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1993-45710-Order No. 93-225 Recorded 12/16/199393-45'710 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF An Order Approving the Petition for Incorporation of the Proposed City of Sunriver, Calling an Election Thereon and Adopting Findings and Conclusions and Prescribing an Effective Date. ORDER NO. 93-225 REVIEWED L Gg COUNSEL DESCHUTES COMPY, OREGON n 0128-1011 WHEREAS, a petition for incorporation of a new City of Sunriver has been filed pursuant to ORS Chapter 221; and WHEREAS, ORS 221.040(2) provides that, upon the filing of a petition for incorporation, the Deschutes County Board of Commissioners shall conduct a public hearing upon the merits of the petition; and WHEREAS, ORS 197.175(1) makes the Board's consideration of a petition to incorporate a new city an exercise of County planning and zoning responsibility; and WHEREAS, ORS 221.040(2) authorizes the Board to alter the boundaries of the proposed city to include all territory that may be benefitted by the formation of the city but must first provide owners and residents of property within such additional territory notice and opportunity to present evidence and argument on the applicable issues; and WHEREAS, the Board, upon notice duly given, conducted the required public hearing on the proposed petition on October 27, 1993; and WHEREAS, the Board closed the oral record after taking testimony on October 27, 1993, and held the written record open for all participants through 4:30 p.m. on November 3, 1993; and WHEREAS, the Board has now considered all of the written and oral testimony and argument submitted concerning the proposed incorporation; and WHEREAS, the Board determined that no additional territory would be benefitted by the proposed city and the petition should be granted; and WHEREAS, the Board announced their tentative decision on the petition on November 10, 1993, and adopted Resolution 93-106 setting forth the tentative decision and directing the development of findings of fact in support of the tentative decision; now, therefore THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDERS as follows: 1 - ORDER NO. 93-225 (12/15/93) 0128-1012 Section 1. That the petition for the proposed city of Sunriver is hereby approved. Section 2. In support of the decision set forth in Section 1 of this order, the Board makes the findings and conclusions set forth in Exhibit "A," attached hereto and by this reference incorporated herein. Section 3. That this decision shall become effective on December 20, 1993, the date it shall be mailed to the chief petitioners and other parties to this proceedings. Section 4. That the election relating to the incorporation of the proposed City of Sunriver shall be held on May 17, 1994, within the boundaries of the proposed city. This election is to be held on the date specified herein which is the next regular statewide primary election that is not sooner than 90 days after the date of this order. The exterior boundaries of the proposed City of Sunriver as herein approved are as described in Attachment A of Exhibit A, hereto which is incorporated herein by this reference. Section 5. The County Legal Counsel is directed to prepare the ballot title for the election ordered in Section 4 above and to include in the ballot title a description of the boundaries of the proposed City of Sunriver using streets and other generally recognized features and a statement of the tax base and tax rate included in the petition for incorporation of the proposed City of Sunriver in compliance with the requirements of ORS 310.402. The measure shall be submitted to the County Clerk on or before January 3, 1994. Section 6. At the election ordered in Section 4 of this Order, five city council members shall be elected. The County Legal Counsel shall prepare a notice of city council election. The notice shall be filed with the County Clerk on or before January 3, 1994. DATED this 15th day of December, 1993. BOARD O COUNTY COMMISSIONERS OF DE_S2 UTES COUNTY, OREGON .i��. • i • a a;=iiia`"N, ommIstionetr 2 - ORDER NO. 93-225 (12/15/93) 0128-1013 EXHIBIT "A" BOARD OF COUNTY COMMISSIONERS RE: PETITION FOR THE INCORPORATION ) FINDINGS IN SUPPORT OF OF SUNRIVER ) ORDER GRANTING PETITION APPLICANT: Sunriver Incorporation Committee, Vince J. LePore, Jr. and Charles Cusack, Co -Chairs Vince J. LePore, Jr. and Clifton H. Jones, Chief Petitioners (hereafter jointly called Petitioners) INTRODUCTION This matter came before the Deschutes County Board of County Commissioners on a Petition for the Incorporation of the City of Sunriver filed by Vince J. LePore, Jr. and Clifton H. Jones, Chief Petitioners. ORS 221.020 provides authority for the residents of an area, no part of which lies in an incorporated city and in which 150 persons reside, to seek to incorporate a city. Pursuant to ORS 221.031, a petition for incorporation in a form prescribed by rule of the Secretary of State must be filed with the county clerk prior to circulating a petition to incorporate any unincorporated territory as a city. The required contents of a petition for incorporation are set out in ORS 221.031(2). The petition must designate the name and address of no more than three persons as chief petitioners, all of whom must be electors and residents within the boundaries of the proposed city. It shall contain the name of the proposed city. Further, "the petition shall also include a proposed tax base sufficient to support an adequate level of municipal services and a declaration of the rate of taxation necessary to raise an amount of revenue equal to the proposed tax base." The petition must also include a map indicating the exterior boundaries of the proposed city. ORS 221.035 requires that an economic feasibility statement ("EFS") must also be filed with the county clerk. The EFS "shall form the basis for the proposed tax base required by ORS 221.031(2)." It shall also contain: "(1) a description of the services and functions to be performed or provided by the proposed city; (2) an analysis of the relationship between those services and functions and other existing or needed government services; and 1 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1014 (3) proposed first and third year budgets for the new city demonstrating its economic feasibility." Once the prospective petition for incorporation and EFS have been filed, the county clerk may authorize the circulation of the petition to gather signatures. ORS 221.040 provides that the petition for incorporation can be filed with the county after it has been signed by at least 20 percent of the electors in the area proposed to be incorporated. ORS 221.040(2) provides that upon the filing of a petition for incorporation, the county court (in this case, the Board of County Commissioners) shall conduct a public hearing after proper notice. The purpose of the hearing is to enable the county to perform its duties, which are as follows: (1) to receive and consider any oral and written objections to the granting of the petition, the forming of the proposed incorporated city, or the estimated rate of taxation set forth in the petition. (2 ) to determine whether to alter the boundaries as set forth in the petition to include all territory which may be benefited by the formation of the proposed city. (3) to determine whether to modify the boundaries as set forth in the petition to exclude any territory which would not be benefited by the formation of the proposed city. (4) to determine whether the petition for incorporation and the EFS comply with the requirements of ORS chapters 221; and (5) to determine whether incorporation of the proposed city would be "in accordance with ORS chapters 196 and 197." Following the hearing on the petition, the Board of Commissioners may approve, reject, or modify the incorporation proposal in accordance with applicable standards and criteria. See ORS 221.040 (3). If the county approves the petition as originally presented or as modified, the county shall order an election upon the question of whether the proposed city shall in fact be incorporated. Application of statewide land use goals, county comprehensive plan, and implementing ordinances: Oregon's land use statutes, as interpreted by Oregon's appellate courts, define the responsibility of the County governing body in this proceeding, and, by extension, the nature and scope of the application of various state and local standards and criteria. 2 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1015 ORS 197.175 (1) explicitly makes county consideration of a petition to incorporate a new city an exercise of County planning and zoning responsibility. The statute requires that: "Cities and Counties shall exercise their planning and zoning responsibilities, including, but not limited to, a city or special district boundary change which shall mean the annexation of unincorporated territory by a city, the incorporation of a new city, and the formation or change of organization of or annexation to any special district . . . in accordance with ORS Chapters 196 and 197 and the goals approved under ORS Chapter 196 and 197" (emphasis added). ORS 197.190 (1) assigns to County governing bodies the responsibility to coordinate land use planning within their jurisdictions, as follows: "In addition to the responsibilities stated in ORS 197.175, each county, through its governing body, shall be responsible for coordinating all planning activities affecting land uses within the county, including planning activities of the county, cities, special districts, and state agencies, to assure an integrated comprehensive plan for the entire area of the county . . ." ORS 197.175 (2) requires cities and counties to adopt comprehensive plans and implementing ordinances in compliance with the statewide goals. ORS 215.130 ( 2 ) provides that, until a newly incorporated city adopts its own land use plan and implementing ordinances, the county's plan and ordinances continue to control land use within the city. ORS 197.757 requires cities incorporated after January 1, 1982, to have their comprehensive plans and land use ordinances acknowledged by the LCDC as consistent with state land use goals by no later than four years after the date of incorporation. These statutes envision an eventual transfer of land use planning authority to the city and the establishment of a separate, acknowledged city land use plan, with implementing ordinances, over a period not to exceed four years. Application of goals to incorporation petitions: The Oregon Supreme court has discussed this process and in so doing has provided useful guidance as to how the goals are to be applied to proposed city incorporation. In Part III of its decision in the Rajneeshpuram incorporation case, the Supreme Court explained that: 3 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1016 "The legislature deemed a county's decision in connection with a proposed incorporation a land use decision which must accord with 'the goals' without exception. We take this general mandate to mean that to the extent a county can conduct a meaningful inquiry as to all 19 goals, it must do so. A county's responsibility at the time it considers a petition for an incorporation election is no greater with respect to Goal 14 (urbanization goal) than with respect to the other goals. It is to determine the compatibility of incorporation and its consequences with the criteria stated in the goal. "Incorporation will authority for some o: planning authority. Ic may foreseeably af: responsibility. The incorporation to pr comprehensive plan bi that the legislature wish to offer their record for approval 4 they bear on future services that the projections about fu purposes assume or transfer to the city actual planning the land presently within the county's ome of the consequences of incorporation :ect land that remains the county's county cannot expect the proponents of asent a concrete or even a tentative sfore the election and we do not believe intended this, although proponents may own ideas for a plan in making their )f the proposed incorporation insofar as land use, such as the kind of municipal =ity is expected to provide and the ture population and tax base that these necessarily imply. The realism of the purposes and projections and the probable consequences for land use are, of course, open to challenge. "Although this task that ORS 197.175 assigns the counties may not be easy, there is no doubt that the legislature assigned it. We believe that it can be given a practical interpretation "The seven establishment factors of Goal 14 are designed to be considered in conjunction with the actual drawing of a proposed UGB. Nonetheless, under the test stated in Part II of this opinion, a county can determine whether it is reasonably likely that the newly incorporated city can and will consider and address the Goal 14 factors when the city eventually draws a proposed UGB, and whether it is reasonably likely that the city can and will ensure that future urbanization is appropriate and not incompatible with Goal 14 and the other goals." In Part II of its decision, referred to in the above paragraph, the Court said: "The goals are designed to be applied during a local government's preparation of a comprehensive plan, a process in which a county court's actions with regard to an incorporation petition are not normally a part. As a result, a county's consideration of the goals incident to an incorporation 4 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) petition differs from a city's or goals during the planning process proposed for specific parcels of 0128-101'7 county's application of the in which specific uses are land. it A county discharges its planning and zoning responsibilities with regard to whether a proposed incorporation is in accordance with the goals' if the county is satisfied that after a successful incorporation election it is reasonably likely that the newly incorporated city can and will comply with the goals once the city assumes primary responsibility for comprehensive planning in the area to be incorporated. The county's determination must be supported in the record like any other county land use decision. "1000 Friends of Oregon v. Wasco County Court, 299 Or 344, 360, 367- 68, 703 P2d 207 (1985). Application of county comprehensive plan and ordinances to incorporation petitions: ORS 197.175 (1) also requires counties to assure that land use decisions, including decisions approving, modifying, or denying petitions for incorporation comply with applicable provisions of comprehensive plans and land use ordinances. The Deschutes County Comprehensive Plan Goals and Policies implement the statewide goals. Like the Goals, the Plan's Goals and Policies apply with varying degrees of specificity to the proposed incorporation. For example, the Deschutes County Year 2000 Plan's Urbanization Goal. Other Goals and Policies in the same Chapter expand upon the Goal requirements by separately addressing related issues under the headings "Coordination", "Residential Development", "Commercial", "Industrial", "Community Appearance", "Urban Transportation", "Facilities and Services", and "Other". The County's responsibility to make this land use decision in accordance with its comprehensive plan is direct and immediate. In addition, it must look forward to how the proposed city will deal with the plan pending adoption of its own plan and implementing ordinances. ORS 215.130 (2) provides that a county's comprehensive plan and implementing ordinances shall continue to apply to land inside a newly incorporated city unless and until the city provides otherwise. However, ORS 197.175 imposes upon a newly incorporated city a separate obligation to comply with statewide goals and to make land use decisions in accordance with statewide goals, "If its [the city's] comprehensive plan and land use regulations have not been acknowledged by the commission". The same statute requires cities to adopt comprehensive plans and implementing ordinances. In addition, ORS 197.757 requires newly incorporated cities to have their comprehensive plans and land use ordinances acknowledged by the LCDC within four years. Based upon these statutes, it appears that a newly 5 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1018 incorporated city must make land use decisions from the outset in accordance with both the statewide goals and with the county's comprehensive plan and implementing ordinances. Therefore, the evidence and findings supporting an approval of an incorporation petition must support the county's determination that: (1) the proposed city can and will comply with both sets of regulations from the outset; and, (2) the proposed city can and will adopt, secure acknowledgement, and competently implement its own comprehensive land use plan and implementing ordinances within the time period allowed by the statute. The record and findings must also demonstrate that the city can and will continue to comply with the county plan and implementing regulation or that the city can and will be able to adopt and implement its own plan and implementing regulations in a manner consistent with the statewide goals that will apply directly to the city's planning and zoning process. This requirement effectively brings the statewide goals in through the plan and requires the same analysis of goal issues as described in the Wasco case, quoted above. If the proposed incorporation is found to be inconsistent with the comprehensive plan or applicable zoning ordinances, then the petition will have to be denied or an appropriate plan amendment or land use regulation amendment will have to be adopted in conjunction with any approval. FACTS Based upon filings with the County Clerk, upon the evidence presented at the public hearings and in supplemental submissions by interested parties, we make the following findings of fact: 1. Procedural Requirements. 1.1 On April 29, 1993, Chief Petitioners, Vince J. LePore, Jr. and Clifton H. Jones, registered electors within the territory of the proposed City of Sunriver, filed with the county clerk prior to its circulation a proposed petition to incorporate an unincorporated territory as a city. 1.2 As required by ORS 221.031(2) the petition: 1.2.1 Designated Richard B. Wright and Clifton H. Jones as chief petitioners, each of whom is an elector and resident within the boundaries of the proposed city. 1.2.2 named the proposed city the City of Sunriver. 6 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1019 1.2.3 Proposed a tax base of $2,000,000 as sufficient to support an adequate level of municipal services. 1.2.4 Estimated the rate of taxation necessary to raise an amount of revenue equal to the proposed tax base as $3.06 per $1,000 of assessed value. 1.2.5 Included a map indicating the exterior boundaries of the proposed City of Sunriver. The legal description of the area within the boundaries on the map being set forth as Attachment A hereto and incorporated herein by this reference. (Territory) 1.3 On April 29, 1993, the Chief Petitioners also filed the economic feasibility study (EFS) required by ORS 221.035, a copy of which is marked Attachment B hereto and incorporated herein by this reference, and the County Clerk certified the Petition for circulation and the gathering of signatures. 1.4 On June 10, 1993 the Chief Petitioners filed with the County Clerk the petition with in excess of 287 signatures (Petition). 1.5 On June 14, 1993 the County Clerk verified 287 signatures on the Petition which represents 20% of the electors within the territory of the proposed City of Sunriver. 1.6 On September 22, 1993 the Board of County Commissioners set the public hearing on the Petition for October 27, 1993 at 7:00 pm in the Great Hall at Sunriver Resort. 1.7 As required by ORS 221.040(1) on October 13 and 20, 1993, notice of the public hearing on the Petition was advertised in the Bend Bulletin, a newspaper of general circulation within the territory of the proposed City of Sunriver and posted in three places within the Territory. 1.8 As required by ORS 221.040(2) on October 27, 1993 the Board of County Commissioners conducted the public hearing as advertised and received testimony from all interested parties, including, but not limited to the proponents and opponents of the Petition and people who sought answers to questions concerning the Petition and its effect. 1.9 At the conclusion of the testimony at its hearing 7 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1020 on October 27, 1993 the Board of County Commissioners directed the record remain open until 4:30 pm on November 3, 1993 to receive additional written testimony concerning the Petition. 1.10 On November 10, 1993 the Board of County Commissioners discussed the record of these proceedings and adopted Resolution 93-106 making a preliminary tentative determination that the Petition should be approved as submitted and that the Petition should not be denied, and requesting parties submit proposed findings for consideration and potential adoption by the Board no later than November 24, 1993. 2. Present Comprehensive Plan and zoning designations for the Territory. 2.1 The property within the boundaries of the proposed city is located in Townships 19 and 20, South, Range 11, East, and includes all of the Sunriver Planned Community, the planned Sunriver expansion and Harper Subdivision. The property is further described in Attachment A hereto and is the same referred to in Finding 1.2.5 as the Territory. 2.2 The Territory is comprised of approximately 4,378 acres which are herein referred to as Area 1, Area 2 and Area 3. Each area is described as follows: 2.2.1 Area 1 is the 3,368 (77%) acres located within Sunriver zoned Planned Community, PC, with selected areas in the Landscape Management and Airport Height Combining Zones. Area 1 is designated Planned Community by the Deschutes County Comprehensive Plan. 2.2.2 Area 2 is the 606 acres (14%) designated as the Two Rivers destination resort. It is located south of Spring River Road, west of South Century Drive, and is zoned Forest, F2, Exclusive Farm Use, EFU-LA, and Flood Plain, FP. Area 2 is also within the Landscape Management, Wildlife Area and Airport Height Combining Zones. Area 2 is designated Forest and Agriculture by the Deschutes County Comprehensive Plan. 2.2.3 Area 3 comprises the remaining 404 acres (9%) within the Territory and is located 8 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1021 south of Spring River Drive and east of South Century Drive. Area 3 is zoned Forest, F-2, and is within the Landscape Management, Wildlife Area and Airport Height Combining Zones. It is designated Forest by the Deschutes County Comprehensive Plan. 2.3 The portion of the Territory situated north of Spring River Road is located within an acknowledged exception area documented in the County's Comprehensive Plan and acknowledged by the LCDC in April 1981. The surrounding area includes properties planned and zoned for forest uses (F-1) to the north, east and west. The portion of the Territory situated south of Spring River Road is bordered by properties planned and zoned for rural residential purposes (RR -10) to the west and south; properties planned and zoned for forest use (F-1) are found to the east. Additionally, there is a small Rural Service Center located to the west, along Spring River Road, which was approved by the Board of County Commissioners on February 14, 1990 (decision detailed in files #PA-89-6/ZC-89-7 and incorporated by reference herein). 2.4 Deschutes County recently approved a new destination resort to include approximately 600 acres located south of Sunriver and east of the Deschutes River and comprising most of Area 2. The property is identified on Assessor's Map #20-11 as tax lots 1200 and 1300, and is included in the Territory. The project includes and 18 -hole golf course, 94 single-family lots and 25 townhouse/condominiums. Water and sewerage service to the property is provided by Sunriver Utilities Company; fire protection is provided by Sunriver or LaPine Fire Departments. Approval of this project is documented in files #CU-90-36/CU-90-37/Master Plan 90-1/SP-92-173/TP-92-795/TP-93-817, which are incorporated by reference herein. 2.5 The Territory has a population in excess of 150. The present permanent residential population within the Territory is approximately 1,700 persons. 2.6 The proposed City of Sunriver is not part of or near an incorporated city and is in an unincorporated area of Deschutes County. 3. Content of Present Petition and supporting Economic Feasibility Study. 9 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1022 3.1 The Petition to incorporate the City of Sunriver and the EFS supporting it, as filed meets the requirements in ORS 221.031 through 221.040. They: 3.1.1 Designate the name for the proposed city as the City of Sunriver, Oregon; 3.1.2 Propose a tax base of $2,000,000 and declare that during the first year of operation, the proposed city would not need to levy a property tax but during the second and third years levy only $981,000 per year of the proposed tax base at an estimated annual rate of taxation for each year of $1.50 per $1,000 of assessed value based upon a total assessed value for the proposed city of $654,048,560; 3.1.3 Declare that if the full tax base were levied in a single year based upon the total assessed value in 3.1.2 above, the tax rate would be an estimated $3.06 per $1,000 of assessed value; and 3.1.4 Include a map and legal description indicating the exterior boundaries of the proposed city. 3.2 The EFS forms the basis for the proposed $2,000,000 tax base and contains: 3.2.1 A description of services and functions to be performed or provided by, and information regarding, the proposed city, including: 3.2.1.1 Financial: $2,000,000 tax base; all revenues during the first year to be raised from a transient room tax, utility taxes, state revenue-sharing and a portion of the tax base to be levied in succeeding years; municipal borrowing rates. 3.2.1.2 Political: election of five -member city council with full municipal powers including the power of eminent domain. 3.2.1.3 General: administrative public offices located in the Territory. 10 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1023 3.2.1.4 Services to be phased in as follows: Planning and Administrative, June 1, 1994; Fire/Emergency Medical Service, January 1, 1995; Police, July 1, 1995; Public Works, July 1, 1995. 3.2.2 A description of the services now provided to the Territory by the Sunriver Owners Association("SROA"), Sunriver Utilities Company, Deschutes County, LaPine Rural Fire Protection District, and Bend-LaPine School District and an analysis of the relationship between those services and the services proposed for the new city. 3.2.3 A proposed first and a third year budget for the new city demonstrating its economic feasibility. 4. Prior petition concerning Sunriver. A previous petition for incorporation of a new City of Sunriver was made on May 16, 1991. After reviewing the petition and holding hearings on the matter, the Board of County Commissioners denied the petition through adoption of Order No. 92-014. The current Petition differs from the previous one primarily by the increased area to be included within the proposed city, the timing and scope of municipal services contemplated and the method of financing including a tax base. 5. Land that may be benefited. 5.1 Based upon the record, the Board finds that those lands, and only those lands, which are included within the boundaries of the city as proposed in the petition are likely to be benefited by inclusion within the boundaries of the proposed city. 5.1.1 All foreseeable needs for urban and urbanizable land can be met within the boundaries as proposed, which include substantial areas of buildable land adjacent to existing development and in the logical location for future growth of the community. 5.1.2 The entire area proposed for incorporation is located east of the 11 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1024 Deschutes River. Urban services and facilities could only be extended at high cost to property located on the other (west) side of the Deschutes River along Spring River Road. 5.2 Area 1 of the Territory is substantially developed as an urban community, with future development consisting primarily of infill. As such, it will benefit from the full range of services and privileges available to an incorporated city. 5.3 Area 2 of the Territory is committed to development by prior final land use decisions of the Board of Commissioners addressing all applicable land use standards and approving the use of the area as a destination resort constituting an extension of the existing community. As such, it will also benefit from the full range of services and privileges available to an incorporated city. 5.4 Area 3 of the Territory, although currently designated for forest use, is benefited by the proposal because it is, by location, topography, and relative resource value, the logical area for other planned growth of the community, and therefore the most likely to be included in the proposed city's urban growth boundary. 5.4.1 There are no physical or topographical impediments to the extension of facilities to Area 3. 5.4.2 Other lands contiguous to Areas 1 and 2 are either in federal ownership or have physical limitations which make urban development impracticable in comparison with Area 3. 5.4.3 Inclusion of Area 3 within the proposed city boundaries enhances its economic value while dampening speculative pressures on resource lands excluded from the territory. 5.4.4 The new city will have both the authority and the duty to assure the provision of the full range of urban services and facilities to Area 3 in a timely and orderly manner as required to meet its obligations under its comprehensive plan, statewide goals, and other applicable 12 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1025 local, state, and federal laws and regulations. 5.4.5 The city's obligations may be met in a variety of ways, ranging from direct provision to contracting with existing service districts and private utilities. 5.4.6 Inclusion within the incorporated city renders it more likely that the provision of services and facilities will be well coordinated. 5.4.7 The proposed city's land use obligations with respect to the lands to be included within its boundaries may be enforced by interested persons and state, federal, and local agencies, through a variety of mechanisms including the plan adoption and acknowledgment process, appeals of individual ordinances and permits, and, if necessary, the issuance of formal enforcement orders by the Land Conservation and Development Commission under ORS 197.319 to ORS 197.350. 6. Proposed tax base and economic feasibility statement. 6.1 The EFS was prepared by or on behalf of the chief petitioners for incorporation as required by ORS 221.031(2). 6.2 The EFS was filed concurrently with the petition for incorporation as required by ORS 221.031(2). 6.3 The Petition contains a declaration of the rate of taxation necessary to raise an amount of revenue equal to the proposed tax base. 6.4 The EFS forms the basis for the proposed tax base included in the petition. 6.5 The EFS contains the elements required by ORS 215.035: "(1) A description of the services and functions to be performed or provided by the proposed city; "(2) An analysis of the relationship between those services and functions and other existing or needed government services; and 13 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1026 "(3) Proposed first and third year budgets for the new city demonstrating its economic feasibility." 6.6 The EFS proposes a $2 million tax base of which only $981,000 would be levied in the second and third year of the proposed City of Sunriver's operations. The estimated tax rate for the second and third years, using the current assessed value of property within the Territory as set forth in the EFS (approximately $650 million), is $1.50 per $1,000 of assessed value. Therefore, the EFS determines that, if the full tax base were levied, the estimated tax rate would be $3.06 per $1,000 of assessed value. 6.7 The phasing in of municipal services as proposed in the EFS, coupled with the general revenue powers of the proposed city and the proposed $2 million tax base, provide a reasonable basis for the new city to operate within the new tax base. The Board makes this finding with the caveat that the proposed tax base does not appear to be unduly generous. The detailed critiques and alternative projections of the opponents persuade the Board that the Petitioners' projected costs, particularly costs of cost of personnel and of maintaining, providing, and extending municipal services throughout the incorporated area are highly optimistic. The new city may well result in the need to levy the full amount of the tax base authorization shortly after incorporation. 6.8 The EFS contains sufficient data and analysis to support a determination that the tax base proposed by the petition is sufficient to support an adequate level of municipal services. A number of significant issues have been raised concerning various elements of the proposed budget. However, those issues concern differences of opinion and judgment about the future, principally projected costs and expenses. The proposed tax base provides for a sufficient margin of error to adjust revenues upward to cover the identified contingencies. 6.9 In sum, the petition and economic feasibility statement (EFS) meet the requirements of ORS 221.031(2) and ORS 221.035 concerning an economic feasibility statement and proposed tax base. The Board's review ends here. The final judgment on the soundness of the petitioners' analysis and projections lies with the voters of the area 14 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-102'7 proposed for incorporation and will no doubt be the subject of debate prior to the election. 7. Compliance with county plan and implementing regulations. 7.1 The Board finds that incorporation of the proposed city will not, by itself, alter the current land use status of the subject lands and will not, therefore, violate any binding policy or standard of the Deschutes County Comprehensive Plan or the Deschutes County Land Development Code. Under ORS 215.130, the county's plan and land use regulations shall continue to apply to land within a new city until such time as the new city "has by ordinance or other provision provided otherwise." As a land use decision, that initial action by the city will itself be subject to review for compliance with applicable state and local land use statutes, goals, administrative rules, plan policies, and implementing regulations. 7.2 Neither the Deschutes County Comprehensive Plan nor the Deschutes County Land Development Code contains specific policies or provisions encouraging, restricting, or prohibiting the bare incorporation of a new city unaccompanied by concurrent land use changes. They do, however, prohibit the conversion of rural land to urbanizable or urban land except through the adoption of a formal exception or the establishment of an urban growth boundary. 7.3 The incorporation of the City of Sunriver, standing alone, will not, of itself, alter the existing land use designations applicable to lands within the area to be incorporated. 7.4 Because the proposed city includes all land currently expected to be included or proposed for inclusion within the City's urban growth boundary and subjected to the city's comprehensive plan and land use regulations, the proposed incorporation does not commit or tend to commit excluded resource land to nonresource use. 7.5 No land within the proposed city may be redesignated from rural to urbanizable or urban uses unless and until exceptions are taken or a growth boundary is established upon the completion of future public hearings involving full public notice and participation and upon a future determination that such changes comply fully with 15 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1028 all applicable state and local land use regulations. 8. Compliance with state land use goals generally. 8.1 The principal land use question for the Board in these proceedings is whether it is reasonably likely that the newly incorporated city can and will comply with statewide land use goals when the city assumes its planning responsibilities. "To the extent that a county can conduct a meaningful inquiry as to all [potentially applicable] goals, it must do so." 1000 Friends of Oregon v. Wasco County Court, 299 Or 344, 367 (1985). 8.2 The record shows that the proposed city will have the financial resources to fully comply with all foreseeable land use obligations, including but not limited to the development, adoption, and implementation of an urban growth boundary, comprehensive plan, and implementing regulations. 8.3 The record shows that the area proposed to be incorporated possesses, within its boundaries, substantially all of the infrastructure of a fully - incorporated city, and that no obvious reason exists why that infrastructure cannot be extended to serve the entire area if and when it is necessary to do so. 8.4 The coastal goals (16-19) and the Willamette River Greenway goal (15) have no current or future application to the Sunriver area. 9. Goal 1: Citizen Involvement. This goal requires the new city to develop a means of assuring citizen involvement in all phases of the planning process through a citizen involvement committee and other methods specified in the goal. 9.1 The breadth and depth of citizen participation on both sides of the incorporation issue in these proceedings to date have demonstrated to the Board that it is likely that the city will be able to comply with this goal. 10. Goal 2: Land Use Planning. This goal requires the establishment of a land use planning process and policy framework as a basis for land use decisions. It requires local governments to make ultimate policy choices on land use matters, to support those choices with relevant data and analysis, and to adopt comprehensive plans that 16 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1029 coordinate and relate natural and municipal systems and functions. It also provides standards for exceptions to be adopted as part of a comprehensive plan in those strictly limited situations where a departure from specific goal requirements is warranted. Satisfaction of this goal requires adoption of a comprehensive plan and its acknowledgment by the Oregon Land Conservation and Development Commission within four years. 10.1 The area proposed for incorporation has already been extensively inventoried and studied for purposes of compliance with the statewide goals under the Deschutes County plan. In addition, Area 1 is already the subject of exceptions and of an acknowledged subarea master plan recognizing its de facto urban status. 10.2 The new city will have the resources to develop a comprehensive plan and related inventories, studies, and implementing regulations within the four-year deadline established by ORS 197.757. 10.3 With the addition of Areas 2 and 3, the new city will probably have all the land needed within its boundaries to accommodate the full range of uses and public facilities required by a comprehensive plan for the new city that complies fully with all applicable statewide goals. 11. Goal Three -Agricultural Lands. This goal requires the preservation of agricultural lands located outside urban growth boundaries. 11.1 Some land within Area 2 is currently zoned for agricultural use. However, all of this land has also been approved for development as a destination resort in accordance with Oregon's destination resort siting statute. Incorporation will not alter either the underlying zoning or the resort siting approval. There is no other agricultural land within the proposed city, so no land will be converted to nonagricultural use by incorporation or by future planning decisions. Accordingly, the new city will have no trouble complying with this goal. 12. Goal Four -Forest Lands. This goal requires the preservation of forest lands for forest uses unless their conversion to other uses is authorized by a lawful exception or by the establishment of an acknowledged urban growth boundary. 17 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1030 12.1 Area 1 is substantially developed and is already the subject of a built -and -committed lands exception to this goal. 12.2 Some land within Area 2 is forest land and is currently so zoned. Like the farmland in Area 2, however, this land has also been redesignated for destination resort use through an acknowledged final land use decision that is not likely to be altered by incorporation or subsequent planning decisions. 12.3 Area 3 is currently planned and zoned for forest use. It is not currently undergoing urban development. Although future conversion to urban and urbanizable uses is likely, it also is likely that the city will only convert the subject land to nonforest uses through the establishment of an urban growth boundary and the adoption and implementation of a comprehensive plan in accordance with all applicable goals. 13. Goal 5: Open Spaces, Scenic and Historic Areas, and Natural Resources. This goal requires the conservation and protection of inventoried and significant open space, scenic and historic areas, and natural resources unless conflicting uses have been identified and justified through an analysis of the economic, social, environmental and energy consequences (ESEE analysis). 13.1 These resources have been inventoried and are protected under the existing Deschutes County Comprehensive Plan. Private protection of several Goal 5 assets would continue through enforcement of the Consolidated Plan of Sunriver, which will continue to be applicable to a substantial portion of the territory after incorporation. Further consideration and categorization of Goal 5 resources would occur through the new city's development and acknowledgement of a comprehensive plan. It is reasonably likely that the new city can and will comply with Goal 5. 14. Goal 6: Air, Water and Land Resources Quality. This goal requires local governments to maintain and improve the quality of air, water and land resources by adhering to state and federal standards and by protecting those resources from adverse increases in waste and process discharges. 14.1 The proposed developed area of Sunriver is already working to preserve air and water quality and the 18 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1031 new city will provide added authority and resources for that purpose. It is reasonably likely that the new city can and will comply with Goal 6. 15. Goal 7: Natural Hazards and Disasters. This goal requires that in areas of natural hazards, such as landslides and floods, developments must incorporate appropriate safeguards. 15.1 The areas within the territory of the proposed city that are subject to natural hazards and disasters have been identified, evaluated, and addressed in the existing acknowledged Deschutes County Comprehensive Plan and implementing ordinances. Incorporation will not significantly alter the elements of compliance under this goal, and it is likely that the new city can and will comply with Goal 7. 16. Goal 8: Recreational Needs. This goal requires planning for recreation areas, facilities and opportunities in appropriate proportions and in such quantity and locations as is consistent with the availability of resources. 16.1 As a successful and well-equipped destination resort in the heart of a premier recreational area, the proposed city is well-equipped by facilities, setting, and resources to meet the recreational needs of its citizens and visitors. 16.2 In its previous order denying a petition for incorporation, the Board expressed its concern that the area proposed to be incorporated included no publicly -owned parkland and that no space had been identified within the boundaries of the proposed city as being potentially available for such uses. The record in that proceeding showed that all space within the proposed city boundaries had been allocated and substantially dedicated to other uses in such a manner that it would be difficult to convert to parkland without incurring substantial acquisition costs not reflected in the proposed budget. 16.3 The record in this proceeding shows the same current deficiencies. However, it also shows that the proposed city limits have been altered to include over 400 acres of vacant land adjacent to existing development. This land is available to meet a range of needs, including parkland needs, that may be identified in the city's plan. 19 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1032 Accordingly, the Board finds that it is reasonably likely that the new city can and will comply with Goal 8. 17. Goal 9 - Economic Development. This goal requires that urban areas adopt and implement policies that "diversify and improve the economy of the state." The Economic Development Goal also requires city plans and policies to "contribute to a stable and healthy economy in all regions of the state." By "diversify," the goal means to increase the "variety, type, scale and location of business, industrial and commercial activities." Under this goal and the Goal 9 interpretive rule, the new city will have to inventory its stock of buildable commercial and industrial lands, project future need for such lands, and plan and zone adequate acreage to meet the projected needs. Under the rule, the city must designate a sufficient number of sites of suitable sizes, types, and locations to meet the identified needs, and the total acreage designated must "at least equal the projected land needs for each category during the 20 -year planning period." OAR 660-09-025(2). The designations may not be on unbuildable land or subject to vague or subjective policies or standards or to cumbersome procedures which significantly impair their availability. 17.1 There is a limited amount of undeveloped land available for development in existing commercial areas within the commercial area in Sunriver Village. 17.2 About 40 acres zoned for light industry are available in the Sunriver Business Park. 17.3 Area 3, comprising just over 400 acres, is located in close proximity to existing industrial and commercial areas, as well as residential areas, and could be used in part for commercial and industrial use if determined to be necessary through the city's application of the Economy goal in the development of its comprehensive plan. 17.4 Necessary public facilities and services are currently available to the business park and Sunriver Village, and the new city will have the financial capacity to provide any necessary services and facilities to Area 3 as necessary. 17.5 The proposed extensions are not likely to be required within the three-year budget period covered by the EFS. 20 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128=1033 17.6 The proposed city will have sufficient taxable property value and vacant, serviceable, buildable land to meet its foreseeable obligations under this goal. 17.7 For the above reasons, the Board finds that it is reasonably likely that the proposed city can and will meet its obligations under the Economy Goal. 18. Goal 10 - Housing. The State Housing Goal requires local jurisdictions, through their comprehensive plans and land use regulations, to "provide for the housing needs of the people of the state." The Housing Goal requires that "Buildable lands for residential use shall be inventoried," and that the city's plan "shall encourage the availability of adequate numbers of housing units at price ranges and rent levels which are commensurate with the financial capabilities of Oregon households and allow for flexibility of housing location, type and density." In connection with the acknowledgement of city comprehensive plans under this goal, the Oregon Land Conservation and Development Commission has ruled that "The Housing Goal requires a demonstration in the plan that sufficient suitable and available residential land is designated under clear and objective standards to meet estimated housing needs. Required information includes: (1) a reasoned determination of housing needs to [the 20th year from acknowledgement], including data and facts supporting that determination; (2) an inventory of the buildable residential land available and designated to meet housing needs, adopted as policy with clear and objective implementing measures." LCDC Continuance Order 83 -CONT -111, June 14, 1983, Findings p. 24. The LCDC determined in the above continuance order, for example, that a newly incorporated city had not yet complied fully with the goal because its implementing ordinance allowed the imposition of conditions on land divisions and development approvals that could reduce planned densities, increase housing costs, and effectively exclude needed housing types. A key element of the Goal is availability. Land must be actually and realistically available to meet both short- term and long-term needs. To be available, the land must be buildable, meaning that it must not be subject to such constraints as vague standards, cumbersome approval 21 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1034 procedures, difficult slope and soil conditions, conflicting and overlapping use designations, uncertain wetland status, or lack of services. 18.1 As in the previous proceeding, the Board finds here that the existing housing stock within the proposed city limits would not provide for the full range of income levels in Deschutes County. 18.2 There is a need for additional low-cost housing, both public and private, in the county and in the area of the proposed city, within which substantial numbers of people are employed in lower -paying tourist and service positions. 18.3 Existing development and private covenants and restrictions applicable to remaining undeveloped lands within Area 1 will impede or prevent the construction of housing within that area in the range of prices, rents, and types that may be necessary to allow the proposed city to meet its obligations under Goal 10. 18.4 The addition of Area 3, consisting of 404 acres of undeveloped, serviceable, vacant land, represented by the petitioners to be available for purposes of satisfying the housing goal, and therefore presumably free of restrictive covenants and other such impediments, renders it reasonably likely that the new city can and will be able to meet its obligations under this goal. Because there is no direct evidence on this point, the Board expressly relies upon the representations of Petitioners concerning the long-term availability of the subject land in making this finding. 18.5 In reliance upon the representations and evidence in the record, the Board finds that it is reasonably likely that the proposed city as reconfigured will be able to fully meet its obligations under Goal 10. 19. Goal 11 - Public Facilities and Services. This goal requires the provision of a "timely, orderly and efficient arrangement of public facilities and services to serve as a framework for urban and rural development." The Goal defines a "timely, orderly and efficient arrangement" as "a system or plan that coordinates the type, location, and delivery of public facilities and services in a manner that best supports the existing and proposed land uses." This requirement is the real heart of the land use planning process, and will require the 22 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1035 proposed city to determine its needs for facilities and services based on development plans and population projections and to assure that needed facilities and services are available in advance of, or concurrent with, new development. Goal 11 specifically lists police protection, fire protection, sewer services, storm drainage facilities, planning and zoning, health services, recreation facilities and services, energy and communication services, and community governmental services. 19.1 The Deschutes County Comprehensive Plan recognizes that Areas 1 and 2 of the proposed city are currently served by urban levels of public utilities and services. 19.2 In Area 1, as of November, 1992, about 23% of the residential property, 35% of the commercial property, and 43% of the light industrial property was still vacant, yet was served by utilities and infrastructure. 19.3 Currently, many of the basic public services and facilities are provided by the Sunriver Utility Company, the Sunriver Owners' Association, and other entities associated with Sunriver Development. These entities have economic and contractual incentives to continue to provide these services. 19.4 Given existing constraints on lands within Areas 1 and 2, it is likely that compliance with the recreation, economy, housing, and other goals will require extension of urban facilities and services into Area 3 upon or soon after completion and acknowledgement of the city's comprehensive plan, if not sooner. If the extensions of sewer, water, roads, and the like are not provided by the private utility, they will have to be provided by the city. 19.5 If any of these entities chooses to curtail services or refuses to extend them in an orderly manner as required by the goal, the new city will have the powers of regulation and condemnation, as well as the asset base, with which to assure that the necessary extensions are made in a timely and orderly manner. Interested persons and agencies in turn will have the range of enforcement tools described above to ensure compliance. Accordingly, the Board finds that it is reasonably likely that the new city can and will comply with all applicable requirements of the housing goal from 23 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1036 its inception and continuing through and beyond adoption and acknowledgement of its comprehensive plan. 20. Goal 12 - Transportation. This goal requires the provision of a safe, convenient, and economic transportation system to move people and goods between geographic and jurisdictional areas. The Transportation Goal is interpreted and implemented by the Transportation Rule, OAR Ch. 660, Div. 12, "Transportation Planning." The goal requires local government transportation plans to be based upon state, regional and local transportation needs. The rule sets requirements for coordination among affected units of local government for preparation, adoption, refinement, implementation and amendment of transportation system plans. Through measures designed to reduce reliance on the automobile, the rule is also intended to support travel and land use patterns in urban areas that reduce air pollution, traffic and livability problems associated with much of urban development. Cities must adopt Transportation System Plans that vary in complexity and elements with the size of the city. Cities "containing a population greater than 2500 persons must adopt a transportation financing program." OAR 660- 12-000 ff. 20.1 The Board interprets "population" as used in the rule consistently with the purpose of the goal and rule. That purpose is to assure that the transportation systems of a community are adequate for its actual population rather than for a minority of permanent residents. Accordingly, a city's "population" for purposes of the rule consists of the city's actual typical permanent and resident population. 20.2 The proposed City of Sunriver currently has fewer than 2,500 permanent residents, but it has several times as many second homes as permanent homes, and many, if not most, of the second homes are rented out on a regular basis. The proposed city will undoubtedly contain a normal 24-hour population of substantially more than 2,500 permanent and temporary residents. 20.3 A well-established privately -owned and operated network of roads and bicycle trails is already in place, principally in Area 1. Thus the basic needs of the community are currently being met. The new City will have the authority, obligation, and resources to assure that such additional transportation facilities and services as are 24 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-103'7 necessary are provided in a timely, orderly, and adequate way. 20.4 The goal and rule do not require public ownership of any particular element of a city's transportation system. The power of eminent domain is available if needed. 20.5 The Board finds, based upon the record and these findings, that the proposed city will probably meet its obligations under the Transportation Goal and Rule. 21. Goal 13 - Energy Conservation. This goal requires that land uses maximize conservation of all forms of energy based on sound economic principles. It is implemented by local plans and regulations that control location, orientation, and density of development to minimize net energy consumption. 21.1 The territory is currently subject to the Energy chapter of Deschutes County's acknowledged plan and will remain so pending adoption of the city plan. 21.2 The existing community already emphasizes nonmotorized traffic within its confines and has the capacity to achieve additional savings in inter -city travel through the more comprehensive range of residential, commercial, and industrial facilities that incorporation would allow. 22. Goal 14 - Urbanization. This goal requires that comprehensive plans of the county and the proposed city provide for an orderly and efficient transition from rural to urban use. It requires that the proposed city's urban growth boundaries (UGB) be established through a cooperative process with the county to assure compact and efficient urban growth within the boundary while protecting and facilitating rural resource uses outside the boundary. 22.1 Urban types and levels of development exist within Area 1 and part of Area 2. It is unlikely that additional urbanization will occur without prior application of this goal or the taking of a pre - acknowledgement exception, with the accompanying intergovernmental coordination, public participation, and review procedures. 22.2 For the reasons set forth above in the Board's findings under Chapter 221 and the other goals, 25 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1038 Areas 2 and 3 appear to be the most logical areas for future expansion of urban development. 22.3 The exact contours and dimensions of the city's urban growth boundary cannot be known at this time, but it appears unlikely that they will extend outside the boundaries of the territory proposed to be enclosed. Those boundaries appear to be a good approximation for planning purposes and are sufficiently generous to make it unlikely that needed expansion could be frustrated through inability to annex additional incorporated land. 22.4 For the above reasons, the Board finds that the proposed city, will, if incorporated, probably comply with the Urbanization Goal. 26 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) 0128-1039 LIST OF ATTACHMENTS FINDINGS IN SUPPORT OF ORDER GRANTING PETITION ATTACHMENT A. Map and Legal description of area within the boundaries of the proposed City of Sunriver B. Proposed City of Sunriver: Economic Feasibility Study: April 24, 1993 27 - FINDINGS IN SUPPORT OF ORDER 93-225 (12/15/93) MAP OF j scale 1' = 3000' design RASH SUNRIVER INCORPORATION Gate 4/2/93 drown JHS DAVID EVAIS AND ASSOCIATEL, INC BOUNDARY file SRIC0001 — SRIC001C.CWG (716) 709 NW WALL STREET, SL=102 1 iBEND, OREGON 97701 (503)389-7814 P 1 • L+ 0.128~1441 EXIIIIIIT "A" PROPERTY DESCRIPTION SUNRIVER INCORPORATION BOUNllARY Beginning at the southeast corner of Section 20 in Township 19 South and Range I I Cast of the Willamette Meridian in Deschutes County, Oregon; and running thence North 00°31'51" West a distance of 2648.54 feet to the northeast corner of the southeast quarter of said Section 20; thence South 89°46'03" West 4268.88 feet along the centerline of said Section 20 to a Witness Point on the right bank of the Deschutes River; thence South 89°46'03" West along said centerline 135.77 feet to the centerline of the Deschutes River; thence South 13°30'00" East along said river centerline 135.73 feet; thence South 23°48'21" West 185.81 feet; thence South 36°33'59" West 226.60 feet; thence South 08°59'25" East 159.97 feet; thence South 50°06'59" East 467.85 feet; thence South 04"50'12" East 130.47 feet; thence South 25°11'20" West 1005.63 feet; thence South 196.00 feet; thence South 24°31'04" East 513.28 feet; thence South 31°08'40" West 380.90 feet; thence South 37°21'57" West 620.49 feet; thence South 59°03'02" West 326.88 feet to the East line of the northeast quarter of Section 30 in said Township and Range; thence leaving said river centerline South 00°01'28" West along said East line 390.00 feet to the centerline of the Deschutes River; thence North 69°43'31" East along said river centerline 361.48 feet; thence East 370.00 feet; thence South 20°50'30" East 399.12 feet; thence South 21 °52'07" West 158.40 feet; thence South 56'49'17" West 946.84 feet to the East line of the northeast quarter of said Section 30; thence leaving said river centerline, South 00°01'28" West along said East line 374.64 feet to the southeast corner of said northeast quarter of said Section 30; thence South 89°46'01" West 323.71 feet along the centerline of said Section 30 to the centerline of the Deschutes River; thence South 41 °57'01" West along said river centerline 508.10 feet; thence South 29°03'17" West 267.69 feet; thence South 43°04'49" West 253.29 feet; thence North 72°00'25" West 246.03 feet; thence North 49°53'57" West 248.40 feet; thence West 150.00 feet; thence South 54'17'36" West 197.04 feet; thence South 23'11'55" West 114.24 feet; thence South 09°07'18" West 359.55 feet; thence South 39°05'02" East 843.83 feet; thence South 01 °44'09" East 330.15 feet; thence South 16°41'57" West 313.21 feet; thence South 28'53'12" West 331.21 feet; thence South 01 °57'09" West 440.26 feet; thence South 21 °52'45" Fast 684.29 feet; thence South 02°51'45" West 600.75 feel; thence South 40"25'34" West 354.68 feet; thence South 83°50'09'West 251.45 feet; thence North 41 '12'17" West 288.43 feet; thence North 12°56'23" West 468.91 feet; thence North 57°09'18" West 282.10 feet; thence North 82°20'00" West 262.35 feet; thence South 86°38'45" West 254.83 feet; thence South 50°22'28" West 1569.18 feet; thence South 37°31'09" West 353.02 feet; thence South 32°39'39" West 463.25 feet; thence South 22°53'26" West 488.47 feet; thence South 420.00 feet; thence South 35°20'24" East 240.00 feet; thence South 73°42'55" East 188.30 feet; thence North 78°01'26" East 210.00 feet; thence North 66°41'42" East 707.74 sd6stbdry.6b Fcbrvnry 25.1993 11�c;1'�'l i I?C. CI'R\ Il(11ti. 1'I IN;�'I I?4 1 1':I+�! 11'I \P� III 11+ I'. ' + II ': I I'• 1 •. 0!1If I 1! )VI ;1`III!:CIt+'d 1':I++ 1.111 :1 -n•+W\\.1`:111 �II?II I.�I'lll Itl� ,,t,;11+,.1 61I 0128-1042 feet; thence South 76° 13'06" East 272.86 feet; thence South 51 °57'23" East 704.76 feet; thence South 19044'49" East 207.18 feet; thence South 40°14'11" West 340.59 feet; thence South 66°54'54" West 331.55 feet; thence West 500.00 feet; thence North 64°17'24" West 300.00 feet; thence North 43°00'00" West 91.67 feet to the East line of Government Lot 4 in Section 31 in said Township and Range; thence leaving said river centerline South 00°06'05" West along said East line 633.92 feet to the centerline of the Deschutes River; thence South 77°43'00" East along said river centerline 85.91 feet; thence South 36'19'37" East 211.00 feet; thence South 150.00 feet; thence South 40°22'29" West 310.64 feet to the Fast line of Government Lot 4 in Section 6 in Township 20 South and Range 11 East; thence leaving said river centerline, South 01'03'42" East 874.86 feet to the southeast corner of said Government Lot 4; thence South 88°07'39" West 625.32 feet along the South line of said Government Lot 4 to the centerline of the Deschutes River; thence along said �� )�� + ►� river centerline, South 220.21 feet; thence South 36°38'03" East 729.01 feet; thence South 34 °24'46" East 615.77 feet; thence South 15'12'29" East 320.21 feet; thence South 06°07'50" West 271.55 feet; thence South 33°33'14" West 466.78 feet; thence South 22°09'35" West 296.93 feet; thence South 04°37'27" West 272.89 feet; thence South 06° 12'03" East 453.65 feet; thence South 25'10'40" East 258.57 feet; thence South 56'06'15" East 231.31 feet; thence South 82'49'15" East 264.07 feet; thence North 74°19'27" East 262.77 feet; thence North 70°26'39" East 567.71 feet; thence North 80'37'52" East 220.99 feet; thence South 82'57'15" East 896.77 feet; thence South 45°32'01" East 243.85 feet; thence South 200.00 feet to the South line of the southeast quarter of said Section 6; thence leaving said centerline South 87"59'18" West 1051.23 feet to the southwest corner of the southeast quarter of said Section 6; thence South 00'13'46" West 2659.60 feet to the southwest corner of the northeast quarter of Section 7; thence South 00'13'46" West 1329.80 feet to the southwest corner of the northwest quarter of the southeast quarter of Section 7; thence North 88°08'21" East 1321.10 feet to the southeast corner of the northwest quarter of the southeast quarter of Section 7; thence South 00°16'25" West 1331.00 feet to the northwest corner of the northeast quarter of the northeast quarter of Section 18; thence South 00'06'18" West 2714.00 feet to the southwest corner of the southeast quarter of the northeast quarter of Section 18; thence North 89°23'50" East 1322.70 feet to the southeast corner of the northeast quarter of Section 18; thence North 89°04'31" East 1325.40 feet to the southeast corner of the West half of the northwest quarter of Section 17; thence North 89°04'31" East 1325.36 feet to the southwest corner of the southwest quarter of the northeast quarter of Section 17; thence North 00°00'35" West 1350.87 feet to the northwest corner of the southwest quarter of the northeast quarter of Section 17; thence North 89°30'30" East 1324.68 feet to the northeast corner of the southwest quarter of the northeast quarter of Section 17; thence North 00°02'00" West 1340.86 feet to the southeast corner of the West half of the southeast quarter of Section 8; thence North 00°31'30" West 2670.48 feet to the northeast corner of the West half of the southeast quarter of Section 8; thence South 89'51'10" West 663.44 feet to the center -west -east 1/64 corner of Section 8; thence North 00°37'35" West 2665.47 feet to the west -east 1/64 corner between Sections 5 sric\sihary.akb Pchniary 25. 1993 P 1.2 0128`1043 and 8; thence North 89035'40" East 1087.63 feet along the south line of Section 5 and to westerly right-of-way of the Burlington Northern Railroad; thence along said westerly right-of-way as follows; thence North 04°55'15" West 1321.10 feet to the North line of the southeast quarter of southeast quarter of Section 5; thence South 89°42'01" West along said North line 25.08 feet; thence North 04°55'15" West 413.27 feet; thence North 85°04'45" East 25.00 feet; thence North 04"55'15" West 1693.70 feet; thence along a spiral curve to the right, the chord of which bears North 04°00'52" West 182.34 feet; thence 905.39 feet along the are of a 1960.00 foot radius curve right (the long chord of which bears North 11 °00'45" East 897.36 feet); thence along a spiral curve to the right, the chord of which bears North 26°02'21" East 182.34 feet; thence North 26°56'45" East 665.22 feet to the South line of the southeast quarter of Section 32 in Township 19 South and Range 11 East; thence South 89'10'08" West 28.26 feet along said South line; thence North 26°56'45" East ((F n� 1375.53 feet to the East line of said southeast quarter; thence South 00° 14'53" East 54.70 feet along said East line; thence North 26°56'45" East 401.07 feet; thence along a spiral curve to the right, the chord of which bears North 27°20'54" East 121.05 feet; thence 654.54 feet along the arc of a 2914.67 foot radius curve right (the long chord of which bears North 34°34'45" East 653.16 feet); thence along a spiral curve right, the chord of which bears North 41 °48'36" East 121.05 feet; thence North 42°12'45" East 1401.80 feet; thence along a spiral curve to the left, the chord of which bears North 41"48'48" East 118.95 feet; thence 1137.30 feet along the arc of a 2814.79 foot radius curve left (the long chord of which bears North 29°26'15" East 1129.58 feet); thence along a spiral curve to the left, the chord of which bears North 17°03'44" East 118.95 feet; thence North 16°39'45" East 4037.50 feet; thence leaving said westerly right-of-way North 06°58'29" East 116.67 feet; thence 531.86 feet along the arc of a 650.00 foot radius curve left (the long chord of which bears North 16°33'44" West 517.14 feet); thence North 40°00'11" West 216.57 feet; thence North 46°46'00" West 132.60 feet to the South line of the northwest quarter of the northeast quarter of Section 28 in Township 19 South and Range 11 East; thence South 89°30'48" West 450.68 feet to the southwest corner of said northwest quarter of said northeast quarter; thence South 89°30'48" West 2670.44 feet to the southwest corner of the northwest quarter of the northwest quarter of said Section 28; thence North 00°5226" East 1324.16 feet to the point of beginning. REGISTEnED PP(UFESSIONAL !_r.r.;D SURVEYCM PDANID REGON K. BARE EM�IN i (A t nriclerhdry.dkh rchrunry 25. 1993 P 1.3 0128-1044 L=> R O P O S E D C I T Y OF, S U N R I V E R E C O N O M I C F E A S I B I L I T Y S T U D Y April 24, 1993 e Prepared by the Sunriver Incorporation Committee Clifton H. Jones and Vincent J. LePore Jr., Chief Petitioners 0128=1045 TABLE OF' CONTENTS A. DESCRIPTION OF PROPOSAL AND FEASIBILITY STUDY Map and Legal Descriptions 1 Proposal 2 Introduction 4 Statement of Reasons to Incorporate 6 Analysis of Benefited Land; Rational for Corporate Boundaries 9 Budget - General Commentary 11 Budget - City of Sunriver 14 Resources 14 Expenses 15 Footnotes - Resources/Expenses 16 Analysis of Proposed Services and Service Areas 19 The Effect on Existing Service Providers 21 B. BACKGROUND DATA History of Sunriver 23 Description of existing governance 26 Setting and Natural Environment 28 Land Use 29 Socio -Economic Factors 30 Description of Existing Services and Facilities 31 C. LAND USE LEGAL JUSTIFICATIONS Land Conservation and Development Commission Goal Analysis 39 Relationship to Existing Plans 41 Built/Omitted/Needs Exceptions 41 Impact on Financial Integrity of Other Jurisdictions 41 Sunriver EFS April 17, 1993 0128=1046 A. DESCRIPTION OF PROPOSAL AND FEASIBILITY STUDY A map and legal descriptions defining the proposed boundaries of the City ,f Sunriver are attached hereto. (Pages 1.1 to 1.4) EXHIBIT "A" - Legal descriptions of boundaries of the proposed to City of Sunriver. Areas included are: 1. The area known as Sunriver, described in the Consolidated Plan of Sunriver. 2. The area known as the Sunriver Business Park. 3. Two Rivers, a 606 acre tract, South of Sunriver, which is to be developed by Lowe Enterprises. 4. An undeveloped 404 acre tract, South of Sunriver. EXHIBIT "B" - Map Sunriver EFS April 17, 1993 Page 1 EXIIJBIT ,IA„ 0128-1047 PROPERTY DESCRIPTION SUNRIVER INCORPORATION BOUNDARY Beginning at the southeast corner of Section 20 in Townshil) 19 Soulh and Ranke 1 1 East of the Willamette Meridian in Deschutes County, Oregon; and running thence North 00°31'51" West a distance of 2648.54 feet to the northeast corner of the southeast quarter of said Section 20; thence South 89°46'03" West 4268.88 feet along the centerline of said Section 20 to a Witness Point on the right bank of the Deschutes River; thence South 89°46'03" West along said centerline 135.77 feet to the centerline of the Deschutes River; thence South 13°30'00" East along said river centerline 135.73 feet; thence South 23°48'21" West 185.81 feet; thence South �- D 36°33'59" West 226.60 feet; thence South 08°59'25" East 159.97 feet; thence South 50°06'59" East 467.85 feet; thence South 04°50'12" East 130.47 feet; thence South 25°11'20" West 1005.63 feet; thence South 196.00 feet; thence South 24°31'04" East 513.28 feet; thence South 31°08'40" West 380.90 feet; thence South 37°21'57" West 620.49 feet; thence South 59°03'02" West 326.88 feet to the East line of the northeast quarter of Section 30 in said Township and Range; thence leaving said river centerline South 00°01'28" West along said East line 390.00 feet to the centerline of the Deschutes River; thence North 69°43'31" East along said river centerline 361.48 feet; thence East 370.00 feet; thence South 20°50'30" East 399.12 feet; thence South 21 °52'07" West 158.40 feet; thence South 56'49'17" West 946.84 feet to the East line of the northeast quarter of said Section 30; thence leaving said river centerline, South 00°01'28" West along said East line 374.64 feet to the southeast corner of said northeast quarter of said Section 30; thence South 89°46'01" West 323.71 feet along the centerline of said Section 30 to the centerline of the Deschutes River; thence South 41 °57'01" West along said river centerline 508.10 feet; thence South 29°03'17" West 267.69 feet; thence South 43°04'49" West 253.29 feet; thence North 72°00'25" West 246.03 feet; thence North 49°53'57" West 248.40 feet; thence West 150.00 feet; thence South 54°17'36" West 197.04 feet; thence South 23°11'55" West 114.24 feet; thence South 09°07'18" West 359.55 feet; thence South 39°05'02" East 843.83 feet; thence South 01 °44'09" East 330.15 feet; thence South 16°41'57" West 313.21 feet; thence South 28'53'12" West 331.21 feet; thence South 01 °57'09" West 440.26 feet; thence South 21 °52'45" Fast 684.29 feet; thence Scnith 02°.51'45" West 600.75 feet; thence South 40"25'34" West 354.68 feet; thence South 83°50'09'West 251.45 feet; thence North 41 ° l2' 17" West 288.43 feet; thence North 12°56'23" West 468.91 feet; thence North 57'09'18" West 282.10 feet; thence North 82°20'00" West 262.35 feet; thence South 86°38'45" West 254.83 feet; thence South 50°22'28" West 1569.18 feet; thence South 37°31'09" West 353.02 feet; thence South 32°39'39" West 463.25 feet; thence South 22°53'26" West 488.47 feet; thence South 420.00 feet; thence South 35c'20'24" East 240.00 feet; thence South 73'42'55" East 188.30 feet; thence North 78°01'26" East 210.00 feet; thence North 66°41'42" East 707.74 1),VI1)i \.1NSAN1)AW)( I,I1.'�1';( NI I Rt, tl'R11 MM. III ININI Rt . I L':11I,I 11'1 11)' 111111 I', A Il': I ttIIII It1"T ON1:(\;.".V1111':I,I(V1':ill 1I II( u':11 11 i � l til 11, �I'I I I Itt, IN'llt,(11?11,11•;9'-ill "ii Intl tS'I -161 i aric\arbdry.Ab 1 cbrvnry 25, 1993 P 1.1 0128-1048 feet; thence South 76013'06" East 272.86 feet; thence South 51 °57'23" East 704.76 feet; thence South 19044'49" East 207.18 feet; thence South 40°14'11" West 340.59 feet; thence South 66°5454" West 331.55 feet; thence West 500.00 feet; thence North 64°17'24" West 300.00 feet; thence North 43°00'00" West 91.67 feet to the East line of Government Lot 4 in Section 31 in said Township and Range; thence leaving said river centerline South 00°06'05" West along said East line 633.92 feet to the centerline of the Deschutes River; thence South 77°43'00" East along said river centerline 85.91 feet; thence South 36'19'37" East 211.00 feet; thence South 150.00 feet; thence South 40°22'29" West 310.64 feet to the East line of Government Lot 4 in Section 6 in Township 20 South and Range I 1 East; thence leaving said river centerline, South 01'03'42" East 874.86 feet to the southeast corner of said Government Lot 4; thence South 88°07'39" West 625.32 feet along the South line of said Government Lot 4 to the centerline of the Deschutes River; thence along said river centerline, South 220.21 feet; thence South 36°38'03" East 729.01 feet; thence South 34°24'46" East 615.77 feet; thence South 15'12'29" East 320.21 feet; thence South 06°07'50" West 271.55 feet; thence South 33°33'14" West 466.78 feet; thence South 22°09'35" West 296.93 feet; thence South 04037'27" West 272.89 feet; thence South 06° 12'03" East 453.65 feet; thence South 25'10'40" East 2.58.57 feet; thence South 56'06'15" East 231.31 feet; thence South 82'49'15" East 264.07 feet; thence North 74°19'27" East 262.77 feet; thence North 70°26'39" East 567.71 feet; thence North 80°37'52" East 220.99 feet; thence South 82°57' 15" East 896.77 feet; thence South 45°32'01" Last 243.85 feet; thence South 200.00 feet to the South line of the southeast quarter of said Section 6; thence leaving said centerline South 87'59'18" West 1051.23 feet to the southwest corner of the southeast quarter of said Section 6; thence South 00'13'46" West 2659.60 feet to the southwest corner of the northeast quarter of Section 7; thence South 00'13'46" West 1329.80 feet to the southwest corner of the northwest quarter of the southeast quarter of Section 7; thence North 88°08'21" East 1321.10 feet to the southeast corner of the northwest quarter of the southeast quarter of Section 7; thence South 00'16'25" West 1331.00 feet to the northwest corner of the northeast quarter of the northeast quarter of Section 18; thence South 00"06'18" West 2714.00 feet to the southwest corner of the southeast quarter of the northeast quarter of Section 18; thence North 89°23'50" East 1322.70 feet to the southeast corner of the northeast quarter of Section 18; thence North 89°04'31" East 1325.40 feet to the southeast corner of the West half of the northwest quarter of Section 17; thence North 89°04'31" East 1325.36 feet to the southwest corner of the southwest quarter of the northeast quarter of Section 17; thence North 00°00'35" West 1350.87 feet to the northwest corner of the southwest quarter of the northeast quarter of Section 17; thence North 89°30'30" lust 1324.68 feet to the northeast corner of the southwest quarter of the northeast quarter of Section 17; thence North 00°02'00" West 1340.86 feet to the southeast corner of the West half of the southeast quarter of Section 8; thence North 00°31'30" West 2670.48 feet to the northeast corner of the West half of the southeast quarter of Section 8; thence South 89'51'10" West 663.44 feet to the center -west -east 1/64 corner of Section 8; thence North 00037'35" West 2665.47 feet to the west -east 1/64 corner between Sections 5 .it ic\sibdry.dkb Fchninry 25. 1993 0128-1049 and 8; thence North 89°35'40" East 1087.63 feet along the south line of Section 5 and to westerly right-of-way of the Burlington Northern Railroad; thence along said westerly right-of-way as follows; thence North 04°55'15" West 1321.10 feet to the North line of the southeast quarter of southeast quarter of Section 5; thence South 89"42'01" West along said North line 25.08 feet; thence North 04'55'15" West 413.27 feet; thence North 85'04'45" East 25.00 feet; thence North 04'55'15" West 1693.70 feet; thence along a spiral curve to the right, the chord of which bears North 04°00'52" West 182.34 feet; thence 905.39 feet along the arc of a 1960.00 foot radius curve right (the long chord of which bears North 11 °00'45" East 897.36 feet); thence along a spiral curve to the right, the chord of which bears North 26°02'21" East 182.34 feet; thence North 26°56'45" East 665.22 feet to the South line of the southeast quarter of Section 32 in Township 19 South and Range 11 East; thence South 89°10'08" West 28.26 feet along said South line; thence North 26°56'45" East 1375.53 feet to the East line of said southeast quarter; thence South 00°14'53" East 54.70 feet along said East line; thence North 26°56'45" East 401.07 feet; thence along a spiral curve to the right, the chord of which bears North 27°20'54" East 121.05 feet; thence 654.54 feet along the arc of a 2914.67 foot radius curve right (the long chord of which bears North 34°34'45" East 653.16 feet); thence along a spiral curve right, the chord of which bears North 41 °48'36" East 121.05 feet; thence North 42°12'45" East 1401.80 feet; thence along a spiral curve to the left, the chord of which bears North 41 °4848" East 118.95 feet; thence 1137.30 feet along the arc of a 2814.79 foot radius curve left (the long chord of which bears North 29°26'15" East 1129.58 feet); thence along a spiral curve to the left, the chord of which bears North 17°03'44" East 118.95 feet; thence North 1639'45" East 4037.50 feet; thence leaving said westerly right-of-way North 06°58'29" East 116.67 feet; thence 531.86 feet along the arc of a 650.00 foot radius curve left (the long chord of which bears North 16°33'44" West 517.14 feet); thence North 40°00'11" West 216.57 feet; thence North 46°46'00" West 132.60 feet to the South line of the northwest quarter of the northeast quarter of Section 28 in Township 19 South and Range 11 East; thence South 89°30'48" West 450.68 feet to the southwest corner of said northwest quarter of said northeast quarter; thence South 89°30'48" West 2670.44 feet to the southwest corner of the northwest quarter of the northwest quarter of said Section 28; thence North 00°52'26" East 1324.16 feet to the point of beginning. REGISTERED PROFESSIONAL.. jD3,4'a X. 23j PD REGON K. DMEMAN 1 Ob 9 _j ericlerbdry.dkh February 25, 1993 I, 1 O:k LX(trr}). .1(-s" MAP OF $Cole 1" = 3000• descg� SUNRIVER INCORPORATION date 4/2,93 drawn JHS DAVID EVANS AND ASSOCIATE:;, ENC BOUNDARY Sle SRIC0001 — SRIC001C.DWC (716) 709 NW WALL STREET, SLTPE 102 BEND, OREGON 97701 (503)389-7814 P 1-4- 0128-1051 It is proposed that the City of Sunriver (City) be incorporated under Oregon Statutes. The City would consist of 4378 acres (6.84 square miles), with an initial permanent population of about 1700 persons, and an assessed value of approximately $654 million, (1992-93 values). The areas proposed for inclusion within the City of Sunriver are summarized below: TRACT A. Sunriver B. Business Park C. Two Rivers D. Undeveloped tract TOTALS AREA (Acres) ASSESSED VALUE 3278 647,112,435 90 6,369,705 606 83,795 404 482,625 4378 acres $654,048,560 The major part of this area, the present Sunriver, is a Planned Unit Development, and is self-governing to the extent of already providing some urban services. In considering the time frame for formation of the City, and the assumption and addition to the services now provided by the Sunriver Owners Association (SROA), it is proposed that the City will undertake providing municipal services in phases. Upon incorporation the City would initially provide Planning Services (zoning, compliance with Land Conservation and Development Commission requirements, building permits, inspections, etc.), and general administrative services. On January 1st., 1995 the City would provide Fire and Emergency Services, and would begin Police and -Public Works functions on July 1st., 1995. It is anticipated that the City will first endeavor to contract with existing service providers, e.g. SROA, Deschutes County, to continue to provide the urban services presently provided within the proposed City. However, in the event that those providers are unable or unwilling to provide the services, the proposed tax base and the general revenue powers of the City will enable it to provide a reasonable level of municipal services. Except for County roads, the approximately five miles of public street right-of-way within the proposed City would become the maintenance responsibility of the new City upon its incorporation. Responsibility for maintenance of the approximately 80 miles of private roads controlled by SROA in the proposed City will be assumed July 1st., 1995, subject to acquisition by the City, either by transfer from the SROA, or by exercise of the power of eminent domain. The dedication of these private roads to the City should be a priority item for the City Council. Sunriver EFS April 17, 1993 Page 2 0128-1052 The City w.ill rely upon income produced by an Ad -Valorem tax, to be supplemented by transient room taxes, gasoline, liquor, cigarette and privilege taxes. Formation of the City is independent of the Consolidated Plan of Sunriver. It is intended that the SROA will continue to manage private recreational facilities, common properties, etc., thus preserving the rights of the owners in these assets/facilities. Frcm time to time, it may be desirable for the City and the SROA to contract with each other for services and the use of equipment. The formation of the City will not relieve property owners of their responsibility to abide by the Covenants, Conditions and Restrictions (CC & R's) which may burden their real property, nor will it replace SROA's power to enforce its CC & R's. T,';e City, with its access to new sources of revenue not now available to the Association, with its ability to arrange lower cost, long-term financing to fund major capital expenditures, �.-ith its power to enact and enforce ordinances, with its reduced iability exposure under Oregon Statutes, along with other benefits described in "Statement of Reasons to Incorporate", should be in a position to complement and reinforce the efforts of the SROA to maintain and improve the quality of life that continues to attract residents, guests, and visitors to the Sunriver community. Sunriver EFS April 17, 1993 Page 3 0128-1053 The purpose of this study is to provide information for citizens and governmental leaders to use in evaluating the incorporation of the City of Sunriver. The specific procedure for incorporating a city is contained in ORS. 221.010 to 221.106. This process is described as follows: A. A petition for incorporation, in the form prescribed by the Secretary of State, shall be filed with the County Clerk. The petition should be accompanied by an economic feasibility study (contained herein), concerning the proposed city. B. The County Clerk will date and time -stamp the petition and authorize its circulation to the electorate. C. The petition shall contain the name of the proposed city and designate the names and addresses of not more than three persons as chief petitioners, who shall be electors registered within the boundaries of the proposed city. The petition shall include a proposed tax base sufficient to support an adequate level of municipal services, and a declaration of the rate of taxation necessary to raise sufficient revenue which, when combined with other available revenue, will cover estimated city expenses. A map indicating the boundaries of the proposed city shall be attached to the petition. D. The signatures of 20% of the voters of the area proposed to be incorporated must be affixed to the petition. For Sunriver, this translates to 20% of approximately 1220 registered voters, or 244 signatures. The petition with the required signatures is filed with the County Board of Commissioners, who will then fix the time and place for a hearing on the petition. At the hearing, any interested person may appear and present oral or written objections to the granting of the petition, the forming of the proposed city, or the estimated rate of taxation set forth in the petition. Once the study of the proposal and all necessary hearings have been completed, the Commissioners may either approve the petition as submitted, require modification of the boundaries or deny the request if it fails to comply with applicable statutes. The proposed City of Sunriver is not within three miles of an incorporated city and so ORS 221.030 (4), requiring review and approval by such an existing city does not apply. Sunriver EFS April 17, 1993 Page 4 0128-1054 E. If approved, an order for holding an election on the proposal shall be fixed on the date of the next regular state-wide primary or general election that is not sooner than ninety days after the date of the order. The next available qualifying election date is May 1999. F. At the same election, five council members for the proposed city shall be elected from a slate of nominees. G. Not more than thirty days after the election, the County Board of Commissioners shall proclaim whether a majority of the votes cast on the proposition favors incorporation and, if passed, which candidates for the city council are elected. 1. If the majority of votes cast favors incorporation, the area described in the notice of election is incorporated as a city from the date of the election. 2. The tax base approved by the voters at the election will be the initial tax base of the new city, effective July 1, 1999 (However, it is anticipated the tax base will not be levied until July 1, 1995). 3. The five city council members elected shall take office not later than ten days after the proclamation of election results by the Board of Commissioners. Sunriver EFS April 17, 1993 Page 5 • [819132914 " 1 The incorporation of Sunriver will provide for its residents and other property owners benefits not available under the present community association and County government. Such advantages fall largely within the broad areas of finance and more effective local control. 1. FINANCIAL BENEFITS A. An Ad Valorem property tax, together with revenues enumerated below, would provide the City with an income that is both stable and adequate to ensure ongoing services and future needs as required by the community. B. New revenues, not available to the association, would be generated through imposition of: (1) a room tax upon income derived from the short term rental of residential units. (2) privilege taxes upon providers of services and (3) the receipt of State revenues for cities including cigarette, gas and liquor taxes. The additional sources of revenue will permit the funding of adequate road maintenance, a retirement plan for all employees and capital improvements. C. The ability to issue bonds to fund projects at rates of interest less than provided under typical commercial loan arrangements; for example, the funding to replace the present inadequate Fire/EMS facility. Bond issuing authority up to 3% of the assessed value is available to a city. At current assessments, this would equate to over $19,000,000 of bonding capacity for the proposed city. D. The availability of commercial loans at preferred rates of interest not available to a community association. E. The availability of grants and loans from the state and federal governments provided only to cities. 2. LOCAL CONTROL A. Locally elected officials are able to be held more accountable because they hold office subject to the citizens' power of recall. Legislation adopted by the City is subject to referendum or may be proposed by initiative under powers reserved to the citizens by the Oregon Constitution. B. The ability to initiate, pass and enforce ordinances locally to deal effectively with the multitude of behavioral and other problems confronting the community. C. The ability to respond rapidly to matters of concern to the Sunriver community. Sunriver EFS April 17, 1993 Page 6 3. GENERAL ADVANTAGES 0128-1056 A. Limitation of liability in state courts as provided under Oregon Tort Claims Act (OTCA). Current liability of the SROA is essentially unlimited in terms of judgments which might be assessed against the SROA. The OTCA, however, limits the liability of a city to the following amounts: $50,000 per occurrence for property damage. $100,000 per person for personal injury sustained in a single occurrence. $500,000 for any number of claimants in a single occurrence. In addition, there are specific immunities enjoyed by a city for certain tort liabilities. These include injuries compensable by Workers Compensation and injuries resulting from acts of public employees who, by law, are privileged when acting in their official capacities, e.g. judges and legislators. Tort liability immunity also exists for faulty performance of a discretionary function. B. Availability to the City of the resources of technical and professional services available only to incorporated areas. C. Ability to better attract and hold qualified applicants for career positions, and the ability to provide additional benefits (i.e. retirement) for all municipal employees. D.- Realization of the Power of Eminent Domain to permit acquisition of property when and if necessary. Oregon law substantially restricts the exercise of this power to preclude abuse. E. Retention by all property owners of control over their proprietary interests through continuation of the Consolidated Plan of Sunriver and preservation of their voting rights in the Sunriver Owners Association. F. Land use regulations including comprehensive planning, land partitioning and zoning would be handled by people living within the City rather than by the County. Sunriver EFS April 17, 1993 Page 7 t . SUGGESTED OTHER ADVANTAGES 0128-1057 A. The cost of City elections held at the time of general or primary elections would be borne by the county. All chargeable costs incurred by the County Elections Officer for the conduct of a city election held on a date other then the primary or general election shall be paid by the City. B. The City's business will be conducted in public. As a municipality, the City would come under the state open meeting laws. C. The City would have a stronger position than an association in dealing with other governmental bodies, i.e. Deschutes County, the U.S. Forest Service, etc. Sunriver EFS April 17, 1993 Page 8 1:0-10 * 4101 3A 4 32014N 11-M :10111 30MO 4 A discussion of the corporate boundaries of Sunriver involves the following four distinct segments. A. The existing boundary of Sunriver, as described in the Consolidated Plan of Sunriver, and Exhibit "A", "The Boundary of Sunriver, Property Description". These boundaries form the basic profile of the new City and include the majority of the facilities and population base described elsewhere. This area currently receives services through the SROA. The City will ultimately provide comparable or better Planning, Police, Fire, Emergency and Public Works services. The Sunriver Utilities Company, a private entity, would continue. B. The Sunriver Business Park. Upon incorporation, the Business Park will become: part of the new City, so as to include a commercial/light industrial development that is integral to the Sunriver community as a whole. The area is currently served by existing utility services and this would continue under the new City. The City would be obliged to provide road and street lighting maintenance to this area, for those roads dedicated to the public. Currently, fire protection is provided by the LaPine Rural Fire Protection District, and police service by the Deschutes County Sheriff. The new City would provide police service and would also furnish fire protection, either by continuation of a contract with the LaPine Rural Fire Protection District or by extension of service by the Sunriver Fire Department. C. Two Rivers, a 606 acre tract to the South of Sunriver proper, lying basically West of S. Century Drive, and East of tie Big Deschutes River. This area, acquired by Connecticut Mutual, planned for homesites, a golf course, and other recreational amenities, has been sold to Lowe Enterprises, the new owner of Sunriver Lodge and Resort. It is understood that similar development is planned, with utility services (sewer/water) to be provided by the Sunriver Utilities Company. The City would provide Police, Fire/EMS and Public Works services. Contiguous to Sunriver, and with initial planning similar to the Sunriver development concept, this area would appear to be log_cally a part of the Sunriver urban area. Sunriver EFS April 17, 1993 Page 9 0128-1059 D. An undeveloped tract of 404 acres lying to the South of the Sunriver Business Park, and East of S. Century Drive (and the area noted in "C", above), and West of the Burlington Northern Railroad. With Sunriver surrounded by Forest Service lands on the West, North, and East, the only area for expansion lies to the South. This acreage is currently in three parcels, separated from the railroad by Forest Service land. With the City of Sunriver bordering these parcels on the West and North, this area will benefit by its proximity to the City and its facilities, and the City will be concerned with future development of this property. This area is currently zoned F-2 by the County. Sunriver EFS April 17, 1993 Page 10 The Resource and Expense Budget, with accompanying footnotes backing up each line item, contemplates a full City operation for a City of Sunriver. In addition to performing the Planning function, as required by the Oregon Statutes, it is proposed that the City will assume from the Sunriver Owners Association (SROA) major functions now performed by the Association, Fire/EMS, Police, and Public works (including Road Maintenance). Assuming a successful election in May 1994 approving the incorporation of Sunriver, our proposal suggests that the period May 1994 through December 1994 be devoted to initiating the Planning function, arranging insurance, installing accounting procedures, enacting a City Charter, formulating and executing basic ordinances, accomplishing agreements with utility providers, and transacting any other business necessary to assure a smooth transition of major services January 1, 1995, if the City and SROA agree. If they cannot agree, the proposed budget gives the City the resources to provide a reasonable level of municipal services. Municipal services would be phased in as follows: Planning and Administrative June 1, 1994 Fire/EMS January 1, 1995 Police July 1, 1995 Public Works July 1, 1995 Although Oregon Statutes require that only first and third year budgets be shown in the Economic Feasibility Study, we have purposely included a second year budget to show more clearly the budgetary transition resulting from the gradual, phasing -in approach. The fiscal year will begin on July 1 annually. The proposal also contemplates: A. Purchase of equipment from SROA as of 1/1/95 to perform Fire/EMS, Police, and Public Works functions. Alternatively, the City may elect to purchase some or all necessary equipment from other sources. Provision for such acquisitions is recognized in the surpluses in the three annual budgets. B. Recognizing that Police and Public Works functions will not be performed by the City until 7/1/95 (six months following acquisition) the budget provides for lease -back to SROA of the equipment needed by SROA to perform these two functions for the period 1/1/95 to 7/1/95 (line item #111). C. Since it is necessary that the City own some of SROA's private roads, the budget includes an estimate for the cost of condemnation under the power of eminent domain should this be necessary in lieu of negotiated acquisition of the roads. Again, the money for such acquisitions may come from Sunriver EFS April 17, 1993 Page 11 0128-1451 the surpluses in the three annual budgets or through the Council's decision to levy more of the approved tax base than the proposed budget contemplates. D. It is anticipated that ordinances and agreements needed to initiate the income cycle from revenue sources including room tax, privilege taxes, state revenue sharing, etc. will be prepared and enacted immediately following a successful May 1994 election. Business Park, 90 Acres Tvo Rivers, a 606 acre tract, South of Sunriver An undeveloped 404 acre tract, South of Sunriver The above land parcels are included in the proposed City boundaries. Business Park The budget provides for police and fire protection as well as road maintenance. Sewer and water service is already furnished by Sunriver Utilities Co. One additional police officer is included in the Police budget to service this area. It is assumed that the City will either provide fire protection by the Sunriver Fire Department, or by continuing the contractual arrangement currently in place with the La Pine Fire District, assuming the cost of approximately $20,000/ year. Two Rivers This tract of approximately 606 acres is to be developed by Lowe Enterprises. The area is tentatively planned for one golf course and about 15 home sites in the first stage, to be followed by additional amenities and homesites in subsequent stages. Our budget assumes that the development will be serviced by Sunriver Utilities Co. for sewer and water and that the City will furnish Police, Fire Protection, and Road Maintenance. The cost of an additional police officer is included in the budget and it is assumed that the Sunriver Fire Department will provide fire protection. An Undeveloped 404 Acre Tract This tract, consisting of 3 separate land parcels, is proposed for inclusion within the City boundaries primarily to provide buildable land to assure orderly development of the area and to assure the ability of the City to meet state land use goals. It should not initially require any services. Planning, City Attorney, Municipal Judge The Sunriver Incorporation Committee has met with representatives of various Central Oregon governmental agencies, reviewed their budgets, consulted with the League of Oregon Cities, and spoken with professionals either now performing or capable of handling responsibilities as Planner, Municipal Judge, and City Attorney on a part time basis. Our budget provides for these expenses. Sunriver EFS April 17, 1993 Page 12 Comprehensive Plan 0128.1062 The City proposes to complete a Comprehensive Plan, contracting with either a qualified independent firm or the Deschutes County Community Development Department, over a 3 year period following initial incorporation. As the major portion of the area proposed for inclusion in the City is already addressed in the Master Plan of Sunriver and the accompanying land use maps, completion of a Comprehensive Plan will not be as complex as it would be were the aforementioned documents not already in place. Ad Valorem Property Tax This proposal provides for an Ad Valorem tax of $1.50 per $1000 of assessed values for the second and third fiscal years. The combined assessed value of the area proposed for inclusion within the City boundaries as of the 1992-1993 tax year is approximately $654 million. In the first fiscal year there is a surplus of revenues over expenses, since the first major functions are to be phased in as previously indicated. This surplus will be utilized to fund acquisition of equipment needed to perform functions assumed by the City. During the second and third years it is necessary to levy a tax estimated at $1.50 per $1000 to produce sufficient revenue to cover budgeted expenses and allow for anticipated equipment purchases and replacements. The tax rate of $1.50 per $1000 of assessed value has been set to c:)ver (1) The excess of expense over non -property tax income for the 2nd. and 3rd. budget years and (2) Cash requirements for replacement of equipment and purchase of new equipment. Tax Base It i.; proposed that a tax base of $2,000,000 be requested for approval at the May 1994 election. The proposed tax rate of $1.50 per $1000 of assessed values for the second and third budget years equates to utilizing only $981,000 of the tax base, as shown in our budget estimate. Thus it is anticipated that it s'.ould not be necessary for the City Council to request voter 4--,roval for an increased tax base until several years after the 19.6-1997 budget year. The $2,000,000 tax base also provides sufficient cushion to provide the City Council with funds to offset any unanticipated reduction of tax revenues which might result from a severe economic downturn or acts of the state legislature. Should it be necessary for the City to levy a tax utilizing the full tax base of $2,000,000, based on current assessed values of $654,000,000, the tax rate would be $3.06 per 1, 000. Sunriver EFS April 17, 1993 Page 13 BUDGET - CITY OF SUNRIVRR 0128-1063 RESOURCES Account Item 7/1/94-95 7/1/95-96 7/1/96-97 100 Ambulance Rev. $24,476 $51,399 $53,968 101 Cigarette Tax 51117 5,418 5,719 102 Gas Tax 781081 82,674 87,267 103 Liquor Tax 13,566 14,364 15,162 104 Licenses/Permits 2,000 5,250 5,512 105 Interest 101000 15,000 20,000 106 Municipal Court ------ 30,000 30,000 107 Privilege Taxes 240,891 252,936 265,583 108 Planning Fees 31500 3,000 2,500 109 Room Tax 1,263,072 1,338,857 1,419,188 (Managed Units) 110 Room tax 166,742 176,747 187,352 (Private rentals) 111 Lease of Eqm't 33,610 ------ ------ (To SROA) 112 U.S.F.S. Revenue ------ ------ ------ 113 911 System 41250 4,500 4,750 Sub -Total $1,845,305 $1,980,145 $2,097,001 Ad Valorem 114 Property Tax ----------- $981,000 $981,000 Total Resources $1,845,305 $2,961,145 $3,078,001 Sunriver EFS April 17, 1993 Page 14 N. 0128--1064 EXPXNSIB Account Item 7/1/94-95 7/1/95-96 7/1/96-97 200 Accounting $40,000 $55,000 $70,000 202 Administration 208,653 219,086 230,040 204 City Council 2,500 1,500 2,000 206 City Attorney 20,000 20,000 20,000 208 Condemnation 25,000 ------ ------ 212 Dues, L.O.C. 600 650 700 214 Insurance 30,000 31,500 33,075 216 Jail Space ------ 30,000 30,000 218 Public Safety 15,234 729,821 766,313 220 Public Works 15,667 677,755 695,587 222 Fire/EMS 322,408 676,473 697,945 224 Municipal Court ------ 30,000 30,000 226 911 System 4,250 4,500 4,750 228 Contracts for 25,000 25,000 25,000 Community Developm't 230 Planning 20,000 21,000 22,000 232 Comp. Plan Prep. 17,000 17,000 17,000 234 Start Up Expenses 60,000 ------ ------ Sub-Total $806,312 $2,539,285 $2,644,410 Contingency $75,000 $132,238 $137,757 Total Expenses $881,312 $2,666,249 $2,776,631 Unappropriated ending balance $963,993 $294,896 $301,370 Grand Total $1,845,305 $2,961,145 $3,078,001 Sunriver EFS April 17, 1993 Page 15 146191 a I III 4A 2.4111-77r RESOURCES 100 Basis - 1993 SROA budget, adjusted to 1/1/95 including 5% per year increment; first year budget 1/2 of annual as functions performed for 1/2 of the first fiscal year. 101 Cigarette, gas, and liquor tax revenues are based on per capita rates of $3.01; $45.93; $7.98 respectively (latest thru figures available from the League of Oregon Cities). Resident population estimates: 1700, 1800, 1900 for 1st., 103 2nd., 3rd. years respectively. 104 Based on review of other Central Oregon City budgets for business permits and licenses. 105 Based on our estimate of investable funds. 106 An offset vs. expense for Municipal Court cost center (see expense list). Court operation is usually a profit center, based upon review of Sisters and other Central Oregon budgets. 107 Based upon actual 1991 gross revenues obtained from telephone, gas, water, sewer, electric and waste disposal providers, adjusted by 5% per year for growth and inflation. Proposed tax rates: telephone 4%; gas/waste disposal 3%; water/sewer 3 1/2%; electric 3 1/2%. 108 Based upon review of other, comparable City budgets. 109 Based upon county room tax receipts for 7/1/91-92 of $1,060,500 adjusted for 6% annual increase. 110 Based upon estimate of $2 million current gross rentals per year for privately rented units at 7% tax, adjusted by 6% per year for annual increase. 111 Estimate of lease back by City to SROA of police, road maintenance equipment for the period 1/1 - 7/1/95; figures based upon annual SROA depreciation schedules for autos, equipment, furniture and fixtures for Police, Public Works Departments. As shown on current schedules, $67,220 annual rate times 1/2 year. 112 Currently the County is not distributing any portion of its U.S. Forest Service Revenue to cities as in prior years. 113 A "pass thru" item; offsets identical expense charge. 114 Amount needed to supplement non -property tax income and provide funds for equipment acquisition and replacement. Sunriver EFS April 17, 1993 Page 16 FOOTNOTES RRSOURCES/EXPENIAL 0128-1066 EXPENSES 200 Based on an estimate ffor aseveralCPA CentralwlOregonth ercitiestise n in accounting including annual audit. adjusted for 40$ burden. 202 Reference point, SROA 1993 budget, depreciation of Includes office rent based on 25005q. ft, auto, furniture and fixtures, equipment, other expenses, and salaries of the City manager and executive secretary. 204 Travel, education, miscellaneous expenses no salaries contemplated. review of Bend and 206 Based on discussions with Sisters, qualified local Redmond budgets, also consultations with erve the City of Sunriver on a attorneys available to s part-time basis. appraisal and maps, 208 Estimate of the cost of legal services, should a condemnation action be needed to acquire roads and/or equipment. The purchase price of any proPeY acquired would have to come from unappropriated funds or the tax base. 212 Based on per capita resident charges for membership in the League of Oregon Cities. 214 Based on estimate from R. Egan, manager of Cities Insurance Services, considerably lower than 1993 SROA budget $97,826 Se & 0. or umbrella c Se D. loverage needed and (2) lower (ic s, underlying liability limits required due to lower statutory limits for cities. 216 Based on contracting with Deschutes County to buy two beds in the County jail, at an estimated cost of 540/day for 365 days. BY decriminalizing City ordinances all or part of this cost may be avoidable. 218 Reference point is the 1993 SROA budget-, adjusted to include a 40% burden load (employee benefits including employer contributions, medical, retirement, etc.) and inclusive of 2 added officers to patrol the Business Park and Two Rivers, Enterprises, the 606 acre tract to be developed by Lowewhich is included in the City boundaries. Also includes an investigator, assumes continued re�ntae�f police for inflationffice • the Mall, and adjusts 5% p year Depreciation first year only; full operation beginning 7/1/95. 220 Includes $300k for road maintenance vs. $100k in 1993 SRO ncludes 40% burden load and 5% per year budget; also i of 1.9miles inflation adjustment, maintenance space od rentalat the Business Park and provides for p f rental 35c/ft./month from SRP (D. Btoonlystifull mate ooperation value). Depreciation first year beginning 7/1/95. 222 Includes 40% burden load, depreciation of autos and equipment based on current SROAschedules, and spice rintal of existing buildings owned by SRP and 35c/ft./month. (D. Bratton estimate of rental value). Sunriver EFS April 17, 1993 Page 17 0128-1067 224 Offset vs. resource income of same amount. Court operations typically are profit centers. 226 Offset vs. resource item of same amount. 228 Assumes funding of one or more local organizations where economic benefit to the community is clearly demonstrated. 230 Assumes hiring of Planner (ORS requires cities to perform Planning function); estimate based upon Sisters experience and discussions with qualified, available part-time planners in the Bend/Redmond/Sisters area. 232 Assumes preparation of the Comprehensive Plan for the new City over a three year period following incorporation; estimated cost $51k amortized over three years. 234 To allow for special first year expenses, legal, ordinance preparation, agreements with utilities, miscellaneous other expenses. Sunriver EFS April 17, 1993 Page 18 0.28 -lass The proposed City of Sunriver would provide the following services to the community within the City boundaries. These would be phased in as described in the "Proposal" section. 1.Police Protection; Fire/EMS; Road Maintenance: The City will provide a full municipal police service using 19 full time employees. The present security personnel/deputy sheriff service provided by SROA uses 11 people to serve just Sunriver. Qualified members of the SROA security force could be transferred to the City and would be augmented by 3 additional positions to provide full municipal police service (including criminal investigation), enforcing City and state laws in all areas of the City. It is envisioned that the municipal laws to be enacted by the City will be consistent with present SROA Rules and Regulations. A "holding" facility would be maintained in Sunriver, and the City would seek an arrangement with the Deschutes County Sheriff for use of County jail facilities. Fire and Emergency Medical Services, maintenance of public roads, and other necessary services will be phased in over time, as previously mentioned. The objective must be to achieve an orderly transfer of existing services from the SROA, and augmentation of these services as necessary in consideration of the larger areas of responsibility of the City. 2.Administration: A. City administration will be performed by a full time chief executive appointed by the Council and supported by appropriate secretarial/clerical staff. B. Planning (City and Urban Growth): Initially the City might contract with the Community Development Department, which Planning services (zoning, comprehensive with another competent party. Eventually, establish its own Planning Department. inspections would continue to be provided b fee basis. C. City Attorney D. Fiscal management and accounting. Deschutes County now provides plan, etc.), or the City would Building code y the County on a Sunriver EFS April 17, 1993 Page 19 (,128-1069 The above functions will be performed by the Administrative Staff and part-time hired specialists. The contract City Attorney will represent the City of Sunriver on civil matters. A part-time municipal judge will preside over the Municipal Court and the court would be supported by appropriate part-time clerical staff. Sunriver EFS April 17, 1993 Page 20 A. Police protection is now provided by employees of the SROA Department of Public Safety, utilizing equipment owned by the Association. When the City assumes this function, it will relieve the Association of a major expense. At present, SROA security officers are deputized by the County Sheriff. City Police will have municipal police powers, so that this will no longer be necessary. City police will also relieve the Sheriff of responsibility for the Business Park and other areas within the City boundaries. B. Fire and Emergency Medical services are now provided by SROA employees and volunteers, using equipment owned by the Association. When the City assumes this responsibility, it will relieve the Association budget of its largest cost center. C. Road maintenance within Sunriver is now provided by SROA employees, using equipment owned by the Association, and supplemented, as necessary, by contracts with private providers. The City will maintain roads dedicated to the public, relieving the Association of these costs. The Business Park and other areas proposed for inclusion in the City will benefit from a road and street lighting maintenance program. County roads located within the City remain the maintenance responsibility of Deschutes County until such time as the City and County agree that the City would maintain them. D. The Association's liability and insurance expense should decrease when the City assumes responsibility for providing Police, Fire/EMS and Road Maintenance services. The City should seek to purchase, lease or otherwise acquire from the Association the equipment now used to perform these services, further reducing the Association's expenses. E. Planning, compliance with LCDC requirements, zoning, building permits, inspections, etc., are now provided by the County Community Development Department. This arrangement might be continued through an agreement with the County, until the City's own staff is able to carry out all planning functions. The Association will continue its Design Committee function, with its separate fee structure. Sunriver EFS April 17, 1993 Page 21 0128-1071 F. The LaPine Rural Fire Protection District presently serves the Business Park area of the City. Should the City cause that area to be withdrawn from the Fire District, the Fire District will lose tax revenue from that area. However, after the withdrawal, continued growth in the remaining areas of the Fire District should offset any loss caused by the withdrawal. Following the withdrawal, the City could still determine it was wise to have a contract with the Fire District to provide service to parts of the City or to provide mutual or automatic aid between the agencies. Sunriver EFS April 17, 1993 Page 22 BI8TORY OF BUNRIVAR Sunriver is a tract of land about five miles long, bordered by eight and one half miles of the Deschutes River. It is largely meadow land grading upwards to stands of lodge pole and ponderosa pine with some aspen and spruce. During World War II, the government bought the 5,500 acres which made up the original site of Sunriver to be used by the Army Corps of Engineers as a training area for bridge building, amphibious assault and construction of roads and canals. Built in 1944 as a self contained City, the camp was complete with roads, water and sewage systems and all buildings considered necessary to sustain a population of 10,000. Sunriver came about when Don McCallum and John Gray met with others with the idea that a tract of land bordering the Deschutes Fiver would be a perfect place for a planned community. The two principals hired a cadre of planning experts from San Francisco, highly skilled in land planning to map and lay out the cul-de-sac motif of the development. A noted architect designed the lodge and lodge condos and a designer was engaged to plan the South Golf Course. Others set the pattern for the Cluster Cabins and Mountain View Lodges. During the planning stages, and even before the actual construction began, there was a decision that there should be a strong focus on the environment and conservation. Initial development started in 1967 and the first plat was filed in 1968. The original area covered approximately 5,500 acres, but in 1978, approximately 2,200 acres were sold to the United States Forest Service. The property is now confined generally to: the Deschutes River to the West, the Burlington Northern Railroad to the East, Spring River Road to the South and the east/west centerline of Section 20, T.19S, R.11E to the North. Original approvals gave Sunriver an overall density of 1.5 housing units per acre. The document defining the general planning and governance of the community was the Plan of Sunriver. From the very first, the physical layout was to be in the form of villages, each with a degree of autonomy. In addition, each cul-de-sac, which. consisted of a circle of homes surrounding a section of "common ground" was independent to the extent that a majority of the landowners bordering the common ground could build a pool or play grounds thereon. Thus, instead of being a unified corporate body, Sunriver at first was a loosely organized federation of contiguous villages, such as Meadow Village, Overlook Park and Skypark. The general movement, however, was toward unity. Sunriver EFS April 17, 1993 Page 23 0128-10r3 Sunriver, at first, formed around a nucleus consisting of the Lodge and the South golf course, Meadow Village, the Cluster Cabins, the Pole Houses and the condominiums named Meadow Houses. The Lodge Condominiums and the Mountain View Lodges were under construction by 1968 to 1970. All lines for utilities were underground, the street lights were on wooden poles and the streets were red lava rock oiled, since supplanted by black -top for reasons of maintenance. The original master plan map and the Plan of Sunriver showed Sunriver to be a development of mixed uses. The intent from the beginning was to create a self-contained community with a mixture of single-family and multi -family residences, retail, light industrial, a variety of recreation facilities, an airport, schools, fire and police protection, water system, sewer system with treatment facilities, open spaces, and a self-governing owners association. The development, as it has progressed, has followed very true to form. The original master plans were conceptual in nature and subject to revision as various conditions warranted. All this was in line with the widely circulated public relations claims that Sunriver was planned and governed to conserve the natural environment where wildlife was protected and nurtured and where the purity of the natural lifestyle was preserved. The owners took tentative steps toward self-government when they set up the beginnings of an owner's association with the election of a town council. Prior to this, council members were employees of the developer, appointed by the developer. In December, 1973 the Sunriver Owners Association incorporated under Oregon Non - Profit Corporation Law and the elected Board assumed an active role in the affairs of Sunriver and acted in an advisory capacity to the developer. At the outset and during the initial planning era, the central vision was that Sunriver was to be a planned town for permanent residents, a rural suburb which was designed to incorporate new ideas of community living and to avoid many of the unpleasant aspects of city living. Then, in 1972, occurred a decisive meeting of the sales staff, in which the emphasis was to be on the sale of lots. Thus was introduced the rentals for vacationers and the shifting of concerns from a residential community to that of a destination resort. The lodge, originally designed to cater to permanent homeowners and their guests, was converted to a focus for the resort set. The golf course, instead of concentrating on play by residents, evolved into a commercial enterprise, as did most of the original amenities. The commercial aspects of the resort took a sharp turn upward when Connecticut Mutual Insurance company acquired the stock of John Gray in 1974 and continued its control as the developer. Sunriver EFS April 17, 1993 Page 24 0128-10'74 By 1976, some 1,100 acres had been developed. Sunriver Properties, the developer, decided to market the undeveloped areas in California, necessitating a new approach to the CC and R.'s to meet with a new Plan of Sunriver, Phase 2 and a separate Maintenance fund, Owners Association, etc. With the turn down of the economy in the mid -701s, the developer proposed to sell 3,200 acres to the United States Forest Service. This was disapproved by the County in the fall of 1976; a compromise was reached and 2,200 acres were sold in 1978, resulting in a remaining community of some 3,300 acres. Cross easements were made between the two Phases to fund police, fire and other expenses and to provide for the use of recreation amenities, etc. This division was artificial and the two Phases were reunited by adoption of the Consolidated Plan of Sunriver effective January, 1986. This merged activities, maintenance funds and owners associations. Parallel to the effort to create the Consolidated Plan, a Transition Council was working under the developer's mandate to program a successful transfer of administrative control and responsibility from the developer to the Sunriver Owners Association. This three year effort by a volunteer Council culminated in January, 1987, with the formal transfer of administration to the Sunriver Owners Association, which now exercised the powers of "Administrator" under the Consolidated Plan, through its nine member Board of Directors. All areas of the Sunriver community North and West of Spring River Road and Century Drive have now been subjected to the Consolidated Plan of Sunriver. Connecticut Mutual relinquished its influence in the community with the sale of the Resort and Utility Company to Lowe Enterprises in the spring of 1993. Sunriver EFS April 17, 1993 Page 25 0128-1075 Sunriver is a Planned Unit Development under the Deschutes County Comprehensive Plan and a Planned Community Zone under County zoning ordinances. It is a "private" community with defined boundaries and is internally zoned (single and multi -family residential, commercial, resort, etc.) through adoption by the County of a Master Plan of Sunriver. The community contains a number of "villages", each subject to specific Declarations of Covenants, Conditions and Restrictions (CC & R's). It has a "charter" in the Consolidated Plan of Sunriver, dated November, 1985. This plan sets forth administrative, financial and enforcement powers of the administrator (Sunriver Owners Association), provides for the use of property within the boundaries of Sunriver, delineates the rights and obligations of ownership, etc.. All unit owners are members of the Association, as are owners of the resort and commercial property within the boundaries of Sunriver. Rights and obligations of owners are also contained in the CC & R's pertaining to the particular geographic area of Sunriver. The nine member Board of Directors of the Association is elected by the membership at the annual meeting in August of each year; three members are elected each year for three year terms. The Board acts as Administrator of Sunriver and conducts the business of the Association subject to limitations contained in the Consolidated Plan of Sunriver. Other governing documents are the Articles of Incorporation and the Sunriver Owners Association By -Laws. The Board meets at least once a month in a public meeting and provides policy guidance to the General Manager. The Board employs a General Manager to whom it has delegated day- to-day management responsibilities. The Manager, in turn, supervises employees of the Association (e.g. Public Safety, Fire, Public Works, etc.) The Association budget is adopted by the Board and the fee structure is approved annually by the Board. An accounting department handles necessary income and expense accounts; a member of the Board acts as Treasurer for the Association. All expenditures for capital improvements and additions in excess of $25,000 require the affirmative vote of not less than 60% of the votes cast by written ballot directed to all owners. The same requirement exists for the levy of any special assessment. The association is a non-profit entity. Committees (Finance, Recreation, Planning, etc.), staffed by volunteers, assist the Board in developing policies, guidelines, rules and regulations, etc. These committees advise the Board. The Design Committee is charged by the Consolidated Plan of Sunriver and CC & R's with review and approval of all plans for development of areas within Sunriver. It issues Sunriver permits for approved plans. Sunriver is largely self-sufficient, with its own police, fire, emergency medical, road and bike path maintenance and construction, etc. The community relies on Deschutes County for deputizing of law enforcement officers, Sunriver EFS April 17, 1993 Page 26 0128.1076 access to courts, jail space, compliance with LCDC requirements, zoning actions and enforcement, issuance of building permits, technical inspections and dispatch service through "9-1-111. Note that no description of existing governance is provided for the Business Park and other property proposed for inclusion in the City as all are governed solely by Deschutes County. The Business Park does, however, have its own association with membership consisting of the 29 lot owners. This organization would continue to function. Sunriver EFS April 17, 1993 Page 27 0128-1077 Sunriver has been formed by recent geological events. To the north, a large lava flow (Lava Butte), has occurred in the Post- Mazama time (Approximately 6150 years). All the surrounding area has large deposits of Mazama Pumice forming the soil of Sunriver. To the East, all the area has been influenced by the Newberry Mountain Complex of rifts, vents and fault -lines as well as numerous cinder buttes. To the West lies the Cascade Mountain Range, including Mt. Bachelor which is a rather recent volcano; geologically lacking glacial relief, the mountain shows a typical outline for a strato-volcano. To the immediate altered by these forms the far we: of the proximity high lava plains above sea level. West lies the Deschutes River, which has been flows of lava. The flood plane of the Deschutes stern edge of the Community of Sunriver. Because to the Newberry Volcano, Sunriver is part of the of Oregon and has a mean elevation of 4,250 feet The Sunriver site has been most important in man's history. The large post Mazama lava flows of Aa and Pahoehoe types caused the migration of large mammals to be diverted south into the area of the present Sunriver. Predators, including man, gathered here in the fall and spring to hunt these animals. The nature of the pumice soil is such that normal artifacts of man (bones, baskets, etc.) are poorly preserved, but sites have been found as close as the edge of the Lava Butte Flow. The climate of the Sunriver area is semi -arid (15-20 inches of precipitation per year) due to the rain -shadow effect of the Cascades. The relatively high elevation causes wide daily and seasonal temperature variations. The flora is typical of this dry condition; the Ponderosa Climax Forest dominates. The extensive logging of the area in the early 1920's led to a preponderance of Lodge Pole Pine (Pinus Contorta), with reestablished Ponderosa Pine (Pinus Ponderosa) slowly coming back. Because of the Deschutes River and its extensive wetlands within the flood plane , many bird species exist. The Osprey, Redtail Hawk and Canada Goose are common near the river. In the wooded portion of Sunriver, Stellar Jays, and Clark's Nutcracker are dominant and common through out the year. Smaller mammals are very evident; these include the Yellow Pine Chipmunk, the Golden Mantle Ground Squirrel and the Western Gray Squirrel. Mule deer are common for most of the year, leaving only for the Eastern High Desert in times of snowfall. Rocky Mountain Elk have been common in Sunriver during the spring and fall, but building has caused their numbers to dwindle of late. Within the 3,300 acre that is the planned community of Sunriver, there are approximately 900 acres of Common Land and Parks. This Is in addition to the two 18 hole golf courses and their attendant waterways that draw much fauna to their ample grass and lush vegetation. Sunriver EFS April 17, 1993 Page 28 Q128 -1Q18 Finally, it must be noted that the community of Sunriver has a Nature Center with resident naturalists. The Center and it's staff have greatly enhanced the area by educating the public and by carrying out numerous environmental projects. LAND USE The area being proposed for incorporation as the City of Sunriver is 4378 acres. A major portion of this proposal (3278 acres), is described in the "Consolidated Plan of Sunriver" dated January 1, 1986. In addition, Business Park I, II and III, covering 90 acres just South of Century Drive, is included. The proposed City also contains an area of 606 acres identified as Two Rivers, which is just now beginning development into an 18 hole golf course and 15 home sites. Finally, the proposal includes a 404 acre tract of undeveloped land, zoned F2, which is located East of the newly planned golf course. The property covered in the "Consolidated Plan of Sunriver" is a planned community comprised of interrelated villages containing homes, condominiums, recreational and shopping facilities and a major resort complex. There are 3229 single family residential lots of which 2251 are developed with homes, and 866 condominium sites, of which 842 are developed, totaling 4095 residential sites. There are more than 60 retail shops, eateries, and professional services located in the Sunriver Mall. Sunriver Lodge and Resort has 211 overnight accommodations as well as a wide variety of attractions for the day visitor. Business Park I, II and III are located just adjacent to South Century Drive. It consists of approximately 55 businesses providing services ranging from auto repair and building materials to restaurants, real estate and medical care. Also located within this area is a 56 unit apartment complex. The now -developing area known as Two Rivers will initially contain 15 single family building sites and an 18 hole golf course. The developer will probably continue to invest in this section as economics suggest. The three parcels of undeveloped land to the East of Two Rivers contain 404 acres. We see this area possibly being planned as lower cost residential with strong emphasis on a park -like atmosphere. Two schools are located within the proposed City boundaries. Sunriver Preparatory School, located near the Cottonwood Road entrance to Sunriver, offers a quality education for Grades 1 - 12. The Three Rivers School, located near the Business Park, serves kindergarten through grade 5 students. Sunriver EFS April 17, 1993 Page 29 SOCIO-RCONOMIC FACTORS 0128-1079 The assessed value of the area proposed as the City'of Sunriver is currently $654,048,560. The four components of this area are: TRACT A. Sunriver B. Business Park C. Two Rivers D. Undeveloped tract TOTALS AREA (Acres) ASSESSED VALUE ($) 3278 647,112,435 90 6,369,705 606 83,795 404 482,625 4378 acres $654,048,560 Growth in assessed value during the past five years has been propelled by the general increase in property values, the addition of improvements, and the construction of homes, businesses and facilities. In the area covered by the Consolidated Plan of Sunriver alone, assessed valuation has grown from $312M in August 1989 to the current value of $647M. A similar growth pattern was experienced by the Business Park, which was valued at $4.1M in August of 1990 and is currently valued at $6.4M. The number of new home permits issued in Sunriver decreased from the peak of 206 in 1990, to 129 in 1991, and to 136 in 1992. This slower pace should continue, as the community is expected to approach 90% build out by the mid -90's. The first homes were built in Sunriver in 1969 and 1970. Construction has continued in the intervening years at a regular pace, with the result that no homes are over 22 years old and the average age is less than ten years. Median homevalues have been rising due to inflation and to an.increase in the size and quality of new construction. Permanent population trends are difficult to obtain, as Sunriver has a large second home population. For some, their Sunriver residence is truly a second home where owners divide the year between it and a home in a milder climate. For others, it is a vacation home. Many plan to utilize this as their retirement location. Roughly 1500 owners rent their homes or condos in the short term rental market for tax or income purposes. Voter registration has grown from 911 in August 1989 to 1221 in 1992. Among registered voters, the household size is estimated to be two and a small fraction. The average age is apparently in the middle fifties. Education level is well above average, with a large number of advanced degrees and a very high proportion of college graduates. Fifteen years of formal education would be a conservative estimate. Because of this background, the Sunriver precinct has supported, by large majorities, efforts to increase financial resources for schools, county tax base, and support facilities. Sunriver EFS April 17, 1993 Page 30 A. Transportation: Sunriver has 80 miles of roads, which are maintained by the Sunriver Owners Association. Main arteries are macadam, as are some roads in low-lying areas; others are chip sealed. The Business Park Owners are responsible for road maintenance'in that area. The Sunriver Lodge and Resort provides a bell service for guests; other than this, there is no public transportation in Sunriver. Sunriver Resort also maintains an airport within the community, with a 5,500 foot paved runway, lighting, terminal facilities, fueling, airplane hangers and parking. B. Communications: Telephone service is by U.S. West, which has provided adequate capacity to accommodate the expanding community. C. Water Supply: Potable water is provided to all units by the Sunriver Utility Company, a wholly owned subsidiary of Lowe Enterprises. Supply is from three deep wells on the property, pumped to storage tanks on the higher land just East of the Burlington Northern Railroad line. Adequate flow and storage exist to meet fire fighting and build out requirements for the present area of Sunriver, plus the Business Park and Two Rivers. Adjustments must be made for any development in the 404 acre parcel. Golf course irrigation is handled by systems separate from the community water supply. D. Sewage Collection and Disposal: Sunriver Utility Company provides a central collection, treatment and disposal system at an on-site treatment plant. Waste water is pumped to several golf course ponds and solids are utilized on pasture lands. The physical plant has been designed with sufficient capacity to meet build -out requirements and loads for the current Sunriver, the Business Park and Two Rivers. E. Electric Power: Midstate Electric Cooperative provides electric service through sub -stations at the North and South boundaries of the present community. F. Natural Gas: Gas service is provided to Sunriver by Cascade Natural Gas Company. G. Cable Television Service: Chambers Cable provides the Sunriver community with cable TV and offers a variety of programming choices. H. Solid Waste Disposal: Sun Country Disposal, one of four franchised collection companies authorized by the County, provides pick-up service in Sunriver. This company operates on a seven year franchise agreement, automatically extended Sunriver EFS April 17, 1993 Page 31 0128-1081 by the County and such service would continue unless the future City Council should decide to make other arrangements. I. Public Safety: The Department of Public Safety, administered by the Sunriver Owners Association, consists of a Chief and nine Officers, who are deputized by the County Sheriff. The officers are supported by a secretary/dispatcher and by seasonal bike marshals. The department is charged with enforcement of the Association's Rules and Regulations. Twenty-four hour -a -day protection is offered, with after- hours dispatch provided through 9-1-1 in Bend. J. Fire and Emergency Medical: Sunriver Owners Association maintains a fire department with equipment ranging from brush rigs to pumpers. A Chief and five subordinates are salaried; 24 volunteers receive training and call -out pay. One central fire station is maintained. Current fire insurance rating is NB 5. The Association also owns a modern ambulance staffed by EMTs, many of whom are volunteers. Medical back-up is available from the High Desert Medical Clinic at the Sunriver Village Mall area. As with police, after-hours calls for fire and medical aid are handled through 9-1-1. K. Schools: Sunriver is within the Bend-LaPine School district, which provides education for grades K-5 at the Three Rivers School in the Sunriver Business Park. It is anticipated that the number of grades served will be increased. The School District furnishes bus service to Bend for children in higher grades. The private Sunriver Preparatory School, serving grades K through 12, is also located in Sunriver. L. Street Lighting: Sunriver Owners Association provides full lighting for the principal streets and minimal illumination for residential lanes. M. Mosquito Control: The Sunriver area is served by Three Rivers Vector Control, under contract with Sunriver Owners Association. A similar contract could be negotiated by the City. N. Library Services: Provided in Bend by the Deschutes County Library. The Sunriver Owners Association maintains a small lending library in its conference room. O. Parks: Much of Sunriver consists of dedicated "common" property, controlled by the Sunriver Owners Association, for enjoyment by all of the owners. Two areas are currently developed as parks: Mary McCallum Park on the banks of the Deschutes, restricted to owners and guests, and Ft. Rock Park in Mt. Village East. Future parks can be developed by the Association as need arises. Sunriver EFS April 17, 1993 Page 32 0128-1082 R. Special Service Districts: The Business Park, which is protected by the LaPine Rural Fire Protection District, is the only developed area of the proposed City that is within a special service district. Deschutes County retains primary responsibility for the Business Park. The closest governmental unit is the City of Bend, some 15 miles to the North. S. Storm Drainage: There has been no provision for storm drainage, since yearly precipitation is low (about 19"), mostly in the form of snow. Sunriver EFS April 17, 1993 Page 33 C. LAND USK LaQAL JUSTIFICATIONS 0128-1083 LAND CONSERVATION AND DEVELOPMENT COMMISSION GOAL ANALYSIS The plans for incorporation of the City of Sunriver have been prepared considering the first fourteen goals of the Land Conservation and Development Commission (LCDC). Goals fifteen through nineteen will not apply to Sunriver. GOAL #1. - Citizen Involvement: Sunriver has a long history of citizen involvement in governmental, cultural, social and recreational activities. During the ongoing process of developing this proposal, and over the coming months during which the proposal will be reviewed and evaluated by the County, the Sunriver Incorporation Committee has specific plans to maximize dissemination of all elements of the Economic Feasibility Study to Sunriver owners in the following manner: 1. Beginning October 1992, the "Incorporation News", a monthly newsletter covering various aspects of incorporation, has been circulated to over 700 households. 2. The April issue of the "Sunriver Scene", sent to 4,100 Sunriver Owners Association members/owners, contained a comprehensive article reporting the current status of the incorporation proposal and a timetable between now and the requested election in May, 1994. 3. Letters explaining the incorporation concept and copies of "Incorporation News" have been mailed to approximately 200 non-resident owners. 4. One or more non-resident owners are directing letters in support of incorporation to more than 100 other non-resi- dent owners. 5. The committee will continue to cooperate with local TV, radio and news media to assure widespread circulation of information both in the community and in the County. KTVZ, the "Bulletin", several radio stations and the "Sunriver Sun" will be regularly furnished with timely information regarding incorporation. Press releases will be issued when appropriate. 6. Informational meetings are scheduled this April and May to present the incorporation proposal to the following organizations: Sunriver Women's Club, Sunriver Chamber of Commerce, Business Park Association, Mall Merchants Association and Men's Luncheon Club. 7. Public forums, to which all members will be invited, will be held regularly between now and May, 1994. 8. SIC's Communications Committee will hold neighborhood coffees during the same period. 9. The SROA Board has declared that the "Sunriver Scene" will be made available as a forum for discussions of incorporation once the new proposal is completed and available for board review. Sunriver EFS April 17, 1993 Page 34 0128-1084 Due to financial constraints, most information about Incorporation will be circulated within the local community. However, the committee fully intends to avail itself of all media that enjoy wider readership, including non-resident Sunriver Owners, whenever possible. Following a successful election in May, 1994 subsequent citizen involvement in municipal affairs will be the responsibility of the City Council, its departments and various committees, to a degree sufficient to assure proper community involvement and input. The Sunriver community is known for a uniquely high standard of citizen involvement and there is no reason to believe that a similar level of involvement would not exist in support of a municipal government. Sunriver ownership is predominately non-resident. The interests of non-resident owners need to be represented in all phases of planning, including the development of the comprehensive plan. It is proposed that a representative of the SROA Board of Directors serve on all City planning boards and commissions. GOAL #2. - Land Use Planning: Land use planning will be a proper function of the newly elected City government. This proposal provides boundaries and background information to assist in the implementation of this goal. Sufficient funds have been budgeted to complete a comprehensive plan and implementing regulations, either by employing a City Planner or by contracting for necessary planning services. The cost of these services has been estimated using the experience of other jurisdictions, and by consultation with persons expert in the field. Much of the basic material for such a plan and accompanying regulations already exists in the governance of the current Sunriver community. There is no reason to expect that the City cannot, or will not, meet its responsibilities in this area. GOAL #3-4 - Agricultural Land, Forest Land: The proposed boundaries for the City of Sunriver include two undeveloped areas, both zoned F-2. The first of these is a 606 acre parcel bounded by the Deschutes River on the West, South Century Drive on the East, and other privately owned land to the South. The planned successor to Sunriver Properties Oregon Ltd., Lowe Enterprises, plans to develop this parcel into a golf course and home sites, a conditional use under the present F-2 zoning. Plans for development have been filed with the County and preliminary approval granted. Such development is compatible with the expansion of Sunriver. The transition of this parcel from Forest to Resort zoning will not involve removal of a valuable forest land resource from the forest land inventory since the area is relatively open and not characterized by large stands of harvestable timber. The second parcel of 404 acres, also zoned F-2, is bounded by South Century Drive and the 606 acre tract on the West, Sunriver Sunriver EFS April 17, 1993 Page 35 0128-1085 and the Sunriver Business Park on the North, Forest Service land and the Burlington Northern Railroad on the East, and other private lands on the South. This parcel can be logically changed from F-2 zoning to a variety of urban zones to provide for single and/or multiple family residential housing, including affordable housing, commercial and industrial uses, as the growth of Sunriver may require. Planning for development of this area will be the controlled by the City of Sunriver Planning Department, allowing for appropriate public input and attention to statewide land use goals, in particular Goals 8, 9, 10 and 14. The development of this tract will be addressed in greater detail during the formulation of a comprehensive plan. At the outset, it is quite possible that some or all of this land would retain a resource zoning, even if it is within the City limits. In fact some of it may remain resource zoned for all time.. When it becomes clear whether the predominant need is for urban or resource land, the City is empowered to advance one need at the cost of other needs or goals. It is clear that, under the existing laws and rules, the inclusion of this tract will permit the City to comply with Goals #3 and #4 and other appropriate goals as well. The establishment of an urban growth boundary is a matter which, under Oregon Statutes, is dealt with by the City over a period of years. However, it is envisioned that the presence of developed private land or forest service land to the West, North and East of the proposed City will require the Urban Growth Boundary to encompass areas to the South, such as the Vandevert Ranch and areas to the East of the Ranch extending to the railroad right-of-way. In any event, the object would be to maintain sensible cohesiveness for a stable community, and not seek needless or grandiose expansion which the City might find hard to defend. GOAL #5. - Open Spaces, Scenic and Historic Areas, Natural Resources: The existing Deschutes County Comprehensive Plan inventories and protects these resources. The Consolidated Plan of Sunriver also provides for protection of Goal #5 resources, and this protection would continue and be integrated into the new City's comprehensive plan. The additional areas proposed to be incorporated within the urban growth boundary include a planned golf course and as yet undeveloped naturalresourceland. These areas would provide an opportunity to enhance compliance with Goal #5 in the new City's comprehensive plan. GOALS #6 AND 7. - Air, Water and Land Resource Quality, Areas Subject to Natural Disasters and Hazards: The analysis and inventory required by these goals has already been conducted and is contained within Deschutes County's Comprehensive Plan. The implementation of appropriate zoning measures in furtherance of these goals could be accomplished using the County Comprehensive Plan as a general guide. Sunriver EFS April 24, 1993 Page 36 0128-1085 GOAL #8. - Recreational Needs: Existing recreational amenities subject to the SROA provide a multitude of recreational opportunities (Biking, hiking, tennis, swimming, picnicking, volleyball, x -country skiing, etc.). These are available to all owners, permanent residents and guests. In addition, the S rriver Nature Center is available to the general public. SL%nriver Lodge and Resort offers additional amenities including golf, tennis, swimming, riding, a marina, an airport, dining, etc., which are all open to the general public. It is understood that the development of Two Rivers will offer similar recreational opportunities to owners, residents and guests of that area. The City will be able to require that a portion of the 404 acre tract be dedicated for public park purposes. This will provide recreation facilities particularly for the residents of this area and the Business Park. Clearly, the City of Sunriver will have abundant recreational facilities for all. GOAL #9. - Economic Development: The City of Sunriver is planned primarily as a self-sufficient residential community, with adequate commercial and shopping areas, a healthy tourist and resort industry, and supporting light industrial services in the Sunriver Business Park. Heavy industry is neither anticipated nor desired. Deschutes County has provided ample areas for such activity in Bend, Redmond and LaPine. Underutilized human and natural resource capabilities are not a problem in this residential/recreation oriented community. In 25 years, 20 -acres of the 30.7 acre Village Mall commercial area have been developed. Available property, with services, exists for future expansion. Within the same time frame, 40 of 70 available acres in the Business Park (light industrial) have been developed. The 30 acres awaiting development appear ample for future expansion of Business Park activities. In our forest environment, it is anticipated that any light industry attracted to Sunriver will be non-polluting, small scale varieties compatible with existing businesses. Present and future commercial and light industrial development should complement, continue and reinforce County objectives set forth in the County's comprehensive plan. Necessary public services to these areas are now available, and can be expanded as required. It should be noted that the Three Rivers School (Bend-LaPine School District) occupies 20 acres immediately adjacent to the Business Park, further tending to define the activities which might be acceptable. Sunriver EFS April 17, 1993 Page 37 0128-1087 GOAL #10. - Housing: The Sunriver residential community consists of 3229 residential lots and 866 condominium sites, a total of 4095 potential units. As of November 1992, 77% of these residential lots and condo sites have been improved. All construction has been subject to the rules of the Sunriver Design Committee, a body formed under the Consolidated Plan of Sunriver to assure design compatibility in the community. The Design Committee will continue to function under the SROA, reviewing plan submittals for new construction and remodeling, granting preliminary and final approval, performing stake out inspections and generally monitoring compliance with regulations contained in the Sunriver Design Manual. Of the homes and condominiums constructed, 1204 (38%) are assessed below $100,000; 1141 (36%) between $100.000 and $150,000. The balance are assessed over $150,000. These values are generally consistent with rising residential prices in the Bend urban area. It should also be noted that some 1000 of these units make up a rental pool managed by property management firms with an additional estimated 500 units rented privately. In addition, the Business Park contains an apartment complex with 56 units and there are plans to build an additional 32 units at some time in the future. The completed units have rents ranging from $340 to $535 per month. This range of monthly rent is comparable to rental rates charged for 2 and 3 bedroom apartments offered in the Stoneybrook Apartments complex in Redmond, a project put together by the Central Oregon Regional Housing Authority, and intended to provide affordable housing for families of various sizes with gross family incomes between $13,680 and $22,620 per year. Rents in this complex range from $391 to $477 per month. Another Redmond project, known as Summit Park Apartments, set up under Section 8 and arranged by the same housing agency, also provides affordable housing for families of one to six members with gross family income from $18,240 to $30,160 per year. These projects are specifically cited as examples of the type of multi/unit low cost housing that the City of Sunriver anticipates could be arranged through the Central Oregon Regional Housing Authority, or a similar agency, and installed, as needs might dictate, in the 404 acre tract proposed for inclusion within the City boundaries South and West of the Sunriver Business Park. Ample space exists within this parcel to accommodate not only apartment complexes and lower cost single family housing, but also parks, commercial and retail support services as might be necessary and appropriate. The City will consider the appropriate zoning and housing mixture when developing the comprehensive plan, recognizing that the present Sunriver community is almost built -out, and that the Business Park should be reserved for future light industrial and commercial development. Hence it is evident that Sunriver and the Business Park already provide a wide range of residential and rental values, which can Sunriver EFS April 19, 1993 Page 38 0128-1088 be enhanced, as needs develop, by the installation of additional housing of an appropriate mix in the 404 acre tract described above. The City Council would address this goal when developing the required comprehensive plan. In summary, therefore, the existing inventories of homes, condos, and undeveloped lots, the availability of numerous rentals both within Sunriver and the Business Park, the potential for further development of the Business Park and the 404 acre tract, should assure the City's ability to comply with the objectives of Goal 10 in the near-term, intermediate and long term. GOAL #11. - Public Facilities and Services: The City of Sunriver will provide all necessary facilities and services in accordance with the "phasing -in" plan previously noted. The private Sunriver Utility Company now supplies water and sewer services to Sunriver proper and to the Business Park. These services will :e extended to Two Rivers. The Utility Company has indicated its intention to continue providing these services to Sunriver proper and to the Business Park. Telephone, gas, water, electric, sewer and waste disposal services will be furnished by current providers. According to Sunriver Utilities Company, it will be unable to extend sewer service to the 404 acre tract pr -posed for inclusion within the City boundaries and it is ui.�_ertain as to whether water service can be provided. City administrative offices, Police, Fire, and Public Works will initially be located in leased space, pending a decision by the City Council to build or purchase permanent facilities. Space rental costs listed in the proposed budget were developed from discussions with area property managers and through communication with the owner of the Sunriver Village Mall. GOAL #12. - Transportation: There is no public transportation in Sunriver, other than that now provided to guests of Sunriver Lodge. Any future demand for such services will be answered by the City Council. Most of the 80 miles of existing roads in Sui:river are privately owned by the SROA, with the exception of about three miles already dedicated to public use. The City will acquire the roadways, either by transfer from the SROA, or by condemnation. The proposed budgets include estimates of the funds needed for condemnation proceedings, which are based on suggestions made by authorities in the fields of municipal law and condemnation. Bike paths within private areas will remain private. Pathways in other areas will be maintained and policed by the City. At present, it is not proposed that the City acquire the airport, which is basically a transportation asset of Sunriver Lodge and Resort/Lowe Enterprises. Sunriver EFS April 17, 1993 Page 39 0128-1989 GOAL #13. - Energy Conservation: Goal #13 seeks to achieve maximum efficiency and energy utilization, primarily through zoning controls on location, orientation and density of development. The goal is now addressed in the Deschutes County Comprehensive Plan. The implementation of appropriate zoning measures in furtherance of these goals will be accomplished using the County's Comprehensive Plan as a guide. GOAL #14. - Urbanization: Sunriver is considered an active and functioning urban area by LCDC, Deschutes County, and interested environmental organizations. Additional areas are suggested for inclusion so as to present a logical and homogeneous City, bounded on the West by the Deschutes River, on the North by Forest Service lands, on the East by the Burlington Northern Railroad and Forest Service lands, and adequate area for expansion on the South. The City will be able to properly administer and service this clearly defined area. Discussions between the City Council and Deschutes County will lead to a decision on an Urban Growth Boundary, as part of the formulation and acknowledgement of the City's comprehensive plan. The Urban Growth Boundary will depend upon exceptions to be taken to the current Forest Zoning. As previously noted, the Urban Growth Boundary might logically encompass contiguous areas to the South through the Vandevert Ranch and areas to the East of the Ranch extending to the railroad right-of-way and US Highway 97, mostly now F-2 zoning, with a scattering of private homes. The exact Urban Growth Boundary will be determined after discussions with Deschutes County and the LCDC. The City will be able to influence the development of this area and the future extension of public services as required. The thrust of development should be orderly and efficient utilization of available land within City boundaries before expansion to the South occurs. Comments noted previously in addressing Goals 8, 9, 10 and 11 are pertinent to future consideration of Goal 14. Sunriver EFS April 17, 1993 Page 40 01281090 The plans for incorporation of the City of Sunriver are being made to recognize and conform to the "Planned Community Development Ordinance of Deschutes County", the Sunriver Master Plan and the Consolidated Plan of Sunriver wherever applicable. BUILT/OMITTED/NEEDS EXCEPTIONS We know of no way in which the incorporation of Sunriver will create exceptions to any existing plans for this area of Deschutes County. IMPACT ON FINANCIAL INTEGRITY OF OTHER JURISDICTIONS The incorporation of Sunriver will have an effect on other jurisdictions. The County, in the year 1992, collected over $1,060,000 in room taxes from rental agents in Sunriver. The City would impose a similar, substitute room tax on all Sunriver rentals. The loss of these funds would have an impact on County finances. At the same time the County Sheriff would no longer have to provide coverage of the Business Park or other acreage to be included in the City. Other County responsibilities (Communi- ty Development, etc.) will also be reduced. Deschutes County historically has allocated to cities 15% of funds received from the Forest Service for road maintenance within the cities. For Sunriver, the allotment would be based on the number of miles of streets within the City. Streets counted in the formula are those dedicated to the public. This would amount to approximately 80 miles, which is about 1.5% of the total City roads in Deschutes County. However, the County has discontinued distribution of Forest Service Funds to cities in Deschutes County. Hence, our initial budget estimates zero revenue from this source. The Business Park and Two Rivers are currently protected by the LaPine Rural Fire Protection District. The undeveloped tract of 404 acres is served by both the U.S. Forest Service and the LaPine Rural Fire Protection District. Assessed value of this area is $6,936,000. At the current tax rate of $1.9562 per $1000 this results in $13,600 for the District. The District would no longer receive this revenue if the City of Sunriver arranged to service these areas with the Sunriver Fire Department. Sunriver EFS April 17, 1993 Page 41