ORDER-2016-162 : FY17 Mt Hood Enterprise Fund Budget in the amount of $1,544,832.37 (One Million, Five Hundred Forty Four Thousand, Eight Hundred Thirty Two Dollars and Thirty Seven Cents)

Transcript (~12 min @ 1:57:40)

Speakers identified by voice; unnamed voices are numbered within this recording. Auto-caption text — verify against the video.

▶ 1:57:39 Peter D. Mortimer: Thank you. Mr. Gardner, thank you. Mr. Oliveira, thank you very much for coming.

▶ 1:57:44 Speaker 12: Mount Hood.

▶ 1:57:54 Speaker 12: Mount Hood.

▶ 1:57:56 Peter D. Mortimer: Want to do the Mount Hood budget? Alderman Tramontozzi is making a motion to take the Mount Hood order number 2016 out of order, 2016-162. Second the motion. Second by Alderman Forbes. All in favor, please say aye. Aye. Any opposed? Hearing none, we will take up that order at that time. Mrs. Bell, Mr. Gardner, would you join us, please?

▶ 1:58:30 Speaker 4: Thank you again, Mr. Chairman.

▶ 1:58:31 Speaker 11: Appreciate the courtesy. Once again, we're here to present the Mount Hood Enterprise Fund budget. We have submitted the budget this year based upon the actual numbers that we had last year as far as costs and expenses. kept it the same based upon the revenues that we've had I think I was here about a month ago when we were talking about conditions up at Mount Hood we had a great year last year not the best we've had revenue wise but it was a significant increase than I had been from the year before as I think I've indicated in the past so much of what we do revenue wise depends on weather and we're already up a bit this year at this point in the year or about 10,000 up than we were last year and we really haven't even started rolling okay and it

▶ 1:59:29 Speaker 11: looks like it's so far if the weather holds will be in pretty good shape again this is another tough year for us as far as expenses go included in our budget of the bond costs that we have to pay this is the last big year so to speak that we have of roughly 350,000 on the bonds that we use for the athletic fields but fortunately up to this point in time we've been able to to weather the storm without giving up any of the services or the of the quality of the particularly the Mount Hood golf course we've been able to maintain the facilities we've been able to keep the the fees and expenses relatively low without increase of the last couple of years and still meet the obligations that we committed to vis-a-vis the bonds my understanding is that this is the last big year and hopefully once we get by this it'll free up things have been a lot of it has to do with as I said as we're fortunate that Joan fell is in charge up there because the only time we need to talk is usually when there's problems and we very rarely talk nowadays I think that the other thing is the health of the the enterprise fund I do understand or I think I understand that free cash certifications aren't an indicator of how much money that you have on a regular basis I I'm still trying to struggle with that concept but this past Last year in October, the Department of Revenue certified that there was 672,000 free cash in the Mount Hood Enterprise Funds, which the point I think I made last year, and I'll reiterate, is that may not be money we can spend tomorrow, but it's an indicator as to the health of the Enterprise Fund, despite the fact that we've had the bond costs and these extraordinary expenses the last couple of years. I think things were optimistic up there. There's a litany of improvements that have been made and will continue to be made. fortunate the golf management has been a good partner in this regard um and the course even april and may uh you can't get on if you don't get up there early it's just it's incredible the the amount of the rounds that they've had in the last couple of years and a lot of it's a trivial what they do um with joan looking over their shoulder for sure we would submit the

▶ 2:01:57 Peter D. Mortimer: budget and field any questions you may have thank you mr gardner president khan please yeah i'm not

▶ 2:02:00 Speaker 5: I'm not a big fan of enterprise funds, but this is actually an enterprise fund that's a successful operation. The revenues generated from running this golf course fully funds the operation at Mount Hood. You don't use any general city funds up at Mount Hood. And in addition to providing the city with a golf course, This operation is throwing off over $300,000 that's been used over a number of years to pay for ball fields throughout the city. It makes a payment in lieu of taxes to the city of approximately $72,000. And it also pays a water bill to the city in excess of $20,000. So this is like the one time during the budget process where I'd like to commend an organization that's doing an excellent job. This is an excellent, well-run enterprise fund. I wish all enterprise funds ran like this, and then we would be a lot happier, and we would not be here for as long as we are.

▶ 2:03:12 Peter D. Mortimer: Thank you. Thank you, President Kahn. President. Alderman Medeiros, please.

▶ 2:03:16 Monica C. Medeiros: Thank you. Thank you very much, Mr. Gardner. And I think President Kahn said it very well.

▶ 2:03:26 Monica C. Medeiros: well-run department and you know nothing but I hear nothing but good things and I did want to just talk with you again about water I know I had asked last year and I think you had anticipated that the water costs were going to be more so we

▶ 2:03:42 Speaker 11: just go back for one second last year was what I think was an anomaly there was a confluence of various factors that created a large water bill for us last year we had that extraordinary snow which we stockpiled up at Mount Hood and when it melted some of the salt and chemicals from the snow got into the ponds and when July came we couldn't utilize some of the water in the ponds to irrigate the course because of the the chemicals that were involved we had go to city water in in city water the city water bill um was uh was tremendous we knew about the we didn't realize the problem would be that great once we did we we we took steps to try to look at alternative sources i think i told you last year uh alderman Medeiros when we were here and everybody that we were looking into wells yeah and i think when i was here a month ago i may have mentioned We did commission a company to come in, a geology company, a geotechnical company, I guess you would call them, to come in and educate us as to what could be done and to do some testing. The bottom line is they did the testing out by the second hole. And the way I believe the gentleman put it, they fracked the rock that was down there. And what we were getting on this one well was about 40,000 gallons a minute. And once they did this procedure, it's now jumped up, as of our last meeting, I believe Mr. Ford said it was about 100,000 or 108,000 gallons a minute. So that when we did the math with the help of the geotechnical folks, it appears that even the large bill that we had on that extraordinary year would be covered by that water flow. remains to be seen we've been promised a lot of things but it's going in the right direction we're optimistic that we can handle it the city was was gracious gracious enough to work with us last year on on the lodge bill and we were able to you know spread out the payments and in kind of a wait-and-see attitude they were willing to work with us on the on the fracking of this second well we also had an option with this geotech company to to do the same thing on another well that's further up on the course the recommendation based upon the output of this well was that we shouldn't spend the extra twenty thousand thirty thousand dollars to do it it's not worth it you may not get anything and what we're getting out of this well should satisfy our needs a big it's a big relief to say the least that's good to hear and now how about

▶ 2:06:27 Monica C. Medeiros: the quality of the water in the pond now that we've had it yeah it wasn't it was

▶ 2:06:34 Speaker 1: like it was a combination of three or four different things we had a really really hot dry summer our well pump blew up in the beginning the season so we didn't go on on time because it had to be replaced ordering parts and it was salt in the water that just postponed us we had to have it tested once spring came to make sure that the sediments had had died down in it so it wasn't it wasn't that and within three weeks to a month we retested and everything was fine so it was it was a combination it wasn't you know one particular thing and

▶ 2:07:11 Monica C. Medeiros: and did we often take the extra snow up there was that just as this was an

▶ 2:07:17 Speaker 1: extraordinary year yeah I don't think there was any place else anything else

▶ 2:07:28 Monica C. Medeiros: was yeah covered thanks and um i guess then i may have a question for maybe mr del ruso i know we've been just talking a lot about it's kind of indirect costs coming in are there indirect costs that are coming um coming in and funding uh items in the general fund budget from mount hood yes we pay i

▶ 2:07:54 Speaker 11: think it's 67,000 somewhere I think it's 67,000 half a second here which I don't

▶ 2:08:04 Monica C. Medeiros: think is included lots of pages I just want to get the right ones okay yes we see indirect costs on the other funding sources from Mount Hood of 173 thousand sixty dollars it is that does that include the payment in lieu of taxes no

▶ 2:08:29 Monica C. Medeiros: that's a formula yeah is that based on number of employees or number of hours

▶ 2:08:34 Speaker 1: or Cindy and myself for our health and you know the whole the whole gamut yeah

▶ 2:08:41 Speaker 10: Okay. Thank you.

▶ 2:08:42 Peter D. Mortimer: Thank you, Alderman Medeiros. Is there a motion, please?

▶ 2:08:46 Speaker 6: Motion to move the bottom line.

▶ 2:08:48 Peter D. Mortimer: Second. We have a motion from Alderman Forbes for fiscal year 17 Mount Hood Enterprise Fund budget in the amount of $1,544,832.37 to recommend this order for passage to the full board. Was that you, Alderman Boisselle? Seconded it. thank you alderman boy cell all in favor of this motion to recommend for passage please say aye aye any opposed hearing none this order will be recommended the mount hood enterprise fund budget this order will be recommended to the full board for passage thank you so very much for your good