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2007-1378-Minutes for Meeting June 20,2007 Recorded 7/23/2007COUNTY NANCYUBLANKENSHIP,P000NTY CLERKDS U 2001.1318 COMMISSIONERS' JOURNAL 0112312441 49;29;13 AM 11111111111111111111111 1111111 Z-1 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 and Page , or as Fee Number V VOTES C 0 to -4 a { Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.ora MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, JUNE 209 2007 Present were Commissioners Michael M. Daly, Dennis R. Luke and Tammy Baney. Also present were Dave Kanner, County Administrator; and, for part of the meeting, Anna Johnson, Communications; Teresa Rozic, Property Management; Tom Anderson and Catherine Morrow, Community Development Department; Tom Blust, Road Department; Marty Wynne, Finance; Laurie Craghead, Legal Counsel; Timm Schimke, Solid Waste Department; Teri Maerki, Finance; David Givans, Internal Auditor; media representative Jeff Mullins of KBND Radio; and several other citizens. The meeting began at 1: 30 p. m. 1. Housing Works Annual Update. Laura Cooper and Cyndy Cook came before the Board. Ms. Cook said focusing on the continuum from homelessness to home ownership. They are doing an extensive gap analysis to see what services are available and what gaps exist, in addition to statistics of who is served. Emergency shelter and transportation are big issues. Horizon House provides transitional housing now. They oversee supportive housing - there are several sites now and some are planned. Numerous locations provide rental assistance and tax credits; others are in the works. Laura Cooper explained that their ultimate goal is to get people into homes of their own. The result of this is more stability in their lives and it frees up resources for others. A variety of plans could be used to help the buyers, who would be educated in their rights and obligations as homeowners. Developers are working with the group. (She provided an overview of the plan and the progress being made.) Minutes of Administrative Work Session Wednesday, June 20, 2007 Page 1 of 6 Pages Commissioner Baney asked if they are duplicating the services of Habitat for Humanity. Ms. Cook stated that they serve a small segment of the population; Housing Works has a diverse number of programs and funding sources. 2. Discussion of Proposed Fee Schedule. Dave Kanner said that Commissioner Baney had questions about the Community Development fee schedule. Commissioner Baney stated they are concerned but recognizes the County needs to attract and retain employees. Bill Robie of the Central Oregon Association of Realtors said that they understand the reasons for the increase. Tom Anderson gave an overview of other items in the schedule. There is a proposal to set up a deposit for Hearings Officer services. Commissioner Luke asked if they use an escrow-type account for this reason. None is used at this time. Catherine Morrow added that the solar fees could be discussed further at a future date. Regarding Property Management, Teresa Rozic stated that other counties are all over the board when it comes to fees; it is assumed that they assess the actual costs involved. Some counties have indicated that the fees are negotiated and are evaluated on case-by-case basis. Commissioner Baney wanted to be able to compare fees, but would like to see at least the actual cost of services covered, including what results from a time study. Commissioner Luke said that it will be difficult to charge an hourly rate, as an unexpected detail could run the time up. Teresa Rozic stated that a schedule that can be shared with the public might be the best solution so that they will understand not everything can be free. Dave Kanner said that it is hard to average, and someone ends up subsidizing in any case. In regard to the Solid Waste fees, Commissioner Baney stated that some of the citizens on the Budget Committee didn't support a raise in fees. She is also concerned that all of the $5 surcharge would go to the Road Department. Commissioner Luke indicated the same concern, but recognized that there are budget shortfalls within the Road Department that will be hard to address. Timm Schimke said that even the Baileys (of a local garbage hauling company) have indicated that the fees are less here than in other places. There would probably no problem with a fee spread out and paid by everyone. Minutes of Administrative Work Session Wednesday, June 20, 2007 Page 2 of 6 Pages Commissioner Luke asked about yard debris collection; Mr. Schimke stated that curbside collection is by subscription only at this time within the City of Redmond; it is now being offered within the City of Bend for an additional fee. Commissioners Luke and Daly would like any funds for the Road Department to be held for preservation, not general operations. Commissioner Baney expressed concern regarding using the funds from one department to subsidize the needs of another. Tom Blust said that Crook County is allocating a large portion of their solid waste fees to their Road Department. Commissioner Luke stated that he would like to put the entire amount in the Deschutes Junction project, for which the County is contractually obligated to ODOT. Dave Kanner said that he feels most should go into preservation, since that is where the funding has been cut. He also thinks it should be treated as one-time funding. Commissioner Daly explained that even though the County will get some timber receipt dollars in the future, this source of funding is winding down and another resource is needed to keep the Road Department operating. With the one-year extension of the Federal Forest money, the County will get about three million dollars. With about one million coming from the tipping fee increase, the County should be able to move $1 million to the Deschutes Junction project. The cost to individual homeowners for the tipping fee increase will be minimal. He feels all of it should go into the Road Department, as the Solid Waste Department doesn't need the dollars at this point. Commissioner Baney said that she doesn't like to "nickel and dime" and would like to perhaps see a $10 increase instead of $5, with the additional $5 going towards Solid Waste reserves. A general discussion occurred; it was concluded that the Solid Waste Department is not in crisis mode at this time, but the Road Department is. A portion of the funds will be put into the Deschutes Junction interchange project. The Commissioners directed Marty Wynne to prepare the budget documents as needed. Minutes of Administrative Work Session Wednesday, June 20, 2007 Page 3 of 6 Pages 3. Review of General Fund Projections. Marty Wynne presented a comparison of sustainability issues in the general fund. Annual revenues and expenditures are very close and balanced. Another issue is spending one-time revenues on ongoing expenses; it is safer to consider the increased revenue one-time so you don't rely on it in the future. In the Parole and Probation Department, funding is considered one-time; if it is calculated otherwise, it puts the numbers out of balance. Mr. Kanner would like to see the transfers to the Fair & Expo Center reduced over time; the opening of the RV park will provide the ability to collect a fee from State Parks. He also suggested making the Board an indirect fee entity. Mr. Wynne stated that the general fund groups seem a little light on their projections. The big departments are already spending down reserves; a 3% increase isn't enough. Commissioner Baney expressed concern about the general fund transfers into other departments; the departments seem to expect that amount to go up each year. Mr. Wynne stated that some is based on revenue coming into the County; if, for instance, property tax revenue decreases, the transfers will be less. Mr. Kanner said that the projection amount is an issue that the Commissioners will have to address. Commissioner Daly is concerned that not enough of the 1145 dollars is going to Parole and Probation; that the split with the Sheriff's Office some years ago has not be equitable to Parole and Probation. 4. Discussion of Items from Budget Committee. The Work Center bid came in above budget. There is also a decrease at Community Development due to a grant that was not received. Teri Maerki gave an overview of proposed changes to the proposed budget that was approved by the Budget Committee. Commissioner Baney said that she does not want to fund the Juvenile Crime Prevention program through Ready Set Go. Commissioner Luke stated he is concerned as well. Ready Set Go is not pushing to include this program. minutes or Administrative Work Session Wednesday, June 20, 2007 Page 4 of 6 Pages Mr. Kanner noted that the legislature has talked about additional funding for health and mental health programs, but this may not be known for a month or longer. The Health Department has indicated there are a few items that he wants to fund no matter what, and wants to take funding out of contingency if necessary. A lengthy discussion occurred. Mental Health would not have to lay off employees, but Health would have to cut staffing. Mr. Kanner provided an overview of what other counties are doing to address the use of Title II and Title III funding. (A copy is attached.) Commissioner Baney said she would go up to a 70/30 split. Commissioner Luke indicated an 80/20 split is appropriate. In regard to Title II money, Mr. Kanner stated that the County never sees this money. It goes to the Treasury. 5. Destination Resort Code Change Work Session. This item will be addressed at a future date, probably June 27. 6. Economic Development Grant Requests. None were offered. 7. Update of Commissioners' Schedules; Meeting Details. None were offered. 8. Other Items • Executive Session, called under ORS 192.660(2)(a), Employment of a Public Officer or Employee This item will be addressed at the Monday, June 25 work session. Board Action, pursuant to County Administrator Annual Performance Review This item will be addressed at the Monday, June 25 work session. Minutes of Administrative Work Session Wednesday, June 20, 2007 Page 5 of 6 Pages Being no further items to come before the Board, Commissioner Luke adjourned the meeting at 4:45 p.m. DATED this 20th Day of June 2007 for the Deschutes County Board of Commissioners. ATTEST: &"k~ &kv~ Recording Secretary & I ~ ~ /J a Z'w ichae a y, hair Dennis R. Luke, Vice Chair Tammy Baney, Co issioner Minutes of Administrative Work Session Page 6 of 6 Pages Wednesday, June 20, 2007 w ~ Q -c Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 P.M., WEDNESDAY, JUNE 209 2007 1. Housing Works Annual Update - Cyndy Cook 2. Discussion of Proposed Fee Schedule - Community Development, Property Management, Solid Waste 3. Review of General Fund Projections -Marty Wynne 4. Discussion of Items from Budget Committee 5. Destination Resort Code Change Work Session - Terri Payne 6. Economic Development Grant Requests 7. Update of Commissioners' Schedules; Meeting Details 8. Other Items 9. Executive Session, called under ORS 192.660(2)(a), Employment of a Public Officer or Employee IO.Board Action, pursuant to County Administrator Annual Performance Review PLEASE NOTE: At any time during this meeting, an executive session could be called to address issues relating to: ORS 192.660(2) (e), real property negotiations; ORS 192.660(2) (h), pending or threatened litigation; or ORS 192.660(2) (b), personnel issues Meeting dates, times and discussion items are subject to change. All meetings are conducted 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. 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. 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I,' O 0 00 O = O V 0) 0) w N V V M N N d - m N v1 u1 W p 00 o W m v) v) m a co w p 3 p c c 13 02 «~z p~ 1, N e o = 0 0 J 4 1 N N W c c 0 C O O C Q O O> N N W W m p' Q 0 W WOO o M d aNi W> > Q N N 3 eo W w W > > J 3 (9 H v v Z m 4 CL CL W v v (a Z m m O ~ 0 oo V VQQ oo m (L CL = m J C 1aa Ix U ~ H 4 0 FY0708v0809 Statement of Financial Operating Data FY 2007-08 FY 2008-09 $ % Approved Projected Variance Var. RESOURCES: Beg. Net Working Capital 5,920,000 5,862,822 (57,178) -1% Revenues Property Taxes 18,550,000 19,650,000 1,100,000 6% Gen. Rev. - excl. Taxes 2,528,574 2,440,158 (88,416) -3% Assessor 1,077,170 1,088,565 11,395 1% County Clerk 2,280,100 2,283,360 3,260 0% BOPTA 17,464 17,464 - 0% Board of County Comm. 100 100 - 0% District Attorney 273,400 278,400 5,000 2% Finance/Tax 249,845 249,845 - 0% Veterans 72,000 72,000 - 0% Property Management 85,000 91,000 6,000 7% Grant Projects 2,000 2,000 - 0% Total Revenues 25,135,653 26,172,892 1,037,239 4% TOTAL RESOURCES 31,055,653 32,035,714 980,061 3% REQUIREMENTS: Expenditures Assessor 3,770,112 3,946,171 176,059 5% County Clerk 1,615,056 1,602,455 (12,601) -1% BOPTA 66,016 62,193 (3,823) -6% BOCC 776,979 756,966 (20,013) -3% District Attorney 4,586,859 4,921,405 334,546 7% Finance/Tax 849,249 874,249 25,000 3% Veterans 265,481 274,608 9,127 3% Property Management 243,970 261,531 17,561 7% Grant Projects 96,960 104,824 7,864 8% Non-Departmental 1,303,612 1,242,912 (60,700) -5% Contingency 5,192,855 5,604,946 412,091 8% 18,767,149 19,652,260 885,111 5% TOTAL REQUIREMENTS 31,055,653 32,035,714 980,061 3% NET (Resources - Requirements) - - c DESCHUTES COUNTY General Fund FY 2007-08 FY 2008-09 Proposed Projected $ % Transfers Out Transfers Out [Difference Difference Juvenile Justice 5,933,223 6,271,417 338,194 5.7% CC & F 349,200 369,104 19,904 5.7% Miscellaneous 100,000 - (100,000) -100.0% Health 2,547,485 2,692,692 145,207 5.7% Mental Health 1,462,516 1,545,879 83,363 5.7% Government Ctr. 43,970 - (43,970) -100.0% Building Services 210,000 245,000 * 35,000 16.7% HealthyStart 74,777 79,039 4,262 5.7% Dog Control 160,000 167,200 7,200 4.5% Parole & Probation 343,000 - (343,000) -100.0% Victims' Assistance 120,445 127,311 6,866 5.7% Info Technology 60,342 64,666 4,324 7.2% CDD 75,000 - (75,000) -100.0% Fair/Expo 270,000 300,000 30,000 11.1% Justice Court 521,146 521,146 - 0.0% Health - Other 6,000 - (6,000) -100.0% Mental Health - Other 10,000 - (10,000) -100.0% CC & F - Other 1,400 - (1,400) -100.0% 12,288,504 12,383,454 94,950 0.8% * Revised County Title II Title III Polk 15% 85% Yamhill 0% 100% Washington 100% 0% Benton 10% 90% 07-108 split to be decided at June 26 Board meeting Hood River 60% 40% 06-'07 split; haven't decided on FY '08 Jackson 0% 100% Lane 49% 51% 06-'07 split. 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TA 04-4 Decision TA-04-4 is an applicant initiated amendment to County destination resort code. At a May 7 work session the Board of County Commissioners (Board) discussed the issue of allowing phasing of the required 150 overnight lodging units. Since that time, the issue of phasing has been addressed by the State Land Use Board of Appeals (LUBA). II. ISSUE 6 PROPOSAL: Allow phasing of the required 150 overnight lodging units over a maximum of 14 years On 5-14-07, LUBA remanded the County's decision on the Thornburgh destination resort. In Gould's Third Assignment of Error, LUBA determined that the County can not allow a resort to bond the entire 150 units of overnight lodging. Instead, the first 50 overnight units must be built before any individual lots or units can be sold. "DCC 18.113.060(A)(5), which allows all of the required 150 units of overnight lodging to be `physically provided or financially assured' is inconsistent with the requirement in ORS 197.445(4)(b)(B) that the first 50 of those 150 units `must be constructed prior to the closure of sale of individual lots or units,' (LUBA No. 2006-100 pg 23) It should be noted that the attorneys representing TA-04-4 disagree with the LUBA interpretation and that both Gould and Thornburgh have appealed the LUBA decision to the Court of Appeals. However, until there is further legal clarification the County must follow the LUBA decision. Staff has prepared draft language that addresses the LUBA decision, the applicant's request and the concerns expressed by the Board over phasing. The proposed language is open for further discussion and does the following: 1. Requires all resorts to build the first 50 overnight lodging units before any lot sales (LUBA) 2. Allows resorts to phase the next 100 units as per statute or (applicant request) 3. Allows the resorts to bond the next 100 units if (Board concerns) a. All 100 remaining overnight units are built within 2 years of the initial lot sales b. The 2:1 ratio is maintained at all times Attachments 1. DCC 18.113.060(A): Current language for overnight lodging 2. DCC 18.113.060(A): Staff draft language for overnight lodging Quality Services Perfortned with Pride t E Attachment 1: Current Deschutes County Code 18.113.060. Standards for destination resorts. The following standards shall govern consideration of destination resorts: A. The destination resort shall, in the first phase, provide for and include as part of the CMP the following minimum requirements: 1. At least 150 separate rentable units for visitor-oriented lodging. 2. Visitor-oriented eating establishments for at least 100 persons and meeting rooms which provide eating for at least 100 persons. 3. The aggregate cost of developing the overnight lodging facilities and the eating establishments and meeting rooms required in DCC 18.113.060(A)(1) and (2) shall be at least $2,000,000 (in 1984 dollars). 4. At least $2,000,000 (in 1984 dollars) shall be spent on developed recreational facilities. 5. The facilities and accommodations required by DCC 18.113.060 must be physically provided or financially assured pursuant to DCC 18.113.110 prior to closure of sales, rental or lease of any residential dwellings or lots. 6-20-07 Attachment 2: Proposed Deschutes County Code 18.113.060. Standards for destination resorts. The following standards shall govern consideration of destination resorts: A. The destination resort shall, in the first phase, provide for and include as part of the CMP the following minimum requirements: 1. At least 150 separate rentable units for visitor-oriented overnight lodging as follows: (a.) The first 50 overnight lodging units must be physically provided prior to the closure of sales, rental or lease of any residential dwellings or lots. (b.) The resort may elect to phase in the remaining 100 overnight lodging units as follows: (i.) At least 50 of the remaining 100 required overnight lodging units shall be constructed or guaranteed through surety bonding or equivalent financial assurance within 5 years of the closure of sale of individual lots or units, and; (ii.) The remaining required overnight lodging units shall be constructed or guaranteed through surety bonding or equivalent financial assurance within 10 years of the closure of sale of individual lots or units. (iii.)If the developer of a resort guarantees a portion of the overnight lodging units required under subsection 18.113.060(A)(1) through surety bonding or other equivalent financial assurance, the developer shall begin construction of the subject overnight lodging units within 4 years of the date of execution of the surety bond or other equivalent financial assurance. (c.) If the resort does not elect to phase as defined in 18.113.060(A)(1)(b), they may elect to financially assure the final 100 units pursuant to DCC 18.113.110, provided that; (i.) The remaining 100 units are physically provided within 2 years of initial lot sales; and (ii.) The 2:1 accommodation ratio required by DCC 18.113 is maintained at all times. 2. Visitor-oriented eating establishments with seating for at least 100 persons and meeting rooms which provide seating for at least 100 persons. 3. The aggregate cost of developing the overnight lodging facilities, developed recreational facilities, and the eating establishments and meeting rooms shall be at least $7,000,000 (in 1993 dollars). 4. At least $2,333,333 of the $7,000,000 (in 1993 dollars) total minimum investment required by DCC 18.113.060(A)(3) shall be spent on developed recreational facilities. 5. The facilities required by DCC 18.113.060(A)(2) through (4) must be physically provided or financially assured pursuant to DCC 18.113.110 prior to closure of sales, rental or lease of any residential dwellings or lots. 6-20-07