2008-869-Minutes for Meeting April 23,2008 Recorded 10/1/2008DESCHUTES COUNTY OFFICIAL RECORDS r} ~n~uQ,Q~~
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NANCY BLANKENSHIP, COUNTY CLERK CU
COMMISSIONERS' JOURNAL 10/0112008 08;36;22 AM
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2008-869
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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, APRIL 23, 2008
Present were Commissioners Dennis R. Luke, Tammy Melton and Michael M.
Daly. Also present were Dave Kanner, County Administrator; Erik Kropp, Deputy
County Administrator; Mark Pilliod and Laurie Craghead, Legal Counsel; Tom
Anderson, Catherine Morrow, Todd Cleveland, Dan Haldeman, Sher Buckner,
George Read and Barbara Rich, Community Development Department; Marty
Wynne, Finance; and approximately twenty other citizens, including
representatives of the media.
Chair Luke opened the meeting at 1:30 p.m.
1. Progress Report from South County Financial Assistance Advisory
Committee.
Robert Ray, speaking for the South County Financial Advisory Committee and
reading from a document, reported that the Committee came up with several
points to present to the Board.
Some of these points are: limiting access to funds makes no sense. The ten-year
timeline is too limited. Sales are too uncertain and limiting. The funds need to
be available before Pahlisch exercises its options.
Commissioner Luke said that it could be used to pay debt service on a bond.
All funds from land sales should be used for groundwater protection, first in
South County then elsewhere in the County.
Metered growth should be considered, and giving incentives to stall
development of individually owned lots. Commissioner Daly asked if this
means landowners will be asked to agree not to develop their property. Mr.
Ray replied that they could be asked to move their projected timeline to a later
date, and maybe offer a reduction in fees or other incentives.
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 1 of 10 Pages
Mr. Ray stated that any intelligent recommendation is moot without the
inclusion of Klamath County. Development is more aggressive in Deschutes
County, but there is no fence at the county line. All holes in the boat need to be
repaired.
The Committee suggests that there be a sewer summit, with representatives
from the DEQ, DLCD, Klamath County and Community Development. All
parties should look at the affected areas, analyze where properties can be
connected to existing systems, or eventually become part of La Pine, or can
develop small systems, or whether individual systems are the only option.
In regard to access to information, it seems to take a lot of inquiries to get
answers. The Committee needs more information on demographics. This
should have been provided at the beginning. The Committee needs clarification
of funding available, restrictions and requirements.
He said that sewering language is too vague, and residents needs to be more
involved to address the participation aspect. Residents have not been involved
and should have been from the start.
Mr. Ray said that a copy of the statement would be available next Wednesday
after all the members have signed off. He feels the charge given was vague,
and they don't know exactly what is expected of them. Commissioner Luke
stated that suggestions are welcome. It isn't just the sewer, but other options
that may come forward that make sense. Mr. Ray asked that Tom Anderson or
Barbara Rich attend the meetings. He added that they need clarification on
what areas can be sewered and what kind of help they can get, and the
demographics are critical. About 39% are seniors or on fixed income.
Commissioner Melton said that DLCD is looking at this as individual lot
owners.
Commissioner Luke stated that he hoped the committee would come back and
say that some percentage of the money should be used for loans and some for
other needs, but the committee seems to be more concerned about the amount.
Commissioner Daly noted that he feels the committee has gotten off track; the
use comes later. Commissioner Melton stated that a housing study was done
some years ago, and she wondered if it would include the demographic
information. Ms. Morrow replied that the census includes this. The affordable
housing study covered a very broad spectrum of topics.
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 2 of 10 Pages
Mr. Ray said that some may have a regular system now and may need an ATT
system later, but the sewer may come in at some point. When the system
finally fails, can they hook up then. This could lead to more of an issue and
more cost. There is a problem that exists now, but what if it isn't an issue ten
years from now. Commissioner Melton stated that the agencies have to go with
the best information available. The Commissioners are not scientists. If there
was a firm recommendation on the grandfathered and new systems, that would
take care of a lot of them. The next piece is, if a standard system is working
okay, then what? What about when it fails? What goes in then?
Mr. Ray said that they would look at areas that can be easily sewered first, then
the ATT systems. Commissioner Melton added perhaps it could be linked into
a sewer system. Mr. Ray stated that Arenco has one with that capability now.
The tank is still used, but the affluent goes to the sewer. It can be upgraded
with one additional filter. Commissioner Melton noted that this should be
added to the options.
Mr. Ray said that they don't want to cut out any green options, like composting
toilets and using gray water. Deschutes County can be on the forefront of this.
However, La Pine Special Sewer District does not want the senior center using
a green system.
Commissioner Daly said that the grandfathered language needs updating as to
what should be allowed or can be upgraded, but the committee needs to decide
how much it is worth. The committee's charge is the monetary part. He added
that the new systems cost more; and asked if these people would be entitled to
some funding. Mr. Ray said that if they can afford it, they shouldn't get any
money.
Commissioner Melton asked how the language could be made clear enough that
this would be any system that reduces nitrates to a certain level. Dan Haldeman
said that composting toilets are allowed by the DEQ, but a regular system is
required for gray water.
Mr. Ray said that the group meets again in a week to talk about grandfathered
systems and so on.
Commissioner Luke said there usually is a series of e-mails and postings
regarding meeting and minutes. Mr. Kanner stated that agendas should have
had the time and place on them. Under law, a notice of the day and subject is
sufficient and is not a violation of public meetings law. This was a rookie
mistake, and the Board can just ratify the actions and minutes of prior meetings.
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 3 of 10 Pages
Individuals on committee are not liable unless they were guilty of neglect of
duty.
Commissioner Melton asked if the committee had any questions. Mr. Ray said
they just wanted clarification on a couple of points.
Mr. Kanner stated that there will be a bond issue for 911 and Oregon State
Police building, and there is still money in the fund for the project, so they
could add $3 million to the groundwater issue. Debt service could be covered
for a while. They'll need a decision soon whether to add this.
Mr. Wynne said that they can put something together until almost the bond sale
date. They are trying to close before the end of the fiscal year. The official
statement advertises bonds a couple of years before the Resolution is needed.
Commissioner Melton observed that she feels the timeframe is too tight and
she'd like more information on how the funds would be spetn.
2. Follow-up Discussion regarding Local Rule.
Dave Kanner said he has spoken with each Commissioner and have gotten a lot
of public input. He feels the Commissioners should talk with each other
instead. He added that he and staff tried to determine what the Board needs in
terms of language and policy implications. Staff reviewed all input and tried to
distill what the major themes are. (See attached handout that references
various comments and input from citizens)
1. Do nothing.
2. There is no problem.
3. Staff is dishonest and incompetent. It does not matter at all whether there is
additional permit revenue. CDD provides services based on demand/ it
should not be a profit center. Do only what is needed based on demand.
4. Sewers. They have tried to rewrite language to include sewers as an option.
As a side note, Mr. Kanner said that a sanitary authority or sewer districts are a
possibility. He had a conversation with Doug Wright of DLCD. They could
create a sanitary authority, which requires a vote, covering all of the areas of
south County not currently served by a sewer system. They then would have
one authority rather than multiple districts. Statutory solutions to overcome this
are possible.
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 4 of 10 Pages
They could create a sanitary authority and give the voters a tax rate, and funds
could be added to the pot of money to use on areas that are not suitable for a
sewer system. The current statute seems to indicate that those funds have to be
used on sewer systems only. And at this point the areas are only within urban
growth boundaries or urban unincorporated communities. This would require a
Goal 11 exception process.
Commissioner Daly stated that this idea came from Judy Forsythe, so citizens
should know that they actually do read comments.
Other points brought up were affordability issues and an inspection regimen.
The following ideas are a result of a brainstorming meeting of staff; the hope is
to stimulate discussion on the issues.
1. This option would turn the problem over to DEQ. They will not allow
nothing to happen. Catherine Morrow stated that if the County doesn't do it,
DEQ would institute a geographic rule. Commissioner Daly stated that
Joanie Hammond of DEQ said that is exactly what would happen.
Commissioner Luke added that decisions would be made in Salem and not
much input will be allowed. His dealings over the years with DEQ have not
been positive; much of what they do is based on politics.
When asked about a staff recommendation, he said that local control is
always better than control from elsewhere. Residents will find it much
easier to get access to local government.
Commissioner Melton stated the County is in an economic downturn and
doesn't have staff capacity to handle this project. There is so much more
than this issue. It might be better to let DEQ take the lead.
Commissioner Luke said that she is assuming that the legislature will care.
They will not fund DEQ to do this. Commissioner Melton thinks they will
because the County has funds for the project. Commissioner Daly said that
it would be great to turn this over to someone else, but it is a County
problem. DEQ does not care how much it costs people. Some bad decisions
have been made by DEQ that cost a lot more than they should have just
because they had the power to do it. Commissioner Luke agreed.
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 5 of 10 Pages
Commissioner Melton asked if part of the money can be used for forming a
sewer district. Commissioner Luke said Oregon Water Wonderland had to
do its own with the help of federal grants. Commissioner Melton feels that
they are looking to the County to put this together. Commissioner Luke said
forming a sewer district requires a vote. Laurie Craghead said it is a
separate government entity and they have to form it. Commissioner Melton
thinks the DEQ will help to get them funding. Commissioners Luke and
Daly have both had dealings with the DEQ for many years and feel it is not
going to happen.
There are no grants to do this available for individuals or small groups
anymore. The County may be able to help with some of it but there is not
enough money to do it all. Commissioner Melton stated that she feels this is
too big for the County, and the $35 million could be used for leverage when
working with DEQ. It will be a burden to staff and will be an ongoing
problem. Mr. Kanner said that creation of a sewer district is a county land
use decision and the county will have to deal with it anyway.
Commissioner Luke said that the congressional delegation can be
approached with a plan and assistance requested. DEQ would have to
support these efforts. He is certain that the legislature will not address this
issue.
Ed Criss said that they went over a map with DEQ and asked for their
reasoning. Arenco also talked about how private money can help. If the
DEQ is running the process, the County funds could pay the debt service for
design-build programs.
2. This option would just require it on new buildings. Although it is easier to
implement, it doesn't solve the problem; in fact, that is the smallest part of
the problem. The number of lots is much smaller.
The problem is existing, improperly functioning septic systems.
Commissioner Luke said that it does not make sense to allow any system to
go in that is not nitrate reducing.
Commissioner Melton stated that she has difficulty with this idea.
Commissioner Daly said that he initially thought this would work. Mr.
Anderson stated that anything put in earlier than 2006 would apply, so some
of them are fairly new.
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 6 of 10 Pages
Some are very old; many were installed in the 1970's. Perhaps the
Committee could make a recommendation as to how to handle grandfathered
systems and whether those owners should get some kind of incentive.
Commissioner Melton stated that it would be important to know if capacity
is there to handle additional lots. Mr. Anderson said that property owners
are being provided with information that the standard system may not be the
best way to go; that discussions are taking place about sewering and newer
types of systems.
Dave Kanner noted that a sewer district or authority can only take place if
there is no practicable alternative. Commissioner Luke said that the Board
seems to feel that the grandfathering should go away, and wants feedback
from the Committee on this issue.
3. In regard to inspections, there is no easy way to do a visual inspection.
Perhaps five a year are obviously failing. Commissioner Luke emphasized
that trespass needs to be a part of the scope unless there is an obvious health
hazard. Mr. Kanner said that instead of a ten-year timeframe, perhaps
having property change hands would trigger the upgrade, if it is still
available at that point. The Committee should provide input on this.
There are about 6,400 lots affected by local rule, and sales have been about
500 a year; however, that has slowed considerably this past year.
Commissioner Luke said that this requirement will take away the option of
sewering as they may just wait until the property sells instead.
Commissioner Daly would like to eliminate the time limit entirely; using
time of sale or a building permit would take care of about 500 properties a
year. Those who can't afford it can live out their lives in their homes
without worrying about it.
Mr. Kanner said staff was unanimous that an inspection regimen is
intriguing but won't work. Staff's biggest concern is creating some
mechanism to track sales so they know when the upgrade should take place.
Tom Anderson added that this would have to be required under state
regulations, requiring a legislative change. The Association of Realtors
would lobby against this as it can be seen as another inhibitor to a sale.
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 7 of 10 Pages
From a staff perspective, whether time of sale or extending the time frame,
the science is not precise enough to know when pollution reaches the point
of no return. The longer the time frame, the greater the risk that some
drinking water sources will become contaminated. But there are benefits to
having a finite point to have action happen. Should the rule pass, the
Assessor's system would flag the lots and something would have to happen
for the title company to clear the property. This is something that is already
in place when there has been a Code enforcement action. Commissioner
Melton asked for input on how the funds would be allocated in this situation.
4. Another option is to extend the timeframe to fifteen years. There was a lot
of testimony on this and the pro's on this are strong. But the biggest con is
that at this time some newer systems don't require much, but may in the
future. There is also the possibility to encourage upgrades sooner rather than
later, through incentives.
The biggest concern is the variable treatment standards. Mr. Anderson
stated that the level of nitrate reduction has been analyzed, and since
everyone contributes to the problem, all should be part of the solution.
There are critical areas where water levels are higher, or are close to the
river, or are older, where a change out should occur right away.
Other areas have deeper groundwater and a 35% reduction is all that would
be required. There are other choices besides replacing the entire system.
Barbara Rich added that there are some that have variable treatment
standards and that may be all that is needed in certain locations. The DEQ
requires that the system has to shut down if it is not operating properly. It
cannot discharge if it is not treated.
5. Another point was waiting for the Committee to make recommendations.
Alternatively, the Committee could be put on hold until if or when the rule is
adopted. Mr. Kanner asked if this would apply to all new construction
including grandfathered ones now, with the question being reimbursement.
There was consensus of the Board, with the only question being
compensation at some point. Commissioner Daly said that cluster systems
do not treat nitrates anyway, they just combine individual systems into one.
And Goal 11 still has to be addressed.
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 8 of 10 Pages
6. Another option is to refer it to the voters, even though it would be
Countywide. It was felt that the Commissioners are elected to make
decisions and not necessarily refer it to the voters.
Commissioner Daly said that points #2 and #3 are similar. There are
different types of new development, since some may already have a permit
in place. Others may have nothing in place. The question is whether there
should be any kind of reimbursement.
He asked if demographic information used to decide the income level; the
Census is already eight years old.
Mr. Ray said that properties have lost 25% of their value lately. Even old
information would be helpful as a starting point. Commissioner Melton
stated that a housing study was done as well. Commissioner Daly asked if
funds would be allocated based on age groups. Mr. Kanner stated that
money can be provided in the form of a loan, with a repayment requirement
when the property changes hands.
Mr. Ray said that the cost of an NDR system would be about $300,000, and
the water could be used on lawns, etc. It will even address pharmaceuticals.
Commissioner Daly said there is still a cost to install the piping. Ms.
Morrow stated it is all about Goal 11.
Commissioner Melton stated there could be a round-table discussion to
investigate options. Commissioner Luke sated that the Committee can only
provide what it feels is clear. It is important that staff be able to be prepared
in advance of meeting with the Committee. The only question the Board is
asking is whether some reimbursement is appropriate.
He said it comes down to a neighborhood sitting down and figuring out if
they want a sewer system and whether there is support for it. For instance,
the Road Department meets with interested citizens, giving them
information on road improvements, and then there is a preliminary vote.
Mr. Ray said the map referred to in the DEQ information showing flood
plains, etc. would help to get this issue before the public. Commissioner
Daly asked how that relates to using the funding. Mr. Ray feels this will
help to localize the issue.
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 9 of 10 Pages
After a lengthy conversation, it was decided that the Committee has several
items to discuss and report back to the Commissioners, including the
grandfathering aspect.
3. Other Items.
None were offered.
Being no further discussion, the meeting adjourned at 4: 40 p.m.
DATED this 23rd Day of April 2008 for the Deschutes County Board of
Commissioners.
D nnis R. Luke, hair
ammy a y) qelton, Vice Chair
ATTEST:
Recording Secretary
Minutes of Administrative Work Session Wednesday, April 23, 2008
Page 10 of 10 Pages
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, APRIL 23, 2008
1. Progress Report from South County Financial Assistance Advisory Committee
- David Inbody
2. Follow-up Discussion regarding Local Rule
3. Other Items
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 otherlvise 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.
Please call (541) 388-6571 regarding alternative formats or for further information.
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MAJOR PUBLIC TESTIMONY THEMES
(Oral & Written, Through 04/08
1. Do Nothing. "Majority" of citizens are opposed and BoC should respect their
wishes. Let local citizens decide how to address the problem.
2. There is No Problem. Nitrates are not a health concern. (And even if they are) the
science of the groundwater study is flawed/inaccurate.
3. Staff is Dishonest/Incompetent County is only doing this for the money.
4. Sewers. Better long-term solution. Pharmaceuticals + other pathogens.
5. Affordability. Too many in S. County cannot afford to upgrade. This will
bankrupt people and put them out of their homes.
6 Inspection Regimen. Address the problem via an inspection pgm. That focuses on
older systems and problem areas. Extend to 15 years.
Policy Choice
Do Nothing
Has the effect
retaining the on-site inspection nroQram.l
Pros
Cons
Klamath Co. may be included in a
Delays timely action. Possible that no
geographic rule
action is taken if legislature does not
provide add't'1 DEQ resources
Groundwater protection is ultimately
Lost or reduced coordination with other
DEQ's responsibility
statewide land-use planning goals.
Shifts cost burden to state
Possible abdication of BoC responsibility
to make a local decision at the local level
Allows DEQ to do their own public
Lose coordination between land-use, env.
involvement process
health & building as well as other public
values identified in RPS
Responds to some public feedback that
DEQ has repeatedly expressed support for
DEQ would do a better job of groundwater
the County's right to develop a local
protection than county
solution.
Shifts liabilities, enforcement
DEQ focus on red lots possibly at odds
responsibilities and appeals to the state
w/work plan
Frees up county staff to work on other
ro ects + programs
Possibly use revenue from new
neighborhood for other purposes identified
by RPS
Coordination between on-site program and
water pollution control facilities program
#l:
of turning the gw protection issue back over to DEQ. (Staff recommends
Policy Choice #2:
Apply Only to New Construction Postpone action on existing systems. (Buyout of
G'fathered Approvals?)*
Pros
Cons
Rules don't change for current residents
Doesn't solve the problem
Reduces the financial assistance need.
New construction is the smallest part of the
Frees up new neighborhood for other
pollution load. (Existing development is
purposes. Allows more time to create
the largest)
financial assistance p s if needed
Implementation is easy.
OAR 340 already requires nitrate reduction
for much new construction.
Reflects a portion of public will
Policy Choice #3:
Inspection Regimen Rewrite ordinance to require inspection of all existing systems.
Require immediate upgrade of any system not functioning properly. Begin inspections in
areas w/greatest need of nitrate reduction. Inspect 20% of all systems every year.
(Require upgrade at time of sale?)*
Pros
Cons
Responsive to public testimony
Properly functioning systems are the
largest contributors to the pollution load
Incremental yearly education
Not possible to determine if a system is
functioning properly with a visual surface
inspection. This would require an intrusive,
non-voluntary inspection.
Tracks problems over time and catches
Potential for confrontation between
problem early
inspectors and property owners
Clear path to getting all systems changed
DEQ regulation already requires
out
replacement of failing systems.
for inspections. Where would it come
from?
Policy Choice #4:
Extend Time Period to 15 Years
Pros
Cons
Responsive to public testimony
Longer time frame allows pollution to get
worse, in which case it may not solve the
problem
Allows more time for alternative (less
Possibly sends a message that the problem
expensive?) technologies to become
is not urgent
available
Allows more time to develop financial
May eliminate variable treatment standards
assistance resources and incentives
Allows neighborhoods more time to pursue
sewer
*Front-loaded financial incentives could make longer time frame more attractive
Policy Choice #5:
Postpone Action Until After FAC Presents Recommendations Items marked with * in
previous policy choices are items the board asked the F.A.C. to examine.
Pros
Cons
Other policy choices may be influenced by
FAC recommendations can be
FAC recommendations
implemented by rule/resolution or
retroactively after local rule is adopted.
Opp'ty for add't'1 public input
Postponement cannot be indefinite (can't
send a message that FAC can go on
working forever.)
May want to codify some FAC
W/o firm deadline, continues to tap staff &
recommendations. (Could be done via
resources
separate ordinance)
*Alternatively, FAC can be put on hold until after a decision on local rule
Policy Choice #6:
Refer the Ordinance to the Voters.
Pros
Cons
Strong likelihood it will be referred
BoC appears to abdicate its ethical and
anyway
legal responsibility to make the decision on
this issue.
Opp'ty to educate entire county on this
Establishes very bad precedent for similar
issue
controversial issues in the future
A definitive answer: If approved it's final.
Voter apathy: Most voters outside of S.
If repealed DEQ probably steps in and
County don't know or, in some cases, care
declares a GMA
about the issue.