2002-1283-Minutes for Meeting October 25,2002 Recorded 10/31/2002COUNTY OFFICIAL
MARY HSUESPENHOLLOW, COUNTYRCLERKS Vd 2002n1213
COMMISSIONERS' JOURNAL 10/31/2001 03:45:57 PM
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DESCHUTES COUNTY CLERK
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Deschutes County Board of Commissioners
1130 NW Harriman St., Bend, OR 97701-1947
(541) 388-6570 - Fax (541) 388-4752 - www.deschutes.org
MINUTES OF ADMINISTRATIVE LIAISON
DESCHUTES COUNTY BOARD OF COMMISSIONERS
FRIDAY, OCTOBER 25, 2002
Present were Commissioners Tom De Wolf, Dennis R. Luke and Michael M. Daly.
Also present was Mike Maier, County Administrator; Tammy Credicott, Property
Management; Jeanine Faria and Marty Wynne, Finance; Rick Isham, Legal
Counsel; Bill Smith and Mary Campbell, William Smith Co.; and David Givans,
Commissioners' Office.
Commissioner Tom DeWolf opened the meeting at 10:05 a.m.
This meeting was a continuation of a meeting held on Thursday, October 24.
Mike Daly brought up the question of Bill Smith's licensing through the Oregon
Contractors' Board. Bill Smith replied that he is part of a general partnership under
Arlen Keeton's license (Keeton King Co.); the partnership is known as Keeton
King and Bill Smith LLC, with a separate licensing agreement.
Commissioner Luke said that Bill Smith is not a licensed contractor, but has a real
estate license and builds his own buildings. Mr. Smith said both parties in the
partnership are legally liable. Mary Campbell stated that Mr. Smith's son, Matt
Smith, who is also a corporate officer of William Smith Co., is in the process of
obtaining his contractor's license, and will likely complete the required work on it
within the next two weeks.
Commissioner Luke asked how, in this case, the demolition of the houses on
Lafayette would be handled; Mr. Smith said his company could contract with
Arlen direct for that part of the project.
Rick Isham said there is no agreement between the County and Arlen Keeton, and
no process has been put in place in this regard. He said it's better to speed up Matt
Smith's taking the contractor's exam and obtaining his CCB license.
Minutes of Administrative Liaison Friday, October 25, 2002
Page 1 of 5 Pages
It was Mr. Isham's recommendation to not break up the project in this manner. He
added that this situation is resolvable, and the contract can be changed as
necessary. He will finish working on the documents, and will leave a blank for the
forthcoming CCB number.
Mr. Smith said he feels the County and State are getting a great deal on this
project, as in his opinion the property will be worth an additional $1 million when
it has been completed.
Mike Maier asked the Commissioners if they are okay with this scenario.
Commissioners DeWolf and Daly indicated they didn't see any problems with it.
Mike Maier then said that a decision needs to be made regarding the future
warehouse/archives/building services/Information Technologies facility. Staff
recommends going with site #2, as it is the best location and is the least
complicated in regard to purchasing property, zoning, obtaining permits and
building the facility.
Mary Campbell indicated that the State has been advised that signed copies of the
contracts need to be made available by Tuesday in order to avoid a possible
construction delay of sixty days. She will provide updated maps and information
at the next meeting with the County on Thursday. She added that the tenants
would be out of one of the properties by November 4.
Commissioner DeWolf posed the idea of building the third floor now, as it would
cost about 40% less. Qualifying tenants could be the City, the school district, the
State, other County departments, taxing districts, and so on. However, the Federal
government does not qualify to use the space. It was pointed out that even if it
were just shelled in, the County would be money ahead by building it now instead
of later.
Bill Smith estimated a rough cost of about $2 million to put in the third floor now,
which includes the shell, wiring, plumbing, permits and insulation so that he would
not need to be heated. Marty Wynne said that the annual debt services would run
about $150,000 per year.
At this time, Tammy Credicott presented a spreadsheet showing County -owned
properties, their approximate market values, what properties have a pending sale,
what properties have sold, whether they were sold on contract or for cash, and so
on.
Minutes of Administrative Liaison Friday, October 25, 2002
Page 2 of 5 Pages
A discussion followed that addressed the rate of appreciation, what properties
should be sold at a given point, the expected market time, the benefits of selling
with terms rather than cash, etc. Ms. Credicott explained that most of the
properties are marketable now; however, a few have zoning issues or could be
much more valuable if the County was able to rezone or subdivide them. In any
case, she feels the numbers on the spreadsheet are conservative.
Mike Maier explained that as these properties sell, the four cents would be freed
up. Commissioner DeWolf stated that this was the original purpose of setting
aside those funds. Commissioner Luke said that the Board must justify using this
money, as some of it may be needed to fill future budget gaps. He said he couldn't
vote to acquire either site for the warehouse, to purchase the Elliott property (near
the Juvenile Justice center), or to put in a third floor.
Commissioner DeWolf said that he would agree, except when considering today's
dollars, and allowing for the possibility that all departments lose money, that this
$400,000 won't buy much. This money would only buy a few positions. In his
opinion, it is a better long-term plan for the citizens of the County to buy property
that is useful to the County and focus on a ten-year plan. A small amount of
money could buy a lot of value, and $400,000 isn't enough to plug the holes in the
budget if there are funding shortfalls.
Commissioner Luke stated that the Board must also take into account the PERS
deficit and health care costs. If growth slows, it will be a struggle in the short
term.
Mike Maier said that there are several considerations. First, according to staff the
preferred site for the warehouse is site #2, and he recommends this property be
acquired. The building process would go smoother and it could be used
immediately. If the warehouse is built in the corner of the building project
property, it ties up that location. It is also marginally large enough for the
warehouse building. If the third floor is added and additional parking or a parking
structure is necessary, the new warehouse building would be in the way. It would
cost much more to have to tear down a specialized building such as that one and
rebuild it in another location.
He recommended that the Elliott property located adjacent to the Juvenile Justice
Center also be purchased, as it will keep appreciating in value and, if the County
gets into a financial bind, it could be sold at a profit.
Minutes of Administrative Liaison Friday, October 25, 2002
Page 3 of 5 Pages
He also explained that the Board must address the virtual courtroom project as
soon as possible.
Commissioner DeWolf said that the County needs to expand, and all of these
changes are logical. In essence, the County would be trading properties that are of
no use to the County for those that are advantageous for the County's purposes,
both short term and long term.
Commissioner Luke asked David Givans for his opinion. Mr. Givans replied that
these properties could very well appreciate greater than anticipated, as prior
properties and projects have.
Marty Wynne said that the third floor could be a political issue. Commissioner
DeWolf stated that he would back off on putting in the third floor, but indicated
that he strongly advocates site #2 for the warehouse, and purchasing the Elliott
property, which will gain in value. It has already greatly increased in value since
the County declined to purchase it a few years back. It is also the only available
bare land in that area, and the expansion of the jail and associated services is
inevitable.
Mike Maier stated that these plans should be prioritized on paper. His
recommendations are:
1. Site #2 for the warehouse facility
2. $400,000 for the Courts - virtual courtroom upgrade
3. Purchase of Elliott property
4. Building of the third floor - at least the shell
Commissioner Luke said that the third floor is a problem for him, especially is it is
left empty, even though it might make some sense in planning for the long-term
needs of the County.
He asked that new numbers be detailed that show the basics, then revised adding
the court upgrades for video conferencing, and then site #2. He added that the
County is conservative, and must show solid reasoning and numbers.
Mike Maier said the Board needs to make a decision no later than the first week of
November, as figures must be developed for the bond. He added that they should
address the short-term money concerns of Commissioner Luke as soon as possible.
Minutes of Administrative Liaison Friday, October 25, 2002
Page 4 of 5 Pages
It was decided that the group would meet again on Friday, November 1, at 9:00
a.m. to over the project numbers and to make a decision on what direction to take
regarding the various recommendations and alternatives that have been discussed.
Being no further items brought before the group, the meeting adjourned at 11:15
a.m.
DATED this 28th Day of October 2002 for the Deschutes County Board of
Commissioners.
ATTEST:
Recording Secretary
��W' '1&
Michael M. Daly, Co ssioner
Minutes of Administrative Liaison Friday, October 25, 2002
Page 5 of 5 Pages