Loading...
HomeMy WebLinkAboutCAP081414CITY OF CENTRAL POINT Central Point City Council Meeting Agenda City Hall August 14, 2014 541-664-3321 City Council Next Res. 1406 Mayor Next Ord. 1992 Hank Williams Ward I. REGULAR ME ETI NG CALLE D TO ORDER -7:00 P. M. Bruce Dingler II. PLEDGE OF ALLEGIANCE Ward II Kelly Geiger III. ROLL CALL Ward III Ellie George IV. PUBLIC APPEARANCES - This time is reserved for citizens to comment Ward IV on items that are not on the agenda. Allen Broderick V. CONSENTAGENDA At Large David Douglas Page 2-9 A. Approval of July 24, 2014 Council Min utes Rick Samuelson 10 B. Approval to cancel the second Council meetings in August, September, November and December 2014 11-20 C. Approval of Special Event for 2014 Drive Out Drugs Recovery Walk Administration Chris Clayton, City Manager VI. ITEMS REMOVED FROM CONSENT AGENDA Deanna Casey, City Recorder VII. PUBLIC HEARING, ORDINANCES, AND RESOLUTIONS Community 22-60 A. Resolution No. Authorizing Full Faith and Development ----J Tom Humphrey, Credit Borrowings to Refinance Outstanding Obligations Director for the City of Central Point (Clayton) Finance 62-72 B. Resolution No. , to Adopt Tax -Exempt Bond Bev Adams, Director Post -Issuance Compliance Policies for the City of Central Human Resources Point (Clayton) Barb Robson, Director Parks and Public 74-86 C. Second Reading- Ordinance No.Establishing Works Central Point Municipal Code Chapter 3.30 Marijuana Matt Samitore, and Marijuana -Infused Product Tax (Clayton) Director Jennifer Boardman, 88-94 D. First Reading, An Ordinance Amending Central Point Manager Municipal Code Chapter 5.24 Adult Businesses (Clayton) Police Kris Allison Chief 96-101 E. Second Reading — Ordinance No. Amending CPMC Chapter 17.60 by Adding Provisions for Interim Water Service and Development Standards for Lands within the Tolo Area (CP -1B) Urban Reserve (Samitore) 103-141 F. Resolution No. Ratifying the General Services Collective Bargaining Agreement and Authorizing the Mayor and City Manager to Sign the Agreement (Robson) 143- 146 G. Resolution No. , A Resolution Revising the Classification Pay Plan (Robson) 1�1 I I I�: i I ly I S I tii 148-149 A. Run 4 Freedom Financial Report (Boardman) 151-152 B. Planning Commission Report(Clayton) IX. MAYOR'S REPORT X. CITY MANAGER'S REPORT XI. COUNCIL REPORTS XII. DEPARTMENT REPORTS XIII. EXECUTIVE SESSION The City Council may adjourn to executive session under the provisions of ORS 192.660. Under the provisions of the Oregon Public Meetings Law, the proceedings of an executive session are not for publication or broadcast. XIV. ADJOURNMENT Consent Agenda CAP081414 Page CITY OF CENTRAL POINT City Council Meeting Minutes July 24, 2014 I. REGULAR MEETING CALLED TO ORDER Mayor Williams called the meeting to order at 7:00 p.m. II. PLEDGE OF ALLEGIANCE III. ROLL CALL: Mayor: Hank Williams Council Members: Allen Broderick, Bruce Dingler, Kelly Geiger, Rick Samuelson, and Ellie George were present. David Douglas was excused. City Manager Chris Clayton; City Attorney Darrell Jarvis; Police Chief Kris Allison; Community Development Director Tom Humphrey; Finance Director Bev Adams; Parks and Public Works Director Matt Samitore; and City Recorder Deanna Casey were also present. IV. PUBLIC APPEARANCES - None V. CONSENT AGENDA A. Approval of July 24, 2014 City Council Minutes B. Approval for Street Closure for D.A.R.E. Cruise C. Approval of OLCC Application — Big Town Hero D. Approval of OLCC Application — Walgreens Kelly Geiger moved to approve the Consent Agenda as presented. Rick Samuelson seconded. Rall call: Hank Williams, yes; Bruce Dingler, yes; Kelly Geiger, yes; Allen Broderick, yes; Rick Samuelson, yes; and Ellie George, yes. Motion approved. VI. ITEMS REMOVED FROM CONSENT AGENDA - None VII. PUBLIC HEARINGS, ORDINANCES AND RESOLUTIONS A. First Reading — An Ordinance Establishing Central Point Municipal Code Chapter 3.30 Marijuana and Marijuana Infused Product Tax City Manager Chris Clayton explained that the Central Point City Council has been very proactive in creating time, place and manner restrictions on medical marijuana dispensaries established under House Bill 3460. The City of Central point has received zero applications at this time. The City Council has exercised State -granted authority provided by Senate Bill 1531 to invoke a one —year moratorium on the establishment of medical marijuana facilities which will expire in May 2015. The City Council has remained resolute in the desire to discourage the establishment of such facilities within the City of Central Point. CAP081414 Paget The general election in November will include Oregon Ballot initiative #53 officially known as the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act. Section #42 of this ballot measure is specifically aimed at limiting local government's ability to offset public safety-related impacts/casts by collecting a product tax on marijuana -based products. The language will ban local jurisdictions from imposing any fee or tax, in connection with the purchase, sale, production, processing, transportation, and delivery of marijuana items. This language does not specifically repeal a local marijuana tax in effect at the time of the measure's passage. It can be argued that the language in the initiative would not pre-empt a taxation ordinance if it is adopted by the City Council prior to the election. Adoption of the ordinance does not guarantee that this tax would not be legally challenged; however, absent invalidation by a state court, this product tax ordinance would survive voter approval of ballot initiative #53. The proposed ordinance is a gross receipts tax on the sale of marijuana, medical marijuana and marijuana -infused products. A gross receipts tax is applied to the total gross taxable revenues of a business. The seller is responsible for maintaining accurate records of its gross revenues from taxable goods and services and then remitting a percentage to the taxing entity. The ordinance before the council tonight is similar to ordinances adopted in Colorado, the City of Ashland and taxing methodology that currently exists in the Central Point Municipal Code. The proposed ballot initiative does provide for a state-wide taxing structure on the sale of legalized/medical marijuana to be distributed in the following manner: Forty percent shall he transferred to the Common School Fund Twenty percent shall he transferred to the Mental Health Alcoholism and Drug Services Account Fifteen percent shall he transferred to the State Police Account Ten percent shall he transferred to cities based on population Ten percent shall he transferred to counties Five percent shall he transferred to Oregon Health Authority. Staff does not feel that the amount allocated to the cities will be sufficient to help with the impacted costs associated with providing adequate public safety. The proposed ordinance will implement a five percent (5%) tax on the gross sale amount paid to the seller by a registry identification cardholder, and ten percent (10%) tax of the gross sale amount paid to the seller of marijuana and marijuana - infused products by individuals who are not purchasing marijuana under the Oregon Medical Marijuana Program. The seller will be responsible for paying the tax on a quarterly basis to the City. Any revenue generated from this tax will go into the general fund to help with the cost of the programs that will be implemented if there are problems. Council was not happy with the distribution recommended by the ballot initiative. They feel that more should be distributed to the local jurisdictions who will be CAP081414 Page dealing with the fall -out from legalizing marijuana. Gold Hill and Ashland have already approved a local tax similar to this proposal. Eagle Point and Medford are discussing the topic in the coming weeks. Mayor Williams opened the Public Hearing. Medford Council Member John Michaels. Mr. Michaels stated that he is present as a citizen of Jackson County, not a representative of the Medford City Council. He is in support of implementing the tax tonight and would like to encourage all the local cities and Jackson County to work together to find opportunities where all cities would implement the same tax rate. He thinks that if a tax is put in place everyone should be on the same playing field. He is in favor of a universal rate that is much higher than 5% and 10%. The OLCC tax is a lot higher and he feels this would be a good way to make it difficult countywide to open this type of business. No one else came forward. Mayor Williams closed the public hearing. Mr. Clayton explained that he could approach the other cities and the County regarding unified tax rate. He does not feel it would be in the best interest of Central Point to postpone adoption of the current ordinance. It can be difficult to get all cities and the County to agree on things and delaying the adoption could close the window on the opportunity to put this in place before the November election. Bruce Dingier moved to second reading an Ordinance Establishing Central Point Municipal Code Chapter 3.30 Marijuana and Marijuana Infused Product Tax. Ellie George seconded. Roll call: Hank Williams, yes; Bruce Dingler, yes; Kelly Geiger, yes; Allen Broderick, yes; Rick Samuelson, yes; and Ellie George, yes. Motion approved. B. Second Reading — Ordinance No. 1991, Amending CPMC Chapter 15.04, Building Code; Chapter 15.12, Plumbing Code; Chapter 15.22, Privately Owned Swimming Pools; and Chapter 15.32 House Numbering. Community Development Director Tom Humphrey explained that this is the second reading of an ordinance to update the building and construction code to conform to the State building and construction code. Most of the changes are numerical code references and formatting revisions. At the direction of the Planning Commission staff reviewed and revised sections of the code that were no longer applicable or were outdated. Council recommended one revision at the first reading regarding the violation and penalty for house numbering. This has been updated to be the same as any other general code violation. Allen Broderick made a motion to approve Ordinance No. 1991, Amending CPMC Chapter 15.04, Building Code; Chapter 15.12, Plumbing Code; CAP081414 Page Chapter 15.22, Privately Owned Swimming Pools; and Chapter 15.32 House Numbering. Kelly Geiger seconded. Roll call: Hank Williams, yes; Bruce Dingler, yes; Kelly Geiger, yes; Allen Broderick, yes; Rick Samuelson, yes; and Ellie George, yes. Motion approved. C. First Reading/Public Hearing — Ordinance Amending Central Point Municipal Code 17.60 by Adding Provisions for Interim Water Service and Development Standards for Land within the Tolo Area (CP -1B Urban Reserve) Mr. Humphrey explained that currently the City has a proposal for inclusion of approximately 50 acres to the City's UGB. The area within CP -1B will be designated for industrial development once it is annexed into the City. A major impediment to the application is the availability of public water, which is a requirement of the city to annex property. Based on the City's Master Water System Plan city water service will not be extended to this urban reserve area until 2028. Funding for the extension is not scheduled until 2020 at the earliest. Without an interim solution to the provision for water for domestic and fire safety the area cannot be developed and the City will lose family wage job opportunities. The Interim Water Service Ordinance applies only to the CP -1B area and is limited to industrial/commercial land uses. The Ordinance requires developers to acknowledge that they are aware of their ultimate responsibility to financially participate in an improvement district for a public water system when available; and that there are interim water system standards that must be met as a condition of development. We have been working with the companies in this area for years in regards to the 7 Oaks Interchange. This area has always been of mutual concern for the City of Central Point and the County. Council discussed the option of wells to use until city water is available. Approval of this Ordinance will allow the businesses to move forward with their construction plans knowing that they will eventually be included in the City and have availability of water. They will also have the understanding that their construction and business will be restricted because of the limited access to water. Mayor Williams opened the public hearing, no one came forward and the public hearing was closed. There was discussion of a higher rate for this area of concern to help finance a water treatment plant. Staff will continue to look into grant options for expanding the water lines and partnering opportunities with businesses. Mr. Humphrey recommended a change to section D (2)(c) which as written, requires the waterline to be complete before a Certificate of Occupancy is issued. CAP081414 Pages If the business is able, it may use available water through wells that will satisfy safety concerns until a water line is constructed to service this area. The applicants preferred to complete construction rather than bond or otherwise postpone an approved interim water system. Allen Broderick moved to second reading Ordinance Amending Central Point Municipal Code 17.60 by Adding Provisions for Interim Water Service and Development Standards for Land within the Tolo Area with recommended changes to Section D (2) (c). Roll call: Hank Williams, yes; Bruce Dingier, yes; Kelly Geiger, yes; Allen Broderick, yes; Rick Samuelson, yes; and Ellie George, yes. Motion approved. D. Resolution No. 1405, Adopting an Agreement between Twin Creeks Development Co., LLC and the City of Central Point Mr. Humphrey explained that as part of the approval for Twin Creeks Transit - Oriented Development, the developer agreed to participate in certain infrastructure improvements as set forth in the Master Plan. The original Pre - Annexation Development Agreement expired in 2008 and set forth the responsibilities of both the City and the developer. The proposed resolution includes an agreement that restates responsibilities. All parties involved have mutually agreed to the recitals and substance of the agreement. This resolution accepts and authorizes the agreement between Twin Creeks Development and the City. Staff will prepare a separate resolution regarding acceptance of State Funding to complete the new railroad crossing. There was discussion regarding the ten year process to get to this point. They discussed the FEMA issues and the original agreement that expired after seven years. There are still several properties that are affected by FEMA issues and the Floodway. Mr. Clayton presented a spreadsheet that explained the monetary commitment for each party at this time. He explained that if the total contingency goes down, the city and COOT portion will go down, but the developer cost will not. The City will get credit for money already spent on the crossing. Kelly Geiger moved to approve Resolution No. 1405, Adopting an Agreement between Twin Creeks Development Co., LLC and the City of Central Point. Rick Samuelson seconded. Roll call: Hank Williams, yes; Brace Dingier, yes; Kelly Geiger, yes; Allen Broderick, yes; Rick Samuelson, yes; and Ellie George, yes. Motion approved. VIII. BUSINESS A. Battle of the Bones Financial Report Parks and Public Works Director Matt Samitore presented the Financial Report for the 2014 Battle of the Bones. The City Council has agreed in the past that profit from this event would be donated to the Parks and Recreation Foundation. CAP081414 Page The Foundation promoted the event stating that any donation would go towards rehabilitation of park equipment for handicap accessibility. He explained that the shorter event and two perfect days for the event provided a profit of $16,390. The true net profit of the event is $11,390 because the city already donated $5,000 for music costs. Staff costs are no longer attributed to this event. Staff suggests a $10,000 donation to the Parks and Recreation Foundation. Mr. Samitore stated that the event will likely need to be moved from Twin Creeks Park after one more year. We will need to find a venue that can handle the amount of people and the parking. Once the rail crossing and construction increases the empty fields used for parking will no longer be available. He also explained that there will be a cost increase for next year. The first tasting ticket for beer and wine will be $12.00 to help cover the cost of the glass. If additional tasting tickets are purchased they will be at the $10.00 price. We will also be working on all vendors inside the event having $1 tasting samples. No matter what changes we make there will always be a challenge of having enough BBC tastings to supply people throughout the entire evening. Staff will be discussing ways to increase the BBC tastings and still have a successful event. Allen Broderick made a motion to donate $10,000 to the Parks and Recreation Foundation from the Battle of the Bones profit. Kelly Geiger seconded. Roll call: Hank Williams, yes; Bruce Dingier, yes; Kelly Geiger, yes; Allen Broderick, yes; Rick Samuelson, yes; and Ellie George, yes. Motion approved. IX. MAYOR'S REPORT Mayor Williams reported that he: • Attended the Medford Water Commission meeting. They have been discussing water rate changes for summer months. • Attended a Regional Economic Forum presented by the State. • Attended the Jackson County Fair almost every night. • Attended a National Law Enforcement Leadership group meeting with Chief Allison. X. CITY MANAGER'S REPORT City Manager Chris Clayton reported that: • He attended the Regional Economic Forum with the Mayor. They were updated on the economic status of the area. • He attended a meeting with Avista for an annual update for Central Point. • He spoke with Rogue Community College representatives regarding the possibility of locating a campus in Central Point. He is planning a Study Session in August to go over those options with the Council. • There is a possibility that Jackson County Court will be relocating in Central Point. They are looking at several options including the City Hall building. CAP081414 Page] XI. COUNCIL REPORTS Council member Allen Broderick reported that he was recently in Cambria CA, they have a building moratorium because of the lack of water. He explained the water bills in that area are very high. Council Member Kelly Geiger reported that they have received approximately 25 applications for the vacant chamber position. They are still discussing the pay scale and scope of the job. Council Members George, Samuelson, and Dingler had no report. XII. DEPARTMENT REPORTS Parks and Public Works Director Matt Samitore reported that: • There are several paving projects that will begin soon. Knife River has asked for accommodations for the Hwy. 99 project. That paving project will begin after Labor Day. The Haskell project will be completed before the start of the school year. • RVSS is digging up some old pipes on Hazel Street. These are 27 feet down and are some of the oldest infrustructure in Central Point. Police Chief Kris Allison: • Read her presentation to the National Law Enforcement Seminar that she presented in hopes of receiving a grant. She appreciated the Mayor attending to help support the department. • The D.A.R.E Cruise is August 91". It is always nice to have the Elected Officials participate in city events. • This was a good week for the Department. They received nice emails and letters from citizens for a couple of officers who had gone above and beyond in their duties. Finance Director Bev Adams reported on the progress of the Long Term Financial Plan. They received the first draft. They hope to have this process done in September. Auditors will be here the first week of August to begin that process. Staff is working on getting all the information together. Community Development Director Tom Humphrey reported that Rich Carrera has been here this week developing branding images for Twin Creeks, Bobbios and the Creamery. He included some images for the City that could be used for the new website. Interim City Attorney Darrell Jarvis stated that Sydnee Dryer is on vacation this week. XIII. EXECUTIVE SESSION -None CAP081414 Page XIV. ADJOURNMENT Rick Samuelson moved to adjourn, Kelly Geiger seconded, all said "aye" and the Council Meeting was adjourned at 8:55 p.m. The foregoing minutes of the July 24, 2014, Council meeting were approved by the City Council at its meeting of August 14, 2014. OF milll Mayor Hank Williams ATTEST: City Recorder Return to Agenda CAP081414 Page A CENTRAL POINT ADMINISTRATION DEPARTMENT 140 South 3rtl Street Central Point, OR 97502 (S41) 664-7602 www.rentra l pointoregon.gov STAFF REPORT August 14", 2014 AGENDA ITEM: Consent Agenda Meeting Cancellation STAFF SOURCE: Deanna Casey, MMC, City Recorder BACKGROUND/SYNOPSIS: 1. August 24, 2014: Staff has reviewed the items for future City Council Agenda and recommends cancelling the August 24, 2014 meeting. There are no pressing items that need to come before the Council to hold a second meeting in August. 2. September 25, 2014: Staff recommends cancelling the September 25, 2014 City Council meeting. The Mayor, City Manager and City Recorder will be attending the League of Oregon Cities Conference in Eugene. Staff will schedule any future items to reflect the cancellation of these dates. 3. November 27, 2014: The second meeting date in November falls on Thanksgiving Day. If necessary for a second meeting during this month staff will make arrangements. 4. December 25, 2014: The second meeting date in December falls on Christmas Day. If a second meeting is needed staff will make arrangements and return to Council with a specific date. FISCAL IMPACT: There are no fiscal impacts to cancelling these two meetings. ATTACHMENTS: None RECOMMENDATION: Approval of Consent Agenda. PUBLIC HEARING No SUGGESTED MOTION: I move to approve the Consent Agenda as presented. CAP081414 Page 10 Event Name Drive Out Drugs Recovery Walk Event Date Saturday, September 27" Event Time Setup Starts at 6:00 am ; Event 9:00 am —4:00 pm ; Cleanup Ends at 7:00 pm Location Robert Pfaff Park Attendance Planning for 400 (but is first time event) Coordinator Foundations for Recovery (Grant Money from the Crater Foundation) Insurance On file Purpose Event centers on educating young people and families on the dangers of substance abuse and the hope found in recovery. Family friendly event, with free entry. Activities Live Music Food Vendors Merchandise Vendors Information Booths Raffles Jump Houses Dunk Tank Bands 3 bands will play, music starts at 10:00 am. Sound will be provided by the band Nail. Bands include: Nail (Christian Contemporary), Shely Kirsten (Soft Contemporary) and Hollograms (Country). Map Attached. No street closures are requested bythe organizations, all activities occur within the park. Price Quote 495 (This quote is based on the fee structure for events and includes 2 gazebos for 13 hours, with amplified sound. Access to restrooms and electricity is available.) Notes As a first time event, it is hard to know what the attendance will be. It could easily attract 2,000 or more event attendees, as it is targeting families, has free entertainment, and has backing from the Crater Foundation. Also occurring on this day is the "Out of the Darkness Walk", organized by AFSP (American Foundation for Suicide Prevention) which aims to raise money and awareness for suicide prevention. This includes a walk through the neighborhood. Location: Twin Creeks Park Times: 7:00 am — 1:00 pm Anticipated Attendance: 300 (As of 8/5/14 have 49 walkers signed up.) CAP081414 Page 11 Foundations for Recovery 33 North Central Ave. Ste. 419 Medford, OR 97501 541-245-4673 (HOPE) E -Mail: dgould@lovefoundations.com August 5, 2014 To the Central Point City Council The following is an outline of our intention for the 2014 Drive Out Drugs Recovery Walk/Festival to be held on September 27"' from gam-4pm at Pfaff Park in Central Point. We received a grant from Crater High School to sponsor an event geared toward educating the youth of our community about the dangers of drugs and alcohol, and to provide information regarding addiction and addiction services. We want to "put a positive face on recovery" and demonstrate the appeal of a drug-free life to young and old alike. The Festival will include no more than 5 food vendors, 2 tables for the sound booth, 12 recovery -oriented booths, 6 stations with free activities for kids and teens (i.e. an Instrument "Petting Zoo", face -painting, and other activities geared toward promoting drug and alcohol - free FUN!), and up to 15 local vendors with goods and services to offer. The Festival will officially begin at 9:ooam; set-up will begin at 6:ooam. The Festival will officially end at 4:00pm; tear -down will be completed at 7:oopm, with all trash removed and clean-up finalized by no later than 7:00pm. The Festival will include 3 bands, with music starting at 10:00. Each band will play for up to an hour and a half, with breaks in between. Our MC will be Paul Aragon, a local author and recovery expert and one of the Recovery Coaches at the Foundations for Recovery. We will be having a raffle with prizes given away every half hour. The bands are all local, with sounds ranging from rock to contemporary. The names are: Nail, Shelley Kristen and the Out of the Grotto Band, and Hollogram. We will be using equipment provided by the band Nail and we will be using our own sound engineers. We are looking forward to making this an annual event. This year's event will also kick off our new Youth division and help to fund training and Recovery Coaching for youth ages 11-17 in our community who are trapped in addiction. We are passionate about making sure that every young person has the opportunity to find help and hope for a life of freedom! Weare asking you to support us in making this a successful community event that will impact our families in a positive way. Thank you for allowing us to present our request! The Foundations for Recovery A 501c3 Community-based Non-profit Organization Awarded `Best of Medford 2014" for Drug Abuse & Addiction Treatment and Prevention Crater Community un Grant Recipient for 2014 CAP081414 Page 12 DRIVE OUT DRUGS RECOVERY WALK PFAFF PARK - SEPT 27, 2014 ❑ ❑ Opl "G4REA t O O ❑❑ ,. Business/Vendor Booths Recovery Oriented Booths ❑ Children/Youth Booths ❑ Sound and Music ❑ Food Booths 1° CAP081414 Page 13 "Putting a Positive Face on Recovery" 2014 DRIVE OUT DRUGS RECOVERY WALK oruPxovag 4 Family Fun & Music Festival f Saturday September 27, 2014 9:ooam to 4:oopm—Pfaff Park /Central Point, OR food vendors, local merchants and information regarding drug & alcohol education, treatment and prevention Musical Guests at the Festival: shyr niv0at0fd1.,G" Jonal Alcohol Friday September 26, 2014-7:oopm Softball Game -US Cellular Fields "Battle of the Badges" Police us. Fire Join us at US Cellular Fields for a family fun night including raffle prizes, free hot dogs & drink and silent auction Sponsored by j Your logo here!!! �'Onya�Alintj Oriel"'' &SPAS 7bu,�d�nrr %r',�ecovcry �/ August 4, 2014 Foundations for Recovery "Relapse Doesn't Have I a Happen" 33 North Central Ave. Ste. 419 Medford, OR 97501 E -Mail: deould(allovefoundations cora 541 -245 -HOPE (4673) "Putting a Positive Face on Recovery" 2014 DRIVE OUT DRUGS RECOVERY WALK Family Fun & Music Festival Saturday September 27, 2014 9:00am to 4:00pm—Pfaff Park Dear Friend of the Foundation; I would like to take a moment of your time with this correspondence to request your help supporting our upcoming cause entitled "2014 Drive Out Drugs Recovery Walk" which will be held on Saturday September 27, 2014 at Pfaff Park in Central Point, Oregon. Our objective is to raise awareness about the increasing coneem regarding addiction amongst the youth of our community. Our hope is that this year will be the first of many upcoming festivals in years to come as we join together in providing information to families, schools, churches and businesses in our community about drug & alcohol abstinence, education, treatment, prevention and recovery. This event will help raise money to fund development projects critical to the survii al of those suffering in addiction, including adult one on rine counseling, out-patient treatment, }ouch mentoring, family support and basic skills mining. The Foundations for Recovery Educational Grant This past spring the Foundations for Recovery received grant funding through The Community 101 Project and Crater High School to hold a festival type fair in Central Point to bring awareness of the rampant problems that drugs and alcohol addiction can bring. The fair is also designed to educate families to discuss with the youth of our community the negative effects of addiction. Not only do we want to embrace the education behind addiction, but also the joys of what life can bring after addiction. In others words, our desire is to show the community the "positive face of recovery", The fair/festival will include a family type environment offering games for the children, great food from local vendors, and music by some of our local bands. How can I help? We would like for your business to sponsor a booth at the festival and present information regarding the services that you provide within our community. Or if you would like to contribute to this worthy cause, you may make an online donation at www.lovefoundations.com You may also mail a donation in the addressed envelope enclosed. Thank you for taking the time to read about our first annual Drive Out Drugs Recovery Walk. We appreciate your considering our request. If you would like more information about this initiative, please contact me at 541-245A673 (HOPE). Sincerely, Douglas Gould Executive Directr Foundations for Recovery CAP081414 Page 15 7roune(a6"onr ,,,� Gold Sponsorship: $ 1000.00 Foundations for Recovery "Relapse Doesn't Have I'd Happen" 33 North Central Ave. Ste. 419 Medford, OR 97501 E -Mail: c1gould(a),lovefoundations com 541 -245 -HOPE (4673) FFR Sponsorship Opportunities Gold Sponsorship includes acknowledgement in the Festival Program, Business Logo on the Banner which will be displayed over Pine Street, Festival Posters, acknowledgement during the Battle of the Badge Softball Game on Friday Night September 26th, Business Logo on Music Festival signage, acknowledgement in the FFR Monthly Newsletter (500 subscribers), Facebook Advertising, weekly e-mail newsletters (1200 subscribers) and advertising through media (including newspaper, radio and TV.) Silver Sponsorship: $ 500.00 Silver Sponsorship includes acknowledgement in the Festival Program, Business Logo on Music Festival signage, acknowledgement in the FFR Monthly Newsletter (500 subscribers), Facebook Advertising, weekly e-mail newsletters (1200 subscribers) and advertising in the newspaper. Bronze Sponsorship: $ 250.00 Bronze Sponsorship includes acknowledgement in the Festival Program, the PER Monthly Newsletter (500 subscribers), and the weekly e-mail newsletter (1200 subscribers) Individual Sponsorship: $ 100.00 Individual Sponsorship includes acknowledgement in the Festival Program Raffle Prizes Donations: "Battle of the Badge" Softball Game Raffle Prizes Donations includes acknowledgement in the Festival Program Dear Potential Sponsor: 'This is an incredible opportunity to join with the Foundations for Recovery in reaching the youth of our community regarding the importance of drug & alcohol education, abstinence and recovery. Please consider sponsoring our event and if you need any further information please feel free to contact me at 541-245-4673 (HOPE) Sincerely, Douglas Gould Executive Director Foundations for Recovery CAP081414 Page 16 Foundations for Recovery "Relapse Doesn't Have To Happen" 33 North Central Ave. Ste. 419 Medford, OR 97501 E -Mail: dgould(o),lovefoundafions.com 541 -245 -HOPE (4673) 7roan�aGam ../ for Remuery FFR Vendor Booth Opportunities Festival Date: Saturday September 27, 2014 — 9:00am to 4:00pm New Vendor I will need electrical power for my booth Please fill out vendor registration form and return with entry fee Mailing City Please describe what your booth will be providing and any information we may need to know: Make Check Payable To: Foundations for Recovery Mail To: Foundations for Recovery Booth Registration -Recovery Fair 33 North Central Ave. Suite #419 Medford, OR 97501 Fees: $ 75.00 Food Vendors $ 10.00 Electrical (110 voltage only) $ 50.00 Commercial Vendors $ 40.00 Non -Profit Vendors Total: Please attach harmless liability release agreement to your application. If you have any questions regarding the festival/event please feel free to contact the offices of the Foundations for Recovery at 541-245-4673. Sincerely, Douglas Gould Executive Director Foundations for Recovery CAP081414 Page 17 1 / Foundations for Recovery "Relapse To Napped' 33 North Central Ave.e. Ste. Ste. 41919 Medford, OR 97501 \ E-Mail: t1gould(mlovefoundations corn 541-245-HOPE (4673) 7roun�afionr ✓ ,or 2erwer�"/ FFR Vendor Booth Opportunities Festival Date: Saturday September 27, 2014 — 9:00am to 4:00pm Deadline for booth registration — September 13 2014 *payment reserves your booth location at the festival *make your payment payable to Foundations for Recovery Fees: $ 75.00 Food Vendors $ 10.00 Electrical (110 voltage only) $ 50.00 Commercial Vendors $ 40.00 Non -Profit Vendors Rules: • You must present with your application copy of your insurance liability • Booth Sizes are 12x12 -If you need additional space you will need to purchase two booth locations • Booth set up/construction/placement may be started at 6:00am to 7:00am on Saturday September 27th • Booths must be manned and operative by 9:00am • Booth must be dismantled by 7:00pm on Saturday September 27`" • Booth locations will be marked and vendors will be notified of their placement via e-mail correspondence • Commercial grade electrical cords to access power sources must be provided by the businesses • Trash receptacles must be provided by the vendors • If you serve food or beverage of any kind, you must contact the Health Dept. to insure you are in compliance with temporary restaurant regulations. (541)-774-8206 If you need further information please feel free to contact Festival Director Doug Gould or Susan Szczesniak at the offices of the Foundations for Recovery at 541-245-4673 (HOPE). Thank you for joining us for the 2014 Drive Out Drugs Recovery Walk Festival CAP081414 Page 18 The Foundations for Recovery is a community faith - based organization that exists for the purpose of changing lives isolated by the grip of substance abuse, offering help and hope through personalized one on one Recovery Coaching. By promoting recovery from alcohol and other drug addiction through advocacy, education and service, FFR strives to end discrimination surrounding addiction and recovery, open new doors and remove barriers to recovery, maintain and sustain recovery regardless of the pathway, all the while ensuring that all people in recovery, and people seeking recovery, are treated with dignity and respect. "Our mission is to provide recovery coaching which leads to a transformation of men and woman lost in addiction to restore their lives and to serve as a pathway of recovery for the community. " Recovery Coaching is a one on one peer mentoring approach that honors the differences between individual experiences, lifestyle choices and cultural backgrounds. Recovery Coaching means that YOU, the participant are in charge of your own recovery, and that we are there to provide help and encouragement. • Peer Mentoring Recovery Coaching • Addiction Treatment & Prevention • Individual & Group Counseling • Marital/Couples Counseling • Out -Patient Services • Basic Life Skills • Non -Substance Abuse Counseling • 12 Step Programs (AA, NA and CR) • Grief/Depression/Stress Counseling • Parenting Support Group '•� HS POM1oma 4 141'Im�4 . The Foundations for Recovery is located between Main St. and 6th St. on Central Avenue in the Historic Woolworth Building. 'n for'.�¢couery � CAP081414 Page 19 'Foundations ��► for Wecovet 'Rp%apie Do= f Nave 7o Nappen M N. Cenfm[Ava SWe #4f9 46d, OR ?1 9750f 54+-245-4673 NOM VUfli fNE• "M.looabW%460W..urn, Return to Agenda Doug Gould Susan Szczesniak Ken Kovalyak : Paige Harrison Doug Gould, Susan Szczesniak, Tiffany Dailey, Ken Kolvalyak, Paige Harrison, James Driskell, Mark Whit- ing, Richard Stever, Philip Broesamle, Nick Weaver, Shawana Siewell, Barbara Gould, John Sanders, Joshua Teska (1), Paul Aragon, Joseph Nicholas, Debbie Andler, Derrick Kinley, Ryan Fields, Amber Fields, Mike Mabry, Lila Hammon, Krisfie Lachenmeter, Mary Kay Powell, Seth Johnson (1), Tamara Donaldson, Gil Pugliano, Kelly Burrows, Jeanette King, Scotty White (J). (1) denotes Intent Dave Faccimor Victoria Fortino Brad Bills Matthew McAuliffe Mike Mabry Bill Bumgardnw I Congratulation on walking through the doors of FFA S e eking support in reaching you recovery goals. We know how difficult it is first and foremost to take a step to seek freedom from the pain of addiction. As you continue to work you program with you individual recovery coach please know that we are here to support you and not In, you, that is up to you. The suggestions that you recovery coach offers during you onebn one peer mentoring times is just that, suggestions. However, we know that if you allow us to help you clear away the damaged debris and wreckage of you past we can provide you a freedom filled present and a hope for the future. We have a plan and with you com- mitment you life can be restored. `God Bless, Doug CAP081414 Page 20 0 a F u C m o w F� 0 l eo c Em o 0 E � L ry, � m m y > .. T� E E E� o c Es A w y o g p t� v w3 w o ew T � C e Et �'o 6 c L m N 'L G c w U U z .m- E in Resolution Refinance Outstanding Obligations CAP081414 Page 21 Staff Report CENTRAL POINT To: Mayor & Council From: Bev Adams, Finance Director Date: August 14, 2014 Subject: Authorizing debt refinance Finance Department Bev Adams, Finance Director Background: Due tc favorable interest rates, the City is refinancing three previously issued debt obligations for an estimated savings of over sic.7,coo, including fna ncing costs. The refinance will incorporate the City's 2004, 2007, and 2oo8 issued debt into one Series 2014. The total amount of this borrowing is s2,698,20o with an interest rate of 2.4g^/a. Included with this staff report is: i. The resolution authorizing the City and staff to enter into a financing agreement z. A draft copy of the financing agreement B. The 2014 Refunding schedule provided by the City's bond financial advisor The financing agreement is in "draft" copy until we receive final installment numbers (see pg. 2) which will be available at the earliest, Friday, August 15, 2014. The refunding schedule provides detail and amounts of all the issues being refunded as well as issuance costs and savings acquired through the Series 2014 issue. Although we cannot provide absolute numbers until the issue is finalized, the loan amortization schedule (shown on the following page) is very close (if not exact) to what the new debt payments will be. CAP081414 Page 22 Loan Amortization Date Funding Payment Interest Component Principal Component Principal Balance 8/19/2014 2,693,200.00 2,693,200.00 12/1/2014 72,000.53 19,000.53 53,000.00 2,640,200.00 6/1/2015 32,870.49 32,870.49 - 2,640,200.00 12/1/2015 553,870.49 32,870.49 521,000.00 2,119,200.00 6/1/2016 26,384.04 26,384.04 - 2,119,200.00 12/1/2016 561,384.04 26,384.04 535,000.00 1,584,200.00 6/1/2017 19,723.29 19,723.29 - 1,584,200.00 12/1/2017 298,802.49 19,723.29 279,079.20 1,305,120.80 6/1/2018 16,248.75 16,248.75 - 1,305,120.80 12/1/2018 306,183.85 16,248.75 289,935.10 1,015,165.70 6/1/2019 12,639.06 12,639.06 - 1,015,185.70 12/1/2019 170,031.66 12,639.06 157,392.60 857,793.10 6/1/2020 10,679.52 10,679.52 - 857,793.10 12/1/2020 171,027.12 10,679.52 160,347.60 697,445.50 6/1/2021 8,683.20 8,683.20 - 697,445.50 12/1/2021 176,344.60 8,683.20 167,661.40 529,784.10 6/1/2022 6,595.81 6,595.81 - 529,784.10 12/1/2022 176,614.51 6,595.81 170,018.70 359,765.40 6/1/2023 4,479.08 4,479.08 - 359,765.40 12/1/2023 181,175.98 4,479.08 176,696.90 183,068.50 6/1/2024 2,279.20 2,279.20 - 183,068.50 12/1/2024 185,347.70 2,279.20 183,068.50 0.00 Totals 2,693,200.00 2,993,365.43 300,165.43 2,693,200.00 The new Series 2014 retains a similar payment structure to the original three series, but because of savings the original payoff date has been reduced by one year. Recommended Action: 10 c a That Council approve the attached resolution authorizing full faith and credit borrowings to refinance Q outstanding obligations for the City. c c a K CAP081414 Page 23 RESOLUTION NO. A RESOLUTION OF THE CITY OF CENTRAL POINT, OREGON AUTHORIZING FULL FAITH AND CREDIT BORROWINGS TO REFINANCE OUTSTANDING OBLIGATIONS FOR THE CITY RECITALS: A. The City previously issued a loan agreement dated September 29, 2004 related to the City's Full Faith and Credit Obligations, Series zooy (the "2004 Financing") to finance constructing, furnishing and equipping a new Council Chambers and new City Hall offices which is located on the second floor above the new City of Central Point/Jackson County Library (the "2004 Project"), a financing agreement dated June 6, zoo? (the "2007 Financing") to finance modifying intersections related to Upton Road, Scenic Avenue, North io" Street, and North 3rd Street, extending Upton Road to provide access to planned development, and purchasing rights-of- way related to these improvements (the "zoo? Project"), and a financing agreement dated September 4, 2008 (the "2oo8 Financing', and collectively with the 2004 Financing and 2007 Financing the "Outstanding Borrowings") to finance designing and constructing the Don Jones Memorial Park (the "2oo8 Project" and collectively with the 2004 Project and 2007 Project, the "Projects"); and B. Oregon Revised Statutes ("ORS") Section 271.390 and 287A.360 -287A.380 authorizes Oregon governments to refund outstanding borrowings; and C. Current interest rates may be lower than the interest rates that are payable on the Outstanding Borrowings and the City may be able to reduce debt service costs or favorably restructure its Outstanding Borrowings by refunding all ora portion of the Outstanding Borrowings; THE CITY OF CENTRAL POINT RESOLVES Section 1. Determination of Need. The City Council hereby determines that the Projects were needed at the time they were financed and thatthey remain needed. Section 2. Financing Authorized. The City is hereby authorized to enter into one or more financing agreements (the "Financing Agreements") to refinance all or any portion of the Projects pursuant to ORS Section 272.390 and the relevant provisions of ORS Chapter 287A. The Financing Agreements may be issued in an amount that is sufficient to refund all or any portion of the Outstanding Borrowings and to pay costs related to issuing the Financing Agreements and refunding the Outstanding Borrowings, including paying any prepayment premium. Section 3. Delegation. The Mayor or the City Manager, or the person designated by the Mayor or the City Manager to act on behalf of the District under this resolution (each of whom CAP081414 Page 24 - Pagel is referred to in this resolution as a "City Official") may, on behalf of the City and without further action bythe Council: a. Select the Outstanding Borrowings to be refunded; b. Determine the final principal amount, interest rates, payment dates, maturity dates, prepayment rights and all other terms of the Financing Agreements; C. Negotiate, execute and deliver notes to evidence amounts due underthe Financing Agreements; d. Select Key Government Finance, Inc. or another commercial bank or investor with which to negotiate, execute and deliver the Financing Agreements. Subject to the limitations of this Resolution, the Financing Agreements may be in such form and contain such terms as the City Official may approve; e. Enter into additional covenants for the benefit of the purchasers of the Financing Agreement which the City Official determines are desirable to obtain more favorable terms forthe Financing Agreements; f. Enter into escrow deposit agreements and take any other actions to prepay any of the Outstanding Borrowings; g. Engage the services of escrow agents and any other professionals whose services are desirable forthe financing; h. Covenant for the benefit of the owner of the Financing Agreements to comply with all provisions of the Internal Revenue Code of 1986, as amended (the "Code") which are required for the interest paid under the Financing Agreements to be excluded from gross income for federal income tax purposes; i. If the United States Congress authorizes federal interest rate subsidies, such as the subsidies that were authorized for "Build America Bonds," and those subsidies reduce the cost of the Financing Agreements, issue the Financing Agreements under these provisions, apply for and receive federal interest rate subsidies and covenant to take any actions necessaryto maintain those subsidies; j. Designate each of the Financings Agreements as a "qualified tax-exempt obligation" pursuant to Section 26S(b)(3) of the Code, if applicable; CAP081414 Page 25 — - - - Page 2 — - -— k. Execute and deliver any other certificates or documents and take any other actions which the City Official determines are desirable to carry out this Resolution. Section 4. Security. The Financing Agreements may constitute unconditional obligations of the City, which are payable from all legally available funds of the City. The City Official may pledge the City's full faith and credit and taxing power within the limitations of Sections 1i and ub of Article XI of the Oregon Constitution pursuant to ORS 287A.315, Section 5. Effective Date. This resolution is effective immediately upon adoption. Passed bythe Council and signed by me in authentication of its passage this i4th day of August, 2014. City of Central Point Jackson County, Oregon Mayor Attest: City Recorder CAP081414 Page 26 - - Page 3 FINANCING AGREEMENT $[2,693,2001 City of Central Point, Oregon 2014 Financing Agreement (Refunding Various Projects) Dated August 20, 2014 This 2014 Financing Agreement (Refunding Various Projects) is entered into between City of Central Point, Oregon (the "City") and Key Government Finance, Inc. (the "Lender") as of this 20th day of August, 2014, 1. Definitions. For purposes of this Financing Agreement, the following capitalized terms shall have the following meanings, unless the context clearly requires otherwise: "Banking Day" means any day except a Saturday, a Sunday or any other day on which commercial banks in Oregon are authorized or required ky law to close. "City" means City of Central Point, Oregon. "City Official" means the Finance Director, the City Manager or the person designated by the either of those individuals to act as City Official under the Resolution. "Closing Date means .August 20, 2014. "Code" means the United States Internal Revenue Code of 1996, as amended. "Default Rate means the Interest Rate plus 400 basis points (4.00%). "Event of Default" means the occurrence of any of the following: (i) a failure to pay any principal or interest that is required to be paid udder this Financing Agreement; (ii) a final determination by the Internal Revenue Service that interest on this Financing Agreement is includable in gross income under the Code; (iii) a failure by the City to comply with any of its obligations or to perform any of its duties under this Financing Agreement, other than a failure described in clauses (i) or (ii) of this definition, which failure continues and is not cured for a period of more than 60 days after the Lender has made written demand on the City to care such failure. "Financing Agreement" means this 2014 Financing Agreement (Refunding Various Projects). "Fiscal Year" means the period beginning on July 1 of each year and ending on the next succeeding June 30, or as otherwise defined by Oregon Law. "Government Obligations" means direct obligations of the United States, or obligations the principal of and interest on which are fully and unconditionally guaranteed by the United States. Page I - Financing Agreement CAP081414 Page 27 23559632038760 AGML "Interest Rate" means a fixed annual interest rate of Two and Forty -Nine Hundredths Percent (2.49%) per annum, calculated on the basis of [a 360 -day year consisting of twelve 30 -day months]. "Lender" means Key Government Finance, Inc., or its successors. "Maturity Date" means December 1, 2024. "Outstanding Balance" means, at any time, the Principal Amount, loss the sum of all principal repayments that have been received by the Lender. "Principal Amount"means $[2,693,200]. "Projects" means the Projects defined in the Resolution. "Resolution" means the City's Resolution No . adopted August 14, 2014, authorizing this Financing Agreement. "Securities Act" means the Securities Act of 1933, as amended. "Special Counsel" means Hawkins Delafield & Wood LLP. 2. Loan. 2.1. The Lender shall advance the Principal Amount to the City on the Closing Date. 2.2. The Outstanding Balance shall bear interest at the Interest Rate from the date of this Financing Agreement. Interest is payable semiannually on June 1 and December 1 of each year, commencing December 1, 2014. he City shall repay the Principal Amount and the interest in the following installments on the following dates: Date Payment Interest Component Principal Component Principal Balance 12/1/2014 6/1/2015 12/1/2015 6/1/2016 12/1/2016 6/1/2017 12/1/2017 6/1/2018 12/1/2018 6/1/2019 12/1/2019 6/1/2020 Page 2 - Financing Agreement CAP081414 Page 28 2355963.2038760 AGAIT 12/1/2020 6/1/2021 12/1/2021 6/1/2022 12/1/2022 6/1/2023 12/1/2023 6/1/2024 12/1/2024 2.3. All unpaid principal, plus accrued interest, shall be paid no later than the Maturity Date. 3. Prepayment. 3.1. The City may prepay the Outstanding Balance in whole, plus interest accrued to the prepayment date, on any Banking Day. Prepayments on or before August 19, 2017 are subject to a prepayment fee equal to 1.0% of the Outstanding Balance. Prepayment will require the City to give 60 days' written notice to the Lender. 4. Security for Financing Agreement. Pursuant to ORS 287A.3 15. the City hereby pledges i3,g full faith and credit and taxing power within the limitations of Sections li and l lb of Article XI of the Oregon Constitution to pay the principal and interest due to the Lender under this Financing Agreement. The City shall pay the amounts due under this Financing Agreement from any and all of its legally available taxes, revenues and other funds. This pledge of the City's full faith and credit and taxing power shall not entitle the Lender to any lien on, or pledge of, specific properties or revenues of the City. 5. Accounting and Billing. Upon written request by City, the Lender shall provide the City with a written accounting of all payments and other transactions relating to this Financing Agreement semi-annually. The Lender shall send the City a bill for the amount due on each Financing Agreement payment date not later than seven (7) Banking Days prior to that payment date. 6. Use of Financing Agreement Proceeds. The City shall apply the amount it receives under this Financing Agreement solely as described in the Resolution to refinance the Projects and pay costs related to this Financing Agreement. 7. Tax -Exemption, 7.1. The City agrees to comply with all representations in the Tax Certificate for this Financing Agreement. The City further covenants for the benefit of the Lender to comply with all provisions of the Code that are required for interest paid pursuant to this Financing Agreement to be excluded from gross income for federal income tax purposes. Page 3 - Financing Agreement CAP081414 Page 29 2355963.2039760 AGbn 7.2. [The City hereby designates this Financing Agreement as a "qualified tax-exempt obligation" under Section 265(b) of the Code.] 7.3. Interest paid pursuant to this Financing Agreement is exempt from State of Oregon personal income taxes. S. Representations of the City. By executing this Financing Agreement in the space provided below, the City represents to the Lender that: 8.1. The City is duly created and existing under the laws of the State of Oregon, has all necessary power and authority to enter into this Financing Agreement and perform its duties under this Financing Agreement. 8.2. The adoption of the Resolution, the execution of this Financing Agreement and the performance of the City's obligations under this Financing Agreement does not conflict in any material respect with, or constitute a material breach of or default under, any law, court decree, administrative regulation, resolution or other agreement to which the City is a parry or by which it is bound. 8.3. There is no action, suit, proceeding or investigation at law or in equity before or by any court or governmental agency having jurisdiction over the City that is pending or, to the best of the knowledge of the City, is threatened against the City to restrain or enjoin the execution of this Financing Agreement, the adoption of the Resolution, or the collection and application of the funds as contemplated by the Resolution and this Financing Agreement, that, if such matter were adversely decided against the City would, in the reasonable judgment of the City, have a material and adverse effect on the ability of the City to pay the amounts due under this Financing Agreement. 8.4. The City hereby certifies, recites and declares that all things, conditions and acts required by the Constitution and Statutes of the State of Oregon and by this Financing Agreement to exist, to have happened and to have been performed precedent to and in the execution and the delivery of this Financing Agreement, do exist, have happened and have been performed in due time, form and manner, as required by law, and that this Financing Agreement is a valid and binding obligation of the City that is enforceable against the City in accordance with its terms, except to the extent that enforceability may be limited by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other laws affecting creditors' rights generally; (ii) the application of equitable principles and the exercise of judicial discretion in appropriate cases; (iii) common law and statutes affecting the enforceability of contractual obligations generally; and (iv) principles of public policy concerning, affecting or limiting the enforcement of rights or remedies against governmental entities such as the City. 9. Covenants of the City. The City covenants for the benefit of the Lender that: Page 4 - Financing Agreement CAP081414 Page 30 2355963 2 038760 AGMT 9.1. While this Financing Agreement is in effect and until full and final payment of the Outstanding Balance and all accrued and unpaid interest and fees the City shall provide the Lender with: (a) A complete copy of the City's audited annual financial statements for each Fiscal Year, within 180 days following the end of each Fiscal Year. (b) A complete copy of the City's budget for each Fiscal Year promptly after it is adopted by the City Council. (c) Such other information as the Lender may, reasonably request. 10. Fees, Costs and Expenses. 10.1. Lender Fees and Charges. (a) The City will pay up to $2,000 for fees and costs of the Lender's counsel in connection with this Financing Agreement. (b) The Lender will not charge the City any other fees or costs in connection with this Financing Agreement. 10.2. Costs of Enforcement. If either party incurs an)' expenses in connection with enforcing this Financing Agreement, or if the Lender takes collection action under this Financing Agreement, the losing party shall pay to the prevailing party, on demand, the prevailing party's reasonable costs and reasonable attorneys' fees, whether at trial, on appeal, in any bankruptcy or insolvency proceeding or otherwise, including any allocated costs of in- house counsel 10.3. Other Fees and Costs. The City shall pay the Fees and costs of Special Counsel, and any othenexpenses and costs that the City incurs in connection with this Financing Agreement. 11. Default. 11.1. Upon the occurrence of any Event of Default the Lender may exercise any remedy available at law or in equity. However, the amounts due from the City under this Financing Agreement shall not be subject to acceleration. 11.2. Upon the occurrence and continuation of an Event of Default described in clause (i) of the definition of "Event of Default," the due but unpaid principal amount shall bear interest at the Default Rate until such Event of Default is remedied. Upon the occurrence and continuation of an Event of Default described in clause (i) of the definition of "Event of Default" for longer than 90 days, the Outstanding Balance shall bear interest at the Default Rate until such Event of Default is remedied. Page 5 - Financing Agreement CAP081414 Page 31 2355963.2038760 AG61T 11.3. All rights, powers and remedies of the Lender maybe exercised at any time after the occurrence of an Event of Default, are cumulative and shall not be exclusive, and shall be in addition to any other rights, powers or remedies provided by law or equity. 11.4. The Lender may waive any Event of Default, but no such waiver shall extend to a subsequent Event of Default. 12. Defeasance. 12.1. The City shall be obligated to pay any portion of the Outstanding Balance defeased pursuant to this Section solely from the money and Government Obligations deposited in escrow in accordance with this Section with an escrow agent or independent trustee as provided in this Section, and the City shall have no further obligation to make those payments from any source except the amounts deposited in the escrow. This Financing Agreement shall be deemed defeased if the City: (a) irrevocably deposits money or noncallable Government Obligations in escrow with an independent trustee or escrow agent that are calculated to be sufficient for the payment of the portion of the Outstanding Balance that is to be defeased without reinvestment; and (b) files with the escrow agent or trustee a verification from an independent, certified public accountant to the effect that calculation, described above, is correct. 13. Conditions to the Obligations of the Lender. 13.1. The Lender may refuse to advance funds under this Financing Agreement unless the Lender has received: (a) An opinion of Special Counsel to the effect that: (i) the Financing Agreement is a valid and legally binding full faith and credit obligation of the City that is enforceable against the City in accordance with its terms subject to customary exceptions; (ii) inteiest paid pursuant to this Financing Agreement is excludable from gross income under the Code; and (iii) interest paid pursuant to this Financing Agreement is exempt from State of Oregon personal income tax. (b) The certificate of a City Official to the effect that: (i) There is no action, suit, proceeding or investigation at law or in equity before or by any court or governmental agency having jurisdiction over the City that is pending or, to the best of the knowledge of the City, is threatened against the City to restrain or enjoin the execution of this Page 6 - Financing Agreement CAP081414 Page 32 2355963 2 038760 AGbrr Financing Agreement, the adoption of the Resolution, or the collection and application of the funds as contemplated by the Resolution and this Financing Agreement, that, if such matter were adversely decided against the City, would, in the reasonable judgment of the City, have a material and adverse effect on the ability of the City to pay the amounts due under this Financing Agreement. (ii) The adoption of the Resolution and the execution and delivery of this Financing Agreement do not and will nor conflict in any material respect with or constitute on the part of the City. a breach of or default under any law, charter provision, court decree, administrative regulation, resolution or other agreement or instrument to. which the City is a party or by which it is bound. (c) Such additional legal opinions, certificates, proceedings, instruments or other documents as the Lender, its counsel or Special Counsel may reasonably request to evidence compliance by the City with the legal requirements for execution and delivery of this Financing Agreement and the due performance or satisfaction by the City of all agreements then to be performed and all conditions then to be satisfied by the City. 14. Disclosure; Assignment 14.1. No official statement or other disclosure document has been prepared in connection with this Financing -igrcemcnt and the City has no obligation in connection with this Financing Agreement to pro;•ide any disclosure regarding operating information or material events to the ,Municipal Securities, Rulemaking Board or any dissemination agent. The City is obligated to provide information to the Lender in connection with this Financing Agreement only as specifically Stated in this Financing Agreement, 14.2. The Lender may not assign its rights and obligations under this Financing Agreement without the prior, written consent of the City. 14.3. The City may not assign its rights and obligations under this Financing Agreement without the prior written consent of the Lender. 15. Jury Waiver. The City and the Lender each agree to irrevocably waive all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to the Financing Agreement or the actions of the City or the Lender in the negotiation, administration, performance or enforcement thereof. 16. Miscellaneous. 16.1. Any notices required to be given pursuant to this Financing Agreement shall be given to the following addresses: Page 7 - Financing Agreement CAP081414 Page 33 23559632038760 AGMT City', City of Central Point 140 South Third Street Central Point, Oregon 97502 Arm.: Bev Adams, Finance Director Telephone: 541-664-3321,x226 Lender. Key Government Finance, Inc. 1000 S. McCaslin Blvd. Superior, Colorado 80027 Arm.: Municipal Operations Manager Telephone: 720-304-1285 16.2. All representations, warranties, and agreements contained in this Financing Agreement shall survive the execution, delivery and payment of this Financing Agreement. This Financing Agreement shall constitute a contract between the City and the Lender. The Lender's extension of credit hereunder is expressly made in reliance on such contract. : 16.3. This Financing Agreement shall. be governed and interpreted in accordance with the laws of the State of Oregon. 16.4. The Lender and the City each irrevocably consents to the personal jurisdiction of the state and federal courts located in the State of Oregon in any action brought under this Financing Agreement, and in any action based upon the transactions encompassed by this Financing Agreement, whether or not based in contract. Venue for any such action shall be in Jackson County, Oregon. 17. Severability and Waivers. If any part of this Financing Agreement is not enforceable, the rest of the Financing Agreement may be enforced. The Lender retains all rights, even if it makes a loan after default. If the Lender waiN es a default, it ma3. enforce a later default. Any consent or waiver under this Financing Agreement must be in writing. 18. Counterparts. This Financing Agreement may be executed simultaneously in several counterparts, each of which shall be an original and all of which shall constitute one and the same agreement. Page 8 - Financing Agreement CAP081414 Page 34 2355963 2 038760 AGMT 19. Written Agreements. Under Oregon law, most agreements, promises and commitments made by the Lender concerning loans and other credit extensions which are not for personal, family or household purposes or secured solely by the borrower's residence must be in writing, express consideration and be signed by the Lender to be enforceable. [The remainder of this page is left blank intentionally.] Page 9 - Financing Agreement CAP081414 Page 35 2355963.2038760 AGMr DATED as of the 20th day of August, 2014. Key Government Finance, Inc. 0 Michael O'Hem, SVP, Originations [The signature of the City appears on the followingpage.] Page 10 - Financing Agreement CAP081414 Page 36 2355963.2038760 AGMT DATED as of the 20th day of August, 2014 City of Central Point, Oregon By: Chris Clayton, City Manager Page 11 - Financing Agreement CAP081414 Page 37 13559632038764 AGMT 1u124, 2014 4:03 pm Prepared by Wester Financial Group (Finance 7.008 Central POinCFFC�RFF3,REF) Page I SOURCES AND USES OF FUNDS Full Failb d Credit Obligations 2014 Refunding Debt service mey vary fivm bank's computation by pennies. Rely on schedule in loan document. Sources. Bend Proceeds: Par Amount 2,693,261.00 2,693,261.00 U,,.: Refunding Escrow Doposits: Cash Deposit 556,400.63 SLGS Purchases 1112810.00 2,669,210.63 Delivery Date Expenses: Cost of lssc.w 24,05037 2,693,261.00 CAP081414 Page 38 Jut 24,2014 4:03 pm Prepared by Weston Financial Group (Pirmece 7.008 Central Point:FFC-REP3,REF) Pagc2 Dated Date BOND PRICING Delivery Date 08/20/2014 First Coupon 12/01/2014 Pull Faith & Credit Obligations Original Issue Discount Production 2,693,261.00 100.000000% 2014 Refunding Purchase Pre, 2,693,261.00 100.000000% Accrued Interest Debt service may vary from bank's computation by peones. Rely on schedule in loan document. Maturity Bond Component Date Amount Rate Yield Pnue Bond CompomenC 12/01/2014 53,000.00 2.490% 2.490% 100,000 12/01/2015 521.000.00 2.490% 2.490% 100,000 12:012016 535,000.00 2.49090 2.490% 100.000 12/012017 279,089.90 2.190% 2.490% 100.000 12/01/2018 289,946.30 2.490% 2.490% 100.000 12/012019 157,398.60 2.490°% 2.49096 100.000 12/0112020 160,353.80 2.490% 2.490% 100.000 12,01/2021 167,667.80 2.490% 2.490% 100.000 12/01/2022 170.025.30 2.490% 2.490% 100,000 12/01/2023 176,70370 2490% 2.490% 100.000 12/01,2024 183,075.60 2,490% 2.490% 100.000 2,693.261.00 Dated Date 0820/2014 Delivery Date 08/20/2014 First Coupon 12/01/2014 par Amount 2,693,26100 Original Issue Discount Production 2,693,261.00 100.000000% Underwriter's Disegunt Purchase Pre, 2,693,261.00 100.000000% Accrued Interest Nct Proceeds 2,693,261.00 CAP081414 Page 39 Jul 24, 2014 4:03 pm Prepared by Western Financial Group (Finance 7.008 Ccntral Point:FFC-RFF3,RFF) Pagc3 BOND SUMMARY STATISTICS Full Faith & Credit Obligations 2014 Refunding TIC Debt service may vary from bank's computation by pennies. Rely on schedule in loan document. Dated Date 08'20/2014 Delivery Data 08 20/2014 Last Maturity 12/01 /2024 Arbitrage Yield 2.490457% True interest Cost (TIC) 2.490457% Net interest Cost(NTC) 2.490000°% All -Tu TIC 2.709075% .A,mr a Coupon 2.490000% Average Life (years) 4.476 Duration oflssue (years) 4.162 Par Amount 2,693,261.00 Bond Proceeds 2,693,261.00 Total Interest 300,175.18 Net Interest 300,175.18 Total Debt Service 2,993,416.18 Maximum Annual Debt Service 581,108.85 Average Annual Debt Service 291,171.55 Underxrziter's Fees (per $1000) Average Takedourr Other Fee Total Underwriter's Discount Bid Price 100.000000 Bond Component Bond Comnapent Par Value Price 2,693,261.00 100,000 2,693,261.00 Average Accmgc Coupon Life 2.490% 4,476 4.476 CAP081414 Page 40 All -In Arbitrage TIC TIC Yield Par Value 2,693,261.00 2,693,261.00 +Accrued Interest + Premium (Discount) - Undurwritcr's Dkerunt - Cost of 1samere Expense -24,050.37 - Other Amnunts Target Value 2,693,261.30 2,669,210.63 'target Date 08/20/2014 08,20/2014 08/20/2014 Yield 2.490457% 2.709075% 2.490457% CAP081414 Page 40 Jul 24, 2014 4:03 pm Prepared by Western Financial Gtoup (Finance 7.008 Central PeintFFC-REF3,RRF) Page 1 SAVINGS 3,127,978.75 2,993,436.18 134,542.57 Savines S,,.,ov PV ofsavings from cash flow Net PV Savings CAP081414 Page 41 134,54257 111,870.26 117,870.26 117,870.26 Full Faith & Credit Obligations 2014 Refunding Debt service may very from bank's esnn nation by peonies. Rely on schedule in Ican docn.et. Present Value Prior Refunding Annual to 08/20/2014 Dale Debt Serviee Debt Service Savings Savings (g 2.4904568% 09/01,2014 10,700.00 10,700.00 10,69t.91 12/01/2014 41,870.25 72,000.96 -30,130.71 -29,922.21 03/01/2015 10,700.00 10,700.00 10,560.41 06/01/2015 41,870.25 32,871.25 8,999.00 8,826,81 06/30/2015 268.29 09/01/2015 135,700.00 135,700.00 132,282.46 12'01/2015 401,870.25 553,871.25 -152,001,00 -147,258.91 03/01/2016 8,200.00 8,200.00 7,895.17 06/01/2016 34,650.25 26,384.80 8,265,45 7,909.10 06/30/2016 164.45 09/01/2016 138,200.00 138,200.00 131,426.02 12/01/2016 410,650.25 561,384.80 -150,734.55 -142,461.93 03/01/2017 5,600.00 5,600.00 5,260.01 06/01/2017 27,038.75 19,724.05 7,314.70 6,828.23 06/30/2017 380.15 09/01/2017 140,600.00 140,600.00 130,439.61 12/01/2017 172,038.75 298,813.95 -126,775.20 -116,888.34 03/01'2018 2,900.00 2,900.00 2,657.34 06/01/2018 24,356.25 16,249.38 8,106.87 7.382.71 06/30/2018 24,831.67 09/01,2018 147,900.00 147.900.00 133,857.66 12/01,2018 174,35625 306,195.68 -131,839.43 -118.585.91 06/012019 21,506.25 12,639.55 $866.70 7,877.26 06/30,'2019 24,927.27 12/01/2019 176,50625 170,038.15 6,468.10 5,675.65 06/01/2020 18,483.75 10,679.93 7,803.81 6,763.49 06/30/2020 14,271.91 12/01/2020 178,483.75 171,033.74 7,450.01 6,377.44 06/01/2021 15,283.75 8,683.53 6,600.22 5,580.50 06/30/2021 14,050.23 12/012021 185,283.75 176,351.33 8,932.42 7,459.50 06/01/2022 11,798.75 6,596.07 5,202.68 4,291.34 06/30/2022 14,135.10 12/01/2022 186,798.75 176,621.37 10,177.38 8,291.39 06'01/2023 8,123.75 4,47925 3,641.50 2,932.61 06'30/2023 13,821.88 12/01/2023 193,123.75 18L182.95 11,940.80 9,490.20 06/01/2024 4,192.50 2,279.29 1,91321 L501.86 06/30/2024 13,854.01 12/012024 199,192.50 185, 3 54.89 13.83 7.61 10,728.87 06/30/2025 13,837.61 3,127,978.75 2,993,436.18 134,542.57 Savines S,,.,ov PV ofsavings from cash flow Net PV Savings CAP081414 Page 41 134,54257 111,870.26 117,870.26 117,870.26 .lol 24, 2014 3:03 pm Prepared by Westem Financial Group (Finance 7.008 Central POInt:F1FC-RBP3,RF,P) Page 5 BOND DEBT SERVICE 2,693,261.00 300,175.18 2,993,436.18 2,993,436.18 CAP081414 Page 42 Full Faith & Credit Obligations 2014 Refunding Debt s,ice may, vary Dorn bamks computation by pennies. Rely on schedule in loan document. Period Annual Erding Principal Coupon ina est Dobt Service Debt Service 12/01/2014 53,000.00 2490% 19,000.96 72,000.96 06/01/2015 32,871,25 32,871.25 06/30/2015 101,872.21 12/01/2015 521,000-00 2.490% 32,871.25 553,871.25 06/01/2016 26,384.80 26,384.80 06/30/2016 580,256.05 12/01/2016 535,000.00 2.4901A 26,384.80 561,384.80 06/01/2017 19,724.05 19,724.05 06/30/2317 581,108.85 12/01/2017 279,089.90 2.490% 19,724.05 298,813.95 06/01/2018 16,249.38 16,249.38 06/30/2018 315,063.33 12/01,2018 289,946.30 2.490% 16,249.38 306,195.68 06/01/2019 12,639.55 12,639.55 06/30/2019 318,83523 12/01/2019 157.398.60 2.490% 12,639.55 170,038.15 06/012020 10,679.94 10,679.94 06/302020 180,718.09 12/01/2020 160,353.80 2.490% 10,679.94 171,033.74 06/01/2021 8,68353 8,683.53 06/30/2021 179,717.27 12/01/2021 162667.80 2.490% $68353 176951.33 06/01/2022 6,596.07 6,596.07 06302022 182.947.40 12/01/2022 170,025.30 2,490% 6,596.07 176,621.37 06/01/2023 4,479.25 4,479.25 06/30/2023 181,10062 12/01/2023 176,703.70 2.490% 4,479.25 181,182.95 06/01/2024 2,279.29 2,27929 06/30/2024 183,462.24 12/01/2024 183,075.60 2.490% 2,279.29 185,354.89 06/30/2025 185,354.89 2,693,261.00 300,175.18 2,993,436.18 2,993,436.18 CAP081414 Page 42 Jul 24, 2014 4:03 pm Prepared by WcsWm Financial Group (Finance 7.008 Central Po1nbFFC-REF3,REF) Paye 6 SI:MMARY OF BONDS REFUNDED Full Faith & Credit Obligations 2014 Refunding Debt scrOce may vary from bank's computation by p monies. Rely on schedule in loan document. PRI - Prior Debt Series 2008 Parks, 2008PARK: SER 09/01/2015 09/01/2016 09/01/2017 09:01/2018 4.000% Maturity Interest Paz Call 102.000 Call Band Dale Rate Amount Date Price Scenic Tenth Upton, 2007 Final, 07STPP: 135.000.00 09/01/2014 102.000 SER 12/01/2015 4.300% 230,000.00 12/012014 100,000 102.000 12/012016 4.30040 241 00090 12/01/2014 100.000 2,606,000.00 47,000.00 Full Faith & Credit Obligations, Series 2004, 2004: SBR 12/01/2015 3.500% 130,000.00 12/012014 100.000 12/012016 3.600% 135,000.00 12/012014 100.000 12/01/2017 3.700% 145,000.00 12/012014 100.000 12/01/2018 3.800% 150,000.00 12/01/2014 100.000 12/01/2019 3.900% 155.000.00 12/012014 100.000 12/01/2020 4.000% 160,000.00 12/01/2014 100.000 12/012021 4.100% 170,000.00 12/01/2014 100.000 12/01/2022 4.200% 175,000.00 IMI/2014 100.000 12/01/2023 4.250% 185,000.00 12/01/2014 100.000 12/012024 4.300% 195,000.00 12/01/2014 100.000 _ 1,600,000.00 Series 2008 Parks, 2008PARK: SER 09/01/2015 09/01/2016 09/01/2017 09:01/2018 4.000% 125,D00.00 09/012014 102.000 4.000% 130.000.00 09/01/2014 102.000 4.000% 135.000.00 09/01/2014 102.000 4.000% _ 145.000.00 09/01/2014 102.000 535,000.00 2,606,000.00 CAP081414 Page 43 Jul 24, 2014 4:03 pro Pmpamd by Wostere Financial Group (Finance 7.008 Central PoinhFFC-REF3,REF) Page 7 Arbitrage yield 2.49045780 Escrowyicld SUNLMARY OF REFUNDING RESULTS Value of Negative Arbitrage Full Faith & Credit Obligations 2014 Refunding D_bt sc,ice may vary from bank's computation by pennies. Rely on schedule in loan document. Dated Date 08/20/2014 Delivery Date 08/2W2014 Arbitrage yield 2.49045780 Escrowyicld 0.010058% Value of Negative Arbitrage 14,561.26 Bond Par Amount 2,693,261.00 1 on Interest Cost 2.490457% Net Interest Cost 2.490000% All -le TIC 2.709075% Average Coupon 2.490000% Average Life 4.476 Par amount ofrefunded bonds 2,606,000.00 Avenge coupon of refunded bonds 4.094415% Average life of refunded bonds 4.626 PV ofprior debt to 08/20/2014 : 2.490457% 2.811,316.43 Net PV Savings 117,870.26 Percentage savings efrefunded bonds 4.523034% Perecutagc sat ings efrefunding bonds 4.376489% CAP081414 Page 44 h024, 2014 4:03 pm Prepared by Western Financial Group (Finance 7.008 Central Point:FF(,-RP.P3,RFF) Pagc 8 ESCROW REQUIREMENTS Full Faith & Credit Obbgations 2014 Refunding Debt service may vary from hank's computadon by pennies. Rely on schedule in loan document. Swvic Tenth Upton 2007 Final(07SIPP) Period Principal Ending Interest Redeemed Total 12/01/2014 10,126.50 471,000.00 481,126.50 10,126.50 471,000.00 4x1.126.50 CAP081414 Page 45 Ju124, 2014 4:03 pm Prcparcd by Weston Financial Group (Finance 7.008 Central PoirtFFCd2EF3,RPF) Page 9 ESCROW REQUIREMLI;TS FallFaith & Credit Obligati... 2014 Refunding Debt service may vary from bank's compounder by pennies. Rely on scbcdulc in loan docwnent. Full Faith & Credit Oblieations. Series 2004 (2004 Period Principal Ending Interest Redeemed Total 12,01/2014 31,743.75 1,600,000.00 1.631.743.75 31,743.75 1,600,000.00 1.631,743.75 CAP081414 Page 46 E1124, 2014 4:03 pm Prepared by Western Financial Group (Finance 7.008 Central POIn(:FFC-REF3,REF) Page 10 ESCROW REQUIREMENTS Full Faith & Credit Obligations 2014 Refunding Debt sen ice may vary train bank's computation by pennies. Italy on schedule in lung document. Sores 2008 Parks (2008P 1RK) Period Principal R,:demption Ending interest Redeemed Premium 'Iota] 09/01/2014 10.700,00 535,000.00 10,700.00 556,400.00 10.700.00 535,000.00 10.700.00 556,400.00 CAP081414 Page 47 Jul 24, 2014 4:03 pm Prepared by Wcstem Financial Group (Finance 7.009 Central PohF:FFC-RF.F3,REF) Pago 11 FINREFUNDED BOND DEBT SERVICE Full Faith & Credit Obligations 2014 Refunding Debt service may vary from bank's computation by pennies. Rely on schedule in loan document. Scenic Tenth Upton. 2007 Final (07S ITP) Period Annual Ending Principal Coupon Interest Debt Service Debt Service 11/01/2014 221,000 4.300% 4,751.50 225,751_50 06/30,7015 225.751.50 221.000 1,751.50 225,751.50 225,751.50 CAP081414 Page 48 Jul 24, 2014 4:03 pm Prepared by Wcstem Financial Group (Finance 7.008 Cenral PointFFC-REF3,RP.F) Page 12 UNREFUNDED BOND DEB r SERVICE Full Faith & Credit Obligation, 2014 Refunding D_bt scrvlec may vary Corm banks computation by pennies. Rely on schedule in loan document. Full Faith & Credit Obligations Series 2004 (2004) Pcricd Ending Principal 12/01/2014 125,000 06/30;2015 125,000 Annual Debt Debt Coupon Interest service Scup 3.400°0 2,125 127,125 127.125 CAP081414 Page 49 2,125 127,125 127,125 .Iu124, 2014 4:03 pen Prepared by Western Financial Group (Finance 7.008 Central PoinTFFC-REF3,REP) Page 13 FT'RFFIADE,EON DEET SEPPITCP. Full Faith & Credit Obligations 2014 Refunding Debt service may vary from bank's computation by pennies. Rely on schedule in loan document. Series 2008 Parks (2008PARK) CAP081414 Page 50 Annual Period Debt Debt Ending Principal Coupon Interest Service Service 09/01/2014 120,000 4.000% 2,400 122,400 06/3012015 122,400 120,000 2,400 122,400 122,400 CAP081414 Page 50 Ju124,2014 4:03 pm Prepared by Waster Financial Group (Finance 7.008 Central Point:FFC-REF3,RET) Page 14 FORM 8038 STATISTICS Full Faith & Credit Obligations 2014 Refunding Debt service may vary Goin bank's computation by pennies. Rely on schedule in loan document. Dated Date 08/20/2014 DelivryDate 08,20/2014 Redemption Bond Component Date Principal Coupon Price Issue Price at. -Maturity Bond Component: 12/OV2014 53,000.00 2.490% 100.000 53,000.00 53,000.00 12/01/2015 521,000.00 2.490% 100.000 521.000.00 521,000.00 12/01/2016 535,000.00 2,490% 100.000 535,000.00 535,000.00 12/01/2017 279,089.90 2.490% 100.000 279,089.90 279.089.90 12/01/2018 289,946.30 2.490% 100.000 289,946.30 289.94630 12/01.2019 157,398.60 2.490% 100.000 157,398.60 157,398,60 12/01,2020 160,353.80 2.490% 100.000 160.353.80 160,353.80 12/01/2021 167,667.80 2.490% 100.000 167,667.80 167,667.80 12/01,2022 170,025,30 2,490% 100.000 170,025.30 170,025.30 12/01/2023 176,70170 2.490% 100.000 176,703.70 176,703.70 12/01/2024 183,075.60 2.490% 100.000 183,075.60 183,075.60 2,693,261.00 2,693.261.00 2,693,261,00 Stated Weighted Maturity httemst Issue Redemption Awrako Date Rate Price at Maturity Maturity Yield Final Maturity 12;01/2024 2.490% 183,075.60 183,075.60 Entice Issue 2,693,261.00 2,693.261.00 4.4733 2.4905% Proceeds used for accred interest 0.00 Proceeds used for bond issuance costs (including undcrwriters' disceund 24,050.37 Proceeds used for credit enhancement 0.00 Proceeds appeared to reasonably required xserve or replacement fund 0.00 Procccds used to currently refund prior issuus 0.00 Proceeds used to advance refund prior issue= 2,669,210.63 Remaining eeightcd average maturity afthe bonds ro be currently refunded 2.5913 Remaining weighted average maturity ofthe bands to be advance refunded 5.1452 CAP081414 Page 51 Jul 24, 2014 4:03 pm Prepared by Western Financial Group (Finance 7.008 Central PointFFC-REF3,REF) Page 15 FORM 8038 STAIISICS Full Faith & Credit Obligations 2014 Refunding Debt service may vary from banks eumputation by pennies. Rely on schedule in loan document. Refundod Bonds Band Last Weighted Call Issue SER Component Date Principal 100.000 Coupon Price SER Team, Price Scenie'Penth Upton, 2007 Final: 4.000% 100.000 6.1388 130,000.00 SER 09:01/2017 SER 12/01,2015 230,000.00 4.300% 100.000 09/01/2018 230,000.00 SER 12/01/2016 241,000.00 _145,000.00 4.300% 100.000 535,000.00 241,000.00 471,000.00 2,606,000.00 471,000.00 Full Faith & Credit Obligations, Series 2004: 2,595,427.65 SER 12/01/2015 130,000.00 3.500% 99.265 129,044.50 SER 12/01/2016 135,000.00 3.600% 99.217 133,942.95 SER 12,'01/2017 145,000.00 3.700% 99.274 143,947.30 SER 12/01/2018 150,000.00 3.800% 99.345 149,017.50 SER 12/01/2019 155,000.00 3.900% 99.129 154,114.95 SER 12/01/2020 160,000.00 4.000% 99.523 159,236.80 SER 12/01/2021 170,000.00 4.100% 99.628 169,367.60 SER 12/01'2022 175,000.00 4.200% 99.742 174,548.50 SER 12/012023 185,000.00 4.250% 99,217 183,551.45 SRR 12/012024 195 000.00 4.300% 98998 192,65610 1.600.000.00 1.589.427.65 Series 2008 Parks: Last Weighted Call Issue SER 09 01/2015 125,000.00 4.000% 100.000 Scenic Tenth Upton, 2007 Final 125,000.00 SER 09/012016 130,000.00 4.000% 100.000 6.1388 130,000.00 SER 09:01/2017 135,000.00 4.000% 100.000 135,000.00 SER 09/01/2018 145,000.00 4.000% 100.000 _145,000.00 _ 535,000.00 535,004 00 2,606,000.00 2,595,427.65 Remaining CAP081414 Page 52 Last Weighted Call Issue Average Data Date Maturity Scenic Tenth Upton, 2007 Final 12/012014 06/06/2007 1.7922 Full Faith & Credit Obligations, Series 2004 12/012014 09/29/2001 6.1388 Series 2008 Parks 09/01/2014 09/04/2008 2.5913 All Refined Issues 12/01/2014 4.6188 CAP081414 Page 52 ]al 24, 2014 4:03 pm Pr_pated by Weatenr Financial Group (Finance 7.008 Centml PoinTFFC-REF3,REF) Page 16 PROOF OF MR I (RAGE YIELD Full Faith & Credit Obligations 2014 Refunding Debt service may vary from bank's computation by pennies. Rely on schedule in loan document 300,175.18 0.00 Proceeds S.. Delivery date 08/202014 '1'arVt for yield calculation CAP081414 Page 53 Present Value to 08/202014 Date Debt Service 2.4904567710% 08/19/2014 -2,693,261.00 -2,693,446.17 12/01/2014 72,000.96 71,502.72 06/01/2015 32,871.25 32,242.29 12/01/2015 553,871.25 536,591.72 06/01/2016 26,384.80 25,247.27 12/01/2016 561,384.80 530,574.86 06/012017 19,724.05 18,412.28 12/012017 298,813.95 275,510,25 06/012018 16,249.38 14,797.87 12'012018 306,195.68 275,414.51 O6/01/2019 12,639.55 11,229.10 12/01/2019 170,038.15 149,205.56 06/01/2020 10,679.94 9,256.20 12/01/2020 171,033.74 146,410.19 06/012021 8,683.53 7,34L95 12/01/2021 176,351.33 14727L6i 06/01/2022 6,5W07 5,440.65 12/012022 176,621.37 143,891.29 06/01/2023 4,479.25 3,604.31 12101/2023 181,182.95 143,998.99 06/01/2024 2,279.29 1,789.23 12/01/2021 185.3 54.89 143.713.32 300,175.18 0.00 Proceeds S.. Delivery date 08/202014 '1'arVt for yield calculation CAP081414 Page 53 Jul 24, 2014 4:03 pm Prcpmcd by Weslem Financial Group (Finance 7.008 Central Pomt;FFC-RFF3,RFF) Page 17 COST OF ISSUANCE. Full Faith 8t Credit Obligations 2014 Refunding Debt service may very from hank's computation by pennies. Rely on schedule in loan document Cost oflssuance $/1000 .lmount BC 4.45557 12,000.00 FA 3.24885 8,750.00 MDAC 0.29704 800.00 Bank Counscl 0.55695 1,500.00 Escrow.\gent 0.18565 500.00 Mise. 0.18579 500.37 8.92983 24,050.37 CAP081414 Page 54 .Jul 24, 2014 4:03 pm Prepared by Wesanr Financial Group (Finsaae 7.008 Central PointFFC-REF3,RF,F) Page 18 ESCROW DESCRIPTIONS SLGS Summary SLGS Raters File 24JUL14 Total Certificates oflndebtedness 2,112,810.00 CAP081414 Page 55 Full Faith & Credit Obligations 2014 Refunding D.,bt service may vary f om bank's computation by puppies. hely on schedule in loan docmnenl. Type of Type of 1,11innity First Int Par Mac Security SLGS �- Date PmtDatu Pageant Rate Rate Aug 20, 2014: SLGS - -- Certificate 12/01/2014 12/01/2014 2,112,810 OA10% 0.010% 2,112,810 SLGS Summary SLGS Raters File 24JUL14 Total Certificates oflndebtedness 2,112,810.00 CAP081414 Page 55 7u124. 2014 4:03 pre Prepared by Western Financial Group (Finance 7.008 Central PoirEFFC-REF3,REP) Page 19 Pumh.e Cast of Cash Total Data Seeudtica Deposit EscmwCost Yield D820120I4 2,112810 556,400.63 2,669,210.63 0.010058% 2,112,810 556A00.63 2,669,210.63 CAP081414 Page 56 ESCROW COST Full Faith & Credit Obligations 2014 Rcflmding Debt service may vary from bunk's computation by pennies. Rely on schedule in loan document. Type of Maturity Par Total Security Date Amount Rete Cast S1,G5 12/01/2014 2,112,810 0.010% 2,112,810.00 2,112,810 2,112,810.00 Pumh.e Cast of Cash Total Data Seeudtica Deposit EscmwCost Yield D820120I4 2,112810 556,400.63 2,669,210.63 0.010058% 2,112,810 556A00.63 2,669,210.63 CAP081414 Page 56 Jul 24, 2014 493 pm Prepared by Western Financial Group (Finance 7.008 Central Point: FFC-RF:F3,RF.F) Page 20 Escrow Cast So= Purchase date 08/20/2014 Purchase cost of securities 2,112,810.00 Target for yield calculddon 2,112,810.00 CAP081414 Page 57 LSCROW CASH FLOW Full Faith & Credit Obligations 2014 Refunding Debt services may vary from bank's onmputatmo by pennies. Rely on schedule in Ioan document. Present Value Net Escrow to 08.20, 2014 Date Principal Inters[ Receipts a 0.0100581$0 12/01/2014 2,112,810.00 - - — — 59.62 2,112,869.62 2,112,810.00 2,112,810.00 59.62 2,112,869.62 2,112,810.00 Escrow Cast So= Purchase date 08/20/2014 Purchase cost of securities 2,112,810.00 Target for yield calculddon 2,112,810.00 CAP081414 Page 57 .Jul 24, 2014 4:03 pm Prepared by Westem Financial Group (Finance 7.008 Central Point:FFC-REF3,REF) Pa0e21 ESCROW SUFFICIENCY CAP081414 Page 58 Full Faith & Credit Obligations 2014 Refunding Debt service may vary from bank's computation by pennies. Rely on schedule in loan document. R, gmv Net Escrow E.resa Excess Date Requirement Receipts Receipts balance 08/20/2014 556,400.63 556,400.63 556,400.63 09/01/2014 556,400.00 -556,400.00 0.63 12/01/2014 2,112,870.25 — - -- - 2,112,869.62 -0.63 2,669,270.25 2,669170.25 0.00 CAP081414 Page 58 Jul 24. 2014 4:03 pm Prepared by Western Financial Group (Finance 7.00R Central PoivtPPC-RYP3,REh� Page22 Delivery date 08/20,2014 Arbitrage yi_ld 2.490457% CAP081414 Page 59 ESCROW STATISTICS Full Faith & Credit Obligations 2014 Refunding Debt service may vary firm banks computation by penmen. Rely on schedule in loan document. Modified Yield to Yiddto Perieot Velueof Total Duration Receipt Disbursement Escrow Negative Cost of Escrow Cost (,cars) Date Date Cost Arbitrage Dead Time Global Proceeds Escrow: 2,669,210.63 0,281 -— 0.010058% _ 0.010058% 2,654,228.73 — 14,561.26 420.61 2.669,210.63 2,654,228.73 13,561.26 420.64 Delivery date 08/20,2014 Arbitrage yi_ld 2.490457% CAP081414 Page 59 Jr] 24, 2014 4:03 Pm Prepared by Western Financial Group (Finanoe 7,008 Cenral Point:FFC-REF3,REF) Page23 PROOF OF C034POS1"IE ESCROW YIELD Full Faith &Coedit Obligations 2014 Refunding Debt scrvica may vary from bank's computation by pennies. Rely on schedule in loan document. All restrictd escrawe funded by bond Proceeds Present Value Scwaity to 08; 20/2014 Date Receipts r; 0.0100581347% 12/01/2014 2,112,869.62 2,112,810.00 2,112,869.62 2,112,810.00 Escrow Cost Sutnmaaa Purchase date 08/20'2014 Purchase cost of securities 2,112,810.00 Target for yield calcaltam 2,112,810.00 CAP081414 Page 60 Resolution Tax=Exempt Bond Policy CAP081414 Page 61 Staff Report CENTRAL POINT Finance Department Bev Adams, Finance Director Background: At this meeting Council will be asked to consider approval of a debt refinance package which will consolidate several issues and save the City considerable money in interest costs. When this financing closes, we will need to file a Form 8038-G with the IRS. That 8038-G now requires that we indicate whether the City has established written post - issuance compliance procedures to ensure compliance with the arbitrage and the private business use rules imposed on tax-exempt bonds and bond -financed facilities. The background forthis is that the IRS has become increasingly interested in "encouraging" issuers to adopt written compliance procedures because they believe (probably not unreasonably) that tax compliance may improve if issuers have written procedures addressing how they will monitor compliance after bonds are issued. Havingwritten procedures is not in and of itself a tax requirement, but if the City does not have written procedures, then we'll have to leave those boxes blank on the 8038-G. Although the IRS does not require issuers to adopt post -issuance compliance procedures, it has provided an incentive in the form of reduced penalties in the event that there is an inadvertent tax violation after issuance. For example, if there is a change in use of a bond -financed facility in a way that causes tax issues, an issuer who discovered the problematic change in use pursuant to its post -issuance procedures is entitled to a pay a reduced amount if the change is such that a monetary settlement to the IRS is required to resolve the tax issue. Of course we plan for there not to be a tax issue in the first place, but if the City has procedures in place the settlement in the event of such an issue would be reduced. In addition, while the IRS has stated that it is not targeting issuers without post -issuance compliance procedures for an audit, they have indicated that they view the adoption of these procedures to be a favorable fact during an audit in indicating that the issuertakes its post -issuance compliance procedures seriously. Attached are the proposed tax-exempt bond post -issuance compliance policy and the resolution to adopt the policy. Recommended Action: That Council, by resolution, adopt the Tax -Exempt Bond Post -Issuance Compliance Policy for the City of Central Point. CAP081414 Page 62 W no To: Mayor & Council y From: Bev Adams, Finance Director ai Q Date: Augustu"aoiy 0 i Subject: Tax-exempt bond post -issuance policy y K Background: At this meeting Council will be asked to consider approval of a debt refinance package which will consolidate several issues and save the City considerable money in interest costs. When this financing closes, we will need to file a Form 8038-G with the IRS. That 8038-G now requires that we indicate whether the City has established written post - issuance compliance procedures to ensure compliance with the arbitrage and the private business use rules imposed on tax-exempt bonds and bond -financed facilities. The background forthis is that the IRS has become increasingly interested in "encouraging" issuers to adopt written compliance procedures because they believe (probably not unreasonably) that tax compliance may improve if issuers have written procedures addressing how they will monitor compliance after bonds are issued. Havingwritten procedures is not in and of itself a tax requirement, but if the City does not have written procedures, then we'll have to leave those boxes blank on the 8038-G. Although the IRS does not require issuers to adopt post -issuance compliance procedures, it has provided an incentive in the form of reduced penalties in the event that there is an inadvertent tax violation after issuance. For example, if there is a change in use of a bond -financed facility in a way that causes tax issues, an issuer who discovered the problematic change in use pursuant to its post -issuance procedures is entitled to a pay a reduced amount if the change is such that a monetary settlement to the IRS is required to resolve the tax issue. Of course we plan for there not to be a tax issue in the first place, but if the City has procedures in place the settlement in the event of such an issue would be reduced. In addition, while the IRS has stated that it is not targeting issuers without post -issuance compliance procedures for an audit, they have indicated that they view the adoption of these procedures to be a favorable fact during an audit in indicating that the issuertakes its post -issuance compliance procedures seriously. Attached are the proposed tax-exempt bond post -issuance compliance policy and the resolution to adopt the policy. Recommended Action: That Council, by resolution, adopt the Tax -Exempt Bond Post -Issuance Compliance Policy for the City of Central Point. CAP081414 Page 62 RESOLUTION NO. A RESOLUTION TO ADOPT IfAX-EXEMPT BOND POST -ISSUANCE COMPLIANCE POLICIES FOR THE CITY OF CENTRAL POINT RECITALS: A. The policy is to ensure that the City of Central Point complies with the requirements of federal tax law to preserve the tax status of interest on tax-exempt obligations. B. The policy sets forth comp) lance procedures to utilize all proceeds from bonds, certificates of participation, bond anticipation notes, and tax revenue anticipation notes in accordance with applicable federal tax requirements with respect to outstanding bonds. THE CITYOF CENTRAL POINT RESOLVES: Section 1: To adopt the attached "Tax -Exempt Bond Post -Issuance Compliance Policy". Passed by the Council and signed by mein authentication of its passage this August 14, 2014. Hank Williams, Mayor ATTEST: Deanna Casey, City Recorder CAP081414 Page 63 City of Central Point TAX-EXEMPT BOND POST -ISSUANCE COMPLIANCE POLICY The purpose of this Policy is to ensure that the City of Central Point (the "Issue[") complies with applicable requirements of federal tax law necessary to preserve the tax status of interest on tax- exempt obligations issued by the Issuer. This Policy is designed to set forth compliance procedures so that the Issuer utilizes the proceeds of all issues of bonds, certificates of participation, bond anticipation notes, and tax and revenue anticipation notes (collectively referred to as "Bonds") in accordance with applicable federal tax requirements, and complies with all other applicable federal requirements with respect to outstanding Bonds. To comply with applicable federal tax requirements, the Issuer must confirm that the requirements are met at the time each Bond issue is issued and throughout the term of the Bonds (until maturity or redemption). Generally, compliance should include retention of records relating to the expenditure of the proceeds of each Bond issue, the investment of the proceeds of each Bond issue, and any allocations made with respect to the use of the proceeds of each Bond issue, sufficient to establish compliance with applicable federal tax requirements, including records related to periods before the Bonds are issued (e.g., in the case of reimbursement of prior expenditures) until six (6) years after the final maturity or redemption date of any issue of Bonds. II. PROCEDURES. A. Responsible Official. The City Manager of the Issuer will identify the officer or other employee(s) of the Issuer (the "Bond Compliance Officer") who will be responsible for each of the procedures listed below, notify the current holder of that office of the responsibilities, and provide that person a copy of these procedures. Upon employee transitions, the City Manager or Finance Director of the Issuer will advise any newly -designated Bond Compliance Officer of his/her responsibilities under these procedures and will ensure the Bond Compliance Officer understands the importance of these procedures. If employee positions are restructured or eliminated, the City Manager of the Issuer will reassign responsibilities as necessary. Bond Counsel. The Issuer will retain a nationally -recognized bond counsel law firm ("B—ond Counsel") to assist the Issuer in issuing Bonds. In connection with any tax-exempt Bond issue, Bond Counsel will deliver a legal opinion which will be based in part on covenants and representations set forth in the Issuer's Tax Certificate (or other closing documents containing the tax representation) (the "Tax Certifica e") and other certificates relating to the Bonds, including covenants and representations concerning compliance with post -issuance federal tax law requirements that must be satisfied to CAP081414 Page 64 preserve the tax-exempt status of tax-exempt Bonds. As described more fully below, the Issuer will also consult with Bond Counsel and other legal counsel and advisors, as needed, following issuance of each Bond issue to ensure that applicable post -issuance requirements in fact are met, so that tax- exempt status of interest will be maintained for federal income tax purposes so long as any Bonds remain ou tanin . The Bond Compliance Officer and/or other designated Issuer personnel will consult with Bond Counsel and other legal counsel and advisors, as needed, throughout the Bond issuance process to identify requirements and to establish procedures necessary or appropriate so that that tax-exempt status of interest will be maintained. Those requirements and procedures shall be documented in a Tax Certificate and other certificates and/or other documents finalized at or before issuance of the Bonds. If there is no document in the transcript titled "Tax Certificate," the Bond Compliance Officer and/or other designated Issuer personnel will consult with Bond Counsel prior to the closing of the financing to understand which document(s) in the transcript contain the tax representations and covenants. The requirements and procedures in the Tax Certificate shall include future compliance with applicable arbitrage rebate requirements and all other applicable post -issuance requirements of federal tax law throughout (and in some cases beyond) the term of the Bonds. Documentation of Tax Requirements. The federal tax requirements relating to each Bond issue will be set forth in the Tax Certificate executed in connection with the Bond issue, which will be included in the closing transcript. The certifications, representations, expectations, covenants and factual statements in the Tax Certificate relate primarily to the restriction on use of the Bond -financed facilities by persons or entities other than the Issuer, changes in use of assets financed or refinanced with Bond proceeds, restrictions applicable to the investment of Bond proceeds and other moneys relating to the Bonds, arbitrage rebate requirements, and economic lite of the Bond -financed assets. In rmation Reportine. The Bond Compliance Officer and/or other designated Issuer personnel will assure filing of information returns on IRS Form 8038-G no later than the 151M1 day of the second calendar month in the calendar quarter following the calendar quarter in which an issue of Bonds is Issued. The Issuer will confirm that the IRS Form 8038-G is accurate and is filed in a timely manner with respect to all Bond issues, including any required schedules and attachments. The IRS Form 8038-G filed with the IRS, together with an acknowledgement copy (if available) or IRS Notice CP152, will be included as part of the closing transcript for each Bond issue, or kept in the records related to the appropriate issue of Bonds. C. Application of Bond -Proceeds Use of Bond Proceeds. The Bond Compliance Officer and/or other designated Issuer personnel shall: * monitor the use of Bond proceeds and the use of the Bond -financed assets (e.g., facilities, furnishings or equipment) throughout the term of the Bonds (and in some cases beyond the term of the Bonds) to ensure compliance with covenants and restrictions set forth in the applicable Tax Certificate; CAP081414 Page 65 * maintain records identifying the assets or portion of assets that were financed or refinanced with proceeds of each issue of Bonds; * consult with Bond Counsel and other legal counsel as needed in the review of any contracts or arrangements involving use of Bond -financed facilities to ensure compliance with all covenants and restrictions set forth in the applicable Tax Certificate; * maintain records for any contracts or arrangements involving the use of Bond -financed facilities as might be necessary or appropriate to document compliance with all covenants and restrictions set forth in the applicable Tax Certificate; and * communicate as necessary and appropriate with personnel responsible for the Bond -financed assets to identify and discuss any existing or planned use of the Bond -financed assets, to ensure that those uses are consistent with all covenants and restrictions setforth in the applicable Tax Certificate. Timely Exoenditure of Bond Proceeds. At the time of issuance of any Bonds issued to fund original expenditures, the Issuer must reasonably expect to spend at least 85% of all proceeds expected to be used to finance such expenditures (which proceeds would exclude proceeds in a reasonably required reserve fund) within three (3) years after issuance of such Bonds.' In addition, for such Bonds, the Issuer must have incurred or expect to incur within six months after issuance original expenditures of not less than 5% of such amount of proceeds, and must expect to complete the Bond -financed project (the "Pro' ") and allocate Bond proceeds to costs with due diligence.' Satisfaction of these requirements allows Project -related Bond proceeds to be invested at an unrestricted yield for three (3) years.' Bonds issued to refinance outstanding obligations are subject to separate expenditure requirements, which shall be outlined in the Tax Certificate relating to such Bonds. The Issuer's finance staff will monitor the appropriate capital project accounts (and, to the extent applicable, working capital expenditures and/or refunding escrow accounts) and ensure that Bond proceeds are spent within the applicable time period(s) required under federal tax law. In the case of short-term working capital financings (e.g, TRANS), the Issuer's actual maximum cumulative cash flow deficit as of the close of the six-month period commencing an the issue date must be at least equal to 100% of the issue price of the notes (under the six-month rebate exception, excluding the reasonable working capital reserve) or 90% of the issue price of the notes (under the statutory safe harbor exception) in order for the notes to be exempt from the rebate requirements. These requirements do not apply to short-term working capital financings It, g., TRANS). Proceeds of working capital financings (e.g., TRANS) may be invested at an unrestricted yield for thirteen (13) months.. 3 CAP081414 Page 66 Capital Expenditures. In general, proceeds (including earnings on original sale proceeds) of Bonds issued to fund original expenditures, otherthan proceeds deposited in a reasonably required reserve fund or used to pay costs of issuance, should be spent on capital expenditures.' For this purpose, capital expenditures generally mean costs to acquire, construct, or improve property (land, buildings and equipment), or to adapt the property to a new or different use. The property financed or refinanced must have a useful life longer than one (1) year. Capital Expenditures include design and planning costs related to the Project, and include architectural, engineering, surveying, soil testing, environmental, and other similar costs incurred in the process of acquiring, constructing, improving or adapting the property. Capital Expenditures do not include operating expenses of the Project or incidental or routine repair or maintenance of the Project, even if the repair or maintenance will have a useful life longer than one (1) year. D. Use of Bond -Financed Assets. Oovaiership_and Use of Pr 'e . For the life of a Bond issue, the Project must be owned and operated by the Issuer (or another state or local governmental entity). At all times while the Bond issue is outstanding, no more than 10% (or $15,000,000, if less) of the Bond proceeds or the Project may used, directly or indirectly, in a trade or business carried on by a person other than a state or local governmental unit ("Private Use").' In addition, not more than 5% (or $5 million, if less) of the proceeds of any Bond issue may be used, directly or indirectly, to make a loan to any person other than governmental persons. Generally, Private Use consists of any contract or other arrangement, including leases, management contracts, operating agreements, guarantee contracts, take or pay contracts, output contracts or research contracts, which provides for use by a person who is not a state or local government on a basis different than the general public. The Project may be used by any person or entity, including any person or entity carrying on any trade or business, if such use constitutes "General Public Use". General Public Use is any arrangement providing for use that is available to the general public at either no charge or on the basis of rates that are generally applicable and uniformly applied. Management or Oper in. A. reement . Any management, operating or service contracts whereby a non-exempt entity is using assets financed or refinanced with Bond proceeds (such as bookstore, cafeteria or dining facility, externally -managed parking facilities, gift shops, etc.) must relate to portions of the Project that fit within the allowable private use limitations or the contracts must meet the IRS safe harbor for management contracts. Any replacements of or changes to such contracts relating to Bond -financed assets or facilities, or leases of such assets or facilities, should be reviewed by Bond Counsel. The Bond Compliance Officer shall contact Bond Counsel if there may he a lease, sale, disposition or other change in use of assets financed or refinanced with Bond proceeds. Proceeds ofworking capital financings (e.g., TRANs) need not be spent for capital expenditures. This 10% limitation is limited to 5% in cases in which the Private Use is either unrelated or disproportionate to the governmental use of the financed facility. CAP081414 Page 67 UAcfuLL11ja Limitation. The weighted average maturity of the Bond issue cannot exceed t00% of the weighted average economic life of the Bond -financed assets. In other words, the weighted average economic life of the Project must be at least 80% of the weighted average maturity of the Bond issue. Additional state law limitations may apply as well. E. Investment Restrictions rbitra2e Yield Calculations Rebate. Investment Restrictions. Investment restrictions relating to Bond proceeds and other moneys relating to the Bonds are set forth in the Tax Certificate. The Issuer's finance staff will monitor the investment of Bond proceeds to ensure compliance with applicable yield restriction rules. Use Control of Bond Proceeds. Unexpended Bond proceeds (including reserves) may be held directly by the Issuer or by the trustee for the Bond issue under an indenture or trust agreement. The investment of Bond proceeds shall be managed by the Issuer. The Issuer shall maintain appropriate records regarding investments and transactions involving Bond proceeds. The trustee, if appropriate, shall provide regular statements to the Issuer regarding investments and transactions involving Bond proceeds. Arhitr a Yield Calculations. Investment earnings on Bond proceeds should be tracked and monitored to comply with applicable yield restrictions and/or rebate requirements. Any funds of the Issuer set aside or otherwise pledged or earmarked to pay debt service on Bonds should be analyzed to assure compliance with the tax law rules on arbitrage, invested sinking funds, and pledged funds (including gifts or donations linked or earmarked to the Bond -financed assets. Rebate. The Issuer is responsible for calculating (or causing the calculation of) rebate liability for each Bond issue, and for making any required rebate payments. Unless Bond Counsel has advised the Issuer that the Bonds are exempt from the rebate requirements described in this section, the Issuer will retain an arbitrage rebate consultant to perform rebate calculations that may be required to be made from time to time with respect to any Bond issue. The Issuer is responsible for providing the arbitrage rebate consultant with requested documents and information on a prompt basis, reviewing applicable rebate reports and other calculations and generally interacting with the arbitrage rebate consultant to ensure the timely preparation of rebate reports and payment of any rebate. The reports and calculations provided by the arbitrage rebate consultant are intended to assure compliance with rebate requirements, which require the Issuer to make rebate payments, if any, no later than the fifth (51M1) anniversary date and each fifth (5") anniversary date thereafter through the final maturity or redemption date of a Bond issue. Afinal rebate payment must be made within sixty (60) days of the final maturity or redemption date of a Bond issue. The Issuer will confer and consult with the arbitrage rebate consultant to determine whether any rebate spending exceptions may he met. Rebate spending exceptions are available for periods of 6 months, 18 months and 2 years. The Issuer will review the Tax Certificate and/or consult with the 5 CAP081414 Page 68 arbitrage rebate consultant or Bond Counsel for more details regarding the rebate spending exceptions. In the case of short-term working capital financings, such as tax and revenue anticipation notes, if there is concern as to whether or not the Issuer has met its requisite maximum cumulative cash flow deficit with respect to its short-term working capital notes, the services of a rebate analyst should be engaged to determine whether either the six-month spending exception or the statutory safe harbor exception to the rebate rules is met (in which case no rebate would be owed) or whether the proceeds of the notes are subject, in whole or in part, to rebate. Copies of all arbitrage rebate reports, related return filings with the IRS (i.e., IRS Form 8038-T), copies of cancelled checks with respect to any rebate payments, and information statements must be retained as described below. The responsible official of the Issuer described in Subsection A of this Part II will follow the procedures set forth in the Tax Certificate entered into with respect to any Bond issue that relate to compliance with the rebate requirements. F. Record Retention. Allocation of Bond Proceeds to Expenditures, The Issuer shall allocate Bond proceeds to expenditures for assets, and shall trace and keep track of the use of Bond proceeds and property financed or refinanced therewith. Record Keeping Requirements. Copies of all relevant documents and records sufficient to support an assertion that the tax requirements relating to a Bond issue have been satisfied will be maintained by the Issuer for the term of a Bond issue (including refunding Bonds, if any) plus six (6) years, including the following documents and records: • Bond closing transcripts; • Copies of records of investments, investment agreements, credit enhancement transactions, financial derivatives (e.g., an interest rate swap), arbitrage reports and underlying documents, including trustee statements; • Copies of material documents relating to capital expenditures financed or refinanced by Bond proceeds, including (without limitation) purchase orders, invoices, trustee requisitions and payment records, as well as documents relating to costs reimbursed with Bond proceeds and records identifying the assets or portion of assets that are financed or refinanced with Bond proceeds; • All contracts and arrangements involving private use, or changes in use, of the Bond - financed property; • All reports and documents relating to the allocation of Bond proceeds and private use of Bond -financed property; and CAP081414 Page 69 • Itemization of property financed with Bond proceeds, including placed in service dates. In the case of short-term working capital financings, such as tax and revenue anticipation notes, information regarding the Issuer's revenue, expenditures and available balances sufficient to support the Issuer's maximum cumulative cash flow deficit. III. POST -ISSUANCE COMPLIANCE. A. In General. The Issuer will conduct periodic reviews of compliance with these procedures to determine whether any violations have occurred so that such violations can be remedied through the "remedial action" regulations (Treas. Reg. Section 1.141-12) or the Voluntary Closing Agreement Program (VCAP) described in IRS Notice 2008-31 (or successor guidance). If any changes or modifications to the terms or provisions of a Bond issue are contemplated, the Issuer will consult Bond Counsel. The Issuer recognizes and acknowledges that such modifications could result in a "reissuance" of the Bonds for federal tax purposes (i.e., a deemed refunding) and thereby jeopardize the tax-exempt status of the Bonds after the modifications. The Bond Compliance Officer and/or other designated Issuer personnel will consult with Bond Counsel and other legal counsel and advisors, as needed, following issuance of each issue of the Bonds to ensure that all applicable post -issuance requirements in fact are met, so that interest on the Bonds will be excluded from gross income for federal income tax purposes so long as any Bonds remain outstanding. This will include, without limitation, consultation in connection with future contracts with respect to the use of Band -financed assets and future contracts with respect to the use of output or throughput of Bond -financed assets. Whenever necessary or appropriate, the Issuer will engage an expert advisor as arbitrage rebate consultant to assist in the calculation of arbitrage rebate payable in respect of the investment of Bond proceeds. B. Monitoring Private or Other Use of Financed Assets. The Issuer will maintain records identifying the assets or portion of assets that are financed or refinanced with proceeds of a Bond issue, including the uses and the users thereof (including terms of use and type of use). Such records may be kept in any combination of paper or electronic form. In the event the use of Bond proceeds or the assets financed or refinanced with Bond proceeds is different from the covenants, representations or factual statements in the Tax Certificate, the Issuer will promptly contact and consult with Bond Counsel to ensure that there is no adverse effect on the tax-exempt status of the Bond issue and, where appropriate, will remedy any violations through the "remedial action" regulations (Treas. Reg. Section 1.141-12), the Voluntary Closing Agreement Program (VCAP) described in IRS Notice 2008-31 (or successor guidance), oras otherwise prescribed by Bond Counsel. CAP081414 Page 70 C. Ongoing Trainine Training shall be made available to the Compliance Officer to support the Compliance Officer's understanding of the tax requirements applicable to the Bonds. Such training may include, but would not be limited to, attending training sessions at local conferences such as OMFOA and/or OASBO, participation in IRS teleconferences, reading technical guidance materials provided by educational organizations, the IRS, and/or Bond Counsel, and discussing questions and issues with the Issuer's Bond Counsel and/or arbitrage rebate consultant. D. Annual Checklist of Tax -Exempt Bond Compliance Checklist. The Bond Compliance Officer will complete the attached "Annual Tax -Exempt Bond Compliance Checklist" with respect to all outstanding Bonds on or before December 31st of each annual period. The Bond Compliance Officer will retain a copy of each completed and signed checklist in a file that is retained in accordance with the document retention requirements described in Section II.F above. CAP081414 Page 71 Form of Annual Tax -Exempt Bond Compliance Checklist (To be completed by the "Bond Compliance Officer" as described in the Tax Exempt Bond Post -Issuance Compliance Policy) Date Completed: If an answer to any question above is "Yes", or the answer is unclear, the Bond Compliance Officer shall consult with the Issuer's bond counsel to determine (i) if the event could adversely impact the tax -exemption of the Issuer's outstanding tax-exempt bonds andlor (ii) whether any action needs to be taken during the upcoming annual period to ensure compliance with the tax-exempt bond restrictions. The undersigned is the "Bond Compliance Officer" as described in the Tax -Exempt Bond Compliance Procedures and has completed the above checklist to the best of the knowledge of the undersigned. Signature of Bond Compliance Officer (Print name) CAP081414 Page 72 Yes No Has there been a sale of all or any portion of a facility financed with tax- exempt bonds (a "Project")? Has there been a lease of all or any portion of a Project to any party other than a state or local government? Has the Issuer entered into a new, or amended an already existing, management or service contract related to a Project? Has the Issuer entered into a naming rights agreement relating to all or any portion of a Project? Has the Issuer entered into any other arrangement with an entity, other than a state or local government, that provided legal rights to that entity with respect to a Project? Will there be a rebate/yield restriction arbitrage computation date during the upcoming annual period? Is the Issuer out of compliance with the record retention requirements as described in Section IV of the Tax -Exempt Bond Compliance Procedures? If an answer to any question above is "Yes", or the answer is unclear, the Bond Compliance Officer shall consult with the Issuer's bond counsel to determine (i) if the event could adversely impact the tax -exemption of the Issuer's outstanding tax-exempt bonds andlor (ii) whether any action needs to be taken during the upcoming annual period to ensure compliance with the tax-exempt bond restrictions. The undersigned is the "Bond Compliance Officer" as described in the Tax -Exempt Bond Compliance Procedures and has completed the above checklist to the best of the knowledge of the undersigned. Signature of Bond Compliance Officer (Print name) CAP081414 Page 72 Ordinance Chapter 3.30 Marijuana and Marijuana Infused Product Tax CAP081414 Page 73 A CENTRAL POINT ADMINISTRATION DEPARTMENT 140 South 3rtl Street Central Point, OR 97 SO2 (S41) 664-7602 www.rentra l pointoregon.gov STAFF REPORT July 241h, 2014 AGENDA ITEM: Ordinance No. _ An ordinance establishing Central Point Municipal Code Chapter 3.30 — marijuana and marijuana -infused product tax. STAFFSOURCE: Chris Clayton, City Manager Sydnee Dreyer, City Attorney BACKGROUND/SYNOPSIS: The City of Central Point Council has been very proactive in creating time, place and manner restrictions on medical marijuana dispensaries established under Oregon House Bill 3460. To date, there are 198 approved and 115 provisionally approved dispensaries in Oregon; however, the City of Central Point has received zero applications. Furthermore, the City of Central Point has exercised State -granted authority provided by Senate Bill 1531 to invoke a one-year moratorium on the establishment of medical marijuana facilities (expires in May of 2015). Throughout this entire process, the Central Point City Council has remained resolute in its desire to discourage the establishment of such facilities within the City of Central Point. Moreover, the City Council is acutely aware of the conflict between state and federal law on this subject and has made every attempt to remain legally compliant. Unfortunately, the lack of consistency between state and federal law/policy has put many cities and counties in a compromised position. November's general election will likely (signature collection is underway) include Oregon ballot initiative #53 (officially known as the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act). Section 442 of this ballot measure is specifically aimed at limiting local government's ability to offset public safety-related impacts/costs by collecting a product tax on marijuana -based products. Section #42's language is as follows: No county or city of this state shall impose any fee or tax, including occupation taxes, privilege taxes and inspection fees, in connection with the purchase, sale, production, processing, transportation, and delivery ofmarijuana items. Because this language does not specifically repeal a local marijuana tax in effect at the time of the measures passage, and because this language can be interpreted to read "No county or city of this state shall [after the effective date of this measure] impose any fee or tax..." it can be argued that this initiative's language would not pre-empt a taxation ordinance if it is adopted by the City Council prior to November's election. City Council adoption does not guarantee that this product tax would not be legally challenged; however, absent invalidation by a state court, this product tax CAP081414 Page 74 ordinance would survive voter approval of ballot initiative #53, and not adopting the ordinance prior to November, should the initiative pass, would certainly preclude future action on this matter. The ordinance presented for Council consideration is a gross receipts tax on the sale of marijuana, medical marijuana and marijuana -infused products. A gross receipts tax is applied to the total gross taxable revenues of a business. It is similar to a sales tax except that it is levied on the seller rather than the purchaser. The seller is responsible for maintaining accurate records of its gross revenues from taxable goods and services and then remitting a percentage to the taxing entity. Many businesses that are subject to a gross receipts tax will show the tax on the bill of sale they present to the customer, but it is nonetheless the business that is responsible for paying it. Central Point's transient occupancy tax (hotel/motel) is a gross receipts tax. A gross receipts tax has the administrative advantages of ease of collection and ease of auditing. Finally, I would be remiss not to mention that the proposed ordinance relies heavily on similar ordinances adopted by several Colorado cities, the City of Ashland and taxing methodology that currently exists in the Central Point Municipal Code (transient room occupancy tax). FISCAL IMPACT: Ballot Initiative 453: The proposed ballot initiative does provide for a state-wide taxing structure on the sale of legalized/medical marijuana; however, it does so in the following manner: Section #33 A tax is imposed on the privilege of engaging in business as a marijuana producer at the rate of.• $35 dollars per ounce of all marijuana flowers; $10 dollars per ounce on all marijuana leaves; and $5 dollar for every immature plant. The taxes collected under this section would be placed in the Oregon Marijuana Account and would be distributed based on section #44 of the proposed ballot initiative: At the end of each month, the Oregon Liquor Control Commission shall certify the amount of moneys available for distribution in the Oregon Marijuana Account and, after withholding such moneys as it may deem necessary to carry out its obligations under sections 3 to 70 of this Act, shall within 35 days of the month.for which a distribution is made distribute the moneys as follows: Forty percent shall be transferred to the Common School Fund Twenty percent shall be transferred to the Mental Health Alcoholism and Drug Services Account Fifteen percent shall be transferred to the State Police Account Ten percent shall be transferred to cities based on population Ten percent shall be transferred to counties 5 percent shall be transferred to Oregon Health Authority. City Revenue: There is no precise way of predicting whether a medical marijuana dispensary will develop with or without the passage of ballot initiative 53. Furthermore, predicting the tax revenue generated by the development of such a facility is equally inaccurate, although it is apparent that Central Point's share of 10% of whatever is left in the Oregon Marijuana Account after OLCC CAP081414 Page 75 withholds "such moneys as it deems necessary," will likely be insufficient to address the impacts to Central Point. City Expenditures: Similar to alcohol, the legalization of marijuana will likely impact the costs associated with providing adequate public safety. At a minimum, new programs will need to be developed for prevention/education and treatment. These new program costs will be in addition to the necessary training required for our public safety officers. ATTACHMENTS: I. Ordinance creating chapter 3.30 of the Central Point Municipal Code establishing a tax on marijuana and marijuana -infused products. RECOMMENDATION: I. The proposed ordinance is consistent with previous efforts of the City Council to create a disincentive to the establishment of a medical marijuana dispensaries/facilities within Central Point. 2. The proposed ordinance will create the opportunity to provide general fund revenue and offset the public safety costs/impacts associated with the legalization of marijuana 3. The City's strategic plan emphasizes a proactive city government that adopts policies aligning with the community's values. 4. Central Point citizen surveys conducted in 2011 & 2013 identify public safety as the highest priority for citizens of Central Point. City Staff Recommendation: City staff is recommending adoption of the attached ordinance amendments. PUBLIC HEARING REQUIRED: Yes SUGGESTED MOTION: I move to approve the first reading of Ordinance number creating Central Point Municipal Code chapter 3.30 establishing a marijuana and marijuana -infused product tax. Return to Agenda CAP081414 Page 76 ORDINANCE NO. AN ORDINANCE ESTABLISHING CENTRAL POINT MUNICIPAL CODE CHAPTER 3.30 MARIJUANA AND MARIJUANA -INFUSED PRODUCT TAX Recitals: A. Wordsi.,,,ed-through are to be deleted and words in bold are added B. Section 4 of the Central Point Charter provides: Powers of the City. The City shall have all powers which the constitutions, statutes and common law of the United States and of this state expressly or impliedly grant or allow municipalities, as fully as though this charter specifically enumerated each of those powers. C. the City desires to tax the sale or transfer of marijuana and marijuana -infused products within the City. THE PEOPLE OF THE CITY OF CENTRAL POINT DO ORDAIN AS FOLLOWS: SECTION L Title 3 Revenue and Finance of the Central Point Municipal Code hereby adds a new Chapter 3.30, establishing a tax on the sale of marijuana and marijuana -infused products, as follows: CHAPTER 3.30 MARIJUANA AND MARIJUANA INFUSED PRODUCT TAX Sections: 330.010 Purpose 330.020 Definitions 330.030 Levy of Tax 330.040 Deductions 330.050 Seller Responsible for Payment of Tax 330.060 Penalties and Interest 330.070 Failure to Report and Remit Tax — Determination of Tax 330.080 Appeal 330.090 Refunds 330.100 Actions to Collect 330.110 Confidentiality 330.120 Audit of Books, Records or Persons 330.130 Penalties 330.140 Forms and Regulations CAP081414 Page 77 330.010 Purnose. For the purposes of this Chapter, every person who sells marijuana, medical marijuana or marijuana -infused products in the City of Central Point is exercising a taxable privilege. The purpose of this Chapter is to impose a tax upon the retail sale of marijuana, medical marijuana, and marijuana -infused products. 3.30.020 Definitions. When not clearly otherwise indicated by the context, the following words and phrases as used in this chapter shall have the following meanings: 1. "Director" means the Director of Finance for the City of Central Point or his/her designee. 2. "Gross Taxable Sales" means the total amount received in money, credits, property or other consideration from sales of marijuana, medical marijuana and marijuana -infused products that is subject to the tax imposed by this chapter. 3. "Marijuana" means all parts of the plant of the Cannabis family Moraceae, whether growing or not; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its resin, as may be defined by Oregon Revised Statutes as they currently exist or may from time to time be amended. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted there from), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. 4. "Oregon Medical Marijuana Program" means the office within the Oregon Health authority that administers the provisions of ORS 475.300 through 475.346, the Oregon Medical Marijuana Act, and all policies and procedures pertaining thereto. 5. "Person" means natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business, trust, organization, or any group or combination acting as a unit, including the United States of America, the State of Oregon and any political subdivision thereof, or the manager, lessee, agent, servant, officer or employee of any of them. 6. "Purchase or Sale" means the acquisition or furnishing for consideration by any person of marijuana within the City. 7. "Purchaser" means any person who acquires marijuana from a seller for any valuable consideration. 8. "Registry identification cardholder" means a person who has been diagnosed by an attending physician with a debilitating medical condition and for whom the use of medical marijuana may mitigate the symptoms or effects of the person's debilitating medical condition, and who has been issued a registry identification card by the Oregon Health Authority. CAP081414 Page 78 9. "Retail sale" means the transfer of goods or services in exchange for any valuable consideration. 10. "Seller" means any person who is required to be licensed or has been licensed by the State of Oregon to provide marijuana or marijuana -infused products to purchasers for money, credit, property or other consideration. 11. "Tax" means either the tax payable by the seller or the aggregate amount of taxes due from a seller during the period for which the seller is required to report collections under this chapter. 12. "Taxpayer" means any person obligated to account to the Finance Director for taxes collected or to be collected, or from whom a tax is due, under the terms of this chapter. 3.30.030 Levy of Tax. A. There is hereby levied and shall be paid a tax by every seller exercising the taxable privilege of selling marijuana and marijuana -infused products as defined in this chapter. B. The amount of tax levied is as follows: 1) Five percent (5%) of the gross sale amount paid to the seller by a registry identification cardholder. 2) Ten percent (10%) of the gross sale amount paid to the seller of marijuana and marijuana -infused products by individuals who are not purchasing marijuana under the Oregon Medical Marijuana Program. C. The purchaser shall pay the tax to the seller at the time of the purchase or sale of marijuana. 330.040 Deductions. The following deductions shall be allowed against sales received by the seller providing marijuana: A. Refunds of sales actually returned to any purchaser; B. Any adjustments in sales which amount to a refund to a purchaser, providing such adjustment pertains to the actual sale of marijuana or marijuana -infused products and does not include any adjustments for other services furnished by a seller. 3.30.050 Seller Responsible For Payment Of Tax. A.Evcry seller shall, on or before the fifteenth (151') day of the month following the end of each calendar quarter (in the months of April, July, October and January) make a return to the Director, on forms provided by the City, specifying the total sales subject to this chapter and the amount of tax collected under this chapter. The seller may request or the Director may establish shorter reporting periods for any seller if the seller or Director deems it necessary in order to ensure collection of the tax and the Director may require further information in the return relevant to payment of the tax. A return shall not be considered riled until it is actually received by the Director. The quarters are: CAP081414 Page 79 First quarter: January, February, March Second quarter: April, May, June Third quarter: July, August, September Fourth quarter: October, November, December B. At the time the return is filed, the full amount of the tax collected shall be remitted to the Director. Payments received by the Director for application against existing liabilities will be credited toward the period designated by the taxpayer under conditions that are not prejudicial to the interest of the City. A condition considered prejudicial is the imminent expiration of the statute of limitations for a period or periods. C. Non -designated payments shall be applied in the order of the oldest liability first, with the payment credited first toward any accrued penalty, then to interest, then to the underlying tax until the payment is exhausted. Crediting of a payment toward a specific reporting period will be first applied against any accrued penalty, then to interest, then to the underlying tax. If the Director, in his or her sole discretion, determines that an alternative order of payment application would be in the best interest of the City in a particular tax or factual situation, the Director may order such a change. The Director may establish shorter reporting periods for any seller if the Director deems it necessary in order to ensure collection of the tax. The Director also may require additional information in the return relevant to payment of the liability. When a shorter return period is required, penalties and interest shall be computed according to the shorter return period. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by sellers pursuant to this chapter shall be held in trust for the account of the City until payment is made to the Director. A separate trust bank account is not required in order to comply with this provision. D. For good cause, the Director may extend the time for filing a return or paying the tax for not more than one month. Further extension may be granted only by the city council. A seller to whom an extension is granted shall pay interest at the rate of one percent per month on the amount of tax due, without proration for a fraction of a month. If a return is not filed and if the tax and interest due are not paid by the end of the extension granted, the interest shall become a part of the tax for computation of penalties prescribed in Section 3.30.060. E. Every seller required to remit the tax imposed in this chapter shall be entitled to retain five percent (5%) of all taxes due to defray the costs of bookkeeping and remittance. Every seller must keep and preserve in an accounting format established by the Director records of all sales made by the dispensary and such other books or accounts as may be required by the Director. Every seller must keep and CAP081414 Page 80 preserve for a period of three (3) years all such books, invoices and other records. The Director shall have the right to inspect all such records at all reasonable times. 330.060 Penalties And Interest. A. Any seller who fails to remit any portion of any tax imposed by this chapter within the time required shall pay a penalty of ten percent (10%) of the amount of the tax. B. Any seller who fails to remit any delinquent remittance on or before a period of 60 days following the date on which the remittance first became delinquent, shall pay a second delinquency penalty of fifteen percent (15%) of the amount of the tax in addition to the amount of the tax and the penalty first imposed. C. If the Director determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to the penalties stated in subparagraphs A and B of this section. D. In addition to the penalties imposed, any seller who fails to remit any tax imposed by this chapter shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. E. Every penalty imposed, and such interest as accrues under the provisions of this section, shall become a part of the tax required to be paid. F. A seller who fails to remit the tax within the required time may petition the city council for waiver and refund of the penalty or a portion of it. The council may, if good cause is shown, direct a refund of the penalty or a portion of it. Any such hearing will be conducted under the procedures described in section 3.30.080. 3.30.070 Failure To Report and Remit Tax —Determination of Tax by Director. If anv seller should fail to make, within the time provided in this chapter, anv report of the tax required by this chapter, the Director shall proceed in such manner as deemed best to obtain facts and information on which to base the estimate of tax due. As soon as the Director shall procure such facts and information as is able to be obtained, upon which to base the assessment of any tax imposed by this chapter and payable by any seller, the Director shall proceed to determine and assess against such seller the tax, interest and penalties provided for by this chapter. In case such determination is made, the Director shall give a notice of the amount so assessed by having it served personally or by depositing it in the United States mail, postage prepaid, addressed to the seller so assessed at the last known place of address. Such seller may appeal such determination as provided in section 3.30.080. If no appeal is filed, the Director's determination is final and the amount thereby is immediately due and payable. CAP081414 Page 81 3.30.080 Appeal. A.Any seller aggrieved by any decision of the Director with respect to the amount of such tax, interest and penalties, if any, may appeal to the city council by filing a notice of appeal with the Director within fifteen (15) days of mailing of the notice of a decision. The city manager shall fix a time and place for hearing the appeal, as prescribed by the city council, and shall give the appellant fifteen days written notice of the time and place of the hearing before the city council. B. The appellant shall pay a nonrefundable appeal fee to facilitate the appeal. Appeal Fees shall be set at $150 for each decision appealed, and may be adjusted by Resolution of the city council. C. The parties shall be entitled to appear personally and by counsel and to present such facts, evidence and arguments as may tend to support the respective positions on appeal. D. The city council shall afford the parties an opportunity to be heard at an appeal hearing after reasonable notice. The city council shall take such action upon the appeal it sees fit. The city council shall at a minimum: 1) At the commencement of the hearing, explain the relevant issues involved in the hearing, applicable procedures and the burden of proof. 2) At the commencement of the hearing place on the record the substance of any written or oral ex parte communications concerning any relevant and material fact in issue at the hearing which was made outside the official proceedings during the pendency of the proceeding. The parties shall be notified of the substance of the communication and the right to rebut the communication. Notwithstanding the above, the parties are prohibited from engaging in ex parte communications with the members of the city council. 3) Testimony shall be taken upon oath or affirmation of the witnesses. 4) The city council shall ensure that the record developed at the hearing shows a full and fair inquiry into the relevant and material facts for consideration for the issues properly before the hearings officer. 5) Written testimony may be submitted under penalty of false swearing for entry into the record. All written evidence shall be filed with the City recorder no less than (5) five working days before the date of the hearing. 6) The city council shall hear and consider any records and evidence presented bearing upon the Director's determination of amount due, and make findings affirming, reversing or modifying the determination. CAP081414 Page 82 7) Informal disposition may be made of any case by stipulation, agreed settlement, consent order or default. F. The action of the Director shall be stayed pending the outcome of an appeal properly filed pursuant to this section. G. Failure to strictly comply with the applicable appeal requirements, including but not limited to the required elements for the written notice of appeal, time for filing of the notice of appeal, and payment of the applicable appeal fee, shall constitute jurisdictional defects resulting in the summary dismissal of the appeal. H. The findings of the city council shall be final and conclusive, and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. 330.090. Refunds. A. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once, or has been erroneously collected or received by the City under this chapter, it may be refunded as provided in subparagraph B of this section, provided a claim in writing, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director within one year of the date of payment. The claim shall be on forms furnished by the Director. l.The Director shall have 20 calendar days from the date of receipt of a claim to review the claim and make a determination in writing as to the validity of the claim. The Director shall notify the claimant in writing of the Director's determination. Such notice shall be mailed to the address provided by claimant on the claim form. In the event aclaim is determined by the Director to be a valid claim, in a manner prescribed by the Director a seller may claim a refund, or take as credit against taxes collected and remitted, the amount overpaid, paid more than once or erroneously collected or received. The seller shall notify the Director of claimant's choice no later than 15 days following the date Director mailed the determination. In the event claimant has not notified the Director of claimant's choice within the 15 day period and the seller is still in business, a credit will be granted against the tax liability for the next reporting period. If the seller is no longer in business, a refund check will be mailed to claimant at the address provided in the claim form. 2.No refund shall be paid under the provisions of this section unless the claimant established the right by written records showing entitlement to such refund and the Director acknowledged the validity of the claim. 330.100 Actions to Collect. Any tax required to be paid by any seller under the provisions of this chapter shall be deemed a debt owed by the seller to the City. Any such tax collected by a seller CAP081414 Page 83 which has not been paid to the City shall be deemed a debt owed by the seller to the City. Within three years after the tax becomes payable or within three years after a determination becomes final, the City may bring an action in the name of the city in the courts of this state, another state or the United States to collect the amount delinquent and penalties and interest. In lieu of filing an action for the recovery, the City, when taxes due are more than 30 days delinquent, can submit any outstanding tax to a collection agency. So long as the City has complied with the provisions set forth in ORS 697.105 (as hereafter amended), in the event the City turns over a delinquent tax account to a collection agency, it may add to the amount owing an amount equal to the collection agency fees, not to exceed the greater of fifty dollars ($50.00) or fifty percent (50%) of the outstanding tax, penalties and interest owing. 3.30.120 Confidentiality. Except as otherwise required by law, it shall be unlawful for the City, any officer, employee or agent to divulge, release or make known in any manner any financial information submitted or disclosed to the City under the terms of this chapter. Nothing in this section shall prohibit: A.The disclosure of the names and addresses of any person who is operating a licensed establishment from which marijuana is sold or provided; or B.The disclosure of general statistics in a form which would not reveal an individual seller's financial information; or C.Presentation of evidence to the court, or other tribunal having jurisdiction in the prosecution of any criminal or civil claim by the Director or an appeal from the Director for amount due the City under this chapter; or D. The disclosure of information when such disclosure of conditionally exempt information is ordered under public records law procedures; or E.The disclosure of records related to a business' failure to report and remit the tax when the report or tax is in arrears for over six months or the tax exceeds five thousand dollars ($5,000). The City Council expressly finds and determines that the public interest in disclosure of such records clearly outweighs the interest in confidentiality under ORS 192.501(5). 3.30.130 Audit of Books. Records or Persons. A. It shall be the duty of every seller liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of three years and six months, all records, books, reports, income tax reports and other matters required by this chapter as may be necessary to determine the amount of such tax as the seller may have been liable for the collection of and payment to the City, which records the Director shall have the right to inspect at all reasonable times as set forth below. Every operator shall maintain records of marijuana purchase and sales, accounting books and records of income. Sellers must, at a minimum, include a cash receipt and deposit journal, and a cash disbursements journal/check register CAP081414 Page 84 for all authorized deductions. These records and books shall reconcile to the tax reports and be auditable. They shall also reconcile to the seller's income tax reports. If the Director finds the books and records of the seller are deficient in that they do not provide adequate support for tax reports filed, or the seller's accounting system is not auditable, it shall be the responsibility of the seller to improve its accounting system to the satisfaction of the Director. B. The City, for the purpose of determining the correctness of any tax return, or for the purpose of an estimate of taxes due, may examine or may cause to be examined by an agent or representative designated by the City for that purpose, any books, papers, records, or memoranda, including copies of seller's state and federal income tax return, bearing upon the matter of the seller's tax return. All books, invoices, accounts and other records shall be made available within the City limits and be open at any time during regular business hours for examination by the Director or an authorized agent of the Director. If any taxpayer refuses to voluntarily furnish any of the foregoing information when requested, the Director may immediately seek a subpoena from the Central Point Municipal Court to require that the taxpayer or a representative of the taxpayer attend a hearing or produce any such books, accounts and records for examination. 330.110 Penalties. A.It is unlawful for any seller or any other person so required to fail or refuse to furnish any return required to be made, or fail or refuse to furnish the supplementary return or other data required by the Director or to enter a false or fraudulent report, with intent to defeat or evade the determination of any amount due required by this chapter. B. Violation of any provision of this chapter of this code shall be punishable by the general penalty. Every day in which the violation is caused or permitted to exist constitutes a separate infraction, and the punishment therefor shall be in addition to any other penalty, interest, sum or charge imposed by this code or this chapter. Delinquent taxes and fees, penalty and interest imposed by this chapter and this code may be collected in a civil action. C. The remedies provided by this section are not exclusive and shall not prevent the City from exercising any other remedy available under the law, nor shall the provisions of this ordinance prohibit or restrict the City or other appropriate prosecutor from pursuing criminal charges under state law or City ordinance. 330.140 Forms And Reeulations. A. The Director is hereby authorized to prescribe forms and promulgate rules and regulations to aid in the making of returns, the ascertainment, assessment and collection of said medical marijuana tax and in particular and without limiting the general language of this chapter, to provide for: 1) A form of report on sales and purchases to be supplied to all vendors; CAP081414 Page 85 2) The records which sellers providing marijuana and marijuana -infused products are to keep concerning the tax imposed by this chapter. SECTION 2. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 3. Savings. Notwithstanding any amendment/repeal, the City ordinances in existence at the time any criminal or civil enforcement actions were commenced, shall remain valid and in full force and effect for purposes of all cases filed or commenced during the times said ordinance(s) or portions thereof were operative. This section simply clarifies the existing situation that nothing in this Ordinance affects the validity of prosecutions commenced and continued under the laws in effect at the time the matters were originally filed. SECTION 4. Codification. Provisions of this Ordinance shall be incorporated in the City Code and the word 'ordinance" may be changed to "code", "article", "section', "chapter" or another word, and the sections of this Ordinance may be renumbered, or re -lettered, provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 2-4) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. Passed by the Council and signed by me in authentication of its passage this day of ,2014. Mayor Hank Williams ATTEST: City Recorder Return to Agenda CAP081414 Page 86 Ordinance Amending Chapter 5.24 Adult Businesses CAP081414 Page 87 A CENTRAL POINT ADMINISTRATION DEPARTMENT 140 South 3rtl Street Central Point, OR 97 SO2 (S41) 664-7602 www.rentra l pointoregon.gov STAFF REPORT August 14", 2014 AGENDA ITEM: Ordinance No. _ An ordinance amending Central Point Municipal Code Chapter 5.24 — Adult Businesses STAFFSOURCE: Chris Clayton, City Manager Sydnee Dreyer, City Attorney BACKGROUND/SYNOPSIS: Earlier this year while reviewing the Central Point Municipal Code for business license issues associated with medical marijuana dispensaries, staff recognized a need to update the adult business license code/chapter. The proposed amendments to Central Point Municipal Code Chapter 5.24 include the following: I. Revision of the "adult business" definition; 2. Revision of the "specified anatomical areas" definition; 3. Elimination of the "adult arcade" definition; 4. Revision of the "adult cabaret' definition; 5. Revision of the "sexual encounter center" definition; 6. Elimination of"adult hotel & adult motel' definition; 7. Elimination of"massage parlor" definition; 8. Elimination of"modeling studio' definition; 9. Revision of "adult theater" definition; 10. Creation of "significant or substantial portion' definition; 11. Elimination of chapter 5.24.030 section B Planning Commission Discretion. FISCAL IMPACT: There appears to be no immediate fiscal impacts; however, new business entering Central Point will now be correctly classified as adult business. Correct classification will result in the corresponding business license fees for an adult business. ATTACHMENTS: I. Ordinance amending chapter 5.24 of the Central Point Municipal Code Adult Businesses RECOMMENDATION: I. The proposed ordinance amendment includes current definitions and updated language that will allow city staff to accurately apply the Central Point Municipal Code to adult business applications. CAP081414 Page 88 City Staff Recommendation: City staff is recommending adoption of the attached ordinance amendments. PUBLIC HEARING REQUIRED: SUGGESTED MOTION: I move to approve the first reading of Ordinance number amending Central Point Municipal Code chapter 5.24 — Adult Businesses. Return to Agenda CAP081414 Page 89 ORDINANCE NO. AN ORDINANCE AMENDING CENTRAL POINT -MUNICIPAL CODE CHAPTER 5.24 ADULT BUSINESSES Recitals: A. Words lined through are to be deleted and words in bold are added. B. Chapter 524 was established in 1981 and is currently out of date in regards to the definition of what is currently considered an "Adult Business". "I HE PEOPLE OF"IHECI"IYOFCEN "IRAL POIN"I DO ORDAIN AS FOLLOWS: SEC "PION I. Chapter 5.24 regulating Adult Businesses is hereby amended to read as follows: Sections: Chapter 524 ADULT BUSINESSES 524.010 Purpose. 524.020 Definitions. 524.030 Regulations for adult businesses. 524.040 License --Required. 524.050 License --Period. 524.060 License --Fees. 524.010 Purpose. It is recognized that the presence of certain "adult businesses" within the community of Central Point may result in adverse social and economic impacts, increased crime incidents, and physical deterioration in the general areas of such businesses. It is evident that regulations applicable to adult businesses are necessary to preserve the integrity of existing commercial areas of the city, and to protect the character, safety and stability of residential areas that are in close proximity to such commercial areas. The purpose of this section is to establish regulations applicable to adult businesses, as defined in the Oregon Revised Statutes and in Section 524.020 of this chapter. 524.020 Definitions. For purposes of this chapter, the following terms and business types are defined in this section: A. "Adult business" includes any adult arcade, adult bookstore, adult cabaret, adult theater, massage pade, sexual encounter center, body y paintingestudio, CAP081414 Page 90 hotel'_ mmeltopless aFs. or other businesses which are characterized by an emphasis on sexually explicit material dealing with "specified anatomical areas" and/or "specified sexual activities," as defined in this section. B. "Specified Anatomical Areas" means: L Less than completely and opaquely covered: a. Human genitals, pubic region; b. Buttocks; and One or both female breasts without a circular covering, centered on the nipple that is at least three inches in diameter and does not simulate the organ covered; and 2. Human male genitals in a discernibly turgid state, even if completely and opaquely covered. C. "Specified sexual activities" means: L Human genitals in a state of sexual stimulation or arousal; and/or 2. Acts of human masturbation, sexual intercourse, sodomy, sexual stimulation or arousal; and/or 3. Fondling or other erotic touching of human genitals, pubic region, buttock, or female breast. ri "n,Wll .. ...,..,: ...,...d .,hi -h ..............._a.. ,... .. .,..�,., general public, but v hich excludes minors as a legal or prevailing business I D€. "Adult bookstore" means any store having a significant portion of its stock in trade, books, magazines, newspapers, or other printed or written material or any pictures, drawings, photographs, motion pictures, or other pictorial representations which are distinguished by their emphasis on matter depicting, describing or relating to "specified anatomical areas' or "specified sexual activities," as defined in this section. EF. "Adult cabaret means a nightclub, adult theate_ .,6... or other establishment hick ...,. a _ .. .... .... .i...... ...... a _a .i...... ....,. _s go a,..:,, a.. .... ... .....:.... .s female impersonators, OF similar entertainers, OF any establishment which fid ruffe' SUCII is an establishment having as its primary attraction live exhibition (either for direct viewing, closed circuit viewing, or viewing through a transparent partition) for patrons either individually or in groups, where a substantial portion of the material presented is characterized by an emphasis on "specified anatomical areas" or "specified sexual activities" and excludes minors as a legal or prevailing business practice. CAP081414 Page 91 FG. "Sexual encounter center' means any business, agency, or person who, for any form of consideration or gratuity, provides a place where persons may congregate, assemble or associate for the purpose of engaging in sem,"�'ct "specified sexual activities". ol,"ed m -rut television OF other media, material M hich is distinguished Orchdrdcu-Fi7-d b .he emphasis ,... matter depicting or describing or related to "specified .e.. .it activities" "special anatomical ...e. , , hotel ,... motel havinghourlyones and o.,,.h.diRg PsiRoFs as ., i gal ,._.__ .,ailiR. h ....:.. ......_..,..:,.e 1. "Massage parlor" means any establishment that provides personal massage and is no! a part of or directly related .,.. licensed mer,..it or physical .hemp facility j. "Modeling studio" means any establishment in m hich figure models are pFoN ided to sculptured, photographed, OF similarly depicted, and v, hich excludes minors as a legal OF businesspractice. K. G. "Adult theater' means any theater or similar facility which is used primarily for presenting material disc .guish a •.- by with an emphasis on matter depicting describing or relating to "specified anatomical areas' or "specified sexual activities," for observation by patrons therein. H. "Significant or substantial portion" means more than 25 percent of the total cost of the inventory of merchandise for sale in the establishment, whether at wholesale or retail, or more than 25 percent of the establishment's gross sales per month, whether wholesale or retail. 5.24.030 Regulations for adult businesses. ........................................................................................................................................................................................................................ A. Adult businesses may be granted a conditional use permit by the planning commission in accordance with the requirements of the zoning district in which the business is proposed, and in accordance with the following regulations: 1. The proposed use complies with all requirements set forth for the issuance of a conditional use permit; 2. The lot on which the business is proposed to be located is classified C-5 (thoroughfare commercial); 3. The subject lot is not within two hundred feet of the nearest residential (R) zoning district; 4. The lot is not within five hundred feet of any lot upon which there is located a church, educational institution primarily attended by minors, a public park or recreational facility, a day nursery or child care center, a mobile home park, or any other public facility which is customarily utilized by minors; CAP081414 Page 92 5. The lot is not within one thousand feet of any lot upon which there is located another adult business; 6. The exterior appearance of the structure shall be consistent with the appearance of existing commercial structures on abutting lots or within the immediate neighborhood, so as not to cause blight, deterioration, or avoidable depreciation in property values within the general vicinity; 7. The business shall be permitted an identification sign but shall not exhibit advertisements, displays, or any other promotional or advertising materials that may be visible to the public outside the structure; 8. All doorways, windows and other openings shall be located, covered or screened in such a manner to prevent a view into the interior from any exterior public or semipublic area; 9. No adult business, as defined in this chapter, shall be kept open for business between the hours of ten p.m. and ten a.m., except as specifically permitted by the terms of the conditional use permit. B C. Applicants for licenses under this chapter must file with the city recorder a sworn application in writing for the license which shall give the following information: L The name of the applicant; 2. Permanent home address and full local address of the applicant; 3. A brief description of the nature of the business and goods to be sold, if any; 4. Length of time for which the right to do business is desired; 5. The location of the proposed adult business. C D. Any person violating any of the provisions of this chapter shall, upon conviction thereof, be punished by a fine not to exceed two hundred dollars or by imprisonment not to exceed thirty days, or by both such fine or by imprisonment. 5.24.040 License—Required. No person, or his employee or agent, shall engage in or conduct within the city any adult business unless the license fee has been paid and a license issued as provided herein. 5.24.050 License—Period. License for adult businesses shall be for semi-annual periods commencing on July I st and January I st of each year. No license fee shall be for Tess than the full six-month quarter semi-annual period. CAP081414 Page 93 5.24.060 License -Lees. The license fee to be charged by the city designee for an adult business license shall be as set forth in the City of Central Point Business License Fee Schedule SECTION 2. Codification. Provisions of this Ordinance shall be incorporated in the City Code and the word 'ordinance" may be changed to "code", "article", "section', "chapter" or another word, and the sections of this Ordinance may be renumbered, or re -lettered, provided however that any Whereas clauses and boilerplate provisions need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. Passed by the Council and signed by me in authentication of its passage this day of , 2014. Mayor Hank Williams ATTEST: City Recorder Return to Agenda CAP081414 Page 94 Ordinance Amending Chapter 17.60 Interim Water Service CAP081414 Page 95 STAFF REPORT AGENDA ITEM: File No. 14007 CENTRAL POINT STAFF REPORT August 14, 2014 Planning Department lour Humphrey, AICP Community Development Director Second Reading of Interim Water Service Standards Ordinance penrritting interim water services for lands within the Tolo Area (CP -IB) urban reserve; Applicant: City of Central Point. STAFF SOURCE: Tom Humphrey AICP, Community Development Director BACKGROUND: Currently the City has before it a proposal for inclusion of approximately 50 acres to the City's UGB. The area is within CP -IB and is designated for industrial development per the City's Regional Plan Element. It is the applicant's objective to include the properties in the UGB (2014), annex (2015), rezone (2015), and develop the property (2016) for traded sector industrial purposes (trucking). A major impediment to the applicant's objective is the availability of public water, which is a requirement of development in the City. Based on the City's Master Water System Plan the City's water service will not be extended to this urban reserve area until 2028. The estimated cost to extend water seryice to the proposed UGB area is 54,200,000. City CIP funding for the extension is not scheduled until, at the earliest, 2020. This cost includes an additional estimated $800,000 owner responsibility to extend the water main the remaining distance to service their property. At the first reading of this ordinance, the City Council elected to pursue the last of the three the options listed below: I. Require developers to hear the total cost of the x•atersystens and cstensions. Given the cost of a water system to service the area this is not a financially feasible option for any one developer. 2. Have the City hear the cost of the cstension and allocate the costs to future projects. To undertake this option the City would have to raise its water rates, with the additional costs borne by the existing residents. Of all the land uses (residential, commercial, industrial) industrial has the slowest absorption rate. 3. Allow an interim solution, such as presented in the draji Interim Water Service Standards Ordinance. This option would allow for development and a binding commitment to the construction of a public water system when financially feasible. The Interim Water Service Standards Ordinance requires developers to acknowledge: a. That they are aware of their ultimate responsibility to financially participate in an improvement district for a pubkc water system when available; and to That there are interim water system standards that must be met as a condition of development. ISSUES: CP -I B is the City's most significant area for traded sector development and family wage job creation. Without an interim solution to the provision of water for domestic and fire safety the area cannot be developed and the City will lose family wagejob opportunities. The Interim Water Service Standards Ordinance applies only to CP -I B and is limited to ind us trial, commercial land uses. CAP081414 Page 96 EXHIBITS/ATTACHMENTS: Attachment "A" — Ordinance No. An Ordinance Amending CPMC Chapter 17.60 by Adding Provisions for Interim Water Service and Development Standard for Lands within the Tolo Area (CP -H3) Urban Reserve ACTION: Consider proposed amendments and 1) adopt the ordinance, 2) make further revisions and postpone action on the ordinance at this time or 3) deny the ordinance. RECOMMENDATION: Return to Agenda CAP081414 Page 97 ORDINANCE NO. AN ORDINANCE AMENDING CPMC CHAPTER 17.60 BYADDING PROVISIONS FOR INTERIM WATER SERVICE AND DEVELOPMENT STANDARDS FOR LANDS WITHIN THE TOLD AREA (CP -1B) URBAN RESERVE RECITALS: A. Pursuant to CPMC, Chapter 1.01.040, the City Council, may from time to time make revisions to its municipal code which shall become part of the overall document and citation. B. On June 3, 2014, the Central Point Planning Commission recommended approval of a code amendment to CPMC Chapter 17.60 adding Interim Water Service and Development Standards. C. On July 24, 2014, the City of Central Point City Council held a property advertised public hearing; reviewed the Staff Report and findings; heard testimony and comments, and deliberated on approval of the Municipal Code Amendment. D. Words linedthroughare to be deleted and words in bold are added. THE PEOPLE OF CENTRAL POINT DO ORDAIN AS FOLLOWS: SECTION 1. Amendments to Chapter 17.60 to add provisions for interim water service and development standards for lands within the Tolo Area (CP -I B) urban reserve. Chapter 17.60 GENERAL REGULATION Sections: 17.60.220 Interim Water Service and Development Standards 17.60.220 Interim Water Service and Development Standards A. Purpose. The purpose of this Section is to establish regulations permitting interim water service for new development within CP -16 where the municipal public water system cannot be immediately extended but where traded sector and support uses will produce economic growth and development. B. Applicability. This Section shall apply exclusively to lands located within the area shown on the below map (the eligible lands) upon inclusion in the City's Urban Growth Boundary and annexation to the City. Nothing in this Section shall be construed to waive or otherwise interfere with the authority of the Oregon Water Resources Department, nor shall this ordinance prevent the repair or replacement of existing domestic wells which supply existing dwellings, nor shall it prevent the CAP081414 Page 98 issuance of well permits for residential uses where such land is under the jurisdiction of Jackson County and zoned to permit residential uses. C. Interim Water Service Needs Agreement. Before eligible lands are included within the City's Urban Growth Boundary the owner of the land shall enter into an Interim Water Service Needs Agreement on forms that the City will provide which acknowledges that: 1. A public water system is not available and that it is the owners responsibility, at time of development, to demonstrate the owners ability to provide, both physically and financially, adequate private water service for the proposed development; 2. At such time as a public water system becomes available it will be the owner's responsibility, at the owner's sole cost and expense, to connect to the public water system; and 3. Prior to issuance of a Development Permit the owner will apply for and obtain an Interim Water Service Agreement pursuant to Subsection D. D. Interim Water Service Agreement. At time of a development proposal the owner shall enter into an Interim Water Service Agreement with the City. The Agreement shall be entered into prior to final plat approval for a partition or subdivision, or the issuance of a building permit by the City, and shall demonstrate compliance with the following standards: 1. After consulting with Fire District #3, an Applicant for interim water service shall cause the preparation and submittal of engineered plans to Fire District #3. The engineered plans shall identify the minimum domestic and fire suppression water needs, the proposed water source, storage and distribution facilities necessary to meet the minimum water needs for both domestic use and fire suppression. The engineered plans shall be prepared by a qualified professional engineer licensed in Oregon that bears his/her professional stamp and seal and shall include an engineer's estimate of the cost to construct the water system per the approved engineered plans. CAP081414 Page 99 i TR s' —INTERSTATE 5-7�— �� oii-- - Eligible Interim rim Water w V. JM—ERITA Servic wamoo Urban ..Reserves WILLOW SPRINGSRo C. Interim Water Service Needs Agreement. Before eligible lands are included within the City's Urban Growth Boundary the owner of the land shall enter into an Interim Water Service Needs Agreement on forms that the City will provide which acknowledges that: 1. A public water system is not available and that it is the owners responsibility, at time of development, to demonstrate the owners ability to provide, both physically and financially, adequate private water service for the proposed development; 2. At such time as a public water system becomes available it will be the owner's responsibility, at the owner's sole cost and expense, to connect to the public water system; and 3. Prior to issuance of a Development Permit the owner will apply for and obtain an Interim Water Service Agreement pursuant to Subsection D. D. Interim Water Service Agreement. At time of a development proposal the owner shall enter into an Interim Water Service Agreement with the City. The Agreement shall be entered into prior to final plat approval for a partition or subdivision, or the issuance of a building permit by the City, and shall demonstrate compliance with the following standards: 1. After consulting with Fire District #3, an Applicant for interim water service shall cause the preparation and submittal of engineered plans to Fire District #3. The engineered plans shall identify the minimum domestic and fire suppression water needs, the proposed water source, storage and distribution facilities necessary to meet the minimum water needs for both domestic use and fire suppression. The engineered plans shall be prepared by a qualified professional engineer licensed in Oregon that bears his/her professional stamp and seal and shall include an engineer's estimate of the cost to construct the water system per the approved engineered plans. CAP081414 Page 99 2. The engineered interim water service plans shall be submitted to Fire District #3 which will have sole authority to determine, on behalf of the City, whether the plans comply with the following standards and provided that reasonable and appropriate conditions may be attached by Fire District #3 to the approved plans: a) Minimum Water Source, Water Storage, and Water Pressure Standards. The engineering plans shall comply with and be governed by Oregon law, including the 2010 Oregon Fire Code, as amended, with respect to water source, water storage, minimum water pressure for domestic and fire suppression purposes, and for any other matter concerning the engineering and delivery of interim water service pursuant to this Section. An applicant shall provide evidence sufficient from the Oregon Water Resources Department to establish a lawful right to use ground or surface water to supply interim water service. Water Quality. Water supplied by groundwater for interim water service and which is intended for human consumption shall meet State of Oregon water quality standards for drinking water. Wells shall be tested annually for quality in accordance with Oregon law. b) Approval of Engineered Plans for Interim Water Service. Fire District #3 shall approve the engineered plans when such plans are deemed to comply with the standards for service set forth in above Subsection (D)(2)(a). Fire District q3 will transmit a copy of the approved engineering plans and cost estimate to the City promptly following its approval, along with any conditions recommended to be incorporated into the Interim Water Service Agreement. The City may then enter into an Interim Water Service Agreement with the property owner. 3. As a condition of the Interim Water Service Agreement the Applicant shall be required to complete construction of the approved interim water system prior to issuance of a Certificate of Occupancy. Prior to issuance of a building permit or final plat the Applicant shall provide the City with verification by the Oregon Water Resources Department that the project is exempt, or has obtained the necessary permits from the Oregon Water Resources Department. E. Limitations on Interim Water Service. Interim water service in accordance with this Section and as a prerequisite to the issuance of Development Permits shall only be approved for industrial, commercial and institutional uses and supporting uses thereof. Residential uses other than those in conjunction with permitted industrial, commercial and institutional uses, are not eligible to receive approval for interim water service. However, nothing in this Section shall be construed to prevent the repair or replacement of existing domestic wells which supply existing dwellings, nor shall it prevent the issuance of well permits for residential uses where such land is under the jurisdiction of Jackson County and zoned to permit residential uses. CAP081414 Pave 100 F. Duration of Interim Water Service. Once an Interim Water Service Agreement is approved by the City, interim water services may be installed, subject to approval by the Oregon Water Resources Department, by the owner and continued to be used in accordance with the terms of the Agreement and this Section until such time that: 1. A permanent public water supply and delivery system is installed in the area and adequate water supply mains are located within 300 feet of any property authorized for interim water service or otherwise meets the requirements of the Central Point Municipal Code. At such time as a public water system is available the City will provide written notice to the owner who shall be required within ninety (90) days or such greater time as the parties may agree to properly abandon the interim water system, and connect to the public water system. Such connection shall be at the owner's sole cost and expense. It is further provided that nothing in this Section shall prevent the City, at its sole discretion, to permit the continued use of interim water for landscape irrigation or for any other lawful purpose after connection to a permanent public water system. Where it is proposed and lawfully permissible to interconnect the interim and public water systems, proper backflow prevention devices) shall be installed; and 2. Additional development is proposed on the property, or additional off-site development that will jointly use the interim water system approved by the Agreement, at which time an amended Agreement will be required. G. Shared Services. Authorized interim water service provided by one or more wells located on a parcel may be permissibly shared, subject to approval by the Oregon Water Resources Department, with other adjacent and nearby properties subject to an amended Interim Water Service Agreement, prepared in accordance with Section D that includes all affected properties. H. Binding Agreement. Approval of an Interim Water Service Needs Agreement and an Interim Water Service Agreement by the City shall be in the form of a binding, civilly enforceable legal contract between the City and owner of the property for which interim water service approval is sought. Both the Interim Water Service Needs Agreement and the Interim Water Service Agreement shall be recorded and run with the land and be binding upon successors in interest. Upon connection to a public water system the Interim Water Service Needs Agreement and the Interim Water Service Agreement shall be terminated pending City's approval, after which the termination shall be recorded. PASSED by the Council and signed by me in authentication of its passage this _ day of July 2014. ATTEST: City Recorder CAP081414 Page 101 Mayor Hank Williams Return to Agenda Resolution Ratifying the General Services Collective Bargaining Agreement CAP081414 Page 102 l A CENTRAL ADMINISTRATION DEPARTMENT POINTChris Clayton, City Manager • Deanna Casey, City Recorder • Barb Robson, Human Resources Director STAFF REPORT August 14, 2014 AGENDA ITEM: General Collective Bargaining Agreement Ratification Consideration of Resolution No. ___—Ratifying the General Service Collective Bargaining Agreement STAFF SOURCE: Barbara Robson, Human Resources Director HISTORY: On June 24, 2014 the City and General Service bargaining teams tentatively agreed to a 3 -year successor collective bargaining agreement. The agreement requires ratification by both parties. The bargaining unit held a ratification vote on July 8, 2014 that resulted in a "no" vote. The reason for the failed ratification vote was identified as a something that could be "worked out" relatively easily between the parties. Subsequently, the Teamsters business agent and the city's HR Director have reached a new tentative agreement. Due to the timing of the tentative agreement, the union had not yet met for a ratification vote at the time this staff report was written. The union and the city agreed to relax the ground rule calling for the union to ratify prior to the council voting. PROPOSAL: It is proposed that the Council ratify the bargained agreement as presented. The changes to the bargaining agreement since the failed ratification vote are to Articles 9.1(h), 9.3.2, 12.6, and 15.2 The negotiated agreement is a 3 year contract with a 1.6% cost of living adjustment being applied to the current pay scale retroactive to July 1, 2014. It adjusts the pay scale by 0-3.5% effective July 1, 2015 and again on July 1, 2016, based those years' January to January U.S. All Cities CPI -U. Other changes to the agreement include language to allow some latitude for changing future pay dates, clarification on paying for certifications, adjusting travel reimbursement parameters, identifying types of positions that are excluded from this bargaining unit, and language specifying minimum staffing requirements for public works crews with respect to vacation scheduling. The city agreed to remove the additional year required for eligibility for "Step F," but clarified that all step increases are contingent on department head approval. Also, employees hired on or after July 1, 2014 will pay 20% of their health insurance premiums, while current bargaining unit employees will continue to pay 10% of the premium. FISCAL IMPACT: The cost of a 1.6% pay increase on the current pay scale is approximately $22,000. Additionally, three employees will immediately be eligible for Step F; one more will be eligible in January 2015, and another in March 2015. Each step is 5% over the lower step. The change in health insurance premium sharing will result in a savings to the city as new staff are hired, and the change in travel reimbursement parameters will also provide potential savings. i7;140L All At4ILI rE\ ire] Motion to approve Resolution No. A Resolution Ratifying the General Service Collective Bargaining Agreement. ATTACHMENT: TA'd 2014-2017 General Service Collective Bargaining Agreement CAP081414 Page 103 0*9141111W0101611 A RESOLUTION RATIFYING THE GENERAL SERVICES COLLECTIVE BARGAINING AGREEMENT and AUTHORIZING THE MAYOR AND CITY MANAGER TO SIGN THE AGREEMENT RECITALS: 1. The City of Central Point has a fundamental interest in the development of harmonious and cooperative relationships between the City and its employees; and 2. The City recognizes the rights of public employees to organize; and 3. The City recognizes and accepts that the principle and procedure of collective bargaining can alleviate various forms of strife and unrest; and 4. ORS 243 "Collective Bargaining' defines and outlines the policies involved in collective bargaining between public entities and public employers; and S. The general service collective bargaining agreement expired June 30, 2014; The City of Central Point resolves as follows: The General Service Collective Bargaining Agreement between the City of Central Point and Teamsters Local 223 (General Service), as attached, is hereby ratified and adopted, and the Mayor and City Manager are authorized to sign the Agreement. Passed by the Council and signed by me in authentication of its passage this __ day of , 20_ Mayor Hank Williams ATTEST: City Recorder Return to Agenda CAPO81414 Page 104 Collective Bargaining Agreement by and between The City of Central Point (General Service( and Teamsters Local Union No. 223 July 1, 2014 through June 30, 2017 CAP081414 Page 105 TABLE OF CONTENTS PREAMBLE....................................................................................................................................................... 1 1 ARTICLE I - RECOGNITION........................................................................................................................... 1 Section1.1 Recognition.................................................................................................................... 1 Section1.2 Exclusions....................................................................................................................... 1 Section 1.3 New Classification.......................................................................................................... 1 2 ARTICLE II - MANAGEMENT RIGHTS............................................................................................................ 2 Section 2.1 Management Rights....................................................................................................... 2 3 ARTICLE III - MAINTENANCE OF STANDARDS............................................................................................... 3 Section 3.1 Maintenance of Standards.............................................................................................. 3 4 ARTICLE IV - UNION SECURITY..................................................................................................................... 3 Section4.1 Checkoff......................................................................................................................... 3 Section4.2 Fair Share........................................................................................................................ 3 Section 4.3 Religious Objection........................................................................................................ 3 Section4.4 Hold Harmless................................................................................................................. 3 Section4.5 New Hires........................................................................................................................ 4 Section4.6 Bulletin Board................................................................................................................. 4 Section4.7 Right of Access............................................................................................................... 4 Section4.8 City Facilities................................................................................................................... 4 5 ARTICLE V - UNION BUSINESS..................................................................................................................... 4 Section 5.1 Union Business............................................................................................................... 4 Section 5.2 Union Representatives................................................................................................... 4 Section 5.3 Collective Bargaining...................................................................................................... 5 6 ARTICLE VI - NON-DISCRIMINATION........................................................................................................... 5 Section6.1 Gender............................................................................................................................. 5 Section 6.2 Application of Agreement.............................................................................................. 5 7 ARTICLE VII - PERSONNEL FILE.................................................................................................................... 5 Section 7.1 Maintenance of Personnel Files...................................................................................... 5 Section 7.2 Disclosure of Information............................................................................................... 5 Section7.3 Viewing of Files.............................................................................................................. 5 Section 7.4 Representation................................................................................................................ 5 Section 7.5 Employee Signature and Response................................................................................. 5 Section 7.6 Adding and Removing Documents.................................................................................. 6 8 ARTICLE VIII- PROBATION.......................................................................................................................... 6 Section 8.1 Probationary Period........................................................................................................ 6 Section 8.2 Promotional Probationary Period................................................................................... 6 CAP081414 Page 106 9 ARTICLE IX - SENIORITY................................................................................................................................ 7 Section9.1 Definition......................................................................................................................... 7 Section9.2 Seniority List.................................................................................................................... 7 Section 9.3 Application of Seniority................................................................................................... 7 10 ARTICLE X- LAYOFF AND RECALL.............................................................................................................. 8 Section10.1 Layoff............................................................................................................................ 8 Section10.2 Notice............................................................................................................................ 8 Section 10.3 Eligibility for Layoff Status............................................................................................. 8 Section 10.4 Layoff Procedure........................................................................................................... 8 Section 10.5 Bumping Procedure...................................................................................................... 6 Section 10.6 Qualifications, Knowledge, Skills and Abilities.............................................................. 9 Section10.7 Change in Pay................................................................................................................ 9 Section 10.8 Recall from Layoff......................................................................................................... 9 11 ARTICLE XI - HOURS OF WORK AND OVERTIME........................................................................................ 10 Section11.1 Work Week.................................................................................................................... 10 Section11.2 Overtime...................................................................................................................... 10 Section11.3 Flex Time....................................................................................................................... 10 Section 11.4 Compensatory Time..................................................................................................... 11 Section11.5 Rest Periods................................................................................................................... 11 Section11.6 Meal Periods................................................................................................................ 11 Section11.7 Call Back....................................................................................................................... 12 Section11.8 On -Call Status............................................................................................................... 12 12 ARTICLE XII - COMPENSATION................................................................................................................... 14 Section12.1 Salary Schedule............................................................................................................ 14 Section12.2 Pay Periods................................................................................................................... 14 Section12.3 Steps.............................................................................................................................. 14 Section 12.4 Changes in Position and/or Grade................................................................................ 14 Section 12.5 Acting In Capacity or Interim Status Pay....................................................................... 15 Section 12.6 Certification and Licensing Fees.................................................................................... 15 Section 12.7 Certification Pay............................................................................................................ 16 Section 12.8 Certificate Compensation............................................................................................. 17 Section 12.9 Other Certifications and Certificates............................................................................. 17 Section 12.10 Certification and Certificate Pay Limitations.............................................................. 17 Section 12.11 Bilingual/Sign Language Pay....................................................................................... 17 Section 12.12 Education Incentive..................................................................................................... 17 Section 12.13 Maximum Additional Pay............................................................................................ 18 Section 12.14 PERS Contribution....................................................................................................... 18 Section 12.15 Deferred Compensation.............................................................................................. 18 13 ARTICLE XIII - CLOTHING............................................................................................................................ 18 Section13.1 Clothing........................................................................................................................ 18 Section13.2 Safety Clothing.............................................................................................................. 18 Section 13.3 Clothing Allowance....................................................................................................... 19 Section13.4 Boots............................................................................................................................ 19 Section 13.5 Boot Eligibility............................................................................................................... 19 CAPO81414 Page 107 14 ARTICLE XIV - EXPENSE REIM BURS EM ENT................................................................................................. 19 Section 14.1 Educational Reimbursement......................................................................................... 19 Section 14.2 Travel Expenses............................................................................................................ 19 Section14.3 Meals............................................................................................................................. 20 Section14.4 Lodging.......................................................................................................................... 20 Section 14.5 Use of Purchasing Card................................................................................................. 20 15 ARTICLE XV - VACATION............................................................................................................................ 20 Section15.1 Accrual........................................................................................................................... 20 Section15.2 Selection....................................................................................................................... 21 Section 15.3 Accrual Limitations....................................................................................................... 21 Section15.4 Termination.................................................................................................................. 21 Section15.5 Sell Back........................................................................................................................ 21 16 ARTICLE XVI - HOLIDAYS............................................................................................................................ 22 Section16.1 Holidays......................................................................................................................... 22 Section16.2 Observed...................................................................................................................... 22 Section 16.3 Floating Holiday............................................................................................................ 22 17 ARTICLE XVII - SICK LEAVE......................................................................................................................... 23 Section17.1 Accrual........................................................................................................................... 23 Section17.2 Utilization..................................................................................................................... 23 Section17.3 Notification................................................................................................................... 23 Section 17.4 Sick Leave Compensation............................................................................................. 23 Section 17.5 Leave Without Pay/Layoff............................................................................................ 23 Section 17.6 Immediate Family.......................................................................................................... 23 Section 17.7 Integration of Paid Sick Leave With Workers Compensation ...................................... 23 Section17.8 Retirement................................................................................................................... 24 18 ARTICLE XVIII - LEAVE OF ABSENCE WITH PAY.......................................................................................... 24 Section 18.1 Bereavement Leave....................................................................................................... 24 Section 18.2 Funeral Leave............................................................................................................... 24 Section 18.3 Civic Responsibility........................................................................................................ 24 Section18.4 Military Leave............................................................................................................... 25 Section 18.5 Conferences/Meetings................................................................................................. 25 Section 18.6 Leave Accrual while on Paid Leave............................................................................... 25 19 ARTICLE XIX - LEAVE OF ABSENCE WITHOUT PAY..................................................................................... 25 Section 19.1 Family Medical Leave.................................................................................................... 25 Section19.2 Military Leave................................................................................................................ 25 Section 19.3 Other Leave Without Pay............................................................................................. 26 Section 19.4 Leave Accrual while on Leave Without Pay.................................................................. 26 20 ARTICLE XX- INSURANCE COVERAGE....................................................................................................... 26 Section 20.1 Medical, Dental and Vision Insurance........................................................................... 26 Section 20.2 Health Insurance Eligibility............................................................................................ 26 Section 20.3 Medical, Dental and Vision Insurance Premiums......................................................... 26 Section20.4 Section 125.................................................................................................................... 26 CAPO81414 Page 108 Section 20.5 Health Reimbursement Arrangement........................................................................... 27 Section 20.6 Long Term Disability Insurance.................................................................................... 27 Section 20.7 Life Insurance............................................................................................................... 27 (numbers will change due to removal of Article 22) 30 22 ARTICLE XXII — DRUG AND ALCOHOL POLICY............................................................................................. 27 Section 22.1 Drug and Alcohol Policy................................................................................................ 27 23 ARTICLE X%III - OUTSIDE EMPLOYMENT.................................................................................................... 27 Section 23.1 Outside Employment.................................................................................................... 27 24 ARTICLE XXIV - DISCIPLINE AND DISCHARGE............................................................................................ 28 Section24.1 Discipline....................................................................................................................... 28 Section24.2 Imposition.................................................................................................................... 28 Section 24.3 Probationary Period..................................................................................................... 28 Section 24.4 Grieving Discipline........................................................................................................ 28 Section 24.5 Union Representation.................................................................................................. 28 25 ARTICLE XXV - GRIEVANCE PROCEDURE................................................................................................... 28 Section25.1 Definition...................................................................................................................... 28 Section 25.2 Informal Resolution...................................................................................................... 28 Section 25.3 Grievance Procedure.................................................................................................... 28 Section25.4 Expenses...................................................................................................................... 29 Section25.5 Time Limits................................................................................................................... 30 Section25.6 Grievance File............................................................................................................... 30 26 ARTICLE XXVI - UNPROTECTED STRIKE ACTIVITY AND LOCKOUT............................................................... 30 Section26.1 Lockout......................................................................................................................... 30 Section26.2 Strike............................................................................................................................ 30 Section 26.3 Union Responsibility..................................................................................................... 30 Section26.4 Discipline...................................................................................................................... 30 Section 26.5 Wages and Benefits During Work Interruption............................................................ 30 27 ARTICLE X%VII - SAVINGS CLAUSE............................................................................................................. 31 Section27.1 Savings Clause.............................................................................................................. 31 28 ARTICLE X%VIII - DURATION...................................................................................................................... 31 Section28.1 Duration....................................................................................................................... 31 29 ARTICLE XXIX- EXECUTION/SIGNATURES................................................................................................. 32 APPENDIX A - PAY SCHEDULE....................................................................................................................... 33 CAPO81414 Page 109 AGREEMENT BETWEEN CITY OF CENTRAL POINT, OREGON AND TEAMSTERS LOCAL UNION N0. 223 PREAMBLE This Agreement between the City of Central Point, Oregon, hereinafter called the "City," and Teamsters Local Union No. 223, International Brotherhood of Teamsters, Portland, Oregon, hereinafter called the "Union," is made and entered into for the purpose of fixing the wage scale, schedule of hours and conditions of employment affecting members of the bargaining unit. The purpose of this Agreement is to set forth the full and complete Agreement between the parties on matters relating to employment relations. ARTICLE I - RECOGNITION 1.1 Recognition. The City recognizes the Union as the sole and exclusive bargaining agent for all employees in the bargaining unit for the purpose of establishing hours, wages and conditions of employment which constitute "employment relations" as defined by Oregon Law. For the purpose of this Agreement, an "employee" shall be any employee employed in a position in the bargaining unit established by the Oregon Employment Relations Board and referenced in appendix A of this Agreement. 1.2 Exclusions. Managerial, Supervisory, Confdential, FLSA exempt, and Temporary and Part -Time Without Benefits employees shall specifically be excluded from the bargaining unit. For the purpose of this Agreement, a temporary employee shall be defined as an employee hired for a work assignment lasting less than 180 calendar days in any 12 month period or for a work assignment for which the specific purpose is to fill a temporary vacancy created by a regular bargaining unit employee who is on approved leave as provided for in this Agreement. A "part-time without benefits' employee shall be defined as an employee scheduled to work less than 80 hours in a calendar month, regardless of the duration of the assignment. 1.3 New Classification. If a new classification is added to the bargaining unit, the Union shall be provided with the written job description thereof and the City's proposed rate of pay. That rate shall become permanent unless the Union files a written notice of its desire to negotiate the permanent rate within 10 calendar days from the date it receives its notification of the classification. If a request for negotiations is filed by the Union, the parties shall begin negotiations within 15 calendar days. The new classification/position shall, by reference, be incorporated into this Agreement. CAP081414 Page 110 ARTICLE II - MANAGEMENT RIGHTS 2.1 Management Rights. The City retains all the customary, usual and exclusive rights, decision- making prerogatives, functions and authority connected with or in any way incident to its responsibility to manage the affairs of the City or any part of it. The rights of employees in the bargaining unit and the Union are limited to those specifically set forth in the Agreement; and the City retains all prerogatives, functions and rights not specifically limited by the terms of this Agreement. The City shall have no obligation to bargain with the Union with respect to any such subject or the exercise of its discretion and decision-making with regard thereto any subjects covered by the Terms of this Agreement and closed to further bargaining for the terms hereof, and any subject matter which was or might have been raised in the course of collective bargaining. The exercise of the management prerogative, function or right which is not specifically modified by this Agreement is not subject to the grievance procedure or to bargaining during the term of this Agreement. Without limitation, but by way of illustration, the exclusive prerogatives, functions and rights of the City shall include the following: a. To direct and supervise all operations, functions and policies of the Department and the operations, functions and policies of the remainder of the City as they may affect employees in the bargaining unit. b. To close or liquidate an office, branch, department, operation or facilities, or combine facilities, or to relocate, reorganize, or combine the work of divisions, offices, branches, departments, operations, orfacilities for budgetary or other reasons. c. To determine the need for and method of a reduction or an increase in the workforce and the implementation of any decision with regard thereto. d. To establish, revise and implement standards for hiring, classification, promotion, quality of work, evaluation, safety, materials, equipment, uniforms, appearance, methods and procedures. It is jointly recognized that the City must retain broad authority to fulfill and implement its responsibilities and may do so by work rule, existing orfuture, oral or written. e. To implement new and to revise or discard, wholly or in part, old methods, procedures, materials, equipment, facilities and standards. f. To assign and distribute work. g. To assign shifts, workdays, hours of work, overtime and work locations. h. To designate and to assign all work duties. 1. To introduce new and revise existing duties within the unit. CAP081414 Page 111 j. To determine the need for, and the qualifications of, new employees, transfers and promotions. k. To determine the need for additional educational courses, training programs, on-the-job training, and cross -training and to assign employees to such duties for periods to be determined by the City. ARTICLE III - MAINTENANCE OF STANDARDS 3.1 Maintenance of Standards. All rights, privileges and working conditions enjoyed by members at the time of this Agreement have been codified and included in this Agreement. Any such privileges or working conditions not codified in this Agreement but which constitute employment relations as defined in ORS 243.650 (7), shall remain unchanged and unaffected during the term of this Agreement except that such conditions and/or privileges may be changed with advance notice to the Union. ARTICLE IV - UNION SECURITY 4.1 Checkoff. Any employee who is a member of the Union, or who has applied for membership, shall sign and deliver to the Union, who shall forward to the City, an original assignment authorizing deductions of dues for membership in the Union. Such authorization shall continue in effect from year to year unless revoked or changed in writing. Pursuant to each authorization, the City shall deduct such dues and initiation fees from the first pay check of said employee each month. The amounts deducted shall be transmitted within 10 days to the Union. 4.2 Fair Share. Employees who are not members of the Union shall make payments in lieu of dues to the Union. Such payments shall be in the same amounts as provided for regular Union dues. This section shall be referred to as the "Fair Share" Agreement and the City shall deduct from the first pay check of each employee, each month, the payments for regular dues or payments in lieu of dues and shall remit the same to the Union within 10 days after the deduction is made. 4.3 Religious Objection. Any employee who is a member of a church or a religious body having bona fide religious tenets or teachings which prohibit association with a labor organization or the payment of dues or payment in lieu of dues to a labor organization, shall pay an amount of money equivalent to regular Union dues to a non -religious charity or other charitable organization mutually agreed upon by the affected employee and the Union. The City shall deduct from the first pay check of each employee, each month, the payments to such charitable organization and remit the same to the charitable organization within 10 days after the deduction is made. The City shall supply proof to the Union, each month that this has been done. 4.4 Hold Harmless. The Union agrees to indemnify and hold harmless the City and its agents for any loss or damage arising from the deductions in 4.1, 4.2, and 4.3. No claims shall be filed by employees or the Union for such deductions made or not made. CAP081414 Page 112 4.5 New Hires. The City agrees to provide the Union written notification of new bargaining unit members within one calendar month of their date of employment. Such written notice shall be sent to the official Union address that has been provided to the City's Human Resources Director. Such written notice shall contain the employee's name, job title, date of hire, and the mailing address provided by the employee. 4.6 Bulletin Board. The City agrees to allow suitable wall space at a mutually agreed upon place in City Hall and Public Works Shops Building not to exceed 2'X 3' each, for a bulletin board, to be used by the Union for the posting of notices and bulletins relating to the Union. The Union shall limit its posting of Union notices. Such notices shall bear the signature of the authorizing Union official. The bulletin board shall be used only for the following Union notices and bulletins: a. Recreation and social affairs of the Union b. Union meetings c. Union elections d. Reports e. Rulings or policies of the Union f. Non -derogatory communications from the Union to the bargaining unit Any notices posted outside these guidelines may be ordered removed by the City. 4.7 Right of Access. Upon request, a Union representative (Teamsters Business Agent) may be granted access to non -working areas to meet with off-duty members of the bargaining unit. 4.8 City Facilities. The Union will be accorded the use of City facilities for bargaining unit meetings in accordance with City policy for other special interest groups. ARTICLE V- UNION BUSINESS 5.1 Union Business. If the City requests a grievant's representative to meet on a pending grievance while the grievant's representative is on duty, the grievant's representative shall not suffer a reduction in regular compensation thereby, nor be entitled to overtime to compensate for time spent in such meeting. In addition, the City agrees to allow a Union steward time off without payfor the purpose of handling, investigating and processing grievances. A maximum of two hours per month will be allowed. The City's approval will be obtained before taking time off, but that approval will not be unreasonably withheld. 5.2 Union Representatives. The Union shall at all times keep the City informed, in writing, of the names of its current local officers, stewards, and negotiators. Such written notice shall be provided to the Cityand updated as necessary. CAP081414 Page 113 5.3 Collective Bargaining. Collective bargaining between the City an the Union shall be scheduled at mutually agreed upon times generally during normal business hours (M -F 8-5), provided that such times do not unnecessarily interfere with professional duties. Upon advance request, the City will grant time off without loss of pay for not more than three employees to engage in collective bargaining. It is agreed that time spent by Union members in actual bargaining shall not result in a loss of pay, nor shall Union bargaining team members receive any overtime or additional compensation directly from the City if the bargaining meetings are conducted outside of the Union member's regularly scheduled work hours. ARTICLE VI - NON-DISCRIMINATION 6.1 Gender. All references to employees and position titles in this Agreement designate both sexes, and, while every attempt has been made to include generic pronouns or both genders, whenever the male or female gender is used, it shall be construed to include both male and female employees. 6.2 Application of Agreement. The provisions of the Agreement shall be applied to all employees in the bargaining unit without discrimination as to marital status, sex, race, color, creed, national origin, age, religion, orother protected class, or union affiliation or political affiliation. ARTICLE VII - PERSONNEL FILE 7.1 Maintenance of Personnel Files: The City agrees to separately maintain personnel and confidential/medical fles and records in accordance with state and federal laws. The City agrees to maintain confidential medical information in accordance with the Americans With Disabilities Act (ADA) and Health Insurance Portability and Accountability Act (HIPAA) and agrees to maintain any other confidential information as required by any other statute requiring maintenance of confidential information. 7.2 Disclosure of Information: Excluding internal personnel administration, material in an employee's personnel file shall only be disclosed as allowed or required by state and federal law or as authorized by the employee. 7.3 Viewing of Files. Each employee shall have the right, upon request, to review and obtain, at his/her own expense, copies of the contents of his/her personnel file, exclusive of materials received prior to the date of employment with the City. 7.4 Representation: A representative chosen by the employee may, upon the employee's written authorization, review an employee's personnel file and/or accompany the employee in this review. 7.5 Employee Signature and Response. Each employee shall have the opportunity to read any written material of a derogatory nature that is placed in his/her personnel file. Disciplinary notices, CAP081414 Page 114 performance appraisals, orother similar material that, once included in the employee's personnel file, is likely to have an adverse effect on an employee's reputation or employment status shall be acknowledged, signed and dated by the employee within 14 calendar days of the employee receiving the document. All materials addressed in this Section and requiring the employee's signature shall bear a statement stating, in effect, that signing acknowledges receipt of the document but does not necessarily indicate agreement. For 30 calendar days after the employee has signed acknowledging receipt of the documents), the employee reserves the right to include in the file a written response to such material, and this response shall be attached to the material in question and become a part of the employee's file. If an employee refuses to acknowledge the document by signing as instructed, the City shall make a note on the document to the effect that the employee refused to sign and place the document in the personnel file. By refusing to acknowledge receipt of the document, the employee shall waive any right to provide a written response or request the document be removed in the future pursuant to 7.6. 7.6 Adding and Removing Documents. Except as otherwise waived in 7.5, an employee shall have the right to include in their personnel file any material or information considered relevant to that employee's employment with the City. Employees may request that written reprimands over two years old be removed from their file. Such requests must be made in writing to the City Manageror his/her designee, and shall include the specific document(s) the employee is requesting be removed, and the reason(s) why the employee believes the document(s) should be removed. The City Manager shall investigate and respond to such requests. Written reprimands shall not be removed from the employee's personnel file, if less than two full years has not passed since the acknowledgement date on the document, other disciplinary action displaying an ongoing pattern of behavior has been imposed during that period, or the reprimand is for an act of workplace violence, harassment, or discrimination. Any documents removed pursuant to this section shall be retained in a separate file, if necessary, to comply with records retention requirements under ORS 166-200-0090. ARTICLE VIII — PROBATION 8.1 Probationary Period. Every new employee hired into the bargaining unit shall serve a probationary period of 12 months of employment. The Union recognizes the right of the City to terminate probationary employees for any reason. 8.2 Promotional Probationary Period. Employees promoted to a higher classification shall serve a promotional probationary period of six continuous months. The Union recognizes the right of the City to demote an employee on promotional probationary status to his/her previous position. The employee will be allowed to voluntarily return to their previous position during the first three months of the promotional probationary period. Demotion of an employee on promotional probationary status shall not be subject to the grievance procedure and such demotion shall not be considered a disciplinary action. An employee demoted during a promotional probationary period shall be placed on the pay scale CAPO81414 Page 115 at the classification and step the employee was at prior to the promotion, except that any length of service increases the employee would have received had they not been promoted shall be granted to the employee on return to their previous position. ARTICLE IX — SENIORITY 9.1 Definition. Only regular, non -probationary employees shall have seniority. Seniority shall be counted from the day of hire, but granted only after completion of the probationary period of 12 months and shall thereafter be established as follows: the employee's length of continuous service in the job classification shall be referred to as "job classification seniority' and continuous service from the last date of hire within the bargaining unit shall be referred to as "bargaining unit seniority." All seniority shall be terminated if the employee: a. Quits b. Is discharged c. Is laid off and fails to respond to written notice as provided in Article 10, Section 8 d. Is laid off for a period of time greater than 18 months or a period of time equal to his/her bargaining unit seniority, whichever is shorter e. Fails to report to work at the termination of a leave of absence f. While on leave of absence accepts employment without permission g. Retires h. Accepts a position outside the bargaining unit, other than during a promotional probationary period as outlined in Section 8.2. 9.2 Seniority List. The City will provide to the Union an updated bargaining unit seniority list each July. 9.3 Application of Seniority. Seniority shall apply in layoff and recall and vacation and other requests for time off. 9.3.1 Layoff and Recall. If employees in the same position are being considered for layoff or recall, seniority within the job classification and bargaining unit shall govern in accordance with Article 10.4 and 10.8. 9.3.2 Vacation and Time Off Bidding. Employees with the most bargaining unit seniority shall have first choice in vacation requests. In the event two employees have the same bargaining unit seniority, a coin flip or other mutually agreed upon method of selecting order shall be used. Seniority shall only be used to determine the order for requesting vacation and shall not supersede department rules regarding requesting vacation or time off. See Article 15.2 Vacation Selection. Employees returning to the bargaining unit following recall from layoff shall have vacation CAP081414 Page 116 selection determined on the basis of total bargaining unit seniority. All vacation and time off requests must be approved in advance. ARTICLE X — LAYOFF AND RECALL 10.1 Layoff. A layoff shall be defined as a reduction in force when a position(s) is eliminated or staffing is reduced and the affected employee(s) cannot be reassigned to a vacant position in the same pay level and same full time equivalency (FTE). 10.2 Notice. Employees who are identified for layoff shall receive 30 calendar days advance written notice or pay in lieu thereof. 10.3 Eligibility for Layoff Status. Only regular employees who have completed their probationary period and have received a layoff notice shall be eligible for layoff status. Probationary employees shall not be eligible for layoff and recall. Layoff and recall status shall be limited to a maximum of 18 months for recall to one's previous position and 12 months for recall to a vacancy in a position other than the employee's previous position. In no case shall layoff and recall status be longer than the employee's bargaining unit seniority time. 10.4 Layoff Procedure. Seniority shall govern in the matters of layoff as follows. a. Written notice as set forth in 10.2 will be given to the least senior employee(s) in the positions) identified for layoff. The notified employee(s) will also be provided with information about which positions are potentially eligiblefor bumping based on seniorityand classification level. L. The notified employee(s) will have 10 calendar days to notify the City, in writing, of their decision to not invoke bumping rights, or to invoke bumping rights and identify which position s/he chooses to bump. If the City determines that the employee is not qualified to bump into the position, the employee may choose a different eligible position, if available, or elect to not bump. c. If the notified employee elects to not invoke his/her bumping rights, or is unable to bump due to lack of qualifications or lack of eligible positions, the employee shall be entitled to receive one additional month of pay, will be eligible for reimbursement of one month of COBRA health insurance premiums paid by the City, and shall be placed on layoff status. 10.5 Bumping Procedure. An employee who invokes bumping rights shall be required to bump the least senior employee of a pay grade equal to or lower than the bumping employee for which the bumping employee is qualified. Bumping rights shall be limited to bumping only the least senior employee in a given pay grade and shall not include the ability to select from other positions for any reason, including pay, preference, or qualifications. An employee who has bumped into another CAP081414 Page 117 position shall retain recall rights to their former position in accordance with 10.8. 10.6 Qualifications Knowledge Skills and Abilities. Qualifications, knowledge, skills and abilities shall include, but are not limited to, an employee's ability to perform the duties of the job, as described in the current position description, to the City's standards and satisfaction, without further training or trial period beyond 30 calendar days. a. Training ora trial period does not include minimal orientation on a job. Experience in a job, job duties obtained through temporary assignment, or performance of a job through previous employment shall not, of itself, indicate that the employee has the qualifications, skills and abilityto perform the work. b. The City shall be the sole judge of an employee's qualifications to perform the required work except that any determination shall not be arbitrary or discriminatory. 10.7. Change in Pay. An employee who bumps into a position in the same pay grade will remain at the same step and pay level. Employees bumping into lower pay level positions will be placed on the pay scale of the lower grade and their pay will be adjusted to the amount of the step in the new grade closest to, but not more than, their previous pay and the change shall be effective the first day of the first full pay period following the job change. An employee who had not attained step F in their former position shall not be eligible for step F in the new position until such time as the employee would have been eligible in the prior position. 10.8 Recall from Layoff. Employee(s) on layoff status pursuant to this Agreement shall have recall rights to a vacancy in their former position for up to 18 months. Notice of recall shall be made by certified mail sent to the last mailing address provided to the City by the employee. The following restrictions and conditions shall apply to recall: If the laid off employee's former position becomes vacant while the employee is on layoff status, a recall notice will be sent to the laid off employee. In the event more than one employee has been laid off from the same position, recall shall be in order of seniority, with the employee with the most bargaining unit seniority receiving the first recall notice. For the purpose of this section, an employee who has bumped into another position shall be considered to have recall rights to their former position. a. An employee may be required to demonstrate that they still possess the qualifications, knowledge, skill and ability required for the position prior to reinstatement to their former position if more than 6 months has passed since they were laid off. b. If an employee rejects recall to their former position or fails to report to work within 14 calendar days of such notice, the employee will forfeit all seniority, layoff status, and further recall rights. CAP081414 Page 118 For 12 months from the date of layoff, employees who are on layoff status and not working for the City in another capacity shall be notified of any bargaining unit vacancy that arises in a position in a grade equal to or lower than their previous position. The laid off employee will be given priority consideration for the position with the following conditions and restrictions: a. A notified employee on layoff status wishing to be considered for such vacancy must notify the City, in writing, within 10 calendar days of being notified of such vacancy. b. The employee must be able to demonstrate that they possess the necessary qualifications, knowledge, skills and abilities to satisfactorily perform the work, as determined by the City. c. Preference for consideration will be given in order of bargaining unit seniority at the time of layoff. k1III 114 4 i:10 7 [oil] 3Ll i M1 1Ul 3 110110 I ULPI i 311 "Al: 11.1 Work Week. The basic work week shall be from 12:01 A.M. Sunday through midnight Saturday and shall consist of 40 hours during the seven day period. The regular work week shall consist of eight consecutive hours for five consecutive days or 10 consecutive hours for four consecutive days or any configuration that falls within the defined basic work week that is approved by the department director. Time spent outside of scheduled work hours checking and/or responding to emails, text messages or phone messages shall not be considered compensable work time unless the employee is specifically directed by a supervisor to perform such duties outside of scheduled work hours or where otherwise addressed in the Agreement. 11.2 Overtime. Required overtime shall be paid at 1'/: times the regular hourly rate for all hours worked in excess of 40 hours during the basic work week or in excess of a regular scheduled shift (i.e., more than 8 or 10 hours. An employee scheduled in advance to work overtime which is not annexed to his/her regular work shift shall receive a minimum of thirty minutes compensation at the overtime rate. Overtime must be approved in advance. 11.3 Flex Time. With advance notice and approval from the supervisor, a full-time employee may request to flex their regular work schedule on an occasional basis. Time off for personal business may be granted, provided the employee works an equal number of hours during the same workweek to make up for the time off. a. Flex time shall normally not exceed 5 hours per week. b. All flex time hours shall be made up within the same workweek as the time off taken. CAPO81414 Page 119 c. Hours worked by an employee because they have exercised flex time as set forth in this Section shall not be counted as hours worked for the purpose of computing overtime work and no overtime or comp time shall accrue for "make up" hours worked in excess of a regular scheduled shift as set forth in 11.2. d. The time off and make up time must be taken and worked by the employee as scheduled and approved by the supervisor. If an employee has alreadyworked the extra time in anticipation of taking approved time off that is later denied by the supervisor, the employee shall be compensated for any overtime hours actually worked in excess of 40 hours in the workweek in accordance with Section 11.2. e. Failure of an employee to make up time as agreed shall result in a loss of pay for the hours not worked, except that the employee may be allowed to substitute accrued paid vacation or comp time in lieu of a loss of pay. f. Abuse of flextime may result in denial of future requests. g. Flex time requests shall be initiated only by the employee and nothing in this Section shall be used to circumvent the City's obligation to pay overtime in accordance with Section 11.2. 11.4 Compensatory Time. An employee may elect to receive compensatory time (comp -time) in lieu of overtime pay as the form of compensation for any approved overtime worked. Comp -time shall accrue at a rate of 1'/: the overtime hours actually worked with accrual balances reflecting the number of hours available to the employee. Accrued comp -time shall be paid at the regular rate of pay. Compensatory time may be accumulated to a maximum of 80 hours. Any overtime hours worked beyond the 80 hour limit shall be paid at the employee's overtime rate. At the end of the fiscal year, comp -time balances may be paid off, at the City's option, at the employee's straight -time hourly rate. If an employee changes to a higher job classification, the City may, at its option, pay off any comp -time balance at the employee's pay rate prior to changing positions. Comp -time shall be taken off at times mutually agreed upon, subject to the operating needs of the department. 11.5 Rest Periods. A paid rest period of 15 minutes shall be permitted for all employees during each half shift (one break for each four hour segment), in accordance with established City standards, the operating requirements of each employee's duties, and needs of the City. No employee shall be denied the opportunity to take one rest break during each half shift. 11.6 Meal Periods. Employees shall be granted an unpaid meal period of at least 30 minutes, but not more than one hour, during each work shift of more than six consecutive hours. Meal periods shall be regularly and consistently scheduled from day to day and scheduled in the middle of the employee's work shift, or as near thereto as possible. The specific time and duration of the meal period shall be at the discretion of the supervisor, consistent with the operational needs of the City, but with consideration given to employee preference. Employee -requested changes to the duration of meal periods shall not cause the city to incur overtime costs (i.e., if an employee normally has a 60 minute CAP081414 Page 120 lunch but requests to take a 30 minute lunch, they would adjust their workday by 30 minutes rather than incurring 30 minutes of overtime). 11.7 Call Back. If an employee is unexpectedly called back to work more than one hour after the end or more than one hour before the beginning of a day's work shift, the employee shall receive a minimum of 2 hours of pay at the overtime rate. This section does not apply to scheduled overtime, time annexed to the beginning or end of the work shift, or an employee being compensated for on-call status (an on-call employee responding to a call out shall be compensated under 11.8. but shall not be entitled to the 2 hour minimum call back provision). If an employee is called during non -work hours to provide assistance or information that can be handled without physically responding (i.e., can be handled over the phone or via remote computer access), the employee shall be compensated at the overtime rate for the actual time spent responding, but shall receive a minimum of 30 minutes of pay at the overtime rate, provided the call is for legitimate business purposes. 11.8 On -Call Status. Public Works employees who meet the established criteria posted by the Public Works Director shall be placed on an on-call rotation schedule. Each employee on the on-call rotation schedule shall be designated as on on-call status for a period of one week beginning at 8:00 a.m. on Tuesday. Each eligible employee shall serve one week on-call until each eligible employee has served one week and then the rotation will begin over again. The on-call employee shall only be eligible for on-call compensation for times other than during the regular work day. 11.8.1 Pay for on-call. Such on-call time shall be compensated as follows: $300 for one full week that does not include any holidays. Daily rates of compensation shall be $75 for each Saturday and Sunday and $30 for each day Monday through Friday. b. An additional $120 of pay for any scheduled holiday listed in Section 16.1 and observed during the regular work week except (k), day before Christmas day, December 24, and (1) floating holidays. 11.8.2 Comp -time in lieu of pay. If the employee scheduled to be on-call elects to receive comp - time in lieu of on-call pay, comp time balances shall be adjusted as follows: a. 18 hours of comp -time shall be added to the employee's comp -time balance for each full week that does not include any holidays. Daily rates of comp -time compensation shall be 4.5 hours for each Saturday and Sunday and 1.8 hours for each day Monday through Friday. b. An additional 6 hours of comp -time shall be added to the employee's comp -time balance for a week of on-call rotation that includes a scheduled holiday listed in Section 16.1 and observed during the regular work week, except (k), day before Christmas, December 24, and (1) floating holidays. CAP081414 Page 121 An employee electing to receive comp -time for on call compensation must elect to do so for the entire week of on-call rotation. The employee will not be allowed to take part of the compensation in pay and part as comp -time. 11.8.3 Substitutions. In the event an employee scheduled for on-call is unable to complete a full week of on-call rotation due to a) illness, b) injury, or c) an unforeseen scheduling conflict, anothereligible employee may be substituted forthe scheduled employee. The scheduled employee and his/her substitute shall be compensated atthe daily rates(s) specified above for the actual dates of on-call service. Substitutions must be approved by the supervisor or manager in orderto be compensated in accordance with this section. Denial of a requestfor substitutions due to scheduling conflicts under this section shall be atthe discretion of the supervisor or manager. Denial of a request for substitution for scheduling conflicts shall not be subject to the grievance procedure. All substitutes must be approved foron-call rotation atthe time of the substitution. Employees who are required to respond to a call out during their on-call rotation shall be compensated in accordance with Article 11.1, 11.2, and 11.3, Hours of Work and Overtime in addition to the on-call pay in 11.8 .1 and 11.8.2, except that 15 minutes of response time shall be added to the total time worked as defined below. Actual time worked shall be counted from the time of arrival at the corporation yard and end when the job is completed, including filing necessary paperwork and locking up the facilities. Employees responding to calls shall work in the most expedient manner possible to minimize the total call out time while maintaining an acceptable level of service. The on-call employee will be required to take a city -owned electronic device (such as a laptop or iPad) equipped to respond to SCADA alarms. In the event of a SCADA alarm, the on-call employee will first respond to the alarm using the electronic device (as opposed to responding to the city facilities). If the alarm does not require a response to city facilities, the employee will be compensated for the time spent responding to the alarm electronically, except the minimum compensation time shall be 30 minutes. Personal use of the city -owned electronic device(s) shall be strictly prohibited. All Public Works employees who are eligible for on-call rotation status shall receive, sign, and agree to abide by on-call restrictions and expectations. Employees failing to adhere to restrictions and expectations shall be subject to disciplinary action and may be removed from or suspended from the on-call rotation for a period of time to be determined by the circumstances of the violation. An employee on restricted/light duty shall not be eligible for on-call rotation until such time as the employee has submitted a full release with no restrictions. CAPO81414 Page 122 ARTICLE XI I —COMPENSATION 12.1 Pay Schedule. Appendix A, attached hereto, and by this reference incorporated into and made part of this Agreement, shall become the effective pay schedule(s) effective July 1, 2014. 12.2 Pay Periods. Employees shall be paid on the regularly established pay dates each month. Pay day shall be the last working day prior to the established pay date when those days fall on a weekend or holiday. Any change to currently established pay dates shall require one year's written notice to the union and subsequent notification to bargaining unit members. 12.3 Steps. The letters A, B, C, D, E, F denote the steps in the pay range. The entrance step shall be A, except by special approval of the City. Advancement to the next Step shall be made upon successful completion of the 12 month probationary period. Thereafter, eligibility for advancement to steps B through F shall require one full year of service in the lower step of the range. All step increases shall be made on the basis of a recommendation and written authorization of the Department Head. 12.4 Changes in Position and/or Grade. When an employee's job classification changes, resulting in a move to a higher or lower grade, changes in pay shall be as follows: 12.4.1 Change to a Higher Grade: When an employee moves to a job classification in a higher grade, the employee shall be placed in the new grade at the step closest to, but not less than the employee's previous step amount. If this results in a move that is less than 3% more than the employee's previous step amount, the employee shall be moved one additional step. The employee's movement on the pay schedule steps shall be adjusted to reflect the date of any such change (for example, if an employee had been at Step C of Grade 4 then changed to Step B of Grade 5, they would move to Step C of Grade 5 twelve months later. 12.4.2 Change to a Lower Grade: a. Change due to employer -driven reasons: When an employee's job classification changes to a lower grade due to an employer -driven reason such as reorganization or restructuring of the position, the employee shall be placed in the new grade at the step closest to, but not more than, the employee's previous step's amount, and "frozen" at their current pay amount until such time as the pay scale "catches up to" the "frozen" pay rate. The City may conduct a salary study for any position which has had its pay frozen for two years, after which the employee's pay rate shall be adjusted to the rate reflected in the salary study. b. Change due to employee -driven or -related reason: When an employee's job classification changes to a lower grade due to an employee -driven or employee -related reason such as a disciplinary demotion or restructuring of a job in conjunction with performance management efforts, a job transfer based on performance or discipline or at the request of the employee, or demotion from a promotion during the promotional probationary period, the employee shall be placed in the new grade at the step closest to, but not more than, the employee's previous step's CAP081414 Page 123 amount and the pay shall be adjusted to the lower rate on the first day of the first full pay period following the demotion. An employee who has not been granted Step F shall not be eligible for Step F as a result of a change in job classification until such time as the employee has served at least one full year at Step E of the new range, except by special approval. 12.5 Acting in Capacity or Interim Status Pay. When, at the express directive of the Department Head or his/her authorized designee, an employee serves in the capacity of an employee in a higher classification on a short-term basis, the employee shall be deemed as "Acting in Capacity" and paid as follows 12.5.1 Acting in Capacity. When a bargaining unit employee fully takes on the duties of another higher level bargaining unit employee, in place of their own job duties, for a period of one full day or more, that employee shall be compensated for any full day(s) fully served in the interim position at the pay grade of the interim position, placed at the lowest step in that grade that is not less than 5% more than the employee's current grade and step. 12.5.2 Interim Non -Bargaining Unit Position. When a bargaining unit employee takes on significant additional duties in the absence of the Department Head or other management position for a period of more than one full day, that employee shall be compensated with a 10% percent pay increase for the day(s) they performed the additional duties. 12.5.3 Exceptions and Limitations. This Section shall not apply to employees who merely absorb incidental duties of another employee. The City reserves the right to make interim and acting in capacity assignments in accordance with Article 2, Management Rights. Interim and acting in capacity assignment decisions shall not be subject to the grievance procedure. 12.6 Certification and Licensing Fees. The City will pay for job-related employee certification and licensing fees that are required for the position after the date of hire, except when attainment of such certifications or licenses was specified as a condition of employment in the job description at hire. The City will pay for recertification and license renewal fees for required, job-related certifications and licenses. The City may, at its option, pay certification and/or licensing fees, and recertification and/or license renewal fees that are job-related but are not required for the position, with prior written approval of the Department Head. The City will pay travel expenses associated with approved certification and licensing, or recertification or license renewal, including required continuing education units (CEU), testing, etc. However, all such expenses must be approved, in advance, and may be limited to the most cost effective and prudent option. For example, if CEUs are available via on-line delivery, a request to travel to out of town training may be denied, or if training is offered locally at a later date, out of town training on a more convenient date may be denied. CAP081414 Page 124 Fees and travel expenses shall normally be paid by the City only once. If the City pays fees or travel expenses for an employee pursuant to this section and the employee fails to attend the training for reasons other than reasons beyond the employee's control, or fails to successfully complete the course or pass an exam, the City may deny a request to pay such fees or expenses for the employee to re -take a course or exam. For employees who work in a position for which a commercial driver's license (CDL) is required or preferred, the City shall reimburse the difference between the cost of obtaining/maintaining a class A or B CDL and a class C driver's license. The city shall pay the cost of required medical and/or drug tests required to obtain/maintain the CDL, except such costs shall be limited to not more than one medical exam and one drug test per year. This limit applies to medical certification/testing for CDL application or renewal. The cost of drug testing as part of the City's DOT random drug testing program will be paid by the City and is not limited by this section. 12.7 Certification Pay. Bargaining unit employees shall be eligible for additional compensation, as set forth in this Section, for possession of certain job-related certifications or licenses beyond that which have been established as required for the position and/or have been taken into consideration in determining the pay level of the position. Eligibility for certification pay shall be dependent upon maintaining the certification. In the event a certification expires the employee shall forfeit the certification pay until proof of re -certification is provided. It is the employee's responsibility to provide appropriate documentation of certification and recertification to Human Resources. Such documentation shall indicate the name of the certification, the granting authority, the date awarded and the expiration date. Certification pay shall commence on the first day of the first full pay period following receipt of documentation by Human Resources, regardless of the date the certification was awarded. In the event a certification expires the employee shall forfeit the certification pay until such certification or renewal is provided. If proof of re- certification is provided following a lapse in time, the incentive shall resume on the first day of the next full pay period after receipt of re -certification proof is received in Human Resources. 12.7.1 Qualifying Certifications. In orderfora certification to qualify underthis section, it must: a. Be awarded by a third -party, standard-setting organization (as opposed to an educational or training program), b. Result from an assessment process, c. Signify competency/mastery of a set of standards, usually by application or exam (standards are set through a defensible, industry -wide process such as job analysis/role delineation that results in an outline of required knowledge and skills), CAP081414 Page 125 d. Have on-going requirements in order to maintain certification (holder must demonstrate s/he continues to meet requirements and documentation must specify the certification period and expiration date), and e. Provide a meaningful cost savings benefit to the City resulting from the ability to provide additional or improved services in-house that would otherwise have to be contracted out. Commercial Bldg Inspector $200 Flood Plain Manager $100 Plumbing Inspector $100 ISA Arborist $100 Electrical Inspector $100 Municipal Arborist $150 Water Distribution Level 1 $45 Public Pesticide Applicator License $75 Water Distribution Level $ 75 ODOT General Inspector $ 75 Water Distribution Level $125 Cross Connection Specialist $ 45 Water Distribution Level $175 Playground Safety Inspector $ 75 12.8 Certificate Compensation. Upon completion of certain job-related certificates that do not meet the criteria of certifications under 12.7, but are determined to be of value to the city, a one-time payment shall be made to the employee in the form of additional compensation. This section shall be effective upon ratification of this agreement. Notwithstanding, employees who are currently receiving the additional monthly certificate pay shall continue to receive said pay at the same amount monthly and not be eligible for the one-time payment for an existing certificate or additional level of the existing certificate. ODOT Road Scholar (per level) one-time payment of $250 upon receipt of certificate Microsoft Office User Specialist one-time payment of $100 upon receipt of certificate 12.9 Other Certifications and Certificates. Only the certifications and Certificates listed in this Section shall qualify for additional pay. If an employee believes that a certification or certificate not included in this Section should qualify for additional pay, the employee shall submit a properly completed "Request for Consideration of Certification Pay' form to Human Resources. The decision to allow or disallow the certification or certificate and the amount of incentive pay, if any, assigned shall be final unless the Union files a written notice of its desire to negotiate the decision and/or rate within 10 calendar days from the date the employee receives notification of the decision. If a request for negotiations is filed by the Union, the parties shall begin negotiations within 15 calendar days. The results shall, by reference, be incorporated into this Agreement. 12.10 Certification and Certificate Pay Limitations. Certification or certificate pay shall not pyramid for possession of different levels or titles of the same or similar types of certifications (for example, if an employee has Water Distribution certifications in levels 1 and 2, they will only receive the certification pay for level 2; if an employee has both ISA and municipal arborist certification, they will only receive certification pay forthe municipal arborist). CAP081414 Page 126 12.11 Bilingual/Sign Language Pay. Employees who are determined to be fluent in Spanish or competent in sign language, as certified by an instructor approved by the City, shall receive an additional $150 per month added to the base pay. Employees qualifying for bilingual/sign language pay must provide certification to Human Resources annually, in writing, in order to continue receiving the incentive. Failure to provide written certification prior to the expiration of one year from the date of initial certification shall result in forfeiture of the incentive until such certification is provided. If certification is provided following a lapse in time, the incentive shall resume on the next paycheck after receipt of certification, provided such certification is received prior to the last working day of the pay period prior to the next pay date. The employee shall bear the cost of any such certification. 12.12 Educational Incentive. Bargaining unit employees shall receive additional compensation added to the base pay as set forth below for possession of college degree/certificate(s) in excess of the level which has been established as the minimum requirement for their position. The degree/certificate must be earned from a regionally accredited educational institution and an unopened official transcript verifying the degree/certificate must be provided, at the employee's expense, to HR. Degree pay shall commence on the first day of the first full pay period following receipt of the official transcript in Human Resources, regardless of when the degree is conferred. Only one degree/certificate at any one level shall be compensated, regardless of the number of degrees/certificates an employ may actually have (i.e., possession of both a bachelor of arts in geography and a bachelor of science in math shall be considered having a degree at the bachelor's degree level), and degrees/certificates shall not pyramid (i.e., an employee with both an Associate's degree and a Bachelor's degree, shall only be compensated for the Bachelor's degree). 1 -year certificate $ 50.00 per month Bachelor's degree $200.00 per month Associate's degree $100.00 per month Master's degree $300.00 per month If the city has reimbursed an employee under city policy or a collective bargaining agreement for tuition expenses for coursework used to obtain a college degree/certificate, commencement of any education incentive pay under this Section shall be delayed until such time as the aggregate monthly incentive amount forfeited equals at least 75% of the amount of tuition reimbursement the employee received in the previous 12 months. 12.13 Maximum Additional Pay. The maximum additional compensation any individual employee shall be eligible to receive in the form of any combination of incentive, including education, bilingual incentive and certification pay shall be $400 per month. 12.14 PERS Contribution. The City will continue to participate in the Oregon Public Employees Retirement System (PERS) or its successor as determined by the State of Oregon for the life of this Agreement. The employee's 6% contribution shall be paid by the City. If the employee's contribution increases during the life of this Agreement, the parties agree to reopen this Section of the Agreement and bargain the change. CAP081414 Page 127 12.15 Deferred Compensation. Employees shall be allowed to participate, through payroll deductions, in the deferred compensation program offered through the City. ARTICLE XIII —CLOTHING 13.1 Clow. All employees are required to dress appropriately for the work assignment. The City may set dress standards and expectations, provided such standards and expectations are work-related and not discriminatory. Each employee is responsible for providing and maintaining their own clothing, except as set forth in the Agreement. 13.2 Safety Clothing. Employees who work in positions that subject them to hazardous outdoor working conditions (parks and public works maintenance crews) shall be provided shirts and jackets that meet traffic safety specifications. Employees will be responsible for cleaning items that can be laundered using a household washer and dryer. 13.3 Clothing Allowance. Employees who work in positions that subject them to excessive dirt or conditions likely to cause excess damage to pants (parks and public works maintenance crews) shall receive an annual clothing allowance to offset the cost of replacing and maintaining these items. The clothing allowance shall be $150 per year paid, as compensation, in equal installments of $75 on the first paycheck in July and January. New employees will receive a prorated amount on their first paycheck. 13.4 Boots. If an employee is required to wear a steel toed safety boot or particular type of shoe or boot as a condition of employment, an appropriate boot or shoe will be provided, maintained, and stored by the City and shall be worn solely for City work purposes. The City shall provide, at no cost to the employee, replacement boots or shoes as necessary, provided the replacement is required because of reasonable wear and tear and not due to negligence or mistreatment, the employee certifies that the boots or shoes were worn solely for City work purposes, and the employee surrenders the worn out boot or shoe to the City. The City shall be the sole determiner of what is the appropriate boot or shoe for the assignment and shall have the right to determine the make, model, price limit and vendor of all boot or shoe purchases. Additionally, boots purchased in accordance with this Article shall be considered required safety wear and employees are required to wearthe boots. The City shall make equipment and supplies to clean and maintain boots available to employees covered under this section equipment and supplies to maintain boots. All boots, equipment and supplies shall be kept on the City's premises during non -work hours. 13.5 Boot Eligibility. Only employees in job classifications that have been determined to require specific footwear for safety or exposure to adverse walking conditions, as determined by the City, shall be eligible for the boots in 13.4. CAP081414 Page 128 ARTICLE XIV- EXPENSE REIMBURSEMENT 14.1 Educational Reimbursement. All bargaining unit employees shall be eligible for education reimbursement under the provisions of the City's personnel policies and procedures. 14.2 Travel Expenses. When an employee is required, or otherwise authorized, to travel outside of Jackson County on City business, reimbursement for, or payment of, expenses incurred shall be determined in accordance with City policy except as follows: a. Prior to traveling outside the City, the employee shall obtain approval for the trip and the mode of travel from the department head. L. Travel on official business outside Jackson County shall normally be via public carrier, rental vehicle, or City -owned vehicle. If an employee requests and is authorized to use a private vehicle for convenience or personal preference when City -provided or approved transportation was available, mileage reimbursement shall be paid at 75% of the current IRS rate. When an employee uses their personal vehicle at the request of the city, mileage reimbursement shall be paid at the current IRS rate. This rate is all inclusive and covers all travel expenses including vehicle, fuel, maintenance, oil and other fluids, tires, storage, insurance and any other vehicle - related expenses. Necessary parking expenses directly related to the business purpose of the trip, as opposed to personal preference or expediency, shall be reimbursed separately, with proper documentation and authorization. 14.3 Meals. Reimbursement for or payment of meals eaten while on official trips shall be limited to the amount of actual and reasonable expense incurred during the performance of official duty as a City employee for the City's benefit. The following rates will be considered maximum amounts for travel expenses unless specifically authorized by the department head: Breakfast $10.00 Lunch $13.00 Dinner $21.00 The total allowable amount for three meals per day will be $44.00. If an employee's approved travel involves more than one meal due to the actual length of the trip, the employee can spend up to the authorized total amounts at their discretion as long as the total expense for the allowable meals does not exceed the aggregate amount allowed for those meals. Meals included in the cost of lodging (i.e., breakfast), or included in the cost of event registration, shall not be compensated for twice. Employees electing to not participate in such included meals shall be personally responsible for any additional meal expenses. Snacks or "coffee breaks' are not considered meals and not covered underthis section. CAP081414 Page 129 14.4 Lodging. Employees traveling in accordance with this Section shall be approved for reasonable actual costs for lodging. 14.5 Use of Purchasing Card. Employees shall use their city -issued purchasing card to pay for approved travel expenses including registration, lodging, air fare, fuel for rental or city -owned vehicles, and authorized meals. Itemized receipts accounting for all purchasing card transactions shall be submitted in a timely manner. The purchasing card is not to be used forfuel for personal vehicles. ARTICLE XV -VACATION 15.1 Accrual. Paid vacation leave shall accrueon the following basis forfull-time employees: Service Time Monthly Accrual Annual Accrual Maximum Accrual 0-5 Years 6% Hours 80 Hours 160 Hours 5-10 Years 10 Hours 120 Hours 240 Hours 10-15Years 13% Hours 160 Hours 320 Hours 15+ Years 16 % Hours 200 Hours 400 Hours 1. Vacation leave shall accrue on a monthly basis based upon the employee's date of hire. 2. New, probationary employees shall not be eligible to use vacation leave until they have completed six full months of employment. If the employee resigns or is terminated during this six month period, no vacation payout will be owed. 3. Vacation leave is available for use on the first day following the end of the pay period for which it was accrued and may not betaken in advance or in anticipation of accrual. 4. Vacation leave shall accrue during any paid leave of absence except when the paid leave being used is from the donated sick leave bank. 5. Part-time bargaining unit employees shall accrue vacation leave in direct proportion to full time equivalency. For example, an employee working half time would accrue vacation at 3% hours per month far 0 to 5 years, 5 hours per month for 5 to 10 years, etc. 6. An employee shall receive a one-time award of 40 hours of vacation added to his/her vacation accrual balance on the anniversary date of twenty years of service. 15.2 Selection. Employees shall have the right to determine vacation times, subject to scheduling required for public service based upon the needs of an efficient operation, the availability of vacation relief, and the City's right to arrange scheduling so that each employee has an opportunity, if s/he chooses, to use at some time during the calendar year the full amount of the vacation credit which s/he could accumulate in 12 months of continuous service. Absent specific operational needs, as long CAPO81414 Page 130 as at least four crew employees in the Public Works Operational division are scheduled to work, vacation requests for other Public Works employees shall be approved. Vacation time shall be selected on the basis of seniority provided, however, that each employee will be permitted to exercise his/her right of seniority only once annually and for a single continuous period of time. Conflicting requests for the same vacation time shall be resolved on the basis of prior scheduling. See Section 9.3.2 for application of seniority for vacation and time off bidding. 15.3 Accrual Limitations. Vacation leave shall accrue in accordance with the table in 15.1. If an employee is about to lose vacation credit because of accrual limitations, and such impending loss is caused solely by the City's insistence that the employee be at work during a scheduled vacation period, the employee may, by notifying his/her supervisor in writing at least 5 calendar days in advance, absent him/herself from work to prevent loss of vacation time. Such action taken by the employee shall not constitute a basis for disciplinary action or loss of pay. In lieu of the employee absenting him/herself from work as provided above, the City may, at its option, pay off the excess vacation time at the employee's regular rate of pay. Such payment shall be made on the next pay date following the pay period in which the employee would have had to absent him/herself from work. No payment shall be made for vacation time lost by an employee because of accrual limitations unless the failure to take vacation is caused solely by the City's insistence that the employee be at work during a scheduled vacation period. 15.4 Termination. Upon termination of employment, an employee shall be paid for unused vacation up to a maximum of 320 hours, except as provided for in 15.1(2). 15.5 Sell Back. Once each fiscal year, an employee may request to sell back to the City up to 40 hours of accrued vacation time in excess of 80 hours provided that the employee has taken or is scheduled to take at least 40 hours of vacation during the fiscal year. This option shall be available only once each fiscal year. Employees choosing to exercise this option must advise the City, in writing, through their department manager. The City shall distribute the funds within 30 days of the request. ARTICLE XVI - HOLIDAYS 16.1 Holme. Full-time employees shall be entitled to eight (8) hours of time off with pay for the following holidays: (a) New Year's Day, January 1 (b) Martin Luther King's Birthday, third Monday in January (c) President's Day, third Monday in February (d) Memorial Day, last Monday in May (e) Independence Day, July 4 (f) Labor Day, first Monday in September (g) Veterans' Day, November 11 (h) Thanksgiving Day, fourth Thursday in November CAP081414 Page 131 (i) Day after Thanksgiving Day (j) Christmas Day, December 25 (k) Day before Christmas, December 24 (1) Two floating holidays Part-time employees covered by this Agreement shall be entitled to time off with pay for the above holidays and shall be compensated in proportion to the number of hours per month they are normally scheduled to work, regardless of whether or not the part-time employee is scheduled to work the holiday, provided the part-time employee is scheduled to work after the holiday. 16.1.1 Eligibility. Full-time employees must have worked or have been on paid leave the last work day before and the first work day following a holiday in order to receive holiday pay. Holidays which occur during vacation or sick leave shall not be charged against such leave. 16.2 Observed. If any holiday falls on a Sunday, the following Monday shall be given as the holiday unless that Monday is already a paid holiday, then the proceeding Friday shall be given as the holiday. If any holiday falls on a Saturday, the preceding Friday shall be given as the holiday unless that Friday is already a paid holiday, then the following Monday shall be given as the holiday. 16.3 Floating Holiday. Floating holidays shall accrue on January 1 and July 1 (eight hours each) of each year for all employees, provided the employee is actively employed on January 1 or July 1. Floating holidays may not be taken in advance or in anticipation of accrual. The holiday must be taken in a full 8 hour block and must be used in the calendar year accrued. Floating holidays shall not be paid upon termination of employment but may be allowed to be taken between the employee's notice of resignation and last day of work at the option of the City. Floating Holiday days off are to be scheduled in advance and approved by department heads, with consideration given to employee requests. Failure to make a timely request for the time off, resulting in denial due to staffing needs and subsequent forfeiture of the floating holiday shall not be subject to the grievance procedure. ARTICLE XVII - SICK LEAVE 17.1 Accrual. Sick leave shall be accrued by each full-time employee at the rate of eight hours for each full calendar month of service completed. Part-time employees covered by this bargaining agreement shall accrue sick leave each month in an amount proportionate (based on hours worked each month) to that which would be accrued under full-time employment. An employee may accrue an unlimited amount of sick leave. 17.2 Utilization. Employees may utilize their allowance of sick leave when unable to perform work duties by reason of illness or injury, serious illness in the immediate family, for necessary personal medical or dental care, exposure to contagious disease under circumstances by which the health of CAP081414 Page 132 fellow employees or members of the public necessarily dealt with would be endangered by attendance of the employee in the opinion of the City, and under the Federal and State Family Medical Leave Acts. Sick leave shall be charged on an hour -for -hour basis in a minimum of quarter hour increments. Sick leave is available for use on the first day following the end of the pay period for which it was accrued and may not be taken in advance or in anticipation of accrual. Abuse of sick leave privilege shall be cause for discipline and/or dismissal. 17.3 Notification. An employee who is unable to report to work because of any of the reasons set forth in Section 2 above shall report the reason for his/her absence to the designated department representative as soon as possible and prior to the time s/he is expected to report to work. Sick leave with pay shall not be allowed unless the employee has complied with the posted reporting procedure or made a reasonable attempt to comply. In absences of three days or more, the City may, at its discretion, require the employee to provide a written statement from a physician certifying that the employee's condition prevented him/her from appearing for work and that the employee is released to return to work without restrictions. The City will establish the procedure for contacting the designated department representative. An employee is required to provide his/her supervisor with sufficient information about his/her absence to allow the supervisor to reasonably determine the need for or applicability to leave underthe federal and/or state Family Medical Leave Acts. 17.4 Sick Leave Compensation. Unused sick leave shall not be compensated for in any way at the time of termination of employment. 17.5 Leave Without Pay/Layoff. Sick leave shall not accrue during any period of leave of absence without pay, while using donated sick leave, or while on layoff status, except as required by state or federal law. However, the returning employee shall have previously accrued sick leave, if any, restored upon return to employment from such approved period of leave. 17.6 Immediate family. Except as otherwise permitted under the city's Family Medical Leave and/or Sick Leave Bank policy, "immediate family member" for the purpose of this Article only shall mean spouse, domestic partner, dependent child, other relative living in the employee's household, or other individual for which the employee has a legitimate and ongoing caretaker relationship. 17.7 Integration of Paid Sick Leave With Workers Compensation. When an injury occurs in the course of employment, the City's obligation to pay under this Sick Leave Article is limited to the difference between any disability payment or time loss payment received under Workers' Compensation Laws and the employee's gross pay. When sick leave is paid in conjunction with worker's compensation or disability, prorated charges will be made against accrued sick leave unless the employee specifically requests otherwise. Public Employees Retirement System (PERS) benefit will be prorated according to the amount of compensation paid directly by the City. 17.8 Retirement. Employees may utilize unused sick leave accrual upon retirement in accordance with benefits provided for in PERS and applicable legislation. CAP081414 Page 133 ARTICLE XVIII -LEAVE OF ABSENCE WITH PAY 18.1 Bereavement Leave. In the event of a death in the employee's immediate family, an employee may be granted bereavement leave with pay not to exceed three calendar days in accordance with City policy. Additional bereavement leave shall be available pursuant to the Oregon Family Leave Act. "Immediate family" for the purpose of the three days of paid leave only shall include spouse or domestic partner; child, or person for whom the employee stood in loco parentis; parent, or person who stood in loco parentis; sibling; grandparent; or grandchild. These definitions shall be construed to include biological, adoptive, foster, step and in-law relationships. The three days of paid leave shall run concurrent with any bereavement leave used under the Oregon Family Leave Act. 18.2 Funeral Leave. When an employee serves as a pallbearer, or in some other way participates in, as opposed to merely attend, a funeral ceremony, the employee may be granted time off with pay, not to exceed four hours, to perform such duty. 18.3 Civic Responsibility. The City appreciates that City employees are occasionally required to perform civic duties that may interfere with their scheduled workday. This Section addresses how the performance of civic responsibilities shall affect the employee's work schedule, pay and use of leaves. 18.3.1 Work -Related Court Appearance. Employees required to testify or appear in court in an official capacity and as a part of their job shall be compensated for such court appearances in accordance with Article XI — Hours of Work and Overtime. 18.3.2 Non Work -Related Court Appearance. When an employee is subpoenaed to testify or appear in court other than in an official capacity and where the employee is not personally involved in the action as the plaintiff, the defendant, the object of the investigation, or for purposes such as providing character testimony for a friend orfamily member, s/he shall not suffer any loss of his/her regular compensation for performance of such duty that takes place during time the employee is scheduled to work for the City; however, the employee shall be required to transfer any compensation except mileage and meal expenses received from any source other than the City for the performance of such duty on work time. Time not worked because of such duty shall not affect vacation or sick leave accrual, nor shall the employee be required to use paid leave for such time. This section shall only apply to civic duties performed during time the employee is actually scheduled to be at work on the day the civic obligation takes place. 18.3.3 Jury Duty. When an employee is called for jury duty s/he shall not suffer any loss of his/her regular compensation for performance of such duty that takes place during time the employee is scheduled to work for the City; however, the employee shall be required to transfer any compensation except mileage and meal expenses received from any source other than the City for the performance of such duty on work time. Time not worked because of such duty shall not affect vacation or sick leave accrual, nor shall the employee be required to use paid leave for such time. This section shall only apply to civic duties performed during time the employee is actually CAP081414 Page 134 scheduled to be at work on the day the civic obligation takes place. 18.3.4 Limitations and Expectations. Under no circumstances shall the City be required to pay overtime or grant comp time for civic duty appearances that are not work-related. In the event an employee serves a partial day of civic duty, the employee shall be required to return to work after being released from court, or arrange for use of paid leave in accordance with department rules to compensate for time away from work that is not spent in court. Exceptions may be allowed in such circumstances as when the court appearance is out of the area or the employee is released from their court responsibilities with less than 45 minutes left in their scheduled workday. It shall be the employee's responsibility to notify his/her supervisor of pending civic responsibilities as soon as the employee has knowledge of such duty. 18.4 Military Leave. Military leave of absence shall be granted in accordance with City policy and state and federal law. 18.5 Conferences/ Meetings. Time spent in attendance at or travel to and from conferences, conventions or other work-related meetings that have been approved in advance by the Department Head shall be considered work time in accordance with state law and City policy. An employee may request additional time off, using accrued paid leave, in conjunction with approved work-related travel; however, approval of such requests shall be handled in accordance with department -established requests for time off. 18.6 Leave Accruals while on Paid Leave. Employees on paid leaves of absence shall accrue leaves in accordance with this Agreement and, where by reference, current City policy. ARTICLE XIX- LEAVE OFABSENCE WITHOUT PAY 19.1 Family Medical Leave. All bargaining unit employees shall be covered by current City policy, as well as state and federal law, regarding Family and Medical Leave. 19.2 Military Leave. Military leaves of absence shall be granted in accordance with City policy and state and federal law. 19.3 Other Leave Without Pay. Notwithstanding the Family and Medical Leave Act (FMLA) and Uniformed Services Employment and Reemployment Rights Act (USERRA), a regular, non -probationary employee may be granted a leave of absence without pay for a period not to exceed one month. Requests for leave of absence without pay shall be in writing, shall be directed to the Department Head, and shall contain justification for approval. Approval of such leave requests shall be at the sole discretion of the Department Head, except that any denial of a request shall not be arbitrary or discriminatory. Not counting any such leave covered under FMLA and USERRA, no employee shall receive more than 31 days leave of absence in any three-year period. CAP081414 Page 135 19.4 Leave Accrual while on Leave Without Pa V. Current City policy regarding benefits accrual during Leaves of Absence Without Pay shall apply to all employees covered by this Agreement. ARTICLE XX- INSURANCE COVERAGE 20.1 Medical, Dental and Vision Insurance. The City shall provide a mutually agreed upon medical, dental and vision insurance package for employees and their dependents. If the parties agree to change plans during the life of this agreement, the parties agree to reopen bargaining forthe limited purpose of negotiating Article XX, Insurance Coverage. 20.2 Health Insurance Eligibility: All bargaining unit employees shall be eligible for insurance coverage pursuant to the insurance carrier's eligibility requirements. It is understood that "cashing out" accrued leave time (vacation, and compensatory time) does not constitute hours worked or compensated hours forthe purpose of determining insurance eligibility. 20.3 Medical, Dental, and Vision Insurance Premiums. 20.3.1 Bargaining Unit members employed prior to July 1 2014: For employees who were hired and serving in a bargaining unit position on or before June 30, 2014, the City shall pay 90% of the cost of the employee's monthly health insurance premiums with the employee paying the remaining 10% through payroll deduction. 20.3.2 Bargaining Unit members employed July 1, 2014 or later: For employees who were hired or placed in a bargaining unit position on or after July 1, 2014, the employee shall pay 20% of the monthly cost of the employee's health insurance premium through payroll deduction, and the employershall pay 80%, to a maximum of $1,150 per month. If the employer's 80% exceeds $1,150 per month, the City and employee shall evenly split the difference. 20.3.3 Payment of Premiums. All health insurance premiums paid by the City on behalf of employees shall only be paid directly to the insurance carrier or third party administrator. No such insurance premiums shall be paid directly to the employee except as otherwise provided for in a separation agreement. 20.3.4 Part-time Employees. Health insurance premium contributions shall be made on a prorated basis for bargaining unit employees qualifying for insurance coverage but working less than full time. For example, for a .5 FTE employee the city would pay 50% of the 90% or 80% employer share, to a prorated maximum, and the employee would pay the remainder. 20.4 Section 125. The employer shall institute an IRS Section 125 plan forthe purpose of allowing the employee contribution toward health insurance premiums to be a tax free payroll deduction. Additionally, the employer may, in its discretion, institute an IRS Section 125 Flexible Spending CAP081414 Page 136 Arrangement plan and make such plan available to all employees on a voluntary basis at anytime during the life of this agreement. 20.5 Health Reimbursement Arrangement. The City has adopted the HRA VEBA standard plan offered and administered by the Voluntary Employee's Beneficiary Association Trust for Public Employees in the Northwest ("plan"). The standard plan shall be integrated with the City's group medical plan and the City shall remit contributions only on behalf of eligible employees who are enrolled in or covered by the City's group medical plan. The City shall contribute to the plan on behalf of all bargaining unit employees defined as eligible to participate in the plan. Each eligible employee must submit a completed and signed enrollment form to become an eligible participant and become eligible for benefits under the plan. Contributions on behalf of each eligible employee shall be based on direct employer contributions. Eligibility is limited to bargaining unit members enrolled in the City's medical insurance plan. Employer contributions shall be $145 for each month worked, contributed on a monthly basis on behalf of eligible full-time employees. Contributions for eligible employees not working full time, or not working a full month, except those employees on paid leave, shall be prorated based on FTE. 20.6 Long Term Disability Insurance. The City shall provide full time employees long term disability insurance that provides, at a minimum, a 662/3% benefit effective the 91" day of the disability. 20.7 Life Insurance. The City shall provide full time employees a term life insurance benefit policy equal to one years' pay. The one years' pay shall be calculated once each year on July 1 by multiplying the hourly rate by 2080 hours. In addition, to the extent the carrier permits, the City will allow employees to purchase additional life insurance atthe employee's expense. ARTICLE XXI - DRUG AND ALCOHOL POLICY 21.1 Drug and Alcohol Policy. The City's adopted Drug and Alcohol Policy is, by this reference, made a part of this Agreement. Employees who hold a job-related CDL shall be subject to Department of Transportation (DOT) random testing requirements. ARTICLE XXII - OUTSIDE EMPLOYMENT 22.1 Outside Employment. No employee covered by this Agreement shall carry on concurrently with his/her public service any private business or undertaking or other employment which affects the time, quality or efficiency of the employee's City work, or which casts discredit upon or creates embarrassment for the City or conflicts with the interest of the City of Central Point. The City Manager or his designee shall, in his/her discretion enforce the terms of this Article, and such enforcement shall be subject to the grievance procedure. CAP081414 Page 137 ARTICLE XXIII -DISCIPLINE AND DISCHARGE 23.1 Discipline. No regular, non -probationary employee shall be disciplined or discharged except for just cause. Discipline will normally be progressive. However, if a violation of a City policy or work practice is of a serious enough nature, an employee may be discharged without prior disciplinary warnings. Oral warnings, counseling or other oral communication are considered discipline and shall be documented; however, such documentation shall not be considered a written disciplinary action, nor be subject to the grievance procedure, and such documentation will not be placed in the employee's personnel file. 23.2 Imposition. The City, in disciplining an employee, shall make a reasonable effort to impose such discipline in a manner that will not unduly embarrass or humiliate the employee before other employees or the public. 23.3 Probationary Employee. A probationary employee as defined in Article VIII, Probation, Section 1, shall serve at the pleasure of the City and may be disciplined, or discharged for any reason, at any time during the probationary period, and such discipline or discharge shall not be grievable. 23.4 Grieving Discipline. Any disciplinary action, except oral reprimands, counseling, verbal warnings, or other oral communications imposed upon an employee, if protested, shall be protested through the grievance procedure, Article XXIV, Grievance Procedure. However, written reprimands may be processed only through step 3 of the grievance procedure. 23.5 Union Representation. An employee shall, upon request, be given the opportunity to have a Union representative present at all disciplinary meetings. ARTICLE XXIV - GRIEVANCE PROCEDURE 24.1 Definition. A grievance is defined as a claim by an employee and/or Union that there has been a violation of the bargaining agreement. 24.2 Informal Resolution. When such alleged violations arise, an attempt should be made by the employee and his/her immediate supervisor to settle them informally. A problem which cannot be resolved informally will be processed as a grievance in accordance with Article XXIV, Section 3. 24.3 Grievance Procedure. Each grievance will be processed in the following manner: Steal. Within 15 calendar days after the occurrence of the cause of complaint, the employee and/or the Union will reduce the grievance to writing, stating the reasons therefore, the contract provision violated, the date of the occurrence, and the remedy requested and will present it to the employee's immediate supervisor. Within 10 business days after the grievance CAP081414 Page 138 is submitted to the supervisor, the supervisor will respond in writing. If s/he wishes, the employee involved may be accompanied at any grievance -related meeting by a Union representative of his/her choice who is reasonably available. Step ll. If the grievant is not satisfied with the response to the grievance by the supervisor, s/he may, within 10 business days of receipt of the supervisor's decision, request in writing that the department head review the decision. If the supervisor is the department head, the grievance will skip to Step III. Within 10 business days of such request, the department head shall render his/her decision in writing. Step III. If the grievant is not satisfied with the disposition of the grievance by the department head, s/he may, within 10 business days of his/her receipt of said decision, request in writing, that the City Manager review the decision. Within 10 business days, the City Manager shall render his/her decision in writing. Step IV. If the grievant is not satisfied with the disposition of the grievance by the City Manager, the Union may, within 10 business days from receipt of the City Manager's decision, request, in writing, that the grievance be brought to arbitration. If a timely, valid request has been made, the parties shall jointly request from the State Conciliation Service, a list of seven arbitrators residing in Oregon who are members of the American Arbitration Association and, beginning with the grieving party/Union, the parties shall alternately strike names. The name remaining shall be the arbitrator. Seven business days shall be allowed for the striking. The parties may, by mutual agreement, request new panel. The hearing under this procedure shall be kept informal and private, and shall include only such parties in interest and/or designated representatives. The arbitrator shall render a decision within 30 calendar days from the date of the formal hearing. The power of the arbitrator shall be limited to interpreting this Agreement and determining if the disputed article or portion thereof has been violated. The arbitrator shall have no authority to alter, modify, vacate or amend any terms of this Agreement or to substitute his/her judgment on a matter or condition for that of the City where the City has not negotiated and limited its authority on the matter or condition. The decision of the arbitrator within these stated limits shall be final and binding on both parties. No issue whatsoever shall be arbitrated or subject to arbitration unless such issue results from an action or occurrence which takes place following the execution date of this Agreement, and no arbitration determination or award shall be made by the arbitrator whatsoever prior to the execution date of this Agreement. In case of a grievance involving any continuing or other money claim against the City, no award shall be made by the arbitrator which shall allow any alleged accruals for more than 10 calendar days prior to the date when such grievance shall have first been presented. 24.4 Expenses. Expenses for the arbitrator's services and the proceedings shall be borne equally by both parties. However, each party shall be completely responsible for all costs of preparing and CAP081414 Page 139 presenting its own case, including compensating its own representatives and witnesses. If either party desires a record of the proceedings, it shall solely bear the cost of such record. In the event the arbitrator finds that s/he has no authority or power to rule in any case, the matter shall be referred back to the parties without decision or recommendation on the merits of the case. 24.5 Time Limits. All parties subject to these procedures shall be bound by the time limits contained herein. However, time limits may be extended by mutual consent of both parties. If either party fails to follow such limits, the following shall result: a. If the grievantfails to respond in a timely fashion, the grievance shall be deemed waived. L. If the party being grieved against fails to respond in a timely fashion, the grievance shall proceed to the next step. 24.6 Grievance File. All documents, communications and records dealing with the processing of a grievance shall be filed in a separate grievance file, and will not be placed in the personnel file. However, evidence of any discipline imposed and an explanation of the action which resulted in such discipline will be placed in the employee's personnel file. ARTICLE XXV - UNPROTECTED STRIKE ACTIVITY AND LOCKOUT 25.1 Lockout. There shall be no lockout of employees by the City as a consequence of any dispute arising during the period of this Agreement. 25.2 Strike. The Union will not initiate or engage in, and no employee(s) will participate or engage in any strike, slowdown, picketing, boycott, sick-out or other interruption of work during the term of this Agreement. 25.3 Union Responsibility. Should a strike, slowdown, picketing, boycott or other interruption of work occur, the Union, upon receiving notice of a strike, slowdown, picketing, boycott or other interruption of work which it has not authorized, will take all reasonable steps to terminate such activity and induce the employees concerned to return to work. If the Union takes such action, it shall not be held liable by the City for unauthorized activity of the employees involved. 25.4 Discipline. In the event employee(s) participate in a strike, slowdown, picketing, boycott, sick- out or other interruption of work in violation of this Article, the participating employee(s) shall be subject to disciplinary action which may include discharge. 25.5 Wages and Benefits During Work Interruption. It is understood that employees shall not be entitled to any benefits or wages whatsoever while they are engaged in such work interruption. CAP081414 Page 140 ARTICLE XXVI -SAVINGS CLAUSE 26.1 Savings Clause. Should any Article or section thereof of this Agreement be held unlawful and unenforceable by any Court of competent jurisdiction, such decision of the Court shall apply only to the specific Article or section thereof directly specified in the decision. The remainder of this Agreement shall remain in effect pursuant to the terms of the Duration Article. Upon such declaration, the parties agreeto immediately negotiate a substitute, if possible,forthe invalidated portion thereof. ARTICLE XXVII — DURATION 27.1 Duration. This Agreement shall be effective upon ratification and shall remain in effect through June 30, 2017. ARTICLE XXIX— EXECUTION/SIGNATURES Executed this —_— day of 2014 at Central Point, Oregon, by the undersigned officers by authority and behalf of the Cityof Central Point and Teamsters Local Union No. 223. Teamsters Local Union No. 223 Cityof Central Point Clayton Banry, Secretary Treasure Hank Williams, Mayor Brent Jensen, Labor Representative Chris Clayton, City Manager Return to Agenda CAP081414 Page 141 Effective July 1, 2015, Step A of the pay scale shall be increased by a percentage equal to the 12 -month change in the U.S. All Cities CPI -U index ending in January 2015, with a minimum of 0% and a maximum of 3.5%. Each subsequent Step shall be 5% greater than the lower step (A"1.05=B, 3* 1.05-C, etc.) Effective July 1, 2016, Step A of the pay scale shall be revised by a percentage equal to the 12 -month change in the U.S. All Cities CPI -U index ending in January 2016, with a minimum of 0% and a maximum of 3.S%. Each subsequent Step shall be S% greater than the lower step. CAP081414 Page 142 APPENDIX A General Service Bargaining Unit Pay Scale Effective July 1, 2014 Part A: General Service Bargaining Unit Positions Classification Title Grade Step A Step B Step C Step D Step E Step F Grade 2-3 GS2-3 15.42 16.19 17.00 17.85 18.75 19.68 Office Assistant 2,673 2,807 2,947 3,095 3,249 3,412 Grade 4 GS4 16.82 17.67 18.55 19.48 20.45 21.47 Account Clerk: Accounts Payable 2,916 3,062 3,215 3,376 3,545 3,722 Account Clerk: Payroll/Purchase Orders Account Clerk: Utility Billing Parks Maintenance Worker Planning Support Specialist Utility Worker Grade 5 GS5 18.91 19.85 20.85 21.89 22.98 24.13 Accounting Specialist 3,277 3,441 3,613 3,794 3,984 4,183 Assistant Engineering Technician Customer Service Technician Equipment MaintlFabrication Technician PW Administrative Assistant Recreation Programs Coordinator Senior Utility Worker Grade 6 GS6 20.94 21.99 23.09 24.24 25.45 26.73 Engineering Technician - GIS 3,630 3,811 4,002 4,202 4,412 4,632 Parks Lead Recreation Coordinator: Special Events/Mktg Grade 7 GS7 23.08 24.24 25.45 26.72 28.06 29.46 Community Planner 4,001 4,201 4,411 4,632 4,863 5,107 Foreman: Streets, Water Grade 8 GS8 25.83 27.12 28.47 29.90 31.39 32.96 Construction Management Coordinator 4,477 4,700 4,935 5,182 5,441 5,713 Environmental Services Coordinator Information Technology Specialist Grade 9 GS9 28.67 30.11 31.61 33.19 34.85 36.59 4,970 5,218 5,479 5,753 6,041 6,343 Effective July 1, 2015, Step A of the pay scale shall be increased by a percentage equal to the 12 -month change in the U.S. All Cities CPI -U index ending in January 2015, with a minimum of 0% and a maximum of 3.5%. Each subsequent Step shall be 5% greater than the lower step (A"1.05=B, 3* 1.05-C, etc.) Effective July 1, 2016, Step A of the pay scale shall be revised by a percentage equal to the 12 -month change in the U.S. All Cities CPI -U index ending in January 2016, with a minimum of 0% and a maximum of 3.S%. Each subsequent Step shall be S% greater than the lower step. CAP081414 Page 142 Resolution Classification Pay Plan CAP081414 Page 143 l A CENTRAL ADMINISTRATION DEPARTMENT POINTChris Clayton, City Manager • Deanna Casey, City Recorder • Barb Robson, Human Resources Director STAFF REPORT August 14, 2014 AGENDA ITEM: Classification Pay Plan Revision Consideration of Resolution No. Revising the Classification Pay Plan STAFF SOURCE: Barbara Robson, Human Resources Director BACKGROUND/HISTORY: Each year the Council is asked to approve the Classification Pay Plan with any revisions from the prior approved plan. In June when the pay plan is normally brought to the council, the City was still in contract negotiations with the General Service bargaining unit, so it was delayed. This proposed, revised pay plan reflects changes for all employee groups since the last pay plan was approved by council in December 2013, and has an effective date of July 1, 2014. Part A of the pay plan (General Service Bargaining Unit) has been updated to reflect a 1.6% cost of living increase pursuant to the contract provided to the Council for ratification at the August 14, 2014 meeting. The COLA amount was determined by the 12 -month change in the CPI -U from January 2013 to January 2014. Also, the list of classification titles has been revised to reflect changes over the last year. Part B of the pay plan (Police Bargaining Unit) has been updated to reflect the addition of a "Step F" pursuant to the provisions of the bargaining agreement ratified last August. There were no other changes to Part B of the pay plan. Part C of the pay plan (management/non-represented) reflects corrections only. The maximum amount listed for Band I should be $5,600 for both Band I positions listed, and the minimum amount listed for Band II should be $5,150, per the approved management compensation plan document. RECOMMENDATION: Motion to approve Resolution _ A Resolution revising the Classification Pay Plan. ATTACHMENTS: Classification Pay Plan Return to Agenda CAP081414 Page 144 RESOLUTION NO. FIT 041101l111IS] 01* WRif0[viI:IX4]W-lulI1N/e1111IS] 7]e\I]Ie\01 RECITALS: Chapter 2.48 of the Central Point Code authorizes and directs the City Council to adopt rules relating to personnel matters. The City Council has heretofore by Resolution Number 1085 adopted and revised such rules, including the Classification Pay Plan. Policy 65.2.3 of the Personnel Policies and Procedures provides that the Council shall, by resolution, adjust the salaries and rates of compensation and benefits for all City officers and employees. The City Council deems it to be in the best interest of the City to make revisions thereto. The City of Central Point resolves as follows: The Classification Pay Plan for bargaining unit and management employees, as attached, is hereby ratified and adopted. Passed by the Council and signed by me in authentication of its passage this day of 20 Mayor Hank Williams ATTEST: City Recorder CAP081414 Page 145 Classification Pay Plan Effective July 1, 2014 Part A: General Service Bargaining Unit Positions (hourly) Classification Title Grade Step A Step B Step C Step D Step E Step F Grade 2-3 GS2-3 15.42 16.19 17.00 17.85 18.75 19.68 Office Assistant Grade GS4 16.82 1].67 18.55 19.48 2045. 21.47 Account Clerk'. Accounts Payable Account Clerk'. Payroll/Purchase Orders Account Clerk'. Utility Billing Community Development Support Specialist Parks Maintenance Worker Utility Worker Grades GSS 18.91 19.85 2085. 21.89 22.98 24.13 Assistant Engineering Technician Customer Service Technician Equipment Maint/Fabrication Technician PW Administrative Assistant Recreation Programs Coordinator Senior Utility Worker Grade GS6 2094. 21.99 23.09 24.24 25.45 26.73 Acctg/Business Services Coordinator Engineering Technician - GIS Parks Lead Recreation Coordinator: Special Events/Mktg Grade GS7 23.08 24.24 25.45 26.72 28.06 29.46 Community Planner Foreman: Streets, Water Grade GS8 25.83 2].12 28.47 29.90 31.39 32.96 Construction Management Coordinator Environmental Services Coordinator Information Technology Specialist Grade GS9 28.67 30.11 31.61 33.19 34.85 36.59 Part B: Police Bargaining Unit Positions Classification Title Grade Step A Step B Step C Step D Step E Step F Police Support Specialist Pilo 2,945 3,094 3,248 3,411 3,581 3,760 Community Services Officer P117 3,126 3,282 3,446 3,619 3,800 3,990 Police Officer P145 4,007 4206, 4,418 4,638 4,870 5,114 Master Police Officer P150 4,431 4,653 4,886 5,130 5,386 5,665 Part C: Exempt, Non -Bargaining Unit, Management Positions Classification Title Band Minimum - Maximum AccountanVFinance Supervisor 1 4,150 5,600 Police Office Manager 1 4,150 5,600 City Recorder 11 5,150 6,900 Police Lieutenant (non -exempt) 11 5,150 6,900 Parks & Recreation Manager 11 5,150 6,900 Public Works Operations Manager 11 5,150 6,900 Building Division Manager 111 6,150 8,000 Police Captain 111 6,150 8,000 Department Director (CD, FIN, HR, IT, PPW) IV 6,500 8,700 Police Chief V 7,150 9,100 Approved by Council Return to Agenda CAP081414 Page 146 Business Run 4 Freedom Financial Report CAP081414 Page 147 x5W__ Parks & Public Works Department AOW%kMatt Samitore, Director CENTRAL POINT STAFF REPORT DATE: AUG 14, 2014 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: JENNIFER BOARDMAN, MANAGER SUBJECT: RUN 4 FREEDOM REPORT The Central Point Parks and Recreation Department in conjunction with Anytime Fitness held the 4th annual Run 4 Freedom and Kids Fun Run on July 4, 2014. Below are the details regarding event including true costs. A. First, the run was very successful and we had many positive comments. While we didn't have a large sponsor this year, we did have several sponsors that helped provided merchandise in the goodie bags for the adult run. B. The kids run had a total of 189. The adult run 183 entries. We also offered pre -race bag pick up which was helpful to cut down on staff costs on the day of the race. Adult Run Budget Revenue online Revenue $ 1,957.50 Cash Pre Reg $ 710.00 Cash Day of Race $ 740.00 Total Revenue $ 3,407.50 Expenses Cone Rental $ 240.00 Fire District $ 232.50 Toilet $ 132.00 Bibs/bags $ 157.00 Stutters $ 200.00 Shirts $ 715.00 Prizes $ 26.18 Employee PW $ 464.64 CAP081414 Page 148 Employee Parks $ 720.00 Ribbons Expenses $ 2,167.32 Expenses $ 1,370.00 Parks Donation $ (157.00) Donation Grange Total expenses $ 2,010.32 Net Revenue $ 0.00 Net revenue $ 1,397.18 Kids Run Kids Shirts $ 1,300.00 Ribbons $ 70.00 Expenses $ 1,370.00 Donation Grange $ 1370.00 Net Revenue $ 0.00 We were able to cut down on costs this year by using all of Pine Street as part of the run route. This cut about $800 in costs out of the run expenses. Having a pre -race pick up also cut down on employee costs. Recommendation: The City Council approves the donation of $1397.18 to the Crater Foundation for football scholarships since the helpers of the event were the Crater Football team members. Return to Agenda CAP081414 Page 149 Business Planning Commission Report CAP081414 Page 150 PLANNING DEPARTMENT MEMORANDUM Date: August 14, 2014 To: Honorable Mayor & Central Point City Council From: Tom Humphrey AICP, Community Development Director Subject: Planning Commission Report The following items were presented by staff and discussed by the Planning Commission at a regularly scheduled meeting on August 5, 2014. A. Consideration of a Major Modification per CPMC 17.09 to re -plat portions of Beebe Woods Subdivision, Phases 3 and 4, located in the R-2, Residential Two - Family Zoning District. File No. 14015. A final plat was recorded for Beebe Woods, Phases 3 and 4 in October 2005 and all of the infrastructure improvements were made. Construction began on houses (foundation only) but stopped with the recession. This proposal to re -plat the subdivision will reduce the number of lots (from 33 to 25), replace the two-story with single -story homes and target an older residential population. Central Point East residents voiced their concerns about traffic in their neighborhood and wanted an alternative access built with this re -plat. Under City and State codes, the scope of a modification is limited to the owner's request which is simply to reduce the number of lots. The Commission reasoned that the City approved the subdivision, the owner made the improvements and that the scope and the City's authority was limited to lot (and consequently vehicle trip) reduction. They voted unanimously to approve Resolution No. 805 to re -plat Beebe Woods, Phases 3 and 4. B. Given the concerns raised by residents of the Central Point East Subdivision regarding the traffic in their neighborhood the Commission made a motion to recommend the City Council direct Planning and Public Works staff to evaluate the need for a stop sign on Oakview Avenue at its intersection with Meadowbrook Drive. It was believed that changing demographics in this neighborhood have resulted in more vehicle travel and the need to re-evaluate the use of traffic control devices on Oakview Avenue and Meadowbrook Drive. The Commission voted unanimously in favor of this motion. C. Consideration of a Floodplain Development Application to complete floodway mitigation activities including in -channel bank protection for Griffin Creek and upland grading activities for Twin Creeks TOD, File No. 14001. The Planning Commission reviewed the overall Twin Creeks Floodway Mitigation Project and, after CAP081414 Page 151 deliberation with staff and the applicant's consultant team, approved Resolution No. 806 for a Floodplain Development Permit based on the following findings and conditions: I. Prior to the start of construction (grading within Floodplain only), the applicant shall submit to the City: a. Proof of submittal of CLOMR to FEMA; and b. A copy of all local, state and federal agency permit approvals. Project timing and habitat monitoring requirements set forth in agency approvals shall be a condition of this Floodplain Development Application. 2. Prior to start of construction (grading & channel protection within the Floodway), the applicant shall submit to the City: a. A copy of the CLOMR from FEMA. b. A copy of all local, state and federal agency permit approvals. Project timing and habitat monitoring requirements set forth in agency approvals shall be a condition of this Floodplain Development Application. The Commission also modified a condition of an earlier approval for North Village Phases L II and III Tentative Plan to allow grading within that projects Floodplain in accordance with Condition No. 2 above. Return to Agenda CAP081414 Page 152