2023-342-Minutes for Meeting October 11,2023 Recorded 10/30/2023Q\3eo s Es G2{
BOARD OF
COMMISSIONERS
1300 NW Wall Street, Bend, Oregon
(541) 388-6570
Recorded in Deschutes County
Steve Dennison, County Clerk
Commissioners' Journal
2023-342
BOCC MEETING MINUTES
9:00 AM WEDNESDAY October 11, 2023
CJ2023-342
10/30/2023 1:01:47 PM
Barnes Sawyer Rooms
Live Streamed Video
Present were Commissioners Tony DeBone, Patti Adair and Phil Chang. Also present were
County Administrator Nick Lelack; Assistant County Counsel Kim Riley; and BOCC Executive Assistant
Brenda Fritsvold.
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 DeBone called the meeting to order at 9:00 a.m.
PLEDGE OF ALLEGIANCE
CITIZEN INPUT: None
CONSENT AGENDA: Before the Board was Consideration of the Consent Agenda.
Approval of Resolution No. 2023-059 extending 1.50 limited duration District
Attorney FTE within the FY 2023-2024 Deschutes County Budget
2. Approval of Resolution No. 2023-057, adding 2.00 FTEs and increasing
appropriations in Health Services and Adult Parole and Probation for use of the
Opioid Settlement funds
3. Approval of Board Order No. 2023-042 appointing Health Services Director's
Designees
BOCC MEETING OCTOBER 11, 2023 PAGE 1 OF 7
4. Approval of a lease with Mosaic Medical to operate a School -Based Health Center
at the Sisters Clinic
5. Approval of Chair signature of Document No. 2023-069, a Notice of Intent to
Award a contract for the Gribbling Road Bridge #17C30 Replacement Project
6. Consideration of Board signature on letters reappointing Andrew Aasen, Dustin
Miller and Hunter Neubauer for service on the Deschutes County Cannabis
Advisory Panel
7. Consideration of Board signature on letters reappointing Renee Alexander, Mark
Kelley, Jerry Milstead, Kent Vander Kamp, Mark Kneeshaw and Jim Starnes for
service on the Deschutes County Facility Project Review Committee
8. Consideration of Board signature on letter of thanks to David Quiros for his
service on the Deschutes County Facility Project Review Committee
9. Consideration of Board signature on letters appointing Greg Brady and Tamara
Kuntz as alternate members on the Dog Control Board of Supervisors
10. Approval of August 30 and September 6, 13 and 18, 2023 BOCC meeting minutes
ADAIR: Move approval of the Consent Agenda as presented
CHANG: Second
VOTE: ADAIR: Yes
CHANG: Yes
DEBONE: Chair votes yes. Motion Carried
ACTION ITEMS:
11. Public Hearing and Board Order considering the annexation of certain
properties totaling approximately 153.61 acres to the Bend Park &
Recreation District
Kim Riley, Assistant Legal Counsel, explained the request to annex eight parcels
to the Bend Park & Recreation District; the parcels are contiguous, together total
approximately 153.61 acres, and are sited in the vicinity of Cooley Road, Loco
Road, Clausen Drive and Crooked Rocks Road.
The public hearing was opened at 9:03 am. There being no one who wished to testify,
the public hearing was closed at 9:03 am.
BOCC MEETING OCTOBER 11, 2023 PAGE 2 OF 7
Commissioner Chang asked for a map showing how the boundary of the Bend
Park & Recreation District compares with Bend's urban growth boundary.
CHANG: Move approval of Board Order No. 2023-036 approving the Pahlisch
Homes annexation of approximately 153.61 acres into the Bend Park
& Recreation District
ADAIR: Second
VOTE: ADAI R: Yes
CHANG: Yes
DEBONE: Chair votes yes. Motion Carried
12. Multiple Unit Property Tax Exemption application for 105 NE Franklin
Avenue
County Administrator Nick Lelack said the Multiple Unit Property Tax Exemption
(MUPTE) program was established by the City of Bend to support development
and redevelopment goals in designated areas. Proposals are presented to the
various taxing districts which may be affected if a property tax exemption is
granted —these include the County, the Deschutes County Sheriff's Office, and
the County's 9-1-1 District.
Cate Schneider, Senior Management Analyst for the City of Bend, shared an
overview of the MUPTE program which grants a property tax exemption to
qualifying multi -story residential projects. Projects must result in three or more
residential units and provide at least three defined public benefits.
Caroline Baggott, Development Manager for Project^ PDX, (via Zoom) reviewed
details of the proposed project at 105 NE Franklin Avenue along with the
proforma and budget showing that the project would not be financially viable
without the property tax exemption. The proposal is for two five -story structures,
one of which would be solely residential (95 rental units) and the other being
mixed -use commercial (5,219 sf) and residential (96 rental units).
Schneider said because this project is within the Core Area Urban Renewable
District, none of the County's taxing districts would experience financial impacts if
the property tax exemption is approved.
Responding to questions from the Commissioners, Baggott said all of the units
will be rentals and none of the parking will be underground.
BOCC MEETING OCTOBER 11, 2023 PAGE 3 OF 7
Commissioner Chang was highly supportive of this project which will add much -
needed housing in a key redevelopment area of Bend.
CHANG: Move approval of the application from New Zone Business, LLC
for a Multiple Unit Property Tax Exemption relating to property at
105 NE Franklin Avenue in Bend
ADAIR: Second
VOTE: ADAI R: Yes
CHANG: Yes
DEBONE: Chair votes yes. Motion Carried
13. Update to County Finance Policy No. F-4 Capital Asset Policy
Robert Tintle, Chief Financial Officer, explained the proposal to combine three
County Finance policies F-4, F-5 and F-6 into one policy while updating two
sections to assure appropriate internal controls. One of the updates will clarify
when a budget adjustment or budget resolution is needed while the other
specifies the tracking procedures for capital and non -capital assets.
ADAIR: Move approval of County Administrator signature of revised County
Finance Policy No. F-4, Capital Asset Policy, and rescind policies F-5
and F-6
CHANG: Second
VOTE: ADAIR: Yes
CHANG: Yes
DEBONE: Chair votes yes. Motion Carried
OTHER ITEMS:
• County Administrator Nick Lelack announced the resignation of James Lewis from
the board of the Central Oregon Intergovernmental Council (COIC); staff will initiate
a recruitment process for this County -appointed position as a community
representative for tourism and recreation interests.
Commissioner Chang commented on the importance of affordable housing in terms
of maintaining a workforce and suggested reaching out to Visit Central Oregon and
Visit Bend to alert them to this vacancy.
Kristie Bollinger, Property Manager, distributed a draft letter of support for COIC's
application for a $25,000 technical assistance grant from the Department of Land
Conservation and Development; the grant would be used to seek a Goal 3 exception
for 75 acres of the 300-acre CORE3 project in Redmond.
BOCC MEETING OCTOBER 11, 2023 PAGE 4 OF 7
Lelack said if awarded, this grant would not compete or conflict with any grants
sought by the County.
CHANG: Move approval of a letter of support for COIC's application for a
technical assistance grant from DLCD for the CORE3 project
ADAIR: Second
VOTE: ADAIR: Yes
CHANG: Yes
DEBONE: Chair votes yes. Motion Carried
Lelack asked if the Board supports signing a draft letter to Representatives Ken
Helm and Mark Owens regarding state groundwater allocation rules, noting it's
proposed that the letter be signed by Central Oregon mayors and county
commissioners.
Adding that this letter came forward at Doug Riggs' request, Commissioner DeBone
asked if the County has a position on this subject.
Saying he has been tracking this matter fairly closely, Commissioner Chang was not
comfortable signing the letter as drafted. He did not believe that all cities in Central
Oregon are 100% aligned on this and said he could either write and submit a
separate letter on his own, or draft a letter for the County to submit in conjunction
with the joint water caucus.
Commissioner Chang added that the County has heard from hundreds of people
whose wells have gone dry, and it is not known whether a few more feet of
groundwater level decline would result in tens, hundreds, or thousands more wells
drying up. He said while the draft letter addresses efforts to preserve and restore
surface water volumes, groundwater levels have declined by one foot per year over
the last 20 years. He objected that the letter does not address the need to slow, stop
or reverse the decline of groundwater levels, said this would require conservation
efforts across the entire spectrum of groundwater users, and stated his support for
a comprehensive approach that considers existing groundwater permits as well as
new ones.
Discussion ensued regarding domestic and agricultural water use and the need to
prioritize municipal water systems such as the City of Redmond's; the effects of
reduced precipitation, which is needed to recharge groundwater levels; the risk of
allowing the most water -inefficient households to operate exempt wells while
restricting others; not wanting existing exempt wells to go dry; whether the
BOCC MEETING OCTOBER 11, 2023 PAGE 5 OF 7
rulemaking will curb exempt well permits; and the fact that advances in technology
allow people to have much deeper wells than before.
Commissioner Adair asked what the County can do to help Redmond meet its
municipal water needs. She agreed it is very expensive to re -drill and maintain wells
and said sediment can fill in wells over time such that they have to be re -drilled after
30 or so years.
Commissioner Chang said the State's Water Resources Department has been issuing
new permits for years without verifying whether or not water was available to fulfill
each proposed use. Commissioner DeBone said while these permits may be
overallocated, they are now constrained such that water rights can only be
transferred, not created.
Chair DeBone concluded that the Board will not take action on the draft letter as
presented at this time.
Lelack announced two groundbreaking events next Monday for affordable housing
projects: the Housing Works and RooteclHomes groundbreaking on Simpson
Avenue in Bend and the Housing Works groundbreaking at the Cleveland Commons
project, also in Bend.
Commissioner DeBone reported on a roundtable hosted by AOC regarding Measure
110 at which the subject of adult drug treatment courts was discussed. He
supported drafting a letter to communicate to the State the effects which Measure
110 has had on Deschutes County and asking that the Legislature make needed
changes. Commissioner Adair agreed this would be appropriate.
Commissioner Chang agreed that Deschutes County needs resources to re-establish
a drug treatment court as this type of program helps move people out of addiction.
He said the Board should receive a presentation to learn how BHRN funds are being
spent and what they are accomplishing.
Commissioner Adair reported that she toured the Ideal Options facility in Bend
which receives BHRN funds and allows law enforcement personnel to refer anyone
who is willing to receive treatment.
Commissioner DeBone shared that he and Commissioner Adair attended the
Redmond Patriots meeting on Monday, and he and Commissioner Chang both
attended last night's Newberry Regional Partnership event.
Commissioner DeBone said he will attend a roundtable on the North Unit Irrigation
District Resiliency Project later today.
BOCC MEETING OCTOBER 11, 2023 PAGE 6 OF 7
• Commissioner Chang reported that Senator Wyden visited Bend High School to
learn about the Healthy Schools Partnership and talk with youth about behavioral
health and mental health needs of students.
EXECUTIVE SESSION:
At 10:38 am, the Board moved into Executive Session under ORS 192.660 (2) (h) Litigation.
The Board moved out of executive session at 11:20 a.m. to direct staff to proceed as directed. A
break was taken.
At 11:40 am, the Board went into Executive Session under ORS 192.660 (2) (i) for an
employee evaluation.
The Board moved out of executive session at 12:10 p.m. with no action taken.
M 1119! 1
Being no further items to come before the Board, the meeting was adjourned at 12:10 pm.
DATED this ' day of
Commissioners.
ATTEST:
-,6 0
RECORDING SECRETARY
2023 for the Deschutes County Board of
ANTHONY•
PHIL CHANG, C MMISSIONER
BOCC MEETING OCTOBER 11, 2023 PAGE 7 OF 7
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BOARD OF
COMMISSIONERS
BOARD OF COUNTY COMMISSIONERS MEETING
9:00 AM, WEDNESDAY, OCTOBER 11, 2023
Barnes Sawyer Rooms - Deschutes Services Building - 1300 NW Wall Street - Bend
(541) 388-6570 1 www.deschutes.org
MEETING FORMAT: In accordance with Oregon state law, this meeting is open to the public and
can be accessed and attended in person or remotely, with the exception of any executive session.
Members of the public may view the meeting in real time via YouTube using this link:
http://bit.ly/3mminzy. To view the meeting via Zoom, see below.
Citizen Input: The public may comment on any topic that is not on the current agenda.
Alternatively, comments may be submitted on any topic at any time by emailing
citizeninput@deschutes.org or leaving a voice message at 541-385-1734.
When in -person comment from the public is allowed at the meeting, public comment will also be
allowed via computer, phone or other virtual means.
Zoom Meeting Information: This meeting may be accessed via Zoom using a phone or computer.
• To join the meeting via Zoom from a computer, use this link: http://bit.ly/3h3ogdD.
• To join by phone, call 253-215-8782 and enter webinar ID # 899 4635 9970 followed by the
passcode 013510.
• If joining by a browser, use the raise hand icon to indicate you would like to provide public
comment, if and when allowed. If using a phone, press *6 to indicate you would like to speak and
*9 to unmute yourself when you are called on.
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, call (541) 388-6572 or
email brenda.fritsvold@deschutes.org.
Time estimates: The times listed on agenda items are estimates only. Generally, items will be heard in
sequential order and items, including public hearings, may be heard before or after their listed times.
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.
CONSENT AGENDA
1. Approval of Resolution No. 2023-059 extending 1.50 limited duration District Attorney
FTE within the FY 2023-2024 Deschutes County Budget
2. Approval of Resolution No. 2023-057, adding 2.00 FTEs and increasing appropriations in
Health Services and Adult Parole and Probation for use of the Opioid Settlement funds
3. Approval of Board Order No. 2023-042 appointing Health Services Director's Designees
4. Approval of a lease with Mosaic Medical to operate a School -Based Health Center at the
Sisters Clinic
5. Approval of Chair signature of Document No. 2023-069, a Notice of Intent to Award a
contract for the Gribbling Road Bridge #17C30 Replacement Project
6. Consideration of Board signature on letters reappointing Andrew Aasen, Dustin Miller
and Hunter Neubauer for service on the Deschutes County Cannabis Advisory Panel
7. Consideration of Board signature on letters reappointing Renee Alexander, Mark Kelley,
Jerry Milstead, Kent Vander Kamp, Mark Kneeshaw and Jim Starnes for service on the
Deschutes County Facility Project Review Committee
8. Consideration of Board signature on letter of thanks to David Quiros for his service on
the Deschutes County Facility Project Review Committee
9. Consideration of Board signature on letters appointing Greg Brady and Tamara Kuntz as
alternate members on the Dog Control Board of Supervisors
10. Approval of August 30 and September 6, 13 and 18, 2023 BOCC meeting minutes
October 11, 2023 BOARD OF COUNTY COMMISSIONERS MEETING Page 2 of 3
ACTION ITEMS
11. 9:10 AM Public Hearing and Board Order considering the annexation of certain
properties totaling approximately 153.61 acres to the Bend Park &
Recreation District
12. 9:20 AM Multiple Unit Property Tax Exemption application for 105 NE Franklin Avenue
13. 9:50 AM Update to County Finance Policy No. F-4 Capital Asset Policy
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.
14. Executive Sessions under ORS 192.660 (2) (h) Litigation and ORS 192.660 (2) (i) Employee
Evaluation
ADJOURN
October 11, 2023 BOARD OF COUNTY COMMISSIONERS MEETING Page 3 of 3
MEETING DATE: October 11, 2023
SUBJECT: Multiple Unit Property Tax Exemption application for 105 NE Franklin Avenue
RECOMMENDED MOTION:
Move approval of the application from New Zone Business, LLC for a Multiple Unit Property
Tax Exemption relating to property at 105 NE Franklin Avenue in Bend.
BACKGROUND AND POLICY IMPLICATIONS:
In August 2022, the Bend City Council adopted a Multiple Unit Property Tax Exemption
(MUPTE) program to support development and redevelopment goals in Bend's core and
transit -oriented areas. The program is available for multi -story residential projects in
certain areas of Bend that provide three or more units and provide at least three defined
public benefits.
The New Zone Business project proposes to build two five -story structures, one of which
would be solely residential (95 rental units) and the other being mixed -use commercial
(5,219 sf) and residential (96 rental units). The 199 residential units would consist of 103
studios, 78 one -bedroom units, and 18 two -bedroom units. For this project, the three
public benefits will be:
High Standard of Energy Efficiency/Green Building Features through Earth
Advantage Platinum Certification (Priority Public Benefit)
Enhanced Landscaping- the project will use native and pollinator -friendly plants
Electric Vehicle (EV) Charging Infrastructure- the project will provide 50% of its
total provided parking spaces with EV charging infrastructure. This will result in
60 total onsite spaces that include EV charging infrastructure of the planned 127
surface parking spaces.
According to information submitted by the applicant and reviewed by an independent
financial consultant, this project would not be financially viable without the requested
property tax exemption. In order for this project to qualify for the tax exemption, it must
be approved by the boards which represent at least 51 % of the combined levy of taxing
districts.
More information is available online at:
Multiple Unit Property Tax Exemption Program I City of Bend (bendoregon.gov)
BUDGET IMPACTS:
Because this exemption, if approved, would only affect the Bend Urban Renewal Agency's
Core Area Tax Increment Finance Fund, it would not result in direct budget impacts to any
of Deschutes County's taxing districts.
ATTENDANCE:
Nick Lelack, County Administrator
Cate Schneider, Senior Management Analyst, City of Bend
STAFF REPORT FOR
MULTIPLE UNIT PROPERTY TAX EXEMPTION
PROJECT NUMBER:
CITY COUNCIL DATE:
APPLICANT/
OWNER:
PRTX202303730
December 6, 2023
Project^
Caroline Baggott
1116 NW 17th Avenue
Portland, OR 97209
OWNER: New Zone Business LLC
1116 NW 17th Avenue
Portland, OR 97209
APPLICANT'S
REPRESENTATIVE: n/a
n
LJ
CITY OF BEND
COMMUNITY AND
ECONOMIC DEVELOPMENT
LOCATION: 105 NE Franklin Avenue; Tax Lots 171232DA07900,
171232DA08001, 171232DA08200, 171232DA08400,
171232DD09201,171232DD09700, 171232DD09800,
Between Franklin and Emerson Avenues, the Railroad, and along
NE 1 st Street
REQUEST: Multiple Unit Property Tax Exemption (MUPTE), 10-year tax
abatement on residential improvements
STAFF REVIEWER: Cate Schneider, Senior Management Analyst
RECOMMENATION: Approval
DATE: September 29, 2023
PROJECT & SITE OVERVIEW:
The project site is located at 105 NE Franklin Avenue and is zoned Commercial Limited (CL)
and Mixed Employment (ME) within the Bend Central District Special Planned District. The
project proposes two new five story multi -family structures at the north and south ends of the
site. The north building is proposed to be a mixed -use building with 80,913 gross square feet
that includes 100 rental units and 5,219 square feet of commercial space. The southern building
is proposed as a 75,383 square foot multi -family building with 99 rental units. In total, the
project proposes to build 199 residential units with the following unit mix:
103 studios
• 78 1-bedroom units
• 18 2-bedroom units
(During the site plan review process the applicant slightly modified the unit count. The unit
numbers above are what was in land use application approval and differ slightly from the
MUPTE application materials.)
The three public benefits that the project plans to incorporate, if approved for MUPTE, include:
• High Standard of Energy Efficiency/Green Building Features through Earth Advantage
Platinum Certification (Priority Public Benefit)
• Enhanced Landscaping- the project will use native and pollinator friendly plants
• Electric Vehicle (EV) Charging Infrastructure- the project will provide 50% of its total
provided parking spaces with EV charging infrastructure.
In addition to these public benefits, the project plans to build a public plaza space that will
include trees, landscaping, seating alcoves, benches, and an area for pop-up events that will
account for more than 10% of the site's area as well as enhance NE 1 st Street through the site
with a pedestrian oriented street and provide private amenity space inside the buildings for co -
working, fitness and wellness centers and lounge/gathering spaces.
The property where the project is proposed was formerly the location of the Les Schwab Tire
Center that recently relocated to NE 3rd Street. The site is currently unoccupied.
A Type II Site Plan Review application (PLSPR20230059) was approved on September 13,
2023.
Figure 1. Site Location
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UST
Figure 3. Site Plan
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4
INFRASTRUCUTURE NEEDED TO SERVE THE SITE
The applicant submitted a sewer and water analysis through their application
PRSWA202208184. The City identified preliminary mitigations necessary for this site to be
served with infrastructure that will be finalized based on the final design submittal required by
the land use approval for this site. The applicant received a letter from City of Bend Private
Engineering Division confirming this as part of their application.
ELIGIBILITY CRITERIA
APPLICATION OF THE CRITERIA:
LOCATION/ELIGIBLE ZONE REQUIREMENTS
This project is located within the Core Area Tax Increment Finance Area which is an eligible site
for the MUPTE Program per BMC 12.35.015(D).
MULTI -STORY REQUIREMENTS
Projects on lots that are greater than 10,000 sf are required to be three (3) or more stories in
height to be eligible for the MUPTE Program per BMC 12.35.015(C). The proposed project is
located on a lot larger than 10,000 square feet and is proposing both buildings to be 5 stories
and therefore satisfies this requirement.
HOTELS, MOTELS, SHORT TERM VACATION RENTALS ON SITE
The MUPTE Program requires that projects include a restriction on transient occupancy uses,
including use by any person or group of persons entitled to occupy for rent for a period of less
than 30 consecutive days (including bed and breakfast inns, hotels, motels, and short-term
rentals). If Council approves this project, the applicant will need to demonstrate a restriction of
uses on the property for the period of the exemption satisfactory to the City before staff certifies
the exemption with the County Assessor's office.
DEMONSTRATION OF FINANCIAL NEED
The applicant submitted a proforma income statement both with and without the tax exemption
to demonstrate that the project would not be financially viable but for the property tax
exemption. These proforma were then reviewed by a third party independent financial
consultant hired by the City.
Johnson Economics completed a review of the proformas in July 2023. A summary of their
findings is included as Attachment A. The review confirms that the Platform project is not
financially viable on its own; the assumed returns are below what would be necessary for the
market to develop this project. The analysis demonstrates that even with the MUPTE benefit,
the project is still operating on tight profit margins.
Based on the findings of the financial analysis, the applicant was asked to clarify the basis for
their construction cost assumptions. They provided copies of the cost estimates they received
from three general contractors.
JUSTIFICATION FOR ELIMINATION OF ANY EXISTING HOUSING AND BUSINESSES ON
THE PROJECT SITE
The existing site is vacant and therefore there is no anticipated displacement of housing or
businesses by the project and therefore no mitigation is proposed. This meets the requirements
of the MUPTE Program.
PUBLIC BENEFIT REQUIREMENTS
MUPTE requires that applicants provide three public benefits including one priority public
benefit to qualify for the MUPTE program, per BMC 12.35.025.
Priority Public Benefit
The applicant plans to receive Earth Advantage (EA) Platinum certification for both buildings.
This requires the applicant to incorporate a high level of sustainable, energy efficient and green
building features. The applicant submitted documentation including a preliminary scoring sheet
that demonstrates that they are on track to reach EA Platinum certification. Approval will be
conditioned on future verification of EA Platinum certification.
Additional Public Benefits
In addition to the Priority Public Benefit, the applicant is required to provide two additional public
benefits. The applicant plans to utilize the following benefits to meet those requirements: 1)
Enhanced Landscaping; and 2) Electric Vehicle (EV) Charging.
Enhanced Landscaping: The applicant has submitted preliminary landscaping plans developed
by Szabo Landscape Architecture that are consistent with Chapter 12 of the Bend Code and
Chapter 3.2 of the Bend Development Code. The current plans include no grass areas. Future
approval will be conditioned based on future staff verification that the applicant meets Chapter
12 of Bend Code and Chapter 3.2 of the Bend Development Code as well as the submittal and
approval of a water budget for the site. The City will monitor water use throughout the 10-year
exemption period. The site cannot exceed 20% above the approved water budget during the
exemption period.
Electric Vehicle (EV) Charging: Applicant is required to provide at least 10 percent more parking
spaces with EV charging infrastructure, conduit for future electric vehicle charging stations, than
the minimum required. Currently Oregon Building Codes require that multifamily projects
provide 40% of provided parking spaces with EV charging infrastructure. Therefore, the
applicant is required to provide at least 50% of parking spaces with EV infrastructure. The
applicant plans to provide 117 onsite parking spaces for the north and south buildings;
therefore, 59 of these spaces must be provided with EV charging infrastructure. The applicant
plans to provide 65 parking spaces with EV charging infrastructure.
Figure 4. EV Charging Locations
ESTIMATED EXEMPTION: This project is estimated to receive a total 10-year tax exemption of
approximately $4,400,000 based on an estimated building value of $43,953,675 for only the
residential improvements.
The total estimated tax collection for this project between fiscal years 2027 through 2036 is
estimated to be $5,600,000 without the exemption and $1,200,000 with the exemption. If the
project were to not move forward, total tax collection for the 10-year period of the site would be
approximately $585,000.
The estimated impact of this exemption would only impact the Bend Urban Renewal Agency's
Core Area Tax Increment Finance Fund. The project, if approved for the tax exemption, is
estimated to generate approximately $11,100,000 in TIF revenue over the 30-year lifetime of
the district.
Estimates assume that building value, the proportion of the project that is commercial, and
timeline are all provided by the developer. The estimate is preliminary and subject to change
and is based on a variety of factors including Deschutes County Tax Assessor's assessment of
the property and future change property ratio (CPR) rates. Estimates could also vary depending
on when the Core Tax Increment reaches the maximum indebtedness established in the Plan
($195 Million).
TAXING DISTRICT REVIEW PROCESS
All of the Taxing District agencies are being provided with a 45-day comment period to review
the application materials and this staff report which will occur between September 29 —
November 13, 2023.
In order for the tax exemption to apply to the full taxable amount, approval by taxing district
agency boards that comprise at least 51 % of the combined tax levy is required. The City is
seeking to have the policy of the MUPTE program approved by all of the taxing districts. This
application is being considered individually while an approval process for the policy of the
MUPTE program is worked on.
Expected timeline for taxing district review of 105 NE Franklin
• September 29 — November 13, 2023: Review and comment period for all taxing districts
• November 14, 2023: Bend -La Pine School District review and decision
• December 6, 2023: Bend City Council review and decision on the MUPTE application for
105 NE Franklin
CONCLUSION: Based on the application materials submitted by the applicant, and these
findings, the proposed project meets all applicable criteria for City Council approval.
CONDITONS TO BE MET IF APPROVED, IN ADVANCE OF EXEMPTION CERTIFICATION
WITH TAX ASSESSOR'S OFFICE:
1. Applicant must provide proof of a deed restriction that prohibits the use of hotels, motels,
and short-term vacation rentals on the site for the period of the exemption.
2. Applicant must demonstrate Earth Advantage Platinum Certification for both multifamily
buildings prior to exemption certification.
3. Applicant must demonstrate compliance with Enhanced Landscaping Requirements to
be verified by staff.
4. Applicant must submit a water budget to City staff for approval prior to exemption
certification. The City will monitor water use throughout the 10-year exemption period.
The site can't exceed 20% above the water budget for the site during the exemption
period.
5. Applicant must demonstrate that EV Charging infrastructure is provided as approved for
the MUPTE Program in future inspections prior to Certificate of Occupancy.
ATTACHMENTS
• Attachment A: Review of MUPTE Application, Project^, 105 NE Franklin Memorandum
prepared by Johnson Economics
• Attachment B: Application Materials
VIES C
MEETING DATE:
BOARD OF
COMMISSIONERS
October 11, 2023
SUBJECT: Update to County Finance Policy No. F-4 Capital Asset Policy
RECOMMENDED MOTION:
Move approval of County Administrator signature of revised County Finance Policy
No. F-4, Capital Asset Policy, and rescind policies F-5 and F-6.
BACKGROUND AND POLICY IMPLICATIONS:
Staff have reviewed the three capital asset policies and recommend combining policies F-4
(Capital Asset Disposal or Transfer), F-5 (Capital Asset, Capital Outlay Expenditure and Theft
Sensitive Asset Thresholds), and F-6 (Capital Outlay Expenditures) into one policy since the
topics are related and the three separate policies duplicate topics.
Attached is the revised capital asset policy document, a clean draft and a red -lined version.
In addition to combing the three policies into one, other updates are summarized as
follows:
• Removed the requirement for a Capital Asset Form when substituting capital items for
purchase. The updated policy sets guidelines of when a budget adjustment is required
and when a budget resolution is required. Resolutions would need board approval. This
provides additional oversight set in policy.
• Clarified capital assets (>$5,000) are tracked by Central Finance in the Tyler (Munis)
accounting system. Non -Capital Assets, inventory, and theft sensitive items are tracked
by the departments, at their discretion and as required by regulatory agencies.
BUDGET IMPACTS:
None.
ATTENDANCE:
Robert Tintle, Chief Financial Officer
Deschutes County Administrative Finance Policy No. F-4 (replaces prior policies F-4, F-5, F-6)
Effective Date: TBD
CAPITAL ASSET POLICY
STATEMENT OF POLICY
It is the policy of Deschutes County to establish guidelines to account for capital assets and
non -capital assets to achieve multiple compliance objectives. These objectives include:
• Budgetary classification of capital outlay expenditures
• Capital asset financial statement reporting
• Physical control over both capital and non -capital items that may be sensitive to theft or
loss
• Other Federal, State, and local regulations where applicable
APPLICABILITY
This policy applies to all County departments, offices, and County service districts under the
governance of the Board of County Commissioners.
DEFINITIONS
• Capital Outlay Expenditures (Budget) - Expenditures are classified by character based
on the fiscal period when the benefits for those expenditures are realized. Accordingly,
capital outlay is classified separately from current expenditures because they are
presumed to benefit both present and future fiscal periods.
• Capital Asset (GAAP) - With regard to financial statement reporting, the County aligns
with the Governmental Accounting Standards Board (GASB) definition from GASB
Statement No. 34, "The term capital assets includes land, improvements to land,
easements, buildings, building improvements, vehicles, machinery, equipment, works of
art and historical treasures, infrastructure, and all other tangible or intangible assets
that are used in operations and that have initial useful lives extending beyond a single
reporting period."
• Non -Capital Asset - A capital -type item acquired for use in the conduct of County
business which does not qualify as a capital asset because it falls below the cost or
useful life thresholds for capital assets.
• Capitalization Threshold - For financial statement reporting in accordance with GAAP,
and for budgeting or other internal reporting purposes, Deschutes County establishes a
threshold of $5,000 as the minimum individual item cost, and an estimated useful life of
more than one (1) year for items accounted for as capital assets (GAAP) and capital
outlay expenditures (budget).
POLICY
1. Capital Outlay Expenditures
Budgetary and purchasing policies for capital outlay items:
a. Budget - The estimated cost of an item must be appropriated in the capital outlay
category of the department or fund for the fiscal year in which the item will be
purchased. In addition, a description of the item must be included in the capital request
section of the budget document explaining the need for the item.
b. Acquisition - County purchasing rules must be followed in the purchase of the capital
item. Purchasing requirements are dependent on the amount and type of purchase.
Documentation must be maintained in the County accounting/ procurement systemas
evidence that all applicable compliance related to purchasing rules have been met.
c. Departments must contact the Central Budget Office for a budget adjustment if:
i. The department unintentionally budgeted capital items within the personnel
services or the material and services roll up category.
ii. The department requests to transfer budget appropriation from the personnel
services or the material and services roll up category for the purchase of a non -
budgeted additional capital item.
iii. The department requests to substitute a budgeted capital item with a different
non -budgeted capital item of equal or lesser expense.
d. Departments must contact the Central Budget Office for a budget resolution presented
before the Board of County Commissioners if:
i. The department requests the purchase of a non -budgeted additional capital
item that cannot be funded through appropriation savings within the personnel
services or materials and services roll up category.
ii. The department requests to recognize increased revenue to cover the purchase
of a non -budgeted additional capital item.
iii. The department requests to substitute a budgeted capital item with a non -
budgeted additional capital item of greater expense and cannot cover the
expense with appropriation savings within the personnel services or material
and services roll up category.
e. Additional capital items and capital substitutions are subject to the County's purchasing
rules.
2. Capital Assets
Capital assets meeting the definition in this policy will be tracked by the County Finance
Department in the centralized accounting and control system to protect such assets from
the danger of theft or misuse. This control system includes tracking asset serial numbers (or
other identifying asset numbers), and recording information pertinent to the asset (cost, date of
acquisition, manufacturer, location, and other information as required). To validate the
accuracy and completeness of the database, the County Finance Department will coordinate
with departments to perform a physical inspection of its capital assets, either simultaneously or
on a rotating basis, so that all of the County's capital assets are physically accounted for at least
once every two years, and to ensure the asset's continued value, condition and location, and to
update any other information required for the asset.
Assets subject to cost recovery will be depreciated (or amortized) through the accounting
system and will be appropriately reported on the County's annual financial statements. The
County aligns financial reporting for specific capital asset classes with pronouncements from
the Governmental Accounting Standards Board (GASB). This includes accounting for leases,
internally developed software, and subscription -based information technology arrangements.
A capital asset disposal/transfer form must be completed when a capital asset is disposed of,
taken out of service, or transferred to another location or department. The department
initiating the disposal, removal from service or transfer is responsible for completing the
disposal/transfer form and submitting it to the Finance Department.
Lost or stolen items - If a department is unable to locate an item, or if an item has been stolen,
the department will give written notice to Risk Management. The notice will include a
description of the effort to locate the item and the determination of the loss. Stolen assets
should also be reported to the proper authority and a copy of the report forwarded to Risk
Management. A capital asset disposal form must be completed and submitted to the Finance
Department.
3. Non -Capital Assets
In addition to the Capital Assets for external reporting purposes and Capital Outlay for
budgetary and internal reporting purposes, the County will also exercise control over its non -
capital assets to ensure accountability, protect property, or to comply with regulatory or
granting agencies.
At the department's discretion, non -capital assets and theft -sensitive items may be tracked at
the department level. The determination of which items must be tracked may vary between
County departments based on the risk and compliance environment in which the department
operates. For example, a granting agency may require accountability for purchased items below
the County's dollar threshold for capitalization.
Non -Capital Asset Control - Departments may maintain inventory control systems for non -
capital assets and theft -sensitive items which are designed to meet departmental compliance
and reporting needs.
Capital Asset Accounting - Capital Assets meeting the definition in this policy will be
tracked by the Finance Department in the accounting system. Moved to Item #2
JTEs o
Deschutes County Finance Policy No. F-4 (replaces prior policies F-4, F-5, F-6)
Effective Date: TBD
CAPITAL ASSET POLICY
STATEMENT OF POLICY
It is the policy of Deschutes County to establish guidelines to account for capital assets
and non -capital assets to achieve multiple compliance objectives. These objectives
include:
• Budgetary classification of capital outlay expenditures
• Capital asset financial statement reporting
• Physical control over both capital and non -capital items that may be sensitive to
theft or loss
Other Federal, State, and local regulations where applicable
APPLICABILITY
This policy applies to all County departments, offices, and County service districts under
the governance of the Board of County Commissioners.
DEFINITIONS
• Capital Outlay Expenditures (Budget) - Expenditures are classified by character
based on the fiscal period when the benefits for those expenditures are realized.
Accordingly, capital outlay is classified separately from current expenditures
because they are presumed to benefit both present and future fiscal periods.
• Capital Asset (GAAP) - With regard to financial statement reporting, the County
aligns with the Governmental Accounting Standards Board (GASB) definition
from GASB Statement No. 34, "The term capital assets includes land,
improvements to land, easements, buildings, building improvements, vehicles,
machinery, equipment, works of art and historical treasures, infrastructure, and
all other tangible or intangible assets that are used in operations and that have
initial useful lives extending beyond a single reporting period."
Non -Capital Asset - A capital -type item acquired for use in the conduct of County
business which does not qualify as a capital asset because it falls below the cost
or useful life thresholds for capital assets.
Capitalization Threshold - For financial statement reporting in accordance with
GAAP, and for budgeting or other internal reporting purposes, Deschutes County
establishes a threshold of $5,000 as the minimum individual item cost, and an
estimated useful life of more than one (1) year for items accounted for as capital
assets (GAAP) and capital outlay expenditures (budget).
POLICY
1. Capital Outlay Expenditures
Budgetary and purchasing policies for capital outlay items:
a. Budget - The estimated cost of an item must be appropriated in the capital
outlay category of the department or fund for the fiscal year in which the item
Policy #F-4, Capital Asset Policy Page 1 of 3
will be purchased. In addition, a description of the item must be included in the
capital request section of the budget document explaining the need for the item.
b. Acquisition - County purchasing rules must be followed in the purchase of the
capital item. Purchasing requirements are dependent on the amount and type of
purchase. Documentation must be maintained in the County accounting/
procurement system as evidence that all applicable compliance related to
purchasing rules have been met.
c. Departments must contact the Central Budget Office for a budget adjustment if:
i. The department unintentionally budgeted capital items within the
personnel services or the material and services roll up category.
ii. The department requests to transfer budget appropriation from the
personnel services or the material and services roll up category for the
purchase of a non -budgeted additional capital item.
iii. The department requests to substitute a budgeted capital item with a
different non -budgeted capital item of equal or lesser expense.
d. Departments must contact the Central Budget Office for a budget resolution
presented before the Board of County Commissioners if:
i. The department requests the purchase of a non -budgeted additional
capital item that cannot be funded through appropriation savings within
the personnel services or materials and services roll up category.
ii. The department requests to recognize increased revenue to cover the
purchase of a non -budgeted additional capital item.
iii. The department requests to substitute a budgeted capital item with a
non -budgeted additional capital item of greater expense and cannot
cover the expense with appropriation savings within the personnel
services or material and services roll up category.
e. Additional capital items and capital substitutions are subject to the County's
purchasing rules.
2. Capital Assets
Capital assets meeting the definition in this policy will be tracked by the County Finance
Department centralized accounting and control system to protect such assets from the
danger of theft or misuse. This control system includes tracking asset serial numbers (or
other identifying asset numbers), and recording information pertaining to the asset (cost,
date of acquisition, manufacturer, location, and other information as required). To
validate the accuracy and completeness of the database, the County Finance Department
will coordinate with departments to perform a physical inspection of its capital assets,
either simultaneously or on a rotating basis, so that all the County's capital assets are
accounted for at least once every two fiscal years, and to ensure the asset's continued
value, condition and location, and to update any other information required for the asset.
Assets subject to cost recovery will be depreciated (or amortized) through the accounting
system and will be appropriately reported on the County's annual financial statements.
The County aligns financial reporting for specific capital asset classes with
pronouncements from the Governmental Accounting Standards Board (GASB). This
includes accounting for leases, internally developed software, and subscription -based
information technology arrangements.
Policy #F-4, Capital Asset Policy Page 2 of 3
A capital asset disposal/transfer form must be completed when a capital asset is disposed
of, taken out of service, or transferred to another location or department. The
department initiating the disposal, removal from service or transfer is responsible for
completing the disposal/transfer form and submitting it to the Finance Department.
Lost or stolen items - If a department is unable to locate an item, or if an item has been
stolen, the department will give written notice to Risk Management. The notice will include
a description of the effort to locate the item and the determination of the loss. Stolen
assets should also be reported to the proper authority and a copy of the report forwarded
to Risk Management. A capital asset disposal form must be completed and submitted to
the Finance Department.
3. Non -Capital Assets
In addition to the Capital Assets for external reporting purposes and Capital Outlay for
budgetary and internal reporting purposes, the County will also exercise control over its
non -capital assets to ensure accountability, protect property, or to complywith regulatory
or granting agencies.
At the department's discretion, non -capital assets and theft -sensitive items may be
tracked at the department level. The determination of which items must be tracked may
vary between County departments based on the risk and compliance environment in
which the department operates. For example, a granting agency may require
accountability for purchased items below the County's dollar threshold for capitalization.
Non -Capital Asset Control - Departments may maintain inventory control systems for
non -capital assets and theft -sensitive items which are designed to meet departmental
compliance and reporting needs.
Approved by the Deschutes County Board of Commissioners (date)
Policy #F-4, Capital Asset Policy Page 3 of 3
<Insert Contact Person> To: Gordon Howard
<Insert Organization Grant Program Manager, Department of Land
Title, Organization> Conservation and Development
RE: Letter of Support for COIC's application to DLCD's Technical Assistance grant for the CORE3
project
Dear Mr. Howard,
I'm writing in support of COIC's proposal for the CORE3 project. This funding would support
critical next steps in land -use planning for this facility, as well as leverage other promising
funding opportunities and past work and investment in this process. As an Executive Council
member of CORE3, my organization, <insert nave> recognizes that Central Oregon, Oregon,
and the Pacific Northwest are facing growing threats from natural disasters and other shocks
that severely impact our communities. At the same time, Central Oregon lacks the facilities to
meet existing training needs for public safety personnel and a multi -agency coordination center
for emergency operations.
These facts highlight the need to take collective action to build a more prepared, resilient
region to meet these uncertainties and increase our preparedness, coordination, and training
capacity. As <insert your role here e.g, the land owner, a public safety organization that woulc
recognizes the critical need for the CORE3 project, which will function as a multi -agency
coordination center and training facility and help us accomplish our goals of <insert how this
helps you accomplish, goals here>. Additionally, the facility would serve a critical
function for the state in the event of a major natural disaster like a Cascadia Subduction Zone
event, as Redmond and Redmond Airport are envisioned as the staging grounds for rescue and
recovery operations.
At this time, <org name> is providing <fir ancial support, staff support, etc.> to move this
project successfully through the land -use planning process. (<you may include other reas
your org is supporting CORES beyond the land use planning phased). With COIC and the other
Executive Council members, we share the goal of making this facility a reality for the sake of our
communities, and for creating a safe and resilient Oregon. Thank you for your careful
consideration of this proposal.
Sincerely,
<Your Signature,: Name, Title, Organization, and Contact Info>
October 6, 2023
Chair Ken Helm
Vice Chair Mark Owens
House Committee on Agriculture and Natural Resources
Salem, Oregon 97301
Dear Chair Helm and Vice Chair Owens,
We are urging the legislature to take action to protect the tremendous and collaborative progress on
water supply that our basin has made over the past twenty-five years.
The current Oregon Water Resources Commission "Groundwater Allocation Rules" are a one size fits all,
statewide approach that will damage our existing water conservation, allocation and restoration efforts.
The proposed rules attempt to fit a fixed calculation of "reasonably stable groundwater levels" into all
basins. The proposed definition of "reasonably stable groundwater levels" apparently relies on water
level changes defined by the Water Resources Commission in 1988 in a basin whose hydrogeology bears
no resemblance to our basin.
The rules also fail to consider five key factors:
✓ Our basin has an existing and productive collaborative regional effort to identify new tools for
water use and conservation in the context of the unique characteristics of our large basin and
exceedingly deep aquifer. All stakeholders are at the table, and this rulemaking would up -end
that effort.
✓ Groundwater levels in our basin are largely driven by precipitation. In addition, certain areas
through recent and thoughtful actions - - such as canal piping and lining - - have led to an
expected reduction in groundwater levels near these projects. That should come as no surprise,
as we are eliminating wasteful and unnatural aquifer recharge. We can expect groundwater
levels near these projects to eventually adjust to more natural levels. Yet the Department points
specifically to one measurement in this area as justification for their concerns about water level
changes in the Deschutes Basin. This is misleading and ignores the detailed studies and
information outlining the interaction between agriculture, irrigation and municipal use and
water resources in our basin.
✓ The Oregon Legislature has - - on five occasions - - passed legislation to create, codify and renew
the Deschutes Basin Mitigation and Conservation statutes. The Oregon Legislature has
repeatedly recognized on a bi-partisan basis the unique nature of the Deschutes Basin. Those
actions have led to dramatically increased mid -Deschutes flows, restoration of critical areas
including Whychus Creek, the ability to respond to federal ESA listings, and a twenty-five year
collaborative effort to manage water in a responsible manner. This groundwater rule essentially
reverses that long standing precedent.
✓ The basin is not standing still. As mentioned above, the Deschutes Basin Water Collaborative is
working to identify issues (including groundwater concerns), review the scientific data, and
prepare a game plan for the basin as we move forward.
✓ The region has taken responsible action to ensure that most population growth also comes with
water conservation efforts. Every city in the region has a Water Management and Conservation
Plan. Cities have adopted responsible landscape standards, alternative watering days, and are
pursuing aquifer storage projects. (Bend for example, grew by 26,169 people (34%) over the
past 18 years, but has only increased its annual surface and groundwater by 8.5% over that time
frame). Cities are required by state statute to maintain a 20-year supply of buildable land, but as
drafted, these rules will make it nearly impossible for cities to do that. This will, perversely, push
housing and population growth onto rural lands and exempt wells, which are not addressed by
the proposed rules. At the very least, the rules should not penalize local governments which
have complied with existing statutes, are required to comply with other state statutes regarding
housing/economic factors, and are engaged in a sincere effort to address water concerns in their
basin.
Stakeholders, including those in our basin, are almost universally concerned with the Department's
unwillingness to engage in meaningful two-way discussions about these rules. Much of the rulemaking
was completed during the prior 2023 Legislative Session, while we were heavily engaged in supporting
your comprehensive drought package and ensuring passage of the promising Stream Restoration and
Juniper Management Program (which is already getting underway in our region).
These are clearly complicated issues, which vary greatly from basin to basin. We would strongly urge
your Committee and the Legislature to work with the Governor to direct the Department to extend the
process, sit down with our basin in a meaningful way, and protect the collaborative, visionary, and
successful track record that the Deschutes Basin has established over the past two decades.
Sincerely,
Central Oregon Mayors and County Commissioners
