City Council

December 9, 2019 The City Council of the City of Idaho Falls met in Council Work Session, Monday, December 9, 2019, in the Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 3:30 p.m. Call to Order and Roll Call: There were present: Mayor Rebecca L. Noah Casper Councilmember Thomas Hally Councilmember Jim Francis Councilmember John Radford (departed at 6:00 p.m.) Councilmember Michelle Ziel-Dingman Councilmember Jim Freeman Absent: Councilmember Shelly Smede Also present: Pamela Alexander, Municipal Services Director Mark Hagedorn, Controller Josh Roos, Treasurer Ryan Tew, Human Resources Director Bear Prairie, Idaho Falls Power Director Brad Cramer, Community Development Services Director Duane Nelson, Fire Chief Chris Fredericksen, Public Works Director Joel Tisdale, Police Captain PJ Holm, Parks and Recreation Director Dana Briggs, Economic Development Coordinator Randy Fife, City Attorney Jeff Thomason, Prosecuting Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 3:30 p.m. with the following items: Acceptance and/or Receipt of Minutes: It was moved by Councilmember Dingman, seconded by Councilmember Freeman, to receive recommendations from the Planning and Zoning Commission pursuant to the Local Land Use Planning Act (LLUPA). Roll call as follows: Aye – Councilmembers Freeman, Radford, Francis, Dingman, Hally. Nay – none. Motion carried. Calendars, Announcements and Reports: Mayor Casper stated, per Idaho Falls Regional Airport (IDA) Director Rick Cloutier, United Airlines will be adding a fifth daily departure from Idaho Falls to Denver in June 2020. She also stated United Airlines will be upgrading the aircraft to allow additional seats. She noted Delta Airlines is also considering larger aircraft. December 10, City Holiday party December 12, Association of Idaho Cities (AIC) Fall Academy; and, City Council Meeting December 13, City Club Forum December 17-18, Utah Associated Municipal Power Systems (UAMPS) Meetings December 19, City Council Meeting December 25, City offices closed January 1, City offices closed January 6-7, Idaho Consumer Owned Utilities Association (ICUA) meetings January 9, City Council Meeting 1  December 9, 2019 January 23, City Officials Day January 27, City Council Work Session January 30, Special City Council Meeting Mayor Casper stated she recently attended an Eastern Idaho Mayoral Legislative Forum. She briefly reviewed several agenda items from this forum relevant to the City of Idaho Falls, including fiber, property taxes, Idaho Transportation Department (ITD)/US20 Interchange project, Behavioral Health Crisis Centers, and, the Internet Crimes Against Children Program. Mayor Casper also stated Celebrate Seniors at the Idaho Falls Senior Citizen Center recently occurred. It was then moved by Councilmember Radford, seconded by Councilmember Francis, to add the consideration of a potential item for the December 12, 2019 Council Meeting agenda to the end of the current agenda related to Idaho Falls Power (IFP) participation in the Carbon-Free Power Project, with the good faith reason the information was received after the posting of the current agenda. Roll call as follows: Aye – Councilmembers Hally, Dingman, Radford, Freeman, Francis. Nay – none. Motion carried. Liaison Reports and Council Concerns: Councilmember Hally had no items to report. Councilmember Freeman noted the first snow plow removal has occurred. He stated the Idaho Falls Police Department (IFPD) will be holding a swearing-in for new officers on December 19. Councilmember Francis had no items to report. Councilmember Radford stated he previously distributed a legislative update from the American Public Power Association (APPA) to the Council. Councilmember Dingman stated Targhee Regional Public Transit Authority (TRPTA) has officially filed for bankruptcy. A Request for Proposal (RFP) will be distributed regarding the sale of the buildings property. Councilmember Dingman commended Mayor Casper and Councilmember Francis for their participation at the recent Eastern Idaho Mayoral Legislative Forum. Quarterly Finance Presentation: Director Alexander stated this presentation will cover the previous fiscal year-end budget. Mr. Hagedorn reviewed the following budgetary basis accounting with general discussion throughout: Fiscal Year 2018/19 Budget to Actual Revenue Reporting: Total Revenues and Reserves: 2018/19 Budget = $206,598,558 Year to Date = $178,366,604 Percentage Received = 86.34% Mr. Hagedorn stated cash balance was not spent as more revenue was collected as a whole. Additional tax increase was mainly due to the close-out of the urban renewal district. Intergovernmental work increase was mainly due to grant dollars received at IDA. Charges for Services increase was due to increase of rates and increase of volume. Miscellaneous revenue increase was mainly due to outside contributions. Fiscal Year 2018/19 Budget to Actual Expenditures: 2018/19 Budget = $206,598,558 Year to Date = $169,807,413 Percentage Expended = 82.2% Mr. Hagedorn stated wages/benefits continues to be an area of focus, position control will be worked on in the next budget. Capital Outlay is generally over-budgeted as it is difficult to predict construction project completion dates. Transfers increase includes transfers for self-insurance fund (in place since 2011) and Municipal Equipment Replacement Fund (MERF). 10-Year Historical Actual Revenue to Expenditures: 2  December 9, 2019 Mr. Hagedorn stated revenues were higher than expenditures, this has not occurred in the previous five (5) years. He commended the Directors for this accomplishment. Councilmember Radford reiterated, during the budget process, the City estimates revenues and expenditures very conservatively. He commended the fiscal responsibility. Fiscal Year 2018/19 General Fund Budget to Actual Revenue Reporting: 2018/19 Budget = $46,690,933 Year to Date = $45,681,140 Percentage Expended = 97.84% Mr. Hagedorn stated the increase of Government Charges for Services was mainly due to building permits for development. Intergovernmental Revenue increase was mainly due to Parks and Recreation (P&R) grants. Mr. Hagedorn noted the amount collected was higher than expected, this was due to cash set aside for self-insurance fund transfer. Fiscal Year 2018/19 General Fund Budget to Actual Expenditures: 2018/19 Budget = $46,796,269 Year to Date = $46,152,703 Percentage Expended = 98.6% Mr. Hagedorn stated the largest concern was wages and benefits which was 5% higher than anticipated. Overtime was also a contributing factor. 10-Year Historical General Fund Actual Revenue to Expenditures: Mr. Hagedorn stated expenditures were slightly higher than revenues although the gap is closing. Fiscal Year 2018/19 Departmental Budget to Actual Expenditures: Mr. Hagedorn stated the Police, Fire, and, Airport departments exceeded their budgets, although the Airport was due to grants. ‘Other’ account includes self-insurance, MERF, and, budgetary fund (encumbrance roll-over and contingency). Mr. Roos briefly reviewed Market Review. He stated the two (2) main components used for investment are the Federal Fund Rates (determined by the Federal Reserves Committee), and, the Yield Curve. He noted the market rates dropped three (3) times during the previous year. Mr. Roos also reviewed the Yield Curve. He noted there are three (3) types of curves: normal (treasury rates), flat (little benefit in holding the longer-term securities), and, inverted (opposite rate). Mr. Roos reviewed Investments including the different types of brokers/institutions, bonds, agencies, and, certificates, for the City portfolio. He noted, per the Investment Policy, there should not be more than 50% of portfolio in one (1) type of security. Therefore, several purchases have been moved to Money Market due to the Yield Curve higher rate of return. The Money Market will continue to decrease, investments will then be moved into Treasury and other types of Securities. Mr. Roos stated, also according to the Investment Policy, securities want to be pushed to short-term for better cash flow as no more than 25% of the portfolio would be in the 2-5 year mark, 75% of the portfolio should be in the 0-2 year mark. Investments have been pushed to the shorter-term in the previous year. 31% is currently in the 2-5 year mark with the target range projected at year end. Mr. Roos stated the goal is to have $2M maturing each month. Mr. Roos reviewed the monthly Treasurer’s Report. He stated cash flow has stayed consistent over the previous three (3) years. Banking Relationships: October 2018: four (4) banks with 18 accounts; making less than 0.20% interest on these accounts; no positive pay or ACH protection. Bank of Idaho: five (5) active accounts – all sweep accounts except for payroll; positive pay and ACH protection; earnings credit; Money Market interest 1.55% - $102,922.68 (since April 30, 2019). 3  December 9, 2019 Wells Fargo: four (4) active accounts – all sweep accounts; positive pay and ACH protection; sweep account interest 1.49% - $22,633.72 (since May 31, 2019); Money Market interest 1.52% - $262,712.43 (since March 31, 2019). Mr. Roos stated throughout the year the number of banking institutions has been condensed to two (2) institutions with nine (9) active accounts. This reduction will assist with reconciliation, Money Market, and, Sweep Accounts. Director Alexander commended Mr. Roos, the Investment and Finance Committee, and, the team effort between the Treasurer’s Office and the Controller’s Office. Director Alexander reviewed General Fund Management:  General fund departments should manage within their approved budget and any overages should be communicated to City Council.  Importance of general fund departments bringing 2019/20 budgeted items before City Council by July/August 2020.  Any new unbudgeted project(s) with ongoing costs to the general fund should be prioritized against budgeted projects and analyzed against revenue. Mr. Hagedorn reviewed Area of Focus: Salaries and Wages for the previous eleven years. He stated the number of employees has increased by 75 in the previous eleven years. Salaries have also increased. Benefits have topped out as far as ratio of benefits to salaries. Ratio to benefits in 2009 = 52.05%, ratio to benefits in 2019 = 44.33%. Mr. Hagedorn noted the City is above the average 90% retention rate and, the majority of Separations are retirements of 20-30 year employees The average Separations from 2016-2019 is 15 years. Mr. Hagedorn reviewed Area of Focus: Salaries and Wages for each department over the previous ten (10) years. There is an overall 11% increase. Yearly payroll has increased 39%, the average cost of employee has increased 25% over this timeframe. Mr. Hagedorn stated the cost of payroll is outpacing the revenue. Full-time Employee (FTE) control equates to approximately half of the increase, the other half is wage increase. General discussion followed regarding the number of employees in each department and budgeted positions. Mr. Hagedorn briefly reviewed Area of Focus: Salaries and Wages-Operating Indicators (General Fund). He stated there are additional factors for hiring personnel. Examples could include number of calls for the Public Safety departments and the amount of development. Mr. Hagedorn briefly reviewed Area of Focus: Salaries and Wages-Operating Indicators (Enterprise Fund). He stated discussion will need to occur regarding needs of the City and what the City can afford. Review of Proposed 2019 Personnel Manual Amendments: Director Tew stated Council approval is required for any substantive changes to the personnel manual. He reviewed the following proposed changes with general discussion throughout: Cover Page – addition of approval date for any modification(s). The addition of Veteran status as a protected group and the addition of disability as applicable. Discrimination and Sexual Harassment Policy – complaints must be reported to the Human Resources Director within 72 hours, complaints may also be referred to the City Attorney. Work Week and Determination of Benefits – clarification of commencement and termination of insurance benefits. Overtime and Comp Time – clarification that exempt employees are not qualified for overtime; exempt employees shall take vacation and sick leave in 4-hour or full-day increments; and, flexibility for exempt employees must be approved by their supervisors. Director Tew believes there may be approximately 75 exempt employees although it was noted the actual number of exempt employees is unknown at this time. Military Leave – ‘working’ days has been replaced with ‘consecutive calendar’ days. Special Provisions – Fire Department, Subsection was deleted as agreed to in City/Union negotiations. Longevity Compensation – longevity will no longer be paid in a lump sum every November, longevity will be included in the employee’s hourly rate. 4  December 9, 2019 Reduction in Force – language added to clarify that reduction in force are not to be used to address performance issues. This is to be used as a fiscal tool, not as a disciplinary tool. Those employees would also be given the opportunity to return to work before other candidates are considered. Drug Free Workplace Policy – language added that a violation of the policy may lead to termination. It was noted an employee would be placed on administrative leave pending drug testing violation. Social Media – this is a new policy and will establish guidelines for use of social media accounts on behalf of the City. This does not apply to an employee’s personal social media. Director Tew stated employees are allowed 30 days to review proposed changes to the Personnel Policy Manual prior to Council approval. Mayor Casper stated follow-up discussion may need to occur at the January 27 Council Work Session prior to inclusion on a Council Meeting agenda. Mr. Hagedorn stated several of these proposed changes will assist with the payroll processing. He also stated the software system (Cayenta) could not calculate overtime rate relative to the longevity pay as overtime is required on lump sum payments. He reiterated longevity has historically occurred on an annual basis in November for those employees having reached their third anniversary date any time within the calendar year. He reviewed the current longevity rate tables, stating Police and Fire had a dual longevity payment, part hourly and part lump sum. This has since been converted to hourly for the majority of those employees. Longevity will be applied in the same way for all employees and the hourly rate will now be listed separately on each pay stub. Mr. Hagedorn stated the termination policy allowed longevity to be prorated based on the anniversary date and computed on the last complete month of service. He reviewed examples of the longevity termination. He stated there will no longer be proration beginning in January 2020. Mr. Hagedorn recommended ‘grandfathering’ those employees hired before December 31, 2019 and pay them out as current policy indicates upon termination with the City. Mayor Casper agreed with this recommendation. City total estimated additional longevity payment = $341,600. Idaho Falls Power Participation in the Carbon-Free Power Project (CFPP): Mayor Casper requested the desire to include the CFPP, as a discontinued item due to budget changes or continue with the CFPP, on the December 12, 2019 Council Meeting agenda. Councilmember Francis requested additional discussion at a future IFP Power Board Meeting. Following brief discussion, there was consensus of the Council to continue with the CFPP. E-Scooter/E-Bike Follow-up Discussion: Mayor Casper stated this item was previously discussed at the November 12, 2019 Council Work Session. She noted there were several concerns with the Councilmembers. Councilmember Francis reviewed the following proposed amendments:  9-8-7 A: relating to downtown sidewalks Councilmember Francis believes the E-bikes or E-scooters could be walked on the downtown sidewalks although they should not be ridden. He stated the Council has set direction and encouraged what is to occur in the downtown area, including dining tables and pedestrian traffic on sidewalks. He believes this may be imposing a new business practice. He prefers the designation of downtown comes from Community Development Services (CDS). Councilmember Francis believes the enforcement of no riding on the sidewalk would be easier than enforcing the speed limit. He also believes society would enforce this issue. Councilmember Freeman concurs. He also believes no bicycles (regular bicycles or E-bikes) should be allowed on the sidewalks in the downtown area. Councilmember Hally concurs. Mr. Fife stated bicycles, skateboards, scooters, motorized wheelchairs, segways, etc. are currently allowed on sidewalks. The elimination would require a lot of education and enforcement. Those transportation modes would now be pushed to the street or not allowed. Councilmember Radford believes by not allowing the E-bikes/E- scooters on the sidewalk, there would be no need to have them at all. He also believes there is a desire to get people in the downtown area without vehicles. Councilmember Dingman believes the market is going to control the influence of the E-bikes/E-scooters, particularly due to the cost. She would prefer to ban the scooters versus the concerns of the sidewalks and pedestrians. Councilmember Freeman believes the scooters would discourage individuals from walking in the downtown area. Councilmember Radford prefers this ordinance only apply to the E-scooter corporations as E-bikes currently exist. Director Holm indicated other cities have banned E-scooters on sidewalks although those cities have better multi-modal bike paths and lanes. He believes the City bike paths may need to be 5  December 9, 2019 improved. Director Cramer questioned if the enforcement of the ordinance would be realistic. He also questioned if E-scooters or E-bikes are perceived more dangerous than a regular scooter or regular bicycle. Director Cramer also noted the purpose of a parklet is to get a dining table off the sidewalk and widen that particular area for the use of pedestrians. He believes there is a natural/common sense regulation of reduced/safer speed in congested areas. Captain Tisdale stated public nuisances could be applied to several concerns. He believes the efficiencies are the key to E-scooter enforcement. He also believes calls for E-scooter enforcement will not be a priority call.  9-8-10: Maximum Posted Speed Limits Councilmember Francis believes the miles per hour (mph) should be reduced from 15 mph to 10 mph on all sidewalks. Councilmembers Hally and Dingman concur. Mayor Casper questioned the enforcement of speed. Captain Tisdale confirmed the lower speed would not register on speed equipment. Councilmember Dingman believes the E-scooter app should define the rules and regulations. Director Holm believes individuals will self-govern the speed. Mr. Fife also believes these will be self-regulated similar to bicycles, skateboards, scooters, motorized wheelchairs, segways, etc. He noted 15 mph was included as best practice/common speed limit. Councilmember Freeman believes a speed limit encourages responsibility on the operator. Councilmember Dingman believes enforcement will require communication and awareness.  Additional Recital Points Councilmember Francis believes the Council is trying to establish a mutually beneficial relationship between the shared-ride companies, the City, and, the community. He stated the E-bikes and E-scooters will coincide with the recently passed carbon-free proclamation. Mayor Casper noted there was no director concern with this recital addition.  Other Councilmember Francis believes the E-scooters should have an attachment indicating the rules. Councilmember Freeman believes riding in the downtown streets are not an issue due to the multiple stop signs and one-way streets. Councilmember Dingman stated she would support an ordinance to not allow riding E-scooters in the downtown area. Director Holm stated there could be geofencing with the companies. This could slow down the speed of the E- scooters in the downtown area. Following brief discussion regarding the proposed amendments, Mayor Casper stated this item will be included on the January 27, 2020 Council Work Session agenda. There being no further business, the meeting adjourned at 6:34 p.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 6