2010-2951-Minutes for Meeting October 25,2010 Recorded 12/6/2010DESCHUTES COUNTY OFFICIAL
NANCY BLANKENSHIP, COUNTY
COMMISSIONERS' JOURNAL
II 1111111111111111111111 Jill
III
2010-2951
CLERKDS CJ 2010.2951
12/06/2010 08:54:50 AM
Do not remove this page from original document.
Deschutes County Clerk
Certificate Page
r--
Deschutes Count Board
y of Commissioners
44 1300 NW Wall St., Suite 200, Bend, OR 97701-1960
XMgftzko 411,
\ (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.ora
MINUTES OF WORK SESSION
DESCHUTES COUNTY BOARD OF COMMISSIONERS
WEDNESDAY, OCTOBER 25, 2010
Present were Commissioners Dennis R. Luke and Tammy Baney; and Alan Unger
via conference call. Also present were Dave Kanner, County Administrator; Erik
Kropp, Deputy County Administrator; and, for a portion of the meeting, Rob
Poirier of 911; Eric Stroebel and Roger Lee of Economic Development for Central
Oregon; Hillary Borrud of The Bulletin; a reporter with KOHD TV and one other
citizen.
Chair Luke opened the meeting at 1:30 p.m.
1. Tour of New Secure Residential Treatment Facility.
The Commissioners and staff toured the new secure residential treatment center
at 20370 Pole Sholes Road. It will be ready for occupancy after the first of the
year when staffing is in place, but is nearly complete at this time.
2. Review of Supplemental Budget Request for Remodel of Jail Control
Room, Locker Room and Lunch Room.
Dave Kanner gave a brief overview of the changes requested by the Sheriff. It
is hard to argue against these changes, which would utilize funding not used for
the jail remodel. These changes need to be made regardless of the jail
expansion project. Originally, the funds were to come from the Solid Waste
reserve fund, but since revenue is down in Solid Waste, it should come from
Fund 456, the jail expansion fund. A supplemental budget will be needed to do
this.
Another alternative is Funds 703 & 704, capital reserves for equipment for the
law enforcement districts, could be borrowed from and repaid when land is
eventually sold. Another $100,000 could come from Fund 538, the Jameson
Fund.
Minutes of Board of Commissioners' Work Session Monday, October 25, 2010
Page 1 of 4 Pages
The Commissioners supported the idea of the remodeling projects, with a
preference to use the law enforcement funds, which will require a supplemental
budget resolution.
3. Discussion of an Application for a Forgivable Loan Funds via EDCO.
Roger Lee and Eric Stroebel of EDCO came before the Board to discuss a
request from Agere Pharmaceuticals for economic development funding, and
other economic development issues.
Commissioner Luke asked about a previous loan request from Rocky Mountain
Products. Mr. Lee said that the company had pursued other funding, which was
approved with a number of conditions. There is concern that the funding will
not result in the number of jobs desired, and sets precedence on the use of
future funds.
The Commissioners indicated that the original agreement should stand, and
wanted a length of time for the process and other provisions to be added.
BANEY: Move that the original agreement stand, any money owed for taxes
be current, and adequate time be allowed to act on the provisions.
UNGER: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
LUKE: Abstain.
BANEY: Move that the $56,000 loan be allowed after Rock Mountain has
secured other funding.
UNGER: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
LUKE: Abstain.
BANEY: Move a letter be drafted and send denying the requests made in the
October 15 Rock Mountain Products letter.
UNGER: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
LUKE: Abstain.
Minutes of Board of Commissioners' Work Session Monday, October 25, 2010
Page 2 of 4 Pages
The group then discussed a grant request from Agere Pharmaceuticals, which is
a research and testing company. They are moving into larger facilities so they
can expand their manufacturing capabilities. They are seeking Small Business
Administration funding, the Bend Opportunity Fund and State funding as well.
They are taking a conservative approach, and have a good track record. They
hope to add seven employees by the end of 2012.
BANEY: Move authorization of the $14,000 forgivable loan.
UNGER: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
LUKE: Abstain.
The Commissioners indicated that if a Commissioner is approached directly for
funding, those individuals should be referred to EDCO. Anything coming to
the Board is a matter of public record, but if a company goes through EDCO,
the name and financials can remain confidential until such time a request is
addressed by the Board.
Commissioner Unger left the conference call at this time.
4. Update of Commissioners' Meetings and Schedules.
None were offered.
5. Other Items.
The Board went into Executive Session under ORS. 192.660(2)(e), real property
negotiations.
Being no further items discussed, the meeting adjourned at 2:50 p.m.
Minutes of Board of Commissioners' Work Session Monday, October 25, 2010
Page 3 of 4 Pages
DATED this 7~ Day ofk-dW/ xk 2010 for the
Deschutes County Board of Commissioners.
Dennis R. Luke, air
9,14"t Ltx g-
Alan Unger, Vice Chair
ATTEST:
f,v",~L kktl(-,
Recording Secretary
Tammy Baney, Conti
si sioner
Minutes of Board of Commissioners' Work Session
Page 4 of 4 Pages
Monday, October 25, 2010
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., MONDAY, OCTOBER 25, 2010
Location: New 911 Facility, 20355 Poe Sholes Drive, Bend (Upstairs)
1. Tour of New Secure Residential Treatment Facility, 20370 Poe Sholes Drive
2. Review of Supplemental Budget Request for Remodel of Jail Control Room,
Locker Room and Lunch Room
3. Discussion of Application for Forgivable Loan Funds via EDCO - Agere
Pharmaceuticals - Dave Kanner
4. Update of Commissioners' Meetings and Schedules
5. 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 otherwise indicated.
Ifyou 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 (54 t) 388-6571 regarding altemative formats or for further information.
October 15, 2010
Roger Lee,
Executive Director
EDCO
109 NW Greenwood, Suite 102
Bend, Oregon 97701
Dear Roger,
Re: Deschutes County Loan Application
We had the opportunity to meet with Commissioner Tammy Baney yesterday regarding the status
of our approved loan award of $56,000 on September 8, 2010, the basis of our re-presentation of
our new loan request to EDCO, and how best to move forward in this process that conforms to all
political aspects of the Business Development Fund and parties involved.
It remains clear that there is an impasse in going forward over the award as it stands. Rocky
Mountain Products has not officially rejected the loan award. However, it has made it clear not
only to EDCO but also to the Board of County Commissioners (`BOCC") that EDCO's
presentation to the BOCC was not fully in accordance with our wishes, and thus the outcome
predictably became unacceptable as approved. We nevertheless have still not received any formal
loan agreement from EDCO that sets forth the terms. We hope to hear from you in this regard soon.
We still are able to create jobs and would accept use the loan proceeds but under a different set of
terms and conditions. We believe that the following changes to the existing loan terms that were
conveyed to us verbally by Jon Stark, will be acceptable to BOCC as follows:
1. The commitment for 56 jobs will be dropped as a loan condition.
2. The purpose of the loan is now to purchase one (1) used and rebuilt Carruthers' Auto
Shredder at $55,000, including shipping and installation. As you recall, the Deschutes
County Board Resolution Number 2010-038 dated May 18, 2010 and the Memorandum of
Understanding Document number 2010-353 signed July 23, 2010 (the "Resolution")
allows the loan fund (Fund 105) to be used to lease or purchase equipment.
3. The equipment will allow for the creation and hiring at least four (4) jobs within 12 months
of the loan receipt.
4. The equipment will be offered as collateral for the loan until the loan is forgiven, primarily
when the agreed number of jobs are created, filled and sustained.
5. There will be no ciawback provision.
6. The Business Development Fund loan is mutually exclusive from any other capital raising
efforts by Rocky Mountain Products.
7. This new term arrangement will supersede our previous loan requests and the terms agreed
upon by the BOCC on September 8, 2010.
1601 NE Hemlock Ave, Redmond, Oregon 97756 Telephone number 1-541-548-4584 Facsimile number 1-541-548-5676
E We have discussed the above with Commissioner Baney. She is in agreement with our amended
approach and the above basic loan terms. We have her and likely the other Commissioners' support
of this amended approach. We believe that this approach is realistic, fair, and consistent with the
criteria and spirit of the Resolution.
We therefore wish you to favorable consider amending the earlier terms that were agreed upon by
the BOCC. This may require you to re-present this request to them. Please understand that we are
all trying to do what we feel is right in creating good jobs with public funds, and in carrying out the
wishes of the BOCC whose leadership and efforts in this regard must be respected and manifested.
We truly appreciate the supporting role that EDCO plays in this process.
I look forward to hearing form you soon and how best we can move forward.
in yours, .
Todd Goodew
President
cc. Commissioner Tammy Baney
J
2~ Department of Administrative Services
~ A Dave Kanner, County Administrator
0
RrA
1300 NW Wall St, Suite 200, Bend, OR 97701-1960
(541) 388-6570 - Fax (541) 385-3202
www. co. deschutes. on us
October 21, 2010
TO: Board of Commissioners
FROM: Dave Kanner
RE: Application for Economic Development Funds
As part of the current year's budget, the Board created an economic development fund
intended to provide grants and loans to business that either expand and create jobs or
relocated to Deschutes County and bring jobs with them. The fund is administered by
EDCO, although the final approval of any grants or loans remains with the Board of
Commissioners.
EDCO has received an application for $14,000 in economic development funds from a
local company, Agere, to help with relocation/expansion expenses. EDCO recommends
approval of this application. Roger Lee, EDCO executive director, will attend the
October 25`h work session to review the application with you.
Enhancing the Lives of Citizens by Delivering Quality Services in a Cost-Effective Manner
BRIEFING PAPER FOR AGERE PHARMACEUTICALS
Request for Bend Opportunity fund
September 30, 2010
Number of Employees: 4
Company Request: $14,000
EDCO Recommendation: $14,000
Proposed Job Creation by end of 2012: 7 new employees
Average Pay for New Employees (all positions, excluding commissions): $61,543
Capital Investment: $1,077,500
Industry: Bioscience
Website: wvww.agerepharma.com
Company Background:
Agere is a Contract Research Organization (CRO) providing services to the
pharmaceutical industry. It is the recognized scientific leader providing solutions to
pharmaceutical companies developing poorly water soluble drugs. Agere's current
capabilities include preclinical manufacture and testing capability. Marshall Crew,
President, is a former Bend Research scientist as are several of Agere's employees.
Agere is a member of the newly formed Central Oregon Bioscience Consortium, actively
participating on the board of directors and in the consortium's first year of training.
The company is currently in the process of moving from a 3,000 sq ft facility to a 10,000
sq ft facility located in the Bend Enterprise Zone. The new building will provide much
needed additional office space to support up to 25 employees, manufacturing and testing
space for expanded service products. The most important new capability afforded by this
facility will be the ability to manufacture clinical trial materials for current and future
customers. This new market is critical to Agere's future financial growth. Agere will be
hiring seven employees (chemist, engineer, business development, quality director,
operator and two technicians) with an average wage of $61,543 - far above the county
average of $35,090. Agere plans to invest more than $1 million in equipment and
building improvements. The company is working with the state on financing options, has
applied for the enterprise zone and will be applying to the Bend Opportunity Fund for a
similar amount as this application.
Funding from the Deschutes County Forgivable Loan will be used to offset the costs of
moving and improvements to the current building that are necessary to conduct business.
EDCO Recommendation
EDCO is recommending to City of Bend an award of $2,000 per job for this request for a
total forgivable loan of $14,000.
J~
W~ MN1 Department of Administrative Services
p r ~ Dave Kanner, County Administrator
1300 NW Wall St, Suite 200, Bend, OR 97701-1960
(541) 388-6570 - Fax (541) 385-3202
www.co.deschutes.or.us
October 21, 2010
TO: Board of Commissioners
FROM: Dave Kanner
RE: Supplemental budget proposal for jail remodel
Included in the plans for the jail expansion were relatively small remodeling projects in
the control room, lunch room, locker room and evidence room. Voters did not approve
funding for the jail expansion last May, but these smaller remodeling projects need to
proceed anyway, as they are necessary for the smooth functioning of the jail and have to
be done irrespective of expansion. The architectural work for these projects has already
been completed.
These projects can be paid for out of the jail expansion fund that was created by the
Board in 2007. However, due to failure of the bond measure, the FY '11 budget did not
include any expenditure authority in that fund. Therefore the Board will need to
reactivate that fund or create a new, similar fund to take care of these projects via a
supplemental budget process.
I did not want the Board to be surprised by a supplemental budget request and I will
review the plans for that request with you at the October 25`h work session.
Enhancing the Lives of Citizens by Delivering Quality Services in a Cost-Effective Manner
NEW 12X12 TILE
FLOORING
36'-II"
SALAD (2) REF.
STAFF BAR
LOUNGE
STEAM (2) MW.
TABLE
(2) DW
DRY
STORAGE
n
MOBILE
RACKS
i
i
i
i
C
l
I
rd
_L
C
L_
SCHEMATIC
LOCKER ROOM/STAFF LOUNGE FLOOR PLAN
vvrm-r-; 1/o =f-u
0
a
a
8
P
n
P
s
8
W
~c
CI, l
/IV
UP 1-T- ( i -PARTIAL HEIGHT.WALL
CID
tt d
I
{ I
~
t'
- -
.y
n
SCHEMATIC
2 HOUSING
SCALE Ve• ap_Q
s_
W
~Y M C NEW WALLS WITH WINDOWS TO
1 r MATCH EXISTING. ALIGN CENTER
1„ - a 41 I ----OF WALLS WITH CENTER OF
a - I° I II EXISTING WINDOW MULLIONS.
r--r •*I..rl _ j1 REMOVE EXISTING RAISED
FLOORING, INSTALL NEW
`~---i--i i I FINISH FLOORING
I I
IP USfiB~1M i i i T OPEN WALL AND INSTALL NEW
11 J-- GIRATI, SECURITY DOOR ROUGH-IN
f i i --L FOR FUTURE POWER AND
!~~__+__I I I I SECURITY CONNECTION.
III I I 1 1 1 I 1 C
I~
I :J
FLOOR PLAN
