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2022-141-Minutes for Meeting March 16,2022 Recorded 4/15/2022BOARD OF COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541) 388-6570 Recorded in Deschutes County Steve Dennison, County Clerk Commissioners' Journal 04/15/2022 9:32:33 AM 121141 CJ2022-141 III 111111 111111 1 Il FOR RECORDING STAMP ONLY BOCC MEETING MINUTES 9:00 AM WEDNESDAY, MARCH 16, 2022 Barnes Sawyer & VIRTUAL MEETING PLATFORM Present were Commissioners Patti Adair, Anthony DeBone, and Phil Chang. Also present were Nick Lelack, County Administrator; Dave Doyle, County Legal Counsel; and Sharon Keith, Board Executive Assistant (via Zoom conference call) This meeting was audio and video recorded and can be accessed at the Deschutes County Meeting Portal website www.deschutes.org/meetings CALL TO ORDER: Chair Adair called the meeting to order at 9:03 a.m. PLEDGE OF ALLEGIANCE: CITIZEN INPUT: Commissioner Adair acknowledged the citizen input received in support of saving Worrell Park, opposition of the Simpson Avenue RFP, and opposition of the Thornburgh development. Ron "Rondo" Boozell commented on being a dog owner walking his dog off leash and believes we are in a constitutional crisis. BOCC MEETING MARCH 16, 2022 PAGE 1 OF 9 CONSENT AGENDA: Before the Board was Consideration of the Consent Agenda. CHANG: Move approval of the Consent Agenda DEBONE: Second VOTE: CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried 1. Consideration of Board Signature of Order No. 2022-014, Declaring Certain Deschutes County Sheriff's Office Property Surplus and Authorizing Sale 2. Consideration of Resolution No. 2022-018 Correcting a Scrivener's Error in Resolution No. 2022-016 within the Deschutes County Budget 3. Consideration of Resolution No. 2022-019, to add 1.0 Regular FTE Maintenance Specialist II 4. Consideration of Resolution No. 2022-020, to add 1.0 regular FTE Administrative Assistant ACTION ITEMS: 5. PUBLIC HEARING: and Consideration of Order No. 2022-010, Approving Annexation to Panoramic Access Special Road District County Counsel Dave Doyle presented the staff report for the public hearing. Commissioner Adair called for public testimony, hearing none the hearing was closed. DEBONE: Move Board Signature of Order No. 2022-010 CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried BOCC MEETING MARCH 16, 2022 PAGE 2 OF 9 6. Consideration of Board Signature of Resolution No. 2022-021, Declaring a Countywide State of Emergency and Requesting State Declaration of Drought Emergency within all of Deschutes County Sgt. Nathan Garibay presented the Resolution for consideration via Zoom conference call. DEBONE: Move Board Signature of Resolution No. 2022-021 CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried 7. PRESENTATION: Envision Bend Laura Fritz, Executive Director and Steven Ames, NXT Consulting Group presented a report on the Bend Vision project. Presentation is attached to the record. Ms. Fritz asked for a $50,000 commitment from Deschutes County towards the project. The City of Bend has committed to $50,000 per Ms. Fritz. The funding request will be considered through project requests that are submitted for review in the upcoming budget meetings. 8. Consideration of Board Authorization of County Administrator on Deschutes County Investment Policy Chief Financial Officer Greg Munn presented the policy for annual review. CHANG: Move approval of County Administrators Signature DEBONE: Second VOTE: CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried BOCC MEETING MARCH 16, 2022 PAGE 3 OF 9 9. Deliberations: Dave Swisher Plan Amendment and Zone Change CDD Planner Kyle Collins presented the deliberations. Staff recommend supporting the hearings officer's decision. The Board considered criteria points. Assistant Legal Counsel Adam Smith was present via Zoom conference call. DEBONE: Move approval to accept the recommendation of the Hearings Officer Decision CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried Discussion held on land use planning for the future. CDD Planning Manager Will Grove commented on the zone changes involved with this item alone. County Administrator Lelack spoke on comprehensive plan changes, various policies and zoning changes. 10.Request Board approval and Chair signature of Document No. 2022-111, PacificSource Amendment #1 Shannon Brister-Raugust, Health Services and Business Manager Cheryl Smallman, presented the item for consideration via Zoom conference call. DEBONE: Move approval of Document No. 2022-111 CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried BOCC MEETING MARCH 16, 2022 PAGE 4 OF 9 11.Consideration of Board approval and Chair Signature of Document No. 2022-233, a PacificSource Service Agreement for funding services and persistent mental illness Kara Cronin, Behavioral Health Services presented the item for consideration via Zoom conference call. CHANG: Move approval of Document No. 2022-233 DEBONE: Second VOTE: CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried 12.Consider Options for Release of ARPA Funds for COVID Response Team Public Health Director Nahad Sadr-Azodi and Deputy County Administrator Erik Kropp presented. Presentation is attached to the record and Mr Kropp pointed out a few corrections needed for his report. Commissioner Chang recommended ensuring we are prepared to respond for the next surge of the pandemic. Commissioner Adair recommended to cut back on the phone system and assess it. The hotline hours will be revised to be shortened hours through the County but forwarded to the State. Mr. Sadr-Azodi reported on the staffing hour changes. Business Manager Cheryl Smallman reported on the use of ARPA funds for the temporary staffing in the department. Discussion held of temporary staffing for the hotline staff and whether they would be able to cross train and assist with the 911 Call Center. 911 Director Sara Crosswhite was present via Zoom conference call to provide feedback on the cross training concept. The Board reviewed funding for COVID response team services and noted there are funds coming from FEMA. DEBONE: Move approval of up to $35,000 per week at a maximum of three months of ARPA fund allocation for the COVID response team services. ADAIR: Second BOCC MEETING MARCH 16, 2022 PAGE 5 OF 9 Commissioner Chang's preference is to provide a broader application for our Health Services department. VOTE: DEBONE: Yes CHANG: No ADAIR: Chair votes yes. Motion Carried 13.Consideration of Chair Signature of Document No. 2022-251, OHA Agreement for biannual Public Health funding Public Health Manager Tom Kuhn presented the item for consideration via Zoom conference call. CHANG: Move approval of Document No. 2022-251 DEBONE: Second VOTE: CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried RECESS: At the time of 12:24 p.m. the Board went into recess and reconvened the meeting at 1:17 p.m. 14.CPACE Discussion and Possible Board Direction Deputy County Administrator Erik Kropp presented regarding the commercial property assessed clean energy program. If the Board supports the program, an ordinance would be drafted and staffing would need to be brought in to operate the program. Though this discussion is not a public hearing, Commissioner Adair asked for any interested public comments. BOCC MEETING MARCH 16, 2022 PAGE 6 OF 9 • Dirk VanHoeling presented comment and his interest in the program. • Perry Brooks presented comment and his interest in the program. • Paula Latasha, 350 Deschutes, presented comment on her interest in the program and spoke on behalf of interested stakeholders. Discussion held on staffing needs to manage the program and applications. CFO Greg Munn reported the staffing requirement would need to be .5 FTE. County departments do not have staff capacity at this time. Commissioner Adair recommended a remote option for a contracted staff. Paula Latasha, 350 Deschutes, offered their services for contract staff and mentioned that a stakeholder committee would need to be formed. Mr. Kropp suggested asking for city participation in the program. CHANG: Move approval to direct County staff to prepare an Ordinance and initiate a Public Hearing and prepare option for implementation of countywide CPACE Program DEBONE: Second VOTE: CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried. OTHER ITEMS: • Commissioner Chang reported on congressionally designated spending request option for community projects and suggested letters of support including the La Pine Community Health Clinic and a project creating an alternate access road in place of 4606 Forest Service road. Commissioner DeBone recommended considering the community that would be affected by this proposal. • Commissioner DeBone attended the Justice for Veterans program event as well as the 911 User Board Meeting. BOCC MEETING MARCH 16, 2022 PAGE 7 OF 9 • Commissioner Adair attended a virtual COHC meeting at 7:00 a.m. as well as a Portland State Zoom call regarding population statistics. • Commissioner DeBone reported on a new proposal for the budget for Association of Oregon Counties. • Commissioner Adair reported on upcoming AOC meetings. • Commissioner Chang mentioned the Environmental Center has an energy plan and he attended the workshop yesterday. • Commissioners Adair and Chang attended the Canal Commons tour yesterday. EXECUTIVE SESSION: The scheduled Executive Session under ORS 192.660 (2) (f) Records Exempt from Disclosure and ORS 192.600 (2) (h) Litigation has been rescheduled to Wednesday, March 30, 2022. At the time of 2:44 p.m. the Board went into Executive Session under 192.660 (2) (d) Labor Negotiations. The Board came out of Executive Session at 3:25 p.m. to direct staff to proceed as discussed. At the time of 3:25 p.m. the Board went into Executive Session under 192.660 (2) (d) Labor Negotiations. The Board came out of Executive Session at 3:39 p.m. to direct staff to proceed as discussed. At the time of 3:40 p.m. the Board went into Executive Session under 192.660 (2) (d) Labor Negotiations. The Board came out of Executive Session at 3:50 p.m. direct staff to support to proceed. At the time of 3:57 p.m. the Board went into Executive Session under 192.660 (2) (d) Labor Negotiations and ORS 192.660 (2) (a) consideration of employment. The Board came out of Executive Session at 4:22 p.m. to direct staff to proceed as discussed. BOCC MEETING MARCH 16, 2022 PAGE 8 OF 9 The scheduled Executive Session under ORS 192.660 (2) (i) Employee Evaluation has been rescheduled to Wednesday, March 30, 2022. ADJOURN Being no further business brought before the Commissioners, the meeting was adjourned at 4:22 pm DATED this (e Day of Commissioners. RECORDING SECRETARY 2022 for the Deschutes County Board of PATTI ADAIR, CHAIR ANTHONY DEBONE, VICE CHAIR PHIL CHANG, COMMISSIONER BOCC MEETING MARCH 16, 2022 PAGE 9 OF 9 BOARD OF COMMISSIONERS BOARD OF COUNTY COMMISSIONERS MEETING 9:00 AM, WEDNESDAY, MARCH 16, 2022 Barnes Sawyer Rooms - Deschutes Services Bldg - 1300 NW Wall St - Bend (541) 388-6570 I www.deschutes.org AGENDA MEETING FORMAT: The Oregon legislature passed House Bill (HB) 2560, which requires that public meetings be accessible remotely, effective on January 1, 2022, with the exception of executive sessions. Public bodies must provide the public an opportunity to access and attend public meetings by phone, video, or other virtual means. Additionally, when in -person testimony, either oral or written is allowed at the meeting, then testimony must also be allowed electronically via, phone, video, email, or other electronic/virtual means. Attendance/Participation options are described above. Members of the public may still view the BOCC meetings/hearings in real time via the Public Meeting Portal at www.deschutes.org/meetings 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: citizeninput@deschutes.org or by leaving a voice message at 541-385- 1734. Citizen input received by noon on Tuesday wi!l be included in the Citizen Input meeting record for topics that are not included on the Wednesday agenda. 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 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. For Public Hearings, the link to the Zoom meeting will be posted in the Public Hearing Notice as well as posted on the Deschutes County website at https://www.deschutes.org/bcc/page/public- hearing-notices. CALL TO ORDER PLEDGE OF ALLEGIANCE CITIZEN INPUT: Citizen Input may be provided as comment on any topic that is not on the agenda. Note: In addition to the option of providing in -person comments at the meeting, citizen input comments may be emailed to citizeninput@deschutes.org or you may leave a brief voicemail at 541.385.1734. To be timely, citizen input must be received by noon on Tuesday in order to be included in the meeting record. CONSENT AGENDA 1. Consideration of Board Signature of Order No. 2022-014, Declaring Certain Deschutes County Sheriff's Office Property Surplus and Authorizing Sale 2. Consideration of Resolution No. 2022-018 Correcting a Scrivener's Error in Resolution 2022-016 within the Deschutes County Budget. 3. Consideration of Resolution No. 2022-019 to add 1.0 Regular FTE Maintenance Specialist II 4. Consideration of Resolution No. 2022-020 to add 1.0 Regular FTE Administrative Assistant ACTION ITEMS 5. 9:05 AM PUBLIC HEARING: and Consideration of Order 2022-010 Approving Annexation to Panoramic Access SRD 6. 9:20 AM Consideration of Board Signature of Resolution No. 2022-021, Declaring a Countywide State of Emergency and Requesting State Declaration of Drought Emergency within all of Deschutes County 7. 9:30 AM PRESENTATION: Envision Bend 8. 10:00 AM Consideration of Board Authorization of County Administrator on Deschutes County Investment Policy. 9. 10:15 AM Deliberations: Dave Swisher Plan Amendment and Zone Change 10. 11:00 AM Request Board approval and Chair signature of Document No. 2022-111, PacificSource Amendment #1 March 16, 2022 BOARD OF COUNTY COMMISSIONERS MEETING Page 2 of 3 11. 11:10 AM Consideration of Board approval and Chair Signature of Document #2022- 233, a PacificSource Service Agreement for funding services for serious and persistent mental illness 12. 11:20 AM Consideration of Chair Signature of document #2022-251, OHA agreement for biannual Public Health funding 13. 11:30 AM Consider Options for Release of ARPA Funds for COVID Response Team LUNCH RECESS 14. 1:00 PM CPACE Discussion and Possible Board Direction 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. Executive sessions are closed to the public; however, with few exceptions and under specific guidelines, are open to the media. 15. Executive Session under ORS 192.660 (2) (f) Records Exempt from Disclosure and ORS 192.660 (2) (h) Litigation 16. Executive Session under ORS 192.660 (2) (d) Labor Negotiations 17. Executive Session under ORS 192.660 (2) (i) Employee Evaluation ADJOURN 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. March 16, 2022 BOARD OF COUNTY COMMISSIONERS MEETING Page 3 of 3 Sharon Keith From: Sent: To: Subject: Christie Veverka <cladoniarose@yahoo.com> Tuesday, March 8, 2022 11:51 AM citizeninput RFP for Simpson Avenue Some people who received this message don't often get email from cladoniarose@yahoo.com. Learn why this is important [EXTERNAL EMAIL] Dear Commissioners, 1 am, writing you in regards to the proposed sale and development of the greenbelt along Simpson Avenue. My neighbors and myself are frustrated and angry over the lack of transparency from the County with the RFP process. Considering the development of the land will have a dramatic and lasting impact to our small and modest neighborhood, I would expect the County to allow for some type of citizen involvement. I have asked the Board to have the County appoint a citizen representative(s) from the adjacent neighborhood to be a part of the selection panel for the RFP. This would allow for us to have a voice in the future of our neighborhood. The county has yet to provide a positive response to my request. I am aware that other citizens have written to the. Board regarding their concerns with the the Simpson RFP. I have similar concerns, particularly with selection criteria that does not address open space, tree preservation, bike pathways, or blending with the existing neighborhood. These are all factors that are so important to keeping the livability of the city we love. So far we have not heard a response from either Deschutes county or the Board of Commissioners regarding our concerns. This is even more frustrating. I am now requesting that the Board provide some type of written response to the many emails and testimonies that have been submitted for this issue. Once again, the lack of communication and transparency in this process is troubling and frustrating: Respectfully, Christina Veverka 0 BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Citizen Input can be given regarding any topic that is NOT on the agenda Public Testimony can be given during Public Hearings only Topic of Input or Testimony:N , �, p p Y Me* re o i \Vey Is this topic an item on today s agenda? ianon- Yes (please see description of Citizen Input above) No C-8 I Date: *(0/(Z)- Name Address ra "1471,4ty og Phone #s E-mail address rg0 booze,/ riPtt, THIS FORM IS TURNED IN TO RECORDING SECRETARY BEFORE MEETING BEGINS Are you submitting written documents as part of testimony? If so, please give a copy to the Recording Secretary for the record. Yes Sharon Keith From: Roger Fox <foxiron98@yahoo.com> Sent: Wednesday, March 9, 2022 2:48 PM To: citizeninput Subject: Worrel Park [Some people who received this message don't often get email from foxiron98@yahoo.com. Learn why this is important at http: / / aka.ms/ LearnAboutSenderldentification.] [EXTERNAL EMAIL] Hi There, I just became aware of the possible loss of Worrell Park, in favor of a VERY expensive multi story parking garage: Two things immediately came to mind, the first being, that this. Park was a gift to the city of Bend, and meant to be a Park...not a parking lot. I'm positive if you had asked Bill Worrell, what he thought about the possibility that somewhere down the road, you might turn it into a multistory parking lot, he might have withdrawn his gift! Even if you offered to name it after him! The second thing is why not put it over the top of one of the many existing parking lots, instead of blasting a natural rock feature down to the same grade as all the existing parking lots and THEN building it back up as a parking structure? This sounds expensive, dangerous, and downright backwards! Am I missing something? Please give this some serious thought before any decisions are made, and let the community know what's planned beforehand. Thanks, Roger Fox - foxiron98@yahoo.com Sent from my iPad i Sharon Keith From: Bryant Robey <bryrobey@gmail.com> Sent; Sunday, March 13, 2022 6:48 PM To: citizeninput Subject Worrell Park [Some people who received this message don't often get email from bryrobey@gmaihcom. Learn why this is important at http://aka.ms/LearnAboutSenderldentification.] [EXTERNAL EMAIL] l hope you can preserve this small but important piece of Bend -perhaps the best thing about making a visit to the country offices! It would be a poor decision to replace it with a parking lot. Ugh. Thanks for listening. i Sharon Keith From: Sent: To: Cc: Subject: Sheila Kelley <sheiladoylekelley@gmail.com> Monday, March 14, 2022 11:40 AM citizeninput Sheila Kelley; Mark Kelley Thornburgh Resort - State Land Sale [Some people who received this message don't often get email from sheiladoylekelley@gmail.com. Learn why this is important at http: / / aka.ms/ LearnAboutSenderldentification. ] [EXTERNAL EMAIL] Dear Deschutes County Commissioners: I am a resident of Sisters, OR, living off Highway 126 near the proposed Thornburgh Resort. I oppose the sale of state land to the resort developers due to concerns about water use; and, I request your support in making certain that, should this project proceed, it only do so after an updated environmental impact report and adoption of updated development restrictions consistent with the new findings. If, for some reason, this cannot be done, then at a minimum the project should be allowed to proceed only with active review and enforcement of the restrictions/commitments required by the 2007 development agreement. Residential wells are running dry in the area. We are in a sustained drought. The new demands that this proposed resort will make on our already depleted water resources are neither sustainable nor responsible. Your help protecting this limited resource is needed! Sheila Kelley 17295 Emerald Valley Road Sisters, OR 541-549-1087 Sent from my iPad i BOARD OF COMMISSIONERS AGENDA REQUEST & STAFF REPORT MEETING DATE: Wednesday, March 16, 2022 SUBJECT: PRESENTATION: Envision Bend •VE'VIEW 13 C CU CO c ri. .O (7)_ fp O c 49 WWoo bp O .E e. 0 49 -o '� chi c s o CO w C •- in Z >% W i O .D. CO co 15: • , • 1 II • ro ect su sorter ITZTCUMITIEririannillir's • 0 Z W CO Z 0 VI 5 Z W c •O .0 CU ..in c .4z-p 4) c > 3 _ E ✓ E •� V = 5- z = E O O O c V O •._ o. 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Ts Li_ c ...„ cu ci) w 0E • 42 0 u ._ -0 0 m c ago 'Aii s ' s.. .� co ii 0 > •- RS CU .S:2 E 4.a i Cimii C W Q biA OC OvIA 5 • • • c 0 tUA I 0 as O •- O) •- t• � t5 +a p ,� C "co,- - i i , as � O = C O •- O V �c N V = u CU 73 2 >% O = — v ..O .— a.+ E — >• • MINN O s- u • as to — - O -p 0= Q aj N C .0 ro 0. •tiJ � _ _ c a a O Ov co a.aU c o u >, E E 0 co Ca ,0 0- O b.A v c 5 > c > = C 46 8 c cu tto 0 :4.-3 cu 0 et° = MO OM cn a a ■ BOARD OF COMMISSIONERS AGENDA REQUEST & STAFF REPORT MEETING DATE: March 16, 2022 SUBJECT: Consideration of Board Authorization of County Administrator on Deschutes County Investment Policy. RECOMMENDED MOTION: Approve County Investment Policy F-10 and authorize County Administrator to sign the policy document. BACKGROUND AND POLICY IMPLICATIONS: The County is required to have its investment policy approved by the governing body annually. The policy was last approved by the Board in March 2021 at which time no changes were made to the policy. A review of the policy by our investment brokers, the state treasury and our Investment Advisory Committee suggested a few minor changes to clarify the policy language. Attached is the current investment policy with proposed changes noted and a clean version for approval. 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 State Treasurer's office stated that a review by the Short Term Fund Board was not required. BUDGET IMPACTS: The Board is required to approve the investment policy each year for the County to investment funds with a maturity beyond 18 months. ATTENDANCE: Greg Munn, Treasurer and Chief Financial Officer w 0 TES Deschutes County Administrative Policy No. F-10 { Effective Date: January 7, 2008 Revised Date: March 20, 2019 Revised Date: June 24, 2009 Revised Date: March 11, 2020 Revised Date: September 20, 2012 Revised Date: March 17, 2021 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 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 $160 million and $230 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 manage credit risk and interest rate risk. 2. 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 Policy #F-10, Investment Policy Guidelines Page 1 of 11 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 that "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. 3. Delegation of Authority and Responsibilities a. 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. b. 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 Treasurer and/or Chief Financial Officer, 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 Policy #F-10, Investment Policy Guidelines Page 2 of 11 trust. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and supporting procedures. c. 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. d. 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 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. a. Broker/Dealer fires must meet the following minimum criteria: i. Be registered with the Securities and Exchange Commission (SEC); ii. Be registered with the Financial Industry Regulatory Authority (FINRA). iii. Provide most recent audited financials. iv. Provide FINRA Focus Report filings. b. Approved broker/dealer employees who execute transactions with Deschutes County must meet the following minimum criteria: i. Be a registered representative with the Financial Industry Regulatory Authority (FINRA); ii. Be licensed by the state of Oregon; iii. Provide certification (in writing) of having read; understood; and agreed to comply with the most current version of this investment policy. c. 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: i. Pending investigations by securities regulators. ii. Significant changes in net capital. iii. Pending customer arbitration cases. iv. Regulatory enforcement actions. 2. Investment Advisers. A list will be maintained of approved advisers selected by conducting a process of due diligence. a. The following items are required for all approved Investment Advisers: Policy #F-10, Investment Policy Guidelines Page 3 of 11 i. 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) ii. All investment adviser firm representatives conducting investment transactions on behalf of Deschutes County must be registered representatives with FINRA; iii. All investment adviser firm representatives conducting investment transactions on behalf of Deschutes County must be licensed by the state of Oregon; iv. 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. b. 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: i. Pending investigations by securities regulators. ii. Significant changes in net capital. iii. Pending customer arbitration cases. iv. Regulatory enforcement actions. 3. Depositories. All financial institutions who desire to become depositories must be qualified Oregon Depositories pursuant to ORS Chapter 295. 4. Competitive Transactions a. 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. b. 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. c. 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. d. 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 County's name. Upon request, the safekeeping institution shall make available a copy of its Statement on Standards for Attestation Engagements (SSAE) No. 16. Policy #F-10, Investment Policy Guidelines Page 4 of 11 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: a. Compliance with Investment Policy. b. Control of collusion. c. Separation of transaction authority from accounting and record keeping. d. Custodial safekeeping. e. Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. f. Clear delegation of authority to subordinate staff members. g. Confirmation of transactions for investments and wire transfers in written or digitally verifiable electronic form. h. Dual authorizations of wire and automated clearing house (ACH) transfers. i. Staff training. j. 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). a. 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 of principal and interest. b. US Agency Obligations. Senior debenture obligations of US federal agencies and instrumentalities or U.S. government sponsored enterprises (GSE). c. Oregon Short Term Fund. Policy #F-10, Investment Policy Guidelines Page 5 of 11 d. Corporate Indebtedness. e. Commercial Paper issued under the authority of section 3(a)2 or 3(a)3 of the Securities Act of 1933. f. Corporate Bonds. g. Municipal Debt. h. Bankers Acceptances. i. Qualified histitution 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 a. 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. b. US Agency Mortgage -backed Securities. US agency mortgage -backed securities such as those securities issued by FNMA and FHLMC are not allowed. c. Securities Lending. The County shall not lend securities nor directly participate in a securities lending program. 4. Demand Deposits and Time Deposits a. 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. b. 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 managed by the following guidelines: a. 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. b. Recognized Credit Ratings. Investments must have a rating from at least one of the following nationally recognized statistical ratings organizations (NRSRO): Moody's Investors Service; Policy #F-10, Investment Policy Guidelines Page 6 of 11 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. c. 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 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. d. Exposure Constraints and Minimum Investment Credit Ratings. The following table limits exposures among investments permitted by this policy. Maximum % Holdings Minimum Ratings Moody's/S&P/Fitch! Oregon Revised Statue Reference US Treasury Obligations US Agency Securities Per Agency (Senior Obligations Only) Oregon Short Term Fund Bankers' Acceptances Time Deposits, Savings Accounts, Certificates of Deposit Per Institution 100% 100% 33% Maximum allowed per ORS 294.810 25% 50% 25% N/A A1+/P1/F1+ 25% maximum holding per ORS 294.035(3)(h)(C). Authorized by ORS 294.035(3)(d). Corporate Debt (Total) Corporate Commercial Paper per Issuer Corporate Bonds Per Oregon Issuer 25% 5% 5% All Other Issuers 5% Al/P1/F1 A2/A/A Aa3/AA-/AA- Municipal Debt 25% Municipal Bonds Aa3/AA-/AA- 35% maximum holding per ORS 294.035(3)(h)(D). 5% maximum holding per ORS 294.035(3)(h)(D). 5% max holding per ORS 294.035(3)(h)(D), A- min rating per ORS 294.035(3)(b). 5% max holding per ORS 294.035(3)(h)(D), AA- min rating for CA, WA & ID per ORS 294.035(3)(b). e. 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 manage liquidity risks: a. 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 30 days to provide sufficient liquidity for expected disbursements. b. 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. Policy #F-10, Investment Policy Guidelines Page 7 of 11 Portfolio investment maturities will be limited as follows: Total Portfolio Maturity Constraints: Minimum . % of Total Portfolio Under 30 days 10% or three months est. operating expenditures Under 1 year 25% 100% Under 5 years Weighted Average Maturity of Portfolio 2.0 years c. 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. d. 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. e. Limiting investment in a specific debt issuance improves secondary market liquidity by assuring there are other owners of the issuance. aximum % of Issuance (Par) US Agency Securities Corporate Debt Corporate Commercial Paper Corporate Bonds Municipal Bonds 50% 25% 25% 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 managed by providing adequate liquidity for short term cash needs, and by making longer -teen 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 manage adverse changes in the market value of the portfolio due to changes in interest rates: a. Where feasible and prudent, investment maturities should be matched with expected cash outflows to mitigate manage market risk. b. To the extent feasible, investment maturities not matched with cash outflows, including liquidity investments under one year, should be staggered to mitigate manage re -investment risk. c. No commitments to buy or sell securities may be made more than -1-4 21 calendar days prior to the anticipated settlement date or receive a fee other than interest for future deliveries. Policy #F-10, Investment Policy Guidelines Page 8 of 11 d. The maximum percent of callable securities in the portfolio shall be 25%; e. The maximum stated final maturity of individual securities in the portfolio shall be five years, except as otherwise stated in this policy. f. 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 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. a. 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. b. 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. c. 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: Policy #F-10, Investment Policy Guidelines Page 9 of 11 a. 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). b. Average maturity of the portfolio at period -end. c. Maturity distribution of the portfolio at period -end. d. Average portfolio credit quality of the portfolio at period -end. e. Average weighted yield to maturity (yield to worst if callable investments are allowed) of the portfolio. f. Distribution by type of investment. g. Transactions since last report. h. Distribution of transactions among financial counterparties such as broker/dealers. i. 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 Terrn 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. 3. 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 corning year. 2. 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 Policy #F-10, Investment Policy Guidelines Page 10 of 11 by this policy. 3. 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: a. 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(1)(b) and 294.135(3)). b. And either: i. This policy has never been submitted to the OSTF Board for comment; or ii. 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 Tom Anderson Nick Lelack County Administrator Policy #F-10, Investment Policy Guidelines Page 11 of 11 Deschutes County Administrative Policy No. F-10 { Effective Date: January 7, 2008 Revised Date: March 20, 2019 Revised Date: June 24, 2009 Revised Date: March 11, 2020 Revised Date: September 20, 2012 Revised Date: March 17, 2021 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 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 $160 million and $230 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 manage credit risk and interest rate risk. 2. 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 Policy #F-10, Investment Policy Guidelines Page 1 of 11 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 that "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. 3. Delegation of Authority and Responsibilities a. 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. b. 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 Treasurer and/or Chief Financial Officer, 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 Policy #F-10, Investment Policy Guidelines Page 2 of 11 trust. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and supporting procedures. c. 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. d. 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 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. a. Broker/Dealer firms must meet the following minimum criteria: i. Be registered with the Securities and Exchange Commission (SEC); ii. Be registered with the Financial Industry Regulatory Authority (F1NRA). iii. Provide most recent audited financials. iv. Provide FINRA Focus Report filings. b. Approved broker/dealer employees who execute transactions with Deschutes County must meet the following minimum criteria: i. Be a registered representative with the Financial Industry Regulatory Authority (FINRA); ii. Be licensed by the state of Oregon; iii. Provide certification (in writing) of having read; understood; and agreed to comply with the most current version of this investment policy. c. 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: i. Pending investigations by securities regulators. ii. Significant changes in net capital. iii. Pending customer arbitration cases. iv. Regulatory enforcement actions. 2. Investment Advisers. A list will be maintained of approved advisers selected by conducting a process of due diligence. a. The following items are required for all approved Investment Advisers: Policy #F-I0, Investment Policy Guidelines Page 3 of 11 i. 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) ii. All investment adviser firm representatives conducting investment transactions on behalf of Deschutes County must be registered representatives with FINRA; iii. All investment adviser firm representatives conducting investment transactions on behalf of Deschutes County must be licensed by the state of Oregon; iv. 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. b. 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: i. Pending investigations by securities regulators. ii. Significant changes in net capital. iii. Pending customer arbitration cases. iv. Regulatory enforcement actions. 3. Depositories. All financial institutions who desire to become depositories must be qualified Oregon Depositories pursuant to ORS Chapter 295. 4. Competitive Transactions a. 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. b. 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. c. When purchasing original issue 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. d. 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 County's name. Upon request, the safekeeping institution shall make available a copy of its Statement on Standards for Attestation Engagements (SSAE) No. 16. Policy #F-10, Investment Policy Guidelines Page 4 of 11 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: a. Compliance with Investment Policy. b. Control of collusion. c. Separation of transaction authority from accounting and record keeping. d. Custodial safekeeping. e. Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. f. Clear delegation of authority to subordinate staff members. g. Confirmation of transactions for investments and wire transfers in written or digitally verifiable electronic form. h. Dual authorizations of wire and automated clearing house (ACH) transfers. i. Staff training. j. 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). a. 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 of principal and interest. b. US Agency Obligations. Senior debenture obligations of US federal agencies and instrumentalities or U.S. government sponsored enterprises (GSE). c. Oregon Short Term Fund. Policy #F-10, Investment Policy Guidelines Page 5 of 11 d. Corporate Indebtedness. e. Commercial Paper issued under the authority of section 3(a)2 or 3(a)3 of the Securities Act of 1933. f. Corporate Bonds. g. Municipal Debt. h. Bankers Acceptances. i. 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 a. 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. b. US Agency Mortgage -backed Securities. US agency mortgage -backed securities such as those securities issued by FNMA and FHLMC are not allowed. c. Securities Lending. The County shall not lend securities nor directly participate in a securities lending program. 4. Demand Deposits and Time Deposits a. 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. b. 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 managed by the following guidelines: a. 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. b. Recognized Credit Ratings. Investments must have a rating from at least one of the following nationally recognized statistical ratings organizations (NRSRO): Moody's Investors Service; Policy #F-10, Investment Policy Guidelines Page 6 of 11 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. c. 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 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. d. Exposure Constraints and Minimum Investment Credit Ratings. The following table limits exposures among investments permitted by this policy. US Treasury Obligations Maximum % Holdings Minimum Ratings Moody's/S&P/Fitch 100% N/A Oregon Revised St Reference US Agency Securities 100% Per Agency (Senior Obligations Only) 33% Maximum allowed per ORS 294.810 Oregon Short Term Fund Bankers' Acceptances 25% A1+/P1/F1+ 25% maximum holding per ORS 294.035(3)(h)(C). Time Deposits, Savings Accounts, 50% Authorized by ORS 294.035(3)(d). Certificates of Deposit Per Institution 25% Corporate Debt (Total) 25% 35% maximum holding per ORS 294.035(3)(h)(D). Corporate Commercial Paper per Issuer 5% A1/P1/F1 5% maximum holding per ORS 294.035(3)(h)(D). Corporate Bonds Per Oregon Issuer 5% A2/A/A 5% max holding per ORS 294.035(3)(h)(D), A- min rating per ORS 294.035(3)(b). All Other Issuers 5% Aa3/AA-/AA- 5% max holding per ORS 294.035(3)(h)(D), AA- min rating for CA, WA & ID per ORS 294.035(3)(b). Municipal Debt 25% Municipal Bonds Aa3/AA-/AA- e. 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 manage liquidity risks: a. 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 30 days to provide sufficient liquidity for expected disbursements. b. 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. Policy #F-10, Investment Policy Guidelines Page 7 of 11 Portfolio investment maturities will be limited as follows: Total Portfolio Maturity Constraints: Minimum "%of gglissis#00tfolkok Total Under 30 days Linder 1 year Under 5 years 10% or three months est. operating expenditures 25% 100% Weighted Average Maturity of Portfolio 2.0 years c. 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. d. 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. e. Limiting investment in a specific debt issuance improves secondary market liquidity by assuring there are other owners of the issuance. Maximum % of ssuance (Par) US Agency Securities 50% Corporate Debt Corporate Commercial Paper Corporate Bonds Municipal Bonds 25% 25% 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 managed by providing adequate liquidity for short tern 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 manage adverse changes in the market value of the portfolio due to changes in interest rates: a. Where feasible and prudent, investment maturities should be matched with expected cash outflows to manage market risk. b. To the extent feasible, investment maturities not matched with cash outflows, including liquidity investments under one year, should be staggered to manage re -investment risk. c. No commitments to buy or sell securities may be made more than 21 calendar days prior to the anticipated settlement date or receive a fee other than interest for future deliveries. Policy #F-10, Investment Policy Guidelines Page 8 of 11 d. The maximum percent of callable securities in the portfolio shall be 25%; e. The maximum stated final maturity of individual securities in the portfolio shall be five years, except as otherwise stated in this policy. f. 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 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. a. 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. b. 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. c. 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: Policy #F-10, Investment Policy Guidelines Page 9 of 11 a. 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). b. Average maturity of the portfolio at period -end. c. Maturity distribution of the portfolio at period -end. d. Average portfolio credit quality of the portfolio at period -end. e. Average weighted yield to maturity (yield to worst if callable investments are allowed) of the portfolio. f. Distribution by type of investment. g. Transactions since last report. h. Distribution of transactions among financial counterparties such as broker/dealers. i. 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 Tern 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. 3. 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. 2. 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 Policy #F-10, Investment Policy Guidelines Page 10 of 11 by this policy. 3. 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: a. 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(1)(b) and 294.135(3)). b. And either: i. This policy has never been submitted to the OSTF Board for comment; or ii. 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 Nick Lelack County Administrator Policy #F-10, Investment Policy Guidelines Page 11 of 11 '(ES 0 BOARD OF COMMISSIONERS AGENDA REQUEST & STAFF REPORT MEETING DATE: Wednesday, March 16, 2022 SUBJECT: Deliberations: Dave Swisher Plan Amendment and Zone Change RECOMMENDED MOTION: Hearings Officer recommends approval of file nos. 247-21-000616-PA, 617-ZC pursuant to DCC 22.28.030. BACKGROUND AND POLICY IMPLICATIONS: The Board will deliberate on March 16, 2022 in relation to a request for a Plan Amendment and Zone Change (file nos. 247-21-000616-PA, 617-ZC) for two (2) 40-acre properties located on Abbey Road, approximately 1.3 miles east of the City of Bend, submitted by Dave Swisher. A public hearing was held on February 2, 2022 and the open record period associated with the request ended on February 23, 2022. The addresses associated with the subject properties are as follows: Property 1: Map and Taxlot: 171318C000100 Account: 109158 Situs Address: 63350 ABBEY RD, BEND, OR 97701 Property 2: Map and Taxlot: 1713180000600 Account: 106933 Situs Address: NO SITUS ADDRESS BUDGET IMPACTS: None ATTENDANCE: Kyle Collins, Associate Planner COMMUNITY DEVELOPMENT MEMORANDUM TO: Deschutes County Board of Commissioners (Board) FROM: Kyle Collins, Associate Planner Will Groves, Planning Manager DATE: March 9, 2022 SUBJECT: Deliberations - Dave Swisher Plan Amendment and Zone Change The Board of County Commissioners (Board) held a public hearing on February 2, 2022 to consider a request for a Plan Amendment and Zone Change (file nos. 247-21-000616-PA, 617-ZC) for two (2) 40-acre properties located on Abbey Road, approximately 1.3 miles east of the City of Bend. The Board is scheduled to deliberate on March 16, 2022 in consideration of the request. I. BACKGROUND The Applicant, Dave Swisher, is requesting a Comprehensive Plan Amendment to redesignate the subject properties from Agriculture to Rural Residential Exception Area and a Zoning Map Amendment to rezone the properties from Exclusive Farm Use (EFU) to Multiple Use Agricultural (MUA-10). The Applicant's reasoning for the request is that the properties were mistakenly identified as farmland, do not contain high -value soils or other characteristics of high value farmland, and therefore should be redesignated and rezoned for residential use. The Applicant has provided a supplementary soil study that identifies non -high value soils on a majority (-96%) of the subject properties. Additionally, the Applicant has provided findings within the burden of proof that demonstrate compliance with state and local requirements and policies. A public hearing before a Hearings Officer was conducted on September 21, 2021 with the Hearings Officer's recommendation of approval issued on November 24, 2021. The Board held a public hearing on February 2, 2022 and initiated a 21-day open record period, which concluded February 23, 2022 at 4:00pm. II. OPEN RECORD PERIOD During the initial 7-day segment of the 21-day open record period, staff received two (2) public comments as new evidence and testimony. During the second 7-day segment of the open record period, staff received one (1) rebuttal of the new evidence and testimony that was received. The Applicant's final legal argument was received on February 23, 2022 at the conclusion of the open record period. The new evidence and testimony received during the open record largely reiterated concerns and arguments that were raised during public testimony of the Board's public hearing on February 2, 2022. These concerns include: growth management, future potential development of the subject property, traffic impacts, and the validity of the Applicant's supplemental soil study in reclassifying the agricultural designations for the subject properties. The rebuttal testimony received during the open record period focused exclusively on the validity of the Applicant's supplemental soil study in reclassifying the agricultural designations for the subject properties. III. BOARD DELIBERATIONS On March 16, 2022, the Board will deliberate on the proposed Plan Amendment and Zone Change requests. If the Board finds that additional deliberations are necessary, the Board may schedule a future date for continued deliberations. If the Board finds no additional deliberations are necessary, the Board may then vote on whether to uphold or overturn the Hearings Officer's recommendation of approval. Per DCC Section 22.20.040(D), the review of the proposed quasi-judicial Plan Amendment and Zone Change is not subject to the 150-day review period typically associated with land use decisions. The full record is available for inspection at the Planning Division and at the following link: https://www.deschutes.org/cd/page/247-21-000616-pa617-zc-applicant-initiated-plan-amendment- and-zone-change Board Decision Matrix A more thorough review and discussion of the subject proposal's compliance with the applicable approval criteria and issues is provided in the associated Board Decision Matrix, prepared in conjunction with this deliberation memorandum. IV. NEXT STEPS If the Board determines that additional deliberations are necessary, staff will work with the Board to schedule a future meeting for continued deliberations. If the Board concludes their deliberations during the March 16, 2022 meeting, the Board may then vote on whether to uphold or overturn the Hearings Officer's recommendation of approval. If the Board renders a vote during the March 16, 2022 meeting, staff will coordinate with the Board to return for a future meeting during which a draft ordinance and relevant exhibits will be presented and a first reading of the ordinance initiated. V. SUGGESTED MOTION To the extent the Board decides to uphold the Hearings Officer's decisions, a motion as follows will likely be appropriate: The Board moves to accept the recommendation of the Hearings Officer for file nos. 247-21- 000616-PA and 247-21-000617-ZC in approving the proposed Plan Amendment and Zone Change. Page 2 of 3 To the extent the Board decides to modify or reverse the Hearings Officer's decision, that motion will need to be crafted to address the Board's specific concerns, as discussed in the deliberations. 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E 5 T O o a v ° o E o 0) N a,-' C O G) •c •t ` t 0 h0 0 O N d a- a) (0 V w Y �,�;=a >3 0 0 au N '6 F., .0 .a ° a) 2 C 2 a) Q< 16 +0) a Y m 0 Y° 0)01 a OD two O ON C N c a-, H c E 2 a m F3 ii on O non c N 247-21-000616-PA, 617-ZC BOCC Decision Matr BOCC DECISION MATRIX Staff Comment a) ro -C O as+ v •fl m v, :4) ,V > y 2,, A to al C fp 4 co .= ri s N m u vth ° c v u o d Y c c >, O O- o 0 ro pp 7 0 a E SO ro U N CO C_ .., -0 ry l0 m n E s of c o m m o Q v"iQO1-2 .aa u,.- CO 0 a) a) c N 3-0 x d C OA ra O V d u f.) < 0 v 4O Hearings Officer '-' c u r G OD w. E O - u c >-=- o_ E U i !0 ) C m o C ou i O C N -° �O N V 3 ao �O E ,a 'u a) -in v ._ N O- C a) N p c N a) 0 a) U a -O a) o E U a) ,-.4 o ro E ° E v -' v O 2 c m c E •� 93 j °, w c c c o o '� y 0 o O N r- u a o `0 .o ° c 0 >, C g 2 C al v c 0 0 p ai u c 0- 'G 0 to -0O v u C E ut 7 Y "0 O o .� m c m •X 3- ro m o m ati 0 2 o na 0_ . C ou 0°° ax) 3 c m a) -° 00' E O u c c ' .O , O vi ',To m 5 %v N E i a) 2 t ' N .E r. A =. m 'of>6 a t •E _ a v S, '� v cna v oN c.>u QL sa 0. o c c a 1a)- n O Y ui 0cs =....0E-' H vOi t si vs ° a a) a) v) The Hearings Officer found that the property does not include a wildlife overlay (WA) designation and, more importantly, no development is proposed at this time. The Hearings Officer further found rezoning the subject properties will not, in and of itself, impact wildlife and protections for wildlife must be sanctioned by the County's Goal 5 ESEEs and WA or similar wildlife overlay zoning (HO Decision p. 28, 72-73). Applicant and Oppositional Responses v m N 2c G. 2 . N m ro y, at,E2 f0 g a) 1- e 3 s f0 0 00 ''''c E E •N 4% C m _ > 00 m .>r ro V C L O 4) O c of E ^' . u Eta!' M° N C C E5— S d o O V=- O C V iuIhi N v o ..... 0. A ° ° 5 a o aa:-- E C C 2 o6 0 d • N v`0i t0 0) -0 a) O N in 0- GO 00 0 c a a'.., c 0 O O 0. ° ENo C o a d E 0. ° j� 4m G. 3 L The Applicant asserts that their submitted burden of proof addresses County Comprehensive Plan Goals for rural development, economy, transportation, public facilities, recreation, energy, natural hazards, destination resorts, open spaces, wildlife, and forest lands. Oppositional comments focus on preserving the subject property for perceived wildlife habitat value based on past wildlife sightings from neighboring property owners. Applicable Approval Criterion The opposition does not point to specific approval criteria associated with this issue area. -8 N o 0 3 C >. C 0 N ° O C 00_ N O u 0 M c 's v = ) M - O v, O j V, 0O 0 a) Lo 1.0 Y 0 -0 is 6. u a) _ < g 2_ 0 N m 0 .� a O @ O g .- m is 0) -0 a., Y '4 ti .' a) ° '� - O u N N a) . N .-E, '> 1L- °' > c o > I- Issue Area 0a 0) C 0 m E c E N ,- a) N 0 N .o = 0. N a :2 aL C C .u a)=> v U. 0. CO V°i Wildlife Impacts: The project may impact wildlife habitat and wildlife populations. M 247-21-000616-PA, 617-ZC BOCC Decision Matrix m BOCC DECISION MATRIX Staff Comment Hearings Officer Applicant and Oppositional Responses 0 Cc O O, t_° C 0 a1 to O C. i C a1 E N 7 °) N 0 u a o. m cn c v v Al v ' m _ 4 y t0 c cc Yu 0 flN 0 _ asY iT .c c0 0N . a+ _73 Lc, a Y O 0 TC �"a -0 O 7',,, -o O is'um Y — a IN c a v ° ° u O u o 5 .� o o .Q ° 0 O 01 Q N voi' 'C -O N 0 0 C y N u tl 0 0 G v v u 3 v a c— O O' 7 v y v c _ o o > u `m n 3 m O ¢, � E Y a v a_co -fl U m c L v o ,� a`° 0 m Y o v `° t o >• o v o= v o 7 m C n N m> '3 '� °= c°° a a y N v m o i N OA .c Y N O O C T .gym.. ''' U C °1 N c E 1- t° N T V Os n N u u N c o O = a o_E p c O N Y N n N o c .0 v- c � - m 7 u v o. o a a o w L O .Q 1 0 C O O 0 Z c p1 n O 7 O °� t- a n� ou oZ � uQ¢ as 7 `oup N tY a o O N n. yE V O N N , C/ C T O .0 G O N O O N U , '° C m N O ›....c E a C- c T 41 `n �^ m O ` L N L ,N-' j Q do a a 5 G. E O ON T 7 H O +L+ to p '�•7 c m vt c C'g m 4 L i0 '✓ C o N �/ n ut L •O a ti c �+ ` .a N O i° N O E ,L-+ -O ,L,, N> a a c 7- a' V 41 ,7. °1 o u c N a u O O •"u -a E T c 3 M m m N 9, O O , A w `p Y N N 7,1 U c 0 N 0 .O m a a E c To E> as m.;jt'" v IJ d ONN v o° "> ° �° c ,, c> E 8. v Lt_° u ON 7 0. f0 0 L N K .N-1 'L'' u N .fl C- 7 N `-° O O" , .' i m a g o V O u, .'-^ O • N O n O 0 0) an a+ m O an c >' L L y` - J E y, 0/ c W 41 O C ,1) tl0 .O N ,n n '5 ' .N m 7, . m ,•, , _ p N 7 ,L.. 'L m j C ,n m 0 c a K C u a c o =1 i c ,r.. a +. U 'n L L N o 0 m m C n c. •� °/ i 1/1 N n .0 O m v, a= T a a` u, c „:, .. u> 1.- c 0 "o d o n ,'. m • ,n Z c 3.0 v n y y m a= o o m m c o a u N ? U 7 m.- i 7 p °Ci . E CO u U= 0 0- . N o 0 u, D O L .� VI C c v a o 0_ ..0 '^ N h 2 m m o `N° � c 23 v° p v CO ¢ Z m - o T o cmi °� c u _ . o u d a :° u m a 0✓ V at25 C E m"' -c C V °• ci = v m 0 •v., c c .O fl. M> _u ¢ • N N • U N 2 ++v7i o c m U O t• °1 0> Q O T., N N O u p N 7 13G V N m— n m ` o_ c.1 ,-i m n a c m -.,-<' co co 0 O - ,° N C N M a. -CF.. L O o- O o O s n C 5 L yo,� ,L.+ a a W ,... p L m m M bA ,.. M¢ t° m a O o. ¢ CO U m l0 ut ut W u M O V m T t cc o ¢ • 0 0.▪ 003 y o v a .E Q c �o m ~ o IT _ ov o y a �, o m O ✓ v E„. E N 247-21-000616-PA, 617-ZC BOCC Decision Matrix BOARD OF COMMISSIONERS AGENDA REQUEST & STAFF REPORT MEETING DATE: March 16, 2022 SUBJECT: Release of ARPA Funds for COVID Response Team RECOMMENDED MOTION: Release funds as determined by the Board BACKGROUND AND POLICY IMPLICATIONS: On February 9, 2002, the Board approved up to $350,000 for the next round of ARPA funds to support the COVID Response Team. The Board approved up to $55,000 per week through the end of March 2022. The COVID Response Team is comprised of 6.0 limited duration (staggered end dates) FTEs and temporary employees. The COVID Response Team has adjusted expenditures based on the demand for services. The recent "Management of Pandemic Case Investigation and Contact Tracing audit concluded the following (page 11, section 2.1 of the audit): "Overall temporary worker costs being spent through Public Health - Communicable diseases (and the primary temp worker vendor) have moved with the surges of the pandemic." The most recent weekly (beginning of March 2022) temporary staffing cost was $32,000, although the Board approved of expenditures of up to $55,000 per week. In addition, the Health Services Department recently discontinued the practice of paying COVID premium pay which compensated salaried employees for consistently working well beyond a regular work week. Board Policy Discussion Based on COIVD Response Team's reduced costs (due to adjusting to the demand for services) and additional FEMA reimbursement, the current Board APRA fund approval is estimated to cover costs until late April 2022. For temporary staffing for COVID response, the Board has allocated a total of $ 2,350,000 and authorized expenditures of up to $1,971,705. Therefore, $378,295 remains for COVID temporary staffing, which will fund the current temporary staffing levels (at a rate of $55,000 per week) for at least for another 7 months. Board policy discussion/decision: 1. What is the "up to" amount the Board wants to authorize per week? a. Up to $55,000 per week. b. Up to $30,000 per week. c. Other Listed in the staff report below are the service impacts associated with the options listed above. 2. How long does the Board want to approve the weekly "up to" amount? a. 1 month b. 2 months c. 3 months d. other Attached are statistics related to the Covid Hotline. COVID Response Team The COVID Response Team provides and/or coordinates the following: 1. COVID Hotline: provides public education/information, outreach and data. 2. Testing: manages outbreak testing, distributes test kits to high need individuals and entities, provide onsite support for high consequence settings (such as congregate settings, day care, schools, and businesses) and situations requiring testing. 3. Vaccination: community clinics, targeted clinics, mass vax events (not currently holding mass vax events). 4. Outbreak response for high consequence settings (such as congregate settings, day care, schools, and businesses). 5. Wrap around support services and isolation motel service delivery: manage all requirements and priorities at isolation motel (hot meal delivery, food box delivery, medication delivery, security, etc.), case management and support, collaborate with non -profits for placement at the motel. Scenario where demand continues to drop: • We could continue to balance staffing with service level. In other words, we could either eliminate some temp positions or increase service level (or some permutation). Scenario if there is a surge: • We could increase our temp capacity compared to our current level with the understanding that it will take 4 to 6 weeks to get capacitated. If we are in a low demand scenario, then it will take longer than 6 weeks to build capacity. Key tradeoff: • Letting too many temps go, it will take 4 to 6 weeks to ramp up (identify, hire, train, etc.). Also, reliance on the state and/or other entities does not take form overnight, it takes weeks (especially as demand throughout the state has increased). Baseline Services Baseline services and operations service delivery will continue regardless of service level (position duration). Service Delivery: • Coordinate with community partners and OHA to plan and execute events like testing and vaccines • Strategic governance of budgeting and funding support to properly disseminate funds • Contract oversight with vendors and community partners (i.e. facilities, medical teams) • Admin support for each service delivery line (i.e. document control, project management, meeting organization) • Testing support (i.e. organizing and planning at-home test kits distribution) Service Level: • Provides timely and quality support for all areas • Consistent coordination between internal and externals teams and service lines • Minimal burden on County and DCHS Administration Limited Duration Positon: 6 (5 + 1 Recovery Manager) What —55k per week (current service level) provides the County? This is the current expenditure which facilitates high level services (commensurate with demand). A. Hotline, Public Education/Information, Outreach, and Data: Service Delivery: Public information, distribution and education: connecting to vaccine information/sites, testing information and resources • Connection to Wrap Around services and CBO's for services: food resources, mortgage and utility assistance, lost wage assistance • Connection to highly trained case management team to identify, process and refer to escalated services/resources (e.g LTCFs, businesses, schools, etc.) • Onsite outreach for BIPOC and other vulnerable groups, and/or individuals, and businesses • Preparation, analysis and reporting out data: cases rates, outbreaks, vaccination rates & testing volume • Regular social media and dashboard updates (up to 15,000 public hits/week) Service Level: • Call Center Schedule: 10 hours M-F (8am-6pm), 6 hours on Saturday (10am-4pm), check voicemails Sunday o Up to a 4 minute wait time o Not offering 24 hour support service • Call Center increases accessibility to those who are not comfortable and/or with limited Internet/ technology capabilities to address DEI/socioeconomic challenges • Outreach Schedule: 7 days/week o Multi -language (3 languages) team reaching up to 500 community contacts/month Data: providing timely, accurate, quality information to the public and on public facing media sites Current Staffing - Limited Duration: 2.0 Temp FTE equivalency: 9.5 B. Testing Service Delivery: • Manage outbreak testing though OSPHL and other entities • Distributing test kits to high need individuals (e.g. homeless) and entities o Distribute both "lab" tests and home tests • Provide onsite support for high consequence settings and situations requiring testing Service Level: • Highly focused on congregate setting testing, respond within hours/ day • Facilitation and community assurance around testing capacity in the community (serve as community hub) • Not offering high throughput or community testing events Current Staffing: • Limited Duration: 0 • Temp FTE equivalency: 1 C. Vaccination Service Delivery: • 4 Standing community clinics/week (locations include: Bend, La Pine, Sisters) • Capacity to provide other targeted clinics as needed, example: o Pediatric clinics o Employee clinics o Redmond Airport o County staff o Equity informed efforts (settings like: nonprofits, Latino Community Association, local restaurants, low income housing) o Congregate settings (e.g. homebound, jails, LTCF, etc.). o Interpreters/translators for community accessibility. • Mass Vax population events (through coordination with OHA/ FEMA) Service Level: • Schedule: consistent days/times and evening hours o Current wait time less than 20 minute (during high volume, up to 1 hour) o Productivity up to 1600 vaccines/week • Collaborate with communities to set up clinic events • Increase accessibility with a DEI lens (e.g. rural settings) • Interpreter/translating: offered at each vaccine clinic and translates all COVID- related materials (in-house) Current Staffing - Limited Duration Positions: 3 Temp FTE equivalency: 9 D. Outbreak response for high consequential settings (e.g. congregate settings, day care, schools, and businesses) Service Delivery: • Case Management for individuals (high risk/need or linked to outbreak) • Infection prevention and outbreak management • Business outreach and educational outreach to businesses through community business partners like Chambers of Commerce, Business Advocates and other business organizations Service level: • Schedule: offering services 7 days/week, respond within hours • High quality, reliable, specialized services and consultancy • Consultants to these groups/ quasi -enforcement/ regulatory body Current Staffing - LTD: 4 Temp FTE equivalency: 8 E. Wrap around support and Isolation Motel Service Delivery: • Management of all requirements and priorities at isolation motel sites: high priority needs, hot meal delivery, food box delivery, medication delivery, security, etc. • Case management and support, and referral to CBO's for collaborative support services Service Level: • Schedule: offering services 7 days/week (all day) • Case management capacity: O 40 clients/ households/week (including isolation motel) o Serve up to 600 individuals per month - mix of DCHS and CBO support (some duplication with above) • Availability of up to 12 isolation rooms/16 beds (and Super 8 Redmond overflow: 8 rooms, 13 beds) Current Staffing - Limited Duration Positons: 3 Temp FTE equivalency: 4 What -30k per week (current service level) could get the County? This is assuming same demand level as current state with varying service level. A. Hotline, Public Education/Information, Outreach, and Data: Service Delivery: • Public information, distribution and education: connecting to vaccine information/sites, testing information and resources • Connection to Wrap Around services and CBO's for services: food resources, mortgage and utility assistance, lost wage assistance • Connection to highly trained case management team to identify, process and refer to escalated services/resources (e.g LTCFs, businesses, schools, etc) • Onsite outreach for BIPOC groups, and/or individuals, and businesses • Preparation, analysis and reporting out data: cases rates, outbreaks, vaccination rates & testing volume • Regular social media and dashboard updates (up to 15,000 public hits/week) Service Level: • Hotline Schedule: 8 hours M-F (9am-5pm), Saturday: only check voicemails & no services on Sunday o Reduced hours and days o Wait time and drop calls will increase • Outreach Schedule: reduced from 7 days/week to 5 days/week with reduced hours • Outreach accessibility reduced from 3 languages to only Spanish • Data quality remains consistent Change in Staffing: LTD: 2.0 Temp FTE equivalency: 7.5 B. Testing Service Delivery: • Maintain only minimal outbreak testing response • Minimal distribution of free rapid testing supplies • No additional community testing and/or technical support for community entities Service Level: • Will not provide high throughput or community testing events • Provide remote technical assistance with limited onsite support Change in Staffing - Limited Duration Positions: 0 Temp FTE equivalency: 0.5 C. Vaccination Service Delivery: • Standing community clinics/week (locations will vary) • Assist with targeted clinics: o Pediatric clinics o Congregate settings (e.g. homebound, jails, LTCF, etc) (with interpreters/translators for community accessibility) • Facilitate mass vax population events (through coordination with OHA/ FEMA) Service Level: • Schedule: reduce days and/or hours of operation (decisions based on demand, access and equity) • Equity focus on the community clinic • Reduce vaccine productivity up to 1,000 doses/week (from 1600 doses) o potential increase in wait times depending on volume Change in Staffing - Limited Duration Positions: 3 Temp FTE equivalency: 6 D. Outbreak response for congregate settings and businesses Service Delivery: • Case Management for individuals (high risk/need or linked to outbreak) • Infection prevention and outbreak management • Business outreach and educational outreach to businesses through community business partners like Chambers of Commerce, Business Advocates and other business organizations Service Level: • Schedule: reduced from 7 days/ week to 5 days/ week • Limited comprehensive case management for high risk individuals • Limited business outreach Change in Staffing - Limited Duration Positions: 4 Temp FTE equivalency: 4 E. Wrap around support and isolation motel Service Delivery: • Management of all requirements and priorities at isolation motel sites: high priority needs, hot meal delivery, food box delivery, medication delivery etc. • case management and referral to CBO's for collaborative support services Service Level: • Schedule: Maintain 7days/week with reduced hours to 10-3pm • Increase in wait time for referrals and placement, impacting hospital system's bed capacity • Case management capacity: o -30 clients/ households/week (including isolation motel) o Serve up to 400 individuals per month - mix of DCHS and CBO support (some duplication with above) • Availability of 9 isolation rooms/13 beds at Super 8 in Redmond Change in Staffing - Limited Duration Positions: 3 Temp FTE equivalency: 0 BUDGET IMPACTS: Budget impacts depend on Board policy decision. ATTENDANCE: Erik Kropp, Interim Health Services Director Nahad Sadr-Azodi, Public Health Director Cheryl Smallman, Business Manager Deschutes County COVID-19 Hotline Overview: Situation: Currently the Hotline is open the same hours that the OHA Line is open. This way OHA can transfer community members directly to us for support services. • Monday -Friday: 0800-1800 • Saturday: 1000-1600 • Sunday: VM is checked between 10-1600 Our focus on the Hotline continues to be vulnerable populations; like our community seniors, those less technologically savvy, without reliable internet and/or limited internet access, BIPOC, etc. **We are able to access verified data for the previous month on the 15th of each month** Current Month Highlights: • Average call time is almost 6 minutes • Average wait time is <2 minutes • 100% of VM's left are returned within the same business day • Longest call time was 41 minutes • Busiest times are early in the week and in the earlier half of the day • Majority of our calls are received between 0800-1400 (higher core staff during these times) Impressions/Feedback: Some community members have provided feedback that they could easily find the Hotline number at the beginning of the pandemic (it was on billboards in Redmond and Bend for what seemed like months), they had difficulty finding it now and they have many more questions now. Food for thought, on how we market/raise awareness. December Data: 1,561 Total Calls Trend 125 0110C 50.35 Avg Cstis/Day 1,332 A Inbound 229 A Outbound 2.9 i ;sec] U,tVlvi) f 00)0J C01, v+ ra g AnswrlcG ',.2 Dom' 03:58 Avg lima) Tune ;9 January Data: 2236 Trend 150 72.13 A, Calls/Day 1,686 Inbound January 15- February 15 Data 'Most Recent** 1,377 TotalCaEIs Trend Last Quarter: 4,492 total Cail, Trend 206 1!2) so 43.03 Avg Cails/Day 49.91 Avg CalsjI)sy 1,009 Inbound 3,564 4 inb.nd 550 6.4% 05:08 4 Outbound % Missed (w/VM) Avg Handle Ttnle 368 Outbound 928 Outbound 12, **Reflects busier times earlier in the week/earlier in the day** • Toial Cafis v S 4 Answet2,1 22 .3,1 05 {kW 7.2% % M:gted (,,VM) 05:31 Avg handle Time • lot al Cees v , 4,2.4,1 v 5 2% (.,./vm) 04:50 A, Handle 1 ime • 0 4 Aree.wked k Week Week Les ...c ro G bA c a) 2 L-- N va N O p CO N 0) 0) c 0 tl) (1) tryry L) (J Z c 0) `-) ;J if b 0) 25 O a. E O 4- 4— To O 4J a) to co ® is To tn co u S7. CO 0 Er a) W. In co 0 N N O u tt5 4- 0 ' O b.0 c4.1 On as u aU boo u 0 tA O i E E a) LEL cO u w b.0 C o. i O cn ( u a) o•— >, CVO CI- (6) E "L": .0 cu CU to co O e O O a) u >, • ro 0 11 c▪ u 0 4J N 0 4-1 CL• ) G) fa 0 4-1 -C 4-) 4-) a.) ro 0 Cl. ro ro 0 4-1 a) 4-1 -C C a$ 4-1 = 73 (1) (t) ro 0 ro s„, CO . (1) 6 a) -0 CA, 4-) C) C) +-▪ 1 0- CD CD cr) if) CD 0 V) (i) a) in en "Cs (: ,s::: .0 VI-- til 0.0 V) 0 0 Cli C ) 0 0 (1) .„ ET E E „E 4_1 ci ci 4----I: , -C .A.0,---S (t1 D D 0 5 c \I CO g El 1 vA m BOARD OF COMMISSIONERS AGENDA REQUEST & STAFF REPORT MEETING DATE: March 16, 2022 SUBJECT: CPACE Discussion and Possible Board Direction RECOMMENDED MOTION: Provide staff direction. BACKGROUND AND POLICY IMPLICATIONS: On December 6, 2021, staff presented to the Board the Commercial Property Assessed Clean Energy (CPACE) concept. This staff report provides an update on items the Board requested as well as other general updates. CPACE OVERVIEW Commercial Property Assessed Clean Energy (CPACE) is a funding mechanism to pay for clean energy projects. CPACE programs vary based on specific state and local government guidelines. Generally, the mechanics work as follows: a commercial building owner receives long-term financing for capital improvements that reduce energy consumption or generate energy. The building owner repays the cost of eligible improvements through a benefits assessment (similar to a local improvement district assessment). FOLLOW-UP and OTHER UPDATES Below is a list of follow-up items and other updates since the Board's discussion on CPACE in December. • Questions about Benton County and the City of Corvallis CPACE efforts. See attached memo from County Counsel Dave Doyle dated December 10, 2021. Benton County and the City of Corvallis are not currently adopting jurisdiction -specific CPACE programs. Instead, they have determined that a single statewide program would be more efficient, provide more funding opportunities, allow more people to use the program, and reduce costs with a single administrator. • Discussion with 350 Deschutes that Michael Yaki, Senior Vice President and Sr. Counsel for Petros PACE Finance, LLC has offered to provide model Oregon CPACE Local Program document - see attached memo dated January 13, 2022 from County Counsel Dave Doyle. • Input from County Assessor Scot Langton on CPACE administration - see attached memo dated February 3, 2022 from Scot Langton. • Commissioner Chang recently asked for a list of possible CPACE projects that may be ready to go should the program be approved. In response, staff reached out to business that have contacted the Board about CPACE as well as to 350Deschutes. "Attachment A" lists potential projects as reported by businesses and individuals who have contacted the Board. • Commissioner DeBone asked how CPACE financing mechanics work versus a traditional bank loan. "Attachment B" shows a side by side comparison of funding energy conservation projects via bank loan compared to a CPACE lien. C-PACE OPTIONS The following are options for Board discussion/consideration: 1. Status quo - not move forward with CPACE. • Pros: o Allows time for Oregon CPACE programs to mature. The County could see if a statewide program moves forward and/or see how other CPACE program perform. o With rapid development already occurring in Central Oregon, the program may not be necessary to spur development. o Maintains the intended purpose and use of the property tax system. o Doesn't change the order of lien holders on a property. The CPACE assessment becomes senior above any other liens. o Not all CPACE program have been successful. Some have resulted in no projects or a low number of projects. The Clark County, Washington program has been identified as a model program. However, the state of Washington has requirements for commercial building energy efficiency measures which increases demand for CPACE projects. • Cons: o Missed opportunities to fund projects that may be ready to go now. o Program provides incentives for energy conservation that may not happen without CPACE. 2. Establish the tax assessment process and allow interested cities to set up CPACE programs for their jurisdiction. • Pros: o Most CPACE development will occur in cities, let cities implement CPACE if they are interested. • Cons: o If individual cities implement CPACE, there may be a lack of uniformity and missed opportunity to pool together staff resources for one program. o Implementation will likely take longer as compared to option 3. 3. Set up a Deschutes County CPACE program for projects in the rural county and identified cities. If this option is selected, then decide whether to: a. Find a third -party to operate and manage the program. For example, Multnomah County contracts with Prosper Portland (formerly the Portland Development Commission) to manage its program; or b. Move forward with CPACE with a mix of using Deschutes County staff and a third -party administrator; or c. Explore the possibility of forming a consortium of Oregon cities/counties to operate and manage the program. • Pros: o Provides uniformity for CPACE within Deschutes County. o Sooner implementation than options 2 or 4. • Cons: o As CPACE programs are implemented in other parts of Oregon, there may be a lack of uniformity among the programs. o The County would take the lead on a program that is likely to have a majority of projects in the cities. o Additional county resources required to implement and manage program. 4. Wait for a statewide CPACE program. There is a consortium of Oregon cities/counties that are meeting regularly to discuss a path forward for a statewide program. • Pros: o A statewide program would provide uniformity, efficiencies, more financing opportunities, and reduce administration costs. • Cons: o Less local control. o No guarantee that a statewide program will develop. o If it did, longer timeline before the program is up and running, possibly missing out on projects that are ready to go now or in the short run. If the Board directs staff to implement options 2 or 3, the Board will need to direct staff to first prepare a draft ordinance for Board consideration and possible adoption. Also, if the Board adopts a CPACE ordinance, staff anticipates needing several months to develop the program and materials before accepting applications as well as adding additional staff capacity to start up and manage the program. CONCLUSION Staff will lead the discussion and seek Board direction on CPACE. BUDGET IMPACTS: TBD, based on Board direction. ATTENDANCE: Erik Kropp, Deputy County Administrator Scot Langton, County Assessor Greg Munn, CFO/Finance Director COUNTY LEGAL Christopher Bell, Sr. Assistant Legal Counsel John E. Laherty, Sr. Assistant Legal Counsel D. Adam Smith, Assistant Legal Counsel David Doyle, Legal Counsel STAFF REPORT TO: BOCC FROM: County Legal DATE: December 10, 2021 RE: C-PACE Following the Board meeting on December 6`h, I reached out to Benton County and the City of Corvallis. Neither is adopting a jurisdiction -specific C-PACE program. Benton County and the City of Corvallis have determined that a single statewide program would be much more efficient, providing more financing opportunities, allowing more people to use the program, and reducing costs with a single administrator. Ongoing efforts (minimal according to County Counsel) are directed at participating in a statewide program. I also reached out to Michael Yaki, SVP and Sr. Counsel for Petros Pace Finance. He is not a proponent of the statewide approach, telling me: "If there are property owners who would be ready to utilize CPACE in short order, the time that would be required to put together a statewide program administrator (ie, who would it be, under what criteria, and what would be the criteria of a program) are time consuming and expensive (and explains the high fees often associated with such entities to recover costs)." Mr. Yaki prefers local programs, telling me: "The program does I put together for communities, such as those in Washington state and others, are tailored to reduce the administrative burden on local governments. In our experience, the set up is minimal (enactment of an ordinance) and designation of an official to review and approve an application. The application itself is simplified to be a "check the box" review. For example, a fairly complicated transaction that would result in $19M in CPACE financing was approved in a few hours of review. In return, to compensate the locality for the time and effort spent reviewing the ordinance and documents, a processing fee of 1 % of the amount financed, capped at $15k, is often a reasonable exchange." Mr. Yaki has promised to send me a packet of documents to review by early January. In addition, on the issue of default/foreclosure he shared this: "Only the delinquent installments are subject to foreclosure, not the balance which runs with the land. Since lender consent is required, the likelihood that the lender will step in to cure is high and avoid foreclosure. Nationwide out of 1500+ high value (over $1 M) there has been 1 default and no foreclosures." 1 300 NW Wail Street Suite 205 Bend, Oregon 97703 k1 (541) 388-6623 @ legaleounsekcdeschutes .org # i' www.deschutes.org COUiNT.Y LEGAL Christopher Bell, Sr. Assistant Legal Counsel John E. Laherty, Sr. Assistant Legal Counsel D. Adam Smith, Assistant Legal Counsel David Doyle, Legal Counsel STAFF REPORT TO: BOCC FROM: County Legal DATE: January 13, 2022 RE: CPACE As promised, Mr. Yaki, SVP and Sr. Counsel for Petros Pace Finance sent me a packet of Model Oregon CPACE Local Program documents. 1 have completed my review, and if the BOCC is inclined to launch a local CPACE program, 1 am comfortable recommending adoption and utilization of the Model Oregon CPACE Local Program documents. The system is essentially a "check the box" model which shifts all burden, risk and liability to the property owner and capital provider. The County operates as a conduit for the transaction and is compensated for associated staff time. 300 NW Wa!I Sn eo 5uit(' 7.0!) Bend, 91 /03 tom. (': i) 388 6623 @ I ,);aI(-o nselO',Jc t i_i rlit5 Cox t' vvs:N.(.ies it _ to or�; Assessor's Office Scot Langton, Assessor 1300 NW Wall St, Suite 200 Bend, Oregon 97701 (541) 388-6508 FAX: (541) 330-4629 www.co.deschutes.or.us February 3, 2022 To: Erik Kropp, Deputy County Administrator From: Scot Langton, Deschutes County Assessor RE: CPACE Erik, You had asked for feedback from my office regarding the administration of a proposed CPACE program. As you probably remember from earlier conversations, Assessors typically have a limited role regarding administration of the program; though that could vary depending on how it's adopted. If the County adopts a CPACE program that provides for billing and collection through the property tax statement, this Office would become involved in just those cases where an individual property was in default of the loan agreement. In those default scenarios the lender would certify to the Assessor's Office the amount of loan delinquency, which would be placed as a lien on that property and billed on the next appropriate tax roll by adding that amount as a collectable on the tax statement. The collection of those outstanding default amounts would be billed and collected by the Tax Collector's Office in the same manner as the other outstanding property taxes, which could lead ultimately to tax foreclosure if not paid timely. Therefore if I understand the proposed County ordinance correctly the involvement of my office would simply be to post as a collectable lien those amounts that were outstanding. This would have minimal resource requirements for this office. Though it should be noted that if the County is proposing to utilize the property tax statement for the primary collection of annual loan payments and not just limited to those that are in default, such a system will have much more significant impacts on resources which will necessitate additional analysis to identify impacts and costs. Attachment A Local CPACE Interest The following pages summarize CPACE interest from: • Perry Brooks, Partner at Roost Development • Tom Kelly, President at the Neil Kelly Company • Todd Gray, CFO for Merete Hotel Management and Sycan B Corp. • Joe Mazzarella, Sunlight Solar Energy, Inc. • Tyler Neese, Central Oregon Association of Realtors (COAR) 1300 NW Wall Street Bend, Oregon 97703 t: (541 ) 388-6584 @ erik.kropp@deschutes .org www.deschutes.org RESPONSE FROM PERRY BROOKS,. ROOST DEVELOPMENT Email from Perry Brooks, Roost Development Partner, to Erik Kropp, March 7, 2022 "Hi Erik, Thanks for reaching out. I am completely comfortable with you sharing this information in the staff report. The projects I will be referring to are headed towards development, but until we have a shovel in the ground, there's always the chance that they won't be built. But for the time being, we are definitely on track for development. CPACE financing would increase the probability of making the projects happen due to better financial terms for the measures that reduce energy burden and increase resiliency. The first project we're working on that would work well for CPACE financing is a 36-unit, net zero, 54,000 sf apartment building on 4tl9i and Olney. I've attached the land use entitlement package that we submitted to the City for their review and approval. The target for this building is to be net zero, meaning it produces more electricity than it requires. The goal is to start construction at the end of 2022 or early 2023. This project is ideal for CPACE financing being a net zero project and designing the project around sustainability. The second project is a, 5600 sf multi -use building with commercial space on the lower floor and three apartments on the second floor. This project is located on Colorado just east of Bond St. Similar to the first project, it is also proposed to be a net zero building. This project is a little further along in development with building permits being submitted this month and we plan to start construction in late summer, early fall of 2022. I've attached the conceptual drawings for this building. Our development company has several other multi -family and commercial projects in the future, all of which would benefit from CPACE financing. Let me know if there is any other information I can provide. Thanks, Perry" 1300 NW Wall Street Bend, Oregon 97703 e (541) 388-6584 @ erik.kropp@deschutes .org www.deschutes.org RESPONSE FROM TOM KELLY, PRESIDENLNEILKELLY COMPANY Via email from Neil Kelly to Erik Kropp on March 7, 2022 1. If CPACE were available, do you anticipate using the program? We would be a potential -Pace user in 2023 or 24. 2. If yes, for what type of projects (for example, solar panels, LED light upgrades, more energy efficient I-IVAC system, etc.)? We are planning a new roof and solar for our Bend building. 3. If yes, what is your desired timeline (right now there are projects ready to go, within the next 6 months, within the next year, within next 1.5 years, 2 years, 2 years plus)? 2 years. 4. Do you have other information you would like me to share with the Board? The C-Pace program in Portland allowed us to purse a project on our headquarters a few years earlier the we might have otherwise. We did pay it off early. 1300 NW Wall Street Bend, Oregon 97703 ' (541) 388-6584 @a erik.kropp@deschutes .org www.deschutes.org INPUT FROM TODD GRAY, MERETE HOTELS Email from Todd Gray, CFO for Merete Hotel Management and Sycan B Corp. From: Todd Gray <TGraygmeretehotels com> Sent: Friday, February 18, 2022 1:49 PM To: citizeninput scitizeninput@ideschutes org> Subject: Citizen Input Request to Speak 2123 I am the Chief Financial Officer for Merete Hotel Management and Sycan B Corp. As you may be aware, we are active in the Bend community, having recently opened the Element Hotel and Holiday Inn Express respectively, and are preparing to break ground on a small commercial development adjacent to the Element. As a stakeholder, I would like to express my desire to speak in person at the meeting scheduled on February 23rd, 2022, as part of the Citizen Input Process. A few of the benefits of CPACE: • CPACE provides funds that otherwise would have to be provided by traditional bank debt or investment capital. In practice, CPACE has the benefit of lowering the amount of investment capital required and increasing the potential overall return of a project. As a result, CPACE can literally move a project from one that does not pencil to a potentially profitable project. We have run various numbers on potential new projects, with and without CPACE, the estimates with CPACE demonstrated far superior returns than those without CPACE. • As develop across the Pacific Northwest. All things considered equal, a community that offers CPACE compared to one that doesn't have a distinct competitive advantage. Development dollars are going to flow into markets with CPACE compared to those without. • CPACE has successfully been implemented within several jurisdictions and communities. A good example of a successful CPACE program can be found within Clark County Washington. There is no need to reinvent the wheel with successful programs already operating. • Time is of the essence, the economic impact of COVID is still a barrier to many new developments and with interest rates only increasing alternative financing sources are needed for new development activity. We are currently looking at another hotel project in Deschutes County, its marginal at best. With CPACE, the likelihood of moving forward only increase. Merete Hotel A Management Todd Gray CFO Merete Hotel Management 840 Beltline Rd., Ste 202{Springfield, OR 97477 tgrayigmeretehotels.com meretehotels.com 541-284-0609 I Fax 541 746-2590 1300 NW Wall Street Bend, Oregon 97703 (541) 388-6584 @ erik.kropp@deschutes .org www.deschutes.org RESPONSE FROM CENTRAL OREGON ASSOCIATION OF REALTORS (COAR) Email from Tyler Neese, COAR 1. If CPACE were available, do you anticipate using the program? In order to get a sense of how and if a CPACE program might be utilized in Deschutes County, we solicited feedback from commercial brokers through both committees and an online survey. We asked them to think about projects and properties they're working on, as well as clients they represent. Overall, the brokers who weighed in were supportive and said they anticipate using the program either personally or on behalf of a client. 2. If yes, for what type of projects (for example, solar panels, LED light upgrades, more energy efficient HVAC system, etc.)? Solar panels, LED lights,_ HVAC, electric car charging stations, and multi family projects. 3. If yes, what is your desired timeline (right now there are projects ready to go, within the next 6 months, within the next year, within next 1.5 years, 2 years, 2 years plus)? The answers varied from "within the next 6 months" to "2 years." 4. Do you have other information you would like me to share with the Board? The Central Oregon Association of REALTORS® (COAR) supports the creation of a Commercial Property Assessed Clean Energy (CPACE) Program in Deschutes County. A CPACE program would be a valuable option for commercial building owners and developers and could prove to be both an economic boost for the County and a helpful tool in achieving greater sustainability in development by providing commercial building owners and developers supplemental financing options for performance improvements on new and existing buildings. We encourage the Board of County Commissioners to authorize a CPACE program, and we would welcome the opportunity to provide input and offer expertise in its development and implementation. 1300 NW Wall Street Bend, Oregon 97703 4 (541) 388-6584 @ erik.kropp@deschutes .org www.deschutes.org RESPONSE FROM SUNLIGHT SOLAR ENERGY, INC. Email from Joe Mazzarella to Erik Kropp on March 7, 2022 "Hello Erik, I just wanted to reach out in regards to the discussions on creating C-PACE financing for commercial energy projects in Deschutes County. I have been developing commercial and residential solar projects here in Central Oregon with Sunlight Solar Energy for 10 years. In my experience, the biggest hurdle in developing commercial solar electric systems is not the simple payback or ROI, but being able to offer reliable and attractive financing options to fund these energy projects. Although I don't have any projects 'in hand' that I can say would surely move forward with C- PACE financing, as it is difficult to promote or discuss it before it is actually a reality, I do believe that this is something that if clone right can be a very attractive option for businesses here in Central Oregon. So, please consider this a letter of support and I look forward to learning more about how this is structured and being able to present it to potential customers in the region. Thank you, Joe Mazzarella" Joe Mazzarella, System Design and Project Development Sunlight Solar Energy, Inc. 1300 NW Wall Street Bend, Oregon 97703 t; (541) 388-6584 @ erik.kropp@Deschutes .org www.deschutes.org Attachment B Hypothetical Traditional Bank Loan vs CPACE Financing Capital Expenditures Related to Energy Savings: examples may include solar panels, LED lighting upgrade, new energy efficient HVAC system, etc. Bank Loan CPACE Lien Cost for energy conservation measure $500,000 $500,000 Down payment (15%) $ 75,000 $ 0 Loan $ 425,000 $ 500,000 Loan term 5 years 20 years Interest rate % 5% 6% 5-Year Net Cash Flow Annual Debt Service $ 96,243 $ 42,986 Annual energy savings $ 55,000 $ 55,000 Net annual cash flow $ (41,243) $ 12,014 Cash flow over 5 years $ (206,216) $ 60,070 Down payment cash flow $ ( 75,000) $ 0 5 Year Net Cash Flow $ (281,216) $ 60,070 1300 NW Wall Street Bend, Oregon 97703 e (541) 388-6584 Ccil erik kropp@deschutes .org - www.deschutes.org Les lfl iv— V L co • • b.A '41-; N 2 L- N (10 N O p 00 N 4-1 VI 4- CU VI Benton County and City of Corva Oregon CPACE Local Program document a 73 2 nput from County Assessor w L) a_ V c VI a . a) c co V 0 n3 c a) 0 a_ Bank Loan CPACE Financing vs Traditiona BOCC direction to staff • • a) o s- t V c t® V E 4- • W 670 �- c7V Lu Nn a- d L. ECa MI 4V +u • A•v©c•tesin.Iestate I.e r ra 0 V) • • a co 4>20' C = 2 (13 -0 a 0 a) 4-jc 73 2 a. a) co +3 8 E >i c 0... o in (13 u u ,.... -0 c ,..,. m E 8 Er„ (i) -0 . 0.0 L--. 0 D a 73 CI RI ro cl- o 73 c,, E > E N, 4...) E ... N CD N Mro c ... ...0 % a) g i _ P -§-. co c a; • V ro 0 E E(-0 to, T-0 o .c to E J C -0 +; 0 Q � c Li a) a) Ec .0 ,.., o a) E-� L ® ci 0 4. o ,,, a o 0 -0 01- a,v) E 2 4_, a) ci D , +r E w t..) a. a. N 0 N roC V) 4-' X roC 0L. v O p o a bo oct-7) ! 22 Z L a) LL ection of annual loan payment owing (Attachment A) c O ▪ � a Q 0 O u 4p > >, a �' aj o 4"I in o � Z E 0ce a 0 1. (a 4J 4— L t6 D c c ▪ a > ra 73 •— d In itp V - ci CD 0 >, M A Todd Gray, CFO for Merete Hotel Management and Sycan B Corp. Joe Mazzarella, Sunlight Solar Energy, Inc. a 0 u 0 :6.• a ce 4- 0 0 '0 0 In a c a0A a) 0 Ta u di 0 a) Z L. H Attachment B • * Traditional Bank Loan 4, E a) E >, ro oc 0 0 Less net cash fi Security is trust deed Shorter loan term 4"E' 0,0 (1) oroc c E _ >, u ro E C ci rci a) c 4_, LL. 0 65 LLI -a b U ° CI. u to 6 co 0 * 0 0 c a) 4, 0 4.- 4J v) n3 u a) >, 4-, c n 0 u >, JD "0 2) D u a) 0 c n3 o .._r 1. Not approve CPACE VI Q. C al lef 013 Vn M VI 0 RI u Li)to O0 13 0 4 -+ (0 W a Q a. (n 0 V a c a) , •— in C (0 CI" tits 4.11 4- 4-0 W LU in V V e IA 0 0 co W CU W � W u ©C O. v s +•1. 1:-,1 ca 1C.5 4— aU 0 E 0 4- CO 4-0 tan um N 10 2 CIA co 0 CO 4.. 0 a) u c (13 f.2 4- 00 u m� 73 (13 SD (13 4— RI kJ 4) • staff resources (13 0 ra ("•,. a) ro a) CU a) E uu 1 v) •