HomeMy WebLinkAbout2013-08-14 Work Session Minutes
Minutes of Board of Commissioners’ Work Session Wednesday, August 14, 2013
Page 1 of 3
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, AUGUST 14, 2013
___________________________
Present were Commissioners Alan Unger and Anthony DeBone; Commissioner
Tammy Baney was out of the office. Also present were Tom Anderson, County
Administrator; Erik Kropp, Deputy County Administrator; and for a portion of
the meeting, Julie Spackman of Health Services; Nate LiaBraaten of EDCO,
and media representative Shelby King of The Bulletin.
Chair Unger opened the meeting at 1:30 p.m.
___________________________
1. Consideration of Business Loan Fund Request through EDCO.
Nate LiaBraaten of Economic Development for Central Oregon came before the
Board with an application from Paladin Data Corporation. He said that most of
the company’s employees are pilots and have use of planes owned by th e
company. They could work independently off-site, but seem to prefer working
together as a team. This business, which has to do with POS (point of sale)
software and hardware, has been steadily growing. The average salary is
around $44,000, which is above the County’s family wage average amount.
They are able to make software changes more quickly than competitors, about
every sixty days, in this highly regulated environment. Customers typically are
pharmacies and hardware stores.
Bruce Barrett of EDCO helped draft this loan request. The company has been
able to innovate and continues to grow even in slow economic times. They
know the funds are tied to job creation and retention in Central Oregon.
DEBONE: Move approval of the business loan fund request in the amount of
$32,000 for sixteen employees.
UNGER: Second.
VOTE: DEBONE: Yes.
UNGER: Chair votes yes.
___________________________
Minutes of Board of Commissioners’ Work Session Wednesday, August 14, 2013
Page 2 of 3
Mr. Anderson asked what happens if there are two companies with similar
business plans and both want to expand; one has reserves that enable this and
another does not. He wanted to know how EDCO decides between the two.
Mr. LiaBraaten stated that he worked for a lender in the past, and a common
phrase is that ‘banks don’t loan money when you need it’. Not all companies
with reserves want to use their reserves for expansion purposes, and there are a
lot of variables to take into consideration.
Mr. Anderson noted that the fund is being drawn down quickly and it may get
to the point eventually when they need to look more closely as to which
companies need to be considered and which should not. Ms. Ure indicated that
about $91,000 remains in the fund. The cash balance is a bit different now, and
Alchemy (GT Solutions) still owes money, but Mr. LiaBraaten will follow up
on this situation.
Mr. LiaBraaten stated that GeoSpatial Company has not created the new jobs
they were supposed to have by this time, but will know soon what their short-
term contracts might be. They have until the end of September to add two
positions.
Chair Unger wants to see businesses successful and add more family wage jobs.
If more flexibility is needed, he supports that. Mr. Kropp said that if the terms
of a contract are not fulfilled, the Board would have to approve any
modifications.
2. Consideration of Behavioral Health Services Grants for Suicide Prevention
and an Alcohol Abuse Program.
Julie Spackman discussed the Alcohol Abuse Program Summit grant
application, which would involve policymakers from agencies of all kinds.
DEBONE Move approval of the grant applications for the Alcohol Abuse
Program Summit and Suicide Prevention Capacity Building
Program.
UNGER: Second.
VOTE: DEBONE: Yes.
UNGER: Chair votes yes.
3. Other Items.
Mr. Anderson brought up the Youth Development Council update and
requested letter. The Board is not available on the dates when the Council
members wish to have a meeting here, except Commissioner DeB one during
part of one of the days. This group is part of the Early Learning Council's
overall plan for the future. The Director of the Youth Development Council
wants feedback from local governments and agencies.
A letter has been drafted for Board review and consideration at the next work
seSSIOn.
Mr. Kropp said that on August 28, representatives of Rockford, Illinois
government agencies will be coming to Bend to talk with the County about the
Deschutes Onsite Clinic and to tour the facility. The meeting will include
Rhonda Connor of Personnel, Mr. Kropp, and perhaps a Commissioner could
participate.
Mr. Anderson noted that some members of the Weed Advisory Board feel the
County is not supportive enough of weed control efforts. A few may show up
at the La Pine meeting on Friday to voice their opinions.
Being nofurther discussion, the meeting adjourned at 2:35 p.m.
DATED this Iq~ Dayof ~ 2013 for the
Deschutes County Board of Commissionlrs:
Alan Unger, Chair
Tammy Baney, Vice Chair
ATTEST:
Anthony DeBone, Commissioner ~~
Recording Secretary
Minutes of Board of Commissioners' Work Session Wednesday, August 14,2013
Page 3 of3
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
WORK SESSION AGENDA
DESCHUTES COUNTY BOARD OF COMMISSIONERS
1:30 P.M., WEDNESDAY, AUGUST 14,2013
1. Consideration of Business Loan Fund Request -EDCO -Judith Ure
2. Consideration of Behavioral Health Services Grants for Suicide Prevention and
an Alcohol Abuse Program -Jessica Jacks & Others, Behavioral Health
3. 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), real
property negotiations; ORS 192.660(2)(h), litigation; ORS I 92.660(2)(d), labor negotiations; or ORS 192.660(2) (b), personnel issues.
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. Ifyou have questions regarding a meeting, please call 388-6572.
Deschutes COWlty meeting locations are wheelchair accessible.
Deschutes COWlty provides reasonable accommodations for persons with disabilities.
For deaf, hearing impaired or speech disabled, dial 7·1·1 to access the state transfer relay service for 1TY.
Please call (541) 388-6571 regarding alternative formats or for further information.
To: Deschutes County Board of Commissioners
From: Judith Ure, Department of Administrative Services
Date: August 7,2013
Subject: Economic Development Loan Request
Attached is a briefing paper describing an economic development loan request scheduled for
discussion during the Board's August 14, 2013 work session. The request has been reviewed by
Economic Development for Central Oregon (EDCO) and evaluated by EDCO's Due Diligence
Committee. The resulting recommendation is as follows:
• Paladin Data Corporation, Inc.: $32,000/16 new employees
Representatives from EDCO will be attending the August 14 meeting to provide additional
information and to answer any questions about the loan request that Board members may have.
The Deschutes County Economic Development Fund currently has $91,667 available in the
fiscal year 2013-14 budget appropriation to fund loan requests. The recently approved request
by LMH Industries for an economic development loan in the amount of $40,000 has been
declined by the company due to changes in business practices that may reduce the projected new
hire counts. There are no other loan payments outstanding at this time.
Please contact me if you have any questions concerning the Economic Development Fund or
Economic Development Loan Program in advance of the August 14 meeting.
BRIEFING PAPER FOR Paladin Data Corporation, Inc.
Request for Deschutes County Forgivable Loan
August 7, 2013
Company Request: $32,000
EDCO Recommendation: $32,000
Proposed Job Creation within 24 months of April 16, 2013: 16 new employees
Average Pay for New Employees: $43,940
Industry: Point-of-Sale Software
Website: www.PaladinPOS.com
Company Background:
Paladin Data Corporation was founded in Bend in 1985 by Dan Nesmith and his wife to provide
point-of-sale (POS) software and hardware. A majority of their customers have been in retail
hardware and pharmacy, but their POS systems are functional in other environments. Mike
Williamson was brought on in 2007 as general manager with extensive experience in retail and
operations management. Dan and Mike confirmed that they have a succession plan in place with
experience management at all levels that can provide ongoing direction for the company. The
company has business plans in place for the next five years that are based on industry growth
projections and actual company performance. They shared data showing a sustainable 14% annual
growth rate with an actual annual growth rate of 30% in 2012. They attribute growth to:
• Company's ability to respond to customer needs and changes in regulations. They produce
software upgrades about every six weeks and are sensitive to changes in tax laws at the state
and federal levels. TIley have banking relationships that provide notice of changes in banking
laws and trends;
• Recent changes in market focus of their major competitors;
• Recent emphasis on a customer relationship marketing strategy;
• Their "subscription" revenue model allows for low accounts receivable and allows their cost
ofPOS system maintenance to exceed industry standards.
In terms of financials, the company has a respectable position. The balance sheet shows a good asset
to liability ratio. Their just-in-time inventory model allows for minimum current and obsolete
inventory. They have long term debt that is attributed to the cost of development but with recent
growth, they have been able to make significant payments in excess of requirements to retire that
debt. The owner's equity balance is evidence of long-term profitability. The income statement shows
a strong net income. It has been a management decision to operate with a lower working capital
balance in favor of paying off long term debt.
EDCO Recommendation:
The Bend DCFL Due Diligence Committee completed its vetting process on Thursday, June 27,
2013 when Eric Strobel, HR Specialist; Bruce Barrett, Business Consultant; and Nate LiaBraaten,
EDCO Business Development Manager met with Dan Nesmith, Paladin Founder; and Mike
Williamson, General Manager. Bill Kuhn, Commercial Banker, was unable to make the meeting, but
provided his input prior. The committee supports Paladin Data Corporation's request for funds in
the amount of $32,000. The Due Diligence Committee believes their projections meet the DCFL
requirements. They are an established Bend company that plans to continue to grow their business
in Central Oregon. Their long-term employment record indicates a favorable work environment and
they have plans to add additional facilities and skilled, family wages jobs. In the event that they are
not able to execute their growth plans, they have the current cash flow to quickly pay back the fund.
EDCO is recommending Deschutes County award $32,000, or $2000 per job created, over 24
months and retained for an additional 12 months following the application date.
Conditions include:
• Company hires 16 full-time positions by April 16,2015 and maintains total employment of
43 local employees until April 16, 2016
• Providing quarterly employment updates and the ability to inspect complete financial
statements from award date through termination of the yet-to-be executed agreement with
Deschutes County.
Failure to meet the above provisions would result in partial or full repayment of the loan, with
interest.
Bonnie Baker
From: Tom Anderson
Sent: Monday, August 12, 2013 3:12 PM
To: Jessica Jacks
Cc: Thomas Kuhn; Julie Spackman; Bonnie Baker; Judith Ure
Subject: RE: grant approval
Thanks Jessica. Grant application requests actually require Board approval. We can do that at the Wednesday afternoon
work session this week if that works for you all. Can you or someone from Health attend to answer any questions the
Board might have?
Tom
Tom Anderson
Deschutes County Administrator
1300 NW Wall Street
Bend, OR. 97701
541/388-6565
toma@co.deschutes.or.us
From: Jessica Jacks
Sent: Monday, August 12, 2013 11:08 AM
To: Tom Anderson
Cc: Thomas Kuhn; Julie Spackman
Subject: grant approval
Hi Tom A. -the substance abuse prevention program is currently working with the community to write two
grants to the same funder. It is my understanding that this requires administrator approval or perhaps BoCC
approval. I have provided a summary of each grant proposal below. Neither proposal was included in the
County's budget and neither includes personnel. Please let me know if I need to do anything further.
Grant funder for both applications: St. Charles Health System, Community Health Benefit Grant, due August
16, funds expenditure by December 31,2013
Grant A: Suicide Prevention-Capacity Building phase I
Budget amount: $12,100
Employee contact: Jessica Jacks
Project description: The Suicide Prevention-Capacity Building phase 1 project proposes to increase the
number of behavioral health professionals with the ability to practice evidence based guidelines to assess and
treat persons at-risk for suicide. Survey results indicate that local treatment providers have confidence in
being able to identify someone at-risk for suicide but that the majority are not confident with their current
skills to be able to assess and provide on-going treatment and management for at-risk clients. In order to be
successful at reducing suicide attempts and deaths in our region we must ensure that there are available and
knowledgeable resources to refer people to. This proposal will bring credible professional continuing
education training for behavioral health professionals in Central Oregon and the rural region to be able to
assess and treat clients at-risk for suicide.
Project partners and their roles:
1
1. Deschutes County Health Services (Advisory Council member; coordination of Advisory Council and
suicide prevention training opportunities (ASIST and QPR); expertise in crisis management, expertise in
population based health; behavioral health professional recruitment to training; primary care
assessment coordination; project evaluation coordination; CHB grant fiscal agent)
2. OSU-Cascades (Advisory Council member/chair; counseling student recruitment to training; possible
training location host; expertise in suicide prevention; access to research professionals)
3. St. Charles Health System (Advisory Council members; CME coordination; behavioral health
professional recruitment to training; possible training location host; expertise in behavioral health;
primary care assessment recruitment)
4. Deschutes County Medical Examiner (Advisory Council member; access to data)
5. PacificSource (behavioral health professional recruitment to training; primary care assessment
recruitment)
6. Bend-La Pine School District (behavioral health professional recruitment to training; primary care
assessment recruitment)
7. Redmond School District (behavioral health professional recruitment to training; primary care
assessment recruitment)
8. Sisters School District (behavioral health professional recruitment to training; primary care assessment
recruitment)
9. Private citizens (Advisory Council member)
10. Professional citizens (Advisory Council member; expertise in behavioral health; expertise in suicide
prevention/intervention; trainers for QPR and ASIST)
11. Cascade East AHEC (rural behavioral health care professional recruitment to training)
Grant B: Alcohol Policy Summit
Budget amount: $TBD (5, 000-10,000)
DCHS employee contact: Julie Spackman
Project description: Population health outcomes are greatly influenced by the environments in which the
population works, lives and plays. This proposal is designed to impact Deschutes County's alcohol
environments by training our local policy makers to understand the connections between public policy and
population health behaviors and outcomes. There are many different types of existing public policy
surrounding alcohol, from traffic safety policies to public alcohol consumption policies, to policies regarding
furnishing alcohol to minors. By training our public officials about how policy impacts behavior, the Coalition
aims to empower these partners to help prevent underage and binge drinking through effective policy design,
awareness and enforcement. Negative health consequences as a result of underage and binge drinking occur
across the life-span, impacting both alcohol abusers and their loved ones. Community leaders can foster the
legal and safe use of alcohol by strategically designing and coordinating public policy, policy awareness and
enforcement of policies. For the purposes of this project local policy makers include the following for
Deschutes County: city council members, city managers, county commissioners and state representatives.
Project partners and their roles:
• Shared Future Coalition (sets project direction, engages local policy makers, maintains coalition related
activities)
Coalition membership includes:
o Alcohol & Drug Evaluation Specialist (Scott McGuire)
o Bend Police Dept. (Ofc. Amy Ward)
2
o Celebrate Recovery (Norm Schultz -Coalition Vice Chair Person)
o COCC (Paul Wheeler -Coalition Chair Person)
o Community Member (Kori Kuaana)
o Deschutes County (Julie Spackman, Nick Stevenson, Jessica Jacks, David Visiko)
o DC District Attorney's Office (Jason Kropf)
o City of Bend Transportation Dept. (Robin lewis)
o DC Sheriffs Office (Cpt. Shane Nelson)
o lay It Out Events (lee Perry)
o Meth Action Coalition (Barb Stoefen)
o OlCC (larry Brown)
o State Parks and Recreation (Susan Bethers)
o Redmond Police Dept. (Chief Tarbet)
o The loft & Cascade Youth & Family Center (Mel Parker)
o US Forest Service (Sean Ferrell)
o Oregon Department of Transportation (Debbie Miller)
o Cascade Security & Investigations (Sue Meyer)
o 501 Drive (Pamela Trow-Johnson)
• Deschutes County Health Services (fiscal agent, maintains staff for coalition collaboration)
• Community Anti-Drug Coalitions of America (CADCA) (provides expert in alcohol policy)
Thank you!
Jessica Jacks, MPH, CPS
Prevention Coordinator
Deschutes County Health Services
1130 NW Harriman, Suite A
PO Box 6005
Bend, Oregon 97708-6005
(541) 330-4632
jessica.iacks@deschutes.org
Our Mission: To Promote and Protect the Health and Safety of Our Community
To request this information in an alternate format, please call (541) 617-4747 or send email to
ken.harms@deschutes.org.
3