City Council

CITY OF POCATELLO, IDAHO CITY COUNCIL STUDY SESSION FEBRUARY 12, 2015 AGENDA ITEM NO. 1: Mayor Brian Blad called the City Council Study Session to order ROLL CALL at 9:00 a.m. Council members present were Steve Brown, Craig Cooper, Jim Johnston, Gary Moore, and Michael L. Orr. Council member Eva Johnson Nye arrived at 9:04 a.m. AGENDA ITEM NO. 2: Barbara Stone, Animal Shelter Advisory Board Chair Person, ANIMAL SHELTER and Mary Remer, Animal Services Director, were present to ADVISORY BOARD discuss the Board’s goals and projects, as well as Council’s UPDATE policies and expectations. Ms. Remer gave an update on the new animal shelter facility. She noted that construction of the new facility was made possible through a $2.8 million bond approved by tax payers and $225,000.00 donated by Friends of the Animal Shelter. Ms. Remer also acknowledged the expertise of Meyers and Anderson Architects and mentioned Construction Services, Inc. did a great job of organizing the process. She explained how the facility will provide the tools to make staff’s job more efficient and meet citizen’s needs when adopting a pet. Mrs. Nye arrived at this time. Ms. Remer feels the safety and health of dogs and cats is a major accomplishment. She mentioned two educational tours have already taken place and there was plenty of room to accommodate attendees in the new facility. Ms. Stone mentioned the Board would like to expand the education portion at the shelter. They would like to host programs such as teaching students about neutering and spaying of pets. Ms. Stone noted area veterinarians have shown an interest to use the education room for trainings. She reviewed the promotional challenges and grants awarded for shelter operation expenses. AGENDA ITEM NO. 3: Dwayne Sudweeks, Airport Commission Chair Person, and AIRPORT COMMISSION David Allen, Airport Manager, were present to discuss the UPDATE Commission’s goals and projects, as well as Council’s policies expectations. Mr. Sudweeks reviewed the Commission’s activities regarding the airport. He noted a very successful Skyfest was held in July 2014 with 7,000 attendees through the gate and 1,000 spectators from the road. Mr. Sudweeks reported passenger boardings at the airport were up 5% over 2013. He noted part of the land is being considered for a solar farm to generate solar electricity. Mr. Sudweeks noted installation of the new passenger boarding bridge was progressing well and the Commission feels T-O Engineers has provided excellent consulting services for the projects. In response to a question from Mr. Johnston, Mr. Allen explained examples of other solar farms adjacent to airports would include Fresno, California and two from Arizona. He noted a glare analysis that will need to be done in order to meet FAA standards. AGENDA ITEM NO. 4: David Allen, Airport Manager, and Dwayne Sudweeks, Airport POCATELLO AIR SERVICE Commission Chair Person, were present to give an update on PROMOTION the current air service situation at Pocatello Regional Airport and proposed options for increasing service.  2 CITY COUNCIL STUDY SESSION FEBRAURY 12, 2015 Mr. Allen reviewed the current jet air service at the airport. He noted the service is down to 2 flights a day and he would like to increase it back to 3 flights. Mr. Allen explained 2 flights provide 150 seats whereas the older planes only had 90. As a result, the seat numbers are not high enough to fill 3 planes. Mr. Allen estimates 400 people are flying out of the area each day and his goal is to capture 10% of this. In response to questions from Council, Mr. Allen explained capturing those flying out of other airports will be a 2 phase process. He reminded the Council a Small Community Air Grant was used a couple of years ago to help increase the number of flights at the airport and how the grant was used. The City’s portion of the cost for this endeavor was spread out over 2 years and it was met with increased airfares out of Pocatello. Mr. Allen is seeking direction from the Council regarding a similar program at this time. Mr. Johnston feels it is in the City’s best interest to secure more flights. Convenience for passengers is important and he would like staff to identify the 400 passengers that are using other transportation choices. Mr. Allen suggested asking the business community to connect with others to see why they are using different outlets. He noted that Skywest Airlines is not able to promise they will keep additional flights so no contractual arrangements can be made at this time. Council discussion followed regarding suggestions of a daily flight to Boise and cost comparisons based upon ticket prices and convenience for passengers. It was noted that two flights per day is very restrictive for travelers. In response to a question from Council, Mr. Allen clarified the City’s commitment would be $80,000.00 if the grant was awarded. He is confident this cost would be covered by increased fares. It was the consensus of the Council for staff to move forward with the grant application as presented. AGENDA ITEM NO. 5: John Banks, Parks and Recreation Director, and Stacie Van Kirk, COMMUNITY Community Recreation Center (CRC) Manager, were present to RECREATION CENTER give an update on the Pocatello CRC. UPDATE Mr. Banks gave a brief history of the CRC. He noted the CRC has long and successful history of providing countless recreational opportunities and benefits to City residents and the local community. Mr. Banks feels CRC has and continues to be the City’s “year-round” focal point for building strong families and a strong community. Mr. Banks reviewed 3 categories the CRC serves. These are: 1) Mostly Community Benefit-includes those facilities, programs and services that benefit the community as a whole; 2) Combination /Individual and Community benefit-facilities, programs and services that promote individual physical and mental well-being, and provide recreation skill development for generally beginner to intermediate instruction levels; and 3) Mostly individual benefit-facilities and programs providing specialized services, generally for specific groups and individuals and may have a competitive focus. He reviewed the expenses and revenue level and noted cost recovery is 61% which is a high return in comparison to cities of similar size. Mr. Banks reported after contacting cities of similar size, he found the cities did not have much of a return or the services provided were at a high cost.  3 CITY COUNCIL STUDY SESSION FEBRAURY 12, 2015 In response to questions from Council, Mr. Banks reviewed the number of members and scans for daily admissions. He provided a breakdown according to youth, child, adult and seniors use of the facility. Mr. Banks reported the only future facility need/potential expense would be $100,000.00 for a heat exchanger for the swimming pool. He reminded the Council the CRC is located in an older building. However, the roof was recently replaced and he does not anticipate any other costly upgrades. Mr. Banks assured the Council all pool chemicals that are currently used to treat the pool are safe. In response to questions from Council, Ms. VanKirk explained CRC’s exercise equipment maintenance schedule. She noted 2 treadmills were recently replaced and as long as money remains in the budget, staff will continue to replace equipment. Ms. VanKirk reported new members are signing up every day. Since there are no contracts, members use the facility on a day-to-day basis. She reviewed how the monthly fee is utilized. Individuals may skip a month and not be charged. Large families seem to appreciate the flexibility of not coming for a few months if funds are low and they cannot afford to attend. Mr. Banks mentioned the facility is older, but highly utilized by all age groups in the community. AGENDA ITEM NO. 6: Andrea Fogleman and Bonnie Brazier, representatives from CITY EMPLOYEE BDPA, Inc., and Kim Smith, Human Resources Director, and CLASSIFICATION STUDY Kim Bristow, Human Resource Consultant, were present to give /COMPENSATION a brief update of the City’s employee classification study, PHILOSOPHY UPDATE including a draft of the kinds and levels chart; an overview of the salary survey process; and identifying market employers for comparisons. BDPA will also discuss compensation philosophy. Ms. Smith reported BDPA, Inc. representatives met with Department Heads during the week to discuss the Employee Classification Study and Compensation Philosophy. Ms. Fogleman reviewed the three step project and gave a brief overview of the topics to be discussed which included: 1) Classification System (a) job valuation process, (b) defined valuation factors, and (c) draft No. 1 Kinds and Levels Chart; 2) Compensation Plan (a) salary survey process, and (b) identify market employers; and 3) Pay Philosophy (a) current Pay Structure Analysis and (b) Salary Schedule Design Options. She explained the presentation is not regarding pay amounts but how the pay will be categorized. Ms. Fogleman noted employees completed a job questionnaire and they met with employees to discuss the questionnaires. It was mentioned the FLSA test was applied to all positions and the City is meeting these guidelines. In response to questions from Mr. Orr, Ms. Bristow explained the last Compensation Study of employees was completed in 1999 so the information is somewhat outdated. The City’s current 10 step pay structure was discussed. It was noted that after 5 years of employment the 10 steps are met and an employee’s wage cannot increase except by a Cost of Living Allowance (COLA). There is no incentive for employees to excel after they reach the 5 year mark. It was clarified that employees are eligible for Longevity pay after 5 years. Ms. Fogleman mentioned Department Heads were given the same presentation being outlined and staff offered a couple of suggestions. She did note the current step and grade pay structure for the City of Pocatello is antiquated.  4 CITY COUNCIL STUDY SESSION FEBRAURY 12, 2015 Ms. Brazier explained step 10 is aligned with the market rate. She is concerned City employees may seek an opportunity to leave because they cannot move forward to earn a higher wage. Ms. Brazier noted there is a cost for turnover of employees and reviewed the different systems available to provide wages/benefits for employees. She encouraged the City to use a system that continues to challenge employees to do excellent work. Discussion continued regarding salary structure and design alternatives. It was suggested the City develop a system that is both internally equitable and externally competitive for the purpose of attracting and retaining qualified employees. The following pay structures were discussed: 1) Step and Grade–Longevity Plan; 2) Open Range–Maximum flexibility but huge cultural shift; 3) Combination–some budget restrictions with steps-introduces performance based increases over market; and 4)-Target Range–Budget/funding flexibility without steps–promotes pay for performance. Council discussed the different types of positions within the City, opportunities for employees to promote into management positions and the need to acknowledge excellent performance. It was noted that during BDPA’s meetings with staff, seven department heads were in favor of the Combination philosophy and nine preferred the Target Range philosophy. After continued discussion, it was announced that three Council members preferred the Target Range philosophy and three Council members preferred the Combination philosophy. As a result, the Council would like more information regarding these alternatives. -NEXT STEPS BDPA representatives will compile and analyze salary and pay information from market employers; prepare preliminary salary survey and total compensation results; review results with staff; prepare implementation strategies; and prepare a final report for Council to review that will include administrative guidelines. Mayor Blad called a short recess at 11:12 a.m. Mayor Blad reconvened the meeting at 11:26 a.m. AGENDA ITEM NO. 7: Joyce Stroschein, Chief Financial Officer/Treasurer and Ashley CITY BUDGET Linton, City Accountant, were present to give and update on the UPDATE status of the City’s Major Capital Projects for Fiscal Year 2015. Mrs. Stroschein gave a brief overview of the capital projects to be discussed. The capital projects are: 1) Animal Shelter Building Project; 2) South Valley Road Project; and 3) Transit Facility Project. ANIMAL SHELTER BUILDING PROJECT IN REVIEW – a) Citizens voted in 2012 for a new animal shelter facility and obtained a general obligation bond of $2.8 million; b) site location increased costs to potentially $3,835,000.00; and c) City controlled costs and decreased project to $3,398,590.00.  5 CITY COUNCIL STUDY SESSION FEBRAURY 12, 2015 Ms. Stroschein reviewed the budgetary result of the project and noted it will result in a cash deficit of negative $(91,140.00) for the budget. Ms. Strochein gave some options for helping correct the deficit. SOUTH VALLEY ROAD PROJECT – a) Currently deficit position in Fund 070 has a deficit amount of $442,701.00; b) pending invoices are approximately $56,670.00; and c) option to transfer from Street fund will require a budget amendment. Mrs. Stroschein clarified the purpose of the City’s General Fund and how it can be utilized. She explained using revenue sources within the City’s budget are limited. However, staff has worked construction changes to realize lower costs and anticipate $2 million instead of $3.5 million to complete the project. Mrs. Strochein feels the best option to correct the deficit is an internal loan from the Sanitation Department that will be paid back over an 8 year period. The repayment could be longer if this is what Council would like to do. The first loan payment will not be due until 2016. TRANSIT FACILITY CAPITAL PROJECT AND OPERATIONS REVIEW- a) As of September 30, 2014 work in progress on this project is $5,435,995.00; b) cash balance as of September 30, 2014 after receiving receivables and paying payables in October/November for Fiscal Year 2014 expenditures is a deficit of $(1,606,446.00.) Mrs. Stroschein reviewed the match for operations shortfall. She also noted there was confusion in the drawing process for funds and the City may not be eligible to re-submit the draws utilizing the in-kind match. Ms. Strochein did mention there are Fiscal Year 2014 pending grants in the amount of $625,587.00. Discussion followed regarding a summary of the cash deficit for Transit a) Operational match $255,545.00; b) Capital match $710,928.00; pending grant receivables $625,587.00; for an overall deficit of $(966,473.00). Ms. Linton distributed a snapshot of a Transit Department analysis and Mrs. Stroschein reviewed how the analysis is applied. She gave the following suggestions to correct Transit Facility Match shortfall: a) Budget holdback from departments in the General Fund; b) transfer monies from Fund 955 CDR Loan Trust; c) Internal loan with the Water Fund which will require formal resolution and repayment plan; and d) expenditure savings from the Firefighter Retirement Fund rate reduction of 12.24% beginning on January 30, 2015 payroll. ANIMAL SHELTER PROJECT RECOMMENDATIONS – Transfer $51,140.00 from Fund 955 and postpone landscaping of the new facility until the fall of 2015. Council discussion followed regarding landscaping the facility and Mrs. Nye suggested the landscaping take place at this time. In response to questions from Council, Mary Remer, Animal Services Director, reported rain fell this past week and the City’s Building Official noted water pooling near the building may cause issues with the concrete foundation.  6 CITY COUNCIL STUDY SESSION FEBRAURY 12, 2015 Council discussion continued regarding overall construction costs of the animal shelter and proposed Dog Park. It was the consensus of the Council to transfer funds as outlined and postpone landscaping, but to continue looking at other ways to complete the Animal Shelter project. Mrs. Nye was excused from the Council Chambers at 12:18 p.m. SOUTH VALLEY ROAD RECOMMENDATIONS - It was the consensus of the Council to a) transfer from Fund 003 Street Department $499,372.00 to cover current deficit; and b) approve by resolution the internal loan with Sanitation Department in the amount of $2 million to be repaid with a $250,000.00 transfer from Street Department on an annual basis. Staff will give an analysis of 6, 8, and 10 year repayment plans so Council can determine which repayment plan they wish to use. TRANSIT FACILITY AND OPERATIONS RECOMMENDATIONS - Holdback in the General fund of .5% resulting in $161,873.00; Firefighter Retirement Fund rate reduction savings of $385,000.00; Fiscal Year 2015 only redirect $200,000.00 of Electrical Franchise fees to the General Fund; and Internal loan from the Water Fund for $219,600.00 to be approved by resolution and repaid with General Fund transfers the next year. Dave Hunt, Transit Department Director, noted he appreciates the work and guidance with the current situation and reviewed the expenditures for his budget. He explained Transit staff has already started decreasing any expenditure they are able to and are currently in-line to ensure they will not go over budget in Fiscal Year 2015. Mr. Hunt has been told there may still be an opportunity to apply for in-kind match funds to help make his budget whole and not take monies out of the general fund. He will continue to research this and prepare to apply for the grants. Mayor Blad suggested that Council follow Finance Department’s recommendation keeping mind possible funds may be recouped from Mr. Hunt’s application for grants. It was the consensus of the Council to accept the Mayor’s suggestion. Mayor Blad adjourned the meeting at 12:40 p.m. APPROVED: BRIAN C. BLAD, MAYOR ATTEST: RUTH E. WHITWORTH, CMC, CITY CLERK