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MEMORANDUM
DATE: June 5, 2014
TO: Deschutes County Board of Commissioners (BOCC)
FROM: Nick Lelack, Community Development Department (CDD) Director
Peter Gutowsky, Principal Planner
Peter Russell, Senior Planner
RE: Newberry Country Plan: Implementation Update
This memorandum is for BOCC information. No action is being requested.
SUMMARY
CDD is in the early stages of implementing Newberry Country: A Plan for Southern Deschutes
County.1 This memo summarizes CDD’s efforts to implement three projects, which are also
recognized as FY 2014/2015 Goals and Objectives.2 Applicable Newberry Country Plan goals
and policies for each project are also referenced below. The projects include:
1. Goal 11 Exception;
2. Transferable Development Credit (TDC) Advisory Committee; and
3. River access at Harper Bridge.
I. GOAL 11 EXCEPTION
Newberry Country Plan: Public Facilities
Goal 9 Partner with the Oregon Department of Environmental Quality (DEQ) to protect
groundwater and public health.
Policy 9.1 Explore opportunities for Goal 11 exceptions and the full range of advance
wastewater treatment opportunities, including but not limited to, the use of
onsite alternative treatment technology, centralized sewer systems and
cluster systems.
1 http://www.deschutes.org/Community-Development/Planning/Long-Range-Planning/Completed-Projects/South-County-
Plan-2.aspx
2 http://www.deschutes.org/Finance/Budget-and-Finance/Budgets/FY-2015-Proposed-Program-Budget.aspx. Pages 12 and 13.
Robust Economy Goal. Objectives #4 and #5; Management of Natural Resources Goal, Objective #1.
-2-
Implementation
The Planning and Environmental Soils divisions continue to support the Oregon Department of
Environmental Quality (DEQ) South Deschutes/Northern Klamath County Groundwater
Protection Project. DEQ, with the assistance of the Oregon Department of Land Conservation
and Development (DLCD), continues to finalize the burden of proof and a map of the affected
area to justify a Goal 11 exception.
Goal 12, Transportation, must also be met. A transportation study is necessary to comply with
the Transportation Planning Rule (TPR). A Goal 11 exception could enable approximately
1,500 high groundwater lots to develop. The lots are presently restricted from development due
to the State’s onsite wastewater rules. If a Goal 11 exception is approved the lots could then
hook up to a sewer, cluster, or similar public system. As most of the lots are zoned residential,
there would be 15,000 new daily trips generated from these lots or about 1,500 trips in the
morning peak and again in the evening peak hours. For context, 15,000 daily trips represent
about the same amount of traffic now carried on U.S. 97 just south of the Baker Road
interchange. DLCD is coordinating with the Oregon Department of Transportation (ODOT) to
determine if they can produce the traffic study. If ODOT is unable to produce it, the partner
agencies (County, DLCD, DEQ) will need to determine a funding source to pay for the
approximately $20,000 study, including such options as pursuing grant funding or sharing the
costs. Grant funding would extend the project at least 6-8 months.
Timeline:
Once County staff receives the justification for a Goal 11 exception and a transportation study, it
will take 10 weeks to schedule the first evidentiary hearing. Staff needs approximately 6 weeks
to complete the entire land use proposal and prepare public notices. Since this is a legislative
plan amendment, DLCD also requires a minimum 35 day notice to review the formal proposal.
II. RECONVENING TRANSFERABLE DEVELOPMENT CREDIT (TDC) ADVISORY
COMMITTEE
Newberry Country Plan: Land Use
Goal 4 Manage County-owned lands to meet community objectives.
Policy 4.4 In conjunction with the City of La Pine, evaluate and revise as needed, the
Transfer of Development Credit and Pollution Reduction Credit programs by
considering, at a minimum, the following:
a. Reconvening the Transfer of Development Credit Advisory Committee;
b. Analyzing the results of the program;
c. Understanding existing market trends and land development constraints
in the rural area and La Pine Neighborhood Planning Area; and
d. Exploring, if necessary, different alternatives for developing the La Pine
Neighborhood Planning Area that maximize revenues from the sale of
property to fund groundwater protection efforts.
-3-
Implementation
The TDC / Pollution Reduction Credit (PRC) program is aimed at protecting groundwater in
southern Deschutes County in conjunction with La Pine’s Newberry Neighborhood. TDCs, which
have been in place since 2003, are deeded restrictions on future property development. They
are acquired voluntarily in designated areas for the preservation of water quality and open
space. The acquisition of TDCs is one option for developers of new parcels in the Newberry
Neighborhood in the city of La Pine. Similarly, PRCs, which were added to the program in 2006,
certify the placement of a nitrogen-reducing septic system in qualifying areas. They may be
purchased as an alternative option to allow Newberry Neighborhood development. Revenue
associated with TDCs and PRCs, together with Newberry Neighborhood land sale proceeds and
other revenue sources, provide financial assistance to South County residents in implementing
actions which reduce the amount of nitrates potentially entering the groundwater and therefore
protect the source of drinking water in the area.
In addition to funding sewer feasibility studies on an as-needed basis, financial assistance from
this program has enabled rebates to be paid to South County property owners who have
installed nitrogen-reducing septic systems. Low interest cost-deferred loans have also been
made available to property owners to fund complete septic system replacement for those who
may not otherwise qualify for project financing.
TDC Advisory Committee
Deschutes County Code (DCC), Chapter 11.12 codifies the TDC Program (Attachment). DCC
11.12.040 specifically addresses the TDC Advisory Committee’s purpose, duties, and
membership. Committee members are selected by CDD based on the knowledge and expertise
that each member may contribute to the development of the TDC program.
The TDC Advisory Committee’s last meeting occurred in March 2007. They met nine times
between 2005 and 2007. As shown in Table 1, the committee consisted of the following
representatives:
Table 1 - Previous TDC Advisory Committee Representatives 3
Baldwin-Herndon Trust
Deschutes River Conservancy
Developer - Excavation / Finley Butte Aggregate
Developer - Pahlisch Homes
Excavator
Kerr Commercial Group
La Pine Community Action Team
Oregon Department of Environmental Quality
Oregon Department of Land Conservation and Development
Planning Commissioner – South County Region
Realtor
Soil Scientist / Sanitarian
South County Resident / Property Owner
3 Representatives from Oregon Department of Fish and Wildlife and Compass Commercial were formally invited to participate
but did not attend any of the meetings.
-4-
Staff wants to add the following two representatives to the committee:
o City of La Pine
o Deschutes County Citizens Actions Group (CAG)
Expanding the committee will help broaden the discussion as members determine if changes
are needed to the TDC program. CDD recently coordinated with the City of La Pine to
successfully transition land use permitting responsibilities from the County to the City. The
transfer became effective last January. The City is now administering zoning and development
review within its jurisdiction, which includes the Newberry Neighborhood, the receiving area for
TDCs. The CAG is an organization that promotes active participation in all aspects of
community development and decision-making in Deschutes County, specifically in the La Pine
basin.4 Members were actively involved in the creation of the Newberry Country Plan, adopted
by the BOCC in May 2013.
Timeline:
Staff anticipates contacting representatives this month and scheduling the first committee
meeting in August. Up to five meetings are planned from August through December.
Recommendations will be forwarded to the Planning Commission and BOCC in January 2015.
III. HARPER BRIDGE
Newberry Country Plan: Recreation
Goal 17 Encourage a variety of parks, trails and recreation options for South County residents
Policy 17.2 Collaborate with the La Pine Park and Recreation District, community
organizations, Sunriver and La Pine to provide safe and convenient river
access points, including:
a. Improving existing sites including those at or near Harper Bridge and
Maxwell Veterans Memorial Bridge; and
b. Assessing options for new or improved public locations.
Implementation
The Sunriver Owners’ Association is forming a task force to reach out to the various groups that
have expressed an interest in resolving the issues of parking and launching watercraft at Harper
Bridge. CDD will represent one of the task force members, which is expected to have an initial
meeting later this month.
Timeline:
The Harper Bridge Task Force is slated to complete its work by September.
IV. BOCC ACTION
No action is being requested.
Attachment: DCC Chapter 11.12, TDC Program
4 http://www.cagg.us/about-cag
Chapter 11.12. TRANSFERABLE DEVELOPMENT CREDIT PROGRAM
11.12.010. Definitions.
11.12.020. TDC Transactions.
11.12.030. TDC Sending Area Eligibility Criteria.
11.12.040. TDC Advisory Committee.
11.12.010. Definitions.
As used in DCC 11.12, the following words and phrases shall mean as set forth in DCC 11.12.010.
“Certificate of TDC Purchase” means a certificate from Deschutes County that documents the purchase or,
in the case of a PRC, creation of TDC(s).
“Department” means, for purposes of this chapter, the Deschutes County Community Development
Department.
“Existing Wastewater Treatment System” means a wastewater treatment system in use in the Sending Area
on May 31, 2006 that is not a Nitrogen Reducing System approved by Deschutes County.
Financial Assistance Fund” means whichever fund created by the County to aid property owners in
complying with the requirements to reduce the overall discharge of nitrogen into the basin groundwater of in
south Deschutes County.
“High Priority Deer Migration Corridor Area” means the area mapped in 2000 by the Oregon Department of
Fish and Wildlife which shows the area of priority protection for migrating mule deer within a larger
migration corridor acknowledged under statewide planning Goal 5. A copy of this map is on file with the
Department.
“Net Developable Acre” means the acreage in a tract of land in a Receiving Area calculated by subtracting
the acreage reserved for collector road right-of-way and community parks and open space from the gross
acreage of a subject tract.
“Nitrate Loading Management Model” means the groundwater model developed by the US Geological
Survey to determine the nitrate loading capacity of the drinking water aquifer underlying south Deschutes
County.
“Nitrogen Reducing System” means a wastewater treatment system that reduces nitrogen loading to the
groundwater in accordance with the Nitrate Loading Management Model and that is approved by Deschutes
County.
“Pollution Reduction Credit” (PRC) means the credit given for the Retrofitting of an Existing Wastewater
Treatment System or payment into the County’s Financial Assistance Fund.
“Receiving Area” means the area designated by the County where Transferable Development Credits are
required in order to purchase and develop a tract of land.
“Restrictive Covenant” means a legal instrument which places restrictions on future development on a lot or
parcel of land in the Sending Area.
“Retrofit” means to upgrade or replace an Existing Wastewater Treatment System in the Sending Area with
a Nitrogen Reducing System approved by the County.
“Sending Area” means the area designated by the County in which Transferable Development Credits may
be sold.
Chapter 11.12 (2009) 1
“TDC Report” means a report from a title company verifying title to and encumbrances on the subject
property.
“Transferable Development Credit” (TDC) means the credit given for a Restrictive Covenant granted to
Deschutes County restricting the placement of a septic system. on the subject property or a PRC.
(Ord. 2009-003 § 1, 2008;Ord. 2006-016 §1, 2006; Ord. 2004-007 §1, 2004; Ord. 2002-010 §1, 2002)
11.12.020. TDC Transactions.
A. Sale of TDCs from the Sending Area. Either Section B or C shall be followed for the creation of TDCs,
B. Restrictive Covenant
1. The property owner or any other interested person shall request verification from the County that
the subject property is eligible for a TDC.
2. The Department shall send the property owner or interested person written verification confirming
the number of TDCs the subject property is eligible for based on the criteria in DCC 11.12.030.
3. Upon mutual agreement of a sale between the property owner and TDC purchaser, the following
transactions shall occur:
a. The property owner shall provide a TDC Report to the Department.
b. If the TDC purchaser is other than the County then the property owner and TDC purchaser shall
sign a TDC Contract form provided by the County.
c. Upon Department review and approval of the TDC Report and receipt of payment of the
consideration in accordance with the County’s agreement with the property owner or the TDC
Contract pursuant to DCC 11.12.010(A)(3)(b), the County shall prepare a Restrictive Covenant
that restricts development on the subject property. This Restrictive Covenant shall be signed by
the County and the property owner. The County shall record the Restrictive Covenant.
d. Contemporaneously with the recording of the Restrictive Covenant, County shall provide the
TDC purchaser with documentation of the TDC purchase.
C. PRC.
1. The property owner or any other interested person shall request verification from the County that
the subject property is eligible for a PRC.
2. The Department shall provide the property owner or interested person written verification
confirming the subject property is eligible for a PRC based on the criteria in DCC 11.12.030.
3. The County shall grant a PRC to a developer in the Receiving Area if the developer provides one of
the following:
a. A Retrofit, in cooperation with the property owner of a property eligible for a PRC, Existing
Wastewater Treatment System and documentation submitted to the County that includes proof
of ownership of the subject property, proof of consent of the property owner for the Retrofit,
and final County inspection of the Retrofit; or
b. Payment into the County’s Financial Assistance Fund the proportional cost established by
Board of County Commissioner Resolution for a Retrofit. The County’s fund shall be use d to
aid property owners in reducing the overall discharge of nitrogen into the basin groundwater of
in south Deschutes County.
.
D. Assignment of TDCs to the Receiving Area.
1. The total number of required TDCs, including PRCs, applicable to a subdivision in the Receiving
Area shall be established and made a condition of approval at the time of tentative plan approval.
2. The tract or lot shall be located within the La Pine Neighborhood Planning Area in the La Pine
Urban Unincorporated Community and be zoned Residential General or Residential Center. The
Receiving Area is identified on a map prepared and maintained by the Department.
3. TDCs shall be assigned to a lot or tract based on the Net Developable Acres at a rate approved by
Board of County Commissioner resolution.
Chapter 11.12 (2009) 2
4. PRCs shall be assigned to a tract at a rate established by Board of County Commissioner resolution.
5. The Board may, by resolution, adjust the number of TDCs required per acre or alter the factors for
which TDCs are required in the Receiving Area.
6. At the time of final plat approval , any remaining required PRCs for the partition or subdivision
shall be divided by the number of residential lots approved for the partition or subdivision.
7. The required PRCs and their cost for each lot shall be shown on the final plat.
8. Prior to issuance of a building permit for a residential lot in the Receiving Area, the Department
must have payment of the required number of PRCs for that lot.
E. Non-Residential Districts. Where permitted under DCC 18.61.050, uses in non-residential districts in
the Receiving Area do not require TDCs.
F. Right to Develop. If an owner of a lot or parcel of land eligible for a TDC chooses not to participate in
the TDC program, the owner shall not be restricted from developing said lot or parcel in accordance
with the applicable zoning standards in DCC Title 18, and any other applicable regulations, rules or
standards.
(Ord. 2009-003 § 1, 2008; Ord. 2006-016 §1, 2006; Ord. 2004-007 §1, 2004; Ord. 2002-010 §1, 2002)
11.12.030. TDC Sending Area Eligibility Criteria.
A. A lot or parcel that meets the following criteria is eligible to receive a TDC. The lot or parcel shall:
1. Be located within the “Sending Area” identified on a map prepared and maintained by the
Department;
2. Be no greater than two acres in area;
3. Be capable of being served by an on-site sewage disposal system that meets current Oregon
Department of Environmental Quality standards, as demonstrated by a satisfactory feasibility
evaluation for an on-site sewage disposal system or when the lot or parcel is shown as being eligible
for such system on the TDC Sending Area map; and
4. Not be developed with an existing sewage disposal system, or if developed with an existing sewage
disposal system, the landowner shall disable said system, or
5. Have received prior approval for a site evaluation or an installed septic system that has expired or is
no longer valid, or
6. Have an Existing Wastewater Treatment System eligible for a Retrofit.
B. TDCs shall be assigned to an eligible lot or parcel that meets the criteria in DCC 11.12.030(A), as
follows:
1. An eligible lot or parcel upon which a Restrictive Covenant is recorded shall be assigned one TDC.
2. An eligible lot or parcel located in the High Priority Deer Migration Corridor Area upon which a
Restrictive Covenant is recorded shall be assigned an additional one-half TDC.
3. An eligible lot or parcel upon which an Existing Wastewater Treatment System has been Retrofitted
shall be assigned one TDC.
4. The Board of County Commissioners may by Resolution revise the number of TDCs assigned or
the factors for which TDCs are assigned to eligible lots or parcels in the Sending Area.
(Ord. 2006-016 §1, 2006; Ord. 2004-007 §1, 2004; Ord. 2002-010 §1, 2002)
11.12.040. TDC Advisory Committee.
A. Purpose. The TDC Advisory Committee is an advisory committee whose purpose is to assist staff in
implementing the TDC program and to recommend to staff the means to accomplish the goals of
Regional Problem Solving insofar as the transfer of development credits from the Sending Area to the
Receiving Area are concerned.
B. Duties. The committee will advise staff in evaluating the TDC program for record keeping accuracy,
determine if program goals are being met, consider whether any changes to the TDC allocation criteria
in the Sending Area or TDC requirements in the Receiving Area are advisable, or if any other revisions
Chapter 11.12 (2009) 3
Chapter 11.12 (2009) 4
to the program are warranted. The committee may assist the County in determining which TDC options
to exercise.
C. Committee member terms. Committee members will be selected by staff based on the knowledge and
expertise that each member may contribute to the development of the TDC Program. One-half the
initial members shall serve for one year and one-half shall serve for two years. Thereafter, members
shall serve two-year terms. Members may be requested to serve additional terms. Staff shall report the
membership of the TDC Advisory Committee to the Board of County Commissioners on an annual
basis.
D. Committee members. The TDC Advisory Committee may include a representative from each of the
following organizations, agencies or professions:
1. The International Society of Appraisers or an Oregon State Certified Appraiser;
2. A firm established for the purpose of real estate development or the representation of development
interests;
3. An individual with recognized expertise in hydrology or ground water;
4. An individual with recognized expertise in big game wildlife management;
5. The Community Solutions Team for Central Oregon;
6. An individual who resides in the designated Sending Area;
7. A member of the La Pine Community Action Team;
8. The Deschutes County Community Development Department Director or designee as an ex officio
member.
9. Staff may select additional members as it deems appropriate.
(Ord. 2006-016 §1, 2006; Ord. 2003-033 §1, 2003; Ord. 2002-010 §1, 2002)