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Approved Minutes - 2016-05-05 CITY OF LAKE OSWEGO 1v �� Budget Committee Meeting Minutes oR E G o� May 5, 2016 Members present: Kent Studebaker, Mayor David Berg, Chair Joe Buck Kathleen Taylor, Vice Chair Charles Collins David Beckett Jeff Gudman Steve Dodds Jon Gustafson Gerry Good Jackie Manz Scott Havens Kristina Soderquist Members excused: Skip O'Neill Staff Present: Scott Lazenby, City Manager; Jordan Wheeler, Deputy City Manager; Shawn Cross, Finance Director; Brad Stevens, Assistant Finance Director; Kam Frederickson, Budget Analyst; Erica Rooney, City Engineer; Anthony Hooper, Public Works Director; Ivan Anderholm, Parks Director; Bill Baars, Library Director; and Chip Larouche, Chief Technology Officer The Budget Committee meeting was taped and is online with supporting information. To view additional discussion, click on any online Interactive Agenda item in color to go to that point on the video. 1. Call to Order and Roll Call Berg called the meeting to order at 6:04 p.m. in the Council Chambers of City Hall. 2. Approval of Budget Committee meeting minutes for April 28, 2016 Gudman moved to approve the Minutes of April 28, 2016. Manz seconded the motion and it passed by a unanimous voice vote. 3. Public Comment (3 minutes each) Jeffrey Wiens, 785 9th Street, south of E Avenue. He stated that the water coming from the upper quadrant of E Avenue and 9th street is flowing down, often turning on E Avenue, and forms a lake that then drains into his and his neighbor's house like a creek. He asked that E Avenue at 9th be included on the CIP project that is already being formed for D Avenue. City of Lake Oswego Budget Committee Meeting Minutes of May 5, 2016 Page 1 of 5 Rick Nys, 13554 Rogers Road, Chairman of the Transportation Advisory Board (TAB), responded to Budget Committee request and returned with a refined list of potential projects to utilize some of the SDC funds. The revised list reflects working with TAB members and City staff. The Iron Mountain Boulevard project was removed from the top 10 list of priorities - as not all TAB members were in agreement on that project. Jim Fisher, 1023 O'Brien St., lives in the Hallinan neighborhood and asked the Budget Committee to consider purchasing the 1107 Yates Street 2-acre property and showed an aerial view of the property. He said there is a development proposal for the property but he is not clear what is occurring with that. The Friends of Hallinan Woods has worked with LO Watershed Council on restoring part of the property. Donald Mattersdorff 930 Bullock St., stated that in 2012 this property sold for$750,000. Then the new owner put it on the market for$1.9 million and it did not sell. He suggested it may be worth approximately $1.2 million now. Buck stated that acquisition of park land has other concerns beyond budgetary and stated that this type of request should go through the Parks Board and to get community support, as that is the Board that the City Council listens to in regards to park property. Mattersdorff stated he would go to the next Parks Board meeting. Mike Buck, 3155 Edgemont Road, commented on the parking needs in Lake Grove and referred to the Lake Grove Village Center Plan. He informed the City Council where the needs were and is also urging the Budget Committee to meet Lake Grove parking needs currently and for development-without being excessive. He noted that a staging area for Boones Ferry Road project construction is needed and perhaps that could be converted to parking at the end. He felt that some properties may not be available later to purchase for parking. John Ewert, 752 8th Street, submitted another letter for the Budget Committee from him and some neighbors prior to this meeting. He stated that he and neighbors were suffering from damage of water run-off. He stated the CIP funded a D Avenue project and requested that enough funding is dedicated, beyond the D Avenue project, for a project that extends in elevation up along E Avenue to cover his and some neighbor's houses. 4. Municipal Grants Wheeler stated that Budget Committee members Beckett, Collins, Havens, Soderquist and Taylor met with staff on May 3 to review the Municipal Grant applications. A list was presented that showed the organizations that the subcommittee recommended the Budget Committee award grants and allocate the $25,000 budgeted. Beckett moved to approve the use of the Municipal Grant funds in the budget as recommended. Collins seconded it and it passed 13:0 by a unanimous voice vote. 5. Puts and Takes Dodds stated that City Hall repairs is the highest priority after seeing a conditions report. The estimated costs previously provided from consultants for the repairs is $5 million. Lazenby added that in the 2016-17 budget the City transferred fund from the General Fund and other funds totaling $1,170,000 as a start to accumulate funds for the repairs. Dodds added a put to the list to take out a loan for the remaining $3,830,000 needed to fund the repairs and that was seconded by Good. Lazenby explained that for"economies of scale" the repairs were not scheduled for FY17 and the City was looking to do the repairs, including replacement of the City Hall skin, at the same time that the Police Station project occurs next door. City of Lake Oswego Budget Committee Meeting Minutes of May 5, 2016 Page 2 of 5 Gustafson added an item to the put/take list to dedicate 5% of Street Fund revenues to active transportation projects as identified in the TSP. Buck seconded it for the list. Good proposed and Havens seconded a take to decrease personnel FTE by 2% each of the next three fiscal years and that the 2016-17 decrease occur by 1-1-17. Berg felt that the Wastewater Fund's balance was high and suggested a take to rebate $10 per month to utility customers over the next three years. (He later revised that to one year 2017.) Taylor suggested if that was done then to possibly increase Surface Water fees by $10 per month -with so much need in surface water projects. Gudman agreed with Taylor and also suggested to see a plan for spending down the balance of the Wastewater Fund balance. Gustafson was concerned if a rebate occurred then the City would have to increase rates a much larger amount later for the unfunded projects in the CIP. Beckett proposed a take of$4,273,000 from the "general" departments to reduce the budget less than 2% below the prior fiscal year. He stated that staff may propose adjustments for individual departments for that total. There was not a second to add it to the puts/takes or vote on it. Lazenby provided background information and views of the Hallinan Woods Greenspace property discussed in public comment. Under the revised Sensitive Lands Code there is a restricted area along the creek. Gustafson thought this should go to the Parks Board before a vote is done to allocate any funds. He then withdrew his prior put to vote on this. 6. Deliberations and Votes The Committee discussed a couple options for funding $500,000 for wooden light pole replacements in George Rogers Park. (There was public comment on this item from the Parks Board at the April 28 Budget Committee meeting.) The original take suggested by Berg from the prior meeting was to reduce the transfers to the Capital Reserve Fund for City Hall repairs by ($500,000), but he accepted Lazenby suggestion below (option 1). Option 1) Lazenby suggested the funding option of reducing the transfer of General Fund monies to the Capital Reserve Fund by ($250,000); and re-prioritize maintenance projects in the Parks budget by ($250,000). Parks is also expected to have a higher carryover than budgeted that can be an added source of funding for maintenance projects. Berg moved to pay for the wooden light pole replacements with this this funding option. The vote failed 7:6 with Beckett, Berg, Collins, Good, Gudman, Soderquist, and Studebaker voting yes. Buck, Dodds, Gustafson, Havens, Manz, and Taylor voted no (needed 8 to pass). Option 2) Buck added a put to fund the light pole replacements by reducing the transfer of General Fund monies to the Capital Reserve Fund by ($250,000); and reduce the Street Fund capital budget for ($250,000) —from the additional $1.1 million that was previously directed to be placed into the Street 2016-17 Proposed Budget. Buck moved to pay for the wooden light pole replacements with this funding option and Dodds seconded it. The vote failed 5:8 with Buck, Dodds, Gustafson, Havens, and Manz voting yes. Beckett, Berg, Collins, Good, Gudman, Soderquist, Studebaker, and Taylor voted no. Gustafson moved to have the purchase of Hallinan Woods property go to the Parks Board to seek recommendation before it goes to Council and Manz seconded it. After discussion of who may go before the Parks Board he withdrew his motion on this item. City of Lake Oswego Budget Committee Meeting Minutes of May 5, 2016 Page 3 of 5 Manz moved to fund a $30,000 request from Hazelia Agricultural Heritage Trail group, from the Tourism Fund, for design work and signage for interpretive panels/historic story boards. Taylor seconded it and it passed by a unanimous vote of 13:0. Gudman moved and Berg seconded to approve a revised TAB list of projects for $474,500 already funded in the proposed budget. The vote passed unanimously13:0. Gustafson added a put for Willamette Falls Heritage Area Coalition (WFHAC) request for $5,000. He commented that WFHAC is the State of Oregon's first state heritage area and it includes Lake Oswego. Various local municipalities are contributing to this effort. Their current project includes interactive maps which would include Lake Oswego's heritage sites. He suggested that Tourism funds would be a better funding source then the General Fund. Gustafson moved to fund Willamette Falls Heritage Coalition $5,000 grant request from the Tourism Fund and Buck seconded it. The vote passed unanimously13:0. Gudman moved to fund George Rogers Parks Light poles $500,000 by reducing General Fund transfer to Capital Reserve Fund for City Hall repairs set aside by ($250,000); and fund the balance of the project from their existing proposed budget for maintenance projects. Studebaker seconded it and the vote passed 12:1 with Beckett, Berg, Buck, Collins, Dodds, Good, Gudman, Havens, Manz, Soderquist, Studebaker, and Taylor voting yes. Gustafson voted no. Dodds moved to vote on his put to take out a loan for the remaining $4 million needed to fund City Hall repairs. It was seconded by Good and the vote failed 3:10. Dodds, Good, and Havens voted yes. Beckett, Berg, Buck, Collins, Gudman, Gustafson, Manz, Soderquist, Studebaker, and Taylor voted no. Gustafson moved to dedicate 5% of Street Fund revenues to active transportation projects as identified in the TSP. Buck seconded it and the vote failed 5:8. Berg, Buck, Dodds, Gustafson, Manz voted yes. Beckett, Collins, Good, Gudman, Havens, Soderquist, Studebaker, and Taylor voted no. Good moved and Havens seconded to decrease personnel FTE by 2% each of the next three fiscal years and that the 2016-17 decrease occur by 1-1-17. The vote failed 5:8. Beckett, Berg, Good, Havens, and Soderquist voted yes. Buck, Collins, Dodds, Gudman, Gustafson, Manz, Studebaker, and Taylor voted no. Berg moved to recommended to Council to rebate wastewater bills $10/month in coming calendar by adjusting rates during Master Fees and Charges updates for 2017 - to essentially decrease bills overall by $1,560,000 for one year. Good seconded it and the vote failed 3:10. Berg, Good, and Soderquist voted yes. Beckett, Buck, Collins, Dodds Gudman, Gustafson, Havens, Manz, Studebaker, and Taylor voted no. Buck moved to vote on going to a 2-year biennial budget as recommended by the City Manager. The vote failed 4:9. Buck, Gustafson, Havens, and Studebaker voted yes. Beckett, Berg, Collins, Dodds, Good, Gudman, Manz, Soderquist, and Taylor voted no. Gudman moved and Gustafson seconded a recommendation to Council to initiate the process to review SDCs, particularly the charges and methodologies for Parks and Transportation (Street) SDCs. The vote passed unanimously13:0. City of Lake Oswego Budget Committee Meeting Minutes of May 5, 2016 Page 4 of 5 7. Approve Property Tax rates and Approve City Budget Berg moved that the City of Lake Oswego Budget Committee approve property taxes for the 2016-17 fiscal year at the rates of$4.9703 inside the LO School District and $4.5884 outside the LO School District per$1,000 of assessed value, and in the amount of $2,295,745 for the general obligation bond levy. Gudman seconded it and the vote passed unanimously13:0. Gudman moved to approve the City Budget for the 2016-17 fiscal year in the amount of $214,672,734 as Proposed, plus amendments made at this meeting. Good seconded it and the vote passed unanimously13:0. 8. Adjournment The meeting adjourned at 9:18. Respectfully submitted, Kam Frederickson /s/ Kam Frederickson Budget & Financial Analyst APPROVED BY THE BUDGET COMMITTEE: March 23, 2017 City of Lake Oswego Budget Committee Meeting Minutes of May 5, 2016 Page 5 of 5