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2015-331-Minutes for Meeting May 27,2015 Recorded 7/16/2015
DESCHUTES COUNTY CLERK V� X015.331 NANCY COMMISSIONERS JOURNAL 0711612015 08:12:52 AM 1101111111111111111111 2 04 Do not remove this page from original document. Deschutes Count y Clerk Certificate Page . 0 0,- " 0 Qeiec- Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 \14* (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF BUDGET MEETING NATURAL RESOURCES — ROAD DEPARTMENT — COMMUNITY DEVELOPMENT DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, MAY 27, 2015 Allen Room, Deschutes Services Building Present were Commissioners Anthony DeBone, Alan Unger and Tammy Baney. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; Mike Maier, Clay Higuchi and Bruce Barrett, Budget Committee; and,for a portion of the meeting, Wayne Lowry, Loni Burk, Ed Keith, Natural Resources, Chris Doty, Road Director, George Kolb, Tom Shamberger, Randy McCulley, Susan Bailey, Mike Berry, and Kelli Candella. CDD Department representatives were Nick Lelack, Director, Peter Gutousky, Randy Scheid, Lori Furlong, Kathleen Stockton and Brog Stenman Historic Landmarks Commission. Media representative Ted Shorack of The Bulletin was in attendance. Meeting minutes were taken by Kelli Candella. Chair Bruce Barrett opened the meeting at 1.O1 p.m. NATURAL RESOURCES PROTECTION Ed Keith provided information on main changes to the Natural Resource funding. Due to the rotating of grants that Natural Resources has been working on over the past few years. There are 24 grants for Bend Fuel Reduction expenditures. $218,000 is closing out year. Last fiscal year there was a new grant for south County for $175,000, and also a $24,000 Fire Adaptive Community Outreach grant that covers a little of the staff time. Minutes of Budget Meeting--Natural Resources —Road Department—Community Development Wednesday, May 27, 2015 Page 1 of 7 The FEMA Grant has been in the budget over the last few years but it has never funded; however, an agreement for this funding should be coming in July 2015 and will be a three-year grant. Commissioner Baney asked if the three-year count starts when grant was requested or when the agreement is finalized. Ed Keith acknowledged that the count begins when the agreement is finalized. It was noted that last year PILT funding eased off Title III declining funds. The last four years has seen a small increase in Title III status. Board Policy in disbursing PILT has been to sustain Natural Resources funding. The first $500,000 of PILT is distributed to General Fund, the balance has been distributed. to Natural Resources and Roads, and the Board has elected this distribution. Commissioner Baney stated that as SRS funds decreased, general PILT funds increased, there is no guarantee in the future, but currently it is a multi-year funding source and will assist in building cash balance. Mr. Keith reported on the upcoming fire season, with concerns about low snow pack. He expects an extended fire season —usually this begins in August or September, but with dry vegetation in May, the season will begin early. Fire resources will be stretched very thin on any extended fire season. Commissioner Baney asked about air support. Mr. Keith reported that the heavy duty aircraft has been moved out of the area, so we currently have two single engine aircraft, a type 2 helicopter and a repel crew located in John Day. Minutes of Budget Meeting—Natural Resources —Road Department—Community Development Wednesday, May 27, 2015 Page 2 of 7 ROAD DEPARTMENT Chris Doty presented a Power Point, which is attached for the record. In regard to the slide showing equipment purchases, Randy Scheid was asked to give an example of the full graduation of a dump truck. A dump truck has 15-year life, and then it will be converted to a sanding truck and used another 10 years. Commissioner Baney asked about SRS funding and PILT funding, and whether they are tracking that sweet spot where SRS funding decreases and PILT increases. She asked that if SRS funds were to disappear, would PILT be turned on its head. Discussion occurred concerning projects done with the cities. Clay Higuchi asked how far south they service; for example, do they collaborate with Klamath County. Mr. Doty stated they do not provide work for Klamath County. Commissioner Baney asked about chip seal work on city maintained roads, and whether the cities do all the pot hole repair before a chip seal project. Tom Shamberger stated that the agencies do fix potholes prior to chip seal, and assist the County crew with chip seal within their city. There was discussion regarding La Pine roads, and a question as to whether the number of miles listed in the chip seal projects includes La Pine roads. A majority of roads within La Pine are under Deschutes County jurisdiction, and some are included in the miles shown under chip seal project miles. Discussion occurred regarding the 30-year employees and the retirement cost to department. Commissioner Baney brought up the tipping fee amount that is currently transferred to the Road Department. She is hearing about more generation of SDC funds and PILT money increasing, and asked if the tipping fee is necessary funding for Road Department. Mr. Doty responded that the Road Department is battling with stagnant funding. The recent request for an increase in gas tax did not move forward, transportation funding is hard to come by, and eliminating the tipping fee transfer would hurt the department's budget. Commissioner Baney stated that the tipping fee was not meant to be an ongoing revenue source. Minutes of Budget Meeting—Natural Resources —Road Department—Community Development Wednesday, May 27, 2015 Page 3 of 7 Mr. Doty explained that the loss of potential revenue comes out of the Capital Project line first. It has been shown that on rural residential roads, garbage trucks and gravel trucks have contributed to a lot of road wear. Tom Anderson stated that the garbage companies are paying fuel tax but it is not proportional to the damage caused. Commissioner Baney asked if Mr. Doty has checked with counterpart agencies around the state on how many have capital improvement projects. Mr. Doty stated that he does not know, but guessed approximately 30 out of 36 counties probably do not have capital projects. Without PILT, his department wou ld have n o capital improvement projects either, as the department's operating revenue would be short of the required budget. Minutes of Budget Meeting—Natural Resources —Road Department—Community Development Wednesday, May 27, 2015 Page 4 of 7 COMMUNITY DEVELOPMENT DEPARTMENT Nick Lelack presented a Power Point, a copy of which is attached for the record. Discussion took place concerning the new software product-- Accela: this software allows homeowner to schedule an inspection on-line. Currently 40+ agencies within Oregon are running Accela system, and eventually all 102 should be using the system. Previously outgoing funds were allocated to the IT Department for the old system; IT will no longer be the technological source for this product; therefore, that money will be seen within the CDD budget in the future. The department is becoming more technically efficient; even their vehicles have printers that allow inspectors to print off inspection reports for homeowners or contractors. Mr. Lelack stated that within his presentation, he included information that showed no funds in the 340 fund, replacement of vehicles. Commissioner Baney noted that the vehicles CDD utilizes require a lot of driving. Mr. Lelack said that the fleet will be switching vehicles that show to a better value for fuel and efficiency compared to the current trucks used. The Department would like to purchase Ford Escapes for this purpose. Commissioner Baney asked what the reserves were in 2006; she was advised that across all reserve funds, there was between $5-6 million. Commissioner Baney asked about the possibility of sharing office space with the City of Bend for permitting purposes. Mr. Lelack responded that this has been discussed, but the City of Bend is located near their Legal Counsel and moving would be an issue for them. Brog Stenman, Chairperson for the Historical Landmarks Commission, stepped up to present information on the Historical Society and issues within the County. Last fall the County Commissioners were asked to increase funds within CDD to support Preservation of Landmark funding. Mr. Stenman noted that improvement is necessary to historical preservation efforts within the county. He gave an example of Pima, Arizona, where there is a lot of history; but Deschutes County has not preserved any and as a result there is little to no historical protection. Within the last 50 years, history within the County evolved and he feels they need to protect the culture and recreational history. There is value in leveraging history within the economy to an area that protects their history. Minutes of Budget Meeting—Natural Resources —Road Department—Community Development Wednesday, May 27, 2015 Page 5 of 7 He would like to see a development strategic plan for historical preservation. He feels the need is there to update the historical inventory (currently at 40 or so designated sites), but these have not been reviewed. He does not feel this list is adequate, and no new sites have been added to landmark inventory. The Landmarks Commission needs to increase collaboration with Deschutes County. Currently the cities of Bend and Redmond have their own historical preservation, but they also need to collaborate and work together from a County standpoint. He suggested other items to consider: • Improve management of historical property management; • Improve and increase the County's story map to give public information; • Expand historical preservation; and • Add staff within the County to serve the public. Commissioner Baney thanked Mr. Stenman for bringing information to the Budget Committee, asked if there were any grants or volunteer opportunities to bring staff on that can be funded as other than a County expense. He was asked how are other communities are doing this. Mr. Stenman responded that there are no grants available; and if services were contracted out, there would be a continuity issue. They are looking for a limited term position, part-time for a set number of years. Mike Maier asked how closely the Historical Landmark Commission works with the Historical Society. He indicated that there are 40 landmark sites within the County, including Sisters, including private residences, structural landmarks and trails. Mr. Stenman stated that the Commission works closely with the Historical Society regarding preservations and records. Some historical sites within County are on the National Register as being of historical value, and they are protected much more strongly with this designation. Commissioner Baney proposed that the Board of Commissioners get together with the Historic Landmarks Commission to discuss issues for next fiscal year. They could extend the invitation to the meeting to other jurisdictions as well. Being no further discussion, the session ended at 3:18 pm. Minutes of Budget Meeting—Natural Resources —Road Department—Community Development Wednesday, May 27, 2015 Page 6 of 7 DATED this ?It?" Day of 2015 for the Deschutes County Board of Commissioners _ %f'(),/),a70,t4 Anthony DeBone, Chair CLL., £Lr- Alan Unger, Vice Chair ATTEST: , rliaa_ $11,(At,ti. Tammy Baney, Co ' issioner Recording Secretary Secretary Minutes of Budget Meeting—Natural Resources --Road Department—Community Development Wednesday, May 27, 2015 Page 7 of 7 BUDGET COMMITTEE AGENDA Wednesday, May 276, 2015 Program Budget Tab/Page 9:00 AM • Reconvene the Deschutes County budget meeting 9:00 - 9:30 AM Fair and Expo Center (Funds 617-619 and 601) 4/ 153 • Introductions • Budget discussion 9:30- 10:00 AM County Assessor's Office (Fund 001-02) 4/ 125 • Introductions • Budget discussion; Special Requests 14/395 10:00- 10:15 AM Break 10:15 - 10:45 AM County Clerk's Office (Funds 001-05,001-06 and 2181 4/ 131 • Introductions • Budget discussion; Special Requests 14/399 10:45 - 11:45 AM Solid Waste (Funds 610-614) 4/ 175 • Introductions • Budget discussion; Special Requests 14/439 11:45 - 12:30 PM Elected Officials Compensation Committee (Lunch -Discussion) 12:30- 1:00 PM Natural Resources Protection (Funds 326-327) 4/ 171 • Introductions • Budget discussion 1:00 —2:00 PM Road (Funds 325,328-340) 4/ 159 • Introductions • Budget discussion 2:00 -2:15 PM Break 2:15 - 3:15 PM Community Development (Funds 290-303) 4 / 139 • Introductions • Budget discussion; Special Requests 14/425 C Page 1 -1-.Y v ti r 7,�JS ` Z 0 > F- zw H Emil D 2 0 W 0 1- UJ CC LO 0 CC 0- 0 0 a W 01 UNI CL N F- W . 1- >- = Ci 2 < i CI 2 2 U 0 Q (I) O W 0 CC 0 0 03 I MIR , t , , , • < f,' ' I' ■ ‘i e AtikeS00161441610111,2.!,,,,,at:4,11,46,,L$0,, ,.,,,t,!,, A...,,' *,14~1}01167 i 'k:'''' r ECE ii ! ; ; 4 : J% 1111 A 4 t 't4.' 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Departnierit Pioiioced Budget F '1115 1F) • Agenda Trends, Forecast &Variables Proposed Revenues & Expenditures Reserve Funds & Debt Reduction Funds 296 & 297 4 , rd 1 5/27/2015 New Houses by Month 2005-2015 111111111 111.11 I I 1 I 11101111111111111 I I 1111111 111 11111 Ii h Total Single Family Home Permits 1,200 1,c)oo 815 Boo iv 665 319 Permits 600 July 1—Mayig,2015 593 I 400 t 320 324. 319 io 166 o 1 2./ 111 1,00 1 0 11 ^ 1,9ocb 0 .0.9 15 10 s? "r3 '),"* 1.‘)(.? 1,3 19 'IP 1..° 1.'") 2 5/27/2015 Total Building Permits ,soo 1,nnr, 1.924 1,831 1,721 "Si 1,708 1,059 Permits 1,500 July 1—May 19,2015 1,183 971 1,059 1,000 8 782 838 630 614 650 500 y0�� dory ,h0�6 �OQh 6 ry6' .,Opp ^J New Houses by Year 2005-2014 2,500 0) 0 2,000 2 a Z 1,500 0 4— CU 1,000 500 Deschutes CU 0 Sisters 1005 2000 7007 1004 2009 1010 2011 2012 2013 2014 • Deschutes County Bend Redmond Sisters 3 5/27/2015 A New Normal? Coordinated Population Forecast 2015 r '1hrol.Vh .w, 2065 Deschutes County Ur%an f r.n•nI, 7cund.!ry tucu7 h been t eemie UGhs �{"'i1:∎ll,itirr�l art.reet!) ... r.re.mtiM 4 5/27/2015 Figure 1.Historical and Fareceat Populations,and Average Annual Growth Reel{AAGR)for Deschutes County and its SuIs-Areas Historical Forecast AAGR AAGR AAGR 2000 2010 (2000-2010) 2015 2033 2065 (2015-2035) (2015.2065) IJeschutes County 1733,357 157,713 1,2% 170,C0t; 2491}3! ;97345 1.9% 1.2% Bend' 52,041 76,858 4.781. 65.737 132,209 194,793 2.3% 1.3% La Pine 899 1,303 6:3% 1,58; ;5,014 5,835 3.9% 2,2% Redmond 15,534 24,508 55% 27,715 39,311 64,725 l8% 1.13% Sisters 961 2,039 71?0 2,315 4.1r, 3,212 3.2% i 3% Otrtxrtlu 531 l3s, 11.941 `01,15 04 39,153 69.421 0-1.li5 1 1".': 11.7'k Population growth of i6 c,uo over 20 P s (0) 4 persons per household 28 new homes per month for increased population 4 replacement dwellings per month Total: 2 new homes per month on average (current volur-ne = (3 new homes per month) Hotvever .. housing units outpace population growth, Figure 9.Deschutes County and Sub-Areas--Total Housing Units AAGR 2000 2010 (2000-2010) Deschutes County 54,583 80,139 3.93E Ben& 22,511 36,117 4.8% La Pine 523 942 6.1% Redmond 6.373 11,092 5.7% Sisters 483 1,109 8.7% Outside UGBs 24,693 30,879 2.3% Sources U.S.Census,Bureau,2000 and 2010 Censuses For simplicity each I.CA 15 referred to by its primary city's name. 5 5/27/2015 However... housing units outpace population growth, persons per Household and occupancy rates are caecreasirly, Figure 10.Deschutes County and Sub-Areas—Persons per Household(PPI4)and Occupancy Rate Persons Per Household(PPH) Occupancy Rate Change Change 2000 2010 2000-2010 2000 2010 2000.2010 Deschutes County 2.5 2.4 -2.5% 83-5% SUCK -3.6% Bend' 2.4 2,4 -1.2% 93.6% 88.0% -5.5% La Pine 2.2 2.3 6.1% 76.7% 74.1% -2.6% Redmond 2.6 2.6 1.6% 94.3% 90.7% -3.6% Sisters 2A 2.4 -0.4% 81,4"a 7fr a4'•, -6 En, Outside UGBs 2.6 2.4 -5.6% 716% 670% -4.8` Arurces:U 5,census du reau.2000 and 20101-rnvases(air elated by Papulotian..Cne&,v 1,tr+rrr fP5f 1 'for simpikitneaca UOBisre/erred to by,t1 pennon,ntv'sname. However._ housing units outpace population growth, persons per household and occupancy rates are decreasing, and ,n-rnigration is aid to forecast. Assumptions for the County and Larger Sub-Areas Migration is the most volatile and challenging demographic component to forecast due to the many factors influencing migration patterns.Economic and social factors—such as employment,educational opportunities,housing availability,family ties,cultural affinity,and natural amenities—occurring both inside end outside the study area can affect both directionality and volume of migration.Net migration rates osti rlhan$e in line with historical trends unique tc Deschutes County.Aim net wsl-m,grahan of 6 5/27/2015 Other Variables.. . Building Services Contracts with Sisters& Redmond Spillover of Bend UGB amendment La Pine housing market Possible new rural buildable land supply Caldera Springs Annexation Goal si Exception Thornburgh appeal outcome Miller Tree Farm Cluster Development New proposals... Budget Proposal 7 5/27/2015 Revenue & Staffing Resources 4,476,211 4,457366 4914,977 6,230,219 7,213,683 Requeemencs 4,476.213 4,457366 4,914,977 6,230,219 7,213,683 FY 16 Nece,v,n 5687 1,11 FY 16 PesF.'dc1 5181 1651 Commw+1ty Dewelnpmenl 21.60 28.60 29.00 33.00 35.00 I Idh.led to very conservative revenue projections for P,' 2 YL budget preparation and adoption ;‘)1',projection is a significant increase over I r :; but modest increase over F'r zc revised projection Proposed ,.1`:; i r :. : a to cover inflationary costs Expenses Investments in efficiencies: Training • Example: Cross training building inspectors to conduct multiple inspections during each site visit;in-house ePermitting staff training Technology • Exam_ples: Computer replacements,tablets,vehicle printers,large monitors for ePlan review,replace PowerPoint projectors Overt due, Extra Help,Consultants to meet business needs and provide expertise • Examples: On call staff and overtime to meet business needs during peak periods,consultants for specific project(i e,US EPA Brownfield Grant) 5/27/2015 Expenses Increased business costs: Bank Card Charges to purchase permits Hearings Officer fees Indirect charges to other departments Time Management Leave(T ML)due to retirements of 3-4 long term employees Printing, binding, postage Operating at full staffing(no vacant, budgeted positions) `Jehiclot • Need to purchase 4 new vehicles(lack of funds to purchase) Reserve Funds & Debt Reduction Propose to allocate over si million to reserve funds,increases total reserve funds to 11,77';,]:>> ,..DD Feserve: s,t„zg 631 D[)Br: Idina IrproverrIPrit: `'e,O0() CDU Bc., ldcig Reserve: `;45,49' Comprehensive User Fee Study to be completed summer 2015 to position CDD for long-term financial sustainability(reserve funds), consistent level of services&cover actual cost of services Vehicle Maintenance and Replacement fund nearly depleted— propose to allocate an additional$3000 per vehicle to rebuild fund (b•),onn)� Paid off CDD Debt in 2015:A t T Reserve 59n,36o 1 payment remaining on CDD Building(CDD Dcht ervir_e .. I r6r„!z5) 9 5/27/2015 Fund 296 FY 2015: Budgeted $118,750 for septic system upgrade rebates. FY 2025. 15 rebates($3,75o each) in the amount of $56,250. Balance: $62,5 00 proposed to be carried over to FY 2016. Results: Increase the proposed FY 2016 budget from $37,500 to $62,500 to provide 16 rebates. Adjust contingency to$69,516 Fund 297 Beginning Fund Balance FY 2016: $321,500 Proposed expenditures: $15,000 Goal 11 Exception Traffic Study $54,824 Debt service on La Pine Sewer Bond Long term: Approximately$305,000 Fund Balance Annual debt service payments of$54,824 on approximately$770,000 debt. New Neighborhood SDC payments will determine debt repayment. 10