty of Code - J',mpJ(jyees When "11 employee has doubt as to the appl]cab]lIty of a provisIOn of this code 10 a part]cular Sltuat]On, Ihcy sbould apply to the City AdmlTl]strator, who ]S charged wIth the implementatIOn of 11m code for an advIsory OplTllOn, and be gUIded by Ihal op]JlJon when gIven. The employee shall have Ihe opportul1lly Iu present then mterpretatlOn of the facts at ]SSUC and of the apphcable prov]Slon(s) Df Iht code before such advIsory deClslOn ]5 made All such requests for advice sha1l be !rcZl!ed a~; conf:dcn11;J] ThiS coue shall be opcratJve 1/1 "dj JJ1stanccs covered by its prOV1SJOns except when superseded hy an applicable statute, ordmance or resOlutlOIl, 3Tld each statute, ordInance or reso]uIJon ;KtJOn 1.') mandatory, or when the appIJc3tJOn of a statute. ordmaJ1ce or resolutIon pnJVJS10n 1." dJscrctl(J/l:-lfY but dClenmned 10 be more appropnalc or desJT3blc Page30f4 H ^ppJL~,~.hJllt.y__!)f Code 1\12QOI[lI.ut,lI)d I-Ji2SJ(~__(L.()frlcIQ15 When an appom1ed offICIal or an elected offiClal has doubt as 10 the appJlcabll11y of a prOV1~lon of th15 code to a partlcular sltuatloD, they should apply 10 the MClYor for ;) determmatJOn and C"lly Cooncll wJiI be mformed of the mqllJry The offlcwl seekJJlg a delcrIllInalJOn shaJJ have the oppmtlJmty to present any facts Ihey deem relevant 10 the detenmnatJ(}n They shall also have the opportumty to present any argumenl they may have as 10 what they deem an appropnate determmatJon The M;;yor may request the CJty Atlamey to provJde an advlsory opinIOn based upon the facts presented The detenmnalJOIl of the Mayor as 10 the 3ppllcabJllty of a provIsIon of thIS codc to a partIcular ;:'ltuatloll shall he fm,d, unless a JllaJonly of the CouneJI calls up the rkterrllmatJOn for revJew hy the lull CouncJI at the meetmg folJowrng the delemllnallon I. Dc fmrtl"ns I) Employee for the purposes of th" seetJon, the term employee shall mean one who JS hllcd ;;nd pelld a wagl' Of salary to work for the CIty olher thall flecled or appomted ofllclals 2) ^ppolDled OfflClZlI for the purposes of thIS SL'C1HHl, the term "appollltcd offlcl(l]" shall mean a person who is appolTltcd 10 serve on one of the CIty's boards or commIssions and shall <liso mean the Clly ^dlll]J1]stTator and elly Atlorney 3) Fleeted Off,craJ - for the purposes Ill. thrs seelJon elected ofjicJaJ shall mean one who JS elected by the regJStered vllters of the Clty of Ashland to serve the CJty and shall lllcJurle the Mayor, thc CJty counCllors. the elly recorder, (he munlclpal Judge and the parks cOmmJSSlOJll'rS J. 0an~!!9nS YiolZllJOIl of any prOVlSlon of lhls secllon, delermlned after notlce ;:md all opportunity to be heard, sh;]11 conslltulc C311SC for dlsclpl1n3ry actIOn Tile foregoing ordinance was first read by title only In accordance With Article X, Section 2(C) of the Cily Charter on the ___ day at ,2006, and duly PASSED and ADOPTED thiS __ day of ,2006. Barbara Christensen, City Recorder SIGNED and APPROVED Ihis day of ,2006. John W. Morrison, Mayor Reviewed as to form: Michael W Franell, City Attorney Page 4 of 4 lbS Nonh 'vVI~hlnEl1) Sl i\silland (S-l j J ()() J - :::0',3 City CounCil and Mayt1l 70 hlstl'v1ilJn St i\shlilfld OJ< ')}\70 f\1ay 2S JOe)) III if.) , f" I ~: ,I 'i 11 !I Ii J iJ I, i I !fh !_~,-- , I-I ir-, Dcar ('Jll/ ('Cl\JJlCil \h.'li'il~i...'i~ and ~vLiYC)r ! c'urrcntly h;1\;( l1H~ jJ!1\i!qj_C \)fservmg as;j Incill\!l'I of" I Ill' Ashland J--IIslonc C'JlnnlISSJoJ) A:; ;J]) ;IJdlilCOJOgJSl rny pnJll,1JV )nll'1cSl~, 1)) Ashland's hlslory relalc In ;'Hchatologjc;:J! iCSO\JTCCS r;ilhu lhMllhc archllcclIH;i! SlytcS ofhJS10TlC buJidmgs During llJY tillle on thc COllJ)])ISSIOfl ] 'vc learned a great deol abou! ^shJand's JlJchJtectural hiSl0I); frOln lhe desigJ)CiS and 3JchJleC1S who serve onlhe commission J've observed and somelllne:; P;1111Clp;lIC.d In llumcrous disclJSS10nS lllvolvlllg desIgn detaIls, mass and scale clnd conlc\l\Jal lS.c;UCS as they rdale to V()fIDUS proposed prOjeclS ill Ashland In general, Iltesc dlSCllSSJoJls ,lle cXlJemely hdphiJ In Ihc Indlvlclu<lls appearing be!()rc tbe cnnJllllSSJOn Thc v,JillC ollhesc dISCllSSIOJj) JS c111e PflJl1,lJ Jiy to the inSight and ~uggcsllons urlhe desJ,un prufesslonals who me on the cornrnJSSlon These lIldivlduals IOUIJncJy ,:iJld lllCI IcujotJsly avoId conn leIs of lnlCIl'st by rccuslI1g themselves if they 3fC persoJlally Involved Hi a prolect !'m concerned thill the flC\lv' u[tl!nance \vdllec.!(} leI the resIgnatIons ufthe very COlTllTlISSIOn members who arc most qllalifledto diSCUSS Issues blought before the eOffllllJssioJl FOI Ihls rcason I urge you to rcmove the sentence 111 Section E'11hat conlains the phl"SC" 01 "ny action OJ proceeclmg befoJc anolhel board, commiSSion OJ City Couned hlJlurc to change th,s scgrnenl ollhe ordinance wdl have the uJlJnlended cOIIscquence 01 substantially weakefllng I he abilily of the histonc commiSSion 10 funel lOti eJTcctrvely Thank YOlI fo! your cOIIsidcration Tnc1;, cly I,J aul) V .~/7 L~ - ----~_.- il!i)!: (f- I! 11'( I: 1]1 !!p', Ii iilii JUN 0] IOO! [i! , 'I ii'lfcy~.v!~_ E~f1~I_J l~OO WIND\OR \111[[- A\tH ^NO, OR 9}'-,,0 Tf I J~ I )'J) 10J9 lAX )~1 )'){ 101>4 ,. June 1, 20Dl City Counc[lors and Mayor City of Ashland, OR Honorable Councilors amI Mayor, I am writing this letter to express my concern over the Proposed City E th[c~ Oldinance, particularly Section E it of the proposed ordinance My understanding is that this section w[11 prohibit members or offiCials of a commission or board trom representing clients before any Crty board, commission or the City Council If the matter In question is to corne before the board or commiSSion to which the member or offiCial IS appointed Having been a member of the Ashland Histonc CommiSSion and being a practicinq architect In the Crty of Ashland, It is my opinion that this provision represents an unnecessary limitation on the ability of professionals to serve In a voluntilry capacity In the interest of the City and It~ citizens. I can understand and aqree With provisions which would require a board or commiSSion member to recuse himself or herself from hearrng matters pertaining to a client before the board or commission on which such board or commission member sits, but to prohibit the member from reprl~senting a client before any commission, board or the City council on the l)rounds that the mailer in question may eventually come before the particular body on which the member sits seems unwarranted In my opinion, this measure will discourage capable profeSSionals within the City from volunteering for pOSitions on boards and commissions that are important to the communitYuposltions which are difficult enough to fill with qualified and knowledgeable citizens. I don't see a benefit to the City in this provision but I do see a limitation on the effective operation of the City's vital boards and commissions. Sincerely, Allen Crutcher 1 Fobert S"bdoff, ;\rclulfcr J~O Church SI1Cel ;\shLHld, (lR ')1',20 ',/II-:li):)\7/2 "41 48EOEW (I" IOh(iJ)s;d:l1chcom I' r, I [I ~ I L ;:! i-I,', [ I Ii, L_~ I [- ,r 'I I' i I II, IIJ[ JUN U 1 (/111 II~yo~ V_~ v" 1- Mall 1\4:IV\ I )001 / , '\ll'CIIIl'd (011111 dOls :llld ;\1 "Y11I , I 11'1 cnl]y JTSI/',Iled my poslI]()n as 11 1lll'll1hcr of 1IlC Ashland H,Slo11( (onunlssloll, :dtn snvll1/', two ICtms for a {()1:d oj Sl); years. ]1 WI1S vcry ICWIJHhll.l'" :llld I bclicve we provJdcd :1 ,I',rC:lI SCJVJCC 10 Ihe U)JJ111l11J1Jly DUJln/', 1h:ll IUIIC, I W:lS Ullllhlc 10 present my ']1CIlI's jHO)e(l hefolc Ihe ] JJSIOrlC COlJ)mJSSli)n hll 1IIosc pl())CI IS, eJlhcl illY ,JJ('lIl 01 Ihe COnln]l,{()r presellled Ihe JHOJCCI bef()fc Ihe I bSlillll (:omllllSslon. They oflcn leh UlIPII-'p:JIed :1I1d ullcomfortable dOlJ1!', so, bill I "1),1 c(' Ihele IS conflict of JnleH'SI fDr Ihe ocher COlllJJlISSIOners and myseJf m IhoSl' 1 :1Ses WIIS :Jhlc, IHJWCVl'J, 10 lcprcsenl my chent bclDre Ihe OtJlCI COmnlJSSIOnS 1 WIIS deeply lhsllppOIlJICd 10 Icad III Ihe l\shLind DaIly Tldmgs Ih'll ''emll'' 11 IIH'mlwIS vOlcd 10 g'V(' I1UI1111 "pprovaJ fOl eXleiJ(llJ1g clh,cs rules thai "pply To p:ud employee:;" 10 ll]('mselvcs, :1IJd the many vo]unlcers who serve on cHy (OnllJIISSIOns, eOmmJ1ICCS Illld bOllrds " I\s II former mcmber of onc of Our elly's COmll!!s:,rO))s, :wi! 115 SOU"'OIW who wou]d Id,e (() serve the commumly JlJ Ihe fumre In auother appolJl1n] posmoll, ) would strongly urge you 10 [('consIder JfIclusl()n or prO!)()s('l I l1Jllll:1I10nS 10 "volulltecrs" III clus new nhlcs ru1c ] refer speuficalJy ,IS II JllJlllS vo]unleers JIl seelJOJl F IJ whICh reads, ".Dr any ,,(\Jon of procecdmg bciDrc ILl10lhcr bo:",1 cnnlmlSSlOIl or CJ!v CoullCll " ) ... ) j bchevc th:J1 If iJ](' new ethJcs rule was extcnded 10 volunteers, our elly would lose JJJaJlY of liS most highly trained, professJOnaJly cxpcnellccd, and kJ)owJedgc:lbJc uUzens who h:we volulIteered IlJen npertIsc for Ihe betterment of our COrnlTllJllJ1Y ] would, IJl fact, be unable 10 t3ke on illJt role JS J1 would lurut my abluty to do Iny Job and pursue my hvelihood on behalf of my clients. Many of the most JJlformed, eXlJl:'JJCTHf', IU"J competent volunteers currently servmg on tJlI' commIttees may also eJcudc 10 step clown, becl1Jse of the new brOlld sweepIng ethics rules ih:J1 ,ba]]o\V :J Volunleer COnlJDlSSJOner 10 tcstJfy for 3 cbcnl bclore other commJSSJOIlS As a sole propnetor, there JS no other person Hl my Dfflle 10 Lll,c on dlJt role. I 11 ;JddHIOO, my readIng of the new rules wouJd IlJDlI others WI1h fwancla] Interest In the prOlect (u' panners, CJnployees, ele) from represenling ebellts of Ihat orgaJlJzatJon. These new ruJes alC [ar 100 sweepJllg fOl a smJJJ town like l\shJanu, and the ruJes may actually cre'lle a bIas agalfJSI small busJJ1csses and owners who JJso have an JJ1ICreSI In servmg l' \ II; I-L~ Ii: 1'\1 III I iJ A MEMO '1 ')1 i iJ.l JUN (14 iDOl E MAil t)'S-r HI~l\}lION , 'D I I ii,y",V0c..}';'~?) '_ JHc) 1\-'( " I " ., , " , f(".(' ('JC( , " ~ ) ( 1 , , (>n - 1;'1 I ,1 I' ' '~ u ':(.1 1 , '-I (.'0' '.:f:'H,!' " .'cnl; Jl ; crT1 " , " - t\.<,hkJfV-!, C> 'T (; ,Ii >, ,.. L).< , . ~ ,'\ ~~, j IH , 1);111' . ('/",')()(J 'I'll \1:1\'1'1 lohn J\Jo!/J~()n l'\: ;\1rITlhlr~ (If Ihf elf)' (()IIJ)( Ii Hl' PJ()I)()~t'(1 fdllcs Pfl)VISIOIlS, AI\1C J_08.020 ] )1';lT \11 i\'I;lYI1r :lr1d ,\Jcrnben Ullhf ( OllJ)( d. ;1IJl wllllng 10 VOlCt' somf (()f)(CJrJ ()vn lllf l)JoP()~cd I('VJ:-'I(}IL~ 10 lhr /\shhnd MlJf1J( !p:d (11dc !(',I;;lJdln,p J 111)(:1] \l;111d;;,d:-, fm en)' cmploYff), :lpplllJ1t('d ;lnd flu tfd ollJ( l;li~ ObvlOusly, on !1~ l;l( C, IIH' JJ11flll 111 Ihi (IJdHLIIH (' I' bud:.hJc and bfllel dcfJJ11:':, Ihf pnl('JlI1:1J J:''-,IJ{':, Ih;lt (:JlJ <Ir]~e flom lndJVld\J3b who ;lPPIO\'<' Ihe P!)vlll'f~(' ()f ('IYlpIOVIlJellt 01 ;lpp01IltJlH-'J}1 Inl P("ol1:d g3ln TI]~l ~;l1l1, I kllOW thai many of Ih(, CJl)"~ vol1ll1len (OrnHll:,S]OIlS tely upon plolt'ssloJJ3b]/1 dH~ fwld fn! '-,('!V)(( I J]~n hnow thaT fUldmg (l\J;lbfJeJ Jl1d]v](Juah, wllh lhe wdbngncss TO servc <lS well;:l:-, _"orne 1);J( hgJ()llIld!n 11](' :,](';) 111 d_l.~(\1:-~lon (;In be (h<lllengHlg 11 no! unp():'~JbJ(' Thrs lS P:J"](llbdy U1Je of the JJJSll)fJ( C()JJH)J'~~!()JJ, W)I\:IC kJ)()wkd,I~( ,)1 bUJJdlllg, ih~]gT1 JrJd ~,{,;:I ~ll(hJle( tUff' (1)1' :.1] (IlIlO) 101 thJI body 10 ;:JSS!~l Ihe :)1:lIIIIJ 11'-VJ{'\~'1J1!', ;lpplJ(;lI]Oll" 1 know lh~t rl1 Yf;lJS 1);1'-,1 drl' :)1;11(> BO;lJti 01 ]"_111)( '-, ;l(luaJly lI~{'d hlstOJJ{ \.Ol/HJJ)'-,'-,Il11J JJ)flll\)( 1'-, :l~ :1)1 ('.\:llnplc OJ WhH b '''ll1;lJJe! Town" h;OI\'(' In b;d:HH (' g;l]JllJJg C'i p('f (J'-,(' \V1th thr occJsmf);:J! COI1f1H 1 of IlJlClnl en 1:l!J1JV whell :1 (nrnrIlJ~~!{)n !/lembn h;):, '-,u(h ;l (onllH I, Ibey rllll,,1 In j]"(' IhelTlsc!vfS, It'3v(' lhr 100111 ,11)11 ;n I :H (())dlllgh \1IJll :.Ill) hlJpdllJ th:Jt youWllJ nOllnlnpJ('1 d1Je.. ()J(Lnan(f to prnJudr people \V1lh dJJetl tJ;lllllllg 1lI (-':'ijWl]CJl((' Jr1 11]( ll1l1JIl1l1E JJelJ from servUJg on Iht' ,\~hhnd Hlc.10n( ((1!nnlJ~::'lon ,\~ 111 ;l~lde, J/1 )'nJS p:-lSl thl:' ) Il:,IO!)( CommISSIon, CP/\C, lhf Tll:'(> COrnrllJSSH1Jl ;:Ioel even TIJffJl ::'-,dcrr \\1('/(' ~('t'J) ,1" '11 aJfllng grounds' 101 :>pp01f1lrTH'I1IS 10 (he Pbnnlng C:omrllJSsJOll, :JSSUJlllg lh;ll n]('mhn~ of 1I1:JI hod V )I:ld Iml1b:llH\' \\:1lh bOlh pllblJC jJrocns MJ(J lhe /bhbnd LDO \Ve seem 10 h:'lVt:' moved aW;lY flollllhJ! polH)' wllh ;.evcral (Ullt'f11 Pbnmog (omrnJs;.,I(HJne.. ;lPpOllllfd \V](h Lll]e 01 no l);:J(kgJOllJld 111 pbnll1ng OJ lJJ puhlJ( pJCHt',";., ] do /lot bebrve dus h3s bun;l ~U({nsllJl S1r:Jlrgy, (:Jllslne :Jddwonal delay In lhe IrV1CW jJHH n<.. IJllIC:J,,,{'d bUlden 101 staff, :Jotl confuslOn fOI JppJ)(3nlS Sll1ngrnt loteT}Het<lljon of t.hJs plOposrd bngu:Jgf, p:1I!Huh,ly Sf( !Jon E(<l) offers the pOSSJblJJf)' 01 [olcn qualIfIed Jpp1C<lnls 10 <Ill voJunterr uOJrds 10 Intgn due to;l Jl{'('d to \YOlk, rflllovll1g Ihfu knowledge hOJJJ Ihe PIO(C,~ Th:J! 1.5n' <l lIade-off wOllh ronsHlcllng ] hnpe vou \\flU c1C3rly npln:, Ih;}l such IS not the expeCl;lIJOn or rf()\11Jtrnr/1t 0/ trus amrndment pnOI (0 11c.. ;}dOpllOn Thdllh )'0\1 fOI <llleDUOn 10 lhJs rTIanfr ] legIe! ] \\1111 he un<lbJe to attend the hraI1Jlg ne;.;1 TUf',chy b111 would !Jkc IhJS enlt'Ifd 10 The Iecord on IhlS propmeJ amendmrnt SIlJ(eleJy, I __ -;.-l, /_-~.---r \.. \ ,rj C:::~=--\i~J f-,-- ---.LJ Ceolgc ]-Game], ]\'1 S 'Cr~ -rr- f~-!r!l- I,~T i nr I rl~IIIN Ubi ! !IIII Proposed City Ethics Ordinance II I I Testimony for City Council Mtg June S, 200711J .. .._______1 My name is Dale Shostrom, and I live at 1240 Tolman Creek Fld Ashland I am presently the chairman of the Historic Commission which I have served on tor the last 10 years By Profession, I have been a Designer-Builder in Ashland since 1974 : arn here again 10 express sOrTIe concerns I have with the proposed changes to the City Ethics Ordinance Previously, I gave testimony on this subject beiore the City Council on March 20 I then watched the Council meeting of May 15, on RVTV and to my surprise with little debate, the Council passed the first reading of the Ethics Ordinance as proposed Tonight I am asking the Council to rer:onsider your decision because I foresee serious repercussions that include discrimination, arbitrary applications, and unintended consequences if passed as is I he area of quesllon is Sec E - CONFLICT OF INTEREST, Pan 4 REPRESENTING PRIVATE AGENCIES BEFORE CITY AGENCIES OR COURTS - The last sentence reads "No appointed of1icial shall represent d client for hire before the Board or Commission to which thelt official IS appointed, or in any action of proceedings before another Board, Commission or the City Council on a matter which came or will come before the Board or Commission to which that ojjicial is appointed" My concern is with the second part, which reads "No appointed ojjicial shall represent a client for hire in any action of proceedings before another Board, Commission, or City Council on matters which came or will corne before the Board or Commission to which that Official is appointed" This portion of the ordinance is too restrictive - it takes conflict of interest too far. This last sentence should be struck from the ordinance for the following reasons 1. As proposed, it would prohibit Architects, Planners, L<mdscape Architects, building and landscape contractors, archeologists, or arborists from presenting their expertise for hire before City proceedings If they serve the City and the Public as members of a Commission The greatest p01ential negative impacts of this provision, would be the loss of the ---------_.---- 1~1~ll~ [rJ [t [I :V/ I:, :,!"III, 'I!' II JUN 06 )[JUI Oy QVI'iV,1A L~~,( June rih 2(0) I\.shland C,ly Councll, I was hop,ng to speak to the Counell last lIlght ou Ihe amendnll'lIl to the FlhICS O)(lln/mce, hut do to tlIne const"lJJ1ts the Councd Ian out of tlIlle and Iltele was some \mCelliunly as to when It would he back ou your docket Nevertheless, J w/lnled to expless my thoughts wltlt you Snit" I lef1 my position WIth the Ash]and )']/uIllIn!' Ikp/\Jtll1ent I've always hoped 10 Ietuln to Clvd serVIce m at leasl the 10m] of a yoluntecl pOSItIon Oil ()Jl(' 01 lite m/my ('Ity Con\Jnlssltms OJ Boards th/lt Itelp gwde Ashland's fut()Il' ThIS IS my COlnllI()n,'y IhIS IS my chddren's communlly' ] owe It to thelll 10/ 1101 only tlte benel"ls of lelaJJ1mg i\shlllnd's JTlany allnbotes, hUI 10 also reveal Ihe IllJportanee of partlClp/ltlng In CIVIC Id [;ms SUJpnsmgly; ]'ve never had rnuch Interesl wilh il PLullling COTllllllSS1\)])l'J'S OJ ell)' Couned()J's position (after watching lasl mght's V/I h()ur CouncdllJectmg I remembered why), but Instead have graVitated lowards the Ih()ught ()f the TraffiC SlIfety ('()llJlllISSIOn, II,stone CommISSion or Schoo] Board l've als() enterllllned the Idea ()I v()]unteenng on tJne ()f Ihe many /lppomled cornmillces such as Ihe recently formcd Ashland StIeet /]-5 OvelJIIlSS ConlJlJJltee or the Mount Ashland Overslghl Comnllltee Unforlunate]y, thIS thought no 'longer appears 10 be pOSSIble based upon IIJ) Innendlllcnl to the ex ISlmg Elhles Ordlll/lJl(cc, specdiea]]y, Chapter 308020 E.4 whIch leads 3 08020 E 1 EfJJrcsentlngl'I/V(lIe Inleresls l!ejore Clly Ag<"/1(l('s or ('O/irlS No emp/oyf'P l-vhose solory is poid In whole or In porI by the e,lv sholl oppcor Tn behalf of pnVOlf? inrereSls he fore any agency ofl/h> ('lfy An employeI' sholl not r epn-"s en I prIvate inleresls In any ac110n or proceerhng ogOll1S1 ,he lnfeu'SlS of ,he Cuy In ony /ulga1l0n 10 which Ihe CIty is (J {Jorty unless {he employef' IS {eprespnflng 11lmself/herself as (] privote ntizcn on purely personal /msmess No appOInted officiol shall represent a chen' lor lure be/ore the huord or comnllssion 10 which {hot official IS oppoinlPrl or Tn ony oClion (~/pr(}ceeding !J(1ore another board commiSSIOn or Ihe Cily Councrl on a moiler winch came or Will come before Ihe board or comln/SSlOn 10 which Ihol offiClolls Ilppoll1led, Overall, ] support all of the proposed changes to Chapter 308,020, but for il portIon of the lasl sentence of sectIon E.4. (.. or in any action of proceeding before another board commission or the City Council on a mailer which came or will come before Ihe board or commission to which that official is appointed,), To me tillS portIon is not rational and unfair to cerlain profession/lls who wanl to par1iClpate ITl thell own comlllunity's affalls, How can it reasonably he expecled to ohtam "qualified" professionals such as an ArchitecI to participate on the )']annmg CommIssIon when he/she could never present their findmgs to "another" board commiSSIOn or the City CouncIl such as the H,storic Commission, Tree Commission, Traffic Safety 01 CIty CounCIl The same thmg applies to a Cer1ified Arhorist or TransportatIon Engineer who we as a commlmity should desire to sit on the Tree CommIssion 01 TraffIC j he ;JddJl10J)<1] \VOrcllllg 10 j OS ())O I ,I lTlay sound good Oil Ihe surface, hlJl II \ 1101 ]1.<.; ~1 lllilJOJ IlJ1Slakc \\11111 J(,pl'r(US~JUIL() lh;)! Ja\l JOO'\ of yeiHS \Vhal \\1(' need 1\ 1l10lC ( OJll1rJ1SSJOner 11,llI1JJlp', ll(JI C]IJlll)Jill]Oll of the InO.<:'l q\J;IIJfIC(j Tllank you dg:1J!l IUJ your ClV1( conlnblllJOJJ ;"!rJ(! hopefully lhc iTJ(lJOfJly 01 yon a~l,Jec lhal l}ll\ ClddJIJOJL1J wOl,iJng needs 10 he IhOlOllgh]y ;I11;ilyzcd anil )luhhcly illscLlssed pllOI 10 fmill ;ldopl]()n SILlt cll:ly \1:IIK Kllm nl, W Ncv;llb Slll'el el,S? 1111 I) ({j kin ,)1.--1 k;'cfcr- "T>^' ,,4/ ORS 244.040(6) No person shall attempt to represent or represent a client for a fee before the governrng body of a public bOdy of which the person is a member. This subsection does not apply to the person's employer, business partner or other associate. Current text: No appointed official shall represent a client for hire belore the board or commission to which that official is appointed or in any action or proceeding before another board, commission or the City Council on a matter which came or will come before the board or commission to which that olflcial is appointed. Better text: No appointed official shall represent a client for a fee belore the board or commission to which that official is appointed or in any action or proceeding before another board, commission or the City Council on a matter which came or will come before the board or commission to which that official is appointed, Add only prohibition on pro bono No appointed official shall represent a client pro bono or represent a client for a fee before the board or commission to which that official is appointed or in any action or proceeding before another board, commission or the City Council on a matter which came or will come before the board or commission to which that official is appointE,d, Add only prohibition adding elected officials (Parks C) No elected or appointed official shall represent a client lor hire before the board or commission to which that official is elected or appointed or in any action or proceeding before another board, commission or the City Council on a matter which came or will come before the board or commission to which that official is elected or appointed. Add elected and prohibition on pro bono (Parks C) No elected or appointed official shall represent a client pro bono or represent a client for a fee before the board or commission to which that official is elected or appointed or in any action or proceeding before another board, commission or the City Council on a matter which came or will come before the board or commission to which that official is elected or appointed. Add elected and prohibition on pro bono (Parks C & Council) No ejected or appointed official shall represent a client pro bono or represent a client for a fee before the council, board or commission to which that official is elected or appointed or in any action or proceeding before another board, commission or the City Council on a matter which came or will come before the council, board or commission to which that official is elected or appointed. NEW DOCUMENTS ADDED FOR THE 9/18/07 CITY COUNCIL MEETING . I Printedfrom the League of Oregon Cities 2007 Legislative Summary pages 71 -72. Thefull summary is available online at lvww,orcities,org Ethics OVERVIEW Even before media revelations that several legislators failed to report a trip to Maui paid for by lobbyists, ethics reform was destined to receive significant attention in the 2007 legislative session. In 2005, the session was marked by a scandal that resulted in the resignation and criminal conviction of former Representative Dan Doyle, also the former co-chair of the Joint Ways and Means Committee. In a move to shine a tarnished image, the Legislature instructed the Oregon Law Commission to conduct a comprehensive study of Oregon's ethics laws and recommend reforms. The Oregon Law Commission introduced a package of bills dealing with gift reporting, travel restrictions, nepotism, personal bias, and conflicts of interest. Additionally, legislators came forward with bills that: . Set monetary limits on gifts; . Provided an independent funding source for the Government Standards and Practices Commission; and . Changed the name of the Government Standards and Practices Commission back to its original name, the "Ethics Commission." These bills were lobbied from the first day of session until the last day. Eventually, many elements of the approximately dozen ethics bills were condensed into two: SB 10 and HB 2595. ETHICS - PASSED BILLS SB 10: Ethics Reform Effective Date: July 3,2007 Chapter 877 SB 10 establishes a new funding system for the Government Standards and Practices Commission (GSPC), based on assessments to state agencies and local governments, local service districts and special government bodies. The commission shall determine what percentage of the projected budget expenses for the biennium should be borne by public bodies in state government, and local governments, local service districts, and special government bodies that are subject to the Municipal Audit Law. The state's portion will be paid as follows: a rate shall be established for all public bodies in state government, and a charge will be established based on the proportional number of each agency's public officials, compared to the total number of state public officials. The local government's portion will be paid as follows: a charge shall be established based on the same proportional expense that the local government is charged for the municipal audit ~ee under ORS 297.485, compared to the total amount assessed for the municipal audit fee. This assessment will be due annually when local governments file their audits with the Secretary of State. S8 10 makes a series of changes to Oregon's ethics laws: . Increases the maximum fine for an ethics violation from $1,000 to $5,000; . Requires public officials to file quarterly statements listing sources of income greater than $1,000 and gifts or honoraria received by persons with a legislative interest germane to the public official; 1 . Requires the GSPC to provide training on the new reporting requirements; . Requires the GSPC to establish an electronic reporting system that will allow reports to be made available to the public; . Allows a public official to establish a legal defense fund and solicit contributions; and . Changes the name of the GSPC to the "Ethics Commission." SB 10 also establishes an aggregate annual gift limit of $50 that a public official may accept from any person with an administrative or legislative interest before the official. The bill was intended to limit gifts to public officials that were not necessary for the function of their office anel exempts the following from the gift limit: . Travel expenses on trade promotion or economic development missions; . Travel expenses, foods and gifts given as part of cultural exchange, such as a "sister city" visit; . Food and beverage consumed at an event where the public official is to perform an official function, such as speak or present an award; . Admittance to a sporting or entertainment event where the public official is performing a ceremonial function; . Travel expenses associated with a contract negotiation or fact-finding mission; and . Gifts from relatives. SB 10 contained an emergency clause and went into effect immediately after it was signed by the governor; however, the local government funding mechanism does not take effect until the 2009- 2011 biennium and gifts limits take effect January 1,2009. HB 2595: Reform in Ethics Commission Process Effective Date: July 31, 2007 Chapter 865 HB 2595 allows local governments and statewide associations oflocal governments to write their own ethics policies and submit them to the Ethics Commission (formerly the Government Standards and Practices Commission) for approval. A public official could not be sanctioned by the Ethics Commission or a court if they were acting in compliance with their locally drafted and approved ethics policies. Other provisions ofthe bill: . Sets a 60-day time line for the Ethics Commission to respond to a request for an advisory opinion; allows 30 days for a staff opinion; . Holds harmless a public official that acts in accordance with an Ethics CommissIOn advisory opinion; . Extends the amount of time the Ethics Commission may take to conduct a preliminary case review from 90 days to 135 days; . Extends the maximum time allowed for an investigation from 120 days to 180 days; . Removes the "opt-out" provision from statute that allows a public official accused of wrong doing to transfer their case to circuit court; and . Bars public officials from hiring, firing or supervising a relative or household member. The League was successful in removing a provision of the bill that would have rendered a decision by a public body invalid if a public official involved in the decision acted "improperly." Such a provision would have had a damaging effect on local govemment bond ratings. 2 74th OREGON LEGISLATIVE ASSEMBLY--2007 R€gular Session Enrolled House Bill 2595 Sponsored by COMMITTEE ON ELECTIONS, ETHICS AND RULES (at the request of Oregon Law Commission) CHAPTER AN ACT Relating to government ethics; creating new provisions; amending ORS 162.005, 171.745, 171.750, 171.772, 171.778, 244.010, 244.020, 244.050, 244.055, 244.090, 244.100, 244.110, 244.115, 244.130, 244.160, 244.195, 244.250, 244.260, 244.270, 244.280, 244.290, 244.300, 244.310, 244.320, 244.340, 244.345, 244.350, 244.360, 244.370, 244.380, 244.390, 244.400, 293.708 and 469.810; repealing ORS 244.030, 244.080, 244.180, 244.190 and 244.201; and declaring an emergency. Be It Enacted by the People of the State of Oregon: COMMISSION STRUCTURE SECTION L ORS 244.250 is amended to read: 244.250. 0) The Oregon Government [Standards and Practices] Ethics Commission is estab- lished, consisting of seven members. The appointment of a member of the commission is subject to confirmation by the Senate in the manner provided in ORS 171.562 and 171.565. Members shall be appointed in the following manner [to be confirmed by the Senate]: (a) [Four members appointed by J The Governor shall appoint four members from among per- sons recommended, one each by the leadership of the Democratic and Republican parties i.n each house of the Legislative Assembly. If a person recommended by the leadership of the Democratic or Republican party is not approved by the Governor, the leadership shall recommend another person [shall be recommended]. (b) [Three members appointed by] The Governor shall appoint three members without leader- ship recommendati.onl.]. No more than two [of whom shall be from] members appointed und.er this paragraph may be members of the same major political party. (2) [No] A person who holds any public office listed in ORS 244.050 (1) except as a member of the commission [shallJ may not be appointed to the commission. No more than four members [shall] may be members of the same political party. (3) The term of office of a member is four years. [No] A member [shall be] is not eligible to be appointed to more than one full term but may serve out an unexpired term. [However, those members first appointed to the commission serving less than a three-year term are eligible for a second appointment for a full term.] Vacancies shall be filled by the appointing authority for the unexpired term. (4) The commission shall elect a chairperson and vice chairperson for such terms and duties as the commission may require. Enrolled House Bill 2595 (HB 2595-B) Page 1 (5) A quorum consists of four members but [no} a final decision may not be made without an affirmative vote of lthe] a majority of the members appointed to the commission. (6) Members shall be entitled to compensation and expenses as provided in ORS 292.495. (7) The commission may retain or appoint qualified legal counsel who [shall] must be a member of the Oregon State Bar and who [shall be] is responsible to the commission. The appointment of legal counsel under this subsection [shall] may be made only when the commission finds it is inap- propriate and contrary to the public interest for the office of the Attorney General to represent concurrently more than one public official or agency in any matter before the commission because [such] the representation: (a) Would create or tend to create a conflict of interest; and (b) Is not subject to ORS 180.230 or 180.235. (8) The Attorney General [shall] may not represent before the commission any state public of- ficial who is the subject of any complaint or action of the commission at the commission's own in- stigation. CONSIDERATION OF OTHER SANCTIONS SECTION 2. ORS 244.390 is amended to read: 244.390. (1) [The penalties and sanctions imposed by this chapter are] A penalty or sanction imposed issued by the Oregon Government Ethics Commission or a court under this chapter is in addition to and not in lieu of any other penalty or sanction [prescribed or authorized by law which applies to the conduct of public officials] that may be imposed according to law. (2) Before making a finding that there is cause to undertake an investigation undt~r ORS 244.260 and before imposing a civil penalty under ORS 244.350 or 244.360, the commis!;ion or a court shall consider the public interest and any other penalty or sanction that has been or may be imposed on the public official as a result of the same conduct that is the subject of action by the commission or court under ORS 244.260. (3) Nothing in this chapter is intended to affect: (a) Any statute requiring disclosure of economic interest by any public official or candi- date for public office. (b) Any statute prohibiting or authorizing specific conduct on the part of any public of- ficial or candidate for public office. RULE MAKING SECTION 3. ORS 244.290 is amended to read: 244.290. (1) The Oregon Government [Standards and Practices] Ethics Commission shall' [(1)] (a) Prescribe forms for statements required by this chapter and provide the forms to per- sons required to file the statements under this chapter or pursuant to a resolution adopted [pur- suant thereto] under ORS 244.160. [(2) Prepare, publish and provide a manual setting forth recommended uniform methods of report- ing for use by persons filing statements under this chapter or resolution adopted pursuant thereto.] [(3)] (b) Develop a filing, coding and cross-indexing system consistent with the purposes of this chapter. [(4)] (c) Prepare and publish [suchl reports las] the commission finds are necessary. (d) Make advisory opinions issued by the commission or the executive director of the commission available to the public at no charge on the Internet. (e) Accept and file any infonnation voluntarily supplied that exceeds the requir,ements of this chapter. (f) Make statements and other infonnation filed with the commission available for public inspection and copying during regular office hours, and make copying facilities available at a charge not to exceed actual cost. Enrolled House Bill 2595 (HB 2595-B) Page 2 [(S)} (2) The commission shall adopt rules necessary to carry out its duties under ORB 171.725 to 171.785 and 171.992 and this chapter, including rules to: (a) Create a procedure under which items before the commission may be treated under a consent calendar and voted on as a single item; (b) Exempt a public official who is otherwise required to file a statement pursuant to ORB 244.050 from filing the statement if the regularity, number and frequency of the meetings and actions of the body over which the public official has jurisdiction are so few or infrequent as not to warrant the public disclosure; (c) Establish an administrative process whereby a person subpoenaed by the commission may obtain a protective order; [andJ (d) List criteria and establish a process for the commission to use prosecutorial discretion to decide whether to proceed with an inquiry or investigation; (e) Establish a procedure under which the commission shall conduct accuracy audits of a sample of reports or statements filed with the commission under this chapter or ORS 171.725 to 171.785; (f) Specify when a continuing violation is considered a single violation or a separate and distinct violation for each day the violation occurs; and (g) Set criteria for determining the amount of civil penalties that the commission may impose. (3) The commission may adopt rules that: (a) Limit the minimum size of, or otherwise establish criteria for or identify, the smaller classes that qualify under the class exception from the definition of "potential connict of interest" under ORS 244.020; (b) Require the disclosure and reporting of gifts or other compensation made to or re- ceived by a public official or candidate for public office; (c) Establish criteria for cases in which information relating to notices of actual or po- tential conflicts of interest shall, may not or may be provided to the commission under ORS 244.130; or (d) Allow the commission to accept the filing of a statement containing less thaIll all of the information required under ORS 244.060 and 244.070 if the public official or candidate for public office certifies on the statement that the information contained on the statement previously filed is unchanged or certifies only as to any changed materiaL (4) Not less frequently than once each calendar year, the commission shall: (a) Consider adoption of rules the commission deems necessary to implement or interpret provisions of this chapter relating to issues the commission determines are of general in- terest to public officials or candidates for public office or that are addressed by thl:! com- mission or by commission staff on a recurring basis; and (b) Review rules previously adopted by the commission to determine whether the rules have continuing applicability or whether the rules should be amended or repealed. SECTION 4. Section 5 of this 2007 Act is added to and made a part of ORS chapter 244. SECTION 5. (1) For the purpose of protecting against violations of the provisions of this chapter, a state agency, as defined in ORS 183.750, or a statewide association of public hodies, as defined in ORS 174.109, may adopt rules or policies interpreting the provisions of this chapter. The rules or policies must be consistent with the provisions of this chapter. A state agency or a statewide association of public bodies may submit rules or policies adopted under this subsection to the Oregon Government Ethics Commission for review. (2) Upon receiving rules or policies submitted under subsection (1) of this section, the commission shall review the rules and policies to determine whether the rules and policies are consistent with the provisions of this chapter. The commission, by a vote of a majority of the members of the commission, shall approve or reject the rules or policies. The com- mission shall notify the state agency or statewide association of public bodies in wri.ting of Enrolled House Bill 2595 (HB 2595-B) Page 3 the commission's approval or rejection. A written notice of rejection shall explain the rea- sons for the rejection. (3) Unless the applicable rule or policy is amended or repealed by the state agency or the statewide association of public bodies, the commission or a court may not impose a penalty under ORS 244.350 or 244.360 on a public official for any good faith action the official takes in compliance with a rule or policy that was adopted by the state agency that the official serves, or by a statewide association of which the public body that the official servles is a member, and approved by the commission under subsection (2) of this section. SECTION 6. ORS 244.100 is amended to read: 244.100. [(1) The Oregon Government Standards and Practices Commission by rule may require the disclosure and reporting of gifts or other compensation made to or received by a public official or candidate for elective office.] [(2) The commission by rule may exempt from the gift limitation contained in ORS 244.040, any gift of food or beverage but may require that when gifts of food or beverage exceed a dollar amount fixed by the commission, the source thereof shall be disclosed on a form prescribed by the commission. J [(3)] In addition to any disclosures or reports required under [subsections (1) and (2) of this sec- tionJ this chapter or rules adopted under ORB 244.290, any person or organization that provides a public official with food, lodging or travel expenses exceeding [$50J $100, as described in ORS 244.060 (6), shall notify the public official in writing of the amount of the expense. The notice shall be sent to the public official within 10 days from the date [such] the expenses are incurred. SECTION 7. ORS 244.110 is amended to read: 244.110. (1) [Any] Each statement of economic interest required to be filed [by] und~~r ORS 244.050, 244.060. 244.070. [244.080.1 244.090 or 244.100, or by rule under ORS 244.290, an,d each trading statement required to be filed under ORB 244.055 shall be signed and certified lEtS true by the person required to file it and shall contain [or be verified by J a written declaration that [it] the statement is made under the penalties of false swearing. [Such declaration shall be in lieu of any oath otherwise required. j (2) [No person shall willfully make and subscribe any return statement or other document which contains or is verified by a written declaration that it is made under penalties for false swearing, which the person does not believe to be true and correct to every matter] A person may not sign and certify a statement under subsection (1) of this section if the person knows that the sta1tement contains information that is false. (3) Violation of subsection (2) of this section is punishable as false swearing under ORS 162.075. SECTION 8. ORS 244.020 is amended to read: 244.020. As used in this chapter, unless the context requires otherwise: (1) "Actual conflict of interest" means any action or any decision or recommendation by a per- son acting in a capacity as a public official, the effect of which would be to the private pe{:uniary benefit or detriment of the person or the person's relative or any business with which the person or a relative of the person is associated unless the pecuniary benefit or detriment arises out of circumstances described in subsection (14) of this section. (2) "Business" means any corporation, partnership, proprietorship, firm, enterprise, franchise, association, organization, self-employed individual and any other legal entity operated for economic gain but excluding any income-producing not-for-profit corporation that is tax exempt under section 501(c) of the Internal Revenue Code with which a public official or a relative of the public official is associated only as a member or board director or in a nonremunerative capacity. (3) "Business with which the person is associated" means: (a) Any private business or closely held corporation of which the person or the person's relative is a director, officer, owner or employee, or agent or any private business or closely held corpo- ration in which the person or the person's relative owns or has owned stock, another form of equity Enrolled House Bill 2595 (HB 2595.B) Page 4 interest, stock options or debt instruments worth $1,000 or more at any point in the preceding cal- endar year; (b) Any publicly held corporation in which the person owned $100,000 or more in stock or another form of equity ments at any point in the preceding calendar year; (c) Any publicly held corporation of which the person or the person's relative is a director or officer; or (d) For public officials required to file a statement of economic interest under ORS 244.0150, any business from which 50 percent or more of the total annual income of the person and members of the person's household is derived during the current calendar year. (4) "Commission" means the Oregon Government lStandards and Practices] Ethics Commission. (5) "Development commission" means any entity which has the authority to purchase, develop, improve or lease land or the authority to operate or direct the use of land. This authority must be more than ministerial. (6) "Expenditure" has the meaning given that term in ORB 260.005. (7) "Gift" means something of economic value given to a public official or the public official's relative without valuable consideration of equivalent value, including the full or partial forgiiveness of indebtedness, which is not extended to others who are not public officials or the relatives of public officials on the same terms and conditions; and something of economic value given to a public official or the public official's relative for valuable consideration less than that required from others who are not public officials. However, "gift" does not mean: (a) Campaign contributions, as described in ORB chapter 260. (b) Gifts from family members. (c) The giving or receiving of food, lodging and travel when participating in an event which bears a relationship to the public official's office and when appearing in an official capacity, subject to the reporting requirement of ORB 244.060 (6). (d) The giving or receiving of food or beverage if the food or beverage is consumed by the public official or the public official's relatives in the presence of the purchaser or provider thereof. (e) The giving or receiving of entertainment if the entertainment is experienced by the public official or the public official's relatives in the presence of the purchaser or provider thereof and the value of the entertainment does not exceed $100 per person on a single occasion and is not greater than $250 in anyone calendar year. (8) "Honoraria" means a payment or something of economic value given to a public offlcial in exchange for services upon which custom or propriety prevents the setting of a price. Servi.ces in- clude, but are not limited to, speeches or other services rendered in connection with an event at which the public official appears in an official capacity. (9) "Income" means income of any nature derived from any source, including, but not limited to, any salary, wage, advance, payment, dividend, interest, rent, honoraria, return of capital, forgiveness of indebtedness, or anything of economic value. (0) "Legislative or administrative interest" means an economic interest, distinct from that of the general public, in one or more bills, resolutions, regulations, proposals or other matters subject to the action or vote of a person acting in the capacity of a public official. (11) "Legislative official" means any member or member~elect of the Legislative Assembly, any member of an agency, board or committee that is part of the legislative branch and any staff person, assistant or employee thereof. (12) "Member of household" means any relative who resides with the public official. (13) "Planning commission" means a county planning commission created under ORB chapter 215 or a city planning commission created under ORS chapter 227. (14) "Potential conflict of interest" means any action or any decision or recommendation by a person acting in a capacity as a public official, the effect of which could be to the private pe<:uniary benefit or detriment of the person or the person's relative, or a business with which the person or or the person's relative owns interest, stock options or debt or has instru- Enrolled House Bill 2595 (HB 2595-B) Page 5 the person's relative is associated, unless the pecuniary benefit or detriment arises out of the fol~ lowing: (a) An interest or membership in a particular business, industry, occupation or other class re~ quired by law as a prerequisite to the holding by the person of the office or position. (b) Any action in the person's official capacity which would affect to the same degree a class consisting of all inhabitants of the state, or a smaller class consisting of an industry, occupation or other group including one of which or in which the person, or the person's relative or business with which the person or the person's relative is associated, is a member or is engaged. [The commission may by rule limit the minimum size of or otherwise establish criteria for or identify the smaller classes that qualify under this exception.] (c) Membership in or membership on the board of directors of a nonprofit corporation that is tax~exempt under section 501(c) of the Internal Revenue Code. (5) "Public official" means any person who, when an alleged violation of this chapter occurs, is serving the State of Oregon or any of its political subdivisions or any other public body of the state as an officer, employee, agent or otherwise, and irrespective of whether the person is com- pensated for such services. (6) "Relative" means the spouse of the public official, any children of the public official or of the public official's spouse, and brothers, sisters or parents of the public official or of the public official's spouse. (17) "Statement of economic interest" means a statement as described by ORS 244.060 to 244.080. (8) "Statewide official" means the Secretary of State or Secretary of State~elect, State Treas- urer or State Treasurer~elect, Superintendent of Public Instruction or Superintendent~elect of Public Instruction, Attorney General or Attorney General~elect and the Commissioner of the Bureau of Labor and Industries or the Commissioner~elect of the Bureau of Labor and Industries. (9) "Zoning commission" means an entity to which is delegated at least some of the discre- tionary authority of a planning commission or governing body relating to zoning and land use mat- ters. SECTION 9. ORS 244.130 is amended to read: 244.130. 0) When a public official gives notice of an actual or potential conflict of interest, the public body as defined in ORS 174.109 that the public official serves shall record the actual or potential conflict [shall be recorded] in the official records of the public body[, and]. In addition, a notice of the actual or potential conflict and how it was disposed of may in the discretion of the public body be provided to the Oregon Government [Standards and Practices] Ethics Commission within a reasonable period of time. [The commission may by rule establish criteria for cases in which such information shall, shall not, or may be provided to it.] (2) [No] A decision or action of any public official or any board or commission on which the public official serves or agency by which the public official is employed [shall] may not be voided by any court solely by reason of the failure of the public official to disclose an actual or potential conflict of interest. SECTION 10. ORS 244.195 is amended to read: 244.195. (1) [The city recorder or county clerk, respectively, shall provide to every person newly elected or appointed to any city or county office for which statements of financial interest are required under ORS 244.050 information about the requirements of ORS 244.050, 244.060, 244.070, 244.080 and 244.090J A person designated by a public body as defined in ORS 174.109 shall provide infor- mation explaining the requirements of ORB 244.050, 244.060, 244.070 and 244.090 to each newly elected or appointed public official serving the public body who is required to file a verified statement of economic interest under ORS 244.050. The information must be received by the public official either at the first meeting attended by the [new officer] public official or before the [officer] public official takes the oath of office, whichever [is] occurs first. (2) At the time of fulfilling duties under subsection (1) of this section, the [city recorder or county clerk] person designated by the public body shall provide to each [new officerJ newly eleded or Enrolled House Bill 2595 (HB 2595-B) Page 6 appointed public official serving the public body a copy of the statements and explanation pro- vided to the [city recorder or county clerk] public body under subsection (3) of this section. (3) The Oregon Government [Standards and PracticesJ Ethics Commission shall provide copies of the statements described in ORS 244.060, 244.0701, 244.080J and 244.090 and an explanation of the requirements of the law relating to the statements to each [city recorder and county clerk] public body that is served by a public official who is required to file a statement described in ORB 244.060, 244.070 or 244.090. (4) [Any person described in subsection (1) of this section] A newly elected or appointed public official serving a public body who is not informed of the filing requirements under ORS 244.050, 244.060, 244.070L 244.080] and 244.090 and provided with a copy of the statements and explanation [described in subsection (3) of] as required under this section before attending the first meeting or taking the oath of office may resign that office within 90 days thereafter or before the next date specified in ORS 244.050 for the filing of a statement, whichever is [longer] later, without filing [any statement] a verified statement of economic interest and without incuning a sanction or penalty that might otherwise be imposed for not filing. SECTION ll. ORS 244.270 is amended to read: 244.270. (1) If the Oregon Government [Standards and Practices] Ethics Commission finds that an appointed public official has violated any provision of this chapter or any rule adopted [pursuant thereto] under this chapter, the finding [shall constituteJ is prima facie evidence of unfitness where removal is authorized for cause either by law or pursuant to section 6, Article VII (Amended) of the Oregon Constitution. (2) If the commission finds that a public official has violated any provision of this chapter or any rule adopted under this chapter, the commission shall notify the public body, as de- fined in ORB 174.109, that the public official serves. The notice shall describe the violation and any action taken by the commission. The commission shall provide the notice not later than 10 business days after the date the commission takes final action against the public official. ADVISORY OPINIONS SECTION 12. ORS 244.280 is amended to read: 244.280. (1) Upon the written request of [any public official, candidate for public office or J any person, or upon its own motion, the Oregon Government [Standards and Practices] Ethics Commis- sion, under signature of the chairperson, may issue and publish written commission advisory opinions on the [requirements] application of any provision of this chapterL based on] to any proposed transaction or action or any actual or hypothetical Lcircumstances.J circumstance. A commission advisory opinion, and a decision by the commission to issue an advisory opinion on its own motion, must be approved by a majority of the members of the commission.. Legal counsel to the commission shall review a proposed commission advisory opinion before the opinion is considered by the commission. (2) Not later than 60 days after the date the commission receives the written request for a commission advisory opinion, the commission shall issue either the opinion or a written denial of the request. The written denial shall explain the reasons for the denial. Thle com- mission may ask the person requesting the advisory opinion to supply additional information the commission considers necessary to render the opinion. The commission, by vote of a majority of the members of the commission, may extend the 60-day deadline by one period not to exceed 60 days. (3) Except as provided in this subsection, unless the commission advisory opinion is re- vised or revoked, the commission or a court may not impose a penalty under ORS ~!44.350 or 244.360 on a person for any good faith action the person takes in reliance on an advisory opinion issued under this section. The commission or a court may impose a penalty under ORS 244.350 or 244.360 on the person who requested the advisory opinion if the commission Enrolled House Bill 2595 (HB 2595-B) Page 7 or court determines that the person omitted or misstated material facts in making l~he re- quest. [(2) If any public official or business with which the public official is associated is in doubt whether a proposed transaction or action constitutes a violation of this chapter, the public official or the business may request in writing a determination from the commission. If any public official is in doubt whether receipt of an honoraria is in violation of this chapter because the person paying the honoraria may be found to have a legislative or administrative interest, the public official shall request in writing a determination from the commission. The requester shall supply such information as the commission requests to enable it to issue the interpretation.] [(3) A public official or business with which a public official is associated shall not be liable under this chapter, for any action or transaction carried out in accordance with an advisory interpretation issued under subsection (2) of this section. Such an advisory interpretation shall be considered a formal opinion having precedential effect and shall be subject to review by legal counsel to the commission before the interpretation is sent to the requester.] SECTION 13. Sections 14 and 15 of this 2007 Act are added to and made a part of ORB chapter 244. SECTION 14. (1) Upon the written request of any person, the executive director of the Oregon Government Ethics Commission may issue and publish written staff adviso~/ opin- ions on the application of any provision of this chapter to any proposed transaction or action or any actual or hypothetical circumstance. (2) Not later than 30 days after the date the executive director receives the wriUen re- quest for a staff advisory opinion, the executive director shall issue either the opinion or a written denial of the request. The written denial shall explain the reasons for the deni~:ll. The executive director may ask the person requesting the advisory opinion to supply additional information the executive director considers necessary to render the opinion. The eXE~cutive director may extend the 30-day deadline by one period not to exceed 30 days. The eXE~cutive director shall clearly designate an opinion issued under this section as a staff a<<llvisory opinion. (3) Except as provided in this subsection, unless the staff advisory opinion is revised or revoked, before imposing any penalty under ORS 244.350 or 244.360, the commission or a court shall consider whether the action that may be subject to penalty was taken in reliance on a staff advisory opinion issued under this section. If a penalty may be imposed on the person who requested the opinion, the commission or court is not required to consider reli- ance on the opinion if the commission or court determines that the person omitted or mis- stated material facts in making the request. (4) At each regular meeting of the commission, the executive director shall report to the commission on all staff advisory opinions issued since the last regular meeting of the com- mission. The commission on its own motion may issue a commission advisory opinion under ORS 244.280 on the same facts or circumstances that form the basis for any staff advisory opinion. SECTION 15. (1) Upon the written or oral request of any person, the executive dilrector or other staff of the Oregon Government Ethics Commission may issue written or oral staff advice on the application of any provision of this chapter to any proposed transaction or action or any actual or hypothetical circumstance. Any written advice not designated as a staff advisory opinion under section 14 of this 2007 Act is considered staff advice issued under this section. (2) Before imposing any penalty under ORS 244.350 or 244.360, the commission or aL court may consider whether the action that may be subject to penalty was taken in reliam.ce on staff advice issued under this section. SECTION 16. ORS 244.310 is amended to read: 244.310. (1) The Oregon Government [Standards and Practices] Ethics Commission shall appoint an executive director to serve at the pleasure of the commission. Enrolled House Bill 2595 (HE 2595-B) Page 8 (2) The executive director [shall be] is responsible for the administrative operations of the commission and shall perform such other duties as may be designated or assigned to the executive director from time to time by the commission. [However,] (3) The commission [shall} may not delegate the power to [make regulations] adopt nlles or issue commission advisory opinions to the executive director. The executive director may issue staff advisory opinions as provided in section 14 of this 2007 Act. SANCTIONS SECTION 17. ORS 244.050 is amended to read: 244.050. (1) On or before April 15 of each year the following persons shall file with the Oregon Government [Standards and PracticesJ Ethics Commission a verified statement of economic i.nterest as required under this chapter: (a) The Governor, Secretary of State, State Treasurer, Attorney General, Commissioner of the Bureau of Labor and Industries, Superintendent of Public Instruction, district attorneys and mem. bers of the Legislative Assembly. (b) Any judicial officer, including justices of the peace and municipal judges, except [municipal judges in those cities where a majority of the votes cast in the subject city in the 1974 general election was in opposition to the ballot measure provided for in section 10, chapter 68, Oregon Laws 1974 (special session), and except] any pro tern judicial officer who does not otherwise serve as a judicial officer. (c) Any candidate for [an] a public office designated in paragraph (a) or (b) of this subsection. (d) The Deputy Attorney General. (e) The Legislative Administrator, the Legislative Counsel, the Legislative Fiscal Officer, the Secretary of the Senate and the Chief Clerk of the House of Representatives. (D The Chancellor and Vice Chancellors of the Oregon University System and the president and vice presidents, or their administrative equivalents, in each institution under the jurisdiction of the State Board of Higher Education. (g) The following state officers: (A) Adjutant General. (B) Director of Agriculture. (C) Manager of State Accident Insurance Fund Corporation. (D) Water Resources Director. (E) Director of Department of Environmental Quality. (F) Director of Oregon Department of Administrative Services. (G) State Fish and Wildlife Director. (H) State Forester. (1) State Geologist. (J) Director of Human Services. (K) Director of the Department of Consumer and Business Services. (L) Director of the Department of State Lands. (M) State Librarian. (N) Administrator of Oregon Liquor Control Commission. (0) Superintendent of State Police. (P) Director of the Public Employees Retirement System. (Q) Director of Department of Revenue. (R) Director of Transportation. (S) Public Utility Commissioner. (T) Director of Veterans' Affairs. (U) Executive Director of Oregon Government [Standards and Practices) Ethics Commission. (V) Director of the State Department of Energy. (W) Director and each assistant director of the Oregon State Lottery. Enrolled House Bill 2595 (HB 2595.B) Page 9 (h) Any assistant in the Governor's office other than personal secretaries and clerical personnel. (i) Every elected city or county official [except elected officials in those cities or counties where a majority of votes cast in the subject city or county in any election on the issue of filing statements of economic interest under this chapter was in opposition]. (j) Every member of a city or county planning, zoning or development commission [except such members in those cities or counties where a majority of votes cast in the subject city or county at any election on the issue of filing statements of economic interest under this chapter was in opposl:tion to the ballot measure provided for in section 10, chapter 68, Oregon Laws 1974 (special session)]. (k) The chief executive officer of a city or county who performs the duties of manager or prin- cipal administrator of the city or county [except such employees in those cities or counties where a majority of votes cast in the subject city or county in an election on the issue of filing statements of economic interest under this chapter was in opposition]. (L) Members of local government boundary commissions formed under ORS 199.410 to 199.519. (m) Every member of a governing body of a metropolitan service district and the executive of- ficer thereof. (n) Each member of the board of directors of the State Accident Insurance Fund Corporation. (0) The chief administrative officer and the financial officer of each common and union high school district, education service district and community college district. (p) Every member of the following state boards and commissions: (A) Board of Geologic and Mineral Industries. (B) Oregon Economic and Community Development Commission. (C) State Board of Education. (D) Environmental Quality Commission. (E) Fish and Wildlife Commission of the State of Oregon. (F) State Board of Forestry. (G) Oregon Government [Standards and Practices] Ethics Commission. (H) Oregon Health Policy Commission. (I) State Board of Higher Education. (J) Oregon Investment Council. (K) Land Conservation and Development Commission. (L) Oregon Liquor Control Commission. (M) Oregon Short Term Fund Board. (N) State Marine Board. (0) Mass transit district boards. (P) Energy Facility Siting Council. (Q) Board of Commissioners of the Port of Portland. (R) Employment Relations Board. (S) Public Employees Retirement Board. (T) Oregon Racing Commission. (U) Oregon Transportation Commission. (V) Wage and Hour Commission. (W) Water Resources Commission. (X) Workers' Compensation Board. (Y) Oregon Facilities Authority. (Z) Oregon State Lottery Commission. (AA) Pacific Northwest Electric Power and Conservation Planning Council. (BB) Columbia River Gorge Commission. (CC) Oregon Health and Science University Board of Directors. (q) The following officers of the State [Treasury] Treasurer: (A) Chief Deputy State Treasurer. (B) [Executive Assistant to] Chief of staff for the office of the State Treasurer. (C) Director of the Investment Division. Enrolled House Bill 2595 (HB 2595-B) Page 10 (r) Every member of the board of commissioners of a port governed by ORS 777.005 to 777.725 land] or 777.915 to 777.953. (2) By April 15 next after the date an appointment takes effect, every appointed public official on a board or commission listed in subsection 0) of this section shall file with the Oregon Gov- ernment Ethics Commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090. (3) By April 15 next after the filing deadline for the primary election, each candidate for elective public office described in subsection (1) of this section shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090. (4) Within 30 days after the filing deadline for the general election, each candidate for elective public office described in subsection (1) of this section who was not a candidate in the preceding primary election, or who was nominated for elective public office described in subsection (1) of this section at the preceding primary election by write-in votes, shall file with the commission a state- ment of economic interest as required under ORS 244.060, 244.070 and 244.090. [(5) The Legislative Assembly shall maintain a continuing review of the operation of this chapter.] [(6)] (5) Subsections (1) to [(5)] (4) of this section apply only to persons who are incumbent, elected or appointed public officials as of April 15 and to persons who are candidates for public office on April 15. [Those sections] Subsections (1) to (4) of this section also apply to persons who do not become candidates until 30 days after the filing deadline for the statewide general election. [(7)(a)] (6) [Failure to file the statement required by this section subjects a person to a civil penalty that may be imposed as specified in ORS 183.745, but the enforcement of this subsection does not re- quire the Oregon Government Standards and Practices Commission to follow the procedures in ORS 244.260 before finding that a violation of this section has occurred.] [(b) Failure to file the required statement in timely fashion shall be prima facie evidence of a vio- lation of this section.] [(c) If within five days after the date on which the statement is to be filed under this section the statement has not been received by the commission,] If a statement required to be filed under this section has not been received by the commission within five days after the date the state- ment is due, the commission shall notify the public official or candidate and give the public official or candidate not less than 15 days to comply with the requirements of this section. If the public official or candidate fails to comply by the date set by the commission, the commission may impose a civil penalty [of $5 for each day the statement is late beyond the date fixed by the commission. The maximum penalty that may be accrued under this section is $1,000] as provided in ORS 244.850. [(d) A civil penalty imposed under this subsection is in addition to and not in lieu of sanctions that may be imposed under ORS 244.380.] SECTION 18. ORS 244.350 is amended to read: 244.350. (1) The Oregon Government [Standards and PracticesJ Ethics Commission [or the court under ORS 244.260 (8)] may impose civil penalties not to exceed: (a) Except as provided in paragraph (b) of this subsection, [$1,000) $5,000 for [violatingJ vio- lation of any provision of this chapter or any resolution adopted under [this chapter] ORS ~~44.160. (b) $25,000 for violation of ORS 244.045. (2)(a) Except as provided in paragraph (b) of this subsection, the commission may impose civil penalties not to exceed $1,000 for [violating] violation of any provision of ORS 192.660. [How- ever,] (b) A civil penalty may not be imposed under this subsection if the violation occurred as a re- sult of the governing body of the public body acting upon the advice of the public body's counsel. (3) The commission may impose civil penalties not to exceed $250 for violation of ORS 293.708. A civil penalty imposed under this subsection is in addition to and not in lieu of a civil pen- alty that may be imposed under subsection (1) of this section. (4)(a) The commission may impose civil penalties on a person who fails to file the state- ment required under ORS 244.050. In enforcing this subsection, the commission is not re- Enrolled House Bill 2595 (HB 2595-B) Page 11 quired to follow the procedures in ORS 244.260 before finding that a violation of ORB 244.050 has occurred. (b) Failure to file the required statement in timely fashion is prima facie evidence of a violation of ORS 244.050. (c) The commission may impose a civil penalty of $10 for each of the first 14 da:Y's the statement is late beyond the date set by law, or by the commission under ORS 244.050, and $50 for each day thereafter. The maximum penalty that may be imposed under this sub- section is $5,000. (d) A civil penalty imposed under this subsection is in addition to and not in lieu of sanctions that may be imposed under ORS 244.380. [(4) Any penalty imposed under this section is in addition to and not in lieu of any other penalty or sanction that may be imposed according to law, including removal from office.] SECTION 19. ORS 244.360 is amended to read: 244.360. [The Oregon Government Standards and Practices Commission, in addition to civil pen- alties prescribed in ORS 244.350, may require any public official who has financially benefited the public official or any other person by violation of any provision of this chapter to forfeit twice the amount that the public official or any other person realized from violating any provision of this chap- ter.] In addition to civil penalties imposed under ORB 244.350, if a public official has financially benefited the public official or any other person by violating any provision of this chapter, the Oregon Government Ethics Commission or a court may impose upon the public official a civil penalty in an amount equal to twice the amount the public official or other l[>erson realized as a result of the violation. SECTION 20. ORS 244.380 is amended to read: 244.380. (1) [In the event that a public official or candidate subject to the requirements of this chapter, fails to file a statement of economic interests required by this chapter, or by resolution adopted pursuant thereto, the following actions shall be taken, irrespective of other penalties which may be imposed pursuant to this chapter if, after a hearing has been granted the public official and a penalty is imposed under ORS 244.370, the public official continues to refuse to file a statement of economic interests] If the Oregon Government Ethics Commission has imposed a civil penalty under ORB 244.350 on a public official or candidate for failing to file a statement of economic in- terest required under this chapter or a resolution adopted under ORS 244.160 and the public official or candidate continues to refuse to file the statement, the following apply; (a) [Except as to judges, no compensation shall be paid to a salaried public official. Upon notice to the Oregon Department of Administrative Services or to the appropriate local authority from the Oregon Government Standards and Practices Commission of the failure to file the required report when due, compensation shall be withheld and the public official shall be barred from beginning or contin- uing to exercise the official duty of the public official until such time as the public official complies with the requirements of this chapter.] The commission shall notify the Oregon Department of Administrative Services or the local public body, as defined in ORB 174.109, that the public official serves of the failure to file a statement of economic interest. Except for jjudges, during the period beginning on the date the department or public body receives notice from the commission and ending on the date the public official files the statement of economic interest, the department or public body may not pay compensation to the public official and the public official may not begin or continue to exercise the official duty of the public official. In the case of a public official who [receives no] does not receive compensation, the public official [shall be barred from beginning or continuing the] may not begin or continue to exercise [of] the official duty of the public official until [such time as a statement is filed as required under this chapter] the public official files the statement of economic interest. (b) [Upon notice from the commission to the] In the case of a candidate for public offi.ce, the commission shall notify the appropriate chief elections officer of the candidate's failure to file the statement required by this chapterLJ. The chief elections officer shall; Enrolled House Bill 2595 (HE 2595-B) Page 12 (A) If the notice is received on or before the 61st day before the date of the election, cause the name of the candidate lfor public office] to be removed from the ballot on which the name of the candidate would otherwise appear; or (B) If the candidate has been nominated or elected, refuse to issue a certificate of nomination or election. (2) If the name of a candidate for public office is removed from the ballot as provided in sub- section (1) of this section, the name shall be removed in accordance with ORS 254.165. (3) As used in this section, uchief elections officer" has the meaning given that h~nn in ORS 254.005. SECTION 21. ORS 293.708 is amended to read: 293.708. (1) As used in this section: (a) "Business" has the meaning given that term in ORS 244.020. (b) "Business with which the person is associated" has the meaning given that term in ORS 244.020. (c) "Relative" has the meaning given that term in ORS 244.020. (2) When a person who is a member of the Oregon Investment Council becomes aware that action on a matter pending before the council might lead to private pecuniary benefit or detriment to the person, to a relative of the person or to a business with which the person or a relative of the person is associated, the member shall notify in writing the State Treasurer or the Chief Deputy State Treasurer that any action, decision or recommendation by the member might constitute an actual or potential conflict of interest. The member shall provide the notice not later than three business days after the member becomes aware of the possibility of an actual or potential conflict. (3) Subsection (2) of this section does not apply if the pecuniary benefit or detriment arises out of circumstances described in ORS 244.020 (14)(a) to (c). (4) Complaints of violations of this section may be made to the Oregon Government Ethics Commission for review and investigation as provided by ORB 244.260 and for possible imposition of civil penalties as provided by ORS 244.350 or 244.360. [(4)J (5) Nothing in this section excuses a member of the council from compliance with ORS 244.120. SECTION 22. ORS 162.005 is amended to read: 162.005. As used in ORS 162.005 to 162.425 [and 162.465], unless the context requires otherwise: (1) "Pecuniary benefit" means gain or advantage to the beneficiary or to a third person pursuant to the desire or consent of the beneficiary, in the form of money, property, commercial interests or economic gain, but does not include a political campaign contribution reported in accordance with ORS chapter 260. (2) "Public servant" [includes] means: (a) [A public officer or employee of the state or of any political subdivision thereof or of any gov. ernmental instrumentality within the state] A public official as defined in ORS 244.020; (b) A person serving as an advisor, consultant or assistant at the request or direction of the state, any political subdivision thereof or of any governmental instrumentality within the state; (c) A person nominated, elected or appointed to become a public servant, although not yet oc- cupying the position; and (d) Jurors. COMMISSION ADJUDICATION PROCESSES SECTION 23. ORS 244.260 is amended to read: 244.260. [(1)(a) Upon its own instigation or signed complaint of any person, the Oregon Government Standards and Practices Commission may undertake action in the Preliminary Review Phase with reo spect to the contents of any statements filed under this chapter or resolution adopted pursuant thereto or any alleged violation of any provision of this chapter. J Enrolled House Bill 2595 (HB 2595-B) Page 13 [(b) The public official who is the subject of a complaint or of the commission's own action shall be notified immediately upon receipt of the complaint or upon adoption of a motion by the commission to undertake any action concerning the public official. The notice shall be given by telephone if the official can be reached and shall also be in writing mailed to the official. The notice shall include the nature of the complaint or motion and a copy of all materials submitted along with the complaint or materials which give rise to the commission's instigation of action on its own motion. However, the official must also be notified in advance if an issue that may give rise to a motion to undertake action on the commission's own instigation is to be discussed at a commission meeting.] [(c) Before investigating any complaint or undertaking any investigation at the commission's own instigation, if the public official who is the subject of the complaint or of the commission's own action is a member of the Legislative Assembly, the commission shall determine whether the alleged violation of any provision of this chapter involves conduct protected by section 9, Article IV of the Oregon Constitution. If the commission determines that the conduct is protected by section 9, Article IV' of the Oregon Constitution, the commission shall dismiss the complaint or rescind its motion as provided in paragraph (e) of this subsection.] [(d) If the complaint has not been dismissed or the motion of the commission has not been rescinded as described in paragraph (c) of this subsection, before investigating any complaint or undertaking an investigation on the commission's own instigation, the commission shall make a finding that there is cause to undertake an investigation, notify the public official who is the subject of the investigation, identify the issues to be examined and shall confine its investigation to those issues. If the commission finds reason to expand its investigation, it shall move to do so and shall record in its minutes the is- sues to be examined before expanding the scope of its investigation and formally notify the complainant and the public official who is the subject of the complaint of the expansion and the scope thereof.] t(e) If the commission does not make a finding of cause, or if the commission determines that the alleged violation of this chapter involves conduct protected by section 9, Article IV of the Oregon Constitution, the commission shall dismiss the complaint or rescind its motion and shall formally enter the dismissal or rescission on its records. The commission shall notify the public official of the dis- missal or rescission. After dismissal or rescission, the commission shall take no further action involv- ing the public official unless a new and different complaint is filed or action at its own instigation is undertaken based on different conduct.] [(2) The commission may:] [(a) During the Preliminary Review Phase, seek, solicit or otherwise obtain any books, papers, re- cords, memoranda or other additional information, administer oaths and take depositions neces'sary to determine whether there is cause or if the alleged violation is protected by section 9, Article IV of the Oregon Constitution; and] [(b) During the Investigatory Phase, require any additional information, administer oaths, take depositions and issue subpoenas to compel attendance of witnesses and the production of books, papers, records, memoranda or other information necessary to complete the investigation. If any person fails to comply with any subpoena issued under this section or refuses to testify on any matters on which the person may be lawfully interrogated, the procedure provided in ORS 183.440 shall be followed to compel compliance.] [(3) The person conducting any inquiry or investigation shall do so in an impartial, objective manner. All favorable and unfavorable information collected by the investigator shall be turned over to the commission.) [(4) The {indings of the commission in any inquiry or investigation shall be reported impartially, including both favorable and unfavorable findings, and shall be made available to the public official who is the subject thereof, to the appointing authority, if any, and to the Attorney General for state public officials and to the appropriate district attorney for local public officials. The findings shall be made available to the Commission on Judicial Fitness and Disability in any investigation involving a judge. J Enrolled House Bill 2595 (HB 2595-B) Page 14 [(5) Hearings relating to any charge of alleged violation of this chapter must be held before an administrative law judge assigned from the Office of Administrative Hearings established under ORS 183.605. The procedure shall be that for a contested case under ORS chapter 183.] (1)(a) Any person may file with the Oregon Government Ethics Commission a signed written complaint alleging that there has been a violation of any provision of this chapter or of any rule adopted by the commission under this chapter. The complaint shall st~lte the person's reason for believing that a violation occurred and include any evidence relating to the alleged violation. (b) If at any time the commission has reason to believe that there has been a violation of a provision of this chapter or of a rule adopted by the commission under this chapt,er, the commission may proceed under this section on its own motion as if the commission had re. ceived a complaint. (2)(a) Not later than two business days after receiving a complaint under this section, the commission shall notify the person who is the subject of the complaint. (b) Before approving a motion to proceed under this section without a complaint, the commission shall provide notice to the person believed to have committed the viola1;ion of the time and place of the meeting at which the motion will be discussed. If the commission decides to proceed on its own motion, the commission shall give notice to the person not later than two business days after the motion is approved. (c) The commission shall give notice of the complaint or motion under paragraph (a) or (b) of this subsection by mail and by telephone if the person can be reached by telephone. The notice must describe the nature of the alleged violation. The mailed notice must include copies of all materials submitted with a complaint. If the commission will consider a motion to proceed without a complaint, the notice must provide copies of all materials that the commission will consider at the hearing on the motion. (3) After receiving a complaint or deciding to proceed on its own motion, the commission shall undertake action in the Preliminary Review Phase to determine whether there is. cause to undertake an investigation. If the person who is the subject of the action is a member of the Legislative Assembly, the commission shall determine whether the alleged violation in- volves conduct protected by section 9, Article IV of the Oregon Constitution. [(6)(a)] (4)(a) [The period of time from the filing of a complaint or from acting on the commission's own instigation to the finding of cause or dismissal of the complaint or rescission of the motion shall be termed the Preliminary Review Phase and shall not exceed 90 days unless] The Prelimina.ry Re- view Phase begins on the date the complaint is filed or the date the commission decides to proceed on its own motion and ends on the date the commission determines there is cause to undertake an investigation, dismisses the complaint or rescinds its own motion. The Preliminary Review Phase may not exceed 135 days unless: (A) A delay is stipulated to by both the (public official] person who is the subject of action under this section and the lOregon Government Standards and Practices] commission with the commission reserving a portion of the delay period to complete its actions[.J; or (B) A complaint is filed under this section with respect to a person who is a caIlLdidate for elective public office, the complaint is filed within 61 days before the date of an election at which the person is a candidate for nomination or election and a delay is requested in writing by the candidate. If the candidate makes a request under this subparagraph, the Preliminary Review Phase must be completed not later than 135 days after the date of the first meeting of the commission that is held after the date of the election. (b) During the Preliminary Review Phase, the commission may seek, solicit or otherwise obtain any books, papers, records, memoranda or other additional information, administer oaths and take depositions necessary to determine whether there is cause to undert~"ke an investigation or whether the alleged violation involves conduct protected by section 9, Article IV of the Oregon Constitution. Enrolled House Bill 2595 (HB 2595-B) Page 15 l(b)] (c) The Preliminary Review Phase [shall be] is confidential. Commission members and staff may acknowledge receipt of a complaint but [shall make no] may not make any public comment or publicly disclose any materials relating to a case during the Preliminary Review Phase. A person who intentionally violates this paragraph is subject to a civil penalty in an amount not to exceed $1,000. Any person aggrieved as a result of a violation of this paragraph by a member of the com- mission or its staff may file a petition in a court of competent jurisdiction in the county in which the petitioner resides in order to enforce the civil penalty provided in this paragraph. [(c)] (d) [The commission's deliberations of a case at the conclusion of the Preliminary Review Phase shall be conducted] At the conclusion of the Preliminary Review Phase, the commission shall conduct its deliberations in executive session. All case related materials and proceedings shall be open to the public after the commission makes a finding of cause to undertake an inves- tigation, dismisses a complaint or rescinds a motion. Prior to the end of the Preliminary Review Phase, the executive director of the commission shall prepare a statement of the facts determined during the phase, including appropriate legal citations and relevant authorities. Before presentation to the commission, the executive director's statement shall be reviewed by legal counsel to the commission. [(d)] (e) The time limit imposed in this subsection and the commission's inquiry are suspended if: (A) There is a pending criminal investigation that relates to the issues arising out of the underlying facts or conduct at issue in the matter before the commission unless the parties stipulate otherwise; or (B) A court has enjoined the commission from continuing its inquiry. (5)(a) If the commission detennines that there is not cause to undertake an investiigation or that the alleged violation of this chapter involves conduct protected by section 9, Article IV of the Oregon Constitution, the commission shall dismiss the complaint or rescind its motion and fonnally enter the dismissal or rescission in its records. The commission shall notify the person who is the subject of action under this section of the dismissal or rescission. Mter dismissal or rescission, the commission may not take further actilon in- volving the person unless a new and different complaint is filed or action on the commis- sion's own motion is undertaken based on different conduct. (b) If the commission makes a finding of cause to undertake an investigation, the com- mission shall undertake action in the Investigatory Phase. The commission shall notify the person who is the subject of the investigation, identify the issues to be examined and (~onfine the investigation to those issues. If the commission finds reason to expand the investigation, the commission shall move to do so, record in its minutes the issues to be examined before expanding the scope of its investigation and fonnally notify the complainant, if any, and the person who is the subject of the investigation of the expansion and the scope of the investi- gation. [(7)(a)] (6)(a) {The period of time from the finding of cause to the beginning of any contested case proceedings shall be termed the Investigatory Phase and shall] The Investigatory Phase be~~ns on the date the commission makes a finding of cause to undertake an investigation and ends on the date the commission dismisses the complaint, rescinds its own motion, issues a settlement order, moves to commence a contested case proceeding or takes other action justified by the findings. The Investigatory Phase may not exceed [120] 180 days unless a delay is stipulated to by both the [public official] person who is the subject of action under this :section and the [Oregon Government Standards and Practices] commission with the commission reserving a portion of the delay period to complete its actions. (b) During the Investigatory Phase, the commission may seek any additional infonnation, administer oaths, take depositions and issue subpoenas to compel attendance of witnesses and the production of books, papers, records, memoranda or other information necessary to complete the investigation. If any person fails to comply with any subpoena issued under this paragraph or refuses to testify on any matters on which the person may be lawfully inter- Enrolled House Bill 2595 (HB 2595-B) Page 16 rogated, the commission shall follow the procedure described in ORB 183.440 to compel compliance. l(b)] (c) The time limit imposed in this subsection and the commission's investigation al"e sus- pended if: (A) There is a pending criminal investigation that relates to the issues arising out of the underlying facts or conduct at issue in the matter before the commission unless the parties stipulate otherwise; or (B) A court has enjoined the commission from continuing its investigation. [(c)] (d) At the end of the Investigatory Phase, the commission shall take action by orderL which]. The action may include: (A) Dismissal, with or without comment; (B) Continuation of the investigation [to determine further facts, but no more than one continua- tion, not to exceed 30 days' duration, shall be taken] for a period not to exceed 30 days for the purpose of additional fact~finding; (C) Moving to a contested case proceeding; [(D) Seeking a negotiated settlement; or] (D) Entering into a negotiated settlement; or (E) Taking other appropriate action if justified by the findings. (e) The commission may move to a contested case proceeding if the commission deter- mines that the information presented to the commission is sufficient to make a preliminary finding of a violation of any provision of this chapter or of any rule adopted by the commis- sion under this chapter. [(8) If, at the end of the Investigatory Phase, the commission takes action by order to move to a contested case proceeding, a public official may notify the commission that the official elects to have the commission file a lawsuit against the official in the Marion County Circuit Court in lieu of the con- tested case proceeding. The public official shall notify the commission of the election in writing no later than 21 days after receiving notification of the commission's action by order to move to the contested case proceeding. The commission shall file suit within 30 days after receiving notice that the public official has elected the lawsuit procedure.] (7) A person conducting any inquiry or investigation under this section shall: (a) Conduct the inquiry or investigation in an impartial and objective manner; andl (b) Provide to the commission all favorable and unfavorable information the person col- lects. (8) The commission shall report the findings of any inquiry or investigation in an im- partial manner. The commission shall report both favorable and unfavorable findin:gs and shall make the findings available to: (a) The person who is the subject of the inquiry or investigation; (b) The appointing authority, if any; (c) The Attorney General, if the findings relate to a state public official; (d) The appropriate district attorney, if the findings relate to a local public official; and (e) The Commission on Judicial Fitness and Disability, if the findings relate to a judge. (9) Hearings conducted under this chapter must be held before an administrative law judge assigned from the Office of Administrative Hearings established under ORS 183.605. The procedure shall be that for a contested case under ORS chapter 183. [(9)] (10) The Oregon Government Ethics Commission [shall] may not inquire into or investi- gate any [complaint or act at its own instigation on alleged] conduct that occurred more than four years before [the] a complaint is filed or [action is undertaken] a motion is approved undier sub~ section (1) of this section. [(10)] (11) [Nothing in this section is intended to] This section does not prevent the commission and the [public official or other] person alleged to have violated any provision of this chapter or any rule adopted by the commission under this chapter from stipulating to a finding of fact Enrolled House Bill 2595 (HB 2595-B) Page 17 concerning the violation and consenting to an appropriate penalty. The commission shall enter an order [accordingly} based on the stipulation and consent. (12) At any time during proceedings conducted under this section, the commission may enter into a negotiated settlement with the person who is the subject of action under this section. [(l1)J (13) As used in this section: (a) "Cause" means that there is a substantial, objective basis for believing that an offense or violation may have been committed and the person who is the subject of an inquiry may have com- mitted the offense or violation. (b) "Pending" means that a prosecuting attorney is either actively investigating the factual basis of the alleged criminal conduct, is preparing to seek or is seeking an accusatory instrument, has obtained an accusatory instrument and is proceeding to trial or is in trial or in the process of ne- gotiating a plea. SECTION 24. ORS 171.778 is amended to read: 171.778. [(1) Upon its own instigation or signed complaint of any person, the Oregon Government Standards and Practices Commission may undertake action in the Preliminary Review Phase with re- spect to any alleged violation ofORS 171.725 to 171.785. The person who is the subject ofa complaint or of the commission's own action shall be notified immediately upon receipt of the complaint or upon adoption of a motion by the commission to undertake any action concerning the person. The notice shall be given by telephone if the person can be reached and a notice shall also be mailed to the person. The notice shall include the nature of the complaint or motion and a copy of all materials submitted along with the complaint or materials which give rise to the commission's instigation of action on its own motion. However, the person must also be notified in advance if an issue that may give rise to a motion to undertake action on the commission's own instigation is to be discussed at a commission meeting. Before investigating any complaint or undertaking an investigation on its own instigation, the com- mission shall make a finding that there is cause to undertake an investigation, notify the person who is the subject of the investigation, identify the issues to be examined and shall confine its investigation to those issues. If the commission finds reason to expand its investigation, it shall move to do so and shall record in its minutes the issues to be examined before expanding the scope of its investigation and formally notify the complainant and the person who is the subject of the complaint of the expansion and the scope thereof If the commission does not make a finding of cause, it shall dismiss the com- plaint or rescind its motion and shall formally enter the dismissal or rescission on its records. The commission shall notify the person of the dismissal or rescission. After dismissal or rescission, the commission shall take no further action involving the person unless a new and different complaint is filed or action at its own instigation is undertaken based on different conduct.J [(2) The commission may:] [(a) During the Preliminary Review Phase, seek, solicit or otherwise obtain any books, papers, re- cords, memoranda or other additional information, administer oaths, and take depositions necessary to determine whether there is cause; and] [(b) During the Investigatory Phase, require any additional information, administer oaths, take depositions and issue subpoenas to compel attendance of witnesses and the production of books, papers, records, memoranda or other information necessary to complete the investigation. If any person fails to comply with any subpoena issued under this section or refuses to testify on any matters on which the person may be lawfully interrogated, the procedure provided in ORS 183.440 shall be followed to compel compliance.] [(3) The person conducting any inquiry or investigation shall do so in an impartial, objective manner. All favorable and unfavorable information collected by the investigator shall be turned over to the commission.] [(4) The findings of the commission in any inquiry or investigation shall be reported impartially, including both favorable and unfavorable findings, and shall be made available to the person who is the subject thereof and to any employer of the person. J Enrolled House Bill 2595 (HB 2595- B) Page 18 [(5) Hearings relating to any charge of alleged violation of ORS 171.725 to 171.785 must be held before an administrative law judge assigned from the Office of Administrative Hearings established under ORS 183.605. The procedure shall be that for a contested case under ORS chapter 183.J (1)(a) Any person may file with the Oregon Government Ethics Commission a signed written complaint alleging that there has been a violation of any provision of ORB 17L725 to 171.785 or of any rule adopted by the commission under ORS 171.725 to 171.785. The complaint shall state the person's reason for believing that a violation occurred and include any evi- dence relating to the alleged violation. (b) If at any time the commission has reason to believe that there has been a violation of a provision of ORS 171.725 to 171.785 or of a rule adopted by the commission under ORS 171.725 to 171.785, the commission may proceed under this section on its own motion as if the commission had received a complaint. (2)(a) Not later than two business days after receiving a complaint under this section, the commission shall notify the person who is the subject of the complaint. (b) Before approving a motion to proceed under this section without a complaint, the commission shall provide notice to the person believed to have committed the violation of the time and place of the meeting at which the motion will be discussed. If the commission decides to proceed on its own motion, the commission shall give notice to the person not later than two business days after the motion is approved. (c) The commission shall give notice of the complaint or motion under paragraph (a) or (b) of this subsection by mail and by telephone if the person can be reached by telephone. The notice must describe the nature of the alleged violation. The mailed notice must include copies of all materials submitted with a complaint. If the commission will consider a motion to proceed without a complaint, the notice must provide copies of all materials that the commission will consider at the hearing on the motion. (3) After receiving a complaint or deciding to proceed on its own motion, the commission shall undertake action in the Preliminary Review Phase to determine whether there is cause to undertake an investigation. [(6)(a)} (4)(a) [The period of time from the filing of a complaint or from acting on the commission's own instigation to the finding of cause or dismissal of the complaint or rescission of the motion shall be termed the Preliminary Review Phase and shall not exceed 90 days} The Preliminary Review Phase begins on the date the complaint is filed or the date the commission decides to plroceed on its own motion and ends on the date the commission determines there is cause to undertake an investigation, dismisses the complaint or rescinds its own motion. The Pre~ liminary Review Phase may not exceed 135 days unless a delay is stipulated to by both the sub- ject person and the [Oregon Government Standards and PracticesJ commission, with the commission reserving a portion of the delay period to complete its actions. (b) During the Preliminary Review Phase, the commission may seek, solicit or otherwise obtain any books, papers, records, memoranda or other additional information, administer oaths and take depositions necessary to determine whether there is cause to undertake an investigation. [(b)} (c) The Preliminary Review Phase [shall be} is confidential. Commission members and staff may acknowledge receipt of a complaint but [shall make no] may not make any public comment or publicly disclose any materials relating to a case during the Preliminary Review Phase. A person who intentionally violates this paragraph is subject to a civil penalty in an amount not to exceed $1,000. Any person aggrieved as a result of a violation of this paragraph by a member of the com- mission or its staff may file a petition in a court of competent jurisdiction in the county in which the petitioner resides in order to enforce the civil penalty provided in this paragraph. [(c)] (d) [The commission's deliberations of a case at the conclusion of the Preliminary Review Phase shall be conductedJ At the conclusion of the Preliminary Review Phase, the commission shall conduct its deliberations in executive session. All case related materials and proceedings shall be open to the public after the commission makes a finding of cause to undertake an inves- Enrolled House Hill 2595 (HE 2595-B) Page 19 tigation, dismisses a complaint or rescinds a motion. Prior to the end of the Preliminary Review Phase, the executive director of the commission shall prepare a statement of the facts determined during the phase, including appropriate legal citations and relevant authorities. Before presentation to the commission, the executive director's statement shall be reviewed by legal counsel to the commission. [(d)J (e) The time limit imposed in this subsection and the commission's inquiry are suspended if: (A) There is a pending criminal investigation that relates to the issues arising out of the underlying facts or conduct at issue in the matter before the commission, unless the parties stipulate otherwise; or (B) A court has enjoined the commission from continuing its inquiry. (5)(a) If the commission determines that there is not cause to undertake an illlvesti- gation, the commission shall dismiss the complaint or rescind its motion and formally' enter the dismissal or rescission in its records. The commission shall notify the person who is the subject of the inquiry of the dismissal or rescission. Mter dismissal or rescission, the com- mission may not take further action involving the person unless a new and different com. plaint is filed or action on the commission's own motion is undertaken based on dHl'erent conduct. (b) H the commission makes a finding of cause to undertake an investigation, th,~ com- mission shall undertake action in the Investigatory Phase. The commission shall notiify the person who is the subject of the investigation, identify the issues to be examined and confine the investigation to those issues. H the commission finds reason to expand the investil~ation, the commission shall move to do so, record in its minutes the issues to be examined before expanding the scope of its investigation and formally notify the complainant, if any, and the person who is the subject of the investigation of the expansion and the scope of the illlvesti- gation. [(7)(a)] (6)(a) [The period of time from the finding of cause to the beginning of any contested case proceedings shall be termed the Investigatory Phase and shall] The Investigatory Phase begins on the date the commission makes a finding of cause to undertake an investigation and ends on the date the commission dismisses the complaint, rescinds its own motion, issues a settlement order, moves to commence a contested case proceeding or takes other action justified. by the findings. The Investigatory Phase may not exceed [120] 180 days unless a delay is stipulated to by both the subject person and the [Oregon Government Standards and Practices] commission, with the commission reserving a portion of the delay period to complete its actions. (b) During the Investigatory Phase, the commission may seek any additional information, administer oaths, take depositions and issue subpoenas to compel attendance of witnesses and the production of books, papers, records, memoranda or other information necessary to complete the investigation. If any person fails to comply with any subpoena issued under this paragraph or refuses to testify on any matters on which the person may be lawfully inter- rogated, the commission shall follow the procedure described in ORS 183.440 to (~ompel compliance. [(b)J (c) The time limit imposed in this subsection and the commission's investigation are sus- pended if: (A) There is a pending criminal investigation that relates to the issues arising out of the underlying facts or conduct at issue in the matter before the commission, unless the parties stipulate otherwise; or (B) A court has enjoined the commission from continuing its investigation. [(c)J (d) At the end of the Investigatory Phase, the commission shall take action by orderL whichJ. The action may include: (A) Dismissal, with or without comment; Enrolled House Bill 2595 (HB 2595-B) Page 20 (B) Continuation of the investigation lto determine further facts, but no more than one continua- tion, not to exceed 30 days' duration, shall be taken] for a period not to exceed 30 days for the purpose of additional fact.finding; (C) Moving to a contested case proceeding; [(D) Seeking a negotiated settlement; or] (D) Entering into a negotiated settlement; or (E) Taking other appropriate action if justified by the findings. (e) The commission may move to a contested case proceeding if the commission deter- mines that the information presented to the commission is sufficient to make a preliminary finding of a violation of any provision of ORS 171.725 to 171.785 or of any rule adopted by the commission under ORS 171.725 to 171.785. [(8) If, at the end of the Investigatory Phase, the commission takes action by order to moue to a contested case proceeding, a person may notify the commission that the person elects to have the com- mission file a lawsuit against the person in the Marion County Circuit Court in lieu of the contested case proceeding. The court may impose the penalty described in ORS 171.992. The person shall notify the commission of the election in writing no later than 21 days after receiving notification of the com- mission's action by order to moue to the contested case proceeding. The commission shall fl1e suit within 30 days after receiuing notice that the person has elected the lawsuit procedure.] (7) A person conducting any inquiry or investigation under this section shall: (a) Conduct the inquiry or investigation in an impartial and objective manner; and (b) Provide to the commission all favorable and Wlfavorable information the person col- lects. (8) The commission shall report the findings of any inquiry or investigation in ,iUl im- partial manner. The commission shall report both favorable and unfavorable findinl~ and shall make the findings available to: (a) The person who is the subject of the inquiry or investigation; and (b) Any employer of the person. (9) Hearings conducted under ORB 171.725 to 171.785 must be held before an administra- tive law judge assigned from the Office of Administrative Hearings established under ORS 183.605. The procedure shall be that for a contested case under ORS chapter 183. [(9)] (10) The commission lshallJ may not inquire into or investigate any [complaint or act at its own instigation on alleged] conduct that occurred more than four years before [the] a complaint is filed or [action is undertaken] a motion is approved under subsection (1) of this section. [(10)] (11) [Nothing in this section is intended to] This section does not prevent the commission and the person alleged to have violated any provision of ORS 171.725 to 171.785 or any rule adopted by the commission under ORB 171.725 to 171.785 from stipulating to a finding of fact concerning the violation and consenting to an appropriate penalty. The commission shall enter an order [accordingly] based on the stipulation and consent. (12) At any time during proceedings conducted under this section, the commission may enter into a negotiated settlement with the person who is the subject of action undler this section. [(11)] (13) As used in this section, "cause" and "pending" have the meanings given thos€~ terms in ORS 244.260. SECTION 25. ORS 244.370 is amended to read: 244.370. (1) Any civil penalty under ORS 244.350 or 244.360 shall be imposed in the manner prescribed by ORS 183.745. (2) Notwithstanding ORS 183.745, a hearing {shall be] is required in all cases prior to imposition of a penalty unless the public official or candidate waives the hearing. The public official or can- didate to whom the notice is addressed [shall have] has 10 days from the date of service of the notice in which to waive a hearing before the Oregon Government [Standards and Practices] Ethics Commission and the public official or candidate shall be so notified. Enrolled House Bill 2595 (HB 2595-B) Page 21 (3) All penalties recovered under ORS 244.350 and 244.360 shall be paid into the State Treasury and credited to the General Fund. SECTION 26. ORS 244.400 is amended to read: 244.400. (1) A [public official or person described in ORS 171.778] person who prevails fo]lowing a contested case hearing under this chapter or ORB 171.778 [or a lawsuit under ORS 244.260J shall be awarded reasonable attorney fees at the conclusion of the contested case or on appeal. (2) Upon prevailing following [the conclusion of] a contested case hearing or lawsuit, the [public official or] person may petition the [Circuit Court forJ Marion County Circuit Court for the purpose of determining the award of reasonable attorney fees. The Oregon Government [Standards and PracticesJ Ethics Commission shall be named as a respondent in the petition. The petitioner and respondent shall follow the procedure provided in ORCP 68 for the determination of reasonable at. torney fees. The court shall give precedence on its docket to petitions filed under this subsection as the circumstances may require. (3) [The Court of Appeals] An appellate court shall award reasonable attorney fees to the [public official or] person if the [public official] person prevails on appeal from any [decisions] de- cision of the commission [or of the Marion County Circuit Court]. (4) Attorney fees to be awarded under this section shall be only those fees incurred by the [public official or] person from the time the commission notifies the [public official orJ person that it has entered an order to move to a contested case proceeding. (5) Any attorney fees awarded to the [public official] person pursuant to this section shall be paid by the commission from moneys appropriated or allocated to the commission from the General Fund. NEPOTISM SECTION 26a. Sections 26b to 26d of tbis 2007 Act are added to and made a part of ORS chapter 244. SECTION 26b. As used in sections 26c and 26d of this 2007 Act: (1) "Governing body" has the meaning given that tenn in ORS 192.610. (2) "Member of the household" means any person who resides with the public offieial. (3) "Public body" has the meaning given that tenn in ORS 174.109. (4) "Relative" means the spouse or domestic partner of the public official, any children of the public official or of the public official's spouse or domestic partner, and brothers, sisters, half brothers, half sisters, brothers-in-law, sisters.in-Iaw, sons-in-law, daughters-in- law, mothers-in-law, fathers-in-law, aunts, uncles, nieces, nephews, stepparents, stepchildren or parents of the public official or of the public official's spouse or domestic partner. SECTION 26c. (1) Except as provided in subsections (2) to (4) of this section: (a) A public official may not appoint, employ or promote a relative or member of the household to, or discharge, fire or demote a relative or member of the household from, a position with the public body that the public official serves or over which the public official exercises jurisdiction or control, unless the public official complies with the conflict of in. terest requirements of this chapter. (b) A public official may not participate as a public official in any interview, disc:ussion or debate regarding the appointment, employment or promotion of a relative or member of the household to, or the discharge, tIring or demotion of a relative or member of the household from, a position with the public body that the public official serves or over which the public official exercises jurisdiction or control. As used in this paragraph, "partieipate" does not include serving as a reference, providing a recommendation or perfonning: other ministerial acts that are part of the normal job functions of the public official. (2) A member of the Legislative Assembly may appoint, employ, promote, discharl~e, fire or demote, or advocate for the appointment, employment, promotion, discharge, firing or Enrolled House Bill 2595 (HB 2595- B) Page 22 demotion of, a relative or member of the household to or from a position on the personal legislative staff of the member of the Legislative Assembly. (3)(a) A public official may appoint, employ, promote, discharge, fire or demote, or ad- vocate for the appointment, employment, promotion, discharge, firing or demotion of, a rel- ative or member of the household to or from a position as an unpaid volunteer with the public body that the public official serves or over which the public official exercises juris~ diction or control. (b) Paragraph (a) of this subsection does not apply to the appointment, employment, promotion, discharge, firing or demotion of a relative or member of the household to a po- sition as an unpaid member of a governing body of the public body that the public official serves or over which the public official exercises jurisdiction or control. (c) A relative or member of the household described in paragraph (a) of this subsection may receive reimbursement of expenses provided in the ordinary course of business to sim- ilarly situated unpaid volunteers. (4) This section does not prohibit a public body from appointing, employing, promoting, discharging, firing or demoting a person who is a relative or member of the household of a public official serving the public body. SECTION 26d. (1) Notwithstanding ORS 659A.309 and except as provided in subsE~ctions (2) to (4) of this section, a public official acting in an official capacity may not directly su- pervise a person who is a relative or member of the household. (2) A member of the Legislative Assembly may directly supervise a person who: (a) Is a relative or member of the household; and (b) Serves as a public official in a position on the personal legislative staff of the member of the Legislative Assembly. (3)(a) A public official acting in an official capacity may directly supervise a person who is a relative or member of the household if the person serves as an unpaid volunteer. (b) Paragraph (a) of this subsection does not apply to service by a person in a position as an unpaid member of a governing body that a public official of whom the person is a rel- ative or member of the household serves or over which the public official exercises jurisdic- tion or control. (c) A relative or member of the household serving as an unpaid volunteer descrihed in paragraph (a) of this subsection may receive reimbursement of expenses provided in the or- dinary course of business to similarly situated unpaid volunteers. (4) A public body may adopt policies specifying when a public official acting in an official capacity may directly supervise a person who is a relative or member of the household. MISCELLANEOUS PROVISIONS SECTION 27. ORS 171.772 is amended to read: 171. 772. In carrying out the provisions of ORS 171.725 to 171.785, the Oregon Government [Standards and Practices] Ethics Commission shall: (1) Prescribe by rule forms for registrations, statements and reports required to be filed by ORS 171.725 to 171.785, and provide [such] the forms to persons required to register and to file [such] the statements and reports; (2) Accept and file any information voluntarily supplied that exceeds the requirements of ORS 171.725 to 171.785; and (3) Make registrations, statements and reports filed available for public inspection and copying during regular office hours, and make copying facilities available at a charge not to exceed actual cost. SECTION 28. ORS 244.010 is amended to read: 244.010. (1) The Legislative Assembly [hereby] declares that [a public office] service as a public official is a public trustLJ and that, as one safeguard for that trust, the people require all public Enrolled House Bill 2595 (HB 2595-B) Page 23 officials to ladhere to the code of ethics set forth in ORB 244.040] comply with the applicable pro- visions of this chapter. (2) The Legislative Assembly recognizes that it is the policy of the state to have serving on many state and local boards and commissions state and local officials who may have potentially conflicting public responsibilities by virtue of their positions as public officials and also as members of the boards and commissions, and declares it to be the policy of the state that the holding of such offices does not constitute the holding of incompatible offices unless expressly stated in the enabling legislation. SECTION 29. ORS 244.055 is amended to read: 244.055. (1) In addition to the statement required by ORS 244.050, the State Treasurer and any person listed under ORS 244.050 (l)(q) and this subsection shall file quarterly at a time fixed by the State Treasurer a trading statement listing all stocks, bonds and other types of securities purchased or sold during the preceding quarter: (a) Directors of the Cash Management Division and the Debt Management Division. (b) Equities, fixed income, short term fund, real estate, equities real estate and commercial and mortgage real estate investment officers and assistant investment officers. (c) Fixed income and short term fund investment analysts. (2) The statement required by subsection 0) of this section shall be filed for review with the State Treasurer, the Attorney General and the Division of Audits of the office of the Secretary of State. The content of the statement is confidential. (3) If the State Treasurer or the Chief Deputy State Treasurer determines that a conflict of in- terest exists for an officer or employee, the State Treasurer shall subject the person to appropriate discipline, including dismissal or termination of the contract, or both, pursuant to rule. If the State Treasurer has cause to believe that a violation of this chapter has occurred, the State Treasurer shall file a complaint with the Oregon Government [Standards and Practices] Ethics Commission under ORS 244.260. (4) If the State Treasurer fails to act on an apparent conflict of interest under subsection (3) of this section or if the statement of the State Treasurer or the Chief Deputy State Treasurer ap- pears to contain a conflict of interest, the Director of the Division of Audits shall report the failure or apparent conflict to the Attorney General, who may file a complaint with the commission, [(5) A person tiling the statement required by subsection (1) of this section must verify that the statement is complete and accurate. A person who intentionally fails to file a complete and accurate statement commits a Class C felony and may also be subject to ORS 162.075.] SECTION 30. Section 31 of this 2007 Act is added to and made a part of ORS chapt_er 244. SECTION 31. A person who intentionally fails to file a complete and accurate statement under ORS 244.055 commits a Class C felony. SECTION 32. ORS 244.090 is amended to read: 244.090. (I) Each public official [of this state] or candidate required to [make] file a statement of economic interest under this chapter shall [report by J include on the statement the name of any compensated lobbyist who, during the preceding calendar year, was associated with a business with which the public official or candidate or a member of the household of the public official or candidate was also associated. [Holding stock in a publicly traded corporation in which the lobbyist also holds stock is not a relationship for which a statement is required. j (2) Subsection (1) of this section does not apply if the only relationship between the public official or candidate and the lobbyist is that the public official or candidate and lobbyist hold stock in the same publicly traded corporation. [(2)] (3) As used in this section, "lobbyist" has the meaning [set forth] given that term :In ORS 171. 725. SECTION 33. ORS 244.115 is amended to read: 244.115. (1) Each member of Congress from this state and each candidate for la seat in Congress} nomination or election to the office of United States Representative in Congress or United States Senator from this state shall file with the Oregon Government [Standards and Enrolled House Bill 2595 (HB 2595-B) Page 24 Practices] Ethics Commission a copy of the federal ethics filing required under federal law or by congressional rule. (2) The member or candidate shall file the information required under subsection (1) of this section not later than [within] 30 days after the filing date required under federal law or congressional rule. If the filing is not made in a timely manner, the commission shall obtain copies of the filing and indicate [thereon] on the filing that the filing was not made with the commission by the member [of Congress] or candidate. (3) All [such] filings made under this section are public records available for public inspection. SECTION 34. ORS 244.160 is amended to read: 244.160. (1) Any political subdivision in this state, other than a city or county, by resolution may require any public official of the subdivision to file a verified statement of economic interest[. The filing shall be made] with the Oregon Government [Standards and Practices] Ethics Commission. (2) The political subdivision shall file a copy of the resolution [A copy of the ordinance shall be filed] with the commission. SECTION 35. ORS 244.300 is amended to read: 244.300. (1) Records of the Oregon Government [Standards and Practices] Ethics Commission [shall constitute] are public records of this state. (2) All information submitted to the commission in any statement required under this chapter is a public record. SECTION 36. ORS 244.320 is amended to read: 244.320. (1) The Oregon Government [Standards and Practices] Ethics Commission shall [cause to have prepared and published] prepare and publish a manual on government ethics that explains in terms understandable to legislative and public officials and the public the requirements of this chapter and the commission's interpretation of those requirements whether stated by rule or in an opinion. The manual shall set forth recommended uniform reporting methods for use by persons filing statements under this chapter. (2) In preparing the manual, the commission shall [be guided in preparing its manual by] consider the format of the manual prepared by the Attorney General to guide public officials and the public in the requirements of ORS chapter 192. (3) The lmanual required by this section shall be updated] commission shall update the manual as often as the commission believes necessary but no less frequently than once every four years. (4) The commission shall make copies of the manual available in an electronic fonnat on the Internet. SECTION 37. ORS 244.340 is amended to read: 244.340. The Oregon Government [Standards and Practices] Ethics Commission shall prepare and present a program of continuing education for public officials. [and lobbyists. For this purpose,] The commission may use its own staff or may contract for the preparation [and] or pres- entation of lthis program, or both] the program of continuing education. SECTION 38. ORS 469.810 is amended to read: 469.810. (1) A Pacific Northwest Electric Power and Conservation Planning Council memberL] or member of the council member's household[, as defined in ORB 244.020, shall] may not own or have any beneficial interest in any stock or indebtedness of any utility or direct service industry. (2) A council memberl,l or a member of [a] the council member's household[, as defined in ORS 244.020, shall] may not be a director, officer, agent or employee of any utility or direct service in- dustry. (3) A council memberL] or a member of la] the council member's household[, as defined in ORS 244.020, shall] may not be a director, officer, agent or employee of or hold any proprietary interest in any consulting firm [whichJ that does business with any utility or direct service industry. (4) A council member[,] or a member of the council member's household[, as defined in ORS 244.020, shall] may not receive any compensation from any utility or direct service industry arising out of the member's business, trade or profession. Enrolled House Bill 2595 (HB 2595- B) Page 25 (5) A council member lshall be consideredJ is a public official land be] subject to the provisions and reporting requirements of ORS chapter 2441. including the reporting requirements thereof]. (6) A council member lshallJ must be a citizen of the United States and [have been a resident of] must have resided in the State of Oregon for at least one year preceding appointment. (7) A council member lshall] may not hold any other elected or appointed [public] luerative public office or be principally engaged in any other business or vocation. (8) As used in this section: (a) "Beneficial interest" does not include an interest in a pension fund, a mutual fund or an in- surance fund. (b) "Consulting firm" means any corporation, partnership or sole proprietorship whose principal business is providing personal services. (c) "Member of the household" means any relative who resides with the council member. (d) "Relative" means the spouse of the council member, any children of the council member or of the council member's spouse, and brothers, sisters or parents of the council member or of the council member's spouse. l(c)J (e) "Utility or direct service industry" means a utility or direct service industry customer that purchases electrical energy directly from the Bonneville Power Administration. CONFORMING CHANGES SECTION 39. ORS 171.745 is amended to read: 171.745. (1) A lobbyist registered with the Oregon Government [Standards and Practices] :Ethics Commission or required to register with the commission shall, on January 31 and July 31, of each even-numbered year, and on January 31, April 30 and July 31 of each odd-numbered year, file with the commission a statement showing: (a) The total amount of all moneys expended by the lobbyist for the purpose of lobbying in the preceding reporting period for: (A) Food, refreshments and entertainment; (B) Printing, postage and telephone; (C) Advertising, public relations, education and research; and (D) Miscellaneous; and (b) The name of any legislative or executive official to whom or for whose benefit, on anyone occasion, an expenditure in excess of $25 is made for the purposes of lobbying, and the date, name of payee, purpose and amount of that expenditure. (2) Beginning on July 1, 1979, the dollar amount specified in subsection (1)(b) of this section shall be adjusted annually by the commission based upon the change in the Portland Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor or its successor during the preceding 12-month period. The amount determined under this subsection shall be rounded to the nearest dollar. (3) Statements required by this section need not include amounts expended by the lobbyist for personal living and travel expenses and office overhead, including salaries and wages paid for staff and secretarial assistance, and maintenance expenses. If the amount of any expenditure required to be included in a statement is not accurately known at the time the statement is required to be filed, an estimate of the expenditure shall be submitted in the statement and designated as an estimate. The exact amount expended for which a previous estimate was made shall be submitted in a subse- quent report when the information is available. (4) Notwithstanding ORS 171.735, 171.740 and subsections (1) to (3) of this section, a regjstered lobbyist, who engages in lobbying activities without compensation on behalf of an organization is not required to register as a lobbyist for the organization as long as the lobbying activity dnes not exceed the financial or time limits set in ORS 171.735 (4). (5) A statement required by this section shall include a copy of any notice provided to a public official under ORS 244.100 [(3)]. Enrolled House Bill 2595 (HB 2595-B) Page 26 (6) For each statement required by this section, an entity comprised of more than one lobbyist may file one statement that reports expenditures by the entity and not by individual lobbyists. SECTION 40. ORS 171.750 is amended to read: 171.750. (1) Any person on whose behalf a lobbyist was registered, or was required to register with the Oregon Government [Standards and Practices] Ethics Commission at any time during the preceding calendar year, shall file with the commission, by January 31st of each year, a statement showing, for the preceding calendar year: (a) The total amount of all moneys expended for lobbying activities on the person's behalf, ex~ eluding living and travel expenses incurred for a lobbyist performing lobbying services. (b) The name of any legislative or executive official to whom or for whose benefit, on anyone occasion, an expenditure in excess of $25 for the purpose of lobbying is made by the person, but not including information previously reported in compliance with ORS 171.745, and the date, name of payee, purpose and amount of that expenditure. (2) Using July 1, 1979, as the base, the dollar amount specified in subsection (1)(b) of this section shall be adjusted annually by the commission based upon the change in the Portland Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor, or its successor, during the preceding 12-month period. The amount determined under this subsection shall be rounded to the nearest dollar. (3) A statement required under subsection (1) of this section shall include a copy of any notice provided to a public official under ORS 244.100 [(3)}. SECTION 40a. ORS 244.345 is amended to read: 244.345. The Oregon Government [Standards and Practices] Ethics Commission Account is es- tablished separate and distinct from the General Fund. All moneys received by the Oregon Govern- ment [Standards and Practices] Ethics Commission, other than appropriations from the General Fund, shall be deposited into the account and are continuously appropriated to the commission to carry out the duties, functions and powers of the commission. SECTION 40b. (I) The amendments to ORS 244.250 by section 1 of this 2007 Act are in- tended to change the name of the "Oregon Government Standards and Practices Commission" to the "Oregon Government Ethics Commission." (2) The amendments to ORS 244.345 by section 40a of this 2007 Act are intended to (:hange the name of the "Oregon Government Standards and Practices Commission Account" to the "Oregon Government Ethics Commission Account." (3) For the purpose of hannonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the "Oregon Government Standards and Practices Commission," wherever they occur in Oregon Revised Statutes, other words designating the "Oregon Government Ethics Commission." (4) For the purpose of hannonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the "Oregon Government Standards and Practices Commission Account," wherever they occur in Oregon Revised Statutes, other words designating the "Oregon Government Ethics Commission Ac- count." TRANSITION PROVISIONS SECTION 41. ORS 244.030, 244.080, 244.180, 244.190 and 244.201 are repealed. SECTION 42. ORS 244.340 and 244.345 are added to and made a part of ORS chapu>r 244. SECTION 43. (1) Sections 4, 5, 13, 14, 15, 26a to 26d, 30 and 31 of this 2007 Ad, the amendments to ORS 162.005, 171.745, 171.750, 171.772, 171.778,244.010,244.020,244.050,244.055, 244.090, 244.100, 244.110, 244.115, 244.130, 244.180, 244.195, 244.250, 244.260, 244.270, 244.280, 244.290, 244.300, 244.310, 244.320, 244.340, 244.345, 244.350, 244.360, 244.370, 244.380, 244.390, 244.400, 293.708 and 469.810 by sections 1 to 3, 6 to 12, 16 to 29 and 32 to 40a of this 2007 Act Enrolled House Bill 2595 (HB 2595-B) Page 27 and the repeal of ORS 244.030, 244.080, 244.180, 244.190 and 244.201 by section 41 of this 2007 Act become operative on January I, 2008. (2) The Oregon Government Ethics Commission, a state agency as defined in ORS 183.750 and any statewide association of public bodies as defined in ORS 174.109 may adopt rules or policies or take any other action before the operative date specified in subsection (1) of this section that is necessary to enable the commission, the state agency or any public body that is a member of a statewide association of public bodies to exercise, on or after the opl~rative date specified in subsection (1) of this section, all the duties, functions and powers conferred on the commission, state agency or public body by this 2007 Act. SECTION 44. (1) Section 5 of this 2007 Act and the amendments to ORS 244.390 by section 2 of this 2007 Act apply to alleged violations of any provision of ORB chapter 244 that occur on or after January 1, 2008. (2) The amendments to ORS 244.280 by section 12 of this 2007 Act apply to commission advisory opinions issued on or after January 1, 2008. (3) Section 14 of this 2007 Act applies to staff advisory opinions issued on or after Janu- ary 1, 2008. (4) Section 15 of this 2007 Act applies to staff advice issued on or after January 1, 2008. SECTION 45. The amendments to ORS 244.130 by section 9 of this 2007 Act apply to de- cisions or actions made or taken by public officials on or after January 1, 2008. SECTION 46. (1) The amendments to ORS 244.050 hy section 17 of this 2007 Act apply to statements of economic interest required to be filed on or after January 1, 2008. (2) The amendments to ORS 244.350 by section 18 of this 2007 Act apply to: (a) Violations of any provision of ORS chapter 244 or any resolution adopted unde:r ORS 244.160 occurring on or after January 1, 2008; (b) Violations of ORS 293.708 occurring prior to, on or after January 1, 2008; and (c) Statements of economic interest required to be filed on or after January 1, 2008. (3) The amendments to ORS 244.360 and 244.370 by sections 19 and 25 of this 2007 Act apply to violations of any provision of ORS chapter 244 or any resolution adopted undE~r ORS 244.160 occurring prior to, on or after January 1, 2008. (4) The amendments to ORS 244.390 by section 2 of this 2007 Act apply to penalties or sanctions imposed for violations that occur on or after January 1, 2008. (5) The amendments to ORB 244.270 by section 11 of this 2007 Act apply to violations of any provision of ORS chapter 244 or any rule adopted under ORB chapter 244 occurring on or after January 1, 2008. (6) The amendments to ORB 244.380 by section 20 of this 2007 Act apply to statE~ments of economic interest required to be filed prior to, on or after January 1, 2008. (7) The amendments to ORB 293.708 by section 21 of this 2007 Act apply to violations of ORB 293.708 occurring prior to, on or after January 1, 2008. (8) Section 31 of this 2007 Act and the amendments to ORS 244.055, 244.090 and l!44.110 by sections 7, 29 and 32 of this 2007 Act apply to statements required to be filed on or after January 1, 2008. (9) The amendments to ORB 162.005 by section 22 of this 2007 Act apply to violations that occur on or after January 1, 2008. (10) The amendments to ORS 171.778, 244.260 and 244.400 by sections 23, 24 and 26 of this 2007 Act apply to complaints filed on or after January 1, 2008, and actions first commenced by the Oregon Government Ethics Commission on its own motion on or after January 1, 2008. (11) The amendments to ORS 244.100 by section 6 of this 2007 Act apply to noti<~es for expenses incurred on or after the effective date of this 2007 Act. (12) The amendments to ORS 244.195 by section 10 of this 2007 Act apply to copies of statements and explanations required to be provided to public officials who are elected or appointed on or after January 1, 2008. Enrolled House Bill 2595 (HE 2595-8) Page 28 (13) The amendments to ORS 244.300 by section 35 of this 2007 Act apply to infonnation submitted on or after January 1, 2008. SECTION 47. (1) Any proceeding, action, prosecution or other business or matter undertaken or commenced before January 1, 2008, by the Oregon Government Ethics, Com- mission under any provision of ORB chapter 244 and still pending on January 1, 2008, shall be conducted and completed by the commission in the same manner, under the same tenns and conditions and with the same effect as though undertaken, conducted or completed be- fore January 1, 2008. (2) Nothing in this 2007 Act relieves any person of any obligation with respect to any tax, fee, fine, civil penalty or other charge, interest, penalty, forfeiture or other liability, duty or obligation. SECTION 48. (1) Section 26c of this 2007 Act applies to appointments, employment, pro- motions, discharges, firings, demotions or advocacy that first occurs on or after January 1, 2008. (2) Section 26d of this 2007 Act applies to supervisory relationships that first oc(~ur on or after January 1, 2008. SECTION 49. The unit captions used in this 2007 Act are provided only for the conven- ience of the reader and do not become part of the statutory law of this state or express any legislative intent in the enactment of this 2007 Act. SECTION 50. This 2007 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2007 Act takes effect July 1, 2007. Passed by House June 7, 2007 Received by Governor: Repassed by House June 25, 2007 .......... ..............M., ...................... .............................. ...., 2007 Approved: Chief Clerk of House .............. .........M., ........................................................, 2007 Speaker of House Governor Passed by Senate June 24, 2007 Filed in Office of Secretary of State: ........................M., .............. ..............................., 2007 President of Senate Secretary -of State Enrolled House Bill 2595 (HB 2595-B) Page 29 74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session Enrolled Senate Bill 10 Sponsored by Senators BROWN, COURTNEY, Representative MERKLEY; Senator MORRISETTE (Pre session filed.) CHAPTER AN ACT Relating to government ethics; creating new provisions; amending ORS 171.725, 171.730, 171.735, 171.740, 171.745, 171.750, 171.772, 171.992, 244.020, 244.040, 244.045, 244.050, 244.060, :~44.070, 244.100, 244.110, 244.280, 244.290, 244.350, 244.360, 244.390, 260.407, 293.708, 351.067 and 353.270 and sections 5, 14, 15 and 40b, chapter _, Oregon Laws 2007 (Enrolled House Bill 25~15); and declaring an emergency. Be It Enacted by the People of the State of Oregon: COMMISSION FUNDING SECTION 1. Section 2 of this 2007 Act is added to and made a part of ORS chapte!r 244. SECTION 2. (1) The Oregon Government Standards and Practices Commission shall es- timate in advance the expenses that it will incur during a biennium in carrying out the provisions of ORS 171.725 to 171.785 and 171.992 and this chapter. The commission shall also detennine what percentage of the expenses should be borne by the following two groups of public bodies: (a) Public bodies in state government; and (b) Local governments, local service districts and special government bodies that are subject to the Municipal Audit Law. (2) The commission shall charge each public body for the public body's share of the ex- penses described in subsection (1) of this section for the biennium. The amount to be charged each public body shall be detennined as follows: (a) The commission shall determine the rate to be charged public bodies in state gov- ernment. The same rate shall be applied to each public body described in this paragraph. To detennine the amount of the charge for each public body, the commission shall multiply the rate determined under this paragraph by the number of public officials serving the public body, (b) The commission shall set the charge for local governments, local service districts and special government bodies that are subject to the Municipal Audit Law so that eac:h local government, local service district or special government body described in this paragraph pays an amount of the total expenses for the group that bears the same proportion to the total expenses that the amount charged to the local government, local service district or special government body for the municipal audit fee under ORS 297.485 bears to the total amount assessed for the municipal audit fee. Enrolled Senate Bill 10 (SB lO-C) Page 1 (3) Each public body shall pay to the credit of the commission the charge described in this section as an administrative expense from funds or appropriations available to the public body in the same manner as other claims against the public body are paid. (4) All moneys received by the commission under this section shall be credited to the Oregon Government Standards and Practices Commission Account established unde:r ORS 244.345. (5) The commission shall adopt rules specifying the methods for calculating and collect- ing the rates and charges described in this section. (6) As used in this section: (a) "Local government" and "local service district" have the meanings given those terms in ORB 174.116. (b) "Public body" has the meaning given that term in ORB 174.109. (c) "Public official," notwithstanding ORS 244.020 (13), means any person who, on the date the commission charges the public body under this section, is serving the public body as an officer or employee. (d) "Special government body" has the meaning given that term in ORB 174.117. (e) "State government" has the meaning given that term in ORS 174.111. SECTION 3. The Oregon Government Standards and Practices Commission shall first impose charges under section 2 of this 2007 Act for the biennium beginning July 1, 2009. REPORTING REQUIREMENTS SECTION 4. Section 5 of this 2007 Act is added to and made a part of ORS 171.725 to 171.785. SECTION 5. Statements required to be filed with the Oregon Government Standards and Practices Commission under ORB 171.745 and 171.750 shall be filed in each calendar y<<~ar: (1) Not later than April 15, for the accounting period beginning January 1 and ending March 31; (2) Not later than July 15, for the accounting period beginning April 1 and endinlg- June 30; (3) Not later than October 15, for the accounting period beginning July 1 and ending September 30; and (4) Not later than January 15 of the following calendar year, for the accounting period beginning October 1 and ending December 31. SECTION 6. ORS 171.725 is amended to read: 171.725. As used in ORB 171.725 to 171.785, unless the context requires otherwise: (1) "Compensation" has the meaning given that term in ORB 292.951. (2) "Consideration" includes a gift, payment, distribution, loan, advance or deposit of money or anything of value, and includes a contract, promise or agreement, whether or not legally enforcea- ble. (3) "Executive agency" means a commission, board, agency or other body in the executive branch of state government that is not part of the legislative or judicial branch. (4) "Executive official" means any member or member-elect of an executive agency and any member of the staff or an employee of an executive agency. A member of a state board or commis- sion, other than a member who is employed in full-time public service, is not an executive official for purposes of ORB 171.725 to 171.785. (5) "Judge" means an active judge serving on the Oregon Supreme Court, Court of Appeals, Oregon Tax Court, or an Oregon circuit court. (6) "Legislative action" means introduction, sponsorship, testimony, debate, voting or any other official action on any measure, resolution, amendment, nomination, appointment, or report, or any matter that may be the subject of action by either house of the Legislative Assembly, or any com- mittee of the Legislative Assembly, or the approval or veto thereof by the Governor. Enrolled Senate Bill 10 (SB lO-C) Page 2 (7) "Legislative official" means any member or member-elect of the Legislative Assembly, any member of an agency, board or committee that is part of the legislative branch, and any staff person, assistant or employee thereof. (8) "Lobbying" means influencing, or attempting to influence, legislative action through oral or written communication with legislative officials, solicitation of [others] executive officials or other persons to influence or attempt to influence legislative action or attempting to obtain the goodwill of legislative officials. (9) "Lobbyist" means: (a) Any individual who agrees to provide personal services for money or any other consideration for the purpose of lobbying. (b) Any person not otherwise subject to paragraph (a) of this subsection who provides personal services as a representative of a corporation, association, organization or other group, for the pur- pose of lobbying. (c) Any public official who lobbies. (10) "Public agency" means a commission, board, agency or other governmental body. (11) "Public official" means any member or member-elect of any public agency and any member of the staff or an employee of the public agency. SECTION 6a. ORS 171.730 is amended to read: 171. 730. The Legislative Assembly finds that, to preserve and maintain the integrity of the leg- islative process, persons who engage in efforts to [persuade members of the Legislative Assembly or the executive branch to take specific actions] influence legislative action, either by direct <:ommu- nication with [members or employees of the Legislative Assembly or the executive branch] legislative officials or by solicitation of [others] executive officials or other persons to engage in those ef- forts, should regularly report their efforts to the public. SECTION 6b. ORS 171. 735 is amended to read: 171.735. ORS 171.740 and 171.745 do not apply to the following persons: (1) News media, or their employees or agents, that in the ordinary course of business directly or indirectly urge legislative action but that engage in no other activities in connection with the legislative action. (2) Any legislative official acting in an official capacity. (3) Any individual who lreceives no] does not receive compensation or reimbursement of ex- penses for lobbying, who limits lobbying activities solely to formal appearances to give testimony before public sessions of committees of the Legislative Assembly, or public hearings of state agen- cies, and who, when testifying, registers an appearance in the records of the committees or agencies. (4) A person who [spends not) does not spend more than an aggregate amount of 24 hours during any calendar quarter lobbying and who does not spend an aggregate amount in excess of $100 lobbying during any calendar quarter. (5) The Governor, [Executive Assistant to] chief of staff for the Governor, [Legal Counsel] deputy chief of staff for the Governor, legal counsel to the Governor, deputy legal counsel to the Governor, Secretary of State, Deputy Secretary of State appointed pursuant to ORS 177.040, State Treasurer, Chief Deputy State Treasurer appointed pursuant to ORS 178.060, chief of staff for the office of the State Treasurer, Attorney General, Deputy Attorney General appointed pursuant to ORS 180.130, Superintendent of Public Instruction, Commissioner of the Bureau of Labor and Industries, members and staff of the Oregon Law Commission who conduct the !law re- vision program of the commission or [and] any judge. SECTION 6c. ORS 171.740 is amended to read: 171.740. (1) Within three [workingJ business days after exceeding the limit of time or expendi- ture specified in ORS 171.735 (4), a lobbyist shall register with the Oregon Government Standards and Practices Commission by filing with the commission a statement containing the following in- formation: (a) The name, address and telephone number of the lobbyist. Enrolled Senate Bill 10 (SB 10-C) Page 3 (b) The name, address and telephone number of each person that employs the lobbyist or in whose interest the lobbyist appears or works. (e) A general description of the trade, business, profession or area of endeavor of any person designated under paragraph (b) of this subsection, and a statement by the person that the lobbyist is officially authorized to lobby for the person. (d) The name of any member of the Legislative Assembly employed, retained or otherwise com- pensated by: (A) The lobbyist designated under paragraph (a) of this subsection; or (B) A person designated under paragraph (b) of this subsection. (e) The general subject or subjects of the legislative action of interest to the person for whom the lobbyist is registered. (2) The designation of official authorization to lobby shall be signed by an official of each person that employs the lobbyist or in whose interest the lobbyist appears or works. (3) A lobbyist must file a separate registration statement under this section fOlr each person that employs the lobbyist or in whose interest the lobbyist appears or wor:k;s. If a lobbyist appears or works for a person for whom the lobbyist has not registered, the lobbyist shall register with the commission [within three working days of the lobbyist's appearance] not later than three business days after the day the lobbyist first appears or works for the person. (4) If any of the information submitted by a lobbyist in the statement required under subsection (1) of this section changes, the lobbyist shall revise the statement within 30 days of the change. (5) A lobbyist registration expires December 31 of an odd-numbered year. If a lobbyist renews the registration before March 31 of the following even-numbered year, the commission shall consider the registration to have been effective as of December 31 of the odd-numbered year on which the registration expired. (6) For the statement required by this section, an entity comprised of more than one lobbyist may file one statement for the lobbyists [that] who comprise the entity. The statement the entity files must include the names of the individuals authorized to lobby on behalf of the client listed in the statement. SECTION 6d. ORS 171.745 is amended to read; 171.745. (1) A lobbyist registered with the Oregon Government Standards and Practices Com- mission or required to register with the commission shall, [on January 31 and July 31, of each even-numbered year, and on January 31, April 30 and July 31 of each odd-numbered year] according to the schedule described in section 5 of this 2007 Act, file with the commission a statement showing for the applicable reporting period: (a) The total amount of all moneys expended for food, refreshments and entertainment by the lobbyist for the purpose of lobbying. [in the preceding reporting period for:J [(A) Food, refreshments and entertainment;] [(B) Printing, postage and telephone;] [(C) Advertising, public relations, education and research; and] [(D) Miscellaneous; and] [(b) The name of any legislative or executive official to whom or for whose benefit, on anyone oc- casion, an expenditure in excess of $25 is made for the purposes of lobbying, and the date, name of payee, purpose and amount of that expenditure. J (b) The name of any legislative or executive official to whom or for whose benefit, on any one occasion, an expenditure is made for the purposes of lobbying, and the date, n.ame of payee, purpose and amount of that expenditure. This paragraph applies if the total amount expended on the occasion by one or more persons exceeds $50. [(2) Beginning on July 1, 1979, the dollar amount specified in subsection (1)(b) of this section shall be adjusted annually by the commission based upon the change in the Portland Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor or its successor during the preceding 12-month period. The amount deter- mined under this subsection shall be rounded to the nearest dollar. J Enrolled Senate Bill 10 (SB la-C) Page 4 [(3)] (2) Statements required by this section need not include amounts expended by the lobbyist for personal living and travel expenses and office overhead, including salaries and wages paid for staff and secretarial assistance, and maintenance expenses. If the amount of any expenditure re- quired to be included in a statement is not accurately known at the time the statement is required to be filed, an estimate of the expenditure shall be submitted in the statement and designated as an estimate. The exact amount expended for which a previous estimate was made shall be submitted in a subsequent report when the information is available. [(4) Notwithstanding ORB 171.735, 171.740 and subsections (1) to (3) of this section, a registered lobbyist, who engages in lobbying activities without compensation on behalf of an organization is not required to register as a lobbyist for the organization as long as the lobbying activity does not exceed the financial or time limits set in ORB 171.735 (4).J [(5)] (3) A statement required by this section shall include a copy of any notice provided to a public official under ORB 244.100 [(3)] (2). [(6)] (4) For each statement required by this section, an entity comprised of more than one lobbyist may file one statement that reports expenditures by the entity and not by individual lobbyists. SECTION 7. ORB 171.750 is amended to read: 171.750. (1) Any person on whose behalf a lobbyist was registered, or was required to register, with the Oregon Government Standards and Practices Commission at any time during the [preceding] calendar yearL] shall file with the commission, [by January 31st of each year] according to the schedule described in section 5 of this 2007 Act, a statement showing[,] for the [preceding calendar year] applicable reporting period: (a) The total amount of all moneys expended for lobbying activities on the person's behalf, ex- cluding living and travel expenses incurred for a lobbyist performing lobbying services. [(b) The name of any legislative or executive official to whom or for whose benefit, on anyone oc- casion, an expenditure in excess of $25 for the purpose of lobbying is made by the person, but not in- cluding information previously reported in compliance with ORS 171. 745, and the date, name ot payee, purpose and amount of that expenditure.] (b) The name of any legislative or executive official to whom or for whose benefit, .on any one occasion, an expenditure is made for the purposes of lobbying by the person, and the date, name of payee, purpose and amount of that expenditure. This paragraph applies if the total amount expended on the occasion by one or more persons exceeds $50. This paragraph does not apply to infonnation reported in compliance with ORS 171.745. (c) The name of each registered lobbyist or entity comprised of more than one lobbyist to whom the person paid moneys for lobbying activities on the person's behalf, exduding living and travel expenses incurred for a lobbyist perfonning lobbying services, and the total amount of moneys paid to that lobbyist or entity. [(2) Using July 1, 1979, as the base, the dollar amount specified in subsection (1)(b) of this section shall be adjusted annually by the commission based upon the change in the Portland Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor, or its successor, during the preceding 12-month period. The amount determined under this subsection skall be rounded to the nearest dollar.] [(3)] (2) A statement required under subsection (1) of this section shall include a copy of any notice provided to a public official under ORS 244.100 [(3)] (2). SECTION 8. ORB 171.772 is amended to read: 171.772. In carrying out the provisions of ORB 171.725 to 171.785, the Oregon Government Standards and Practices Commission shall: (1) Prescribe forms for registrations, statements and reports required to be filed by ORS 171.725 to 171.785L] and provide [suchJ the forms to persons required to register and to file [such] the statements and reports[;]. (2) Accept and file any information voluntarily supplied that exceeds the requirements of ORS 171.725 to 171.785". and]. Enrolled Senate Bill 10 (SB 10-C) Page 5 (3) Make registrations, statements and reports filed available for public inspection and copying during regular office hours, and make copying facilities available at a charge not to exceed actual cost. (4) Adopt by rule an electronic filing system under which statements required to be filed under ORB 171.745 and 171.750 may be filed with the conunission in an electronic format. The commission may not charge a fee for filing a statement under this subsection. The conunis- sion shall accept statements filed under ORS 171.745 and 171.750 in a format that is not electronic. (5) Provide training on procedures for filing statements under subsection (4) of this sec- tion. (6) Make statements filed under ORS 171.745 and 171.750, including statements that are not filed in an electronic format, available in a searchable format for review by the public using the Internet. SECTION 8a. ORB 171.772, as amended by section 8 of this 2007 Act, is amended to read: 171.772. In carrying out the provisions of ORB 171.725 to 171.785, the Oregon Government Standards and Practices Commission shall: (1) Prescribe forms for registrations, statements and reports required to be filed by ORS 171.725 to 171.785 and provide the forms to persons required to register and to file the statements and re- ports. (2) Accept and file any information voluntarily supplied that exceeds the requirements of ORB 171.725 to 171.785. (3) Make registrations, statements during regular office hours, and make cost. (4) Adopt by rule an electronic filing system under which statements required to be filed. under ORS 171.745 and 171.750 [may] must be filed with the commission in an electronic format. The commission may not charge a fee for filing a statement under this subsection. lThe commission shall accept statements filed under ORB 171.745 and 171.750 in a format that is not electronic.] (5) Provide training on procedures for filing statements under subsection (4) of this section. (6) Make statements filed under ORS 171.745 and 171.750L including statements that are not filed in an electronic format, J available in a searchable format for review by the public using the Internet. SECTION 8b. The amendments to ORS 171.772 by section 8a of this 2007 Act become op~ erative January 1, 2010. SECTION 9. ORS 244.290 is amended to read: 244.290. (l) The Oregon Government Standards and Practices Commission shall: [(1)] (a) Prescribe forms for statements required by this chapter and provide the forms to per- sons required to file the statements under this chapter or resolution adopted [pursuant thereto] un- der this chapter. [(2)] (b) Prepare, publish and provide a manual setting forth recommended uniform methods of reporting for use by persons filing statements under this chapter or resolution adopted [pursuant thereto] under this chapter. [(3)J (c) Develop a filing, coding and cross-indexing system consistent with the purposes of this chapter. [(4)J (d) Prepare and publish [such] any reports [asJ the commission [finds] detennines are and reports filed copying facilities available for public inspection and copying available at a charge not to exceed actual necessary. (e) Not later than February 1 of each odd-numbered year, report to the Legislative As- sembly any recommended changes to provisions of ORB 171.725 to 171.785 or this chapter. [(5)] (2) The conunission shall adopt rules necessary to carry out its duties under ORS 171.725 to 171.785 and 171.992 and this chapter, including rules to: (a) Create a procedure under which items before the commission may be treated under a consent calendar and voted on as a single item; Enrolled Senate Bill 10 (SB 10-C) Page 6 (b) Exempt a public official who is otherwise required to file a statement pursuant to ORS 244.050 from filing the statement if the regularity, number and frequency of the meetings and actions of the body over which the public official has jurisdiction are so few or infrequent as not to warrant the public disclosure; (c) Establish an administrative process whereby a person subpoenaed by the commission may obtain a protective order; [andJ (d) List criteria and establish a process for the commission to use prosecutorial discretion to decide whether to proceed with an inquiry or investigationLJ; and (e) Describe the application of provisions exempting items from the definition of "gift" in ORS 244.020 (5)(b) and the application of the prohibition on entertainment contained in section 18 of this 2007 Act. (3) The commission shall adopt by rule an electronic filing system under which state- ments required to be filed under ORB 244.050 and 244.100 and section 35 of this 2007 Aet may be filed, without a fee, with the commission in an electronic format. The commission shall accept statements filed under ORB 244.050 and 244.100 and section 35 of this 2007 Ad in a format that is not electronic. (4) The commission shall make statements filed under ORS 244.050 and 244.100 and sec- tion 35 of this 2007 Act, including statements that are not rIled in an electronic format, available in a searchable format for review by the public using the Internet. SECTION 9a. ORS 244.290, as amended by section 9 of this 2007 Act, is amended to read: 244.290. (1) The Oregon Government Standards and Practices Commission shall: (a) Prescribe forms for statements required by this chapter and provide the forms to persons required to file the statements under this chapter or resolution adopted under this chapter. (b) Prepare, publish and provide a manual setting forth recommended uniform methods of re- porting for use by persons filing statements under this chapter or resolution adopted under this chapter. (c) Develop a filing, coding and cross-indexing system consistent with the purposes of this chapter. (d) Prepare and publish any reports the commission determines are necessary. (e) Not later than February 1 of each odd-numbered year, report to the Legislative Assembly any recommended changes to provisions of ORB 171.725 to 171.785 or this chapter. (2) The commission shall adopt rules necessary to carry out its duties under ORB 171.725 to 171.785 and 171.992 and this chapter, including rules to: (a) Create a procedure under which items before the commission may be treated under a eonsent calendar and voted on as a single item; (b) Exempt a public official who is otherwise required to file a statement pursuant to ORB 244.050 from filing the statement if the regularity, number and frequency of the meetings and actions of the body over which the public official has jurisdiction are so few or infrequent as not to warrant the public disclosure; (c) Establish an administrative process whereby a person subpoenaed by the commission may obtain a protective order; (d) List criteria and establish a process for the commission to use prosecutorial discretion to decide whether to proceed with an inquiry or investigation; and (e) Describe the application of provisions exempting items from the definition of "gift" jin ORB 244.020 (5)(b) and the application of the prohibition on entertainment contained in section 18 of this 2007 Act. (3) The commission shall adopt by rule an electronic filing system under which statements re- quired to be filed under ORB 244.050 and 244.100 and section 35 of this 2007 Act [mayJ must be filed, without a fee, with the eommission in an electronie format. [The commission shall accept statements filed under ORS 244.050 and 244.100 and section 35 of this 2007 Act in a format that is not electronic.) Enrolled Senate Bill 10 (SB lO-C) Page 7 (4) The commission shall make statements filed under ORB 244.050 and 244.100 and section 35 of this 2007 Act[, including statements that are not filed in an electronic format, J available in a searchable format for review by the public using the Internet. SECTION 9b. The amendments to ORB 244.290 by section 9a of this 2007 Act become op- erative January 1, 2010. SECTION 9c. If House Bill 2595 becomes law, sections 9 and 9a of this 2007 Act (amlmding ORB 244.290) and section 9b of this 2007 Act are repealed and ORS 244.290, as amended by section 3, chapter _, Oregon Laws 2007 (Enrolled House Bill 2595), is amended to read: 244.290. (1) The Oregon Government Ethics Commission shall: (a) Prescribe forms for statements required by this chapter and provide the forms to persons required to file the statements under this chapter or pursuant to a resolution adopted under ORB 244.160. (b) Develop a filing, coding and cross-indexing system consistent with the purposes of this chapter. (c) Prepare and publish reports the commission finds are necessary. (d) Make advisory opinions issued by the commission or the executive director of the commis- sion available to the public at no charge on the Internet. (e) Accept and file any information voluntarily supplied that exceeds the requirements of this chapter. (D Make statements and other information filed with the commission available for public in~ spection and copying during regular office hours, and make copying facilities available at a charge not to exceed actual cost. (g) Not later than February 1 of each odd-numbered year, report to the Legislative As. sembly any recommended changes to provisions of ORS 171.725 to 171.785 or this chapter. (2) The commission shall adopt rules necessary to carry out its duties under ORB 171.725 to 171.785 and 171.992 and this chapter, including rules to: (a) Create a procedure under which items before the commission may be treated under a eonsent calendar and voted on as a single item; (b) Exempt a public official who is otherwise required to file a statement pursuant to ORB 244.050 from filing the statement if the regularity, number and frequency of the meetings and actions of the body over which the public official has jurisdiction are so few or infrequent as not to warrant the public disdosure; (c) Establish an administrative proeess whereby a person subpoenaed by the commission may obtain a protective order; (d) List criteria and establish a process for the commission to use prosecutorial discretion to decide whether to proceed with an inquiry or investigation; (e) Establish a procedure under which the commission shall conduct accuracy audits of a sample of reports or statements filed with the commission under this chapter or ORB 171.725 to 171.785; (f) Describe the application of provisions exempting items from the definition of "I~ft" in ORS 244.020 (5)(b) and the application of the prohibition on entertainment contained in sec- tion 18 of this 2007 Act; [(f)] (g) Specify when a continuing violation is considered a single violation or a separate and distinct violation for each day the violation occurs; and l(g) J (h) Bet eriteria for determining the amount of civil penalties that the eommission may im- pose. (3) The commission may adopt rules that: (a) Limit the minimum size of, or otherwise establish criteria for or identify, the smaller classes that qualify under the class exception from the definition of "potential conflict of interest" under ORS 244.020; (b) Require the disclosure and reporting of gifts or other compensation made to or received by a public official or candidate for publie offiee; Enrolled Senate Bill 10 (SB 10-C) Page 8 (c) Establish criteria for cases in which information relating to notices of actual or potential conflicts of interest shall, may not or may be provided to the commission under ORB 244.130; or (d) Allow the commission to accept the filing of a statement containing less than all of the in- formation required under ORB 244.060 and 244.070 if the public official or candidate for publie office certifies on the statement that the information contained on the statement previously filed is un- changed or certifies only as to any changed material. (4) Not less frequently than once each calendar year, the commission shall: (a) Consider adoption of rules the commission deems necessary to implement or interpret pro- visions of this chapter relating to issues the commission determines are of general interest to public officials or candidates for public office or that are addressed by the commission or by commission staff on a recurring basis; and (b) Review rules previously adopted by the commission to determine whether the rules have continuing applicability or whether the rules should be amended or repealed. (5) The commission shall adopt by rule an electronic filing system under which state- ments required to be filed under ORB 244.050 and 244.100 and section 35 of this 2007 Aet may be filed, without a fee, with the commission in an electronic format. The commission shall accept statements filed under ORS 244.050 and 244.100 and section 35 of this 2007 A(:t in a format that is not electronic. (6) The commission shall make statements filed under ORB 244.050 and 244.100 and sec- tion 35 of this 2007 Act, including statements that are not filed in an electronic fbrmat, available in a searchable format for review by the public using the Internet. SECTION 9d. If House Bill 2595 becomes law, ORB 244.290, as amended by section 3, chapter _, Oregon Laws 2007 (Enrolled House Bill 2595), and section 9c of this 2007 Act, is amended to read: 244.290. (1) The Oregon Government Ethics Commission shall: (a) Prescribe forms for statements required by this chapter and provide the forms to persons required to file the statements under this chapter or pursuant to a resolution adopted under ORB 244.160. (b) Develop a filing, coding and cross-indexing system consistent with the purposes of this chapter. (c) Prepare and publish reports the commission finds are necessary. (d) Make advisory opinions issued by the commission or the executive director of the commis- sion available to the public at no charge on the Internet. (e) Accept and file any information voluntarily supplied that exceeds the requirements of this chapter. (f) Make statements and other information filed with the commission available for public in- spection and copying during regular office hours, and make copying facilities available at a charge not to exceed actual cost. (g) Not later than February 1 of each odd-numbered year, report to the Legislative Assembly any recommended changes to provisions of ORB 171.725 to 171.785 or this chapter. (2) The commission shall adopt rules necessary to carry out its duties under ORB 171.725 to 171.785 and 171.992 and this chapter, including rules to: (a) Create a procedure under which items before the commission may be treated under a eonsent calendar and voted on as a single item; (b) Exempt a public official who is otherwise required to file a statement pursuant to ORB 244.050 from filing the statement if the regularity, number and frequency of the meetings and actions of the body over which the public official has jurisdiction are so few or infrequent as not to warrant the public disclosure; (c) Establish an administrative process whereby a person subpoenaed by the commission may obtain a protective order; (d) List criteria and establish a process for the commission to use prosecutorial discretion to decide whether to proceed with an inquiry or investigation; Enrolled Senate Bill 10 (SB lO-C) Page 9 (e) Establish a procedure under which the commission shall conduct accuracy audits of a sample of reports or statements filed with the commission under this chapter or ORS 171.725 to 171.785; (D Describe the application of provisions exempting items from the definition of "gift" in ORS 244.020 (5)(b) and the application of the prohibition on entertainment contained in section 18 of this 2007 Act; (g) Specify when a continuing violation is considered a single violation or a separate and dis- tinct violation for each day the violation occurs; and (h) Set criteria for determining the amount of civil penalties that the commission may impose. (3) The commission may adopt rules that: (a) Limit the minimum size of, or otherwise establish criteria for or identify, the smaller dasses that qualify under the class exception from the definition of "potential conflict of interest" under ORS 244.020; (b) Require the disclosure and reporting of gifts or other compensation made to or received by a public official or candidate for public office; (c) Establish criteria for cases in which information relating to notices of actual or potential conflicts of interest shall, may not or may be provided to the commission under ORS 244.130; or (d) Allow the commission to accept the filing of a statement containing less than all of the in- formation required under ORS 244.060 and 244.070 if the public official or candidate for publie office certifies on the statement that the information contained on the statement previously filed is un- changed or certifies only as to any changed material. (4) Not less frequently than once each calendar year, the commission shall: (a) Consider adoption of rules the commission deems necessary to implement or interpret pro- visions of this chapter relating to issues the commission determines are of general interest to public officials or candidates for public office or that are addressed by the commission or by commission staff on a recurring basis; and (b) Review rules previously adopted by the commission to determine whether the rules have continuing applicability or whether the rules should be amended or repealed. (5) The commission shall adopt by rule an electronic filing system under which statements re- quired to be filed under ORS 244.050 and 244.100 and section 35 of this 2007 Act [may] must be filed, without a fee, with the commission in an electronic format. [The commission shall accept statements filed under ORS 244.050 and 244.100 and section 35 of this 2007 Act in a format that is not electronic. ] (6) The commission shall make statements filed under ORS 244.050 and 244.100 and section 35 of this 2007 ActL including statements that are nut filed in an electronic format,] available in a searchable format for review by the public using the Internet. SECTION ge. If House Bill 2595 becomes law, the amendments to ORS 244.290 by section 9d of this 2007 Act become operative January 1, 2010. CIVIL PENALTIES SECTION 10. ORS 171.992 is amended to read: 171.992. (1) Any person who violates any provision of ORS 171.740 to 171.762, or any rule adopted [pursuant thereto] under ORB 171.725 to 171.785, shall forfeit and pay to the General Fund for each violation a civil penalty [for each violation] of not more than [$1,000J $5,000, to be deter- mined by the Oregon Government Standards and Practices Commission. (2)(a) The commission may impose civil penalties upon a person who fails to fHe the statement required under ORS 171.745 or 171.750. In enforcing this subsection, the commis- sion is not required to follow the procedures in ORS 171.778 before finding that a violation of ORS 171.745 or 171.750 has occurred. (b) Failure to file the required statement in timely fashion is prima facie eviden<:e of a violation of ORS 171.745 or 171.750. Enrolled Senate Bill 10 (SB lO-C) Page 10 (c) The commission may impose a civil penalty of $10 for each of the first 14 days the statement is late beyond the date set by law and $50 for each day thereafter. The maximum penalty that may be imposed under this subsection is $5,000. [(2)] (3) [The] A civil penalty [referred to in subsection (1) of] imposed under this section may be recovered in an action brought [thereonJ in the name of the State of Oregon in any court of ap- propriate jurisdiction or may be imposed as provided in ORS 183.745. In any proceedings before the court, including judicial review under ORS 183.745, the court may review the penalty as to both li- ability and reasonableness of amount. (4)(a) Except as provided in paragraph (b) of this subsection, the commission shall report, in the manner described in ORS 192.245, to the Legislative Assembly violations of any pro- vision of ORB 171.740 to 171.762, or any rule adopted under ORB 171.725 to 171.785, for which a penalty is imposed under this section. The report shall include the name of the person against whom the penalty was imposed and describe the nature of the violation. (b) The commission shall adopt rules specifying conditions under which repeatEd vio- lations of ORS 171.745 or 171.750 involving a failure to file required statements in a timely fashion are reported to the Legislative Assembly. (5) In lieu of or in conjunction with finding a violation of law or rule or imposing a civil penalty under this section, the commission may issue a written letter of reprimand, expla- nation or education. SECTION 11. ORS 244.350 is amended to read: 244.350. (1) The Oregon Government Standards and Practices Commission or the court under ORS 244.260 (8) may impose civil penalties not to exceed: (a) Except as provided in paragraph (b) of this subsection, [$1,000] $5,000 for [violatingJ vio- lation of any provision of this chapter or any resolution adopted under this chapter. (b) $25,000 for violation of ORS 244.045. (2)(a) Except as provided in paragraph (b) of this subsection, the commission may impose civil penalties not to exceed $1,000 for [violating} violation of any provision of ORS 192.660, [How- ever,] (b) A civil penalty may not be imposed under this subsection if the violation occurred as a re- sult of the governing body of the public body acting upon the advice of the public body's counsel. (3) The commission may impose civil penalties not to exceed $250 for violation of ORS 293.708. A civil penalty imposed under this subsection is in addition to and not in lieu of a civil pen- alty that may be imposed under subsection (1) of this section. (4)(a) The commission may impose civil penalties upon a person who fails to file the statement required under ORS 244.050 or 244.100 or section 35 of this 2007 Act. In enforcing this subsection, the commission is not required to follow the procedures in ORS 244.~mo be- fore finding that a violation of ORB 244.050 or 244.100 or section 35 of this 2007 Act has oc- curred. (b) Failure to file the required statement in timely fashion is prima facie evidenee of a violation of ORS 244.050 or 244.100 or section 35 of this 2007 Act. (c) The commission may impose a civil penalty of $10 for each of the first 14 days the statement is late beyond the date set by law, or by the commission under ORS 244.0S0, and $50 for each day thereafter. The maximum penalty that may be imposed under this sub- section is $5,000. (5) In lieu of or in conjunction with finding a violation of law or any resolution or im- posing a civil penalty under this section, the commission may issue a written letter of reprimand, explanation or education. [(4)J (6) Any penalty imposed under this section is in addition to and not in lieu of any other penalty or sanction that may be imposed according to law, including removal from office. SECTION lla. If House Bill 2595 becomes law, section 11 of this 2007 Act (amending ORB 244.350) is repealed and ORS 244.350, as amended by section 18, chapter _, Oregon Laws 2007 (Enrolled House Bill 2595), is amended to read: Enrolled Senate Bill 10 (SB la-C) Page 11 244.350. (1) The Oregon Government Ethics Commission may impose civil penalties not to ex- ceed: (a) Except as provided in paragraph (b) of this subsection, $5,000 for violation of any provision of this chapter or any resolution adopted under ORS 244.160. (b) $25,000 for violation of ORS 244.045. (2)(a) Except as provided in paragraph (b) of this subsection, the commission may impose civil penalties not to exceed $1,000 for violation of any provision of ORS 192.660. (b) A civil penalty may not be imposed under this subsection if the violation occurred as a result of the governing body of the public body acting upon the advice of the public body's counsel. (3) The commission may impose civil penalties not to exceed $250 for violation of ORS 293.708. A civil penalty imposed under this subsection is in addition to and not in lieu of a civil penalty that may be imposed under subsection (1) of this section. (4)(a) The commission may impose civil penalties on a person who fails to file the statement required under ORS 244.050 or 244.100 or section 35 of this 2007 Act. In enforcing this subsection, the commission is not required to follow the procedures in ORS 244.260 before finding that a vio- lation of ORS 244.050 or 244.100 or section 35 of this 2007 Act has occurred. (b) Failure to file the required statement in timely fashion is prima facie evidence of a violation of ORS 244.050 or 244.100 or section 35 of this 2007 Act. (c) The commission may impose a civil penalty of $10 for each of the first 14 days the statement is late beyond the date set by law, or by the commission under ORS 244.050, and $50 for each day thereafter. The maximum penalty that may be imposed under this subsection is $5,000. (d) A civil penalty imposed under this subsection is in addition to and not in lieu of sanctions that may be imposed under ORS 244.380. (5) In lieu of or in conjunction with finding a violation of law or any resolution or im~ posing a civil penalty under this section, the commission may issue a written letter of reprimand, explanation or education. SECTION 12. ORS 244.360 is amended to read: 244.360. [The Oregon Government Standards and Practices Commission, in addition to civil pen- alties prescribed in ORS 244.350, may require any public official who has financially benefiled the public official or any other person by violation of any provision of this chapter to forfeit twice the amount that the public official or any other person realized from violating any provision of this chap- ter.] In addition to civil penalties imposed under ORB 244.350, if a public official has finaJllcially benefited the public official or any other person by violating any provision of this chapter, the Oregon Government Standards and Practices Commission may impose upon the public official a civil penalty in an amount equal to twice the amount the public official or other person realized as a result of the violation. SECTION 12a. If House Bill 2595 becomes law, section 12 of this 2007 Act (amending ORS 244.360) is repealed and ORS 244.360, as amended by section 19, chapter _, Oregon Laws 2007 (Enrolled House Bill 2595), is amended to read: 244.360. In addition to civil penalties imposed under ORS 244.350, if a public official has finan- cially benefited the public official or any other person by violating any provision of this chapter, the Oregon Government Ethics Commission [or a court] may impose upon the public official a civil penalty in an amount equal to twice the amount the public official or other person realized as a result of the violation. SECTION 13. ORS 244.050 is amended to read: 244.050. (1) On or before April 15 of each year the following persons shall file with the Oregon Government Standards and Practices Commission a verified statement of economic interest as re- quired under this chapter: (a) The Governor, Secretary of State, State Treasurer, Attorney General, Commissioner of the Bureau of Labor and Industries, Superintendent of Public Instruction, district attorneys and mem- bers of the Legislative Assembly. Enrolled Senat€ Bill 10 (SB 10-C) Page 12 (b) Any judicial officer, including justices of the peace and municipal judges, except municipal judges in those cities where a majority of the votes cast in the subject city in the 1974 general election was in opposition to the ballot measure provided for in section 10, chapter 68, Oregon Laws 1974 (special session), and except any pro tem judicial officer who does not otherwise serve as a judicial officer. (c) Any candidate for an office designated in paragraph (a) or (b) of this subsection. (d) The Deputy Attorney General. (e) The Legislative Administrator, the Legislative Counsel, the Legislative Fiscal Officer, the Secretary of the Senate and the Chief Clerk of the House of Representatives. (D The Chancellor and Vice Chancellors of the Oregon University System and the president and vice presidents, or their administrative equivalents, in each institution under the jurisdiction of the State Board of Higher Education. (g) The following state officers: (A) Adjutant General. (B) Director of Agriculture. (C) Manager of State Accident Insurance Fund Corporation. (D) Water Resources Director. (E) Director of Department of Environmental Quality. (F) Director of Oregon Department of Administrative Services. (G) State Fish and Wildlife Director. (H) State Forester. (I) State Geologist. (J) Director of Human Services. (K) Director of the Department of Consumer and Business Services. (L) Director of the Department of State Lands. (M) State Librarian. (N) Administrator of Oregon Liquor Control Commission. (0) Superintendent of State Police. (P) Director of the Public Employees Retirement System. (Q) Director of Department of Revenue. (R) Director of Transportation. (S) Public Utility Commissioner. (T) Director of Veterans' Affairs. (U) Executive Director of Oregon Government Standards and Practices Commission. (V) Director of the State Department of Energy. (W) Director and each assistant director of the Oregon State Lottery. (h) Any assistant in the Governor's office other than personal secretaries and clerical personnel. (i) Every elected city or county official except elected officials in those cities or counties where a majority of votes cast in the subject city or county in any election on the issue of filing statements of economic interest under this chapter was in opposition. (j) Every member of a city or county planning, zoning or development commission except such members in those cities or counties where a majority of votes cast in the subject city or county at any election on the issue of filing statements of economic interest under this chapter was in oppo- sition to the ballot measure provided for in section 10, chapter 68, Oregon Laws 1974 (special ses- sion). (k) The chief executive officer of a city or county who performs the duties of manager or prin- cipal administrator of the city or county except such employees in those cities or counties where a majority of votes cast in the subject city or county in an election on the issue of filing statements of economic interest under this chapter was in opposition. (L) Members of local government boundary commissions formed under ORS 199.410 to 199.519. (m) Every member of a governing body of a metropolitan service district and the executive of- ficer thereof. Enrolled Senate Bill 10 (SB 10-C) Page 13 (n) Each member of the board of directors of the State Accident Insurance Fund Corporation. (0) The chief administrative officer and the financial officer of each common and union high school district, education service district and community college district. (p) Every member of the following state boards and commissions: (A) Board of Geologic and Mineral Industries. (B) Oregon Economic and Community Development Commission. (C) State Board of Education. (D) Environmental Quality Commission. (E) Fish and Wildlife Commission of the State of Oregon. (F) State Board of Forestry. (G) Oregon Government Standards and Practices Commission. (H) Oregon Health Policy Commission. (1) State Board of Higher Education. (J) Oregon Investment Council. (K) Land Conservation and Development Commission. (L) Oregon Liquor Control Commission. (M) Oregon Short Term Fund Board. (N) State Marine Board. (0) Mass transit district boards. (P) Energy Facility Siting Council. (Q) Board of Commissioners of the Port of Portland. (R) Employment Relations Board. (S) Public Employees Retirement Board. (T) Oregon Racing Commission. (U) Oregon Transportation Commission. (V) Wage and Hour Commission. (W) Water Resources Commission. (X) Workers' Compensation Board. (Y) Oregon Facilities Authority. (Z) Oregon State Lottery Commission. (AA) Pacific Northwest Electric Power and Conservation Planning Council. (BB) Columbia River Gorge Commission. (CC) Oregon Health and Science University Board of Directors. (q) The following officers of the State Treasury: (A) Chief Deputy State Treasurer. (B) Executive Assistant to the State Treasurer. (C) Director of the Investment Division. (r) Every member of the board of commissioners of a port governed by ORS 777.005 to 7'77.725 and 777.915 to 777.953. (2) By April 15 next after the date an appointment takes effect, every appointed public official on a board or commission listed in subsection 0) of this section shall file with the Oregon Gov- ernment Standards and Practices Commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090. (3) By April 15 next after the filing deadline for the primary election, each candidate for [elective] public office described in subsection 0) of this section shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090. (4) Within 30 days after the filing deadline for the general election, each candidate for [elective] public office described in subsection 0) of this section who was not a candidate in the preceding primary election, or who was nominated for lelectiveJ public office described in subsection (1) of this section at the preceding primary election by write-in votes, shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090. Enrolled Senate Bill 10 (SB lO~C) Page 14 [(5) The Legislative Assembly shall maintain a continuing review of the operation of this chapter.} [(6)J (5) Subsections (1) to [(5)] (4) of this section apply only to persons who are incumbent, elected or appointed officials as of April 15 and to persons who are candidates for office on April 15. Those [sections] subsections also apply to persons who do not become candidates until 30 days after the filing deadline for the statewide general election. [(7)(a)J (6) [Failure to file the statement required by this section subjects a person to a civil penalty that may be imposed as specified in ORS 183.745, but the enforcement of this subsection does not re- quire the Oregon Government Standards and Practices Commission to follow the procedures in ORS 244.260 before finding that a violation of this section has occurred.} [(b) Failure to file the required statement in timely fashion shall be prima facie evidence of a vio- lation of this section.] [(c) If within five days after the date on which the statement is to be filed under this section the statement has not been received by the commission,] If a statement required to be filed undt~r this section has not been received by the commission within five days after the date the state- ment is due, the commission shall notify the public official or candidate and give the public official or candidate not less than 15 days to comply with the requirements of this section. If the public official or candidate fails to comply by the date set by the commission, the commission may impose a civil penalty [of $5 for each day the statement is late beyond the date fixed by the commission. The maximum penalty that may be accrued under this section is $1,000] as provided in ORB 244.3IiO. [(d) A civil penalty imposed under this subsection is in addition to and not in lieu of sanctions that may be imposed under ORS 244.380.] SECTION 14. ORS 260.407 is amended to read: 260.407. (1) Except as provided in subsection (2) of this section, amounts received as contrib- utions by a candidate or the principal campaign committee of a candidate for public office that are in excess of any amount necessary to defray campaign expenditures and any other funds donated to a holder of public office may be: (a) Used to defray any expenses incurred in connection with the recipient's duties as a holder of public office; (b) Transferred to any national, state or local political committee of any political party; (c) Contributed to any organization described in section 170(c) of Title 26 of the United States Code or to any charitable corporation defined in ORS 128.620; or (d) Used for any other lawful purpose. (2) Notwithstanding subsection (1) of this section, amounts received as contributions by a can- didate for public office that are in excess of any amount necessary to defray campaign expenditures and other funds donated to a holder of public office [shall] may not be: (a) Converted by any person to any personal use other than to defray any expenses incurred in connection with the person's duties as a holder of public office or to repay to a candidate any loan the proceeds of which were used in connection with the candidate's campaign; (b) Except as provided in this paragraph, used to pay any money award as defined i.n ORS 18.005 included as part of a judgment in a civil or criminal action or any civil penalty imposed by an agency as defined in ORS 183.310 or by a local government as defined in ORB 174.116. Contributions described in this subsection may be used to pay a civil penalty imposed under this chapter, other than a civil penalty imposed for a violation of this section or ORS 260.409; or (c) Except as provided in this paragraph, used to pay any legal expenses incurred by the candidate or public official in any civil, criminal or other legal proceeding or investigation that relates to or arises from the course and scope of the duties of the person as a candidate or public official. Contributions described in this subsection may be used to pay legal ex- penses incurred by the candidate or public official in connection with a legal proceeding brought under this chapter, other than a proceeding brought under this section or ORS 260.409. Enrolled Senate Bill 10 (SB 10-C) Page 15 (3) As used in this section: (a) "Funds donated" means all funds, including but not limited to gifts, loans, advances, credits or deposits of money that are donated for the purpose of supporting the activities of a holder of public office. "Funds donated" does not mean funds appropriated by the Legislative Assembly or another similar public appropriating body or personal funds of the office holder donated to an ac- count containing only those personal funds. (b) "Public office" does not include national or political party office. SUBSEQUENT EMPLOYMENT SECTION 15. ORS 244.045 is amended to read: 244.045. (1) A person who has been a Public Utility Commissioner, the Director of the Depart- ment of Consumer and Business Services, the Administrator of the Division of Finance and Corpo- rate Securities, the Administrator of the Insurance Division, the Administrator of the Oregon Liquor Control Commission or the Director of the Oregon State Lottery shall not: (a) Within one year after the public official ceases to hold the position become an employee of or receive any financial gain, other than reimbursement of expenses, from any private employer engaged in the activity, occupation or industry over which the former public official had authority; or (b) Within two years after the public official ceases to hold the position: (A) Be a lobbyist for or appear as a representative before the agency over which the person exercised authority as a public official; (B) Influence or try to influence the actions of the agency; or (C) Disclose any confidential information gained as a public official. (2) A person who has been a Deputy Attorney General or an assistant attorney general shall not, within two years after the person ceases to hold the position, lobby or appear before an agency that the person represented while employed by the Department of Justice. (3) A person who has been the State Treasurer or the Chief Deputy State Treasurer shall not, within one year after ceasing to hold office: (a) Accept employment from or be retained by any private entity with whom the office of the State Treasurer or the Oregon Investment Council negotiated or to whom either awarded a contract providing for payment by the state of at least $25,000 in any single year during the term of office of the treasurer; (b) Accept employment from or be retained by any private entity with whom the office of the State Treasurer or the Oregon Investment Council placed at least $50,000 of investment moneys in any single year during the term of office of the treasurer; or (c) Be a lobbyist for an investment institution, manager or consultant, or appear before the of- fice of the State Treasurer or Oregon Investment Council as a representative of an investment inM stitution, manager or consultant. (4) A public official who as part of the official's duties invested public funds shall not within two years after the public official ceases to hold the position: (a) Be a lobbyist or appear as a representative before the agency, board or commission for which the former public official invested public funds; (b) Influence or try to influence the agency, board or commission; or (c) Disclose any confidential information gained as a public official. (5)(a) A person who has been a member of the Department of State Police, who has held a po- sition with the department with the responsibility for supervising, directing or administering pro- grams relating to gaming by a Native American tribe or the Oregon State Lottery and who has been designated by the Superintendent of State Police by rule shall not, within one year after the member of the Department of State Police ceases to hold the position: (A) Accept employment from or be retained by or receive any financial gain related to gaming from the Oregon State Lottery or any Native American tribe; Enrolled Senate Bill 10 (SB 10-C) Page 16 (B) Accept employment from or be retained by or receive any financial gain from any private employer selling or offering to sell gaming products or services; (C) Influence or try to influence the actions of the Department of State Police; or (D) Disclose any confidential information gained as a member of the Department of State Police. (b) This subsection does not apply to: (A) Appointment or employment of a person as an Oregon State Lottery Commissioner or as a Tribal Gaming Commissioner or regulatory agent thereof; (B) Contracting with the Oregon State Lottery as a lottery game retailer; (C) Financial gain received from personal gaming activities conducted as a private citizen; or (D) Subsequent employment in any capacity by the Department of State Police. (c) As used in this subsection, "Native American tribe" means any recognized Native American tribe or band of tribes authorized by the Indian Gaming Regulatory Act of October 17, 1988 (Public Law 100-497), 25 V.S.C. 2701 et seq., to conduct gambling operations on tribal land. (6) A person who has been a member of the Legislative Assembly may not receive money or any other consideration for lobbying as defined in ORB 171.725 perfonned during the pe- riod beginning on the date the person ceases to be a member of the Legislative Assembly and ending on the date of adjournment sine die of the next regular session of the Legislative Assembly that begins after the date the person ceases to be a member of the Legislative Assembly. SECTION I5a. Section I5b of this 2007 Act is added to and made a part of ORS chapter 244. SECTION I5b. (1) For purposes of ORS 244.045 (6), if a special session of the Legislative Assembly is held in calendar year 2008 or 2010, the first special session held in that calendar year is considered a regular session of the Legislative Assembly. (2) This section is repealed January 1, 2011. GIFTS/FINANCIAL GAIN SECTION 16. ORS 244.020 is amended to read: 244.020. As used in this chapter, unless the context requires otherwise: (1) "Actual conflict of interest" means any action or any decision or recommendation by a per- son acting in a capacity as a public official, the effect of which would be to the private pecuniary benefit or detriment of the person or the person's relative or any business with which the person or a relative of the person is associated unless the pecuniary benefit or detriment arises out of circumstances described in subsection [(14)] (11) of this section. (2) "Business" means any corporation, partnership, proprietorship, firm, enterprise, franchise, association, organization, self-employed individual and any other legal entity operated for economic gain but excluding any income-producing not-for-profit corporation that is tax exempt under section 501(c) of the Internal Revenue Code with which a public official or a relative of the public official is associated only as a member or board director or in a nonremunerative capacity. (3) "Business with which the person is associated" means: (a) Any private business or closely held corporation of which the person or the person's relative is a director, officer, owner or employee, or agent or any private business or closely held corpo. ration in which the person or the person's relative owns or has owned stock, another form of equity interest, stock options or debt instruments worth $1,000 or more at any point in the preceding cal- endar year; (b) Any publicly held corporation in which the person owned $100,000 or more in stock or another form of equity ments at any point in the preceding calendar year; (c) Any publicly held corporation of which the person or the person's relative is a director or officer; or or the person's relative owns interest, stock options or debt or has instru- Enrolled Senate Bill 10 (SB 10-C) Page 17 (d) For public officials required to file a statement of economic interest under ORS 244.060, any business [from which 50 percent or more of the total annual income of the person and members of the person's household is derived during the current calendar year] listed as a source of income as required under ORB 244.060 (3). [(4) "Commission" means the Oregon Government Standards and Practices Commission.] l(5)] (4) "Development commission" means any entity which has the authority to purchase, de~ velop, improve or lease land or the authority to operate or direct the use of land. This authority must be more than ministerial. [(6) "Expenditure" has the meaning given that term in ORS 260.005.] [(7)] (5)(a) "Gift" means something of economic value given to a public official or [the public official's] a relative or member of the household of the public official: (A) Without valuable consideration of equivalent value, including the full or partial forgiveness of indebtedness, which is not extended to others who are not public officials or the relatives or members of the household of public officials on the same terms and conditions; or [and something of economic value given to a public official or the public official's relative] (B) For valuable consideration less than that required from others who are not public officials. [However, "gift" does not mean:] (b) "Gift" does not mean: [(a) Campaign contributions, as described in ORB chapter 260.] (A) Contributions as defined in ORB 260.005. [(b)] (B) Gifts from [family members] relatives or members of the household of the public official. (C) An unsolicited token or award of appreciation in the form of a plaque, trophy, desk item, wall memento or similar item, with a resale value reasonably expected to be less than $25. (D) Informational material, publications or subscriptions related to the recipient's per- formance of official duties. (E) Admission provided to or the cost of food or beverage consumed by a public official, or a member of the household or staff of the public official when accompanying the public official, at a reception, meal or meeting held by an organization before whom the public of- ficial appears to speak or to answer questions as part of a scheduled program. (F) Reasonable expenses paid by any unit of the federal government, a state OJ. local government, a Native American Tribe that is recognized by federal law or formallly ac- knowledged by a state, a membership organization to which a public body as defined in ORS 174.109 pays membership dues or a not-for-profit corporation that is tax exempt und4~r sec- tion 501(c)(3) of the Intental Revenue Code and that receives less than five percent of its funding from for-profit organizations or entities, for attendance at a convention, fact-finding mission or trip, or other meeting if the public official is scheduled to deliver a speech,. make a presentation, participate on a panel or represent state government as defined in ORS 174.111, a local govermnent as defined in ORS 174.116 or a special govermnent body a defined in ORB 174.117. (G) Contributions made to a legal expense trust fund established under section 31 of this 2007 Act for the benefit of the public official. (H) Reasonable food, travel or lodging expenses provided to a public official, a rl~lative of the public official accompanying the public official, a member of the household of the public official accompanying the public official or a staff member of the public official ac- companying the public official, when the public official is representing state government as defined in ORS 174.111, a local govermnent as defined in ORS 174.116 or a special government body as defined in ORS 174.117: (i) On an officially sanctioned trade-promotion or fact-finding mission; or (ii) In officially designated negotiations, or economic development activities, whE~re re- ceipt of the expenses is approved in advance. Enrolled Senate Bill 10 (SB la-C) Page 18 (I) Food or beverage consumed by a public official acting in an official capacity: (i) In association with the review, approval, execution of documents or closing of a bor- rowing, investment or other financial transaction, including any business agreement bE~tween state government as defined in ORS 174.111, a local government as defined in ORS ll74.116 or a special government body as defined in ORS 174.117 and a private entity or publi,~ body as defined in ORS 174.109; (ii) While engaged in due diligence research or presentations by the office of the State Treasurer related to an existing or proposed investment or borrowing; or (iii) While engaged in a meeting of an advisory, governance or policy-making bodly of a corporation, partnership or other entity in which the office of the State Treasurer has in- vested moneys. (J) Waiver or discount of registration expenses or materials provided to a public official at a continuing education event that the public official may attend to satisfy a professional licensing requirement. (K) Expenses provided by one public official to another public official for travel inside this state to or from an event that bears a relationship to the receiving public official's offi,ce and at which the official participates in an official capacity. (L) Food or beverage consumed by a public official at a reception where the food or beverage is provided as an incidental part of the reception and no cost is placed on the food or beverage. (M) Entertainment provided to a public official or a relative or member of the household of the public official that is incidental to the main purpose of another event. (N) Entertainment provided to a public official or a relative or member of the household of the public official where the public official is acting in an official capacity while repres- enting state government as defined in ORS 174.111, a local government as defined in ORS 174.116 or a special government body as dermed in ORS 174.117 for a ceremonial purpose. [(e) The giving or receiving of food, lodging and travel when participating in an event which bears a relationship to the public official's office and when appearing in an official capacity, subject to the reporting requirement of ORS 244.060 (6).] L(d) The giving or receiving of food or beverage if the food or beverage is consumed by the public official or the public official's relatives in the presence of the purchaser or provider thereof.] [(e) The giving or receiving of entertainment if the entertainment is experienced by the public offi- cial or the public official's relatives in the presence of the purchaser or provider thereof and the value of the entertainment does not exceed $100 per person on a single occasion and is not greater than $250 in anyone calendar year.] [(8)] (6) ["Honoraria"] "Honorarium" means a payment or something of economic value given to a public official in exchange for services upon which custom or propriety prevents the setting of a price. Services include, but are not limited to, speeches or other services rendered in connection with an event [at which the public official appears in an official capacity]. [(9jJ (7) "Income" means income of any nature derived from any source, including, but not lim- ited to, any salary, wage, advance, payment, dividend, interest, rent, lhonoraria] honorarium, return of capital, forgiveness of indebtedness, or anything of economic value. [(10)] (8) "Legislative or administrative interest" means an economic interest, distinct from that of the general public, in one or more bills, resolutions, regulations, proposals or other matters sub- ject to the action or vote of a person acting in the capacity of a public official. [(11) "Legislative official" means any member or member-elect of the Legislative Assembly, any member of an agency, board or committee that is part of the legislative branch and any staff person, assistant or employee thereof.] [(12) "Member of household" means any relative who resides with the public official.] (9) "Member of the household" means any person who resides with the public offidal. [(13)] (10) "Planning commission" means a county planning commission created under ORS chapter 215 or a city planning commission created under ORS chapter 227. Enrolled Senate Bill 10 (SB lO-C) Page 19 [(14)] (11) "Potential conflict of interest" mcans any action or any decision or recommendation by a person acting in a capacity as a public official, the effect of which could be to the private pecuniary benefit or detriment of the person or the person's relative, or a business with which the person or the person's relative is associated, unless the pecuniary benefit or detriment anses out of the following: (a) An interest or membership in a particular business, industry, occupation or other dass re- quired by law as a prerequisite to the holding by the person of the office or position. (b) Any action in the person's official capacity which would affect to the same degree a class consisting of all inhabitants of the state, or a smaller class consisting of an industry, occupation or other group including one of which or in which the person, or the person's relative or husiness with which the person or the person's relative is associated, is a member or is engaged. The Oregon Government Standards and Practices Commission may by rule limit the minimum size of or oth- erwise establish criteria for or identify the smaller classes that qualify under this exception. (c) Membership in or membership on the board of directors of a nonprofit corporation that is tax-exempt under section 501(c) of the Internal Revenue Code. (12) "Public office" has the meaning given that term in ORS 260.005. [(15)] (13) "Public official" means any person who, when an alleged violation of this chapter occurs, is serving the State of Oregon or any of its political subdivisions or any other public body [of the state] as defined in ORS 174.109 as an [officer] elected official, appointed official, employee, agent or otherwise, [andJ irrespective of whether the person is compensated for [such] th" services. [(16)J (14) "Relative" means: [the spouse of the public official, any children of the public official or of the public official's spouse, and brothers, sisters or parents of the public official or of the public official's spouse.] (a) The spouse of the public official; (b) The domestic partner of the public official; (c) Any children of the public official or of the public official's spouse; (d) Siblings, spouses of siblings or parents of the public official or of the public: official's spouse; (e) Any individual for whom the public official has a legal support obligation; or (f) Any individual for whom the public official provides benefits arising from the public official's public employment or from whom the public official receives benefits arising from that individual's employment. [(17)] (15) "Statement of economic interest" means a statement as described by OR". 244.060 to 244.080 or 244.100. ((18) "Statewide official" means the Secretary of State or Secretary of State-elect, State Treasurer or State Treasurer-elect, Superintendent of Public Instruction or Superintendent-elect or Public In- struction, Attorney General or Attorney General-elect and the Commissioner of the Bureau of Labor and Industries or the Commissioner-elect of the Bureau of Labor and Industries.] [(19)] (16) "Zoning commission" means an entity to which is delegated at least some of the dis- cretionary authority of a planning commission or governing body relating to zoning and land use matters. SECTION 16a. If House Bill 2595 becomes law, section 16 of this 2007 Act (am.ending ORS 244.020) is repealed and ORS 244.020, as amended by section 8, chapter ~ Oregon Laws 2007 (Enrolled House Bill 2595), is amended to read: 244.020. As used in this chapter, unless the context requires otherwise: (1) "Actual conflict of interest" means any action or any decision or recommendation by a per- son acting in a capacity as a public official, the effect of which would be to the private pecuniary benefit or detriment of the person or the person's relative or any business with which the person or a relative of the person is associated unless the pecuniary benefit or detriment arises out of circumstances described in subsection [(14)) (11) of this section. (2) "Business" means any corporation, partnership, proprietorship, firm, enterpnse, franchise, association, organization, self-employed individual and any other legal entity operated for economic Page 20 Enrolled Senate Bill 10 (SB lO-C) gain but excluding any income-producing not-for-profit corporation that is tax exempt under section 501(c) of the Internal Revenue Code with wbich a public official or a relative of the public official is associated only as a member or board director or in a nonremunerative capacity. (3) "Business with which the person is associated" means: Cal Any private business or closely held corporation of which the person or the person's relative is a director, officer, owner or employee, or agent or any private business or closely held corpo- ration in which the person or the person's relative owns or has owned stock, another form of equity interest, stock options or debt instruments worth $1,000 or more at any point in the precedmg cal- endar year; Cb) Any publicly held corporation in which the person or the person's relative owns or has owned $100,000 or more in stock or another form of equity interest, stock options or debt instru- ments at any point in the preceding calendar year; (cl Any publicly held corporation of which the person or the person's relative is a director or officer; or Cdl For public officials required to file a statement of economic interest under ORS 244.1)50, any business [from which 50 percent or more of the total annual income of the person and members of the person's household is derived during the current calendar year] listed as a souree of income as required uoder ORB 244.060 (31. [(4) "Commission" means the Oregon Government Ethics Commission.} [(5)] (4) "Development commission" means any entity which has the authority to purchase, de- velop, improve or lease land or the authority to operate or direct the use of land. This authority must be more than ministerial. [(6) "Expenditure" has the meaning given that term in ORB 260.005.1 l(7)J (5)(a) "Gift" means something of economic value given to a public official or lthe public official's] a relative or member of the household of the public official: (A) Without valuable consideration of equivalent value, including the full or partial forgiveness of indebtedness, which is not extended to others who are not public officials or the relatives or members of the household of public officials on the same terms and conditions; or land something of economic value given to a public official or the public official's relative] (Bl For valuable consideration less than that required from others who are not public officials. (However, "gift" does not mean:] (b) "Gift" does not mean: ((a) Campaign contributions, as described in ORS chapter 260.] (Al Contributions as defined in ORB 260.005. lib)) (Bl Gifts from [family members.! relatives or members of the household of the public official. (el An unsolicited token or award of appreciation in the form of a plaque, trophy, desk item, wall memento or similar item, with a resale value reasonably expected to b.. less than $25. (D) Informational material, publications or subscriptions related to the recipient's per- formance of official duties. (El Admission provided to or the cost of food or beverage consumed by a public official, or a member of the household or staff of the public official when accompanying the public official, at a reception, meal or meeting held by an organization before whom the public of. ficial appears to speak or to answer questions as part of a scheduled program. (F) Reasonable expenses paid by any uoit of the federal government, a state or local government, a Native American Tribe that is recognized by federal law or formally ac- knowledged by a state, a membership organization to which a public body as defilned in ORB 174.109 pays membership dues or a not.for-profit corporation that is tax exempt under sec- tion 50](c}(3) of the Internal Revenue Code and that receives less than five p..rcent of its fuoding from for.profit organizations or entities, for attendance at a convention, fact-finding mission or trip, or other meeting if the public official is scheduled to deliver a speech, make Page 21 Enrolled Senate Bill 10 (SB IO-C) a presentation, participate on a panel or represent state government as defined in ORB 174.111, a local government as defined in ORS 174.116 or a special government body as defined in ORB 174.117. (G) Contributions made to a legal expense trust fund established under section 31 of this 2007 Act for the benefit of the public official. (H) Reasonable food, travel or lodging expenses provided to a public official, a relative of the public official accompanying the public official, a member of the household of the public official accompanying the public official or a staff member of the public official ac- companying the public official, when the public official is representing state goVernBlent as defined in ORB 174.111, a local government as dermed in ORS 174.116 or a special goveJrnment body as defined in ORS 174.117: (i) On an officially sanctioned trade-promotion or fact-finding mission; or (ii) In officially designated negotiations, or economic development activities, where re- ceipt of the expenses is approved in advance. (I) Food or beverage consumed by a public official acting in an official capacity: (i) In association with the review, approval, execution of documents or closing of a bor- rowing, investment or other imancial transaction, including any business agreement between state government as defined in ORS 174.111, a local government as defined in ORS 174.116 or a special government body as defiued in ORB 174.117 and a private entity or public body as def'med in ORB 174.109; (ii) While engaged in due diligence research or presentations by the office of the State Treasurer related to an existing or proposed investment or borrowing; or (iiil While engaged in a meeting of an advisory, governance or policy-making body of a corporation, partnership or other entity in which the office of the State Treasure" has in- vested moneys. (J) Waiver or discount of registration expenses or materials provided to a public official at a continuing education event that the public official may attend to satisfy a professional licensing requirement. (K) Expenses provided by one public official to another public official for travel ililside this state to or from an event that bears a relationship to the receiving public official's office and at which the official participates in an official capacity. (L) Food or beverage consumed by a public official at a reception where thle food or beverage is provided as an incidental part of the reception and no cost is placed on the food or beverage. (M) Entertainment provided to a public official or a relative or member of the bousehold of the public official that is incidental to the main purpose of another event. (N) Entertainment provided to a public official or a relative or member of the household of the public official where the public official is acting in an official capacity while repres- euting state government as defined in ORS 174.111, a local government as defin.,d in ORB 174.116 or a special government body as dermed in ORS 174.117 for a ceremonial purpose. [(c) The giving or receiving of food, lodging and travel when participating in an event which bears a relationship to the public official's office and when appearing in an official capacity, subject to the reporting requirement of ORS 244.060 (6).] [(d) The giving or receiving of food or beverage if the food or beverage is consumed by the public official or the public official's relatives in the presence of the purchaser or provider thereof] [(e) The giving or receiving of entertainment if the entertainment is experienced by the public offi. cial or the public official's relatives in the presence of the purchaser or provider thereof and the value of the entertainment does not exceed $100 per person on a single occasion and is not greater than $250 in anyone calendar year.] [(8)] (6) ["Honoraria"] "Honorarium" means a payment or something of economic value given to a public official in exchange for services upon which custom or propriety prevents the setting Page 22 Enrolled Senate Bill 10 (SB 10-C) of a price. Services include, but are not limited to, speeches or other services rendered in connection with an event [at which the public official appears in an official capacity]. [(9)] (7) "Income" means income of any nature derived from any source, including, but not lim- ited to, any salary, wage, advance, payment, dividend, interest, rent, [honoraria] honorarium, return of capital, forgiveness of indebtedness, or anything of economic value. [(10)] (8) "Legislative or administrative interest" means an economic interest, distinct from that of the general public, in one or more bills, resolutions, regulations, proposals or other matters sub- ject to the action or vote of a person acting in the capacity of a public official. [(11) "Legislative official" means any member or member-elect of the Legislative Assembly, any member of an agency, board or committee that is part of the legislative branch and any staff person, assistant or employee thereof.} [(12) "Member of household" means any relative who resides with the public official.] (9) "Member of the household" means any person who resides with the public offidal. [(13)] (10) "Planning commission" means a county planning commission created under ORS chapter 215 or a city planning commission created under ORS chapter 227. [(14)] (11) "Potential conflict of interest" means any action or any decision or recommendation by a person acting in a capacity as a public official, the effect of which could be to the private pecuniary benefit or detriment of the person or the person's relative, or a business with which the person or the person's relative is associated, unless the pecuniary benefit or detriment arises out of the following: (a) An interest or membership in a particular business, industry, occupation or other class re- quired by law as a prerequisite to the holding by the person of the office or position. (b) Any action in the person's official capacity which would affect to the same degree a class consisting of all inhabitants of the state, or a smaller class consisting of an industry, occupation or other group including one of which or in which the person, or the person's relative or business with which the person or the person's relative is associated, is a member or is engaged. (c) Membership in or membership on the board of directors of a nonprofit corporation that is tax-exempt under section 501(c) of the Internal Revenue Code. (12) "Public office" has the meaning given that term in ORS 260.005. [(15)) (13) "Public official" means any person who, when an alleged violation of this chapter occurs, is serving the State of Oregon or any of its political subdivisions or any other public body [of the state) as defined in ORS 174.109 as an [officer] elected official, appointed official, employee, agent or otherwise, [and] irrespective of whether the person is compensated for [such} the services. [(16)) (14) "Relative" means [the spouse of the public official, any children of the public official or of the public official's spouse, and brothers, sisters or parents of the public official or of the public official's spouse.]: (a) The spouse of the public official; (b) The domestic partner of the public official; (c) Any children of the public official or of the public official's spouse; (d) Siblings, spouses of siblings or parents of the public official or of the public official's spouse; (e) Any individual for whom the public official has a legal support obligation; or (f) Any individual for whom the public official provides benefits arising from the public official's public employment or from whom the public official receives benefits arising from that individual's employment. [(17)} (15) "Statement of economic interest" means a statement as described by ORS 244.060 to 244.080 or 244.100. [(18) "Statewide official" means the Secretary of State or Secretary of State-elect, State Treasurer or State Treasurer-elect, Superintendent of Public Instruction or Superintendent-elect of Public In- struction, Attorney General or Attorney General-elect and the Commissioner of the Bureau of Labor and Industries or the Commissioner-elect of the Bureau of Labor and Industries.] Page 23 Enrolled Senate Bill 10 (SB lO-C) [(19)} (16) "Zoning commission" means an entity to which is delegated at least some of the dis- cretionary authority of a planning commission or governing body relating to zoning and land use matters. SECTION 17. ORS 244.040 is amended to read; 244.040. [The following actions are prohibited regardless of whether actual confIicts of interest or potential confIicts of interest are announced or disclosed pursuant to ORS 244.120:) l(1)(a)) (1) [No] Except as provided in subsection (2) of this section, a public official [shall] may not use or attempt to use official position or office to obtain financial gain or avoidance of financial detriment [that would not otherwise be available but for the public official's holding of the official position or office, other than official salary, honoraria, except as prohibited in paragraphs (b) and (c) of this subsection, reimbursement of expenses or an unsolicited award for professional achievement for the public official or the public official's relative, or for] for the public official, a relative or member of the household of the public official, or any business with which the public official or a relative or member of the household of the public official is associated, if the fi- nancial gain or avoidance of financial detriment would not otherwise be available but for the public official's holding of the official position or office. (2) Subsection (1) of this section does not apply to: (a) Any part of an official compensation package as determined by the public body that the public official serves. (b) The receipt by a public official or a relative or member of the household of th{~ public official of an honorarium or any other item allowed under section 24 of this 2007 Act.. (c) Reimbursement of expenses. (d) An unsolicited award for professional achievement. (e) Gifts that do not exceed the limits specified in section 18 of this 2007 Act recdved by a public official or a relative or member of the household of the public official from a source that could reasonably be known to have a legislative or administrative interest in a govern- mental agency in which the official holds any official position or over which the official ex~ ercises any authority. (f) Gifts received by a public official or a relative or member of the householll of the public official from a source that could not reasonably be known to have a legislative or ad- ministrative interest in a governmental agency in which the official holds any official posi- tion or over which the official exercises any authority. (g) The receipt by a public official or a relative or member of the household of the public official of any item, regardless of value, that is expressly excluded from the definition of "gift" in ORS 244.020. (h) Contributions made to a legal expense trust fund established under section 81 of this 2007 Act for the benefit of the public official. [(b) No statewide official shall solicit or receive, whether directly or indirectly, honoraria for the statewide official or for any member of the household of the official. No candidate for statewide office shall solicit or receive, whether directly or indirectly, honoraria for the candidate or for any member of the household of the candidate.] [(c) No legislative official shall solicit or receive, whether directly or indirectly, honoraria in an amount in excess of $1,500 or in any amount for an appearance within the state or for an appearance during a legislative session, regardless of location, for the legislative official or for any member of the household of the official, except that a legislative official may solicit or receive honoraria ~')r services performed in relation to the private profession or occupation of the legislative official. No candidate for legislative office shall solicit or receive, whether directly or indirectly, honoraria in an amount in excess of $1,500 or in any amount for an appearance within the state for the candidate or for any member of the household of the candidate, except that a candidate for legislative office may solicit or receive honoraria for services performed in relation to the private profession or occupation of the leg- islative official.} Page 24 Enrolled Senate Bill 10 (SB la-C) [(d) Any public official not described in paragraph (b) or (c) of this subsection or a member of the public official's household may receive honoraria.] [(2) No public official or candidate for office or a relative of the public official or candidate shall solicit or receive, whether directly or indirectly, during any calendar year, any gift or gifts with an aggregate value in excess of $100 from any single source who could reasonably be known to have a legislative or administrative interest in any governmental agency in which the official has or the can- didate if elected would have any official position or over which the official exercises or the candidate if elected would exercise any authority.] (3) [No] A public official [shall] may not solicit or receive, either directly or indirectly, and [no] a person [shaUl may not offer or give to any public official any pledge or promise of future employment, based on any understanding that [such public official's] the vote, official action or judgment of the public official would be influenced lthereby] by the pledge or promise. (4) [No] A public official lshall] may not attempt to further or further the personal gain of the public official through the use of confidential information gained in the course of or by reason of lihe official position] holding position as a public official or activities of the public official [in any way]. [(5) No person shall offer during any calendar year any gifts with an aggregate value in excess of $100 to any public official or candidate therefor or a relative of the public official or candidate if the person has a legislative or administrative interest in a governmental agency in which the official has or the candidate if elected would have any official position or over which the official exerci8es or the candidate if elected would exercise any authority.J (5) A person who has ceased to be a public official may not attempt to further or fwrther the personal gain of any person through the use of confidential infonnation gained in the course of or by reason of holding position as a public official or the activities of the pE!rson as a public official. (6) [No person shall] A person may not attempt to represent or represent a client for a fee before the governing body of a public body of which the person is a member. This subsection does not apply to the person's employer, business partner or other associate. (7) The provisions of this section apply regardless of whether actual conflicts of int.erest or potential conflicts of interest are announced or disclosed under ORS 244.120. SECTION 18. (1) During a calendar year, a public official, a candidate for public office or a relative or member of the household of the public official or candidate may not solicit or receive, directly or indirectly, any gift or gifts with an aggregate value in excess of $50 from any single source that could reasonably be known to have a legislative or administra- tive interest in any governmental agency in which the public official holds, or the candidate if elected would hold, any official position or over which the public official exercises, or the candidate if elected would exercise, any authority. (2) During a calendar year, a person who has a legislative or administrative interest in any governmental agency in which a public official holds any official position or over which the public official exercises any authority may not offer to the public official or a relative or member of the household of the public official any gift or gifts with an aggregate value in excess of $50. (3) During a calendar year, a person who has a legislative or administrative interest in any governmental agency in which a candidate for public office if elected would hold any of- ficial position or over which the candidate if elected would exercise any authority may not offer to the candidate or a relative or member of the household of the candidate any gift or gifts with an aggregate value in excess of $50. (4) Notwithstanding subsection (1) of this section: (a) A public official, a candidate for public office or a relative or member of the household of the public official or candidate may not solicit or receive, directly or indirectly, any gift of payment of expenses for entertainment from any single source that could reasonably be known to have a legislative or administrative interest in any governmental agency in which Enrolled Senate Bill 10 (SB 10-C) Page 25 the public official holds, or the candidate if elected would hold, any official position OJ:' over which the public official exercises, or the candidate if elected would exercise, any authority. (b) A person who has a legislative or administrative interest in any governmental agency in which a public official holds any official position or over which the public official exercises any authority may not offer to the public official or a relative or member of the household of the public official any gift of payment of expenses for entertainment. (c) A person who has a legislative or administrative interest in any governmental agency in which a candidate for public office if elected would hold any official position or over which the candidate if elected would exercise any authority may not offer to the candidate or a relative or member of the household of the candidate any gift of payment of expenses for entertainment. (5) This section does not apply to public officials subject to the Oregon Code of J'Lldicial Conduct. SECTION 19. ORS 244.060 is amended to read; 244.060. The statement of economic interest filed under ORB 244.0501,] shall be on a form pre- scribed by the Oregon Government Standards and Practices Commissionl, and]. The [person] public official or candidate for public office filing the statement shall supply the information required by this section and ORS 244.090, as follows: (1) The [namel names of all positions as officer of a business and business directorships held by the person or a member of the household of the person during the preceding calendar year, and the principal address and a brief description of each business. (2) All names under which the person and members of the household of the person do business and the principal address and a brief description of each business. (3) The names, principal addresses and brief descriptions of the five most significant sources of income received at any time during the preceding calendar year by the person [or a] and by each member of the household of the person lthat produce 10 percent or more of the total annual household income], a description of the type of income and the name of the person rE~ceiving the income. [(4) The name, principal address and brief description of the source of income from which 50 per- cent or more of the total annual income of the person and members of the household of the person was received during the preceding calendar year and whether the source existed during the precedi~ng year, and whether the source is derived from an entity that now does business or could reasonably be ex- pected to do business or has legislative or administrative interest in the governmental agency of which the public official is or the candidate if elected would be a member or over which the public official has or the candidate if elected would have authority.l [(5)(a)] (4)(a) [The listing] A list of all real property in which the public official or candidate [therefor] for public office or a member of the household of the public official or candidate has or has had any personal, beneficial ownership interest during the preceding calendar year, any options to purchase or sell real property, including a land sales contract, and any other rights of any kind in real property located within the geographic boundaries of the governmental agency of which the public official lis] holds, or the candidate if elected would [be a member} hold, any official position or over which the public official [has] exercises, or the candidate if elected would [have] ,exercise, any authority. (b) This subsection does not require the listing of the principal residence of the public official or candidate. (5) The name of each member of the household of the person who is 18 years of age or older. (6) The name of each relative of the person who is 18 years of age or older and not a member of the household of the person. [(6)(a) Notwithstanding ORS 244.020 (7)(c), if a public official has received food, lodging and pay- ment of travel expenses exceeding $100 when participating in an event which bears a relationship to Enrolled Senate Bill 10 (SB lO-C) Page 26 the public official's office and when appearing in an official capacity, the name, nature and business address of the organization paying the expenses and the date and amount of that expenditure.] l(b) Beginning on July 1, 1992, the dollar amount specified in paragraph (a) of this subsection shall be adjusted annually by the commission based upon the change in the Portland Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor or its successor during the preceding 12-month period. The amount deter- mined under this paragraph shall be rounded to the nearest dollar.] [(7) Any honoraria exceeding $50 received during the preceding calendar year by the person or a member of the household of the person, the payer of the honoraria and the date and time of the event for which the honoraria was received.] SECTION 20. ORB 244.070 is amended to read; 244.070. A public official or candidate for public office shall report the following additional economic interest [shall be reported] for the preceding calendar year only if the source of that in- terest is derived from an individual or business lwhichl that has been doing business, does business or could reasonably be expected to do business with, or has legislative or administrative interest in, the governmental agency of which the public official [is] holds, or the candidate if elected would lbe a member] hold, any official position or over which the public official [has] exercises, or the candidate if elected would [have] exercise, any authority: [(1) Each source of income over $1,000, other than a source of income disclosed under ORS 244.060, whether or not taxable, received by the public official or candidate therefor or a member of the house- hold of the public official or candidate.] [(2)] (1) Each person to whom the public official or candidate [therefor] for public office or a member of the household of the public official or candidate owes or has owed money in excess of $1,000, the interest rate [thereon] on money owed and the date of the loan, except for debts owed to any federal or state regulated financial institution or retail contracts. [(3)] (2) [Each business] The name, principal addressl,] and brief description of [its] the natureLI of each business in which the public official or candidate [therefor] for public office or a member of the household of the public official or candidate has or has had a personal, beneficial interest or investment, including stocks or other securities, in excess of $1,000, except for individual items involved in a mutual fund or a blind trust, or a time or demand deposit in a financial insti- tution, shares in a credit union, or the cash surrender value of life insurance. [(4)] (3) Each person for whom the public official or candidate for public office has performed services for a fee in excess of $1,000, except for any disclosure otherwise prohibited by law or by a professional code of ethics. SECTION 21. ORB 244.100 is amended to read; 244.100. [(1) The Oregon Government Standards and Practices Commission by rule may require the disclosure and reporting of gifts or other compensation made to or received by a public official or candidate for elective office.] [(2) The commission by rule may exempt from the gift limitation contained in ORS 244.04'0, any gift of food or beverage but may require that when gifts of food or beverage exceed a dollar amount fixed by the commission, the source thereof shall be disclosed on a form prescribed by the commission. ] (1) A public official or candidate for public office who is required to file a statement of economic interest under ORS 244.050 shall file with the Oregon Government Standards and Practices Commission, according to the schedule set forth in section 23 of this 2007 Act, a statement showing for the applicable reporting period: (a) Any expenses with an aggregate value exceeding $50 received by the public official when participating in a convention, mission, trip or other meeting described in ORS ~W4.020 (5HbHF). The statement shall include the name and address of the organization or unit of government paying the expenses, the nature of the event and the date and amount of the expenditure. Enrolled Senate Bill 10 (SB la-C) Page 27 (b) Any expenses with an aggregate value exceeding $50 received by the public official when participating in a mission or negotiations or economic development activities desclribed in ORS 244.020 (5)(b)(H). The statement shall include the name and address of the person paying the expenses, the nature of the event and the date and amount of the expenditure. (c) All honoraria allowed under section 24 of this 2007 Act exceeding $15 received by the public official, candidate or member of the household of the official or candidate, the payer of each honorarium and the date and time of the event for which the honorarium was re- ceived. (d) Each source of income exceeding an aggregate amount of $1,000, whether or not taxable, received by the public official or candidate for public office, or a member of the household of the public official or candidate, if the source of that income is derived from an individual or business that has been doing business, does business or could reasonablly be expected to do business with, or has legislative or administrative interest in, the govern- mental agency of which the public official holds, or the candidate if elected would hold:. any official position or over which the public official exercises, or the candidate if elected would exercise, any authority. [(3)J (2) In addition to [any disclosures or reportsJ statements required under [subsections (1) and (2)] subsection (1) of this section[,]: (a) Any [person or J organization or unit of government that provides a public official with [food, lodging or travel expenses exceeding $50, as described in ORB 244.060 (6),] expenses with an aggregate value exceeding $50 for an event described in ORS 244.020 (5)(b)(F) sball notify the public official in writing of the amount of the expense. The organization or unit shall provid1e the notice [shall be sentJ to the public official within 10 days from the date [such] the expenses are in- curred. (b) Any person that provides a public official or a member of the household of a public official with an honorarium or other item allowed under section 24 of this 2007 Act with a value exceeding $15 shall notify the public official in writing of the value of the honorarium or other item. The person shall provide the notice to the public official within 10 days after the date of the event for which the honorarium or other item was received. SECTION 21a. If House Bill 2595 becomes law, section 21 of this 2007 Act (amending ORS 244.100) is repealed and ORB 244.100, as amended by section 6, chapter -' Oregon Laws 2007 (Enrolled House Bill 2595), is amended to read: 244.100. [In addition to any disclosures or reports required under this chapter or rules adopted under ORB 244.290, any person or organization that provides a public official with food, lodging or travel expenses exceeding $100, as described in ORB 244.060 (6), shall notify the public official in writing of the amount of the expense. The notice shall be sent to the public official within 10 days from the date the expenses are incurred.] (1) A public official or candidate for public office who is required to file a statemelt1t of economic interest under ORS 244.050 shall file with the Oregon Government Standards and Practices Commission, according to the schedule set forth in section 23 of this 2007 Act, a statement showing for the applicable reporting period: (a) Any expenses with an aggregate value exceeding $50 received by the public oflficial when participating in a convention, mission, trip or other meeting described in ORS 2"'1.020 (5)(b)(F). The statement shall include the name and address of the organization or unit of government paying the expenses, the nature of the event and the date and amount of the expenditure. (b) Any expenses with an aggregate value exceeding $50 received by the public ofl5cial when participating in a mission or negotiations or economic development activities desclibed in ORS 244.020 (5)(b)(H). The statement shall include the name and address of the person paying the expenses, the nature of the event and the date and amount of the expenditure. (c) All honoraria allowed under section 24 of this 2007 Act exceeding $15 received by the public official, candidate or member of the household of the official or candidate, the payer Enrolled Senate Bill 10 (SB lO-C) Page 28 of each honorarium and the date and time of the event for which the honorarium was re- ceived. (d) Each source of income exceeding an aggregate amount of $1,000, whether or not taxable, received by the public official or candidate for public office, or a member of the household of the public official or candidate, if the source of that income is derived from an individual or business that has been doing business, does business or could reasonably be expected to do business with, or has legislative or administrative interest in, the govern- mental agency of which the public official holds, or the candidate if elected would hold, any official position or over which the public official exercises, or the candidate if elected would exercise, any authority. (2) In addition to statements required under subsection (1) of this section: (a) Any organization or unit of government that provides a public official with expEmses with an aggregate value exceeding $50 for an event described in ORB 244.020 (5)(b)(F) shall notify the public official in writing of the amount of the expense. The organization or unit shall provide the notice to the public official within 10 days from the date the expenses are incurred. (b) Any person that provides a public official or a member of the household of a public official with an honorarium or other item allowed under section 24 of this 2007 Act with a value exceeding $15 shall notify the public official in writing of the value of the honorarium or other item. The person shall provide the notice to the public official within 10 days after the date of the event for which the honorarium or other item was received. SECTION 22. Sections 23 and 23a of this 2007 Act are added to and made a part of ORS chapter 244. SECTION 23. Statements required to be filed with the Oregon Government Standards and Practices Commission under ORS 244.100 and section 35 of this 2007 Act shall be filed in each calendar year: (1) Not later than April 15, for the accounting period beginning January 1 and ending March 31; (2) Not later than July 15, for the accounting period beginning April 1 and ending ,June 30; (3) Not later than October 15, for the accounting period beginning July 1 and ending September 30; and (4) Not later than January 15 of the following calendar year, for the accounting pE!riod beginning October 1 and ending December 31. SECTION 23a. (1) As used in this section: (a) "Public body" has the meaning given that term in ORS 174.109. (b) "Public contract" has the meaning given that term in ORS 279A.OIO. (2) Except as provided in subsection (3) of this section, a person may not, for two years after the person ceases to hold a position as a public official, have a direct beneficial financial interest in a public contract that was authorized by: (a) The person acting in the capacity of a public official; or (b) A board, commission, council, bureau, committee or other governing body of a public body of which the person was a member when the contract was authorized. (3) Subsection (2) of this section does not apply to a person who was a member of a board, commission, council, bureau, committee or other governing body of a public body when the contract was authorized, but who did not participate in the authorization of' the contract. HONORARIA SECTION 24. (1) Except as provided in subsection (3) of this section, a public official may not solicit or receive, whether directly or indirectly, honoraria for the public official or any Enrolled Senate Bill 10 (SB 10.C) Page 29 member of the household of the public official if the honoraria are solicited or received in connection with the official duties of the public official. (2) Except as provided in subsection (3) of this section, a candidate for public office may not solicit or receive, whether directly or indirectly, honoraria for the candidate or any member of the household of the candidate if the honoraria are solicited or received in con- nection with the official duties of the public office for which the person is a candidate. (3) This section does not prohibit: (a) The solicitation or receipt of an honorarium or a certificate, plaque, commemorative token or other item with a value of $50 or less; or (b) The solicitation or receipt of an honorarium for services performed in relation to the private profession, occupation, avocation or expertise of the public official or candidate. SECTION 25. ORS 244.280 is amended to read: 244.280. (1) Upon the written request of any [public official, candidate for public office or any] person, or upon its own motion, the Oregon Government Standards and Practices Commission, under signature of the chairperson, may issue and publish opinions on the requirements of this chapter, based on actual or hypothetical circumstances. (2) If any public official or business with which the public official is associated is in doubt whether a proposed transaction or action constitutes a violation of this chapter, the public official or the business may request in writing a determination from the commission. [If any public official is in doubt whether receipt of an honoraria is in violation of this chapter because the person paying the honoraria may be found to have a legislative or administrative interest, the public official shall request in writing a determination from the commission.] The requester shall supply such information as the commission requests to enable [it to issue the interpretation] the commission to make the determination. (3) A public official [or business with which a public official is associated shall not be] is not li- able under this chapterL] for any action or transaction carried out in accordance with [an advisory interpretation issued] a determination made under subsection (2) of this section. [Such an advisory interpretation shall be] The determination is considered a formal opinion having precedential effect and [shall be subject to review] must be reviewed by legal counsel to the commission before the [interpretation] determination is sent to the requester. SECTION 25a. If House Bill 2595 becomes law, section 25 of this 2007 Act (amending ORS 244.280) is repealed and ORS 244.280, as amended by section 12, chapter --' Oregon [,aws 2007 (Enrolled House Bill 2595), is amended to read: 244.280. (1) Upon the written request of any person, or upon its own motion, the Oregon Gov- ernment Ethics Commission, under signature of the chairperson, may issue and publish wnitten commission advisory opinions on the application of any provision of this chapter to any proposed transaction or action or any actual or hypothetical circumstance. A commission advisory opinion, and a decision by the commission to issue an advisory opinion on its own motion, must be approved by a majority of the members of the commission. Legal counsel to the commission shall review a proposed commission advisory opinion before the opinion is considered by the commission. (2) Not later than 60 days after the date the commission receives the written request for a commission advisory opinion, the commission shall issue either the opinion or a written denial of the request. The written denial shall explain the reasons for the denial. The commission may ask the person requesting the advisory opinion to supply additional information the commission consid- ers necessary to render the opinion. The commission, by vote of a majority of the members of the commission, may extend the 60-day deadline by one period not to exceed 60 days. (3) Except as provided in this subsection, unless the commission advisory opinion is revised or revoked, the commission [or a court] may not impose a penalty under ORS 244.350 or 244.360 on a person for any good faith action the person takes in reliance on an advisory opinion issued under this section. The commission [or a court] may impose a penalty under ORS 244.350 or 244.360 on the person who requested the advisory opinion if the commission [or court] determines that the person omitted or misstated material facts in making the request. Enrolled Senate Bill 10 (SB 10-C) Page 30 SECTION 26. ORS 351.067 is amended to read; 351.067. (1) In carrying out its authority under ORS 351.070, the State Board of Higher Educa- tion may authorize receipt of compensation for any officer or employee of the Oregon University System from private or public resources, including, but not limited to, income from: (a) Consulting; (b) Appearances and speeches; (c) Intellectual property conceived, reduced to practice or originated and therefore owned within the Oregon University System; (d) Providing services or other valuable consideration for a private corporation, individual, or entity, whether paid in cash or in-kind, stock or other equity interest, or anything of value re~~ard- less of whether there is a licensing agreement between the Oregon University System and the pri- vate entity; and (e) Performing public duties paid by private organizations, including institution corporate affil- iates, which augment an officer's or employee's publicly funded salary. Such income shall be au- thorized and received in accordance with policies and rules established by the board. (2) The board [shall] may not authorize compensation, as defined in subsection (1) of this sec- tion, that, in the board's judgment, does not comport with the mission of the institution and the Oregon University System or substantially interferes with an officer's or employee's duties to the Oregon University System. (3) Any compensation[,j described and authorized under subsection (1) of this section[, shall be] is considered official [salary, honorarium] compensation or reimbursement of expenses for purposes of ORB 244.040 and is not considered an honorarium prohibited by section 24 of this :2007 Act. If authorization or receipt of [such] the compensation creates a potential conflict of interest, the officer or employee shall report the potential conflict [shall be reported] in writing in ac- cordance with rules of the state board. The disclosure is a public record subject to public inspection. (4) The state board shall adopt by rule standards governing employee outside employment and activities, including potential conflict of interest, as defined by state board rule and consistent with ORS 244.020, and the public disclosure thereof, and procedures for reporting and hearing potential or actual conflict of interest complaints. SECTION 27. ORS 353.270 is amended to read; 353.270. (1) Oregon Health and Science University may authorize receipt of compensation for any officer or employee of the university from private or public resources, including but not limited to income from: (a) Consulting; (b) Appearances and speeches; (c) Intellectual property conceived, reduced to practice or originated and therefore owned within the university; (d) Providing services or other valuable consideration for a private corporation, individual or entity, whether paid in cash or in kind, stock or other equity interest, or anything of value regard- less of whether there is a licensing agreement between the university and the private entity; (e) Performing public duties paid by private organizations, including university corporate affil- iates, that augment an officer's or employee's publicly funded salary. Such income shall be author- ized and received in accordance with policies established by the university; and (f) Providing medical and other health services. (2) The university [shall] may not authorize compensation, as described in subsection (1) of this section, that, in the university's judgment, does not comport with the missions of the university or substantially interferes with an officer's or employee's duties to the university. (3) Any compensation described and authorized under subsection (1) of this section [shall be] is considered official [salary, honorarium] compensation or reimbursement of expenses for purposes of ORS 244.040 and is not considered an honorarium prohibited by section 24 of this ~~OO7 Act. If authorization or receipt of [such] the compensation creates a potential conflict of interest, the officer or employee shall report the potential conflict [shall be reported] in writing in ac- Enrolled Senate Bill 10 (SB 1O-C) Page 31 cordance with policies of the university. The disclosure is a public record subject to public in- spection. (4) The university shall adopt standards governing employee outside employment and activities of employees, including potential conflicts of interest, as defined by the university and consistent with ORB 244.020, and the public disclosure thereof, and procedures for reporting and hearing po- tential or actual conflict of interest complaints. LEGAL EXPENSE TRUST FUND SECTION 28. Sections 29 to 37 of this 2007 Act are added to and made a part of ORS chapter 244. SECTION 29. (1) Subject to the authorization of the Oregon Government Standards and Practices Commission as described in section 31 of this 2007 Act, a public official ma.y es- tablish a legal expense trust fund if the public official incurs or reasonably expects to incur legal expenses described in subsection (2) of this section. (2) Proceeds from the trust fund may be used by the public official to defray legal ex- penses incurred by the public official in any civil, criminal or other legal proceeding or in. vestigation that relates to or arises from the course and scope of duties of the person as a public official. The legal expenses must be incurred in connection with: (a) The issuance of a court's stalking protective order under ORS 30.866 or 163.738; (b) The issuance of a citation under ORS 163.735; (c) A criminal prosecution under ORS 163.732; (d) A civil action under ORS 30.866; or (e) Defending the public official in a proceeding or investigation brought or maintained by a public body as defined in ORS 174.109. (3) Except as provided in subsection (2) of this section, a public official may not use proceeds from the trust fund for any personal use. (4) A public official may not establish or maintain more than one legal expense trust fund at anyone time. (5) A public official who establishes a legal expense trust fund may not solicit, re(~eive or handle any contributions to the fund. (6) The provisions of ORS chapter 130 do not apply to a trust fund established under sections 29 to 37 of this 2007 Act. SECTION 30. (1) The proceeds of a legal expense trust fund may be used to: (a) Defray legal expenses described in section 29 of this 2007 Act; (b) Defray costs reasonably incuned in administering the trust fund, including but not limited to costs incident to the solicitation of funds; and (c) Discharge any tax liabilities incurred as a result of the creation, operation or ad- ministration of the trust fund. (2) The proceeds of a trust fund may also be used to defray or discharge expenses, costs or liabilities incuned before the fund was established if the expenses, costs or liabilities, are related to the legal proceeding for which the fund was established. SECTION 31. (1) A public official may apply to establish a legal expense trust fund by filing an application with the Oregon Govemment Standards and Practices Commission. The application must contain: (a) A copy of an executed trust agreement described in subsection (2) of this sectioIIL; (b) A sworn affidavit described in subsection (3) of this section signed by the public offi- cial; and (c) A sworn affidavit described in subsection (4) of this section signed by the trusteE~. (2) The trust agreement must contain the following: (a) A provision incorporating by reference the provisions of sections 29 to 37 of this 2007 Act; and Enrolled Senate Bill 10 (SB 10-C) Pal~e 32 (b) A designation of a trustee who meets the requirements of section 32 of this 2007' Act. (3) The affidavit of the public official must state: (a) The nature of the legal proceeding that requires establishment of the trust fund; (b) That the public official will comply with the provisions of sections 29 to 37 of this 2007 Act; and (c) That the public official is responsible for the proper administration of the trust fund, even though a trustee of the fund has been designated. (4) The affidavit of the trustee must state that the trustee: (a) Has read and understands sections 29 to 37 of this 2007 Act; and (b) Consents to administer the trust fund in compliance with sections 29 to 37 of this 2007 Act. (5) Upon receiving an application under this section, the commission shall review the trust agreement, the affidavits and any supporting documents or instruments filed to de- termine whether the application meets the requirements of sections 29 to 37 of this 2007 Act. If the commission detennines that the application meets the requirements of sections ~!9 to 37 of this 2007 Act, the commission shall grant written authorization to the public official to establish the trust fund. (6) The commission shall review the quarterly statements required under section 35 of this 2007 Act and shall monitor the activities of each trust fund to ensure continued '~om- pliance with sections 29 to 37 of this 2007 Act. (7) Unless subject to the attorney-client privilege, all documents required to be filed re- lating to the creation and administration of a trust fund are public records subject to dis- closure as provided in ORS 192.410 to 192.505. (8) A public official may not establish a legal expense trust fund without receiving prior written authorization of the commission as described in this section. (9) A public official may file an amendment to a trust agreement approved as part of a trust fund under this section. The commission shall approve the amendment if the commis- sion detennines the amendment meets the requirements of sections 29 to 37 of this 2007 Act. SECTION 32. (1) The trustee of a legal expense trust fund is responsible for: (a) The receipt and deposit of contributions to the trust fund; (b) The authorization of expenditures and disbursements from the trust fund; (c) The filing of quarterly statements required under section 35 of this 2007 Act; andl (d) The perfonnance of other tasks incident to the administration of the trust fund. (2) The trustee may not: (a) Be a public official who serves the same public body as the public official who e~;tab- lishes the trust fund; (b) Be a relative of the public official who establishes the trust fund; (c) Be an attorney for the public official in the legal proceeding for which the trust fund is established, or a member, partner, associate or employee of the finn employing tht:! at- torney; or (d) Have a business or employment relationship with the public official who establishes the trust fund. SECTION 33. (1) Except as provided in subsection (3) of this section, any person may contribute to a legal expense trust fund established under sections 29 to 37 of this 2007 Act. (2) A person may make contributions of moneys to a legal expense trust fund in unlim- ited amounts. Pro bono legal assistance and other in-kind assistance may also be provided without limit and is considered a contribution subject to the reporting requirements of sec- tion 35 of this 2007 Act. (3) A political committee as defined in ORS 260.005 that is a principal campaign commit- tee may not contribute to a legal expense trust fund. SECTION 34. (1) A trustee of a legal expense tILlst fund shall establish a single exclusive account in a financial institution, as defined in ORS 706.008. The financial institution must Enrolled Senate Bill 10 (SB 10-C) Page 33 be located in this state and must ordinarily conduct business with the general public in this state. (2) The trustee shall maintain the account in the name of the trust fund. (3) All expenditures made by the trustee shall be drawn from the account and: (a) Issued on a check signed by the trustee; or (b) Paid using a debit card or other form of electronic transaction. (4) A contribution received by a trustee shall be deposited into the account not later than seven calendar days after the date the contribution is received. This subsection does not apply to in-kind contributions received. (5) This section does not prohibit the transfer of any amount deposited in the account into a certificate of deposit, stock fund or other investment instrument. (6) The account may not include any public or private moneys or any moneys of any other person, other than contributions received by the trustee. (7) A trustee shall retain a copy of each financial institution account statement from the account described in this section for not less than two years after the date the statement is issued by the financial institution. SECTION 35. (1) The trustee of a legal expense trust fund shall, according to the sched- ule described in subsection (3) of this section, file with the Oregon Government Standards and Practices Commission a statement for the applicable reporting period showing contrib- utions received by the trustee and expenditures made from the trust fund account estab- lished under section 34 of this 2007 Act. (2) Each statement shall list: (a) The name and address of each person who contributed an aggregate amount of more than $75, and the total amount contributed by that person; (b) The total amount of contributions not listed under paragraph (a) of this subsec:tion as a single item, but shall specify how those contributions were obtained; (c) The amount and purpose of each expenditure and the name and address of each payee; and (d) The name and address of any person contributing pro bono legal assistance and the fair market value of the assistance provided by the person. (3) Statements required to be filed with the commission under this section shall be filed according to the schedule described in section 23 of this 2007 Act. (4) If no contributions are received and no expenditures made during the reporting: pe- riod, the trustee shall file a statement indicating that no contributions were deposited and no expenditures were made. (5) The trustee may amend a statement filed under this section without penalty if the amendment is filed with the commission not later than 30 days after the deadline for fiiling the statement. SECTION 36. (1) A legal expense trust fund established under sections 29 to 37 of this 2007 Act may be tenninated by: (a) The public official who established the trust fund; (b) Subject to subsection (2) of this section, the terms of the trust agreement; or (c) The Oregon Government Standards and Practices Commission following a dete:nni- nation by the commission that a violation of any provision of ORS chapter 244 has occurred in connection with the trust fund. (2) A trust agreement may provide that a legal expense trust fund is terminated not later than six months following the completion of the legal proceeding for which the fund wa~; es- tablished. Upon application of the public official who established the trust fund, the c:om- mission may extend the existence of the trust fund to a specified date if the commission determines that the public official has incurred legal expenses that exceed the balance re- maining in the fund. If the commission extends the existence of the trust fund, the tJrust fund terminates on the date the extension expires. Enrolled Senate Bill 10 (SB lO-C) Page 34 (3) Following termination of a legal expense trust fund, the trustee may not accept con~ tributions to or make expenditures from the fund. (4) Not later than 30 days after a trust fund is terminated, the trustee of the fund shall file with the commission a final report listing the totals of all contributions made to the fund and all expenditures made from the fund. SECTION 37. (1) Not later than 30 days after a legal expense trust fund is tenninated, the trustee of the fund shall return any moneys remaining in the fund to contributors to the fund on a pro rata basis. (2) If the legal proceeding for which the trust fund was established results in an award of attorney fees, costs or any other money judgment award to or in favor of the public: offi- cial, amounts awarded shall be distributed in the following order: (a) To pay outstanding legal expenses; (b) To contributors to the trust fund on a pro rata basis; and (c) To the public official or, if required by the trust agreement, to an organization exempt from taxation under section 501(c)(3) of the Intemal Revenue Code. CONFORMING AMENDMENTS SECTION 38. ORS 293.708 is amended to read: 293.708. (1) As used in this section: (a) "Business" has the meaning given that term in ORS 244.020. (b) "Business with which the person is associated" has the meaning given that term in ORS 244.020. (c) "Relative" has the meaning given that term in ORS 244.020. (2) When a member of the Oregon Investment Council becomes aware that action on a m.atter pending before the council might lead to private pecuniary benefit or detriment to the person, to a relative of the person or to a business with which the person or a relative of the person is associ- ated, the member shall notify in writing the State Treasurer or the Chief Deputy State Treasurer that any action, decision or recomm.endation by the member might constitute an actual or pote'ntial conflict of interest. The member shall provide the notice not later than three business days after the member becomes aware of the possibility of an actual or potential conflict. (3) Subsection (2) of this section does not apply if the pecuniary benefit or detriment arises out of circumstances described in ORS 244.020 [(14)(a) to Ie)] (Il)(a) to (c). (4) Nothing in this section excuses a member of the council from compliance with ORS 244U20. SECTION 38a. ORS 244.110 is amended to read: 244.110. (1) Any statement of economic interest required to be filed by ORS 244.050, 244:.060, 244.070, 244.080, 244.090 or 244.100 or by rule shall contain or be verified by a written declaration that it is made under the penalties of false swearing. [Such] The declaration [shall be] is in lieu of any oath otherwise required. (2) [No] A person [shall] may not willfully make and subscribe any return statement or other document [which] that contains or is verified by a written declaration that it is made under penal- ties for false swearing, which the person does not believe to be true and correct to every matter. SECTION 3Sb. If House Bill 2595 becomes law, section 3Sa of this 2007 Act (amending ORB 244.110) is repealed. MISCELLANEOUS PROVISIONS SECTION 39. (1) Section 18 of this 2007 Act is added to and made a part of ORS 2441.010 to 244.040. (2) Section 24 of this 2007 Act is added to and made a part of ORS chapter 244. SECTION 39a. ORS 244.390, as amended by section 2, chapter _, Oregon Laws 2007 (Enrolled House Bill 2595), is amended to read: Enrolled Senate Bill 10 (SB lO-C) Page 35 244.390. (1) A penalty or sanction imposed [issued] by the Oregon Government Ethics Commis- sion [or a court] under this chapter is in addition to and not in lieu of any other penalty or sanction that may be imposed according to law. (2) Before making a finding that there is cause to undertake an investigation under ORS 244.260 and before imposing a civil penalty under ORS 244.350 or 244.360, the commission [or a court] shall consider the public interest and any other penalty or sanction that has been or may be imposed on the public official as a result of the same conduct that is the subject of action by the commission [or court] under ORS 244.260. (3) Nothing in this chapter is intended to affect: (a) Any statute requiring disclosure of economic interest by any public official or candidate for public office. (b) Any statute prohibiting or authorizing specific conduct on the part of any public official or candidate for public office. SECTION 39b. Section 5, chapter _, Oregon Laws 2007 (Enrolled House Bill 2595), is amended to read: Sec. 5. (1) For the purpose of protecting against violations of the provisions of this chapter, a state agency, as defined in ORB 183.750, or a statewide association of public bodies, as defined in ORB 174.109, may adopt rules or policies interpreting the provisions of this chapter. The rules or policies must be consistent with the provisions of this chapter. A state agency or a statewide asso- ciation of public bodies may submit rules or policies adopted under this subsection to the Oregon Government Ethics Commission for review. (2) Upon receiving rules or policies submitted under subsection (1) of this section, the commis- sion shall review the rules and policies to determine whether the rules and policies are consistent with the provisions of this chapter. The commission, by a vote of a majority of the members of the commission, shall approve or reject the rules or policies. The commission shall notify the state agency or statewide association of public bodies in writing of the commission's approval Ot re- jection. A written notice of rejection shall explain the reasons for the rejection. (3) Unless the applicable rule or policy is amended or repealed by the state agency or the statewide association of public bodies, the commission [or a court] may not impose a penalty under ORS 244.350 or 244.360 on a public official for any good faith action the official takes in compliance with a rule or policy that was adopted by the state agency that the official serves, or by a statewide association of which the public body that the official serves is a member, and approved by the commission under subsection (2) of this section. SECTION 39c. Section 14, chapter _, Oregon Laws 2007 (Enrolled House Bill 2595), is amended to read: Sec. 14. (1) Upon the written request of any person, the executive director of the Oregon Gov- ernment Ethics Commission may issue and publish written staff advisory opinions on the application of any provision of this chapter to any proposed transaction or action or any actual or hypothetical circumstance. (2) Not later than 30 days after the date the executive director receives the written request for a staff advisory opinion, the executive director shall issue either the opinion or a written denial of the request. The written denial shall explain the reasons for the denial. The executive director may ask the person requesting the advisory opinion to supply additional information the executive di- rector considers necessary to render the opinion. The executive director may extend the 30-day deadline by one period not to exceed 30 days. The executive director shall clearly designate an opinion issued under this section as a staff advisory opinion. (3) Except as provided in this subsection, unless the staff advisory opinion is revised or revoked, before imposing any penalty under ORS 244.350 or 244.360, the commission lor a court] shall consider whether the action that may be subject to penalty was taken in reliance on a staff advisory opinion issued under this section. If a penalty may be imposed on the person who requested the opinion, the commission [or court] is not required to consider reliance on the opinion if the commission [or court] determines that the person omitted or misstated material facts in making the request. Enrolled Senate Bill 10 (SB lO.e) Page 36 (4) At each regular meeting of the commission, the executive director shall report to the com- mission on all staff advisory opinions issued since the last regular meeting of the commission. The commission on its own motion may issue a commission advisory opinion under ORS 244.280 on the same facts or circumstances that form the basis for any staff advisory opinion. SECTION 39d. Section 15, chapter _, Oregon Laws 2007 (Enrolled House Bill 259Ei), is amended to read: Sec. 15. (1) Upon the written or oral request of any person, the executive director or other staff of the Oregon Government Ethics Commission may issue written or oral staff advice on the appli. cation of any provision of this chapter to any proposed transaction or action or any actual or hy- pothetical circumstance. Any written advice not designated as a staff advisory opinion under section 14, chapter _, Oregon Laws 2007 (Enrolled House Bill 2595), [of this 2007 Act] is con- sidered staff advice issued under this section. (2) Before imposing any penalty under ORS 244.350 or 244.360, the commission [or a court] may consider whether the action that may be subject to penalty was taken in reliance on staff advice issued under this section. SECTION 3ge. Section 40b, chapter _, Oregon Laws 2007 (Enrolled House Bill 259S), is amended to read: Sec. 40b. (1) The amendments to ORS 244.250 by section 1, chapter -' Oregon Laws ::!007 (Enrolled House Bill 2595), [of this 2007 Act] are intended to change the name of the "Oregon Government Standards and Practices Commission" to the "Oregon Government Ethics Commission. " (2) The amendments to ORS 244.345 by section 40a, chapter -' Oregon Laws 2007 (Enrolled House Bill 2595), [of this 2007 Act] are intended to change the name of the "Oregon Government Standards and Practices Commission Account" to the "Oregon Government Ethics Commission Ac- count." (3) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the "Oregon Government Standards and Practices Commission," wherever they occur in Oregon Revised Statutes, other words designating the "Oregon Government Ethics Commission." (4) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the "Oregon Government Standards and Practices Commission Account," wherever they occur in Oregon Revised Statutes, other words designating the "Oregon Government Ethics Commission Account. (5) Any reference to the Oregon Government Standards and Practices Commission in an Act enacted by the Seventy-fourth Legislative Assembly and not published in Oregon Revised Statutes is considered a reference to the Oregon Government Ethics Commission. (6) Any reference to the Oregon Government Standards and Practices Commission Ac- count in an Act enacted by the Seventy-fourth Legislative Assembly and not published in Oregon Revised Statutes is considered a reference to the Oregon Government Ethics Com- mission Account. SECTION 40. (1) Sections 1 to 5, 15a, I5b, 18, 22, 23, 23a, 24, 28 and 29 to 37 of this ~~007 Act and the amendments to ORS 171.725, 171.730, 171.735, 171.740, 171.745, 171.750, 171.772, 171.992, 244.020, 244.040, 244.045, 244.050, 244.060, 244.070, 244.100, 244.110, 244.280, 244.290, 244.350, 244.380, 280.407, 293.708, 351.067 and 353.270 by sections 6 to 8, 9, 10 to 15, 16, 17, 19 to 21, 25 to 27, 38 and 38a of this 2007 Act become operative January 1, 2008. (2) The Oregon Government Standards and Practices Commission and any other public body as defined in ORS 174.109 may adopt rules or take any other action before the operative date specified in subsection (1) of this section that is necessary to enable the commission or public body to exercise, on or after the operative date specified in subsection (1) of this section, all the duties, functions and powers conferred on the commission or public body by this 2007 Act. Enrolled Senate Bill 10 (SB 10.C) Page 37 SECTION 41. (1) Section 5 of this 2007 Act and the amendments to ORS 171.745 and 171.750 by sections 6d and 7 of this 2007 Act apply to statements required to be filed for re- porting periods beginning on or after January 1, 2008. (2) The first statement filed under ORS 171.745, as amended by section 6d of this 2007 Act, shall include amounts expended prior to January 1, 2008, that were not included in a statement filed prior to January 1, 2008. (3) Notwithstanding ORS 171.750, as amended by section 7 of this 2007 Act, a person re- quired to file a statement under ORS 171.750 for the calendar year 2007 shall file the s1:ate- ment not later than January 31, 2008. (4) The amendments to ORS 171.772 and 244.290 by sections 8 and 9 of this 2007 Act apply to statements required to be filed on or after January 1, 2008. (5) The amendments to ORS 171.992 and 244.350 by sections 10 and 11 of this 2007 Act apply to: (a) Violations of any provision of ORS 171.740 to 171.762, any rule adopted under ORB 171.725 to 171.785, ORS chapter 244 or any resolution adopted under ORS chapter 244 oc:cur. ring on or after January 1, 2008; (b) Violations of ORS 293.708 occurring prior to, on or after January 1, 2008; and (c) Statements of economic interest required to be filed on or after January 1, 2008. (6) The amendments to ORS 244.360 by section 12 of this 2007 Act apply to violationls of any provision of ORS chapter 244 occurring prior to, on or after January 1, 2008. (7) The amendments to ORS 244.050 by section 13 of this 2007 Act apply to statem,ents of economic interest required to be filed on or after January 1, 2008. (8) The amendments to ORB 260.407 by section 14 of this 2007 Act apply to expendit1ures or distributions of contributions made on or after January 1, 2008. (9) The amendments to ORS 244.045 by section 15 of this 2007 Act apply to persons who cease being members of the Legislative Assembly on or after January 1, 2008. SECTION 42. (1) Section 18 of this 2007 Act applies to gifts received or made on or after January 1, 2008. (2) The amendments to ORS 244.020 and 244.040 by sections 16 and 17 of this 2007 Act apply to activities that occur on or after January 1, 2008. (3) Section 24 of this 2007 Act applies to honoraria solicited or received on or after ~Jan. nary 1, 2008. (4) The amendments to ORS 244.060 and 244.100 hy sections 19 and 21 of this 2007 Act apply to expenses received or paid on or after January 1, 2008. A public official shall liS1G on the first statement of economic interest filed after January 1, 2008, all expenses the public official received prior to January 1, 2008, that were: (a) Required to be reported under ORS 244.060 on the day before January 1, 2008; and (b) Were not reported on a previous statement of economic interest the public official filed. (5) The amendments to ORS 351.067 and 353.270 by sections 26 and 27 of this 2007 Act apply to compensation received on or after January 1, 2008. SECTION 43. (1) Sections 29 to 37 of this 2007 Act and the amendments to ORS 244.020, 244.040 and 244.350 by sections 11, 16 and 17 of this 2007 Act apply to legal expense trust funds established for legal proceedings commenced prior to, on or after January I, 2008. (2) The amendments to ORS 244.020 and 244.040 by sections 16 and 17 of this 2007 Act apply to contributions made to legal expense trust funds on or after January 1, 2008. SECTION 44. (1) Any proceeding, action, prosecution or other business or matter undertaken or commenced before January 1, 2008, by the Oregon Govemment Standards and Practices Commission under any provision of ORB chapter 244 and still pending on Janu.ary 1, 2008, shall be conducted and completed by the commission in the same manner, under the same terms and conditions and with the same effect as though undertaken, conducted or completed before January I, 2008. Enrolled Senate Bill 10 (SB lO-C) Page 38 (2) Nothing in this 2007 Act relieves any person of any obligation with respect to any tax, fee, fine, civil penalty or other charge, interest, penalty, forfeiture or other liability, duty or obligation. SECTION 45. (1) The amendments to ORS 244.020, 244.050, 244.060 and 244.070 by sections 13, 16, 19 and 20 of this 2007 Act apply to statements required to be filed with the Oregon Government Standards and Practices Commission for reporting periods beginning on or after January 1, 2008. (2) Section 23 of this 2007 Act and the amendments to ORS 244.100 by section 21 of this 2007 Act apply to statements required to be filed and notices required to be provided for re- porting periods beginning on or after January 1, 2008. SECTION 46. (1) Except as provided in subsections (2) and (3) of this section, section 23a of this 2007 Act and the amendments to ORS 244.040 (5) by section 17 of this 2007 Act apply to public officials who cease to hold positions as public officials on or after January 1, 2:008. (2) Except as provided in subsection (3) of this section, section 23a of this 2007 Act and the amendments to ORS 244.040 (5) by section 17 of this 2007 Act apply to public officials holding elective public office whose tenns of office begin, or who are appointed to the office, on or after January 1, 2008. (3) Section 23a of this 2007 Act applies to an individual who ceases to hold the position of State Treasurer on or after January 1, 2008. SECTION 47. If House Bill 2595 becomes law, section 40 of this 2007 Act is amended to read: Sec. 40. (1) Sections 1 to 5, 15a, 15b, 18, 22, 23, 23a, 24, 28 and 29 to 37 of this 2007 Act and the amendments to ORB 171.725, 171.730, 171.735, 171.740, 171.745, 171.750, 171.772, 171.992,244.020, 244.040, 244.045, 244.050, 244.060, 244.070, 244.100, 244.110, 244.280, 244.290, 244.350, 244.360, 260.407, 293.708, 351.067 and 353.270 by sections 6 to 8, [9J 9c, 10, 11a, 12a, 13 to 15, [16J 16a, 17, 19 [to 21J, 20, 21a, [25 to] 25a, 26, 27, 38 and 38a of this 2007 Act become operative January 1, 2008. (2) The Oregon Government [Standards and Practices] Ethics Commission and any other public body as defined in ORS 174.109 may adopt rules or take any other action before the operative date specified in subsection (1) of this section that is necessary to enable the commission or public body to exercise, on or after the operative date specified in subsection (1) of this section, all the duties, functions and powers conferred on the commission or public body by this 2007 Act. SECTION 48. If House Bill 2595 becomes law, section 41 of this 2007 Act is amended to n!ad: Sec. 41. (1) Section 5 of this 2007 Act and the amendments to ORS 171.745 and 171.750 by sections 6d and 7 of this 2007 Act apply to statements required to be filed for reporting periods beginning on or after January 1, 2008. (2) The first statement filed under ORS 171.745, as amended by section 6d of this 2007 Act, shall include amounts expended prior to January 1, 2008, that were not included in a statement filed prior to January 1, 200B. (3) Notwithstanding ORS 171.750, as amended by section 7 of this 2007 Act, a person required to file a statement under ORS 171.750 for the calendar year 2007 shall file the statement not later than January 31, 2008. (4) The amendments to ORB 171.772 and 244.290 by sections 8 and [9J 9c of this 2007 Act apply to statements required to be filed on or after January 1, 2008. (5) The amendments to ORB 171.992 and 244.350 by sections 10 and [111 11a of this 2007 Act apply to: (a) Violations of any provision of ORS 171.740 to 171.762, any rule adopted under ORS 171.725 to 171.785, ORS chapter 244 or any resolution adopted under ORS [chapter 244] 244.160 occurring on or after January 1, 2008; (b) Violations of ORS 293.708 occurring prior to, on or after January 1, 2008; and (c) Statements of economic interest required to be filed on or after January 1, 2008. (6) The amendments to ORS 244.360 by section [12] 12a of this 2007 Act apply to violations of any provision of ORS chapter 244 occurring prior to, on or after January 1, 2008. Enrolled Senate Bill 10 (SB 10-C) Page 39 (7) The amendments to ORS 244.050 by section 13 of this 2007 Act apply to statements of eco- nomic interest required to be filed on or after January 1, 200B. (B) The amendments to ORS 260.407 by section 14 of this 2007 Act apply to expenditures or distributions of contributions made on or after January 1, 2008. (9) The amendments to ORS 244.045 by section 15 of this 2007 Act apply to persons who cease being members of the Legislative Assembly on or after January 1, 2008. SECTION 49. If House Bill 2595 becomes law, section 42 of this 2007 Act is amended to read: Sec. 42. (1) Section IB of this 2007 Act applies to gifts received or made on or after January 1, 2008. (2) The amendments to ORS 244.020 and 244.040 by sections [16] 16a and 17 of this 2007 Act apply to activities that occur on or after January 1, 2008. (3) Section 24 of this 2007 Act applies to honoraria solicited or received on or after January 1, 2008. (4) The amendments to ORS 244.060 and 244.100 by sections 19 and [211 21a of this 2007 Act apply to expenses received or paid on or after January 1, 2008. A public official shall list on the first statement of economic interest filed after January 1, 2008, all expenses the public official recl~ived prior to January 1, 2008, that were: (a) Required to be reported under ORS 244.060 on the day before January 1, 2008; and (b) Were not reported on a previous statement of economic interest the public official filed. (5) The amendments to ORS 351.067 and 353.270 by sections 26 and 27 of this 2007 Act apply to compensation received on or after January 1, 2008. SECTION 50. If House Bill 2595 becomes law, section 43 of this 2007 Act is amended to read: Sec. 43. (1) Sections 29 to 37 of this 2007 Act and the amendments to ORS 244.020, 244.040 and 244.350 by sections [11, 16] 11a, 16a and 17 of this 2007 Act apply to legal expense trust funds es~ tablished for legal proceedings commenced prior to, on or after January 1, 2008. (2) The amendments to ORS 244.020 and 244.040 by sections li6] 16a and 17 of this 2007 Act apply to contributions made to legal expense trust funds on or after January 1, 2008. SECTION 51. If House Bill 2595 becomes law, section 45 of this 2007 Act is amended to read: Sec. 45. (1) The amendments to ORS 244.020, 244.050, 244.060 and 244.070 by sections 13, [16] 16a, 19 and 20 of this 2007 Act apply to statements required to be filed with the Oregon Government [Standards and Practices] Ethics Commission for reporting periods beginning on or after January 1, 2008. (2) Section 23 of this 2007 Act and the amendments to ORS 244.100 by section [21] 21a of this 2007 Act apply to statements required to be filed and notices required to be provided for reporting periods beginning on or after January 1, 2008. SECTION 52. The unit captions used in this 2007 Act are provided only for the conven- ience of the reader and do not become part of the statutory law of this state or express any legislative intent in the enactment of this 2007 Act. SECTION 53. This 2007 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2007 Act takes effect on its passage. Enrolled Senate Bill 10 (SB lO-C) Pag,O! 40 Passed by Senate June 20, 2007 Repassed by Senate June 27, 2007 Secretary of Senate President of Senate Passed by House June 27, 2007 Speaker of House Enrolled Senate Bill 10 (SB 10-C) Received by Governor: .... ...... ............. .M., .... ................ .......................... .........., 2007 Approved: ........................M., ........................................................, 2007 Governor Filed in Office of Secretary of State: .......... ............. .M., ........ ...... ........ .................................., 2007 Secretary of State Page 41 I Martha Bennett - MAA wastewater facility Page 1 From: Eric Navickas <ericnavickas@hotmail.com> To: Martha Bennett <bennettm@ashlandor.us>, Cate Hartzell <cate@mind.nelt>, John Morrison <morrisoj@ashland.or.us>, Alice Hardesty <ahardesty88@charter.net>, Kate Jackson <katejackson@opendoor.com>, "russcity@zintech.org" <russcity@zintech.org>, david chapman <davidchapman@ashlandhome.net>, David Chapman <chapmand@gov.ashland.or.us> Date: 9/13/2007 840:44 AM Subject: MAA wastewater facility Martha, I would like this item added to the Council Agenda. I have full documentation of the Notice of Noncompliance, etc. if needed. The Forest Service and DEO approved the MAA wastewater treatment facility within the Ashland Creek Watershed conditioned on strict standards. Following it's construction in 2000, the DEO cited the Ski Area sewage plant as being out of compliance with its permit as of May 31,2003. Required monthly monitoring showed effluent Nitrogen contaminant level exceeding maximum allowable levels by up to 15 times with routine violations of five to seven times. Continued noncompliance would have placed procedural requirements on the MAA and resulted in the possible termination of the permit. The DEO responded on 4/25/2005 by issuing a new permit that removed the maximum allowable Nitrogen level entirely and any legally binding trigger mechanism to require compliance. The new permit required continued monitoring of Nitrogen with close over-site by the DEO. I am bringing this before council to request that we direct Staff to consult with the DEO on the current status of Nitrogen levels as well as other contaminants within the effluent discharge from the MAA wastewater facility and request a formal update from their on-site specialist. Respectfully, Eric Navickas More photos; more messages; more whatever - Get MORE with Windows Live ™ Hotmail@. NOW with 5GB storage. htlp:i/imagine-windowslive.com/hotmail/?Iocale=en-us&ocid= TXT _ T AGHM_migration_ HM_mini_ 5G _ 0907 ...'D .\..'/; regon ."" ~ 10hll ,\.. K:toh,b", "I,D" Govemo, Department of Environ,menlal Quality . Western Region Cran~' Paso Branch Office December 16,2002 5\0 NW <lth St., Rm n6 Grants 1'0$5, OR 97526.2019 (3<H) <171.2850 Jeff Hailllon Mt. Ashland Association 1745 Hwy 66 PO Ball 220 Ashland, OR 97520-0008 ......-. ,. ."""\:' / ,'~ RE: WQ - JACKSON County Mt. Ashland Ski Association Site ill # I02965/Permit # 101662 WRGPNON-02-05 NOTICE OF NONCOMPLIANCE (NON) if " " ., ',-' ~'.....r \~"'." . '~_J' Dear lvIr. Hanson: On October 9, 2002, Rick Blake und I met with you to inspect your waste water treatment facilities and review the elevated levels ofTota! Nitrogen reported on your 2001 Discharge Monitoring Report (DlvlR). Your DMR reported that your wastewater discharges contained Total Nitrogen concentrations ranging from 73.9 mg/l to,104.7 mg/I, which are significantly higher than your permitted discharge effluent limit of not more thnn 10 mg/las required in Schedule A of your permit. These elevated Total Nitrogen discharge concentrations are a violation of Oregon Revised Statutes (ORS) 468B.050(1) (c) and in accordance with our Enforcement Rules contained in Oregon Administrative Rules (OAR) 340-012-055(2)(8) are Class 2 violations. Thll Total Nitrogen limit of 10 mgil was established to ensure the groundwaters down gradient of your subsurface disposal fields would not be impacted to where their current and future UIle as a. potable source of drinking water supplies would be threatened. Your subsurface disposal fields are located in the City of A.:II11and' s watershed IUld the groundwater flows from this area eventually become part of Ashland's potable drinking water supply. . . Fortunately, to date the ground water monitoring you buve conducted down slope o,f the disposallields bave not yet shown lUly indications of elevated nitrogen contamination. Accordingly, in order to address the above violations, we are asking that by not lat~:r than March 1,2003, that you submit a plll!l and corrective implementation schedule on what steps you will take to lower your Total Nitrogen concentration discharges to achieve compliance with your permitted discharge concentration limitations. As part of this plan, we suggest you contact the firm who designed your current Sequent Batch Reactor lreatment wilt und have them evaluate why lhis unit is not perfonning in accordance with OEQ: SWR-lO" Page 2 WRGPNON-02-05 l2-16-02 the projectiooo they submitted when the pennit was originally issued. The plan alslJ needs to include the continuation of grolllJd water monitoring until it can be 3hown that the Tolal Nitrogen discharge concentration limit can be maintained within permit requirements. Please submit this plan to myanention at the Grants Pass DEQ Office using the address on the above letter head. Exceeding a permit established effluent limit i3 a Class 2 violation. Oregon Administrative Rule (OAR) 340-12-041 (2)(c) provides that a permittee shall not receive more than three NONs for Class IT violations of the swne permit within a thirty-six (36) month period without being issued a more formal enforcement action called a Notke of Permit Violation (NPV). The Department WilY, however, i3Sue an NPV prior to the third NON. If you have any questions, Of iflmay be of assistance to help you weet the March Ii" date, please contact me at (541) 471-2850. ext24. S~k Charles D. Costanzo, R.S. Qu-S lte Specialist Grants Pass Office, We3temRegion CC: Greg Farrell, Roseburg DEQ Ken Cote, Jackson Co. Planning Gary Stevens, Jackson Co. Environmental Health Kerri Nelson, Eugene DEQ . Sherry Brierty, Grants Pass DEQ 'lI:t o o N I '"'" o o N ~ - ~ C - s::: Q) ::J iE w Q) C'l ~ ~ Q) en <( - :!: L~~~'l ?1~ J'f \f:;Lj"Ucl. Ci.4.i ~ ':: () "- 4. ...l-:l. z ::s::: I- + o Z o t ; i I i i i ,I ! : ! !1 ! , i , i I I ! i I , i ! , i r i I , , I , , i . I I ! I . i ! I , , i I i I , -;- i ! I I I I , ! I I , I I , I ! I T i I , ! r , ! 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