BOARD OF COMMISSIONERSí
REGULAR MEETING
June 8, 2011
1:30 p.m.
Harris Hall Main Floor

APPROVED 6/22/2011

Commissioner Faye Stewart presided with Commissioners Jay Bozievich, Rob Handy, Sid Leiken and Pete Sorenson present.  County Administrator Liane Richardson, County Counsel Stephen Vorhes and Recording Secretary Melissa Zimmer were also present.

12.  LANE EVENTS CENTER

a.  UPDATE/Ice Rink.

Rick Reno, Fairgrounds, indicated that he reviewed the history of the Ice Rink.  He said it was built in the 70ís as a horse arena and in 1989 it was converted to the Ice Rink.  He noted in June 2010 they hired EIS Rinks as a consultant to prepare a report for them for the existing conditions and recommendations.  He noted in their recommendations they listed a number of safety issues.  He said they addressed as many of the issues as they could regarding the R22 Freon issue relative to their employees and an alarm system. He added through the fundraising efforts with the Ice Skating Foundation, Hockey Oregon and other entities, they addressed the hockey dasher issues to everyoneís satisfaction.  He added the other underlying issue relative to the perma frost and the caverns underneath has not been addressed.  He said they have another year of operation under their belt where they think at least they were able to address a little of the perma frost issues because they shut down for an extended amount of time, more so than in the past.   

Reno reiterated that this year the Board asked him to come up with a plan that would allow them to operate as an ice center in the facility for at least one more  year.  He indicated that Ken Evans(representing Hockey Oregon, the Ice Skating Foundation and other user groups)  and he came up with a draft lease agreement. He recommended that they follow the agreement and move forward.  He believed they can work for one more year as an Ice Rink.  He recalled that last year they were directed to operate at a full cost recovery.  He reported by June 30, 2011 he expects them to be at full cost recovery.  He noted that Stewart asked if full cost recovery included depreciation, and it did not.  He added this agreement also does not include depreciation, but it covers all direct expenses.  He said when they are doing something with the Ice Rink, under this agreement Hockey Oregon would reimburse them to the point where it guarantees them a net of $50,000.   He said he thinks after June 30, 2011 that number will be at zero, where they will not lose money based on the arrangements they worked under last year.

Stewart had concerns about the termination in that it doesnít appear the County could terminate  the lease.  He thought there should be a clause for unforeseen costs.  He couldnít tell if that happened.  He added that if Lane County doesnít have the money to replace it or fix it, then the lessee, the Hockey organization, could potentially have cause against the County.  He said if they canít repair something he didnít want the  County to be forced to do the repairs and then be subject to additional costs of the hockey season being shortened or lost revenue to the Hockey Association.  He noted under Section 4.7 and 4.8 they are talking about an outright sales of skates and supplies and the sale of the ice surfacing machine.  He said that meant they were able to buy it back for the same amount of money they paid the County.  He wanted to make sure the materials they buy back are in the similar condition.  He added under item 2.47 the County will be taking care of all under the ice resurfacing machines and taking care of all catastrophic repairs.  He said under that clause they are operating under more of a lease but they are outright selling the items to them.  He said they need to have a restructuring where either the County is going to lease the equipment and be liable to them for the catastrophic repairs or the County will sell it to them and the Hockey Association will be liable.  He said it is confusing.

Reno said they want to have the equipment returned in the condition they sold it. He noted page 4, 2.6, stated it would be returned ďin as good a condition as received, normal wear and tear accepted.Ē  He thought the language could be tightened up in a way that is mutually agreed upon.  With regard to the termination of the lease agreement in midterm, he indicated that if they had a catastrophe, they felt at the time that it would be covered on page 10, 7.4.  He said he spoke with Assistant County Counsel Andy Clark and Clark thought it should be tightened up.

Reno explained they are assessing a maintenance fee from the first date, wherein Hockey Oregon, LLC will deposit an amount of money in their account and as certain repairs present themselves, (if it is mutually agreed upon that the County feels they should try to make those repairs) they would debit the account to do it.  He stated they wanted to have as much control they can over the quality of work.

Stewart asked why they would have the sale of the ice resurfacing in the agreement. He asked why they needed item 4.8.

Reno said the sale of equipment and the repurchase at the end of the term was something they should do.

Clark didnít know why it would be beneficial to the County to sell the equipment and then buy it back.  He thought it was easier to lease the premises as well as various items they are leasing.

Stewart said that made sense to him.

Reno indicated that he would make that adjustment.

Handy asked about food and beverages on page 7.

Reno said for the majority of the events that would take place, the concession stand would be open and it would be through Big Green/Wild Duck, a catering company.  He said they would operate the concession stand.  He said they try to maintain as much control as they can whenever revenues are involved.  He said they donít want food events to be done without a mutually agreed upon scenario put together with operational and or financial issues.

Handy stated that unfortunately the County doesnít have general fund money to do this even if it is a good thing.

Clark said his intent is to draft language that permits the County to terminate the lease when it makes findings and reasonable discretion that there is not funding available to do required repairs.  He said they can finalize the lease.  He indicated that it doesnít need to come back to the Board because it will be under $100,000 in revenue and it is available for the County Administrator to execute.

Sorenson asked if a one term lease was better than two years.

Reno said the term begins on August 15, 2011 and ends April 30, 2012.  He said the direction from the Board was for one year only.  He added Evans stated it would be his preference that it would be for two years instead of one year.  Reno said the challenge is their consultant has told them they have safety issues.  He indicated that they have made minor adjustments in addressing some of the safety issues.  He added that they have been able to demonstrate that the two entities:  the County and Hockey Oregon have been able to work out a financial agreement and it has been acceptable to both parties.  He indicated that if they extend this to another year, it presents issues.  He thought it was to the best interest of the County for this to remain a one year lease.  He didnít think they had to wait an entire year to come back and say they want to extend it.

Bozievich recalled that one of the reasons they agreed to go another year with Hockey Oregon was that they waited too long to make any decision.  He asked what the permanent solution would be.  He was willing to let County Administration finish the agreement, as it was the direction of the Board to sign it for one more year.  He stated they have to let the hockey people know early enough that they were either going to discontinue the arena or they will do something in a more permanent fashion.  He wanted to see something back in September.  He thought they were going to start to discuss the long term aspects of the Ice Rink and the long term solutions.  He said they have to resolve the permanent structure and safety issue.

Reno recalled that with the concurrence of the Board a couple of years ago they hired a consultant to give them a report that included the existing conditions about the perma frost and the R22 Freon.  He added at that point the Board instructed him to figure out a way to stay open one more year.  He said they put together a couple of proposals and the proposal that was approved by the Board was not the one he recommended.  He said the Board gave the direction to be open again for another year and to figure out a way to do that financially.  He believed this contract represents that request.  He believed the answer was in the consultantís report.   He said there are those who disagree with the findings in the report, but he was not one of them.  He thought if they revisit the consultantís report, it will tell them what it would take it make it safe and viable as an Ice Rink by itself or as a multipurpose facility that could do other things and how much it would cost to do it.

Leiken didnít think they could go beyond one year.  He said the challenge is uncertainty.  He said they need to base it on a year to year issue.  He said with the issues concerning Secure Rural Schools and what is going to happen with the timber payments, they are forced to look at things on a year to year basis until they can determine where funding will come from.

Stewart was comfortable with a one year contract.  He said they will be starting a strategic plan after the Fair.  He didnít want to commit to anything longer than one  year so they are not locked into a situation where they canít act until further down the road.  He wanted to have a discussion about the entire facility in early September.

13.  COUNTY ADMINISTRATION

a.     Announcements.

Richardson stated that she has not proposed to the Board anything about an Assistant County Administrator.  She said there is not any FTE for that.  She proposed and is moving forward with someone to help implement goals that will be set this year to help the County move forward with next steps to implementing the goals.  She also wanted someone to help with departments on what they are doing next year and in the years ahead as they start shrinking resources to meet the needs of their clients without the resources they have historically had.  She asked Alicia Hays, Children and Families, if she could take on the special projects while continuing her duties.  Richardson indicated Hays said she can.  Richardson indicated there is no plan at this state to discuss an Assistant County Administrator.  She updated the Board on the ODOT spraying.  She said that ODOT canít do less than 50 percent reduction for spraying because of the additional cost of doing it manually.  With regard to diversity efforts, there is an advisory group that reports to the County Administrator on diversity efforts.  She recalled for the past few years the members and the Management Team have been frustrated because they havenít been able to accomplish what they wanted.  She changed the membership and moved it to the department head level.  She reported that she has given tasks to be accomplished to the various department directors.  She indicated it was easier to hold them accountable for their diversity efforts.
b.  UPDATE/FY 2011/12 Budget.

Richardson gave a budget update.  (Copy in file).

Bozievich thought it was prudent to continue with furlough planning, even with the stress it causes.  He added if they donít follow through, it will be worse because they will have to make up more budget in less time and it will cost additional days in the long run.  He supported Richardsonís decision to move forward with the planning of the furlough days.  He hoped they could prevent most furlough days by negotiations that are ongoing.  He is pleased the employees are willing to help out with the budget situation.

Stewart concurred with Bozievich.  He commented that it is difficult but he thought they needed to do everything they can to maintain a certain service level.   He thought it helps them buy some time and keeps the service level at a level they believe is important.  He is hopeful because the employees are engaged in helping with some benefit ideas.  He hoped they wonít have to implement any of the furlough days.

Leiken agreed to continue to move forward on working on the furlough plan.

Sorenson commented that the best labor management environment is one which contracts are negotiated.  He said if the Board wants to initiate changes to existing labor contracts, they are better off with having the changes worked out through negotiations.

Richardson noted that all of their contracts have as a management right, the right to reduce work hours.  She said as a County they have the right to reduce work hours for any of their employees.   She added that they will still have to bargain the impact on it.  She added that a furlough is a reduction in hours.  She said that there are also provisions about layoffs and they are defined as reduction in hours.  She added that if they do layoffs, they have to let temporary and extra help people go first.  She indicated they were going to be sending the unions an official notice of intent to reduce work hours because they recognize they had the responsibility to bargain the impact and they wanted to make sure they conduct the bargaining session in time to do furloughs in the next fiscal year.  She noted the notifications were sent to all seven units on April 15.  She indicated they received unofficial notice prior to that.  She reported that two of the units didnít respond.  She added they have 14 days to respond and request to bargain or they waive it.  She noted for the rest of the units they are either in bargaining or they responded and said they wanted to bargain it.  She explained in order to  preserve the opportunity for the Board to use furloughs to bridge the gap, they have been talking to the units and continue to have negotiations.

14.  PUBLIC WORKS

a.   FIRST READING AND SETTING THE SECOND READING & PUBLIC HEARING/Ordinance No. PA 1285/In the Matter of Amending the Lane County Rural Comprehensive Plan (LCRCP) to Adopt a New Comprehensive Plan and Zoning Designation for the Area Within the Jurisdiction of the Coburg/Interstate-5 Interchange Area Management Plan (IAMP); Amending the Lane County Transportation System Plan to Incorporate the IAMP by Reference; Adopting an Official Lane County Interchange Area Management Plan Combining Zone Map; and Adopting a Severability Clause.

Handy asked if this was the implementation of the policies with the IAMP they adopted last year.

Lydia McKinney, Public Works, responded that these are the implantation policies that the Board adopted last year.

Handy asked if there were any new or different policy considerations.

McKinney replied that there were none.

MOTION:  to approve a First Reading and Setting a Second Reading and Public Hearing for Ordinance NO. PA 1285 for June 22, 2011 at 1:30 p.m.

Leiken MOVED, Bozievich SECONDED.

VOTE:   5-0.

b.   Ordinance No. 6-11/In the Matter of Amending Lane Code Chapter 16 to Add New Text and Designation for an Interchange Area Management Plan (IAMP) Combining Zone for the Coburg/Interstate-5 IAMP Area Within the Lane County Rural Comprehensive Plan (LCRCP) and Correcting a Reference to the Adopting Ordinance for the Lane County Transportation System Plan in Lane Code Chapter 16.400 (16.012, 16.297, 16.400 (Second Reading and Public Hearing: 6/22/11)

MOTION:  to approve A First Reading and Setting a Second Reading and Public Hearing for Ordinance No. 6-11 for June 22, 2011 at 1:30 p.m.

Leiken MOVED, Bozievich SECONDED.

VOTE:  5-0.
15.  COMMISSIONERS' ANNOUNCEMENTS

Leiken said he was involved with Athea Apartments last year.  He reported the ribbon cutting will be on June 10 at 1:00 p.m.  He said it is a Shelter Care project in Springfield.  He announced on June 14 at the Hilton there will be a Travel Lane County dinner.  He reported that the Springfield Chamber of Commerce is having a Chamber Fest at Roaring Rapids Pizza on June 15.

Stewart reported that yesterday he toured Lane County road projects.  He stated that all of the employees were working hard and they are doing great work.

Sorenson announced he will have a Senior Issues Forum this evening at the Hilyard Community Center in South Eugene at 6:30 p.m.

Handy commented that as of today, important citizen advisory committees have not been eliminated.  He said his view is they will be eliminated.  He said the publicís business should be decided in the public by the elected officials.  He stated what is at stake in Lane County in 2011 is that the publicís right to know is being whittled away.  He hoped the viewers appreciated the webcast and television cast because he said you donít know what you have until itís gone.

Bozievich announced a meeting tonight in Veneta at 6:00 p.m. at the Fern Ridge Chamber of Commerce.  He said they are inaugurating their wineries without walls.  He noted they are getting a licensed tasting room there for wineries that donít have tasting rooms.

Stewart announced on June 14 the Board will be touring forest and fish culvert projects.

17.    EXECUTIVE SESSION as per ORS 192.660

Per ORS 192.660 (2)(d) and (2)(h) for the purpose of labor negations and pending litigation.

18.  OTHER BUSINESS

None.

There being no further business, Commissioner Stewart adjourned the meeting at 2:45 p.m.

Melissa Zimmer
Recording Secretary