Loading...
2019-123-Minutes for Meeting March 13,2019 Recorded 4/11/2019\)TES BOARD OF COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541) 388-6570 1:30 PM Recorded in Deschutes County CJ2019-123 Nancy Blankenship, County Clerk Comm! ssioners'Journal 04/11/2019 3:56:43 PM Q�G�vTES CpG�{ II I I I II II ILII II I I II I II II I I II III 2019-123 FOR RECORDING STAMP ONLY WEDNESDAY, March 13, 2019 ALLEN CONFERENCE ROOM Present were Commissioners Phil Henderson, Patti Adair, and Anthony DeBone. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; David Doyle, County Counsel; and Sharon Keith, Board Executive Assistant. Several citizens and identified representatives of the media were in attendance. CALL TO ORDER: Chair Henderson called the meeting to order at 2:30 p.m. ACTION ITEMS 1. Update on Oregon's Smoke Management Plan Ed Keith County Forester and Heather Kaisner, Health Services presented. The revisions to Oregon smoke management rules went into effect March 1, 2019. One provision of the plan is to develop community response plans. The Central Oregon Fire website, www.centraloregonfire.org reports planned prescribed fire locations and scheduled events along with health information. Ms. Kaisner reported on health impacts of wildfire smoke. Smoke sensitive receptor areas are designated as areas protected from smoke. Mr. Keith explained today's presentation was to ask for exception of the one hour threshold. Commissioner DeBone supports. Mr. Keith will then BOCC WORK SESSION MARCH 13, 2019 PAGE 1 OF 7 submit a plan for the Board's consideration of approval. Commissioner Henderson congratulated Mr. Keith for his work and testifying effort on smoke management. The plan would allow for a slight increase on the amount of prescribed burns. Commissioner Adair had heard the interview on KBND regarding smoke management but has not been asked for a television interview. Mr. Keith reported this tool of the Central Oregon Fire website will be communicated to the public. 2. Consideration of Request to Submit SAMHSA SOC Grant Application This item was pulled as it is rescheduled. 3. Environmental Health Update and Consideration of General Fund Request Health Services staff Tom Kuhn and Eric Mone presented as a follow-up from a Work Session discussion from last June. The statistics of licensed facility inspections was reviewed for the year 2018. The Board was invited to consider a ride -along on any inspection. On Saturday March 16 there is a state budget community hearing from 2:00 pm to 4:00 pm at the Fair and Expo Center. Commissioner DeBone would support testimony but recommends only one person give the testimony. Commissioner Henderson asked if Judith Ure could gather information on any related hearings. Mr. Kuhn reported in June 2018, the department requested a 12% fee increase but was granted a 6% increase. No final action taken at this time. 4. Investment Policy Update Wayne Lowry, Finance Director presented a revised investment policy regarding investing public funds. The proposed revisions were reviewed with the Investment Advisory Committee. Commissioner Henderson inquired if the new Finance Director should weigh in on since Mr. Lowry will be retiring BOCC WORK SESSION MARCH 13, 2019 PAGE 2 OF 7 in June. The policy would provide more clarity how to evaluate the investments. Mr. Lowry will return to the Board for consideration of adoption. S. 2019 - 21 Public Transit Grant Recommendations Judith Ure, Management Analyst reported the Special Transportation Fund grant cycle is underway. Every two years, funding is available through the state supporting transit services primarily for seniors and people with disabilities. Ms. Ure noted the applications are due to the Oregon Department of Transportation on Friday March 15. Six applications were received. The applications were reviewed by the Deschutes County's Special Transportation Fund Advisory Committee. Commissioner DeBone requested the newly appointed members to the Special Transportation Fund Advisory Committee also be given the opportunity to review the applications. ADAIR: Move approval of the recommendations of the Special Transportation Fund Advisory Committee and authorize staff to prepare and submit the County's public transit grant applications to the Oregon Department of Transportation DEBONE: Second VOTE: ADAIR: Yes DEBONE: Yes HENDERSON: Chair votes yes. Motion Carried 6. Harper Bridge Discussion Commissioner DeBone has requested this item come back for discussion and supports safety improvements at Harper Bridge. Commissioner Henderson recapped the last discussion. Road Department Director Chris Doty was present and reported on the time commitment and the improvements could be done before the 4th of July if directed to proceed now. Mr. Doty explained BOCC WORK SESSION MARCH 13, 2019 PAGE 3 OF 7 an easement is needed from Crosswater for a slope and for utilities. Commissioner Henderson spoke on ideas of closing the area down or other options. Commissioner Adair reported she spoke with the Forest Service. County Administrator Anderson explained a partnership with law enforcement is needed which would need an agreement and compensation. Commissioner Adair inquired on the speed limit posting. Mr. Doty explained the signs and rumble strips are in place from Memorial Day to Labor Day the speed limit is decreased. Commissioner Adair would hope for a safe solution and an even further decreased speed limit. Mr. Doty will research whether variable speed limits are an allowable option for that stretch of road. Sheriff Shane Nelson joined the discussion. Sheriff Nelson trusts Mr. Doty's recommendation and stated law enforcement will be a partner in this effort. Sheriff Nelson offered his staff coverage once this plan is in place. Sheriff Nelson commented on the congestion in the area. Sheriff Nelson stated a target team deployment will be a part of the Deschutes County Sheriff's Office routine. County Administrator Anderson explained the expense of the project improvement is already included in the budget. Mr. Doty is ready to start the procurement process. Commissioner Henderson supports moving forward with the easement process and contractors bid for the safety improvements to Harper Bridge parking. Commissioner DeBone supports the paving option. Commissioner Henderson commented it would cost an extra $100,000 for the paving. Commissioner DeBone explained this project has been discussed for years. Commissioner Adair asked Mr. Doty in his opinion which option would be safer. Commissioner Adair is taking recommendation from Mr. Doty and wants to make the area safe. IIIIIIII]QUI9611 VOTE: Move approval of the paving option with parking on both sides Second ADAI R: Yes DEBONE: Yes HENDERSON: Chair votes no. Motion Carried BOCC WORK SESSION MARCH 13, 2019 PAGE 4 OF 7 7. 911 Operational Oversight Discussion Commissioner Henderson reported this item is in preparation for the User Board meeting next week. Commissioner DeBone feels this is the time to build the relationship for the future. Sheriff Shane Nelson, Bend Police Chief Jim Porter, 911 Operations Sara Crosswhite, and Project Manager Rick Allen joined the discussion. Sheriff Nelson states he had questions on the report including who was involved. The tower site of Jackpine Ridge was discussed and the information provided in the report is unclear. Will Mullins joined the discussion and reported on the 3.0 verses 3.4 systems. Sheriff Nelson also commented on the purported cost estimate for fixing the old analog system. Discussion held on a presentation of the report to the User Board. Commissioner DeBone made a suggestion for the agendas of the User Board to include estimated time assignments. Commissioner Henderson also suggested possibly changing the position that chairs the User Board. Commissioner Henderson explained he had never heard any reports that the old analog system was failing. Sheriff Nelson confirmed that the old system was failing and reported that the new system is working far better. Chief Porter stated if strong leadership and technical expertise were involved from the beginning it would have had a different outcome. Chief Porter and Sheriff Nelson commented the addition of the Overturf tower site in the beginning would have been a benefit. It was noted that the Harris contract Statement of Work was not provided to or reviewed by County Legal until after the performance issues became public. Mr. Doyle confirmed in his opinion that the warranty provision in the contract and the warranty work performed by Harris have been beneficial. Tower locations were discussed. Sheriff Nelson feels we have good leadership now and are pointed in the right direction. Sheriff Nelson feels the 911 Director should have oversight by only one person. Chief Porter agrees. BOCC WORK SESSION MARCH 13, 2019 PAGE 5 OF 7 The executive summary of the Trott After Action Report will be presented to the User Board on Tuesday. Commissioner DeBone suggested creating a two slide presentation. Ms. Crosswhite will create the presentation. Commissioner Henderson recommended that the User Board meetings be chaired by a designated position (perhaps a County Commissioner) and not by the Director. County Administrator Anderson suggested communicating that thought/suggestion at the User Board Meeting. Commissioner Henderson commented on the ADCOMM Engineering services and their continued involvement and questioned how much they had cost. OTHER ITEMS: None were presented COMMISSIONER UPDATES: • Commissioner Henderson met with the Irrigation District and spoke with Peter Gutowsky on the habitat plan • Commissioner Henderson met with Alison Green, Cohesive Strategy Coordinator regarding suggestions for the steering committee. • Commissioner Henderson met with Dave Hunnicutt of OIA regarding Marijuana regulations. • Commissioner Adair attended the COIC meeting and commented on the green cab company insurance matter. Commissioner Adair will be missing the Tumalo meeting this evening • Commissioner DeBone met with the DA and will help him execute a plan to find additional space in his building including the top floor that is currently being used for paper document storage. Commissioner Adair suggested having a person scan documents. Commissioner Henderson commented the District Attorney has never informed the Board directly that his office is in crisis. BOCC WORK SESSION MARCH 13, 2019 PAGE 6 OF 7 EXECUTIVE SESSION: At the time of 5:30 pm, the Board went into Executive Session under ORS 192.660 (2) (h) Litigation. The Board came out of Executive Session at 5:58 p.m. At the time of 5:59 p.m., the Board went into Executive Session under ORS 192.660 (2) (a) to consider an offer of employment. The Board came out of Executive Session at 6:18 p.m. Being no further items to come before the Board, the meeting was adjourned at 6:18 p.m. DATED this Day of— 2019 for the Deschutes County Board of Commissioners ANTHONY DEBONE, COMMISSIONER BOCC WORK SESSION MARCH 13, 2019 PAGE 7 OF 7 -� E S COG o A Y Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 - www.deschutes.org BOCC MEETING AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 PM, WEDNESDAY, MARCH 13, 2019 Allen Conference Room - Deschutes Services Building, 2ND Floor - 1300 NW Wall Street - Bend This meeting is open to the public, and allows 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. Item start times are estimated and subject to change without notice. CALL TO ORDER ACTION ITEMS 1. 1:30 PM Update on Oregon's Smoke Management Plan - Ed Keith, Forester 2. 1:45 PM Consideration of Request to Submit SAMHSA SOC Grant Application - Elizabeth Holden, Pulled 3. 2:00 PM Environmental Health Update and Consideration of General Fund Request - Thomas Kuhn, Health Services 4. 2:15 PM Investment Policy Update - Wayne Lowry, Finance Director/Treasurer 5. 2:30 PM 2019-21 Public Transit Grant Recommendations -Judith Ure, Management Analyst 6. 3:00 PM Harper Bridge Discussion 7. 3:30 PM 911 Operational Oversight Discussion Board of Commissioners BOCC Meeting Agenda Wednesday, March 13, 2019 Page 1 of 2 COMMISSIONER'S UPDATES EXECUTIVE SESSION 4:00 PM Executive Session under ORS 192.660 (2) (e) Real Property Negotiations & ORS 192.660 (2) (h) Litigation OTHER ITEMS These can be any items not included on the agenda that the Commissioners wish to discuss as part of the meeting, pursuant to ORS 192.640. At any time during the meeting, an executive session could be called to address issues relating to ORS 192.660(2)(e), real property negotiations; ORS 192.660(2)(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 media. 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. If you have questions, please call (541) 388-6572. Board of Commissioners BOCC Meeting Agenda Wednesday, March 13, 2019 Page 2 of 2 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 - Fax (541) 385-3202 - https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners BOCC Wednesday Afternoon Meeting of March 13, 2019 DATE: March 6, 2019 FROM: Ed Keith, Natural Resources - Forestry, 541-322-7117 TITLE OF AGENDA ITEM: Update on Oregon's Smoke Management Plan RECOMMENDATION & ACTION REQUESTED: Provide staff input related to the Community Response Plan ATTENDANCE: Ed Keith, Forester; Heather Kaisner, Health Services SUMMARY: Changes to Oregon's Smoke Management Plan that regulate smoke from prescribed fires went into effect March 1 and contain a provision that communities who experience smoke from prescribed fire create a Community Response Plan. More details are in the attached memo. S'C'E S To: Deschutes County Board of Commissioners From: Ed Keith, County Forester Date: March 6, 2019 Re: Oregon Smoke Management Plan New smoke management rules that regulate smoke from prescribed fires went into effect March 1. The rules include a new provision recommending that Smoke Sensitive Receptor Areas (SSRAs) listed in the plan (Bend and Redmond are SSRA's within Deschutes County) who experience repeated smoke from prescribed fire develop a Community Response Plan, Those SSRA communities who have a plan approved by the state have slightly more latitude to execute prescribed burns. This would primarily apply to burns next to communities where smoke may have short term impacts and where prescribed fire is most effective in providing strategic areas of protection from wildfire impacts to the community. This provision of the rules was expected and in anticipation partners* started working together in 2017 to develop messages and communication strategies that would meet the requirements of the Community Response Plan. Much of the messaging that was developed to proactively communicate with the community is encapsulated on the centraloregonfire.org website. Press releases and direct electronic communication with interested parties also convey this coordinated messaging. Because Bend is one of the SSRA's in Oregon who most commonly experience short term smoke from prescribed fires there is a need to submit a Community Response Plan to the State and request an exemption from the one hour threshold for air quality so that prescribed fire that is planned to protect Bend and surrounding rural communities can continue to move forward. Submitting a formalized Community Response Plan appears to be fairly straightforward because of processes recently put in place. Partners have expressed a desire to submit a plan to the State as early as this spring. According to the new rules the Community Response Plan is coordinated through the local public health authority and submitted by the community's local governing body in coordination with the Board of Commissioners. Staff seeks Board input as we move forward with partners to submit a plan. An excerpt of the applicable rule text (629-048-0180 (2) & (3)) related to this process is attached. *Partners participating in this effort include: • Central Oregon Fire Management Service • City of Bend Fire Department • Department of Environmental Quality • Deschutes National Forest • Deschutes County Forester • Deschutes County Health Services • Deschutes County Public Health Advisory Board • The Nature Conservancy • Oregon Department of Forestry • Oregon Health Authority • Project Wildfire 61150 SE 27"' Street Bend, Oregon 97702 (541) 322-7117 ed.keith@deschutes.org www.deschutes.org 2019 Revision to Oregon's Smoke Management Plan Communication, Community Response Plans, and Exemption Requests OAR 629-048-0180 (2): ON and DEQ recommend communities that are SSRAs and have experienced repeated smoke incidents and/or intrusions in the past collaboratively develop a community response plan and program. (a) The information in the plan and program includes, but is not limited to the following: (A) A description of populations in an SSRA community that are vulnerable to the health effects of short-term smoke; (B) Adequate means by which the public, especially vulnerable populations in the SSRA community, will be notified in a clear and reliable way of anticipated smoke impacts in a timely manner; (C) Adequate options for protecting the health of vulnerable populations (or helping such populations to protect themselves) from short-term exposure to smoke; and (D) A plan and program for communications between the entities that conduct prescribed fire, the local public health authority, and the community's public and vulnerable populations who may be impacted by smoke. (b) The community response plan should be coordinated through the local public health authority but developed collaboratively with members or representatives of vulnerable populations, community officials, representatives from entities that have responsibility for prescribed fire, forest restoration collaborative groups, local businesses, and other interested members of the public. (3): SSRA communities that develop and implement such a plan that meets the criteria outlined in (2) may request an exemption from the one-hour average smoke intrusion threshold. An exemption to the one-hour smoke intrusion threshold means that smoke impacts that surpass the one-hour threshold, but not the 24-hour average threshold, shall be deemed smoke incidents, not smoke intrusions, in the SSRA. (a) The request for exemption must be made by the community's local governing body in coordination with their County Board of Commissioners. (b) The request for exemption will be considered for approval by ON and DEQ under the advisement of Oregon Health Authority. The exemption shall be granted within 30 days of submission unless ON and DEQ agree that the plan does not comply with the criteria in (2). (c) If ON and DEQ determine the plan does not comply with the above criteria, they shall, within 30 days of submission, provide a written explanation of the reasons for denial. (d) ON and DEQ may revoke the exemption if there are repeated (three or more in five years) smoke intrusions that exceed the 24-hour average threshold or prescribed burning contributes to two or more NAAQS exceedances. (e) ON and DEQ will revoke the exemption if the SSRA is within one exceedance of a NAAQS violation. SSRAs that are in a NAAQS violation (nonattainment) will not be eligible for an exemption. (f) In addition, SSRAs that have received an exemption must demonstrate they are implementing their community response plan through an annual report provided by the local health authority detailing: (A) Compliance with requirements in (2); (B) A summary of methods used to communicate to the public and vulnerable populations; (C) A log of dates and times the community initiated their response plan; (D) A record of local meetings to discuss or update the community response plan. (g) An SSRA that has their exemption revoked may reapply for the exemption after a year provided all conditions stated in (3) have been met. E S 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 BOCC Wednesday Afternoon Meeting of March 13, 2019 DATE: March 7, 2019 FROM: Elizabeth Holden, Health Services, TITLE OF AGENDA ITEM: Consideration of Request to Submit SAMHSA SOC Grant Application RECOMMENDATION & ACTION REQUESTED: Staff request approval to apply for the SAMHSA System of Care (SOC) grant. ATTENDANCE: Health Services staff: Elizabeth Renteria Holden, Intensive Youth Services Program Manager; Janice Garceau, Behavioral Health Deputy Director SUMMARY: The Substance Abuse and Mental Health Services Administration (SAMHSA) is accepting applications for Grants for Expansion and Sustainability of the Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (System of Care [SOC] Expansion and Sustainability Grants). The purpose of this program is to improve the mental health outcomes for children and youth (from birth through age 21) with serious emotional disturbance, and their families. This program will support the implementation, expansion, and integration of the SOC approach by creating sustainable infrastructure and services that are required as part of the Comprehensive Community Mental Health Services for Children and their Families Program (also known as the Children's Mental Health Initiative or CMHI). SAMHSA plans to issue 6-24 grants of up to $3,000,000 per year for up to four years. These grant funds would help Deschutes County Health Services' Intensive Youth Services program meet our contractual requirements for standing up the System of Care governance initiative. The additional FTE would enable us to meet fidelity requirements for Wraparound Fidelity staff ratios, and for the required integration of first episode psychosis and young adult services into the system of care. The key personnel for this program will be the local Project Director and the Lead Family Coordinator. These positions require prior approval from SAMHSA after a review of staff credentials and job descriptions. Six additional FTE are proposed to support delivery of Wraparound services and data collection and analysis. Grant funds would also support covering some building costs, the purchase of two vehicles, and contract dollars for youth crisis services provided by current contractor. �-� Es Deschutes County Health Services GRANT APPLICATION REQUEST Please answer the following questions: Official Grant Title: Grants for Expansion and Sustainability of the Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances Source of Grant Funds: SAMHSA, Center for Mental Health Services Funding Amount and Duration (include From $1,000,000 per year available for non -state amount per year if multiple years): government entities for four total grant years. Total of $4,000,000 for the entire grant period. Application Due Date: Aril 19, 2019 FTE Required and Cost of FTE: The grant will fund these additional positions: • 1.0 FTE BHS II w/lead pay as Project Director • 1.0 FTE BHS I Lead Family Care Coordinator • 1.0 FTE Clinical Information Systems Analyst • 2.0 FTE BHS I Care Coordinators • 3.0 FTE Peer Support Specialist Staff Responsible: Elizabeth Renteria Holden Matching Requirements? N Yes ❑ No If Yes, N in-kind or ❑cash? Amount: Recipients are required to provide the statutory match requirements ($3 federal to $1 non-federal in years 1-3; $1 federal to $1 non- federal in year 4). Matching resources may be in cash or in- kind, including facilities, equipment, or services and must be derived from non-federal sources (e.g., state or sub -state non-federal revenues, foundation grants); existing FTE can be contributed as in-kind match. Program intends to apply existing program salaries, as in-kind match. Contract or MOU Required? N Yes ❑ No Does grant allow for admin fee? N Yes ❑ No If Yes, amount: No more than 20% of the total grant award may be used for data collection, erformance measurement, and performance assessment. Expedited Director approval? ❑ Yes N No If Yes, attach copy of grant opportunity notification. 1. How does this grant opportunity align with priorities in the Health Services Strategic Plan, the Regional Health Improvement Plan or an emerging need? This grant would help us meet our contractual requirements for standing up the System of Care (SOC) governance initiative. The additional FTE would enable us to meet fidelity requirements for Wraparound Fidelity staff ratios, and for the required integration of first episode psychosis and young adult services into the system of care. Rev. 11/19/2018 Page 1 of 3 2. Briefly summarize what work the grant is intended to accomplish. SAMHSA is accepting applications for Grants for Expansion and Sustainability of the Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (System of Care (SOC) Expansion and Sustainability Grants). The purpose of this program is to improve the mental health outcomes for children and youth (from birth through age 21) with serious emotional disturbance, and their families. This program will support the implementation, expansion, and integration of the SOC approach by creating sustainable infrastructure and services that are required as part of the Comprehensive Community Mental Health Services for Children and their Families Program (also known as the Children's Mental Health Initiative or CMHI). SAMHSA plans to issue 6-24 grants of up to $3,000,000 per year for up to four years. 3. Describe the science or evidence base that supports delivering the work the grant is intended to accomplish. The SOC Expansion and Sustainability Grants are authorized under Sections 561-565 of the Public Health Service Act, as amended, and Section 10001 of the 21St Century Cures Act. This announcement addresses Healthy People 2020 Mental Health and Mental Disorders Topic Area HP 2020-MHMD. This program aligns with SAMHSA's Strategic Plan Priority #2 "Addressing Serious Mental Illness and Serious Emotional Disturbance". 4. Does the work the grant is intended to accomplish require ethics review? If so, what is the regulating authority and who will do the work? No ethics review is required. 5. Summarize the cost of doing the work the grant is intended to accomplish (include costs of personnel, equipment, materials and services, travel/training, etc., as applicable, using the grant calculator tool [to be developed]). The key personnel for this program will be the local Project Director and the Lead Family Coordinator. These positions require prior approval from SAMHSA after a review of staff credentials and job descriptions. Six additional FTE are proposed to support delivery of Wraparound services and data collection and analysis. Grant funds would also support covering some building costs, the purchase of two vehicles, and contract dollars for youth crisis services provided by current contractor. Rev. 11/19/2018 Page 2 of 3 D Administrative su orts re uired check all that a I : ® Compliance oversight ® Contract ® Data analysis: Is the data ❑ already collected? OR ❑ new to us? Where does the data live? dick or tap here to enter text. ® EHR ® Fiscal oversight and/or reporting ® Operations (building, vehicles, etc.) ® Reporting: What: GPRA and Performance How often: At least annually © Other, please describe: Liaison with HR to meet personnel requirements and assistance with grant application completion To be completed by Director: Final review of grant application materials prior to submittal will be done by: ❑ Deputy Director ❑ Director Deputy Director Approval Director Approval ❑ Yes ❑ No Date & Initials: ❑ Yes ❑ No Date & Initials: Rev. 11/19/2018 Page 3 of 3 a 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 BOCC Wednesday Afternoon Meeting of March 13, 2019 DATE: March 7, 2019 FROM: Thomas Kuhn, Health Services, TITLE OF AGENDA ITEM: Environmental Health Update and Consideration of General Fund Request RECOMMENDATION & ACTION REQUESTED: To provide an update to the Commissioners on the Environmental Health Program, as well as request $57,020 in County General Funds that the program will not be able to recoup through increased fee revenues and licensed facilities in FY 2019. ATTENDANCE: Health Services Staff: Eric Mone, Environmental Health Supervisor; Tom Kuhn, Community Health Program Manager SUMMARY: On June 13, 2018, the Environmental Health (EH) program requested a 12% fee increase. This request was not approved by the Deschutes Board of County Commissioners (BoCC) as it would place Deschutes among the highest fees in the state. The BoCC did approve a 6% fee increase, and at that time it was thought that the 6% increase and booming food and tourist industry might make up the shortfall of approximately $60,000 needed to balance the EH Budget (the 12% fee increase would have balanced the budget). It was recommended at the June 13 Work Session that this be re-examined later in FY 2019 to determine whether the need had been lessened (see June 13, 2018, Work Session Minutes, top of page 2). While fee revenues have been trending well, it is estimated that the program will have a deficit of $57,020 by the end of FY 2019. • 11 0 •' m • 0 • 11 C9 M -o CO.., \� � � 2 < . \ : \ \ 2� \� .� a. � } 0> , y— 0 ¥} ~ ?r °tj ¥ < : \ \ d \ * +¥ ® %� «; \ � .. : »d < .a :a dd \ .�_ :�1 N Ll :3 LL G D cLL G O N D LL 75 O r- d' N CL D V) LL G � Q0 C 66 T— C) N N U) m roU u U = Loro 4w cap U) 0 CL :W. v 6 M C, E 0 :�- CL 2 ro 0 (n Ln �n Lo 0 Now It 0 E u) m " s 41 ' 1 • • 1 WD 0 •l • 77P 0 • • • ui A 1 1 • 1 • D 0 • t !. •' LLA1IA 1 • Lm t, �' �' t 1' i o • • • LU i::', N 01 0r0 ^Lli O O I� u m LI) � 01 Ln O o C O N r -i N OO o0 ° � NON rncm qj)- qj)- 00 LL a� co +, o ca U bA 4"' C � aJ bLL aj m w(7 JN�Y Js3 a 0 u m t r • • r - it • 296! Number of regulatory inspections in 2018 Licensed restaurants in Deschutes County Percent increase in licensed facilities from 2014 to 2018 Public Health concerns submitted in 2018 Annual inspections of tourist facilities Conducts regulatory inspections and prevention education at licensed facilities to protect the public from illness What This Program Provides To Our Community ® Conducts inspections of licensed facilities (including: restaurants, food trucks, childcare facilities, hotels, motels, public pools & spas, water systems, and school lunch programs) ® Responds to public inquiries related to foodborne illness, food service complaints, and other environmental health concerns ® Provides technical assistance to businesses and the public on environmental hazards including: air pollution, wastewater disposal, drinking water sampling, animal bites, and more ® Conducts nationally certified ServSafe Food Manager Training courses to foodservice managers as well as Food Handler trainings ® Regulate and enforce State Drinking Water Laws on 175 Deschutes County Public Water Systems, monitoring for contamination, educating on boil water alerts, and performing field surveys on wells How This Program Benefits Our Community ® Reduces the risk of food and waterborne illness in our communities by conducting approximately 3,000 regulatory inspections at over 1,800 licensed facilities in Deschutes County each year ® Develops strong community partnerships with local businesses, cities, county, state, and federal agencies to facilitate: e Safe drinking water in Deschutes County ® Safe opening of restaurants in a timely manner ® Clean public pools, spas, and tourist facilities �v1ES CO BOARD OF V i COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541) 388-6570 1:30 PM WORK SESSION MINUTES WEDNESDAY, June 13, 2018 BARNES SAWYER ROOMS Present were Commissioners Tammy Baney, and Phil Henderson. Commissioner Anthony DeBone was present at 1:41 p.m. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; David Doyle, County Counsel; and Sharon Keith, Board Executive Assistant. Several citizens and representatives of the media were in attendance. CALL TO ORDER: Vice Chair Henderson called the meeting to order at 1:34 p.m. ACTION ITEMS This portion of the meeting was audio and video recorded. 1. 2019 Requested Fee Schedule: Christina Partain, Finance Department presented the item as a follow-up to the May 19th Work Session and Budget Hearing Week. The District Attorneys Office and Fair & Expo Center fee schedule requests were reviewed. The Community Development Department fee schedule changes were outlined through a staff memo. Commissioner Baney spoke of the challenges of economic times and the staff responses to great services. Commissioner Henderson commented that the CDD fee increase is high. The application BOCC WORK SESSION JUNE 13, 2018 PAGE 1 OF 6 fee for marijuana production application did increase due to the amount of staff time required. The Health Services fee schedule changes were reviewed in the Public Health Services department highlighting the Environmental Health fees. Commissioner Henderson noted the fee increase for food service would place Deschutes County as 2nd in the state. Discussion held on a possible general fund investment and phasing. The proposal is an increase of 12% and the Board supported 6% at this time. County Administrator Anderson suggests the Board could re-examine during the course of the year. 2. Marijuana Regulatory Assessment / Preliminary Amendments Community Development Department staff Peter Gutowsky, Nick Lelack, and Tanya Saltzman presented. To date, staff has not received a formal response from the Oregon Health Authority. The Oregon Water Resources Department (OWRD) responded and noted the challenges of tracking water resource use. They examined the greater Alfalfa area and acknowledged the levels of metered sites. Commissioner Baney inquired if the medical marijuana grows have water rights and should be inquired of OWRD as well. Mr. Gutowsky reviewed the preliminary amendments and explained a Measure 56 notice is required by state law to communicate to property owners that Deschutes County's amendments may limit uses on their property. Discussion held on distance of affected properties requiring general notices. Commissioner DeBone spoke on a public hearing option regarding the amendments. The Planning Commission could hold a joint meeting with the Board as well. Suggestion made for a Work Session to be held inviting the Planning Commission. The Board acknowledged the requirement for a Measure 56 notice. The M56 notice will cost approximately $3000. A 35 -day notice will need to be prepared and sent to DLCD, and a burden of proof will need to be prepared by staff. A public hearing date in August could be arranged. BOCC WORK SESSION JUNE 13, 2018 PAGE 2 OF 6 E S CO 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 BOCC Wednesday Afternoon Meeting of March 13, 2019 DATE: March 6, 2019 FROM: Wayne Lowry, Finance, 541-388-6559 TITLE OF AGENDA ITEM: Investment Policy Update RECOMMENDATION & ACTION REQUESTED: This will be a discussion of recommended changes to our County Investment Policy. Once the Board is comfortable with the suggested changes, we will place this item on a Board business agenda for approval. ATTENDANCE: Wayne Lowry, Finance Director/Treasurer SUMMARY: The County is required to have its investment policy approved by the Governing body each year. The policy was last approved by the Board in December 2017. The policy has not changed since it's original adoption in 2013. Given our experience investing county funds over the past five years, I am suggesting a few changes to the policy to clarify ratings requirements and how they will be applied to our investment portfolio decisions. The attached memo describes each suggested change and its rationale. Also attached is a redlined investment policy with the changes noted. Changes to the investment policy normally are required to be reviewed by the Oregon Short Term Fund Board for comment. Due to the limited changes being suggested to the policy, the staff at the StateTreasurer's office stated that a review by the Short Term Fund Board was not required. March 7, 2019 To: Board of County Commissioners From: Wayne Lowry, Finance Director/Treasurer Subject: Investment Policy Proposed Changes The current investment policy was originally reviewed by the Investment Advisory Committee on October 24, 2013 and approved by the Board of County Commissioners on December 11, 2013. It has been submitted to the Board annually since then and was last approved by the Board on December 27, 2017. No changes have been made to the policy since it was originally approved in 2013. The following substantive changes are recommended given our experience investing over the past five years. These changes were presented to the Investment Advisory Committee at their January 10, 2019 meeting and were approved by the Committee. The redlined investment policy is attached to this document. Investment Parameters 1.ii — Change the number of ratings required from two to one. Specify that at least one such rating from the rating agencies must meet the minimum rating requirements in the ratings table. The statutes do not require two ratings making our policy more restrictive than the statutes. In addition, many municipal issuers only get rated by one rating agency so our policy prevents us from buying certain municipal bonds. The County currently owns three municipal bonds that were inadvertently purchased in 2016 and 2017 that had only one rating. The rating on each of these bonds met the minimum rating requirement of AA. It is not clear from our current policy whether a security must have the minimum rating from each rating agency that provides a rating or from just one of the rating agencies. We have interpreted this to require the minimum rating from just one rating agency. This change will clarify our current practice in the policy. Investment Parameters 1.11i — Clarify that the portfolio's minimum weighted average credit rating shall be Aa2/AA/AA. Ratings for each rating agency are slightly different. Moody's ratings are Aa1, Aa2 and Aa3 with Aa1 being the highest and Aa3 being the lowest in the AA category. Both S&P and Fitch ratings are AA+, AA, AA- with AA+ being the highest and AA - being the lowest of the AA category. The adjustment to the Moody's rating requirement ensures that all three average credit ratings mean the mid -point in the AA category. In addition, language is added that specifies the way we will evaluate ratings as follows: For purposes of evaluating the average credit rating for the portfolio, the County will use the single rating for those securities that only have one rating, the lower of two ratings for those securities that have two ratings and the middle rating for those securities that have three ratings. Investment Parameters 1. iv— Two changes here. The first is to clarify the distinction between Oregon Corporate issuers and those outside of Oregon. The second is to clarify the minimum ratings for Oregon Corporate issues as A2/A/A and to clarify the minimum ratings for outside Oregon corporate issues and all Municipal issues as Aa3/AA-/AA-. Although our investment policy assigns a minimum rating for all corporate issues of A, the statutes make a distinction between corporate issues that are Oregon based and those outside of Oregon. Oregon based corporate bond issues require a minimum rating of A while those outside of Oregon require AA. Our investment portfolio is compliant with the statues in spite of the policy. This change would conform our current policy to the statutes by clarifying the difference in rating requirements between Oregon based issuers and those outside Oregon. In addition, the second change would clarify the minimum ratings for Oregon corporate issues as A2 for Moody's and A for both S&P and Fitch. It would also specify the minimum ratings for outside Oregon corporate issues and all municipal issues as Aa3 for Moody's and AA- for both S&P and Fitch. Our interpretation up to this point has been to take a AA rating as meeting the minimum requirement regardless of the 1,2 or 3 for Moody's and the + or — for S&P and Fitch. We would like the policy reflect our current practice. There are several other minor language changes that have no significant effect on the investment policy that are noted in the draft. �2 { Deschutes County Administrative Policy No. F-10 Effective Date: January 7, 2008 Revised Date: June 24, 2009 Revised Date: September 20, 2012 Revised Date: December 11, 2013 Revised Date: December 15, 2014 Revised Date: December 17, 2015 Revised Date: December 27, 2017 INVESTMENT POLICY GUIDELINES PURPOSE This Investment Policy defines the parameters within which funds are to be invested by Deschutes County. Deschutes County's purpose is to provide County Level Services for a large portion of Central Oregon. This policy also formalizes the framework, pursuant to ORS -294.135, for Deschutes County's investment activities to ensure effective and judicious management of funds within the scope of this policy. These guidelines are intended to be broad enough to allow designated investment staff to function properly within the parameters of responsibility and authority, yet specific enough to adequately safeguard the investment assets. GOVERNING AUTHORITY Deschutes County's investment program shall be operated in conformance with Oregon Revised Statutes and applicable Federal Law. Specifically, this investment policy is written in conformance with ORS 294.035; 294.040; 294.052; 294.135; 294.145; and 294.810. All funds within the scope of this policy are subject to Laws`hese Statutes and regulations established by the State of Oregon. Any revisions or extensions of these sections of the ORS shall be assumed to be part of this Investment Policy immediately upon being enacted. SCOPE This policy applies to activities of Deschutes County with regard to investing the financial assets of all County funds including County Service Districts and Trust Funds. Investments of employees' retirement funds, deferred compensation plans, and other funds are not covered by this policy. The amount of funds falling within the scope of this policy over the next three years is expected to range between $99160 million and $42730 million. GENERAL OBJECTIVES The primary objectives, in priority order, of investment activities shall be: 1. Preservation of Invested Capital Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The goal is to mitigate credit risk and interest rate risk. Policy U-10, Investment Policy Guidelines Page I of 13 Liquidity The investment portfolio shall remain sufficiently liquid to meet all reasonably anticipated operating requirements. Furthermore, the portfolio should consist largely of securities with active secondary or resale markets. A portion of the portfolio also may be placed in the Oregon Short Term Fund which offers next -day liquidity. Where possible and prudent, the portfolio should be structured so that investments mature concurrent with anticipated demands. 3. Return The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into consideration the safety and liquidity needs of the portfolio. Although return consists of both principal return (gains and losses due to market value fluctuations) and income return (yield), this policy discourages active trading and turnover of investments. Investments should generally be held to maturity. STANDARDS OF CARE 1. Prudence. The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy, and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported and appropriate action is taken to control adverse developments within a timely fashion as defined in this policy. The "prudent person" standard states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." 2. Ethics and Conflicts of Interest. Officers and employees involved in the investment process shall refrain from personal activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. Disclosure shall be made to the governing body. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the County. Officers and employees shall, at all times, comply with the State of Oregon Government Standards and Practices code of ethics set forth in ORS Chapter 244. Policy #F-10, lnvcshnent Policy Guidelines Page 2 of 13 3. Delegation of Authority and Responsibilities Governing Body The Board of County Commissioners will retain ultimate fiduciary responsibility for invested funds. The governing body will receive reports, pursuant to, and with sufficient detail to comply with ORS 294.085 and 294.155. Delegation of Authority Authority to manage investments within the scope of this policy and operate the investment program in accordance with established written procedures and internal controls is granted to the Finance Director/Treasurer, hereinafter referred to as Investment Officer, and derived from the following: ORS 294.035 to 294.053, 294.125 to 294.145, and 294.810. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officer. The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. All participants in the investment process shall seek to act responsibly as custodians of the public trust. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and supporting procedures. iii. Investment Committee The Deschutes County Board of County Commissioners established an investment advisory committee on April 19, 1995 by resolution 95-12520 to provide guidance to the Investment Officer and monitor investment policy compliance. iv. Investment Adviser The Investment Officer may engage the services of one or more external investment managers to assist in the management of the County's investment portfolio in a manner consistent with this investment policy. Investment advisers may be hired on a non -discretionary basis. All investment transactions by approved investment advisers must be pre -approved in writing by the Investment Officer and compliant with this Investment Policy. If the Investment Officer hires an investment adviser to provide investment management services, the adviser is authorized to transact with its direct dealer relationships on behalf of Deschutes County. TRANSACTION COUNTERPARTIES INVESTMENT ADVISERS AND DEPOSITORIES 1. Broker/Dealers The Investment Officer shall determine which broker/dealer firms and registered representatives are authorized for the purposes of investing funds within the scope of Policy U-10, Investment Policy Guidelines Page 3 of 13 this investment policy. A list will be maintained of approved broker/dealer firms and affiliated registered representatives. The following minimum criteria must be met prior to authorizing investment transactions. The Investment Officer may impose more stringent criteria. L Broker/Dealer firms must meet the following minimum criteria: A. Be registered with the Securities and Exchange Commission (SEC); B. Be registered with the Financial Industry Regulatory Authority (FINRA). C. Provide most recent audited financials. D. Provide FINRA Focus Report filings. ii. Approved broker/dealer employees who execute transactions with Deschutes County must meet the following minimum criteria: A. Be a registered representative with the Financial Industry Regulatory Authority (FINRA); B. Be licensed by the state of Oregon; C. Provide certification (in writing) of having read; understood; and agreed to comply with the most current version of this investment policy. iii. Periodic (at least annual) review of all authorized broker/dealers and their respective authorized registered representatives will be conducted by the Investment Officer. Factors to consider would be: A. Pending investigations by securities regulators. B. Significant changes in net capital. C. Pending customer arbitration cases. D. Regulatory enforcement actions. 2. Investment Advisers A list will be maintained of approved advisers selected by conducting a process of due diligence. i. The following items are required for all approved Investment Advisers: A. The investment adviser firm must be registered with the Securities and Exchange Commission (SEC) or licensed by the state of Oregon; (Note: Investment adviser firms with assets under management > $100 million must be registered with the SEC, otherwise the firm must be licensed by the state of Oregon) B. All investment adviser firm representatives conducting investment transactions on behalf of Deschutes County must be registered representatives with FINRA; C. All investment adviser firm representatives conducting investment transactions on behalf of Deschutes County must be licensed by the state of Oregon; Policy #F-10, Investment Policy Guidelines Page 4 of 13 D. Certification, by all of the adviser representatives conducting investment transactions on behalf of Deschutes County, of having read, understood and agreed to comply with this investment policy. A periodic (at least annual) review of all authorized investment advisers will be conducted by the Investment Officer to determine their continued eligibility within the portfolio guidelines. Factors to consider would be: A. Pending investigations by securities regulators. B. Significant changes in net capital. C. Pending customer arbitration cases. p. Regulatory enforcement actions. 3. Depositories i. All financial institutions who desire to become depositories must be qualified Oregon Depositories pursuant to ORS Chapter 295. 4. Competitive Transactions L The Investment Officer shall obtain and document competitive bid information on all investments purchased or sold in the secondary market. Competitive bids or offers should be obtained, when possible, from at least three separate brokers/financial institutions or through the use of a nationally recognized trading platform. ii. In the instance of a security for which there is no readily available competitive bid or offering on the same specific issue, the Investment Officer shall document quotations for comparable or alternative securities. iii. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price. However, the Investment Officer is encouraged to document quotations on comparable securities. iv. If an investment adviser provides investment management services, the adviser must retain documentation of competitive pricing execution on each transaction and provide upon request. ADMINISTRATION AND OPERATIONS 1. Delivery vs. Payment All trades of marketable securities will be executed (cleared and settled) by delivery vs. payment (DVP) to ensure that securities are deposited in the -County's safekeeping institution prior to the release of funds. 2. Third -Party Safekeeping Securities will be held by an independent third -party safekeeping institution selected by the County. All securities will be evidenced by safekeeping receipts in the Policy #F-10, lnvesrment Policy Guidelines Page 5 of 13 - - IFormatted: Outline numbered + Level: 4 + Numbering Style: A, B, C, ... + Start at: 4 + Alignment: Left + Aligned at: 1.5 + Indent at: 1.75' County's -name. Upon request, the safekeeping institution shall make available a copy of its Statement on Standards for Attestation Engagements (SSAE) No. 16. 3. Internal Controls. The investment officer is responsible for establishing and maintaining an adequate internal control structure designed to reasonably assure that invested funds are invested within the parameters of this Investment policy and, protected from loss, theft or misuse. Specifics for the internal controls shall be documented in writing. The established control structure shall be reviewed and updated periodically by the Investment Officer. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management. The internal controls shall address the following points at a minimum: i. Compliance with Investment Policy H. Control of collusion. iii. Separation of transaction authority from accounting and record keeping. iv. Custodial safekeeping. v. Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. vi. Clear delegation of authority to subordinate staff members. vii. Confirmation of transactions for investments and wire transfers in written or digitally verifiable electronic form. viii.Dual authorizations of wire and automated clearing house (ACH) transfers ix. Staff training x. Review, maintenance and monitoring of security procedures both manual and automated. 4. An external auditor in conjunction with the annual County audit shall review compliance with Oregon state law and Deschutes County policies and procedures. SUITABLE AND AUTHORIZED INVESTMENTS 1. Permitted Investments The following investments are permitted pursuant to ORS 294.035, 294.040, and ORS 294.810. (Note: Permitted investments may be more restrictive than ORS 294.035 and 294.810). • US Treasury Obligations: U.S. Treasury and other government obligations that carry the full faith and credit guarantee of the United States for the timely payment ofprincipal and interest. • US Agency Obligations: Senior debenture obligations of US federal agencies and instrumentalities or U.S. government sponsored enterprises (GSE). • Oregon Short Term Fund. • Corporate Indebtedness Policy #F-10, Investment Policy Guidelines Page 6 of 13 1. Commercial Paper issued under the authority ofsection 3(a)2 or 3(a)3 of the Securities Act of 1933. 2. Corporate Bonds • Municipal Debt Bankers Acceptances Qualified Institution Time Deposits/Savings Accounts/Certificates of Deposit. 2. Approval of Permitted Investments If additional types of securities are considered for investment, per Oregon state statute they will not be eligible for investment until this Policy has been amended and the amended version adopted by Deschutes County. 3. Prohibited Investments 1. Private Placement or "144A" Securities Private placement or "144A" securities are not allowed. For purposes of the policy, SEC Rule 144A securities are defined to include commercial paper privately placed under section 4(a)(2) of the Securities Act of 1933. ii. US Agency Mortgage-backed Securities US agency mortgage-backed securities such as those securities issued by FNMA and FHLMC are not allowed. iii. Securities Lending The County shall not lend securities nor directly participate in a securities lending program. 4. Demand Deposits and Time Deposits I. All demand deposits and time deposits (Examples of time deposits are: certificates of deposit and savings accounts) shall be held in qualified Oregon depositories in accordance with ORS Chapter 295. ii. Demand deposits in qualified depository institutions are considered cash vehicles and not investments and are therefore outside the scope and restrictions of this policy. Pursuant to ORS 294.035(3)(d), time deposits, certificates of deposit and savings accounts are considered investments and within the scope of this policy. INVESTMENT PARAMETERS 1. Credit Risk Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. Credit risk will be mitigated by the following guidelines: i. Diversification It is the policy of Deschutes County to diversify its investments. Where appropriate, exposures will be limited by security type; maturity; issuance, issuer, and security type, Allowed security types and Investment exposure limitations are detailed in the table below. ii. Recognized Credit Ratings Investments must have a rating from at least tweone of the following Policy #F-10, Investment Policy Guidelines Page 7 of 13 nationally recognized statistical ratings organizations (NRSRO): Moody's Investors Service; Standard & Poor's; and Fitch Ratings Service as detailed in the table below. At least one such rating must meet the minimum rating requirements shown in the table below. Ratings used to apply the guidelines below should be investment level ratings and not issuer level ratings. iii. Portfolio Average Credit -Rating The minimum weighted average credit rating of the portfolio's rated investments shall be Aa2/AA/AA by Moody's Investors Service; Standard & Poor's; and Fitch Ratings Service respectively. For purposes of evaluating the , - Formatted: Forrt: rimes New Roman average credit rating for the portfolio the County will use the single rating for those securities that only have one rating, the lower of two ratings for those securities that have two ratings and the middle rating for those securities that have three ratings. iv. Exposure Constraints and Minimum Investment Credit Ratings. The following table limits exposures among investments permitted by this policy. US Treasury Obligations 100% None US Agency Securities 100% Per Agency (Senior Obligations 33% Only) Oregon Short Term Fund Maximum - 25% allowed per ORS Corporate Debt (Total) 294.810 Bankers' Acceptances 25%(') Al+/Pl/F1+ Time Deposits/Savings 50% - Accounts/Certificates of Deposit(2) Per Institution 25% Corporate Debt (Total) 25%(3) - Corporate Commercial Paper o (a) 5.0% Per Issuer Al/PI/F1 Corporate Bonds Per Oregon Issuers 5.0%(4) A2/A/A All Other Issuers 5.0% Aa3/AA-/AA- Municipal Debt 25% Municipal Bonds (')25% Maximum per ORS 294.035(D) (z)As authorized by ORS 294.035(3)(d) (3)35% Maximum per ORS 294.035(D) (4)5 % Maximum per ORS 294.035 (D) Policy #F-10, Investment Policy Guidelines Page 8 of 13 Formatted: Font: 8 pt Formatted: Font: 20 pt (4)(5) Defined inORS.035(i)(C) v. Restriction on Issuers With Prior Default History Per ORS 294.040, the bonds of issuers listed in ORS 294.035 (3)(a) to (c) may be purchased only if there has been no default in payment of either the principal of or the interest on the obligations of the issuing county, port, school district or city, for a period of five years next preceding the date of the investment. 2. Liquidity Risk Liquidity risk is the risk that an investment may not be easily marketable or redeemable. The following strategies will be employed to mitigate liquidity risks: i. The value of at least 10% of funds available for investing or three months of budgeted operating expenditures will be invested in the Oregon Short Term Fund, with a qualified depository institution, or investments maturing in less than 30days to provide sufficient liquidity for expected disbursements. ii. Funds in excess of liquidity requirements are allowed for investments maturing in greater than one year. However, longer-term investments tend to be less liquid than shorter term investments. Portfolio investment maturities will be limited as follows: Total Portfolio Maturitv Constraints: Under 30 days 10% or three months Estimated Operating Expenditures Under 1 year 25% Under 5 years 100% Weighted Average Maturity of Portfolio 2.0 years iii. Reserve or Capital Improvement Project funds may be invested in securities exceeding the maximum term if the maturities of such investments are made to coincide as nearly as practicable with the expected use of the funds. iv. Larger issuance sizes enhance liquidity as there are likely to be a greater number of investors. Issuance sizes above a minimum amount qualify a corporate or municipal debt bond issuance for index eligibility. Index eligible bonds have a significantly larger investor base which improves liquidity. v. Limiting investment in a specific debt issuance improves secondary market liquidity by assuring there are other owners of the issuance. Policy #F-10, Investment Policy Guidelines Page 9 of 13 US Agency Securities 50% Corporate Debt - Corporate Commercial Paper 25% Corporate Bonds 25% Municipal Bonds 25% 3. Interest Rate Risk Longer-term investments have the potential to achieve higher returns but are also likely to exhibit higher market value volatility due to the changes in the general level of interest rates over the life of the investment(s). Interest rate risk will be mitigated by providing adequate liquidity for short term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes. Certain types of securities, including variable rate securities, securities with principal pay -downs prior to maturity, and securities with embedded options, will affect the interest rate risk profile of the portfolio differently in different interest rate environments. The following strategies will be employed to control and mitigate adverse changes in the market value of the portfolio due to changes in interest rates: 1. Where feasible and prudent, investment maturities should be matched with expected cash outflows to mitigate market risk. H. To the extent feasible, investment maturities not matched with cash outflows, including liquidity investments under one year, should be staggered to mitigate re -investment risk. iii. No commitments to buy or sell securities may be made more than 14 days prior to the anticipated settlement date, or receive a fee other than interest for future deliveries. iv. The maximum percent of callable securities in the portfolio shall be 25%; v. The maximum stated final maturity of individual securities in the portfolio shall be five years, except as otherwise stated in this policy. A. The maximum portfolio average maturity (measured with stated final maturity) shall be 2.0 years. INVESTMENT OF PROCEEDS FROM DEBT ISSUANCE 1. Investments of bond proceeds are restricted under bond covenants that may be more restrictive than the investment parameters included in this policy. Bond proceeds shall be invested in accordance with the parameters of this policy and the applicable bond covenants and tax laws. 2. Funds from bond proceeds and amounts held in a bond payment reserve or proceeds fund may be invested pursuant to ORS 294.052. Investments of bond proceeds are typically not invested for resale and are maturity matched with outflows. Consequently, surplus funds within the scope of ORS 294.052 are not subject to this policy's liquidity risk constraints within section IX (2). INVESTMENT OF RESERVE OR CAPITAL IMPROVEMENT FUNDS Policy #F-10, Investment Policy Guidelines Page 10 of 13 1. Pursuant to ORS 294.135(1)(b), reserve or capital Improvement project funds may be invested in securities exceeding three years when the funds in question are being accumulated for an anticipated use that will occur more than 18 months after the funds are invested, then, upon the approval of the governing body of the county, the maturity of the investment or investments made with the funds may occur when the funds are expected to be used. GUIDELINE MEASUREMENT AND ADHERENCE 1. Guideline Measurement Guideline measurements will use par value of investments. 2. Guideline Compliance: I. If the portfolio falls outside of compliance with adopted investment policy guidelines or is being managed inconsistently with this policy, the Investment Officer shall bring the portfolio back into compliance in a prudent manner and as soon as prudently feasible. ii. Violations of portfolio guidelines as a result of transactions; actions to bring the portfolio back into compliance and; reasoning for actions taken to bring the portfolio back into compliance shall be documented and reported to the Board of County Commissioners. iii. Due to fluctuations in the aggregate surplus funds balance, maximum percentages for a particular issuer or investment type may be exceeded at a point in time. Securities need not be liquidated to realign the portfolio; however, consideration should be given to this matter when future purchases are made to ensure that appropriate diversification is maintained. REPORTING AND DISCLOSURE 1. Compliance The Investment Officer shall prepare a report at least monthly that allows the Board of County Commissioners to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report will also be provided to the investment advisory committee. The report will include, at a minimum, the following: I. A listing of all investments held during the reporting period showing: par/face value; accounting book value; market value; type of investment; issuer; credit ratings; and yield to maturity (yield to worst if callable). ii. Average maturity of the portfolio at period -end. iii. Maturity distribution of the portfolio at period -end. iv. Average portfolio credit quality of the portfolio at period -end. v. Average weighted yield to maturity (yield to worst if callable investments are allowed) of the portfolio. Policy #F-10, Investment Policy Guidelines Page 11 of 13 A. Distribution by type of investment. vii. Transactions since last report. Aii. Distribution of transactions among financial counterparties such as broker/dealers. ix. Violations of portfolio guidelines or non-compliance issues that occurred during the prior period or that are outstanding. This report should also note actions (taken or planned) to bring the portfolio back into compliance. 2. Performance Standards/ Evaluation At least annually, the Investment Officer shall report comparisons of investment returns to relevant alternative investments and comparative Bond Indexes. The performance of the portfolio should be compared to the performance of alternative investments such as available certificates of deposit; the Oregon Short Term Fund; US Treasury rates; or against one or more bond indices with a similar risk profile (e.g., Bond indexes comprised of high grade investments and maximum maturities of three years). When comparing performance, all fees and expenses involved with managing the portfolio shall be included in the computation of the portfolio's rate of return. Marking to Market. The market value of the portfolio shall be calculated at least monthly and a statement of the market value of the portfolio shall be included in the monthly report. 4. Audits Management shall establish an annual process of independent review by the external auditor to assure compliance with internal controls. Such audit will include tests deemed appropriate by the auditor. POLICY MAINTENANCE AND CONSIDERATIONS 1. Review The investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. The annual report should also serve as a venue to suggest policies and improvements to the investment program, and shall include an investment plan for the coming year. Exemptions Any investment held prior to the adoption of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested as provided by this policy. Policy Adoption and Amendments This investment policy and any modifications to this policy must be formally approved in writing by the Board of County Commissioners. This policy must be submitted to the Oregon Short Term Fund (OSTF) Board for review if: Policy #F-10, Investment Policy Guidelines Page 12 of 13 This policy allows maturities beyond 18 months unless the funds are being accumulated for a specific purpose, including future construction projects, and upon approval of the Board of County Commissioners, the maximum maturity date matches the anticipated use of the funds (ORS 294.135(l)(b) and 294.135(3)). And either: A. This policy has never been submitted to the OSTF Board for comment; Or B. Material changes have been made since the last review by the OSTF Board. Regardless of whether this policy is submitted to the OSTF Board for comment, this policy shall be re -submitted not less than annually to the Board of County Commissioners for approval. Approved by the Board of Commissioners December 28, 2016. Tom Anderson County Administrator Policy #17-10, Investment Policy Guidelines Page 13 of 13 E S C 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 BOCC Wednesday Afternoon Meeting of March 13, 2019 DATE: March 5, 2019 FROM: Judith Ure, Administrative Services, 541-330-4627 TITLE OF AGENDA ITEM: 2019-21 Public Transit Grant Recommendations RECOMMENDATION & ACTION REQUESTED: Approve the recommendations of the Special Transportation Fund Advisory Committee and authorize staff to prepare and submit the County's public transit grant applications to the Oregon Department of Transportation (ODOT). ATTENDANCE: Judith Ure, Management Analyst, Department of Administrative Services SUMMARY: Each biennium, the Oregon Department of Transportation (ODOT) makes funds available from the Special Transportation Fund (STF) Formula and Federal Transit Administration (FTA) Section 5310 (5310) grant programs for the purpose of supporting public transit services, primarily serving seniors and people with disabilities. These funds are distributed to local service providers through a competitive grant process. Applications are received by Deschutes County and reviewed by the County's Special Transportation Fund Advisory Committee (STFAC) which then formulates a recommendation for consideration by the Board of County Commissioners. The Board's decision is forwarded to ODOT which determines the final awards. Applications and additional background information further describing the programs and the STFAC's recommendations are attached. Date: March 5, 2019 To: Deschutes County Board of Commissioners From: Judith Ure, Management Analyst Subject: Special Transportation Fund Advisory Committee Recommendations Public Transit Grant Process Each biennium, the Oregon Department of Transportation (ODOT) makes funds available from the Special Transportation Fund (STF) Formula and Federal Transit Administration (FTA) Section 5310 (5310) grant programs for the purpose of supporting public transit services, primarily serving seniors and people with disabilities. These funds are distributed to local service providers through a competitive grant process. Applications are received by Deschutes County and reviewed by the County's Special Transportation Fund Advisory Committee (STFAC) which then formulates a recommendation for consideration by the Board of County Commissioners. Upon Board approval, staff submits applications to ODOT as required to receive the funds. Following ODOT approval, staff begins the process of preparing individual contracts with recipient agencies and making payments which are issued quarterly throughout the biennium. Amounts Available The 2019-21 total FTA 5310 allocation is $1,215,448 for the 2019-21 biennium, but is divided into two categories. The amount available for the general FTA 5310 program is $914,745. A separate $300,703 is available for projects designated only within small urban areas. Deschutes County's 2019-21 biennium STF formula allocation from ODOT was originally set at $869,722, of which $4,000 will be retained by the County to offset administrative expenses. However, ODOT issued a subsequent notice in January 2019 indicating that the Governor's proposed budget eliminated the State's general fund subsidy of the STF program, resulting in the possibility of a significant reduction in the amount available for grants. For the purposes of completing the STF process for the 2019-21 biennium however, ODOT suggested that agencies assume that the full allocation will be received, but also develop a contingency plan which provides for 40% less in available funds. Applications and Recommended Funding Deschutes County received 1 application for funding from the FTA 5310 Small Urban Area Grant Program, 6 applications for funding from the FTA 5310 General Grant Program, and 2 applications for funding from the STF Grant Program. These applications are attached as well as summarized in the tables below. On March 4, 2019, the Deschutes County STFAC convened in a public meeting to review applications for funding and to develop a recommendation for STF and FTA 5310 distribution. Applicant agencies were invited to attend that meeting and were given an opportunity to further describe their services and requests for funding. Public comment was solicited in advance, although none was received. The Committee's recommendations, which appear below, are based on the amounts available for distribution, written and verbal information provided by the applicants, and priorities identified in the Deschutes County Coordinated Human Services Transportation Plan. Minutes that outline options discussed by the STFAC during the March 4 meeting are attached. FTA Section 5310 Small UrbanArea Grant Program — $300,703.00 Available Agency 2019-21 Request 2019-21' Recommendation Cascades East Transit — Bend Dial -a -Ride Services $337,276.23 $300,703.00 ; Total $337,276.23 $300,703.00 FTA Section 5310 General Grant Program — $914,745.00 Available Agency 2019-21 Request 2019-21' Recommendation - City of Redmond — Redmond Transit Services $436,854.99 .'$436,854.99 ` City of Sisters — Sisters Transit Services $57,664.98 $57,664.98 Cascades East Transit — La Pine Area Transit Services $87,371.00 $87,371.00: Cascades East Transit — Bend Dial -a -Ride Services $73,098.54 $73,098.54 Cascades East Transit — Fleet Preventative Maintenance $292,300.86 $259,755.49' Cascades East Transit — Vehicle Re lacement $68,999.68 $0 Total $1,016,290.05 $914,745.00 Special Transportation Fund Formula Grant Program — $865,772.00 Available Agency 2019-21 Re uest 2019-21' Recommendation* Cascades East Transit — Dial -a -Ride Services & Vehicle Replacement $865,772.00 $765,772.00' Opportunity Foundation of Central Oregon — Client Transit Services $100,000.00 $100,000.00 Total $965,772.00 $865,772.00' * The STFAC also recommends that, if available funds are reduced in an amount of up to 40%, that the awards for each agency be reduced by an equal percentage. In the event of a reduction of greater than 40%, the STFAC will reconvene to discuss further options. Recommended Action Staff recommends that the Board of Commissioners approve the recommendations of the STFAC and authorize staff to prepare and submit the County's public transit grant applications to ODOT. s�TEs � '01 2� ❑ < Deschutes County Department of Administrative Services 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - w;ww.deschutcs.o.rg MINUTES OF MEETING SPECIAL TRANSPORTATION FUND ADVISORY COMMITTEE Monday, DATE/TIME: March 4, 2019, 1:00 pm LOCATION: DeArmond Room DEPARTMENT OR GROUP: Department of Administrative Services / Special Transportation Fund Advisory Committee (STFAC) ATTENDEES Tyler Deke, STFAC Member Peter Russell, STFAC Member Mike Lovely, STFAC Member (via telephone) Judith Ure, Department of Administrative Services / STFAC Coordinator Seth Johnson, Opportunity Foundation of Central Oregon (OFCO) Andrea Breault, Cascades East Transit (CET) Derek Hofbauer, Central Oregon Intergovernmental Council (COIC) / Public PURPOSE OF MEETING: Review applications to the Special Transportation Fund (STF) and Federal Transit Administration (FTA) Section 5310 (53 10) grant programs and formulate recommendations to be forwarded to the Deschutes County Board of County Commissioners for approval. ITEMS DISCUSSED (see attached agenda): Introductions: Attendees, as listed above, introduced themselves and stated their association to the STF process. Representatives of applicant agencies provided brief summaries of their funding requests. Mr. Johnson described that OFCO is running smaller fleet vehicles, which may result in the underreporting of data. Additionally, costs for transportation services have increased. Ms. Breault explained how Dial -A -Ride (DAR) services in Bend are primarily for low-income individuals and Bend residents need to apply to qualify. CET serves rural DAR services as well but is open to the general public without an application process. FTA 5310 Small Urban Recommendation: Ms. Breault discussed the preventative maintenance aspect of the application. CET has an aging fleet and is looking for low -floor smaller vehicles. Purchase service agreements are part of the 5310 funding that goes to cities. Tyler Deke asked Seth Johnson how the changing workforce structure impacts transportation. Mr. Johnson responded that more evening and weekday trips and rides aren't well reflected in data collection processes. Many customers use CET services (particularly DAR). Issues with DAR include a 30 -minute window, which can be problematic for employers. Only one application to the FTA 5310 Small Urban Program is under review. Per a suggestion from the Oregon Department of Transportation (ODOT), the application requests more than is currently available allowing for an increased award if additional funds are secured. Ms. Ure suggested that the CET application for Bend Dial -A -Ride project be funded at the $300,703 amount of funds currently available. FTA 5310 General Grant Application Review: Ms. Breault prioritized the following services referenced in the applications submitted by CET: 1. Sisters 2. La Pine 3. Redmond 4. Purchase services 5. Preventative maintenance 6. DAR replacement vehicle Ms. Breault indicated that, to conform to the actual amount available for awards, CET could best accommodate no funding for the DAR replacement vehicle and a reduction to the preventative maintenance request. She also mentioned that there may be some other funding opportunities that could help backfill these dollars. Mr. Lovely asked if there were other grant opportunities. Ms. Breault mentioned there were grants for STIF discretionary, but they wouldn't be applicable. A motion was made by Mr. Russell to make up for the shortfall by not funding the DAR replacement vehicle request and reducing funds from the preventative maintenance request for the remaining amount needed to balance to the amount available for grants. Mr. Russell amended his motion to include funding CET's FTA 5310 small urban request (outlined above) at $300,703. Mr. Deke seconded the motion and the decision unanimously passed. STF Fund Discussion: Ms. Ure indicated that Abilitree did not submit an application as they have in the past. Two applications were submitted (CET and Opportunity Foundation); however, there is $100,000 more requested in the applications than is available to fund. Mr. Deke supported offering $90,000 to OFCO and the remainder for CET. Mr. Russell put forward a motion to fully fund Opportunity Foundation at $100,000. Mr. Lovely seconded the motion and it passed unanimously. Ms. Ure reminded members that the STFAC should also provide a recommendation to address a potential 40% reduction in STF funding as described by ODOT. Mr. Deke asked the applicants how they would manage a reduction at this level. Mr. Johnson responded that OFCO would still be able to operate, but with decreased services. Ms. Breault responded that CET would need to reduce service operation levels for both rural and Bend DAR services. By consensus, the STFAC recommended that, in the event of a reduction of up to 40% in available funds, the awards should each be reduced by an equivalent percentage. Mr. Russell also suggested that, if ODOT reduces available funds by more than 40%, the STFAC reconvene to discuss other options. Next Steps: Ms. Ure outlined the upcoming steps in the STF process, including approval of the recommendations by the Board of Commissioners, submitting an application to ODOT, receiving notification of awards, and executing agreements. She also mentioned a possibility, as indicated by ODOT staff, that additional STF funds may be made available for a statewide discretionary grant program in the fall of 2019. Ms. Ure also described the possibility of aligning the STFAC with a new Statewide Transportation Improvement Fund Advisory Committee in the future, although such action has yet to be determined. ADJOURNMENT: The meeting concluded at 2:08 p.m. REPORT COMPLETED/SUBMITTED BY: Judith Ure, Management Analyst Deschutes County Special Transportation Fund Advisory Committee Meeting January 24, 2017 Attendees On site: Sue Page, STFAC Chair Tyler Deke, STFAC Member Peter Russell, STFAC Member Judith Ure, Deschutes County Department of Administrative Services Karen Friend, Cascades East Transit Seth, Johnson, Opportunity Foundation of Central Oregon April O'Meara, Abilitree Via telephone: Mike Lovely, STFAC Member Deschutes County Special Transportation Advisory Committee Meeting Deschutes County Services Building — C.E. Lyon Room 1300 NW Wall Street, Bend, Oregon January 24, 2017 Agenda 3:00 p.m. Introductions ■ Sign -In Sheet ■ Amount Available & Sources ■ Award History 3:15 p.m. Applicant Statements ■ Summary of Requests ■ Advance Questions 3:30 p.m. Special Transportation Fund Distribution Recommendation 4:45 p.m. Next Steps ■ Board Approval (February 8, 2017) ■ County Application ■ Date of Award ■ Agreements ■ Future Funding