MINUTES OF THE METRO COUNCIL BUDGET & FINANCE COMMITTEE

Wednesday, February 14, 2001

Council Chamber

Members Present:  Susan McLain (Chair), Carl Hosticka (Vice Chair), Bill Atherton, David Bragdon, Rex Burkholder

Members Absent:   Rod Monroe, Rod Park

Chair McLain called the meeting to order at 2:10 PM.

1.  Consideration of the Minutes of January 24, 2001 Committee Meeting.

2.  2001 Committee Work Plan and Budget Hearing Schedule

3.  Budget Note Update

Cherie Yasami, Administrative Services Department (ASD) Analyst, and Peggy Coats, Council Analyst, reviewed Status of Budget Note, on RACC funding. A copy is included in the public record of the meeting. Councilor Bragdon asked if rents to arts-related groups were comparable to other cities of similar size. Mark Williams, MERC Director, responded that for the primary users Portland charged the lowest fee in comparable markets, while it charged the highest fees for other users. Councilor Burkholder asked about the $600k RACC received from the City of Portland. Mr. Williams said that RACC had a contract with the City of Portland.

Chair McLain opened a public hearing.

Alice Norris, 620 SW Main, Portland, Regional Arts and Culture Council (RACC), spoke to the importance of Metro continuing to contribute funds to the organization. Councilor Burkholder asked what Washington and Clackamas Counties contributed. Ms. Norris said RACC received $25k from Washington County and $75k from Clackamas County and used the Metro contribution to cover the shortfall in those counties. Councilor Bragdon was concerned that Metro funds, collected from Multnomah County residents, were only being used in the other two counties. Ms. Norris said it was because the needs in those counties were beyond their contributions. Councilor Bragdon was troubled that Multnomah County residents paid without getting any benefit back from their contribution. Chair McLain closed the public hearing.

Jennifer Sims, ASD Director/CFO, reviewed the REM Budget Notes memo. A copy is included in the public record of the meeting. Councilor Burkholder asked for a time estimate of how long it would take to implement sustainable practices at Metro, and if the time it would take was a part of the staff’s job description. Katie Dowdall, REM Enhancement Coordinator, said it was, and that next year awarding grants would take less staff time since the process was now in place. Councilor Bragdon requested the REM team share their information with Council at a Council Informal meeting.

Chair McLain asked what sort of advertising was planned for recycling events. Ms. Sims said Lisa Hyde and Scott Lang had developed an education and promotion schedule. Ms. Hyde said there would be 35 events in a 52-day period that would be advertised in The Oregonian and other local papers. The multi-year program was designed to target specific neighborhoods with community newsletters and neighborhood associations, as well as schools, churches, etc.

4.  Ordinance No. 01-888 For the Purpose of Amending Provisions of Metro Code Chapter 6.01 Relating to the Metropolitan Exposition-Recreation Commission Regarding Powers, Budgets and Terms of Members.

Dan Cooper, General Counsel, spoke to the ordinance.

Chair McLain opened the public hearing.

Larry Harvey, Tri-County Lodging Association (TCLA), PO Box 2534, Tualatin, noted that TCLA’s greatest concern was good business management so that decisions could be made quickly, and saw nothing in the ordinance that impeded that process. He noted that TCLA was co-sponsoring a Young Artists performance with the Oregon Symphony on April 13. Chair McLain closed the public hearing.

5.  Ordinance No. 01-889 For the Purpose of Amending the FY 2000-01 Budget and Appropriations Schedule and Transferring $2,500 from the Council Office to the Office of the Auditor.

John Houser, Council Analyst, spoke to the staff report on the ordinance.

6.  Ordinance No. 01-891 For the Purpose of Adopting the Annual Budget for Fiscal Year 2001-02, Making Appropriations, and Levying ad valorem Taxes, and Declaring an Emergency.

Ms. Sims spoke to the General Fund and Andy Cotugno, Planning and Transportation Director, spoke to the Community Planning budget. Copies of both presentations are included in the public record of the meeting. Councilor Atherton asked if the excise tax of approximately $3.5-$4m was spent to meet Metro’s Charter obligations. Mr. Cotugno responded that the excise tax allocated to the General Fund was all targeted for Planning. It included approximately $2m to the growth management area, $1m as the local match in transportation funds and $400k allocated to the Data Resource Center. All excise tax funds would be spent on planning-related functions in support of the Metro Charter mandate.

Councilor Hosticka asked where the Materials & Services allocation was spent. Mr. Cotugno said most was spent on professional services, i.e. for impact statements and consultant support on Goal 5 inventory, or its peer review. It included day-to-day expenses and land acquisition under the TOD program grants for land acquisition. Land was purchased by Metro in order to promote development, e.g. purchasing land around a MAX station that was then sold back to the private sector at a discount in order to encourage development. Money from such sales went into the Enterprise Fund. Councilor Burkholder asked what the cost for applying for and administering grants was. Mr. Cotugno said it was approximately $150k and was listed under management and coordination.

Heather Nelson Kent, Regional Parks and Greenspaces, spoke to the Park budget. A copy of the presentation is included in the public record of the meeting. Councilor Burkholder asked if there was a plan in place for Metro-held lands that might not meet Metro’s regional goals. He asked that the committee look at alternative-use scenarios and how that might effect the budgetary issues that Metro faces. Ms. Kent suggested that cemeteries like Lone Fir might not meet these goals, but Metro was in the parks business unless or until the Council decided otherwise. Chair McLain reminded all departments to submit their presentation in writing as a handout to the committee as outlined in the Chair’s January 23 memo. A copy of the memo is included in the public record of the meeting.

Pete Sandrock, Executive Office Policy Analyst, spoke to Executive budget. A copy of the presentation is included in the public record of the meeting. Councilor Atherton asked why there was a 54% increase in public affairs and government relations. Mr. Sandrock responded that the increase was for the public involvement process.

Jeff Stone, Council Chief of Staff, spoke to the Council budget. A copy of the presentation is included in the public record of the meeting. Councilor Hosticka asked about the cost and staff time associated with redistricting work. Mr. Stone said it would be absorbed into the workload as a staff assignment along with normal Councilor-generated work. Chair McLain noted that the next meeting would begin with any questions regarding the ASD Financial Planning General Fund handout that had not been covered today. She noted that the proposed budget amendment form had been streamlined from last year. All budget amendments should be presented in this form. A copy is included in the public record of the meeting.

7.  Councilor Communications

Chair McLain adjourned the meeting at 4:35 PM.

Respectfully submitted,

Pat Weathers

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE MEETING OF FEBRUARY 14, 2001

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

i:\minutes\2001\budget&finance/021401bdm.doc