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2018-337-Minutes for Meeting June 13,2018 Recorded 8/10/2018u -i ES;�OG BOARD OF Recorded in Deschutes County CJ2018-337 Nancy Blankenship, County Clerk COMMISSIONERS Commissioners'.Journal 08/10/2018 10:57:40 AM 1300 NW Wall Street, Bend, Oregon (541) 3 88 6570 2018-337 1:30 PM WEDNESDAY, June 13, 2018 FOR RECORDING STAMP ONLY BARNES SAWYER ROOMS Present were Commissioners Tammy Baney, and Phil Henderson. Commissioner Anthony DeBone was present at 1:4-1 p.m. Also present were Tom Anderson, County Administrator; 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: Vice Chair Henderson called the meeting to order at 1:34 p.m. ACTION ITEMS This portion of the meeting was audio and video recorded. 1. 2019 Requested Fee Schedule: Christina Partain, Finance Department presented the item as a follow-up to the May 19th Work Session and Budget Hearing Week. The District Attorney's Office and Fair & Expo Center fee schedule requests were reviewed. The Community Development Department fee schedule changes were outlined through a staff memo. Commissioner Baney spoke of the challenges of economic times and the staff responses to great services. Commissioner Henderson commented that the CDD fee increase is high. The application BOCC WORK SESSION JUNE 13, 2018 PAGE 1 OF 6 fee for marijuana production application did increase due to the amount of staff time required. The Health Services fee schedule changes were reviewed in the Public Health Services department highlighting the Environmental Health fees. Commissioner Henderson noted the fee increase for food service would place Deschutes County as 2nd in the state. Discussion held on a possible general fund investment and phasing. The proposal is an increase of 12% and the Board supported 6% at this time. County Administrator Anderson suggests the Board could re-examine during the course of the year. 2. Marijuana Regulatory Assessment / Preliminary Amendments Community Development Department staff Peter Gutowsky, Nick Lelack, and Tanya Saltzman presented. To date, staff has not received a formal response from the Oregon Health Authority. The Oregon Water Resources Department (OWRD) responded and noted the challenges of tracking water resource use. They examined the greater Alfalfa area and acknowledged the levels of metered sites. Commissioner Baney inquired if the medical marijuana grows have water rights and should be inquired of OWRD as well. Mr. Gutowsky reviewed the preliminary amendments and explained a Measure 56 notice is required by state law to communicate to property owners that Deschutes County's amendments may limit uses on their property. Discussion held on distance of affected properties requiring general notices. Commissioner DeBone spoke on a public hearing option regarding the amendments. The Planning Commission could hold a joint meeting with the Board as well. Suggestion made for a Work Session to be held inviting the Planning Commission. The Board acknowledged the requirement for a Measure 56 notice. The M56 notice will cost approximately $3000. A 35 -day notice will need to be prepared and sent to DLCD, and a burden of proof will need to be prepared by staff. A public hearing date in August could be arranged. BOCC WORK SESSION JUNE 13, 2018 PAGE 2 OF 6 Mr. Gutowsky commented on the Oregon Health Authority and medical marijuana grow sites. Discussion held on inspections and reporting. Staff will come back to a Work Session to review a potential schedule for a public hearing prior to sending notices to property owners. 3. 9-1-1 Update 911 Interim Director Sara Crosswhite, ADCOMM Engineer Joe Blaschka, and Bend Police Captain Gregory presented the update. Mr. Blaschka reported the Overturf temporary tower site has been on-line and seems to operate without error. They are waiting for the survey and geotechnical report on the property for the identified permanent tower site. Commissioner Henderson inquired if an additional site would also be considered to the south. Mr. Blaschka responded that no such site is under consideration at this time. Captain Gregory expressed the positivity of having Overturf up and running and this has improved the quality of calls. Commissioner Baney inquired if new challenges on the horizon could be anticipated. Bend Police Department has made adjustments to their equipment and with Overturf they are in a better position to review the equipment. Mr. Blaschka reported the audio microphone issue is currently being addressed with Day Wireless. Mr. Blaschka stated the system was never designed for in building coverage. Mr. Blaschka spoke on a future need that may be required with additional equipment, permitting, and possibly in the Redmond area. County Administrator Anderson noted the amendment that will be coming before the Board for the Harris Corporation contract for additional work to perform to finalize the permanent Overturf site. Mr. Blaschka spoke on permitting adjustments that are required due to the fact they do not comply with the City of Bend's Comprehensive Plan. Captain Gregory asked what the County sees as an acceptable range of coverage which will help with future review of needs for additional equipment or towers. Commissioner Baney stressed the hope that the 911 User Board is consistently reviewing the BOCC WORK SESSION JUNE 13, 2018 PAGE 3 OF 6 coverage levels. The Board supports refining the number acceptable for the coverage areas. 4. Central Oregon Canal Nomination to the National Register of Historic Places Zechariah Heck, Community Development Department presented. Commissioner Baney noted she will not be participating in this discussion due to prior declared conflict potential due to property ownership in the area. Mr. Heck drafted a letter after the recent direction by the Board. Commissioner Baney requested the letter be signed by the Chair and Vice Chair only since she is unable to participate in the discussion. Citizen Aleta Warren has asked if Commissioner DeBone has also recused himself. Commissioner DeBone noted he did attend an informal tour of the area but will not be recusing himself. Commissioner Henderson reviewed the letter and wants to include language regarding some comments have been reviewed and to add the words development of Central Oregon not just settlement. The Historic Landmarks Commission did extend public comments to the Board. Mr. Heck will make suggested revisions on the letter. HENDERSON: Move to approve as amended DEBONE: Second VOTE: HENDERSON: Yes BAN EY: did not vote on the matter DEBONE: Chair votes yes. Motion Carried 5. Economic Development Loan Request. This item was pulled from the agenda and rescheduled. BOCC WORK SESSION JUNE 13, 2018 PAGE 4 OF 6 RECESS: A recess was taken at 4:00 p.m. and the meeting was reconvened in the Allen Conference Room at 4:13 p.m. EXECUTIVE SESSION: At the time of 4:13 p.m., the Board met under ORS 192.660 (2) (d) Labor Negotiations. The Board came out of Executive Session at 4:45 p.m. OTHER ITEMS: Commissioner Baney had at 4:45 p.m. to leave for another scheduled meeting. Commissioner DeBone supports adding an additional Work Session to the Board's schedule. COMMISSIONERS UPDATES: • Commissioner Henderson went with members of his to AOC County College class to a Tillamook County Chamber of Commerce "Working Lands and Waters Program" and reported on the tours that were taken by the group. • Commissioner DeBone noted a Chamber of Commerce meeting in La Pine today and shared the outline of Board of Commissioners power point slide for community conversation. Met with Legal regarding LUBA cases. Stopped by the Deschutes Public Library for their visioning day. Bend transportation plan open house was on Monday night. • Commissioner Henderson noted the Project Wildfire dinner tonight. • Commissioner DeBone attended the Circuit Court Judges Dinner. They asked for help and support in a legislative ask for an additional judge. BOCC WORK SESSION JUNE 13, 2018 PAGE 5 OF 6 OTHER ITEMS: County Administrator Anderson inquired if a Commissioner was attending the NACO conference in Nashville as there was a request to assign delegates. w� Being no further items to come before the Board, the meeting was adjourned at 5:03 p.m. DATED this _ Day of 2018 for the Deschutes County Board of Commissioners. „E., s, ' I RECORDING SECRETARY ANTHONY DEBONE, CI TAMtMY BANEY,C ISSIONER BOCC WORK SESSION JUNE 13, 2018 PAGE 6 OF 6 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 - www.deschutes.org WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 PM, WEDNESDAY, JUNE 13, 2018 Barnes Sawyer Rooms - Deschutes Services Center - 1300 NW Wall Street - Bend Work Session, which are open to the public, allow the Board to gather information and give direction to staff. Public comment is not normally accepted. Written minutes are taken for the record Pursuant to ORS 192.640, this agenda includes a list of the main topics that are anticipated to be considered or discussed. This notice does not limit the Board's ability to address other topics. Meetings are subject to cancellation without notice. CALL TO ORDER ACTION ITEMS 1. Marijuana Regulatory Assessment/ Preliminary Amendments -Peter Gutowsky, Planning Manager 2. Central Oregon Canal Nomination to the National Register of Historic Places - Zechariah Heck, Associate Planner 3. 9-1-1 Update - Sara Crosswhite, Deputy Director 4. 2019 Requested Fee Schedule - Christina Partain, Accounting Technician 5. Economic Development Loan Request -Judith Ure, Management Analyst COMMISSIONER'S UPDATES EXECUTIVE SESSION Board of Commissioners Work Session Agenda Wednesday, June 13, 2018 Page 1 of 2 Executive Session under ORS 192.660 (2) (d) Labor Negotiations Executive Session under ORS 192.660 (2) (i) Employee Evaluation At any time during the meeting an executive session could be called to address issues relating to ORS 192.5660(2)(e); real property negotiations; ORS 192.660(2)(h) litigation; ORS 192.660(2)(d), labor negotiations; ORS 192.660(2)(b); personnel issues; or other executive session categories. Executive sessions are closed to the public; however ,with few exceptions and under specific guidelines, are open to the public. MId0147111t4"YR11 These can be any items not included on the agenda that the Commissioners with to discuss as part of the meeting pursuant to ORS 192.640. ADJOURN 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.deschutes.org/meetingcalendar Meeting dates and times are subject to change. All meetings take place in the Allen Room at 1300 NW Wall St. Bend unless otherwise indicated. If you have question, please call (541) 388-6572. Board of Commissioners Work Session Agenda Wednesday, June 13, 2018 Page 2 of 2 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 Work Session of June 13, 2018 DATE: June 7, 2018 FROM: Christina Partain, Finance, 541-385-1412 TITLE OF AGENDA ITEM: 2019 Requested Fee Schedule RECOMMENDATION & ACTION REQUESTED: Address concerns raised at the 5/9/18 work session regarding requested adjustments to the County Fee Schedule. Review modifications to the schedules for Health Services and Community Development. ATTENDANCE: Nick Lelak, Sherri Pinner, James Wood, SUMMARY: Deschutes County amends and adopts the Fee Schedule annually in accordance with chapter 4.12 of the Deschutes County Code. Fees are adjusted to mirror ORS mandated fee changes and the actual cost of service. 7 a) L U U Ll 'D d a) O � O a N r } LL C 7 O U N L U U a) ° Li 00 0 O ` N Z 0 LL LL 0 S F LLI Q 2 W o W F- rn c Z D U. a c° Q; c a a)+ O Ea WO1 Y _ O a)7 rn E:CU N w 0) rn� C, CML ca o aana; a E CD o O N M O �% O U cO0 0 U o 0 O O D1 v L6 ',, O O L6 Q r Q Lq O M M Q CD LLCD T L N LL Ca 0 c6 > �o N m C -o co -. 0a o : c c' N Co > O E. O O CL E v C Q) N 7 CL O a1z (9'C co cq w W6 O O U_ O N w -0 > T N N O) O O -0 .0 U N a5 O n �� nE EE a" 0 O a) N W m c c N a) 0 3 m: N C - Z, O C . C C 0 N �, c W p N 0 7 LL : O y E E, cu m a� � o 7 0 7 t22q o 0 U O 7 N t� y 'I, Ccpp U a W C oiS C C �ob �Ccp '',, O) O) C7,. U ,. U V O O. 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(n U) �. c 3'2 N,',. .Q2 uiN �' W Q !- d H'Q U'U,H R' z .- N 0 N N N N N N z 2 (;U) N U) W I- 7 N v U) N LL 91) U) c N Q' LL T C 7 O U N L U N 0 LL. CD O N'. O Z G! O LL's LL a H O 2 I H 'M � ' Q C/) W V I Z ' ' W O d w � O) "0 "I � N 7 N CL C, O °� C o a .o 0 c) d U. 00 O N LL Z 0O O .. H � V' v U) c c�a ' CU c'. a) or E, O CU a N_ �{ O r N J i al M o''' C O C O N Y � CLI ,,..., y ` Ml E E x cD'' O` O N O (6 L ',, LL d C) U'. O N Cl) V W ii w 0 o Z d N � O � LL LL a i H 0 Z H Q Z W F U Q Z W L C O N y F � � f4 C O � O G' C N N .«L• O C'' 0 LO d LLL co O N } LL Z O a y w ~ m a� LL N U_ Z N C N E' cn G Z ui 2 W H To: Board of County Commissioners Christina Partain, Senior Accounting Technician From: James Wood, Health Services Business Manager CC: David Inbody, Health Services Deputy Director Date: 6/8/2018 Re: FY 2019 Health Services Fee Changes Summary of Changes: Behavioral Health billable rates are increasing by 6% on average. The majority of public health fees are mandated by the State and have been aligned with the State. Environmental health fees are determined based on actual -cost and have been proposed to receive a 12% increase, on average. All other fees, pursuant to County Code Section 4.12.030, are proposed to receive an annual adjustment commensurate with the consumer price index. Summary of Fee Increases (by Program) from FY 2016 through FY 2019 Program 2016 2017 2018 2019 Behavioral Health Fees 0% -12% (1) 3% 6% Actual Cost of Service Vital Records 0% 25% (11) 0% 12% (u) Fees Mandated by State Patient Office & Well Service Visits 5% 3% 2% 2% Actual Cost of Service Targeted Case Management 0% 0% 0% new Fees Mandated by State Procedures 3% 1% 3% 2% Actual Cost of Service Immunizations 8% 3% 2% 4% Fees Mandated by State Laboratory Processing Specimen 0% 0% 0% 0% Actual Cost of Service In -House Testing & Injections 19% l'v) 48% l'v) 1% 4% Actual Cost of Service Environmental Health 6% 0% 0% 12% (V) Actual Cost of Service (1) Unfilled vacancy expectations were factored into the billable -rate model. (It) Cost per birth and death certificates changed from $20 to $25 per State of Oregon mandate. 011) State of Oregon allowed for a $3 surcharge on top of the $25 certificate fee for identity verification. (Iv) The average fee during FY2015 was —$8, with FY2016 increased to —$10, and FY2017 increased to —$15. (v) Significant changes in personnel costs within this program. Behavioral Health Health Services utilizes a "unit cost calculator" financial tool to annually set the behavioral health service fees at "Actual Cost of Service". This tool was created to provide Oregon Community Mental Health Programs with a reliable and standard methodology for calculating unit costs for the services provided. The "outputs" or "fees" recommended by this calculator are used in justifying the amount of service (in dollars) provided by the Behavioral Health division to outside parties. Furthermore, the tool provides a starting point for the direct billing of clients (the Health Services Department accommodates for clients with an inability to pay by applying a sliding fee scale that is based on an individual's income in comparison to the Federal Poverty Guidelines). The primary inputs to the fee setting formula are budgeted expenditures, FTE count of direct service personnel, type of direct service personnel, and number of hours available for services. Budgeted expenditures, FTE count, and type of direct service personnel are consistent with the FY 2019 Requested Budget. Using the inputs, the model calculates a billable rate for each service provided, by each type of direct service personnel. Billable rates are summarized on the County's fee schedule by either service provided, or type of direct service personnel. The update to the unit cost calculator for FY 2019 resulted in an overall net increase to billable rates of 6.4%. The actual range of change experienced amongst the different service types and direct service personnel types ranged from a 4% increase to a 16% increase. The FY 2019 results include payroll changes from the class & compensation study, and normal payroll increases from step -increases and cost -of -living adjustments. In summary, with consideration being given to the change in cost for direct -service employees, Behavioral Health fees for FY 2019 do not vary significantly from the FY 2018 fees. Public Health Fees for Vital Records are mandated by the State of Oregon. The Oregon Health Authority issued a new fee schedule effective January 1, 2018 and those changes were incorporated into the FY 2018 Public Health Fee Schedule Vital Records section mid year. Since the mid year fee schedule update, the Oregon Health Authority has allowed for entities to charge a $3 surcharge for applications requiring "applicant identity verification" through a State-sponsored web -portal. Furthermore, the Health Services Department is requesting the authority to charge a convenience/handling fee (2.5% of transaction amount) for online payments to cover the cost borne with taking such payments. 2577 NE Courtney Drive, Bend, Oregon 97701 `."(541) 322-7500 @healthservices@deschutes .org Ommdeschutes.org/health Public Health fees for Patient Office Visits and Well Service Visits were calculated based on an actual cost analysis of services performed during FY 2016. The formula for calculating the fees is dictated by the Oregon Health Authority and the calculations are reviewed during the triennial review, performed by OHA (the next triennial review, and subsequent fee adjustments, is scheduled to occur during Fiscal Year 2019). As such, the FY 2019 fees for Office Visits and Well Services have been increased by 2-3% in accordance with County Code Section 4.12.030 (an increase commensurate to the annual change in the consumer price index (CPI)). The Targeted Case Management fees are mandated by the Department of Human Services and have been updated to reflect changes made by the State. The State is allowing for reimbursement of Targeted Case Management to be collected at $355/encounter. This amount is not billed to clients, and is only used to collect revenue from the State. The Targeted Case Management program has replaced the Maternal Child Health program. Medical Procedures performed by both County staff and visiting physicians have been increased by 2-3% in accordance with County Code Section 4.12.030 (an increase commensurate to the annual change in the consumer price index (CPI)). Fees for the Immunizations (incl. Special Programs & Vaccines) program are mandated by the Department of Human Services and typically adjust on a semi-annual basis. The most recent mandated fee increase is reflected in the schedule. To -date, the fees for Laboratory Processing Specimen have remained between $15 and $30 (fee is based on actual cost charged by external laboratory); however, some more -advanced testing methods are proposed as exceptions to this fee. It is proposed that the current actual -cost charged by the laboratory for the "Thin Prep with Imager" and the "HR HPV Test" be called out separately. Those fees are $54 and $71, respectively. The fees associated with In -House Testing & Iniections performed by County staff have been increased by 2-3% in accordance with County Code Section 4.12.030 (an increase commensurate to the annual change in the consumer price index (CPI)). 2577 NE Courtney Drive, Bend, Oregon 97701 0'(541) 322-7500 c? ealthservices@deschutes .org FDvww.deschutes.org/health The Environmental Health program is proposing a fee increase of 12% (on average) for Fiscal Year 2019. In addition, new fees for Food Manager Training & Certification and Miscellaneous Tranining/Assistance are also being proposed. The additional fee -revenue needed for Fiscal Year 2019 is $120,000, which can be attributed to the following changes in program costs: 1) Class & compensation (C&C) had an overall impact to Fiscal Year 2019 of $35k/year a. Immediate "implementation" impact of C&C was $15k/year cost for existing staff, starting on 01/01/2018 that continues into the future. b. Compounding impact of C&C was an additional $20k/year to start FY 2019 (i.e. additional steps available to employees under new pay structure). 2) Annual step -increase to existing staff had an impact of $33k/year. 3) Annual cost -of -living adjustment had an impact of $15k/year. 4) Reassignment of cost for supervisor from Communicable Disease to exclusively Environmental Health had an impact of $28k/year. 5) Expected vacancy rate reset from 5.5% to 2.0% had an impact of $26k/year. 6) Offset with projectedrg_owth in licensees of 2.2%, an impact of ($17k/year) 2577 NE Courtney Drive, Bend, Oregon 97701 Q'(541) 322-7500 @healthservices@deschutes .org-vww.deschutes.org/health Notes from 5/9/18 Work Session District Attorney: Concerns were brought forward regarding increases to the Sex Offender Packet and KIDS Center Records/DHS Report fees. The District Attorney will not be requesting an increase to the Sex offender Packet Fee, it will remain at $3.00 The Kids Center Records/DHS Reports fee requested increase will stand. Questions raised at the prior 5/9/18 work session were: Why the large increase, how many requests per month, and who requests the information. See below for the department's reply. The processing and discovery of the document takes additional steps/work time. The trial assistant is required by state statute to obtain a protective order before discovering these records. This requires contacting the defense for a position, filing a motion, and waiting for the signed document. The additional time warrants an increase in the process price. There are 20+ requests each month. The office is required by state statute to request and discover all available evidence in a case, so the request for the document is made only by the defense. Fair & Expo: Further justification was requested for the increase of 2% to the Food/Beverage 3rd party catering charge. The increase brings the fee to 14% with no use of kitchen and 17% with use of kitchen. Dan Despotopulos' reply: Cost of business has increased approximately 8% since the program started. The industry standard is 20%. Part of the reasoning for the reduced percentage we have been charging was that we expected the 3rd party caterers to bring new business to the Fair & Expo, which has not happened. 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The revision is in accordance with BMPRD Ordinance No. 8 and Resolution No. 311, Methodology for Calculating Park System Development Charges. This letter along with the revised fee schedule is tendered in order to provide Deschutes County with adequate notice to adjust collection of the fees pursuant to the Intergovernmental Agreement (regarding) Systems Development Charges between the County and the District. The new park SDC fee schedule becomes effective July 1, 2018. The BMPRD SDC methodology as outlined in Resolution 311 contains a provision allowing an annual, indexed fee adjustment. The index is based upon a weighted average of the estimated increase In real property values within the district, as published by Deschutes County Assessor and the Engineers News Record Construction Costs Index 20 City Average. The fee adjustment method meets requirements in ORS 223.304 regarding SDC fee indexing. I have also enclosed the 2019-2023 BPRD Adopted Capital Improvement Plan Summary (CIP). The CIP identifies a total of $86,065,926 in park, trail and recreation facility improvements either completed or to be undertaken by the District in the fiscal years ending June 30, 2019 — 2023. Of that total, $49,495,506 (57.5 %) is funded with System Development Charges. Please contact me if you have any questions about the SDC fee adjustment. Thank you for your continued cooperation in collecting the District's park SDC fees. Sincerely, Lindsey D. Lombard Administrative Services Director cc: Wayne Lowry Sherri Pinner District Office I Don Horton, Executive Director 799 SW Columbia St, Send, Oregon 97702 wwwbendparksandrecorg 1 (541) 389-7275 Bend Park and Recreation District Park System Development Charge (SDC) Fees for July 1, 2018 - June 30, 2019 Fee Type Fee Amount Single Family Fee $7,949 Multi -Family Fee $7,469 Guest Room $3,206 Examples for Type of Housing Unit Type of Fee to Charge Amount to Charge Single family residence Single -Family $7,949 Single family residence w/ADU Single -Family + Guest Room $11,155 Accessory dwelling unit (ADU) Guest Room $3,206 Duplex Two Single -Family $15,898 Triplex Three Multi -Family $22,407 Greater than a Triplex All Multi -Family $7,469 x # of units Hotel and/or Motel Guest Room $3,206 x # of rooms College residential dormitory Guest Room $3,206 x # of bedrooms Assisted Living Facility Guest Room $3,206 x # of bedrooms Placement Permit (Manufactured Housing) Single -Family $7,949 Bend Park & Recreation District SDC Contact Info: Lindsey Lombard Administrative Services Director Iindsev a(�bendparksandrec.org 541-706-6109 6/5/2018 BMPRD RESOLUTION NO. 410 A RESOLUTION OF THE BEND METRO PARK AND RECREATION DISTRICT BOARD OF DIRECTORS ADOPTING A REVISED FEE SCHEDULE FOR SYSTEM DEVELOPMENT CHARGES. WHEREAS, on March 3, 2009, the Board of Directors (the "Board") for the Bend Metro Park and Recreation District (the "District") adopted Ordinance No. 8, pursuant to which the Board authorized the assessment and collection of System Development Charges ("SDCs") and Resolution No. 311 A Methodology for Calculating Park System Development Charges: and WHEREAS, BMPRD Ordinance No. 8 allows the District to establish SDC fees necessary to serve future public park needs of the residents of the District; and WHEREAS, BMPRD Ordinance No. 8 requires the District to review and adjust SDC fees periodically in order to keep pace with the changing costs of land and of construction; and WHEREAS, a formula for adjusting the District's SDC fees annually is set forth in BMPRD Resolution #311 Exhibit A -- A Methodology for Calculating Park System Development Charges, Section 3.10 — SDC Fee Adjustment, and the Board of Directors finds the need to adjust SDC fees upward by a factor of 8.0% effective July 1, 2018 based upon this formula; and WHEREAS, the terms "Single Family Dwelling Unit", "Multi -Family Dwelling Unit" and "Guest Room" are defined in the Methodology and in BMPRD Resolution Nos, 354, 360, 378 and 398. NOW, THEREFORE, the Board of Directors hereby resolves as follows: 1. Bend Metro Park and Recreation District System Development Charges for the period July 1, 2018 through June 30, 2019 shall be imposed at the full amount allowed under the adopted Methodology, inclusive of indexed adjustments, and shall be: a) Single Family Dwelling Unit: $7,949 b) Multi -Family Dwelling Unit: $7,469 c) Guest Room: $3,206 2. This Resolution shall take effect July 1, 2018. ADOPTED by the Board of Directors of the District on this 5th day of June 2018. Nathan Hovekamp, Board Chair Attest: 4Z.L.., 1-4� Don P. Horton, Executive Director BMPRD RESOLUTION NO. 413 A RESOLUTION OF THE BEND METRO PARK AND RECREATION DISTRICT BOARD OF DIRECTORS ADOPTING THE FIVE YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS ENDING 2019 - 2023 WHEREAS, pursuant to ORS 223, the Bend Metro Park and Recreation District adopted a Capital Improvement Plan ("Plan") on June 6, 2017 with BMPRD Resolution No. 406; and WHEREAS, the Board has re-examined the park and facility needs for the District and finds that the projects identified on the attached Exhibit A: Bend Park & Recreation District Five Year Capital Improvement Plan for Fiscal Years Ending 2019 - 2023 are in the public interest and necessary to serve park, recreation facility and trail needs of the District; and WHEREAS, the Board has adopted Ordinance No. 10, amending Ordinance No. 8 - System Development Charges and Resolution No. 311, A Methodology for Calculating Systems Development Charges, indicating the intention to adopt this resolution. NOW, THEREFORE, the Board of Directors hereby resolves as follows: 1. The Bend Park & Recreation District Five Year Capital Improvement Plan for Fiscal Years Ending 2019 - 2023, attached hereto as Exhibit A, is hereby adopted. 2. The Plan includes those projects that are needed to serve the park, recreation facility and trail needs of district residents in fiscal years ending June 30, 2019 - 2023 including future need related to residential growth and development as specified in Ordinance No. 10 and Resolution 311 and pursuant to ORS 223. 3. The Plan identifies both those projects and portions of projects eligible to be funded using System Development Charge ("SDC') revenue as well as those projects funded by other revenue sources. Those expenditures from the SDC Improvement Fee fund and the SDC Reimbursement Fee fund shall be accounted for separately in accordance with statutory requirements for the use of SDC revenues. ADOPTED by the Board of Directors of the District on this 5t" day of June 2018. Nathan Hovekamp, Board Cha' Attest: Don P. Horton, Executive Director 3 L.3IVI M 117 U r JCI'm 3 To: Board of County Commissioners From: Nick Lelack, AICP, Director Sherri Pinner, Senior Management Analyst Date: June 7, 2018 RE: CDD Revised Requested Fee Adjustments FY 2018-19 Per County Budget Analyst Loni Burk, the Budget Committee's decisions pertaining to the Community Development Department (CDD) General Fund and Marijuana Fund allocations include the following: 1. General Fund transfer of $141k for Long Range planning — Approved at $150,000. 2. Approved transfer of $150,000 of Marijuana funds from the general fund to long range planning. Based on the decisions above please find below revised draft fee increases for the Board's consideration at this work session and subsequent public hearing: Division J Permits Building Safety & Electrical Environmental Soils Planning—Current (Development Review) Planning — Current (Public Information) Planning — Long Range Code Enforcement Initial Estimated Revised Estimated roposal Revenue Proposal Revenue 2% $65,000 2% 4.5%° $33,700 2/0 ° 9/ $99,600 2% 0.28%2 $73,800 0.27% 0.28% $64,800 0.27% 0.23% 3 $51,000 0.23% $ 65,000 $15,000 $22,100 $49,200 $43,200 $51,000 In addition to the proposed fee increases above, below is a summary of fees changes in the Planning Division: 1. Appeals — LUBA Remand Hearing Deposit — increase to $5,000 from $3,382 This proposal is to change the fee to a deposit to cover the actual cost of services (ACS) up to $5,000. The reasons for this change are that Hearings Officer fees to decide LUBA Remands often exceed $3,382, while Board decisions on LUBA Remands may be less than $3,382. 2. Mariivana Production or Processing from $1,537 to $3,400. The reason staff proposes to increase this fee is to cover the ACS for processing marijuana applications. Staff proposed the initial fee of $1,537 based on the Administrative Determination in the Fee Schedule. However, staff quickly determined that this fee was substantially inadequate to process marijuana decisions based on a variety of factors, including Board interpretations, public input, and more. 3. System Development Charge Payment Plan — Administrative Fee $3004 1 Est. new position to be unfilled for several months 2 Based on Building Valuation 9 Based on Building Valuation 4 The Road Dept. will transfer to CDD the administration of SDC payment plans, including establishing the initial agreements, obtaining Board approval, annual monitoring and notification, and close-out. The Road Dept. is transferring the process to establish a payment plan, which requires Board approval, to CDD, a primarily fee -supported department. This fee also covers the annual monitoring/tracking of payments, follow-up with customers, etc. 4. Hearings Officer Administrative Deposit $500 The purpose of this deposit is to cover staff time to prepare for and participate in Hearings Officer public hearings, and to manage the case files/records—which are significantly increasing in size and complexity. 5. Non -Conforming Use Verification $1,648 Proposes this new fee to differentiate it from a Declaratory Ruling Fee (approximately the same amount). In addition, it is differentiated from a Non -Conforming Use Alteration (see below). 6. Non -Conforming Use Alteration (with prior verification) $1,648 Staff proposes to reduce this fee when a prior Non Conforming Use Verification has been issued. 7. Non—Conforming, Use Verification,(!ti Plain).3,CJ5t Staff proposes this new fee to cover ACS based on the complexity of such decisions, including coordination with state and federal resource agencies. CDD projects the requested fee increases to generate approximately $245,500 in revenue. CDD proposes the following fees be treated as deposit/ACS, refunding unused amount to customers: 1. CDPN 5 —Appeals to Board of County Commissioners Deposit 2. CDPN 7 —Appeals— LUBA Remand Hearing Deposit (discussed above) 3. NEW —Hearings Officer Administrative Deposit (discussed above) yJ ES n t DATE: June 6, 2018 TO: The Deschutes County Board of County Commissioners FROM: Tom Kuhn, Community Health Manager Eric Mone, Environmental Health Supervisor SUBJECT: FY 2019 Environmental Health Fee recommendations To address rising personnel costs in Fiscal Year 2019, the Health Services program has provided three recommendations for the Board of County Commissioners, as it relates to Environmental Health fee increases. 1) Maintain the current service level and charge the actual cost of service to customers for services provided. (The ensuing analysis is provided to show the impact on Deschutes County fees in relation to comparable communities). This would provide an additional $120,000 of revenue for the program. 2) Maintain the current service level by offsetting, or partially offsetting, a fee increase with additional General Fund subsidy. Would require a combined benefit of $120,000 of revenue for the program. 3) Reduce time for quality inspections, education, customer service, and unfunded mandates (animal bites, mold, lead, radon, etc.) provided by Environmental Health staff to the community. Would require a reduction to Environmental Health of $120,000 in program costs (currently filled positions). The following details outline the proposed fee increases and comparison to comparable communities During our May 9, 2018 Work Session to provide our FY 2019 Fee recommendations, it was suggested by the Commissioners that we create a fee schedule that is variable (not a flat increase across fees) and which aligns with fees from other counties. Following this guidance, we have created a new proposed structure, which demonstrates comparable fees with other counties. A comparison of fees was made with seven other counties, consisting of large, medium, and small jurisdictions. These counties were chosen based on size, fees, and consistency of the fee schedule; some counties had very high fees in some categories and very low fees in others. 2577 NE Courtney Drive, Bend, Oregon 97701 �'� (541) 322-7400 @ healthservices@deschutes .org @www.deschutes.org/health Please keep in mind that this is not a complete list of all Oregon county fees, and that it was an attempt to provide a solid cross-section of fees from across the state. Proposed fee increases were carefully selected to ensure that smaller licensed establishments were not disproportionately impacted. Also, in some cases, we proposed a tiered fee structure that other counties were using instead of the flat fee schedule currently in effect. The following tables contain fee comparisons with other counties, with our proposed increase percentage in parentheses at the top of each column. Also included is our current fee highlighted in yellow and our proposed fee in green. Only the five major fee categories were used for comparison, as there are numerous miscellaneous categories that substantiate only a minor portion of total fee revenue. Please note, we have been notified that five of the seven counties compared will be increasing their fees in FY 2019 (potentially six given that Jackson County may raise fees), and these planned fee increases are not reflected in the tables below. Food Service Licenses (Restaurants) Potential additional revenue with proposed increases: $44,960 In the food service license category, there was a 6% increase in 0-15 seat restaurants and 8% increase in those with 16-50 seats. Currently, Deschutes does have some of the higher restaurant fees in Oregon, however, there will still be at least three or more counties, that we are aware of, that will have higher fees (Coos will surpass our proposed fee after they make their FY 2019 increase). Please keep in mind that while it appears that Deschutes has some of the highest food service fees, it is likely this will not be the case after Benton and Coos raise their fees in FY 19. Curry 0-15 seats 16-50 seats 51-150 seats (6%) (8%) (10%) 750 850 950 151 and over (12%) 950 + 6.15/seat Benton* 702 800 897 1092 Coos* 675 826 968 1035 Deschutes (current) 684 742 880 986 Multnomah* 615 730 815 975 Jackson 645 738 827 935 Washington* 671 732 792 916 Marion* 464 524 598 664 *Will be raising fees in FY 2019, data in table is current FY 2018 fee. Mobile Unit Licenses Potential additional revenue with proposed increases: $30,297 Deschutes County has had a relatively lower fee for mobile units compared to other counties. The same approach was used in determining these fee increases as with restaurants; smaller mobile units were assigned a lower increase than larger ones. Deschutes is approaching 200 licensed mobile units, which is an unprecedented amount and will require increased staff time as this number continues to increase. County Washington* Jackson Curry Multnomah* Benton* Coos* Deschutes (current) Marion* Class I Class II Class III Class IV Commissary Warehouse (20%) (30%) (40%) (50%) (12%) (12%) 544 544 599 656 589 399 406 406 549 549 384 423 378 378 378 823 496 336 480 480 480 480 455 400 274 330, 445- 549 297 237 293 293 293 322 312 293 250 250 359 406 233 129 228 254 318 366 265 212 219 219 219 219 365 148 *Will be raising fees in FY 2019, data in table is current FY 2018 fee. Traveler's Accommodations Licenses (hotels/motels) Potential additional revenue with proposed increases: $15,703 In the case of tourist accommodations, a tiered approach was used instead of a flat fee, which was resulting in very large hotels (200+ units) paying the same fee as small ones. With an increasing amount of new Traveler's Accommodations being built, there will be an increased demand on staff to provide the education needed, especially in very large facilities which require a much lengthier inspection. County Curry Marion* Multnomah* Jackson Washington* Coos* Benton* Deschutes (current) 1-25 units 26-50 units 51-75 units 76-100 units (20%) (50%) (125%) (150%) 101+ units 419-496 586 664 836 836+ 7.15/unit 230-250 314 453 527 696 254 318 477 530: 53G+ 3/unit! 330 335 405 430 450 + 1/unit 227 250 273 296 320 + 1.80/unit 211 211 279 357 435 + 2/unit 173-294 339 394 438 438 + 1.25/unit 371-390 449 507 546 546+ 4/unit 212 212 212 212 212 *Will be raising fees in FY 2019, data in table is current FY 2018 fee. Pool Licenses Potential additional revenue with proposed increases: $16,479 The increase in Traveler's Accommodations, likewise, leads to an increase in pools. This places an increased demand on staff time to provide inspections and the education needed to operate a safe and clean pool facility. A lower increase was added for establishments who only have a single pool. County 1st pool (8%) 2nd pool (20%) add'I pools (30%) Multnomah* 740 740 260 Curry 683 426 426 Benton* 683 519 519 Deschutes (proposed) 647 432 3$F Washington* 469 373 373 Deschutes (current) 599 360 297 Coos* 481 281 281 Jackson 461 373 373 Marion* 383 250 250 *Will be raising fees in FY 2019, data in table is current FY 2018 fee. Remaining Environmental Health Fees 18% flat increase: unless otherwise soecifiedl • School Inspections • Foster/Daycare Centers • Plan Reviews • Food Handlers Cards 0% increase • Temporary Restaurants (12% flat increase) • RV Parks 10-30% increases (only 18 in the County) Potential additional revenue with proposed increases: $12,561 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 Work Session of June 13, 2018 DATE: June 7, 2018 FROM: Peter Gutowsky, Community Development, 541-385-1709 TITLE OF AGENDA ITEM: Marijuana Regulatory Assessment / Preliminary Amendments The Board directed staff to schedule a follow-up work session to continue discussing potential revisions to Deschutes County's marijuana regulations. TO: Board of County Commissioners FROM: Nick Lelack, AICP, Director Peter Gutowsky, AICP, Planning Manager Tanya Saltzman, AICP, Associate Planner DATE: June 7, 2018 SUBJECT: Marijuana Regulatory Assessment / Preliminary Amendments BACKGROUND Since the release of the iviarquana Regulatory Assessment on April 2, 2^018, the Board of County Commissio^Hers (Board) has conducted five work sessions to discuss programmatic changes to regulating and enforcing marijuana production on rural lands. The Board recently directed staff to: • Submit letters to the Oregon Water Resources Department (OWRD) and Oregon Health Authority (OHA) to verify the cause of groundwater declines in Alfalfa and Tumalo, and confirm inspection and monitoring protocols for medical marijuana grow sites in unincorporated Deschutes County; and, • Draft preliminary amendments to Deschutes County marijuana regulations. As of the date of this memorandum, staff has not received responses from OWRD and OHA. The Board respectfully requested a response from both agencies by June 4. OWRD LETTER Tom Blyer, OWRD Director responded to the Board's inquiries (Attachment A). Ill. PRELIMINARY MARIJUANA AMENDMENTS Overview of Changes Based on the issues discussed at the work sessions, staff prepared preliminary amendments for the Board's consideration with the expectation that the Board may want to initiate a public hearing to gather formal input. The amendments are more restrictive than Deschutes County's existing marijuana regulations. Several notable changes include: 0 Excluding marijuana production and processing in the Multiple Use Agricultural Zone. • Increasing minimum separation distances to a %: mile for federal lands, local governments that opted out of regulating marijuana, Redmond Urban Reserve Area, and approved marijuana production sites.' • Increasing requirements for odor and noise mitigation.Z Staff did not modify Maximum Mature Plant Canopy. Outside of Clackamas County, which applies maximum buildable floor area only in their Farm and Forest 10 -acre and Forest 5 -Acre zones, counties in Oregon, Washington, Colorado, and California require applicants to not exceed mature canopy amounts authorized by State law.' The Board also requested additional information on Trip Generation Studies. The Institute of Traffic Engineers (ITE) does not have a land use category for marijuana production or processing to determine trip generation rates. Deschutes County is currently using "warehouse" for marijuana production and "manufacturing" for marijuana processing. Most of the questions from the public center around warehousing. To resolve the question, a study of 3 to 5 local marijuana production sites could result in a local trip generation rate. This would then be applied to future marijuana production applications to determine if traffic volumes and system development charges are applicable. The cost of a trip generation study is approximately $10,000 to $15,000. List of Preliminary Modified Amendments The following lists summarizes amendments to Deschutes County Code (DCC) Chapter 9.12, Right to Farm, DCC Chapter 18.24, Redmond Urban Reserve Area Combining Zone, DCC Chapter 18.116, Supplementary Provisions, and DCC Chapter 18.124.060, Site Plan Approval Criteria 1 Outside of Humboldt County, California and Ouray County, Colorado, density caps are not utilized. In Humboldt, there is a cap on the number of permits and acres allowable for commercial cultivation in each watershed based on an Environmental Impact Report. Separation distances achieve the same purpose as a density cap and are recognized as a conventional zoning tool for regulating high intensity land uses. z Sustained noise does not appear in most zoning codes. Monterey County has a standard of 55 dBA for 30 minutes per hour or an L(50) level of 55 dBA. In other words, the Noise Ordinance states that no noise level should exceed 55 dBA for more than fifty percent of a given period. Clackamas County requires HVAC equipment and generators to not produce noise exceeding 50 dBA at the lot line. Alternatively, Humboldt County requires generators at the property to produce noise no higher than 60 dBA. It is important to acknowledge that Deschutes County's requirement is 30 dBA measured at any property line between 10:00 p.m. and 7:00 a.m. the following day. This level is commensurate with a whisper, quiet rural night time or a library. 3 Deschutes County's existing mature canopy provisions followed a similar framework to OLCC's Recreational Marijuana Rules. See OAR 845-025-2000 to OAR 845-025-2080. "Canopy" means the surface area utilized to produce mature marijuana plants calculated in square feet and measured using the outside boundaries of any area that includes mature marijuana plants including all of the space within the boundaries. During OLCC's application process, an application is required to designate the growing area or areas, which can be any shape but cannot be larger than the total square footage allowed depending on the tier and growing method (indoor, outdoor or mixed). All portions of any mature, flowering plant must be contained within the boundaries of the designated canopy area(s). OAR 845-025-2040 Production Size Limitations (1) Maximum Canopy Size Limits. (a) Indoor Production. (A) Micro tier I: Up to 625 square feet. (B) Micro tier II: 626 to 1250 square feet. (C) Tier I: 1251 to 5000 square feet. (D) Tier II: 5,001 to 10,000 square feet. (b) Outdoor production. (A) Micro tier I: Up to 2,500 square feet. (B) Micro tier II: 2501 to 5000 square feet. (C) Tier 1: 5001 to 20,000 square feet. (D) Tier II: 20,001 to 40,000 square feet. http://www.oregon.gov/olcc/`mari*uana/DocumentS/Rules/OAR 845 Div 25 Recreational Mari' uana.pdf -2- DCC Chapter 9.12, Right to Farm (Attachment B). DCC 9.12.020 - Clarified the scope of the Right to Farm Ordinance does not apply to marijuana production operations whether permitted by Deschutes County, Oregon Liquor Control Commission, Oregon Health Authority, or otherwise. DCC Chapter 18.24, Redmond Urban Reserve Area Combining Zone (Attachment C). DCC 18.24.030 — Prohibited marijuana production and processing in the Redmond Urban Reserve Area Combining Zone. DCC 18.116.330. Marijuana Production, Processing, and Retailing (Attachment D) DCC 18.116.330(A)(1) and (2) — Removed MUA-10 zone from zones permitting marijuana production and processing. DCC 18.116.330(B)(1) — Removed MUA-10 zone from mariivana production and processing standards. DCC 18.116.330(B)(2) — Removed MUA-10 zone from indoor production and processing standards. DCC 18.116.330(B)(4) — Removed Maximum Building Floor Area standards for MUA-10 zone. DCC 18.116.330(6)(, 5)(a) - Increased setback distances from lot lines for marijuana production and processing from 100 feet to 200 feet. DCC 18.116.330(13)(&5)(b) - Increased setback distances from an off-site dwelling for marijuana production and processing from 300 feet to 500 feet. DCC 18.116.330(13)(65)(c) - Removed setback exception. DCC 18.116.330(13)(76)(a) -Applied a % mile separation distance from Redmond Urban Reserve Area, federal lands, local governments that have opted out of regulating marijuana and approved marijuana production sites. DCC 18.116.330(13)(98)(a) - Clarified indoor lighting shall not be visible outside a building from sundown to sunup. DCC 18.116.330(6)(489) - Strengthened odor control measures. DCC 18.116.330(13)(4110) - Strengthened noise control measures. DCC 18.116.330(B)(4411)(a) — Clarified all marijuana uses, buildings, structures, fences, and storage and parking areas, whether a building permit is required or not, in the Landscape Management Combining Zone, shall comply with and require Landscape Management Combining Zone approval. DCC 18.116.330(13)(4312) - Strengthened water use requirements. DCC 18.116.330(B)(14) - Strengthened utility requirements. DCC 18.116.330(6)(4716) — Added a requirement to Secure Waste Disposal for a statement describing how any water runoff is being addressed. DCC 18.116.330(B)(18) — Removed subsection outlining residency requirements for MUA-10 zone. DCC 18 116 330(B)(18)(b) and (c) — Removed references to MUA-10 in Prohibited Uses. DCC 18.116.330(D) — Added Inspections to Annual Reporting. DCC 18.116.330(D)(d) — Added condition of approval that an applicant must consent in writing to allow Deschutes County to randomly and without prior notice, up to four (4) times per calendar year, inspect the premises to ascertain the extent and effectiveness of for odor control. DCC 18.116.330(D)(gf) — Added documentation that System Development Charges have been paid. -3- DCC 18.116.340. Marijuana Production Registered by OHA (Attachment D) DCC 18.116.340(B)(a) — Clarified indoor lighting shall not be visible outside a building from sundown to sunup. DCC 18.116.340(D) — Referenced the requirements of DCC 18.116.330(A -C -B) for new marijuana production registered by OHA on or after June 1, 2016. DCC 18.116.340(D)(3) - Removed Maximum Building Floor Area standards for MUA-10 zone. DCC 18.116.340(1))(43)(a) - Increased setback distances from lot lines for marijuana production and processing from 100 feet to 200 feet. DCC 18.116.340(1))(43)(b) - Increased setback distances from an off-site dwelling for marijuana production and processing from 300 feet to 500 feet. DCC 18.116.340(1))(43) - Removed setback exception. DCC 18 116 340(D)(4)(a) - Removed MUA-10 zone from indoor production and processing standards DCC 18.116.3-38340(D)(76)(a) - Applied a %: mile separation distance from Redmond Urban Reserve Area, federal lands, local governments that have opted out of regulating marijuana and approved marijuana production sites. DCC 18.116.340(D)(488) — Added Inspections to Annual Reporting. DCC 18.116.340(D)(448)(d) — Added condition of approval that an applicant must consent in writing to allow Deschutes County to randomly and without prior notice, up to four (4) times per calendar year, inspect the premises to ascertain the extent and effectiveness of for odor control. DCC 18.116.330(D)(488)(f) —Added documentation that System Development Charges have been paid. DCC 18.116.340(D)(9) - Removed subsection outlining residency requirements for MUA-10 zone. DCC 18.116.340(D)(9)(b) and (c) - Removed references to MUA-10 in Prohibited Uses. DCC Chapter 18.124.060, Site Plan Approval Criteria (Attachment Q. DCC 18.124.060—Added a provision that proposed development shall relate harmoniouslyto the natural and man-made environment and existing development, minimizing visual impacts and preserving natural features including views and topographical features.' IV. Measure 56 Notices In the November 1998 general election, Oregon voters approved Ballot Measure 56 (BM 56). The measure requires cities and counties to provide affected property owners with notice of a change in zoning classification; adoption or amendment of a comprehensive plan; or adoption or change of an ordinance in a manner that limits or prohibits previously allowed uses. Amendments to Deschutes County's marijuana regulations will trigger BM 56 notice to approximately 5,500 property owners with properties larger than five acres in the Exclusive Farm Use and Multiple Use Agricultural zones. A BM 56 notice will cost several thousand dollars to produce and mail. Staff can return at a work session with a mailing estimate if the Board decides to formally initiate the text amendments. ' This amendment is based on the Board's interpretation in 247-17-000803-A. -4- V. Next Steps / Public Process Based on Board direction at this work session, staff can finalize the text amendments and schedule a follow-up work session to discuss: 1. Finalizing the preliminary text amendments; 2. Initiating the draft text amendments; and 3. Confirming public hearing and adoption processes. Attachments: A. OWRD Letter B. DCC Chapter 9.12 amendments C. DCC Chapter 18.24 amendments D. DCC Chapter 18.116 amendments E. DCC Chapter 18.124 amendments -5- Attachment A �v regon ' Kate Brown, Governor June 1, 2018 Deschutes County Board of Commissioners 1300 NW Wall Street Bend, Oregon 97703 BOARD 0i= C(1t.4f�4j:;S�{jiU(SS ADIt4lNI51 [1. JON Water Resources Department North Mall Office Building _ 725 Summer St NE, Suite A Salem, OR 97301 Phone (503) 986-0900 Fax (503) 986-0904 www.wrd.state.or.us RE: Groundwater impacts in Greater Alfalfa and Tumalo Areas, Deschutes County, Oregon Dear Commissioners, Thank you for contacting us regarding concerns related to water use and marijuana operations. We received your letter on May 14, 2018, and have attempted to provide you with as much of the information as we could collect given the short turnaround time. For background, and as you likely know, the District 11 watermaster's office covers Deschutes County, as well as portions of Crook and Jefferson Counties. This watermaster district encompasses 8,576 square miles and manages 3,041 water rights across the district. The District 11 office houses one watermaster, who is responsible for water management and distribution for the entire area. In addition, a state - funded regional assistant watermaster (serving watermaster districts 11,12 -Lake, and 17 -Klamath) also assists with water management for this area. With funding provided by Deschutes County, Jefferson County, and Crook County, the office is also supported by a county -funded assistant watermaster. According to the April 2018 Statistical Snapshot of medical marijuana grow sites; there are 863 grow sites in Deschutes County. Based on the statewide snapshot of patients per grow site address, more than 70 percent of the grow sites across the state are for one registered patient, and more than 87 percent of the grow sites have one or two patients registered. In regards to recreational marijuana, as of May 23, 2018, there were 73 producer applications submitted in Deschutes County (this does not reflect the number that has been approved). I understand that your questions are specific to the Tumalo and Alfalfa areas in Deschutes County. After receiving your letter, our staff visited the nine recreational grow sites in the Alfalfa area that were identified by the County. All nine have submitted applications to OLCC. Seven of the nine are not growing yet. The two that are growing have groundwater rights, which have flowmeters in place and appear to be in compliance with their water rights. Both are using existing groundwater rights via a transfer. Based on their flowmeters, groundwater use for these two sites was estimated to be less than eight acre-feet so far. Eight acre-feet is approximately the amount of water that would be used to irrigate three acres of alfalfa or pasture grass during one irrigation season. Staff have not yet had the opportunity to visit the four sites in the Tumalo area. We will follow up once those visits have been completed. M Deschutes County Board of Commissioners June 1, 2018 Page 2 You requested information about refinements to Deschutes County's marijuana program relating to land use regulations. Some counties have required land use applicants to provide evidence from the watermaster that they have a legal source of water, prior to obtaining land use approval. We have no position on this approach, but rather note is as an option that some counties have taken. The Department is aware of the continued concerns across the state over ensuring that marijuana operations legally use water. Your questions related to abuse of the system mostly focus on grow sites that have obtained water rights; however, our concerns arise mostly from recreational producers and commercial medical marijuana growers that do not have a water right. In some, but not all instances, these operations may be using water from an unauthorized source. Individuals that believe someone is illegally using water should provide that information to the watermaster's office for investigation. In recognition of the agency's continued staffing constraints and the need for further work to address water concerns related to marijuana, the Department is proposing a budget package for the 2019 legislative session that would provide additional staff to investigate complaints and review marijuana producers' sources of water. We are also proposing an additional watermaster that would reduce the size of watermaster District 11, providing better enforcement coverage for the area. We appreciate Deschutes County's support of water management and the continued partnership between our entities. Towards that end, we share a common goal of ensuring that all uses are in compliance with Oregon's water laws. We understand that this information does not address all of your questions and ask that you appoint one of your staff as a point of contact to work with our staff to follow up on any additional outstanding matters. My staff, Racquel Rancier, Senior Policy Coordinator, will be the point person for coordinating any follow up from our agency with your staff. She can be reached at racouel.r.rancier@ore og n.ao_v. Alternatively, you can continue to coordinate with Kyle Gorman in our regional office. Sincerely, � wl Thomas M. Byler Director Cc: Tammy Phil Tony Dave Doyle Nick Lelack Peter Gutowsky Sharon Attachment B Chapter 9.12. RIGHT TO FARM 9.12.020. Purpose and Scope. 9.12.020. Purpose and Scope. A. It is the purpose of DCC 9.12 to protect farm and forest -based economically productive activities of Deschutes County in order to assure the continued health, safety and prosperity of its residents. Farm and forest uses sometimes offend, annoy, interfere with or otherwise affect others located on or near farm and forest lands. Deschutes County has concluded in conformance with ORS chapter 30 that persons located on or near farm and forest lands must accept resource uses and management practices. B. DCC 9.12 is intended to limit the availability of remedies based on nuisance or trespass, rights of action and claims for relief and issuance of citations for violations over which Deschutes County has jurisdiction, when they otherwise would either have an adverse impact on farm and forest uses that Deschutes County seeks to protect, or would impair full use of the farm and forest resource base within Deschutes County. BX. ScopeDCC Chapter 9.12 (The Deschutes County light To Farm Ordinance)does not apply, to, Lnar�gglla _ px_ociuyiorl operations vvh_c thc,1__, ermitted by DeschutesCount y_y Ut et �n _I,icluor Control Commission, CDregon l ealt iliuthozit ot_het_wise. (Ord. 2018-xxx §x, 2018; Ord. 2003-021 §21, 2003; Ord. 95-024 §2, 1995) Chapter 9.12 Attachment C Chapter 18.24 REDMOND URBAN RESERVE AREA COMBINING ZONE 18.24.030. Conditional Uses Permitted; Prohibition. 18.24.030. Conditional Uses Permittedg Pr®h>thtl2n. A. Subject to the prohibitions provided for in I)CC 18.24.0.30(k3��uses permitted conditionally in the RURA Combining Zone shall be those identified as conditional uses in the underlying zoning districts. Conditional uses shall be subject to all conditions of those zones as well as the requirements of this chapter. _ he following uses are prohibited and not permitted 1n_t11e RtJRA C'ombr,nim-) Zone: B. T _ _ 1 _Mariivana.. Droduction;_and 2. Na ijuana_proccssn�.. (Ord. 2018-xxx §x, 2018) Chapter 18.24 Attachment D -9- Chapter 18.116. SUPPLEMENTARY PROVISIONS 18.116.330 Marijuana Production, Processing, and Retailing 18.116.340 Marijuana Production Registered by the Oregon Health Authority (OHA) 18.116.330. Marijuana Production, Processing, and Retailing A. Applicability. Section 18.116.330 applies to: 1. Marijuana Production in the EFU, ML'A---i-0;-and RI zones. 2, Marijuana Processing in the EFU, MU -A-4--0 TeC, TeCR, TuC, TuI, RI, and SUBP zones 3. Marijuana Retailing in the RSC, TeC, TeCR, TuC, TuI, RC, RI, SUC, SUTC, and SUBP zones. 4. Marijuana Wholesaling in the RSC, TeC, TeCR, TuC, RC, SUC, and SUBP zones. B. Marijuana production and marijuana processing. Marijuana production and marijuana processing shall be subject to the following standards and criteria: 1. Minimum Lot Area. a. In the EFU and--M-UA-4 0 -zones, the subject legal lot of record shall have a minimum lot area of five (5) acres. 2. Indoor Production and Processing. MUS 1 �;-z�'r�C �� g�r��szgu1iy x�1gid-',�alls "te`d. a. In the EFU zone, marijuana production and processing shall only be located in buildings, including greenhouses, hoop houses, and similar structures. b. In all zones, marijuana production and processing are prohibited in any outdoor area. 3. Maximum Mature Plant Canopy Size. hi the EFU zone, the maximum canopy area for mature marijuana plants shall apply as follows: a. Parcels from 5 acres to less than 10 acres in lot area: 2,500 square feet. b. Parcels equal to or greater than 10 acres to less than 20 acres in lot area: 5,000 square feet. The maximum canopy area for mature marijuana plants may be increased to 10,000 square feet upon demonstration by the applicant to the County that: i. The marijuana production operation was lawfully established prior to January 1, 2015; and ii. The increased mature marijuana plant canopy area will not generate adverse impact of visual, odor, noise, lighting, privacy or access greater than the impacts associated with a 5,000 square foot canopy area operation. c. Parcels equal to or greater than 20 acres to less than 40 acres in lot area: 10,000 square feet. d. Parcels equal to or greater than 40 acres to less than 60 acres in lot area: 20,000 square feet. e. Parcels equal to or greater than 60 acres in lot area: 40,000 square feet. bui-2d g- car-ar a Ivo --f a- a p n'��gdp � o�n -1 su � ci prepe -y sha-1-be ...._._..P els 1-0_aere- in-lo1-area--25504-square-fii- 4 --P eek- qual_ 8- 54. Limitation on License/Grow Site per Parcel. No more than one (1) Oregon Liquor Control Commission (OLCC) licensed marijuana production or Oregon Health Authority (OHA) Chapter 18.116 registered medical marijuana grow site shall be allowed per legal parcel or lot. 65. Setbacks. The following setbacks shall apply to all marijuana production and processing areas and buildings: a. Minimum Yard Setback/Distance from Lot Lines: 2.4-00 feet. b. Setback from an off-site dwelling: X300 feet. For the purposes of this criterion, an off-site dwelling includes those proposed off-site dwellings with a building permit application submitted to Deschutes County prior to submission of the marijuana production or processing application to Deschutes County. e__.._F,-eeeptian= d-by4he 1'1 i I i ares-13�€,�y p vi d tl i -deman ates-te-rcd-de� setlbae-ks ward equal a�a%ea artiat��a��al aa�ise lik�tit� pria; a aceess--impar; s: 76. Separation Distances. Minimum separation distances shall apply as follows: a. The use shall be located a minimum of 400-9-2,640 feet from: i. A public elementary or secondary school for which attendance is compulsory under Oregon Revised Statutes 339.010, et seq., including any parking lot appurtenant thereto and any property used by the school; ii. A private or parochial elementary or secondary school, teaching children as described in ORS 339.030(1)(a), including any parking lot appurtenant thereto and any property used by the school; iii. A licensed child care center or licensed preschool, including any parking lot appurtenant thereto and any property used by the child care center or preschool. This does not include licensed or unlicensed child care which occurs at or in residential structures; iv. A youth activity center; and v. National monuments and state parks,: yi,.._FubtieFoderal_lands _and vii. Redmond Urban_Reserv_e_,� viii.._The boundary of any local jurisdict' that I�as_opted out, of Oregon's recreational inar, Ii uana pro'anl-,_aIA zx,. Any other llot or_paa^cel app�ovcd. bf �schutes_C guilty fob .-zxzar�uan�t�oduot_iono b. For purposes of DCC 18.116.330(13)(76), all distances shall be measured from the lot line of the affected properties listed in DCC 18.116.330(B)(7-6)(a) to the closest point of the buildings and land area occupied by the marijuana producer or marijuana processor. c. A change in use of another property to those identified in DCC 18.116.330(13)(76) shall not result in the marijuana producer or marijuana processor being in violation of DCC 18.116.330(B)(76) if the use is: i. Pending a local land use decision; ii. Licensed or registered by the State of Oregon; or iii. Lawfully established. 87. Access. Marijuana production over 5,000 square feet of canopy area for mature marijuana plants shall comply with the following standards. a. Have frontage on and legal direct access from a constructed public, county, or state road; or b. Have access from a private road or easement serving only the subject property. c. If the property takes access via a private road or easement which also serves other properties, the applicant shall obtain written consent to utilize the easement or private road for marijuana production access from all owners who have access rights to the private road or easement. The written consent shall: i. Be on a form provided by the County and shall contain the following information; Chapter 18.116 l49 ii. Include notarized signatures of all owners, persons and properties holding a recorded interest in the private road or easement; iii. Include a description of the proposed marijuana production or marijuana processing operation; and iv. Include a legal description of the private road or easement. Lighting. Lighting shall be regulated as follows: a. Inside building lighting, including greenhouses, hoop houses, and similar structures, used for marijuana production shall not be visible outside the building from_sundown to sunup Ott p:n� i00 at tl flewi . b. Lighting fixtures shall be fully shielded in such a manner that all light emitted directly by the lamp or a diffusing element, or indirectly by reflection or refraction, is projected below the horizontal plane through the lowest light -emitting part. c. Light cast by exterior light fixtures other than marijuana grow lights shall comply with DCC 15. 10, Outdoor Lighting Control. Odor. As used in DCC 18.116.330(B)(9-10), building means the building, including greenhouses, hoop houses, and other similar structures, used for marijuana production or marijuana processing. Od_or_pEoducodby mariivana_production a1d_proccssin_� shall coniPt with the followizug_ a.Standard To prevent unreasonable_ interference. of neivIlbors use -and en_lovinent of their p opery, no adverse or noxious odors_shall_be detectable_b�yorld_the property line. b. Odor_control _plan_To ensure that the standard Stated in DCC 18.1_I6 33d(B)(9)_is continuous met, the applicant shall_ submit ail odor conte I plan l�renarod and stamped by a_mechanical engineer licensed in the Mate of Oregon that includes the followitl_ r.The mechanical ep6neef s -_qualifications and experience with system demon and operational audits of effective.. odor control andrniti atlon sy_stemss ii. _A detailed analvsis of the methodology_ that will be relied upori to effectively control odor on_the suhi.q t property - iii._ A de=tailed descriptionof any control systems that will be utilized�rrzcluding opera tional sell udulesand maintenance intervals, iv. ontiz 7ence n easurc s if any as_liec,t_of the odor control Dlan. fails or. is_n_ot followed, or if it otherwise,_ shown that the standard -stated _in DCC 18 11,6.330(jj),f_�)_ is not met, v. Testing protocols and intervals, and vi. Identification_ of the r�sponsil7le parties tasked _with _irxlplementmg each aspectof the odor controlp_larl. _ c. C.comoliance._..Olk oil cor pliance_with_the odors control__plan is mandatory and shall be ensured with a_per7zlit condition -of apL�rovalxbutcompli_ance with the odor control pian does_zxot supersede r:ecturrcd compliance with_ the stand_ard_set _ forth in DCC 18.1.1 Er.3 1 (4). If 1}tovided in.aljp icable state statutes, private, ac,tions_alle ).in_ nuisance or trrespass, associated with. odor impacts are authorized_ Modifications Modifications to the odor control _planShall bc_approv_ed-in the same manneras a modification to _a land use action 1) rsuant to DCC 22.36 040. a--The-)uil-d-itg-shall-- -equipped-with©f et e odes c rE71 y�� wh n s t t pr y r r r ase�r Icy it to r €�f z e bl�bo a r d e yi-nem-of4he4r pr opefty: b.-�zr�-o�1�r-�;or�tr�ol-sy�r�-i-�€�-e�n�-1�er�r�itt.�-orxly-after-11� a�p�ioa��t s�zl�r��its-a rr�-k�3��-r�a�c-13a�ri�al�t��r-lice-rseEl i3n-tl�,�ea�-r-e�nr demmm tratin tex� c epi n n �perati€�r�al a��ddit �f c vel L-.�ratio alC is �r.as�t-i��-f�aitl�rxoz��ls' ;� ander-n�joyr�n� �tl�ir=pr-eper-ty: Chapter 18.116 I' , a �eti�n� allirr t��z�ve car-trc�-aasc�rad� o<lcar- incus -are author4-z4 ifa � ,t 1 rov d-i-n-appiioable-s4-ate...sd tt— �: =�1� -oar-eot�tr=el-�'ster��-sl-mall .._-�oz�r�r-z��ore-fans-�=az��- sly a� l-b��-d-%orl�et-pninu to �C-'F,M} uwalent4( oluu of4h,-4�uiIdmI, (ler nazi-mUItipI+ed-b"Vidtl1 CF -W, or §r:�ttiT i fir u�i6i tt�tit i�1€�$h�%fir=til?nii tf3�L� k� �a� t�3 it°rf utvr E3�r reit ati-ozrtharr pi_ -A idc4-bv-¢i)--above-: e: — �1vstcz chap at1l tirr es be ztaind wor�C:a� ord shall k�o iz u. 1.110.Noise. Noise produced by marijuana production and marijuana processing shall comply with the following: fire -�ur�-aid-r�f�i�,�-fr-ens �r�ou-l�ar�ie-al-e�uzp3�rerrt-�asod-fsr--ltia�>-�Forr� �-il�tior�;-a-ir=cor�dit�a; odor=-eoratfana- and - prop ert-y-linebetween- 01 00,-p-.rn -arid 7-:00--a�in 41we--fc- Doyw-ing-day 4- Su -,min -ed -maiw-fron-i-mari~ivanaproduetion-is-exerupt-fry-prow-tion-,,-ofD-C-94-2 and -OR -S-30-34 ,-R�iglrt-ter-l=-arm,-biternait-t-ent--noise-ffrr a ;opt d farrrairrgtraeiieog is per -mitt l: a. Standard. To_ prevent unreasonable interference of neigllboEs' _use and en o nlent of their ._1 rpperty sustained_ noise shall not be _detectable beyond the pr erty.line above 30 d13( S} between 10_d0 prinand 7:00 am the lollowinp-day. I I^or purposes of DCC_l._8_l l6.330(i3)-1.10), "sust_ained_noise'_shall mean noise lasting more Than two continuous minutes or two total minutes in a one hou3_j)criod from mechanical eup ment used foz hat_illg�v_cntrlation air° condition, odor control fans ansialilar functions associated with rnarijuanaai_ocluction and hrocessin�. h.Noise control_ plan._ To ensure that the standard stated in DCC 18.1_16.330(B)(10)_ s continuouslyy met, the 1icant shall submit a noise control plan i)rcDarcd_and.stanll�cd by a mechanical engineer licensed in the State of_Oregon _that includes the follow*ngy: i. rl'11c oech lnrcal.erl*n7ee%'s ctualificatiorls aildexperrenre wit_h_system_desrg)aand ct eratlona_1_auciit of effective noise control and._nlrtigation systems. ii. A detailed analysis of the methodology that will be relied upon to effectively control noise on the subject.-p%operty_, iii. A detailed description of_anvnoise control systems, that will be utilized, _inclL�dit opSr_atiarlal sebedules.and maintenance intervals rv.C_oiltir erlce„rlleasures if a�l_y_a_spect of tlzc noise control plan mails of is not followed,- or if_it_is otherwise shown that the_standard stated in, LSCC 18 116.330(13)(10) is not ]net, v. _resting protocols and intervals;._ and v'.. Idendficatzon,of the. zcsponsibletlarties tasked with, irlvlerllentin each aspcct_of the noise control plan. c._ Con7phance.___Qn-boincoiupjia-ncc__with _the ploisc_control_plan , is mandatory arld_shall be er7sur c d with a ei llzt condition of approval, hutcorl�jlliance with the noise control plan does not su-ersedc_recilarzcd corlr�iliance_with the standard set forth in—I)CC 18.116.330(I3�(10). _if provided. in ap icablc state statutes, �rivate actions all el;ing nuisance, or _trespass associated with,odor-impacts are authorized_ d.Modifications .Modifications to the noise _control _plan shall beaproved.in the same manner. as a_modification to a land use action pursuant to I CC 22.36.040._ -PH 1.,. Screening and Fencing. The following screening standards shall apply to greenhouses, hoop houses, and similar non -rigid structures and land areas used for marijuana production and processing: Chapter 18.116 a. All mariivana uses buildius, structures. fenc ess,and_stora�e and .parkir_eas, whether a_huildin _etm t is required or'not inthe _I and—ape M,a_ria ernexlt Comlainin Zonetshall c in�ly with and recur_- b* -t -to -DCC 18.84, Landscape Management Combining Zone approval;-if-appliaable. b. Fencing shall be finished in a muted earth tone that blends with the surrounding natural landscape and shall not be constructed of temporary materials such as plastic sheeting, hay bales, tarps, etc., and shall be subject to DCC 18.88, Wildlife Area Combining Zone, if applicable. c. Razor wire, or similar, shall be obscured from view or colored a muted earth tone that blends with the surrounding natural landscape. d. The existing tree and shrub cover screening the development from the public right-of- way or adjacent properties shall be retained to the maximum extent possible. This provision does not prohibit maintenance of existing lawns, removal of dead, diseased or hazardous vegetation; the commercial harvest of forest products in accordance with the Oregon Forest Practices Act; or agricultural use of the land. 4-412. Water. Water use from _al source_ for z 7arijual a pt aduction-shall_coo7pl �n ith all apl3licable state statutes and regulations. -The applicant shall provide: a. A copy of a water right permit, certificate, or other water use authorization from the Oregon Water Resource Department; or b. A will serve statement that water is supplied from a public or private water provider, along with a will haul statementjncludin4 the name and contact information of the water providerhauler; or c._„_, Proof from the Oregon Water Resources Department that the water to be used is from a source that does not require a water right. e:d,.._if multiple sources water are beim proposed during the atythe applicant shall provide to_of ftot�l,the controllingentity that the_waterr_can beapplied to_tnattjuaaa t oduc,tion. 413.Fire protection for processing of cannabinoid extracts. Processing of cannabinoid extracts shall only be permitted on properties located within the boundaries of or under contract with a fire protection district. l- .I4.Utility Verification. Utilit,v statements identifyitlt ilie_ol osed operation"._ot_oeY ati,onal characterzsttc s such as_rcquired_elc ctrcal load and tinning of such electrical loads—and—Aa statement from each utility company proposed to serve the operation, stating that each such company is able and willing to serve the operation, shall be provided. -145.15. Security Cameras. If security cameras are used, they shall be directed to record only the subject property and public rights-of-way, except as required to comply with requirements of the OLCC or the OHA. -PI6. Secure Waste Disposal. q. Marijuana waste shall be stored in a secured waste receptacle in the possession of and under the control of the OLCC licensee or OHA Person Responsible for the Grow Site (PRMG). h._ !_statement is also required descr=ibin�4 how _any water runoff is_be' addressed. Ps � id ncy—fin the '/L 18- t o minir n--af ane—ofd3e lowi � l reside in a d -N elliag,.uni%on;he t prepett� b—�-A-holder of awl C� e �m ja ana t� to ��; prowtded %bit the lie applies to- tt 5uk }ect pt pert -or c-,: -- A pe** -oto --reg st-eyed-v,41h tk a.4A-- as a_per son dtsiVaflted to-ptodue,--in atijuanaby- a rC-gi S-try-id-en4ifieation -card e 14 er-; pro N,4-ded..that- the t pitr=atti-tin- -applie-s, - to -the -s bjeet pr-operft l 19,11,Nonconformance. All medical marijuana grow sites lawfully established prior to June 8, Chapter 18.116 2016 by the Oregon Health Authority shall comply with Ordinance 2016-015 andwi4h the provisions of DCC 18.116.330(B)(9) by September 8, 2016 and with the provisions of DCC 18.116.330(B)(10-12,16,17) by December 8, 2016. -2-01.8.-Prohibited Uses. a. In the EFU zone, the following uses are prohibited: i. A new dwelling used in conjunction with a marijuana crop; ii. A farm stand, as described in ORS 215.213(1)(r) or 215.283(1)(o), used in conjunction with a marijuana crop; iii. A commercial activity, as described in ORS 215.213(2)(c) or 215.283(2)(a), carried on in conjunction a marijuana crop; and ivy--Agri-tourism and other commercial events and activities in conjunction with a marijuana crop. K- -€ I -ewt --g-uses-am pr -bink i is ---Com-erc l ac4wiiies-in-eanj etion vv413 mai j a-erep: cls. In the EFU, AML 1-0; .and Rural Industrial zones, the following uses are prohibited on the same property as marijuana production: i. Guest Lodge. ii. Guest Ranch. iii. Dude Ranch. iv. Destination Resort. v. Public Parks. vi. Private Parks. vii. Events, Mass Gatherings and Outdoor Mass Gatherings. viii. Bed and Breakfast. ix. Room and Board Arrangements. C. Marijuana Retailing. Marijuana retailing, including recreational and medical marijuana sales, shall be subject to the following standards and criteria: 1. Hours. Hours of operation shall be no earlier than 9:00 a.m. and no later than 7:00 p.m. on the same day. 2. Odor. The building, or portion thereof, used for marijuana retailing shall be designed or equipped to prevent detection of marijuana plant odor off premise by a person of normal sensitivity. 3. Window Service. The use shall not have a walk-up or drive-thru window service. 4. Secure Waste Disposal. Marijuana waste shall be stored in a secured waste receptacle in the possession of and under the control of the OLCC licensee or OHA registrant. 5. Minors. No person under the age of 21 shall be permitted to be present in the building, or portion thereof, occupied by the marijuana retailer, except as allowed by state law. 6. Co -Location of Related Activities and Uses. Marijuana and tobacco products shall not be smoked, ingested, or otherwise consumed in the building space occupied by the marijuana retailer. In addition, marijuana retailing shall not be co -located on the same lot or parcel or within the same building with any marijuana social club or marijuana smoking club. 7. Separation Distances. Minimum separation distances shall apply as follows: a. The use shall be located a minimum of 1,000 feet from: i. A public elementary or secondary school for which attendance is compulsory under Oregon Revised Statutes 339.010, et seq., including any parking lot appurtenant thereto and any property used by the school; ii. A private or parochial elementary or secondary school, teaching children as described in ORS 339.030(1)(a), including any parking lot appurtenant thereto and any property used by the school; iii. A licensed child care center or licensed preschool, including any parking lot Chapter 18.116 appurtenant thereto and any property used by the child care center or preschool. This does not include licensed or unlicensed family child care which occurs at or in residential structures; iv. A youth activity center; v. National monuments and state parks; and vi. Any other marijuana retail facility licensed by the OLCC or marijuana dispensary registered with the OHA. b. For purposes of DCC 18.116.330(0)(7), distance shall be measured from the lot line of the affected property to the closest point of the building space occupied by the marijuana retailer. For purposes of DCC 18.116.330(C14)(7)(a)( vi), distance shall be measured from the closest point of the building space occupied by one marijuana retailer to the closest point of the building space occupied by the other marijuana retailer. c. A change in use to another property to a use identified in DCC 18.116.330(.0 D)(7), after a marijuana retailer has been licensed by or registered with the State of Oregon shall not result in the marijuana retailer being in violation of DCC 18.116.330(.01)(7). D. Inmeetions_and-Annual Reporting 1. An annual report shall be submitted to the Community Development Department by the real property owner or licensee, if different, each February 1, documenting all of the following as of December 31 of the previous year, including the applicable fee as adopted in the current County Fee Schedule and a fully executed Consent to Inspect Premises form: a. Documentation demonstrating compliance with the: i. Land use decision and permits. ii. Fire, health, safety, waste water, and building codes and laws. iii. State of Oregon licensing requirements. b. Failure to timely submit the annual report, fee, and Consent to Inspect Premises form or to demonstrate compliance with DCC 18.116.330(1=)(1)(a) shall serve as acknowledgement by the real property owner and licensee that the otherwise allowed use is not in compliance with Deschutes County Code; authorizes permit revocation under DCC Title 22, and may be relied upon by the State of Oregon to deny new or license renewal(s) for the subject use. c. Other information as may be reasonably required by the Planning Director to ensure compliance with Deschutes County Code, applicable State regulations, and to protect the public health, safety, and welfare. d. As _a condition of api3roval, the applicant must consent in writing to allow Deschutes County to randomly and without prior°not_lce, up to, foul ( times pet calendar year, inspect the premises to ascertain the extent and effectiveness of forodor control. �stcnlis)�-lk4a�-j�;ar�a-��l�l-t'-lam-tc� l�stzx3��li;;lrcd-Z�r�d-r��ir�r�-I>y-t1�-C-ora-�r� DeveloffW-nt e Conditions of Approval Agreement to be established and maintained by the Community Development Department e-. f. Documentation that System Develoment_Charges have been paid. f�g_This information shall be public record subject to ORS 192.502(17). (Ord. 2018-xxx fix, 2018; Ord. 2016-015 §10, 2016) 18.116.340. Marijuana Production Registered by the Oregon Health Authority (OHA) A. Applicability. Section 18.116.340 applies to: 1. All marijuana production registered by OHA prior to June 1, 2016; and 2. All marijuana production registered by OHA on or after June 12016 until the effective date of Ordinances 2016-015, 2016-16, 2016-17, and 2016-18, at which time Ordinances 2016- 015 through Ordinance 2016-018 shall apply. Chapter 18.116 B. All marijuana production registered by OHA prior to June 1, 2016 shall comply with the following standards by September 15, 2016: 1. Lighting. Lighting shall be regulated as follows: a. Inside building lighting, including greenhouses, hoop houses, and similar structures, used for marijuana production shall not be visible outside the building from 7:00 p.m. to 7:00 a.m. on the following day. b. Lighting fixtures shall be fully shielded in such a manner that all light emitted directly by the lamp or a diffusing element, or indirectly by reflection or refraction, is projected below the horizontal plane through the lowest light -emitting part. c. Light cast by exterior light fixtures other than marijuana grow lights shall comply with DCC 15. 10, Outdoor Lighting Control. C. All marijuana production registered by OHA prior to June 1, 2016 shall comply with the following standards by December 15, 2016: 1. Odor. As used in DCC 18.116.34_30(C B)(10-), building means the building, including greenhouses, hoop houses, and other similar structures, used for marijuana production or marijuana processing. a. The building shall be equipped with an effective odor control system which must at all times prevent unreasonable interference of neighbors' use and enjoyment of their property. b. An odor control system is deemed permitted only after the applicant submits a report by a mechanical engineer licensed in the State of Oregon demonstrating that the system will control odor so as not to unreasonably interfere with neighbors' use and enjoyment of their property. c. Private actions alleging nuisance or trespass associated with odor impacts are authorized, if at all, as provided in applicable state statute. d. The odor control system shall: i. Consist of one or more fans. The fan(s) shall be sized for cubic feet per minute (CFM) equivalent to the volume of the building (length multiplied by width multiplied by height) divided by three. The filter(s) shall be rated for the required CFM; or ii. Utilize an alternative method or technology to achieve equal to or greater odor mitigation than provided by i. above. e. The system shall be maintained in working order and shall be in use. 2. Noise. Noise produced by marijuana production and marijuana processing shall comply with the following: a. Sustained noise from mechanical equipment used for heating, ventilation, air condition, odor control, fans and similar functions shall not exceed 30 dB(A) measured at any property line between 10:00 p.m. and 7:00 a.m. the following day. b. Sustained noise from marijuana production is not subject to the Right to Farm protections in DCC 9.12 and ORS 30.395. Intermittent noise for accepted farming practices is however permitted. 3. Screening and Fencing. The following screening standards shall apply to greenhouses, hoop houses, and similar non -rigid structures and land areas used for marijuana production and processing: a. Subject to DCC 18.84, Landscape Management Combining Zone approval, if applicable. b. Fencing shall be finished in a muted earth tone that blends with the surrounding natural landscape and shall not be constructed of temporary materials such as plastic sheeting, hay bales, tarps, etc., and shall be subject to DCC 18.88, Wildlife Area Combining Zone, if applicable. Chapter 18.116 c. Razor wire, or similar, shall be obscured from view or colored a muted earth tone that blends with the surrounding natural landscape. d. The existing tree and shrub cover screening the development from the public right-of- way or adjacent properties shall be retained to the maximum extent possible. This provision does not prohibit maintenance of existing lawns, removal of dead, diseased or hazardous vegetation; the commercial harvest of forest products in accordance with the Oregon Forest Practices Act; or agricultural use of the land. 4. Water. The applicant shall provide: a. A copy of a water right permit, certificate, or other water use authorization from the Oregon Water Resource Department; or b. A statement that water is supplied from a public or private water provider, along with the name and contact information of the water provider; or c. Proof from the Oregon Water Resources Department that the water to be used is from a source that does not require a water right. 5. Security Cameras. If security cameras are used, they shall be directed to record only the subject property and public rights-of-way, except as required to comply with requirements of the OLCC or the OHA. 6. Secure Waste Disposal. Marijuana waste shall be stored in a secured waste receptacle in the possession of and under the control of the OLCC licensee or OHA Person Responsible for the Grow Site (PRMG). D. All new marijuana production registered by OHA on or after June 1, 2016 shall comply witlj DCC 18.116.3430(A -BC) and the following standards: 1. Shall only be located in the following zones a. EFU;_or b: _-MUA 1-0�.ax- c-.' b. x-c:b. Rural Industrial in the vicinity of Deschutes Junction. 2. Minimum Lot Area. a. In the EFU an -MI-3},10-zones, the subject property shall have a minimum lot area of five (5) acres. 3:-.-Maxnauin-13,41 ng 4400r--ne.a.-In-th-MTJA__1-0--z one ..the- .z -axi3tu,.r;...1build-iin 41oor area yhull-lam 43. Setbacks. The following setbacks shall apply to all marijuana production areas and buildings: a. Minimum Yard Setback/Distance from Lot Lines: -1200 feet. b. Setback from an off-site dwelling: 5300 feet. For the purposes of this criterion, an off-site dwelling includes those proposed off-site dwellings with a building permit application submitted to Deschutes County prior to submission of the marijuana production or processing application to Deschutes County. Exee--ptian educt ons e-granted -ad--the-c is retion of4he-P-1aiHnDTee4e,r-ef 4ieamigs43od previded-the-applm -i-deman sn=ates-t ha+A& }privacy;-aan-ae-s-nnpwts-. 5_a_�. Indoor Production and Processing. f�tl�a-wr�clo�ed build-��;s� ��-�o��u-tz��al-o��€gat-��ted-o�zgia�;-r-i�ialls-a�of prohi-bited. Chapter 18.116 a. In the EFU zone, marijuana production shall only be located in buildings, including greenhouses, hoop houses, and similar structures. b. In all zones, marijuana production is prohibited in any outdoor area. 65. Maximum Mature Plant Canopy Size. In the EFU zone, the maximum canopy area for mature marijuana plants shall apply as follows: a. Parcels from 5 acres to less than 10 acres in lot area: 2,500 square feet. b. Parcels equal to or greater than 10 acres to less than 20 acres in lot area: 5,000 square feet. The maximum canopy area for mature marijuana plants may be increased to 10,000 square feet upon demonstration by the applicant to the County that: i. The marijuana production operation was lawfully established prior to January 1, 2015; and ii. The increased mature marijuana plant canopy area will not generate adverse impact of visual, odor, noise, lighting, privacy or access greater than the impacts associated with a 5,000 square foot canopy area operation. C. Parcels equal to or greater than 20 acres to less than 40 acres in lot area: 10,000 square feet. d. Parcels equal to or greater than 40 acres to less than 60 acres in lot area: 20,000 square feet. e. Parcels equal to or greater than 60 acres in lot area: 40,000 square feet. ?6. Separation Distances. Minimum separation distances shall apply as follows: a. The use shall be located a minimum of 1000--2;640 feet from: i. A public elementary or secondary school for which attendance is compulsory under Oregon Revised Statutes 339.010, et seq., including any parking lot appurtenant thereto and any property used by the school; ii. A private or parochial elementary or secondary school, teaching children as described in ORS 339.030(1)(a), including any parking lot appurtenant thereto and any property used by the school; iii. A licensed child care center or licensed preschool, including any parking lot appurtenant thereto and any property used by the child care center or preschool. This does not include licensed or unlicensed child care which occurs at or in residential structures; iv. A youth activity center; and v. National monuments and state parks, vi. -P -li`cFederal_larx�is a 1 vii._ Redmond Urban Reser_ve.Areas viii_"I'he boundary of anv localdux s�liction. that has acted out of Ore on`s_recreadonal marrinana prgram, and ix. Any other lot or moved_by_pcscilutes Countvfor- flauana_prodrz(gian,.. b. For purposes of DCC 18.116.34-30(1)E)('16), all distances shall be measured from the lot line of the affected properties listed in DCC 18.116.34-�0(I_)(76)(a) to the closest point of the buildings and land area occupied by the marijuana producer or marijuana processor. c. A change in use of another property to those identified in DCC 18.116.3430(PI-I)(76) shall not result in the marijuana producer or marijuana processor being in violation of DCC 18.116.330(B)(.76) if the use is: i. Pending a local land use decision; ii. Registered by the State of Oregon; or iii. Lawfully established. 87. Access. Marijuana production over 5,000 square feet of canopy area for mature marijuana plants shall comply with the following standards. Chapter 18.116 10 a. Have frontage on and legal direct access from a constructed public, county, or state road; or b. Have access from a private road or easement serving only the subject property. c. If the property takes access via a private road or easement which also serves other properties, the applicant shall obtain written consent to utilize the easement or private road for marijuana production access from all owners who have access rights to the private road or easement. The written consent shall: i. Be on a form provided by the County and shall contain the following information; ii. Include notarized signatures of all owners, persons and properties holding a recorded interest in the private road or easement; iii. Include a description of the proposed marijuana production or marijuana processing operation; and iv. Include a legal description of the private road or easement. 9-. _ Res-idene -ono e€th aollsw i �si3 t1€o id ins d� Bilin .. 3 t on the -s 1 �e et a:--An-o-wner of-he-sulo3ea- operty;-or t� het ,oto -r isttcred � tip the CI t sas a �sorz d� i taated to rc�dt e i �ariju 3 try -a A stty= ids z if atic, c a -dl der r -o Ad ...t xat i o -legis =alio �-a dies t-0 i� t t Pro'Pelle. -108.lnspeetions and Annual Reporting. An annual report shall be submitted to the Community Development Department by the real property owner or licensee, if different, of marijuana production zc iste-ed 17y_ HA�each February 1, documenting all of the following as of December 31 of the previous year, including the applicable fee as adopted in the current County Fee Schedule and a fully executed Consent to Inspect Premises form: a. Documentation demonstrating compliance with the: i. Land use decision and permits. ii. Fire, health, safety, waste water, and building codes and laws. iii. State of Oregon licensing requirements. b. Failure to timely submit the annual report, fee, and Consent to Inspect Premises form or to demonstrate compliance with DCC 18.116.3 30(C)(8) shall serve as acknowledgement by the real property owner and licensee that the otherwise allowed use is not in compliance with Deschutes County Code; authorizes permit revocation under DCC Title 22, and may be relied upon by the State of Oregon to deny new or license renewal(s) for the subject use. c. Other information as may be reasonably required by the Planning Director to ensure compliance with Deschutes County Code, applicable State regulations, and to protect the public health, safety, and welfare. d. Mar a-(-owdtrl V4,aR-to-be t-ahtinhed-afd mam trtined--hy the --Go rrnity De--�pngei-A t e parte t:As. a condition of apPt_ovalYl1e_apnlicant trust consent in ritinp-- to allow Deschutes County_to randomly and without prior notice, up to four (4) times i)er caletida at,_it1s ect the _tc rnises to ase ct tain_t11c extent atici e_ff�cti_veness of for odor control. e. —Conditions of Approval Agreement to be established and maintained by the Community Development Department. f..-.-- Documentation that_S_y_steln Develo ttut h9, es.. haves heemnpa_i_d._ e:gThis information shall be public record subject to ORS 192.502(17). 449,.Prohibited Uses. a. In the EFU zone, the following uses are prohibited: i. A new dwelling used in conjunction with a marijuana crop; ii. A farm stand, as described in ORS 215.213(1)(r) or 215.283(1)(0), used in conjunction with a marijuana crop; Chapter 18.116 iii. A commercial activity, as described in ORS 215.213(2)(c) or 215.283(2)(a), carried on in conjunction a marijuana crop; and iv. Agri-tourism and other commercial events and activities in conjunction with a marijuana crop. ami-3 aet titsa-n--cs1ti7'ation--"'44h--(ami-*se-v, n -ana-wnc4ion eb. In the EFU;-NIU-- A--fig_ and Rural Industrial zones, the following uses are prohibited on the same property as marijuana production: Guest Lodge. i. Guest Ranch. ii. Dude Ranch. iii. Destination Resort. iv. Public Parks. v. Private Parks. vi. Events, Mass Gatherings and Outdoor Mass Gatherings. vii. Bed and Breakfast. viii. Room and Board Arrangements. (Ord. 2018-xxx §x, 2018; Ord. 2016-019 § 1, 2016) Chapter 18.116 12 Attachment E -so- Chapter 18.124. SITE PLAN REVIEW 18.124.060. Approval Criteria. 18.124.060. Approval Criteria. Approval of a site plan shall be based on the following criteria: A. The proposed development shall relate harmoniously to the natural and man-made environment and existing development, minimizing visual impacts and preserving natural features including views and topographical features. B. The landscape and existing topography shall be preserved to the greatest extent possible, considering development constraints and suitability of the landscape and topography. Preserved trees and shrubs shall be protected. C. The site plan shall be designed to provide a safe environment, while offering appropriate opportunities for privacy and transition from public to private spaces. D. When appropriate, the site plan shall provide for the special needs of disabled persons, such as ramps for wheelchairs and Braille signs. E. The location and number of points of access to the site, interior circulation patterns, separations between pedestrians and moving and parked vehicles, and the arrangement of parking areas in relation to buildings and structures shall be harmonious with proposed and neighboring buildings and structures. F. Surface drainage systems shall be designed to prevent adverse impacts on neighboring properties, streets, or surface and subsurface water quality. G. Areas, structures and facilities for storage, machinery and equipment, services (mail, refuse, utility wires, and the like), loading and parking and similar accessory areas and structures shall be designed, located and buffered or screened to minimize adverse impacts on the site and neighboring properties. H. All above -ground utility installations shall be located to minimize adverse visual impacts on the site and neighboring properties. I. Specific criteria are outlined for each zone and shall be a required part of the site plan (e.g. lot setbacks, etc.). J. All exterior lighting shall be shielded so that direct light does not project off-site. K. Transportation access to the site shall be adequate for the use. 1. Where applicable, issues including, but not limited to, sight distance, turn and acceleration/deceleration lanes, right-of-way, roadway surfacing and widening, and bicycle and pedestrian connections, shall be identified. 2. Mitigation for transportation -related impacts shall be required. 3. Mitigation shall meet applicable County standards in DCC 17.16 and DCC 17.48, applicable Oregon Department of Transportation (ODOT) mobility and access standards, and applicable American Association of State Highway and Transportation Officials (AASHTO) standards. (Ord.2018-xxx'X, .2018i_Ord. 2010-018 §2, 2010, Ord. 93-043 §§21, 22 and 22A, 1993; Ord. 91-038 §1, 1991;. Ord. 91-020 §1, 199 1) Chapter 18.124 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 Work Session of June 13, 2018 DATE: June 5, 2018 FROM: Sara Crosswhite, 9-1-1 Operations, 541-322-6111 TITLE OF AGENDA ITEM: 9-1-1 Update ATTENDANCE: Sara Crosswhite and Joe Blaschka, ADCOMM Engineering SUMMARY: I wanted to provide a general update of progress made this past week. I've also also requested Joe Blaschka with ADCOMM come and update the Board on the progress of the Overturf project. This will also provide him an opportunity to discuss options moving forward in regards to a permanent site. 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 Work Session of June 13, 2018 DATE: June 7, 2018 FROM: Zechariah Heck, Community Development, 541-385-1704 TITLE OF AGENDA ITEM: Central Oregon Canal Nomination to the National Register of Historic Places SUMMARY: The Board has directed staff to prepare a letter to the State Historic Preservation Office regarding the Central Oregon Canal nomination to the National Register of Historic Places. The draft letter is attached to this agenda item. The Board will have an opportunity to edit the letter at this meeting. If the Board still wishes to send a letter to the state commenting on the nomination, the letter will need to be finalized as soon as possible. The State Advisory Committee on Historic Preservation will be reviewing comments on the nomination during a meeting scheduled for June 22. Christine Curran, Deputy State Historic Preservation Officer Oregon State Historic Preservation Office 725 Summer Street NE, Suite C BOARD OF COUNTY COMMISSIONERS Salem, OR 97301 RE: Central Oregon Canal Historic District Nomination for National Register of Historic Places Dear Ms. Curran, Thank you for the opportunity to comment on the nomination of the Ward Road to Gosney Road segment of the Central Oregon Canal as a historic district on the National Register of Historic Places. The Board of County Commissioners (Board) has reviewed and considered the nomination, comments from property owners, the Central Oregon Irrigation District (COID), stakeholder organizations and the Deschutes County Historic Landmarks Commission. We recognize the historic value of irrigation canal systems in the settlement of Central Oregon, as well as the scenic and quality of life benefits canals provide to our residents and communities. However, there a number of other issues to thoroughly analyze and understand while simultaneously determining the historic value of the Central Oregon Canal. These issues include, but are not limited to the canal's role in delivering water to farms,regional water conservation, wildlife habitat enhancement, and ongoing maintenance to the facility. As elected leaders we are responsible for making policy decisions that are broad in scope and impact our entire community. While we promote historic preservation in Deschutes County, we also promote efficient use of our utility infrastructure. As such, we are concerned that listing the Central Oregon Canal in the National Register will create difficulties in managing the canal efficiently, in addition to hindering regional water conservation efforts. If the canal is formally listed, we ask that conditions be provided to allow for efficient purveyance of the canal's irrigation water. Thank you for your consideration. The Deschutes County Board of Commissioners Anthony DeBone, Chair Philip G. Henderson, Vice Chair Tammy Baney, Commissioner 1300 NW Wall Street: Bend, Ore on 9770> t®� (541) :388-6571 c�`i boa rd,1'deschutes .org www.deschutr=s.orr _< 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 Work Session of June 13, 2018 DATE: June 5, 2018 FROM: Judith Ure, Administrative Services, 541-330-4627 TITLE OF AGENDA ITEM: Economic Development Loan Request RECOMMENDATION & ACTION REQUESTED: Consider request for economic development loan in the amount of $50,000 to AXTS Inc. ATTENDANCE: Jon Stark, REDI, members of the Due Diiligence Committee, and Judith Ure. SUMMARY: Deschutes County, in partnership with Economic Development for Central Oregon (EDCO) and Redmond Economic Development, Inc. (REDI) operates an Economic Development Loan program for the purpose of providing funds to businesses that are seeking to create new, family -wage jobs within the community. Loans are conditioned upon the business creating the new jobs within 24 months, then maintaining them for a consecutive 12 - month period. If these terms are met, the loan may be converted to a grant that does not require repayment. If not, all or a portion of the funds must be repaid with 8% interest per annum retroactive to the execution date of the loan agreement. Loans are made from the Economic Development Loan Fund which currently has an unencumbered cash balance of approximately $120,000. EDCO/REDI is recommending to the Board of Commissioners that a loan be made to AXTS, Inc., a manufacturer of firearms accessories, in the amount of $50,000 in return for creating 25 new jobs at an average pay of $48,144.21. Additional information describing the loan request and the current status of the economic development loan program is attached. BRIEFING PAPER AXTS Inc. d.b.a. Radian Weapons Request for Deschutes County Economic Development Fund (DCEDF) Company Request: $50,000 EDCO Recommendation: $50,000 Application Date: Dec 27"', 2017 Proposed Job Creation within 24 months of application date: 25 new employees Average Pay for New Employees (all positions, excluding commissions): $48,144.21 Industry: Firearms accessories manufacturing Website: www.radiamveat)ons.com Company Background: ARTS Inc, dba Radian Weapons and subsidiary X Factor Machine, are all owned by principals Josh and Julie Underwood. X Factor Machine produces parts for Radian and also employs about a dozen of the employees who are paid under the multiple Federal Tax ID numbers. Radian is the current holder of the FFL (Federal Firearms License), which allows thein to legally produce their products. X Factor Machine began in 2001 as a custom machine shop producing parts for the aviation aerospace, medical and firearms industries. While making parts for other firms, founder Josh Underwood found an unserved gap in products on the market. These products include ambidextrous charging handles, safety and mag releases. The new products were designed and patented under AXTS Machine (founded in 2009) and now sold under Radian. AXTS now manufactures several versions of these accessories and others. These parts are assembled with other manufacture's parts for complete firearms, however Radian is most known for their flagship ambidextrous charging handle, called the Raptor. Accessory sales far exceed finished firearms. The owners, and around a half-dozen employees have moved to Redmond, Bend and the surrounding area. Roughly six more have been hired locally, for a total of 14 working at the facility today, doing laser engraving, assembly, inspection and final assembly. Nine more will move or be hired in Redmond in a few weeks, as soon as the building can be upgraded with essential power to run their machines. The company expects to employ at least 25 people within the 2 -year ramp -up period available under the program. However, the company has shared the likelihood that they will employ closer to 38 as they continue to add capacity via the larger building and release new products. The company is leasing the building with an option to purchase, which they fully intend on doing. EDCO has been working closely with Radian for the past year with access to incentives, permitting, financing, and integration into the community. The company will invest or move in excess of $1 million dollars in future taxable property via upgrades to the building, relocation of existing machinery from Salem and purchase several new pieces of equipment. Radian is also accessing the Redmond Enterprise Zone and the City's Urban Renewal program. If awarded, DCEDF funding will go to pay for current upgrades and several future planned improvements to the building and adding equipment to further their capabilities to better serve their customers. Each of these are expected to be future taxable property investments. EDCO Recommendation The Redmond DCEDF due diligence committee had an opportunity to meet the principals of Radian and tour their new building in Redmond on March 23rd. It was obvious to the committee that they are excited to be in Redmond and anxious to begin filling the building with the remaining machining center and Cerekote equipment (still based in Salem until the electrical in the building can be upgraded) in order to consolidate operations into one location. The committee was given the opportunity to review the last three years of financial statements and can confirm the company is showing solid sales growth year over year. In addition it appears that they are reinvesting back into the company as their retained earnings have grown over the same period of time. The due diligence committee consisted of Jon Stark, EDCO Sr. Director for Redmond Economic Development, Inc., Joe Centanni, CPA with Capstone and Redmond City Councilor and Travis Browning, Redmond Market President with First Interstate Bank. Also in attendance was Chuck Arnold, Economic Development and Urban Renewal Program Manager with the City of Redmond. The committee and EDCO are recommending an award of $50,000, or $2,000 per job, to be created by December 27"', 2019 (24 months following the application date). Conditions include: • Company employs 25 FTE in Deschutes County by December 27"', 2019 and maintains that employment for any 12 -month period before December 27"', 2020. • Company provides quarterly employment reports and the ability to inspect complete financial statements from award date through termination of the yet -to -be executed agreement with Deschutes County. Failure to meet the above provisions would result in partial or full repayment of the loan, with interest. 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