City Council

1 CITY OF POCATELLO, IDAHO CITY COUNCIL STUDY SESSION AUGUST 14, 2014 AGENDA ITEM NO. 1: Mayor Brian Blad called the City Council Study Session to order ROLL CALL at 9:04 a.m. Council members present were Steve Brown, Craig Cooper, Jim Johnston, Gary Moore, Eva Johnson Nye and Michael L. Orr. AGENDA ITEM NO. 2: Dave Martinez, Chair Person; and Eric Suess, Library Director LIBRARY BOARD /Staff Liaison; from the Library Board were present to UPDATE discuss the Board’s goals and projects, as well as Council’s policies and expectations. Mr. Martinez explained the Board is looking forward to the installation of a new HVAC system at the Marshall Public Library building. He reviewed the successful ebook program available at the library for patrons to use. Mr. Martinez mentioned the Board has experienced a high turnover of members. However, the new members are learning everything quickly. In response to questions from Council, Mr. Martinez feels the greatest contributions the Library provides to the area’s youth are creative outreach and individual programs. He noted that Library staff excels at engaging youth in these areas. Mr. Martinez mentioned that graphic novels have been added to the collection and young people are reading more as a result. In response to questions from Council, Mr. Suess reported the Library’s bookmobile has not been sold. However, there are still a few libraries interested in purchasing the bookmobile. Mayor Blad and the Council thanked the Library Board for their enthusiasm and helping increase patronage at the library. AGENDA ITEM NO. 3: Kim Bristow, Benefits Coordinator, was present to update the AFFORDABLE CARE Council regarding the implementation of the shared ACT UPDATE responsibility provision of the Affordable Care Act and to discuss changes to the City employee classifications. Ms. Bristow gave an overview of the Shared Responsibility Provision Section 4980H that is applicable to large employers. She explained the cost for employees’ portion of medical insurance cannot exceed 9.5 percent of employee W-2 wages. Ms. Bristow noted staff is seeking Council direction in order to designate full-time, half-time, part-time, and seasonal classifications. She reviewed the process to determine what classification an employee falls into and the percentage needed in order for medical coverage to be affordable. It was noted that a 30 hour per week employee is recognized by the City as a half-time position. The percentage they must pay for medical insurance is 15.6 percent which does not meet the Affordable Plan criteria. Penalties for not providing affordable health insurance were reviewed and also the number of City employees that meets the half-time criteria. The Affordable Plan criteria is based on the number of hours worked regardless of the City’s method to determine the employee classification. CITY COUNCIL STUDY SESSION 2 AUGUST 14, 2014 Ms. Bristow reviewed the proposed method to determine employee classification status. She explained the standard measurement that Human Resources staff has selected is 12 months for a “lookback period” in order to establish the classification for “ongoing” employees. If an employee is determined to be full-time during this standard measurement period, they must be offered medical coverage for the subsequent stability period. The classification of “new” employee criteria was also reviewed to determine the correct medical coverage in accordance with Affordable Care Act. Discussion followed regarding City policy regarding the classification of seasonal and variable employees in relation to medical coverage and to give direction to Human Resources staff of how to classify positions. David Swindell, Chief Financial Officer/Treasurer, gave a review of the cost for full-time and half- time employees. He explained half-time employees do not make as much income as full-time employees. However, the City requires them to pay 50 percent of the cost of medical insurance premiums. Mr. Swindell reviewed premium costs for the City in order to meet the 9.5 percent requirement. Council discussion continued regarding special circumstances when one employee is working in multiple City departments. The total hours worked must be taken into consideration and not separated by department. It was noted that staff is developing a method to track employee hours that cross from department to department. It was suggested that Pocatello Regional Transit staff receive more training on alternate routes to increase staff hours within their department. In response to questions from Council, Lance Colbet, an area insurance agent, suggested the Council consider two medical plans for employees. He feels one plan could be a “skinny medical plan” that would meet the 9.5 percentage requirement in addition to the regular medical coverage plan. Mr. Colbet feels this would satisfy the federal requirements and gave a brief description of what this type of insurance would cover. It was the consensus of the Council to incorporate the four employee classifications as recommended by Human Recourses staff. AGENDA ITEM NO. 4: David Swindell, Chief Financial Officer/Treasurer; and Joyce FISCAL YEAR 2015 Strochein, Finance Manager; were present to discuss the Fiscal PROPOSED BUDGET Year 2015 proposed budget, public comments from the public hearing held August 7, 2014; and to receive final guidance for preparation of the Fiscal Year 2015 Budget Ordinance. Mr. Swindell mentioned that he agreed with the concept of having an additional health care plan with less coverage to meet the Affordable Care medical coverage requirements as outlined in Agenda Item No. 3. Mr. Swindell reviewed the public hearing held August 4, 2014 to discuss the Fiscal Year 2015 Budget. He mentioned that comments made by citizens regarding the budget were appreciated. Mr. Swindell explained staff is looking to see if Council is considering any changes to the proposed budget at this time. In response to questions from Council, Mr. Swindell stated the City looked at privatizing street maintenance approximately 10 years ago. It was found that services provided through the private sector are usually more expensive because they need a profit margin and he does not recall that CITY COUNCIL STUDY SESSION 3 AUGUST 14, 2014 street maintenance in Pocatello has ever been made private. Mr. Swindell added that street/traffic striping is currently contracted out to the private sector and this service has proven to be cost effective. Tom Kirkland, Interim Street Operations Superintendent, clarified that antiquated equipment caused problems with traffic striping and it was more cost effective to contract this out than purchase new equipment and maintain it. Deirdre Castillo, City Engineer reviewed services provided by Engineering Department staff. She explained City staff works on the simpler projects and reviews documents submitted by contractors for finalization of special projects. Ms. Castillo noted that Engineering staff is very familiar with the City’s infrastructure. Mr. Johnston mentioned that some citizens have told him they feel the City should stand up against the Federal Government and not pay $20 Million to update the Water Pollution Control Plant. Mayor Blad explained there have been a few cities in Idaho that stood up to the Federal Government regarding similar mandates. They were fined $35,000.00 per day and it became very costly. In the end, they paid the fine and still needed to move forward with the upgrades. Jon Herrick, Water Pollution Control (WPC) Superintendent, clarified the upgrades are necessary to be in compliance with the Clean Water Act. He noted a city in northern Idaho accumulated fines that were later forgiven. However, they still had to perform upgrades to their WPC plant. Ms. Nye feels the upgrades show the City is being a good steward of its water. It was the Council’s consensus to move forward with the Fiscal Year 2015 Budget as presented. Council discussion followed outlining the need to consider alternative solutions earlier in the process of creating a budget for Fiscal Year 2016. It was noted that Council may need to choose high priority items and make changes in City services. In response to questions from Council, Mr. Swindell reviewed tax exempt properties in the City and agreed these properties contribute to the lack of revenue. He reminded the Council of a recent court case that greatly reduced anticipated revenue and the City is still figuring out how to fund the services it provides to the citizens. AGENDA ITEM NO. 5: Merril Quayle, Development Engineer; Dean Tranmer, City GREENFIELD MEADOWS Attorney; Justin Armstrong, Water Superintendent; and Ryan SUBDIVISION-SATTERFIELD Satterfield, representing Pocatello Creek Development; were WELL UPDATE present to provide background information regarding a well located in the Satterfield area. Staff is seeking direction from the Council in order to prepare a Real Covenant and Annexation Agreement between the City and Pocatello Creek Development Company, owner, and Satterfield Realty and Development, Inc., Developer, which will delineate the terms and conditions of payment for water acquisition by the Developer pursuant to Resolution No. 2006-02 for land recently annexed by the City under Ordinance No. 2935. CITY COUNCIL STUDY SESSION 4 AUGUST 14, 2014 Mr. Quayle reviewed documentation regarding the well acquired by the City in 1973 from Pocatello Creek Development. He noted staff has discussed the well issue with Mr. Satterfield and provided the results of their findings. Mr. Tranmer explained there have been a number of meetings regarding this issue. He gave a brief overview leading up to Council passing Resolution No. 2006-02 amending requests for annexation and zoning. Mr. Tranmer noted that concerns regarding water flow and pending court cases in connection with the eastern state aquifer and water rights on the Snake River and/or its tributaries were happening at that time. Mr. Moore was excused from the Study Session at 11:07 a.m. Mr. Tranmer continued to describe the reason for creation of Resolution No. 2006-02. If the developer could not provide “wet water” then they would need to provide cash necessary for the City to purchase/provide water for the annexed area. Mr. Tranmer reviewed the discussion made during the first two phases of the subdivision. He explained the City’s records retention schedule allows the destruction of some records. Mr. Tranmer mentioned that water law at that time specified that farm use would be more important than residential use. He noted that the well in question has levels of arsenic and needs to have filtering in order to utilize the water. In response to questions from Council, Mr. Armstrong explained until just recently the well has not been utilized. He was told when the well was used at Highland Golf Course in the 1980’s complaints were received from golfers regarding odors coming from the water. Mr. Armstrong reported staff tested the water in the fall of 2013 to determine if the well could be brought back on- line to serve the area. The well was found to have elevated levels of nitrates and would require additional monitoring. He mentioned that the well also contains arsenic and to simply turn the use into culinary water would require further treatment. Staff did not find any issues with odor so the water may be a good candidate to help with irrigation. Discussion regarding water rights and water quality of the well continued. Mr. Satterfield reviewed documents in his possession that noted the City’s acquisition of a well on property located on Lot 10, Block 5, East Bench Subdivision. He mentioned in 1960 the City also approached Pocatello Creek Development Company regarding the well. Mr. Satterfield noted his records include documents estimating the value of the well and piping at $76,000.00 in 1956 and feels the well would have a much greater value in 1972. He suggested a partial payment/donation could have taken place for the City to acquire the well. Never the less, Mr. Satterfield feels the condition of the well is not an issue, only providing the water right(s) to the City. Discussion regarding mandates, water rights and usage followed. It was mentioned that staff does not have the authority under Resolution No. 2006-02 to grant a credit for residential lots or deny any action. Staff is looking for direction from the Council of how to move forward to prepare an annexation agreement. In response to questions from Council, Mr. Tranmer explained Resolution No. 2006-02 does not provide for credits. The formula appears to be adequate, but may need to be modified and Council may wish to consider an exception in this case. The option for a credit would make this process easier. CITY COUNCIL STUDY SESSION 5 AUGUST 14, 2014 Mr. Satterfield would like Council to consider a credit of 811 lots based upon the formula outlined in Resolution No. 2006-02. In response to questions from Council, Mr. Quayle explained the amount being asked is approximately one-half of the entire development. It was the consensus of the Council for staff to move forward with preparing an annexation agreement crediting 811 lots for wet water as discussed and to research making possible changes to Resolution No. 2006-02. AGENDA ITEM ON. 6: At 12:10 p.m. Mayor Blad and council members Brown, Cooper, WORKING LUNCH Johnston, Nye, and Orr left the Council Chambers and participated in a working lunch in the Paradice Conference Room. Discussion centered on operation expenses for City departments, transition of staffing positions and general City topics. No formal action was taken. Mayor Blad adjourned the meeting at 1:25 p.m. APPROVED: BRIAN C. BLAD, MAYOR ATTEST: RUTH E. WHITWORTH, CMC, CITY CLERK