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October 14, 1998
REGULAR MEETING BOARD OF COUNTY COMMISSIONERS
Commissioners' Conference Room 1:30 p.m.

Commissioner Steve Cornacchia presided with Commissioner Ellie Dumdi, Peter Sorenson and Cindy Weeldreyer present. Bobby Green, Sr., was excused. County Administrator Bill Van Vactor, County Counsel Teresa Wilson and Recording Secretary Melissa Zimmer were also present.

12. PUBLIC COMMENTS

Charles Navarro, 82920 Oak, Dexter, said he was discussing getting the process of purchasing the library started, and continued to the next step. He said he has letters dated as early as April, 1997. He said he agrees with the vast majority of all of the discussion and the recommendation to put things on hold is not agreeable with him. He said they want to move forward, as their community has some inertia with respect to this project. He said what has never been done is an evaluation of the property in recognition of the deed restriction. He said they are looking to get to a fair price and move forward. He said he would like to see some sort of terms in a contract. He said he wants a commitment that the County will pursue public use. He said he would also like a right to occupy, a temporary lease or a commitment to get an appraisal to keep going forward. He added the right to occupy is very important. He said there are volunteers volunteering time and materials, and the sooner they can move on that, the more likely it will come to a conclusion that is beneficial to the library. He said for the community of Dexter, it is a key piece of property and to keep moving in the right direction.

Cornacchia stated there is a deed restriction on the property and the public use issue is not an issue. He wanted to know if Don Maddox had discussions and if their evaluation is based upon the value of the property with the public use restrictions taken into account.

Maddox responded the appraiser's evaluation is always for full cash value.

Carol Jung, 81805 Lost Valley Lane, Dexter, said she is on the Board of the Dexter Library. She said it was recommended to her that the property will be put on hold for an additional period of time and it concerns her. She added the librarian is an energetic woman who has managed the libraries in Dexter and Lowell. She said she is elderly and they want to do this for her, as well as all youth and elderly in the community. She said she may not be available if they have to wait too long and that is her concern.

Cornacchia wanted to know if the impression the group has given him is that they have the ability to spend $10,800. He said in light of the fact the value of the property will be higher than that, he wanted to know if the group was interested or capable of entering into an agreement for a market value acquisition.

Jung replied it would have to be raised because they do not have it now. She added they are interested.

Cornacchia added that one requirement the County has is to be in a situation where they believe the purchaser has the ability to perform over the period of the contract. He said that what would need to be obtained before entering into the contract is the ability to raise the funds over a period of time to pay the contract off.

Mike Owens, 82720 Lost Creek, Dexter, said he didn't see there was a problem with the money. He said he didn't see a problem with commitment. He added there are five schools and a lot of people who need the library. He said Eugene is too far away. He said he would like to see some type of agreement worked out.

Ken Babbs, 81774 Lost Creek Road, said when an offer was made of $10,800 it was based on $3,000 that was paid and considered to be a fair upgrade. He said he is hoping a plan where some of the money that needs to go to the road fund could come from another spot in the County, and there could be a way to bring that figure down. He said if the library could go forward, it would be fair and work for everybody. He said the main concern is that this has been going on for quite awhile. He added the building is going down hill very quickly.

Weeldreyer stated it is not that the County isn't doing anything, the Board said they will not sell it to anyone else. She said they made it clear from the beginning that this is a road fund asset and the road fund needs to be compensated at the fair market value. She said by the County not doing anything, it was in the Dexter Library's favor to give them time to raise the funds needed to make it whole.

Babbs said they didn't realize the appreciation would be added into the amount of money. He said they gave $10,800 for the building, and they wanted to know what the answer was. He said he wants to know what will work.

Maddox reported the property has been unoccupied for eighteen months. He said the normal process would be to attempt to dispose of it by a sheriff's sale process. He said after it was appraised it would be offered for sale at an oral auction, with the appraisal being the minimum bid.

Van Vactor said the piece that is missing is an appraisal that actually addresses the public use only clause.

Cornacchia stated it seems to be simple. He said an appraisal is needed and once the value is obtained, the County is bound by law to either hold a Sheriff's sale, or sell directly to them for market value. He added it could be sold to Dexter and then taken out of the general fund, which is not an option. He said an appraisal will be paid for by the road fund assets. He said the assessor's office would have an accurate reflection of what value is. He said he would be supportive of an appraisal to find out its value.

Sorenson said he is in agreement with getting an appraisal. He added, in terms of making a favorable purchase arrangement with the Dexter Library Board, this is a good time to buy real property because the interest rate is low. He asked what the interest rate would be on the property.

Wilson responded the Commissioners set the rate.

Maddox stated the appraisal should reflect the existence of the deed restriction. He said a competent appraiser will investigate the deed restriction and the problems of having it removed at the state level, but added they may not discount it. He said in order to get the deed restriction removed, an application needs to be made to the State Division of Highways.

Cornacchia said what is necessary is for the Board to state unequivocally to staff that the property be available under the law, to the Dexter residents for the purpose of a library. He said the recommendation today is to the County Administrator for a report back in two weeks.

Weeldreyer questioned what she should do with a $100 library check that was sent to her in June.

Wilson recommended to return it.

13. COUNTY COUNSEL

a. REPORT BACK/Disposition of Old Dexter Shop.

Wilson stated she gave the Board a written memorandum (that was copied to the Dexter Library Board) on the history of the property and how it was acquired. She provided an analysis of options separating two issues. She said one issue is how to dispose of the property (now that it is no longer needed); the second is what the obligations are with respect to the road fund. She said disposition could be a sheriff's sale or a direct transfer to the Dexter Library that is permissible under the statutes. She said with any choice of disposition, the public use restriction will continue. She said the other matter is the road fund obligations. She said she did a review on what the case law has been on interest earnings of an asset that has been acquired with road funds. She said the obligation has been whenever there has been an appreciation or a revenue stream from a road fund asset, the revenue stream must be repaid to the road fund. She said this property's value is about $56,000 and that is what the obligation is with respect to the road fund. She said that puts the County in a position of having to decide how to balance competing public interests.

14. EMERGENCY BUSINESS

Jim Mann, Land Management, stated he has an amendment being proposed by LCDC. He said they are going to have a hearing to consider public testimony. He said he wanted to get the Board's position on the proposed amendment. He said it defines densities for rural residential zoning in existing committed and developed areas of five acres and above. He said it allows counties to spend more time and effort at greater densities, addressing them in comprehensive plans and adequacy issues. He said he thinks it will help the County in the periodic review work program because most of the rural residential densities are five acres and above. He added if focus could be off those areas where there haven't been problems and put on smaller densities, it would be much more effective. He said he wanted the Board to support the bill and be able to submit their position to LCDC. He said he has a letter prepared for the Chair's signature that reflects some of the statements indicated in the staff report.

Cornacchia stated it appears to be a financial resource issue for the County. He said it saves steps and makes sense to him.

MOTION: to support the concept of the proposed amendment by LCDC.

Weeldreyer MOVED, Dumdi SECONDED.

VOTE: 4-0.

15. COMMISSIONER'S ANNOUNCEMENTS

Sorenson reported that he attended a decoupling meeting where he met with Representative Norm Dicks of Tacoma, who said he would be inclined to support either the administration proposal or the one offered by Representative De Fazio. He said he met with Ms. Kennedy, the Deputy under the secretary in the administration and she said they were going to recommend the De Fazio bill to allow counties to receive a guaranty or 25% of the Forest Service revenue, whichever their governor wants them to get. He said he met with the Natural Resources Committee. He said there is a lot of interest about this around the country.

He said he was cautioned by a number of Senate offices that unless the counties have a more unified position, it is unlikely that this will move forward in the next congress because they are hearing mixed messages from counties.

Cornacchia suggested that Sorenson talk with AOC to find out if the County's understanding with NACo is that they have already taken a position on the decoupling issue.

Sorenson stated that he, Bill Van Vactor, Terry Wilson and Capt. Huevell and Commissioner Weeldreyer all attended the Year 2000 Forum which included speakers from EWEB and Sacred Heart Hospital.

Weeldreyer stated she got a letter from the incoming NACo president announcing that AOC's recommendation for her to be appointed to the National Steering Committee on Transportation and Telecommunication was accepted and her appointment is official. She said she was the only County Commissioner out of 50 states that attended the conference. She said all local leaders need to start looking at telecommunications infrastructure in the same way roads, water and wastewater are important. She said it is all part of infrastructure that will show how competitive the County is in the new millennium.

Dumdi reported there was a meeting in Florence. She said at the very end of the meeting when the Heceta issue was being discussed with the intergovernmental agreement, there was one insertion into the intergovernmental agreement that caught people off guard. She said the issue was the addition of 40 acres of park land which needed water. She said she spoke with Bob Keefer who said that portion can be taken out of the intergovernmental agreement rather than cause any distress.

Van Vactor announced the President is setting up a teleconference on school violence tomorrow, and Robert Lewis will videotape it.

Cornacchia announced that at 4:30 p.m. he will attend a ceremony at School District 19, where Diane Cornacchia is receiving one of five Outstanding Teacher of the Year Awards for the Springfield School District.

There being no further business, Commissioner Cornacchia recessed the meeting at 3:30 p.m., to reconvene at 6:00 p.m. in Harris Hall.

Melissa Zimmer
Recording Secretary

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