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05/08/2006 - Minutes x � � 5 City of Tigard, Oregon Allow Budget Comn-iittee Meeting Minutes May S,2006 Members Present: Craig Dirksen,Mark Haldeman, Sally Harding,Kevin Luby, Rick Parker,Katie Schwab,Sydney Sherwood,Jason Snider,Nick Wilson, and Susan Yesilada. Members Absent: Tom Woodruff. Visitors:Pat Biggs,Gretchen Buehner,Rich Carlson,Daniel Ness,Tim Ness, Eric Weiring,John Rawley,Laura Hansen,Tanner Elllerson,Matt Minzghar,Trever Ellernson,Margaret Ellenson,Sean Beveal, Connie Ramackus, Tyler Nelson, Chip Terhune,Dana Terhune, Garrett Rawley, Scott Bankhead,Tanner Green,Porter Green,Mark Merklin, Steven Merklin, Tonia Bankhead,Sammy Carlson,Simon Dumont,Dan Richards,Shannon Richards, and Marco Cabanillas. Staff Present: Tom Coffee, Carissa Collins,Maureen Denny, Gus Duenas, Tom Imdieke, Gary Lampella, Craig Prosser, Bob Sesnon,and Michelle Wareing. Approval of Minutes: Sydney Sherwood moved for approval of the minutes of May 1,2006. Nick Wilson seconded the motion. The minutes were approved.MSP As agreed at the last meeting,Public Comment was held for supporters of the Skate Park Several visitors spoke for approximately 20 minutes explaining what they have accomplished. They urged the Budget Committee to continue to provide financial support for the Skate Park Community Development: Tom Coffee presented the budget for Community Development. He is the Interim Director for Community Development and has been with the City since September 2005. The budget is up 2.2% overall. Administration is up by 5%, Current Planning increased by 1.5%, Long Range Planning has decreased by 6%,and Building Inspection increased by 5.2%. The Building Inspection budget includes two new positions which have been eliminated due to the terminated agreement with Washington County to provide urban services. With the two cancelled positions,the budget is actually down overall by 1%. There is a technical adjustment of$110,035 to remove the two new positions from the budget. There is a$10,000 carryover requested for contracted services in the Building Division for software and computer work that will not be spent in this fiscal year. There is a new position for an Administrative Specialist position in Long Range Planning. Long Range Planning has not had administrative clerical support and planners are doing that work With the Comprehensive Plan update and amount of public outreach the City wants to do,there is a lot of clerical work Jason Snider asked how much revenue will decrease as a result of the cancelled agreement with Washington County. Tom Imdieke stated the impact would be a reduction of approximately $300,000 per year. Tom Coffee stated the agreement with the County to terminate services on Building Inspections takes place on June 1,2006. The City has committed to the county that any application that is submitted by that date will be plan reviewed and inspected in the field through the Allow final inspection.This can take a year or longer. The City will be carrying over some of the work and some of the revenue to cover these costs. With the contract being terminated on June 1,2006 for 1 � 1 new inspections,there will be up to 227 active cases that will need to be finished by the Building Inspection Division. Any remaining revenues in the Urban Services Fund would have to be dedicated to complete these inspections. Craig Prosser said the City is still in discussions with the County on the details of the transition. There are two funds tracking the revenues and expenses associated with the urban services area,Urban Services Fund and Urban Services TIF. Once the transition is complete,the fund balance for these funds will be returned to the County. Nick Wilson asked when fees are updated. Michelle Wareing stated the fee schedule will be presented to Council on June 13`h. Nick Wilson asked if it was possible to temporarily remove the fee for individual residents to annex into the City. He felt the fees could be a barrier for those who would like to annex. The current cost for an individual residence to annex is $2,337. Since it is the City's long standing policy to encourage people to join the City,he feels the fee should be reviewed. Sydney Sherwood asked if the budget should be adjusted to reflect the removal of the fee. Craig Prosser stated if the Council and the Budget Committee are interested,the Master Fee resolution could be adopted in June,removing the fee with an effective date of January 1,2007 for a specified period of time. Engineering: Tom Imdieke stated there was an error in the proposed budget document. On page 181,the proposed budget should reflect an additional$70,000 in the Vehicle line item for replacement of three vehicles. This is a technical adjustment. Gus Duenas presented the Engineering and Street Lights budgets. There are 15.5 positions in Engineering,there are no new positions this year. The overall increase in the budget is 9%. Of this increase, 7.5% are for two items. The Hansen payment management module was purchased, however it was not able to be deployed due to issues with servers and a needed power supply upgrade to the Niche. The road system re-rating also needs to be completed.. Gus Duenas is recommending hiring a consultant for$30,000. This would allow the rating to be completed in three weeks rather than trying to use Public Works staff and paying over-time. The rating needs to be completed this summer so the Street Maintenance Fee can be reevaluated. The other major increase is the replacement of the three older vehicles. Gus Duenas is also asking for a reclassification of an Engineering Tech II position to a Senior Engineering Tech. The Community Investment Program has a heavyworkload. The Engineering Department will work with companies to provide additional staff as part of the contract. Once the project is over, there will be no need for additional staff. Sally Harding asked about the Travel/Training expenses. The training is necessary for new staff. The AutoCAD training has decreased,however,the size of the staff has increased. Training has been held to a minimum in past years and the Department is trying to catch up. Kevin Luby asked what type of vehicles were being purchased for replacements. Gus Duenas stated the vehicles were Astro vans that allowed inspectors to cant'equipment in the back. Kevin Luby also asked if Engineering had a performance audit done. His concern was the ratio of managers to staff. Mayor Dirksen asked if the manager roles were supervisory or if they actively participated in operations. Gus Duenas stated they are working managers,do in-house design,and monitor contracts,in addition to supervising staff. *40 2 a The Budget Committee had a discussion on fuel efficient vehicles. Mayor Dirksen stated that the Aftw types of vehicles any department in the City uses should be a policy issue for the Council. Craig Prosser stated the City is in the process of an energy review. The review would include heating, lighting, and fuel. The results of the review will be presented to Council which may be the time to talk about heating,lighting, and vehicles. Jason Snider asked if the City would be able to purchase electricity at bulk rates. Craig Prosser did not think the City was large enough but would double check Katie Schwab mentioned solar power and wind power could be used on a small basis. The budget for Street Lights and Signals has increased by 3% for increase in energy and maintenance costs. The budget is at the minimum level. PGE indicated that it would seek increases in power rates up to 24%. Nick Wilson asked if the street lights were metered.Most of the street lights are not metered. He suggested this may be a good place to look at for auditing. Community Investment Program: Gus Duenas presented the budget for the Community Investment Program(formerly known as the Capital Improvement Program). The Community Investment Program(CIP) is reviewed and approved each year by the City Council. The CIP for FY 2006-07 was developed through a comprehensive process involving opportunities for public input, as well as Planning Commission and City Council input,prior to submission to the Budget Committee. Highlights of the last year include completing the signalization of the Hall Blvd/Wall Street intersection;completion of two sewer reimbursement district projects, and the participation in the Walnut Street improvement project between 1215`Avenue to 135`h Avenue. Major factors affecting the budget are the limited TIF funds for major street expansion projects,the decline of the Sanitary Sewer Fund,and the limits of the Stormwater Fund. The Street Maintenance Fund continues to provide a stable source of revenue for street maintenance. In the last year,the program has made significant progress in moving ahead with the catalyst projects for the Tigard downtown. The streetscape design project is well underway and should be completed by August. The Burnham Street conceptual design has been established and will be moving ahead with design work and right-of-way acquisition in the next fiscal year. Some major projects coming up in FY 2006-07 are to initiate and complete the 99W corridor improvement and management study,flesh out the recommendations of the Greenburg Road alternatives study and develop a plan for implementation, and the extension of Wall Street to provide joint access to the Library and Fanno Pointe Condos. There are signalization projects for 108`h and Durham and Dartmouth and72nd. The program addresses growth,park land acquisition, and consolidating the Public Works staff in the Water Building. Sydney Sherwood stated she heard the Senior Center was going for funds to build a new center and asked if it made sense to put the money into seismic upgrades. Gus Duenas thought the application was for renovations but if they did build a new center the money would not be spent on the upgrades. Mark Haldeman asked for clarification on the 99W corridor study. The study,funded by a federal grant, is to look at corridor redevelopment. The study will evaluate ways to draw traffic off of 99W through alternative routes or land use changes. The City has partnered with ODOT for the study. The portion of the study funded by the grant is $176,000 with the City contributing$24,000. 3 There may be an additional$50,000 available from ODOT if the land use portion requires more work. Kevin Luby also asked about the cost of consolidating Public Works into the Water Building. They are currently doing a study on how to efficiently use the space. The intent is to eventually vacate some of the houses being used on Ash Street. The 3 to 4 acres that would be available after vacating the houses is Fanno Creek frontage. This area has been identified in the Downtown Improvement Plan for combination use as public open space and/or could also be sold for private development. Craig Prosser stated the $630,000 included a new HVAC for the building as well as seismic upgrades. The Water Building is the City's Emergency Operations Center(EOO and he has concerns if there was a major earthquake whether the EOC could be operational. Nick Wilson asked if the City had clarified ownership of the Water Building facilities. Craig Prosser's understanding is for the pipes in the ground that supply the water belongs to the jurisdiction where the pipes are located. For common assets,such as the building, it's a percentage ownership determined according to the percent of customers that are within the jurisdiction. Tigard owns the majority of the building. King City,Durham, and the Water District also own a percentage also. In the past,any improvements were made to the building were not reimbursed by the other jurisdictions. The revenues are fully accounted for in the Water Fund. The other jurisdictions receive a payment of 1% of the water sales in their jurisdiction. It was suggested the City buy the other jurisdictions out and then lease back their portion to them. Mayor Dirksen stated the City should clarify the current agreements. Kevin Luby asked why the Library parking lot extension would cost $180,000 and if it was worth the money.Rick Parker asked if the Library Projects—Houghton/Root Donations project could be used for Parking Lot Expansion. The terms of the bequest will not allow funds to be used for the parking lot expansion. The funds are dedicated to the Library and will be used for things like public art and making other similar improvements. Gus Duenas stated when the Library was built,it called for 118 parking spaces, currently there are 105. With the Wall Street realignment,the main entrance to the Library will be relocated which will allow expansion of the parking lot. This will bring it up to the minimum required by code. The current entrance was intended to be an interim entrance. The permanent location will be lined up with the book return. Some items on next week's agenda were moved forward to this meeting. Finance: Bob Sesnon presented the budget for Finance. The Department's budget is $2.1 million and has 24.1 FTE. The Department consists of Finance Administration,Financial Operations, Office Services,and Municipal Court. The majority of the Department is funded by the Central Services Fund. The exception is Municipal Court,which is funded by the General Fund. The Municipal Court has a budget of$236,000 which is about half of the revenues from fines. The Judge is contracted and the cost is reflected in Professional Services.Kevin Luby asked for a breakdown of hours for Judge and if the City has done a comparison for costs with other cities. The judge retainer is approximately$40,000 per year. Tom Imdieke will verify the information with the Court Administrator and bring additional information to the next budget meeting. 4 r Katie Schwab asked about the Travel/Training costs. The Court Administrator attends training to %W remain current with the laws,customer service training,and software training. Some training is included for the Judge. Debt Service: Michelle Wareing presented the Debt Service budget. The City currently has three types of debt outstanding: General Obligation Bonds for Library Bancroft bonds for two Local Improvement Districts—69`h Ave &Dartmouth Loan from the Oregon Economic Community Development Department for Cook Park Expansion GO Bonds are paid with property taxes. Each year the City levies a dollar amount. In FY 06-07 this will be $928,065. The County Tax Assessor then turns this dollar amount into a tax rate per thousand that is paid by property owners in the City of Tigard. As part of the Budget Approval process,the Budget Committee will have to levy this dollar amount along with the City's permanent tax rate. The City has two Bancroft Bonds outstanding. 69`h Bond was issued in June 2002. The Dartmouth 2003 Bond was issued in December 2003. This bond was issued for assessments that had been in litigation. In September 2003,the Court ruled in favor of the City. In FY 05-06, one of the property owners paid-off his share of an assessment on one property and paid-off in full the assessment on one of his other properties. In FY 06-07,the budget includes $1 million for additional bond calls. The majority of this will be used to call a large portion of the Dartmouth 2003 bond in November 2007. OECDD loan is repaid with Park SDCs. It is anticipated that if the Tigard Triangle LID# 1 creation is approved by Council in FY 06-07,the City will sell a bond anticipation note in the amount of$1,750,000. Once the construction is completed and all costs are assessed to the property owners,the City will issue a Bancroft Bond to payoff the BAN. This Bancroft Bond will then be repaid by the payments received by assessed property owners. Community Events and Social Services: The Social Services subcommittee met in March to discuss the social services grant applications and make a recommendation of the proposed amount. The City Council reviewed the Community Events applications and made their recommendation for the proposed amount. Social Services grants totaled$138,692 and the Community Events totaled$48,400. By resolution of City Council,the Broadway Rose,Festival of Balloons,and Fourth of July events, are guaranteed a certain amount each year. There are three set-asides in Social Services which are not included in the allocated amount of one half of one percent of the previous year's operating expenditures. Sally Harding asked if Family Fest could be moved from Council's budget to the Community Events budget. Craig Prosser stated it could be moved very easily. Mayor Dirksen stated that if the City is 5 going to continue to have the Family Fest, it should come out of the Social Services/Community Events budget. Sydney Sherwood voiced her concern about the validity of the information provided by the Social Services applicants. She is concerned that Neighborshare is not providing the amount and types of services listed on their application. Staff will verify the information for Neighborshare and Loaves & Fishes and report back to the Budget Committee. Sydney Sherwood suggested the application process be reviewed to ensure the funds are given to appropriate agencies. Craig Prosser suggested the application process would be a topic to be discussed at a quarterly Budget Committee meeting. Public Comment Gretchen Buehner spoke on three topics. The first referred back to the discussion about street lights. She mentioned the street lights on Walnut between 121" and 128`h have not worked for over a year. The next topic concerned the inconsistencies in the Intergovernmental Water Board contract. She urged the City to review the contract and take action. Lastly,she expressed her concern about the staffing in the Current Planning Division. Gretchen Buehner noted the high turnover for Planners and asked the City to review the pay rate offered for these positions. Tom Coffee stated the results from the recruitment process did not provide the quantity or quality of candidates he expected. The City will continue to review the compensation for these positions. The Budget Committee was recessed at 9:55 PM until May 15,2006. 6