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HomeMy WebLinkAbout2013-04-03 Work Session Minutes Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 1 of 11 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 MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, APRIL 3, 2013 ___________________________ Present were Commissioners Alan Unger, Tammy Baney and Anthony DeBone. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; and, for a portion of the meeting, David Givans, Internal Auditor; Marty Wynne, Finance; Sheriff Larry Blanton; Mark Pilliod, County Counsel; Susan Ross, Property & Facilities; and three other citizens including Shelley King of The Bulletin. Chair Unger opened the meeting at 1:30 p.m. ___________________________ 1. Discussion of Testimony Stemming from the February 26 and March 12 Hearings on the Newberry Country Plan. Peter Gutowsky said this will be structured for a business meeting on April 15. The record was closed for oral testimony for a time. Since then they have received a few letters or e-mails. Mr. Gutowsky stated that a matrix has been provided, and the Commissioners can comment on what might be changed in the plan. The findings would be updated and the Board would start deliberating. The biggest topic is groundwater quality issues. There is a statement describing this issue. They hoped to use the DEQ statement as the description of the condition of the groundwater quality there. Testimony was raised to light as to whether this statement should be in this Plan. Planning staff created a matrix, a spectrum of options that might be beneficial to consider. This will help the Board understand why the DEQ statement has been used. This statement may be part of a Goal 11 exception, however. Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 2 of 11 The first alternative on page 36 of the Plan is the direct reference off the DEQ website for the past three years. What is important as land use planners, they have to make some statements even if some residents are uncomfortable with it. Oregon has 19 Statewide Planning Goals, the first being citizen involvement. However, that does not trump other Goals. The County has to comply with Goal 6, relating to water quality. No evidence has been submitted to them to date that nitrates are not contributing to pollution. Deschutes County is involved in several programs that deal with groundwater quality. The County knows about groundwater challenges and is committed to addressing them. There are also two policies dealing with Goal 11, the potential for extending public sewer facilities. Also, once the DEQ Steering Committee makes a recommendation, they want a joint meeting with the Board. Alternative B wants to strike out the reference to groundwater quality, but they should have information on water resources as a part of it. Alternative C maintains the DEQ language but strikes out the references to unsafe levels associated with nitrates, etc. It recognizes the sensitivity along with groundwater protection. Alternative D is what is in the Plan today, as of January 2012. They relied on the DEQ language and must protect groundwater quality by law. The Planning Commission held two hearings and received testimony, but unanimously recommended keeping it in. He does not recommend Alternative E. For fifteen years, the County has been up front with RPS issues. Alternative F is not recommended but is informative. The report contains information on groundwater issues dating from the 1970’s. It is this type of language that provides a foundation for an innovative approach to Goal 11. Mr. Lelack said it is important to work forward on a Goal 11 exception, and this information is helpful in this document. Commissioner DeBone said some of the wording is shocking, as it relates to health issues. Mr. Lelack feels that a decision for the Board might be between C and D. Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 3 of 11 Chair Unger stated they need the options so they will be able to address solutions. He said that Ms. Forsythe is passionate about citizen involvement and there has been significant work done in this regard. Mr. Lelack added that there has been an effort to capture all the essential County issues. Commissioner Baney asked what they need to do today. There is sensitivity to each word. Mr. Gutowsky said that if the Board decides to take some language out, it makes all the discussions and outreach much less effective and makes some things insurmountable. Mr. Lelack added that they are asking that there be a justified need for the Goal 11 exception. Having something in the plan does this and bolsters the argument. The bar has to be very high. Chair Unger agreed. Commissioner DeBone said that the steering committee recommendations are important also, especially if they are looking at sewering. A nitrate box is a about a $10,000 addition. A hookup fee can be about the same, less the tank and drainfield. The Board had previously felt the nitrate reducing system was the best. Commissioner Baney said this was to be used if there were no other ways to do it, like a Goal 11 exception. Commissioner DeBone said that developing a sewer system won’t be cheap, either. Commissioner Baney stated there is not a huge rush; can they wait for the steering committee’s recommendations. Mr. Lelack said it could be adopted and then amendments made when this other work is done since no one knows how long it might take. Chair Unger said he would like to continue forward and use the rest of the Plan for a lot of different purposes, and then amend as appropriate later. Mr. Gutowsky stated that there are some who want to review the recommendations, but it might be a while before that happens. He noted that the DEQ steering committee has been at this for three years, and was not overly concerned about the Plan. They don’t expect to meet again for at least a month. Commissioner DeBone spoke about the wording in Option C. He would like some language stricken. In the past five years, they have seen a reduction of population and activity in the area, and density won’t be an issue for a while. Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 4 of 11 Commissioner Baney stated that there are statements that the groundwater is becoming contaminated, but this might apply to just a few areas. Mr. Gutowsky said they were trying to find a way to keep the essence of the conditions in the region and that nitrates are being addressed. It can capture what has been taking place. The group will continue with this discussion after some wording changes. Mr. Gutowsky wants to honor other perspectives, but they have to keep the document meaningful. 2. Discussion of Jail Remodel Finance Options. Mr. Anderson stated that the Board voted to move forward with the expansion of existing jail facility. There are options on the financing package to pay for that, but he wants to make sure they won’t lose time on the design portion. This allowed them time to get a handle on the budgetary part and what funds might be utilized, as well as general funds to come. They have done this, and are within a few days of finalizing the Budget Officers recommendations. They are in a better position to make further recommendations. Mr. Wynne stated that if bonds were issued for $8.4 million, the rate would be about 3% for 20 years. (He referred to a document, attached for reference.) As discussed, there will be transfers in the current FY. More room tax fundin g is coming in and this takes weight off the general fund. It would be $2.6 million plus $8.4 million, with some paid this year out of the jail construction fund. The total project cost is $10.9 million, including medical and mental health improvements. Mr. Anderson stated the Board may want to include the Bethlehem Inn and Solid Waste loans, to take advantage of historically low interest rates. Nothing else was identified. The Bethlehem Inn is a County asset but no funding source has been noted. The fund is negative, but he does not recommend adding additional debt. Prior to the failed vote for a larger jail project, money was borrowed from Solid Waste for upfront costs. It was intended that a County land sale would pay for this work, but this has not happened. Many of the costs are applicable to this project. Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 5 of 11 The interest rate on the debt to the Solid Waste reserves is equivalent or lower to the rate of a bond. At the current time, he feels it would be premature to add to debt by including this. It is possible that County land might be sold and applied to this debt in the future. Mr. Wynne stated that he wants to be sure they understand the agreement that when the bond is issued, it would be split 50% Sheriff and 50% general fund. The debt service fund would receive funds from both. This would become an ongoing expense from general fund for 25 years. If the Board decides to pay the entire amount on the Jamison Building, that has about 15 years to go. Sheriff Blanton stated that they will need money for radio equipment upgrades, so funds were set aside for this, while the Board figured out what to do with the Jamison debt. Infrastructure is different. They have 500 radio units. If dollars come out of the 9-1-1 fund, this only covers some radios, but not other equipment, which is very expensive. There is a federal and state mandate for narrow banding, and they need to set aside funds for that. He is not sure how smaller entities will do this changeover. Commissioner Baney said she does not know what the County’s share of this will be. Sheriff Blanton said that the 9 -1-1 contingency will be used for the overall system, but other costs will have to be borne by the agencies according to their share. He will have to set up a radio finance plan to cover this. There are 14 users and they are all in for their own part of this. It is a challenge. Commissioner Baney asked about the jail expansion and communications systems and the Solid Waste loan. That was part of the jail costs, and she feels that they should pay this down, on a payment plan, rather than wait for the sale of property. Sheriff Blanton stated that they have discussed this issue for some time. There were various fees and expenses to get to a tax rate that was acceptable to the Board. Much was borrowed from Solid Waste. Commissioner Baney wants to hear some options regarding the Solid Waste debt. Susan Ross said these dollars have already been expended, so they should not have to go into debt to cover this. They can start paying this expense off internally through a payment plan. Sheriff Blanton stated that his share of that would be about $300,000. Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 6 of 11 Mr. Anderson suggested that if the Board moves forward on a bond sale, the debt service can be part of the budget for the next year and he can work this out with the Sheriff before then. Since it is not an amortization schedule type of debt, it can be modified each year as the Board sees fit, including accelerating repayment. They retain that flexibility by preserving this inte rnally. Chair Unger stated that there is also a philosophy to keep cash available. Mr. Wynne said it can offer opportunities that may be wise to take, to keep rates down or other services. They have been conservative over the years for times like this. They are also looking at historic all-time low rates. It is good that rates are low, but they may not stay this way for long. The Bethlehem Inn debt in particular is a lesson learned. In the future, they needed to know for sure where the funds are coming from. The budget was balanced the year this occurred but the grant went away as well as the loan. So the County ended up covering it through a variety of sources. The funding issue won’t go away by itself and will continue to grow. Solid Waste is to be held harmless. There are two sides to the issue. It is a great time to issue bonds, but it is nice to have cash on hand. They have taken advantage with purchases over the years that have saved money, but sometimes it does not work out due to circumstances. He said no one knows what the next few years will bring. They have committed some to the jail bond, the Jamison Building and also the Solid Waste debt. Ongoing this might be okay, but best case is the stock market rallies, and PERS is favorable, and the Health Benefits Trust costs stay low. But if any of these things don’t happen, they get backed up. Once they get upside down, something drastic will have to be done. Commissioner Baney asked if the Solid Waste loan can be capped. Mr. Wynne stated that this means it doesn’t go higher and could hurt Solid Waste. They are to be held harmless. He has been in meetings where it was said that Solid Waste funds could be spent for other things, but even if legal, is it right. The interest rate keeps Solid Waste whole. The Board does not want to do that. No one knows where rates are going, which means someone wins or loses. Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 7 of 11 Commissioner Baney said if they start paying costs back internally, they may end up paying more interest in future years when they could have bonded it at a lower rate now. Sheriff Blanton noted that it was pointed out that other County obligations will be satisfied, such as the Courtney debt service. He feels the Solid Waste debt is everyone’s issue. He wanted to know if the landfill needs the money right now. Property sales may be part of the conversation at some point. He is in for $300,000 for this. Mr. Wynne stated it seems that somewhere there should be a list of property that could be sold. At one point, this could have been high. Commissioner Baney said that what saved them over the years was the ability to trade, and they should not sell at the bottom. Much is not saleable at this time. Ms. Ross said they have a list, but the County talked about this issue years ago to pay for the jail, and it was unrealistic. They don’t have that much property and most have issues such as land use or access. That’s what is left. There are State laws that determine how they can use the proceeds. There was a portfolio, but those dollar values are much lower now. Mr. Anderson does not recommend they sell anything right now. They should wait for the market to improve. They need to maximize their flexibility over the next five years. They are now looking for direction on the bond. Sheriff Blanton said they are rolling on the medical/mental health part of the project and he hopes for no construction delays. Also, they have not talked about the Solid Waste loan and whether some could be rolled into this project. Mr. Wynne stated that the Board would have to authorize a bond issue as prepared by bond counsel. He needs to know for how much and for how long. Mr. Anderson recommended the $8.4 million amount, at twenty years. He is willing to add the Bethlehem Inn and/or Solid Waste loan, or change the number of years. Commissioner Baney asked about the life of the jail, which is used 24/7. Sheriff Blanton said he knows they are asking the public for a lot. It is important to talk about this. In 25 years, there will be something else. As the County grows and more laws are passed, he hopes that the work center and the jail will last for a long time. They also thought that the current jail would last a long time, too. No one knows. Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 8 of 11 Commissioner Baney say they may need to make considerable adjustments to stay with the current jail site. In the interim, they might need additional expansions such as a kitchen and laundry. In twenty years, they may have to go out for more money. Sheriff Blanton said that the incremental needs will be his responsibility. They don’t have a capital expenditure fund at the Sheriff’s Office. He hears good things from the public; but also that they want him to live within his means. Mr. Wynne said there is no reimbursement schedule for the Bethlehem Inn, and when the north County campus issue is resolved, they could reimburse themselves from the Design Center sale, and use that for the Bethlehem Inn since it would be tax exempt. Chair Unger feels that there might be a conversation in the future regarding the value of the Bethlehem Inn, posing this to the public. The bond was proposed at $8.4 million for 25 years, to free up funds to start paying back Solid Waste. Commissioner DeBone was supportive. Commissioner Baney wants savings to buy down debt. Chair Unger said that philosophically he prefers 20 years, but can go with 25. She wants to figure out another way to pay down the Solid Waste loan. Sheriff Blanton said that they can finance this for 25 years but pay it off earlier if it makes sense. This helps during the lean years. Mr. Wynne noted that there is no wrong decision, but rates are very low right now. The final decision was to bond at $8.4 million for 25 years, and use the savings to pay down the Solid Waste loan. A Resolution will be prepared for fo rmal approval. 3. Discussion of Room Tax Payments. Marty Wynne said there are a couple of property owners (companies) who have made room tax payments for years without problems, but the economy and other issues have made this difficult lately. One company, and the reason for this discussion, has unusual circumstances. The auditors missed a finding they should have found. Mr. Wynne requested a waiver on the penalty portion of the three years for which the auditors should have made a recommendation. He would also like to put the extended amount into a promissory note. Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 9 of 11 Mr. Pilliod stated that the fact that the auditors made a mistake is not something that allows the taxes to be forgiven. Under Code, they could waive the penalties because in theory, if they had known, they would have paid and the penalties would not have been imposed. The tax is still owed. Also, they have asked for some relief in terms of the payment schedule, including taxes in arrears. The authority of the Finance Director to enter into this type of arrangement is very limited. That’s where this stands today. He would frame the Board’s forgiveness of the penalties based on payment of taxes per the schedule. The percentage for the penalty is set by the County. The Board was supportive of waiving the penalties if the note is paid as agreed. BANEY: Move preparation of the appropriate note and documents relating to this issue. DEBONE: Second. VOTE: BANEY: Yes. DEBONE: Yes. UNGER: Chair votes yes. 4. Other Items. Letter of Offer for the Permanent County Administrator. Chair Unger stated there is a letter of intent completed, and staff needs direction on drafting an employment contract with Mr. Anderson for consideration. Commissioner Baney said she was really impressed with the candidates this time around. It is important, because this decision will outlive her time in office and others. She felt that most could have served well. She added that Mr. Anderson is doing a great job. There was a strong pool of candidates and he rose to the top. It was because there was good competition but also that he was he right person. Commissioner Debone noted that it was at times an awkward situation, but was a good one. He is pleased they could come together. Minutes of Board of Commissioners’ Work Session Wednesday, April 3, 2013 Page 10 of 11 Chair Unger added that this strengthens the position since they did go through a process, with input and deliberations on the choices. Staff will be even more behind him due to this process. Sheriff Blanton said he echoes all this. They have been through some challenging times with interim administrators having to be a quick study on a lot of things. The right decision has been made. Mr. Wynne stated he personally voiced support for Mr. Anderson before, and thinks he is the best choice. Mr. Anderson said he is grateful to be asked to help last fall. He may have had some apprehension regarding the full process, but can say he agrees it was the right thing to do. It helped him also feel more validated. He gladly accepts the offer and they are working out the contract details. He is very excited to keep moving forward and using the expertise of all the outstanding people in the County to support him. He likes the stability and making things happen. UNGER: Move approval of the agreement. DEBONE: Second. VOTE: BANEY: Yes. DEBONE: Yes. UNGER: Chair votes yes. ___________________________ BANEY: Move approval of the minutes of the March 25 work session and business meetings. DEBONE: Second. VOTE: BANEY: Yes. DEBONE: Yes. UNGER: Chair votes yes. ___________________________ Commissioner Baney said there is a hearing on HB 2262 regarding the consumer protection bill and foreclosures. This would require the owner or the property, typically a bank, to properly maintain the property while it is owned by them. There are few examples of problems here, but it is worse in the cities. There was a brief discussion on the Alfalfa cell tower appeal hearing. The Board would like a neutral place for the hearing; possibly the community hal there if it is appropriate and available. Being no further items addressed, the work session ended at 3:35 p.m. JJA-, DATED this /'1I ~ Day of ~ . 2013 for the Deschutes County Board of Commissioner;' aL-~ Alan Unger, Chair ~) Tammy Baney, Vice bhair ATTEST: Anthony DeB one, Commissioner ~~ Recording Secretary Minutes of Board of Commissioners' Work Session Wednesday, April 3,2013 Page II of II Deschutes County Board of Commission 1300 NW Wall St., Suite 200, Bend, OR 97701-19 0 (541) 388-6570 -Fax (541) 385-3202 -www.deschutes. WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 P.M., WEDNESDAY, APRIL 3, 2013 1. Discussion of Testimony Stemming from the February 26 and March 12 Hearings on the Newberry Country Plan -Peter Gutowsky 2. Discussion of Jail Remodel Finance Options -Tom Anderson, Susan Ross 3. Discussion of Room Tax Payments -Marty Wynne 4. Other Items PLEASE NOTE: At any time during this meeting. an executive session could be called to address issues relating to ORS 192.660(2) (e). rea property negotiations; ORS 192.660(2) (h). litigation; ORS 192.660(2)( d). labor negotiations; or ORS 192.660(2) (b). personnel issues. Meeting dales, times and discussion items are subject to change. All meetings are conducted in the Board a/Commissioners' meeting rooms 1300 NW Wall St., Bend, unless otherwise indicated. Ifyou have questions regarding a meeting, please call 388-6571. 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 tnmsfer relay service for TrY. Please call (541) 388-6571 regarding alternative formats or for further information. t c 0 'v; VI Q) V\ ~ ..... 0 ~ 1 1_ I I I I .t­1­ I I VI OJ co <---f 0­\ll ~ II 4­I 0II I I I l ~ 0­ ~ ~~I OJ 7(j""" g.I ~I E II I I '> ~ ~ I z ~\7\ ~ ~ I "2. -(~ ! I ~'il Post Office 1295 La Pine, Oregon 97739 Deschutes County Board of Commissioners 1300 NW Wall Street, 2nd Floor Bend, OR 9770 I March 29,2013 Re: Public testimony regarding the South County Plan Dear Commissioners Baney, Unger and DeBone: Thank you for the opportunity to provide testimony concerning NeWberry Country, A Plan for Southern Deschutes County. This testimony concerns page 36, "Groundwater Quality." As you heard in the hearings and in written testimony, people who live in South Deschutes County fin~ the statements in that section, offensive, lacking in factual substance and highly likely to cause economib harm to homeowners and businesses in South Deschutes County. I would suggest that you strike t~ current language and replace it with the following quote from the USGS. It strikes a neutral an~ informative tone that I believe is positive and constructive: . Groundwater Quality The interaction between ground water and streams is controlled largely by the relative elevations of the water table and adjacent streams. In the La Pine subbasin, south of Benham Falls, the water-table elevation is near land surface. Stream gains and losses along most of the Deschutes and Little Deschutes RiVers in this area are small, indicating relatively little net exchange between ground water and surface water. North of Benham Falls, the northward slope of t~ water table is larger than the slope of the land surface, so depths to ground water increase northward toward Bend. In the central and eastern parts of the study area, ground-wat ir elevations are typically hundreds of feet below the elevations of streams. Although groundwat r levels are considerably below stream elevations in this area, streams do not lose appreciab amounts of water, because streambeds have been largely sealed by infiltration of fine sedimen . One notable exception is the Deschutes River, which loses on average approximately 113 ft3 s between Sunriver and Bend, likely into the youthful Holocene basalt erupted from Lava Butte I. Respectfully submitted, John Huddle, Ed.D. Gannett, M., Lite, K. & Morgan, D. Collins, C. (2001). Ground -Water Hydrology o/the Upper Deschutes Basin, Oregon. Water-Resources Investigations Report 00-4162. U.S. Geological Survey, U.S. Department of the Interior. P 13. Written testimony for page 36 of Newberry country March 29,2 13 Deschutes County Commissioners, Please adopt the suggested revision to the Newberry Country Plan as shown with the strike 0 s for Page 36, per Peter Gutowsky's memorandum dated March 21. As I stated in earlier verbal testimony, I don't feel this Plan should contain controversial statements. The language which was struck out is extremely controversial to me and many 0 I rs who have worked on the groundwater issue for the past 6 years. The overall demeanor of the original DEQ language is quite negative. Stop for a second and consider what NOT said: Newberry Country is blessed with some of the safest/purest/cleanest drinking water in the country! Analysis of nitrate well data shows that, except for isolated hot spots, the vast majority of wells are way below the state nitrate "action level". Expanding on the above point, Newberry Country is NOT eligible for a Ground Wate Management Area designation. Another point, the Health Department has NOT been a participant in the nitrate issue Newberry Country (since I've been involved). CAG analysis of nitrate well data over the past decade indicates that nitrate levels are ot increasing by any significant amount in Newberry country. Looking at the above points, it is clear that what was copied from the DEQ website is languag~ that exhibits a very negative bias, and misleads the uninformed as to the true nature of the nitrate problem here in Newberry Country. The "Comment" in support of the original DEQ language: There is no evidence in the record to demonstrate that the safety of groundwater is not threatened by nitrate contamination from septic systems Seems to me to be a "you are guilty until you prove yourselves innocent" conjecture. If you re read all of the "positive" statements above, realize that the real world nitrate data fails to defi e a problem that requires immediate onsite upgrades over all of Newberry Country. I completely disagree with the Comment: Striking the suggested groundwater references also undermines the justification for the BlM land transfer in 1998 that led to the creation the Neighborhood Planning Area in la Pine and the transferable development credit Page 1 of2 4/1/2013 i (TOC) program. Tome, the last sentence of the paragraph: Since 2010, OEQ has assembled a steering committee of community members to discuss and make recommendations to improve groundwater protection in southern Deschutes demonstrates that there is concern/action about correcting the "platting sins of the 70's" in Newberry Country, and the BLM land transfer in 1998 was an example of earlier attempts at rectifying that foul deed. In summary, please adopt the suggested revision, and have the struck out text removed. Thankfully yours, Ronald J Sharbaugh Newberry Country Resident. Page 2 of2 . 4/1/2013 I ... , Peter Gutowsk I1 From: Nick Lelack Sent: Friday, March 29,20132:32 PM To: Tom Anderson; Todd Cleveland; Peter Gutowsky Subject: Fwd: Written testimony re: Newberry Country-A Plan for South Deschutes County Nick Lelack Deschutes County 541-639-5585 Sent from my iPhone Begin forwarded message: I From: Judy Forsythe <judybug7669@q.com> Date: March 29, 2013, 10:46:36 AM POT To: Tammy Baney <Tammy.Baney@deschutes.org>, Alan Unger <Alan.Unger@deschutes.org>, Tony DeBone <Tony.DeBone@deschutes.org>, Nick Lelack <Nick.Lelack@deschutes.org> Subject: Written testimony re: Newberry Country-A Plan for South Deschutes County Good morning, Commissioners Baney, Unger and DeBone, Please include this written testimony, submitted at 10:47 a.m. into the public hearing record re: Newberry Country - A Plan for South Deschutes County. WE, the public are 'weighing in' regarding the proposed DEQ language as suggested at. he Planning Commission meeting of Nov. 8, 2012. . I disagree with the 'substance' of the language on Page 6 of the staffs 'suggested revisions' regarding Proposed DEQ Groundwater Quality language. I respectfully ask the Board of County Commissioners to strike the DEQ language from our Newberry Country - A Plan for South Deschutes County, once and for alL 'FINDINGS' are addressed through Goals and Policies, not narrative excerpts, thereby rendering the potentially 'harmful' DEQ language not only unessential, but dispensable. Page 4 of 13, Exhibit E to Ordinance 2013-007 says that the following 'findings' demonstra~e that Ordinance 2013-007 complies with applicable statewide planning goals and state law' arid then proceeds to list the 'Goals and Policies' of the Newberry Country Plan. Exhibit E, page 7, also clearly states that Goal 6: ...Water...Quality is met. Air, Water and Land Resources Quality is met because, as demonstrated below, these plan amendments continue to contain policies that subscribe to protecting water and land resource qualities. 1 1. Goal 9 says to Partner with the Oregon DEO to protect groundwater and public health.and Policy 9.1 and Policy 9.2 are also listed. 2. I maintain that staffs concern regarding 'findings' has been adequately shown. Therefore, I see no need for the DEQ language in our Newberry Country Plan. Respectfully, Judy Forsythe Newberry Country Constituents and Close Neighbor of North Klamath County 2 ." Peter Gutowsky From: Sent: To: Subject: Nick Lelack Friday. March 29, 20132:31 PM Tom Anderson; Todd Cleveland; Peter Gutowsky Fwd: WRITTEN TESTIMONY for Public Record of Newberry Country-A Plan for South Deschutes County Nick Lelack Deschutes County 541-639-5585 Sent from my iPhone Begin forwarded message: From: Judy Forsythe <judybug7669@g.com> Date: March 29,2013, 11 :05:40 AM PDT To: Tammy Baney <Tammy.Baney@deschutes.org>, Alan Unger <Alan.Unger@deschutes.org>, Tony DeBone <Tony.DeBone@deschutes.org>, Nick Lelack <Nick.Lelack@deschutes.org> SUbject: WRITTEN TESTIMONY for Public Record of Newberry Country-A Plan for South Deschutes County Good morning Commissioners Baney, Unger and DeBone, Please include this additional written testimony, submitted at 11 :05 a.m. into the Public ReCO/d re: Newberry Country-A Plan for South Deschutes County. WE, the public are weighing in regarding the proposed DEQ language and stoWs 2" aJd 3rd comments on page 6 of the potential revisions. I disagree that striking the suggested DEQ groundwater references also 'undermines the justification for the BLM land transfer' in 1998 that led to the creation of the Neighborhood Planning Area in LaPine and the transferable development credit (TDC) program (page 6 of ! suggested revisions.) 1. How long do we have to 'carry forward' justification for the' 1998 land transfer' wich successfully occurred 15 years ago? It is well documented; I fail to see the connect on between the 1998 land transfer and staff s attempt to justify 'potentially damaging' EQ proposed language on page 36 in this PLAN, and, 2. The TDC program was a failure. Again, I fail to see how its mention justifies staff~ attempt to use the same DEQ proposed language. The language may belong on DEQ's website, but it does not belong in our PLAN. 1 i The citizens did not request this language. This language falls short of being substantial, timely or useful in the context of our Newberry Country Plan; nor is it conducive to the VISION the citizens set forth. The language is 'potentially detrimental' to the progress that has been made in identifying common ground and shared goals acknowledged by residents and policy makers alike in both North Klamath and South Deschutes Counties. Why undermine, damage or possibly sabotage the good will between counties? I am respectfully requesting for the Board of County Commissioners to 'delete' the proposed DEQ language from our Plan. Thank you, Judy Forsythe 2 #" . Peter Gutowsk From: Nick Lelack Sent: Friday, March 29, 20132:28 PM To: Peter Gutowsky Subject: Fwd: WRITTEN TESTIMONY: Newberry Country - A Plan for South Deschutes Cunty Nick Lelack Deschutes County 541-639-5585 Sent from my iPhone Begin forwarded message: From: Judy Forsythe <judybug7669@g.com> Date: March 29, 2013, 11 :25:03 AM PDT To: Tammy Baney <rammy.Baney@deschutes.org>, Alan Unger <Alan.Unger@deschutes.org>, Tony DeBone <rony.DeBone@deschutes.org>, Nick Lelack <Nick.Lelack@deschutes.org> Subject: WRITTEN TESTIMONY: Newberry Country -A Plan for South Deschutes County Good morning Commissioners Baney, Unger and DeBone, Please include this additional written testimony submitted at 11 :25 a.m. into the public record for Newberry Country-A Plan for South Deschutes County. I disagree with the 'substance' of the language from the DEQ website and the staff's ! 'repeated' attempts since Nov. 8 th 2012 to include such in our Newberry Country Plan. Ihe 'thrust' of the selected DEQ language 'unfavorably' includes and could 'negatively impact' o. r neighbors in N. Klamath County. Ins unjustified here and 'unbecoming' of our county staff whose obligations include 'recognizing a special responsibility to plan for the needs of the disadvantaged'. Staffs inclusion of this language is inappropriate to the situation, unnecessar to justify FINDINGS and could be construed as 'reckless indifference'. We, the public are weighing in: this 'narrative' language -not introduced by the public -and not required to justify FINDINGS -could realistically contribute to declining/damaging property values in both N. Klamath County as well as negatively impacting property values in South ! Deschutes County-while all the time - a solution is being sought. Therefore, while we can see no positive benefit, whatsoever, for including this DEQ language we do see potential 'harm and distress' for the communities mentioned. 1 .... Please help us 'polish' this Plan for South Deschutes County with a sense of forward thinking knowing we 'did no harm'. Please delete the DEQ language intetjected by county staff. Respectfull y, Judy Forsythe 2 MEMORANDUM DATE: March 21, 2012 TO: Deschutes County Board of Commissioners FROM: Peter Gutowsky, Principal Planner RE: Newberry Country: A Plan for Southern Deschutes County / Work Session The Deschutes County Board of Commissioners (BOCC) conducted its second hearing on March 12, 6:00 p.m. at the Sunriver Homeowners Aquatic and Recreation Center to take public testimony on Newberry Country: A Plan for Southern Deschutes County.1 At the conclusion of the meeting, the BOCC closed the record for oral testimony, but left the written record open until March 29 at 5:00 p.m. The BOCC is holding a work session on the Newberry Plan on April 3 at 1:30 p.m. The purpose is to discuss suggested revisions raised during the BOCC’s two public hearings to determine which sections of the Plan warrant revision. Attached is a matrix that includes a column to allow staff, in certain instances, to provide additional context on a particular issue. In most cases, the potential revisions speak for themselves. An updated matrix will be provided at the work session to capture written testimony submitted by the March 29 deadline. After receiving the BOCC’s direction at the work session, staff will then schedule a regular meeting for the BOCC to deliberate and consider first reading of Ordinance 2013-007.2 A tentative date is Monday, April 15 at 10:00 a.m. 1 http://www.deschutes.org/southcountyplan 2 Ordinance 2013-007 officially adopts Newberry Country: A Plan for Southern Deschutes County into the Deschutes County Comprehensive Plan. Newberry Country: A Plan for Southern Deschutes County / Potential Revisions Section Suggested Revisions Comments Introduction (page 3) Add Language: County adopts a Transferable Development Credit Program to reduce residential density in rural areas to meet the carrying capacity of onsite sewage systems and protect high priority deer migration corridors. Deschutes County Code recognizes eligible lots or parcels located in the High Priority Deer Migration Corridor Area (DCC 11.12.030B2). They are eligible to receive one-half of a TDC. Policy 2.6 (page 9) Add Policy: Policy 2.6 Partner with the real estate community and others to provide education materials for new residents and/or property owners about rural lifestyles, including: a. Non-urban levels of public services (e.g. unpaved roads); b. Fire prevention; c. Noxious weeds; d. River and groundwater management; and e. Preservation of wildlife habitat; and f. Streamside stewardship information and requirements. - Policy 2.8 (page 9) Add Policy: Policy 2.8 Support and encourage a diverse array of community partners to collaborate on comprehensive substance abuse prevention best practices. - Policy 2.9 (page 9) Add Policy: Policy 2.9 Promote community and individual engagement in comprehensive substance abuse prevention best practices as a means for promoting self-sufficiency. - Policy 2.10 (page 9) Add Policy: Policy 2.10 Cultivate an understanding of the causes of poverty and its impact on citizens and community in order to provide opportunities for citizens to move out of it - -3- Newberry Country: A Plan for Southern Deschutes County / Potential Revisions Section Suggested Revisions Comments Policy 3.1 (page 10) Add Policy: Policy 3.1 Collaborate with the South County community and City of La Pine to address: a. Business expansion and recruitment, including adding another grocery store and a movie theater; b. A 24-hour health care facility; c. Coordination among health care providers and clinics; d. Community greenhouses; e. Affordable senior housing and/or aging in place programs; f. Trail development suitable for walking, biking and equestrian use;; g. Farmer’s markets; h. Public transportation; i. La Pine Neighborhood Planning Area (the area bounded by Burgess Road, US 97, 1st Street and Huntington Road); j. Post-high school education, employment retraining, adult learning, and vocational programs; k. Meeting locations allowing for remote teleconferencing; and l. Business practices which negatively impact substance abuse; and m. Other projects as identified. - Policy 3.4 (page 10) Add Policy: Policy 3.4 Develop a master plan to address the infrastructure challenges facing the rural, undeveloped lots in southern Deschutes County - Policy 6.1 (page 12) Add Policy: Policy 6.1 Promote La Pine as a regional commercial and employment center, through concepts such as: a. Maintaining and supporting La Pine’s representation on Economic Development for Central Oregon’s (EDCO) Board; b. Coordinating as needed with EDCO, La Pine and Sunriver Chambers of Commerce, Sunriver, the City of La Pine, and others to promote economic development opportunities; and c. Collaborating with Klamath County, Gilchrest and Crescent; and d. Encourage business support and participation in substance abuse best practices which foster a successful youth and a strong employment base. - -4- Newberry Country: A Plan for Southern Deschutes County / Potential Revisions Section Suggested Revisions Comments Policy 9.2 (page 13) Corrects Typos: Conduct a joint Board of County Commissioner/Planning Commission meeting with public comments in Newberry Country on the South County/Northern Klamath County steering committee to address its recommendations. Conduct a joint Board of County Commissioner/Planning Commission meeting hearing in Newberry Country to: a. Discuss the South County/Northern Klamath County steering committee recommendations; and b. Allow for public comments. The BOCC may want to invite DEQ to participate in the hearing. Policy could be rewritten as follows: Invite the Oregon Department of Environmental Quality to participate in a joint Board of County Commissioner/Planning Commission hearing in Newberry Country to: a. Discuss the South County/Northern Klamath County steering committee recommendations; and b. Allow for public comments. Policy 12.5 (page 14) Add Policy: Policy 12.5 Encourage the use of partnering agency resources for comprehensive substance abuse prevention strategies in order to reduce impaired walking, cycling and driving. - Policy 16.7 (page 16) Add Language: Support efforts to expand recycling opportunities and community composting, including woody debris and curbside recycling, if feasible. - Policy 16.11 (page 16) Add Language: Participate in the Deschutes River Conservancy efforts to work with all partners including the U.S. Forest Service, Upper Deschutes Watershed Council and County officials in the upper Deschutes Basin on a comprehensive water management plan that restores and manages flows in the upper Deschutes River while meeting the needs of users and property owners. - Policy 16.12 (page 16) Add Policy: Policy 16.12 Consider an ordinance to limit the number of livestock allowed on small acreages in order to limit nitrates from entering the groundwater and protecting public health. - -5- Newberry Country: A Plan for Southern Deschutes County / Potential Revisions Section Suggested Revisions Comments Policy 16.13 (page 16) Add Policy: Policy 16.13 Provide information about: a. Maintaining native streamside vegetation in wetlands and floodplains to protect water quality; and b. Negative effects of fertilizers, lawns, and non-native grasses impacting wetlands, floodplains and streams. - Policy 17.2 (page 17) Add Language: 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. - Policy Topics (page 19) Change Graphic: Change the Figure 4 graphic to better reflect partnerships and collaboration - Policy Topics (page 24) Corrects Typos: Table 4 - Wildlife Area Combining Combing Zone - -6- Newberry Country: A Plan for Southern Deschutes County / Potential Revisions Section Suggested Revisions Comments Policy Topics; Groundwater Quality (page 36) Strikeout. Sentence Reads: The DEQ, the US Geological Survey and Deschutes County have determined that the safety of the groundwater in southern Deschutes and northern Klamath counties is threatened by nitrate contamination from traditional onsite septic wastewater treatment systems. The groundwater aquifer provides the drinking water source for most residents in this area. Most wells tap into an aquifer within 50 feet of the ground surface. The aquifers have no natural barriers to the ground surface and are very vulnerable to contamination from the surface. Groundwater in the southern Deschutes and northern Klamath aquifer is becoming contaminated with the nitrate at unsafe levels. Infants and pregnant or nursing women are especially vulnerable to increased nitrate levels. High levels of nitrate may also cause other health problems. To protect the quality of the drinking water in the aquifer, Deschutes County passed an ordinance in 2008 requiring upgrades on all septic systems; voters overturned the ordinance in a special election in March 2009. Deschutes County asked DEQ to take the lead to resolve the issue. Since 2010, DEQ has assembled a steering committee of community members to discuss and make recommendations to improve groundwater protection in southern Deschutes and northern Klamath counties. (http://www.deq.state.or.us/wq/onsite/sdesch-nklam.htm). This paragraph was taken directly from the Oregon Department of Environmental Quality’s Onsite Wastewater Management Program (Septic Systems) website that focuses exclusively on S. Deschutes / N. Klamath Groundwater Protection Project. The Oregon land-use program requires findings to demonstrate consistency with the statewide planning goals and Deschutes County’s Comprehensive Plan. There is no evidence in the record to demonstrate that the safety of groundwater is not threatened by nitrate contamination from septic systems. Striking the suggested groundwater references also undermines the justification for the BLM land transfer in 1998 that led to the creation the Neighborhood Planning Area in La Pine and the transferable development credit (TDC) program. Policy Topics (page 36) Corrects Typos: Sentence Reads: South Deschutes County is known for its wildlife diversity. The Oregon Department of Fish and Wildlife recognize the following keynote species and habitats. The first two are recognized in Deschutes County’s Wildlife Area Habitat Combining Zone. - Appendix 1 (Appendix 1- 2) Add and Strikeout Language: Support the leadership of Collaborate with the Oregon Department of Environmental Quality in working with the community to address groundwater protection issues - -7- Newberry Country: A Plan for Southern Deschutes County / Potential Revisions Section Suggested Revisions Comments Appendix 1 (Appendix 1- 2) Add and Strikeout Language: Control and maintain livestock manure on-site to protect water quality and take measures to ensure that it does not leach into or contaminate ground or surface water. - Appendix 2 (Appendix 2- 2) Add Language: Develop an ordinance to limit livestock numbers on small acreages Require landowners with livestock to protect stream banks and streamside vegetation Require proper agricultural use of rivers, riparian areas and wetlands to prevent water pollution - Appendix 2 (Appendix 2- 4) Reorganize: Place the theme, “Minimize Role of Government,” higher in the Appendix 2 list - r Newberry Country: A Plan for Southern Deschutes County Groundwater Quality Reference - A Spectrum of Options No Description I I Descriptive I I Very Descriptive ~ ............... Alternative A II Alternative B No reference to groundwater quality - Incorporate just references to groundwat_e_r __ resources Alternative C Modify Oregon Department of Environmental Quality (DEQ) reference to groundwater quality Alternative 0 Maintain DEQ's existing reference to groundwater quality Alternative E Maintain Comprehensive Plan's existing RPS reference to groundwater quality .--­ Alternative F Incorporate Dick Petersen, DEQ Director, recent --, reference -~ groundwater quality Alternative A Proposed Edit Staff Comments Strikea~t. Sentence Reads: The OEQ, the US GealagiEal S~r..!ey aREI OesEh~tes Ca~nty have determined that the safety af the gra~nd'l{ater in sa~thern OesEh~tes and narthern Klamath Ea~nties is threatened ey nitrate e:entaminatian fram traditianal ansite seratiE waste .....ater treatment systems. The groundwater aquifer provides the drinking water source for most residents in this area. Most wells tap into an aquifer within SO feet of the ground surface. The aquifers have no natural barriers to the ground surface and are very vulnerable to contamination from the surface. Gra~ndwater in the sa~thern OesEh~tes and narthern Klamath aEl~ifer is eee:eming Eantaminated with the nitrate at ~nsafe le~'els . Infants and raregnant ar n~rsing wamen are esraeEially ¥~Ineraele ta inEFeased nitrate le'leis . I-ligh levels af nitrate may alsa Ea~se ather health raraelems. To protect the quality of the drinking water in the aquifer, Deschutes County passed an ordinance in 2008 requiring upgrades on all septic systems; voters overturned the ordinance in a special election in March 2009. Deschutes The Oregon land-use program requires findings to demonstrate consistency with the statewide planning goals and Deschutes County's Comprehensive Plan , specifically in this case, Goal 6 (Air, Water and Land Resource Quality). There is no evidence in the record to demonstrate that the safety of groundwater is not threatened by nitrate contamination from septic systems . Deschutes County currently administers several programs directly related to groundwater quality in the area : • Todd Cleveland, an Environmental Health Specialist coordinates with Bill Mason, DEQ hydrologist to receive a state determination of which properties in South County require alternative treatment technology (ATIs) . Several areas in the region have received such a determination. • County staff currently administers a Transferable Development Credit / Pollution Credit program pertaining to rural development and credits required for developing the Neighborhood Planning Area (NPA) in La Pine . The NPA was a direct result of the conveyance of federal land to Deschutes County for the specific purpose to protect the public's interest in clean water in the aquifer that provides drinking water for of Deschutes County and assist in the implementation of Regional Problem Solving . • Deschutes County provides low interest loans through Neighborhood Impact to assist residents requiring septic system upgrades County asked DEQ to take the lead to resolve the issue. Since 2010, DEQ has assembled a steering committee of community members to discuss and make recommendations to improve groundwater protection in southern Deschutes and northern Klamath counties. • Deschutes County also administers a partnership fund, which recently helped fund a Sunriver Sewer Feasibility Study • Maintaining a reference to groundwater quality provides the basis for Newberry Country Plan Policies 9.1 and 9.2 Deschutes County is also participating with DEQ's So. Deschutes Co . / Northern Klamath Co . Groundwater Protection Project. Staff regularly attends monthly steering committee meetings. The Committee was convened to discuss and make recommendations to improve groundwater protection. This group has met know for over 36 months. -2­ ... '" Alternati,ve B Proposed Edit Stril<eo\:;lt entire Gro\:;lnswater Q\:;Iality reference and add. Sentence Reads: Groundwater The interaction between ground water and streams is controlled largely by the relative elevations of the water table and adjacent streams. In the La Pine subbasin, south of Benham Falls, the water-table elevation is near land surface. Stream gains and losses along most of the Deschutes and Little Deschutes Rivers in this area are small, indicating relatively little net exchange between ground water and surface water. North of Benham Falls, the northward slol2e of the water table is larger than the slol2e of the See comments for Alternative A land surface, so del2ths to ground water increase northward toward Bend. In the central and eastern l2arts of the study area, ground-water elevations are tYl2icaily hundreds of feet below the elevations of streams. Although ground-water levels are considerably below stream elevations in this area, streams do not lose al2l2reciable amounts of water, because streambeds have been largely sealed by infiltration of fine sediment. One notable excel2tion is the Deschutes River, which loses on average al2l2rOximately 113 ft3Ls between Sunriver and Bend, likely into the youthful Holocene basalt erupted from Lava Butte. Staff Comments -3­ Alternative C Proposed Edit Staff Comments Strii<eoloJt. Sentence Reads: The DEQ, the US Geological Survey and Deschutes County have determined that the safety of the groundwater in southern Deschutes and northern Klamath counties is threatened by nitrate contamination from traditional onsite septic wastewater treatment systems. The groundwater aquifer provides the drinking water source for most residents in this area. Most wells tap into an aquifer within 50 feet of the ground surface. The aquifers have no natural barriers to the ground surface and are very vulnerable to contamination from the surface. Groundwater in the This alternative removes the references to "unsafe levels and references to infants southern Deschutes and northern Klamath aquifer is becoming and pregnant or nursing women" and lets the reader instead infer from the other contaminated with the nitrate at loJnsafe le'rels. Infants and pregnant or sentences that nitrates are a health problem. nloJrsing wornen are especially 'rloJlnerable to increased nitrate levels. I=Ugh le'rels of nitrate rnay also caloJse other health problerns. To protect the quality of the drinking water in the aquifer, Deschutes County passed an ordinance in 2008 requiring upgrades on all septic systems; voters overturned the ordinance in a special election in March 2009. Deschutes County asked DEQ to take the lead to resolve the issue. Since 2010, DEQ has assembled a steering committee of community members to discuss and make recommendations to improve groundwater protection in southern Deschutes and northern Klamath counties. -4­ r Alternative 0 Proposed Edit Staff Comments No change. Sentence Reads : The DEQ the US Geological Survey and Deschutes County have determined that the safety of the groundwater in southern Deschutes and northern Klamath counties is threatened by nitrate contamination from traditional on site septic wastewater treatment systems . The groundwater aquifer provides the drinking water source for most residents in this area . Most wells tap into an aquifer within SO feet of the ground surface . The aquifers have no natural barriers to the ground surface and are very vulnerable to contamination from the surface. Groundwater in the southern Deschutes and northern Klamath aquifer is becoming contaminated with the nitrate at unsafe levels. Infants and pregnant or Knowing that the topic of groundwater quality in South County has a long and storied history, County staff deliberately relied on the DEQ description . This description was released in February 2012, along with other statements describing the existing conditions in South County during public open houses , community meetings, and presentations to homeowners associations and stakeholder groups. nursing women are especially vulnerable to increased nitrate levels . High levels of nitrate may also cause other health problems . To protect the quality of the drinking water in the aquifer, Deschutes County passed an ordinance in 2008 requiring upgrades on all septic systems ; voters overturned the ordinance in a special election in March 2009 . Deschutes County asked DEQ to take the lead to resolve the issue. Since 2010, DEQ has assembled a steering committee of community members to discuss and make recommendations to improve groundwater protection in southern Deschutes and northern Klamath counties. It was directly incorporated into the first draft of the Newberry Plan, released in late August 2012 . The Deschutes County Planning Commission in December, after receiving testimony on this matter, unanimously recommended to the Board of County Commissioners to maintain the existing language . -5­ Alternative E Proposed Edit Staff Comments Strilwol;Jt entire Grol;Jnelwater Ql;Jality reference and add : Sentence Reads : The develol)ment of thousands of small lots in the RPS l)roject area is sUl)eriml)osed ul)on highl~ l)ermeable, ral)idl~ draining soils and a high groundwater table with relativel~ cold-water teml)eratures. The overwhelming majorit~ of the lots are served b~ on-site sewage disl)osal s~stems (sel)tic s~stemsl. including standard drain fields, cal) and fill s~stems, and more recentl~ sand-filter s~stems. Nitrates, a b~-l)roduct of sel)tic s~stems and an indicator of human l)athogens, are l)oorl~ retained in the fast draining soils and do not easil~ break down due to the cool groundwater teml)erature. As a result, loading of nitrates occurs in the shallow groundwater aguifer that underlies this region. The l)resence of a high level of nitrates is of great concern because this same aguifer is the source of drinking water for the residents in the area. A recent US Geological Surve~ stud~ of groundwater in Central Oregon concludes that groundwater in the area is connected to nearb~ surface These statements are taken directly out of Ordinance No. 98-085, which amended waters, including the Deschutes and Little Deschutes Rivers. Through the Deschutes County's Comprehensive plan to recognize Regional Problem Solving and saml)ling of numerous wells in the RPS l)roject area the Oregon that groundwater quality in the area is diminishing, according to the Oregon Del)artment of Environmental Qualit~ {DEQl is l)redicting that nitrate in Department of Environmental Quality. the groundwater will al)l)roach unsafe levels, l)rincil)all~ as a result of the cumulative effect of sewage disl)osal with on-site sel)tic s~stems, in the near future . Levels of nitrate are elevated in several localized areas within the RPS l)roject area. However the maiorit~ of wells show ver~ low nitrate levels at this time and surface water contamination has not been documented. Due to the existing l)attern and densit~ of develol)ment DEQ is l)redicting that nitrate levels will continue to increase over time, even if measures were taken now to alter the develol)ment l)attern in the RPS l)roject area. If measures are dela~ed much longer, the conseguences could become more serious, l)ossibl~ resulting in unsafe levels of nitrates in groundwater and drinking water. More definitive information is eXl)ected to be available in the next few ~ears, regarding the timing of nitrate movement in groundwater and the overall iml)act of nitrate from sel)tic s~stems to -6­ I" groundwater and possible surface water pollution. The DEQ and Deschutes County will complete additional groundwater investigations and testing of innovative sewage treatment and disposal systems to reduce the impact on groundwater from nitrogen in household sewage, with grants from the US Environmental Protection Agency. The results from these studies will not be known for several years. Studying different approaches to on-site sewage treatment and disposal may lead to affordable technological advances that can be applied to new and possibly existing systems. In the meantime, the region will continue to grow and nitrate loading from on­ site systems will continue to increase. Some measures may need to be implemented in the future to address groundwater pollution and other impacts that could result from the development of the thousands of small size subdivided lots in South Deschutes County. The creation of a new neighborhood between La Pine and Wickiup Junction as an alternative to building fewer houses on the remaining vacant small lots appears to hold much promise. A market­ driven transferable development credits program could assist in the redirection of growth from the existing subdivisions into this new neighborhood. A development standard or sewage disposal rule that requires an effective lot area of 1.5 acres for new dwellings served by an on-site septic system may need to be considered. The acreage requirement would need to be based on the long-term balance between nitrate loading from septic systems and dilution from precipitation that infiltrates the land. An effective lot area should include contiguous or non-contiguous vacant land within a specified distance from the proposed building site. For these reasons, Deschutes County has determined that it is appropriate to adopt comprehensive plan goals and policies to recognize the importance in protecting groundwater and other resources and the need to continue to work on the RPS project for South Deschutes County. Nitrates -Health and groundwater impacts; septic system impacts and studies -+-Hfgh levels ofnitratesii1drinklng water are a cause of methemoglobinernli1 I -7­ (blue baby syndrome) in infants and have been linked to cancer and weakening of immune system in the elderly. Recent epidemiologic studies indicate that chronic long-term exposure to low levels (2.5 mg/L) of nitrates can increase the risks for certain types of cancers. Nitrate levels are often used as an indicator for the transmission capabilities of other pathogenic agents. Surface waters are very sensitive to eutrophication by the addition of nutrients; nitrate is an indicator of nutrient loading. A natural background level of nitrates would be less than 1 mg/L. The Environmental Protection Agency (EPA) has set the safe water drinking standard (Maximum Contaminant Level or MCL) for nitrate at 10 mg/L. The DEQ is required to declare a region a Groundwater Management Area if nitrate concentration reaches 7 mg/L. This would require a plan to protect and restore groundwater quality. Deschutes County Planning and Environmental Health are only slightly ahead by starting and developing their plans proactively. On-site septic systems are the only significant source of nitrates in the La Pine sub-basin. The La Pine sub-basin has many conditions that allow for little denitrification of wastewater to occur: rapidly draining soil. shallow, well oxygenated groundwater, very short growing season, cold temperature, not much hydraulic gradient. Most of the development has taken place in the very bottom of the sub-basin over shallow groundwater and on small lots served by wells from an unconfined aquifer. In 1980-81 contamination of the aquifer from septic systems had already occurred in the La Pine core area. (La Pine Aquifer Management Plan, Century West. 1982). A community sewer system was required to remedy the situation. A 1995 well monitoring study by DEQ showed that after 11 years of sewer, the nitrate levels in the La Pine core area had receded but were still at "unsafe levels." This is an indication that the recovery time for the aquifer is lengthy. The 1995 monitoring study also revealed the existence of five areas in the RPS project area, not including the core area of La Pine, where nitrate levels are greater than usual background levels. Nitrate levels are as high as 4.8 to 5.9 mg/L in three of these areas and as high as 3 mg/L in the other two. -8­ ~ The 1995 monitoring study was part of a modeling effort by the DEQ to estimate the impact of septic systems on the groundwater. The initial results of the model indicate that at existing (1994) development the aquifer would reach nitrate levels of 7 mgtl by 2005. Since the collection of samples in 1994 there are approximately 700 additional residences in the RPS project area using on-site septic systems. The model is limited because it is two-dimensional and does not account for flow in or out of its boundaries. A grant from the US Environmental Protection Agency will allow significant work to begin in 1999 to help with a solution to the problem of high nitrate levels. The primary purpose of the grant is to study new technologies in on-site septic systems. Part of the grant will be used to continue increasing the groundwater monitoring network and complete additional analysis of nitrate movement in the groundwater using a three dimensional model. The innovative septic system program was started in 1998 through the RPS project and DEQ grant funding and is expected to increase significantly with the new federal grant. The purpose is to try new technologies that appear to be capable of reducing nitrate levels. Besides nitrate reduction there are many other aspects of new technology that need to be examined before widespread applications for the general public can occur. Over the past five years the USGS has developed a groundwater flow model of the entire Upper Deschutes Basin. The model will be used as the basis for an analysis of the impacts of nitrates from on-site systems to help answer the following three questions: rn Where should additional monitoring wells be set up for continuous monitoring of nitrate plumes from residential development? III What density does development need to be set at to minimize impact on groundwater quality? rn What variations of impact due to location are there in the La Pine sub-basin? The DEQ rules require a minimum of an acre for standard system and a half-acre for pressure or sand filters in rapidlv draining soils. This is a -9­ statewide rule and the authors were probably looking at rainfall amount from a typical Willamette Valley year to provide dilution. Mixing wastewater from a typical single-family residence with the recharge provided by yearly precipitation in Southern Deschutes County, it requires 2.5 acres for a standard system and 1.5 acres for a sand filter to maintain a recharge concentration at or below 7 mgt!. This estimate is on the conservative side because it does not account for inflow, outflow, or upflow from other areas. Areas such as Fall River Estates, Wild River and Ponderosa Pines do not require as much acreage to achieve an adequate amount of mixing and dilution of nitrates because they are located in areas of higher precipitation at the western edge of the aquifer. Also, the aquifer gradient is steeper resulting in more dilution due to higher groundwater flow rates. La Pine and portions of Oregon Water Wonderland and Stage Stop Meadows subdivisions served by sewer systems are also not contributing to the overall nitrate-loading problem in the region. -10­ I Alternative F Proposed Edit Stril<esl:Jt entire Grsl:Jnelwater Ql:lality reFerence and add: Sentence Reads: Residents of south Deschutes County face challenging wastewater disQosal conditions. Soils in that area drain raQidly and groundwater is near the surface in many locations. As an examQle, groundwater contamination in the downtown core of La Pine became so severe in the early 1980s that the city constructed a sewer system Qroviding better treatment and land disQosal of wastewater in order to reduce nitrogen concentrations in drinking water sUQQlies . The oQeration of this sewer system has resulted in markedly imQroved groundwater guality in that downtown core. Monitoring wells for the wastewater treatment Qlant have demonstrated steadily imQroving groundwater conditions following imQroved treatment and disQosal. This historical contamination is both evidence of the vulnerability of the groundwater aguifer and a cause for concern throughout the area. The soil and groundwater conditions in La Pine are similar to those throughout much of southern Deschutes and northern Klamath Counties. Studies of groundwater contamination, hydrology and nitrates were conducted in southern Deschutes County beginning in the late 1970s. The early well monitoring and analysis in the City of La Pine described above was Qerformed in resQonse to very high nitrate concentrations in drinking water. Nitrate concentrations in drinking water wells commonly exceeded the drinking water standard of 10mgLL nitrate and were elevated as high as 42mgLL. EPA set a maximum contaminant level of 10 Qarts Qer million for nitrate, as N03-N, for drinking water. DEQ must use the established standards and levels when develoQing its standards and rules. A survey of groundwater data in 1993 and mathematical modeling in 1995 by DEQ indicated elevated nitrate concentrations and concern for future aguifer wide increases. This concern translated into a desire for a more comQrehensive understanding of the aguifer. A Regional Problem Solving Qroject Staff Comments Dick Pedersen, DEQ Director wrote a report to the Oregon Environmental Quality Commission on January 16, 2013 regarding a petition from South County residents requesting several amendments to the statewide onsite wastewater treatment system program rules. These statements, describing the local conditions in South County, were taken directly out of the report. -11­ recommended more sophisticated modeling of the aquifer and pollutant sources. The U.s. Geological Survey completed a La Pine National Demonstration Project and Mathematical Modeling survey in 2007. The demonstration project was designed to test innovative treatment technologies that could reduce nitrogen loading to groundwater from onsite systems. USGS produced a three dimensional mathematical model to estimate nitrates in the shallow aquifer of a large area in southern Deschutes and northern Klamath Counties. These studies generally reached the conclusion that the groundwater aquifer is vulnerable to increasing concentrations of nitrates and other contaminants associated with domestic sewage. The USGS study predicted nitrate concentrations increasing above the federally adopted drinking water standards throughout the area over time. DEQ and Deschutes County have been working cooperatively for more than a decade to find an appropriate solution to this growing concern. In 2008, the county adopted ordinances effectively requiring ATT systems to reduce nitrate concentrations in wastewater. These ordinances were repealed by the county in 2011 as the result of a successful citizens' referendum in 2009. In October 2009, Deschutes County Commissioners requested that DEQ take over the effort to find appropriate solutions to the concerns about increasing groundwater contamination. Since that time, DEQ has engaged a steering committee comprised of Deschutes and Klamath County residents to consider local circumstances and make recommendations for a long-term solution. DEQ anticipates final recommendations from the committee by spring 2013. -12­ ... Deschutes County-Jail Expansion Debt Service Options Net Proceeds $8.4 million Bond Issue Amortization Period 120 Years J25 Years _. [3OVears J All-in True Interest Cost :p fJ 3.34% 3.56% Annual Debt Service 564~OOO 500,000 460,000..1 Total Debt Service 11,326,000 12,555,000 13,858,000 Jail Bond Project Budget 600,000 Amount currently in Fund 456 1,250,000 Transfer from Fund 143 (Capital Reserve) in FY 2013 750,000 Transfer from General Fund in FY 2013 2,600,000 8,400,000 Bond Issue 11,000,000 Total Project (600,000) To be spent before July 1, 2013 10,400,000 FY 2014 Budget in Fund 456 Bethlehem Inn Funds needed to eliminate negative balance 2,750,000 Annual Debt Service 200,000 Solid Waste Loan to Jail Project Funds needed to eliminate loan from Solid Waste 3,300,000 Annual Debt Service 240,000 Deschute. County Finanee DepartJent Martoy w,nne. Fin __ D....... end .......11.... February 22, 2013 S & S Pence Investments Sunset Lodging Attn: Scott Pence PO Box 3S1S Sunriver OR 97701 Re: Deschutes County Transient Room Tax Based on our meeting of February 14,2013 in regard to transient room taxes due Deschutes County. we have projected the IIIIlOunts due pursuant to a repayment schedule which you agreed to provide: 1. Taxes owing for August and September 2012 projected to June 30, 2013 total $57,207.33. Repayment ofthese taxes to be completed by June 30, 2013. 2. Taxes due relative to cleaning and internet access fees for the period of September 2009 thru August 2012 projected thru June 30, 2014 total $13,231.88. Repayment ofthese taxes to be completed by June 30,2014. The attached spreadsheet details the transient room taxes due and projected penalties and interest Please review this information and respond back to us by Marcb 8, 2013 with your coniumation ofthe proposal, I detailing the repayment schedule. IBased upon your stated intention to satisfY these obligations over the nest two years, I wanted to inform you that the code requires that 1 submit Ihis matter to the Board of County Commissioners with your II requested extension of time. The Board will also address the assessment of penalties, otherwise imposed • by the code. I will recommend that the Board grant the extension and, assuming payments are received in I a.c:cordance with the approved cxtensjon. that the Board waive assessment of penalties totaling $13.662.67. Please be advised that if1he extension is granted interest will accrue at the rate ofone percent (1%) per mouth on the amount afTax due. Sincerely. rn~ Marty Wynne Tax Administrator C: Tom Anderson, Interim County Administrator Mark Pilliod, Legal Counsel Cheryl Circle, Finance Department PRNATE AND CONFIDENTIAL INFORMATION Projected thru June 30,2013 Deschutes County Transient Room Tax -Calculations on penalty and interest Acct tn2 -Sunset Mgmt & Maintenance Penaltr Total Due $ 41,626.249130112 August Room Taxes Due 1011/12 Penalty &Interest Due 4,162.62 208.13 10/31/12 September Room Taxes 10,466.17 11/1112 Penalty & Interest Due (Aug) 6,243.94 208.13 Penalty & Interest Due (Sept) 1,046.62 52.33 1211112 Penalty (Sept) & Interest Due 1,569.93 260.46 1/1/13 Interest Due 260.46 211113 Interest Due 260.46 2114113 Payment Received 311/13 Interest Due 210.46 411113 Interest Due 210.46 511/13 Interest Due 210.46 6/1/13 Interest Due 210.46 $ 45,996.99 $ 56,463.16 $ 62,915.23 $ &4,014.18 $ 65,844.57 $ 66,105.03 $ 66,365.49 (10,000.00) $ 56,365.49 $ 56,575.95 $ 56,786.41 $ 56,996.87 $ 57,207.33 $41,626.24 $10,466.17 $13,023.11 $2,091.81 Transient Room Tax Ordinance Chapter 4.08 4.08.160 -Penalties and Interest· Delinquency Arty Operator who has not been granted an extension of time for remittance of Tax due and who fails to remit any Tax imposed by OCC 4.08 prior to delinquency shall pay a penalty of ten percent (10%) of the amount of the Tax due In addition to the amount of the Tax. 4.08.170 -Penalties and Intefest -Continued Delinquency Arty Operator who has not been granted an extension of time fOr remittance of Tax due, and who fails to pay any delinquent remittance on or befOre thirty (30) days following the date on which the remittance first became delinquent shaH pay a $ec:ond delinquency penalty offilleen (15%) of the amount of the Tax due plus the amount of Tax and the ten percent (10%) penalty first imposed. 4.08.190 • Penalties and II1fernt • Assessment of Interest ---Ifl-additIon~impQHCI,any Operator whofaUs to cemittbe.Tax imposed by DeC 4.oalhel~El{elll _~_~.. at the rate of ol1l!H1alf of one percent per month, or fraction thereof, without proration for portions of a monti'!, on the amount of the Tax due, exclusive of penalties, from the date on which the remlttan<:e first became delinquent unlil paid. $(10,000.00) $ 57,207.33 PRIVATE AND CONFIDENTIAL INFORMATION Projected thru June 30, 2014 Deschulea County Transient Room TalC -CalculatiOIlI on penalty and interest Ac:ct fl.72 -Sunset Mgmt & Maintenance Cleaning Fees & High Speed IntemetAcceu 1122113 Sept 2009 -Aug 2012 add'i taxes due 211/13 Penalty & Inlerest Due 5,485.07 273.25 $ 60,389.01 311/13 Penalty & tnleras! Due 6,197.60 273.25 $ 68,659.87 411/13 InterntDue 273.25 $ 69,133.12 511/13 Interest Due 273.25 $ 89,406.37 611/13 Interast Due 273.25 $ 89.679.63 7/1113 Interest Due 273.25 $ 89,952.86 611/13 Interas! Due 273.25 $ 70,226.13 611/13 Interest Due 273.25 $ 70,499.38 911/13 Interest Due 21'3.25 $ 70.772.63 1011/13 Interest Due 273.25 $ 71,045.88 11/1/13 Interest Due 273.25 $ 71,319.13 1211/13 Interest Due 273.25 $ 71,592.38 1/1/14 Interest Due 21'3.25 $ 71.865.63 211/14 Interest Due 273.25 $ 72,138.68 311114 Interest Due 273.25 $ 72,412.13 411/14 Interest Due 273.25 $ 72,685.38 511/14 Internt Due 273.25 $ 72,958.63 611114 IntliNe&t Due 273.25 $ 73,231.88 $54.650.89 $ 13,662.67 $ 4,918.51 $ $ 73.231.88 Transient Room Tax Ordlnanc:e Chapter 4.08 4..08.160 • PeftaItiea and Interest -Dennquency Any Operator who hils not been granted an extel1$ion of time for remittance of Tax due and who tails to remit all)' Tax impoaed by DCC 4.08 prior to delinquency shal pay a penalty of len percent (10%) oftha amount of the Tax due In addition to the amount of the Tax. 4.08.170 -hnaItIM and InteNlll-Continued DelInquency Ant OperalOr wbo has not been granled an extension of lime for remittance of Tax due, and who talls to pay any delinquent ramItIance on or before thirty (30) days following 1M dale on which the remittance first became delinquent shall pay a sec:ond delinquency penalty of fifteen (15%) of the amount of the Tax due plus the amount ofTax and the ten percent (11)11\) penalty first ImpOaed. 4.08.110· PeneItIe, and I ....t ·.Aa8ea&ment of Interest 1n-'dition~penaIIIe&impoaad,..ny Opel8torwbo fallsJQJllmiUMl'ax~~DCC 4.08 shaH pay interest at the rate of one-haIf of one percent per month, or fraction thereof, without proration for portIOns of Ii month; 0ri1llB . -.-~ ­ amount of Ihe Tax due. 8)(clU81ve of penalties, from Ihe date on which the remittance first became delinquent until paid. Sunse l~Sunriver\lacation Rentals. ServfcfSets UsApot1 To: Marty Wynne Deschutes County Tax Administrator From: Scott Pence - S and S Pence Investments -Dba Sunset Lodging Re: Deschutes County Transient Room Tax Date: 3/7/13 Marty, Per your request in the letter dated February 2t!d. 2013, I am following up with a . proposed payment plan on: 1. Taxes owing from August and September of2012 projected to June 30th, 2013 of $57,207.00 2. Taxes owing as a result of the findings in the recent audit related to cleaning and internet fees in the amount ofS73,231.88. Item 1: Payment Plan: March 2013 -June 2013 March $ 8,000.00 April $ 8,000.00 Mav $ 8.000.00 June $ 33,207.33 ImI! S 57.207.33 "'Please note -$10,000.00 was paid on February 14th, Item 2: As per your letter, I would like to request that I make a final proposal after the Board of County Commissioners has made a decision on the penalties which amount to $13,662.67. If they choose to follow your recommendation and waive the penalties due to the previous errors by the auditing firm, the outstanding amount will be $59,569.21 as opposed to $73,231.88. I Scenario 1 Payment Proposal -The commissioners agree with your recommendation and the amount is $59,569.21: Deschutes County-Aud'it July $ 5,000.00 August $ 5,000.00 September $ 5,000.00 October $ 500.00 November $ 500.00 December $ 2,500.00 January $ 1,000.00 February $ 1.000.00 March $ 2.500.00 April $ 1,000.00 May $ 2,500.00 June $ 33,069.21 TOTAL $ 59,569.21 Scenario 2 Payment Proposal-Given the dollar amount ($73,231.88) and per our discussion associated with the penalties, I would ask that we extend the time period out for 2 additional months, w~ch would include July and August of2014. Deschutes County -Audit July $ 5.000.00 August $ 5,000.00 September $ 1.000.00 October $ 500.00 November $ 500.00 December $ 1,000.00 January $ 1.000.00 February $ 1,000.00 March $ 1,000.00 April $ 1,000.00 May $ 1000.00 June $ 15,000.00 July $ 20,000.00 AUalIst $ 20.231.88 TOTAL $ 73.231.88 Thank you for your consideration and willingness to ask that the Board waive the penalties asso iated with the audit due to the past errors ofthe Auditing firm. Scot