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HomeMy WebLinkAbout2008-08-27 Business Meeting MinutesDeschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701 -1960 (541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.org MINUTES OF BUSINESS MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, AUGUST 27, 2008 Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend Present were Commissioners Dennis R. Luke, Michael M Daly and Tammy Melton. Also present were Dave Kanner, County Administrator; Erik Kropp, Deputy County Administrator; Sheriff Larry Blanton; Timm Schimke, Solid Waste Department; Susan Ross and Teresa Rozic, Property and Facilities; Anna Johnson, Communications; Tom Blust, George Kolb and Roger Olson, Road Department; Mary Goodwin, Colette Whelan and Shannon Dames, Health Department; Mark Pilliod, Legal Counsel; and approximately thirty other citizens, including Hillary Borrud of the Bulletin and other representatives of the media. Chair Luke opened the meeting at 10:00 a.m. 1. Before the Board was Citizen Input. None was offered. 2. Before the Board was the Reading of a Proclamation, Declaring September National Preparedness Month. Mary Goodwin read the proclamation to the audience. She, Colette Whelan and Shannon Dames explained how the County and Health Department work with other agencies and entities to address emergency situations. DALY: Move signature. MELTON: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 1 of 17 Pages 3. Before the Board was Consideration of Chair Signature of Document No. 2008 -476, a Notice of Intent to Award Contract Letter for the Knott Landfill 2008 Rock Removal Project. Timm Schimke gave an overview of the item. Nineteen responses were received; $4 million was budgeted for the project and the low bid was $2.75 million. About 1/2 million cubic yards will be moved to the Rose pit across the road. DALY: Move approval. MELTON: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. 4. Before the Board was Consideration of Chair Signature of Document No. 2008 -481, a Notice of Intent to Award Contract Letter for Providing and Erecting Two Metal Storage Buildings. Roger Olson explained the item. The buildings will be used to store winter sanding material and heavy equipment to be used for snow removal. ODOT no longer lets the County use its sand or storage location. MELTON: Move signature. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. 5. Before the Board was Consideration of Signature of Resolution No. 2008- 030, Initiating the Vacation of a Portion of Nelson Road. George Kolb said that this portion of Nelson Road was abandoned when the road was realigned. It is within the FAA clear zone by the Bend Airport and is no longer needed for public transportation. The property will be split between the City of Bend and a private property owner. A right of way easement will remain for utilities. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 2 of 17 Pages MELTON: Move signature. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. 6. Before the Board was Consideration of Signature of Order no. 2008 -024, Vacating a Portion of Nelson Road. MELTON: Move signature. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. 7. Before the Board was Consideration of Signature of Document No. 2008- 485, a Memorandum of Understanding with the Urban Renewal Agency of the City of Redmond to Exchange Land Related to the Becky Johnson Center. Erik Kropp gave an overview of the item, which involves the parking lot at the Becky Johnson Center and nearby land. George Endicott said the City Council approved the MOU last night. Jim Hendrix introduced Heather Richards, Planner; and said this has been a long project, important to revitalizing downtown and having a new City Hall. Centennial Park is a key piece of this process. Using the existing parking lot is necessary for this to happen. There will be street improvements for better access, a better parking area and a play area for the Center. It is felt that this is an equitable trade. Ms. Richards said the play area will take up part of the alleyway, which will be improved with lawn, etc. Liability will be shared between the County and City. The Deschutes Children's Foundation has insurance coverage; the County and City are property owners. Commissioner Luke asked who would be responsible if the Deschutes Children's Foundation was no longer there. MELTON: Move signature. DALY: Second. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 3 of 17 Pages VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. 8. Before the Board was a Public Hearing and Consideration of Signature of Order No. 2008 -078, relating to Hospital Revenue Bonds (Cascade Healthcare Community, Inc.) Issued by the Hospital Facility Authority of Deschutes County. Commissioner Daly disclosed that he is the Chair of the Hospital Authority Board. Chair Luke opened the public hearing. Michael McGinnis, CEO, oversees the operation of two Cascade Healthcare Community facilities, in Redmond and Bend. Jim Diegel, Joe Smith and Kevin Abe also came before the Board. Mr. McGinnis gave an overview of the bonds and the reasons for this change. The variable rate bonds have gone up in interest to an amount that is not economically prudent. The new bonds will be at a fixed rate that is much lower. The bonds do not constitute a debt on the County or the Authority; they would be solely the responsibility of Cascade Healthcare Community, Inc. MELTON: Move signature. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. 9. Before the Board was Consideration of Signature of Resolution No. 2008- 124, Awarding a Contract for Architectural Services related to the Design of a Mental Health Residential Treatment Center as a Contract - Specific Special Procurement. Susan Ross explained the item, which involves an award to Pinnacle Architects for work on the Center. It would be built the same as Sageview Center. The proposal submitted by the architect team working on the public safety complex was considerably higher. The contract amount is $70,000. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 4 of 17 Pages Commissioner Daly asked if civil engineering is included; Ms. Ross said that this work was already done as a part of the overall complex and was already part of the budget documents as presented to the Board. Commissioner Daly feels that a specific site drawing and additional engineering will be needed to deal with the rock on the property. Ms. Ross stated that all of the geotechnical work was already done for the entire area. The standard civil architectural costs associated with the building are included in this bid. MELTON: Move signature. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. 10. Before the Board was Consideration of Signature of Document No. 2008- 473, an Intergovernmental Agreement with Central Oregon Intergovernmental Council and Local Cities and Counties to Conduct an Endangered Species Act Fish Risk Assessment for Central Oregon. Dave Inbody gave an overview of the item, which has to do with the reintroduction of native species into the local river basins. Local agencies do not have a way to know what the potential risks might be to various jurisdictions, so part of the agreement would be to assess the risks. Land use actions and water use near rivers could be an issue. Commissioner Daly said he understands that this evaluation should be done but he is concerned that almost anything having to do with growth, such as new industry, can have a negative impact and cause problems for local government. MELTON: Move signature. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 5 of 17 Pages 11. Before the Board was a Public Hearing (continued from August 6, 13 & 18), and Consideration of First Reading of Ordinance No. 2008 -025, Making Certain Determinations and Findings Relating to and Approving the Bend Municipal Airport Urban Renewal Plan. Dave Kanner had nothing to add to previous discussions, but that City staff is present to answer any questions. Commissioner Luke said there is concern about impacts on District funding, in particular Rural Fire Protection District No. 2. The City Manager has indicated something is being addressed. Tom Fay said that he has some new information to present to the Board on this issue. In reviewing the contract with the City and the District, the allotments are based on taxable assessed value, before the urban renewal district impacts. That means the entity is responsible for paying it at that rate. The Fire District's portion would double, however. In actual revenue, 86% of funding goes to fire services. The urban renewal district would affect expenses by about 3 %. They are trying to work out a situation with the City to deal with the shortfall for this area and for Juniper Ridge. Commissioner Luke asked if the City took over fire protection at the Airport; would that help. Mr. Fay said that both entities provide services and it hard to know what might be needed there. One consideration is perhaps user fees or other general funds related to the Airport. John Russell of the City of Bend stated that there are a lot of options and the City plans to work with them to resolve these questions. Mike Maier testified that the City of Bend has not been forthright with the county on urban renewal districts, including Juniper Ridge and the Park District. There were discussions with the City and the City agreed to a memorandum of understanding to reimburse the districts for lost revenues over the life of the District. This would be after the City paid its up -front costs. After that the City would not come up with the MOU. Given this history, it appeared that was a money grab, saying what you need to say to get it approved. He would like the Board to make sure the City commits to its promises of the past before approving this. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 6 of 17 Pages His experience with URD goes a long way back. Normally they are used for areas that are in decay, identify the blight and improve the area. He has a hard time believing this is a blighted area, and it isn't even within the urban growth boundary. They should not ask the taxing districts to give up revenue for the City to make more money. Commissioner Luke stated that the Board is the Urban Renewal Agency on this and bonds will not be issued until certain issues are resolved. Mr. Maier does not want the Board to forget the promises made and broken a few years ago by the City. The non -city districts should not have to pay for a City project, and it needs to be put into writing so that in the future the facts will be known. Jim Russell stated that he doesn't think the City committed to an MOU; it could have been something that the City Administrator did at the time. If the plan is adopted by December 31, 2008, this can be put into effect in 2009. The critical date is to have the second reading and have the plan in effect before the end of the year. Otherwise it would be delayed a year. Mr. Kanner said the Plan is ready for adoption, but the concerns raised by the Board do not relate exactly to the Plan but to its effects on other entities. The issue regarding an MOU does not relate to the Plan, nor do discussions between the Fire District and the City. They are legitimate concerns but do not directly impact the Plan itself. Commissioner Melton stated that if the Plan is already in place, incentive to work on the other issues would be lost. Mr. Kanner said that in order for the agency to issue bonds or incur debt, a separate action of the Board is needed. The City cannot do anything without the Board's concurrence. Commissioner Luke clarified that they can do anything they want within the Plan as long as they are not asking for urban renewal funds. Commissioner Melton said this was discussed some months ago and thought it could be retroactive. Mr. Russell stated that the plan had to be effective by September 30, when the frozen base set at last January. The other date is the revenue date, having it effective by December 31, 2008. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 7 of 17 Pages Sheriff Blanton stated that the Fire District is not the only potential issue relating to taxing. Growth above the frozen base, when Sheriff's Office rates were established, some assumptions were made. One was growth and what it means to public safety. He disagrees with moving forward; the time to discuss the fallout and parameters regarding lost revenue should be done before anything is agreed upon. What this means to the Sheriff is uniforms and police cars. It will be hard to do what needs to be done as it is, but urban renewal has a negative impact. Commissioner Luke said there is already compression in some areas because of enterprise zones and urban renewal districts, where there is not enough funding for all of the taxing districts. Commissioner Melton asked about the airport's master plan, which has not been updated in some years. Local residents are concerned about changes at the airport. She asked when the master plan process will be finished, and how to know if proper input has been obtained. Mr. Russell said the projects in the plan are an estimate. They are a shot in time and include a variety of ideas which will change over time. The master plan for the airport will involve a broad public process. The urban renewal plan may have to be changed after that process. Commissioner Melton stated they are in an enterprise zone already. She is concerned that businesses will feel what is in the urban renewal plan will happen, and if something is removed because of master plan changes, a business may be concerned at that point. Mr. Russell said the enterprise zone is an incentive but provides no funding for infrastructure. The City has to bear the expense of the infrastructure at this point. He believes they can balance out. There needs to be a source for funding of this infrastructure. Many of these issues will be addressed within the next year and most businesses would not be reliant on this information so soon. They may be relying on the existing master plan instead. Both will be modified as needed. Commissioner Melton said that the expansion is being paid by County residents, and those residents need to be involved in the process. She understands jobs are needed but so are essential public safety agencies. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 8 of 17 Pages Sue Palmeri had nothing to add. Commissioner Daly stated that they are losing track of the important issue, which is the businesses that are attracted to the Airport and employ hundreds of people. Many communities would love to have those companies there. The County needs to show that they want these employers here, a diverse economy that benefits everyone. Perhaps the new wages will help make up the shortfalls. Commissioner Luke said that he is ready to move forward but is concerned about an agreement of the Fire District and the City that needs to be resolved. He would like to readdress this on September 3. There are concerns about the impacts on area residents as well. The Sheriff's point about lost revenue is also important. There is validity about keeping and gaining jobs, however. Commissioners Melton said this is a 25 -year plan and would like to see the plan update happen first. Without the master plan being updated, with community input, she is not ready to support this. She wants to balance the master plan with potential growth. John Russell stated that the County oversight of the plan will be for the betterment of the Airport and the area. Commissioner Luke continued the public hearing to the September 3 Board business meeting. 12. Before the Board was a Public Hearing (Continued from August 18) and Consideration of Signature of Resolution No. 2008 -119, Submitting to the Voters a Proposed Ordinance to Increase the Transient Room Tax Rate to 9 %. Mark Pilliod submitted a revised resolution, and explained that the changes would be as follows: the amount would go from 7% to 8% on September 1, 2009; and from 8% to 9% on September 1, 2010. the reasons are recognition that some providers already have contracts in place for that period of time. Also, a clause was added in regard to alternative funding being necessary for road maintenance. Ad valorem property tax funds cannot be used for road maintenance, so the property tax component does not contain this element. As it currently exists, there are restrictions in this regard. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 9 of 17 Pages The rationale behind this recital was a concern that commitments may have been understood by various interested parties that some of the revenue may be devoted to, for instance, the Fair & Expo Center. Among these priorities, finding the road maintenance funding source is the main priority. Commissioner Luke asked if Tom Blust's letter is in the record. Mr. Pilliod said that this letter and another should be included. Tom Blust introduced a memorandum dated August 26 regarding road maintenance costs and the use of transient lodging tax for some of these roads. Commissioner Luke said that a lot of testimony has already been submitted, and asked that testimony be kept brief today. David Bishop testified that he is a member of the Fair & Expo Board, and presented some thoughts and ideas relating to the Fair & Expo. (He submitted a document for the record.) He said that room tax changes have been discussed for many years and he feels that an increase in the tax should benefit the Fair & Expo Center, which is eligible and a member of the International Association of Conference Centers. The Fair & Expo puts a lot of "heads in beds ". At one time the Center cost the County about $800,000 a year but at this point is nearly economic viable, with an annual subsidy of less than $170,000. A stable source of funding is needed for operations and for reserves. There is a lot of area to maintain, both parking and landscaping and buildings and equipment. The goal is to encourage the 2% tax increase, and to include in the resolution where the money will be spent. The Fair & Expo would like to see 6/9 of the funding to go to them. Commissioner Melton said that the 1% from the Welcome Center already goes to the Fair & Expo. Mr. Bishop said that is much less than what is needed. Commissioner Daly stated that he believes that the first year the deficit was about $400,000, not $800,000. The first year didn't have any contracts in place. It has improved over time but is unable to support itself without general fund help. He feels that the concessions could make up the shortfall. He is concerned that the Fair Board and others don't want to discuss this issue. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 10 of 17 Pages Mike Maier said that he supports what Mr. Bishop stated. He feels that without a doubt the Fair & Expo Center is the single largest facility the County has, with perhaps about $90 million worth of improvements. He feels that funding should be used to maintaining the facilities in the future. This is the most successful venue of its type in the state. The Fair is successful each year while other counties can't draw people to theirs. The Fair & Expo should be identified as a recipient of funding. Voters will want to know where the money is going. It will help them make a decision. Commissioner Daly agreed that if the Fair & Expo is to get funds, it should go into reserves. Carl Vertrees, a resident since 1975, is a Fair supporter. He agrees with fiscal responsibility, and feels that every Fair in the state is subsidized. He wanted the transient tax raised some years ago. He feels that spelling out how the funds will be spent should be detailed in the measure so it is more likely to be supported by the voters. Commissioner Luke stated that the summary statement does mention the Fair & Expo Center. Laura Harvey runs Sunriver Retreats and has been in the area for 24 years. She wrote previously regarding reducing the room tax. She is disheartened that the Fair & Expo wants more money than COVA. They are trying to rebuild their industry. The State and Governor have ideas that are going to increase taxes for citizens and will negatively impact tourism. She wondered why everyone else feels is it important not to raise taxes except for the three Commissioners. She went on in detail to talk about how the rising costs of gasoline, utilities, credit card rates, mortgages and other things are all causing problems for the tourism industry. Commissioner Daly said that there was an increase of 6% in room tax collections in July, and it seems to go up every year. He feels the industry here is holding it own. Greg Mindt of Wilsonville said that testimony had been provided previously through Tom Luersen. He presented an industry position on the issue. There is concern about the increase in these economic times. However, they waned to present a compromise, including a 1% increase that is not effective until 2010. These funds need to be invested where they yield the highest return. COVA should get at least 70% of these funds. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 11 of 17 Pages Also, a new entity, visitor development, could be put into place so the County and COVA could work together. The fund would be used for matching funds to bring in larger groups that may use the Fair & Expo Center. They would work with COVA to decide where this business and funding should go. Commissioner Daly asked if any of the items relate to the road maintenance issue. Mr. Mindt said that COVA would target events, businesses and other groups to create more business. This would be in addition to what COVA already gets. The remainder could go for other County purposes, including roads. Commissioner Luke asked why a separate group would be necessary, and why would COVA be in charge. Perhaps an independent group would be best, involving those who are not vested in the industry. Scott West, the strategy officer for Travel Oregon, said that Todd Davidson testified previously. He was involved in this issue as far back as 2001. He feels that the intent, tourism facilities, have been clearly identified by the State and others. Transcripts were examined to confirm the intent. In regard to the committee, people who feel the investment of those dollars is important should be involved. This should include industry people who are in touch with the marketplace. The proposal to invest in the industry is important because it can be grown. Those revenues benefit the County in many ways. Alana Audette said that she provided a written statement via e -mail, but wanted to point out the partnership with the County. The economic viability of the area is the issue. Any tax needs to be fair and equitable, and should not be borne by visitors. Residents need to pay their fair share. The investments made through COVA have raised revenue for the County and the industry should not be unfairly burdened just because it is an easy taxing mechanism in place. She would like to work with the Fair & Expo Center to make sure it remains viable but local citizens should fund part of this as well. Commissioner Daly stated that COVA does a good job but there is a big problem that relates to tourism facilities. The Road Department has lost $3 million in funding. General funds cannot be used for this purpose, and the gas tax will not be raised. It makes sense that if a road is used primarily to get tourists from one place to another, that is certainly tourism related. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 12 of 17 Pages Ms. Audette said that local citizens should step up to the plate to take care of some of these needs, and it shouldn't be borne entirely by tourists. Visitors may not continue to come here if the tax is higher. Commissioner Daly said that the cities already charge 11% without problems. He added that landfill fees have increased, and SCD's are now in place; both of these are to help the Road Department's shortfall. It is unknown what is needed for roads that relate to tourism. No options have been presented by the industry in how to take care of this problem. Ms. Audette suggested that a local option tax may be one way to go. The industry wants to be a partner and COVA does a good job. She would like to see COVA mentioned by name in the resolution so that voters are aware of where the money would go. Mr. Kanner asked Mr. Mindt if the Board accepted the 1% tax increase, would his group agree not to enter into litigation if the County used it as it sees fit. Mr. Mindt said it depends on how the funds would be used, but it should be used primarily for tourism, at least 70 %. Commissioner Daly asked if he is familiar with the letter from Wayne Shetterly regarding the intent of the law. Mr. Mindt replied that there would be a burden of proof to show that a road is dominated by the tourism industry. Commissioner Melton asked whether it can be indicated where funds should go for the first five years. Mr. Kanner said this could be in the recitals; it would be harder to put it in the ballot summary due to wording constraints. Commissioner Melton said there are many needs and the intent should be clear. Mr. Kanner pointed out that there is a problem binding a future Budget Committee to certain things. Commissioner Daly said it may be hard to agree with something that specific and binding. Commissioner Luke stated that things change over time. The last payment on the bonds that built the Visitors Center will be made this year, but it has not been used for that purpose for years. At the time it was a good idea. The Budget Committee is the place to make these decisions. COVA still has to come before them, as does the Road Department and the Fair & Expo Center. This can change with time and the Committee should be able to do what is appropriate at that time. That would be the legitimate forum to make those decisions. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 13 of 17 Pages Commissioner Daly feels the Budget Committee is the appropriate place for these discussions to occur. Many things could change over time. Each year COVA and the others have to present their needs and this is the fairest way to handle this issue. Commissioner Melton said that if she is to move forward on this tax, which may cause a reduction in industry revenue, she wants to know the specific needs. Commissioner Luke stated that those needs can be detailed but he doesn't want it in the ballot measure. Commissioner Luke read a statement at this time. (A copy is attached.) Commissioner Daly stated that he does not like to see taxes increase for anyone. However, visitors impact local infrastructure and services. About 20% of the Sheriff's calls come from those from out of the area. Some of that need is plowing and maintaining roads, at more than $1 million a year. Some help is needed to provide these services to make the area more attractive to tourists. There are not many other ways to fund this work other than taking away from Health and Mental Health and other departments that provide critical community services. By phasing it in over time, it makes it easier on the industry. Work has been done to make this more palatable with the industry but tourism - related roads are important to everyone. Commissioner Melton said that without specifically allocating the dollars, she disagrees. DALY: Move approval of the Resolution. LUKE: Second. VOTE: MELTON: No. (Split vote.) DALY: Yes. LUKE: Yes. Before the Board was Consideration of Approval of the Consent Agenda. MELTON: Move approval of the Consent Agenda. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 14 of 17 Pages Consent Agenda Items 13. Signature of Document No. 2008 -477, a Space Lease with Portland State University (portion of Juvenile Community Justice Building) 14. Signature of Document No. 2008 -478, a Lease with All American Timber Co. for Bare Land in the La Pine Industrial Park 15. Chair Signature of Document No. 2008 -475, Request for Reconveyance (Paid Loan) 16. County Administrator Signature of Document No. 2008 -448, an Amendment to a Lease Agreement with Mocha Janes, LLC 17. Signature of Resolution No. 2008 -125, Transferring Appropriations to the Crime Prevention Services Fund 18. Approval of Minutes: • Business Meetings: August 6 • Public Hearings: July 7 (La Pine Groundwater); July 21 (Bend Transportation District) CONVENED AS THE GOVERNING BODY OF THE SUNRIVER SERVICE DISTRICT 19. Before the Board was Consideration of Signature of a Letter Appointing Stephen Hamilton to the Sunriver Service District Managing Board, through August 31, 2011. MELTON: Move approval. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. 20. Before the Board was Consideration of Signature of a Letter Appointing Bob Wrightson to the Sunriver Service District Managing Board, through August 31, 2010. MELTON: Move approval. DALY: Second. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 15 of 17 Pages VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. CONVENED AS THE GOVERNING BODY OF THE 9 -1 -1 COUNTY SERVICE DISTRICT 21. Before the Board was Consideration of Approval of Accounts Payable Vouchers for the 9 -1 -1 County Service District for Two Weeks in the Amount of $9,293.56. DALY: Move approval, subject to review. MELTON: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. CONVENED AS THE GOVERNING BODY OF THE EXTENSION /4 -H COUNTY SERVICE DISTRICT 22. Before the Board was Consideration of Approval of Accounts Payable Vouchers for the Extension /4 -H County Service District, for Two Weeks, in the Amount of $2,288.38. MELTON: Move approval, subject to review. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. RECONVENED AS THE DESCHUTES COUNTY BOARD OF COMMISSIONERS 23. Before the Board was Consideration of Approval of Accounts Payable Vouchers for Deschutes County, for Two Weeks, in the Amount of $1,023,381.45. Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 16 of 17 Pages DALY: Move approval, subject to review. MELTON: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. 24. Before the Board were Additions to the Agenda. Before the Board was Consideration of Chair Signature of a Joint Letter of Support for the City of Sisters' Conservation Grant Application to Help Fund Development of a Water Management and Conservation Plan. MELTON: Move approval. DALY: Second. VOTE: MELTON: Yes. DALY: Yes. LUKE: Chair votes yes. Being no further discussion, the meeting adjourned at 1:05 p.m. DATED this 27th Day of August 2008 for the Deschutes County Board of Commissioners. ATTEST: Recording Secretary Den R. Luke, Chair Tammy (B %y) M n, Vice Chair M chael M. Daly, Co issioner Minutes of Board of Commissioners' Business Meeting Wednesday, August 27, 2008 Page 17 of 17 Pages Deschutes County Board of Commissioner:. 1300 NW Wall St., Bend, OR 97701 -1960 (541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.org BUSINESS MEETING AGENDA DESCHUTES COLTNTY BOARD OF COMMISSIONERS 10:00 A.M., WEDNESDAY, AUGUST 27, 2008 Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend 1. CITIZEN INPUT This is the time provided for individuals wishing to address the Board, at the Board's discretion, regarding issues that are not already on the agenda. Citizens who wish to speak should sign up prior to the beginning of the meeting on the sign -up cards provided. Please use the microphone and also state your name and address at the time the Board calls on you to speak. PLEASE NOTE. Citizen input regarding matters that are or have been the subject of a public hearing will NOT be included in the record of that hearing. 2. THE READING of a Proclamation, Declaring September National Preparedness Month — Shannon Dames, Health Department 3. CONSIDERATION of Chair Signature of Document No. 2008 -476, a Notice of Intent to Award Contract Letter for the Knott Landfill 2008 Rock Removal Project — Timm Schimke, Solid Waste Department 4. CONSIDERATION of Chair Signature of Document No. 2008 -481, a Notice of Intent to Award Contract Letter for Providing and Erecting Two Metal Storage Buildings — Roger Olson, Road Department 5. CONSIDERATION of Signature of Resolution No. 2008 -030, Initiating the Vacation of a Portion of Nelson Road — George Kolb, Road Department 6. CONSIDERATION of Signature of Order no. 2008 -024, Vacating a Portion of Nelson Road — George Kolb, Road Department 7. CONSIDERATION of Signature of Document No. 2008 -485, a Memorandum of Understanding with the Urban Renewal Agency of the City of Redmond to Exchange Land Related to the Becky Johnson Center — Erik Kropp, Deputy County Administrator Board of Commissioners' Business Meeting Agenda Monday, August 18, 200f' Page 1 of 7 Pages 8. A PUBLIC HEARING and Consideration of Signature of Order No. 2008- 078, relating to Hospital Revenue Bonds (Cascade Healthcare Community, Inc.) Issued by the Hospital Facility Authority of Deschutes County — Marty Wynne, Finance; Cascade Healthcare Community, Inc. Representatives 9. CONSIDERATION of Signature of Resolution No. 2008 -124, Awarding a Contract for Architectural Services related to the Design of a Mental Health Residential Treatment Center as a Contract - Specific Special Procurement — Susan Ross, Property and Facilities 10.CONSIDERATION of Signature of Document No. 2008 -473, an Intergovernmental Agreement with Central Oregon Intergovernmental Council and Local Cities and Counties to Conduct an Endangered Species Act Fish Risk Assessment for Central Oregon — David Inbody, Administration 11. A PUBLIC HEARING (continued from August 6, 13 & 18), and Consideratior:. of First Reading of Ordinance No. 2008 -025, Making Certain Determinations and Findings Relating to and Approving the Bend Municipal Airport Urban Renewal Plan (Plan and Report) — Dave Kanner, County Administrator; John Russell, City of Bend 12. A PUBLIC HEARING (Continued from August 18) and Consideration of Signature of Resolution No. 2008 -119, Submitting to the Voters a Proposed Ordinance to Increase the Transient Room Tax Rate to 9% - Dave Kanner, County Administrator CONSENT AGENDA 13. Signature of Document No. 2008 -477, a Space Lease with Portland State University (portion of Juvenile Community Justice Building) 14. Signature of Document No. 2008 -478, a Lease with All American Timber Co. for Bare Land in the La Pine Industrial Park 15. Chair Signature of Document No. 2008 -475, Request for Reconveyance (Paid Loan) 16. County Administrator Signature of Document No. 2008 -448, an Amendment to a Lease Agreement with Mocha Janes, LLC Board of Commissioners' Business Meeting Agenda Monday, August 18, 2008 Page 2 of 7 Pages 17. Signature of Resolution No. 2008 -125, Transferring Appropriations to the Crime Prevention Services Fund 18. Approval of Minutes: • Business Meetings: August 6 • Public Hearings: July 7 (La Pine Groundwater); July 21 (Bend Transportation District) CONVENE AS THE GOVERNING BODY OF THE SUNRIVER SERVICE DISTRICT 19. CONSIDERATION of Signature of a Letter Appointing Stephen Hamilton to the Sunriver Service District Managing Board, through August 31, 2011 20. CONSIDERATION of Signature of a Letter Appointing Bob Wrightson to the Sunriver Service District Managing Board, through August 31, 2010 CONVENE AS THE GOVERNING BODY OF THE 9 -1 -1 COUNTY SERVICE DISTRICT 21. CONSIDERATION of Approval of Accounts Payable Vouchers for the 9 -1 -1 County Service District for two weeks CONVENE AS THE GOVERNING BODY OF THE EXTENSION /4 -H COUNTY SERVICE DISTRICT 22. CONSIDERATION of Approval of Accounts Payable Vouchers for the Extension/4 -H County Service District, for two weeks RECONVENE AS THE DESCHUTES COUNTY BOARD OF COMMISSIONERS 23. CONSIDERATION of Approval of Accounts Payable Vouchers for Deschutes County, for two weeks 24. ADDITIONS TO THE AGENDA Board of Commissioners' Business Meeting Agenda Monday, August 18, 200fi Page 3 of 7 Pages Deschutes County meeting locations are wheelchair accessible. Deschutes County provides reasonable accommodations for persons with disabilities. For deaf, hearing impaired or speech disabled, dial 7 -1 -1 to access the state transfer relay service for TTY. Please call (541) 388 -6571 regarding alternative formats or for further information. FUTURE MEETINGS: (Please note: Meeting dates and times are subject to change. All meetings take place in the Board of Commissioners' meeting rooms at 1300 NW Wall St., Bend, unless otherwise indicated. If you have questions regarding a meeting, please call 388- 6572.) Monday, August 25, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Wednesday, August 27, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Thursday, August 28, 2008 5:00 p.m. Joint Meeting of Board of Commissioners and Planning Commission Monday, September 1, 2008 Most County offices will be closed to observe the Labor Day Holiday Wednesday, September 3, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Thursday, September 4, 2008 10:00 a.m. Quarterly Meeting with District Attorney 11:00 a.m. Quarterly Meeting with Community Development Department 1:30 p.m. Quarterly Meeting with the Road Department Board of Commissioners' Business Meeting Agenda Monday, August 18, 200E Page 4 of 7 Pages Monday, September 8, 2008 3:30 p.m. Regular Meeting of LPSCC (Local Public Safety Coordinating Council) Wednesday, September 10, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Thursday, September 11, 2008 7:00 a.m. Regular Meeting with the City of Redmond Council, in Redmond 11:00 a.m. Quarterly Meeting with Mental Health Department Wednesday, September 15, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) 5:30 p.m. Joint Meeting with City of Bend Council, at the City Thursday, September 17, 2008 8:00 a.m. Public Affairs Counsel Conference Call — Legislative Update 1:30 p.m. Administrative Work Session — could include executive session(s) 5:30 p.m. Public Hearing on Aspen Lakes Text Amendment Thursday, September 18, 2008 9:00 a.m. Semi - annual Meeting with the County Clerk 10:00 a.m. Quarterly Meeting with Community Justice Monday, September 22, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Wednesday, September 24, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Board of Commissioners' Business Meeting Agenda Monday, August 18, 2008 Page 5 of 7 Pages 1 . _1 \1 11.111. Thursday, September 25, 2008 9:00 a.m. Quarterly Meeting with Fair & Expo Center 10:00 a.m. Semi - annual Meeting with Assessor 11:00 a.m. Quarterly Meeting with Commission on Children & Families Monday, September 29, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Wednesday, October 1, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Monday, October 6, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Wednesday, October 812008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Wednesday, October 15, 2008 1:30 p.m. Administrative Work Session — could include executive session(s) Monday, October 20, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Wednesday, October 22, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Board of Commissioners' Business Meeting Agenda Monday, August 18, 2008 Page 6 of 7 Pages Monday, October 27, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Wednesday, October 29, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Monday, November 3, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Wednesday, November 5, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Thursday, November 6, 2008 8:00 a.m. Regular Meeting with Sisters City Council, Sisters City Hall 9:30 a.m. Regular Meeting with Judge Fadeley, Sisters Monday, November 10, 2008 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Wednesday, November 12, 2008 8:00 a.m. Conference Call, Public Affairs Counsel (State Lobbyist) 10:00 a.m. Board of Commissioners' Meeting 1:30 p.m. Administrative Work Session — could include executive session(s) Thursday, November 13, 2008 7:00 a.m. Regular Meeting with the City of Redmond Council, in Redmond Board of Commissioners' Business Meeting Agenda Monday, August 18, 24)08 Page 7 of 7 Pages { BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest ` 4=t-- Date Name ∎.v -b ' CO/L/24- — 07{141.\ i/vtC Address Phone #s c} -7-.11 6 E -mail address [i/ In Favor Neutral /Undecided Submitting written documents as part of testimony? TES Opposed Yes ra.N 1 BOARD OF COMMISSIONERS' MEETING Agenda Item of Interest Name REQUEST TO SPEAK ee-o,ecf Date % O U Address lid /// //J1 WeL /no/to, •2 ,97Ia Phone #s 6171/ W - 3 c i E -mail address a g-O ivil) �; ' @ 3k78 CA 4a L e . 71/In Favor Neutral/Undecided Submitting written documents as part of testimony? Opposed Yes rf No BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest s ' ° 4A, v, ° Date moo_ Name 1/.i& e 1 2 Address C 4'64eMe- 1& s � 4-1`1'6676e1/ ®, 97/7 Phone #s 9,11 E -mail address 1/64Witv, K/thrit' A e lee/Ai/Nat 4e'- yr--- In Favor Neutral/Undecided Submitting written documents as part of testimony? Yes Opposed BOARD OF COMMISSIONERS' MEETING Agenda Item of Interest Name REQUEST TO SPEAK Date Address Phone #s SST- 2-(S -ibis E -mail address /11 c GrU■ . G (ZG Favor Neutral/Undecided Submitting written documents as part of testimony? Yes Opposed ✓rNo BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest // = ; =, ,-� ': -rte / o :, % /Date Name Jo // Address �. Phone #s E -mail address In Favor Neutral/Undecided Submitting written documents as part of testimony? Yes BOARD OF COMMISSIONERS' MEETING Agenda Item of Interest Name REQUEST TO SPEAK Opposed Ur b a... R ,vc-c Late PaLvvuog_ik, Address Phone #s E -mail address In Favor Neutral/Undecided Submitting written documents as part of testimony? Yes Opposed No t BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest P Name OM Foky Date 2/) 7 Address f 1 2 w _ 1 In / )S Phone #s 41 - 32. 6?7Th E -mail address In Favor c- F T /- Neutral/Undecided Submitting written documents as part of testimony? Tp. Yes BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest / / Date 7 Name m/K6 "11 re Opposed No Address /9 ( c 2 ! DfC-= v' c_A, Phone #s i k E -mail address In Favor Neutral /Undecided Submitting written documents as part of testimony? %I Opposed Yes > No BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest ,1 Name Address Date C- o'j Phone #s E -mail address In Favor Neutral/Undecided Submitting written documents as part of testimony? Yes Opposed No TES BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest Zw f c► Name Address 6I5 7h' nc►� �-. Date d 27 b 86027 s 0,(5,01 /e az 97070 Phone #s S a3 7e3- /471 /3 S 3 - 703 —.210-0 (cc -t E -mail address a r� J Q p� --eg6h /r)� In Favor Neutral /Undecided Submitting written documents as part of testimony? V Yes BOARD OF COMMISSIONERS' MEET REQUEST TO SPEAK Agenda Item of Interest ` rte, s''- ("wt 44.. Name Address 33(.0c Opposed No Date Phone #s S� ) - ci 0 E -mail address In Favor Neutral/Undecided Opposed Submitting written documents as part of testimony? es No { BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest ' %-16--i/n Name gelut Address en. c ec 1 ) /L) . 97 7b ' Phone #s��' E -mail address In Favor Date Neutral/Undecided Submitting written documents as part of testimony? Yes BOARD OF COMMISSIONERS' MEETING Agenda Item of Interest Name }}-/2 Address c 7L/ t4) '74 X-144-erix Phone #s 5% - 5.5,3s REQUEST TO SPEAK /2 Ve-a 7",2 Opposed No Date 8 E -mail address (hri In Favor Neutral /Undecided Submitting written documents as part of testimony? Opposed Yes 71, No is BOARD OF COMMISSIONERS' MEETING Agenda Item of Interest REQUEST TO SPEAK /Z Name 21 � � �"� 4 e Address 6 i ��� t ✓I,� �., Date / Phone #s E -mail address In Favor Neutral /Undecided Submitting written documents as part of testimony? Yes BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest TkAA.�5. k7;j.. --A 4-\/((p /54E1 ,/ (4. 7 St() Ll(W Name Address Rt 14,-d iv/ Opposed Date Phone #s E -mail address In Favor AL5‘40/0 ` LA/c .v. Neutral/Undecided Submitting written documents as part of testimony? Yes Opposed No BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Agenda Item of Interest T -X Date S • 2 -4° 0g ' Name Address Phone #s A a. n H uckt_ 44 (n X01 S i -POweAn • is ► :6.-mod-) Off,.. Tr) 02_ E -mail address In Favor 2c 27°x') CactlivaQ)14.4-t-c,60-1-votior-co4 6owl Neutral /Undecided LX Opposed Submitting written documents as part of testimony? x Yes BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK No Agenda Item of Interest Date Name 5Qs w S ( Address hA[Lu.i'Ll-,,z,Zz Oct— cR72.- Phone #s �S — E -mail address c �– f� �lC� ` ,� -� C �•nr-Z In Favor Neutral /Undecided Submitting written documents as part of testimony? JJ Yes Opposed No MEMORANDUM DATE: August 26, 2008 Road Department TO: Board of County Commissioners Dave Kanner, County Administer FROM: Tom Blust, Director RE: Transient Lodging Tax / Road Maintenance Costs 61150 SE 27th St. • Bend, Oregon 97702 (541) 388 -6581 • FAX (541) 388 -2719 The purpose of this memo is to provide additional background information with regard to the use of Transient Lodging Tax revenue for the maintenance of tourism related roads in the county. Attached is a table listing county maintained roads that provide primary access to recreation resources and tourist destinations within Deschutes County. These tourism related roads make up approximately 13% of the county's total road mileage (106 miles of 830 total road miles). Historically, the County has relied on funding from federal timber payments to help maintain these roads. The loss of county timber payments (Secure Rural Schools and Community Self - Determination Act of 2000) has resulted in a decrease of approximately $3.0 million in road maintenance funding. These federal funds have not been replaced by any other source of funding. Finding an alternative source of funding to meet the maintenance needs on these roads is vital to the areas tourism industry. It should be noted that county general funds derived from ad valorem tax levies may not be expended on roads or bridges (ORS 360.705 (3)). To my knowledge, the county has not approved any serial levy dedicated to roads. "Enhancing the lives of citizens by delivering quality services in a cost - effective manner." Road Name Tourism Related Roads in Deschutes County From To Attraction Length Annual Maintenance (mi.) Cost Burgess Rd Cascade Lakes Hwy Crooked River Dr River Summit Dr. (Rd. 45) Paulina Lake Rd Pine Mountain Rd Skyliners Rd South Century Dr Three Creek Rd FS Boundary Mt. Bachelor Wilcox Ave FS Boundary Highway 97 Highway 20 Bend City Limits Deschutes River Sisters City Limits South Century Dr Klamath County Line End County Maint. Century Dr End County Maint. End County Maint. End County Maint. Burgess Rd End County Maint. Access to Cascade Lakes Cascade Lakes, Three Sisters Wilderness Smith Rock State Park Mt. Bachelor /Cascade Lks. Rec. Paulina -East Lake, Newberry National Volcanic Monument Pine Mountain Observatory Tumalo Falls, Deschutes National Forest Access to Cascade Lakes Three Creeks Lk. /Sisters Wilderness 6.9 38.9 1.1 13.7 18.7 3.3 8.4 10.9 3.7 $80,040 $451,240 $12,760 $200,000 $216,920 $16,500 $97,440 $126,440 $42,920 Total Miles Total Annual Maintenance Cost 105.6 Note: annual maintenance cost is the average annual cost to maintain roads over a projected 20 -year life cycle. Costs include maintenance activities such as: chip sealing, paint striping, shoulder work, pavement overlays, and snowplowing & sanding. Costs are derived from historical maintenance treatment costs and are adjusted to 2008 dollars. Winter maintenance costs on River Summit Drive are higher due to the elevation and the need to keep open all winter. $1,244,260 Three Sister Conference Center at Deschutes Fair & Expo Universal Criteria of IACC IACC, International Association of Conference Centers reviews Universal Criteria to ensure that Conference Centers offer the current best practices of the Industry. Below are the criteria that are reviewed and the qualifications of The Three Sisters Conference Center at Deschutes Fair & Expo. Priority of Business 1. Three Sister Conference Center has 33,736 s.f. of conference center space 2. Three Sister Conference Center is non - residential. Total Revenue for the Three Sisters Conference Center; Middle Sister, North Sister & South Sister for Calendar year end 2007 was $317,694.50. Total Revenue Summary for event category; Conference, convention, meetings seminars and trainings total for same time frame, Calendar year end 2007 was $278,339.90. 87% of total sales from the Three Sisters Conference Center were generated from conference business. 3. Group Sizes vary from 25 — 10,000 4. Three Sisters Conference Center offers and actively promotes packages plans for all conference business including room, customized set up of events based on planners criteria, am and pm break service, breakfast — lunch — dinner. Conference Center Design 5. Three Sisters Conference Center is non - residential. Leisure areas are separate from conference rooms. 6. Three Sisters Conference Center has three main halls with 10 additional separate break out rooms for concurrent session. Main halls meet the criteria of at least one dedicated main conference room that can contain a minimum of 1,000 sq. feet and at least three dedicated conference rooms without moveable walls. 7. Conferences that have multi -day meetings can store materials overnight in productions offices within conference center. 8. Three Sisters Conference Center offers a full inventory of equipment to set ergonomically. Chairs offered are fully upholstered. 3 Types of chairs offered measuring 18" tall — 15" wide and 16" deep to a variable 18 " -21" tall 20" wide with arms that swivel. Page 1 9. Three Sisters Conference Center offers sufficient inventory of tables to set no less than 60% of meeting space with required measurements. 10. Lighting meets controllable level 50 -70 ft. candles. 11. Three Sisters conference Center has individually controlled climate controls. 12. Walls have surface suitable for Flip Charts 13. Acoustical rating for sound transmission meets noise isolation class for all walls 14. Ambient Sound levels comply with noise criteria for reverberation time and frequencies. 15. Built in house sound is available in all rooms over 1,000 square feet. 16. Each main hall has electric built within the floor on 20' square for use in tradeshow display and set up. Entire facility is wireless connectivity for internet and each room has ports for phone lines. 17. All Conference Rooms have unobstructed view and are column free. Conference & Business Services 18. Three Sisters Conference Center staff includes skilled planners proficient in room setup, special event planning, Tech support and services 19. Designated Staff are assigned to each group 20. Three Sisters Conference Center's Administration Center can provide office services, workstations, wireless internet access, fax services, paper shredder, and photocopying, shipping supplies as required by Conference Attendees. Food & Beverage 21. Customized separate dining areas are available specifically for convenience of conference attendees. 22. Customized dining is scheduled at flexible times for conference center attendees offering Breakfast, AM Break Service, Lunch, PM Break Service, Social Reception and Dinners. 23. Continuous refreshment service is made available outside of meeting rooms upon request. Technology 24. On -site AV technology is packaged for Conference Attendees upon request. 25. Conference Center packages all necessary AV equipment for Attendees upon request. 26. Three Sister's Conference Center provides a skilled Technician for set up, operation and instruction of all AV Equipment. Guest Rooms 27 & 28 Not applicable to non - residential centers Page 2 Ancillary Conference Centers 29. Three Sisters Conference Center is clearly signed and names so that it is differentiated from the remainder of the Expo Center. 30. Signage is displayed with the name of the conference center at the entrance. 31. Public entrance that is separate from remainder of the facility at Main Gate. 32. Each Conference Hall has a separate foyer for reception and lobby with box office. 33. Have public restrooms in each of the conference halls. 34. Employees a conference planner dedicated to the Conference Center. Page 3 To: Deschutes County Board of Commissioners From: Deschutes County Lodging Operators Date: August 23, 2008 Re: Proposed increase in Deschutes County Transient Lodging Tax As you heard during the public hearing held on August 20, 2008, and through the course of accepting public comment, there is considerable concern over the County's proposal to increase the transient lodging tax (TLT) from 7% to 9 %. It is important to clarify that while the business representatives you've heard from agree that they are very sensitive to any proposal to increase the tax —due to current economic conditions and the varying effects an increase may have on operations based on their book of business, guest mix, business model, etc. —we can all agree that Deschutes County and rural counties all over the state are faced with challenging economic realities. The balance between fiscal obligations and the demand for services no doubt creates challenges for the Board. There is a solution, however, that we would not oppose that will generate additional revenue for Deschutes County and focuses on growing our way out of these difficult economic times. Our compromise solution consists of several key strategies: • A 1% lodging tax increase that will not take effect until January 1, 2010; • New revenues derived from any increase in the Deschutes County TLT need to be invested where they will yield the highest return; • The Central Oregon Visitor Association (COVA) is the appropriate organization to administer programs derived from at least 70% of new revenues; • Deschutes County Board of Commissioners could establish a Visitor Development Fund (VDF) which would be administered by COVA and funded with a portion of new revenues derived from an increase in the Deschutes County TLT (a draft concept is attached); • Visitor Development Fund monies are awarded through a matching grant process and directed specifically for use in targeting new or increased conventions, events, conferences and other large group /meeting business like some of those held at the Deschutes County Fair and Expo Center; • A portion of new revenues derived from an increase in the Deschutes County TLT could be directed specifically for use by COVA in targeting large conventions, events, conferences and meeting business like those that could be held at the Deschutes County Fair and Expo Center; • Any new revenue derived from an increase in the Deschutes County TLT and administered by COVA should be in addition to existing Deschutes County revenue currently allocated to COVA to fulfill their core mission; • As outlined in state statute, up to 30% of the new revenues may be used to fund county services, including roads. In the spirit of partnership, we look forward to working with the Deschutes County Board of Commissioners to fully develop a solution for the County, the tourism industry and all of Deschutes County. Tbfn Luersen NW Regional Managing Director Lowe Hospitality Group J: Lyche " arketing JELD -WE Communities Jim Kinney General Manager Seventh Mountain Resort colt Pence Owner RE /MAX Sunset Realty Larry owning President Discover Sunriver Vacation Rentals Penny Bennington Owner Bennington Properties Loy mly Ed Willard President & General Manager Principal Black Butte Ranch Sunray Vacation Rentals, Inc. Rich Hadley Principal Mountain Resort Properties Luersen, Tom From: Sent: To: Cc: Board of Commissioners, Luersen, Tom Sunday, August 24, 2008 10:03 AM 'Dennis Luke'; 'mike_daly @co.deschutes.or.us'; 'tammym @co.deschutes.or.us' ' dave_kannar @co.deschutes.or.us' I want to summarize my position, on behalf of Sunriver Resort, on the discussion on the TLT tax increase proposal in preparation of the meeting on Monday. I am appreciative of the dialogue and openness to discuss the issue. I do wish we had engaged in the conversation about the proposal sooner rather than feeling somewhat compressed with time to respond. We have met with Dave Kannar multiple times but had not seen the written proposal until our first meeting with you in August, which personally, due to business conflicts like the JeldWen Tradition, has made it difficult to dedicate the appropriate time to this discussion. 2008 is proving to be a most challenging year for all of us. While transient tax revenues appear through Dave Kannar's number to be up or minimally static to last year, what is obvious from the Smith Travel Research data Dave has been provided, rooms sold is down. This is the critical metric which indicates the status of our businesses. Revenues, tracked through the county, only relate to "room revenue" and other fees associated like "housekeeping fees' that are now taxed ( different from several years ago), and not all revenue. For example, at Sunriver Resort, Room Revenue is only a small portion of our revenue base; golf, food and beverage, spa, club memberships, recreation, retail and others riake up the full story of revenues. There is no question, the revenue base, including room nights sold, is down in 2008 ..to a level that is the lowest in some years. While there is no certainty to the future, it is expected and forecasted that 'the industry will be in this low period for some time. Further compounding these tough times, is that almost all of the lodging operators in Deschutes County, are connected strongly to the real estate industry. Many of us operate lodging businesses that include management services of houses and condos. The down cycle of the real estate market is clearing challenging us all. Although I can not speak for the others on the following comment, I can tell you Sunriver Resort is closely evaluating our operating expenses, since revenues are down, and are making difficult decisions regarding employees, payroll anc: related. For these primary reasons, I believe an increase to the Transient Lodging Tax to 9% as proposed is poorly timed and an excessive increase. The increase of 9% from7% is a 28.5 increase. The timing proposed will likely hit the industry at the worst time in business levels since September 11, 2001. While a 'no tax increase' at this time seems most appropriate, I have attempted to counter your proposal with an approach of partnership and sensitivity to County challenges with their own financial matters. Consequently, I have suggested a 1% TRT increase is more palatable than the 2% and further suggested it be delayed until the market is predicted to start to rebound, which is January 1, 2010. Moreover, I strongly support that the 70/30 split or allocation of funding be maintained and that COVA be the recupient of county funds which reinvests the TRT receipts back into Tourism. The discussions we have had regarding the Fair and Expo Center and whether it is a tourism related facility or if it's substantial purpose is to promote tourism as outlined in the HB2267 language, remains unresolved. I believe the Fair and Expo Center does promote tourism, without doubt. However, I am unclear if it meets the "substantial" definition test. Rather than arguing or debating on the emotional side of this topic, it seems appropriate to measure this by survey or traffic studies that likely could establish a consensi is based upon the data yielded from such data. The allocation conversation regarding the use of funds from the 709, from the TRT receipts is a more challenging discussion. Obviously, tourist as defined by the legislature, use all our road!. Again, the issue seems to be 'how much ' do they use it compared to the residents or non - tourist in the area. I bel eve the 30% allocation of TRT is the best use of funds for roads and does not challenge the statewide discussion of Raids being allocated from the 70 %. The precedent the road allocation from the 70% threatens the reinvestment of TR1 taxes into marketing and promotion for the state. Clearly, there are roads that lead to recreation assets, like Mt Bachelr r, Smith Rock, Lake Billychinook, airports and the like that predictably carry more tourist than other roads, but whether they carry tourist from out of the area, as defined by the legislature, is questionable and seems prudent if there is belief they do, a test or demonstration of that is the first step. I am certain you will hear these issues and likely others in the next meeting on Monday. I wanted you to hear from Sunriver Resort and my perspective in preparation of the meeting. I believe we, the lodging operators and the County, have worked exceptionally well together to create a vibrant community that leads this state in a model of collaboration that we should continue to leverage for future growth. The jobs our industry creates, the tax contribution including property and TRT, and the recreation our facilities have that improves the quality of life in this region, makes decisions which increase the price to the customer a very important decision and one that requires a full understanding of :he issues in doing so. Thanks t 2 To: Deschutes County Board of Commissioners From: Todd Davidson, CEO Travel Oregon / Oregon Tourism Commission RE: Deschutes County Lodging Operator Letter Commissioners: On behalf of the Oregon Tourism Commission, dba Travel Oregon, I want to thank you for the opportunity to provide perspective on the intent of HB 2267 in 2003 which later became codified as ORS 320.300- 320.350. At the time the House Bill was being debated in the Oregon Legislature, it is my recollection that the House Revenue Committee did acknowledge the impact that visitors and tourists have on local services, like public safety and transportation infrastructure — and that acknowledgement is precisely why the House Revenue Committee agreed on a compromise of affording up to 30% of any revenue attributable to a new or increased room tax for use on those services which are otherwise not eligible. The correspondence Representative Wayne Scott, Vice Chair of the House Revenue Committee in 2003, delivered to you during your public hearing last week captured the spirit and intent of that legislative debate. Additionally, we would like to provide our perspective on a proposal related to use of new or increased transient lodging tax revenue that was developed by lodging industry members in Deschutes County. The proposal I am referring to calls for establishment of a Visitor Development Fund, a dedicated resource for growing convention or group business and an additional resource for the Central Oregon Visitors Association to use for marketing. We believe the proposal for use of new transient lodging tax revenues with 70 °/ allocated to COVA for administration of a visitor development fund, for targeted marketing of convention or group business and for use in continuing to fulfill the core mission of the Central Oregon Visitors Association does appear to meet the intent of HB 2267 and ORS 320.300 -350. Thank you for your commitment to the tourism industry and for your continued partnership in helping to increase the economic impact of visitors for Deschutes County and all of Oregon. Sincerely, 1ODD DAvipS Oregon Tourism Commisssion, 670 Hawthorne SE, Ste 240, Salem, OR 97301, 503.378.8850, fax: 503.378.4574, www.travelore ;on.eom OREGON. WE LOVE DREAMERS.® OREGON ASSOCIATION August 18, 2008 Deschutes County Commissioners 1300 NW Wall Street, Suite 200 Bend, OR 97701 -1960 Dear Commissioners, The Board of Directors of Oregon Lodging Association and other travel and tourism industry leaders across the state continue to closely watch the Deschutes County room tax issue. During the 2003 legislative session, Oregon Lodging Association led a broad -based effort to pass House Bill 2267. This bill had the support of legislative leaders, Governor Kulongoski and the tourism industry at large. The intent of HB 2267 was twofold. First, the bill established a stable, dedicated funding source for the Oregon Tourism Commission (dba Travel Oregon). Second, the bill provides guidelines for new taxes passed at the city or county level. These guidelines include definitions for appropriate expenditures of at least 70% of any new transient lodging tax passed. Second, the bill allows for up to 30% of any new transient lodging tax passed to be used for city /county services. It is clear to those in the industry that any local infrastructure such as roads does not qualify under the definitions of tourism or tourism related facility. Rather, this type of expenditure could be made using the 30% allocation. Representative Wayne Scott, who carried the bill to the House floor in 2003, also provides additional insight as to the intent of the bill. As you've heard from those in the lodging industry in Deschutes County, the industry is bracing for a slowing economy. I ask that the Commission consider current economic conditions and what impact a tax increase may have on the industry. Deschutes County lodging operators recently met to develop a proposal for the Commission's consideration that includes a 1% lodging tax increase that would not take place until January 1, 2010. This proposal calls for the establishment of a Visitor Development Fund that could be administered by Central Oregon Visitors Association. The proposal further outlines uses for no Tess than 70% of any new lodging tax revenues. This proposal is fair and considers county needs by allowing up to 30% of new revenues be used for county purposes. Additionally, it focuses on opportunities for the industry to grow its way out of tough economic times. I encourage your support of this proposal. Thank you for your consideration. Please contact me if you have any questions. Sincerely, J. Gregg Mindt President & CEO cc: Deschutes County Lodging Operators OLA 1 8600 SW Salish Lane, Suite 3 I Wilsonville, Oregon 97070 I T: 503- 783 -2797 I F: 503- 783 -2798 I E: info @oregonlodging.con ore gonlodgiitg.c0111 Page 1 of 4 Dave Kanner From: Laura Harvey [retreats @sunriverretreats.com] Sent: Friday, August 22, 2008 5:17 PM To: Tammy Melton; Dennis Luke; Mike Daly; Dave Kanner Cc: dsmeage @sunriverchamber.com; tarry@discoversunriver.com; Luersen, Tom; Jim Subject: ROOM TAX INCREASE OPOSITION Dear Dennis, Tammy, Mike and Dave, I am contacting you today to Suggest that the County Commissioners HELP the private sector RE- HABILITATE OUR FAILING CENTRAL OREGON TOURIST INDUSTRY. Raising the County Room Tax for Visitors to Central Oregon is defiitely not the answer to the Countys' Inability to Plan ahead for the funding of the County Government services or the welfare of its Citizens. An over all room tax increase to total a 10% tax will definitely contribute to the further decline of our already jeprodized and fading Tourist Industry, the very Industry that keeps Central Alive, which used to thrive. Raising the County Room Tax will only serve to further decrease County Revenue, as a self defeating death wish for our County with more uninteded consequences than benefits to the County! I for one, turned one of my large vacation rental homes into a long term rental due to lack of combined reservations. This insightful move on my part now produces no tax revenues to the County. The Alternative was to suffer the anticipated "to much dead time" in my combined rental homes. Presently the visitors are doing us a favor by driving to our Central Oregon Paradise. The economy has taken a downturn in the United States and it is obvious that citizens are staying home, their way that they conserve their finances. Unstable gas prices and the media have certainly taken a devistating toll on the economy of Central Oregon. As Republicans, it is a given that we do not raise taxes during hard Economic Times. Well, we are in a spiral of hard Economic Times here. Evidence of this is everywhere around us. Driving through Bend on Highway 97 shows us to much devistation with now empty business, creating more buildings that cannot be rented. Recent well known Business Closures include: Country Health Food Store Denny's Restaurant McManons Furniture Store Kayo's Restaurants Ernestos' Restaurants Re /Max on Franklin - Real Estate M.Jacobs Furniture Store Re /Max Sunset Sunriver Business Park vacating their Real Estate / Vacation Rental Home Building Just to name a few. We certainly do not need fewer Tourists. It is the Job of the County Commissioners to help the 8/25/2008 Page 2 of 4 Businesses and Citizens that have supported this County. You need to be much more Creative! You have options at your disposal to start with cutting expenses, Vacation Rental Managers and Owners do not have options. I understand that the Sheriffs' Department now has a Permanant Funding Base, so just why are Sunriver Property Owners Paying the County for the Sheriff Dept. on our property taxes and also paying the Sheriffs Dept through the Sunriver Special Sheriffs Service District on our property taxes?????? There is definitely an over abundance of Sheriff Deputies acting as the Sunriver Police in Sunriver. The County Deputies certainly do not nor need to patrol Sunriver! A Calculation of tax savings for the County Offices to operate on a 12 hour, 4 days a week system should be looked at on the County Cost Savings Agenda. Overtime payments could certainly by eliminated by the County just as the Private Sector has had to do. If County Services Costs more when performed during the night, then schedule these Service during the day. Remove one County Employee from each and every road crew. Raise the timber cutting permits for fire wood. Contract the Private Sector to fight fires, rather than the County Employees, when applicable. Possibly there are many County functions that the Private Sector could do most likely at a much reduced rate, considering that the County PERS retirement is a definite drain on tax payer funds. Raise the overnight camping fee in the camp grounds and install a nominal fee for day parking at the Parks. Apply for more Government Grant Money from the U.S. Government and State for Services to the underprivileged business people many of whom may operate under the poverty level. Stop giving Property Tax Free land deals to intice business to locate in Central Oregon. Charge inmates at the jail room and board for their stays. Go an extra year or two on pruchases of County vehicles, desks, computers and other luxuries. Cancel all magazine subscriptions. Retreive County Credit Cards from all Employees and put them on a Voucher System. Use the "Meetings On Line ", "Go To Meetings" Computer System instead of Airplane Trips, per diem and Hotel Rooms. 8/25/2008 Page 3 of 4 Take Mike Daly off his Expense Account! Replace the Community Development Department. I am confident that our Esteemed County Commissioners know of many more areas of the County Government System and budget where cost saving measures can easily be initiated other than the few simple Creative cost savings that a very small business person such as myself knows about. Our Housing and Vacation Rental Business must go through a recovery period, and no one knows how many more years this will take. In the mean time we are Commanding the County Commissioners to work with us to help us through this painful recovery period. For the Sunriver Area, it may take as much time as it takes SilverStar to make massive headway in the Construction of the New Sunriver Town Center. LOWERING THE ROOM TAX RATE, Promoting and Advertising this Revolutionary Event for the rest of 2008 and 2009 Just Might Result in Increased Tourism for Deschutes County which will thus increase the Room Tax Revenues provided by the Counties most prized businesses! In so doing, The County Commissioners will be the HEROS of the County and will have well served thousands of business people and employees, Citizens with an upswing in our Economic Decline!!! This approach would be a WIN -WIN Event and makes so much more sense than a Constricting, Detrimental Room Tax Increase! DESCHUTES COUNTY would then become a Model of Government Working with the Private Sector for the benefit of the Citizens to be used by Counties across the United States. This novel idea may be denied by our three Esteemed Commissioners, But the past ways of the County Commissioners have obviously not worked, so a New Approach is the only Appropriate move that is open to the Commissioners at this point. Mt. Bachelor also needs all of the help that it can get and has already set in motion reduced lift ticket prices in order to rejeuvinate their declining business. Considering that Brilliant Business People shephard Mt. Bachelor, I would suggest that our Commissioners follow their lead. I realize that you work very hard to run all of the complications of the County Business. A totally new approach to looking at the same situation day after day is a road that could really result in major benefits that have never been on the table before. I also wish to point out that "Staff' is not qualified to refer an opinion to raise the Room Tax on the Vacation Industry. The main and driving focus of "Staff' is focused entirely on their salary and ultimate Retirement income, so they are not able to see the BIG PICTURE, or PRODUCE NEW IDEAS OR APPROACHES to any problem. A new idea, in their minds, would jeprodize their Civil Service Job and Retirement income. You are receiving bad advise from the wrong advisers!!! You need to think about this fact of life and consider it with an open mind. To my limited knowledge, I do not know of one single successful business person or successful entrepreneur on your staff! As the entire County and all its Citizens benefit from our Tourism Industry, then it stands to reason that if the Commissioners only focus is to 8/25/2008 Page 4 of 4 "GET' more money into its coffers with no deep thinking involved, then the entire population of the County should share in this antiquated burden, to cover the County's Overspending and Old Habits when anticipated and foreseeable decreasing revenues were not planned for in advance by the Commissioners. The Industry that provides more than any other entity cannot be penalized for this oversight by the Commissioners. Please remember Dennis that Tourists used to come to Central Oregon, fall in love with the area and buy a home or two or future building site as I did. It would be Great to get these types of people to come to Deschutes County once again to help fill the County Coffers! I also Mimic Larry Browning's Letter email to the Commissioners! Laura E. Harvey Owner Sunriver Retreats P.O. BOX 3494 SUNRIVER, OR. 97707 541 - 593 -3162 RETREATS©SUNRIVERRETREATS.COM WWW.SUNRIVERRETREATS.COM 8/25/2008 August 18, 2008 Deschutes County Commissioners 1300 NW Wall Street, Suite 200 Bend, OR 97701 -1960 Dear Commissioners, I am the owner of Paintball Paradise and I am writing to express my concern over the proposed room tax increase. Our business relies on tourists and locals to succeed. Given the economic slowdown in Central Oregon —and across the state —I am concerned about the impact that any increase in the cost of travel will have on our business and employees. Before taking further action I urge you to remember that even slight changes can have an effect on my business. A decrease in spending by travelers can occur if they see an increase in their tax rate at hotels and resorts. I am aware that there has been talk of using new revenue for roadwork and I am also aware that state law says that any increases in the lodging tax must be allocated with no less than 70 percent of the increase being dedicated to tourism promotion and tourism related facilities. I don't believe that roads are a tourism facility and I don't support using any new money for this. Should a lodging tax even be considered, let the lodging industry and COVA help determine the best use of room tax for marketing promotions that would deliver the highest return on the investment to benefit the entire County. If we can get more people to come to Deschutes County, revenue for all businesses AND the county will increase. I respectfully recommend that you work with the lodging industry and other members of the tourism and hospitality industry to reach a solution that is amenable to all parties. Local hotel and resort operators are an integral part of Deschutes County and should be a part of finding a solution that benefits all of us. Thank you. Sincerely, /114444,&,t Annie Sinatra Owner, Paintball Paradise cc: Dave Kanner, County Administrator ECEOVE AUG 2 2 2008 BOARD OF COMMISSIONERS ADMINISTRATION Page 1 of 2 Dave Kanner From: Sent: To: Cc: Alana Audette [alana@visitcentraloregon.com] Tuesday, August 26, 2008 4:39 PM Dennis Luke; Tammy Melton; Mike Daly; Dave Kanner 'Luersen, Tom'; 'Todd Davidson'; 'Scott West; 'Gregg Mindt'; ' Audette'; 'Bennington'; Dan Despotopulos; 'Evet; 'Helmly'; 'Jay Lee'; 'Jay Lyche'; 'Kinney'; 'Nissen'; 'Oliphant; 'Pence'; 'Rathbun'; 'Willard' Subject: Deschutes County TLT statement Attachments: Deschutes_ County_ Visitor_ Development _Fund_(5board)[1].doc Dear Commissioners & Mr. Kanner, Thank you for the opportunity to engage in dialogue with the County regarding the proposed Transient Lodgirg Tax increase for Deschutes County. Over the past few weeks you have seen the commitment of your tourism industry partners to prioritize their schedules to participate in both Public Hearings and Work Sessions in the interest of working with the County to find a solution for the Deschutes County funding shortfalls. As residents of Deschutes County we represent not only specific business expertise, but a shared passion for the region's economic prosperity and sustainable future. We recognize the responsibilities of the Commission are vast and we have committed the tourism industry as a partner in developing solutions. The largest property tax collectors in the County are the Destination Resorts and real estate development partners who share in your commitment I:o the region's economic vitality and longevity. Representing COVA, let me first thank you for the partnership that we have enjoyed with the county for more than twenty -eight years. Put simply, this partnership has sustained for three decades because it is successful. My goal is to continually grow that working relationship to produce greater economic stability for Deschutes County and its residents. It is a privilege to serve as COVA's CEO and I am proud to know that our association has delivered on the County requirements for accountability and return on investment of the TRT invested with COVA. You have COVA's commitment to continue to serve the tourism promotion goals and objectives of the County with excellence and professionalism. You have received testimony from our industry partners confirming that COVA is both a recognized role model and leader in statewide and national tourism organizations. COVA is a valuable resource for Deschutes County and we want to continue to build upon our history of success. Every person at the table on the issue of a room tax increase is motivated by the shared commitment to support a healthy tourism industry and to invest tourism resources appropriately, allowing the optimum return on investment of lodging tax revenues for Deschutes County. With the lodging industry compromise support for a phase -in of the proposed increase, it appears the single remaining difference in perspective between the County and the industry is in the allocation of the potential new TRT resources. For COVA, the highest and best use ,s that which will generate more tourism business, resulting in greater collections of total TLT overall, thereby benefitting all partners collectively. COVA is a County partner generating revenue for Deschutes County during a time of overall revenue decline. It is difficult to comprehend any decision that would direct excessive resources awayfrom a revenue generating partner toward a non - revenue generating program at a time when additional resources are in such dire need. The dedication of revenue - generating sustainability for tourism promotion was a primary goal of HB 2267 and one which the industry is passionate to communicate and defend. COVA has a nearly 30 -year track record of stimulating additional TLT resources for the County. We can look at the long -term history of collections and see the continued rise in collections, even in times of great travel upheaval and economic stress (9/11/01, dot.com crash of '02, etc.) It goes to reason that if the County increases the TLT and retains up to 30% for the General Fund as allowed in HB 2267; then dedicates the 70% intender: for tourism promotion to COVA; that you will be upholding a proven track record of the highest and best use of 1LT resources in what we know will be a challenging economic path in the next few years. I ask you to remain committed to COVA as the region -wide, authorized conduit to fund additional tourism 8/26/2008 Page 2 of 2 programs (ie: Fair & Expo Center, related tourism programs, museums, etc.) through a qualified grant program, whereby the criteria of HB 2267 will be applied to each applicant. This removes the County from a difficult and time - intensive grant process and provides all tourism partners equal opportunity to qualify for funding through a Visitor Development Fund process designed to fairly represent tourism throughout the County. (VDF draft proposal is attached for reference). COVA shares the County objectives for an economically healthy Deschutes County, including a cooperative relationship with our partners at the Fair & Expo Center, as well as a stable road maintenance system. The best way to achieve the economic goals for Deschutes County is to increase overall tourism revenue through additional overnight stays and increased visitor spending. The highest and best use of TLT to achieve additional overnight stays is through COVA's multi- tiered tourism marketing and promotion programs. Thank you for this opportunity to convey my recommendations. I plan to attend the Public Hearing on Wednesday at loam to submit my comments for the record. Alana Audette President & CEO Central Oregon Visitors Association 800 - 800 -8334 www.VisitCentralOregon.com alana @visitcentra_ loregon.com Central Oregon. Everything Under the Sun. 8/26/2008 Draft Concept Proposal for use of increased transient lodging tax and creation of Deschutes County Visitor Development Fund This program is based on a distribution formula for any increase in the Deschutes County lodging tax where 70% of new revenues are allocated to the Central Oregon Visitor Association (COVA) and 30% of new revenues are placed in County General Fund for use as the County Board of Commissioners deems most appropriate. It is important to the tourism industry that the existing COVA resource is protected and there is broad support for their efforts from lodging, restaurants, retail and others. 70% of new revenues would be allocated to COVA but directed as follows: a minimum of 60% to COVA General Fund; up to 25% to a dedicated Visitor Development Fund administered by COVA and established to support attracting large group, conventions and conferences; up to 15% to COVA specifically for use in marketing and attracting large group business, conventions and conferences to Deschutes County. Purpose of Visitor Development Fund The purpose of the Deschutes County Visitor Development Fund (referred to hereafter as VDF) is to ensure that the expenditure of revenues from a proposed increase in the Deschutes County transient lodging tax shall be expended to attract large group business, conventions and conferences to Deschutes County that maximize sales at lodging properties through a matching grants program. The funding mechanism for this VDF grants program would be the dedication of up to 17.5% of any increase in the Deschutes County Lodging Tax (up to 25% of the 70% of new revenues allocated to and administered by COVA). The County Board of Commissioner will create a VDF Board of five members to establish provisions, criteria and application materials, review grant applications, and grant awards to eligible applicants for projects that contribute to the development and improvement of the Deschutes County economy by means of the enhancement, expansion and promotion of the visitor industry, specifically focused on conventions, meetings and events that draw tourists from outside Deschutes County and maximize sales at lodging properties. VDF Board VDF Board will consist of five members: 1 Deschutes County Commissioner 1 Member of the Fairgrounds and Expo Center Board or their designee 1 Member of the Central Oregon Visitor Association Board 1 Lodging Industry representative from a property located within Deschutes County 1 Lodging Industry representative from a property located in unincorporated Deschutes County * *Lodging Industry representatives are to be appointed by COVA for first seating of VDF Board, thereafter they will be nominated by COVA and appointed by the Deschutes County Board of Commissioners Eligible Applicants Private companies, nonprofit groups or publicly funded organizations are eligible for Grants from the Matching Grants Program by completing the application process as established by the VDF Board. Applicants must demonstrate how their project will generate new or incremental increased hotel sales and generate return-on- investment. Eligible Activities Eligible projects that may be awarded Grants from the Deschutes County Visitor Development Grants Program include those that provide for improvement or expansion of tourism marketing programs, or development of new tourism programs or products designed to increase group meetings, conventions and events for greater economic impact to Deschutes County or an incorporated city within the county. Eligible activities for such projects may not involve construction of facilities, or modification of historic structures or items, but they do include, but are not limited to, any of the following that represent new or enhanced efforts, or other initiatives intended to increase large group meetings, conventions or conferences, as opposed to only the continuation or maintenance of existing programs, products or services: (1) Brochure production and distribution; (2) Media production and placement; (3) Informational tourism signage; (4) Video production and distribution; (5) Tourism event promotion; (6) Market research; or (7) Visitor services projects. Maximum Awards The VDF Board shall establish the maximum Grant amount in the applicant guidelines prepared for the VDF Grants Program. No more than 50 percent of the total cost of the project may be paid for with funds from the VDF Grants Program, such that the applicant must show a minimum one -to -one match, from private or public sources. Program Information (1) The VDF Grants Program will be administered by the Central Oregon Visitors Association. (2) At a minimum, the VDF Grants Program shall be undertaken every biennium, with awards granted on a competitive basis. (3) For an application to be considered for funding: (a) A match of at least 50% of total project cost (up to one -half of the match amount could be in- kind.) (b) A description of how the project is focused on increased group convention, event or conference activities within an economic development context. (4) Completed applications which meet the established criteria will be considered by the VDF Board for funding and ranked, with priority given to those projects which demonstrate the following: (a) Need, such as... What are the resources available to the applicant ?... What is the applicant's total project budget ?... Is the project unique? (b) Viability and Integrity of Project, such as... Is it clearly tourism business development ?... Will the project work ?... Is it a quality proposal with realistic funding expectations? (c) The Potential for Economic Impact on Deschutes County and/or cities within Deschutes County as a direct result of the project, such as... Is the project clearly going to stimulate and generate tourism economic development, in a new or enhanced way? (5) The Central Oregon Visitors Association will serve as the Administrator of the VDF grant program. Projects will be monitored by the Central Oregon Visitors Association, and a program report will be provided as requested by the Deschutes County Board of Commissioners. (6) Applicants who are awarded a grant by the VDF Board shall enter into a grant agreement with the VDF grant program administrator. Grantees shall maintain records sufficient for monitoring. The grant agreement shall include all timelines that must be observed by the Grantee. (7) When necessary, amendments may be made to the Grant agreement by mutual agreement of the Grantee and the Commission, such that: (a) Items subject to amendment may include but are not limited to substantial alteration of cost, scope, location, objectives, or timeframe of the approved activities or project funded by the Grant; and (b) Failure by a Grantee to gain prior approval from the VDF Grant Program Administrator (COVA) for substantial changes may be a cause for cancellation of VDF Grant approval. If VDF Grant approval is cancelled, the total grant amount awarded and paid to grantee is due in full to the VDF Grant Program Administrator net 45 days after receipt of cancellation notice. (8) Any Grant funds not used for an approved project shall be returned to the Visitor Development Fund pursuant to the grant agreement. (9) Projects must be completed within grant period stated at the time when the Grant is awarded. Funds not expended by the end of a biennium shall be returned to the Visitor Development Fund. Application Information and Time Frames (1) Applications shall be accepted at times specified and announced by the VDF Board. (2) To be considered, applications must be: (a) Signed by the presiding elected official of the city or county managing the project or the chairperson, President or CEO of the entity making the application; and (b) Received by the VDF Board during the application period specified by the VDF Board in its announcement. Application and Grant Management Information (1) The Administrator, Central Oregon Visitor Association, under the direction of the VDF Board, will prepare applicant guidelines for the program each biennium or grant period. The guidelines will address the required content of applications, project selection procedures, and basic administrative requirements. (2) The most current edition of the applicant guidelines for the VDF Grants Program shall be on file with the Deschutes County Board of Commissioners, and available at: ADRESS HERE (3) The Administrator shall prepare and provide the applicants with a checklist outlining which specific requirements shall be enclosed in their application packet. Page 1 of 2 Dave Kanner From: Jay Lyche [Jay @jeld - wencommunities.com] Sent: Thursday, August 21, 2008 9:54 AM To: Board Cc: Dave Kanner Subject: Written Testimony For Transient Lodging Tax Issue August 21, 2008 To the Board of County Commissioners: I am sorry I was not able to make it to the Public Hearing on Monday, but I wanted an opportunity to express my concerns about the proposed increase in the Transient Lodging Tax (TLT). Let me start by saying that I understand the difficult position the county is in during these hard economic times, and I am sympathetic to the hard choices that you must make. It is my hope that you will also understand that this is a very difficult time for the lodging industry. Under the current economic climate, I believe that any increased price pressure will have a harmful effect on business, and I am hopeful that you will take this into consideration. Through July, Eagle Crest's occupancy is off by 4% over the same period in 2007. July and August also saw increasing pressures to lower our prices to drive business. An increase in the tax would only exacerbate this problem. I strongly encourage the Board to refrain from referring the TLT increase to the voters at this time. Having said that, if the Board does decide to refer this issue to the voters, there are a few modifications that could be made that would make it easier for me to support. First, I would ask that the Board consider limiting the increase to 1%. Secondly, I would ask that the Board consider not implementing any increase until January 1, 2010. Eagle Crest has over 50% of their revenue that comes from group business. These groups generally sign contracts at least one year out. So, we already have a large amount of booked business for 2009. If the tax were implemented immediately Eagle Crest would end up having to pay the additional tax on these already booked groups. Finally, my largest concern is how the money is allocated. I feel that roads do not meet the definition cf "tourism related facilities" as spelled out in (ORS 320.350 (6)). Speaking for myself and Eagle Crest, we would strongly oppose any portion of the 70% of revenue that is dedicated to tourism and tourism related facilities going to maintain roads. Eagle Crest is a big supporter of the Fair & Expo Center (FEC). We benefit greatly from the larger groups that they bring in. However, I am not sure that they meet the legal standard for a "tourism facility" as spelled out in the law. It is my main concern that this money is allocated in accordance to the law, and I believe that it is incumbent upon the county to demonstrate that the FEC meets these requirements before they put anything on the ballot. I am also concerned that the money is being considered for the FEC's reserve funds. I believe that wit 1 our current economic climate, this is a horrible time to raise taxes to increase reserves. I know that the lodging industry and COVA have agreed to meet with the Fair Board to discuss ways to work togethe • to promote the marketing of the FEC. If money is going to go to the FEC I would be much more supportive if it was dedicated to promoting the FEC to groups outside the region. Ideally, I would like ° to 8/21/2008 Page 2 of 2 see these funds administered by COVA to the FEC. Finally, it would be my preference that the 70% of funds that go to tourism go to COVA. Under these difficult economic times, every dollar that is available should go to the highest and best use for promoting tourism to this region. It is my belief that COVA is the group that would provide the best return on investment on any marketing dollars spent. COVA has a long and successful partnership with the County. COVA's board is made up of a broad range of industry experts that helps ensure that all points of view are heard and that the money goes to the place where it will provide the highest return. If you have any questions, or I can provide any clarifications, please feel free to call me at 548 -9309. Thank you for your consideration. Sincerely, Jay Lyche Director of Marketing, Eagle Crest Resort This e -mail and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. This footnote also confirms that this e-mail message has been swept for the presence of computer viruses. www.JELD-WENCommunities.com www.eagle - crest.com www.runningy.com www.silvermt.com www.brasada.com www.ridgewaterproperties.com ***************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** 8/21/2008