City Council

CITY OF POCATELLO, IDAHO CITY COUNCIL STUDY SESSION DECEMBER 8, 2016 AGENDA ITEM NO. 1: Council President Steve Brown called the City Council Study ROLL CALL Session to order at 9:01 a.m. Council members present were Heidi Adamson, Jim Johnston, Gary Moore, and Michael L. Orr. Council member Roger Bray arrived at 9:05 a.m. Mayor Brian Blad was excused. AGENDA ITEM NO. 2: Scott Smith, Chairperson, Chad Carr, Vice Chairperson, and POCATELLO Tiffany Olsen, Secretary; from the Pocatello Development DEVELOPMENT Authority (PDA) were present to discuss the Authority’s goals AUTHORITY UPDATE and projects, as well as Council’s policies and expectations. Ms. Olsen gave a brief overview of the history of PDA and reviewed its achievements for 2016. They include: a) paid up to $200,000.00 for power upgrades at the Naval Ordnance Plant to attract new and retain existing businesses; b) acquired the Positron facility located at 1500 Alvin Ricken Drive by judicial foreclosure proceedings in July 2016; c) assigned its lease with JH Kelly, LLC to V.A. Metals, LLC, an Idaho company who is owned by a group of investors from India; d) a loan to BBAD Investments, LLC in the amount of $200,000.00. Repayment was not due until April 2018. However payment in full was received in June 2016. Various other projects and investments were reviewed. Mr. Bray arrived at this time. Tax Increment Financing (TIF) Districts and their current status were reviewed. The districts reviewed were: South Valley Connector; North Yellowstone District, Naval Ordnance District, Airport District, and North Portneuf District. Mr. Bray noted the PDA has provided multiple reports outlining the good happening in these districts. However, he feels the valuations of property have remained flat for the past five years. Mr. Smith explained the PDA Board does not have control over local economic conditions. However, they do have the ability to improve property located within the districts. The improvement increases the value of property and is the incremental increase. The Board focuses mostly on the TIF district. Mr. Smith noted that some of the PDA’s general fund monies have been used outside the district. Mr. Bray encouraged the PDA to consider alternate concepts outside the TIF districts. Mr. Brown mentioned that Bully Dog was a smaller project that benefited from PDA general funds. Mr. Smith noted that the Accelerator Center was purchased with PDA funds. However the potential buyer did not develop. He explained PDA participated in assisting Bully Dog to relocate in the warehouse district in Pocatello. As a result, assistance was provided to The Bridge restaurant allowing them to move into the Yellowstone Hotel. Mr. Smith explained this is an example of a smaller project PDA is able to do. Ms. Olsen mentioned the Bully Dog/The Bridge project kept jobs within the community (The Bridge) and brought additional jobs (Bully Dog) to Pocatello. Mr. Smith noted that PDA’s primary focus is not about jobs only. It is to reduce blight. However, if additional jobs or businesses are the result, they are considered a bonus. CITY COUNCIL STUDY SESSION 2 DECEMBER 8, 2016 Mr. Orr mentioned the Board is very conservative of how they spend and disburse TIF funds. Adequate time is spent doing research before making decisions to move forward with projects. Mr. Moore noted the improvements made in the districts reflect growth across the community. He feels construction of South Valley Road will change the dynamic of the south end of town because of easier access. General discussion followed regarding the Board’s decision process for projects and the steps taken to protect the City from loss. Ideas such as placing multiple centers under one roof that would meet the needs of senior citizens and identifying local housing shortages were shared. Individuals were encouraged to complete an application and bring their ideas forward so the Board can consider them. Mr. Brown described the unique relationship between the City and PDA. He noted they are separate entities, but the administrative work is shared. Mr. Smith mentioned the City’s Planning and Development Services Director usually handles the initial contacts and schedules for the PDA. He encouraged the Council to hire a new Planning Director soon to assist with this important function. Mr. Bray shared that he appreciates the work PDA has done. However, he would like the Board to pay attention to per capita income. Mr. Bray feels income levels have decreased in Bannock County over the last several years. Mr. Carr noted that Bully Dog is an example of bringing better paying jobs to Pocatello. It was noted that businesses must maintain a certain number of jobs at a certain level of pay in order to receive incentives from PDA. AGENDA ITEM NO. 3: Mark Johnson, Account Executive, Executime Software; Chris EXEUTIME SOFTWARE Sorenson, Chief Information Officer; and Hannah Buchannan, PRESENTATION Human Resources Director; were present to review and answer Council’s questions regarding a time/attendance/scheduling product to track employee hours. Staff gave an overview of the current City employee timesheet process. Mr. Sorenson gave a brief overview of the City’s timesheet process and potential benefits to upgrade the system. He noted that costs to implement the Executime Software have increased since the last presentation before the Council. The increase is the result of additional timeclocks being proposed for off-site facilities. In response to a question from Council, Mr. Johnson clarified that his business works with Sungard. He noted that Sungard provides other software for the City and gave an overview of company. The following proposed software includes: a) Time Capture Module which will automatically key employee hours; 2) breakdown of labor hours by job costing and/or project. Administration will create the guidelines and security limits for the software. 3) Advanced Schedule - employee shifts are all scheduled through this portion of the software. Created guidelines are built into the system and are applicable to the timeclock functions. CITY COUNCIL STUDY SESSION 3 DECEMBER 8, 2016 Mr. Johnson gave a quick overview of time clock and scheduling options available. The options will be available through the system. Ms. Stroschein explained instead of staff manually keying the number of labor hours, the hours will be entered automatically. As a result, Payroll Clerks will spend less time keying and more time reviewing employee data. She mentioned there is an audit report that will show any changes done to an entry. In response to a question from Council, Ms. Stroschein feels utilizing software for automatic entry of hours will make things much more accurate. Ms. Buchannan explained hourly employees will clock in and out of the system independently. Timeclocks will be available for employee use at City facilities. She noted that exempt employees will not be required to clock-in unless they are working through a performance improvement plan. Mr. Sorenson reviewed the proposed costs to implement the software and timeclocks. Installation - $97,314.00; annual maintenance $13,094.00; time card machines $29,034.00 reflects 25% for bulk purchase by end of year). Total costs are $139,442.00. Estimated annual return on investment is $351,960.25 based upon payroll process, Human error, and paper reduction. Annual costs and hours to process timesheets were discussed. In response to a question form staff, Ms. Buchannan explained an employee who is out of the office for training can enter their hours through the computer system. A cell phone can be used if it is after hours. General discussion followed. It was noted that new processes will need to be implemented. Small steps will take place as the system is utilized by each department. It most likely will be a 6 to 9 month process before all City departments will be on the system. In response to questions from Council, Mr. Johnson explained one of the issues most employers find is an employee forgetting to clock in or out. If an employee forgets to clock in or out on their scheduled shift, their payroll clerk can make the adjustment. Ms. Buchannan described that she went through a similar implementation process at Idaho State University when they introduced a timeclock system. She explained construction crews used timeclocks and administrative personnel used a computer to log-in. In response to questions from Council, Mr. Sorenson verified funds for implementation of the proposed software were approved by Council in the Fiscal Year 2017 budget. AGENDA ITEM NO. 4: Heather Buchannan, Human Resources Director, gave an PROPOSED CHANGES TO overview of proposed changes to the City’s Personnel Policy PERSONNEL POLICY Handbook. The proposed changed are: 1) new Social Media HANDBOOK Policy; 2) change to the City’s Tobacco Use policy; 3) change to vacation payouts over the established City cap; 4) new Bereavement Leave policy; 5) additional language being added to the Sick Leave policy to help avoid abuse; 6) a change in what time can be donated to those who request; 7) new Organ and Bone Marrow Leave policy; 8) clarification on Travel Funds; and 9) clarifications around promotions, lateral shifts, transfers, demotions and reclassifications. CITY COUNCIL STUDY SESSION 4 DECEMBER 8, 2016 Ms. Buchannan gave an overview of the proposed updates to the employee policy handbook. Some of the updates were written prior to Ms. Buchannan being hired as the Human Resources Director, but have not been formally adopted. They include: 1) Social Media – definition of Social Media, impact to other City Policies; Social networking; department accounts; posting of information; 2) Tobacco Use in City vehicles and City property; 3) Vacation – a) scheduling; and b) limits on vacation (400 hour cap beginning January 1, 2018); 4) Bereavement Leave – a) spouse or declared common law spouse; b) minor child, step-child (under the age of 18); and c) other immediate family members; 5) Sick Leave – a) use of Sick Leave; b) constraints around Sick Leave; c) donation of time for use as Sick Leave; 6) Organ and Bone Marrow Donation Leave – a) bone marrow donor; and b) organ donation; 7) Insurance Benefits – a) termination of benefits for employee due to lack of premium payment; 8) Travel Funds for Official Business – a) allowable travel expenses (per diem for meals); b) direct reimbursement for non-training in the City; c) tax implications (travel less than 50 miles away); 9) Compensation and Salary Administration – a) promotions, lateral shifts, transfers, reclassifications and new employees; b) reevaluation or reorganization of positions; c) overtime and compensatory time; and d) longevity pay; 10) Employee policies and practices – a) hours of employment; b) promotions, lateral shifts and transfers; c) demotions ( voluntary and involuntary). General discussion regarding the proposed changes followed. Ms. Buchannan announced that the 400 hour Cap on Vacation Policy has been removed from the proposed changes. This policy will come before Council for review in 2017. Council discussion regarding bereavement leave and hours/days for employees to utilize the leave took place. It was mentioned the instances of this benefit being used would be very sporadic. General discussion regarding a process to address the abuse of sick leave followed. The proposed changes are in place to give supervisors a tool to monitor possible abuse of sick leave and take steps to correct the abuse if necessary. There are a small percentage of employees who have shown probable abuse of the sick leave system. Discontinue the policy to donate hours for sick leave is also being proposed. Offering short-term disability by the City is something that can be considered in the future. Ms. Buchannan explained the Personnel Policy Handbook has not been reviewed since 2011. She would like to incorporate information she has gleaned while serving in other positions. Department heads and staff have been briefed of the proposed changes. A couple of the proposed changes have been postponed as a result of these meetings. In response to questions from Council, Ms. Buchannan clarified that setting a cap on vacation accruals is an accounts payable issue. It is also a mental health issue. Employees earn vacation time throughout the year and should take time off from work for better physical and mental health. Mr. Bray was excused at 10:55 a.m. In response to questions from Council, Ms. Stroschein explained employee retirement payouts are now included in the department’s Fiscal Year budget and cannot be used for another purpose once placed in the budget for retirement purposes. She agreed that it can be a large expense and also encourages employees to take their vacation as appropriate. This is especially important during their final year of employment at the City. CITY COUNCIL STUDY SESSION 5 DECEMBER 8, 2016 AGENDA ITEM NO. 5: Terri Neu, Assistant Planner; David Gates, Fire Chief and Glen CITY BUSINESS Powell, Fire Inspector; were present to discuss the results from a LICENSE-UPDATE survey sent to a sample of businesses within city limits regarding the creation of a licensing process to operate a business in Pocatello. Ms. Neu gave a brief historical overview of the business license project and results from a survey that was distributed to local business. She noted the survey was mailed to multiple business owners. However, many of the surveys were returned because the address available was inaccurate. Ms. Neu feels the returned letters emphasize that an updated address directory for area businesses is a real need. Ms. Neu gave the following summary of the advantages and disadvantages of implementing a business license system: 1) A City business license offers validation and gives the business owner the documentation necessary to apply for a business bank account and business loans, if necessary; 2) Provide new and existing businesses with a packet that will outline the requirements for the type of occupancy or business to safely operate. This will help the new business understand all code requirements up front, before an expensive investment is made; 3) The City will have an accurate database for potential Economic Development which is good for the citizens and businesses. This database could be available for research and potential business expansion. Provide information from the Small Business Development Center to help the business achieve success; 4) From the perspective of the business’ stakeholder, knowing that the business is licensed, has secured the proper permits and registrations, assures the stakeholder that the business is legitimate and accountable; 5) Equal playing ground (same overhead costs for public safety) for businesses that are already investing in public safety; 6) Up-to-date key holder information will allow faster access from Fire and Police Departments. Contacting business key holders could reduce unnecessary forcible entry knowing the estimated time of arrival of key holder or special instructions for entry; 7) Water Pollution Control (WPC) Department will be more efficient. Permit with EPA requires WPC to know what substances businesses are discharging into the sewer; 8) Out of the ordinary costs to the business owner; and 9) worries of government oversight/regulation. Mr. Gates gave an overview of an actual situation involving a restaurant that would have benefited from having information up front. The restaurant owner did not have the items in place to meet fire code requirements. The individual had already put most of their life savings into the business and fire code guidelines added a very large extra investment. The owners could have been aware of the additional requirements from the initial opening if a business license had been required. In response to questions from Council, Ms. Neu agreed that learning City requirement for operating a business is the owner’s responsibility. However, staff can organize information to help identify the code requirements for businesses. Mr. Gates feels a business license promotes a more even playing field. If you own an auto shop and a special water system is required, the costs will not be the same as someone doing this out of their home. Mr. Gates shared his concern that it can become a health and safety issue. In response to a question from Council, Ms. Neu stated that six (6) cities in the State of Idaho require general business licenses. CITY COUNCIL STUDY SESSION 6 DECEMBER 8, 2016 Mr. Orr mentioned that City staff monitor grease traps, exhaust hoods, etc. in a restaurant. He feels implementation would help safeguard participants of the business. Public safety and environmental staff will take steps as needed to ensure code requirements are met. Mr. Powell agreed the business license requirement will not be able to stop all fly-by-night vendors. He shared his concerns of when a person walks into a restaurant the general public assumes the building is safe. If Fire staff does not know the restaurant is there and an unsafe situation arises, it becomes a health and safety issue. In response to a question from Council, Ms. Neu explained an individual in Planning will coordinate the licenses process. Staff will divide the city up in quadrants and software to implement the process is owned by the City. Costs to move forward should be minimal. However, she noted the first year will be more labor intensive. Ms. Neu reported that Water Pollution Control staff currently drives around town to see if a new business has opened to verify what they are discharging into the City’s sewer system. Ms. Neu announced that 100 business owners responded to the survey and the results are: How long has your business been operating within Pocatello, even if you’ve moved from one location to another? 98 responses -- 45.92% reported they have been in business for 10 or more years. How many employees does your business employ including yourself? 98 responses -- 48.98% reported they have 1 to 5 employees. What is the range of your business’ annual operating budget? 96 responses -- 43.75% showing they have an operating budget of less than $100,000.00. Do you plan on expanding your business? 97 responses -- 54.64% stating they do not plan on expanding at this time; Should non-profit organizations be required to register their organization (business)? 97 responses -- 52.58% agree non-profits should register their business (organization). Are you in support of a business registration ordinance in Pocatello, what annual dollar amount do you feel would be appropriate? 73 responses -- 87.64% felt less than $50.00 should be charged. Would you use/support an on-line payment and renewal system? 91 responses -- 56.04% supported an on-line payment and renewal system. Do you believe business registrations are necessary? 99 responses -- 64.65% did not support the implementation of business licenses. Ann Swanson representing the Small Business Development Center explained one of the advantages of having a business license is the data it provides. She feels one of the hardest parts of helping a new business is having market analysis to show the community’s need. If business licensing is approved by Council the Center could step-in to educate the owner at no cost to the City. In response to questions from Council, Ms. Neu reviewed what staff is already doing to assist businesses and the additional steps needed to implement business licensing. Staff would like to CITY COUNCIL STUDY SESSION 7 DECEMBER 8, 2016 provide a packet of information for individuals applying for a license. The price of the license would help cover this cost. Melanie Gygli, Interim Planning and Development Services Director, feels licensing would be a benefit for a Non-profit to show it was in compliance with City regulations. Grant applications sometimes require this information as part of the process. Next steps – Council instructed staff to research the following: 1) justify the cost of a license and the value added for businesses; 2) Public Relation efforts to educate the public; and 3) draft an ordinance for Council’s review. Council President Brown adjourned the meeting at 11:37 a.m. APPROVED: BRIAN C. BLAD, MAYOR ATTEST AND PREPARED BY: RUTH E. WHITWORTH, CMC, CITY CLERK