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2018-361-Minutes for Meeting May 16,2018 Recorded 8/31/2018•4.0BOARD OFCOMMISSIONERS 1300 NW Wall Street, Bend, Oregon (5 41 ) 388-6570 1:30 PM Pecorded ;n Deschi.,tes (-,o"nty CJ2018-361 Nancy Blankenship County Clerk Commissioners' Journal 08/31112018 3:13:10 F'M ��;:� li I I I II I IIIII II I II I II i i II I II SII / ,� 2018-361 1 FOR RECORDING STAMP ONLY WEDNESDAY, May 16, 2018 ALLEN CONFERENCE ROOM Present were Commissioners Tarnmy Baney, Phil Henderson and Anthony DeBone. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; David Doyle, County Counsel; and Tamijo George, Administrative Support. Specialist. No identified representatives of the rnedia were in attendance. CALL TO ORDER: Chair DeBone called the meeting to order at 1:33 p.m. This portion of the agenda was video and audio recorded. ACTION ITEMS 1. Potential Revisions to Marijuana Regulations/Programmatic Changes - Nick Lelack, Community Development Director Before discussing Action Item 1, Commissioner Henderson requested to respond to a recent editorial in The Bulletin regarding the Board's efforts to review the marijuana regulations and how the Commissioners would better serve their constituents by growing some backbone. For the record, Commissioner Henderson disagreed with the editorial and stated the Commissioners are serving our constituents in several ways. PAGE 1 OF 9 First, when regulations were passed, it was understood that the regulations would be reviewed after a period of time which is now being done. Second, when our regulations were under attack in the legislature, the Commissioners committed to the legislature we would review the regulations which we are. These both show backbone. It is clear that a number of constituents are concerned we have the right regulations and that we are being fair throughout the county. Third, the editorial criticized our staff for looking at California on density issues. The Commissioners asked the staff to check density and California was the first density check completed with others to follow. Finally, per the editorial, we are undercutting the will of the Oregon voters. Commissioner Henderson pointed out a number of voters did not want recreational marijuana. The measure barely passed in our County but was passed throughout the State. It is reasonable for County Commissioners to determine where marijuana is grown, who is impacted by the growths, and how we can control the impact of the growths. Commissioner Baney agreed it was an interesting editorial. Commissioner DeBone thanked Commissioner Henderson for his comments. Mr. Nick Lelack, Community Development Director, and Mr. Peter Gutowsky, Community Development Manager presented a memorandum to the Board with updates and a matrix developed by the staff identifying development standards, conceptual agreement to confirm, areas requiring additional refinement, and staff comments. The Board agreed with reviewing the matrix item by item. Below is a summary of those discussed. Zoning. The Board agreed to leave this topic on the list to hear public comments after discussions following Measure 56 Notice and subsequent proceedings. Question whether HOAs may override zoning to density issues. Deschutes County land use pattern does not follow traditional MUA-10 or EFU as we do have small acreage EFU. Marijuana is considered agriculture as defined by the State. Mr. Lelack explained MUA-10 is a transitional zone from any type of residential use to EFU. Minimum lot area. Again, the Board agreed to leave this topic on the list to hear public comments on the current 5 acre minimum. Discussion included the possible impact if medical and non-medical marijuana are merged under OLCC, set -backs, and hemp grows not under the same regulations. Indoor Production and Processing. The Board was in agreement to continue the mandate of only indoor production and processing. PAGE 2OF9 Maximum Mature Canopy. With an earlier decision to eliminate the mature canopy provisions and rely on buildable floor area space, now the Board must discuss how best to determine converting canopy size to simple tape measuring of the building. Discussion involved defining zoning code of inside or exterior, including the various areas required from growing to preparation to loading plus OLCC Measure 91 terminology. The Board agreed CDD will research and bring back concepts based on square footage. Setbacks. Exceptions have been eliminated due to conflicts with neighboring properties. Discussion considered expanding setbacks to at least 200 feet from lot lines and at least 500 feet from dwellings. Commissioner DeBone did point out the 100/300 are current setbacks in place. It was agreed to increase the setbacks to be discussed at the public hearing and then make a reasonable judgment as the Board. Separation distances. Discussion ranged from public to private to urban reserve area with separation distance from one mile to three miles to density -based. It was agreed this information is another progress meeting. CDD staff will do additional research including reaching out to the City of Redmond regarding sensitivity with the Redmond Urban Reserve Area. They will also look at other states such as Washington and Colorado regarding separation distance between grows and bring information back to the Commissioners. Lighting. Mr. Lelack explained the proposed times were derived from researching sunsets based on seasons (winter versus summer). Dusk to dawn did not seem specific enough nor did 7 am to 7 pm for the entire year seem practical. It was agreed to obtain opinions from the public. Odor. Commissioner Henderson submitted a handout with additional wording for more specificity to the last bullet regarding the order control system. Discussion included proof of odor control be an objective scientific report versus a promotional brochure and not be a complaint driven process. Commissioners DeBone and Baney were in agreement with Commissioner Henderson on adding the additional wording to the proposed text especially the last two bullets regarding inspection prior to use and periodic inspections when production facility is in operation. Noise. Discussed definition of sustained noise from not exceeding two minutes per hour at night to shall not exceed 30 decibels between 10 pm and 7 am above the ambient noise. Also discussed the challenge of enforcement of a time limit but agreed to two -minutes as a starting point for further discussion in defining sustained noise. PAGE 3OF9 Annual reporting. Discussion included adding that SDC fees must be timely paid and an expectation of inspections up to four times a year depending on results of previous inspections. Other: Site plan review for Marijuana Processing. There was an agreement to include the Board's interpretation. Mr. Lelack further explained any processing, marijuana or lavender, is a Sub 1 use in EFU zone with standards under State law requiring any land -use decision have a minimum 14 -day notification. There is also a 12 -day appeal period. Other: Transportation Impacts. Marijuana production is under right -to -farm but the Board is mindful of the traffic impact in rural areas versus manufacturing areas with warehouses. Mr. Gutowsky recommended bringing in the Road Department and Transportation to address impacts to the County transportation system and appropriate ITE category. Mr. Peter Russell, Senior Transportation Planner, suggested traffic rate /volume can be observed in a local trip generation with the Road Department. Other: Cannabis Cultivation Cap / Density Limit. There is a question if a cultivation cap is needed if there is a density limit or vice versa and what either or both would look like. Mr. Lelack is also awaiting a response to a letter to the Oregon Water Resources Department if there is a demonstrated water use impact in the Tumalo and Alfalfa Water District to assist with the determination. In addition, there has been some discussion with Legal Counsel regarding overproduction; OLCC has not made such a determination yet. Some examples from California and Washington. CDD will research examples from an Eastern Washington county given at WIR to bring back to the Board. Other: DCC 9.12: Deschutes County Right -to -Farm Ordinance. Legal Counsel Doyle noted that direct application of ORS -authorized exception to right to farm to allow for reasonable TPM regulations is implied in DCC 9.12 but some clean-up of the code would be appropriate. CDD will present to the Board on June 6, 2018. RECESS: A recess was taken at 3:33 pm and the meeting reconvened at 3:41 pm with video and audio recording. PAGE 4OF9 2. Consideration of Order 2018-037; KCDG/Tanager Record Objection - Anthony Raguine, Senior Planner Anthony Raguine, Senior Planner, Community Development Department, and Adam Smith, Assistant Legal Counsel, presented an order for consideration to resume written record time limits and deadlines on the proposed KCDG/Tanager projects. Commissioner Baney understands the applicant has the final rebuttal. Mr. Smith confirmed the applicant does have the final rebuttal. There are no statutes nor case laws where the appellant rebuts new evidence submitted in the second round as rebuttal to new evidence submitted in the first round. A request for a guarantee this will not be appealed to LUBA was made by Commissioner Henderson. Neither Mr. Doyle nor Mr. Smith could guarantee there will not be an appeal to LUBA. BANEY: Moved approval of Order 2018-037 as presented. HENDERSON: Second. VOTE: BANEY: Yes. HENDERSON: Yes. DEBONE: Chair votes yes. Motion carried. This portion of the agenda was audio recorded only. 3. April 2018 Treasurers Report and Financial Reports - Wayne Lowry, Finance Director/Treasurer Wayne Lowry, Finance Director/Treasurer presented the April 2018 Treasurers and Financial Reports. The Board had no comments on Treasurer's Report. While reviewing the Financial Report, Commissioner Henderson questioned how often departments are requested to review their staffing throughout the year. Mr. Lowry gave assurances departments are requested to review staffing and budget every month. When departments are fully staffed, though, there are not any anticipated changes in expenditures or revenues. Room Taxes were budgeted for $6.7 million but are doing better than projected. At 2.5% ahead, Mr. Lowry anticipates $6.9 million. Commissioner Baney mentioned the City of Bend is currently being challenged in the usage of Room Tax for roads. PAGE 5OF9 Commissioner Henderson asked for clarification on the location of funds for the temporary 9-1-1 tower. Mr. Lowry noted Fund 710 is the reserve fund and monies are transferred to Fund 705 and Fund 707 to fund projects. Mr. Anderson also pointed out there are several projects included in Fund 710. Mr. Lowry also answered Commissioner Henderson's query regarding the status of the Health Benefits Fund. Claims experience changes every month but they have been muted in that they have not been increasing. We do have more employees but we are at break even with revenues pretty steady. The administration fee has gone up almost 100% over what was projected due to the runout of the EBMS contract and the new contract with PacificSource. 4. Potential Marijuana Production Appeal, 64575 Mock Rd, Order 2018 -034 - William Groves, Senior Planner William Groves, Senior Planner, presented a potential production appeal of a request to relocate one greenhouse. BANEY: Moved approval of Order 2018-034 as presented. HENDERSON: Second. VOTE: BANEY: Yes. HENDERSON: Yes. DEBONE: Chair votes yes. Motion carried. OTHER ITEMS: James Lewis, County Property Manager, followed up on information given last week after phone conference with the State and City of Redmond. The intent is to send a letter to Vicki Walker with history of land exchange to aid her in conversation with the Land Board. A draft was sent to the Board on Monday. Mr. Lewis will obtain signatures from each Commissioner in the next couple of days. PAGE 6OF9 • Judith Ure, Management Analyst, followed up on the Board's expression of support in a previous meeting with this request for a motion to authorize the Historical Landmarks Commission to write a letter of support for the Central Oregon Irrigation District's (COID) application for funding to construct the Cline Falls Historic Plant interpretive exhibit / kiosk. BANEY: Move to authorize. HENDERSON: Second. VOTE: BANEY: Yes. HENDERSON: Yes. DEBONE: Chair votes yes. Motion carried. As part of the kiosk project above, Ms. Ure shared Chris Doty, Public Works Director, will be facilitating a request from COID for a right-of-way license to realign an old County road for parking. • Ms. Ure also mentioned CDD will be following-up with the Board on Monday, May 21St, with a high-level overview of the Central Oregon Canal nomination the Historical Landmarks Commission now supports and recommends the Board support. Mr. Lelack explained CDD will be asking the Board if they would like to make comments on the nominations which are not required. If yes, the Board would need to choose what process they prefer: review the nominations on record at a Work Session or conduct a public hearing prior to the Oregon SHPO (State Historic Preservation Office) meeting in Redmond, on Friday June 22nd Commissioner Henderson signed a letter of intent yesterday to meet the deadline. Ms. Ure explained the letter to Oregon Association of Relief Nurseries was in support of MountainStar Relief Nursery to apply for a significant amount of funding to develop Relief Nursery services in the Redmond area. PAGE 7OF9 At the time of 4:25p, Commissioner DeBone had to leave for another scheduled meeting. Commissioner Henderson assumed position of chair. ACTION ITEMS continued 5. Potential Marijuana Production Appeal, 23450 Walker Road, Order 2018-036 - Anthony Raguine, Senior Planner Anthony Raguine, Senior Planner, presented a potential production appeal. The applicant has requested an exception to the 100 -foot setback for the existing building to a 90 -foot setback existing building. Commissioner Baney suggested a lot line adjustment. Mr. Raguine agreed the applicant could and has been advised by the staff to do a lot line adjustment but will relay the option again to the applicant. BANEY: Moved approval of Order 2018-036 as presented. HENDERSON: Second. VOTE: BANEY: Yes. HENDERSON: Vice Chair votes yes. Motion carried. DEBONE: Absent. COMMISSIONERS UPDATES: None given This portion of the meeting was neither video-taped nor audio -recorded. EXECUTIVE SESSION: At the time of 4:34 pm the Board went into Executive Session under ORS 192.660 (2) (d) Labor Negotiations. The Board came out of Executive Session at 5:15 pm. PAGE 8OF9 OTHER ITEMS: continued • Whitney Hale, PIO, asked the Board to support the Fair & Rodeo program with an ad for $175. This will come out of the discretionary grant. BANEY: Move approval. HENDERSON: Second. VOTE: BANEY: Yes HENDERSON: Vice Chair, votes yes DEBONE: Absent excused. The County Administrator, Tom Anderson, reported on a request by the District Attorney for a minor amendment to the Deputy DA contract to allow part-time / job share. Being no further items to come before the Board, the meeting was adjourned at 5:20 pm. DATED this --;90 Day of l �_ 2018 for the Deschutes County Board of Commissioners. U PAGE 9 OF 9 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, MAY 16, 2018 Barnes and 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. Potential Revisions to Marijuana Regulations / Programmatic Changes - Nick Lelack, Community Development Director 2. Consideration of Order 2018-037; KCDG/Tanager Record Objection - Anthony Raguine, Senior Planner 3. April 2018 Treasurers Report and Financial Reports - Wayne Lowry, Finance Director/Treasurer 4. Potential Marijuana Production Appeal, 64575 Mock Rd, Order 2018-034 - William Groves, Senior Planner 5. Potential Marijuana Production Appeal, 23450 Walker Road, Order 2018-036 -Anthony Raguine, Senior Planner COMMISSIONER'S UPDATES EXECUTIVE SESSION Executive Session under ORS 192.660 (2) (d) Labor Negotiations Board of Commissioners Work Session Agenda Wednesday, May 16, 2018 Page 1 of 2 Executive Session under ORS 192.660 (2) (i) Performance 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. OTHER ITEMS 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, May 16, 2018 Page 2 of 2 m 0 ca 0 LU W) z Lu in CL ui LU 0 Ln < Wuj LLA 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 May 16, 2018 DATE: May 10, 2018 FROM: Nick Lelack, Community Development, 541-385-1708 TITLE OF AGENDA ITEM: Potential Revisions to Marijuana Regulations / Programmatic Changes 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 DATE: May 10, 2018 SUBJECT: Marijuana Regulatory Assessment / Work Session / Programmatic Options BACKGROUND The Board of County Commissioners (Board) conducted a work session on May 7, 2018, to discuss: • Letters to the Oregon Water Resources Department and Oregon Health Authority addressing groundwater impacts in greater Alfalfa and Tumalo and medical marijuana inspections; and, • A conceptual review of marijuana regulations to identify which standards and criteria should be amended, as well as potentially new regulatory concepts relating to capping the number of marijuana permits and/or density limits in geographic areas such as Alfalfa and Tumalo. The Board directed staff to schedule a follow-up work session to continue discussing potential revisions to Deschutes County's marijuana regulations. II. Matrix Staff prepared a matrix as a tool for identifying potential code amendments to Deschutes County's marijuana production and processing standards. Columns in the matrix identify criteria where there may be conceptual agreement, areas requiring additional refinement, and staff comments. III. Next Steps Based on Board direction at this work session, staff will begin to draft text amendments and schedule a follow- up work session to discuss: 1. Reviewing and finalizing the text amendments; 2. Timing to initiate the draft text amendments; and 3. 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N• • • Q y p �• • • • • F, O O O O Recommended changes to odor control text: An odor control system is deemed permitted only after .......... • The mechanical engineer is an expert with qualifications and experience for designing and recommending effective odor control and mitigation systems. • (same second bullet) • objective scientific proof that the planned system will eliminate all marijuana odors from air exhausting the production facility • The system shall be installed and in working order and inspected by Deschutes County prior to the applicants useAf the production facility • Deschutes County shall be allowed to periodically inspect the premises for odor control when the production facility is in operation. 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 May 16, 2018 DATE: May 9, 2018 FROM: Wayne Lowry, Finance, 541-388-6559 TITLE OF AGENDA ITEM: April 2018 Treasurers Report and Financial Reports RECOMMENDATION & ACTION REQUESTED: Discussion of April 2018 Treasurers report and Financial Reports ATTENDANCE: Wayne Lowry, Treasurer/Finance Director SUMMARY: Monthly Report LO C C v O N V C O ca ~ W N ONE COOco O O pVp� N O Of A -IMILn N N Ln N n 4V y U Ez o c C C H E E - o e o o e o o Co ,a) so O m O O ti N tIn N N D w M Q tU C CL Eo- E a� L 0 l- c Y t Y O .�+ dNbj U it W '..` CLL a (i)N y N N � to N > a n d a d O C M 'C CMl) C �U (h d v N = G D r � r rn )� mY ;ao G1N C6 0 ? Ego H » co e•�NeCO0 0,�0 aa'0f 0 ea' N VWN 1O ctrNt!hOOO r CD0 0p0O0)Nto et N to �� O w LO M M w COONONCO -. - N dM' (6 (6 co m l" ca Im C Y Co ,a) ca m d Z y O E D w M Q (�� y L a� L 0 l- c c EL ID d CL �a � O E -j 2 1- ti u- I- N � N d e � � Q0Z O 1- (i)N T H N C �U (h d v N = G D r � r C6 H d � H C A m O p CL ` Y\ �indo o Pp d0 LL <- Y mM(� ti J NLL Deschutes County Investments Portfolio Mpnspamsnl Portfolio Details - Investments April 30, 2018 CUSIP Security Broker _ Purche- Data Mplurity Data - Days To Ratings Coupon Maturity SBP Moody's Rate YTM 365 Par Value Market Value Book Call Vaiva Data 912828XA3 U.S. Treasury PJ 11/3012018 5/15/2018 14_AA+ '.Aaa 1,000 1,000 2,000,000 1,999,500 2,000,000 - 084664BEO Berkshire Hathaway Inc CASTLE 1!12/2018 5115/2018 14 AA Aa2 5.400 1.801 2,229,000 2,231,675, 2,232,088_ - - 913366HS2 'University ofCalifornia .CASTLE 3121/2017, 5/15/2016 14,AA- ;Aa3 0.936 1.351 3,000,000 2,998,830' 2.999.521 - 3135GOXD0 Federal National Mig Assn CASTLE 114/2017 512112.018. 20,AA+ Asa 1.000, 1.250, 500,000, 499,785, 500,000, - - 313OA87B3 Federal Home Loan Bank VINISP 12/6/2016 5/30/2018 29 M+ Asa 1.000 1,141 1,500,000, 1,499,100 1,500,000 - 06050TMC3 Bank ofAmerica- CorporateN CASTLE 51912017, 615/2018, 35A+ ,At , 1150 1.540 t,000,00D 999,570• 1,000.196' 3132XOLRO Federal Agriculture Mtg Corp PJ 12/812016_ 618/2018 38, 1,.100 1.100. 2,000,000 1,998,900 2,000,00 - 96385XAP1 XTOEnergy Inc CASTLE, 8/4/2015 6/15/2018 45, AAA ,Asa 5.500 1.500 1,006,000 1,003,180 1,004,767 - 004121 NCO Umatilla School District PJ 5!712015 6/15/2018 45AA+ 1,430 1,430 750,000 749,505 750,00D - - 10592 Washington Federal CD 5/2MO17, 612 212 0 7 8, 52, 0960, 0.913, 243,643, 243,643, 243,643. - 67 1664AEO Chevron Corp CASTLE 4/15/2016 6/24/2018_ 54 AA- Aa2 1.718 1 191 2,000,000 1,998,360. 2,001,526 512.42018 166764AEO Chevron Corp CASTLE 10111120166/24/2018 54 AA- Aa2 'Aa3 1.718 1.259 1,000,000 999,180 1.000,304 - 939307HF4 Hillsboro SO Pension Bonds PJ 3/30/2015. 6/30/2018 ' 60 1.732 1.650 985,000 984,606 985,128 - 938429M46 Washington County SO Municipal PJ 9/8!2016 6!302018 60 ,Aa3 1.585 0.998 250,000 249,840 250,237 - 84247PHT1 Southern CA Public Power Autho CASTLE 12/19/2017 7/1/2018 61'AA• 1.728 1,779 2,510,000 2,508,419 2„509,788 - 3135GOL43 Federal National Mfg Assn CASTLE 12/132016 7/132018 73 AA+ Aaa 0.850 1.221 1,000,000 997,430 1,000,000_ - - 88059EMT8 Tennessee Valley Authority DA DAV 2/22/2016 7/15/2018 75 1 021 1.065 500,000 497,665 498,936 - 3133EGNU5 Federal Farm Credit Bank CASTLE 8/1/2016 7/27/2018 87 AA+ Aaa 0.960 0.960 1,000.000 997,810_ 1,000,000_ - 3134G9067 Federal Home Loan Mtq Corp CASTLE 7/27/2016, 7272018 87 AA+ Aaa 1050 1.050 3,000.000 2,994,600 3.000000 - - 934876AGO Part of Newport OR Lease DA DAV 3/27/2017 8/1/2018 92 AA 4.500 1.450 610,000 613,422 614,587 - - 842400FJ7 Southern Cal Edison CASTLE 5/26/2017 8/15/2018 106 A Aa3 5.500 1.520 2,000,000 2,016,320 2,022,086 - - 65371AU2 Oceanside California Pension CASTLE 1/27/2017 8/15/2018 106,AA 2.298 1.551 1,850,0001,851,258 1.853,931 - 544351KMO Los Angeles Cald Go Ref Bds 1212112,016, 9/12018; 123 AA2 1,210 1209 1,000,000' 996,780 1.000,000 - 3134GAKFO Federal Homo loan Mlg Corp ,PJ 10/18/2018 9/1212018. 134,AA+ Aaa 1 110 1 110. 3.000,006 2,990,730 3,000,000 6/122018 3134GBUN7 Federal Home Loan Mtq Corp .CASTLE CASTLE 31302016 920/2018 150 AA- Aaa 1.200 1.200 2.000,000 � 1,993.360. 2,000.000 6/28/2018 3134G9YA9 Federal Home Loan Mlg Corp CASTLE 6/28/2016 9/2812018 150 AA- Aaa 1.010 1.000 2,520,000 2,509,693 2,520.000 6/28/2018 3134GAND3 Federal Home Loan Mtq Corp CASTLE 91282,016 9/2 8/2018 150 AA, Aaa 1.050 1.050 00 4,0,000 3,984,280 4,000,000 - - 3133EFJP3 Federal Farm Credit Bank CASTLE 11/4/2018 10/15/2018 167'AA+ Aaa 1,100 1,100 5,000,000 4,978,950 5,000.000 - 313002974 Federal National Mtg Assn 'CASTLE 5/22/2017' 10/29/2018 181'AA+ Aaa 1.190 1,340 5,000,060 4,979,200 5,000.000 72912018 912828WDB U.S. Treasury CASTLE 12/1/2015 10/31/2018 183 AAA Aaa 1150 1.223 1,000,000 996,020 1,000,134, g12828T83 U.S. Treasury CASTLE ' 12/142016 10/31/2018 163 AAA ,Aaa 0.750 1.155 3,000,000 2,980,560 2.993,998 - - 31771KAJ6 FICO Strip CASTLE 9/28/2017 11/2/2018 185_ 1,460 1.520 5.000,600., 4,942,750 4,962,484 - - 427542KX2 Hermiston OR DADAV 921/2016 121112016, 214 AA- 3.000 1,001 605,000 608.678, 611,962 - - 06050TME9 Bank ofAmerica-Corporate CASTLE 5/16/2017 12/7/2018 220 A+ At 2.650' 1.700 3,180,000, 3,173,131 3,186,550 - - 31ZZ 34A40 Federal Home Loan MlgCorp CASTLE 311912.018, 12/1412018 227 AA• ,Aa2 5.000 2.287 1,000,000 1,016,210 1,016,544 - - 31771EAN1 FICO Strip CASTLE 1113!2016 12/27/2018 240 0984 1.025 1,000,000, 984.430, 993,440 - - 912828A75 U.S. Treasury CASTLE 6/8/2015 12/31/2018 244 AAA ,Aaa 1.500 1.324 1,000,000, 995,660 1,001,142 - 3132XONJ6 Federal Agricullure M19 Corp CASTLE 5/1/2017 1123/2019 267 1.270 1.400 3,000,000 2,978.430 2,997,195 - - 912833KU3 U.S. Treasury CASTLE 1/29/2018 2/15/2019 290 1.913 1.997 2,000,000 1,965.960 1,969.178 - - 912828SH4 U.S. Treasury CASTLE 2/22/2018 2/26/2019 303 1.375 2060,. 3,000,000 2,978,430 2,983,192,. - - 20271RAF7 Commonwealth BKAustr NY CASTLE 9/18/2017 3/13/2019 316 AA- Aa3 2.250 1.720 2,600,000' 2,591,550 2,611,736 - - 88059E4G6 Tennessee Valley Authority CASTLE 2/7/2018 3/152019 318 2.002 2,90 1,020,000, 997,325 1,001,962 - - 68607VS71 Oregon State Lottery CASTLE 4/5/2017 4/12019 335 Aa2 1.602 1.581 1,000,000.993.010 1,000,194 - 459058FC2 International Bonds for Recons CASTLE 12/15/2016 4/26/2019 360 AAA Aaa 1.250 1.500 2,000,000. 1,978,200 2,000,000 - 90331HMY6 US Bancorp CASTLE 12/2212017 426/2019 360 AA. At 1.400. 2.000 1.000.000, 988,300, 994,184, 3262019 90520EAFS MUFG Union Bank CASTLE 12/6/2017 5/6/2019 370 A A2 2.250. 2.185 1,352,000. 1,343.834 1.352,849 4162019 084061-IBMO Bank of New York Mellon Carp CASTLE 11/15/2017 5/15/2019 379 A Al 5.450 1.950 1,00,000 1,028,870 1,035,662 - - 3133EGAV7 Federal Farm Credit Bank CASTLE 3/10018 511712019. 381,AA+ Aaa 1.170' 2.210, 2,000,000 1,973.380, 1,978,665 - 62889KA03 National Credit Union Assoc CASTLE 3292018 6/12/2019 407 AA+ Aaa 3.000 2.301 1,240,000, 1,247,874 1,249,451 250351FJ7 Deschutes County Ore Sch Dist PJ 8/16/2016 6/15/2019 410 AA1 1.360 1360 245,000, 241,950 245,000 - - 938429R66 Washington County SO Municipal PJ 5/11/2017. 0/15/2019 410 AA- Aal 1,488 1.488, 400000 396,146 400,000_ - 3137EAB1 _Federal Home Loan Mlg Corp CASTLE 7/20/2016 7/19/2019 444 AA- Aaa 6.875 0.957 1,000,000 982,110 999,018 - 13034PZ02 CALIFORNIA ST HOUSINGFINANICASTLE 112/2017 8/112019 457,AA• Al 1.952,. 1.850 1.070,000, 1,060.616 1,071,324 - - 3135GON33 Federal National MlgAssn CASTLE 8/182018, 8212019 458'AA+ Aaa 'As2 0.875 1.000, 1,000,000 981,160 998,457 89114013,16 Toronto Dominion Bank CASTLE 2152018 8/132019 469,AA. 1,450 2.360 5,000,000' 4,915,800 4,942,967 - 912828LJ7 U.S. Treasury. :CASTLE 32112018, 8115/2019, 471. 3,625, 2.250_ 2.,000,000, 2,031,100 2034,785' - 06406HCW7 Bank of Now York Mellon Corp CASTLE IIKW..016; 9111/2019 498,A Al 2.300' 1.532 1,675,000, 1,665,084 1,691;191 8/112019 48125Lf2J3 JPMorgan Chase -Corporate N CASTLE 4/102017 9/23/2019 510 A+ Aa3 2.861' 2.236, 3,000,000, 3.018,570 3,01'2.32.7 823/2019 48125LRG9 JPMorganChase- CorporateN CASTLE 6/28/2017 9/23/2019 510 A+ ,Aa3 65 10 1.840 1,300,000 1,280,071 1,296,706 8/2312019 313586RC5 - FederalNationalMtgAssn CASTLE 12/4/2015 10/912019 526 AA- 1.891 2.0311 1,400,000 1,349.082 1,361.319 - - 313586RC5Federal National Mtg Assn CASTLE 3/17/2016 10/9/2019 526 AA. 1.665 1.774 600,000 578,178' 585,404 313586RC5 Federal National Mlg Assn CASTLE 81812016 10/9/2019 526 SAA- 1,252 1.318. 400,000 385:152 392,682 - 313586RC5 Federal National MID Assn CASTLE 11/22/2017 1019/2019 526 AA- 1.928 2030. 3,600,000 3 469,068 3,498,585 - 76116FAA5 RFSCP STRIP PRIN CASTLE 921/2017 101152019 532 1.499 1,572. 1,000,000 962,170 977,852 - 3135GOR39 Federal National Mtq Assn CASTLE 11/10/2016' 10/24/2019 541'AA+ Aaa 1,000 1.173 2,000,000 1.957,660 1.994,991 - 912628F62 U.S. Treasury CASTLE 10/1112616 10/312019 548 AAA Aaa 1.500` 1,008 2,000,000, 1,977.,900 2,014,514 961214BK8 Wostpac CASTLE , 8130/2017 11/19/2019 567'AA- ,Aa3 4,875, 1.826 2,000.000' 2,057,640 2,092,185 - - 912828G95 U.S. Treasury 'PJ 111612018 12/31/2019 669 1,625, 2.000 2,000,000 1,973,360 1,987.784, - 94988351-.1 Wails Fargo Corporate Note CASTLE 112312018 111512020 624 Aa2 2.400, 2,444 3,000,000 2,971,860, 2,997,827_ - - 594918AYO Microsoft Corp CASTLE 8/8/2016' 2/12/2020 652 AAA _Aaa 1.850 1.298_ 1,009,585 1,000,00 986,620 1/1212020 3133EJDCO Federal Farm Credit Bank CASTLE ' 3/12/2018 ' 22012020 660 AA+ Aaa 2.150 2.360 925,000, 916,573 921,860 2120/2019 13063CSQ4 California St 'VINISP 9/21/2017 4/1/2020 701 AA- Aa3 1,800' 1.800- 780,000 768,596 780,000 - - 3137EAEM7 Federal Home Loan Mfg Corp CASTLE 4/19/2018 4/23/2020 723 2;500 2.511 2,000,000 1,998,040 1,999,567 - - 3134GBNK4 Federal Home Loan Mtq Corp CASTLE 7/1312017 5ag2020 759 Aaa 1.625, 1,671 3,000,000, 2,945,370, 2,997,762, 512912019 686053CK3 iOregon School Boards Assoc CASTLE' 3/1512017 3/15/2017 613012020 6/30/2020 Aa2_ 2063 2.149' 1,000,000 935,260 955,302 -. 569203MA7 Salem-Ket'GarSchool District CASTLE 7/2612017 6130/2020_ 791, Aa2 'Aa2 2.107 1.778, 2,310,000 2,276,574,. 2,325,844 - - 686053DH9 Oregon School Boards Assoc -DADAV 11212015! 6/30/2020 791.AA , 5.373 2.050• 875.000' 921,655 934,701 - 686053DH9 Oregon School Boards Assoc CASTLE 6/24/2016 6/30/2020 791 AA Aa2 5 373 1.570 500,000 526,600 539,723 - 949748GM6 Wells Fargo Corporate Note PJ 1/192017 712212020' 813A HA2 2.600 2.350 1,000,000. 989,550 1.005,308 - 053015AD5 AUTOMATIC DATA CASTLE 2/26/2018 9/15/2020 868 AA Aa3 2.250 2.570 2,710,000'. 2,680,163, 2,690,181 8/152020 940093R25 Washington Univ Higher Ed 'PJ 1119/2017 10/1/2020 884 Aa2 5.930 1.970 400,000 428,064 436,733 - 45905U7J7 Intomalional Bonds for Recons CASTLE' 2/9/2018.. 10/51202.0 888 AAA Asa 1,625 2.474 2,000,000 1,950,800_ 1,970,013 4/512019 492244DV7 Kern Community College 'CASTLE 11/15/2016,. 11/1/2020 915 AA- 2.893 1.800'. 500.000 499,685 513,128 - - 3134GBX56 Federal Home Loan Mtg Corp _' CASTLE 12/13/2017 11/24/2020 938'00+ Aaa 2.250' 2.172 3,000.000 2,968,320 _ _ 3,000,943_ 5/242.018 3134G8JH3 Federal Home Loan Mtg Corp CASTLE 12/27/2017 2/17/2021 1023!. 2000..'. 1.715. 2,000,000, 1,988,540; 1,998,736 2/17/2019 3136G4NN9 Federal National Mig Assn CASTLE 1011812017, 524/2021 i119,AA+ Aaa 2.000 , 2.000' 1,080,000, 1,054.426 1,080,000 512.42018 Local Govt Investment Pool 2.100 2.100, 18,838.596 , 16,838,596 16,838,598 - - Bank of the Cascades , 2.100, 2.100 6,132,926 6 132 926 8 132926 - - 173,188165 172.184,791! 173,153.9821 General Fund Schedule of Financial Operating Data Year to Date July 1, 20171 1 FY 2017 through April 30, 2018 FY 2018 (83% of the near) Beginning Net Working Capital per FY 2019 Proposed Budget $10,890,000 a) Based on prior years' collection patterns, 97% of Property Taxes - Current have been received through April. Taxes received in May and June projected to be $800,000 b) Includes $500,000 Federal PILT. HB 3400 not incuded in budget: October $365,655, December $76,991, April $76,949. Estimate for June - $76,900. Other revenues in excess of budget are: MH tax $70,000; interest $45,000; tax on electrical co-ops $34,000; and property tax PILT $14,000. c) A & T Grant received quarterly. Q1 - July; Q2 - October; Q3 - January; Q4 - April. d) Projected to be less than budgeted due to YTD unfilled positions. Page 1 Actual Actual Budget Budget Projected I Variance Revenues Property Taxes - Current $ 25,816,331 $ 26,017,325 99% a) $ 26,296,000 $ 26,817,325 $ 521,325 Property Taxes - Prior 465,085 456,271 130% 350,000 480,000 130,000 Other General Revenues 2,499,968 2,678,730 114% b) 2,345,822 3,105,317 759,495 Assessor 860,861 840,315 99% c) 848,867 848,867 - County Clerk 1,952,209 1,382,575 73% 1,896,945 1,776,945 (120,000) BOPTA 12,546 12,468 100% c) 12,480 12,468 (12) District Attorney 253,480 115,226 61% 187,400 187,400 - Tax Office 196,203 192,937 98% c) 196,200 196,200 - Veterans 96,889 121,667 75% 162,223 162,223 - Property Management 94,500 14,000 14% 97,000 97,000 - Total Revenues 32,248,072 31,831,515 98% 32,392,937 33,683,745 1,290,808 Expenditures Assessor 3,993,958 3,498,962 82% 4,291,041 4,291,041 - County Clerk 1,684,783 1,231,657 68% d) 1,820,344 1,670,344 150,000 BOPTA 65,175 55,587 82% 68,138 68,138 - District Attorney 6,095,393 5,446,331 81% d) 6,701,724 6,651,724 50,000 Medical Examiner 146,817 108,333 63% 172,184 172,184 - Tax Office 785,346 667,045 79% 849,312 849,312 - Veterans 403,775 392,716 80% 492,630 492,630 - Property Management 247,568 210,241 76% 276,097 276,097 - Non -Departmental 1,268,363 1,039,220 78% 1,328,089 1,328,089 - Total Expenditures 14,691,178 12,650,091 79% 15,999,559 15,799,559 200,000 Transfers Out 17,856,310 13,767,615 79% 17,445,890 17,445,890 - Total Exp & Transfers 32,547,489 26,417,706 79% 33,445,449 33,245,449 200,000 Change in Fund Balance (299,416) 5,413,809 (1,052,512) 438,296 1,490,808 Beginning Fund Balance 11,217,374 10,917,957 109% 10,000,000 10,917,957 917,957 Ending Fund Balance $ 10,917,957 $ 16,331,766 $ 8,947,488 $ 11,356,253 $ 2,408,765 Personnel 9,965,553 7,824,907 72% 10,841,612 Material & Services 4,544,700 3,268,041 65% 5,030,152 Capital Outlay 180,925 9,609 96% 10,000 Total by Category $ 14,691,178 $ 11,102,557 70% $ 15,881,764 Beginning Net Working Capital per FY 2019 Proposed Budget $10,890,000 a) Based on prior years' collection patterns, 97% of Property Taxes - Current have been received through April. Taxes received in May and June projected to be $800,000 b) Includes $500,000 Federal PILT. HB 3400 not incuded in budget: October $365,655, December $76,991, April $76,949. Estimate for June - $76,900. Other revenues in excess of budget are: MH tax $70,000; interest $45,000; tax on electrical co-ops $34,000; and property tax PILT $14,000. c) A & T Grant received quarterly. Q1 - July; Q2 - October; Q3 - January; Q4 - April. d) Projected to be less than budgeted due to YTD unfilled positions. Page 1 Revenues OYA Basic & Diversion ODE Juvenile Crime Prev Leases Inmate/Prisoner Housing DOC Unif Crime Fee/HB2712 Food Subsidy Gen Fund -Crime Prevention Interest on Investments OJD Court Fac/Sec SB 1065 Contract Payments Case Supervision Fee Miscellaneous Total Revenues Expenditures Personnel Services Materials and Services Total Expenditures Transfers Transfers In -General Fund Transfers Out-Veh Reserve Total Transfers Change in Fund Balance Beginning Fund Balance Ending Fund Balance Community Justice- Juvenile Schedule of Financial Operating Data FY 2018 Projected I Variance $ 355,586 Year to Date July 1, 85% a) 2017 through April FY 2017 30, 2018 (83% of the 86,497 year) 59% a) % Of 91,379 Actual Actual Budget FY 2018 Projected I Variance $ 355,586 $ 295,129 85% a) $ 346,046 $ 407,113 $ 61,067 86,497 42,274 59% a) 71,982 91,379 19,397 84,121 71,909 85% b) 85,000 80,000 (5,000) 74,700 103,350 188% c) 55,000 120,000 65,000 36,045 26,483 72% 36,658 36,658 - 18,744 15,619 78% 20,000 20,000 - 20,000 15,000 75% d) 20,000 20,000 - 17,512 17,225 115% h) 15,000 22,000 7,000 18,438 14,847 87% c) 17,000 24,000 7,000 10,920 6,310 79% 8,000 8,000 - 5,964 4,968 83% c) 6,000 6,000 - 3,170 3,091 167% g) 1,850 3,500 1,650 731,697 616,204 90% 682,536 838,650 156,114 5,005,247 4,301,537 82% e) 5,242,613 5,180,000 62,613 1,204,317 981,645 77% 1,270,246 1,230,000 40,246 6,209,564 5,283,182 81% 6,512,859 6,410,000 102,859 5,464,591 4,664,703 83% 5,597,643 5,597,643 - 44,000 51,750 75% f) 69,000 69,000 - 5,420,591 4,612,953 83% 5,528,643 5,528,643 - (57,276) (54,025) (301,680) (42,707) 258,973 1,415,374 1,358,098 113% 1,200,000 1,358,098 158,098 $ 1,358,098 $ 1,304,073 $ 898,320 $ 1,315,391 $ 417,071 Beginning Net Working Capital per FY 2019 Proposed Budget $ 1,200,000 a) Grant was increased by legislature subsequent to budget adoption. b) Rimrock Trails no longer leasing space. c) Inmate housing trending at greater than budgeted. Other counties opting to use DC facility, more than anticipated, when another regional facility became focus of a negative investigation. d) Internal grant funded quarterly e) Projection decreased due to staff vacancies in Q1 and new hires who started at a lower salary step range in beginning of fiscal year. Includes expected Class/ Comp increase and a retirement leave payout f) Transfer to Reserve includes $25,000 to cover estimated costs of vehicle repair and maintenance. g) Projection based on YTD Actual. h) Projection based on annualizing year to date. Page 2 Sheriff's Office and LEDs Schedule of Financial Operating Data (Beginning Net working Capital per FY 2019 Proposed Budget T� 131037'au7 a) Based on prior years' collection patterns, 97% of Property Taxes - Current have been received through April. Taxes received in May and June projected to be $670,000 for LED #1 and $300,000 for LED #2. b) $25,000 contribution to suicide/substance abuse hotline. Open Civil Tech position in Civil/Special Units division reclassified as HR Analyst in Sheriff Services division c) Unfilled FTE. Overtime is expected to exceed budget. d) Open Records Admin Supervisor position will be converted to a Sergeant position. e) Projection includes $8,000 reimbursement for Solar Eclipse expenditures. f) Grant of $50,000 for purchase of $67,500 boat. g) Projection increased due to an unbudgeted rifle purchase. h) Projection based on YTD actual adjusted for one-time transactions I) Projection includes ISF and interfund contract payments only. I) Includes the $50,000 transferred from Fund 701/702 to Fund 256 Communication Reserve Page 3 Year to Date July 1, 2017 FY 2017 through April 30, 2018 FY 2018 (83% of the year) oP Actual Actual Budget Budget I Projected Variance Revenues LED #1 Countywide Property Taxes Current Year $ 21,137,803 $ 21,802,225 99% a) $ 22,045,228 $ 22,472,225 $ 426,997 Prior Year 308,837 318,303 80% 400,000 350,000 (50,000) Interest 110,368 127,940 160% 80,000 150,000 70,000 Total LED #1 Countywide 21,557,009 22,248,468 99% 22,525,228 22,972,225 446,997 LED #2 Rural Property Taxes Current Year 9,474,144 9,777,396 99% a) 9,916,642 10,077,396 160,754 Prior Year 141,704 144,087 78% 185,000 161,000 (24,000) Interest 90,261 102,525 167% 61,300 120,000 56,700 Total LED #2 Rural 9,706,109 10,024,008 99% 10,162,942 10,358,396 195,454 Sheriffs Office Revenues 8,249,855 3,658.183 50% e) f) 7,386,585 7,212,477 (174,108) Total Revenues 39,512,973 35,930,858 90% 40,074,755 40,543,098 468,343 Expenditures Sheriffs Services 2,386,420 2,054,789 76% b) 2,689,023 2,445,290 243,733 Civil/Special Units 1,117,489 1,103,614 82% b) h) 1,352,686 1,360,714 (7,628) Automotive/Communications 2,601,537 1,702,042 69% h) 2,481,701 2,044,902 436,799 Detective 1,796,143 1,579,260 79% 1,995,351 1,893,323 102,028 Patrol 8,822,794 7,812,709 80% h) 9,724,673 9,628,758 95,915 Records 695,956 593,934 78% d) 761,258 725,969 35,289 Adult Jail 16,236,326 13,781,170 79% h) 17,488,887 16,762,250 726,637 Court Security 270,173 406,040 99% c) h) 410,659 497,620 (86,961) Emergency Services 284,009 302,989 80% e) 379,092 362,106 16,986 Special Services 1,500,791 1,319,778 85% f) 1,543,848 1,516,281 27,567 Training 590,962 586,463 90% g) 654,646 706,860 (52,214) Other Law Enforcement Services 904,547 696,993 75% c) 935,144 840,290 94,854 Crisis Stabilization Center 51,420 9% 1) 558,424 61,704 496,720 Non -Departmental 112,846 1,731 3% j) 52,077 52,076.84 0 Total Expenditures 37,319,993 31,992,952 78% 41,027,669 38,898,145 2,129,524 Revenue less Expenditures 2,192,980 3,937,706 (952,914) 1,644,953 2,597,867 Beginning Balance 11,225.692 13,418,672 121% 11,113,000 13,418,672 2,305,672 Ending Balance $ 13,418,672 $ 17,356,378 $ 10,160,086 $ 16,063,625 $ 4,903,539 (Beginning Net working Capital per FY 2019 Proposed Budget T� 131037'au7 a) Based on prior years' collection patterns, 97% of Property Taxes - Current have been received through April. Taxes received in May and June projected to be $670,000 for LED #1 and $300,000 for LED #2. b) $25,000 contribution to suicide/substance abuse hotline. Open Civil Tech position in Civil/Special Units division reclassified as HR Analyst in Sheriff Services division c) Unfilled FTE. Overtime is expected to exceed budget. d) Open Records Admin Supervisor position will be converted to a Sergeant position. e) Projection includes $8,000 reimbursement for Solar Eclipse expenditures. f) Grant of $50,000 for purchase of $67,500 boat. g) Projection increased due to an unbudgeted rifle purchase. h) Projection based on YTD actual adjusted for one-time transactions I) Projection includes ISF and interfund contract payments only. I) Includes the $50,000 transferred from Fund 701/702 to Fund 256 Communication Reserve Page 3 Revenues State Grants CCBHC Grants OHP Capitation Administrative Fee Environmental Health Fees State - OMAP Federal Grants Patient Fees Local Grants Local Government payments Title 19 State Shared -Family Planning State Miscellaneous Liquor Revenue Divorce Filing Fees Interfund Contract -Gen Fund Vital Records Interest on Investments Other Total Revenues Expenditures Personnel Services Materials and Services Capital Outlay Total Expenditures Transfers Transfers In -General Fund Transfers Out Total Transfers Change in Fund Balance Beginning Fund Balance Ending Fund Balance Health Services Schedule of Financial Operations Data FY 2018 Budget Projected Variance $ 12,512,572 $ 9,884,648 79% e) f) Year to Date July 1, FY 2017 2017 through April 30, 673,598 2018 (83% of the year) 124% a) 2,856,216 0o Actual Actual Budget FY 2018 Budget Projected Variance $ 12,512,572 $ 9,884,648 79% e) f) $ 12,563,521 $12,694,668 131,147 673,598 3,535,690 124% a) 2,856,216 5,750,000 2,893,784 9,950,347 7,467,800 68% b) 11,044,000 8,834,900 (2,209,100) 1,143,411 1,077,700 83% 1,293,910 1,293,910 - 909,870 888,465 92% 964,397 965,296 899 938,760 939,157 91% 1,037,735 1,066,003 28,268 574,848 186,322 29% 650,866 548,134 (102,732) 335,616 473,920 130% 364,370 509,675 145,305 1,846,627 682,865 71% f) 957,457 1,435,356 477,899 510,428 - N/A - - - 602,998 1,153,034 382% c) 302,170 1,397,200 1,095,030 166,903 122,601 61% 200,000 202,500 2,500 206,999 351,441 31% e) 1,147,193 770,287 (376,906) 156,399 528,163 350% g) 151,000 593,000 442,000 157,603 131,745 84% 157,603 131,745 (25,858) 127,000 127,000 100% 127,000 127,000 - 260,545 179,945 91% 198,000 215,000 17,000 99,844 90,371 62% 145,000 108,500 (36,500) 386,400 384,465 93% 413,083 429,387 16,304 31,560,767 28,205,334 82% 34,573,521 37,072,561 2,499,040 24,133,045 22,826,887 79% d) 28,922,478 27,570,916 1,351,562 10,989,018 8,531,461 64% 13,270,073 12,957,690 312,383 135,653 160,185 15% 1,100,000 1,232,000 (132,000) 35,257,716 31,518,532 73% 43,292,551 41,760,606 1,531,945 4,684,193 3,820,161 83% 4,584,193 4,584,193 - 445,740 367,740 75% 490,320 490,320 4,238,453 3,452,421 84% 4,093,873 4,093,873 - 541,504 139,222 (4,625,157) (594,172) 4,030,985 7,688,209 8,229,714 98% 8,434,473 8,229,714 (204,759) $ 8,229,713 $ 8,368,936 $ 3,809,316 $ 7,635,542 $ 3,826,226 Beginning Net Working Capital per FY 2019 Proposed Budget $ 7,202,714 a) Collections from CCBHC have exceeded the amount forecasted for FY 18. Remaining months of FY 18 have been adjusted to reflect this trend. b) Projection based on FY 2017 collections and anticipated withholdings for panel providers. c) Title 19 revenue during the CCBHC demonstration project will be reimbursed at a higher rate than in prior years. d) Projections based on YTD unfilled positions and forecasted unfilled positions during the remainder of the year. e) State Grants reclassed to State Misc for presentation purposes. f) Reclassification from State Grants to Local Grants for presentation purposes of approximately $412k. g) State remitted the substance -abuse component of marijuana tax to Health Departments in accordance with Measure 91. The substance -abuse component is 20% of the Measure 91 overall tax. Amounts received were for the taxing period of 07/112017-03/31/2018. NOTE: Year-end projections for Health Service Programs are updated monthly. Projection amounts will fluctuate from month to month. Page 4 Revenues Admin- Operations Admin- GIS Admin- Code Enforcement Building Safety Electrical Env Health- On Site Prog Planning- Current Planning- Long Range Total Revenues Expenditures (by division) Admin -Operations Admin -GIS Admin -Code Enforcement Building Safety Electrical Env Health -On Site Pgm Planning -Current Planning -Long Range Total Expenditures Net from Operations Transfers Out To CDD Reserve Funds Change in Fund Balance Beginning Fund Balance Ending Fund Balance Community Development Schedule of Financial Operating Data Year to Date July 1, FY 2017 2017 through April 30, 2018 (83% of the Actual 0 Actual I Budget FY 2018 Revised Budget I Projected Variance $ 110,639 $ 109,702 108% $ 102,042 $ 126,190 $ 24,148 230 - 0% 150 150 - 451,837 481,630 85% 565,544 571,544 6,000 2,903,075 2,542,064 86% a) 2,948,636 3,007,413 58,777 745,810 596,955 80% 743,927 730,618 (13,309) 678,469 660,397 97% a) 680,460 731,266 50,806 1,530,513 1,517,967 94% a) 1,614,855 1,697,710 82,855 577,420 490,142 6,398,857 72% 87% 682,919 7,338,533 581,052 7,445,943 (101,867) 107,410 6,997,993 1,750,586 1,576,617 74% b) 2,117,813 2,017,144 100,669 136,312 161,087 114% 141,439 201,548 (60,109) 357,992 337,637 75% b) 448,238 443,983 4,255 1,249,842 1,108,666 73% b) 1,524,982 1,393,285 131,697 320,568 275,934 69% b) 398,758 359,341 39,417 399,914 386,053 85% 456,234 461,894 (5,660) 1,179,944 1,063,451 72% b) 1,479,295 1,335,095 144,200 390,649 287,552 5,196,997 1,201,860 617,658 584,202 51% b) 73% 593% 76% 569,088 7,135,847 202,686 813,610 (610,924) 374,011 6,586,301 859,642 823,610 36,032 195,077 549,546 656,956 10,000 646,956 5,785,807 1,212,186 1,375,000 (162,814) 2,330,492 2,167,678 $ 2,751,880 132% $ 1,640,386 1,029,462 $ 2,167,678 2,203,710 527,292 $ 1,174,248 $ 2,167,678 Beginning Net Working Capital per FY 2019 Proposed Budget $ 2,203,711 a) Projection increased due to higher than expected permit application volume b) Projection decreased due to year to date unfilled positions. Page 5 Revenues Motor Vehicle Revenue Federal - PILT Payment Other Inter -fund Services Federal Reimbursements Cities-Bend/Red/Sis/La Pine State Miscellaneous Forest Receipts Sale of Equip & Material Mineral Lease Royalties Assessment Payments (P&I) Interest on Investments Miscellaneous Total Revenues Expenditures Personnel Services Materials and Services Capital Outlay Total Expenditures Transfers Payment from Solid Waste Transfers Out Total Transfers Change in Fund Balance Beginning Fund Balance Ending Fund Balance Road Schedule of Financial Operating Data 362,453 - 9,067,643 6,000,000 (8,705,190) (6,000,000) (6,064,098) (269,231) 14,840,939 1 8,776,841 $ 8,776,841 $ 8,507,610 100% 6,000,000 6,000,000 - 100% (6,000,000) (6,000,000) 4% (6,228,568) 385,178 6,613,746 101% 8,684,589 8,776,841 92,252 $ 2,456,021 $ 9,162,019 $ 6,705,998 Beginning Net Working Capital per FY 2019 Proposed Budget $ 8,693,653 a) HB 2017 increase for FY 18: $1.04M. b) PILT payment received in July was less than budgeted. c) Weed spraying and vehicles repairs anticipated to be less than budgeted. d) FLAP reimbursement based on projected completed projects. e) Contracted work is anticipated to be less than budgeted. f) ODOT allocation work more than budgeted. $20k revenue from State TSAP grant was not budgeted. g) Receipts are anticipated to be less than budgeted. h) Sale of weed spray anticipated to be less than budgeted. i) Assessment payments are trending less than budgeted. k) $8,000 for Nash fire sign rental and $3,800 electric rebate not included in FY 2018 budgeted resources 1) Projections based on YTD actual unfilled positions and remaining months are projected to be the same as March. m) $4.8 million, appropriated in FY 2018 for cost of overlays, will be expended in future years. Road Striping Materials and Aggregate anticipated to be $365K less than budgeted. Engineering, Contract Road Services and Temp Labor anticipated to be $374K less than budgeted. n) Right of way acquisition and traffic safety budgeted in Fund 325 will be expended from Fund 465. Page 6 Year to Date July 1, FY 2017 2017 through April 30, FY 2018 2018 (83% of the year) % of Actual Actual Budget Budget Projected Variance $ 12,930,670 $ 11,283,618 85% a) $ 13,260,000 $ 14,300,000 $ 1,040,000 1,323,365 1,574,248 97% b) 1,623,000 1,574,248 (48,752) 1,065,930 507,842 34% c) 1,501,525 1,474,525 (27,000) - - 0% d) 955,549 591,549 (364,000) 488,114 108,304 15% e) 710,000 534,837 (175,163) 593,969 719,328 110% f) 651,213 728,482 77,269 381,533 384,807 96% g) 400,000 384,807 (15,193) 273,353 262,612 69% h) 381,900 332,272 (49,628) 183,312 57,100 33% 175,000 175,000 - 87,079 89,153 101% i) 88,000 93,000 5,000 112,444 90,753 101% j) 90,000 107,281 17,281 50,391 56,670 138% k) 41,092 64,100 23,008 17,490,159 15,134,435 76% 19,877,279 20,360,101 462,822 5,877,065 4,857,349 79% 1) 6,161,974 5,837,101 324,873 8,903,281 4,515,164 33% n) 13,715,873 8,091,822 5,624,051 68,721 31,153 14% m) 228,000 46,000 182,000 14,849,067 9,403,666 47% 20,105,847 13,974,923 6,130,924 362,453 - 9,067,643 6,000,000 (8,705,190) (6,000,000) (6,064,098) (269,231) 14,840,939 1 8,776,841 $ 8,776,841 $ 8,507,610 100% 6,000,000 6,000,000 - 100% (6,000,000) (6,000,000) 4% (6,228,568) 385,178 6,613,746 101% 8,684,589 8,776,841 92,252 $ 2,456,021 $ 9,162,019 $ 6,705,998 Beginning Net Working Capital per FY 2019 Proposed Budget $ 8,693,653 a) HB 2017 increase for FY 18: $1.04M. b) PILT payment received in July was less than budgeted. c) Weed spraying and vehicles repairs anticipated to be less than budgeted. d) FLAP reimbursement based on projected completed projects. e) Contracted work is anticipated to be less than budgeted. f) ODOT allocation work more than budgeted. $20k revenue from State TSAP grant was not budgeted. g) Receipts are anticipated to be less than budgeted. h) Sale of weed spray anticipated to be less than budgeted. i) Assessment payments are trending less than budgeted. k) $8,000 for Nash fire sign rental and $3,800 electric rebate not included in FY 2018 budgeted resources 1) Projections based on YTD actual unfilled positions and remaining months are projected to be the same as March. m) $4.8 million, appropriated in FY 2018 for cost of overlays, will be expended in future years. Road Striping Materials and Aggregate anticipated to be $365K less than budgeted. Engineering, Contract Road Services and Temp Labor anticipated to be $374K less than budgeted. n) Right of way acquisition and traffic safety budgeted in Fund 325 will be expended from Fund 465. Page 6 Adult Parole Probation Schedule of Financial Operating Data Year to Date July 1, FY 2017 2017 through April 30, 2018 (83% of the year) % of Actual I Actual Budget FY 2018 Variance Revenues DOC Grant in Aid SB 1145 $ 3,650,168 $ 4,333,329 110% a) $ 3,940,708 $ 4,333,329 $ 392,621 CJC Justice Reinvestment 845,836 844,831 121% b) 699,506 844,831 145,325 DOC Measure 57 240,315 233,900 100% c) 234,315 233,900 (415) Electronic Monitoring Fee 133,292 118,522 70% d) 170,000 140,000 (30,000) Probation Superv. Fees 209,708 157,022 75% d) 210,000 190,000 (20,000) DOC -Family Sentence Alt 110,797 114,683 - a) - 114,683 114,683 Interfund - Sheriff 50,000 41,667 83% 50,000 50,000 - Gen Fund/Crime Prevention 50,000 37,500 75% j) 50,000 50,000 - DOJ/Arrest Grant 46,736 11,684 106% 11,000 11,684 684 Alternate Incarceration 29,985 6,908 34% i) 20,035 6,908 (13,127) State Subsidy 16,367 16,336 105% a) 15,610 17,000 1,390 Interest on Investments 28,990 28,924 289% f) 10,000 33,000 23,000 Probation Work Crew Fees 5,958 1,366 23% d) 6,000 1,500 (4,500) State Miscellaneous - - 0% k) 4,300 - (4,300) Miscellaneous 1,256 497 99% f) 500 600 100 Total Revenues 5,419,408 5,947,169 110% 5,421,974 6,027,435 605,461 Expenditures Personnel Services 4,097,354 3,498,780 79% e) 4,455,860 4,250,000 205,860 Materials and Services 1,509,684 1,220,437 68% h) 1,805,865 1,500,000 305,865 Capital Outlay 15,986 31,960 - g) 38,000 28,434 9,566 Total Expenditures 5,623,023 4,751,176 75% 6,299,725 5,778,434 521,291 Transfers Transfers In -General Fund 451,189 375,991 83% 451,189 451,189 - Transfer to Vehicle Repl/Maint 22,000 33,000 75% 44,000 44,000 - Total Transfers 429,189 342,991 84% 407,189 407,189 - Change in Fund Balance 225,574 1,538,983 (470,562) 656,190 1,126,752 Beginning Fund Balance 1,465,370 11690,943 123% 1,375,000 1,690,943 315,943 Ending Fund Balance $ 1,690,943 $ 3,229,926 Budget $ 904,438 $ 2,347,133 $ 2,200,000 $ 1,442,695 Beginning Net Working Capital per FY 2019 Proposed a) Projection increased due to additional revenue being granted by legislature after budget adoption. b) Legislature increased grant subsequent to adoption of FY 2018 budget. c) Annual payment received in January 2018. Projection decreased due to less than anticipated revenue granted by legislature after budget adoption. d) Projected to be less than anticipated revenue related to electronic monitoring, supervision, and work crew fees e) Projected to be less than appropriated due to vacancies. Includes expected Class/Comp increase. f) Projection based on trending. g) Projection increased due to unanticipated purchases related to security. h) Projected to be less than anticipated expenditure related to offender treatment contract payments and data dashboard. i) State prison transition program elimated. j) General Fund grant received quarterly k) Reimbursement for offender services not expected to be utilized this fiscal year. Page 7 Solid Waste Schedule of Financial Operation Data Year to Date July 1, FY 2017 2017 through April 30, 2018 (83% of the year) Actual § Actual I Budget Operating Revenues Franchise Disposal Fees 5,459,396 5,031,041 79% 6,391,644 6,188,263 (203,381) Private Disposal Fees 2,095,262 2,034,196 101% 2,012,522 2,532,121 519,599 Commercial Disp. Fees 1,729,096 1,577,534 91% 1,742,832 1,908,459 165,627 Franchise 3% Fees 254,304 269,352 112% a) 240,000 277,500 37,500 Yard Debris 171,470 155,361 92% 168,000 206,439 38,439 Recyclables 13,467 13,766 115% 12,000 17,887 5,887 Sale of Equip & Material 18,590 - - - - - Special Waste 28,812 8,952 36% b) 25,000 13,433 (11,567) Interest 31,959 17,229 86% 20,000 20,000 - Leases 10,801 8,101 75% 10,801 10,801 - Miscellaneous 59,241 48,044 137% 35,000 56,264 21,264 Total Operating Revenues 9,872,398 9,163,576 86% 10,657,799 11,231,167 573,368 Operating Expenditures Personnel Services 2,049,320 1,797,623 79% 2,278,466 2,154,396 124,070 Materials and Services 4,334,705 3,370,956 69% d) 4,859,217 5,034,585 (175,368) Capital Outlay 127,449 80,298 64% 125,000 108,631 16,369 Debt Service 858,512 310,982 36% c) 861,102 861,102 - Totai Operating Expenditures 7,369,985 5,559,858 68% 8,123,785 8,158,714 (34,929) Transfers Out SW Capital & Equipment Reserve 3,075,000 2,572,500 100% 2,580,000 2,580,000 - Total Transfers Out 3,075,000 2,572,500 100% 2,580,000 2,580,000 - Change in Fund Balance (572,588) 1,031,218 (45,986) 492,453 538,439 Beginning Fund Balance 1,810,265 1,237,677 201% 615,872 1,237,677 621,805 $ 1,237,677 $ 2,268,895 Budget $ 569,886 $ 1,730,130 $ 1,730,130 $ 1,160,244 Beginning Net Working Capital per FY 2019 Proposed a) Franchise fee payment is due on May 15, 2018. b) Special Waste revenues are received for special clean-up projects and are difficult to budget and project c) Debt Service payments are made in November and May. d) Projection includes a contract for solid waste management plan. Appropriation in other Solid Waste funds is available for the authority to expend. Page 8 Risk Management Schedule of Financial Operating Data Revenues 327,505 Year to Date July 1, 87% 345,627 FY 2017 2017 through April 30, 2018 (83% of the FY 2018 146,503 157,899.08 year) 226,699 226,699 General Liability ao $ 876,069 83% Actual Actual I Budget Bud et Projected I Variance Revenues 327,505 300,883 87% 345,627 355,000 (9,373) Inter -fund Charges: 146,503 157,899.08 70% 226,699 226,699 General Liability $ 931,319 $ 876,069 83% $ 1,051,283 $ 1,051,283 $ Property Damage 389,101 326,285 83% 391,542 391,542 (24,373) Vehicle 197,155 162,571 83% 195,085 195,085 Workers' Compensation 1,228,053 1,034,765 83% 1,241,718 1,241,718 109% Unemployment 280,921 296,273 84% 354,609 354,609 Claims Reimb-Gen Liab/Property, 33,863 335,517 1118% a) 30,000 340,000 310,000 Process Fee-Events/Parades 1,980 1,440 80% 1,800 1,800 - Miscellaneous 30 1,548 5160% 30 1,600 1,570 Skid Car Training 43,853 38,932 122% 32,000 40,000 8,000 Interest on Investments 58,644 68,195 93% 73,464 73,464 TOTAL REVENUES 3,164,919 3,141,596 93% 3,371,531 3,691,101 319,570 Direct Insurance Costs: GENERAL LIABILITY Settlement / Benefit 711,705 68,246 Defense 27,039 25,008 Professional Service 6,250 12,440 Insurance 339,723 212,032 Loss Prevention 1,347 Miscellaneous 171 - Repair / Replacement 33,673 1,166 Total General Liability 1,119,908 318,892.33 40% 800,000 450,000 350,000 PROPERTY DAMAGE Property Damage Charges 196 Insurance 5,101 173,873 Loss Prevention 12.000 - Repair /Replacement 122.074 14,779 Total Property Damage 139,175 188,848.26 88% b) 215,000 350,000 (135,000) VEHICLE Professional Service 781 Insurance 5101 Loss Prevention 25,397 1,317 Miscellaneous 6,985 - Repair / Replacement 102,994 86,226 Total Vehicle 136,157 92,643.82 93% 100,000 130,000 (30,000) WORKERS' COMPENSATION Settlement / Benefit 539,792 619,564 Professional Service 6,250 34,429 Insurance 159,212 129,493 Loss Prevention 49,683 55,507 Miscellaneous 52,937 25,254 Total Workers' Compensation 807,875 864,247.13 96% 900,000 1,200,000 (300,000) UNEMPLOYMENT - SettiementlBenefits 56,497 30,959.79 21% 150,000 50,000 100,000 Total Direct insurance Costs 2,_259,612 1,495,591 69% 2,165,000 2,180,000 (15,000) Insurance Administration: Personnel Services 327,505 300,883 87% 345,627 355,000 (9,373) Materials & Srvc, Capital Out. & Tranfs. 146,503 157,899.08 70% 226,699 226,699 Total Insurance Administration 474,008 458,782 80% 572,326 581,699 (9,373) Total Expenditures 2,733,620 1,954,373 71% c) 2,737,326 2,761,699 (24,373) Change in Fund Balance 431,299 1,187,223 634,205 636,576 2,371 Beginning Fund Balance 4,928,271 5,359,570 109% 4,897,636 5,359,570 461,934 Ending Fund Balance $ 5,359,570 $ 6,546,793 $ 5,531,841 $ 5,996,146. $ 464,305 Beginning Net Working Capital per FY 2019 Proposed Budget $ 5,600,000 a) Claims reimbursement includes insurance payment of $254,199 for Fair/Expo roof damage. b) Projection includes expenditure for the Fair/Expo roof replacement. c) Apprropriaton will be transferred from Contingency to the Program Budget. Page 9 Revenues Property Taxes - Current Property Taxes - Prior Property Taxes - Jefferson County State Reimbursement State Grant Telephone User Tax Data Network Reimb. User Fee Police RMS User Fees Contract Payments Miscellaneous Interest Total Revenues Expenditures Personnel Services Material and Services Capital Outlay Total Expenditures Transfers Transfers In Transfers Out Total Transfers Change in Fund Balance Beginning Fund Balance Ending Fund 705 & 707 Balance Ending Bal. DC Reserve (710) Total of Funds 705, 707 and 710 DC 9-1-1 (Funds 705 and 707) Schedule of Financial Operating Data FY 2018 Projected ( Variance $ 7,496,065 $ 7,728,528 97% a) Year to Date July 1, FY 2017 2017 through April 30, 109,702 2018 (83% of the year) 131% 85,000 a0 Actual Actual Budget FY 2018 Projected ( Variance $ 7,496,065 $ 7,728,528 97% a) $ 7,926,725 $ 7,958,528 $ 31,803 109,702 111,703 131% 85,000 120,900 35,900 32,518 31,026 94% a) 33,000 33,000 - 869,734 30,000 27% b) 110,000 30,000 (80,000) 276,510 - NIA - - - 865,111 445,421 51% c) 880,000 880,000 - 86,263 - 0% 55,000 68,638 13,638 58,981 59,099 66% 90,000 59,280 (30,720) 326,030 68,552 27% d) 250,119 259,496 9,377 130,756 - 0% 193,000 - (193,000) 3,562 15,093 56% 27,000 20,000 (7,000) 105,258 80,923 126% 64,000 89,500 25,500 10,360,491 8,570,345 88% 9,713,844 9,519,342 (194,502) 5,867,156 5,628,770 80% 7,070,919 6,770,919 300,000 3,254,372 2,585,344 85% b) 3,047,724 2,937,724 110,000 4,941,447 1,604,310 73% 2,210,000 2,210,000 - 14,062,974 9,818,423 80% 12,328,643 11,918,643 410,000 400,000 1,300,000 100% 1,300,000 1,300,000 - - 493,863 N/A 493,863 493,863 - 400,000 806,137 100% 806,137 806,137 - (3,302,483) (441,941) (1,808,662) (1,593,164) (604,502) 10,563,485 7,261,002 110% 6,600,000 7,261,001 661,001 $ 7,261,002 $ 6,819,061 $ 4,791,338 5,667,837 $ 876,499 3,394,078 2,622,583 2,433,863 2,634,583 200,720 $ 8,302,420 =und 705 & 707 Beginning Net Working Capital per FY 2019 Proposed Budget $ 6,000,000 =und 710 Beginning Net Working Capital per FY 2019 Proposed Budget 2,625,000 $ 8,625,000 a) Based on prior years' collection patterns, 97% of Property Taxes - Current have been received through April. Taxes received in May and June projected to be $230,000 b) Four workstations will not be purchased as the State will not be providing the resources. c) Q3 payment expected by the end of May. Page 10 Revenues: Internal Premium Charges Part -Time Employee Premium Employee Monthly Co -Pay COIC Retiree / COBRA Co -Pay Prescription Rebates Claims Reimbursements & Misc Interest Total Revenues Expenditures: Materials & Services Admin & Wellness Claims Paid -Medical Claims Paid -Prescription Claims Paid-DentalNision Stop Loss Insurance Premium State Assessments Administration Fee (TPA) Preferred Provider Fee Other - Administration Other - Wellness Admin & Wellness Deschutes On-site Clinic Contracted Services Medical Supplies Other Total DOC Deschutes On-site Pharmacy Contracted Services Prescriptions Other Total Pharmacy Total Expenditures Change in Fund Balance Beginning Fund Balance Ending Fund Balance Health Benefits Fund Statement of Financial Operating Data FY 2018 July 1, 2017 through April 30, 2018 FY 2017 1 FY 2018 Actual Actual % of Budget Projection I $ Variance $ 16,955,229 2,585 923,805 2,165,312 1,202,895 52,995 82,361 168,140 21,553,322 $ 14,648,742 1,980 793,035 1,516,669 1,044,189 48,655 116,243 177,684 18,347,198 87% a) 16,865,000 17,578,490 713,490 NIA a) - 2,376 2,376 86% a) 925,000 960,035 35,035 68% a) 2,224,000 1,820,003 (403,997) 86% 8) 1,211,803 1,253,027 41,224 N/A 446,950 - 48,655 48,655 77% d) 150,000 116,243 (33,757) 85% 0) 210,000 213,221 3,221 85% (450,566) 21,585,803 21,992,051 406,248 13,016,901 11,408,283 81% b) 14,125,000 13,496,639 628,361 977,260 1,032,877 97% b) 1,060,000 1,239,679 (179,679) 2,141,054 1,660,501 72% b) 2,315,000 1,999,234 315,766 366,633 402,557 95% c) 425,000 446,950 (21,950) 6,269 - 0% 6,600 6,600 461,375 503,989 108% c) 465,000 915,566 (450,566) 91,904 74,143 114% c) 65,000 83,017 (18,017) 221,307 136,029 63% 214,431 214,431 174,028 132,856 74% 178,900 178,900 - 17,456,731 15,351,236 81% 18,854,931 18,581,016 273,915 953,281 709,389 73% c) 975,000 992,229 (17,229) 72,219 50,134 59% c) 85,000 96,400 (11,400) 45,308 24,915 54% 45,943 45,943 1,070,808 784,438 71% 1,105,943 1,134,572 (28,629) 382,900 206,916 66% c) 312,000 268,186 43,814 1,728,845 1,175,869 69% C) 1,700,000 1,618,086 81,914 34,083 72,749 111% 65,418 107,447 (42,029) 2,145,828 1,455,533 70% 2,077,418 1,993,719 83,699 20,673,366 17,591,208 80% 22,038,292 21,709,307 328,985 879,955 755,990 (452,489) 282,743 735,232 14,502,622 15,382,578 103% 15,000,000 15,382,578 382,578 15,382,578 $ 16,138,567 $ 14,547,511 $ 15,665,321 $ 1,117,810 % of Exp covered by Revenues 1 104.26%11 104.30% 87.95io 1u-I.Ju% Beginnin Net Working Capital per FY 2019 Proposed Budget 16,051,586 a) Year to Date Annualized b) Year to Date Actual. May and June estimated at 8% increase over prior year May and June. c) Projection: Year to Date actual plus encumbrances. d) $20,000 Pacific Source for "Wellness/Implement Grant", $22,792 Aetna PPO Rebate, $130 EBMS Rebate, $73,321 Stop Loss Refund Page 11 FAIR AND EXPO CENTER Schedule of Financial Operating Data Year to Date July 1, 2017 through April 30, 2018 (83% of the year) Operating Revenues FY 2018 Budget General F & E Activities FY 2017 [FY018 Year to Date Actual $ 370,512 68% Storage 66,879 TRT Grant 81,588 % of Camping at F & E ActualActual 812,908 Budget 38% Operating Revenues FY 2018 Budget General F & E Activities Events Revenues $ 538,512 $ 370,512 68% Storage 66,879 TRT Grant 81,588 126% Camping at F & E 21,148 812,908 7,600 38% Horse Stall Rental 34,953 1 11,757 29% Food &Beverage Activities, net 119,129 0% 75,587 63% a) Annual County Fair (net) 440,000 i Other: 287,452 67% b) Interfund Contract 30,000 30,000 25,000 83% c) Miscellaneous 14,198 91,899 4,292 57% Total Operating Revenues 1,264,818 1 863,788 69% Operating Expenditures, net of TRT: FY 2018 Budget General F & E Activities Transfer In -General Fund 250,000 $ 505,775 Personnel Services 940,667 848,774 81% d) TRT Grant (188,255) (178,079) 89% Materials and Services 812,908 802,607 66% TRT Grant (167,827) (200,778) 32% Capital Outlay - 1 0% Total Operating Exp, net of TRT i 1,397,493 1,272,524 88% i Other: 56,660 56% Total Non -Operating Expenditures Park Acq/Dev (Fund 130) 30,000 22,500 75% Rights & Signage 116,130 91,899 78% Interest 1,789 459 46% Total Other 147,919 1 114,858 77% Transfers In / Out FY 2018 Budget Projected Transfer In -General Fund 250,000 $ 505,775 166,667 83% Transfer In -Room Tax - (Fund 160) 25,744 20,000 21,453 83% Trans In(Out)-Fair & Expo Reserve 55,000 1,757 - 0% Total Transfers In 220,744 287,452 188,120 30,000 Non -Operating Rev & Exp - 7,500 9,792 2,292 Debt Service 102,536 (167,454) 56,660 56% Total Non -Operating Expenditures 102,536 (231,179) 56,660 56% Change in Fund Balance 133,452 Beginning Fund Balance 47,283 Ending Fund Balance 180,735 FY 2018 Budget Projected Variance 544,000 $ 505,775 $ (38,225) 65,000 81,588 16,588 20,000 24,600 4,600 41,000 42,757 1,757 120,695 109,403 (11,292) 430,626 287,452 (143,174) 30,000 30,000 - 7,500 9,792 2,292 1,258,821 1,091,367 (167,454) 1,050,695 1,020,135 30,560 (200,000) (231,179) 31,179 1,223,563 977,607 245,956 (635,070) (226,828) (408,242) 15,000 - 15,000 1,454,188 1,539,735 (85,547) 30,000 30,000 - 118,000 110,199 (7,801) 1,000 459 541 149,000 140,658 (8,342) (46,367) (307,709) (261,342) 200,000 200,000 25,744 25,744 - 105,452 - 105,452 120,292 225,744 105,452 101,824 101,824 101,824 101,824 (27,899) (183,789) (155,890) 225,000 180,735 44,265 $ 197,101 $ 3,054 $ 200,155 Change in Fund Balance 133,452 Beginning Fund Balance 47,283 Ending Fund Balance 180,735 (162,417) 180,735 80% $ 18,319 Beginning et Working Capitalper _ _ _Proposed Budget - a) See "Food & Beverage Activities Schedule" b) Revenues and Expenses for the annual County Fair are recorded in a separate fund and the available net income is transferred to the Fair & Expo Center Fund c) Reimbursement from RV Park for personnel expenditures recorded in F&E d) Personnel projection based on February actual Page 12 M 0) 'O O Ca 00 e0+ o O O N r fif� O O ' O ' N O o O O N O o (o h N O O O O O Cn CO h (o O O CO V) CO r d O N w N o co aj CO 0 0 O O 0 0 O 'r r 0 O O d' N "' O to U) h h (C) M r us O N O �- to O) (o O N r Qw r M CD o O �- P- h 0 O) M N N O) h 0) h ( ao h h co O oo a) M LLi N 0) — D) � h O) (O m O � O (n M nj O N M M h r N oo V) O M N •f 0) N M (O a CO h (O Ld d M N O N�(� O N N O N h r N N h 0O r M O N iO a N V CO h o 0) U) v (O c) 'V' Sf h to = (o h N h «7 Q) O m O (O r O h W h M V o0 O N r w 0) (D N 0) N M ocN h O O LO M N r N as a co V' 47 �- (O .Q d' M � It, O) 0) o M O M M o N h h O (O In N N N (O h CO O) O O O M M O h (o of O r M O) (n M N O) N O P M ti op 11a M dam" M CO N M NO r lL' Ln to ODM a O m to O e "T O h (n N N (0 Ln (o to It N 00 M oc M W r to N (D O) N N M N h to LO O ccN m (h N r (o M 0 h N Moo O) w a rr M N to M NNC'N7 r r r r ( IL V), Hba N h to o M 0) O) co 0 ci c0 co h CC) U)N � 0 to 0 O (O O O N m M O N ' M M Q) CO M CO V' O O at co N (h r M N ti h 7 to CO f� N('') M N a d C N � N r N •- N N r `- r r Qtn 00 co tl' N o N CO O) a CT CD co 0) (n el' d' N CO 9 d' co O to N w 00 a) -q O M cf r h (n Ln Ct O M O �l Cn E 40 0) ' m d" NNN CO N R r N (n O r r in r r r y NE 0 N r r r a) C Q r (o 0) I- o to CO r- d' o M M Cn OD co 0) (o O N N M (o O N O U O) •0 N t0 d' (n .- c0 N d_ of O) h N CO M CO c0 " O O O W CA to O h N r LO T M (O N N ;:M N N N X > rim z (n a► N 'OO to (n co tD o 0) CO CD O a (O t0 to N 0o Oo N Vt O d' CO co 0 h h d' d) ml Oil ❑ (0P M (b N a) r CO M 00 N M ('C- O O In N O) (D w N r- O r r M O U M N r r LL ,9 n M C O c0 M V co 0 V' V M h O O N d r 0) co OD O h h E (U aj M N M V N �- M O O) op r CL eA l UD h O) co M�t o CO w cod" M Co �1 r 1� V) O (O N O) M oo d M CD O) i,- LQ -'rO h O N O r M h O co W) 0) tO O) (D M r O) r (+1 7 M N M N N r Q � N9 c0 M c0 0) N o CO CO t to o M M c0 -t N IA O M V I.- O N c0 O LO (f) (o co 0o O CO N CA to m00 (� O M r (D Co _T 7 to tO r r CM � iV O r r -) N N N r r H � O M h o N (O to V) o CO h m v M O) j co N M O LO O N M M I O M Cn O d' O LO N N h N r U Q co M Q) O W O V' tf) O M t0 CC) M r M M to 0) - h V O O O tO O (O O) r- NNN N N NON N M N— M r h r �-N r r } O W cm P N N >+ C (D •� QI N CID 0 N N N o -0 a N m -0Q, d c °o d aNi .� 0>)rn LL w c o a m N> — S o U, a w H H (n n M o ,. m y v o Li �> JE;o) dd vm aicm KO UUYa. W c c Oyn w-Cw a o >m w� a Ua aCL o o o 5 p C7 0 0 l'- w r Revenues Court Fines & Fees Interest on Investments Total Revenues Expenditures Personnel Services Materials and Services Total Expenditures Net from Operations Transfers Transfers In- General Fund Total Transfers Change in Fund Balance Beginning Fund Balance Ending Fund Balance Justice Court Schedule of Financial Operating Data Year to Date July 1, 2017 through FY2017 April 30, 2018 (83% of the year) % of Actual I Actual I Budget $ 545,628 $ 487,820 92% a) $ 530,000 $ 585,384 $ 55,384 1,348 1,099 73% 1,500 1,300 (200) 546,976 1 488,919 92% 531,500 586,684 55,184 467,419 383,352 79% b) 486,471 465,000 21,471 153,817 118,192 83% c) 142,392 141,827 565 621,236 501,545 80% 628,863 606,827 22,036 (97,363) (20,143) 77,220 25,000 58,333 83% 70,000 70,000 - 25,000 58,333 83% 70,000 70,000 - (49,260) 1 45,708 (27,363) 49,857 77,220 161,702 112,442 132% 85,000 112,442 27,442 $ 112,442 $ 158,150 $ 57,637 $ 162,299 $ 104,662 Beginning Net Working Capital per FY 2019 Proposed Budget $ 144,000 a) Year to date annualized. b) Based on projected payroll in budget central c) Projected based on outstanding obligations related to rent, utilities, and internal services. Page 14 Deschutes County Room Taxes (Funds 160 and 170) Budget and Actual - FY 2018 YTD April 2018 EXPENDITURES Combined FY 2017 Fund 160 - 7% of TRT Fund 170 - 1% Combined - 8% TRT Budget Actual Budget Budget Actual % of Budget REVENUESRoom Taxes $ 6,456,242 $ 5,880,000 $ 5,493,181 $ 840,000 jActual $ $ 6,720,000 $ 6,277,926 93.4% Interest 16,338 10,000 18,993 7,000 960 17,000 25,949 152.6% Total Revenues 6,472,579 5,890,000 5,512,174 847,000 ISF 6,737,000 6,303,875 93.6% EXPENDITURES Administrative Auditing Services 10,000 10,937 - 1,563 - 12,500 Temporary Help 2,457 7,064 847 113 7,064 960 Interfund Contract 80,275 48,238 40,198 9,048 6,699 57,286 46,898 ISF 49,223 32,287 26,906 15,305 12,754 47,592 39,660 Public Notices 1,680 2,669 1,225 381 175 3,050 1,400 Printing 994 1,881 1,212 269 173 2,150 1,385 Office Supplies 171 897 128 - 1,025 - Postage 835 2,647 852 378 122 3,025 974 Total Administrative 145,635 106,620 71,241 27,072 20,036 133,692 91,277 Current Distributions Sheriff's Office 3,151,787 3,151,787 2,626,489 - 3,151,787 2,626,489 Sunriver Service Dist 44,500 200,000 200,000 - COVA (20% of the 6%) 899,886 982,256 864,205 982,256 864,205 COVA (100% of the 1%) 791,247 820,164 724,217 - 820,164 724,217 Grants Third Party Grants - - 8,000 8,000 Inter -fund Grants F&E Center 356,082 839,242 378,857 839,242 378,857 Annual County Fair 107,718 70,000 113,391 70,000 113,391 RV Park 37,871 - - 70,000 31,938 70,000 31,938 Inter -fund Transfers General Capital Reserve 489,049 ME Center 25,744 25,744 21,453 - 25,744 21,453 F&E Reserve Fund 224,703 - 245,978 184,484 245,978 184,484 Total Distributions 6,128,586 5,179,951 4,236,365 1,225,220 716,669 6,405,171 4,953,033 Total Expenditures 6,274,221 5,286,571 4,307,606 1,252,292 736,705 6,538,863 5,044,310 Change in Balance 198,358 603,429 1,204,569 (405,292) 54,995 198,137 1,259,564 Beginning Balance 718,698 407,000 449,923 405,292 467,133 812,292 917,056 Ending Balance $ 917,056 $ 1,010,429 $ 1,654,491 $ - $ 522,129 $ 1,010,429 $ 2,176,620 Page 15 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 May 16, 2018 DATE: May 10, 2018 FROM: Anthony Raguine, Community Development, 541-617-4739 TITLE OF AGENDA ITEM: Potential Marijuana Production Appeal, 23450 Walker Road, Order 2018-036 RECOMMENDATION & ACTION REQUESTED: On May 9, 2018, planning staff issued an approval to allow Briteside Oregon, LLC to establish a marijuana production facility at 23450 Walker Road. The 12 -day appeal period ends on May 21, 2018. Attached is an order which would allow the Board to review any timely filed appeal of 247 -17 -000833 -AD. ATTENDANCE: Anthony Raguine, Senior Planner STAFF MEMO Date: May 10, 2018 To: Board of County Commissioners From: Anthony Raguine, Senior Planner Re: Administrative Decision (File No. 247 -17 -000833 -AD) to Hear Potential Appeal The Board of County Commissioners (Board) will conduct a work session on May 16, 2018, at 1:30 PM and will consider hearing a potential appeal of an administrative decision (File No. 247 -17 -000833 -AD) approving a marijuana production application. I. Application On October 11, 2017, an application was filed for an Administrative Determination (AD) to establish a marijuana production facility in the Exclusive Farm Use (EFU) Zone at 23450 Walker Road, Bend. The proposal includes use of an existing structure and the establishment of a new structure for marijuana production. In total, the applicant proposes a maximum mature plant canopy size of 20,000 square feet. The application also requests an exception to the 100 -foot setback standard, to allow a 90 -foot setback for the existing structure. The proposed structure will observe setbacks of at least 200 feet from all property lines. II. Decision On January 26, 2018, the application was deemed complete after the applicant submitted additional information. The Planning Division issued an administrative decision without a public hearing for marijuana production on May 9, 2018, determining the applicant met the applicable criteria (Attachment 1). Notice of the decision was sent to neighboring property owners and those that provided comments. The decision becomes final if not appealed by 5:00 PM on May 21, 2018. III. Appeal Although no appeal has been filed yet, staff considers an appeal is likely based on public comments. IV. 150 -day Issuance of a Final Local Decision The 150 -day period for issuance of a final local decision is June 25, 2018. V. Board Options Section 22.28.050 of the Deschutes County Code authorizes the Board of County Commissioners to initiate review of any administrative action or a Hearings Body's decision within 12 days of the date of mailing of the final written decision of the Planning Director or lower Hearings Body. The 12th day following the mailing date of this decision falls on a Saturday, therefore, in accordance with DCC 22.08.070 an appeal must be filed no later than 5:00 PM on Monday, May 21, 2018. Attachment 2 is a Board Order (2018-036) to initiate a de novo review of this file, should a timely appeal be filed. Attachments: 1. Administrative Decision for File No. 247 -17 -000833 -AD 2. Site Plan 3. Board Order to Initiate Review Mailing Date: , Wednesday, May 09, 2018 Community Development Department v Planning Division wDi ilding Safety vision Environmental Soils division Z!!! rt` P.O. Box 6005 117 PVA": Lafayette Avenue Bend, Oregon 97708-6005 Phone: (541) 338-6575 Fax: (541) 335-1764 http://%", ,,a;.deschutes.org/cd FINDINGS AND DECISION FILE NUMBER: 247 -17 -000833 -AD APPLICANT/OWNER: Briteside Oregon LLC PROPOSAL: A request to establish a marijuana production facility in the Exclusive Farm Use Zone. STAFF REVIEWER: Anthony Raguine, Senior Planner 1. APPLICABLE CRITERIA: Title 18 of the Deschutes County Code (DCC), County Zoning Chapter 18.04, Title, Purpose and Definitions Chapter 18.16, Exclusive Farm Use Zone — EFU Chapter 18.116, Supplementary Provisions Title 22, Deschutes County Development Procedures Ordinance II. BASIC FINDINGS: A. LOCATION: The subject property has an assigned address of 23450 Walker Road, Bend. It is identified as tax lot 3400 on County Assessor's map 17-13-00. B. ZONING: The property is zoned Exclusive Farm Use. C. LOT OF RECORD: The subject property is a legal lot of record pursuant to lot of record determination 24 -17 -000210 -LR. D. PROPOSAL: The applicant proposes to establish up to 20,000 square feet of mature canopy area within a new building which will include internal modular structures ranging in size from 4,000 to 18,000 square feet, and within an existing agricultural building. The proposed building will be sited within the building envelope' identified on the plan titled "Site Plan Addendum", dated January 18, 2018. The applicant specifically requests approval to site the proposed new building anywhere within the building envelope. 1 The western building is the existing agricultural building. The eastern building is a representation of the potential location of the proposed building. Quality Services Pe forincrl with Pride E. SITE DESCRIPTION: The subject property is 40 acres in size, and is developed with a dwelling and two accessory buildings. Vegetation on-site consists of irrigated fields and juniper trees. F. PUBLIC AGENCY COMMENTS: The Planning Division mailed notice to several public agencies and received the following comments: Deschutes County Assessor The subject property is receiving farm deferral. Deschutes County Building Division NOTICE: The Deschutes County Building Safety Divisions code mandates that Access, Egress, Setbacks, Fire & Life Safety, Fire Fighting Water Supplies, etc. must be specifically addressed during the appropriate plan review process with regard to any proposed structures and occupancies. Accordingly, all Building Code required items will be addressed, when a specific structure, occupancy, and type of construction is proposed and submitted for plan review. Deschutes County Road Department I have reviewed the application materials for the above -referenced file number, proposing marijuana production with mature canopy up to 20,000 square feet at 23450 Walker Road, Bend (Tax Lot 1713000003400). The subject property is accessed by a private access road which serves and crosses TL 1500 and which connects to Alfalfa Market Rd approximately 2,360 feet west of the subject property. While applicant has provided written consent and a legal description for use of a 40' easement across the southern portion of TL 1500 from the owner of that property (who is also owner of subject property), it is unclear to Road Department staff whether or not the existing road is solely contained within that described easement. Review of the vicinity of the subject property on Deschutes County's Dial website indicates that portions of the existing road may cross south of the southern section line of 17-13-27, which is the southern boundary of TLs 1500 and 3400. If this road does cross south of the section line, then the access requirements of DCC 18.116.330(B)(8)(c) have not been met, as portions of the road would exist on land under the jurisdiction of the Bureau of Land Management rather than inside of the described easement on TL 1500 or on TL 3400. Deschutes County Road Department requests that this application be considered incomplete until the applicant submits information prepared by a licensed surveyor demonstrating that the existing road is located completely within the described easement on TL 1500 or on TL 3400. [STAFF COMMENT: Staff has added a condition of approval requiring the applicant to submit a survey of the access easement and relocate all portions of the road within the easement, and off of any adjacent BLM lands.] File No. 247 -17 -000833 -AD 2 Deschutes Countv Transportation Planner I have reviewed the transmittal materials for 247 -17 -000833 -AD for a marijuana production (growing) operation in the Exclusive Farm Use (EFU) zone at 23450 Walker Road, aka 17-13-00, Tax Lot 3400. Deschutes County Code (DCC) at 18.116.330(B)(8) only requires proof of legal direct access to the property or access from a private easement for a grow of more than 5,000 square feet of mature canopy. The proposal is for 20,000 square feet of mature canopy, so the access requirement does apply. The applicant should provide a copy of an approved driveway permit from the Road Department. If the applicant does not have one, then acquiring one should be made a condition of approval. The traffic study requirements of DCC 18.116.310 are not applicable for a marijuana production application, unless the application is also under going site plan review and must show compliance with DCC 18.124.080(J). As this land use not being reviewed against the criteria of DCC 18.124, no traffic study can be required. Board Resolution 2013-020 sets an SDC rate of $3,937 per p.m. peak hour trip. The County uses the most recent edition of the Institute of Traffic Engineers (ITE) trip generation manual to assess SDCs. The ITE manual does not contain a category for marijuana production. In consultation with the Road Department Director and Planning staff, the County has determined the best analog use is Warehouse (Land Use 150) based on the storage requirements and employees of this activity. The ITE indicates Warehouse generates 0.32 p.m. peak hour trips per 1,000 square feet. The applicant proposes 20,000 square feet of mature canopy spread across several buildings, but does not provide the total square footage of those buildings. The County's SDC is based on the buildings' total square footage related to cannabis production and support and not the square footage of the mature canopy. For discussion purposes only, 20,000 square feet of mature canopy would produce 6.4 p.m. peak hour trips (20 X 0.32). The resulting SDC is $25,197 (6.4 X $3,937). The actual SDC will be higher as it will be based on building square footage and not mature canopy size. Regardless of the final amount, the SDC is due prior to issuance of certificate of occupancy; if a certificate of occupancy is not applicable, then the SDC is due within 60 days of the land use decision becoming final. Deschutes County Sheriff's Office Our concern lies in the odor, sights, sounds and setbacks of the property in this type of request and how it affects the livability of our community members; in conjunction with the issue that marijuana is illegal on a federal level. In addition, we are finding the calls for service related to marijuana grow operations are increasing. Bureau of Land Management The Bureau of Land Management (BLM) Prineville District Office provides the below comments regarding a marijuana production proposal off Walker Road near the Juniper Woodlands Recreation Area application file number 247 -17 -000833-AD. Upon recent review of the project area BLM does have concern on a number of issues regarding this proposal. In response to question 8.c of the application, the applicant File No. 247 -17 -000833 -AD indicates that the access is via a private road across private property. A recent review of the property boundaries along Walker Road, as depicted in the Deschutes county property information website (haps://dial.deschutes.org/Real/interactiveMap/106922), indicates that the road may dip south off of the applicants parcel onto public lands. The applicant has not requested or received consent from the BLM to use this access route. BLM requests that a survey be completed to establish that the access road is not on public land. Second, the location of the project area is very close to the Juniper Woodlands Recreation Area boundary. BLM recommends that the applicant have a boundary survey of the parcel conducted to ensure no unintentional future trespass onto public lands occurs. Additionally, the BLM has concerns over the use of pesticides and herbicides and chemical residue migration onto public lands. It is requested that if chemicals are used in the operation, that protocols are required to ensure that chemical residue is contained and does not migrate onto public lands. If you have any questions on these information requests, please contact April Rabuck, Acting Assistant Field Manager Lands and Minerals at (541) 416-6853. [STAFF COMMENT: As noted above, staff has added a condition of approval to ensure that the access road is entirely within the easement, with no portion of the road on BLM lands.] Alfalfa Fire District The following is input from the Alfalfa Fire District, Address should be clearly visible from the primary access road. Access gate should be at least 20 feet wide to provide access to fire apparatus. Access roads and driveways should be all weather and able to support at least 60,000 GVW Exit doors should be clearly marked and unobstructed. Onsite firefighting water supply should be clearly marked and be accessible to firefighters at all times. Portable fire extinguishers should be located throughout the building with a travel distance of no more than 75 feet. Fire extinguisher locations should be clearly marked. Facility should have a fire safety plan including exit plan and employee accountability system. This plan should be practiced by all employees on a regular basis. Material Safety Data Sheets for all onsite hazardous materials should be keep on site and be accessible to fire department personnel at all times. • All hazardous material storage areas, tanks and containers should be clearly marked. • Firefighters should be able to coordinate with facility managers a building walk through for the purpose of training and emergency planning. File No. 247 -17 -000833 -AD Central Oregon Irrigation District COID FACILITIES COID has its D-1-8 delivery ditch on a portion of the subject's property ➢ It has a 20' canal right of way COID WATER RIGHTS Subject's property has 31.25 acres of COID water rights COID request a copy of the site plan Please contact COID concerning water rights COID GUIDELINE STATEMENT COID response to Community Development Notice for Proposed Marijuana Production: Central Oregon Irrigation District (COID) serves this property with 31.25 acres of irrigation water during the irrigation season of April 1st through October 31st at a rate of up to 6 gallons per minute per acre. This water cannot be used for irrigation during the winter months. An additional source (not COID) of water is necessary to irrigate between November 1st and March 31st. If the recreational marijuana production facility is a greenhouse or other structure proposed to be built on top of the COID water right, land - user must allow COID annual access to the structure to document beneficial use of the water right. Structures on top of a water right for any purpose other than growing plants is not allowed. Applicant should contact COID to determine status of water rights prior to construction of production facility. Plot Plan is required to assist COID in determining if the proposed structure will be located on the water right or if a water transfer application is needed to transfer water to it. The following agencies were provided notice but did not submit comments: Deschutes County Environmental Soils Division and Watermaster — District 11. G. PUBLIC COMMENTS: The Planning Division mailed notice of the administrative determination application to all property owners within 750 feet of the subject property. Additionally, the applicant submitted a land use sign affidavit indicating the sign was posted on the property on. A number of opposition comments were submitted in response to the mailed and posted notices, along with one support comment. These comments and concerns are summarized below. OPPOSITION 1. Odor impacts. 2. Noise impacts. 3. Improper use of well water for the production operation. 4. Legal sources of water. 5. Improper waste disposal. File No. 247 -17 -000833 -AD 6. County code should be interpreted to limit production to a single building for the single license allowed for the property. 7. Light pollution. 8. Improper access on BLM land. 9. Potential impacts to wetlands. 10. Excessive consumption of electricity. 11. Workers should be subject to a background check. 12. Need for inspections. 13. Negative impact on ground water and water within the COID canal from fertilizer use. 14. Increase in black market sales. 15. COID received federal grant money and should not be used to irrigate marijuana. 16. Discharge of industrial wastewater into the on-site septic system is prohibited. 17. Proposed water usage far exceeds household usage and will negatively impact water availability for surrounding residents, particularly from wells. 18. Negative impact on property values. 19. Negative impact on quality of life for surrounding residents, particularly children. 20. Production of marijuana is morally wrong. 21. Negative impact on community safety. 22. Will increase crime and drug use. 23. Increase in traffic and potential transportation safety issues. 24. Livestock may consume marijuana. 25. Cross contamination of marijuana with other nearby crops. [STAFF COMMENT: Issues 1 through 8 are addressed below. With respect to issue 9, the proposed building envelope will be located at least 700 feet from the mapped wetland onsite. Staff finds no impacts to wetlands will result from the proposal. Issues 10 through 25 are not associated with any applicable approval criteria. For this reason, staff does not address issues 9 through 25 in this decision.] SUPPORT 1. Deschutes County Code 9.12.080 prohibits any new restrictions to farming practices. 2. Current county code violates the reasonable time, place and manner provisions of state statute. H. REVIEW PERIOD: The application was submitted on October 11, 2017. The application was deemed incomplete and a letter summarizing the additional information needed to review the applications was mailed on November 9, 2017. The applicant submitted additional information in response to the incomplete letter on January 26, 2018, and the application was deemed complete on that day. The 150th day on which the County must take final action on this application is June 25, 2018. III. FINDINGS: TITLE 18 OF THE DESCHUTES COUNTY CODE, COUNTY ZONING. A. CHAPTER 18.16, EXCLUSIVE FARM ZONE File No. 247 -17 -000833 -AD 6 Section 18.16.020. Uses Permitted Outright. The following uses and their accessory uses are permitted outright.- S. utright. S. Marijuana production, subject to the provisions of DCC 18.116.330. FINDING: The applicant is proposing marijuana production on the subject property, a use permitted outright subject to compliance with the applicable provisions of DCC 18.116.330, addressed below. 2. Section 18.16.060. Dimensional Standards. E. Building height. No building or structure shall be erected or enlarged to exceed 30 feet in height, except as allowed under DCC 18.120.040. FINDING: The applicant proposes to use both an existing structure that is less than 30 feet in height, along with a new structure that will be approximately 14 feet in height. This criterion will be met. 3. Section 18.16.070. Yards. A. The front yard shall be a minimum of. 40 feet from a property line fronting on a local street, 60 feet from a property line fronting on a collector street, and 100 feet from a property line fronting on an arterial street. B. Each side yard shall be a minimum of 25 feet, except that for a nonfarm dwelling proposed on property with side yards adjacent to property currently employed in farm use, and receiving special assessment for farm use, the side yard shall be a minimum of 100 feet. C. Rear yards shall be a minimum of 25 feet, except that for a nonfarm dwelling proposed on property with a rear yard adjacent to property currently employed in farm use, and receiving special assessment for farm use, the rear yard shall be a minimum of 100 feet. FINDING: The property has frontage on Walker Road, classified as a local road requiring a 40 - foot front yard setback. Because the proposed structure is not a nonfarm dwelling, the required side and rear yard setbacks are 25 feet. The applicant's Site Plan Addendum dated January 18, 2018 shows the location of the existing structure to be used as part of the operation and a building envelope intended to represent the possible location of the proposed new building. The existing building observes a south front yard setback of 483 feet, an east side yard setback of 924 feet, a west side yard setback of 90 feet, and a north rear yard setback of 781 feet. The proposed building envelope will observe a south front yard setback of 200 feet2, an east side yard setback of approximately 900 feet, a west side yard setback of 200 feet, and a north rear yard setback of 880 feet. Both the existing building and the building envelope comply with the required setbacks. 2 Although the building envelope illustrates a front yard setback of 120 feet and a west side yard setback of zero feet, the acoustical barrier limit sets effective front and west side yard setbacks of 200 feet. File No. 247 -17 -000833 -AD 7 D. In addition to the setbacks set forth herein, any greater setbacks required by applicable building or structural codes adopted by the State of Oregon and/or the County under DCC 15.04 shall be met. FINDING: Any greater setbacks required by applicable building or structural codes will be addressed during building permit review. 4. Section 18.16.080. Stream Setbacks. To permit better light, air, vision, stream pollution control, protection of fish and wildlife areas and preservation of natural scenic amenities and vistas along streams and lakes, the following setbacks shall apply. A. All sewage disposal installations, such as septic tanks and septic drainfields, shall be set back from the ordinary high water mark along all streams or lakes a minimum of 100 feet, measured at right angles to the ordinary high water mark. In those cases where practical difficulties preclude the location of the facilities at a distance of 100 feet and the County Sanitarian finds that a closer location will not endanger health, the Planning Director or Hearings Body may permit the location of these facilities closer to the stream or lake, but in no case closer than 25 feet. B. All structures, buildings or similar permanent fixtures shall be set back from the ordinary high water mark along all streams or lakes a minimum of 100 feet measured at right angles to the ordinary high watermark. FINDING: Although a COID canal traverses the property, no streams or lakes exist on-site. Therefore, these criteria do not apply. B. CHAPTER 18.116, SUPPLEMENTARY PROVISIONS Section 18.116.330. Marijuana Production, Processing, and Retailing. A. Applicability. Section 18.116.330 applies to: 1. Marijuana Production in the EFU, MUA-10, and RI zones. FINDING: The applicant proposes a marijuana production (grow) facility in the EFU Zone. This section applies. 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 MUA-10 zones, the subject legal lot of record shall have a minimum lot area of five (5) acres. FINDING: The subject property is 40 acres in size. This standard is met. File No. 247 -17 -000833 -AD 2. Indoor Production and Processing. b. In the EFU zone, marijuana production and processing shall only be located in buildings, including greenhouses, hoop houses, and similar structures. FINDING: A comment was received from Laurie Craghead' arguing that only one building is allowed for each production license. Specifically, Ms. Craghead provides the following, The county code allows only one marijuana production license per property but does allow production within a building. Thus, the code should be interpreted that only one building is allowed for each production license. Thus, each separate container onsite is a separate production site. Since each one is a separate production site, each one needs to be licensed by the OLCC separately. The county code, however, allows only one licensed marijuana production site per parcel. Thus, no more than one container can be used for a licensed marijuana production. Nothing in the statutes or the OARs precludes such an interpretation of the county code. Staff finds that the specific language in this criterion contemplates the potential use of multiple buildings and similar structures for production. Additionally, the Board of County Commissioners approved two buildings for marijuana production use in the Eakin application (247-17-000520-A) in which only one OLCC licensed was proposed to be used. For these reasons, staff finds the applicant's use of an existing building with a proposed new building for the production operation meets this criterion. No outdoor production is proposed. 3. 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. L 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. 3 Reference Laurie Craghead email dated March 9, 2018. File No. 247 -17 -000833 -AD FINDING: Based on the property's 40 -acre size, the applicant can be approved for up to 20,000 square feet of mature canopy area. The applicant proposes a maximum of 20,000 square feet of production area. This criterion will be met. 4. Maximum Building Floor Area. In the MUA-10 zone, the maximum building floor area used for all activities associated with marijuana production and processing on the subject property shall be: 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: 5,000 square feet. FINDING: The subject property is zoned EFU. Therefore, this standard does not apply. 5. 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) registered medical marijuana grow site shall be allowed per legal parcel or lot. FINDING: The applicant states the intention to complete and finalize the OLCC license upon approval of the subject application. A condition of approval will ensure that only one OLCC or OHA site is registered to the subject property. 6. Setbacks. The following setbacks shall apply to all marijuana production and processing areas and buildings: a. Minimum Yard Setback/Distance from Lot Lines: 100 feet. FINDING: The existing structure will exceed the 100 -foot setback from all property lines except for the west property line. As noted above, the existing structure observes a 90 -foot setback from the west property line. Consequently, the applicant requests an exception to the setback standard as discussed under subsection (c) below. b. Setback from an off-site dwelling: 300 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. FINDING: Staff reviewed permit records for all adjacent properties and found the closest dwelling to the marijuana production building envelope is located approximately 325 feet to the west on tax lot 1500, Assessor map 17-13-27C (23250 Walker Road). This standard will be met. C. Exception: Any reduction to these setback requirements may be granted by the Planning Director or Hearings Body provided the applicant demonstrates the reduced setbacks afford equal or greater mitigation of visual, odor, noise, lighting, privacy, and access impacts. FINDING: The existing building observes a 90 -foot setback from the west property line. Therefore, the applicant is requesting a ten -foot exception to the 100 -foot setback standard under File No. 247 -17 -000833 -AD 10 subsection (a). Each of the required issue areas associated with the exception criteria is addressed below. Visual The applicant proposes to use an existing structure for a portion of the marijuana production operation. This structure is located 90 feet from the west property line. The property to the west (23250 Walker Road) is also owned by the applicant. Given the small, ten -foot exception requested, the proposed trees4 between the existing building and the west property line, and the fact that the applicant also owns the property to the west, staff finds the use of the existing building affords equal mitigation of visual impacts to the adjacent property to the west. Odor As noted in the findings under DCC 18.116.330(B)(10) below, the existing building will include fan/filter combinations that will meet the approval criteria. Additionally, the existing building is a pre -fabricated structure that is sealed such that no air is exhausted to the outside. For these reasons, staff finds the existing building will afford equal mitigation of odor impacts to the adjacent property to the west. Noise As noted in the findings under DCC 18.116.330(B)(10) below, the engineer's letter indicates that no sound dampening is necessary to meet the 30 dB limit at the west property line. For this reason, staff finds the existing building will afford equal mitigation of noise impacts to the adjacent property to the west. Li htin Per the applicant, the existing building does not have any windows, or similar, which will allow light to escape the structure. For this reason, staff finds the existing building will afford equal mitigation of lighting impacts to the adjacent property to the west. Privacy Existing and proposed trees provide additional buffering from the existing building to west property line. The requested exception is for only ten feet and the adjacent property to the west is also owned by the applicant. For these reasons, staff finds the existing building will afford equal mitigation of privacy impacts to the adjacent property to the west. Access The production operation will utilize a proposed access easement across the property to the west, which is also owned by the applicant. Staff finds the proposed access easement along the south property line will eliminate any access impacts to the adjacent property to the west. For the reasons detailed above, staff finds use of the existing building will afford equal mitigation of visual, odor, noise, lighting, privacy and access impacts. As a result, staff grants an exception to the 100 -foot setback to the west property line. 4 Reference applicant's email dated April 27, 2018 and the Site Plan Addendum. File No. 247 -17 -000833 -AD 11 7. Separation Distances. Minimum separation distances shall apply as follows: a. The use shall be located a minimum of 1000 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. b. For purposes of DCC 18.116.330(B)(7), all distances shall be measured from the lot line of the affected properties listed in DCC 18.116.330(B)(7)(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(B)(7) shall not result in the marijuana producer or marijuana processor being in violation of DCC 18.116.330(B)(7) if the use is: i. Pending a local land use decision; ii. Licensed or registered by the State of Oregon; or iii. Lawfully established. FINDING: Four (4) tax lots are wholly or partially within 1,000 feet of the subject property. Staff reviewed land use records for these properties and found none of these properties are engaged in or approved for a use described in this section, or are subject to subsection (c). This criterion will be met. 8. 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: File No. 247 -17 -000833 -AD 12 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. FINDING: The proposed production operation will include mature canopy of up to 20,000 square feet. For this reason, these criteria apply. Comments were received by the Deschutes County Road Department and the BLM indicating a concern regarding the location of the existing road that will provide access. The application materials include a shared access consent agreement signed by the parties. The agreement includes a description of the proposed marijuana production operation and a legal description of the easement. Staff has added conditions of approval to ensure adequate and legal access. The applicant shall record the shared access consent agreement with the County Clerk prior to initiation of use or issuance of any building permit, whichever comes first. Prior to initiation of use or issuance of any building permit, whichever comes first, the applicant shall survey the proposed easement, and for any portion of the road that is not within the easement, to relocate the road within the easement. With the imposition of these conditions of approval, this criterion will be met. 9. 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. FINDING: Neither the existing building nor the proposed building have any windows, or similar, which would allow light to escape. These criteria will be met. C. Light cast by exterior light fixtures other than marijuana grow lights shall comply with DCC 15. 10, Outdoor Lighting Control. FINDING: The applicant agrees to ensure that all exterior light fixtures will comply with the Outdoor Lighting Control ordinance. A condition of approval has been added to ensure compliance. 10. Odor. As used in DCC 1& 116.330(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. File No. 247 -17 -000833 -AD 13 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. FINDING: The applicant submitted a revised engineer's letter dated April 20, 2018 prepared by Rob James, a mechanical engineer registered in the state of Oregon (Certificate Number 65108 PE), to address both odor and noise for the existing and proposed buildings. Existing Building The revised engineer's report provides the following details for the odor control system within the existing building. The existing building contains 2 grow rooms, a veg/clone room and some ancillary non - grow spaces. 1. The 2 grow rooms each have a volume of 15,880 CF [cubic feet], which will require a carbon -filtered air flow of 5,294 CFM [cubic feet per minute]. Each grow room will have 3 air handlers that each move 1,471 CFM through carbon filters, plus one Can -Fan 12" HO (925 CFM @ 0.5') with an attached Can -Filter 150, 12" flange. The total carbon -filtered air flow will be 5,338 CFM, thus meeting the code requirement. 2. The veg/clone room has a volume of 6,815 CF, which will require a carbon -filtered air flow of 2,272 CFM. This room will have 2 air handlers that each move 1,471. CFM through carbon filters. The total carbon -filtered air flow will be 2,942 CFM, thus meeting the code requirement. 3. During normal operations of the facility the Opticlimate System is designed to condition and recirculate the air within the building. No air is exhausted from the building as there is not an Economizer Mode on the HVAC System. 4. The prefabricated structures are sealed operationally, not to pose any potential for odor to neighboring properties. Based on the above, staff finds the proposed odor control system for the existing building will comply with the approval criteria. Staff has included a condition of approval to ensure proper maintenance and use. File No. 247 -17 -000833 -AD 14 Proposed Building The revised engineer's report provides the following details for the odor control system within the proposed new building. The new building consists of 28 modules of flower and vegetation rooms. Each module has a volume of 7,500 CF, which will require a carbon -filtered air flow of 2,500 CFM. Each module will have three Can -Fan 12" HO (925 CFM @ 0.5') with an attached Can -Filter 150, 12" flange. The total carbon filtered air flow will be 2,775 CFM, thus meeting the code requirement. Based on the above, staff finds the proposed odor control system for the new building will comply with the approval criteria. Staff has included a condition of approval to ensure proper maintenance and use. 11. 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 exempt from protections of DCC 9.12 and ORS 30.395, Right to Farm. Intermittent noise for accepted farming practices is permitted. FINDING: The revised engineer's report provides the following details for the noise control system within the existing building and proposed new building. The HVAC configuration associated with the Lectrus pre -fabricated structures was designed by Opticlimate. The interior air handlers were provided by Briteside Holdings, and installed by Lectrus Corporation. The wall mounted HVAC units were purchased and installed by Lectrus. Final configuration of each unit will include: • The new building will have 22 wall -mounted HVAC units on each side that are rated at 73 dB noise level at the units. There will be a total of 44 HVAC Units for the entire building. • The existing building will have 2 condensing units on the west side, 6 condensing units on the east side, and 1 Bard unit on the north side. Regarding noise control, (DCC 18.116.330(B)(11)(a) the following factors assist in mitigating the sustained noise from the mechanical equipment used for HVAC, odor control, fans and similar functions to not exceed 30 dB(A) measured at any property line between L0:00 p.m. and 7.00 a.m. the following day. DCC 18.116.330(B)(6)(a) Marijuana production facilities shall have a minimum setback of 100 ft from the nearest property line. The new building is a minimum 200' from the south property line, 880' from the north property line, 924' from the east property line, and 200' from the west property line. The existing building is approximately 483' from the south property line, 781' from the north property line, 924' from the east property line, and 90' from the west property line. File No. 247 -17 -000833 -AD 15 2. Security fencing and plantings around the perimeter of the property line will be installed that will further dampen sound transmission. 3. Sound pressure is reduced by 6 dba each time the distance from the noise source is doubled, per the inverse square law. 4. For the new building: On the south and west sides, the outdoor units will need a 6'-7' high concrete sound wall between them and the their respective property lines, with a 200' minimum distance to keep the sound below 30 dBA. On the north and east sides, the outdoor units need no special treatment because they are far enough away from the property line to keep the sound below 30 dBA. 5. For the existing building: No special sound treatment is required to keep sound levels below 30 dBA at any property line. 6. The calculated sound pressure levels from the mechanical equipment at property line are: West property line: 29.9 dBA South property line: 29.6 dBA North property line: 27.2 dBA East property line: 23.7 dBA Staff has added a condition of approval requiring the applicant to construct a six- to seven -foot - tall concrete sound wall between the proposed new building and the west and south property lines. The proposed new building shall be sited within the building envelope and no closer than 200 feet from the west and south property lines. With the imposition of these conditions of approval, staff finds this criterion will be met. 12. 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. 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. FINDING: The subject property is not in a Landscape Management or Wildlife Area Combining Zone. Per the applicant's response to the Incomplete Letter, seven -foot -tall black chain-link fencing with one -inch barbed wire along the top will be installed. The applicant's response does not specify the color of the barbed wire. Staff has added a condition of approval requiring the barbed wire to also be painted black. File No. 247 -17 -000833 -AD 16 The applicant does not propose to remove any vegetation on-site. A condition of approval has been added to ensure compliance with subsection (d) above. These criteria will be met. 13. 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. FINDING: The applicant proposes multiple water sources to serve the production operation. Three (3) mitigation credits from Legacy Ranches LLC — reference Oregon Water Resources Department Assignment Record submitted with the applicant's response to the Incomplete Letter Forty-three (43) acres of irrigation water from COID for use from April 1 st through October 31St (irrigation season) — reference COID's letter submitted with the original application materials Bend Water Hauling5 — reference the Bend Water Hauling `will -serve' letter submitted with the original application materials Staff finds this criterion will be met. 14. 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. FINDING: The applicant is not proposing processing of cannabinoid extracts. Therefore, this standard does not apply. 15. Utility Verification. A 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. FINDING: The record includes a letter from CEC dated June 9, 2017 indicating CEC has reviewed the load information (4,000 amp three phase service) associated with the cannabis production facility and that system upgrades will be necessary. The letter goes on to state that CEC is willing and able to serve the proposed marijuana production use at the subject property. No other utilities have been proposed to serve the operation. This criterion is met. 16. Security Cameras. If security cameras are used, they shall be directed to record only the subject property and public rights-of-way, 5 It is staff's understanding that Bend Water Hauling sources their water from Avion Water Company and City of Redmond, quasi -municipal and municipal water sources. File No. 247 -17 -000833 -AD 17 except as required to comply with requirements of the OLCC or the OHA. FINDING: The applicant states security cameras will be used. Compliance with this standard shall be a condition of approval. 17. 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). FINDING: The applicant proposes secure waste receptacles within both the existing and proposed buildings. Compliance with this standard shall be a condition of approval. 18. Residency. In the MUA-10 zone, a minimum of one of the following shall reside in a dwelling unit on the subject property: a. An owner of the subject property; b. A holder of an OLCC license for marijuana production, provided that the license applies to the subject property; or C. A person registered with the OHA as a person designated to produce marijuana by a registry identification cardholder, provided that the registration applies to the subject property. FINDING: The subject property is zoned EFU, therefore this standard does not apply. 19. Nonconformance. All medical marijuana grow sites lawfully established prior to June 8, 2016 by the Oregon Health Authority shall comply with the provisions of DCC 18.116.330(6)(9) by September 8, 2016 and with the provisions of DCC 18.116.330(6)(10-12, 16, 17) by December 8, 2016. FINDING: The subject property does not include a medical marijuana grow facility. This criterion does not apply. 20. 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; 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. b. In the MUA-10 Zone, the following uses are prohibited. L Commercial activities in conjunction with farm use when carried on in conjunction with a marijuana crop. C. In the EFU, MUA-10, and Rural Industrial zones, the following uses are prohibited on the same property as marijuana production: L Guest Lodge. File No. 247 -17 -000833 -AD 18 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. FINDING: The applicant is not proposing any of the prohibited uses listed above. As a condition of approval, the uses listed in DCC 18.116.330(20) shall be prohibited on the subject property so long as marijuana production is conducted on the site. D. 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(C)(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 renewals) 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. Marijuana Control Plan to be established and maintained by the Community Development Department. e. Conditions of Approval Agreement to be established and maintained by the Community Development Department. f. This information shall be public record subject to ORS 192.502(17). FINDING: Compliance with the annual reporting requirements of this section shall be a condition of approval. File No. 247 -17 -000833 -AD 19 IV. SYSTEM DEVELOPMENT CHARGE (SDC) Board Resolution 2013-020 sets an SDC rate of $3,937 per p.m. peak hour trip. The County uses the most recent edition of the Institute of Traffic Engineers (ITE) trip generation manual to assess SDCs. The ITE manual does not contain a category for marijuana production. In consultation with the Road Department Director and Planning staff, the County has determined the best analog use is Warehouse (Land Use 150) based on the storage requirements and employees of this activity. The ITE indicates Warehouse generates 0.32 p.m. peak hour trips per 1,000 square feet. The applicant proposes 20,000 square feet of mature canopy spread across several buildings, but does not provide the total square footage of those buildings. The County's SDC is based on the buildings' total square footage related to cannabis production and support and not the square footage of the mature canopy. For discussion purposes only, 20,000 square feet of mature canopy would produce 6.4 p.m. peak hour trips (20 X 0.32). The resulting SDC is $25,197 (6.4 X $3,937). The actual SDC will be higher as it will be based on building square footage and not mature canopy size. Regardless of the final amount, the SDC is due prior to issuance of certificate of occupancy; if a certificate of occupancy is not applicable, then the SDC is due within 60 days of the land use decision becoming final. V. CONCLUSIONS: Based on the application materials submitted by the applicant and the above analysis, staff concludes this application for a marijuana production facility in the EFU Zone can conform to the standards for approval. Other permits may be required. The applicant is responsible for obtaining any necessary permits and meeting the requirements of the Deschutes County Building Safety Division, the Deschutes County Environmental Soils Division and the Deschutes County Road Department, as well as obtaining any required state and federal permits. VI. DECISION: APPROVAL, subject to the following conditions of approval. VII. CONDITIONS OF APPROVAL: A. Approval is based upon the submitted application materials and record developed for this land use action. Any substantial change to the approved use will require a new application. B. All necessary Building Division and Environmental Soils Division permits shall be secured by the applicant prior to initiating the use. C. Inside building lighting, including greenhouses, hoop houses, and similar structures, used for production shall not be visible outside the building from 7:00 p.m. to 7:00 a.m. on the following day. D. 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. E. Light cast by exterior light fixtures associated with the production buildings, other than marijuana grow lights, shall comply with DCC 15.10, Outdoor Lighting Control. File No. 247 -17 -000833 -AD 20 F. The proposed odor control systems for the production buildings must at all times prevent unreasonable interference of neighbors' use and enjoyment of their property. G. The proposed odor control systems for the production buildings shall be maintained in working order and shall be in use. H. Sustained noise from mechanical equipment associated with the production buildings and 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. 1. The existing tree and shrub cover screening the production buildings 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. I Security cameras shall be directed to record only the subject property and shall comply with the requirements of the OLCC. K. Marijuana waste shall be stored in a secure waste receptacle in the possession of and under the control of the OHA licensee. L. The uses listed under DCC 18.116.330(8)(20) are prohibited on-site if marijuana production exists on-site. M. The applicant or property owner shall comply with the annual reporting requirements of DCC 18.116.330(D). N. Prior to initiation of production use within the existing building or issuance of any building permit for the proposed new production building, whichever comes first, the applicant shall record the shared access consent agreement with the County Clerk. The applicant shall submit a copy of the recorded agreement to the Planning Division. O. Prior to initiation of production use within the existing building or issuance of any building permit for the proposed new production building, whichever comes first, the applicant shall survey the proposed easement and, for any portion of the road that is not within the easement, relocate the road within the easement. The applicant shall schedule a site visit with Planning staff to demonstrate compliance with this condition. P. Prior to initiation of production use within the new building, the applicant shall install a six- to seven -foot -tall concrete sound wall between the proposed new production building and the west and south property lines. The proposed new production building shall be sited within the Building Envelope identified on the applicant's Site Plan Addendum dated January 18, 2018, and sited no closer than 200 feet from the west and south property lines. Q. Prior to initiation of production use within the existing building, the applicant shall plant at least six (6) trees between the existing building and the west property line. Said trees shall be at least eight (8) feet tall at time of planting and shall be maintained for as long as the production use within the existing building continues on-site. The applicant shall replace any dead trees installed as part of this condition. File No. 247 -17 -000833 -AD 21 R. Any barbed wire installed as part of the proposed fencing shall be painted black. VII. DURATION OF APPROVAL: The applicant shall initiate the use within two (2) years of the date this decision becomes final, or obtain approval of an extension under Title 22 of the County Code, or this approval shall be void. This decision becomes final twelve (12) days after the date of mailing, unless appealed by a party of interest. DESCHUTES COUNTY PLANNING DIVISION AVWVZ 1 iK-Q- Written by: Anthony Raguine, Senior Planner Reviewed by: Peter Gutowsky, Planning Manager File No. 247 -17 -000833 -AD 22 ij BRITESIDE FACILITY SITE PLAN ADDENDUM 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 May 16, 2018 DATE: May 8, 2018 FROM: William Groves, Community Development, 541-388-6518 TITLE OF AGENDA ITEM: Potential Marijuana Production Appeal, 64575 Mock Rd, Order 2018-034 RECOMMENDATION & ACTION REQUESTED: Consider whether to Hear Potential Appeal of Administrative Decision (File No. 247 -18- 000053 -AD) ATTENDANCE: CDD, Will Groves SUMMARY: On January 18, 2018 an application was filed for an Administrative Determination (AD) to modify a prior approval (247 -16 -000709 -AD) to relocate the new greenhouse Building Envelope area, structure type, and odor control method. The proposal does not modify the processing approval (247 -16 -000710 -SP / 728 -AD) or production within the previously approved existing building and greenhouse. The Planning Division issued an administrative approval on May 8, 2018. The decision becomes final on May 21s' if not appealed. Section 22.28.050 of the Deschutes County Code authorizes the BOCC to initiate review of any administrative action within 12 days of the date of mailing of the final written decision. STAFF MEMO Date: May 8, 2018 To: Board of County Commissioners From: Will Groves, Senior Planner Re: To Hear Potential Appeal of Administrative Decision (File No. 247 -18 -000053 -AD) The Board of County Commissioners (Board) will conduct a work session on May 16, 2018 at 1:30 PM and will consider hearing a potential appeal of an administrative decision (File No. 247 -18 -000053 - AD) approving a marijuana production application. I. Application On January 18, 2018 an application was filed for an Administrative Determination (AD) to modify a prior approval (247 -16 -000709 -AD) to relocate the new greenhouse Building Envelope area, structure type, and odor control method. The request is intended to improve building design and location, and allow for a state-of-the-art odor control method. The proposal does not modify the processing approval (247 -16 -000710 -SP / 728 -AD) or production within the previously approved existing building and greenhouse. II. Decision On February 17, 2018, the application was deemed complete and accepted for review after the applicant submitted additional information. The Planning Division issued an administrative decision for modified marijuana production without a public hearing on May 8, 2018, determining the applicant met the applicable criteria (Attachment 1). Notice of the decision was mailed to neighboring property owners. The decision becomes final on May 21 st if not appealed. III. Appeal Although no appeal has been filed yet, staff considers the potential of an appeal. IV. 150 -day Issuance of a Final Local Decision 11 7 NW Lafayette Avenue, Bend, Oregon 97703 ( P.O. Box 6005, Bend, OR 97708-6005 %2(54-1) 388-6575 @cdd@deschutes .org www.deschutes.org/cd The 1501h and final day for the County to issue a final local land use decision is August 3, 2018. V. Board Options Section 22.28.050 of the Deschutes County Code authorizes the Board of County Commissioners to initiate review of any administrative action or a Hearings Body's decision within 12 days of the date of mailing of the final written decision of the Planning Director or lower Hearings Body. The 12th day following the mailing date of this decision falls on a Saturday, therefore, in accordance with DCC 22.08.070 an appeal must be filed no later than 5:00 PM on Monday, May 21St Staff has included a site plan of the operation as Attachment 2. Attachment 3 is a Board Order to initiate a de novo review of this file, should a timely appeal be filed. Attachments: 1. Administrative Decision for File No. 247 -18 -000053 -AD 2. Site Plan 3. Board Order to Initiate Review Page 2 of 2 APPENDIX A Requirements of an Acceptable Driving Record A -- ,.v ('—,;..r;..., Violation Class Year 1 Point Value Year 2 Point Value Year 3 Point Value Year 4 Point Value Year 5 Point Value Year 6 Point Value Year 7+ Point Value A (VA) 10 9 8 7 6 5 0 B (VB) 7 6 5 4 3 2 0 C (VC) 5 4 3 2 1 0 0 D (VD) 4 3 2 1 0 0 0 Misdemeanor Class Year 1 Point Value Year 2 Point Value Year 3 Point Value Year 4 Point Value Year 5 Point Value Year 6 Point Value Year 7+ Point Value A (MA) 35 30 25 20 15 10 5 B (MB) 30 25 20 15 12 6 0 C (MC) 25 20 15 12 10 0 0 Felony Class Year 1-5 Point Value Years 6 - 8 Point Value Year 8 – 10 Point Value Year 10+ Point Value A (FA) Unacceptable 20 10 5 B (FB) Unacceptable 18 9 0 C (FC) Unacceptable 16 8 0 Suspensions and Revocations Driving is prohibited under a current suspension or revocation of driving privileges. Two or more suspensions within a five year period will be reviewed by Risk Management and supervising department. See Policy No. RM -1 for more information. Accidents Two or more accidents within a five year period will be reviewed by Risk Management, supervising department and/or an Accident Review Committee. See Policy No. RM -1 for more information. RATING: 0-15 = ACCEPTABLE 16-20 = PROBATION 21+ = UNACCEPTABLE Risk Management representatives are available to assist departments in evaluating driving records. Policy # RM -1, Driving on County BusinessNehicle Operator Standards Page 7 FILE NUMBER: APPLICANT: OWNER: PLANNER: Community Development Department Planning Division Building Safety Division Environmental Soils Division P,O, Box 6005 117 NW Lafayette Avenue Bend, Oregon 97708-6005 Phone: (541) 388-6575 Fax: (541) 385-1764 http://w%.w�k. d e s ch ute s, o rg/cd FINDINGS & DECISION 247 -18 -000053 -AD Oregrown Industries, Inc. K & P Enterprises 2 LLC Blackmore Planning and Development Services, LLC REQUEST: Modification of the approved Administrative Determination 247-16-000709 - AD to relocate the new greenhouse Building Envelope area, structure type, and odor control method. The request is intended to improve building design and location, and allow for a state-of-the-art odor control method. The proposal does not modify the processing approval (247 -16 -000710 -SP / 728 -AD) or production within the previously approved existing building and greenhouse. LOCATION: The subject property is located at 64575 Mock Road, Bend and is identified on Deschutes County Assessor's Map No. 16-11-35 as tax lot 2000. STAFF CONTACT: Will Groves, Senior Planner, (541) 388-6518, willg@deschutes.org I. APPLICABLE CRITERIA Deschutes County Code (DCC): Title 18, Deschutes County Zoning Ordinance Chapter 18.16, Exclusive Farm Use Zones Chapter 18.116, Supplementary Provisions Title 22, Deschutes County Development Procedures Ordinance Quality Services 13er vwm ed with Pride II. BASIC FINDINGS A. Location: The subject property is located at 64575 Mock Road, Bend and is identified on Deschutes County Assessor's Map No. 16-11-35 as tax lot 2000. B. Lot of Record: The subject property is Parcel 1 or Partition Plat PP2004-8; through past Deschutes County Land Use Decisions has been determined to be a Lot of Record. C. Zoning: The property is zoned Exclusive Farm Use - TRB subzone (EFU-TRB) and Surface Mining Impact Area Combining Zone (SMIA). D. Proposal: The applicant requests Modification of the approved Administrative Determination 247-16-000709 - AD to relocate the new greenhouse Building Envelope area, structure type, and odor control method. The request is intended to improve building design and location, and allow for a state-of-the-art odor control method. The proposal does not modify the processing approval (247 -16 -000710 -SP 1 728 -AD) or production within the previously approved existing building and greenhouse. Staff notes that this application is not a Modification of Approval under DCC 22.36.040 and is not subject to those criteria. Staff also notes that this proposal supersedes the prior approval with regard to new greenhouse location and odor control method. E. Site Description: The subject property is approximately 83.79 acres in size, with an irrigation ditch running through the northwest quadrant. The property is developed with a number of agricultural buildings, a green house, accessory buildings, and sheds. The majority of the existing 11,822 square foot building and existing greenhouse are used for marijuana production, authorized by the Deschutes County approval issued on February 16, 2017. A 900 square foot area of the 11,822 square foot building and the 1,000 square foot building in the southeast quadrant have been approved for marijuana processing, by the February 16, 2017 Deschutes County decision. The adjacent machine shed supports the site activities. The other buildings and structures on the site have previously been used in support of goat farming activities, and are currently unused. 247 -18 -000053 -AD Page 2 of 22 F. Public Agency Comments: The Planning Division mailed a Notice of Application and received comments from the following agencies: Bend Fire Department: FIRE APPARATUS ACCESS ROADS: • Approved fire apparatus access roads shall be provided for every facility, building or portion of a building hereafter constructed or moved into or within the jurisdiction. The fire apparatus access road shall comply with the requirements of this section and shall extend to within 150 feet of all portions of the facility and al/ portions of the exterior walls of the first story of the building as measured by an approved route around the exterior of the building or facility. 2014 OFC 503.1.1 • Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus (60,000 pounds GVW) and shall be surfaced (asphalt, concrete or other approved driving surface) as to provide all weather driving capabilities. Inside and outside turning radius shall be approved by the fire department. All dead-end turnarounds shall be of an approved design. Bridges and elevated surfaces shall be constructed in accordance with AASHTO HB -17. The maximum grade of fire apparatus access roads shall not exceed 10 percent. Fire apparatus access road gates with electric gate operators shall be listed in accordance with UL325. Gates intended for automatic operation shall be designed, constructed and installed to comply with the requirements of ASTM F 2200. A Knox® Key Switch shall be installed at all electronic gates. 2014 OFC D102.1, 503.2.4, FIRE PROTECTION WATER SUPPLIES: 247 -18 -000053 -AD Page 3 of 22 • An approved water supply capable of supplying the required fire flow for fire protection shall be provided to premises upon which facilities, buildings or portions of buildings are hereafter constructed or moved into or within the jurisdiction. Tumalo Irrigation District: This letter is to confirm that there are 10.00 total acres of water rights appurtenant to the above referenced property, delivered by Tumalo Irrigation District. Please see the enclosed aerial map that shows the footprint of where these water rights are mapped. The water right footprint cannot cover any building or other areas that you cannot water, such as a driveway or marijuana processing facility. The only buildings that can be covered with the irrigation water right footprints are buildings that will be used for growing crops. Land - user must allow TID annual access to the structure to document beneficial use of the water right. Structures on top of a water right for any purpose other than growing plants is not allowed. If a water transfer is needed to correct this, the cost is $1,406.00, and the new location must be beneficially used in the year in which the transfer takes place. In the State of Oregon the irrigation of marijuana is considered a beneficial use for the Districts water rights. Water rights may only be used during the official irrigation season as documented in certificates 74L46 and 74'1.47, issued by the State of Oregon. Tumalo Irrigation District s water right certificates, 74146 artd74'1-47, allow use from April L to Nov L. Outside of this time frame, Tumalo Irrigation District water rights cannot be used for irrigation. Those wishing to grow outside of the specified irrigation season must find alternate sources, such as water hauling or a well water right issued by the State. This property is encumbered with an easement operated by Tumalo Irrigation District, for the Tumalo Irrigation Districts Tellin Lateral Canal. This easement includes the width of the canal and 50' in all directions, from the marginal edge of the canal. For more information please call our District office. Deschutes County Building Division: The Deschutes County Building Safety Divisions code required Access, Egress, Setback, Fire & Life Safety Fire Fighting Water Supplies, etc. will be specifically addressed during the plan review process for any proposed structures and occupancies. All Building Code required items will be addressed, when a specific structure, occupancy, and type of construction is proposed and submitted for plan review. Deschutes County Senior Transportation Planner Peter Russell: I have reviewed the transmittal materials for 247 -18 -000053 -AD to modify a marijuana production (growing) operation approved under 247-16-000709-AD/710-SP/728AD in the Exclusive Farm Use (EFU) zone at 64575 Mock Road, aka 16-11-35, Tax Lot 2000. The modification would relocate the building envelope for a new greenhouse(s) and well as change the structure type and odor control method. Deschutes County Code (DCC) at 18.116.330(B)(8) only requires proof of legal direct access to the property or access from a private easement for a grow of more than 5,000 square 247 -18 -000053 -AD Page 4 of 22 feet of mature canopy. The access was dealt with in the previously approved proposal. Staff understands the modification only changes the location of the envelope for future buildings for marijuana production, but does not change the total square footage of those buildings. The applicant should submit additional information on this topic, either confirming staffs understanding of the issue or providing the new total square footage of the buildings used in production if there is a change. If there is a change in the square footage related to marijuana production, the SDC amount described below will need to be modified. Board Resolution 2013-020 sets an SDC rate of $3,937 per p.m. peak hour trip. The Institute of Traffic Engineers (ITE) trip generation manual indicates Warehouse generates 0.32 p.m. peak hour trips per 1,000 square feet. The Board in a policy decision in early 2017 agreed to use Warehouse for marijuana production. The previously approved application (247-16-000709-AD/710-SP/728-AD) had an SDC of $37,778. County records indicate this amount has not been paid and is past due. Payment of the SDC (the full amount or a signed and recorded agreement for a 10 year payment plan as permitted under Board Resolution 2013-020, Section 5 and DCC 15.12.060) should be made a condition of approval of this application. As this land use does not alter the square footage used in marijuana production, there is no SDC for this application. The overdue SDC is due prior to issuance of certificate of occupancy; if a certificate of occupancy is not applicable, then the SDC is due within 60 days of the land use decision becoming final. The following agencies either had no comment or did not respond to the notice: Central Electric Co-op, Oregon Liquor Control Commission, and Watermaster - District 11. G. Public Comments: The Planning Division mailed a written notice of this action to property owners within 750 feet of the subject property on January 29, 2018. Only requests for additional information without comment were received. H. Review Period: This application was submitted on January 18, 2018. The application was accepted and deemed complete on February 17, 2018. The applicant tolled the clock for 17 days. Therefore, the 150th day on which the County must take final action on this application is August 3, 2018. The applicant has also complied with the posted notice requirements of Section 22.23.030(B) of Title 22. The applicant has submitted photo evidence that the applicant posted notice of the land use action on April 3, 2018. J. LAND USE HISTORY: The subject property was created as Parcel 1 of Minor Land Partition No. 2004-8. Prior to farm use and/or medical marijuana production and processing use of the property, site plan review SP -93-127 approved the expansion of surface mining onto the property. In 2002, Zone Change file no. ZC-02-4 was approved, which changed the zoning from surface mining to Exclusive Farm Use 247 -18 -000053 -AD Page 5 of 22 (EFU). Since that time, the property has been used as a goat farm, a medical marijuana production and processing facility, and on February 16, 2017 the County approved recreational marijuana production and processing uses on the site, Files 247 -16 -000709 -AD / 710 -SP / 728 -AD. The current proposal is not for a new use, but rather only to relocate the Building Envelope area and improve the building design, along with an enhancement to the odor control plan for the relocated Building Envelope area. The request is intended to enhance building design and location, and allow for a state-of-the-art odor control method. The proposal does not modify the processing approval (247-16-000710 - SP / 728 - AD) on the site or production within the existing building and greenhouse. 111. FINDINGS A. Chapter 18.16, Exclusive Farm Use Zones Section 18 16 020. Use Permitted Outright. The following uses and their accessory uses are permitted outright. S. Marijuana production, subject to the provisions of DCC 18.116.330. FINDING: The proposal modifies the location of the new greenhouse Building Envelope and odor control method, but does not modify the approved marijuana production use of the property, which is subject to the provisions of DCC 18.116.330. A complete review of the applicable provisions of DCC 18.116.330 is included below. 2. 18.16.060. Dimensional Standards. E. Building height. No building or structure shall be erected or enlarged to exceed 30 feet in height, except as allowed under DCC 18.120.040. FINDING: The applicant proposes to use greenhouses for marijuana production. The proposed greenhouse are less than 30 feet in height; the exact design of the new greenhouses will be determined in association with subsequent building permit review(s). All greenhouses will be located within the identified Building Envelope area and no new greenhouse will be erected or enlarged to exceed 30 feet. Building Height: No building or structure shall be erected or enlarged to exceed 30 feet in height, except as allowed under DCC 18.120.040. 247 -18 -000053 -AD Page 6 of 22 3. Section 18.16.070. Yards. A. The front yard shall be a minimum of.• 40 feet from a property line fronting on a local street, 60 feet from a property line fronting on a collector street, and 900 feet from a property line fronting on an arterial street. FINDING: The property abuts Mock Road, a local street. As shown on the Site Plan, the revised Building Envelope area will be located over 40 feet from the front property line, which conforms to this standard. B. Each side yard shall be a minimum of 25 feet, except that for a nonfarm dwelling proposed on property with side yards adjacent to property currently employed in farm use, and receiving special assessment for farm use, the side yard shall be a minimum of 100 feet. FINDING: The proposal is not for a non-farm dwelling, therefore this section establishes a 25 -foot side yard setback requirement. As shown on the Site Plan, the revised Building Envelope area will be located over 25 feet from the side property lines, thus in conformance with this standard. C. Rear yards shall be a minimum of 25 feet, except that for a nonfarm dwelling proposed on property with a rear yard adjacent to property currently employed in farm use, and receiving special assessment for farm use, the rear yard shall be a minimum of 100 feet. FINDING: The proposal is not for a non-farm dwelling, therefore this section establishes a 25 -foot rear yard setback requirement. As shown on the Site Plan, the revised Building Envelope area will be located over 25 feet from the rear property line, thus in conformance with this standard. D. In addition to the setbacks set forth herein, any greater setbacks required by applicable building or structural codes adopted by the State of Oregon and/or the County under DCC 15.04 shall be met. FINDING: No additional required setbacks have been identified in the record. B. Chapter 18.56 Surface Mining Impact Area Combining Zone - SMIA Section 18.56.020. Location. The SMIA zone shall apply to all property located within one-half mile of the boundary of a surface mining zone. However, the SMIA zone shall not apply to any 247 -18 -000053 -AD Page 7 of 22 property located within an urban growth boundary, city or other county. The extent and location of the SMIA Zone shall be designated at the time the adjacent surface mining zone is designated. FINDING: Surface mine site no. 357, the surface mine associated with the SMIA zone in this area, has been reclaimed. Therefore, the provisions of this chapter are not applicable. C. Chapter 18.116, Supplementary Provisions Section 18.116.330, Marijuana Production Processing, and Retailing. A. Applicability. Section 18.116.330 applies to: 1. Marijuana Production in the EFU, MUA-10, and RI zones. 2. Marijuana Processing in the EFU, MUA-10, TeC, TeCR, TuC, Tul, Rl, and SUBP zones 3. Marijuana Retailing in the RSC, TeC, TeCR, TuC, Tut, RC, Rl, SUC, SUTC, and SUBP zones. 4. Marijuana Wholesaling in the RSC, TeC, TeCR, TuC, RC, SUC, and SUBP zones. FINDING: The applicant has proposed Marijuana Production in the EFU zone. This section applies. 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 MUA-10 zones, the subject legal lot of record shall have a minimum lot area of five (5) acres. FINDING: The subject property is located within the EFU zone and it is a legal lot of record. According to this section the minimum lot area is required to be at least 5 acres. The subject property is 83.79 acres in size, well in excess of 5 acres and in conformance with this requirement. 2. Indoor Production and Processing. b. In the EFU zone, marijuana production and processing shall only be located in buildings, including greenhouses, hoop houses, and similar structures. C. In all zones, marijuana production and processing are prohibited in any outdoor area. 247 -18 -000053 -AD Page 8 of 22 FINDING: The subject property is located within the EFU zone. With the revised Building Envelope location, production will still be located within greenhouses. Outdoor production and/or processing is not proposed; therefore the proposal conforms to this section. No Outdoor Production: Marijuana production is prohibited in any outdoor area. 3. 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: L 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. FINDING: The subject property, located within the EFU zone, is 83.79 acres in size, thus this standard allows a maximum mature plan canopy size of 40,000 square feet. While the location of the new greenhouse building envelope is proposed to be relocated, overall the site will continue to accommodate no more than 40,000 square feet of mature canopy area, in accordance with this section. Maximum Mature Plant Canopy Size: The maximum canopy area for mature marijuana plants shall not exceed 40,000 square feet at any time. 4. Maximum Building Floor Area. in the MUA-10 zone, the maximum building floor area used for all activities associated with marijuana production and processing on the subject property shall be: 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: 5,000 square feet. 247 -18 -000053 -AD Page 9 of 22 FINDING: The subject property is not located in the MUA-10 Zone. This criterion does not apply. 5. 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) registered medical marijuana grow site shall be allowed per legal parcel or lot. FINDING: The applicant will have no more than one OLCC or OHA marijuana grow site license at any one time, which conforms to this standard. 6. Setbacks. The following setbacks shall apply to all marijuana production and processing areas and buildings: a. Minimum Yard Setback/Distance from Lot Lines: 100 feet. FINDING: The revised Building Envelope area is shown on the submitted Plot Plan. The revised new greenhouse Building Envelope area is over 100 feet from any property line, which conforms to this standard. b. Setback from an off-site dwelling. 300 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. C. Exception: Any reduction to these setback requirements may be granted by the Planning Director or Hearings Body provided the applicant demonstrates the reduced setbacks afford equal or greater mitigation of visual, odor, noise, lighting, privacy, and access impacts. FINDING: The Site Plan documents that the distance to the nearest offsite dwelling is 840 feet, which is in excess of 300 feet and in conformance with this standard. No exceptions are proposed. 7. Separation Distances. Minimum separation distances shall apply as follows: a. The use shall be located a minimum of 1000 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 247 -18 -000053 -AD Page 10 of 22 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. b. For purposes of DCC 18.116.330(8)(7), all distances shall be measured from the lot line of the affected properties listed in DCC 18.116.330(B)(7)(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(8)(7) shall not result in the marijuana producer or marijuana processor being in violation of DCC 18.116.330(8)(7) if the use is: i. Pending a local land use decision; ii. Licensed or registered by the State of Oregon; or iii. Lawfully established. FINDING: The Site Plan includes 1,000 -foot buffer from the corners of each of the revised new greenhouse Building Envelope area, documenting the extent of the area that could be used for marijuana production as part of this proposal. As documented on the Site Plan, this buffer area extends into 6 tax lots (2 to the north, 3 to the south, and 1 to the east). None of these properties have received approval for any of the uses that require 1,000 -foot separation. Therefore, the proposal complies with this section. 8. 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 247 -18 -000053 -AD Page 11 of 22 marijuana production access from all owners who have access rights to the private road or easement. The written consent shall.- i. hall.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. FINDING: The marijuana production use is planned to have over 5,000 square feet of canopy area; therefore these standards apply. The property has frontage and direct access onto Mock Road, a constructed County road. Therefore the proposal conforms to these standards. 9. 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. FINDING: While the proposal modifies the location of the "Building Envelope" for the new greenhouses, it does not alter the approved lighting method, which is natural lighting for growing operations, and will also include grow lighting. Grow lighting in the greenhouses is proposed to be limited to the hours of 7:00 am - 7:00 p.m., in accordance with this section. The grow lighting will be shielded and only project below the horizontal plane of the lowest light emitting part, in accordance with this section. Staff finds these criteria will be met and adds the following condition to ensure compliance with the requirements of this section. Lighting: The following lighting standards shall be met: (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 247 -18 -000053 -AD Page 12 of 22 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; and (c) The light cast by exterior light fixtures other than marijuana growing lights shall comply with DCC 15.10, Outdoor Lighting Control. 10. Odor. As used in DCC 18.116.330(8)(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. L 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. FINDING: The applicant submitted a site-specific report prepared by Oregon -licensed Mechanical Engineer Rob James, PE of ColeBreit Engineering. The report states: For odor control at the greenhouse farm, NCM Environmental Solutions will provide a perimeter odor neutralization system, as described in the attached proposal letter. Briefly, the system detects wind direction and applies the odor neutralizer where and when needed. This type of odor control technology has been effectively applied in many project for both cannabis and other types of projects around the country (such as garbage dumps/landfills). Please refer to the NCM proposal for more details, NCM Environmental Solutions proposal states: 247 -18 -000053 -AD Page 13 of 22 Client contacted NCM Environmental Solutions to design an odor management plan detailing steps that will be taken to ensure that the odor of marijuana (cannabis) will not emanate beyond the property line of the facility, including as necessary the installation and use of an odor control dispersion system. NCM specializes in odor control. Our parent company has over 25 years' experience in designing and manufacturing odor control neutralizers at our manufacturing plant. Our neutralizer has two active parts of the product that play key roles in the neutralization of the malodors, fragrance and Metazene®. Metazene® is an odor neutralizing compound that directly interacts with malodors. Typical malodors, such as 'cannabis', 'fishy', 'putrid', or'rancid', are made up of highly volatile aromatic compounds, meaning they tend to be the first aromas that you smell. Metazene® reacts with these compounds to form a complex ion that acts like a net to surround and envelopes the malodor. This complex ion becomes 'heavy' and less volatile resulting in the neutralization of the malodor. The fragrance is an odor masker. It is made up of various essential oils and nature identical aroma chemicals as well as some solvents to increase tenacity and longevity. NCM also custom designs, installs and services odor control dispersion systems designed to disperse our neutralizer & neutralize odors before they become a nuisance. In addition to manufacturing neutralizers and delivery systems NCM offers modeling & consulting services to evaluate the localized impacts of odors generated at cannabis growing operations as well as dispensaries and facilities handling cannabis. By implanting the proposed modeling services, odor control system and neutralizer regrown will ensure that it is taking state of the art measures once only available in the waste industry to identify the dispersion of odors and implement the best practices to neutralize them. Staff notes that the NCM Environmental Solutions proposal includes site-specific figures. Staff finds these criteria will be met when the applicants install the odor control systems as specified in the mechanical engineer's report, and adds the following condition to ensure ongoing compliance with the requirements of this section. Odor: The proposed odor control system must at all times prevent unreasonable interference with neighbors' use and enjoyment of their property. The odor control system shall be maintained in working order and shall be in use. 11. Noise. Noise produced by marijuana production and marijuana processing shall comply with the following. 247 -18 -000053 -AD Page 14 of 22 a. Sustained noise from mechanical equipment used for heating, ventilation, air condition, odor control, fans and similar functions shall not exceed 30 d8(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 exempt from protections of DCC 9.12 and ORS 30.395, Right to Farm. Intermittent noise for accepted farming practices is permitted. FINDING: The applicant submitted a site-specific report prepared by Oregon -licensed Mechanical Engineer Rob James, PE of ColeBreit Engineering. The report states the applicants will use interior propane -fired heater units that will not be audible from outside the building. The applicant will use an in-line fan that will be located inside the greenhouse and will not generate noise outside the building. The odor control system will also not generate any off- site noise. Staff finds these criteria will be met when the applicants install the mechanical equipment as specified in the mechanical engineer's report, and adds the following condition to ensure ongoing compliance with the noise requirements of this section. Noise: Sustained noise from mechanical equipment used for heating, ventilation, air conditioning, 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. 12. 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. 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 247 -18 -000053 -AD Page 15 of 22 hazardous vegetation; the commercial harvest of forest products in accordance with the Oregon Forest Practices Act, or agricultural use of the land. FINDING: The subject property is not located within a Landscape Management Combining Zone. No new fencing is proposed. No razor wire or similar fencing is proposed. The revised new greenhouse Building Envelope area is in an area that does not have any trees, and very limited shrub cover. As proposed, the tree and shrub covering will be retained on the site, in conformance with this standard. Staff finds these standards can be met and adds the following condition to ensure compliance with the requirements of this section. Fencing: 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. 13. 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. FINDING: Submitted as an exhibit to the application materials is proof of water rights that document conformance with this section. Water: The use of water from any source for marijuana production shall comply with all applicable state statutes and regulations including ORS 537.545 and OAR 690-340-0010. 14. 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 afire protection district. FINDING: No new processing is proposed. This section does not apply. However, the property is within the boundaries of the Deschutes County Rural Fire Protection District #2, thus in accordance with this standard. 247 -18 -000053 -AD Page 16 of 22 15. Utility Verification. A 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. FINDING: The applicant submitted a "will serve" letter from the Central Electric Cooperative (CEC) datedJune 14, 2017, including information identifying the use as marijuana production and that the electrical load can be provided for. The letter from CEC states: In response to your Inquiry, please be advised that property located In T. 165., R.1 1E., W.M., Section 35, Tax Lot 2000, Deschutes County, Oregon, is within the service area of Central Electric Cooperative, Inc. Central Electric Cooperative has reviewed the provided load information (Existing 1,200 amp Three phase 480 volt service) associated with the submitted Cannabis Grow Facility and is willing and able to serve this location in accordance with the rates and policies of Central Electric Cooperative This is the only utility the proposal will utilize besides water, which is addressed above. This criterion is met. 16. 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. FINDING: The site will use security cameras. The site will have an OLCC compliant security system, which will only record activity on the subject property as required by OLCC, and in accordance with this section. Security Cameras: Security cameras shall be directed to record only the subject property and public rights-of-way, except as required to comply with requirements of the OLCC. 17. 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). FINDING: As originally approved, a secure waste receptacle will is located at the northwest corner of the existing production building. The secure waste receptacle will be maintained under control of Oregrown Industries, Inc. in accordance with this requirement. No changes are proposed at this time. 247 -18 -000053 -AD Page 17 of 22 Waste: The marijuana waste receptacle shall be stored within the limited access areas within the production buildings, and shall be in the possession of and under the control of the OLCC licensee. 18. Residency. In the MUA-10 zone, a minimum of one of the following shall reside in a dwelling unit on the subject property: a. An owner of the subject property; b. A holder of an OLCC license for marijuana production, provided that the license applies to the subject property, or C. A person registered with the OHA as a person designated to produce marijuana by a registry identification cardholder, provided that the registration applies to the subject property. FINDING: The subject property is not in the MUM 0 zone. This section does not apply. 19. Nonconformance. All medical marijuana grow sites lawfully established prior to June 8, 2016 by the Oregon Health Authority shall comply with the provisions of DCC 18.116.330(8)(9) by September 8, 2016 and with the provisions of DCC 18.116.330(B)(10-12, 16, 17) by December 8, 2016. FINDING: A medical marijuana grow site was lawfully established on the property prior to June 8, 2016 by the Oregon Health Authority. However, this proposal does not rely on or continue the non -conforming medical marijuana use. 20. 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, 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. C. In the EFU, MUA-10, and Rural Industrial zones, the following uses are prohibited on the same property as marijuana production: 247 -18 -000053 -AD Page 18 of 22 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. FINDING: None of the prohibited uses have been proposed by the applicant. Staff adds the following condition to ensure ongoing compliance with the requirements of this section. Prohibited Uses: The uses listed in DCC 18.116.330(B)(20) shall be prohibited on the subject property so long as marijuana production is conducted on the site. D. 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(C)(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. Marijuana Control Plan to be established and maintained by the Community Development Department. 247 -18 -000053 -AD Page 19 of 22 e. Conditions of Approval Agreement to be established and maintained by the Community Development Department. f. This information shall be public record subject to ORS 192.502(17). FINDING: Compliance with the annual reporting obligation of this section is required. The applicant has agreed to file the annual report each year in a timely manner. Staff adds the following condition to ensure compliance with the requirements of this section. Annual Reporting: The annual reporting requirements of DCC 18.116.330(D) shall be met. IV. CONCLUSION Based on the foregoing Findings, staff finds that the proposed marijuana production facility can comply with the applicable standards and criteria of the Deschutes County zoning ordinance if conditions of approval are met. V. DECISION APPROVAL, subject to the following conditions of approval. VI. ONGOING CONDITIONS OF APPROVAL 1. Use & Location: Marijuana production is conditionally approved inside the two approved structures. This approval is based upon the application, site plan, specifications, and supporting documentation submitted by the applicant. Any substantial change in this approved use will require review through a new land use application. 2. Building Height: No building or structure, including greenhouses, shall be erected or enlarged to exceed 30 feet in height, except as allowed under DCC 18.120.040. 3. No Outdoor Production: Marijuana production is prohibited in any outdoor area. 4. Maximum Mature Plant Canopy Size: The maximum canopy area for mature marijuana plants shall not exceed 40,000 square feet at any time. 247 -18 -000053 -AD Page 20 of 22 S. Lighting: The following lighting standards shall be met. a. Inside building lighting 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. The light cast by exterior light fixtures other than marijuana growing lights shall comply with DCC 15.10, Outdoor Lighting Control. 6. Odor: The proposed odor control system must at all times prevent unreasonable interference with neighbors' use and enjoyment of their property. The odor control system shall be maintained in working order and shall be in use. 7. Noise: Sustained noise from mechanical equipment used for heating, ventilation, air conditioning, 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. 8. Fencing: 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. 9. Water: The use of water from any source for marijuana production shall comply with all applicable state statutes and regulations including ORS 537.545 and OAR 690-340- 0010. 10. Security Cameras: Security cameras shall be directed to record only the subject property and public rights-of-way, except as required to comply with requirements of the OLCC. 11. Waste: The marijuana waste receptacle shall be stored within the limited access areas within the production buildings, and shall be in the possession of and under the control of the OLCC licensee. 12. Prohibited Uses: The uses listed in DCC 18.116.330(B)(20) shall be prohibited on the subject property so long as marijuana production is conducted on the site. 13. Annual Reporting: The annual reporting requirements of DCC 18.116.330(D) shall be met. 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: 247 -18 -000053 -AD Page 21 of 22 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(C)(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. VII. DURATION OF APPROVAL: The applicant shall complete all conditions of approval and obtain building permits for the proposed use within two (2) years of the date this decision becomes final, or obtain an extension of time pursuant to Section 22.36.010 of the County Code, or this approval shall be void. This decision becomes final twelve (12) days after the date of mailing, unless appealed by a party of interest. DESCHUTES COUNTY PLANNING DIVISION f�A�y Written by: Will Groves, Senior Planner Reviewed by: Peter Gutowsky, Planning Manager 247 -18 -000053 -AD Page 22 of 22 0 Cr 64575 MOCK RD, BEND, OR 97701 24718000053AD PINE I A URST RE, 0 Er TUMLO RESERVOIR RD 2 Deschutes County GIS, Sources. Esd, USGS, NOAA 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 May 16, 2018 DATE: May 10, 2018 FROM: Anthony Raguine, Community Development, 541-617-4739 TITLE OF AGENDA ITEM: Consideration of Order 2018-037; KCDG/Tanager Record Objection RECOMMENDATION & ACTION REQUESTED: On April 12, 2018, the Board of County Commissioners (Board) conducted a public hearing on the proposed KCDG/Tanager projects. On May 2, 2018, the Trustees of the Bishop Family Trust (Bishops) filed an objection to the record. A response by KCDG/Tanager was filed the same day. On May 3, 2018, County Legal Counsel notified the parties that the Board was suspending all time limits and deadlines associated with the written record period pending a resolution of the Bishops' record objection. Attached is an order to not reject evidence and testimony as requested by the Bishops and to resume the written record time limits and deadlines. Additionally, staff attaches the Bishops' record objection request and KCDG/Tanager's response. ATTENDANCE: Anthony Raguine, Senior Planner; Adam Smith, Assistant Legal Counsel From: Jennifer Braaar To: Tony DeBone; Tammy Baney; Phil Henderson; Anthony Raguine Cc: David Doyle Subject: Bishop Request to Reject New Evidence - File Numbers 247 -17 -000627 -CU, -629-PA, -636-CU, -637-TP, -639-CU, -640-SP, and -641-LM Date: Wednesday, May 2, 2018 12:28:17 PM Attachments: image005.ono image006.ono Bishop 5-2-18 Reauest to Reject New Evidence Letter PDF Dear Chair DeBone, Commissioners, and Anthony, Please find attached the Bishops' request to reject new evidence improperly submitted by the applicants during the rebuttal period. Anthony, please confirm your receipt and include this letter in all the record for all of the applications referenced above. A hard copy will follow by overnight delivery. Thank you for your prompt attention this matter. Jennifer Bragar I ibragar(@tomasilegal.com Tomasi Salyer Martin 1 121 SW Morrison Street, Suite 1850 1 Portland, Oregon 97204 Tel: 503-894-9900 1 Fax: 971-544-7236 1 gip_//www tomasile ag I com certified I'()MASISiNlYlI2NviARFI_N WBENC e . - ...,. . .i Confidentiality Notice: This e-mail message may contain confidential or privileged information. If you have received this message by mistake, please do not review, disclose, copy, or distribute the e-mail. Instead, please notify us immediately by replying to this message or telephoning us. Tax Advice Notice: IRS Circular 230 requires us to advise you that, if this communication or any attachment contains any tax advice, the advice is not intended to be used, and cannot be used, for the purpose of avoiding federal tax penalties. A taxpayer may rely on professional advice to avoid federal tax penalties only if the advice is reflected in a comprehensive tax opinion that conforms to stringent requirements. Jennifer M. Bragar Attorney Admitted in Oregon, Washington, and California jbragar@tomasilegal.com T(7MASI SALYCRMARTIN May 2, 2018 DELIVERED BY EMAIL (with hard copy to follow by Overnight Mail) Deschutes County Board of Commissioners 117 NW Lafayette Avenue Bend, OR 97708-6005 121 SW Morrison St, Suite 1850 Portland, Oregon 97204 Tel 503-894-9900 Fax 971-544-7236 www.tomasilegal.com RE: Request to Reject Applicants' New Evidence on File Numbers 247 -17 -000627 - CU, -629-PA, -636-CU, -637-TP, -639-CU, -640-SP, and -641-LM Dear Chair DeBone and Commissioners, As you know, this office represents Thomas and Dorbina Bishop, Trustees of the Bishop Family Trust who reside at 63382 Fawn Lane adjacent to the subject properties. This letter is submitted as a request to reject new evidence improperly submitted by the Applicants during the rebuttal period. Please include this letter in the record, as the Bishops are required to raise procedural issues to preserve the issue for appeal. Brown v. City of Portland, 33 Or LUBA 700, 704 (1997), and Frewing v. City of' Tigard, 47 Or LUBA 331 (2004) (citing the due process protections under Fasano). The structure of ORS 197.763(6) is to provide the opponents the last word on evidence, while applicants are provided the last word on argument. The following new evidence submitted by the Applicants' counsel and individual members of the LLC's on April 27, 2018 should be rejected because the Bishops and other opponents are not provided the opportunity to respond and all of the new evidence should have and could have been submitted during the open record period: April 27, 2018 Letter,froni Ken Katzaroff and Liz Fanch.er. • Exhibit A should have and could have been submitted in the open record period; • Exhibit D is new evidence that is irrelevant to the land use approval criteria for these applications; • Exhibit F, as well as factual testimony from Patrick Cole, should have and could been submitted in the open record period; • Exhibit G should have and could have been submitted in the open record period; • Exhibit H should have and could have been submitted during the open record period; • Exhibit I, pages 75-79 (referred to as Exhibit A to that letter) and the portion of the cover letter in Exhibit I that relies on that deposition testimony should be rejected because it should have and could have been submitted during the open record period; and • Exhibit J should have and could have been submitted during the open record period. TOMASI SALYER MARTIN Deschutes County Board of Commissioners Page 2 April 27, 2018 Addendum to Rebuttal Comments from Ken Katzaroff: • The letter and its Exhibit should have and could have been submitted in the open record period. Email from Eric Cadwell to the Board of County Coninissioners sent at Fri, Apr 27, 2018 at 4:55 PM: On its face, this email states it is not addressing land use approval criteria and it should be rejected or ignored for that reason. However, the Bishops deserve the due process right to respond to these character assassinations and wholly unsubstantiated claims of trespass, particularly to establish that they were out of the country when photographs that are referred to in Mr. Cadwell's emails were taken and they did not take such photographs. Attached as Exhibit I is a redacted version of the April 27, 2018 Letter from Ken Katzaroff and Liz Fancher with improper argument and reference to evidence that was improperly submitted redacted. The original letter should be rejected, and this redacted version accepted instead. Attached as Exhibit 2 is a redacted version of page 2 of Applicants' Exhibit I redacting improper reference to deposition testimony. The original page 2 of Exhibit I should be rejected and replaced with this redacted version. Alternately, the Bishops request that the Board reopen the record to allow them to respond to new evidence submitted. in the absence of either of these remedies the Bishops' substantial rights will be prejudiced because they will not have the opportunity to respond to all of the Applicants' new evidence used to justify their proposal. Thank you for your prompt consideration of this request. Sincerely, Jennifer M. Bragar cc: clients Anthony Raguine (by e-mail) Ken Katzaroff (by e-mail) Liz Fancher (by e-mail) Carol Macbeth (by e-mail) Dave Doyle (by e-mail) B ISH OP -LU 7\0040 6474.000 .I n�1neF � April 27, 2018 Via Nand Delivery to CDI) Deschutes County Board of County Commissioners c/o Anthony Raguine Deschutes County Community Development: Department 117 NW Lafayette Ave. Bend. OR 97701 Re: Applicants' Comments on Application.File Nos. 247 -17 -000636 -CU; -000639- CU, -0006.37-TP; -000640-SP; -641-1,M; -000627-CU; -000629-PA Dear Commissioners: We represent Tanager Development, LLC (""Fanager") and KC Development Group LI_,C ("KCDG") in Mlle above referenced applications. The two applicants represent two, separately approvable projects. I lowever, we provide this single letter in rebuttal to all Tiles because opponents claim that many of the issues raised by thea apply to all applications. "They also claim these issues merit denial of our land use applications. This is simply ,not the case. All applications submitted by both applicants meet the relevant and applicable criteria under the Deschutes County Code (the "Code" or "DCC "), and should, therefore, be approved. 1. Applicants' Nar-rative Has Karver Changed and is Irrelevant In her submittal on behalf of the Bishop Family Trust ("Bishops"), Ms. Brat ar argues that the "Developers" (presumably, KCDG), have flipped their story and so they should not get an approval. This argument is merely noise that has no bearing oil whether the applications meet. file relevant approval criteria. It also ignores the actual history, facts, and circumstances that surround the current applications. In 2014, 711) (not KCDG or Tanager) submitted a land use compatibility statement ("LUCS") to Deschutes County which precipitated Bishops' vigorous opposition to the ponds. 'Throughout that proceeding; it was argued that TID's primary purpose for use of the ponds was for storage and reregula.tion. 11 was also argued that KCDG planned an ancillary use of the ponds as a recreation - oriented facility ("ROP). The ROF use represented the primary use for KCDG, and now, Tanager. "This remains our position. "There is nothing wrong with two different parties having two different, primary purposes Ii>r the same ponds. This happens all of the time. Page 1 of EXHIBIT 1 Page 1 of 9 0 I"ANAGE1=i A reasonable example may be the Boys & Girls Club building in downtown Bend that is also used as a church. The primary use of the building for the Boys & Girds Club is as an after school programs building. The primary use of the building for Compass Church is as a place of worship. Same facility, two completely different uses and primary purposes. In this case, TID's primary purpose (anal in fact only purpose for the ponds), if allowed and approved, is to use the ponds as a reregulation and storage reservoir. This use is being proposed by and through KCDG's application for such use. Tanager is proposing its own primary use of the ponds as a recreation -oriented f=acility requiring large acreage ("ROF"). This is different and separate use from the use intended by TID. The work to build the ponds for the ROF occurred in 2014 under the belief that. t:he work was exempt from land use review. The applicant, therefore, seeks retroactive approval of the work and the right to use the ponds for reereational activities. ']'his is not an uncommon occurrence in land use cases. If an applicant can meet the code, the County may approve an application after a structure has been built or a use has been established. Ms. Bragar is trying to contuse the issue and paint the current applications into a corner vvilh no way out, by presenting inconsistent arguments. In one paragraph she argues we are bound to TID's statements and 'FI.D's use of the reservoir as the primary purpose, and in the next she argues that our relationship with'I'll) is completely "void" and there is no involvement.' The current applicants have always been clear that we intend to use the ponds for recreation, and to allow them to be used by TID as a storage and reregulation reservoir. T'hat has never changed. Tanager's application presents to the County, and the greater public, the full and mature plan Im use and management of the Subject Property. "tanager's planned development and recreational facilities applications provide a complete, standalone plan for the property. Recreational use is Tanager's primary purpose for the ponds and the reason for why they were established. KCDG's application asks for the approval ol'TID's additional use of the recreational reservoirs to store water. Approval o1'TID's use was determined to be required by the Board in 2015 in order for 'I'll) to use the reservoirs for storage. The Board is free, however. to determine that such a permit is not required. F;ach set of applications is separate and represents two distinct purposes and uses ofthe ponds. We ask that the Board approve Tanager's applications so they may be Bishops have argued that the irrigation contract between KCDG and TID may be void because the original water transfer contemplated was not approved by OWRD. As we explained at the hearing, we believe provisions of that contact may continue to bind KCDG. In any event, it is irrelevant to the applicable criteria. Bottom line is that KCDG seeks approval for TID to be able to use the ponds as a reservoir, and I'll) has submitted substantial evidence that it would like permission to use the ponds fa' benefit of its patrons. The Board previously determined that permit which KCDG is applying for is necessary to permit TID's use. We are simply asking that Board gives us the opportunity to keep our promises to T1D and to benefit the districts patrons. Page 2 of 9 EXHIBIT 1 Page 2 of 9 f MAGER used for recreational activities. W also ask that the Board approve KCDG's applications so that the ponds m.ay also serve as a reregulation and storage reservoir for `IID. U. No Existing Violations of the band Use Code Exist on the Subject Property Bishops argue that KCMG received a "Notice of Violation" on October 10, 2014 and that it proceeded "in disregard of that notice." I irst, it is interesting that Bishops decided not to include that Notice as part of their submittal. We've attached it here as Exhibit 13. As is apparent on its face, the'Notice is only "to inform you of an alleged violation" (emphasis added). It is not a determination that a violation had occurred. Furthermorc, all code enforcement files have been closed. There are .no pending; code enforcement riles for the Subject Property, as confirmed by code enforcement officials in this record. Additionally, although not generally relevant to the current applications and applicable criteria, Mr. Timothy Grundernan, the former County code enforcement officer who sent the Notice, testified at the October 2017 hearings officer hearing regarding the code enforcement process with regards to the Subject Property. A copy transcript of his testimony is attached as Exhibit C. We will more; specifically address opponents' arguments regarding, DCC; 22.2.0.015 in our linal legal argument. I-Ii.Aphlicants do not Rely on planning Staff Bragar accuses us of "constantly blaming local government and shite agency staff for their own missteps, misrepresentations, manipulations and incorrect analysis of how to obtain approval..." That is complete hogwash. We do not blame or claim to rely upon or bind any regulatory authority by staff advice. We have , however, been forced to work tirelessly to disprove Bishops' repeated claiins that we "dug first and asked questions later" or that we attempted to "skirt the law" -- that at every step of the way we spat in the face of staff and decided to do things however we wanted. That narrative is as untrue as it is irrelevant to the applicable approval criteria. Applicants consulted with all appropriate governing agencies and attempted to proceed within the confines of the law when planning the ponds. We are not claiming that any governmental authority is now "estopped" from changing interpretations or from requiring additional review. Opponents' false narrative can be properly rejected as irrelevant and factually incorrect. IV. Surface Mining Regulatory `system Bishops continue to argue that the County's definition of "surface mining" is preempted by state law. We will address these arguments fully in or.n• final submittal. Page 3 of 9 EXHIBIT 1 Page 3 of 9 - TANAGER However, as is relevant now, opponents still have not addressed the clear text of the state law, ORS 517.780 and ORS .517.750; which state that those definitions only apply to ORS 517.702 to 516.989. This is a clear statement that the definitions are written for DOGAMI's surface mining operating permit and reclamation plan program only and that there is no intent to preempt the County's authority to adopt a different definition for other aspects of surface mining not regulated by DOGAMI. The statutes simply have no bearing on Deschutes County's land use code. Our legal position makes sense. As Ms. Bragar points out on page 5 of her April 20, 2018 letter, DOGAMI has its own permitting requirements, which require a land use decision from a local government before a DOGAMI permit will be issued. Thus, it is clear that DOGAMI does not preempt County .land use regulations. Ms. Bragar has made our point for us. Applicants would also point out that Deschutes County does not have a grading ordinance. It generally relies upon the on-site construction exemption from the Code. V. Off -Site Use of Gravel Bishops continue to argue that KCDG removed "significant aggregate offsite" to improve a road across the Klippel Water property and a driveway on the MacDowall property. Bishops claim that this extremely minor activity, if proven, would mean that the Code's on-site construction and on-site road construction exemptions from "surface mining" would not apply to the on-site construction of the ponds and to KCDG's road work... Respectfully, we disagree. The gravel operations did not violate the County Code and did not convert raining for the primary purpose of ort -site construction to a different use. 1"he primary purpose of the gravel stockpiles was determined by the T[J-14-8 permit, on-site road construction and maintenance and landscaping. That work has not been completed because Bishops' have been successful in primarily stopping KCDG from completing the project to date. 'I"he primary purpose of the excavation and grading of the ponds was on-site construction for the recreation -oriented facility. That is all that is required by the Code. Importantly, opponents have not addressed the fact that the construction and maintenance of access roads is a permitted outright activity. Further, they ignore the fact that rock crushing to create materials for use on roads and driveway was expressly permitted work. Page 4 of 9 EXHIBIT 1 Page 4 of 9 0 TANAC��E11 Pursuant t:o TU -14-8, KCDG had authority to rock crush and to use such material for road construction and landscaping purposes. Opponent Bishops argue Applicants cannot rely on the on-site construction mining exception because crushed material was moved off of the Suilject Property and that "1'U-14-8 only allowed activity to occur on one tax lot, tax lot 824. This argument. misinterprets TU -14-8 and ignores the true facts and cireninstances. The purpose of the TU -14-8 permit was to crush rock into gravel on a particular property in order to preserve, maintain and repair roads and streets. The permit does not restrict the use of the gravel to the parcel where it was crushed. A stockpile of material exists today because the Applicants plan to use the materials to complete their development. project. Under the terms of T1W4-8, materials may be stored on site until the project is completed. Opponents try to conflate the permit's listing of the tax lot where the rock crushing activity occurred into a requirement that crushed material cannot be applied to any road unless it was on the same tax lot. That interpretation is not supportable. The correct interpretation is that of county staff, the past hearings officer, and the BOCC. All have determined that the activity of rock crushing must take place on the tax lot in question and that no material from outside the property may be brought to the site to be crushed. it wasn't. That is all thatis required. See TU -14-8 Decision, see also, BOCC Decision, Exhibit F (adopts the hearings officer interpretation that rock crushing was restricted to the Subject. Property; finds that that work done with the crushed rock, including road maintenance, is a different activity than the grading to re -shape the mining pits into ponds), As noted in both the decision of TU -14-8 and in the BOCC Decision, road maintenance is permitted outright in the RR- l 0 Zone. That includes re-laying gravel, regardless of the source of the gravel. Bishops now assert that the existing stock pile of gravel on the Sub b'ject Property should be considered a "violation" which bars the processing of the present applications. They argue that the gravel should have been removed within 30 days of the rock crushing activity that was authorized. Respectfully, that is not what the permit required, Under TU -14-8, only rock crushing equipment was to be removed rvithin 30 days, but material not used was to be removed within "60 days of comlaleting the project." KCDG has not yet finished the project. As discussed at the Hearing, all work was stopped in 2014. lapon approval of the pending applications, the stock pile shall be used to facilitate the establishment of required infrastructure related to the planned development and ROF. A condition of approval may ensure compliance. ' Further, this interpretation makes sense. Rock crushing activity requires a permit and review period. Such activity was not a prerequisite to the grading activity to re -contour the pits to enable the placement of the liners and establishment of the reservoirs. "Chat activity is under review now as on-site construction for the recreation -oriented facility. The creation of gravel occurred as a result of a County permitted use from "fl1-14-8 which was not appealed by Bishops. 'Che use of the gravel is not restricted to the lot where it was crushed and this issue has no relation to the on-site construction of the recreation oriented facility. Bishops appear to be making this argument as a collateral attack on W-14-8 and to distract from the actual issues and applicable criteria for these applications. Page 5 of.' 9 EXHIBIT 1 Page 5 of 9 Bishops also now argue, in an attempt to "box us in," that the stock pile could never be moved off site because that would violate the "on-site construction" exemption from the definition of surface mining. They also argue that any gravel that may have beet., applied to the Klippel Water property or to the MacDowell property Nvould prevent use of the "on-site construction" exemption. Respectfully, those arguments bail for two reasons. First, the creation of the gravel stock pile is not reliant on the "on-site construction" exemption, it was done so pursuant to TU -14-8, which is a. final land use decision of the County that was not appealed and may not now be collaterally attacked. Second, the "on-site construction" exemption, if applicable, includes a de rninimis exception and only requires that the "primary purpose" be on-site construction or road construction. Lastly, even if material was moved "off-site," it is not plausible to find the amount of material to be "significant" given the context and the Bishops' arguments about hOW much material was moved for the primary purpose of excavating the ponds and the size of the stockpiles for future roads and landscaping work. At the hearing before the Board, Mr. Kimble testified he believed no material went onto the MacDowall property; that it was only applied oil the road casement through the K_CDG property to the MacDowall property.. So, Bishops' alleged use of gravel cannot be called "significant." It clearly tweets the Code's de MirriMis e:xceptiora. It is clear that the "surface mining" work to create the ponds and to crush rock for on-site road construction and maintenance, and landscaping' were the primary purpose of mining. No reasonable interpretation can be made that this shifts the primary purpose of the activity from "on-site construction" and "on-site road construction" to off' -site road building. 'ill. `><')1D's Continued Involvement & Rere.guuhrtion While TIl) has no involvement in Tanager's applications, it would like to use the ponds as a reservoir to improve water delivery to its patrons. This will require approval of'K(",DG's applications unless the Board determines that "111) can store water in the ponds without County approval. Bishops have argued that *111) is not involved and has no real plans to use the ponds and that TID has never contemplated re -regulation use. They cite the District's "System KCMG continues to use the stockpiled gavel to set additional underground irrigation piping throughout the Subject 1'roperC} . Page 6 of 9 EXHIBIT 1 Page 6 of 9 TANAC21-_f 3 Improvement flan." first, Bishops take this document: out of context. According to our water law attorneys, that document is meant, to be a tool to help the District secure grant funding to improve (pipe) its current canal system. Second, the District cannot generally rely on or plan for additional reregulation and storage reservoirs because they are wholly dependent upon private land_ owners allowing the District to site such reservoirs on private property - and more importantly — to pay to create the reservoirs. finis is consistent with Mr. Varco's testimony at the Hearing. Vll. Matters Not Generally Relevant to Land Use Review and Applicable Criteria of the Present .Applications a. Water Use and OWIU) Stipulated Judgment Bishops' water lawyer, .lan Neuman, submitted a letter as part of Ms. Bragar's open record submittal re -interpreting much of applicants' testimony at the .hearing and stating her view of the OWRD settlement. Our water law experts clearly do not agree with Ms. Neuman's opinion and have provided an additional response we include as lilxhibit l.. b. Sire of the Pohds is Not relevant Opponent LandWatch now argues that approval for the ponds should not be allowed because they are larger than typical "farm ponds." Respectfully, Deschutes County simply does not regulate the size (or the look) of a pond, whether it is used for farming practices or otherwise. Further, it makes sense that the ponds in this case are large, they serve multiple purposes. Primarily, 'hana.ger seeks approval of a "rccreation-oriented facility requiring large acreage... " Emphasis added. `l'he same facility also serves as the delivery point Im KCDG's and Cadwell's legally entitled irrigation water. Frothing in Deschutes County's code says a pond cannot be large, small, clover -shaped, shallow or deep, lined or not, or even have a fountain or an island. Page 7 of 9 EXHIBIT 1 Page 7of9 ED "1ANAGER Applicants' proposal meets the applicable criteria of the code, including for its proposed use of a recreation -oriented :facility requiring large acreage. c. KG Ranch - "iilfsalfa water ski lake" Opponents continue to assert that our applications should meet the same fate as those in the ICU Ranch decision, otherwise referred to by opponents as the "Alfalfa water ski lake," That case was different for many reasons; the most significant being that. the property owner destroyed a mapped and protected wetland to create the pond, in violation of state law. The ease is simply not the same. Additionally, it is worth noting that the hearings officer in the ICU Ranch decision determined that work to create the pond would be permitted as "on-site construction" based on the Board's reasoning in the KCMG LUCs decision in 2015. sec:, beton: ".Surface mining" means A, includes: 9. All or any part of tho process of mining by removal of the overburden and extraction of natural mineral deposits thereby exposed by any method including, open pit mining operations, auger mining operations, processing, surface impacts of underground mining, production of surface mining refuse and the construction of adjacent or offsite borrow pits, except those constructed for access roads; and 2. Mining which involves more than 1,000 cubic yards of material or excavation prior to ruining of a surface area of mora than one acre. f3. Does nor include; 1. The construction of adjacent or off-site borrow pits which are used for access roads to the surface mine; 2. Excavation and crushing of sand, gravel, clay, rock or other similar materials conducted by a landowner, contractor or tenant on the landowner's property for the primary purpose of construction, reconstruction or maintenance of access roads and excavation or grading operations conducted in the process of farming or cemetery operations, on -situ road construction and other onsite construction, or nonsurface impacts of undorground urines; and 3. Batching and blending of mineral and aggregate into asphaltic concrete or Portland cement concrete. FINDING: The Hearings Officer finds that, although the project 111elUdes "removal of tfue overburden and extraction of natural mineral deposits", it falls under the exceptions for excavation or grading operations conducted in the process of "other on site construction." 'this finding is consistent with the Hearings Officer's decision in 247 -14 -000 -238 -PS, as ndoptr.ci by the Board of County Commissioners. These criteria are inapplicable. Page 8 of 9 EXHIBIT 1 Page 8 of 9 0 TANAGER Vile. Conclusion Applicants will provide additional legal argument, and reser to the conclusive evidence already present in the record, that all applications meet the applicable and should be approved in our final argument submittal. Sincerely, Kenneth Katzaroff Liz Panc ler OSIS 143550 OSB 812202 Attorney for Applicants Attorney Ior Applicants Page 9 of 9 EXHIBIT 1 Page 9 of 9 Exhibit 1 J. Kenneth Katzaroff, JD April 26, 2018 Page 2 not involved in that case and therefore are ill-equipped to interpret it. As we noted above and in my April 20 letter, the Stipulated Judgment resolved all outstanding alleged water right violations and enforcement proceedings with regards to the ponds, Specifically, through the judgment, the Department withdrew its earlier "finding" that'Twnalo Irrigation District had knowingly violated the law when it filled the two ponds under the terms of the irrigation district water rights transfer statute. The Department also agreed to refrain from issuing any orders to drain the ponds until the land use and water rights application processes are complete. See Stipulated Judgment, lis 6, 8. And, once the land use proceedings are complete, the Department has specifically committed to timely processing any storage water right that. is submitted for the ponds (by either'Tumalo or KCDG). Id., 1( 8.For the interim, the judgment confirms that water may remain in the ponds at designated levels and Tumalo may re-initiate delivery of irrigation and stock water into and through the ponds for use by KCDO. Id., lis 8-9. Therefore, neither Tumalo nor KCDG are in violation of law for retaining water in the ponds or for using the ponds for delivery of irrigation and stock water. The testimony presented by KCDG with which Ms. Neuman's letter takes issue, is actually quite consistent with the terms of the Stipulated Judgment and our understanding of its intent and purposes. Ms. Neuman also attempts to characterize selected excerpts of depositions which our firm participated in as well ----either to defend or examine witnesses. She attempts to undermine information about those depositions conveyed by Mr. Katzaroff. However, it is important to know that Mr, Katzaroff is aware of the information conveyed both on and off the record during each of the depositions taken in that ease due to the fact that K.CDG was directly affected by the outcome of that case and is in a Joint Defense Agreement with Tumalo hrrigation District related to the ponds and this project. Therefore, his comments about the depositions account for more than just the information that is on Che deposition transcript. Neither Ms. Neuman, nor her co- counsel, nor their clients were involved in or present for the depositions at issue, They cannot offer the same perspective. Therefore, though she attempts to characterize `1'umalo's involvement and interest in the ponds for re -regulation purposes as a sham, Further, as Ms. Neuman's letter concedes, 'Tumalo entered into a contract and amended contract with KCDG for the very purpose of using the ponds. As a water lawyer, Ms, Neuman should understand that in order for the ponds to work as re -regulation facilities, water will need to be stored in the ponds throughout the year. That is exactly what those contracts provide for, Re - regulation within the ponds will operate largely as a bulge -in -system use, which according to the Oregon Water Resources Department's Technical Operations Manual (Dec. 29, 2008) (attached) does not require a permit from the Water Resources Department. However, a bulge -in -system use cannot result in long-term storage, therefore, stored water obtained under a water right will need to be present during other times of the year. The stored water will protect the pond liners that facilitate efficiencies in the district's and KCDG's system and will provide the baseline water levels that allow the ponds to operate as re -regulation facilities. The fact that 'Finnalo did schwabe.com Exhibit 1 2 of 79 EXHIBIT 2 Page 1 of 1 In wAa I rikle V, I � mvej 2 From: Ken Katzaroff To: Tony DeBone; Tammy Bane v; Phil Henderson Cc: Anthony Raouine; Liz Fancher; David Doyle; Adam Smith Subject: Tanager/Cadwell Response to Bishops Record Objection and Request o Reject Evidence Date: Wednesday, May 2, 2018 4:49:31 PM Attachments: AoDlicants" Response to Record Objection.pdf Commissioners, Please find our response to Bishops' request to reject new evidence. Thank you and have a terrific afternoon. Ken J. Kenneth Katzaroff, JD General Counsel & Special Projects KC Development Group, LLC Three Rivers Advisors Ken&threeriversadvisors com 503-453-0873 May 2, 2018 Via Electronic Mail Deschutes County Board of County Commissioners 1300 NW Wall St., 2nd Floor Bend, OR 97701 Re: Response to Bishops' Record Objections Dear Chair DeBone and Commissioners: TANAGER I am writing to respond to Bishops' "Request to Reject Applicant's New Evidence" dated May 2, 2018. Bishops' attorney, again, makes a legal claim that is clearly at odds with settled law. Ms. Bragar claims that ORS 197.763(6) gives opponents "the last word on evidence" during post - hearing comment periods. The law, however, says nothing of the sort. Instead, it gives "any participant" the right to respond to new evidence submitted during the first post -hearing comment period. ORS 197.763(6)(c). The law does not prohibit the filing of new evidence as a response. All documents Bishops claim should be excluded respond to new evidence filed during the first post -hearing open record period or are not new evidence. Therefore, the documents are properly included in the record. Specifically: April 27 Leiter, f •om Ken Katzaroff and Liz Faucher Exhibit A, Letter from Ken Rieck of Tumalo Irrigation District • This letter does not present new evidence on any relevant issue. It restates evidence in the existing record. • The letter responds to Item 2, "TID has no plans for regulation," pages 8-9 of Janet Neuman's April 20, 2018 memorandum to Jennifer Bragar, filed with the county by Bragar. It also responds to Ms. Newnan's claim, on page 2 of her memorandum, that KCDG is trying to use the District to legitimize it private development activities. Exhibit D, includes the County's draft 2018-2019 Community Development Department Work Plan. Ms. Bragar admits that this is "irrelevant to the land use approval criteria..." Pursuant to ORS 197.763(9)(b) evidence only includes information that is relevant to the decision. Therefore, it cannot be considered new evidence and is not properly excluded or objected to. However, as the County's proposed consideration of a grading ordinance has little bearing in this case, Applicant will not object to this exhibit's removal from consideration in the record. Exhibit F, photographs from DIAL marked to illustrate sections of roads referred to by Bragar in her post -hearing comments and information from Patrick Cole regarding the length of roads on the subject property determined from documents in the record. 0 TANAGER • This information was provided to respond to Bishop's and Bragar's new evidence, fled April 20, 2018, that claims "significant excavated material" was removed from the KCDG property. See, page 7, Bragar letter of April 20, 2018. • The photograph is essentially the same as the aerial photograph submitted by Ms. Bragar as Exhibit 8 (page 1) of her letter of April 20, 2017. The only new evidence, provided to rebut the "significant excavated material" claim is the scaled distance of what the Bragar exhibit refers to as "outline of driveway as it traverse MacDowell property." • Mr. Cole's information about the length of roads is not new evidence as it is provided by scaled plans in the record. Exhibit G & H, Transcript and recording of testimony by Ken Rieck regarding TID's need for reregulation facilities. • This information responds to Item 2, "TID has no plans for regulation," pages 8-9 of Janet Neuman's April 20, 2018 memorandum to Jennifer Bragar, filed with the county by Bragar. This memorandum also includes claims that "TID is not involved in these proceedings" and that KCDG "hopef s] to pull TID back into its private project." The transcript shows that TID does have plans for reregulation. Exhibit I, part of letter from legal counsel Elizabeth I loward that responds to Neuman memorandum of April 20, 2018 that characterized TID's involvement in the KCDG ponds for the purpose of regulation as a sham and deposition transcript of Ken Rieck, TID Manager that shows that the KCDG ponds were used for reregulation. • The letter responds to and disproves new evidence provided by Neuman in her April 20, 2018 memorandum Exhibit J, aerial photographs of area • These aerial photographs were submitted to respond to new evidence (photographs and written testimony) filed by Central Oregon LandWatch on April 20, 2018 about the typical size of ponds April 27, 2018 Addendum to Rebuttal Comments, Applicant is unsure how this addendum "prejudices" opponents, or how it constitutes new evidence on the applicable criteria. Therefore, Applicant will not object to this exhibit's removal from consideration in the record. Email from Eric Cadwell to Board of County Commissioners, is submitted in direct rebuttal and response to the April 20, 2018 letter filed by Ms. Bragar with the County. That letter, at page 12, discusses the Bishops' defense of a "SLAPP" suit brought by KCDG and the Cadwells, the Bishops' rights to public participation in land use review, and asserts that the "Bishops should be considered the heroes that they are..." • The email responds directly to the Bishops' assertions and that they should be "considered heroes" or were merely participating in the public process, as well as why that suit was filed in the first place More importantly, the contents of the email are not new evidence. We've already submitted evidence of the claims presented in the email by Mr. Cadwell. We could clearly make the same TANAGER ;GER statements in our final argument, it really is of no consequence that the email came from Mr. Cadwell directly as opposed to counsel or in our final argument. Specifically, Ms. Brianna Cadwell has submitted similar testimony below, which we include as an attachment here for your review. We also do not know why Ms. Bragar chose to submit such argument about the suit, except in an attempt to assassinate the character of the applicants. The email clearly speaks to this point. It's only reasonable that applicants would respond to such allegations in the following record period to it being raised. Lastly, as addressed above, pursuant to ORS 197.763(9)(b) evidence only includes information that is relevant to the decision. Bishops' have made no claim that the suit is relevant to the applicable criteria or how it would prejudice them. Therefore, the email is properly included for consideration. Applicants shall include a hard copy of this response with its final argument which shall be filed with the Board on May 4th, 2018. Sincerely, l J. Kenfic,th Katzarotf�` OSS 143550 November 1.7, 2017 hear Hearings Officer Hicks, While the Bishops and their attorney have the right to research me (or anyone they'd like), I continue to feel uncomfortable and concerned at the levels with which they intrude in my personal life and the personal life of my family. This latest submittal about a Facebook post I rnade 2.5 years ago is just one example. There are several things that I would like to address with ret gards to their accusations of our intentions of what we would like to do on our property (Exhibit 1.0: hosting a movie night on the water). 4=or the past three years, the Bishops and their attorney have been taking things and twisting them to serve their personal agenda against lts— anything that will make us look like awful people, if they really pt esented the facts, they would find that my Facebook posts relate to pictures of my children and family, community events we attend or host, and things that look fun or interesting to ale —things to nriake others smile. Would it be ridiculously fun to sit in an innertube in some water and watch "Jaws"? You bet it would! Who wouldn't think it would be fun to do that in their own swimming pool in their backyard, or in our case, a lake? Sure, but the reality of living in Central Oregon makes doing this neat thing a bit more difficult to do. The sun sets late in the sununer time, and by the time it sets, I want to be sitting around a campfire in my sweatpants and sweatshirt -- not in cold water when the air temperature has dropped. Let's be realistic. Vvhe.re would this type of activity be ideal? Most likely somewhere the: evenings stay warm, like Austin, +exas. if the Bishops and their attorneys were also truthful with their "research," instead of twisting something to meet their apparent vendetta against us, they would discover that my brother and his wife reside in Austin, Texas — where this f=acebook post originated front. It is an event called "Jaws on the Water" — put on by Alamo DrafthoUse, a company that does these events or public waters. My brother ;las attended the. event, and we. hope that next summer we could join them in Austin to participate in it. Over a year ago, I discovered that Petr. Bishop had been looking at my Facebook page and had actually "friend requested" me. While, again, he has the right to research me, it was a little unsettling to say the least. That same day, I changed every setting or. my Facebook page to "private." I didn't (arid still don't) feel as though i have anything to hide from anyone. What I present to people in person, or on social media, is who the same as I am in f ront of my coworkers and family members. Since I made the settings "private" over a year ago, this makes me believe that Mr. Bishop and likely his attorney have been holding onto this "post" for quite some tirne. it is personally harassing that not only does this man trespass on my property and take pictures of me and my kids to submit to public agencies, he is continuously attempting to infiltrate and shadow our life. The fact of the matter is this: in May of 2014, Mr. Bishop sat in my living room for almost 2 hours, playing with my then year and a half year old son. He told me and my husband that he was looking forward to our development. Apparently, that was all a ruse. Since then, we have requested to meet with the Bishops on any number of occasion, but they and their lawyers either refuse to respond or they Exhibit J Page 1 of 2 decline to meet to discuss any actual concerns they have. It's hard to address concerns, or to make any reasonable compromise, when they won't even engage in ,a discussion. wanted to write you a letter to address ihe Bishops use of this frustrating exhibit, which was really just r.n event in another state that looked like fun to me I apologize if my frustration level is showing, but this is beyond just a battle over the community we want to build. The Bishops have chosen to make this personal to me and my family. 1 appreciate you taking the time to read this and for taking my honest thoughts into any kind of consideration. Hurnbly Yours, Ej ianria Cadwell Exhibit 1 Page 2 of 2