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2000-783-Minutes for Meeting July 05,2000 Recorded 7/12/2000VOL: CJ2000 PAGE: 783 RECORDED DOCUMENT STATE OF OREGON COUNTY OF DESCHUTES *CJ2000-783 * Vol -Page Printed: 07/13/2000 15:38:09 DO NOT REMOVE THIS CERTIFICATE (This certificate constitutes a part of the original instrument in accordance with ORS 205.180(2). Removal of this certificate may invalidate this certificate and affect the admissibility of the original instrument into evidence in any legal proceeding.) I hereby certify that the attached instrument was received and duly recorded in Deschutes County records. DATE AND TIME: DOCUMENT TYPE: Jul. 12, 2000; 1:01 p.m. Regular Meeting (CJ) NUMBER OF PAGES: 11 ,V� 0'.., 0,-� MARY SUE PENHOLLOW DESCHUTES COUNTY CLERK KEY PJC D Ju[. 000 TES V1111V Nr 1Board of Commissioners a_ N.W. Harriman St., Bend, Oregon 97701-1947 COUNTY CLLJ�K (541) 3BB-6570 • Fax (541) 3BB-4752 www.co.deschutes.orus MINUTES OF MEETING Linda L. Swearingen Dennis R. Luke Tom DeWolf DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, JULY 59 2000 1130 NW Harriman Street, Bend, Oregon Administration Building Chair Linda Swearingen opened the meeting at 10:00 a.m. Commissioners present were Linda Swearingen, Tom DeWolf and Dennis Luke. Also present were Roger Kryzanek, Mental Health Department; Scott Johnson, Commission on Children & Families; George Read, Tracy White, Kevin Harrison and Paul Blikstad, Community Development; Greg Brown and Sue Brewster, Sheriffs Office; and Dick Ridenour, Risk Management. Also in attendance were Bruce White and Mark Amberg, Legal Counsel; Timm Schimke, Solid Waste Department; and Jim Bonnarens, Property Management; members of the media; and numerous citizens. 1. Citizen Input There was none offered. 2. Before the Board was a Decision on Appeal No. A-008 of Hearings Officer's Denial of Application No. CU -00-3, for a Conditional Use Permit for a Non -Farm Dwelling (Applicant: Sheehan, Dayton Road) Commissioner Tom DeWolf stated that he had visited the subject property, and offered his comments in writing (Exhibit A, attached). He then moved to overturn the Hearings Officer's decision. Commissioner Dennis Luke indicated agreement with DeWolfs statements, and moved to second the motion. Excerpt of Minutes of Board Meeting Page 1 of 7 Pages Wednesday, July 5, 2000 Quality Services Performed with Pride VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes aye. 3. Before the Board was Consideration of a Grant Agreement with the Deschutes Children's Foundation for the Every Kid Scholarship Fund. Scott Johnson of the Commission on Children & Families stated that the Commission Board has approved the allocation of $42,300 to the Deschutes Children's Foundation for the Every Kid Fund to provide scholarships to at -risk youth for positive youth development activities. He further explained that the funding is through the Juvenile Crime Prevention Plan, and the contract period is July 1, 2000 through June 30, 2001. He requested Board of Commissioners acceptance of the grant agreement. LUKE: I move approval. DEWOLF: Second. VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes aye. 4. Before the Board was Consideration of Signature of a Grant Agreement with the Northwest Health Foundation to Initiate Primary Health Care Services in Redmond for Low -Income Residents. LUKE: I move approval. SWEARINGEN: Second. VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes aye. 5. Before the Board was Consideration of Signature of a Grant Agreement with Another Road Outpatient Adolescent Alcohol and Drug Treatment Services. Roger Kryzanek, Mental Health Department, explained that this is a continuation of an existing agreement, which is targeted primarily toward Redmond youth. Excerpt of Minutes of Board Meeting Page 2 of 7 Pages Wednesday, July 5, 2000 LUKE: I move approval. SWEARINGEN: Second. VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes aye. 6. Before the Board was Consideration of Signature of a Personal Services Contract with Harrang, Long, Garry and Rudnick, P.C., for the Performance of Legal Services. Commissioner Luke stated that he sat on the selection committee, and that this firm was clearly the best qualified for this situation. He questioned the fact that the draft contract did not give totals for compensation amounts. Mark Amberg, Legal Counsel, said that the action before the Board is solely the approval of the firm at this time, and that the details regarding compensation are being worked out. LUKE: I move approval, subject to review of the final contract. SWEARINGEN: I second. VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes aye. 7. Before the Board was Consideration of Signature of Order No. 2000-014, Authorizing the Refund of Taxes to Certain Taxpayers in the Amount of $2,048.74. Chair Linda Swearingen explained that these refunds were being made to taxpayers who had experienced losses due to "acts of God", often loss of property due to fire. LUKE: I move approval. DEWOLF: I second. VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes aye. Excerpt of Minutes of Board Meeting Page 3 of 7 Pages Wednesday, July 5, 2000 8. Before the Board was Consideration of Signature of a Letter Appointing Ron Meckler to the Project Impact Steering Committee. LUKE: I move approval. DEWOLF: I second. VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes aye. 9. Before the Board was Consideration of Chair Signature of an Oregon Liquor Control Commission Application for El Pescador Restaurant in Sunriver. LUKE: I move approval. DEWOLF: I second. VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes aye. CONVENE AS THE GOVERNING BODY OF THE 9-1-1 COUNTY SERVICE DISTRICT 10. Before the Board was Approval of Weekly Accounts Payable Vouchers for the 9-1-1 County Service District in the Amount of $984.40. LUKE: I move approval, subject to review. DEWOLF: I second. VOTE: LUKE: Aye. DEWOLF: Yep. SWEARINGEN: Chair votes aye. CONVENE AS THE GOVERNING BODY OF THE EXTENSION/4-11 COUNTY SERVICE DISTRICT 11. Before the Board was Approval of Weekly Accounts Payable Vouchers for the Extension/4-H County Service District in the Amount of $6,900.01. Excerpt of Minutes of Board Meeting Page 4 of 7 Pages Wednesday, July 5, 2000 LUKE: Move approval, subject to review. DEWOLF: I second. VOTE: LUKE: Aye. DEWOLF: Yes. S WEARINGEN: Chair votes aye. RECONVENE AS THE DESCHUTES COUNTY BOARD OF COMMISSIONERS 12. Before the Board was Approval of Weekly Accounts Payable Vouchers in the Amount of $796,627.71. LUKE: Move approval, subject to review. DEWOLF: I second. VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes aye. ADDITIONS TO THE AGENDA a) Before the Board was a Discussion Regarding EBAC (Employee Benefits Advisory Committee) Recommendations. Commissioner DeWolf indicated his desire to approve six of the seven changes recommended by the Committee. (See Exhibit B, attached.) He stated that he was not prepared to accept Item #7, which has to do with a plan to budget more than 3% for anticipated increases next year. He also wanted to state for the record that he is placing a great deal of faith in the decisions of the Committee in this regard, and expects them to stand behind their decisions; that they will get all the credit if it works out well, and will be responsible if it doesn't. Commissioner Luke expressed that he shares the same concerns as Commissioner DeWolf. He further explained that he is not comfortable with the choice of agent of record, and is concerned whether they can perform all that has been promised. He said that he is comfortable with some of the items recommended by the Committee, but is concerned that the chosen agent of record may not actually provide all that has been promised. Excerpt of Minutes of Board Meeting Page 5 of 7 Pages Wednesday, July 5, 2000 Chair Swearingen stated that she believes the Committee has done its homework, and that the agent of record will do what is promised. She explained they are local, and have provided good customer service in the past. She said additional meetings may be required during the year, and adjustments made as needed. DEWOLF: I move to adopt EBAC's recommendations #1 through #6. SWEARINGEN: I second. VOTE: LUKE: No. DEWOLF: Yes. S WEARINGEN: Chair votes yes. b) Before the Board was a Public Hearing on Order No. 2000-078, Approving the Formation of the Deschutes County Law Enforcement District, and Ordering that a Final Hearing Be Held on August 23, 2000. Sue Brewster of the Sheriffs Office stated that this is an interim hearing, with a final public hearing to be held on August 23, 2000. Chair Linda Swearingen opened the public hearing. Being no testimony offered, Chair Swearingen closed the public hearing. c) Before the Board was a Discussion Regarding the Tentative Award of a Furniture Bid Contract for the New Health and Human Services Building. Dick Ridenour, Risk Management, explained that the bid process was opened two weeks ago, and that an award must be made within two weeks or all bids must be rejected. He recommended the second lowest bidder, Corporate Environments, be selected; that the lowest bidder presented items that were not equal in quality. He stated that this was a group decision, and the total amount of the bid was $530,000. He further said that some items might be eliminated. LUKE: I move to award the contract to Corporate Environments as the apparent lowest qualified bidder; with the requirement that they set up a sample work station to make sure it is appropriate. S WEARINGEN: I second. Excerpt of Minutes of Board Meeting Page 6 of 7 Pages Wednesday, July 5, 2000 VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes yes. d) Before the Board was Consideration of Signature of a Personal Services Contract Between Deschutes County and Karen Green, as Hearings Officer. Bruce White, Legal Counsel, stated that this is basically the same contract as the one in the previous year. LUKE: I move approval. SWEARINGEN: I second. VOTE: LUKE: Aye. DEWOLF: Yes. SWEARINGEN: Chair votes yes. Being no further discussion, Chair Linda Swearingen adjourned the meeting at 10:35 a.m. Dated this 5t" Day of July 2000 for the Deschutes County Commissioners. Board of Tom DeWolf, Commiss ner Excerpt of Minutes of Board Meeting Page 7 of 7 Pages Wednesday, July 5, 2000 File #CU003, Tia Lewis representing Tom & Mimi Sheehan Conclusions drawn by Deschutes County Commissioner Tom DeWolf June 30, 2000 The subject property can clearly be deemed a productive farm, as evidenced by the surrounding properties, which are productive farms. The applicants claimed that a neighbor some distance down the road had some sort of application pending, but did not provide any hard evidence to back up their claim, rendering the claim irrelevant. The applicants bought the property in 1994 and admitted knowing that it was EFU ground but claimed ignorance about how difficult it would be to site a home on the property. This lack of research on the part of the applicant is no reason to approve their appeal. Though there are a few rocks here and there, this parcel is no where near as rocky as either the Kiesow or Edwards properties that we previously considered. The subject property is not the same as the Kiesow application in my mind. I could not vote to approve the Kiesow application because the applicant was creating a situation in which a non-farm house would become essentially an island surrounded on all sides by productive farms, which has the potential for conflict and would not, in my opinion, maintain the stability of the area. In this case, we have a 10 -acre piece of property that has the potential of being a small, productive farm. All along Dayton Road are small, productive farms. Almost all of them have houses on them. The area on the Sheehan property where the house is proposed to be built is non -irrigated. It cannot be irrigated in the future without securing additional water rights. This does not seem likely to me. This area, less than two acres, being non- irrigated, I define as being non-productive. I define it as non-productive specifically because of the lack of water rights. Additionally, I do not believe this piece of property will become a productive farm unless a house is built on it so that the owners will be on-site to work the land. Deschutes County is very different from the Willamette Valley. In the Willamette Valley, many parcels are connected, leased and farmed as one very large productive farm. In Deschutes County, our land is different and less productive. We have far less of the Willamette Valley -type farming of connected parcels. It certainly does not appear that the small farms along Dayton Road follow this "Willamette Valley -like" pattern. Consequently, I conclude that the proposed dwelling will not compromise the stability of the surrounding area. I also conclude that the homesite on the property is unsuitable for farming due to the lack of water rights. I will support overturning the hearings officer's denial of this application. MEMORANDUM DATE: July 5, 2000 TO: Board of County Commissioners FROM: Empoyee Benefits Advisory Committee RE: EBAC Insurance Recommendations Summary ctS The Employee Benefits Advisory Committee (EBAC) forwards the following recommendations for your consideration. As you know, the County was first quoted an increase of 28.1 % to renew health insurance with Regence B1ueCross BlueShield of Oregon (RBCBSO). This is a $1,271,114 increase over the current premium of $4,516,475. If the EBAC recommendations are implemented the renewal for health insurance will meet, with some benefit reductions, the 3% increase budgeted by the County. (3% is an increase of $135,494.) To achieve this result the County will need to switch to a new agent of record, Pacific Benefit Resources. An additional $19,800 in savings can be realized if the County terminates its contract with UNUM and changes carriers for life insurance and long term disability. All changes should be made August 1, 2000 for the reasons stated below. It is our pleasure to serve the County in the role of advisors. We hope that you will recognize that the recommendations to go to a self-funded plan and change agents of record have been made after much careful deliberation. The EBAC is planning on staying on top of these changes, if the Board chooses to adopt our recommendations, and continue to carefully monitor the plan so we will be prepared to recommend any changes needed in the future. Recommended Changes 1. Change to a partially self-funded health insurance plan with $100,000 specific stop loss coverage. This includes medical, dental, vision and prescription coverage. By changing to a partially self-funded plan we hope to: ♦ Save on administrative costs. It is estimated that the admin. fees for a third party administrator (TPA) are about one-half the cost of an insurance company, approximately 10% of claims instead of 20%. ♦ Build up reserves. Any savings from claims being "less than expected" are ours. This savings may not be realized in all years, for example when claims are higher than expected in a given year, but we believe there will be savings over the course of many years. ♦ Increase our control of the plan. With a self-funded plan there is more flexibility to design a plan that meets our needs and changes can be made during the plan year if desired. EBAC Recommendations July 5, 2000 2. Switch to PBR as Agent of Record. PBR has experience with self-funded health insurance plans. There is an advantage to become part of the `consortium" with the Bend -La Pine School District and the City of Redmond, particularly for the stop loss quote that PBR was able to obtain. The County will retain its own plan, experience rating and trust fund arrangement. PBR was able to obtain a quote for administrative and stop loss fees that is within the 3% budgeted by the County with the least amount of changes to the plan. Although the Trust Fund arrangements for the city and school district have not been completed as efficiently as the parties would have liked, we will have the advantage of using their experience to our benefit so that our fund documents can be completed as quickly as possible. The overall experience of switching last year to a self-funded plan for both entities appears to be positive. An additional reason to change is that the new TPA, Administrators West, has indicated that they will administer COBRA benefits. This has been an additional task for the Personnel Department this past year because RBCBSO does not administer these benefits. 3. Change Benefits as Follows: Add $15 office co -pay fee ♦ Add $100 per day/$300 annual maximum hospital In -stay fee ♦ Increase monthly premium co -pay for each employee to $22 (from $20) Increase Rx to $10/20% whichever is greater (from $7/20%) • Consider a % component to mail -in Rx with 2 month maximum co -pay for 90 day supply per script (similar to former KMSB mail -in benefit) It is critical to be prudent with a self-funded plan and begin building up our reserves. It is also advisable to address plan utilization by employees. Since the initial 2-3 month lag in paying claims for incurred expenses is needed to pay for claims "down the road" (particularly if the County ever switches back to a fully paid plan) it is very important to build up additional reserves. The first two items above are changes in benefits that the EBAC feels are necessary so that the employees begin to "pay as they go." The $2 increase in monthly premium co -pay will help build up reserves. Because the premium is paid with `pre-tax' dollars, the net increase will be less than $2 per month. The increase in prescription to a minimum of $10 more fairly recognizes that Rx costs are increasing at a fast rate and constitute a noticeable portion of the overall plan costs. The consideration for a mail in percentage minimum -is necessary for fairness — apparently this was eliminated when we switched from KMSB to RBCBSO. We hope that no one foregoes receiving a service when necessary due to these increases. Employees who use (or whose dependents use) the plan more often will, however, pay more when compared to an employee who rarely uses the plan. 4. Change Carrier for LTD and Life Insurance. This recommendation only pertains to the quote from PBR. It is recommended that the $19,800 in savings from changing carriers be retained as reserves in an insurance trust fund. If reserves grow sufficiently it may be possible to consider using the savings from switching carriers for health related education for employees in the future. The EBAC will examine this idea more closely later in the next plan year after there is experience with the self-funded plan. EBAC Recommendations July 5, 2000 5. Implement Changes by August 1, 2000. In order to retain the current quote from the stop loss carrier and process the paperwork necessary so that a "seamless" change occurs to a self-funded plan the County must make a decision and move forward. 6. Invest Funds In an Interest Bearing Account. There will be a 2-3 month lag when not all the premiums paid by employees are needed to cover medical, dental, vision and prescription claims because of the time required to process claims for services incurred after August 1. The County will need to set up a Trust Fund for this money. The funds in this account should be invested in Tax Anticipation Notes (TANs) or some other safe investment vehicle that can provide interest. All interest that accrues needs to be retained in the Trust Fund as a means of increasing reserves. 7. Plan to Budget More Than 3% for Anticipated Increases Next Year. The health plan changes recommended by EBAC will be paid for by a combination of increased contributions from the County general fund and employees. A comparison with other organizations in Central Oregon indicates that we have an excellent plan with costs that are usually less than other jurisdictions. Employee benefits are an important component to overall compensation and should be retained at the highest level possible. The implementation of an employee premium co -pay two years ago was an initial effort at "cost-sharing." For the renewal on August 1, 2000, the EBAC is recommending that two new fees be added: office visit co -pays and hospital in -stay deductibles. Instead of using the savings from changing life insurance and LTD carriers ($19.8k) or the anticipated interest earnings ($40k) to balance the plan we are recommending modest increases in the cost of prescriptions and the monthly premium co -pay. This is expected to result in an additional out- of-pocket expense of approximately $54k and $49k respectively to our employees, an average of $125 annually per employee. One estimate we heard for next year is that the cost of health insurance may rise an additional 12-18%. If this occurs it would be prudent for the County to budget more than a 3% increase from the general fund. It will be too much to expect employees to make up a 9 to 15% shortfall. Once reserves are built up to a sufficient level, perhaps 3-5 years from now, it may be possible for some money from this fund to help balance cost increases. The EBAC will try to begin looking at anticipated cost increases early next year so we can inform the Commissioners early on in the budget process. EBAC Recommendations July 5, 2000