Minutes
Oregon Parks and Recreation Commission Meeting 
September 2, 2004
1705 Main Street—Baker City, Oregon

Commissioners Present:   John Blackwell, Chairman; David Kottkamp, Vice-Chairman; Nik Blosser; 
Sue Musser; Bill Gregory; Roberta Conner

Staff Present:   Tim Wood, Acting Director of the Oregon Parks and Recreation Department and Assistant Director, Operations; Kyleen Stone, Financial Services Manager; Roger Roper, National Register Program Manager; Rick Taylor, Area Manager, OPRD Area 6; Jim Hutton, Assistant Area Manager, OPRD 
Area 6; Jo Bell, Commission Assistant

Other Visitors Present:   John Edmundson, Oregon State Parks Trust Board Member and Heppner resident; Carl R. Kostol, Baker City resident

The meeting began at 8:30 AM

1.	Approval of Agenda 
The agenda was adjusted to include supplemental information for Agenda Item 6b; Agenda Item 6c was deleted; and Agenda Item 12 was moved forward in the meeting schedule.      
David Kottkamp moved to approve the adjusted agenda; Bill Gregory seconded. The motion passed unanimously.

2.	Public Comment
Mr. Carl R. Kostol, a resident of Baker City, came forward to comment on the proposed development of an ATV park near Unity Lake. Kostol called the proposal “the single worst idea I have ever heard in my life.” 
In response to John Blackwell’s invitation to offer reasoning for his opinon, Kostol declined further comment, saying that he only wanted his statement on record. John Blackwell assured Kostol that his opinion was recorded. No Commission action was requested. 

3.	Approval of Minutes from the August 5, 2004, Commssion Meeting 
David Kottkamp moved to approve the minutes; Bobbie Conner 
seconded. The motion passed unanimously.

4.	Acting Director’s Update (Tim Wood)
Tim Wood invited the Commission to attend  "Budget 101 for Boards and Commissions" (Presented by DAS)—September 23, 2004. 
No Commission action was requested.

5.	Approval of Delegated Authority Reports  
a) Contracts (Kyleen Stone)
The Delegated Authority Report—Contracts summarizes all contracts signed by the Director since the August 5, 2004, Commission Meeting. The contract instruments (each not to exceed $75,000) included Personal Service contracts (4); Architectural and Engineering ATA work orders (3) and contracts (2); Public Improvement contracts (7); Interagency Agreements (5); Intergovernmental Agreements (2); Service Contracts (1) and Special Agreements (1). 
Bill Gregory moved to approve the report; David Kottkamp seconded. The motion passed unanimously.
b) Natural Resources (Tim Wood)
The Delegated Authority Report—Natural Resources summarizes all actions approved by the Director since the August 5, 2004, Commission Meeting. These actions included Scenic Waterway Notifications (3) and Ocean Shore Alteration Permits (2).
Bill Gregory moved to approve the report; Bobbie Conner seconded. The motion passed unanimously. 
	
6.	Real Estate (Tim Wood) 
a) Wyeth Property Acquisition and Subsequent Sale of a Portion 
The Wyeth Property Acquisition represents a partnering effort between the Department, US Army Corps of Engineers and the Bureau of Indian Affairs.  OPRD has been working with Union Pacific Railroad to acquire a parcel of Columbia River front land at the Wyeth interchange in Hood River County.  The property contains approximately 140 acres but much of it is submerged land; approximately 56 acres are upland. The property has been of interest to the Department because it is located at a freeway interchange with ready access.  The US Army Corps of Engineers identified this site as a Columbia River tribal fishing access site.  The Corps has been acquiring and developing sites along the river for tribal fishing access and transferring them to the Bureau of Indian Affairs.  The Corps agreed that if a portion of the site could be acquired for tribal fishing, they would build an overpass to provide access.  The overpass would be maintained by OPRD after construction. The property was appraised in 2000 at $6500 per acre.  Union Pacific Railroad accepted that appraisal and has agreed to sell the property to OPRD for $358,600.  The Corps has offered to pay $67,500 for the westerly portion of the property that will become the in-lieu site for tribal fishing access. Staff recommended  approval of this acquisition and sale of a portion to the Corps of Engineers. 
Bobbie Conner reported to the Commission that Louie Pitt, Director of Governmental Affairs, Confederated Tribes of the Warm Springs Reservation, had expressed the Confederated Tribes’ support of the Wyeth property acquisition to Conner during a phone conversation September 1, 2004. Conner moved to approve the acquisition; Dave Kottkamp seconded. The motion passed unanimously. 

b)	Sale of Fort Stevens Duplex
In November 2003 the Oregon Parks and Recreation Commission authorized the Department to contract an appraisal and prepare to offer for sale a duplex located at Fort Stevens State Park.  The duplex, constructed in the early 1900’s, was acquired by OPRD in 1996 for $195,000. The duplex contains approximately 4,800 square feet of living space. Prior to sale, staff  worked with the Friends of Old Fort Stevens to determine alternatives, but was unable to find any other non-profit organization or historical group that was willing to take on the long-term management and maintenance of the building. An appraisal was completed which estimated the property’s value at $220,000. The Department offered the property for sale by sealed bid, with an August 27, 2004, deadline. Terms of the sale include a covenant requiring the purchaser to maintain the historical integrity of the exterior of the building. Two bids were received, and opened on August 30. The bid from Larry and Cheri Epstein and Nancy Chase of Portland was for $250 over the highest bid received up to $246,000.  This bid was made subject to review and approval of a preliminary title report which the bidder will obtain.  Both bids included checks for 10 percent of the purchase price. Staff recommended Commission approval to accept the Epstein/Chase bid for $221,251.00. 
In response to questioning by Bobbie Conner, Tim Wood said the Department does not know whether the potential buyers intend commercial or residential use for the property. Bobbie Conner moved to approve the sale; David Kottkamp seconded. The motion passed unanimously.
c)	DELETED AGENDA ITEM—Longbell Tract Acquisition
Tim Wood explained that the Department had been working with the Oregon Department of Forestry and the Oregon Department of Fish and Wildlife in regard to the potential acquisition of the Longbell Tree Farm in the Upper Klamath Basin. Just days before the September 2 Commission meeting, the  Department of Forestry decided not to bid for the property.
No Commission action was requested.
 
7.	Request for Rule Approval: Land Acquisition and Exchange
Policy (Tim Wood)
During the February 26, 2004, Commission meeting, the Department presented a draft of its Land Acquisition and Exchange Policy for  Commission review and subsequently submitted its proposed policy to the Secretary of State and the Oregon Bulletin for publication and public comment.  One comment letter was received; no requests for public hearing regarding this policy were made; and language changes suggested by Steve Shipsy, Assistant Attorney General, and Fran Recht of the Ocean Shores Conservation Coalition were incorporated into the rule as it is now presented. This rule represents the mere advancing to Oregon Administrative Rule of what has been long-standing internal OPRD policy. Staff recommended that the Commission approve the Department’s proposed Land and Acquisition Policy as a formal rule.
After commenting that the proposed rule does not represent a change of policy, Nik Blosser moved to approve the rule; David Kottkamp seconded. The motion passed unanimously.

8.	Request for Approval of Forestry Policy (Tim Wood)
House Bills 2344 and 3152 passed by the 2003 Oregon Legislative Assembly required state agencies with oversight responsibilities for state forestlands to adopt forest management plans or policies that: 1) establish forest health programs and management strategies designed to reduce the risk of catastrophic loss of forest resources from disease and insect infestation; 
2) establish goals and strategies for managing forest fuel accumulation in order to reduce the risk of catastrophic fires in areas historically subject to frequent, periodic fires; and 3) restore and recover forestlands burned by fire  so that social, economic and environmental values are not lost due to delay.
The Department has been managing its forests to meet the goals of the policy, but without benefit of a formal internal policy.  The purpose of this item is to gain adoption of a policy that provides direction for the management of the Department’s forest resources.  Staff recommended that the Commission approve adoption of the proposed Forest Management Policy.
	      Bobbie Conner moved to approve the policy; Bill Gregory seconded. 
The motion passed unanimously. 

9.	Request for Rulemaking: Revisions to OAR 736-051-0000 through 0050,         
relating to Dispute Resolution for Archaeological Permits (Roger Roper)
The State’s first archaeological dispute resolution rule was created at OPRD in 1994 as a consequence of legislative mandate. During the last legislative session, the duties of the Dispute Resolution Commission were transferred to the Mark O. Hatfield School of Government and the Commission was abolished. This request for action would allow the existing dispute resolution rule (OAR 736-51-0000 to -0050) to be amended or, if counsel requires, to replace the rule with model rules adopted by the Attorney General. 
Bobbie Conner suggested that funding be allocated for training in cultural resource issues for staff involved in the adjudication of  permit disputes (i.e. staff of the Mark O. Hatfield  School of Government). David Kottkamp moved to approve the request for rulemaking; Bobbie Conner seconded. The motion passed unanimously.

10.	Request for Rulemaking: Rules for Historic Cemetery Grants 
(Roger Roper)
The OPRD 03-05 approved budget contained a new grants program for historic cemeteries. Over several meetings, the Cemetery Commission discussed the preferred outline for the program, and later approved over 60 grants that were chosen by the grants review committee earlier this year. The Director requested that the Commission’s preferred program plan be memorialized in administrative rules: thus this request for Commission approval to begin the rulemaking process.  
Bobbie Conner questioned whether the grant criteria included specific mention of noxious weed control in historic cemeteries, which typically are under-managed. She suggested that noxious weed control be an allowable use of grant funds. Bobbie Conner moved to approve the request; Sue Musser seconded. The motion passed unanimously.

11.	Contract Approval (Tim Wood)
a) Fort Stevens Restroom Rehab
The work to be completed under this contract is: improve three (3)
restroom/shower buildings. Work includes conversion of laundry 
rooms into ADA accessible restroom/shower rooms, upgrading lighting for 
energy conservation, and installation of new roofs. Only one bid was received
(Larry Helligso Construction of Astoria, Oregon, in the amount of 
$159,905.00) and it exceeded the current project budget.  Staff  have been 
working with Department of Administrative Services Contracts Section 
to determine if the project scope can be reduced to within the project budget 
and award made under this solicitation.  Staff recommended that the 
Commission approve award of this contract with reduced scope up to the 
amount of the project budget ($80,000), contingent upon DAS approval. 
 In response to questioning by David Kottkamp, Wood said it is 
unusual to receive only one bid for this type of project. He also believes the 
project was under-budgeted. The contractor, Larry Helligso Construction of 
Astoria, has worked with OPRD previously. Wood said funding is not 
available to complete the project all at once; it is necessary to separate the
 project into two phases. In phase one, two restrooms would be completed 
and would be  available for visitation next summer. Next year the project 
      would be completed. In response to Bobbie Conner’s query about 
the possibility of Federal funding, Wood said probably none would be 
available. Sue Musser moved to approve the contract; Bill Gregory  
seconded. The motion passed unanimously. 
b) Oswald West Paving
The work to be completed under this contract includes: overlay and re-stripe 
the existing parking lot and install concrete walkways. The most
responsive, responsible bidder was Clean Sweep Maintenance of Seaside,
Oregon. Staff recommended award of the contract to Clean Sweep 
Maintenance in the amount of $75,948.00.
Bobbie Conner moved to approve the contract; Sue Musser seconded. The motion passed unanimously.
c) Maud Williamson Paving
Work to be completed under this contract includes: construct a new entrance
road and overlay existing roads and parking lots. The most responsive, 
responsible bidder was D&D Paving of Salem, Oregon. Staff recommended 
award of the contract to D&D Paving in the amount of $65,390.00.
Bill Gregory moved to approve the contract; Nik Blosser seconded. The motion passed unanimously. 

d) Champoeg Visitor Center
Work to be completed under this contract: develop interpretive theme concepts and design new exhibits.  Project involves research writing, developing exhibit concepts and development of final production specifications for 1,500 square foot exhibit space. The most responsive, responsible bidder was Formations, Inc. Staff recommended award of the contract to Formations, Inc. in the amount of $97,650.00.
In response to questioning from Bobbie Conner, Tim Wood assured the Commission that consultation with tribes is included in the creative process and completion of this project. Bobbie Conner moved to approve the contract; Dave Kottkamp seconded. The motion passed unanimously. 
	      e) Graphic Design, Creative and Production Services ATA
Work to be completed under this contract: design and pre-press services for publications, advertising, exhibits and specialty signage development. There is no guaranteed work under these Agreements to Agree; assignments will be issued by Work Orders.  The total Not to Exceed amount of the agreements is $250,000.00 over five years. The terms for the agreements are one year with the option to extend up to 4 (one year options). The proposers in ranking order are:	 In House Graphics, Salem; DHX Advertising, Portland; Natural Light, 
Ashland; Whitten Design, Bend; Coates & Kokes, Portland; Opus Creative, Inc., Portland; Inside Source, Portland; Sonata Inc., Bend; and Beach Cabin Advertising Agency, Gleneden Beach. Staff recommended the Commission approve award of the Agreements to Agree to the top five proposers as allowed by the solication. 
Sue Musser moved to approve the agreement;Bill Gregory seconded. The motion passed unanimously.

12.	Approval of Local Grants (Kyleen Stone)
a) Large Grant Awards 2004
The lottery-funded Local Government Grants program, which was modeled after the federal Land and Water Conservation Fund, helps local government agencies finance projects to acquire, develop and rehabilitate community parks and public outdoor recreation areas and facilities The program provides funding assistance for up to 50% of the cost of most projects (up to 60% for cities and districts with populations under 5,000 and counties of less than 30,000).  Funded projects must be maintained for park and recreation purposes in perpetuity. Scoring of applications is based on several factors including: 1) local recreation needs and planning; 2) partnership; 3) public support; 4) timeliness; 5) sustainability; 6) source of funding; and 
7) committee member evaluation. At its August 10-11, 2004, meeting the Local Government Advisory Committee recommended the following large ($50,000 though $500,000) grant awards: 1) Keizer Rapids Regional Community Park (City of Keizer and Marion County), $500,000; 2) Fir Grove Rehab Project, Phase 2 (City of Roseburg), $150,000; 3) 32nd Street Community Park, Phase 2 (Willamalane Park and Recreation District), $500,000; 4) Hillsboro Outdoor Pool Rehabilitation (City of Hillsboro), $189,000; 5) East Fork Amazon Headwaters Acquisition (City of Eugene), $300,000; 6) Deschutes River Trail—South Canyon Bridge (Bend Metro Park and Recreation District), $78,348; 7) Community Park Skatepark (City of Central Point), $152, 481; and 8) Arcadia Park Skateboard Park (City of Toledo), $133,666. Staff recommended award of the large grants.
In response to questioning by Bobbie Conner, Kyleen Stone explained that the full amount requested in a grant application is awarded—given the availability of funds, and regardless of the number of points received by an application during the scoring. Stone said that the names of members of the Local Government Advisory  Committe are listed on the OPRD website. Bobbie Conner moved to approve the grant awards; Bill Gregory seconded. The motion passed unanimously.
b) Small Grant Awards 2004
OAR 736-006-0115 (1) sets aside 10 percent of Local Government Grants program funds for small grants (less than $50,000).  For 2004, $326,202 is available for small grants.  Small grants requests were scored and prioritized for funding by a three-member committee appointed by the Director. Grant application scores are based on 1) local recreation needs and planning; 2) partnership; 3) public support; 4) timeliness; 5) sustainability; 6) source of funding; and 7) committee member evaluation. The committee recommended award of the following small grants: 1) Ione City Park Improvements (City of Ione), $50,000; 2) Miller Park Enhancements (City of Florence), $49,550; 
3) Maple Street Park Sports Field Rehabilitation (City of Canby), $50,000; 
4) Marys River Natural Park Boardwalk (City of Corvallis), $40,000; 
5) Seneca City Park Restroom (City of Seneca), $28,443; 6) Cullaby Lake Park Wetlands Trail (Clatsop County), $18,353; and 7) Kiwanis Pocket Park 
Development (North Wasco Parks and Recreation District), $34,102; 3rd Street Waterfront Park Development (City of Warrenton), $36,000; and Fruitdale Park Soccer Field (City of Grants Pass), $19,754.
David Kottkamp moved to approve the grant awards; Bill Gregory seconded. The motion passed unanimously.

13.	Audits Update Report—Internal and External Audits (Kyleen Stone)
Kyleen Stone presented a summary of recently completed, in-progress, and pending audits of the Oregon Parks and Recreation Department: 
Completed Audits included:	
•	Honeyman investigation:  Staff was alerted to potential contract activities that occurred outside the scope of Department policies and procedures in Spring 2004.  An internal investigation was conducted and found that there were some irregularities when a contractor was secured to clear a trail.  Financial Services staff recently completed specialized trainings focused at preventing this sort of problem in the future.  Additionally, procedures have been tightened to ensure that OPRD forest management objectives and standards are followed. 
Stone added that the employee involved had thought he had found a workable approach for managing the project because the total cost of the project was within limits. That employee is no longer with the Department. 
•	Capital Assets:  Secretary of State auditors reviewed OPRD’s capital asset accounting in July 2003 and made 12 recommendations for improvement.  Several of the recommendations were in response to changes made by the Government Accounting Standards Board (GASB) in reporting infrastructure assets.  One year later, we reported our progress to the Secretary of State’s office.  We have completed work on six of the recommendations and are near completion on three more.  Three of the recommendations require more time to implement and will be completed by 2005.
•	Metered Equipment:  The Secretary of State’s Office issued a draft report to OPRD on August 13, 2004.  The audit looked across six agencies to improve efficiencies in managing metered equipment (use measured in hours rather than miles).  The draft report recommends establishment of a working group of fleet managers to develop minimum use standards, intergovernmental equipment sharing, improved information management, and lease/rental alternatives.  The draft report also identifies significant savings that could be achieved if the recommendations are implemented.  OPRD is currently working on a response to the draft report.  
Audits in Process include: 
•	Parks and Natural Resources Fund:  The Oregon Constitution requires an audit of activities funded with Lottery proceeds resulting from Ballot Measure 66.  This is a biennial audit performed by the Secretary of State and includes multiple state agencies.  Fieldwork is completed on OPRD’s portion of the audit, but results have not yet been shared.  Historically, these audits have not resulted in significant reportable conditions for OPRD.
•	Financial Statements:  Due to recent changes by the Government Accounting Standards Board (GASB), OPRD has accounts that are material to the State’s financial statements (which are certified annually by the Secretary of State’s Office) and require an audit to ensure that the statements fairly reflect the state’s financial position.  OPRD accountants are working to close the books and prepare the disclosure statements by August 31, 2004.  Auditors are doing preliminary fieldwork and will begin the audit of selected OPRD accounts for the year ended June 30, 2004, after August 31. 
The financial statements prepared for the fiscal year ended June 30, 2002, were OPRD’s first to receive this type of audit.  There were three reportable conditions for that period resulting, primarily, from the conversion between TEAMS to the Financial Management System (FMS).  This year, we expect few issues because this is our first full year of financial data using FMS to interface to the Statewide Financial Management Application.
•	Land and Water Conservation Fund:  A review to evaluate the procedures being used to manage the program at the state level and identify any problem areas that might need attention and to further enhance effective working relationships and communication. The last review was completed in 1993.
Pending Audit:
•	Change of Director:  Whenever there is a significant management personnel change, audits should be performed.  As a matter of course, the Secretary of State conducts audits upon change of director.  This audit has not yet been scheduled.
No Commission Action was requested.

14.	Commission Discussion  
•	The Commissioners agreed that regular discussion dedicated to “signature events” and current issues, including timelines and updates, would be beneficial.     
•	The closing date for applications for the position of Director is October 1, 2004. A Commission working session will be scheduled soon after the closing date to review applications, followed by two rounds of interviews. The timeline will be finalized after all applications have been received and reviewed. John Blackwell  has invited the Governor’s office to offer its insights regarding the recruitment.   
•	In response to Nik Blosser’s query about the proposed ATV park near  Unity Lake (referenced in the comment by citizen Carl R. Kostol), Kyleen Stone said the All-Terrain Vehicle Account Allocation Committee will be meeting September 16 and 17, 2004, and may hear a proposal to acquire property in Baker County for off-highway vehicle riding areas. Visitor John Edmundson commented that ATV enthusiasts in Morrow County are excited about their project.  Edmundson plans to follow the issue closely.
•	Bobbie Conner expressed regret that the Commission will not be touring Catherine Creek. She said the completed work on signage at the site is excellent, and that similar signage would be an asset at Hilgard. 
•	John Blackwell thanked Bobbie Conner for the tour and dinner at Tamastslikt Cultural Institute prior to the September 2 Commission Meeting. 
•	John Blackwell adjourned the meeting.

The meeting adjourned at 9:52 AM

Respectfully Submitted,
Jo Bell, Commission Assistant