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2018-176-Minutes for Meeting April 12,2018 Recorded 5/22/2018• BOARD OF COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541 ) 388-65%0 9.00 AM Recorded in Deschutes County CJ2018-176 Nancy Blankenship, County Clerk Commissioners' ,journal 05/22/2018 9:44:36 AM THURSDAY, APRIL 12, 2018 2018-176 BARNES & SAWYER ROOMS Present were Commissioners Tammy Baney, Phil Henderson and Anthony DeBone. Also present mere Erik Kropp, Deputy County Administrator; David Doyle, County Counsel; and Sharon Keith, Board Executive Assistant. Several citizens and representatives of the media were in attendance. CALL TO ORDER: Chair DeBone called the meeting to order at 9:02 a.m. PUBLIC HEARING: Appeals of Hearings Officer decisions related to the KCDG/Tanager applications Anthony Raguine, Senior Planner reviewed the hearing procedures. Commissioner DeBone explained the time expectations. Regarding the Board's disclosure, Commissioner Baney explained there were many emails that came through to the Board and those emails will be entered into the record. The Board did not have any conflicts to disclosure and hearing no challenge from the audience, Commissioner DeBone opened the public hearing. Ken Katzaroff, co -counsel representing the applicant presented on behalf of Tanager. A copy of the presentation is included with the record. There are two projects involving Tanager Development for a site development and recreational PAGE 1 OF 10 facility and a separate KCDG project for surfacing mining. Mr. Katzaroff reviewed maps of the subject property from 1994 to present time. Mr. Katzaroff explained the history of the applications and Hearings Officer's decision in 2016. The planned development includes ten lots to be 2 acres or greater in size. In order to achieve the planned configuration the development will require lot line adjustments. Wendy Wente, Wildlife Biologist with Mason, Burse & Girad presented her testimony of her wildlife habitat plan for the proposed open space. The property is ponderosa pine and juniper and has some vegetation. Ms. Wente reviewed the key elements of design planned for wildlife. Ms. Wente spoke on the requirements of Oregon Department of Fish and Wildlife. Mr. Katzaroff explained their opinion on the development's harmonious compatibility and explained their review of potential traffic, visual, and sound impacts. Liz Fancher, co -counsel representing Tanager spoke to the major issues in the Hearings Officer's decision in 2016. Ms. Fancher explained her conclusions. Mr. Katzaroff states they are asking the Board to approve the surface mining permit. He also addressed the plan amendment, stating it was approved but they do not feel it is necessary, however they ask the Board to approve the plan amendment as well. RECESS: A short recess was taken at 10:58 a.m. and the hearing was reconvened at 11:06 a.m. Carol MacBeth, gave testimony on behalf of appellant Central Oregon LandWatch. Ms. MacBeth stated the complexity of the record can be traced to code enforcement. Ms. MacBeth spoke on the deer winter range boundaries and the allowed uses compatible in those areas. Recreational facilities are among those activities that are not allowed in the deer winter range. Oregon Department of Fish and Wildlife set these categories due to their requirements for the species. Ms. PAGE 2_OF10 MacBeth noted relative to the season of winter deer range verses the summer time recreation it is physically displacing the species. Central Oregon LandWatch feels the ponds are acceptable to the area but the recreational facility is not compatible. Ms. MacBeth recalled a situation in Alfalfa where someone tried to develop a water ski lake and was told by the County it was unlawful and was required to fill in the excavated area and Central Oregon LandWatch would request the same response for this applicant. Jennifer Bragar representing appellant Thomas Bishop presented in opposition to the application. Ms. Bragar spoke on the many instances of opposition by community members for many years. The Bishops had submitted complaints to the Tumalo Irrigation District regarding water transfer in 2014. Ms. Bragar presented historical information on the subject property and of the proposed development. She noted large recreational facilities are prohibited in the winter deer range. The application focuses on surface mines rather than wildlife habitat and the conditional use is not compatible. Ms. Bragar also opined KCDG has not disclosed full and accurate data regarding the surface mining. She spoke on the impacts to the area. Ms. Bragar commented the answer to the problem is to fully reclaim the site. Ms. Bragar will present a map to the Board showing the Bishop's property and road access points. Ms. Bragar stated Tumalo Irrigation District would need to fill the lake with water but there is no way to send the water back through the piping. Ms. Bragar stated the neighboring property owners shouldn't have to suffer from the impacts of this activity. Ms. Bragar requests that the applications be denied. Commissioner Baney asked Mr. Raguine to clarify the comments regarding definitions in surface mining as well as a County Legal interpretation. Commissioner Henderson would like time to review the actual statutes. RECESS: At the time of 12:32 p.m. the Board took a recess and reconvened at 1:20 p.m. Commissioner DeBone noted the time expectations for the testimony. At this time, Commissioner DeBone opened the hearing for public testimony. PAGE 3OF10 Paul Lipscomb: full time resident of the Sisters Country area and is not a neighbor of the area of the subject property. He noted his history as a circuit court judge and spoke on the rule of law. He asks the Board to not allow this development to proceed. Roy Dwyer: spoke on opposition to the developer's proposal. He is a resident near the subject property and spoke of the beauty of the area. Mr. Dwyer stated the planned subdivision is acceptable but not the ski lake. Dr. Archie Bleyer: spoke on his employment history and he and his wife have been a homeowner here for more than 40 years. He spoke on the open space requirements. He asked the Board to deny the recreational facility. Scott Waters: Resident of Bend since 1992. He thanked the Board for hearing the appeal. His property is bound on two sides of the subject property. Mr. Waters noted his full support of the applications. When he purchased the property ten years ago, the realtor mentioned there was a possibility of the development of a ski lake. Andy Niedzwiecke: fully supports the project. When he first became aware of the surface mining he was amazed at the process. For habitat impacts, he would rather look at the lakes than dry empty pits. lacqueline Newbold: presented a message on behalf of 79 elk as they do not have a voice and they ask the Board to protect their habitat. People want to move here because they love the nature and wildlife. She has lived in the area for 33 years but doesn't remember the elk always being there other than a few years ago. She is worried their land is getting fractured. Harris Kimble: is a member of KCDG development and thanks the Board for the hearing. One point to make is the top soil proposed for removal and relocation on site would require less than 18 inches to cover the area and would not create a sunken meadow. The other point was regarding gravel that was supposedly exported to another property which Mr. Kimble said was incorrect. Mr. Kimble stated when developing the ponds he was told there was no need for a permit and met with Planning from 2004 and 2013. The plan was developed in 2005. The only time he was told of a permit was if there was a recreational facility there would be a required permit. PAGE 4 OF 10 leff Perrault: spoke on the comments from Judge Lipscomb on ignorance of the law. When he looks at the map he sees two features that shouldn't be there. There should have been a public process prior to the construction. There should be a sense of fairness of an honest debate. Susan Strauss: noted that she and her husband have a light industrial building and they have always done everything correct in regards to their business. She feels that professional advice should have been requested for this development. She is not in support of this project. Her family has lived here since 1979. She commented that wildlife are being diminished and what upsets her is the proposed use of ground water for this development. Scott Peters: commented that he assumes the Board knows the law and speaks on behalf of the community's rights to develop land and to use water as intended. He and his wife plan to purchase a parcel in the proposed development. Veronica Newton Hudson: Talked on behalf of the deer. She spoke on the deer and elk life on the winter deer range. Bend was built right in the middle of these wintering grounds and Highway 97 cuts right through. She spoke on the impact of human life on the wildlife. Dr. Hudson commented on the excavation of land to create the water ski lake and how the development will affect the deer. Will VanVector: represents his client ERMK, LLC that has concern the development will affect their open surface mine adjacent to the subject property. Mr. VanVector asked the Board to approve the conditional use as it protects existing use and compatibility. Gerardo Pandal: just moved here a few months ago with his family. He has been to the property a few times and would love to buy a lot there. im Holt: lives near a former surface mine that has been recovered. He spoke on building his house and the process. Mr. Holt spoke on TID's involvement and the piping. Janet Sleath: She and her husband live Y2 mile south of the proposed development and they feel this would have a significant negative affect in the neighborhood. They feel the development would have a negative effect on their property value. One of the reasons they chose the home was for the rural nature of the neighborhood and it is so peaceful. They are also concerned with the impact on PAGE 5OF10 wildlife. She stated water is a precious commodity and using water to fill a ski lake is not a good use. Beverly Morales: She and her husband own property two properties from the south lake and immediately across from the north lake. She is concerned because it is a rural residential area and is beautiful. There will be increased traffic. She spoke on a statement from a water expert that the water would need to be used by the lakes and residents and there is no public water as the residents have drilled wells. She spoke on the increase of noise that is expected with this type of use. Jamie Hildebrandt: operates Rock Springs Ranch and owns a PUC regulated water system and the thought of pumping ground water to supply the lakes is ludicrous. Lance lulander: owns 14 acres adjacent to the property and is supportive of the project. Mr. Julander stated he moved back to Bend from Houston and lived on a 100 -acre water ski lake. Carl Cadwell: is a water ski nut and feels the lakes are pristine and quiet and a great place for families. This has been a difficult process for the family and stated this project is awesome. Judy Campuzano: lives at the south part of the south lake and they have been through the beginning before it was mined. The noise study was done and the neighbors were invited and not one person went to this. Ms. Campzano spoke on the wildlife in the area as well as the maintenance and gravel done to the access road. Bob Varco: has lived here since 1956 and works at Tumalo Irrigation District. He spoke on the abandoned surface mines. Mr. Varco commented on the condition of Harris's residence that was well done. They have the blessing for the development of the ski lakes. Mr. Varco asked why TO is interested in water storage because they need to deliver a supply of water. Commissioner Baney asked for clarification if there is an ability for water circulation. Mr. Varco explained the plan for the reservoir and the plans for a pumping station. Mr. Varco talked about the Two Bulls Fire and the generosity of the Cadwell family to use the water to fill the equipment for firefighting. Mr. Varco clarified water use relative to the water storage reservoirs. PAGE 6OF10 Will Hammock: Is a neighboring property owner. Mr. Hammock showed a map of the area showing the reservoir and has been able to see the process. Mr. Hammock spoke on the wildlife in the area. Caroline Bearden: She is not a resident of Bend and lives in the tri -cities and have known the Cadwell family for quite some time. Taylor Geraths: is a native Oregonian. He said as a kid there were no fires and the first he recalls was in 1988 and since the lakes have been there the reservoirs have fought the fires over the years. Katie Anderson: commented on the unwillingness to compromise. She was asked by the Cadwells to assist on a professional development standpoint. Ms. Anderson explained an Easement Maintenance Agreement relative to planned communities. Elizabeth Hoefle: has a property that borders the subject property and reduces the overall quality of life for not only the neighbors but wildlife. Regarding the ground water, if her water usage is affected it will cause a great impact. She spoke on the condition and impact of the gravel road. Ms. Hoefle commented the Cadwells have proceeded without approval and permits for the development. Charles Wilkinson: spoke on the surface mine and the progression of the development which makes sense to him. He supports the project. Betsy Magdall: lives in the neighborhood and is opposed to the development. A competition ski lake is not consistent with a rural neighborhood. She sees this as a danger and as a waste of ground water. Ms. Magdall stated you can't claim the use of water for firefighting when it is a private use ski lake and what happens if there is a fire during a ski competition. Patrick Geary: lives in the area and is 610 feet away from the proposed ski lake. Mr. Geary has been on the property before it was mined. He purchased his property since 1986 and enjoys the quiet community. The water ski lake is invasive to their community. There is a concern on impact and deprivation of water. Mr. Geary reviewed the cost to the community to defend their private property. Written testimony of Cynthia Johnson was submitted to Anthony Raguine for the record. PAGE 7 OF 10 Nunzie Gould: lives in rural Tumalo. She commented it was clear that removing the lake is in the Board's better short-term and long-term choice. Her testimony explained comment on home affordability, private use, ground water use, compatibility, wildlife habitat overlay zone, and CDD enforcement. She asked the Board to have vision as the public rely on the Board. David Knauss: thanked the Board for their hard work and noted opposition makes things better and causes refinement. He knows the Cadwells and highly recommends them. Commissioner Baney inquired if there is marketing materials specific to rentals. Mr. Raguine said there was not. RECESS: A short recess was taken at 3:39 p.m. and was reconvened at 3:51 p.m. lennifer Brager: requested the Board leave the record open. Ms. Brager spoke on the development and the process that should have taken place. In the context of existing code enforcement violations, Ms. Brager compared this application to a marijuana production application submitted by the Fagens and disallowed by Hearings Officer Fancher (co -counsel for applicant) due to existing code violations. Carol MacBeth: spoke on decibel levels and sound levels can be interpreted differently by different people. Central Oregon LanclWatch has two tables noting sound levels. Ken Katzaroff: responded on the claims they should have acquired the proper permits. He spoke on the road access. Mr. Katzaroff reviewed the legal history of the application. His feeling is the deer are more abundant due to the existence of the lake. Mr. Katzaroff explained the slope and depths of the lakes and stated fencing is not required as there is no safety risk. He explained there will not be any impacts to the ground water. He clarified there was a permit for rock crushing to take boulders from the south pond to be used for gravel for road construction. Mr. Katzaroff stated even if a violation occurred in 2014 Deschutes County Code is limited as how long you can prosecute. Mr. Katzaroff stated they don't feel they did PAGE 8OF10 make a violation but even if they did Deschutes County is not able to prosecute them. Commissioner Baney asked for clarification on water storage and right of first refusal of water. TID has an agreement with them and recorded against their property. The statement they didn't apply for an operating permit is incorrect. Commissioner Baney requested a comment back in writing regarding clarification of the excavation work and permit process. Commissioner Henderson requested clarification on the road access and maintenance. Liz Fancher responded on the purpose of on-site road construction for the subject property. Liz Fancher would like to review the Fagen marijuana production application and respond to the statements in an earlier testimony. At the time of application for that specific case, there weren't any code violations. Ms. Fancher also provided information on definitions of surface mining through state law. Mr. Katzaroff reviewed the subject property and the plan to turn them into 19 potential home sites. Commissioner Baney inquired on impact and if there would be rental properties. Mr. Katzaroff stated there is the possibility of homes being rented. If the Board has restrictions on that, then the applicant might consider. Mr, Katzaroff stated he can have as many people over that he wants at his property. Only one boat is allowed on the lake at a time and they don't see that as a problem. Mr. Katzaroff stated it is a private facility and has never been intended for commercial use. Commissioner Baney commented on the noise level. Mr. Katzaroff stated they don't have any information on that level. Commissioner Henderson inquired on the definition of re -regulation. Mr. Katzaroff noted it allows Tumalo Irrigation District to store the water there and could pump out of the north pond. Commissioner Henderson would be interested in legal briefing on the issue of alleged reasonable reliance on statement by planning staff. Mr. Katzaroff stated the belief in what staff say but they were told they didn't need a permit. Commissioner Baney explained that something in writing from staff may have been beneficial to the development. Anthony Raguine spoke on the calendar of events for this item. Commissioner DeBone noted this was the oral portion of the hearing. Mr. Raguine noted one of the parties could request a longer period. The second seven days is for rebuttal to additional testimony. The third seven days is just for the applicant. The appellant requested 14 days for the written record. The applicant would request only seven days for written record, seven day rebuttal, and a final 14 days for response. The PAGE 9OF10 appellant and Central Oregon Landwatch agreed with a 14, 14, and 14 calendar. The applicant prefers 7, 7, and 7. Mr. Raguine noted new written testimony would be due April 20th at 5:00 p.m., the next round for rebuttal is due April 27th at 5:00 p.m., and the final argument for the applicant is May 4th at 5:00 p.m. A Work Session would be the next step. Deliberations would then be scheduled. The final date for 150 -day clock is June 30th and is extended additionally by the open record period. Commissioner Baney commented on the testimony received today and thanked the audience. Being no further items to come before the Board, the meeting was adjourned at 5:14- p.m. DATED this—ADay of 2018 for the Deschutes County Board of Commissioners. PAGE 10 OF 10 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/ PUBLIC HEARING AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 9:00 AM, THURSDAY, APRIL 12, 2018 Barnes and Sawyer Rooms - Deschutes Services Center — 1300 NW Wall Street — Bend Call to Order PUBLIC HEARING 1. Public Hearing: Appeals of Hearings Officer decisions related to the KCDG/Tanager applications. - Anthony Raguine, Senior Planner Adjournment To watch this meeting on line, go to: www.deschutes.org/meetings 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 activities. To request this information in an alternate format please call (541) 617-4747. FUTURE MEETINGS: Additional meeting dates available at www.deschu!gs.org/meetingcalendar (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.) Board of Commissioners Public Hearing Agenda Thursday, April 12, 2018 Page 1 of 1 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners Public Hearing of April 12, 2018 DATE: April 6, 2018 FROM: Anthony Raguine, Community Development, 541-617-4739 TITLE OF AGENDA ITEM: Public Hearing: Appeals of Hearings Officer decisions related to the KCDG/Tanager applications. RECOMMENDATION & ACTION REQUESTED: KCDG applied for conditional use permit and plan amendment approval for surface mining and to add a portion of the subject property to the Non -Significant Mineral and Aggregate Inventory, respectively. Tanager applied for conditional use permit and site plan approval for a recreation -oriented facility (ski lake), along with conditional use permit and tentative plan approval for a 10 -lot subdivision. The Hearings Officer denied the conditional use permit for surface mining and the conditional use permit for the ski lake. The Hearings Officer approved the plan amendment, and the conditional use permit and tentative plan for the subdivision. A total of three appeals were filed in response to the Hearings Officer's decisions. On April 12, 2018, the Board of County Commissioners will conduct a public hearing on all three appeals. ATTENDANCE: Anthony Raguine, Senior Planner b �S G r) m X z 00 C' m X z Im is I sm m sm ME 4021M. rpl 9 m alm Fmv,,, BE LLJ z 0: $ {; {())()}{(}(\}}{ LU CL ol wi I _»a« S310HOS30 04 m 3 " 'd - it I K I El SNOUO3S NI aaiMl .... . ...... NVId 3AIIVINK M4 an'd VOIA v8nd VMH '- LLJ z 0: $ {; {())()}{(}(\}}{ LU CL ol wi I LOJI 130 oil M 0 too 2 CD ■ (D CL CL r -i- rEPL 0 0 on > 0 CL m MIR ■ r4L g. rMIL J « d� w2 \t: m � \ . \�}. ay HWA CIVIL ENGINEERING I SURVEYING I PLANNING TO: Ken Katzaroff FROM: Patrick Cole DATE: 4/11/2018 SUBJECT: PURA VIDA P.U.D. TENTATIVE PIAN Ken, I'm writing to clarify which properties are being used in the proposed Pura Vida P.U.D. development. The property consists of 3 legal lots of record. These lots of record are proposed to be subdivided into 10 new lots as a planned development and an open space area. Each created lot will be 2.00 acres or greater in size, as required under state law. Patrick Cole PIS 79157 62930 O. B. Riley Road, Suite 100 ♦ Bend, OR 97703 (541) 389-9351 www.hwa-inc.org 2 1 3 4 1 5 6 -s�i:� 3 01a (J', :8 r1 w Fi:,4d 17,;::a m1m l;r,`. SGAI fla:. ...i,.:.9 mm Co?, wGg �3..0 .:�:*. f 'a kkbSX f?^:E7 .Am SCQI IE,_3 K�'.-'i .us;,# k�;i t.z,w� �' :-.,�_ IN....f %= {?l s .:�;� 8w`\�. :.� L 3�;:A yf :f\tC ,: �?..�..{�'f :..�6Y l2•C3 4..,.+, G. '.,, .4.,.. ,1..li ..< �2-i �/! 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LOG 3 __� „ I f / ' (APPROX. LOC) \\ ;0 ( \ / 121 STANDARD PARKING IIL H-F- a'S Cj PROPOSED 1257SF OF LANDSCAPE (]SSF STAU-SAND (11 AOA REQUIRED) STALL. WITH )0 // �� ������-TTT / --�- • \ LANDSCAPE BUFFER \ _ _. - �a ,, -__�_ .._._ OFPERIMETER �\ SVADEA SCAPt:ERiMTE �, / / _ .�� .: ._ / �(2) M O r. (� (n (n W AROUNDPA KING F[RiMTER- --- ___ b _ � � STANDARD PA KING —' :y �-� XISTINGIP ft)PDAND \ / ��- i STALL AND()AD .� A'C' 1 _ = A UTIt 'EA TNT 3 STAIc,WITH10'�%r.✓a 10 -- O B f(\ �g _ TO TH NORTH D PIPE AROUND PERIMETER - - /.4?// �\. 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SEE DETAIL'C'FOR TYPICALBOATGARAGE I f y— l Q 0 BOAT RAMP /.o/ / I �v �l I I . r r; jl/ ROA � l/j o'Z:TDIST y- ,;uL117A Sr I/ l / U U a U a a a p w r z I� _ jI ) �d `yyyF y 6 )/ � 34' 3- DOOR TO WALKWAY (TYP) HID CANAL PIP ELI NE - I-\ I f / I / // c'P <; ,3. V / II �Ir\ > z � Y K S ui Sci _ N Q N ' D\\ ��R�E,XISTINGCONC. IRRIGATION\\�. 1/ �/ /l/ /� l S..IVERSION STRUCTURE/y 'A :1•\ III ,.//j/ �� HARBOR / ",v S $ �. `J �..� ��\ --'�`I // / I/ D U N LL I� VERIFY SCALES BAR EQUALS ONE INCH / ON ORIGINAL DRAWING SHEET PA ��YS' 12'OHDOORS I _ ( C / 7/ Jt// fij' (TO WATER) WATER) DOCK o ANF BOATHOUSE PN SECTION IA OF 1 SHEETS y � � r RDETAIL "C" (TYPICAL BOATHOUSE) PARKING DETAIL "B" I o' 1-=30" HW A # 041125 2 3 4 5 6 May 16, 2017 KC Development Group, LLC 63560 Johnson Road Bend OR. 97703 DS -S -AL Acoustical Engineer, inc. 15399 SW Burgundy Street Tigard, OR 97224 Attn: Ken Katzaroff, General Counsel & Special Projects Re: Tanager Development Project DSA File: 101171 At your request, I reviewed the proposed Tanager development project materials you sent me to determine if the proposed housing development would have any effect on the results of the noise study conducted by Daly-Standlee & Associates, Inc. in 2015. The 2015 study concerned the impacts to existing residences caused by motorized boating noise generated at the South Pond of the proposed recreation -oriented facility at 63560 Johnson Road northwest of Bend, Oregon. The study results showed that there would be insignificant impacts on those residences if ski - boat operations proposed by KC Development Group, LLC were allowed on the water facility. The materials reviewed to develop the conclusions presented in this letter include the proposed layout of the Tanager development, the topographical data. for the development site and adjacent property, the Deschutes County yard and setback requirements that would be applicable to structures constructed on the development lots, and your notes concerning the fact that development on the individual lots along the water facility will be required to have at least a 50 foot setback from the edge of the water facility. To determine the effect that houses in the Tanager development site will have on the conclusior->s presented in the Daly-Standlee & Associates, Inc. September 28, 2015 noise study report, I assumed new houses would be oriented on water -side lots with the main roof ridgeline oriented on a north/south line. An orientation such as that would be expected if the houses are constructed to highlight the South Pond views. In addition, I assumed the elevation at the base of the houses would be the ground elevation currently found approximately 50 feet from the top edge of the rock bed that forms the sides of the pond and I assumed the houses would be two stories. Finally, I assumed the houses constructed on the lots located along the South Pond would likely be 50 to 60 feet deep from front to back given the general size of homes in the area. Given the assumptions described above, new houses constructed on lots located along the South Pond will act as sound barriers between a ski -boat and existing homes as the boat traverses along; the waterway. The new homes will not produce a continuous barrier between the pond and the existing homes but they will be a barrier to the sound traveling to the existing homes when they break the line -of -sight between the boat and those homes. Given the presence of partial barriers along the edge of the South Pond, I estimate the noise level increases presented in ['able l of the September 28, 2015 Daly-Standlee & Associates, Inc. report (on page 31 of the report) could be reduced by 2 to 3 dB. Given the fact that the original report concluded the noise generated by 101171 KC Development Letter - 170516 Page 1 of 2 Exhibit GG 1 of 2 DSA. . acoustical Engineers, Inc. Tanager Development Project ski -boat operations on the South pond will have an insignificant impact on the acoustic environment typically found at existing residences located around the pond, with a reduced level of sound reaching the residences, the impact will be even less significant than originally predicted. The sound of ski boat operations is less than any regulated standard, including both the Deschutes County Noise Ordinance and Oregon Department of Environmental Quality standards. and will likely often be less than the general ambient sound level in the area. Finally, you recently asked me if I could address the operating hours that I believe the conclusions presented in the original report and in this letter would apply. Given the fact that the noise impact analysis was based on ambient noise measured on a Sunday, the quietest day of the week, I can state that I would expect the conclusions discussed above would be consistent with your proposed operating hour restrictions of between 7:00arn and 1 O:OOpm. If you have any questions about the information presented in the letter, give me a call to discuss them. Sincerely, DSA Acoustical Engineers, Inc. Kerrie O. Standlee, P.E. Principal f , N rFD� €rt 101171 KC Development Letter - 170516 Page 2 of 2 Exhibit GG 2 of 2 f � Kate l3ro n, Governor November 9, 2017 Bank of the Cascades 1700 NE 3rd St. Bend OR 97701 RE; DOGAIMI MLRR ID No. 09-0079 Release of Assignment of Deposit No. 106971 Dear Sirs, lDepa:ctin—E nt of Geology anel Mine--ral Irxduistries Mineral Land IZeguIation and Redainalion 229 Proadalbin Street SW Albany, OR 97321-2246 (541) 967-2039 F -ax; (541) 967-2075 �:�ti�y���,oregong;colon}y.orl; KC Development Group applied for an operating permit for DOGAMI site # 09-0079, located in Deschutes County site at tax lot 824 sec. 13 T17S RI lE on October 8, 2014. The permit was intended by the applicant to cover excavation work previously done as part of the construction of a water ski lake. The applicant was unable to obtain the land use approval necessary for DOGAMI to issue the permit. There is currently no active permit application for this site. The site currently meets the reclamation requirements of the proposed operating and reclamation plan. DOGAMI is not actively undertaking any enforcement actions related to the site at this time. The Assignment of Deposit referenced above for $ 500, executed December 10, 2014, with KC Development Group LLC as principal, may be released effective upon receipt of this letter. All obligations to the State of Oregon DOGAMI have been fulfilled, and the file has been closed. Sincerely, Vaughn Balzer Lead Reclamnationist Mineral Land Regulation & Reclamation c: KC Development Group LLC 63560 Johnson Road Bend OR 97703 ;;oE;CHU iES/'s4-0079 1 09-17F.W/a .IVIL ; SU ?VLYING PLANN11"lG FROM: Mark Douglas, P.E. DATE: 03/26/18 SUBJECT: KC Development Pond Slopes This memo describes the natural and developed slopes on the KCDG and Cadwell properties. Hickman Williams is extremely familiar with the property because it has provided surveying (including topographical) and civil engineering support to KCDG and the Cadwells. As shown on the attached Site Plan, the property has significant topographical changes. Steep elevation changes persist throughout the property, including nearly vertical slopes at Tumalo Creek and to the north of the south pond. Hickman Williams designed the south pond improvement. The design took advantage of the former mining pit. Questions have been raised regarding the developed slopes at the south pond. The slopes were specifically designed to allow vegetation to take root and to resist erosion. The same slope grade is also typically used in Centra) Oregon and is acceptable per J106.1 of the Oregon Structural Specialty Code, and the International Building Code, Serving Our Clients Since 1987 62930 0. B. Riley Road, Suite 100 0 Bend, OR 97703 (541) 389-9351 www.fiwa-inc.org Date: April 11, 2018 From: R. Scott Wallace, R.G., Wallace Group, Inc. Subject: KC Development Group Site 63560 Johnson Road Deschutes County, Oregon Project: 10793(l) wallaceGROUP Central. oregon's geosystenr experts OREGON RENr::WS This memorandum describes on-site soil conditions for a rural residential development proposed by KC Development Group in Bend, Oregon. The Wallace Group was commissioned to perform subsurface geotechnical exploration as part of site development design work in February 2017. Forty (40) test pits were excavated at representative locations across site to characterize the nature of on-site native soils, aggregate mine reclamation fill, and assess the suitability of these materials for use with standard residential septic disposal systems. Subsurface conditions on the proposed residential lots generally consisted of native or existing fill soil comprised of silty -sand with gravel, cobbles and scattered boulders to the full depth of exploration (4 to 8 feet below ground surface). Bedrock, groundwater or evidence of historic groundwater was not encountered in any of the test pit explorations. We understand that Hickman Williams & Associates (project Civil Engineer) incorporated on- site soils and elements of a former aggregate surface mine to establish erosion -resistant slopes and grades for the project. Based upon our geotechnical and geological findings, the granular native soils, fill materials, and cobble/boulders present at the site do not appear prone to slope failure or subsidence due to the proposed residential development or recreation -oriented facility. TWG18R029 Page 1 April 11, 2018 6291.5 NE 1811' St, Ste 1, Bend, OR 97701 p 1541,382.4707 f 1541.383.8118 wailacegroup-inc.com C. � TANAGER MEMORANDUM DATE: April 10, 2018 TO: Deschutes County Board of County Commissioners FROM: J. Kenneth Katzaroff, JD SUBJECT: OWRD Stipulated Judgment and Sworn Deposition Testimony On November 23, 2015, the Oregon Water Resources Department ("OWRD") issued an Order on Reconsideration ("Order") that essentially revoked a limited license that allowed TID to store water in ponds on KC Development Group LLC's ("KCDG") lands. The Order's issuance was a surprise, particularly the conclusion that TID had knowingly violated the law. TID filed for judicial review of that Order. Since then, extensive discovery, including sworn depositions of OWRD staff, TID staff and Board members, and KCDG members has taken place, resulting in a negotiated stipulated judgment ("Stipulated Judgment"), attached as Exhibit A. The Stipulated Judgment withdraws the finding of knowing violation and also: • Allows TID to continue irrigation deliveries to KCDG and the Cadwells; • Allows the ponds to remain at least at their current levels throughout the entire land use process, including any and all appeals; • Allows the ponds to remain at least at their current levels throughout any water rights applications, including any and all appeals, filed currently or within 30 days of a final land use decision; • Binds OWRD to expeditiously process any water rights applications filed regarding the ponds and storage of water. Throughout the discovery process, local OWRD staff Kyle Gorman and Jeremy Giffin were deposed. Both staffers opined that the pond system was one of the most efficient in Central Oregon. These deposition transcripts are public record, but we have submitted select portions of each. See Deposition of Kyle Gorman, Exhibit B, and Deposition of Jeremy Giffin, Exhibit C. Page 1 of 1 2/12/2018 11:10 AM 16CV01703 1 2 3 4 IN TIIE CIRCUIT COURT OF THE STATE OF OREGON 5 FOR THE COUNTY OF DESCHUTES 6 TUMALO IRRIGATION DISTRICT, Case No. 16CVO1703 7 Petitioner, STIPULATED GENERAL JUDGMENT 8 V. 9 OREGON WATER RESOURCES ORS 20.140 - State fees deferred at filing DEPARTMENT, 10 11 Respondent. 12 This matter comes before the court on a Petition for Judicial Review filed by Petitioner 13 Tumalo Irrigation District ("TID"), seeking review of the final order entitled "Order on 14 Reconsideration" that was issued by the Oregon Water Resources Department ("OWRD") on 15 November 23, 2015. This Judgment resolves the petition for judicial review of OWRD's Order 16 on Reconsideration, which is attached and incorporated herein as Exhibit 1. This Judgment also 17 addresses the use of the two lined ponds that are located within the lands served by TID and on 18 property currently owned by KC Development Group LLC. Based on the stipulation below of 19 TID and OWRD collectively the "Parties," and in the interest of avoiding further litigation; now, 20 therefore; 21 22 IT IS HEREBY ADJUDGED: 23 1 24 TID enters into this Judgment solely for the purpose of settlement, and nothing contained 25 herein may be taken as or construed to be an admission or concession of any violation of law, 26 rule, or regulation, or any other matter of fact or law, or of any liability or wrongdoing, all of Page 1 - STIPULATED GENERAL JUDGMENT EXHIBIT A 1 which TID expressly denies. TID does not admit any violation of state water laws. Specifically. 2 TID denies any wrongdoing as alleged by OWRD. No part of this Judgment, including its 3 statements and commitments, shall constitute evidence of any liability, fault, or wrongdoing by 4 TID, 5 2• 6 This Judgment shall not be construed or used as a waiver or limitation of any defense 7 otherwise available to TID in any action, or of TID's right to defend itself from, or make any 8 arguments in, any private, individual, regulatory, governmental, or claims or suits relating to the 9 subject matter or the terms of this judgment. 10 3. 11 The Parties expressly understand and agree that this Judgment is a compromise of 12 disputed claims and that the execution of and performance of obligations under this Judgment are 13 not to be construed as an admission of liability, law, or fact by any of the Parties subject to this 14 Judgment. 15 4• 16 This Judgment does not limit OWRD's right to proceed against TID in any form for any 17 future violations not expressly settled herein. 18 5• 19 The Parties agree to defend and comply with the terms of this Judgment. 20 6. 21 OWRD's finding of a "knowing violation" in the final order is withdrawn, including the 22 second sentence in paragraph number five in the Findings of Fact and the Ultimate Findings of 23 Fact on page 3 of the final order. 24 25 26 Page 2 - STIPULATED GENERAL JUDGMENT 7. 2 OWRD's finding that TID lacks authorization to store water in the North and South 3 Ponds is affirmed, including the "Enforcement Authority" paragraph on page one of the order, 4 and the "Conclusions of Law" in paragraph number one on page 3. 5 8. 6 OWRD will issue an order to drain the North and South Ponds to the bulge in system 7 level for irrigation purposes should land use proceedings and all corresponding appeals result in 8 an ultimate denial of all of the Deschutes County land use application numbers 247-17-000639 9 and 247-17-000627. If either or both of the land use applications are approved, then the ponds 10 will continue to be managed in accordance with this Judgment until OWRD issues a final agency 11 order on water right application(s) pending or filed within 30 days of the final land use approval, 12 seeking to store water in the South and North Ponds, and all appeals and remands on such final 13 agency order(s) are resolved. OWRD agrees to timely review and process any water right 14 application submitted for storage of water in the South and North Ponds. If no water right 15 application for storage of water is ultimately approved, then OWRD will issue an order to drain 16 the ponds as soon as reasonably possible to a bulge in system level for irrigation purposes. In the 17 event of an order to drain, TID will ensure the ponds are drained as soon as reasonably possible. 18 9• 19 TID may deliver irrigation and stock water from the TID canal into the South Pond to 20 serve lands identified in Certificates 74146 and 74147 and any applicable transfers that are 21 located around the North and South Ponds. TID shall lower the standpipe between the North and 22 South Ponds so that the water in the South Pond shall not exceed the water level observed as of 23 February 5, 2018. The staff plate gage in the South Pond shall be reset to equal zero for the 24 water levels observed as of February 5, 2018. The South Pond water level shall not exceed zero 25 on the reset staff plate gage at any time. Although the North Pond level will fluctuate, it shall 26 Page 3 - STIPULATED GENERAL JUDGMENT I not exceed l .0 feet, as measured on the existing staff plate gage located in the North Pond, at the 2 end of each irrigation season. 3 10, 4 During the irrigation season and any time while water is being delivered to the South 5 Pond, TID shall: 6 A. Monitor and continuously record water delivered to the South Pond; 7 B. No less than every seven days, monitor and record, to the nearest one-hundredth 8 of a foot, the water -level gage heights of the South and North Ponds; and 9 C. No less than every seven days, monitor and record diversion out of the South and 10 North Ponds for irrigation for the preceding seven days 11 Such measurements shall include a record of the date and time the measurement was taken. 12 TID shall gather the data and submit a report in an electronic format acceptable to the 13 Watermaster, no less frequently than every fourteen days, that includes the above information. 14 TID shall retain data collected pursuant to this paragraph for a minimum of five years. The 15 Parties recognize and agree that there will be losses in the system and measurement 16 uncertainties, and that the water delivered to the South Pond and removed for irrigation from the 17 South and North Ponds may not be equal, 18 11. 19 Upon reasonable notice, TID shall Secure access to OWRD's staff to survey, test and 20 inspect the ponds, water delivery systems, standpipe, monitoring equipment, staff plate gages 21 and measuring devices. OWRD may place its own measurement devices at its discretion. 22 12, 23 OWRD agrees not to issue a notice of civil penalties for violations noted in the final 24 order; provided however, that TID remains in compliance with this judgment. 25 26 Page 4 - STIPULATED GENERAL .IUDGMENT 1 13, 2 If OWRD issues a right to store water in the ponds that is ultimately upheld following 3 appeal as set forth in paragraph 8, or such water right is ultimately denied, the Parties shall be 4 released from compliance with the terms of paragraph 9, 10, and 11 of this Stipulated Judgment. 5 14. 6 The Parties shall each bear their own fees and costs. 7 IT IS SO STIPULATED; 8 9 Dated: C ;LILABETl1 E. HOWARD #012951 10 Attorney for Petitioner Tumalo Irrigation District 11 12 Dated: !� 13 C, COTTON # 085986 Attorney for Petitioner 14 Tumalo Irrigation District 15 16 Dated: MARK G. R MNECKE 17 Attorney for Petitioner Tumalo Irrigation District 18 19 /) Dated: `� l 20 NICOLED FEVER # 030929 nior Assistan Attorney General 21 for espondent Orego Water Re ounces Department 22 igned: 2/12/2018 03:28 PM 23 24 25 Circuit Court Judge Wells B. Ashby 26 Page 5 - STIPULATED GENERAL JUDGMENT BEFORE THE OREGON WATER RESOURCES DEPARTMENT In the Matter of the Tumalo Irrigation ) ORDER ON RECONSIDERATION District. ) APPEAL RIGHTS This is a final order in other than a contested case. This order is subject to judicial review under ORS 183.484. Any petition for judicial review must be filed within the 60 -day time period specified in ORS 183.484(2), Pursuant to ORS 536.075 and OAR 137-004-0080 you may either petition for judicial review or petition the Director for reconsideration of this order. A petition for reconsideration may be granted or denied by the Director, and if no action is taken within 60 days following the date, the petition was filed, the petition shall be deemed denied. DISPOSITION This order on reconsideration affirms the Oregon Water Resources Department's Enforcement Order of June 16, 2015 finding that the Tumalo Irrigation District (TID) lacks authorization to store water in the North and South ponds, The order finds that after April 30, 2015, the TID knew or should have known that it did not have authority to fill the ponds pursuant to either T -I 1833 or T-11951. Therefore, the Department may not find that the TID did not knowingly violate state laws regarding a water use permit. This order reverses the Department's decision to allow a Limited License in Conjunction with Enforcement Order and cancels the Limited License in Conjunction with Enforcement Order, AUTHORITY Enforcement Authority No person may appropriate water for beneficial use without first obtaining a permit from the Oregon Water Resources Department (Department). ORS 537.130 et seq.; ORS 540,720. The Water Resources Director acting through watermasters, regulates distribution of water from streams, lakes, or other sources in accordance with the priority dates of the various water rights of record. QRS 540.010 — 270. Unauthorized use of water may be regulated off by the watermaster who may take control of works in order to execute the water laws of this state. Id. Distribution of water within an irrigation district shall be under the exclusive control of the directors of the irrigation district unless the watermaster has been requested by the district to distribute the water. ORS 540.270. Notwithstanding, the watermaster may control district points of diversion and irrigation works outside of an irrigation district, that are appropriating public waters and may issue enforcement orders requiring unauthorized use of water to cease. PAGE I - ORDER ON RECONSIDERATION (Tumalo Irrigation District) Exhibit 1 Page 1 of 5 Limited License in Conjunction with Enforcement Order The Water Resources Director may issue a limited license in conjunction with an enforcement order to address an illegal water use, including irrigation use or a use specifically prohibited by a basin program. The director may issue a limited license for such a use upon a finding that: (a) The person did not knowingly violate state laws regarding a water use permit; (b) The immediate termination of the illegal use would cause serious and undue hardship to the water user that could be ameliorated by providing a period of time in which to achieve compliance with the law; and (c) The continued use under a limited license outweighs the public benefits of termination, including deterrence of illegal uses and protection of the water source. ORS 537.143(4) FINDINGS OF FACT 1. Two ponds are located within the Tumalo Irrigation District (TID) on property owned by the KC Development Group (KCDG). The KCDG property is located in Section 13 Township 17 South, Range I 1 East. The ponds are excavated and without dams and are commonly referred to as the "South Pond" and the "North Pond". The South Pond is filled by diverting water from Tumalo Creek or the Deschutes River into the South Pond. Water from the South Pond is passed through an outlet at the north end of the South Pond and is the sole means of filling the North Pond with water. Up to 14.4 acre feet of water may be lawfully used as a bulge for irrigation in the North Pond pursuant to water right certificates 74146 and 74147. 2. On June 11, 2014, the TID filed a Temporary Transfer Within District application pursuant to ORS 540.570 proposing to change the place of use of a portion of Certificate 76684. The Department assigned the application number T-11833. The TID proposed to temporarily transfer 108 acre feet of water stored under Certificate 76684 in the Upper Tumalo Reservoir to change the location of water stored to the North Pond and the South Pond. This application was denied by the Department in a final order dated April 29, 2015. This order was served on TID on April 30, 2015. 3. On September 25, 2014, TID filed with the Department a notice of intent pursuant to ORS 540.580 to permanently transfer a portion of water stored under Certificate 76684 to the North and South ponds. Subsequently, the TID filled the North Pond and the South Pond with water that would otherwise have been stored in Upper Tumalo Reservoir. 4. On December 22, 2014, TID filed an application for a District Permanent Water Right Transfer for a Change in Place of Use. The Department assigned the application number T- 11951. The TID proposed to permanently transfer 124.79 acre feet of water stored under Certificate 76684 in the Upper Tumalo Reservoir to change the location of water stored to the North Pond and the South Pond. The application was denied by the Department in a final order dated April 29, 2015. This order was served on TID on April 30, 2015. PAGE 2 —ORDER ON RECONSIDERATION (Tumalo Irrigation District) Exhibit 1 Page 2 of 5 5. The TID believed it was authorized to transfer water from the Upper Tumalo Reservoir to the North pond and the South Pond when it filled the ponds under ORS 540.580. However, after April 30, 2015, the TID knew or should have known that it did not have authority to fill the ponds pursuant to either T-11833 or T-11951. 6. On the morning of June 3, 2015, and after obtaining consent to enter KC Development Property, Watermaster Jeremy Giffin and Region Manager Kyle Gorman entered property owned by KCDG and observed water being diverted through TID diversions located on Tumalo Creek into the South Pond. The source of water diverted was either Tumalo Creek or the Deschutes River where it intersects the Tumalo Feed Canal. The water in the South Pond was being stored without any authorization from the Water Resources Department. On June 3, 2015, Gorman and Giffin observed that the water in the North Pond contained approximately 35 more acre feet than is authorized as a bulge to irrigate 55 acres of land within the TID. This conclusion was arrived at by calculating the approximate number of acre feet being stored in the North Pond (50 acre feet) and subtracting 14.4 acre feet of water allowed as a bulge. The difference between the estimated amount of water stored in the North Pond minus that allowed as a bulge equaled approximately 35.6 acre feet. 7. On June 9, 2015 at about 0800, Giffin, after obtaining permission from TID to observe the South Pond from TID property observed and measured 0.73 cubic feet per second (CFS) of water flowing into the South Pond from the TID diversion on Tumalo Creek. Giffin did not observe the North Pond on June 9, 2015. ULTIMATE FINDINGS OF FACT I . Between June 3, 2015 and June 9, 2015, TID unlawfully diverted water from Tumalo Creek to fill the South Pond. 2. After April 30, 2015, the TID knew or should have known that it did not have authorization to fill the South Pond or the North Pond pursuant to either T-11833 or T-11951 and therefore had no authority to divert water into the South Pond from the TID diversion on Tumalo Creek. CONCLUSIONS OF LAW 1. The diversion of water for storage in the South Pond is unauthorized and storage of water in the North Pond beyond that amount needed to serve as a bulge for irrigation of 55 acres pursuant to water right 74146 and 74147 is unauthorized. 2. A limited license in conjunction with enforcement order is not permitted. ORS 537.143(4)(a). PAGE 3 — ORDER ON RECONSIDERATION (Tumalo Irrigation District) Exhibit 1 Page 3 of 5 [0 R 1 Water is not lawfully stored in the South Pond. Water is only lawfully stored in the North Pond as that water is used for stock water purposes or as a bulge during the irrigation season. The TID may not divert any water from its diversions on Tumalo Creek or the Deschutes River to fill and store water in the South Pond or the North Pond, except that the TID may divert water for stock water purposes. During the irrigation season TID may divert water for use in the North Pond as a bulge for up to 14.4 acre feet to irrigate 55 acres of land within the TID. The Limited License in Conjunction with Enforcement Order is canceled and is of no further force and effect. DATED this 23rd day of November, 2015. THOMAS NAUVUftR, Director Oregon Water Resources Department PAGE 4 — ORDER ON RECONSIDERATION (Tumalo Irrigation District) Exhibit 1 Page 4 of 5 CERTIFICATE OF SERVICE I certify that on November 23, 2015, I served a true and correct copy of the ORDER ON RECONSIDERATION on the following persons by first class mail postage prepaid: Martha Pagel Schwabe Williamson & Wyatt Equitable Center 530 Center St., NE, Ste. 400 Salem, OR 97301 Carl Hopp, Jr. Attorney at Law, LLC 168 N.W. Greenwood Bend, OR 97701 Elizabeth A. Dickson Hurley Re PC 747 SW Mill View Way Bend, OR 97702 Janet E. Neuman Tonkon Torp LLP 1600 Pioneer Tower 888 SW Fifth Ave. Portland, OR 97204 Lorri Cooper Oregon Department of Water Resources Exhibit 1 Page 5 of 5 I CERTIFICATE OF READINESS 2 This proposed STIPULATED GENERAL JUDGMENT is ready for judicial signature 3 because: 4 1. [ X ] Each party affected by this order or judgment has stipulated to the order or 5 judgment, as shown by each opposing party's signature on the document being submitted. 6 2. [ ] Each party affected by this order or judgment has approved the order or judgment, 7 as shown by each party's signature on the document being submitted or by written confirmation 8 of approval sent to me. 9 3. [ ] 1 have served a copy of this order or judgment on each party entitled to service 10 and: 11 a. [ J No objection has been served on me. 12 b. [ ] I received objections that I could not resolve with a party despite 13 reasonable efforts to do so. I have filed a copy of the objections I received and indicated which 14 objections remain unresolved. 15 C. [ ] After conferring about objections, [role and name of objecting party] 16 agreed to independently file any remaining objection. 17 4. [ ] Service is not required pursuant to subsection (3) of this rule, or by statute, rule, 18 or otherwise. 19 5. [ ] This is a proposed judgment that includes an award of punitive damages and 20 notice has been served on the Director of the Crime Victims' Assistance Section as required by 21 subsection (5) of this rule. 22 6. [ ] Other: 23 DATED this 9 day of February, 2018. 25 26 s/J. Nicole DeFever J. NICOLE DEFEVER #030929 Senior Assistant Attorney General Trial Attorney Nicole.DeFever@doj.state.or.us Attorneys for Respondent Page 1 - CERTIFICATE OF READINESS JND/j8b/8761205-v1 Department of Justice 100 SW Market Street Portland, OR 97201 (971) 673-1880 / Fax: (971) 673-5000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 CERTIFICATE OF SERVICE I certify that on February 9 , 2018, I served the foregoing STIPULATED GENERAL JUDGMENT upon the parties hereto by the method indicated below, and addressed to the following: Martha Pagel Schwabe Williamson & Wyatt PC 530 Center St NE Ste 400 Salem, OR 97301 Of Attorneys for Petitioner Elizabeth E. Howard Schwabe Williamson & Wyatt PC Pacwest Center 1211 SW 5th Ave Ste 1900 Portland, OR 97204 Of Attorneys for Petitioner Mark G. Reinecke Bryant, Lovlien & Jarvis, P.C. 591 SW Mill View Way Bend, OR 97702 Of Attorneys for Petitioner Page 1 - CERTIFICATE OF SERVICE 7ND/c4m/7122764-v 1 _ HAND DELIVERY X MAIL DELIVERY OVERNIGHT MAIL SERVED BY E -FILING _ HAND DELIVERY X MAIL DELIVERY OVERNIGHT MAIL SERVED BY E -FILING _ HAND DELIVERY X MAIL DELIVERY _ OVERNIGHT MAIL SERVED BY E -FILING s/J. Nicole DeFever J. NICOLE DEFEVER #030929 Senior Assistant Attorney General Trial Attorney Nicole.DeFever@doj.state.or.us Department of Justice 100 SW Market Street Portland, OR 97201 (971) 673-1880 / Pax: (971) 673-5000 Page 1 IN THE CIRCUIT COURT OF THE STATE OF OREGON FOR THE COUNTY OF DESCHUTES TUMALO IRRIGATION DISTRICT, ) Petitioner, ) V. ) Case No. 16CV01703 OREGON WATER RESOURCES ) DEPARTMENT, ) Respondent. ) DEPOSITION OF KYLE GORMAN Taken on Behalf of the Petitioner Friday, November 3, 2017 EXHIBIT B Gorman, Kyle November 3, 2017 Beovich Walter & Friend Page 2 1 BE IT REMEMBERED That, pursuant to the Oregon 2 Rules of Civil Procedure, the deposition of KYLE 3 GORMAN was taken before Heather Ashton, RPR, CSR, on 4 Friday, November 3, 2017, commencing at the hour of 5 8:16 a.m., the proceedings being reported at the 6 Justice Building, 1162 Court Street, NE, Salem, 7 Oregon. 8 APPEARANCES 9 SCHWABE WILLIAMSON & WYATT PC 10 By Ms. Sara C. Cotton, Esq. 11 1211 SW 5th Avenue, Suite 1900 12 Portland, Oregon 97204 13 (503) 796-7464 14 scotton@schwabe.com 15 Appearing on behalf of the Petitioner 16 17 BRYANT LOVLIEN & JARVIS 18 By Mark G. Reinecke, Esq. 19 591 SW Mill View Way 20 Bend, Oregon 97702 21 (541) 382-4331 22 reinecke@bljlawyers.com 23 Appearing on behalf of the Petitioner 24 25 Beovich Walter & Friend Gorman, Kyle November 3, 2017 Page 3 1 APPEARANCES (continued) 2 OREGON DEPARTMENT OF JUSTICE - TRIAL DIVISION 3 By J. Nicole DeFever 4 100 SW Market Street 5 Portland, Oregon 97201-5702 6 (971) 673-1880 7 j nicole.defever@doj.state.or.us 8 Appearing on behalf of the Respondent 9 10 ALSO PRESENT: Ivan Gall 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Beovich Walter & Friend Gorman, Kyle November 3, 2017 Beovich Walter & Friend Page 27 1 A Well, irrigation districts, yes, in general, OWRD 2 does not regulate within the boundaries of the 3 district. 4 Q Okay. Do you have an understanding of how OWRD 5 defines "beneficial use"? 6 A I don't know that we have a definition of beneficial 7 use. 8 Q Have you seen one written down anywhere? 9 A No, not that I recall. 10 Q Do you have an understanding of what beneficial use 11 is? 12 A Absolutely. 13 Q Okay. What is beneficial use? 14 A What is beneficial use? It is when you're applying 15 water for a purpose or a need that produces a 16 benefit to a person. 17 Q Is storage a beneficial use? 18 A I believe the act of storing water is a -- it's a 19 legal right to use water. 20 Q So is it a beneficial use? 21 A In my mind it is, yes. 22 Q Is it common for irrigation water to be delivered to 23 a pond before being used for irrigation? 24 A Yes. 25 Q Okay. Do you know how efficient the TID's delivery Beovich Walter & Friend Gorman, Kyle November 3, 2017 Beovich Walter & Friend Page 28 1 system is? 2 A In general I do. 3 Q Okay. How efficient is it? 4 A In the comprehensive look at irrigation district 5 delivery systems in Central Oregon in comparison to 6 other districts, they are as good, if not better, 7 than other districts. 8 Q Okay. Do you know how efficient the private 9 laterals in the TID are? 10 A No. 11 Q Okay. Do you know how the ponds compare in 12 efficiency? 13 A The KCDG ponds -- 14 Q Yes. 15 A -- in efficiency? I know they're lined, so they 16 don't seep. 17 Q Okay. Is evaporation considered waste? 18 MS. DeFEVER: In your opinion. 19 THE WITNESS: In my opinion, evaporation is -- 20 it just happens. It's not characterized as waste in 21 water rights. 22 Q BY MS. COTTON: And do you know whether OWRD has a 23 stated opinion on whether evaporation is waste? 24 A No, I do not. 25 Q I think we covered this, but I want to make sure. Beovich Walter & Friend Gorman, Kyle November 3, 2017 17 18 19 20 21 22 23 24 25 - (X"- II&07_r2 Heather Ashton RPR Certificate No. 801810 Expires 09/30/19 Oregon CSR No. 92-0246 Washington CRR No. 2929 Expires 3/31/2020 Beovich Walter & Friend Page 71 1 C E R T I F I C A T E 2 I, Heather Ashton, an Oregon Shorthand Reporter 3 and a Washington Certified Court Reporter, hereby 4 certify that said witness personally appeared before 5 me at the time and place set forth in the caption 6 hereof; that the witness was duly sworn on oath, 7 that at said time and place I reported in stenotype 8 all testimony adduced and other oral proceedings had 9 in the foregoing matter; that thereafter my notes 10 were transcribed through computer-aided 11 transcription, under my direction; and that the 12 foregoing pages constitute a full, true and accurate 13 record of all such testimony adduced and oral 14 proceedings had, and of the whole thereof. 15 Witness my hand at Portland, Oregon, this 9th 16 day of November 2017. 17 18 19 20 21 22 23 24 25 - (X"- II&07_r2 Heather Ashton RPR Certificate No. 801810 Expires 09/30/19 Oregon CSR No. 92-0246 Washington CRR No. 2929 Expires 3/31/2020 Beovich Walter & Friend Gorman, Kyle IN THE CIRCUIT COURT OF THE STATE OF OREGON FOR THE COUNTY OF DESCHUTES TUMALO IRRIGATION DISTRICT, ) Petitioner, AM OREGON WATER RESOURCES DEPARTMENT, Respondent. Case No. 16CV01703 DEPOSITION OF KYLE GORMAN Taken on Behalf of the Petitioner Friday, November 3, 2017 Beovich Walter & Friend November 3, 2017 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 IN THE CIRCUIT COURT OF THE STATE OF OREGON FOR THE COUNTY OF DESCHUTES TUMALO IRRIGATION DISTRICT, Plaintiff, vs. OREGON WATER RESOURCES DEPARTMENT, Defendant. ---------------------- Case No. 16CV01703 11 DEPOSITION OF JEREMY GIFFIN commencing at 9:50 a.m. on Tuesday, October 24, 2017, at 591 S.W. Mill view Way, Bend, Oregon 97702, before COURTNEY M. MOON, Notary Public, Commission No. 954212. CASCADE COURT REPORTERS, INC. (541)385-5664 EXHIBIT C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 For Plaintiff: For Defendant: Also present: IVAN GALL KEN RIECK APPEARANCES OF COUNSEL SARA C. COTTON, ESQ. ELIZABETH E. HOWARD, ESQ. Schwabe Williamson & Wyatt PC 1211 S.W. 5th Avenue, Suite 1900 Portland, Oregon 97204 and MARK G. REINECKE, ESQ. Bryant Lovl-ien & Jarvis PC 591 S.W. Mill view Way Bend, Oregon 97702 J. NICOLE DeFEVER, ESQ. Oregon Department of Justice Trial Division 100 S.W. Market Street Portland, Oregon 97201 CASCADE COURT REPORTERS, INC. (541)385-5664 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 gravity -fed to the North Pond and they pumped out of the North Pond. Q. were you aware that KCDG was withdrawing water delivered to the South Pond from the North Pond for irrigation? A. Yes. Q. okay. Did you consider that proper? A. Yes. MS. DeFEVER: objection. when? Lack of foundation as to time. MS. COTTON: He's already answered the question, but I think that we're talking about following the submission of the temporary application. I was asking if he was aware if they were -- if TID was delivering irrigation water and whether he thought it was proper. THE WITNESS: Yes. BY MS. COTTON: Q. okay. we've already talked about this a little bit, but to what extent does OWRD manage water deliveries within an irrigation district? A. we still regulate against waste, but the lion's share of the regulation we do within the district is illegal use of putting water either on the wrong location or in a location -- either an illegal use, there's no water right there, or diverting too much CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 91 water at a single delivery for the rate given in the water right. Q. And is that consistent with TID specifically or Tumalo? A. All districts are basically the same with that. Q. is it common for irrigation water to be delivered to a pond before being used for irrigation? A. Yes. Q. okay. How efficient is the Tumalo Irrigation District's delivery system? A. It's -- I haven't run numbers on it. I guess you're just asking for my opinion. Q. Yeah. A. I would say there -- they probably fall in the middle of the group of the central Oregon irrigation systems. I think since their piping project, they're much more efficient. Yeah, I'd say they're in the middle of the pack. Q. And you had mentioned that you regulate against waste. Can you define "waste" for me? A. when the diversion of water is above what the crop requirements are. Q. is evaporation considered waste? A. I don't consider it waste. CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 E Q. Does OWRD have a stated position on whether or not evaporation is waste? A. Not that I'm aware of. Q. Do you have an opinion on how efficient the private laterals in the TID -- in TID are? A. From what I've seen, they fall, again, probably in the middle of the road. They're probably more efficient than COI, but less efficient than North unit. I'd say they're right in the middle of the road. Q. what about the ponds? How do they compare for efficiency, if you know? A. I think they're highly efficient due to the lining. Q. I want to move forward in time. we've been discussing sort of a time period in 2014 in which TID had petitioned for both a permanent and a temporary transfer. Right? I want to move forward. is it your understanding that OWRD eventually denied both applications? A. I'm not sure the exact process. I -- they were either unwound or denied. Q. Did you anticipate -- let me give you a time frame. In 2014 when you were working with KCDG and TID on options that they might have, did you anticipate at that time that the transfer applications would be CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 93 approved? A. I did. Q. And why? A. After vetting internally, we didn't see a cause for injury, enlargement concerns. It would have been hard for an outside protest to prove -- I felt would have been hard for an outside entity to prove injury to their water rights due to the transaction. Yeah, I had no reason to believe that they wouldn't go through. Q. Do you recall when -- or I should say did you at some point in time come to believe that they were not going to be approved? A. No. MS. COTTON: You say no. Let's look at an exhibit. Take a quick break. (Brief recess.) MS. COTTON: Can you read back the last question and answer? (Requested portion of record read.) BY MS. COTTON: Q. Did you have knowledge of the Department's eventual decision on the applications in April of 2015? A. I was in most of what I believe were the e-mail chains of what was going on. I was starting to CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 remove myself from the situation and hand it over to the enforcement department, so I was in the loop; however, I was basically being told what to do, go see if water is going into the pond, I would check. I would leave everything, the decision-making process, up to the enforcement department. Q. Okay. So I guess the question previously was that whether or not at some point you begin to understand that these applications were not going to be approved by the Department. I believe you said no. A. Yes. Q. It sounds like you were in e-mail traffic that maybe gave you an indication that they weren't going to be approved; is that fair? A. well, at the point of the transfers being turned in, I -- all along up'until the enforcement department started issuing denials on things or whatever, I really was removing myself from the process at that point. I had -- I mean, I'm still the regulatory arm on the ground, but most of the actions that were dealing with this were being handled in Salem at that point. Q. okay. And do you know -- recall who was handling it? A. I think it was a combination of Doug woodcock CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 95 with the State attorneys at that point. I think my manager, Kyle Gorman, would have been in those discussions and Kyle was relaying information on to me as needed for field visits or such. (whereupon Deposition Exhibit 45 marked for identification.) BY MS. COTTON: Q. You've been handed what's been marked as Exhibit 45 and this is entitled "Final order Denying a Change to water Right Certificate 76684." Do you recognize this? A. No. Q. Do you ever recall receiving this? A. I don't recall receiving it. My office receives all the correspondence, so I'm sure in one form or another, it made its way to our office, but I do not recall seeing this document before. Q. It says, "In the Matter of Transfer Application T-11951." Is that the permanent transfer application that we looked at in Exhibit 8, I believe? A. I believe so because the temporary was a different number, but we don't seem to stamp the transfer numbers on the applications, only the subsequent paperwork so -- Q. Right, right. I can represent to you that CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that number corresponds with the permanent transfer application. And do you know when this final order denying a change to water right certificate came down? A. I do not. Q. Do you recall being made aware that this determination denying the transfer application was made? A. Yes. It was brought to my attention, I believe, by Kyle Gorman. Q. Do you recall when it was brought to your attention? A. I do not. Q. Do you recall how it was brought to your attention? A. I do not. Q. okay. were you surprised that the transfer application was denied? A. I was. Q. I'd like you to turn to page 3 of Exhibit 45. Do you see where it says, "Transfer Review Criteria"? A. um -hum, yes. Q. And I should say just as a foundational question, are you familiar with orders of this kind? A. I am. Q. Okay. Are you familiar with transfer review CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 97 criteria? A. It's not something I commonly see in transfer orders. Q. what do you commonly see in transfer orders? A. well, I read through transfer orders on a daily basis and I see the originating right, the proposed changes and then conditions and findings of fact. Q. So this transfer review criteria is unique to you? A. it looks a little unique. Q. okay. Do you see No. 7 there under "Transfer Review Criteria" where it says, "Certificate 76684 does not meet the definition of a water use subject to transfer as defined in 540.505(4)"? A. um -hum, yes. Q. And then, "Storage water for multiple purposes is not, in and of itself, a beneficial use absent specific legislation declaring it is beneficial." I understand you don't recall seeing this order, but does that language, is that your understanding of the Department's view on beneficial use? A. That is my understanding of -- yes. Q. And would that be the new interpretation of beneficial use? CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 M A. Yes. Q. okay. Do you understand what the basis of the denial of the permanent and temporary application was? A. I do after reading this. Q. what's your understanding of the basis of those denials? A. well, it appears that the Department denied it on not being a water right subject to transfer. It did not have the appropriate land use form. Apparently, the person who did the order felt as if the place of use that the water right was being removed from was not going to be severed. And No. 10, I just don't understand. MS. DeFEVER: I'm just -- I'll just note for the record that this doesn't appear to be the signed final order. MS. COTTON: This appears to be a draft, so I'm going to get the final order when we go over that, but for purposes of moving things along, I'm going to move along and we'll come back to it. BY MS. COTTON: Q. So for our purposes, you were aware at some point that there was a denial of the permanent and temporary transfer applications. And following that, did you give any direction to TID regarding the water CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that was currently in the ponds when the transfers were denied? A. I'm a little unsure of the time frame, but I know that I was sent out to the site to meet with Harris Kimble on a couple occasions to make sure that the ponds did not store additional water. Q. And when you say, "Sent out to the site," who sent you out to the site? A. it was Doug woodcock. Q. Did you receive that direction directly from him? A. Yes and no. Yes, I did on occasion; however, other occasions, Kyle Gorman, my manager, sent me out on request of Doug. Q. How many visits do you think you made following the denial of the transfers? A. I would say, roughly, three to seven. Q. I said following the denial of the transfers. I want to limit that a little bit more. was there eventually an LLEO issued with respect to the ponds? A. Yes. Q. okay. And that LLEO was issued June 16th, 2015, so I want to know how many field visits in between the denial on April 30th, 2015, and the issuance of the LLEO on tune 16th, 2015. Do you think you made three to CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 me seven during that time frame or was that inclusive of following the LLEO? A. I wouldn't know between those time frames. I don't know. Q. okay. would you have kept a log of your site visits to the KCDG property? A. Generally, yes. I've been known to miss some regulations in my log. I do a number of regulations throughout the season, but generally, those would show up in my online diary. Q. And I asked whether or not you gave any direction to TID regarding the water in the ponds and I think we got a little turned. Did you ever give them any direction on evacuating the ponds? A. we had talked about the physical capabilities of evacuating the ponds. I don't believe -- I do not recall ever giving an order to evacuate the ponds. we talked about the potential of evacuating the ponds and we talked about not storing additional water in the ponds from where we were already at. My understanding at the time was we did have a temporary transfer that was legal when it was put into place, water was put into those ponds, and thereafter, water was passed over the top of that water as their normal, legal diversion rate. Q. For irrigation? CASCADE COURT REPORTERS, INC. (541)385-5664 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 161 C E R T I F I C A T E STATE OF OREGON COUNTY OF DESCHUTES certify: SS. I, COURTNEY M. MOON, Notary Public, do hereby That on October 24, 2017, at 9:50 a.m., appeared before me JEREMY GIFFIN, the witness whose deposition is contained herein; that prior to being examined, he was by me duly sworn; That the deposition was taken down by me in machine shorthand and was thereafter reduced to writing through computer-aided transcription; that the foregoing represents, to the best of my ability, a true and correct transcript of the proceedings had in the foregoing matter. I further certify that I am not an attorney for any of the parties hereto, nor in any way concerned with the cause. DATED this 1st day of November, 2017, in Bend, Oregon. COURTNEY M. MOON, Notary Public -Oregon Commission No. 954212 Expires September 8, 2020 CASCADE COURT REPORTERS, INC. (541)385-5664 LIZ FANCHEIR, ArrO2NEY Liz Fancher Sue Stinson, Paralegal April 12, 2018 BOARD OF COMMISSIONERS DESCHUTES COUNTY 1300 NW WALL STREET BEND, OR 97703 Re: KCDG, LLC/Tanager Appeals, Files 247 -17 -000627 -CU, 629 -PA, 636 -CU, 640 - SP and 641 -LM I am writing to present KCDG, LCC's view of the preemption argument relied on by the hearings officer in the KCDG and Tanager decisions to deny approval of the recreation oriented facility and TID's proposed use of the North and South Ponds as storage reservoirs. The hearing officer said that the County cannot apply the definition of "surface mining" in its acknowledged land use regulations to decide this case. Instead, she found that the County must use the definition of surface mining that applies to DOGAMI's operating permit and surface mining program. This interpretation is legally incorrect and problematic for governmental entities and property owners in Deschutes County. The County's definition of surface mining exempts mining required as "on-site construction" to establish the uses allowed by the County's zoning districts. This allows an approved development project to proceed without obtaining a separate County approval to do the earthwork necessary to construct a County approved or allowed project. The hearings officer wrote this exemption out of the County's code and determined that uses that involve surface mining are now prohibited. The only exception is mining in conjunction with an irrigation district. No law says that the County cannot apply the definitions in its acknowledged land use rules to decide a land use application. In fact, the law requires that land use laws — not definitions applicable to DOGAMI — be applied to decide the KCDG and Tanager application. Opponents have argued that a property owner should be required to rezone their property Surface Mining if a proposed use involves mining. This approach, however, is doomed to failure. The SM zone prohibits almost any use other than surface mining. If KCDG were to rezone its property SM and seek approval of mining associated with its pond, the County would deny its application because recreation oriented facilities and farm ponds are not allowed in the SM zone. 644 NW BROADWAY STREET BEND, OREGON • 97703 PHONE: 541-385-3067 FAX: 541-385-3076 -2- April 12, 2018 The land uses that might be impacted by this ruling are numerous and are listed on Exhibit A. These include the excavation of new ponds and lakes to hold treated effluent such as the ponds that serve Sunriver, Sisters, Bend and Redmond. It would also prohibit a new County landfill because new landfills are not allowed in the SM zone and could not be built in any other zoning district because it involves surface mining unless the on-site construction exception applies. The following legal analysis explains why the hearings officer's decision is not correct. In general, the Hearings Officer failed to understand that State law preempts a County's regulation of surface mine reclamation and issuance of operating permits. It does not preempt the County's land use regulations of surface mining because they do not seek to issue operating permits or to approve reclamation plans. Hearings Officer: There is no authority in the Code that allows for private surface mining in the RR -10 zone. Response: Private surface mining is allowed in the RR -10 zone when it is required for the on-site construction of a use permitted outright or conditionally because the County's definition of "surface mining" excludes mining for on-site construction from the definition of "surface mining." The Board of Commissioners determined in its decision in File Nos. 247 -14 -000238 -PS/ -0000274-A that the construction of the south pond for water skiing was allowed as a conditional use in the RR -10 zone; not that the use was prohibited because it required surface mining prohibited by the County code. Hearings Officer: DCC 18.040.030 defines "surface mining" as: B. Does not include: 2. Excavation and crushing of sand, gravel, clay, rock or other similar materials conducted by a landowner, contractor or tenant on the landowner's property for the primary purpose of * * * "other on-site construction... " * * * The County exemption for surface mining Linder its definition, set forth above, is inapplicable for three independent reasons: (1) the Board of County Commissioners has already determined in land use file number 247 -14 -000238 -PS that the creation of the reservoirs should be characterized as surface mining in conjunction with an irrigation district requiring a conditional use permit; Response: This finding is inconsistent with the Hearings Officer's decision that mining to create the ponds was not surface mining in conjunction with an irrigation district. Only if the mining was conducted in conjunction with an irrigation district is it "surface mining." Otherwise, the Board's decision in File 247 -14 -000238 -PS makes it clear that the mining to create the ponds was "other on-site construction" that is not "surface mining." -3— April 12, 2018 Hearings Officer: (2) the excavation and rock crushing performed by the applicant was not for the primary purpose of construction, reconstruction or maintenance of access roads, regardless of the fact that some material was used on an access road; Response: KCDG agrees. The primary purpose of the excavation was to create two ponds for recreational purposes. The secondary purposes of the excavation were to maintain access roads, create ponds for the storage of TID irrigation water and to create ponds for aquaculture. Hearings Officer: the county's definition of surface mining is preempted by state law tender ORS 517.780(1).1 * * * [T]he hearings officer cannot rely on the county's definition of surface mining which impermissibly conflicts with the states definition in this regard [because it exempts on-site construction]. State law is controlling. Response: According to ORS 517.780(1), State law controls the issuance of operating permits and mine reclamation.2 It does not control or preempt the content of the County's zoning ordinance on other issues. This means that Deschutes County may not issue operating permits and may not regulate reclamation. It does not mean that Deschutes County must use DOGAMI's definition of "surface mining" rather than the definition in its acknowledged land use regulations. 1 517.780 Effect on county zoning laws or ordinances; rules; certain operations exempt. (1)(a) The provisions of ORS 517.702 to 517.989 and the rules and regulations adopted thereunder do not supersede any county zoning laws or ordinances in effect on July 1, 1972. However, if the county zoning laws or ordinances are repealed on or after July 1, 1972, the provisions of ORS 517.702 to 517.989 and the rules and regulations adopted thereunder are controlling. The governing board of the State Department of Geology and Mineral Industries may adopt rules and regulations with respect to matters covered by county zoning laws and ordinances in effect on July 1, 1972. (b) If the county zoning laws or ordinances specified in paragraph (a) of this subsection are repealed by a county: (A) The department may allow a surface mining operation that previously operated under a valid county operating permit and reclamation plan to continue to operate for a period not to exceed one year if the landowner or operator applies for an operating permit under ORS 517.790 within 60 days after the date the county's repeal of the zoning laws or ordinances becomes effective, pays all applicable fees to the department and submits a bond or security to the department as required by ORS 517.810. Pending issuance of an operating permit and approval of a reclamation plan by the department, the county permit is deemed to remain in effect and is enforceable by the department. (B) The department, in issuing a permit and approving a reclamation plan for a surface mining operation that previously operated under a valid county operating permit as described in paragraph (a) of this subsection, may incorporate any provisions from the county operating permit into the permit issued by the department and the reclamation plan approved by the department if the department determines that the provisions provide adequate protection of the public health, safety and welfare and the environment. (C) The department may issue a certificate of exemption from reclamation requirements as described in ORS 517.770 (1)(b). 2 See, Exhibit B, Minutes of Joint Ways and Means Committee of the Oregon Legislature, June 3, 1971 re House Bill 3013 that included the law that became ORS 517.780(1)(IIB 3013 requires operating permits and reclamation plans to be approved by :DOGAMI). -4- April 12, 2018 Deschutes County is granted full authority by the State's land use laws to regulate all other aspects of surface mining. This is clear from a long line of cases that acknowledge that local governments have the authority to regulate where mining will occur and to require site plan review of surface mining operations. See, Mark Latham Excavation, Inc. v. Deschutes County, 250 Or App 543, 281 P3d 644 (2012); Eugene Sand & Gravel a Lane County, 189 Or App 21, 74 P3d 1085 (2003). Likewise, the County may allow mining needed to establish the uses allowed by its zoning ordinance without subjecting the uses to a separate review as "surface mining." Deschutes County has done so by exempting on site construction from the definition of surface mining. It could do the same thing by specifically listing "surface mining related to permitted and conditional uses" as an allowed use in each zoning district. As a result, it is clear that this is a form over substance argument of no real merit. Hearings Officer: Simply, a private property owner cannot undertake surface mining activities in the RR -10 zone. Response: This conclusion, if accepted by the Board, will mean that any use in any zoning district that involves private surface mining be prohibited because private surface mining is only listed as a permissible use in the SM zoning district. Opponents argue that a property must be rezoned SM if the construction of a use allowed by the zone involve enough earthwork to constitute surface mining in order to permit earthwork. This would, however, be a pointless exercise because the SM zone prohibits almost all uses allowed in other zoning districts. If KCDG's property is rezoned Surface Mining (SM), opponents will surely argue that a recreation oriented facility is prohibited by the SM zone and cannot be approved. This hearings officer's interpretation will likely have a major, negative impact on many property owners and will prevent property owners from proceeding with uses the County intends to allow. A list of uses that will be prohibited if they may involve enough earthwork to constitute "surface mining" is included as Exhibit B of this document. Additional Consideration: ORS 517.780(1) preempts any law that conflicts with DOGAMI's surface mining rules. If this law preempts the definition used by Deschutes County to regulate surface mining, it logically follows that ORS 517.780(1) also preempts all of the County's land use laws regulating surface mining. If so, surface mining would be allowed in any zone if allowed by DOGAMI under the State law. Thank you for your consideration of this issue. Sincerel , Liz Fan Attorney for KCDG, LLC EXHIBIT A Zone Uses Prohibited if Involve "Surface Mining" As Part of On -Site Construction MUA Operation, maintenance and piping of irrigation systems Public Use Dude Ranch Kennel/vet clinic Private parks, playgrounds, campgrounds, motorcycle track and other recreational uses Personal use airstrip Golf courses Processing forest products Destination resorts Landfills with DEQ OK Hydroelectric facility Churches Schools Cemetery Guest lodge OS&C Private parks Public parks Utility facilities Water supply and treatment facility Campground RR -10 Utility facilities (energy, water, sewage disposal) Operation, maintenance and piping of existing irrigation systems Public park, playground, rec facility Dude ranch Personal use landing strip Recreation -oriented facility requiring large acreage Landfill Cemetery Hydroelectric facility Golf course Church Public uses Schools Rural Road project Service Operation, maintenance and piping of irrigation systems Centers Park or playground Church School Cemetery Medical/veterinary clinic Community center Manufactured home park RV or trailer park Page 1 — Chart of Uses that May Involve "Surface Mining" EXHIBIT A Terrebonne Rural Community Manufactured home park Multi -family dwelling complex Retirement center or nursing home Church Childcare center Schools Park Public buildings Utility facilities Water supply or treatment facility Road and street projects Operation, maintenance and piping of existing irrigation systems Motel (to 35 units with community sewer) RV park Large scale uses Tumalo Multi -family dwelling complex Rural Retirement center or nursing home Community Church Childcare center Schools Park Public buildings Utility facilities Water supply or treatment facility Road and street projects Operation, maintenance and piping of existing irrigation systems Motel (to 35 units with community sewer) RV park Large scale uses Manufacturing/assembly of electronic and precision instruments Manufacturing of medicines Manufacturing research project Equipment storage for and expansion/replacement of industrial uses existing in 1994 Primary processing, packaging, treatment, storage and distribution of agricultural products, horticultural products, wood products and sand, gravel, clay and minerals. Freight deport Contractor's/building materials business Mini -storage facility Manufacturing, storage, sales, rental, repair and servicing for farm and forest uses, road maintenance, mineral extraction and other rural activities. Concrete or ready mix plants Rural Utility facilities Commercial Recreational vehicle park Zone School Page 2 — Chart of Uses that May Involve "Surface Mining" EXHIBIT A Page 3 — Chart of Uses that May Involve "Surface Mining" Church Mini -storage Park/playground Airport Road construction Development Operation, maintenance and piping of existing irrigation systems Zone Utility facilities Runway, taxiway, service road, fuel storage Hangars, tie -down areas & parking facilities Flood Plain Street and road projects Excavation, grading and fill for maintenance and repair of road Operation, maintenance and piping of existing irrigation systems Bridges Utility structures Hydroelectric facilities Golf courses, driving ranges, tennis courts, picnic grounds EFU Road construction and transportation system improvements Rest areas/weigh stations Creation, restoration or enhancement of wetlands. Piping of existing irrigation systems. Fire service facilities Churches and cemeteries Utility facilities (sewer, water, electric, etc.) Winery Facility for processing farm crops or forest products Public park and playground Community center Personal use airport Living history museum Extraction and bottling of water County fairgrounds Solar power generation facilities Dog kennel Landfill approved by DEQ Golf course Private parks, playgrounds and campgrounds Public and private schools Destination Resorts Guest ranch FI/F2 Uses to conserve soil, air and water quality/fish & wildlife resources Road and highway projects Hunting and fishing lodges Log scaling and weigh stations Disposal site for solid waste with DEQ permit Private parks and campgrounds Fire stations Utility facilities, including sewer and power Page 3 — Chart of Uses that May Involve "Surface Mining" Water intake facilities, treatment facilities, pumping stations and distribution lines Reservoirs and water impoundments Cemeteries Utility transmission lines (esp. if underground) Expansion of airports Public parks Facility for processing of forest products Firearms training facility Page 4 — Chart of Uses that May Involve "Surface Mining" �7, ck ti 1, T71, 1 S CIL C"i p i t 0 j '7, C-" 1.1 4 too n r e, I t I V P I- (I j, Lls v se -n<,-- t ca: e A"! bI �. u �l t, i- ve MCC I vr,l t o y R o 1) e. r L S i rid ROPrcsell C) Lms t r oill -v, 0, r s BOC a do 1- ev Pot t �, ) n Pv 11 1� ;_B presunt,itivt!s SLC�VtlI , tl i e Ur c-, s i d ell L 0 1,,a .,. r q i"C', pre s en t a t J- ve. It,') ns e 1 1 �; I Gonun tee c ova P, o� u i, L s ,,, c t j, ons and he, l000ld therefore th-'t1.1 1,�, 1-;-Icl ;,111 Cpportlinit% not reco.ni�, ;i 1�aotiol" to '1(jJojlrn 1111L I Non-bucNeL hill for recon—SISIO—LI—tio"' Ljr lot- Ole recUIM- Hause D W F. Bill 3013--Rc-lill ing to 11linir,, surf acre mil-itn. operz, L ions ; providi-na _. Cted lav Sur f f m,r o tioll of Ililds It ies ild prescri.bing t'T', Cffecti%�I ""'L 3 C, t ljouse Bill 3013 1)�,. amended ved tli� 11eesentati-vC NIcGj1vra , rijo'i --d bill'' "SecLioll "ft(,r lin 7, Page tt of the I)I-inted enurossu C ct ioll is t tlTstTzadtn the ions, of subsecLi-Ins (1) and I the t ptconduct- Ll"S ol Y '11 S c �jn�, landownel.-.. -or - " , -­ i 'J" �1 i T) `4 P C' i CC LIdS Act, sh," thto -J� ,f�ectiveS and L9. �j7e.ctjon,� 17 and 18 CrLo of th i s A C t "IcGil-vva uxpla-Lmd tha!-- this bill pro. idk�s r onmen L, C t. c, op,l! pl,t: Lu Cho em L! i ;, 1--i11 bo mi 11 i -n -r be reducc(l to n lalillrr�lt- Up-,�n �,ib;indonmen' p Lann i ng The bi 11 kl"Ilres -ttil 1.ong r-311ge, tand uso ,lncu vilinim, 1 4- : in jccord, c,M After Jul% i<TMl 5-o exb2nt Plic It - 1 oyl p I.red e n n '!,nd k-, C, I f�)- Furtt.ic F rl cape 1, a t I oi1 In l Spec tfv 110%, the 1-ind gill be restored a I' (:,Q.d M;rle.ra tl Ci Ge 01 Ltd yl I n" e ,i cl I po, I-ra 1 p 1. on - The Du p; i r L u u ni m*,,.-,�t -"Ccomp ) pL:111 1.4 SUIL111-),C1-1 , blit 0 s L i.,, n r (,SC de L o rill ne Ltile: ��I[d Of ('00i periorlyvincc 0, �md Mineral 11 L ho IiscreLion of he De p�l 1: loft to ro% th - k ny .Ind pi Si 1h c orim, 0.0, N'o Yi 2 .St plly pe rutl I o'll Jut y T C t CC- 11111 In V ,Tea- or ul p d t . I LS 1, nd $,25 or rc ll� -,"o 1,; 3 1', 1 � l -'o, 1;, -,. Cn o r L e o Act, - "N'to. diet, t ill e 1-11, il S 0 L 0 C= r r,-. eiilt Lhk-' Pr(Y"' �-;i On S C t: t: e d 1- 0 t, i� z bu, 'Lt is Clio, Ind '�5 000 thore:t Y �t �' r ' rr. h r i i ig I Ll t I ictivitiei; 1�sociaLod intended Lhat., by bi-I-1 1-i.i7-i'Led to those pro-,;Lsiow; a FundIppropl-- lni-ni-ng Pt� 1,111i I thu revoa S -Y not` he ic e:,M1 .1 EXHIBIT B PiieY ?83 . ime 3, 1971 ita res^ntat:ivc P1c_t'avza't� elution to amend €lrrie�d Un=tniznu- 1 :_ E' _. _ _ -- - y, t71 f c It at i.yc. RIC It -rz1 moved tl�cit House Bill 30 he rE po�-tod ottt. to , lle� yen<ite taa til elle zceoirlmend__ _ _ 1°�?. tFlat it "i3oass 1sIn�nded.'� _ _� ifol.iol carried tln�Inirlc7i; IV on roll �,ott-illi t�Gc t. bi115 con:�ideLc.ci by Subconuni.ttee mild re7c� before Tu11. Ccs-,- ,ttte0 1i�� 15 Li3I 10:38--RLe l atin<1v to indcrgartens ; Ivl neling CiRU 327 .006, 3'27 .OI 0, :3_7,(} 5 Incl 336.1.05. iif�bout> reporte'. .l, 1:'11;31. :)ubcoinvait tee No. 4i'E_'C.oil1"iiP-nCi :IpproL'<i1 7* this bill relit to kindf r,_ in ti -1� • It_ does not t:lake kindergartens mandrator; hut. prc)vWes that, ' n sc.l t5�t �3a -LI bti initiation1eschoolidistric.t School Bcar<.l, pt=t into ope.ratlol " t ndf:,T lrtcu pto LaII. t I t .)t tile. t S l o Schoen. 4L11 hC CIILLL1eL3 re C1ve II1C111E.;' 1 tilt pt'<i 3,ti i«ndf i ° G'rtcn pUpz-ls Support Fund on tyle basis of =a ..5 Atkl pe studs IIt lais L,,il1 de end on tinly go to school half da"'s . Tile financial impact: €� p t.ile rnunber of districts r? hiCli.I1operiatin of e 1 1'durin� 1970 -and 71 ,ntilc7eBosicr of sSchools invcl lve d . �Il i_hc. 8upptal-t Fund ;;OUle? h�tve boen reduce d by rlpprokint�te ly � 1 .3'€ p�.!r student . Tliere are 37 kindergartens in tyle tato -3t talc preycnt tirac, covering raft t54t..I,i d t11at city €Ils t()f the its. .n are>.a7 oz tlae s C a to , and viz can tea ort e;ls1:' `'rt.:aS r£C�L IIsZe' Lt1C i�rEd for 'vindea:7artens itij tiavc been sty p't� 1t. la 5ro rL' Tar dol _.s s . tit c. co>"t1p"testi' costs ;st tltr: ltac:lx 1c�Lel .:ith 1 1�- �t)8 b,. 111en tf el } , ln_erti.�l Sen:Ito RZobe.rt u1t Led teat kio�tSe �i l l _ _ 1.11 111x1 i'm'_ {tFtC tinted bill 1 ter tltt � riod IiUc ey^l.r, l 1 district _ 4ciledT l i. that o 17 e's thrcnl ,rt)Ut ttlf' �t -Ir fur set1(ie)L t caret aflc��ts a iI .. - _ t f titC7Gr a113 5t11� I 1)F Cor -,i 7ttLe schools ir; the �ctist>_tet avt _ - i1 or, ...,. '..•_ .'.. 1t E r t_ Cl i S Iv SiE. t'lbit Y `+i? .7. ) i Y Cfac�jlt 0 i E dt ( 1 L� 2I t_._ --}.--•I `' s t til t C}1..�_ �. �_ rf 7111 t i _ . _ n �.Y the NU -' S:a i -d 11 sLl nt�t '?'o Led _l e.11 �e:llf'cltllF✓. .�t1 turf., be fixer ��r ttl:tzt�z` t�tf b w_ __ - r_ pIa ossa ti P1'.i€: at. tar=;(int L:_ _ T? c. ? = L 1 �fTI7tt): ltiUi'.t.t� L:3 1 t� t E Bill .tilts tt F.s�Ylti-l``> t.i�'1 >sn= x Ia.�k 1t1� F1 t tt .3110 T't- i C l I I I fl 1. i 1 U+ ;e= r .. or t tl o L lIv oft t ! t ti.Ut� e li .-..........______... .._....��.. _.�,. ..--..�...._.� 5c:?lIt-F.Sk': 1'LiuC.�t.:; ti' c: l i'mp;)Ort of i.i t. 11"."+. L �. t 0 r i C z_ 7 L t I unds :I it: l l L�:4_ :115pI 4)171 ._ : i. C' -f lit t. t', It t t e 4l` ( C .,t S t' 'CEl a)l51 tt a.SiL l I. C.: 151 �5vt 7) I 10,; t.l4kt tl t'_5o.lt.t>.-t Lilt tJ !li L) 4d.t E C 1 ) 1 �� the C..vt.1- _t 1. `l Cts e 1,i ..: C: C' llt i.i-; f'_T. C s�tti iCae ;a , .�. n;� {„t 2 til pi i4rc t _Pe t pu Lsor -1.l} 1 (}4 �C:..lfl t1 _. t: :t E s 4.. ?tti 'I i ,•i r C -(Ili:' IcsuI L5 One of t F t„? S to LF pT'.X5,1 oro Y1 -t I_� r t1% r nS Ic :ett pc Lt1LL'drtn 11 �G� loth �ooner and, 511 t Q school _it;otl, btlt not 1101 r t. :a i pt; l` 1. 1. f.. `-. • `. April 11, 2018 Deschutes County Board of Commissioners c/o Anthony Ranguine Deschutes County Community Development Department 117 NW Lafayette Avenue Bend, OR 97708-6005 Re: Appeal of Hearings Officer's Decision; File Nos. 247 -17 -000629 -PA; 247 -17 -000636 -CU, 637 -TP Commissioners, www.colw.orcg Central Oregon LandWatch ("LandWatch") is a conservation organization which has advocated for the preservation of lands and wildlife in Central Oregon for over 30 years. We urge you to deny the planned development approval and plan amendment and affirm the Hearings Officer's decision to deny the surface mining and recreational facilities. Deschutes County's mule deer (Odocoileus hemionus) herds have returned to the same winter ranges over millennia. The deer are not biologically equipped to adapt to rapid changes in development patterns in their historical winter ranges. All of the county's developed lands, including this rural residential neighborhood, are at lower elevations, right where the wildlife need to congregate in the winter. Mule deer are prized by wildlife watchers and hunters alike, but in recent decades their herd numbers have plummeted. Deschutes County protects its critical deer winter range in part by prohibiting recreational facilities there. There is a large preponderance of evidence that mule deer population numbers are experiencing significant decline across much of Oregon generally and in the Tumalo Deer Winter Range specifically. Winter range is particularly important to individual deer survival and collective herd health as it supplies critical forage and cover when the animals are at their most vulnerable, on the very edge of survival, during Central Oregon's long and often harsh winter. Over the years this essential habitat has seen significant cumulative impact, including the fragmentation, degradation, barriers to wildlife movement, and disturbance to wildlife behavior that has accompanied rural development and concomitant activity on the range, particularly in Deschutes County. Ironically, frequent encounters with mule deer within local urban areas and neighborhoods, far from being indicative of healthy population numbers, may well be due in large part to displacement from much of their rural habitat. Finally, mule deer also serve as a sort of indicator species for the health of the range and as a proxy for the other wildlife that depend on it. We know that much of your deliberation often involves weighing conflicting perspectives on the balance between development and resource protection. In this case, the proposed recreational facility must be denied in compliance with the county's longstanding protections for the limited amount of land set aside as winter range habitat. While a water ski lake can be located anywhere, mule deer are not biologically equipped to alter their ancient patterns of returning to the same winter range habitat year after year, so the habitat boundaries cannot be moved. We request that you uphold the Hearings Officer's decision to deny this recreational facility in the county's winter range. 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MONS m LL bA Ln Tool O 00 Vol N r -I 00 V V 0 Loni .IMMU E O U •� E cu U 'Ln 0 iz V) 0 U E 9 i to -0— 0_to Ln N U C - Ln U .N � O � N i O E Q O Ln i Ln O (U (U+' a-+ Ln =3m = c6 :~ N to fu t) -O .E O ca CL iA f6 ul U U O 4-J +' vi U4.) OU Lf)O _ 4-J V) O � .0 M � +-j 4A • • - p Q to � v a; L E �: � O a cn z 0.— : 0 0 • • • 4— LO m r:O -0— 0_to Ln N U Ln U .N � O � N i O E Q O .0 Ln O (U (U+' f6 Ln — = c6 :~ N to fu t) -O .E .E ca f6 ul 4— LO m r:O • m U � O � N i O i N O s- O 00 O f6 � — p • to c6 :~ N to fu t) -O .E .E • m 4-J L.L.. O 0 Ul r O 4-J U Q CL Q _N C6 4-J O N E f� to� o c C- a cu v - -0 v N 0 .a' E -0 Ln V bn CU � _I—_. a� +, � oc to U N C N_ Ca ' N O O c a--+ d- � V � L C `i • U In Opposition to Application Files 247 -17 -000627 -CU, -629-PA, -636-CU, -637-TP9 -639-CU, -640-SP, and -641-LM Chair DeBone and Fellow Commissioners Baney and Henderson: I am AB, pediatric oncologist and OHSU faculty member. I retired 2 years ago from St. Charles Healthcare System (SCHS) administration & cancer center, and after chairing the SCHS Institutional Review Board for 6 years. My wife & I have been homeowners in Central Oregon for 40+ years. At least 80% of all residential lots are required to have open space. Our own 1.5 acres on Awbrey Butte has >95% open space that in just the last 3 months deer, elk, coyotes, squirrels, rabbits, and chipmunksAenjoy":. mice too, both inside and out. It is illegal for us to compromise the 80% minimum requirement! I will address 80% open space minimum requirement vs. what I see as 9% on the revised Water Ski Lake Location Map with tax lot numbers. The Recreation Oriented Facility proposed lot line adjustments comprise 32.11 acres (Lots 824,828). Of these 32 acres, 6 are planned [as I understand it] for 3 houses (Lot 823...) and their surrounding property. That leaves 26 acres of RR -10 lots for the Wildlife Overlay Zone (WOZ). Of those 26 acres of WOZ, the liner of the two artificial, constructed, lake structures cover —24 acres, leaving 2 acres, or 9%, of open space. How is it legal to cover 90+% of WOZ with hardscape when no more than 20% is allowed? Moreover, the synthetic liner is impermeable [otherwise no lake] and prevents contact of life above with the soil underneath. It restricts 24 acres for human use [including loud human use] and denies habitat that is reserved by community consensus, the Central Oregon comprehensive plan, and the law, for wildlife. The liner also guarantees that all the water used in the lakes will evaporate into the air with essentially no beneficial use for habitat purposes and zero groundwater recharge. As longtime residents and healthcare providers of both humans and subhuman animals, we don't understand why you and county staff would approve converting 24 acres of wildlife habitat space to recreational facilities on 32 acres of Goal 5 protected area. As healthcare providers for people, pets and wildlife, we expect you to continue to protect Central Oregon and deny the recreational facility application. 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