ECONOMIC

LOCAL 

FOCUS 

Transportation Hearings 

Home Rule in the Courts 

Recreational Immunity 

The Magazine of the League of Oregon Cities 

June 2016 

What's New in 

ECONOMIC 

DEVELOPMENT? 

Photo by Denice Mattox

Like Us on Facebook 

LOC wants to engage 

with you on Facebook. 

We have enhanced our presence 

with more relevant content and 

resources. 

Like us at: www.facebook.com/LeagueofOregonCities

LOCAL 

FOCUS June 2016 

The Magazine of the League of Oregon Cities 

On the Cover 

What's New in Economic Development? 

15 

16 Trends and Challenges for Oregon Businesses 

19 How Tourism Drives the Growing Economy 

20 RAIN: Fostering Entrepreneurship, Innovation 

23 Showcasing Community Brand & Identity 

Other Features 

28 How changes to the recreational use 

immunity law will affect your city 

7 

Recreational 

Immunity 

28 

Departments 

5 

6 

14 

30 

32 

34 

From the Executive Director 

Transportation Funding in 2017? 

At the League 

6 Public Hearings on Transportation 

7 Apply for the LOC Board 

8 91st Annual Conference 

11 Regional Meetings 

Ask LOC 

City News 

Legal Briefs 

Another Win for Home Rule 

City Events 

www.orcities.org 

June 2016 | LOCAL FOCUS 

3

LOCAL 

FOCUS 

Local Focus is published monthly by: 

League of Oregon Cities 

1201 Court St. NE, #200 

Salem, Oregon 97301 

(503) 588-6550 • Fax: (503) 399-4863 


2016 LOC BOARD OF DIRECTORS 

OFFICERS 

President 

Brad Nanke, Councilor, Salem 

Vice President 

Denny Doyle, Mayor, Beaverton 

Treasurer 

Sandy Toms, Mayor, Boardman 

Immediate Past President 

Peter Truax, Mayor, Forest Grove 

DIRECTORS 

David Allen, Councilor, Newport 

Cathy Clark, Mayor, Keizer 

Lori DeRemer, Mayor, Happy Valley 

Steve Forrester, City Manager, Prineville 

Thomas Frank, Councilor, West Linn 

Camden King, Councilor, Redmond 

Scott Lazenby, City Manager, Lake Oswego 

Jim Lewis, Councilor, Jacksonville 

Rick Olson, Mayor, McMinnville 

Dan Saltzman, Commissioner, Portland 

Timm Slater, Councilor, North Bend 

Eileen Stein, City Manager, West Linn 

MAGAZINE STAFF 

Editor 

Kevin Toon, ktoon@orcities.org 

Assistant Editor 

Kim Bentley, kbentley@orcities.org 

Designer 

Julie Oke, jmoke@orcities.org 

Non-member subscription rate: $96 per year 

Published articles and views expressed in Local Focus do not 

reflect any direct or implied endorsement by the League of 

Oregon Cities unless specifically stated as such. Publication of 

any advertisement should not be considered an endorsement of 

the product or service involved. 

4 LOCAL FOCUS | June 2016 www.orcities.org

FROM THE EXECUTIVE DIRECTOR 

Can a Transportation Funding 

Package Pass in 2017? 

The League recently participated 

in a meeting of legislative leaders 

and transportation stakeholders 

hosted by Governor Brown. She 

outlined a commitment to passing a 

transportation funding package in the 

2017 legislative session. Several legislators 

articulated the urgent need to pass 

such a bill, and a joint legislative committee 

was scheduled to meet at the 

end of May during legislative days. 

The Oregon Transportation Commission 

and the joint legislative committee 

will be touring the state this summer to 

conduct public hearings. It is imperative 

that city officials attend those 

hearings and testify to share the transportation 

needs of their communities. 

The last infusion of transportation 

funding occurred in 2009. That transportation 

funding helped, but funding 

still falls far short of what is needed to 

keep up with maintenance and repair, 

much less new construction to meet the 

impacts of population and commerce 

growth. As reported in the League’s 

latest State of the Cities report, cities 

continue to defer road maintenance 

and repair due to a funding shortfall 

of more than $300 million per year. 

Meanwhile, maintenance and materials 

costs continue to increase. 

A transportation package was not 

passed in the 2016 session for a number 

of reasons. Some of those impediments 

to passage still exist. Failure to 

address transportation infrastructure 

needs will negatively impact current 

economic activity, as well as opportunities 

for economic growth. We would 

call upon legislators in both parties to 

find common ground upon which to 

remove impediments to a transportation 

funding package that will reduce 

the underfunding of the lifeblood of 

Oregon’s economy. 

Returning to the need for city officials 

to participate in this process—unless 

many cities tell their stories about 

needs in their communities, city needs 

may be under-appreciated and a transportation 

funding package might fail 

to proportionately address city needs. 

Cities are an integral part of the state’s 

transportation system and the maintenance, 

repair and upgrading of city 

roads do impact the transportation system 

more than may be fully appreciated 

by those allocating state funding. 

See page 6 for the schedule of 

transportation public hearings. 

Mike McCauley, 

Executive Director 

It is imperative 

that city officials 

attend [the] 

hearings and 

testify to share 

the transportation 

needs of their 

communities. 

“ 

” 



5

At the League 

Legislature to Host Field Hearings on 

Transportation Package 

The Legislature’s Joint Committee on Transportation Preservation 

and Modernization has announced a schedule of hearings 

and site visits throughout Oregon this summer. These factfinding 

meetings will be in preparation for the introduction of 

a comprehensive transportation funding and policy package in 

the 2017 session. 

The need for local input on this issue has been a recurring 

theme in recent discussions with legislative leadership. 

Therefore, it is critical that city officials participate in these 

meetings and describe local transportation needs by telling 

local stories. The League will assist by providing data and messaging 

in the coming weeks. However, it is testimony from city 

officials that will be the most impressive to the committee. 

Contact: Craig Honeyman, LOC Legislative Director – 

choneyman@orcities.org 

Joint Transportation Committee Public Hearings Schedule 

June 13, 5:00 p.m. 

Great Hall, Mount Tabor Building 

Portland Community College 

SE Campus 

2305 SE 82nd Ave, Portland 

June 28, 5:00 p.m. 

Four Rivers Cultural Center Theater 

Treasure Valley Community College 

676 College Blvd., Ontario 

June 29, 2:00 p.m. 

Hermiston High School Auditorium 

600 South First Street, Hermiston 

July 20, 5:00 p.m. 

Prince Lucien Campbell Hall, Room 180 

University of Oregon 

1415 Kincaid Street, Eugene 

August 18, 5:30 p.m. 

Wille Hall, Coats Campus Center 

Central Oregon Community College 

2600 NW College Way, Bend 

August 31, 5:00 p.m. 

Jackson County Library 

Medford Branch 

205 S. Central Avenue, Medford 

September 15, 5:00 p.m. 

Ballroom, Embarcadero Hotel 

1000 SE Bay Blvd, Newport 

September 19, 5:00 p.m. 

Shirley Huffman Auditorium 

Hillsboro Civic Center 

150 E. Main Street, Hillsboro 

September Legislative Days 

To Be Determined 

Oregon State Capitol 

900 Court Street NE, Salem 

New Marijuana 

Resources 

The League’s website has been updated 

with new guidance documents, model 

ordinances, FAQs and more – find it on 

the Marijuana page in the A-Z Index. 



AT THE LEAGUE 

Applications Sought 

for LOC Board 

Continuing the quality programs provided by the League 

depends on the involvement of city leaders. One 

avenue for involvement is service on the LOC Board of 

Directors. 

During the League’s Annual Conference in September, 

League members will elect four directors at large and a 

treasurer to the LOC Board for 2017. After one year, 

the treasurer becomes LOC Vice President, then LOC 

President the following year. According to the League’s 

bylaws, the treasurer position and three of the director 

positions shall be filled by an elected city official. One 

of the four director positions shall be filled by a city 

management employee, for which the LOC Nominating 

Committee will consider the recommendation of the 

Oregon City/County Management Association. For the 

first year of the three-year term, this city management 

position will be “director-elect” (non-voting). 

The League’s five-member Nominating Committee 

recommends candidates for open positions. During 

the annual business meeting on October 1 the entire 

membership will receive the recommendations of the 

Nominating Committee and make the final decision. 

How to Apply 

City officials interested in running for the LOC Board 

are asked to complete the application form on the 

League’s website (on the Board of Directors page, under 

About Us). Completed forms are due to the League 

office by Friday, August 19. Applicants will make a 

presentation to the Nominating Committee during the 

annual conference on Thursday, September 29. 

Serving on the LOC Board is an honor and a responsibility. 

The board has the final say on League policies, 

both in terms of legislative issues and in programs and 

services. A city official’s involvement on the board 

will help the League reflect the values which help cities 

provide quality of life for citizens. 

If you have any questions about the responsibilities of 

board service, please contact any current member of the 

board (see page 4). 

Supreme Court Rules 

for Local Governments 

Earlier this month, the Oregon Supreme Court issued two 

opinions that will have a substantial and beneficial impact 

on cities. In Northwest Natural Gas Company v. City of 

Gresham, the court upheld the city’s home rule authority to 

impose a privilege tax on private utilities. In this case, the 

city amended its license fee ordinance, increasing the fee 

from 5 to 7 percent. Revenues generated from the increase 

were targeted to city-wide services, including police, fire, 

parks and street lights, as opposed to costs related to rightof-way 

management. For this reason, the court characterized 

the 2 percent increase as a “tax” rather than a “fee,” and 

held that the city’s license fee ordinance was within its home 

rule authority. The court expressly left open the question 

of whether a city could rely on its home rule authority to 

tax another local government, in this case a people’s utility 

district (PUD) (see page 32). 

In Horton v. Oregon Health Sciences University, the court 

upheld the validity of the Oregon Tort Claims Act (OTCA), 

overturning prior cases that had held the OTCA unconstitutional. 

The court held that the OTCA’s $3 million liability 

cap on damages imposed against the state and its employees 

in personal injury actions does not violate the Oregon 

Constitution’s remedies or right to jury clauses. The court 

noted that its holding was limited to the circumstances of 

this case and stated that the decision “turns on the presence 

of the state’s constitutionally recognized interest in sovereign 

immunity, the quid pro quo that the OTCA provides, and 

the tort claims limits in this case.” 

The League participated substantially in both cases, filing 

amicus (friend of the court) briefs and assisting the parties 

with their briefs. The court specifically referenced the 

League’s brief favorably in the Gresham decision, a good 

indication that the League’s advocacy efforts are having an 

impact. 

Contact: Sean O'Day, LOC General Counsel – soday@ 

orcities.org 



7

91 ST ANNUAL CONFERENCE 

SEPTEMBER 29 – OCTOBER 1, 2016 

Salem Convention Center 

Conference Registration Opens July 1 

The 91st LOC Annual Conference is scheduled for September 29 – October 1 at the Salem Convention Center. The 

conference is the League’s premier training and networking event and attracts more than 700 attendees. 

Registration opens on July 1. One of the benefits of League membership is a reduced conference rate of $300 

for members who register before Friday, August 5. After that date, the registration fee is $330. 

All the information you need for the conference including speakers, sessions and tours will be a special edition 

within the July issue of the Local Focus and online at www.orcities.org/conference. 

We look forward to seeing you in Salem this fall! 

Keynote Speaker 

Adam Bryant, Author and Corner 

Office Columnist at The New York Times 

Adam Bryant writes the weekly 

Corner Office column for The 

New York Times, interviewing 

CEOs to find the nuggets of 

true leadership that are usually 

hidden between strategy sessions 

and quarterly reports. In 

his books, Bryant reveals the 

five qualities that set highperformers 

apart, and what it 

takes to build and foster a corporate 

culture of innovation. 

By drawing together lessons 

from chief executives from 

companies such as Disney, LinkedIn, Dreamworks and Ford, 

Bryant reveals the keys to success in the business world, including 

the five essential qualities that high performers share. 

Bryant has more than two decades of journalism experience 

as a reporter and editor at both Newsweek magazine and The 

New York Times. He was the lead editor of a series that won the 

Pulitzer Prize for National Reporting in 2010. He also teaches a 

course, "The Practice of Leadership," at Columbia University. 

2016 Conference Highlights 

Here is a sneak peek at what each conference day will bring: 

Thursday, September 29 

• Morning workshops for mayors, councilors and managers 

• Afternoon city tours 

• Two sets of afternoon concurrent sessions 

• Evening welcome reception with trade show 

Friday, September 30 

• All-day trade show 

• Opening Ceremonies with keynote speaker 

• Visit with state agency directors 

• Three sets of concurrent sessions throughout the day 

• Afternoon city tours 

• CIS Reception and Safety Awards 

• Awards Dinner 

Saturday, October 1 

• Membership meeting and City Awards 

• Concurrent sessions 

• Tentative – Luncheon Gubernatorial Forum 


Scholarships Available 

Tight budget at your city? The League of Oregon Cities Foundation may be able to help you attend this training and 

networking event. The Foundation is offering scholarship funds to help city officials attend the 2016 LOC Conference. 

It’s a simple process to apply—for details, visit www.orcities.org/conference. 

Conference Lodging – Where to Stay 

Good news – To facilitate more on-site lodging for member 

cities, the League has secured additional rooms at The Grand 

Hotel adjacent to the Salem Conference Center. 

In addition to the conference center hotel, we have reserved 

more than enough rooms for everyone at the following hotels: 

• Hampton Inn & Suites on Hawthorn Ave. 

• Best Western PLUS Mill Creek Inn 

• Comfort Suites on Hawthorn Ave. 

As with the conference center hotel, all of these locations will 

start taking reservations for our block of rooms on July 1 at 

8:00 a.m. 

At that time, cities can contact any of the hotels and reserve 

up to five rooms under the city name. Attendee names must 

be assigned to those rooms within 21 days of the reservation. 

Reservations for more than five rooms will need to be booked 

through the League. 

To ensure a room in the League’s block at the above hotels, 

cities are advised to make a reservation prior to August 26. 

For more information about hotel room bookings, contact 

Jenni Kistler, LOC Project Coordinator: (503) 540-6599 or 

jkistler@orcities.org. 

NEW IN 2016 

Staying at an Off-Site Hotel? 

We’ve Got You Covered! 

Two shuttle buses will be running continuously 

throughout the conference between off-site hotels 

and the Salem Convention Center. 

Off-Site 

Hotels 

For Your City’s Calendar 

Now 

LOC Award Nominations Open – Information on how to 

nominate a person for an Exceptional Service Award and to 

submit your city for a City Award is available at www.orcities. 

org/awards. 

June 

Conference Scholarships Open – Go to www.orcities.org/ 

conference and click on Scholarships for an application and 

information on how to apply for financial assistance for registration 

fees. 

July 1 

Registration opens and hotel rooms may be booked. 

July 1 - August 12 

CIS Employee Safety Awards submissions accepted – 

for information, visit www.cisoregon.org/awards. 

July 11 

LOC Awards nomination deadline – for information, 

visit www.orcities.org/awards. 

August 5 

Last day to register at the $300 early registration rate. 

September 14 

Conference registration closes. 

September 29 - October 1 

See you at the conference! 



9

91 ST ANNUAL CONFERENCE 

Nominations Open for 

2016 LOC Awards 

The League invites cities to submit nominations for one or 

more of the following awards, which will be presented during 

the LOC Annual Conference in Salem, September 29 - 

October 1. Entry forms are available online at www.orcities. 

org/awards. 

Exceptional Service Awards: 

James C. Richards Memorial Award recognizes an elected 

official who has shown exceptional leadership and contributions 

to his/her city, regional government, the League, and 

state and federal government. 

Herman Kehrli Award is granted to a person who is currently 

or formerly appointed or employed by a city whose exceptional 

contributions to city government in Oregon have 

provided lasting benefits to the community. 

Mark O. Hatfield Statesmanship Award is presented to an 

individual (from the public or private sector) who has demonstrated 

statesmanship and exemplary service which has 

positively affected Oregonians. 

Civic Education Award recognizes educators who have 

promoted local government education in Oregon schools 

and who are committed to nurturing civic responsibility in 

our youth. 

Submission Deadline: Monday, July 11 

City Awards: 

Award for Excellence is given to cities for their innovative 

approaches to city operations and provision of services to 

their citizens. Special consideration is given to programs that 

reduce the cost of government, improve the quality of life, 

and/or increase the quality of municipal services. 

Helen and Alan Berg Good Governance Award honors city 

programs that specifically encourage “reconnecting” citizens 

to their community. Judges consider whether the program 

successfully engages citizens in the local government process, 

enhances the citizens’ awareness of the decision-making 

process at the local level, and/or fosters local leadership 

through hands-on education, planning efforts or volunteerism. 

Submission Deadline: Monday, July 11 

Contact: Jenni Kistler, Project Coordinator, jkistler@ 

orcities.org 

CIS to Recognize Safe Cities 

CIS (Citycounty Insurance Services) and the League will 

again team up to sponsor the annual Employee Safety 

Awards Program for Oregon cities. This program was 

initiated in 1974 to stimulate interest and participation in 

loss prevention programs by providing recognition to cities 

with low accident frequency rates. Safety Awards are 

awarded in categories according to the number of regular 

employees and full-time equivalent volunteer hours. 

Additional information is available at www.cisoregon.org/ 

awards. 

Submission Timeline: July 1 – August 12 

Contact: John Zakariassen, CIS Senior Risk Management 

Consultant – jzakariassen@cisoregon.org or (503) 763-3852 

For Your City’s Budget 

Here are estimates cities can use in their FY 2016-17 

budget process to plan for registration and event costs. 

Costs per attendee 

LOC Member full 

registration 

First-time attendee – 

LOC Member full 

registration 

If registered 

July 1 - Aug. 5 

$300 $330 

$275 $300 

Non-Member $600 $700 

Spouse/Guest $100 $100 

Awards Dinner $45 $45 

If registered 

after Aug. 5 

Special Tours/Workshops 

$35-100 $35-100 

Note: Conference registration closes on September 14. After 

September 14, registration must be done on-site and will cost 

an additional $50. 


LOC Regional Meetings 

Share Your Ideas 

AT THE LEAGUE 

The League invites city officials 

to attend a regional meeting in 

your area. City input is critical to 

help the League effectively serve 

its membership. 

Why you should attend: 

• Hear a report on the 2016 

legislative session and 

the League’s ongoing 

policy work 

• Learn about the latest resources 

from LOC that can help your 

city, including new websites 

dedicated to property tax and 

interactive city data 

• Receive a mini-training session 

on meetings law following the 

recent court decision, Handy V. 

Lane County 

• Provide feedback and suggestions 

to help the League serve 

you better 

There is no cost to attend. For planning 

purposes, please RSVP (with location) 

to Debi Hager at dhager@orcities.org or 

(503) 588-6550. 

LOC President Brad Nanke greets city officials at the Hermiston 

Regional Meeting in May. 

LOC Regional Meeting Schedule 

June 3 

11:30 a.m.* Astoria – City Council Chambers 

(1095 Duane Street) 

June 10 

11:30 a.m.* McMinnville – Civic Hall (230 NE 2nd Street) 

June 15 

4:00 p.m. Bandon – Community Center 

(1200 SW 11th Street) 

*Lunch will be provided at the 11:30 a.m. meetings. 

For more information, please contact Mike McCauley at 

mmccauley@orcities.org, Susan Muir at smuir@orcities.org, 

or call (800) 452-0338 or (503) 588-6550. 



11

AT THE LEAGUE 

LOC Regional Meetings 

June 3 – Astoria 

June 10 – McMinnville 

June 15 – Bandon 

LOC Board Meeting 

June 17 – Salem 

Upcoming 

EVENTS 

OCCMA (City Managers) Summer Conference 

July 12-15 – Bend 

OMA (Mayors) Summer Conference 

July 21-23 – Lincoln City 

LGPI Annual Conference 

August 17-18 – Salem 

City Hall Week 

September 19-23 – Statewide 

OAMR Annual Conference 

September 20-23 – Ashland 

ICMA Annual Conference 

September 25-28 – Kansas City, Mo. 

League Training 

Schedule 

Registration Now Open 

Community Visioning & Strategic Planning 

Sherwood July 27 

Customer Service on the Front Line 

Newport July 19 

Land Use Planning in Oregon: A Fifty (plus) 

Year Legacy 

Sherwood June 16 

Media Relations Training and Crisis 

Communication Strategies 

Salem June 27 

System Development Charges 

Salem June 6 

On the Web: Additional classes added often. 

Visit www.orcities.org/training to register and 

view complete course offerings and descriptions. 

LOC Board Meeting 

September 28 – Salem 

OMA (Mayors) Board Meeting 

September 28 – Salem 

LOC Annual Conference (see page 8) 

September 29 - October 1 – Salem 

OGFOA Conference 

October 24-26 – Salem 

OCCMA (City Managers) Board Retreat 

November 3-4 – Silverton 

NLC Fall City Summit 

November 16-19 – Pittsburgh, Pa. 

LOC Board Retreat 

December 2 – Salem 

Are You Signed 

Up for the LOC 

Bulletin? 

Stay current on legislative news, action alerts, 

breaking news, bill summaries and more. The 

LOC Bulletin is emailed every Friday. 

To be added to the email list, email loc@ 

orcities.org. 

Upcoming events are also found on the 

Calendar page at www.orcities.org. 


AT THE LEAGUE 

City Deadline Calendar 

Dates Cities Need to Know 

JUNE 

JUNE 23 

Budget: Enact Resolutions or Ordinances to Adopt Budget, 

Make Appropriations, Impose and Categorize Taxes 

Budget. After the budget hearing, the city must prepare and 

enact resolutions or ordinances that adopt the budget, make appropriations, 

and, if property taxes are needed, levy and categorize 

each tax. Those resolutions or ordinances must be adopted 

before June 30. 

State Shared Revenues. Cities may only receive state shared 

revenues by electing to receive them. We recommend enacting 

such a resolution during the meeting to adopt the budget. Cities 

must submit to the Department of Administrative Services 

documentation certifying compliance with state law and the 

city’s intent to receive tax revenues. 

Note: Although the budget process may begin sooner or later 

than noted, all budget resolutions or ordinances must be 

adopted by June 30. [ORS 294.456 (budget); 294.095 (budget 

deadline); ORS 221.770 (shared revenues)] 

JULY 21 

September Election: File Statements of Offices, 

Candidates and Measures with County Elections 

Filing Officer 

Last day for city elections officer to file with the county 

clerk a statement of the city offices to be filled, information 

concerning all candidates and measures to be voted 

on. (ORS 254.095) 

JULY 31 

State Shared Revenues 

Cities may receive state shared revenues only by adopting 

an ordinance or resolution electing to receive them. 

That ordinance or resolution must be adopted by July 31. 

In addition, by July 31, cities must submit to the Department 

of Administrative Services documentation certifying 

compliance with state law, including that the state shared 

revenues hearing has occurred. (ORS 221.770) 

JULY 

JULY 15 

Budget: File Tax Certification with County Assessor or 

Budget Documents with Department of Revenue 

Cities that certify an ad valorem property tax must file with 

the county assessor two copies of the following documents: 

(1) each ordinance or resolution to adopt the budget, make 

appropriations, and itemize, categorize, and certify the taxes; 

(2) the notice of levy and the categorization certification form; 

(3) a statement confirming the ad valorem property taxes approved 

by the budget committee; and (4) successful ballot measure 

for any new tax imposed for the first time. If a city does not 

impose a tax on property, it must file a copy of the resolutions or 

ordinances adopting the budget and making appropriations with 

the Department of Revenue. 

Note: Although the budget process may begin sooner or later 

than noted, the documents referenced above must be filed with 

the county assessor or the Department of Revenue by July 15. 

(ORS 294.458; ORS 310.060) 

PERS Reports 

Cities must remit a regular report to the PERS Board 

no later than three business days after the end of the 

city’s pay cycle. (ORS 238.705; OAR 459-070-100) 


June 2016 | LOCAL FOCUS 13

AT THE LEAGUE 

ASK 

LOC 

Q: 

How does a city create an urban 

renewal agency, and how is that 

agency funded? 

A: 

Under Oregon law, every city has an urban 

renewal agency that is dormant until the city 

council passes a non-emergency ordinance to activate 

it. The role of an urban renewal agency is to improve 

areas in the city that are “blighted”—areas that are detrimental 

to the public health, safety or welfare of the community 

due to deterioration, obsolescence, unsafe structures, 

inadequate streets or utilities, or areas that are otherwise 

underdeveloped, unproductive or lack open space. 

Activating the Agency 

To activate a city’s urban renewal agency, the city council 

must pass a non-emergency ordinance stating that blighted 

areas exist in the city and that the city needs an urban renewal 

agency. The urban renewal agency is a separate legal 

entity, so the ordinance must specify the governing body 

of the agency. Often, the city council will designate itself to 

serve as the governing body of the urban renewal agency 

although a council could create a separate board or agency 

to serve as the governing body. 

Once activated, an urban renewal agency carries out its 

purpose by creating an urban renewal plan to improve the 

blighted areas in the city using the financing mechanism 

described below. The urban renewal plan will identify the 

urban renewal district, and authorize projects within that district 

on which money can be spent. The urban renewal plan 

will include details regarding the cost, schedule and funding 

for urban renewal projects. An annual financial report shall 

be provided by the urban renewal agency to the city on or 

before January 31 each year thereafter. 

The public has opportunities to be involved in developing 

the urban renewal plan as the plan must be presented to 

the planning commission, the county commissioners and, 

in some cases, other local governing bodies. Ultimately, the 

city council will hold a hearing on the plan, and if the council 

decides to adopt it, the council will do so using a non-emergency 

ordinance. 

Funding Urban Renewal Projects 

Urban renewal projects are funded through a public financing 

tool known as Tax Increment Financing. When an 

urban renewal district is established, the county assessor 

determines the current assessed value of all property in the 

district and freezes that tax base. Whatever local revenue a 

local jurisdiction received from the frozen base will remain 

the same until the urban renewal area is terminated. As 

tax values increase above this frozen base, however, the tax 

revenues resulting from the increase in permanent rates 

above the frozen base are directed to projects in the urban 

renewal district. Assessed values can increase yearly at the 

3% maximum allowed by Oregon law or by more than this if 

new development occurs within the area. The revenues generated 

above the frozen tax base are called the “increment.” 

When the urban renewal area expires, the frozen base also 

expires, and the local taxing jurisdictions resume receiving 

taxes on the full assessed value of the area. In 2009, the 

Oregon Legislature established a formula for maximum indebtedness 

of an urban renewal plan, added restrictions on 

plan amendments which increase maximum indebtedness, 

and required the concurrence of overlapping taxing districts 

for substantial plan amendments. 

The statutory authority for activating and operating an 

urban renewal agency can be found in ORS chapter 457. A 

city considering activating its urban renewal agency and 

adopting an urban renewal plan should work closely with its 

city attorney. 

For more information on this and other urban renewal or 

public financing issues, consult these League resources 

online: 

• City Handbook: Chapter 4, section D: Financing Public 

Facilities (urban renewal is discussed at page 14-19 and a 

host of other financing tools are described in the pages 

which follow) 

ààThe Handbook is an electronic reference for city officials 

providing information on city operations, policy 

setting, and governance. 

ààTo access, click on the blue “City Handbook” button on 

the League homepage (www.orcities.org). 

• A-Z Index: Urban Renewal 

ààAn online repository of information, including a page 

devoted to urban renewal with links to sample ordinances 

and plans. 

ààTo access, click on the blue “A-Z Index” button on the 

League homepage (www.orcities.org) and then on “U” 

for Urban Renewal. 


What's New in 

ECONOMIC 

DEVELOPMENT? 

The pursuit is ongoing, and the 

right strategy can be different for 

every community. This month we 

look at what’s working, and the 

resources available to cities. 



Trends & Challenges for 

Oregon Businesses 

An Interview with Business Oregon 

Director Chris Harder 

Oregon businesses continue to grow exports, revenues, jobs and the 

economy. To help cities understand Oregon’s present economic development 

circumstances, trends and challenges, we asked the new director of 

Business Oregon for some perspective on state level efforts and priorities to help 

businesses grow and help communities develop their infrastructure to support 

future business expansion. 

Please give us a brief biographic sketch of your 

background. 

I grew up in Oregon, and most recently served as economic 

development director at the Portland Development Commission. 

In that role, I managed the Business & Industry 

Division, leading Portland’s business retention, expansion and 

recruitment efforts, as well as programs to support entrepreneurship, 

innovation and trade. Before that, I was the 

director of economic analysis for the North Carolina Department 

of Commerce and a senior budget analyst in the North 

Carolina Office of State Budget and Management. I think my 

mix of experience in leading business development, innovation 

programs, economic analysis work and management are a 

great fit for my new role. 

Oregon is seeing business growth—what industries are 

seeing the most? What are the current trends? What 

about areas of decline? 

Our research and policy team just completed an updated 

analysis on industry trends and concentration. Software and 

IT employment at companies like Elemental and Simple has 

grown by more than 50 percent in the past 10 years, with 

solid projections over the next 10. Professional and technical 

services has also grown by slightly more than 50 percent. 

Food and beverage employment at companies like ConAgra in 

Boardman grew by almost 30 percent in the past 10 years, and 

has grown exports by more than 150 percent. This growth 

is also happening at a much higher rate than other states. 

Computer electronics and semiconductor are always a huge 

part of our economic engine, paying wages of about $5 billion 

in Oregon, and employing 40,000. 

In looking for areas of decline…simply put, there are none 

in the short-term right now. Every significant industry and 

regional economy in Oregon is growing. But, with diverse 

regional economies that growth is slower in some areas than 

others and started much later in some than others. Oregon’s 

most significant industries have all shown some level of 

growth across multiple indicators. If you took a narrow look 

at just one indicator of larger industries, you can find decline. 

For instance, wood and forest products have seen a long-term 

employment decline, but that’s not the whole story, it has 

grown employment by 17 percent in the last five years, and 

10-year export growth is about 50 percent, with an average 

wage above the state average. So it is still a competitive and 

important industry for Oregon. 

The Legislature is passing more and more property tax 

economic development incentives, while economic 

development purposed income tax credits are on the 

decline. This means local governments are giving up 

more revenues while the state is giving up less. How can 

local governments and the state partner on incentives? 

Looking at most of the larger projects that are using incentives 

around the state, I’d say there is good partnership taking 

place, with firms using both property tax abatement like 

enterprise zones and strategic investment programs, and state 

cash incentives like the Business Expansion Program and Strategic 

Reserve Fund, as well as e-commerce zone credits. Our 

financing programs are also very popular for small businesses 

looking for access to capital. The benefit of the property tax 

abatement is that it can entice development and significant 

capital expenses for businesses that might not happen but for 

the incentive, and then the property comes on the tax rolls 

after a finite period of time, while still paying tax on the land 

as well as community service fees all the while. 



8.0% 

Employment Change Relative to Pre-Recession Peak 

Employment Change Relative to Pre-Recession Peak 

6.0% 

4.0% 

2.0% 

0.0% 

-2.0% 

-4.0% 

-6.0% 

-8.0% 

-10.0% 

-12.0% 

-14.0% 

2007 2008 2009 2010 2011 2012 2013 2014 2015 

Oregon North Coast Portland Metro Willamette Valley 

Southwest Central Northeast Southeast 

Source: Oregon Employment Department, Current Employment Statistics, Oregon Series. 

Our business income tax structure is very competitive, and 

there simply is often not much to abate for a new business 

launching its operation. We do have the Oregon Investment 

Advantage program that works well to provide a multi-year 

break from income taxes for brand new operations in eligible 

counties. 

Cities often interact with Business Oregon through the 

Infrastructure Financing Authority (IFA), be it for financing 

needs of water, sewer, housing, utilities, roads, etc. 

IFA grants and financing are helpful, but the need exceeds 

the available resources. What are your thoughts 

on how to help narrow those gaps? 

Ensuring that we continue to capitalize our well-used infrastructure 

programs is a priority to the agency and many other 

state leaders. We know the demand is strong. We’re seeing 

particularly more interest now as we have come out of the 

recession. During the recession communities were understandably 

more hesitant to take on big projects and the debt 

that comes along with them. The reality is that while there 

is strong demand, there is of course a limited supply of public 

dollars, and the dollars have many valid demands on them 

from many different public needs. One thing we’d like to do 

more of is work with communities to address infrastructure 

needs in advance of systems totally breaking down, as replacement 

costs can be enormously more than some maintenance 

along the life of the system. 

Business Oregon’s focus on supporting the retention 

and expansion of existing Oregon businesses seems 

to be working. What are the department’s priorities in 

this area? 

While large business recruitments and expansions make headlines—and 

we certainly welcome these projects—our focus 

is retaining Oregon businesses, expanding Oregon businesses 

and then lastly recruiting new business to the state, in that 

order of priority. 

The vast majority of our programs are geared towards small 

business—and it’s not just about the money. Our global trade 

(continued on page 18) 



Trends & Challenges for Oregon Businesses (continued) 

team works with small businesses to provide input on how to 

find distributors in foreign markets and connect them with 

staff we have overseas, then provide a small matching grant to 

help offset the costs of exhibiting at a tradeshow. So it’s about 

providing expertise paired with appropriate capital. 

Relatively new to Business Oregon is our focus on innovation 

and entrepreneurship, where we assist many of our state’s 

young, fast-growing firms, in many different industries. Just 

this last year, in partnership with the governor, we launched 

the Rural Entrepreneurship Development Initiative. In addition, 

Oregon InC and the Oregon Growth Board remain 

critical programs to promoting the commercialization of new 

technologies and scaling high growth firms. 

Oregon’s economy is growing, but there are still parts of 

the state that are struggling to get back to pre-recession 

numbers. What is the state doing to help? 

We really are in an unprecedented period of growth right now. 

Record employment levels, a strong gross domestic product 

and the second-best personal income growth in the country—these 

are accomplishments we should celebrate. But 

one of our biggest roles as the state’s economic development 

agency is to create opportunities for economic growth where 

it has not been as strong. And rural parts of the state have 

not fared as well as urban areas. They are all growing, but 

at much smaller rates, and their recovery started later than 

urban Oregon. 

We also have to face the reality that it’s unlikely some industries 

will get back to levels they were at 10, 20 years ago, 

and there’s a need to diversify or innovate. So we’re doing 

things like supporting innovations to wood products firms like 

advancing cross laminated timber (CLT). We’re also helping 

communities create new assets that can bring growth down 

the line, like the unmanned aerial vehicle testing ranges in 

Pendleton, Warm Springs and Tillamook. The food and beverage 

sector and its deep connections to the state’s agriculture 

industry also provides a competitive outlet for growth in rural 

Oregon. 

The state continues to struggle to have industrial land 

that is shovel-ready. Do you see ways to have more 

shovel-ready sites available? 

Our brownfields and regionally-significant industrial lands 

programs continue to serve employment sites across the state 

with either funding or regulatory assistance. While the shovel-ready 

certification program has certified the lowest hanging 

fruit, the goal now is to work with more challenging sites. We 

are developing an inventory of buildable employment-zoned 

land and collaborating with the Regional Solutions Teams 

to identify priority employment sites for the teams to focus 

resources on to make the sites marketable and position them 

for specific industries. 

Chris Harder was appointed by Governor Brown in February and 

confirmed by the Senate in May to serve as the director of Business 

Oregon, Oregon’s economic development agency. The agency 

works to create, retain, expand and attract businesses that provide 

sustainable, living-wage jobs for Oregonians through public-private 

partnerships, leveraged funding, and support of economic opportunities 

for Oregon companies and entrepreneurs. 

For more information on Business Oregon programs, go to 

www.oregon4biz.com. 

State Office Will Assist Cities, Small Businesses 

Small businesses are a critical part Oregon's economy. 

Almost one-half the jobs in the state are with companies 

with fewer than 100 employees. Small businesses are job 

creators, with the biggest net gain in job growth over the 

past several years coming from firms with 1-4 employees. 

SB 1583, requested during the 2016 short session by Governor 

Kate Brown, expands the authority of the Secretary 

of State's Office of Small Business Assistance. The bill was 

amended, passed and signed into law with the League's 

support. The office originally worked to facilitate interactions 

between businesses and state executive branch 

agencies, boards and commissions. Under the provisions of 

the bill, the Office of Small Business Assistance will also help 

facilitate interactions between small businesses and local 

governments, and assist in resolving issues that arise in the 

administrative, regulatory or enforcement functions of local 

government with respect to small business. 

The bill allows the office to assist local government, as well 

as small businesses and nonprofit organizations, with 100 

or fewer employees that are or will be located in Oregon. 

The bill also allows the office to provide assistance to small 

businesses and nonprofits on any aspect of starting, operating 

or winding down a business. 

Contact Ruth Miles, the Small Business Advocate, for more 

information: 

• Email: Business.SOS@state.or.us 

• Phone: 1-844-469-5512 

• Online: http://sos.oregon.gov/BusinessSOS 



Tourism: A Key Driver in Oregon’s Growing Economy 

After a successful 2014-15 Seven Wonders of Oregon campaign, 

Travel Oregon, a state agency created by the Legislature in 

2003 to strengthen the economic impacts of the state’s tourism 

industry, recently launched a new campaign, entitled “We Like 

it Here. You Might Too.” 

To find information on the campaign, visit www.youmightlikeoregon.com. 

The new campaign focuses on unique and off-thebeaten-path 

resources and recommendations in Oregon. 

Cities can get the “We Like it Here” marketing toolkit at: 

industry.traveloregon.com/industry-resources/toolkits. 

Cities can subscribe to the state’s Travel Oregon newsletter to 

learn of partnership opportunities, events and research updates 

at: industry.traveloregon.com/contact. 

• Tourism is now a $10.6 billion industry in Oregon. 

• Tourism generates more than 105,000 jobs in Oregon. 

• The gross domestic product of the travel industry was 

$4.0 billion in 2014. Overall, the travel industry is one 

of the three largest export-oriented industries in rural 

Oregon counties (with agriculture/food processing and 

logging/wood products). 

• In 2013, for every $1 invested in Travel Oregon’s advertising 

campaigns, $237 in visitor spending and $11 in tax 

revenue was generated. 

• 76 percent of all overnight travel spending is from out-ofstate 

or international visitors. 

Primary out-of-state visitors are from Washington, 

Idaho and California. 

Primary international visitors are from Canada, China, 

Japan, Australia/New Zealand, Germany and the UK. 

• State lodging taxes generate more than $17 million 

each year. 

• Local government lodging taxes generate more than 

$135 million each year (85 cities have a local lodging tax 

with rates ranging from 2 to 13.5 percent). 

HB 4146 – Lodging Tax Increase Passes 

This 2016 bill increases the state lodging tax from 1 percent 

to 1.8 percent starting July 1, 2016. Tax revenues will continue 

to be used to promote tourism throughout the state. The 

bill, however, requires distribution of 30 percent back to local 

communities by dedicating 20 percent to regional cooperative 

tourism programs and 10 percent to fund a competitive 

matching grant program. The remaining tax revenue funds 

Travel Oregon. The state tax will be reduced to 1.5 percent 

starting July 1, 2020. 



Oregon RAIN Programs Help Foster 

Entrepreneurship, Innovation 

Small startups flourish with accelerators’ 

mentorship, funding support and other resources 

By Melody Finnemore 

As the co-founder of a startup company that developed 

a palm-sized device to quickly test drugs and environmental 

toxins, Matt Beaudet knew he could use some 

mentorship and support within Oregon’s competitive biotech 

sector. Beaudet, CEO of NemaMetrix Inc., said the Regional 

Accelerator & Innovation Network (RAIN) in Eugene has 

been essential to his company’s success. 

Founded in 2011, NemaMetrix began its journey at Eugene’s 

FertiLab Thinkubator, an independent nonprofit focused on 

economic development through innovation and entrepreneurship. 

With support from the Oregon Nanoscience and 

Microtechnologies Institute (ONAMI) and the Oregon Translational 

Research and Development Institute (OTRADI), 

NemaMetrix participated in the Eugene RAIN accelerator 

and operated its lab space within FertiLab. 

“The mentors and advisors I had at FertiLab helped get me 

ready for the RAIN accelerator,” Beaudet said. “You can 

have a conversation with someone who is knowledgeable and 

they will give you immediate feedback on how they view you, 

and that is critical because it does give you an opportunity to 

look at how to change the company to grow. A mentor also 

provides that feedback, but they are there week after week to 

continue that conversation and provide new feedback.” 

NemaMetrix’s participation in the RAIN accelerator was crucial 

to its ability to raise $1 million in its seed round of investment 

funding. The funding is helping the company launch its 

ScreenChip System, attract customers, build a larger lab and 

grow its staff, Beaudet said. 

“One of the things the accelerator does is help you hone your 

methods and make sure your pitch is perfect, and that means 

not only what you say but how you say it and who you say it 

to,” he said. 

Cities, Counties Encouraged to Explore 

Public-Private Funding Partnerships 

RAIN is an Oregon consortium of government, higher education 

and businesses created to advance the formation of 

high-growth, innovative startup companies throughout the 

southern Willamette Valley. Established by former Governor 

John Kitzhaber and funded by the state Legislature, RAIN is 

a business incubator and accelerator program that is based in 

Eugene and Corvallis. 

The Eugene RAIN Accelerator is managed as a virtual 

nonprofit by the city of Eugene, the Eugene Area Chamber of 

Commerce and the University of Oregon. Established about 

two years ago, Eugene RAIN offers its 12-week program twice 

a year. 

The OSU Advantage Accelerator (RAIN Corvallis) is about 

three years old and is a unique, hybrid accelerator incubator 

program. Typically, business accelerators help entrepreneurs 

develop an idea that meets a market demand or provides 

a solution for a market. A business accelerator takes that concept 

and creates strategies to develop it more quickly and with 

more stability so it has a greater chance of success. 

The two RAIN accelerators operate differently from each 

other but have the same goals, said Caroline Cummings, a 

venture catalyst with Oregon RAIN. 

“Starting a business alone is never a good idea, so they help 

businesses succeed by giving them access to like-minded individuals,” 

she said. “Most business owners are busy working in 

their business and they don’t spend enough time working 

their business, so the accelerator helps them do both.” 

Cummings noted that both programs are strongly supported 

by the cities that host them. City leaders in Eugene and 

Corvallis recognized that while recruiting companies and 

retaining them are essential factors in economic development, 

a third factor—innovation and entrepreneurship—is just as 

important. 

“The cities came together and asked, ‘What can we do to 

support entrepreneurship and innovation?’” she said. “And 

the beauty of the model is that the cities recognized that it’s a 

public-private partnership.” 

An example is the FertiLab, the Eugene nonprofit that has 

helped NemaMetrix, among other startups. FertiLab offers 

two programs, one of which is a five-week pre-accelerator 

program that includes one-on-one mentoring sessions where 

mentors help the startup leaders develop a list of next steps. 

The other program runs over several months and provides access 

to mentors, capital and resources that help entrepreneurs 

scale their venture more quickly and create jobs. 

FertiLab also provides low-cost, physical space in its Eugene 

and Springfield locations for startup companies. The buildings 

offer office and meeting space, coworking areas, and 


(Left) NemaMetrix, Inc. creates devices to quickly test drugs and environmental toxins; (right) Great Life by Lucinda products can 

be found in local Whole Foods stores. 

educational and networking events for members. The Eugene 

FertiLab also provides a fully outfitted biotech lab and an analytic 

chemistry lab for startups in the brew and wine industries. 

Cummings said the pre-accelerator and accelerator programs 

are invaluable because they allow entrepreneurs to conduct 

their daily business while not only having access to mentors and 

resources, but also holding them accountable for carrying out 

the strategies they have developed through the programs. It 

greatly reduces their chance of failure, increases their opportunities 

for positive public exposure and enhances their ability to 

expand their workforce. 

“These are the job creators of the future,” she said. 

Referring to a study by the Kauffman Foundation, Cummings 

noted that from the late 1980s through 2004, startup firms under 

five years old were responsible for nearly all of the country’s 

net new job creation and about 20 percent of gross job creation. 

However, the Great Recession hampered that growth, and the 

rate of new startups has fallen, a decline that could negatively 

impact America’s economic recovery if it is not reversed. It 

is crucial for cities, counties and state legislators to support 

startups through business incubators, accelerators, mentoring 

programs, angel investment funds, grants and tax incentives, 

among other measures, Cummings said. 

Oregon RAIN obtained $2 million during the last legislative 

session to continue supporting entrepreneurs and their communities. 

“We have a model and we want to share it, and those cities 

just need a little bit of money,” she said, adding anywhere from 

$10,000 to $50,000 can be sufficient and cities and counties 

can partner with other nearby communities on the investment. 

Potential funding sources for municipalities include economic 

development grants from the state and federal government 

and charitable foundations such as the Ford Family Foundation. 

Cummings encouraged cities and counties to seek private 

funding as well, such as community development funds from 

banks or businesses that are already well established and want 

to support local startups. 

Angel investor conferences are another potential source, she 

said, noting last year’s Willamette Angel Conference generated 

$1 million in investment for startups participating in the oneday 

event. The accelerator process vets startups thoroughly, 


RAIN By the Numbers 

RAIN EUGENE ACCELERATOR: 

• Graduated Companies: 25 

• Jobs: 57.75 FTEs 

• Revenue: $873,511 

• Funding (grants/equity/debt): $4,795,000 

• Students involved: 603 

• Companies assisted: 45 

RAIN CORVALLIS ACCELERATOR: 

(also called OSU Advantage Accelerator) 

• Graduated Companies (still alive): 24 

• Jobs: 72 FTEs 

• Revenue: 2,264,466 


• Students involved: 2,928 


ACCELERATOR TOTALS: 

• Graduated Companies: 49 


• Revenue: $3,137,977 


• Students involved: 3,531 


RAIN TOTALS (includes Venture Catalyst's outreach): 

(including Lane, Linn, Benton and Lincoln Counties) 

• Companies Assisted: 92 


• Revenue: $3,354,022 


This data is cumulative since they entered the accelerator 

and is self-reported by the startup companies. The data is 

reported up through March 2016. 



Oregon RAIN Programs (continued) 

“City leaders in Eugene and Corvallis recognized that while 

recruiting companies and retaining them are essential 

factors in economic development, a third factor—innovation 

and entrepreneurship—is just as important. 

” 

thus streamlining the selection process for angel investors, 

Cummings added. 

Rural, Coastal Areas Targeted for Participation 

in Accelerators 

A new investment fund managed by Elevate Capital will 

provide another $10 million for startups, $3 million of which 

is designated for Linn, Benton, Lane and Lincoln counties. 

In addition, Oregon RAIN recently launched pre-accelerator 

programs in Lincoln County and is working with its economic 

development group to identify budding entrepreneurs with 

promising enterprises. 

One of them is Bob Barter, a retired electronic engineer who 

moved to the community of Tidewater in Lincoln County, 

bought a farm and established a company called Bee Certain. 

Bee Certain designs, manufactures and sells beehive monitoring 

systems that help beekeepers track the temperature, 

humidity and honey reserves in their hives during the winter. 

Cummings referred him to the OSU Advantage Accelerator 

to build on his success. 

Another burgeoning entrepreneur is Lucinda Whitacre, 

founder and CEO of Great Life by Lucinda, a natural foods 

business that is based in Depoe Bay. Whitacre also is participating 

in the OSU Advantage Accelerator, and at press time 

was preparing to make a presentation during the Willamette 

Angel Conference in May. Great Life by Lucinda products 

already can be found in select Whole Foods stores, and 

Whitacre recently crafted an agreement to distribute them in 

Fred Meyer stores as well. 

“I just started meeting with a couple of advisors, and they’ve 

been helping me with negotiations for future projects,” she 

said. “They know the ropes much better than I do, and they 

are teaching me how to be more efficient so I don’t work 

myself into the ground.” 

Whitacre said she also appreciates the classes she is able to 

take through the accelerator along with the opportunity to 

network with others in the food industry. “And Caroline is so 

supportive and so connected. She helps me figure things out, 

and she knows people I would never meet,” she said. 

Cummings said her focus as a venture catalyst for Oregon 

RAIN is to meet with entrepreneurs, listen to their individual 

needs and connect them with the right resources. Along 

with helping startups succeed in business, her goals include 

ensuring they are able to remain in their respective communities. 

“We want to support these companies in the communities 

they are in because we want them to create jobs and support 

the economies of those communities,” she said. “We’re not a 

big venture capital state at all so that presents a barrier, but, 

pardon the pun, we grow our own.” 

Since their establishment, Oregon’s RAIN programs have 

assisted 92 companies, created more than 180 full-time jobs, 

generated more than $3.3 million in revenue and obtained 

more $12 million in funding. (Please see sidebar on page 21 

for more details.) 

72 

Urban Renewal BY THE NUMBERS 

cities in Oregon have urban 

renewal districts 

$278 billion 

invested through taxes in past 

five years 

Largest urban renewal investments per capita 

$86.41 Roseburg 

$67.17 Wilsonville 

$67.11 Newport 

$62.35 Coburg 

$62.06 Lebanon 

$53.82 Rainier 

$53.79 Portland 

$51.54 Veneta 

$44.47 Astoria 

$43.24 Coos Bay 



Cities Craft Range of Strategies to 

Showcase, Brand Community Identity 

By Melody Finnemore 

City 

City 

of 

of 

Beav 

Bea 

When cities seek to define what makes them unique 

as communities, they turn to people like Anne 

Marie Levis and Bob Parker. Levis and Parker 

specialize in community branding, or helping cities identify 

and leverage the assets that set them apart. 

These assets can range from natural resources and recreational 

opportunities to dominance in particular business 

sectors and redevelopment that makes the community more 

socially and economically attractive. 

Levis, a partner at Funk/Levis & Associates in Eugene, has 

worked with Beaverton, Eugene and Rochester, N.Y., among 

other municipalities and companies seeking to create a signature 

brand. While Beaverton, Eugene and Rochester adopted 

different strategies, they had some common goals, she said. 

In Beaverton’s case, the city wanted to enhance its economic 

development efforts by launching an extensive public outreach 

process. That process included community members, 

business leaders, nonprofit organizations, school district officials 

and others who wanted to help develop a theme of what 

represents Beaverton and makes it unique. 

“They really wanted to be welcoming, friendly, vibrant, responsible 

and athletic,” Levis said, adding hundreds of surveys 

were sent out as part of the public outreach process to ensure 

these descriptions resonated with the community. 

Beaverton updated its logo by adopting a new one that represents 

an iconic fountain downtown and the city’s diversity and 

features the tagline “The Best of Oregon.” 

“They wanted people to see that Beaverton offers a worldclass 

quality of life, and it creates a nexus of the best in 

Oregon,” Levis said, adding the logo presents a unifying image 

City of Beaverton logo before redesign (left) and after, with tagline 

Emily Tantare 

Office of the Mayor, City of Beaverton 

4755 SW Griffith Drive • Beaverton, OR 97076 

t: 503.526.2376 

Emily Tantare 

www.beavertonoregon.gov 

Office of the Mayor, City of Beaverton 

4755 SW Griffith Drive • Beaverton, OR 97076 

t: 503.526.2376 


of not only what the city is now but what it wants to become 

in the future. 

Eugene also is working with Levis to update its logo, and its 

goal is for the logo to represent each of the city’s departments. 

In addition, Levis is helping its Planning & Development Department 

with a public outreach campaign to educate people 

about what the department does and how it is working to craft 

a plan for future growth. 

4755 SW Griffith Drive 

Beaverton, OR 97076 

503.526.2376 4755 SW Griffith Drive 



503.526.2376 


Dear John, 

Lorem ipsum Dear John, dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet 

dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit 

lobortis Lorem nisl ut ipsum aliquip dolor ex ea sit commodo amet, consectetuer consequat. adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet 

dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit 

Duis autem lobortis vel nisl eum ut iriure aliquip dolor ex in ea hendrerit commodo in consequat. 

vulputate velit esse molestie consequat, vel illum dolore eu feugiat 

nulla facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis 

dolore te Duis feugait autem nulla vel eum facilisi. iriure Lorem dolor ipsum in hendrerit dolor sit in amet, vulputate consectetuer velit esse adipiscing molestie elit, consequat, sed diam vel nonummy illum dolore nibh eu feugiat 

euismod nulla tincidunt facilisis ut at laoreet vero eros dolore et accumsan magna aliquam et iusto erat odio volutpat. dignissim qui blandit praesent luptatum zzril delenit augue duis 

dolore te feugait nulla facilisi. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh 

Ut wisi euismod enim ad minim tincidunt veniam, ut laoreet quis nostrud dolore magna exerci aliquam tation ullamcorper erat volutpat. suscipit lobortis nisl ut aliquip ex ea commodo 

consequat. Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu 

feugiat Ut nulla wisi facilisis enim ad at minim vero eros veniam, et accumsan quis nostrud et iusto exerci odio tation dignissim ullamcorper qui blandit suscipit praesent lobortis luptatum nisl ut zzril aliquip delenit ex ea commodo 

augue duis consequat. dolore Duis te feugait autem nulla vel eum facilisi. iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu 

feugiat nulla facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit 

Nam liber augue tempor duis cum dolore soluta te feugait nobis nulla eleifend facilisi. option congue nihil imperdiet doming id quod mazim placerat facer 

possim assum. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt 

ut laoreet Nam dolore liber magna tempor aliquam cum soluta erat nobis volutpat. eleifend Ut wisi option enim congue ad minim nihil veniam, imperdiet quis doming nostrud id exerci quod tation mazim ullamcorper 

placerat facer 

suscipit possim lobortis assum. nisl ut Lorem aliquip ipsum ex ea dolor commodo sit amet, consequat. consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt 

ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper 

Duis autem suscipit vel lobortis eum iriure nisl dolor ut aliquip in hendrerit ex ea commodo in vulputate consequat. velit esse molestie consequat, vel illum dolore eu feugiat 

nulla facilisis. 

Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat 

Sincerely, nulla facilisis. 

Denny Doyle 

Mayor Sincerely, 

Beaverton, Denny Oregon Doyle 

Mayor 

Beaverton, Oregon 

City of Beaverton 

4755 SW Griffith Drive 

PO Box City 4755of Beaverton 

Beaverton, 4755 OR SW 97076 Griffith Drive 

“It’s really PO Box a 4755 more grassroots campaign of connecting with the 


community. We sort of assumed that people understood the 

value of planning and development, but they really don’t,” she 

said. “It’s not about growth or no growth, it’s about planning 

and where we’d like to see our city go in the future.” 

Emily Emily Tantare 

Rochester wanted 

Office Office of the of the Mayor, Mayor, City City of 

its of Beaverton 

branding campaign to attract young, 

4755 4755 SW Emily SW Griffith Emily Griffith Drive Tantare Drive • • Beaverton, OR OR 97076 97076 

t: t: 503.526.2376 

Office Office the the Mayor, Mayor, City City of Beaverton 


4755 4755 SW SW Griffith Griffith Drive Drive • • Beaverton, OR OR 97076 97076 

t: t: 503.526.2376 

creative professionals as the Mayo Clinic sought to hire new 


people. The downtown core had lost Stationery its package identity as more 

Stationery package 

people moved to the suburbs, and city leaders wanted their 

new logo to help create a better perception of it. 

4755 4755 SW SW Griffith Drive Drive 

Beaverton, OR OR 97076 97076 

4755 4755 SW SW Griffith Drive Drive 

503.526.2376 

OR 97076 



503.526.2376 



Origi 

red 

O 

l 


Dear Dear John, John, 

Dear Dear John, John, 

Lorem ipsum ipsum dolor dolor sit sit amet, amet, consectetuer adipiscing elit, elit, sed sed diam diam nonummy nibh nibh euismod tincidunt ut ut laoreet 

June 2016 | LOCAL FOCUS 23 

dolore erat Ut wisi enim ad quis exerci tation Lorem 

magna 

ipsum ipsum 

aliquam 

dolor dolor sit 

erat 

sit amet, 

volutpat. 

amet, consectetuer 

Ut wisi enim adipiscing 

ad minim 

elit, elit, 

veniam, 

sed sed diam diam 

quis nonummy 

nostrud 

nibh 

exerci 

nibh tation 

euismod 

ullamcorper tincidunt ut 

suscipit 

ut laoreet 

lobortis nisl nisl ut ut aliquip ex ex ea ea erat 

commodo dolore magna aliquam erat volutpat. 

consequat. 

Ut Ut wisi wisi enim enim ad ad minim veniam, quis quis nostrud exerci exerci tation tation ullamcorper suscipit 

lobortis nisl nisl ut ut aliquip ex ex ea ea commodo consequat. 

Duis Duis autem vel vel eum eum iriure iriure dolor dolor in in hendrerit in in vulputate velit velit esse esse molestie consequat, vel vel illum illum dolore eu feugiat 

nulla nulla facilisis at at vero vero eros eros et et accumsan et et iusto iusto odio odio dignissim qui qui blandit praesent luptatum zzril zzril delenit augue duis duis

Community Branding (continued) 

Clockwise from left: The city of Echo's logo includes the image of Echo Koontz, daughter of the town's founder; Gold Hill is 

constructing a whitewater rapids park on the Rogue River; Estacada's logo is part of the city's new branding campaign highlighting 

the Clackamas River and nearby natural resources. 

“They really wanted something that was more tangible. They 

felt downtown wasn’t really relatable and felt sort of staid. 

They wanted a brand people could connect with more and be 

proud of,” Levis said. 

With “The Place to Be” as its tagline, Rochester developed 

different icons that represent activities people enjoy, including 

shopping, dining and entertainment. Levis also helped 

the city with marketing plans for four key areas identified as 

essential to a sophisticated urban experience. 

“They really are still going after the same target audiences, 

and those are downtown employees, the after-five crowd, 

families and visitors,” she said. 

Parker, AICP, co-director of the Community Service Center 

and program director at the Community Planning Workshop 

at the University of Oregon, said a community’s assets also 

include production factors such as workforce, infrastructure 

to support businesses, availability of capital, and resources— 

natural and human—that create products. 

As city leaders consider what makes their community unique, 

it’s essential to inventory all assets, he said, adding his department 

conducts community readiness assessments to help 

municipalities determine economic development strategies. 

As an example, Parker worked with the Oregon Wave Energy 

Trust to examine Coos County’s readiness for the development 

of wave energy in the region. Considerations included 

whether the region has shipyards that can service wave energy 

equipment on land, divers who can service them in the water 

and training programs necessary to support the sector. 

“The whole notion of looking at assets can be relative to looking 

at what a community wants to accomplish,” he said. “It’s 

also important for cities to realize they need to plan at least 10 

years into the future because things don’t happen overnight.” 

While data can be helpful as city leaders consider matters of 

community identity, branding and economic development, 

the answers don’t always lie in the data. Parker noted that 

conversations with community members often provide a better 

indicator and richer information. 

“It really boils down to finding out what matters to your community. 

One of the things that has changed during my career 

is there is so much information available to all of us that it’s 

almost overwhelming, so it’s important to ask community 

members what matters to them,” he said. 

City leaders from throughout Oregon recently shared their 

experiences with community identity and branding. 

Art, History Inspire Branding Campaign 

for Echo 

The Oregon Trail and Fort Henrietta were the images that 

represented Echo until the Oregon Arts Commission helped 

revamp the city’s brand through its Arts Build Communities 

program. A representative from the program suggested the 

branding campaign center around the image of Echo Koontz, 

whose father founded the town. 

With a grant from the Arts Build Communities program, the 

city hired a Salem consulting company to develop several logo 

designs for the city council and selection committee members 

to choose from. Today the image can be seen on everything 

from official stationary to the town’s bike racks, said City 

Manager Diane Berry. 


“ 

For 

Echo received federal stimulus money to improve its downtown, 

which provided an opportunity to further implement 

the branding campaign. The city added entry signs and 

installed a raised planter and public art display, among other 

enhancements. The first piece of public art was installed in 

March. 

As part of the visioning process, Arts Build Communities also 

had recommended a horse as part of the branding theme. The 

horse image has been used for the railing on the Stanfield/ 

Echo overpass and on city benches. 

Echo’s improvements have been supported significantly by 

Lloyd and Lois Piercy, who have renovated several historic 

structures, including the Koontz Building that houses their 

Sno Road Winery, tasting room and event center. The 

couple’s vineyard, winery and accompanying offerings have 

complemented Echo’s branding around art and culture, 

Berry said. 

Echo discovered a big piece of what made it unique in the 

mid-1980s when Fort Henrietta was identified and archeology 

classes from Portland began traveling to Echo to learn about 

its history firsthand. City leaders then sought grant funding to 

brand the town’s historical identity, Berry said. 

“Since then it’s just kind of skyrocketed. We’ve built one 

place after another based on the culture and history of the 

area, so it’s been exciting to see everything come together,” 

she said. 

Estacada Focuses Branding on Natural 

Resources, Beauty 

With a history of logos that didn’t really have a common 

theme, Estacada launched its most recent branding campaign 

with an eye toward the Clackamas River and other nearby 

natural resources, said Mayor Brent Dodrill. 

It kicked off the campaign in March with a public meeting, in 

which the city introduced the language and images created 

during a year-long development process. During the meeting, 

city officials also announced a grant program to encourage 

local businesses and community groups to use the brand to 

promote Estacada’s reputation as a creative, outdoor recreation 

community. 

“We want to build on that so people stop in Estacada for a 

little while before they head up the river, which is actually 

very close to downtown but a lot of people don’t realize it,” 

Dodrill said. 


our community, this could potentially be an 

economic goldmine. We want to see the recreational 

economics affect the community’s economics. 

The branding campaign includes a “value proposition” that 

reads, in part: Grab two fat tires or one big paddle. Cycle, pad- 

” 

dle, float, ramble or climb. Immerse yourself in trees, sky, water; 

summer’s greens and winter’s whites. Or wander through town to 

discover our history in murals, explore galleries and stop for a local 

craft beer. This is Estacada’s value proposition. This is Estacada: 

unexpected, untamed, unforgettable. 

While not everyone was wild about the city’s new logo, 

Dodrill said a compromise was reached in which the logo 

was tweaked slightly based on input from the public but still 

reflects the fresh, artistic look city leaders wanted. 

“I think we’re in a good place now, and we’re looking forward 

to this carrying us forward to our next stage as a community,” 

he said, noting the branding campaign accompanies a recently 

completed streetscape project and improvements to pedestrian 

facilities in the downtown area. “It was just a great time 

to have this brand that would help move these things ahead in 

our messaging.” 

Whitewater Rapids Park Propels Gold Hill 

Branding 

Outdoor recreation is a major asset for Gold Hill as well, and 

the city is building on the success of its skate park, walking 

trails and sports fields with the construction of a $3 million 

whitewater rapids park. 

“In 2012 we did a strategic plan and decided the best economic 

development opportunity for our community is tied to the 

river because we have limited land, limited resources and a 

very limited downtown,” said City Manager Rick Hohnbaum. 

Initial work has already begun on the Gold Hill Whitewater 

Park, which will be located where the Rogue River Greenway 

bicycle bridge crosses the Rogue River. Slated for completion 

in September 2017, the park will feature an Olympic-class slalom 

course and two large “play waves” for surfing and freestyle 

competition. 

One of the project’s primary goals is to reduce the risk of 

boater entrapment and drowning at a spot known as the Mugging 

Rock. And previously navigable by only expert boaters 

in kayaks and rafts, the whitewater park will open that stretch 

of river to enthusiasts who use inner tubes, standup paddleboards 

and surfboards. 

“This proposed whitewater park is blessed with having the 

elevation changes that most parks would spend hundreds of 

millions of dollars to install,” Hohnbaum said. 

City leaders expect the park to attract plenty of spectators as 

well. An existing access road will become an access trail with 

viewing areas, and at least two of the viewing areas will 




Clockwise from left: The artists in the city of Joseph played a key role in renovating Main Street; the new logo for Grants Pass 

is part of the city's comprehensive brand style guide; the Lakeside Brewfest brings in revenue for the city with no tax base; 

preserving the city of Manzanita's "village atmosphere" is written into their comprehensive plan; the city of Tigard's brand 

standards guide ensures a cohesive look for all city materials. 

be ADA accessible. Gold Hill expects to attract more cyclists 

to the Rogue River Greenway, which one day will connect 

Grants Pass with Ashland. 

“For our community, this could potentially be an economic 

goldmine,” Hohnbaum said. “We want to see the recreational 

economics affect the community’s economics.” 

Gold Hill’s community assets also include its rich Native 

American history. The park will feature a First Nations 

Monument because nearby Ti’lomikh Falls was the site of the 

Takelma (“People of the River”) Salmon Ceremony, the largest 

Native American gathering in southern Oregon. 

Transparency, Public Input Essential to 

Grants Pass Process 

As Grants Pass initiated its branding campaign, Jon Bowen researched 

how other cities across the country were carrying out 

similar efforts. During his research, he found a treasure trove 

of information that proved to be invaluable as he developed a 

comprehensive brand style guide for the city. 

Bowen, who heads tourism marketing for Grants Pass, said he 

and city leaders learned several lessons during the branding 

campaign. 

“One of the key things about branding a city is that you are 

branding a community and its people, not a product,” he said. 

“It’s really important that the process be transparent, public, 

thorough and well-documented. It needs to really capture the 

character of the city.” 

During the process, community members and municipal 

leaders alike knew that the city’s identity is closely tied to the 

Rogue River. “It runs right through the heart of our downtown 

and is innate in the spirit of who we are,” Bowen said, 

adding it inspired the tagline “Live Rogue.” 

The tagline has generated its share of debate and the branding 

strategy itself has encountered some stops and starts, 

including a pause while the city and county worked on a joint 

economic development plan. Bowen said it has been essential 

to stay focused on the end goal. 

“Most people think branding is just the logo and the tagline, 

but a true, well-executed branding is a strategy that defines 

who you are in a realistic sense,” he said. “It also includes an 

aspirational goal of, ‘Where do we want to go in the future, 

and how do we want people to see us?’” 

Joseph’s Community Members Build on 

City’s Reputation 

Joseph was a well-established community of artists and other 

creative professionals when Dennis Sands rode through town 

during a Cycle Oregon trek and later returned to buy a home 

there. 

Now mayor of Joseph, Sands said the artists in the community 

played a key role in renovating and improving Main Street 

during the late 1990s. “Once Main Street got started and was 

redone, that really kick-started our destination as a tourist 

town,” he said. 

Sands recalled attending a fundraiser for Joseph’s new library 

and seeing his local postmaster sing a blues song during the 

event. “I saw him in the post office a couple days later and 

I had to compliment him. I’m just constantly amazed at the 

talent in this community,” he said. 

Community involvement plays a significant role in Joseph’s 

brand and identity in other ways as well, including town hall 

meetings and public brainstorming sessions about how to further 

enhance Main Street. A group of citizens has launched 

an initiative to raise $175,000 to purchase new playground 



equipment for the town. In addition, Sands is involved in 

discussions about remodeling Joseph’s community center. 

Like other Oregon municipalities, Joseph capitalizes on its 

geographic location and promotes its unique connection 

to history, recreation and agriculture. It welcomes cyclists, 

motorcycle enthusiasts, photographers, horse lovers, hunters, 

people who like to fish and others to enjoy its natural surroundings. 

A series of festivals and special events throughout 

the year also are among Joseph’s community assets. 

Festival Helps Lakeside Generate Funding to 

Pay for Improvements 

The coastal city of Lakeside (pop. 1.705) may not have a tax 

base, but it does have a unique location, a manmade beach— 

complete with palm trees—and an annual brewfest that is 

proving to be a respectable source of revenue for the 

community. 

“One of the unique things about Lakeside is that we’re on 

the (Tenmile) lakes instead of the ocean,” said Curtis Kelling, 

Lakeside’s city recorder/manager. Another asset was a parcel 

of land that had formerly been a lumber mill and was situated 

between a county park and the Osprey Point RV Resort. 

With an economic development plan crafted by the University 

Oregon’s business school and funded by the Oregon 

Sports Authority, Lakeside embarked on a public-private plan 

to build the beach. Support for the project included $50,000 

from a community member who wanted to pay for the palm 

trees, as well as grant funding and in-kind donations from 

contractors who worked on the project. 

Contractors buried the mill area in sand that the city owns 

because of the nearby dunes. Floors from the mill were 

repurposed as an event pad. And, with water and power 

systems added, the inaugural Lakeside Brewfest took place in 

October 2014. 

“We actually cleared $12,000 from our brewfest last year,” 

Kelling said, adding half was put into Lakeside’s general fund 

and the other half into a beach maintenance fund. “The city 

had no money and it really was the private sector that got this 

project going. It became a unique public-private partnership.” 

Lakeside is now working with Coos County on a master plan 

for the entire park, and is seeking a grant from the Oregon 

Parks and Recreation Department to pay for enhancements. 

In addition, a landscape architect is adding historical touches 

around the event pad area. 

Scale is Key to Retaining Village Feel for 

Manzanita 

Manzanita has a reputation for being a quaint coastal town 

where families come to enjoy vacation time together during 

the high season, and then leave local residents to peace and 

quiet the rest of the year. And that is just how Mayor Garry 

Bullard wants it to stay. 

“That idea of preserving the village atmosphere of our town is 

written into our comprehensive plan. That is the number 

one priority of our community as a result of a survey that was 

taken well over 10 years ago,” he said. 


Noting that the Manzanita Visitor Center logged tourists from 

35 different countries last year, Bullard acknowledged that the 

influx each year is vitally important for the city economically. 

Of the approximately 1,200 housing units in the city, about 

75 percent are owned by people whose primary residence is 

elsewhere. Manzanita’s year-round population is about 600; 

that grows to several thousand during the summer months. 

“The short-term rental tax is the city’s lifeblood because we 

have one of the lowest property tax rates in the state, so we 

need a way to maintain our streets and other infrastructure to 

handle the tourism,” he said, adding the short-term rental tax 

is nearly four times the property tax value. 

Manzanita does have a limitation on the number of short-term 

rentals eligible for a license, and it does have a waiting list of 

people who want the licenses. 

“That was the result of a long-term compromise within the 

city. Many people didn’t want any short-term rentals, but of 

course that’s not possible,” Bullard said. “We know you can’t 

stop growth within the city, especially when you’re a tourist 

destination, but you can do your best to keep it in scale.” 

Balance Between Uniformity, Flexibility at 

Center of Tigard Branding 

For larger municipalities such as Tigard, it can be a challenge 

to ensure that each city department is consistently using the 

logo, tagline and other branding materials that create a uniform 

identity for the community. 

With a new logo and tagline, “A Place to Call Home,” Tigard 

has implemented a branding campaign that strives for that 

uniformity while also allowing for flexibility so the departments 

can retain their individual identity, said Liz Newton, 

assistant city manager. 

“Branding is a bit of an overused word, but we want people to 

see a unified and cohesive look to the materials that go out,” 

she said. “The good thing about branding is it means you 

don’t have to slap the city’s logo on everything because there 

is a uniform look to everything.” 

For example, the corporate look that is appropriate for a PowerPoint 

presentation for the city council is not the right look 

for a summer reading program designed to appeal to children. 

However, incorporating the same colors, font style and other 

brand elements can create a cohesive look and feel, she said. 

“I would emphasize as key the ability to use the brand and 

image you are trying to project and vary it for your target audience,” 

Newton said. “I think you benefit from having very 

clear standards you can apply, but they’re not so rigid that you 

have to use the same thing every time.” 

Newton credited her design staff with creating a slate of 

branding materials that successfully communicate Tigard’s 

identity, and she recommended other cities invest in staff experienced 

in branding, marketing and design. She also noted 

that Tigard has copyrighted its brand so that only city entities 

can use it. 

Ms. Finnemore is a Portland-area freelance writer. Contact her at 

precisionpdx@comcast.net. 


Changes to Recreational 

Use Immunity Law – 

How Will Cities Navigate 

These Unfamiliar Waters? 

A 

dad and his daughter visit a city park, where they both 

begin swinging on the large swing set. Suddenly an “Shook” 

fails and the man falls to the ground and breaks 

his arm. The man later sues the city and names the park 

maintenance employee as part of his suit. Prior to a recent 

Oregon Supreme Court ruling (Johnson v. Gibson), the city 

could stop this type of suit—having it dismissed—by asserting 

that recreational use immunity protected both employee and 

the city from being sued. 

That protection exists no longer. 

Kirk Mylander, CIS General 

Counsel 

This change to recreational use 

immunity came about after the 

Oregon Supreme Court held 

that individual government 

employees are not “owners” 

under the Oregon Public Use 

of Lands Act—and are no longer 

protected by recreational 

use immunity. As a result, CIS 

expects to see a sharp increase 

in lawsuits filed directly against 

individual city employees who 

operate, maintain or repair 

recreational areas. City leaders 

from all over Oregon are looking 

to CIS for trusted advice 

and expert legal counsel on 

what to do next. 

According to CIS General Counsel Kirk Mylander, even after 

Johnson v. Gibson, recreational immunity technically still 

applies to cities. However, it no longer applies to their 

employees. 

Using the swing accident example, recreational immunity 

would stop the lawsuit from going forward against the city, 

but recreational immunity would have no effect on the case 

against the employee. And who pays for the suit against the 

city employee? The city. Therefore, the outcome is just like 

the city being sued directly, as if recreational use immunity 

never existed. Of course, cities that are insured through CIS 

will continue to have their defense costs covered by CIS. 

Because recreational use immunity is no longer in play, plaintiffs 

can move forward with lawsuits, but will still have the 

legal burden of proving that a city employee was negligent, 

and that the employee’s negligence is what caused the injury 

to the plaintiff. The defending city, and its employee, will 

then have the opportunity to bring forward evidence showing 

that they were not negligent, acted reasonably, and did not 

cause the person’s injury. 

With this change to the law, it’s absolutely critical for each 

city in Oregon to put maintenance plans in place. The plans 

demonstrate that recreational equipment is regularly inspected 

and maintained. As part of the maintenance program, it’s 

important to document routine inspections—when a piece of 

equipment is found to be in need of repair, and the steps city 

staff took to remove the equipment from service. It’s also important 

to document when the replacement part was ordered. 

Cities that can prove that their park equipment is checked 

and maintained on a regular schedule will be in a much 


“ 

Who pays for the suit against the city employee? 

The city. Therefore, the outcome is just like the city 

being sued directly, as if recreational use immunity 

never existed. 

” 

stronger position to defend lawsuits. 

And for cities that have 

no documentation at all? They 

are at much greater risk and may 

find themselves ill-prepared to 

win these types of cases. 

Again, being proactive can protect 

cities from costly lawsuits. 

In the case of the failed S-hook 

that sent the man tumbling from 

the swing? According to CIS 

Claims Manager Jim McWilliams, 

those hooks should be on 

a two- to five-year replacement 

schedule. 

Jim McWilliams, CIS Claims 

Manager 

“With the change in the law, it’s 

more critical than ever before that 

cities make routine maintenance a priority,” said McWilliams. 

“It needs to be on a schedule and it must be documented.” 

While the loss of recreational immunity puts cities at higher 

risk of costly lawsuits, CIS is working diligently with the 

League of Oregon Cities—as well as with the Association of 

Oregon Counties—on legislation to address the issue. 

CIS members can learn more about the changes in recreation 

use immunity through two recent webinars—one answering 

frequently asked questions about the subject and the other using 

Enterprise Risk Management (ERM) to work through the 

challenges of responding. Check out the webinars in the CIS 

Learning Center at learn.cisoregon.org. 

CIS has also created an online recreational immunity Q&A 

based on questions generated during the webinars, which can 

be accessed at www.cisoregon.org/RecImmunity. If you have additional 

questions, please email Kirk Mylander at kmylander@ 

cisoregon.org. 

Recent CIS webinar leads to more 

questions 

Recently, CIS had two webinars about changes to the law 

and how to address recreational risks by using enterprise 

risk management techniques. As part of those trainings, 

questions regarding “discretionary immunity” also came 

up. Specifically, does discretionary immunity apply if a 

planned course of action isn't approved by council? CIS 

General Counsel Kirk Mylander shared that discretionary 

immunity applies most clearly to a course of action, such 

as a street or park maintenance plan, when a governing 

body votes to approve or adopt the plan. 

However, he added, discretionary immunity can also 

apply to policy decisions made by a department head— 

especially when there’s documented evidence that the 

department head is specifically authorized to make those 

policy decisions. 

Mylander went on to suggest that if putting together a 

park maintenance plan is within the job duties of a public 

works director, then discretionary immunity should apply 

to any claim that alleges that the city should have adopted 

a different maintenance plan with different priorities. 

It’s understandable that some elected officials may be 

concerned about the perception of a maintenance plan 

that acknowledges there’s not enough money to perform 

all the maintenance a city would like to get done. Still, 

a deferred maintenance plan could be used to create 

awareness for voters about where maintenance dollars are 

being spent, and demonstrate that additional revenues 

would be put to good use—keeping citizens safe. 

“Policy makers need to be clear about the importance of 

approving deferred maintenance in an actual plan,” said 

Mylander. “I urge city leaders to watch the recorded version 

of CIS’ recent webinar to learn more.” 



29

City News 

UNION 

Refinancing for Big Savings 

The city of Union (pop. 2,150) has refinanced a loan through a 

plan that would increase sewer rates and save the city close to 

$1 million. 

"In the long term, it will be a huge benefit to the city,'' said 

Union Public Works Director Rod McKee, who along with City 

Administrator Sandra Patterson led the push for the refinancing 

project. 

The city is refinancing its repayment of a $2.63 million loan 

it received in 2000 from the U.S. Department of Agriculture 

(USDA) for renovation work on wastewater treatment facilities. 

The loan included an interest rate of 4.5 percent and a 

40-year repayment plan which calls for the city to pay almost 

$143,000 per year to the USDA through 2040. 

Under the refinancing plan, the city received a new 2.85 percent 

loan from Umpqua Bank, which has a branch in Union, 

for the money it still owes the USDA. Umpqua Bank is paying 

the USDA the $2.2 million balance the city owes as part of the 

refinancing agreement. 

The city’s annual loan payments with the refinancing option 

will now be $184,000, allowing it to pay off its loan by 2030. 

Paying off the loan 10 years early would have a major financial 

impact. 

“The city would save nearly $1,000,000 as compared to the 

terms of the original loan,” McKee said. 

The additional $41,000 the city would spend each year in loan 

repayment costs would be generated by an increase in monthly 

sewer rates. The Union City Council on Feb. 8 approved a 

resolution allowing for an increase in sewer rates to be imposed 

if the refinancing plan is finalized. The rate increase would cost 

each residential sewer user $3.75 per month, McKee said. 

The sewer rate increase took effect in April, McKee said. The 

increase was first reflected in the May utility bills. 

The treated effluent from the city’s wastewater treatment plant 

is used for irrigation of the local public golf course during the 

spring, summer and fall. The loan in question funded improvements 

to the wastewater treatment plant and effluent storage 

that allowed utilization of the effluent for irrigation of the golf 

course. 

McKee said the money Union would save from the proposed 

refinancing will improve the city’s financial position in years to 

come for future needed wastewater improvement projects. 

“This is going to give the city flexibility in funding that it would 

not have otherwise had,” he said. 

Sources – La Grande Observer, City of Union 

PRAIRIE CITY 

Lids for Kids 

Last summer, the city recognized just how many local children 

rode their bicycles and skate boards without wearing safety 

helmets, and that many of them came from low-income families 

that couldn’t afford safety helmets. 

“U.S Highway 26 is the main road through Prairie City, and it 

was common to see kids without helmets crossing the highway 

or on the nearby sidewalks, with semi-trucks barreling down 

the road right next to them,” said City Recorder Taci Philbrook. 

With Public Works Director Chris Camarena taking the lead, 

the city council voted to create a free helmet program for 

the children of Prairie City. Little did they know how well it 

would be received by the community. 

Philbrook first checked into some grant options, only to find 

out no funds were immediately available. Community members, 

merchants and city workers created (and participated in) 

a “Lids for Kids” fund raiser to purchase quality helmets for 

bicycling, skate boarding and roller skating. 

Prairie City identified two key objectives for the Lids for Kids 

program. First, they needed the kids to want to wear their 


CITY NEWS 

CORVALLIS 

Renewable Diesel 

After months of testing, tinkering and evaluating, the municipal 

vehicle fleet in Corvallis—a diverse collection of utility 

trucks, emergency response vehicles, street sweepers, transit 

buses and more—will switch over to renewable diesel fuel this 

summer. The switch will apply to about one-third of the city’s 

vehicle pool—roughly 40 vehicles—and is expected to reduce 

the fleet’s greenhouse gas emissions by about 1,000 metric tons 

of carbon dioxide annually. 

The new R-99 renewable diesel fuel is made from vegetable 

oils and animal fats. Previously, the city’s vehicles had used 

a fuel blend containing 50 percent petroleum diesel and 50 

percent renewable diesel, known as R-50. Prior to that, the 

city relied on biodiesel, a well-known fuel type that nonetheless 

contributed to more wear and tear on vehicle systems. By 

contrast, renewable diesel burns cleaner and offers more power 

and better mileage while reducing the fleet’s carbon footprint. 

“In addition to the reduction in carbon emissions, the entire 

community will benefit from a reduction in many pollutants 

that contribute to smog and poor air quality,” said Corvallis 

Sustainability Program Specialist Scott Dybvad. 

The city used about 136,000 gallons of diesel in 2015, and 

fuel usage is on the rise as bus transit usage has increased. 

The cost premium to switch over to renewable diesel averages 

roughly 12 cents per gallon, though that cost is expected 

to come down as more communities and organizations drive 

demand for this new fuel type. 

The switch to R-99 renewable diesel comes after many months 

of testing and evaluation by Fleet Supervisor Bob Fenner. He 

found that, in addition to the power and efficiency savings, 

the new fuel also contributed to a 10 percent reduction in fuel 

system maintenance, as the cleaner-burning R-99 resulted in 

fewer clogged filters and fuel lines. 

Locally, renewable diesel has also been embraced by municipal 

fleets in Eugene and Portland, and the city of San Francisco 

has been using R-99 for nearly 2,000 diesel vehicles in its fleet 

since last summer. 

For more information on how sustainability fits into the mission 

of the city of Corvallis, go to www.corvallisoregon.gov/ 

sustainability. 

Submitted by – City of Corvallis 

helmets, and second, they needed a fund raiser to purchase 

helmets. For the first objective, the city decided that to get 

the kids in the habit of wearing their riding helmets they 

needed to find a way to reward them when they did wear 

them. To this end, the city created coupons for city workers 

to hand out to kids who were seen wearing their helmets. The 

coupons could be used for a large fountain drink from Huffman’s 

Market or a free soft ice cream cone from The Hitchin 

Post Cafe. Public works employees began handing out the 

coupons when they observed a child wearing their helmet. 

Word spread quickly, and the coupons became a very popular 

item with kids in the community. Before long, kids were coming 

to city hall announcing they were wearing their helmets 

so they could get a coupon. Often the children wearing their 

helmets would be in a group, but the children not wearing 

helmets did not receive a coupon. 

Local merchants such as Huffman’s Market and the Roan 

Outwest Coffee Shop competed with the city and the local senior 

center in raising funds for “Lids for Kids.” All fund raisers 

were given donation buckets to set on their counters, making 

it easier for the community to make donations to the program. 

The senior center was recognized by the city for raising the 

most money. 

The funds raised by the community were then handed off to 

Debbie Hueckman of John Day, who purchased bicycle and 

skateboard helmets through the Grant County Safe Communities 

Coalition, which had received a traffic safety grant 

from the Oregon Department of Transportation. The helmets 

arrived in Prairie City during the Christmas holidays. 

“During this past spring break, I looked out my office window 

and saw a group of kids riding bicycles, and some are skateboarding,” 

Philbrook recalled. “Some are wearing their helmets, 

some are not. A boy wearing his bicycle helmet comes 

into city hall asking for safety helmets for his two cousins that 

are here visiting from a neighboring town. As they all ride off, 

I’m feeling very proud of how our community came together 

for this program.” 

Submitted by – City of Prairie City 



31

Legal Briefs 

Another Home Rule Win: 

Cities Can Raise License Fees 

on Certain Utilities Operating 

in Rights of Way 

By Heather Martin 

The Oregon Supreme Court issued its opinion recently 

in NW Natural v. Gresham, holding that ORS 221.450 

does not impose a limit on the license fee that the city 

of Gresham could collect for use of the city rights of way 

and that Gresham had the authority to raise that fee from 5 

percent to 7 percent of gross revenues on private utilities. Although 

the court found that Gresham could collect the 7 percent 

fee from the private utilities, NW Natural and Portland 

General Electric (PGE), it did not have authority to impose 

a higher tax on another governmental entity, the Rockwood 

Water People’s Utility District (Rockwood). 

Background 

In 2011, NW Natural, PGE and Rockwood were operating 

under a utility license with the city of Gresham (city) when 

the city adopted a resolution, authorized by its code, raising its 

license fee from 5 percent to 7 percent of gross revenues. The 

intent of the fee increase was to raise revenue to avoid budget 

cuts in the fire and police departments. After the resolution 

was adopted, the utilities filed an action for a declaratory judgment 

that Gresham’s resolution was preempted by state law, 

specifically ORS 221.450. 

ORS 221.450 provides, in part, that; “[A city may impose a 

privilege tax on certain utilities] only if the entity is operating 

for a period of 30 days within the city without a franchise from 

the city and actually using the streets, alleys or highways, or 

all of them, in such city for other than travel on such streets 

or highways. The privilege tax shall be for the use of those 

public streets, alleys or highways, or all of them, in such city in 

an amount not exceeding five percent of the gross revenues of 

the cooperative, utility, district or company currently earned 

within the boundary of the city.” 

The utilities argued that Gresham’s fee amounted to a privilege 

tax and that ORS 221.450 preempted the city of Gresham 

from imposing a privilege tax in excess of five percent 

and could only impose that privilege tax on utilities operating 

without a franchise. Rockwood joined in the lawsuit arguing 

that because public utility districts are government entities, 

Gresham could not tax Rockwood without express statutory 

authority, which ORS 221.450 provided, but limited the tax 

to just 5 percent. 

The trial court agreed with the utilities and found that ORS 

221.450 preempted the city’s ability to impose a privilege tax 

of more than 5 percent; it did not reach Rockwood’s alternate 

argument. On appeal, the Oregon court of appeals reversed 

the trial court on the grounds that the utilities were operating 

under a franchise and as a result, ORS 221.450 did not 

apply and thus did not limit the city’s ability to charge the fee. 

ENERGY EFFICIENCY 

NEVER CLOCKS OUT. 

The great thing about energy efficiency is that it works 

24/7. Better yet, Energy Trust of Oregon offers cash 

incentives and technical expertise to help you save 

energy and money with energy improvements. 

+ 

Are you ready to get more from your energy? 

Call us at 1.866.368.7878 or visit www.energytrust.org. 

Serving customers of Portland General Electric, 

Pacific Power, NW Natural and Cascade Natural Gas. 


Consequently, the court of appeals did not address whether 

Gresham had home-rule authority to enact the ordinance or 

whether the license fee in question was a “privilege tax.” 

Analysis 

On review, the Oregon Supreme Court directly took on the issue 

of whether ORS 221.450 preempted the city from imposing 

a license fee that exceeds 5 percent of a utility’s gross revenue. 

The League filed an amicus in the case in support of Gresham 

arguing that ORS 221.450 did not preempt the city. 

Relying in part on its previous decision in Rogue Valley Sewer 

Services v. City of Phoenix, another case in which the League 

filed an amicus brief in favor of home rule, the court concluded 

that ORS 221.450 does not preempt the city from raising the 

utilities’ franchise fees. Citing the League’s brief, the court 

noted that local government enactments are presumed valid 

unless there is clear legislative intent to preempt. The court 

was unable to conclude that the Legislature intended ORS 

221.450 to be the exclusive means by which a city could 

charge privilege taxes or license fees for use of its rights of 

way, and therefore, ORS 221.450 did not preempt a city from 

adopting a higher rate. 

With respect to Rockwood, the court held that Gresham could 

not impose its fee on Rockwood because it is a unit of government, 

and the general principle is that one unit of government 

cannot tax another absent express statutory authorization. 

However, because Gresham did not raise the argument, the 

court specifically noted that it was not deciding the broader 

question of how home rule authority might interact with the 

principals of intergovernmental taxation. As a result, whether 

a home rule city can tax another unit of government remains 

an open question. 

Impact to Cities 

This case represents another victory in securing home rule 

authority for cities. Although the Legislature has authority to 

preempt a city, this case again reinforces that the Legislature’s 

intent to do so must be clear and that merely legislating in an 

area is not sufficient to preempt a city’s constitutional home 

rule authority. This case also creates more certainty for cities 

that want to impose a higher license fee on private utilities 

operating in their rights of way. Finally, the court left open 

the question of whether a home rule city can impose a tax on 

another unit of government, thereby keeping the door open 

for cities to do so, all-be-it with the expectation that they will 

have to defend that action in court. 

Ms. Martin is a senior associate with Beery Elsner & 

Hammond LLP. 

Low Cost Loans to Improve 

Wastewater and Stormwater 

Contact CWSRF for the BEST LOAN RATES 

to public agencies for the planning, design 

or construction projects that prevent or 

mitigate water pollution. 

(503) 229-LOAN 

CWSRFinfo@deq.state.or.us 

Scan QR code to visit: 

www.deq.state.or.us/wq/loans/loans.htm 



City Events 

June 

4-19 St. Paul – Berries, Brews & BBQs (FPGardens.com) 

8-12 Sisters – Sisters Rodeo & Parade 

(www.sistersrodeo.com) 

10-12 Cannon Beach – Sandcastle Festival 

(www.cannonbeach.org) 

11 La Pine – High Desert Rhubarb Festival 

(www.lsgardens.com) 

11 The Dalles – 6th Annual Beer Fest 

(www.thedallescivic.com) 

14-28 Astoria – Music Festival (www.liberty-theater.org) 

16-18 Burns – Country Music Jamboree 

(www.highdesertfiddlers.com) 

16-18 Nyssa – Nite Rodeo (208-249-1595) 

16-19 Reedsport – Chainsaw Sculpting Championships (amystauffer@frontier.com) 

17-18 Lakeside – Lakeside Brewfest 

(www.lakesidebrewfest.com) 

17-19 Astoria – Scandinavian Midsummer Festival 

(www.astoriascanfest.com) 

17-19 Silverton – Oregon Garden Brewfest 

(www.oregongarden.org) 

17-19 Sutherlin – Woofstock Festival (541-580-6810) 

18 Richland – Eagle Valley Days (541-742-4222) 

24-25 Carlton – Carlton Fun Days (503-852-7575) 

24-25 Lake Oswego – Festival of the Arts 

(www.lakewood-center.org) 

24-25 Roseburg – 48th Annual Summer Arts Festival 

(www.visitroseburg.com) 

24-26 Baker City – Cycling Classic 

(www.bakercitycycling.org) 

24-26 Prineville – Western Days (www.visitprineville.org) 

24-26 Rockaway Beach – Pirate Festival 

(www.rockawaybeachor.us) 

24-26 Rogue River – 63rd National Rooster Crowing Contest (www. 

cityofrogueriver.org) 

24-26 Tigard – Festival of Balloons (www.tigardballoon.org) 

25-26 Lincoln City – Summer Kite Festival 

(www.oregoncoast.org) 

Send your city event to 

Julie Oke at jmoke@orcities.org. 

July 

1-4 La Pine – Frontier Days (www.lapinefrontierdays.org) 

1-4 Portland – Waterfront Blues Festival 

(www.waterfrontbluesfest.com) 

1-4 St. Paul – St. Paul Rodeo (www.stpaulrodeo.com) 

1-4 Vale – Oregon Trail Days & Rodeo (541-473-3800) 

2 Lakeside – July 4th Fireworks (admin@cityoflakeside.org) 

3-4 Haines – Stampede Rodeo (www.hainesstampede.com) 

4 Madras – 4th of July Parade & Celebration (541-475-2350) 

4 Prineville – Historic 4th of July Celebration 

(www.visitprineville.org) 

4 Reedsport – Fireworks on the Bay 

(www.ddmurphy16@charter.net) 

4 Seaside – 4th of July in Seaside (www.seasidechamber.com) 

4 Springfield – Light of Liberty Fireworks (www.subutil.com) 

5 Springfield – Run Springfield Race & Community Party 

(www.springfield800.com) 

6-9 Elgin – 70th Elgin Stampede Rodeo (www.elginstampede.com) 

8-9 McMinnville – Turkey-Rama Festival 

(www.downtownmcminnville.com) 

8-10 Yachats – Yachats Music Festival (www.yachats.org) 

9 Donald – Hazelnut Festival (503-902-5047) 

9 Sisters – Sisters Outdoor Quilt Show 

(www.sistersoutdoorquiltshow.org) 

9-10 Sandy – Sandy Mountain Festival 

(www.sandymountainfestival.org) 

15-16 Sherwood – Robin Hood Festival (www.robinhoodfestival.org) 

15-17 Coburg – Coburg Golden Years (541-682-7871) 

21-30 Coos Bay – 38th Annual Oregon Coast Music Festival 

(www.oregoncoastmusic.org) 

22-23 Estacada – Summer Celebration (www.estacadasc.org) 

22-24 Tualatin – ArtSplash Art Show & Sale 

(www.tualatinoregon.gov) 

23 Troutdale – Summerfest (503-669-7473) 

25-26 Salem – World Beat Festival (www.worldbeatfestival.org) 

28-31 Dallas – Summerfest (503-623-2564) 

29-30 Newberg – Old Fashioned Festival (503-554-5610) 

29-30 Grants Pass – Back to the 50s (www.travelgrantspass.com) 

29-30 Paisley – Mosquito Festival (www.cityofpaisley.net) 

30 Coburg – 12th Annual Quilt Show (www.coburgquiltshow.org) 

30 North Powder – Huckleberry Festival (541-963-8588) 

30 Stayton – Santiam Summerfest (503-769-3464) 


The right partner can make 

all the difference. 

“My experience with CIS has been PHENOMENAL! I cannot remember 

a time in the past 18 years that I have called and not been able to get a 

question answered.” 

Crystal Inners 

Payroll Clerk, City of Hermiston 

CIS: partnering 

with Oregon 

cities and 

counties since 

1981. 

Experienced risk management | Comprehensive benefits programs | Expert claims processing | 

Innovative trainings | Strong coverages (liability, auto, property and workers comp) 


June 2016 | LOCAL FOCUS 35 

For more information contact Bill LaMarche, CIS member relations manager, at blamarche@cisoregon.org.

LEAGUE 

of 

Oregon 

CITIES 

Helping Cities Succeed 

League of Oregon Cities 

1201 Court St. NE 

Suite 200 

Salem, Oregon 97301 

RETURN SERVICE REQUESTED 

PRSRT STD 

U.S. POSTAGE 

PAID 

SIPRINT 

For mailing list changes, please 

email loc@orcities.org. 

2016 LOC Business Partners 

PLATINUM LEVEL 

BPAS 

Aha Consulting Inc. 

Ameresco 

American Leak Detection 

Anderson Perry & Associates, Inc. 

Buell Recreation 

CH2M 

DAS Procurement Services 

Energy Trust of Oregon 

FCS GROUP 

Jensen Strategies, LLC 

GOLD LEVEL 

Johnson Controls, Inc. 

Jordan Ramis PC 

Kaiser Permanente 

McKinstry 

Mersereau Shannon LLP 

Northwest Playground Equipment 

NPPGov 

Oregon Dept. of Environmental Quality - 

Clean Water State Revolving Fund 

SILVER LEVEL 

Oregon Public Health Institute 

Patterson Buchanan Fobes & 

Leitch, Inc. 

Piper Jaffray 

Regence Blue Cross Blue Shield 

RH2 Engineering Inc. 

Southern Oregon Credit Service 

Talbot, Korvola & Warwick, LLP 

Waste Management of Oregon 

American Legal Publishing 

Angelo Planning Group 

AssetWorks, Inc. 

Avista Utilities 

Baum Smith, LLC 

Beery, Elsner and Hammond, LLP 

Building Department, LLC 

Bullard Law 

Carothers, Bornefeld & Associates 

Davis Wright Tremaine LLP 

GHD Inc. 

Hagan Hamilton Insurance, Inc 

Hawkins Delafield & Wood LLP 

ICMA Retirement Corp. 

LGPI 

MRC/Gametime Park & Playground 

Equipment 

Murray, Smith & Associates, Inc. 

Oregon Association of Water Utilities 

Pacific Power 

Pivot Architecture 

Portland General Electric 

Portland State University – Center for 

Public Service 

Rural Community Assistance Corp. 

Tonkin Torp LLP 

Union Pacific 

Western Collection Bureau, Inc.

ECONOMIC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?