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46-21-Minutes for Meeting March 23,1983 Recorded 3/30/1983`VOL 46 PAGE 21 DESCHUTES COUNTY BOARD OF COMMISSIONERS S MARCH 23, 1983 REGULAR MEETING 13 MAP tit) - i C . s omm 15 A.M. Chairman Abe Young called the meeting to order at 10 sioner Tuttle and Commissioner PranteAUhrj ik6p es p n . ~i i CO ` L Amendments to ndments as listed on m e Chairman Young read aloud the a the Agenda the sheet attached to the agenda. An additional amend- ment was a Software License for the Road Department Computer for signature. Continuation Dave Hoerning, County Engineer, requested that this be of lst St., continued for two weeks, noting that the only street A & E Streets that had not yet received a Board decision was First Vacation hear- Street. The Board granted the request. ings Discussion re- Patrick Gisler had presented the Board with a letter garding Odin outlining the situation. He stated that it was their Crest Estates understanding at the time the LID was being formed that LID they would pay the rate of interest that the bond sold for, but had agreed in advance to pay up to 12% since no one knew what the rate would be. He stated that they are trying to sell lots which would help pay the assessments, but stated that he did not think they would be successful in selling these lots if the assessment is required to be paid at closing. He requested that the buyer of the lot have one year to make up back assess- ments. At this time, assessments for the LID are in arrears. Rick Isham, County Counsel, responded that this LID was processed in 1981 along with eight other LID°s that were all set up in an identical manner. At that time, Dan Van Vactor was the attorney handling the matter for the developers of Odin Crest Estates. At that time, the interest rate was 20-1/2%, so the 12% interest rate offered through the LID process was very advantageous for the developers. No payments have been made since the first two payment dates on this LID, so the county has been borrowing money to pay for these, so at this time the county is in a negative cash flow situation on this, because the funds used to pay the assessments could be earning interest. The interest rate had been set at 12% at the time of the LID as required by law, and at that time the developer was not told that they would pay the interest rate of the bond sale. The agreement signed by the developer clearly states the rate of interest to be paid is 12%, and the county is not empowered to change this. If these payments are not made by April 1 they will be in default for nonpayment. With respect to allowing the purchaser to assume the assessment, any individual assuming an LID obligation MARCH 23, 2983 MINUTES: PAGE 1 f VOL 4) ?AcE should be able to carry it in arrears as any other applicant would. Because of the cost to the county, they would like to get as much cash as possible to satisfy the interest. If a person did want to buy a lot and wants to assume the arrears assessment and they make the April °81 due payment, it would take that lot out of foreclosure in April °83. Mr. Gisler stated that it is his understanding that they will be required to pay additional interest over and above the assessment because they are in arrears. Mr. Isham responded that there was no interest on the interest, but they are continuing to accrue interest on the unpaid assessments. MOTION: TUTTLE moved that the Board not revise the interest rate on Odin Crest Estates LID. PRANTE: Second. VOTE: UNANIMOUS APPROVAL. MARCH 23, 2983 MINUTES: PAGE 2 Discussion re- The Board had received a memo from John Andersen, Dir- garding 15-day ector of Community Development, outlining this proposed Appeal Period policy. Chairman Young read the memo aloud. MOTION: PRANTE moved to adopt the policy as presented. TUTTLE: Second. It was noted that this is for all applications. VOTE: UNANIMOUS APPROVAL. Acceptance of Mr. Isham explained that this puts a reversionary clause J-Bar-J Bylaws on the deed to their premises. The history is that the Amendment property originally had a reversionary interest to the county and J-Bar-J requested that this be lifted for the purpose of financing. The property was then transferred to J-Bar-J Properties, Inc. which was a different corp- oration than the boys ranch. When this was discovered they discussed it with their attorney and it was felt that a bylaws change should be adopted to provide the reversionary clause. It is now before the Board for their approval. MOTION: TUTTLE moved to accept the bylaws amendment prepared by J-Bar-J Properties, Inc. to include the reversionary provision. PRANTE: Second. VOTE: UNANIMOUS APPROVAL. Bozarth LID Mr. Isham stated that there had been some questions Complaint raised by some of the property owners in regard to the assessments on this LID so Dave Hoerning, County Engi- neer, researched this and compiled a report now before the Board. Mr. Hoerning recommended an adjustment of the assessments because of some errors in the acreage amounts upon which the original assessments were based. Mr. Hoerning explained what these errors were, and supplied the correct information. This involves three le VOL 41) FACE V property owners. Mr. Isham stated that an order is not necessary, but they will adjust the records. MOTION: PRANTE moved to adopt the recommendation of the Public Works Department. TUTTLE: Second. It was noted that this pertains to the Dry Canyon LID. VOTE: UNANIMOUS APPROVAL. Juvenile De- Mr. Isham requested that this be continued for one week. tention Agree- The Chairman granted the request. ment Ordinances 83- MOTION: TUTTLE moved that the 031 & 83-032, of Ordinances 83-031 & to Prescribe PRANTE: Second. Infractions VOTE: UNANIMOUS APPROVAL. Chairman Young so read. MOTION: TUTTLE moved to adopt PRANTE: Second. VOTE: UNANIMOUS APPROVAL. MOTION: TUTTLE moved to adopt PRANTE: Second. VOTE: UNANIMOUS APPROVAL. first and second readings 83-032 be by title only. Ordinance 83-031. Ordinance 83-032. Order 83-113, Mr. Isham explained that this was to correct an error in Amending Order the legal description contained in Order 82-237. 82-237 to Cor- MOTION: TUTTLE moved to adopt Order 83-113. rect a Legal PRANTE: Second. Description VOTE: UNANIMOUS APPROVAL. Contract Modi- Chairman Young read aloud the cover letter from the fication with State Mental Health Division explaining this. Mental Health MOTION: PRANTE moved to approve the contract modifica- Division tion with the Mental Health Division as pre- sented by Chairman Young. TUTTLE: Second. VOTE: UNANIMOUS APPROVAL. OLCC License Before the Board was an OLCC License application for the Application Sundown South Saloon. The filing fee has been paid and it has been approved by the Sheriff. MOTION: TUTTLE moved to approve the license. PRANTE: Second. Chairman Young noted there have been complaints about this establishment, but the sheriff recommended it be approved and they will watch it closely. VOTE: UNANIMOUS APPROVAL. Meeting notice Chairman Young announced the Board would meet the next day at 1:30 to discuss the budget. Software Lic- Mr. Isham stated that this agreement prevents the county ense Agreement from selling or giving away this company's software program for the Road Department computer. MARCH 23, 2983 MINUTES: PAGE 3 r VOL 4D FAGS L4 MOTION: TUTTLE moved to sign the license agreement for the software. PRANTE: Second. VOTE: UNANIMOUS APPROVAL. Being no further business, the meeting was adjourned to executive session. DESCHUTES COUNTY BOARD OF COMMISSIONERS 0-411 ALBERT A. YOUN CHAD, AN - 4 ' - LO S RISTOW PRANTE, COMMISSIONER LAURE CE A. TUTTLE, SSIONER /ss MARCH 23, 2983 MINUTES: PAGE 4