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HomeMy WebLinkAbout2013-05-20 Budget Meeting Minutes - PM Minutes of Budget Meeting Monday, May 20, 2013 - Afternoon Page 1 of 7 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 2 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 3 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 #2 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 4 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+/- 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 17th 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 5 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 dou ble 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 o f 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 ¾ 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 test ing 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 6 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%. 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 ofthe Road Department. DATED this /1/j. Day of ~r 2013 for the Deschutes County Board of Commissio.rers: Alan Unger, Chair TamqB~chair ATTEST SIGNATURES: Anthony DeBone, Commissioner ~~ Recording Secretary Minutes of Budget Meeting Monday, May 20, 2013 -Afternoon Page 7 of7 I I I ~, I I ~I I I I I , ':{l I II ~i l I I.II ' J I I - I I 1 , I : I ~i I I \ I I I~' Iv i I I I I I I I I I "'I'" , ~I :g l<I I c ; I :: \ I "iii ~I I I . ~I! I ! Q) ~\ I I I t'-I N I I I ~ I I ~I I ~I . ~~I I I I i I I I I I I I 1 11_ L~-LI I 7 I I I I I I I I I I 1 I r- I , M P­o N 0 N ~::E ::EQ.. >. I 10 "0 c 0 ::E I 1 I I I I t: ~ --= Q) "~ Q) ct ~ ~... Q) ~I"'0 ~::J I al I I '" '" I ~ "0 1 "0 10 I "iii I I ~i I =tt: I Q) I ]1 0.1 L .. -+ .. t --+ t 1­ t • + i PaS!e # of BUDGET COMMITTEE AGENDA Monday, May 20th , 2013 9:00 AM 9:00 -9:05 AM 9:05 -9:10 AM 9:10 -9:20 AM Program Budget TabfPage • Elect Chair 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 Sunriver Library County Service District 13 1 445 (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 Sunriver Service District (Budget Committee­7/310 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 20th , 2013 9:20 -9:30 AM 9:30 -9:45 AM 9:45-10:00 AM 10:00-11:30 AM 11:30 AM -Noon 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 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: 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 • Committee votes • Close budget meeting Break Deschutes County • Open public meeting • Deschutes County Budget Proposal Capital Improvement Program Program Budget Tab/Page. 7/299 7/304 8/315 Page 2 BUDGET COMMITTEE AGENDA Monday, May 20 th , 2013 Noon -1:00 PM 1:00 -1:30 PM 1:30 -2:00 PM 2:00 -3:00 PM 3:00 -3:15 PM 3:15 -4:15 PM 4:15 -4:45 PM 4:45 -5:00 PM Lunch -Discussion Fair and Expo Center • Introductions • Budget discussion Natural Resource Protection • Introductions • Budget discussion Road • Introductions • Budget discussion Break Solid Waste • Introductions • Budget Discussion County Assessor • Introductions • Budget Discussion Public Comment Continue the Deschutes County budget meeting to Tuesday, May 21 st at 9:00 AM 1 Program Budget Tab/Page 4/144 4/164 4/152 4/169 4/117 Page 3 DESCHUTES COUNTY ROAD DEPARTMENT BUDGET COMMITTEE PRESENTATION MAY 20, 2013 Introductions Brief Department overview Business Element Review Budget Philosophy Discussion Performance measures – how they relate to County goals. Budget Review: Revenues Expenditures Other Funds Q/A ? ROAD DEPARTMENT BUDGET PRESENTATION AGENDA We are Asset Managers We are System Operators Maintenance Professionals DEPARTMENT COMPOSITION THE FOUR DIVISIONS OF THE ROAD DEPARTMENT Operations and Maintenance Fleet and Equipment Engineering, Surveying, and Traffic Safety Administration 52.75 Full Time Employees (FY 14) and 15+/- Contract Seasonal Employees Mission: Maintain and Operate County Road Network Sub -Mission (Other Services): County Vehicle Fleet and Maintenance Services (Non -Sheriff) County Surveyor Services Noxious Weed Control – Support of Natural Resources Department (modified role in FY 14) Maintenance Services for Other Agencies Paved Centerline Miles: 700+/- Non -Paved Centerline Miles: 200+/- Roadway Asset Value: $400,000,000 +/- Registered Vehicle Count in DC: 200,000 +/- Department employees: 52.75 (4.0 Surveyors Office) DEPARTMENT OVERVIEW Maintenance Pavement Management Program Signing/Striping Vegetation Management Shoulder Maintenance Bridge Maintenance Operations Snow/Ice Roadside Hazards Event/Incident Response Fleet/Equipment Project Development Capital Projects Major Maintenance Safety Improvements Modernization MAJOR BUSINESS ELEMENTS OF THE ROAD DEPARTMENT Focus Area #1: Pavement Management Program Focus on maintaining an investment level that will sustain the quality of the existing pavement. Recognize that failure to sustain the existing pavement results in higher maintenance costs to sustain the pavement condition at a lower level. Avoid “balancing the budget” via the PMP. BUDGET PHILOSOPHY FOCUS AREA #1 Focus Area #2: Minimize Personnel Expense Maintain (or achieve) minimum staffing levels to support our primary seasonal business elements consisting of the spring/summer pavement maintenance program and winter snow/ice operations. Recognize that personnel expenses increase at a rate higher than that of revenue. Maximize use of contracted work outside that of core area business elements and what can be accomplished by internal forces during shoulder seasons. BUDGET PHILOSOPHY FOCUS AREA #2 Focus Area #3: Capital Projects Develop a Capital Reserve (SDC and non -SDC resources) to leverage as grant match to the greatest degree possible. With PMP as first priority for Operating Revenue, direct additional non - operating revenue (SRS extensions, etc ) to Capital Reserve . Examples: Skyliners Road, Tetherow Bridge, etc. BUDGET PHILOSOPHY FOCUS AREA #3 PERFORMANCE MEASURES AND COUNTY GOAL RELATIONSHIP County Goal: Economic Vitality – Promote policies and actions that stimulate economic development. County Objective #1: Provide safe and efficient infrastructure that supports local economic opportunities and livable communities. Performance Measure #1 – Pavement Condition Index (Quantitative): Report the overall average Pavement Condition Index (PCI) of the county paved road network. The PCI is a measure of the quality of pavement ranging from 0 (completely failed) to 100 (new surface). A PCI greater than 70 is considered “good” and optimum maintenance efficiency occurs within the low to mid-80s range. FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Target 73* 76* 80* 78* 80 80 Performance Measure #2 – Percent of roads rated good or better (Quantitative): Reports the percentage of roads with a PCI of 70 or better. This measure, in concert with the overall PCI rating, provides another metric by which to measure the quality of the pavement asset and whether or not improvement, sustainability, or regression is occurring across the entire system. FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Target 60.1%* 68.6%* 73.4%* 72.0%* 86.4% 87.5% PERFORMANCE MEASURES AND COUNTY GOAL RELATIONSHIP Performance Measure #3 – Percent system resurfaced (Quantitative): Reports the percentage of system receiving a pavement maintenance treatment in a fiscal year. This metric assists with comparison of actual maintenance work performed versus ideal maintenance intervals (ie, chip seals last 7 years, therefore 1/7 th (or 14%) of the network should be treated annually). FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Target 12.8% 11.3% 10.9% 13.6% 11.5% 14.0% Performance Measure #6 – PCI Sustainability Ratio (Outcomes): Reports the ratio of pavement preservation investment divided by the “system needs” investment required to sustain the PCI at its current level. The FY 13 PMP model estimates an annual average “system needs” of $5.15M investment necessary to sustain the PCI over a 5-year period. The FY preservation investment was $4.3M (83.5% sustained). The PMP model estimates a 0.1 PCI point degradation (or increase) for every $250,000(+/-) subtracted (or added) to the annual pavement preservation investment (outcome measure). The goal of this PM is 100%, the target is improvement or upward trajectory. FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Target n/a n/a n/a n/a 83.5% 85% PERFORMANCE MEASURES AND COUNTY GOAL RELATIONSHIP County Goal: Effective Service Delivery – Promote confidence in government by ensuring fiscal responsibility, openness and accessibility in delivery of services: County Objective #5: Ensure accurate and timely delivery of public services. County Objective #2: Support and promote “Every Time” Customer Service Stds . Performance Measure #4 – Preventative maintenance ratio – Vehicle Maintenance (Quantitative): Reports the percentage of preventative maintenance related work orders versus total work orders performed. This PM provides an indication of the health of the County fleet and the effectiveness of the Vehicle Maintenance program. FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Target 23% 21% 24% 23% 25% 30% Performance Measure #5 – Complaint based call volume ratio (Qualitative): Reports the ratio of complaint based calls as a percentage of total call volume. Provides an indication of customer service efforts and satisfaction levels. FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Target n/a n/a n/a n/a n/a >5% Total Resource Obligation: $20.97M ($19.25M in FY 13) Significant carryover (Beginning Working Capital) from FY 13 Pavement overlay: $1.4M (carried forward into FY 14 overlay line) Unbudgeted SRS Revenue: + $869,000 (carried into FY 14 as Capital Reserve) Other Observations: Conservative State Highway Fund allocation estimate in FY 14 (-2.2% from ODOT FY 13 estimate, +1.0% more than “actual”) SDC Transfer of $400,000 (partial Skyliners Road contribution - pending BOCC SDC methodology review) Additional revenue via Local Government partnerships (+$305,000 from FY 13) (City of Bend, Redmond chip seal, striping, etc ) SRS Extension is not budgeted. Estimate of $359,000 in revenue based on actual timber harvest allocation, USFS. (-$906,000 from FY 13) BUDGET REVIEW: RESOURCES (+$) OPERATING REVENUE 10-YEAR CYCLE Operating Revenue: State Highway Fund, STP Funds, SRS/Timber, Solid Waste Transfer, Mineral/Geothermal -$800,000 OPERATING REVENUE VS CPI VS ASPHALT (FACTORED GROWTH FROM 2004 BASE YEAR) Pavement Management Program: Total investment = $4.1M to County System (80% sustainable – full system) Chip Seal: 91 miles (County). A +35% increase from prior 5 -year average ($2.0M) Overlay: $1.9M investment (per PMP model) Projected PCI: 80 (currently 80) Personnel: Reductions through attrition (2.0) and layoff (1.75) in FY 14 Personnel expenditures held at overall +1% increase despite PERS, Health Insurance and COLA increases Layoffs proposed within Fleet/Equipment (1.0 FTE) and Administration (0.75 FTE) Ops Division can no longer support personnel reductions without compromising core business areas (Pavement maintenance and snow/ice response). BUDGET REVIEW: EXPENDITURES (-$) Equipment Investment: Total investment =$460,000 Sustained reduction from FY 13 (-25%) Some refurbishment Supports primary business elements Projects Skyliners Road Reconstruction New 10% match requirement $875,000 in FY 14 (may amend agreement to FY 15) Bailey Road Guardrail: $62,000 Initiation of sign retro -reflectivity project (+25,000 expenditure in FY 14). A multi -year project. Tumalo Trail: $185,000 grant budgeted NW 17 th Street -Negus Road FDR (design only in FY 14) BUDGET REVIEW: EXPENDITURES (-$) NEW EQUIPMENT Pneumatic Roller $67,000 REPLACEMENT EQUIPMENT Vehicles / Pickups (1) $24,000 Hot patch with no chassis $85,000 Powered street sweeper. $50,000 Pneumatic roller $67,000 Lube Truck Chassis and refurb. $110,000 Crack Sealer $57,000 Total $460,000 # Title Purpose Function 328 County Surveyor Fund Survey Fee Collection Transfers to 325 Fund for County Surveyor related expenses 329 Public Land Corner Preservation Filing/Recording Fee Collection Transfers to 325 Fund for County Surveyor related expenses 330 Road, Building, and Equipment Repository for annual capital outlay contributions and purchasing. Accepts Transfer from 325 Fund. Budgeted capital outlay procurement (equipment) 335 Road Improvement Reserve Holds development contributions for future road improvements Transfers to 325 Fund when specific projects are constructed. 336 Transportation SDC Repository for Transportation SDC Collections Transfers to 325 Fund when specific SDC eligible projects (per CIP) are constructed. 340 Vehicle Maintenance and Replacement Accepts County Department contributions for annual vehicle maintenance and replacement. Transfers to 325 Fund as necessary to maintain and procure fleet. 430 Local Improvement District Funds design/construction of Local Improvement Districts Transfers to 325 Fund when LID projects are initiated and constructed. ADDITIONAL DEPARTMENT FUNDS QUESTIONS