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Home My WebLink About2014-08-27 Work Session MinutesFor Recording Stamp Only Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, AUGUST 27, 2014 Present were Commissioners Tammy Baney, Anthony DeBone and Alan Unger. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; Dave Doyle, County Counsel; and, for a portion ofthe meeting, Judith Ure, Administration; Anna Johnson, Communications; and four other citizens, including a representative ofKTVZ TV. Chair Baney opened the meeting at 1:30 p.m. 1. Humm Kombucha Business Loan Request. Judith Ure gave a recap of the business loan fund to date. Three others will come to the Board next week. She also provided a sheet showing the loans distributed and their status. Robyn Sharp, Bruce Barrett and Eric Strobel of EDCO came before the Board to discuss a proposed forgivable loan to Humm Kombucha Company. Ms. Sharp said that a fourth member of the team, Bill Kuhn of the Bank of the Cascades, has had a business relationship with the company and recused himself. Ms. Sharp stated that this project has been reviewed for a while, as more information was collected on the company. They met with the owners and their board of advisors, and EDCO feels comfortable recommending they receive the loan. They plan to grow by about 25 more employees with family wage jobs. The average annual wage of the new employees would be about $36,000. Minutes of Board ofCornrnissioners' Work Session Wednesday, August 27,2014 Page 1 of3 Pages Mr. Strobel said there is great potential for this product and demand is strong. They recently added a second shift. Ms. Sharp said they are asking for two years to add the new jobs, and will have to maintain them for another. Mr. Strobel indicated they have strong support for an expansion plan. I j DEBONE: Move approval of the business loan request. UNGER: Second. I VOTE: DEBONE: Yes. I UNGER: Yes. BANEY: Chair votes yes. I t l 2. Other Items. ~ I ~ Christine Partain stated that the Sheriff s Office has to notarize documents ! when they sell property at the Courthouse. They want the ability to charge for I notary services provided by staff. In this case, it would be a $10 fee. A hearing i i i is required to add this fee schedule. She said the Clerk's Office does not have a I ~ notary as the Clerk feels this could be perceived as a conflict of interest. Most a County notaries are to notarize only internal documents and not for the public, i so therefore are not able to charge. t Chair Baney asked what other counties charge. Ms. Partain did not check on this herself, but was told other Clerks charge $10 for this service. Notaries I would collect the fee but would pass it on to the County through a written agreement. I I ! Commissioner Unger said that Anne George, of Central Oregon Mediation and I ! an independent mediation and facilitation professional, has a contract to work on the COlD piping issue and wants to see someone other than COlD overseeing the process. Chair Baney asked what the hoped-for result would be, since the land use application has been held in abeyance for now. She does not want to see the County considered a partner in this process between the parties. Commissioner Unger stated that Regional Solutions might be an option as well. Commissioner DeB one does not want to bring the County into it. Chair Baney would like to see boundaries well established and not end up in a lead position. She noted that some of the people in the Regional Solutions group are already on record of supporting piping. She would like more of a hands-off scenario for the County and only be involved at the time the results of discussions are unveiled to all, so next steps can be discussed. Minutes of Board of Commissioners' Work Session Wednesday, August 27,2014 Page 2 of 3 Pages Tom Anderson said he is not clear why the Board or County should be involved until a land use issue needs to be decided. Erik Kropp said whatever happens has to be agreed to by COlD and the residents. Chair Baney stated that perhaps the people involved are trying to decide whether there is a path to mediation. Mr. Anderson noted that some members of the public feel that COlD is running the show. The County has put this issue in abeyance and the parties can meet or assess however they wish. He understands the benefit of hearing the findings, but that implies that the Board has some control over the process, and if either side is not happy, they will ask the Board or County to get involved. Chair Baney wants to see the County remaining neutral, and not force the parties to meet or mediate. The parties need to control the process without the County's involvement. Being no further items discussed, the meeting adjourned at 2:15 p.m. DATED this yA Dayof ~f.(/111.)"V---2014 for the Deschutes County Board of Commissione . Tam~ Anthony DeBone, Vice Chair ATTEST: Alan Unger, Commissioner ~~ Recording Secretary Minutes of Board of Commissioners ' Work Session Wednesday, August 27 , 2014 Page 3 of3 Pages , J, Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960\ (541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org J I 1 WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1 1:30 P.M., WEDNESDAY, AUGUST 27, 2014 1I 1. Humm Kombucha Business Loan Request -Judith UrellRobyn Sharp & Representatives ofEDCO I 1 I 2. Other Items I j ~ I I PLEASE NOTE: At any time during this meeting, an executive session could be called to address issues relating to ORS 192.660(2) (e), real property negotiations; ORS 192.660(2) (h), litigation; ORS 192.660(2)(d), labor negotiations; or ORS 192.660(2) (b), personnel issues; or other issues under ORS 192.560(2), executive session. ~ 1 Meeting dates. times and discussion items are subject to change. All meetings are conducted in the Board o/Commissioners' meeting rooms at 1300 NW Wall St., Bend. unless otherwise indicated. lfyou have questions regarding a meeting. please call 388-6572. I I j Deschutes County encourages persons with disabilities to participate in all programs and activities. This event/location is accessible to people with disabilities. If you need accommodations to make participation possible, please call (541) 388-6571, or I, send an e-mail to bonnie.bakerriildeschutes.org. I l ~ '-....... VI VI Q)... t' "'0 "'0 CO \~ 'n; E I Q) =1t: Q) c:: 0 .c: c.. r3t + ~ e ~ ..!t ~ ~ " \6 r ~ ~ ~ ~ ('0" N ~ ..:Jl <l f'r , ~ tJ 0 \ \' \) ~ ~ c; -.l1 ..{l ~ } v; ~5 -,.S) :::r ~ • ~ c-..,, §; £ .j + ) l J d::: ~ ~ .......n -.I") ~ M ~ N ~ (V' ~ .-~ ~ ('.. t' ~ + t t + + + v. Q) CO 0.. 4o Q) co 0.. BRIEFING PAPER FOR Humm Kombucha Request for Deschutes County Forgivable Loan June 12, 2014 Number of Employees: 8 Company Request: $ 50,000 EDCO Recommendation: $ 50,000 Proposed Job Creation by end of 2016: 25 full-time family wage jobs Average Pay for New Employees (all positions, excluding commissions): $ 36,782 Capital Investment: $4,000,000 Industry: Manufacturing, Brewing Website: www.hummkombucha.com Company Background: Humm Kombucha (formerly Kombucha Mama) brews kombucha beverages. Kombucha is a raw, fermented, and naturally carbonated tea loaded with probiotics and B vitamins. The family has been brewing kombucha for over 20 years as the recipe was passed down from a mother to a son, from that son to his wife and from that wife to her best friend. In February of 2009 Michelle Plantenberg and Jamie Danek started a producing Kombucha in Michelle's kitchen. They brewed one gallon at a time to start and in March they sold the first two gallons. Demand quickly grew to the point where they were no longer able to meet the demand from the kitchen. Total sales that year were $28,000. In 2010 they moved into the first commercial production facility. Sales tripled to $82,000 while cost of goods and expenses decreased. Sales grew to $100,000 in 2011, but lack of capital and production capacity prohibited substantial growth. In 2012, with 150% growth, additional brewing equipment was purchased from 6-month advance orders providing the needed capital. In 2013 the company moved into a new production facility that took them from 500 gallons of output a week to 6,000 gallons per week. Revenue was over $950K with $500K of that coming in Q4 after the new facility opened. When running at full capacity this facility will be able to produce around $7M in product annually. In April of 2014 Kombucha Mama rebranded and became Humm Kombucha. The company founders are pushing into unchartered territory in the kombucha beverage space. This drive has led to the creation of the first kombucha tasting room in the country, as well as putting kombucha on tap in retail spaces. Further, the company is raising capital to purchase another facility to grow production to meet growing demand. Funding from the Deschutes County Forgivable loan will be used to hire and train 25 new employees with an average family wage as defined by the Oregon labor Market Information System (OlMIS) on the date a loan agreement is executed and to purchase supplies and equipment for expanded production -kegs, bottles, labels, and caps. EDCO Recommendation EDCO is recommending to Deschutes County an award of $2,000 per job for this request for a total forgivable loan of $50,000. July 25, 2014 1 f !MEMORANDUM To: Deschutes County Commissioners Tammy Baney, Tony DeBone and Alan Unger From: Due Diligence Committee for the Deschutes County Forgivable Loan Fund Bruce Barrett, Windermere; Eric Strobel, BBSI; Robyn Sharp, EDCO Re: Deschutes County Forgivable Loan for Humm Kombucha Humm Kombucha applied for a forgivable loan in February of 2014. EDCO employee turnover, needed clarification of company information and rapid company growth all slowed the Due Diligence Committee's work in determining its recommendation. On June 5, 2014 the Committee finalized their assessment and recommended the Commissioners approve the loan. The Committee was aware that one of the company's leaders, Eric Plantenberg, was involved in serious legal matters, but made an assessment that his case was a separate issue from the company's potential success and based on a thorough review, agreed to recommend support for the loan. On July 8, 2014, one day prior to the scheduled meeting with Commissioners, the Committee learned through a news article associated with Eric Plantenberg's sentencing, that the company was going to be sold, in part to help cover some of the fines facing Eric. With very little time to investigate that information, Judith Ure was contacted and asked to remove the loan request from the Commissioner's agenda, and Robyn Sharp asked for time to verify the information and investigate the company's plan. On July 23, 2014 the Due Diligence Committee again met at Humm Kombucha. Jamie Danek, CEO; Kate Dunning, Director of Finance and Jim Schell, Advisory Board member were present. Clarification was made that the company is not for sale and business is proceeding as planned. A strong Board of Advisors has been put in place to include Jim Schell, current Board Chair Boys and Girls Club; SJ Camerata, Director ESRI Inc.; Gary Fish, President, Deschutes Brewery Inc.; Bill Owens, retired U.S. Navy Admiral; Martha Bejar, CEO, Flow Mobile; Michelle Mitchell Plantenberg and Jamie Danek, co-owners of Humm Kombucha. Additionally, funding targets have been met for the first phase of fund raising. Given the strong leadership of the Board of Advisors, a keen focus to maximize production in the existing facility, clear investment success, and a growing demand for the product, the Due Diligence Committee once again affirms its support and recommends the Deschutes County Commissioners approve a forgivable loan in the amount of $50,000 to Humm Kombucha. Respectfully Submitted, Robyn Sharp Bend Manager, EDCO Bruce Barrett Windermere Eric Strobel l Regional Manager, BBSI Board of Advisors Jamie Danek, Michelle Plantenberg, Jim Schell, Gary Fish, SJ Camarata, Martha Bejar, Bill OWens Jamie Danek, CEO National Sales ManageL Contract Melissa Carter, Sasha Lawless, Brittney Murphey, Jade Danek Ooerations Dave Naftalin, Director of Operations ~ Mackenzie Stabler, Jeff Clason, Elysse Boarman Packaging Jeff Blaylock, Production Manager Eli Stabler, Logan Beaulieu, Kelli Birchell, Matt Anderson, Ryan Houlzhouser ~ Kate Dunning, Director of Finance Deschutes County Economic Development Loan Fund Loan Status as of August 27, 2014 ------....~ Organization Number Agreement of Number Employees Agere Pharmaceuticals Inc. 7 2010-745 G.L Solutions 39 2010-749 Buehner Fry, Inc. (NAVIS) 27 2011-137 Dent Instruments 6 2011-138 Alchemy Solutions, Inc. 13 2011-358 Medisiss 24 2011-572 Geo-Spatial Solutions, Inc. 10 2011-641 Central Oregon Trucking 35 2012-311 Consumer Cellular, Inc. 200 2012-584 Energyneering 17 2012-643 Venture Catalyst N/A 2013-025 NAVIS 26 2013-238 BasX .......__.. ----- Agreement Loan Jobs Created Date Amount Date 12/15/2010 $14,000.00 03/3112012 12/29/2010 $50,000.00 09/0912012 04/1312011 $50,000.00 11116/2012 04113/2011 $12,000.00 11/11/2012 06129/2011 $26,000.00 03/3112013 09/08/2011 $48,000.00 07118/2013 10/3112011 $20,000.00 07/2212013 06/06/2012 $50,000.00 0411112014 11126/2012 $50,000.00 03/0112014 12/2612012 $34,000.00 03/3112012 02/2112013 $20,000.00 N/A 0611312013 $50,000.00 0112812015 ------------. Jobs Date Repayment Amount Paid Retained Converted to Amount to Date Date Grant (principle) (principle) 09117/2013 5/14/2014 N/A N/A 09/09/2013 5114/2014* $19,515.22 $19J~15.22 11116/2013 5/14/2014 N/A N/A 11/11/2013 511412014 N/A N/A· 03/3112014 N/A $26,000.00 $26,000 07118/2014 Pending N/A N/A. 07/2212014 Pending TBD 04/1112016 Pending N/A N/A 03/0112015 6130/2104 Pending N/A N/A N/A N/A N/A N/A 01/28/2016 ---~ .._- *partial conversion Economic Development Fund 105 FY 2014-15 Status as of August 27, 2014 Activity Date Amount Balance Beginning Net Capital Transfer In (GF) Loan: BasX Repayment: Cascade Community Healthcare Repayment: 8t. Vincent de Paul Interest Earned 07/01114 07/15/14 07/08114 07125114 07/3011 4 1 07/31114 40,000.00 -50,000.00 2,222.22 5,121.51 61.64 114,698.56 154,698.56 104,698.56 106,920.78. 112,042.29 112,103.93 - I DESCHUTES COUNTY SHERIFF'S OFFICE LARRY BLANTON Sheriff 63333 W. Hwy. 20 Bend, OR 97701 Bend O/lice 541.388.6655 Fax 541.389.6835 Administration 541.388.6659 Fax 541.389.4454 La Pine Oflice 51340 Highway 97 La Pine, OR 97739 541.536.1758 Fax 541.536.5766 Sisters Oflice 703 N Larch St., Suite C 541.549.2302 Fax 541.549.1762 TelTebonne Oflice 8154 11th Street, Suite 3 Terrebonne, OR 97760 541.923.8270 Fax 541.548.7589 Special Se]'yicesiSA.R 541.388.6501 Fax 541.388.0793 Emergency Se]'yices 541.617.3303 Fax 541.388.0793 Adult Jaij 541.388.6661 Fax 541.330.9162 Christina Partain Deschutes County Finance 1300 NW Wall Bend, OR 97701 Dear Ms. Partain, The Sheriff's Office is requesting that a $10.00 fee for notarizing documents be added to the Deschutes County fee schedule. The authority for this request is: ORS 194.400 Fees for notarial acts; collection of fees. (1) The fee that a notary public may charge for performing a notarial act may not exceed $10 per notarial act. (2) A notary public may charge an additional fee for traveling to perform a notarial act if: (a) The notary public explains to the person requesting the notarial act that the fee is in addition to a fee specified in subsection (1) of this section and is in an amount not determined by law; and (b) The person requesting the notarial act agrees in advance upon the amount of the additional fee. (3) If a notary public charges fees under this section for performing notarial acts, the notary public shall display, in English, a list of the fees the notary public will charge. (4) A notary public who is employed by a private entity may enter into an agreement with the entity under which fees collected by the notary public under this section are collected by and accrue to the entity. (5) A public body as defined in ORS 174.109 may collect the fees described in this section for notarial acts performed in the course of employment by notaries public who are employed by the public body. [2013 c.219 §42 (enacted in lieu of 194.164)] Assuming a consistent number of Sheriff's sales, the estimate is approximately $10,000 annually for notary fees to the Sheriffs Office. Please contact me if you need further information on this request. Sincerely, f::::ii~ Deschutes County Sheriffs Office Legal Counsel (541)617-3369 Chapter 1: Introduction A schedule of fees must be prominently displayed or handed to customers prior to notarization so they have the right of refusal if they do not wish to pay. Also,ORS 194.990(1)(d) states that any person who seeks to have a notary commit misconduct commits a Class B misdemeanor. On top of the civil penalty stated above, it is also a criminal offense to force improper notarizations. Chapter 2 provides a more in-depth look at notarial misconduct and the steps a notary should take to guard against it. Employer Notarization Policies Companies that employ notaries might want to create a policy on notarizations. Such a policy should address the following issues: • What times a notary will be available. • What types of documents will be pennitted. For example, a hospital might allow notarization of only healthcare documents. Although an Attorney General's opinion (DOJ 165-3OQ...O(93) states, " ... the notary public may, under the notaries public laws, either serve the entire public which desires notary services, a portion of the public (such as customers of a business or fellow employees) or no one at all," notaries may be seen as having an obligation to respond to any reasonable request for a notarization, and employers may wish to uphold that duty. Restriction of notary services must be carefully crafted, so that the possibility of lawsuits based on perceived discrimination is minimized. • A statement to the effect that the "Notary has the sole responsibility to refuse a notarization," because it is the notary's liability. • What the fees will be and where they are posted. OAR 160-100-400. • The responsibility of the notary for updating commission information and renewals, along with the procedure for doing so. • Other items of concern or policy, such as the extent and conditions of liability coverage under the employer's insurance. Notary Fees Notaries who charge for their service will find the maximum fees allowed to be charged in the OAR 160-100-400. The notary public may charge less than the amounts listed, but must not charge more. A schedule of fees must be prominently displayed or handed to customers prior to notarization, so they have the right of refusal if they do not wish to pay. The notary public keeps track of the amounts charged in the notarial journal. Whether the employer or the notary public keeps the fees is an issue to be settled by those two parties. Waiver of Fees If the notary public signed the fee waiver on the application form, the notary public may not charge anyone at any time. OAR 160-100-420. To begin charging, the notary public must send the Secretary of State, Corporation Division a letter rescinding the waiver of fees. Some elected and public officials may not charge for their notarial services. Check with legal cotU'lsel if in doubt. January 1996 7 --, Chapter 1: Introduction Travel Fee When a notary public is asked to travel to perfonn a notarial act, the notary public may charge a travel fee, separate from the notarial fee. ORS 194.164(2), OAR16Q-lQ0..6lO(27). The travel fee amount must be agreed upon prior to meeting with the customer. Notary Fees and Your Employer Oregon statutes and rules do not address the collection of notary fees by employers, but a written agreement about notary fees is advisable. The statute gives only the notary public the right to charge notary fees, but an employer often includes a notary charge to the customer when notarization takes place. The fees must not be more than established by Oregon Administrative Rule, and the agreement should make it clear that the notary gives the employer the right to collect and retain the appropriate revenue. The notary public, however, should be allowed to keep fees collected when notarizations are not connected to his or her employment. The employer's legal counsel should draw up an appropriate agreement. 8 Oregon Notary Public Guide J