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2004-86-Resolution No. 2004-009 Recorded 1/27/2004RE*IEELEGA DESCHUTES COUNTY OFFICIAL RECORDS CJ 1404'86 NANCY BLANKENSNIP, COUNTY CLERK COMMISSIONERS' JOURNAL O1/Z7/Z004 A1'ZO'36 PM 111111111 1 1111111111111111111 For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Adopting the Updated Community Investment Strategy; and, Where Appropriate, Utilizing the Priorities Contained within the Strategy as Guidance in Directing Resources toward Community and Economic Development Activities * RESOLUTION NO. 2004-009 A Resolution Adopting Community Investment Strategy WHEREAS, Crook, Deschutes and Jefferson counties have entered into an agreement to create the Central Oregon Community Investment Board for the purpose of preparing a regional investment strategy and rural action strategy and receiving regional investment funds and rural investment funds; and WHEREAS, regions that fail to submit a regional investment strategy and rural investment strategy shall not receive moneys for projects and activities to implement those strategies from the Oregon Economic and Community Development Department; and WHEREAS, the Central Oregon Community Investment Board has updated the Central Oregon Community Investment Strategy to meet the statutory requirements for preparation of both the regional investment and rural investment strategies; and WHEREAS, the Two -Year Implementation Strategy contained within the Central Oregon Community Investment Strategy will serve as the region's Rural Action Strategy; and Resolution No. 2004-009 1/22/2004 Community Investment Strategy Page 1 of 2 Pages WHEREAS, the Central Oregon Community Investment Strategy will also be utilized as the Comprehensive Economic Development Strategy for Central Oregon Intergovernmental Council, a federally recognized economic development district; NOW, THEREFORE BE IT RESOLVED that the governing body of Deschutes County hereby adopts the updated Central Oregon Community Investment Strategy, recommends that it be submitted to the Oregon Economic and Community Development Commission and the Governor of the State of Oregon for consideration under the 2003-05 regional investment and rural investment programs, and commits to utilizing the priorities contained within the Strategy as guidance in directing resources towards community and economic development activities where appropriate. DATED this �& day of January 2004. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON x/0. 411�1 0 0 4 0/11 MICHAEL M. DAL , Chair ATTEST: DENNIS R. LUKE, Commissioner Recording Secretary TOM EWOLF, Commissioner Resolution No. 2004-009 1/22/2004 Community Investment Strategy Page 2 of 2 Pages Central Oregon Community Investment Strategy Prepared by the Central Oregon Intergovernmental Council N January 7, 2004 Central Oregon Community Investment Strategy Table of Contents COCIB and COIC Board Members 3 Regional Vision ----------------------.. --•---•--------------- .--------------------•------.--4 Introduction 4 ExecutiveSummary .......................................................................................................... 5 Part One — Resource Analysis ........................................................................................... 8 Section 1. Economic & Physical Resources____________________________________________________________8 Section 2. Human Resources 19 Section 3. Natural Resources 24 Part Two — Long -Term Implementation Strategy__________________________________________________________31 Section 1. Economic Resource Priorities 32 Section 2. Human Resource Priorities 35 Section 3. Natural Resource Priorities -------------------------------------------------------------------- 37 Section 4. Necessary Actions to Implement Strategy _............................................ 38 Part Three — Two -Year Implementation Strategy__________________________________________________________40 Part Four — Barriers 42 Part Five — Management Strategy ................................................................................... 44 Section 1. Administrative Agent.............................................................................44 Section 2. Application Process _--......... .... •.... •... •----------------------------------------------------- 45 Section 3. Grants to Private Businesses 46 Section 4. Other Management Policies .___________________________________________________________•...... 46 Section 5. Involvement of the Disadvantaged, Minority Groups & Rural Areas... 47 Part Six — Evaluation Strategy .............................................................................. ......... 49 Appendix A. COIC Administrative Agreement__ 50 Appendix B. Additional Management Policies of the Central Oregon Community Investment Board 56 Appendix C. 2001-2003 Performance Measures ............................................................ 59 Central Oregon Intergovernmental Council Page 2 Central Oregon Community Investment Strategy CENTRAL OREGON COMMUNITY INVESTMENT BOARD OFFICERS AND MEMBERS 2003 - 2005 Crook County Jefferson County Deschutes County Scott Cooper, Board Chair Bill Bellamy, Vice Chair Susan Ross, Vice Chair Crook County Judge Jefferson County Commission Deschutes County Brenda Comini, Member Janelle Orcutt, Member Tom DeWolf, Member Comm. on Children & Families Madras Sanitary Service Deschutes County Commission Larry Henderson, Member Jim Wilson, Member Eric Sande, Member Les Schwab Tire Centers Professional Software Redmond Chamber of Commerce Bobbi Young, Member Sal Sahme, Member Alan Albertini, Member Bank of the Cascades Confed. Tribes of Warm Springs Spring Green Lawn Care Sally Goodman; Member John Cumutt, Member Gary Peters, Member Prineville Disposal JBC Management Bend Chamber of Commerce Larry Smith, Alternate Parrish VanWert, Alternate Ric Nowak, Alternate Les Schwab Tire Centers Madras Jefferson Chamber of Sisters Area Chamber of Commerce Commerce Fred Rodgers, Alternate Ray Rangila, Alternate Confed. Tribes of Warm Springs VACANT CENTRAL OREGON INTERGOVERNMENTAL COUNCIL Board Members, 2004 Mike McCabe Frank Morton Sharon Miller Crook County City of Madras Under/Unemployed Tom DeWolf Susan Binder Clint Jacks Deschutes County City of Metolius Agriculture/Agribusiness Bill Bellamy Brenda Comini Chris Bellusci Jefferson County City of Prineville Business and Industry Linda Johnson Jay Patrick Vacant City of Bend City of Redmond Timber and Wood Products Dan Hamden Judy Trego Vacant City of Culver City of Sisters Tourism and Recreation Sal Sahme, Ex -Officio Member Conf. Tribes of Warm Springs Central Oregon Intergovernmental Council Page 3 Central Oregon Community Investment Strategy REGIONAL VISION The Central Oregon region is known for its quality of life. Our quality of life is focused on our heritage, on the distinctive nature of our communities, and on our access to the region's natural resources. The vision supports our quality of life and strengthens our communities. Growth in our region will reflect cultural diversity and provide opportunities for all residents. Our goals will provide jobs by supporting development of both our workforce and our industries. Our workforce will have access to high quality education and training opportunities in both basic skills and advanced technologies. Our industries will be globally competitive, technologically aggressive, and environmentally balanced. Our visionalso supports the growing sense that we are part of a regional and statewide community. As regions of the world emerge into the year 2004, Central Oregon will be recognized for shaping its attention and directing its improvement to its abundant human resources and its historical strengths. INTRODUCTION The Central Oregon Community Investment Strategy was created to direct investments in Crook, Deschutes and Jefferson counties and to drive collaborative efforts among local governments and the private sector. The Strategy also meets the statutory and administrative requirements of two external entities that provide grant funding for economic and community development programs in Central Oregon — the State of Oregon Economic and Community Development Department and the U. S. Economic Development Administration. The State of Oregon Economic and Community Development Department provides grant funding to the Central Oregon region through the Regional Investment and Rural Investment programs. These programs were created by the Oregon State Legislature and funded through the Oregon State Lottery with the intent of furthering economic and community development in the State. Regional and Rural Investment funding is distributed to regional boards across the State. These boards are charged with preparing a regional investment strategy and rural action strategy; receiving, distributing and managing regional investment and rural investment funds; and preparing all required reports for the regional and rural investment programs. In Central Oregon, the counties of Crook, Deschutes and Jefferson formed the Central Oregon Community Investment Board on October 6, 1999 to serve this purpose. The Central Oregon Community Investment Strategy also serves as the Comprehensive Economic Development Strategy prepared for the U.S. Economic Development Administration. The Central Oregon Intergovernmental Council receives grant funding from the U.S. Economic Development Administration for planning activities which lead to economic development within the Central Oregon Economic Development District, consisting of Crook Deschutes and Jefferson counties. Central Oregon Intergovernmental Council Page 4 Central Oregon Community Investment Strategy The first part of the strategy is a resource analysis of the unique and significant economic and physical, human and natural resources of the Central Oregon region. Part Two identifies the region's long-term economic and community development priorities and describes the actions required by the private sector and local, state and federal governments in order to address these priorities. The third part details the region's short-term economic and community development priorities by describing projects and activities for implementation in the next two years. Part Four analyzes the barriers to implementation of the strategy and explores ways to overcome those barriers. Part Five of the strategy describes the Management Strategy for the Regional and Rural Investment programs and details the region's objectives for these programs. This part also describes the process and criteria that will be used by the Central Oregon Community Investment Board to distribute Regional Investment and Rural Investment grant funding. The Board's Strategy for the involvement of disadvantaged and minority groups and rural areas and their Strategy for participation in the multi region program are also included in Part Five. The final section of the Strategy identifies regional benchmarks and other performance indicators that will be used to measure the progress of the region toward achieving its objectives. EXECUTIVE SUMMARY Central Oregon has entered the 21St Century with both strong assets and significant challenges. This Community Investment Strategy capitalizes on the assets of Central Oregon communities and addresses the challenges we will face in the coming years. From 2004 to 2006, the Central Oregon Community Investment Board will be investing approximately $520,000 and the Central Oregon Intergovernmental Council will be investing approximately a .5 FTE of staff time to implement this strategy. These two entities will also be seeking the support of local, state and federal partners to leverage their investments. Two trends dominate the economy within Central Oregon at the conclusion of 2003: rapid population growth and declining job opportunities. Central Oregon experienced the highest statewide rates of population increase and job creation from 1990 to 2000. However, since 2000 rapid population growth continued while job losses in the region have mirrored statewide trends. This has lead to unemployment rates higher than the state average, serious strains on the region's infrastructure, and a lack of affordable housing in some Central Oregon communities. Growth in real per capita income has leveled off and is consistently outpaced by growth in per capita income by the State of Oregon. Economic forecasts predict that Central Oregon's economy will continue to grow over the next six years; but will see a greater expansion of service-oriented businesses at the expense of manufacturing industries. These economic changes may impact wage levels and create a workforce segment that requires assistance in transitioning to the new economy. The Community Investment Strategy will seek improvement to the region's economy by identifying priorities for the development of the region's economic and physical resources, human resources, and natural resources. These priorities include: Central Oregon Intergovernmental Council Page 55 Central Oregon Community Investment Strategy Economic and Physical Resources • Business Development. To assist Central Oregon communities to achieve business development throughout the region. • Workforce Development. To make increased employment opportunities and incomes available to people living in Central Oregon, while business and industry continues to prosper and grow; and to increase collaboration among partners (both public and private) resulting in a responsive, forward thinking system that is able to support and adapt to the needs of a changing economy. • Infrastructure. To assist Central Oregon communities provide the water, sewer, street and storm drainage infrastructure needed to accommodate growth and provide a healthy environment for existing Central Oregon residents and businesses. • Transportation To seek improvements to regional highways, local streets, bike paths, and airports; to develop additional transportation options to ensure a mobile workforce; and to develop solutions to road maintenance equipment acquisition challenges for areas with demonstrated need. • Telecommunications. To accomplish prosperous communities through unified telecommunications by: securing affordable advanced telecommunications services for every Central Oregonian; and providing the training and support necessary for Central Oregonians to effectively utilize telecommunications. • Emergency Services. To assist rural areas in providing emergency services and to promote regional cooperation in meeting emergency service needs. • Public and Non -Profit Facilities and Parks. To support the development of park and recreation facilities and public and non-profit facilities, particularly in rural areas. • Housing. To ensure that Central Oregonians have access to housing which meets their needs and contributes to a healthy community. Human Resource Priorities • Social Services. To provide efficient, effective social services to constituents in a nor - stigmatizing, comprehensive way to build a healthy community. • Poverty. To alleviate poverty in Central Oregon by addressing its root causes. • Children and Youth To have strong, nurturing families and caring communities that result in healthy, thriving children and youth • Substance Abuse and Crime. To expand substance abuse and crime programs with an emphasis on prevention, effective treatment and community justice. • Cultural Assets (arts, history, etc.). To support efforts to develop a regional Strategy for the preservation, expansion, and utilization of Central Oregon's cultural assets and to implement projects with unique community value or regional significance. • Community Involvement/Leadership. To support community involvement and leadership activities which build community collaboration and increase the capacity of the community take responsibility for and address its most pressing issues. • Health To increase access to medical care in rural areas and support efforts which provide affordable health services to loves and moderate -income populations. Central Oregon Intergovernmental Council Page 6 Central Oregon Community Investment Strategy Natural Resource Priorities • Water Quality & Quantity. To support efforts to develop and implement market-based solutions to improve instream flows and water quality. • Air Quality. To support efforts to develop a regional Strategy for the effective maintenance of air quality in Central Oregon. • Public Lands Management. To support efforts to develop a regional Strategy for the optimal use of public lands in Central Oregon. • Biodiversity. To support efforts to develop a regional Strategy for addressing sensitive, threatened, and endangered species in the region. The Central Oregon Intergovernmental Council and the Central Oregon Community Investment Board will use these priorities to direct their investments in the region. The Central Oregon Intergovernmental Council will commit staff time to planning activities that lead to economic development in the region. The Central Oregon Community Investment Board will provide grants to public, private and non-profit organizations through a competitive application process. Grants will be managed, monitored and evaluated by the Central Oregon Intergovernmental Council, which serves as the administrative agent for the Community Investment Board. Central Oregon Intergovernmental Council Page 7 Central Oregon Community Investment Strategy PART ONE - RESOURCE ANALYSIS SECTION 1. Economic and Physical Resources 1.1 Demographics The combined population of Crook, Deschutes, and Jefferson Counties is an estimated 170,700, according to the Portland State University Population report, 2002. Deschutes County contributes 76.4% of the region's population with Crook and Jefferson counties contributing 11.9% and 11.7%, respectively. The three -county region accounts for 4.8% of Oregon's total population. From 1990 to 2000, the region grew by 49% - by far the fastest growing region in the state. Rapid growth continues in the 21St century, with an estimated regional growth rate of 11.2% since 2000. Deschutes County continues to leads the region in growth, with a 13.1% increase from 2000 to 2003. 1.2 Income and Labor Force Central Oregon's rate of job growth has declined rapidly since 2000. Central Oregon increased jobs by 51% from 1990 to 2000. Since 2000, however, Crook and Jefferson Counties have experienced a net job loss. Crook County has suffered the third highest rate of job loss in the Central Oregon Intergovernmental Council Page 8 Central Oregon Community Investment Strategy state during that time period — a 7.55% decrease in jobs. Jefferson County has faired only slightly better, with a 4.88% decrease in jobs. Meanwhile, Deschutes County's 1.44% increase in jobs illustrates the dramatic differences between counties, and resulted in a net overall job gain In the last ten years, inflation-adjusted per capita personal income has experienced a steady increase equal to that of the overall Oregon economy. After a rapid increase in per capita income during the 1980's, this increase has been more gradual. Deschutes County enjoys the highest per capita income in the region, and in 2001 Deschutes County had the 5th highest per capita income in the state, after ranking within the top five counties with the highest per capita income Central Oregon Intergovernmental Council Page 9 Central Oregon Community Investment Strategy throughout the 1990's. Crook and Jefferson Counties have not fared as well. Crook County dropped from 22nd statewide in 1990 to 28th in 2001, in part due to the decline in the wood products industry. Jefferson County has remained at or around 33`d statewide from 1990 to 2001. With the national economic downturn, Central Oregon's per capita income rates are in danger of showing a decline for the first time since the early 1980's. Between 1989 and 1997, median household income increased at a faster rate in the Central Oregon region compared to the State of Oregon. However, this trend has reversed with Oregon's median income growing faster than Central Oregon's since 1998. Central Oregon's unemployment rate hit a 30 -year low in 2000. However, the economic slowdown that began in 2001 has resulted in higher unemployment rates. Oregon's rate dropped from 5.5% in 1990 to 4.9% in 2000, then rose to 7.5% by the end of 2002. Within Central Oregon, the regional rate increased from 6.5% in 2000 to 8% in 2002. The rates varied by county, with Crook County experiencing the highest rates. In 2000, Crook's unemployment rate was at 8.4%. By 2002 the rate had increased to 10.3% - one of the highest rates in the state. By October of 2003, Crook's rate had dropped again to 8.4%, but still was the highest rate in the region. Overall, unemployment rates continue to drop around the region in 2003. As indicated in Table 3, Central Oregon exceeds state averages in service, sales, construction, and production iobs in 2002. According to Oregon Employment Department projections, the highest levels of job growth will occur in retail sales, health care, and services industries. Table 4 reflects employment projections over the next decade: Central Oregon Intergovernmental Council Page 10 Occupational Group 2002 Employment % of Total Oregon % of Total Professional and Related 8,203 12.4% 15.5% Service 12,490 18.8% 15.2% NJ 7 •; Office and Administrative Support 10,904 16.4% 16.6% Construction and Extraction 3,963 6.0% 4.2% Production 5,862 8.8%° 7.9% ource: Oregon Employment Department According to Oregon Employment Department projections, the highest levels of job growth will occur in retail sales, health care, and services industries. Table 4 reflects employment projections over the next decade: Central Oregon Intergovernmental Council Page 10 Central Oregon Community Investment Strategy 1.3 Industry Composition Due to rapid population growth, construction employment has expanded substantially in the past decade. The services and retail trade industries will continue to grow at a rapid rate over the next ten years. Central Oregon Intergovernmental Council Page 11 Industry 2002 2012 Change % Change a " r 65;630 Nondurable Goods Manufacturing 1,080 1,160 80 7.4% Transportation and Public Utilities 2,510 2,780 270 10.8% ate Tracie:. o . i {? Retail Trade 14 550 17 350 2,800 19.2% Services 17,590 21,650 4,060 23.1% r ource: Oregon Employment Department Central Oregon Intergovernmental Council Page 11 Central Oregon Community Investment Strategy Wood products will continue to lose jobs over the next ten years, with a projected growth rate of -2.8% in total employment. While not losing jobs, local government and special trade contractors are maior industries that will not Brow as rapidly as other sectors. Crook County is still heavily dependent on lumber and wood products manufacturing, which accounted for 24 percent of the nonfarm employment in 2002. In the nonmanufacturing sector, trade and government employment together make up about 48 percent of nonfarm payroll employment in the county. Based on numbers of jobs within private sector industries, secondary wood products leads Crook County, with the distribution and warehouse industry ranking second. Crook Count Total Em to men 2002 Employment 2012 Employment Change % Growth T 424 It Deschutes Count Local Government 7,422 8,042 620 8.4% Secondary Wood Products 1,643 Health Services 5,081 6,446 1,365 26.9% Jefferson County b Primary, Secondary Wood Prod. S ecial Trade Contractors 3 040 3 290 250 8.2% M c 12 Source: Central Oregon Area Profile 2003, EDCO Health Services 5 081 6,446 1,365 26.9% Business Services 2,995 3,761 766 25.6% d k •v mme' Hotels and Lod in Places 2,033 2 621 588 28.9% nrlts Gro to 1 Furniture and Home Furnishings 657 862 205 31.2% i'scel#a ': Hotels and Lod in Places 2033 2 621 588 28.9% ettt3r� . •�. •;> Health Services 5,081 6 446 1 365 26.9% 0 2 ource: Oregon Employment Department Crook County is still heavily dependent on lumber and wood products manufacturing, which accounted for 24 percent of the nonfarm employment in 2002. In the nonmanufacturing sector, trade and government employment together make up about 48 percent of nonfarm payroll employment in the county. Based on numbers of jobs within private sector industries, secondary wood products leads Crook County, with the distribution and warehouse industry ranking second. Service, retail trade, small manufacturing, construction, and tourism industries are all well represented in Deschutes County. Even lumber and wood products, which has been declining for over a decade, still makes up about 39 percent of manufacturing in the county. Based on numbers of jobs, tourism leads all other private sector industries by a wide margin. Lumber and wood products, as well as a growing transportation equipment industry, make up the bulk of Jefferson County's manufacturing sector. Trade and government employment lead the nonmanufacturing sector, with government employment being heavily influenced by tribal employment, which accounts for over 40 percent V total government employment in the county. Manufacturing and fabrication are the leading private sector industries based on numbers of jobs. Central Oregon Intergovernmental Council Page 12 Crook Count Total Em to men Distribution & Warehouse 950 ""5oci�l"''• Tourism 424 It Deschutes Count Health & Social Service 5 569 Secondary Wood Products 1,643 Recreational Equipment 800 Jefferson County b Primary, Secondary Wood Prod. 1,200 a Agriculture/Forestry/Fishing 371 Source: Central Oregon Area Profile 2003, EDCO Service, retail trade, small manufacturing, construction, and tourism industries are all well represented in Deschutes County. Even lumber and wood products, which has been declining for over a decade, still makes up about 39 percent of manufacturing in the county. Based on numbers of jobs, tourism leads all other private sector industries by a wide margin. Lumber and wood products, as well as a growing transportation equipment industry, make up the bulk of Jefferson County's manufacturing sector. Trade and government employment lead the nonmanufacturing sector, with government employment being heavily influenced by tribal employment, which accounts for over 40 percent V total government employment in the county. Manufacturing and fabrication are the leading private sector industries based on numbers of jobs. Central Oregon Intergovernmental Council Page 12 Central Oregon Community Investment Strategy Following is a list of the largest private sector employers in the region, based on numbers of Jobs: 1.4 Housing and Residential Construction Central Oregon's rapid growth has been a boon for the real estate industry, but a slowing economy, increasing housing prices (for land and construction), and recent concerns about infrastructure capacity are influencing the makeup of the housing landscape. Analysts predict that despite rising prices, the geography and climate of Central Oregon plus the flexibility associated with technology -oriented jobs (which allow people to live and work from anywhere), will continue to bring more people to Central Oregon. Residential Home Prices Home Prices $1 2003 Central Oregon Area Profile, EDCO Central Oregon Intergovernmental Council Page 13 Employer County # of Employees s tii Bright Wood Corporation Desch, Jefferson 1,392 iSKY Deschutes 850 uDO rt utas Mt. Bachelor, Inc. Deschutes 800 Beaver Motor Coaches Deschutes 575 Glean Pozzi Window Com an Deschutes 500 Wal Mart Deschutes 450 Fred Me er Deschutes 424 �:entral�Uregon- � ri � ` ute� E3 American Pine Products Crook 365 The Lancair Com an Deschutes 325 ,uahMEMEW . Kah-Nee-Tah Jefferson 269 Bend Millwork Com an Deschutes 232 Seaswid Boats Jefferson 220 ource: Central Oregon Area Profile 2003, EDCO 1.4 Housing and Residential Construction Central Oregon's rapid growth has been a boon for the real estate industry, but a slowing economy, increasing housing prices (for land and construction), and recent concerns about infrastructure capacity are influencing the makeup of the housing landscape. Analysts predict that despite rising prices, the geography and climate of Central Oregon plus the flexibility associated with technology -oriented jobs (which allow people to live and work from anywhere), will continue to bring more people to Central Oregon. Residential Home Prices Home Prices $1 2003 Central Oregon Area Profile, EDCO Central Oregon Intergovernmental Council Page 13 Central Oregon Community Investment Strategy Deschutes County continues to be the most expensive place in the region to purchase a new house, primarily because of the City of Bend and the upscale communities of Sunriver and Sisters. The average sales price for a residential house in Bend in 2002 was $225,866, up 13% from two years ago. Redmond has an average sales price of $147,515, up 16% from 2000. Crook County has an average price of $104,633. Jefferson County is the only location that has seen average sales price drop, from $91,108 in 2000 to $90,818 in 2002. _w ... W ..,......v ;£fro6 1 "1 Home Ownershi Rates 2000 Source: 2000 US Census Rental Vacancy Rates, 2003 Average Source: Central Oregon Rental Survey, Central Oregon Regional Housing Authority Percent of Renters spending more than 30% of their Income on Housing Percent 22% 30% 27% 291/0 Source: Central Oregon Rental Survey, Central Oregon Regional Housing Authority Number of Building Permits Issues 19RM 2000 205 2,099 209 N/A =0:Centerfor Population Research, 2000 Census Residential housing construction, including single-family, multi family, and manufactured homes, has fluctuated in volume over the past several years. Crook County experienced a substantial increase in the number of building permits issued in 2000, after decreasing 13% in the previous year. In both Jefferson and Deschutes counties, the increase in the number of building permits issued was strong in 1998 (28% and 9%, respectively) but slowed considerably in 1999 and 2000. Jefferson County had the second consecutive year of decreases in the number of building permits issued in 2002. Central Oregon Intergovernmental Council Page 14 Central Oregon Community Investment Strategy 1.5 Infrastructure — Water and Sewer Rapid regional growth has impacted water and sewer infrastructures. Several jurisdictions are working to improve water storage capacity, and to improve the capacity of existing wastewater anu sewer Provider City of Bend Source: Bridge Creek (11.7 mgd.), Six groundwater wells (24.7 mgd.). 22 million qallons of resevoir storaqe capacity. City of Redmond Source: Groundwater. Five wells (11.5 mgd.). Three resevoirs - 5 million Terrebonne Water District Source: Groundwater. Three wells - 2,500 gallons per minute capacity. Two resevoirs - 750.000 qallon capacity. Deschutes Valley Water District - Service Source: Groundwater (Opal Springs) area: Madras, Culver, Metolius Confederated Tribes of W.S. Three supply and distribution systems. Source: Groundwater, Deschutes River Water rates for commercial and industrial users in Central Oregon are generally fairly low, particularly compared to Portland. The Department of Environmental Quality (DEQ) regulates approximately 19 municipal wastewater sewage treatment plans in Central Oregon and sets limits on pollutants discharged in the State of Oregon. With the exception of the City of Prineville and Ochoco West Sanitary District, none of these plans discharge into streams or rivers. Wastewater systems in the Central Oregon region cannot handle heavy metals or other users with high levels of suspended solids. Central Oregon Intergovernmental Council Page 15 Central Oregon Community Investment Strategy 1.6 Infrastructure - Roads and Road Conditions Looking at the major transportation corridors of the region, Central Oregon is served by five highways: US Highways 20, 26, 97, and Oregon State Highways 126 and 27. The Oregon Department of Transportation identifies three factors when determining the "health" or condition of a maintained road. These factors are pavement condition, congestion, and safet}'. Traffic congestion can be defined as the level at which transportation system performance is no longer acceptable due to traffic interference. According to a 1996 Oregon Population Survey prepared by the Oregon Department of Transportation, traffic congestion is perceived to be as critical of a problem in Central Oregon as in the Portland area. Based on the way congestion is measured, all highway segments that are either over capacity (congested) or at capacity (nearing congestion) are found inside the cities of Bend, Madras, Prineville, and Sisters. a �$�Y'. Perceri a � r�= ' nn . i nr► .� G era sr►� vuri#y� tats iiia 2002 14% 6.98% 54.45% 27.17% 0• � . o � Source: Crook, Deschutes and Jefferson Counties, COOT Traffic volumes are projected to continue to gradually increase throughout the region. At the present rate of growth with no improvements, the existing congested areas will become worse and the areas currently at capacity will become congested. Safety is projected to remain a significant issue in the corridor. Improvements would most significantly reduce the number of high accident locations. 1.7 Infrastructure - Solid Waste There are three landfills and six transfer stations used for the disposal of solid waste in Central Oregon. The Crook County Landfill permit will expire in 2007 and it serves all of Jefferson and Crook County residents. The Knott Pit Landfill, serving Deschutes County, is projected to remain open until 2029. The remaining. landfill in Central Oregon is on the Warm Springs Reservation, and they are in the process of developing a new landfill site along with establishing three sites with bins for solid waste and various recycled materials. All jurisdictions with hauling services contract privately. Hauling services, with the option to self -haul, are provided ' Source: Interim Corridor Strategy for the Sisters to Ontario Corridor, ODOT. November, 1997. Central Oregon Intergovernmental Council Page 16 Central Oregon Community Investment Strategy A recycling program is required by the State for cities with populations over 4,000. In Central Oregon the cities of Bend, Redmond, Sisters and Prineville offer curbside recycling, whereas other populated areas offer recycling at unmanned recycling depots or at transfer stations located in or near their community. 1.8 Infrastructure - Electricity At an average rate of $0.045-$0.05 per kilowatt hour (kWh), Pacific Power, Midstate Electric Co -Op, and Central Electric Co -Op provide Central Oregon with low utility rates compared to larger jurisdictions or cities. In the future there are no foreseeable issues with providing power to properly zoned Central Oregonians. 1.9 Infrastructure - Natural Gas Natural gas is widely available throughout the region and is supplied by Cascade Natural Gas Corporation. Rates are based on therms, which equal 100,000 BTUs, or 100 cubic feet. Rates are as follows: Commercial: $0.75998 per therm Industrial: $0.72047 per therms 1.10 Infrastructure - Telecommunications Central Oregon's telecommunications network has improved dramatically over the past three years due to improvements to Qwest's network, and increasing numbers of facility based telecommunications providers now serving the region. Following is a summary of improvements that to Central Oregon's network since 2000: Cascade Fiber Optic Ring: Construction of the "Cascade Fiber Optic Ring" was completed in late November 2002, providing a second Qwest fiber. optic route into and out of the region. With voice and data traffic in the area moved onto the self healing Cascade Fiber Optic Ring, Central Oregon's top phone and internet need has been met. Prior to the completion of the Cascade Fiber Ring, Central Oregon communities were connected to the rest of the world through one fiber optic line. That line runs from Portland through Madras, Redmond, Bend and La Pine — and previously ended near Gilchrist. Qwest extended the line south, then crossed Highway 58 (Willamette Pass) to connect to Qwest fiber that links Oakridge to Eugene and back up to Portland. The Cascade Ring uses Synchronous Optical Network (SONET) technology, which allows all communications to be seamlessly re-routed in the event of a fiber optic cut or disruption. Alternate Fiber Providers: Prior to 2000, Qwest provided the only accessible fiber optic route linking Central Oregon to other parts of the state. Communications customers and competitive providers relied on Qwest for nearly all connectivity to the Willamette Valley, Internet, and the rest of the world and were subject to Qwest tariffed rates. With the emergence of Quantum Communications as a local partner of the Northwest Open Access Network, Central Oregon now 1 Source: Economic Development for Central Oregon Central Oregon Intergovernmental Council Page 17 Central Oregon Community Investment Strategy has a second fiber optic based telecommunications provider, resulting in diverse routing and competitive pricing for services. Broadband Cable, DSL: Qwest has deployed DSL services within 15 Central Oregon communities. Qwest competitors also provide DSL services within the region in nearly all communities. Crestview Cable and Bend Broadband serve most communities, and continue to expand and improve their networks. Pricing fo r broadband services within Central Oregon is comparable to other areas of the state. 1.11 Transportation — Public Transportation With the rapid growth of the region has come increasing traffic for passenger, freight and airport systems. Significant time and resources are now being spent trying to alleviate or manage this traffic. In addition to the obvious correlation that more people generally means more cars, Central Oregon is finding that people are also spending more time in their cars. Alternative transportation is not widely available. Intercity passenger transportation is available from a number of private providers including: CAC, Greyhound, Porter Stage Lines, Valley Retriever, and People Mover. Currently, one or more of these transportation services make stops in every jurisdiction, with the exception of Culver and Metolius. There also exists a network of special transportation providers that serve specific populations, mostly the elderly and disabled. In most cases, the general public does not have access to these special transportation services. Volunteer services are able to meet some of the needs not met by paratransit and intercity providers. Examples of special transport providers are Dial -A -Ride, Opportunity Foundation, and Community Partnership Team. In addition to current intercity transit services a new Thruway Motorcoach project will connect Central Oregonians with existing Amtrak stations. Public transportation is of growing importance to the region because of population growth and the aging of the population. Slightly less than one-fifth of the population in Central Oregon is 60 years or more, with the highest percentage in Deschutes County. Public mass transit is currently driven by local choice. However, the City of Bend has become a designated Metropolitan Statistical Area (MSA), mandating evaluation and possible expansion of the current demand - response program. Bend's Dial A -Ride program provides rides to the general public as well as senior and disabled community members. The City of Bend expanded Diala-Ride in January of 2002, opening the existing service to the general public. The first year of general public service, DialA-Ride transported 88,738 passengers. 1.12 Transportation - Air Central Oregon has four general aviation airports. These are located in Bend, Madras, Prineville, and Sunriver. In addition the Sisters Eagle Air Airport is privately owned but open for public Central Oregon Intergovernmental Council Page 18 Central Oregon Community Investment Strategy use. The Roberts Field- Redmond Municipal Airport remains the only commercial airport with regularly scheduled passenger service in Central Oregon. By air, Portland is 40 minutes away, Seattle only 90 minutes away and daily flights to San Francisco are available. Connecting flights to all major destinations are available through Portland and Seattle. Table 16: Source: Redmond Municipal Airport, 2003 1.13 Transportation - Freight Highway 97 serves as the major truck route throughout the region and an interstate alternative for many truck drivers. There are a number of local and regional trucking companies as well as transport brokers that serve the region. Capabilities include local and long distance hauling for flatbed service dry bulk, liquid bulk, and general commodities. There are also several carriers that specialize in Less Than Load (LTL) service. Some of this capability is the result of the traditional economy of the region, primary wood products, which is a fairly transportation intensive industry. 1.14 Transportation - Rail Burlington Northern Santa Fe (BNSF), Union Pacific, and the City of Prineville Railway provide direct rail connections for shipping to any market in the United States, Canada or Mexico. Connections are found in Bend, Redmond and Prineville Junction, which is east of Prineville. 1.15 Transportation - Ports Central Oregon businesses have access to regional ports and international markets along the Pacific Coast. Primarily, the Port of Portland serves the area. SECTION 2. Human Resources 2.1 Poverty An estimated 16,610 persons in Central Oregon lived in poverty in 2000. Of those persons living in poverty, approximately 6,148, or 37%, were children under the age of eighteen. The percentage of children under the age of 18 in poverty declined from 1989 to 1995, but has increased since 1995 in all three counties. The percent of persons in poverty is lower in Deschutes County than the statewide average while Crook County is slightly above the state average. Jefferson County has a substantially higher poverty rate than the State and the other two counties in the Central Oregon region. Central Oregon Intergovernmental Council Page 19 Central Oregon Community Investment Strategy 2.2 Health Care For a community its size, Central Oregon is fortunate to have a very high quality of medical care. Anchored by the presence of St Charles Medical Center (which through its partnership with Air Life serves many of the critical care needs of the entire Eastern part of the state), Bend Memorial Clinic and Central Oregon Community Hospital in Redmond, there exists in the region a "critical mass" of health care professionals. Additional major medical facilities include East Cascades Women's Group and Central Oregon Pediatrics in Bend, Kingwood Medical Clinic and Mountain Medical Associates in Redmond, Pioneer Memorial Hospital in Prineville, and Mountain View District Hospital in Madras. In addition, each of the three counties have local public health departments which provide a wide range of preventive and educational services. Health services are also offered through the Department of Human Services and Indian Health Services at the Confederated Tribes of Warm Springs. La Pine has the federal designation of being a Medically Underserved Area. This designation includes south Deschutes, north Klamath and north Lake counties and is thought to cover a permanent service area population of approximately 25,000. For many, the primary issue around health care is affordability. Many of the region's jobs do not come with health benefits or require substantial out-of-pocket costs. Survey data from the Central Oregon Population Survey (1998-99) sponsored by the Oregon Progress Board indicates that between 10 and 13% of Central Oregonians are not covered by a health insurance Strategy. For some, the issue is lack of access to health care due to transportation barriers. Many residents, particularly those who are elderly or have a disability, are unable to make or keep appointments. Central Oregon Intergovernmental Council Page 20 1989 1,466 7,723 2,271 353,222 1995 1,934 10,508 2,819 399,899 1998 2,370 12,526 2,897 400,952 Percent of Population in Poverty 1995 11.5% 10.6% 17.3% 12.5% 1998 13.3% 11.2% 17.2% 12.1% Children Under 18 in Poverty 1995 632 3 527 1,087 134,378 1998 825 4,429 1,158 141,997 Percent of Children Under 18 in Povert 1995 14.0% 13.9% 21.8% 16.4% 1998 17.5% 15.6% 23.7% 16.9% overty Statistics Source: 2000 US Census 2.2 Health Care For a community its size, Central Oregon is fortunate to have a very high quality of medical care. Anchored by the presence of St Charles Medical Center (which through its partnership with Air Life serves many of the critical care needs of the entire Eastern part of the state), Bend Memorial Clinic and Central Oregon Community Hospital in Redmond, there exists in the region a "critical mass" of health care professionals. Additional major medical facilities include East Cascades Women's Group and Central Oregon Pediatrics in Bend, Kingwood Medical Clinic and Mountain Medical Associates in Redmond, Pioneer Memorial Hospital in Prineville, and Mountain View District Hospital in Madras. In addition, each of the three counties have local public health departments which provide a wide range of preventive and educational services. Health services are also offered through the Department of Human Services and Indian Health Services at the Confederated Tribes of Warm Springs. La Pine has the federal designation of being a Medically Underserved Area. This designation includes south Deschutes, north Klamath and north Lake counties and is thought to cover a permanent service area population of approximately 25,000. For many, the primary issue around health care is affordability. Many of the region's jobs do not come with health benefits or require substantial out-of-pocket costs. Survey data from the Central Oregon Population Survey (1998-99) sponsored by the Oregon Progress Board indicates that between 10 and 13% of Central Oregonians are not covered by a health insurance Strategy. For some, the issue is lack of access to health care due to transportation barriers. Many residents, particularly those who are elderly or have a disability, are unable to make or keep appointments. Central Oregon Intergovernmental Council Page 20 Central Oregon Community Investment Strategy Looking at particular statistics that relate to health, regional rates for teen pregnancy have dropped dramatically since 1996. Most significantly, Jefferson County's rate dropped from 32.9 per 1,000 females age 10-17 in 1998 to 15.9 in 2002. Crook and Deschutes are below the state teen pregnancy 3 -year average of 12.5 per 1,000 females. In regard to children abused or neglected, only Deschutes County is below the state 3 -year average. Health trends identified in the Confederated Tribes of Warm Springs' Comprehensive Strategy include the increasing prevalence of diabetes among all age groups, increasing population growth, an increasing number of individuals choosing substance -free lifestyles, an increase in the local availability of health service providers on the reservation, and an increase in the prevalence of tooth decay in children. Decreasing trends identified by the Tribes include lower levels of tribal fiscal appropriations, an unhealthy dependence on social services, decreasing infant mortality rates, decreasing numbers of fetal alcohol syndrome births, decreasing birth rates, and fewer out -of -home placements for children. 2.3 Education Central Oregon's education system has seen improvement since 2000, from the opening of Central Oregon Community College's Applied Technology Center in Redmond in the fall of 2000, to the establishment of a branch campus of Oregon State University during the same time, which provides opportunity to acquire four-year and graduate degrees locally. Most impressive has been the emphasis on partnering between business, education, and public and private agencies in meeting work force training needs. However, population growth will continue to present a challenge for Central Oregon communities as they strive to increase and diversify the available job opportunities in the region. Central Oregon Intergovernmental Council Page 21 s. Teen Pregnancy Rates per 1,000 Females (aged 10 to 17) 1998 17.1 14.5 32.9 2002 7.8 8.8 15.9 12.5 (3 year avg.) Children Abused or Neglected er 1 000 Persons under 18 ;ggOEM 1998 9.8 10.9 17.2 2002 12.6 9.4 N/A 10.5 (3 year avg.) ource: 2003 County Data Book, Oregon Progress Board Health trends identified in the Confederated Tribes of Warm Springs' Comprehensive Strategy include the increasing prevalence of diabetes among all age groups, increasing population growth, an increasing number of individuals choosing substance -free lifestyles, an increase in the local availability of health service providers on the reservation, and an increase in the prevalence of tooth decay in children. Decreasing trends identified by the Tribes include lower levels of tribal fiscal appropriations, an unhealthy dependence on social services, decreasing infant mortality rates, decreasing numbers of fetal alcohol syndrome births, decreasing birth rates, and fewer out -of -home placements for children. 2.3 Education Central Oregon's education system has seen improvement since 2000, from the opening of Central Oregon Community College's Applied Technology Center in Redmond in the fall of 2000, to the establishment of a branch campus of Oregon State University during the same time, which provides opportunity to acquire four-year and graduate degrees locally. Most impressive has been the emphasis on partnering between business, education, and public and private agencies in meeting work force training needs. However, population growth will continue to present a challenge for Central Oregon communities as they strive to increase and diversify the available job opportunities in the region. Central Oregon Intergovernmental Council Page 21 Central Oregon Community Investment Strategy Central Oregon Community College provides a wide variety of services to students and businesses throughout Central Oregon including courses, certificates and degrees in professional technical programs leading to family -wage job opportunities, as well as the university transfer program that provides the complete first two years of a bachelor's degree. In addition, COCC serves area residents with Adult Basic Education and GED certification; courses specifically designed for area business and their employees; and community education opportunities in topics ranging from computer basics to modern dance to educational travel. The college has a main campus in Bend and an expanding North Campus in Redmond, which is the home of the Manufacturing and Applied Technology Center. In addition, College Centers provide opportunities for students residing within other communities to register for most COCC classes and take part in the College's Open Campus program that brings a series of televised credit classes to the Centers from the main campus. Overall, COCC serves more than 17,000 area residents each year. Oregon State University established a branch campus in partnership with Central Oregon Community College and seven collaborating higher education institutions, providing the first 4 - year education institution to locate in Central Oregon. The OSU Cascades Campus offers a wide range of options to pursue a certificate, undergraduate degree, or advanced degree. Interdisciplinary programs in liberal arts, business, education, engineering, and the sciences will be available on-site, or students can study via the Web, video, interactive TV, or through independent study. The Cascades Campus is currently located on the COCC campus, but funding has been secured to build a new higher education building in Central Oregon. Central Oregon Intergovernmental Council Page 22 Central Oregon Community Investment Strategy are served by Crook County School District. There are ten private schools in the Central Oregon region. 2.4 Quality of Life Maintaining a healthy and sustainable quality of life is an important concern to businesses and residents of Central Oregon. A reasonable cost of living, personal security, a healthy physical environment, and recreational/cultural/historical amenities are a few of the key concerns when considering what defines quality of life in our region. The overall cost of living in Central Oregon is less or equal to other popular relocation areas. Cost of living data is only available for Bend and Redmond — see Table 15. Other Central Oregon communities have lower costs of living due to lower housing costs. Table 21: Cost of Living Bend Redmond Eugene Portland 100= US average Source: www.homefair.com A sense of physical security affects both people and businesses. The following table shows overall reported crimes per 1,000 persons. Total crimes are a sum of crimes against property, persons, and behavioral crimes. As a region the numbers indicate crime rates are declining from previous years. In addition, Deschutes and Jefferson County crime rates were lower than the statewiae average in /-uu/-. Central Oregon is alive with arts and cultural events. Highlights include the Cascade Festival of Music, the Central Oregon Symphony, the High Desert Museum, the Museum at Warm Springs and several community theater groups. The Central Oregon Arts Association, one of thirteen registered art associations in the state, recently organized a "Central Oregon Arts Resource Guide" which lists hundreds of festivals, businesses, museums, artists, and organizations involved with arts and culture in Central Oregon. The fact that Central Oregon is also a popular tourist destination helps to support a higher level of cultural activity as well as restaurants and shopping opportunities, which benefit local residents and visitors alike. Recreation is a key attraction throughout Central Oregon. Outdoor recreation includes: cross country and downhill skiing, mountaineering, golfing, countless mountain bike and hiking trails, fishing, boating, water-skiing, as well as world class rock climbing. Federal and State agencies manage over half of the region's land. These areas include: Deschutes and Ochoco National Forest, Crooked River National Grassland, Mt. Jefferson Wilderness, Mount Washington Wilderness, Three Sisters Wilderness, Newberry Crater State Park, Mill Creek Wilderness, Tumalo State Park, and Smith Rock State Park, all of which include scenic and historic points of interest. Central Oregon Intergovernmental Council Page 23 Crimes er 1,000 0 3. Crook Deschutes Jefferson Ore ion 1998 146.3 127.3 144 2002 129.4 120.7 107.4 126.9 3 ear av . ........, coona _. M ...> Central Oregon is alive with arts and cultural events. Highlights include the Cascade Festival of Music, the Central Oregon Symphony, the High Desert Museum, the Museum at Warm Springs and several community theater groups. The Central Oregon Arts Association, one of thirteen registered art associations in the state, recently organized a "Central Oregon Arts Resource Guide" which lists hundreds of festivals, businesses, museums, artists, and organizations involved with arts and culture in Central Oregon. The fact that Central Oregon is also a popular tourist destination helps to support a higher level of cultural activity as well as restaurants and shopping opportunities, which benefit local residents and visitors alike. Recreation is a key attraction throughout Central Oregon. Outdoor recreation includes: cross country and downhill skiing, mountaineering, golfing, countless mountain bike and hiking trails, fishing, boating, water-skiing, as well as world class rock climbing. Federal and State agencies manage over half of the region's land. These areas include: Deschutes and Ochoco National Forest, Crooked River National Grassland, Mt. Jefferson Wilderness, Mount Washington Wilderness, Three Sisters Wilderness, Newberry Crater State Park, Mill Creek Wilderness, Tumalo State Park, and Smith Rock State Park, all of which include scenic and historic points of interest. Central Oregon Intergovernmental Council Page 23 Central Oregon Community Investment Strategy SECTION 3. Natural Resources Key indicators of a healthy, productive, economically inviting region depend on the current and future condition of Central Oregon's air, water, forests, grasslands, agricultural lands, and biodiversity. Biodiversity is defined as the variety of plants and animals found within the region. Overall, there is a tremendous amount of research and planning activity on local, state and federal levels regarding environmental and natural resource issues. In order to protect and maintain the health of the environment, community and economic developers in Central Oregon should include natural resource managers, including private land holders, when making development decisions. This section highlights the current situation of each indicator, and begins to address current concerns as well. Central Oregon lies in the geographic center of the state. Topographical and climatic features vary from high desert valley to rugged mountain peaks. Annual precipitation ranges from five to six inches in the lower elevations to as much as eighty inches on the west side of the Cascade Range. The soils are primarily of volcanic origin. Over 2.7 million acres of private, state, and federal lands within the Central Oregon region are considered forest land. This comprises 55% of the total land within the region. The primary types of cover include: ponderosa pine, western juniper, douglas fir, lodgepole pine, and true fir. The region has three river drainages: the Crooked, the Deschutes, and the Metolius, which are encompassed within the Upper and Middle Deschutes river basin. The region consists of 7.787 sauare miles (4.983.680 acres). Land USFS Land as a % of Total 3.1 Air Quality Both federal and state government establish air quality standards for various pollutants, and may impose strict and costly control measures for communities that exceed the standards. Because of successful air pollution prevention programs and public support of them, 100 percent of Oregonians currently live where the air meets national health standards. That's a dramatic change from 1980 when only 30 percent of Oregonians lived in clean air areas. However, population and economic growth present constant challenges to maintaining healthy air in the state. The air pollutants of greatest concern in Oregon ares: • ground -level ozone, commonly known as smog • carbon monoxide (mostly from motor vehicles) • fine particulate matter (mostly from wood smoke and dust) • Toxic Air Pollutants 1 Source: Oregon Department of Environmental Quality, website. http://www.deq.state.or.us/aq/aq.htm Central Oregon Intergovernmental Council Page 24 Central Oregon Community Investment Strategy Central Oregon is experiencing the same victories and challenges as the rest of the state. Specific areas of concern are: mobile and fixed sources of pollution, agricultural and slash burning, winter wood smoke, and development projects. Increased auto and truck traffic in Central Oregon also contribute to pollution. Wood stove emissions and dust emissions from roadways are the largest source of particulate air pollution in Central Oregon. Industrial point sources are also identified as producing air pollutants at a fixed or portable source in a large operation such as a sawmill or gravel pit. Both carbon monoxide and particulate matter monitors were set uD in tsena. Activities such as wood smoke from fireplaces and cindering the roadways impacts air quality in the more densely populated regions of Central Oregon. It's a common myth that industry is the major contributor to air pollution, but the truth is smoke from fireplaces and woodstoves is one of the largest threats to healthful air in Oregon. Wood smoke is a serious problem in many Oregon communities. Woodstove smoke contains tiny particles that can become trapped in your lungs. These small particles (less than ten microns) are referred to as "PM10" pollution. In addition, cinders from sanding icy roads contribute to PM10 concerns. In Redmond and Bend the City Public Works and the Department of Transportation are working hard to limit the amount of cinders placed on roads as well as to promptly sweep them up after use. In less densely populated areas, particulates from unpaved roads contribute to PM 10 concerns. The DEQ monitors daily PM10 particulate levels in Bend. The arithmetic mean average for particulate levels in 1998 was 22.8, 1999 was 25.5, 2000 was 27.4, and 2002 was 21.5. The general trend has been one of improvement over the past ten years — the average in 1993 was 36.12. Another activity that occurs in more densely populated areas of Central Oregon is new housing or industrial developments. When they begin, there is a decrease in air quality at or near the site. Grading and burning are two of the main causes of residential complaints from these projects3. 3.2 Water Quality and Quantity The Department of Environmental Quality (DEQ) is the state agency responsible for protecting Oregon's public water for a wide range of uses. DEQ sets water quality standards to protect "beneficial uses" including domestic, municipal, irrigation, power development, industrial, 2 Source: Oregon Department of Environmental Quality 1999-2000 Air Quality Annual Report 3 Source: Oregon Department of Environmental Quality, interview. Peter Brewer, Bend. Central Oregon Intergovernmental Council Page 25 Central Oregon Community Investment Strategy mining, recreation, wildlife, and fish life uses and pollution abatement. DEQ monitors water quality with regular sampling of more than 50 rivers and streams in the 18 designated river basins found in Oregon. There are 5 designated sub -basins in the region. Primary areas of concern for Central Oregon are riparian restoration, flow of streams and rivers, noxious weed removal, and water temperature. In addition, water management to minimize nutrients and ensure they are under the maximum loads as determined by DEQ is important in this region. DEQ is required by the federal Clean Water Act to maintain a list of stream segments that do not meet water quality standards. This list is called the 303(d) List because of the section of the Clean Water Act that makes the requirement. The U.S. Environmental Protection Agency has approved DEQ's 2000 list. The list for the entire Deschutes Basin is extensive and can be viewed at: http://deq.state.or.us/ In regard to water quality, one evaluative factor used by the DEQ has been charting aggregate trends related to overall water quality. The DEQ monitors 133 river and stream sites in Oregon, and publishes a ranking of monitored sites within the Water Quality Assessment Report. Following is a tab le of Deschutes Basin monitoring sites, with their overall designation: 3.3 National Forests and Grasslands There are two National Forests and one National Grassland in Central Oregon. The Deschutes National Forest lies mostly in Deschutes County but extends into Jefferson, Klamath and Lake counties as well. Within the Forest boundary there are over 1.85 million acres, of which 1.6 million acres are National Forest lands. The Ochoco National Forest lies in Crook and Harney counties and contains 845,498 acres of land. In addition, the Ochoco National Forest administers the Crooked River National Grasslands, located in Jefferson County. The 173,629 acre Crooked River National Grasslands is comprised of 111,379 acres administered by the Ochoco National Forest with the remainder being owned by the Bureau of Land Management, the State of Oregon, Jefferson County, or by private partiesl. Demands on the forest include recreation, timber, fuel wood, forage, and wildlife, such as mule deer for hunting. These demands as well as issues such as bug kill, fuels reduction, and urban interface, or fire protection and forest management on boundaries between public and private lands, are setting the direction of forest management practices in Central Oregon. I Source: Land and Resource Management Strategy, Deschutes National Forest. 1990 Central Oregon Intergovernmental Council Page 26 Monitorin Site Rankin Trend Little Deschutes R. at H 42 Excellent Insufficient Data Deschutes R. at Sunriver Excellent Increase in Quali Deschutes R. at Warm Springs Good No Change � f`h Crooked R. at Conant Basin Rd. Poor Increase in Quality ource: 2000 Water Quality Assessment, DEQ 3.3 National Forests and Grasslands There are two National Forests and one National Grassland in Central Oregon. The Deschutes National Forest lies mostly in Deschutes County but extends into Jefferson, Klamath and Lake counties as well. Within the Forest boundary there are over 1.85 million acres, of which 1.6 million acres are National Forest lands. The Ochoco National Forest lies in Crook and Harney counties and contains 845,498 acres of land. In addition, the Ochoco National Forest administers the Crooked River National Grasslands, located in Jefferson County. The 173,629 acre Crooked River National Grasslands is comprised of 111,379 acres administered by the Ochoco National Forest with the remainder being owned by the Bureau of Land Management, the State of Oregon, Jefferson County, or by private partiesl. Demands on the forest include recreation, timber, fuel wood, forage, and wildlife, such as mule deer for hunting. These demands as well as issues such as bug kill, fuels reduction, and urban interface, or fire protection and forest management on boundaries between public and private lands, are setting the direction of forest management practices in Central Oregon. I Source: Land and Resource Management Strategy, Deschutes National Forest. 1990 Central Oregon Intergovernmental Council Page 26 Central Oregon Community Investment Strategy Ochoco National Forest Deschutes National Forest 2002 1,582.5 2,484.7 ource: US Census of Agriculture In addition to the public lands managed by the National Forest Service (NFS), the Prineville District of the Bureau of Land Management controls oyer 1.65 million acres of public lands. These lands are scattered throughout north central Oregon, south from The Dalles to the high desert, west to Sisters, and east to the Grant/Harney County line. The Crooked, Deschutes, White and John Day Rivers make up over 385 miles of wild and scenic river in the District. Currently the BLM is updating the Brothers/La Pine Regional Management Strategy, that was last published in 1989. Covered in this Strategy are demands and trends relating to land tenure, forestlands and woodlands, recreation, wild horses, grazing, riparian and fish habitat, energy, and minerals. 3.4 Wildfire Risk Wildfire risk remains a critical issue within Central Oregon, as major fires in 2002 and 2003 burned through nearby forests and destroyed homes. Beginning in the late 1980s and early 1990s, a combination of wildfire fuel accumulation, droughts, and expanding rural development caused wildfires in Central Oregon to strike more often and with more destructive power than in decades past. In 2000, officials at the Central Oregon Intergovernmental Council (COIC) decided that Central Oregon's forest sector industries, which had been shrinking for more than a decade, should be harnessed to remove small diameter wildfire fuels, restore forests, and retain valuable jobs for the region's rural, resource -dependent communities. In August of 2001, COIC received a National Fire Plan grant to develop a strategy for increasing wildfire fuel removals and utilization in Central Oregon. Beyond simply addressing these issues on a technical basis, the COIC grant application committed the organization to work with a broad coalition of Central Oregon stakeholders in order to develop local capacity to implement the strategy. Central Oregon Partnerships for Wildfire Risk Reduction (COPWRR) is a stakeholder collaborative aimed at reducing wildfire risk, enhancing ecosystem health, and providing community jobs and income in Central Oregon. COPWRR, founded in November, 2001, is guided by a stakeholder Advisory Council and is staffed by the Central Oregon Intergovernmental Council. The first product of the COPWRR project was the COPWRR Strategy Framework (Dec. 2002), which outlines 64 recommendations for achieving project objectives. Central Oregon Intergovernmental Council Page 27 Central Oregon Community Investment Strategy Table 27- Wildfire Risk Wildland-Urban Interface - Number of Acres t iiftcME d ODF-defined area to be ected rot 200,416 4 % 4. 5 Total 872,068 Ownership in the Wildland-Urban Interface & 1.5 Mile Buffer Acres Percent p ' a Bureau of Land Mana ement 132 066 15.10% n ruab' State Lands 1,555 <1% c• suhtntal• All Puhlic Lands 365,341 41.90% Unknown 458 <1% Source: COPWWR Strategy Framework 2002 3.5 Agricultural Lands Approximately 1.8 million acres of Central Oregon's land is utilized for farms. This comprises 37% of the total acreage within the three -county area. About 70% of the farm acreage in the region is irrigated land. There are 2,155 farms in Crook, Deschutes and Jefferson Counties. Most of these farms (60%) are small farms of 49 acres or less. The total market value of agricultural products sold in Central Oregon in 1997 was $96 million. The agricultural industry provides a significant number of jobs, supports a variety of businesses and maintains open space in the Central Oregon region. Agricultural land also provides wildlife habitat and food. Central Oregon Intergovernmental Council Page 28 Central Oregon Community Investment Strategy 3.6 Biodiversity The last environmental indicator of a healthy and prospering community reviewed here is biodiversity. There are numerous public and private organizations working on researching and maintaining biodiversity in Central Oregon. Two major projects are described here. The first project is the Oregon Wildlife Diversity Strategy, designed to conserve the diversity of fish and wildlife species in the state. The Strategy is a blueprint for addressing the needs of Oregon's native fishes, amphibians, reptiles, bird and mammals, and contains information on all species and habitats in the state. The Strategy was first adopted in 1986, and was updated in November 1993 and again in January 1999. This Strategy sets forth the goals, objectives, strategies, sub -strategies, and program priorities for the Oregon Department of Fish and Wildlife's Wildlife Diversity (formerly Nongame) Program. In addition to being a policy document to guide the actions of the Oregon Department of Fish and Wildlife, the Oregon Wildlife Diversity Strategy' is also a reference document containing: • biological information on all fish and wildlife species in the state • habitat information, organized by Oregon's 10 physiographic provinces • summaries of state and federal laws and programs affecting fish and wildlife and their habitats • lists of endangered, threatened and sensitive species • the official Oregon list of Neotropical Migratory Birds The second project is the Oregon Biodiversity Project, whichexamined biodiversity conservation needs at a statewide scale. The Oregon Biodiversity Project was a true collaboration. More than 50 cooperators contributed funding, personnel time, facilities, equipment, and other resources to the project. Contributors include: Chevron Corporation, Environmental Protection Agency, National Fish and Wildlife Foundation, Oregon Department of Fish and Wildlife, The Nature Conservancy of Oregon, and U.S. Fish and Wildlife Service. Natural resource policy in Oregon has been driven by single -species management issues in recent years. First it was the spotted owl, then the marbled murrelet, followed by salmon and steelhead, and more recently, bull trout. All are emblematic of broader problems that jeopardize the health of our natural systems and the human communities that depend on them. The best way to avoid future endangered species listings is to address conservation needs before they reach the crisis stage — while populations still retain some of their natural resiliency, and land managers still have some flexibility in responding to habitat conservation needs. Local government should play a key role in the development of management plans for current and future endangered or threatened species. Without local government involvement in the process, local issues and concerns cannot be adequately addressed. Three vegetation types in Central Oregon stand out as conservation priorities based on an assessment of historic changes and current management status. Ponderosa pine woodlands have declined by at least two-thirds, according to a comparison of current and historic vegetation maps. Few unharvested areas of old growth remain. Decades of timber harvest, livestock grazing, and fire suppression have caused a shift in many areas from ponderosa pine forests and 1 Source: Oregon Department of Fish and Wildlife, website.: www.dfw.state.or.us 2 Source: Defenders of Wildlife. 1998. Central Oregon Intergovernmental Council Page 29 Central Oregon Community Investment Strategy woodlands to mixed conifer forests made up of denser stands of smaller trees, more vulnerable to attack by insects and disease. Loss of mature and old growth forests has led to declines among a number of species dependent on these habitats, including small forest carnivores, and more than 20 species of birds. Most of the ecoregion's at -risk species are associated with wetland and riparian habitats. They include the gray wolf, lynx, wolverine and several water bird species. Dams, diversion structures, and reduction of streamside vegetation have degraded streams with impacts to fish and aquatic invertebrates. Several at -risk plants occur throughout the ecoregion, from low - elevation riparian areas to alpine habitats. Summary The economic and physical, human and natural resources identified in Part One of the Community Investment Strategy are the foundation for the formulation of the long-term priorities and short-term projects identified by the Community Investment Board in Part Two and Part Three of the Strategy. Central Oregon Intergovernmental Council Page 30 Central Oregon Community Investment Strategy PART TWO - LONG-TERM IMPLEMENTATION STRATEGY The Central Oregon Community Investment Strategy is the result of a comprehensive regional planning process for identifying and addressing critical regional and community issues. The intent of this planning process is to build collaboration between government and non-profit organizations that address economic and community development issues in Central Oregon by integrating each entity's unique planning process into a single regional Strategy. The Strategy addresses the interrelated issues of economic and community development, workforce development, transportation, housing and the environment. This Strategy is intended to support, not replace, local planning efforts. The Central Oregon Community Investment Strategy officially integrates the Regional Investment Strategy and Rural Investment Strategy required by the Oregon Economic and Community Development Department and the Comprehensive Economic Development Strategy required by the Economic Development Administration. The Community Investment Strategy is a work in progress. Many of the issue areas identified in the Strategy have not yet been fully developed with specific long-term priorities due to constraints of time and funding. The Central Oregon Intergovernmental Council is working on the ongoing regional planning process with a steering committee representing the Central Oregon Community Investment Board, housing, environment, workforce, the Community Solutions Team, economic development, transportation, the Central Oregon Partnership, cities, counties and the Confederated Tribes of Warm Springs. The steering committee has focused on setting benchmarks and indicators as a tool to evaluate community investments and to aid in setting direction for future planning processes. The long-term priorities identified in the Community Investment Strategy have been formulated through inclusion and adoption of .the priorities of existing regional organizations. These priorities were adopted in order to reduce duplication in planning efforts and encourage collaboration and resource sharing. The Community Investment Strategy incorporates the priorities identified in the following regional plans: • The Local Unified Workforce Strategy for Region 10 Workforce Investment Board (2000-2005) • The Central Oregon Telecommunications Task Force Regional Strategic Strategy (2000) • The Central Oregon Community Action Agency Network's Five Year Goals & Objectives for Addressing Homelessness (2001-2003) • The Central Oregon Partnership Phase I Strategic Strategy (2001) • Restoring Oregon's Deschutes River: Developing Partnerships and Economic Incentives to Improve Water Quality and Instream Flows (1995) • Crook County Comprehensive Strategy for Children and Families, Vision 2010. • Deschutes County Community Strategy, Our Vision 2010. • A Comprehensive Strategy for Jefferson County's Children and Families Phase II. Central Oregon Intergovernmental Council Page 31 Central Oregon Community Investment Strategy Additionally, focus groups were convened in 1999 to develop priorities in the following issue areas which were not adequately addressed in existing regional plans: infrastructure, transportation, public facilities and parks, emergency services, and economic development. City managers, county administrators, tribal representatives, economic development professionals, mayors and planners attended these meetings and provided invaluable input on regional priorities in these issue areas. The priorities identified in these sessions were updated using the responses from the 2002 Needs and Issues survey conducted by the Central Oregon Intergovernmental Council in 2001. Also in response to the 2002 Needs and Issues survey, a new issue area was addressed relating to "Housing" as an economic resource and the previous "Affordable Housing and Poverty" issue area was split into "Social Services" and "Poverty". The long-term priorities identified in Sections 1 through 3 below will be utilized by the Community Investment Board to distribute grant funding in the Central Oregon region. Additional information on the Community Investment Board's funding process is found in Part Five of the Community Investment Strategy. The long-term priorities identified here will also drive strategic decision-making by the Central Oregon Intergovernmental Council, which serves as the Economic Development District for the region. Section 1. Economic and Physical Resource Priorities 1.1. Business Development. To assist Central Oregon communities to achieve business development throughout the region. • Assist start-up businesses and existing businesses in Central Oregon through the expansion of current business assistance programs and the support of new and innovative business assistance initiatives such as business incubators, regional marketing efforts, and the development of a more effective business capital system. • Assist communities to attract and recruit businesses that create primary jobs in the Central Oregon region through the support of cooperative marketing and public-private collaboration to enhance economic development opportunities. • Support the development of industrial parks and the protection of prime industrial land in the region through regional strategic planning, the development of industrial park master plans, the funding of infrastructure in pubic and private industrial parks, and the pursuit of the transfer of state and federal land to local use and local control. • Support public and private investments that lead to downtown capital enhancements such as enhanced pedestrian facilities, additional landscaping, parking improvements, and storefront rehabilitation. • Assist communities to attract tourists by supporting tourism events and services, particularly those that bring in tourists during the industry's shoulder season. 1.2 Workforce Development. To make increased employment opportunities and incomes available to people living in Central Oregon, while business and industry continues to prosper and grow; and to increase collaboration among partners (both public and private) resulting in a responsive, forward thinking system that is able to support and adapt to the needs of a changing economy. • Support efforts to increase responsiveness to employers' and employees' training needs. • Support efforts to reconnect welfare recipients and dislocated workers to the workforce. Central Oregon Intergovernmental Council Page 32 Central Oregon Community Investment Strategy • Support efforts to develop services to address the needs of all interested members of the workforce. • Support efforts that promote collaboration between public and private economic development entities to develop a workforce suited to attracting new businesses that offer family wage jobs. • Support efforts to expand flexible, non -degree training programs. • Assist workers in obtaining transferable skills to be employed in quality jobs. • Support efforts to provide the skills necessary to obtain and maintain employment. • Support efforts to increase job retention and income of Central Oregon workers. • Support efforts to reduce dependency on public assistance and increase self-sufficiency. • Support education reform that reflects the goals and objectives of the Local Unified Workforce Strategy. • Support efforts to create better connections between school and work. • Support efforts to decrease the overall high school dropout rate. • Support efforts to prepare youth to transition from the classroom to careers. • Support efforts to increase academic achievement skills to support lifelong learning. • Support efforts to facilitate availability of training and education for the current workforce. • Assist business to be competitive by supporting a flexible skilled workforce. • Support efforts to provide personalized service to employers based upon knowledge of the job setting. • Encourage and give priority to economic development activities for those employers that provide family wage jobs. 1.3. Infrastructure. To assist Central Oregon communities provide the water, sewer, street and storm drainage infrastructure needed to accommodate growth and provide a healthy environment for existing Central Oregon residents and businesses. • Assist in the identification of infrastructure deficiencies and capacity needs and the development of financing and implementation strategies for infrastructure construction on both a community and a regional level. • Assist in the construction of new infrastructure facilities in high-density areas and the extension of infrastructure to areas within urban growth boundaries, particularly providing affordable sewer services to those areas on failing sewer or septic systems that have a high percentage of low to moderate income households. • Support the development of additional water resources through the acquisition of water rights and encourage the efficient use of existing water resources through education and conservation efforts. • Increase awareness of and assist communities to Strategy for new Federal storm drain regulations through the support of educational efforts, the inventory of existing sites, and the development of strategies to comply with or be exempted from the new regulations. • Work with state and federal funding agencies to streamline the process for receiving loan and grant funding for infrastructure improvements and to consider alternative forms of financing such as State income tax revenue sharing. Central Oregon Intergovernmental Council Page 33 Central Oregon Community Investment Strategy 1.4. Transportation. To seek improvements to regional highways, local streets, bike paths, and airports; to develop additional transportation options to ensure a mobile workforce; and to develop solutions to road maintenance equipment acquisition challenges for areas with demonstrated need. • Seek improvements to regional highways and alternate routes by encouraging the Oregon Department of Transportation to seek advance acquisition of right-of-ways, working with the Department of Land Conservation and Development to designate highway bypasses outside urban growth boundaries, and pursuing the completion of a regional transportation Strategy. • Seek improvements to local streets and bike paths, particularly those that enhance the connectivity of the entire street system and reduce traffic on congested highways and arterials. • Support efforts to develop pilot projects for inter- and intra -city mass transit systems, identify better ways to utilize existing systems, involve employers in seeking transportation solutions, and encourage telecommuting, flex -time, and non-polluting modes of transportation. • Support the development of airport infrastructure and facilities at municipal and regional airports. • Assist Central Oregon communities with demonstrated need to secure road maintenance equipment by seeking state and federal surplus equipment grants and by encouraging collaboration and equipment sharing between communities. 1.5. Telecommunications. To accomplish prosperous communities through unified telecommunications by: securing affordable advanced telecommunications services for every Central Oregonian; and providing the training and support necessary for Central Oregonians to effectively utilize telecommunications. • Support efforts to increase the quality of voice, data, and video telecommunications infrastructure, including facilitation of regional access to a second provider of broadband services, to provide: improved services for Internet Service Providers and other telecommunications providers by providing new sources of bandwidth to accommodate increased customer demand, improved access to high-speed data circuits for government, health care, education, nonprofits, and the business sector as they integrate the Internet into routine business operations, increased competition leading to lower prices and increased advanced services, and affordable broadband services available to all Central Oregonians. • Support efforts to expand access to lifelong education and training opportunities so that Central Oregon's citizens and workforce can compete in the emerging information society. • Support efforts to increase the quality of local healthcare available in all areas of Central Oregon through telecommunications and telemedicine. • Support efforts to enhance government efficiency and expand citizen access to government services and information through telecommunications. • Support efforts to enhance the private sector's ability to compete in a global economy through telecommunications. • Support efforts to enhance community -building and civic life through telecommunications. 1.6. Emergency Services. To assist rural areas in providing emergency services and to promote regional cooperation in meeting emergency service needs. • Assist in the construction of rural community service centers that serve multiple functions (e.g. a fire station that also serves as a community center and an emergency shelter). Central Oregon Intergovernmental Council Page 34 Central Oregon Community Investment Strategy • Encourage emergency service providers to cooperate regionally to achieve increased service levels or reduced costs. • Expand and stabilize funding for county rural public health services such as mobile health clinics. 1.7. Public and Non -Profit Facilities and Parks. To support the development ofpark and recreation facilities and public and non-profit facilities particularly in rural areas. • Assist in the development or improvement of park and recreation facilities, programs and agencies. • Assist public and non-profit organizations to construct and improve facilities that serve a compelling public interest and cannot be completed within the budgeted resources of the organization. • Seek stable sources of funding to provide technical assistance to smaller communities to secure grant funding for facilities. 1.8. Housing. To ensure that Central Oregonians have access to housing_ that meets their needs and contributes to a healthy community. • Support efforts to develop a regional affordable housing Strategy and to maintain statistical information to assess housing needs. • Support efforts to increase, maintain, and preserve the region's stock of decent, safe and sanitary affordable housing through new development, rehabilitation, and preservation of current affordability. • Support efforts to increase the range of housing options available to meet the needs of Central Oregonians, including special populations such as the elderly and low and moderate - income individuals and families. • Support efforts to develop funding and planning tools and techniques to increase the availability of affordable housing and preserve land affordability. • Support the creation of healthy mixed income neighborhoods and the revitalization of targeted neighborhoods. Section 2. Human Resource Priorities 2.1. Social Services. To provide efficient, effective social services to constituents in a non - stigmatizing, comprehensive way to build healthy communities. • Support efforts to secure stable funding and community support to provide resources for social services. • Support efforts to provide comprehensive, coordinated, and consistent information about the availability of and access to social service programs targeted to different populations. • To provide safe and supervised shelter for homeless people and to prevent homelessness by increasing the availability of rental assistance to very- low income households and by developing homeless intervention programs. • To provide housing and a continuum of support services for people who are coming out of emergency shelters or who are ready to transition to self-sufficiency. • To develop housing and establish links to support services for populations with special needs i.e., youth, chemically dependent, mentally ill, etc. Central Oregon Intergovernmental Council Page 35 Central Oregon Community Investment Strategy • To develop a regional Strategy for senior services including a comprehensive needs assessment. 2.2. Poverty. To alleviate poverty in Central Oregon by addressing its root causes • To find effective means to break the cycle of poverty where there is an established family history of poverty. • To provide effective, sustained pathways out of poverty for those living in chronic poverty because they lack the economic or social capacity to help themselves - people in poverty due to disability or addiction and the elderly. • To provide economic opportunity for those who are currently unable to secure employment that provides a livable wage through creation of living wage jobs and to provide affordable housing in the proximity of available jobs and/or provide transportation options that mitigate the economic cost (vs. social cost) of current commuting patterns in the region. • Need to increase scope of and accessibility of educational and training opportunities in order to attract new industry to the region and prepare people for jobs that provide adequate economic opportunity to sustain themselves and provide for their families. • To reduce or eliminate racial/cultural isolation and discrimination that are barriers to economic opportunity for many. • To build educational programs and support systems within our communities that strengthen weak family structures. • To identify ways to strengthen weak traditions of civic engagement and build greater social capital especially in communities, neighborhoods and population segments with high rates of poverty. • To increase community/regional awareness of (and increase interest in) poverty. 2.3. Children and Youth. To have strong, nurturing families and caring communities that result in healthy, thriving children and youth. • To support strong, nurturing families by ensuring that their basic needs of food, shelter, clothing, and employment are met; by providing effective and affordable alcohol, tobacco, and drug treatment and recovery support services; by preventing family violence; and by ensuring access to the preventive and primary health, mental health, dental and emergency services they need. • To support strong, nurturing families by meeting the needs of children and families more efficiently and effectively through collaborative service integration and the provision of services sensitive to the diversity of the population. • To foster caring communities by increasing volunteer opportunities to build positive personal relationships for children, youth and families; by ensuring that agencies and programs make maximum and effective use of volunteers as integral parts of their services; and by assisting community members in developing their potentials and capacities from early childhood_ through lifelong learning. • To promote healthy, thriving children by providing quality health and child development services; by providing parent education and family skills training; by ensuring the affordability, quality, stability and availability of child care, and by promoting quality childhood education programs. • To promote healthy, thriving youth by ensuring that they all have opportunities to be academically successful to their full potential; by providing a contextual learning Central Oregon Intergovernmental Council Page 36 Central Oregon Community Investment Strategy environment that fosters independent living and work skills; and by developing a juvenile community justice system where all youth are valued, where community members take responsibility for creating inclusive and effective crime prevention efforts, and where offenders are held accountable to victims, communities and themselves. 2.4. Substance Abuse and Crime. To expand substance abuse and crime programs with an emphasis on prevention, effective treatment and community justice. • Support efforts to expand drug and alcohol abuse prevention programs, outpatient treatment services, and inpatient/residential services. • Support efforts to increase jail space. • Support efforts to expand services for adults needing protective services and for family violence intervention and treatment. • Support efforts to pursue community justice through offender accountability, support for victims, mediation and creating community conditions conducive to crime reduction. 2.5. Cultural Assets (arts, history, etc.). To support efforts to develop a regional Strategy for the preservation, expansion, and utilization of Central Oregon's cultural assets and to implement projects with unique community value or regional significance. 2.6. Community Involvement/Leadership. To support community involvement and leadership activities that build community collaboration and increase the capacity of the community take responsibility for and address its most pressing issues. 2.7. Health. To increase access to medical care in rural areas and support efforts that provide affordable health services to low- and moderate -income populations. Section 3. Natural Resource Priorities 3.1. Water quality & Ouantity. To support efforts to develop and implement market-based solutions to improve instream flows and water quality. • Support efforts to reduce instream flow depletion through economically efficient methods such as water conservation, leasing and transfers. • Support cost-effective efforts to improve water quality such as controlling non -point sources of pollution and developing a system of tradable discharge permits. • Support efforts to further develop a regional Strategy for the efficient management of Central Oregon water resources. 3.2._Air Quality. To support efforts to develop a regional Strategy for the effective maintenance ofair quality in Central Oregon. 3.3. Public Lands Manac ement. To support efforts to develop a regional Strategy for the optimal use ofpublic lands in Central Oreton. 3.4. Biodiversity. To support efforts to develop a rezional Strategy for addressing sensitive, threatened, and endangered species in the region. Central Oregon Intergovernmental Council Page 37 Central Oregon Community Investment Strategy Section 4. Necessary Actions to Implement Strategy The Community Investment Strategy priorities identified above are complex because they encompass such a wide range of issues. Neither the Central Oregon Community Investment Board nor the Central Oregon Intergovernmental Council have the resources or expertise to implement the Strategy. Rather, these entities hope to serve as a catalyst for regional discussion and action by private, local, state, and federal partners to address the most pressing economic and community development issues in Central Oregon. Collaboration among the private sector, local government, state government, and federal government is essential to effectively implement the Central Oregon Community Investment Strategy. On the local level, the most efficient investments of resources in economic and community development will result if both private and public sector organizations agree on and work off of the same planning document. In particular, additional effort needs to be expended to identify regional priorities for cultural assets (arts, history, etc.), community involvement and leadership, health, air quality, public lands management, and biodiversity. The region will also benefit from exploring the cross -disciplinary impacts of economic and community development issues. Finally, the collaboration of the private and public sector in the region will be more effective if these entities can express a common regional agenda to state and federal legislators and funding agencies. State and federal recognition of Central Oregon's priorities as expressed in this Strategy is also essential to effective implementation. The Central Oregon region needs state and federal agencies to make their funding resources available in an easily -accessible and timely manner. Lending and granting decision processes need to be streamlined so that resources are more easily acquired and managed by local jurisdictions. Also, state and federal agencies need to make sure that adequate resources are devoted to managing loan and grant programs so that administrative details such as contracting or monitoring do not become a barrier to effective local and regional development. Finally, the Central Oregon region believes that its citizens would be best served if state and federal agencies shifted resources and decision-making to.local governments and communities based on measurable outcomes. In addition to these general comments on state and federal cooperation needed to implement the Central Oregon Community Investment Strategy, there are some specific issues identified in the Strategy where state and federal assistance is essential. The Central Oregon region is looking to its state and federal partners for assistance in identifying a stable funding source for fostering human resource capacity in small towns. With minimal staffing levels, the small towns of Central Oregon find it difficult to compete for state and federal resources that are very needed to make their communities healthy and productive. The Central Oregon region would also like to invite state and federal agencies to consider making grants of surplus road maintenance equipment to local jurisdictions with demonstrate need. The Central Oregon region is also seeking state and federal cooperation in a number of land -use issues. These issues include transferring state and federal lands to local use and control for the purpose of furthering economic and community development in certain areas. The region would Central Oregon Intergovernmental Council Page 38 Central Oregon Community Investment Strategy like state and federal partners to recognize the importance of municipal needs for additional water rights to accommodate growth and the need to consider highway bypasses outside of urban growth boundaries. Finally, the Central Oregon region would like to encourage the Oregon Department of Transportation to consider advance acquisition of rights-of-way for future highway development in order to avoid high property acquisition costs and to minimize the disruption of the community. Central Oregon Intergovernmental Council Page 39 Central Oregon Community Investment Strategy PART THREE - TWO-YEAR IMPLEMENTATION STRATEGY The Central Oregon Community Investment Board intends to implement its Community Investment Strategy in the next two years through funding projects that address the Board's short-term priorities for 2003-2005. These priorities are: l: Job Creation in Crook, Deschutes and Jefferson Counties. 2. Job Retention in Crook, Deschutes and Jefferson Counties. 3. Maximizing local, state and federal funds leveraged for job creation and retention projects. The Community Investment Board has adopted a two-pronged approach that will effectively utilize Regional and Rural Investment dollars to address the above priorities. First, the Board will grant half of its Regional and Rural Fund allocations to Economic Development for Central Oregon (EDCO) to fund private sector job creation through the "Business Development Opportunity Fund" project. Secondly, the Board will utilize remaining Regional and Rural funds, less administrative expenses, to provide "Immediate Opportunity" grants to cities, counties and the Confederated Tribes of Warm Springs for the purpose of funding job creation and retention projects. Following are detailed descriptions of these initiatives: Business Development Opportunity Fund: The Community Investment Board made a pilot investment in 2001-2003 with Economic Development for Central Oregon (EDCO) that focused on private -sector job creation through business recruitment and retention activities. The Community Investment Board chose to grant funds to EDCO for the following reasons: • EDCO has a highly visible public, web and community presence and often serves as a "gateway" for new businesses seeking to enter Central Oregon. • EDCO's board of directors is representative of all Central Oregon communities. • EDCO has an experienced economic development staff that is well networked with other Oregon Economic Development professionals and well respected in the region. • Due to the presence of a "retention specialist" on its staff, EDCO can often respond to the needs of businesses struggling to stay in the region. • Because EDCO is a private non-profit entity, it has the ability to act rapidly and to respond to immediate job creation and retention opportunities. • EDCO is well networked with the Chambers of Commerce in the region, which provides an alternative "gateway" to the region for new businesses seeking to the region and those businesses struggling to stay in the region. This 2001-2003 investment proved successful in exceeding all job creation and retention targets. To build on the success of this pilot project, the Central Oregon Community Investment Board will grant to EDCO half of its 2003-2005 Regional and Rural Investment fund allocation to be used to provide incentives for business recruitment and retention. EDCO will utilize Regional/Rural Investment funds to create and/or retain jobs reportable to the Oregon Economic and Development Commission by June 30, 2006. The fundamental components of this project are as follows: Central Oregon Intergovernmental Council Page 40 Central Oregon Community Investment Strategy • The Community Investment Board and EDCO will establish contractual targets for job creation, retention, and funds leveraged. These targets will be based on the Community Investment Board's performance measurement targets. • EDCO will provide grants to businesses for the purpose of job creation and retention. These grants will be structured such that job creation, retention and leveraging targets can be met. • EDCO and the Community Investment Board will agree to the ratio of funds targeted toward recruitment projects versus retention projects. EDCO will invest no Regional/Rural Investment Funds in retention projects without first ascertaining that all other opportunities for loan and grant capital have been exhausted. • Throughout the term of the contract, EDCO will regularly canvass the Central Oregon Chambers of Commerce, Central Oregon Intergovernmental Council, Oregon Economic and Community Development Department, Central Oregon Visitors Association and other entities involved in regional economic development to identify businesses that may be candidates for Regional/Rural Investment Funds. • In making investment decisions, EDCO will attempt to distribute investment among communities and counties located in Crook, Deschutes and Jefferson Counties. EDCO will give priority to 1) communities where investments of 2003-05 biennial Regional and Rural Investment funds have not yet been made; and 2) the most rural and distressed communities of the region as indicated by the Oregon Economic and Community Development Department Rural and Distressed Community index. • EDCO will report quarterly to the Community Investment Board regarding investments and outcomes. Immediate Opportunity Fund: In lieu of a one-time call for projects with a competitive application process, the Community Investment Board will make available the remainder of Regional and Rural Investment funds on an Immediate Opportunity basis, to fund job creation and retention projects and activities proposed by Central Oregon cities, counties and the Confederated Tribes of Warm Springs. Following are components of this fund: • The Community Investment Board will accept project applications from cities and counties at any time throughout the biennium, until such time that all Regional and Rural Investment funds are committed. • The Community Investment Board will fund projects that address the overall regional long-term priorities, as identified in the Central Oregon Community Investment Strategy. • The Community Investment Board will make funding decisions on a quarterly basis. • Projects will be required to create or retain jobs, and to leverage local, state, and/or federal dollars. Required levels of job creation/retention and leverage will be commensurate with the Community Investment Board's performance measures. The Two -Year Implementation Strategy will serve as the region's Rural Action Strategy. Central Oregon Intergovernmental Council Page 41 Central Oregon Community Investment Strategy PART FOUR — BARRIERS The three principal barriers to implementation of the Central Oregon Community Investment Strategy described in Parts Two and Three are 1) limited financial resources; 2) the broad scope of the issues addressed in the Strategy; and 3) the Board's limited ability to implement noir funding related priorities. The Central Oregon Community Investment Board anticipates receiving approximately $520,000 in lottery funds from the Oregon Economic and Community Development Department between July 1, 2003 and June 30, 2005 to implement the Central Oregon Community Investment Strategy. This is a reduction in funding by over 50% from previous biennia. This decrease in funding has occurred at a time when the need for this resource is at its highest, as unemployment rates remain high, and job creation is stagnant or in decline. Because the Board has limited resources, it will need to focus on leveraging other private, local, state and federal resources to the maximum extent possible, encouraging collaboration to make the most efficient use of resources, and fostering creativity in addressing priority issues. The Central Oregon Community Investment Board intends to work closely with the Oregon Community and Economic Development Department (OECDD) with the expectation of providing the gap financing necessary to complete priority community projects and leverage the maximum level of state and federal resources. The Board also plans to encourage collaboration among local organizations in the public and private sector to leverage local resources and encourage the most efficient use of resources. Finally, the Board would like to foster regional cooperation and creativity by participating in regional forums seeking cost-effective solutions to the regional priorities identified in this Strategy. A second challenge to the implementation of this Community Investment Strategy is the broad scope of the issues addressed in the Strategy. Especially with limited resources, the Central Oregon Community Investment Board has very little ability to address all the regional priorities identified in the Strategy on its own. However, by adopting existing plans prepared by other Central Oregon organizations, the Board has already engaged additional human and financial resources from the organizations that will be working towards the same priorities. The Community Investment Board hopes to facilitate the efforts of these organizations where possible by again providing the gap financing that will allow appropriate projects to be implemented. Finally, the third major barrier to the implementation of the Central Oregon Community Investment Strategy is that the primary resources that the Central Oregon Community Investment Board can provide are financial resources. Yet some of the goals identified in the Strategy are not funding -related. For example, one of the priorities in the infrastructure category is to work with state and federal funding agencies to streamline the process for receiving loan and grant funding for infrastructure improvements and to consider alternative forms of financing. Fortunately, because the Central Oregon Community Investment Strategy is also the Strategy that will be adopted by the Central Oregon Intergovernmental Council Board as the Comprehensive Economic Development Strategy for the region, there will be at least some level Central Oregon Intergovernmental Council Page 42 Central Oregon Community Investment Strategy of staffmg funded through an Economic Development Administration Planning grant that can be targeted towards working on the non -funding related goals identified in this planning document. The implementation of the Central Oregon Community Investment Strategy will be a challenge. However, the Central Oregon Community Investment Board has positioned itself to leverage financial resources, encourage collaboration, and work with other entities in the region to address the economic and community development priorities of the region. Central Oregon Intergovernmental Council Page 43 Central Oregon Community Investment Strategy PART FIVE - MANAGEMENT STRATEGY Section 1. Administrative Agent Crook, Deschutes and Jefferson counties have entered into an agreement with the Central Oregon Intergovernmental Council for the fiscal and administrative management of the Central Oregon Regional Investment and Rural Investment Fund programs. The Central Oregon Intergovernmental Council (COIL) is a government entity organized under ORS 190. COIC is a state -sanctioned Council of Governments, and since 1972 has been one of the few organizations in the region that involves all three counties and seven cities in policy- making, program planning and service delivery. COIC is governed by a 15 -member Board, with representatives from each of the member governments: the counties of Crook, Deschutes and Jefferson, and the cities of Bend, Culver, Madras, Metolius, Prineville, Redmond and Sisters. Five members representing the interests of business, tourism, agriculture, wood products, and the unemployed/underemployed are also on the COIC Board. From 1993 to 2003, COIC was the fiscal and administrative agent for the Central Oregon Regional Strategies Board and the Central Oregon Community Investment Board. In the upcoming biennium, as was the case this past biennium, the majority of the staffing services provided to the Central Oregon Community Investment Board by COIC will be undertaken by the Program Administrator for Economic Development and the Program Assistant for Economic Development. The following COIC staff will also provide some level of services to the Central Oregon Community Investment Board: Executive Director, Fiscal/Administrative Manager, Staff Accountant, Accounting Clerk, Community Relations Coordinator, Computer Technician, and additional administrative staff as needed. The intergovernmental agreement for the administration of the Regional Investment and Rural Investment Fund programs is attached to this Strategy as Appendix A. The agreement is attached for informational purposes. The Central Oregon Community Investment Board reserves the right to amend the agreement as needed for the effective administration of the Regional Investment and Rural Investment Fund programs. Central Oregon Intergovernmental Council Page 44 Central Oregon Community Investment Strategy Section 2. Application Process The Central Oregon Community Investment Board will address Strategy priorities through a two-pronged approach, as outlined in Part Three, Two -Year Investment Strategy. The application process for these two approaches is as follows: Business Development Opportunity Fund: The Central Oregon Community Investment Board will contract with Economic Development for Central Oregon (EDCO) to identify business recruitment and retention projects that lead to job creation and/or retention. Throughout the term of the Business Development Opportunity Fund contract, EDCO will regularly canvass the Central Oregon Chambers of Commerce, Central Oregon Intergovernmental Council, Oregon Economic and Community Development Department, Central Oregon Visitors Association and other entities involved in regional economic development to identify businesses that may be candidates for Regional/Rural Investment Funds. EDCO will develop and utilize a specialized project application form. Immediate Opportunity Fund: The Central Oregon Community Investment Board will advertise the availability of Regional and Rural Investment funds through the Immediate Opportunity Fund project by issuing news releases, and through direct mailings to cities, counties, tribes, special districts, and nonprofit organizations related to economic development. The Board will make Immediate Opportunity Grants only to city or county sponsored projects, and will accept project applications at any time throughout the biennium, until such time that all Regional and Rural Investment funds are committed. The Community Investment Board will make Immediate Opportunity funding decisions on a quarterly basis. The Board intends to use a single application for both the Regional Investment and Rural Investment Fund programs. Applicants will be asked to address the overall regional priorities identified in the Central Oregon Community Investment Strategy, and to identify levels of job creation, retention, and funds leveraged. The Board will determine whether to fund successful applications out of the Regional Investment or Rural Investment Fund based upon the extent to which the projects meet the objectives of each program. Applications will be reviewed by COIC for completeness, accuracy, and compliance with the minimum program requirements related to job creation and funds leveraged. Any applicants that do not succeed in passing this review will be notified and given an opportunity to correct the application. All applications that pass final staff review will be forwarded to the Central Oregon Community Investment Board. Applicants that do not pass final staff review may appeal the staff decision to the Executive Committee of the Central Oregon Community Investment Board. The decision of the Executive Committee on the appeal is final. The Board will evaluate the applications based upon the criteria established below: Overall Criteria for Both the Regional Investment and Rural Investment Fund The following criteria will be considered by the Board when making Regional Investment and Rural Investment Fund grant awards: • Extent to which the project addresses the regional priorities established by the Board in the Central Oregon Community Investment Strategy • Extent to which the project creates jobs Central Oregon Intergovernmental Council Page 45 Central Oregon Community Investment Strategy • Extent to which the project is ready -to -proceed • Extent to which the project will leverage additional matching funds • Extent to which the project is feasible in the short- and long -run • Extent to which the project cannot secure funding from other financing sources • Extent to which the outcome of the project can be measured • Track record of applicant • Grant funds cannot be used for: - debt retirement - reimbursement of expenses incurred prior to grant award - the relocation of a facility from one labor market area within the state to another, if not accompanied by an expansion of the applicant's business or employment Based upon the Board's evaluation, applications will be selected that best meet the overall criteria listed above. The Board will then apply the following additional specific criteria to determine whether the Regional Investment Fund or the Rural Investment Fund is the most appropriate funding source for the project. Criteria Specific to the Regional Investment Fund • Extent to which the project addresses at least one of the following objectives of the Regional Investment Fund: - (a) the support of communities and populations that have been left out of Oregon's economic expansion and diversification; - (b) the assistance of companies that are starting up or already in business in Oregon to compete globally; - (c) the reinforcement of Oregon's long-term economic prosperity and livability; and - (d) the coordination of regional efforts for economic and community development, education, workforce development, natural resource management, and other civic activities Criteria Specific to the Rural Investment Fund • Extent to which the project addresses at least one of the following objectives of the Rural Investment Fund: - (a) addresses the priorities of rural areas that have the greatest economic challenges; - (b) fills a gap in financing for programs and projects; - (c) leverages other resources by bringing in public or private partnerships; - (d) establishes measurable economic outcomes and specific performance measurements • Rural Investment Funds cannot be used for: - local government expenditures for Existing or Continuing Public Services Section 3. Grants to Private Businesses The Central Oregon Community Investment Board does not intend to make grant directly to private businesses, since this function will be accomplished through the Business Development Opportunity Fund project contract. However, the Board acknowledges that circumstances could arise in which grants to private businesses may be necessary. If the Board does provide grants directly to private businesses, it will be in partnership with public lending programs that operate in Central Oregon. Grant funds will be targeted toward viable business projects that would be eligible for public lending programs except for a deficiency of equity. The grant funds would be used to strengthen the equity position of the business allowing the project to be financed where it would not otherwise be eligible for public loan funds or gap funding. Regional and Rural Investment Funds will not be used to make loans. The Board will utilize the administrative proposal developed during the 1999 — 2001 program year as a guideline in which this grant program will operate. COIC loan staff will identify loan applicants that meet the criteria of the Board and would benefit from the grant funding. Staff Central Oregon Intergovernmental Council Page 46 Central Oregon Community Investment Strategy will bring these applications to the Central Oregon Community Investment Board for final approval. Individual private businesses receiving a grant of $50,000 or more must enter into a First Source Hiring Agreement. Section 4. Other Management Policies The Central Oregon Community Investment Board has adopted a number of additional management policies to ensure accountability for the expenditure and proper use of grant funds. A summary of the Board's current policies are included in Appendix B. These policies are provided for informational purposes. The Central Oregon Community Investment Board reserves the right to amend the management policies as needed for the effective administration of the Regional Investment and Rural Investment Fund programs. Section 5. Involvement of the Disadvantaged, Minority Groups, and Rural Areas The Central Oregon Community Investment Board will involve the disadvantaged, minority groups, and rural areas in all stages of Strategy development and implementation. Public hearings will be held in each county prior to the adoption of the Community Investment Strategy. When the Central Oregon Community Investment Board initiates the implementation of its regional Strategy by advertising for applications, it will again notify the same group of cities, counties, tribes, special districts, and non-profit organizations related to economic and community development through a direct mailing. Following is a list of organizations contacted directly as representatives of the following groups Central Oregon Intergovernmental Council Page 47 The Disadvantaged Alliance for the Mentally Ill of Central Oregon The Alyce Hatch Center Bend Area Habitat for Humanity Boys and Girls Aid Society Boys and Girls Clubs of Central Oregon CASA Cascade Community Development Central Oregon Battering and Rape Alliance Central Oregon Community Action Agency Network Central Oregon Council on Aging Central Oregon Crisis Pregnancy Center Central Oregon Intergovernmental Council Central Oregon Regional Housing Authority Central Oregon Resources for Independent Living Central Oregon Family Resource Center Children's Learning Center Crook County Family Resource Center Crooked River Ranch Senior Group Deschutes County Healthy Beginnings Deschutes Housing Solutions Early Intervention & Building Blocks Preschool Grandma's House of Central Oregon Haven House Healthy Start Minority Groups. Confederated Tribes of Warm Springs HAABLA Rural Areas. All Cities All Counties All Special Districts Central Oregon Community Investment Strategy Housing Opportunities, Inc. J Bar J Youth Services Jefferson County Habitat for Humanity KIDS Center La Pine Community Campus La Pine Senior Citizens Larsons Leaming Center Lutheran Community Services Meadowlark Manor Newberry Habitat for Humanity Opportunity Foundation of Central Oregon Redmond Council for Senior Citizens Redmond Habitat for Humanity Residential Housing Inc. Rimrock Trails Senior Citizens of Jefferson County Sisters Senior Council Sisters Habitat for Humanity Sisters Organization for Activities & Recreation Society of St. Vincent de Paul Soroptomist International of Prineville South Central Oregon Domestic Violence Coalition The Salvation Army United Senior Citizens of Bend Victims Assistance Foundation Winning Over Anger & Violence Human Dignity Coalition Indian Nations Cultural & Sports Exchange Fndation Confederated Tribes of Warm Springs Economic & Community Development Non -Profit The Board will also issue news releases announcing the availability of grant funds. These news releases will be sent to the following media organizations: The Bulletin, The Madras Pioneer, The Central Oregonian, The Redmond Spokesman, The Nugget Newspaper, Cascade Business News, Frontier Advertising, The Spilyay Tymoo, KICE, KBND, KTWS, KLRR, KNLR, KRCO, KIJK, KWEG, KQAK, KSJJ, KXIX, KWSO and KXUX Central Oregon Intergovernmental Council Page 48 Central Oregon Community Investment Strategy PART SIX - EVALUATION STRATEGY For the 2001-2003 Biennium, the Central Oregon Community Investment Board developed performance measurements in accordance with guidelines established by the Oregon Economic and Community Development Department and adopted by the Oregon Economic and Community Development Commission. These performance measurements identified high level outcomes and intermediate outcomes that the Board utilized as a means to monitor the success of the investments it made in the Central Oregon region. The 2001-2003 performance measures can be found in Appendix C. The Central Oregon Community Investment Board recognizes that the economic climate in Central Oregon is dramatically different than in 2001, and therefore has identified a new set of benchmarks and indicators. Following are the Central Oregon Community Investment Board's adopted 2003-2005 performance measures: 1. Job Growth 11. Real Average Wage Per Job A. Number of Jobs Created or Retained A. Number of Jobs Created or Retained Above County Average W 105 Jobs Created or Retained 53 Jobs Created or Retained Above County Average Wage III. Funds Leveraged with A. Amount of Private and $2,604,565 in non-OECDD Short- and Long -Tenn Public Funds Leveraged funds leveraged through Investments through Investments Investments While the Central Oregon Community Investment Board will focus on job creation and retention during the 2003-2005 biennium, the Board recognizes that the performance measures established for the 2001-2003 biennium remain an accurate reflection of the Board's intent, and an effective tool to measure the success of the Board's performance. Rather than eliminating these outcomes and indicators entirely, the Board will retain them for corsideration next Biennium. Central Oregon Intergovernmental Council Page 49 REVIEWED LEGAL COUNSEL Appendix B: Additional Management Policies For Recording Stamp Only CENTRAL OREGON COMMUNITY INVESTMENT BOARD INTERGOVERNMENTAL AGREEMENT Central Oregon Intergovernmental Council Crook County Deschutes County Jefferson County Administration Services Regional Investment and Rural Investment Programs This Agreement, effective July 1, 2003, is made and entered into under the authority of ORS 190.010 by and between the counties of Crook, Deschutes, and Jefferson (hereinafter "Region") and the Central Oregon Intergovernmental Council (hereinafter "Council"). 1. Purpose It is the purpose of this Agreement to designate the Council as the fiscal and administrative entity that will act as staff for the Central Oregon Community Investment Board (hereinafter "Board") which was created by an Intergovernmental Agreement dated October 6, 1999 and modified by Modification #1 dated July 1, 2001. 2. Term of Agreement This Agreement shall begin on the date as set out above and shall terminate on June 30, 2006; or when all three of the following conditions are met: 1) the Regional Investment and Rural Investment funds received by the Council between July 1, 2003 and June 30, 2005 are expended or returned to the State of Oregon, and 2) all contracts utilizing these funds are closed, and 3) all required reports to the State of Oregon accounting for these funds are submitted, whichever is earlier. 3. Powers and Responsibilities A. The Council shall have the following powers and responsibilities: 1. To update the Community and Economic Assessment of the Region, which at a minimum shall include: (a) an analysis of the current economic status of the Region; (b) an overview of the current housing, transportation, and social characteristics of the Region; and an analysis of the unique or significant resources that provide the foundation for the regional investment strategy. Central Oregon Intergovernmental Council Page 50 2. To update the Trend Analysis of the community and economic indicators in the Region, which at a minimum shall include: (a) a forecast of future economic activity in the Region; (b) a forecast of future housing, transportation, and social trends. To update the Regional Investment Strategy, which at a minimum shall include: (a) a strategy identifying short-term and long-term regional economic and community development needs; (b) a long-term strategy to implement the regional investment strategy including necessary actions by local governments, the private sector, State government, and Federal government; (c) an analysis of the barriers to the implementation of the regional investment strategy and an identification of the means to overcome those barriers; (d) a two-year investment strategy that describes projects and activities to be undertaken or funded by the State through lottery proceeds and other sources; (e) a strategy for involvement of disadvantaged and minority groups in the region; (f) an evaluation strategy for measuring and monitoring regional investment strategy performance; (g) an overall strategy management and project implementation plan that demonstrates the Region's capacity to allocate resources and insures that such resources are effectively used; and (h) any other elements required by the State to be incorporated into a regional investment strategy. To update the Rural Investment Strategy, which at a minimum shall include: (a) a description of how the Board will use the Rural Investment Fund to meet the needs of rural areas consistent with the objectives of the Rural Investment Fund and in cooperation with local development and planning efforts; (b) an identification of the objectives the Board will use Rural Investment Funds to further; (c) a description of the process the Board will employ to solicit input and participation of rural areas; (d) a strategy for how the Board will select economic and community development projects to be funded based on criteria identified in OAR 123-045-0040; (e) an explanation of how the Board will measure progress toward meeting its objectives; and (f) any other elements required by the State to be incorporated into a rural action strategy. 5. To draft and make revisions to any of these planning documents and reports as requested by the Board or required by the State. To receive all Regional Investment and Rural Investment funds and to maintain discrete accounting records for expenditures and cash balances as required by the State. Central Oregon Intergovernmental Council Page 51 7. To hire necessary employees and purchase necessary equipment and supplies to undertake the activities described in this Agreement. 8. To arrange facilities, provide appropriate notice under the Public Meetings Law, prepare agendas and other supplemental meeting materials, and record the minutes of all public meetings. 9. To file, retain, dispose of, or allow inspection of public records as required by State of Oregon Public Records Law. 10. To obtain and at all times during the duration of this Agreement keep in effect comprehensive liability insurance and property damage insurance covering the contracted activities. Said insurance shall, at a minimum, provide for: a) $50,000 to any claimant for any number of claims for damage to or destruction of property, including consequential damages, arising out of a single accident or occurrence. b) $100,000 to any claimant as general and special damages for all other claims arising out of a single accident or occurrence, unless those damages exceed $100,000, in which case the claimant may recover additional special damages, but in no event shall the total award of special damages exceed $100,000. c) $500,000 for any number of claims arising out of a single accident or occurrence. 11. To provide Certificates of Insurance to the Board naming the Board and its participating member counties as additional insureds for all activities performed under this Agreement upon request. These Certificates shall contain a provision that coverages afforded under the policies cannot be canceled and restrictive modifications cannot be made until at least thirty (30) days prior written notice has been given to the Board. 12. To indemnify, defend and hold harmless the Board and its participating member counties, their officers, employees and agents from and against any and all claims, suits, actions, damages, costs, losses and expenses asserted by any person or entity, arising from or caused by reason of any and or all of the activities or services performed under this Agreement. 13. To secure legal counsel regarding any legal issues or legal proceedings taken against the Council or any employees of the Council relating to their activities pursuant to the performance of this Agreement. 14. To comply with all Regional Investment and Rural Investment Fund administrative rules, all terms and conditions established in grant award contracts with the Oregon Economic and Community Development Department, and all applicable Oregon law. 15. To advertise and/or issue news releases announcing the availability of grant funds. 16. To serve as the primary contact for information regarding the Regional Investment and Rural Investment programs and to market the programs in the Region. 17. To draft and make revisions to application materials and processes as requested by the Board. 18. To receive applications and review them against the criteria established by the Board and recommend to the Board those applications that meet the minimum qualifying criteria. Central Oregon Intergovernmental Council Page 52 19. To enter into grant award contracts as appropriate to evidence awards from the Regional Investment and Rural Investment programs and to ensure compliance with the terms and conditions of the Regional Investment and Rural Investment programs as established by the Oregon Economic and Community Development Department and the Board. 20. To establish guidelines for the disbursement of Regional Investment and Rural Investment grant awards and to process requests for disbursements under those guidelines. 21. To take action or recommend action on contract modification requests, as determined in the policies and procedures approved by the Board. 22. To monitor grant award contracts for compliance and recommend action to the Board in the event of contract default. 23. To secure legal counsel and pursue legal remedies for contract defaults. However, the total amount expended by the Council for legal expenses shall not exceed $5,000 per biennium. B. The Board shall have the following powers and responsibilities: 1. To approve all planning documents required by the Oregon Economic and Community Development Department including but not limited to the Regional Investment Plan and the Rural Action Plan. 2. To hold all required public hearings prior to adopting the planning documents identified in 4(A)1. 3. To review and make modifications to the planning documents identified in 4(A)l as required by the Oregon Economic and Community Development Department. 4. To obligate funds apart from the compensation described in Section 5 and Exhibit A to cover the expenses incurred by Board operations including but not limited to: Board member expenses associated with attendance of conferences and training programs, Board member travel expenses, facilities rentals for meetings and hearings, conference call expenses for meetings and hearings, and Board member recognition expenses. 5. To ensure that Board members are listed as additional insureds on the public liability and property damage insurance policies issued by their respective counties. 6. To secure legal counsel from Crook, Deschutes, or Jefferson County or the State of Oregon Attorney General's Office regarding any legal issues or legal proceedings taken against the Board or any individual Board members relating to their activities pursuant to the performance of this Agreement. 7. To comply with all Regional Investment Fund and Rural Investment Fund administrative rules, all terms and conditions established in grant award contracts with the Oregon Economic and Community Development Department, and all applicable Oregon law. 8. To establish all policies and procedures for the Regional Investment and Rural Investment Fund application processes. To establish and apply criteria for evaluating Regional Investment and Rural Investment Fund applications. 10. To make grant awards from the Regional Investment and Rural Investment Funds. 11. To establish policies and procedures for entering into and amending grant award contracts. Central Oregon Intergovernmental Council Page 53 12. To determine what remedies to seek in the event of a contract default, in accordance with established grant awards. 13. To secure legal counsel and pursue legal remedies for contract defaults as directed by the Board should the Council reach it $5,000 expenditure limit on legal expenses. 4. Compensation A. These administration services are funded in part with a grant from the Oregon State Lottery through the Regional Investment Fund and the Rural Investment Fund administered by the Oregon Economic and Community Development Department. The Council shall enter into a contract with the Oregon Economic and Community Development Department to receive Regional Investment Funds and Rural Investment Funds on behalf of the Board. B. The Council shall be compensated for the administration of the 2003-2005 Regional Investment and Rural Investment Programs a total of $70,000. The terms of the compensation are as follows: The Council shall not incur any expenses under this Agreement until authorized to expend 2003- 2005 Regional Investment and Rural Investment funds by the Oregon Economic and Community Development Department. The amount of compensation shall be pro -rated and drawn in advance on July 1 and January 1 of every year. The date on which the compensation shall begin to be drawn shall be July 1, 2003, or the date on which the Council is authorized to expend 2003-2005 Regional Investment and Rural Investment funds by the Oregon Economic and Community Development Department, whichever is later. 5. Termination A. This Agreement may be terminated by written mutual consent of all parties. If this Agreement is terminated prior to the end of the Agreement period, the Council shall be reimbursed on a pro -rated basis for each month of services provided. B. This Agreement may be terminated by the Region or by the Council with 30 days written notice to all parties in the event that the Oregon Economic and Community Development Department fails to provide funding for the Regional Investment and Rural Investment Fund programs. If this Agreement is so terminated, the Council shall be reimbursed on a pro -rated basis for each month of services provided. C. If one party is suspected to be in violation of this Agreement, one of the non -violating parties shall notify all parties in writing of the circumstances leading to this conclusion. The party alleged to be in violation shall have 60 days to remedy the violation. If the violation is not remedied within the 60 days, the Agreement shall be terminated. 6. Dispute Resolution A. Unless otherwise provided in this Agreement, all claims, counterclaims, disputes and other matters in question between the Region and the Council arising out of, or relating to this Agreement or the breach of it will be decided, if the parties mutually agree, by arbitration or mediation, or other alternative dispute resolution mechanism. B. The prevailing party in any dispute arising from this Agreement shall be entitled to recover from the other its reasonable attorney's fees at trial and on appeal. Central Oregon Intergovernmental Council Page 54 7. Amendments This Agreement may not be waived, altered, modified, supplemented, or amended in any manner except by written instrument signed by the parties. Such written modification will be made a part of this Agreement and subject to all other provisions of this Agreement. 8. Severability If any provisions of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 9. Entire Agreement This Agreement constitutes the entire agreement between the parties. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Agreement. We, the below signed, are authorized by our respective organizations and the laws of the State of Oregon to enter into this Agreement on behalf of our respective organizations. We do so freely, and in good faith, and fully acknowledge all conditions, assurances, and warranties contained within and referenced by this Agreement. CROOK COUNTY LIM Scott Cooper, Judge County Court Date DESCHUTES COUNTY Michael M. Daly, Chair Board of County Commissioners Date JEFFERSON COUNTY Walt Ponsford, Chair Board of County Commissioners Date CENTRAL OREGON INTERGOVERNMENTAL COUNCIL Lo Tom Moore Executive Director Date Central Oregon Intergovernmental Council Page 55 Appendix B: Additional Management Policies Additional Management Policies: Following are some additional management policies currently effective for projects funded by the Central Oregon Community Investment Board: Protecting Investments: Prior to the draw down of grant funds, individual private business and noxi -profit grant recipients must sign and deliver to COIC instruments securing any real property, inventory, equipment, machinery, tools, furniture or fixtures purchased or improved with Regional Investment or Rural Investment dollars. 90 Day Contracting Period: All projects funded from either the Regional Investment or Rural Investment Fund programs, must sign a contract no later than 90 calendar days from the date of final project approval by the Central Oregon Community Investment Board. If the project fails to sign a contract within that period, the project will no longer be eligible for funding, unless re- authorized by the Board. Post -Grant Award Meeting: All grant recipients will be required to attend a meeting with COIC staff prior to contracting to review program requirements and contracting processes, unless the requirement is waived by COIC in writing. Meal and Travel Reimbursements: Unless otherwise specified in the project application, mileage and meals will be reimbursed and/or counted as match based on the COIC approved rate. Receipts or other acceptable documentation must be provided for meal expenses. Match Reporting Requirements: Ten percent of the total grant award shall be held back pending the final reporting of all match by the grant recipient. The funds held back shall be released no later than 14 calendar days after the date that the final match report is processed. Default Policy: For defaults because Recipient defaults in the performance or observance of any of its covenants or agreements contained in the contract or its exhibits: Action Upon identification of a compliance issue, Recipient shall be immediately notified and given 30 days to comply. If Recipient fails to comply by the deadline, Recipient shall be warned of potential default and given an additional 30 days to comply. If Recipient again fails to comply, the issue will be placed on the Central Oregon Community Investment Board agenda for consideration of a declaration of default. For defaults due to any representations made by the Recipient in any of the documents or reports relied upon by COIC to measure progress on the Project and performance by the Recipient which are untrue in any material respect: Action: Upon identification of a misrepresentation issue, Recipient shall be immediately notified and given a 15 day deadline to submit a response to the charge of misrepresentation. If the response is not sufficient to resolve the misrepresentation issue; the issue will be placed on the Central Oregon Community Investment Board agenda for consideration of a declaration of default. Central Oregon Intergovernmental Council Page 56 Appendix B: Additional Management Policies For defaults because the Recipient (i) applies for or consents to the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of all of its property, (ii) admits in writing its inability, or is generally unable, to pay its debts as they become due, (iii) makes a general assignment for the benefit of its creditors, (iv) is adjudicated as bankrupt or insolvent, (v) commences a voluntary case under the Federal Bankruptcy Code (as now or hereafter in effect), (vi) files a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, winding -up, or composition or adjustment of debts, or (vii) fails to controvert in a timely and appropriate manner, or acquiesces in writing to, any petition filed against it in an involuntary case under the Bankruptcy Code; or (d) A proceeding or case is commenced, without the application or consent of Recipient, in any court of competent jurisdiction, seeking (i) the liquidation, dissolution or winding -up, or the composition or readjustment of debts, of Recipient, (ii) the appointment of a trustee, receiver, custodian, liquidator, or the like of Recipient or of all or any substantial part of its assets, or (iii) similar relief in respect to Recipient under any law relating to bankruptcy, insolvency, reorganization, winding -up, or composition or adjustment of debts, and such proceeding or case continues undismissed, or an order, judgment, or decree approving or ordering any of the foregoing is entered and continues unstayed and in effect for a period of sixty (60) consecutive days, or an order for relief against Recipient is entered in an involuntary case under the Federal Bankruptcy Code (as now or hereafter in effect). Action: Upon identification of bankruptcy issue, Recipient shall be immediately notified and given 15 days to respond. If the response is not sufficient to resolve the bankruptcy issue, the issue will be placed on the Central Oregon Community Investment Board agenda for consideration of a declaration of default. For defaults because Recipient sells or leases any assets which it purchased with Regional Investment or Rural Investment Fund grant proceeds before the requirements of the contract are met or because the Recipient closes, sells, or leases its business or relocates its business outside of Crook, Deschutes, and Jefferson Counties before the requirements of the contract are met: Action: Upon identification of wrongful closing, sale or lease issue, Recipient shall be immediately notified and given 15 days to respond. If the response is not sufficient to resolve the issue, it will be placed on the Central Oregon Community Investment Board agenda for consideration of a declaration of default. Private Business Grant Terms and Conditions: The Central Oregon Community Investment Board will apply the following basic terms and conditions when providing grants to private businesses. Organizational Eligibility— To be eligible to receive grants from the Central Oregon Community Investment Board, businesses must be duly organized, validly existing, and in good standing under the laws of Oregon, and must be located within Crook, Deschutes, and/or Jefferson Counties. Central Oregon Intergovernmental Council Page 57 Appendix B: Additional Management Policies Grant Requirements — Private business applicants must meet the following criteria: • The maximum grant level in any project will not exceed 17% of the total project cost. Cash match must be demonstrated prior to grant award. • Attach a business Strategy. This information will be considered confidential. • Submit a Statement of Personal History which will be used to perform a credit and criminal background check. This information will be considered confidential • Grant funds cannot replace existing funding. • Create or retain at least one job per $5,000 in grant funds invested. • Project must address at least one regional priority to be eligible for grant funding. Eligible Activities — Activities eligible to receive grant funds include: acquisition of fixed assets (land, plant, equipment or other tangible asset that has a useful life lasting longer than twelve months, and is normally subject to depreciation for income tax purposes), training, and marketing. Grant funds will be used to strengthen the equity position of the business allowing the project to be financed where it would not otherwise be eligible for loan funds or gap financing. Ineligible Activities — Grant funds cannot be used for the following: • Assistance in excess of what is needed to accomplish the purpose of the project. • Distribution or payment to the owner, shareholders, or beneficiaries or members of their families when such persons will retain any portion of equity in the project or business. • The transfer of ownership unless the grant will keep the business from closing, or prevent the loss of employment opportunities in the area, or provide expanded job opportunities. • For the purpose of refinancing or restructuring existing debt. Priorities — The following criteria will be considered when determining grant recipients: • Degree to which the project addresses regional priorities. • Number of full time jobs that will be created or retained through the project. • Dollars invested per job created or retained. • Funds leveraged. • Project readiness. If selected as a finalist for grant funding, private business applicants will also be requested to provide additional information as requested by COIC such as: personal financial statements, personal income tax returns, a resume, business tax returns for the subject business and all affiliate businesses, and income statements, cash flow statements and balance sheets for the subject business. This information will be considered confidential and will be used to perform a financial analysis. The financial analysis must show that the company is viable but cannot reasonably assume more debt. Please note that COIC will take a security interest in all fixed assets including real property purchased by private or noirprofit organizations with grant funds. Also, individual private businesses receiving a grant of $50,000 or more must enter into a First Source Hiring Agreement. Central Oregon Intergovernmental Council Page 58 Appendix C: 2001-2003 Performance Measures Table 29: Central Oreaon Hiah Level and Intermediate Outenmec Hight6vel Ou coiries .. `Intermediate Outcome:,- :. . : >:.Intermediate Otatcome Tar eta: 1 Ratio of job growth to populatior A. Number of jobs created or retained. 35 jobs created or retained. growth. II. Real average wage perjob. B. Number of jobs created or retained 20 jobs created or retained above county above county average wage. average wage. III. Per capita personal income. C. Number of persons trained who earn 20 individuals who earn higher wages after higher wages after training. training. IV. Unfunded infrastructure and D. Number of public facility and Five public facilities or infrastructure projects public facilitV needs. infrastructure probects com leted. completed. V. Percent of public pavement in oor condition. E. Miles of road improved or developed. Five miles of roads improved or developed. F. Number of new users of alternative 20 new users of alternative transportation trans ortation modes. modes. VI. Access to advanced G. Number of communities with improved Three communities with improved broadband telecommunication services. broadband availability. services. VII. Fire, police and emergency H. Number of improvements to emergency/public facilities or health Three emergency/public facilities or health medical response time. services improvement projects completed. services. VIII. Percent of persons in 1. Number of low-income or disadvantaged individuals having access Ten low-income or disadvantaged individuals poverty. to su ort service ro rams. gaining access to support service programs. IX. Travel/Tourism expenditures. J. Number of improvements to cultural or Completion of one new or expanded cultural or recreational facilities. recreational facility. K. Number of persons trained who Ten individuals involved with leadership X. Level of civic engagement. undertake a new leadership role in the community, training. L. Number of stream water monitoring XI. Water quality health. sites with improved water quality Completion of one or more riparian readings. enhancement projects. Central Oregon Intergovernmental Council Page 59