City Council

September 21, 2017 MINOT CITY COUNCIL – SCHEDULED MEETING – 6:30 P.M. ROLL CALL Members Present: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky Members Absent: None Mayor Chuck Barney presiding. PLEDGE OF ALLEGIANCE Mayor Barney led the City Council in the Pledge of Allegiance. ICMATV MINOT RESILIENCE PROMOTIONAL VIDEO – APPROVED Alderman Jantzer moved the City Council approve the use of $22,500 of NDR Administration funds to Websedge with IMCA for production of a resilient themed promotional video and authorize the Mayor to sign the agreement. Motion seconded by Alderman Straight. The City Manager explained the request by saying, the City of Minot was offered an opportunity from ICMAtv, a promotional arm to the International City and County Manager’s Association, to feature Minot in a video about resilience. The video would be 5-6 minutes long and would run every hour at their conference in San Antonio and would be available on their website. It would be seen by thousands of people in local government, as well as consultants and engineers. This would afford the opportunity to not only recognize what the City of Minot is doing but also identify additional engagement opportunities for future partners. There is a flat fee of $22,500 and the City would own the rights to all interviews and footage obtained during production. The footage will be edited how we choose and could be re-edited to use for other promotional videos as well. He said, he received clarification from the NDR Program Manager, this project is eligible for funding under the Administrative funds so there would be no cost to the City and it would not compromise any of the other projects. Alderman Wolsky suggested using the information the City has gained during this experience to become a training center for other cities who are working toward the same goals. The City Manager agreed, there is an opportunity there and maintaining a national presence will demonstrate the leadership we’ve shown and the work that has been done. There are other conferences available where staff could show presentations or share papers to elicit interest. Alderman Straight commented, this will be a great opportunity to showcase to other cities currently recovering from hurricanes and earthquakes, a message that times are tough but you can overcome it. Whereupon a vote was taken on the above motion by Alderman Jantzer, seconded by Alderman Straight and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky; nays: none ORDINANCE NO. 5228 – ADOPT THE 2018 ANNUAL BUDGET – SECOND READING – APPROVED Alderman Jantzer moved the City Council place ordinance no. 5228 on second reading to adopt the 2018 Annual Budget. Motion seconded by Alderman Sipma. 1|Page  September 21, 2017 The City Manager stated, he provided a memo outlining the various reductions to the budget that staff was directed to find in an attempt to preserve the pay plan as recommended in the preliminary budget. Alderman Podrygula moved the City Council amend ordinance no. 5228 to include the reductions proposed by the City Manager and the pay plan as initially presented in the preliminary budget. Motion seconded by Alderman Olson. Travis Zablotney came forward in opposition to the amendment. He said, he has spoken with business owners who have told him they have not imposed any raises this year. Most businesses have reduced their pay through attrition and hiring new employees on a lower scale. The economy has been affected because without the higher wages, people aren’t spending as much at local businesses. Property taxes will increase this year even though all citizens are making less money. He asked how the City Manager was able to make additional reductions if there was nothing left to cut and said he did not think it is fair to cut services. Lastly, he said, public perception is that there is a conflict of interest when a Council member is directly affected by an employee’s salary increase. Chief Olson came forward regarding the conflict of interest and stated, he has offered to freeze his salary while his spouse serves on the City Council and it has been included at the City Manager’s discretion. The Council can also choose to vote separately on his wage to eliminate any appearance of a conflict of interest. The Mayor stated, he believes Alderman Olson’s ethics are beyond reproach and her decisions are not influenced by personal gain. Krista Mattice and Aaron Moss, Executive Board Members of the Fraternal Order of Police, spoke in favor of the amendment. They explained a letter they had published in the Minot Daily News. Senior Patrol Officer Moss stated, the comparison to the private sector is not an accurate comparison and it does not paint the picture of the effect on public safety. During boom times in the economy, the private sector may see dramatic compensation increases when public employees do not experience the same increase. In exchange, the public sector expects stability and predictability when it comes to our pay plans. He further explained, there is a greater loss in tax dollars by not funding the pay plan. In the past, Council voted to eliminate the pension plan, chipping away at the benefits for employees. As a result, employee morale is affected and leads to seeking other employment. Minot Police Department has become a training ground where officers hire on, receive training, and then find employment with a municipality that offers a better compensation package. Minot employees pay out of pocket for healthcare whereas the county pays for their employee’s healthcare. Turnover is constant in the Police Department and there are three to four hiring cycles each year. The staff has been stretched thin in order to continuously train new officers meaning there is a lower experience base. He said, he shares concerns about rising taxes, because he is also a Minot resident, but there are greater costs associated when employees are not paid up front. Upon questioning by Alderman Podrygula, Senior Patrol Officer Moss stated, when officers are hired, they undergo a six-week in-house training, attend a 12-week basic law enforcement academy and spend 400 hours in field training. In his opinion, it takes about five years to really get a feel for the job. Chief Olson then explained, currently, 46% of officers have less than five years of experience and the median is six years with the department. Mr. Zablotney asked if the software was the reason the City implemented the pay plan across the entire organization because it doesn’t allow individual changes. The HR Director said, the system has been in place since 1992 and requires manual changes. The City Manager clarified, the software was developed in 2|Page  September 21, 2017 alignment with the pay plan that was approved by Council many years ago. They work together but it is not the case where the staff is making a recommendation based on the limitations of the software. Alderman Olson thanked the City Manager and the Finance Director for their hard work and said she hopes the Council, who voted unanimously to direct staff to look for additional cuts to fund the pay plan, will honor that commitment and vote in favor of the amendment. Alderman Podrygula shared information regarding health insurance premiums and the difference that makes to an employee’s pay. The wages between the City, County, State and MSU are comparable until you factor in health insurance premiums, then the City pays $6,712.32 less per year for an employee with family coverage. Upon questioning by Alderman Sipma, the City Manager said, staff was tasked with finding $424,901 in reductions from the mill levy impacted accounts and $106,721 in non-mill levy impacted accounts. There were approximately 41 line items from across the organization that were reduced in order to meet the request. Alderman Wolsky discussed how President Jantzer’s recommendation is a reduction in the increase in employee pay but not a reduction in pay. He said, he believes citizens need to see a gesture that symbolizes they understand the significant increase they are putting on the taxpayers and are working to minimize that increase without cutting services. Aldermen Sipma and Straight agreed, there are proposed reductions listed which they are not willing to make. From a business standpoint, it is a balancing act and they need to adjust with the economy. Alderman Podrygula stated his final remarks on the subject by saying, the additional $0.40 per week the average property owner will save by reducing the initial pay plan is not worth the effect it will have on employee morale and services. Whereupon a vote was taken on the amendment by Alderman Podrygula, seconded by Alderman Olson and failed by the following roll call vote: ayes: Olson, Podrygula; nays: Barney, Jantzer, Sipma, Straight, Wolsky. Alderman Podrygula moved the City Council amend the motion by proportionately reduce the awards of $1 Million from Community Development funds by $150,000 each and use those dollars to fully fund the pay plan as initially proposed in the preliminary budget. Motion seconded by Alderman Olson. The City Attorney clarified, the ordinance describing the second penny allocation specifies that 30% of the second penny has to go toward Community Facilities. Whereupon a vote was taken on the above motion by Alderman Podrygula, seconded by Alderman Olson and failed by the following roll call vote: ayes: Podrygula; nays: Barney, Jantzer, Olson, Sipma, Straight, Wolsky. Alderman Podrygula gave an explanation as to why he would be voting against the overall budget. He said, the budget is a statement of the City’s priorities and he does not agree with spending $1 Million on the Zoo when we cannot spend half of that amount on employees. Larry Bellew, of 812 Bel Air Place, came forward in opposition to the budget. He said he is retired, on a fixed income and will have a hard time paying an increase to property taxes. He estimated his personal tax increase and spoke about the budget changes between 2009 and 2018. Jeff Hoverson, Melissa Faris, and Travis Zablotney also spoke in opposition to the proposed budget and the increase it would cause to property taxes. 3|Page  September 21, 2017 Whereupon a vote was taken on the original motion by Alderman Jantzer, seconded by Alderman Sipma and carried by the following roll call vote: Barney, Jantzer, Olson, Sipma, Straight, Wolsky; nays: Podrygula Alderman Jantzer moved the City Council pass ordinance no. 5228 on second reading. Motion seconded by Alderman Sipma and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Sipma, Straight, Wolsky; nays: Podrygula. ADJOURNMENT There being no further business, Alderman Sipma moved that the meeting be adjourned. Motion seconded by Alderman Straight and carried unanimously. The meeting was adjourned at 7:57 p.m. ATTEST: APPROVED: _________________________________ Kelly Matalka, City Clerk Chuck Barney, Mayor 4|Page