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2020-359-Minutes for Meeting September 21,2020 Recorded 10/19/2020vT E S c�G BOARD OF COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541 ) 388-6570 Recorded in Deschutes County C J2020_359 Nancy Blankenship, County Clerk Commissioners',Journal 10/19/2020 3:06:53 PM �yL�\JNRSCO�y� ��'�IIII�I'III'II'III�I�II'I�II 2020-359 BOCC MEETING MINUTES 1:00 PM ONDAY September 21, 2020 Barnes Sawyer rooms Dive Streamed Video Present were Commissioners Patti Adair (via Zoom conference call), Anthony DeBone, and Phil Henderson. Also present were 1-om Anderson, County Administrator; David Doyle, County Counsel (via Zoom conference call); and Sharon Keith, BOCC Executive Assistant (via Zoom conference call). Attendance was limited in response to Governor's Virus orders, CALL TO ORDER: Chair Adair called the meeting to order at 1:00 p.m. PLEDGE OF ALLEGIANCE ACTION ITEMS: 1. Discussion on Bio Carbon Solutions Proposal Director of Solid Waste Operations Timm Schimke presented the discussion noting that Bio Carbon Solutions is proposing a waste to energy facility in Deschutes County. Bio Carbon Solutions gave a presentation to the Board on August 3, 2020 and Mr. Schimke inquired as to how (if) the Board wishes to proceed further. Commissioner Adair inquired if the company has experience and has already developed this type of facility in another location. Mr. Schimke stated that as of today, he is not aware that Bio Carbon BOCC MEETING SEP'TEMBER 21, 2020 PAGE 1 OF 5 Solutions has actually developed this type of facility. Mr. Schimke believes that this proposal/facility would be the first. The Board discussed this type of facility. Commissioner DeBone suggested this concept be included in future considerations of the Solid Waste Management Plan. Commissioner Henderson feels a pilot project could be looked at in the future at possibly the Negus transfer station in Redmond. Mr. Schimke explained that the design process could take two years. Commissioner DeBone expressed the need to presently focus on the decision(s) specific to the future of Knott Landfill prior to considering this proposal/concept. Mr. Schimke will contact the consultant for a peer review. 2. Consideration to Reallocate On -Call Position to a New FTE in the Sheriff's Office Joe Brundage Sheriff's Office Business Manager (via Zoom conference call) presented the item for consideration noting the position requested is a part of the background investigations process for new employees in the Sheriff's Office. This item is included in the form of a resolution on Wednesday's consent agenda. 3. Consideration of Grant Application for Software and Hardware Technology for the Sheriff's Office. This item was moved later on the agenda. 4. Consideration of Grant Funding Acceptance for CCBHC Expansion and Extending FTE in Health Services through Resolution No. 2020-059 Janice Garceau, Health Services and Dan Emerson, Finance (via Zoom conference call) presented this item explaining the services that would be provided through the grant funding. HENDERSON: Move acceptance of grant funding and adopted Resolution No. 2020-059 BOCC MEETING SEPTEMBER 21, 2020 PAGE 2 OF 5 DEBONE: Second VOTE: HENDERSON: DEBONE: ADAI R: Yes Yes Chair votes yes. Motion Carried 5. Housing Strategies Project Discussion Community Development Department Planner Tanya Saltzman and Planning Manager Peter Gutowsky (via Zoom conference call) as well as Community Development Director Nick Lelack presented the item for discussion. Commissioner Henderson would like to have a consultant examine the specific costs associated with housing. Ms. Saltzman reviewed the options to consider. Presentation attached to the record. Commissioner DeBone sees the first step as a discussion between the BOCC and the Planning Commission. Ms. Saltzman will present this item for further discussion including maps and history of housing developments. Commissioner Adair excused herself at 3:00 p.m. for another scheduled appointment. 6. Consideration of Grant Application for Software and Hardware Technology for the Sheriff's Office DCSO Sgt. Kent VanderKamp (via Zoom conference call) presented this item for consideration of a grant application and explained the benefits of the electronic citation program. This program will also benefit the Circuit Court (and perhaps Justice Court). The grant award from the Oregon Department of Transportation would allow funding to the Sheriff's Office in the amount of $141,000 with the Sheriff's Office funding a required match of $24,838.00. HENDERSON: Move approval of grant application DEBONE: Second BOCC MEETING SEPTEMBER 2.1, 2020 PAGE 3 OF 5 VOTE: HENDERSON: Yes DEBONE: Vice -Chair votes yes. Motion Carried ADAIR: Absent, excused. 7. Consideration of Municode for Deschutes County Code Amendments and Publishing County Counsel Dave Doyle (via Zoom conference call) presented the item for information only at this time. Mr. Doyle explained this project of migrating the county code from its present platform at IT, to the external platform maintained by Municode, will necessitate that the Commissioners consider and approve a number of housekeeping (and a few substantive) amendments to the current code. The current Deschutes County IT platform is cumbersome and not user friendly. Municode is also the host of the Deschutes County website. Municode is also being considered for the electronic agenda management system; the two systems would integrate providing an efficient and streamlined system for both the public and for county staff. Mr. Doyle will provide the Board with the proposed text amendments soon, in advance of a public hearing in late -November. The Board expressed support. COMMISSIONER UPDATE: • Commissioner Henderson attended the Cascade Chute Out Rodeo event this past weekend. Commissioner Henderson requested a report on the P/L of the event. • Commissioner DeBone assisted in serving meals this weekend for the wildfire evacuees that are being lodged here in Deschutes County. BOCC MEETING SEP7EMBER 21, 2020 PAGE 4 OF 5 County Administrator Anderson has sent the Board a draft email regarding the Whistleblower Policy and will send it to county staff upon approval. RECESS: At the time of 3:22 p.m., the Board took a recess and reconvened the meeting at 3:27 p.m. EXECUTIVE SESSION: At the time of 3:27 p.m. the Board went into Executive Session under ORS 192.660 (2) (e) Real Property. The Board came out of Executive Session at 3:56 p.m. At the time of 3:56 p.m. the Board went into Executive Session under ORS 192.660 (2) (d) Labor Negotiations. The Board came out of Executive Session at 4:22 p.m. Being no further items to come before the Board, the meeting was adjourned at 4:22 p.m. DATED this ___ ___ Day of __� 2020 for the Deschutes County Board of Commissioners. PATTI A AIR„ GLAIR ANTHONY DEBONE, VICE CHAIR BOCC MEETING SEPTEMBER 21, 2020 PAGE 5 QE 5 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 1:00 PM, MONDAY, SEPTEMBER 21, 2020 Barnes Sawyer Rooms - Deschutes Services Center - 1300 NW Wall Street - Bend This meeting is open to the public, usually streamed live online and video recorded. To watch it online, visit www. deschutes. org/meetings. 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. Item start times are estimated and subject to change without notice. CALL TO ORDER MEETING FORMAT In response to the COVID-19 public health emergency, Oregon Governor Kate Brown issued Executive Order 20-16 (later enacted as part of HB 4212) directing government entities to utilize virtual meetings whenever possible and to take necessary measures to facilitate public participation in these virtual meetings. Since May 4, 2020, meetings and hearings of the Deschutes County Board of Commissioners have been conducted primarily in a virtual format. Attendance/Participation options include: Live Stream Video: Members of the public may still view the BOCC meetings/hearings in real time via the Public Meeting Portal at www.deschutes.org/meetings. In Person Attendance: Limited due to Virus restrictions. Please contact Sharon Keith at sharon.keithC@deschutes.org prior to the meeting to request in person attendance. Citizen Input: Citizen Input is invited in order to provide the public with an opportunity to comment on any meeting topic that is not on the current agenda. Citizen Input is provided by submitting an email to: citizen input(@deschutes.org or by leaving a voice message at 541-385-1734. Citizen input received before the start of the meeting will be included in the meeting record. Zoom Meeting Information: Staff and citizens that are presenting agenda items to the Board for consideration or who are planning to testify in a scheduled public hearing may participate via Zoom meeting. The Zoom meeting id and password will be included in either the public hearing materials or Board of Commissioners BOCC Meeting Agenda Monday, September 21, 2020 Page 1 of 3 through a meeting invite once your agenda item has been included on the agenda. Upon entering the Zoom meeting, you will automatically be placed on hold and in the waiting room. Once you are ready to present your agenda item, you will be unmuted and placed in the spotlight for your presentation. If you are providing testimony during a hearing, you will be placed in the waiting room until the time of testimony, staff will announce your name and unmute your connection to be invited for testimony. Detailed instructions will be included in the public hearing materials and will be announced at the outset of the public hearing. PLEDGE OF ALLEGIANCE ACTION ITEMS 1. 1:00 PM Discussion on Bio Carbon Solutions Proposal - Timm Schimke, Director of Solid Waste 2. 1:45 PM Consideration to Reallocate On -Call Position to a New FTE in the Sheriff's Office -Joe Brundage, 3. 2:00 PM Consideration of Grant Application for Software and Hardware Technology for the Sheriff's Office - Kent VanderKamp, Sergeant 4. 2:15 PM Consideration of Grant Funding Acceptance for CCBHC Expansion and Extending FTE in Health Services through Resolution No. 2020-059. - Dan Emerson, Budget Analyst 5. 2:30 PM Housing Strategies Project Discussion - Tanya Saltzman, Associate Planner 6. 3:15 PM Consideration of Municode for Deschutes County Code Amendments and Publishing - David Doyle, Legal Counsel 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. EXECUTIVE SESSION 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. Board of Commissioners BOCC Meeting Agenda Monday, September 21, 2020 Page 2 of 3 Executive sessions are closed to the public, however, with few exceptions and under specific guidelines, are open to the media. Executive Sessions under ORS 192.660 (2) (e) Real Property and ORS 192.660 (2) (d) Labor Negotiations ADJOURN To watch this meeting on line, go to: www.deschutes.org/meetings Please note that the video will not show up until recording begins. You can also view past meetings on video by selecting the date shown on the website calendar. Deschutes County encourages persons with disabilities to participate in all programs and activities. This event/location is accessible to people with disabilities. If you need accommodations to make participation possible, please call (541) 617-4747. FUTURE MEETINGS: Additional meeting dates available at www.deschutes.org/meetingcalendar (Please note: Meeting dates and times are subject to change. All meetings take place in the Board of Commissioners' meeting rooms at 1300 NW Wall St., Bend, unless otherwise indicated. If you have questions regarding a meeting, please call 388-6572.) Board of Commissioners BOCC Meeting Agenda Monday, September 21, 2020 Page 3 of 3 0-� ES CMG -A o 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 Monday Meeting of September 21, 2020 DATE: September 16, 2020 FROM: Timm Schimke, Solid Waste, 541-317-3177 TITLE OF AGENDA ITEM: Discussion on Bio Carbon Solutions Proposal BACKGROUND AND POLICY IMPLICATIONS: See attached staff report FISCAL IMPLICATIONS: None at this time. ATTENDANCE: Timm Schimke To: BOCC CC: Tom Anderson From: Timm Schimke Re: Bio Carbon Solutions Global Proposal Date: September 15, 2020 INTRODUCTION Bio Carbon Solution Global (BCS) has approached the County with a proposal to deploy what they term a Total Recovery Facility (TRF) in the County to process solid waste into energy products. There have been a number of meetings with staff and BCS as well as a presentation to the Board of County Commissioners for this project. BCS is proposing to: 1. Sort our incoming waste stream to remove materials that cannot be processed by their system (metal, glass and other non -carbon materials). 2. Process/grind all remaining materials into a uniform feedstock. 3. Dry the feedstock to about 5% moisture content prior to conversion. 4. Use a pyrolysis process to extract bio-gas from the feedstock 5. Convert the bio-gas into liquid fuel products. The proposal asserts that their process will eliminate the need for landfill capacity in Deschutes County. Any materials that cannot be processed, or that remains as a residual or by-product will be marketed or recycled. A global engineering company warrants the process. Their process could be used for other feedstock in addition to Municipal Solid Waste (MSW) such as woody biomass or tires. Their process can be sized to process as little as 100 tons per day, and can be expanded as needed to be able to process all of our waste volumes. Negus Transfer station currently averages about 100 ton per day. We currently average about 500 tons per day total. Their proposal includes some other amenities such as a public education center and child care facilities for employee use. BCS does not have a commercial scale operating facility operating in the country, although they have approached other communities and may have a facility up and running in the future. DISCUSSION The Department of Solid Waste recently completed a comprehensive Solid Waste Management Plan (SWMP) that included a thorough examination of a variety of waste to energy approaches to solid waste management. The conclusion to that analysis is that an alternative technology for managing waste in Deschutes County does not appear feasible at this time, primarily due to costs and our relatively low volumes of waste. The SWMP recommends that the County should continue to monitor and assess the status and feasibility of alternative technologies as a part of our solid waste system in three to five years. The plan also states, "the County should only consider those technologies/vendors that have a proven record of successfully operating a commercial scale facility". BCS is not the only group who has approached the Department with similar proposals. In addition to the recommendations in the SWMP, the Board will need to consider the implications of a proposed sole source contract with BCS while other interested parties exist. BOCC OPTIONS BOCC direction is requested on the following options: 1. Follow the recommendation in the SWMP, and not consider projects that are not operational in the country, preferably in a community of similar size to Deschutes County. 2. Engage a consultant to review the BCS proposal and make recommendation to the Board. If the Board wishes to move ahead with a review of BCS's proposal by a consultant, you may first want to consider a solicitation to meet public procurement requirements and determine if other similar proposals (with no operational history) should be considered. Any unproven proposals would probably require a review by qualified consultants as part of the process of choosing a system. 3. Issue a solicitation (RFP/RFQ) for other waste to energy developers. 4. Other AGENDA REQUEST & STAFF REPORT For Board of Commissioners BOCC Monday Meeting of September 21, 2020 DATE: September 9, 2020 FROM: Joe Brundage, Sheriff's Office, TITLE OF AGENDA ITEM: Consideration to Reallocate On -Call Position to a New FTE in the Sheriff's Office RECOMMENDATION & ACTION REQUESTED: We request the creation of a new FTE position: Sergeant - Professional Standards We also propose eliminating the current on -call position for background investigations BACKGROUND AND POLICY IMPLICATIONS: Prior to FY 2020, we brought background investigations in-house by creating an on -call position. The intent was to evaluate the effectiveness and cost savings before committing to the new position. The Sheriffs Office is very pleased with our in-house process, and request a permanent position. FISCAL IMPLICATIONS: Minimal. We found cost savings from creating the on -call position. Benefits are currently being earned, so the only potential fiscal impact is the change in rate of pay, as this position is a Sergeant. ATTENDANCE: Joe Brundage, Sheriffs Office via Zoom conference call o 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 Monday Meeting of September 21, 2020 DATE: September 16, 2020 FROM: Tanya Saltzman, Community Development, TITLE OF AGENDA ITEM: Housing Strategies Project Discussion On July 27, 2020 staff provided the Board with a draft housing profile and potential options for further defining a housing strategies project, per the Board's ongoing interest. Staff returned on August 24 to discuss the Board's preferred direction regarding scope, timeline, and most importantly, defining the desired outcome of the project. During the discussion the Board prioritized rural housing opportunities and county -owned properties. Staff returns now to present additional information for the Board's consideration in defining a scope of work. MEMORANDUM TO: Deschutes County Board of Commissioners FROM: Tanya Saltzman, AICP, Associate Planner Peter Gutowsky, AICP, Planning Manager Nick Lelack, AICP, Community Development Director DATE: September 16, 2020 SUBJECT: Housing Strategies Project / Scope of Work I. OBJECTIVE The Board of County Commissioners (Board) has stated its interest in exploring housing opportunities in the rural county and on County -owned land. This memorandum explores ways in which to accomplish this goal. Staff seeks Board direction at this or a future meeting on whether to: 1. Initiate one or more options listed below or another option(s). Based on the option(s) selected, staff will provide an update to the Board on next steps within two weeks. 2. Return to the Board for a continued discussion on the options presented or other options, or additional information requested by the Board. II. BACKGROUND On July 27, 2020 staff provided the Board with a draft housing profile and potential options for further defining a housing strategies project, per the Board's ongoing interest.' The housing profile identified up to 5,888 vacant lots in the rural county where residential uses are permitted outright.' Staff returned on August 24 to discuss the Board's preferred direction regarding scope, timeline, and most importantly, defining the desired outcome of the project.3 During the discussion the Board prioritized 1 http://deschutescountyor.iqm2.com/Citizens/Detail Meeting.aspx?ID=2580 2 Ibid. See Tables 8 (Resort Areas), 9 (Rural Residential Areas) and 10 (Future Opportunities for Rural Residential Lots). 3 http://deschutescountyor.iqm2.com/Citizens/Detail Meeting.aspx?ID=2587 rural housing opportunities and county -owned properties. Staff returns now to present the following additional information for the Board's consideration in defining a scope of work: Twelve -Month Market Analysis • Emerging Opportunities Housing Strategies in Other Counties • Institutional Challenges Existing Residential Opportunities in • Next Steps Rural Deschutes County These can ultimately be incorporated into the Housing Profile document to create a comprehensive report that may be utilized in a number of ways depending on how the Board chooses to proceed. III. TWELVE-MONTH MARKET ANALYSIS Thus far, staff has presented to the Board several factors that affect housing supply and demand in the county: population trends and vacant land. However, the existence of vacant land does not necessarily mean it will be affordable. This section summarizes recent county sales data provided by the Central Oregon Association of Realtors (COAR) in an effort to better understand the dynamics of housing cost in various areas of Deschutes County over the last year. Tables 1 and 2 summarize single-family and manufactured home sale prices over the last 12 months (September 2019 - August 2020). Sale prices are separated by geographic sub -region, including resort communities; they largely correspond to the areas utilized in the Vacant Residential Lands Analysis in the Rural Housing Profile. Table 1, 12-Month Average Sale Prices in Rural Residential Areas Bend Unincorporated Average price 382 Homes $762,134.55 56 Manufactured Homes $342,381.70 Redmond Unincorporated Average price 190 Homes $502,766.16 37 Manufactured Homes $291,755.84 Sisters Unincorporated Average price 104 Homes $659,359.20 11 Manufactured Homes $361,086.09 La Pine Unincorporated Average price 160 Homes $337,876.72 100 Manufactured Homes $234,156.50 Between Tumalo & Sisters Average price 21 Homes $779,514.29 5 Manufactured Homes $365,000.00 Three Rivers South Average price 150 Homes $499,118.51 43 Manufactured Homes $269,341.86 Table 2, 12-Month Average Sale Prices in Resort Areas Sunriver Average price 184 Homes $579,958.67 0 Manufactured Homes Black Butte Average price 68 Homes $700,765.31 0 Manufactured Homes Inn of 7th Mt. Average price 14 Condo $199,200.00 5 Timeshare $13,700.00 Widgi Creek Average price 3 Homes $756,666.67 0 Manufactured Homes Caldera Springs Average price 25 Homes $1,139,859.00 0 Manufactured Homes Tetherow Average price 66 Homes $1,384,302.89 0 Manufactured Homes Eagle Crest Average price 93 Homes $535,929.03 0 Manufactured Homes Pronghorn Average price 8 Homes $1,199,125.00 0 Manufactured Homes Page 2 of 11 Key Points The most real estate activity in non -resort communities occurred in South County and near Bend. Newer destination resorts are experiencing higher real estate values compared to the other older resorts. South County has the lowest relative real estate values, especially for manufactured homes. It is important to note that since the COVID-19 outbreak began in the spring of 2020 in the United States and the region, the real estate market has become more unpredictable. In the second and third quarters of 2020, it has been apparent that market pressure is increasing as people from more populated areas seek homes in Central Oregon. With the uncertainty surrounding the virus —and the larger economy —it is difficult to predict if this trend will continue, but there is no doubt that COVID will continue to impact the real estate market in some fashion going forward as reported by several news sources. Similarly, the historic wildfires of September 2020 have resulted in significant displacement of residents of portions of the state. It is possible that this will have an effect on market demand in Central Oregon, including the need for manufactured homes as a housing solution that is quicker and cheaper to establish than traditional single-family dwellings. IV. HOUSING STRATEGIES IN OTHER COUNTIES Staff has noted and shared with the Board the housing studies performed by four other counties: Tillamook, Morrow, Coos, and Clatsop. The Board expressed interest in those counties' use of a consultant for the studies. Below, staff shares information from outreach to those counties regarding the reasons for their project and their experiences with their consultants. Clatsop County • Consultant: Angelo Planning Group (APG) and Johnson Economics • Cost: $100,000 ($50,000 from County, $10,000 each from cities) • Overview: joint study with County and five cities to address need for affordable housing, the "missing middle," and housing types other than single-family like apartments, cottage clusters, and mixed use buildings. • Consultant responsibilities and benefits: Market research and analysis; third -party moderator for discussions. • Other notes: Informal opinions were that the study did not focus on housing in rural areas enough and instead focused disproportionately on increasing and diversifying housing stock in cities. Coos County Consultant: czb LLC Cost: $33,500 (did not include adoption) Page 3 of 11 • Overview: Study built on a volunteer housing coalition's preliminary study to update the housing section of the comprehensive plan. Housing was lacking for the area's median income -level residents (many with service -oriented jobs); conversion of homes to short-term rentals was also a concern. • Consultant responsibilities and benefits: statistical analysis; recommendations for strategies (housing trust fund models, employer housing funds, for example), GIS, code assistance. Consultant was from outside of Oregon and thus required extra time to familiarize themselves with statewide goals (Goal 10). • Other notes: One result of the plan was to address foreclosures —looking for foreclosed properties for the county to donate to the local housing coalition; and for the county to assist in readying them for auction, which in turn lowers costs for developers and potential buyers. Morrow County • Consultant: Angelo Planning Group (APG) and Johnson Economics • Cost: Not Available. • Overview: Purpose was to describe potential strategies for addressing the housing needs of Morrow County and the cities of Boardman, Heppner, lone, Irrigon, and Lexington. Land controlled by Morrow County is located in the Urban Unincorporated Area of Urban Growth Boundaries (UGBs). • Consultant responsibilities and benefits: Not Available. • Other notes: Morrow County needs local amenities and services. The projected future housing need for Morrow County for 20 years (2039) is 599. Tillamook County • Consultant: czb LLC • Cost: Not Available • Overview: Land scarcity due to steep slopes, wetlands, coastal protection areas, flood plains, and forestlands. Housing is also impacted by a low -wage economy, and a marketplace heavily influenced by seasonal housing and tourism. Housing costs more than local wages have the power to buy or rent. Recommendations include deferring system development charges, restructure the transient lodge tax to allow funds to go to work force housing, creating a community land trust, and increasing investment in infrastructure development within UGBs. • Consultant responsibilities and benefits: Not available. • Other notes: Existing housing stock is not well maintained. Page 4 of 11 Key Points The four housing strategies focus predominantly inside UGBs to provide affordable housing through a range of housing types, subsidies and housing trusts. Based on feedback from Clatsop and Coos counties, consultants can be useful, particularly for technical and data analysis and research and potentially'out of the box' recommendations. Having them as a neutral third party and public process facilitator is helpful if the project involves significant public outreach and/or an appointed committee. V. EXISTING RESIDENTIAL OPPORTUNITIES IN RURAL DESCHUTES COUNTY Rural Deschutes County possesses numerous types of residential development options. Many listed below (*) are exclusive to Deschutes County. • Cluster Development (Miller Tree Farm, Westgate i.e. Westside Transect Zone) • Destination Resorts (Caldera Springs, Eagle Crest, Pronghorn, Tetherow, Thornburgh - proposed) * • Destination Resort Map Amendment (Caldera Springs Expansion; other areas remain eligible until the Bend UGB reaches a population of 100,000) * • Dwellings in Exclusive Farm Use zone (farm dwelling, accessory farm dwelling, relative -help dwelling, non -farm dwelling, lot -of -record dwelling, replacement dwelling, and temporary hardship dwelling) • Dwellings in Forest Use zone (lot -of -record dwelling, large tract dwelling, template dwelling, temporary hardship dwelling, and caretaker dwelling for fish hatchery or park) • Exclusive Farm Use Subzones * • Measure 37 and 49 (property rights claims - the right to land divide and/or build homes as compensation for land use regulations imposed after owners acquired their properties) • Resort Communities (Black Butte, Inn of 7th Mountain, Widgi Creek) • Rural Residential Exception Areas (RR-10, MUA-10, UAR-10, SR 2.5) • UGB Amendments- Affordable Housing Pilot Projects (HB 4079) • Unincorporated Communities (Terrebonne, Tumalo, Sunriver) Key Points Deschutes County offers the most rural residential housing opportunities in Oregon along with Clackamas, Lane and Jackson Counties based on population outside of UGBs. It has the most resort communities and destination resorts as well as one of the largest urban unincorporated communities, Sunriver. It is also the only county with EFU subzones that allow for the smallest EFU Page 5 of 11 parcel sizes in Oregon. The County rates in the top third annually for the number of approved nonfarm dwellings. It appears to have the largest number of lots located in rural residential exception areas, leading to notable cluster developments. Lastly, the Cities of Bend and Redmond are the only two municipalities taking advantage of HB 4079, which allows for expedited UGBs amendments to address affordable housing. VI. EMERGING OPPORTUNITIES In addition to the existing options for residential development listed above, there are several emerging opportunities in the County, including those already in progress, those poised to be initiated if desired, as well as those that require additional action or exploratory work prior to initiating. • Audit County -owned property: Some of the land owned by the County could present opportunities for residential development depending on a number of factors. Staff —Property Management and Facilities, with assistance from the Planning Division and Information Technology —could audit County -owned land by size (removing parcels less than 0.75 acre, for example), zoning designation, groundwater constraints and related factors to determine development potential. ® Conventional Housing Combining (CHC) Zone: The CHC zone (DCC Chapter 18.92) was created by petition prior to the adoption of PL-15, Deschutes County Zoning Ordinance in 1979. It requires homes to be "conventional or modular housing permanently attached to real property." The "permanent attachment" requirement precludes people from living out of mobile homes on CHC properties. This zoning district applies to three large areas near Bend to the north, northwest, and east. Repealing the CHC would give those properties the potential to provide affordable housing in the form of mobile or manufactured homes, which are less expensive alternatives to stick -built or modular housing. • Nonprime Resource Lands Amendments: These text amendments, currently in progress, would re -designate six areas developed with rural residential uses that were platted or conveyed prior to State enabling planning legislation taking effect in Deschutes County. These areas are subject to strict EFU or Forest Use zoning requirements dictated by State law that affect the siting of new dwellings, remodels, additions and accessory structures. Upon acknowledgment of the NPR Lands policies, Deschutes County will propose a new zone that allows rural residential uses to be permitted outright. • La Pine Neighborhood Planning Area: This project would create area plans for the 368 acres of County -owned property in the Newberry Neighborhood in La Pine —a unique and timely opportunity to add to the housing supply in the region and increase the available mix of housing types. The current comprehensive plan and development code are a mix of legacy zoning from when the County was the land use authority prior to La Pine's 2006 incorporation and the City's first comprehensive plan and development code. This project would more precisely delineate the allowable densities; the amended code will provide more clarity to both Page 6 of 11 developers and staff, which in turn will make the resulting applications more efficient for the applicant's submittal and in staff review and processing. • Rural Accessory Dwelling Unit Legislation: While a bill allowing rural accessory dwelling units (ADUs) failed to pass in the 2019 and 2020 legislative sessions, the concept appears to have bi-partisan support and strong potential to pass in the 2021 session. The allowance of rural ADUs could dramatically affect the housing landscape in Deschutes County, providing smaller - scale housing opportunities throughout rural residential exception areas. • Sewer Feasibility Study in Terrebonne: Terrebonne is served by a water district but does not have a community sanitary sewer system or utility. With the exception of two small, private systems serving two relatively new residential subdivisions, properties rely upon on -site sanitary sewer systems. Sanitary sewer system feasibility has previously been explored in Terrebonne, most recently in 1999 and prior to that in 1982. Although a community sanitary sewer system was deemed feasible in the 1999 study, the system was not pursued for a variety of reasons. According to data provided by the Environmental Soils Division, the number of malfunctioning septic systems appears to be increasing. Providing Terrebonne with sanitary sewer would not only provide a health and safety improvement for existing properties, it would also provide potential for additional development in the area. • Transportation Growth Management Grant Applications: The Community Development Department is awaiting to hear from the Oregon Department of Transportation regarding two grant applications: Tumalo Community Plan Update and Implement a portion of the Sisters County Vision Action Plan for rural trails. • 2020 Census: As previously noted, the 2020 Census is currently underway. The data emerging from the census in 2021 will provide the best available snapshot of the County and surrounding areas, and will allow deeper and more precise analysis of existing conditions. The data utilized in the Draft Housing Profile largely came from the American Community Survey, which is an interim product that provides estimates of certain geographies, usually limited to cities of a certain size. The 2020 Census data will allow a more fine-grained approach, drilling down into census tracts and block groups for analysis of sub -areas within the County. VII. INSTITUTIONAL CHALLENGES Although Deschutes County has numerous opportunities to expand residential development as noted in the sections above, it is important to note before committing to any specific initiative that some of these opportunities face challenges with respect to state law and the Oregon land use system. The Oregon land use system is designed to concentrate the majority of growth within urban growth boundaries; the following laws could potentially affect certain initiatives. • Goal 3, Agricultural Lands and OAR 660, Division 33 contains rigorous standards for siting a dwelling on EFU lands. Recent case law may limit nonresource lands opportunities (DLCD et al vs. Douglas County). Page 7 of 11 ORS 215.264 and OAR 660-033-0145 restrict land dividing EFU and Forest Use lands. • Goal 4, Forest Lands and OAR 660, Division 6 contains rigorous standards for siting a dwelling on Forest Use lands. Recent case law may limit nonresource lands opportunities (DLCD et al vs. Douglas County). • OAR 660, Division 4: Prohibits new rural residential areas from having a minimum lot size lower than 10 acres without taking an exception to Goal 14 (Urbanization). • ORS 197.455: New destination resorts are prohibited in Deschutes County once the City of Bend's UGB reaches 100,000 (24 air miles).4 • Goal 11 exception to allow sewer systems in South County regionally was remanded by LUBA in 2015. VI 11. NEXT STEPS To inform the Board's decision on a path forward, staff has identified four options for proceeding with a Rural Housing Strategy. A. Option 1 - Increase housing supply based on opportunities afforded by state law and County Code. CDD and Property Management staff would work directly with the Board to implement the actions identified in Table 3 below. Table 3. Opportunities Afforded by State Law and County Code 1. Rural Residential Dwellings Rely on the vacant lands analysis which identifies 4,329 of existing platted residential lots and the potential for 1,559 additional lots in the rural county. 2. Resource Zone Dwellings The vacant lands analysis did not consider resource zones due to a variety of factors, from determining whether a property is a legal lot of record to potential compliance with state land use standards. However, Deschutes County permits new dwellings in resource zones as allowed by state law. Deschutes County has the smallest EFU-zoned lot sizes in the state, meaning that land partitions may result in additional residential development through non -farm dwellings. Under state law, there are seven (7) ways to approve new dwellings in the EFU Zone and (4) ways to approve new dwellings in the Forest Use Zone 3. County -Owned Lands Audit County -owned lands to determine housing development potential in cities and rural areas, and then decide which properties to pursue for residential development. Notable properties include: • Newberry Neighborhood (Neighborhood 2, 2 quadrants; Neighborhoods 3 and 4). The County currently has an application submitted for a TGM grant to fund this project (status pending as of the time of writing). • Lands north of Juniper Ridge 4 Portland State University's Population Research Center certified estimate for the City of Bend for July 1, 2019 was 91,385. Page 8 of 11 4. Historic Rural Accessory Dwelling Units (ADUs) Historic dwellings in MUA, RR-10, SR 21/2, and UAR-10 zones on parcels larger than two acres are permitted to be converted to accessory dwelling units and one additional housing unit may be developed on a property. There are approximately 113 properties eligible for such units in the County; 2 applications have been submitted to date. The County could promote this program to the remaining properties. S. Plan or Text Amendments Non -Prime Resource Lands Amendment(s) are in process. Consider repealing the Conventional Housing Combining Zone that prohibits manufactured dwellings and mobile homes in certain parts of the County. Rural ADUs may be allowed in unincorporated communities under state law, but not under County Code. The County could amend Code to allow ADUs in some or all unincorporated community with siting and infrastructure standards. 6. Tumalo, Terrebonne, Unincorporated Communities Consider public -private partnerships, pilot project funding, or invest in infrastructure (i.e., sewer system) to support the development of small lots. Timeline: Three to six months to complete any code amendments. An initial audit of County -owned lands would likely take 1-2 months. B. Option 2 - Lobby the Legislature. The Board, Administration, CDD, the County's lobbyist and partner organizations would coordinate to develop the legislative concepts, engage local legislators, and lobby the Legislature to adopt these measures. Table 4. Opportunities Requiring Legislative Action 1. Allow rural ADUs in Rural Residential Exception Areas 2. Remove "pilot" from HB 4079 (large cities) and HB 2336 (small cities) to allow UGB expansions for mixed market rate and affordable housing neighborhoods. 3. Destination Resorts • Allow ADUs by not counting them as separate dwellings in the 2:1 or 2.5:1 residential to overnight lodging ratio requirements. • Allow affordable housing onsite for employees. 4. Manufactured Home Parks • Allow new and expanded manufactured home parks. • Allow manufactured home park lots to be subdivided and allow tiny homes rather than just manufactured homes. 5. Other Timeline: Begin immediately by engaging AOC and the County's lobbyist to prepare legislative concepts for the 2021 Legislative Session, and then lobbying through the Session's sine die. Page 9 of 11 C. Option 3 - Convene a Rural Housing Advisory Committee to review, discuss, revise and prioritize items identified above. A committee could be structured as follows: i. Establish a Rural Housing Advisory Committee (with or without a consultant) This committee could evaluate the causes and drivers of the region's housing shortage and recommend rural housing strategies that the County can pursue to help alleviate it in partnership with other organizations. Committee members could include representatives from the following: • Central Oregon Builders Association • Central Oregon Association of Realtors • Central Oregon Intergovernmental Council • City of Bend • City of La Pine • City of Redmond • City of Sisters • Economic Development for Central Oregon • Housing Works • Neighborlmpact • Central Oregon Homeless Leadership Coalition • Planning Commission (1-2 members) • Others Timeline: 3 to 6 months, concluding with an action plan. ii. Board/Planning Commission Panel Discussion The Board and Planning Commission could establish a series of panel discussions with invited guests from public, private, and non-profit sector organizations to similar to the marijuana panel discussions conducted in 2018: 1. Evaluate the housing profile developed to date. 2. Provide insights into the causes and drivers of the housing need and housing shortage. 3. Propose conceptual land use strategies and recommendations to address the County's housing need. 4. Other. This Committee could then determine next steps, including whether to create a Rural Housing Advisory Committee such as that proposed above or other courses of action. Timeline: 3 to 6 months, concluding with a summary report. D. Option 4 - Combine two or more options above for a new approach, such as: • Initiate Option 2; and • Select Option 3(i). or 3(ii) above with the charge to review and decide which opportunities in Table 3. Opportunities Afforded by State Law and County Code to initiate as well as to: Page 10 of 11 1) Provide insights into the causes and drivers of the housing need and housing shortage; and 2) Propose conceptual land use strategies and recommendations to address the County's housing need. Page 11 of 11 I ME RE v M aS Im ^^v cwoil.,f Lra s n F JJ r 4-2 y a? 4b� --------------- tar 0 A r zz� r a � s { z rf v. i, .�. r.. -01 tit) 0 oil i e a c / !y 3 { v� � ® g � i t � son a r r � ? e f!2 mm � P 4 k b 1 v� 2� l Fm as .2 r, w �2 M (v .2 o CD 0 w .2 r-, k-0 w CD .2 CD " M w m 00 . (N w W .— m I- (Z) w .2 1- C) c--) m CL 06 0- Ili CL 6 q 0.,,6 CL Lf) 0- 0 0- C� M d) Ln m 4) ud bp F- w n w N n CD cD -o bp � w DO bo (3 cu 0') ED d' w r,,,,i by cy) q) ED (5)0 d) 1-- (v 0 o-) (Y� cu Ln L. 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Laherty, Sr. Assistant Legal Counsel D. Adam Smith, Assistant Legal Counsel Amy Heverly, Assistant Legal Counsel David Doyle, Legal Counsel STAFF REPORT - BOCC Meeting 9/21/2020 Date: September 1, 2020 Re: DCC Amendments In 2016, IT approached Legal and CDD and asked if either department would be opposed to having the Deschutes County Code hosted externally. County staff was and remains very supportive of external hosting. In addition, current budgets in IT, Admin, CDD and Legal can fund external hosting. ($10,000 for initial transition and first year license and support; approx. $6500 annually thereafter.) External hosting will allow for a more streamlined county code and will provide for active links to county ordinances and other relevant legislative history. External hosting will save many hours of IT support staff time. Legal has worked extensively with IT and Admin and has identified Municode as the desired external host. [NOTE: Admin plans to transition to Municode for its agenda management platform/software.] The fee structure is such that before transitioning to Municode, it is prudent to complete all county code housekeeping amendments and clean ups. We will provide you with the proposed amendments and clean ups next month in advance of the required public hearing in November or December. We are targeting early - January 2021 for Go Live with Municode. ` 300 NVV VV a I S[r,,r,t Sri to 205 enc;, 0, ego- (1 7703 �� i54 )3886623 @ 1e,-,a1( <se16w)o('scII tes.org �nN�wc�e�c,� Es.o�g