City Council

CITY OF POCATELLO, IDAHO SPECIAL CITY COUNCIL MEETING BUDGET RESTRUCTURING NOVEMBER 19, 2015 AGENDA ITEM NO. 1: The City Council Budget Restructuring meeting was called to ROLL CALL order at 9:04 a.m. by Council President Craig Cooper. Council members present were Steve Brown, Gary Moore, Eva Johnson Nye and Michael L. Orr. Mayor Blad arrived at 9:07 a.m. Council member Jim Johnston was excused. CITY DEPARTMENT PRESENTATIONS- It was announced that Department presentations would be given at this time. Presentations will include the following: 1. Employees; 2. Total Budget; 3. Activity or service the department provides; 4. Percentage of city services supported by taxes and percentage that are supported by user fees; 5. Ideas to increase city revenues; and 6. Future needs. FIRE David Gates, Fire Chief, provided information regarding DEPARTMENT the Fire Department. Mr. Gates reviewed the department’s Emergency Response history for 2015 by the type of incident. The incidents were: 2% Hazardous Condition, 1% Service Call, 7% Good Intent, 5% False Alarm, 2% Fires, and 83% EMS and Rescue. Emergency Response standards were discussed and it was mentioned that a one minute call process, one minute turnout and four minute travel is the best scenario for fighting fires. Newly constructed buildings are not designed to resist the spread of fire. As a result, the time to respond has been shortened because the fire has most likely breached a wall and the structure is in jeopardy. It was noted the equipment needed to fight a fire depends on the type of fire: Structure fire - 3 engines, 1 ambulance and a Battalion Chief; Wildland Fire - 3 engines/brush trucks, 1 ambulance and a Battalion Chief. EMS RESPONSE – Mr. Gates explained seconds count in an emergency. He noted that 3 Advance Life Support (ALS) Ambulances are available to respond through all of Bannock County. The cities of Inkom, Lava Hot Springs and Downey have Basic Life Support (BLS) Ambulances staffed by volunteers. In Pocatello, an engine is sent to assist with life threatening and lift assist incidents. TRAINING PREPAREDNESS - Mr. Gates feels training is a vital component to provide emergency services. Staff may need to make a life or death decision and if not completely trained their decision may lead to a fatality. He mentioned a high call volume is interrupting training opportunities. EMERGENCY MITIGATION – Emergency mitigation includes business/facility inspections for child care and alcohol licenses, as well as reported fire code violations. Community outreach programs by the department were reviewed and it was noted that approximately 88,000 people are reached through social media.  2 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING NOVEMBER 19, 2015 Mr. Gates reviewed the following Fire Department employees : a) Administration 7 full-time, 1 part- time, 2 work study; b) Emergency response 75 Line fire fighters; c) Emergency Preparedness 2 full- time; d) Emergency Mitigation 2 full-time; and e) Community Outreach 1 full-time. It was noted that Administration staff provides ambulance billing and collections; patient billing; filing of insurance; collect revenue; HIPAA compliance and submits required reports. Mr. Gates reported the Fire Department’s Fiscal Year 2016 Budget allocation is $7,965,508.00 - 73% property tax, 17.46% other taxes, 9.01% fees and .43% retirement or delayed hiring savings. ALTERNATIVE REVENUE SOURCES – 1) Create an emergency response fee for service; 2) capture uncompensated Medicaid reimbursement; 3) expanded permit fees; and 4) fire flow fees. FUTURE NEEDS/ISSUES – increasing call volume results in call overlap; increasing complexity of calls; training facility need; capital replacement requirements; expansion and fire station placement plan; Chubbuck-Pocatello consolidation. General discussion followed outlining the needs and issues that were listed. In closing, Mr. Gates updated the Council on the Chubbuck/Pocatello Fire Department consolidation proposal. He feels the consolidation will provide for a more robust response capability; improved response coverage; reduced capital requirements; and a more efficient fire station deployment plan. Council discussion regarding different ways to provide fire service followed. Council would like Fire staff to consider other options to help save expenses when responding to service calls that do not send an additional engine. Mayor Blad called a recess at 10:40 a.m. Mayor Blad reconvened the meeting at 10:48 a.m. -POLICE Scott Marchand, Police Chief, and Jim Peterson, Deputy Police DEPARTMENT Chief, provided information regarding the Police Department. Mr. Marchand gave a brief overview of department’s organizational chart. The chart outlined the following Police Staff: 91 full-time sworn officers, 41 full-time civilians, 1 part-time civilian and there is one officer that will be out of service for one year due to an injury. The Fiscal Year 2016 Budget allocation is $14,028,533.00 - 75.13% property tax, 17.95% other taxes and 6.12% program fees. DEPARTMENT CALLS FOR SERVICE-YEAR TO DATE 2015 - Accidents 1383, Disturbances 1,792, Suspicious 2,179, Welfare Checks 2,073 (4 to 6 calls a day and takes 2 officers). It was noted that calls regarding mental health issues can tie up an officer for 7 hours at the hospital.  3 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING NOVEMBER 19, 2015 General discussion regarding mental health issues in the community and the transport process of patients followed. Some individuals do not meet the crisis criteria and there is not a place to take these individuals. Having a local crisis center would be advantageous when police officers are called to help with mental health situations. Council discussion followed to research alternatives to help fund the response to mental health calls. It was mentioned the hospital could be approached to create a process to assist with mental health issues in order to better utilize Police resources. Mental health is not a criminal matter, but it is a Police matter. Police staff must deal with many things that are civil related and this takes a lot of staff time. PATROL DIVISION – Various types of calls the Patrol Division responds to were reviewed. The use of body cameras was discussed. It was noted that the camera purchase is not the only expense incurred if body cameras are used. When officers go into a home there are privacy issues and the expense of redacting portions of videos once a request for records is received needs to be determined. As a result, an employee would probably need to monitor the videos. This could result in a new hire or assigned to another employee. It was mentioned the K-9 Unit and Swat Team also fall under the Patrol Division. INVESTIGATIONS DIVISION - The various types of investigations and staff necessary to process cases were reviewed. It was noted that two detectives work Internet Crimes against Children cases. NARCOTICS UNIT – The expenses for this division have increased because there is a rise in narcotics use in the area. TRUTH VERIFICATION UNIT – This unit conducts truth verification exams for pre- employment and criminal investigations. The cost is minimal because Police staff utilize trained department employees. SUPPORT SERVICES – School Resource Officers (SRO) expense is $664,684.00. A breakdown of officers are as follows: a) 3 SROs are assigned to the three local high schools; b) 2 SROs assigned to four local middle schools; c) 1 SRO at the alternate school; and d) 1 DARE officer who also responds to calls for the local ten elementary schools and the charter school. Code Enforcement and Licensing Enforcement activities were reviewed. DISPATCH/TELECOMMUNICATIONS CENTER AND AIRPORT DETAIL. – Provides 24/7 dispatch services for the Pocatello Police and Fire Departments, and Bannock County wide ambulance service. On duty Patrol Officers cover screenings for outgoing flights at the Pocatello Airport. Currently two flights per day, but has been up to four per day.  4 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING NOVEMBER 19, 2015 Council discussion to combine dispatch centers followed. Mr. Marchand was not supportive of this idea. He preferred a more personalized touch for his officers. He feels the dispatchers know the police officers and can sense when there is something wrong. Mayor Blad felt a combined dispatch center could still have personal touch. He mentioned Police enforcement does not support the idea, but Fire staff is supportive of the concept. As a result, this is still a debatable issue. Mr. Marchand mentioned that he does not feel it is wise to put emergency dispatch personnel in one location at this time. He is concerned with the current terrorism issues. SUPPORT SERVICES DIVISION – This division includes Records, Parking Enforcement, Training and Crime Prevention/Volunteer Coordinator. REVENUE IDEAS – Increase grant research, establish parade/fun run permit fees (there is no cost at this time), create a general business license and establish a fee, request wage reimbursement for School Resource Officers from School District No. 25. FUTURE NEEDS – Radio replacement, additional equipped patrol vehicles, a new building, adequate staffing levels, additional stenographer, and technological advancements. Mayor Blad called a recess at 12:15 p.m. Mayor Blad reconvened the meeting at 1:15 p.m. Council members in attendance were: Brown, Cooper, Moore and Orr. Council member Nye arrived at 1:17 p.m. -UTILITY Cindy Robbins, Director, provided information regarding the BILLING Utility Billing Department. DEPARTMENT Ms. Robbins gave an overview of the Utility Billing Department’s mission. Their mission is – To provide billing and collection services for the Water Department, Water Pollution Control Department and Sanitation Department. To perform the accurate reading of all water meters. To ensure the Customer service needs of the City’s Utility customers are met. Council member Nye arrived at this time. Ms. Robbins explained there are 11 full-time staff members in her department. Meter readers and service worker duties were reviewed. Utility Billing Specialists duties include: manually handling 65% of receipts; accurate billings; customer service; and must balance account activity at the close of each business day. The four cycle desks and their duties were reviewed. Monthly reports are distributed to the City’s Water, Water Pollution Control and Public Works Departments showing consumption total and the top 20 water users.  5 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING NOVEMBER 19, 2015 Ms. Robbins explained her duties include: a) being immediately available for customers wishing to discuss their account and resolve problems, b) approve all adjustment to accounts; answer all service requests; review, work, and determine accounts for collections. CONCERNS – Ms. Robbins reported her department has the highest staff turnover rate internally. She explained Utility Billing staff is at a pay grade 12 compared to pay grade 15 for other administrative support positions. Ms. Robbins also reviewed the billing cycle deadline. If an employee or two are absent, the work must be completed by others in the department in order to meet the billing cycle schedule. Ms. Robbins stated the 2016 Fiscal Year Budget for Utility Billing is $1,153,183.00 and is 100% fees supported. She noted customers are paying their utility bill on time since the new billing process was implemented. As a result, there are less late fees so revenues have decreased. Collection accounts were discussed and it was noted the City’s deposit amount for turning on utility services is less than the average customer’s one month bill. It was suggested adjusting the deposit amount to help cover for unpaid bills. FUTURE NEEDS AND SUGGESTED CHANGES – 1) increase security deposit to cover a three month balance; and 2) retain security deposit on account until finalized. Discussion regarding the appropriate amount of a security deposit and ways to help customers to pay closer attention to their account balance followed. The biggest issue appears to be renters leaving the area without settling their account. Council discussion followed regarding the best practice for collection of utility deposits and the appropriate amount. It was mentioned more research is needed to determine a system that may include a three month estimate for a deposit. -HEALTH BENEFITS Kim Smith, Human Resources Director; and Nicole Harms, Human PRIVATE EXCHANGE Resource Consultant, gave an overview of a Private Exchange PRESENTATION Program for Health Benefits. Ms. Smith gave a brief history regarding the City’s health insurance premium rates. She explained Human Resource staff was asked to investigate a consumer driven health care system. This is what led staff to propose the Private Exchange Program. Ms. Harms explained private exchanges are marketplaces of health insurance and other related products. Employers purchase health insurance through the private exchange. Employees can choose a health plan from the exchange that is supplied by participating providers. Ms. Harms reviewed some of the benefits to having a private exchange. Those benefits are: cost control; one stop shopping; employee customized benefits; employee access; efficiencies in benefits management; employer choice; and research.  6 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING NOVEMBER 19, 2015 Information regarding the “Cadillac Tax” for rich medical benefit plans that is being introduced to the House of Representatives was discussed. Human Resource staff feels there are options to change the way the City’s plan is outlined to avoid a penalty and still take care of employees through benefits. ONE STOP SHOP – All employee benefits would be in one location. This creates a competitive environment. Multiple providers competing for coverage drive down premium costs. Employees and Human Resource Administrators have access to all benefit information by accessing one portal. EMPLOYEE CUSTOMIZED BENEFITS – Choice (multiple plans, employees can choose what is right for them and their dependents); Can choose to supplement their plans with voluntary programs (accident policy, cancer policy, etc.); and Cost savings due to employee customization (projected 3% to 11%, employees will “buy down” to a less expensive plan). In response to questions from Council, Ms. Smith shared that 59% of individuals remain enrolled in a high deductible plan even when a low deductible plan is available. EMPLOYEE ACCESS - Online portal provides access for employees; can look up plan information; process own life events; open enrollment can be done online; and there is an employee help line. EFFICIENCIES IN BENEFITS MANAGEMENT – Human Resource Administrators have access to all benefits information in one location; reduces paper cost and administrative time; and premium payments are consolidated. Joyce Stroschein, Chief Financial Officer/Treasurer mentioned the monthly reconciliation statement of payments to different plans may be a challenge for Finance staff. The amount of impact this will have for the Finance Department still needs to be determined. EMPLOYER CHOICE – Plan design (ability to choose what plans are offered, deciding what to offer employees can reduce employer cost); Control of employer’s share of costs (ability to choose plans that fit with the City’s cost design and even greater if move to defined contribution plan). In response to questions from Council, Ms. Smith gave an overview of the Mercer Company. She explained the City has had a relationship with Mercer for over 10 years and Human Resource staff feels comfortable communicating with them. Staff also feels Mercer will be the best source for the Private Exchange process. However, staff will not have any dollar figures regarding medical benefits to include in the Fiscal Year 2017 budget until March 2016. Ms. Smith mentioned there is already an increase in pharmacy costs and this issue will need to be discussed in more depth. She reviewed the top 11 medical claims over $62,000.00 and noted that four of the claims are for prescription drugs.  7 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING NOVEMBER 19, 2015 General discussion regarding the costs for City retirees’ health benefits, transition costs and the pros and cons of being self-insured followed. Human Resource staff asked if Council would like staff to research the Private Exchange options. A majority of the Council supported more research to be done regarding the Private Exchange concept and asked Human Resource staff to give an update at a future meeting. Council asked staff to make arrangements for a representative from Mercer to give a detailed explanation of the proposed policy at a Study Session. There being no further business, Mayor Blad adjourned the meeting at 3:23 p.m. APPROVED BY: BRIAN C. BLAD, MAYOR ATTEST AND PREPARED BY: RUTH E. WHITWORTH, CITY CLERK