HomeMy WebLinkAbout2013-09-04 Work Session MinutesDeschutes 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
WEDNESDA Y, SEPTEMBER 4, 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 ofthe meeting, David Givans, Internal
Auditor; Judith Ure, Administration; Chris Doty, Road Department; Scott
Johnson, Health Services; Timm Schimke, Solid Waste; Wayne Lowry, Finance; Ed
Keith, Forester; and media representative Shelby King ofthe Bulletin.
Chair Unger opened the meeting at 1:30 p.m.
1. Consideration of Approval of a Health Department Grant Application.
Scott Johnson said there are seven school based health centers, and the County
provides some funding for six of them. They are doing intensive planning and
are working from policy directives from the Board and the Budget Committee.
They look to diversify funding and determine sustainability.
The Central Oregon Health Council Policy is also having an impact -public
health versus private coverage.
They just received an additional $60,000 for the SBHC from the past
legislature. They are also looking at Medicaid expansion at perhaps 11,000 to
14,000 additional clients, with the results to be felt starting in January. They
have about 30,000 members now. SBHC will be a piece of this; it also services
adults in addition to children, in conjunction with Mosaic as a medical sponsor.
Other valuable aspects are adolescent and well child visits, with which the
SBHC might be able to assist.
Minutes of Board of Commissioners' Work Session Wednesday, September 4,2013
Page 1 of7
Minutes of Board of Commissioners’ Work Session Wednesday, September 4, 2013
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The Oregon Health Authority has issued FRP’s for the SBHC as they have in
the past. Staff is working carefully to evaluate the need and sustainability. The
Bend-La Pine School District wants to develop this program. Applying for the
grant and exploring the possibilities does not mean they have to open a center.
Erik Kropp asked about a business plan. Mr. Johnson said they have talked
with all the larger medical providers, and will meet in a few weeks to determine
which centers have a medical sponsor and, if not, who will step up. The
financials have to be different from those in the past.
Commissioner Baney said that partnerships are critical and billing has been a
problem previously. The County tries to do the right thing and the partners may
be supportive, but are not always that committed. If a SBHC has to be closed,
the County will get the negative press, if the partners don’t hold up their end.
She is not opposed to applying but expects the general fund transfer to be
reduced, since this is not a core County function. Other entities can bill for
services when the County is not able.
DEBONE: Move approval of the grant application.
BANEY: Second.
VOTE: DEBONE: Yes.
BANEY: Yes.
UNGER: Chair votes yes.
2. Discussion of the Solid Waste Fund and the Use of PILT Funds.
Wayne Lowry gave an overview of the process, which affects Solid Waste,
Road, Community Development, the Jail and the general fund. Regarding the
Solid Waste loan repayment strategy, they need to determine the capacity to
deal with this debt. (He referred to a memo, attached, detailing the discussion
points.)
Chair Unger stated that there is often an excess of property tax revenue, and he
wondered what was done with it in the past.
Minutes of Board of Commissioners’ Work Session Wednesday, September 4, 2013
Page 3 of 7
Also, with CDD making more money, the question was asked whether they
need additional employees to handle the workload. Tom Anderson said that
typically fees funds go in the capital projects funds. Commissioner DeBone
noted that this is a budget topic. Mr. Lowry said that they would need to go
through the normal process for the next year or two.
About $500,000 in beginning working capital could be appropriated for this. It
would be part of the normal appropriations done throughout the year. The
focus right now is just on the Solid Waste loan. PILT (payment in lieu of taxes)
will be discussed separately.
Chair Unger said that the plan was to have these funds come from the sale of
land, but that is not happening at this point. Mr. Lowry stated that it was one of
the original options, a source for revenue. Demand and prices might still be too
depressed to pursue this option.
Mr. Anderson stated that the debt to Solid Waste seems to have been a dark
cloud over all, and he considers it a priority to come up with a plan to get it paid
back quickly. This is better being off the books so it does not become a factor
for other projects. There is a three-year plan to make this happens. If the Board
feels it should take longer, they will adjust accordingly.
Mr. Kropp stated that the sale of land is limited, and they cannot use proceeds
from the sale of industrial zoned land for this purpose. Commissioner Baney
said that the land sale fund was a backup if voters did not support certain things
for the Sheriff and Jail. They have done a lot of exchanges with other entities
that do not bring in cash. County properties are limited and some should be
held for the future.
She does not know if three years is feasible for repayment. Chair Unger likes
the idea of retiring the loan as soon as possible, and this is a good start. The
County needs to manage its lands wisely. Mr. Anderson said this is a
conceptual plan and the County is not obligated for year s two or three without
further review.
___________________________
In regard to PILT and Solid Waste payments to the Road fund, Mr. Lowry said
there was an additional influx of PIL T funds. There is a nexus between the
Rural Schools fund and PILT. This also benefits forestry funding and noxious
weed control. The original amount is still in the general fund. The future of
PILT is anyone's guess, since it is subject to the political process.
The Board was supportive of the proposal.
Mr. Lowry stated that the increase in tipping fees a few years ago was to help
reimburse some road heavy traffic expenses and not to have roads go from
pavement to gravel. He said that Solid Waste needs additional funding for
capital projects. He referred to some potential paths to get there.
Mr. Anderson stated that the higher PIL T amount could continue, but there are
no guarantees. He wants them to be prudent and not tum the payment back to
Solid Waste until they have more history on this. Also, Solid Waste volume is
increasing, resulting in additional revenue.
Chair Unger does not want to make any radical changes at this time until more
is known, to make sure Solid Waste and Road funding have stabilized. He does
not want to see them have to go out for a rate increase. As a rule, the general
fund is not used to supplement Road needs. Mr. Lowry said the Board probably
does not want to consider this. They could look at the idea further should they
get to the point where they need to evaluate tipping fees.
Commissioner Baney stated that the diverted funding was meant to be
temporary. Chris Doty said that PILT started years ago and it is likely to be
authorized a few more times; then possibly phased out as other types of funding
have been. Chair Unger said that Rural Schools was primarily to benefit the
northwest, while PIL T is national and probably more solid.
Timm Schimke said he does not have a problem keeping things the same for
now. Solid Waste went from low tech to high tech, and the Commissioners
then wanted a clear line as to what tipping fees should fund. This is why Solid
Waste is separate from Road. He and Mr. Lowry looked at a five-year plan.
There is a 4% increase in flow but no one knows if this will continue. They
will have to look at a tipping fee increase at some point.
Minutes of Board of Commissioners' Work Session Wednesday, September 4,2013
Page 4 of7
Minutes of Board of Commissioners’ Work Session Wednesday, September 4, 2013
Page 5 of 7
He asked how the heavy road traffic computations came about. He is
concerned that the cities will want more funding for the same reason.
Commissioner Baney stated that road infrastructure was an important factor.
She does not recall any findings in this regard and thinks they were looking at
the system as a whole. Mr. Doty feels this is a primary reason for the increase.
At this time, utilities don’t have to pay franchise fees to the County.
Commissioner Baney said they could do this with broadband but have not
pursued it. Chair Unger said there are few choices as to from where this
funding could come.
3. Waste-to-Energy Program Update.
Mr. Schimke provided details on a proposed contract with Waste to Energy
Group. (A copy of the summary is attached.)
The group has 18 months to get the project up and running. They also hope to
work towards ways to handle the demolition landfill and other unlined portions
of the landfill, but this is some time out. The focus is the lined areas of Knott
Landfill. The vendor will look for the best possible market price for resulting
product.
Commissioner Baney voiced concern about the $100,000 bond not being
enough. Mr. Schimke said that if they disappeared, for the most part the
equipment would be scrap metal. All activity happens at the landfill. His
biggest concern is the liquid product on site, which is why it was restricted to
20,000 gallons. This product could also be sold. He feels the bond is adequate
but it can be increased in the future if the Board desires.
Eventually the landfill will need to use all space and they will deal with the
provider as needed then. This project is really neutral from his perspective,
although noise and light pollution might be a problem. He gave an overview of
various possible scenarios and how they would be handled. He has worked hard
towards good relationships with the neighbors and wants to keep it that way.
Commissioner DeBone asked if there is a concern regarding water. Mr.
Schimke said they will use Avion water and may choose to put in a well. Most
water will come from the waste. The County is not allowed to take in liquid
waste at this time, but may want to pursue this, such as liquids from breweries.
Minutes of Board of Commissioners’ Work Session Wednesday, September 4, 2013
Page 6 of 7
Commissioner Baney wants to hear about any concerns that County Counsel
might have with the contract, especially in regard to bonding and risk.
Mr. Schimke listed the public outreach that has occurred thus far. There will be
a DEQ permitting process and a contractual process, along with the contract as
presented to the Board for consideration of approval. Chair Unger said they can
always choose to hold a hearing if warranted. Commissioner Baney wants to be
sure the School District and close neighbors are kept informed.
4. Other Items.
Judith Ure said the League of Women Voters has asked for $150 funding for a
new version of the directory of locally elected officials.
BANEY: Move approval.
DEBONE: Second.
VOTE: BANEY: Yes.
DEBONE: Yes.
UNGER: Chair votes yes.
___________________________
Susan Ross said the City of Redmond and ODOT have come to agreement
regarding SB 1544 industrial land. There will be a zone change, and a presentation
is to be made soon.
___________________________
The Board then went into Executive Session, under ORS 192.660(2)(h), pending or
threatened litigation; and ORS 192.660(2)(e), real property negotiations.
Being no further discussion, the meeting adjourned at 3:25 p.m.
2013 for the DATED this / 6~ Day of f!!tt-~
Deschutes County Board of Commission;;;'
Alan Unger, Chair
Tammy Baney, Vice Chair
ATTEST:
Anthony DeBone, Commissioner ~~
Recording Secretary
Minutes of Board of Commissioners' Work Session Wednesday, September 4,2013
Page 7 of7
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, SEPTEMBER 4, 2013
1. Consideration of Approval of a Health Department Grant Application -Scott
Johnson
2. Discussion of the Use of PILT Funds -Wayne Lowry
3. Waste-to-Energy Program Update -Timm Schimke
4. Other Items
Executive Session, under ORS 192.660(2)(h), pending or threatened litigation
Tom Anderson, Chris Doty
PLEASE NOTE: At any time during this meeting, an executive session could be called to address issues relating to ORS 192.660(2) (e), real
property negotiations; ORS 192.660(2) (h), litigation; ORS 192.660(2)(d), labor negotiations; or ORS 192.660(2) (b), personnel issues.
Meeting dates, times and discussion items are subject to change. All meetings are conducted in the Board ofCommissioners' meeting rooms at
1300 NW Wall St., Bend, unless otherwise indicated. !fyou have questions regarding a meeting, please call 388-6572.
Deschutes County meeting locations are wheelchair accessible.
Deschutes County provides reasonable accommodations for persons with disabilities.
For deaf, hearing impaired or speech disabled. dial 7-1-1 to access the state transfer relay service for TrY.
Please call (541) 388-6571 regarding alternative formats or for further information.
DESCHUTES COUNTY
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ME~10RANDU~1
Date: September 4,2013
To: Board of County Commissioners
Tom Anderson, County Administrator
From: Wayne Lowry, Finance Director \~".r'
Re: PILT, Solid Waste Loan Repayment and payments from Solid Waste to the
Road fund.
These three issues were discussed by the Board at the work session on July 29,
2013. The purpose of this agenda item is to discuss proposed actions to resolve
these issues.
Attached you will find an analysis of the PIL T issue and the solid waste payments to
the road fund. You will also find a proposed plan to repay the solid waste loan from
general fund resources over the next three years.
At the end of our discussion on these issues, we would like the Board to take action
to resolve these issues so that staff can move forward to implement the Board's
direction.
Solid Waste Loan Repayment
September 4, 2013
Work Session Discussion
Loan History
The loan due to the solid waste landfill closure reserve fund 611 is due from two sources. As of June 30,
2013, the amounts due are $616,039 from the Humane Society, fund 129 and $3,249,366 from the jail
expansion capital project fund 456 for a total of $3,865,405. These loans were made over a five year
period between 2007/08 and 2011/12. Loan repayments from the Humane Society fund have occurred
each year beginning in 2009/10 and amount to over $870,000. No loan repayments have been made
from the jail expansion capital project fund.
Repayment Strategy
The Board gave direction to propose a plan for the repayment of the loan from the Jail expansion capital
project fund. It appears there is agreement that the general fund is responsible for the repayment of
this loan. The mechanics of repayment will entail the transfer of resources from the general fund to the
jail expansion capital project fund. The jail expansion capital project fund will then make payments to
the solid waste closure reserve fund reducing the liability in the capital project fund as payments are
made. A reasonable repayment schedule over the next three years can be born by the General Fund
without reducing its beginning working capital below the level estimated in the 2013/14 adopted
budget.
2013/14 Payment $965,000 -The general fund could have the capacity to transfer this amount in the
current year from the following two sources:
A} General Fund Beginning Working Capital $500,000 -The general fund beginning working
capital for 2013/14 is greater than anticipated in the adopted budget by $870,000. This
unexpected resource could be used to pay down the loan. We are proposing to use
$500,000 of this resource for this purpose in 2013/14.
B} Transfer to COD $465,000 -The general fund is budgeted to transfer an additional $465,000
to COD in 2013/14 for its operations. It appears that the COD beginning working capital for
2013/14 will be $850,000 higher than anticipated in the adopted budget. Due to the
significantly higher than anticipated beginning working capital, it appears this transfer will
not be necessary. Instead, the general fund could transfer the $465,000 to the jail
expansion capital project fund for repayment of the solid waste loan.
2014/15 and 2015/16 Payments of $1,165,000 -The genera I fund could make additional payments in
each of the next two years from the following sources:
A) Transfer to LED #2 $400,000 -The general fund has made transfers to LED#2 over the past
5 years averaging $427,000. These transfers made up the difference between the
commitment of $2,650,000 per year and the actual amount of room tax collected for this
purpose. The general fund share of this commitment is declining as room tax collections
continue to increase due to the improving economy. The general fund could commit to
transfer $400,000 per year for the next two years to repay the solid waste loan as the
necessity to fulfill the lED#2 commitment is fully born by the room tax.
B) Transfer to COD Fund $500,000 -As mentioned above, the general fund supported the COD
fund over the past several years totaling $3,174,511. COD's own revenues in 2012/13 came
within $82,108 of COD expenses for the year. It is likely that as the economy improves, COD
revenues will again carry the fund without continued subsidy from the general fund. The
general fund could commit $500,000 per year to the repayment of the solid waste loan with
these resources that will not be needed for COD in the future beginning in 2014/15.
C) General Fund Beginning Working Capital $265,000 -General fund beginning net working
capital is normally greater than anticipated each year due to stronger property tax revenues
than anticipated. The first $265,000 of this potential resource could be committed to repay
the solid waste loan.
Solid Waste Reserves
Repayment of the solid waste loan from the general fund is possible over the next three years as shown
above. The solid waste operation has shown the need to fund several sizable capital projects over the
next five years. The table below shows the reserves available each year with the proposed loan
repayment and the projected capital needs for Solid Waste. It should also be noted that a $3,000,000
project is projected for the sixth year and is not shown on the table below.
2013/14 2014/15 2015/16 2016/17 2017/18 Total
Solid Waste Reserves 2,122,257 2,924,346 2,469,253 3,511,353 3,781,537 2,122,257
loan Repayments 965,000 1,165,000 1,165,000 3,295,000
Reserve Deposits 545,000 450,000 450,000 450,000 450,000 2,345,000
Solid Waste Projects -707,911 -2,070,096 -572,900 -179,816 -1,187,000 -4,717,723
Solid Waste Remaining
Reserves
2,924,346 2,469,253 3,511,353 3,781,537 3,044,537 3,044,534
Requested Action: The Administration requests that the Board of County Commissioners approve this
plan for repayment ofthe solid waste loan from resources in the general fund over the next three years.
Actual amounts repaid each year may vary depending on available funds and will be subject to budget
committee and Board approval through the budget process.
PILT and Solid Waste Payments to Roads
September 4, 2013
Work Session Discussion
Two outstanding issues from the July 29, 2013 work session included how to allocate the greater than
anticipated PILT revenue for 2013/14 and whether or not the payments from solid waste to the road
fund should continue. Both of these issues are discussed below along with Administrations
recommendations.
PILT
There seemed to be consensus among Board members that the excess PILT revenue realized in 2013/14,
estimated by Chris Doty in his most recent memo at $1,252,194, should be directed to the road fund
$1,064,365 (85%) and to the natural resources fund $187,829 (15%) to replace the expected loss of
Secure Rural Schools revenues. This leaves a piece ofthe annual PILT payment that approximates the
historical level of funding included in the general fund. Excess PILT funds would then be used for major
maintenance and capital projects in the road fund and forestry and noxious weed programs in the
natural resources fund. No budget adjustment would be necessary unless the receiving funds needed to
appropriate the additional resources for projects in 2013/14.
Solid Waste payments to Road Fund
History and Background
Solid Waste tip fees were increased by $5.00 per ton in 2007/08 and all of the incremental revenues
were committed to the road fund. The amount paid from solid waste to the road fund is determined by
multiplying the previous calendar year's tons of municipal waste by the $5.00 per ton rate. The total is
then included in the budget for the transfer the following fiscal year. Solid Waste revenues fell during
the recession and the commitment to the road fund was reduced to $2.50 per ton through the budget
committee process for 2010/11. A history of the solid waste operating fund showing revenues, transfers
to the road fund and EFB are shown below:
2009/10 2010/11 2011/12 2012/13 2013/14
Solid Waste
Revenue
6,510,034 6,494,736 6,517,877 6,806,370 6,754,776
Transfer to
Road Fund
708,567 291,740 285,773 276,272 282,148
EFB Actual 318,001 1,141,691 807,470 1,224,767
It appears that even with the current payment at $2.50 per ton from solid waste to the road fund, solid
waste has been able to increase its beginning net working capital by an estimated $400,000 beyond the
amount budgeted for 2013/14. This provides the solid waste fund with its largest beginning net working
capital since 2008/09.
The decision to transfer solid waste resources to the road fund through the tip fee increase had a
rationale when it was first instituted that solid waste hauling throughout the County has an impact on
County roads and therefore some of the revenue generated from solid waste activities should be used
to address those impacts. This strategy also allowed the road department to replace declining forest
revenues used for road maintenance and capital projects. Both of these reasons still exist and have not
changed. Because the payments to the road fund are unrelated to the need for the solid waste
department to fund its capital projects over the next several years, we suggest that the payment
continue as budgeted for 2013/14. If a decision to eliminate the transfer to the road fund is made in the
budget process for next year, perhaps the amounts should be dedicated to the landfill closure reserve to
ensure that sufficient funds are available as closure costs increase over time and the life of the landfill
draws to a close.
Requested Action: The Administration requests that the Board of Commissioners direct that the excess
portion of the PilT payment for 2013/14 in the amount of $1,252,194 be directed to the road fund and
the natural resources fund as set forth above. We also request that no change be made for this year in
the payment from solid waste to the road fund so that this issue can be studied further prior to the
214/15 budget process.
Term:
Compensation:
Default:
Termination:
Operation:
Proposed Contract Summary
with
Waste to Energy Group
15 years with two 5 year extensions if mutually agreed.
Agreement only applies to lined areas of Knott landfill
4% of gross revenues or $20,000 whichever is greater, paid monthly
Includes revenues from sale of products and environmental attributes
Contractor must have commercially viable operation within 18 months
Except for scheduled maintenance. Contractor is in default if unable to operate for 7
consecutive days. 30 days are allowed to cure default
Uncured default is a breach of contract. County has the right to terminate.
County has the right to extend cure periods
County has the right to suspend operation at any time should operation pose a threat to
human health or the environment.
By mutual consent, parties may suspend or terminate if operation becomes
commercially unviable or initial testing indicates unviability. Documentation required.
Contractor will leave all infrastructure required for regulatory compliance in place.
Restricts liquid product storage to 20,000 gallons. Requires $100.000 bond.
Establishes contractor staff experience standards and requires criminal background
investigations
Contractor is responsible for all regulatory compliance for gas system and their
operation.
Agreement only applies to waste that is in place at the time of contract execution.
County retains the right to manage waste stream and divert any materials from the
landfill.
County will designate an area for Contractor operation. Parties agree that this area will
be relocated from time to time depending on landfill operational needs.
County provides services of our landfill engineering tech technician for limited number of
hours (1/4 FTE). Contractor provides compensation for extended hours.
Parties acknowledge Contractors operation is intended to be 2417 however Contractor
must use any and all noise and light mitigation technology and infrastructure to reduce
noise to County's satisfaction. In addition. only routine operation will be allowed beyond
normal operating hours. Any construction, repair or maintenance must be conducted
during specified times and days.
®
LEAGUE OF WOMEN VOTERS
OF DESCHUTES COUNTY
July 22, 2013
Susan Ross
Property and Facilities Director
1300 NWWall St., Suite 200
Bend, Or 97701
Re: Biennial Publication of League of Women Voters' Directory
The League of Women Voters of Deschutes County is in the process of updating our
directory of locally-elected officials -THEY REPRESENT YOU. This is a volunteer
project which the League does, every two years. after the general and special elections
are held.
The directories are available free to the general public through the library, and to
contributors, the media, etc. They are a well-received, handy resource. Enclosed is a
copy of our last publication.
We have had the honor of having you as a sponsor of this project over the past years.
We are again inviting you to participate along with other highly-recognized businesses
in our area which support the League's efforts to have informed voters.
We would appreciate your contribution of $150. 00 for the 2013-15 booklet.
Thank you for your continued support.
Susie Penhollow, Voter Service Chair
LEAGUE OF WOMEN VOTERS OF DESCHUTES COUNTY
60939 Billadeau Rd.
Bend, OR 97702
Phone: 382-2724 or mspenh@bendbroadband.com
Checks may be made to: League of Women Voters Education Fund,
60939 Billadeau Rd., Bend, OR 97702
Enc: "They Represent You" Booklet