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HomeMy WebLinkAboutApproved Minutes - 2010-05-03 LAKE OSWEGO Centennial 1910-2010 CITY OF LAKE OSWEGO BUDGET COMMITTEE MINUTES • May 3, 2010 Proposed FY 2010-11 Budget Chair Ron Smith called the meeting to order on May 3, 2010 at 6:31 p.m. in the Santiam Room of the West End Building, 4101 Kruse Way, Lake Oswego, Oregon. Members present: Jack Hoffman, Mayor Ron Smith, Chair Kristin Johnson, Council President Katherine Shallenberger, Vice Chair Roger Hennagin Frank Bearden Donna Jordan Kelly Calabria Sally Moncrieff Jeff Gudman Mary Olson Kent Studebaker Bill Tierney Daniel Williams Members excused: None Staff present: Alex McIntyre, City Manager Ursula Euler, Finance Director Jordan Wheeler, Management Analyst Brant Williams, Economic & Capital Development Director David Donaldson, Assistant City Manager Kim Gilmer, Parks & Recreation Director Denise Frisbee, Planning & Building Department Director Bob Galante, Lake Oswego Redevelopment Agency Director Guy Graham, Public Works Director Erica Rooney, Assistant City Engineer Joel Komarek, Project Director, LOIS Bill Baars, Library Director Ed Wilson, Fire Chief Chip Larouche, Chief Technology Officer Shawn Cross, Assistant Finance Director Kam Frederickson, Budget & Financial Analyst Christine Kirk, Public Affairs Manager Anthony Hooper, Management Analyst, Public Works Ann Adrian, Adult Community Center Bob Gilmore, Building Official Rachel Petersen, Facilities Manager Jane Heisler, LOIS Communications Director Kari Duncan, Water Treatment Plant Manager Cyndi Glazer, Library Volunteer Coordinator Tom Mueller, Golf Course Manager Jane Blackstone, Economic Development Director City of Lake Oswego Budget Committee Page 1 of 10 Minutes of May 3, 2010 Chair Smith asked the Committee to stay focused on the topic at hand; remember that when some number was suggested there had to be a corresponding, balancing, number; and ask the staff when they needed extra understanding. He noted that Gudman was keeping a log of all comments made by Committee members and citizens that would be helpful. Mayor Hoffman thanked the citizens on the Budget Committee for their service. Approval of Meeting Minutes Smith moved to accept the Minutes of April 19, 2010. Tierney seconded the motion and it passed by unanimous vote. The vote on the Minutes of April 26, 2020 was postponed in order to give Committee members more time to read them. Public Hearing: State Revenue Sharing Uses Chair Smith opened the public hearing. McIntyre and Euler clarified that the City received revenue sharing funds from liquor taxes. The administration proposed to put the revenue sharing funds into the General Fund as they had been doing in recent years. When invited by the Chair, no one came forward to offer public comment. Vote Gudman moved that it was appropriate use of state revenue sharing funds to put them in the General Fund. Johnson seconded the motion and it passed by unanimous vote. General Fund Department Presentations LIBRARY Bill Baars, Library Director, explained the Library proposed to reduce book purchases by $50,000. That kind of cut might have the least negative effect on library services, as the Library cannot add to their materials without removing others from the collection. The Library would be able to borrow books from the county pool. There are 51 on-call temporary employees who had no benefits and had not had a pay raise in three years. He wanted to bring their pay up to at least the bottom step of new hire pay. He noted that the Friends of the Lake Oswego Library raised $51,710 in their Booktique this year and the Library relies on them for much of their work on programs and materials; and the value of the services of the 495 additional volunteers at the Library who had worked 13,506 hours last year. During the questioning period, Baars clarified that part-time employees got prorated benefits - not full benefits. He announced that the library had just learned it was number one in the state for the seventh year in a row. He explained the Library siting study was a LORA activity because that agency wanted to know if a new library would be an economic driver for the downtown area. McIntyre acknowledged the Committee could decide on the recommendation. PLANNING & BUILDING SERVICES Denise Frisbee, Planning and Building Services Director, reported that the Building Center had reduced its hours to 8:00 a.m. to noon every day. Besides permits, inspections, compliance and enforcement responsibility the department also had to comply with state records retention and archiving requirements. There was a backlog of records to be prepared for retention. City of Lake Oswego Budget Committee Page 2 of 10 Minutes of May 3, 2010 Besides the core and state mandated services the planners provided they staffed five boards and commissions that met a total of 60 times a year; supported neighborhood associations; and worked on projects that would accomplish City Council goals. Their largest project next year would be to do the technical background work for the Comprehensive Plan update. They would also work on the code audit; Boones Ferry Road Phase 2 and produce Infill and Lake Grove Village Center overlay code design handbooks. During the questioning period Frisbee clarified Boones Ferry Road Phase 2 involved both planning and engineering. The planning component was funded in Long Range Planning: Professional & Technical Services. The starting estimate was $100,000, but it would likely cost more, as it is a big complicated project with many facets. She clarified that the Stream Corridor Feasibility Study was a small project to determine if the City could do more to manage its own public land. She explained that the Professional & Technical Services line item of$503,000 primarily funded projects that would accomplish City Council goals. Those funds include Boones Ferry Road Phase 2; studies and analysis in preparation for periodic review ($100,000 to $120,000); an arborist to do tree permit reviews; natural resource protection program improvements; Friends of Trees tree planting; and graphics for the two design handbooks. The department used consultants because they provided expertise and capacity the staff did not have. The department had lost its on-staff arborist and a planner with graphics design talent. She explained that the handbooks illustration project was not a project IT would staff. She estimated the handbooks would cost about $25,000 each. She clarified that the team of 2.5 FTEs for periodic review was composed of one redeployed long-range planner to the comprehensive plan and 1.5 neighborhood planners. That FTE count did not include hers and Dennis Egner's time. The .5 FTE increase in Long Range Planning accounted for an extended maternity leave. Neighborhood enhancement grants would be reduced from $30,000 to $5,000. They would only pay for neighborhood signage, which had been the original intent of the grants. Larger scale neighborhood programs could be funded through the CIP. Frisbee anticipated that the department could provide the same services to neighborhoods it had been providing, but some via a different vehicle. For example, neighborhood newsletters might be produced by staff with less planning experience. Gudman asked why Current Planning: Professional & Technical Services increased from $25,000 to $50,000. Frisbee explained the most recent set of Infill code amendments that the Council was about to adopt would require the City to make Infill advisors available and to produce the new Infill handbook. Calabria wanted to know what cuts the department made to adjust to last year's budget and what feedback it got from citizens. Frisbee said the department lay off two building inspectors, two building technicians and .5 building permit technician. The .5 FTE permit technician was staying for a couple of hours longer to complete her work. They had been able to keep up with almost everything except records management. People had to wait longer when they asked for records. The Building Official had been serving as backup for building inspectors and coming to work on weekends to retrieve records that had been requested. Frisbee acknowledged that the staff heard from people who were frustrated that the Building Center was only open until noon or because they could not get records right away. Sometimes that took as long as four to six weeks. The department would not fill the records retention position until it had enough funds available from fees to pay for it. After they had a records clerk they would no longer have to pay the county the $7,000 it charged to digitize City records. McIntyre clarified that when the planners attended evening meetings they were paid overtime for it. Hennagin wanted to know how many additional FTEs it would take to schedule planners so they would not work more than 40 hours per week and if that would save money. Frisbee said City of Lake Oswego Budget Committee Page 3 of 10 Minutes of May 3, 2010 the department had not done that kind of study, but it encouraged planners to use flex time; carefully tracked their work time; and tried to keep overtime down, but there is work demand during the day as well. One of the challenges was that there was only one natural resource planner and no one else on staff could perform that function. McIntyre clarified for Tierney that the overtime amount of$17,000 was low because a lot of employees took compensatory time off, though it can create a workflow problem when they were not there, as the work had to be done. Tierney asked why Employee Benefits had a large increase. Euler advised that benefits were 50°/o to 57% of salary and the amount in this budget appeared to be in that range. Smith related that his neighborhood did not support the 75% reduction in neighborhood planners. He asked the department to reconsider that and look for an alternative to cutting neighborhood grants. He asked that the department also find an alternative way to do the graphics for the Infill handbook. Frisbee assured him the redeployed neighborhood planners would be working on some of the same issues in periodic review that neighborhoods raised when they planned, including density, housing, transportation, and economics. The new neighborhood planning process had taken those issues off the table for neighborhoods and made them citywide issues to be addressed through the Comprehensive Plan update. The neighborhood planners had great relationships with the neighborhoods and that would not end. The department would be mindful of how to maintain that connection during periodic review. During the three-year Comprehensive Plan update process .5 FTE would continue working with the neighborhoods the planners were currently working with. Frisbee said in reevaluating the neighborhood planning program and its effectiveness the department found that that only six neighborhood associations held monthly meetings and participation was low. The question of what was sufficiently broad-based, representative, participation would be addressed during the Comprehensive Plan update. ECONOMIC & CAPITAL DEVELOPMENT DEPARTMENT Brant Williams, Economic & Capital Development Director, explained his department was responsible for LORA, economic development and capital facility projects. It had three employees: the Director; the Economic Development Manager; and the LORA director. All of their work is essentially based upon Council Goals that were set in this or previous years. The Economic Development Manager recommended an economic development strategy that was approved by City Council in April, and the department will continue to implement that strategy in the upcoming year. The department had formed a business solutions team comprised of City staff to help deliver better City services for businesses; a "bank local" program; and begun work on business retention and recruitment procedures to provide a better business environment for Lake Oswego. The main capital projects the department is involved with are the Streetcar (there are three alternatives being evaluated as part of the Lake Oswego to Portland transit project), as part of the Draft Environmental Impact Statement (DEIS), which is coordinated by Metro and Tri- met. Lake Oswego is involved in helping facilitate that study and help work on a decision of the locally preferred alternative later this year. Also, the Foothills Redevelopment project is to redevelop 120 acres of the Foothills area into a higher density neighborhood to support a more vibrant downtown; and they would like to provide a better connection between downtown and the Willamette River for all Lake Oswego citizens. One of the main drivers of this project is to increase the tax base as well. They planned to suggest how to move forward with the Foothills planning effort at the City Council's May 25th work session. They had budgeted $1.1 million in Professional & Technical Services for a Foothills study. The total project would probably cost $1.5 million over a couple years. They would transfer$50,000 into this budget from the Streetcar Fund (renamed to Trolley Fund in 2010-11) for management in this department. Development & Training funds would be used to help businesses. The department proposed to hire an City of Lake Oswego Budget Committee Page 4 of 10 Minutes of May 3, 2010 administrative assistant. Both the rent and the administrative assistant position were funded 60% by LORA and 40% from the General Fund. Goodman asked where the $6 million the CIP showed for the Streetcar in 2011-12 would come from. He recalled that Bruce Wood had indicated that redevelopment in Foothills would likely not occur for several years. He worried the $1.1 million study might eventually become just another study with no result. B Williams explained the $6 million was a "placeholder" to show the City would need funding over and above the right-of-way for the project. He would pull together a funding strategy to suggest to the City Council at the appropriate time. His goal was to have development pay for whatever part of the Streetcar the City was responsible to pay. The City may need the funds in 2013 or 2014, not 2011-2012. He acknowledged it was unlikely that enough development would occur in 2013 and 2014 to generate $6 million, but the City could either bond against it or use tax increment funds to get the money up front, if needed. They will discuss the cash flow timing with Tri-Met. There were still many unknowns about the funding strategy and when the cash flow would be needed. He would determine that and make a recommendation to the Council during the next year. He stressed that if the Streetcar project moved forward, the City needed to have a development plan in place. The City needed to resolve the obstacles that had kept Foothills from redeveloping to date to be ready for it. The proposed study would help resolve them. He clarified for Gudman that there was no contract in place yet with either Metro or the Foothills property owners. B Williams said they had indicated they were working diligently to help make the project successful. He clarified for Studebaker that the three alternatives were the Streetcar; enhanced bus service between Lake Oswego and Portland; or a "no build" option. D Williams cautioned that if the City spent $1.1 million for the Foothills study, it might be wasted money if the project was delayed. B Williams believed future studies would build on that study. Calabria asked if the department had a way of measuring its success in promoting business. B Williams explained the department would suggest metrics to use, but there was no magic formula to quantify economic development. Calabria recalled reading that Shorenstein had opined that the high vacancy rate in the Kruse Way area was due to jobs and until the economy improved it did not matter what building owners did. B Williams said what the City could do to help was make the corridor's public infrastructure as attractive to new tenants as possible, and tell people about the great things Lake Oswego had to offer. He clarified that the department spent more time focusing on supporting current businesses and attracting more businesses to the Lake Grove and downtown business communities. Hoffman related that the City Council had talked with Bruce Wood and other developers and consultants. They heard that because Foothills was a prime location in the region; and because of Lake Oswego's reputation and schools it was likely that Lake Oswego would be an exception to the conventional thinking that there was an oversupply of condominiums. Tucson, Seattle and other jurisdictions had used LIDs to fund Streetcar development. The proposed Foothills study would suggest solutions to specific problems identified in previous studies that he believed it would be pertinent years from now. He views this as a "framework" plan and stressed the community needed a solution-driven document to use as the basis for going forward. Hennigan mentioned that traffic flow and access to highway 43 issues will also be included with this study. Hoffman added that Tryon Creek Sewage Treatment Plant, flood plain, and cut and fill/build rules would also be addressed. Olson explained she was not opposed to redeveloping Foothills. But the City needed to redevelop it at the right time, in the right way. She did not see a compelling reason to spend $1.1 million in reserves now and recognizes not spending it now does not free up funds for other use in the General Fund. There was no signed agreement with the property owners, and they would City of Lake Oswego Budget Committee Page 5 of 10 Minutes of May 3, 2010 only contribute $120,000. The scheduled reimbursement of$500,000 would be in the following fiscal year, not in the year the City would spend the $1.1 million. $300,000 was to come from a Metro grant the City did not know if it would get. She suggested waiting two years until the City got its loan paid back from Tri-Met. To have money on loan to Tri-Met while depleting reserves was a risk she was not comfortable taking. She recalled Woods had advised the Council that development was not likely to happen in Foothills for at least five to ten years without large public subsidies. The City was not equipped to handle that kind of subsidy right now. So she was not willing to spend the $1.1 million. B Williams explained that the intent was to have everything in place before the City Council authorized any funding for Foothills. Hoffman observed that the City Council had already voted to spend the money. Smith asked how waiting for a year to spend the money would affect project opportunity. B Williams said the Streetcar and Foothills projects were so closely aligned he could not predict exactly what would happen if Foothills was delayed for a while — but a delay would not help, as the two projects would move forward together. Olson asked why the property owners were only paying $120,000 toward the $1.1 million? B Williams said he did not have the agreement that will go to Council in May, but he anticipated that was what they would offer to put up. He clarified for Olson that the $145,000 in Professional & Technical Services was for marketing activities connected with the economic development strategy and the department never anticipated it would be reimbursed. They would use $50,000 of that budgeted for marketing to leverage private money to implement a full-fledged economic development program that would be funded mostly with private money. Johnson asked about what the business community response was to having a City Economic Development Department. B Williams reported it had been a positive response. Calabria wanted to know why the department rented space; if they had foreseen that need when the last budget was proposed; and had the department planned to share an administrative assistant with Planning in the last budget? B Williams explained City Hall was very crowded and the department found a small space outside City Hall that was close to the business community and City Hall. Planning had needed its administrative assistant full time so his department lost that service. When Economic Development moved from City Hall they brought in a temporary assistant. The proposed new hire would be .6 FTE LORA/ .4 FTE Economic Development. D Williams asked why the department did not move to the WEB. B Williams said the department wanted to stay downtown because LORA was a downtown agency. Smith asked for reassurance that Tri-Met would pay the City back. B Williams anticipated they would because the funds were to come from Metro and they had pledged them in an intergovernmental agreement. The Committee took a short break at 8:10 p.m. PARKS & RECREATION DEPARTMENT Kim Gilmer, Parks & Recreation Director, explained the proposed budget would maintain last year's service levels except for the closure of the Skate Park and not having a lifeguard at the Swim Park. It eliminated one contracted maintenance service person but the department could still keep the fields playable. It would reduce the number of temporary, seasonal contracted employees who picked up garbage, cleaned restrooms, did some extra weeding and took picnic reservations. So that reduction in service might be observable. The proposed budget funded a parks and recreation master plan and completed the boat dock. The state Marine board had just confirmed they would pay half of the cost of the dock. The department would start a more aggressive invasive species removal program. Gilmer explained that salaries were higher because the department had not spent the entire budgeted amount last year. Three positions had been vacant for several months. She said the City of Lake Oswego Budget Committee Page 6 of 10 Minutes of May 3, 2010 two employees who had worked as temporary, part-time, employees for many years were updated to full-time with the supplemental budget. She clarified that she did not anticipate any vacant positions in the new fiscal year. She explained that Merchandise for Resale was up $40,000 because this year the department planned to sell produce from the Community Supported Agriculture garden at Luscher Farm. Professional & Technical Services and Development line items paid for the master plan and other expenses such as bank service fees for credit card charges, background checks, the annual computer software fee for online registration; producing a document to support the DEQ permit and to address citizen interest in chemical use in parks; more in-house staff training; updating the Trails brochure; and entertainment for the Farmer's Market. Professional & Technical Services also funded the many seasonal workers. She believed it would cost a lot more to hire them as employees instead of contracting for their services. She explained that the new master plan would replace two older plans that did not function well — the Parks & Rec Comprehensive Plan and an Open Space Master Plan - the two were not prioritized against themselves. Those plans did not give a timeline or funding element for the plan. The Parks Board and Natural Resources Board would like to see one document that addresses all the items and could be updated easily internally every 3-5 years, without going out to a contractor about every eight years. A new plan would say what the community prioritized, address everything needed, and it would be easily updated every three to five years. A new Luscher Farm Master Plan would become a supplemental plan in the overall master plan (included in the $275k) and save money in the long run. She anticipated the master planning effort could cost less than $275,000 depending on the public process and could be completed in a year. The department would likely need to spend most of it in fiscal year 2010-11. Calabria was concerned that the plan would become outdated if the process took too long. Gilmer stated that it was more than just a capital plan. It set policy and levels of service and priorities for spending SDC funds. It was necessary to have a current plan in place in order to apply for grants, such as a state trails grant. She said the process would help the department avoid duplicating services in multiple parks or school fields. Gilmer explained the $55,000 reduction in contract services for maintenance was offset by increases in the cost of water and electricity. She confirmed the department was using the least costly method of maintaining fields, which was contractors. Two part-time teaching pros wanted to be on contract, so that increased Professional & Technical Services. But the savings in Personal Services was not evident because the department had made an error and budgeted too much money for Part-Time Salaries and Benefits, which will be an adjustment to the proposed budget. She reported that the teaching pros returned their costs by generating revenue from lessons and Merchandise Sales. The department had investigated what competitors charged for greens fees and determined it could not raise its fees and needed to increase its marketing efforts. She confirmed for Studebaker that the Golf Course Fund needed the transfer in from the General Fund to break even. The tennis revenue estimate was conservative. Fewer repairs were needed this year. There was an unexpected accumulated PERS expense of about$60,000 to be paid this year. Olson asked why the department was adding new programs when existing programs did not pay for themselves and had to be subsidized. Gilmer explained the current economic situation allowed the department to hire temporary and part-time employees at much less cost than previously, when they contracted with people. The department added fresh, interesting programs when people lost interest in the old ones. A grant paid for one program. The dance program should cover itself 100%. Adult programs covered all their direct expenses and youth programs covered 70% to 100% of their costs. Olson asked what the total revenue was from the Swim and Skate Parks in the last couple of years. Gilmer said the department did not charge for the Swim City of Lake Oswego Budget Committee Page 7 of 10 Minutes of May 3, 2010 Park and revenue from the Skate Park covered approximately 40% of the overall cost. She clarified that the tennis center siting study would cost $25,000 - not $60,000. Gilmer confirmed that the next phase of Cooks Butte (the trail) was not in the proposed budget. She clarified that when the department contracted to remove invasive species and replant over a three to five year period it cost approximately $12,000 per acre. When asked, she guessed that 60% of the 600 acres of parks were covered by different levels of invasives. She confirmed the department collected rent for use of the WEB and the money went into the General Fund. She related that tennis center users had told the department they would be willing to pay a higher fee if part of it would be set aside for a new tennis center. Tierney said the operating expenses for the Tennis Center were very reasonable, but it was not the moneymaker he had thought it was. Smith observed there had been many questions related to the Skate Park. He wanted to know if there was an alternative that would keep it. McIntyre clarified there was technically no condition of approval that required the City to staff the Park. The staff report had assured the DRC that the Park would be staffed, so that was a kind of promise to the community. Studebaker asked if Gilmer was comfortable having the Swim Park open with no lifeguards. She said it could be open with warning signs, but that was not the best solution. Public Comment Maria Meneghin, 1179 Sunningdale Rd., spoke on behalf of Friends of the Lake Oswego Public Library. She thanked the City Council for funding the feasibility study. While Friends deeply regretted the loss of the City's historical $900,000 contribution to the Library's operating budget, they realized it reflected fiscal reality. But they wanted the Budget Committee to reconsider cutting the Library materials budget. There were 33,129 registered Library users in a City with a population of 36,755. There had to be some less valuable services that could be cut instead. Diana Boom, PO Box 328, Lake Oswego, 97034, wanted to know if the City Council had adopted a WEB financing plan. She did not see that in the proposed budget. She suggested keeping the $1.1 million in reserves. She suggested using part of the remaining Centennial Celebration money to keep a lifeguard at the Swim Park. She cautioned not to judge a neighborhood association by attendance. Participation in neighborhood association meetings might be low, but it was also low at Planning Commission and City Council meetings, and whenever one of those bodies was discussing a hot topic, participation increased. That showed the people were aware of what they were doing. She suggested that departments hired consultants because of a lack of staff capacity, not staff capability. Jerry Wheeler, 13594 Blazer Tr., CEO of the Lake Oswego Chamber of Commerce, supported the proposed economic development program. He advised now was the time to get ready for an economic turnaround. The strategy to attract more jobs and businesses would increase spending in the City, visitors to the City and increase City revenue and quality of life. He advocated prioritizing capital projects and renewing focus on the arts. He said the City and the Chamber needed to collaborate on policies and procedures and a tool kit to help someone who wanted to do business in the City. He saw a need for more education, outreach and access to better resources for existing businesses. He noted the City Council had approved the five-year plan and he asked the Committee to ensure it was funded. Debbie Craig, 850 Cedar St., representing Friends of Lake Oswego Parks, recalled that Gilmer had done a great job explaining why having a parks master plan in place was necessary. Craig supported that effort and asked the Committee to also fund $60,000 for Cooks Butte and find the money for the Rosemont Trail a year earlier than the CIP schedule of 2011-2012. She stressed City of Lake Oswego Budget Committee Page 8 of 10 Minutes of May 3, 2010 that survey results showed that the number one recreational choice was walking. She had asked Gilmer how to pay for the projects. It would need about $260,000 from the General Fund for pathways, and it could likely pay the General Fund back by selling a house. Craig said the City had done a great job of accumulating public property, but now the goal should now be to access them and connect them. John Surrett, 1685 Edgecliff Terr., stressed the need to maintain pathways and the City-owned properties abutting them. They were full of invasive species and storm debris. A 2008 survey showed that the main form of recreation for more than 70% of those surveyed was biking, walking or jogging on pathways. He regularly cleaned the Edgecliff Terrace segment. He explained that ivy-killed trees were a large part of the problem. The $24,000 in the budget for Repairs & Maintenance was not enough. He recalled that when he called the Maintenance Department they said it was the responsibility of the Parks & Recreation Department to keep City-owned property abutting trails cleaned up. Surrett indicated that the Economic Development Department needed a better plan. Just like LOIS, they needed to chart their work and bundle all work products. They needed to schedule backward from things like DEIS. If it was "no go," and they did not get the money, they needed to have an out system and determine where the staff was going to do work elsewhere. They had to have measurements and establish milestones. Gudman wanted to know how much more money Surrett wanted the City to budget for pathway maintenance. Surrett indicated he thought the budget should have an additional $100,000 to $230,000 in it for pathway maintenance. Douglas A. Rich, 16900 Canyon Dr., who served on the Natural Resources Advisory Board, observed that the natural resources planner position had been converted to an analyst position. He said the City might need an analyst, but it also needed someone to organize projects such as trail maintenance and volunteer ivy pulls. It could be a City employee or an AmeriCorps worker. If there was no one to supervise volunteers who wanted to work on cultivating native species at the hoop house at Luscher Farm the investment in that building might be lost. The plants cultivated there were used in restoration projects and sold at the Farmer's Market. He stressed many people used the Cooks Butte trail. He advised the City to fund it so it did not lose the benefits of the money already spent there. Mike Moore, 1120 Crestline Ct., was a member of Friends of the Lakeridge Tennis Courts. They had asked the City to match the $30,000 they had raised. He stressed that residents of all ages used the courts; to fund the project would preserve a well-used community asset; and this was an opportunity for the City to show how it would get things done in tight circumstances. Darryl Boom, 557 Evergreen Rd., explained that he knew that half of the $307,000 in Tourism revenue was going to be used for the Iron Furnace, but he wanted to know what the other half was to be spent on. He asked if it could be used for the Skate and Swim Parks. He wanted to know if it was true that the City had committed $18,000 to the Lake Corporation for fireworks. He did not think that was a priority in the New Normal. It would be better to use it to pay for a lifeguard at the Swim Park. Gary Gipson, 19 El Greco, questioning starting Foothills development until real estate prices stabilized. A recent survey showed that the Portland metro area was number two on a list of areas with overvalued real estate. Properties were estimated to be overvalued by 31% and values were anticipated to go down 10% next year. The trend might continue for two more years. Considering that and the WEB situation, perhaps the Foothills project should be postponed. He also advised that if the City stopped staffing the Skate Park it would have to demolish it. If it was City of Lake Oswego Budget Committee Page 9 of 10 Minutes of May 3, 2010 not supervised and the hours were not enforced, it would become an attractive nuisance; a child might get injured; and the City would be liable. Leann Barrett, 7 Buckingham Terr., suggested funding the Skate Park, the lifeguard, and the $60,000 for the tennis courts by finding the funds in the $1.1 m Foothills budget or from the $100,000 still left in the Centennial Celebration budget. She noted the City had spent money for plans for Foothills before and now it was proposing another plan even though that area was not likely to be redeveloped for another five or ten years due to the economy. She asked if it could be postponed. The City was closing a Skate Park where a lot of 10 to 16-year-olds spent a lot of time in summer under supervision. The Park staff held competitions, gave lessons and cleaned the facility. She advised the City to cut things out of the budget that were not used right away and not the Skate Park, which was used. Eric Lider, 2071 Wembley Park, a retired teacher, coach, and speaker for the Asset Building Coalition, advised the City to send the message to youth that it cared about and valued them. That was not the message being conveyed by closing the Skate Park or eliminating the lifeguard. Liz Lamade recalled that Gilmer had advised the City could not pay for resurfacing the Lakeridge Tennis Courts because it was not a City-owned property. Lamade advised it was owned by the School District and the project could be paid for via the Capital Improvement Plan. She stressed the Friends of the Lakeridge Tennis Courts had raised half the money and the $30,000 the City would contribute equated to less than $4,500 per year for each of the seven years the new surface would last. She urged the City to pay to keep an asset it already had. Lamade said it was not accurate to state that the indoor tennis center no longer made money like it used to. It might not make money this year because of the unexpected PERS expense, but if the Committee looked back through past budgets, they would see that the City Council transferred $35,000 to the General Fund from the Tennis facility in 2004. Chair Smith closed the public comment portion of the meeting. Adjournment The last Budget Committee meeting was scheduled on Monday, May 10th; and the Lake Oswego Redevelopment Agency (LORA) budget presentation was being moved from May 3rd to May 10th, due to time constraints. Chair Smith thought it unlikely the Committee would be able to finish its City work with one more meeting. He planned to circulate an email to determine when enough members could be present for a fifth meeting. He adjourned the meeting at 9:57 p.m. Respectfully submitted, Kam Frederickson /s/ Kam Frederickson Budget & Financial Analyst APPROVED BY THE BUDGET COMMITTEE: May 19, 2010 City of Lake Oswego Budget Committee Page 10 of 10 Minutes of May 3, 2010