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
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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
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