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2007-33-Minutes for Meeting January 08,2007 Recorded 1/17/2007DESCHUTES COUNTY OFFICIAL RECORDS ~oo~~~~ NANCY BLANKENSHIP, COUNTY CLERK J COMMISSIONERS' JOURNAL 01/17/2007 12:43:36 PM 2007-33 Do not remove this page from original document. Deschutes County Clerk Certificate Page { If this instrument is being re-recorded, please complete the following statement, in accordance with ORS 205.244: Re-recorded to correct [give reason] previously recorded in Book or as Fee Number and Page C3 { 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 BUSINESS MEETING - LAND USE DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, JANUARY 8, 2007 Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend Present were Commissioners Michael M. Daly and Tammy Baney; Commissioner Dennis R. Luke was out of the office. Also present were Tom Anderson, George Read and Catherine Morrow, Community Development Department; Mark Pilliod and Laurie Craghead, Legal Counsel; media representatives Barney Lerten of News Channel 21 and Keith Chu of The Bulletin; and four 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 a Hearing and Consideration of Signature of Order No. 2007-005, a Measure 37 Claim (Claimant: Stearns). 3. Before the Board was a Hearing and Consideration of Signature of Order No. 2007-007, a Measure 37 Claim (Claimant: Stearns). Tom Anderson gave an overview of the two claims. He explained the chain of title, from Harry Stearns to his wife Crystal in a benefit trust, and then to the three daughters as the Stearns Company LLP, a limited partnership. He said the law is clear; per the staff report, properties acquired by a partnership are the property of the partnership, not of the individuals within the partnership. Therefore, the acquisition date specified in the Order is November 1995. Minutes of Board of Commissioners' Meeting - Land Use Monday, January 8, 2007 Page 1 of 8 Pages In regard to unique provisions, both properties now extend into the new City of La Pine; this is a new situation not yet encountered by Deschutes County in Measure 37 claims. It may be necessary for the claimant to acquire or receive a waiver from the City as well. Regarding the flood plain zone, the County does not waive any regulations that are related to health and safety, and it is believed that the flood plain zone is based on safety, limiting the ability to construct residential structures in that area. There is a minimum lot size of 80 acres in the flood plain zone, as it may be possible to subdivide, although Code specifies no new parcels can be created that are completely in the flood plain. One could be created with high and low areas. Mark Pilliod stated that inasmuch flood plain maps were essentially determined by a federal agency, it might be necessary to receive a waiver from the federal agency as well. Jeff Wilson, attorney with Miller Nash, 446 NW 3`d St. #230, Prineville 97754, representing the claimants, said that he had an opportunity to review the staff report and speak with Mr. Pilliod. As a result of this discussion, he prepared supplemental information for the record. (A copy is attached.) He said he agrees that the City of La Pine issue is a new wrinkle. The application was filed with Deschutes County and the State; on that date those were the only land use entities involved in the property. He feels that for purposes of this application, La Pine should not be an issue; they would probably adopt those regulations of Deschutes County in any case. Beyond that, staff did a good job of reciting the chain of title. The property has been in essence in this single family for decades, prior to any land use regulations. All transfers have been within the family entities. Mr. Wilson said the claim was filed on behalf of the Stearns Land Company Limited Partnership. He disagrees with the County's position regarding the date of acquisition of November 15, 1995. There are two parcels. The first, smaller parcel to the south is referred to as parcel 3, 51205 and 55255 Huntington Road. The acquisition date of this parcel should be May 15, 1982, when it was acquired by the three daughters from their mother through the estate. The application documents this acquisition date. Minutes of Board of Commissioners' Meeting - Land Use Monday, January 8, 2007 Page 2 of 8 Pages More importantly, the larger piece at 52595 Huntington Road has an acquisition date of January 16, 1971. His position is that the conveyance of the property occurred in 1971 when Harry Stearns died and conveyed the property in trust to his wife and three children. The conveyance laws are absolute and complete. A copy of the will is attached, and page 1 reflects the property was conveyed in trust, and clearly points out the intent and purpose, which was to maintain his wife, Crystal, for her life, and upon her death for the property to be distributed to the three daughters equally. Documents include the will and a copy of the limited partnership agreement. Obviously the position of County is a conveyance date of November 15, 1995 when the daughters conveyed the property into a limited partnership. A copy of this agreement is also included. The limited partnership agreement shows that the general partners and the limited partners are all the three daughters. The intent was for estate tax purposes, and clearly shows at all times the properties remained in the ownership of the three daughters. Mr. Wilson explained that there is a huge, continuing issue about the transferability of Measure 37 waivers within families. The State has made a distinction regarding waivers and compensation. ORS 197.3211(a) defines families to include limited partnerships, and they don't lose transferability. He said he recognizes that this is not Crook County; however, the Judge issued an opinion and the Attorney General did not appeal that decision. The Crook County Judge ruled that an owner or family member may convey title to a legal entity and not lose Measure 37 status. Mr. Wilson feels that the case has some authority regarding precedent throughout the state. There was a comment in the staff report that said the claimant failed to provide information on development feasibility. In response to that, a minor land partition application and decision on September 24, 1980 by the claimants sought permission for a limited land partition, and it was granted by Deschutes County, finding that the soils were compatible for a sand filter system. Water and access were deemed to be adequate. Commissioner Baney stated that this is her first Measure 37 claim. She commented to staff that it is her understanding that they all are here regarding the date of the ownership claim, not whether building is feasible. Minutes of Board of Commissioners' Meeting - Land Use Monday, January 8, 2007 Page 3 of 8 Pages Mr. Pilliod replied that this is partially true; the principal reason is to determine the acquisition date. The whole question of feasibility comes in through the back door. The Ordinance requires as a part of the demonstration of value is that it be shown that the potential development is in fact feasible. Based on the information previously submitted, there is no information regarding water or sanitary services. There is no problem with the other information. Counsel said that the claimants had submitted minor partition in the past, but that was by Crystal Stearns and not the claimant. The claimant is a limited partnership, and a separate claim based on the claimant is not before the Board. Commissioner Daly asked if it is allowable to transfer or will property into a trust and have it still remain in the family. Mr. Pilliod replied that in terms of tracing back a history of the ownership, he has no argument as to the current ownership. The father created a customary trust. He said he disagrees that the remedy called for in the Measure is a limitation. The claim is that the current owner is entitled to compensation or a waiver. The limited partnership acquired the property in 1995. There is no dispute that the daughters acquired it through various legal means. However, the claimant before the Board is the limited partnership and no one else. In terms of the effect of the new City of La Pine, they have no adopted land use regulations; therefore, County regulations would apply. The distinction is that within the City, land use questions and applications are subject to City decisions; this has not been delegated to the County. He asked that staff be allowed to amend the report and Order if it involves a separate application with the City of La Pine. Commissioner Daly asked for comment on the ORS statute regarding not losing Measure 37 rights by transferring to a legal entity. Mr. Pilliod stated that the Circuit Court Judge's decision is not binding. Chapter 197 is Measure 37, now embedded in statute. The question regarding whether one would lose Measure 37 rights through transfers is not before the Board. Minutes of Board of Commissioners' Meeting - Land Use Monday, January 8, 2007 Page 4 of 8 Pages Mr. Wilson commented that the statute was recited to speak for itself. It defines family members to include legal entities formed by the family members. He feels that Crook County made a correct interpretation of statute. Dave Kanner said that he recollects that it differentiates between which benefits accrue to a family or others. It is correct for purposes of compensation. Mr. Pilliod stated that he doesn't have the Crook County decision before him. If the purpose establishes a Measure 37 claim would go back to when the family members first acquired the property, he recommends the Board go back to the current claimant, in 1995. Mr. Kanner asked that at the risk of confusing things more, when talking about value, does bringing the property into the City limits increase its value. Mr. Pilliod stated that this is outside his area of expertise. Mr. Anderson commented that in his opinion, most people would agree that being within a city allows property to potentially be up-zoned and developed more intensively. Mr. Kanner said he should not have asked this question. The boundaries of the City were approved by the Board. He asked if the boundary approval constituted a land use action. Mr. Pilliod replied that he understands it is a land use decision, although it had to be approved by the voters. Laurie Craghead confirmed it was a land use action. Commissioner Daly said that he understands the only thing to be considered is whether the partnership is a new owner and what the acquisition date is. He asked if the individuals had filed individual claims, would this make a difference. Mr. Pilliod answered that the rights of the individuals would have to be addressed separately. Tom Anderson noted that if the date of acquisition had been in 1992, the flood zone did not exist; the zoning would have changed for a land use ruling. Minutes of Board of Commissioners' Meeting - Land Use Monday, January 8, 2007 Page 5 of 8 Pages Commissioner Baney asked if the Board grants a waiver to the LLP and the individuals come back separately, does this change anything. Mr. Pilliod said he doesn't think it would make a difference and it should not hinder them. He said, however, he is now addressing the question of the LLP claim. He stated that if the Board is inclined to approve the Order as submitted, he asks that staff be permitted to include an additional section that would read somewhat like Section 5, referring to the necessity to obtain companion waivers from the State of Oregon, that would make the same requirement for the City of La Pine. Mr. Wilson asked for a clarification. He said when staff presented earlier, there was a reference to statute regarding property acquired by a partnership is not of the partners individually. He asked if this been correctly interpreted; whether the partners may still potentially have a claim. He said it seems that the only owner at this point is the partnership, and perhaps another deed would be needed from the partnership to the individuals, but this would create another date. Mr. Pilliod said they have received claims from individuals whose property interest is that they are a part of a corporation or an LLP. The law is uncertain whether they have an interest. Statute he recited earlier indicates a partnership severs the interest of the partners, but this does not prevent someone from making a case. They can do what they have to do to preserve their interest. The question today is, is the current acquisition date 1995. Mr. Wilson stated that his clients obviously don't want to keep coming back with applications. He requested that, given the comments made today, rather than the Board making a decision, to let them file an amended application as individuals. Mr. Pilliod said that he has not had a lot of experience with last minute requests to amend the claim. The Board had recently refused to amend the Miller claim request, but there was still some time before the filing deadline. At this time the applicant would have to submit a land use application and be turned down before filing a claim. If an amended application were submitted, it could only be done with the understanding that the County would then have 180 days to make a decision. Mr. Wilson stated he has no objection to that. Mr. Anderson noted that because of the volume of claims presented to the County, there is a lot of pressure to process and address them. In order to grant the claimants the ability to amend the waiver to their advantage, they would need to grant another 180 days from today to process the amended claim. Minutes of Board of Commissioners' Meeting - Land Use Monday, January 8, 2007 Page 6 of 8 Pages Commissioner Baney asked if they would not need to apply for a land use application anyway. Mr. Pilliod replied that persons can file Measure 37 claims within two years of the date of enactment of the Measure; this time period expired on December 4, 2006. For claims that are filed after that date, the claimant must demonstrate that they have since then submitted and were turned down for a land use application. Ultimately, after the claims process concludes, they still need to apply for development approvals. This is separate from the Measure 37 process, which is not a land use process. It is confusing because of the deadlines inserted in Measure 37. The claims were filed last July. If the Board permits them to amend the claims to include the individuals or partners, they don't have to submit the land use application and then another Measure 37 claim. This would avoid a considerable time and financial impact. Tom Anderson added that they would need to confirm that an additional 180 days would be added from the time the amendment is allowed. Mr. Wilson agreed. Commissioner Daly said he would not oppose allowing them to amend the application if they give the County another 180 days. Commissioner Baney agreed, since they filed in July and it is now so close to the cut-off date. BANEY: Move that the Board allow the claimant to amend the claim and present separate claims on behalf of the individuals of the limited partnership; and to treat such amendment as restarting the time frame in which to make a decision, and to include language regarding waivers being needed from both the State and the City of La Pine. This is applicable to both claims and Orders. DALY: Second. VOTE: BANEY: Yes. DALY: Chair votes yes. 4. Before the Board were Additions to the Agenda. None were offered. Minutes of Board of Commissioners' Meeting - Land Use Monday, January 8, 2007 Page 7 of 8 Pages Being no further items to come before the Board, Chair Daly adjourned the meeting at 11:05 a. m. DATED this 8th Day of January 2007 for the Deschutes County Board of Commissioners. MALI M. Daly, C it - 4-DIA.-t - ATTEST: a Recording Secretary Dennis R. Luke, Vice Tarnnfv B-anev. Copfilhissioner Minutes of Board of Commissioners' Meeting - Land Use Monday, January 8, 2007 Page 8 of 8 Pages Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org BUSINESS MEETING AGENDA - LAND USE DESCHUTES COUNTY BOARD OF COMMISSIONERS 10:00 A.M., MONDAY, JANUARY 8, 2007 Commissioners' Hearing Room - Administration Building 1300 NW Wall St., Bend 1. CITIZEN INPUT This is the time provided for individuals wishing to address the Board regarding issues that are not already on the agenda. Visitors who wish to speak should sign up prior to the beginning of the meeting on the sign-up sheet provided. Please use the microphone and also state your name and address at the time the Board calls on you to speak. 2. A HEARING on Order No. 2007-005, a Measure 37 Claim (Claimant: Stearns) - Mark Pilliod, Legal Counsel; Tom Anderson, Community Development Department 3. A HEARING on Order No. 2007-007, a Measure 37 Claim (Claimant: Stearns) -Mark Pilliod, Legal Counsel; Tom Anderson, Community Development Department 4. ADDITIONS TO THE AGENDA Deschutes County meeting locations are wheelchair accessible. Deschutes County provides reasonable accommodations for persons with disabilities. For deaf, hearing impaired or speech disabled, dial 7-1-1 to access the state transfer relay service for TTY. Please call (541) 388-6571 regarding alternative formats or for further information. Board of Commissioners' Business Meeting Agenda Monday, January 8, 2007 Page 1 of 5 Pages FUTURE MEETINGS: (Please note: Meeting dates and times are subject to change. All meetings take place in the Board of Commissioners' meeting rooms at 1300 NW Wall St., Bend, unless otherwise indicated. If you have questions regarding a meeting, please call 388-6572) Monday, January 8, 2007 10:00 a.m. Board Land Use Meeting - tentative 1:30 p.m. Administrative Work Session - tentative 3:30 p.m. Local Public Safety Coordinating Council (LPSCC) Meeting Wednesday, January 10, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 p.m. Administrative Work Session - could include executive session(s) Friday, January 12, 2007 7:00 a.m. Bend Chamber of Commerce Breakfast Meeting Monday, January 15, 2007 Most County offices will be closed to observe Martin Luther King, Jr. Day Tuesday, January 16, 2007 10:00 a.m. Regular Meeting of the Employee Benefits Advisory Committee Wednesday, January 17, 2007 1:30 p.m. Administrative Work Session - could include executive session(s) Tuesday, January 18, 2007 7:00 a.m. Regularly Scheduled Meeting with the Redmond City Council, Council Chambers Monday, January 22, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Board of Commissioners' Business Meeting Agenda Monday, January 8, 2007 Page 2 of 5 Pages Wednesday, January 24, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 p.m. Administrative Work Session - could include executive session(s) Thursday, January 25, 2007 8:00 a.m. Board Goal Setting Retreat - McMenamin's Monday, January 29, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Wednesday, January 31, 2007 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, February 5, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) 3:30 p.m. Regular Meeting of LPSCC (Local Public Safety Coordinating Council) Monday, February 12, 2007 10:00 a.m. Board Land Use Meeting - tentative 1:30 p.m. Administrative Work Session - tentative Wednesday, February 14, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 p.m. Administrative Work Session - could include executive session(s) Wednesday, February 21, 2007 1:30 p.m. Administrative Work Session - could include executive session(s) Board of Commissioners' Business Meeting Agenda Monday, January 8, 2007 Page 3 of 5 Pages Monday, February 26, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Wednesday, February 28, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, March 5, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) 3:30 p.m. Regular Meeting of LPSCC (Local Public Safety Coordinating Council) Wednesday, March 7, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 P.M. Administrative Work Session - could include executive session(s) Wednesday, March 14, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 p.m. Administrative Work Session - could include executive session(s) Thursday, March 15, 2007 7:00 a.m. Regularly Scheduled Meeting with the Redmond City Council, Council Chambers Monday, March 19, 2007 1:30 p.m. Administrative Work Session - could include executive session(s) Tuesday, March 20, 2007 10:00 a.m. Regular Meeting of the Employee Benefits Advisory Committee Board of Commissioners' Business Meeting Agenda Monday, January 8, 2007 Page 4 of 5 Pages Wednesday, March 21, 2007 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, March 26, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) Wednesday, March 28, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 p.m. Administrative Work Session - could include executive session(s) Monday, April 2, 2007 10:00 a.m. Board Land Use Meeting 1:30 p.m. Administrative Work Session - could include executive session(s) 3:30 p.m. Regular Meeting of LPSCC (Local Public Safety Coordinating Council) Wednesday, April 4, 2007 10:00 a.m. Board of Commissioners' Meeting 11:15 a.m. Legislative Update Conference Call 1:30 p.m. Administrative Work Session - could include executive session(s) Thursday, April 5, 2007 8:00 a.m. Regular Meeting with the City of Sisters Council, Sisters City Hall Deschutes County meeting locations are wheelchair accessible. Deschutes County provides reasonable accommodations for persons with disabilities. For deaf, hearing impaired or speech disabled, dial 7-1-1 to access the state transfer relay service for TTY. Please call (541) 388-6571 regarding alternative formats or for further information. Board of Commissioners' Business Meeting Agenda Monday, January 8, 2007 Page 5 of 5 Pages IF YOU WISH TO TESTIFY Please complete this card & turn it in to a County staff person. Name: /Q ff6. lso•.-o Mailing Address: 1A/6 VW Phone E-mail Address: £ . , a Date: Subject r I : s> e e MI EEER I NAS H LLP A T T O R N E Y S A T Jeffrey M. Wilson jets wMon@millernwkwm (541) 447-5777 L A W Board of County Commissioners Deschutes County DAS 1300 NW Wall St., Ste. #200 Bend OR 97701-1947 Miller Nash LLP www.millemash.com 446 N.W. 3`° Street, Suite 230 4400 Two Union Square Prineville, OR 97754-1757 501 Union Street (541) 447-5777 Seattle, WA 98101-2352 (541) 447-5755 (205) 622-5454 (205) 622.7485 fax 354 S.W. Upper Terrace Drive Suite 101 500 E. Broadway, Suite 400 Bend, OR 97702 Post Office Box 694 (541) 383-5857 Vancouver, WA 98666-0694 (541) 383-3968 (360)699.4771 (360) 694.6413 fax 3400 U.S. Bancorp Tower 111 S.W. Fifth Avenue Portland, OR 972043699 (503)224-5856 (503) 224-0165 fax January 5, 2007 Subject: Ballot Measure 37 (ORS 197.352) Claimant: Stearns Land Company, Limited Partnership 51205 and 51255 Huntington Road, LaPine, Oregon (75.73 acres) Ballot Measure 37 (ORS 197.352) Claimant: Stearns Land Company, Limited Partnership 52595 Huntington Road, LaPine, Oregon (116.49 acres) Dear Commissioners: This office represents Stearns Land Company, Limited Partnership, Claimant in the above-referenced Ballot Measure 37 claims. I have received Daivd Kanner's Staff Reports dated January 8, 2007, together with draft Orders 2007-005 and 2007-07. This letter will serve as the Claimant's response to the Staff Report and Recommendations. Claimant objects to the proposed Finding of Fact that the Claimant, Stearns Land Company, Limited Partnership, acquired the subject property on November 15, 1995. Claimant submits that the actual date of acquisition should not be later than the following: 1. As to 51205 and 51255 Huntington Road (75.73), LaPine, Oregon, May 15, 1982, is the date that Shirley Stearns Browning, Joyce Stearns Barney and Ann Stearns Ramseyer dba Stearns Land Company inherited the property from their mother, Crystal Stearns. 2. As to 52595 Huntington Road (116.49 acres), LaPine, Oregon, January 16, 1971, is the date Harry I. Stearns died and the property passed to a trust for the benefit of his wife Crystal Stearns for life with the remainder to the 3 children, Shirley Stearns Browning, Joyce Stearns Barney and Ann Stearns Ramseyer. January 5, 2007 Page 2 Attached and incorporated herein is a copy of the Last Will and Testament of Harry I. Stearns who died on January 16, 1971. Through the probate of Harry I. Stearns' estate, all property, including all real property, transferred into a testamentary trust for the benefit of Crystal Stearns for life and then to their children or the survivor of them. Therefore, the date of acquisition is the date upon which title vested in the testamentary trust and not when the limited partnership later acquired the property on November 15, 1995. The transfer from Shirley Stearns Browning, Joyce Stearns Barney, and Ann Stearns Ramseyer as tenants in common to Stearns Land Company, Limited Partnership by deed dated November 15, 1995, does not effect the earlier acquisition date because these same family members are the owners of this legal entity. See copy of Limited Partnership Agreement attached and incorporated herein. ORS 197.352(11)(A) defines "family member" to include an estate of any of the foregoing family members or a legal entity owned by a family member or the owner of the property. Finally, in response to the finding that there is no evidence that domestic water, sanitary sewer and access for the desired use are feasible, the following additional information is provided. Attached is a letter from Deschutes County Planning Department dated April 23, 1981, approving a minor land partition for the subject property. That land partition was approved and signed by the County Commission, County Planning Director, County Surveyor and County Sanitarian. At the time of the minor partition, Deschutes County approved the requested land use application including the availability of sufficient domestic water, sewer and access feasibility. e y yours, CJ~e M. Wilson January 5, 2007 Page 3 WILSON:Ijn c: Client (w/o enc.) Enc. JMW/ClientsBarney.Joyce/DeschutesBrdCommissioners.Ltr.1.05.07 4c LAST WILL AND TESTAMENT of HARRY I. STEARNS KNOW ALL MEN BY THESE PRESENTS, That I, HARRY I. STEARN,S,.a resident of Crook County, Oregon, being of lawful age and sound and disposing mind and memory, do make, publish and declare this, my Last Will and Testament, hereby revoking all previously made wills and codicils, in'the manner and form following, to-wit: I I hereby direct that all my just debts and funeral expenses be promptly paid. I further direct that my.Executrix regard all State,.Federal or other estate and inheritance taxes which my Executor may be required to pay as an obligation of my Estate. I also direct my Executrix to reimburse any other person who shall pay any estate or inheritance taxes arising as a re- sult of my death; whether or not any. part of the property, the transfer of which gave rise to such taxes, is a part of my Es- tate. II Unto my wife, Crystal Stearns,.if she survives me by. at least ninety (90) days, I bequeath all my jewelry, household furnishings, personal effects and my personal automobile, if any: III I devise and bequeath all the rest, residue and remain- der of my Estate to Crystal Stearns, IN TRUST, however, for the following uses and purposes: (a) From such trust estate, my Trustee shall distri- %r enjoying at the time of my decease. (b) Upon the death of Crystal Stearns, the.then re- maining.trust estate shall be distributed to my three daughters,' Shirley Stearns.Browning, Joyce Stearns Barney and Ann Stearns Ramseyer, in equal shares, or to her issue (including adopted children), if either be deceased. (c) In the event that any child or grandchild of Shirley Stearns Browning or Ann Stearns Ramseyer should be less than twenty-one (21) years of age when he or she becomes entitled to a share of this Trust, such share shall be distributed to his or her father, IN TRUST, however, under the following terms and conditions; or if any child or grandchild of Joyce Stearns Barney. is less than twenty-one (21) years of age at the time he or she becomes entitled to a share of this Trust, such share shall be distributed to Shirley Stearns Browning., IN TRUST, however, under' the following terms and conditions: 1. From each such trust estate, the Trustee shall pay from income or principal to or for the benefit of the beneficiary, such sums as the Trustee may,deem necessary for his or her care, support and edu- cation. 2. When a beneficiary attains the age of twenty-one (21) years, the then remaining trust estate shall be.distributed to him or her; or if a beneficiary dies before attaining the age of twenty-one (21) years, the trust estate shall be con- tinued in trust for the benefit of his or her surviving issue, if any; and if there are no surviving issue, the trust estate shall be distributed to the bene- ficiary's brothers and sisters in equal shares (d) The.interest of a beneficiary in the principal or income of this'Trust shall not be.subject to the claims of her creditors or others, nor to legal process,. and.may not be voluntarily or involuntarily anticipated. alienated or Pnmimhara.ri i ~1 W `dam '1 C 1 terms which may extend beyond the termination of the Trust), rent, assign, transfer or otherwise dispose of all or any part there- of upon such terms-and conditions as he.may in his discretion deem proper, and may invest and reinvest all or any part of the trust estate in such common or preferred stocks, bonds, deben- tures, mortgages, deeds of trust, notes or other securities, investments or property, which he in his absolute discretion may select or determine, it being my express desire and intention that said investments which trustees may otherwise be permitted by law to make, and said Trustee may continue to hold, in the. form in which received, any securities or other property which I may own at the time of my death, or which he may at any time acquire hereunder, and may invest any part of the trust funds in property located outside of the State of Oregon. (f) In the event that Crystal Stearns is at any time unable or unwilling to serve as Trustee, Shirley Stearns Browning and Joyce Stearns Barney or the other if either is unable,or.' unwilling to serve, shall serve as, alternate Trustees or Trustee of the principal trust provided above. (g) If the father of any beneficiary or Shirley.Stearns.. Browning is unable or unwilling to serve as the Trustee of a Trust established in accordance with Subparagraph (c) above, my surviving daughters or daughter, if only one, shall serve as alternate Trustees or Trustee. IV I hereby nominate and appoint my wife, Crystal Stearns,, to be Executrix of this, my Last Will and.Testament,.•.and to serve without bond: In'the event of,the'death, resignation, disability or refusal of the said Crystal Stearns to act, I hereby nominate and appoint my daughters: Shirley StaarnR •RPnwninar M'A T,.. - t I hereby empower my said Executrix and alternate Ex- ecutors to continue the operation of any business in which I maybe engaged at the time of my decease for a reasonable period of time to facilitate its-orderly liquidation, or its sale as a going business. I also empower my Executrix or any alternate Executors to lease, encumber, exchange, deal with, or dispose of all my property, real or personal, or any part thereof, in such manner, at such times and upon such terms as to either of them shall ap- pear for the best Interest of my Estate, such sale or other dis- position to be made at public or private sale in the discretion of my Executrix or any alternate Executors without any reference to the order of disposition of real and personal property and without any petition, citation, hearing, order or 'any other action. IN WITNESS WHEREOF, I hereunto set my hand at Prineville,. Oregon this day of October, 1968. The foregoing instrument, consisting of four (4) pages, and each initialed thus-I'~ was on the date hereof, signed, sealed,.published and declared to be his Last Will and Testament by HARRY I. STEARNS, in the presence of us, who, at his request and in his presence, in the presence of each other, have.sub- scribed our names as witnesses thereto.. Residing at LIMITED PARTNERSHIP AGREEMENT OF STEARNS LAND CO. LIMITED PARTNERSHIP DATE: PARTIES: SHIRLEY STEARNS BROWNING ("Partners") 1122 Hemlock Avenue Lewiston, Idaho 83501 JOYCE STEARNS BARNEY P.O. Box 445 Prineville, Oregon 97754 ANN STEARNS RAMSEYER 29 Hansen Ct. Moraga, California 94556 AGREEMENT: The parties agree as follows: 1. FORMATION 1.1 FORMATION OF LIMITED PARTNERSHIP. The parties (the "Partners") hereby form a limited partnership (the "Partnership") pursuant to the provisions of the Oregon Uniform Limited Partnership Act (ORS chapter 70) on the terms and conditions set forth in this Agreement. 1.2 NAME. The name of the Partnership is Stearns Land Co. Limited Partnership. 1.3 PRINCIPAL PLACE OF BUSINESS. The principal place of business of the Partnership shall be located at 825 Crest Drive, Prineville, Oregon 97754, or at such other place or places as the General Partners may from time to time designate. At such principal place of business, the Partnership shall keep the records required to be maintained by ORS 70.050. The Partnership may maintain such additional offices as the General Partner may determine. 1 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] I-T 1.4 BUSINESS PURPOSES. The purposes of the Partnership are as follows: (1) To own, operate, exchange, transfer, mortgage, Partnership property; manage, lease, maintain, sell, and hold for investment the (2) To incur indebtedness, secured or unsecured, for any purpose of the Partnership; and (3) To engage in any other activities that are necessary or incidental to the foregoing purposes or that may be necessary or appropriate to protect or enhance the assets of the Partnership. 1.5 TERM. The Partnership shall commence its existence on the date on which the Certificate of Limited Partnership is filed in the office of the Secretary of State of Oregon. The Partnership shall continue for 30 years unless the Partnership is terminated earlier pursuant to Section 10. 1.6 PARTNERS. There shall be general partners and limited partners. The name and address of the general partners (the "General Partner") are as follows: NAME OF GENERAL PARTNER Shirley Stearns Browning Joyce Stearns Barney Ann Stearns Ramseyer ADDRESS 1122 Hemlock, Lewiston, ID 83501 PO Box 445, Prineville, OR 97754 29 Hansen Court, Moraga, CA 94556 The names and addresses of the limited partners (the "Limited Partners") are as follows: NAME OF LIMITED PARTNER ADDRESS Shirley Stearns Browning 1122 Hemlock, Lewiston, ID 83501 Joyce Stearns Barney PO Box 445, Prineville, OR 97754 2 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] Ann Stearns Ramseyer 29 Hansen Court, Moraga, CA 94556 1.7 CERTIFICATE OF LIMITED PARTNERSHIP. As soon as practicable after the execution of this Agreement, the General Partner shall file a Certificate of Limited Partnership in the office of the Secretary of State of Oregon in accordance with applicable provisions of the Oregon Uniform Limited Partnership Act. The Partnership shall register as a foreign limited partnership in other jurisdictions in which the Partnership is transacting business in accordance with the laws governing foreign limited partnerships of such other jurisdictions; provided, however, that the Oregon Uniform Limited Partnership Act shall govern the organization and internal affairs of the Partnership, the limited liability of the Limited Partners, and the enforceability and interpretation of this Agreement. 1.8 REGISTERED AGENT AND REGISTERED OFFICE. The registered agent of the Partnership is Joyce Stearns Barney and the address of the registered office of the Partnership is 825 Crest Drive, Prineville, Oregon 97754. 1.9 REGISTRATION OF ASSUMED BUSINESS NAME. The General Partner shall cause to be filed on behalf of the Partnership such assumed business name registrations as may be necessary. 2. CAPITAL 2.1 CAPITAL CONTRIBUTIONS BY LIMITED PARTNERS. Each Limited Partner has made the following initial contributions to the capital of the Partnership and have the following initial ownership interest in the Partnership: LIMITED PARTNERS CAPITAL CONTRIBUTION OWNERSHIP Shirley Stearns Browning A 306 interest in the 300 real property described on attached Exhibit "A" Joyce Stearns Barney A 306 interest in the 306 real property described on attached Exhibit "A" 3 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] Ann Stearns Ramseyer A 309,; interest in the 30% real property described on attached Exhibit "A" 2.2 CAPITAL CONTRIBUTIONS BY THE GENERAL PARTNER. The General Partner has made the following initial contribution to the capital of the Partnership and has the following ownership interest-in the Partnership: GENERAL PARTNERS CAPITAL CONTRIBUTION OWNERSHIP Shirley Stearns Browning A 3 1/301 interest in 3 1/3% the real property described on Exhibit "A" Joyce Stearns Barney A 3 1/3% interest in 3 1/3 the real property described on Exhibit "A" Ann Stearns Ramseyer A 3 1/3o interest in 3 1/3 the real property described on Exhibit "A" 2.3 OWNERSHIP INTERESTS. All ownership interests in the Partnership are of the same class of equity. Any change in ownership interest from that set forth in Sections 2.1 and 2.2 shall be reflected in an addendum to this Agreement signed by the Partners effected by such change. 2.4 NO'ASSESSMENTS. Except as provided in Section 10.4 or as otherwise provided by the Oregon Uniform Limited Partnership Act, a Limited Partner shall not be subject to assessment nor be personally liable for any expense, liability, or obligation of the Partnership beyond such Limited Partner's capital contribution. If a Limited Partner receives as a distribution the return, in whole or in part, of his or her capital contribution, such Limited Partner shall be liable to the 4 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] a Partnership for the amount of the returned contribution for the period specified in the Oregon Uniform Limited Partnership Act. 2.5 NO INTEREST. No interest shall be paid by the Partnership on the capital contributions of the Partners or on the balance in the Capital Accounts (defined in Section 7.6) of the Partners. 2.6 NONRECOURSE LOANS. If the Partnership borrows funds on a nonrecourse basis, the creditor making such loan shall not have or acquire at any time, as a result of making such loan, any direct or indirect interest in the profits or capital of the Partnership other than as a secured creditor. 2.7 RETURN OF CONTRIBUTIONS; NO RIGHT TO WITHDRAW CAPITAL. Each Partner shall look solely to the assets of the Partnership for the return of such Partner's capital contribution, and, if the assets of the Partnership are insufficient to return such capital contribution, such Partner shall have no recourse against any other Partner for that purpose. A Limited Partner shall not have the right to withdraw or retire from the Partnership unless such Limited Partner has transferred all of such Limited Partner's ownership interest to one or more persons or entities in accordance with the provisions of this Agreement, and each transferee of such ownership interest has been admitted to the Partnership as a substituted Limited Partner. Except as specifically provided in this Agreement, a Partner may not withdraw capital from the Partnership. A Limited Partner shall not have the right to demand and receive property other than cash in return for such Limited Partner's capital contribution. 3. ALLOCATION OF PROFITS AND LOSSES 3.1 DETERMINATION OF PROFITS AND LOSSES. The profits and losses of the Partnership for each fiscal year shall be determined as of the end of such fiscal year by the Partnership's certified public accountants in accordance with those principles of the cash receipts and disbursements method of accounting that are employed in the preparation of the federal income tax informational return filed by the Partnership for that fiscal year, subject to such adjustments under the Internal Revenue Code of 1986 ("IRC") or Treasury Regulations as the Partnership's certified public accountants shall deem necessary or advisable. 5 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] 3 3.2 ALLOCATION. All items of income, gain, loss, deduction and credit of the Partnership for each fiscal year shall be allocated among the Partners in proportion to their ownership interest in the Partnership. 3.3 TRANSFER OF PARTNERSHIP INTEREST DURING FISCAL YEAR. In any fiscal year of the Partnership in which a Partner is a partner for less than all of such fiscal year, such Partner shall be only those items of income, gain, loss, deduction and credit allocable to the period during which such Partner is a partner, and such items shall be determined using the semimonthly convention and the "interim closing of books" method of accounting as allowed by IRC §706. 4. DISTRIBUTIONS 4.1 DISTRIBUTIONS. Distributions to Partners may be made at such times and in such amounts as the General Partner shall determine in its sole and absolute discretion, subject to any limitations contained in the Oregon Uniform Limited Partnership Act. 4.2 NO RIGHT TO DISTRIBUTIONS. No Partner shall have the right to require that the General Partner make any distributions. 5. RIGHTS, OBLIGATIONS, AND LIABILITIES OF GENERAL PARTNER 5.1 MANAGEMENT. The General Partner shall have full and exclusive responsibility and control over the management of the business and internal affairs of the Partnership. The General Partner shall have full and exclusive authority and power to do any and all things necessary or incidental to the management of the business and internal affairs of the Partnership. The General Partners may appoint a General Partner as Managing Partner. The Managing Partner shall be responsible for carrying out the normal business activities of the Partnership. 5.2 SPECIFIC RIGHTS AND POWERS OF GENERAL PARTNER. Subject to the limitations set forth in Section 5.4, the General Partner shall have all specific rights and powers required for or appropriate to the management of the Partnership's business and internal affairs which, by way of illustration, but not by way of limitation, shall include the following rights and powers: 6 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] Y (1) To purchase the real and personal property on behalf of the Partnership; (2) To operate, manage, maintain, and lease the property on behalf of the Partnership; (3) To sell, exchange, transfer, or otherwise dispose of real property and other assets of the Partnership; (4) To incur indebtedness, secured or unsecured, for any purpose of the Partnership; (5) To construct additions or improvements to real property and to employ persons or engage independent contractors with respect to such construction on such terms and for such compensation as the General Partner may reasonably determine; (6) To employ persons or engage independent contractors with respect to the operation, management, maintenance, leasing, or sale of real property, including, without limitation, property managers, leasing agents, engineers, consultants, or real estate brokers, on such terms and for such compensation as the General Partner may reasonably determine; (7) To negotiate all agreements, contracts, or leases in connection with the acquisition, construction, management, maintenance, operation, leasing, or sale of real property and any other assets of the Partnership or in connection with any indebtedness incurred by the Partnership; (8) To purchase, attach to, or place in service on real property fixtures or personal property; (9) To obtain insurance that the General Partner reasonably deem necessary or proper for the protection of the Partnership, for the conservation of any asset of the Partnership, or for any purpose beneficial to the Partnership; (10) To employ attorneys, accountants, or other professionals on behalf of the Partnership; (11) To pay, collect, compromise, arbitrate, resort to legal action for, or otherwise adjust claims or demands of or 7 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] against the Partnership; (12) To establish such reserves as the General Partner, in its sole discretion, deems reasonable for working capital, capital improvements, or unknown or unfixed liabilities or contingencies of the Partnership; (13) To authorize any agent or employee of the Partnership to act for or on behalf of the Partnership in all matters incidental to the foregoing rights and powers; and (14) To have all other rights and powers that are necessary or incidental to the foregoing rights and powers or that may be necessary or appropriate to protect or enhance the assets of the Partnership. 5.3 EXERCISE OF MANAGEMENT AUTHORITY; EXECUTION OF DOCUMENTS. The General Partner may execute on behalf of the Partnership any document or instrument, including, without limitation, a note, deed, easement, bill of sale, assignment, lease, mortgage, deed of trust, security agreement, contract, or agreement. Execution of a document or instrument by the General Partner shall be binding upon the Partnership. 5.4 LIMITATIONS ON AUTHORITY OF GENERAL PARTNER. The General Partner shall not have authority to do any act prohibited by law or in contravention of any provision of this Agreement. 5.5 COMPENSATION AND FEES 5.5.1 ADMINISTRATIVE FEE. For services rendered in managing the business and internal affairs of the Partnership, the General Partner shall be paid by the Partnership an administrative fee in the amount that is reasonable in the judgment of the General Partner. 5.5.2 REIMBURSEMENT OF PARTNERSHIP EXPENSES. The General Partner shall be reimbursed for those costs and expenses to be borne by the Partnership pursuant to Section 7.8 that have been paid or incurred by the General Partner on behalf of the Partnership. 5.6 DEVOTION OF TIME. The General Partner shall devote as 8 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] much of its time to the business and internal affairs of the Partnership as in their judgment is reasonably required. 5.7 OTHER BUSINESS ACTIVITIES. This Agreement shall not preclude the General Partner from engaging directly or indirectly in any other business, including any business that is similar.to the business of the Partnership, involves real estate investment or development, or results in direct or indirect competition with the Partnership. Each Limited Partner acknowledges that ownership interest in the Partnership shall not entitle such Limited Partner to have or acquire a profits or capital interest in any other partnership or venture organized by the General Partner. A Limited Partner shall not have any right to participate in any manner in the income earned by or accruing to the General Partner from the conduct of any other business. The General Partner shall not be accountable to the Partnership or the Limited Partners for any investment or business opportunity which such General Partner becomes aware of.by reason of the affairs of the Partnership. Each Limited Partner waives any and all rights that such Limited Partner has now or may have in the future by reason of the doctrine of partnership opportunity. 5.8 EXCULPATION. The General Partner and its trustees, agents, and employees shall not be liable to any Limited Partner or to the Partnership for honest mistakes of judgment or for action or inaction taken in good faith for a purpose reasonably believed to be in the best interests of the Partnership, provided that such mistake, action, or inaction does not constitute willful misconduct. The General Partner and its officers, directors, agents, and employees may consult with counsel or accountants with respect to the business and internal affairs of the Partnership and shall be fully protected and justified in any action or inaction that is taken in accordance with the advice or opinion of such counsel or accountants, provided that such counsel or accountants shall have been selected with reasonable care, and provided further that such action or inaction does not constitute willful misconduct. 5.9 INDEMNIFICATION. The Partnership shall indemnify and hold harmless the General Partner and its trustees, agents, and employees from and against any liabilities, losses, and expenses suffered or sustained, including, without limitation, any 9 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] r Z judgment, settlement, reasonable attorney fees, and other costs or expenses incurred in connection with the defense of any actual or threatened action or proceeding, provided that such liability, loss, or expense results from an honest mistake of judgment or from action or inaction taken in good faith for a purpose reasonably believed to be in the best interests of the Partnership, and provided further that such mistake, action, or inaction does not constitute willful misconduct. The indemnification rights contained in this Section 5.9 shall be in addition to any and all other rights of indemnification to which the General Partners shall be entitled, whether pursuant to this Agreement, at law, or in equity. 6. RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS 6.1 PARTICIPATION IN MANAGEMENT. In accordance with the Oregon Uniform Limited Partnership Act, the Limited Partners shall not have any right to participate in the management or control of the business or internal affairs of the Partnership. 6.2 NO AUTHORITY TO ACT. A Limited Partner shall not have the authority or power in the capacity of a limited partner to act as an agent for or on behalf of the Partnership or any other Partner, to bind the Partnership, or to incur any liability with respect to the Partnership or its assets. 6.3 LIMITATION ON LIABILITIES. Except as provided in Section 10.4 or as otherwise provided by the Oregon Uniform Limited Partnership Act, the liability of each Limited Partner, in the capacity of limited partner, for the debts and obligations of the Partnership shall be limited. 6.4 MEETINGS. A meeting of the Partners may be called at any time by the General Partner. Notice of such meeting shall be given in writing at least 20 days before such meeting and shall state the reason for the meeting and the time and place of the meeting. Notice of any meeting of the Partners may be waived by any Partner, and the sufficiency of any notice may not be challenged by any Partner who is present at such meeting. 6.5 RIGHTS OF LIMITED PARTNERS. Each Limited Partner shall have the right under ORS 70.145 to: 10 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] ■ (1) Inspect and copy any of the Partnership records required to be maintained by ORS 70.050; and (2) Obtain from the General Partner from time to time upon reasonable demand (a) true and full information regarding the state of the business and financial condition of the Partnership, (b) a copy of the Partnership's federal, state, and local income tax returns for each year promptly after they become available, and (c) other information regarding the business and internal affairs of the Partnership as is just and reasonable. 7. ACCOUNTING MATTERS 7.1 BOOKS OF ACCOUNT. At all times during the existence of the Partnership, the General Partner shall cause to be kept complete and accurate books of account that reflect all the Partnership's operations and transactions in accordance with the cash receipts and disbursements method of accounting. All such books of account shall be available at the principal office of the Partnership for inspection and for the making of copies by any of the Partners or their representatives at reasonable times. Such books of account shall be maintained and preserved during the terms of the Partnership and for a period of four years after the dissolution and termination of the Partnership. 7.2 METHOD OF ACCOUNTING. The Partnership shall use the cash receipts and disbursements method of accounting for reporting purposes and for income tax purposes. 7.3 FISCAL YEAR. The fiscal year and taxable year of the Partnership shall be the calendar year. 7.4 FINANCIAL AND TAX INFORMATION. The Partnership, at its expense, shall furnish to each Partner within 75 days after the end of each fiscal year, or as soon as possible thereafter, a copy of the Schedule K-1 and other tax information applicable to the preparation of such Partner's federal and state income tax returns. 7.5 INCOME TAX MATTERS 11 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] 7.5.1 PARTNERSHIP INFORMATIONAL RETURNS. The General Partner shall cause all necessary informational tax returns of the Partnership to be prepared and filed. 7.5.2 TAX ELECTIONS. No election shall be made by any Partner to be excluded from the application of the provisions of IRC Subchapter K pursuant to IRC §761(a). The General Partner, in its sole discretion, may cause the Partnership to file an election in accordance with the applicable Treasury Regulations under IRC § 754 to cause the basis of the Partnership's assets to be adjusted for federal income tax purposes as provided by IRC §734(b) or 743(b). 7.5.3 TAX MATTERS PARTNER. Joyce Stearns Barney, a General Partner, shall serve as the "tax matters partner" of the Partnership pursuant to IRC §6231(a)(7). 7.6 CAPITAL ACCOUNTS 7.6.1 MAINTENANCE OF CAPITAL ACCOUNTS. The Partnership shall maintain a capital account ("Capital Account") for each Partner on a cumulative basis. 7.6.2 AMOUNTS CREDITED. Each Partner's Capital Account shall be increased by such Partner's capital contributions, such Partner's share of profits of the Partnership, and the amount of any Partnership liabilities that are secured by any Partnership property distributed to such Partner. 7.6.3 AMOUNTS DEBITED. Each Partner's Capital Account shall be decreased by distributions to such Partner, such Partner's share of losses of the Partnership, and the amount of any liabilities of such Partner that are secured by any property contributed by such Partner to the Partnership. 7.6.4 ADJUSTMENT OF GROSS ASSET VALUES. The adjusted bases for federal income tax purposes of Partnership property or, if applicable, the values of Partnership property pursuant to this Section 7.6.4, shall be adjusted to equal the respective gross fair market values of such Partnership property, as determined by the General Partner, as of the following times: (1) The acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more 12 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] than a da minimis capital contribution; (2) The distribution by the Partnership to a Partner, whether withdrawing or continuing, of more than a de minimis amount of Partnership property as consideration for an interest in the Partnership; (3) When required by generally accepted accounting principles, if substantially all the Partnership property other than money is stock, securities, commodities, options, warrants, futures, or similar instruments that are readily tradeable on an established securities market; and (4) The termination of the Partnership for federal income tax purposes pursuant to IRC §708 (b) (1) (B) . If the value of an asset has been determined or adjusted pursuant to this Section 7.6.4, such value thereafter shall be adjusted by the depreciation taken into account with respect to such asset for purposes of computing the profits and losses of the Partnership. If the values of Partnership property are adjusted pursuant to this Section 7.6.4, the Capital Accounts of the Partners shall be adjusted simultaneously to reflect the aggregate net adjustment as if the Partnership recognized gain or loss equal to the amount of such aggregate net adjustment. 7.6.5 COMPLIANCE WITH REGULATION. The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations §§1.704-1(b) and 1.704-1T(b) and shall be interpreted and applied in a manner consistent with that regulation. If the General Partner reasonably determine that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto, are computed in order to comply with Treasury Regulations §§1.704-1(b) and 1.704-1T(b), the General Partner may make that modification if it is not likely to have a material adverse-effect on the amounts distributable to the Partners pursuant to Section 10.2 upon dissolution of the Partnership or upon the amounts of profits or losses allocable to the Partners. The General Partner also shall make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply with Treasury Regulations §§1.704-1(b) and 1.704-1T (b) . 13 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] c 7.6.6 TRANSFER. If any interest in the Partnership is transferred, the transferee shall succeed to the Capital Account to the extent it relates to the transferred interest. 7.7 RESERVES. The General Partner, in its sole discretion, shall from time to time establish or abolish reserves for working capital, for capital improvements, and for unknown or unfixed liabilities or contingencies of the Partnership. 7.8 PARTNERSHIP EXPENSES. The Partnership shall bear all costs and expenses attributable to the conduct of the business of the Partnership and the administration of the internal affairs of the Partnership, which, by way of illustration, but not by way of limitation, shall include the following costs and expenses: (1) Costs and expenses incurred with respect to the acquisition and sale of real property by the Partnership; (2) Costs and expenses incurred with respect to the construction of improvements and additions to real property and the fees charged in connection therewith by architects, engineers, appraisers, contractors, and subcontractors; (3) Costs and expenses incurred with respect to the purchase, installation, and delivery of fixtures and personal property; (4) Costs and expenses incurred with respect to the management, operation, maintenance, leasing, and ownership of real property, including, but not limited to, fees paid to property management firms and leasing agents; (5) Interest payments, principal payments, loan fees, loan commitment fees, and other expenses related to the indebtedness of the Partnership; (6) Costs and expenses related to the administration of the internal affairs of the Partnership, such as expenses for accounting, legal, and other professional services, reports, tax audits, bookkeeping, and inspections; (7) Fees payable to the General Partner pursuant to Section 5.5 (but excluding costs and expenses that are not 14 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] e reimbursable under Section 5.5.2); and (8) Costs and expenses incurred with respect to the formation of the Partnership. 7.9 BANK ACCOUNTS. All funds of the Partnership not otherwise invested shall be deposited in one or more accounts maintained in banking institutions or money market funds as the General Partner shall determine, and withdrawals shall be made only in the regular course of the Partnership business on such signature or signatures as the General Partner may, from time to time, determine. 8.0 TRANSFER OF INTEREST BY LIMITED PARTNERS 8.1 RESTRICTIONS ON TRANSFERABILITY. Each Limited Partner acknowledges that interests in the Partnership have not been registered under the Securities Act of 1933 in reliance upon an exemption from registration and that the resale or other transfer of the interest by a Limited Partner is restricted by applicable provisions of the Securities Act of 1933. THE PARTNERSHIP INTERESTS MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED, OR OTHERWISE DISPOSED OF BY A LIMITED PARTNER IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE GENERAL PARTNER THAT REGISTRATION UNDER THE SECURITIES ACT OF 1933 IS NOT REQUIRED. Each Limited Partner agrees that the interests may not be offered for sale, sold, transferred, pledged, or otherwise disposed of unless the interests are registered under the Securities Act of 1933 and applicable state securities. laws or unless an exemption from registration is otherwise available. 8.2 INTEREST NOT TRANSFERABLE WHEN TRANSFER CAUSES TERMINATION OF PARTNERSHIP FOR TAX PURPOSES. Without the written consent of the General Partners, a Limited Partner may not sell, exchange, transfer, assign, give, or otherwise dispose of all or part of the interest owned by such Limited Partner if the interest sought to be so transferred, when added to the total of all other interest sold, exchanged, transferred, given, or otherwise disposed of within a period of 12 consecutive calendar months prior to the proposed date of such transfer, would, in the opinion of counsel for the 15 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] r. Partnership, result in the termination of the Partnership for federal or state income tax purposes. 8.3 TRANSFER OF INTEREST. A Limited Partner may not sell, exchange, transfer, pledge, encumber or assign all or a portion of his or her interest in the Partnership without the prior written consent of all of the General Partners. Any approved transfer shall be subject to the restrictions contained in Sections 8.1 and 8.2. 8.4 SUBSTITUTION. Subject to Sections 8.1, 8.2, and 8.3, a transferee of an interest in the Partnership shall be admitted to the Partnership as a substituted limited partner only upon satisfaction of all of the following conditions: (1) The transferee executes a counterpart of this Agreement, as amended, pursuant to which such transferee agrees to be bound by the terms and provisions of this Agreement, as amended; and (2) The General Partner consents to the admission of such transferee as a substituted limited partner, which consent may be arbitrarily and unreasonably withheld. In the event a permitted transferee does not become a substituted limited partner in accordance with this Section 8.4, such transferee shall have the right only to receive allocations of profits and losses of the Partnership in accordance with Section 3 and the distributions described in Sections 4 and 10.2 with respect to the interest transferred to such transferee , and such transferee shall not have the right to exercise the rights of a limited partner, including, without limitation, the right to inspect or obtain records under Section 6.5. 8.5 TRANSFER IN VIOLATION OF AGREEMENT. If any interest in the Partnership is transferred, sold, exchanged, pledged, encumbered or assigned, whether voluntarily or involuntarily, in violation of this Agreement, such transfer shall be void. 9. DEATH, INCOMPETENCY, DISSOLUTION, BANKRUPTCY, WITHDRAWAL, OR REMOVAL OF PARTNER 16 - LIMITED PARTNERSHIP AGREEMENT (dcr:stear001.001] 9.1 GENERAL PARTNER 9.1.1 EVENT OF DISSOLUTION. Except as otherwise provided in this Section 9.1.1, the occurrence of any one of the following events ("Event of Dissolution") to a General Partner shall cause dissolution of the Partnership, unless there is at least one other General Partner who agrees to carry on the business of the Partnership : (1) With respect to a General Partner who is a natural person, the death of such General Partner; (2) With respect to a General Partner who is a natural person, the entry of a decree by a court of competent jurisdiction adjudicating such General Partner incompetent to manage his or her person or estate; (3) A General Partner (a) makes an assignment of all or substantially all such General Partner's assets for the benefit of creditors, (b) files a voluntary petition in bankruptcy, (c) is adjudicated a bankrupt or insolvent, (d) files a petition or answer seeking for such General Partner any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or rule, (e) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against such General Partner in any proceeding of the foregoing nature, or (f) seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of such General Partner or all or any substantial part of such General Partner's assets; (4) The withdrawal from the Partnership by a General Partner. 9.1.2 CONTINUATION. If an Event of Dissolution occurs to the General Partner, the occurrence of such Event of Dissolution shall not cause a dissolution of the Partnership if all the Partners, within 90 days after the occurrence of such Event of Dissolution, unanimously agree in writing to continue the business of the Partnership and to the appointment of a successor general partner if necessary or desired; the General Partner or such General Partner's legal representative or successor in interest 17 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] 4 shall continue to serve in the capacity of general partner until the earlier of the expiration of such 90-day period after the occurrence of such Event of Dissolution or the election of a successor general partner. 9.1.3 CONVERSION. In the event the business of the Partnership is continued after the occurrence of an Event of Dissolution to a General Partner, such General Partner shall become a limited partner with respect to such General Partner's interest in the Partnership, shall be released from all obligations to manage the business and internal affairs of the Partnership under Section 5, and, unless otherwise agreed, shall not be entitled to receive any fees (except for those fees that have accrued but are unpaid) under Section 5.5. Upon the conversion of such General Partner's interest in the Partnership to the interest of a limited partner, such General Partner's voting rights under this Agreement shall terminate. The Partnership shall indemnify and hold harmless such General Partner against any and all liabilities, losses, and expenses paid, incurred, or suffered by such General Partner arising from or in connection with outstanding Partnership liabilities and obligations. Such conversion shall be effective upon the filing of an amendment to the Certificate of Limited Partnership in the office of the Secretary of State of Oregon. 9.1.4 RESTRICTION ON TRANSFER OF INTEREST BY GENERAL PARTNER. Except as otherwise provided in this Section 9.1.4, a General Partner shall not sell, exchange, transfer, assign, pledge, give, or otherwise dispose of such General Partner's interest in the Partnership before the expiration of the term of the Partnership. A General Partner who is also a Limited Partner may transfer all or part of its interest as a Limited Partner only as provided in Section 8. A General Partner that transfers its General Partnership interest shall not be liable to the Partners or the Partnership for breach of this Agreement, but rather such transfer shall constitute a conversion of such interest under Section 9.1.3 and the remaining Partners may thereafter elect to continue the Partnership as provided in Section 9.1.2. 9.2 LIMITED PARTNER. The occurrence of any of the following events to a Limited Partner shall not cause a dissolution of the Partnership: (1) The death of a Limited Partner who is a natural 18 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] person; (2) The entry of a decree by a court of competent jurisdiction adjudicating a Limited Partner who is a natural person incompetent to manage such Limited Partner's person or estate; (3) The assignment by a Limited Partner of all or a substantial part of such Limited Partner's assets for the benefit of creditors, the filing by a Limited Partner of a voluntary petition in bankruptcy, or the adjudication of a Limited Partner as a bankrupt or insolvent. Upon the occurrence of any of the foregoing events, the legal representative or successor in interest of such Limited Partner shall succeed to the interest owned by such Limited Partner, subject to compliance with the provisions of Section 8. 9.3 DESIGNATION OF BENEFICIARY. A Partner may designate a beneficiary of such Partner's ownership interest upon such Partner's death by written notice of such designation to the General Partners. The beneficiary designation shall remain in effect until amended or revoked by such Partner. Upon the death of the Partner the designated beneficiary shall be a transferee of the ownership interest of the deceased Partner and the admission of such transferee as a Partner shall be subject to the terms of this Agreement. 10. TERMINATION 10.1 EVENTS OF TERMINATION. The Partnership shall dissolve upon the occurrence of any one of the following events: (1) The expiration of the term of the Partnership set forth in Section 1.5; or (2) Upon the occurrence of an Event of Dissolution to a General Partner under Section 9.1.1, if there is no remaining General Partner and if all the Partners fail to agree. in writing to continue the business of the Partnership and to the appointment of one or more successor general partners within 90 days after the occurrence of such Event of Dissolution. 19 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] 10.2 LIQUIDATING DISTRIBUTION OF PARTNERSHIP ASSETS. Upon the dissolution of the Partnership as provided in Section 10.1, the General Partners, or such other persons duly authorized by law (the General Partners or such other persons referred to as the "Liquidating Partner") shall wind up the affairs of the Partnership, shall liquidate the assets of the Partnership as promptly as possible but in an orderly and businesslike manner so as not to cause undue sacrifice, and shall distribute the assets of the Partnership. Upon the dissolution of the Partnership as provided in Section 10.1, the General Partners shall cause the Certificate of Limited Partnership to be canceled. The Liquidating Partner, in the exercise of business judgment and if commercially reasonable, may determine not to sell all or any portion of the assets of the Partnership, including, without limitation, the Property, in which event such assets shall be distributed in kind. The proceeds of sale (and all other assets of the Partnership to be distributed in kind) shall be applied and distributed in the following order of priority: (1) To the extent permitted by law, to creditors, including Partners who are creditors, in satisfaction of liabilities of the Partnership, other than liabilities for distributions to Partners; (2) To the setting up of any reserves that the Liquidating Partner determines to be reasonably necessary for contingent, unliquidated, or unforeseen liabilities or obligations of the Partnership or of the Partners arising out of or in connection with the Partnership. Such reserves, in the discretion of the Liquidating Partner, may be paid over to an escrow agent selected by the Liquidating Partner to be held by such escrow agent for the purpose of disbursing such reserves to satisfy the liabilities and obligations of the Partnership or of the Partners arising out of or in connection with the Partnership, and at the expiration of such period as the Liquidating Partner may reasonably deem advisable, distributing any remaining balance as provided in subsections (3) and (4) below; provided, however, that in the event a distribution under subsection (1) above has not been made by reason of applicable law, then any balance remaining shall first be distributed pursuant to subsection (1) above. (3) To Partners and former Partners in satisfaction of 20 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] • liabilities for distributions; and (4) To Partners to the extent of, and in proportion to, the positive balances of their Capital Accounts (after taking into account all adjustments thereto for the taxable year during which the liquidating distributions occur) in accordance with, and within the time limits prescribed by, Treasury Regulation §1 .704-1 (b) (2) (ii) (b) (2) . 10.3 LIQUIDATION OF PARTNER'S INTEREST. If the interest of any Partner in the Partnership is liquidated within the meaning of Treasury Regulation §1.704-1(b)(2)(ii)(g), liquidating distributions shall be made in accordance with that Partner's positive Capital Account balance in accordance with, and within the time limits prescribed by, Treasury Regulation §1.704-1 (b) (2) (ii) (b) (2) . 10.4 RESTORATION OF NEGATIVE CAPITAL ACCOUNT BALANCE. If, at the time of any termination of the Partnership governed by Section 10.2 or of any liquidation of a Partner's interest in the Partnership governed by Section 10.3, the Partner's Capital Account has a deficit balance after giving effect to all contributions, distributions and allocations for all taxable years, including the taxable year during which the termination or liquidation occurs, such Partner shall make a capital contribution to the Partnership in the amount needed to restore such deficit balance to zero in compliance with Treasury Regulation §1.704-1(B) (2) (ii) (b) (3) . 11. ADMISSION OF ADDITIONAL PARTNERS 11.1 ADMISSION OF ADDITIONAL GENERAL PARTNERS. An additional general partner may be admitted to the Partnership subject to the following conditions: (1) All the Partners shall have consented in writing to the admission of such additional general partner; (2) All the Partners shall have consented in writing to an amendment to this Agreement that reflect the manner in which the profits and losses of the Partnership shall be allocated among the General Partners and the Limited Partners after the admission of such additional general partner; 21 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] i (3) Such additional general partner shall have executed a counterpart of this Agreement, as amended, pursuant to which such additional general partner agrees to be bound by the terms and provisions of this Agreement, as amended; and (4) An amendment to the Certificate of Limited Partnership shall be filed in the office of the Secretary of State of Oregon to reflect the admission to the Partnership of such additional general partner. 11.2 ADMISSION OF ADDITIONAL LIMITED PARTNERS. The General Partners may admit an additional limited partner to the Partnership upon the execution by such additional limited partner of a counterpart of this Agreement, as amended, pursuant to which such additional limited partner agrees to be bound by the provisions of this Agreement, as amended. 12.0 AMENDMENT The affirmative vote or written consent of each General Partner and the affirmative vote or written consent of Limited Partners owning a majority of the ownership interest in the Partnership shall be required to amend this Agreement; provided, however, that in the event the affirmative vote or written consent of Limited Partners owning greater than a majority of the interest then outstanding is required under certain provisions of this Agreement for action to be taken by the Partnership, the affirmative vote or written consent of each General Partner and the affirmative vote or written consent of Limited Partners owning such greater percentage of the interest then outstanding shall be required to amend such provisions of this Agreement. In no event shall an amendment to this Agreement change a Partner's ownership interest or rights to distributions and allocations without the consent of such Partner. Any amendment to this Agreement must be in writing. 13. POWER OF ATTORNEY Each Limited Partner appoints each General Partner as such Limited Partner's attorney-in-fact with power and authority to act in the name of and on behalf of such Limited Partner to execute, acknowledge, verify, publish and file the following documents: 22 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] R 'R (1) All amendments to this Agreement; (2) Any certificates, instruments, and documents, including assumed business name registrations, as may be required by any federal or state law; and (3) Any documents or instruments that may be required to effect the continuation of the Partnership, the admission of partners, or the dissolution and termination of the Partnership, provided that any such continuation, admission, or dissolution and termination is in accordance with the provisions of this Agreement. The power of attorney granted by each Limited Partner to each General Partner is a special power of attorney coupled with an interest, is irrevocable, and shall survive an assignment by a Limited Partner of all or any portion of such Limited Partner's interest. 14. MISCELLANEOUS PROVISIONS 14.1 BINDING EFFECT. This Agreement shall be binding on and inure to the benefit of the parties and their heirs, personal representatives, successors, and to the extent permitted by Section 8, assigns. 14.2 NOTICES. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be mailed by certified mail, return receipt requested, postage prepaid, addressed to the parties at their last known address. 14.3 ATTORNEY FEES. If any suit or action is filed by any party to enforce this Agreement or otherwise with respect to the subject matter of this Agreement, the prevailing party shall be entitled to recover reasonable attorney fees incurred in preparation or in-prosecution or defense of such suit or action as fixed by the trial court, and if any appeal is taken from the decision of the trial court, reasonable attorney fees as fixed by the appellate court. 14.4 HEADINGS. The headings used in this Agreement are solely for convenience of reference, are not part of this 23 - LIMITED PARTNERSHIP AGREEMENT (dcr:stear001.001] 1 Agreement, and are not to be considered in construing or interpreting this Agreement. 14.5 ENTIRE AGREEMENT. This Agreement sets forth the entire understanding of the parties with respect to the subject matter of this Agreement and supersedes any and all prior understandings and agreements, whether written or oral, between the parties with respect to such subject matter. 14.6 SEVERABILITY. If any provision of this Agreement shall be invalid-or unenforceable in any respect for any reason, the validity and enforceability of any such provision in any other respect and of the remaining provisions of this Agreement shall not be in any way impaired. 14.7 GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the state of Oregon. 14.8 VENUE. This Agreement has been made entirely within the state of Oregon. This Agreement shall be governed by and construed in accordance with the laws of the state of Oregon. If any suit or action is filed by any party to enforce this Agreement or otherwise.with respect to the subject matter of this Agreement, venue shall be in the state courts in Deschutes County, Oregon. Ge~ral' Partner r r Gen ral Partner 'c W General 'Partner Lim'Ped / artner iZim ed Partner mited Partner 24 - LIMITED PARTNERSHIP AGREEMENT [dcr:stear001.001] i" row COURTHOUSE ANNEX, ROOM 102 * PHONE 3868558 BEND, OREGON 87701 O y Apn.it 23, 1981 Joyce.Bahney P.O. Box 683 .PiLinev.itte, O)iegon 97754 RE: MP-80-61 Dean Ms. Banney: Yours %eque.6t gon a m.inon .land paict,it.ion has been appnoved. Sh.ou.Zd you need any gunthe,% assistance, p.Zease contact this obb.ice. Sincene.Zy, DESCHUTES COUNTY PLANNING DEPARTMENT John E. Andersen, P2ann..ng D.ineeton Gaa 4 .J.w:~ Craig J. Sm cth Associate Planner CJS/ns cc/ b.i.Ze copy Road Dept. B.Zdg "D ept . Ass ess or Surveyox. State Rea.Z Estate Sun Country Eng. Des. NatI t Poieest I 1 L _ HOWARD ROAD' . z o o N 01°2141°E 2641 92 I I zx i u . o c z 1320-W 1320.96 I ov g o ~_0 lvo I _ D coD c ° a cai n co I r rn O N ao I ° i m m 16 n 0 N.02°02"33 E-2636.60 cn'D. co M . # 80 N rmrl oG)'~ co co o . oa ~D A m o z m P . n F m u- 2C o . 00 00 00 a to m fn i c .0 - m m :0 "I D < 0 0 -4 r .3 -.m m{ I 1 o o • w cif Z c m ~ x. o. Z x N illy F . . .v, ~ Z 0D A M. 3 D m m cn xy a = r m M _ z I D m N ~ o < m z ~ `D C7 °m 3 ° D m g m a ~ o z o m D z ~ N co :m 0 ~ 1+ v7 m n c c n cr n-~ r" - vo n YD rn a -4 3 ° Z . -m r f" ro -I O , m Nm m C p 'Ai O m _ Z p~ .r PROPOSED METHOD OF SEWAGE DISPOSAL (Check one and Provide Requested Information) t) EXISTING SEWERAGE SYSTEM (Feet $5 for one lots slo for two or more lots) (I) . Parcel is located within the boundaries of and aart be provided sewerage service by the following entity which Oats and operates a sewerage system: Now of Entity . Shot= Identification ' Address of Entity City, Zip Coda (2) Present statue of sewers or sewer "tensions to serve parcel: . (a) Plane for seavrs ( 1 have ( ) have not been pro's d. . (b) Plana for sewers ( J have ( ) have not been approved by DEQ. (aJ Sewers have f J have not been installed. (3) STATEMENT OF CERTIFICATION BY SM&_RACS SYSTEM OVIIER (Separate staeeoant may be attached if available), As representative of the owner of the sewerage system named in (1) above, ' I hereby certify that sewerage service will be provided for the above described • parcel, that said sewerage system has capacity to serve the parcel, and that the above information relative to the,status of sa-h sewerage service is correct. to the beat of my knowledge. Signature of Representative Title Date I 1 PROPOSED NEW SEWERAGE SYSTEM (Fee: $5 for One lots $10 for tw or mre lots) Mae DEQ approved the proposed system prev(ousLy in writinq? ( ) No ( ) Yee, on (date) Bas DEQ issued q Haste Discharge Permit for the proposed systam? ( ) No ( ) Yes, Par-sot )lq, SUTWRPACE SEWAGE DISPOSAL SYSTEM (Pe a/ 2 U.par lot). Show location of proposed subsurface systam or systems on the plat plan for each site which is attached as Exhibit A. For a oubdiviaion of four or more sited, attach as Exhibit B: 2. A topograohioal srrp 2. Rates of elope data 3. Soils data 4. Actor table data S. Draina0a data (earfaae and ub-fh.a) 6. lbter supply so;,rce and dist'ribut'ion 6ystema' data 7. Ezi6ting Subsurface sewage disposal systsme location, Special Instruction: DEQ nn¢/or its contract agent must complete a site-investigation islets a report can be given. 70 facilitate such investigation; prepare two t2) backhoe test holes at least lift. deep and approximately 75 ft. apart (at the same approximate ground surfaea elevation) at the site of each proposed system. , Teat holes have been prepared ?>Q will be prepared by I HAVE ATTACHED THE REQUIRED EXHIBITS AND FEE SPECIFIED IN THE IDST:JCTIONS ANit O:: THIS APPLICATION AND HEREBY REQUEST PROM THE DEPARTMENT OF ENVIRONMENTAL QUALITY A REPORT OF SOITADILI:Y OF THZ ABOVE DESCRIBED :=HOD OP SEWAGE DISPOSAL FOR THE ABOVE DESCRIBED PARCEL. None of. Applicant C' ~ ,4 a VS Signature of Applicant a ArlAmss of ennlirwrnt Title .-y . . 4n_ City, Slate, Zip Co / O Phone: Illat+l!!,!R!!!!,1!!!i!!!!te!!!,!!!(1!e!1!llllf l+l !!!!aI!ll4II1!! 114!!,a!!~'4,,,t!!Illlla!!!„l11141,!!1l111A11I ellRt11I111el1alal!!!• (FOR DEQ OR ACEPT L'SE 0,7LY) , Comments mad recommendations based on Subsurface Site Investigation by DEC or Contract Agent: This parcel has been evaluated by a member of this department. Studies' including but not limited: to soil conditions, water table circumstances and topographical variations were conducted. It is . the opinion of this department that it is feasible to.ihstall a septic tank.and subsurface drain field to serve a residence on this parcel. This evaluation report shall remain-in effect until issuance of a permit to construct, unless in the meantime conditions on subject or adjacent properties have been altered in any manner which'would'prohibit issuance of permit in which case the evaluation report shall be considered nu11 oz DESCHUTES COUNTY ENVIRONMENTAL HEALTH ;tro:g.,R.1 yg~aca K. Glover, R.S. Data 4-14-81 . RR.1 •11,1„ ♦R.1.'! ry BEND, OREJPAJJgJg1.f DEQ or Agent Relative to Abo%e•Application•••+••1•,,••1.1+,w+ •+1••••••• [X] The above described method of sewage disposal is approved sr=lect to the following Conditions: The above described method of sewage disposal is not approved for the foll"ing reasons: one building site approved subject to the following conditions 1. The soil in the proposed area of the drainfield and the replacement area cannot be altered except as a condition of the permit. 2. 'Drainfield trench limited to 24 inches'from original ground surface. 3. A permit is required and must be obtained from the Deschutes .County Health Department prior to constructing the system. DESCHUTES COUNTY ENVIRONMENTAL HE T 18SOutes'County Courthouse Annex oho K. G ofvet Agent/DEQ Signature r R.S. 4-14-81 For lhn weparawn Jr Date. Quality gem epresen a Eve . DEQ Form 4/15174 Ir PROPOSED METHOD OF SEWAGE DISPOSAL (Check one and Provide Requested Information) ( ) EXZSTIDG SEWERAGE SYSTEM (Pee, $5 for one lot, $10 for two or more lots). . ParceZ is located within the boundaries of and can be providad sewrcge serrioa by 0.0 folloan:ng entity which owns and operates a sewerage system: NOW of Entity Stetem Idantification Address of bhtity. City, Zip Coda (2) Present status of sewers or sewer exteraione to nerve paceZ: (a) Plane for sewers ( ) have ( } have not been prepared. (b) Plans for sewers f 1 have ( ) have not been app;-oved by DEQ. (e) &were O have ( ) have not been inetaZted. (3) STATEMENT OF COWZFICATION BY SEWERAGE SYSTEM OL7)ER (Separate state t may be attached if available).' As representative of the owner of the sewerage system naiad in (1) above, • I hereby certify that sewerage service will be provided for the above described parcel, that said sewerage system has capacity to serve the parcel, and that ' the above information relative to the status of su=h sewe_ge service In correct to the beat of my knowledge. . Signature of Repreaentative Title ` Dots l 1 PROPOSED NEW SEWERAGE SYSTEM (Peer $5 for one lot, $10 for two or more lots) ' Rae DEQ approved the proposed eyetea previously in writing? [ J No- ( J Yee, on (date) . Was DFiQ issued a Waste Discharge Parnrit for the proposed system? ( ) No ( 1 Yea, perm! 1)q. ' SUBSURFACE SEWAGE DISPOSAL SYSTEM (Pce f.'Z O,per lot) . show Zooation of proposed aubourfaee system or systems on the plat plan for each site which is attached as Exhibit A. For a subdivision of four or more sites, attach as Vxhibit B: A boyograph Z map 2. Rates of slope data 3. SoiZa data 4. Titer tabla data d.' Drainage data (aurfeae and wrbsurface) C. 1"ater ouppZy go~rae and distribution systems data 7. Existing aubeurfaca seuage.disposaL systema location Special Instruction: DEQ and/or Sts contract agent must complete a site •investigation before a report can be given. To facilitate such investigation, prepare two ta) backhoe tesC holes at least aft. deep and • approximately 7S ft, apart (at the same approximate ground surface elevation) at 'the site of each . proposed system. . rest hoZes have been Prepared (jd witt be prepared by Z, . I HAVE ATTACHED THE REWIRED EXHIBITS AND PEE SPECIFIED In THE ItrSTXJCTIOFS AND 01 THIS APPLICATION AD HEREBY REQOESf FROM THE DEPARTMENT OF ENVXRONMErrTAL QUALITY A REPORT OF SUITABILITY OF 713. ABOVE DESCRIBED METHOD OF SEWAGE DISPOSAL FOR THE ABOVE DESCRIBED PARCEL. Name of Applicant Signature of Applicant _a.- Addraes of apnZi-,n e'itle City, Slate, Zip Code ~ 09 f7 Phone: Data -d/- 111.111111111144111111111111111111{.111111111111{1411111114111111111111111'Af 1111111.1.1♦III.II1111.111111f 111II f11114111111111fIIff, (FOR DEQ OR AGEWT esE orrtY) COacents and recommendations based on Subsurface Site Investigation by Day or Contract Agent,- This parcel has been evaluated by.a member of this department. Studies including but not 1•imited to soil conditions, water table circumstances and. topographical variations were conducted. It is the opinion of this department that it is not feasible to install a standard septic tank and.._ drainfield on this parcel: This parcel is suitable for a sand filter sewage treatment and disposal. system. This evaluation report shall remain in effect until issuance of a permit to construct. DESCHUTES COUNTY ENVIRONMENTAL HEALT9 Deschutes County Courthouse Annex e...• . A -n nCMn nn ~ n , E(`riD -rv signature nhn of DEQ or Agent Relatlve to Abo•,e EPPlication The above described method of sewage disposal is approved subject to the )allowing conditions: The above CcatzSbed method of sewage disposal is not approved for the following -."On., One building site. approved subject to the following conditions) 1. The soil in the. proposed. area of the drainfield and the replacement area cannot be altered except as a•condition of the permit. 2. 'A permit is required and must be obtained from the Deschutes County.Health Department prior to constructing the system. OtSCHUTES COUNTY tNVIRONMENTAL HEA Deschutc; &urrty Courthouse Annex eve~_r n K. - 1~ R.S. . eYa. 4-14-81 For the Depmrtwnt ur E~'nvrrorvnental Que11 E A Date Q gent Representative DEQ Form 4/15/74 W_ PROPOSED HETHOU Uh bl:Mt UISPUSAL (Check ora and 'provide Requeeted Ir„ ormation) 1) EXISYIHG SEHERAGE SYSTEM (Fees $5 for one lot, $10 for two or core lot.) (7) which cal is located within the boundarise of and oc: be pravided eswercgs service by the f R oLlowirg entity which owr: and o Entity a seuerago system. . Rama of Ebtity Sbetem Identification Address of Entity City, Zip Code (2) Present status of sewers or swear extensions to ssroa part e1: (a) Plane for sewers (1 have O hc:se not been prma:ed. (b) Plans for ,aware has P=o not been appraved bF DEQ. (a) sewers ( ) have (1 has. not been iretaZZed. (3) STATE'2AT OF CERTIFICATION By SSHERACE SYSTM OWNER (Separte statement mcy be attached if available). As representative of the owner of the sewerage system na¢ed in (1) sheen, I.hereby.cartify that sewerage service will be provided for the above' described parcel, that said sewerage system has capacity to serve the parcel, and that the above information relative to the status of su:h sewerage service Is correct to the best of my knowledge. . signature of Representative . - Title . Date [ ) PROPOSED NEW SEWERAGE SYSTEM (Fee: $5 for one lot, $10 for tw or core lots) Ras DEQ approved the proposed system previously in writing?( J XO let, on (date) . . Has DRQ issued a Haste Discharge Pursuit for the proposed 'system? XO lee, Pest Na 14* SUBSURFACE SEWAGE DISPOSAL SYSTEM (Pedlacs,per lot) Show looation of proposed subsurface eyetwa or systems on the plat'pZan for each site which it attached. as Exhibit A. For a subdivision of four or rare sites, attach As E-hit L B: 7. A topographical. sap 2. Rates of at" data S. Sails data 4. Hater table dcta S. Drainage dot. (aurface and subsurface) S. F-t- ;reply ---a a..' distribution system. data ien y. Slitting subsurface asoage ;1-. anZ .Pat". la .L Special Instruction: DEQ and/or its aontract agent must complete a site investigation --fore a report can be given. To facilitate such investigation, prepare two b) batkhoe test-holoa at. least 3ft., deep and . approximately 75 ft. apart (at the same approximate ground surface elevation)'at the site of each. . proposed system. • Test holes have been prepared 1)sCvZZl be prepared by I HAVE ATTACHED THE REQUIRED EXHIBITS AND FEE SPECIFIED It: THE INSJP:IC:IO:IS ALto CS THIS APPLICATION AND HEREBY REQUEST FROM THE DEPARTMENT OF ENNIRONMENTAL QUALITY A REPORT OF SCITASILI_Y OF TF3 ABOVE DESCRIBED METHOD OF SEWAGE DISPOSAL FOR THE ABOVE DESCRIBED PARCEL. Mane of Applicant Signature of Applicant ~q ,i . A,ldxree of A!"li•wrgg .7 "itleV_w"C . . tbS Slate, Zip co: dde -W PhOne: Data ti . A4A4444.A444AAA{4A414{{ .A4AAAAAA{A44A4A4444A444AA14444 A44A4;4A44~.444AAA'4.ff414A4..... A4"4{444444.+1144*4444a1{444A4*44.*.444.41... (FOR DEQ OR ACSJT LSE O.JLYJ ' Comsents and recommendations.based on Subsurface Site Investigation by DES or Contract Agent, This parcel.has been evaluated''by'a:4ember;of this department. Studies including but:not limited' to ,soil.conditlons~-water table circumstances and.-topographical variations were conducted. .it is the opinion of this. department, that it is not feasibl,e•to install a standard septic tank and, drainfi.eld on this parcel. This.parcel J.9. suitable for a sand filter. sewage treatment and disposal system. This evalution report shall remain in effect until issuance of a • permit to construct. CHUTES COUNTY ENVIRONMENTAL HEALTH tleschutes County Courthouse Ann ":ignatara .7ohri'K. Glover, R.S. Data 4 ^ 4^8I . ~BNDr'yY01 Statement of DEQ or Agen, Relative to Abo••e Application • ••j•,••• • .9,7 The above described method of sewage disposal is approved srSject to the following conditions: The above described method of sewage disposal in not approved- for the following reasons, . One building site.,approved subject to the'following ,condf,tionss 1, The. soil in the. proppsed area of the.'drainfield and the replacement area cannot be:altered except as i condition of.the'permi.t, 2. A permit. is regi7ired and 'must be obtained from the Deschutes County Health Department prior'to.aonsstruating the system. Note( The installation of a sand filter system is considerably-more expensive. than a standard septic tank and drainf' DESCHUTES COUNTY ENVIRONMENTAL HEALM Agent/om Deschutes County Courthou%,ftg4V,e a6epresen vQT' R.S. 4-14-81 Par the Gepara~e, E Date • ~HG6®Ne,g.~ppaalicr a >ve . DEQ Form 4/15/74 .