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2015-557-Minutes for Meeting December 09,2015 Recorded 12/31/2015 DESCHUTES COUNTY OFFICIAL RECORDS rf 2015 551 01-ES BLANKENSHIP, COUNTY CLERK �rY U� e©� COMMISSIONERS' JOURNAL 12/31/2015 08:12:14 AM 11111111111111111111 III 201 L Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutcs.org MINUTES OF BUSINESS MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, DECEMBER 9, 2015 Commissioners'llearing Room-Administration Building- 1300 NW Wall St., Bend Present were Commissioners Anthony DeBone and Alan Unger; Commissioner Tammy Baney was out of the office. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; Dave Doyle, County Counsel; Peter Russell, Paul Blikstad and Matt Martin, Community Development; Ken Hales, Community Corrections; Judith Ure, Administration; and four other citizens. 1. CALL TO ORDER Chair DeBone opened the meeting at 10:00 a.m. 2. PLEDGE OF ALLEGIANCE 3. CITIZEN INPUT None was offered. Minutes of Board of Commissioners' Business Meeting Wednesday, December 9, 2015 Page 1 of 7 4. Before the Board was Discussion of Geo-Spatial Solutions, Inc. Business Loan Forgiveness and Repayment Plan. Judith Ure gave an overview of the loan and said that GeoSpatial faced some challenges, and did not fulfill the requirement for new employees. They also transitioned to another accounting system. They were to create ten jobs and received $20,000, but created five jobs instead. A repayment agreement has already been done and payments have begun. Geo-Spatial was sold to another company but some of the management remained. The company is now part of FireWhat, Inc. Robyn Sharp of EDCO, and Rusty Merritt, CEO of FireWhat, came before the Board. Ms. Sharp explained she was not a part of the original due diligence process, but has spent considerable time figuring out the employment aspect. It was fairly clear that there was going to be a pivot point. Five jobs were created and maintained, and when FireWhat came into the picture, there was talk about continuing the process. They have decided they should get the first five positions forgiven and will repay the County for the other five. Mr. Merritt stated that it was an aggressive business plan at the time. They build and maintain online mapping systems having to do with water and more. They sought outside funding and were engaged with clients, but with the water situation in California, it became a problem. There is some competition locally and they lost a few customers to companies that had more funding in place. The new company is based in Dunsmuir, California, and works with the Forest Service and FEMA on a variety of projects. Most business development will occur out of the Bend office. He sees additional job creation occurring here next year. Commissioner Unger is glad the County was supportive, although there were some setbacks. He is thankful they found their way through this. Chair DeBone noted that local competition of all kinds seems to be steadily increasing. Ms. Sharp said that some people left at the 11-month mark, but the company is only counting those who were with the company a full year. Minutes of Board of Commissioners' Business Meeting Wednesday, December 9, 2015 Page 2 of 7 Mr. Merritt added that when they seek additional investment, it is helpful to demonstrate the County's support and that due diligence was done. It does make a difference and helps with credibility. UNGER: Move forgiveness of half the loan, and arrange for repayment of the other half as agreed. DEBONE: Second. VOTE: UNGER: Yes. DEBONE: Chair votes yes. 5. Before the Board was a Public Hearing and Consideration of First Reading by Title Only of Ordinances Nos. 2015-013 through 2015-018, Housekeeping Text Amendments. Chair DeBone opened the public hearing and the opening statement was read. The Commissioners indicated they have no conflicts of interest. There were no challenges from the audience. Matt Martin provided an overview of the Ordinances, which had been discussed previously in a work session. The Planning Commission hearing generated no public comments. Commissioner Unger said this will clarify some of the language for the public. Chair DeBone asked for public testimony. None was offered, so the hearing was closed. UNGER: Move first reading by title only of Ordinances No. 2015-013 through 2015-018. DEBONE: Second. VOTE: UNGER: Yes. DEBONE: Chair votes yes. Chair DeBone conducted the first readings by title only on Ordinance No. 2015- 013, 2015-014, 2015-015, 2015-016, 2015-017 and 2015-018. Second readings will occur no sooner than in two weeks. Minutes of Board of Commissioners' Business Meeting Wednesday, December 9, 2015 Page 3 of 7 6. Before the Board was a Public Hearing (continued from November 23, primarily to set a hearing date at a south County venue) Amending the Comprehensive Plan to Add an Exception to Statewide Planning Goal 11, to Allow for Sewers in Unincorporated Lands in Southern Deschutes County. Peter Russell presented dates and venues available for continuing the hearing in south County. There has been no further testimony received since the last hearing. The written record is still open. Chair DeBone hopes the process can be completed where it began, in south County. is any testimony to given today. None was Chair DeBone asked if there s a be Y Y Y g offered. UNGER: Move continuation of the hearing to January 6, 2016, in the La Pine High School Auditorium, beginning at 6:00 p.m. DEBONE: Second. VOTE: UNGER: Yes. DEBONE: Chair votes yes. Before the Board was Consideration of Approval of the Consent Agenda. Item #7 was removed from the Consent Agenda for discussion. The minutes of the October 28 Goal 11 hearing were also removed to allow more time for Board review. 7. Before the Board was Consideration of Chair Signature of Document No. 2015-736, an Intergovernmental Agreement between the Oregon Department of Corrections and Community Justice for a Pilot Program relating to Offenders with Minor Children. Ken Hales and Tanner Wark explained that this is a brand new program with the State, as passed in the prior legislative session, with five counties being approved. The focus is for downward departure services for persons who have children in the social service system or are at risk for that. Funds will enable dedicating a half-time officer to work on this project. Minutes of Board of Commissioners' Business Meeting Wednesday, December 9, 2015 Page 4 of 7 Commissioner Unger noted that this looks like a great program and should offer some stability to families. Mr. Wark said that this will be mixed with another caseload, and will serve fifteen people. The Parole Officers working on this will have a unique field requirement, involving twice monthly meetings in the home to make sure social services are being handled appropriately. UNGER: Move Board approval. DEBONE: Second. VOTE: UNGER: Yes. DEBONE: Chair votes yes. Consent Agenda Items 8. Board Signature of a Letter Reappointing Frank Mengel to the Newberry Estates Special Road. District Board, through December 31, 2018 9. Board Signature of a Letter Reappointing NaDynne Lewis to the Board of Deschutes River Recreation Homesites Special Road District #8, through December 31, 2018 10. Board Signature of a Letter Reappointing Colleen Horton to the Board of Sun Mountain Ranches Special Road District, through December 31, 2018 11. Board Signature of a Letter Appointing Bill Warden to the Board of Pinewood Country Estates Special Road District, through December 31, 2018 12. Board Signature of Minutes: • Work Sessions of November 23 and 30, 2015 • Business Meetings of November 23 and 30, and December 2, 2015 - Public Hearing on Goal 11 Exception Process, October 28, 2015 CONVENE AS THE GOVERNING BODY OF THE 9-1-1 COUNTY SERVICE DISTRICT 13. Before the Board was Consideration of Approval of Weekly Accounts Payable Vouchers for the 9-1-1 County Service District in the Amount of $7,877.90. UNGER: Move approval, subject to review. DEBONE: Second. Minutes of Board of Commissioners' Business Meeting Wednesday, December 9, 2015 Page 5 of 7 VOTE: UNGER: Yes. DEBONE: Chair votes yes. CONVENED AS THE GOVERNING BODY OF THE EXTENSION/4-H COUNTY SERVICE DISTRICT 14. Before the Board was Consideration of Approval of Weekly Accounts Payable Vouchers for the Extension/4-H County Service District in the Amount of$577.00. UNGER: Move approval, subject to review. DEBONE: Second. VOTE: UNGER: Yes. DEBONE: Chair votes yes. RECONVENED AS THE DESCHUTES COUNTY BOARD OF COMMISSIONERS 15. Before the Board was Consideration of Approval of Weekly Accounts Payable Vouchers for Deschutes County in the Amount of$936,638.80. Tom Anderson said that part of this is for the new tracking system for Health Services, so that they can be compliant with the State system and others. UNGER: Move approval, subject to review. DEBONE: Second. VOTE: UNGER: Yes. DEBONE: Chair votes yes. 16. OTHER ITEMS Before the Board was Consideration of Board Signature of Document No. 2015-745, a Decision on a Conditional Use Permit Appeal (Clough). Paul Blikstad explained that the applicant's attorney pointed out a critical error. The decision was not clear as to approval by the Board. David Doyle said that a sentence had included denial language that had to be removed. Minutes of Board of Commissioners' Business Meeting Wednesday, December 9, 2015 Page 6 of 7 UNGER: Move approval. DEBONE: Second. VOTE: UNGER: Yes. DEBONE: Chair votes yes. 17. ADJOURN Being no further discussion, the meeting was adjourned at 10:35 a.m. DATED this 2° Day of a 2015 for the Deschutes County Board of Commissioners. Anthony DeBone, Chair Alan Unger, Vice Chair ATTEST: — (perint Tammy :aney, C missioner Recording Secretary Minutes of Board of Commissioners' Business Meeting Wednesday, December 9, 2015 Page 7 of 7 '— 0 '0, Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97703-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org r a, BUSINESS MEETING AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 10:00 A.M., WEDNESDAY, DECEMBER 9, 2015 Commissioners'Hearing Room -Administration Building - 1300 NW Wall St., Bend Pursuant to ORS 192.640, this agenda includes a list of the principal subjects anticipated to be considered or discussed at the meeting. This notice does not limit the ability of the Board to address additional subjects. Meetings are subject to cancellation without notice. This meeting is open to the public and interested citizens are invited to attend. Business Meetings are usually recorded on video and audio, and can be viewed by the public live or at a later date; and written minutes are taken for the record. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. 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 Chair calls on you to speak. PLEASE NOTE: Citizen input regarding matters that are or have been the subject of a public hearing not being conducted as a part of this meeting will NOT be included in the official record of that hearing. If you offer or display to the Board any written documents, photographs or other printed matter as part of your testimony during a public hearing,please be advised that staff is required to retain those documents as part of the permanent record of that hearing. Board of Commissioners' Business Meeting Agenda Wednesday, December 9, 2015 Page 1 of 8 4. DISCUSSION of GeoSpatial Solutions Business Loan Forgiveness and Repayment Plan —Judith Ure, Administration 5. A PUBLIC HEARING and Consideration of First Reading by Title Only of Ordinances Nos. 2015-013 through 2015-018, Housekeeping Text Amendments —Matt Martin, Community Development Suggested Actions: Open hearing, take testimony, close hearing, move first reading by title only of the Ordinances. (Second readings and adoption would occur no sooner than in two weeks.) 6. A PUBLIC HEARING (continued from November 23,primarily to set a hearing date at a south County venue) Amending the Comprehensive Plan to Add an Exception to Statewide Planning Goal 11, to Allow for Sewers in Unincorporated Lands in Southern Deschutes County—Peter Russell, Community Development Suggested Actions: Open hearing, take testimony, and continue hearing to a date and location certain. CONSENT AGENDA Information on items listed on the Consent Agenda has been made available in advance to the Commissioners and the public,for review. These items are considered to be routine, and can be approved by one motion of the Board. If separate discussion is desired on a particular item, that item may be removed from the Consent Agenda by any Commissioner and addressed as a regular agenda item. 7. Chair Signature of Document No. 2015-736, an Intergovernmental Agreement between the Oregon Department of Corrections and Community Justice for a Pilot Program relating to Offenders with Minor Children 8. Board Signature of a Letter Reappointing Frank Mengel to the Newberry Estates Special Road District Board, through December 31, 2018 9. Board Signature of a Letter Reappointing NaDynne Lewis to the Board of Deschutes River Recreation Homesites Special Road District #8, through December 31, 2018 10. Board Signature of a Letter Reappointing Colleen Horton to the Board of Sun Mountain Ranches Special Road District, through December 31, 2018 Board of Commissioners' Business Meeting Agenda Wednesday, December 9, 2015 Page 2 of 8 11. Board Signature of a Letter Appointing Bill Worden to the Board of Pinewood Country Estates Special Road District, through December 31, 2018 12. Board Signature of Minutes: • Work Sessions of November 23 and 30, 2015 • Business Meetings of November 23 and 30, and. December 2, 2015 • Public Hearing on Goal 11 Exception Process, October 28, 2015 CONVENE AS THE GOVERNING BODY OF THE 9-1-1 COUNTY SERVICE DISTRICT 13. CONSIDERATION of Approval of Weekly Accounts Payable Vouchers for the 9-1-1 County Service District CONVENE AS THE GOVERNING BODY OF THE EXTENSION/4-H COUNTY SERVICE DISTRICT 14. CONSIDERATION of Approval of Weekly Accounts Payable Vouchers for the Extension/4-H County Service District RECONVENE AS THE DESCHUTES COUNTY BOARD OF COMMISSIONERS 15. CONSIDERATION of Approval of Weekly Accounts Payable Vouchers for Deschutes County 16. OTHER ITEMS These can be any items not included on the agenda that the Commissioners wish to discuss as part of the meeting,pursuant to ORS 192.640. At any time during the meeting, an executive session could be called to address issues relating to ORS 192.660(2)(e), real property negotiations; ORS 192.660(2)0), litigation; ORS 192.660(2)(d), labor negotiations; ORS 192.660(2)(b), personnel issues; or other executive session categories. Executive sessions are closed to the public; however, with few exceptions and under specific guidelines, are open to the media. Board of Commissioners' Business Meeting Agenda Wednesday, December 9, 2015 Page 3 of 8 17. ADJOURN To watch this meeting on line, go to: http://www.deschutes.org/bcc/page/board-meeting-videos Please note that the video will not show up until recording begins. You can also view past meetings on video by selecting the date shown on the website calendar. ® ,? Deschutes County encourages persons with disabilities to participate in all programs and o® activities. To request this information in an alternate format please call (541)617-4747, or email ken.harms©deschutes.org. 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, December 7 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Wednesday, December 9 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Tuesday, December 15 10:00 a.m. 911 User Board Meeting, at 911 1:30 p.m. Budget Committee Meeting Wednesday, December 16 7:30 a.m. Joint Meeting with Sunriver Service District Board, at the Great Hall, Sunriver Friday, December 18 8:00 a.m. Joint Meeting with Sunriver Owners Association, at the SHARC, Pringle Room Board of Commissioners' Business Meeting Agenda Wednesday, December 9, 2015 Page 4 of 8 Monday, December 21 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Friday, December 25 Most County offices will be closed to observe Christmas Day. Monday, December 28 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Wednesday, December 30 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Friday, January 1 Most County offices will be closed to observe New Years'Day. Monday, January 4 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Tuesday, January 5 3:30 p.m. Regular Meeting of Public Safety Coordinating Council Wednesday, January 6 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) 6:00 p.m. Continued Public Hearing on Goal 11 Options—La Pine High School Board of Commissioners' Business Meeting Agenda Wednesday, December 9, 2015 Page 5 of 8 Thursday, January 7 8:00 a.m. Regular Joint Meeting with the Sisters City Council, Sisters City Hall Wednesday, January 13 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Friday, January 15 7:30 a.m. Joint Meeting with La Pine and Sunriver Chambers of Commerce, at 1,000 Trails Monday, January 18 Most County offices will be closed to observe Martin Luther King, Jr. Day. Tuesday, January 19 10:00 a.m. 911 User Board Meeting, at 911 Wednesday, January 20 10:00 a.m. Board of Commissioners' Business Meeting g 1:30 p.m. Administrative Work Session—could include executive session(s) Monday, January 25 10:00 a.m. Board of Commissioners' Business Meeting 1:30 s.m. Administrative Work Session—could include executive session(s) ( ) Wednesday, January 27 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Monday, February 1 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Board of Commissioners' Business Meeting Agenda Wednesday, December 9, 2015 Page 6 of 8 Tuesday, February 2 3:30 p.m. Regular Meeting of Public Safety Coordinating Council Wednesday, February 3 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Wednesday, February 10 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Monday, February 15 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Tuesday, January 16 10:00 a.m. 911 User Board Meeting, at 911 Monday, February 22 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Wednesday, February 24 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Monday, February 29 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Board of Commissioners' Business Meeting Agenda Wednesday, December 9, 2015 Page 7 of 8 Tuesday, March 1 3:30 p.m. Regular Meeting of Public Safety Coordinating Council Wednesday, March 2 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Monday, March 7 10:00 a.m. Board of Commissioners' Business Meeting 1:30 p.m. Administrative Work Session—could include executive session(s) Deschutes County encourages persons with disabilities to participate in all programs and activities. To request this information in an alternate format please call (541)617-4747, or email or" ken.harms@deschutes.org. Board of Commissioners' Business Meeting Agenda Wednesday, December 9, 2015 Page 8 of 8 wP I I k 0' i" Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org ADDITION TO BUSINESS MEETING AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 10:00 A.M., WEDNESDAY, DECEMBER 9, 2015 Commissioners'Hearing Room-Administration Building- 1300 NW Wall St.,Bend CONSIDERATION of Board Signature of Document No. 2015-745, a Decision on a Conditional Use Permit Appeal (Clough) —Paul Blikstad, Community Development Suggested Action: Move signature of Document No. 2015-745. gG 06 °P/ { Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 -www.dcschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of Dec. 9, 2015 DATE: December 3, 2015 FROM: Peter Russell CDD (541) 383-6718 TITLE OF AGENDA ITEM: Continuation of November 23, 2015, Board public hearing on Ord. 2015-007, an ordinance amending the Deschutes County Comprehensive Plan to add an Exception to Statewide Planning Goal 11 (Public Facilities and Services) to allow for sewers in unincorporated lands in southern Deschutes County; amend the Newberry Country Plan to not allow for upzoning; and amend the Deschutes County Comprehensive Plan map to indicate the affected tax lots. PUBLIC HEARING ON THIS DATE? YES. BACKGROUND AND POLICY IMPLICATIONS: At the November 23 P ublic hearing the Board continued the hearing until December 9. The Board requested staff to contact various venues in South County regarding their availability to be the site of a continued Goal 11 hearing in late December or January. FISCAL IMPLICATIONS: None. RECOMMENDATION& ACTION REQUESTED: R ece iv e t h e update from sta ff regarding p ossible South County venues and accept public testimony then set a date certain to continue the public hearing and/or begin deliberations. ATTENDANCE: Peter Russell. DISTRIBUTION OF DOCUMENTS: Peter Russell PRELIMINARY STATEMENT FOR A LEGISLATIVE PUBLIC HEARING BEFORE THE DESCHUTES COUNTY BOARD OF COMMISSIONERS • The applicants have the burden of proving that they are entitled to the approval requested. • Testimony and evidence at this hearing must be directed toward the approval criteria, as well as toward any other criteria in the comprehensive land use plan of the County or land use regulations which any person believes apply to this decision. • Failure on the part of any person to raise an issue with sufficient specificity to afford the Board of County Commissioners and parties to this proceeding an opportunity to respond to the issue precludes appeal to the Land Use Board of Appeals on that issue. Additionally, failure of the applicant to raise constitutional or other issues relating to the approval with sufficient specificity to allow the Board to respond to the issue precludes an action for damages in circuit court. • The Board's decision on this application will be based upon the record and the Staff Report and the testimony and evidence presented at this hearing. • The hearing will be conducted in the following order. 1. The staff will give a report. 2. The applicant presents testimony and evidence. 3. Proponents and opponents testify and present evidence. 4. The applicant presents rebuttal testimony. 5. At the Board's discretion, if the applicants presented new evidence on rebuttal, opponents may be recognized for a rebuttal presentation. 6. Staff will be afforded an opportunity to make any closing comments. • The Board may limit the time period for presentations. • If anyone wishes to ask a question of a witness, the person may direct the question to the Chair. The Chair is free to decide whether or not to ask such questions of the witness. • The grant of a continuance or record extension shall be at the discretion of the Board. • If the Board grants a continuance, it shall continue the public hearing to a date certain. • If, at the conclusion of the hearing, the Board leaves the record open for additional written evidence or testimony, the record shall be left open to a date certain for submittal of new written evidence or testimony. • If the hearing is continued or the record left open, the applicant shall also be allowed a period to a date certain after the record is closed to all other parties to submit final written arguments but no new evidence in support of the application. • Commissioners must disclose any conflicts of interest. Does any commissioner have anything to disclose and, if so, please state the nature and extent? • Does any party wish to challenge any Commissioner based on conflicts of interest? Venues for 6-9 p.m. Public Hearing on Goal 11 Exception Location Dates La Pine HS Auditorium January 4 January 6 January 27 La Pine Senior Center January 6 January 27 )-r o, ° 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 AGENDA REQUEST & STAFF REPORT For Board Business Meeting of December 9, 2015 DATE: December 9, 2015 FROM: Judith M. Ure Administrative Services 541-330-4627 TITLE OF AGENDA ITEM: Consideration of converting$10,000 portion of a business loan made to Geo-Spatial Solutions, Inc. (currently doing business as FireWhat, Inc.) to a grant. PUBLIC HEARING ON THIS DATE? No. BACKGROUND AND POLICY IMPLICATIONS: The Deschutes County Business Development Forgivable Loan Program was initiated to encourage and assist companies seeking to relocate and/or create new jobs within Deschutes County. To receive a loan, companies must agree to create a specific number of jobs within a defined period, then maintain that level of employment for an additional set period of time. Geo-Spatial Solutions, Inc. (currently doing business as FireWhat, Inc.)received a business development loan in the amount of$20,000 on July 22, 2011 with terms that included adding ten(10) full-time employees on or before July 22, 2013 and maintaining a level of fifteen(15) full-time employees through July 22, 2014. As certified by Economic Development for Central Oregon(EDCO), Geo-Spatial Solutions created and maintained five(5)new full-time jobs by the due dates and will repay a portion of the loan in the amount of $10,000 that corresponds with principle and interest related to the five (5) full-time positions agreed to, but not created. In accordance with the Business Development Forgivable Loan Program, G.L. Solutions is eligible to have the remaining $1 0,000 of the loan converted to a grant. FISCAL IMPLICATIONS: None. RECOMMENDATION & ACTION REQUESTED: Authorize County Administrator to convert a$10,000 portion of the business loan made to Geo-Spatial Solutions, Inc. to a grant and execute a repayment agreement for the remaining$10,000. ATTENDANCE: Judith Ure, Management Analyst DISTRIBUTION OF DOCUMENTS: N/A DESCHUTES COUNTY Business Development Forgivable Loan Program Loan Recipient: Geo-Spatial Solutions, Inc. (currently doing business as FireWhat, Inc.) PO Box 6005 Bend, OR 97708-6005 541-388-6570 Agreement No.: DC-2011-641 Date of Agreement: October 31,2011 On behalf of Economic Development for Central Oregon,I hereby certify that Geo-Spatial Solutions,Inc. (currently doing business as FireWhat,Inc.)has complied with the conditions of the Deschutes County Business Development Forgivable Loan Program as specified in Agreement DC-2011-641 (attached). I further attest that a representative of Economic Development for Central Oregon has reviewed employment,payroll, and accounting records furnished by Geo-Solutions,Inc. and that such records confirm that Geo-Spatial Solutions, Inc.: a) Employed a baseline of five(5) full-time employees on July 22,2011, and b) Agreed to increase the number of full-time employees by ten(10) for a total of fifteen full-time employees on or before July 22,2013,. and b) Actually, increased the number of full-time employees by five(5) for a total of ten(10) full-time employees on or before July 22, 2013, and c) Maintained a total of ten(10) full-time employees over any 12-month period through July 22,2014, and d) Will repay a portion of the Deschutes County business development forgivable loan in the amount of$10,000 that corresponds with the principle and interest related to the five (5)full-time positions agreed to,but not created. I therefore,request that the Deschutes County Board of Commissioners authorize that the remaining portion of the business development loan to Geo-Spatial Solutions, Inc.be converted to a grant in accordance with the terms of the attached agreement. Economic Development for Central Oregon By: / .... !� Title: bim- - Date: ,de, - - 1, 2 015 r(t 4µ LEGAL COUNSEL DESCHUTES COUNTY Business Development Forgivable Loan Fund ....................... AGREEMENT FOR GEO-SPATIAL SOLUTIONS,INC This Development Agreement("Agreement")is entered into: BETWEEN: Deschutes County (hereinafter referred to as `'aunty') 1300 NW Wall Street,Suite 200 Bend,OR 97701 Facsimile number: (541) 385-3202 Phone: (541) 388-6570 AND: Geo-Spatial Solutions Inc.(GSS) (hereinafter referred in as 'Company' 598 NW Hill Street Bend,OR 97701 Phone: 541-330-0371 RECITALS WHEREAS,the County finds that the program set forth in this Agreement will promote state and local economic activity by creating new jobs and investment;and WHEREAS,the Company wishes to expand its existing equipment and business operations within Bend by increasing employment and investing in equipment;and WHEREAS,the said expansion will create at least 10 new jobs by July 22,2013,over and above the Company's current employment of five employees as of July 22,2011 and WHEREAS,the County desires to promote the expansion of the Company's facility by loaning funds to the Company for equipment purchase and personnel expenses and such loan will later be converted to a grant upon the condition that the Company satisfy certain requirements;and WHEREAS,the County has engaged Economic Development for Central Oregon ("EDCO") to assist in administering and implementing the loan; NOW,THEREFORE,in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged, the parties agree to as follows: Geo-Spatial Solutions,Inc. Page 1 of 5 DC - 41 SECTION 1 DEFINITIONS Section 1.1 Dollars and$ shall mean lawful money of the United States of America. Section 1.2 Loan shall mean the funds loaned by County to Company as provided under Section 3. Section 1.3 Project shall mean expansion of Company employment in Bend,Oregon by hiring at least 10 new employees by July 22,2013,over and above the Company's current employment of five employees as of July 22,2011. Section L4 Full Time Employee shall mean any employee who has been hired with the expectation that the job will last for at least one (1)year and who will work at least forty (40)hours per week or the equivalent of 2,080 hours per year. SECTION 2 TERM This agreement shall be effective as of the date of execution by all parties and continue until the Loan is paid in full or the Loan is converted to a grant as provided in Section 3.2 below. SECTION 3 LOAN Section 3.1 Loan The County agrees to loan the Company the sum of$20,000 no later than 30 days following the signing of this agreement. Section 3.2 Loan Purpose and Representations of the Company The purpose of the Loan is to carry out the Project,and for no other purposes. The Company represents and warrants that it will diligently pursue and complete the following: 3.2.1 Company will employ a minimum of 10 additional Full Time Employees and maintain this level over any 12 month period through July 22,2014. Company baseline FTE employment as of July 22,2011 is five. Total Company employment to be reached and maintained by July 22, 2013 is determined to be 15 Full Time Employees or the equivalent. 3.2.2 Company will submit quarterly progress reports to EDCO with documentation for job creation, capital investment relating to new facilities and equipment associated with the Project. 3.2.3 Company shall comply with all applicable federal,state,regional and local laws, regulations and ordinances. 3.2.4 Company shall timely pay all Deschutes County real and personal property tax when due and shall satisfy all delinquent property tax accounts in full. Section 3.3 Loan Repayment or Conversion to Grant 3.3.1 Unless the Loan is converted to a grant as provided below,the Company agrees to pay to the order of the County the full amount of the Loan,plus interest at the rate of 8%per annum Geo-Spatial Solutions,Inc. Page 2 of 5 starting with the date County releases funds to Company,upon the earlier of: (a) the occurrence of an Event of Default,as defined below,or(b)July 22,2013. 3.3.2 The County agrees to convert the Loan to a grant that does not need to be repaid,if and when the County determines in its sole discretion that the Company has satisfied all of the obligations in Section 3.3 and its other obligations under this Agreement. Such conversion shall only be effective upon written verification by the County Administrator that the loan has been converted to a grant. 3.3.3 The County may in its sole discretion convert a portion of the Loan to a grant if all of the obligations under Section 3.3 and this Agreement have been satisfied to the reasonable satisfaction of the County,except the obligation under Section 3.2.1 to employ 10 Full Time Employees. In the event of such partial conversion of the Loan,the Loan shall continue to be payable in an amount determined by multiplying$2,000 by the difference between 10 and the lesser of(a)number of Full Time Employees employed by the Company as of July 22,2013,or the number of Full Time Employees employed by the Company as of July 22,2014. For example,if the Company employs 15 Full Time Employees as of July 22,2014 and 13 Full Time Employees on July 22,2013,the amount of the Loan payable by the Company would be$2,000 x (15 - 13)=$4,000. SECTION 4 DEFAULT Section 4.1 Events of Default The following shall be Events of Default: 4.1.1 Company fails to complete,or the County reasonably determines that the Company will not be able complete,the obligations described in Section 3.3 and its other obligations under this Agreement;provided,however,that upon such failure or determination,the County shall first provide to the Company written notice of such failure or determination,and the Company shall have thirty(30) days to correct the matter. If the matter has not been corrected by the Company within such thirty(30) day period, to the reasonable satisfaction of the County,the County shall be entitled to declare the Company in default of its obligations under this Agreement and the Loan, plus accrued interest shall be payable in full. 4.L2 Company effects a change of ownership,a change of control of its business,or relocates its business conducted in Redmond,Oregon on or before August 10,2014 (the end of the contract)without prior written consent of the County. 4.1.3 The occurrence of any event that has or may reasonably be expected to have a material adverse effect on Company's financial condition or Company's ability to make any payment required by this Agreement. 4.1.4 Company fails to pay,becomes insolvent or unable to pay,or admits in writing an inability to pay Company's debts as they become due,or makes a general assignment for the benefit of creditors. 4.L5 A proceeding with respect to Company is commenced under any applicable law for the benefit of creditors,including but not limited to any bankruptcy or insolvency law,or an order for the appointment of a receiver,liquidator,trustee,custodian,or other officer having similar powers over Company is entered. Geo-Spatial Solutions,Inc. Page 3 of 5 SECTION 5 MISCELLANEOUS Section 5.1 Right to Inspect The Company agrees that the County,their agents and employees, shall be entitled,upon reasonable prior notice to the Company, to access and inspect the property and employment records of the Company and its affiliates in order to insure that the Company is complying with the terms of this Agreement and all applicable federal, state and local laws and regulations. The right to inspection shall also include any property or employment records that are in the possession of any affiliate of the Company. The right of inspection shall continue until all of the obligations of the Company under this Agreement have been satisfied. Section 5.2 Attorney's Fee Provision In the event suit or action is instituted to enforce any of the terms or conditions of this Agreement, the losing party shall pay to the prevailing party,in addition to the costs and disbursements allowed by statute,such sum as the court may adjudge reasonable as attorney fees in such suit or action,in both trial court and appellate courts. Section 5.3 Indemnification Company shall defend,indemnify and hold harmless County and EDCO, their officers,agents employees and members from all claims,suits,and causes of action including attorney's fees,of any nature whatsoever relating to claims by third parties resulting from or arising out of the Loan,this Agreement,or funds provided to the Company under this Agreement. Except as otherwise provided in this Section 5.3, County and EDCO shall defend,indemnify and hold harmless Company,their officers, agents,employees and members from all claims, suits, and causes of action including attorney's fees,relating to claims by third parties as to the validity under public finance law of this Agreement or funds provided to the Company under this Agreement. Section 5.4 Entire Agreement This Agreement constitutes the entire agreement between the parties regarding the matters herein. Section 5.6 Tides and Subtitles The titles in this Agreement are for convenience only and in no way define,limit,or describe the scope or intent of any provision of this Agreement. Section 5.7 Notice All notices,requests demands, and other communications to or upon the parties hereto shall be in writing and shall be deemed to have been duly given or made:upon actual receipt if delivered personally or by fax or an overnight delivery service;and at the end of the third business day after the date of deposit in the United States mail,postage pre-paid,certified,return receipt requested;and to the addresses set forth on page 1 of this Agreement or at such other address of which such party shall have notified in writing the other parties hereto. Geo-Spatial Solutions,Inc. Page 4 of 5 Section 5.8 Time is of the Essence All parties agree that time is of the essence under this Agreement. Section 5.9 Applicable Law This agreement is made,and shall be construed and interpreted under the laws of the State of Oregon without regard to the principles of conflicts of law.Venue shall lie in state courts located in Deschutes County,Oregon,provided,however,if the Claim must be brought in a federal forum,then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon. Section 5.10 Disclosure Under Oregon law,most agreements,promises and commitments made by a lender after October 3, 1989 concerning loans and other credit extensions which are not for personal,family or household purposes or secured solely by borrower's residence must be in writing, express consideration and be signed by the lender to be enforceable. Section 5.11 No Waiver No failure or delay of County in exercising any right,power or remedy under this Agreement shall operate as a waiver of such right,power or remedy of County or of any other right. A waiver of any provision of this Agreement shall not constitute a waiver of or prejudice County's right otherwise to demand strict compliance with that provision or any other provision. Any waiver,permit,consent or approval of any kind or character on the part of County must be in writing and shall be effective only to the extent specifically set forth in such writing. Section 5.12 No Assignment by Company No obligation or right under this Agreement may be assigned by the Company without the prior consent of the County,which consent may be withheld,conditioned,or delayed in the sole discretion of the County. IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed as of the dates set forth below their respective signatures. Deschutes County By: 1 Erik Kropp, nterim County Administrator Pp� tY Date: 0\31 (∎, GEO-SPAT SOLUTION By: /O1(WI Rus// Merritt,CE• Date: /0/x//1 Geo-Spatial Solutions,Inc. Page 5 of 5