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HomeMy WebLinkAbout2009-07-02 Special1. 0 r MERIDIAN CITY COUNCIL SPECIAL MEETING / WORKSHOP AGENDA Thursday, July 2, 2009 at 8:00 a.m. City Council Chambers 33 East Idaho Avenue, Meridian, Idaho "Although the City of Meridian no longer requires sworn testimony, all presentations before the Mayor and City Council are expected to be truthful and honest to best of the ability of the presenter." Roll -call Attendance: David Zaremba Charlie Rountree Adoption of the Agenda: Brad Hoaglun Keith Bird Mayor Tammy de Weerd Presentations and Discussions of the Proposed City Department Budgets: Meridian City Council Special Meeting / Workshop Agenda — July 2, 2009 Page 1 of 1 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. EIDIAN,--- YonHO / NOTICE OF SPECIAL MEETING MERIDIAN CITY COUNCIL Mayor Tammy de Weerd City Council Members: Keith Bird Brad Hoaglun Charles Rountree David Zaremba NOTICE IS HEREBY GIVEN that the City Council of the City of Meridian will hold a Special Meeting / Workshop in the City Council Chambers at Meridian City Hall, 33 East Broadway Avenue, Meridian, Idaho, on Thursday, July 2nd, 2009 at 8:00 am. The Meridian City Council will be receiving and discussing preliminary budgets and presentations from each specific department of the City of Meridian towards approving a tentative budget. DATED this 10th day of June, 2009. HOLMAN - Meridian City Council Special Meeting — July 2, 2009 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearings, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. 1. 2. KI E IDIAN-- o!AH MERIDIAN CITY COUNCIL SPECIAL MEETING / WORKSHOP AGENDA Thursday, July 2, 2009 at 8:00 a.m. 8:05 a.m. City Council Chambers 33 East Idaho Avenue, Meridian, Idaho "Although the City of Meridian no longer requires sworn testimony, all presentations before the Mayor and City Council are expected to be truthful and honest to best of the ability of the presenter." Roll -call Attendance: X David Zaremba X Charlie Rountree Adoption of the Agenda: X Brad Hoaglun X Keith Bird X Mayor Tammy de Weerd Presentations and Discussions of the Proposed City Department Budgets: Present at Meeting: Todd Lavoie Stacy Kilchenmann Reta Cunningham Jaycee Holman Robert Simison Ron Anderson Shane Lim Anna Canning Eric Jensen Bruce Freckleton Barb Hohler Bill Nary Jeff Lavey Terry Paternoster Caleb Hood Jennifer Lusk Finance Finance Finance Clerks Mayor Fire Public Works Planning Public Works Building Services Finance Legal Police I.T. Planning Finance Meridian City Council Special Meeting / Workshop Agenda — July 2, 2009 Page 1 of 2 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. Sonya Watters Planning Bill Parsons Planning Christy Vigil Planning Matt Ellsworth Planning Thomas Barry Public Works Keith Watts Purchasing Becky Licari Public Works Jacy Jones Finance Pete Friedman Planning Scott Steckline Building Services Emily Kane Legal Ted Baird Legal Mike Tanner IT Keith Danielson IT Crystal Ritchie HR Jennifer Shaw HR David Tiede IT John Overton Police Michelle Albertson HR/Legal Brad Lloyd IT Allison Kaptain Parks Joe Silva Fire Tracy B. Police Scott C. Police Bill Johnson Fire Rick Clinton Water Rich Dees Public Works Kyle Radek Public Works Clint Dolsby Public Works Clint Worthington Public Works Roxanne Holland Public Works Tom Johnson Building Services Warren Stewart Public Works Tom Johnson Building Services Mike Barton Parks Robyn Jack Public Works Tracy WWTP Adjourned at 3:12 p.m. Bird/Rountree Meridian City Council Special Meeting / Workshop Agenda — July 2, 2009 Page 2 of 2 All materials presented at public. meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. Meridian City Council Special Meetina / Workshop July 2, 2009 A special meeting / budget workshop of the Meridian City Council was called to order at 8:00 a.m., Tuesday, July 2, 2009, by Council President Charlie Rountree. Members Present: Mayor Tammy de Weerd, Charlie Rountree, Keith Bird, Brad Hoaglun, and David Zaremba. Item 1: Roll -call Attendance: Roll call. X David Zaremba X Brad Hoaglun X Charlie Rountree X Keith Bird X Mayor Tammy de Weerd De Weerd: I will go ahead and open up the special meeting for our City Council Budget Workshop. If I could find my agenda. Okay. For the public record it is July 2nd, which is a Thursday, and it's 8:00 o'clock. We will start today's meeting with roll call attendance. Item 2: Adoption of the Agenda: Item 3: Presentations and Discussions of the Proposed City Department Budgets: De Weerd: In front of you, Council, you do have a budget hearing presentation schedule, which we will follow as closely as possible and we will go ahead and tum this over to our finance director, CFO. Lavoie: Good morning, Madam Mayor, Council Members. De Weerd: Oh, not you. Lavoie: Oh. I apologize. You're stuck with me all day. De Weerd: Or did you get a promotion that I didn't know about? Kilchenmann: He's housekeeping. Lavoie: Just wanted to start off with letting you know I did give everybody a stack of amended paperwork. I just want to go over that real quick with you. I gave you a new amended summary sheet, which has the General Fund, Development Services Fund, and Enterprise Fund on it. Please just go ahead and amend that to your current budget book, but, please, keep the existing one in there. The new amended one does not have a detailed list of the capital replacements. I tried to save some paper and shrunk that section, so use your old one for capital replacement listings, but the new one has the Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 2 of 91 true actual up to date numbers. The second sheet that you have is just our schedule. You probably have that in hand. The third item in your stack is an updated memo from the Finance Department. You originally received one with your book with items that we changed during the fiscal year 2010 budget preparation. This is an amended item and we added a few more topics to it. I will actually go over this a little bit more in detail after Stacy's presentation. The next two stacks are the Finance Department's presentation copies. The sixth item is a copy of a Boise State University graduate student report. I'll go over that a little bit later in my presentation. This student supplied us a copy of it and I thought it was a pretty good report, so I just wanted to give you a copy of it. And, then, the last item is a list of jokes, just in case it gets a little exciting here, you can take a break and read some jokes and that's just for your entertainment. Kilchenmann: Accounting jokes, of course. Lavoie: Mostly accounting jokes. So, with that said, I will go ahead and hand it over to Stacy. Kilchenmann: I'm going to just briefly go over the revenue and I put in front on your desk this morning the back page of the revenue manual. It starts out the first page is a General Fund revenue summary, so I just want to touch on some of the -- some of the major assumptions, especially in the General Fund, we use to calculate the revenue. First, obviously, is the biggy of property tax. On your second and third page of that handout are some -- some supplementary information about property tax. The first page under the summary, it says City of Meridian property tax history and that's actually taking four residents -- actual residents from different parts of Meridian and looking at their property tax in 2005 though 2009. So, it shows the -- this comes from the Ada County website. It says the changes in valuation of land, property owner exemptions, what they paid in Meridian tax and what they paid for total Ada County tax. So, in 2009 -- of course we are estimating that -- we know the value, because Ada County's come up with that. Of course, we are estimating what the levy rate will be, because we don't know for sure at this time, but in two of the -- two of the properties that you -- if we just keep -- if we do our levy rate as normal, that's run through so the property tax goes down and I think one of them -- it might go up slightly. And, then, I have the second to the last column shows what it would be if we don't do the base increase, so you can see the dollar difference, which isn't very significant. And, then, the second page under that I have already sent you. We won't talk about that, unless you have questions. It was all the boxes with how we calculate our property tax. So, we just -- the Mayor actually asked me to do this with an actual home, because I think it's a little easier to understand. So, we can see what the impact would be of -- without taking the three percent, with taking the three percent. One thing we will never -- if we were to get our property tax levy back to what it was last year, we'd have to cut about three and a half million out of our property tax revenue, which would be a very significant cut for us. And Brad Vanderpool and I were talking -- he works for the Ada County clerk and this -- when property tax -- when taxable values are falling, the levy rate is going to go up, unless you just drastically cut, that's just -- that's just the way it works mathematically. So, I think our levy rate now would be about what it was in 2005 and, then, as taxable Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 3 of 91 values start to go up again, then, our levy rate will start to go down again. So, are there any questions about the property tax, the levy rate? Rountree: Stacy, the -- it's too early to do this in my head, but the percent change, is that year over year or is that from the base year of 2005? Kilchenmann: That's year to year. Okay. The next piece under -- those two property tax calculations or the other significant number for us is the revenue sharing and I calculated -- or I did revenue at -- revenue sharing I put in at 2.6 million. AIC always gives the cities a handout. A couple months ago what they calculate the revenue sharing will be and I imagine they get that from the state and they put us at 3.2 million, but I think it -- they were optimistic last year, I think they overprojected what people would get in revenue sharing, so I used the assumption that consumer spending was not going to improve during the next fiscal year. I think we budget, what, 3.2 million for this year and I think we actually have a good chance of making that. If you look at this - - this one that says state revenue sharing history, that's kind of a history of what our property tax has been each quarter. We only have two quarters in. If you look at the far right column where you calculate the budget, it's 800,000 something every quarter. It doesn't come in smoothly every quarter, it goes up and down. So, the quarter that ends in March is traditionally the lowest quarter. So, that quarter we were like nine percent under -- under budget, which, you know, that would be expected, because that budget calculation, again, is just dividing it by four. So, I think that there is a good chance we will come in really close to that. Maybe a couple hundred thousand dollars under. So, that 2.6 million -- I think the last time we were there was maybe 2005. Franchise fees, that's another fairly large number for us. That's the revenue sharing or the one percent we get from cable, electric, and gas and that one is a little hard to predict, because it depends a lot on what they do with their rates and it depends a lot on what happens with the weather. So, I'm guessing that we will get about 1.4 million this year and I budgeted 1.3 million. So, those are kind of the three biggest pieces of our revenue projections. Rural fire, that number is fluid, because it really depends on what we approve for their operating expenses. So, this is based on their tentative budget, but it can go up and down, depending on what their actual budget is. So, are there any questions on the General Fund revenue projections? Okay. The next one is the Capital Improvement Fund and the Special Services Fund and the only income for the Capital Improvement Fund is interest, which since we don't have any money in the Capital Improvement Fund right now, we are projecting it zero. In the Special Services Fund we -- well, I stayed with it looked like the first six months of this year. So, for residential building permits, that's about 350 building permits for FY10. As of the end of May we are at 274 building permits, that's for the eight months of the year. So, that 350 could be conservative. For commercial building permits I projected about half a million and for the current year we are almost at 400,000 for the first eight months. So, hopefully, those two projections are conservative enough. It's projecting actually less than -- than it looks like we are going to get, in reality, for this year. So, any questions about Capital -- or the Special Services Fund? Now, the final one is the Enterprise Fund and that one's pretty basic. The sale -- bottom sales revenue are just based on the -- what the rate increase -- past history with the rate increase. We haven't really -- we could see -- Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 4 of 91 when the rate increase went into effect you could see the sewer immediately go up. You can't see the change so much in water until we -- now that we are in the summer months. So, we will probably see that when we look at June's income statement. The water and sewer connections, which, of course, are based on buildings, they haven't been increased over what we were estimating the first six months of the year, which was -- was very low. Actually, less than we budgeted. I think we budgeted a little too much for FY09, so we lowered that for FY10. And, then, again, minimal interest income because rates are so low. So, the final thing that I want to talk about, if there is no revenue questions -- I'm sure you have all read your revenue manual in great depth. The other piece of paper I gave you had colors on it and a little on it and a little graph right at the upper left-hand comer. Remember last year at the end of the budget we had -- at the end of the workshop we talked about building up the police and fire Capital Improvement Fund. We called it the Public Safety Capital Improvement Fund. So, what we did -- at that point in time we didn't really arrive on any -- any method that we were going to use, we discussed a couple things, and one of the things we discussed was looking at the end of the year, looking at their savings. So, we looked at FY2008, the closed audited statements, and looked at what they had savings and personnel and operating, which comes out to be -- for both of them combined about 1.5 million dollars. The principal reason for the savings are vacancies, which I think fire had station five vacant positions for part of the year and the police had 12 vacancies. So, I would recommend that for this year that we move 1.5 from our un -reserve General Fund balance into the Public Safety Fund balance and get that fund balance started. And, again, we don't need to use this methodology. We could -- Rountree: Madam Mayor, I believe that's consistent with what we directed last year and I think that's not just a suggestion, that's something we need to do. Kilchenmann: Thank you. Todd's going to go over just some of the accounting changes that we have made during the year, because -- just so you're aware of those, because if -- it would be hard to pick them up just from reading the financial statement. So, he's going to just go over some of those issues. Lavoie: Good morning, Madam Mayor, Council Members. I'm going to go over the Finance Department's presentation. I did give you a copy of that. It's -- I think it's six pages. The first three pages are -- pages are just a little extra from the ordinance that we have in place now that talks about budget policies and just states that the Finance Department, the chief financial officer and the treasurer, our responsibility is to present to you a proposed budget and, then, the City Council has the overall responsibility of passing the ordinance that makes the budget binding. So, the first four slides are just text from the ordinances that state that. Just wanted to remind you that the Finance Department throughout the year works with the department directors and even the Council Members for about eight months to prepare the budget that you have in place and slide number six -- we actually start in January to get this budget moving. The Finance Department prepares a base budget that it delivers to the department directors for review. Then, in the month of February the department directors review the base budget, let me know of any issues at hand and, then, during the month of March, which Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 5 of 91 some of you attended, I have a one-on-one personal meeting to go over every line item in the base budget to determine if we need to make adjustments, higher, lower, remove it, increase it. In the month of March we should have a pretty good idea of what our base budget's going to look like. Also during the month of March the departments submitted their enhancements to the Finance Department, which I believe they worked with the Council Members on, so they would be in the loop of what they are asking for. So, during the month of March we have a good idea of what our -- our first version of the based budget's going to look like with enhancements. Then, in April we continue to work with the departments on their personnel budget side. So, we have already established the operating, then, we work with the department directors to establish their personnel. We combine all of the numbers together and in the month of May the Mayor gets the very first version of our proposed fiscal year 2010 budget, which has been reviewed by the department directors and the Finance Department. In the month of June the Mayor goes through it, let's us know of any changes, we make some changes and that gets us to July 2nd, which is today, which we have the official proposed fiscal year 2010 budget in front of you. Today we will review it, we will make any changes that you request of us and, then, in the months of August and September we will have a few more hearings to make the budget binding via the hearings and ordinance. Any questions on the processes? I gave you a copy of the Boise State University report. We had a student -- a graduate student stop by earlier this year and he asked to interview the Finance Department, because he was writing a report for his grad class on budget works, processes and procedures. What I have up on the screen is just -- it's his conclusion of what he found the City of Meridian's budget process to be. It's a positive conclusion, so we are pretty happy to hear that. De Weerd: Would you have included it in your presentation if it hadn't been? Lavoie: Maybe not. But it's a good one, so I'm including it. It's 18 pages. I gave it to you. It's a good report. He shows some of the things that -- some good analytical tools that we may incorporate into our thinking, but I just wanted to include to show you that a BSU grad student came by and interviewed the Finance Department and wrote a report. It's pretty neat. So, I just wanted to include that for you. Bird: It's from a good school. Where is Nary at? Lavoie: Where is Stacy at? As I said, I gave you a memorandum, an updated memorandum that shows some changes that we have implemented in fiscal year 2010. It has a lot of detail. I'm just going to go over a few of them. One of the bigger changes was City Hall. In fiscal year '09 we decided to put City Hall cost in what we call Other Government, but during the fiscal year this year we determined that that wasn't efficient enough, so we had created its own department, so in the future if anybody asks how much does it cost to run this building in particular, we have one department where we can get you the answer relatively quickly. And in the future years we can give you a good analysis of how much it costs to run this building compared to where we were with the numerous buildings that the city had. After a few summers and winters we should be able to give you a good number, but until, then, we can give you a number, but it Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 6 of 91 might not be as accurate as we think. So, that's a new change. You will see that in your budget books, 1850 is the new City Hall division. Again for fiscal year 2010 we are anticipating to request that we transfer funds from the General Fund to the Development Services Fund to cover some of the revenue shortfall. Fiscal year 2010 we are requesting a 1.5 percent wage adjustment -- salary adjustment. That is implemented in your budget books. It's in the numbers that you have in front of you. So, 1.5 percent was attributed to everybody's salary. Another process that we implemented was currently the Admin Services, the Finance Department, IT, Legal, HR, we decided to include the Mayor's supporting staff in what we call inter -fund transfers. We are requesting that we can move 15 percent of her support staff to the Enterprise Fund in conjunction with the rest of that admin division, so Finance, HR, Legal, IT. A new idea - - new process was Development Services Fund. We are asking that we can fund three personnel from Development Services Fund via general property tax money. That will help relieve some of the shortfall in Development Services Fund for fiscal year 2010, but the burden will be on the General Fund for going forward. And another process -- another new approach was we have three positions in the Enterprise Fund and/or Development Services Fund that are either frozen and unfunded or frozen and funded. So, those are just new concepts and approaches that we took for fiscal year 2010. Definitely ask us questions if you have any concerns about the new concepts. Your staff should be here to answer any of them that you have. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: The Development Services Fund one, is that three new full-time positions or is that positions that already exist in Development Services? Lavoie: Those are three existing positions. Zaremba: And we are just moving where the budget accounts for them? Lavoie: We are going to have the General Fund move money over to help offset those expenses for those three personnel positions. Kilchenmann: I might just clarify. That is a permanent move, a decision was made that no matter if the city dropped into a hole, that we need those three staff, you know, that they are permanent General Fund staff, so that -- that's a permanent funding move. Zaremba: Thank you. De Weerd: It's weird hearing our CFO talk about dropping into a hole. We hope not. Kilchenmann: I meant a literal geographical hole. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 7 of 91 Lavoie: Just wanted to let you know that we did have a few departments this year that are -- will be requesting zero enhancements. You may hear presentations from them. I know a number of them will be still presenting, even though they have zero enhancements. I just want to give you a quick list of the departments that will not have any enhancements and that gets us to the comic side of things. Quick little joke. But -- De Weerd: Now, that is Todd in the middle with his mouth open. That's Stacy. I'm the one in the middle. No. I -- but that gets me to the end of my presentation. I'll stand for any questions that you have regarding any procedures, processes that we do for budget presentation. Rountree: I don't have any. Lavoie: All right. I pass it to Stacy. De Weerd: So, Todd, do you have that cartoon pasted on your -- your workspace? Lavoie: We, actually, used to have all these comics on the finance doors at the old City Hall, but we have not put them up yet. De Weerd: We can put them on the intranet. Lavoie: That would work. Zaremba: We might have to pay license fees to publish them, though. Lavoie: Probably. Kilchenmann: We got them off the internet. Okay. Being one of the departments that doesn't have enhancements, an advantage -- or does have an enhancement and being in the advantage of organizing this whole thing, I get to be first. If you remember in March -- and this will be brief -- but in March we talked about our vision and our mission and our challenges and that we were going to be requesting an accountant and I do want to go ahead and present this to you to get it in front of you and so that you can understand our needs and I think it's a need not something that just happens in accounting, but that happens to all the support staff as the city grows and changes. So, this is our vision that we -- that I had talked about in March and the one I'm highlighting is the need for technical staff to meet our challenges. I just -- this is the enhancement that's actually in your books and I kind of highlighted the key parts of that enhancement and it's when city functions grow and change it also increases the workload for the supporting departments and that -- like Parks and Enterprise have multiple, multiple construction projects. External audit standards have changed dramatically, pressure from the public and the federal government is increasing the need for detailed financial information in like -- for one example is our transparency report. It's much -- when the size of an organization increases, the complexity of the general ledger increases and it's much more -- it's complex to pull financial statements together. Basically, we have Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 8 of 91 three professional staff that are kind of handling all these reporting, auditing, budgeting, investing, training, planning, forecasting, and so forth. Another key -- one of the biggest areas -- areas that takes time are grants. Grants are extremely time consuming. They are good and I think there will be a lot more grant money available in the next few years with the stimulus package going on. I just do want to remind everybody that they do take a lot of accounting time and there is a lot of responsibility to the federal government. So, that kind of just sums up our vision. As city government grows, the need for planning for tight resources, complex accounting structures, regulatory requirements, and increased public awareness. So, I just wanted to pick out -- those are just kind of words, throwing out lingo, so I just want to kind of pick out some examples that are easier to understand. For example, the number of city employees from 2005 has increased 60 percent to the proposed FY 2010 budget and so if you think of just payroll, I just picked out payroll with -- it's more than just handing out checks once a week, there is input of data, changing in IRS regulations -- considerable amount of time is spent reconciling the payroll account and these -- these things involve all our departments, not just the payroll administrator. Internal control officers go from one accounting function to the other each year really scrutinizing it and this year is going to be payroll and we all know about our infamous IRS audit. There is a lot of work managing electronic time sheet and payroll data base itself. The fire payroll alone is complex and time consuming and you got the police step plan. So, it's not -- everybody just gets -- you know, has the same sort of pay. Departments are paid on a completely different basis. There is a download of analysis right now and decision, because, obviously, payroll is one of our major expenses. Benefit reconciliation, the management of the ABRA system with HR. All the vendors we pay that are associated with payroll. And the next nightmare that's coming up are the city having to tax city cell phone users. So, that's just one example. Our budget has -- just our personnel and our base operating budget has grown from 25.6 million in 2000 -- FY05 to 44.8 million proposed in FY 2010. So, obviously, that growth in budget requires more accounting work, it becomes more complex. Fixed assets in 2005 -- from 2005 to now have increased 75 percent to 263 million. And I talked about the -- we have talked -- you have heard me talk on and on about the audit, grants, so I don't see my slide for what we are actually requesting, but we are requesting an accounting position, which I think is 78,000 dollars, which is split with the Enterprise Fund and that was our number one enhancement. Our second enhancement was for a computer for a fourth workstation and we are withdrawing that. Are there any questions? De Weerd: Council, any questions? Bird: I have none, Mayor. Kilchenmann: The finance show is over. De Weerd: You picked it in the morning, so you could lull them to sleep. We are well ahead of schedule. Bird: Let's keep it that way. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 9 of 91 Canning: We are not seeing any -- that's all we are seeing, so we don't have any mechanism to pull anything up, Todd. Lavoie: The FY10 budget? Canning: Yes. Lavoie: Two? Is it two? Canning: All right. That's better. Well, Bruce and I enjoyed doing our presentations together so much last year that we decided to come back and do it again this year. So, this is the presentation for the Development Services, which is the just the Planning and Building Services at this point. I think Economic Development is later. And we just wanted to show you the three different services that are within that fund, the building, the planning and the economic development. And, then, Bruce is -- Freckleton: Okay. This -- this slide gives you a -- this may look a little bit familiar from two weeks ago. I put some slides in that kind of give you a distribution of our Development Services Fund. I redid the numbers based on the 2010 projected -- or not projected, but the 2010 budgeted revenue. That's what this first pie shows, showing -- excuse me -- 89 percent of the revenue for the fund coming out of the Building, six percent coming from Planning, one percent from interest, and four percent coming from the General Fund shortfall funding that was mentioned earlier. Next slide is the expense distribution for that fund. Fifty-one percent Building. Forty-two percent Planning. Seven percent Economic Development. And just historic transfers of capital over the last seven years, a little over 8.2 million. Just wanted to do it on these bullets to go over our approach at the budget from the Building Services side of things. This was -- this was the things that we looked at to -- to establish the budget. Number one was no enhancements requested, either at fiscal year '09 or '10 for the Building Services. Our goal was to not have any increase in FY10. The philosophy is to only ask for what we need and to live within our means, but to do that without any drops in service level. We have got a focus in Public Works to increase training. When we -- when we talk about increasing training in Building Services, what we are looking at is trying to get our staff up to speed with LEED certification, green technologies and low impact development type of approaches. We also are focusing on increase use of technology. You might remember from a couple of weeks ago we talked about our electronic application submittal and review process that we started. We also are starting our E-commerce for -- in the office and over the internet for applicants to be able to pay for their permits with debit and Visa or Mastercard. We also eliminated a vacant position at -- in FY -09 for a permit technician and we are converting one full-time permit technician position to part-time status in FY10. Our contract inspection staff — this is -- you know, with the slow down in building, they were the ones who really shouldered a lot of the -- the impact of that and they have had to down size by six staff members because of that. We've had approximately 865,000 dollar reduction in our budget for FY09, compared to our FY10 budget. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 10 of 91 Canning: Then, on the Planning Department side is very similar. We didn't propose any enhancements this year and we have also trimmed our operating expenses while striving for no drop in our service level. There were a number of staff reductions this year. I eliminated an assistant city planner position and I am -- that was this spring. And, then, this fall come October we will eliminate the design review planner position. In addition to that, I just recently had one of my assistant city planners find another job, so have kind of frozen that position for now. I don't plan on hiring anyone new for that position, so it will be a salary savings for fiscal year '10 and '09. And, then, as Stacy mentioned, we have proposed to move three of the positions from my office, from Development Services, to the General Fund, and the idea there was Stacy asked me if development stopped, you know, who would you still need and the idea is that I would be there to kind of oversee both whatever current planning is going on, whether it's -- because even if development stops you still got people wanting to move into new leased spaces, you still have signs that need to go up, things like that, fences that people need to replace. There is still some amount of activity, even if there is no new development. So, we'd need that position. We would need a receptionist and someone to help with the administrative duties and we'd also need someone to do comp planning, because planning doesn't stop just because growth stops. There is still some of the greatest challenges actually come when there isn't growth and you need to revitalize an area or to keep plans going and keep the city functioning well. So, those were the -- the three -- that's, really, the biggest effect on our budget with the three positions. Freckleton: And on this slide we just wanted to go into a little bit more detail of what the budget reductions -- the areas where they were and how much the reductions were. So, in Building Services we had a personnel base cost reduction of roughly one percent. Operating base budget cost reduction 56 percent. And the Development Services Fund reduction of 46 percent. So, that would be our portion of the reduction for the overall fund. Canning: And for the Planning Department we had a 23 percent reduction in our personnel costs, 16 percent reduction in operating costs, and a lot of that was looked at some of the -- what we had historically been spending on training and try to trim where we could. And then -- so, our overall reduction for the Development Services Fund is 31 percent. And, then, the total fund reduction was 45 percent for the Development Services Fund. I think it's actual along the lines of 1 point -- almost 1.8 million dollars we reduced out of that fund for fiscal year'10. Freckleton: This -- this particular slide -- we wanted to just go into a few of our challenges and opportunities. This is kind of a short list that we compiled. Assisting customers in a down economy, we -- we have worked with -- with Council and reduced -- or did the waiver of the police and fire impact fees. Canning: And, then, we are also -- you will -- on Tuesday you will have a brief introduction to our thoughts about how to increase sign allowances for struggling businesses right now. We've also spent -- both departments have spent a lot of time Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 11 of 91 shepherding start-up businesses through the process. I mean we have been -- hand holding isn't even quite right. It's to the level of service we have been helping somebody that just don't have the resources to get the information that they need in the process, so that we can process it and we also, as you saw the other night, we have come up with an easier process and reduced fee schedules for some of those certificates of zoning compliance where it's more like a -- kind of a tenant improvement. Freckleton: Another area is practically anticipating and guiding growth. Our reimbursement code that incentivizes growth priority areas we feel was a -- was a good approach to take to help stimulate some -- some growth in areas that were strategic. Canning: And for fiscal year '10 in the Planning Department, you know, we spent this year getting all the clean up stuff done and we should have it done by the end of the year and for fiscal year '10 what we really want to do is focus on that comp plan and revamp it and make it a more -- much more useful, smaller, more easily understood document, with the -- also and adding the emphasis on the economic development. We are also working on spending energy block grant funds, which is -- takes a lot of work to actually spend those funds, so same with Community Development Block Grant funds. We have both been working on improved standards and processes for our department. We have been taking -- pulling the sign ordinance to bits and pieces and really kind of trying to redo it in a way that's easier for folks to understand, that's -- that we believe protects us a little bit better, because now we are forced to look at the content of the sign to figure out what kind of sign it is and we are trying to move away from that, so it will be a whole different approach to the sign ordinance and, hopefully, a much more simple one. Freckleton: We have also been working -- working hard on setting up standard operating procedures and developing interactive flow charts that we can provide to our customers in handout form and also on the internet to be able to help them to -- as a better guide to the flow through for development. We have also worked on clarifying our standards -- our standard conditions of approval. We have been working with Anna's staff on trying to standardize some of our conditions of approval, so that we are not having to regenerate them every time and that sort of thing, so -- Canning: Lately we have spent a lot of time on design review, just setting and directing staff up to speed on it and, really, trying to uncover what needs to be fixed. I mean we told you when we adopted it that we would come back to you in six months with a list of fix it items and we are developing that list and they are a few things on there, so we are looking forward to that part, too. Freckleton: One of the external factors that we have -- we have been dealing with on the Building Services -- and I mentioned this a couple weeks ago when I was in front of you, is we have had an increase in enforcement actions because of the down economy and so that's -- that's definitely been a little bit different -- different area that we have had to put a lot more effort into just dealing with different creative ways people have of trying to get around things, so -- Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 12 of 91 Canning: That's the end of our presentation. Do you have any questions? De Weerd: Council, any questions? Bird: None at this time. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: For Bruce. In the breakout for the building department, your replacement budget shows six employees. It indicates on inventory you have 15 computers, you're going to be replacing ten. Help me understand that, so I can explain it to somebody. Freckleton: Okay. The majority of our computers -- and I think there was a little bit focused effort in our previous directors that our building inspectors, our contract building inspectors, they always got the hand-me-downs of the hand-me-downs, so the majority of the machines that are -- that are proposed to be replaced are the oldest of the old machines that we have. They are some of the -- I think Terry's crew is some of the old Micron -- or not Micron -- MPC computers that we continually have lots of problems with, hard for our IT staff to support those machines. I don't know, Terry, do you have anything you want to add? De Weerd: You know, I guess I will also help answer that question in that as we move forward with the E-commerce and doing a lot more electronic and online and most recently we just had a discussion with the department of -- or the division of building safety with the state in looking at being able to utilize an electronic or an online program for plan review and putting those kind of things online. If we are to utilize technology in a degree that -- to start streamlining and make access to the department easier, we do need to have computers that will run these kind of programs that they can do plan review and have those plans on their computers, which will not only help in-house, but also in the field. Rountree: Madam Mayor and Bruce, that -- that explains what I already know. How do I explain to somebody we got six employees and 15 computers? They all have three? Freckleton: Well, six employees are -- are actually city employees and it's actually not six, we actually have four. Once we take that permit tech staff down to part time -- I'm currently split part time -- or half and half between land development, which is Enterprise, and Building Services, which is the Development Services Fund. De Weerd: Councilman Rountree, those are for our building inspectors. We have -- Rountree: Our contract inspectors? Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 13 of 91 Freckleton: Correct. De Weerd: -- our contract inspectors -- we require them to have office time and that's -- that is where they do their reviews and so the computer and the work surface is what we do provide on our side of it. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Follow up with -- off of Charlie's deal. Why is our subcontractors -- why are we -- why are we furnishing computers for them? Why can't they furnish their own computers? De Weerd: And bring them in? Bird: And the subcontract might be different. I mean it might state that we supply them. That's all I'm asking. De Weerd: I believe we supply -- Bird: I know we always have, but why do would have to? They are subcontractors. De Weerd: Well, I guess you could address it through the agreement, but right now that is the -- Bird: The agreement right now says that, Bruce? Freckleton: The contract currently does say that they will supply computers, office space, desks, we buy the -- the stickers, you know, that we use for -- for the inspections. We supply all of the -- the basic office type needs. Bird: And that's just exactly what I was asking, because, you know, it's like Charlie said, you're wanting 15 computers and we got four and a half employees. Freckleton: Right. Bird: That's actual -- that's actual payroll employees. Freckleton: Correct. Yeah. The rest of the staff is the contract staff. Bird: Yeah. Freckleton: And part of the reason I would say that we have to have -- that makes it more convenient for us to be able to supply them is that we have common software Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 14 of 91 platforms, you know, our building permit software is -- that we are currently running is -- we are limping by on it. Bird: Yeah. Freckleton: And to try and do something different, you know, somebody else's system may have software that's -- you know, they might be running Vista or something, where we are running XP and so it's just trying to try keep things on a common platform. Bird: And I don't -- I don't disagree with that, except it's -- like Charlie said, you got four and a half employees and you got 15 new computers. Now, how do you explain that when somebody comes up if they don't know? Okay? Hoaglun: Madam Mayor, a question for Bruce. De Weerd: Yes. Hoaglun: That software, is that licensed software? Do you know if it's licensed to users, which if we have all the computers, then, that's fine to put it on, but if -- if we have the contractor or subcontractor to provide that software, they are going to have to purchase that, if it's licensed software. Freckleton: That's absolutely correct. Yeah. Our software for our building permit issuance is a licensed software. That particular software package, there is no limit to the number of seats or the number of computers it can be installed on, but if someone outside of the city was to install it, they would have to purchase licenses themselves. You're correct. Paternoster: Can I say something here? I think what's important to recognize with these particular computers is that they are on our network and being on our network we have certain minimum standards for computers that are on our network and unless we, you know, want to come up with some sort of financial arrangement with I guess those contractors or inspectors, you know, to reimburse the city, I think that we are going to run ourselves into more challenges than maybe the benefit that we received from that, because we have about 450 dollars worth of licensing that's required for computers to be on our network and there is minimum standards and ultimately what happens is if a computer, whether or not it's paid for by an inspector or paid for by the city, ultimately it's going to fall into the lap of, you know, the technology department to maintain those machines and make sure that they are running and if we don't have some input at least in what machines are on the network, then, it ends up costing us more in labor and staff than, really, what the cost of the machine or the software would be. Rountree: Madam Mayor? De Weerd: We'd love to get an easy way to answer that. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 15 of 91 Rountree: Just the fact that we are providing them for our contract employees was sufficient, but thank you for the extra information. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: This is a technology question, I guess. At some point there was discussion about -- the kind of people that are out in the field, like the code enforcement officers and the inspectors and stuff, getting things in such a way that while they were out in the field they could check things on a computer in their hand and they didn't have to come back to the office to check on conditions from CUPs, check on building permit requirements, am I remembering that correctly and, if so, how is that going? Freckleton: Councilman Zaremba, you're spot on. It's something that we have been looking at for about five years. Something you might remember -- I came before you -- I think it was about four years ago and requested some budget for purchase of an Enterprise software package. At that point in time -- I mean the need was -- is great even today, but at that point in time we didn't figure that we could get it installed and up and running during that budget year and so we backed that number back down and I think you approved 150,000 dollars back then and we have carried that forward and we have -- we have got a committee that has been working on trying to find the right software package. So, you're exactly right, I mean one of the things that we have looked at is we want to make sure that when we select a package that it has the connectivity module so that we have the ability for our field team to be able to pull up information and enter information from the field and have -- excuse me -- have it be able to send information directly to the contractor, you know, as soon as that inspection is complete, the contractor is getting an e-mail or a text message or a fax or however we want to set it up to increase that efficiency. So, you're exactly right. And we are still headed that direction. Zaremba: Okay. Thank you. Paternoster: Well, we actually have come to the point that we have a recommendation or working on the report at this point and so we are actually really really close and we have identified the package that we think really would best suit the city's needs. I think one of the things that -- about what Bruce is saying and what you're talking about is you're talking about mobile workers and one of the things that's required, really, at this point, due to the software that we own, which is the Blackberry PT Winn, is that it would require -- we could allow employees out in the field to remote back in using an air card system with a laptop and, then, remote back into the desktop PC, but at that point they still would need a desktop PC that they would come back into to access the software, because it doesn't actually have a web -type interface that they can get to without having a second computer that's kind of serving that intermediary purpose. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 16 of 91 De Weerd: Just a reminder, when you're writing that report it's not just a piece, we are looking at the system as a whole and the phasing. So, we have -- Paternoster: We have a phase recommendation. De Weerd: -- all of the cost, not just one piece. Paternoster: Yeah. Absolutely. And I believe that's how the report's been written. Zaremba: Well -- and -- Madam Mayor? I -- you know, I'm always the one that wants to raise the cost of not doing something. In that report I would identify the efficiencies and what it saves us -- I mean the ability of inspectors to -- or all of the field people to work out in the field and access information -- you said if they are able to sign off on something, let the contractor know right away, but also if they find something that needs to be fixed or changed, you know. If they have to go back and forth to the office, we lose a lot of time time and efficiency and so do the contractors. So, I -- in the report I would include whatever efficiencies that's offsetting. Paternoster: Will do. De Weerd: Okay. Any other questions? No? Why don't we take a break and -- Rountree: Madam Mayor? De Weerd: Yes. Rountree: We are a half an hour ahead of schedule and I see that the city of Boise prosecution staff is here. Bird: Let's go. Rountree: Why don't we just give them a break, so they don't have to stand around for an extra half an hour or an hour. Bird: You allow them 30 minutes and, then, that will take us right to the break. Rountree: That gets us right to the break. De Weerd: Okay. Well, we will break for at least five minutes to get them going and set up. It is my prerogative. I don't need a motion. (Recess.) De Weerd: Okay. I'll go ahead and reconvene our budget workshops. We have the city of Boise here and -- to do their presentation. Hello. Thank you for joining us. And I guess we have our esteemed city attorney to kick this off. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 17 of 91 Nary: Thank you. I'm sure you meant that in the best possible way. Thank you, Madam Mayor. De Weerd: Absolutely. Nary: Madam Mayor, Members of the Council, thank you for the opportunity to present our budget presentation and a little bit of the things we have been doing, some of the things we are going to be requesting. I have -- some of my staff is here today. We are very fortunate to be here. We are all very glad to have the opportunity to work for the city and to represent the city daily for the things that we do. We think we all do a great job in representing the city to the citizens and we appreciate this opportunity today. Here is all of our current staff. That picture is representative. We do have two current vacancies, but the staff from our -- from our attorney staff, as well as our human resources and IT and we truly do work as a cooperative team. I mean there is very little lines drawn in our department. We really do try to make sure the work gets done and we don't really wont' about who -- De Weerd: So, Bill, are those kings just the different faces of Bill Nary? Nary: No. I think we all share the load equally, so, you know, it's just the -- so, let me talk about a couple of the enhancements. Our enhancements for our department this year are in the IT area. First is our application developer. We -- our current IT project list is over a year long. Mike Tanner is our senior database developer and Mike is a very gifted and an incredible asset to us and to the city, but the list is still over a year long. There is lots of projects. There is lots of needs that we have. Lots of departmental needs that have to be prioritized constantly and in addition to that we have the web site. We have put up an improved web site this last year. We are trying to get our citizenry to use the web site more and more on a daily basis to access the city, provide us information, gain information from us. What we would like to do is to -- at this point we feel that there is a good opportunity to hire developers, programmers, in this area that also would be tasked with making sure the web site thing is maintained properly. The worst thing we can do is have a web site that we direct people to go to and it doesn't function very well. And so it is critical to us to maintain that and we also want to make sure we can reach -- meet these department deadlines and needs in a more timely manner and so that's the reason for this request. De Weerd: Hey, Bill, before you move off of this one. Nary: Yes. De Weerd: If you can get to the Council Members the project list that the directors reviewed and there was discussion by the senior management team on -- on the need or if this is something we could hold off on. So, I think it would be helpful to see the list of all of the projects that are in the queue. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 18 of 91 Nary: We can get those. Terry has it here, so we will have it to you today. De Weerd: Okay. Nary: Next our intern wages. Since our intern program was initiated we have not had any review in regard for the pay that we pay these high school intems with -- from the Meridian Charter High School. With changes in the minimum wage, the minimum wage is now $7.25. We have been paying our intems eight dollars an hour since I have been here. We must be competitive in the marketplace. We were looking for quality students. We need -- this would allow us to hire intems at 10 dollars an hour. My favorite new place to go is Five Guys Burgers and Fries. They pay 10 dollars an hour at a burger shop for people's work. So, we are not just competing with other technology based companies, we are competing with just the general marketplace. So, this enhancement will allow us to be competitive with that in hiring the best quality intems. De Weerd: So, is that why you have been there so many times? Nary: Right. There has actually been a case study -- De Weerd: It's research. Nary: It's been researched in case study to make sure -- creating the right kind of folks for our department. Rountree: That isn't on your expense account, is it? Nary: It's been all on my dime and that's not a problem. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I would just -- a short comment. I met some of the interns yesterday and I was impressed. Nary: You know, to I guess give a little more kudos to Terry, Terry's done a great job every year at finding the right kids that can fit in our work environment. You know, it doesn't necessarily mean the number one kid in the class is the best person fit in our work group and Terry does a great job at finding kids that both can work in an adult environment and also provide us the technical support that we need. But, again, it's a year-to-year basis. You know, it depends on the students, it depends on their desire to want to work for the city. So, it's always a challenge. But we have been very fortunate, we have gotten a lot of mileage and a lot of value out of the students that we have had and provided them value back as well. This enhancement, really, just allows us to remain competitive. Inventory ID system. Our current system that we have, most of you are familiar with, are those little blue asset tags that are on the back of most any Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 19 of 91 significant item of the city. This -- but that system that we currently have requires someone to maintain that number, someone to write it down on a list, someone to maintain that list, someone to make sure when we get rid of that asset that we get rid of the -- it off of the list. This system for this amount for this enhancement would allow us to, basically, do that through a radio frequency ID tag, so that it could be done simply and faster and in a manner that's similar to the way we do our radio reads for water. Overall, it would be much more efficient in both staff time, as well as paperwork to change to a system like this. So, that was the intent of the enhancement. Hoaglun: Mr. Nary, before we move off of that system, is that your old office? Nary: No, it's a little bit small for my old office. Hoaglun: Oh. Okay. Bird: I think that's mine. I think they took a picture of mine about six years ago. De Weerd: It does look like Bill's, though. Nary: Not anymore. De Weerd: You're right. Bird: I didn't have those nice of windows, though, to look out of. Nary: The next enhancement we are requesting is for a new storage area network. Again, as we grow with our records and such for the city, the capacity is being squeezed very much by laserfiche, GIS, and the different things. We will -- we will reach our capacity of what we can store to a certain point. Terry has done a good job recently in making sure employees know how to keep things, what to keep, things that aren't necessarily a records retention issue, but more of a storage issue, how to do that, but even with those types of reminders and even with technology, we still have to keep a lot of information and so this will allow us to maintain that without us being squeezed, without people having to make those decisions instantaneously daily as to what they have to keep, so that the things that can be retained can be retained in an efficient manner. And, again, if you have additional questions Terry's here as well if you have more specific questions about these requests. Those are all the requests that we have from -- from our department this fiscal year, so our next -- our next discussion is with the city attorney's office from the city of Boise and our prosecution contract. Colaianni: Good morning, Madam Mayor and Council Members. Cary Colaianni with the city attorney here to talk to you again about our contract. I should tell you today we are presenting what we call our short program, if you know anything about ice skating or gymnastics, this will be the short compulsory program and we will be out of your hair shortly. Let me say this: We continue to appreciate this mutually beneficial contract. It helps both the city of Boise and Meridian. As you all know, we not only provide the Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 20 of 91 prosecution, but also the police advice to Meridian police department. All of those things are going very well. I can report to you, as we did just a few weeks ago, that things have even improved in terms of the way we can report our statistics to you and help your police department out, given our use of our new JustWare system. But, again, in the interest of keeping this short, I want to turn this over quickly to my chief deputy Steve Rutherford and Steve is going to talk to you about some of the things in the contract that have changed a little bit. Prices go up, as you all know, but also to talk about some things that are going on in the Ada County Courthouse that you all need to know about, court scheduling and things that are going to create some hurdles for everybody, because we have them managed and we are ready for them, but he's going to talk about some of those as well. So, thank you very much. De Weerd: Thank you. Rutherford: Good morning. Steve Rutherford, 1539 East Commander Street in Meridian. I have put a piece of paper in front of you that talks in longer form about what this contract entails, although I'm sure you're all very well aware. To cut to the chase, the increase this year is six percent. This six percent represents 15,636 dollars on an annual basis. This really comes in three areas. One represents an increase in the -- in what we have previously called indirect -- the human resource side the payroll side, those things that we are paying the city of Boise departments for to administer the payroll, those sorts of things. In addition, we have increased -- proposed increase by five hours the legal secretarial services provided as it relates to this -- the work of Meridian city. As we have transitioned to a court mandated iStar system, which is -- they used to have what they call an S-400 system, that's the computer system that drives the entire court system here in Ada County and, actually, it's a statewide phenomenon. The Ada County version is laborious, it's -- it takes additional time for our folks, prosecutors and support staff alike, to mine information from that system and so that has -- that, along with increasing caseloads, managing our new JustWare system, has increased the support staff component of the work we do in our office. So, we'd like to increase that part-time position by five hours a week. It is currently at 25 hours a week position, we'd like to make sure it's 30. There is citywide over in Boise a 4.25 percent increase in the salary and benefit category for employees, so that's also included. I do have some information I'd like to provide you as it relates to court efficiency measures at the Ada County Courthouse, but I feel like probably the first and more appropriate thing to have you understand is the services we provide your police department and to highlight those over the course of the last year and what's proposed going forward, we have had Jodi Nafzger, who works on our public safety team, she's going to talk to you briefly about that and, then, I will be right back. Nafzger: Thank you. Chief Lavey. Good morning. Madam Mayor, Members of the Council, thank you again. I join my colleagues in thanking you for the opportunity to be in front of you today. I do want to recap for you quickly some of the accomplishments we've had in terms of our civil advice work for the police department, something we love to do and we find mutually beneficial. As promised we added another half day this last year, so we have three half days that a prosecutor is in the office. I have had the Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 21 of 91 privilege for the last several years to supervise those attorneys. Terry Derdon and Wendy Dunn, very capable and competent attorneys to advise the police department, to be available to patrol, to detectives, to command staff, and even to the records division or the evidence custodians. We do a lot of work and do public records requests processing while we are there in the office as well. So, I think that's added some exposure to members of patrol and we enjoy being there very much. Another thing that we have done this year is we have formalized our ongoing legal training in the form of briefing scenarios. So, we actually -- when there is a new case that affects law enforcement, we reapt that in terms of its facts and its application to the police officers every day investigations. We put that on a one page briefing scenario that's designed to be addressed in briefing with each of those officers, questions are elicited, they can ask us questions by e-mail or phone and, then, ultimately, all of those are maintained in the Meridian patrol office that we have, so that we have a very good record of the cases that we have trained police on that particular year. Another thing we do is, of course, annual block training. We did that this year late February, early March, and that's when we train the entire ever growing department in two days and that is fun. We play games. We have great debate about the state of the law in Idaho and federally and, again, enjoy preparing for that each year and the U.S. Supreme Court, as you probably know, has not been afraid to make some pretty significant changes this year. So, we try to keep abreast of those and keep the police department similarly abreast as it affects their every day investigations. And, then, finally, we do -- Terry, in particular, Derdon does records training for new staff. We are in constant communication with the evidence and custodian technicians about property releases, weapons releases, and we have been invited by Lieutenant Overton to participate in the public safety academy for the last couple of years in their law and order session, which is very fun to talk to members of the public about police and fire in the City of Meridian. So, that's a recap of the civil advice and police work that we do for the city and thank you again for the opportunity to be in front of you today to pat ourselves on the back a little bit. Thank you for your time. Bird: Thank you. Rutherford: Just a couple closing remarks about some court efficiency measures. And I will put efficiency in quotes. A study was done recently, chartered by the Trial Court Administrator of the Fourth District Court, some jurisdictions, prosecution, and defense kicked in money to see if there was a better way to do business at the courthouse to deal with what is really an overwhelming number of cases. That study came back. It has some -- some constructive things to say and some not constructive things to say. There are things that we are going to try. We have just put on paper a pilot program to try block setting and I have been keeping in contact with Bill, your city attorney, about this. It's, effectively, an opportunity to try certain type of case settings in front of one judge, so Garden City will have theirs at one time, Boise city will have theirs at one time in front of one different judge, and Ada County will have a special setting for theirs. Just a very kind of thin, very narrow attempts to see if that's going to work and if it works it may be helpful going forward if they do it on a calendar -wide basis. Right now they are going to try it with one very distinct type of setting to see if it -- if it works. There are problems with it, but I think it's -- everybody is in agreement it's worth trying. The court Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 22 of 91 is insistent after the Supreme Court's weighed in and this court calendar efficiency study has weighed in, they are insistent that this Ada County Court, particularly the second floor, the magistrate infraction misdemeanor calendar, pick up the pace. They'd like to see people who get charged with crimes get into court more quickly. Their target is 45 days from the time you're charged to the time you show up for a pre-trial conference. Right now that tends to be 60 to 75 days out. A laudable goal and we are going to do everything we can to assist the trial court administrators and the judges and the other stake holders in making that happen. What it amounts to is shoving a whole lot of cases in a funnel and it's going to deal quite a blow to some prep time, so we are going to do our best. I'm working with the Ada County public defender currently to try to figure out how we are going to streamline our process to make this a reality. Currently we have at any one time eight to nine courtrooms going at once. They have added a new type of hearing that they just decided that they'd try that initially didn't involve us, but now it does, so now we have anywhere from eight to ten courtrooms to cover and that's a lot of -- a lot of folks at any one time involved in court. But we will keep you abreast of those changes. We will also keep you abreast of our latest statistics, as we did a few weeks ago. I'm happy to answer questions, but, otherwise, we will let you get back to the balance of your business. De Weerd: Council, any questions? Rountree: I have none. Bird: I have none. Rutherford: Thank you. Bird: Thanks, Steve. De Weerd: Thank you. Nary: Thank you, Cary and Steven and Jodi. I will reiterate, we really do appreciate the partnership we have with the City of Boise. This will be the 8th year that they have handled our prosecution services. The time that they spend is time that is invaluable to our department and to us and so it has been a good partnership for both the city and for the city of Boise. I just saw my segue go by. Talk about some of the other things, the human resources side of our presentation. Wages and recommended increase. For this year we all know budgets are tight, we all know budgets are very slim for our city, as well as many others, but in working with finance we are comfortable to be recommending a one percent across-the-board increase for employees as of October 1 st of this year and those would be for employees that are not currently on a performance improvement plan or an introductory period of employment, that one percent may be granted when that period is completed. If we do reach some target values, both the tax -- property tax and revenue sharing and the building permits revenue, we would also be recommending an initial one percent in April of 2010 for all employees. This would suspend our merit system process for one year. We feel based Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 23 of 91 on the current state of the economy, the current state of employment and unemployment in this valley, we think that's a reasonable recommendation, both fiscally, as well as for the benefit of the rest of the employees. Our current wage scale for the police and general employees will remain the same for fiscal year '10. In the past we have increased those wages between one percent and three percent, depending on the different categories and we recommend to leave them remaining the same for fiscal year '10 as they have been for this current fiscal year. These employee benefit recommendations, working with our consultant Mercer, they have negotiated a 9.9 percent increase, that's down from a 15 percent increase, which is really proposed by Blue Cross at 9.9. We are recommending and the benefits committee is also recommending a .4 percent addition. These are for oral contraceptives. We are the only large employer that works with Mercer -- Mercer is one of the largest benefits consultants in the area, that doesn't provide oral contraceptive as a benefit to their employees. That would be a total of a 10.3 percent increase to our cost of benefits. This would involved all the current benefits, plus the addition for the next fiscal year. So, that would maintain all the same deductibles and expenses for employees. The 9.9 percent in addition to the city, of course, would be absorbed by the employees as well. We did look at some alternatives and we did discover some other options and what Mercer did was they had Blue Cross price out these different options and there would be smaller increases as you can see, a 6.6 percent increase. They did change the co- insurance and the hospital coverage. So, it did make our cost back to the employees higher. There was a 6.5 percent increase that was proposed by Blue Cross, but that would change the individual and family deductible from 250 and 500 to 500 and 1,000 and there was also a 3.3 percent increase that was proposed and that would change all of those factors, co-insurance, hospital coverage, individual and family deductible. It was the opinion of the benefits committee that all of those changes were too significant to the employees with -- even though the percentages may seem significant, the percentage increase and the amount of the actual out -of -dollar cost to the employers was fairly small in comparison to the change in coverage. We did discuss whether or not we wanted to market our program to Blue Shield again. We did that last year when they were proposing a ten percent increase for Blue Cross. Blue Shield was coming in at less than that and Blue Cross came back at five percent. Again, the problem is you want to -- you can only go to the well so often for doing that and really get a truly -- a real number back from the other agency. They won't necessarily believe you. Or what will happen -- and that was the benefits committee's concern was they will give you a good rate for one year and, then, year two they will, essentially, make up that rate and what we don't want is we don't want employees moving from one program to another. It's very frustrating for employees, it's very difficult for them to -- to adjust to all of their coverages and all of their other issues they may have with their coverage if we switch back and forth. What we have decided from the benefits committee to recommend to you is that we truly look at a long term strategy for our medial coverage. We don't believe the city nor the employees can afford to simply absorb increases year after year after year. We have to have some alternatives in mind. There are many different products out in the market place and we'd like the opportunity to explore those for fiscal '11, so that we can truly develop a long term strategy for the city. The problem that we have currently is that if we don't do that, for example, in this year, 9.9 percent is an Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 24 of 91 absorbable cost. It was factored in by Finance. It is something that we can afford to do. But if, for example, the amount came in at 20 percent or more, well, we could remarket the plan. That may or may not get us anywhere. We may be, essentially, redesigning our medical program in the course of about three months. That's not logical and that's not good business. And so it doesn't make sense to do that. So, the direction of the benefits committee -- and the direction we have given to Mercer as our consultant is we need to look at other products that exist in the marketplace. We need to look at long- term needs of the city. There are innovative ways that other cities and other county governments have been able to absorb some costs of their coverage with smaller workforces and hours and so we are looking at some greater alternatives. So, my hope is that during the course of the next year we can bring back a proposal that says here is the plan that we have for a two to three year window and this is how we are going to stage it and get there over that period of time. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Is it possible on the employee health coverage to ever make like a two or three year contract with the provider or do they always go one year? Nary: For the medical coverage, Council Member Zaremba, they are -- their apprehensive to only do -- I mean to -- to give us one year quotes when they do. So, at least in our marketplace in this area, especially based on the size of our work force, I wouldn't anticipate them being inclined to want to give us greater than a one year for medical coverage and the cost of medical coverage, of course, fluctuates so greatly in the marketplace, you could have one or two members of your group essentially max out their plan and impact the remainder of the group and, then, that's another reason why the providers -- and the other reason is in our marketplace there is not a lot of competition. If you had more competition there certainly may be the desire for some of those to lock in a work group for two years or something, but here where you only have a few providers there is not a lot of incentive for them either. Zaremba: Thank you. De Weerd: Mr. Hoaglun. Hoaglun: Madam Mayor, Mr. Nary -- Bill, if you could help me out here. I noticed when Finance did their presentation they talked about they reduced the amount per employee for this year. How does that work based on -- that the coverage, of course -- the cost is going up? Did they -- are they making sure the number was high for this year and we can lower it a bit or -- help me out on that. Nary: Certainly. Madam Mayor, Members of the Council, Council Member Hoaglun, what they did -- it's based on what our projections were. The previous budgets -- what they had done is they had left the budget at what had been -- what had been Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 25 of 91 anticipated, even though what was realized, what the actual costs were ended up being less, so there was a different -- based on that -- based on those projections they were able to still lower the cost per employee in your base budget, it still comes out less than this 9.9 or the 10.3. There is still a little bit remaining left for the employees, because the 10.3 -- it doesn't incorporate the Delta Dental cost as well. But even with all of those factors -- when I met with Rita -- was it last week? Last week we still have enough that we have put into the base budget to cover the cost of what's proposed. Hoaglun: Okay. Thank you. De Weerd: Mr. Rountree? Rountree: I have no questions on that particular item. De Weerd: Okay. Nary: My last slide is on the additional benefits -- this is on, again, Delta Dental. They haven't -- they haven't given us a final number and part of it is, again -- all of these companies, they look to gain as much information as they can on usage before they are willing to give it, but Delta Dental is capped at a certain amount that they will pay annually, so it's not an unlimited amount that they are at risk for either. So, they have given us an estimate between seven and nine percent is what the increase for Delta Dental will be. That, again, is fundable in what we have currently set aside for employees. Willamatte Dental has requested a 6.5 percent increase. We currently have 16 employees enrolled in that program. It was a new program we initiated last year. The greatest benefits to employees in this particular -- excuse me -- this particular coverage has orthodontic, so folks that would like orthodontics, that's an opportunity for them. Even though Willamette Dental had closed some local offices, they actually have a Meridian office that is their primary point for this area, so that it will benefit our employees at least that either work or live nearby to the City of Meridian. But we do want to monitor in the future. I mean if we don't grow this employee base, there is a point where it's not -- it's not a value to the city to try to carve out another benefit that has to get paid, another vendor that has to get paid, when there is very few employees that are involved in that program. So, we are going to monitor that for a couple years. The committee discussed that if the decision was made at some point in the future that it was not a viable program, that we had too few employees that we may have to look at a run out period, because there may be employees that have entered this for the purpose of orthodontics and they may need two or three years to get their orthodontics completed. So, we may have to look at a run out if we don't continue with it. But for right now we feel we can at least maintain it for another year and, then, we will make that evaluation again. Our vision service provider gave us a no -- a zero percent increase for next year. United Heritage, which does our short-term disabilities, long- term disability, and our life insurance, also gave us a zero percent increase for two years. Our employee assistance program gave us a three percent increase. This is one, if you recall last year, we added from three visits to five visits for employees. I told the benefits committee this is the only thing we have done in benefits in the last couple Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 26 of 91 years that employees have actually called and thanked me for. Most people don't always realize the value of the benefits they have usually until they leave, but EAP is something they realize the value of now. When they need it for whatever reason, whatever is going on in their life right now in the fiscal crises that we are dealing with in our country or whether it's at home or work or whatever it is, the five visits, the additional visits that's provided under our program has been a great asset to the people who have used it. So, it has been a good program for us and the increase, again, is fairly small. Discovery benefits, our flexible spending program, also gave us a zero percent increase, so we were very happy with that. That has been a very successful program, the more we have pushed people towards that, the more they found value. We have had some glitches, there are some times that people find it frustrating to provide the supporting documentation that's necessary. They find it sometimes irritating to have to send their receipts in. Some of the federal regulations that go into effect July 1 will probably change some of that, so some of it will probably not be quite as irritating as it used to be, but it is -- overall it is a very valuable benefit for the city. A couple years ago my grandson made it into the slides, so I did want to use my granddaughter. But, anyway, that was my last slide, if you have any other questions. De Weerd: Thank you. Questions? Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I have a couple questions on the IT. With respect to the developer and the list that we were subsequently provided, it appears that there is a two year back log. My assumption is that one of those years would be handled by existing staff and the new staff person would work towards reducing the other 91 months of work that appears to be there. Has there been consideration of doing that by contract to get it -- to expedite it and get these requests taken care of sooner, as opposed to later, even with an additional staff? Nary: Madam Mayor, Members of the Council, Council Member Rountree, yeah, we discussed that extensively on whether or not that's a practical approach. What we found out -- and I can certainly let Terry add on, but what we found in the past -- we have done that. We have tried contracting for specific projects and what -- what Terry has found and IT has found -- unless you have a very narrowly defined project, that's very, very straight forward and simple, it doesn't take up a lot of IT time later. But what happens is if you just say -- start on the list and you start at number 27 and move down until you get through them, what happens is, again, you have got different folks, they have a different level of responsibility or accountability and what we found many times is when we got the product back, because it wasn't so narrow in scope, that we spent a lot of time internally fixing it, debugging it, making it fit, making it compatible. So, it didn't seem like a very practical approach to doing this, when many of these needs, again, are long-term needs or needs that aren't just fix the program and move on, but, anyway, Terry, you have an addition that you want to add to that? Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 27 of 91 Paternoster: Madam Mayor, Members of the Council, I do agree with what Bill said. I think that one of the challenges that we face consistently is that when we have contacted out projects in the past -- really, one of the challenges is that you -- right out of scope you get somebody and say, hey, we want this and they go through that list, they check it off, they do everything and, then, they hand it back. Well, typically when people do stuff like that it's usually a chop stop approach, the code's not really made to be extensible or for us to build on it, it doesn't take a long term approach, it usually is directed with a specific project need and meets that one objective, but it doesn't necessarily integrate with the overall processes that we are trying to achieve and so the challenge is -- and one of the ways that you can handle that is by spending additional IT time up front, you know, defining the scope, saying this is how it has to be, going through a constant review process, but, then, that ends up reducing the amount of IT time that we can spend on the additional projects that we have or else we have to hire project managers and other staff to take care of things like that. You know -- and one of the things that I will say is that, you know, the development within the city that has been very successful. You know, when we initially asked for a developer, I think a lot of departments weren't really sure what you do with a developer. You know, they kind of had some general ideas, but since adding -- you know, we have went through three developers, Mike's our third one, he's been here probably four times longer than the other two combined. But Mike comes with extensive experience and knowledge and as departments have recognized the benefits that they are getting out of developer, what we are seeing is that this project list is not shrinking, it just keeps growing and growing and growing, because the integration and the efficiencies that we are finding through doing in-house development just far outweigh the cost that the city is spending to pay for development staff. You know, through the integration of programs, tying together the intranet, pulling ABRA information in and making that our sole source, which is the HR module, you know, and tying that to the other systems that we use within the city, that we just get a lot of benefit and our experience is that if we go with contract service that it's either going to take a larger amount of Mike's time to monitor and manage those projects, which takes away from his stuff or else we are going to end up with code that -- basically what Mike calls spaghetti code. Rountree: Thank you. Nary: We like being victims of our own expertise. Zaremba: Madam Mayor? Rountree: I have a follow up on one of your items. You talked about increased storage, which brings the question to mind what have we in terms backup and a recovery plan? Paternoster: Yeah. We actually have a pretty extensive backup and recovery plan. We recently -- last year Council and the Mayor were kind enough to grant us funding, so that we could purchase an additional backup process system. We purchased and implemented ComVault a couple months back and, basically, what the software allows Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 28 of 91 us to do is it allows us to do a backup each night at City Hall, so we are no longer doing off-site backups. All of those backups are coming back to City Hall. We have been able to do that through the implementation of fiber between the police department and City Hall and the Watertower. We have also reduced the server over at the Water Department and so, basically, the locations that we have to backup that are off site are of the wastewater plant and the police department. All other places with consolidation of the departments into City Hall have allowed us to take all of that information and back it up locally and so we did get some benefit out of the consolation of the departments here at City Hall. And so we replicate that data over to the police department every five minutes, a lot of the core data. Not all of the core data, but the majority of it, like a lot of data bases, some of our machines and some of the more important data gets replicated every five minutes over to the police department. It's not perfect. Sometimes it might be an hour, sometimes it fails. We also do nightly backups to disk and also to tape and we have off-site backups of the tapes, so that in the event that something was to happen to City Hall, you know, we might have to go back a night, we might have to go back a couple nights, but we should be able to successfully restore all of the data within a couple of days. Rountree: Thank you. De Weerd: Mr. Zaremba. Zaremba: Thank you. And this was just a follow-up comment on doing things in-house, as opposed to contract. It's a long time ago, but I was a programmer at one time back in the dark ages and my experience at the time was -- is that it was sort of an art and it was very difficult for one person to go in and fix something that somebody else had done and so I would say that I support the idea of having an in-house person, who is going to be here to have memory, as opposed contracting it out and, then, if something needs to be debugged, as you said, we have a struggle doing that or have to go back and re -contract with the same person. So, I like the in-house thing. Back to the health benefits, one question again there. Do we get any credit for our wellness program? I mean we have a new exercise room in our new City Hall or do they just watch what the change in the claim habits is? Nary: Council Member Zaremba, that's generally what they do. I mean they don't have -- none of them local companies, Blue Cross, Blue Shield, have quantified what does that does mean to them, that you have a health or a wellness program of some sort. So, they haven't figured out what that is. But it does relate to claim usage. Our largest claims in the past year have not been related to health related items, like heart attacks or diabetes and things that are treatable if they are detected early, which is part of the intent of our wellness program is to get people healthier sooner to get them to be aware of their health sooner. Most of our higher end claims we have had were related to birth and so those are things that are pretty hard to address up front in a wellness thing. So, it really does go to usage. Because we have had lesser heart attacks and diabetes claims and kidney failures and liver failures and those kinds of things, that does relate to our usage and it does relate to our experience level, so that we get a lower rating. But I Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 29 of 91 have asked for that, that we find some way -- if they can't quantify it, and, then, some way we can quantify it to them, because as we negotiate those rates we want to be able to show -- there is some value that we bring to the table by having a healthier workforce. Zaremba: Thank you. Hoaglun: Madam Mayor? De Weerd: Yes. Hoaglun: Question for Terry. I just wanted to explore a little further, Your experience in using an outside developer, has that been with a -- out -sourcing to a development company or has it been using a temp staff type of system? Paternoster: Yeah. All of our experience has been with using an outside company that we have contracted with and not using temp services. You know, I have looked at temp services, but it does appear that, you know, the cost to hire a temp person is somewhere around 70 dollars an hour, you know, to bring them in staff and when we have looked at that option it just seems cost prohibitive given the amount of projects we have. Hoaglun: Yeah. Madam Mayor, just -- in the controller's office we use temp in specific projects and, yeah, you do have to look at the scope of the project and weigh the benefits, but we were successful in using temp agencies and they matched up the people that you need to the specific project and the skill set, so that's something I wouldn't rule out, but you do have to look at -- at the scope of the project as well. Thank you. Nary: Any other questions? De Weerd: Any further questions from Council? Nary: Thank you. De Weerd: Thank you. We appreciate you and your team. Even Boise's. Thank you for being here. De Weerd: Okay. The Mayor's office is up. Simison: Thank you, Mayor, City Council. I will try to be very quick and very brief and maybe even beat Todd putting up my presentation, it's because it's so short. I just want to say, you know, when we looked at this year we were definitely focusing on -- on our base budget and making changes to the base budget down to reflect true costs within the five year historical trend. By doing that between the Mayor's office, the city clerk, economic development and City Council working with President Rountree, we were able to see some cost savings of about 64,000 dollars between those four departments and Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 30 of 91 operating base budget, not taking personnel into account, since that's something that was beyond our control, depending on whatever was discussed. So, a large portion of that was BVEP dues. I think -- I don't know if the Mayor has spoken to you about that, but there was a fairly large decrease in BVEP dues for this upcoming fiscal year or what the city will be paying. The other thing I just wanted to touch on very briefly and that was something that was already discussed by Todd or Stacy earlier and that was the split that we did into Enterprise Fund for our services, making us more on par with the other departments in the city. Previously we had one staff position that was a 33 percent for that position, along with General Fund, Enterprise Fund, Developmental Services, working with legal and others, we went ahead and split a -- just flat rate across our department of 15 percent for everyone, excluding the Mayor, for the work that we do related to Enterprise Fund services. As I mentioned it treats us like the other departments in the city, but had a lower rate. But we do reflect that we do do work for the Enterprise Fund. So, with that I will be happy to answer any questions and we will get to the clerk's enhancement in a few minutes after the police department. De Weerd: Council, any questions? Okay. Thank you. Simison: Thank you. De Weerd: Okay. Next on our list is the police department and we have Chief Lavey with us and his senior management team. Lavey: Madam Mayor, Council, we will give the -- Todd just a second to bring up the Powerpoint. While he's doing that I am going to share one -- one statistic with you. Yesterday on a project I was working on with -- with the Mayor's office for Robert, we were doing some crime figures and I just want to say that for all cities with a population over 30,000 here in the state of Idaho, Meridian is the safest in regards to the rate of crime. So, that's something I think we can be proud of. De Weerd: And we are. Lavey: Yes. De Weerd: Thank you. Lavey: It put a smile on my face. Kilchenmann: Aren't you going to ask him if he would have said that if it had been bad? Lavey: I still would have said it, I just would have said it differently. I do have a list of the winners or -- you might say losers here, the top counties and the top cities, but we won't share that right now. Bird: Caldwell and Nampa has got to be two at the top. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 31 of 91 De Weerd: So, who are they, while we are waiting for your Powerpoint. Lavey: Pend Oreille, McCall, Chubbock, Blackfoot, Garden City. De Weerd: Wow. Shoshone. Valley. Bannock. Nezperce. Bonneville. Some of those is because of the tourist destinations. Bird: That's what I was going to say. Lavey: I don't think they would all be a high crime rate area, but because of the tourist population and stuff it — Bird: I know that Nampa and Caldwell prosecutors work a lot more cases than we do. Hoaglun: Is part of that, chief, you know, if -- you know, what constitutes crime, I guess, on that? Is that -- how is that defined? Lavey: There is actually group A crimes, group B crimes, where they actually, you know, you got the typical homicides robberies, assaults, batteries, something like that and, then, they got group B crimes you have like your DUI's, crime against society, such as drugs and everything else. And so they have specific data that they collect on each one of those crimes and, then, they will separate it out and say, well, this is the rate for group A crimes, this is the rate for our group B crimes, and, then, they put it all together and that's the stats that I'm quoting. So, if you want to look at it separately you can, too. It is all online. And, then, our clearance rate is -- is 46 percent, which is higher than most cities do, which is nice. De Weerd: Which puts a smile on your face. Lavey: Did he get that or -- Bird: What, were you given a bum deal or something? Lavey: Okay. Well, we will do it without the Powerpoint. Zaremba: All the IT people left and the computer knows that. De Weerd: Nice hat, Anna. I forgot that it was patriotic -- Hoaglun: Anna, can you hear us okay if I'm talking like this, are you -- we are better? Because, Keith, you said Aatronics had come out? Okay. Lavey: Maybe I'm more qualified for that IT job. Bird: Holy cow. You want that IT job, Chief? Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 32 of 91 Lavey: You know, keep it in the hopper. I might need it after this presentation. Madam Mayor, Council, when we first got the notice of the schedule I made a comment to Stacy that I only had 15 minutes and I didn't really think I could accomplish anything in 15 minutes. So, I will try to make this really brief. Not many enhancements. There is a couple things that I just want to talk about. The biggest enhancement we have has been withdrawn, but not -- that's temporarily, not permanently, and one of it is the cops grant. We actually applied for a position with the cops' grant, which would total about 750,000 dollars over a three year period. I can tell you that Meridian has past the original -- or the first screening of the questions and so far no awards have been made. So, Finance has asked me to withdraw that enhancement until such time we find out if we are successful or not. If we are successful, then, I will come back for a budget amendment request. But the figures are in front of you, you know what we are facing if, in fact, we are successful. It's a one hundred percent match. I mean, excuse me, it's one hundred percent coverage for salaries. We would have to purchase the equipment for the officers. That salary includes benefits and everything else as well. So, moving on to my first enhancement is K-9 replacement. As you probably have seen over the last several months we have been working on a fundraiser for a K-9. Really, it's for not only the purchase of a K-9, but it's the purchase for K-9 agility equipment, which we would cost us over 20,000. 1 wasn't going to come in front of Council and ask for 20,000 dollars. I am asking for 9,000 dollars, which is the price to replace the dog. All other ongoing expenses have already been covered in previous budgets, including salary of the officer and everything else. So, it's a one time expense. I will tell you that we have earned about 4,700 dollars so far in our campaign and my thoughts are as we stand right now we have four dogs, but our goal is always -- four dogs, three of those are dual purpose and one of those is drug only and we have actually -- a goal has been to have four dual purpose dogs. My intentions would be to actually sell our single purpose dog and, then, to use the monies to purchase an additional dual purpose dog. I would present that to Council when that comes. Right now we don't have enough money to -- to make that even possible. The third item on here is investigative technology. I will note that there is two items on here that have been approved over the years for our investigative division, an Ocean system as one, which, basically takes analog data, videos, music, and converts it into a digital format, since that's where technology is. We never -- we never did budget the maintenance contracts for that and so we have a 20,000 dollar system that has never been tuned up, looked at, anything else, other than by our open IT people and if we don't put something in place we are going to have a major expense when it could have been a minor one. So, that is an ongoing expense. The other two items are investigative tools that we have used for many years now, as far as tracking suspects in our criminal investigations, but the key thing that I need to point out to Council is that we have been using other cities to get that data. What we are finding out is, of course, their cases take higher priority than our cases and we have grown to the point where we need to start paying for it ourselves, so we can get first dibs at it, too. If we don't have this data, then, a lot of times our cases sit dormant and don't get worked on, because we -- we can't track down the suspects. And so those are the -- the two other areas. And, then, one is an ongoing cost for a GPS tracking system, for a total -- total on ongoing cost of about 8,000 dollars. The two high areas for the police department is cars and computers and so I was going to highlight those Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 33 of 91 right now. Our goal has always been to try to rotate the fleet cars every three years. When we rotate them every three years we have about 90,000 miles plus on those cars and, then, our support cars, which are -- anything that's not driven 24 hours a day, we try to replace them every seven years. That's not always the case, but that's the goal. I can tell you that we have had specific electrical and mechanical issues on many cars in the support side and I can tell you that last year we had 77 percent over budget in maintenance trying to keep our cars up and the key thing is here you keep the cars longer, you're going to have to pay for them and that's where we are at. And, then, I submitted a pretty -- a pretty lengthy list of cars and, then, when I was looking at where we are at with the budget process, I actually withdrew four cars. You will probably see in your note that there is just some cars that are extremely old. They are going to be nine years, ten years old, but they have low miles on them. Yes, we have had -- we have had mechanical issues with those cars, but we can probably get by for another year. Just keep in mind, the longer we hold those cars, the more maintenance we have. We have kept cars before and I have wanted to sell them and I have been asked to -- does anybody else in this city want them and, then, we tum them over to the city and the next thing you know they end up spending 1,500 to 2,000 dollars to repair that car. I know that human resources and IT have been the victims of that many many times. When we tell you the cars are bad, they are bad. So, that's -- that's it for the cars. And, then, the computer replacement -- just need to point out that after the -- the original budget was submitted, we worked with IT to replace only the outdated, the computers are replaced every five years and the essential computers -- so we withdrew that and took many computers as well off our list. And then, the one thing I need to point out is that the -- what's different this year is that we added the patrol vehicle computers, the MTD's that are in the cars, we actually put those on our computer enhancement budget, instead of in the vehicle enhancement budget. So, in the years past you have actually -- they have actually been there, but they have been done in a different line item and haven't been specific and so you're going to see an increase of -- I think seven units on that request. The next slide I have is to invoke some thoughts and some discussion, so I guess I would take questions on -- on those items that I have covered so far. De Weerd: Council, any questions? Rountree: I have none. De Weerd: Okay. I think for the longer time, Council Members, I'm surprised you're not falling over, that we don't have fixed -- big requests in this department and I will note that Jeff and his management team have really taken a look at the needs versus the wants and have been very conservative and that's been greatly appreciated. Lavey: So, I shouldn't talk about the 35 officers we are going to need when Ten Mile gets done? De Weerd: Don't bring that up yet. Rountree: Talk all you want. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 34 of 91 Lavey: As I told the Mayor, I said I'm going to ask for twice as much next year. But, like I said, is I can add so it doesn't mean I did. These are just two items that I want to talk about very very briefly and the first one I know that Councilman Zaremba mentioned it in Council a couple weeks ago and this is mainly just to invoke some thought. We are talking about the impact that the citizens use permit are having on the police overtime budget. And every year we keep getting great events in the city, with different runs, different events with Dairy Days, the parades and everything else and we welcome those, but as I started seeing the requests come in, I started doing some school calculations and we spend about 4,800 hundred dollars per parade for police overtime, which equates to about 9,600 dollars a year just for the two parades. But, then, we have a lot of other people that -- that want our attention. We had the Barn Sour run. We have some other runs. We had the Public Works run this year and I told them they couldn't have it, because we were going to -- it was going to cost us staffing time, but I was just kidding there. But we get to a point where we need to talk about either a special line item budget for special events, so it's not coming out of the overtime budget for court and for those times that we have to keep officers overtime to cover the public safety needs and then -- and this is -- might be difficult to swallow for some, but the ability to charge. An example of what I mean by this is if someone comes up to us and says we'd like to hire two police officers to cover enforcement at our event, we have no way to recoup our cost right now. So, I either have to take from staffing and not take two people from the road or put them in an overtime basis, which we just don't do, which tends to fall into -- and they start making requests to other agencies, such as the sheriffs office and such as Boise saying, hey, would you come out here and do this. And, then, we have officers from other agencies working in our city. So, this would not be a money maker for us, but it would be a way to recoup costs back. If someone came in and said that we wanted to do a special event and shut down the roadways for six hours right now, we would tend to say, you know, no, but if it came to the point where, you know what, we could probably accommodate it, because the traffic is not a -- not a concern there, is that should we expend police services to do that. That's the question. So, I have worked with Bill Nary's office and Emily has been working on some research in this area to find out what the other cities are doing, how they are doing it. I can tell you that -- that Boise charges for it. I can tell you that we have done some research on some other agencies, such as Seattle PD and their special events budget is about two inches thick and I don't want that many policies in regards to this. But I'm not asking for any -- any decisions, I'm just throwing that out on the table for thought. The second item -- Hoaglun: Question, Madam Mayor. De Weerd: Yes. Hoaglun: Chief, on that, just to be sure I got it clear, it's when you need police for special events, like parades, that they have to be actively involved, as opposed to special events in a park. I was thinking of the Renaissance Fair, I think that was just kind of a walk through, that's part of their normal beat? Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 35 of 91 Lavey: Yes. Hoaglun: So, there is a distinction between special -- Lavey: If Council came in and said that we are going to approve Renaissance for -- if you have X number of officers there, if we are going to require that, we would have the ability to sit there and say, okay, it's going to take X number of officers at this price and, then, that's a decision they have to make, do they want to pay that or not. A couple other examples we've had is the speedway's approached us, we have had a semi pro soccer group approach us and say we'd like to hire police officers to man our events. We have not been able to do that. And, then, a perfect example is the iron man competition. We actually went to assist at the iron man competition in Boise and they volunteered to recoup our costs back. Well, we don't really have a procedure in place and so we put them over with Finance and we are going to try to get monies back in there, but there is no nothing that says that, you know, we can do that, so -- Hoaglun: Thank you. Lavey: But, no, as far as what our normal duties are, no, we still do that. And the other thing the Mayor and I talked about and also Councilman Zaremba and I talked about is that -- and this is going to be -- come with some difficulties, but some of those -- those groups that we have always done it for for that last eight years, we are not looking at going back and saying, oh, we are going to stop doing that. So, that would be the -- I wouldn't propose charging for the parade or anything else, but -- I'd like to, but I don't propose that. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: This isn't exactly in line, but do we not have reserve officers anymore? Lavey: No, we do not. Bird: Why not? Lavey: The staffing that -- the time it takes to have the reserve officers, the training commitments, the risk management concerns, I have just enough staffing to go out there and do the minimum, I don't have additional staffing to supervise reserves. Bird: It's all we -- well, let's put Boise, Nampa, Caldwell, they have all done away with their reserve officers, too? Lavey: There is no reserves in Boise. There is no reserves in Ada County. I can't speak for Nampa. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 36 of 91 Rountree: Madam Mayor? Lavey: Oh, excuse me. Rountree: Go ahead, Jeff. Lavey: There is also a -- I ate to bring this up, but POST is involved as well. POST certification in regard to -- I can't get police officers in the academy, let alone reserve police officers. Bird: Can't get them in the academy, can you? Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I support what -- what Jeffs saying about this particular item. I think that -- I don't know that there is a prohibition that we can't charge or that we can't take money, it's probably we don't have a policy or procedure, but I think that, yeah, we ought to -- we ought to have a process in place were if a special event requires additional security and we can provide that at a cost, we should be able to establish that cost and take the money. De Weerd: I guess, Council, I -- what the chief and I have talked about is identifying what are those core community events that we can bring back for a discussion with Council and that those to come in in addition to those, you look at some kind of a charge. Also in how we could maybe utilize some of our alumni from the public safety academy. So, we are exploring options and that discussion can come back to you. Bird: Madam Mayor? De Weerd: Yes, Mr. Bird. Bird: I agree with Charlie, if they are costing us 4,800 for a parade, we ought to be getting some back, because -- and I'll get my throat cut by my board, but I don't see any reason -- they charge for the entry, so if it's -- you know, that seems awful high 4,800 bucks for a two hour parade, but I guess it does last a little longer than two hours. De Weerd: Yeah. It was a long one. Bird: It was a long one this year. Zaremba: Madam Mayor? De Weerd: Yes. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 37 of 91 Zaremba: Well, even a parade, I mean there is hours ahead of time of setting up and breaking down afterwards. Bird: We feed them lunch every time. Zaremba: Actually, this is a side issue, but speaking of the parades, we are very fortunate that for years the Kiwanis Club has supplied road closure services for us. At all the intersections you see Kiwanis people that are doing something and that in other cities when they have a parade they hire off-duty police officers from other cities to come in and do the things that Kiwanis is doing for us there. So, that's something we appreciate. Now, actually, on the subject, I know we will have more of this discussion, but to me the distinction of having a special line item in the budget for this is the general overtime budget in the police department should be used for their normal activities and when I think of theirs, if a police officer responds to an accident and, then, has to stay there beyond the end of his -- his or her shift, that's overtime. Apparently court appearances are overtime. Those are things that are in the normal line of their business and the normal payroll overtime line item should do that. The reason that I think we should have a special separate line item for the activities is that's not their normal business and if it causes overtime, it helps us make the decision of whether this is something that we ought to be charging back to the special event people or we may decide the city is going to subsidize it, but it separates it out of the normal overtime stuff, so that we can actually make an intelligent decision about it. Lavey: It would add the ability to track that history that we don't have now without going and doing a lot of manual checks. De Weerd: Thank you. If there is nothing further -- Lavey: And, then, the one last -- looking at my time I'm trying to make sure that I only take up 15 minutes. The last item is the firearms range. I want to let you know that I haven't let this die. It still exists. In fact, the Mayor and I actually discussed this last -- no, it was this week. Monday. This week. And one of the -- a couple things that we talked about is because of the changes in the drop in construction costs and the drop in steel and everything also, that at AIC last week they said now is the time to build those capital projects. And, of course, you know me, I'd love to build this tomorrow, but I realize that it may not be the right time based on the economy as well. And so two things that we discussed last week -- or, excuse me, on Monday was a phased -in approach. I know we have discussed this before, but one of the things that I thought I might do is go back and see what the bid would be -- a potential bid would be for the pistol lane only. I know at one time we had 25 pistol lanes and ten rifle lanes and that rifle lanes was an additional quarter of a -- or, excuse me, half a million dollars just in steel. It is maybe design a building to the point where we can actually have a pistol range and not as much up front classroom that shot of thing, and see what we can get. And, then, the other thing is we have talked about partnerships in the past. I will tell you that the other municipalities and the county agencies are actually hurting. They had no Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 38 of 91 monies or the willingness to go in any sort of partnership with us. They can't even commit to user fees. And, then, I guess some of them are still doubtful on whether this will even -- even happen, so they don't want to give commitments to something that they don't believe is going to happen. One of the things that we talked about, the Mayor and I, was possibly getting with Keith Watts and Bill Nary and talk about writing an RFP for some sort of partnership to see if somebody was out there willing to build it, you know, split the -- the range time and everything else. But those are just some thoughts that we have been running by and I just give them to you, so you can start thinking as well. After we get done with this budget process I think it's time for us to sit down and meet again and discuss it further. And with that being said, I will take questions on that matter or questions on any of the presentation or any questions that you want to ask me for the next couple of minutes. De Weerd: Council, any questions? Rountree: I have none. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Not a question, but I -- even though the chief sent a -- I would like to reemphasize a couple things on the firearms range. I had attended a couple of the Association of Idaho Cities meetings -- presentations and the point was very solidly made that this is the time in a down economy for cities to do capital projects if we can. The costs are cheaper and we put people to work in the process of doing it and we get more bang for our buck out -- out of it as we have seen with a few contracts that we have gotten in recently that were below the bids that we expected and it always -- it's kind of counterintuitive to say you should spend this kind of money during a down economy, but that -- they were saying this is the right time to do it and the justification is you get more bang for your buck and you employ people while you're doing it, so -- and this is, again, a case where I call in my favorite -- what's the cost of not doing it. We are paying Boise for the use of theirs and we are spending time getting people back and forth to it and, you know, to have it in our own city is a good idea. So, I look forward to this discussion and I have tipped my hand that I'm in favor of it. De Weerd: Okay. Thank you. Thank you, chief. Lavey: Thank you for listening. De Weerd: Okay. We are right on schedule. So, up is City Clerk, Other Government. Simison: Madam Mayor, City Council, just go over a couple quick enhancements for you. First the city clerk's office does have one enhancement request, that's for a laserFiche scanner. The current scanner that is being used is intended for minor scanning purposes, about 20 pages per day is what its intended use is for. They are far Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 39 of 91 exceeding that, so the requested scanner is one that's capable of doing around a thousand pages per day. This will help them with their -- with their time to making more records available to the public online. So, that's what the request for that enhancement is for. Jaycee, did you have anything you wanted to add? Hoaglun: Madam Mayor, Robert, that's contingent upon if we approve IT having more storage, because if they don't get more storage why are we scanning? Simison: To a certain extent -- I mean it is something that they are getting -- they will continue to do. One way or another we will find a way to do the scanning. But, yes, I mean it's a larger issue. I think that as we all look at removing duplicated files off of the system we are going to reduce the amount of storage space that we need long term, but it's a long term need, yes. Hoaglun: Okay. Thanks. Simison: The second enhancement -- and this is for Other Government -- is membership dues for Sage. Sage is a membership -- is an organization the city has belonged to and, then, not belonged to and has belonged to and not belonged to once again. Kind of ping-ponged back and forth over the years. Once again we are recommending that the city belong to Sage as recommended to us, we are the only community in the ten county region that is not a member of Sage. In order for us to continue to use their services at the reduced contract rate for grants, which is something we do see as potentially having more of in the coming years, we do need to be a member of Sage and it will also be of benefit to our business community, because they receive loans from Sage. They do give priority in those loans to members that -- to communities that are members of Sage. So, for the small amount of money we felt like it was a good investment to give opportunities for our community for those funds. And as was noted earlier, yeah, we did reduce some of our other commitments in our budget to our regional partnerships for economic development through BVEP and while there is no other changes that are being made in the economic development arena at this time, we have been working with our Council liaison on finding a way to achieve a full time resource in the economic development efforts related to our targeted enterprise zones in supporting our growing businesses -- business community. So, this is a small enhancement. There is a reduction in other economy development services and we are continuing to look at that area to improve our services. So, with that I will stand for any questions. De Weerd: Council, any questions? Bird: I don't have any. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 40 of 91 Zaremba: It's not a question on what you have talked about, but this is under Other Governments and I would like to bring up what Steve Siddoway mentioned yesterday about the ADA -- or Monday about the ADA compliance, which appears to be division 1840, account code 6800, under Other Governments. There is a line item of a thousand dollars for ADA compliance and Steve's feeling, which I support, is that we are likely to have more claims come forward in that department. His suggestion was we change this line item to 10,000 dollars, not have it be specifically in the parks budget, but have it be in the Other Governments budget as it currently -- where that line item currently is, because the ADA compliance issues could come up anywhere, but now that they are beginning to happen, support the idea that this line item probably should be 10,000 dollars. De Weerd: Yeah. And I think that Mr. Nary can talk to them. Thank you, Robert. Nary: Madam Mayor, Members of the Council, just to follow up on that, the -- the ADA also requires that there be an appeal process for ADA compliance questions -- or issues. Our current city policy handbook only addresses ADA in relation to employment issues and not everything else. We need to have a policy change to make sure it's clear to everyone it applies to everything else. I think in the past, from what I understand from the Finance Department, the intent of that budget was for most of the time internal compliance issues that probably also paid for ear phones for folks at the old City Hall, if that was necessary. I think this one is just kind of covered in the current budget, but that was the intent if someone needed a chair or a ramp or railing or things like very very minor kinds of things. Well, as we all know, we probably may have -- we may have more type of requests for different things with classes and access and such. So, I think it is wise that we move that budget up and, then, like I said, we will be bringing a policy forward that makes it clear that folks have an appellate process that they can follow if they go through my office and it's denied for whatever reason, then, they can appeal, then, to the Council ultimately for relief. Rountree: Madam Mayor? De Weerd: Yes. Rountree: My preference on that particular topic is that we have a policy in place before we throw money in a problem we don't have any idea -- 10,000 might not even be close to enough. Having put some thought to policy and potential scenarios, so I would suggest that we get that in place or at least get that through some kind of a review process and, then, proceed, if necessary, with the budget amendment for that kind of a line item, as opposed to just putting some zeros on a current line item and, then, not having any justification one way or another on whether you spend money out of it. Nary: And certainly either way is fine. The Council did direct us to bring back a policy anyway on both the parks access, but I think it will certainly be more broad than -- broader than just parks. So, we can certainly wait until that -- that comes in front of you. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 41 of 91 Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I agree wholeheartedly with Charlie on what he just stated and I also -- our buildings are new and they should all -- our buildings should be ADA compliant. They are required to be. I realize we got some areas in this building that, in my opinion, isn't -- which we will look into talking care of, but it's not as if we are trying to -- trying to update old buildings, they should be ADA compliant when we build them. Nary: Madam Mayor and Council -- De Weerd: I think this is more in regards, Mr. Bird, to the -- if we were to hire someone, because the hearing impaired were to attend the City Council meeting, that we would have to provide the interpreter for that, so it's more along that aspect than bringing buildings up to code. Bird: Okay. Nary: The ADA has also been revised this year. Madam Mayor is absolutely right, that's the intent is that we may -- it's not just building compliance, but individuals, but the ADA was revised this year and has expanded the scope of the ADA significantly as to who is eligible for ADA relief, for lack of a better term, so that's really what the intent was. But we will bring a policy back in front of you and that might be the appropriate time, then, to discuss the cost of that one. Thank you. De Weerd: That's a great idea. Caleb, do you want to address the Valley Transit? Hood: Yes, Madam Mayor, Members of the Council. Thank you. De Weerd: Thank you. Hood: This item also falls under Other Government. I don't have a Powerpoint presentation for you, but I do have a handout that I will give to you in just a couple of minutes. After an April presentation to the Transportation Task Force by VRT staff, Valley Regional Transit staff, that commission asked planning staff to present the idea of a Boise -Meridian VRT partnership to fund a Ustick route through Meridian and down into Boise. I did bring that topic to your April 21st workshop, so you all probably remember that discussion. Before that meeting I worked with Todd to prepare the enhancement request for 63,000 dollars, which is a cost to operate that Ustick route for one year. That discussion at your April 21st workshop, I came away with that you weren't comfortable with funding that additional route in the current economic climate and that you wanted to take care of what we have already invested in thus far regarding public transportation. In addition, there were concerns about the market studies and surveys and would this route really even work if funded. So, again, you didn't seem to be -- but you did seem to be interested in funding potentially another route or two on the Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 42 of 91 route 40, which is the -- the inter -county Nampa, Ada County inter -county bus. So, staff would like to modify the current enhancement that is with Finance for the 63,000 dollars for the Ustick route and, instead, ask for 15,000 dollars, that's one five zero zero zero, for an additional a.m. and p.m. trip to the Route 40. Margaret Havey with the VRT is here and I will turn it over to her here in a minute to give you some more details of that route and just a refresher on what that is and what that money will get on -- will buy. But before I do tum it over to her, though, I do want to let you know that is still looking into the Ustick route and the feasibility of that. It is going to be a stimulus project request through VRT. They are going to file grant application for stimulus and so I thought I would let you know that things are progressing with it. We are looking for other funding mechanism. I've also been working with -- with Congressman Minnick's office on potential grants for -- to fund this route. So, it's not going away, but I will keep you updated on that, if we -- if we do -- if it does look like a possibility, it just won't be on the ground and you're hearing about it from riders, but we will -- I'll update you at those -- at your monthly workshops, as appropriate. I think that's it for my portion of the presentation. Do you have any questions of me thus far? De Weerd: Just clarification. So, this isn't an enhancement on the Ustick, it's changed to something else? Hood: Correct. We are modifying that -- Madam Mayor, Members of the Council, we are modifying the request for the new Ustick route, again, to fund an additional a.m. and p.m. on the route 40, which is the one that stops at Gold's and Margaret can have a better detail of where that -- but, basically, the 1-84 corridor, starting in Nampa and going down to Boise. De Weerd: Okay. Hood: I have a handout for you and with that I will tum it over to Margaret. Havey: Thank you, Caleb. Hi, I'm Margaret Havey. Thanks for having me today, Mayor and Council. I will let Caleb hand out my displays. So, the route 40 express starts in Nampa, makes a few stops -- stops in -- it's pretty much only stop in western Ada County is in Meridian and, then, it goes straight to downtown Boise. It's our most successful in our county routes right now, because it makes so few stops and it just zips right into downtown you can see on the handout I put a little chart of the ridership trend on that route. You can see that it kept pace with all inter -county routes about -- they grew all about the same rate. With the bump that we saw last September in the spiking gas prices, I think we really missed an opportunity there, because when we analyzed our local ridership we saw that we had gained riders in that period and kept them. Our inter -county routes people went back to their cars and part of that reason is we don't have capacity on our inter -county routes. During the gas price hike we had standing room only on all of our inter -county routes. People were turned away and so they are not likely to come back to that transit and so we really missed an opportunity there. As you can see, I also included the average passenger boarding by stops for this route and you can see that the Meridian stop is the most successful stop on this route. So, we Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 43 of 91 have done some travel demand modeling with the great help of COMPASS. In their travel demand model we asked them to see what the travel demand would be if we added additional trips and, basically, they came back to us and said that there is capacity for transit ridership in their model for up to 5,000 transit trips a day, which would be incredible, we just don't have the buses for that. So, what we wanted to do was add two additional trips onto the route 40, but since this is a partnership we went and we talked with Nampa, Ada County, and Canyon county and the city of Boise to see, you know, what would be possible in their budgets to do. After that first round of talks we decided that it would be most feasible to just ask for one additional a.m. and one additional p.m. round trip, especially at this time, and if you look on the back you can see the breakout of funding and how those costs are shared with other municipalities. So, Meridian would be asked to contribute about 15,000 dollars out of the local match and that would get us, like I said, two additional round trips a day, five days a week, all year long. And with that I'd love to answer any of your questions if you have them. De Weerd: Council, questions? Rountree: Madam Mayor, just what's the matching ratio? Havey: The match ratio for operating? It's 20 percent local, 80 percent federal. De Weerd: Okay. I guess what I'm not clear on this is -- oh, there is the back. Rountree: There is the back. De Weerd: There is the back. Okay. Any other questions from Council? Rountree: I have none. Havey: Thank you, Mayor and Council. De Weerd: Okay. Anything further on Other Government? Stacy, did you need to point anything out in -- under this category? Kilchenmann: I think we have covered everything. We have the line item for the seniors in there, I believe, the same 30,000 that we have been doing every year. De Weerd: Yes. And, Council, you should also have in the materials in front of you what the breakdown of that request is. Again, their transportation program is the larger bulk of that at 18,000 and the rest are several different capital improvement request specifics. So, if there is no further questions in this area, we will go ahead and move on to our fire department. Chief Anderson. You can smile. Anderson: I just hit the little arrow thing to make it go forward and backwards? Cool. All right. I have got to run the AV stuff up here. Well, good morning. Thank you for the Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 44 of 91 opportunity to come before you once again to talk about our budget. I'm very pleased to see how smooth the budget process is working this year. I know there is three of you sitting up there that can remember a few years ago when it wasn't quite so smooth of a process and I think we owe a big thanks to our Finance Department and their staff for the amount of work that they put into the budget prior to it getting here and also the Mayor's office, because it's very nice to have all the base budgets and have the enhancements separated out in a standardized format and those kind of things, so that you can look at it and look at the budget quite -- quite simply. I can also tell you that in the Fire Department we also do a very similar process when we put our budget together. First, the budget requests come in from all of the members of the Fire Department and we look at those requests and, then, they are prioritized within the Fire Department. Some of them are scratched because of various reasons and we try to bring to you -- you folks a budget request and enhancements that are -- that are critical for the operation of our department and I really feel in all the years that I have done this that this budget is one of the most critical things that happens with a department, because the budget is what allows us to be successful and what allows us to bring forward new programs and new services and enhance what we do for our citizens. So, to me this is a critical part of our department and so with that I will move into our budget presentation. First of all, you guys saw this a couple months ago when we did the strategic planning with the Fire Department some of this, so I won't spend a lot of time dwelling on this, just to refresh your memory a little bit about the department. Here is some of the statistics as far as the number of full-time firefighters we have. We have been working over the last few years to increase our part-time on-call firefighters. For me that's a term I have also referred to as volunteer firemen. The new terminology is part-time on-call, because they do get paid when they go on call. But our goal is -- and bring on another group again this fall and we hope to have somewhere between 18 and 20 part-time on-call firefighters, but that we maintain on a continual basis in our program. De Weerd: Hey, Ron, excuse me, but can you tell us what those part-time on-call firefighters mean to the department. Anderson: Yeah. Those folks are required to work two 12 hour shifts per month and so Meridian operates with a three person engine companies. A lot of the departments around the country use four person engine companies. So, having these part-time on- call staff actually helps to augment our full-time staff and they are not allowed to work those shifts until they have been through all the NFPA standards, the National Fire Protection Association, for firefighter one and so they actually act as another firefighter on that engine company when they are working on those 12 hour shifts. And so it really is a cost savings to the City of Meridian when we are -- when we got those guys there working and quite often we will have two or three of those working on different engine companies throughout the city each day. That -- staff also helps us with some of those things like Jeff runs into the problems with the parade and some of those kind of things, because we ask those folks to staff the engines and those kind of things during those kind special events. So, there is quite a benefit. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 45 of 91 De Weerd: Thank you. I thought that was worth noting. Anderson: Thank you. We do have seven administrative personnel. The three deputy chiefs. We have a fire inspector, as well as two administrative professionals within the department and myself. Five fire stations, a fire safety center, and a training tower now. Meridian Fire Department also has grown considerably and is not the little small town fire department that we used to be and as a result of that, having five fire stations, we also have five front-line fire engines. We now have an aerial truck. We operate with two reserve engines, two brush squads that are four wheel drives, a water tender, an air supply truck, a utility pickup, and we have six staff vehicles and so that's almost a full- time job in itself just keeping all those vehicles operating on a daily basis, because if you have ever worked around fire trucks, they have a lot of mechanical things that can go wrong with them. Zaremba: Madam Mayor? De Weerd: Yes, Mr. Zaremba. Zaremba: I would add to that list the new joint fire and police command trailer. Anderson: Yes. Yes. You will see a picture of that here in a couple slides. Zaremba: Okay. Anderson: Just a few of the statistics. Last year in '08 we responded to a little over 4,200 calls. We completed almost 1,500 business inspections throughout our community and made over 50,000 public education contacts, as well as gave 182 station tours. We also do car seat inspections. We have a number of trained technicians that can do that. And about 23 juvenile fire setting candidates were screened and, then, we do a number of citizen ride alongs with our fire crews. Originally we -- in the past we have always done accomplishments for the departments, but understand we are going to skip right to new enhancements, so there is the command trailer that you were talking about, Councilman Zaremba. We list that in our -- one of our accomplishments for 2008, along with the police department. Bird: It's a good looking recruit. De Weerd: I just can't believe you. Anderson: Which one do you think is good looking? De Weerd: One of these guys. Bird: Katie. No. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 46 of 91 Anderson: Well, Katie's not -- Katie's not in this one. This was last year's. Our '09 enhancements, the things that we are working on in this budget, the aerial truck has been delivered already. You guys know that. And that was a substantial savings to the taxpayers. We have also increased our part-time specialist to full time and there is a remodel currently in progress at station one, as well as some staff scheduling software, which we have all enhancements from our'09. In 2010 our budget enhancements, as I told you we started off with a list of about 21 enhancements that came from the members of the Fire Department, the staff, and we have paired those 21 enhancement requests down to three enhancement requests, that being a training instructor position, three firefighter paramedic positions, and a cardiac monitor. So, first I'll talk a little bit about the training instructor position. I was talking to Deputy Chief Johnson earlier today, he was hired in 2001 as a training officer for Meridian Fire Department. At that time Meridian had 18 full-time firefighters and about 20 volunteers, so a total of about 38 personnel. His focus was training. Shortly after he got there he was informed that the training position was also going to handle all the duties and responsibilities associated with daily operations of the department, so that meant equipment purchases, vehicle maintenance, attending 911 communication meetings, staff scheduling, all those types of things. So, his job description changed drastically shortly after arriving. That was in the year 2001. Look at it today, we now have 54 full-time firefighters, with the reserve personnel, the office staff, we have 76 personnel and his job description really hasn't changed too much. And so it's really a position that the duties and responsibilities have outgrown the position and it's something that we feel like this position needs to be split into two positions. We need to have a full-time training instructor. In fact, in the citywide survey that was sent out earlier this year that was probably one of the overwhelming comments was that we needed more consistency in our training, we needed stability there and we needed somebody who could focus their entire efforts on training. So, we are asking for that training officer position. It was asked for in last year's budget and was not -- you guys were not able to fund that last year, so we are back again this year asking to fund that position again. That position also is the position that's responsible for doing all the training for the part-time on-call folks, as well as any of the recruit academies that the department puts on and when a recruit academy starts, that's a 16 week commitment that virtually all other training in the department shuts down while that training instructor focuses their time on that 16 week academy. So, when you do a couple of those a year you can see that takes the training instructor away from the other crews that also need to continue their training. So, the other thing that we would like to do that is very common in the fire service is that training instructor position also, then, becomes somebody who, when you have a working structure fire, they respond to the structure fire and they can serve as a designated safety officer on that scene and that gives them a chance to observe first-hand if there is any training issues that the firefighters need to have work on and stuff like that. So, it not only will help in the training, but it will also promote a safer work environment when we are on emergency scenes. The three firefighter paramedic positions that we are requesting, this will go to help maintain minimum staffing levels without increasing our overtime costs substantially. It will also enhance the department's ability to provide a safer community and help us better meet the demands of the community and it increases the fire department's overall operation capabilities and I will talk a little bit more about that Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 47 of 91 here in a minute. Recently we finished up with the Idaho Survey and Rating Bureau and they just re -rated the City of Meridian and we went from a class four to a class three. This slide that I'm showing you right now is a breakdown of that rating bureau's assessment and you will notice they have a column for maximum points that could be received, then, they have the second column is for the points that Meridian received and, then, the percentage of the max. So, when it comes to engine companies, that's how many engine companies we have operating on a daily basis. Possible ten points. We received 9.76 or 98 percent of that. That's pretty respectable. Reserve pumpers, there is one point available, we received .98 percent. So, again, 98 percent. The pump capacity of our engines, we got a hundred percent. The ladder service, that new aerial truck that we purchased, out of a possible five points we get one and a half points and the reason is is because we are cross -staffing that aerial truck, depending on the type of call that comes in, if it's a structure fire call, the guys get on the aerial truck and go. If it's a medical or a car wreck or fuel spill or something like that, they get on an engine and go. And so we only get half credit for -- for that aerial truck as a full aerial truck and so that's -- that's why we only get 30 percent of the points available. As far as a reserve aerial, we carry some of the equipment that's required of an aerial truck on some of the other engines and that's why we get the .14, only 14 percent. The distribution is how well our crews are distributed throughout our fire districts, so that we can keep response times to a minimum. But the last two items are the ones that I wanted to really point out to you. Out of the total of 50 points that's available to the fire department, 15 of those points come in the area of company personnel and that's how many firefighters you have on duty each day and so out of a total of 15 points, Meridian is only getting 5.65 points or 38 percent of that. The two areas -- or the three areas where you can get the most points in that is -- in the rating is your engine companies, your company personnel, and your training and both in the company personnel and the training the fire department is considerably low, the 38 percent and the 71 percent. So, these two enhancements that I just talked to you about, this is the reason why those enhancements have a high priority for the fire department, because it will help us to bring the department up to current standards. It ultimately helps to lower the city's rating, which can equate to lower insurance premiums for our citizens. So, as we grow and as our population increases, we, again, need to continue to increase the number of staff, so that we have adequate firefighters for the citizens that are out there. This right here shows you our daily staffing as it currently is at five different fire stations. At station one, which is where the aerial truck and an engine is housed, we also house our brush squad there, we also house our water tender for rural water supplies, as well as a couple of other utility vehicles there. Due to the current contract we must now keep four firefighters there on duty each day to operate that aerial truck. That means a captain, a driver, a firefighter and a medic. Each of the outlying stations only have three personnel assigned. Now, they do have the part-time folks that augment that when they are available and when they are pulling shifts, but what that means is right now currently we have 18 firefighters that are assigned to a shift. Minimum staffing is 16. So, we have two extra people. So, you will see in the bottom of the first column under station one we have somebody called a floater captain and a floater driver. So, when we have folks that are on vacation or call in stick, this floater captain or floater driver, they move to whatever station is needed, where ever that vacancy is created. Now, we also have Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 48 of 91 issues that sometimes we may have two captains gone and in that case we are going to have to bring in another captain in and pay overtime, if we have more than one captain gone, but it's nice to have that floater crew. The other thing that happens is because there is both an engine and a ladder at Station One, if we have three extra personnel there we could actually operate both the engine and the ladder. Now, that doesn't happen very often, but there are times of the year, typically during the winter months when people don't take a lot of vacation time, where that does happen. When that happens, we will be able to operate both an engine and a ladder without having the crew jump back and forth. Great example was yesterday, we got hit with several calls all at one time. Apartment fire or grass fire and an automatic alarm going off at the Majestic Theater over here on Overland Road. At that point Meridian had no more resources to even send to the Majestic Theater, so it was Boise fire crews that were responding to that alarm for us. In those type of cases we would have had an engine and a truck company, we would have had at least a Meridian resource that was able to respond to those. By hiring these three additional firefighter paramedics, it gives us that third person on the crew, it also helps us so that every station would have a paramedic on duty each day, even when we have multiple paramedics that might be off on vacation or sick or those types of things and it helps to maintain and reduce that -- that overtime. And I would like to clear up, I guess, at this point one misunderstanding from last year. The question was asked can we bring on an aerial truck without the additional staffing and my answer was yes to that and what I meant by that is the clarification is that we had already cleared the hurdle with the union that we didn't have to hire 12 new people to staff that aerial truck in addition to the engines and have two different crews there. They were comfortable with we either operate an engine or an aerial out of that and we could take the same crew off of the engines and move it over to the aerial. And so that's -- the clarification that I want to make from last year, that we could move those folks over there. The additional firefighter paramedic that we are asking for this year, again, is an attempt to maintain and keep overtime to a minimum, but it also helps us greatly with operational issues and keeping coverage, whether it's having a paramedic on duty every day or having the ability to operate additional equipment out of station one, such as a water tender or a brush rig or those types of things. And our third enhancement request is a cardiac monitor and currently each of the front line engines have a cardiac monitor, but what we don't have is an extra cardiac monitor for when one of those reserve engines is put into service or when these have to be taken down for routine service and calibration. Now, with paramedics on our fire engines this is a critical piece of equipment and so when you don't have your cardiac monitor, it's -- you're taking one of the critical instruments that the paramedics need to do their job away from them and so this is something that it's about a 20,000 dollar item, but we really need to purchase one of those to have it available. This is a quick budget comparison with our 2010 budget request, as opposed to our 2009 budget, and so these are -- these are the breakdowns. One difference I can -- I can tell you specifically in here, the total dollar amount in the '09 budget was 8.3 million, the 2010 is at 7.9 million. There was -- there is an additional class that's not listed under 2010 that is a transfer that goes from impact fees into the General Fund and that was because the aerial truck that we purchased was 31 percent eligible and so we are making that payment back to the General Fund out of the impact fees this year. So, it's not listed Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 49 of 91 separately under the bulleted points, but it is included in that 7.9 million dollar figure there. And, then, last year there was a payment for 450,000 that was included under the operating expenses that went to the rural district to reimburse them for the 31 percent of the drill tower. But the bottom line is that our 2010 budget request, with enhancements, is 7.9, as compared to the 8.3 for last year. Future challenges. Obviously, increases in population as Meridian continues to grow, it will stretch resources and increase response times, so we were just looking at a major project being proposed the other day out in the Ten Mile area, as that Ten Mile area takes off and as those projects are built, it will be critical that we get a future fire station out there within the next two to three years time frame, probably, to meet the needs out there. Also, multiple incidents occurring at the same time. As I told you yesterday, you know, we don't know when calls are going to hit and what type, but three of them hit at almost the same time yesterday and resources were stretched considerably. Unfortunately, there was nothing else major going on that other departments were able to come in and help us out. But having some contingency and some back up is critical for future planning. The changing character of our community, more and more multi -story commercial buildings are being proposed as part that Ten Mile project that we were talking about the other day, well, my vision ten years ago is that Meridian would probably have one aerial truck in the downtown area. Well, when we start putting buildings that are -- you know, they were talking the other day about three buildings in the neighborhood of eight stories in height, those kind of things are going to change the character and so it changed the capital outlay that would be needed for the fire department, too. Transportation. We all know that transportation is a problem here in the area and it's going to take awhile for our transportation system to catch up with the funding that it needs, but that also causes traffic delays for emergency responders. An incident that happened last week was at the Black Cat overpass and the interstate. Well, the first call -- 911 call that came in were from people on the interstate, so the first fire engine got dispatched down the interstate. Well, he couldn't access the call from the interstate. So, a second engine had to be dispatched. The first engine, because of the traffic congestion, took them over 45 minutes to get to Nampa and back to Meridian before they could be able to respond to other calls. Mass transit. As we look more and more into that, that will create additional issues that the emergency services will have to do deal with and, then, capital funding, it's a major issue. I have been working a lot recently with consultants that the city has hired on the capital improvement plan and I think you guys will be quite amazed when you see that about the capital needs over the next ten years for fire alone, let alone for the city and replacing apparatus. And with that I would stand for any burning questions that you may have. De Weerd: You and Bill Nary worked together on the Powerpoints; right? Any questions from Council? Bird: I have none. Rountree: I don't have any right now. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 50 of 91 De Weerd: Okay. I know Stacy and I discussed the capital improvement plan and the percentage that the city's commitment is on that and so we are going to work on what we need to do in setting aside the city's portion to make sure that -- that we are not caught unaware and we continue to work towards the commitment we have made to the capital improvement plan. So, that helps, too, with Ron's point on -- on his own how to keep up with not only our commitment to working the plans and for expansion of our system, and maintaining service, but also in our commitment to the impact fees and the city's portion of it. Okay. If there is no questions, thank you, chief. And your support team back there. Anderson: Thank you. De Weerd: We appreciate it. Okay. Next up is our water department. Council, do you want to take a five minute break? This is a little bit longer presentation. I know it's right before lunch. Or do you want to just delve right into it? Okay. Very good. Bary: Madam Mayor, Mr. President, Members of the Council, thank you for the opportunity for me to present one of the several divisions of Public Works' budget. I'd like to go ahead and first begin by giving a little bit of background as it relates comparatively to our budgets in years past. The graph on the upper left you will notice is our enhancement history over time and it is reflective in part of the growth we have experienced in the last decade. But what you will notice is -- regarding the trend, particularly in the last three years, comparing 2008 to 2009, of course, 2010 proposed budget, is that we are continuing the decline in requests regarding new enhancements. Our decrease this year from last year's budget is on the order of 9.4 percent or about 850,000 dollars. That's also compared with between fiscal year 2008 and 2009 of a decrease of about 3.2 million dollars or 26 percent between those two years. So, we are modifying and adjusting in sequence with what's going on in the economy as well. The graph on the lower right shows personnel and operating expenses comparing the years -- the fiscal years 2009 to 2010 and what you can see, essentially, in this is that we have some slight increases and some slight decreases. Public Works' operational and personnel expenses are increasing by about 1.3 percent, while water's is decreasing by about 4.2 percent. Wastewater's is decreasing by about 7.2 percent. MUBS is increasing by about 8.5 percent, which seems high, but, really, isn't, it's just compared to the fact that we have a fairly low component of the budget. And, then, building, which is not part of the Enterprise Fund and has already been mentioned previously in today's discussion, has got a decline of around 48 percent. For the entire department our operating and personnel expenses in comparison to this fiscal year '09 to the proposed budget shows a net reduction of about 9.5 percent and we are pretty proud of that. I wanted to share also with you briefly our approach department -wide in putting together our budget, as well as our enhancements for this year. You are familiar with the mission of Public Works Department, which is to anticipate, to plan, and also to provide exemplary public services and facilities that support the needs of our growing community and an efficient customer focused and financially responsible manner. And this was one of the guiding lights for us in putting our budget together. But we have many other principals that we incorporated into the generation of our budget for this Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 51 of 91 year. Across the department these are the following principals presented to you regarding how we approach the composition of our budget. First and foremost we wanted to insure that current regulatory and safety requirements would be met. That product and service quality, service areas, and delivery levels would be preserved. That our infrastructure would be adequately protected and maintained. That we would improve staff training and utilization of technological resources across the board in the department. We also want to make sure that any expansion of assets or infrastructure is both measured and strategic and as you are well familiar with, we are setting aside now accrued depreciation reserve, as well as operational reserves moving forward. We are also utilizing the just -in -time capital financing approach, which saves us money year over year on projects that span multiple fiscal years. We have also strived to reduce cost when and where possible in every sector of the department and maximize our operational efficiencies to cut down on unnecessary cost expenses. We are asking only for what is needed and trying to do our best to conserve resources. That is still a journey for us in both areas and we can continue to look for great progress in both. And, lastly, I would like to empower our budget stewards in the department. We have a large department and our department covers a large variety of different services and activities and it takes a great number of well trained and dedicated staff members to pull it all together and while I get the privilege to stand in front of you and take a lot of that credit, it really is the support and backing of my staff each and every day that makes what we do possible in this community. One of the things I have been trying to do that I think you're familiar with is to empower the people in my department and one of -- what you will see today is an approach that we'd like to continue to employ, which is to hand over the keys, so to speak, particularly in the areas to the staff that are responsible for administering those areas of the budget and so I call, them, essentially, budget stewards of the department and so you will hear from them, their requests and concerns and issues associated with their enhancements and so we are going to tag team this and you will see a lot of staff come up and do this. I feel this is important for a number of reasons. It's a growth opportunity for them and an opportunity for you to see who really is behind the good works that we do each and every day in this department. So, hopefully, this will be lively for you and interesting and give you that perspective. Without further adieu we will go ahead and get started with the water budget, particularly the enhancements and Rich Dees, our operations manager. Rick Clinton, our water superintendent, and also Kyle Radek, our assistant city engineer for all water capital projects, are here to speak to you about the enhancements for the water division. Thank you for your time and I will stand for any questions at the end. Dees: Madam Mayor, Members of the Council, thank you for the opportunity to come before you. I think I click that button to make it go to the next slide. This is our prioritization approach that we use to come up with a budget, both in water and wastewater. In water you will see a little bit of a difference. Mainly this is the status quo. Keep things rolling as it's supposed to be rolling to make sure we provide the services that need to be provided. We want to make sure the customers -- we know the customers want to experience the same service that they are getting right now. We want to keep making sure that happens. Our customers want to be assured that we are appropriately planning for the future. You will see some enhancements that are -- that Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 52 of 91 make provisions for that. Fire protection services the chief talked about is very high in our mind. We want to continue to support the current high level that it is right now and, finally, water quality programs will continue to be provided, so that we can assure continued high qualities of service. Prioritization was based on public safety, employee safety, continued high quality water quality and a combination for system growth. To that end this is what you're going to hear about in the water division. These are the enhancements. There is a couple missing, because the numbers were pulled out ahead of time, but they weren't reordered, so number eight and number 11 are gone. We will have the radio reprogram. We will talk about that. Ground water master plan. Ground reservoir. All those things. And, finally, contract labor, which will be the last one. First up is the radio reprogram and that's -- Rick Clinton is going to talk about that. Clinton: Madam Mayor, Members of the Council, I appreciate the opportunity to present the radio read program. We have about 16,000 accounts currently that we have converted to the technology of radio read. Roughly 9,000 accounts remaining that we need to get converted over to radio read. One of the things that I think is important to note in this particular enhancement today is that just about half of what we are asking for in this enhancement is for radio read conversions. The rest of it is for meter registered or change out and for changing out old water meters, both of which are vital to maintaining billing accuracy. So, I think it's important to the funding of the Enterprise Fund to have accurate metering. I will turn the podium over to Kyle Radek. Radek: Madam Mayor, Members of the Council, enhancement number two, the ground water master plan probably a more correct title would be ground water master planning. We didn't want to vary -- vary from what we had in the actual enhancement. But this is ongoing work that is absolutely necessary to insure the viability of our system over time. Consultant services are needed to develop knowledge of the underground aquifer system that provides our water supply and we need to apply that knowledge. This work is ongoing and includes aquifer monitoring and testing, water rights, planning and transfers, engagement of regulatory agencies and regulatory compliance and our goals here are to adequate represent long range water supply needs and source characteristics to regulators through collected data and science and to enhance and protect our water quality and quantity to insure the long term viability of our water utility. Enhancement number three is ground reservoir and the enhancement this year is proposed enhancement of 550,000 dollars of a 3.7 million dollar project. The water master plan has identified the need for an additional water storage to supply peak and emergency demands. The Department of Environmental Quality has communicated their expectation that we implement the water master plan and build the reservoir and this enhancement provides for the financing to start design and land acquisition for this project and this is to meet our goal of providing public facilities that support the needs of our growing community. Enhancement number four is water line extension. The proposed enhancement is 205,000 dollars. Water line projects must be designed and built in conjunction with ACHD and ITD road construction projects, which -- where they are needed to maintain or improve service levels to current and future customers. Pipe upgrades can improve fire projection capability, which, as we have said a few times, is very important to us and the fire department. Our goal is to design and construct Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 53 of 91 improvements to our existing water distribution system during road construction in order to be cost effective. Rountree: Madam Mayor? De Weerd: Yes, Mr. Rountree. Rountree: And, Kyle, this might not be the place for the question, but as we get into reclaimed water, is that going to be on the wastewater side function still or are we potentially getting into a situation where we are going to want to meter that and charge for it at some point in time and it will go to the water side? Radek: Madam Mayor, Mr. President, Members of the Council, I'm totally unprepared to answer that question and it's a good question and it's something we definitely have to consider. We have been discussing how that utility will work. But I see Tom coming forward, he maybe has some -- some thoughts on that. Barry: Thank you, Kyle. Madam Mayor, Mr. President, I appreciate the question. We currently are planning all reclaimed water facilities and services to be financed out of the wastewater fund and what we -- what we know, however, is that reclaimed water services have a great benefit to wastewater, because they allow for a different approach with regard to meeting regulatory requirements and reducing nutrients and those kinds of things and keeping that stuff out of the creek. But there is also another benefit to reclaimed water and that's benefiting the water division side and that is a reduction in domestic water supply for utilization of irrigation. So, we ultimately see as we craft our reclaimed water program, that while it may first initially be financed out of wastewater, because that seems to be the biggest benefit now, there is likely a period where it will be subsidized in part by both wastewater, as well as water, because it does have an impact in reducing domestic water supply. I will also add -- I have had some conversations with Finance staff over the possibility of General Fund contributions to the building of our reclaimed water facilities and infrastructure. There is an interesting philosophy behind that and we are not prepared to discuss that at this time, but as we grow the program we will certainly keep you informed of those issues and concerns and opportunities and address them more fully at a later date. Rountree: Thank you. Radek: Madam Mayor, Members of the Council, enhancement number five is well rehabilitation. We are asking for 150,000 and one of the things I think we should point out is that we actually asked for this as a reoccurring annual expenditure last year and we have mutually agreed with Finance that we should bring this back on an annual basis, rather than a reoccurring request. So, what we have is really important to maintaining the productivity of a well. We found after about ten years that we start seeing declining productivity. We also can start seeing deterioration of the well and it's just money well spent to go in and correct problems underground before we lose the well entirely. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 54 of 91 Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: How many wells do we have? Radek: I believe we have around 18 on line right now. Zaremba: Thank you. De Weerd: We have 18 on line. Do we have any that are not? I think we have a couple. Radek: We do. We pulled well ten off line probably about a year ago or less than a year ago permanently due to high uranium. Well 23 we are kind of going back and forth on that currently. If it was a temporary seasonal well, we thought we had the clearance to get it back up to a full time status, but we have found that maybe that's not in our best interest. So, we may soon be doing something different with well 23 and, again, it's a uranium issue with well 23. MCL. And the ultimate question is do we want to be put in a position where we have got to -- to notify in a CPR or otherwise that we are exceeding the MCL by putting that into the distribution system and I would prefer not to have to do that. De Weerd: I think that would be our preference, too. Radek: Enhancement number six is water main replacement, the proposed FY -10 enhancement is 150,000 dollars for the ongoing program at a cost of 750,000 dollars over five years. Again, this is one that we asked for to be a programmatic cost last year and we have agreed to bring that back. Water mains in the older sections of town that are not within the urban renewal area may be undersized, composed of material that does not meet current standards or approaching the end of its service life and they must be systematically replaced. Our goal is to anticipate, plan, and provide public facilities that support the needs of our community, additionally replacing old mains before they rupture reduces the risk of an incident that could cause property damage. Enhancement number seven is the downtown urban renewal, very similar to the previous one. The FY -10 enhancement proposed is 200,000 dollars, with a five year programmatic cost of one million. And, again, water mains -- specifically in the urban renewal area may be undersized, composed of material that does not meet current standards or approaching the end of service life and it must be systematically replaced and the goal is to support the urban renewal efforts by replacing and upsizing old water mains to accommodate larger buildings associated with downtown redevelopment. Dees: This next one is not for software licenses, it's for the software support agreement. Hansen, like many other software programs the city owns, needs an annual software support agreement to keep it viable and keep it alive and keep it -- keep it Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 55 of 91 working. This is 7,000 dollars, which will continue on to -- to buy those -- that software support agreement. You will see a similar enhancement in wastewater due to the exact same thing. The reason it's here is because we bought new licenses for Hansen in water and we bought them in wastewater and this is the support agreements to support them. Radek: Enhancement number ten is well 29 construction. The proposed enhancement is 90,000 dollars. Total project cost is 750,000 dollars and it is for preliminary engineering work, utilizing just -in -time financing for this portion of well 29 construction. The goal is to provide for a source of water supply to replace lost supply associated with abandoned wells and declining capacity of existing well. Clinton: Our final enhancement today for the water division is contract labor and this account was set up for the purpose of reimbursing back flow testers for the program that we brought to Council in May of '05. We have been very successful in this program to the point that we have now come close to exceeding what we anticipated we would be spending on this and so we are asking for additional money to continue the program. Rich wants to speak a little about this. Dees: This one is -- is -- it's a good program. It a very innovative program. It's the only one like it in the state. I don't think anybody else is doing it maybe in the United States. I'm not sure. We pay contractors, essentially, to go out and repair and test backflow preventors in people's homes. It's a great program and it is -- as Rick said, paying us a lot of benefits. It's very innovative. However, one of the things we want to do in the next few months is to make sure we are getting the right kind of bang for our buck. It is costing us money. We want to make sure that we are putting it in the right spot and we want to make sure we are being equitable on how we -- how we dispense that. So, again, in the next few months we are going to take some time and come back to you and explain to you how this program is being applied equitably across the entire 25 plus thousand customers that we have in the city. Rountree: Madam Mayor? De Weerd: Yes. Rountree: Rich, does that include looking at the fee structure? Dees: Yes. Exactly. Rountree: Okay. Dees: The fee structure and how we are applying it. Exactly. De Weerd: I would also like to considered in there, because the back flow program is targeted specifically to customers who have access to irrigation water; correct? Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 56 of 91 Dees: No. Kind of the other way around. If you have access to irrigation water you do not have a back flow preventer making a cross -connection. This is for the folks who do not have irrigation water and are using their domestic water for sprinkling. Yes. Domestic water for sprinkling. So, it's kind of the -- kind of the other way around. If we find people that are doing exactly what you're saying, that's an illegal connection and we need to get to that right away. Eagle is a great example of what can happen if -- if you have a back flow preventer that's irrigation water and we don't want to have that happen here in Meridian. De Weerd: Okay. It is a timely discussion. I do think as customers come in with their concerns and, hopefully, a program that uses reclaimed water in some of these areas to relieve the use of city water on -- for irrigation, they need to know that this is also a benefit to them, that -- and I don't think we communicate that. They have come during these rate hikes to talk about, you know, what -- what about us and this is a program that is all about them and we need to be better at sharing that we do recognize that we are trying to help offset their costs, but it needs to be part of that dialogue. Dees: Madam Mayor, Members of the Council, we agree and it's one of the reasons why we want to come back to you and explain what we found after we kind of dissect this thing a little bit and see what's under the hood. Rountree: Madam Mayor, just another thought and they are probably already thinking about it, because they are usually way of ahead of me, but if we are spending this kind of money on prevention, what if we looked at over time accruing that kind of money and putting on some pressurized irrigation system in some spots in the city and getting them off of this program? Dees: President Rountree, are you talking about taking people off of domestic water and putting them on pressurized irrigation? Rountree: Pressurized irrigation. Dees: I think that's what Tom was speaking to and, Tom, if you're back there or someplace -- yeah. That's what Tom was speaking to. We are right now working on a citywide permit for pressurized irrigation and it certainly would be one of our goals is to get off pressurized -- not pressurized irrigation, but off of domestic water -- Rountree: Domestic water. Dees: -- and go into a reclaimed water -- De Weerd: Which is extensive. Dees: Yes, ma'am. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 57 of 91 De Weerd: Just one more question on this. Do you know for the people that are certified to do the back flow test program, do we do a training annually before -- in updating the list? What -- what do we do? Dees: Madam Mayor, Members of the Council, we have 33 back fill preventer companies, if you will, on a list and what happens is every year we send out letters to all those who we have in our database saying we got to get your back flows tested and we send them that list and they get to choose which one of those 33 they want to come out to their house and get their system tested. As far as training is concerned, they are certified through the Idaho Bureau of Occupational Licenses. So, all of them have to have that license before they can even do it. We don't put on any training for them, but they have to subscribe to that -- those standards, otherwise, they couldn't even be in business to do back flow testing at all. De Weerd: Well, as we bring information back to the Council I would like consideration of -- to be on that list you have to go through some kind of training with the state -- or with -- the state of Meridian. With the City of Meridian. So, that we can use that opportunity to talk about potential abuses, situations that are very unique, maybe, to our own community. They may be licensed, but we want to have that ability to touch them, make sure our expectations of being on the list are met and it gives us an opportunity to maybe address some of the situations we have that occur. Dees: Yes, ma'am. De Weerd: Okay. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Just a follow up on a comment that was made that the reclaimed water system and other things may be expensive. As the population continues to grow, not only of Meridian, but the state, the country, and the world, water becomes more and more precious as a resource and usable water -- there are other places that for years have been wishing they had a dual system like we do and talking about the triple system, I'm glad we are thinking ahead that far. There will come a time where we can't get all of the drinking water that we need to get directly from either rain or aquifers and I appreciate that we are looking out in front and figuring out how we are going to do it and it would be too expensive not to do it. Dees: Councilman, we agree, and that's, obviously, the reason we are pursuing it. And now do you have any questions? De Weerd: Any questions? Okay. I guess my question to you is do you want a break for lunch right now or -- yes. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 58 of 91 Dees: The next group I think is Public Works after this, so, Tom, your preference to break for lunch? Rountree: They probably need some nourishment. Dees: They look kind of peaked out there. Rountree: Yes, they do. De Weerd: And I know that we have a couple of Council Members who have -- Bird: I won't be back until 1:30. Zaremba: Well, then, I would propose that after lunch we have a short nap. De Weerd: No napping. We have to reconvene at 1:00. Is that -- Bird: I will try to get back, but -- go ahead. You will have a quorum, won't you? Rountree: Let's try 1:15. That way we are sure we will have a quorum. De Weerd: Okay. Okay. So, we will break for lunch, then. Thank you. (Recess.) De Weerd: Okay. I will go ahead and call this back to order, this meeting, and invite Tom or his representative forward. Didn't know for sure who you had doing this next one. Barry: Oh, we have quite a few folks who you have still yet to visit with. Thank you, Madam Mayor, Members of the Council. We have two more divisions that we would like to discuss budget enhancements with. Those would be the engineering division up next and, then, lastly, wastewater. Regarding engineering and administration, we have four small enhancements and I have asked for Warren Stewart, our new engineering manager, to come forward and present the first couple of those enhancements and to introduce himself formally to the Council and give a little bit of background as to who he is and what his credentials are, so you know that we are in good hands under his leadership. And, then, after Warren presents his couple, then, Shane Lim, our GIS administrator, will talk about a couple enhancements that he has. So, without further adieu, Mr. Stewart, if you'd like to -- De Weerd: Welcome to our process. Stewart: Thank you very much. Thank you, Tom, for that introduction and, Madam Mayor, Members of the Council, it's good to be with you this afternoon and as Tom indicated, I'd like to give you just kind of a brief personal introduction before I get into my Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 59 of 91 remarks, so you will be a little bit more familiar when you see me what my background is and so forth. I was born and raised in a little community call Lost River, Idaho, in eastern Idaho near the town of Arco and my father was a general contractor and I was raised doing construction. I went to school at Utah State University where I received my degree in civil engineering from there. After graduation I moved here to the Treasure Valley. Since here in the valley I have worked for a couple of different consulting firms and had the opportunity to do a broad spectrum of civil engineering work with those consulting firms. I also worked for about three and a half years with United Water Idaho, which some of you may be familiar with. United Water is a subsidiary of Suez, which is the largest water and wastewater company in the world. And most recently I was the primary owner in a consulting firm which did engineering and surveying in Canyon county and with the economic conditions such they are, my partner and I decided to look for other opportunities and that search led me here to the City of Meridian and I am excited and grateful to be here with you and look forward to this opportunity and working with you and helping to grow the City of Meridian and do some good things. I currently live in Nampa with my wife and four kids. And that said I will move on to the budgetary portion of the -- of my remarks. If I can turn the page. If I can get this to move. The engineering division is committed to the mission and vision of the Public Works Department, which, as you have heard, is tied directly to the mission and vision of the city, which you guys have helped create. Each day the engineering staff strives to provide exemplary service to our internal and external customers, while providing fiscal responsibility. The engineering budget reflects our commitment to providing exemplary service and fiscal responsibility while meeting regulatory requirements. The current market, while challenging, in many ways has provided the city with an opportunity to complete many important capital projects at reduced costs. It also has provided the engineering department with the opportunity to take a close look at the state of our water and sewer infrastructure and to implement ways to better anticipate our future infrastructure needs and provide for the future, as well as current needs of our customers. In order to do that, as Tom has said, we are proposing four engineering related enhancements that total just under 36,000 dollars. I will describe the first two of those and, then, turn over time to Shane Lim to describe the last two as they are directly related to the GIS program of which he is responsible. Enhancement number one is for 30,000 dollars to purchase hydraulic modeling software for our water distribution and sewer collection system. The software that has been collected -- or selected, excuse me, is manufactured by MW Newsoft and is titled Info Water and Info Swin. These products were selected after an evaluation process with several other software programs. The evaluation process looked at such things as price, user friendliness, the initial as well as maintenance calibration efforts, GIS integration, and training cost. Modeling software, in general, is an essential tool in being able to anticipate, plan, and provide exemplary services and facilities that support the needs of our community. It is necessary to determine the impact of new development and it also allows us to make better and more informed decisions regarding infrastructure changes, upgrades, and expansion. I will move onto enhancement number two. Enhancement number two is for 50,000 dollars to cover the continuing cost of our surface water program and there are, essentially, two parts to this program. The first is related to meeting our regulatory requirements associated with EPA's pollutant discharge Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 60 of 91 elimination system. This project will cover the cost of consultant fees, the preparation of storm water pollution prevention plan, inspection of BMT's and documentation of that inspection of -- associated with the installation of city initiated projects. The second part of this program will cover cost associated with meeting FEMA regulations for city initiated projects. This could include permitting costs, consultant fees, hydraulic analyses -- excuse me. I hope that's -- a mispronunciation -- required for letters of map revision and with a Lomar, among other things and I would be happy to answer questions. I think it's -- with your permission I will go ahead and tum the time over to Shane to address his two and, then, once he is done we would stand together for -- for any questions that you might have. So, I will tum the time over to Shane. De Weerd: Thank you, Warren. Lim: Madam Mayor, Members of the Council, good to see you today. I have got two quick enhancements. First enhancement is our GIS service purchase. It's a server to enhance our GIS system, so that we can -- first goal would be to embed it into our Hansen asset software system, so when they are looking at their assets they can visually see them on the map right where they are. It also is a much bigger product than that and it's a lot more options and if we go with the Enterprise software that we picked and the recommendations that you guys are going to get that we talked about earlier in the day, it incorporates directly into that as well, so we don't have to purchase another tool to embed those together. The second enhancement or support enhancement is the -- is to continue purchase of our aerial photography. We go in a joint effort with COMPASS every two and three years to get updated aerial photography, this year being 2010 photography, also ties into the census, so that we can incorporate the demographics data that comes with the census right with aerial photography on the ground. It also adds a few large items -- we don't have photography for right now, such as City Hall, it's currently just a dirt lot, the Locust Grove interchange, any of the construction on Franklin and Eagle Road. Rocky Mountain High, things like that. So, any questions from me or Warren, we are happy to answer them. De Weerd: Council, any questions? Rountree: Madam Mayor? I should know this, but don't. Is that aerial photography is digital? Lim: Yes, it is -- this is -- this would be the first year that it's digital. It's usually film that we convert to digital afterwards, but this year is directly digital. Rountree: Thank you. De Weerd: Okay. Anything -- Zaremba: Madam Mayor? De Weerd: Yes. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 61 of 91 Zaremba: And something I should know as well, but I'm -- just confirm for me, even though it's your department that's going to be subsidizing and using the aerial photography, is that available to Planning and Zoning and Parks and -- Lim: Yeah. We have put -- that's our main base that everybody who uses the GIS gets. Zaremba: Okay. That's what I thought. Lim: When we actually have a stack and it goes back as many years as we have aerial photography that they can look at the different years going back whenever they can to what was there or what's there now. De Weerd: Anything further? Rountree: I have a question for Terry, just to reconfirm what I think I already know, is that all of the enhancements as it relates to the IT environment are consistent with the move towards Enterprise -wide activities, minimizing database requirements and that you actually can support? Paternoster: Madam Mayor, Members of the Council, Council President, yes, all the software packages and enhancements have been discussed with the IT department and we feel confident that these are in alignment with the direction the city's heading. Rountree: Okay. Thank you. De Weerd: Thank you. Okay. Thank you. Bary: With your permission we will move onto wastewater. De Weerd: Uh-huh. Barry: Fantastic. Madam Mayor, Members of the Council, we have before you today also discussion of the wastewater enhancements for the Public Works Department and the wastewater division, as you know, is one of our more costly divisions, because it is one that encompasses a wide variety of both a collection infrastructure and operations and maintenance, as well as treatment of sewage, which is a costly endeavor. It is highly regulated, of course, by the environmental protection agency and state statutes as well and it continues to be one of the areas that we must continue to be diligent about investing in and keeping pace in. So, it's -- with that, that -- you will continue to see now and into the future on the wastewater division budget and enhancements tend to be the most -- the largest of any of the other divisions in Public Works and that is part of the reason for that. We have a number of enhancements for you today. The staff that will be presenting for you these enhancements are Rich Dees, our operations manager, which -- from which you heard from him earlier in the day. Tracy Crane, our co -plant manager of the treatment plant, and also Clint Dolsby, our assistant city Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 62 of 91 engineer and project lead for wastewater capital construction projects. So, with that I will turn it over to the staff and, then, we can stand for questions afterwards. De Weerd: Thank you. Bary: Thank you. Dees: Madam Mayor, Members of the Council, thank you for having us today and this opportunity to, again, come before you with our enhancements. The wastewater group has, similar to the water group, several enhancements and we went through an approach for developing those enhancements and you see them before you. A couple I want to highlight. First of all, we do, indeed, want to continue to meet regulatory requirements as they exist today. That's very important to us and some of the enhancement you will hear about do just that. Along with that we need to prepare for what's coming down the line. We know that our new permit is going to be more stringent and so we have to start getting ready for the new permit. For example, phosphorus is going to be a big issue for us. You will see some of the enhancements to help us get rid -- get ready -- not get rid of it, but get ready for that. You know our treatment plants are complex and they have to be managed in an efficient manner, so you will see some enhancements that are geared toward that complexity and try to help out with that and, finally, you will see the new service units that were created to capitalize on resources. This is the reclaimed -- reclaimed water and so you will see that service unit come more and more to the foreground as we continue on. When we start talking about the -- the prioritization, safety of employees you're going to hear about today also will be emphasized. You're going to hear a couple of times where we are buying equipment to keep our folks safe, especially at the treatment plant. Right now there is no alarm system, so we have to figure out a way to do that and we have talked about that and you will hear the enhancement that will help fix that. Also you will hear about our continued ability to serve customers, meet our regulatory needs and using sustainable resources. This is the enhancement summary. We are missing, again, number 13, which was pulled earlier and -- but the numbering system just continued on. These are fairly -- some of them are reflected in water, so you will see some mirror images of what -- what was reflected in water, so we want to just call your attention to those and you will hear about them as Tracy and Clint go through their presentations. The total enhancement request we are asking for, as Tom says, is a little more expensive. It's 5,674,800 dollars. So, without further adieu, the first person up is Mr. Dolsby. De Weerd: And it is all based on the presentation on if you get the money or not. Dolsby: Yeah. I will keep that in mind. Good afternoon, Madam Mayor, Members of the Council. The first enhancement I'm here to present is the consulting. This is a programmatic enhancement that we are bringing back every year, which is shown at the bottom graft of the enhancement form, enhancements based on just professional services that we need throughout the year for things such as collection system, flow monitoring, security upgrades, and air quality permeating out the plant. Also there is an Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 63 of 91 additional 35,000 enhancement, excuse me, enhancement 150 this year, we put 35,000 in for legal services related to the upcoming MPD permit of the plant that we are expecting to get hopefully sometime this next fiscal year. De Weerd: Really? Dolsby: Yeah. Every year we say that and we hope to get it, especially every year it gets more critical, because of the flow limit we have at the wastewater plant. Next enhancement is for land acquisition. This is a strategic effort we have to acquire properties around the wastewater treatment plant. It will help in several different areas, including to allow us to use some of that land for a reuse, such as maybe we will put a wetland there. It will give us more buffer area around the plant, so it would lessen the chance and potential for odor control complaints. And also give us land for our bio solids composting activities that we would like to do in the next couple years. Third enhancement is for two updates to two plans. First is wastewater facility plan, the other one is a sewer master plan. The wastewater facility plan will capture the optimization effort we have done over the past two years or two and a half years to optimize our existing wastewater treatment plant, get the most capacity out of that we can before we have to build a parallel treatment plant. And the sewer master plan was completed in 2005 and it's due for an update. We need to update it based all the current construction that's gone on, get it to incorporate with the sewer modeling software that Warren had spoken of, and also we are interested in identifying priority areas around the city for development in that plan. So, with that I will tum it over to Tracy for the next enhancement. Crane: Madam Mayor and Mr. President, Members of the Council, thank you for your time today. Enhancement four, the purpose of this enhancement is to set aside funds each year for the maintenance and repair of lift stations and to maintain additional private lift stations as they petition to be transferred to the city. We currently have 12 lift stations and we anticipate the transfer of four more hopefully this year. A comprehensive evaluation was done on all existing lift stations and we found that some of these were in need of some upgrades, some current stations need funding, and some alarm systems need to be fixed and this enhancement would provide funding to make sure that we had the ability to do that. The next enhancement is for sewer line extensions. This is mainly geared towards the projects like -- we are doing a project in coordination with ACHD or ITD and we need to put in utilities. We have identified several of those projects that are upcoming, so for construction funding for some, for design funding for others. Also, there is 56,000 dollars in this enhancement for right of way service line maintenance and repair. About a year ago we were put in charge of the program to maintain service lines in the right of way. So, this is funding to accomplish that as well. Get this -- this next enhancement is for downtown urban renewal. This enhancement is to supplement the fund. It's also a programmatic enhancement, as was the sewer line extension one. It's to supplement the fund for the downtown area revitalization and we are working with MDC on a separate study to identify -- and with Planning Department to identify what the downtown area is projected to look like in the future. This is to help get the infrastructure in place to support the Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 64 of 91 development that's planned for downtown. Enhancement seven. The finances requested in this enhancement will be used to repair the collection system faults discovered during our inspection and cleaning program. The graph on the bottom of the slide there shows monthly average flows from the treatment plant and if you will notice that the flows are low in the early spring, they steadily increase throughout the summer, they peak in early fall and, then, drop back down again. The majority of that flow coincides with irrigation season as the canals fill in the valley, the ground water rises and it infiltrates into our system. The funds asked for in this enhancement are to repair these leaks and recover the lost treatment capacity. Every gallon that enters our collection system this way flows into the plant and consumes a gallon of capacity. As you know, we have a federally mandated seven MDB limit that we are allowed to discharge of our facility regardless of the fact that we are capable of treating much more and this enhance represents an important strategy for helping us stay in compliance with this outdated limit. Enhancement eight. This enhancement provides our laboratory with a new glassware washer, a spectrophotometer and additional composite sampler. The sampling and analysis program at our facility has expanded over the past several years due to current upcoming regulatory requirements and the addition of the reclaimed water program. The spectrophotometer is needed to replace aging inadequate equipment that is used to perform analyses that are directly related to both permits. With the facilities expansion and the addition of the reclaimed water program, composite samplers are essential to maintaining compliance. The sampler requested in this enhancement would be a redundant one in case we have a failure. The laboratory dishwasher was funded last year by enhancement for 8,250 dollars and the actual cost turned out to be about 13,000. The glassware washer in our laboratory is a specialized piece of equipment that's capable of acid washing labware and rinsing with de -ionized water. And as you know meticulously clean glassware is essential for the precision and the accuracy of the data that our laboratory produces. The 8,250 will be carried forward from last year's budget into this year's budget and we are requesting the 4,750 dollar difference, so they can purchase a new glassware washer. Enhancement nine, which is similar to the water division enhancement number nine as well, provides additional funding for the annual support agreement for the Hansen software packages that we already own or they are either currently in use or we are in the middle of implementing them right now. It should be noted that these funds are not to purchase licenses, but it's to purchase the annual support agreement that gives us free software upgrades and free technical support. And the Hansen Asset Management Solution is the center piece of our strategy to insure the wastewater division infrastructure is operating and maintained in a responsible, fiscally conservative manner. Enhancement ten is the first of a few reclaimed water enhancements we have. This if for a booster station and reservoir at the wastewater treatment plant. We want to be able to move the point of compliance for our reclaimed water program to the wastewater treatment plant. This will allow us to do that. It will also supply a reservoir, so that we can more reliably produce and send reclaimed water to residences or parks or golf courses and have a sustained supply, because while the wastewater treatment plant is going to be under compliance with the class A reclaimed water limits, you know, 99 percent of the time, there are times every now and then when we need to take it off and we need the reservoir to give us that -- a little bit of a cushion in those instances. Number ten, there Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 65 of 91 is a lot of things on this enhancement, so I'll try to briefly touch on each one of them. This enhancement provides funding for ongoing maintenance expenses, as well as minor facility improvements. There are a few major pieces of equipment that are in bad need of recoating. The harsh environment that it is subject to requires some of the metal to be de -coated every five to ten years. We have two clarifiers, one that was built in 1997 and the other in 1999 that have not been recoated yet. The aeration basin and post -aeration basin blower filters are required to be replaced frequently. They cost about 3,000 dollars a set and so there is money in here to fund that. Valve replacement funds are needed to replace many valves that are critical for plant operation, some that were originally install in '78, a lot of these valves are subject, they are in the ground, they are exposed to ground water and corrosion and they are currently inoperable. The diesel tank upgrade, those funds would allow us to upgrade the fueling part of our diesel tank. The diesel tank was originally designed to supply fuel to the emergency generators, but we'd like to upgrade it and provide some spill containment, so we can fuel our diesel powered equipment at the plant out of that tank and -- excuse me -- so we can -- yeah. Like the new sewer cleaner trucks. Sorry about that. And there is others the parks has also talked to us about maybe being able to use some of that fuel at the tank, but we couldn't allow it, because there was no spill containment there. The pumping equipment is necessary, because we currently don't have a portable pump that can be used in an emergency. The wastewater treatment plant is in need of a fire alarm system for the facility. Currently none of the buildings have fire alarms. In the event of an emergency employees either have to be called by the radio, on cell phone, or searched for manually throughout the plant. This would provide audible and visual like flashing lights and an audible alarm to let people know that there is an emergency situation. And, finally, Idaho Power has identified the needs for some harmonic filters out at the plant. Harmonic filters are used to eliminate harmonic distortions caused by the equipment and it can cause damage to the equipment. Next enhancement is for two projects out at the wastewater plant. The first is wastewater treatment plant primary clarifier fermentation. We want to convert the old primary number one and two, the small ones out there into fermenters. This will help to seed the process for biological nutrient removal and basically help us remove more phosphorus and nitrogen more efficiently in the aeration basins. It's for the original pre -design of that. Filter project costs of both of these is 1.55 million. This year it's 150,000 for the fermentation to do a design and 400,000 to do that bio augmentation, which is a process in the solid side of the plant, which will allow us to reduce nitrogen. We are hopeful it will reduce it to levels to where we can start to look into aquifer recharge with our reclaimed water program and also it has a potential to boost the capacity at the wastewater plant. Enhancement 14 is for reclaimed water transmission lines on Ten Mile Road from the wastewater treatment plant down -- all the way down to Franklin, which will connect into the reclaimed water transmission lines that we have in Ten Mile interchange project to allow us to irrigate Ten Mile interchange. It will also give us a potential to irrigate the area such as Lake View golf course. We can work out the issues there. Or other golf courses, parks, or -- and it would also build a back flow for the reclaimed water transmission system, so that we can go to other areas of the city. Enhancement 15 is for automation upgrades. The funds requested here are needed to continue to maximize automation of the plant and the collection system. Automation has the Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 66 of 91 potential to reduce staff time required to operate the systems, as well as give added assurance that alarms are in place when the equipment's not functioning properly. SKADA automation helps reduce man hours by monitoring processes remotely 24 hours a day, reducing the frequency of routine inspections. Additionally, these funds will be used to replace older outdated PLC's in the system with a single standardized type and some alarm systems at remote locations, such as lift stations, could be significantly upgraded and additional alarm capabilities added, such as security features that will warn us if control panels are open or gates are open by unauthorized people. This enhancement is for a study to look into the Boise River outfall pipeline replacement or retrofit or rehab. We are not sure exactly what we need to do with the pipeline at this -- at this time, so we wanted to request the 75,000 dollars this year to look into that and to see what we need to do to rescue the pipeline, if -- and, then, in 2011 we would actually ask for the construction funds, which may be close to that number, but I'm thinking it will be a little less than that number at that time, but we will find that out as we do the study on the line. And, then, this will give us the opportunity to apply more reclaimed water up in northwest Meridian up to several golf courses and some parks and land up there as it develops. And with that I would stand for any questions. De Weerd: Thank you. Council, any questions? Zaremba: Madam Mayor? De Weerd: Yes, Mr. Zaremba. Zaremba: Going back to Enhancement Number Five, sewer line extension. Crane: Uh-huh. Zaremba: Just reading across the bottom line -- it's not coming up on the screen, so I'll just talk about it. Crane: Oh, I'm song. I will get it back. Zaremba: Okay. Crane: It will take a minute. It's probably going to go farther now. Zaremba: You were there. Crane: I know. Sony about that. Oh, man. Maybe I should get somebody from IT to -- yeah, it's going way -- I don't know what -- okay. Zaremba: There we go. No. All right. Thank you. Rountree: PC training is in order. I don't see that on here. Forgot his question now. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 67 of 91 Zaremba: The question is kind of apparent, actually. The annual request line at the bottom -- Crane: Uh-huh. Zaremba: I understand the basic concept behind why this isn't needed, but there are some considerable jumps in 2011, 2013. How is it that you anticipate those kind of extreme changes? Crane: We have prioritized and budgeted for each year based on ACHD's five year plan. I'll tum it over to -- Kyle has some more detailed information. Radek: Madam Mayor, Council Members, split corridor phase two. Zaremba: Ah. Good answer. Radek: That was where the 2013 number came from. De Weerd: That was easy. Zaremba: Thank you. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: Question for Stacy, probably. On Enhancement 11, a good portion of the operating expenses to me are -- truly maintenance and I'm wondering why are we doing that as an enhancement? Kilchenmann: I have to figure out which one is 11. Rountree: It's the one with the one and a one on it. Kilchenmann: One with a what? Bird: What was your question, Charlie? Rountree: Well, my question is why -- why are these truly maintenance activities considered enhancements? I mean if you're replacing valves, if you're putting coating on equipment that needs to be recoated and if you're replacing filters, it seems to me that that should be just care and feeding part of operations and maintenance activity, not an enhancement. Kilchenmann: I would imagine they are increases over what was already in the base and so they are asking to increase them in the base budget. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 68 of 91 Rountree: They are asking to increase their maintenance base budget? Kilchenmann: Yes. Rountree: Okay. De Weerd: Any other questions from Council? Rountree: I have none. Good job. Barry: So, Madam Mayor and Mr. President, Members of the Council, if there are any questions about the Public Works budgets or division budgets or any projects or programmatic line items or enhancement requests I should say, I'd stand for those questions now, otherwise, we will rest and let you do what you do best. De Weerd: Okay. Council, any final questions for our director? Rountree: I have none. Bird: I have none. Barry: Thank you all for your time. I appreciate your consideration. De Weerd: Thank you. Okay. Council, do you want to take a short break before -- well, we have -- Kilchenmann: I had a couple more housekeeping items. You want me to start those when you come back from break? De Weerd: No, why don't you do housekeeping now and -- Kilchenmann: One of the items which we don't have to do today, but I just wanted to let you know within the next two weeks we will need to kind of wrap up all the costs that are floating around out there for the City Hall, so we can do an amendment FY -2009, so we can wrap that up. So, we have a lot of contract -- we have the contract information on existing contracts, but any kind of thing that's out there, like the lobby art projects and so forth, we will need to wrap that up. And, then, the second item is a suggestion I have for you to think about while you're taking a break, is that we take our three percent property tax base increase, which is 515,000 and we move that immediately into the Public Safety Capital Improvements Fund and just earmark those funds for construction for public safety, since you talked about the advance of doing construction now while costs are low, etc. So, that's the way to take it out of the bay, but use it where we can for a one time capital project. And so with that when you come back we will put the summaries up and you can start setting the budget. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 69 of 91 De Weerd: Thank you. We will reconvene at -- in ten minutes. Five after 2:00. (Recess.) De Weerd: Okay. We will just reconvene and as we have done in the past, we have just taken the budget and started at the top and run through the summary piece. So, as we get to -- I guess, Stacy, do you want to walk us through or do you want me to? Kilchenmann: You usually do. De Weerd: Okay. Council, I guess we have a list of the capital replacements and I know there was one reference to the -- to the list. There any questions in the capital replacement section. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I guess it would be a question. On the street lighting line item from something else I was looking at, the majority of that cost I believe is electricity pad to the Idaho Power, but I know we have talked about replacing street lights with LED lighting and stuff. I don't remember seeing anything in this budget that would get that started. De Weerd: I think at this point we are looking at the energy grant that we are in the process of pursuing as a kick start to that activity. So, yeah, we didn't have anything as far as enhancement on that line item. Zaremba: So, if we got revenue from that, then, we would make a budget adjustment to use it. De Weerd: Yes. Zaremba: Okay. De Weerd: It would -- it would be treated similar to the community development block grant process. Zaremba: Thank you. Rountree: Madam Mayor, I didn't have any -capital replacement issues. I just wanted the clarification on people versus computers and got the answers. De Weerd: I appreciate that. And with MPC no longer in business, it necessitated computer replacements and you will see more next year, too. Okay. We will go down, then, into the enhancement. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 70 of 91 Rountree: Well, I guess on that point, not to interrupt, but -- excuse me. We have a policy on renewing -- does the policy address consistency or models of computers, so we don't get into a situation where they like -- whatever. Dell. And they like Sony and somebody else likes HP and -- do we have a purchasing standard where if you need a PC at your desktop and you're not a high user, you're going to get this model and if you're a high user you're going to get this model and if you're going to be doing graphics you're going to get this kind of monitor and this kind of video card and this kind of software support, those kind of things? De Weerd: Okay. Terry? Paternoster: Madam Mayor, Members of the Council, we do have standards that we implement. Right now we have standardized on Dell machines, partially because of cost. Typically what we have found is regardless of the job that the individual has, unless they are doing some high end graphics processing, typically the machines that we are buying today are capable of handling the majority of the processing that takes place. You know, in specific, you know, to the MPCs, the problems that we have with that particular model is -- and replacement is that MPC did go out of business and we can't really get replacements and the machines are extremely slow. But I think that what you will see is that we have accelerated the replacement on some machines, but next year we are also -- you will see a much smaller request, because it's only the remaining 20 or 30 machines that didn't get replaced that are MPCs that will be on the list underneath the five year replacement policy. Rountree: Thank you. De Weerd: Okay. Council, anything further before we get into the enhancement section? Seeing none, we will just go in through the -- there you go. The laserfiche scanner from the city clerk's office. Bird: Madam Mayor? De Weerd: Yes. Bird: That goes with the -- as I understood from Terry, that we, basically, needed to get him that extra server to get this -- is that right, Terry? To allow that? De Weerd: On the SANS? Bird: Uh? De Weerd: The SANS? Bird: Yeah. De Weerd: Uh-huh. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 71 of 91 Paternoster: That is correct. To continue to scan we will need additional storage space. Bird: Okay. I think this would be labor saving, if nothing else. De Weerd: Okay. And, Finance, I guess you can just take the administrative part and say is -- are there any issues with the items under consideration in this section. Kilchenmann: Madam Mayor, I do have a question. The VIP -- maybe Robert can answer this. Now, is she saying that should be 15,000 and not 63,000 or -- Rountree: That's correct. Kilchenmann: Change that number? De Weerd: That was my understanding, that the 63,000 is no longer on the table for consideration, it is now 15,000 -- Bird: Fifteen thousand. De Weerd: -- for the additional routes. So, if Council supports that, the 63,000 would change to 15. Rountree: And is it in this particular item where we add the 30,000 for the senior center? De Weerd: That's already in the Other Government. Rountree: That's the Other Government. De Weerd: Yes. Rountree: Okay. De Weerd: It was just the detail that we asked them to provide every year. Rountree: Okay. Bird: Madam Mayor? De Weerd: Yes, Mr. Bird. Bird: You know, they said we are not a member of Sage. Who has been the member of Sage? Because I know the senior center has got quite a few grants from them. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 72 of 91 Where has those come from? And we have been actually the administrator of it, I thought. De Weerd: Mr. Bird, when we started with those grants we were a member and when they were in the process of wrapping it up, they weren't and they took issue that they were working in our community when we were not a community member and the same with the grants to small businesses, they have a good success ratio of grants, too. They have other programs that they provide that our small businesses have been a recipient to and we think that the 3,000 dollars does lend to the administration of that a lot of the benefits our community receives. Bird: I don't mind leaving it in. I was quite shocked that -- to be truthful with you that we had been running them, but you are right, we haven't had one for a year or two, so they have been from earlier times. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: If I may, I'd like to go back to the VRT bus route one. I do support the change of this enhancement to provide more subsidy to the inter -county route precisely the way it's expressed now, but 15,000 dollars to do that. I don't particularly want to drop the idea of the Ustick extension that's e I guess it's being called and I just want to say to Caleb that I appreciate and encourage him to continue the effort to seek another source that would fund that and I hope that we do see this back at some point with money in and, then, the ability to put that money out. But I would also like to make a separate comment for the direction that we would go with the whole public transportation issue. I'm kind of embarrassed that we are the largest city in Idaho with no public transportation. A lot of people call us about it. I have lived many places around the country and every place I have lived that was growing, by the time they had 60,000 citizens they had a bus system for within the city. And I realize the situation here is we blew by 60,000 people so fast that, you know, it was not any kind of a way mark, we were just screaming along. And at the time we were all pretty optimistic the state legislature was going to enable Valley Regional Transit to have a source of income, which they don't currently have, and I guess my point is that a public transportation system is something -- not only is the public asking for, but it's a thing that serves a purpose to help with air pollution, help with traffic congestion, help with all sorts of things and even though I'm not going to make an issue about it this year, I hope that -- unfortunately with the belief that the legislature is probably not going to do anything to help, I feel that by next year we ought to be talking about how we can step up. Boise funds their system out of their general fund. Nampa and Caldwell do. Garden City contributes. We do -- and not denying our contribution to the inter -county line, and we already do pay VRT for their administrative expenses, but the transportation task force is working on what a system might look like if we had it and I think we all need to be prepared to discuss providing that as we get to the 2011 budget. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 73 of 91 Rountree: Madam Mayor, my only comment to that is if there are additional matching funds available, that might very well be a place we want to go, but right now all the federal funds that are available are being matched. The request for the 63,000 dollars was a request late, because there was some additional federal match available that's all been matched, so without that none of the systems we are talking about work and we are talking multiples of millions of dollars in order to have a public transportation system. Some way we got to get a funding mechanism and I don't think until we do I -- it's a bit of a dream, but a dream we ought to keep. De Weerd: Speaking from our two VRT representatives. So, stay tuned on that discussion. Any other questions on the administrative section of the enhancements? If there is not, we can move on to the fire. No questions here? Bird: I don't have any. De Weerd: Okay. Then the parks department. Rountree: Madam Mayor, the only comment I would make there is to make sure that those items that are enhancements for Kleiner Park be dedicated to that -- for that purpose and if that doesn't look like it's going to happen, that those funds would be rolled over until the next fiscal year and not diverted to some other activity. De Weerd: Thank you. Bird: I agree. De Weerd: Note made. Okay. If there is nothing further on that -- in our police department. Bird: Looks good. De Weerd: Okay. Rountree: Madam Mayor, I guess on that I'd make the comment that it seems -- it's good the community is getting behind the K-9 program, but I'm not so sure that we necessarily have to have bake sales in order to fund that program. If they need more support in the way of the training facility, I would consider that enhancement or whatever. At least match what the community has put out. Lavey: Madam Mayor, I'd just like to point out that I thank Council for their support and I do believe that I do have Council's support in this regard and I think it's the community that wanted to do something and that's why we did it, so -- Rountree: Well, if they don't make it, then, I think we can match enough to make it happen. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 74 of 91 Bird: You bet. Lavey: I will be back. Thank you. Zaremba: Madam Mayor? De Weerd: We know you will be back. Mr. Zaremba. Zaremba: In this case I thoroughly agree with Councilman Rountree. I appreciate the community's involvement and their support and I think we should be ready to make up the difference, even if that's more than the 9,000 dollars that's currently being asked for. It won't be a whole lot more. Somebody said the whole cost is 15,000, 1 think, but -- or somewhere around there. Bird: That's awful cheap for the best employee you have got. Zaremba: Yeah. I would like to make one other comment, if I can, and this is probably actually for a later policy discussion, but since it was brought up about the shooting range, I do support the idea of capital projects getting going during this down tum, if there is any way that we can work that out and I would comment along with that that there are many cities that require capital projects that are paid for by city taxpayer funds or even enterprise funds or user fees, that require that the contractors prove that a certain percentage of their workers are residents of the city that's paying for the work. I have not seen that in Idaho, but if we were to justify doing projects now, I would like to explore the idea of having a requirement that 25 percent, 30 percent of the construction workers have a Meridian address. That's just a thought that I throw out. Bird: Madam Mayor? De Weerd: Mr. Bird Bird: While I think the idea is fantastic, what we would -- what we might save, we will spend in administration of the checking addresses and all that kind of stuff. It's like a Bacon Davis job, you find very few people in a busy time that will bid a Bacon Davis job, because they are so administrative top heavy you can't -- you can't put -- you can't put enough profit on top of the job to pay for the administration costs. So, while I agree with you, David -- and there is a -- there is something in the state statute that a percentage or -- of your payroll or something has to stay within the state of Idaho or, you know, be the people have to be there. My favorite -- my thing would be if you'e bidding out jobs and this if off the subject and I probably shouldn't go there at this time, but if we -- he brought it up. If we are going to do that, if we are going to give a benefit, let's give our -- if it's a local contractor with a business address in Meridian, Idaho, let's give him a two or three percent advantage when he bids. That's -- a lot of states do that. Zaremba: That sounds good to me, too. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 75 of 91 De Weerd: I don't think it sounds good to our attorney. Rountree: I'm not sure that's something we can do. Bird: Why? That doesn't have anything to do with the budget, Bill. We can talk about this at some workshop. Zaremba: Yeah. Nary: Madam Mayor, Members of the Council, not get you to move off the subject -- the city of Boise has tried to -- Bird: I know they have. Nary: I think it's -- I think it's right to challenge. The state code is pretty specific at what you can require and what is not required. That's certainly an area that Boise is trying to go this route, allowing it to give some advantage to a local company. I think they are subject to being challenged for that. I don't -- I don't think there is legal support for that in our state. Other states do allow that and our state just doesn't. Zaremba: Thank you. De Weerd: Okay. If there is no other questions or comments on the General Fund, we will move on. Lavoie: Excuse me, Madam Mayor, Members of Council, just wanted to bring up a point that was just brought to my attention that for the IT department under the enhancements, it looks like I had a typo in there. For the RF ID system, it's an enhancement on the IT division for 15,100. It should be for 25,000 even. So, that would be an increase of 9,900 dollars. So, I just wanted to bring that to your attention that there was a typo. It should be for a total of 25,000 dollars even. De Weerd: Okay. Do you want to make the change there, then. It looks correct on the enhancement, was it not? Lavoie: The enhancement that I had was incorrect. We will get you an updated version. De Weerd: Okay. Kilchenmann: Madam Mayor, just to -- did you want to go to Todd's total at the -- did we want to discuss the transfers to the capital improvement and public safety fund with this fund or you want to come back to it? Rountree: I think we need to talk about it now. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 76 of 91 Bird: Yeah. I do, too. Rountree: I guess I support that. Zaremba: Likewise. Bird: Same here. Kilchenmann: So, we would transfer 515,000 to the public safety fund and the remainder of our excess General Fund we would transfer to the Capital Improvement Fund. Bird: Yes. I would be for that. De Weerd: Okay. Rountree: And I guess while we are on General Fund topic and budget items, I know the line item in the -- in the budgets staffing that we have before us, the consideration for -- from the compensation committee for the Mayor's wages, do you want to adjust that now or do you want to think about it some more? Do you want to leave it the same? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I -- while I'd like to -- I'd like to think about it a little more and do some other -- other comparisons. I definitely believe that a pay raise is -- is entitled, the same as all employees. I don't know if -- if at this point, with the economy the way it is, if I want to go quite what they recommended, but I would certainly like to think it over and do some checking. Rountree: I guess my question is if we are going to get to a point where we are going to publish this budget, we probably ought to have that there. I'm just going to throw this out for consideration that we -- we change that number. I think their recommendation was something on the order of 76,000 some dollars. I'm going to suggest that we at least for this budget and publication purposes that we show that at 75,000 dollars. Bird: I don't have no problem with it. We can always -- if we want to add or subtract we can in -- Rountree: We can reduce it a lot easier than we can raise it. Bird: Yeah. Zaremba: Madam Mayor? Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 77 of 91 De Weerd: Mr. Zaremba. Zaremba: I could see going along with that. And as usual I would like to throw one sideways thing in here. I know we haven't come to the conclusion, but we have discussed and several of us have suggested that we are satisfied with the pay that the Council is getting at this moment and this may not be the time and the economy to change it. I would like to discuss one slight alternative to that. The president of the Council does more work than the rest of us do and also sometimes fills in as acting Mayor and I would like to suggest that we consider a slight increase for the president, if not -- not for the other three of us, but a slight increase for the president. I don't know how much that would be, but 1,000 a year, 2,000 a year, 50 dollars a day that he's acting Mayor or something like that. Any rise in discussion on that? De Weerd: And, then, he could convince me to leave town more often. Hoaglun: Or we could just say that any foundation that's created can pay the president more, just like the universities do, and see what he gets. Bird: Now, presidents of universities are required to raise their own money, so they can get taxed. De Weerd: Now, I -- Bird: I don't have a problem with that. De Weerd: Just of issue of discussion, you know, I know that our Council presidents have always spent a lot of time and maybe take the recommendation -- yeah, I don't want decision making to be necessarily arbitrary and I think that the committee put a lot of thought and discussion into it. If you wanted to at least look at the increase for the Council president to compensate for the additional duties and time, that, then, you're basing it on something. Zaremba: Can we pass that back to the committee, then? I don't know if they are meeting again or are they done? Maybe that's a question for Mr. Nary. De Weerd: Mr. Nary? Nary: Madam Mayor, Members of the Council, it wasn't the intent, necessarily, to have the committee come back. I mean unless that's the direction you would like to go. Their recommendation was to the Council pay to 10,500, so if you wanted to make just the Council president's position that -- I think I did communicate with Council Member Zaremba that the city of Boise is the only city I'm aware of that pays a stipend to the council president for every day that they are acting mayor. I didn't ask our payroll department, but I think it's going to be problematic for them to have to track that -- for the Council president to have to track that and what we do for partial days. I think you Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 78 of 91 would be wiser to do it more in a blanket sense. If you're going to have a council president, that person will get paid X and, then, the other council members will get paid a different amount. You could pass that in your ordinance that way and I think that would be a little cleaner and easier to administer. Rountree: My comment to that, Dave, is that, yeah, there is a lot of extra time, but time, I guess, in my case is not -- not the issue, it's what other expenses do I have as Council president and I have simply just kept track of the additional mileage for all of the ancillary meetings that you get pulled into and been compensated for that mileage and it's worked for me. You just have to be pretty diligent and where you go and car pool when you can and keep track of your additional mileage above and beyond what you would do as a regular Councilman. That helps. Zaremba: Would that be easier, Madam President -- or Madam Mayor, would that be easier, though, if we just said there was a flat thousand dollars extra or 1,500? It would save a lot of paperwork. Rountree: Still wouldn't get rid of the potential option for being paid for mileage. De Weerd: Yeah. And, then, you get taxed on it. Hoaglun: Yeah. Rountree: And, then, you get taxed on it. Hoaglun: Madam Mayor -- and what I see in the -- listening to the Council president's response that it's above and beyond -- you know, the Council president job does require more than the rest of us put in and that still can be done for those ancillary meetings, but I think if we do the same thing as we are doing for the Mayor's office position and that's put in that higher number, we can think about it, it's in, and, then, if we decide, well, not do that, we don't have to, but if we plug it in, but -- plug that number in, then, it's there and we can decide if we want to or not. But I -- I kind of like the idea. I think that job does require extra effort and time is money, although it's not much. A dollar an hour, Charlie. Zaremba: I like Councilman Hoaglun's idea. Just stick it in the budget. Bird: Yeah. I don't care. De Weerd: Okay. Rountree: I would suggest that it not be an additional thousand dollars a month, though. That's -- Zaremba: No. No. Thousand dollars a year. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 79 of 91 Rountree: Yeah. I was going to say, maybe 50 dollars a month. Bird: Yeah. That would be my -- Zaremba: Well, I would say the figure -- Bill just mentioned, the figure that the Council -- I mean the committee suggested for everybody. Bird: That's 15 -- that's 15,000 a year, which runs to about a hundred and a quarter -- is 1,500 bucks. Zaremba: I don't have a problem with that. Bird: And that runs to a hundred and a quarter a month. Rountree: That's about what it costs you. De Weerd: Okay. That's what we will plug in. Zaremba: That's fair tome. Lavoie: Madam Mayor, Council Members, I just want to verify you want to do 10,500 for just the president? Bird: Yeah. Lavoie: Keep the three other Councilmen as the existing salary. Zaremba: Nine thousand. Rountree: Right. Lavoie: Thank you. De Weerd: Okay. Anything under the General Fund to discuss further? Stacy or Todd? Kilchenmann: There is one issue. Maybe we could take care of it now. The Enterprise Fund, the aerial photography, they originally -- I guess they wanted that to be split between three funds, because they said fire, police, and planning use it. So, probably the easiest thing would be to -- is to put it in Other Governments, instead of government split with the three funds, instead of having it in the Enterprise Fund. It's split 10,000 dollars. De Weerd: Council, anyone have -- anyone have an issue with that? Bird: I don't. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 80 of 91 Rountree: No, that's the way -- De Weerd: All departments do use it. Yeah. Zaremba: Makes sense to me. Bird: That would give it its own number, too. Zaremba: I would expect the parks department -- Kilchenmann: Oh, I think it does have a general ledger account number. Bird: Okay. Kilchenmann: Okay. We will do that, then. De Weerd: Okay. Bird: Madam Mayor? De Weerd: Yes, Mr. Bird. Bird: This is just a clarification from me and an explanation of whatever. I see that we are proposing to pay three full-time employees in the Planning and Zoning Department out of General Fund. What -- what jobs is those three -- the director -- which three planning employees would -- De Weerd: Mr. Bird, I guess the director position, the receptionist, and the comprehensive planner is what was identified. Bird: And could you give me the reasoning behind it? De Weerd: Yes. As mentioned in the presentation -- or, Anna, if you would like to -- Canning: Either one. I wondered up here and, then, I didn't know if I should stay or go back, so -- Bird: Sure. Go ahead, Anna. Canning: The idea was that, you know, if development stopped, if there was no subdivisions coming in, if there was no new buildings coming in, there are still some functions that the planning department needs to do. People are still moving in and out of those buildings. People still need signs. People still need to come in and ask questions about their setbacks, things like that. And also the more important one is the community still needs the plan. Even when there is not growth going on, there is Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 81 of 91 different issues you plan for and I think we have seen that recently, you know, that the set of issues we had this year, compared to three years ago, it's completely a different set of challenges and issues. So -- so, there is still planning to be done. So, the idea was that the CDBG grant administration and the comprehensive planning would be done by the comprehensive planning manager. You know, there probably wouldn't be a manager anymore with just three people in the office, but it would be that kind of general set of job duties. You still need somebody to answer questions, to sign off on tenant improvements, to issue CZCs and that would be covered by the planning director and/or the admin assistant. De Weerd: You know -- and I guess, Mr. Bird, we also looked at what other communities were doing, both rapidly growing and those that were just maintaining growth, and this is a consistent model throughout much of the state and other regions, so we did try to look at it long term what makes sense and to incorporate that -- that approach now. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: The only -- the only -- and that's not a real concern, but the only thing I got to say is, yeah, as we build out, the sad part is -- as Bill and I have discussed this many times, we lose our planning and zoning people and have to have more lawyers. But I don't know if -- if right now is the time to -- to swing that over to the General Fund, because I think we still got lots of area that has got to be developed, even though I know -- realize we probably got enough platted area out there to last us -- if this kind of economy stays, 20 years, you know. So, I don't know, I just -- I know when we -- '96,'97 when we set up this division, it was to -- to fund itself and I -- I know that there is times when you can't, but -- anyway -- Kilchenmann: Madam Mayor -- Bird: -- I just asked the question, I got my answer. Kilchenmann: Madam Mayor, Council Bird, regardless of how we do it, it's going to be funded by the General Fund. Some of it is going to be. And it kind of -- if building does pick up and the time does pick up, we transfer it to the Capital Improvement Fund, so it kind of -- it's a net -- it works out net the same, so we just felt like this was probably a prudent time to make it clear to everyone that those three positions are permanent General Fund positions. Bird: Okay. De Weerd: I see that look. Canning: Madam Mayor? Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 82 of 91 Bird: Fine. Canning: Can I make one more comment? Bird: Sure. Canning: Part of the philosophy also was that the Development Services Fund or Special Services Fund, whichever name it is going under, but it does talk about being self funding and self fulfilling. But there are staff in my office that never touch a development application. Most notably -- I mean Caleb and Matt right now don't -- don't get involved in those issues at all. They really are -- they are a General Fund kind of employee in that sense, because they don't get involved with those. They are working with the transportation departments, CDBG grants administration, things like that, and comp plans. So, although it's not those two positions we chose, it -- that's kind of the idea, is that there are some functions in that department that aren't related to development and probably shouldn't be within that fund. Bird: Maybe they should be in some other department. Canning: Well, I like having them in my department, sir. I'd prefer they stay. Bird: Thanks, Anna. De Weerd: Okay. Any other questions on that topic? And it's a segue. Too bad we don't have Mr. Nary's slide, but into the Development Services Fund. Any questions in - - in these two areas? If there is none, let's move to Enterprise Fund. Any questions or additional information needed in here? Well, silence means it's golden to me and if there isn't anything -- Bird: Madam Mayor? De Weerd: Okay. Shoot. Rountree: I haven't got anything noted and it doesn't ring a bell. Bird: We are looking -- we are looking here, but -- De Weerd: Okay. Bird: -- seriously, with the Enterprise Fund -- and I know Tom and his staff has done this -- this is -- they have cut down, as we -- as we know that they -- you know, it's going to be tough with no enhancements to -- to break even in that department this year, unless -- unless the building turned around and starts up again. And I think, to be truthful with you, that the enhancements they have asked for are legitimate. They have got good reasonings behind it. And I know that if they -- if they don't need to use it, they Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 83 of 91 won't use it, so I -- well, I know they could have used other enhancements, I think they have cut it down. I think they have cut it down. I think they have done a very good job of bringing forward just stuff that they really feel what they need within this next year. So, I don't have any problems with it. I mean it's all based on how much money and revenue comes in in that department. De Weerd: Okay. Any other comments or issues with any of the requests? Rountree: Madam Mayor, I had a question that I didn't ask earlier on the radio read program. Does that complete that program? 1-761K on Rountree: I didn't think so, but I'm -- Dees: Madam Mayor, Council President, no, it does not. There will be one more year past that to finish up the program. Rountree: Okay. About the same amount of money. Dees: Yeah. Rountree: Okay. Hoaglun: Madam Mayor, I have a question on that ground reservoir program. Who is -- who is the expert there on that? Rountree: Tom would be. Hoaglun: Tom, I'm just trying to figure out -- that's a large chunk of change and it's something we have to prepare for our future, but how much do we know versus how much we don't know? Let me put the question another way is, you know, as we planned, we got to insure an adequate water supply. Are we fairly confident that in the near term we are okay or are we — don't have enough information that we just think we are okay? I guess where are we in that whole range of things to know what we have versus what we may not have to meet our needs in the future? Bary: Madam Mayor, Mr. Hoaglun, the ground water reservoir project is in alignment with our five year master plan for the water system improvements and DEQ has put pressure on us to fulfill our obligations under the five year master plan as part of our being a water purveyor. So, it is -- we wouldn't move forward, of course, if there wasn't a need for it, but our master plan, and DEQ concurs, with regard to the ground water reservoir, suggests that we don't have adequate reservoir capacity and that's what that particular project is primarily reference for. So, it's increasing our capacity for storage and also for insuring adequate fire suppression needs with regard to that storage. So, Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 84 of 91 we have -- there is a lot that goes into a master plan and we are moving forward with the -- Hoaglun: I need to stop you there, because I got off on the wrong line. Barry: Okay. Hoaglun: The ground water master planning is the one I'm -- I wanted it addressed in terms of underneath the surface as we are drilling wells do we know what we are going to hit, how much capacity, where are we in that process? I apologize, because I got off -- my finger got on the wrong line and said ground reservoir and I was thinking ground water, so -- it was close enough. Bary: Another good questions. On the ground water master planning activities there is a number of different components to that and you've asked a good question that we are unable to answer at this point in time and that is sort of what's going on in the subsurface. We have been probably one of the leaders in not only the valley, but in the state and collecting geophysical, cuttings, and geochemistry information in our test wells when we drill for new municipal water wells. That information has been kept -- has been stored and part of the activity associated with the money for the ground water master planning activities is to consolidate that information and create, essentially, a broader understanding of what's going on in the sub surface. We have multiple aquifers. By characterizing those aquifers, we feel that some of the work associated with that may support future opportunities for permitting of certain aquifers, instead of the entire rights to a sub surface source. There are future needs assessments that need to be done and a future water right acquisitions work that we need to do to preserve and lock up water rights today for future need -- for a future need in the -- in the foreseeable future. There is a geo -- geological and geo -- we are calling it hydro logic framework that we are trying to also build together. There is this unfortunate circumstance and although we are ahead of a lot of municipalities, it is an unfortunate circumstance that a lot of us don't really know what's going on beneath the ground, that we punch another well and we pull out 2,500 gpm of water to serve our community and we cross our fingers that we have hit the right zone and that we are going to get the supply we need and for the period of time we need it and what we are trying to do under that program is to build a scientific base line of information that will allow us to make better decision making and guide the development of this community and also preserve our rights and insure that we don't make mistakes along the way in the future as it relates to ground water source supply issues and distribution issues. So, it's an enormous amount of work. You're seeing right now a lot of requests, if you will. I mean where we haven't made these kinds of requests in the past, as I understand, because we weren't aware, really, of the importance of the information or the value the information would provide to us and so that's why it is an ongoing program, there is a lot of work still yet to do, and that's -- that's the reason for the variance in -- and the continuation of the dollars requested in that program. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 85 of 91 Hoaglun: Okay. Thank you. Thanks for answering the question I originally meant to ask. Barry: Okay. Thank you. Rountree: Don't go away, because I -- on that same subject there is at least five or six of us in the room that for years have heard from probably the same hydrogeologist that you will hire to do this master plan, for water in this basement for a long time was a non - issue. Do we need to spend a half a million dollars to hear that again. The basis of his information I assume will be basis for a new study. What -- what difference -- what different are we going to hear? Are we now going to hear that it's become an issue and this study will tell us why it's become an issue. Barry: Well, I do recognize that Mr. Squires, our hydrogeologist, who you're referring to, has made those remarks. There is some contention currently -- I should say disagreement between the Idaho Department of Water Resources and Mr. Squires on this information. We are not really certain, to be honest with you, where it lies and that's one of the reasons we want to collect as much information as we can. We feel like it's in our best interest, particularly on that subject, that if we find out that we are going to be challenged as it relates to future water rights or supply, that we know as soon as possible and make the arrangements necessary to secure other alternative sources or rights. But that work alone is separate from a large body of other work associated with that particular line item, which is related to tying up future water rights itself, whether the supply's there or not, the state allows us, under specific rules, to tie up rights today and have those seniority dates be granted today for the preservation of future water consumptive needs in the future. So, that's part of the work as well. Also, as you know, we have had a couple of wells that were, unfortunately, developed in aquifers that are substandard and now those wells have compromised water quality, in part because regulations have changed, but also as it relates to the fact that we didn't collect as much information as we probably should have to identify as much as we could about the subsurface. So, the generation of a -- of a city wide, if you will, information base from which we can draw and make better decisions with regard to the sources of the various aquifers is important. A great example is well 28. We drilled that well to about 1,300 feet, we took seven zones of information from seven different aquifers and we identified the best aquifer for us is at the third layer or the third one, which is around 750 feet. So, that's the kind of effort we want to insure, while it costs a little bit more up front to get that information, as the potential to pay may times over for the -- the value of that study in the benefits of the knowledge. So, I don't know -- Mr. Radek's here. I think you have the specifics on each of the activities associated with the request of the programmatic line item before you, so I'll yield the floor to him. Radek: Madam Mayor, Council Members, I just wanted to give Tom a little backup here. I arrived a little late and I apologize for that, but the -- as I said, it's more of master planning or -- than it is a master plan and so looking at it as, you know, here is a report that we are going to get and that's going to be the end of it, is really an unfortunate way to look at it. It's going to include hydrologic characterization, regulatory compliance with Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 86 of 91 DEQ, being involved with DEQ. Rule making with IDWR. Monitoring and aquifer testing. Water rights. Supply planning is a huge part of it, which is not just hydrologic work, it's significant legal work, so a lot of that money really is not going to go to a hydrogeologist, a lot of that money is going to go to an attorney. De Weerd: Oh, man. Radek: Sony to say. But if we can have all the pumps and wells and reservoirs in the world, if we don't fill up our water rights, then, they need to be sown up quite a bit and organized and firmed up and transferred and worked on, if we don't do that, it doesn't matter how much infrastructure we have, the long-term viability of the city utility depends on our right to be able to pump water and use water and right now it's easy, but the days of drilling a hole and pumping all you want era certainly over. So, in my opinion it's a -- it's an investment that's going to be well spent. Future needs, water rights, assessment, Tom was alluding to, well completion reports, data compilation -- there is a significant amount of work here. It's not only preparing for the future, but it's to an extent it's making up for the past where we didn't quite get all the data we really should have gotten to be able to protect ourselves. I hope my comments have clarified a little bit. De Weerd: Thank you. Rountree: More than enough. De Weerd: We know how to build a watch now. I do have a question. We were talking about drilling. Last fall -- and this is off budget topic. Last fall we talked about looking at an ordinance to protect private wells and, then, the drilling practices or -- to enforce drilling practices for private wells to protect our municipal facilities -- where are we with that? Bary: That's a great question, Madam Mayor. We began moving on that issue with our hydrogeologist and out of respect for requests from the Department of Water Resources, we stood down, so that we would not undermine or compromise their legislation to do similar activities statewide. De Weerd: Well, they failed and we need to move forward. Barry: Correct. They -- I wouldn't say necessarily failed one hundred percent, but they certainly did not -- De Weerd: They didn't go all the way. Bary: Correct. And certainly there are gaps that we would like to fill in. As it relates to that particular project -- and that's partly what this money would be funding, we have discussed an approach that does not compromise or overstep our boundaries with regard to state water rights or drilling practices, but also shores up the lack of oversight Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 87 of 91 and, essentially, detail on various drilling components that might impact our ground water aquifer. So, the approach that we are taking at this point is preliminary in discussion and needs to involve IDWR and needs to involve the drilling community, because what we would be requesting, in all likelihood, will have a significant impact on the businesses, that is the drillers, who may not be able to meet those standards in our community and cause potentially big legal issues for us. So, the dialogue is occurring and our hydrogeologist has been tasked with this particular item and is doing background research and has been tasked to bring together an ordinance -- an ordinance framework, if you will. We have been promised that within the next I believe you said, month and a half or so. Radek: I think mid July. Barry: Mid July for the outline of that particular ordinance, that we would, then, begin to craft specifics on and, then, have to get stakeholders involved and, essentially, go through a pretty long process to insure we didn't disinfranchise anyone in this process and also that we weren't over stepping our boundaries as it relates to states rights on the issue. De Weerd: So, we will get an update the end of August? Barry: Well, we will get an outline. Yeah. And we can certainly give you an update at that point in time. De Weerd: That would be great. Any other questions from Council on this? Bird: I have none. De Weerd: Okay. Thank you, Tom. Bary: Thank you. De Weerd: Stacy, I do have a question. In Other Government in the past we have had a line item for park maintenance of parking lots. We do have a parking lot that we need to get a new agreement on with Mr. Nary and there will be some repair costs. I don't know if -- if that will commence this budget year or next, but we will need to make sure that we have an adequate amount in -- I couldn't find where that might be in the budget. Kilchenmann: I'm wondering if Todd didn't realize we had another parking lot and moved it to the City Hall parking lot? Did you do that? De Weerd: Because we still have the one over by -- Kilchemann: Right. Bird: The Masons. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 88 of 91 De Weerd: We have two. The Mason that we have an expired lease agreement on and the one over by -- Kilchenmann: Into the City Hall. So, there is -- it's 2,000 in the City Hall right now. Bird: Well, move it back into Other Government. Kilchenmann: Or we can increase -- we probably should increase Other Government. We probably should leave it in -- some in the City Hall. We are bound to have maintenance. Maybe we should add 2,000 back to Other Government for the other parking lot. I think that's enough for the repairs that we are going to do. De Weerd: I think Tom's staff has been looking into that. I don't know if -- if you have anymore information. Barry: I'm sorry, I missed the question, Madam Mayor. De Weerd: The -- I know -- is it Terry, the transportation person? What is his name? Tim. That he has been looking at the alley and the parking area at the Masons, the lodge? Barry: I don't know. Kilchenmann: You know, if -- even if -- De Weerd: All right. We are just -- we just need to know how much -- Kilchemann: Yeah. If you could just tell us next week at the beginning of the week, we could add that in there, because we don't notice -- actually notice the budget until we tie all this out. De Weerd: Does that work, Council? Rountree: That works for me, but -- Bird: That works for me. Rountree: -- just keep in mind that the total cost is going to be split between MDC and the city, so -- Bird: Yeah. And I'd let MDC have the lead. Rountree: They are. Bird: That's what I thought. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 89 of 91 Rountree: Tom, MDC is supposedly going to get an estimate on that. Barry: Oh. Okay. Great. Rountree: So -- Bird: We should have something Wednesday, Tom, and if they do, I will get it to you. Barry: Okay. Thank you, sir. Appreciate that. De Weerd: Thank you. Any other considerations you didn't see in your budget? That's the only thing that came to mind. Okay. Council, anything further? Could I get a motion to adjourn, if I don't? Rountree: We haven't had -- Bird: No. De Weerd: Oh. Okay. Bird: We haven't let him off the hook yet. De Weerd: Sony, Tom. I tried. Nothing. Rountree: Madam Mayor, my only request would be on the land acquisition. Did that happen this year or are you anticipating that's going to happen next year? Bary: Madam Mayor, Mr. President, we have, as you know, been in discussions with a real estate agent on the matter and have been briefed on a couple reports regarding that. It is uncertain at this point to say whether or not we would be able to purchase that. I would say the -- without going into detail or in an open format I would say we just don't know yet. Rountree: Okay. That's fine. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Rountree: That's the shortest answer I have ever gotten, Tom. De Weerd: Mr. Zaremba. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 90 of 91 Zaremba: Well, in pursuing that question what is the process? If they were to purchase the property in what would be '09, can we accelerate money out of the '10 budget into '09? 1 didn't hear that. Rountree: Budget amendment. Zaremba: Okay. So, we are just making sure it's in the budget somewhere, even if it's the wrong year. Okay. De Weerd: I just have one more thing. Did we take care of the ADA thing? I just want to make sure. Kilchenmann: We did not increase that yet. Did you want to increase that -- De Weerd: There was discussion regarding -- Kilchenmann: The last I heard is -- De Weerd: That under Other Government. Kilchenmann: Some specific policies in how we would spend it, but do you want to go ahead and just increase it to 10,000? Bird: How much? De Weerd: That would be my suggestion, move it from 1,000 to 10,000. Zaremba: Madam Mayor, the same theory, reviews on a couple other line items, if, after we make policy we think we could make that line item smaller, we can do it. So, I -- just just as a place marker, I would say ten thousand. Rountree: Yeah. That's okay. Zaremba: We know we -- Rountree: For publication purposes. Zaremba: We know that we spent a little over 6,000 this year on it, so that's not very far off. Kilchenmann: Okay. We will go that. De Weerd: Okay. Yes, Mr. Bird, I would. Bird: I move we adjourn the Special Workshop on budget. Meridian City Council Special Meeting / Budget Workshop July 2, 2009 Page 91 of 91 Rountree: Second. De Weerd: I have a motion and a second to adjourn. All those in favor say aye. All ayes. Motion carries. MOTION CARRIED: ALL AYES. MEETING ADJOURNED AT 3:12 P.M. (AUDIO RECORDING ON FILE OF THESE PROCEEDINGS) MAYO"A MY de WEERD ;�` ►�„_ _ ESI - IF 4r iso • �����.� OF / o? 5 /_ 200 DATE APPROVED E VHOLMAN, CITY CLERK d d 7 2 E V m s v � a � � o C U O W C � c C UJ N �I L E a a c C .L tm 'C p) M C LV �2m N•O cn p I� C N 0 -0 N >% O f/1 Ct -z' >CE0 a "5 a)o 0 o N C a) a) }, ° E:� .>c� E �- cu 0 Wma) mEo0 —o CL o m m E .� E N� c c cu cu 0 E -C rn L ca0�g a) � a) acav cL p a?: a �2 c a) p �U0 `a) v a? c w M000MMaC)m0000000M rN�r-V-��MO�NMMONM'Rt O O N M O M M M M CN 0 M M M Ln Cl M M O � N It r O M LO M O V- M'I Ln-c-NM0000rN9N` 9 : 00 CO 60 0 0 0 0. P .. P v- v- � N M -� O00000LOLO000LO ALO Ln MM 2 Oe -M it0�NMO�NIt�00N— C c0666666660600000 -N4 64 0 V- V- V L a 2 a) U � c UJ o cu aaoi 06 (C L c cn C ccN 0 _ t: o Ct cu4 aa) O� �. a� o :3 EE LL w o � cu >CE0 a "5 a)o 0 o N C a) a) }, ° E:� .>c� E �- cu 0 Wma) mEo0 —o CL o m m E .� E N� c c cu cu 0 E -C rn L ca0�g a) � a) acav cL p a?: a �2 c a) p �U0 `a) v a? c w M000MMaC)m0000000M rN�r-V-��MO�NMMONM'Rt O O N M O M M M M CN 0 M M M Ln Cl M M O � N It r O M LO M O V- M'I Ln-c-NM0000rN9N` 9 : 00 CO 60 0 0 0 0. P .. P v- v- � N M -� O00000LOLO000LO ALO Ln MM 2 Oe -M it0�NMO�NIt�00N— C c0666666660600000 -N4 64 0 V- V- V L a GENERAL FUND Actual Revenues FY2007 $13,434,463 Actual FY08 $15,679,069 Budgeted FY2009 $17,231,000 Estimated FY2009 $17,231,008, v� �Z, ,.�° Projected FY2011 Projected FY2012 $4;0 $19,604,877 $20,688,70 Licenses and PermitNN"s $6,732 $6,730 $4,000 $4,000 $4,000 $4;0 Alcohol licenses $53.196 $42,385 $45.450 $45,000 $45.000 $4 Dog License/Adoption $69,650 $70,937 $45,000 $70,000 ,� $70,000 $7 Miscellaneous $11,462 $4,748 $o $o ���`�.� � -rte $o $13,0 Total licenses -permits $134,306 $118,070 $90,450 $115,000 .�.i .. $115,000 $11 TOTAL REVENUE $24,037,359 $27,264,764 $26,835,736 $25,862,69 � 00 �5Intergovernmental� $27,962,877 $29,553,1 Intergovernmental��vON Income Restricted r� $1,752,426 $1,400,000 State liquor apport. $418,775 $458,546 $450,000 $450,000 ;, $450,000 $45 State revenue sharing Rural Fire $3,388,596 $1,012,107 $3,568,686 $1,504,890 $3,203,454 $1,359,570 $2,900,000 $1,200,000 ' � $2,750,000 $1,500,000 $3,00 ��� � $1,50 Grants $46,621 $101,425 $372,862 $365,000 , $125,000 $12 Total Intergovernmental $4,866,099 $5,633,548 $5,385,886 $4,915,000$4,825,000 $5,07 5 Fines and forfeitures: , CourtRevenue $523,639 $457,477 $500,000 $410,000$40$4 $400,000 $40 Other $7,869 $19,483 $5,000 $5,000 ,` $5,000 $ $405,000 $40 Total Fines and Forfeitures $531,507 $476,960 $505,000 $415,000 Franchise Fees $1,307,324 $1,427,227 $1,276,400 $1,446, Ara % Q ��'�'.., $1,300,000 $1,30 Charges for Service School Resource OfficerZA $159,876 $167,167 $200,000 $200,000; 4�j'�' - 3 11 � $200,000 $20 Sanitary Service Admin $509,331 $645,654' :. False Alarm Fees $19,100 $10,640 $10,000 $10,000 G'.i� wrR ' $10,000 $11 Recreationr p ograms $171,169 $242,384 $185,000 $210.000 3 $210,000 $21, Park Reservations $35,431 $36,238 $35,000 $35,000 7 $35,000 $3 Other $16,690 $0 $149,000 $19,070 $17,000 $161 Park Impact Fees $8.91,706 $1,039,104 $750,000 $500,000 ' $500,000 $571 Fire Impact Fees $445,555 $511,525 $500,000 $205,000�OS $205.000 $23. Police Impact Fees $103,116 $126,770 $120,000 $48,000 s ..." $48,000 $5 Total charges for services $2,351,974 $2,779,482 $1,949,000 $1,227,070 �� $1,225,000 $1,48 Interest Restricted $124,803 $75,028 $30,000 $50,000 $25,000 $2 Interest Unrestricted $918,038 $777,328 $360,000 $450,000 ,.w.�. $450.000 $451 Rent $6,732 $6,730 $4,000 $4,000 $4,000 $4;0 Donations $322,893 $147,286 $4,000 $9,000:,= $9,000 $9,0 Miscellaneous $39,217 $144,037 $0 $0 �¢'#, o $0 Total Miscellaneous $368,842 $298,053 $8,000 $13,000$13,000 $13,0 .�.i .. TOTAL REVENUE $24,037,359 $27,264,764 $26,835,736 $25,862,69 ,y, $27,962,877 $29,553,1 Income Restricted $1,565,180 $1,752,426 $1,400,000 $803,000 $778,000 $88$,4 Income Unrestricted $22,472,179 $25,512,338 $25,435,736 $25,OS9,-9 �f $27,184,877 $28,669,7 CITY OF MERIDIAN PROPERTY TAX HISTORY Calendar Maximum City of Meridian Percent Meridian Year Homeowners Exemption Taxable Value Change Tax Levy Percent Change 2009 $104,471 $5,500,000000 -8.69% 0.003370253 26.240/o 2008 $100,938 $6,023,261,990 3.56% 0.002669721 -5.12% 2007 $89,325 $5,816,364,506 28.24% 0.002813912 -6.64% 2006 $75,000 $4,535,595,873 34.01% 0.003014075 -3.07% 2005 $50,000 $3,384,525,684 $77,000 0.003109519 $297,100 2009 Levy W/O 3% Base Increase 0.003291771 WEST MERIDIAN RESIDENCE Calendar Year Valuation Land Valuation Improvement Total Valuation Percent Change Allowable HO Exemption Meridian Tax Meridian Tax Total Ada County 2009 $87,000 $181,100 $268,100 -25.55% $90,550 $598.39 W/O Base Inc Property Tax $584 Not Available 2008 $100,900 $235,700 $336,600 -5.91% $100,938 $629.15 $2,464,34 2007 $97,800 $258,700 $356,500 16.66% $89,325 $751.81 $2,707.60 2006 $77,000 $220,100 $297,100 6.09% $75,000 $669.43 $2,430.40 2005 $60,500 $218,500 $279,000 $50,000 $712.08 $3,255.26 OLD TOWN MERIDIAN RESIDENCE Calendar Year Valuation Land Valuation Improvement Total Valuation Percent Change Allowable HO Exemption Meridian Tax Meridian Tax Total Ada County W/O Base Inc Property Tax 2009 $59,500 $67,600 $127,100 -16.92% $33,800 $314.44 $307 Not Available 2008 $65,000 $83,600 $148,600 0.00% $41,800 $285.13 $776,98 2007 $65,000 $83,600 $148,600 21.60% $41,800 $300.53 $752,96 2006 $54,000 $62,500 $116,500 26.09% $31,250 $256.95 $637.40 2005 $32,200 $53,900 $86,100 $26,950 $183.93 $840.32 SOUTH MERIDIAN RESIDENCE Calendar Valuation Total Percent Allowable Meridian Meridian Tax Total Ada County Year Valuation Land Improvement Valuation Change HO Exemption Tax W/O Base Inc Property Tax 2009 $73,200 $180,200 $253,400 -14.09% $104,471 $501.93 $490 Not Available 2008 $102,000 $187,100 $289,100 -7.16% $100,938 $502.34 $1,967,66 2007 $99,600 $210,200 $309,800 10.36% $89,325 $620.40 $2,234.38 2006 $64,800 $212,900 $277,700 16.92% $75,000 $610.95 $2,218.08 2005 $60,000 $170,700 $230,700 $50,000 $561.89 $2,568.64 NORTH MERIDIAN RESIDENCE Calendar Valuation Total Percent Allowable Meridian Meridian Tax Total Ada County Year Valuation Land Improvement Valuation Change HO Exemption Tax W/O Base Inc Property Tax 2009 $62,300$199,100 $261,400 -21.12% $99,500 $545.64 $533 Not Available 2008 $89,000 $227,600 $316,600 -18.32% $100,938 $575.76 $2,179.92 2007 $100,000 $274,600 $374,600 6.43% $89,325 $802.74 $2,643,84 2006 $78,800 $271,700 $350,500 54.01% $75,000 $830.38 $2,536.56 2005 $63,000 $98,200 $161,200 $49,100 $348.58 $3,229.66 m $ 44 � R4: co $o g laga F a N C m �QW� M 'tea ia_ l 111111 z 211A co AQ ooflo ell o Z 69t9 0 LU ro- CL LU y) o O 9 EE Cx% .o Q ca r H H9 g� V� g a� ro o sa °� m W° �a �o�E> �8 ? � 061 co 0 Z, LLt7t t ZFi1L c W F d MU"'i E Z�iKiLL c �LL� yW a J C pOp _� [ ;alljQVV e K � IL o� Saco s U s r H Z 9 W Z W OG W a +, CA m La o U L CA O O M M M a01000t0 n M ^ Ln Go m N N 0 r o ift- N oCO, 88 N N N N �;-_roo retic � M t0 01 aaaa O N N COO O LnOLnCOO d 0 V' t0 CD 00 00 O O Ln O tC 4 co 00 OIn co � � O C m 'C C� N _ C L � uou c L C 0 C NODOOGo I� M O O O O .� CL N N N N .moi+—i 00 n1MMM �Mt�00�1 a01000t0 n M ^ Ln Go m N N 0 r o ift- N oCO, 88 N N N N �;-_roo retic � M t0 01 aaaa t u'S oB m Lnc°�(gQ n t0 N Ln M n � ifl em CD � � xH W m Lb a c Oya) c c� c` q - 01NNLn 0^O!^Q4702P N M 401- �srr Lb Lo a let V N o OO ��� LbaI V. c c T n N Ln 70OM+4 V O d' AF? r�cD a -W � H � Lbm U IO ++ c c Ln8aa ( Lbm U Lb e0 d m 1.0 N Ln �a-I n dM' � ri tM0 M Ln 4X- 4sr N a E Lb aB 8m 401) 15ag z d' O N Ln dM I m O 00 N M M M +V-1 OO -W N M Aft. tfr � N Lbfn N W M m O �L9aa co fNLn V-4 00 CA en co 0) Ln�� M a Lb 12 Lb Lz xU E W .2 R �c�cga N W m U N N M Ln CD d" d' ifi LLnn co v-1 <fr Lb T In V V M a 0 t0 O O L J H O 9 U O p5 O d 0 d C m 'C C� C _ C L � uou c L C 0 C I C I� M O Ic N E .� CL E°1OEE go1.-0g0 t u'S oB m Lnc°�(gQ n t0 N Ln M n � ifl em CD � � xH W m Lb a c Oya) c c� c` q - 01NNLn 0^O!^Q4702P N M 401- �srr Lb Lo a let V N o OO ��� LbaI V. c c T n N Ln 70OM+4 V O d' AF? r�cD a -W � H � Lbm U IO ++ c c Ln8aa ( Lbm U Lb e0 d m 1.0 N Ln �a-I n dM' � ri tM0 M Ln 4X- 4sr N a E Lb aB 8m 401) 15ag z d' O N Ln dM I m O 00 N M M M +V-1 OO -W N M Aft. tfr � N Lbfn N W M m O �L9aa co fNLn V-4 00 CA en co 0) Ln�� M a Lb 12 Lb Lz xU E W .2 R �c�cga N W m U N N M Ln CD d" d' ifi LLnn co v-1 <fr Lb T In V V M a 0 t0 O O L J H O 9 U CAPITAL IMPROVEMENT FUND Actual Revenues FY2007 rest $261,244 SPECUL SERVICES FUND Actual FY 2008 $63,056 Budgeted FY 2009 $22,500 Projected'; FY 2009 'r 1t ....�. Projected FY2011 $0 Projected FY2012 ; Revenues Actual Actual Budget Projected = Projected Projected FY 2007 FY 2008 FY 2009 FY 2009 1t FY2011 FY 2072 a $1,665,000 $1,898,11 governmental uses and Permits $3,394,385 $3,105,390 $2,681,000 $1,715,000�Y Inspection Fees $358,298 $345,174 $300,000 $300,00030 $300,000 $342,00 gas for Service Ada County Impact Fees $22,000 $22,000 $22,000 $22,000 $ $22,000 $22,00 Filing Fees $330,165 $230,636 $185,000 $130,000 $130,000 $148,20 Total charges for services $352,165 $252,636 $207,000 $152,000 $152,000 $170,20 $102,659 $36,365 $22,500 $25,000 r $20,000 $20,00 2 ellaneous $35,838 $213 TOTAL REVENUE W w =98090999 e o '� 000000N0N0 0 0 0 N Orf C, A O ��Opp t0 O O i0 Q O Q r r 0 0 0 0 0 0 0 0 O O CD 0 0 0 0 0 0 0 p� O 01 0 0 0 0 0 0 CA W O « O CA O O � OCpp p Op g p OH M pf C N O N vN tD /0 t N EI�D r O A r N CD tq of NN C' V- C', Oro Q M N CD 1 1 t O P r m CC W U, {D O r r —000 00 CD N- Of O! 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These changes were created based on the financial reporting needs within the city and the ability to report actual costs for specific departments. All below mentioned changes are subject to the Council's final approval. You will find a new department (1850) in your book that is to represent all costs associated with just the City Hall. In the end we decided to support both the 1840 -Other Government and 1850 -City Hall departments in the city's financial system. Costs are contained in one department in the General Fund and a portion is allocated to the Development Services and Enterprise' Funds. Employee Insurance Benefits that the City pays are calculated using prior year's actual data and current forecasts to determine the proposed benefit amount to budget for each employee. For FY2010 we have decided to lower the amount that we budget per employee by 6% based on the results of the insurance projection analysis. We feel this adjustment will cover projected premium increases to continue current insurance plans. FY2009 Benefits Budget per employee was $12,102.00. FY2010 proposed Benefits Budget per employee is $11,375.00. • Development Services Fund had a few changes to it in FY2010 as well. The • Planning Department now has three defined positions that will be paid via the General Fund on an annual basis. This new approach will relieve approximately Department of Financial Management & Planning . 33 E. Broadway Avenue, Meridian, ID 83642 Phone 208-888-4433 . Fax 208-887-4813 . www.meridiancity.org s Page 2 $260,000 annually from the Development Services Fund but will now be an on - is going expense to the General Fund annually. This new entry can be found in the Base Budget in the Interfund transfers. • The Enterprise (PW has 2 positions) and Development Services (Building has 1 position) Funds have 3 positions that are currently either Frozen and Unfunded or Frozen and Funded. • The Mayor's support staff wages have been included with other Administration city wages to be included in the Interfund transfer amount to Enterprise Fund on an annual basis of 15% of the total Personnel Costs. This change was needed due to the support that the Mayor's administration staff provides the Enterprise Fund. This new entry can be found in the Base Budget in the Interfund transfers. • Any FY09 Budget Amendments that get approved after June will not be reflected in the FY2010 Budget and will need to be discussed in FY2010 as a potential Budget Amendment. • The FY2010 Budget has recognized a total of 1.5% in salary increases to all employees' salaries in lieu of an annual merit. The increases will occur on October 1, 2009 (1% increase) and April 1, 2010 (1% increase subject to meeting revenue targets). The ongoing effect will net to a total of 2% in annual salary increases starting in FY2011. 40 • The General Fund will need to help offset the revenue shortfall in the Development Services Fund for FY2010. • The proposed Property Tax Revenue does take into account the 3% increase. We have calculated the potential loss of not taking the complete 3% to be roughly $515,000 of foregone revenue. • The Fire Departments OT budget was increased $200,000 to account for the additional OT expenses realized in FY2009. • Still Pending — The City Council Compensation Committee has made a recommendation for the future Mayor and Councilmember salaries. The final decision may increase the FY2010 personnel budget. We thank you for your time and if you have any questions or concerns regarding the FY2010 Proposed Budget, please contact us at your convenience. 0 :7 Department of Finance Vision The Storm Weather Gear IS Increased Financial Planning and Analysis OAF Operational Efficiency Technical Staff M Provision of Training So That All Departments Step Up and Understand and take Responsibility for the Financial Side of Their Operation 15 New Computing Capability and Tools 10 Commitment to Transparency and Ethics Finance Enhancement #1 Accountant- $78,874 ($39,437 split to Enterprise) Due to the growth and our current workload we need an additional professional accounting position. All of the City functions have grown considerably which increases the work load for the supporting departments. Parks and Enterprise have multiple construction projects and contracts on an on-going basis. External audit standards have changed dramatically in the last few years and require much more professional knowledge and work. Pressure from the public and the federal government is increasing the need for local governments to make detailed financial information available. The increase in size and complexity of the City's general ledger and fund structure requires more complex work to pull financial statements and perform internal audit functions. Currently we have three accountants (accounting manager, controller and chief financial officer) to handle all of the reporting, auditingg, budgeting, Investing, training, planning, forecasting and general ledger responsibilities. This person will do month-end general ledger entries, pull financial statements, track the fixed asset inventory, review checks before mailing, and do various internal audit duties such as tracking cash receipts, reconcile expenditure reports such as cell phone and visas, and perform cash counts and physical asset inventories. Additionally the City's grant revenue has increased to over a million dollars. Grants require a substantial amount of accounting time for tracking, coding, and report submittal in addition to requiring an annual audit on all grant transactions. This will enable the other two staff to spend time on financial planning, system improvements, financial reporting, City-wide training, transparency development, CIP, Fee model developments, and policy documentation. • • Department of Finance Vision The Climate M" City Government Growth ON Sophisticated Planning for use of Tight Resources 15 Complex Accounting Structure IN Regulatory Requirements Increased Public Scrutiny 40 Department of Finance Vision The Climate is City Government Growth A" Number of City employees has increased from 209.5 in FY2005 to a projected 335.5 in FY2010. 60% Increase GFinance Department is responsible for the training of all city employees on financial systems. EPayroll involves more than distributing checks once a month. Input of data, compliance with changing and ever evolving IRS regulations, reconciliation of payroll accounts, internal control, management of electronic timesheet and payroll data base, complex and time consuming Fire payroll calculations, Police Step plan, data download and manipulation for analysis and decision making, benefit reconciliation, entry, management, and vendor payments, and NOW City cell phone benefits. 0 O. 0 • Department of Finance Vision The Climate M City Government Growth MCity operating and personnel budget has grown from $255.6 million in FY2005 to $44.8 million in FY2010. SComplexity of budget and financial reporting — for example all personnel and cost allocations have to be done manually. Number of departments have increased as well as number of general ledger line items. OFixed Assets have increased 75% from FY2005 to a total of $263,421,659. Tracking Fixed Assets and data entry is a manual process that continues to require more time and effort from all individuals. OFinancial Analysis is as important now as ever before in today's economy. Continued development of new analytical tools to assist in future analysis and fee development. Department of Finance Vision The Climate Complex Accounting Structure • Regulatory Requirements • Increased Public Scrutiny Year Close and Audit Last two years under new audit standards — Statement of Auditing Standards #101-111 - Risk Assessment Standards — Sweeping changes for the conduct of audits by requiring auditors to obtain a more in-depth understanding of an entity in order to better identify risks of material misstatement of financial statements. — Extensive testing and analytical analysis, client prepares all reports, any error becomes one of the three levels of findings. 3 CJ What We Do Now Technical Accounting Staff (CFO — Controller — Accounting Manager) — Grants - Time intense accounting —wise * 17 point financial policies response for SAMSHA grant with one week notice — ACCURACY AND INTERNAL CONTROL CRUCIAL WITH FEDERAL GRANTS — in accordance with Circular A —102 Grants and Cooperative Agreements with State and Local Governments. Will have single audit next year — Federal Inspector General Audit — NO FUN! — Six new grants in the works for submittal. Utility Billing Enhancement #2 $1,500 • Withdrawn 0 Ell f EXECUTIVE SUMMARY City of Meridian — Budget Trend Analysis Quentin Howard The City of Meridian, incorporated in 1903, has experienced exponential growth (549%o from 1990 to 2007) and is now the third largest city in Idaho. The City uses a General Fund and a Capital Projects Fund, along with an Enterprise Fund that provides water and sewer services. The City Council is responsible for the annual budget. The City has a very detailed and organized budgeting pros which eliminates or minimizes many of the problems found in other budgeting environments. A Budget Development Manual and a Budget Revenue Manual provide detailed instructions for the Departments to follow. Two analytical techniques, one that adjusts for the effects of inflation, and one that projects a trend based on past performance, were used in this paper to analyze the 2003 — 2008 actual audited financial results. The deflation analysis, "Nominal to Real Dollars," showed that the City's increases in General Fund revenues and expenditures, when adjusted for inflation, were generally less than the percentage increase in nominal dollars. Trend analysis of the General Fund and Enterprise Fund sbowed trends that tracked consistently with past performance, although future growth may be less than projected due to a slowing of the residential and commercial building that fueled the rapid growth of 2003 — 2006. The Capital Projects Fund, due to the large "spike" for construction of the new city administration building, does not produce a trend analysis that would be sustainable. Instead, the capital needs projected by the City tend to be straightline of approximately $15 million over the next few years. Overall, the City of Meridian has developed an efficient budgeting system that follows the formal budgeting theory defined as "Incrementalism." The City has maintained a solid financial base while continuing to provide for the expanding base of services required by the extreme growth rate of the past twenty years. Trend Analysis City of Meridian By Quentin Howard PubAdm 504 May 11, 2009 I Table of Contents I. Introduction......................................................................................................................... 3 A. Overview....................................................................................................................... 3 B. Legal Authority and Relationships................................................................................. 4 U. Budget Process.................................................................................................................. 5 A. Fund Types.................................................................................................................... 5 C. Dealing With Changes and Future Events...................................................................... 7 D. Pressing Needs............................................................................................................... 7 III. Analysis............................................................................................................................ 8 A. General Discussion......................................................................................................... 8 B. Two Analysis Methods................................................................................................... 8 C. Government Fund Expenditures by Type.....................................................................10 D. General Fund Expenditures Analysis — Nominal to Real and Trend Analysis ................10 E. Capital Outlay Fund — Nominal to Real and Trend Analysis.........................................11 F. General Fund Revenues by Source...............................................................................11 G. General Fund Revenues — Nominal to Real and Trend Analysis....................................12 H. Proprietary (Enterprise) Fund.....................................................................................12 I. Enterprise Fund Revenues — Nominal to Real and Trend Analysis...................................13 J. Enterprise Fund Expenditures — Nominal to Real and Trend Analysis .............................13 IV. Discussion.......................................................................................................................13 A. Budgeting Type, Relationship to Theory, and Discussion..............................................13 B. Decision Tools and Analysis.........................................................................................16 C. Future Growth or Decline............................................................................................17 D. Past or Future Reactions to Change.............................................................................17 V. Conclusion......................................................................................................................18 VI. Acknowledgement...........................................................................................................18 VII. Tables and Figures..........................................................................................................19 VIII. End Notes....................................................................................................................... 32 E Trend Analysis City of Meridian I. Introduction A. Overview The City of Meridian, Ada County, Idaho, was incorporated in August, 1903.1 Its character as a small farming community continued from its origination until approximately 1990, when its population was still under 10,000. However, from 1990 until the present, Meridian has experienced an exponential growth in population that has changed both its character and appearance. From 1990 to 2007, the population grew from 9,956 to 64,6422(see Figure 1), an increase of 549%, and is now Idaho's third largest city3. Despite area slowdowns in housing and jobs, the population of Meridian continues to increase, with an estimate of approximately 75,000 in 2009 a With the increase in population, farms and fields have given way to large subdivisions, many with amenities such as water features, rolling landscaping, and walking paths. Farm vehicles and feed stores have largely disappeared. Meridian now has several areas of new commercial and professional developments. St. Luke's has a major hospital located in Meridian. New bank branches and medical offices have come into the city. Restaurants and retail establishments have sprung up along major corridors such as Fairview Avenue and Eagle Road. Road improvements by the County and State, such as the new Locust Grove freeway overpass and widening of major corridors, have helped to absorb the increased traffic flows. The city structure has kept pace with the growing residential and business segments. In order to continue to provide acceptable levels of service, police and fire departments now have more personnel as well as new facilities. A new three-story city hall building was completed in 2008. Parks have been added and other city services such as water and sewer are also being upgraded. 3 B. Legal Authority and Relationships The State of Idaho is divided into counties, under Idaho Code § 31.101. The process for city incorporation, through application to a board of county commissioners, is provided in Idaho Code §50.101. A petition signed by at least 125 qualified electors of a "village" or other "unincorporated contiguous area" must be presented to the county in order for the city to be incorporated.5 The City of Meridian is one of six cities in Ada County.6 Boise is the state capitol as well as the largest city in the state. Others are Star, Eagle, Garden City, and Kuna. Meridian is located on the western edge of the County on both sides of Interstate 84. This puts Meridian, the third largest Idaho city, along the I-84 corridor between the #1 largest (Boise) and the #2 largest (Nampa). C. City Government Structure and Legal Authority The city operates under a Mayor and Council form of government. The Mayor, elected for a four year term, is the chief administrative official. Under City Code § 1.6.3, the Mayor has the following responsibilities and duties (listed in part): • Preside over meetings of the City Council. • Communicate & recommend to the City Council such measures as, in the Mayor's opinion, may tend to the improvement of the finances, protection, health, security, ornament, comfort, and general welfare and prosperity of the city. • Sign contracts for the city. • Sign or veto any ordinance passed by the council.$ The City Council is designated as the legislative and policy making branch of the City, under City Code § 1.7.3. Duties of the council include (in part): • Pass ordinances, resolutions, and oversee the improvements and work done for the city. • Nominate and confirm a council member to be the commissioner of the Police, Fire, Parks and Recreation, and Public Works departments. • Arrange for the annual audit of financial statements. • Prepare the annual city financial budget.9 4 The city publishes two documents (also available on the city website) that are extremely significant in the budgeting process. The first is a Budget Development Manual which conveys instructions to the departments, along with the various internal forms and examples of how to fill them out. The Budget Manual also includes a Calendar of Events which provides critical deadlines that must be met by various players in order to produce the budget in a logical sequence and on time. Figure 3 shows the FY2010 Calendar (Note: this is not yet available on the website, but was provided to me at the interview; the FY2009 Calendar can be viewed on the website). The second document, the Budget Revenue Manual, provides a detailed discussion of current economic and local factors that are expected to affect the city and its budget. Trends and projections are provided on topics such as population, housing starts, property taxes, and building permits. The amounts of prior years fund revenues and expenditures are presented, along with preliminary budget estimates and projections trending out for two more years. Explanations are provided for the state revenue sharing process and other sources of revenue. A brief synopsis of the budget process is as follows: 1. Finance Department prepares a baseline budget based on the costs necessary to maintain current service and activity levels. Prior year one-time expenditures, capital expenditures, and other special items that occurred in the past year are removed from base expenditures to arrive at this starting point. 2. Departments, working with their City Council liaison, prepare any new personnel requirements and start work on their budget. 3. Departments prepare standardized forms to justify any increase over the baseline amount for personnel, replacement capital items, replacement computer items, other one-time items, reallocations of existing dollars, and carry -forward items. The amount of revenue available for these items will be estimated revenues minus the base budget. 4. Finance returns completed personnel base budgets to the departments. 5. Personnel budgets, capital budgets, and increases (enhancements) are prepared by the departments. 6. Directors review their budgets with the Mayor, finalize the budgets, and prioritize their enhancement requests. 7. Draft of "Mayor's Approved" budget goes to City Council & Mayor's office for review. 8. Departments make presentations to Council and Mayor to explain & justify their budgets. 9. City Council reviews and makes final recommendations. 10. Public notice is given, followed by a public hearing. 11. Budget is approved by Council and published. D An important factor in the budgeting process is the role played by City Council members. In addition to being responsible for the overall budgeting process, City Council members are very involved at every step of the budget process. A City Council member is assigned as a "liaison" to every Department, and works with them in the process of developing the budget. In this way, a Council member has input with every department prior to the department's presentation to the Council as a whole. This is a big step toward eliminating "surprises" for the Council at review, by keeping the entire formative process somewhat aligned with Council philosophy. C. Dealing With Changes and Future Events The city is conservative in its estimates of future income and includes change scenarios in its. budget discussions. The FY 2008 Revenue Manual had narratives regarding possible slowdowns in building permits and the housing market, along with possible reductions in state revenue sharing. A deficit in Proprietary Fund revenues was discussed, with fee increases predicted for FY 2009 to correct the shortage. The FY 2009 Budget Revenue Manual was much more specific. Revenue sharing from the state was budgeted to be less than what was received in 2008, and then straight line for FY 2010 and 11. Some impact fees were projected to be lower, and Development Services fees were projected to be flat. In addition, most fund balances were expected to be smaller than past years, indicating that some of the "savings" from the past would be needed to carry the city through a period of slowing economic growth. D. Pressing Needs Meridian has an ongoing need for capital improvements. With a new fire station, police station, and city hall all completed within the last three years, the city has been keeping up with major growth needs. In addition, there is no appreciable debt carried over from any of these large projects. However, the city is projecting $69 million for FY 2008 — FY 2011 for Waste Water Treatment capital improvements as part of its Capital Improvement Plan13. A new treatment plant will be added, along with upgrades to the 7 existing plant to keep up with anticipated demand. Another $3 million is projected for the Police Department in FY 2011. It seems reasonable to expect both new and replacement capital costs to be a continuing need in light of the growth that has occurred for Meridian. III. Analysis A. General Discussion For analysis purposes, revenue and expenditure amounts were compiled from the city's published audits and not from budget documents. This created some difficulty with comparison to budgeted amounts because different categories or descriptions are used in the budgets. The budgets generally have more detail and more line items than the audited statements. Another difficulty in comparison arises because Meridian has received large donations of land and other contributions from developers. These are included in the audited revenues and expenditures, but are not included in budgeting. These donations have contributed large amounts to the city's net worth. Still another area of difference arises from grants. Meridian receives grant money from various sources. One example is a federal grant for purchase of police protective vests. Another example is Community Development Block Grant funds. There is no designated grant writer on the city staff, but each department is authorized to write its own grant requests. Once a grant has been approved and/or received, the Finance Department will track the funding and expenditures of the grant for the department. This funding is also included in the audit, but once again, is not requested or shown in the budget documents. Grant money is "over and above" everything else for the receiving department. B. Two Analysis Methods Two common analytical techniques used in budgeting involve adjusting for the effects of inflation and projecting a future trend based on past performance. In this paper, both techniques are used in the analysis of expenditures and revenues in the following sections. 0 Comparison of expenditures (or revenues) from one year to another can potentially lead to incorrect conclusions. An increase in expenditures might seem to indicate that a department is purchasing more goods or services than in the prior year, while in reality the increased dollar amount might have purchased the same, or possibly less, goods and services after adjusting for the effect of inflation. The method of using an implicit price deflator, as described and illustrated in "Adjusting for Inflation When Comparing Revenues or Expenditures,"14 is useful for determining if increases are just keeping up with the declining purchasing power of nominal dollars or if there has been an actual increase in real purchasing power. By using a deflation factor, one can assess whether the change reflects a real increase. Using commonly available indices, such as the Consumer Price Index (CPI) or the Implicit Price Deflator (IPD), one can adjust current dollars to constant dollars based on the "base year." Using the deflator index in Figure 4, one can calculate that $1.29 is required in 2008 to buy the same amount of government goods and services that could be purchased for $1 in 2003, the base year. Or, to look at it another way, revenue of $12,962,300 would be required to have the same purchasing power in 2008 as $10,000,000 would provide in 2003. Government entities need to be aware of this "Nominal to Real Dollars" comparison for two reasons. One reason is that it is a useful tool to help in budgeting for resources that will be adequate to provide the same levels of service as in the past. A second reason is that it can be useful in explaining to constituents or other players in the budgeting process why changes in current dollar amounts are not necessarily "increasing the budget" in terms of real purchasing power. The other analytical method used in this paper is a trend analysis, using a "least-squares" method, based on a time series. This method uses a statistical process of taking a series of data over time, adjusting it for the trend, and making a future forecast based on the past trend. 15 This type of trend can E be reliable if the future continues in the same manner as the past, but caution and good judgment must be used when applying this method. As Liner points out, "Projecting a trend line into the future involves the implicit assumption that the underlying trend will not change and that cyclical or irregular factors will not cause future revenue to depart significantly from the trend.,,16 C. Government Fund Expenditures by Type Government fund expenditures include general fund expenses and capital outlays. The general fund accounts for the general operations of the city government, except for other expenditures specifically included in the capital projects fund and the enterprise fund. The most significant expenditure in the general fund is for Public Safety (see Table 1), which has experienced steady growth that would be expected in order to provide services for the expanding city. The capital outlay fund, along with some smaller capital outlay expenditures, shows a large increase in FY 2008. This was for payments on the new city administration building. Total of expenditures by type for both government funds can be seen in Table 1. D. General Fund Expenditures Analysis — Nominal to Real and Trend Analysis Expenditures in the general fund increased year over year at a rapid rate from 2003 to 2006, as shown in Table 2. Following that period of double-digit increases, which matches the trend of the building boom in the valley, the growth slowed to a more modest rate of approximately 6%. The change in real dollars, as seen in both Table 2 and the chart in Figure 5, is the same or less than the change in nominal dollars in four of the five years. The trend analysis (Figure 6) shows a very straight line out over the next four years, which would appear to logically match expectations that the general fund, in a large and still growing city, will also tend to grow in a steady, continuous pattern. 10 E. Capital Outlay Fund — Nominal to Real and Trend Analysis The capital outlay fund does not demonstrate the same gradual and moderate increase as seen in the general fund. Instead, after several years of accumulating and not spending capital outlay funds, the city embarked on a series of capital projects starting in 2006 which have resulted in a sharp upward trend. The administration building project in 2008 created a large spike, as can be seen in Table 3 and Figure 7. This pattern, with large changes either up or down, does not lend itself to useful trend analysis. As seen in Figure 8, the trend line smoothes out the cyclical shifts, but does not represent what one might anticipate as a pattern of capital outlay spending. One would expect more of a step change pattern, with periods of less spending as well as spikes for large projects, in an analysis of this fund. The capital outlay "revenues" were not addressed in this paper because the primary source is "Transfers In" from the general fund, along with some smaller amounts from impact fees and interest. F. General Fund Revenues by Source Sources of the revenue in the government fund are shown in Table 3. The largest source of the tax revenue is from property tax. Also included in the tax revenue is state revenue sharing of the sales and liquor tax. Payments from the Meridian Rural Fire District are included in the intergovernmental revenue. Other sources include franchise fees from natural gas, cable, electrical, and recycling providers; licenses and permits for both residential and commercial developments; parks and recreation fees; impact fees for parks, police, and fire services; fines (the City retains 90% of all fines collected); interest income; and, finally, some smaller miscellaneous sources. 17 As can be seen in Table 3, almost half of the general fund revenue in FY 2008 came from taxes, and most of that in turn is from property taxes. Meridian is limited in the amount by which they can increase the portion of their budget funded by property tax under Idaho Code § 63-802, the law often referred to as the "3% cap." Despite the cap and increases in the homeowner's exemption amounts, Meridian has continued to receive more revenue each year from property taxes. Meridian's levy rate has actually 11 decreased over the last four years, but the total taxable value of property within Meridian's levy district has increased significantly. The relationship between the decreasing levy rate and the increasing tax base can be seen in Figures 9 and 10. In addition to new construction, the taxable property base can also be increased as the City expands its boundaries by annexation. Meridian increased its taxable base value of properties by $104 million through the annexation process in FY 08.18 G. General Fund Revenues — Nominal to Real and Trend Analysis A comparison of nominal to real dollars for the general fund revenues, shown in Table 3 and Figure 11, shows that after large increases in FY's 2004, 05, and 06, the increases for FY 2007 and 08 were much lower. In addition, the change in real dollars was generally less than the increase in nominal dollar revenue, indicating that the actual real purchasing power of the increases was not quite as great as one might initially think from viewing the nominal dollar increases. In FY 2008, for example, the nominal dollar increase was 9.5 %, but only 9.0% in real dollars. The trend analysis shown in Figure 11 projects a trend line that fits very tightly with the prior years and shows what one would assume would be a logical progression of revenues in nominal dollars. Despite relatively small dips below or increases above the trend line, the direction of this trend line should be relatively stable. H. Proprietary (Enterprise) Fund A proprietary fund, in government accounting, is a fund wherein user fees finance the activities. It is more like a private business in that users pay for the goods and services and those fees are expected to cover the costs of operation. Meridian has one fund of this type, an Enterprise Fund that collects revenues and pays for the operation of the water and sewer facilities of the city. 19 12 In addition to the primary activity of selling the water and sewer services, the hookup fees that developers and homeowners pay are also a substantial part of this revenue source. Within this fund, overall revenue has decreased from FY 2006 to FY 2008 and the composition of the revenue sources has also changed rather significantly. Connection fees have dropped drastically because of the slowdown in construction. On the other hand, with a broader base of new users connected over the last few years, the revenue for the actual services has increased. On the expenditure side of the enterprise fund, the largest category is for personnel services. Depreciation, a non-cash expenditure, ranks second, followed by other services and charges, supplies, and utility expenses.20 I. Enterprise Fund Revenues — Nominal to Real and Trend Analysis The enterprise fund revenues grew at a rapid pace, 19% and 23% in nominal dollar increases for FY 2004 and 2005 (see Table 5), then declined in FY 2006 and started a slower growth trend in FY 2008. These results can also be seen in the chart in Figure 13. The trend analysis (see Figure 14) shows a continuing increase, but at a rate more closely aligned with the results from FY 2006 through FY 2008 and not the sharp increase seen in the earlier years. I Enterprise Fund Expenditures — Nominal to Real and Trend Analysis The enterprise fund expenditures show virtually the identical pattern as the revenues, which is to be expected given the nature of the fund type and the fact that revenues are expected to cover the expenses. Actual results can be seen in Table 6 and Figures 15 and 16. IV. Discussion A. Budgeting Type, Relationship to Theory, and Discussion The budgeting method used by the City of Meridian illustrates the classic budgeting technique of "Incrementalism." The incremental theory of budgeting is generally attributed to the early research 13 work of Aaron Wildaysky.21 The general premise of Incrementalism is that an agency accepts past budgets as acceptable, and then justifies any new or incremental additions to the new budget. Incrementalism is defended by Swain and Hartley as a system that offers "reasonable" perspectives in four different ways: • Generally descriptively accurate. • Analytically logical. • Reasonable as a normative perspective. • Generally empirically correct. 22 Swain and Hartley also point out that even critics of Incrementalism have found that, in general, changes to budgets and appropriations are often less than 30% a year. 23 Their point is that even those who don't subscribe to Incrementalism end up budgeting by small, incremental amounts. From a practical perspective, an incremental approach makes sense for many agencies because it assumes that what has been acceptable in the past is still acceptable, without incurring additional costs of analyzing those past amounts. It seems logical to not spend time and money analyzing what are often routine and standard costs that would be expected to continue. The base amounts in Meridian's budgeting process do not include any one-time allocations from the previous year, so a department is prevented from building up its annual general budget based on special events from the year before. Incrementalism can be viewed as an efficient system, particularly for a smaller agency. Meridian has only one budget analyst, who works in conjunction with the Mayor, City Council, department heads, and city finance director. By not having to review all the past routine budget items, the budgeting players can focus on "relatively small increments to an existing base."24 Another advantage of Incrementalism is that it is generally seen as a fair method of allocating the resources, in that no one department loses out on its established base amount.25 This allows managers to focus on the new priorities while at the same time knowing that their primary base is preserved. In addition, each department would generally expect to get some portion of any new allotments under the theory of Incrementalism. 26 14 Incrementalism also appears appropriate for the situation Meridian has been in for the past few years, wherein each year has seen increased growth in revenue bases and increased need for services. In that environment, it seems logical that at a minimum, what was done the previous year has to be provided again in the coming year. It is possible that there will be a point in the future when Meridian may have to adjust its methods or use additional analytical tools for their budgeting process. Should there be a time when growth stops, or declines, the revenue stream may not be sufficient for even the prior year's base amount. In the current system, there does not appear to be a procedure for accountability or a formal efficiency analysis of ongoing programs. Although in the current environment it is reasonable to assume that the operating departments are both efficient and accountable in their use of funds, in time there will likely be a need to dig deeper to make sure that inefficiencies and unneeded costs have not been slowly assimilated into the accepted base. As the city's growth slows over time, and it is reasonable to expect that scenario will eventually occur, the city may find it necessary to probe and look at the results that have accumulated over the years. Questions such as "Why does that department really need thirty people," or "What is the purpose of this $50,000 continuing line item expenditure" may become more pertinent in the future than they are in today's growth scenario. In the budgeting time line discussed earlier (see Figure 3), it was noted that both Council members and the Mayor are involved in discussions with department heads throughout the process. This is a very proactive approach to communication with department heads and keeps the budgeting essentially "on track" from the beginning. The ongoing communication continually helps to guide and shape the budgeting process so that cooperative decisions are made from the beginning, and thus avoiding the inevitable conflicts and debates that would arise at the end if the departments did not know what the expectations of the Mayor and Council were. Conversely, the department heads are also provided with 15 more opportunity for dialogue to present their wishes than if their first contact with the Mayor and Council was at a meeting much later in the process. B. Decision Tools and Analysis Meridian has developed a sophisticated and very structured process based on a program approach to assist departments in evaluating and justifying their needs for additional funds, projects, or personnel. The WHAT, WHO, and WHY process described in their Budget Development Manual details the steps that must be followed in order to have an additional program need approved. The four steps are: • Identify the needs or problems that make the program necessary, and identify the goals and objectives. • Evaluate the program to determine if it is meeting its goals, or making progress towards them. • Identify financial needs. • Evaluate the results and effectiveness of the financial expenditures.27 To assist in this process the finance department has prepared a series of Excel worksheets, with examples, to assist departments with their requests. There are seven forms, and they are listed in this priority sequence: • E 100 - Enhancement Forms • G100 - Replacement Capital • G200 - Replacement Computer Equipment • G400 - Non Standard Adjustments • G500 - Line Item Reallocations • H 100 - Revenue Enhancements • I100 - Carry Forward Capital Projects28 There are many advantages to a system such as this. It provides a standardized process for all departments which makes it easier to compare one department's requests with another. It eliminates many issues relating to communications because the forms are very clear and consistent — if there is a need for additional personnel for a project, there is a place to request it, along with appropriate salary costs. The forms serve as a checklist for the departments so that everything should be included in the first attempt, saving Finance having to call back and say "we need this or that additional information." 16 The forms require a clear, concise presentation for why the enhancement is needed. Information is also provided for those doing the evaluation because there is a section titled "What are the consequences of not doing this request?s29 This provides information for the Mayor and City Council to help assist them with prioritization of projects based on their perception of value of the project to the community. C. Future Growth or Decline My expectation for the future of Meridian is for continued growth, although at a slower rate due to the current local and national economic slowdown. The city has created an infrastructure supportive of increased growth and has set standards for development of both commercial and residential areas that provide for attractive and desirable developments. As the economy once again begins to pick up, Meridian will continue to benefit from the strong foundation that has been set in place and systems that are capable of handling increased growth. The city's leaders have demonstrated competence and ability in moving Meridian through the past ten years of particularly fast growth. There is still a mindset of conservative and responsible money management for the City's funds, as demonstrated by saving up enough to pay cash for a $17 million administration building. There is no significant debt for the city at this time, which is an enviable position to be in at the start of an economic slowdown. Meridian has, at least to this point, not had to lay off employees as has been announced for both Boise and Nampa. That is another positive sign that expenses are being watched and the city is fiscally sound. D. Past or Future Reactions to Change Meridian's leaders have demonstrated that they are monitoring both current events and looking ahead to possible future developments. For example, in the FY 2008 Audited Financial Statements, under the FY 09 Budgetary Considerations in the Management Discussion Section, there were these forward-looking statements: 17 • "The residential building slowdown that marked FY07 worsened in FY08 and the City predicted it would continue to worsen into FY09. The City planned a Conservative budget for FY09." • "The City has to closely monitor the Development Service Fund whose revenue streams are completely dependent on building activity." • "....statutory limitations on property tax collections and decreases in income generated by growth will likely mean that the increase into FYI will be slight." • "For FY09 the fund (proprietary fund) is looking at rate changes to support increased costs ... "30 As these statements indicate, the city is very aware of potential pitfalls and is working in advance to plan adequately for them. Another example is the prompt action taken to correct a shortfall in the enterprise fund. As seen in Table 7 and the accompanying Figure 17, the enterprise fund expenditures started to closely approach revenues in FY 2005, and then surpassed revenues in FY 2008 resulting in a shortage of $125,000. In early 2009, an increase in both the base fee and the usage fee for water was approved by the Council. This is expected to change the trend and put fund revenues in excess of expenditures. V. Conclusion In conclusion, the City of Meridian has an efficient budgeting process in place that utilizes an incremental approach. The City Council and Mayor take a leadership role throughout the budgeting process. The budgeting process has been successful in helping the city provide services to the fastest growing city in the state of Idaho. Meridian has demonstrated financial strength and fiscal responsibility, both of which are based on a successful budgeting program. VI. Acknowledgement The author would like to acknowledge and thank Mr. Todd Lavoie, Budget Analyst for the City of Meridian, for graciously granting time for an interview during a busy part of the budgeting cycle. His help in understanding the process and documents used in the City of Meridian budgeting program was of invaluable assistance in the writing of this paper. 18 P, • 0 FY201 0 Budget Presentation Finance Department Chapter 9 CITY FINANCES o 1-9-3: FISCAL POLICY; BUDGET: 0 A. Budget Policy: • 1. The purpose of the budget is to help the public understand the costs of services and how they relate to the services provided by the City. This budget shall also serve the urpose of advisin the City Council and Mayor about the finances of the City and assist the City 'uncil in determining what they desire to do for the Crit' and in setting itsoals. The City Treasurer shall meet the orovislons of Idaho Code section 50-208, and shall be custodian of the ccordahce with revenues as o D. Annual Budget: • 2. The tentative budget as prepared by the City Treasurer shall be advisory and not binding on the City Council. Only upon passage of an appropriation ordinance shall such budget become binding. 1 z Article E. CHIEF FINANCIAL OFFICER o 1-8E-2: DUTIES: •E . Budget Requests: The chief financial officer shall be responsible to analyze budget requests for compliance with appropriate rules, regulations, policies, procedures, budget, and capital improvement plan. •F. A nnual Budget Amendment: The chief financial officer shall develop, with the necessary staff, the annual budget amendment, including gathering all data, analyzing results and presenting a final report to the mayor, council and the public. (Ord. 08-1380, 9-9- 2008) 0 . t Chapter 7 CITY COUNCIL 1-7-3: DUTIES: The members of the city council, the legislative and policy making branch of the government of the c1�y, shall devote so much of their time to the duties of their office as an efficient and faithful discharge thereof may require. They shall attend all ssmm f the councnlesslawfully excused there from, and duties by thnature oftheir office they should reasonab luch as theas�sln o�fordinances resolutions, and the of Improvents and workond�flte city according to the f committeupon whichthey may severally be appointed. § 1-701) 0 1-7-6: ASSIGNMENT OF DEPARTMENT COMMISSIONERS; DUTIES AND TERM: o B. Duties: • 1.b. To assist his department to process and develop a budget for the ensuing fiscal year. • f. Direct his departments short and long term budget planning activities. • 74 • FY2010 Budget o City Council has the overall responsibility of approving the proposed budget. o Decisions that are made must take into consideration the laws set forth by other governing bodies that the City must report too. o The budget must reflect ethically the best interest of our citizens while maintaining our legal and compliance responsibilities to the best of our ability. o Please ask questions of the City staff on any issues. The proposed budget is a cooperation of all departments with input from many sources. FY2010 Budget Process and Procedures o January —Finance prepares the preliminary budget for the Directors. o February — Directors review the budget delivered in January to determine the base budget. o March — Meetings are held between the Finance department and all city departments to finalize the base budget. All enhancements are submitted to the Finance department. Departments meet with council liaisons. o April — Personnel budgets are reviewed and finalized by the departments that will be included into the base budget. o May — Mayor and departments review the base budget that was a result of the work performed from January to April. o June — First Budget Draft is submitted to the Mayor for review. o July — Public workshop is held to discuss the proposed budget to Council. o August — Public hearing for proposed budget o September — Public hearing to approve proposed budget 3 • •f FY2010 Budget Process and Procedures o "In conclusion, the City of Meridian has an efficient budgeting process in place that utilizes an incremental approach. The City Council and Mayor take a leadership role throughout the budgeting process. The budgeting process has been successful in helping the city provide services to the fastest growing city in the State of Idaho. Meridian has demonstrated financial strength and fiscal responsibility, both of which are based on a successful budgeting program." • (City of Meridian — Budget Trend Analysis Paper; Quentin Howard — Grad Student at BSU - 2009) • FY2010 Budget — Changes in approach 0 1840 — City Hall & 1850 - Other Government o We now track City Hall Expenditures independently of Other Government. o General Fund will be requested to fund the Development Services shortfall for FY2010. o Proposed property tax revenue does include the allowed 3% increase o FY2010 includes a 1.5% salary wage increase for all employees. L� 4 • � k} FY2010 Budget —Changes in approach o Mayor's Dept —15% Personnel support staff to be allocated to Enterprise Fund o Development Services Fund is requesting the General Fund to finance three full-time positions. o Fire Department has increased their OT budget by $200,000. o Enterprise Fund has three positions either Frozen and Unfunded or Frozen and Funded. is FY2010 Budget Presentation o Departments with no enhancements • City Hall • Economic Development • Street Lights • Planning • Building • Human Resources and Legal • Mayor's Office • Utility Billing • 5 11 o Questions? 1�1 • INFORMATION TECHNOLOGY HUMAN RESOURCES CITY ATTORNEY Fiscal year 2010 * Budget Presentation July 2, 2009 G9,i'MlOS BILL NARY * City Attorneys HR Director TERRY PATERNOSTER * IT Manager (AVE IDIZ IAN* Current City_AttorneyiHR/IT Stat' Bill Nary - City Attorrry/HR Direct Terry Paternoster- IT Manager Michelle Albertson - Legal Services Support Administrator T'ed Baird - Deputy City .Attorney Keith Danielsen - IT Network Specialist Emily Karts - Deputy City Attorney Brad Lloyd - IT Network Support Tech I �� Chris Lloyd -- Office Assistant Jack alcCorkel - IT [in— l ,Andrea Pogue - Assistant City Attorney Q 1 Cnstai Ritchie- HR AreIwsUTrainer Will Shannon- IT Int m Jennifer Shaw - Admin .Assistant 1 Alike Tanner - Scrucr Dauhase Developer David Tiede - IT Systerrs Adntinistrator z currml wararcies C�(�E IDIAI� D ENHANCEMENTS ��QTE IDIAI� , IT APPLICATION DEVELOI', ( Cost $87,611 Current IT project list is over a year long. This position will be tasked with current needs in addition to the website maintenance. C'YI EI,IDIAN INTERN WAGES Cost $15,540 IN Our award winning intern program, has not had an enhancement since it was implemented. With the changes in the minimum wage we must be competitive with the marketplace for the quality of students we are seeking to hire. This will allow us to hire interns at $10.00 an hour. FIVE GUYS' o' FA IDIAI� FAMULS AJR6ERS end FRIES INVENTORY RFID SYSTEM Cost �h 15, 100 This will allow the City to move to Radio Frequency Identification and eliminate the asset ,,,', E IDIAN= SAN Cost $44,000 This is to purchase a second Storage Area Network (SAN). This will double our current capacity that is being squeezed by the needs of Laserfiche, GIS, and Hansen ----- ----- - Moving On... O tb OROSECUTION AND POLICE SERVICES CONTRACT Office of The City Attorney cR�E ID 0�,JE IDIAI`: HUMAN RESOURCES WAGES AND RECOMENDED INCREASE HR recommends a 1% across rhe board increase for all employees on October I s and an additional I% in April of 2010' ('.'P-1 —il _..' a,. r) ro A-1 — "./V) Current Wage scale for Police and General Employees to remain the same for FY 10 October btcrcax for employees that are not on a Performance Inilwovement Plan or in the lnuroductory Period of Ernploytnmt. 1 % maybe granted after the period April increase is dependant on reaching certain target valves in revenue for the budget for proper tax, revenue shanng, and building permits OUE IDIAN EMPLOYEE BENEFITS RECOMENDATIONS BI ue Cross - 9.9% increase ..a add-on for oral contraceptives Blue �.. Cross of Idaho i Maintains all current benefits without any change 0 c�1E IDIAN Options Consid, 6.6% increase — Changed the co-insurance and hospital coverage 6.5% increase - Changed the individual and Family deductible to $500/$1000 3.3% increase — Changed the co-insurance, hospital overage, the individual and Family deductible to 500/$ 1000 0 O�JE IDIZ IAI�, Additional Benefits Delta Dental — 7-9% increase !Still a WinigBnu/ runztb—t Willamette Dental — 6.5% increase nrn <n� Ani lb -0 VSP— 0%! United Heritage STD/LTD/Life Insurance — 0% for ' — 3% increase wery Benefits — Flex Spending — 0%! 0 C�f E IDIAI� Questions??? C��E IDIS IAI� , Change look of website New RSIMSON Victim Witness Release and Final Import Release JGONZALES Calendar -an Outlook calendar would be helpful if it auto -populates new court activity on a case; however, we would also ask that it also automatically delete any court activity canceled. It would also be nice if each victim witness coordinator could select whether or not they would Victim Witness like this feature. Enhancement JGONZALES assigned witness coordinstor to receive an email notification of the Victim Witness changes made by another user Enhancement JGONZALES Victim Witness query by telephone number Enhancement JGONZALES Victim Witness Show Detectives First Name Enhancement JGONZALES Add a field to assign a victim witness coordinator to the case as it Is with (Victim Witness detectives Enhancement JGONZALES create a pan time timecard with 2 columns, Volunteer Emergency Calls (VEC) and Volunteer Meeting hours(VMTGS)? This would also be a Timesheet separate employment type named Volunteer within the Fire Department. Enhancement BHOHLER online form for bum permits that have an acknowledge button and also Include a numbering system. Import outside data Into our website on a ONLINE FORM AND IMPORT OUSTIDE WEBSITE DATA TO OUR WEBPAGE designated page (weather, wind, etc.). New MNIEMEYER Timesheet TIMESHEET ADD CELLPHONE REIMBURSEMENT APPROVAL Enhancement RCUNNINGHAM parties can fig in their email and receive notice when a new job in those Employment App departments opens. Enhancement NPOWERS Planning App Fix System so it doesn't allow duplicate users Enhancement MTANNER online pay stub and W2 online pay stub and W2 New RCUNNINGHAM With the current Laws, government agencies are requested to make our gerreral ledger detall available to the public at any time. With that, we will need to either buy or development a program that can pull data from our MIP database and display It an the Internet Our goal for such a program TRANSPARENCY REPORTS DATABASE would be within 18 - 24 months given funding. New TLAVOIE POSITION SLOTS CREATE A WAY TO VIEW AND ACTNATE DEACTIVE SLOTS Enhancement TLAVOIE TEXT VERIFICATION BOX TO MAYOR AND COUNCIL EMAIL FORM TEXT VERIFICATION BOX TO MAYOR AND COUNCIL EMAIL FORM Enhancement RSIMSON I would like the help of the IT department to start looking Into budget software. There is no hard deadline on this but if something could be finished in two to three years, that would be great. I would like to know it Budget Software it would be cheaper and easier to write our own software as well. New TLAVOIE I ward a database that can store a6 of our password, so that users can only see the passwords they have permissions to see, rather than all of Password Database them. New TPATERNOSTER Scrolling Data on Lobby TV Scrolling Date on Lobby TV New JHOLMAN Allow an applicant to delete their application or to submit a new one, while Employment App the old one still exists Enhancement NPOWERS DR Tracking CREATE A WAY TO TRACK DR HISTORY INFO New MDESTGERMAIN Report Showing Internet History Report Showing Internet History New TPATERNOSTER Report Showing Phone History Report Showing Phone History New TPATERNOSTER Audio Database Create a way to store and tracking audio files from their voice recorders New JLAVEY Timesheet Rewrite Timsheet Rewrite - Need to be able to handle Flex weeks Now RCUNNINGHAM Asset Tracking Asset Tracking New TPATERNOSTER Case Management - Remove encryption from all fields then create a way Casa Mananemern to search cases Enhancement MTANNER Total Hours 3662 Total Weeks 61.66 CONTRACT EXTENSION - FY -2010 Prosecution and Criminal Legal Service for the City of Meridian Cost for Services The Boise City Attorney's office proposes to continue to offer Meridian City a flat annual fee to be billed in monthly installments to provide the services described in this proposal. Primary Legal Services Primary prosecutorial legal services include: • Prosecutorial intake screening and review of all police -generated misdemeanor reports and citations; • Timely filing decision and notification back to MPD and customer; • Prosecution of infractions and misdemeanors occurring within the Meridian City limits or pursuant to the Memorandum of Understanding between MPD and BPD; • Coverage of the additional caseloads in the new criminal courtrooms assigned by the Trial Court Administrator. Primary civil legal advice and guidance to the Meridian Police Chief and MPD include: • Access to members of the Public Safety Division for immediate assistance 24 hours a day, 7 days a week through cell phone and/or pager under WD's protocol; • On-site legal services by the dedicated assigned Police liaison attorney two half -days each week; • Routine review and approval of the MPD's public records requests and property dispositions; • Superior legal training for Block Training and Advanced Academy on search and seizure, trial preparation, investigations, and domestic violence; • Training on other needs (including those identified through the screening process) by request of the Meridian Police Chief; • Regular legal bulletins, including Idaho case law, U.S. Supreme Court, and the Ninth Circuit. Annual Cost - $271,380 Monthly Installment - 22,615 U O rA O V v rs 0 m 0 u 7s ME tn O U V �Pli r� v 0 N O b�A � O O U V �Pli r� v c Q) E a) L c E o 0 a) Ln L N o A. 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VALLEY REGIONAL TRANSIT 8,000 7,000 6,000 v 5,000 4,000 0 3,000 2,000 1,000 0 July 2, 2009 Route 40 - Nampa Meridian Express Passenger Trips Per Month OA OA OA 00 00 0b 00 00 O`b O% 00 00 00 O% 00 dy 1°, p°�' � 1' '0' �5�� PQM `Sad �J� S",QJ°' g�� O°� °, X40 Nampa Meridian Express - All Intercounty Routes Eastbound Stop Description University & Joyce E University & Grant E Broadway & Park N Idaho & 1 st W Idaho & 5th W Idaho & 8th W Idaho & 11th W Country Terrace P&R S BSU West Campus P&R E Northside & 6th S Caldwell & Canyon W Karcher Mall P&R W Average Passenger Boardings trom 4b randomll Passengers De -Boarded 2.8 0.5 0.8 2.2 2.4 3.7 2.8 0.3 0.0 0.0 0.0 0.0 Passengers on Board 0.1 0.0 0.0 0.0 0.0 0.0 0.0 5.8 6.9 0.5 0.5 1.8 selected trips Dec 08 - Jun09 Westbound Stop Description Karcher Mall P&R W Caldwell & Canyon E Northside & 6th N BSU West Campus P&R E Country Terrace P&R S Main & 11th E Idaho & 8th W Zone 3 Main & 8th E Main & 5th E Main & 1st E Broadway & Park N Broadway & University N Beacon & Grant E BSU Admin Building W Passengers De -Boarded 2.0 0.6 0.1 8.4 8.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 18,000 16,000 14,000 3 12,000 0 10,000 8,000 6,000 00 4,000 2,000 E 0 Passengers on Board 0.0 0.0 0.0 0.0 0.0 4.0 3.1 2.9 1.6 3.0 0.8 1.4 1.0 3.2 Additional Express Trip 1 Year Project Cost OPERATIONS SUMMARY Service Period 12 months Morning Intercounty Express Trips Per Day 1 Evening Intercounty Express Trips Per Day 1 Hours Of Express Service Per Day 4.0 Number Of Vehicles 1 Yearly Operating Days 256 Total Annual Operating Hours 1,024 (REVENUE SUMMARY Total Federal Funds $71,885.06 Total Local Contribution $32,881.16 Passenger Fares (15 Passengers Per Trip) $12,600.00 Total Revenue $117,366.22 (EXPENSE SUMMARY Total Direct Operating Cost $70,133.76 Total Capital Cost $33,000.00 Total Indirect Cost $14,232.46 Total Expense $117,366.22 !, 133 W. Broadway P.O. Box 606 Meridian, ID 83680 CAPITAL IMPROVEMENT REQUEST 7-01-09 Transportation Program: $18,000 This program provides homebound seniors and opportunity to come to the Center daily for lunch, go grocery shopping and attend Dr. Appointments. We have numerous seniors who are homebound and this service not only attends their needs, but it allows them to come out and have socialization. Center flooring proiect: ($7,375.50) The Meridian Senior Center is requesting that the flooring in the activity room be replaced for the following reasons: 1) Vinyl: This type of vinyl needs to be striped and re -waxed about every 6 weeks in order to keep up the finish. This has to be done by a professional, as we do not have the equipment or the man power to complete this project. This area has numerous pock and divot marks on the surface due to the age of the vinyl (1970's) 2) Carpet: The other side of the activity room is carpeted. This carpet is prone to coffee spills etc, and even though it has been cleaned numerous times, these stains still remain in the fibers on the carpet. This carpet because of the amount of traffic and the about of spills is along cleaned professionally every 3 months. Placing vinyl in this area would give us better cleanable space especially when someone spills something, we can get to the spill and clean it up right away. This carpet is from the 1980's. We would recommend going with Franklin Building Supply as the Vendor. We have utilized them in laying carpet and vinyl in our Dining room, putting new kitchen counters in our dining and kitchen areas. They stand by their product and if we ever have any problems or questions they get back with us and are great to work with. Air-conditioning and Furnace Project 1) One Payne 3 ton air conditioning unit. This is to replace a unit which is about 10 years old, and could break down at anytime. If approved this unit would be installed October 2009. Cost: $2,031 2) One Payne 90% 120,000 BTU 4 way furnace. This is also to replace a unit which is about 10 years old and could break down at anytime. If approved this unit would be installed October 2009. Cost: $2,519 The bid given includes tax, since we are a non-profit we don't pay sales tax. The total cost for both units is: $4,550. Please see the attached documentation for each request. We appreciate your consideration regarding these Capital Improvement Requests. Thank you, Pauline Lough President Meridian Senior Center Jun 06 2009 1:42PM MERIDIRMSEMIORCEMTER 2088889135 p.5 12.47 PM 06029= Acenial Bomb Meridian senior Cent Account QuIckRepoR January through Decunber, 2008 Type Dace T "m _. genre _Malmo _ Side Amount SM • Transportation Empww r 6600.1 . DAvere V4*m Paycheck 1116F2000 4891 Llewellyn S Reitz.. Niabiteneac... 164.00 Paycheck 1/16/20081 4694 Therman !Gingery Maktanenc... 63.00 Paycheck 2MMO08 ! 4709 Lkwefyn S Role.. Mafnbenanc... 220.00 Paychedt 2/1/2008 4791 Therman Iftery NFahhter hC... 24.00 Paycheck 211ad2008f 4729 Lleweityn S Reit... Malrdo nc._ 254.00 Paydem 2/29l20D8 4748 tlara8yn S Rek .. Lightens=.. 264.00 Paycheck 3/14/20081 4709 Uamtp S Reic... Nkbhtarhanm.. 254.00 Paycheck 4/1MiM f 4788 Llewellyn S Rek... Ifthdenenc... 248.00 Paycheck 4112008 i 4787 Therman K6hgery Nlair6enanc... 30.00 Paychml 4/1S/2009+ 4811 Uewe6yn S ROt:... Mairiterronc... 2W.00 Pay&eck 4ANZINI 4623 Uewetyn S Rek... Nwintenanc... 224.00 Paycheck 5f14M008: 4847 Lteareflyn S Rek... Mateo... 278.00 Paycheck 5130/2008; 4858 Ue&FORP S Rely .. Matnlenanc... 2MCD Psyclhac k W12MWI 4878 Llewellyn S Rek .. RAWnh mm... 222.00 Paycheck SM012OW ! 4819 Llewellyn S Rek... Nalnisnam .. 238.00 Paycheck 7/1512008! 4911 Lionel" S Role.- 1005 - D.L.... 104.00 Paycreck 7131/2I6I 4931 Llewelyn S Relc... 1006- D.L.... 270.00 Paycheck Paycheck 8/15/2009 i 4950 Jatron Lough i 005 • D.L.... 52.00 811512008: 4948 Llewellyn S Raft... 1006 • D.L.... 312.00 Paycheck 8M U20081 4857 Uawelyn S Rei... 1005 - O.L.... 122.00 Paycheck 829!2008 i 4957 Kevin H Brawn 1005 - D.L. ... 216.00 PROW* 9/12P2008 ! 4981 Kevin H Brown 1005 D.L.... 324.00 Paycheck 9t90/Z008 i 4999 Kevin H Brawn 1005 • D.L. ... x.00 Paycheck 9130/2008; 5000 Therman Klrtgery 1005 D.L. ... 1W.08 Paycheck 10111 WW" 013 5045 Kevin " Brom I OW - D -L OO Paycheck 10/3 Kevin H Brown 1005 • D.L. ... 33114..0D Paycheck 11/142000 5059 Kevin H Brom 10DS • D.L. ... 22SM Paycheck 1 f1281200$ 5087 Kevin H Brough 1005 . D.L. ... 88.00 Paycheck 11fa6rAft 5086 Therman jongery 1005 • D.L.... 150.50 Paycheck 12115=0 5101 Therman Wromy 1005 • D.L. ... 175.00 Paycheck 12131120!08 5126 Thekman Wngery 1005 • D -L.... 198.00 TOtc 66.1 - Ddms Wages 5.948.58 8600.2 . Fuel General Journal 1/112098 year... Nlavedit 6750.1 • Tel... (249.09) Check V22M006 4701 Maveri k tAatrr bmnc-.. 249.80 Check 2HIM008 4718 MaverBk tfttrtte hanc... 335.55 Check 3/1412008 4770 Mamlit Maintenanc... 389.70 Check 411MIMI: 4806 Nkmarik Maintenanc... 311.10 Check 5/9V2008 4632 Maverik Maintenanc... 392.31 Check Gr25MIN 4692 Maveri k Mahhfenane .. 520.25 Check 7!2112008 4920 Nkmft 1005 • D.L.... 411.95 Check W20=08 49M M$verifk 1003 . D.L. ... 375.92 Check 9/192008 4986 Nlaverfk 100.5 - D.L. ... 409.75 Check 1097/2006 5019 Maverik 1005 • D.L.... 47827 Check 11/25/2008 5075 Moverk 1005 • D.L. ... 350.11 Check 1202M 5091 Mavm* 1005 - D.L.... 285.64 Gomel Journall 12/31/2008 A/P regard 12J... 6750.1 - Tel... 50.56 Total 8800.2 • Fuel 4.386.02 6800.8 • Vehik le Insurems Check 8/112008 4934 Progressiae bm... Inge c... 105 • D.L.... 20.00 Deposit 91272008 Progressive Ins... kefwW due... 1005 • D L.... (247.09) Check 10/82006 5006 Progressive Ins... 1005 • D.L ... 308.00 Check IOr2 20D8 5040 United Finrancial... 1005 • DJ..... 3.655.00 Gteneral Joumal 12/31/2008 Ppd ... record pre... 1210 • Prep... (201.70) TaNd 6500.3 • Vehkte insurance 3.534.30 6600x4 • Lids Check 9110f200B 4909 Ada County Ass... VOID.- Piet... 1005 - D.L._ Check 10/178006 5025 Who Tran i.. 1095 . D.L... 5.00 Tota16800.4 • Licensee 5.09 Jun 06 2009 1:43PM MERIDIRNSENIORCENTER 2088889135 12:47 PM rAwmian Senior Center 06d1!l108 Account QuIckRepolt Acena d Bests January through December 2008 Type Dam Nun Name Memo_ spot Amount 6M.6 - Mail s - mnb Bus Check 2/1112 4725 Meridian Ford Bus MMntenane... Check 317/2008 I 4755 Meridian Farad am Maintenanc... 18.03 Check 41412008 4793 Meridian Ford Bars Alnf nsnc... 385.83 Check 8/IW66l4980 Meridian Ford 1005 - D.L.... 542.34 Check WM!M. 4987 SWw Bm Van Wed... 1005 • D.L.... 235.00 Check 1 IMSMO 5073 Ads County Am... 1005 • D.L.... IV -12 Total 8600.5 - lMm mmnce - 2002 Bas 1,354.32 8800.8 - Mahft mnr - 20 Van Check 2R0120N 4739 Wheelchair Acc... Repair on ... ktaintwmc._ 85.00 Check 101171200* 8027 lnMm=ntaln C... 2008 Van 1005 • D.L.... 417.06 Total SM.6 • Maidenance, -2008 Van 502.06 Total MW - Transportation Expense 15,728.31 TOTAL 1 8.728.31 P.6 Franklin FLOORING ESTIMATE FORM SERgC660URSP8C/ALTY FBS CONTR. REG.# RCE -1898 CUSTOMER: MERIDIAN SENIOR CENTER BILLING ADDRESS: 133 W. BROADWAY CITY, ST, ZIP MERIDIAN, ID 83642 HOME PHONE 888-5555 WORK PHONE FRANKLIN CREDIT ACCT. CASH / CREDIT CARD JOB NUMBER DATE 6/18/2009 DATE BILLED Billed on SHIPPING INSTRUCTIONS JOB LOCATION: DANCE! FLOOR ARBA` LOT: BLOCK: SUBDIVISION: SALESMAN: TYLER PHONE 941-4048 ALL PRICING INCLUDES TAXES We hereby submit e followng quote for Is - VINYL FLOORING Tarkett Comfort Style Installed with New 4" Vinyl Base $ 3,799.04 Is - $ - $ - Is - SCOPE OF WORK: TARKETT FIBERFLOOR COMFORT STYLE VINYL (137.33 sy) INSTALLED. SCOPE OF WORK INCLUDES PROPER SEAMWORK AND INSTALLATION IN THE "DANCE" AREA PER SPECIFICATIONS. REMOVAL OF OLD 4" BASE AND NEW 4" VINYL BASE INSTALLED AROUND PERIMETER. BOOKSHELVES AND PIANO WILL BE MOVED AND REPLACED UPON COMPLETION. PROJECT PRICING TO BE PROTECTED THROUGH OCTOBER, 2009. $ 3,799.04 Payment to be made as follows: All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to Authorized industry standards. Any alteration or deviation from above specifications involving extra costs will be executed Signature only upon written orders, will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owners to carry fire, tomado and other necessary insurance. All work is performed by independent subcontractors. Note: This estimate may be withdrawn by us if not accepted within da Acceptance of Proposal - The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payments will be made as outlined above. There is a 1.5% Finance Charge on past due Signature amounts (18% annual rate) computed from billing date. Owner will be responsible for all collection costs and fees resulting from failure to pay as agreed Date of acceptance Signature -� Franklin FLOORING ESTIMATE FORM SFRYlCEBOURSMC/ALTY FBS CONTR. REG.# RCE -1898 CUSTOMER: BILLING ADDRESS: CITY, ST, ZIP HOME PHONE WORK PHONE MERIDIAN SENIOR CENTER 133 W. BROADWAY MERIDIAN, ID 83642 888-5565 FRANKLIN CREDIT ACCT. CASH / CREDIT CARD DATE 6/18/2009 DATE BILLED JOB NUMBER Billed on SHIPPING INSTRUCTIONS JOB LOCATION: GAME',iALE LOT: BLOCK: SUBDIVISION: SALESMAN: TYLER PHONE 941-4048 ALL PRICING INCLUDES TAXES We hereby submit e following quote or: $ - VINYL FLOORING Tarkett Comfort Style Installed with New 4" Vinyl Base $ 3,576.46 Is - Is - Is - Is - Is - SCOPE OF WORK: TARKETT FIBERFLOOR COMFORT STYLE VINYL (137.33 sy) INSTALLED. SCOPE OF WORK INCLUDES PROPER SEAMWORK AND INSTALLATION IN "GAME" AREA PER SPECIFICATIONS. REMOVAL OF OLD 4" BASE AND NEW 4" VINYL BASE INSTALLED AROUND PERIMETER. BILLIARD TABLES AND FURNITURE WILL BE MOVED AND REPLACED UPON COMPLETION. PROJECT PRICING TO BE PROTECTED THROUGH OCTOBER, 2009 $ 3,576.46 Payment to be made as follows: All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to Authorized industry standards. Any alteration or deviation from above specifications involving extra costs will be executed Signature only upon written orders, will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owners to carry fire, tomado and other necessary insurance. All work is performed by Note: This estimate may be withdrawn by us if not accepted independent subcontractors. within days. Acceptance of Proposal - The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payments will be made as outlined above. There is a 1.5% Finance Charge on past due Signature amounts (18% annual rate) computed from billing date. Owner will be responsible for all collection costs and fees resulting from failure to pay as agreed Date of acceptance Signature Jun 06 2009 1:42PM MERIDIRMSEMIORCEMTER 2088889135 p.3 846-8707 Estimate timate # 6/11/2004 1097 Name /Address .,aa �.vuauuvu CZ I-Icumg lErL'filce Of Meridian, Inc. A P.O. BOX B9S MERIDIAN SENIOR CENTER P.O. WX 606 MERIDIAN,ID83690 Meridian, ID 83680 MODEL # W.O. # TERMS3ER1/1L # MAKE Net 15 Description t QIY Total PAYNE 90°1.120,000 BTU 4 WAY FURNACE 1 5 TON R-22 EVAP. COIL Wf IXY 24" WIDE ` 1 1,315.301 315.50T FURNACE BASE, PLENUM WITH 4" FILTER RACK BuiLT IN 1 GAS CONNECTORS, VENT CONNECTORS ANS MISC. SUPPLY 1 300.50T 00 Welding Fee 00T Evacuados Chwp {Vga►um PnrnP) 1 00T 30.25.00 Labor Rate 1 3 350.00 ESTIMATE TO REMOVE OLD FURNACE AND •EVAP. COIL AND REPLACE WITH SAME SIZE AND BRAND. ADD BASE AND PLENUM WrM STANDARD 4" FILTER RACK. WELDING, EVACUATION VENT PIPE CONNECTIONS, GAS CONNECTIONS AND DRAIN LINE. THIS FURNACE AND COIL (5 TON) TO MATCH NEWER CONDENSING UNIT. NOT TO EXCEED $2700.00 TRIS ESTIMATE IS GOOD FOR 30 DAYS. DUE TO COST INCREASES Subtotal As 19.00 Sales Tax (6.0%) $ln.64 Total $2,647.64 signature Jun 06 2009 1:42PM MERIDIRNSENIORCENTER 2088889135 p.4 Go�dt�on4 Of n9 '0 ee MZRIBI I NCOBpORA'IW� 846-877 Estimate F6!nate EsUnuft # 1112009 1098 Nam® I Address A -au wutia Lj%FLWg oc LZ�iSiillg rx'.mce OI mefldt811, Inc. P.O. Box 698 MERIDIAN SENIOR CENTER P.O. sox 606 MERIDIAN, ID 83"0 Meridian, ID 83680 a MODELS W.O. # TERMS SERIAL # MAKE Net 15 Description Qtf► TOW PAYNE 13 SEER 3 TOAs COND. UNIT i R-22 2 - 3 TON EXPANSION VALVE I I,150.SOT (Vacuum Charge (VacuPomp) 1 IOD. SOT Welding Fee 1 23.00 COPPER AND FITTINGS. MISC. SUPPLIES I _ 30.WT Labor Rate I SOOT 5 .350.00 ESTIMATE TO REPLACE 3 TON CONDENSING UNIT AND MATCH UP TO A NEWER FURNACE AND (COIL?). ADD TRERMOSTATIC EXPANSION . VALVE TO EVAPORATIVE COIL TO MATCH COIL TO CONDENSING UNIT. EVACUATE AND CHARGE UNIT. NOT TO EXCEED $18W.00 PURON 3 TON 17 WIDE EVAP. COIL 1 360.00T RETURNED AND CHECKED THE EMAP. COIL AND FOUND IT TO BE A OLDER COIL THAT MAY NEED TO BE REPLACED WHEN CONDENSING UNIT IS REPLACED. TOTAL JOB COST NOT TO EXCEED $2200.OD IF COIL IS REPLACED AT TIl4tE OF COND. UNIT REPLACEMENT. THIS ESTIMATE IS GOOD FOR 30 DAYS. DUE TO COST INCREASES Subtotal $2,031.00 Sales Tax $99.36 Total $2.130.36 Slgnatune Public Works Department FY2010 Budget Presentation Public Works Department Budget Detail Enhancement History asr s+aamaooao _ se,amomroi n. svooermao �' Personnel8 Operating Expenses-t0D0mAD -. gra FY09 vs. FYI Public Works Department Budget Prioritization & Approach The Mission of the Public Works Department is to anticipate, plan and provide exemplary public services and facilities that support the needs of our growing community in an efficient, customer -focused and financially responsible manner. Across the Department• we incorporated the following principles into the preparation of our budget: • Current Regulatory and Safety Requirements Must Be Met • Product and Service Quality. Area and Delivery Levels Must Be Preserved • Infrastructure Must Be Adequately Protected and Maintained • Improve Staff Training and Utilization of Technological Resources Expansion of Assets and Infrastructure Must Be Strategic and Measured • Set Aside Accrued Depreciation and Operational Reserves • Utifize'Just-ln-Time' Capital Financing Approach for Better Leverage • Reduce Costs When and Where Possible Maximize Operational Efficiencies Ask For Only What Is Needed • Conserve Resources Empower our Budget Stewards Water Division Water Division Budget Prioritization & Approach The 2010 Water Enhancements were created to continue the programs currently in place. Specifically we considered that: • Customers want to experience the same service delivery they are receiving now • Customers want to be assured that we are appropriately planning for future growth • Fire protection services will continue to be supported at the current high level • Water quality programs will continue to assure continued high quality service. Enhancements were prioritized based on: • Public Safety • Employee Safety • Continued high quality and quantity water • Accommodation for system growth Water Division Enhancement Summary 1) Radio Read Program 2) Ground Water Master Plan 3) Ground Reservoir 4) Waterline Extensions 5) Well Rehabilitation 6) Water Main Replacement 7) Downtown Urban Renewal 9) Software support agreements for Hansen 0) Well #29 Construction 2) Contract Labor Total FY10 Enhancements Requested: $2,350, Water Division Enhancement #1 Priority #1 Radio Read Program One-time Cost. $465.000 Ongoing Cost $0 Need/Purpose: To continue converting water meters to radio read technology. This request will allow us to convert an additional 2.632 accounts. We have converted 16.736 accounts or 64% to radio read technology to date. We have just over 9,000 more to go to achieve 100%. This request also includes funds for changing out aging meters and/or meter registers to maintain or improve billing accuracy. Goals: To further reduce ongoing labor expenses of the city by utilizing technology. Water Division Ground Water Master Plan Enhancement #2 FY10 Enhancement: $458,000 Priority #2 Annual Ongoing Program Cost: Varies Need/Purpose: Consulting services are needed to develop knowledge of the underground aquifer system that provides our water supply and apply that knowledge. This work is ongoing and induces aquifer monitoring and testing. water rights planning and transfers, engagement of regulatory agencies, and regulatory compliance. Goals: Our goals are to adequately represent long range water supply needs and source characteristics to regulators through collected data and science. and to enhance and protect water quality and quantity to ensure the long tens viability of our water utility. Cesl Rnjeceen i81Q Oft W2 RM itne TssA.SKrR Mnuat Repueci 5150000 S]BOAW 5]80.000 1000,000 1000.000 SI A)B.WO Water Division Enhancement #3 Priority #3 Ground Reservoir FY10 Enhancement: $550,000 Total Project Cost: $3,700,000 Need/Purpose: The Water Master Plan has identified the need for additional water storage to supply peak and emergency demands The Idaho Department of Environmental Quality has communicated their expectation that this plan is implemented. This enhancement provides for the financing to start design and land acquisition for the protect. - Goals: Our goal is to provide public facilities that support the needs of our growing community. Gml ProFc4on ygtQ 2911 ffili mti tQt.S Tod 6xelvCM M1u Requecr � 5560000 5+650.000 r1650,m0 1 51.000.000 '51.650.000 'T�rs IHolecl rnclW- furxi g flan provroui ramal fears. Water Division Waterline Extensions Enhancement #4 FY10 Enhancement: $205,000 Priority #4 Annual Ongoing Program Cost: Varies NeedlPurpose: ? riles '.�� Waterline projects must be designed and built in conjunction with ACHD and ITO road construction projects 1_ where they are needed to maintain or improve service' levels to current and future customers. Pipe upgrades can improve fire protection capability oals: Our goal is to design and construct improvements to our existing water distribution system during road construction In order to be cost effective. coslvror�aean 7Q+9 7411 tt+z � Ztd1 r�r-rb ca.r �,wlr ww..e � szM.a00 sss.aro srsaao � 6265.909 sns.m9 st.rn.9a9 Water Division Well Rehabilitation Enhancement #5 FY10 Enhancement: $150,000 Priority #5 Annual Ongoing Program Cost: $150,000 Need/Purpose: Wells must be rehabilitated in order to regain pumping capacity lost over lime and to ensure the longevity of the capital investment. We have identified that the average well needs x rehabilitation after ten years of production. Goals: One of our initiatives is "Stewardship of the Public Trust". One success expectation of the initiative is to "maintain annual O/M budget increase at less than 213 of the account growth rate". In most cases it is far more cost effective to rehab a well than to construct a new one. ,A "Water Division Water Main Replacement Enhancement #6 FY10 Enhancement: $150,000 Priority #6 Annual Ongoing Program Cost: $750,000 Need/Purpose: Water mains in the older sections of town that are not within the urban _ renewal area may be undersized, composed of material that does not meet icurrent standards, or approaching the end of service life. They must be t systematically replaced. Our goal is to anticipate, plan, and provide public facilities that support the needs of our community Replacing old mainlines before they rupture reduces the risk of an incident that causes property damage. 7919 7911 2917 2917 79/f TaMI EYea 9asl M11utl Rtpueat 'i 5t,rpOW 5150000 SISO,OJO 5150,990 f15900p S'S0A09 Water Division Downtown Urban Renewal Enhancement #7 FY10 Enhancement. $200.000 Priority #7 Annual Ongoing Program Cost: $1.000.000 Need/Purpose: Water mains in the urban renewal area may be undersized, composed of material that does not meet current standards, or approaching the end of service life They must be systematically replaced Goals: Our goal is to support urban renewal by replacing and upsizing l old water mains to accommodate larger buildings associated with downtown redevelopment If cat Prolecaon IQt4 241 3Qf3 2413 ZQU TaW o-yrcwr Maar Rwwn s34o.aro sm4.aao s3m,000 s3m.aao s3ro,000 sr ao44o4 Water Division Software Licenses for Hansen Enhancement #9 FY10 Enhancement: $7,000 Priority #9 Annual Ongoing Program �Cost: $7,000 Need/Purpose:+ We purchased Hansen Asset Management licenses in FY2009 with associated software support agreement from Hansen. This Enhancement is pays for the annual fees so we can receive service and support for the Water licenses we own. Goals: Our goal is to keep the asset management program we own viable throughout its life. The software support agreement protects our software investment. With the software support agreement in place, we will be able to receive upgrades and unlimited technical support of the product we own. co.r R.ojecnon 3010 3gU 342 iota i V14 IoWI—,c— nwi Rep 1 57.000 $7000 47,000 57.400 47,000 433.000 Water Division Well #29 Construction Enhancement #10 FY10 Enhancement. $90,000 Priority #10 Total Project Cost: $750,000 Need/Purpose: For preliminary engineering work utilizing "lust in time" financing for this portion of Well #29 construction. Goals: Our goal is to provide for a source of water supply to C replace supply associated with abandoned wells and declining capacity of existing wells. coal vroiecoon 20]4 34]1 2412 2413 2414 7s3tl�Y.e�Ss>cl rt a�wi Repuevr � seo.aao sao.4o4 SD0.000 •swo.aao •Thea ao�ect inciWes IurMinO frau previous fiscal years Water Division Contracted Labor Enhancement #12 FY10 Enhancement $75.000 Priority #12 Annual Ongoing Program Cost: $75,000 Need/Purpose; Continue to fund the Customer Backflow Test program. authorized by City Council May 3. 2005. Goals: Protect the City's water supply, customers, and the general public from contamination as a result of cross -connections. Questions & Comments Engineering & Administration Engineering & Administration Budget Prioritization & Approach The Engineering Division is committed to the Mission of Public Works. We provide exemplary services that are customer focused and financially responsible. Our budgeting reflects the priorities of� • Providing exemplary services, Being financially responsible: and • Meeting regulatory requirements. We need to move forward with capital projects now while contracting prices are low We need to anticipate needs (or demand) to serve our current and future , customers. ' Engineering & Administration Enhancement Summary 1) Sewer Collection & Water Distribution System Modeling Software 2) Surface Water Program 3) ArcGIS Software Purchase 4) Arial Photography Program Total FY10 Enhancements Requested: $135,900 Engineering & Administration Sewer Collection & Water Distribution Enhancement #1 System Modeling Software Priority #1 FY10 Enhancement: $30.000 Annual Ongoing Program Cost: $2 400 Need/Purpose: This enhancement will provide sewer collection and water distribution system modeling software packages that are compatible with GIS for our existing and future wllection system models Goals: Part of our Department Mission is to "anticipate, plan and provide exemplary public services and facilities that support the needs of our community", in order to provide the level of service we have grown accustomed to and model new developments as they are platted, we need to update our modeling software. Engineering & Administration Comprehensive Surface Water Program Enhancement#2 FY10 Enhancement. $50,000 Priority #2 Annual Ongoing Program Cost $50,000 Need/Purpose: To fund the Comprehensive Surface Water Program. which includes Storm Water Management as required by the Environmental Protection Agency and Floodplain Management and the Federal Emergency Management Agency. This includes consulting services, staff training and related work. Goals: This enhancement will enable the Public Works Department to provide public services that are required for storm water and floodplain management. Engineering & Administration ArcGIS Server Purchase Enhancement #3 FY10 Enhancement: $38.500 Priority #3 Annual Ongoing Program Cost: $5,000 Need/Purpose: To facilitate the transition to Hansen and aid in asset management by combining information in Hansen and GIS. Goals: Being able to visualize the conditions of assets on the ground will help the City anticipate maintenance and replacement needs. Hansen will provide information to facilitate Engineering in planning CIP projects to improve our customer service capabilities. Coot RoiecUon o2_i4 1411 11 2411 2411 2414 rod 6yorCo�t MnuY Rpvnt 535,500 $5AW $5000 55.000 f5.000 fSS.'O0 Engineering & Administration Enhancement #4 Priority #4 Aerial Photography Program FY10 Enhancement: $10,000 Annual Ongoing Program Cost: $0 Need/Purpose: 4 To participate in a valley -wide effort through C.O.M.P.A.S.S. toffy aerial_ a photography every 2 and 3 years to } t� coincide with census updates. caw Goals: Aerial photography allows the city to have regularly updated imagery as well as a continuing history of the changes in the city. This imagery enhances the visualization power of the GIS- Up to date imagery is useful for planni analyzing and communicating with GIS. Questions & Comments Wastewater Division Wastewater Division Budget Prioritization & Approach The Wastewater Budget Enhancements Were Created on the Premise that: Program delivery to customers must be continued In an uninterrupted manner • Current regulatory requirements must be met • Advanced preparation for more stringent regulations is necessary • Infrastructure must be protected and maintained • Our complex treatment plant must be managed in an effective manner • Resources must be conserved • Construction lead time must be considered with regard to future customers • New service units created must capitalize on resource reallocation for environment stewardship Enhancements are Prioritized Based on Urgency of Need. Specifically: • Safety of employees • Ability to serve current customers • Ability to meet current regulatory requirements • Anticipated regulatory needs • Assuring infrastructure longevity • Using sustainable resources Wastewater Division Enhancement Summary 1) Consulting 2) Land Acquisition 3) WWTP Facility Plan/Sewer Master Plan 4) Lift Station Acquisition/Maintenance/Repairs 5) Sewer Line Extensions 6) Downtown Urban Renewal 7) Collection System Repair 8) Lab Equipment Upgrades/Replacements 9) WWTP Software Support Agreements 10) Reclaimed Water Booster Station & Reservoir 11) WWTP Maintenance & Upgrades 12) WWTP Primary Clarifier Fermentation and Bio-Augmentati 14) Reclaimed Water Transmission Lines 15) WWTP Automation Upgrades 16) Pre -Design BRO Pipeline Replacement Total FY10 Enhancements Requested. Wastewater Division Consulting Enhancement #1 FY10 Enhancement: $185.000 Priority 01 Annual Ongoing Program Cost: $150.000 Need/Purpose: Funding for professional and legal services regarding operational enhancements for multiple projects such as collection system flow monitoring, plant seventy upgrades and odor control. - Goals: Improve operational efficiencies and help attain the Department Vision of recycling 80% of waste water. Cosi RajecSon 3414 1 4UJ ffi12 291$ 2414 I IRtal6-Ym Cost Annual R-1 I =1✓ ,= I f150p00 $IW.= 5150,000 1 $150,000 1 $ x.000 Wastewater Division Land Acquisition Enhancement #2 FY10 Enhancement $700.000 Priority #2 Ongoing Cost: $0 Need/Purpose: This is a strategic effort to acquire properties near the Wastewater Treatment Plant. It will provide additional area for future plant expansion and buffer zones and allow us to pursue opportunities such as reuse. wetlands, and bio -solids composting. Additional buffer zones for the wastewater treatment plant site will also reduce the potential for odor complaints. 4 , Goals: Purchase land near the Wastewater Treatment Plant to anticipate and plan for expansion and buffer zones that support the needs of our growing community. This supports the PW Vision for the Plant to recycle 80% of the waste stream. e Wastewater Division WWTP Facility Plan/Sewer Master Plan Enhancement #3 FYI Enhancement Cost $550.000 Priority #3 Annual Ongoing Program Cost: $0 Need/Purpose: The WWTP Facility Plan will capture the optimization efforts at the plant to increase capacity since the 2007 Facility Plan Update The Sewer Master -_ Plan update completed in 2005 is in need of an update to incorporate recent construction and development prionty areas. Goals: Enable the W WiP to keep pace with growth and maintain compliance with regulatory agencies. To aid PW in planning and budgeting for future upgrades and expansions. _ „ i Wastewater Division Lift Station Acquisition/Maintenance/Repairs Enhancement #4 One-time Cost: $0 Priority #4 FY10 Enhancement Ongoing Cost $ 50,000 Need/Purpose: To set aside funds each year for the rehabilitation of lift stations and to maintain additional pnvate lift stations as they petition for transfer to city operation Goals: Maintain the ongoing provision of funds for a sanitary sewer system that provides public services and facilities to support the needs of the community Wastewater Division Sewer Line Extensions Enhancement #5 FYiO Enhancement $356.060 Priority #5 Annual Ongoing Program Cost Varies Need/Purpose:,_' co.r c.oM.no. tN3 34ll � � 1414 � �c r Nmutl Reyue.r 5156.060 551.,155 ES1..Bn Et256.536 Provide sewer infrastructure and replacement 'n throughout the City for ACHD roads and other E projects In addition, this enhancement provides for the repair and maintenance of sewer in the pipelines right of way. Goals: Allow Public Works to provide sewer services in coordination with ACHD projects and to provide replacements/repairs to support the needs of the community, ...T_ .. 53,240 yu., Wastewater Division Downtown Urban Renewal Enhancement #6 FY10 Enhancement: $234,090 Priority #6 Annual Ongoing Program Cost: Varies Need/Purpose: Plan and design improvements of the sewer collection system infrastructure for the downtown sewer corridor.+�� Goals: To increase planning efforts to reflect priority areas for sewer collection facility construction and focus departmental efforts on the downtown corridor, IF" identified by City Council as a priority area. co.eN tk— Wastewater Division Collection System Repair Enhancement #7 One-time Cost $0 Priority #7 FY10 Enhancement Ongoing Cost $250.000 NeedlPurpose: The ongoing inspection & cleaning program for the sewer collection system identifies areas for repair or rehabilitation This fund is necessary to complete the repairs identified by the sewer inspection and cleaning program Goals: To keep the infrastructure in a sound and serviceable condition and to reduce infiltration & inflow into the system to preserve wastewater treatment plant capaUly Wastewater Division Lab Equipment Upgrades & Repairs Enhancement #8 FY10 Enhancement $17,750 Priority #8 Annual Ongoing Program Cost: Varies Need/Purpose: — e To acquire equipment to meet the demands of the sampling program at the Wastewater Treatment Plant that has expanded over the past several years due to 9&= - current and upcoming regulatory requirements and to fund contracted lab services when additional capabilities are needed. �. 1 , Goals: Improve quality of service by adding a level of ` dundancy in testing, in the event of a failure. l Gast ProRcnon 2010 30n 2012 '.013 .014ISYea� n� Coat lona Repu EV.,. $12,5IX1 Wastewater Division WWTP Software Support Agreements Enhancement #9 One-time Cost: $0 Priority #9 FY10 Enhancement Ongoing Cost $16,900 N Need/Purpose: The on-going expenses are related to purchavng the Hansen service package agreements for the recently expanded number of Hansen Goals: Provide better asset management to meet service demands and be good stewards of the public trust by increasing accountability to our customers. Wastewater Division Reclaimed Water Booster Station & Reservoir Enhancement #10 FY10 Enhancement $1,375,000 Priority #10 Ongoing Cost : $0 NeedlPurpose: "- S �r Design and construction of a reservoir and a booster "P. station to support the city-wide reuse permitfora _I reclaimed water and distribute to citizens, parks and other areas of Mendian. Goals: Enable Public Works to take actions to reaching the Department Vision of recycling 80% of our waste stream and to provide facilities that support the needs of the community. Wastewater Division WWTP Maintenance & Upgrades Enhancement #11 FY10 Enhancement $180,000 Priority #11 Annual Ongoing Program Cost. $110,000 Need/Purpose: To fund required maintenance and necessary upgradeswhich are: re - coal equipment with a protective material replace aeration basin fillers, valve replacemenVmaintenance, purchase a portable pumping station and fire alarm system. 490 Goals: Continue to anticipateplan and provide exemplary public y service. Furthermore, to keep the plant and collection system continuously fully operational ,I Wastewater Division WWTP Primary Clarifier Enhancement #12 Fermentation & Bio -augmentation Priority #12 FY10 Enhancement $550.000 Total Project Cost $1,550,000 Need/Purpose: Bioaugmentation will reduce the potential for struvite formation while treating the nitrogen rich solids flow stream with minimal chemical addition. The retrofit of the old primary clarifiers to fermenters will introduce volatile fatty acids to support biological nitrogen and phosphorus removal. Goals: Reduce struvite formation, nitrogen, and phosphorus levels in our effluent so it has less - impact on the environment and can be reused for more purposes. Delay capital construction needs _ by optimizing existing processes. 1 Aimwl Re al Ssse.= I S1,Otlem I I I I 111.m= I Wastewater Division Enhancement #14 Priority #14 Reclaimed Water Transmission Lines FY10 Enhancement. $950.000 Ongoing Cost $0 Need/Purpose: To construct reclaimed water transmission lines from the Wastewater Treatment Plant to the Ten Mile Interchange and other pans of northwest Mardian Goals: Provide infrastructure to support our Department Vision of 80M reuse of the waste stream, as well as provide infrastructure to meet the needs of our community. L Wastewater Division WWTP Automation Upgrades Enhancement #15 FY10 Enhancement. $75.000 Priority #15 Annual Ongoing Program Cost Varies Need/Purpose: To more fully Automate WWTP and collection system daily operations, as well as provide on-going programming and adjustments to the program/software Goals: Automation will allow minimization of required staff, track and document performance, and allow for better alarm and emergency response. co.t wo mo tg W1 I41I 7Y13 tQSf rd.tsrrc«t Mnwl Request SMOM sm= Ss1. Ssom Sb.00u S7rs.W0 Wastewater Division Pre -design BRO Pipeline Replacement Enhancement #16 FY10 Enhancement Cost: $75.000 Priority #16 Total Project Cost: $1,575,000 Need/Purpose: Study and pre -design a retrofit to the existing Boise River Outfall pipe to be used as a long term reclaimed water transmission line in northwest Mendian. Goals: Plan and provide infrastructure for the -- community in a strategically identified area, as well as meet the goal to reuse 80% of the waste stream. smm s+.u. u u mmo. Questions & Comments