City Council

April 24, 2017 The City Council of the City of Idaho Falls met in Special Meeting (Council Work Session), Monday, April 24, 2017, in the Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 3:00 p.m. Call to Order and Roll Call: There were present: Councilmember Barbara Ehardt Councilmember John B. Radford Councilmember David M. Smith Councilmember Ed Marohn Councilmember Thomas Hally Absent: Mayor Rebecca L. Noah Casper Councilmember Michelle Ziel-Dingman Also present: Ryan Tew, Human Resources Director AJ Argyle, American Insurance Representative Pamela Alexander, Municipal Services Director Kenny McOmber, Treasurer Mark Hagedorn, Controller Brad Cramer, Community Development Services Director Craig Davis, Airport Director Mark McBride, Police Chief Irene Brown, Animal Control Supervisor Danyelle Harker, Animal Control Officer Gayle Contreras, Animal Control Officer Randy Fife, City Attorney Kerry Hammon, Public Information Officer Kathy Hampton, City Clerk Mayor Pro Tem Hally called the meeting to order at 3:00 p.m. with the following agenda items: Calendar Items, and Announcements: April 25, Idaho Falls Fire Department (IFFD) annual awards ceremony at the Colonial Theatre April 26, AIC (Association of Idaho Cities) Spring Workshop at Hilton Garden Inn April 27, City Council Meeting May 1, IFFD Fire Station No. 1 Grand Opening May 2, Budget Watch at Idaho Falls Public Library May 4, Idaho Gives Day May 6, Cinco de Mayo May 8, City Council Work Session May 11, City Council Meeting May 16, Community College election vote City Council Reports: Councilmember Smith stated Community College discussion will be occurring at the Colonial Theatre on May 8. The joint meeting with Bonneville County elected officials, scheduled for May 9, has been cancelled. Councilmember Ehardt expressed her appreciation to the Public Works sanitation staff for their additional assistance to community members. Councilmember Marohn concurred with Councilmember Ehardt, stating the sanitation department will assist with any special community needs. He stated the City Club forum on May 3 will include Community College discussion. 1  April 24, 2017 Councilmember Radford expressed his congratulations to the Idaho Falls Airport for passing their recent Federal Aviation Administration (FAA) Safety and Certification Inspections with zero discrepancies for the second consecutive year. Budget Workshop Part I: Insurance and Benefits Discussion: Director Tew stated insurance and benefits discussion will also occur during the next two (2) consecutive work sessions. He then introduced Mr. Argyle to present benefits history, trends, and data for the previous several years. Director Tew indicated this presentation will lay the foundation for the future discussions/recommendations for any benefits and insurance changes. Mr. Argyle stated the City is fully insured on a one-way retention agreement. This agreement has the advantage of being self-insured without having the risk. Premiums are set and Blue Cross would absorb any claims over the determined amount. The fully-insured agreement also has the disadvantage of the tax requirement of the employer, which amount is calculated into the employees premiums. Mr. Argyle reviewed the following with general discussion: Employee premiums for 2016-17 PPO HSA PPO increase $ vs. PPO increase % vs. previous year previous year Employee $51.15 $0 $10.15 24.76 Employee + Spouse $122.59 $29.29 $18.59 17.88 Employee + 1 Child $76.00 $9.92 $13.00 20.63 Employee + 2 + Children $111.06 $24.69 $17.06 18.15 Family $182.23 $52.52 $28.23 18.33 Benefits did not change from previous year. Employee premiums for 2015-16 PPO HSA PPO increase $ vs. PPO increase % vs. previous year previous year Employee $41.00 $0 $24.00 141.18 Employee + Spouse $104.00 $29.29 $54.17 108.71 Employee + 1 Child $63.00 $9.92 $34.54 121.36 Employee + 2 + Children $94.00 $24.69 $49.25 110.06 Family $154.00 $52.52 $78.52 104.03 There was no increase to the HSA plan, only PPO increased. Employee premiums for 2014-15 PPO HSA PPO increase $ vs. PPO increase % vs. previous year previous year Employee $17.00 $0 $17.00 Employee + Spouse $49.83 $29.29 $20.27 68.57 Employee + 1 Child $28.46 $9.92 $18.44 184.03 Employee + 2 + Children $44.75 $24.69 $19.83 79.57 Family $75.48 $52.52 $22.46 42.36 Employee premiums for 2013-14 (no HSA at this time) PPO Employee $0 Employee + Spouse $29.56 Employee + 1 Child $10.02 Employee + 2 + Children $24.92 Family $53.02 2  April 24, 2017 Total Premium and Percentage Paid by the City 2016-2017 Employee Employee Total PPO Percentage of Total HSA Percentage of PPO HSA Premium Total Premium Premium Total Premium Employee $51.15 $0 $558.78 90.85 $498.47 100.00 Employee + Spouse $122.59 $29.29 $1202.72 89.81 $1072.92 97.27 Employee + 1 Child $76.00 $9.92 $776.99 90.22 $693.14 98.57 Employee + 2 + Children $111.06 $24.69 $1101.60 89.92 $982.71 97.49 Family $182.23 $52.52 $1713.63 89.37 $1528.68 96.56 Combined PPO and HSA average = 92-93%, average of 600 employees on the plans. Total Premium and Percentage Paid by the City 2015-2016 Employee Employee Total PPO Percentage of Total HSA Percentage of PPO HSA Premium Total Premium Premium Total Premium Employee $41.00 $0 $542.61 92.44 $484.05 100.00 Employee + Spouse $104.00 $29.29 $1167.92 91.10 $1041.87 97.19 Employee + 1 Child $63.00 $9.92 $754.51 91.65 $673.08 98.53 Employee + 2 + Children $94.00 $24.69 $1069.72 91.21 $954.27 97.41 Family $154.00 $52.52 $1664.04 90.75 $1484.44 96.46 Average of overall premium PPO = 91-92% Large Claimant experience:  2012 - 8.2% of population incurred 62% of claims  2013 - 3.6% of population incurred 65% of claims  2014 - 2.9% of population incurred 52.3% of claims  2015 - 2.9% of population incurred 58.3% of claims Loss ratio:  Premium paid in versus claims paid out  Large groups are allowed to have 15% of their premium go towards administration Mr. Argyle reviewed city loss ratio with Blue Cross – overall average = 89%. Blue Cross would prefer 85%. He indicated this is due to demographic shift and retirees. Annual Premium Increase History:  Overall average since 1992 – 4.83%  10-year average – 4.19%  5-year average – 3.2%  Trend is generally between 9%-12% Mr. Argyle stated the City is doing much better than the national trend. He believes the City requirement of wellness visits has significantly helped to curve insurance costs. Annual Premium Increase History: 2007 – 7.8% 2012 – 5.65% 2008 – 10.7% 2013 – 2.00% 2009 – 0 2014 – 1.70% 2010 – 18% 2015 – 4.00% 2011 – 10.20% 2016 – 2.98% Councilmember Marohn indicated the City required employees to begin paying premiums in 2013-2014. Mr. Argyle reviewed the rate structures for the previous 10 years stating the 3-tier structure moved to a 5-tier structure in 2013. He stated HSA contributions are not covered in total premium and there is no limit on rollover for HSA. Notable Changes to the Plan: 3  April 24, 2017  2007 – increased deductible from $100 to $250  2010 – moved wraparound plan to basic and major medical deductible  2013 – combined basic plan deductibles  2014 – changed coinsurance, increased doctor copay, added ER copay, rolled out HSA  2015 – changed deductible, added 3-tier, moved to Blue Cross formulary, negotiated increases twice Mr. Argyle stated the HSA was added as an alternative plan due to the concern of the Cadillac tax. He indicated the Mayor wanted to take the focus off benefits and move the focus to wages. Director Tew stated the designed changes forced behavioral changes to employees. Mr. Argyle reviewed City contributions compared to national trends (the City falls within or below the national trends); national trend spouse coverage; HSA national trends; prescription national trends (81% of plans had a 3-tier or more formulary); wellness trends (the City is significantly higher than average); self-insured coverage (this option may be considered in the future); and, Teledoc. Mr. Argyle indicated preliminary negotiations indicates no increase of premiums for this year. Quarterly Financial Report: Director Alexander recognized Megan Randall, Controller’s Office intern. She then turned the presentation to Mr. Hagedorn and Mr. McOmber with general discussion throughout. Budget to Actual Revenue Reporting: Budget Year to Date Percentage Total $154,814,615 $81,575,024 52.69% Mr. Hagedorn stated the revenue is generally around 50% during half way through the fiscal year. The current percentage is slightly higher due to recent collection of property taxes. Non-Revenue Transfer is slightly higher due to recent one-time transfers, the majority of these transfers are based on actuals. Forecasting Budget to Actual Revenue Reporting: FY2015 FY2016 FY2017 Forecast Total $143,969,700 $145,042,580 $147,858,372 Mr. Hagedorn stated Taxes and Franchises tend to be predictable due to property tax levy. Intergovernmental Revenue is also generally predictable, although any grants may be an unknown factor. Enterprise Charges for Services will be increasing due to current trends. Budget to Actual Expenditures: Budget Year to Date Percentage Total $195,194,467 $91,230,859 46.74% Mr. Hagedorn stated the majority of expenditures occur during the summer months, largely due to Capital Outlay which occurs during the construction timeframe. Operating Transfers includes payment to Street Department/Street Capital Improvement. Forecasting Expenditure by Type of Reporting: FY2015 FY2016 FY2017 Forecast Total $145,898,583.18 $153,121,234 $161,554,349 Mr. Hagedorn stated the increase is largely due to Capital Outlay which includes the Wastewater Treatment Plant (WWTP) and the new Fire Station No. 1. Mr. Hagedorn reviewed 2017/18 Approved Projects which were identified in the budget, stating projects are at approximately 57% of the one-time use. Mr. Hagedorn reviewed External Audit Topic – Property Management, stating there are currently approximately 21,000 items which are identified, tagged, and tracked by the City Property Manager. This is a very time-consuming process. Mr. Hagedorn recommended only those items which are more than $500 would be tagged and tracked as 52.9% of items are less than $500. He indicated individual departments would be responsible for those smaller items. This would allow focus on capital asset and inventory testing. He believes the cost to track each item is outweighing 4  April 24, 2017 the benefit. Councilmember Smith believes anything less than $1000 should be considered an expense and should not be tracked. Councilmember Marohn concurred, but he believes software/resources needs to be in place prior to implementing a new system. Mr. McOmber reviewed total balance, which includes cash and investments, for the previous 11 years. He stated balances have increased for all years with the exception of the previous two (2) years which have decreased due to the high expenses of the WWTP and Fire Station No. 1. Reserves from the general fund have also depleted due to these projects. Councilmember Marohn stated due to the City reserves and investments it was not necessary to borrow funding for the Fire Station and/or the Street Fund. He indicated reserves will be built back up from valuation and the levy. Mr. McOmber stated the Fire Capital Improvement Fund was listed separately to track specific costs. Brief discussion followed regarding Ambulance Fund and Payroll Fund. Mr. McOmber reviewed Investment Overview stating the overall rate for the City is 1.64%. Director Alexander stated a significant good investment activity occurred shortly after the first part of the Fiscal Year. Mr. McOmber stated House Bill 130 passed during the recent State legislative session and will be effective July 1, 2017. This House Bill states the Treasurer's Report will no longer be due by the 10th of each month and instead will be extended 30 days to allow the same reporting timeframe as the Controller’s Office. Director Alexander briefly reviewed the following updates:  Three-year spending priorities by Department from the March 18, 2017 workshop have been distributed to Department Directors for their review  2017/18 budget worksheets were provided to Department Directors on April 18  Department workshops with Mayor Casper will occur May 12 - June 1  2017/18 draft budget worksheet due to City Council on June 26  Finance and Investment Committee meeting on June 7. The committee consists of Councilmember Tom Hally; Kenny McOmber, Treasurer; Mark Hagedorn, Controller; Pamela Alexander, Municipal Services Director; Bear Prairie, Idaho Falls Power Assistant Manager; and, Chris Fredericksen, Public Works Director. Moreton Hydro Insurance Discussion: Mr. Hagedorn stated current hydro insurance consists of $100 million. This insurance would cover property damage based on values. The City has also a layer of insurance for flood and earthquake. He indicated no single insurance company will provide coverage for $100 million therefore the insurance agreement will include seven (7) separate entities. Annual cost is approximately $338,000. Approval of this item will be included on the April 27 Council Meeting Consent Agenda. Signage Code Changes Discussion: Councilmember Hally believes any sign code changes take a significant amount of research and effort. Director Cramer introduced Eric Ensign of YESCO, stating YESCO has requested changes to the sign code which have not occurred due to a variety of reasons. Mr. Ensign requested an LED (light-emitting diode)/billboard sign to be located on YESCO property, located on Sunnyside Road, to showcase the service that YESCO provides. He indicated the current code states there must be 750’ radial spacing. The requested change would allow the spacing to be along the same side of the road. He believes this favorable change was discussed in previous conversations of the sign code update (approximately two (2) years ago) although the change was not included in latest sign code version. Mr. Ensign stated, by current code, the installation of an LED sign is approximately 150-200’ too close in proximity to an already existing sign. Director Cramer stated code changes are not a simple process and indicated if the requested change is made YESCO would still not be allowed to construct the LED sign per additional location requirements/restrictions. He indicated staff considered the change during the sign code discussions and was not in favor of the change as this would allow signs closer to the river and the greenbelt. He believes the linear measurement makes sense and the current code is adequate for the time being. Mr. Ensign stated LED signs are expensive and believes they are not economical for the entire City. Mr. Fife reminded the Council that it is inappropriate to discuss a particular situation or individual solution. Director Cramer stated YESCO has provided a draft of code change for 5  April 24, 2017 review, however, at this time he believes there may be higher priority items within the department to consider. At the request of Councilmember Smith, Director Cramer reviewed distances in proximity. After further brief general discussion, CDSC will review the sign code in the near future. Taxiway A and C, Runway 2/20 Rehabilitation Project Discussion: Director Davis stated this project is anticipated to be a two (2) year construction project with each full construction season needed to accomplish the project. He indicated bids were received March 29 with the project awarded to DePatco Inc. The project is funded in the current Airport budget as well as funding allocated by FAA entitlement funds and discretionary funds. Director Davis indicated Congress has yet to approve and appropriate funding, anticipated before month end. He requested approval to proceed with the project to allow completion of the project within the two (2) year timeframe. Upon Council approval, this request would provide limited notice to proceed for up to $1 million. Federal funding, once allocated, will allow additional funding. Director Davis believes this is the best option to begin the project. He stated as worse-case scenario, discretionary funds would not be approved and any entitlement funds would be utilized to complete the project, which would delay any other projects. Approval of this item will be included on the April 27 Council Meeting Consent Agenda. TNR (Trap-Neuter-Return) Program Proposal: Chief McBride stated Animal Control Services have been working very hard over the previous several years to reduce the euthanasia rate at the Animal Shelter. The staff has seen success with dogs but has not seen the same success with cats. He indicated staff has researched a program that has been successful in other communities with reduction in the euthanasia rate as well as reduction in the population of stray cats. He then turned the presentation to Ms. Brown. Ms. Brown reviewed Animal Shelter euthanasia rate stating less than 2% of dogs and 60% of cats (approximately 1200) were euthanized in the previous year. Efforts from Animal Shelter include: cleanup of shelter (which portrays a more positive image), social media, microchipping, vaccinations, work with rescues/other animal groups, educating public, adoption events/publicity/donations, policy and procedure changes, and, ordinance changes. These efforts/changes have made a significant impact to dogs but not to cats. Pitfalls of euthanasia include: that fact that we are killing animals, shelter and City image, costs ($30-$50 per cat), emotional toll on staff, does not control or reduce amount of community cats. Ms. Harker reviewed the TNR Program stating colonies of cats are trapped, vaccinated, spayed or neutered, ear-tagged, and then returned to same location. This process will help reduce the number of litters, will help reduce the amount of diseases being spread, and will reduce the number of cats brought into the shelter for euthanasia. Ms. Brown stated this program will also reduce the number of nuisance complaints of cats. She indicated the cost for the TNR program is similar to current costs. She stated Ms. Harker and Ms. Contreras applied for, and received, a $10,000 grant to start the TNR Program for approximately 200 cats. An additional $10,000 has also been committed from other organizations. Ms. Brown stated volunteers will trap and transport cats to veterinarians for the spay/neuter procedure. This will allow staff to perform other duties. She believes benefits to the City include a better public image, fewer costs, less euthanasia, and, fewer community cats. Ms. Brown briefly reviewed success of other large communities. Chief McBride indicated this is a project only, this is not a request for an ordinance change. Mr. Fife indicated other communities have passed an ordinance to avoid possible liability or the negative aspect of a cat property owner. Ms. Brown indicated Animal Services staff currently decides/determines if a cat is owned or feral. Councilmember Marohn believes it is the responsibility of pet owners to control their animals or accept the consequences. General brief discussion followed. There being no further business, it was moved by Councilmember Marohn, seconded by Councilmember Radford, to adjourn the meeting at 5:38 p.m. and move into Executive Session. The Executive Session has been called pursuant to the provisions of Idaho Code Section 74-206(1)(j) To consider labor contract matters authorized under Idaho Code Section 74-206(1)(a) and (b). At the conclusion of the Executive Session, the Council will not reconvene into regular Work Session. Roll call as follows: Aye – Councilmembers Radford, Ehardt, Hally, Smith, Marohn. Nay – none. Motion carried. The City Council of the City of Idaho Falls met in Special Council Meeting (Executive Session), Monday, April 24, 2017, in the City Annex Conference Room in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 5:42 p.m. 6  April 24, 2017 There were present: Councilmember Thomas Hally Councilmember Ed Marohn Councilmember John B. Radford Councilmember Barbara Ehardt Councilmember David M. Smith Also present: Dave Hanneman, Fire Chief Pamela Alexander, Municipal Services Director Ryan Tew, Human Resources Director Randy Fife, City Attorney The Executive Session has been called pursuant to the provisions of Idaho Code Section 74-206(1)(j) To consider labor contract matters authorized under Idaho Code Section 74-206(1)(a) and (b). There being no further business, the meeting adjourned at 6:07 p.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 7