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BEFORE the OFFICE of ADMINISTRATIVE HEARINGS STATE of OREGON for the SECRETARY of STATE ELECTIONS DIVISION

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BEFORE the OFFICE of ADMINISTRATIVE HEARINGS STATE of OREGON for the SECRETARY of STATE ELECTIONS DIVISION BEFORE THE OFFICE OF ADMINISTRATIVE HEARINGS STATE OF OREGON for the SECRETARY OF STATE ELECTIONS DIVISION IN THE MATTER OF: ) PROPOSED ORDER ) SARAH AMES, ) OAH Case No.: 1102579 Respondent ) Agency Case No.: 11-102-SA HISTORY OF THE CASE On August 24, 2011, the Elections Division (Division) issued a Notice of a Final Determination and Intent to Impose a Civil Penalty; Contested Case Notice and Opportunity to be Heard, and Final Order by Default Imposing Civil Penalty if No Request for Hearing is Received (Notice of Violation) to Sarah Ames (Ames).1 On August 24, 2011, the Division issued a Notice of Violation to Katherine Essick (Essick). On October 25, 2011, Ames and Essick both requested a hearing. On October 26, 2011, the Division referred the hearing requests to the Office of Administrative Hearings (OAH) and requested that the cases be consolidated for hearing. Senior Administrative Law Judge (ALJ) Dove L. Gutman was assigned to preside at hearing. On February 13, 2012, a consolidated hearing was held in Salem, Oregon. ALJ Gutman presided. Nancy Hungerford, Attorney at Law, represented Ames and Essick. 2 Assistant Attorney General Lynn Rosik represented the Division. Ames and Alana Cox, a Division Compliance Specialist, both testified. On March 5, 2012, the hearing reconvened. ALJ Gutman presided. Ms. Hungerford represented Ames and Essick. Ms. Rosik represented the Division. Ames and Essick both testified. The record was held open to receive closing arguments and reply briefs. On March 30, 2012, the Division and Ms. Hungerford filed closing arguments. On April 13, 2012, the Division filed a reply brief. On April 16, 2012, Ms. Rosik submitted copies of Exhibit C1 pages 62-68. 3 The record closed on April 16, 2012. ISSUES 1. Whether Ames violated ORS 260.432(2). 2. Whether a civil penalty in the amount of $75 shall be imposed against Ames. 1 The Notice of Violation is dated August 24, 2011 but was mailed on August 25, 2011. 2 The companion case is OAH Case No. 1102578. 3 The pages were missing from the record. In the Matter of Sarah Ames , OAH Case No. 1102579 Page 1 of 103 EVIDENTIARY RULING Division. Exhibits A through F were admitted into evidence without objection. Ames. Exhibits 2 through 4, 6 through 12, and 14 through 19 were admitted into evidence without objection. Page 2 of Exhibit 1 was admitted into evidence without objection. Page 1 of Exhibit 1 and Exhibit 13 were withdrawn by Ames. Exhibit 5 was admitted into the record over the Division’s relevance objection. FINDINGS OF FACT Background 1. In 2010 and 2011, Carole Smith was the Superintendent of Portland Public Schools (PPS); Jollee Patterson was general counsel at PPS; and Jeff Condit was outside counsel for PPS. Among other things, Ms. Patterson and Mr. Condit were responsible for reviewing materials for compliance with election law. (Test. of Ames; Ex. C1 at 1-3.) 2. In 2010 and 2011, Robb Cowie was the Executive Director of Community Involvement and Public Affairs (CIPA) at PPS; C.J. Sylvester was the Chief Operating Officer of CIPA; Ames was the Public Affairs Director of CIPA; Matt Shelby was the Public Information Officer of CIPA; Kathryn Essick (Essick) was the Family Communications Manager of CIPA; and Brian Christopher (Christopher), Francisco Garcia (Garcia), and Richard Martin (Martin) were part of the Educational Media Services of CIPA. (Test. of Ames, Essick; Ex. C1 at 1-3.) 3. Mr. Cowie was the supervisor of Ames and Essick. Ames was the point person for bond communications. She was responsible for drafting and editing materials. Essick was responsible for copy editing and oversight of the PPS Pulse, a monthly e-newsletter sent to approximately 40,000 members of the PPS community. Christopher, Garcia, and Martin provided technical production support in graphic design and web posting. (Test. of Ames, Essick, Ex. C1 at 1-3.) 4. The Portland School District is located in Washington, Clackamas, and Multnomah counties. (Test. of Cox.) 5. On or about November 8, 2010, Superintendent Smith proposed a bond measure to the Portland Public Schools Board of Directors. (Test. of Ames; Ex. C1 at 78.) 6. On December 8, 2010, a document entitled “Frequently Asked Questions: The PPS School Modernization Proposal” was posted on the PPS website. The document answered many of the questions posed to PPS by community members.4 The document provided, in part: 1. How big is Portland Public Schools? 4 The document consists of thirty-nine questions and answers. (Ex. C1 at 67-78.) In the Matter of Sarah Ames , OAH Case No. 1102579 Page 2 of 103 Portland Public Schools is the largest school district in Oregon with roughly 47,000 students in 85 schools, including neighborhood and focus schools, in addition to charters, alternatives and special programs. Portland Public Schools is the second largest property owner in the city and one of the region’s largest employers with more than 6,000 teachers and school support staff. 2. How old are the school buildings? The average age of PPS schools is 65 years old. Most were built either in the 1920s or just after World War II. Only two schools have been built in the last 40 years (Rosa Parks Elementary in North Portland and Forest Park K-8 in Northwest). While PPS has added computers and other technology to schools, and has addressed some of the most urgent building needs – such as earthquake safety and roof replacement – our school buildings have never been fully updated. 3. Why is Superintendent Carole Smith proposing a bond measure? PPS students do not have the same up-to-date classroom equipment, technology and other modern learning spaces as students in the neighboring school districts with newer buildings. PPS school buildings have never been fully updated. The buildings have worn out with leaking roofs and drafty windows; energy-inefficient and antiquated heating, ventilation and plumbing systems; overtaxed electrical systems with few outlets and outdated safety systems. A bond will provide dedicated money to address these needs and provide student and teachers with modernized schools. Without a bond, Portland Public Schools must continue to use scarce operating dollars for the most urgent building needs. 4. What will the proposed school building bond buy? All 85 schools will receive one-time student safety, security and building system updates, such as: replacing roofs, updating boilers, improving accessibility for disabled students and adults, and increasing student safety and security by installing new fire alarm systems, making seismic upgrades and providing secure access at entryways. In the Matter of Sarah Ames , OAH Case No. 1102579 Page 3 of 103 All schools will receive updates to classroom learning environments and updated teaching technology. Every K-8 and middle school (37 schools) will have an upgraded science lab, and 33 elementary and K-8 schools will have covered playground areas for outdoor physical education and recreational use. Six high schools not being rebuilt will have classroom updates to support rigorous teaching and learning, and will receive updates to their sites, such as landscaping, seed money for field upgrades, lighting, signage, walkways and renovated entrances. Schools across the city with high-priority needs – out-dated educational environments and safety and structural concerns – will be rebuilt. Three high schools and five elementary and K-8 schools will be rebuilt and modernized, so PPS students have the same technology, equipment and up-to-date learning environments as students in neighboring school districts with newer buildings. The schools are Cleveland, Jefferson and Roosevelt high schools, and Faubion, Laurelhurst, Markham, Marysville and Rigler elementary and K-8 schools. In addition, Lincoln will undergo comprehensive planning and design to prepare it for rebuilding in the next voter-approved bond. To lower costs and save taxpayer funds, debt will be retired on funds borrowed to complete Rosa Parks School and the nine school roofing projects completed in 2009 that included seismic upgrades and solar energy collection. ***** 9. What will the initial proposed construction bond cost me? This bond will raise $548 million for classroom, safety and security improvements at every school in the district over six years. The typical homeowner would pay about $300 a year, or about $25 per month. The proposed bond’s rate – approximately $2 per $1,000 of taxable assessed value – is in the middle of the rates voters approved in neighboring school districts, which range from about $1 to over $4 in some school districts. Portland Metro Area School Districts FACILITIES BOND RATE Gladstone $4.54 Sherwood $4.07 Forest Grove $3.53 In the Matter of Sarah Ames , OAH Case No. 1102579 Page 4 of 103 West Linn-Wilsonville $2.97 Riverdale $2.85 Hillsboro $2.61 Corbett $2.55 Canby $2.31 Oregon Trail $2.27 Centennial $2.26 Beaverton $2.09 North Clackamas $2.08 David Douglas $1.61 Oregon City $1.41 Tigard-Tualatin $1.38 Reynolds $1.13 Parkrose $1.08 Gresham Barlow $1.06 Lake Oswego $1.04 Portland Public Schools $0.00 AVERAGE $2.25 The median home in the Portland Public Schools district is worth $277,700 (Real Market Value) and is taxed at a value of $147,500 (Taxable Assessed Value). Half of the homes are worth more, half less. To calculate your own cost, multiply the Taxable Assessed Value (TAV) on your bill by $2 and then divide by 1,000. That’s the approximate annual rate; if you pay monthly escrow, divide by 12 for your monthly cost. Portland Public Schools’ taxes are just over a quarter of local property tax bills, 27 percent. Although overall property tax rates are higher in Portland than in surrounding areas, which is due to other government authorities’ tax rates, as [sic] school property taxes are lower.
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