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2003-60-Minutes for Meeting January 22,2003 Recorded 1/29/2003DESCHUTES COUNTY OFFICIAL RECORDS CJ 1003'60 NANCY BLANKENSHIP, COUNTY CLERK COMMISSIONERS' JOURNAL 01/29/2003 11:49:20 AM 111111111111111111111111111111111111 2003000060 DESCHUTES COUNTY CLERK CERTIFICATE PAGE This page must be included if document is re-recorded. Do Not remove from original document. 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 MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, JANUARY 229 2003 Commissioners' Hearing Room - Administration Building 1130 NW Harriman St., Bend Present were Commissioners Dennis R. Luke and Michael M. Daly; Commissioner Tom DeWolf was out of town. Also present were Mike Maier, County Administrator; Susan Ross, Anna Johnson, David Givans and Bonnie Baker, Commissioners' Office; George Read, Catharine Tilton, Kevin Harrison and Chris Schmoyer, Community Development; Gary Smith and Greg Canfield, Mental Health Department; George Kolb and Gary Judd, Road Department; Rick Isham and Laurie Craghead, Legal Counsel; media representative Barney Lerten of bend.com; and eight other citizens. Chair Dennis Luke opened the meeting at 10:00 a.m. 1. Before the Board was Citizen Input. None was offered. 2. Before the Board was Consideration of Scheduling a Public Hearing to Address a Zone Change and Plan Amendment for File # PA-025/ZC-02-39 the Expansion and Improvement of the Oregon Water Wonderland Unit II Sewer District. Chris Schmoyer explained that a zone change is needed to modify 480 acres that is now zoned forest to rural residential RR -10, applying the limited use combining zone, that is limited to a utility facility, which in this case would improve and expand a sewer facility. Minutes of Board of Commissioners' Meeting w eanesuay, j aiivai y Page 1 of 13 Pages The only other option is to pump into the Sunriver sewer system, which may be cost prohibitive. There is a deadline for a grant for the Oregon Water Wonderland II system improvements. A hearing date of February 25 at 3 p.m. has been worked out. George Read added that there is no specific deadline, but that this should not be held up for more than a few months as they want to get started on building the sewer plant as soon as possible. Two hours should be sufficient time for the hearing, and a decision of the Board isn't expected at that time. The Planning Commission made a recommendation to extend the sewer, with conditions. Many of the issues have already been addressed. It is not economically feasible for the District to run the system to Sunriver, and no negotiations are taking place in that regard. 3. Before the Board was Consideration of Signature of an Intergovernmental Agreement between Deschutes County and the State of Oregon, Reducing Funding for Chemical Dependency Services by 25%. Greg Canfield gave a brief overview. This is a new contract with the State, which is driven by the changes implemented by the legislature. It details a reduction of 25% of services, including a reduction of 60% of caseload. The service is required; and for many of these services, they are subcontracted out to agencies. DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. Rick Isham stated that the large contract just approved makes a number of changes, including a reduction to payments to subcontractors, and who is eligible for what. As of March 1, the OHP standard benefit plan will not include chemical dependency treatment services, unless the State changes its plans. Basically, the subcontractors are the same except for CODA, which is going out of business. In its place, a subcontract will be put into place with Lane County, which is the closest location for methadone treatment services. There will be additional changes as of March 1. It is hard to stay ahead of the State at this point, and it is not entirely clear what the rates might be. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 2 of 13 Pages DALY: Move approval, subject to legal review, of subcontracts with Serenity Lane, Rimrock Trails, Pfeiffer, Best Care, and Lane County. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 4. Before the Board was Consideration of Signature of a Contract between Deschutes County and ABHA (Accountable Behavioral Health Alliance) for Quality Management Services to ABHA on Behalf of Deschutes County Mental Health, through June 30, 2003. Gary Smith said that this contract allows additional revenue into his department, which will cover 60% of one existing staff person's expenses. This existing employee is qualified, and this action cuts the overhead of the department. It will be $16,000 this year, and $39,000 next year. DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 5. Before the Board was Consideration of Signature of an Amendment to a Contract between Deschutes County and ABHA, for Client Services relating to the "Park Place" Program. Greg Canfield explained that this agreement amends an existing contract regarding crisis related services. The amendment stems from some of the same changes from the State OMAP. Some mental health services will be accepting co -pays for services; simultaneously the State has reduced habitation rates, receiving less money for people qualified for services in the County. This is supposed to be made up with co -pays. In addition, required HIPAA language is being incorporated. DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 3 of 13 Pages 6. Before the Board was Consideration of Signature of a Deed of Dedication and Acceptance for a Public Right -of -Way along Almeter Way, near Terrebonne. George Kolb said that this involves ten feet of right of way on the east side of Almeter Way. The people who own property to the east approached the department and asked if the County needed additional right of way for curbs, etc. By getting an additional ten feet, it allows for rock removal and opens up sight distance. DALY: Move signature of the deed of dedication. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. DALY: Move signature of the acceptance. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 7. Before the Board was Consideration of Signature and Acceptance of a Deed of Dedication in regard to a 60 -Foot Strip of Land pertaining to Hurtley Ranch Road Local Improvement District. Gary Judd stated that it was discovered that the road was deeded to the County twenty years ago but was never formally dedicated. No objections have been received. DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 8. Before the Board was Consideration of Signature of Resolution No. 2003- 006, Initiating Proceedings for the Hurtley Ranch Road Local Improvement District. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 4 of 13 Pages Gary Judd explained that the petition and filing fees have just been received. It has to be a public road for a LID to be formed. Ten out of thirteen signatures were received. Deschutes County was a non -signer, but still has to pay for its share of improvements. DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 9. Before the Board was Consideration of Signature of Order No. 2003-007 through 2003-011, Establishing a 30 -Mile Per Hour Speed Zone on Certain Roads with Bend -Cascade View Estates Tract 2. Gary Judd said that during the summer, some of the roads in their special road district were paved. They would now like to establish speed zones. The County Road Department will put up the signs, but the district will be responsible for the maintenance of speed zones. The studies justify 30 miles per hour. DALY: Move approval of Order No. 2003-007. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. DALY: Move approval of Order No. 2003-008. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. DALY: Move approval of Order No. 2003-009. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 5 of 13 Pages DALY: Move approval of Order No. 2003-010. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. DALY: Move approval of Order No. 2003-011. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 10. Before the Board was Consideration of Signature of the Acceptance of Deeds of Dedication for Property Acquired in the Construction of Johnson Market Road Bridge, for Public Right -of -Way Purposes. Gary Judd stated that they now have deeds of dedication from all the property owners; the Board needs to sign acceptances now. All that needs to be done now is paving. DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 11. Before the Board was Consideration of Signature of an Intergovernmental Agreement between Deschutes County and the City of Bend in regard to Building Inspection Services relating to the County/State Building to be Located at 1300 NW Wall Street. George Read asked that this be deferred until tomorrow's meeting of the Board with the City of Bend Council, as there has been some confusion at the City level. 12. Before the Board was Consideration of Signature of a Personal Services Contract between Deschutes County and Merrill O'Sullivan, LLP, for Hearings Officer Services (Tia Lewis). George Read asked for a postponement for a week, as the contract is undergoing legal review and possible changes. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 6 of 13 Pages 13. Before the Board was Consideration of Signature of a Personal Services Contract between Deschutes County and Karen Green (dba Green & Associates), for Hearings Officer Services. DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 14. Before the Board was Consideration of Signature of Letters Appointing the Following Individuals to the Transferable Development Rights Review Committee (regarding the La Pine New Neighborhood project): Through January 2005: Steve George (Oregon Department of Fish & Wildlife), Dean Cameron (Appraiser), Vic Russell (excavation contractor, La Pine), and Steve Wert (soil scientist); and Through January 2004: John Fettig (Realtor), Vicki Allen (La Pine Area Resident), Jon Jinnings (Oregon Department of Land Conservation and Development, Community Solutions Team), and John Forbes (La Pine Community Action Team). Catharine Tilton explained that the duties of the members are to monitor the program and make policy recommendations to the Board regarding implementation. All have agreed to serve, and the requirements for certain types of expertise have been addressed. DALY: Move approval of the two-year appointments. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. DALY: Move approval of the one-year appointments. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 15. Before the Board was Consideration of Scheduling a Public Hearing regarding Land Use File #TA -02-11, Requesting Changes in Zoning in the Wickiup Junction Commercial/Residential District (Applicant. Wanek). Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 7 of 13 Pages This was rescheduled to February 12 at 10:00 a.m., when all three Commissioners are available. 16. Before the Board was Consideration of Whether to Hear an Appeal of the Hearings Officer's Denial of a Conditional Use Permit for a Non -Farm Dwelling (File #CU -02-75; Appeal #A-03-1, Applicant. Kdamarek). Kevin Harrison said t hat a staff report has already been provided to the Board. The 150 -day time period expires on March 6. Commissioner Luke said he is not ready to decide, and suggested that it be moved to next Monday when Commissioner DeWolf has returned. 17. Before the Board was Consideration of Signature of Order No. 2003-006, Authorizing the Refund of Taxes in the Amount of $89.69. DALY: Move signature. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 18. Before the Board was Consideration of Signature of Resolution No. 2003- 008, Transferring Appropriations within the Health Benefits Trust Fund for Fiscal Year 2002-03, and Directing Entries. DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 19. Before the Board was Consideration of Signature of Order No. 2003-005, Transferring Cash among Various Funds, as Budgeted in the Deschutes County Budget for Fiscal Year 2002-03, and Directing Entries. DALY: Move signature. LUKE: Second. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 8 of 13 Pages VOTE: DALY: Yes. LUKE: Chair votes yes. 20. Before the Board was Consideration of Signature of a Letter Appointing of Ric Nowak (Sisters Area Chamber of Commerce Director) as an Alternate Member of the Central Oregon Community Investment Board. DALY: Move signature. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 21. Before the Board was Consideration of the Ratification of a Letter to the Federal Highway Administration, the Oregon Department of Transportation, and the U.S. Forest Service, Expressing the County's Concerns regarding Potential Delays to the Improvement of Road 45 (Sunriver to Mt. Bachelor). DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 22. Before the Board was Consideration of Signature of a Letter Reappointing Peter Cecil to the Board of the River Bend Estates Special Road District, through December 31, 2005. DALY: Move approval. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 23. Before the Board was Consideration of Signature of a Letter Reappointing John Leavitt to the Deschutes County Fair Board, through December 31, 2005. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 9 of 13 Pages DALY: Move signature. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 24. Before the Board was Consideration of Approval of the Appointment of Commissioner Dennis R. Luke to Represent Deschutes County on the Central Oregon Commission on Transportation, with Commissioner Michael M. Daly Serving as Alternate. DALY: Move signature. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. 25. Before the Board was Consideration of Signature of a Letter Appointing Frank Pennock to the Deschutes County Classification Committee (relating to the Oregon Forestland -Urban Interface Fire Protection Act of 1997). (Mr. Pennon would take the place of Bill Swartz, who was previously appointed by the Commissioners to this Committee, but who will instead be appointed by the U.S. Department of Forestry.) DALY: Move signature. LUKE: Second. VOTE: DALY: Yes. LUKE: Chair votes yes. CONVENED AS THE GOVERNING BODY OF THE SUNRIVER SERVICE DISTRICT 26. Before the Board was a Public Hearing (Continued from January 8), and Consideration of Signature of Resolution No. 2003-003, Adopting Public Contracting Rules; Granting Exceptions from Competitive Bidding for Certain Contracts; and Designating Certain Service Contracts as Personal Services Contracts, for the Sunriver Service District. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 10 of 13 Pages Sharon Smith asked that this matter be delayed until March 10 and 12. Laurie Craghead indicated that it would be appropriate to have a work session on March 10, followed by the continued public hearing on March 12. CONVENED AS THE GOVERNING BODY OF THE 9-1-1 COUNTY SERVICE DISTRICT 27. Before the Board was Consideration of Approval of Weekly Accounts Payable Vouchers for the 9-1-1 County Service District for two weeks, in the amount of $21,840.09. DALY: Move approval, subject to review. LUKE: Second. VOTE: DALY: Yes. DALY: Chair votes yes. CONVENED AS THE GOVERNING BODY OF THE EXTENSION/4-11 COUNTY SERVICE DISTRICT 28. Before the Board was Consideration of Approval of Weekly Accounts Payable Vouchers for the Extension/4-11 County Service District for two weeks, in the amount of $683.76; and the Construction Fund in the amount of $224.78. DALY: Move approval, subject to review. LUKE: Second. VOTE: DALY: Yes. DALY: Chair votes yes. RECONVENED AS THE DESCHUTES COUNTY BOARD OF COMMISSIONERS 29. Before the Board was Consideration of Approval of Weekly Accounts Payable Vouchers for Deschutes County for two weeks, in the amount of $1,7909415.84. DALY: Move approval, subject to review. LUKE: Second. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 11 of 13 Pages VOTE: DALY: Yes. DALY: Chair votes yes. 30. Before the Board was Consideration of Additions to the Agenda. A. Before the Board was Consideration of Signature of a Resolution Approving the Capital Projects List for the New County/State Building Complex and Other County Projects. Susan Ross gave an overview of the list of projects. DALY: Move approval of the project list. LUKE: Second. VOTE: DALY: Yes. Chair votes yes. B. Before the Board was Consideration of Signature of Resolution No. 2003- 004. Susan Ross added that this Resolution amends the project development fund to add these projects into the fund. Originally it was just the Becky Johnson project fund. The capital projects development fund was set up so that the proceeds of any property sold by the County would go into the fund so that the County would not have to go to the voters for approval for every purchase or development of County projects. The Human Services building was added, and the archives building project is being added to the list. LUKE: Move approval. DALY: Second. VOTE: DALY: Yes. DALY: Chair votes yes. Being no further items brought before the Board, Chair Luke adjourned the meeting at 11:30 a.m. Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 12 of 13 Pages DATED this 22"d Day of January 2003 for the Deschutes County Board of Commissioners. Dennis R. Luke, Chair Tom DeWolf, Commissioner ATTEST: Michael M. baly, Co71�issioner Recording Secretary Attachment: Exhibit A - Sunriver Service District Affidavit of Publication Documents Minutes of Board of Commissioners' Meeting Wednesday, January 22, 2003 Page 13 of 13 Pages Neil R. Bryant Re: Resolution No. 2003-003 Robert S. Lovlien January 21, 2003 Lynn F Jarvis John A. Berge Dear Bonnie: Sharon R. Smith John D. Sorlie I enclose the copies of Affidavit of Publication for the public hearing, along with a Fax: (541) 389-3386 VIA HAND DELIVERY Mark G. Reinecke transcript of public input from the public hearing held at the Sunriver Service Melissa P. Lande BONNIE BAKER Kitri C. Ford BOARD OF COUNTY COMMISSIONERS Lane D. Lyons, LL.M. 1130 N.W. HARRIMAN Jennifer A. Allen BEND, OR 97701 P:\DATA\SRS\CLIENTS\N-S\Sunriver Service District\SSD5.001 ttr to Bonnie Baker.wpd Re: Resolution No. 2003-003 BEND Sunriver Service District 591 S.W. Mill View Way Mail: P.O. Box 1151 Dear Bonnie: Bend, Oregon 97709 Phone: (541) 3824331 I enclose the copies of Affidavit of Publication for the public hearing, along with a Fax: (541) 389-3386 transcript of public input from the public hearing held at the Sunriver Service District Managing Office as requested by the County Commissioners. The MADRAS transcript was prepared from an audio tape of the proceedings that is very difficult 24 S.W. Fifth Street to hear. The transcript is the best we could prepare given the audio quality. Please Mail: P.O. Box 650 place these into the record and forward a copy of the public input to the Madras, Oregon 97741 Commissioners as soon as possible. Thank you for your assistance. Phone: (541) 475-2757 Fax: (541) 475-2962 Sincerely, www.bryantlovlienjarvis.com 41 SHARON R. SMITH SRS/klh Encl. P:\DATA\SRS\CLIENTS\N-S\Sunriver Service District\SSD5.001 ttr to Bonnie Baker.wpd AFFIDAVIT OF PUBLICATION P.O. Box 10127 / Portland, Oregon 97296-0127 / (503)226-1311 FAX (503) 222-5358 STATE OF OREGON, COUNTY OF MULTNOMAH, —ss. I, MARC CAPLAN, being first duly sworn, depose and say that I am a Manager of the DAILY JOURNAL OF COMMERCE, a newspaper of general circulation in the counties of CLACKAMAS, MULTNOMAH and WASHINGTON as defined by ORS 193.010 and 193.020; published at Portland in the aforesaid County and State; that I know from my personal knowledge that the PUBLIC NOTICE AND NOTICE OF PUBLIC HEARING DESCHUTES COUNTY BOARD OF COMMISSIONERS a printed copy of which is attached, was published in the entire issue of this newspaper for 1 time(s) in the following issues: 12/24/2002. - - Subscribe worn to before me this 3rd day of January, 2003. _. ....... OFFICIAL SEAL SCOTT O. CAPLAN NOTARY PUBLIC -OREGON COMMISSION NO. 361262 MY COMMISSION BORES SEPTEMBER 16, 2006 BRYANT, LOVLIEN & JARVIS, P.C. 591 MILL VIEW WAY BEND, OR 97702 PUBLIC NOTICE AND NOTICE OF PUBLIC HEARING' A Public Hearing will be held. by the. Des- chutes County Board of Commissioners, act- ing as the Governing Body of the Sunriver Service District, at 10:00 a,m, ,on Wednesday„January 8, 2003 in the Commis_ must The draft Findings for an exemption impetitive bidding requirements for clic contracts and classes of'pdblic Copies of the draft Findings are i the Public. Draft Finding g may be rpm the $unri`ver Service' District 745'Abbot Drive, Sunriver„oregon- ine number(541) 593-8622:At the _ firing; any interested parry may ap resent comment. ;ornments are also welcome and ?cgivedby,5:00 p:m. on'Tuesday,' '?903,:6t 1130,. N.W. Harriman, gon 97701. Both oral and written will be considered by the Des- . inty,Board of Commissioners act- GOvct. ernin'g Board of .the Sunriver stri H) 388-6572 or via e-mail at bonnieb@ deschutes.or.us. ' blished Dee. 24, 2002. PF10069482.1t Order No.: 10069482 Client's Reference No.: AND HrtluaVIL u1 r-UMIUdLIU11 STATE OF OREGON, COUNTY OF DESCHUTES I, BETTY SPRAGUE, a citizen of the United states and a resident of the county aforesaid; I am over the age of eighteen years, and not party to or interested in the above -entitled matter. I am the principal clerk of the printer of The Bulletin a daily newspaper of general circulation, printed and published in the aforesaid county and state as defined by ORS 193.010 and ORS 193.020. that SUNRIVER SERVICE DISTRICT GOVERNING BODY NOTICE OF PUBLIC HEARING a printed copy of which- is hereto affixed was published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: December 24, 2002 Icertify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Bend, Oregon, this 27 day of DECEMBER, 2002 Service ;rtl. ,on i 0.V9('1n7: of notice to be pasted here) / OF vol r.. over �ervme ' Disldcl Office at 5745"Abbot� FICIAL SEAL r KERI L REISS Drive, Sunnver,. Oregon i NOTARY PUBLIC -OREGON 97707; hone, n the (5 41)1 .. At the Public; MY COMMISSION NO. 356172 Hearing, a Hearing, any Interested party COMMISSION EXPIRES MAY 26 2006 - may appear .and. ,pre5enl'r — - - commen} ritten comments are alsq, - - - welcome and musk-,'..: Wh ed ey 5 00 p.rrr. pn,Tues,:: day;. Januaryry 7 2003, ah Bend:; Oreg6n;077o1 Both'oialand - wntlen ,cbmments will - consldded by the Deschutes 11 r. 9C " .' of Gpmmis?j Gov> ar, ing ✓ - .. Service Distncl -- The'location of the (taring is r accpSsible to per$ons with ,. ..= disabilities Please let. Bonnie Baker -know d you will need any sp"e'clel accommodations in order. to attend or: partici- - - 1.pate in the meeting.'iShe can t ; - - e,qeadhed at 1(541) 3il' • -_ 65' 2 or via a mail'at bonn ti - ` 85 C In the Court of the STATE OF OREGON for the COUNTY OF DESCHUTES Filed By Attorney for From the Office of Clerk. Deputy. SUNRIVER SERVICE DISTRICT Public Comments Hearing Held on December 12, 2002 "chair" Bill Starks (director) "Doug" Douglas Seator (elector) "Penny" Penny Bennington (director) "Bill" Bill Chapman (SROA GM) "Dave" Dave Setzer (director) "Susan" Susan Ross (county, representing Mike Maier) "John" John Salzer (director) "Tom" Thomas Gunn (elector) "Steve" Steven Hamilton (elector and SROA director) Item No. 3: Consideration of Public Contracting and Purchasing Policy Steve Hamilton: Did not talk Doug Seator: My understanding of Oregon contracting and purchasing statues is that under certain circumstances contracts, can be classified as personal services contracts, such as, administrative services, accounting and fleet management and are not subject to the public bidding process. Chair: Not subject to public bidding process, it is not implied that they would not be subject to consideration for obtaining bids, the same way we do for the District when making large capital purchases. But go ahead. Doug: It's imperative that there be a few checks and balances in the system to ensure that there are no improprieties and especially because of the relationship between SROA and the Service District. Yes . Yes. As I read these documents there are two checks and balances. One in the service district contract policy that says one of you will be designated as the personal services contact person and you will make sure the contract meets the needs of the district in terms of the quality of service offered and that the cost to the district is fair and reasonable .. and secondly _(see next paragraph for the second point) The County is also saying the same thing in the agreement that SROA has already signed with the County. There is a clause in there that says that any contract between the District and the SROA must include an analysis by an independent third party verifying the value and reasonableness of such an agreement. Yes Who on the Board is going to be designated as the person who will review the personal services contract? Will the Board have an independent third party reviewing all contracts, agreements, etc with SROA, as outlined in the agreement? If the answer is yes, who is that independent third parry? If the answer is no, I am interested in why not. Chair: As the draft is written, it will require an independent third party to do the review. Do you agree on that? That's the way it is written. The agreement between SROA and the District? Chair: Yes. The policy says there should there be an independent third parry reviewing etc? Penny: Right. That is in the agreement with the County? The County, but not with the SROA ???? I believe that says that any agreement between SROA and the Service District and if it will, who is going to be the independent third party? Chair: We have not yet designated one. It needs to take place. Doug: (talking over each other). Someone who is not a property owner in Sunriver? Chair: I think it has to be - you have to have people who are not part of us, that means none of us, none of our employees, Penny: Right, Chair: none of the owners, or the electors or the unit owners per say. So you have to find somebody who is independent. Penny? Right. I think that it doesn't compares itself. I don't think anybody is suggesting that this mystery is a public , technically . I think it is extremely important. Then there will be someone from the District involved, so as well. Chair: We haven't made that designation yet. Woman's Voice: We are taking third party as separate from our third party, each one of us, SROA has a lawyer, we have a lawyer. But that is not considered — that is not what we intend. Someone Else: I can tell you that (then laughter). The County is looking for a (More laughter). We haven't really accept that, but we recognize that (talking over each other and radio transmission in the background). Think one of the We have no trouble transferring I think we are board membexs: going to need. This is probably some of the things that Sharon is dial up. Susan Ross? Talking about third parties. We talked about independent auditor. (She talks again) ... the County auditor have a look at this stuff and see if everything looks right, we have talked about an independent auditor, but we have not gone out and posted - depending on the auditor yet. Is an auditor an appropriate position to review. I don't know yet. Penny? Not a financial auditor, I would think Susan: Right, who is appropriate? Another lawyer? And a comment (laughter) Penny: But you are going to need to have a financial auditor to . . We do have an internal auditor who is more of a slow auditor to look at the financial - not necessarily a financial auditor. That would be a good person to pick up. But your internal, I mean financial Chair: No No. 1 agree with Susan. In fact, do you have any suggestions on that regard Doug? Doug: I don't Know of anyone who provides this service. There has to be somebody ... the chair start stalk in over him again ... Tom Gunn: We are not unique - more talking over each other Tom Gunn?? There is also a local group, that may not be appropriate, but it deals with conflict resolution, This is not a conflict, but they are used to looking at things objectively maybe they could help us. An issue in a contract will end up as everybody's official contract review board, unless somebody else has designated something. Dispute resolution. That is one type of contract review .. What we are talking about is whether or not you have improprieties in the first place. Is that right? Penny: Right. Another contacts with that today. You don't know that. Tom Gunn: Yeah we do. Perhaps. We have reviewed this with Gary Feibeck. You know Gary. Penny: Right. Susan: We reviewed this and pointed it out that we thought it was inappropriate. On the other hand, this is a first year operation, and there will be unforeseen costs. This is a point. There will be some price increase in the first year of operations because you always have things that come up that you cannot predict. So this end us in the ballpark. This will be okay for a first year. But it really should be. If we could have them make comments on what we are doing is wrong, but it is quiet fast (?) Chair: Lets take that independently of the current discussion. Okay? Okay. It is appropriate to do that, but unless there is a specific relationship to the discussion on the table unless the contract depicts the policy draft. What I think that , is talking about having a comparative as our way of the personal services included. It is not in the normal realm of the process. So if on top of that, the cost figures are deflated. This is an ugly situation. Chair: I am not disagreeing with you. I am just saying that I think the specifics in a contract which need to be talked about, lets talk about independently of the general policy associated with doing anything. Penny: I guess part of this discussion though would be, is there something that needs to be put into our contract policy that assures? What your going to inspect something that we already have a signed agreement between the County and us, if there is that, we would do third parry. What you are saying is, if you do chose to utilize that exemption indiscriminately, should there be some kind of a clause in that to say that a third party always needs to review it. Why not use the same clause again right in the policy statement even though that is in the agreement with the County to take steps Right. Someone else: That is very appropriate question. Woman: Right. He, I am sorry, are you all Man says something and they laugh Bill Chapman: You know as far as ending the discussion about the review of this policy and _at the first meeting the Chair made a suggestion that comments be forwarded to Dave and I did do that, presuming that those would be forwarded on to -_Sharon and not have to bring those up again. Dave Setzer: They have been forwarded to Sharon. I took them up yesterday. Bill Chapman: Because I brought up that same comment at the first meeting, in order to clarify the third party review clause of the Management Agreement Chair: In fact it is appropriate that you bring them up at the same time and say that I already put that on the page. It reinforces the point. Penny: The question I have as far as, if we can step back a minute, we had thrown a couple of questions out there to Sharon that she was supposed to get back to us on. Chair: She's been sick all week. Penny: Right. Right. So we still have those hanging. We to get the information. Now what I heard at the time is that that they would start this two week comment . We can get that ball rolling, but we still ourselves, as board members, are final Yes Okay, during that two week comment section Yes Okay, I just wanted you to know that we haven't seen Chair: I remind you that the draft needs to be essentially wrapped up sooner than that. Because you have to have time now to take the final draft and let people review it. Not only us, the owners, interested parties, and you know, even time for County counsel to look at it. Penny: One of the key questions was last week to Sharon was the whole issue of time line. She reiterated that we as a board should not be committing to something that we are tying some other future board's hands on. Her response was that there is that 90 -day clause to which we can pull out of that administrative contract. There is that question, should we be setting up a contract that is somewhat open ended other than that 90 -day notice . I am assuming there is some long term contracts with the County that they enter into that have sufficient with the 90 -day clause. Chair: What Penny is talking about to some degree, is the contract, and again, I think we are getting off the point a little bit here. Penny: What she was going to look at - talking over each other - she was going to enter the policy and not the Chair: In fact is was a legal question we put to Sharon last week and that is, Can we legally enter contracts, write contracts, that goes beyond the term of what we are budgeted for? So for example, what Tammy is talking about is administrative services contract that is currently in place for SROA, does that 120 -day clause Tammy: says something Notice to each other for determining contracts. But the contract is self-dealing, and in that regard, unless one of the two parties take action, the time frame will continue to run on after July I", whether there is a budget or not. See the point? Woman: There is a clause at the end. Man: The clause with the County .. If you agreed with the County for financial purposes, the rates may can only go (others talking) I would suggest that you do the same thing for other contractors because contracts with us are always open ended, because that clause is built in. Another Man: That, that, that, that's a point. Dave Setzer: This contract with SROA and the District is on-going, but it will be reviewed yearly. So there is a review. Penny: That is - there is nothing in here in the contract policy that had a time line guidance for us. That is the question I posed to Sharon and I think you have posed even more specific question, but you also (man talks over her) So that is now in Sharon's hands to try to deal with that issue. Chair: We have a lot of people talking here and we have to get some order here. Doug, you have more things to put on the table? Doug: No. That is it. Checks and balances are needed and somebody should be designated, an independent third party, to review any contracts between SROA and the District. Chair: Fine. Steve? (Steve Hamilton is asked if he has any additional comments) Steve: No. [END OF PUBLIC COMMENTS] January 22, 2003 TO: Bonnie Baker (-,A�l FROM: Nancy Blankenship RE: Sunriver Service District — Contract Review Board We received two of these notifications and have retained one for our files. Wanted to be sure that the governing body (Board of County Commissioners) received one as addressed in ORS. Neil R. Bryant Robert S. Lovlien Lynn F. Jarvis January 21, 2003 John A. Berge Sharon R. Smith John D. Sorlie VIA HAND DELIVER YAND Mark G. Reinecke Melissa P. Lanae CERTIFIED MAIL RETURNRECEIPT REQUESTED Kitri C. Ford NANCY BLANKENSHIP Lane D. Lyons, LL.M. DESCHUTES COUNTY CLERK Jennifer A. Allen DESCHUTES SERVICES BUILDING 1340 NW WALL STREET BEND, OREGON 97701 BEND 591 S.W. Mill View Way Re: Sunriver Service District - Resolution No. 2003-002 Mail: P.O. Box 1151 Bend, Oregon 97709 Dear Ms. Blankenship: Phone: (541) 382-4331 Fax: (541) 389-3386 Our firm represents the Sunriver Service District. ORS 279.055(2) requires a local public contract review board to file the Resolution designating itself as a local public MADRAS contract review board with the governing body. Please file this Resolution pursuant 24 S.W. Fifth Street to ORS 279.055(2). Mail: P.O. Box 650 Madras, Oregon 97741 If you have any questions regarding this matter, please do not hesitate to contact me. Phone: (541) 475-2757 Fax: (541) 475-2962 Sincerely, www.bryantlovhenjarvis.com SHARON R. SMITH SRS/klh Encl. P:\DATA\SRS\CLIENTS\N-S\Sunriver Service District\SSD5.0021tr to County Clerk.wpd REVIEWED ('P -S For Recording Stamp Only BEFORE THE GOVERNING BODY OF THE SUNRIVER SERVICE DISTRICT A Resolution: Designating the Governing Body as the District's Local Public Contract Review Board * RESOLUTION NO. 2003-002 and Delegating that Authority to the Managing Board. WHEREAS, the Governing Body of the Sunriver Service District ("District") hereby designates, pursuant to ORS 279.055(2), that it is the District's Local Public Contract Review Board (`Board"); and WHEREAS, the Governing Body of the Sunriver Service District has delegated its authority to the Managing Board of the Sunriver Service District for administrative and operational issues, now, therefore, BE IT RESOLVED BY THE GOVERNING BODY OF SUNRIVER SERVICE DISTRICT, as follows: Section 1. The Governing Body of the District affirms that it has designated itself as the District's Local Public Contract Review Board, and that it may exercise the rule making authority to carry out the powers and duties of the District's local public contract review board by adopting such rules by resolution after conducting a public meeting or public hearing, where required by law; Section 2. The Governing Body of the District hereby delegates the authority to act as the Local Public Contract Review Board to the Managing Board. In carrying out such duties as a Local Public Contract Review Board, the Managing Board shall have the authority to hear all protests and shall act as a hearings body on behalf of the Governing Body. Any decision of the Managing Board shall be appealable and reviewable by the Governing Body who shall act as the final decision making authority. DATED this 9� day of January, 2003. BOARD OF TY COMMISSIONERS OF DZSCS COUNTY, OREGON DrWS R. LUKE, Chair TOM DEWOLF, Commissioner ATTEST: _ MI HAEL M. DALY, Com issioner Recording Secretary PAGE 1 OF 1 —RESOLUTION NO. 2003-002 (JANUARY 8, 2003) SSD.001 RESOLUrION.WPD