Budget Committee - Regular Meeting

He'll be here. Call this meeting to order. Want me to Do you want to do the introduction or should we do approval of minutes? Either way. Yeah. Uh do the Okay. Has everybody had a chance to look at the minutes from our last meeting? Any changes that need to be made? Looking for a motion to approve. Second. Motion Pel. Oh, sorry. MC second. Sorry about that. So, the um minutes have been approved. Oh, we'll approve those in a second. We have a motion in a second. All those in favor say I. I. Opposed. hearing none. Turn the time over to us. Yep. Okay. Um I'm ready to take a nap. Okay. Zach and I have been working really hard on this. Um and um I think as we get a few more years under our belt, um I think we have a little more confidence and are better prepared and know what we're doing. So um what you see before you tonight is the a recommended budget uh presented to you. Um I think in the past we have uh broken up our budget meetings into different topics. Um this year uh what we'll be doing today is we'll we'll be presenting everything today that we did over three meetings previously. Um it's going to be a lot of information and we'll get through it and then

um all the future meetings are for the budget committee to discuss deliberate and things like that. So with that uh we've got Oh, I even had an agenda up here. There we go. So we've got 2 and 1/2 hours. Uh we don't have to use all of it. Um but we'll stop at least by then. So uh let me jump right in. Uh so here is the um kind of what I'll be sharing with you um today. Talk a little bit about the organization of the budget. We have some new committee members, some new counselors. Um I share a little bit about the budget message and overview of um of the budget. Uh we'll go then we'll go through some of the major funds. the general fund, uh, our utilities, our capital projects, uh, our departmental requests, and our city manager recommendations. Actually, I think the department requests are moved up a little bit like that. Looks like I changed it from when I put the agenda together, but um, that's kind of what we're hoping to get through today, whereas in the past, we usually did one meeting on this, one meeting on this, and one meeting on that. So, um, that's the goal for today. So, uh, for those of you who are new, um, if this is new to you, um, government budgeting is different than, uh, in a private business. Um, it's similar to how, um, budgeting and finances are done, um, in a nonprofit organization. We call it fund uh, fund accounting. And so, we're going to talk a lot a lot about different funds that the city has. Uh a fund is a pool of money designated for a specific purpose such as running a city's daily operations or achieving certain

objectives. Each fund has its own accounts that must balance meaning the money coming in and out should be equal. One way to learn uh heard it described as a different checkbook for every fund. Um you all know what that means. Um anyone younger than me won't know what that means. Um so here are the funds uh in that we have the different types of funds in seaside. These are the major ones and then we have some kind of um one-offs. General fund this is the main pool of money used for the city's everyday expenses and operations like paying employees and maintaining public services. This is the bulk of it. Um and um we're going to talk spend most of our time on this on the general fund enterprise funds. These funds are used for services that the city provides and charges for including water, sewer, and the convention center. The money collected from these services is used to cover the cost. So these are uh think of it as like running their own business. they they should um cover them their uh their revenue should cover their expenses. Um whereas things like the library don't generate enough revenue to cover their expenses. And that's the point. Uh special revenue funds, these are funds that are set aside for specific purposes often because the money comes from a particular source that must be used a certain way like grants or taxes for specific services. Then the last of the major are capital projects fund. These funds are used to pay for major city projects like building new roads and parks. They cover the costs of construction and other largecale improvements. Some other minor ones we have debt service funds. So when we issue uh bonds or any kind of debt uh we

set up a separate fund and um we transfer money in there and uh use that to pay the bonds. Um, we have one trust fund and that is for the library. There's some money set aside there. Have we discovered what that how that how we got that yet? No is the is the short answer to that. Um, typically the trust funds though, it it usually um like it usually comes to us when someone passes away and says, "Hey, I want I want to give the Seaside Library $5,000 out of my estate to buy books for kids." It's things with really specific purposes. That also involved Elder Cruz donation years ago that he gave his director. I think he gave about 500 grand after him in the library. I would I would have to check. Um but that is the type of thing that could be set up with a trust. I vaguely remember hearing that it was there was a big fundraising going on to actually build the library. I don't think the city did that. I think it was private individuals. Gotcha. And the money that was left over after the building was finished, I think is where that came from. Okay. Um road district fund. Um we have a road district and uh the funds are used to obviously maintain the roads in addition to funding that we get from the state gas tax for roads. And then urban renewal fund. Um we we'll talk a little bit about that later. We have an improvement commission that oversees the urban renewal agency and no one here is on it except for the council, right? Or some of you are. You're double dipping. And then so

we will have a at one point we'll have a combined meeting of the urban renew no urban renewal agency budget committee which is 28 people. I still think there's got to be a way to becomes a very full room pair that um so these are the different funds here is um we have 35 different funds. Um actually it's 37. Um we still have a tiny bit of revenue trickling into an old closed out urban renewal agency, but I did not include that one. Um, we're talking a couple hundred dollars. So, um, I thought Zach told us we would be down to like 85 this year. Soon that's still work in progress. That's still a work in progress. So, I will say, um, my goal would be to roll a lot of these together. Um, and once we're really, so we're we're in the midst of implementing and starting up with our new uh, financial software, which is fantastic. Um, once that's ironed out, everything's going smoothly. I can see all these being combined into one. These combined into maybe three or four or four or five. Um, these ones, we'll see. Uh, we'll see. Um, uh, some of the other minor ones don't matter as much, but um, uh, really the revenue source say for these is all the same. And so it just means that there's a whole lot of transfers going on and stuff like that. Um so we'll we'll be looking forward to that. Um it should make our audits cheaper and easier too. So uh within our funds um we have departments and then within each department uh we've grouped all the expenses into personnel, materials and

services uh and capital in terms of the the operating uh the operating uh expenses for these departments. All right. Um let me talk a little bit about the budget message. Um, so a couple of the accomplishments that uh are included in the buzz budget message that were uh completed last year, either big projects or or other things, acquisition of Eshuary Park, uh improvements to the wastewater treatment plant, seismic improvements for the public safety buildings, the implementation of financial software. Now, this is this is through the end of the fiscal year. So, we're still we still have through June to finish that and then getting our pavement preservation study done for uh to understand the um condition of our roads. Um so, uh my goal for this next year um uh is to for the budget is to enhance the quality of life of residents while boosting the city's resilience and operational efficiency. Um, I think the message we've had for a few years now is I think we've the city's been underinvesting and that's coming back to uh cost us a lot more and so we are trying to uh make the necessary improvements so that over the long period um I think we're being the wisest with the with the city's money. And so along those lines, uh some of the major things you'll see are increased investment in water, wastewater and streets infrastructure. Um both the wastewater and the streets um is going to need new uh new revenue

sources. Um the pavement preservation study that was done um said we need to we're right at the verge of the majority of our streets being in fair condition and if we can keep them we can get them back to good condition but if we don't do anything they'll go into poor condition which is a lot more expensive. But in order to do that, that study says we need to spend $20 million over the next five years. And we have about $4 million saved up for road projects, and we receive about $1 million a year. So, there is some work to be done to identify um identify new revenue sources um to pay for those uh improvements. Um and in the meantime, um it's going to be priorit prioritizing um the projects that we can do with the funds that we do have in the way that will make the best financial sense in the long run, which will likely be focused on preserving the fair street as opposed to uh say rebuilding a really bad street, which isn't popular, but it's it's uh very expensive to put all your money say into one street. Um other uh gohead move on from that. You say investment in water, wastewater and street infrastructure. Are you including sewer I mean storm water as well in there or are we just talking about water delivery and wastewater disposal? Just talking about those. We don't have any um storm water uh projects planned for this next year. That's not on the radar at all. Can I add to that? We don't have a dedicated Atori's got a dedicated um storm water fund in addition to uh water and sewer and some of the other enterprise funds they have. Seaside does not. So seaside's uh storm water expenses would

typically be spent out of um streets or streets. I mean it both it becomes a little more gray. So is that something that then basically just gets disregarded because we are under stress already with street funding and other infrastructure funding? I don't think it's disregarded. What do you mean by it's not in the budget? So no it's it's these are increase investments. We already do um as an example street sweeping. The purpose of street sweeping sweeping you may think it's for keeping the streets looking nice. It's actually to keep the storm drains clear and so that's already happening. That's budgeted out of the streets department. Um other things like jetting activities and stuff like that streets department does the sewer department does some. So it's being done but it's being done already within existing departments but not as a dedicated enterprise fund. So the money for storm water is coming out of the street fund and we're needing money in the street fund. Um, should we at some point be considering having a storm water fund like Atoria does? Um, I think that's absolutely something we we need to talk about. Um, we probably would want to do some consolidation of services so it's it's not kind of spread out but it's uh put into one area with one area of responsibility. And that that certainly may be one of the things we look at when we need when we talk about increased street funding is um pulling out those um storm drain expenses to free up funds um that are already that were street funds that we're using for storm storm drain. I noticed park center on there. Is that in the continued focus on one-time

capital investments or where it fit in? Yeah, we'll we'll talk parks. Um, uh, so, uh, other areas of focus, improved public safety response. Um, these are all things we'll get a little more into. These are just kind of high level, um, things that I see. Um, very cautious about including any ongoing budget commitments. Um we're in a position uh going to the next line where we um we have some good reserves that we can be investing in um better equipment uh and and our infrastructure. Um but uh being very cautious in committing to any ongoing expenses as we only see a small amount of growth in our revenue. um you know who knows what the economy will look like over the next few years. The nice thing is that we are somewhat um insulated uh from uh some of those uh if we have a downturn. Um generally speaking, property tax is the most stable revenue source, but we have quite a few other revenue sources as well. But unlike other states, we're not at the whim of the sales tax, which goes up and down quite a bit. So um okay uh so the approach we try to take is everything in the budget is the same um with the exception of what's on this list and there may be some other minor things. So we've updated the personnel costs um we have two uh unions and so um all of those costs have been updated. That includes things like insurance. We have other pass through expenses where there is a dedicated revenue source. So,

as an example, the convention centers one where um uh convention goers receive a bill for their food services. They pay the city, the convention center, and then we turn around and cut a check to Oregon Fine Foods. And so, where those were needed and there's a corresponding revenue, those have been changed. and any other contractual expenses like that. Other than that, the only other things that have been included in this budget are um the re recommended budget request and that's what we'll get to by the end of the the presentation. So, are you increasing any FTEEs? Yes. That's part of the cautious on the um ongoing but where needed. The Can I add one thing, Spencer? The one thing on um that just came to mind that's on this list is is a thing that we've mentioned in the past, but it's worth mentioning here again. If we in terms of capital projects, if we didn't get the project done and it's a project that is going to continue into next year, it's going to look like that line has been altered from previous years, but it's that project continuing. So if we had a project budgeted capital project for a million dollars and we've spent $200,000 of it, we're going to carry forward 800,000. Um, okay. Very high level revenue expenditures. Um, one of the problems with having so many different funds is there are so many overlapping transfers that if you add it all up, um, our budget is three times the size of what it actually is. Um so uh anticipated revenue for next year about 33 million. Total budgeted operational expenses 41 million. So you can see we're going to plan on spending 8 million more than we take in. But that

is anticipated when you're spending capital projects. You you're building capital projects. You're spending money you've saved up. And so um that's the case. we are not overspending uh on our operations compared to new revenue coming in. Um but that's kind of the very high level breakdown. So if someone says um you know what our um budget is Zach, we'd say the 41 million. Correct. Correct. Okay. Uh jumping in a little bit uh on the budget requests. We'll go through these for those of you who are able to attend. We had um our department heads uh provided a kind of a some background on all of these I don't know a few months ago. It's all blurred now. I think in February. Um, if you haven't seen it and you do want more details, um, I think it's it's on YouTube and we can send you the link and and get you any information you want. So, going through these in the general fund. Uh, and so you'll see we I've separated these out between one time and ongoing expenses. And the reason for that is we can use savings that we have for the one time, but the ongoing is what we're committed to. um moving forward. So you have to have confidence that the money will be there next year. Um so going through these uh the first is the these sliding doors which are um a complete pain and um we've even had a worker's comp injury on someone trying to move them. We've tried to have them repaired many many times and um it it doesn't stick. So um that's one of the projects. Um there's also a request to repair replace the main doors

at city hall. Um the doors are old but also the um the ADA access functionality is problematic at best. So we want to get that fixed obviously. Um there has been talk about doing some other renovations um within city hall on on the other side. um library. Um they uh so the library was what year was library built? 10 years ago. 10 years ago. Um it uh the HVAC system. Uh I should have had the picture, but it consists of like 10 separate residential units that there's a big bank of them and they don't none of them talk to each other. And so, um, some of the feedback, uh, Jennifer has received is, um, that sooner rather than later, there will probably be need to be that that'll probably need to be redone. This is just a budget to have um, a mechanical uh, firm or an HVAC firm come in and analyze it and um, design something for us. Once we understand what the cost is, um then we'll circle back on that. Um but we don't know what that is yet. Um there is a a request for the library. Uh this was on on a request last year that but wasn't funded to reclassify the youth library assistant from 30 hours to 40 hours. Um it's it's a extra 10 hours that can be used for programming for youth services. Uh but the cost is $40,000 because the threshold to receive benefits is kicks in after 30 hours. And so that's why the cost is so high for for those extra hours. And then there's

also request to do a library uh furniture request. Um and this comes uh for two reasons. One um it gets heavily used. It doesn't always get used by the most sanitary individuals. And it's um it's uh it's a lot of it is now currently at materials that aren't great for cleaning. How about that? Um and so um that would be a u a one-time expense. And I think it's talking to Jennifer, she she kind of hopes to do parts of the library kind of each year and this would be kind of a a year one. Before you go on to the next page, um the council sliding doors and the main doors, are those actual estimates now or are they still just g rough guesses? Do you remember? Rough guesses. Yeah. Okay. So, we still don't know for sure any sort of real numbers that that might actually be. Uh, some of it comes from talking to some of our our staff that have more expertise than I do on some of those costs, but this is a placeholder till we get um quotes and and nail it narrow it down. And the $40,000 for the library assistant is additional to the money already. Yes. For that. Okay. Thank you. I wanted to make sure I was understanding that. Yeah. uh public safety uh fund budget requests. Um there's a patrol vehicle replacement. Um the the police department have they have about 10 12 vehicles. Um and they're on a pretty good program where they basically rotate out one per year. So I think um the one this year I think is up around 140 150,000 miles. they

do they are driven hard the nature of the work and so it's been a good program to do one per year and it kind of helps us keep on top of it unlike some other departments we'll talk about in a little bit um one is the next is to uh reclassify the communications manager this is the um who oversees d dispatch in a previous year there was a similar request it was um a request to reclassify the position to be equal to lieutenant in department and that um was something I didn't recommend. Um this is a reclassification to be on the same uh pay range level as the sergeants which I think is completely appropriate. And for this individual who is topped out at the fifth step, they would go up one range, which is one step, and then they'll be topped out again, but it it's it's it's 5%. Um, the next one are taser replacements. Um, I'm trying hard to say something nice about Taser. Um, pretty soon I think we're going to be on a subscriptionbased thing where um we'll have to charge the account and every time we just deploy it they'll charge us or something. Uh so um there's they're rolling out new hardware won't support the old hardware. Um so this is the cost to do that. Um and um hopefully it's good. Do we want to get at least 5 years out of it? Um, anything else you'd say, Zach, on the tasers be besides what we personally feel towards it? There's there's not a lot of alternatives to this specifically because the company who bought who owns the trademark for

Taser. They're called Axon, and they basically got a monopoly on the entire market. So, um, if if any of you have HBO, John Oliver did a um did a Yeah. Did a complete um show about this in the last two weeks. Uh where basically I mean they are useful. I I I don't think anyone will argue um they don't come without their risks, but their risks are certainly better than pulling out an actual pistol. Um but as a as a result of them um having a monopoly on the market, they can basically charge whatever they want. And the the place that they get you, our our tasers that we have right now are functional, but where they get you is that they won't if if we were to use a taser uh on someone and they sued the city, ta taser Axon will not send an uh expert out to support that in court if they're no longer servicing that equipment. So that's where they that's where the risk doesn't necessarily make sense uh in terms of the city and not updating our equipment and falling into line with everyone else. How many ters do we have? Uh we've got 22 officers and I would suspect we have a couple extra. So we probably have somewhere between 23 and 25 if I had to just ballpark it. I don't know the actual number but that would be my assumption. What are you doing with surplus Facebook marketplace? Give them to the high school. Um uh okay. Um the fire department has requested two full-time firefighters.

Um, one of the critical areas for us is as we see uh continue to see increased calls for service is um is the after hours responses. Um, traditionally, when I say traditionally, over the last 20, 40 years, we've had a great volunteer core that, um, get smaller and smaller with each year, which is very common for what we would call a, uh, combined department, combined paid uh, employees and, um, and volunteers. Um, and so it's we still continue to recruit and we do get new people. Um but um we took a big loss last year. Uh we had one volunteer who happened to be a police chief in a neighboring city who volunteered almost every evening. Um and so um right now if if there is a call in the evenings, it's someone responding from home and an intern that that's at the station. And so eventually what we are trying to um build to is some kind of um 24hour coverage, minimum coverage um so that uh they're uh available to respond by paid staff. What's that? By paid staff. By paid staff. Correct. Yeah. And it may be that there are ways to um support that with paid part-time as well if there are uh firefighters from other jurisdictions that uh uh want to sign up for shifts and things like that. Um um there's still some more work to do and I'll I'll talk about this a little bit more later. Um but it's the direction that we're going to eventually need to go. How much of this might be affected by the fact that we now have

ambulance service? Very little. Um this this is just the nature of the calls we get. And so Medics is still the first responder for most medical calls. Um in fact, is our ambulance back in service? Uh it's been out for a little while for repairs any day. It's they blew the engine in it. Well, the engine blew in it. They didn't blow the engine. The engine blew in it. As as many of you know, it was a used vehicle when we got it. Um, so we've had it in Portland getting the engine serviced for the last month or so. Oh my gosh. But Joey was supposed to go and get it yesterday and I guess it was held for another day. And I'm not sure this is the right place. I just want to throw the question out there is um whether our ambulance service is kind of paying for itself. Um, we need to go do the work. uh by paying for itself. Yes. Because we're we haven't brought on extra staffing for the ambulance. Um there were some upfront costs. In fact, I think we paid more for the stretcher than for the ambulance. Um yeah. Um uh so the arrangement we have with medics is that we only respond during certain hours when we have staffing. um first they have to call us um and then um we only respond if they've called us and we have staff available and so um it would be so yes it's it's it's any any revenue we get there is extra money we're receiving um but it's yes we bill out um and in fact uh one of the one of the things where it's actually been helpful is with the billing when we go out on Highway 26 for a traffic accident, we bill for that as well, even if we don't transport. So, we

bill we build the insurance company, the auto insurance for the cost associated for with that call. Um, uh, it would be different if we were the first caller, but we'd also probably we would have to have dedicated staffing, not just staffing when available. But I will say this is a it's been a good way to kind of um uh put your toe in the water. Kind of uh a slow what do uh soft opening maybe for ambulance service. Um there there were some um there were some grumblings from other cities within the county over the past year with with medics specifically with their staffing and with the um certifications of the people that were responding. They weren't all paramedics the way they were supposed to. And so some of that though has to do with just what the market is like these days. However, they have a new local manager and uh my understanding is um they're doing much better at being staffed at a level that um that you know people aren't waiting too long. So, um that also is meant we didn't need to respond as much. So, um there was a a request from the fire department for increased materials and services budget as Joey went through there. Um and then um from dispatch there's a request for a repeater and microwave um more on the servicing north of Seaside. Um and uh we'll I'll talk a little bit more about that in a little bit. So So for service that we contract out for Yeah. So, we build Gearhart and Canon Beach uh for these services and that's part of what I I'll circle back on

public works fund budget requests. Um okay, so there's a radar speed trailer. Um I think this was originally supposed to be one of those flashing signs of how fast you're going. Um but what we really want that I've told them is it'll be something that gets um accurate uh counting. So, not it's not a a device to slow people down. It's to measure traffic volumes, traffic speeds, so we have better data and can make more informed decisions on um on traffic. We do get a lot of requests, hey, people are speeding in my neighborhood. Um and right now, the best we can do is uh have an officer sit out there um and radar, and it's not a great use of time. they typically don't find um the level of speeding that often time the residents uh think is there. So So is this not another one of those? No, typically this will be like a um it's like two rubber tubes that goes across the road with a little box and something like that. Um not a trailer. That's not a radar speed trailer then. Yeah, that's what was requested and um that's what I'm turning it into because I that's what we need. So, from experience, having had those radar signs in our neighborhood a couple times, a couple years ago now, they were very effective, especially in slowing down contractors UPS and FedEx um because the amount the the the pedal to the metal that they were um exceedingly using going through a residential neighborhood was very much reduced by the amount that they saw they were seeing through the neighborhood. So, we do have we do have one. Um my experience has been though um they are good initially, but um they need to be moved around and the places I've seen

places where they put permanent ones in and you know within a month or two uh they're almost uh uh invisible to to people that live in the area. So, it's a good thing when you have a particular problem area for for an initial thing, but um longlasting the better approach is different design and and other ways to calm the road traffic rather than trying to get people to remember. I mean, we all know not to speed and we all speed. So, well, I mean, well, I do. since we purchased or we the city purchased the radar signs that they own now, which I thought there were two of um may there may be a that the laws have changed and there could actually be radar tickets issued by the city and which wasn't the case when they were originally purchased. And what you're talking about from what it is more of a traffic count thing than it is a speed measurement tool. And that well it would collect the data on speeds has I okay um but that has different implications as far as safety in the community and the neighborhoods than the radar signs which now have also more capabilities other than issuing tickets could also gather more of the other data that you're talking about. We get a lot of people that come and say, "Oh, people are speeding. People are speeding." But the only time we see it is when an officer is sitting there. With this, we would know how fast people are going over a week. We can see what all the different site and then we can make changes to the streets themselves or the speed limits or Thanks. I got that from what he was saying. What I'm saying is that actual radar speed trailers now can do all of those things and show people how fast they're going. and then potentially also be used for issuing tickets without the officer

there. So that is something if if our council the smarter investment exactly and if the council wants to get into photo radar um that that would be a a discussion for them. I will say the purpose of the counters I'm looking at is not so that you know it doesn't help for people to know they're speeding and trying to get a count to see if there's speeding going on because you're it's like you're doing an experiment and you're you're you don't have a control group or something. You're you're kind of putting your finger on the scale. So if you put up a sign that says slow down or you're going this fast, it might come back and say, "Oh, there's no speeding here." What you need is something where people aren't are kind of oblivious to an actual counter being there. So two different purposes there, right? Um okay. So um we have need for uh new and better equipment within public works. And um the staff in there have come up with a novel idea where um we have um an older sweeper where the sweeper part is is we don't use but the vehicle itself is um in good shape. And so they want to convert it to a swap loader. And my understanding is um what that means is that there are different um attachments that can be put out like a a dump bed or other uh pieces of machinery and stuff like that. And so it becomes a multi-purpose um truck rather than just a sweeper or a backup sweeper. And so they've made that request. Um there's a a request for the parks budget for uh increase in uh building maintenance. Um the big thing is uh just getting some major repairs done to most

of the parks restrooms. Um this was uh something Ed uh Ardan, our he was our interim public works director and project manager had put together. I can already tell our new public works director is seeing more work that needs to be done from his engineering eye within our parks. Um this was that that um request though. Um, so that may be something that, um, as we, as we get more input from our new public works director, um, that may change, but, um, there they most of the I might say all of our public restrooms, our parks need some need some TLC. Do we ever get the new roof on the public works building? No. Um, we'll we'll come to that. It's it's in a future side. I know we've discussed it for years, but Just curious where we're at though. Um, let's see. Uh, mill ponds. Um, we have a problem with some invasive weed and it's a there's probably lots of invasive weed. There's a particular patch of something that's really nasty. At one point they thought it was some I can't remember what it was called. I don't know, Bill, if you remember. There was something that was really bad that's supposed to like really anyways put you in the hospital. what what they determined was it's not weed, but it does need to get uh taken care of or it will take over the the mill ponds. And so we want to um take care of that now before it grows too much. Um vehicle replacements. So um this is again I go back to investing in our departments. Um the vehicles and public works is a hodgepodge of vehicles after they after they have are beyond their useful life for other departments they get passed to the public works department who drive

them for 10 more years. Um it's not a great practice. Um uh and um in addition to the high cost of maintenance and downtime and things like that, um there is also something um when we want to retain our employees, some of that is uh the pride and feeling that the city's taking care of them and getting the the equipment, the tools that they need to do the job. And so we want to get to a point where um we have uh reliable vehicles in public works and then at some point we get to where like where the police department is where we're just replacing a vehicle per year or something like that. But we have some work ahead of us to get there. We started that last year. I believe we purchased four new vehicles in the or I guess current year and uh this uh continues uh continues there. This was we asked I think this was three. Um then last one is this was kind just just one thing on that is that kind of a a net number because you're obviously spending a lot on maintenance and repairs for all these old vehicles. Yeah. It's not a net number but we'd hope to see those go down. What I'm saying is there maybe should be a credit the ongoing expense because yes, you don't have to. Um I kind of want to see those savings first. And the other part is it's it's taking us so long to get vehicles that we may budget for it, but we've got to repair the ones until they get here. I know like for the police vehicles, the orders open up once a year for the police vehicles around the country. people put their orders in and then six to nine months later they they arrive. So that's kind of what we're dealing with. The nice thing is um we

can piggy back on the competitive bidding process that the state has which uh has some significant savings which includes the next one. Um this was not one that was presented with the department head updates but has been added since then in talking with our new public works director. Um, and that's a skid steer. So, think of like a Bobcat type thing, but with tracks on it. Um, uh um as we think of the new the best example of how it's going to be used, the new uh homeless campsite, there will be these individual areas for campers with these um big uh blocks kind of delin areas. Um, some of you have seen um what it's like cleaning up campsites at the at the old camp. Um, kind of some of it by hand, some of it with a little excavator that they have. With a skid steer, it's uh if it's a really bad situation, they just push it in, dispose of it, and it's u much less contact for employees. Also, a skid steer will be able to get back into the back of mill ponds and other places like that. In addition to within the streets department uh and water and sewer, there are all kinds of um uses for it that they'll be able to use, including tools that can be attached. Um uh yeah, so we found uh through the state contract uh another agency recently purchased one and um you know, the the base price on the model they got was was probably 30% lower than the MSRP. And so we'll take advantage of those um that competitive bidding. Community development um uh our community development folks don't no longer want to have paper copies of the international code. Normally for a $1,000 budget request, we

say find it within your existing budget. You can do that. um they have maxed out their budget and so um we have that in there. Um just so you know um like for the building department um they're everything is electronic now. If you're a builder, if you're submitting plans, it's all done electronically. The plan reviewed are done electronically. So our building official will make notes right on the plans, hit save, and they go right back to the to the to the builder with with those comments. Uh everything's done online and and this will go with it and this will be uh kept up to date as opposed to buying paper books. Um uh emergency preparation. I have a couple requests. One is a backup power generator up at the emergency operations center. Um the current one that is there now, we have several of these around the city. They are World War II era generators. I think the last couple times we couldn't get it to start. Um and so um that is something um that is being requested as our in during an emergency that is something that we will uh want to have. Um the tsunami barrel cash restocking, how long ago have they been restocked before or is it was it the initial time that they went out? Some of you are much more familiar with this than I am. three or four years ago they restocked them all with okay I think it's probably been four years because I think it's every 5 years is when the contents expire um we're not sure how we will do that project my understanding is there were a lot of volunteers last time and um uh we know that the properties or the homes that have them um as I was talking to Ann McBride about this um but sometimes if we need to restock or they don't want anymore or it's they're like,

"Come get it." That's what they tell Ann. And so, um, it's like, "Oh, it's in the back of our basement or garage over here behind all this other stuff." So, um, sounds like a fun project. Um, and then, uh, an interesting one, tsunami siren maintenance. Um, we've done some testing in the last year. Uh we have employees that go out during the the testing of of the system and we you know sometimes they're working, sometimes they're not. And we've had um some repairs done. Um the repairs are not cheap. Um that right there is about what we spent this year to repair one of them. Um we have many. Um at some point if we're going to continue this, we probably need new ones. Um, but if we're going to continue in the short term, uh, there is some maintenance needed. I have quite a few thoughts on that that we can save for a future discussion, possibly here or or later. I think those are about 12 to 15 years old. Sounds about right. Because we replaced them when I was at JobCore and we gave our old ones to tongue point. Yeah. Wow. So about that's about when I remember that happening. I mean, they're out in the weather. It's especially when you're close to the beach, that's it's a rough environment. We have four of them. No, we have like 10 or 12 or something. Yeah. Including one in Gearhart, although Gearhart pays to maintain theirs, but Yeah. So, we have some along the beach, but we also have some back here. We have some in the middle. H that'll it was interesting seeing the map on where they were placed because someone put a lot of thought into that and they were spread out pretty good. Yeah.

Some of the discussion is um what tech technological advances are there now do we already have the capabilities of and that's a discussion that that that we should have. um non-dep departmental budget requests. Um this is for uh it a new server uh virtual server and then uh budget for this isn't a computer replace right uh throughout the city. We do have quite a few aging ones. Um okay, one slide for all the enterprise funds uh convention center um uh replacement of the sound system in the uh Pacific Room which is the largest room. Um so my philosophy I think the city's philosophy on the convention center has been where we are very cautious in the general fund and other areas. This is one area where we have competition and we need to be um you know at at I won't say cutting edge but we need to be up there and competitive with other venues and the current system um is quite old and does not have many of the capabilities and there's also some um sound engineering that needs to happen so that the sound is better wherever you are in the room. Um, and there's some technology I can't explain that that does that. When we look at this list going all the way down to visitors bureau, would all of that qualify to be paid by tourism funding? Yes. And I would add the airport as well to it at the bottom. Oh, airport at the bottom. Yeah. Yes. I'm having trouble. Yeah. So, convention center and visitors bureau. Um, those are all paid for out of our transient lodging taxes. Um, and that's one of the ways it's it's it's it's easier for our convention center to

stay state-of-the-art and um competitive is because we have a strong funding source for that. Does the city get money speaking of airport? Sorry, I skipped all the other stuff in between just because jumped in my grade. Does the city get money from the port for the airport? No. No. I mean half. So the uh there is no there is no revenue for our airport. However, um in the past there have been there has been revenue from FAA. We currently don't qualify for that. However, some of the funding here is uh for some smaller projects that if done will put us in a better position to again qual qualify. So, um, you need to have 10 homebased airplanes, hangers, or something like that, um, in order to, um, qualify for FAA funding. Um, we have five or six. So, there are plans to build more. Um, they're we own the land. They're privately owned, and so we would work with, uh, builders to do that or individuals. And so, I think the goal is to have at least 12 uh, hangers. So hopefully there's 10 that are based here and uh then there typically is enough to do things like the maintenance on the asphalt and some other um things that are kind of necessary for the airport. I believe we've asked for money from the port before given that our all of our residents pay taxes into the port district. We are we should be entitled to some money from the port for the airport. But that's not what the board says. not. Yes, that's right. Um, we have to get the taxpayers to get on board and and rah rah that. But just because it's been turned down previously doesn't mean it shouldn't be asked again.

Sounds like a good job for our uh council leaison to the airport. Chris, if you're listening or watching later on the convention center, I don't see anything about the HVAC. Did we solve that or that's still on the these are aing new. Yeah. Yeah. There's a lot of projects that are this year that are carrying over. Uh new website visitors bureau is just wrapping up their new website. Convention center needs one. Uh the main thing is providing uh more tools for prospective um bookings that can go on and um uh get a better idea of the things that are available and um just more interactive uh in in that area. Um and then an increase in operations budget. Um I have the details. There's about eight different things um where as uh Brian has been able to track and know over a couple years where we're consistently um uh over budget on different uh maintenance things. Um and so if you want that breakdown, we we can provide that. Um we need a new garbage truck um because it primarily services the prom. Um, we're calling it the prom garbage truck so that uh we can be paying for it that way. Um, and um, they're not cheap. Um, uh, and I don't know how we purchased the last one, but the last one you have to lift up. It's not great from a workers's compensation and for our employees until we have one that's much um, easier for for them to use. Um but um uh you during the high season this is this is going seven days a week. Um and this is uh regularly used and so I believe the one we have now we would keep as a as a backup. They heavily

used. I think last 4th of July they emptied garbages and there were some fireworks that were still going and started a fire. They had to go find a street somewhere and dump it all out so they could put it out. Am I adding gas to the fire t? You are adding gas to the fire. Um uh an increase in the budget. So visitors bureau pays our association fees for the world mark. This is for um for the parking garage. Um and so increasing it. There are increases each year and we've just never updated their budget. So they've ended up kind of going over in that item but under somewhere else. So this is to kind of get them caught up there. How many parking spots? Two floors. Yeah. And it's that Oh, I don't know. It being It's way more expensive than I think it should be because that's about we pay about five or $6,000 a month for that. That's insane. Yeah. Um, another reason to have a vertical evacuation tower. Uh, so, um, Josh has some plans to update, redesign the tourism grant program. Um, he wants to split it into two different types of grants. So, uh, basically the budget would be $50,000 and 25 of that would be for, um, kind of tourism promotion events like they've typically have been doing. But what they've seen more and more of are requests for like um, tourism related like community art and beautifification projects and things like that. Um the kiosk was an

example that SDA got um um money for that and things like that. So um kind of dividing them up and getting a little more specialized. Um we're going to award grants in this area and award grants in in in the other area. I would say that the request for art came from the tourism committee. Was it the TA? Okay. Um uh within water um a vehicle replacement um two of those in sewer um yeah don't ask me I I should tell them to round the numbers because otherwise they're going to say show me the quote. Um they probably have one, but and then uh within the sewer, um we have a um truck uh we have a TV truck where we go and TV the sewer lines. The video equipment and the truck are all one piece of equipment. Um and it is old. I think it all stays on the truck unless you burn a DVD in the truck of it. It doesn't save. Anyways, uh we need to modernize that and the new equipment can be used with any uh truck. So, this is they'll go out um part of keeping our liability down on sewer backups is is going out and on a regular schedule and TVing the line so you can see problematic areas ahead of time, but also when we have leaks or uh other problems in the sewer line, they can diagnose them quite a bit faster. Um and then the airport maintenance. Um I think this cost is mostly has to do with um there's quite a bit of um um vegetation removal reduction or trees stuff like that where it's growing

up and encroaching on the airspace of the um landing area. [Music] Okay. So these are those are all the budget requests uh from the different departments. Uh one last thing that uh is kind of one of those optional things that we're looking at. Um for those of you this is uh been an ongoing discussion since I got here last two years. Uh our pension um is really not funded well. So the top uh part up here this is the um funding level. Obviously, this was the 2008 um what happened in the stock market built up, but it's just gradually been getting uh uh lower and lower. Obviously, um a perfectly funded pension is at 100%. I think the Oregon PERS is at about 77 um and um we are higher than that 55 now because of changes we started implementing two years ago, then again last year. things to do with even the model uh anticipated a certain rate of return but the city's investments were much more conservative that that weren't projected to get that return and it's been that way for a long time. So that was updated. We have been contributing more as you can see here. This is the percent of um of an employee salary that goes towards a pension. Um this is extremely high and very expensive. Um, however, the sooner we can get to the funding level we need it to be, we can start bringing that um back down. I wish we could say we'll see this again. I don't know if that's true uh will ever happen, but I think we can realistically get it down to to here, which is would be a significant savings for the city and and free up um for the

city. So, this is um this is where we were two years ago. Um and this is where we are today. So um um we got this slide. We So um we have an actuary that does the analysis for us. He's fantastic. Uh there was an older one. He retired from the standard. New one's great. Uh the standard uh who's our provides our pension. they this is such a small and it's smaller and smaller amount of their business that they no longer have an actuary. So we have gone out and contracted for that separately. Um the previous guy would just tell us what the problems are and say what do you want to do and we're like we're not pension experts. Uh the actuator we have now is comfortable saying here are your options and this is what I recommend which is a lot better. Um and so um um last year was a fantastic year for the pension. So when we met about a month ago um he gave us the good news of how well the how how much ahead we were by the end of our fiscal year uh July 1st of last year and because of that we are right on track. Um, uh, I I haven't talked to him in the I haven't talked to him in the last couple weeks, so I don't know if that's all gone or not. We'll see. Uh, yeah, I mean, it changes daily. Uh, I don't I don't open my 401k savings, you know. I'll get I'll start looking at that when I get closer. And so, this is this is the we take the long view on this. So um this is um so if we look at um we are at about 30 and a half% I think

he was thinking we were at 30%. So that's what he modeled. So these lines here get you um actually and how long ago did he model this? A month ago. Yeah. Um, I there was a bigger chart and I cut out some of this and some of that so you could see more detail. And I think these lines shifted cuz I think these lines aren't these supposed to be between 89. Yeah, 80 to 90. So when this um reshifted I didn't see notice that these were So don't pay attention to those black lines. We're trying to get between these two areas. And so um I zoomed in so you could see. So um on our current trajectory at 30% so we are right here follow the yellow line and we get to right here in 2032 we would get to 80% and then 2035 and a half is when we would get to um 80%. Uh that's at the current rate. Um the high end he said was 36. That's the gray. Obviously we would get there um within 5 years. Um and doing all the modeling um what his recommendation was if you get to 32% and hold that for a few years. Um that's about the right time frame. Um and um then you will start to see well the goal would be to hold that level of funding and at that point we'll start to see the contribution rates come down. So I will say when we started this two years ago I thought this was the 15 to 20year plan um but on our current um track what is that if we wanted to get to 80 right here 31 so we're talking six

years. So, in this in the long-term scheme of investing, that's um that's pretty good. I'll take that. Um any questions on pension funding? No, but I I do want to go back to equipment. Um I am concerned that we do not have a generator at the community center. Okay. Word. Work. There will be time for that. All right. Um Oh, and then I Yeah, showed the one that that he recommended and that that we're also recommending as well. Um, so this is what that cost is. It gets broken out into the different funds since our employees are paid through all the different funds and that's what so we need a 1.5% contribution increase. That's where the cost is. If we do this though, this is the last year that um that we need to increase it. Um we can just hold steady. Um obviously the model anticipates good years and bad years and so that's anticipated. This is really to correct the structural issue of significant underfunding in it for a good amount of time. Um okay. So, let's get on to our um talk a little bit about our utilities. Um we're talk sewer and we're going to talk water. So, I've put on here we have uh two years actual. So, these years are all closed out. Here is the current year we're in. This is what Zach projects will be by the end of the year and what's being proposed. We have our revenue up here. These are all expenses. And then we have our revenue or our loss. um from year to year and again because

we're spending a significant amount of capital um that shows us loss uh which is fine what I don't want is uh losses on an operational standpoint meaning that we are taking in in user fees enough to run the department now ideally it should be that and we're setting aside some for capital as well um but you can see what what kind of a hit that that is doing to our um kind of our ending balance. So both in the water and the sewer um it is we can talk about a comfort zone of where we want to be. Um so this anticipates a 3% um increase. Um so as we looked at it for the for the budget committee, what we'd be looking for is a recommendation for the budget amount. How that gets put onto uh how the 3% increase in revenue gets translated into utility rates will be a discussion that we have with the council when we go to adopt the budget. Talk about another 3% rate increase coming up. Yeah. What was our rate increase last year? We have two years. I'd have to I'd have to look at what the exact number was, but it was it was north of 15% of 20 on both water and sewer. So, goal was to take care of that and then be able to have an annual right kind of an annual cola. And just and just to remind everyone um both water and sewer but more so which one was the more problematic one when we first started two years ago was it sewer um that was the one we had a more dramatic increase the first year or over two years. um the rate increases that we've done over the last 2 years was only to get us to break even operations, but it would had nothing to

do with um any kind of raising funds for capital. So, um you know, you could just do that rate increase administratively instead of involve the council. Is that um no, I don't have that that authority. So the the one thing I will say is more sense the one thing I will say is um it it's clearer when you get into what the actual um rate uh change is. But um you know if nothing else even if we're nothing else change that keeps us um just ahead of of what inflation is. I think as we were doing calculations over the last year it was like 2 and a.5%. And so um so as we talk sewer um this is I think we'll talk about some of the projects but um question would the flexibility on the TLT play into that at all? Well if we had flexibility uh from the state yes we could potentially not have to increase rates. It didn't go through. Oh, it didn't go through. Oh, there we go. Now, I will let me say yeah, it's not over. So, and I will say this is one area where there is an argument that our tourists well some of our tourists pay their fair share. Meaning, um the hotels and the restaurants pay a significant amount for their sewer bills, for their water bills. Um it's those those day trippers that don't contribute to that as much and just take the uh uh the free water that 3% over whatever the percentage was to the commercial. Yeah. We hit them a little harder. Say well

what about our heard about it? Um yeah it's it's the the real impact is where we are spending general fund dollars basically property tax dollars on things like uh roads and parks and other things that are used by tourists and that's some of the flexibility wants we wanted to come in. So can I ask um on two lines materials and services you're actually proposing less than you're projecting for the end of this year? Yeah, but we're keeping the budget the same. And so, um, so this is what we're budgeted. Um, we could talk to Zach. This is a projection of our spending continues. There is some ability to not spend as much, but we'll keep an eye on that. There wasn't, as the as the public works director reviewed the budget, he didn't think that there was a need for a budget change. This is the kind of thing where if we see a pattern like this consistently for a few years, we probably want to look at addressing it. But if it's more of a oneoff, we don't want to necessarily just increase the budget. And it revenue loss losses in PNS. So the 1.7 million is really insight. Yes. Sorry. Yeah. Should be negative. And that really comes back to um it's the capital right here that that puts us over. So um in the sewer what we have budgeted um is we've talked with the improvement commission about a sewer project on um that's not coming out here though that would be coming out of the urban renewal agency. This is a um more dire situation. It's the sewer lift station or pump station on 12th and Holiday where 99% of the sewer flows through the city and

um that thing could cave in on itself at any point. Um most of the concrete in the concrete lined or the concrete well is you can push your finger through it. Um uh and so that's that's a that's a more dire situation. In fact, we were under uh an order from from uh from DEEQ to get the listation over on Wahana fixed. Um once we So once we explained to them the extent of the problems over here, they said you don't have to prioritize this one first. Um, I think our goal would be, well, I don't know, be it the same time. The, um, the one on Moana would be a a new station. Um, the one on 12th is a rebuild of of what's there. So, it's like 1.2 million. A brand new pump station is closer to 8 million. So, um, not not cheap. So, how much is the one on Wana going to cost? It's It's just over 1 million, maybe 1.1. It's a lot smaller. So, um I think I think is that the only new sewer one? Could we have a sewer master plan that's in there? So, oh, there's a slide up ahead. So, it's uh the replacement airator. If that doesn't get done uh this year, if if that gets done this year, that that amount will be reduced by the course. And I've got I've got a slide that has the list of projects, but I'll just kind of show this. So, yeah. um this is where we are. You know, we want our revenue to be just just above our expenses. We're fine take a big loss in this year. Um seeing that we don't want to raise it to get to that because this is this is a one-time thing. So, I think we're do we're doing the right thing there. Um

red line reflect the 3%. Yes. Yes. Um the one thing I will say is we are um now I don't this I think what is this a 3% increase uh continually on the capital. Um but that being said um when the sewer master plan is completed it will come with a here's your project over the next 10 years and that's where we go in and actually build in the model and look at a 10-year run of okay how are we going to pay for this? what are we going to get in terms of grants, loans, user rates, and things like that. And uh it'll be um less uh I won't say less variable from year to year, but we'll have a long-term plan. And the goal would be to smooth out uh any any changes. Um water um water is uh tighter than sewer. Um but uh the the prospects going forward uh look better. And so um the reason revenue looks so high here is um so we have the water tank painting project that we received a forgivable well partially forgivable loan from the state from business Oregon. So we anticipated the project to be about 900,000. So, we requested financing from the state of a million, which we were approved. 500,000 was uh the principal would be forgiven. 500,000 would be a 1% loan. Um, which is great. Um, we went out to bid. The bids closed a few weeks ago. We only had one bidder. And if we were to do the whole project, it was $2 million. Um, the base of only doing the interior was about 1.2 million. But in um working with some engineers to

actually put the bid documents together, they really strongly recommended that we need to do the outside as well. It's a it's a metal tank. Um and in this environment, it's they say these are supposed to be a certain distance away from the ocean. It is by like maybe 50 feet. So um so we they want to um uh so we think it's important that we um paint the exterior as well and protect that. So the way it's being budgeted uh bid is we have the base bid of the minimum needs to get done and then we have some things that we'd like to add on. We'll see where it comes in. um our public works director seeing that we only had received one bid talked we had several companies come out and our pre-bid meeting who were interested but they did submit bids and it looked like the um time frame in the bid documents was just a little too tight for them didn't give them enough flexibility um and I think some of that was we want to keep that well um out of service for as short amount as possible um but not to the extent that uh we want to pay that much more. And so um in about a week or so, we anticipate going out to bid. Paul would like to have this project going in July with the goal of doing the exterior stuff over the summer and then by September, October starting to do the interior stuff when the water demand on the city is not as high. But operationally, we can have it out for longer periods. It just means some overtime for we get to make the water on the weekends. Right now we make the water on Friday that we need for the weekend. Um but it's better to pay some overtime for a couple of months on the weekends than you know a million dollars extra on on the tank. So um and then you

can see um so a million of this is the the funding within the revenue and then um also in the in the capital you see that jump there. Anything else Zach you would say on on that? So so a million of that is uh like you said the the loan that he was talking about. Oh, there's yeah, there's another big thing to talk about. There's also another So, in last year's discussion, uh we found that there was a loan that had been taken out between two funds in the city for almost 1.3 million um from the convention center bond reserve to water that needs to be paid back. And so, um, it assume we we we're going to pay that back this year, but doing so and doing everything that we need to do next year puts the puts the fund negative. And so the solution to that without needing to raise rates to accommodate for it was to take another loan, pay back loan A, take another loan from the convention center uh for the $600,000 difference to make the to make the fund balance uh positive again over the course of the next few years. And in essence, what that'll do is it'll get us through in 2027 is the last payment for our water general obligation bond. And if we can get to 2027, then the funding picture looks better. Um, so the purpose of taking that that loan from the convention center on the heels of the other loan is to bridge that gap from here to there uh to the point where it's it's um generating a surplus again. So, is the second loan less than the first loan that we're paying back? Yeah, it's about it's it's less than half. Okay.

So, the the the loan from the convention center this time around is 600,000. Yeah. And paid back over the course as and as a refresher, sorry, an emergency home. I had to text back, but um the the last loan was a loan to keep operations going. um instead of raising the rates to to the point where they were paying for themselves and those have to be paid back within the next year. Um and uh this one since it is for a capital we have a couple years to um to pay it back. Um which is why we want to well we have to pay one off and then um this was a way doing that smooths it out. Otherwise um otherwise the expenses would be much higher in this year and as you can see if we go back no that's not back I mean this right here only this is what our ending balance will be in the water fund so we are very tight in terms of what will be left um but hopefully um hopefully this is the last of the big projects we have we'll have some projects in our watershed in upcoming years, but I don't anticipate anything significant um projects we we will be after we complete the sewer master plan, we'll doing the water master plan update. So, we'll see what comes out of that and if that predict that tells us something, but it certainly should not be anything close to what we're talking about in sewer. The the other hope that I have in rebidding this tank project is that we get bids that come in lower than than the initial one. And so by the the difference there will increase the fund balance at the end of the year on a one to one margin. Right? So um all all that

to say this is the data we're dealing with right now with the with the budget committee. By the time the council goes to adopt the budget in June, we should have an actual number that from that comes back from the bid. You think those bids would come in lower? That's I don't because we only had one bid and we had we had uh at least three other companies that wanted to bid but declined because the time frame is too narrow. So by rebidding we expect to get three or four bids. So again, better competition, we'll we'll we'll get the best price. Any questions on sewer? All right, capital projects. So here are the capital projects that have already been included in the budget that are not yet complete and will carry over. Um the first one, HVAC units at the convention center. Um where that has been stuck is um in putting the right kind of contract together. Uh luckily with our newest uh public works director who has extensive experience in bidding and bid documents, he is working with Brian to put that together. So we expect finally to get that uh going. Um um as that's been I think it this is the can't remember if last year was the first year or if it was the year before. This may be the second year. So um uh so the other thing I'd say is one of the reasons many of these are carry are carryover is um public works does a lot of these projects and last early last fall we lost both public works director and the administrative assistant in public works and so our project manager who would be doing a lot of these was doing all three jobs for a good uh five months or something like that and so a lot of them were on pause. So, um, we still need to do the HVAC, uh, upgrades

at city hall. Uh, as I found out from yesterday when the system that's above my office was, uh, leaking into my office, uh, the new roof at uh, public works, um, I it's being worked on. They just haven't had the time to actually get it done. When I say worked on, I know Ed's been um, working towards getting quotes and things like that. And all these items are budgeted for already. Yes, these are just and they may have been more last year to the extent if some of them we've spent some of them. So these are already are in there. This is just a refresher of of what's in there. Um HVAC at uh public works uh the sewer dryer um we continue to make progress on that. We finally for the for the council um just a few days ago finally signed the new agreement after the attorneys have gone back and forth for um a long time. Um I will say it was everything we got everything we wanted which was great. Um again continuing to update sewer master plan um vizard guide storage. I've asked Josh to kind of not only well in addition to getting a quote that has been working together to put together is look at some other options and then we'll just compare on on the life of it and see um you know is it better to rent or lease space or is it better just to own our own. Yeah, we've already talked about the water tank water master plan um will come on the heels of the sewer master plan and then acquisition of land in the watershed. Um like I mentioned to the council already we are trying to purchase about a million dollars worth of extra property. Um we put in for a grant we uh going to put in $200,000 uh and so they would provide $800,000. Um, I think there were seven

projects that applied. They had enough enough funding for the first five. No, there are six projects. They had enough funding for the first four and we were number five. Um, with that being said, um the, um, North Coast Land Conservancy who we've been working with on this, um, the, uh, community that was first in line or got first place is someone they were working on their application as well. And this was uh after multiple years of applying each year, they finally made it and they were at the top of the list. So it um they said it's not necessarily unexpected. And so um uh everything looked good. It's just they only had that much funding. There were two kind of um the only the only two concerns with our application. One is our watershed um was it the watershed plan um which was put together I think 2019 um it's what your plan is for your wershed and the current one is um a plan to basically log our wershed in order to raise the funds to purchase more um that doesn't go well with OAB that's trying to Uh so that was now we told them and they believed us that we're going in a different direction but that is our adopted document. So um I will say it's been great partnering with the land conservancy. They noticed um just the other week that a grant had opened up for updating those plans. Um, and so we are going to be um applying for that and we're hoping to get $70,000 from a different state grant source. um we need to put in 10,000 and we'd get I can't remember if we get 60 or we get 70 but then we would go out and contract and have an updated plan

that reflects our our current plan which is to expand it um uh for the purpose of um uh conserving it uh letting it grow managing it so that we increase u both the water quantity and the water quality um and in conversations I think we met earlier this week with conservancy. Some of the studies have shown that um in areas that have a well-managed forest, it's about a 50% increase in the water flows at the lowest point of the season compared to the same areas or similar areas um that don't have those protections. And so um again thinking of you know a generation several generations next hundred years want to ensure that we have the water needed for the city. So the good thing is there are lots of funding sources available. We are also in talks with the climate trust and so there are those who want to purchase our carbon credits on the watershed we have now. So, in exchange for agreeing not to log it, they're going to give us like a million dollars or something like that that we can then use towards um uh probably either maintaining the the watershed or land acquisition. So, um story that gets money. Yeah. So, before we move on from this, there's been a multi-year plan to put woman showers into the cove. Yes. I don't know if it rises to this level, but the showers have been purchased by Dale and then Mike had them and didn't install them and now they're sitting there. They uh they are I know um it's come up from the parks committee and I haven't I don't know if Bill has an answer. Uh I've been working with Paul. What's that? I'll get an answer. Oh, you got an answer. I was I've been working with Paul and Ed on that. I think we finally have some momentum. The the the problem is the way it was going is the

way Dale was designing it is we are going to have to bring in an ondemand gas water heater at the shower site and it was just like it was not a good idea and so um that's what kind of the pause is on but I know there's been pressure back on and they're looking at it and what's the update councelor Pazilski? update is they've got a design for it and they found where the water heater is and they've got a place for it and it was presented at the parks committee and they're just about ready to June is what he's trying to do. Wow. I get lit up about that one constantly. So, thank you. Are the other showers there hot showers too? Yeah. Okay. Interesting. Cold showers going to be No, it's it's warm. It's just on the other side. I think there's a the women don't necessarily want to shower white dedicated children's room. Yeah. They were going to move them out where the picnic table is, right? And I think that still is a plan. Yeah, it's going to go out there. There's going to be a paved area between 10 by 10 and 10 by 20. Depends how they come. I thought I thought they were going to do that. I thought it was going to be cold showers, though. But they found they found where the water heater was. There was a water heater already in there that they're going to be able to go from. And so all all I know is I did not want a mechanical gas thing out there. Yeah, warm showers were much more popular with surfers. We had conversations about putting a rack where people can actually It may also be popular with everyone. For women, do we charge for those? No, they're free. Open. It's It's no different than like the showers you have down to turn around except for these ones are warm. You get two seconds at a time. Yeah. No soap. Really? Three shower heads. Um new project. Um

uh I mean we've taken on a lot. Um but we want to at least get the budget here so we can be be moving forward. Um just above our headworks, we've noticed that um on the road it is starting with the other river coming through here. The road going along it. it's carving in and it's undermining the road and so we need to go in soon uh so the road doesn't collapse. It's not a road that we need other than it provides our secondary access and so um the more more pertinent issue is if it does uh there will be a large amount of sediment that'll get sucked right into our our system and we want to avoid that. Um the next two um is really what I had Zach do is budget almost all of our money that can be for roads. Uh we started going through with our new public works director the pavement preservation plan. We don't there's a lot of work to do to decide what projects are there. We're not there yet. We'll continue to work on what those are, but we want to have these uh funded. So as soon as we have that plan put together, we're we're ready um to go. Um this is the the one pump station we've already talked about. This is for the urban renewal agency. This is the one that's budgeted um in sewer. And then uh park design studies. Um so this would be um landscape or landscape archite architecture designed for the north 40 um for estuary park and for um Quattat Park for a uh improvement there. So, um, instead of just kind of replacing with what's there both Quattat and the estuary, we want to bring in some that can, um, maybe give us more options and how they can be used and

things like that. And for Quadat and Estuary, we can use TLT. I think for North 40 as well. Good deal. That's my plan. Yay. So, um um I think those will be um exciting projects, especially I mean these are really important, but no one's going to see them or care about them, but um here's something right here for our residents to be able to use and I think that will be um well received. What was that? Don't forget to say and our tourists. Yes, they may not see it, but they'll feel the Yeah, they'll be okay. What else we have? Okay, so um last thing I have for today is going through all the budget requests. Um you saw all the requests. Um um I don't take out the ones I don't recommend and things like that. I want you to see them. Some of them like our grant u may need to come before you for a couple years till they get recommended. Um, some I may never recommend, but there uh I want you to know um uh what our department heads are requesting. And so what I've done is I've gone through and with the help of Zach um put put into the budget what I'm recommending. Um but this will be an area of uh conser of uh say conservation uh conversation at uh next week's meeting. So, next week we'll have the uh public hearing and then uh discussions from from the budget committee on is this the right um combination of uh of new budget items. Are there other budget items that anyone on the committee or on the council wants to bring forward? So next week would be the time to kind of bring those forward um for consideration and and deliberation and um and we'll we'll

kind of go through this is the you know what do we want to do new next year. So within the general fund um again I'm heavily gravitating towards we have some savings. Let's get some things done with that that we can uh so replacing these doors. I don't want any more workers comp claims. Uh the main hall door is the ADA. Um I'm not sure how badly the HVAC is needed at the library, but I at least want to have some money in there to get a study done to understand it. Uh I don't think it's the highest priority, but but I would hate to uh need it sooner than than we've budgeted for it. Same with the library furniture refresh. Um after it was described to me what they go through, I was all in favor. Uh, I'm not recommending uh any re uh renovations at the administrative side of city hall and not recommending the um the extra 10 hours for the youth library assistant. And I think it it's a great thing. It's just very expensive for 10 hours of extra programming. And so um we had the same request last year. So you just think it's too expensive? It's $40,000 to to get um 10 more hours of programming what it is. And a bunch of federal funding has gotten cut from the library, so they're not going to have as many youth programs as much. I don't I have to go back and talk to Jennifer. I think it it affects us more indirectly than than directly. it may be um some of the um services get through the state and things like that. The the extra hours for the youth library assistant allow Marian the youth librarian to actually go out into the

community more and to uh work closer with the schools and with the organizations that have children. Mhm. Um, so she's doing double duty at this point trying to do the programming at the library as well as the outreach that is um essential to uh I I have no issues with the request. For me, it's just prioritizing the money that we do have. And so this is precisely what we want I want to have you all um discuss and and um deliberate on next week is um you know we fund one thing that means we can't fund others and so what what's the priority this is these are just my recommendations public safety um continuing with the patrol vehicle replacement um the communications manager reclassification the tasers I want to come back to my asterisks uh not recommending the increase in materials and service budget So I've reviewed the budget. Um while there are some areas where they are where they are over um there are other areas where they are under and I think there is some reallocation that can happen and not an increase in budget needed. I will say um with our new software it's going to be much easier for our departments to be tracking that and stuff like that. Could you explain your ask? Yes, that's yeah. So these are both ones that I think likely we need to do and I support but there is more work needed. And so what I am proposing is that we budget for these but we budget it in contingency not in the department budget for contingency in order for us to spend it. Um we need to come back and get approval from the city council. Um, I'm very supportive of the two full-time firefighter positions. Um, but

there are two things I'm looking for. One is if we do have the budget to do it, um, I think we need to be applying for grants similar to the ones we already got where they pay a significant amount for the first couple of years. That's that's money we'd be turning away. I don't know right now what the status of the funding is, but if it's not here, I I suspect it will be uh coming back. That's a a a popular funding that most people um are support for the firefighters. And then secondly, there is some more work to be done on um how the shifts are scheduled. Um uh just the way our department has grown up, we're heavy on the admin and I want to see more of that turned into operations dealing with the coverage. um before I'm ready to sign off on that. So, there's some work for me and Zach and John to do with with the with the fire department. I think the need's there. The current proposal, I think, just needs some uh changes. And so, we would come back to the council when we're ready for that. Um the repeater and the microwave I think is is likely. I want to understand it a little bit better. But also, we need to do a um since Zach and I have been here, we have not done a comprehensive study of what is our dispatching costs um how how are we um dividing that up between the three different cities. I have a feeling um while their call volume is much less, I don't know if we've been capturing everything. We we probably are doing well at capturing the operational side of dispatch, but I don't know about the equipment and whatnot. So, I think there are some things I want to understand better there and have some discussions with Gearhart and with Canon Beach before we pull the trigger. Um, for example, I don't think this is the case, but if this if this

were only serving Gearhart, I'd be asking them for the $150,000. Um, I don't think that's the case, but that's the kind of discussions. Uh I think there's some more work needed. So this is a good um placeholder. Thank you. Um public works um the radar speed trailer and or counter. Um uh the again it's really um all of their requests were for one-time purchases or one-time projects and um many of them like the vehicle replacements will get us to where um that can drop off till we have uh more of a a maintenance level of replacing one a year. Um things like that. um they weren't they didn't have any that were um ongoing which we're in a better position to fund these uh community development. I did say tell Jeff they have $1,000 to have updated building codes. Uh I do think we need to continue with the barrel cache. Um I think the EOC backup power generator um that's a tough one where it's very expensive. if it's maybe 80 was it $80,000 for something that you know we may or may not use. Um if we have an emergency and all the power is out and that's the only place we're going to wish we had it. Um uh if that doesn't happen we would have wish we had the money and so this is another one where um you know what's the what's the council's feelings on that. Um I I have asked to be looking at grants for this. In the past, it's been very good as grant eligible. Um, and we did apply for one this year. Uh, we didn't get it. And it sounds like the funding that's traditionally gone for emergency management is shifting away

from some of this physical stuff to things towards um cyber crimes and cyber attacks that have just as much are just as problematic for communities. But that is where the emphasis seems to be. And so, um, we may not have grants available, but, uh, I wasn't quite there yet. Instead of getting the ultimate generator that would be like serve all your needs, why not just get a scaled down generator that would get the job done in a worst case scenario? So, I think the the the real issue is just um having um well, I'm not the generator expert and so I can go ask them. I think one of the issues is um be having something that will have enough fuel and things like that. I don't know what the capacity needs to be in size and stuff like that size of generator to run that port. Well, my my question is is if we're replacing Well, if we're replacing the sewer station on Wahana, the pump station that has World War II generator, let's throw a World War II generator up there. We may have two They already have. Yeah, we may have two or three World Warden two generators. We hook up this radio to that one and this radio. One of them will start, right? Well, we'll just have one of those hand cranks to keep it going. Remember that, you know, we're not having this discussion right now. Yeah. Uh, tsunami siren maintenance. Um, we have the capacity today to go on and put out um alerts, an iPod alert that will hit every cell phone within a whatever area we carve out on the the mapping system. And so, um, I think to replace the tsunami sirens were, um, I think they were about $125,000 10 or 15 years ago, be a lot more

now. And I go back to what is the effectiveness of a siren on the beach compared to if all 70,000 people that are in here on a busy day or or else get a notification like an Amber Alert type thing on their phone of a warning. Um, and let me back up and say this is not for Cascadia. For Cascadia, your warning is the earthquake. You start running when the earthquake comes. This is for a FAR event which is typically you have a 4-hour window. So the question is if we already have the technology to notify every cell phone in the city and those people are going to start moving the few people that don't have a cell phone will see something's going on. And so I think technologically um there are better options that we already have. Um, for some people this provides a certain comfort level and so this is a discussion we certainly can have and it's not my intent necessarily in the budget process to discuss this. I know um Canon Beach recently uh made some changes. um it wasn't rolled out very well I would say and so if we were to consider changes it would need to be part of a very out there campaign about the only reason we would be doing away with this is because we have a much better plan and this is what it is and and things like that. So that is a discussion this at our next meeting. Is that what you said? Um yeah, everything that's in here will be up for whatever the whatever the budget committee wants to discuss. And so um I will get a print out or I mean a PDF. Yeah, I can send a PDF to everyone. Um so so and I don't think that this is so whether or not we have this service, this is a policy

issue for the council. Yes. So the purpose of this meeting is do we want to set that aside for that or not? And so we could set it aside but uh put a placeholder on it. Yeah. That we it's budgeted in case we want to do it but um not authorized to be spent or something like that and then have the appropriate decision at discussion at the right time. Yes. Yes. enterprise uh funds um requ um recommending all of them. Again, most of them are coming out of uh our transient lodging tax and then it's one vehicle in sewer, one uh uh two vehicles, sorry, two in sewer, one in water, and uh then the TV uh replacement for sewer. Um that's the Can I ask a question? Yep. We still have not formalized our goals that we all sat together on as a council and it really would be helpful that we have those available as we are looking at the budget. But one of the thing I do remember is that high up on our goals was to start uh looking at considering etc vertical evacuation structures and I'm a little concerned if we think that this is something we want to pursue that we don't have anything reflected in our budget to start considering it because there's a cost to considering it. you have to do uh feasibility studies, you have to do this, you have to do that. So, um I that's just something I want to throw out in the middle of the room. And I would say um I think the staff said that was probably the highest thing that came out of that. And I think at this point

um we would have no clue of what to budget. Um but where it's a project that um if we were going to budget now, it would be coming out of our savings. Um when we have a better idea of what kind of a budget we would need, what the next steps are um that we would come back and and work with the budget committee to open that back up. Now, we could set something aside now just like these some of the other things we've talked about for something like that, but I don't know if we need to set aside $50,000, $500,000. um um uh there's a lot of work that needs to be done to even just put the what are the milestones together and and things like that. So, it's just um uh new enough right now that there just wasn't enough to put in here. It just it feels like a disconnect for me that we don't have our goals being attached at the budget level because it seems that that's some that's a purpose of both of those things. Yes, I I don't disagree and we get on that. Why is there no money budgeted for the actual park construction? Is it not happening this fiscal this next fiscal year? Yeah, I don't anticipate the North Authority would be built next year. um wouldn't be started at least this fiscal year potentially. Um it could um I think that would be fast but it could be um again if that's and if that's the case and we are using TLT and we have the funds it would be a matter of just coming back. Um, but it may be that once the plan I I guess I would look at we've we've budgeted for uh plans that will dictate kind of what the budget is and again um where it's so we just don't know what that is. Usually I'm just kind of wait till we get a better idea so we're at least in the ballpark. I just feel like we've made a

lot of progress on North 40. We're close to pulling the trigger and getting it started. We're we're close to pulling the trigger on design. Looking at a design. Can I not even at the design yet? Concepts. Can I add one thing? So there is So this that the north 40 is a a project that would be eligible for systems development charges. And so there is $75,000 set aside in systems developments for parks in case that comes to pass. Right. So the planning will definitely not be 75,000 but there is some money there some to start the right there there um there is money there to start it if that comes to pass. The other option would be that we could call this body back into session if we got far enough down that road and say we need to pass a supplemental budget for parks because this we we don't want to wait on this until the next fiscal year. Technical question. What is the point of a change in the budget that only requires council versus the budget? So council can increase the the the budget that the budget committee recommends by up to 10%. That's that's statutoily what you're allowed to do. So um the council also like we talked about needs to approve any spending of contingency. And then if we amend the budget less than 10% Yeah. You can reduce it by whatever amount you want. You can't increase it by more than 10% without a plus or a minus of 10. I'd have to double check. I thought I thought it was really fun adjustments. Fair enough. That that could be true. I thought it was I thought you could reduce it, but there's nothing that requires the budget committee to come back into session. Only if there's a supplemental budget. Supplemental. Correct. Supplemental. That's what if it's more than the 10%.

So, next meeting we'll Oh, sorry. Go. Yeah. Out of curiosity, what was the situation with Avenue S doing that red and bridge and all that stuff? Is that something down the road? Um, so when I first got here, it was budgeted for, right? Um uh but it was it was budgeted for but it had uh 20 or had $9 million of $8 million of grant revenue budget for that there was no grant that yeah so so we had the money to do the road part but not the bridge and so the when I got here it was it was the hope was to do all of it together um I don't think that's realistic and So the Avenue S part will either be considered as part of the uh improvement commission's budget on the urban renewal because it is a project within that or as part of the pavement preservation plan. So it'll be one of those. But again, that will be the tough decision that our council will get to make of do you want to make, you know, 20 streets a little bit better or one street a lot better. and and uh I look forward to those discussions. Um so anyway, so that that's where that is. Um I will say um for those of you who are at our previous improvement uh commission meeting that is starting to get good uh funds in there. So I think there are some significant projects. I mean, being able to do this WANA pump station now as opposed to doing a a minor fix to it and coming back and replacing it later is great. And uh it's only going to continue to um grow in in revenue. And so I think there's some really good things we're going to be able to do. But again, there's going to

be lots of choices, too. Lots of options. We're effectively spending this 1.2 million is just the earnings from this last year more. Yes. Yeah. That but the earnings are also going up each year. So, yeah. So, it's almost like at the end of this year, our ending fund balance will be the same, but we'll have a new pump station. So, with that, I will turn it back to our chair and um I'm happy to stick around and answer any little questions. I will say um as usual if if you have questions, specific questions, reach out to Zach and I. The more prepared we can be for the discussions next week, um the better. Um so reach out uh questions or if you want help understanding something, um we're here um um to help you and um we look forward to it. Next, can I add a couple caveats before we wrap? Oh, he does want to answer your questions. I can't beat you to it. I was going to suggest much better if you could write it out and send it to him. Not call. Right. Something just really quick. Yeah. Because whatever you write is something he's probably going to send out to everybody afterwards. So, Yep. Um, so I I put this caveat out every year. Spencer mentioned it at the beginning. Uh, you know, we we have tried really hard to iterate on this process every year. I think we've got significantly better since we first started. That doesn't mean that this model is 100% bulletproof, right? So, there may be uh there may be formula errors here and there um that may happen. And if you find them, please let me know. TA, I know you will. So, uh but you need to send me the budget in an Excel spreadsheet then because I don't I can't find formula

errors in PDFs. I the problem is all the spreadsheets are linked to different ones. So I think what he means is through the formula, but you can tell something doesn't look right. If the bottom line doesn't look right, right? That's that's what I meant more so. But um yeah, by all means, the more eyes on this the better. Um I know off the bat, please please don't tell me the table of contents is off. I know it's off. Uh it was a mad scramble to get this out the door today. So, um, I will say we were we were printing and ready to go when the last few changes had to be made. I said, "Stop the press. Do it again. I want to have this is our pencils down budget." I know there'll be little things, but um, this is our working document. So, I I don't like to use the, you know, my dog ate my homework excuse, but but last night when Spencer and I were wrapping this up, my computer completely crashed. And so I I lost any ability to work from my office for the last 24 hours or so. So it was a bit of a scramble to get this done. But um uh yeah, with that, let's take a look. Any other comments? And with that, I'll recess until our next meeting. It's next Wednesday, April 16th at 3:00.