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05/23/1997 - Packet a ' t� City of Tigard, Oregon Budget Committee Meeting Friday, May 23, 1997 6:30 Agenda 1. Call to Order 2. Approve Minutes from May 19, 1997 meeting 3. Budget Adjustment Proposals • Police • Library • Network Services • Other 4. Motion to approve tax levies 5. Motion to approve proposed budget as amended Adjournment City of Tigard, Oregon `wo 1997/98 Proposed Budget Summary of Proposed Adjustments Operating Budget: As proposed $18,632,059 Police - July 1 hire of replacements 42,300 Police- Addition of two new officer positions 119,484 Police - correction 69,276 Library - Addition of employee hours 25,376 Library - Compact Shelving 4,000 Network Services - Technician position 54,500 Social Services - Increase request granted 50 Street Lighting -Wooden pole replacement carryover 42,000 Operating Budget as adjusted $18,989,045 Other adjustments: General Fund - Increase contingency 200,000 Increase general CIP 166,800 Increase in property tax revenue 831,000 Urban Services Fund -Revenue 13,950 Water Quality/Quantity-Revenue 102,980 Capital Improvements 102,980 State Gas Tax beginning fund balance 42,000 City of Tigard, Oregon Budget Committee Meeting Minutes May 19, 1997 Members Present: George Burgess, Craig Dirksen, Gene Farnstrom, Paul Hunt, Brian Moore, Jim Nicoli, Joyce Patton, Bob Rohlf and Ken Scheckla. Members Absent: Max Williams Staff Present: Wayne Lowry, Bill Monahan, and Michelle Wareing. Guests Present: Gus Duenas, City Engineer; Jim Hendryx, Community Development Director; and Ed Wegner, Public Works Director. Call to Order: The meeting was called to order at 6:35pm by Joyce Patton, Committee Chair. The record shows that all Committee members except Max Williams were present. Minutes: The May 12, 1997 minutes were approved as written. MSP Joyce Patton stated that five departments from the City would be presenting their budgets and goals for FY 1997/98. After presentations, the Committee would discuss how it wanted to handle deliberations. Public Works Budget: Ed Wegner, Public Works Director,presented his department's budget and goals. Ed stated that his department is responsible for the operation and maintenance of the City's infrastructures. Sanitary sewer and storm drain budget is supported by user fees. Only, the Parks budget is dependent upon the General Fund. Street maintenance budget is funded by State and County gas taxes. Water budget is funded through revenues generated by the sale of water to residential and commercial customers. Building and vehicle maintenance budget is supported by several funds from different departments. Ed stated that on January 1, 1994, the City of Tigard took over the management and operation of the Tigard Water Service Area. This Area includes the Cities of Tigard, Durham and King City and the unincorporated Washington County areas. The Water budget is the only department that goes outside the Tigard area to collect revenues. The same service is provided to all areas of the Tigard Water District since collected fees pay for the service. Ed gave an overview of what the Public Works department manages and/or operates. Public Works maintains 214 miles of water lines, 13 reservoir sites, 4 wells, 1,600 fire hydrants, 11 parks with 120 acres, 125 acres of greenspace, 7.5 miles of off-street bike or pedestrian paths, 5 retention ponds with 8 more to be added in the next three years, 123 street miles, 54 miles of right of ways, almost 3,000 catch basins and over 400,000 linear feet of sewer lines. Last year, 1 the Department maintained and/or installed 700 street signs and traffic signals. All of this is maintained and operated by a staff of 46 people. Ed stated that each division has its own budget and staff. Ed noted that some staff salary, such as the Utility Manager, is allocated to several budgets. The purpose of this is to save costs by merging jobs and responsibilities. Ed stated that since he discussed Parks at the last meeting, he would only cover the other divisions of the Public Works budget. The Public Works Administration budget is basically a maintenance budget. However, it does include the implementation of the One Call System for water, sanitary and storm water locates. State law mandates that this program be enacted on July 1, 1997. The Hansen maintenance software package that was purchased in 1996/97 will be implemented in 1997/98. The Administration is also involved in the Regional Consortium which discusses future water issues and supplies. The Administration budget also includes the Emergency Management Program for the City. Ed reported that the Sanitary Sewer budget includes the One Call program. Several projects will be completed in 1997/98. A sanitary sewer,manhole and line grouting program will be implemented. The second phase of the replacement of hand-held radios will be completed. Software line item includes the implementation and maintenance of the Hansen software. Ed stated that the Storm Water budget also includes a portion of the cost for the One Call program. Professional and Contract Services' cost has been increased to pay for the cleaning and reshaping of two retention ponds. The Street maintenance budget includes a new position which was split from Parks. Ed stated that contract flagging costs are included in the Street and Water budgets. In the past, the City had trained and used its own staff for flagging. Now,projects require too many people to be cost effective. Ed noted that PGE, GTE and ODOT all use flagging companies. Ken Scheckla asked Ed if Public Works was planning on using the flagging company that is currently working the Hall Boulevard project? Ken noted that he felt that company's employees were not well-trained. Ed responded that the flagging company on the Hall project was just one of many and that Public Works would not necessarily being using that company. Ken Scheckla recommended that before hiring a flagging company that Public Works check the flagging company's performance. Bill Monahan responded that he and Ed had already been discussing the flagging operations. Ed stated that in addition to the above mentioned programs, Public Works will continue its routine crack sealing patching and improved street marking programs. Ed noted that in 1996/97, the State allowed cities to "piggy-back" on ODOT bids for materials and supplies. This has saved the City money and this practice will continue in 1997/98. There have been many advances in street maintenance, so training expenses have been increased to train staff to work smarter and more efficiently. 2 Ed stated that the Fleet Maintenance division is responsible for 117 pieces of rolling stock. Rolling stock is any equipment that is large enough to drive on the streets. The division also maintains 75 pieces of non-rolling stock equipment s►b A/as,�. The Fleet Maintenance budget includes the upkeep to the All Data System that was installed in 1996/97. The Operation Equipment expense includes the purchase of a Table Lift. A Table Lift is a hydraulic workbench that lifts heavy equipment up to a working level. It is ergonomically correct and will help reduce the number of back injuries in this department. The Building Maintenance budget is a maintenance budget. It encompasses all the costs to keep the buildings running,but no remodels or expansion. Several capital projects were deleted from the budget. However, it does include the replacing of the sub-flooring at the Senior Center. The floor is beginning to rot due to water damage and must be replaced. The roof on the Niche building will be replaced with funds received from the 1996 windstorm. Ed noted that he is reviewing a HVAC preventive maintenance contract. The HVAC systems at the City facilities will be serviced and inspected on a quarterly, semi-annually or annual basis. Currently, there are some problems at City Hall in controlling heating and air conditioning failures. Ed stated that the Water budget includes the exchange of 4 temporary positions for one full-time position. There is a slight cost difference,but it will be made up in the work done. The new position will be responsible for cleaning around water meters and completing work orders. In the past, full-time staff cleaned the meters in the winter which was the Water division's slow season. Now, Water staff is busy year round. Ed noted that there is on average one staff member off each week because of vacation or comp time in the winter months. Ken Scheckla asked what the difference in salary cost was for the one full-time position versus the four temporary positions? Wayne Lowry responded about $10,000 to $12,000 because of wage differences and benefits. Ken Scheckla asked if the budget still included seasonal workers in addition to the new full-time position? Ed responded that the budget included two seasonal workers,but that they will be shared with Parks. Ed stated that money was budgeted to clean the reservoir sites. It was proposed that divers be used to clean instead of draining the tanks. Using divers will save time, money and water. Ed noted that other cities have used divers and have saved about 70%in cleaning costs. Ed reported that the Water budget includes $16,000 for the water conservation program. The money will be used to print brochures and provide presentations on water conservation to schools. A portion of the money also goes to pay for regional Public Service announcements in the summer months. Ed stated that the biggest capital project for 1997/98 is the construction of the Menlor Reservoir. This reservoir will contain 3.5 million gallons of water. The Capital budget also includes money to build an asphalt curb around High Tor reservoir. There have been problems with the High Tor 3 reservoir draining into citizens property instead of catch basins and storm drains. The curb will allow for proper drainage. Ed stated that $50,000 has been allocated in the current budget to purchase emergency generators. Ed recommended to the Committee that a generator not be purchased and that the item be removed from the budget. Ed stated that he had intended to purchase military surplus generators, but could not find any that met certain performance criteria. It would cost$40,000 to purchase a new generator that was large enough to support the High Tor pump station. Ed stated that$40,000 was too much for one generator that might never be used. Ed noted that if a military surplus generator becomes available, he will go to Council and request special funding for the purchase. Ed stated that a military surplus generator can cost from $2,000 to $8,000. Ed stated the City Hall has emergency lighting only. The Police Department and the Tigard Water Building both have full emergency power. During a power outage or natural disaster, these two buildings would be fully operational with computers, lights and phones. Ed concluded his budget presentation. Paul Hunt asked how the City and Unified Sewerage Agency(USA) split sewer revenues and who was responsible for the sewer lines? Ed responded that the City is responsible for maintaining any lines 18 inches or smaller. USA is responsible for all lines large than 18 inches and the processing of the sewage. The City receives about 30% of the sewer revenues. The storm system works the same way. Paul Hunt asked how do the divers clean the tanks? Do they use a vacuum? Ed responded that he has not seen how the divers actually clean the tanks. Ed stated that four of his staff members attended a class on it and there is a video on the process. Ed assured the Committee that the process does work. Paul Hunt asked what the One Call System was? Ed responded that it is the same as the "Before you Dig"number. Basically, a person calls one number to find out where all utility locates are before digging on their property or in right-of-ways. Brian Moore noted that on page 45 of the budget, Land and Improvements line item had $14,500 budgeted. What is that money to be used for? Ed responded that the money will be used to clean the two retention ponds, he discussed earlier. Bob Rohlf asked why each division showed equipment purchases? Ed responded that each division had small equipment purchases to make in 1997/98, but there were no large items to be purchased. Joyce Patton noted that the break-down of equipment purchases for Public Works is located on pages 203 and 204. 4 Ed stated that Public Works would be purchasing two new vehicles in 1997/98. One is a utility vehicle for the Water division and the other is a meter reading van to replace a 1970 model. Bob Rohlf asked if Public Works had looked into contracting out lawn mowing services? Would it be cheaper to hire a company to mow instead of paying staff and purchasing equipment? Ed responded that he and Wayne Lowry had discussed contracting out meter reading. However, contracting out lawn mowing would cost about the same as doing it in-house. Ed stated that he has been reviewing the mowing of right-of-ways. If the Tigard mower has to be replaced at the cost of$35,000, it might be cheaper to contract out. Joyce Patton noted that in the Property Management section(page 102), the program highlights recommended the installation of Access Control Management System and installation of security gate at Public Works facility. Joyce stated that she could not find numbers to correlate with the recommendations. She asked if money had been allocated in the budget to support these recommendations? Ed responded that there are revenues in the 1996/97 budget and he hopes the Access System and gate will be installed in this fiscal year(1996/97). Bill Monahan stated that the security gate is part of an overall plan for preventing workplace violence. Bill stated that since the money was in the 1996/97 revenues, the gate will be installed now. Gene Farnstrom asked if the meter replacement program was going to be completed in 1997/98? Ed responded that the meters would be replaced in 1997/98. Ed stated that all meters 1 1/2 inches or larger will be replaced. Money has been allocated in the budget to pay a contractor to replace the meters. It is anticipated that the new meters will pay for themselves in one year, since they will read water usage more accurately. Ed noted that staff will no longer have to go into vaults to read meters which will save money. OSHA requires that two staff members be present when certain vault sizes are accessed. Ed reported that it should take the hired contractor 90 to 120 days to replace all the meters. Jim Nicoli asked how many meters were to be replaced, 200 to 300? Ed responded no, not that many. Jim asked if the meter head was going to be replaced or just the box? Ed responded that the meter head will be completely replaced. Paul Hunt expressed his concern about the lack of security at City Hall. Paul stated that hundreds of computers and equipment was housed in the building and that many people had access to the building. Paul asked if any studies had been done on securing the building? Bill Monahan responded that security at City Hall has been the subject of a workplace violence study. Bill stated that the City is looking at installing different doors in the building. The exterior door to Red Rock Creek Conference Room has been replaced with an automatic locking panic door. Public Works is reviewing a card entry system for all the buildings. The door by the Design Services Technicians counter will be locked at all times. The City is looking at putting some type of glass divider at the counter. It is hard to reconcile workplace violence precautions and customer service needs. Employees might be required to wear an identification badge. 5 The central lobby in City Hall is a main issue. On weekends, the public has access to both the Police lobby and central lobby. Anyone can access Town Hall and stay there. Police personnel does not check the area. New locks will be installed on Town Hall doors. When the renovation of the Police Department happens, the Police lobby will be reconfigured to provide more supervision of the area. The City is also looking at installing surveillance cameras in the central lobby. Bill stated that several of these ideas are being implemented now and paid for with 1996/97 revenues. The rest of the recommendations have not been added to the 1997/98 budget. Bill noted that all the recommendations came out of a staff committee on workplace violence. Surveys were distributed to all City employees regarding workplace violence issues. The survey had an exceedingly high response rate. The purpose of the study is to enhance the security for employees, the public and buildings. Joyce Patton asked Wayne Lowry, what is the Special Department Expense line item that is found in all department's budget? Joyce stated that she could not determine if any projects correlated to the expense. She also noted that each department has different figure and that it varies from several hundred dollars to several thousand. Is it the same as miscellaneous expenses? Ed Wegner responded that the Special Department Expense for Public Works includes clothing allowances mandated by Union contract. Public Works pays for the cleaning of staff uniforms, the purchase of safety gear, reflective jackets and cold-winter coats for staff. Joyce Patton recommended that each department list what expenses will be paid by the Special Department Expense line item. Gene Farnstrom noted that on page 102 of the Budget, there is a recommendation to achieve a higher performance level for the janitorial services. Gene asked if there had been a problem with the service? Ed Wegner responded that City has been having problems with its janitorial service. Ed stated that the City has had two janitorial services in last two years. A third service was hired recently and that it had been doing okay until last week. It was discovered that some of the employees from the janitorial service had questionable immigration papers. Bill Monahan stated that the third service had been hired only two or three months ago. The second service was hired only last year. Bill stated that it was difficult to find a company which fully comprehended the City's expectations. Janitorial companies have a hard time keeping quality staff and providing consistent service. Brian Moore asked if it would be more cost effective to have an in-house janitorial service? Bill Monahan responded that Ed Wegner is currently looking at having an in-house janitorial service. Bill stated that it is not likely that the City could afford to have it in-house. Ken Scheckla asked if it would be more manageable and cheaper to hire four small cleaning companies to clean the four different City buildings? Ed responded that he does not have the 6 staff to administer four different contracts. However, he stated that he would look into the possibility of having more than one janitorial service provider. Community Development Budget: Jim Hendryx, Community Development Director, presented his department's budget and goals for 1997/98. Jim stated that the Community Development department is comprised of three divisions which are Long Range Planning, Current Planning and Building. Long Range Planning is responsible for planning where the City will be in twenty years or more. The Division is involved in the Metro 2040 plan, greenspace acquisition and park planning. The Division is currently working on the Cook Park expansion. Current Planning is responsible for development applications such as subdivisions. The Division reviews all requests for zone changes, conditional uses and partitions. The Building division is responsible for reviewing all plans for projects to be built in the City. The Division also does inspections of building projects to make sure that State and local code requirements are being met. Another service provided by the Community Department is the Development Service Technicians (DST's). The DST's work at the front counter in City Hall. They are responsible for providing information and answering customer questions. They issue permits and collect fees generated through the development process. Jim stated that the Community Development(CD) deals with many people each year. The Department receives 8,000 to 9,000 telephone calls and visitors a year. The Department is responsible for sending out notices to residents regarding land use decisions. Jim stated that the Building budget is completely supported by dedicated funds. The Building division has two funds to draw from which are the building and electrical funds. 1996/97 was the first year that the Division was supported completely by dedicated funds. Jim noted that actual revenues generated are greater than what was projected. The moneys generated by the funds are put into one fund to support the long term programs and build a reserve for when the building cycle turns down. Current Planning collects fees from subdivision builders which are put into the General Fund. Current Planning, Long Range Planning and a portion of Community Development Administration are supported by the General Fund. About 50% of the DST budget is paid out of the dedicated building fund. Jim reported that there are several increases to the 1997/98 Budget over the current year. Jim stated that a code enforcement position had been returned to CD. For the last two years, code enforcement had been part of the Community Service Officer's duties. Now, the CD code enforcement position will handle only code violations. 7 Jim stated that the permit tracking software will be upgraded to a windows version. The Company that provides software support will no longer support the current DOS based system. Also, all CD computers must be upgraded to a Pentium to handle the windows software. Jim stated that CD has a tree mitigation fund contains about $200,000. The fees paid by development and developers, who remove significant number of trees, are put into the mitigation fund. The City will use the money to plant 2,000 trees by the year 2000. Jim noted some of the highlights of the 1996/97 fiscal year. CD completed an annexation policy, but it has been put on hold because of M47. The Council approved a major code rewrite. CD is about half way through the code rewrite and funds for the project will be carried over to the 1997/98 Budget. Jim stated that the community development codes section of the code rewrite is 456 pages long. The purpose of the rewrite is to make the code book easier to use. Jim stated that the term Urban Services is found throughout the 1997/98 Budget. Jim displayed a map showing what areas were encompassed by the Urban Services program. Urban Services will provide planning and building related services to the unincorporated areas of Washington County starting June 2, 1997. Jim stated that the budget increases are due to the addition of the Urban Services area. However, the additions are revenue neutral since the program will be completely fee supported. Jim reported that the City's Public Works department will become responsible for Urban Services street maintenance on November 1, 1997,but he did not know how that was reflected in Public Works budget. Bill Monahan responded that the cost of providing road maintenance had not been added to the Budget. Bill stated that the County had not provided accurate figures on the cost yet and that the City was waiting for the figures before doing a budget adjustment. Jim stated that the Cook Park Master Plan would be going to City Council for voting in a few weeks. It is planned that 23 acres would be added to Cook Park. Jim noted that Metro had provided the City with$780,000 to be used to purchase greenspaces. Jim stated that it was becoming more difficult to purchase greenspaces. There are no longer large areas available for purchase since most have been bought by developers. Jim noted some goals for the 1997/98 year. Long Range planning will be working on a Washington Square Master plan and an update of the land use plan which is required by Metro 2040. CD hopes to complete a Downtown Master Plan and a 99W Plan. CD has started an update of the Parks Master Plan which will continue into the 1997/98 Budget. CD will continue in its involvement in the planning of a passenger rail line. Jim concluded his budget presentation. Ken Scheckla asked if CD was tracking how many issues go to the Hearing's Officer and is usage going up or down? Jim responded that CD tracks all of its land use and permit activity and that the activity is consistent. Jim stated that Urban Services program will most likely increase 8 the number of issues presented to the Hearing's Officer. Jim noted that he could provide Ken with the figures. Ken Scheckla asked how much more will it cost as the number of issues reviewed by the Hearing's Officer increases? Jim responded that the City has a professional services contract with the Hearing's Officer and that the fees charged to the developers pay for the service. It is basically a revenue neutral program. Ken Scheckla asked if the areas added by the Urban Services agreement will go through Tigard's planning process? Jim responded any issues, other than legislative matters, will be administered by the City of Tigard. Any issues on a staff, hearing's officer or planning commission level will go through Tigard's process. Joyce Patton noted that on page 117 of the Budget, a Plans Examination Supervisor position had been added. Why was that? Also, Joyce noted the code enforcement position and a new administrative specialist position. Jim responded that the Plans Examination Supervisor position was actually part of the Urban Services program even though it was under the Building budget. The code enforcement position had been discussed earlier. Jim stated that the administrative specialist position was added in 1996/97. The position supports the Building inspectors. In the past, Building inspectors had to enter their own inspection information into the database system. It was decided that adding a data entry/administrative position would be a better use of staff time and that the quality of data entry would be better. Engineering Budget: Gus Duenas, City Engineer, presented his department's budget and goals for 1997/98. Gus stated that the Engineering Department was responsible for the design and construction of capital improvement projects by the City, street lights and signals, and reviews all private development plans. Gus stated that the entire Engineering budget for 1997/98 is oi% $828, 244. This represents about a 10% decrease in the entire budget over the 1996/97 budget. No new positions have been added except one that will be funded by the Urban Services program. Seventy percent of the Engineering budget is funded by the General Fund and the other 30% comes from fees generated by sanitary/storm drains, state gas tax, and traffic impact fees. Gus stated that the Street Lights and Signals budget for 1997/98 is $433,000. This budget includes power consumption,repairs, and any new installation, but no personnel costs. Gus stated that the Engineering department is comprised of 13 regularly funded positions and one Urban Services funded position. There are currently two vacant positions in the Department, an Engineering Manager and an Engineering Technician II. The Department is currently trying to fill both vacant positions. Gus stated that the Engineering Department is divided into two divisions, Capital Improvement and Development Review. Each division is managed by an Engineering Manager. The Capital Improvement division manages capital improvement projects (CIP's) for public streets and 9 utilities. The CIP's are formed each year with citizen involvement. The CIP's are then reviewed by the Planning Commission and then sent to Council for approval. The Development Review division performs technical review of private development projects. The Division issues permits and does inspections for the projects. The Division also maintains as-built records and does addressing. Gus highlighted the CIP and Development Review accomplishments for the 1996/97 fiscal year. Main Street, Commercial Street, 130th Avenue, Winterlake Bridge and Grant/Tiedeman Bridges were increased in size. Cascade Boulevard at a 135th Avenue was overlaid and Alfred Street was paved. The planning and design bid process was moved up so projects could be started as soon as summer season starts. The Development Review was involved in 20 major private development projects. These projects totaled about $3.1 million in public improvements. Some of the larger projects included the Tigard Promenade and Arbor Heights development. One major project that is just being started is the Applewood subdivision on the Sattler property. Gus stated that the Engineering department was in the process of developing the capital improvement projects for 1997/98. Gus noted that the CIP process parallels the Budget process. The capital improvement projects for 1997/98 will be reviewed by the Planning Commission in early June and then the Council will review on June 24, 1997. Gus stated that it is projected that the Department will oversee $4 million in capital improvement projects. One of the main projects is the restructuring of Bonita Road at the railroad tracks. The Department will continue is road maintenance program. There is currently a backlog of$1.5 million of road repairs. Gus stated that the Department's goal is to decrease the backlog to a more manageable level. Gus noted that the Department is reinstituting its pavement management system which was started 10 years ago as a DOS based system. The system is being upgrade to a windows system. The system tracks the condition of the streets, so streets can be maintained and not deteriorate to the point where they need to be replaced. Gus stated that it is projected that the Development Review will have a continued, steady workload. However, there will be less major development projects and redevelopment and in- filling in developed areas. Gus stated that the Streets Lights and Signals budget includes $20,000 to start a street lighting program. Gus noted that the City Council recommended the program. The program will have a set criteria to determine which streets need more lighting and assist in prioritizing the projects. Gus stated that all Engineering computers will be upgraded to faster models. Gus noted that Engineering uses the same permit tracking system as CD and needs the faster computers to run the new software. 10 Gus stated that the City Council instructed the Engineering department to develop a comprehensive plan of streets, sewers and sidewalks. Gus noted that Engineering has to identify its needs and funding requirements to complete the goal. It is projected that it will take 18 months to complete the plan. Gus stated that it will be difficult to do since there is no money in the Budget to provide this service. Gus concluded his budget presentation. Paul Hunt asked where the Engineering department had made its mandatory 10% cuts? Gus responded that the cuts were made to materials and services. Gus noted that the Department was able to purchase a vehicle in 1996/97. Also, a$60,000 GIS project will completed in the current fiscal year and not continue into 1997/98. Gus stated that several needed items were being delayed for a year. Paul Hunt asked if the Bonita Road project included the railroad track area? Gus responded that the Bonita Road project encompassed the area from the railroad tracks to the bridge. Paul Hunt asked if the railroad company was being cooperative? Bill Monahan responded that the railroad company was not moving as quickly as the City would like. Bill noted that a short rail company is looking at purchasing the lines from Burlington Northern. There is a proposal to remove one of the tracks from the downtown area and in the future, one track by Bonita Road. Gus stated that the City had not started on Bonita Road yet because it was waiting for one of the tracks to be removed. Since no one knows when the track will be removed, the City is going forward with the restructuring of the road. Joyce Patton called a five minute break before City Administration's presentation. The meeting was reconvened at 8:1 Opm. City Administration Budeget: Bill Monahan, City Manager,presented his department's budget and goals. Bill stated that City Administration is comprised of six divisions which are Mayor and City Council, City Administration, Human Resources, Visioning, Risk Management and Network Services. Bill stated that the 1997/98 budget is same as last fiscal year,but includes the mandatory 10%reduction in materials and services. Bill stated that he would start with the Mayor and City Council budget which is located on pages 141 through 143. Bill stated that major reductions had been made primarily in Personal Services with the group insurance rates. Bill noted that insurance rates had gone down and that in 1996/97, coverage was for five members and in 1997/98, only four members will have coverage. This equates to about a$8,000 savings. The Professional and Contract Services line item was reduced by cutting back on the number of televised Council meetings. Currently, two meetings per month are televised and in 1997/98, only one meeting per month will be televised. 11 1*VW` The decrease in the Special Department Expense is due to the reduction in the number of city lapel pins that were purchased. The pins are part of recognition program and are given to the public and employees. Bill stated that he found a pin supplier who sold the pins at much reduced rate. The City purchased about a two year supply of pins at the reduced rate. There will be no need to purchase pins in 1997/98 which corresponded to a two-thirds reduction in the budget. Bill stated that the Travel and Training line item was also reduced. In the past, it was budgeted that five Council members would attend the National League of Cities training. For 1997/98, only three members have been budgeted to attend. Bill stated that he had spoken with the Council members and that this will not be a problem. Bill noted that there is an increase to the Utilities line item. He stated that the increase is due to the addition of a phone line, so the Council members can connect via computers to the City network. Bill stated that the budget includes one computer for a Council member in 1997/98. Bill stated that the City Administration division is responsible for Council support, City Recorder functions, citizen involvement programs,public relations and community event planning. Bill noted that staffing is constant throughout all his budgets. The budget for this division is located on pages 145 and 146. Bill stated that in 1996/97 it was projected that the City would start an in-house mediation service. After reviewing, the City contracted with the City of Beaverton to use Beaverton's already established mediation service. The reduction in Professional and Contract Services is due to the contracting out of mediation instead of doing it in-house. City Administration's Special Department Expense is used to pay for the holiday tree lighting party, the volunteer banquet and new citizen packets. The Advertising and Publicity budget was decreased by reducing the cost of producing Cityscape and the number of ads announcing Council meetings. In the Capital Outlay section, the Office Furniture and Equipment includes the cost of purchasing sixteen new folding tables for Town Hall. Computer Equipment includes $2,000 for the purchase of a new computer for staff. Bill stated that the Human Resources division is responsible for class and comp studies, labor negotiations,recruitment's, disciplinary issues, and training. Bill noted that Professional and Contract Services has been increased to pay for labor attorney fees. Bill stated that the OPEU contract will be expiring in June 1998. Workplace violence training and supervisory training will be offered in 1997/98. Some of the money that was budgeted for supervisory training in 1996/97 will be carried over to 1997/98. Human Resource's Special Department Expense includes recognition of employees. Human Resources oversees the Employee of the Month program and other recognition programs. 12 Travel and Training Expense has been reduced significantly. Bill stated he did not know why the figure in 1996/97 was so high. It is possible that the figure includes supervisory training which never happened. Wayne Lowry stated that the 1996/97 figure included the supervisory training and customer service training for all City staff. Bill noted that all training expenses are now included in the Professional and Contract Services line item Bill stated that the Risk Management budget was located on page 155. There are two positions in the division, but one position is currently vacant. Bill noted that the City is in the process of filling the vacant position. Risk Management is responsible for insurance, claims, workers compensation and solid waste. The $6,220 in Professional and Contract Services is to pay for an ADA consultant. Bill stated that the City still has some work to do to conform with the American's with Disabilities Act. The Insurance line item of$177,959 is actually higher than what is now projected. Bill stated that the City has negotiated its insurance coverage and it is lower than anticipated. Capital Outlay includes a purchase of a new computer for the Risk Management Director. Risk Management's Special Department Expense includes the purchase of boots, gloves, goggles, vest and flashlight for the Risk Management Director. The Director must go out and inspect sites for possible risk issues. Bill stated that the Visioning budget was located on page 151 and 152. The Visioning program does not have any employees assigned to it, since it is run out of City Administration. Liz Newton and Loreen Mills oversee the program. The 1996/97 budget included the contracting of a visioning consulting firm. The 1997/98 has been reduced significantly. Professional and Contract Services will be used to pay for benchmarking of the project. Benchmarking is the process in which the success of the visioning project is measured. Travel and Training Expense includes the purchase of refreshments for Visioning meetings. It has been decided that City staff will complete the Visioning process and take it to the next level. Bill stated the final budget in the section was Network Services. Bill noted that the Committee had already received an overview of the program when Paul deBruyn presented at the May 5,1997 meeting. Bill stated that the Network Services budget proposes the same number of positions as the current year. However, discussions were begun at the May 5 meeting of increasing the number of positions. Bill stated that the Committee might want to revisit the issue later. The Repair and Maintenance Expense has been reduced because most of the older computers have already been replaced. The new models are still under warranty. The $6,920 in Travel and Training will pay for windows training for two staff members. The Capital Outlay section includes $920 for the purchase of ergonomic furniture. Bill stated that there is still a needed for more computer equipment. Bill noted that the biggest expense 13 increase was in computer software. The City must purchase 100 to 150 packages every time it purchases new software because of licensing regulations. Although software is inexpensive, it adds up when multiple sets must be purchased. Licensing fees are paid out of the Fee/Dues/Subscriptions line item. Bill concluded his budget presentation. Bob Rohlf asked in respect to Network Services, what is the difference between its computer equipment needs versus the rest of the City? Bill responded that Network Services purchases equipment to run the City's computer network. The other Departments purchase individual computers for its staff. The break-down of Network Services' computer purchases can be found on page 206 of the Budget. Paul Hunt asked what the outcome was in regards to the discussion about the addition of a hardware technician position for Network Services? Bill responded that he had spoken with Chief Ron Goodpaster since the position is in the Police Budget. They are discussing taking the position out of the Police Department and putting it under Network Services. Bill stated that the Committee could discuss this issue at the May 23, 1997 meeting. Bob Rohlf asked if it would be more advantageous to have all computer equipment purchased by Network Services instead of individual departments to prevent duplication? Bill responded that there is actually less duplication now than in the past. Bill stated that all department requests for computer equipment is reviewed by Paul deBruyn,Network Services Director. Paul ensures all equipment and software is compatible with the Network and current software. Bill noted that the Police and Library have different computer equipment needs, since they are connected to regional systems. Gene Farnstrom asked why there were wage increases of about 9%? Bill responded that there were three reasons for the increase in wages. Bill stated that some people are eligible for increases within their class range of up to 5%. Each year a cost of living increase is budgeted into wage increases. However, there has been a reduction in all retirements. The City's contribution to OPEU employees' retirement was reduced by 2% ,but the Council approved a 2%wage increase in 1996/97. In 1997/98, retirement contribution will be reduced by 1% and wages will be increased 1%. Management and Professional employees' retirement is also being reduced by 1% and salary will be increased by I%. The Police Department is under the PERS program which is the State retirement system. PERS mandates that 15%of an employees salary be contributed to the retirement program. PERS decided that employees must contribute 6% of their salary to their retirement. In the past, the City used to pay the employee's contribution portion. The City gave the Police personnel a 6% raise increase to cover the employee's required retirement contribution. 14 Finance Budget- Wayne Lowry, Finance Director,presented his department's budget and goals. Wayne stated that the Finance Department is comprised of three divisions which are the Finance Director, Accounting and Administrative Services. Wayne stated that the entire Finance Budget is located on page 159. For the last four years the Department has had 18.5 positions. The 1997/98 budget is basically a 0% increase over the last budget. Wayne stated that if the capital outlay for the Accounting software upgrade was taken out of the 1997/98 Budget, there is actually a 3% decrease in the Budget over last year's. Wayne stated that Materials and Services Expense is down 23% over last year's budget. Capital is up because of the upgrade to the Accounting computers and software. Wages and benefits have an increase of about 7.8%. Wayne noted that most of the employees in Finance are OPEU members. Wages were increased 2%to off-set the 2% decrease in retirement. Wayne stated that the Finance Department does generate some revenue. The Billing section bills about $5 million a year in water, sewer and storm drain. The Billing section is comprised of three positions and their salary and overhead is charged to those activities. The Billing positions are not funded by the General Fund. Municipal Court generates about $280,000 in revenues per year. The Accounting Department does lien searches for Title Companies which produces about $30,000 in revenues per year. Wayne stated that charging for lien searches is a new endeavor and has been quite successful. Wayne stated that the Accounting Department would be upgrading its current financial database system. The current system, Springbrook,was created in the early 1980's and that the City has been using it since 1989. The company that made and supports Springbrook will not support this system in the year 2000. Accounting will be upgrading to the windows version of the Springbrook software. The new software will be able to handle the problems associated with the processing of the year 2000 date. The budgeted amount includes money for the software, hardware upgrade and staff training. Wayne stated that the new system will be able to provide more information and have better budgeting functions. Wayne reported that Finance is looking at accepting credit cards at the Billing counter. However, credit card numbers sent through the mail will not be accepted because of liability issues. Municipal Court will also start accepting credit card payments . Wayne stated that the City is reviewing using credit cards to pay for supplies instead of issuing checks and invoices. It would be easier to pay one credit card bill at the end of the month instead of several individual invoices. Wayne stated that the Administrative Services division is comprised of the Office Services, Records and Municipal Court. Office Services provides central office support to all departments, designs Cityscape, updates the web page, and does desktop publishing. The receptionist for the City falls under this department. 15 The Records Division stores all of the City's records. The Division is responsible for microfilming all necessary paper records. The Division is trying to catch up on its microfilming and get it to a maintenance level. The Municipal Court is responsible for processing all traffic citations. In 1996/97, Municipal Court had budgeted for new court software. However, the budgeted amount was less than the actual bids. The Council approved the increase instead of putting the software purchase off a year. Municipal Court has contracted out two collection agencies to assist in collection of outstanding traffic tickets. It is projected that the lists of delinquent accounts will be sent via a modem to the collections agencies to make updating of records quicker and easier. Wayne stated that Finance generates revenues through investment funds for all departments. Investment earnings is about$400,000 to $500,000 a year. Wayne noted that much of Finance's expenses are charged to all the departments, since Finance provides accounting and investment services for the entire City. Wayne reported that 23% of Finance area, 85% of Administrative Services and 44% of Accounting budget comes from the General Fund. Wayne noted that revenues generated by the Municipal Court are put back into the General Fund. Wayne concluded his budget presentation. Paul Hunt asked if the City had discussed offering a monthly averaged bill program and having the payments taken automatically out of customer accounts? Wayne responded that he and Bill Monahan been discussing offering this service for the last few months. Wayne stated that this service could be implemented at the same time credit cards are accepted, since they are similar processes. Wayne noted that the new software will help in receiving the electronic funds. Wayne Lowry stated that he would review the three remaining budget units. The General Government budget, on page 177, includes expenditures that are not easily attributed to specific activities and some of the City Attorney fees. In the 1980's, General Government had a budget of$800,000 to $900,000. Wayne stated that expenses that were included in the budget are now charged to the appropriate department. The City Wide Support budget, on page 178, includes utilities, memberships and any contract services that encompasses the entire City. Wayne noted that the 1997/98 budget is down from the current budget. In 1996/97, $286,395 was budgeted for City Wide Support and now, it is projected to be $250,000. Wayne stated that utility expenses were less than anticipated. Ken Scheckla asked why Fees/Dues/Subscriptions line item, on page 178, has a decrease of over $10,000 from the current year? Wayne responded that membership costs can change annually. Bill Monahan stated that the City had dropped its FOCUS membership and that could account for the decrease. Wayne stated that the City Attorney budget was located on page 179. The proposed budget for 1997/98 is $158,500. In 1996/97, it was budgeted for$200,000 in anticipation of the Dolan 16, "w.rn litigation. However, these fees were not required and it is now projected expenses for 1996/97 will be $140,000 to $150,000. Wayne stated that in the future this budget unit will be removed and that City Attorney fees will be a line item in each department's budget. Wayne stated that the Summary of Capital Projects was located on page 186. Wayne noted that money is appropriated for all possible projects for the year, but the amount budgeted is never completely spent. The City is not able to complete all of the suggested capital projects,but the money must be available. Bill Monahan stated that he wanted to clarify the cost of living increase issues. Bill stated that the OPEU and TPOA contracts require a minimum cost of living increase of 3% for union members. Therefore, the City cannot eliminate or reduce the increase. Bill noted that the 3% increase given to non-union members was open to discussion and change. George Burgess asked why the City had to pay dues to Metro, since Metro was a taxing agent? Wayne responded that the dues are actually a"voluntary"contribution. The City pays for planning services and mapping support provided by Metro. Wayne stated that he had the answer to Joyce Patton's question from the May 12, 1997 regarding the Police budget. On page 65 of the Budget, Special Department Expense line item was budgeted for$0 in 1997/98. Wayne stated that this was a mistake and that the amount should be $69,276. Wayne stated this adjustment must be made by the Committee and that the change will affect the entire budget. Wayne stated that he will bring the new figures at the next meeting. Process for Deliberation: Joyce Patton stated that the Committee has one more meeting scheduled for Friday, May 23, 1997. Joyce stated that the Committee could either close this evenings meeting early and start discussions on Friday or start budget discussions tonight and continue them on Friday. Bill Monahan recommended that the Committee wait until Friday to start discussions. Bill stated that all departments would be present and that any new figures or information would be available. Bill noted that the Police Department would be presenting new figures that were requested by the Committee. The Committee agreed to start discussions at the Friday meeting. Next Meeting,, The next meeting will be held on Friday, May 23, 1997 at 6:30pm at the Tigard Water Building. The Budget Committee was concluded at 8:55pm and discussions will continue at the next meeting. MSP 17 e Si City of Tigard, Oregon 1997/98 Proposed Budget Proposed Police Adjustments During the past several budget committee meetings, the issue of adequate funding of Police was raised. Two ideas emerged from those discussions. The first was the idea of hiring three replacement officers before the actual retirement of three senior officers. The other was the desire to hire two additional officers for 1997/98 that were not included in the proposed budget. In addition, an error was discovered that shorted the Police budget $69,276 in materials and services. The following costs are estimated for these proposed changes to the budget. Hiring replacement officers on July 1, 1997: Three senior officers have notified the City of their intent to retire in 1997/98. The dates are August 1, November 11 and January 1. In order to speed up the replacement of these officers with fully trained officers, the Police Chief has suggested the hiring of all three replacements on July 1, 1997. This would get the new officers on the street sooner and limit the period between each retirement and the functional replacement of the retiring officer. The additional amount to be added to the Police budget in the general fund for this proposal is estimated to be $42,300. Hiring two additional Officers for 1997/98: The pre measure 47 financial plan included the addition of two officers in 1997/98. Given the passage of measure 50 and the resulting increase in the City's estimated property tax revenues, the plan can be amended to include the positions without detriment to the ending balance in the fifth year. The additional amount to be added to the Police budget in the general fund for this proposal is estimated to be $119,484. Correction of error: The special department expense line item for Police Operations was shown as zero but should have been $69,276. This proposal for Police includes the following adjustment to the Police budget: Hire replacement officers July 1, 1997 $ 42,300 Add two new officers to Police July 1, 1997 119,484 Correction of error 69,276 Total Proposed adjustment $ 231.0.60 3 City of Tigard, Oregon 1997/98 Proposed Budget Library Proposed Adjustments With the passage of measure 50, the loss in tax revenues will be greatly reduced. We are proposing to add funds back to the Library budget in the amount of$29,376. This adjustment will result in the Library approximating the original financial plan total for the Library in 1997/98 of$1,364,000. The Library proposes to use these additional funds to add 20 hours per week to reference services, 12 hours per week to circulation and 8 hours per week to technical services. In addition, they intend to purchase compact shelving for materials estimated to cost $5,000. The total addition of$29,376 would not add any new employees to the Library staff but would add hours to existing employees. Total added hours are equivalent to one FTE. TIGARD PUBLIC LIBRARY MEMORANDUM TO: Bill Monahan, City Manager FROM: Kathy Davis, Director of Library Services DATE: May 22, 1997 SUBJECT: Friday's Budget Meeting C: Wayne Lowry The "pre-measure 47" five-year plan showed the library with a budget of $1,364,000, approximately $30,000 more than the current proposed amount. I would like to request that $30,000 be allocated to the following services: Item: Cost: Service Benefit: 20 hours: $14,560 Will allow two librarians on duty for Reference Desk coverage evenings and Sunday afternoons. (Ref. questions up 379% since 1992.) 12 hours: $ 6,240 Adds extra person on Saturday and Circulation Desk coverage Sunday when per hour circ. is three times higher than during weekdays. 8 hours: $ 4,576 Will help achieve goal of 30 days Technical Services assistance turn-around on new materials. Compact (space saver) shelving 4,000 Ability to expand media shelving in limited space. Total $29,376 None of the additional hours require additional staff space - as they will either be added to existing part-time staff, or be used for new temporary staff who will work only at customer service desk positions. If you approve of these additions, I will forward this information to Wayne for tomorrow nights presentation. Approved: ill Monahan, Ci Manager0-11 s/ �III�'d City of Tigard, Oregon 1997/98 Proposed Budget Proposed Network Services Adjustments The Budget Committee at their May 5 meeting discussed the need to add resources to the support of the City's computer network. Paul deBruyn presented information to the committee describing the growth of the system and the need for additional support. He mentioned that this issue had surfaced after the proposed budget was prepared with the resignation of a key Police employee that had been assisting with network support. The addition of a network technician including materials and services and capital equipment is estimated to cost$54,500. CITY OF TIGARD OREGON Date: May 21, 1997 To: Bill Monahan, Wayne Lowry From: Paul de Bruy Subject: Network Technician Position for 1997/98 In 1994, the Exec Staff, together with Beckley and Associates, completed a Computer Technology Review which set out the computer goals for the City of Tigard. In the Five Year Plan presented to Council in March 1995, we forecast the number of computers needed, staffing level for support, and Outside Services budget. Since that time, the number of computers has grown slightly faster than forecast, the Outside Services costs have been reduced more quickly than forecast, but the number of technicians has dropped below the level required to fulfill the Plan. In 1994 we had 4 technicians, 150 computers, and A.I.S. Support of$40,000. In the three years following this, we have lost 3 of our 4 technicians leaving only 1, the number of computers has grown to 200, yet we have still been able to reduce the A.I.S. support costs to $5,000. The budget for 1997/98, was to have an additional Network Technician. This position was eliminated under Measure 47 budget constraints, and was written assuming then current city personnel. The all-important personnel factor has changed. In order to support our growing network while maintaining reduced costs, we need to return to our Five Year Plan and re-insert the Network Technician position in 1997/98 as originally planned. 13125 SW Hall Blvd„ Tigard, OR 97223 (503) 639-4171 TDD (503) 684-2772 City of Tigard, Oregon 1997/98 Proposed Budget Other Proposed Adjustments A variety of miscellaneous adjustments are being proposed based on updated information. Social Agency/Art and Events funding (Gen fund) $ 50 Replacement of Wooden light poles carryover (State Gas Tax) 42,000 Increase in General Fund contingency 200,000 91rst avenue Sidewalk grant project (Gen CIP) 166,800 Water Quality/Quantity CIP (USA storm SDC increase) 102,980 Several Revenue estimates are proposed to be adjusted: r General Fund measure 50 adjustment to tax loss $ 831,000 Urban Services additional revenues 13,950 Water Quality/Quantity USA storm SDC increase 102,980 State Gas Tax beginning fund balance 42,000 `WIWI 'wry'` MEMORANDUM CITY OF TIGARD, OREGON TO: Bill Monahan FROM: Gus Duen4L, L l DATE: May 22, 1997 SUBJECT: Carryover of Funding for Wood Street Light Pole Replacement We are currently in the process of establishing a contract for testing of the various wooden poles throughout the City. After completion of the testing, we will select several areas for replacement of deteriorated wood poles, and prepare a contract for bid to replace possibly 40-50 poles. Our long- term plan is to replace all of the 325 wood poles owned by the City with fiberglass poles. An amount of$48,000 was budgeted this fiscal year for the initial phase of this long-term project. An additional $48,000 is budgeted in next year's budget to continue the program. We will be able to get the pole replacement contract ready for bid in mid-June, but any contract awarded will be sometime in July since we have to obtain City Council approval of the contract award. I therefore request that $42,000 of this year's funds in the Street Lights and Signals Budget Unit (Fund Account 10-2250-610.000) be added to next year's Street Lights and Signals Budget Unit, increasing the proposed amount from $433,000 to $475,000. We will need approximately $6,000 this fiscal year to perform the testing, prepare the contract documents for the actual pole replacement, and advertise the project for bids. Adding $42,000 from this year's unexpended funds will enable us to combine that amount and the $48,000 included for next year to form a much larger contract that should replace 89 to 90 poles this summer. We had previously discussed this matter and you had given your verbal approval. This memorandum is to formalize my request, and to provide the Finance Director with supporting documents for the change in that budget unit amount. cc: Wayne Lowry Greg Berry City of Tigard, Oregon Budget Committee Meeting Friday, May 23, 1997 6:30 Motions 1. Motion to approve the tax levies for the taxbase and for debt service as presented on page 8 of the proposed budget. These amounts are $6,891,858 for the taxbase and $1,652,289 for debt service. 2. Motion to approve the proposed budget as amended by the budget committee.