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2004-1440-Minutes for Meeting December 01,2004 Recorded 12/20/2004COUNTY OFFICIAL RECO TES NANCYUBLANKENSHIP, COUNTY CLERKS VV 1004'1440 COMMISSIONERS' JOURNAL 12/2012004 04;55;29 PM 1111111111111111111111111111111111 T 04-1440 DESCHUTES COUNTY CLERK CERTIFICATE PAGE This page must be included if document is re-recorded. Do Not remove from original document. Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, DECEMBER 19 2004 Commissioners' Hearing Room - Administration Building - 1300 NW Wall St.., Bend Present were Commissioners Michael M. Daly, Dennis R. Luke and Tom DeWolf. Also present were David Givans, Commissioners' Office; Tom Anderson, Catherine Morrow and Kevin Harrison, Community Development; Mark Pilliod and Laurie Craghead and Mark Amberg, Legal Counsel; Timm Schimke, Solid Waste Department; Tom Blust and Gary Judd, Road Department; Joe Studer, County Forester; media representatives Chris Barker of the Bulletin and Barney Lerten of bend.com; and nine other citizens. Chair Daly opened the meeting at 10: 00 a.m. 1. Before the Board was Citizen Input. None was offered. 2. Before the Board was Consideration of Signature of Order No. 2004-098, Rejecting a Protest of a Proposed Award of a Contract for the Knott Landfill Rock Removal Project. Mike Daly stated that the Attorney General's model rules allow for this type of a protest. However, he still believes that the forms need to be made clearer. LUKE: Move approval. DEWOLF: Second. VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 1 of 13 Pages 3. Before the Board was Consideration of Signature of Order No. 2004-096, Declaring the Results of the November 2, 2004 General Election, Relating to County Commissioner Position #2, Sheriff, Justice of the Peace, and Formation of Bend Area Transit District. Laurie Craghead stated the order lists the actual votes for all of the candidates. LUKE: Move approval. DEWOLF: Second. VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. 4. Before the Board was Consideration of Signature of Letters Reappointing Barry Jordan, Jade Mayer and Dennis Luke; Appointing Scot Langton; and Appointing Tom Anderson as Interim Member on behalf of George Read, to the Deschutes County Audit Committee through December 31, 2006. David Givans gave an overview of the purpose and makeup of the Audit Committee, and explained the requested appointments. LUKE: Move approval. DEWOLF: Second. VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. CONVENED AS THE GOVERNING BODY OF THE 9-1-1 COUNTY SERVICE DISTRICT 5. Before the Board was Consideration of Approval of Weekly Accounts Payable Vouchers for the 9-1-1 County Service District in the Amount of $2,281.93 (two weeks). LUKE: Move approval, subject to review. DEWOLF: Second. VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 2 of 13 Pages CONVENED AS THE GOVERNING BODY OF THE EXTENSION/4-H COUNTY SERVICE DISTRICT 6. Before the Board was Consideration of Approval of Weekly Accounts Payable Vouchers for the Extension/4-H County Service District in the Amount of $1,990.57 (two weeks). LUKE: Move approval, subject to review. DEWOLF: Second. VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. RECONVENED AS THE DESCHUTES COUNTY BOARD OF COMMISSIONERS 7. CONSIDERATION of Approval of Weekly Accounts Payable Vouchers for Deschutes County in the Amount of $9,241,404.02 (two weeks). LUKE: Move approval, subject to review. DEWOLF: Second. VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. ADDITIONS TO THE AGENDA 8. Before the Board was a Public Hearing on the Final Assessment for Improvements in Kiowa Drive Local Improvement District. Gary Judd said no one in the District has contacted him. The assessment is $6,585.47 per lot, and the bid came in higher than that amount by about $500. Chair Daly opened the public hearing. Being no testimony offered, Chair Daly closed the public hearing. Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 3 of 13 Pages 9. Before the Board was a Public Hearing on the Final Assessment for Improvements in Bandley Road Local Improvement District. Gary Judd said no one in the District has contacted him. The assessment per lot was $9,976, which was very close to the original estimate. Chair Daly opened the public hearing. Being no testimony offered, Chair Daly closed the public hearing. 10. Before the Board was a Public Hearing on the Final Assessment for Improvements in Oasis Drive Local Improvement District. Gary Judd said the assessment came in at $7,001.66 per lot. This was $2,100 less than the estimate. No comments have been received at this point. Chair Daly opened the public hearing. RICHARD GRAHAM: Richard Graham, a property owner in the District, spoke. I was under the impression that the road was supposed to go to the end of the property line. I only got half a road. It comes to my driveway and that's where they quit. GARY JUDD: That's the lot on the south end, adjacent to Eagle Crest. At the homeowners' meeting we discussed this, and there was some concerns voiced by property owners on 89th and 85th that if the road went clear to the property boundary, it would be to Eagle Crest, and Eagle Crest therefore could hook up to the road. They kind of wanted to leave a buffer area to keep Eagle Crest from actually using their road for access. The right of way goes clear to the south of the property. LUKE: So Eagle Crest could hook up to the right of way anyway. JUDD: Right. The homeowners thought that might dissuade them from doing so, although Eagle Crest has never indicated they want to hook up to these roads. DALY: Is this man being assessed the same as the others? Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 4 of 13 Pages JUDD: Yes, he is. There were equal assessments in this LID. We went just to his driveway. DEWOLF: So he has access all the way to his driveway and all the way out is paved. Just turning right where it would dead-end at Eagle Crest isn't paved. JUDD: That's correct. GRAHAM: It's maybe 100 feet or 50 yards. DALY: Are you objecting to them not going the full length of your property? GRAHAM: I want to know why they didn't do it. It was supposed to be done. I may want to put in a circular driveway. LUKE: Was there a vote of the homeowners on this? I never heard of this before, why you wouldn't go all the way to the end. How can people on the other tax lots say that he has to pay the same amount of money but he doesn't get a paved road in front of his property? GRAHAM: It's halfway, to my driveway. I've got another 100 or more feet to the property line. JUDD: This is fairly common in local improvement districts. Since the property owners are paying for it, they usually look at the cost savings by not building it. LUKE: You didn't take 85th to the property line either? JUDD: No, they are both exactly the same. We went just past the driveway so that there is a turnaround at that location for people going down to the dead end. DALY: You have a circular driveway? Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 5 of 13 Pages GRAHAM: Maybe I would want to make one. DALY: I've got to say that I don't know that this is the right way to do this, especially if he has to pay the same as everyone else. DEWOLF: The pavement is for the road that exists. He has full access to the road to the property. GRAHAM: In the contract it was supposed to be the whole road. JUDD: The road description does describe the entire length of 89th, 85th and 83rd, and Antler. DALY: I think he has a valid point. LUKE: It depends. Did you go to the community meetings? GRAHAM: I went to them, and don't think this was discussed. JUDD: We had two meetings, and it was discussed both times. There were some people on 85th who were very adamant about wanting the separation from Eagle Crest. There is one property owner who has an irrigation system in the right of way, and he didn't want the road to go on out. He spoke at the meeting. DEWOLF: So we're allowing people who encroach on the public right of way with their private irrigation system to dictate how far the road will be paved? JUDD: It was input we received at the hearing. DEWOLF: What can be done at this point? If you finish paving, do you reassess all the property owners? Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 6 of 13 Pages DALY: He's paying the same as everyone else. He deserves to have it. GRAHAM: I don't care now if it gets paved, but I don't think I should have the same assessment in this situation. DEWOLF: Don't people pay based on the frontage of the lot? JUDD: We do an equal assessment of all the lots, with one exception of a 40 -acre lot where three assessments are being paid. He can divide his lot into three. LUKE: The question is, do you want it paved or a reduction in your assessment? GRAHAM: I'd just as soon have a reduction in the assessment. LUKE: That would be difficult, because it would raise everyone else's. I'd be more willing to have it paved. TOM BLUST: Just a clarification — I don't believe where the road ended was called out in the plans. JUDD: It was in the construction plans. Those plans were available for the public to review if they wanted. They got a letter stating that. The order that the Board approved that initiated the LID just describes the roads in there to be improved. BLUST: When we do the engineer's report and it is brought to the Board, it describes the boundary of the LID, which would include all of the lots, and it describes in general details the improvements to be made — which roads are included and so on. What happens when we get into the design process, typically there are small stub -out sections or other roads like this one where there are some calls that are made from an engineering standpoint as to how we will do that improvement. In all of those there are calls that have to be made. Like Gary said, it was discussed in the meetings prior to the vote as to where the boundaries of the actual construction would be. Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 7 of 13 Pages LUKE: At both meetings they were told that this road wouldn't be paved clear to the end? GRAHAM: No, I never heard that in either meeting. JUDD: We originally approached the property owners at the meeting that if they would dedicate some additional right of way, we could have vacated the portion we are talking about, and it would have been possible to build a cul de sac bulb. This was our engineering suggestion, but the property owners didn't want to do the dedications so we could vacate the unused portion of right of way. DEWOLF: Which would have then prevented Eagle Crest from attaching to it. JUDD: That would have solved their problem, and the turn around problem also. LUKE: What would it cost to finish paving the road? BLUST: If we are doing a large contract, it is typically about $45 or $50 per lineal foot of roadway. LUKE: What you will be asking on Monday is that we approve the final assessment. Until we approve that, this is not the final assessment. JUDD: One suggestion is that if the Board chose to vacate that area that is not built upon, he would gain 100 x 30 feet, 300 feet, which is a pretty substantial amount of land. He would benefit by that. LUKE: Does that create any problem for future development out there? If you look at that map, there's only one way out. DALY: From the maps it appears that Eagle Crest has already got their roads established and the chance of them changing this is slim. Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 8 of 13 Pages The Commissioners suggested that Mr. Graham, Mr. Blust and Mr. Judd discuss the situation further and come to the Board on Monday, December 6 with a proposed solution to the problem. No other testimony was offered. Chair Daly continued the public hearing to Monday, December 6. 11. Before the Board was Consideration of Signature of Letters Accepting the Resignation of Linda Callaway, and Appointing Margie Schueremann to the Board of Special Road District No. 8, through December 31, 2005. LUKE: Move approval. DEWOLF: Second. VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. 12. Before the Board was Consideration of First and Second Readings and Adoption, by Emergency, of Ordinance No. 2004-022, Addressing the Passage of State Ballot Measure 37. DEWOLF: I have a question, after reading through this. I don't remember seeing anything in here that made any reference that qualified appraisers be used. After a brief discussion, Mark Pilliod pointed out that there is a definition on page 1 of the ordinance that refers to licensing. IS0 .114 I spoke with staff and Legal Counsel on this, and although it's not perfect, it has to be done in a short period of time. Perhaps there will be time in the future to revisit it. Staff has done a good job given the time they had to handle it. 107,111 i I have a couple of questions. On page 2, under application, the second line refers to "shall" when seeking compensation. Should the word "may" be used instead? Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 9 of 13 Pages PILLIOD: The purpose of the established process is to set out all the requirements of that process. I believe that the discussion about the way that Measure 37 is written perhaps emphasizes too much that a person need not pursue a local process as a prerequisite of filing a claim in court. That is the current state of the law. We can't force them to go through a locally -enacted process. But if they do, then this is part of that process. The correct word in that sentence is "shall". DALY: There is a typo on page 7, some words are left out in G (h). PILLIOD: It should read, "alleged by the claimant". DALY: Does anyone in the audience wish to speak? PHIL PHILIBEN: I'm executive director of the Friends of Deschutes County. We don't think 250 feet is enough for notification purposes. We feel it should be at least 1,000 feet. LUKE: We don't have to any. There is a cost attached to notifications. PHILIBEN: The claimant should have to pay it. LUKE: The claimant doesn't have to pay anything. They don't have to follow this process. They can come in with an 8-1/2 x 11 piece of paper and say they have a claim they want us to process. In some things we have to include at least twenty property owners in the notification. It's a lot of work. Community Development is going to be buried in work due to the time it takes to do the research. We thought this was a place to start. If it proves unworkable or creates too many problems, we're open to review it at any time. We appreciate your concern. We had the same concern. Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 10 of 13 Pages PHILIBEN: The other question I have is, if someone has EFU land and their great- grandfather homesteaded it, and they decide they want to build an auto wrecking yard, which is a commercial use, will the County charge them back property taxes? LUKE: If you take it out of EFU, that's the standard. PHILIBEN: There's nothing in here that says that. There are rules under ORS that say that when you take property out of being specially assessed, you then have to pay back taxes. If it is EFU, it's ten years if it has been deferred. Again, it depends on the use that is being applied for. If they are applying for a farm dwelling, only that farm dwelling part might be affected. We don't know yet. LUKE: If you are the third generation and you take possession in 1985, it only goes back to when you took possession. There are some other things that happen if you go for compensation, but use is different. CRAGHEAD: The use only goes back to when it was acquired. Compensation goes back to the relative. TOM ANDERSON: I received an e-mail just a little while ago from 1000 Friends of Oregon, which can be submitted into the record. CRAGHEAD: It is basically just general information about Measure 37 and what they feel the counties can do. It's not specifically to this ordinance. DEWOLF: Move first and second readings by title only, declaring an emergency. LUKE: Second. Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 11 of 13 Pages VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. Chair Daly then conducted the first reading of Ordinance No. 2004-022 by title only, declaring an emergency. Chair Daly then conducted the second reading of Ordinance No. 2004-022 by title only, declaring an emergency. DEWOLF: Move approval of Ordinance No. 2004-022. LUKE: Second. VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. 13. ADDITIONS TO THE AGENDA. A. Before the Board was a Discussion of the County's Out of State Travel Policy. Commissioner Luke stated that if someone is going to put the County at additional risk by using a private vehicle out of state, the paperwork should be reviewed by the County Administrator. Commissioner DeWolf agreed. Mark Amberg said that out of state travel applications are to be approved by the Board already. Risk Management can be added to the review process if other than regular public transportation is to be used. This will be discussed further at a future Board meeting. B. Before the Board was a Discussion of the Delta Airlines Proposal. Commissioner DeWolf stated that he reviewed the documents associated with the request for funds to help bring jet airline service through Delta Airlines to Redmond. He said he is comfortable that the way the funds would be handled is secure. Having Delta serve this area could bring down the cost of travel and could enhance the business environment in the area. Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 12 of 13 Pages Commissioner Daly added that the funds can't be lost; the contributions will be placed in a bank account and won't go directly to Delta. Commissioner Luke stated that he feels it is appropriate to bring them here. This will benefit the entire region LUKE: Move approval of a donation of $2,000 towards this effort. DEWOLF: Second. VOTE: DEWOLF: Yes. LUKE: Yes. DALY: Chair votes yes. Being no further discussion, the meeting adjourned at 11:25 a.m. DATED this 1St Day of December 2004 for the Deschutes County Board of Commissioners. ATTEST: Recording Secretary Attachments Dennis R. Luke, �orimi sioner Tom DeWolf, Commissi ner Exhibit A: Letter from 1000 Friends of Oregon dated November 30, 2004 regarding Measure 37 (4 pages) Exhibit B: Backup documentation relating to the Delta Airlines Travel Bank (5 pages) Minutes of Board of Commissioners' Meeting Wednesday, December 1, 2004 Page 13 of 13 Pages A 1000 FRIENDS OF OREGON __ 90� 534 SW Third Avenue, Suite 300 • Portland, OR 97204 • (503) 497-1000 • fax (503) 223-0073 • www.fnends.org Southern Oregon Office • 33 North Central Avenue, Rm. 429 - Medford, OR 97501 - (541) 245-4535 • fax (541) 776-0443 Willamette Valley Office • 388 State Street, Suite 604 • Salem, OR 97301 • (503) 371-7261 • fax (503) 371-7596 Lane County Office • 120 West Broadway • Eugene, OR 97401 • (541) 431-7059 • fax (541) 431-7078 Central Oregon Office • P.O. Box 8813 • Bend, OR 97708 • (541) 382-7557 • fax (541) 382-7552 November 30, 2004 Deschutes County Board of Commissioners 1300 NW Wall Street Bend, OR 97701 Dear Commissioners: 1000 Friends of Oregon believes it is important for local governments to establish an open, public process for handling claims for compensation or waiver made under Measure 37. While many provisions of the Measure are murky, we believe that some things can clearly be stated about the content of local procedures, as follows. Generally: Establish a Public Process The compensation claims process can and should be an open process. The Board of Commissioners should ensure that the claim procedures involve public notice and review and an opportunity for testimony by interested parties. Measure 37 declares that compensation claim decisions are not land -use decisions. Hence, they are not subject to ORS 197.763's provisions for notice and appeal. But that does not bar local governments from using open, public review procedures -- and they should. If one landowner can file a claim for compensation or a waiver of land -use regulations, then his or her neighbors and local taxpayers should know about it in advance, and they should be able to participate in the decision-making. A public review process for Measure 37 is not about "thwarting the will of the voters" or trying to interfere with the application of this new law. Rather, it is about ensuring fairness and effectiveness in the compensation process. Section 1: Restrict & Reduce Measure 37 requires that the land use regulation must both (1) restrict the use of private real property and (2) have the effect of reducing its fair market value as a basis for a Exhibit 10-1 Page _L__ of _�- claim. Therefore, a local ordinance should require that a landowner making a Measure 37 claim demonstrate that the land use regulation has both restricted the use and reduced the value of their property. Section 2: Reduction in Fair Market Value As we read the measure, the valuation of "the reduction of fair market value" should be based on what the property would be worth if a particular regulation had not been enacted or enforced at all, rather than only not applied to the claimant's property. This interpretation is consistent with the language and intent of the measure, which seeks to prevent harm caused by regulation, not to reward land speculation. A claimant's property value should not be bolstered by the scarcity effect created by application of the regulation for which the claimant seeks compensation to the claimant's neighbors' property. To do so would impart additional value upon the claimant's property, which is inconsistent with the presupposition that the regulation has reduced claimant's property value. Section 3: Exemptions Compensation may not be paid for, nor may a governing body waive, a land use regulation that is required to comply with federal law. Sections 5 and 7: Written Demand and Local & State Procedures The Measure provides that claimants must make a "written demand" for compensation, and that local and state governments may adopt procedures for processing claims, as long as those procedures do not act as a prerequisite to the claimant's filing a compensation claim in circuit court. We believe that local governments may, as a substantive matter — not procedural — require certain information from a claimant in order to ensure that the claim qualifies under the Measure. This information should include, at least: • Description of the private real property for which the owner is claiming compensation, including street address and a legal description or tax assessor's description • Name, address, and phone number of all owners with an interest in the property, and a description of each ownership interest, including trustees, lien holders, and lessees • Date claimant acquired ownership of an interest in the real property and proof of that ownership • Title report, including title history, current within 30 days prior to claim date, verifying ownership interest(s) Exhibit Page Q of 4 • If claim based on date family member acquired property, then documentation sufficient to establish familial relationship and familial ownership • Copies of any covenants, conditions, and restrictions (CC&Rs) or other encumbrances on the real property • Identification of the specific land use regulation(s) that restricts the owner's use of the real property for which the owner is claiming compensation • Statement showing the manner in which, and the extent to which, the regulation(s) restricts the use of the real property and has the effect of reducing the fair market value of the property • The amount of the claim based on the reduction in fair market value • Statement of the resolution sought by the owner, such as monetary payment, modification of the regulation, or waiver of the regulation • Signature of the claimant If the claimant does not submit sufficient written information to demonstrate that their claim qualifies under Measure 37, then we believe a local government can reject the claim, and that local procedures should state this clearly. Section 8: Waiver According to the plain text of Measure 37, Section 8, only "the governing body responsible for enacting the land use regulation" may elect to "modify, remove, or not to [sic] apply " that regulation. Any local procedure should be clear that only the governing body can waive a land use regulation. In circumstances where a claim is based upon a familial relationship as defined in the Measure, compensation can be claimed for diminution of value by regulations enacted after acquisition by the owner or family member of the owner. However, under Section 8 of Measure 37, a jurisdiction can only waive or modify a regulation enacted after the current owner inherited or otherwise acquired the property. It cannot waive a regulation enacted after the family member (say, grandfather) acquired the property but before the current owner acquired it. This should be clearly stated in the implementing ordinance to avoid confusion and unrealistic expectations on the part of claimants. Waiver of a land use regulation applies by the terms of the Measure only to the current owner of the real property. Local Ordinances Implementing State Requirements In circumstances where local ordinances implement state requirements, the local government cannot waive the local regulation and let development proceed unless a waiver is also obtained from the state. Nor can local government waive regulations enacted by the state or other political entities. Indeed, Section 8 of Measure 37 Exhibit A Page of L4 authorizes only "the governing body responsible for enacting the land use regulation" to waive the land use regulation at issue. Some jurisdictions have adopted or are considering language such as the following: "It is the policy of the County to accept filing of claims derived from discretionary legislative acts and policies of the county or from regulatory actions arising out of enforcement of those acts and policies. Whenever such acts derive from non -discretionary enactment or enforcement of the laws, regulations or decisions of the State of Oregon or the United States of America, it is the policy of the county to deny such claims for lack of jurisdiction. "In recognition that all land -use planning authority of the County ultimately derives from the laws and policies of the State of Oregon it is the policy of the county to advise individuals seeking compensation under this ordinance to file simultaneous claims against the State of Oregon in accordance with procedures established by law. "In addition, the County shall attempt to notify all other governmental entities that, in the opinion of the County, have an interest in resolution of the claim." Donations for Compensation Because the waiver of a regulation can sharply reduce surrounding property values and reduce an area's quality of life, the county should allow neighbors to "buy-out" a Measure 37 claim when the government cannot. Some jurisdictions have adopted or are considering language such as the following: "The county may accept donations of funds in order to pay any compensation ordered by the board. If the funds donated are insufficient to fully pay the compensation ordered, the county shall return the donated funds within 2 years following the date the applicant(s) submitted the application for compensation or waiver." Thank you for you attention to these views. Sincerely, Carol Macbeth Central Oregon Advocate 1000 Friends of Oregon Exhibit A Page %A of �} Airline Travel BankTM Redmond — Salt Lake City Freguently Asked Questions: What is the proposed service out of Redmond? Delta Air Lines will provide two daily round trip flights between Redmond and Salt Lake City in 2005 using a 50 seat Canadair Regional Jet CRJ-200. Exactly how does the Airline Travel Bank work? Companies and individuals that have pledged support will be asked to execute an Airline Travel BankTM (ATB) Partner Agreement and deposit the pledged amount in Columbus Bank & Trust. The Central Oregon ATB account will be held in the name of COAST or EDCO and individual sub accounts will be activated for each Travel Bank Partner. ATB Partners are issued one or more credit cards (VISA) that can be used to access their deposited funds solely for the purpose of purchasing tickets on Delta Air Lines, Delta Connection, and flights connecting to Delta's code -share partners. How do you use the Travel Bank card? ATB cards are designed to work much like a checking account debit card. Funds are withdrawn from your account on air travel purchases until your balance is depleted. The card can be used at participating travel agencies and at all Delta sales points such as reservation call centers, online websites and ticket counters. Columbus Bank & Trust will provide a monthly statement with your account summary and transaction detail. Can the ATB card be used for other travel services? Travel Bank funds can only be used for purchasing air travel on Delta Air Lines. It cannot be used to purchase travel packages, rental cars, hotels, etc. Charges associated with booking air travel such as website fees or agency service charges will not be deducted from your ATB fund. If charged to your account, booking fees will be billed back to the ATB Partner at the end of the month with your monthly bank statement. Columbus Bank & Trust will assess late charges for any unpaid fee balances. Is the Travel Bank only good for Delta flights originating in Redmond? Your Travel Bank card can be used for any flight on Delta Air Lines or Delta Connection, anywhere in the country. For the Eugene ATB the Delta Connection (DL) team of regional carriers included SkyWest, Comair, Atlantic Coast, Atlantic Southeast and Chautauqua Airlines. Prior to holding small group meetings we will verify this list of carriers. It can also be used for international travel on the following code -share carriers as long as the trip originates in the United States on Delta Air Lines or Delta Connection: ACES, Air Jamaica, Avianca, China Airlines, China Southern, El Al, Flybe, Royal Air Marco, SNCF French Rail, and South African Airways. Exhibit Page __L_ of F= How long do I have to use my Travel Bank fund? You can begin using your ATB (VISA) card to purchase travel immediately upon receipt from Columbus Bank & Trust. You will have one year from the date of initial service in Redmond to use the balance of your account. Any funds remaining in the ATB account at the end of the one year period will be refunded to your company in the form of Delta Air Lines air travel vouchers. These vouchers are good for an additional three months. Are there incentive agreements for Delta's frequent flyer program? Delta will offer limited cross-over status in the SkyMiles frequent flyer program to all ATB Partners who have obtained preferred status in the frequent flyer programs of the incumbent carriers serving the Redmond Airport. The cross-over program involves the exchange of comparable status and the benefits received as a preferred customer. There is no exchange in actual mileage. ATB Partners and their employees who have obtained Alaska Airlines MVP Gold, United Airlines Premier Executive 1 K and Premier Executive status will be crossed -over to Delta SkyMiles Gold Medallion status. All other participation levels from incumbent carrier frequent flyer programs will be crossed -over to the SkyMiles Silver Medallion status. The cross-over program will be in effect through the term of the ATB program. Is there a minimum pledge? Yes. The minimum is $2,000. But don't worry, there is no maximum. What happens if Delta discontinues its Redmond air service before one year is up? All funds in this program are protected, and any unused amount in your account will be refunded to you if Delta exits the market, is purchased by another airline, or modifies its service within the one-year period. Why should I join the Travel Bank if I do not have business in Salt Lake City? Salt Lake International Airport is Delta's third-largest hub. From Salt Lake City, passengers can make direct connections (departures within three hours) to over 60 destinations on Delta Air Lines. Delta's commuter partner, Delta Connection/SkyWest has 156 additional departures. Other airlines such as AeroMexico, America West, America West Express, American Airlines, Continental, Frontier, jetBlue Airways, Northwest, Southwest, United Airlines and United Express offer 450 scheduled daily flights from Salt Lake City. What is our financial goal for the Central Oregon - Delta Air Lines Travel Bank program? Delta Air Lines has completed their evaluation of the Central Oregon market. However, they want to see tangible commitment of the business community to support the service. For Delta to begin eastbound service to Salt Lake City we need a broad-based financial commitment of $500,000 from no less than 100 businesses. Support for the air service initiative will capitalize on the communities' interest in air service that supports business and economic activity, and the airlines interest in the business traveler. Do not wait until the last minute to get involved. We have a limited time to respond to Delta Air Lines. Make your pledge today. Exhibit Page ofrJ Delta Air Lines Redmond — Salt Lake City Service Fact Sheet • Service scheduled to begin May 1, 2005. • Flights on 50 -seat, Canadair Regional Jets operated by SkyWest Airlines. • Two daily, non-stop, round-trip flights between Redmond and Salt Lake City. • Proposed schedule: Redmond – Salt Lake City Salt Lake City - Redmond Depart Arrive Depart Arrive 6:45am 9:15am 11:50am 12:25pm 1:10pm 3:40pm 8:35pm 9:10pm • From Delta's hub in Salt Lake City, passengers can make direct connections (departures within three hours) to 64 destinations. Direct service is offered to the following cities: Albuquerque, NM Great Falls, MT Philadelphia, PA Anchorage, AK Helena, MT Phoenix, AZ Atlanta, GA Honolulu, HI Pocatello, ID Billings, MT Houston Inter., TX Portland, OR Boise, ID Idaho Falls, ID Rapid City, SD Boston, MA Jackson, WY Reno, NV Bozeman, MT Kalispell, MT Sacramento, CA Butte, MT Kansas Citv, MO San Diego, CA Calqarv, Canada Las Vegas, NV San Francisco, CA Casper, WY Los Angeles, CA San Jose, CA Cedar City, UT Minneapolis, MN Santa Barbara, CA Chicago O'Hare, IL Missoula, MT SeattlefFacoma, WA Cincinnati, OH New York JFK, NY Spokane, WA Cody, WY New York Newark, NJ St. George, UT Colorado Springs, CO Oakland, CA St. Louis, MO Dallas/Ft. Worth, TX Oklahoma City, OK Sun Valley, ID Denver, CO Omaha, NE Tucson, AZ Detroit, MI Ontario, CA Tulsa, OK Elko, NV Orange County, CA Twin Falls, ID Eugene, OR Orlando, FL Vancouver, Canada Fresno, CA Palm S rin s, CA Washington Dulles, DC Grand Junction, CO Pasco, WA Washington National, DC • Salt Lake City is Delta's third largest hub with 125 daily flights. Its commuter partner, SkyWest Airlines, has 156 additional departures. Other airlines — AeroMexico, America West, America West Express, American, Continental, Frontier, jetBlue, Northwest, Southwest, United Airlines and United Express — offer 450 scheduled daily flights from the Salt Lake City International Airport. • Incentive package: 4 Revenue guarantee - $500,000 4 Marketing support program - $450,000 Airline Travel Bank - $500,000 Only one component of the package remains incomplete and that is the Travel Bank portion provided by the local business community. • 34.7 percent of the Central Oregon's air travelers drive to Portland for their flights. More than thirty percent of those travelers are heading east, so travel via Salt Lake City is definitely an option. Exhibit Page �`- of _ Non -Binding Air Service Pledge Form Delta Air Lines �, NOTE: All pledges are due by December 10th. In an effort to strengthen the area's case for new air service, local businesses and individuals are being asked to support new air service through financial participation in the Central Oregon - Delta Air Lines Airline Travel Bank"' (ATB). The terms and conditions of this arrangement will be finalized in the near future. In the interim, commitments are being sought based on the following: Delta Air Lines has indicated that it is close to making a final decision regarding initiating twice daily, non-stop regional jet service between Redmond Municipal Airport and Salt Lake City International Airport in 2005. Prior to making a final service decision, Delta Air Lines needs tangible commitment that the community supports the proposed service. ATB pledges represent that commitment. Once the community has reached its ATB goal these completed pledge forms will be presented to Delta Air Lines to confirm commitment for the contemplated air service. • Prior to start-up of the proposed service, companies and individuals that have pledged support will be asked to execute an ATB Partner Agreement and deposit the pledged amount in Columbus Bank & Trust (The Central Oregon ATB account will be held in the name of COAST or EDCO with sub accounts for each ATB Partner). • Columbus Bank & Trust will issue ATB Partners credit cards (VISA) that can be used to access the deposited funds solely for the purpose of purchasing tickets on Delta Air Lines, Delta Connection, and flights that connect to Delta Air Lines' international code -share partners. Monthly credit card activity statements will be provided by Columbus Bank & Trust Company to each ATB Partner. • The ATB account balance is non-refundable, and must be used 1 -year from date of initiation of air service. Any unused portion of the pledge will be refunded to the company/individual in the form of Delta Air Lines air travel vouchers that are valid for an additional 3 months. • Air travel tickets will be purchased the same as any other air travel transaction with fares, restrictions, etc., applied as usual. • A provision in the agreement will provide a refund of any unused funds if Delta Air Lines exits the market, is purchased by another airline, or modifies service within the I -year period. • Exact terms and conditions of the final agreement between the community and the airlines mentioned herein will be made available prior to execution of ATB Partner Agreements. Company/Individual Name: Represented By: Address: Phone: Signature: E -Mail: Date: (I) (My company) pledge/pledges $ (minimum $2,000) to the Central Oregon — Delta Air Lines ATB associated with the service described above. All pledges due by December 10'hl You may return this form to Economic Development for Central Oregon by Fax at (541)-388-6705. For additional information, phone or email EDCO at (541) 388-3236 or roger(&edforco.org. Exhibit is Page --4— of _5 Economic Development for Central Oregon and the Redmond Airport would like to thank the businesses that helped us reach our $500,000 Airline Travel Bank goal which will provide the region with two daily round trip flights on Delta Airlines between Redmond and Salt Lake City on a 50 seat regional jet. Accent Optical Technologies Advanced Power Technology American Licorice ATL Communications Bend Tarp & Liner BendBroadBand Black Butte Ranch Brightwood Corporation Brooks Resources Bryant, Lovlien & Jarvis, P.C. Carlson Signs Central Oregon Association of Realtors Central Oregon Builders Association Central Oregon Builders Inc. Central Oregon Community College City of Bend City of Redmond Clear Choice Coldwell Banker First Resort Realty Compass Commercial Conde Appraisal Associates COVA Crook County Eagle Crest Resort Economic Dev. for Central Oregon El Pescador Mexican Restaurant Entrada Lodge Fuqua Homes GL Suite, Inc. Hayden Enterprises, Inc. Hickman Williams & Associates Holland Dahlen & Brooks, LLP Inn of the Seventh Mountain Innoprise Software Joe A. Lochner Insurance Agency, Inc. MediSISS Mid Oregon Federal Credit Union Midstate Electric Cooperative Inc. Mountain High Aviation Oxygen Mt. Bachelor Neal Huston & Associates Architects Inc. Northwest Premier Foods LLC Northwest Professional Management, Inc. Obsidian Financial O'Keeffe's Company Redmond Chamber of Commerce/ CVB ResortQuest Sunriver Rock Springs Guest Ranch Rocky Mt. Products Ruff Wear, Inc. Sage Insurance Center Shaw Resources St. Charles Medical Center - Redmond Summit Accommodators Sunriver Realty Sunriver Resort TBD Advertising The Bulletin The Mandala Agency Thornburgh Resort Company TMC Properties, LLC Trout Realty UNICEL William Smith Properties Xpress Lube Beno/ Redmond Delta flights begin as soon as March 15th, 2005. Call EDCO at 388-3236 for more information. ECONOMIC DEVELOPMENT FOR CENTRAL OREGON Exhibit Page _on of r=