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1990-05465-Minutes for Meeting February 28,1990 Recorded 2/28/19901595 90-054C5 MICROFILM MINUTES MAR 9~ DESCHUTES COUNTY BOARD OF COMMISSIONERS vllt1 February 28, 1990 Chair Throop opened the meeting at 10 a.m. Board ref=i-` attendance were Dick Maudlin, Tom Throop and Lois Bristow Prante. Also present were Bruce White, Assistance Legal Counsel. 1. CONSENT AGENDA Consent agenda items before the Board were: #1, signature of Access Management Agreement with the State Highway Division and the City of Bend concerning the Bend Expressway;, #2, acceptance of Declaration of Dedication for Trujillos; #3, acceptance of declaration of dedication from the Moyers; #4, signature of Order 90-027 designating the Bulletin as the newspaper for notification of address and road name changes; #5, signature of Resolution 90-012 allowing customers to ride in Community Development Department vehicles; #6, signature of Consent to Sell E-1/2 of old County Shop property subject to County's Trust Deed; #7, signature of MP-89-29 and acceptance of Declaration of Dedication for Spectrum Properties; #8, reappointment of Paul Gayral to Newberry Estates Special Road District Board of Directors; #9, signature of MJP-89-3 for Brian Opdyeke and acceptance of Declaration of Dedication from Margaret Turner; #10, signature of MJP-89-4 and subdivision plat for Lee Moriarty; #11, signature of Resolution 90-017 approving Deschutes County Rural Fire Protection District No. 2 Fire Prevention Code. MAUDLIN: Move consent agenda. PRANTE: Second. VOTE: PRANTE: YES THROOP: YES MAUDLIN: YES 2. PUBLIC HEARING: GRANT APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR LAPINE SEWER EXPANSION Commission Throop opened the public hearing. Mike Burton, COIC, reported that this public hearing was a requirement of the Community Development Block Grant Program. He said the purpose of the public hearing was to accept testimony on the Lapine Sewer Expansion application. He made available the attached information on the County's past performance on block grant applications, estimated funds available statewide, mitigation of impact on displaced persons, and a summary of eligible and ineligible activities. PAGE 1 MINUTES: 2/28/90 1,596 Commission Throop pointed out that the total costs of the project cost were $19,800 of which $13,800 was being requested from Community Development Block Grant Funds, $3,000 from Deschutes County, and $3,000 was coming from the LaPine Special Sewer District. He said the County's contribution would probably come from the Industrial Development account. Commission Prante said she would be in favor of that. Mike Burton said the Board of Commissioners had held a public hearing two weeks ago to consider projects for Block Grant application. The LaPine Special Sewer District submitted a proposal for a Technical Assistance Grant relating to an extension of the sewer district. It was the only proposal submitted. The intent of the proposal was to extend the existing LaPine Sewer District out to Wickiup Junction on the North of LaPine, to the County-owned Industrial Park to the east of town, and to an area east of the core residential area. Before that work could proceed there needed to be a engineering study to determine the different alternatives, the costs of those alternatives, and to make recommendations. The Technical Assistance Grant would be used to fund a facilities plan update and a preliminary engineering report so that the District could apply for construction grants or loans to finish the engineering and construction work. The requested $13,800 include $12,600 for the project with $1,200 for grant administration with the remainder of the grant administration costs being borne by the County. No one else from the audience wished to testify so Chair Throop closed the public hearing. PRANTE: I'll move signature of the application. MAUDLIN: Second. VOTE: PRANTE: YES THROOP: YES MAUDLIN: YES 3. PUBLIC HEARING: APPLICATION FOR COUNTY FAIRS AND SPECIAL EVENTS GRANT TO EXPAND COUNTY FAIR FACILITIES Chair Throop opened the public hearing. Mike Burton, COIC, reported that this public hearing was required before an application could be submitted to the Economic Development Department through the County Fairs and Special Events Program. He said the Deschutes County Fairgrounds was regarded to be overcrowded. The Fair Board had decided to remedy that situation by removing the race track and expanding the Deschutes County Fair into the vacated area which would double the usable space. This would also make the parking PAGE 2 MINUTES: 2/28/90 I o u - :1597 area beyond the old race track close enough for use during the fair. This expansion would enable the use of the existing fair grounds for 10-20 more years. The requested fund would be used to install electrical service lighting and to fence the area to control access during events and for security all year. He said the Fair Board had $26,250 to apply to the project, and the grant application was requesting $40,800 for a total of $67,050. No one else from the audience wished to testify, so Chair Throop closed the public hearing. PRANTE: I'll move signature of the application for Fair. MAUDLIN: Second. VOTE: PRANTE: YES THROOP: YES MAUDLIN: YES 4. PURCHASE OF SISTERS TRANSFER STATION PROPERTY This item was postponed one week. 5. HOUSING CONDITIONS SURVEY AND MARKET STUDY This item was postponed one week. 6. WEEKLY WARRANT VOUCHERS Before the Board were weekly bills in the amount of $72,833.26. PRANTE: Move approval upon review. MAUDLIN: Second. VOTE: PRANTE: YES THROOP: YES MAUDLIN: YES 8. LAPINE SEWER PROJECT CLOSE OUT REPORT Before the Board was a request to approve the Close Out Report for the LaPine Sewer Project subject to review. MAUDLIN: I would move that we close out the report for the LaPine Sewer Project subject to review. PRANTE: Second. PAGE 3 MINUTES: 2/28/90 1.00 - 1598 VOTE: PRANTE: YES THROOP: YES MAUDLIN: YES Chair Throop continued the meeting until 11 a.m. DESCCHUTES COUNTY BOARD OF COMMISSIONERS Lois i;stow Prante, Commissioner Thro , Chair Dick Maudlin, Commissioner BOCC:alb PAGE 4 MINUTES: 2/28/90 JAU - 15 9 9 Information on the Oregon Community Development Block Grant Program and Deschutes County's Participation in that Program It is a requirement of the Oregon Community Block Grant Program (OCDBG) to make available the following information as part of any application to the program for funds. Past Activities and Performance of Deschutes County Deschutes County has applied for grant funds from the OCDBG on four previous occasions. 1) The first application was a $300,000 Economic Development grant in 1983. The grant enabled the county to offer loans to Morelock Wood Products of Bend; to D&S Hydraulics, also of Bend; and to Acu-Edge of Redmond. The loans were matched by $758,500 of funds provided by non-governmental sources. The loans triggered the creation of 157 new jobs (more than 1/2 of which went to persons of low or moderate income) and loan repayment proceeds funded the Deschutes County Business Development Loan Fund which continues to fund similar projects. That grant has been closed out by the State and County as having accomplished objectives. 2) The second grant was a technical assistance grant for $10,000 for the development of a facilities plan for the LaPine Sewer District and preliminary engineering prior to pursuing construction grants. The grant was matched by $11,448 in funds provided by the LaPine Special Sewer District. The project benefitted 112 people, 77% of whom were of households with low or moderate income. The grant has been closed out by the State and the County as having accomplished its goals. 3) The third grant was an economic development grant of $500,000 which enabled the county to fund a loan to Consep Membranes of Bend. The loan was matched by $1,228,120 in non-governmental funds. The loan was to have created 44 jobs, of which 23 or more would have gone to people of low or moderate income. Repayment proceeds have been added to the Deschutes County Business Development Loan Fund and further loans made to fund similar projects. Consep has not yet been able to create the promised jobs and the grant has not yet been closed out. 4)The fourth grant was for $328,700 to fund part of the construction of the LaPine sewer system. The total project cost was $2,053,860. The project directly benefitted 213 people, 77% of whom were of low or moderate income. The project has been recently completed and the county has initiated the close out process. The project did accomplish its goals and the State should close it out soon. Estimated Funds Available Statewide It is estimated by the Oregon Economic Development Department that $12 million will be available statewide for the program. These funds may be used to fund projects falling into the following general categories and funds allocated by general area are also listed. Community Development and Housing Uses Public Works $5,200,000 Housing 2,100,000 Community Facilities 1.700.000 Subtotal $9,000,000 Other Uses Economic Development $1,100,000 Imminent Threat 300,000 Regional Strategy Projects 1,000,000 Technical Assistance 200,000 State Administration 400,000 Sub Total $3,000,000 TOTAL $12,000,000 A more detailed break out of eligible uses of funds is available here today on a handout. All of the funds with the exception of the State Administration Funds are available to assist people of low or moderate income. At least 60% of the funds will benefit people of low or moderate income. 100 :1600 Deschutes County is eligible to apply for one grant from any of the first three categories up to a limit of $500,000. It may also apply for one technical assistance grant for up to $20,000. In addition, the County may apply for up to two Economic Development grants totaling not more than $500,000. The county is willing to assist parties with eligible projects in developing proposals. The only eligible project ready to proceed at this time is the technical assistance project for the preliminary engineering related to the LaPine sewer. Mitigation of Impact on Displaced Persons The County does not expect any persons to be displaced as a result of this project. The product of the technical assistance proposal would not produce any displacement. Further, the County does not expect a construction project which might follow to produce any displacement. Any persons who might be displaced or even threatened with displacement are encouraged to contact the County now. Their input will be used in developing a plan to minimize any such displacement. 4 . I . IOU - 1601 Appendix B Summary of Eligible and Ineligible Activities 1. Eligible Activities (6) payments to housing owners for losses of rental income incurred in holding for tempo- Source: Section 105 of Title 1 of the Housing and rary periods housing units to be utilized for Community Development Act of 1974,asamended the relocation of individuals and families dis- through 1987 placed by activities under this program; Section 105(a) Activities assisted under this title may include only: (1) the acquisition of real property (includ- ing air rights, water rights, and other interest therein) which is (A) blighted, deteriorated, deteriorating, undeveloped, or inappropri- atelydeveloped from thestandpointof sound community development and growth; (B) ap- propriate for rehabilitation or conservation activities; (C) appropriate for the preserva- tion or restoration of historic sites, the beau- tification of urban land, the conservation of open spaces, natural resources, and scenic areas, the provision of recreational opportu- nities, or the guidance of urban develop- ment; (D) to be used for the provision of public works, facilities, and improvements eligible for assistance under this title; or (E) to be used for other public purposes; (2) the acquisition, construction, reconstruc- tion, or installation (including design fea- tures and improvements with respect to such construction, reconstruction, or installation that promote energy efficiency) of public works, facilities (except for buildings for the general conduct of government), and site or other improvements; (3) code enforcement in deteriorated or de- teriorating areas in which such enforcement, together with public improvements and serv- ices to be provided, may be expected to ar- rest the decline of the area; (4) clearance, dernolition, removal, and reha- bilitation (including rehabilitation which promotes energy efficiency) of buildings and improvements (including interim assistance, and financing public or private acquisition for rehabilitation, and rehabilitation of pri- vately owned properties and including the renovation of closed school buildings); (5) special projects directed to the removal of material and architectural barriers which restrict the mobility and accessibility of eld- erly and handicapped persons: (7) disposition (through sale, lease, dona- tion, or otherwise) of any real property ac- quired pursuant to this program or its reten- tion for public purposes; (8) provisions of public services, including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, energy con- servation, welfare or recreation needs, if such services have not been provided by the unit of general local government (through funds raised by such unit, or received by such unit from the State in which it is located) during any part of the twelve-month period immedi- ately preceding the date of submission of the statement with respect to which funds are to be made available under this program, and which are to be used for such services, unless the Secretary finds that the discontinuation of such services was the result of events not within the control of the unit of general local government, except that not more than 15 per centum of the amount of any assistance to a unit of general local government under this title may be used for activities under this paragraph "unless such unit of general local government used more than 15 percent of the assistance received under this title for fiscal year 1983 for such activities (excluding any assistance received pursuant to Public Law 9"), in which case such unit of general local government may use not more than the per- centage or amount of such assistance used for such activities for such fiscal year, which- ever method of calculation yields the higher amount"; (9) payment of the non-Federal share required in connection with a Federal grant-in-aid pro- gram undertaken as partof activities assisted under this title; (10) payment of the cost of completing a project funded under Title 1 of the Housing Act of 1949; (11) relocation payments and assistance for displaced individuals, families, businesses, organizations, and farm operations, when deteriuincdbythegranteetoheappropriate, 1990 Applicant's llruulbook 31 Appendix B J 0 U m 16 0 2 (12) activities necessary (A) to develop a dwelling in which the facilities are shared comprehensive community development with others in a manner that effectively and plan, and (B) to develop a policy-planning- efficiently meets the housing needs of the management capacity so that the recipient of residents and thereby reduces their cost of assistance under this title may more ration- housing; ally and effectively (i) determine its needs, (ii) set long-term goals and short-term objec- (16) activities necessary to the development tives, (iii) devise programs and activities to of energy use strategies related to recipient's meet these goals and objectives, (iv) evalu- development goals, toassure that thosegoals ate the progress of such programs in accom- areachievedwith maxim umenergy efficiency plishing these goals and objectives, and (v) , including items such as: carry out management, coordination, and monitoring of activities necessary for effec- (A) an analysis of the manner in and the tive planning implementation; , extent to, which energy conservation (13) payment of reasonable administrative objectives will be integrated into local costs and carrying charges related to the government operations, purchasing and service delivery, capital improvements planning and execution of community devel- budgeting, waste management district opment and housing activities, including the , heating and cooling, land use planning provision of information and resources to and zoning, and traffic control parking residents of areas in which communftydevel- , and public transportation functions; opment and housing activities are to be concentrated with respect to the planning (B) a statement of the actions the com- and execution of such activities, and includ- munity will take to foster energy conser- ing the carrying out of activities as described vation and the use of renewable energy in section 701 (e) of the HousingAct of 1954 on the date prior to the date of enactment of the resources in the private sector, includ- Housing and Community Development ing the enactment and enforcement of local codes and ordinances to encourage Amendments of 1981; or mandate energy conservation or use (14) activities which arecarried out bypublic of renewable energy resources, financial or private nonprofit entities, including (A) and other assistance to be provided (prin- cipally for the benefit of low-and moder- acquisition of real property; (B) acquisition, ate-income persons) to make energycon- construction, reconstruction, rehabilitation, or installation of (i) public facilities (except serving improvements to residential , for buildings for the general conduct of gov- structures, and any other proposed ernment) site improvements, and utilities, energy conservation activities; and (ii) commercial or industrial buildings or (17) provision of assistance to private for- structures and other commercial or indus- , profit entities, when the assistance is neces- trial real property improvements; and (C) planning; saryor appropriate tocarryout an economic development project; (15) assistance to neighborhood-based non- profit organizations, local development cor- poration, or entities organized under section 301(d) of the Small Business Investment Act of 1958 to carry out a neighborhood revitali- zation or community economic development or energy conservation project in further- ance of the objectives of section 101(c) in- cluding grants to neighborhood-based non- profit organization, or other private or public nonprofit organizations, for the purpose of assisting, as part of neighborhood revitaliza- tion or other community development, the development of shared housing opportuni- ties (other than by construction of new facili- ties) in which elderly families (as defined in section 3(b)(3) of the United States Housing Act of 1937) benefit as a result of living in a (18) the rehabilitation or development of housing assisted under section 17 of the United States Housing Act of 1937; and (19) Provision of assistance to facilitate substantial reconstruction of housingowned and occupied by low and moderate income persons (A) where the need for the recon- struction was not determinable until after re- habilitation under this section had already commenced, or (B) where the reconstruc- tion is part of a neighborhood rehabilitation effort and the grantee (i) determines the housing is not suitable for rehabilitation, and (ii) demonstrates to the satisfaction of the Secretary that the cost of substantial recon- struction is significantly less than the cost of new construction and less than the fair mar- 32 1990 Applicant's Handbook 100 - 1603 Appendix B ket value of the property after substantial re- construction. (C)(1) Upon the request of the recipient of assistance under this title, the Secretary may agree to perform administrative services on a reimbursable basis on behalf of such recipi- ent in connection with loans or grants for the rehabilitation of properties as authorized under subsection (a)(4). In any case in which an assisted activity described in paragraph (14) or (17) of sub- section (a) is identified as principally benefit- ting persons of low and moderate income, such activity shall: moderate income; and (iii) other Federal funds received by the grantee are not available for the develop- ment, establishment, and operation of such system due to the insufficiency of the amount of such funds, the restric- tions on the use of such funds, or the priorcommitmentofsuch funds for other purposes by the grantee. The percent- age of the cost of the development, es- tablishment, and operation of such a sys- tem that may be paid from assistance under this title and that is considered to benefit low and moderate income per- sons is the percentage of the population to be served that is made up of persons of low and moderate income. (A) be carried out in a neighborhood consisting predominately of persons of low and moderate income and provide services for such persons; or (B) involve facilities designed for use predominately by persons of low and moderate income; or (C) involve employment of persons, a majority of whom are persons of low and moderate income. (2)(A) In any case in which an assisted activ- ity described in subsection (a) is designed to serve an area generally and is clearly de- signed to meet identified needs of persons of low and moderate income in such area, such activity shall be considered to principally benefit persons of low and moderate income if (i) not less than 51 percent of the residents of such area are persons of lowand moderate income; or (ii) in any metropolitan city or urban county, the area served bysuch activ- ity is within the highest quartile of all areas within the jurisdiction of such city or county in terms of the degree of concentration of persons of low and moderate income. (B) The requirements of subparagraph (A) do not prevent the use of assistance under this title for the development, establishment, and operation for not to exceed 2 years after its establishment of a uniform emergency telephone number system if the Secretary determines that- (i) such system will contribute substan- tially to the safety of the residents of the area served by such system: (ii) riot less than 51 percent of the use of the system will be persons of low and (3) Any assisted activity under this title that involves the acquisition or rehabilitation of property to provide housing shall be consid- ered to benefit persons of low and moderate income only to the extent such housing will, upon completion, be occupied by such per- sons. II. Supplementary Information Three types of activities which are eligible under cer- tain circumstances include: A. Rental Rehabilitation Program Administra- tion Costs Administration costs related to carrying out a Rental Rehabilitation Program (RRP) grant are an eligible activity. B. 9-1-1 Emergency Telephone Systems OCDBG funds may be used for a 9-1-1 activity provided all of the following are met: 1. The assistance will be to develop, estab- lish and operate a system which is not already in operation at the time the appli- cation is made. 2. 9-1-1 assistance is considered to be a public service activity. Therefore, the funds requested for the 9-1-1 project must be limited to no more than 15% of an ap- plicant's total grant request. In other words, the 9-1-1 activity may not be the primary purpose of an OCDBG applica- tion. 1990 Applicant's Handbook 33 Appendix B 3. To meet a national objective, at least 51 % of the use of the system must be by low and moderate income persons. If the 9-1-1 activity will serve an area with 51 % or more low and moderate income per- sons, the activity meets a national objec- tive. Where the service area is less than 51 % low and moderate income, the appli- cant must demonstrate that at least 51% of the use will be by persons of low and moderate income. Contact your OCD projectmanager for more information about how to document the income of system users. 4. The Portland Area Office of the U.S. Department of Housing and Urban Devel- opment must provide written approval of the 9-1-1 activity prior to the state committing funds to the applicant. , C. Activities to Support Affordable Housing OCDBG funds have traditionally been used to improve community housing stock and revi- talize neighborhoods through residential rehabilitation projects. Cities and counties may also use OCDBG funds to increase the supply of affordable housing units through a number of ap- proaches including but not limited to the following: 1. New housing construction by eligible subrecipients • neighborhood based non-profit cor- porations • small business investment compa- nies • local development corporations 2. Activities to reduce the cost of private development • acquisition of sites • clearance of sites • site improvements • payment of soft costs 3. Activities to facilitate private develop- ment • construction or reconstruction of utilities • street improvements 34 100 - 1604 ' 4. Conversion of existing structures for housing • convert non-residential structure • acquisition for rehabilitation • acquisition of housing units (pro- vided units are not newly con- structed) to be leased or sold for residential purposes 5. Housing counseling (subject to 15% public service limitation) • pre-purchase counseling • Homeownership counseling • Renter counseling • Emergency housing counseling • Shared housing opportunities 6. Fair Housing Activities (subject to 15% public service limitation) • Outreach counseling and referral • Fair housing counseling • Information programs The above examples of eligible housing activities are taken from HUD Notice CPD- 89-14 "Use of Community Development Block Grant Funds in Support of Hous- ing". Copies of the HUD notice are avail- able from OCD. III. Ineligible Activities Source: Code of Federal Regulations (CFR) Title 24, Part 570.207. The following activities are not eligible for assistance undermost circumstances. This list should be viewed as a general, illustrative guide. It does not contain all ineligible activities. A. General Purpose Government Buildings Buildings, or portions thereof, used predomi- nantlyforthegeneral conduct of government cannot be assisted with Community Develop- ment funds. Such buildings include, but are not limited to, city halls, and other headquar- ters of government where the governing body of the recipient meets regularly, courthouses, jails, police stations, and other state or local government office buildings. This does not exclude, however, the removal of architec- tural barriers and historic preservation in- volving any such building. Also, where ac- quisition of real property includes an exist- ing improvement which is to be used in the 1990 Applicant's Handbook 10-U - 1605 Appendix B provision of a building or facility for the gen- eral conduct of government, the portion of the acquisition cost attributable to the land is eligible. B. Purchase of Equipment The purchase of equipment with grant funds is generally ineligible. The exceptions to this are described below: 1. The purchase of construction equipment is ineligible. An exception is the purchase of construction equipment which is used as a part of a solid waste disposal facility which is eligible for grant assistance. Furnishings and personal property - the purchase of equipment, fixtures, motor vehicles, or furnishings, or other per- sonal property which is not an integral structural fixture is ineligible, except when necessary for use by a recipient in the ad- ministration of its Community Develop- ment program, or as a part of an eligible public service activity. A business receiving a loan from an Eco- nomic Development grantee may pur- chase equipment as permitted under the terms of its loan agreement with the grantee. C. Operating and Maintenance Expenses The general rule is that any expense associ- ated with operating, maintaining, or repair- ing public facilities and works, or any ex- pense associated with providing public serv- ices not assisted with grant funds is ineligible for assistance. However, operating and main- tenance expenses associated with providing public services or interim assistance other- wise eligible may be assisted. Examples of activities which are not eligible for grant as- sistance are: I . Maintenance and repair of streets, parks, playgrounds, water and sewer facilities, neighborhood facilities, senior centers, centers for the handicapped, parking and similar public facilities; 2. Payments of salaries for staff,utilitycosts, and similar expenses necessary for the operation of public works and facilities; Expenses assocaiated with the provision of any public service which is not eli- gible for assistance. 1990 Applicant's Handbook D. General Government Expenses Expenses required to carry out the regular responsibilities of the unit of general local government are not eligible. E. Political Activities No expenditure may be made for: the use of equipmentor premises for political purposes; sponsoring or conducting candidates' meet- ings, engaging in voter registration activity or transportation; or other partisan political activities. E New Housing Construction Assistance may not be used for the construc- tion of a new permanent residential structure or for any program to subsidize or finance such new construction. Activities in support of the development of low or moderate in- come housing including clearance, site as- semblage, provision of public improvements, and certain housing preconstruction costs are not considered as subsidizing or financ- ing new residential construction. G. Income Payments The general rule is that assistance may not be used for income payments for housingor any other purpose. Examples of ineligible in- come payments include payments for in- come maintenance, housing allowances, down payments, and mortgage subsidies for the purchase of a house. 35