MINUTES OF THE METRO COUNCIL BUDGET & FINANCE COMMITTEE

Tuesday, March 13, 2001

Council Chamber

Members Present:  Susan McLain (Chair), Bill Atherton, David Bragdon, Rex Burkholder, Rod Monroe, Rod Park

Members Absent:  Carl Hosticka (Vice Chair)

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

1.  Consideration of the Minutes of February 27 and 28, 2001Committee Meetings.

2.  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.

Chair McLain reviewed the Budget process. There were three stages: Stage 1 department presentations were done; Stage 2 had just begun with questions and issues for each department, and Stage 3 would be global questions for the agency as a whole. She noted that Friday, April 6 was the deadline for turning in amendments for examination April 11-12.

Pete Sandrock, COO, spoke to Executive Office Budget Answers to Council Analyst’s Questions . A copy is included in the public record of the meeting. Councilor Bragdon asked what would be displaced from the budget if corporate sponsorship could not be obtained for the UGB/Habitat Protection citizen involvement process. Mr. Sandrock responded that whatever was not sponsored would be reviewed; possible use of current funds earmarked for public involvement might be transferred to this project. Chair McLain asked if Mr. Sandrock would return to the Council if staff determined adjustments should be made. Mr. Sandrock agreed; however he said the budget line item was not broken down. The focus of Metro’s citizen involvement effort would be determined after sponsorships had been shopped around and it was known how much more money was needed for UGB/Habitat Protection.

Councilor Atherton asked what the Regional Directory cost. Mr. Sandrock said he would need to get back to the Committee with that information. Councilor Park clarified that he wanted to see where Executive staff felt citizen involvement emphasis should be put. Chair McLain directed Ms. Coats to review it when received. Councilor Monroe suggested that perhaps Mr. Sandrock’s former position should not be filled during the 18-month transition. Councilors Bragdon and Park agreed. Mr. Sandrock said he would return to the Council before any action was taken. Councilor Atherton asked about the document production costs of $63k. Mr. Sandrock said it included the Regional Directory, but primarily it was the approximate cost for restocking requested documents.

Andy Cotugno, Community Planning Director, discussed FY 2002 Budget Questions. A copy is included in the public record of the meeting. Michael Morrissey, Council Analyst, clarified that he felt some of the budget statements should be quantified. Mr. Cotugno said he would be happy to discuss tightening this material with Mr. Morrissey after the meeting. Councilor Burkholder asked about integration of the efforts on citizen involvement between Planning and Executive Office. Mr. Cotugno felt it was tightly integrated in order to have a single message. Chair McLain liked the organization chart. Chair McLain said that some of the Goal 5 work, i.e. legal work would be done by OGC; but she believed the $97k funding should stay in Community Planning. She directed Mr. Morrissey to make sure it happened.

Councilor Burkholder asked if a consolidation of services on Metro’s various sales activities, e.g. maps, contractor licenses and park passes was feasible. He felt some savings might be possible. Mr. Cotugno said anything document or map related was done in the DRC (Data Resource Center), but he would look into it. John Houser, Council Analyst, asked why a local match was not required for the congestion relief program. Mr. Cotugno said Metro spent minimal money, as most of the funds were Federal Transportation dollars; the belief was that Metro and the local jurisdictions spent comparable staff time. Mr. Houser asked if local jurisdictions who would benefit from the action plan would make any further contribution to cover Metro’s costs on ‘Big Streets’. Mr. Cotugno said ‘Big Streets’ would provide prototypes to be developed as case studies; however it was relevant to consider matching funds for corridor studies.

Mr. Houser asked if the action plan could be vetoed by the communities. Mr. Cotugno said it would follow the same model as on ‘Building Livable Streets’; where design guidelines were developed, not standards. Every corridor would be different. Councilor Burkholder suggested that templates for infill development were also needed. Chair McLain noted that the TOD-oriented development in District One should be an inspiration and a guideline. Mr. Houser asked about expectations for funding of second-generation projects. Mr. Cotugno said each project was different and it was difficult to estimate return; on the property at 60^th and Glisan $1.24 million was spent and recouped almost $1 million. On the other hand $100k was spent for a Buckman TOD easement with no return.

Mr. Houser clarified that the software costs for USDOT Transportation Model Improvement Program (TMIP) were not certain at this time, but he was certain it would not be higher. Councilor Bragdon expressed his support for TMIP. Councilor Park asked if Metro was a good candidate for this new modeling process. Mr. Cotugno said it was, but if it did not work the current Metro model would continue to work. Traditionally travel models were based on developing a zone system, much like a census tract. Trips to and from were estimated from the whole zone that might be a 40 square block area. The new models would be on a street frontage basis; every individual street produced trips onto that street, whether foot, bike or transit. It was a much finer level of detail.

Mr. Houser asked if the purchasing change for equipment reflected a change in agency policy in obtaining flex-leases. Jennifer Sims, ASD (Administrative Services Department) Director/CFO said it was a combined program, but the intent was to purchase equipment outright rather than by financing. Councilor Bragdon asked Mr. Cotugno to describe the Pleasant Valley work. Mr. Cotugno said Metro had received a $500k grant to pay for a consultant for jurisdictional support; Metro provided approximately .5 FTE staff for its work. He said Pleasant Valley was now concerned that they would run out of money before project completion and looked to Metro for aid; there were no more funds available. There was 18-months to run on a 24-month program.

Charlie Ciecko, Parks and Greenspaces Director, reviewed FY 2001-2002 Budget Questions. A copy is included in the public record of the meeting. He introduced Jeff Tucker, the new Finance and Budget Manager for Parks. Councilor Monroe asked when a decision had been made on the conditional use application for Howell Territorial Park. Mr. Ciecko responded staff was working with Multnomah County to create a park zone. In the meantime the conditional use application was pending in case the park zone does not meet Metro’s requirements. Councilor Park asked about Fairview’s concern with fee increases. Mr. Ciecko said that because Metro counted on grants by the Marine Board, staff was sensitive to fee increases at Chinook Lake, currently $4 vs. $3 at Blue Lake. The thought was to equalize the fees. He hoped to install an automated gate system to solve night-usage problems at Chinook Landing. Chair McLain summarized the discussion on Blue and Chinook Lakes: 1) the final decision rested with Council and 2) Mr. Ciecko would return to Council with his recommendation. Chair McLain requested staff make a list of long and short-term strategies on Park issues.

Councilor Burkholder said he was concerned with Metro’s portion of potential clean-up costs at Willamette Cove. Jim Desmond, Manager, said Willamette Cove cleanup might stretch over 10 years; the Port had agreed to pay a minimum of 90% of future clean-up costs. In addition if testing determined the Port to be fully responsible, it would pay 100% of costs. Metro’s cost cap was 10%. He felt the arrangement was the most favorable for Metro that could have been done. Councilor Monroe agreed. Chair McLain believed Risk Management had a plan in place to cover Metro’s 10% liability. She would check and report back to the committee. Mr. Morrissey said he was uncomfortable with the indirect cost increase of $153k. Ms. Sims responded data was based on 99-00 and was the most current data available to estimate 2002 costs.

Chair McLain asked staff to compare each department’s indirect cost application. Kathy Rutkowski, ASD Analyst, said approximately 1/3 of Parks funding came from the General Fund. When Parks interfund transfers went up $153k, 1/3 of that, $50k+ came from the General Fund to offset the cost. Mr. Ciecko said Mr. Tucker, who had extensive experience in this area, would review the system. Ms. Rutkowski said prior to the excise tax change received 1% of 8.5% tax generated by solid waste. Staff translated that to approximately 11.75% of 100%. The base amount allowed to be budgeted by the Executive Officer increased yearly. Staff used a CPI factor as a base and multiplied it by 11.75%; that was the amount of excise tax given to Regional Parks. Chair McLain asked staff to find a more understandable way of explaining this fee.

Jeff Stone, Council Chief of Staff, spoke to Questions and Issues Related to the Proposed FY 2001-02 Council Office Department Budget. A copy is included in the public record of the meeting. Councilor Bragdon noted that in a discussion with Mr. Cooper, Ms. Scott, Mr. Burton and Mr. Stone, Mr. Burton committed the monies associated with Mr. Sandrock’s old position to the transitioning effort. Mr. Stone agreed. Chair McLain clarified that 1) costs were undetermined at this time, 2) Roger Smith, Rubicon International would make a pro bono needs assessment and timeline proposal, and 3) the proposal would be shopped around within that industry. Councilor Burkholder thought expertise from within the agency should be solicited as well on transition planning. Also, he would like Council to review budget narrative goals and objectives; he was uncomfortable with some of the language. Chair McLain suggested he use the amendment process to make any changes. Councilor Monroe asked if NARC dues were included. Ms. Coats said it had been eliminated. Councilor Monroe requested an amendment to restore the dues.

Tony Mounts, ASD Financial Planning Manager, spoke to Elections Expense, as requested by the committee at a previous meeting. A copy is included in the public record of the meeting.

3.  Councilor Communications

None

Chair McLain adjourned the meeting at 4:37 PM.

Respectfully submitted,

Pat Weathers

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE MEETING OF MARCH 13, 2001

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

i:\minutes\2001\budget&finance/031301bdm.doc