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HomeMy WebLinkAboutStudy Session Minutes Budget 2015-10-21 Town of Estes Park, Larimer County, Colorado, October 21, 2015 Minutes of a Regular meeting of the TOWN BOARD BUDGET STUDY SESSION of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in said Town of Estes Park on the 21st day of October, 2015. Board: Mayor Pinkham, Trustees Ericson, Holcomb, Koenig, Nelson, Norris and Phipps Attending: All Also Attending: Town Administrator Lancaster, Assistant Town Administrator Machalek, Finance Officer McFarland, Directors Bergsten Fortini, and Chilcott, Managers Mitchell and Salerno, Coordinator Wells and Town Clerk Williamson Absent: None Mayor Pinkham called the meeting to order at 8:30 a.m. Finance Officer McFarland reported a couple of additions to the proposed budget, including funding for a temporary Administrative Assistant in Public Works to cover the office while staff is on maternity leave. The Emergency Response fund would have a fund balance in 2015 of $21,000 rather than $29,000 because there were additional costs associated with the establishment of the EOC located in the second floor meeting rooms. COMMUNITY DEVELOPMENT The department provides planning services for the entire Estes Valley and building safety services for properties within Town limits. The Planning division would develop a Downtown Plan integrating floodplain management, economic development and land use planning in 2016; continue to support the Watershed Coalition’s planning and project implementation efforts; continue multi-year flood mitigation planning, including short and long term objectives; strive to maintain current levels of service for development review given the significant increase in development activity; develop a revised fee schedule; complete sign code revision started in 2015; and identify options for development review, permitting and code compliance software given Larimer County’s delay with implementing Energov. Staff has budgeted $30,000 in consulting staff to provide assistance with possible development in 2016. Board discussion followed on the need to budget an appropriate amount for consulting services to address the staffing shortage during this period of increased development. The Board agreed to increase funding to $60,000 for contract services. Director Chilcott stated the department would develop a fee schedule that rewards developers who submit complete applications, thereby charging additional fees to developers who use more staff time. Trustee Ericson stated the department needs to recover costs and should not be a lost leader. The proposed budget does not address revenues or costs associated with vacation homes and code enforcement to address regulations for such businesses. If the Town Board and County Commissioners approve the proposed changes to vacation home regulations and the licensing fees, staff would provide a supplemental budget amendment in 2016. Revenues increase with the department receiving additional grant funds which correspond to an increase in O&M. Protective Services (Building) has budgeted a revenue increase to fund a new Plans Examiner position, which is dependent on the revised fee schedule being approved by the Town Board. The new fees are estimated to increase revenues by approximately Town Board Budget Study Session – October 21, 2015 – Page 2 $100,000. The budget includes $75,000 in floodplain management consulting services, $105,800 for a grant funded hydrology study, $20,000 for contract plan review and/or inspections and $10,000 to remodel the office to create an additional work space. Discussion followed on the number of reinspections being completed and the lack of fees being charged. An analysis should be completed to determine if there are issues with the codes or the way in which work is being completed. Trustee Norris stated concern with the adoption of the Dangerous Building Code and the increase in staff time the code would create. He questions if additional funds to contract out services should be included in the budget. Trustee Holcomb commented the proposed budget does not include room for additional services and he would prefer not to be reactive. COMMUNITY SERVICES  Visitor Services – The Visitor Center operates with 6.35 FTEs and 50 volunteers. The center would expand the size of the restrooms and add a family restroom in collaboration with Public Works. The Center would purchase new touch screen information kiosk with the financial support of the Local Marketing District in the spring of 2016. Staff anticipates holding its third annual open house in April for the community to learn more about the Visitor Services division. Expenses at the Visitor Center would increase in 2016 with both personnel and O&M. O&M increases include interior painting, hot water heater, wood trim, bird intervention, and additional funding for wiring for the new kiosk, new museum display, RMNP large format map, increase in utilities, purchase of premium wireless, and an increase in sewer and water associated with the new restroom facilities. Mayor Pinkham called for a five minute break at 10:07 a.m. and resumed the meeting at 10:15 a.m.  Senior Services – Operates the Estes Park Senior Center and its programs, including onsite dining, Meals on Wheels, information and referrals, outreach, facility rentals, public meetings, recreation and social opportunities, and health, wellness and fitness programs. The 2016 budget includes a slight increase in revenues and an increase in O&M due to programming, staff training, and adding Via transit services to the professional services provided by the center. Staff would continue to work with the Estes Valley Recreation and Park District as plans evolve for the Community Center. Staff would achieve certification and obtain licensure through the UCLA Longevity Center to conduct memory fitness classes at the Senior Center. The division does not operate with a cost recovery target at this time. Trustee Holcomb questioned if the center was in line with other centers in the area as it relates to cost for programming. Manager Mitchell stated municipally owned and operated centers do not operate with cost recovery as a goal. Fees are kept as low as possible to allow participation by as many individuals as possible. The center has served approximately 30% more visitors in 2015.  Fairgrounds and Events – Director Winslow prepared the proposed budget prior to his departure. Staff has reviewed the budget and the scope of the department and proposes separating out responsibilities into two separate departments. The Senior Center and Museum would create a new Cultural Resources department and the Fairgrounds, Events, Visitor Services and Conference Center would remain in the Community Services department. The Fairgrounds and Event Center would be combined into one budget. Trustee Nelson stated the separation of responsibilities may need to go further and questioned if the Town has the expertise to complete all the tasks. He commented staff may need to contract out to complete tasks. Administrator Lancaster stated discussions would take place with the new Director to review the skill set of employees, hire new staff, contract out services or change the contractual relationships to Town Board Budget Study Session – October 21, 2015 – Page 3 address work flow. The Town would reach out to the private sector to see what might be available to provided services. The Town works in partnership with Western Heritage to conduct the Rooftop Rodeo and the Town continues to work on trade marking the logos. Staff has been working on documenting its relationship with a number of the partnership such as Western Heritage, Local Marketing District and the Conference Center to clarify roles and responsibilities. The 2016 budget contains an increase in charges for services provided and an increase in rentals for the Event Center. Manager Lynch has focused her marketing efforts on shows that produce revenues such as sporting events, associations, online and tradeshows. Trustee Holcomb questioned who is responsible for marketing the tradeshows. Manager Lynch stated the tradeshow would market their event; however, she directs them to the Local Marketing District to coordinate marketing efforts. Mayor Pinkham questioned how food services have affected the use of the Event Center. Food service has been an issue with past events. Staff has a list of preferred catering vendors along with Rocky Mountain Park Inn. An RFP would be produced next year for a catering company to operate the food vending services at the center. As the department moves forward and addresses issues such as formal contracts for every event, there may be an increase in complaints on fees associated with events. The Town would review the return of each event, including how the event affects the community as a whole, to determine if the event should continue. The Scotsfest for example does not rent the fairgrounds or pay any fees associated with the use of the fairgrounds. The Town spends over $100,000 in waived fees, staff support and funding for housing. Events need to be reviewed to determine if it is a good return on investment. Mayor Pro Tem Koenig stated an invoice should be produced for the Town’s in-kind investment in events. Trustee Holcomb questioned what upgrades to the Conference Center have been budgeted. No funds have been budgeted in 2016 as a strategic plan for the center needs to be developed. The Town has lost business because of the size of the Conference Center and the need for an upscale hotel and ballroom. The center needs a commitment to invest by both the Town and Forever Resorts. Manager Lynch stated transportation between the Conference Center and the Event Center has also become a major issue. A hotel next to the Event Center would help sell the facility as conference coordinators are not accustomed to addressing transportation or providing transportation to their attendees. Visit Estes Park has requested the Town fund marketing efforts in 2016 at $94,000 and the district would match the funds. Administrator Lancaster stated staff would have to cut the budget to provide the funding being requested. The proposed budget has been prepared with a lot of unknowns related to the flood recovery. Trustee Norris stated the decision would be a return on investment with a same year payback. Trustee Ericson stated he agrees with Trustee Norris and we need to make intelligent investments. Mayor Pro Tem Koenig stated they have a citizen directive to provide marketing to the community regardless if the Town provides additional funding. Trustee Nelson commented the $94,000 would be used to get new events rather than promoting current events. He would not support the funding request as it would not be an effective use of the funds. He stated concern with excessive marketing. Administrator Lancaster stated the Service Level Agreement continues to be addressed and the IGA between the Town and the Local Marketing District. Mayor Pinkham stated if the roles and responsibilities are still in discussion that should be concluded prior to making a recommendation on funding marketing efforts. Town Board Budget Study Session – October 21, 2015 – Page 4  Transportation – The budget funds the shuttle services providing 5 routes and 61 stops throughout the valley, operates 12 weeks during late June through early September, and provides services from 8-9 a.m. to 10 p.m. daily. The fund provides special event services with the trolley throughout the year. The budget includes minor shuttle stop modification to improve service, additional service following the Rooftop Rodeo back to accommodations, and ADA accessibility on all five routes. Expenses have been budgeted with a slight decrease in O&M costs. Trustee Holcomb questioned the cost to add shuttle service for an additional 8 weeks to begin services earlier in the year and run it longer in the fall season. Staff estimates the cost at approximately $40,000. Staff has reviewed the potential of developing a transit system in order to access FTA funds. To acquire funds the Town would have to have a year-round transit system, which equates to one day of service during the rest of the 40 weeks of the year at a cost of approximately $35,000 with two buses. FTA would fund 50% of the operation and 80% to purchase capital assets such as a bus. The Board expressed interest in reviewing the opportunities of acquiring FTA funding.  Museum – The 2016 budget contains a slight decrease in revenues and expenses. Personnel costs remain flat. The Museum staff would continue to develop future plans for the Museum building, refine collection through deaccession, develop an online collection to increase accessibility of archives and photographs, take a leadership role in coordinating 2017 Centennial Celebration of the Town, design and bid renovations to the Museum main building, reestablish historic tour and collaborate with MacGregor Ranch for 2016 temporary exhibit. As construction of the collection building with Town funds would not be feasible, staff has proposed using the $200,000 set aside in the Community Reinvestment fund to remodel the current facility. The remodel would provide a viable facility for the next 15-20 year by remodeling the exhibit space, meeting room, and office space. Mayor Pro Tem Koenig stated concern with the collection stored at the Elm Road facilities and the need to address the issue. Director Fortini stated grant funds are not available for exhibit space; however, funds may be available for the collection facility based on how the Town may operate the facility. UTILITIES  Light & Power – The projected fund balance would decrease with an increase in expenses over revenues in 2016; however, the ending fund balance of $4 million would meet debt services requirements. Revenues have been budgeted flat for 2016 with expenses increasing only slightly. Personnel costs would increase with the addition of a crew lead, ground worker and equipment operator to address an increase in workload. O&M has been increased with the replacement of vehicles, addition of two full-time tree trimming crews year-round and the seasonal decoration contract. Capital projects slated for 2016 include installation of tree cable in Little Valley, underground/overhead service to Allenspark and service along CR 43 in Glen Haven, installation of fiber for system automation in the Little Valley and Allenspark areas. The Town’s cost to purchase power would increase by 4.5% from PRPA and would be passed on directly to the rate payers.  Water – The division would increase expenses over revenues in 2016 to complete project work, which would decrease the overall fund balance. The division would replace the North Fish Creek corridor line extension, replace process analyzer, complete automated meter reading installation, completion of phase I pipeline replacement on North Court and 3rd and 4th Streets and begin phase II, continue to review/design of treatment processes at Glacier Creek Town Board Budget Study Session – October 21, 2015 – Page 5 water treatment plant, storage tank piping modifications at Glacier Creek Water Treatment Plant, investigate pipeline bottleneck along the Hwy 34 corridor, addition of a duty truck, continue the process to transfer three private water systems to the Town, and add two additional water operators in 2016 to meet the increased workload due to regulatory compliance and field operations. O&M increases with the partial replacement of membranes at the Marys Lake Water Treatment Plant and the implementation of Lucity, an automated work order system. THEATER FUND The funds were to be dispersed in 2013; however, the distribution was delayed and the funds continue to be held until such time a final decision has been made on how to disperse the funds in 2017 if EPIC has not raised the required funding to build the theater. MISCELLANEOUS Trustee Ericson proposed a merit pool for the employees funded with proposed STIP funds. He stated the 1A sales tax Street Improvement fund has a healthy balance and has collected more funds than anticipated with the increase in sales tax collection. He recommended $235,000 of the STIP program be allocated for the merit pool. Discussion followed on the use of STIP funds for a merit pool and the consensus of the Board was not to move forward. There being no further business, Mayor Pinkham adjourned the meeting at 12:19 p.m. Jackie Williamson, Town Clerk