City Council

CITY OF POCATELLO, IDAHO CITY COUNCIL STUDY SESSION NOVEMBER 12, 2015 AGENDA ITEM NO. 1: Mayor Brian Blad called the City Council Study Session to order ROLL CALL at 9:02 a.m. Council members present were Steve Brown, Craig Cooper, Gary Moore, Eva Johnson Nye and Michael L. Orr. Council member Jim Johnston was excused. AGENDA ITEM NO. 2: Sunny Shaw, Executive Director, Pocatello Housing Authority HOUSING AUTHORITY was present to discuss the Authority’s goals and projects, as well UPDATE as Council policies and expectations. Ms. Shaw reviewed the Authority’s 2015 Annual Report. She noted 644 households are using the Voucher Program. Ms. Shaw explained vouchers help supplement rent expenses for qualified individuals. Pocatello Housing Authority continues to maintain high performer status for the programs they offer. Ms. Shaw outlined the new Education program called “book for every child initiative.” She explained every household that comes in for services and has a child will be given an age appropriate book. Giving children the ability to read will help stop the continuation of families staying on the program. The Authority feels this will change poverty outcomes. Ms. Shaw noted there are 508 households on the waiting list which is approximately a three year wait. The Authority has taken over management of a 55 rental unit complex so the HUD monies are not forfeited. Staff is working toward correcting maintenance issues at the complex. Most of the tenants are young families or individuals with disabilities. In response to questions from Council, Ms. Shaw explained the Authority will receive 10% of the rent to provide management of the units they have taken over. Mayor Blad noted the Authority is doing a great job with the programs they manage and encouraged their endeavors to educate children through books to break the cycle of poverty. AGENDA ITEM NO. 3: Brad Hall, Chair Person, Japanese Sister Cities Committee was JAPANESE SISTER present to discuss the Committee’s goals and projects, as well as CITIES COMMITTEE Council’s policies and expectations. UPATE Mr. Hall shared a brief history of Japan being a partner in the Sister Cities Committee. He announced the Committee just had its 30 year anniversary. Mr. Hall gave an overview of Iwamizawa, Japan and the annual youth and adult exchange program. He explained the fundraising efforts youth are involved in to travel to Japan. The program provides cultural and language training for one year prior to the exchange. Council discussion regarding the interaction between delegates from both Sister Cities followed. It was mentioned delegates that visit Yellowstone Park often comment on the impact it has made in their life. Other long lasting benefits of the program were shared. AGENDA ITEM NO. 4: Lonnie Crowell, Interim Executive Director, representing the POCATELLO Pocatello Development Authority (PDA) discussed the DEVELOPMENT Authority’s goals and projects, as well as Council’s policies and AUTHORITY UPDATE expectations. CITY COUNCIL STUDY SESSION 2 NOVEMBER 12, 2015 Mr. Crowell reviewed the Urban Renewal Investment in Pocatello since 2010. PDA Achievements for 2015 include: 1) $342,255 for rail and pavement upgrades at the Naval Ordnance Plant to attract new and retain existing business; 2) pre-funded the demolition of the remaining aged structures at the Alameda Plaza $250,000; 3) Airport TIF funded over $25,000 toward engineering required to meet FAA environmental and other requirements; 4) $3,250 (50%) with Bannock Development Corporation toward Site Readiness Evaluation Program through Idaho Power and Idaho Department of Commerce; 5) negotiation with City for the conveyance of Hoku property; 6) collected through deed of foreclosure property to lease at the Idaho Accelerator Center due to unpaid debt by contract; and 7) supported the Redevelopment Association of Idaho in legislative efforts to save/enhance urban renewal laws for Idaho. General discussion followed regarding Urban Renewal policies being under scrutiny at the State level. Opinion of a Legislative Interim Committee on Urban Renewal was shared with Council. Mr. Crowell would like to make the Urban Renewal process easier. However, the opinion of the Committee has made it more complex. Mr. Brown suggested city councils within the state speak out together regarding urban renewal. He feels if city councils along with their mayor wrote to the legislature it would have an impact on the decisions being made. Council discussion followed regarding submitting written statements to the State Legislature in January so they will have them at the beginning of the session. It was noted that Urban Renewal is one of the few tools used in Idaho for economic development and the importance to allow it to continue. Pocatello has been recognized as implementing the process correctly. North Yellowstone Urban Renewal Area (URA) was reviewed. The Naval Ordnance Plant URA - owner may create a 10 year capital improvement plan. It was mentioned there are very few facilities in the country that have buildings with large cranes such as the ordnance plant. There is a lot of potential for the site. Mr. Orr stated there are approximately 600 to 700 employees in the Naval Ordnance Plant buildings. He feels the plant is a great asset for the community. Pocatello Airport URA - sufficient development is necessary to pay for a rail extension with spurs, a transload station, a substation to substantially increase power capacity, and upgrades to water, sewer and road capacity to meet current industrial and manufacturing demands. There is a lot of interest in rail at the airport. It will be difficult to make the necessary changes. However, if rail can be accomplished it will bring in businesses. Mr. Crowell explained the PDA receives many inquiries regarding the airport. Unfortunately, they become discouraged when informed of the amount of work necessary to make the facility’s infrastructure usable for manufacturing purposes. North Portneuf URA - Hoku Materials facility location. PDA successfully acquired property from the City through conveyance per Idaho Code to market, sell/lease directly to industrial or manufacturing purposes to bring jobs and local investment to Pocatello. Mr. Orr serves on the PDA Board and shared his appreciation for City staff and the assistance they provide to the Board. CITY COUNCIL STUDY SESSION 3 NOVEMBER 12, 2015 AGENDA ITEM NO. 5: Matthew Lewis, Planning Manager; John Banks, Parks and VERIZON WIRELESS Recreation Director; and Kevin Howell, Verizon Wireless TOWER SITE PROPOSAL representative; were present to review a proposal received from FOR ALAMEDA PARK Verizon Wireless requesting permission to design, build and install a Wireless Communication Facility tower site at Alameda Park. Mr. Lewis gave a brief historical overview of the tower application. He explained in January 2015 Planning and Development Services staff received an application from Verizon Wireless requesting permission to design, build and install a Wireless Communications Facility (WCF) tower site at Alameda Park. Staff is seeking direction if Council is interested in further exploring the agreement with Verizon. Mr. Lewis explained if Council would like staff to move forward they have the following options for public hearings: 1) hold two hearings - one before the Planning and Zoning Commission and one before Council; or 2) public hearing before Council only. In response to a question from Council, Mr. Lewis described the proposed location of the tower and small building to house the HVAC system. Staff felt locating the tower in the trees would help integrate it instead of standing alone. Council discussion regarding other properties that might be used for the tower site and concerns from neighbors that the structures will take up space in the park followed. It was noted the HVAC building will attach to the current bathrooms so limited space will be taken. Mr. Lewis reported staff did look at the properties suggested and found there were issues with the sites. It was found there is not enough room for the structures and/or there were issues with easements. In response to questions from Council, Mr. Banks feels locating the structures by the bathrooms is the best option for the Park site. This will assist with trying to blend in with the existing trees to hide the tower. Mitigate as much as possible for less impact to the neighborhood. The noise will be similar to a home air conditioning unit. Placement will be on the opposite wall of the bathroom building to be less noticeable for residents. It was mentioned that new bathrooms for the Park as a result of the tower installation would really benefit the community. Mr. Lewis stated concerns regarding the tower will be part of the presentation Verizon will have at the public hearing. Mr. Howell explained Verizon must look at City owned properties first before going to private property owners. Pocatello City Code requires this step. There was another property being considered before Alameda Park was identified as a possible location. Mr. Lewis explained if Council is not interested in the tower proposal, Verizon will reconsider the El Caporel site it originally chose located at 612 Yellowstone Avenue. The tower site would be in the restaurant’s parking lot near Pershing Street. Council supported the tower placement concept at Alameda Park as an effective way to camouflage the tower and directed staff to hold one public hearing to come before the City Council to discuss the proposal. Council also asked staff to look at ways to enhance the park if the tower proposal moves forward. CITY COUNCIL STUDY SESSION 4 NOVEMBER 12, 2015 AGENDA ITEM NO. 6: Melanie Gygli, Neighborhood and Community Services Division CDBG PROGRAM Manager, discussed potential changes to the requirements of the REQUIREMENT CHANGES City’s Community Development Block Grant (CDBG) funded PROPOSAL programs, in an effort to reduce administrative costs and offer greater assistance for “very low income” households, those below 50 percent of area median income. Mrs. Gygli explained over the last several months and while creating the City’s own “applications” for CDBG funding, staff has developed possible changes to the requirements of some of the City- administered CDBG programs. She noted the proposed changes would benefit their customers and also reduce the amount of program administration required. The proposed changes are: 1. Make homeownership assistance loans (whether down payment and closing costs assistance or lot acquisition cost loans) forgivable over time; 2. Make all individual owners sidewalk projects into grants. (HUD considers sidewalk projects to be a public, not individual, benefit, and can be done only in low- and moderate-income areas); 3. Make all emergency rehab loans (not just water and sewer lines as was done in Program Year 2015) to persons under 50 percent LMI ($28,700 yearly income for a family of four) entirely deferred; 4. Change the way projects administered by the City are funded. Each year, Neighborhood and Community Services staff writes applications for the sidewalk, rehab and infill housing-associated project funds, using the same application process as for subrecipients. Mrs. Gygli feels the proposed changes will ease up some of the City’s administrative work. She gave a review of the process and why the change would save monies so staff time can be utilized elsewhere. General discussion followed regarding the value of homes and the issues individuals are having paying off two loans (home loan and down payment loan). When the individual must move, they may owe more than the home is worth. Additional concerns with ongoing maintenance and the value being decreased because the home was not taken care of were shared. In response to questions from Council, Ms. Gygli stated she will monitor the program changes and watch for problems. AGENDA ITEM NO. 7: Mary Remer, Animal Services Manager; Rich Diehl, Deputy City PROPOSED CHANGES Attorney; and John Banks, Parks and Recreation Director; were TO ANIMAL SERVICES present to review proposed changes to portions of the Municipal ORDINANCE Code pertaining to Animal Services. Ms. Remer explained the proposed changes to the Animal Services Ordinance are mostly administrative/housekeeping updates to portions of the ordinance. Staff shared their concerns with owners walking their dogs on City property, but not cleaning up after them. Ms. Remer explained dogs are restricted from certain areas such as the City Cemetery. Signs are posted on the property that no dogs are allowed. However, Animal Services Officers cannot cite the individual walking the dog. A City Police Officer would need to give the individual a citation. It was noted that mutt mitt dispensers are available for owners to use in areas that dogs are allowed so they can clean up after their dog(s). Mr. Banks mentioned dogs are not allowed on the City’s baseball fields. He explained people are permitted to walk a dog on a leash outside the baseball field area. Mr. Banks noted that Watkins Softball Complex is posted “no dogs” but people are bringing them into the field anyway. CITY COUNCIL STUDY SESSION 5 NOVEMBER 12, 2015 General discussion regarding the proposed changes continued. It was mentioned staff may need to gain access into a locked vehicle to assist an animal in distress. This issue is not addressed in the Code and proposed wording to allow staff or a veterinarian to gain access to keep the animal from potential harm will be added. Ms. Remer reported that citizens have contacted Animal Services regarding their concerns with framed bee hives popping up in neighborhoods. She shared sample requirements from other cities for a permit to keep honeybees. It was mentioned there are approximately 60,000 honeybees in a colony. Staff suggested owners be required to have their name and contact number placed on their hive, a water source and a wall placed between neighbors to disrupt the bee’s flight path. In response to a question from Council, Animal Services staff has received about 12 calls over last year regarding bee hives. Animal Control officers do not have jurisdiction to apply enforcement for these types of calls. Problems arise when individuals set up the hives and then move from the area, leaving the hives behind. Ms. Remer mentioned most complaints received in their office involve yellow jackets and/or wasps. Not honeybees. Mr. Diehl stated having beekeeping in the City’s Code will give expectations for setting up hives and staff direction for enforcement. Mr. Brown mentioned Pocatello is not an urban area. This is a community and individuals need to consider their neighbors when making these types of decisions. It was determined that two ordinances will be prepared for Council consideration. One will include permits for the keeping of honeybees and one without. Mayor Blad called for a recess at 11:02 a.m. Mayor Blad reconvened the meeting at 11:15 a.m. AGENDA ITEM NO. 8: Kirk Bybee, Risk Manager/Chief Civil Deputy; and Lynette WORKER’S Sampson, Deputy Risk Manager; were present to update the COMPENSATION UPDATE Council on the City’s Worker’s Compensation Program. Mr. Bybee discussed the City’s Worker’s Compensation Fund. He explained the focus of the Worker’s Compensation Program is to ensure the safety and well-being of the workforce, to have programs in place to prevent injuries, and transition injured workers back to full duty. Mr. Bybee gave a brief history of the City’s Worker’s Compensation costs. He explained the City became self-insured for Worker’s Compensation in May of 2011 to allow increased oversight and more control over employees returning to work. (The premium in 2010 was $602,884.00.) However, expenses rose as claims for multiple surgeries and their recovery costs were more than the City first anticipated. Mr. Bybee noted if there is a catastrophic loss claim, funding to meet the claim may not be readily available. Mr. Bybee feels the City has been fortunate to have funds to cover claims. He gave a 4 year history from 2011 through 2014 of claims and the amounts spent. Some claims are still outstanding and concerns with the funding being available were shared. Council discussion regarding employee injury medical claims being paid through the Worker’s Compensation fund and not the City’s medical insurance followed. It was mentioned the costs are CITY COUNCIL STUDY SESSION 6 NOVEMBER 12, 2015 higher because the charges from doctors are not paid at the adjusted rate required by medical insurance providers. In response to questions from Council, Mr. Bybee explained the initial concept was to build reserves to cover employee injury claims. A brief history of the State Insurance Fund was given. The funding shortfall was not identified as a problem until spring 2015. The City does not have a pool of other insureds to help provide funding for claims. Mr. Bybee reported the City has received a couple of $200,000.00 claims but no catastrophic claims. The Worker’s Compensation Committee will work toward correcting funding issues for Fiscal Year 2017. The goal is to increase funding in annual increments so the fund will have reserves of $1.5 million within the next 5 years. General discussion regarding the City’s original plan to be self-insured to save costs continued. It was noted that more claims have been received than in the past so the costs actually rose instead of decreasing. It was suggested that funding come from the various City departments instead of a flat predetermined amount. The Committee will work with Finance staff to determine the best process. Mayor Blad asked Legal staff to provide a Worker’s Compensation update during their upcoming Budget Restructuring presentation. In response to questions from Council, Joyce Stroschein, Chief Financial Officer/Treasurer explained each employee has a Worker’s Compensation class assigned by code. The rate to be charged is known after information is received from the State Insurance Fund. She noted the experience rate was not being reconsidered when the City left the State Insurance fund. Over a five year period the rate has not been increased or modified. Ms. Stroschein reviewed what she felt would make the process better and feed the needed reserves. The experience rating must be increased to correct the deficit. Mr. Moore suggested Finance and Legal staff meet with the Committee to determine how to increase funding for the program. He stressed the need to have funds available and to increase the City’s reserve for this use. Mr. Bybee agreed there must be an increment increase to be able to cover large claims. A plan will be developed and staff will come back to Council to share their ideas. It was the general consensus of the Council for Mr. Bybee to give an update during one of the January 2016 Budget Restructuring meetings. AGENDA ITEM NO. 9: Joyce Stroschein, Chief Financial Officer/City Treasurer, TAX LEVY UPDATE presented an update to the Council regarding the City’s Property Tax Levy. Ms. Stroschein reviewed the L-2 Worksheet for the City of Pocatello submitted to the State of Idaho annually. She emphasized page 3 which determines maximum allowable non-exempt property tax to be levied. The sheet is completed with the following information: a) Computation of 3% Budget Increase – provided by the State Tax Commission; b) New construction and annexation budget increase – estimates are provided by the County, numbers become solidified by end of July; c) Foregone Amount – Provided by the State Tax Commission; d) Maximum allowable non-Exempt property tax budget – summation of the report; e) less property tax replacement – provided by the State Tax Commission; f) Maximum allowable non-exempt property tax to be levied – summation CITY COUNCIL STUDY SESSION 7 NOVEMBER 12, 2015 of the report. The tax funds are listed and funds designated in those funds cannot be moved to a different fund (except the general fund). Mrs. Stroschein explained there are levy rate limits within each fund and noted the City’s General fund for Fiscal Year 2016 was over the limit for the levy rate. She was able to correct this by moving amounts into the Street Fund which does not have a limit. Ms. Stroschein proceeded to give a brief history of the funding designations. She noted Fiscal Year 2014 (Tax Year 2013) PILOT funds included in the budget were ordered to be discontinued and execution was made in November 2013. Franchise fee/ROW Maintenance Transfers to General Fund. Reviewed the changes in the Levy Comparisons. In response to questions from Council, Ms. Stroschein gave the following budget ideas to help manage the general fund levy limit: 1) levy for general fund risk management insurance directly for Fund 002; 2) review non-departmental expenses and allocate any expenses related to mail room and central supply to all operating funds; 3) move Zoo Division from the general fund to recreation fund; 4) review and consider moving Legal Division into the Administrative support Transfer. This currently includes Finance, Human Resources and City Hall. Ms. Stroschein reviewed the City’s Tax Levy Rate history and feels the 2006 rate was a false presentation of where the City’s levy rate really was. She explained funds from PILOT transfers were between $4 Million and $3.8 Million per year. Take away the PILOT fee in 2006 and the levy rate would have been very high. **Loss of pilot was a false presentation.** General discussion regarding variables impacting the Levy Rate followed. The following examples were given: if market value increases (Y) – Levy Rate decreases (Z) – assumption no change to amount levied) (Inverse relationship); If Balance to be levied (X) increases – Levy Rate increases (Z) – assumption no change to market value) (Linear relationship) Legislation impacting exemptions – homeowners exemption value, personal property tax exemption value. Ms. Stroschein stated all of these variables will impact the levy rate. Mayor Blad announced the Council would now leave the Council Chambers and enter into a Working Lunch Session at 12:53 p.m. AGENDA ITEM NO. 10: At 12:55 a.m. Mayor Blad and Council members Brown, Cooper, WORKING LUNCH Moore, Nye and Orr left the Council Chambers and participated in a working lunch in the Paradice Conference Room. Discussion centered on Airport development, mail delivery update, economic development and general City topics. No formal action was taken. Mayor Blad adjourned the meeting at 2:55 p.m. APPROVED: BRIAN C. BLAD, MAYOR ATTEST: RUTH E. WHITWORTH, CMC, CITY CLERK CITY COUNCIL STUDY SESSION 8 NOVEMBER 12, 2015