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2003-857-Minutes for Meeting May 05,2003 Recorded 5/8/2003DESCHUTES COUNTY OFFICIAL RECORDS CJ 1003,857 NANCY BLANKENSHIP, COUNTY CLERK J V J COMMISSIONERS' JOURNAL 05/08/2003 08:36;19 AM IIIIIIIII IIIIIIIIIIIII illll IIII III 2003-000887 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 ADMINISTRATIVE LIAISON DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, MAY 59 2003 Commissioners' Hearing Room - Administration Building - 1130 NW Harriman St., Bend Present were Commissioners Dennis R. Luke, Tom De Wolf and Michael M. Daly. Also present were Mike Maier, County Administrator; and Anna Johnson, Commissioners' Office. Others present at varying times during the meeting were Tom Blust and George Kolb, Road Department; Susan Ross, Commissioners' Office; Mark Amberg and Laurie Craghead, Legal Counsel; and Cheryl Circle, Finance Department. No media representatives or other members of the public were in attendance. The meeting began at 1: 30 p.m. 1. Discussion regarding County Involvement in the Millican Road (West Butte Road) Improvement Project. Tom Blust explained that there is approximately 15 miles of unpaved road to be addressed in this project, with about half of it being in Crook County and the other half in Deschutes County. The Oregon Department of Transportation was to fund these improvements originally, but have now backed off from that offer. Crook County has asked that Deschutes County contribute half of the cost of improving the road, which would be about $2 million. They are willing to have Deschutes County pay this amount over three years. He discussed the amount of traffic that might be diverted, based on an ODOT study done in 1999; this would benefit the trucking industry due to shorter mileage by not having to go into Bend to head north. At this time the County has agreed to pay one-half of the cost of an environmental assessment. Minutes of Board of Commissioners' Administrative Liaison Monday, May 5, 2003 Page 1 of 6 Pages He added that the Road Department is struggling to keep up with its existing projects with uncertain funding. Committing these dollars to this project would impact the County's overlay and asphalt projects, and equipment replacement funds. Commissioner DeWolf asked what the benefit of doing this would be to Deschutes County, since the road primarily links Highway 20 to Prineville. Commissioner Luke stressed that this would be a positive action regionally, and is supported by the area's cities and others. He added that the State is unable to commit to this being a state highway at this point, but that it probably will be eventually. Commissioner DeWolf said that the County would be hard-pressed to afford this right now, especially since the County has high traffic volume roads locally to maintain. Mr. Blust stated that Crook County has applied for federal grant funding, but won't know the results of that application for some time. Crook County is also doing the engineering and surveying, and has stockpiled material for the project. He added that they will likely proceed anyway, since they really want to encourage employment opportunities there. Commissioner Daly said that he feels there won't be that much truck traffic on the road once they have to drive on the steep decline into Prineville. He added that the biggest beneficiary to the road would be the Les Schwab Company. Commissioner Luke observed that although the project would benefit Crook County and Prineville, Les Schwab is a good corporate citizen and employer, and the project needs to be viewed as regional. He said he would support Deschutes County's involvement if the amount was $1 million and it was spread over ten years. He added that the Board can't just consider what Deschutes County would get out of it. At this time, Mr. Blust said that he would contact representatives of Crook County to go over some of the issues raised, and will report back to the Commissioners. It's possible that a meeting of representatives of the two counties might be arranged to discuss it further. Minutes of Board of Commissioners' Administrative Liaison Monday, May 5, 2003 Page 2 of 6 Pages 2. Update on the Dowell/Kuhn Mediation Matter. Laurie Craghead reported that there has been no settlement yet, but both parties have agreed to try once more. The Kuhns want to meet without the mediator; or at least the current mediator, who is felt to be not a strong enough personality to handle this contentious situation. Ms. Craghead added that there may be some additional State funds left over from previous mediation grants to cover the costs. The Kuhns have indicated they want the County to do more, such as put ordinances in place that favor their point of view. There is a June 30 deadline for the Board to rule on hearing the appeal. 3. Discussion of Twin Lakes Resort Tax Issue. Ms. Craghead said that there is a Wednesday deadline for the resort to pay back taxes; the County can file for a default judgment at that time. The owner of the resort has asked that the County wait until after June 10, as funding may be in place at that time to pay the taxes. The County was also asked to consider the personal situation of the owner, who just lost her mother to cancer after a year of taking care of her. She said she would pay the full amount of the last year plus the required security deposit for this year. If the County obtains a default judgment, any real property owned by the resort owner can be attached. Commissioner Daly observed that if the judgement is filed, it is unlikely that the owner will be able to obtain a loan. It is also unknown if she does own any other property. This would certainly force her into bankruptcy. Cheryl Circle said that at the very least, the owner needs to file the past due reports right away. Commissioners Daly and DeWolf indicated that perhaps the owner should be given until June 10 before the County takes action. Commissioner Luke stressed that this person should not get a break. The Board will discuss this issue again on Wednesday. Minutes of Board of Commissioners' Administrative Liaison Monday, May 5, 2003 Page 3 of 6 Pages 4. A Discussion regarding the Room Tax Ordinance. Mike Maier said that a committee was formed to discuss making the room tax situation more consistent. This committee included Marty Wynne, Mark Amberg, Cheryl Circle and various representatives of the resort industry. Commissioner DeWolf stated that Tom Leurson of Sunriver contacted him to discuss the situation. Evidently there is very little agreement within the group as to how this should be handled; indeed, whether there should be a change at all. The inconsistency is that some resort operators have been paying room tax based on the non -optional items of their guests' bills, and others have not. All kinds of compromises have been brought up, but agreement cannot be reached. Some want to have their resorts grandfathered in, and others want the tax charged on some non -optional items and not others. Mike Maier said that the simplest way to handle it would be to have the tax paid on any items that are not optional, such as required recreation fees and housekeeping fees. He added that perhaps a compromise regarding a cap on the recreational fee can be put in place. Mark Amberg emphasized that if the group cannot reach a consensus, the Board will need to make a decision. In his opinion it should be kept clean and simple. It is not a new tax; it just has been interpreted differently by various resorts. However, the resorts that have been paying the tax have done so on the advice of their auditors. This ordinance would simply clarify the existing ordinance. The Board directed that a meeting to include them, County staff and some representatives of the resorts who have been involved in the process thus far should get together soon to discuss this further. 5. Update on County Projects. Susan Ross explained that there are a few problems with the Olney access to the new building. There is a twenty -foot easement that was put into place with the owner of the veterinary business that is adjacent, and she may take issue with the increased traffic. This could require mitigation in the form of a payment. Also, because the easement is twenty feet and not the standard twenty-four, it may be that the road can only be one way instead of a right -in, right -out access. City engineers are now working on this; and Steve Scott, the County's real estate broker, will calculate the value of the easement. Minutes of Board of Commissioners' Administrative Liaison Monday, May 5, 2003 Page 4 of 6 Pages Commissioner Luke stressed that this needs to be resolved soon, as this access will be important before the building is even up; for instance, voters can use it during election time. Ms. Ross said that the burden of proof statement is now ready to file with the City. Copies have been provided to the Commissioners. She also explained that the CM/GC bid has been placed in the Journal of Commerce and the Bulletin. The Board then discussed who might be added to the selection committee. At the Board's recommendation, Ms. Ross will contact Kevin Wing of the Central Oregon Builders' Association, and Wes Price and Chuck Rieb, who are all familiar with the building industry in Central Oregon. Ms. Ross then said that Commissioners Luke and Daly had suggested to Rick Isham that a separate bid be set up for the grading of the warehouse site. She said that the architect is uncomfortable with this, because the eventual contractor may not like the preparation work that was done. She added that this work could probably be done in a week's time. She stated that this adds another layer to the work that is being done because of an additional RFP and selection process, the award portion, and an additional contract to administer. Since a great portion of the cost would be mobilization, it is very likely that Keeton King would bid on the work and would come in lowest because their equipment is already nearby. Commissioner Luke said that he feels others should have a shot at doing this. Ms. Ross replied that they can bid on the subcontract work anyway. Commissioner Luke stated that he thinks this would move the work along faster. Ms. Ross said that she thinks there could be maybe a savings of a week's time at best, since the bid process takes at least a month. Also, additional grading plans may be necessary after the work is done. She explained that the CM/GC bids are due in late May anyway. Minutes of Board of Commissioners' Administrative Liaison Monday, May 5, 2003 Page 5 of 6 Pages Commissioner DeWolf asked why he wasn't aware of this apparent decision. Commissioners Luke and Daly explained that they had discussed it with Rick Isham individually, and evidently Mr. Isham understood their remarks as instructions that he should go forward with it. Commissioner DeWolf said he is happy with the original CM/GC process. Commissioner Daly indicated he has some concerns about having to acquire a second set of grading plans, and that there could be some finger -pointing if the contractor doesn't like the work that was done or if there are problems later. Being no further items brought before the group, the meeting adjourned at 3: 30 p. m. DATED this 5th Day of May 2003 for the Deschutes County Board of Commissioners. ATTEST: Recording Secretary ennis R. Luke, Chair Tom 6eWolf, Comm fssioner ichael M. Daly, mmissioner Minutes of Board of Commissioners' Administrative Liaison Monday, May 5, 2003 Page 6 of 6 Pages