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03/15/1988 - Minutes , CITY OF TIGARD BUDGET C0MMITTEE Minutes of March 15' 1988 6:80 p.m. — Town Hall Conference Room, City Hall Members Present: Judy Christensen, Floyd Bergman, Joyce Patton, Deborah Hinton, George Burgess, Valerie Johnson, Jerry Edwards, John Schwartz. Staff Present: Bob Jean, Wayne Lowry, Randy Wooley, Cliff Scott, Jill Munley. The meeting was called to order at 6:40 p.m. by Chairperson Christensen. MINUTES OF MARCH 8, 1988 MEETING There were no corrections or additions to the minutes of March 8, 1088, REQUESTS FROM TIGARD CHAMBER OF COMMERCE BY PEGGY BYRD Peggy Byrd from the Tigard Chamber of Commerce addressed the Budget Committee to get some money in the budget for three separate itemn . The first request was $3,008 for the reprinting of the City of Tigard brochure which in handed out in the Chamber of Commerce packet given to residents relocating, and to business. Peggy pointed out that 10,000 of these brochures were printed in 1083 from hotel/motel tax and that the brochure needs to be updated and reprinted at an approximate ouut of $8,000. Peggy then requested $2,000 from the Budget Committee for the purchase of a portable display unit to be used at travel ohnwo^ conferences, meetings, etc. She also indicated that such an item would be for cooperative use between the City and the Chamber and that we could use it whenever needed. The third item requested from the Chamber was $750 for a camera, film, and developing. Peggy pointed out that there is no record in the Chamber or the City of several positive public events that have occurred recently. In order to document those things she suggested the purchase of a camera. The total request from the Chamber of Commerce was $5,750. She explained that amount was a drop in the bucket compared to its value to our community. Bob indicated the benefit of buying the camera was that someone from the Chamber would be taking the pictures and it wouldn't take up staff time. Jerry Edwards felt that the brochures and the display were okay, but perhaps the local business interests should purchase the camera. Peggy then mentioned that were there no business in Tigard there would be no Tigard . Floyd Bergman motioned that the $5,758 be added to the add list, BobOTHER ADDS AND DROPS pointed out that he had added several items to the drop lint. Ending fund balance of $810,800 in the 5—Year Plan; $848,000 in the proposed budget, with additional discretionary dollars of $30,000. He also indicated contingency in the General Fund 5—Year Plan of $100,000. The contingency being budgeted in the proposed budget, $125,080, giving some discretionary dollar's of $25,000. A total of $55,800 above the 5—Year Plan at the discretion of the Budget Committee. Bob also mentioned that several expenditure items had been added to the add liat. Those are Fourth of July, $3,800; Fanno Creek Conference, $500; volunteer awards, $508. Chairperson Christensen called on Bob Jean to go over the policy and administration program budget presentation and discussion. Bob began by referring to the handout packets and pointed out several schedules that were in the packet, including the training and travel summarization, personnel summary, library 5—year plan summary, and several schedules regarding organization structure. BobPOLICY AND ADMINISTRATION pointed out that the proposed policy and administrator budget of $188,092 was under the 5—Year Plan limit and that the percentage of operating budget is down to 2 .4 percent and was around 8 percent in 81-82. Bob also explained in the Council section there were no changes over last year and explained several of the conferences and training and travel related items in the proposed budget for Council. Bob then went on to administration. He pointed out that 2.5 FTE were being budgeted in the proposed budget and that the half FTE represented an "Assistant II" position planned to be filled mid—year, which would then increase in the following year to three FTE. Thure was some wow discussion regarding whether the mayor and one council member going to several conferences was enough. Jerry Edwards pointed out that this was a new thing for Council members and that more should, but they need to net some guidelines. COMMUNITY DEVELOPMENT PROGRAM BUDGET PRESENTATION AND DISCUSSION Chairman Christensen introduced Randy Wooley as the acting director of Community Development and asked him to explain that program. Randy began by describing Community Development as the largest department in the City, and his feeling was it was full of hard working, high quality staff. He pointed out that the proposed budget in within the 5—Year Plan in total, although there were some adjustments within sections that may be higher or lower than the 5—Year Plan. Randy pointed out that Community Development goals include 7 of the 8 Council goals, Randy' s staff deal with many committees and NP80 . He pointed out that his management staff has been cautious in adding staff positions and is leaning more towards equipment to increase efficiency and productivity. He pointed out that Development Services as a division, ruopnn6a to the rate of growth while Operations an a division responds to the actual size of the City. There are 31 vehicles in the fleet that should he replaced every 5-10 yearn. This year the budget plans on replacing 1/5 of them. C OW UNITY DEVELOPMENT ADMINISTRATION Randy pointed out that there are really no changes in this section. COMUNITY DEVELOPMENT SERVICES - ADMINISTRATION ^ The two FTE in the proposed budget represent a Development Services Manager and one full-time 0A-I. COMMUNITY DEVELOPMENT - BUILDING Permit revenue activity is way up. Randy expects that to continue for another, year. There in also a new code being handed down for single-family inspections from the state and they expect that to increase the workload of the building staff. Randy mentioned that this proposed budget includes one additional building inspector, which is the third inspector position, and the justification for that relates to the revenue projections being $45,000 greater than the 5-Year Plan indicating. Judy Christensen questioned the workload indicators . Randy responded by saying that the residential numbers were conservative and that this year they expected less dollars but more permits. Randy indicated that pre-applications are up. Questions about activity are up and building activity in up. All of which were not anticipated back in January. Inspectors are in short supply. Jerry Edwards asked about temporary hires or contracting out. Bob responded by indicating that during times of peak activity such as this coming year, it' s hard to find cities that had extra capacity to contract out. One FTE is not over-reacting to market conditions . There was also some discussion about on6e enforcement officers and vehicle replacemuntx. COMMUNITY DEVELOPMENT - PLANNING Randy mentioned that they had just filled the half FTE that was approved by Council mid-year. That position was going to be working on special projects and Council goal issues . COMMUNITY DEVELOPMENT - ENGINEERING Randy mentioned no staffing changes. Three bodies were added in 87-88 at mid-year and that materials and services were a bit higher in 87-88 due to the modular unit and aerial mapping. They're also requesting one new vehicle and surveil equipment. $3,000 for traffic counting equipment' $13,500 for survey equipment. Randy indicated that this equipment will pay for itself in one year. It coordinates with the computer equipment and software that' s currently being purchased. Savings from this equipment will be realized in office time. Randy then directed the Committee' s attention towards the Operations Division. PUBLIC WORKS - ADMINISTRATION Randy indicated there were no new positions being requested here. The two FTE represent one superintendent and one secretary. In the capital outlay there was one vehicle replacement. Judy Christensen was concerned that there were two vehicles for two people and wondered if there were tow many backup vehicles not really being used. She requested a schedule of vehicles . Randy Wooley gave the committee a summary of vehicles currently in the fleet. There were a total of 50 vehicles, including 18 police cars, 1 Community Services pool car-, 31 Community Development vehicles, including dump trucks, etc. , and that this budget, due to its inclusion of several replacement vehicles results in a net gain of 2 vehicles in Community Development. The average FTE per , vehicle is 3 FTE per 1 vehicle. 44 W' PUBLIC WORKS — SHOPS Randy indicated that the building maintenance position in the 87-88 budget in administration had been moved to the shops area. He indicated that the City of Tigard was far behind other similar cities in their staffing in the shops area. There is a new position requested in the shop' s proposed budget. The position is listed as a Utility Worker I. The intent of the position is to deal with the fleet maintenance ruoordheeping and to run errands for the two mechanics that are currently on staff, to pick up parts, deliver parts, and things like that. Bob Jean explained that this is consistent with the 5—Year Plan and that it was a minimal request and that the intent was also to begin doing preventative maintenance, Jerry Edwards noted that the 88-89 proposed budget in this unit was $50,000 greater than the revised 07-88 budget. He suggested contracting out for major repairs instead of hiring the position. Jerry Edwards suggested we add the Utility Worker I position to the drop list. Randy Wooley pointed out that the real increase in $23,800, not $50,000, because $25,000 belonged to the building maintenance position that' s now shown in this budget unit. Jerry Edwards thought that the Committee should look at other alternatives and not put more money into shops. John Schwartz commented on the poor facilities that we have for shops. That they're over-crowded and that we shouldn't add a third position. He agreed with Jerry that work should be contracted out until the facility is upgraded. Cliff then explained that the new position was not a mechanic position, but was a utility worker position that would not be working on vehicles but would be doing other support activities for the two positions that currently work on vehicles. Valerie felt the work should be contracted out and it would be more efficient. Bob went on the record to totally disagree with Jerry, Valerie and John. He felt it would be 3 to 4 times more expensive to contract out the work. He indicated that it was the Committee' s decision to make and that staff woul6 defer to the Committee's decision and that it would be easier to contract it out, however, he didn't feel it would be cost effective. Jerry felt that the $23,000 should go into contractual service for major repairs. After some further discussion Judy Christensen motioned to add $28,000 for the Utility Worker I position in shops to the drop list and add $23,080 in shops on the add list for materials and services. There was then some discussion of capital outlay items . The total capital outlay in the proposed budget was $6, 100, which included $4,000 for floor crane, keylock high pressure washer, and $600 for a vacuum cleaner, $1,200 for a buffer/scrubber, $300 for a wet vacuum. Jerry Edwards wanted to know where the price of $600 for the vacuum cleaner came from. He felt the price was inflated. Cliff responded that the quote he received for a Clark 18—inch vacuum was $550. Randy indicated that some contingency was built in because these items will not be purchased for another 6 or 8 months . There was quite a discussion on the dollar amount of items in the budget and whether they were estimates or actual . Bob pointed out that there was a lack of staff in support areas, therefore, best estimates were used . Just because the amounts may be budgeted, does not mean they will be spent. All of our purchasing is purchased at least cost. Jerry wanted to drop the $4,000 in shops equipment and $1,280 for the buffer/scrubber, and $60 � for the vacuum cleaner. All those items were added to the drop list in shops. In closing, Randy stated that Shops was consistent with the 5-Year Plan and that he did not feel that the detail was necessary. His intent was to present the programs . WASTOWATER There was some discussion about the workload indicatoro in Wastewater. Some lines are cleaned more often than others . Randy indicated that the Wastewater- proposed autewaturpropoaed budget was 1/4 FTE under, the 5-Year Plan. John Schwartz began a discussion of the 5-Year Plan and whether it's an absolute figure or not. Bob explained that the 5-Year Plan is only a base line and that his intent was to use the 5-Year Plan to weigh decisions made to go over it or under it and those decisions effect on the promise to the voters regarding the tax bane. The 5-Year Plan is a benchmark and it should only be used to gauge our progress toward keeping that promise,. Judy stated that the budget figures were riot maliciously misleading. She explained that all these things were in the 5-Year Plan and that Council supported the 5-Year Plan. The budget process is an annual review and realigns the budget for each year to the 5-Year Plan. She indicated that staff shoots for service level while the committee is actually the reality check . There was a discussion of service levels . Deborah Hinton was concerned because she didn't have the detail in front of her that several other council members were discussing. Judy Christensen then explained to the new members how the Committee got lost in detail in the previous budget process, and that it was decided that detail would nut be given to all the budget members but would be there for reference ��. if necessary. Burgess also voiced his frustration with not having the detail in front of him that were being dioouonu6 by other committee members . Bob asked Judy Christensen if he could make several comments regarding the budget process . He communicated two ideas to the Budget Committee, 1. That it' s different this year. The 88-89 proposed budget is the second year we've used the 5-Year Plan. The 5-Year Plan is not justification for any expenditure but it does keep un focused on policy consequences, whether we overstep or underntep the 5-Year Plan. It insures that we keep the promise to the voter. He explained that no one wants to keep the promise more than he does . He will take responsibility for implementation of the proposed budget. 2. The proposed budget is a budget that's within the 5-Year Plan and consistent with the Committee goals . If the Committee forces a lean budget and categorizes individual items, this limits the flexibility of managers . He encouraged the Budget Committee to keep in mind both things . He wants a budget that the Committee can support, but he indicated that the staff has to buy into it also. It' s a social contract between staff and the public via the Budget Committee. 'vu� Chairman Christensen then moved the discussion hack to Wastewater. Randy Wooley continued on with capital expenditures being budgeted in the Wastewater Department. He talked about a vacuum 'et rodder, sewer cleaning truck budgeted at $130,080. He explained that this addresses both safety and efficiency, keeps men out of manholes, it replaces a flush truck, and it' s slated to increase productivity. He also pointed out that this vehicle has a four— year replacement cycle. BobCOMMUNITY DEVELOPMENT — STREETS indicated that a street lighting analysis had been done since the proposed budget, was given to the Budget Committee, and due to tighter estimates he felt that street lighting could be reduced from $250,008 to $230,080 in materials and services. He then indicated that the additional $20,000 of resource should be added back into capital improvement program--streets, for overlays . So $28'000 in materials and services in streets was put on the drop list, and $20,000 for community improvement program—utree tu, was put on the add lint. Randy Wooley went on to explain the capital expenditures in streets, three replacement pickups for $29,080; a replacement shoulder mower, referred to as the Bmumford for $45,000. The replacement of the shoulder mower is a safety issue and the machine that we currently have no longer works and it' s not safe to send anybody out with it. After, some discussion Valerie Johnson moved that the Baumford replacement be put on the drop list for $45,000. COMMUNITY DEVELOPMENT — PARKS Randy indicated that 1 additional FTE was related to the USA maintenance contract for the Durham Treatment Plant. That contract has not yet been entered into but it' s expected to be signed in April . The cost to USA is $27,000, including depreciation of equipment, etc. The contract price being negotiated currently is $31,700. There is m more than $31,000 increase in personnel services due in part to the addition of this new position but also increases in existing salaries and benefits for existing employees. They're expecting the contract to he a three—year agreement. Bob suggested and proposed in his budget, to roll the $5,000 of "profit" into the parks program. If the contract does not work out, or is not signed, the related expenditures and position will be deleted from the budget before Council adoption. Floyd suggested that we should consider contracting out all park maintenance. No discussion followed. Capital expenditure proposed is for one tractor, which will replace two exiutirig ones related to safety and versatility. The committee took a break from 0:25 to 0:35. BobALL OTHER PROGRAMS Jean summarized the CIP summary page, including the Civic Center expansion which will give the City Center 7,000 additional square feet and an elevator. Waotewater, capital expenditures, capital improvements of $308,000 for sewer and $150,000 for storm drain. Street' s CIP about a quarter million dollars in work in process, 72n6 LID, and street overlays of $60,080, and $333,008 in discretionary projects, system and growth related. Parks CIP $140,008. Bob pointed out that it waon`t yet determined if this would he spent on Parks projects or necessary land acquisitions for Summerlake and other areas . Bob explained the LIDn, the Capital and bonds and the fact that they have been separated into two funds in this budget due to GASB ' statement No. 6. Jerry Edwards wanted the Budget Committee to discuss the Civic Center expansion. He, therefore, requested that the $400,000 be put on the drop list. Bob called everyone's attention to the handout passed out at the March 8 meeting that discussed the Civic Center expansion and requested that they read that and ask any questions during the week prior to the next meeting. Bob explained the contingency and reserve portion of the all other program. He explained the equipment reserve and the fact that last year therm was $100,000 reserved for equipment replacement that was going to be spent in part for the sewer capital equipment this year, and that the $45,000 was in the reserve for the 1088-80 contribution for future replacement. Total contingency of 1 .2 million, $125,080 in general fund operating contingency and $840,497 in the 5—Year Plan reserve. Bob explained contingencies in the other funds and how the sewer and storm drain funds contingencies were used to avoid cash shortages and other funds on a temporary basis . The meeting concluded at 18: 10. It was recessed until March 29, 1088, at 6:30 in the same location. ke/3812D ('