2001-33-Minutes for Meeting December 19,2000 Recorded 1/11/2001VOL: CJ2001 PAGE: 33
RECORDED DOCUMENT
STATE OF OREGON
COUNTY OF DESCHUTES
*CJ2001-33 * Vol -Page Printed: 01/16/2001 08:47:05
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:
Jan. 11, 2001; 4:34 p.m.
Regular Meeting (CJ)
NUMBER OF PAGES: 9
MARY SUE PENHOLLOW
DESCHUTES COUNTY CLERK
MICRO MEED
JAN 17 2001
KN HED
JA 2001
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Board of Commissioners
1130 N.W. Harriman St., Bend, Oregon 97701-1947
(541) 388-6570 • Fax (541) 388-4752
www.deschutes.org
Tom De Wolf
Dennis R. Luke
MINUTES OF MEETING Mike Daly
The Deschutes County Board of Commissioners
with Lindsay Stevens, Business Consultant
Assigned to Assist the Fair Association
Tuesday, December 19, 2000
Chair Linda Swearingen called the meeting of the Deschutes County Board of
Commissioners to order at 10:00 a.m.
Deschutes County Fair Board members present were David Bishop and Lee Smith.
Also present were Deschutes County Commissioners Linda Swearingen, Dennis
Luke and Tom DeWolf; Commissioner -elect Mike Daly; Mike Maier, County
Administrator; Rick Isham, Legal Counsel; Jeanine Faria, Finance Department;
Mike Schiel, Fair Association; Timm Schimke, Solid Waste Department; Lindsay
Stevens, Business Consultant; several representatives of the media; and several
citizens.
Commissioner DeWolf gave an overview of Lindsay Steven's qualifications,
including the fact he had personally utilized Lindsay's services previously on small
business matters. Commissioner DeWolf said the reason for the meeting today is
to give Mr. Stevens an idea of what all three groups are seeking, and to again offer
assistance to the Fair Association in putting together its operating plan and budget
for the 2001 Deschutes County Fair.
STEVENS:
Does the Fair Association want help?
MIKE SCHIEL:
The Fair Association was led to believe it would get County help.
Meeting of the Board of County Commissioners Page 1 of 9
With Lindsay Stevens, Business Consultant for the Fair Association Tuesday, December 19, 2000
Quality Services Performed with Pride
DENNIS LUKE:
Whatever help you need, we are offering.
TOM DEWOLF:
Lindsay Stevens and Central Oregon Community College are ideal community
partners. As a County, we're on two tracks here. One is the operational budget and
plan for the entire facility - that's not why we're here today. This is specifically for
the operation of the annual Fair with the DCFA as the agent to handle it.
The focus today with Lindsay is the annual Fair.
STEVENS:
We need to start with a commitment. What is the relationship between the Fair
Association and Fair Board?
LUKE:
The County appoints the Fair Board, which is the statutory authority to manage the
Fairgrounds. In the early 1900's, the Fair Association was established, and it has
been hard to make a distinction between the two for many years. The Fair Board
contracted out to the Fair Association to produce the Fair, and the Association
previously managed the old Fairgrounds facility, too.
The Attorney General found a problem with contracting with oneself - referring to
people who were members of both the Fair Association and the Fair Board. The
Fair Association would like to conduct the annual Fair, and they need a plan and a
budget for this.
STEVENS:
Just the Fair?
DEWOLF:
Yes. This would put into written form what the Fair Association does. There is
tax money involved in this now, with the County responsible to the taxpayers. Tax
money that was not previously involved now is.
MIKE MAIER:
Tax money has been involved since the bond measure passed.
SCHIEL:
Previously tax money was not involved, but funds were used to get it up and
running each year.
Meeting of the Board of County Commissioners Page 2 of 9
With Lindsay Stevens, Business Consultant for the Fair Association Tuesday, December 19, 2000
MAIER:
There was a small amount of pass-through public dollars used previously, from
racing, etc. And a small amount of money was used for garbage collection, legal
services, and so on.
LEE SMITH:
There will be tax money necessary from this fiscal year to set up the 2001 Fair.
LINDA SWEARINGEN:
There should be a one-time infusion of cash now, as the Fair should be able to
make more money later on.
LUKE:
This may have to carry over through a three to four year period.
SCHIEL:
The agreements say that profits from the Fair are to be paid to the County to cover
bills. The goal is for the Fair Association to be independent eventually.
MAIER:
Independent from what?
SCHIEL:
Cash from the County.
DEWOLF:
We created a fund specifically for the operation of the Fair.
S WEARINGEN:
The Association is still under the direction of the Fair Board. It's aligned as the
County, the Fair Board and the Fair Association.
MAIER:
We created three new funds - expo operations, capital improvements, and the Fair.
LUKE:
The Fair Association and Fair Board will be handled like any other department.
It's a special fund, and the money is tracked.
Meeting of the Board of County Commissioners
With Lindsay Stevens, Business Consultant for the Fair Association
Page 3 of 9
Tuesday, December 19, 2000
SCHIEL:
Regarding the notion of alignment and accounting responsibility, the Association is
very supportive.
(A general discussion the occurred regarding how the tracking is set up and
accomplished.)
S WEARINGEN:
When you do business for the Fair, bills and receipts will be run through the
County. When spending this money, a legal process must be followed which is
simplified and understandable.
SCHIEL:
We understood a process would be there.
SWEARINGEN:
We won't have to hire a Chief Financial Officer, as the checks and balances will be
much improved.
JEANINE FARIA:
Are there any other Fair Association expenses except the Fair?
SCHIEL:
There's the annual stockholders' meeting, scholarships and a few other things.
S WEARINGEN:
If they want to do these things outside of the Fair, they need to handle them
accordingly. Some funding might be necessary.
MAIER:
This would be similar to a foundation, separate from a non-profit.
DEWOLF:
Are there any other revenue sources for the Fair Association?
SCHIEL:
Traditionally, everything came from the Fair. This has been a difficult transition.
Maybe these other things should be detailed in the budget, since there is no other
source of revenue.
Meeting of the Board of County Commissioners Page 4 of 9
With Lindsay Stevens, Business Consultant for the Fair Association Tuesday, December 19, 2000
DEWOLF:
I feel everything should go through the budget, since there isn't another source of
revenue.
SCHIEL:
The Fair Association may want to look at items throughout the year that might be
profitable; it's kind of new turf for us.
DEWOLF:
For the next few years perhaps everything should go through the process, and be
separated out later when the debt is down.
SMITH:
4-H scheduling could be a valid expense that needs to be in the budget; but it needs
to be justified.
STEVENS:
It appears you want to set up accounting for the Fair, and it sounds like separate
accounts for other things. The budget needs to include all of these things.
Wei NO
We can't write a check without money being accounted for. All items should be in
the budget.
SCHIEL:
The agreements clearly speak to this. The Association met last night on this.
FARIA:
Will all economic items be run through the County at this point?
DEWOLF:
The public needs to know there is an accountable system, one that makes sense.
We won't try to change what the entity is.
SMITH:
We need to know if items make good business sense.
STEVENS:
Who decides this?
Meeting of the Board of County Commissioners Page 5 of 9
With Lindsay Stevens, Business Consultant for the Fair Association Tuesday, December 19, 2000
SMITH:
The Fair Association brings it to the Fair Board, but the Fair Board needs to go to
the County Commissioners.
SCHIEL:
I haven't seen the final numbers from last year's Fair; these numbers don't seem to
be readily available.
FARIA:
Once a year the Fair Association's accountant would come in and do this, but it
was done on a calendar year basis.
SCHIEL:
Calendar year makes sense to us for the Fair, but it does not match the County's
system.
FARIA:
Through December 31, 1999, Donaca did the accounting. From January to
October 2000, Moss Adams is doing this work. The Fair's actual information is
looked at two ways: the passage of time, and separated out by major activities.
This information should be available within the next week or so.
S WEARINGEN:
We want to make sure it fits with the December 26 date when the contracts are
due.
BISHOP:
The Fair Association needs to confirm the accuracy of the information shown on
its accounting since September 13, and needs to execute the agreements.
SCHIEL:
We are meeting today with Jeanine regarding the accounts payable list and the
financial activity.
STEVENS:
What are the expectations for the project? The outcome desired?
Meeting of the Board of County Commissioners Page 6 of 9
With Lindsay Stevens, Business Consultant for the Fair Association Tuesday, December 19, 2000
BISHOP:
The projects are a business plan for the Fair as an anchor event; and a business
plan, as part of the three-part agreement. We need to understand how the Fair
works and use this as a tool to operate the Fair. If there is a challenge, we need to
have documentation explaining the details. We also can use it as an exit interview
tool, for next year's planning purposes.
All encompassing is a long-term vision. There needs to be a mission statement and
a clear vision. We need to make sure there is a viable business plan in place to get
to that point.
STEVENS:
You need a business plan for the 2001 Fair; a template for planning future events;
and an evaluation strategic plan for the future.
SMITH:
We see a responsibility for this asset to operate well. The Fair should be an
integral part. We would like to see the Fair as other than a freestanding event.
DEWOLF:
This is the specific focus right now.
BISHOP:
We have asked the Board of Commissioners for help with a strategic plan, but we
need to deal with this situation immediately.
LUKE:
Some other counties that hold fairs have offered help, such as Lane County and
Jackson County. All of them are losing money, however,
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All Fairgrounds facilities are not like ours, though.
S WEARINGEN:
We should be able to come up with a viable plan.
DEWOLF:
Maybe some of the DCFA people should meet with Lindsay separately.
Meeting of the Board of County Commissioners Page 7 of 9
With Lindsay Stevens, Business Consultant for the Fair Association Tuesday, December 19, 2000
SCHIEL:
I'd like Lindsay to work with me and a few others to address the budget, put
together a work description and so on. It's kind of a work in progress, and a
moving target.
BISHOP:
We need to be absolutely confident that it will work. This is the only county fair in
the state of Oregon that has not been run through a county budget process. Just the
fact this will now happen will keep us all within the white lines. That's what got us
into trouble; the financial accounting has been non-existent. If we use the financial
process that's in place, it. will be very good for communications and for the
community.
We still feel the Fair Association is the best entity to put on the Fair. This will get
more exacting in the future. We need Lindsay to work with the Fair Association,
separate the needs and activities, then bring in the Fair Board for a preliminary draft.
DEWOLF:
The bottom line is to end up with a credible plan, with the three entities working
together.
STEVENS:
I can come up with a great plan, one that is reasonable and workable, but I can't
guarantee its execution and implementation.
SMITH:
I am very impressed with Dan Despotopulos and his event expertise. He is a good
resource.
MAIER:
And a very necessary one, too.
SCHIEL:
We didn't write down much in the past but are outlining this information now. We
will take past financial documents and put them in a new format.
LUKE:
The information on the old fairgrounds facility may not have much bearing on this
situation.
Meeting of the Board of County Commissioners Page 8 of 9
With Lindsay Stevens, Business Consultant for the Fair Association Tuesday, December 19, 2000
SCHIEL:
It's possible that the facility can stand on its own, as it is unique.
10H.411
The facility is a part of the Fair, when you consider the use of the buildings, power,
water, and so on. There has to be a way to separate out and track that kind of
usage in the future.
STEVENS:
I need to meet with Fair Association and the Fair Board to get down to business.
MIKE DALY:
I met with Matt Steele to try to bring down the cost of the parking lot. The
tentative plan is to have contractors look at the site and go out for bid. We're also
looking at possibly using red cinders instead of gravel.
DEWOLF:
The preliminary estimate was around $600,000, and it shocked a lot of us when it
came in later at $1.4 million. Some things could be eliminated or postponed, such
as landscaping required by the City of Redmond, oil mat road surfacing, clearing
and grubbing, etc. It's now estimated at just under $1 million.
(Arrangements were made for Mr. Stevens to meet with Fair Association and Fair
Board representatives after the meeting adjourned.)
Being no further input offered, Chair Linda Swearingen adjourned the meeting at
11:05 a.m.
Dated this 19th Day of December 2000 for the Deschutes County Board of
Commissioners.
ATTEST:
Tom D Wolf, Commiss' e
Meeting of the Board of County Commissioners
With Lindsay Stevens, Business Consultant for the Fair Association
Page 9 of 9
Tuesday, December 19, 2000