February 2016
Basin Business
Thursday, February 18, 2016, Herald and News
KLAMATH BASIN
New hair stylist shop featues options for children
Business
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Cha mber honor s Message from new board president
— Page 4
What’s economic development mean? — Page 5 Labor market, slow, but growing — Page 5
Dan and Susan Beach of Beach’s Jewelers were honored with a Lifetime Achievement Award.
Packed house cheers award winners at Chamber Gala: The Basin’s best businesses
A publication of the Herald & News Chamber: www.klamath.org
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Thursday, February 18, 2016, Herald and News
Chamber Gala honors local businesses The 95th Annual Awards Gala of the Klamath County Chamber of Commerce at the Ross Ragland Theater drew about 300 people on Feb. 6. Here’s the list of nominees and photos of the winners: Commitment to Community (sponsored by Rachael Spoon, State Farm Agent) n Bread Wagon/Gearheart Events n Green Blade Bakery n Asurion n US Bank n CASA for Children of Klamath County n Purcell Productions n Kruise of Klamath n Howard’s Meat Center n Klamath and Lake Community Action Services n Starv’n Marv’n Family Restaurant n Steel Sensations n Millard Dental n Gary Cheyne Country Financial
Basin Business Best place to work — Monte Johnson Insurance: From left, Sarah Hanson, Randal Hanson, Michelle Johnson, Jerry Johnson, Deanna Kratochvil and Mike Kratochvil.
Big Idea Innovation Award (sponsored by Klamath IDEA) n Blue Zones n Cal-Ore n Gaucho Collective n Klamath & Lake Community Action Services Lifetime Achievement Award (sponsored by Sky Lakes Medical Center) n Coach Danny Miles n Dan and Susan Beach n Don Ambers n Dr. Robert Graham n Keith Hamilton n Rich Schmerbach Pathfinder Award (sponsored by Lewis and Clark Bank) n Joe Rossi (BBSI) n Kat Rutledge (SBDC) n Kathie Philp (Pacific Crest Federal Credit Union) n Keith Endacott (Klamath 9-1-1)
See HONORS, Page 3
ABOVE: Best Innovative Idea — Gaucho Collective: Randal Pope, Adam Burwell and Thomas Klemz. AT LEFT: Best place to work — Running Y Ranch and Resort: From left, Cathy Henderson, Victoria Haley, George Rogers, Meta McDonald, Kenny Ivie and Pam Silcox.
Basin Business
Thursday, February 18, 2016, Herald and News
Honors / from Page 2
All photos courtesy of Brian Gailey Photography
Photos clockwise from top: Top Entrepreneurs — Darren and Jen Roe; Pathfinder — Kat Rutledge; Ambassador of the Year — Victoria Haley; Environmental leadership — Oregon Tech: from left, James Lake, facilities services maintenance supervisor, OIT President Chris Maples and Kerry Byrne, natural science assistant professor; Not shown: Millard Dental for Commitment to Community.
n Kendall Bell (M’bellish) n Mark Dobie (Herald and News) n Nicole McNerney n Paul Stewart (Sky Lakes Medical Center) n Paul Titus (Asurion) n Senior Master Sergeant Brett A. Lundberg (Kingsley) n Stephanie Van Dyke (Sky Lakes) n Tricia Hill (Gold Dust/Walker Bros Farms) Environmental Leadership (sponsored by Avista Utilities) n Columbia Forest Products n Gro-Volution, n Jeld-Wen Windows & Doors n Maverick Motel n Oregon Tech n Steen Sports Park n The Ross Ragland Theater Spirit of Entrepreneurism (sponsored by KCC’s SBDC) n Alan and Neal Eberlein (Southtowne Commerce Center) n Darren and Jen Roe (Crater Lake Zipline) n Doug Kirby (Klamath Community College) n Mike Ogborn and Rob Cardoza (Big Boy BBQ) n Nell and David Scott (Rodeos Pizza & Saladeria) n Terry Wagstaff (Klamath Basin Brewing Brewpub & Grill) Best Place to Work (sponsored by KBHBA) Small Employer (15 or less employees) n Blossor Real Estate Services n Blue Zones Project — Klamath Falls n Monte Johnson Insurance Services Large Employer (16 or more employees) n Running Y Ranch Resort n Express Employment Professionals — Klamath Falls
Contact the Chamber Klamath County Chamber of Commerce
205 Riverside Drive, Suite A Klamath Falls, OR 97603 Office: 541-884-5193 Fax: 541-884-5195 Charles “Chip” Massie Executive Director cmassie@klamath.org
Heather Tramp: Marketing and Program Coordinator Email: heathert@klamath.org www.klamath.org www.facebook.com/Klamath Chamber twitter.com/AccessKlamath
Mark Fay, M.D. Scott Stevens, M.D. Physician/ Surgeon of the Eye Physician/ Surgeon of the Eye
Edwin Tuhy, O.D. Optometrist
Jennifer Sparks, O.D. Optometrist
New Patients Welcome
2640 Biehn St. • 541.884.3148 • www.klamatheyecenter.com
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Thursday, February 18, 2016, Herald and News
Basin Business
CHANGING OF THE GUARD
New chamber president, board members installed The following is an excerpt from Chamber President Todd Andres’ speech to the chamber members at the annual gala: Although we are here tonight to welcome 2016 and focus our energy on creating a better Klamath County, let us never forget the efforts and commitments from the leaders of the past. Dan Keppen, (past president) thank you for your leadership and commitment to our community, with the foundation you have laid, we can continue to build a successful future. Typically, during one of these speeches, you will hear how the last year was tough and how we got through it. You will also hear how the outlook for the upcoming year is going to be so much better. Well, I will not disappoint. You are going to hear some of this same talk, but with a bit of a different twist. Tonight; I don’t want to focus so much on if we are going to have a great 2016 but how we can choose to control the outcome we desire. Some might call it the “Secret Sauce” of success. When I was growing up, we had a framed sign on the wall next to our kitchen table, it read: “Attitudes are contagious…is yours worth catching?” This sign was just a friendly reminder to not only have a great day, but also the impact you can have on someone else’s day. During the times I was in a bad mood or feeling down, my father would pull me aside and say “Todd, it looks like you need an “Attitude Adjustment.” You see, we all have the ability to control about how we feel about something, our outlook on the day ahead of us, our attitude on life. I believe, and successful people understand, one’s attitude is a guide to one’s future. Now, some here tonight may doubt this premise? If this is you, please allow me the opportunity to give you a few things to consider: 1) The Blue Zone Initiative: Two young ladies saw a problem within our community. In all of Oregon, Klamath County was ranked as the unhealthiest county in the state. These two individuals refused to accept this as the norm and our future. With a positive attitude, they convinced their employer to invest in an effort to change the health of our community. They convinced 27 community members to join them at the Governor’s Health Conference to promote our community. They wanted to show this was a community who wants to improve. A community that wants to be chosen as one of two Blue Zone communities in the state. In fact, at this conference, they basically put the entire state on notice. The others at the conference were competing to be the second Blue Zone in Oregon, because Klamath Falls was going to be the first.
They overcame the occasional setback and criticism to this new idea to improve our community. But you see, with their positive contagious attitudes, people naturally wanted to help them achieve their goal. Today, we now have a local staff focused on implementing the Blue Zone concept and creating a healthier environTodd Andres ment. We continue to have community buy in and individual commitment to the Blue Zone concepts. And in a few short weeks, there will be a community kickoff event showcasing the future health opportunities for the citizens of Klamath Falls. I believe our current health ranking will change. For their commitment and what they have achieved so far, I would say these two individuals have a great attitude. An attitude that has made an impact. An attitude worth catching. 2) The Klamath Promise: A combination of city schools, county schools, higher education, and local civic organization understood our local graduation rate was not good enough. In fact, we held the distinction of being one of the worst counties in one of the worst states in the nation in relation to graduating our students from high school. Youth are our future, like it or not, we were in the process of slowly undermining the future of our community. A successful Klamath starts with our youth and the importance of a high school education. Understanding this, these common interest groups began working together on this problem. The team was going to be more successful than anyone individual. This group is committed in developing partnerships, such as the one with the Herald and News, to communicate and stress the importance of education. They are committed to have a 100 percent graduation rate in our schools. Although we have a long road in front of us, I have seen their hard work beginning to pay off. Graduation rates are beginning to improve and more kids are seeing a value in their education. We are coming closer to that 100 percent graduation goal. To all of you involved in this important goal, I say from all of us, thank you. Again, I would say the positive attitude of the individuals committed
to this program is one worth catching. 3) The Klamath Downtown Association: These groups of businesses, located in our historic district, understood the value of a solid and vibrant downtown to the overall success of a community. Our downtown had the “guts” but changes were needed to improve the economic prosperity of the area. These businesses worked together on summer events to expose and highlight the area. They brought in national consultants to educate building owners on smart investments they could make to improve the vitality of the district. They also work with the “Oregon Main Street Program” improving the districts exposure to grant opportunities and better ways to market this special asset to the state. In fact, a member of this association is now seen as leader in the area of downtown districts, testifying in Salem on the importance of a downtown to the heritage of a community. Yes, these businesses ran into road blocks, opposition, and challenging circumstance, but in the end they continue to keep a positive attitude towards the livelihood of our downtown. Again, an attitude very much worth catching. Other successes: KCEDA’s new efforts, The 2015 Babe Ruth World Series, The development of a new Mission center, Discover Klamath marketing efforts, the Klamath Trails Alliance building safe scenic trails, Steen Sports Park commitment to our youth. Today, I ask us to build on this. To make Klamath County known as a place with the friendliest people, a place where things get done, a place where at times we can disagree but in the end we come together to find a common solution, where the rest of the state is saying “something special is going on down there”. By doing this, our community reputation will improve, visitors will come, and our businesses will grow. All of these efforts, and many others, are important for the future of Klamath County. Your Klamath County Chamber of Commerce will be focused in the coming year on educating, promoting, advocating, and supporting all of the businesses we represent. We will also have our occasional challenge, road block, or unjust criticism, but we will overcome. We will also conduct our business with a great attitude, knowing this will help achieve our mission of a better Klamath County. I am honored to serve this great community we all call home. I thank you for your support as we move Klamath County forward.
Basin Business
Chamber executive board President: Todd Andres, Pacific Power 1st VP: Rachael Spoon, State Farm Treasurer/Secretary: Jennifer Scanlan, self-employed Immediate Past President: Dan Keppen, Dan Keppen and Associates; Randy Shaw, Coldwell Banker Holman Premier Realty; Jason Chapman, Chapman Ranch; George Ormsbee, Cal-Ore Communications; Sergio Cisneros, Sergio’s Mexican Restaurant. General Board Werner Reschke, wrinkledog Inc.; Maggie Poison, Cascade Health Alliance; Mark Dobie, Herald and News; Tessa Gutierrez, Soroptomist; Wes French, Kingsley Field; Harry Mauch, PowerPac Rentals; Tracy Brunner, OSU I-CBREC; Brian Gailey, Brian Gailey Photography; Janet Buckalew, Pacific Crest Federal Credit Union; Roberto Gutierrez, Klamath Community College; Dan Peterson, Oregon Tech. Ex-Officio Board Members City of Klamath Falls, Klamath County, KCEDA, Oregon Institute of Technology, Klamath Community College, KUHS DECA. Staff Charles “Chip” Massie, Executive Director; Heather Tramp, Marketing and Program Coordinator; John Massie, Reception; Joyce Jordan, Reception
Thursday, February 18, 2016, Herald and News
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How economic development in Klamath affects you
One question I often hear from local residents is, “Economic development — what exactly does that mean?” Understandably, some people are unsure how economic development works on a practical, tangible level they can see and experience — so naturally, they may not realize how it affects them. At the Klamath County Economic Development Association (KCEDA/Team Klamath), we believe economic development is about creating wealth in the area you serve. To some, that might sound like we’re an elite organization, or one that seems irrelevant to their lives here in the Klamath Basin. This could not be further from the truth. The fact is, accomplishing our wealth creation goals in Klamath County improves the quality of life for every single resident. For an economic development agency, wealth creation is not about individual stock portfolios or assets. In our field, wealth creation means attracting successful businesses to a region: our region. It means showing an up-and-coming company that Klamath County is the best place to plant their roots because we have the space, tax advantages and talent pool they need to take their enterprise to the next level. By getting to that next level, they can provide jobs to more of our residents and pour more of their tax dollars into our county. This amounts to a higher quality of life for every person who lives here: man, woman and child. That’s why we believe in wealth creation. An economic development agency does not only create wealth, though. At KCEDA, we also help preserve it. Part of our job is preserving profits for the existing companies that have called Klamath County home for
decades. These are the local institutions that have employed our residents for generations, improved our county’s infrastructure with their tax dollars year after year and elevated everyone’s quality of life on a gradual, consistent basis. For residents who are not business owners, that matters because it keeps them employed. The profitability of the company you work for is extremely important, and the Greg O’Sullivan local economic development agency exists to support that profitability. At KCEDA, we provide the retention and expansion programs that help your employer succeed. So in addition to wealth creation, economic development is also about preserving wealth by doing the “behind the curtain” work necessary for our most valued companies. By partnering with us to retain and expand their businesses, they can continue to improve the lives of the people who live here. That’s how economic development affects you: It raises the quality of life in our community, and it supports the companies our residents work for so they can continue to keep those residents employed. Economic development is an endeavor that affects everyone, even when they don’t realize it. Greg O’Sullivan is executive director of the Klamath County Economic Development Association (KCEDA). Team Klamath can be reached at 541-882-9600.
Labor trends in South Central Oregon promising On the whole, 2015 was a stellar year for job growth across Central and South Central Oregon, according to the state Labor Department. Seasonally adjusted employment rose by over 2,700 jobs across Central Oregon and South Central Oregon saw a gain of over 300 jobs. However, when digging a little deeper at the county level the state finds that the narrative is not quite as rosy for all communities. When looking at the five counties across the region, Deschutes County, the only metropolitan area east of the Cascades, was the big winner. The Bend-Redmond Metropolitan Statistical Area added 2,690 jobs
from the beginning of the year, a growth over 3.7 percent. Deschutes County added jobs at a faster pace than all other metropolitan areas in Oregon. After several years of stagnation in the local job market, Klamath County finally began to experience sustained recovery in 2015. The county added 325 jobs throughout the year, which equates to a modest growth rate of 1.5 percent for 2015. Although job growth of 1.5 percent over the course of a year is not particularly impressive, it was the first time Klamath County posted sustained job growth since before the recession.
Klamath County: The seasonally adjusted unemployment rate dropped to 7.9 percent in December, down significantly from 8.2 percent in November. The rate remains down from this time last year when it was 9.1 percent. Lake County: The seasonally adjusted unemployment rate jumped to 7.6 percent in December, up from the November rate of 7.3 percent. The unemployment rate was down from last December when it was 9.1 percent. Lake County shed 30 jobs in December; the county typically experiences no seasonal employment losses this time of year. Total nonfarm employment was up 70 jobs from last December.
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Thursday, February 18, 2016, Herald and News
Basin Business
Tax season:
Are you following a ‘tax-smart’ strategy? We’re getting closer to April 15: Tax Filing Day. And while there may not be much you can do to change your results for the 2014 tax year, you can certainly look closely at your tax returns to find areas you might be able to improve next year — and one such area is your investment portfolio. Of course, you may also find opportunities in other places, too. Could you have taken more deductions? Could you have moved some of your debts into a tax-deductible loan, such as a home equity loan or line of credit? You’ll want to consult with your tax advisor to determine areas of potential savings. However, you may be able to brighten your tax picture by making some “tax-smart” investment moves, such as the following: n Resist the urge to trade frequently. It can be costly to constantly buy and sell investments. In addition to the commissions you may incur, and the possibility that such excessive trading can impede a consistent investment strategy, you could rack up a sizable tax bill. If you sell an asset that you’ve held for a year or less, any profit you earn is considered a short-term capital gain, which is taxed at the same rate as your ordinary income. So, for example, if you bought Investment ABC for $1,000 on Jan. 5, 2014, and you sold it for $1,250 on Dec. 31, 2014, you’d be taxed on your $250 gain. If you are in the 28 percent tax bracket, you’d owe $70 in taxes. But if you had waited until Jan. 6, 2015, and you sold your investment for the same $250 gain, you’d pay the more favorable long-term capital gains tax rate of 15 percent, which translates into $37.50 in taxes — just over half of what you’d owe at the short-term rate. If you habitually sold investments after owning them less than a year, the taxes could really add up —
so try to be a “buy-and-hold” investor. n Increase your 401(k) contributions. If you aren’t already participating in your 401(k) or similar plan, start now. And if you are contributing, boost your contributions whenever your salary goes up. You typically put “pretax” dollars in your 401(k), so the more you add, the lower your annual taxable income. Plus, your earnings can grow tax deferred. n “Max out” on your IRA. Depending on your income level, you may be able to deduct some, or all, of your contributions to your traditional IRA — and these deductible contributions can lower your taxable income. Plus, your investment can grow tax deferred. (Keep in mind, though, that taxes will be due upon withdrawal, and any withdrawals made before you reach 59 ½ are subject to a 10 percent IRS penalty.) If you contribute to a Roth IRA, your contributions are never deductible and won’t lower your taxable income, but your earnings are distributed tax free, provided you’ve had your account at least five years and you are older than 59½. In 2015, you can contribute $5,500 to your IRA, plus an additional $1,000 catchup contribution if you are 50 or older — and it’s almost always a good idea to “max out” your contributions each year. By following a buy-and-hold investment strategy and using those tax-advantaged accounts available to you, you may be able to help yourself — at tax time and beyond. Submitted by Merediith Hoffman Financial Advisor, Edward Jones 1307 S. Alameda Ave., Suite B Klamath Falls, OR 97603-3601 Phone: 541-273-2483
AmeriTitle adds four employees AmeriTitle announces the addition of Debbie Bergener, Nikki Galpin, Brenda Rodriguez and Lynda West to its staff. Nikki Galpin as marketer, is responsible for building, shaping and managing the execution of strategic marketing initiatives for the company, Debbie Bergener and Brenda Rodriguez are title officers and Lynda West is an escrow officer. The group brings an in-depth knowledge of marketing, title and escrow. AmeriTitle continues to propel further as the industry leader with an integrated marketing and communication strategy that supports consistent business growth and enhances AmeriTitle’ s brand. AmeriTitle has built its reputation as one of the largest title and escrow companies in the Pacific Northwest serving its clients since 1975. With offices in Oregon, Washington and Idaho, its service footprint affords it a solid regional presence.
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New employees, from left, are: Lynda West, Debbie Bergener, Brenda Rodriguez and Nikki Galpin.
“On a local level, we are committed to building longstanding relationships and strong ties in the communities we serve,” according to a press release. For more about AmeriTitle, visit http://www.amerititle.com
Family hair salon to open downtown
H&N photo
Cherri Peterson plans to open in March.
Cherri’s Family Hair Salon at 125 S. Ninth St. plans to open for business March 1. Cherri Peterson, a licensed beautician for 16 years in the Basin and graduate of the College of Cosmetology, wanted to offer a salon that includes children’s hair styling. “We’ll have five styling stations, but two of them will be for children,” she said. Locating on the block where there is access to other children’s stores along South Ninth was part of the goal, she said. After opening, Peterson hopes to hire on additional help. The shop will be open Monday through Friday from 9 a.m. to 5 p.m. and Saturdays from 10 a.m. to 2 p.m. Call 541-887-2744 for an appointement.
Basin Business
Thursday, February 18, 2016, Herald and News
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Don’t forget to claim ‘kicker’ when doing your income taxes Oregon tax surplus credit goes to eligible taxpayers
submitted photo
Caroline Kash, center, received $1,000 from H&R Block during its national promotion recently. The promotion ended this week.
Klamath Falls woman wins H&R block giveaway A Klamath Falls woman won $1,000 from H&R Block as part of the national company’s promotion, $1,000 to 1,000 people daily. Caroline Kash was the lucky winner. Thirty-two thousand people have won $1,000 from H&R Block dur-
ing the first month of tax season. Anyone who had filed their taxes in a participating H&R Block office by Feb. 15 were be automatically entered into the sweepstakes. For more information, taxpayers can visit www.hrblock.com/grand.
An entrepreneur’s journey is topic of the next Klamath IDEA talk This month Klamath IDEA will be featuring a local entrepreneur, Ken Cooper. The talk will be Tuesday, Feb. 23 at 6 p.m. at Nibbley’s Cafe. Cooper has developed and now is selling a product called the Jiffy Toter. His story is a great one. If you have a long driveway to drag your roll-carts up and down, you’ve got to check this out. Come listen as he recounts his trials and tribulations in bringing his product to market. The new venue is Nibbley’s Cafe. The group will have light snacks and a full no-host bar. Attendees will be able to order from the regular dinner menu. Come early and stay late and
Network with fellow entrepreneurs, business owners and others interested in supporting local business. All of this includes the opportunity to engage in stimulating conversation over great food and drink. Klamath IDEA (Inspire Development and Energize Acceleration) is a community-wide initiative dedicated to fostering and enhancing the entrepreneurial spirit in Klamath County. IDEA Talks are gatherings that bring together entrepreneurs, founders and business owners together. For details, call 541-887-8332.
SALEM — Tax return filing season is open and the Oregon Department of Revenue wants to remind you to claim your tax surplus credit, or “kicker,” on your 2015 personal income tax returns. The credit is how the state is returning a more than $402 million tax surplus to eligible Oregon taxpayers. There won’t be any kicker checks issued as there have been in the past. The state has launched What’s My Kicker, a new online tool that calculates your credit amount based on information from the 2014 Oregon tax return you filed. All you need to enter is your Social Security number or individual taxpayer identification number (ITIN), last name, and filing statuses for 2014 and 2015. Visit www.oregon. gov/dor and click on the “What’s My Kicker” link. You can only use this tool if your 2014 and 2015 filing statuses are the same. If your filing statuses are different, you can calculate the amount of your credit by multiplying your 2014 tax liability before any credits, except credits for taxes paid to other states, by 5.6 percent. You’re eligible to claim the credit if you filed a 2014 Oregon tax return and had tax due before credits. Even if you don’t have a filing obligation for 2015, you still have to file a 2015 Oregon tax return to claim your credit. The state may use all or part of your kicker to pay any state debt, such as taxes due for other years, child support, court fines, or school loans. For more information on claiming your credit or how to donate it to the Oregon State School Fund, see the instructions for Oregon Form 40 (full-year Oregon residents), Form 40P (part-year residents), and Form 40N (nonresidents). All forms are available on our website at www. oregon.gov/dor/forms. Those using
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tax preparation software will be presented with options to determine their eligibility and credit amount. Remember to file as early as possible to limit the potential for people to file fraudulent returns using your information. Filing early can also expedite processing by getting your return into the system sooner. We also recommend that you: n File electronically, using one of the many free options listed on the website at www.oregon.gov/dor/efiling. n Have your bank routing numbers ready when you file so you can use direct deposit for your refund. You can get your refund in 7 to 10 days by e-filing and using direct deposit, versus up to 10 weeks if you file a paper return and request a paper check. n Complete your federal return first. You’ll need information from it for your state return, and you must submit a copy of your federal return with your state return. n Ensure you have your W-2 included with your return. Filing a return without a copy of your W-2 can delay the processing of your return and refund. Visit www.oregon.gov/dor to get tax forms, check the status of your refund, or make tax payments; or call 1-800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or email questions.dor@ oregon.gov. For TTY for hearing or speech impaired, call 1-800-886-7204.
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Thursday, February 18, 2016, Herald and News
Basin Business Paid Advertisement
February 2016 Newsletter for Oregon State Senator Doug Whitsett, District 28 Senator Doug Whitsett
R-Klamath Falls - District 28 I represent the citizens of Senate District 28, which includes Klamath, Lake and Crook, as well as parts of Jackson and Deschutes Counties. As Senator of one of the largest Senate districts in the state, it is extremely important that my constituents remain in contact with me about the issues and concerns that affect their lives. You and I must work together to protect the common interests of rural Oregonians. I encourage you to contact my office by either email or telephone so that I can know how to best serve you. I look forward to hearing from you soon. Best Regards, Senator Doug Whitsett
Capitol Address: 900 Court St. NE, S-311 Salem, OR 97301 Capitol Phone: 503-986-1728 Newsletters: www.leg.state.or.us/whitsett Email Senator Doug Whitsett: sen.dougwhitsett@state.or.us
TRANSPARENT? YET ANOTHER CLOSED DOOR DEAL EMERGES It is axiomatic that no bad idea is ever really dead in the Oregon State Capitol. Supporters of defeated proposals will recycle, reprocess, or reincarnate, but they never give up. Governor Brown’s office recently announced that an Agreement in Principle (AIP) has been reached between the States of Oregon and California, PacifiCorp and the federal government to move forward with amending the Klamath Hydroelectric Settlement Agreement (KHSA). The KHSA requires the demolition of the four PacifiCorp-owned dams on the Klamath River. Governor Brown’s announcement is another unfortunate example of environmental activists’ refusal to take “no” for an answer. According to the press release, the target date for signing the amended version of the KHSA is February 29. The amended agreement would then be facilitated within the administrative processes established through the Federal Energy Regulatory Commission (FERC), including public comment periods. Under the new AIP, title of the dams would be transferred to a non-federal entity that would assume liability for, decommission and remove the dams by 2020. The Governor’s press release states that those four main parties will pursue implementation of the AIP through an administrative process governed by FERC. It also claims that the States of Oregon and California and the federal government are working with all Klamath Basin stakeholders, including members of Congress, the Native American tribes and farmers. The current KHSA proposal to destroy the four hydroelectric dams clearly requires the consent of the United States Congress before the process can even begin. For the past five years, the proposal has failed to even reach a floor vote in either Congressional chamber. It continued to fail during Democrat majority control of both chambers. It has also subsequently failed during Republican majority control of both chambers. Nevertheless, Brown and her Natural Resource advisor have negotiated another agreement behind closed doors to attempt to destroy the dams. Unfortunately, under the Kulongoski, Kitzhaber and Kate Brown administrations, this process has become the New Oregon Way. Richard Whitman met with Representative Whitsett (R-Klamath Falls) and me on behalf of the Governor in my Senate office the day before the new AIP was released to the press. The Governor’s natural resources advisor asked for the meeting in order to inform us of the new plan to demolish the hydroelectric dams. During that briefing, he told us he had been working with the state of California, Klamath County, Upper Basin and Project irrigators, PacifiCorp and Congressman Greg Walden’s office to close the deal. The unmistakable message was that everyone was on board for moving forward. Whitman admitted he had not talked with Siskiyou County Supervisors, even though three of the four dams are located in Siskiyou
County. He reasoned that the Supervisors had simply never been a part of the deal. Recent polls show that as many as 80 percent of Siskiyou County citizens oppose destruction of the dams. Working in the Capitol for over a decade has taught me to listen respectfully, but to always verify. That same evening, I made and received a number of telephone calls and e-mails. Representatives of both the Klamath Irrigation District and Klamath Water Users Association indicated they had no previous knowledge of a new deal to remove the dams. They expressed their concern that they were not consulted regarding the negotiation of an agreement that would fundamentally alter their livelihoods. Two of the three Klamath County Commissioners had not previously heard of the new deal. Apparently, Whitman did have a conversation with Commissioner Kelley Minty-Morris. She apparently chose not to share the content of the conversation with the other two Commissioners. Congressman Walden’s office actually called me before I was able to reach out to them. They wanted to know if I knew any of the details about a new AIP. It is my understanding that the Congressman’s office had neither participated in, or been consulted with, regarding the new dam removal deal. They had only been told they would be briefed, on the day the AIP was announced. Both California Congressman Doug LaMalfa and Tom McClintock were also kept out of the loop, according to their staffs. Their offices had not yet seen the AIP and were to receive a first briefing the day after it was made public. Unfortunately, this represents just another day in Governor Brown’s promise of a new clear and transparent state government. Under the AIP, the federal Department of the Interior, which oversees the Bureau of Land Management, the States of California and Oregon and the federal Department of Commerce will be able to forge an administrative path at FERC for the dam removal. The clear intent is to completely bypass the need for Congressional approval and the vote of our federal elected representatives in Congress. The AIP further states the principles concur with the Klamath Water Users Association notice of potential termination of KHSA. It is alleged that the notice initiates a “meet and confer” process within that existing agreement. The intent appears to be to pivot to the directed manipulation of the FERC administrative process to facilitate the demolition of the dams. The AIP then, oxymoronically, states that nothing within the text of the agreement is “intended…to predetermine the outcome of any regulatory approval or other action by an agency” of the United States or the States of Oregon or California. That statement is in direct conflict with the AIP’s stated purpose of facilitating the removal of the dams by 2020. It is beyond credible to accept the veracity of these two
conflicting intents. We asked our Legislative Counsel (Counsel) for their legal opinion regarding whether the states of Oregon and California can legally join in a project to demolish the dams without Congressional approval. In their opinion, the two states cannot participate in a joint agreement to remove the dams without Congressional approval. Counsel goes on to explain that Oregon cannot spend more to demolish the dams than is allowed under current law. That law limits Oregon expenditures to no more than its share of the $200 million currently being collected from its ratepayers by the PacifiCorp surcharge under Oregon Revised Statute chapter 757. Counsel further states the combined cost of removing the dams, and paying for the immense liability related to the 20 million cubic yards of potentially toxic sludge accumulated behind the dams, cannot exceed the surcharge amount. Current Oregon law prohibits the state from expending any public money for the purpose of facilitating the destruction of the dams. In keeping with that prohibition, the AIP obligates no state funding for the dam removal. Neither does it obligate any federal funding. Mr. Whitman and the Governor appear to respectfully disagree. It is my understanding that the Governor believes the dams can, and will be demolished, without further action by the Legislative Assembly. Governor Brown and Whitman appear to believe the dams can, and will, be destroyed through administrative actions that purposely bypass Legislative and Congressional authority. One might ask the Governor who is to pay the potentially enormous liability cost of blowing up the four dams. Is her plan to encourage the Public Utility Commission to determine the expense to be “prudently incurred costs” and allow PacifiCorp to charge their ratepayers? Is her plan to amend current law to allow the state of Oregon to charge its taxpayers? Is the plan to pay the costs through some federal administrative action without Congressional approval? It would seem that clear and transparent government would require bureaucrats to actually consult with elected legislators and Congressmen prior to making monumental decisions. Further comment will have to wait until the bureaucrats allow our elected representatives of the people to see their actual written Agreement. Please remember—if we do not stand up for rural Oregon, no one will. Best regards, Doug Follow the link below to subscribe to an electronic version of my weekly legislative newsletter updates: https://public.govdelivery.com/accounts/ ORLEG/subscriber/new?topic_id=ORLEG_30.