1986-06133-Minutes for Meeting May 15,1985 Recorded 4/2/19864r
S6-• 6133
DESCHUTES COUNTY BOARD OF COMMISSIONERS
REGULAR MEETING MAY 15, 1985
Vu� 71 FnuE532
Chairman Tuttle called the meeting to order at 9:00 a.m.
Commissioner Prante was present, Commissioner Maudlin was
absent; Rick Isham, Legal Counsel was also present.
Amendments to Chairman Tuttle read aloud the amendments
the Agenda to the agenda.
Signature of Order MOTION: PRANTE moved to sign Order No.
No. 85-071, 85-071, Zurflueh Redemption of
Zurflueh Redemp- of Property.
tion of Property TUTTLE: Second.
and Signature of VOTE: UNANIMOUS APPROVAL.
Bargain and Sale
MOTION: PRANTE moved to sign the Bargain
and Sale Deed to Lyle and Nancy
Zurflueh subject to paying
$1,180.52.
TUTTLE: Second.
VOTE: UNANIMOUS APPROVAL.
Public Hearing
Chairman Tuttle re -opened the Public Hearing
Regarding Esta-
Regarding Establishing County Fees.
blishing County
Fees
Mr. Isham stated that a copy of the scheduled
fees has been circulated to departments
for review; however, has not been returned
for finalization.
25-—► ,
MOTION: PRANTE moved to continue the
hearing . on the establishment of
'_.
County fees until May 29, 1985 at
r" >�
9:00 a.m.
TUTTLE: Second.
�-
VOTE: UNANIMOUS APPROVAL.
J -Bar -J Boys
Ken Dalton, Director of J Bar J Boys Ranch,
Ranch Presentation
presented an update of the shelter evaluation
program to the Board. He stated that this
program is an alternative to detention.
Mr. Dalton stressed the need for this
program, stating that the nearest detention
center is in Klamath Falls, which proves to
be very costly in terms of transporting youth
to that center.
PAGE ONE - MINUTES 5/15/85
Request for
Temporary Permits
to Operate a
Retail Lumber
Yard at South-
west Corner of
Highway 97 and
Cooley Road
Consideration of
Fee Waiver of
Building Permit
Application Plan
Check and Inspec-
tion Fee for
Proposed Remodeling
of Sisters City Hall
Consideration of
Fee Waiver for
New Sign Applica-
tion for the
Humane Society of
Central Oregon
Consideration of
Fee Waiver for
Electrical Permit
for Special Road
District No. 1
Consideration of
Personal Services
Contract with the
University of Oregon
for River Study
Activities
Signature of
Personal Services
Contract with
COCAAN for the
Needs Assessment
Services
von 71 Fact 533
Commissioner Prante stated that the program
is filling a need that has not been met in
the community and that it is a money -saving
program as well.
MOTION: PRANTE moved to grant the temporary
permit for Henry A. Turcott.
TUTTLE: Second.
VOTE: UNANIMOUS APPROVAL.
MOTION: PRANTE moved to grant the fee
waiver for the building permit
application except for those
portions of any fees that must be
remitted to the State
TUTTLE: Second.
VOTE: UNANIMOUS APPROVAL.
MOTION: PRANTE moved to grant the fee
waiver for the Humane Society.
TUTTLE: Second.
VOTE: UNANIMOUS APPROVAL.
MOTION: PRANTE moved to grant the fee
waiver for Electrical Permit
for Special Road District No. 1.
TUTTLE: Second.
VOTE: UNANIMOUS APPROVAL.
MOTION: PRANTE moved to sign the Personal
Services Contract with the Univer-
sity of Oregon for River Study
Activities.
TUTTLE: Second.
VOTE: UNANIMOUS APPROVAL.
MOTION: PRANTE moved to sign the Personal
Services Contract with COCAAN for
the needs asessment services.
TUTTLE: Second.
VOTE: UNANIMOUS APPROVAL.
PAGE TWO - MINUTES 5/15/85
VCS �a,'_E534
Signature of Order MOTION: PRANTE moved to sign Order No. 85 -
No. 85-070, for
070.
the Sale of Certain
TUTTLE: Second.
Property Acquired
VOTE:
UNANIMOUS APPROVAL.
by Deschutes County
Signature of Reso-
MOTION:
PRANTE moved to sign Resolution No.
lution No. 85-017
85-017, setting the hearing date
Accepting a Petition
for June 26, 1985 at 7:30 p.m.
to Vacate a Portion
and signature of Order No. 85 -
Old Burgess Road,
069.
and Order No. 85-069,
TUTTLE: Second.
Accepting the En-
VOTE:
UNANIMOUS APPROVAL.
gineer's Report
Signature of
MOTION:
PRANTE moved to sign the Personal
Personal Services
Services Contract with Silva Terra
with Silva Terra
Enterprises, Inc.
Enterprises, Inc.
TUTTLE: Second.
VOTE:
UNANIMOUS APPROVAL.
Signature of
MOTION:
PRANTE moved to sign the Bargain
Bargain and Sale
and Sale Deeds to Gaines W. Eddy.
Deeds to Gaines
TUTTLE: Second.
W. Eddy
VOTE:
UNANIMOUS APPROVAL.
Signature of
MOTION:
PRANTE moved to sign Order No. 85 -
Order No. 85-
063, Haston Redemption of Property
063, Haston Re-
and Signature of Bargain and Sale
demption of Property
Deed.
and Signature of
TUTTLE: ' Second.
Bargain and Sale
VOTE:
UNANIMOUS APPROVAL.
Deed
Signature of
MOTION:
PRANTE moved to appoint Mike
Letter Appointing
Rubens to Special Road District
Mike Rubens to
No. 6.
Special Road
TUTTLE: Second.
District No. 6.
VOTE:
UNANIMOUS APPROVAL.
Signature of
MOTION:
PRANTE moved to sign the Develop -
Development Agree-
ment Agreement for SP -84-47.
ment for SP -84-47
TUTTLE: Second.
VOTE:
UNANIMOUS APPROVAL.
Signature of
MOTION:
PRANTE moved to authorize Chair to
Military Department
sign the Military Department
Facility Lease
Facility Lease.
for use as a Voting
TUTTLE: Second.
Poll
VOTE: UNANIMOUS APPROVAL.
PAGE THREE - MINUTES 5/15/85
Voc 71 �gcE�35
Consideration and MOTION: PRANTE moved to appoint Randy
Appointment of Richardson to the Central Oregon
Randy Richardson Regional Housing Authority.
to the Central TUTTLE: Second.
Oregon Regional VOTE: UNANIMOUS APPROVAL.
Housing Authority
Other Staff/Public Mr. Jack Fuls requested a letter from
Concerns the Board of Commissioners to the Federal
Energy Regulatory Commission, indicating
their intent to allow Mr. Fuls to proceed
with his project.
Mr. Isham stated that he had spoke with
Mr. Fuls' attorney, Jerry Webb, last week.
Mr. Isham added that the letter will be
drafted and reviewed by the Board as soon as
Commissioner Maudlin returns.
After lengthy discussion, the Board concurred
that the letter would be reviewed and
discussed at the May 29, 1985 meeting.
Signature of Lease MOTION: PRANTE moved to sign the lease
between Hendrickson between Deschutes County and
and Deschutes County Emery D. Hendrickson Jr. for
for Storage of building materials.
Road Building TUTTLE: Second.
Materials VOTE: UNANIMOUS APPROVAL.
Signature of MOTION: PRANTE moved to appoint Don
Letters of Ap- Carlisle and William Jacques
pointing Two to Special Road District No. S.
Commissioners TUTTLE: Second.
to Special Road VOTE: UNANIMOUS APPROVAL.
District No. 8
The meeting was recessed until 1:30 p.m.
Chairman Tuttle reconvened the regular Board meeting at 1:30
p.m. Helen Rastovich explained that information was still
forthcoming regarding the purchase agreement for warrant sales.
Chairman Tuttle recommended that the meeting be recessed until
2:30 p.m.
Chairman Tuttle reconvened the regular Board meeting at 2:30
p.m.
PAGE FOUR - MINUTES 5/15/85
o•�
Vol 71 536
Consideration of Helen Rastovich, Deschutes County Treasurer,
Purchase Agreement reported that she had contacted three bank -
for Warrant Sale ing institutions for the purpose of acquiring
quotes on the sale of $1,500,000 in Warrant
vouchers. She stated that she has received
quotes from United States National Bank of
Oregon and First Interstate Bank (see
attached). Oregon Bank did not provide a
quote, however did respond with a letter of
engagement describing terms and conditions of
service (see attached).
Ms. Rastovich presented an overview of the
quotes
and
recommended that
contract be
awarded
to
First Interstate
Bank which
provided
the
lowest bid and best
proposal for
the sale
of
the Warrants.
MOTION: PRANTE moved to authorize County
Treasurer Helen Rastovich to enter
into a Warrant Purchase Agreement
or letter of acceptance with First
Interstate Bank.
TUTTLE: Second.
VOTE: TUTTLE: YES.
PRANTE: YES.
MAUDLIN: ABSENT.
The meeting was adjourned.
S COUNTY BOARD OF COMMISSIONERS
BAURENCE'-A. \TUTTLE, CHAI
LOIS BRISTOW PRANTE, COMMISSIONER
DICK MAUDLIN, COMMISSIONER
BOCC:kbw
85-102
PAGE FIVE - MINUTES 5/15/85
First
intte
Bank
May 15, 1985
First Interstate Bank
of Oregon, N.A.
Investment &
Funds Management Division
P. O. Box 3131
Portland, OR 97208
(503) 225 - 3861
Mrs. Helen Rastovich, Treasurer
DESCHUTES COUNTY
County Courthouse
Bend, OR 97701
Dear Helen:
0� 71 PACE 537
Thank you for your recent inquiry on behalf of Deschutes
County regarding issuance of $1,500,000 general obligation
improvement warrants. First Interstate Bank of Oregon
hereby offers to purchase warrants issued by the county,
subject to the following terms and conditions:
(1) The warrants will have an aggregate par value of
$1,500,000.00, will be dated as of their settlement
date, and will mature December 31, 1985 or on the
60th day following closing of the sale of Bancroft
Act improvement bonds issued to provide long-term
financing for the improvement projects for which the
warrants will be issued, whichever date occurs first.
If the 60th day following closing is not a business
day, the warrants will mature on the business day
next preceding. The county may not call the warrants
prior to maturity.
(2) The warrants will be issued under authority of ORS
287.502 - .515 and will therefore constitute limited
tax general obligations of Deschutes County, payable
from resources described in Sections 2 and 3 of
Resolution No. 85-015 and, if need be, from
available resources in the county's General Fund or
Road Fund.
(3) The warrants will bear interest at the stated rate of
5.50% per annum, payable at maturity, and calculated
on the basis of a 30 day month/360 day year. First
Interstate Bank will purchase the warrants at the
price of 99.60% of par. Net proceeds to the County
will therefore be $1,494,000.00. The warrants will
be typewritten in form, payable to bearer, and in
denominations of $25,000.00 each.
(4) The county further agrees to pay to the bank a
commitment fee of $1,500.00 in consideration of the
bank's agreement to provide financing. The
commitment fee is payable on or before May 24, 1985,
but in no event later than the settlement date for
the warrant financing.
Helen Rastovich
May 15, 1985
Page 2
VOL 71 FACE 538
(5) The county agrees to provide, at the time of
settlement and at its expense, an approving legal
opinion of recognized bond counsel stating that the
warrants have been validly authorized and issued,
that they are valid limited tax general obligations
of Deschutes County, and that interest on the
warrants is exempt from federal income tax and from
Oregon personal income tax. In connection with this
sale of warrants, the county need not furnish a
rating or a prospectus. However, the county agrees
to provide to the bank a copy of its 1984-85 audited
financial statement and its adopted 1985-86 budget as
each becomes available.
(6) The county and the bank will mutually determine the
date and place of settlement of the warrants.
Helen, I trust that these terms and conditions will be
acceptable to you and to the Board of County Commissioners.
Assuming a settlement date of May 24, 1985 and a maturity
date of December 31, 1985, and including the effects of the
bank's bid discount and commitment fee, the estimated net
interest expense to the county is $57,229.17 and the net
effective rate is 6.3295%. If you or members of your board
have questions or comments about the bank's proposal, please
let me know. First Interstate Bank of Oregon deeply
appreciates this opportunity to compete for the warrants of
the county.
Yours very truly,
'(`o11 `M��e 94_k, f ,
Thomas F. Mitchell
Vice President
VOL71 CALF - 539
UNITED STATES NATIONAL BANK OF OREGON
A Subsidiary of U.S. Bancorp
BEND BRANCH
102 OREGON AVENUE
P.O.BOX 911, BEND, OREGON 97709
HeAD O—ICK. CRTLANO
May 15, 1985
Helen Rastovich
Deschutes County Treasurer
Dear Helen
This letter is to.advise you that our interest rate on the 1.5 million
dollars warrants would be 7.25%.
You would receive 100% of the warrant, and we have no commitment fee.
Subject to approving legal opinion of county counsel, a maturity of
December 31, 1985 and subject to bank approval of documents.
Phase call me if you need additional information.
Your truly
Joe Martin
District Manager
OREGON
BANK
AN ORSANCO COMPANY
May 3, 1985
Ms. Helen Rastovich, Treasurer
Deschutes County
Deschutes County Courthouse
1164 N.W. Bond
Bend, Oregon 97701
Dear Ms. Rastovich:
vol, 71 PAGE 540
Thank you for taking the time to visit me in my office this
morning. I am pleased to present this engagement letter
describing the terms and conditions under which Deschutes
County ("the County") agrees to engage the services of
Oregon Bank ("the Underwriter") as financial advisor and
underwriter for certain improvement warrants.
Background
The County, by resolution of its Board of Commissioners, has
authorized the issuance of Limited Tax General Obligation
Improvement Warrants, Series 1985, for interim financing of
local improvement districts.
The Bank is in the business of providing advice with regard
to the preparation and issue of negotiable warrants.
Further, the Bank is in the business of purchasing warrants
in conjunction with its ongoing municipal bond underwriting
activity.
The County agrees to engage the Bank as financial advisor
and underwriter for the above named issue, subject to the
conditions set forth in this letter.
Services to be Provided by the Bank
1) Assist in planning and preparing projections of
cash flows, issue sizing, and marketing plans.
2) Provide co-ordination with Bond Counsel.
3) Prepare an Official Statement
4) Produce and distribute the Official Statement
The Oregon Bank
Investment Department
1001 S.W. 5th
P.O. Box 2715
Portland, Oregon 97208
503/796-2650
5) Negotiate in good faith
of the Warrants.
6) Print the Warrants
V01 71 wr 541
with the County for purchase
7) Close sale of the Warrants
8) Provide assistance with regard to investment of
Warrant proceeds.
Terms of the Engagement
♦. At such time as the County elects to issue the Warrants,
the Underwriter will negotiate in good faith with the County
to purchase the Warrants. Both the price and the Warrants'
interest rate will be subject to negotiation. The difference
between the price negotiated and the face amount of the
Warrants (i.e. the discount) shall represent the
Underwriter's compensation as well as reimbursement for all
Underwriter's costs related to the Warrant issue, save and
except for the following items which will be paid directly by
the County:
1) Bond Counsel fee
2) Local Counsel fee
3) Paying Agent fee, if required
4) Warrant printing fee
B. If the parties, after negotiation, cannot reach agreement
with regard to either the price to be paid by the
Underwriter for the Warrants or the interest rate which the
Warrants are to bear, the County may at any time immediately
terminate this engagement by written notice to the
Underwriter and use materials prepared by the Underwriter to
assist the County in selling warrants to another party.
While negotiating with the Underwriter for the sale of the
Warrants, the County shall have the right to contact other
parties to discuss alternatives in the market for the same
Warrants. However, the County shall not consummate a sale to ✓
any third party prior to termination of this engagement. If --
the County terminates the engagement and sells the Warrants
to another party, the County shall compensate the Underwriter —
for all actual out of pocket expenses incurred in the
preparation of the materials for issuance of the Warrants.
Compensated out of pocket expenses shall not exceed $ 2,500.'`
Engagement Letter - 2
,r .
vol 71 qac_ 542
C. The County will provide all materials and information
requested by the Underwriter and will provide assurance that
the information is accurate and fairly represents the current
status of the County and the improvement districts. If
agreement is reached and the County agrees to sell and the
Underwriter agrees to buy the Warrants, the County will
execute representation that no material facts were mis-stated
or omitted. The County will provide an Arbitrage Certificate
to Bond Counsel. Between the date of this engagement and the
closing of the sale, the County will inform the Underwriter
of any known development which would materially affect the
financial status of the County or the improvement districts.
If the terms set forth above meet with your approval, please
sign the enclosedcopy of this letter and return it to our
office.
We are prepared to begin preparing for this transaction
immediately upon your acceptance of this letter. If you have
any questions or wish to dis=cuss any aspect of this
engagement letter in detail, please do not hesitate to
contact Daniel Anderson, Vice President, at (503) 796 2655.
Yours veryQ truly,
Daniel Anderson
Vice President - Public Finance
Acknowledged for Deschutes County:
(by)
(title)
(date)
Engagement Letter - 3