2012-1588-Minutes for Meeting April 25,2012 Recorded 5/7/2012DESCHUTES COUNTY OFFICIAL
NANCY BLANKENSHIP, COUNTY
COMMISSIONERS' JOURNAL
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2012-1388
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Deschutes County Clerk
Certificate Page
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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
DESCHUTES COUNTY BOARD OF COMMISSIONERS
WEDNESDAY, APRIL 25, 2012
Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend
Present were Commissioners Anthony DeBone, Alan Unger and Tammy Baney.
Also present were Erik Kropp, Interim County Administrator; Chris Doty and
George Kolb, Road Department; Mark Pilliod and Laurie Craghead, County
Counsel, media representative Hillary Borrud of The Bulletin; and six other
citizens.
Chair DeBone opened the meeting at 10:00 a.m.
1. PLEDGE OF ALLEGIANCE
2. CITIZEN INPUT
None was offered.
3. Before the Board was Consideration of Chair Signature of Document No.
2012-220, a Notice of Intent to Award Contract for the Overlay of
Brookswood Boulevard, Bear Creek Road and Ten Barr Ranch Road.
George Kolb gave an overview of the areas and the bid process. There were
three bidders for these projects. The County Engineer's estimate was very close
to the bid amounts.
Commissioner Baney asked if there would be any work being done while
bicycle events were occurring. Mr. Kolb stated that this work should not
interfere with cycling events. He added that this is part of the effort to
competitively bid out work that the County might otherwise do itself, in an
effort to get the best possible overall price.
Minutes of Board of Commissioners' Business Meeting Wednesday, April 25, 2012
Page 1 of 8 Pages
UNGER: Move signature of the Notice of Intent to Award Contract Letter.
BANEY: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
DEBONE: Chair votes yes.
4. Before the Board was Consideration of Signature of Resolution No. 2012-
020, Causing Portions of Skyliners Road to be Surveyed, the Filing of a
Report by the County Road Official, and Notice of the Legislative Process.
Mr. Kolb explained the project and process. In 1935 the road was established
as Tumalo Lakes Road and later under other names. Statute allows you to
legalize roads when it is difficult to determine the exact locations based on
previous documents. The road would be legalized based on the existing center
line, and will help to avoid having to obtain rights of way. The road location
will not change and no public property should need to be acquired.
This legalizes the road on private property; the U.S. Forest Service will handle
the portions on their road. The U.S. Forest Service has to go through an
extensive process due to the establishment of a new water line for the City of
Bend.
UNGER: Move signature of Resolution No. 2012-020.
BANEY: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
DEBONE: Chair votes yes.
5. Before the Board was Consideration of Signature of Order No. 2012-034,
Initiating Legalization Proceedings for Portions of Skyliners Road.
UNGER: Move signature of Order No. 2012-034.
BANEY: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
DEBONE: Chair votes yes.
Minutes of Board of Commissioners' Business Meeting Wednesday, April 25, 2012
Page 2 of 8 Pages
6. Before the Board was Consideration of Signature of Order No. 2011-022,
Authorizing Interim County Administrator to Execute and Deliver a
Notice of Default.
Laurie Craghead indicated there were a few typographical errors on the
document which have been corrected.
Mark Pilliod said that this has been subject of several executive session
meetings. The Order is consistent with direction received from the Board in the
past. In the Order, the Interim County Administrator is instructed to send a
notice of default to the parties involved. The deliberations this morning is part
of an open meeting and the Board is under no obligation to take input, but can if
so desired.
Chair DeBone said there has been a request to speak. Commissioner Baney
said that it was not posted as a hearing but she feels it might be beneficial to
hear comments. Commissioner Unger agreed that this is a unique situation and
it might help to move along some of these issues. Chair DeBone indicated that
testimony could be given.
Joe Willis, an attorney with Schawbe Williamson & Wyatt, said he is relatively
new to this issue because the current attorneys cannot attend today. He
objected to the Order and asked for more time to investigate this situation
further. His client is Casili Trust, who has an interest in the property. Mr.
Willis is concerned that this is a trust account and finds nothing in the
documents that allows this security to be a flow-through. He believes the
County would have to obligate its funds and draw upon the trust to be
reimbursed. Ultimately, there could be a default on the first hotel, but there is a
huge amount of interest involved. He reviewed State law, which he feels
prohibits counties from raising funds in this manner.
He feels there will be litigation over this aspect if it moves forward. There is a
security agreement in place. He realizes there is an obligation to enforce land
use laws; therefore, the County could just refuse to issue building permits. He
would like to see the new parties involved in a solution. He also wants to know
how many unsold lots are there and what the ratio is, since it is possible they are
already in compliance.
Minutes of Board of Commissioners' Business Meeting Wednesday, April 25, 2012
Page 3 of 8 Pages
They are now in a position to come forward to amend the ratio, which would
greatly reduce the need for overnight lodging units and the associated costs.
This is a dramatic change. Also, everyone knows what the economy has been,
and the County won't want to build a hotel which may not be economically
viable. He urged the County to hold off on this and let the parties work it out.
There are competing economic interests, and it will take some time to come up
with a win-win situation. If it continues the way it is, this situation will likely
end up in Court, where there might be a decision that no one likes.
Commissioner Unger stated the County waited until the last minute that it could
to move to protect the County's interests. Mark Pilliod added that Mr. Willis is
well-prepared and articulate, but it is not as if the County has jumped into this
without a lot of thought and discussion. The County has, for a long time,
worked with Mr. Willis' colleagues and the developers, who seem to be
hopelessly in default.
The hotel was supposed to be completed by May 2011. The partners were
approached and worked out a timeframe to come up with a solution. It was not
enough time to effect land use modifications, which may take a considerable
amount of time. The conditions offered were unacceptable to Mr. Willis'
clients. They are now working within the warranty timeframe. The County is
concerned that delaying further in effect could waive any rights to correct this
issue. The County may have the remedy of not issuing building permits, but it
does not help individual lot owners if you decline their permits because of the
developers' failure to build the required overnight accommodations.
The County cannot be placed in an adverse position regarding the deposit, and
there are disagreements as to whether it is a sufficient amount to do what is
required.
Commissioner Unger feels the County has to protect itself and send out the
notice of default. Professional people involved may then choose to get to the
table and work something out.
Commissioner Baney suggested that any additional comments be solicited in
case others wish to speak.
Attorney Liz Dickson with Hurley Re, representing Pronghorn Intangibles, who
has taken over the resort, stated that Pronghorn Intangibles is not involved in
these County documents directly. They have purchased most of the remaining
property and are responsible for coming up with something viable for the resort.
Minutes of Board of Commissioners' Business Meeting Wednesday, April 25, 2012
Page 4 of 8 Pages
She is under the impression that Mr. Willis represents only Mr. Casili and not
the other ownership interests. Mr. Casili is not the defaulting party as there are
a number of people and entities involved. The default notice would probably
go to Hicks, Casili and others.
She said that as she read the improvement agreement, it was clear that the
County can use the funds to build the improvements. She does not think this
language is ambiguous. Regarding the question regarding the amount of money
being held, there is a significant concern that there is not enough there for even
one hotel. If the County wants to improve the property at Pronghorn quality,
this is not enough.
As to whether to wait longer, Pronghorn Intangibles does not have a specific
timeframe for its future plans for the resort. However, it is likely the next phase
of development may be her clients building there.
Commissioner Unger asked if this would be Hotel A or B. Ms. Dickson said it
should not have to be one or the other. Her clients are negotiating with a group
that builds high-end hotels and resorts around the world, and want to build
something appropriate for this resort. Commissioner Unger encouraged more
conversation to get things moving.
Mr. Pilliod said that the notice of default indicates a thirty-day timeframe, but
the County remains open to discussions beyond that timeframe if the parties are
making progress. If the parties, inclusive of the new developer, achieve
something feasible, the Board has the authority to rescind this action. The thirty
days is not a drop-dead point for purposes of future discussions.
Commissioner Baney was thankful to hear comments, and feels there may be
opportunities for this to be successful. The County needs to be protected and
she thinks that this offers an opportunity for further discussions, and establishes
the fact that a solution is needed. There may be a multitude of parties and
interests, but the County needs to see something moves forward. Commissioner
Unger added that the County did not want to have to pursue this, but the parties
involved were not making progress.
Chair DeBone said that the vision for the resort is a good one, and he hopes is
successful.
BANEY: Move approval of the Order.
UNGER: Second.
Minutes of Board of Commissioners' Business Meeting Wednesday, April 25, 2012
Page 5 of 8 Pages
VOTE: BANEY: Yes.
UNGER: Yes.
DEBONE: Chair votes yes.
Before the Board was Consideration of Approval of the Consent Agenda.
BANEY: Move approval of the Consent Agenda.
UNGER: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
DEBONE: Chair votes yes.
Consent Agenda Items
7. Signature of Resolution No. 2012-039, Transferring Appropriations in the
General Fund/Assessor's Office
8. Signature of Resolution No. 2012-038, Transferring Appropriations in the
Sheriff s Office Fund
9. Signature of Order No. 2012-019, Declaring Certain Deschutes County
Personal Property Surplus and Authorizing Its Sale
10. Signature of Resolution No. 2012-037, regarding an Assessment & Taxation
Grant through the Oregon Department of Revenue
11. Signature of Document No. 2012-103, Termination of an Easement from the
U.S. Forest Service (Deschutes Market Road)
12. Approval Nunc Pro Tunc of a Letter of Support for PacificSource Community
Health Plans Coordinated Care for Central Oregon
13. Approval of Discretionary Grant Applications:
• Bethlehem Inn - Spotlight on Homelessness. The Commissioners granted
$1,000 each.
Central Oregon Youth Investment Foundation. Commissioner Baney granted
$350.
• Big Brothers Big Sisters of Central Oregon - Bowl for Kids' Sake. The
Commissioners granted $500 each.
Oregon High School Equestrian Team - State Meet. The Commissioners
granted $500 each.
American Red Cross - 2012 Sisters Preparedness Fair. The Commissioners
granted $500 each.
Minutes of Board of Commissioners' Business Meeting Wednesday, April 25, 2012
Page 6 of 8 Pages
14. Approval of Minutes:
Board Meeting of April 16, 2012
Work Session of April 16, 2012
CONVENED AS THE GOVERNING BODY OF THE 9-1-1 COUNTY
SERVICE DISTRICT
15. Before the Board was Consideration of Approval of Weekly Accounts
Payable Vouchers for the 9-1-1 County Service District in the Amount of
$14,035.82.
BANEY: Move approval, subject to review.
LINGER: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
DEBONE: Chair votes yes.
CONVENED AS THE GOVERNING BODY OF THE EXTENSION AND 4-H
COUNTY SERVICE DISTRICT
16. Before the Board was Consideration of Approval of Weekly Accounts
Payable Vouchers for the Extension/4-11 County Service District in the
Amount of $43,354.74.
BANEY: Move approval, subject to review.
UNGER: Second.
VOTE: BANEY: Yes.
UNGER: Yes.
DEBONE: Chair votes yes.
RECONVENED AS THE DESCHUTES COUNTY BOARD OF
COMMISSIONERS
17. Before the Board was Consideration of Approval of Weekly Accounts
Payable Vouchers for Deschutes County in the Amount of $1,024,753.15.
BANEY: Move approval, subject to review.
UNGER: Second.
Minutes of Board of Commissioners' Business Meeting Wednesday, April 25, 2012
Page 7 of 8 Pages
VOTE: BANEY: Yes.
UNGER: Yes.
DEBONE: Chair votes yes.
18. ADDITIONS TO THE AGENDA
None were offered.
Being no further action or discussion, the meeting adjourned at 10:45 a.m.
DATED this Day of 2012 for the
Deschutes County Board of Commissioners.
ZAAVII,
Anthony DeBone, Chair
Alan Unger, Vice Chair
ATTEST: .
Tammy B ney, Comm' ioner
Recording Secretary
Minutes of Board of Commissioners' Business Meeting Wednesday, April 25, 2012
Page 8 of 8 Pages
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P~rOpposed
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Submitting written documents as part of testimony? ❑ Yes gNo
Deschutes County Board of Commissioners
1300 NW Wall St., Bend, OR 97701-1960
(541) 388-6570 - Fax (541) 385-3202 - www.deschutes.orR
BUSINESS MEETING AGENDA
DESCHUTES COUNTY BOARD OF COMMISSIONERS
10:00 A.M., WEDNESDAY, APRIL 25, 2012
Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend
1. PLEDGE OF ALLEGIANCE
2. CITIZEN INPUT
This is the time provided for individuals wishing to address the Board, at the Board's
discretion, regarding issues that are not already on the agenda. Please complete a sign-up
card (provided), and give the card to the Recording Secretary. Use the microphone and
clearly state your name when the Board calls on you to speak.
PLEASE NOTE: Citizen input regarding matters that are or have been the subject of a public
hearing will NOT be included in the official record of that hearing.
3. CONSIDERATION of Chair Signature of Document No. 2012-220, a Notice
of Intent to Award Contract for the Overlay of Brookswood Boulevard, Bear
Creek Road and Ten Barr Ranch Road - George Kolb, Road Department
Recommended Action: Move Chair Signature of Document No. 2012-220.
4. CONSIDERATION of Signature of Resolution No. 2012-020, Causing
Portions of Skyliners Road to be Surveyed, the Filing of a Report by the County
Road Official, and Notice of the Legislative Process - George Kolb, Road
Department
Recommended Action: Move Signature of Resolution No. 2012-020.
5. CONSIDERATION of Signature of Order No. 2012-034, Initiating
Legalization Proceedings for Portions of Skyliners Road - George Kolb, Road
Department
Recommended Action: Move Signature of Order No. 2012-034.
Board of Commissioners' Business Meeting Agenda Wednesday, April 25, 2012
Page 1 of 6 Pages
CONVENE AS THE GOVERNING BODY OF THE 9-1-1 COUNTY
SERVICE DISTRICT
15. CONSIDERATION of Approval of Weekly Accounts Payable Vouchers for
the 9-1-1 County Service District
CONVENE AS THE GOVERNING BODY OF THE EXTENSION AND 4-H
COUNTY SERVICE DISTRICT
16. CONSIDERATION of Approval of Weekly Accounts Payable Vouchers for
the Extension/4-H County Service District
RECONVENE AS THE DESCHUTES COUNTY BOARD OF
COMMISSIONERS
17. CONSIDERATION of Approval of Weekly Accounts Payable Vouchers for
Deschutes County
18. ADDITIONS TO THE AGENDA
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), litigation; ORS
192.660(2)(d), labor negotiations; ORS 192.660(2) (b), personnel issues; or other executive session items.
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, April 23
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Board of Commissioners' Business Meeting Agenda Wednesday, April 25, 2012
Page 3 of 6 Pages
6. CONSIDERATION of Signature of Order No. 2011-022, Authorizing Interim
County Administrator to Execute and Deliver a Notice of Default - Mark
Pilliod, County Counsel
Recommended Action: Move Signature of Order No. 2012-022.
CONSENT AGENDA
7. Signature of Resolution No. 2012-039, Transferring Appropriations in the
General Fund/Assessor's Office
8. Signature of Resolution No. 2012-038, Transferring Appropriations in the
Sheriff's Office Fund
9. Signature of Order No. 2012-019, Declaring Certain Deschutes County
Personal Property Surplus and Authorizing Its Sale
10. Signature of Resolution No. 2012-037 - Assessment & Taxation Grant through
the Oregon Department of Revenue
11. Signature of Document No. 2012-103, Termination of an Easement from the
U.S. Forest Service (Deschutes Market Road)
12. Approval Nunc Pro Tunc of a Letter of Support for PacificSource Community
Health Plans Coordinated Care for Central Oregon
13. Approval of Discretionary Grant Applications:
Bethlehem Inn - Spotlight on Homelessness. The Commissioners granted
$1,000 each.
Central Oregon Youth Investment Foundation. Commissioner Baney granted
$350.
• Big Brothers Big Sisters of Central Oregon - Bowl for Kids' Sake. The
Commissioners granted $500 each.
Oregon High School Equestrian Team - State Meet. The Commissioners
granted $500 each.
American Red Cross - 2012 Sisters Preparedness Fair. The Commissioners
granted $500 each.
14. Approval of Minutes:
Board Meeting of April 16, 2012
Work Session of April 16, 2012
Board of Commissioners' Business Meeting Agenda Wednesday, April 25, 2012
Page 2 of 6 Pages
Wednesday, April 25
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Monday, April 30
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Wednesday, May 2
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Monday, MM 7
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
3:30 p.m. Public Safety Coordinating Council Meeting
Wednesdav. Mav 9
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Thursday, May 10
7:00 a.m. Regular Meeting with the City of Redmond Council, at Redmond City Council
Chambers
Thursday 17
11:00 a.m. Children & Families' Commission Meeting - La Pine
Monday, May 21 through Friday, May 25
9:00 a.m. (All Day) Budget Meetings
Monday, May 28
Most County offices will be closed to observe Memorial Day
Board of Commissioners' Business Meeting Agenda Wednesday, April 25, 2012
Page 4 of 6 Pages
Tuesday, May 29
11:30 a.m. Annual Meeting with Black Butte Ranch Board, at Black Butte Ranch
Monday, June 4
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
3:30 p.m. Public Safety Coordinating Council Meeting
Wednesday, June 6
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Monday, June 11 - Tuesday, June 12
8:00 a.m. AOC Spring Conference - Bend
Wednesday, June 13
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Thursday, June 14
7:30 a.m. Bend Chamber of Commerce Breakfast - Annual County Forecast
Wednesday, June 18
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Monday, June 25
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Wednesday, June 27
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
Board of Commissioners' Business Meeting Agenda Wednesday, April 25, 2012
Page 5 of 6 Pages
Monday, July 2
10:00 a.m. Board of Commissioners' Meeting
1:30 p.m. Administrative Work Session - could include executive session(s)
3:30 p.m. Public Safety Coordinating Council Meeting
Wednesday, July 4
Most County offices will be closed to observe Independence Day.
Thursday, July 5
8:00 a.m. Regularly Scheduled Meeting with the City of Sisters Council, in Sisters
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), litigation; ORS
192.660(2)(d), labor negotiations; ORS 192.660(2) (b), personnel issues; or other executive session items.
Board of Commissioners' Business Meeting Agenda Wednesday, April 25, 2012
Page 6 of 6 Pages