HomeMy WebLinkAboutProperty-Facilities UpdateProperty & Facilities Department
Susan C. Ross, Director
May 2, 2011
14 NW Kearney Street, Bend, OR 97701-1960
(541 ) 388-6594 • Fax: (541 ) 317-3168
www.co.deschutes.or.us
TO: Dave Kanner, Administrator
FROM: Susan Ross, Property & Facilities Director
RE: STAFF REPORT FOR MAY 23 WORK SESSION
We have two items to discuss with the Board on May 23.
1. Redmond Rod & Gun Club has requested a 5 -year extension of their lease.
Their current lease expires June 2011. See attached letter with their justification
for this extension. Staff would not recommend a full 5 -year renewal. We would
recommend a maximum 3 -year renewal considering our efforts to develop this
property.
2. Attached is a letter from HGE, Inc., on behalf of the La Pine Water District. The
letter is requesting that the County forgive a $60,000 loan that was made to the
District in 1999. In 1999, the County acquired from a private developer the
water well site that is now the source of the community public water system. The
water district was just formed and had no financial resources, so the County
acquired the water site and rights on the district's behalf with the intent to transfer
it to the water district. The attached financial agreement called for repayment to
the County via a $200 hookup fee/SDC that would be assessed on each service.
That hookup fee was never implemented because it is believed there was later
an unwritten understanding that the County would treat this $60,000 as a credit
that we had with the water district and as our properties were serviced, we would
apply the hookup cost toward our credit. I spoke with Dennis Luke and Linda
Swearingen, who signed off on this agreement, and they both confirmed that they
felt this was the understanding. I would also agree this was the intent. I need
direction on whether or not we forgive this loan so that both entities can get this
off the books.
Quality Services Performed zvitlr Pride
P.O. Box 14
Redmond, Oregon 97756
April 15, 2011
Deschutes County
Board of County Commissioners
1300 NW Wall Street
Suite 200
Bend, OR 97701
Re: Lease with Deschutes County, dated March 22, 2006
2555 Hwy 126 East, Redmond, OR
Deschutes County Commissioners:
The above referenced lease, as amended, between Deschutes County (Lessor) and Redmond
Rod & Gun Club (lessee) is currently scheduled to terminate on June 1, 2011. I would like to
request that the termination date be changed to June 1, 2016.
Our officers and board members have been diligently working on finding a new home for the
Club. As of this date we have not found a suitable property. We will continue to keep the
Commissioners and Deschutes County Property Management informed on our progress and
project status.
We believe we will eventually be successful in our search. We also realize that our relocation
will require an unknown amount of money to secure grants necessary to help us with the move.
We are attempting to raise money but our progress is hampered due to the current economy.
Our membership remains below historic levels due to the uncertainty with the lease and
relocation. It is anticipated that a five year lease extension would be highly beneficial to our
relocation fund raising efforts.
I would like to thank you for your help and consideration and look forward to continuing our
close working relationship in the future.
Sincerely,
Gerald W. Glave
President, RR&GC
HGE
1I NC1
ARCHITECTS
ENGINEERS
SURVEYORS
PLANNERS
i1
375 PARK AVE
COOS BAY
OREGON
97420
11
541.269.1166
FAX 541.269.1833
CELL 541.404.3791
mored@hgel.com
I
Richard D. Nored, P.G.
Joseph A. Slack, A.I.A.
Russ Dodge, PLS
Stephen R. Cox
April 25, 2011
Deschutes County
14 N.W. Kearney Street
Bend, OR 97701
Attn: Susan Ross
Property & Facilities Director
Re: LaPine Water District
Well Site Purchase
Project No. 02.42
Dear Susan:
This letter is being provided on behalf of the LaPine Water District. hi 1999, .Deschutes
County purchased a well site from LaPine Water Company and Dean Rogers to be utilized
by the LaPine Water District as a source to supply the community. LaPine begin
construction of a new water system in 2002, and expanded the system to serve the
developing Wickiup Jct. in 2004. An agreement was reached between Deschutes County
and LaPine Water District in late 1999 to repay the original $ 60,000 loan. When the
original water system for LaPine was finished, there were monies remaining to reimburse
the County, but all parties believed it was more beneficial to extend service to Wickiup
Jct. and County lands in the New Neighborhood and in Wickup Jct. During this time
period, repayment of the County loan was discussed several times, and the District always
understood that the County commissioners did not anticipate repayment of the loan, and
in fact preferred expansion of the water system to serve the community and County lands
that would be greatly benefitted by continuing expansion of the water system.
District auditors have discussed the unresolved financing agreement in several past audits,
and the District would like to resolve the issue.
The LaPine Water District understood that repayment was not anticipated, and did not
charge hook-up fees for any of the original users in LaPine, or in the expansion into
Wickiup Jct. Payment of the originally agreed $ 200 per hook-up was not charged to any
of the original users in LaPine or Wickiup Jct. This policy was extended for new growth
in expansions on County lands and other developing property in their service area, as the
District did not anticipate any requirement for repayment of the original loan.
In addition to water service being provided to all original residents of LaPine and Wickiup
Jct., and the surrounding County lands on Drafter Road, the District did reimburse
Deschutes County and the LaPine Industrial Group for the full cost of system
improvements in the small lot Industrial Park, even though much of those costs should
have been developer expenses. Since the original construction, there have been no
connection fees to any of the growth developed on County lands, or in other expanding
areas of the District. Agreement has been made to continue this policy for the Biogreen
project which is planned for development on County lands. Expansion of the original
water system has been provided as follows:
Deschutes County Lands
Small Lot Industrial Park
Crescent Creek Subdivision
7 EDU
90 EDU
R.••a An 2 I 2:
LaPine Water District Well Site Purchase, Project No. 02.42
April 25, 2011
Page 2
Midstate Electric
Little Deschutes Lodge(Phase I)
Little Deschutes Lodge(Phase II)
Biogreen
TOTAL ON COUNTY LANDS
Total amount that could have been
$ 179,000.
11 EDU
26 EDU (Here they also reduced the
SCD charge to 50% to allow)
26 EDU (Plans are to also reduce
the SDC charge to 50%.
785 EDU
895 EDU's
collected on County lands, 895 EDU's at $ 200 =
In addition, there has been substantial growth in the service area that has benefitted the health and
welfare of Deschutes County, including the following:
New Elementary School
Huntington Meadows Subdivision
Wheeler Ranch Subdivision
Jack Pine Village Subdivision
Hinkle Park Subdivision
R & W Estates
Black Bear Meadows
Peaceful Pines
Habitat Homes in Wickiup Jct.
Wickiup Jct. Sports Pub
Church in Wickiup Jct.
TOTAL GROWTH IN LAPINE
AND WICKIUP JCT. ON NON
COUNTY LANDS
30 EDU
117 EDU
46 EDU
20 EDU
11 EDU
11 EDU
5 EDU
4 EDU
3 EDU
13 EDU
2 EDU
262 EDU's
Total amount that could have been collected on non -county ownership, 262 EDU's at
$ 200 = $ 52,400.
The LaPine Water District would appreciate resolution of the financing agreement, by County
Commissioner concurrence that Deschutes County has benefitted by an amount at least equal to the
original loan, and that no further repayment will be required. If you have any questions or concerns,
please contact me.
Very truly yours,
HGE INC., Architects, Engineers,
Surveyors &_Planner
Richard D. Nored, P.E.
President
c. LaPine Water District
HGE
um II
ARCHITECTS, ENGINEERS, SURVEYORS & PLANNERS
375 Park Avenue, Coos Bay, Oregon 97420
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t.z 11 nr, c fd!
�i, 1� t 1 t.E►b�
REVIEWED
LJL
LEGAL COUNSEL
TRANSFER AND FINANCING AGREEMENT
This Agreement dated O , 1999 between Deschutes County (TIN # 93-
6002292), a political subdivision of the State of Oregon (hereinafter referred to as "County"),
La Pine Water District (TIN # 91-1858903), a special district organized under the laws of
Oregon (hereinafter referred to as "District ").
County and District agree as follows:
1. Recitals
1.1. County owns certain property described in Exhibit A (hereinafter referred to as
"the well property") that it acquired for purposes related to the development of a community
water system for the La Pine area.
1.2. La Pine Water Company and Dean Rogers constructed or caused to be
constructed a well, well casing and wellhead (Start Card No. 59688) relating to the
production of groundwater for distribution (hereinafter referred to as "the works") on the well
property for the purpose of furnishing water to and development of a water system for the La
Pine area.
1.3. The La Pine Water Company and certain individuals associated therewith
(hereinafter referred to as "the Company") acquired certain other assets, including a
groundwater perrnit, county land use permit, land grants from the U.S. Forest Service and the
U.S. Bureau of Land Management for the purpose of furnishing domestic water to the La Pine
area.
1.4. Citizens in the La Pine area caused the District to be formed for the purpose of
supplying domestic water to the La Pine community.
1.5. The Company and the District determined that it was in the best interest of the La
Pine community that as between the two of them, the District should develop the water supply
system for the La Pine area and that the District should acquire the assets of the Company.
1.6. The County agreed in a Purchase and Sale Agreement dated August 11, 1999, to
purchase the assets from the Company in order to facilitate transfer of the assets to the
District.
1.7. County and District now wish to establish the terms for the transfer by the
County of the well property and the Company assets to the District.
Page 1 — TRANSFER AND FINANCING AGREEMENT
Exhibit 3
2. Agreement to Transfer.
2.1. County agrees to transfer to District all its interest in the well property "as is" and
to furnish a quitclaim deed, with a reversionary clause to the County in the event that the
property ceases to be used by the District for supply of water. There shall be no consideration
for such transfer.
2.2. County agrees to transfer to District all of the assets relating to the production,
supply and distribution of water from the well property for the La Pine community acquired or
to be acquired by the County under that certain Purchase and Sale Agreement dated August
11, 1999, including the groundwater permit; the well works; the BLM land grant; the county
land use permit; the supporting documentation and data and rights held by grantors to the
continued use of such documentation and data.
2.3. District agrees to accept the transfer of the assets identified in Paragraphs 2.1 and
2.2 above.
2.4. County agrees to cooperate with District and to take such action as is necessary
to have the Forest Service land grant, as amended, granted to .District.
2.5. County and District agree to cooperate in implementing this Agreement by
signing any documents required to effect the transfer of any of the assets covered by the
Purchase and Sate Agreement.
2.6. County agrees to exercise its rights under the Purchase and Sale Agreement, if
necessary, to complete any of the transfers contemplated under the Purchase and Sale
Agreement.
2.7. County shall pay for any filing fees or transfer fees associated with the transfer to
the District assets and/or approvals.
2.8. County shall transfer those assets to which it Inas title and that it has within its
possession within 30 days of the date this agreement is fully executed. The County shall take
steps necessary to transfer those assets to which it does not have title at the time this
agreement is executed within 30 days of the date it obtains title to such assets.
3. Consideration.
3.1. As consideration for County's transfer to the District of Company's assets and
the assignment of certain surviving contract rights under Paragraphs 4 and 5 herein, District
shall pay to the County the sum of sixty thousand dollars ($60,000), payable in accordance
with the terms set forth in Paragraph 3.3 herein.
Page 2 — TRANSFER AND FINANCING AGREEMENT
3.2. County shall not charge the District interest on any balance owed the County
under this Agreement.
3.3. District shalt pay the county as follows:
(a). Payment in Rill shall be made over a period not to exceed ten years from the date
the District begins to collect fees for hooking up and/or supplying water to individual property
owners. District shall notify County when it starts to collect such fees.
(b). District shall at a minimum make payments to the County against the amounts
due hereunder at a rate of $200 out of each hook-up fee or SDC charge collected on or after
November 1, 1999.
(c). District shall pay to County proceeds from any grant received by the District that
cover acquisition of the type of assets described in this Agreement.
(d). Payment may also occur out of any other combination of bond proceeds, service
hook-up fees and/or the usage fees collected from water account holders within the District.
(e). District shall provide County with a mutually agreeable payment plan by
December 1, 1999, which plan shall be reviewed on a yearly basis until such time as the
amount due hereunder is paid in full.
3.4. This agreement represents the financing of the purchase by the District from the
County or certain personal property and/or property appurtenant to or to become appurtenant
to the real property identified herein. District hereby provides the County a security interest in
the company assets being transferred From the County to the District, as listed in Paragraph
2.2 of this agreement and the contract rights listed in Paragraphs 4 and 5 herein. To the
extent allowed by law, the security interest granted hereunder in the water right permit shall
extend to any water right certificate granted to the District following perfection of the permit.
If the District does not pay the County in accordance with the terms of this agreernent, the
County may foreclose its security interest, as to all or any of the assets or contract rights
identified herein, in any manner available under existing iaw.
3.5. District agrees to sign such UCC financing statements or trust deeds as may be
required by the County. In addition, District agrees to notify the County if it enters into any
financing agreements whereby any or the assets and/or contract rights that are the subject of
this agreement are further encumbered.
4. Company's Representations and Warranties.
4.1. County warrants only that it has not encumbered the title it received on such
assets that it received from the Company.
Page 3 —TRANSFER AND FINANCING AGREEMENT
4.2. County hereby assigns to District whatever warranty rights it has against
Company under the Purchase and Sale Agreement.
4.3. County makes no representations nor warranties as to the quantity and/or quality
of the water that may be obtained under the permit and no representations as to the condition
of the well or the works, and the District takes the .well and the works "as is."
4.4. County snakes no representation as to whether the continuing validity of the
county land use permit, which may by its terms have expired.
5. Assignment of Surviving License Terms. County hereby assigns to District its
surviving rights under Paragraphs 6, 8, and 10 of that certain License Agreement between
County and La Pine Water District dated March 30, 1998.
6. Default. A default shall include a breach of any of the obligations set forth herein
as well as a breach of any of the terms of the license agreement incorporated herein.
7. Remedies. Upon an occurrence of default, the parties shall have whatever remedies
as are available to them at law.
8. Attorney Fees. If a suit, action or arbitration is instituted in connection with any
controversy arising out of this Agreement or to enforce any rights hereunder, no party shall be
entitled to an award of attorney fees against the other.
9. Governing Law. This Agreement shall be governed and construed in accordance
with the law of the State of Oregon.
10. Waiver. Failure of either party, or any assignee, at any time to require
performance of any provision of this Agreement shall not limit such party's right to enforce
such provisions, nor shall any waiver of any breach of any provision of this Agreement
constitute a waiver of any succeeding breach of such provision or a waiver of such provision
itself
11. Amendment. This Agreement may not be modified or amended except by the
written agreement of the parties. This Agreement may not be amended or modified orally.
12. Severability. If any term or any provision of the Agreement or the application
thereof to any person or circumstances shall to any extent by invalid or unenforceable, the
remainder of this Agreement shall be valid and enforceable to the Fullest extent permitted by
law.
13. Survival of Terms. The terms of this Agreement shall survive closing of the
transfer ofthe assets.
Page 4 — TRANSFER AND FINANCING AGREEMENT
14. Integration. This
the parties and supercedes all
IN WITNESS WEIE
the date first set forth above.
three-page Agreement contains the entire agreement between
prior and contemporaneous agreements between them.
REOF, the parties have executed this Agreement effective as of
COUNTY:
ATTEST:
Recording Secretary
DISTRICT:
DATED this )7/1 -4 -day of October, 1999.
BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY,GON
DA L. SWE
, Chair
T. N. D- ' 0 , Commissioner
IS R. LUKE, Commissioner
Dated this 9 day of f o v
, 1999.
BOARD OF LA PINE WATER DISTRICT
By:
BarbeAnn Nelson -D
Page 5 — TRANSFER AND FINANCING AGREEMENT
dson, Chair