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2013-1141-Minutes for Meeting May 20,2013 Recorded 9/3/2013COUNTY NANCYUBLANKENSHIP,FCOUNTY CLERKDS COMMISSIONERS' JOURNAL 0910312013 10;31;20 AM oil 11I11111I1111IllI 11111111 Do not remove this page from original document. Deschutes County Clerk Certificate Page Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF BUDGET COMMITTEE MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, MAY 20, 2013 - P.M. Allen Room, Deschutes Services Building Present were Commissioners Alan Unger, Anthony DeBone and Tammy Baney. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; Jeanine Faria and Teri Maerki, Finance; Dave Inbody, Administration; Budget Committee members Clay Higuchi, Mike Maier and Bruce Barrett; and for a part of the meeting, David Givans, Internal Auditor. No representatives of the media were in attendance. Kelli Candella of the Road Department took minutes. Bruce Barrett opened the meeting at 1:00 p.m. Fair and Expo Center Dan Despotopulos gave an overview of his department goals • Increase # of visitors to Fair, numbers were down for 2012 event. • Survey completed - July 1 to end of April at 95.5% overall satisfaction, goal is for 100% rating • Economic impact to $24M, goal $29M Largest impact is hotel/motel - 7,000 rooms - January events brought Redmond area hotels to a sold out level, North end of Bend also sold out. Generated local $ to economy. Tammy Baney asked what % is reporting back through surveys. Dan stated 100% of surveys sent out are returned, each event receives survey, they survey their group and return feedback to Fairgrounds. Recently Rocky Mountain Elk Foundation event took place, they rated the food as best ever. Minutes of Budget Meeting Monday, May 20, 2013 - Afternoon Page 1 of 7 RV Park fund - opened in 2007, debt service will be paid off when? - It is a 20- year bond. Per Dan, this is the first year that RV Park will not have to ask for additional funds. RV Park receives State funding, based on RV license registration numbers, based on # of spaces County RV Park has available. This year it is projected to be the best RV reservations/revenue. Mike Maier asked what % of overnight stays not associated with event. Dan does not have those #s handy, numbers are increasing but there is limited funding for advertisement. No rate increases at RV Park, trying to continue to draw returning users to park, yet Maintenance and Services have increased, 52% of Maintenance & Services consists of utility costs. This is the last year that the Event Center will be "Hooker Creek Event Center." Dan contacted Bank of the Cascades inquired as to them taking the event center over as sponsor. Dan reported that this is the first year in five years that there has been an increase in attendance for each event. There is a big event scheduled for 2014, but Fairground needs help getting by this next fiscal year. Fairground is asking for $210,000 to help offset Health Benefit and maintenance costs. Dan believes that pursuing an increase in room tax for permanent funding could help significantly. Tammy Baney mentioned that allocating some room tax already existing without an increase is legal and an option. Existing sustainable funds out of current hotel room tax fund, $300,000 to Fairgrounds. Question asked - how much dedicated Marketing funds from COBA is allotted to Fairgrounds. Dan stated, no money is given. Sales and Marketing team at Fairgrounds have done a remarkable job, developed relationship with media contacts that have helped market events. Mike Maier asked about the increase in personal, Jeannine stated it was the allocation of hours from Finance. Minutes of Budget Meeting Monday, May 20, 2013 - Afternoon Page 2 of 7 Tom Anderson will let Dan know if he will be needed back on Thursday. Budget Committee will explore transient tax transfer rather than General Fund transfer. Natural Resources Ed Keith gave a Power Point presentation, starting with changes to position and successes of program. (A copy of the presentation is attached for reference) Additional duties for Ed include Weed education and outreach with Dan Sherwin's retirement. Project Wildfire was chosen as a national example of an exemplary program in the country. Success Story - Burgess Road recently had a fire start during a windstorm. All but one acre was contained within County owned property due to the fuel clearing done in the area. Challenges: two years of FEMA disputed funding, Title III funding dwindling. Environmental review must be completed to enable us to extend Title III money for one year or less. Found additional funding for this year, opportunities to backfill with Grant funding. Secure Rural Schools (SRS) up and down decision on this funding; some counties depend entirely on this funding to support programs. Tammy stated that she finds great value in Ed's work and in his position. Project Wildfire - Katie Lighthall will be leaving, currently recruiting. Agreement with Deschutes Rural 92 to hire someone from contract to provided overall guidance to the person who will be hired to replace Katie Lighthall. Put out a Request for Proposal, received seven responses, conducted interviews and selection should be by end of May. $137,000 built in carry over from previous year. Minutes of Budget Meeting Monday, May 20, 2013 - Afternoon Page 3 of 7 Road Department Chris Doty, Director introduced his Management team; Tom Shamberger - Operations Manager, Randy McCulley - Fleet & Equipment Manager, Kristi Putschler - Accounting Technician, Mike Berry - County Surveyor, George Kolb - County Engineer. Chris gave a Power Point presentation, going over a brief department overview, business element review, budget philosophy, performance measures. (A copy of the presentation is attached for reference) Four components of the Department - Operations/Maintenance, Fleet & Equipment, Engineering & Surveying and Administration. 52.75 FTE 15+1- Contract Agency Employees Budget Review - Total obligation $20.91 M FY 13/14 has carryover, previous FY $19.25M. Projects: • Skyliners Road committed project, $875,000 County portion of project, would like to push project to 2015 to hold on to resources a little longer. • Tumalo Trail - $185,000 grant budgeted • Retro-reflectivity - multi-year project • Bailey Road Guardrail • NW 17"' St/Negus Road - Full-depth reclamation project Mike Maier asked with beginning net worth capital without Secure Rural Schools (SRS), when we department be upside down? Chris stated that we are close to sustainable level, no answer at this time, not imminent but something to keep watch over. Tammy asked - SRS extensions, where would we put money? Chris stated it would stay in Capital Improvement. If we took 100 miles of Forest roads out of system, we would be balanced. Question asked about returning roads to gravel, at least not in next five years - gone away from this attempt, keep up with chip seal to maintain roads,. Tammy stated that the department is doing an incredible job in surveying through funding issues - worked well with Road Committee last year and community outreach. Minutes of Budget Meeting Monday, May 20, 2013 - Afternoon Page 4 of 7 Clay Higuchi gave kudos, asked if there are any revenue resources out there being looked at. There is a Legislative pilot program regarding traveled miles as a revenue source. Solutions that are more equitable needed. Solid Waste Timm Schimke, Director presented his department's information. Waste loads are up 12%, first time in five years. First five months of calendar year up 6%. It is tough to look at raising fees, have to keep in mind franchise companies raising their fees to consumer, trying not to double hit consumer with two entities raising fees. New changes in personnel - moved a Land Fill Attendant to an Equipment Operator position, will convert two Land Fill Attendants to Equipment Operator. Allows for cross training and covers shortages in areas needed. Upgrading two Equipment Operator positions to Lead Worker, same Equipment Operator position, they will earn Lead pay 5%, this allows another layer of Supervision in the field. Eventually as business picks up, take these two lead positions out of Union and make full-time Supervisor. This change has helped resolve personal issues at lower level before it moves up to Management level. Collection of Household Hazardous Material - currently only held in Bend. Would like to add Redmond, Sisters and La Pine site, this is contracted out so scope would be changed for contractor. Discussion on Rock resource - Knott Landfill rock is not improving, not likely to be valuable to County. There is community interest in general use of rock. Approximately 200,000 yards of crushed rock was taken by County Road Dept, City of Bend and Solid Waste for'/4 general purpose rock. Demo site - DEQ report just finished, awaiting final result, bad return on test would mean more testing included money in budget for testing if necessary. Transfer station at Negus in need of repairs to containment fence, budgeted $100,000. Installation of scale for franchise business system. Currently charging a full load fee regardless of how much is actually in container as it is difficult to evaluate or view inside dump trucks. Minutes of Budget Meeting Monday, May 20, 2013 - Afternoon Page 5 of 7 Tammy Baney asked if franchises help pay for scale since they are being charged full capacity, it would be a direct impact on their fees. Per Timm, not at this time. Cameras are installed at gates and booth at transfer station. Tony DeBone asked if scale installation is a step toward installing scale at other stations. Not at this time per Timm. Knott Landfill only site currently making money, Redmond site breaking even. Accountant recommended closing NW and SW sites; Timm said it was not an option due to public scrutiny. Discussion on equipment replacement costs, Tammy suggested Solid Waste look at cost share, leasing or modifications to equipment similar to Road Department. Maybe share equipment with Road Department. Timm stated that some equipment is limited to Solid Waste operations. Natural Gas Energy Project: 3rd party review, completed process, review was critical but gave areas to look at. HDR did review, Waste Energy Group may have over-estimated value, plus side, proposed contract has no financial risk to Solid Waste. HDR confirmed no environmental or health risks to area Discussions on need to include Quantitative verbiage in budget write up. Recycling education provided by Recycling Team and Conservation for Oregon, they have reduced scale of education. What value does it give us? David Givens completed an audit and adjustments were made. When contract for education services expires in Department will put out an RFP per Timm. Sunriver Magazine Tom Anderson discussed Sunriver Magazine request for increase of their portion of room tax fees. Discussion on inviting to Thursday Budget meetings. Decision to review submitted items, do not invite them and Budget Committee will discuss their request. County Assessor Scott Langton gave an update for the Assessor's Department. An updated on FTE, kept one position vacant. Permits up 26%, have now been able to fill budgeted position. Forecast for 2013, first 4 months, calendar year permits up almost 30%, values up 10 - 15%. Values over last year have increased 14%. Minutes of Budget Meeting Monday, May 20, 2013 - Afternoon Page 6 of 7 Reduced one FTE - GIS position. Chief Cartographer retired and promoted within the department leaving GIS position unfilled. Perfect storm of home value vs. assessed value increase. Department is putting together an informative video for TV and radio spots to explain value vs. assessed value. Overall proposed budget manageable 30.25 FTE. Tammy Baney appreciates the proactive approach to perfect storm situation. Remapping project timeline? Scott did not know % complete. Jail and Fairgrounds bonds paid off, saved on interest. Being no further discussion, the meeting adjourned at 4:45 p.m. These minutes were done by Kelli Candella of the Road Department. 2013 for the DATED this / 7 ~ Day of Lw~et- Deschutes County Board of Commissio ers. Alan Unger, Chair A- b j, ~ Tammy Baney, Vic Chair ATTEST SIGNATURES: 6~ Recording Secretary Anthony DeBone, Commissioner Minutes of Budget Meeting Monday, May 20, 2013 - Afternoon Page 7 of 7 O CIA A ~ I I 'p i 0 , I I VI v r"~ i a C 5-7 ~f cil V-. a BUDGET COMMITTEE AGENDA Monday, May 20a', 2013 • Program Budget Tab/Page 9:00 AM • Elect Chair 9:00 - 9:05 AM Bend Library County Service District 13 / 445 (Budget Committee-Commissioners, Clayton Higuchi & Mike Maier) • Open public meeting and introductions • Budget discussion • Public comment • Motion to approve budget of $869,535 and set amount of levy at $762,604 • Motion to be seconded • Committee votes • Close budget meeting 9:05 - 9:10 AM Sunriver Library County Service District 13 / 445 (Budget Committee-Commissioners) • Open public meeting and introductions • • Budget discussion • Public comment • Motion to approve budget of $102,536 and amount of levy at $89,878 • Motion to be seconded • Committee votes • Close budget meeting 9:10 - 9:20 AM Sunriver Service District (Budget Committee- 7 / 310 Commissioners, Bob Wrightson, Jim Wilson & Michael Brannan) • Open public meeting and introductions • Budget discussion • Public comment • Motions to: 1) Approve Sunriver Service District operating budget of $5,734,404 and set tax rate at $3.3100 per $1,000 of assessed valuation (Fund 715) 2) Approve Sunriver Service District Reserve budget of $902,508 (Fund 716) • Motions to be seconded • • Budget Committee votes • Close budget meeting Page 1 BUDGET COMMITTEE AGENDA Monday, May 200, 2013 • CJ 1) Approve Deschutes County Extension & 4-H Service District operating budget of $696,093 and set tax rate at $.0224 per $1,000 of assessed valuation (Fund 720) 2) Approve Deschutes County Extension & 4- H Service District Reserve budget of $355,400 (Fund 721) • Motions to be seconded 9:20 - 9:30 AM Black Butte Ranch Service District (Budget Committee-Commissioners, Dave Sullivan, Tom Mayberry & Carl Burnham) • Open public meeting and introductions • Budget discussion • Public comment • Motions to: 1) Approve budget of $1,658,700 and set tax rate at $1.0499 per $1,000 of assessed valuation 2) Set local option operating tax rate at $.5500 per $1,000 of assessed valuation • Motions to be seconded • Budget Committee votes • Close budget meeting 9:30 - 9:45 AM Deschutes County Extension and 4-H Service District (Budget Committee-Commissioners, Chris Lawrence, Mike Scholeman & Katrina Van Dis) • Open public meeting and introductions • Budget discussion • Public comment • Motions to: Program Budget Tab/Page. 7/299 7/304 • Committee votes • Close budget meeting • 9:45-10:00 AM Break 10:00-11:30 AM Deschutes County • Open public meeting • Deschutes County Budget Proposal 11:30 AM - Noon Capital Improvement Program 8 / 315 Page 2 BUDGET COMMITTEE AGENDA Monday, May 201h, 2013 n LJ I• 0 Noon - 1:00 PM Lunch - Discussion 1:00 - 1:30 PM Fair and Expo Center • Introductions • Budget discussion 1:30 - 2:00 PM Natural Resource Protection • Introductions • Budget discussion 2:00 - 3:00 PM Road • Introductions • Budget discussion 3:00 - 3:15 PM Break 3:15 - 4:15 PM Solid Waste • Introductions • Budget Discussion 4:15 - 4:45 PM County Assessor • Introductions • Budget Discussion 4:45 - 5:00 PM Public Comment Continue the Deschutes County budget meeting to Tuesday, May 21st, at 9:00 AM Program Budget Tab/Page 4/144 4/164 4/152 4/169 4 / 117 Page 3