MINUTES OF THE METRO COUNCIL BUDGET & FINANCE COMMITTEE

Wednesday, November 29, 2000

Council Chamber

Members Present:  Susan McLain (Chair), David Bragdon, Rod Park, Ed Washington

Members Absent:  Bill Atherton (Vice Chair), Jon Kvistad, Rod Monroe

Chair McLain called the meeting to order at 1:41 P.M.

1.  Consideration of the Minutes of November 15, 2000 Committee Meeting.

2.  Response to Budget Notes

Tony Mounts, Administrative Services Department (ASD) Financial Planning Manager, reviewed the written response to Budget Notes 4-6. A copy of the memo, dated 11/27/00, is included in the record of the meeting. Councilor Bragdon asked if past audits have uncovered irregularities. Jennifer Sims, ASD Director/CFO, responded that issues had been uncovered and that the audits were a worthwhile investment. She agreed with Chair McLain that one of the most notable discoveries was the Hillsboro Landfill. The audit was an opportunity to review the operation’s books, check that required fees were up to date and monitor the volumes reported for accuracy in classification of waste. Chair McLain complimented staff for the lucid style of the budget notes and asked staff to use them as a model for future budget note reports.

3.  Resolution 00-3010 For the Purpose of Adopting the Capital Improvement Plan for Fiscal Years 2001-02 Through 2005-06

Karen Feher, CIP Coordinator, reviewed the Metro CIP Process. A copy of the slides, Overview Fiscal Years 2001-2002 through 2005-2006 Proposed Capital Improvement Plan, a report, Proposed Capital Improvement Plan and a memo, Changes to the Proposed CIP, are included in the record of the meeting. Chair McLain asked for clarification regarding the Open Spaces Acquisition balance. Ms. Feher noted that the balance shown did not include the current year 2000-2001 budget of $26 million.

Tony Vecchio, Zoo Director, reviewed the Zoo CIPs. Peggy Coats, Council Analyst, noted that there were no Zoo CIPs listed after 2003-04 and asked if there were plans for any repairs or renovations beyond that point. Mr. Vecchio responded that the Zoo had a 25-year CIP that was not listed. Ms. Feher suggested that one reason was the difficulty in pricing projects out beyond three years. Chair McLain said the Committee would like to see at least the broad outline of future plans. Ms. Coats asked why the Great Northwest Project figures were not included for 2004-05. Mr. Vecchio said that he would provide those figures.

Councilor Park suggested a dash rather than zero might be used throughout the document to indicate where data was incomplete rather than inactive, e.g. in the case of the Great Northwest project. Mr. Vecchio said he would review the document and replace the zeroes in the appropriate places. Chair McLain said that whatever method was used should be used as the standard for the agency to maintain consistency and footnoted for the convenience of its readers. She asked staff to follow-up on this effort. Michael Morrissey, Council Analyst, asked if it might be better to differentiate between grant and donation money. Mr. Vecchio said there was considerable overlap between the two. A donation from a foundation was a grant, while a comparable donation from an individual was a donation; both were a product of the Development department. Chair McLain asked staff to review this item for consistency throughout the agency as well.

Mark Williams, MERC General Manager, reviewed the Metropolitan Exposition-Recreation Center (MERC) CIPs. Councilor Bragdon asked what the method was by which MERC and the property’s owner came to agreement on a project, e.g. the Portland Center for the Performing Arts (PCPA). Mr. Williams said the approved Metro Budget was sent to the City of Portland commissioner in charge of the facility, (currently Dan Saltzman), under an Intergovernmental Agreement (IGA). All PCPA projects were thoroughly reviewed by the PCPA Advisory Committee, which was appointed by the City of Portland, in accordance with the IGA. Councilor Park asked what the projected payback period was on the stage lighting replacement. Mr. Williams said he would have to get back to him with that information. However he said that the new lighting would be more cost efficient and would require less maintenance.

Councilor Washington asked when the tattered Keller Auditorium signage would be replaced. In addition he thought the building exterior showed signs of age and needed a cleaning. Mr. Williams said the signage was on order; the delay was due to the artisan’s busy schedule. He agreed that both the inside and outside of the Auditorium needed refurbishing. He believed it was scheduled as a part of the capital maintenance figure, but would double check and report back. Ms. Coats noted there were plans for a west entry remodel of the Arlene Schnitzer Concert Hall. As it was on the Historic Register, which had rules requiring any exterior rehabs to comply to historic preservation code, she wondered if these codes had been addressed in the project. Mr. Williams said the plan was to work with the City to reconfigure the street to cut down on the damage caused by trucks loading and unloading into the facility. The only work on the facility was to refurbish the existing damage to the signage, however, he would consult staff to ensure that preservation standards were addressed.

Heather Nelson Kent, Parks and Greenspaces, spoke to her department’s CIPs. Chair McLain asked if the Smith and Bybee Lake Trust Fund project for dam removal included the water facility control system. Ms. Kent said it did. She showed photos of Oxbow Campground and Elk Meadow sanitary improvements. A copy is included in the public record. Councilor McLain asked if this meant there were facilities now at Elk Meadow. Ms. Kent clarified that the drain fields were at Elk Meadow. After the system separated solids from liquid, the liquid was pumped up to the drain field. Councilor Washington asked what the life expectancy was for this sort of system. Ms Kent said she did not know what the life expectancy was. Councilor Washington asked and what the approval authority was. Ms Kent responded that the County approved the land use application for general land use, the City of Gresham approved the building permits and DEQ issued permits for wastewater. Councilor Park clarified that the City of Gresham was involved due to its contract with Multnomah County to oversee permits outside Gresham’s boundaries.

Terry Petersen, REM Director, reviewed the department’s CIPs. John Houser, Council Analyst, asked why costs of the Household Hazardous Waste facility at Metro Central appeared to have gone up about 40% between last year’s CIP and this CIP. Mr. Petersen responded with three reasons: 1). Staff had fine tuned costs in an effort to be more accurate, 2). Volume of waste was up at that facility due to REM scheduling more hazardous waste collection events, which in turn required more staffing and 3). Additional ergonomic improvements were added into the project. Mr. Houser asked about the decline in the Master Plan reserves in the third and fourth years. Mr. Petersen said he would check and get back to him. Mr. Houser asked if contributions to the annual Replacement and Reserve (R&R) would increase or decrease based on the latest review. Mr. Petersen said he had no reason to expect any changes.

Mr. Houser suggested that the trend over the past few years had been to increase. He asked how the estimate was reached for the treatment work at St Johns Landfill, as it was work not commonly done. Mr. Petersen responded that staff had made the estimate based on their design work. Chair McLain asked for assurance that REM and Parks were working closely together to coordinate projects such as dam removal, water treatment plant construction, reintroduction of mud flats and natural vegetation and reforestation at Smith & Bybee Lakes. She was concerned that a lack of coordination might cause problems and/or further expenses. Mr. Petersen assured the committee that REM’s work at the St Johns Landfill would not have a negative effect; the work being done would improve treatment of water going offsite. Staff was in close communication with neighbors and the Parks department on the dam removal. Parks was working closely with REM to address its concern that if the water flow changed in the north slough it could increase the erosion rate on the landfill. Chair McLain noted that it had been difficult to obtain the dike stabilization permits; she hoped to see both challenges and opportunities addressed in the CIP.

David Biedermann, Information Technologies (IT) Director, spoke to IT CIPs. Chair McLain asked about past software issues where PeopleSoft modules had never been installed for lack of adequate personnel. She asked for the status of this work. Mr. Biedermann responded that the work still remained to be done due to insufficient staff. Chair McLain asked how the need that caused the original purchase was being met. Mr. Biedermann said one module, Job Costing, was being done manually. The inability to install the Fixed Asset module called into question the agency’s ability to track fixed assets accurately in all departments. He assured the Committee that the licenses remained valid, but would require a fee to update when staff and finances permitted.

Ms. Sims addressed ASD CIPs. Chair McLain asked about the fire alarm system’s “inconsistencies”. Ms. Sims said the system gave accurate reports when tested with actual incidents, but sent false alarms intermittently to the fire department. It was determined that both the control panel and the wiring of the alarm devices were not functioning properly. Chair McLain noted that the roof at South Transfer Station had been replaced three times, apparently because the proper materials were not used until the third re-roofing was done. She attributed the problem to lack of prior research, and hoped that on this and all projects Metro would conduct a thorough review of available products before a purchase was made. Ms. Sims agreed.

Chair McLain asked at what times Council could expect to see project changes made, e.g. she did not recall being informed that the copier replacement in the Print Shop would not be done in FY 2000-01. Ms. Sims said it had been noted in the Budget Notebook that no projects would be done due to budget constraints. Council was notified twice a year: in the CIP Review and in the Budget Notebook. Councilor Bragdon asked about elevator work. Scott Moss, Assistant ASD Director, said ongoing maintenance of the elevators was under annual contract as a normal part of maintenance. Staff was reviewing redoing the insides of the elevators in the future. Mr. Morrissey asked how the estimated replacement cost figures for the building and garage were reached. Mr. Moss responded that $20 million and $6 million, respectively, were the figures used for insurance purposes. He was unsure of where the date of 2013 came from since he believed the building should last beyond that date. Ms. Sims clarified that Metro’s bonds would be paid off by that date. Chair McLain asked Mr. Morrissey to review the realistic life of the buildings and if monies should be set aside for its eventual replacement. Ms. Coats promised an executive summary of questions and responses.

3.  Councilor Communications

None

Chair McLain adjourned the meeting at 3:05 PM.

Respectfully submitted,

Pat Weathers

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE MEETING OF NOVEMBER 29, 2000

The following have been included as part of the official public record:

i:\minutes\2000\budget&finance/11290bdm.doc