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2022-292-Minutes for Meeting July 20,2022 Recorded 8/11/2022BOARD OF COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541) 388-6570 Recorded in Deschutes County Steve Dennison, County Clerk Commissioners' Journal CJ2022-292 08/11/2022 12:03:23 PM FOR RECORDING STAMP ONLY BOCC MEETING MINUTES 9:00 AM WEDNESDAY, July 20, 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 9:00 a.m. PLEDGE OF ALLEGIANCE: CITIZEN INPUT: Commissioner Adair acknowledged emails received through the Citizen Input line. CONSENT AGENDA: Before the Board was Consideration of the Consent Agenda. Commissioner Chang requested to pull Agenda Item 3 for discussion. BOCC MEETING JULY 20, 2022 PAGE 1 OF 10 DEBONE: Move approval of Consent Agenda Items 1 and 2 CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried 1. Consideration of Board Signature of Order No. 2022-039, Appointing Health Services Director's Designees 2. Consideration of Board Order No. 2022-038, an Order Directing the County Administrator to Sign a Grant Agreement to Accept Funds to Support a Coordinated Office on Homelessness 3. Consideration of Resolution No. 2022-052 to Extend 4.0 Limited Duration Health Services FTE within the FY 2022-2023 Deschutes County Budget ACTION ITEMS: Consent Agenda Item 3 as pulled for discussion: Consideration of Resolution No. 2022-052 to Extend 4.0 Limited Duration Health Services FTE within the FY 2022-2023 Deschutes County Budget Commissioner Chang would like fellow commissioners to consider longer durations for COVID response for better results in recruitment. Commissioner Adair requested a discussion with Budget Manager Dan Emerson. Commissioner DeBone acknowledged his support of the Resolution as presented. Commissioner Adair requested further information from the Budget Manager. 4. DELIBERATIONS: Consideration of Board Ordinance No. 2022-009, Referring a Measure to the Electors to Prohibit the Establishment of Psilocybin Product Manufacturers and Psilocybin Service Center Operators within Unincorporated Deschutes County Commissioner DeBone expressed support of placing this on the ballot for the electors to consider. Commissioner Chang shared his opinion that a BOCC MEETING JULY 20, 2022 PAGE 2 OF 10 referral to the electors constitutes a waste of tax payer dollars as there has been insufficient evidence presented to date which would suggest that the electors will support an opt out. Commissioner Adair supports referring this back to the electors as the state has taken so long to come up with the rules and the facilitators at the service centers are not required to be medical professionals. Commissioner DeBone clarified that the basis and reason for the measure and ordinance is actually the possible impact on land uses within the unincorporated county, and feels that it is appropriate for the Commissioners to refer this matter to the electors. He stressed that the measure is not about psilocybin pro or con, but rather it is about land use impacts. DEBONE: Move approval and first reading by title only of Ordinance No. 2022-009 ADAIR: Second Discussion: Commissioner Chang commented on the previous vote by the people and wonders what can change. VOTE: DEBONE: Yes CHANG: No ADAIR: Chair votes yes. Motion Carried Commissioner Adair read Ordinance No. 2022-009 by title only into the record. The second reading will be scheduled for two weeks. DEBONE: Move approval of Order No. 2022-041 ADAIR: Second VOTE: DEBONE: Yes CHANG: No ADAIR: Chair votes yes. Motion Carried DEBONE: - Move approval of Chair signature of Request for Ballot Title election document ADAIR: Second BOCC MEETING JULY 20, 2022 PAGE 3 OF 10 VOTE: DEBONE: Yes CHANG: No ADAIR: Chair votes yes. Motion Carried County Counsel Dave Doyle inquired on Board direction for staff work regarding land use regulations for time, place, and manner. CDD Director Peter Gutowsky reported that staff will prepare a memorandum for next week's BOCC meeting regarding the current code structure for psilocybin time place and manner amendments. Commissioner Chang recommends using general fund dollars for contracting services to assist the Community Development Department with the necessary work on the text amendments. 5. Oasis Village: Project Update Property Manager Kristie Bollinger introduced Bob Bohac, Tim Vezie, and Hayes McCoy, and James Cook for the update on the Oasis Village project including funding sources. The shelters will be constructed in Redmond and the first residents will be welcomed in November 2023. 6. First Reading of Ordinance No. 2022-008, An Ordinance amending Chapter 2.14 (County Internal Auditor) and Chapter 2.15 (County Audit Committee) as recommended by the County Audit Committee Internal Auditor David Givans presented the Audit Committee recommended code changes. Mr. Givans reported on a revision needed in the exhibits. The second reading will be presented in two weeks. CHANG: Move approval of Ordinance No. 2022-008, first reading by title only DEBONE: Second VOTE: CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried BOCC MEETING JULY 20, 2022 PAGE 4 OF 10 Commissioner Adair read the Ordinance into the record by title only. 7. Notice of Intent to Award a Services Contract for the Household and Conditionally Exempt Generator Hazardous Waste Management Program Solid Waste Director Chad Centola presented the item for consideration. Mr. Centola reviewed the scope of services of this program including the depth of paperwork administration required. Two firms submitted proposals. Clean Earth Environmental Solutions is recommended for the contract. DEBONE: Move approval of Document No. 2022-648, Notice of Intent to Award. CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried 8. Consideration of Board Signature of Document No. 2022-646, Amendment for Extension of the Agreement with the Heart of Oregon Corps Solid Waste Director Chad Centola presented the item for consideration explaining the services provided in the agreement. DEBONE: Move approval of Document No. 2022-646 CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried BOCC MEETING JULY 20, 2022 PAGE 5 OF 10 Consent Agenda Item 3 as pulled for discussion: Consideration of Resolution No. 2022-052 to Extend 4.0 Limited Duration Health Services FTE within the FY 2022-2023 Deschutes County Budget Budget Manager Dan Emerson reported on the positions included in this Resolution. Commissioner Adair inquired on whether any of the positions were filled at this time. Mr. Emerson stated one position was filled. Commissioner Chang asked for the positions to be longer in duration. Mr. Emerson noted he would need to check with FEMA as the funding is covered through the agency for one year. Commissioner DeBone supports the Resolution and also a review at end of year. DEBONE: Move approval of Resolution No. 2022-052 ADAIR: Second VOTE: DEBONE: Yes CHANG: No ADAIR: Chair votes yes. Motion Carried Commissioner Chang stated this action represents an inefficient use of our staff and is fiscally irresponsible. Commissioner Adair requested a vacancy report for all departments. 9. Consideration of Resolution No. 2022-053, Adopting a Supplemental Budget and Increasing Appropriations within the Health Services Fund and 2022-2023 Deschutes County Budget Budget Manager Dan Emerson reported on the positions included in this Resolution. CHANG: Move approval of Resolution No. 2022-053 DEBONE: Second VOTE: CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried BOCC MEETING JULY 20, 2022 PAGE 6 OF 10 10.Consideration of Resolution No. 2022-054, Adopting a Supplemental Budget and Increasing Appropriations within the Health Services Fund and 2022-2023 Deschutes County Budget Budget Manager Dan Emerson reported on the retention measures included in this Resolution. DEBONE: Move approval of Resolution No. 2022-054 CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried 11.Consideration of American Rescue Plan Act Funding Proposals Budget Manager Dan Emerson reported on the status of the ARPA Fund requests including those from Sisters Park and Recreation, The Giving Plate, and Furnish Hope. The Sisters Park and Recreation District has requested $25,000 to increase childcare capacity for an expanded program. CHANG: Move approval of $25,000 allocation of ARPA funds to the Sisters Park and Recreation District childcare proposal. DEBONE: Second VOTE: CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried Mr. Emerson presented a $241,000 request from Furnish Hope for a component of affordable housing. Commissioner DeBone stated he feels this request doesn't fit the ARPA allocation criteria. BOCC MEETING JULY 20, 2022 PAGE 7 OF 10 ADAIR: Move approval of $81,000 allocation of ARPA funds to the CHANG: Second VOTE: CHANG: Yes DEBONE: No ADAIR: Chair votes yes. Motion Carried Mr. Emerson is evaluating other requests for eligibility. The Giving Plate request will be presented at a later date. A presentation on child care will be given at a future meeting to see the progress of the use of funding. OTHER ITEMS: • Deputy County Administrator Whitney Hale presented results for state legislative representation and lobbying services. Five proposals were received. Staff outlined options and inquired whether interviews should be conducted. Commissioner Chang stated he wasn't inclined to interview PAC West but if the other Commissioners wanted to then there should be a question posed to them of what they would do different with an extended contract when most of the work accomplished for Deschutes County during the most recent session was done by legislators or by County staff. The Board supported interviews for the top three firms. Ms. Hale will schedule interviews for next week. . Commissioner Adair requested the interviews for next Wednesday. RECESS: At the time of 11:20 a.m., the Board went into recess and reconvened the meeting at 11:23 a.m. 12.Performance Measure Update from Environmental Health Administrative Analyst Laura Skundrick and Eric Mone Environmental Health Supervisor presented the update on food service inspections. Commissioner Chang commented on possible use of COVID response funds for the work of BOCC MEETING JULY 20, 2022 PAGE 8 OF 10 the department. Mr. Mone also reported on a new program that will be provided with home well sample testing for water quality. The Board thanked Mr. Mone for his work and that of his staff. 13.Grant Follow -Up: Spay and Neuter Grant and Discretionary Grants Administrative Analyst Laura Skundrick presented the spay and neuter grant applications received for grant funding. Five applications were received and reviewed by the Dog Board of Supervisors. The Board thanked the Dog Board for their efforts and are supportive of their recommendations. DEBONE: Move approval of the $11,000 grant awards as recommended by the Dog Board of Supervisors CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried Ms. Skundrick also provided a follow up on the fiscal year 23 discretionary grant applications. The Board offered levels of support for the presented applications. OTHER ITEMS: • Property Manager Kristie Bollinger presented a draft letter of interest for the La Pine Community Health Center for consideration. The Board offered recommended language changes for the letter. DEBONE: Move approval of Board signature in its discussed form CHANG: Second VOTE: DEBONE: Yes CHANG: Yes ADAIR: Chair votes yes. Motion Carried BOCC MEETING JULY 20, 2022 PAGE 9 OF 10 • Commissioner DeBone reported on the Friday morning La Pine Chamber Breakfast • Commissioner Chang attended the Sunriver Chamber meeting last week virtually. • Commissioner Adair reported on Family Services team in Redmond. EXECUTIVE SESSION: None presented ADJOURN Being no further business brought before the Commissioners, the meeting was adjourned at 12:13 p.m. DATED this is Day of Commissioners. ATTEST: RECORDING SECRETARY 2022 for the Deschutes County Board of PATTI ADAIR, CHAIR ANTHONY DEBONE, VICE CHAIR �''�✓' mil/`_ PHIL CHANG, COMMISSIONER BOCC MEETING JULY 20, 2022 PAGE 10 OF 10 BOARD OF COMMISSIONERS BOARD OF COUNTY COMMISSIONERS MEETING 9:00 AM, WEDNESDAY, JULY 20, 2022 Barnes Sawyer Rooms - Deschutes Services Bldg - 1300 NW Wall St - Bend (541) 388-6570 I www.deschutes.org 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 will 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. 2022-039, Appointing Health Services Director's Designees 2. Consideration of Board Order #2022-038, An Order Directing the County Administrator to Sign a Grant Agreement to Accept Funds to Support a Coordinated Office on Homelessness 3. Consideration of Resolution No. 2022-052 to Extend 4.0 Limited Duration Health Services FTE within the FY 2022-2023 Deschutes County Budget. ACTION ITEMS 4. 9:05 AM DELIBERATIONS: Consideration of Board Ordinance No. 2022-009, Referring a Measure to the Electors to Prohibit the Establishment of Psilocybin Product Manufacturers and Psilocybin Service Center Operators within Unincorporated Deschutes County 5. 9:50 AM Oasis Village: Project update 6. 10:20 AM First reading of Ordinance No 2022-008. An ordinance amending Chapter 2.14 (County Internal Auditor) and Chapter 2.15 (County Audit Committee) as recommended by the County Audit Committee. 7. 10:30 AM Notice of Intent to Award a Services Contract for the Household and Conditionally Exempt Generator Hazardous Waste Management Program 8. 10:40 AM Consideration of Board signature of Document No. 2022-646, Amendment for Extension of the Agreement with the Heart of Oregon Corps 9. 10:50 AM Consideration of Resolution No. 2022-053 Adopting a Supplemental Budget and Increasing Appropriations within the Health Services Fund and 2022-23 Deschutes County Budget. July 20, 2022 BOARD OF COUNTY COMMISSIONERS MEETING Page 2 of 3 10. 10:55 AM Consideration of Resolution No. 2022-054 Adopting a Supplemental Budget and Increasing Appropriations within the Health Services Fund and 2022-23 Deschutes County Budget. 11. 11:00 AM Consideration of American Rescue Plan Act Funding Proposals LUNCH RECESS 12. 1:00 PM Performance Measure Update from Environmental Health 13. 1:15 PM Grant follow up: Spay & Neuter Grant and Discretionary Grants 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. 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. July 20, 2022 BOARD OF COUNTY COMMISSIONERS MEETING Page 3 of 3 Sharon. Keith From: Tom Bracken <tombracken@att.net> Sent: Tuesday, July 12, 2022 5:19 PM To: Patti Adair, Phil Chang; Tony DeBone Cc: Board; citizeninput Subject: Expansion of Sisters Eagle Airport Attachments: Airport Expansion.pdf Some people who received this message don't often get email from tombracken@att.net. Learn why this is important [EXTERNAL EMAIL] Dear Commissioners - I liven miles north of Sisters Eagle Airport in the flight path of the airport. I have recently discovered there is a plan for a massive expansion of the airport -- from 12 hangers to more than 1000. Please see the attached document for reference. This is of great concern to all homeowners and residents in the area. Not only would an expansion create more noise and potentially reduce property values, it will also increase the risk of death and property destruction from operational failures or pilot error. Apparently, the Sisters City Council has no knowledge of this expansion. Are you aware of this plan? We kindly request that you hold a public hearing on this matter at your next meeting and let the public be heard. This kind of extreme expansion without a public safety hearing and environmental impact study seems very inappropriate. I know that my neighbors and I stand in opposition to any planned expansion of the Sisters Eagle Airport. Please let me know when this topic can be placed on the agenda. Best regards, Tom Tom Bracken 805.302.5771 tombracken@att.net 1 AFTER RECORDING RETURN TO: Sisters Airport Property LLC Attn: Benjamin Benson 15820 Barclay Drive Sisters, OR 97759 WITH A COPY TO: Michelle D. Da Rosa LLC Attorney at Law 205 SE Spokane Street, S uite 300 Portland, OR 97202 Deschutes County Official Records Steve Dennison, County. Clerk 12022-25202 IlIlUlIlIl 1I1IIIMIII II 11111111. 01445498202200252020390398 D LE Crit=1 Pgs=39181&-2.5 06/23/2022 03:37 PM $195.00 $11.00 $10.00 $61.00 $6.00 $2.83.00 GROUND I.F.ASE SAP Hangars Condominium Project This GROUND LEASE (this "Lease") is dated effective as of /776'69f 2 , 2022 by and between Sisters Airport Property LLC, an Oregon limited liability company ("Landlord"), having an address at 15820 Barclay Drive, Sisters, OR 97759, and SAP Hangar Condominium LLC, an Oregon limited liability company ("Tenant'), having an address at 15820 Barclay Drive, Sisters, OR 97759. RECITALS Landlord is the owner of certain land situated in the City of Sisters, Deschutes County, Oregon that Landlord wishes to lease to Tenant for Tenant's development, leasing, operation, maintenance and use as a commercial development to be known as SAP Hangais -Condominium, that will be submitted to a leasehold condominium in stages and may contain up to 100 units. (the "Project"). Capitalized terms used herein are defined in Section 1, if not otherwise defined in the body of the Lease. NOW THEREFORE, IN CONSIDERATION of the covenants and agreements of the parties set forth below, and for other good and valuable consideration, the receipt and adequacy of which are acknowledged by each party to thi s Lease, Landlord and Tenant agree as follows: LEASE Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the land described in Exhibit A, attached (the "Land"), TOGETHER WITH the following nonexclusive Access License over the Common Area: Upon mutual execution of this Lease, Tenant will have the right to (1) use existing drive aisles, parking areas, aircraft taxilanes, ramps and aprons, utility lines, meters, and connections to existing utility lines located in the portion of the Expansion Area, defined below; designated as the "Common Area" in the attached Exhibit B , and (2) to construct, install, and use in the future such new features on the portions of the Expansion Area after being added to the Premises pursuant to Section 17 below new drive aisles, parking, areas, aircraft taxilanes, ramps and aprons, utility lines and connections to existing utility lines; (3) to use and connect to existing utility lines and facilities on, under, over' and across the Common Areas as and to the extent required by Tenant for any building constructed by Tenant on the Premises. Tenant has ' a nonexclusive license over, and Tenant's members, managers, officers, employees, representatives, agents, licensees, invitees, and subtenants (and the members, managers, officer, employees, representatives, agents, 1 licensees, and invitees of such subtenants) and Unit Owners (collectively, the "Permitted Persons") have a non-exclusive license to use, in common with Landlord and other tenants and permitted users of the Airport Development, the access driveways from adjacent. public roads, taxilanes and aprons and any improved pedestrian walkways within the Common Areas, for these purposes: (i) ingress and egress of Tenant and Tenant's Permitted Persons and their vehicles to and from any portion of the Airport Development and public streets or roads (including Barclay Road) to the Airport Development; (ii) movement of pedestrian and vehicular traffic of Tenant and Tenant's Permitted Persons from any part of the Airport Development to any other part of the Airport Development of drive aisles and pathways; (iii) loading and unloading, and (iv) staging, fueling, and movement of aircraft from the hangars constructed in the Project to the Sisters Airport runway. TO HAVE AND TO HOLD the Premises unto Tenant, its successors and permitted assigns, for the sole purpose and term of years set forth in this Lease, on the terms and subject to the conditions as follows: SECTION 1. DEFINITIONS. 1.1 The following terms have the following meanings: "Additional Rent" has the meaning given in paragraph 3.1.2. "Airport Development" means the Land and Expansion Area and Improvements thereon, including taxilanes, aprons, ramps, aircraft staging and fueling areas, drive aisles, parking areas, buildings, utilities, and other improvements existing now or constructed in the future in the Expansion Area. "Bankruptcy" means, for any person, either (a) (i) applying for or consenting to the appointment of a receiver, trustee, or liquidator of such person or of all or a substantial part of its assets, (ii) filing a voluntary petition in bankruptcy or admits in writing its inability to pay its debts as they come due, (iii) making an assignment for the benefit of its creditors, (iv) filing a petition or an answer seeking a reorganization or an arrangement with its creditors or seeks to take advantage of any insolvency law, (v) performing any other act o f bankruptcy, or (vi) filing an answer admitting the material allegations of a petition filed against such person in any bankruptcy, reorganization or insolvency proceeding; or (b) (i) the entry of an order, judgment or decree by any court of competent jurisdiction adjudicating such person bankrupt or insolvent, approving a petition seeking such an adjudication, or reorganization, or appointing a receiver, trustee or liquidator of such person or of all or a substantial part of its assets, or (ii) the commencement with respect to such person, or any of its assets, any proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment, receivership or similar law, and if such order, judgment, decree or proceeding continues unstayed for any period of_60..consecutive days after the expiration of any stay thereof. "Base Rent" has the meaning given in paragraph 3,1.1. "Commencement Date" has the meaning given in paragraph 2.1. "Common Areas" means the areas identified as common areas on the site plan attached as Exhibit B shows, among other things, the shared improvements that currently comprise part of the Airport Development, which are shared by other owners and tenants of the Airport Development outside of the Condominium, including without limitation, the access driveway from Barclay Drive to the Condominium, the taxilane and ramp area from the Condominium to the Airport runway, common fueling area and restroom facilities building, and parking areas that may be designated as such by Landlord. "Condominium" means a condominium ownership regime imposed by Tenant on the Tenant's Leasehold Estate. 2 "Condominium Act" means the Oregon Condominium Act, ORS Chapter 100, as it may be amended or supplanted from time to time. "Condominium Association" means the owner's association for the Condominium pursuant to the Condominium Declaration and Bylaws. "Condominium Bylaws" means the bylaws for the Condominium Association recorded as an exhibit to the Condominium Declaration, as may be amended. "Condominium Declarant" means the person identified as such in the Condominium Declaration. "Condominium Declaration" means the declaration, and all exhibits, recorded by Condominium Declarant pursuant to the Condominium Act to create the Condominium, as may be amended. "Environmental Laws" means any and all Federal, State or local statutes, laws, rules, regulations, ordinances, orders, codes, determinations, decrees, or rules of common law pertaining to health, safety, or the environment now or at any time hereafter in effect and any judicial or administrative interpretation thereof (including, but not limited to, any._judicial or administrative order, consent decree or judgment relating to the environment or Hazardous Materials, or exposure to Hazardous Materials) including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Resource, Conservation and Recovery Act of 1976, as amended, the Clean Air Act, as amended, the Federal Water Pollution Control Act, as amended, the Oil Pollution Act of 1990, as amended, the Safe Drinking Water Act, as amended, the Hazardous Materials Transportation Act, as amended, the Toxic Substances Control Act, as amended, and any other environmental or health conservation or protection laws. "Event of Default" has the meaning given in paragrap h 12.1. "Expansion Area" has the meaning given in Section 17. "Fee Estate" means the Landlord's fee simple estate in the Premises. "Fee Mortgage" means a Mortgage against Landlord's Fee Estate. "Hazardous Materials" means any substance, chemical, material or waste now or in the future defined as a "hazardous substance," "hazardous— material," "hazardous waste," "toxic substance," "toxic pollutant," "contaminant," or "pollutant" within the meaning of or regulated or addressed under any Environmental Laws. Without limiting the generality of the foregoing, Hazardous Materials includes: petroleum and petroleum products and compounds containing them or derived from them, including natural gas, gasoline, diesel fuel, oil and other fuels and petroleum products or fractions thereof; radon; carcinogenic materials; explosives; flammable materials; infectious materials; corrosive materials; mutagenic materials; radioactive materials; polychlorinated biphenyls (PCBs) and compounds containing them; lead and lead -based paint; asbestos or asbestos -containing materials in any form that is or could become friable; pipelines constructed for the purpose of transporting Hazardous Materials, whether empty or containing any substance; any substance the presence of which on, under or about the Premises is regulated or prohibited by any governmental authority; any substance that is designated, classified, or regulated pursuant to any Environmental Law; and any medical products or devices, including those materials defined as "medical waste" or "biological waste" under relevant statutes or regulations pertaining to any Environmental Laws, but do not include those substances, materials and products used (in accordance with applicable Environmental Laws) in the normal operation of an airport hangar (with associated office use and parking use), provided such use is 3 consistent with applicable Environmental Laws and the express restrictions in this Ground Lease otherwise, and with the governing documents and rules and regulations of the Condominium. "Improvements" means any existing or future improvement to the Premises, including grading, paving, drainage, striping, lighting, landscaping, and other site improvements constructed on the Premises, structures, hangars, and other buildings, including without limitation, pipes, conduits, fixtures, sidewalks, curbs, retaining walls, fencing, foundations, and other site improvements constructed on the Premises at any time by Tenant. "Land Records" means the real property records of Deschutes County, Oregon. "Landlord" means Sisters Airport Property LLC, and its successors and permitted assigns in the Fee Estate. "Lease Year" means (a) the period commencing on the Commencement Date and terminating on the first anniversary of the last day of the calendar year containing the Commencement Date, and (b) each successive period of 12 calendar months thereafter during the Term, each of which ends on December 31 of that year. Lease. "Leasehold Estate" means the leasehold estate in the Premises held by Tenant under this "Legal Requirements" has the meaning given it in paragraph 4.2.1. "Mortgage" means any mortgage or deed of trust at any time encumbering any or all of the Premises, and any other security interest therein existing at any time under any other form of security instrument or arrangement used from time to time in the locality of the Premises (including but not limited to any such other form of security arrangement arising under any deed of trust, sale and leaseback documents, lease -and -leaseback documents, security deed or conditional deed, or any financing statement, security agreement or other documentation used pursuant to the Uniform Commercial Code or any successor or similar statute), provided that such mortgage, deed of trust or other form of security instrument, and an instrument evidencing any such other form of security arrangement, has been recorded among the Land Records or in such other place as is, under applicable law, required for such instrument to give constructive notice of the matters set forth therein. "Mortgagee" means a holder of a Mortgage. "Permitted Encumbrances" means any and all encumbrances and matters of record against the Land on the date hereof and those encumbrances and matters listed in a schedule attached as Exhibit C, which the parties anticipate will be recorded c ontemporaneously with this Lease. "Permitted Loan" has the meaning given in paragraphs 6.1.1 and 6.1.2. "Permitted Lender" means a Mortgagee holding a Permitted Loan. "Person" means a natural person, a trustee, a corporation, a partnership, a limited liability company and any other form of legal entity. "Premises" means the Land and Improvements thereon subject to this Lease, and any real property annexed to the Condominium as common elements or variable property may, in Lessor's discretion, that may be added to the Premises by an addendum to this Lease pursuant to Section 17, executed in the manner of deeds and recorded in the Land Records. However, if at any time any portion of the Premises 4 becomes no longer subject to this Lease, "Premises" will afterwards mean the portion that still remains subject to this Lease. "Project" has the meaning given it above in the Recitals. "Rent" means all Base Rent and Additional Rent. "Restoration" means the repair, restoration, or rebuilding of any or all of the Premises after any damage to or destruction of the Premises, with such alterations or additions made by Tenant in accordance with this Lease, together with any temporary repairs or improvements made to protect the Premises pending the completion of such work. "Tenant" means SAP Hangar Condominium LLC, an Oregon limited liability company and wholly -owned subsidiary of Landlord, and its successors and permitted assigns in the Leasehold Estate unless expressly defined otherwise in any specific provision of this Lease. "Term" has the meaning given in paragraph 2.,1. "Termination Date" has the meaning given in paragraph 2.1. "Units" means the dwelling units for separate residency in the Condominium created by the Condominium Declaration and each Unit's appurtenant undivided interests in the common elements of the Condominium. "Unit Owner" means the owner (as defined in the Condominium Declaration) of any Unit in the Condominium by conveyance of a partial interest in the Leasehold Estate. 1.2 General. Any other term to which meaning is expressly given in this Lease will have the meaning set forth in the body of the Lease below or in the Condominium Declaration. ATTACHED EXHIBITS EXHIBIT A EXHIBIT A-1 EXHIBIT B EXHIBIT C SECTION 2. TERM Legal Description of Premises Legal Description and Depiction of Expansion Area Legal Description and Depiction of the Common Area Permitted Encumbrances of Record 2.1 Length. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises for the Term and upon the terms, conditions and covenants provided in this Lease. This Lease is for a term ("Term") commencing on the date of this Lease ("Commencement Date"), and terminating at 11:59 o'clock P.M. on December 31, 2073 (the "Termination Date," except that if the date of such termination is in the future advanced to an earlier date or postponed pursuant to any provision of this Lease, or by express, written agreement of the parties, or by operation of law, the date to which it is advanced or postponed will thereafter be the "Termination Date" for all purposes of this Lease). Nothing in this Lease may be deemed in any way to extend or permit the extension of the Term beyond the Commencement Date, anything in this Lease to the contrary notwithstanding. 2.2 Option to Renew. Landlord hereby grants to Tenant the option to renew this Lease for up to two additional terms of 25 years each (each a "Renewal Term"). The Premises will be leased during the 5 Renewal Term on the same terms as set forth --herein subject. to the initial -Renewal Term Base Rent adjustment set forth in Section 3.1.3 and thereafter during the initial Renewal Term Base Rent adjustment as set forth in Section 3.1.5, except for the option to renew will terminate after its first exercise by Tenant. Provided no default under any of the provisions or covenants of the Lease has occurred that has not been cured, the option for the Renewal Term must be exercised by Tenant, if at all, by written notice of Tenant's exercise of its option to extend ("Option to Extend") the Term of this Lease for an Renewal Term must be given to Landlord no more than 15 years and no less than 2 years prior to the date the Term or Renewal Term, as applicable, of the Lease would otherwi se expire. 2.3 Surrender. Tenant (including for the avoidance of doubt, any Unit Owners) must, at its expense and subject to paragraph 2.4, on the Termination Date, (a) promptly and peaceably yield up to Landlord the Premises, in good order and repair, ordinary wear and tear, and damage by casualty, subject to Section 10, excepted, and broom clean, (b) remove therefrom Tenant's personal property that is not part of the Land or Improvements or otherwise owned by Landlord, and (c) repair any damage to the Property caused by such removal. No non -disturbance or other provisions of this Lease may be construed to extend beyond the date the Term would otherwise expire had Tenant performed all of its obligations under this Lease. Upon such expiration or termination (whether by reason of an Event of Default or otherwise), neither Tenant nor its creditors and representatives will thereafter have any right at law or in equity in or to any or all of the Premises (including the Land, the Improvements) or to repossess any of same, or in, to or under this Lease, and Landlord will automatically be deemed immediately thereupon to have succeeded to all of the same, free and clear of the right, title, or interest therein of Tenant, any creditor of Tenant, or any other person whatsoever. 2.4 Title to and Alterations of Improvements During Term. At all times during the Term of this Lease, the Improvements will be deemed owned by Tenant or its assignees and during the Term, such that Tenant alone is entitled to all of the tax attributes of ownership. It is hereby expressly understood and agreed that, during the term of the Lease, prior to the formation of the Condominium, any and all Improvements constructed, placed, or maintained by Tenant upon any part of the Premises will be and remain property of Tenant, and, as such, Tenant will be entitled to all depreciation, deductions, or other benefits for income tax purposes relating to the Improvements prior to the formation of the Condominium. It is expressly agreed that said Improvements may not be severed from the Premises. Landlord and Tenant acknowledge that upon declaration of the leasehold Condominium and conveyance of the Unit(s) to Unit Owners and for the entire remaining Term of this Lease, each Unit Owner, together with its successors and assigns, will be the owner of a Unit and an undivided interest in the leasehold Condominium common elements purchased by and conveyed to each such Unit Owner. SECTION 3. LEASE FEE. 3.1 Rent Amount. As rent for the Premises, Tenant will pay to Landlord: 3.1.1 Base Rent. During the term of this Lease, Tenant must pay to Landlord annual Base Rent for the Premises for each unit then in the Condominium, as follows: T-Hangar Units: $ 1200 If by exercising the Tenant's Option, the Expansion Property or any portion of it is added to the Premises pursuant to Section 17 and annexed to the Condominium as a Unit type that is not a T-Hangar Unit, Landlord will determine the Base Rent for that Unit type and include it in the addendum to this Lease that adds the Expansion Property. Tenant acknowledges that the Base Rent is not refundable in any circumstance. 6 Landlord reserves the right to amend the Lease if a new class of Units is annexed to the Condominium and to set the Base Rent for that class of Unit by addendum to this Lease and notice to Tenant. 3.1.2 Payment. Lessee must pay the annual Base Rent in advance on or before January 1 of each calendar year during the term of this Lease, prorated for any partial year, or quarterly, in Landlord's discretion, every third month before the first day of the calendar month of the start of the next quarter, being January 1, April 1, July 1, or October 1 of the calendar year, prorated for any partial quarter. 3.1.3 Additional Rent. Tenant will pay all sums, charges, or other amounts which Tenant is obligated to pay under this Lease, including, but not limited to, costs of taxes, insurance, and public utility charges, other than the Base Rent ("Additional Rent"). Notwithstanding, upon formation of the Condominium and conveyance of a Unit to a Unit Owner (including a partial assignment of this Lease), the Unit Owner must pay any property tax and assessments levied against the owner's Unit and Landlord will have no liability for such taxes or assessment, subject to Section 3.2. 3.1.4 Adjustment of Base Rent. The Base Rent for each classification of Unit will be adjusted up starting on January 1, 2030 and thereafter on each January 1 during the Term and any Renewal Term, by 3 percent over the Base Rent payable in the just -prior calendar year of the Term or Renewal Term, as applicable. However, the Base Rent will also be subject to adjustment upon exercise of the Renewal Term extension option as follows: 3.1.5 Renewal Term Adjustment. In the event Tenant validly exercises its Option to Extend the Term of this Lease as herein provided, Base Rent will be adjusted as of the commencement date of the second Renewal Term as follows (but in no event will it be less than 103 percent of the Base Rent for the month immediately prior to the commencement of the second Renewal Term): (1) Not later than six months prior to the commencement of the Renewal Term, Landlord will provide Tenant with Landlord's determination of the fair market Base Rent for the Renewal Term, including periodic increases as dictated by the current market ("Landlord's Determination of Base Rent for Renewal Term"). Tenant will provide notice to Landlord within 10 days after receipt of such notice from Landlord as to whether Tenant accepts Landlord's Determination of Base Rent for Renewal Term. In the event Tenant does not agree to Landlord's Determination of Base Rent for Renewal Term, Landlord and Tenant will attempt to agree upon Base Rent for the Premises for the Renewal Term, such rent to be the fair market rental value of the Premises for the Renewal Term, as defined in Subsection (3) below. If the parties are unable to agree upon the Base Rent for the Renewal Term by the date three months prior to the commencement of the Renewal Term, then within 10 days thereafter each party, at its own cost and by giving notice to the other party, will appoint a real estate appraiser with at least five years' full-time commercial real estate appraisal experience`in the area in which the Premises are located to appraise the Premises free of the buildings constructed thereon and set Base Rent for the Renewal Term. If a party does not appoint an appraiser within 10 days after the other party has given notice of the name of its appraiser, the single appraiser appointed will be the sole appraiser and will set Base Rent for the Renewal Term. If each party has appointed an appraiser, the two appraisers will meet promptly and attempt to set the Base Rent for the Renewal Term. If the two appraisers are unable to agree within 30 days after the second appraiser has been appointed, they will attempt to select a third appraiser meeting the qualifications herein stated within 10 days after the last day the two appraisers are given to set Base Rent. If the two appraisers are unable to agree on the third appraiser within the 10-day period, either of the Parties to this Lease, by giving five days' notice to the other Party, may apply to the then - presiding judge of the Deschutes County Circuit Court for the selection of a third appraiser meeting the qualifications stated in this paragraph. Each of the Parties will bear half of the cost of appointing the third appraiser and of paying the third appraiser's fee. (2) The fair market Base Rent will be fixed by the three appraisers in accordance with the following procedures. Each party appointed appraiser must state, in writing, his or her determination of the fair market Base Rent supported by the reasons therefor and will make counterpart copies for the other party appointed appraiser and the neutral appraiser. The party -appointed appraisers will arrange for a simultaneous exchange of their proposed fair market Base Rent determinations. The role of the neutral appraiser will be to select whichever of the two proposed determinations of fair market Base Rent most closely approximates the neutral appraiser's own determination of fair market Base Rent. The neutral appraiser will have no right to propose a middle ground or any modification of either of the two proposed determinations of fair market Base .Rent. The determination of ,fair market Base Rent the neutral appraiser chooses as that most closely approximating the neutral appraiser's determination of the fair market Base Rent will constitute the decision of the appraisers and will be final and binding upon the parties. The appraisers will have no power to modify the provisions of this Lease. (3) For purposes of the appraisal, the term "fair market Base Rent" means the price that a ready and willing tenant would pay, as of the Renewal Term commencement date, as a base rent to a ready and willing landlord of premises comparable to the Premises, in terms of size, quality and comparable term, in without the buildings, in the Oregon market outside a metropolitan area of a population of 500,000 or more, if such premises were exposed for lease on the open market for a reasonable period of time; including any rent increases over the Renewal Term. In no event may there be deducted from such fair market rental the value of any concessions in favor of Tenant, including without limitation, tenant improvements, commission and/or "down time" (4) The neutral appraiser's decision must be made not later than 30 days after the submission by the appraisers of their proposals with respect to the fair market Base Rent. The parties have included these time limits in order to expedite the proceeding, but they are not jurisdictional, and the neutral appraiser may for good cause allow reasonable extensions or delays, which shall not affect the validity of the award. Absent fraud, collusion or willful misconduct by the neutral appraiser, the award will be final, and judgment may be entered in any court having jurisdiction thereof. The right to extend this Lease hereby granted is personal to the entity that executes this Lease as Tenant and is not transferable, except to the Condominium association, which pursuant to Section 16.2 will act on behalf of all Unit Owners in respect of the exercise of the option to renewal and the determination of the Base Rent for Renewal Term. Except in the case of subletting less than all of the Premises while Tenant remains in possession of the remainder of the Premises, in the event of any assignment or subletting under this Lease, the right to extend the term of this Lease will automatically terminate and will thereafter be null and void. 3.2 Net Lease. The parties intend that this Lease is an absolute net lease. Except to the extent expressly set forth in this Lease, Tenant will pay all costs, expenses, liabilities, or charges whatsoever with respect to the Premises during the Term of this Lease, including without limitation, all costs of developing, constructing, financing, leasing, selling, owning, operating, maintaining, repairing, and replacing, the Land and Improvements, and for property taxes and insurance attributable to the Premises; all of which will be deemed Additional Rent. Landlord, however, will be responsible to pay for property taxes and assessments attributable to the licensed Common Areas. All utilities are either shared or are sub -metered Unit by Unit over the Premises; in either case, Tenant is responsible for paying for utilities as Additional Rent. Utility expenses will be allocated to Unit Owners according tactual use, if the utility is sub -metered, or according to the Unit Owners' proportionate undivided interest in the common elements of the Condominium. SECTION 4. USE OF PREMISES. 4.1 Establishment of Condominium. 4.1.1 Upon substantial completion of the Project and any future stage of the Condominium, Tenant will submit the Leasehold Estate to the condominium form of ownership pursuant to 8 the Condominium Act by executing and recording the Condominium Declaration and plat. Landlord will execute the Condominium Declaration and the condominium plat as necessary to evidence Landlord's consent to the establishment of the condominium form of ownership of the Leasehold Estate and to evidence its obligations set forth in the Condominium Declaration. Tenant will be the sole Condominium Declarant and will be solely liable for the Condominium Declarant's obligations under the Condominium Act. 4.1.2 Tenant will not, at any time during the Te rm, amend the Condominium Declaration, the related condominium plat, or the Articles of Incorporation or Bylaws of the Condominium Association, without Landlord's prior written consent, which will not be unreasonably conditioned, denied, or delayed. However, a supplemental declaration annexing a future stage of the Condominium by SAP Hangar Condominium LLC will not require the signature or joinder or signature of Landlord. 4.2 Compliance with Law and Covenants. Tenant, throughout the Term and at its sole expense: 4.2.1 will comply promptly and fully with (a) all laws, ordinances, notices, orders, rules, regulations and requirements of all federal, state' aria municipal governments and all departments, commissions, boards and officers thereof, (all of which are referred to collectively as "Legal Requirements"); and (b) the provisions of the Permitted Encumbrances, all if and to the extent that any of the Legal Requirements or the said provisions relate to any or all of the Premises, the Improvements, the fixtures and equipment upon the Premises, or the use or manner of use thereof, whether any of the foregoing are foreseen or unforeseen, or are ordinary or extraordinary; 4.2.2 must keep in force throughout the Term all licenses, consents and permits required from time to time by applicable law to permit the Premises to be used in accordance with this Lease; 4.2.3 must not take or fail to take any action, as the result of which action or failure to act Landlord's estate, right, title or interest in and to any or all of the Premises or the rest of the Premises might be impaired; and 4.2.4 must not (either with or without negligence) (a) cause or permit the escape, disposal, or release of any Hazardous Materials, or (b) allow the storage or use of Hazardous Materials in violation of Environmental Laws, or (c) allow any such materials or substances to be brought onto the Premises. However, this paragraph 4.2.4 does not prohibit the safe and lawful use and storage of the following (so long as such items are used, stored, handled, transported, and disposed of in compliance with Environmental Laws): (1) pre -packaged supplies, cleaning materials and petroleum products in such quantities and types customarily used for commercial and aviation purposes; (2) cleaning materials, and other items sold in pre -packaged containers for consumer use in such quantities and types customarily found in comparable commercial and aviation properties and which are used by Unit Owners, tenants, and occupants of Units in the Premises; and (3) petroleum products, fuels, or hydrocarbons used in the operation and maintenance of motor vehicles from time to time located on the Premises' Common Areas or aircraft in such quantities and types customarily used in the operation and maintenance of comparable aircraft hangar or office properties, as applicable to the type of Unit and use, except that no storage of flammables is permitted in the Premises except in fire department approved containers of 5 gallons or less or in aircraft tanks as fuel. 9 4.3 Mechanics' or Other Liens. 4.3.1 Tenant must: (a) within 30 days after it is filed or claimed, have released (by bonding or otherwise) any mechanics', materialman's or other lien filed or claimed against any or all of the Premises or any other property owned or leased by Landlord, by reason of labor or materials provided for or about any or all of the Premises, or the rest of the Improvements or the Premises during the Term, or otherwise arising out of Tenant's use or occupancy of any or all of the Premises, the Units, or the rest of the Improvements or the Premises, and (b) defend, indemnify and hold harmless Landlord against and from any and all liability, claim of liability or expense (including but not limited to that of reasonable attorneys' fees) incurred by Landlord on account of any such lien or claim. 4.3.2 If Tenant fails to discharge_any.such lien within 60 days after .it first becomes effective against any of the Premises or known to Tenant, whichever is later, then, in addition to any other right or remedy held by Landlord on account thereof, Landlord may (a) discharge it by paying the amount claimed to be due or by deposit or bonding proceedings, or (b) in any such event compel the prosecution of any action for the foreclosure of any such lien by the lien or and pay the amount of any judgment in favor of the lien or with interest, costs and allowances, or bo th (a) and (b). Tenant must reimburse Landlord promptly upon Landlord's demand therefor for any amount paid by Landlord to discharge any such lien and all expenses incurred by Landlord in connection therewith. 4.3.3 Nothing in this Lease will be deemed in any way (a) to constitu to Landlord's consent or request, express or implied, that any contractor, subcontractor, laborer or materialman provide any labor or materials for any alteration, addition, improvement or repair to any or all of the Premises, or (b) to give Tenant any right, power or authority to contract for or permit to be furnished any service or materials, if doing so would give rise to the filing of any mechanics' or materialman's lien against any or all of the Premises or Landlord's Fee Estate or interest therein, or (c) to evidence Landlord's consent that the Premises be subjected to any such lien. 4.4 Waiver. Tenant waives all claims_ against Landlord for injury. or damage on or about the Premises and the Airport. However, Landlord will remain liable for injury or damage due to the grossly negligent or intentional acts of Landlord. 4.5 Indemnification of Landlord. TENANT WILL INDEMNIFY, DEFEND AND HOLD HARMLESS LANDLORD AND ITS MEMBERS, MANAGERS, OFFICERS, EMPLOYEES, AGENTS, AFFILIATES, SUCCESSORS AND ASSIGNS ("LANDLORD INDEMNIFIED PARTIES") AGAINST AND FROM ANY AND ALL CLAIMS, CAUSES OF ACTION, SUITS, JUDGMENTS, LIABILITY, COST OR EXPENSE (INCLUDING WITHOUT LIMITATION, ATTORNEYS' FEES AND COSTS) OF ANY NATURE WHATSOEVER (COLLECTIVELY "CLAIMS") ARISING, DIRECTLY OR INDIRECTLY, OUT OF OR IN ANY WAY RELATED TO: (A) THE USE, OCCUPANCY, CONDUCT, OPERATION OR MANAGEMENT OF THE PREMISES DURING THE TERM, OR (B) ANY BREACH OR DEFAULT BY TENANT IN PERFORMING ANY OF ITS OBLIGATIONS UNDER THIS LEASE OR APPLICABLE LAW INCLUDING, WITHOUT LIMITATION, THE CONDOMINIUM ACT, OR (C) ANY NEGLIGENT, IN 1hNTIONALLY TORTIOUS OR OTHER ACT OR OMISSION OF TENANT OR ANY OF ITS AGENTS, MEMBERS, OFFICERS, DIRECTORS, CONTRACTORS, EMPLOYEES, SUBTENANTS, OCCUPANTS, LICENSEES OR INVITEES DURING THE TERM, OR 10 (D) ANY DEFAULT OR BREACH BY 'TENANT OF ANY PERMI'1'1ED LEASEHOLD MORTGAGE, OR (E) THE PRESENCE ON OR UNDER OR . THE ESCAPE, SEEPAGE, LEAKAGE, SPILLAGE, EMISSION, DISCHARGE, MIGRATION OR RELEASE OR THREATENED RELEASE FROM THE PREMISES OF ANY HAZARDOUS MATERIALS BY TENANT DURING THE TERM. ALL REGARDLESS OF WHETHER SUCH CLAIM IS ASSERTED DURING OR Al. ThR THE EXPIRATION OF THE 'TERM OR ANY EARLIER TERMINATION OF THIS LEASE BUT EXCLUDING, HOWEVER, ANY LIABILITY, CLAIM OF LIABILITY OR EXPENSE CAUSED WHOLLY AND DIRECTLY BY LANDLORD, ITS MEMBERS, DIRECTORS, OFFICERS, EMPLOYEES, OCCUPANTS, INVITEES, GUESTS, OR AGENTS. NOTWITHSTANDING THE FOREGOING, TENANT WILL INDEMNIFY LANDLORD AGAINST DAMAGE OR INJURY OCCASIONED SOLELY BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LANDLORD OR ITS MEMBERS, AGENTS, CONTRACTORS, LICENSEES, INVITEES, OR EMPLOYEES BUT ONLY TO THE EXTENT SUCH DAMAGE OR INJURY ARISES FROM PERILS AGAINST WHICH TENANT IS REQUIRED BY THIS LEASE TO INSURE. TENANT WILL DEFEND ANY SUCH CLAIM AT TENANT'S SOLE EXPENSE, BY COUNSEL REASONABLY SATISFACTORY TO LANDLORD. All references to Landlord in this paragraph include Landlord's members, officers, agents, and employees. All references to costs in this paragraph include expert witness fees and attorneys' fees. 4.6 General Use of T-Hangar Units. The T-Hangar Units may be used by Tenant for storage of aircraft and for ordinary and routine maintenance, and for repair, maintenance, and assembly of aircraft for pay and for ancillary storage and business activities related to aircraft and flying. No T-Hangar Unit may be used for storage of personal items not related to aviation or to the aviation -related business operated in the T- Hangar Unit in the ordinary course, unless approved in writing by Landlord. No painting of vehicles or aircraft is allowed in the Units if such activity would require permits, additional ventilation (such as a hood or air filtration system) or licensure under any applicable laws: No storage of flammables is permitted except in fire department approved containers and amounts, or in aircraft tank(s) in a Unit. No open flame welding, grinding, metal polishing, or related activities will be conducted in the Units. Tenant must control the conduct and demeanor of its occupants, subtenants, employees, and invitees, and of those doing business with it, in and around the Premises, and will take all steps necessary to remove persons whom Landlord may, for good and sufficient cause, deem objectionable. Tenant will keep the Premises clean and free of debris at all times. In utilizing the Units during the term of this Lease, Tenant agrees to and will comply with all applicable ordinances, rules, and regulations established by any federal, state, or local government agency, by Landlord, by Sisters Airport, or by ODA. SECTION 5. INSURANCE. 5.1 Insurance to be Maintained by Tenant. Tenant will maintain at its expense throughout the Term hazard insurance for all Improvements constructed on the Premises. Such insurance will be written on a special form of loss, with limits equal to the full value of the improvements, on a replacement cost basis without co-insurance. During the term of its occupation of the Premises Tenant must maintain a policy or policies of insurance covering loss or damage from fire, with standard extended coverage and "all risk" endorsements for 100 percent of the current replacement'cost'of the Improvements, and during construction of the Improvements, Tenant must maintain builder's risk coverage. Tenant must also maintain a comprehensive general liability insurance policy on an occurrence basis, with limits of at least $1,000,000 per occurrence, $2,000,000 aggregate, with $5,000,000 of umbrella coverage, naming the Landlord as an additional insured. All insurance coverages will have waiver of subrogation provisions. Approval, disapproval, or failure to act by Landlord regarding any insurance applied by Tenant will not relieve Tenant of 11 full responsibility or liability for damages or accidenfs as set forth in this Lease. Neither will the bankruptcy, insolvency, or denial of liability by the insurance company exonerate Tenant from any such liability. Upon submission of the Leasehold Estate to the Condominium, the Condominium Association will obtain property insurance for the Premises and Improvements pursuant to the Condominium Bylaws and the Condominium Act, which will be deemed satisfaction of Tenant's insurance obligations in this paragraph. However, if the Condominium Bylaws or supplemental declaration annexing additional units to the Condominium provides for a unit owner of a particular Unit or classification of Unit to maintain the property insurance policies covering loss or damage from fire and other casualties, the unit owner of such a Unit will bear the responsibility of Tenant hereunder for the policies required above except for the umbrella coverage. Failure to carry the policies required by the Bylaws 5.2 Insureds. Each such policy must name as insureds Tenant, Landlord, and as additional insureds, any Permitted Lender. 5.3 Insurer. All insurance required and all renewals of insurance must be issued by companies of recognized responsibility licensed to issue such policies and otherwise transact business in the State of Oregon. All insurance policies will expressly provide that such policies will not be canceled or altered without 30 days' prior written notice to Landlord, and -any other named insured, in the case of "All Risk" coverage insurance, and to Landlord, and all other named insureds, in the case of general liability insurance. Such insurance will, to the extent obtainable, provide that no act or omission of Tenant which would otherwise result in forfeiture or reduction of the insurance will affect or limit the obligation of the insurance company to pay the amount of any loss sustained; and will, to the extent obtainable, contain a waiver by the insurer of its rights of subrogation against Landlord. 5.4 Evidence. Upon Landlord's written request, Tenant will deliver to Landlord no later than the Commencement Date an original or a signed duplicate copy of each such policy, and at least 30 days before any such policy expires, Tenant will deliver to Landlord an original or a signed duplicate copy of a replacement policy therefor. All general liability, property damage liability, and, casualty policies maintained by Tenant will be written as primary policies, not contributing with and not in excess of coverage that Landlord may carry. SECTION 6. PERMITTED LEASEHOLD MORTGAGES. 6.1 Permitted Loans. 6.1.1 By signing this Lease, Landlord permits SAP Hangar Condominium LLC to obtain one or more purchase money or construction loans and grant Mortgages and agrees to the establishment of the lien of such Mortgages, assignments of rents and leases, security agreement, and other collateral or security documents or instruments required by the lender or lenders providing such financings, and to all renewals, re -financings, extensions, modifications and replacements of the same, for the purposes of financing the Project as long as Tenant has provided copies of the loan documents to Landlord before closing on the loan and recording a Mortgage against the Leasehold Estate and Tenant's interest in this Lease. Such purchase money and construction loans are "Permitted Loans." 6.1.2 This paragraph 6.1.2 applies to Unit Owners. A Unit Owner may borrow money from one or more lenders to pay for a Unit and closing costs ("purchase money loan"). If the lender requires, the Unit Owner may mortgage, grant a security interest in, or deed its Unit (including an undivided interest in the common elements) in trust to a trustee for the benefit of a lender to secure payment of the purchase money loan (collectively, "grant a security interest" or "security agreement"). A Unit Owner may grant such Mortgage only with the prior, written permission of Landlord or its designee. Any purchase money loan secured by a security agreement in the Unit that Landlord has permitted in writing is a Permitted 12 Loan under this Lease. The term "Permitted Loan" includes any security agreement securing payment of the Permitted Loan, any documents related to the Permitted Loan creating a security interest in the Unit, and all associated loan documents that the Permitted Lender requires to make the Permitted Loan. 6.2 Mortgage Requirements 6.2.1 Future Fee Mortgages. Tenant shall not place or create any Mortgage, deed of trust, or other lien or encumbrance against Landlord's Fee Estate or in or under Landlord's interest in this Lease, and all financing of the Premises by Tenant will, to the extent the same is secured by the Premises or any interest therein but secured by one or more Leasehold Mortgages pursuant to the terms of this paragraph 6.2. 6.2.2 Nonmerger. This Lease will not terminate as to any holder of a Permitted Loan because of any conveyance of Tenant's leasehold interest to Landlord or of the Landlord's interest or the Fee Estate, or both, under this Lease to the Tenant. Accordingly, even if this Lease and the Fee Estate in the Premises are commonly held, they will still remain separate and distinct estates. They will not merge without consent by all Permitted Lenders, which consent will not be unreasonably withheld. Nothing contained in this paragraph may be deemed as impairing or otherwise limiting Landlord's rights to terminate this Lease as expressly provided in this Lease or to extend the Term beyond, the Termination Date. 6.2.3 Foreclosure Rights of Leasehold Mortgagee. Upon foreclosure or assignment in lieu of foreclosure of any of the Units, the most senior Permitted Lender of the foreclosed Unit will have the right to acquire the Lease (or portion of the Lease) and the Leasehold Estate as to such Unit in its own name. In the event that a portion of Tenant's Leasehold Estate is acquired by any Permitted Lender, or its nominee or designee, then such Permitted Lender, or its nominee or designee, will also have the right to further assign such portion of the Leasehold Estate to a third party with the consent or approval of Landlord, which will not be unreasonably conditioned, delayed or denied. 6.2.4 Voluntary Surrender. Landlord will not accept a voluntary surrender of the Lease at any time during which the Leasehold Estate is encumbered by a Permitted Loan. SECTION 7. REPAIRS AND MAINTENANCE Tenant must, throughout the Term and at its expense, at all times keep the Premises in good order and condition and promptly make any and all repairs, ordinary or extraordinary, foreseen or unforeseen, to the Premises (including but not limited to landscaping) that are necessary to maintain it in good condition (including but not limited to any and all such repairs to the plumbing, heating, ventilating, air-conditioning, electrical and other systems for the furnishing of utilities or services to the Premises), and replace or renew the same where and when necessary using replacements of at least equal in quality and usefulness to the original improvements, equipment or things so replaced (including but not limited to lighting fixtures, hangar aircraft door motors, strapping, and door openers), so that Tenant can surrender the Premises at the time of any termination of the Lease or at the expiration of the Term in the condition required by this Lease. Following sale of Units by conveyance of partial assignments to Condominium Unit Owners, this maintenance obligation will be deemed delegated to the Condominium Association of the Condominium to the extent of the Association's responsibility for maintenance, repair, and replacement of the common elements as set forth in the Condominium Declaration and Bylaws. SECTION 8. LANDLORD'S OBLIGATIONS AND RIGHT OF ENTRY. 8.1 Landlord's Obligations. Landlord, at its expense, must keep and maintain at all times following mutual execution of this Lease until the expiration or earlier termination of this Lease the Common Areas in compliance with all applicable laws and regulations and in good repair and appearance and perform 13 all maintenance (including snow and ice removal), and make all necessary repairs and replacements, necessary to that end over the Common Areas at its own expense. 8.2 Landlord's Right of Entry. Subject to the rights of any Unit Owner, Landlord and its authorized representatives are entitled to enter the Premises at any time during Tenant's business hours (prior to conveyance to Unit Owners) and at any other reasonable time to (a) inspect the Premises at any time without notice and (b) make any repairs to the Premises, or (c) take any other action therein which is required by applicable law, or which Landlord is permitted to make by any provision of this Lease, after giving Tenant at least 48 hours' notice of Landlord's intention to take such action (provided, that in any situation in which, due to an emergency or otherwise, the health, welfare or safety of the occupants of the Premises or physical condition of the Premises would be unreasonably _jeopardized unless Landlord were to take such action immediately, Landlord will give only such notice, if any, to Tenant as is reasonable under the circumstances, and may enter the same at any time). Nothing in this paragraph may be deemed to impose any duty upon Landlord to make any emergency repair or take any such emergency action, and Landlord's performance of repairs will not constitute a waiver of Landlord's right under this Lease to have Tenant perform such work. Landlord may, while taking any such action upon t he Premises, store at the Premises (in the common element areas after development of the Project) any and all necessary materials, tools and equipment, but Tenant will have no liability to Landlord for any damage to or destruction of any such materials, tools and equipment, except if and to the extent that such damage or destruction is proximately caused by the negligence or intentional conduct of Tenant or its agents and employees. Landlord will not be liable to Tenant for any inconvenience, annoyance, disturbance, loss of business, or other damage sustained by Tenant by reason of Landlord's making repairs or taking such emergency action, or on account Landlord bringing materials, supplies, or equipment onto the Premises during the course of such emergency repairs. Tenant's obligations under the provisions of this Lease will not be affected by the performance of such emergency work by Landlord. SECTION 9. FIRE AND OTHER CASUALTIES. 9.1 Restoration and Application of Insurance • Proceeds. If any or all of the Premises is damaged or destroyed, Tenant must restore the Premises, adjust all losses, and apply all insurance proceeds as required by the Condominium Declaration and the Condominium Act. Anything in this Lease to the contrary notwithstanding, upon the expiration or earlier termination of this Lease before such restoration is completed free and clear of any such liens, any insurance proceeds not previously applied to the cost of such restoration will be paid to the Permitted Lenders, as their interests may appear, for application in accordance with their loan documents, and the balance, first to the Landlord for the payment of any outstanding Rent and the rest to Tenant. 9.2 No Termination. Except during the last 18 months of the Term, no total or partial damage to or destruction of any or all of the Premises will entitle Tenant to surrender or terminate this Lease or relieve Tenant from its liability to pay in full the Rent, any Additional Rent, and all other sums and charges that are otherwise payable by Tenant under this Lease. SECTION 10. CONDEMNATION. 10.1 Notice of Taking. Promptly upon receipt by either Landlord or Tenant of notice of the institution of any proceedings for the taking br condemnation of all or a portion of the Premises by the government of the United States, State of Oregon, City of Sisters, or any other governmental authority, or any corporation under the right of eminent domain (a "Taking"), the party receiving such notice will promptly give notice thereof to the other and to any Pe rmitted Lenders, and such other party may also appear in such proceeding and be represented by counsel, who may be counsel for the party receiving such notice. 14 10.2 Special Account. The full amount of any award whether prior to or final for any Taking (the "Award"), will, notwithstanding any allocation made by the awarding authority, be. paid, and allocated as set forth below provided that there will first be deducted from the Award in the order stated (A) all reasonable fees and expenses of collection, including but not limited to, reasonable attorneys' fees and experts' fees, which must be paid to the party which has incurred such fees and expenses, (B) any rental outstanding prior to the Taking owed by Tenant, which must be paid to Landlord, (C) any outstanding amounts secured by Permitted Lenders to the extent required under such Leasehold Loans, which must be paid to the Permitted Lenders in their respective order of priority. Any portion of the Award remaining after the deductions in sub -paragraphs (A)-(C) of this paragraph 10.2 will be paid to Tenant or following partial assignments to Unit Owners, to the Unit Owners in the same proportion as their several undivided interests in the common elements. — -- 10.3 Total Taking. In the event of a permanent Taking of the fee title to or control of the Premises or of the entire Leasehold Estate (a "Total Taking'"), this Lease will terminate as of the effective date of such Total Taking, without liability or further recourse to the parties so long as any Rent payable or obligations owed by the Tenant to the Landlord as of the date of the Total Taking will be paid or otherwise carried out in full. 10.4 Partial Taking. Procedures and Criteria for Course of Action. In the event of a permanent Taking of all or less than all of the Premises (a "Partial Taking"), (a) if it is determined that the continued use and occupancy of the remainder of the Premises by the Tenant is or could reasonably be made to be economically viable, structurally sound, consistent with the terms and conditions of the Permitted Lender, and otherwise feasible based upon the amount of eminent domain proceeds and any available other. funds of Tenant that would be demonstrably available for the purpose of paying for such restoration, then the Premises will be restored pursuant to this Lease and the terms of the most senior Permitted Loan; or (b) if the continued use and occupancy of the remainder of the Premises by Tenant is not or could not be made to be economically viable, structurally sound, consistent with all Permitted Loans, and the Condominium is vacated as provided in the Condominium Declaration, Bylaws, and the Condominium Act, then this Lease may be terminated pursuant to paragraph 10.6. Tenant will within 90 days after the effective date of the Partial Taking give notice to the Landlord, together with back up analysis, as to whether it elects to restore the Premises or to terminate this Lease pursuant to this Section 10. Tenant's election to terminate this Lease pursuant to this paragraph 10.4 must be reasonable (and comply with the requirements of all Permitted Loans). 10.5 Restoration. If a decision is made pursuant to paragraph 10.4 to restore the remainder of the Premises subject to the terms of the most senior Permitted Loan and the Condominium Bylaws, Tenant must, with Landlord's consent, which consent may not be unreasonably withheld, prepare, and approve plans and specifications to modify the remaining Premises. Upon approval of said plans, Tenant will promptly proceed, at its expense, to commence and complete the restoration pursuant to the provisions of Section 12 and the most senior Permitted Loan. 10.6 Termination upon Non -Restoration. Following a Partial Taking, if a decision is made pursuant to paragraph 10.4 that the remaining portion of the Premises is not to be restored, Tenant will surrender the Premises to Landlord and this Lease will thereupon be terminated without liability or further recourse to the parties, so long as any rental or obligations owed by Tenant to Landlord as of the date of the Taking has been paid in full. The Tenant's Award will be applied as set out in paragraph 10.2. 15 10.7 No Waiver. No provisions in this Lease limits the rights of either Landlord or Tenant to seek compensation from a condemning authority as pirovided by statute, common law,"the State of Oregon, or the United States Constitution. SECTION 11. ASSIGNMENT. 11.1 To Unit Owners. Landlord acknowledges and agrees that Tenant will assign and transfer by partial assignment by deed its Leasehold Estate for Units in the Condominium to various Unit Owners. By the Unit Owners' acceptance of such assignments and conveyances said Unit Owners will assume and agree to perform the terms, covenants, and provisions of this Lease, excepting those that expressly apply only to the `original' Tenant. A Unit may be transferred by a Unit Owner any number of times during the Term of the Lease. 11.2 Separate Leases. Upon the partial assignment of this Lease to a Unit Owner, the Leasehold Estate of such Unit Owner will be deemed a separate Leasehold Estate subject to this Lease as a separate Lease between Landlord and Unit Owner. Such separate Leasehold Estate will be of the Unit Owner's separate Unit space and undivided interest in the common elements in which the Unit Owner has an interest. 11.3 Declaration and Bylaws of Condominium. 'Tenant will be executing various partial assignments of this Lease, each covering one Unit, in conformance with the Condominium Declaration and Bylaws. Each Unit Owner assuming and accepting such partial assignme nt of this Lease must conform to the terms, conditions, obligations and restrictions of the Condominium Declaration and Bylaws and duly adopted rules and regulations in respect of the Unit Owner's Unit and interest in the common elements. Each Unit Owner will be a voting member of the Condominium Association. Performance by the Association of any obligation required of the Unit Owner as Tenant under this Lease will be deemed performance by the Unit Owner under this Lease. No amendment of the Condominium Declaration or Bylaws may contravene or amend this Lease. 11.4 Novation. When Tenant has completed construction of the Project and has sold all the Units in the Condominium and turned over to the Association to the Unit Owners, each Party to this Lease agrees that upon written request of SAP Hangar Condominium LLC to Landlord, Tenant will be released from the terms and provisions of this Lease and the Unit Owners will be severally substituted in this Lease as Tenant(s) as to their respective Units, and the obligation of each Unit Owner will be to perform the ongoing obligations of Tenant (except as expressly confined to the `original' Tenant or assigned to the Condominium association in the governing documents) and to comply with the terms and conditions of this Lease as to his or her Unit as if there were the same number of -separate Leases as there are Units- to which the Landlord and each respective Unit Owner would be parties. SECTION. 12. DEFAULT. 12.1 Definition. As used in this Lease, each of the following events constitute an "Event of Default": 12.1.1 if Tenant fails (a) to pay any Rent or other sum which it is obligated to pay under this Lease, when and as it is due and payable under this Lease without demand, (b) to perform any of its obligations under this Lease, or (c) to comply with any of its covenants under this Lease; or 12.1.2 if Tenant defaults in performing any of its obligations under any Permitted Loan covering any or all of the Leasehold Estate, which default is not cured by Tenant within any express cure period permitted under any such Mortgage; or 16 12.1.3 if Tenant fails to comply in all respects with Tenant's obligations under any instrument, lease, mortgage or other agreement to which Tenant or Landlord is a party and for which a default under this Lease would constitute a default under such instrument, lease, mortgage, or other agreement, which failure is not cured by Tenant within any permissible cure period provided such instrument, lease, mortgage, or other agreement. 12.1.4 if Tenant is in default under the Condominium Declaration or Bylaws, or under the access agreement required thereunder with Sisters Runway Inc., or its successors and assigns, beyond any cure period provided thereunder. 12.1.5 Provided, however, that the failure of a Unit Owner to pay its share of any Rent when due, including Additional Rent, to comply with any of its covenants under this Lease otherwise, will be an Event of Default, which will permit the Landlord or Permitted Lender or both, to exercise its remedies under this Lease against such Unit Owner (including any right of termination) but it will not permit the Landlord or Permitted Lender to (i) terminate the Ground Lease as a whole or terminate the interest of a different Unit Owner who makes timely payment of the Unit Owner's share of any Rent due under this Lease and otherwise complies with -the covenants (other than -the -payment of rent) of this Lease or (ii) terminate the general common elements of the Condominium located on the Land. 12.2 Notice to Tenant; Grace Period. Anything in this Section to the contrary notwithstanding, if an Event of Default occurs, Landlord may not exercise any right or remedy on account thereof that it holds under this Lease or applicable law unless and until: 12.2.1 Landlord gives written notice to Tenant at of the Event of Default at the address of the original Tenant in the first paragraph of this Lease or to Unit Owner's Unit address, as applicable; and 12.2.2 Tenant fails to cure such Event of Default (a) if such Event of Default consists of a failure to pay money, within 30 days after Landlord gives such written notice, or (b) if such Event of Default consists of something other than a failure to pay money, within 60 days after Landlord gives such written notice. 12.2.3 Notwithstanding the terms of sub -paragraphs 12.2.1 and 12.2.2, at any time while the Leasehold Estate is subject to the Condominium Declaration, an Event of Default by one Unit Owner will not be an Event of Default by any other Unit -Owner-"" In the event of such an Event of Default, Landlord may exercise its remedies under this Lease as to the defaulting Unit Owner and his or her portion of the Leasehold Estate and will recognize the rights of the other Unit Owners so long as such other the Unit Owners have paid their respective share of Rent to Landlord when due, are using, maintaining, and repairing their respective Units in the manner required by this Lease and the Condominium Declaration, and such Unit Owners have not otherwise breached the terms of this Lease. If Landlord exercises its remedy of termination with respect to a portion of the Leasehold Estate, the Condominium will remain in place, Landlord will succeed to the interests of the defaulting Unit Owner under the Condominium Declaration, and Landlord will be treated as a foreclosing "mortgagee" (as that term is defined in the Condominium Declaration) as to liability for unpaid assessments and liens on the Unit of the defaulting Unit Owner. If the Condominium Association fails in its responsibilities to perform such maintenance or to deliver Rent paid by Unit Owners to Landlord, Landlord may not terminate the interest of a Unit Owner, evict the Unit Owner, or otherwise enforce any remedies against an individual Unit Owner by reason of such failure without first notifying the Unit Owner in writing and affording such Unit Owner the right to cure the default with respect to its Unit by paying his or her Rent or otherwise performing the obligations of Tenant directly to Landlord. Unit Owners will be given the same periods within which to cure such defaults that Tenant has under this paragraph 12.2, after being given notice at their respective Units. No Unit Owner will be excused from effecting such cure as a condition to preserving its rights by reason of his or her having paid Rent to the Condominium Association, 17 and Landlord will have no liability to any Unit Owner for any duplication in such payment. Each Unit Owner that pays its Rent directly to Landlord following Landlord's written demand therefor must continue to make such payments directly to Landlord until notified by Landlord in writing to the contrary. Nothing in this paragraph 12.2.3, however, prevents Landlord from seeking specific enforcement of any covenant contained in this Lease. No Unit Owner may be evicted due to any failure by the Condominium Association so long as the applicable non -defaulting Unit Owner has paid its pro rata share of the funds necessary to correct such default. 12.3 Landlord's Rights on Event of Default. 12.3.1 If an Event of Default occurs, Landlord may (subject to the provisions of paragraph 12.2) take any or all of the following actions: (a) Re-enter and repossess any or all of the Premises and any or all Improvements and expel the defaulting original Tenant, and after conveyances of Units to Unit Owners, to re-enter and repossess the Unit of the defaulting Unit Owner, and expel the defaulting Unit Owner from his or her Unit together with anyone claiming rights through the defaulting Unit Owner to the subject Unit; (b) Declare the entire balance of the Rent for the remainder of the Term to be due and payable immediately and collect such balance in any manner not inconsistent with applicable law. If, however, Landlord elects to relet any or all of the Premises following such acceleration of Rent, the provisions of subparagraph 12.3.1(d) will be applicable to the rights of Landlord and Tenant. Accelerated payments payable under this Lease do not constitute a penalty or forfeiture or liquidated damages but merely constitute payment o f Rent in advance; (c) subject to paragraph 12.2.3 and protections provided to Permitted Lenders pursuant to Section 6, terminate this Lease, or the assigned portion conveyed to the defaulting Unit Owner, by giving written notice of such termination to Tenant (or such Unit Owner, as applicable), which termination will be effective as of the date of such notice or any later date specified by Landlord in the termination notice. Without limiting the generality of the just-prioi sentence, Landlord will not be deemed to have accepted any abandonment or surrender by Tenant of any or all of the Premises or Tenant's Leasehold Estate under this Lease unless Landlord has advised Tenant expressly and in writing of Landlord's acceptance. On the date specified in such termination notice, Tenant's, or such Unit Owner's right to possession of the Premises will cease, and the Leasehold Estate conveyed by this Lease upon Tenant or such Unit Owner following conveyance of a Unit, will re -vest in Landlord; (d) cure such Event of Default in any other manner; or (e) pursue any combination of such remedies or any other right or remedy available to Landlord on account of such Event of Default under this Lease at law or in equity. Nothing in this Section 12 limits or prejudices Landlord's right to prove for and obtain as damages, by reason of such termination or partial termination as applicable with a default Unit Owner, an amount equal to the maximum allowed by any statute or rule of law in effect at the time when, and governing the proceedings in which, such damages are to be proved. 12.3.2 No such expiration -or 'termihation of this Lease, or summary dispossession proceedings, abandonment, reletting, bankruptcy, re-entry by Landlord or vacancy, will relieve Tenant of any of its liabilities and obligations under this Lease (whether or not any or all of the Premises are relet), and Tenant will remain liable to Landlord for all damages resulting from any Event of Default, including but not 18 limited to any damage resulting from the breach by Tenant of any of its obligations under this Lease to pay Rent and any other sums which Tenant is obligated to pay under this Lease. 12.3.3 If an Event of Default occurs, Tenant will, immediately on its receipt of a written demand from Landlord, reimburse Landlord for (a) all expenses (including but not limited to any and all repossession costs, management expenses, operating expenses, legal expenses and attorneys' fees) incurred by Landlord (i) in curing or seeking to cure any Event of Default, (ii) in exercising or seeking to exercise any of Landlord's rights and remedies under this Lease at law or in equity on account of any Event of Default, (iii) otherwise arising out of -any Event of Default; or -(iv) -(regardless of whether it constitutes an Event of Default) in connection with any action, proceeding or matter of the types referred to in paragraphs 12.3.1 and 12.3.2, plus interest on all such expenses, at the highest rate then permitted by applicable law, all of which expenses and interest will be Additional Rent and will be payable by Tenant immediately on demand by Landlord. SECTION 13. CONDITION OF TITLE AND PREMISES. 13.1 No Warranties. '1'hNANT HAS EXAMINED THE PREMISES AND IS FAMILIAR WITH THEM. 'TENANT ACKNOWLEDGES AND AGREES THAT THE PREMISES ARE LEASED TO TENANT "AS IS, WHERE IS, AND WITH ALL FAULTS." LANDLORD HEREBY EXPRESSLY DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WRI1"1'1N OR ORAL, WITH RESPECT TO THE PREMISES, INCLUDING WITHOUT LIMITATION ANY REPRESENTATIONS OR WARRANTIES AS TO (A) THE NATURE OR CONDITION, PHYSICAL OR OTHERWISE, OF THE PREMISES OR ANY ASPECT THEREOF, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF HABITABILITY, SUITABILITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE; (B) THE SOIL CONDITIONS,DRAINAGE CONDITIONS, TOPOGRAPHICAL FEATURES, OR CIRCUMSTANCES WHICH AFFECT OR MAY AFFECT THE PREMISES OR ANY USE TO WHICH TENANT MAY PUT THE PREMISES; (C) ANY CONDITIONS AT OR WHICH AFFECT OR MAY AFFECT THE PREMISES WITH RESPECT TO ANY PARTICULAR PURPOSE, USE, DEVELOPMENT POTENTIAL OR OTHERWISE; (D) ANY ENVIRONMENTAL, GEOLOGICAL, STRUCTURAL, OR OTHER CONDITION OR HAZARD OR THE ABSENCE THEREOF, BEFORE, NOW, OR AFTERWARDS AFFECTING IN ANY MANNER THE PREMISES, INCLUDING, BUT NOT LIMITED TO, THE ABSENCE OF ASBESTOS, LEAD PAINT, OR ANY OTHER ENVIRONMENTALLY HAZARDOUS SUBSTANCE ON, IN, UNDER OR ADJACENT TO THE PREMISES. 13.2 Quiet Enjoyment. Landlord hereby: 13.2.1 covenants that, at the time of the execution and delivery of this Lease by the parties, Landlord (a) is the owner of a fee simple estate in and to the Premises, subject only to the Permitted Encumbrances, and (b) has the full right, power, and authority to enter into this Lease and to lease the Premises; and 13.2.2 warrants that Tenant will have quiet and peaceful possession of the Premises during the Term, according to the terms and conditions of this Lease, so long as all of Tenant's obligations are timely performed, except if and to the extent that Tenant's possession is terminated pursuant to Section 11 or 12 or any other provision of this Lease. 13.3 Limitation on Liability. Nothing in this Lease may be deemed to impose on Landlord any liability on account of any act or failure to act by any person other than Landlord (or, where expressly so provided, by Landlord's agents and employees). 19 SECTION 14. NOTICES. Any notice, demand, consent, approval, request or other communication or document to be provided to Landlord, Tenant, the Condominium Association, or a Permitted Lender must be in writing and will be deemed to have been provided on the earlier of (1) 48 hours after being sent as Priority, certified or registered mail in the United States mails, postage prepaid, return receipt requested, or (2) the next business day after having been deposited (in time for delivery by such service on such business day) with an overnight national courier service, or (ii) the same day if the patty's receipt is acknowledged in writing when notice is delivered by hand or other actual delivery to such party. Any notice required or permitted to be given under this Lease will be deemed given if provided in accordance with this Section 14 and addressed to the original Tenant's address written in the first paragraph of this Lease or to a Unit Owner's Unit. Any party may change its address for notice purposes by timely notice to the other party. SECTION 15. LEASEHOLD MORTGAGEE PROTECTIONS 15.1 Leasehold Mortgagees. Landlord agrees that to the extent a Unit is encumbered by a Permitted Loan, and from and after the date Landlord receives written notice of the Permitted Loan, the name of the Permitted Lender and its address for notices, Landlord must afford Permitted Lenders the following rights and options: 15.1.1 Landlord must provide each Permitted Lender with a true and correct copy of each notice Landlord gives to the Tenant, Condominium Association, or to the Unit Owner, which alleges any default under this Lease or the encumbered Unit or that commences any legal proceedings to enforce any remedy as a result of such default; 15.1.2 Each Permitted Lender will have the right to cure any default under this Lease within the same period of time afforded to the Tenant under this Lease (including for the avoidance of doubt, to the Unit Owners) and by paying the same amount or performing the same act that would otherwise be required of the Tenant. However, in no event will such right extend for less than 30 days after Landlord's written notice to said Permitted Lender and, in the event of a nonmonetary default that requires said Mortgagee's possession of the Premises or the Unit to be cured by the Permitted Lender, such right will extend for not less than 30 days after such Mortgagee obtains a right of entry or a right of possession through a receivership, foreclosure, or other remedy provided for in its loan documents, or at law so long as such remedy is commenced within 30 days after Landlord gives the Permitted Lender such notice, is continuously pursued after the notice is given with due diligence, and Landlord is given written notice of the commencement and conclusion of such proceedings, -in each event within 10 business days afterwards. A Permitted Lender will not be required to pay any lien or encumbrance against the Premises or Unit which is subordinate to its Permitted Loan and Landlord will accept a cure tendered by a Permitted Lender (i) even if the Lender is unable as a practical matter to effect cures of certain other nonmonetary defaults, such as the bankruptcy of the Tenant or Unit Owner or the failure of the Tenant or Unit Owner to have given any required notice, consent or certificate, or (ii) if this Lease is rejected in bankruptcy or otherwise terminates by operation of law as a result of bankruptcy, Landlord agrees to grant to the Permitted Lender a new lease for the affected Unit on substantially the same terms and conditions for the then -unexpired portion of the rejected Term; 15.1.3 Landlord agrees that it will not accept a surrender of or terminate this Lease and will not modify the amount of Rent due under this Lease or any other material terms of this Lease that would affect a Unit or Unit Owner in any material respect so long as the Permitted Lender remains outstanding; and 15.1.4 No conveyance by Declarant or acceptance by a Unit Owner of a Fee Estate Deed, as defined below, will terminate, or change the priority of the intervening interest of a Permitted Lender, and such intervening Permitted Loan and security interest in a Unit, including the Unit's associated undivided interest in the common elements (whether in fee or leasehold), will remain in full force and effect. SECTION 16. GENERAL. 16.1 Effectiveness. This Lease becomes effective on and only on its execution and recordation in the Land Records. 16.2 Amendment. This Lease may be amended only by an instrument executed and delivered by each party, subject to any prior approvals required in this Lease, and only with the written consent of all Permitted Lenders, which consent will not be unreasonably withheld, conditioned, or delayed. However, following the establi shment of the Condominium and turnover of the Association to Unit Owner control, the Association will be the attorney -in -fact for each Unit Owner in respect of amendment of this Lease, including without limitation in the exercise of an option to renew and the determination of the Base Rent for Renewal Term, the parties' intent being that the Lease as assigned will be uniform across Tenant and Unit Owners, unless such role is waived by Landlord in its discretion because Landlord is willing to negotiate and enter a Lease amendment with an individual Unit Owner. Notwithstanding the requirements for amendments otherwise, in exercising the option to expand the Premises pursuant to Section 17, Landlord and SAP Hangar Condominium LLC may enter an amendment to this Lease for purposes of the expansion, which will not require the consent, joinder, or signature of any Unit Owner. All amendments or a memorandum thereof must be recorded in the Records of Deschutes County to be effective 16.3 Benefit and Burden. Subject to the foregoing provisions of this paragraph, this Lease is binding on and inure to the benefit of the parties and their respective heirs, personal representatives, successors and assigns in interest under this Lease. 16.4 Waiver. No party to this Lease will be deemed to have waived the exercise of any right is has under this Lease unless such waiver is made expressly and in writing (and, without limiting the generality of the foregoing, no delay or omission by any party in exercising any such right will be deemed a waiver of its future exercise). No such waiver made in anyinstance involving the exercise of any such right will be deemed a waiver as to any other such instance, or any other such right. Without limiting the generality of the foregoing, no action taken o r not taken by Landlo rd under this paragraph or any other provision of this Lease (including but not limited to Landlord's acceptance of the payment of Rent after an Event of Default occurs) will operate as a waiver of any right to be paid a late charge or of any other right or remedy which Landlord would otherwise have against Tenant on account of such Event of Default under this Lease or applicable law (Tenant hereby acknowledging that, in the interest of maintaining good relations between Landlord and Tenant, there may be instances in which Landlord chooses not immediately to exercise some or all of its rights if an Event of Default occurs). 16.5 Applicable Law. This Lease will be given effect and construed by application of the law of the State of Oregon, and any action or proceeding arising under this Lease must be brought in the courts of the State of Oregon. If any such action or proceeding arises under the Constitution, laws, or treaties of the United States of America, however, or if there is a diversity of citizenship between the parties to the action, so that it is to be brought in a United States District Court, it will be brought in the United States District Court sitting in Sisters, Oregon or any successor federal court having original jurisdiction. 16.6 Time of Essence. Time is of the essence of this Lease, except that, whenever the last day for the exercise of any right or the discharge of any o bligation falls on a Saturday, Sunday or statutory holiday, the 21 party having such right or obligation will have until 5:00 p.m. on the next succeeding day which is not a Saturday, Sunday, or statutory holiday to exercise such right or discharge such obligation. 16.7 Exhibits. Each writing or plat referred to in this Lease as being attached as an exhibit or otherwise designated in the body of this Lease as an attached exhibit is made a part of the Lease by its reference. 16.8 Severability. No determination by any court, governmental or administrative body or agency or otherwise that any provision of this Lease or any amendment hereof is invalid or unenforceable in any instance will affect the validity or enforceability of (a) any other such provision, or (b) such provision in any circumstance not controlled by such determination. Each such provision will remain valid and enforceable to the fullest extent allowed by, and will be construed wherever possible as being consistent, with, applicable law. 16.9 Prevailing Party. In the event eitherpartyunder this Lease initiates judicial action against the other in order to enforce the terms, covenants and provisions of this Lease, the non -prevailing party in such judicial action must reimburse the prevailing party in such judicial action for all expenses, fees, costs, including attorneys' fees incurred by the prevailing party in connection with such judicial action. SECTION 17. OPTION TO EXPAND LEASE. In consideration of the terms of this Lease, Landlord grants to SAP Hangar Condominium LLC, the option ("Option") to lease that portion of the Airport Development identified as the `Expansion Area" on Exhibit A-1 attached hereto on the terms and conditions in this Section 17. Tenant may exercise its option multiple times to lease the Expansion Space by giving written notice to Landlord of Tenant's exercise of its option no later than 11:59 pm (Pacific Time) on the 19th anniversary of the date of this Lease, at which time the Option will automatically terminate unless previously exercised. SAP Hangar Condominium LLC will have the right to assign the Option to a successor declarant of the Condominium or to a limited liability company in which SAP Hangar Condominium LLC or one or more of the members of SAP Hangar Condominium LLC is a member and in which such member has a controlling interest. Within 30 days after exercise of the Option, Landlord and SAP Hangar Condominium LLC (or assignee of the Option if the Option is assigned as provided above) will execute -an -addendum to this Lease which will add the Expansion Area, or a portion of it, to the leased Premises. The addendum will include a grant of lease by Landlord of the Expansion Area to Tenant (or assignee of the Option if the Option is assigned as provided above) on the terms and conditions of this Lease, and Tenant (or assignee of the Option if the Option is assigned as provided above) will lease the Expansion Area from Landlord on all of the same terms and conditions as set forth in this Lease. Following the execution of such addendum and completion of the construction of Improvements on the Expansion Area leased thereby, SAP Hangar Condominium LLC will submit such Expansion Area or portion thereof as a future stage of the Condominium by a supplemental declaration of annexation. The exercise of the Option and the addition of the Expansion Area or a portion thereof to the Premises will not require the consent or joinder of any Unit Owner. 22 IN WITNESS WHEREOF, each party has executed this Lease or caused it to be executed, on its behalf by its duly authorized representatives, the day and year first above written. LANDLORD: SISTERS AIRPORT PROPERTY LLC, an Oregon limited liability company By: .(LP rivnab(z_ STATE OF OREGON COUNTY OF Deg, VI ks y, This record was acknowledged before me on M a A, 23 , 2022 by J DC rw 0 tV\INVI — of Siste18- Altii-ott Property L C, an Oregon limited liability company, on its behalf. OFFICIAL STAMP NOTARY PUBUC - OREGON COMMISSION NO. 1020148 KATELYN ANN BERRY 4 MY COMMISSION EXPIRES JANUARY 12, 2026 ks‘ '',; , %.;-...4:1,.':;.;.1.:•-•::;',::,::...r.:1.:,.,f., cy, ,, /„?‘_, Notary Pu liet -1.7,Stae. 0t,.._!..r.. pn• „,,,2.;,,..,,c.,,, .,,,,,., ..- ..1?....•,..kn.:, ,,,•:. 23 TENANT: SAP Hangar Condominium LLC, an Oregon limited Liability company By: ---‘--7-2---Z- ____<._, ________ Benjamin Benson, its Manager STATE OF OREGON � COUNTY OF 6SGViU S This record was acknowledged before me on I r I� �•3 , 2022 by Benjamin Benson, Manager of SAP Hangar Condominium LLC, an Orego&limited liability company, on its behalf. OFFICIAL STAMP KATELYN ANN BERRY NOTARY PUBLIC • OREGON COMMISSION NO. 1020148 MY COMMISSION EXPIRES JANUARY 12, 2026 K Notary Public State of Oregon • 24 GROUND LEASE EXHIBIT A LEGAL DESCRIPTION OF PREMISES A tract of land situated in the northeast one -quarter of .Section 4, Township 15 South, Range 10 East, Willamette Meridian, Deschutes County, Oregon, being a portion of the land described in Exhibit B of the deed to Sisters Airport Property, LLC, recorded March 27, 2017, as Document No. 2017-11569, Deschutes County Deed Records, and being described as follows: Beginning at the Initial Point, being a 5/8-inch iron rod with a yellow plastic cap inscribed "AKS Engr." set at the most southerly comer of the "SAP Hangar Condominium", said point bears North 36°20'28" East, 916.60 feet from a 2-inch brass cap marking the center one -quarter of said Section 4; thence North 44°23'42" West, 191.68_ feet; thence North 41°24'20" East, 36.49 feet to a point of non -tangent curvature; thence northeasterly along the arc of a 32.50 foot radius curve (the radius point of which bears North 41°24'20" East) through a central angle of 90°00'00", 51.05 feet (chord bears North 86°24'20" East, 45.96 feet); thence North 41°24'20" East, 210.45 feet; thence South 48°35'40" East, 158.67 feet; thence South 41°24'20" West, 293.47 feet to the Initial Point. Contains 1.081 acres, more or less. Exhibit A GROUND LEASE EXHIBIT A-1 Lease Expansion Area Legal Description and Depiction (including Common Areas) A tract of land situated in the northeast one -quarter of Section 4, Township 15 South, Range 10 East, Willamette Meridian, Deschutes County, Oregon, being a portion of the land described in Exhibit B of the deed to Sisters Airport Property , LLC, recorded March 27, 2017, as Document No. 2017-11569, Deschutes County Deed Records, and being described as follows: Beginning at the southwest corner of Exhibit B of said Document No. 2017 -11569, said point being the intersection of the easterly right-of-way line (30.00 feet from centerline) of Camp Polk Road with the northerly right-of-way line (30.00 feet from centerline) of Barclay Drive, and bearing North 00°06'17" East, 488.34 feet and South 89°53'43" East, 30.00 feet from a 2-inch brass cap marking the center one -quarter of said Section 4; thence No rth 00°06' 17" East along the easterly right-of-way line of said Camp Polk Road, 100.61 feet to the westerly northwest corner of said Exhibit B, Document No. 2017-11569 tract; thence North 41 °24'20" East along the northwesterly line of said Exhibit B, Document No. 2017-11569 tract, 1127.24 feet; thence continuing along said northwesterly line North 41 °24'20" East, 356.23 feet to the southwesterly corner of that tract of land described in Document No. 2015-40685, Deschutes County Deed Records; thence North 81°34'40" East along the south line of said Document No. 2015-40685 tract, 33.98 feet to the west line of "Crosswind L andings", recorded in Plat Book I, Pages 798- 800, Deschutes County Plat Records; thence Sout h 00° 10' 16" West along said west line and its southerly extension, 954.62 feet to the northe rly right-of-way line of said Barclay Drive and a point of non -tangent curvature; thence southwesterly along said northerly right-of-way line on the arc of a 1856.28 foot radius curve right (the radius point of which bears North 30°55'01" West) through a central angle of 31°01' 18; 1005.05 feet (chord bears South 74°35'38" West, 992.82 feet); thence continuing along said northerly right-of-way line North 89°53'43" West, 54.95 feet to the Point of B eginning. EXCEPTING THEREFROM a tract of land situated in the northeast one -quarter of Section 4, Township 15 South, Rang e 10 East, Willamette Meridian, Deschutes County, Oregon, being a portion of the land desc ribed in Exhibit B of the deed to Sisters Airport Pro perty, LLC, recorded March 27, 2017, as Document No. 2017-11569, Deschutes County Deed Records, and being described as follows: Beginning at a 5/8-inch iron rod with a y ellow plastic cap inscribed "AKS Engr." set at the most southerly comer of the "SAP Hangar Condominium", said point bears No rth 36°20'28" East, 916.60 feet from a 2-inch brass cap marking the center one -quarter of said Section 4; thence North 44°23'42" West, 191.68 feet; thence North 41°24'20" East, 36.49 feet to a point of non -tangent curvature; thence northeasterly along the arc of a 32.50 foot radius curve (the radius point of which bears North 41°24'20" East) through a central angle of 90°00'00", 51.05 feet (chord bears North 86°24'20" East, 45.96 feet); thence North 41'24'20" East, 210.45 feet; thence South 48°35'40" East, 158.67 feet; thence South 41°24'20" West, 293.47 feet to the Point of B eginning. Contains 12.742 acres, more or less. Exhibit C A TRACT OF LAND LOCATED IN THE NORTHEAST 1/4 OF SECTION 4, TOWNSHIP 15 SOUTH, RANGE 10 EAST, WILLAMETTE MERIDIAN, DESCHUTES COUNTY, OREGON CURVE TABLE CURVE RADIUS DELTA LENGTH CHORD C1 1856.28' 31'01'18" 1005.05' N74'35'381 992.82' C2 32.50' 90'00'00" 51.05' N8624'20"E 45.96' / NO0'06'17'E 100.6.1' S89'53'431 30.00' N00'06'17"E 488.34' CENTER 1/4 CORNER SECTION 4 1/20/2022 REGISTERED PROFESSIONAL LAND SURVEYOR // POINT OF BEGINNING SW COR EXHIBIT B OF DOC. NO. 2017-11569 ro413 N 1'34'40"E 33,98' — moo• ;z�h oc, .(. EXHIBIT 'B' O ��ry(1�,y,�0� p`b 200C.11569 S OREGON JANUARY 17. 1995 GARY E. PAUL 2698 RENEWAL 12/31/2022 Uxt;: 9083 20220120 1R'J 11801 PREPARED FOR BENNY BENSON 15820 BARCLAY DRIVE SISTERS, OR 97759 CD DOC. NO. 2015-40685 TRACT A yCR ANDINGpS 0 a DOC. NO. 2013-022060 RADIAL N4124'20'W SCALE: 1"m 250 FEET III NUM 250 0 50 125 256 FUTURE PLAT AREA MAP AKS ENGINEERING & FORESTRY, LLC 12965 SW HERMAN RD, STE 100 TUALATIN,, OR 97062 503.563.6151 WWW.AKS--ENG.COM EXHIBIT B AK CHK6: GEP AKS JOB: ArssasiwaS 9083 Exhibit B EXHIBIT B Licensed Common Area Legal Description and Depiction A tract of land situated in the northeast one -quarter of Section 4, Township 15 South, Range 10 East, Willamette Meridian, Deschutes County, Oregon, being a portion of the land described in Exhibit B of the deed to Sisters Airport Property, LLC, recorded March 27, 2017, as Document No. 2017-11569, Deschutes County Deed Records, and being described as follows: Commencing at the southwest corner of Exhibit B of said Document No. 2017-11569, said point being the intersection of the easterly right-of-way line (30.00 feet from centerline) of Camp Polk Road with the northerly right-of-way line (30.00 feet from centerline) of Barclay Drive, and bearing North 00°06'17" East, 488.34 feet and South 89°53'43" East, 30.00 feet from a 2-inch brass cap marking the center one -quarter of said Section 4; thence South 89'53'43" East along said northerly right-of-way line, 54.95 feet to a point of curve left of a 1856.28 foot radius curve; thence along the arc of said curve left through a central angle of 13°43'34", 444.71 feet (chord bears North 83°14'30" East, 443.64 feet) to the P oint of Beginning; thence leaving said northerly right-of-way line North 21°12'08" West, 159.49 feet; thence North 22°57'39" West, 107.82 feet; thence North 48 °03'05" West, 164.79 feet to the northwesterly line of said Document No. 2017 - 11569 tract; thence North 41°24'20" East along said northwesterly line, 52.00 feet; thence leaving said northwesterly line South 48° 35'40" East, 37.77 feet; thenc e North 41°24'20" East, 36.49 feet; thence South 48°35'40" East, 56.33 feet; thence South 41°24'20" West, 36.49 feet; thence South 44°23'42" East, 191.68 feet; thence South 36°05'39" West, 26.85 feet; thence South 64°50'11" West, 22.68 feet; thence South 21° 12'08" East, 167.50 feet to the northerly right-of- way line of said Barclay Drive and a point of non -tangent curvature; thence southwesterly along said northerly right-of-way line on the arc of a 1856.28 foot radius curve right (the radius point of which bears North 14°55'39" West) through a central angle of 1°18'22", 42.31 feet (chord bears South 75°43'32" West, 42.31 feet) to the Point of Beginning. Contains 25,503 square feet, more or less. Exhibit C EXHIBIT B A TRACT OF LAND LOCATED IN THE NORTHEAST 1/4 OF SECTION 4, TOWNSHIP 15 SOUTH, RANGE 10 EAST, WILLAMETTE MERIDIAN, DESCHUTES COUNTY, OREGON CAMP POLK ROAD N4174'20"E 5200' DOC. NO. 2011-033943 EXHIBIT '8' DOC. NO. 2017-11569 POINT OF COMMENCEMENT POINT OF BEGINNING SW COR E)RIBIT B OF DOC. NO. 2017-11569 S4835'40'E 37.77' N4124'20'E 36.49' S48'3540'E 56.33' GROUND LEASE COMMON AREA AREA=25,503 SF± S4124'201136.49' VrA rin k S89'53 43 E 54.95 ~``;• N00'06'17'E 488.34' CENTER 1/4 CORNER SECTION 4 2/4/2022 REGISTERED PROFESSIONAL LAND SURVEYOR EQ OREGON JANUARY 17 1995 GARY E. PAUL 2698 RENEWAL 12/31/2022 01Vr,: 9053 «0220204 E)H Egi2 PREPARED FOR BENNY BENSON 15820 BARCI.AY DRIVE SISTERS, OR 97759 R=1856.28' 4=1343'34' L=444.71' CH=N8314'301 443.64' DXNIBfT DOC. NO. 2017-11569 S3605'39'W 26.85' S6450'11'W 22.68' SCALE, 1"=100 FEET ■- 100 0 20 50 RP=N14'55'39'W R=1856.28' LF1'18'21' L=42.31' CH=S7543'32'W 4231' 100 GROUND LEASE COMMON AREA MAP AKS ENGINEERING & FORESTRY, LLC 12965 SW HERMAN RD, STE 100 TUALATIN, OR 97062 503.563.6151 WWW.AKS-ENG.COM EXHIBIT B AinDK CHKD: VGJECpB AKSSJOB: 9083 Exhibit B EXHIBIT C SCHEDULE OF PERMI11ED ENCUMBRANCES 1. Rights or claims of parties other than Landlord in actual poss ession or with rights of nonexclusive use of any or all of the Expansion Area and Common Area described on Exhibit A-1 and Exhibit B. 2. Conditions, restrictions, and easements of record; unrecorded easements, discrepancies or conflicts in boundary lin es, shortages in area, and encroachments which an accurate and complete survey would disclose, or in the alternativ e, all of the foregoing whi ch are disclosed on any surveys of the Land. Exhibit C SISTERS AIRPORT PROPERTY LLC 15820 BARCLAY DRIVE SISTERS, OR 97759 541-719-1111 May 19, 2022 Purpose of Letter The purpose of this letter is to formally appoint an Entity Administrator for the above -named Entity and to attest to the accuracy of the information contained in the entity registration. Designation of Entity Administrator I, Benjamin Benson, CEO and Manager, the below signed individual, hereby confirm that the appointed Entity Administrator is an authorized officer, agent, or representative of the Entity. This letter authorizes the appointed Entity Administrator to manage the Entity's registration record, its associated users, and their roles to the Entity, in the System for Award Management (SAM). Entity Covered by this Letter Unique Entity ID: CD6LNHSYL5F8 Legal Business Name: SISTERS AIRPORT PROPERTY LLC Physical Address: 15820 BARCLAY DRIVE, SISTERS, OR 97759 Entity Administrator Contact Information Full Name (First and Last): Candace Danbo Phone Number: 541-719-1111 Email Address: cdanbo@esisolutions.com *The Entity Administrator must have an individual user account in SAM associated with the email address listed. Account Administration Preference (ONLY CHOOSE ONE) You must choose ONE of the two following statements by checking the applicable box. Remember, there is no cost to register in SAM -- it is free. However, if you choose to have a third -party agent administer your SAM registration, with or without an associated fee, you must check the Third -Party Agent Designation box below. ®Self -Administration Confirmation For the purpose of registering with the United States Government through the online System for Award Management (SAM), I do not authorize any third party to act on behalf of the Entity listed above. I have checked the Self -Administration Confirmation box to indicate that the designated Entity Administrator is not a third -party agent. The entity administrator is directly affiliated with the entity being registered. DThird-Party Agent Designation For the purpose of registering with the United States Government through the online System for Award Management (SAM), I, the below signed, do hereby authorize the following person who is not directly affiliated with the Entity listed above, to act on behalf of the Entity: time rt Third -Pa (Designated Third -Party Agent). This authorization permits the Designated Third -Party Agent to conduct all normal, common business functions within SAM while binding the signatory to all actions conducted and representations made as a result of authorization granted herein.I have checked the Third -Party Agent Designation box and completed the above information to indicate that the designated Entity Administrator is a third -party agent. Attestation I, the below -signed, attest to the following: • All information contained in this letter is complete and accurate. • The designated Entity Administrator listed above has an individual SAM User Account created with the email address provided in this letter. • The banking information provided for Electronic Funds Transfer on the Financial Information Page in the SAM.gov registration for the Entity above is correct and accurate. Respectfully, Benjamin Benson CEO and Manager of Sisters Airport Property, LLC bbenson@esisolutions.com Sisters Airport Property LLC 15820 Barclay Drive, Sisters, OR 97759 TO BE COMPLETED BY NOTARY (in accordance with State notary requirements) State of CJVe0Y1 County of v_eS C.h 22 Yo( This instrument was acknowledged before me this day of M a (month), y��t LIB (year), by 'e n Ot WI i n n Son; CC ° a r1I 1 (na�e of officer. or agent, title or officer or agent) of S YS qoYk Vro ¢e Yi, LLCM (name of entity). `V. Personally Known ✓ Produced Identification Type of ID and Number on ID Oveyoh gyi Ve(S Li (An S e — (PSa (Seal) OFFICIAL STAMP KATELYN ANN BERRY NOTARY PUBLIC • OREGON -COMMISSION NO, 1020148 MY COMMISSION EXPIRES JANUARY 12, 2026 Signature r6f Notary I/"1Gl�Gl�(1n 5t(iv\ Name of Notary J (Typed, Stamped or Printed) Notary Public, State of Ore_3011 THIRD PARTY AUTHORIZATION VERBAL RELEASE OF ACCOUNT DOCUMENTS AND INFORMATION CLIENT INFORMATION Accounttmbr6l) 31474035 31818784 .Accpunk Tie/Client Name(s) Benjamin bienson Benjamin Benson IRA Juliene M Benson IRA THIRD PARTY INFORMATION uName and Address andace�anDo 15820 Barclay Dr, Sisters, OR 97759 Rep ID Phone Number ❑ Home ® Business ❑ Cell (541) 549-8766 Fax Email cdanbo@energyneeringsolutions.com Check one or more boxes to authorize RBC WM to provide documents and/or verbal information to the above -named third party. ® AUTHORIZATION TO RELEASE ACCOUNT DOCUMENT(S) UPON MY VERBAL REQUEST In connection with the accounts identified above, I authorize RBC Wealth Management ("RBC WM") to accept verbal instructions from me to send trade confirmations, account statements, tax documents and/or other documents which I specifically identify to the above third party via U.S. Mail, fax or secure email. ® AUTHORIZATION FOR REGULAR RELEASE AND/OR DELIVERY OF DUPLICATE ACCOUNT DOCUMENTS In connection with the accounts identified above, I authorize RBC WM to send the below document(s) to the above third party at the frequency indicated below. By checking the "Duplicate Set -Up" election, I authorize RBC WM to deliver duplicate copies of the selected documents, as the are generated, to the above third party. v Document Type Duplicate Set -Up Daily Monthly Quarterly Annually Other Trade Confirmations ■ ■ Account Statements ■ ■ ■ ■ ►� Tax Documents ■ El ■ Other (Specify): 0 ■ ■ ■ M ® AUTHORIZATION TO VERBALLY DISCLOSE ACCOUNT INFORMATION I understand that RBC WM does not share information about me or my RBC WM account(s) with any person or entity without my express written consent except where permitted by law. Nevertheless, as a client of RBC WM, I understand that in order to provide the highest level of service to me and to ensure my investment interests are being served at all times, it may become beneficial for RBC WM to verbally share information about my account(s) with certain individuals I designate. Based on the aforementioned, I hereby authorize RBC WM to verbally provide information regarding any of my RBC WM accounts listed above to the above third party. 1 understand that the third party to whom such information is given is not subject to RBC WM's privacy policy and that, once such information is released to such third party, RBC WM does not have the obligation or the ability to restrict further releases of such information by such party. I hereby release and discharge RBC WM from all claims, damages, losses, costs and expenses that may arise from, or relate to, the release of the information to the third party. CLIENT AUTHORIZATION I understand that this authorization does not constitute a trading authorization or power of attorney and does not authorize third parties to make any investment decisions on my behalf regarding my RBC WM account(s). Additionally, this authorization does not obligate RBC WM to initiate the sharing of account information or documentation with any third party. This authorization will remain in effect until such time as I provide written notice of its revocation to RBC WM. If I am signing this document in different capacities (for example, signing for both an individual account and as a trustee of a trust account), I represent and agree that my single signature below is made in all of my capacities necessary to bind each account. All account owners must sign this form. Only one authorized signature is required for trust and business accounts. tiLe/7't0 "Tr/ . e_y'vQrn S • 7.3 - Z Z Client Name (please print) CIF4ifSignaturel Dates Juliene M Benson Benjamin Benson ClientNami(please print) Client Signature Client Name (please print) RBC QD Wealth Management eP.5 23/2'Z D to Client Signature Date FOR OFFICE USE ONLY BSM/OA/COA Initials: Date: A division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. ©2018 RBC Capital Markets, LLC. All rights reserved. U3PA (03/18) THIRD PARTY AUTHORIZATION, continued THIS PAGE IS FOR INTERNAL USE ONLY CLIENT INFORMATION Account �31474035 31818784 �ccount.T' e/Client Name(s) enlamin'uenson Benjamin Benson IRA Juliene M Benson IRA THIRD PARTY INFORMATION '&ardwedetsidistm 15820 Barclay Dr, Sisters, OR 97759 Phone Number ❑ Home ® Business 111 Cell (541) 549-8766 Fax Email cdanbo@energyneeringsolutions.com INTERNAL USE ONLY: FINANCIAL ADVISOR/CLIENT ASSOCIATE ATTESTATION Instructions Received From Date and Time Provide Documents to (Name and Address* of Third Party) Phone* Fax* Email* *FA/CA: If the above address, phone number, fax number and/or email is different from the information on Page 1, initial below to attest that you have confirmed this information change with the client. If there are any documents set up for duplicate mailing, update the third party's information in the system. I have confirmed with the client that the third party's contact information has changed and the above information is accurate. Documents Provided I attest that I have received the above instructions directly from the client or an authorized party on the account(s) at the time and date specified above. I confirm that the documents being provided to the third party are acceptable under the firm's LOA policy and the contact information provided matches the information initially provided by the client or has been confirmed with the client. Financial Advisor/Client Associate Signature Date Print Name Wealth Management A division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. ©2018 RBC Capital Markets, LLC. All rights reserved. U3PA (03/18) RESOLUTION OF MEMBERS of SISTERS AIRPORT PROPERTY LLC, an Oregon limited liability company, sole member o f SAP HANGAR CONDOMINIUM LLC, an Oregon limited liability company The undersigned, being all the members of SISTERS AIRPORT PROPERTY LLC, an Oregon limited liability company, and sole member of SAP HANGAR CONDOMINIUM LLC, an Oregon limited liability company (the "Company"), hereby adopt the following resolution effective as of `2z / Z.,3 , 2022: RESOLVED, that Benjamin Benson, .as Manager of the Company is hereby authorized on behalf of the Company to prepare, file and execute all documents needed to submit SAP Hangars Condominium to the Oregon Condominium Act, together with any filing or materials required by the Oregon Real Estate Agency in connection with the creation or marketing of units in such condominium, and that such individual is authorized to execute plats, Sales Agreements, Deeds, and other documents or instruments in connection with the sale and marketing of units in such condominium in the ordinary course of busin ess of the Company. SISTERS AIRPORT PROPERTY LLC, an Oregon limited liability company, sole member By: Benjamin Benson, member By: CAA B-nn j'uiiene Benson, member (also known as Julie Benson) Form 3 REAL ESTATE AGENCY - STATE OF OREGON NON-RESIDENTIAL CONDOMINIUM FILING FORM (Pursuant to ORS 100.660) Please type or print clearly and submit this form to the Oregon Real Estate Agency. Be certain all questions are answered and all documents and other information are attached. If a question is not applicable, answer "not applicable." Party responsible for the submission and completion of this filing: Name: Michelle D. Da Rosa, Michelle D. DaRosa LLC Address: 205 SE Spokane Street, Suite 300, Portland, OR 97202 Phone: 503-220-2891 Documents to be mailed to: Michelle D. Da Rosa, 205 SE Spokane Street, Suite 300, Portland, OR 97202 Phone: 503-220-2891 I. GENERAL INFORMATION Name of Condominium: SAP Hangars Condominium CondominiumAddress: 15820 Barclay Drive, Sisters, Oregon, 97759 County: Deschutes If not in city, give the direction and distance in miles from nearest city or town: No. of Stages: 1 Total No. of Units: 100 Name of Declarant(s): SAP Hangar Condominium LLC Street Address: 15820 Barclay Dr., Sisters, OR 9775.9. _ .. .__ Phone: (541) 719 0602 If a partnership, limited liability company or joint venture, state names and addresses of the members. (Attach list if necessary) Sisters Airport Property LLC, 15820 Barclay Dr., Sisters, OR 97759 Benjamin Benson, 15820 Barclay Dr., Sisters, OR 97759 Julie Benson, 15820 Barclay Dr., Sisters, OR 97759 PAGE 1-OF$ NON-RESIDENTIAL/SECURITY Revised March 2020 CONDOMINIUM FILING FORM Note: All assumed business names must be filed with the Corporation Division in accordance with ORS 648.010. If a corporation, state names and addresses of officers: President: Vice President: Secretary: list name kd4ad`clresses of+p�ersones who�wiill:fb;e.:actively:engagpsd i�n s�e'lling unitskin the co m nA N.am,e ^r; ,� ,. .t IBusiinessAwc]dress4 IPohalive ' alfesta66ii 'ce 030,es ©r, n Name of attorney or agent for Declarant: Michelle D. Da Rosa, Michelle D. Da Rosa LLC Address: 205 SE Spokane Street, Suite 300; Portland, OR 97202 Phone: 503-220-2891 EmailAddress: mdarosa@landandcondolaw.com Please check the applicable box. The buildings/structures subject to this filing have [ ] have not [X] previously been used (occupied) for residential purposes. II. CONDITION OF TITLE Owner of record (Fee owner): Sisters Airport Property LLC Address: 15820 Barclay Dr., Sisters, OR 97759 Phone: (541) 719 0602 1 [X] have [ ] have not provided a copy of all restrictive covenants, reservations or other documents that are or may create an encumbrance on or limit the use of the property including all those exceptions referred to on the preliminary title report submitted with this filing. If you have not provided a copy of all documents referred to, when will they be provided? PAGE 2 OF 3 NON-RESIDENTIAL/SECURITY Revised March 2020 CONDOMINIUM FILING FORM If the Declarant is not the fee title holder or the lessee pursuant to the terms of a lease for a leasehold Condominium, describe what arrangements have been made to assure Declarant's ability to obtain title to the land or a leasehold interest therein prior to the recording of the Declaration. Copy of draft ground lease submitted; the ground lease has not yet been recorded. Is there any present litigation concerning the Condominium? [ ] Yes [X] No. If "Yes", explain. The above information is true and correct as I verily believe. Date: /n-&-, 2 3, 20 Z 2— Declarant's signature D a. Declarant's signature PAGE 3 OF 3 NON-RESIDENTIAL/SECURITY Revised March 2020 CONDOMINIUM FILING FORM Z.,..ob tcY\ \Z ES 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: 'Bend ** Is this topic an item on today's agenda? Yes (please see description of Citizen Input above) Name .fe. I Date: 7— Address Phone #s 5 7/ 3 5/ 4c) E-mail address do r ' rinL e ( ..- " CO THIS FORM IS TURNED IN TO RECORDING SECRETARY BEFORE MEETING BEGINS Are you submitting written documents as part of testimony? Yes If so, please give a copy to the Recording Secretary for the record Sharon Keith From: D T <dorinne.tye@gmail.com> Sent: Monday, July 18, 2022 5:14 PM To: citizeninput; council@bendoregon.gov; Tracy Williams Subject: Bend Airport N9936v [EXTERNAL EMAIL] I want to start by saying, if you're getting 'notified' every time I upload an image, do turn off notifications on folder or in Google photos. You can turn them off for just me or my folders & still get notified of others and still have access: This aircraft is consistently too low with all trackers I look at consistently reflecting highly incorrect data in both location abd altitude, which must beg questions of intent and manipulation. This report is only for one of hundreds of flights today that were this low and lower, thousands the past week. https://photos.app. goo. gl/Ndnu6sy6gBicXBGPA Even as I was filing out this form at 4:47, pilot was so preoccupied with flying incredibly dangerously low near me & tormenting me that as it went across road and cut through trees it didn't even notice a helicopter on other side of trees skating its blades repeatedly & got sideways to miss... scary. Like I keep saying, these flight schools are so enthralled with terrorizing residents, ecosystems & wildlife, tragedy is the only outcome and I don't understand the inaction. Other videos from last couple days; https://photos.app.goo. gl/e8C 1 pgr8mmCFuCceA Dorinne Tye 541/851-6201 BOARD OF COMMISSIONERS AGENDA REQUEST & STAFF REPORT MEETING DATE: Wednesday, July 20, 2022 SUBJECT: Oasis Village: Project update RECOMMENDED MOTION: None BACKGROUND AND POLICY IMPLICATIONS: Members of the Oasis Village project team will be presenting a project update. BUDGET IMPACTS: To date, County has committed $32,050 for planning and consulting services with Rogue Retreat and $367,500 for project development. ATTENDANCE: Bob Bohac and James Cook, Oasis Village; it is anticipated other Oasis Village project team members will also be present. 7/20/2022 OASIS VILLAGE: LOW BARRIER SHELTER CREATIVE4iiLAB Bend CreativeLa b.COn1 ASIS VILLAGE BUILDING A PATH TOWARDS HOLIE Accomplishments Funding o $367,5oo CountyARPAfunding (pending completion of MOU) ` $350,00o from State of Oregon (grant agreement submitted) • $25o,000 Central Oregon Health Council (grant received) Design • Initial site plans complete and presented to City of Redmond ° Rogue Retreat Consultation (County ARPA funds) o Weekly planning sessions • Medford site visit • Community Poverty Simulation • Oasis Village/Redmond Visioning Session Final report due July 2022 Construction • First shelter unit shell complete (regulations require interior to be finished on site) by Heart of Oregon Corps (HOC). Sponsored by Redmond Rotary. 07/20/2022 2 1 7/20/2022 '-"' " ASIS ILLAGE , il ' 1 ....„„pmus,...... • PRELIMINARY SITE PLAN-JUNE, 2022 ,:i:REDMOND, OR 97756 TAXLOT 103 MAP 1513 ..",:.' ti; ' ; , . q,,ROJECT StTE/ VICINITY MAP nas l ( IEE11 lC, : , / . , 11 1".VLANyiNNG \.r.6 & s uRvEn NA CONTACT HATES P.f COY 1180 SW LAKE ROAD SURE 2(Ii PEDMOND OP 97756 PH 541 923 7.4 I 1 " / , ' .,, '..-- IF I11 1'8 " gA `4 7,0 .7 ra 7.0 r ,....-. , ';',:Ir'' i 1?, i•II 'rr; ....--- - — , — NO SEE DEMI A, THIS H FOR 1.111114S 07/20/2022 2 7/20/2022 OASIS VILLAGE TIMELINE 2022 2023 July Aug Sept Oct Nov Dec Jan Feb March April May June July Aug Sept Oct First Prototype Exterior (Completed) I Heart of Oregon 15 Units .l I Redmond HS 3-6 Units 10-acre Master Plan Sept.1: Submit Site Plan Application I- City Approval Process I Oasis/County MOU --I & Lease Agreement ODOT Approval Process —1- Site Construction 1 Set Sleeping (Utiilties trenching, Units & Rock Hammering, Hookups Grading, etc) I -Community Building I Hire Program Manager I Negotiate Service Provider MOUs Hire/Train Support & Peer Support Staff I Hire/Contract for Development I Resident Selection & Fundraising 07 20/2022 Nov Dec w E C 0 R S T R E D E N s (15-30) 5 ASIS IL,I,AG.: 07/2012022 c ty & ODOT Approval T1, • Submit Site Plan Application — 9/1 • City Issues Decision—12/1/22 (go days) • Grading and Drainage Submittal, ODOT Permit Submittal—1/1/23 (3o days) • 15t City Engineering Review Comments — 3/1/23 (6o days) • Submit Revisions to City —3/8/23) 7 days - Submit Building Permits —3/8/23 • Grading and Drainage Approval — 5/1/23 (6o days) • ODOT Permit Obtained — 5/1/23 Likely sooner but would require some coordination with City • Begin Construction 5/1/23 6 3 7/20/2022 Tdine Summer 2022 o Heart of Oregon Corps begins construction of 15 additional shelter units ° County MOU and Land Lease complete Fail 2022 • Redmond High School students begin construction of one or two shelter units per semester • Spring 2023 • Begin site work (including site work, excavation, rock hammering, etc.) o Fall2023 • 10-20 shelter units complete and moved to site • Community building and facilities complete • Full utilities to site • 20 shelter units complete and occupied • November 2o23 o Welcome first residents 07/20/2022 7 ASIS VILLAGE_ 8811.0I110 A PATH TOWABOS HONE Completed shelter units at St. Vincent's Place. These are the model for the Oasis Village shelters. 07/20/2022 4 7/20/2022 5 BOARD OF COMMISSIONERS AGENDA REQUEST & STAFF REPORT MEETING DATE: July 20, 2022 SUBJECT: First reading of Ordinance No 2022-008. An ordinance amending Chapter 2.14 (County Internal Auditor) and Chapter 2.15 (County Audit Committee) as recommended by the County Audit Committee. RECOMMENDED MOTION: Move approval of ordinance No. 2022-008. First reading of ordinance No. 2022-008. {Second reading to be scheduled for BACKGROUND AND POLICY IMPLICATIONS: The changes being proposed came through the periodic review process of these code sections by the Deschutes County Audit Committee. .} The ordinance amends Chapter 2.14 (County Internal Auditor) to clarify and improve some of the language. The amendments help address the addition of staff to the function. Changes include using the reference "Office of County Internal Audit"; expanding upon the duties of the County Internal Auditor; separate and highlight the independence of the function; and provide greater Audit Committee input on non -audit work to be performed. The ordinance amends Chapter 2.15 (County Audit Committee) to provide similar language as modified in Chapter 2.14 regarding the use of the term "Office of County Internal Audit". The audit committee supports these changes and the changes have also been reviewed by the County Internal Auditor. BUDGET IMPACTS: None noted ATTENDANCE: David Givans, County Internal Auditor REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending Chapter 2.14, County Internal Auditor and Amending Chapter 2.15, Audit Committee of the Deschutes County Code. * * ORDINANCE NO. 2022-008 WHEREAS, the Board of County Commissioners by Deschutes County Code, Chapter 2.14 and Chapter 2.15 codified the County Internal Auditor and Audit Committee roles with the County and the Audit Committee code specifically calls for the periodic review of Chapter 2.14; and WHEREAS, the Audit Committee through a review of Chapters 2.14 and 2.15 developed and recommends the amendments attached in Exhibit A and Exhibit B to Chapter 2.14 and 2.15, respectively; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. AMENDMENT. DCC 2.14 is amended to read as described in Exhibit "A," attached hereto and by this reference incorporated herein, with new language underlined and language to be deleted in strikethrough. Section 2. AMENDMENT. DCC 2.15 is amended to read as described in Exhibit "B," attached hereto and by this reference incorporated herein, with new language underlined and language to be deleted in stfikethfeugh. / / / PAGE 1 OF 2 - ORDINANCE NO. 2022-008 Dated this of , 20 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON PATTI ADAIR, Chair ANTHONY DeBONE, Vice Chair ATTEST: Recording Secretary PHIL CHANG, Commissioner Date of 1st Reading: day of , 20 . Date of 2nd Reading: day of , 20 . Record of Adoption Vote Commissioner Yes No Abstained Excused Anthony DeBone Phil Chang Patti Adair Effective date: day of , 20 . ATTEST Recording Secretary PAGE 2 OF 2 - ORDINANCE NO. 2022-008 Exhibit A Chapter 2.14. COUNTY INTERNAL AUDITOR 2.14.001 Office of County Internal Audit. 2.14.010. Appointment of County Internal Auditor. 2.14.020. Qualifications of County Internal Auditor. 2.14.025 Independence 2.14.030 Authority / Scope of Audits. 2.14.040. Internal Audit Schedule. 2.14.050. Funding. 2.14.060. Access to Employees, Records and Property. 2.14.070. Audit Reporting and Records. 2.14.080. Contract Auditors, Consultants and Experts. 2.14.090. Quality Assurance Review. 2.14.100. Repealed. 2.14.001 Office of County Internal Audit. The Office of County Internal Audit is created and the person holding that office shall act as the head of internal audit for the County. The office consists of the County Internal Auditor and such subordinate employees as the Board of County Conunissioners may provide. The purpose of having the Office is to provide independent, objective assurance and consulting services designed to add value and improve Deschutes County's operations through improved performance and enhanced control environment thereby providing greater accountability to its residents. The County Internal Auditor is the Chief Audit Executive for the County and shall perform all day-to-day functions necessary for the administration and management of the Office of County Internal Audit. Such duties include but are not limited to: a) Develops and implements policies and procedures for the Office of County Internal Audit in compliance with the government auditing standards. b) Directing all internal audit activities for the County and is responsible for the most difficult assignments requiring a higher level of responsibility, applying advanced subject knowledge, and exercising significant independent judgement and oversight over staff. c) Advises the Board of County Commissioners, County Administrator, and County department/offices on the continuous improvement of County governance, risk management, and financial control processes. d) Selects, appoints, directs, supervises, disciplines, and dismisses all Office of County Internal Audit staff consistent with County policies and procedures and for the efficient and effective administration of the affairs of the office. This chapter establishes the general authority and responsibility of the Office of County Internal Audit. (Ord . 2022- ; Ord. 2018-007 §1, Ord 2022-008 §1) Chapter 2.14 1 (1/13) Exhibit A 2.14.010. Appointment or dismissal of County Internal Auditor. The County Internal Auditor shall be appointed by or dismissed by the County Administrator in consultation with a majority of the public members of the County Audit Committee and an affirming majority vote of the BOCC. (Ord . 2022- ; Ord. 2013-004 §1, 2013; Ord. 2005-014 §1, 2005, Ord 2022-008 §1) 2.14.020. Qualifications of County Internal Auditor. The County Internal Auditor shall possess adequate professional proficiency, demonstrated by relevant certification, such as CPA (Certified Public Accountant), CIA (Certified Internal Auditor), CGAP (Certified Government Auditing Professional) or a combination of education and experience as would be desired by the County. (Ord. 2005-014 §1, 2005) 2.14.025 Independence A. The County Internal Auditor has neither a management nor a policy role; and no operational authority nor responsibility. Rather, the Office of County Internal Audit provides independent and objective information about County programs and services. B. The County Internal Auditor governs the office by adherence to the government auditing standards issued by the Comptroller General of the United States. The office will work to be independent as defined by that framework and shall remain free of influence by any organizational elements. C. The County Internal Auditor reports functionally to the County Audit Committee and administratively to the County Administrator. (Ord 2022-008 §1) 2.14.030 Authority / Scope of Audits. 1. The Office of County Internal Audit shall establish internal auditing policies and procedures to assure that audit work is completed in accordance with those standards. Any audit work that is undertaken not in compliance with standards shall be disclosed in the Auditor's report. 2. The Office of County Internal Audit shall have authority to conduct financial, attestation, and performance audits of all departments, offices, boards, activities and agencies of the County in order to independently and objectively determine whether: a. activities and programs being implemented have been authorized by County Code or adopted policy, state law or applicable federal law or regulations; b. activities and programs are being conducted as prescribed by management/governing body to accomplish the objectives intended by County Code, state law or applicable federal law or regulations; c. activities or programs efficiently and effectively serve the purpose intended by County Code, state law or applicable federal law or regulations; d. activities and programs are being conducted and funds expended in compliance with applicable laws; e. revenues are being properly collected, deposited and accounted for; f. resources, including funds, property and personnel, are adequately safeguarded, controlled and used in an effective and efficient manner; g. financial and other reports are being provided that disclose fairly and fully all information that is required by law, that is necessary to ascertain the nature and scope of programs and activities and that is necessary to establish a proper basis for evaluating the programs and activities; h. there are adequate operating and administrative procedures and practices, systems or accounting internal control systems and internal management controls which have been established by management; and Chapter 2.14 2 (1/13) Exhibit A i. there are indications of fraud, abuse or illegal acts, which need further investigation. 3. The Office of County Internal Audit may also provide non -audit services (consulting) that are not covered by governmental auditing standards. Non -audit services differ from audits in that the Office of County Internal Audit may a. Perform tasks requested by management that directly support the entity's operations; b. Provide information or data to a requesting party without providing verification, analysis or evaluation. These non -audit services should be approved by the County Administrator, after consultation with the Audit Committee. The Office of County Internal Audit should continue to work independently (in fact and appearance) when performing non -audit services. The County Internal Auditor will decide and advise the County Administrator if the non -audit work may jeopardize independence and whether the work should be performed. (Ord. 2005-014 §1, 2005, Ord 2022-008 §1) 2.14.040. Internal Audit Schedule. At the beginning of each calendar (or fiscal) year, the Office of County Internal Audit shall submit a one to five-year audit work schedule to the Audit Committee for approval. This audit work schedule should incorporate information from multiple sources including the Office of County Internal Audit's assessment of significant risks to the organization and input from Management, Audit Committee, and the Board of County Commissioners. The schedule shall include the proposed plan for auditing departments, offices, boards, activities, subcontractors and agencies for the period. The schedule may be amended. Additionally, the County Internal Auditor (for cause) may spontaneously initiate and conduct any other audit deemed necessary. Any significant changes (an expectation of scope of work changing by more or less than 150 hours) to the workplan for audit or non -audit projects should be approved in advance by the County Administrator and the Audit Committee. In the selection of audit areas and audit objectives, the determination of audit scope and the timing of audit work, the Office of County Internal Audit should consult with external auditors so that the desirable audit coverage is provided and audit effort is properly coordinated. (Ord. 2011-004 §1, 2011; Ord. 2005-014 §1, 2005, Ord 2022-008 §1) 2.14.050. Funding. The County shall provide sufficient funds to enable the Office of County Internal Audit to carry out the responsibilities specified herein subject to annual appropriation by the BOCC. (Ord. 2013-004 §1, 2013; Ord. 2005-014 §1, 2005, Ord 2022-008 §1) 2.14.060. Access to Employees, Records and Property. 1. All officers and employees of Deschutes County shall furnish the Office of County Internal Audit with unrestricted access to employees, information and records (including electronic/computerized data) Chapter 2.14 3 (1/13) Exhibit A within their custody regarding powers, duties, activities, organization, property, financial transactions, contracts and methods of business required to conduct an audit or otherwise perform audit duties. In addition, they shall provide access for the Office of County Internal Audit to inspect all property, equipment and facilities within their custody. A discussion of appropriate access should occur with County Counsel if access to documents is restricted by applicable law. 2. Further, all contracts with outside contractors and subcontractors shall provide the Office of County Internal Audit access to the contractually related financial and performance -related records; property, equipment and services purchased in whole, or in part, with governmental funds 3. If such officers, employees or contractors fail to produce the aforementioned access and/or information, the Office of County Internal Audit with the aide of County Legal Counsel may initiate a search (or obtain a subpoena) to obtain exhibit copies (physical or electronic) from computerized systems, book, paper or record of any such official or employee, or outside contractor or subcontractor, in accordance with state law or the applicable contract. 4. Subject to public records laws, the Office of County Internal Audit shall not publicly disclose any information received during an audit that is considered confidential by any local, state or federal law or regulation. The Office of County Internal Audit shall maintain the confidential status of information and records furnished by County officers and employees to the extent allowable under public records laws. (Ord. 2013-004 §1, 2013; Ord. 2005-014 §1, 2005, Ord 2022-008 §1) 2.14.070. Audit Reporting and Records. 1. Each audit will result in a report containing relevant background information and findings and recommendations, and shall communicate results to the Board of County Commissioners, Audit Committee, and appropriate management. Subject to applicable public records laws, the report shall also be available for public examination. If certain pertinent information is prohibited from general disclosure, the audit report should state the nature of the information omitted and the requirement that makes the omission necessary. 2. The Office of County Internal Audit should follow state archive guidelines as appropriate and as identified under OAR 166-150-0005(4) (currently - a retention schedule of 10 years). 3. The Office of County Internal Audit should periodically report to the Audit Committee (and Board of County Commissioners) on the work performed and any significant findings, which have not been fully addressed by management. 4. The Office of County Internal Audit shall follow-up on audit recommendations, as practical, to determine if management is implementing corrective action as identified in their response to the audit report findings and recommendations. The Office of County Internal Audit may request periodic status reports from auditees regarding actions taken to address reported deficiencies and audit recommendations. (Ord. 2011-004 §1, 2011; Ord. 2005-014 §1, 2005, Ord 2022-008 §1) 2.14.80.Contract auditors, consultants and Experts. 1. Within budget limitations and approval by the County Administrator, the Office of County Internal Audit may obtain the services of Certified Public Accountants, qualified management consultants, or other professional experts necessary to perform auditor duties. An audit that is performed by contract must be conducted by persons who are independent of the governmental unit and its officers. The Office Chapter 2.14 4 (1/13) Exhibit A of County Internal Audit will coordinate and monitor auditing performed by public accounting, professional experts, or other organizations employed under contract by Deschutes County. 2. The Office of County Internal Audit may participate with the Audit Committee in the selection of qualified finalists for the provider of Deschutes County's annual financial audit. The Audit Committee shall select a provider from the finalists. This selection shall be presented to the Board of County Commissioners for review and approval. The process will follow Deschutes County's contracting processes. (Ord. 2011-004 §1, 2011; Ord. 2005-014 §1, 2005, Ord 2022-008 §1) 2.14.090. Quality Assurance Reviews. 1. The audit activities of the Office of County Internal Audit shall be subject to quality review in accordance with applicable government auditing standards by a professional, non -partisan objective group (such as the Association of Local Government Auditors (ALGA)). A copy of the written report of this independent review shall be furnished to the Audit Committee and the Board of County Commissioners. This report shall be available to the public. 2. The quality control review shall determine compliance with government auditing standards and the quality of the audit effort and reporting, including: a. general standards such as competence, professional judgment, and quality assurance; b. fieldwork standards such as planning, supervision, and evidence; and c. reporting standards such as report content, timeliness and distribution. 3. The County shall reimburse the costs of the quality control review team from funds budgeted in the Office of County Internal Audit's budget. Within available time constraints, members of the Office of County Internal Audit may reciprocate with other organizations by participation in quality control teams. (Ord. 2011-004 §1, 2011; Ord. 2005-014 §1, 2005, Ord 2022-008 §1) 2.14.100. Repealed (Ord. 2013-004 §1, 2013; Ord. 2011-004 §1, 2011; Ord. 2005-014 §1, 2005; Ord 2018-007) Chapter 2.14 5 (1/13) Exhibit B Chapter 2.15. COUNTY AUDIT COMMITTEE 2.15.001 Purpose. 2.15.010 Authority. 2.15.020. Composition. 2.15.030 Meetings. 2.15.040. Responsibilities. 2.15.001 Purpose. The Board of County Commissioners have formed the Audit Committee to advise the Board on fulfilling its responsibilities for financial reporting, internal controls, and compliance with laws, regulations, and ethics within the County. The Audit Committee provides oversight to auditing (external and internal) for the County. The audit committee receives and reviews County information on: • financial condition; • the accuracy of financial record keeping; • compliance with applicable laws, policies, guidelines, and procedures; and • efficiency and effectiveness of operations. The Audit Committee strengthens the independence of auditing by serving as a transparent third -party review body. (Ord. 2018-007 §2) 2.15.010. Authority. A. The Board of County Commissioners ("Board") hereby establishes the Audit Committee as an advisory committee. The committee shall advise the Board and County Administrator on significant audit matters including, but not limited to: 1. The selection, compensation, and removal of external auditors hired to audit the financial statements for the County and its related entities; 2. Consultation with the County Administrator or Board regarding the appointment or dismissal of the County Internal Auditor should include a consultation with a majority of the public members of the audit committee; 3. Increases and decreases to the requested budget for the internal audit program; and 4. The work plan for internal audits performed under DCC 2.14.040. (Ord. 2013-004 §1, 2013; Ord. 2008-002 §1, 2008) 2.15.020. Composition. A. The audit committee shall be comprised of not less than seven or more than nine members appointed by the Board. B. Each member shall be appointed to serve a term of two years. Upon initial formation of the committee, the Board may appoint any member to a shorter term. A member may be appointed to more than one term. The Board may remove a member of the committee at any time. In the event of a vacancy on the committee the Board shall, as soon as practicable, appoint a person to serve the unexpired portion of the former member's term. C. The committee shall consist of one (1) member county commissioner, two (2) county department head members, and four (4) to six (6) public members. The County Administrator shall be an ex-officio nonvoting member. D. A public member shall be a registered voter within Deschutes County. The chair of the committee shall be a public member and shall be selected by a majority of the public members. The chair shall serve a one-year term and may be selected for additional terms. If the public members cannot decide upon a chair, the larger committee shall decide. The chair shall preside over meetings, as well as provide input on topics for the agenda. (Ord. 2009-011 §1, 2009; Ord. 2008-002 §1, 2008) Chapter 2.15 1 Exhibit B 2.15.030 Meetings A. The audit committee shall meet as the committee deems necessary. A quorum shall constitute a majority of the members appointed. Vacant positions shall not be considered in determining whether a quorum exists. Minutes shall be prepared in accordance with the Oregon Public Meeting Law. The committee may require certain County management attend meetings to address reports being discussed. Auditee departments will be invited to meetings where their internal audit report is discussed. B. A department head audit committee member shall not vote on an issue relating to an audit directly pertaining to his or her department. If there is any question as to whether audit committee members should recuse themselves from a vote, the committee should vote to determine whether the member should recuse himself or herself. C. The County Internal Auditor shall facilitate and coordinate such meetings, as well as provide ancillary support to the committee, as time permits. (Ord. 2009-011 §1, 2009; Ord. 2008-002 §1, 2008) 2.15.040. Responsibilities. Responsibilities of the Audit Committee include: A. Overseeing the independent audit of the County's financial statements, including: 1. Overseeing the selection, renewal or removal of the independent external auditor by making a recommendation to the Board for final approval; 2. Meeting with the external auditors during planning of the audit, presentation of the audited financial statements, and discussion of the letter to management on recommendations; and 3. Overseeing the resolution of audit findings in, areas such as internal control, legal and regulatory compliance, and ethics. B. The committee shall work to assure coordination between the internal and external auditors, management, the County Administrator and Board. C. The audit committee shall ensure the internal audit program performs its function. The committee shall: 1. Review the internal audit ordinance (DCC 2.14) at least every other year; 2. Review proposed internal audit work plans and make recommendations concerning internal audit projects; 3. Review the budget and staffing levels of the Office of Internal Audit (DCC 2.14.050); 4. Review internal audit reports and other communications developed for the County; 5. Review and provide input on Office of Internal Audit goals; and 6. Review any quality assurance reviews created pursuant to DCC 2.14.090. 7. Discuss and provide input on the County Internal Auditor's performance review each year. D. The committee shall make appropriate recommendations concerning the Office of Internal Audit based upon the reviews that it conducts pursuant to subsection C of this section. E. The committee shall make an annual report to the Board summarizing the committee's activities and recommendations. The report may be delivered at an audit committee meeting attended by the Board or may be scheduled for a regularly scheduled meeting of the Board. F. The committee shall perform other activities related to this chapter as requested by the Board. (Ord. 2013-004 §1, 2013; Ord. 2011-004 §1, 2011; Ord. 2008-002 §1, 2008, Ord. 2022-008 §2) Chapter 2.15 2 MEETING DATE: 07/20/2022 SUBJECT: Consideration of American Rescue Plan Act Funding Proposals RECOMMENDED MOTION: The Board of County Commissioners has discretionary authority over American Rescue Plan Act Funds and can make a motion funding any eligible proposal. BACKGROUND AND POLICY IMPLICATIONS: In FY21, Deschutes County was awarded -$38.4 million in American Rescue Plan Act (ARPA) funds through the Federal Government. To date, the County has obligated over -$37.6 million of ARPA funds in support of coronavirus relief, childcare, affordable housing, small business financial support, expanded services to those experiencing houselessness and improvements in water infrastructure. Planned ARPA conversations include the Sisters Park and Recreation District $25,000 proposal to increase childcare capacity, and discussion of potential general re -allocation of future workforce childcare reserves. ARPA discussion will conclude with a review of new, unfunded, eligible ARPA proposals, and an update on additional proposals we are reviewing for ARPA eligibility. BUDGET IMPACTS: The ARPA fund has approximately $747,000 in unappropriated funding that can be used for eligible ARPA proposals, as well as $1.7 million in contingency for health focused responses to Covid-19 and its prevention. 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Water Infrastructure 0) 1245 SE 3rd Street, Suite C7 Bend, OR 97702 www.thegivingplate.org www.facebook.com/thegivingplate II -- PLATE COMMUNITY FOOL) RELIEF OUT Dear Deschutes County Commissioners, July 20, 2022 I hope this letter finds you all doing well. First, thank you for being the first in our community to come along- side The Giving Plate's capital campaign with $500,000 in ARPA funding last year. That was an incredible launch for our capital campaign. Thank you for embracing this project and what it will mean for our commu- nity. I know you are sitting amongst many deserving requests for funding. I by no means want to take from others, but I wanted to share an update on our project in case there is extra funding to be dispersed. In the initial packet I sent you last year, I shared that the rehab on the building we purchased would cost be- tween $500,000 and $700,000. At that point, we were at the beginning stages of the construction and the budgeting process with the contractor we had at that time. When we finalized our capital campaign, we end- ed up basing our campaign on $700,000 in building rehab costs and added $250,000 to it for incidentals. Ear- ly this year, the full project scope was determined and developed, which resulted in the prices around the rehab of the project increasing. Because of the age and location of the building, the City of Bend is requiring multiple upgrades to the building and street frontage that weren't initially anticipated. With inflation increas- es and an underbid initial budget, we are looking at a substantial increase in funding to get this building to the point where we can bring our community inside. Our new contractor, Fortress Construction, is finalizing our new budget for the building rehab, and they are working with our architect/design firm, Open Concept, to get an accurate cost. They are a few weeks out from providing us with the updated budget, but we are looking at about $1.5M to get the building to code and build it out to house the future Community Store we will be opening, which is an increase of over $500,000 what we had initially budgeted. We are grateful to have positive support from the community, media, and local foundations around this pro- ject. For example, we recently received word that we were awarded a grant from a local foundation for $1M dispersed over two years to reduce our loan on the building. This funding is exciting, and it gets us closer to being a debt -free organization so that we can be in a secure place for our community when they need us the most. We are currently about 75% of the way to our initial campaign goal. The additional funding that is now needed to raise means we are looking at about 15% more to bring in on our campaign. In addition to rising costs around our campaign, the number of people we see coming to The Giving Plate this year is over 30% higher than we experienced in 2021, with over 90% of them identifying as housed. They are our hardworking neighbors in our community doing all they can to not slip into homelessness. The Giving Plate is committed to being a part of the solution to homelessness by helping people with $500-$700 a month in food costs so they can use that money to keep gas in their cars and continue working, pay their rents/mortgage, keep the power on, and more. The Bureau of Labor Statistics states that consumer prices were up 9.1% as of June 2022, the largest increase in 40 years. The rise in inflation is impacting our communi- ty, and we see the impacts firsthand in the increased number of individuals we are serving each week. On the next page, you will see our statistics comparing our averages from 2021 to 2022. The increase in peo- ple served is significant, yet, the amount of food we receive from the community is down by 5% compared to last year. Meaning we have to spread less food out over more people. We are committed to staying at the frontlines of hunger in our community to ensure that nobody has to go without Iife's essentials. With all that is happening right now in our economy, we are even more committed to this building remodel and the Com- munity Store opening in 2023. Our neighbors need what The Giving Plate is offering, and by infusing funding into this project, you are ensuring that more of our hardworking community members don't slip into home- lessness and become part of that statistic. With the $500,000 we have been awarded from ARPA funding pool so far, we would like to humbly ask to be considered for another $225,000 to be used exclusively for building rehab. The need for this space to operate out of is vital to our ability to be on the frontlines of food insecurity for our community. I will gladly share our updated budget from Fortress when we get it if you would like to see it. I just wanted to get this packet into your hands immediately to be on your radar in case additional funding becomes availa- ble that would be appropriate for this project. Thank you for your time and consideration. With sincere gratitude, Ranae Staley, Executive Director 541.771.1194 / ranae@thegivingplate.org arin Avera e MONTHLY #s from 2021 to 2022 6 5.7 million lbs. of food shored with the community since 2010 COMMUNITY'F E A E Founded in 2010, The Giving Plate is a grassroots food pantry with a simple mission of - "Feeding the hungry today with compassion and hospitality." Over the past 12 years, The Giving Plate has grown from an initial dream to serve 500 families experiencing food insecurity to the largest food pantry in Central Oregon with three hunger -relief programs (Food Box program, Kid's Korner, and Backpacks for Bend). Feeding the hungry is what we do, but it is only one small part of who we are and what we want to accomplish. By living our mission, we are intentional in our efforts to remove the stigma and shame commonly associated with visiting food pantries. We work hard to create an environment for our guests that is warm, welcoming, and rich with hope. AGO ELIF In August 2021, we closed on the purchase of our own 11,100 square foot space that will allow us to bring all of our food and programs under one roof. In 2023, we will be able to create something truly special for our neighbors in need. No longer will we offer our guests "food boxes." Instead, they will come to our new Community Store to do their "grocery shopping" for the food they want and need for their families. We will also offer a fun and unique Kid's Korner store for the children to visit and do their own shopping. This shopping style of serving our guests will normalize the food -relief service we are offering. Our hope and desire are to reduce the shame and stigma attached to accessing our services. It is one thing to give food to someone in need, but when you can figure out how to offer that food with dignity and compassion and truly show that you care, one quickly discovers that you are not just fighting hunger but feeding hope. 22,124 total people CI 9,508 total kids served in served in 2021 /14. 2021 11 5,022 weekend food bags provided through Backpacks 17 For Bend in 2021 R GUESTS iI/ "I have yet to have a bad L., experience with The Giving Plate. You're fast. friendly and I never leave feeling ashamed or embarrassed. Thanks to all for your help that is much appreciatedl" -J.H. 77 530.335 total number of meals provided in 2021 TING "It's not just food you are giving out; it is love and we need more of that in our world. Thank you for being here for my family." - Guest To learn more about our programs go to w 1245 S.E. 3rd Street, Suite C7, Bend, OR 97702 1541.797.6883 Follow up on Facebook 6 Instagram WHAT SETS US APART TGP serves families living all throughout Central Oregon. TGP is the only food bank in Oregon that has a youth -specific food pantry (Kid's Korner). Between our three hunger -relief programs, children 18 and under make up 60% of individuals served. TGP helps K-12 students in 33 Bend/La Pine schools with food for the weekend through Backpacks for Bend. This is the only program of its kind in the Bend/La Pine school district and ensures that no child has to experience a weekend of hunger. TGP provides a welcoming environment so that each guest that visits feels valued and doesn't encounter the clinical stigma that is connected to many food -bank experiences. FH 320 SW Century Drive Suite 405-125 FURNISH HOPE Bend, OR 97702 February 10, 2022 Dear Deschutes County Commissioners, Thank you for taking the time to review our request for ARPA funding. We would like to start by sharing a little bit of Furnish Hope's story and why we are here in Central Oregon. Furnish Hope was founded in 2019, with a simple mission of "Enhancing lives with furnishings and household essentials." We never would have realized that our vision to furnish homes at no cost for families in need would become something that would grow at such a fast rate. Initially, this idea was birthed when we met with Habitat for Humanity and learned that the majority of people purchasing homes through their program were moving into their homes with their bags of clothing and a pillow or two. Soon after, we learned about a single mom of two teens in the Habitat for Humanity program. This family had been living in a dilapidated single -wide trailer with black mold and countless other issues. They went through the Habitat program in order to get a home they could call their own. The home was getting close to completion, but this family realized they would likely be moving into an empty home as they had used all of their savings to get their home built - they had no money left to put into furnishing the home with essentials. We decided that we wanted to help. We went out and found pieces of furniture at discounted pricing and transformed them into something beautiful. Within six weeks, we had taken an empty house and created a home for this family to move into - at no cost to them. Later, we were made aware of other families in similar places of need, and soon, we had clarity on how Furnish Hope could serve an essential need in Central Oregon that no other agency was meeting. In 2019, Furnish Hope decided to help Habitat furnish 22 homes. By the end of the year, the word was out, and we took on 24 other referring agencies. In 2020, we exploded in growth and furnished hope for 191 homes - a 768% increase! Last year, we grew by another 95% and furnished 373 homes for local families transitioning into stable housing. Currently, we are serving families in eleven communities in Central Oregon and are partnered with 54 referring agencies. At this time, we have 52 families in the system waiting to get furniture. On average, we are experiencing a referral rate of over 40 families a month. We anticipate we will help a total of 500 families in Central Oregon in this year alone. We are passionate about meeting the needs of each person transitioning into stable housing - they worked hard to get there, and we want to do all we can to make their house their home. When we bring furniture to homes throughout Central Oregon, we are truly bringing HOPE. In order to continue to keep up with the exponential growth we are experiencing, we need increased support. We would like to invite you to partner with us in this mission of furnishing hope for Central Oregonians. Our ability to bring love, hope, and basic household furnishings to our neighbors in need is dependent on 5 Critical Components: volunteers, donations, warehouse space, transportation, and funding. We FH 320 SW Century Drive Suite 405-125 FURNI SH HOPE Bend, OR 97702 have been blessed with an abundance of volunteers and donations. Our biggest need right now is to build capacity within the infrastructure of space, transportation, and staffing. You will find a "2022 Build Capacity" budget included in this packet that details our Phase One needs that total $241,000. In regards to Phase Two, we are beginning the process of investigating options for Furnish Hope to purchase a warehouse space with 12,000+ square foot storage capacity in order to keep pace with the increased number of referrals coming through the pipeline each week. Based on the current market and including costs to rehab the facility to meet our needs, we are anticipating that Phase Two would entail an approximate $3 million dollar investment. We are excited about the future of Furnish Hope and what we can do to come alongside our neighbors throughout Central Oregon. We are at the beginning of securing support for expanding our capacity to meet the need. Furnish Hope would be honored to have the backing of the Deschutes County Commissioners as we work together to serve families in our local community. If you have any questions about the work Furnish Hope is doing or would like to come to take a tour of our current facility, we are happy to accommodate any requests. Thank you for your time and consideration. Together, we furnish hope and homes! With gratitude, Megan Martin Deborah Asato Mary Barlow FURNISH HGPE Furnish Hope is bursting at the seams! What began only three years ago, in 2019, with a goal of furnishing 22 Habitat homes in the first year, quickly exceeded that goal and expanded to partner with 24 more referring agencies in addition to Habitat. Unlike many businesses that closed their doors in 2020 due to the pandemic, Furnish Hope became a front-line provider to those that were impacted by increased hardships. In 2020, we furnished 191 homes for our neighbors in need. As awareness about our unique mission and collaboration with partnering agencies expanded, we saw a steady increase in referrals throughout 2021, and ended the year furnishing 373 homes. We have seen our capacity stretched to its limits, and we need support in order to take the next step towards building sustainable capacity that will serve the people in our community well for generations to come. PHASE ONE: BUILD CAPACITY GOAL NEED DETAIL $20,000 MARKETING DEVELOPMENT website, collateral, advertising $25,000 INTERIM STORAGE EXPANSION racks, shelving, 2 additional shipping containers $36,000 TRANSPORTATION SERVICES 2nd vehicle balance, maintenance, logo, tires, service, gas, insurance $40,000 ANNUAL HOME ESSENTIALS FULFILLMENT weekly consumables: dressers, bed frames, linens $60,000 TRANSPORTATION FLEET EXPANSION purchase 3rd towing vehicle, additional trailer $60,000 ADMINISTRATIVE ASSISTANT/STORE MANAGER 2 part time positions $241,000 TOTAL PHASE ONE PHASE TWO: BUILD CAPACITY GOAL $3,000,000 $3,241,000 NEED EXPANSION: WAREHOUSE ACQUISITION & REHAB COMBINED TOTAL PHASE ONE & TWO DETAIL purchase 12,000 sq. ft. warehouse space w/storefront 2020 vs. 2021 Impact Data FURNISH HCVPE Number of Households Served 400 300 200 100 0 190 2020 M 2021 Number of Children Served 600 400 200 237 0 2020 M 2021 Number of Individuals Served 1250 1000 750 500 250 0 447 2020 M 2021 Number of Volunteer Hours 4000 3000 2000 1000 0 2020 M 2021 Number of Home Essentials Delivered 12500 10000 7500 5000 2500 0 2020 M 2021 Number of Beds Re -Homed 400 300 200 100 0 230 2020 M 2021 Number of Different Cities Served 12 10 8 6 4 2 0 6 2020 M 2021 Number of Referring Agencies 60 40 20 0 31 2020 M 2021 JANUARY - DECEMB %*• FURNISH EPZ7PE FH 1006 SE 9th Street 541-638-0657 Bend Oregon 97702 furnishhope.com 2 WHAT WE DO Furnish Hope trans- forms empty houses into welcoming homes for families in need of furnishings & household essentials throughout Central Oregon. OUR MESSAGE Furnish Hope started with a vision where the most marginalized families in our commu- nity would have a place to call home including beds to sleep in and tables to gather around. 44 Furnish Hope enhances lives with furnishings and household essentials. Together, we furnish hope and homes. Imagine overcoming incredible hardship that adversely affected your housing situation —and then feeling the relief oftransition- ing to stable housing —only to realize you now need basic furnish- ings and housewares you cannot afford. Furnish Hope was born in 2019 from the firsthand experience of how daunting the transition to stable housing can be. Not only do simple necessities like beds, linens, and dishes provide normalcy, they create a sense of home and hope for the future. Two years ago, we absolutely knew there was a tangible need for our mission, but could never have imagined how widespread the demand would be in Central Oregon, and the overwhelming gen- erosity Furnish Hope would receive from donors, volunteers, and community organizations. Today, Furnish Hope partners with over 50 agencies to furnish an average of 30 homes each month in Central Oregon. We could not provide this outreach without the volunteers, business part- ners, and donors who take a seat at the Furnish Hope table to ensure all families have tables to gather around. We invite you to join our table, too. With gratitude, Megan Martin, CEO Mary Barlow, CFO Deborah Asato, COO 3 5-1--t001-or "I help translate with our Latino community for Furnish Hope, but that's not how this story started." Imelda's teenage son and his younger brother hid in a bedroom with the family dog when their home was broken into. As the living room was ransacked, the youngest son began to cry and the thieves fled. After the break-in, every noise or knock put the family on edge and the trailer they lived in no longer felt like a home. She says the dream of owning a "real house" seemed out of reach, but friends helped Imelda and her husband find a new home, and a friend's realtor suggested they connect with Furnish Hope. "The next day, Furnish Hope contacted me. Words cannot describe how our family felt seeing our house transformed into a warm, welcoming home!" Today, Imelda is just one of our multiple recipients who now takes a seat at the table as a Furnish Hope volunteer and business partner HELPING OREGON FAMILIES We furnish homes and share hope with our Central Oregon neighbors in need. CITY 1QUSES FURNISHED Bend 207 Redmond 53 Madras 39 La Pine 27 Prineville 26 Warm Springs 7 Sisters 5 Terrebonne 4 Outlying Areas 5 4 416+y Furnish Hope currently serves an average of 30 households per month, and we are projecting that we will serve approximately 1,000 individ- uals in this coming year! 100% of this budget ensures we can provide basic furniture and household essentials to transform empty houses into welcoming homes for our Central Oregon neighbors in need. 14 k WAREHOUSE & TRANSPORTATION r257 OFFICE, PERSONNEL & INSURANCE 32K FUNDRAISING & MARKETING 2 c 5 FURNITURE. & HOUSEHOLD ESSENTIALS 4% 20% 35% 40% WHO DO E L IMPACT Your support transforms empty houses into welcoming homes 1032 INDIVIDUAL RECIPIENTS 510 CHILDREN SERVED 373 HOUSEHOLDS 54 REFERRING AGENCIES 3785 VOLUNTEER HOURS 5 When you share a financial gift with Furnish Hope, you are support- ing a network of over 50 local agencies working together to provide resources and SHARE HOPE with: Veterans Foster Kids & Families Aged -out Foster Youth Survivors of Domestic & Sexual Violence 10 • 4110 eel Neighborlmpact /bethlehem Linn shelter • help • hope FOSTER CARE AGED OUT FOSTER YOUTH Victims of Natural Disaster Overcomers of Addiction Advocates for Kids in Schools Individuals with Chronic Illnesses or Disabilities HOMELESSNESS RECOVERY )tiestCare N RACE DOMESTIC VIOLENCE thriVe VETERANS 6 An invitation to gather together to furnish hope and homes. Ready to help furnish hope throughout our community? There are so many seats at the table to fill, and at least one is waiting for you. UR GOAL 60 SEATS NEEDED 20 SEATS NEEDED 70 SEATS NEEDED 8 SEATS NEEDED 50 SEATS NEEDED 5 SEATS NEEDED 100 SEATS NEEDED 3 SEATS NEEDED 20 SEATS NEEDED 4 SEATS NEEDED 7 rix,r4 202d-2021 1-74,s4,act(Pdivy Amazon Smile Andee Phillips Andrew & Nicole Hunzicker Andy & Megan Martin Ann Johnson Ann Willis Anna Haar Ashley Pelaez Liese Frankenstein and Sallie Neillie Barbara & Steve Wilson Education Fund Inc Becky Kliewer Bend Happy Home Bend United Methodist Women Bethany Graham Betti Fujikado Beverly Asato Bob & Sid Paquin Bob Dewittie Bradford & Lisa Bailey Bradford Henson Brandi LeCre Brandon Anderchuck Brandon B. Carla Will Carol Doran Carol Graham Carole Hayward-Lightell Catherine Thielen Cathy Bullock Central Oregon Association of Realtors Charles & Susan Burchfield Cheryl Glick Chris Barlow Cindy Howard CJ Berry Foundation Clarissa Schuh Cole Billings Consumer Cellular Crevier Family Fund of the Orange County Community Foundation Dale & William Flexner Dan & Marlys Lawry Danielle Ramage Danny & Joan Martin Darcie McNally David Roozen Debbie Wightman Deborah M Asato Deborah Nicholson Deschutes County Design Bar Bend Devon Pfeiffer Dina & Scott Rhoden Dorothy Williams Duane & Melinda Bailey First American Title Insurance Company First Interstate Bank Flexpak Corporation Barbara & Michael Flynn Foundation For Afffordable Housing Gary & Shauna Weltman Genelle Brunne George Munoz Georgia Griego Henry Fairbrother III High Desert Insurance Isaac MM Montoya James & Patricia Petersen Jeanette King Jeannie Hignell Jeff & Patsy Melville Jennifer & Gerald Sather Jennife r Beech Jessica Wedgewood Jillianmade Inc Joanne & Derek Berry Joanne Kienzle Judy & Kevin Stoltz Julie Valencia Justin & Erin Isbell Jylan Maloy Kacey Taylor Karly Ritter Karrie Sweeney Kaylen Thompson Kelley Salber Ken Verhaalen Keyte Family Foundation Kim Jalbert Kip Worley Kirk Johnson Kristen & Jason Thrasher Lara Hodge Larry Thielen Laura Berg Lauren O'Sullivan Lee & Barbara Bouck Les Schwab Tire Centers Linda Horowitz Lisa Haase Lisa Shofstall Lorena Cox Lori Drgastin Mack & Pam Bagby Marcus & Stacey Walker Martha Bushko Martha Senger Mary Barlow Mary Elizabeth Davies Maryann McCormack Matthew Montoya Michael J Tennant Charitable Fund Miriam Martin Mischelle Townsend Monarch Marketing Monica Service Monica Tomei Nancie Allen Nancy & Daniel Henderson Nancy Herr Natalie Donato Natasha Smith NeighborShare Network for Good Nicole Alcorn NW Storage w/Emma's Gift Pampered Chef: Dawn Kloos Patricia Mood Pay it Forward of Bend Oregon Pelican Bay Forest Products, Inc Randon Beech Randy & Sue Burchfield Rebecca & David Thielen Repeat Pattern Co. Richard & Hazel Schieferstein Rise Wellness River Roofing Robin Burford Rosalee Hermens Ruthie & Dan Higgins Ryan Crosby Samantha Jane Weald Sandra Cummins Sandra Sherritt Sarah & Jeremiah Bascue Scott & Dinah w/Bend Happy Home Shalom Sharron & Harold Hill Sheryl Massine Shirley Hanley Soda Creek Holdings: Courtney Holton & Patsy Melville Spencer Schuh Spoken Moto Stacy Prusak Stan & Patty Stieben Susan Olson Susan Woolley Tara & Ryan Endries Tara Parsons Ted Schuh Teri & Dick Kruger Terry Brewer Terry Powers Terry Skjersaa The Anjulicia Foundation Theresa Ellis Theresa Kelley Thomas Wright Tim Holmberg Tom Waldron Top Down Home Inspection Valerie DalSoglio Virginia & Robert Saxton Welcome Home Experience Wendy Seiden Wesley Wilson Westside Church Wildflower Fashion Truck Worthy Brewing Co Xenia Emmanuel Foundation 1:fivictleAv 8 FH FURNISH HYPE 320 SW Century Drive, Suite 405-125 I Bend, Oregon 97702 hello©furnishhope.com 1541.638.0657 FURNISH HOPE ISA5O1(C)(3) TAX ID 84-3946242 f0 CO N +• Ln Ln m m 5-I IO N N N N N c0 rn 00 O O Q00 00 00 N 01 ba • O Ln oo 00 fd oo N N co m u a, o Ln 00 0 Cr) CO 00 CO 00 00 00 0 Cs • N m d Ln C CO O O N i •f N (51 5 -I In CC - 13 CIO c CO N d Ln rl m t U aJ c • N Ln �-i m m a) 0 H co a) u o o - > V L a •y L •o a a, 3 0 .Q u 0 c0 a 0- U CO Z BOARD OF COMMISSIONERS AGENDA REQUEST & STAFF REPORT MEETING DATE: July 20, 2022 SUBJECT: Performance Measure Update from Environmental Health BACKGROUND AND POLICY IMPLICATIONS: At the February 23 Board meeting, Commissioners received a Q2 Performance Measure update from Environmental Health Supervisor Eric Mone, for the following measure: Reduce outbreaks and food -borne illness by inspecting a minimum of 95% of licensed facilities (e.g. restaurants, pools/spas/hotels, etc.) per state requirements. This falls under the County goal of Healthy People: Enhance and protect the health and well-being of communities and their residents, with the objective to support and advance the health and safety of Deschutes County's residents. During the February meeting, the Board requested a status update for the Q3 meeting. Q3 Performance Measure updates were provided at the July 6 Board meeting, which included a written update from Eric Mone. The Board requested a follow up presentation from Eric, which he will provide at the July 18 Board meeting and be available for any questions. Below are quarterly updates the Board has received thus far, as well as Q4 inspection data provided by Eric for discussion at the July 18 meeting. Q2: 63/782 = 8%. Significant EH staff time continues to be spent on the COVID-19 response, including 591 business outreach calls this quarter (compared to 377 last quarter), responding to complaints (70 this quarter), and outbreak follow-up. The team is aiming to resume more normal inspection volume when safe to do so (e.g. Omicron surge). Q3: 72/716 = 10%. EH conducted more business reach -outs for Covid follow up in January, 2022 than any other month since the pandemic started. Approximately 400-900 cases per day in January. Cases were falling steadily in Feb/March and with the mask mandate being lifted on March 14, EH inspectors have been getting back into the field for routine inspections on Food, Pool, and Lodging facilities. Those inspections are available for viewing on the Environmental Health Website. Q4 Inspection Data: 426/861 = 49% 18 - Pre -Opening Inspections Food (e.g restaurant, catering, commissary) 95 - Semi -Annual Inspections Food 2 - Semi -Annual Inspections Food - Not Operating 35 - Re -inspections Food 39 - Pre -Opening Inspections MFU 21 - Semi -Annual Inspections MFU 2 - Semi -Annual Inspections MFU - Not Operating 6 - Re -inspections MFU 1 - School Pre -Opening Inspections 57 - School Semi -Annual Inspections 3 - School Re -inspections 2 - Pool/Spa Pre -Opening Inspections 54 - Pool/Spa Semi -Annual Inspections 2 - Pool/Spa Annual Inspections 5 - Pool/Spa Re -Inspections 2 - Pool/Spa Consultation Inspections 3 - Tourist Facility Pre -Opening Inspections 17 - Tourist Facility (hotel/motel) Inspections 1 - RV Park Semi -Annual Inspections 25 - Childcare Annual Inspections 36 - Temporary Restaurant License Inspections (events) BUDGET IMPACTS: None ATTENDANCE: Eric Mone, Environmental Health Supervisor Laura Skundrick, Administrative Analyst BOARD OF COMMISSIONERS AGENDA REQUEST & STAFF REPORT MEETING DATE: July 20, 2022 SUBJECT: Grant follow up 1. 2022 Spay & Neuter Grant Awards Deschutes County's Dog License and Pet Identification Application forms provide an opportunity for residents to make a voluntary donation to support spay and neuter services. These donations, supplemented by the general fund, are offered to local non-profit organizations which provide spay and neuter services in Deschutes County for both feral animals and pets whose owners are unable or unlikely to access or afford the procedure. Grant funds may also be used for educational or promotional programs focused on encouraging or expanding spay and neuter procedures in Deschutes County. To be eligible for the program, applicants must be designated by the Internal Revenue Service as a 501(c)3 tax-exempt organization, located in Deschutes County and able to certify that grant proceeds will be used to support services benefiting Deschutes County residents. On May 11, 2022, the Board of Commissioners approved a total of $11,000 for multiple awards. Staff then issued a news release, posted a solicitation, and notified past applicants of the available funding. Five applications were received in response to the solicitation. Those applications were then reviewed and evaluated by the Dog Control Board of Supervisors, whose scores were averaged to provide the recommendation included in the Board's meeting materials today. Also attached to this staff report are the five applications received. During the Board's July 18 meeting, staff will seek Board direction on grant awards for the 2022 Spay & Neuter Grant program. 2. Discretionary Grant Follow-up from 7/11 ATTENDANCE: Laura Skundrick, Administrative Analyst BOARD OF COMMISSIONERS SPAY & NEUTER GRANT PROGRAM Organization: Companion Animal Medical Project (CAMP) Project: Coordinate spay/neuter services for companion animals of people experiencing homelessness or significant financial distress Estimated impact/cost: With the 2021 grant, 32 companion animals were spayec/neutered and they expect great needs in 2022 with an already existing waitlist. Dog Board 2022 funding recommendation: $2,161 S&N Grants awarded in past five years: 2021 $2,359 2020 $2,683 Deschutes County Spay and Neuter Grant Application 2022 A complete application will consist of the following: 1. This cover sheet, signed and dated. 2. Narrative responses to the questions which appear at the end of this document submitted on no more than three separate, single -sided, single-spaced pages. 3. Attachments as follows: a. Proof of the organization's 501(c)(3) tax-exempt status in the form of a letter from the Internal Revenue Service (IRS). b. An operating budget specific to the proposed program, project, or activity. c. A financial statement that shows actual total revenue and expenditures for the most recently completed 12-month period. d. A roster of the organization's current Board of Directors. Submit the completed application electronically to laura.skundrick@deschutes.org no later than 5:00 p.m. on June 8, 2022. Late or incomplete applications will not be considered. Information or materials submitted instead of or in addition to those specifically requested in this application form will not be reviewed. Contact information Organization Name t"Qencaoor" ' \eccx 1Y\e a`X V,Qec* Address Comet (0 C00V - V —1O CityA Zip Code G1-r10'2") Phone Number 5ki11-129'6(-6 °1 Alternate Phone Number ?/ 00 `BSI -CAL-toN Fax Number Email Address 00“gPVek.✓inG ckyv S ,COrnati 1 • Cum Website Created with Scanner Pro By signing below,) certify the following: 1. All information provided to Deschutes County in this application is correct. 2. I am authorized by the governing board of the stated organization to submit this grant application. 3. This organization is in good standing with the IRS and retains its official 501(c)(3) tax-exempt status. 4. This organization is located in Deschutes County. 5. Any proceeds from a grant award will be used in support of Deschutes County residents. Print Name Jlticnr\nc/.h JGh(' Ci" k„Nie k(\e rio Signature Title FOu(Nok n6 E xe C, J-k _ Date t�[l•.' ?�k`' 2022 On a separate sheet(s), please briefly answer the following questions: 1. Describe the history of your organization. 2. State the mission of your organization. 3. Describe the leadership and structure of your organization. 4. Describe the primary activities conducted by your organization. 5. Describe the specific program, project, or activity that a Spay and Neuter grant would support, if awarded. 6. Describe how this program, project, or activity would positively impact the goal of promoting or expanding spay and neuter procedures. 7. Explain the anticipated outcomes of this program, project, or activity and describe how success will be measured. Attach: 1. Proof of the organization's 501(c)(3) tax-exempt status in the form of a letter from the Internal Revenue Service (IRS). 2. An operating budget specific to the proposed program, project, or activity. 3. A financial statement that shows actual total revenue and expenditures for the most recently completed 12-month period. 4. A roster of the organization's current Board of Directors. 1 300 NW Wall Street Bend, 01egon 97/03 6 G5 admill <Pdeschu(es or www desclwle5 ore, Created with Scanner Pro 1. Describe the history of your organization. Companion Animal Medical Project was founded in 2020 by a group of animal and human advocates, with professional expertise in the fields of veterinary medicine, social assistance, healthcare, pet nutrition, animal welfare, advocacy, and organizational leadership. CAMP members and volunteers host monthly wellness/vaccine clinics in houseless communities in both Bend and Redmond. To date, CAMP has provided 400 vaccines, spay/neutered 120 pets, facilitated 15 life-saving emergency visits, and passed out over 1000 lb of pet food all at no cost to the owner. There is an unprecedented need for preventative veterinary care in our community both for pet owners housed, unhoused, or at -risk of homelessness. Our recent Point in Time Count estimates that there are 1,286 individuals experiencing homelessness throughout the tri-counties, a 17% increase from last year's PIT count. Additional data from the "National Coalition for the Homeless estimates that 10% of the total population of people experiencing homelessness have a pet that they care for. Other groups, especially social service providers, estimate that as many as 25% of all people experiencing homelessness care for a pet." (https://palletshelter.com/blog/2020-2-17-pets-and-homelessness/). Using this data we estimate that within Central Oregon roughly 100 pets belong to those who are unhoused- however may houseless individuals own multiple animals. CAMP's goals include reducing the number of unvaccinated pets, decreasing the number of unplanned litters, increasing pet- retention, and advocate and support the human -animal bond. Accessible spay/neuter is crucial for our communities' unhoused pet parents. On average, CAMP receives 15 calls per month from pet owners experiencing homelessness asking for their pets to be spay/neutered. This is a service and request we simply cannot, as a community -based organization, decline. The importance of this service cannot be expressed enough by everyone in our community. 2. State the mission of your organization. CAMP aims to help ease the burden on those experiencing homelessness or facing other debilitating financial hardships by providing veterinary care and supplies to their companion animals. 3. Describe the leadership and structure of your organization. The Founding Executive Director Johannah Johnson -Weinberg is also currently the Community Outreach Lead at Thrive Central Oregon, which connects individuals to resources within the community. Thrive has "in-depth knowledge of resources including Housing -Food - Shelter -Health care and insurance Employment Disability support SSI/SSD Senior support." Johannah holds a degree in Sociology and a minor in Psychology from Western Washington University, as well as a certificate in Applied Animal Behavior from the University of Washington. For the last six years, Johannah has served the Central Oregon companion animal population and is passionate about advocating for the human -animal bond. The board of directors, staff, and pool of volunteers bring an impressive combination of expertise to the human and animal population. The co-founder and medical director are both veterinarians (DVM's) and all of our staff bring a passion for working with the houseless and their companion animals. 4. Describe the primary activities conducted by your organization. CAMP hosts monthly clinics providing wellness exams, core vaccinations, spay/neuter, emergency care, pet food, basic supplies, and transportation when needed. To date, CAMP has provided 400 vaccines, spay/neutered 120 pets, facilitated 15 life-saving emergency visits, and passed out over 1000 lb of pet food all at no cost to the owner. 5. Describe the specific program, project, or activity that a Spay and Neuter grant would support if awarded. Among many requests received, spay/neuter is the number one request. Since CAMP has started we have spay/neutered 120 companion animals belonging to pet owners experiencing homelessness with a growing waitlist. With the closure of the area's only low-cost spay and neuter clinic, we have seen an increased need from pet owners housed, unhoused, and at -risk. CAMP's mission was formulated to meet the needs of those experiencing homelessness or facing other debilitating financial hardships intentionally so we can alleviate veterinary resource deserts and take an upstream approach to curb pet overpopulation. Through compassionate and non -judgment care, we have built trusted relationships with pet owners at our CAMP clinics. We sign pets up for spay/neuter and help arrange transportation if that is a barrier for a pet owner. Funding will ensure that CAMP clinics will be able to continue to provide this necessary service to all who are in need, thereby minimizing the pet overpopulation in our houseless communities. 6. Describe how this program, project, or activity would positively impact the goal of promoting or expanding spay and neuter procedures. Individuals seeking CAMP's services have made it very clear. They overwhelmingly support and are interested in having their companions spay and neutered! The largest barrier for the people we serve is monetary. By providing access to no -cost spay and neuter services, we have been able to overcome the financial burden that has prevented houseless pet owners from seeking surgical alterations for their pets. Currently, with all funds used from the 2021 Deschutes County Spay and Neuter grant, we have multiple animals on the waitlist from Redmond, Juniper Ridge, China Hat, Hunnell Rd, and generally throughout the Bend area. As the need continues to grow, funding will allow CAMP to continue to meet the increased need, organize and support additional clinics and better serve our community's needs. 7. Explain the anticipated outcomes of this program, project, or activity and describe how success will be measured. With 2021 DC Spay and Neuter grant funds, we were able to alter 16 female dogs, three female cats, four male cats, and nine male dogs, totaling 32 companion animals. We anticipate an even greater need in 2022 with an already existing waitlist. Using medical records and tracking sheets, CAMP can accurately determine the number of spay/neuter services performed. While we cannot be exact, anecdotally we have seen a significant decrease in the number of unplanned litters in houseless communities in both Bend and Redmond. Measured more subjectively is the level of trust we have built in our houseless communities. Pet owners are now allowing us to alter litters before homes are found in camps! As you can imagine this is quite a significant step and goes to show that when you add compassionate and respectful engagement into the mix, great things can be accomplished. CAMP is successful as it is because we do not force individuals to spay and neuter their pets or have other requirements to receive our services. We have found that by showing up, being consistent, and simply asking how we can help, we have developed truth within the unhoused community. Did you know that 508 puppies can be born from one unspayed female dog and her offspring in seven years? (https://www.snapus.org/spay-neuter-facts-overpopulation-facts/) Surgery (type) (per year) (per surgery) (per year) Female dogs Male dogs Female cats Male cats Total 20 15 7 7 49 $125.00 $100.00 $60.00 $50.00 $2,500.00 $1,500.00 $420.00''. $350.00 $4,770.00' r Department of the Treasury Internal Revenue Service �t Tax Exempt and Government Entities mw P.O. Box 2508 Cincinnati, OH 45201 COMPANION ANIMAL MEDICAL PROJECT 46482 COOK AVE NO 70 BEND, OR 97703 Date: 09/14/2021 Employer ID number: 85-2876037 Form 990I990EZ/990-N required: Yes Person to contact: Name: Ms. Elliott ID number: 31886 Telephone: 877-829-5500 Dear Applicant: In your letter dated May 3, 2021, you requested a reclassification of foundation status as a public charity. Our records indicate you are classified as a private foundation. You claim you're erroneously classified as a private foundation and are requesting correction of the error. Based on the information you provided, we determined you meet the requirements for classification as a public charity described in IRC Sections 509(a)(1) and 170(b)(1)(A)(vi) and updated our records. Because your tax-exempt status wasn't under consideration, you continue to be classified as an organization exempt from federal income tax under IRC Section 501(c)(3). For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter "4421-PC" in the search bar to view Publication 4421-PC, Compliance Guide for 501(c)(3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements. This letter could help resolve questions on your foundation status. Keep it for your records. We sent a copy of this letter to your representative as indicated in your power of attorney. Sincerely, y%7 Ge a- • edt Gt- Stephen A. Martin Director, Exempt Organizations Rulings and Agreements Letter 4425 (Rev. 8-2020) Catalog Number 52256W Created with Scanner Pro 2021 Actuals b} 0, O O O o0 d' O O N ON O I. so so N O Ln 'O CO to ri 'O to to c-I c-i to N to ul c-i to N 0` N c-i t-i d' 0 \ -1 N CO c-I 1d-11! to N N N ,-11 M - to to N ! c- I to to to to tf} I 1 ifl- I N C ri 1 O 00 117 '0 to Veterinary Services N O in ri Ln Ln O r ON O in O Lo O O N N 0 dt 0 CO 0 I� ON 4.4 CO to CO to to CO CO CO N 'EFT 00 N co d' to to O` to ,' to to to to rj to to to I N 1 i i i I i I I i O O O O O O O O O O O O O O O O O to 0 0 O O in O to O O co O Ln 'O 0 0 N N 'O d" d' '0 CO 0 N M ,zt N ri 4\ N N M c-i Nv3to 1 to N r1 to to to to to to to to 1 to Veterinary Supplies Emergency Medical Plateau Credit L CU CU Z as Food/Leashes/Etc Shelter Fees Administrative Salaries and Wages Office Supplies Merchandise Auto Insurance au u. Registration/License Repairs/Maintenance Board of Directors Johannah Johnson -Weinberg Founder/Executive Director 64684 Cook Ave #70 Bend, OR 97703 Courtney Gallant President 2113 SW 35th Place Redmond, OR 97756 Stacy Parks Treasurer 60026 Cinder Butte Rd Bend, OR 97702 Qwen Gist Interim Secretary Community Outreach 2414 NW Brickyard St Bend, OR 97703 Sierra Catcott Strategic Planning 63063 Angler Ave Bend, OR 97703 Medical Director: Dr. Erin Cook, DVM Lived Experience Outreach Advocate Justice BOARD OF COMMISSIONERS SPAY & NEUTER GRANT PROGRAM Organization: Ember's Wildflower Animal Sanctuary Project: Spay/neuter each raboit Central Oregon. orior to its adoption, as the only rabbit sanctuary in Estimated impact/cost: Since opening in 2019, 198 rabbits have been spayed or neutered, 3 are currently on the waitlist. Each spay procedure costs 5150, neuter $97 Dog Board 2022 funding recommendation: $2,032 S&N Grants awarded in past five years: 2021 $1,580 Deschutes County Spay and Neuter Grant Application 2022 A complete application will consist of the following: 1. This cover sheet, signed and dated. 2. Narrative responses to the questions which appear at the end of this document submitted on no more than three separate, single -sided, single-spaced pages. 3. Attachments as follows: a. Proof of the organization's 501(c)(3) tax-exempt status in the form of a letter from the Internal Revenue Service (IRS). b. An operating budget specific to the proposed program, project, or activity. c. A financial statement that shows actual total revenue and expenditures for the most recently completed 12-month period. d. A roster of the organization's current Board of Directors. Submit the completed application electronically to Iaura.skundrick@deschutes.org no later than 5:00 p.m. on June 8, 2022. Late or incomplete applications will not be considered. Information or materials submitted instead of or in addition to those specifically requested in this application form will not be reviewed. Contact Information Organization Name Ember's Wildflower Animal Sanctuary & Bunny Rescue Address 2584 NW 58th Street City Redmond, OR 97756 Phone Number (541) 419-9173 Alternate Phone Number (541) 221-1478 Cindy Hamlin Fax Number N/A Email Address wildflowerbunnylove@gmail.com Website http://emberswildflower.org/ By signing below, I certify the following: 1. All information provided to Deschutes County in this application is correct. 2. I am authorized by the governing board of the stated organization to submit this grant application. 3. This organization is in good standing with the IRS and retains its official 501(c)(3) tax-exempt status. 4. This organization is located in Deschutes County. 5. Any proceeds from a grant award will be used in support of Deschutes County residents. Print Name Lindsey Provost Signature Title President/Founder Date May 28, 2022 Deschutes County Spay and Neuter Grant Application 2022 1. Describe the history of your organization. In April 2015, our Founder/President Lindsey was given Ember, her first bunny, as a gift the day before Easter. He showed her how special bunnies are and inspired her to save as many as she could. She soon learned bunnies are the 3rd most abandoned pet and decided to help. Lindsey started Ember's in January 2019 and became an official 501(c)(3) nonprofit in March 2019. Bunnies are Ember's main focus, although we love all animals and have a small variety. We are happy to provide a place for children and adults to volunteer with animals, where they can learn and practice kindness for all beings. We plan small events for children to interact with our animals. In addition, we provide local presentations and have been featured on Central Oregon Daily News and in Source Weekly and Bend Magazine to spread awareness and education in our community. We also recently collaborated with Humane Society of Central Oregon to receive a reduced fee for spays/neuters. In our short time open, we have taken in 290 bunnies (have 7 on the waitlist), spayed or neutered 198, placed 173 into loving homes and currently provide sanctuary for 94 bunnies and 6 other animals. We are the only sanctuary in Central Oregon dedicated to bunny rescue and are eager to continue to grow and make a difference. Our most recent accomplishment was fundraising ($13,000+) and building an expanded bunny barn which holds three times+ (3x) the number of bunnies our previous shed. Due to the expansion and the current need for surrender, we project our need for spay/neuters to expand accordingly. This past year our spay/neuter costs were $5,093 and our vet bills (not including spay/neuter) totaled $1 1,048. We respectfully seek a total amount of $3,000 to help pay for approximately half of the spay/neuters in 2022 (see attached spreadsheet). 2. State the mission of your organization. We provide a safe place for rescued animals to receive the love and care that they deserve while offering education to the public regarding the need for domestic bunny rescue and spay/neuter. Our main focus is to take in bunnies, including special needs, and provide the medical care they need as well as spaying and neutering bunnies before adopting them into loving homes. 3. Describe the leadership and structure of your organization. President/Founder: Lindsey Provost Treasurer: Cindy Hamlin Secretary: Jennifer Hammond Member -at -Large: Kristy Kwan Member -at -Large: Lorraine Murray Member -at -Large: Jenee' Mohler 4. Describe the primary activities conducted by your organization. Ember's main focus is taking in unwanted or abandoned domestic bunnies, especially those with special needs, in order to care for their health needs, spay/neuter and adopt out into loving, forever homes. 5. Describe the specific program, project, or activity that a Spay and Neuter grant would support, if awarded. It is Ember's policy to spay or neuter each bunny that is surrendered, in addition to microchip and RHDV2 vaccination, prior to adopting out. This grant support will ensure that we are able to accomplish this in a timely manner in order to take in and adopt out as many bunnies as possible. Previous to the RHDV2 outbreak in Oregon, we had partnered with the HSCO to receive discounted spay/neuters. Due to RHDV2, they are no longer taking in bunnies, therefore we are unable to get that discount. 6. Describe how this program, project, or activity would positively impact the goal of promoting or expanding spay and neuter procedures. Our spay/neuter policy has already positively impacted the lives of numerous bunnies. Male and female bunnies are at higher risk of cancer if left unaltered. If we are able to get grant funds, we will be ensured of getting all of our surrendered bunnies spayed or neutered in a timely manner in order for them to be eligible to adoption. 7. Explain the anticipated outcomes of this program, project, or activity and describe how success will be measured. Spay and neuter is essential in bunny rescue. There are numerous domestic bunnies dumped into the wild who then reproduce at record rates. Most people are unaware, but female bunnies are able to carry two litters at the same time and are able to become pregnant as soon as they give birth. We are the only bunny rescue in Central Oregon and it is our policy for each surrendered bunny to be spay or neutered, microchipped and vaccinated against RHDV2 before adopting out. Success will be measured by the amount of funds received paying for the spays and neuters needed over the remainder of this year. Our reduced cost through Highland Veterinary in Redmond, OR are spay $150 or neuter $97. We currently have 94 bunnies in our care, including fosters. We have successfully spay/neutered 198 bunnies as of today, and currently have 3 waiting to be altered (1 spay & 2 neuters), with the possibility of getting a new mama and babies surrendered soon. CURRENT ADOPTEES 1 Sugar F 1/5/2022 $105.00 2 Spice F 1/5/2022 $150.00 3 Lupine F 1 / 19/2022 $150.00 4 Twig M 1/25/2022 $97.00 5 Aria F 1/26/2022 $150.00 6 Pebble M 2/ 1 /2022 $97.00 7 Pippin F 2/3/2022 $150.00 8 Savanna F 3/15/2022 $150.00 9 Thyme M 3/15/2022 $97.00 10 Morel M 5/3/2022 $97.00 11 Shiitake M 5/3/2022 $97.00 12 Portobello F 5/10/2022 $150.00 13 Oyster F 5/12/2022 $150.00 14 Lucy F 5/12/2022 $150.00 15 Valor M 5/17/2022 $97.00 16 Virtue M 5/17/2022 $97.00 17 Liberty M 5/25/2022 $97.00 18 Tranquil M 6/2/2022 $97.00 19 Peace M 6/7/2022 $97.00 20 Mandy F $150.00 WAITLIST 21 Onyx M $97.00 22 Blue M $97.00 23 Caleb's New Zealand M $97.00 24 Caleb's New Zealand F $150.00 25 Traci's stray F $150.00 26 Traci's stray Unsure $150.00 27 Nicole's Mama F $150.00 28 Nicole's Mama 6 babies Unsure $741.00 TOTAL HALF YEAR $4,057.00 ESTIMATED 2ND HALF $3,000.00 Purpose: Bunny rescue, quality of life betterment, bunny care education and adoption. Budget Revenue Donations, cash Donations, in -kind Grant Surrender fees Adoption fees Boarding fees Fundraising events Fundraising events, direct costs Total Revenue Expenses Food Supplies & enrichment Spay & neuter Other veterinary CareCredit Dues & Advertising Barn build Mileage Total Expenses Change in net assets Note: Ember's is a 100% volunteer organization. January - December 2021 19,888 1,376 6,830 1,918 3,514 562 6,845 (649) 38,908 2,760 1,668 5,093 11,048 9,231 1,915 5,098 356 37,169 1,739 EMBER'S WILDFLOWER ANIMAL SANCTUARY AND BUNNY RESCUE DIRECTORS RESOLUTION OF APPROVING AMENDMENT OF BYLAWS RESOLVED for Section 2. The number of Directors of the Oregon non-profit corporation shall be no fewer than three and no more than nine. The following individuals are elected as directors to serve for the following year and until their successors are duly elected and qualified: LINDSEY SAGE PROVOST CINDY HAMLIN JENNIFER HAMMOND KRISTY KWAN LORRAINE MURRAY JENEE MOHLER RESOLVED for Section 3. The following individuals are appointed to the offices set opposite their name, to serve for the following year and until their successors are duly elected and qualified: Name: Office: LINDSEY SAGE PROVOST PRESIDENT CINDY HAMLIN TREASURER JENNIFER HAMMOND SECRETARY KRISTY KWAN MEMBER -AT -LARGE LORRAINE MURRAY MEMBER -AT -LARGE JENEE MOHLER MEMBER -AT -LARGE RESOLVED FURTHER that any actions taken by such directors prior to the date of the foregoing resolutions adopted hereby, will not have any negative bearing upon this Oregon non-profit corporation. I, LINDSEY SAGE PROVOST, the undersigned President of the non-profit corporation hereby certify that the foregoing Amendment of Bylaws were adopted by the non-profit corporations Board of Directors and is a true and correct record of a resolution(s) duly adopted by the Directors of the corporation on the 27th day of May 2022. IN WITNESS WHEREOF, I have executed my name as President on this 29th day of May 2022. President INTERNAL REVENUE SERVICE P. O. BOX 2508 CINCINNATI, OH 45201 Date: MAR 262019 EMBERS WILDFLOWER ANIMAL SANCTUARY AND BUNNY RESCUE 2584 SW 58TH ST REDMOND, OR 97756-0000 Dear Applicant: DEPARTMENT OF THE TREASURY Employer Identification Number: 83-3668244 DLN: 26053456002969 Contact Person: CUSTOMER SERVICE Contact Telephone Number: (877) 829-5500 Accounting Period Ending: December 31 Public Charity Status: 170 (b) (1) (A) (vi) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: February 21, 2019 Contribution Deductibility: Yes Addendum Applies: No ID# 31954 We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records. Organizations exempt under IRC Section 501(c)(3) are further classified as either public charities or private foundations. We determined you're a public charity under the IRC Section listed at the top of this letter. If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard). If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements. Letter 947 BOARD OF COMMISSIONERS SPAY & NEUTER GRANT PROGRAM Organization: Furry Friends Foundation Project: The Fix is FREE Program: Sponsor and promote spay and neuter procedures for dogs and cats of families in financial harcship, allowing pets to remain in their homes. Estimated impact/cost: Costs have increased due to the dosing of their partner clinic in 2021. Average cost for spay/neuter services are 585/cat and $152/dog. They estimate 40 spay/neuters in 2022. Dog Board 2022 funding recommendation: S&N Grants awarded in past five years: 2021 $2,434 2020 $2,431 2019 $4,400 2018 $3,875 2,123 Deschutes County Spay and Neuter Grant Application 2022 A complete application will consist of the following: 1. This cover sheet, signed and dated. 2. Narrative responses to the questions which appear at the end of this document submitted on no more than three separate, single -sided, single-spaced pages. 3. Attachments as follows: a. Proof of the organization's 501(c)(3) tax-exempt status in the form of a letter from the Internal Revenue Service (IRS). b. An operating budget specific to the proposed program, project, or activity. c. A financial statement that shows actual total revenue and expenditures for the most recently completed 12-month period. d. A roster of the organization's current Board of Directors. Submit the completed application electronically to Iaura.skundrick@deschutes.org no later than 5:00 p.m. on June 8, 2022. Late or incomplete applications will not be considered. Information or materials submitted instead of or in addition to those specifically requested in this application form will not be reviewed. Contact Information Organization Name Furry Friends Foundation Address 412 E. Main Ave., Ste. 4 / PO Box 1175 City Sisters Phone Number 541-797-4023 Zip Code 97759 Alternate Phone Number 541-480-3201 Fax Number n/a Email Address info@furryfriendsfoundation.org Website www.furryfriendsfoundation.org By signing below, I certify the following: 1. All information provided to Deschutes County in this application is correct. 2. I am authorized by the governing board of the stated organization to submit this grant application. 3. This organization is in good standing with the IRS and retains its official 501(c)(3) tax-exempt status. 4. This organization is located in Deschutes County. 5. Any proceeds from a grant award will be used in support of Deschutes County residents. Print Name Kiki Dolson Digitally signed by Ki' i Odsnr, ON: o-Fury Fricents FounrS:5x,os. lens-hfc,41.: ryfri;ndsfwndstk Signature °``%05 Title Executive Director Date May 25, 2022 On a separate sheet(s), please briefly answer the following questions: 1. Describe the history of your organization. 2. State the mission of your organization. 3. Describe the leadership and structure of your organization. 4. Describe the primary activities conducted by your organization. 5. Describe the specific program, project, or activity that a Spay and Neuter grant would support, if awarded. 6. Describe how this program, project, or activity would positively impact the goal of promoting or expanding spay and neuter procedures. 7. Explain the anticipated outcomes of this program, project, or activity and describe how success will be measured. Attach: 1. Proof of the organization's 501(c)(3) tax-exempt status in the form of a letter from the Internal Revenue Service (IRS). 2. An operating budget specific to the proposed program, project, or activity. 3. A financial statement that shows actual total revenue and expenditures for the most recently completed 12-month period. 4. A roster of the organization's current Board of Directors. 1300 NW Wall Street Bend, Oregon 97703 (541) 388-6565 admin@deschutes.org www.deschutes.org "Not all pets in need are homeless, some just need a helping paw." www.furryfriendsfoundation.org I email: info@furryfriendsfoundation.org I EIN: 45-2352228 412 E. Main Ave., Ste. 4 I PO Box 1175 I Sisters, OR 97759 I 541-797-4023 May 25, 2022 Deschutes County Board of Commissioners Deschutes County Spay & Neuter Grant Program Email to: laura.skundrick@deschutes.org Deschutes County Spay & Neuter Grant Program Application 1. History of Organization Furry Friends Foundation first began in 1992 as the Furry Friends Holiday Pet Food Drive in partnership with Sisters Kiwanis Club and Sisters -Camp Sherman RFPD, both located in Sisters, Oregon. The holiday pet food drive application includes requests for free spay/neuter sponsorships, and is distributed in late December. The drive continues today with Furry Friends feeding an 11-year-average of 390 pets per holiday drive. In March of 2012 Furry Friends Foundation expanded its pet food distribution and spay/neuter/vaccine sponsorship services to year-round and became a 501(c)(3) organization known formally as Furry Friends Foundation, Inc. Our support and funding includes The Roundhouse Foundation, City of Sisters grant, Ray's Food Place rewards program, OBRC (Oregon Bottle Recycling Cooperative) and the Deschutes Co. Spay & Neuter Grant Program. We raise other funds year-round primarily through private donations and fund raisers. 2. Mission We are dedicated to improving the welfare of families with pets in the Sisters, Oregon community. It is our mission to help pets stay healthy and remain in their homes through sponsorship of free spay/neuter surgeries, by operating a pet food/supply banks, and by offering monetary assistance for pet wellness, vaccinations and emergency veterinary medical needs to families in financial hardship. 3. Leadership and Structure Furry Friends Foundation offers a weekly pet food/supply distribution every Thursday. We are open by appointment with clients able to call for assistance 7 days a week. We also offer delivery services to those who are disabled and to seniors. During the COVID-19 pandemic we have been able to continue to serve families and seniors. Furry Friends is the sole nonprofit in the Sisters area aiding pets and their families. Applications for spay/neuter and vaccination sponsorships, wellness services and medical assistance are completed at the office or over the phone. The Furry Friend's office maintains a pet food/supply bank and partners with Sisters Kiwanis to facilitate a second pet food bank at their location. Our focus is the area encompassing a 10-mile radius within the Sisters School District; that has an estimated population of 10,000+. Although our focus is the Sisters area, we also receive and approve requests for free spay/neuter sponsorships from Bend, Redmond and LaPine. There is a core group of approximately 10 volunteers. No individual is paid a salary for his or her time by Furry Friends Foundation. The three board members are Kiki Dolson, Marcy Kuhlman, and Jeannie Sandecki. (See attached roster.) 4. Primary Activities (Of Note: An estimated 40% of the clients we serve are seniors living on a fixed income.) a. Free Spay & Neuter Sponsorships: Both dog and cat. With the closing of Bend Spay & Neuter last September we had to find a different program(s). Individuals still fill out a simple application form for sponsorship. We now have a partnership with the Rawley Project's FixBend program with surgeries performed on a monthly basis. We notify FixBend to add a family to the Furry Friends sponsorship list. The family then is assigned an appointment date and transports their pet. Vaccinations and chipping are also sponsored at that time. The Rawley Project then bills Furry Friends Foundation for the surgery and services. Secondly we offer spay/neuters through the SNAP program. Individuals on government assistance who qualify for the program purchase the SNAP voucher, we pay for the additional veterinary costs involved and reimburse the individual for the SNAP voucher if that cost is cause for financial hardship. b. Vaccinations: We sponsor vaccinations primarily through the Rawley Project's FixBend low-cost vaccine clinics. Often the only thing keeping a family from licensing their dog is the expense of the rabies vaccine. So with this sponsorship, Furry Friends paves the way for them to license their pet. c. Two Pet Food/Supply Banks: We maintain 2 pet food banks, one at the Furry Friends office and one at the Sisters Kiwanis Food Bank. We distribute approximately 2 tons of pet food monthly through the pet food banks. The pet food bank at the Furry Friends office also distributes pet supplies including but not limited to chews/ treats, coats, leashes, harnesses, collars, toys, grooming supplies, bowls, shampoo, litter, beds and kennels. There are kennels to borrow for transport to spay/neuter clinics along with a Have -A -Heart trap for feral cats. d. Financial Medical Assistance: The family fills out an application for medical assistance for their pet. Each application is evaluated on a case -by -case basis. Based on that evaluation and when appointments are available, the family is referred to Crooked Tails Veterinary Clinic in Prineville or Plateau Veterinary Clinic in Bend. If the family is unable to transport their pet out of the area, they are referred to one of the three veterinarians in Sisters. We work with Sisters Veterinary, Broken Top Veterinary and Black Butte Veterinary. We begin with a $125 cap to cover the exam and any lab work or medicine prescribed. After the first visit we re-evaluate the level of sponsorship based on the pet's needs and family's ability to pay. We also offer sponsorships for pet euthanasia to families living in all of Central Oregon. e. Misc. services - We handle many individual requests year `round for a large variety of pet supplies, prescription or allergy diet pet food, to lost -and -found pet listings posted on our Facebook page. We work with several Central Oregon pet -related nonprofit groups to facilitate adoption and release of ownership. 5. Grant Program — "The Fix is FREE" We will continue our successful spay/neuter program though 2022 with the campaign title of "The Fix is Free." The campaign will be marketed through free announcements in the local newspaper, limited free newspaper advertising and some at a reduced rate. It will also be promoted heavily through social media primarily the Furry Friends Facebook page and other Central Oregon Facebook pet groups. Further promotion will include flyers attached to the pet food bags distributed at the pet food banks. Word of mouth has spread our message to the Bend, Redmond and LaPine areas. We do honor requests for free spay/neuter sponsorship for clients who live outside the Sisters community target area. 6. Program Impact Continuing this program aids us in sponsoring free spay/neuter surgeries to families primarily in the Sisters area. An important part of the campaign is to educate and emphasize that an altered pet is a healthier pet. We also facilitate the trapping of feral cats in the Sisters area and sponsor their spay/neuter surgeries. 7. Outcome We are confident we can continue to aid the Sisters community by reducing the numbers of unwanted and unplanned cat and dog litters. And, most importantly with this grant help families to keep their pets healthy, in their homes, and out of the crowded Central Oregon shelters. We respectively request a $4,000 grant from Deschutes County. Thank you for your consideration. INTERNAL REVENUE SERVICE P. 0. BOX 2508 CINCINNATI, OH 45201 M A R 2 9, 2n1 2 Date: FURRY FRIENDS FOUNDATION INCORPORATED C/O KATHLEEN DOLSON PO BOX 698 SISTERS, OR 97759-0698 Dear Applicant: DEPARTMENT OF THE TREASURY Employer Identification Number: 45-2352228 DLN: 17053320354011 Contact Person: PETER A ORLETT Contact Telephone Number: (877) 829-5500 Accounting Period Ending: December 31 Public Charity Status: 170(b) (1) (A) (vi) Form 990 Required: Yes Effective Date of Exemption: May 16, 2011 Contribution Deductibility: Yes Addendum Applies: No ID# 31436 We are pleased to inform you that upon review of your application for tax exempt status we have determined that you are exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code. Contributions to you are deductible under section 170 of the Code. You are also qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2106 or 2522 of the Code. Because this letter could help resolve any questions regarding your exempt status, you should keep it in your permanent records. Organizations exempt under as either public charities a public charity under the letter. section 501(c)(3) of the Code are further classified or private foundations. We determined that you are Code section(s) listed in the heading of this Please see enclosed Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities, for some helpful information about your responsibilities as an exempt organization. Letter 947 (DO/CG) -2- FURRY FRIENDS FOUNDATION Enclosure: Publication 4221-PC Sincerely, Lois G. Lerner Director, Exempt Organizations Letter 947 (DO/CG) "Not all pets in need are homeless, some just need a helping paw." www.furryfriendsfoundation.org I info@furryfriendsfoundation.org I EIN: 45-2352228 412 E. Main Ave., Ste. 4 I PO Box 1 175 I Sisters, OR 97759 I 541-797-4023 "The Fix is Free" Campaign Budget 2022 With the closing of our spay/neuter partner clinic in September of 2021 we had a slow start in 2022. It took time to identify a new partnership for spay / neuter surgeries. Though still at a reduced rate from in office veterinary surgeries, our costs increased significantly per animal. We are estimating 40 spay / neuters for 2022. Spay/Neuters Cost Estimate for 40 pets Cat Male - $75 Cat Female - $95 Average Cost per Cat = $85 Dog Male - based on weight of dog - average cost $140 Dog Female - based on weight of dog - average cost $163 Average Cost per Dog = $152 Projected Cost for 40 pets (15 cats, 25 dogs) Cats - $1,275 Dogs - $3,800 Total projected Campaign Cost = $5,075 Total Estimated Cost = Funding from... Deschutes Co. Grant award $5,075 < $4,000 > Furry Friends Foundation Contribution < $1,075 > Balance -0- Average Cost to Deschutes County to spay/neuter 40 pets = $100 per animal Furry Friends Foundation, Inc. 412 E. Main, Ste. 4 PO Box 1175 Sisters, OR 97759 Profit & Loss Statement January 2021 through December 2021 5/17/22 9:39:10 AM Income Donations Donation - In Memory Donations Online FB Network for Good Benevity Fund Fundraiser Sales Ray's Access Reward Card Funds Amazon Smile OBRC Bottle/Can Drive Grants other Roundhouse Grant Deschutes Co. Grant City of Sisters Grant Total Income Cost of Sales Food / Treats / Beds & Toys Spay Neuter Vaccinations Veterinary Care Fundraisers Online & Fees Total Cost of Sales $13,301.90 $2,505.00 $4,596.09 $851.00 $95.60 $315.00 $1,319.97 $308.54 $10,800.00 $5,000.00 $2,000.00 $2,434.00 $1,000.00 $16,243.72 $4,515.00 $3,738.37 $14.97 $578.45 $44,527.10 $25,090.51 Gross Profit $19,436.59 Expenses Office Supplies $467.59 Office Equipment $199.96 Software $179.88 Postage & Shipping $187.40 Fees, Dues & Subscriptions $10.00 Promotion/Public Relations $87.34 Liability Insurance $1,866.00 State Corp Fees $100.00 Bus. License $10.00 Rent $1,950.00 Telephone Verizon $1,732.15 Equipment Dep Exp $289.98 Total Expenses Operating Profit Other Income Other Expenses Net Profit / (Loss) $7,080.30 $12,356.29 $12,356.29 Furry Friends Foundation, Inc. 412 E. Main, Ste. 4 PO Box 1175 Sisters, OR 97759 Balance Sheet As of December 2021 5/17/22 9:37:26 AM Assets Current Assets Cash On Hand Checking Account Total Cash On Hand Total Current Assets Property & Equipment Buildings Equipment Org Cost Equipment Accum Dep Total Buildings Total Property & Equipment Total Assets Liabilities Current Liabilities Accounts Payable Oregon Department of Justice Total Current Liabilities Total Liabilities Equity Retained Earnings Current Year Earnings Historical Balancing Total Equity $100,706.01 $289.98 -$289.98 $100,706.01 $0.00 $35.37 -$116.00 $100,706.01 $0.00 -$80.63 $77,186.23 $12,356.29 $11, 244.12 $100,706.01 -$80.63 $100,786.64 Total Liability & Equity $100,706.01 412 E. Main Ave., Ste. 4 PO Box 1175 I Sisters, Oregon 97759 EIN: 45-2352228 Furry Friends Foundation Board of Directors: Kiki Dotson, Executive Director PO Box 1175 Sisters, OR 97759 Marcy Kuhlman, Director 891 S. Starry Skies Ct. Sisters OR 97759 Jeannie Sandecki, Director 783 Greenridge Sisters, OR 97759 xvTES 0 BOARD OF COMMISSIONERS SPAY & NEUTER GRANT PROGRAM Organization: Humane Society of Central Oregon Project: Community Cat Program reduces the numaer of unsupported and/or unhealthy kittens, therefore reducing feral and free -roaming cat overpopulation. Estimated impact/cost: Average cost per cat surgery is 552. Averaging 40 cats/month, average costs are 52,240. Dog Board 2022 funding recommendation: $2,424 S&N Grants awarded in past five years: 2021 $2,519 2020 $2,569 2019 $8,600 Deschutes County Spay and Neuter Grant Application 2022 A complete application will consist of the following: 1. This cover sheet, signed and dated. 2. Narrative responses to the questions which appear at the end of this document submitted on no more than three separate, single -sided, single-spaced pages. 3. Attachments as follows: a. Proof of the organization's 501(c)(3) tax-exempt status in the form of a letter from the Internal Revenue Service (IRS). b. An operating budget specific to the proposed program, project, or activity. c. A financial statement that shows actual total revenue and expenditures for the most recently completed 12-month period. d. A roster of the organization's current Board of Directors. Submit the completed application electronically to laura,skustdrick@deschutes,org no later than 5:00 p.m. on June 8, 2022. Late or incomplete applications will not be considered. Information or materials submitted instead of or in addition to those specifically requested in this application form will not be reviewed. Contact Information Organization Name fiG>>)62 i1 e Address (r 1% 761 Si? f C ,1 fro / O/' ) City Beviol Zip Code 1 7< 'I Phone Number 5 / _ .3780 Alternate Phone Number 5 4/ 3 35 37 Fax Number Email Address b (<y @ h ico Website li-%'ce,447, hscc . o By signing below, 1 certify the following: 1. All information provided to Deschutes County in this application is correct. 2. I am authorized by the governing board of the stated organization to submit this grant application. 3. This organization is in good standing with the IRS and retains its official 501(c)(3) tax-exempt status. 4. This organization is located in Deschutes County. 5. Any proceeds from a grant award will be used in support of Deschutes County residents. Print Name t Signature Title (_ Date —i O 11 % ) 2 O2 Z On a separate sheet(s), please briefly answer the following questions: 1. Describe the history of your organization. 2. State the mission of your organization. 3. Describe the leadership and structure of your organization. 4. Describe the primary activities conducted by your organization. 5. Describe the specific program, project, or activity that a Spay and Neuter grant would support, if awarded. 6. Describe how this program, project, or activity would positively impact the goal of promoting or expanding spay and neuter procedures. 7. Explain the anticipated outcomes of this program, project, or activity and describe how success will be measured. Attach: 1. Proof of the organization's 501(c)(3) tax-exempt status in the form of a letter from the Internal Revenue Service (IRS). 2. An operating budget specific to the proposed program, project, or activity. 3. A financial statement that shows actual total revenue and expenditures for the most recently completed 12-month period. 4. A roster of the organization's current Board of Directors. 1 ?0 NAV Pend, „on 9 %i,_) 388 .)(lrni lies IT 1C Humane Society of Central Oregon — 2022 Spay and Neuter Grant Organization History The Humane Society of Central Oregon (HSCO) began as the Deschutes County Humane Society in 1961, as an all -volunteer organization. 2022 marks our 61st year of service to the county. In 1978, our former shelter was built by volunteers to be a temporary 10-year facility. The administration area was added on in 1983 thanks to a bequest. The crematory was a necessary addition in 1994. Our current shelter was built in 2005 and encompasses more than 11,750 square feet. The original shelter was torn down to make room for our play yard. In 2015, HSCO expanded and enhanced our cattery, creating additional space and more comfort for the cats and kittens while they wait to find their forever homes. We immediately saw a reduction in the time cats were at the shelter before being adopted, and an improvement in their playfulness and sociability. We expanded the availability pet food to seven human food banks and homeless camps in the tri-county area in addition to shelter distribution. Additionally HSCO is exploring ways to create specialty clinics in outlying communities for companion animals of people in need. Today HSCO serves 2,500 animals annually. Between the shelter facilities and the thrift store in Bend, HSCO has more than 50 employees and generates substantial economic activity in Deschutes County. Mission Our mission is to strengthen the human -animal bond by advocating and compassionately caring for pets and their people. Leadership, Structure, and Board Sabrina Slusser has been the CEO of the Humane Society of Central Oregon since March 2011 and has extensive experience in non-profit management. The management team consists of a Chief Veterinary Officer, Finance & Administration Director, Operations Director, Shelter Manager, Outreach Manager, Development Director, Volunteer Manager, Thrift Store Manager, and Foster Program Manager. HSCO has a strong and active board, with a good mix of backgrounds and skills. They all have a love for animals and an interest in furthering the mission and good work of HSCO. Primary Activities HSCO serves companion animals and residents of Deschutes County by: o Providing physical, medical, and behavioral care for thousands of abandoned, neglected and abused companion animals each year. o Adopting companion animals into loving, responsible homes. o Providing a lost and found reporting program. o Reuniting missing pets with their people. o Community Cat Program: providing vaccinations and spay/neuter surgery to reduce feral and free -roaming cat overpopulation. o Serving as the Deschutes County Sherriff's and the City of Bend Police Dept. safe, stray pet holding and care facility. o Serving as a dog licensing and renewal site. County cat ID tags available. o Providing a Spay/Neuter Assistance Program for low-income families. o Providing a pet food assistance program to pet owners in need. In 2021 HOPE helped families and pets by distributing more than 15,000 pounds of food through community partnerships, and helped over 727 families who came through our doors. o Offering humane education programs to schools, organizations and at community events. o Offering volunteer opportunities for adults, organizations, and community service youth programs. o Providing full service private cremation of companion animals. o Serving as a community service program for court mandated adult programs. Specific Program or Project that Grant will Support The Humane Society of Central Oregon's Community Cat Program spays or neuters hundreds of community cats every year, thereby reducing cat overpopulation by the thousands in Deschutes County. With the help of our community cat trapping volunteers HSCO is able to spay or neuter, vaccinate and return community cats to their outdoor home within 24 hours. The Humane Society of Central Oregon (HSCO) is one of very few animal welfare organizations providing community cat sterilization in Central Oregon. HSCO typically performs at least twice monthly full -day clinics to alter, vaccinate, ear tip and perform minor medical care for community cats. Each full -day clinic typically offers care for up to 20 cats. We additionally see 1-3 community cats for this same service on varying days, as needed, for the volunteer trappers and for our invested community members. Our community cat care is extremely beneficial to Central Oregon in reducing the number of unsupported and/or unhealthy kittens, reducing the burden of community cats on our wildlife, and reducing risk of disease, improving health for the individual cat and supporting our community members that love and care for these cats. This comes at an expense to HSCO. Each community cat surgery costs $52 on average for supplies and staff time. Vaccination for the cats adds an additional $4 per cat. When averaging 40 cats per month, the total cost to HSCO monthly is $2240. Positive Impact on Goal of Promoting or Expanding Spay and Neuter Services Additional funding will enable HSCO to perform critical Community Cat spay and neuter services in Deschutes County. An allocation of $3,000 would allow us to alter and vaccinate 54 community cats — providing almost 1 %2 months of consistent support for our community. The average litter size for a cat is 3-5 kittens. This grant will help us perform surgeries for 54 cats, reducing the number of unsupported kittens that will need care, services and homes. We hope that this concerted effort will reduce the number of future litters in community cats in Deschutes County. Anticipated Outcomes and Measurement of Success We anticipate being able to alter approximately 300 cats in the remaining seven months of 2022. A total count of surgical procedures will be recorded in our shelter software. Any additional medical support provided to these animals would be covered by HSCO's grant and fundraising capabilities. This program is well -established and welcomed in the community; funding through this grant will ensure 54 community cats are altered and unable to produce unsupported litters. Operational budget specific to community cat spay and neuter clinics Cost to spay or neuter and vaccinate one community cat $56 each Grant request $3,000 $3,000/$56 = 54 altered community cats JAN-30-2001 09:49 , .intexl Revenue Service PIamiig Cc Spcclzl Coordination Staff EIVE I::v!ezn. • 6111T °P.04t2333. itosAligep4, CA 80053 238O 0 61 BE P.02 EP/ED Disclosure Desk P.O. Box 2350 Los Ange 1 es , CA 90053 Person to Contact: Felicia C. Miraflor ANE SOCIETY OF CENTRAL Telephone Number: GON $PCA (213) 8 94-4292 70 SE 27TH ST Refer Reply to: D, OR. 97702 R9-833 Date: !AAR 9 1 1989 RE: 93-0610E7 HUMANE SOCIETY OF CENTRAL GREGGN SPCA Gentlemen: Ttfis is in response to your request for a determination 1 tter of the above -named organization. A review of our records indicates that the above -named) Organization was recognized to be exempt from Federal income tax in February 1977, as an organization described in 'Itternal Revenue Code section S01(c)(3). It is further classified as an organization that is not a private fqundaxtion as defined in section S09(a) of the code, because it is an organization described in section 170(b)(1)(A)(vi). Wa are not however, able to provide you with a copy of the eaertiption letter at this time. The determination letter issued on February 1977 continues to be in effect. Iif you are in need of further assistance, please feel free to ontact me at the above address. e appreciate your cooperation in this regard. Sincerely, a&cAa Q' 2 rA,Ov Disclosure Assistant Humane Society of Central Oregon Profit & Loss May 2021 through April 2022 Ordinary Income/Expense Income 4000 • Donation Income 4090 • Grant Income - UnRestricted 4091 • Grant Income - Restricted 4094 • Donations - Direct Mail 4095 • Donations - General 4096 • Donations - Stock 4097 • Donation-TS Roundup 4098 • Donations - Major Gifts 4100 • Donated Materials 4101 • Donated Auto -Lease Income 4900 • Sustainable Donor Pgm Donations 5100 • Donation - Estates Total 4000 • Donation Income 4000.1 • Program Service Revenue 4000.2 • Shelter 4002.2 • Services -Procedures -Cat (SH) 4010 • Adoption Fees 4012 • Boarding Fees 4013 • Boarding -City 4014 • Boarding -County 4021 • Cash/Over/Under 4025 • County Land Contract 4035 • Exam Fee - Clinic Veterinarian 4060 • Cremation Services - Public 4061 • Cremation Services - City 4062 • Cremation Services -County 4065 • Cremation Services - Vets 4066 • License Fees -County 4080 • SNAP Vouchers Sold 4202 • Camp Income 4800 • Onboarding Fees 4999 • Other Income / Shelter Fees 5001 • Cell Tower Revenue Total 4000.2 • Shelter 4000.3 • Sale of Inventory -Shelter 4070 • Pet Supplies/Accessories Total 4000.3 ° Sale of Inventory -Shelter 12:37 PM 05/17/2022 Accrual Basis May '21 - Apr 22 6,700.00 42,349.00 171,745.37 312,725.45 0.00 3,617.64 237,309.68 91,546.20 600.00 110,937.10 14,838.59 992,369.03 0.00 105,318.27 12,347.04 63,420.00 64,632.00 -5.25 17,499.60 348.00 11,749.60 609.40 850.88 91,273.45 33,686.67 10,464.00 5,265.00 3,195.00 16,130.71 42,582.13 479,366.50 6,168.20 6,168.20 Page 1 of 4 4000.4 • Thrift Store 4020 • Cash Over/Under 4195 • Ebay Sales 4196 • Ebay Shipping Income 4199 • Sale of Donated Items 4999.2 • Other Income Total 4000.4 • Thrift Store 4000.5 • BSN 4001.1 • Services -Procedure -Dog 4002.1 • Services -Procedures -Cat (BSN) 4003 • Procedure -Lab 4004 • Services -Vaccination 4005 • Services -Other Wellness 4009.7 • Snap Transfers 4023 • Cash Over/Under 4999.7 • Other Income Total 4000.5 • BSN 4000.6 • Fundraising Income 4113 • Calendar 4200 • Special Events Income 4400 • Cycling Jersey Income 4425 • PupCrawl Event Income 4500 • Tuxes & Tails Event Income Total 4000.6 • Fundraising Income Total 4000.1 • Program Service Revenue 49900 • Uncategorized Income 4999.9 • Other Income - PPP Forgiveness 49900 • Uncategorized Income - Other Total 49900 • Uncategorized Income Total Income Gross Profit Expense 6000.1 • Expenses 6000 • Adoption Expenses 6100 • Advertising Expenses 6121 • Auto Repair & Maintenance Exp 6122 • Auto -Fuel & Mileage Reimbursemt 6140 • Bad Debt Expense 6145 • Bank Fees/Credit Card Chg 6147 • PayPal / Ebay Processing Fees 6149 • Ebay Shipping Fees 6161 ° Computer/ Consulting Expense May '21 - Apr 22 124.99 46,814.29 11,014.08 1,075,800.49 22,269.20 1,156,023.05 25,712.00 15,406.00 2,610.00 28,501.00 19,843.56 4,000.00 -0.05 525.00 96,597.51 670.50 20,143.15 55.00 16,683.67 173,222.06 210,774.38 1,948,929.64 347,407.00 0.26 347,407.26 3,288,705.93 3,288,705.93 5,734.13 15,500.04 2,898.48 5,080.11 1,476.00 40,123.37 4,462.63 11,048.43 15,811.15 Page 2 of 4 6163 • Consulting & Tax Preparation 6166 • Copier Expense 6255 • Crematorium Expense 6319 • Depreciation Expense 6321 • Donated Materials Expense 6322 • Donated Auto -Lease Expense 6360 • Dues & Subscriptions 6385 • Education/Training 6470 • Equipment Rental Expense 6481 • Insurance Expense 6520 • Mortgage Interest Expense 6540 • Uniforms - Employee 6560 • Outside Services (Legal,Other) 6580 ° Licenses & Fees 6583 • Materials for Resale 6585 • Materials & Supplies Expense 6590 • Clinic -Vaccine Expenses 6591 • Clinic - Tests 6592 • Clinic -Medication Expense 6593 • Clinic - Surgery Supplies 6594 • Clinic - Supplies 6595 • Miscellaneous Expenses 6596 • Camp Expenses 6597 • MicroChip Clinic Expense 6600 •Office Supplies Expenses 6686 • Payroll Wages 6687 • Payroll Taxes 6688 • Worker's Comp 6689 • Employee Benefits 6690 • IRA Match 6692 • Employee Bonus 6693 • Payroll Fees 6694 • Staff Appreciation Expense 6701 • Postage Expense 6702 • Printing Expenses 6750 • Rent Expense 6775 • Property Tax 6800 • Repairs & Maintenance 6820 • Security Monitoring Expenses 6825 • Storage Units Expense 6826 • SNAP Reimbursement 6835 • Major Gifts Exp May '21- Apr 22 4,517.97 5,082.98 22,070.96 119,776.82 91,546.20 600.00 34,287.19 8,478.37 542.25 45,477.53 6,600.75 506.38 59,554.69 8,886.01 4,204.04 51,974.99 16,921.04 29,183.44 11,573.13 25,170.05 9,979.30 3,285.35 248.69 3,018.91 3,156.72 1,781,509.43 156,949.94 7,298.40 138,303.04 33,024.93 24,940.14 7,732.68 3,902.33 1,635.50 3,024.22 19,631.61 3,158.34 40,356.08 2,238.46 915.30 16,970.00 2,245.65 Page 3 of 4 6841 • Direct Mailing Expense 6842 • Clinic Equipment 6844 • Travel / Lodging Expense 6847 • Board Related Expenses 6848 • Vet Reimbursement 6850 • Volunteer Appreciation Expenses 6860 • Telephone & Internet Expenses 6900 • Electricity Expense 6901 • Garbage Expenses 6902 • Natural Gas Expense 6903 • Water / Sewer Expenses 6906 • Web Work 6949 • Ebay Expenses Total 6000.1 • Expenses 6000.2 ° Fundraising Expenses 6425 • PupCrawl Event Expenses 6500 • Tuxes & Tails Event Expenses Total 6000.2 • Fundraising Expenses Total Expense Net Ordinary Income Other Income/ Expense Other Income 5000 • Capital Campaign 5002 • Daisy Fund 5005 • Reinvested Dividends 5010 • Interest Income 5015 • Realized Gain(Loss) 5020 • UnRealized Gain (Loss) Total Other Income Other Expense 5148 • Brokerage Fees - Investments 5800 • Loss on Disposed Assets Total Other Expense Net Other Income Net Income May '21- Apr 22 80,811.28 8,951.00 78.00 1,476.45 3,403.72 1,279.33 20,447.82 34,620.78 9,765.65 42,206.98 10,772.08 3,325.00 267.26 3,130,019.50 2,805.56 27,432.09 30,237.65 3,160,257.15 128,448.78 83,000.00 87,603.83 137,860.55 1,555.15 25,396.34 -221,685.99 113,729.88 22,734.14 21,190.86 43,925.00 69,804.88 198,253.66 Page 4 of 4 HSCO Board mfDirectors June, 2022 Name Marla Hacker Joey Drucker Ken Betschart MarV8iehn Matthew 5chiffman Tara Duncan Mario Rique|noe @arbCartno8U Mike Flynn Emily Brick Grant Schultz Michael Hancock Ross Lundnnon Micky Kramer Louise Shirley Board Role President Vice President Treasurer Secretary Board Member Board Member Board Member Vice President Board Member Board Member Board Member Board Member Board Member Board Member Board member a H�C{] k e Pbi|nunPe, I �l No Qoud� or vervicc` y,ee pmv�ded �n exchanQe [or �h|` m0ns1u,y dona/ionH��U Tax |D� A306(6957 61170 SE 27mSt— Bend C)R97702 -- 541.382.3537 -- w/vvvv.h��l��� Tozether, Hand and Paw, Chaaging Lives BOARD OF COMMISSIONERS SPAY & NEUTER GRANT PROGRAM Organization: The Rawley Project Project: FlXbend offered through Companion Pet Clinic offers low cost spay/neuter, vaccination and microchip clinic, with the option to apply for FIXFunds for those experiencing hareshins. Estimated impact/cost: Feline surgery cost averages $85, canine surgery costs averages S150. Deschutes County grant funds would be used to cover FIXFuncs, reducing the cost to 520-30 per surgery. Dog Board 2022 funding recommendation: $2,260 S&N Grants awarded in past five years: None DocuSign Envelope ID: 93202B53-DF5D-464E-8B43-B18F84F58B17 Deschutes County Spay and Neuter Grant Application 2022 A complete application will consist of the following: 1. This cover sheet, signed and dated. 2. Narrative responses to the questions which appear at the end of this document submitted on no more than three separate, single -sided, single-spaced pages. 3. Attachments as follows: a. Proof of the organization's 501(c)(3) tax-exempt status in the form of a letter from the Internal Revenue Service (IRS). b. An operating budget specific to the proposed program, project, or activity. c. A financial statement that shows actual total revenue and expenditures for the most recently completed 12-month period. d. A roster of the organization's current Board of Directors. Submit the completed application electronically to Iaura.skundrick@ deschutes.org no later than 5:00 p.m. on June 8, 2022. Late or incomplete applications will not be considered. Information or materials submitted instead of or in addition to those specifically requested in this application form will not be reviewed. Contact Information Organization Name The Rawley Project / Fzxbend Address 21337 Pel i can Dr. City Bend Phone Number 619-607-1163 Zip Code 97701 Alternate Phone Number Fax Number Email Address amanda@therawleyproject.org Website therawleyproject.org/fixbend DocuSign Envelope ID: 93202B53-DF5D-464E-8B43-B18F84F58B17 By signing below, I certify the following: 1. All information provided to Deschutes County in this application is correct. 2. I am authorized by the governing board of the stated organization to submit this grant application. 3. This organization is in good standing with the IRS and retains its official 501(c)(3) tax-exempt status. 4. This organization is located in Deschutes County. 5. Any proceeds from a grant award will be used in support of Deschutes County residents. Print Name Amanda wheeler Signature -DocuSigned by: `- B 0746AE 680 C0415... Title Executive Director, Founder Date 5/30/2022 On a separate sheet(s), please briefly answer the following questions: 1. Describe the history of your organization. 2. State the mission of your organization. 3. Describe the leadership and structure of your organization. 4. Describe the primary activities conducted by your organization. 5. Describe the specific program, project, or activity that a Spay and Neuter grant would support, if awarded. 6. Describe how this program, project, or activity would positively impact the goal of promoting or expanding spay and neuter procedures. 7. Explain the anticipated outcomes of this program, project, or activity and describe how success will be measured. Attach: 1. Proof of the organization's 501(c)(3) tax-exempt status in the form of a letter from the Internal Revenue Service (IRS). 2. An operating budget specific to the proposed program, project, or activity. 3. A financial statement that shows actual total revenue and expenditures for the most recently completed 12-month period. 4. A roster of the organization's current Board of Directors. 1300 NW Wall Street Bend, Oregon 97703 (541) 388-6565 admin@deschutes.org www.deschutes.org Deschutes County Spay and Neuter Grant Application 2022 for FlXbend Meet Chloe, a sweet and quiet 7 year old charcoal gray poodle mix who had been living with her mom outdoors and at shelters for quite some time. FlXbend was contacted by a caseworker who had been working with Chloe's mom to help her find affordable housing here in Deschutes County. Soon Chloe and her mom would be able to have a place to call home; however, getting Chloe spayed was one of the final requirements in being able to achieve this goal. Since Chloe is older, pre surgical bloodwork was recommended prior to her surgery so along with her caseworker we arranged to have discounted pre -surgical blood work completed to ensure Chloe's safety during surgery. Private veterinary practice pricing was not within reach for Chloe's mom, however because of the low cost services that FlXbend offers, Chloe was able to get spayed, vaccinated and microchipped and her and her mom were able to move into permanent housing. We are so grateful to play a small part in their wonderful new chapter. Our History: FlXbend was created out of pure necessity here in Deschutes County. FlXbend, a program of The Rawley Project, has identified an intense need in our community of Central Oregon due to the indefinite closure of HSCO's Bend Spay Neuter Program. There are currently no low cost spay, neuter, vaccination or wellness options available to the residents of Deschutes County. The animal population is spiking and preventable disease is on the rise due to a lack of accessible care. Prices have increased dramatically in the last 24 months and due to a lack of veterinary professionals in the area most private practices are booked out months in advance and also offer a price point that is out of reach for many residents, especially the low and fixed income segment. 8.1%1 of our county population lives in poverty. With families in the "working poor" category there is an intense need and incredible demand for these services. FlXbend has executed 7 low cost spay, neuter and vaccine clinics in Bend, OR in the last 7 months. These clinics have served over 445 animals and we will continue these clinics monthly. The demand for these services is astounding, we have received over 670 appointment requests in the last 7 months. Our Mission: The Rawley Project is a registered 501(c)3 non-profit animal protection and welfare organization that was created to help dogs that may be suffering from a life of cruelty, neglect and/or abandonment. Additionally, we strive to serve our community by providing protection and refuge for pets with humans in crisis and we work to provide affordable care to reduce the overpopulation of dogs and cats through our sterilization and wellness program, FlXbend. We strive to be transparent, collaborative, inclusive and progressive. We believe that together, we can make a difference. Our Leadership: The Rawley Project and FlXbend is run by Executive Director and Founder, Amanda Wheeler. Amanda has over 5 years of experience in the animal welfare and nonprofit arena and has been a key employee in helping other local nonprofit organizations achieve success. She has served on the Board of Directors for the Humane Society of Central Oregon and has significant business and financial experience gained from being a financial planner with Morgan Stanley for 15 years. Because of her experience, she 1 Data from https://www.census.gov/quickfacts/deschutescountyoregon is able to ensure the financial sustainability and success of the organization. FlXbend is also led by one of the area's most highly regarded veterinary professionals, Dr. Byron Maas, who is the attending physician at each FlXbend clinic. Being one of the founding individuals of the Bend Spay Neuter Program (SNIP) many years ago, Dr. Maas has extensive knowledge providing care in a low-cost, high volume clinic environment. The Rawley Project's Board of Directors consists of Executive Director and Founder, Amanda Wheeler, President of the Board, Melissa Minor and Secretary, Anne Allen. Our Activities: FlXbend is a low cost spay, neuter, vaccination and microchip clinic that is currently being offered monthly in Bend at Companion Pet Clinic Bend. We provide spay and neuter surgeries for dogs and cats along with the following dog and cat vaccinations; Rabies, DHPP, Lepto, Bordetella, Canine Flu, FVRCP and Feline Leukemia. We also offer microchips. We offer additional low cost services in tandem with spay/neuter such as hernia repair or teeth extractions. Additionally we offer a walk-in vaccination and microchip clinic. We are providing these services at a price that is far less than any private practice or nonprofit currently in Deschutes County. Private practices are charging between $300 and $1800 per spay or neuter surgery. We offer surgeries from between $50 and $175. We currently offer a $25 discount to anyone who can show proof of being on government assistance. Attached are two quotes from local private practice veterinarians for a 301b female dog. One is for $1460, the other for $1211. This pricing is clearly beyond the reach of the average Deschutes county resident. Our Program: FlXbend works with other local nonprofit organizations such as C.A.M.P (Companion Animal Medical Project) and Furry Friends. In June we plan to offer 10 FREE surgeries to C.A.M.P pets. This is the first time we have been able to offer free surgeries but we cannot afford to continue to do so without this award. In addition to offering free or deeply discounted services to these organizations we would like to start a voucher program for community members in severe need called "FIXFunds." Those experiencing extreme hardship can apply for a portion of the cost of their spay/neuter, vaccines and microchip to be covered by "FIXFunds" by submitting an application to be reviewed by our selection committee. The application would include income and financial data along with a personal statement as to why the service is needed. If they are selected they would receive a "FixFunds" voucher for the animals in their household needing spay, neuter, vaccines and microchips along with an appointment at one of our clinics. We would use this award money to fund the "FIXFunds" voucher program. • A $10,000 award would cover approximately 114 surgeries for Deschutes county residents. See attached budget breakdown. There is no other agency or organization in Deschutes county, at this time, directly providing these low cost services to the public and that includes our local humane society. This award will give us the ability to provide discounted or free services to our partner organizations and will also provide vouchers to residents experiencing extreme hardship. Our Impact: Low and fixed income folks are who we like to serve however our clinics are open to the public and anyone can utilize our services. We currently offer discounts to those on government assistance and as mentioned above, we partner with C.A.M.P to reach the unhoused population and Furry Friends to reach low income and unhoused folks in Sisters. Residents are able to access affordable care, which without this program they cannot otherwise afford. The more people and pets we can help the more positively we can impact the community. Being able to provide affordable spay/neuter, vaccines and microchips to our community will only positively affect both our two and four legged residents. Our Outcome: This award will enable us to provide free or discounted services to C.A.M.P and Furry Friends and other community members in desperate need. We have a motivated team of volunteers and professionals already successfully executing monthly clinics. With plans to continue 1 weekend clinic a month, a conservative 75 animals monthly could be sterilized with the continuation of this program, which is 900 animals annually that would no longer be contributing to the excessive stray and pet population in Bend and Deschutes county. That doesn't include those taking advantage of our walk-in vaccine and microchip days. We track by spreadsheet the participants at each clinic by individual and organization and can provide numbers served. Every $1 spent on spay, neuter & preventing pet overpopulation saves municipal governments $3 in animal control costs. FlXbend's partnership with Deschutes County is a win -win for the community. Our Statistics: • 448 surgeries performed. • 540 vaccines given. • 180 discounts given to folks on government assistance. • 679 appointment requests. From the community: "Thank you Thank You Thank You!!!! I think this service you provide is amazing. I will continue to donate when I am back on my feet so others may benefit!"-FlXbend Pet Parent. Please watch our short video about what we bring to our community. Thank you for your time and consideration. https://youtu.be/1aMQkhKWdPI Amanda Wheeler Founder & Executive Director The Rawley Project Statement of Activity - FIXBend May 2021 - April 2022 Total Revenue 3000 Donations, grants & support 3200 Restricted Donations 3203 FIXBend Spay & Neuter 28,772.00 Total 3200 Restricted Donations $ 28,772.00 3600 Program Service Revenue 3610 FIXBend Program Revenues 17,889.10 Total 3600 Program Service Revenue $ 17,889.10 Total 3000 Donations, grants & support $ 46,661.10 Total Revenue $ 46,661.10 Cost of Goods Sold 4000 PRG - Program Expenses 4200 PRG - FIXBend Spay & Neuter 4,783.22 4205 PRG - Supplies 5,909.47 4210 PRG - Vet Care 10,248.03 4220 PRG - Location Fees 2,031.23 Total 4200 PRG - FIXBend Spay & Neuter $ 22,971.95 Total 4000 PRG - Program Expenses $ 22,971.95 Total Cost of Goods Sold $ 22,971.95 Program Net Revenue $ 23,689.15 Tuesday, May 17, 2022 03:23:30 PM GMT-7 - Accrual Basis With a $10,000 award from Deschutes County, 114 intact pets will be sterilized. Current Current FlXbend FlXbend Price w/proof of Price Gov't assistance Feline Spay $95 $70 Feline Neuter $75 $50 Canine Spay > 80Ibs $150 $125 Canine Spay < 80Ibs $175 $150 Canine Neuter > 80Ibs $125 $100 Canine Neuter < 80Ibs $150 $125 Proposed cost to public FixFunds w/FixFunds used to Award subsizide $20 $50 $20 $30 $30 $96 $30 $120 $30 $70 $30 $155 87 Average amount of FixFunds used per surgery $10,000 Award from Deschutes County 10,000/87 Approx 114 in need animals will be spayed and neutered. Redmond Veterinary Clinic www,redmondvetclinic,corn Drs. Nitscrtelm, Ctark. Terry & Neely 1785 NW Oth St Redmond, OR 97756-1299 (541) 548-1048 Madras. OR 97741 Patient ID_ 57912 Pabent Name Species. CANINE Breed AUSStE MINI T Weight. 14 00 pounds Birthday 10 16 2020 Client ID, Estimate ID: Evoiration I 119!2021 Page 1 12 29247 53795 Description Staff Name Low Q1 Amount High Qty. High Amount 112021 ESTIMATE ALTER CLIENT 1.00 $0.00 1.00 $0. 041 11.9i'2021 BRIEF PRESURGICAL EXAMINATION 1.0D $0.00 1_00 50.00 1/ i 9,-202 I PRESURGICAL BLOOD SCREE.N 1.00 S108.45 1.00 $ t $008s0405 1 1 9i2021 Preanesthetic Sedatar 1.00 50.00 1,00 11:° 11411J9,2021 Preanesthetic Sedation 1.00 532.00 1.00 S44 2021 Antinausea Medicavon 1.00 $0.00 1.00 S 11;912021 Antinausea trqedion 1.00 $4,10 I 00514.35:° 1 1,'9.2021 Antontlammatory Irneoloon 1.00 50.00 100 S°°C1 11 9.,2021 Arrirn minflaatory Iriecti52.21 on 1.001.00 57.74' 11/9;2021 Ampicn Injectable 1.00 S I . D3 5147.50 1.00 $2 06 I 1F9,2021 IV CATHETERIZATION I .00 1 00 5147.50 1 t S2021 IV Catheter 1.00 $3.25 1,00 $&g") 11,912021 Male Adapter Hug 1.00 53.85 1.00 S3.85 11.92021 Venoset regular i 15 drops) 1,00 51°,°1 00 $13.13 5146 1142021 Phytyte Injection ph 7.4 11_ 17 Bag 1.00 1,00 547 46 I 1912021 Induction Agent 1.00 50.00 1..00 S 11,912021 InductnioAgent 1.00 $6.00 1.00 s$s2765:„:501:5 1119,2021 Avagard Surgicat Hand SantE.7j ing 1,00 $5.00 1.00 11;9,2021 Surgical Mask 1.00 $2.15 1.00 I I '9:2021 Surgical Cap,s`f 1.00. $0,36 100 50.72 11,,912021 Surgical glove 7 1.00 $3.15 1.00 $. 11/912021 Surgical gown XL 1.00 534.75 1,00 $34974: 1142021 Small Surgical Kit 1.00 533.50 1 00 $50_25 11'9,2021 Scalpel Blade Ati 0 1.00 51 50 1.00 52.25 11 (2,i`2021 SMALL DOG 5413.00 SPAY 1.00 1.00 119;2021 ENDO-SCOPIC INSTRUMENT USE FEE 1.00 $274.00 1.00 S413.00 5328.80 11;9:2021 TRANOUALIZAT ION REVERSAL 000 $0,01) 1.00 557.15 I 19,2021 LASER THERAPY DM 50.00 1,00 $58.00 II ,c1.,2021 NAIL TRIM COURTESY 1.00 50.00 1.00 S0.00 I litiQ021 COURTESY EAR EXAM 1.00 $0.00 1.00 50..0 1119,2021 Analgesics 1.00 $50,00 1,00 1133,21:Y21 COURTESY HOSPITALIZATION I 00 trim 1.00 50.00 000. 11a2021 Surgical Site Protedion 1.00 $16.00 1.00 $40.00 Low Subtotal. $1,169.36 High Subtotal. 51.460 36 Low Total: S1.169.36 High Total: S1,460.36 Y CLINIC 1689SWHwy97 Madras, OR 97741-9262 (541)475-7226 Diagnostic and Treatment Plan: OHE - K9 adult, medium Home/Primary Phone: ( ) - Work Phone: ( ) - ext: Species Cantu(' Sex: Fonfile. Age: I year old Breed: Mini-Awisic C081 COlor: (Nom) Rabies Tag Number: Nov 1012021 Treatment Plan 7240 liordcwIla Vnecination: Distempel -.Par vo-A2P Combo Vat:c: Flu v.itciu, caflinc: I leartwonn Test (ELISA)., Annoul; Intestinal & Il,aii Wonn ined Vliceination: Code Description 5051 Presurgery Exam (included) 7007 Draw Blood Sample 2125 Nall Trim W/ Other Service 2137 Ear Exam Wi Other Services 2075 Injection Fee(s) 8283 Torbugeslc 10mg/mL 2008 Hosp/cage Fee: Courtesy 2090 IV CatheterizationlHosp. 209/ IV Fluid Therapy 1st Liter 2079 Microchip Implanting & Registration 9969 Meloxicam Injectable/mL 7035 Bloodwork: Cell Count/ 6-chemistries 5020 Ovarlohysterectomy: Med Canine 5050 Surgeon Time - gastropexy 4080 Gas Anesth.: Addl gastropexy 2070 Injections w/ Hosp Cerenia, pexy 3372 Cerenia 16mgMtabs - pexy 3374 Cerenia Inj/cc gastropexy 1137 Meloxicam tablets T.5mg 3420 Rabies Vaccine 1-Year (canine) 1000 CiA2LP-Parvo-Corona Vacc.Annual 3884 Kennel Cough Vx, K-9 ORAL 1(j58A Flu vaccine 1 of 2, canine Dr Steven Nttsclullnit Low Qty High QtV 1,00 1_00 0.00 1.00 1.00 1.00. 1.00 1.00 1.00 2.00 0 30 0.30 1,00 1 00 0.00 1.00 0.00 1 OD 0 00 1 00 0.00 1 10 0,00 1.00 1.00 1.00 0.00 20.00 0.00 20.00 0.00 1.00 0.00 1.00 0 00 2.00 10.00 10.00 1 00 2.00 1,00 2.00 1.00 2.00 1 J Total for Dolly: Low Price High Price 0.00 $ 0.00 $ 0.00 $ 11.45 0.00 $ 0.00 0.00 $ 0,00 $ 38.65 $ 77.30 8.10 $ 8.10 0.00 $ 0.00 $ 0.00 $ 84.00 0.00 $ 114.00 $ 0.00 $ 50.50 0.00 $ 19.20 0.00 $ 98.00 $ 185.00 $ 185.00 0.00 $ 166.00 0.00 $ 37.80 $ 0.00 $ 15.80 0.00 $ 52,25 0.00 $ 30.94 $ 14.50 $ 14.50 $ 26.75 $ 53.50 $ 39.30 $ 78.60 $ 36.50 $ 73.00 $ 42.00 $ 42,00 $ 390.80 $ 1,211.94 Total Invoice: $ 390.80 $ 1,211.94 The Rawlev Project Board of Directors President: Melissa Minor Secretary: Anne Allan Director: Amanda Wheeler mminor99@hotmail.com sunshineanne22@gmail.com amanda@therawleyproject.org Department of the Treasury Internal Revenue Service Tax Exempt and Government Entities Iss P.O. Box 2508 Cincinnati, OH 45201 THE RAWLEY PROJECT CIO AMANDA WHEELER 21337 PELICAN DR BEND, OR 97701 Date: 07/19/2021 Employer ID number: 86-2306556 Person to contact: Name: Customer Service ID number: 31954 Telephone: 877-829-5500 Accounting period ending: December 31 Public charity status: 509(a)(2) Form 990 / 990-EZ / 990-N required: Yes Effective date of exemption: February 26, 2021 Contribution deductibility: Yes Addendum applies: No DLN: 26053484003131 Dear Applicant: We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). Donors can deduct contributions they make to'ypu under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records. Organizations exempt under IRC Section 501(c)(3) are further classified as either public charities or private foundations. We determined you're a public charity under the IRC Section listed at the top of this letter. If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard). If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements. Sincerely, Stephen A. Martin Director, Exempt Organizations Rulings and Agreements Letter 947 (Rev. 2-2020) Catalog Number 35152P Recommendation N N m N m N N d dN' N o N N 0 O Project Description Coordinate s/n services through monthly clinics, which currently provide wellness exams, immunizations, and preventative care. Each rabbit is s/n prior to its adoption, at the only rabbit sanctuary in Central Oregon. Sponsor and promote 'The Fix is FREE Program" s/n procedures; educating around benefits of s/n, and facilitating s/n or feral cats in Sisters. Community Cat Program averages s/n for 40 cats/month, reducing the number of unsupported and/or unhealthy kittens in community. Monthly cost to HSCO is $2,240. FlXbend offered through Companion Pet Clinic offers low cost s/n, vaccination and microchip clinic. Funding focus Companion animals of people experiencing houselessness or significant financial distress Rabbits in Sanctuary's custody Dogs and cats of families in financial hardship Cats within Central Oregon Dogs and cats for people experiencing hardships. Also provides services for groups such as CAMP and Furry Friends Location Bend, with clinics around in Bend and Redmond c 0 E -0 r Sisters; honors requests for s/n sponsorship for clients living in Bend, Redmond and La Pine areas -0 c m -0 c m Organization Companion Animal Medical Project (CAMP) Ember's Wildflower Animal Sanctuary Furry Friends Foundation Humane Society of Central Oregon The Rawley Project Total