Minutes
Oregon Parks and Recreation Commission Meeting
April 21, 2005
Columbia Basin Electric Cooperative—171 Linden Way
Heppner

Commissioners Present: John Blackwell, Chair; David Kottkamp, Vice-Chair; Bill Gregory; Jim Brown; Sharon Rudi
Commissioners Absent: Nik Blosser, Sue Musser
Staff Present: Tim Wood, Director; Dave Wright, Assistant Director, Operations; Cliff Houck, Manager, Resource Management and Planning; Kyleen Stone, Manager, Financial Services; Steve Shipsey, Assistant Attorney General; Jo Bell, Commission Assistant
Visitors Present: Terry Tallman, Morrow County Judge; Burke O’Brien, Morrow County Public Works; Karen Wolff, Morrow County Public Works; John Edmundson, Heppner Resident and Oregon State Parks Trust Board Member; Pat Harris, All-Terrain Vehicle Account Allocation Committee (ATV-AAC) Chair; Tyrrell Hart, ATV-AAC Class III Representative; Larry Runk, ATV-AAC Member-at-Large; Ernie Drapela, Oregon Recreation Trails Advisory Council Chair; Dan Broslin, Heppner resident; Tom Harris, Pacific Northwest 4-Wheel Drive Association; Barbara Bloodsworth, Morrow County; Bruce Sorte, OSU Extension Service;  Bob Nairns, Morrow County Public Works 

The meeting began at 9:00 AM

Oregon Parks and Recreation Commission Chair John Blackwell introduced new Commissioners Sharon Rudi, of Baker City, and Jim Brown, of Salem. Following self-introductions of the Commission, Staff and audience, Morrow County Judge Terry Tallman, Chair of the Morrow County Commission, welcomed the Commissioners and staff to Morrow County. Judge Tallman acknowledged the opportunities that the Commission and OPRD have given Morrow County, and the local leadership of Burke O’Brien and Karen Wolff in bringing the Morrow County OHV park to fruition. 

1. Approval of Agenda
The agenda was revised to include a status report of the new Willamette Valley Scenic Bikeway.

2. Approval of Minutes from the March 10, 2005 Commission Meeting 
Bill Gregory moved for approval of the March 10, 2005 minutes; David Kottkamp seconded. The motion passed unanimously, and the Commission unanimously approved the revised agenda.

No general public comment was received, and the agenda moved forward to the Director’s Update. 

3. Director’s Update (Tim Wood) 
OPRD Director Tim Wood reported on several items of interest:
Legislative Session: Wood provided an update of the Budget process—the second round of hearings is scheduled April 27-28, and final budget determinations will be made in a subsequent Committee (Joint Ways and Means, Natural Resources Subcommittee) work session following the Economic Forecast in May. Wood added that the Committee has “no apparent issues” with the Department’s budget. Wood told the Commission that  staff, following the direction of the budget committee, is reviewing the Department’s performance measures, and said staff will present the reworked (and reduced) performance measures to the Commission in Fall 2005. 

Related budget discussions of interest include:
•	Oregon Garden—Wood noted that, although “conversations are continuing,” it now appears that the agency will not have much involvement with the Oregon Garden.
•	Tillamook Interpretive Center (Oregon Department of Forestry)—Wood said that although Legislators “foresee a larger role” for the Department in the operation of the Interpretive Center, it appears that an actual transfer  of the center from ODF to OPRD will not take place. 
•	At the Governor’s request, the Department has increased its planned spending for the Sesquicentennial.

Wood also reported that four bills, all of which affect the Department, had been heard by the House Committee on Veterans’ Affairs: House Joint Resolution 34, and House Bills 2425, 2878 and 2739. Wood noted that he expects HJR 34, which would refer Ballot Measure 66 back to the voters in the 2006 Primary Election and also reduce the funds dedicated to OPRD while providing funds for veterans’ services, to be “reworked” in the House Revenue Committee. House Bill 2425, which would provide free park use to veterans with service-related disabilities, moved on to the Revenue Committee. 

Wood provided testimony before the House Committee on Veterans’ Affairs regarding both HB 2878 and 2739, relating to War Memorials and funding for non-profit veterans groups. Although Wood expressed confidence in the Department’s existing authority (through its acquisition and grants programs) to fulfill the intent of the legislation, he noted a “strong desire” on the part of the committee to have the language in statute. Wood added that during the committee’s discussion, an effort was made to remove the Department’s authority to exercise the power of eminent domain. After hearing staff testimony regarding the agency’s use of eminent domain, the subject was dropped. Both bills passed out of the House and on to the Senate.
Umpqua Lighthouse: The agreement (for extension of  the current lease for one year,  with a list of actions that Douglas County will complete in order for certain Umpqua Lighthouse property to be transferred to the County in fee simple) with Douglas County has been signed. Wood noted that Douglas County will provide a status report.
Vista House: A contractor is on board (with permits) to construct the inclined walkway at Vista House; June 15 is the expected completion date. The contract to install an accessible lift will soon be awarded. Late August or early September is the expected completion date for the project. Wood expressed confidence that the City of Gresham would give its “OK” for Vista House to be opened once the inclined walkway is in place. Note: The contract for the accessible lift was awarded post-meeting to JHC Commercial of Portland, in the amount of $350,998.00. 
Earth Day: 
Governor Kulongoski will participate in Earth Day activities at Tryon Creek State Park, Friday, April 22.
Other items: Wood told Commissioners that beginning with the June 2, 2005 meeting, staff would provide a “sneak preview” of topics for coming meetings. The  June  meeting
agenda is expected to feature requests for grant awards and approval of the L.L. “Stub” Stewart Memorial State Park earthworks and infrastructure contract, as well as part of the Silver Falls-DeSantis acquisition. 
No Commission action was requested. 

4. Oregon State Parks Trust Update (John Edmundson, for Sharon Leighty)
Oregon State Parks Trust (OSPT) Board member John Edmundson—speaking on behalf of OSPT Executive Director Sharon Leighty—provided an overview of the organization’s growth and contributions to state parks, and a review of priority projects. OSPT is a not-for-profit organization dedicated to preserving and enhancing Oregon’s outstanding natural, scenic, cultural, historic and recreation sites by raising funds and building partnerships with individuals, businesses and community organizations. Edmundson described OSPT as one of “four State Parks players,” along with the Commission, the Department and Friends Groups statewide. Edmundson noted that OSPT is “particularly proud” of the Vista House project. OSPT recently concluded a $2 million campaign for the restoration of Vista House at Crown Point, in which the organization not only exceeded its fundraising goal, but concluded the campaign a year ahead of schedule as well. Current priority projects include a campaign to restore and maintain several of Oregon’s lighthouses; a Kam Wah Chung & Co. Museum restoration campaign; sustainable park practices models; and the Willamette River Water Trail Initiative (Phase 1). In concluding his presentation, Edmundson noted that OSPT “(needs) money to raise money,” and added that the organization is trying to increase its receipt of unrestricted grants in order to maintain OSPT operations.
In response to David Kottkamp, who asked, “What one thing can we do?” Edmundson said “timely responses” (on the part of the Department and the Commission) are critical for grant applications. 
No Commission action was requested.

5. Willamette Scenic Bikeway Status Report (Chris Havel)
Chris Havel, OPRD Communications Coordinator, reported that the route of the Willamette Scenic Bikeway has been finalized. Former OPRD Recreation Trails Coordinator Sean Loughran was instrumental in laying the groundwork for the bikeway, which began as a cooperative project between Cycle Oregon, Oregon Department of Transportation (ODOT) and OPRD. Havel told the Commission that signage for the bikeway has been approved and fabrication will start soon. ODOT is assisting with the final phase of completing agreements for the signage between OPRD and local governments. Havel noted that it will be several months before the signage is in place, but once completed, the route will be marked clearly north to south. 
In response to questioning by David Kottkamp, Havel noted that once print materials for the bikeway have been completed, a website will also be created, and will include maps and links to local tourism. Visitor John Edmundson added that Oregon State Parks Trust is providing funding for bikeway publications. John Blackwell reminded the audience that a kick-off event—a 134-mile ride—for the new bikeway is set for the weekend of June 25-26. First Lady Mary Oberst is among those already registered for the ride.
No Commission action was requested. 

6. Approval of Delegated Authority Reports  
a) Contracts (Kyleen Stone)
The Delegated Authority Report for Contracts summarizes all contracts signed by the Director since the March 10, 2005 Commission meeting. The contract instruments (each not to exceed $75,000) included Personal Service Contracts (7); Architectural and Engineering Contracts (1); Work Orders (under the Agreements to Agree for Architectural and Engineering Services) (4); Public Improvement Contracts (1);  Interagency Agreements (40); and Service Contracts (1). 

b) Natural Resources (Dave Wright)
The Delegated Authority Report for Natural Resources summarizes all actions approved by the Director since the March 10, 2005 Commission meeting. These actions included four Scenic Waterways Notifications (Seneca Jones Timber Company; Mr. John Dunbar; Portland General Electric; and Weyerheauser Corporation) and two Ocean Shore Alteration Permits (Breakers Point Homeowners Association; and Cannon Beach Conservancy). 

7. Internal Audit Report (Kyleen Stone)
Financial Services Manager Kyleen Stone provided an overview of the Department’s Internal Audit (IA) Program, whose function is an independent appraisal established to conduct reviews of the agency’s operations and procedures. Internal Auditor findings and recommendations—and  corrective actions taken by management—are reported to the OPRD Audit Committee, appropriate OPRD management, and the Department of Administrative Services (DAS) Internal Auditor. Internal Audit engagements are conducted in conformance with the international Standards for the Professional Practice of Internal Auditing, the Practice Advisories, and the Code of Ethics as promulgated by the Institute of Internal Auditors (IIA), and encompass examination of various agency functions and control systems, including cash receipts, postage, disbursements, travel, purchases, supplies and merchandise inventories, payroll, sales (including external vendors), grants, customer refunds, safeguarding of capital and non-capital assets, receivables, and information processing.

During 2004, five of ten IA engagements were investigatory, and were given highest priority. One investigation was external, performed for an entity outside of OPRD. The investigations included #04-01, Honeyman State Park Cash Handling Irregularities (resulting in the formal resignation of the investigated employee); #04-04, Friends of  Silver Falls Misappropriation of Funds (resulting in an OPRD Internal Audit Report, shared with the Friends of Silver Falls and Department management); #04-05, Honeyman Secretary of State Hotline Complaint (resulting in the determination that projects or portions of projects requiring timber harvest or removal will be managed by the Department’s Forestry Unit, with required permits and reviews, and the work bid in accordance with established rules);  #04-06, Milo McIver Missing Change Fund (resulting in management implementing recommended changes to increase controls over change fund and depositing procedures); #04-07, South Beach Fee Overrides and Refunds (resulting in management agreeing with the recommendation to provide statewide training to ensure compliance with specific OARs and Department policies and procedures); and #04-08, South Beach Excessive Bank Corrections (resulting in management agreeing to provide training and establish a process to monitor and ensure that recommendations were effectively implemented to achieve the desired results).  

As time permitted, the other five engagements performed included: (1) Change of Administrative Employees, (2) Requested Audits, (3) Monthly Purchasing, Travel, and Revenue Reviews, and (4) Consulting Engagements. In addition, reviews of financial documents in the Financial Management System (FMS) were also conducted to ensure management complied with timely approval and release of financial documents. 

The criteria used for developing the 2005 Internal Audit Plan were 1) audits requested by management,  2) locations not audited within the previous three years, 3) locations having a change of management, 4) locations having a change of administrative employees, and 5) new operations or a significant change to operations. Any location falling into two or more of these categories was placed on the 2005 engagement schedule. In addition, the Internal Audit Committee will participate in a department-wide risk assessment process to identify and assess the level of risk for the Department.  The committee identified 15 areas of risk including the Facility Investment Program, grants, contracts and agreements, and capital assets.  The next steps will be to determine the probability and level of exposure for the Department, and to develop a plan for monitoring the items of highest risk. Monthly reviews will also be performed for the following: the Small Purchase Order Transaction System (SPOTS); the Corporate Travel Card program; revenue transactions processed as cash overages and shortages; and FMS financial document status. Also included in the 2005 Plan is Internal Auditor Continuing Education; a minimum of forty hours will be allocated for training. 
No Commission action was requested.

8. Financial Services Update (Kyleen Stone) 
Financial Services Division Manager Kyleen Stone reported that the March 2005 forecast puts the lottery-funded Parks and Natural Resources Fund at $58.33 million, approximately $8 million higher than projected at the close of the 2003 Legislative session. Stone also said that both park user fees and RV registration collections are finishing higher this biennium than previously projected, with park user fees up $1 million, and RV registration revenues up about $600,000. Additionally, the agency will enjoy substantial savings this biennium due to the decision not to move forward with the financial system point-of-sale plans, and vacancy  savings. Finally, a change to state accounting policy that went into effect October 2004 may result in the need to carryover unexpended funds related to the Facility Investment Program and Lewis and Clark Bicentennial activities. The carryover requires approval by the Legislature.

For the 2005-2007 biennium, Stone reported that the March 2005 forecast puts the Parks and Natural Resources Fund at $70 million. Stone noted that it is unclear how rising fuel costs will affect park user fees.  

Stone also reported on a recent series of Secretary of State audits, including the “Change of Director Review.” 
During discussion, the Commission and staff discussed the possibility of creating a “backup plan” for the signing of the Director’s expense statements in the absence of the Commission Chairman. Currently only the Chairman signs off on the statements.
No Commission action was requested.

9. Request to Increase Delegated Authority for Contracts (Kyleen Stone)
Staff requested that the Commission raise the threshold of the Director’s delegated authority to execute contractual instruments from $75,000 to $150,000.  During discussion, Financial Services Division Manager Kyleen Stone reported that on January 17, 2002, the Oregon Parks and Recreation Commission delegated authority to the Director to execute contractual instruments—including agreements, contracts, and memoranda of understanding—up to $75,000.  Contractual instruments in excess of $75,000 in value have continued to be submitted to the Commission for approval.  Until March 1, 2005, that threshold was consistent with the Department of Administrative Services (DAS) requirement that all state agencies use DAS to solicit and contract for goods and services with a value exceeding $75,000.

A legislative rewrite of ORS Chapter 279, the state’s procurement statutes, changed Oregon’s contracting laws effective March 1, 2005.  Because of those changes, DAS has increased their delegated authority to agencies to a new threshold of $150,000. Stone noted that the change represents increased workload for OPRD staff, but added that the agency is  prepared with sufficient staffing, and expects to see a reduction in the processing time for these contracts. Stone told the Commission that the Department processes about 20 contracts each biennium that are between the old threshold amount of $75,000 and the new DAS threshold of $150,000. 
Jim Brown moved to approve the request to increase the Director’s delegated authority to execute contracts from $75,000 to  $150,000; David Kottkamp seconded. The motion passed unanimously. 

10. Economic Impact Study Results (Kyleen Stone)
Financial Services Division Manager Kyleen Stone reported on the findings of a study that evaluated the economic impact of the Department’s Facilities Investment Program and grants programs on the communities where those construction investments were occurring. The independent analysis was conducted by Oregon State University (OSU), with Bruce Sorte, OSU Community Economist, as the principal investigator. Sorte’s study team extracted data from OPRD contract and grant files from a representative sample of primarily four counties: Coos, Deschutes, Marion and Umatilla. The data was evaluated and extrapolated for all of Oregon using a proprietary input-output model known as Impact Planning (IMPLAN).

The results of the study show that Oregon Parks and Recreation Department grants and facility investments totaling roughly $15 million per year provide funding for the equivalent of 350 full- and part-time jobs each year. For each OPRD dollar spent in local communities, an additional 60 cents is spent with suppliers and service industries, giving a boost of $28 million to Oregon’s economy each year. In addition, OPRD’s expenditures reinforce industries—primarily construction—which require skills that have been underutilized as natural resource industries have struggled, and reduce cyclical unemployment when projects are done in the parks “off-season.”
During discussion, Sorte explained that OPRD benefits local economies through its practice of “buying locally” during projects. Sorte added, “(OPRD) spreads its dollars around better than most agencies.” Despite what Sorte described as a “conservative” approach in the analysis of the data, the results showed that the Department impacts 85 percent of Oregon’s numerous economic sectors. 
No Commission action was requested. 

11. OHV White Paper Adoption (Kyleen Stone)
Staff requested Commission adoption of the Oregon Parks and Recreation Department Off-Highway Vehicle Program White Paper. A draft version of the document was presented at the March 10, 2005 meeting of the Oregon Parks and Recreation Commission, and Commissioners’ comments were incorporated into the final draft. At the Commission’s request, the agency’s responsibility to “minimize conflicts through an enlightened balance of usage and demonstrated empathy for non-OHV users” was added to the final document.

Financial Services Division Manager Kyleen Stone explained that the white paper is based on the 2002 Statewide Comprehensive Outdoor Recreation Plan; the 2004 Oregon Statewide Trails Plan (OSTP); Target 2014; and ORS 390.550 through 390.590, and defines OPRD’s fiduciary and program responsibilities for managing this program, consistent with administration of other grant programs managed by the Department. The white paper acknowledges that off-highway vehicle (OHV) recreation is one of many outdoor activities enjoyed by thousands of Oregonians, and is consistent in several ways with the mission of the  Department to provide and protect outstanding natural, scenic, cultural, historic and recreational sites for the enjoyment and education of present and future generations. 
Pat Harris, Chair of the All-Terrain Vehicle Account Allocation Committee (ATV-AAC), told the Commission that ATV-AAC members “do not have a problem with the (white) paper,” noting that the document encompasses most of the Committee’s responsibilities. Harris also advised the Commission that the ATV-AAC anticipates a request for funding from both the Bureau of Land Management (BLM) and United States Forest Service (USFS), to help the agencies fulfill NEPA (National Environmental Policy Act) requirements in the course of completing their OHV strategies and plans. Harris told the Commission that the ATV-AAC would, in turn, have to request an increase in its own funding in order to assist  the BLM and USFS.
Bill Gregory moved to adopt the OHV White Paper; David Kottkamp seconded. The motion passed unanimously.

12. Recreation Trails Grants Approval (Kyleen Stone)
Staff requested Commission approval of the ranking of Recreation Trails Program Grants as determined by the  Recreation Trails Advisory Committee  at its  March 2005 meeting. 
The forty-seven grant applications ranked by the Committee included trail construction, improvement, and maintenance and repair projects from across the state. The Recreation Trails Grant Program is federally funded as part of the Federal Highway Administration. Federal guidelines require a minimum percentage of funding for motorized (30 percent), non-motorized (30 percent) and diverse use projects (40 percent). Financial Services Division Manager Kyleen Stone told the Commission that, due to revisions to the annual apportionment of funds by the Federal Highway Administration, OPRD is currently awaiting confirmation of the total amount of money available to award in grants. Stone said staff  anticipates about $850,000 will be available. The rankings approved by the Commission will be used to determine which applicants receive funding based upon the apportionment of funds and subject to the minimum requirements for motorized, non-motorized and diverse use projects. The final recommendation will be submitted to the U.S. Department of Transportation, Federal Highway Administration for review and authorization. 
During discussion, Commissioners asked about the scoring criteria for ranking the grants. Ernie Drapela of the Oregon Recreation Trails Advisory Council described the top three scoring criteria as 1) the quality of the project; 2) the readiness of the project, including matching funds; and 3) sustainability. 
Sharon Rudi moved to approve the ranking of the Recreation Trails Grants; Jim Brown seconded. The motion passed unanimously. Director Tim Wood noted that staff will report back to the Commission with the actual grant awards  at a later date.

13. FIP Status Report (Dave Wright)
Assistant Director of Operations Dave Wright reported that the Facilities Investment Program (FIP) is on track to spend $15 million by the close of the 2003-05 biennium, with reduction of the backlog of deferred maintenance continuing to be a priority. In addition to Backlog Projects—those projects necessary because preventive, routine or scheduled maintenance has been deferred—the Department categorizes projects as Enhancement Projects (intended to position the park system to meet future recreation needs as well as current unmet need), Efficiency & Sustainability projects (resulting in reduced operating costs through improvements to utility systems or facilities), and Legacy Projects (intended to preserve, restore, stabilize, rehabilitate, or protect those historic structures that are the icons of the Department and significant to the cultural history of the State). Key projects this biennium (from all categories) include the Vista House restoration, the Fort Stevens infrastructure upgrade, the construction of L.L. “Stub” Stewart Memorial State Park, the design of Crissey field, the addition of Adirondack cabins and the upgrade of the Hiker/Biker Camp at Ecola State Park, the development and implementation of a new Environmental Management System, repairs to Kam Wah Chung & Co. Museum, and a petroglyph protection project at The Cove Palisades. 
No Commission action was requested. 

14. L.L. “Stub” Stewart Memorial State Park Status Report (Dave Wright)
Assistant Director of Operations Dave Wright reported that all outstanding issues with regard to the exchange of properties at L.L. “Stub” Stewart State Park have been resolved, and the transaction will close soon. Wright told the Commission that the next phase of construction is the park infrastructure. This work will provide approximately 7,800 feet of two-lane paved entrance road, park infrastructure, roads and site grading for the proposed park development concept areas.  The contract for the earthworks and infrastructure (a $10 million contract) will be presented for Commission approval at the June 2, 2005 teleconference. Staff anticipates advertising the contract in late April, and opening bids on May 11, 2005. The project has been set up so that one of the campground loops may be deferred as needed to stay within the limits of the project budget. 
No Commission action was requested. 

15. Contracts Approval (Cliff Houck)
a) Harris Beach Overlays
Staff requested Commission approval to award the contract for repair and realignment of the entrance road at Harris Beach State Park to Tidewater Contractors of Brookings, in the amount $234,319.00. Tidewater Contractors was the sole bidder for the contract.
Bill Gregory moved to approve award of the contract; Sharon Rudi seconded. The motion passed unanimously.
b) Prineville/Jasper Point Small Restroom/Shower Building Installation
Staff requested Commission approval to award the contract for installation of a pre-fabricated restroom and shower building (including removal of parts of the existing facility) at Jasper Point in Prineville Reservoir State  Park to the lowest qualifying bidder, 
CXT Precast Products of Spokane, Washington, in the amount of $137,636.25. There were two bidders for the contract.
David Kottkamp moved to approve award of the contract; Jim Brown seconded. The motion passed unanimously.

16. Oregon State Police Interagency Agreement (Dave Wright)
Staff requested Commission approval of a memorandum of agreement between OPRD and the Oregon State Police (OSP).  The two-year agreement—funded at $585,000—is  for an enforcement services program to supplement OPRD’s enforcement program.  OSP staff will act as public relations contacts for users; and enforce Park Area and  Ocean Shore violations, Oregon State Laws, and the Deschutes River Boater Pass Program and Scenic Waterway Rules.  The agreement funding is divided between two areas; $400,000 for Parks/Ocean Shores and $185,000 for the Dechutes River.  
During discussion, Assistant Director of Operations Dave Wright explained that this is a continuation of a long-standing arrangement; OPRD has contracted with OSP for many years. The dollar amount of the agreement hasn’t changed, but budget cuts have changed OSP’s staffing for the agreement, and fewer man hours are being contracted. 
Jim Brown moved to approve the Memorandum of Agreement; Sharon Rudi seconded. The motion passed unanimously.

17. Rule Adoption: General Park Area Rules (Dave Wright)
Staff requested Commission approval of amendments to Oregon Administrative Rules (OAR)  Chapter 736, Divisions 10 and 15—general administrative rules for park areas. 
Assistant Director of Operations Dave Wright explained that Commission approval for rulemaking was granted at the October 28, 2004 Commission meeting.  All rules dealing with park operations have been consolidated into Division 10 and the rules dealing with revenue and rates have been consolidated into Division 15. The proposed revisions were published in the December 2004 Oregon Bulletin for review and comment. No public comments were received.  The rules have also been reviewed by the Attorney General’s office, and all requested modifications have been incorporated. The rule revisions will become effective upon Commission approval and filing with the Secretary of State.  
David Kottkamp moved to adopt the rules; Bill Gregory seconded. The motion passed unanimously.
 
18. 2003-2005 Acquisitions Status Report (Dave Wright)
Assistant Director of Operations Dave Wright reported to the Commission that $2,012,331.88 remains of the $7 million that has been available for acquisitions this biennium.  Wright added that staff is working on two properties that should close by June 30, 2005. The first is the Union Pacific Railroad parcel at Wyeth in the Columbia Gorge  (the Commission has already approved this purchase), and the second is a portion of property at Silver Falls, all of which the Department hopes to purchase. 

Acquisitions completed during the 2003-05 biennium include Guy Talbot, Multnomah County; Sisters Rock, Curry County; Sumpter Dredge, Baker County; Kendall Bar, Jackson County; Port Orford Heads, Curry County; Pilot Butte, Deschutes County; Sunset Beach, Clatsop County; Hares Canyon, Tillamook and Washington counties; Van Duzer Corrider, Tillamook County; Thompsons Mills, Linn County; Fort Yamhill, Polk County; Ocean Shore, Lincoln County; Tryon Creek, Multnomah County; Banks-Vernonia, Washington County; Willamette Greenway, Linn, Marion, and Polk counties; Wallowa Lake Highway, Wallowa County; Succor Creek, Malheur County; and Tumalo, Deschutes County. A total of 938.99 acres was acquired, at a cost of  $4,987,668.12. 
During discussion, Wright noted that the Department acquires on average 500 acres each biennium. In BI 2003-2005, the agency benefited from some large gifts. 
No Commission action was requested. 

19. Real Estate Approval (Cliff Houck)
a) Silver Falls—DeSantis Acquisition
Resource Management and Planning Manager Cliff Houck reported that staff is currently working toward a purchase agreement for two parcels of land—a total of 358.64 acres—adjacent to Silver Falls State Park. The property is owned by the DeSantis family, who recently approached the Department to propose the acquisition. The parcels are located on the north boundary of the park and could provide potential for equestrian camping and trailhead, North Falls conference facilities, and additional RV/tent camping with trail connections to the canyon.  The sites lend themselves well to this type of development which is otherwise not available within the current park boundary due to natural and cultural resource constraints. Staff anticipates bringing a purchase agreement  before the Commission for approval at its June meeting.
No Commission action was requested. 

b) Booth Wayside Easement—Lake County
Staff requested Commission approval to complete an exchange of easements with Mr. Maurice Montgomery of Lake County, so that Mr. Montgomery might gain permanent easement to his property, which is landlocked by Booth Wayside. In the exchange, Mr. Montgomery will grant OPRD a permanent easement (valued at $220.00) across a portion of his property, allowing access to currently inaccessible park property. OPRD will in turn grant easement (valued at $1,100.00) to Mr. Montgomery, who will pay the difference in value of $880.00.
Bill Gregory moved to approve the exchange of easements; Sharon Rudi seconded. The motion passed unanimously.

c) Luckiamute Landing Slope Easement—Polk County
Staff requested Commission approval to grant a slope easement to Polk County at no cost for replacement of the Buena Vista Road Bridge that is adjacent to Luckiamute Landing. 
The project will modernize the bridge and add safety features, and requires reshaping the backslopes of the roadbed. There will be minimal effects to the park. Based on appraisal work that has been completed in the area, staff determined the fee value of the easement to be $82.00, which led staff to recommend that the easement  be granted at no cost to the County. 
Jim Brown moved to approve granting of the easement at no cost; David Kottkamp seconded. The motion passed unanimously.

20. Silver Falls—Smith Flats Forest Improvement Project (Dave Wright)
Staff requested Commission approval to award a timber sale contract to Frank Lumber Co., Inc., the highest scoring bidder among four who competed for a contract to thin and space approximately 88 acres of second growth Douglas Fir at Silver Falls State Park. Approximately 1,580,000 board feet of Douglas Fir will be removed during the completion of the contract. The bid proposals were scored based on price, proposed harvest plan, and understanding of the issues associated with the Forest Practices Act. 
Bill Gregory moved to award the contract; Dave Kottkamp seconded. The motion passed unanimously.

21. Investment Strategy Subcommittee Update (Kyleen Stone and Bill Gregory)
Financial Services Division Manager Kyleen Stone reported on the April 12 meeting of the Investment Strategy Subcommittee, which includes Commissioners Bill Gregory, Sue Musser and Nik Blosser, and Department staff. Representatives of Trust for Public Land (TPL) and The Nature Conservancy (TNC) were also present. Stone commented that TNC shared valuable information about GIS resources relating to ecosystems statewide. 

The subcommittee met to discuss three key topics: acquisitions, fee waivers, and the Facilities Investment Program (FIP). Stone noted that OPRD Planning Manager Kathy Schutt will be studying acquisition needs based on capacity and needs by regions identified in the Statewide Comprehensive Outdoor Recreation Plan (SCORP). She also commented that the group is “exploring alternatives” to an outright suspension of day-use fees. Stone told the Commission that the subcommittee did not come to a conclusion regarding the Facilities Investment Program, i.e. how far should the Department buy down the FIP backlog?—but expressed a desire to balance the backlog buy down with acquisitions. Stone noted that “the resources are available now” for acquisition, but that the Legislature is urging Department staff to bring the backlog balance to zero. 

Bill Gregory added that the subcommittee is working on a “pro-active” acquisitions strategy. He thanked the staff for their excellent support, and added that the subcommittee is on schedule with its timeline for bringing recommendations to the full Commission. 

The subcommittee will meet again on June 22, in Portland, and August 3, in Brookings.
No Commission action was requested.

22. Commission Discussion
There was no Commission Discussion.

The meeting adjourned at 11:03 AM.

Respectfully Submitted,

Jo Bell
Commission Assistant