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HomeMy WebLinkAbout2013-07-10 Budget HearingCITY OF OF MERIDIAN CITY COUNCIL MEETING SPECIAL MEETING AGENDA Wednesday, July 10, 2013 at 10:00 a.m. City Council Chambers 33 East Broadway Avenue, Meridian, Idaho 1. Roll -call Attendance: X David Zaremba X Brad Hoaglun X Charlie Rountree X Keith Bird X Mayor Tammy de Weerd 2. Adoption of the Agenda Adopted 3. City of Meridian FY2014 Budget Meeting Presentation Adjourned at 2:33 p.m. Meridian City Council Special Meeting Agenda —Wednesday, July 10, 2013 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. City of Meridian Proposed Presentation Schedule Schedule is subject to change FY2014 Budget July 10, 2013 Wednesday 10:00 am to 5:00 pm Start End Minutes 10:00 - 10:10 0:10 10:10 - 10:25 0:15 10:25 - 10:45 0:20 10:45 - 11:00 0:15 11:00 - 12:00 1:00 12:00 - 1:00 1:00 1:00 - 2:00 1:00 2:00 - 2:30 0:30 2:30 - 2:45 0:15 2:45 - 5:00 2:15 Department Council assemble, review any additional materials Utility Billing Enterprise Fund Intro (TB) Engineering Intro Wastewater Lunch (Ordered In) Water Environmental Street Lights Council budget decisions and discussion Meridian City Council Special Meeting Agenda — Wednesday, July 10, 2013 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 Meeting July 10, 2013 A special meeting of the Meridian City Council was called to order at 10:02 a.m., Wednesday, July 10, 2013, by Mayor Tammy de Weerd. Members Present: Mayor Tammy de Weerd, Charlie Rountree, Keith Bird, David Rountree and Brad Hoaglun. Others Present: Bill Nary, Jaycee Holman, Jeff Lavey, Mark Niemeyer, Stacy Kilchenmann, Todd Lavoie, Tom Barry, Dennis Keller, Tracy Crane, Kyle Radek, Clint Dolsby, Mollie Magnerich, Steve Siddoway and Dean Willis. 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: Well, I'd like to welcome you to our City Council Budget Workshop. Always like to see the youth of our community in our meetings. So, welcome to our Boy Scout troop. For the record it is, Wednesday, July 10th. It's 10:02. We will start with roll call attendance, Madam Clerk. Item 2: Adoption of the Agenda De Weerd: Item No. 2 is adoption of the agenda. Hoaglun: Madam Mayor? De Weerd: Mr. Hoaglun. Hoaglun: I move adoption of the agenda as printed. Rountree: Second. De Weerd: I have a motion and a second to adopt the agenda as printed. All those in favor say aye. All ayes. Motion carries. MOTION CARRIED: ALL AYES. Item 3: City of Meridian FY2014 Budget Meeting Presentation De Weerd: Our next item we will continue with our budget hearings that we began yesterday morning. This day -- this morning we will start with our Enterprise Fund and we have Stacy Kilchenmann, our Finance director, that will kick us off. Meridian City Council - Budget July 10, 2013 Page 2 of 65 Kilchenmann: Well, I actually have the first Enterprise Fund enhancement to present. I have handed out the slide. The slide is actually in front of you. It's for the utility billing software and I talked to you about this in March. So, as we discussed it is finally time and inevitable that we replace the Caselle utility billing software. We have to note that we purchased it in 1999 for 42,000 dollars. So, I think we have gotten our 42,000 dollars out of it. However, it has reached its limit probably a while ago and the second bullet is a formula that IT created that is rather self-explanatory on why they strongly feel that we need to --we need to move on from Caselle. It just simply can't handle the size of database we have. We also hope that when we replace it it will provide more functionality for other departments, like for water, for services, for GIS, for Public Works, and, of course, we have our other users, like Republic Services. So, the cost we use is based on a quote we got from Hansen, which is the software that water and wastewater are now using for their asset tracking. So, we -- we did not know exactly how much this will cost, so this is an estimate of how much we think it will cost. Right now we are in the process of securing a consultant to help us with the design requirements and that's the sheet I handed out like a blue org chart. So, that's the team that we have in place right now to move through this giant project. So, the first -- we are in the first phase and that is we have formed our government structure and we have -- we are down to three respondents for our RFQ for a business analyst and someone to help us with project management. So, our next stage will be interviewing those three companies and, then, making a final decision and moving into the huge and one of the most crucial stages, which is design requirements for the software. So, that is kind of it in a nutshell. I hope -- I'm -- my roll in here is the project sponsor and I thought that meant I only came and groveled for money, but I found out there was a little more required than that. But on the second page you can see the names of the people that have filled in the roles on -- in the blue boxes. So, are there any questions on that? De Weerd: Council, any questions on this enhancement request? :3R6MIi EN-ni.7IT� De Weerd: Okay. We are glad that you waited to show a chart during the Public Works presentation. We would expect that. Kilchenmann: Thank you. De Weerd: Thank you. And to our Boy Scouts, our budget hearings are not always the most entertaining. We find them very entertaining. So, this is an important part of the role that our city council members play in setting our annual budget and so you get to participate in our Enterprise Fund presentations, which, basically, talks about our utilities of water and sewer and how we provide those services to our customers. Tom Barry is our Public Works director. Welcome. Barry: Thank you, Madam Mayor, Members of the Council. My pleasure to present to you this morning, along with the staff of -- many of the staff of Public Works Department Meridian City Council - Budget July 10, 2013 Page 3 of 65 and I will just go ahead and jump in. So, let's see here. Okay. We are just going to start off with the mission of the Public Works Department, which is, again, 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. Of course, these are our guiding principals in the way we do everything in the Public Works Department. The overview of our presentation looks like this for today. We are going to talk a little bit about the basics and peculiarities of the Enterprise Fund and its relationship to the General Fund. Want to talk a little bit about department accomplishments and challenges. This is at the request of the Mayor to make sure that we put in context our budget and enlighten those who are in the community who might not understand the relationship of those accomplishments and challenges to the -- to the budget. Also talk about our budget development process, including the background and the approach that we took in assembling our budget this year and, then, we will get right into the proposed base budget and, then, also follow that up with enhancements, which the staff will present on behalf of their own divisions and, then, we will follow up with questions at the end. So, to start to -- to first start let's talk about the differences between the General Fund and Enterprise Fund. This is mostly for those in the audience and at home. I know you all understand this, but I will quickly run through this and, then, we can make this available to anybody who wants to have access to this later, but very generally the General Fund, obviously, is primarily funded from property taxes, sales taxes, and those shorts of revenues. There is a number of other sources of revenues that come, but the funding source is very different between the Enterprise Fund and the General Fund. The Enterprise Fund is primarily financed by user fees. These are sales of water and sewer services to the community members, in addition to development connection charges. That is a new home or commercial establishment that hooks up, they pay a connection charge. The use of those funds is very different and separate as well. The Enterprise Fund generally can only finance the activities of the utilities, both water and wastewater and reclaimed water, for that matter. Whereas the General Fund monies can go to finance Police, Fire, HR, Legal, IT, Finance, Parks and Rec, Community Development, city infrastructure that is not utility based, and so on and so forth. So, those are the major differences and next I wanted to jump into our department challenges and accomplishments just very briefly here. On the accomplishment side, what we have done is we have broken out this into what we call the modified score card. This is something we presented to you last year in our strategic focus presentation. So, we have five particular categories. Those are financial, operational, and employees and strategies and customers. So, that was the chart that we showed you last year. On the financials for accomplishments we have been improving in budget performance, which has been great for us. Our rate model has been updated and -- and that was presented to you in April of this year. We have reduced energy consumption in a lot of areas of our operations and that's saved us significantly in financing or our budget expenditures. And, of course, putting together the FY -2014 budget is a feat in and of itself, so we want to get -- recognize that as an accomplishment as well. On the operational side, you saw our collection program yesterday, the update we provided to you. We are very excited about those improvements. Our capital improvement plan just keeps getting better and better and now we are reaching out ten years on that capital improvement plan. Recycled water Meridian City Council - Budget July 10, 2013 Page 4 of 65 operation has been reconfigured and improved. You may recall that we were struggling for awhile there on some of the operational components of the reclaimed water program. Phase one of the GIS plan, as you heard yesterday, by the IT director, is essentially completed. We are excited about that. We have completed a number of master plans over this last year or so. Those are listed there. The water division asset management plan has been identified, it's phase one, and has been launched. That is an enormous amount of work and you will see that as a challenge going forward. Of course, split corridor has been an enormous challenge for us. We have been pulling out infrastructure that's over a hundred years old from that particular project site and so we have had a lot of operational challenges, but we have also had a lot of successes. The project itself is ahead of schedule at the moment. And, then, the processing of our standardized -- our standardized processes have improved as well. We have used e -Builder and other asset management software in order to improve how we process and organize our work and, then, the centrifuge has been fixed, which we appreciated your assistance on a few weeks ago. Strategically, you know, we continue to be proactive and preemptive in our approach on a number of different levels, both legislative and on water -related issues, including irrigation issues. On our permit we continue to be strategic with that in talking with the various agencies involved and the other jurisdictions that are going through the process. The total maximum daily load for the lower Boise River, that project being led through DEQ is something that we are also at the table on and leading regionally. At the landfill and the issues surrounding the landfill and the fees and the rate structures and those sorts of things -- and the list goes on and on. Project management has improved. We have incorporated e -Builder for our processes. Our schedules and budgets have all improved on that level. We still have work to do there, but that is, of course, a software package that you folks financed or allowed us to finance through the budget appropriation the last year and, then, workforce development, identifying and closing gaps both organizationally and individually in our organization. Customers. We continue to improve on the -- the response to both pipe breaks and water main breaks. We have had several of those this year. It was a hard winter and we noticed that we had incurred quite a bit of expense, but we had, for the most part, a very well contained response to essentially all of those, so we are pretty proud of that. We have done an enormous amount this year on public outreach. We don't need to go into that. We shared a lot of that with you yesterday. And, then, water quality management we have been trying to improve both operationally and by the incorporation of private property for treatment, which are now, also you will see today, being -- being requested for financing to improve the brown water issues that we have in some areas of town. And, then, finally on employees we have done -- we have developed a skills assessment that we have deployed in some sectors of the department, which is showing positive results. We developed individual work plans this year. We had a training database that we have developed, which allows us to track certifications, licenses, and other credentials and make sure that we don't have any sort of redundancy on the training side that is being provided by the HR department through the BEST program. Also, the employee survey that we did citywide was augmented this year in our department which a supplemental employee satisfaction survey, about 20 questions or so, and we are using that information to try to pinpoint areas where we can continue to identify improvements in the department from Meridian City Council - Budget July 10, 2013 Page 5 of 65 an employee satisfaction standpoint and, then, our safety assessment has been launched and is ongoing. We are pretty proud of that and we hope to see that work wrap up here in the next month or so. So, there is a lot more accomplishments than that, of course. You know, we give the Mayor about 17 pages worth of accomplishments for the State of the City and annual report. I figured you didn't want that. But if you're interested I can forward that to you separately. So, I just kept it to two slides for Mr. Bird. All right. Hoaglun: Mayor and Tom, if I might inject -- Barry: Yes, sir. Hoaglun: -- not to make this longer, no, I just wanted to tell you thanks. I knew Chief Niemeyer had mentioned to me how helpful you were to the Fire Department when they were doing some asset maintenance things and some other things and your department has been very responsive and helpful to other departments in the city, because you have done things they haven't and you're willing to share that and help them develop their program. So, that is appreciated. Barry: Thank you so much, Councilman Hoaglun. I appreciate that. We are not without challenges in the department, so I will move onto that and I have limited this to two slides, but we could go -- we could develop many more slides of challenges for the department as well. Essentially, the project management and execution of projects is -- is a continued challenge for us. I will tell you it is also accomplishment -- an accomplishment for us. You know, five years ago when I started with this department our execution rates were -- and that is the ability for us to complete projects on time -- was running around 45 percent. Today it's above 80 percent and -- which is great. That's a phenomenal improvement. But we think we can do better. So, we want to challenge ourselves that way. Cost of management. You know, that's a challenge for us. De Weerd: Tom? Barry: Yes, ma'am. De Weerd: Before you move on from that last one, I hope you do take time to celebrate those improvements. I mean that's phenomenal. We have come a long way over the last number of years, not only in -- in the percentages you just shared, but our employees continue to find cost savings and I don't know if you all hear it enough, how much we appreciate your attention to the fiscal line and we do recognize that you're out there looking at how we can trim those budgets, how we can save on easements or whatever it is and it is appreciated and I hope there is a way that you all take time to, one, celebrate and, two, recognize those who are out there rolling up their sleeves and doing the work of the public. So, I do want to make sure that you know how much it's appreciated. Meridian City Council - Budget July 10, 2013 Page 6 of 65 Barry: Thank you so much, Madam Mayor. On the cost management side we are challenged there. A lot of our costs are not controlled by us. For example, utility rates set by others. You might know that Idaho Power is going through a pretty substantial increase right now and, of course, it's no surprise that the wastewater treatment plant is the biggest consumer of power and natural gas in the city. So, what happens in other utilities does impact us. The same thing with fuels, for example. We have a large fleet in Public Works. So, those -- managing those costs have become and have always been, for the most part, a challenge. Future funding of capital infrastructure replacements. This is depreciation related. That continues to be a challenge for us. It's not as big a challenge as many older communities that have a lot older infrastructure than us, but this as we age will continue to become an increasing challenge for us. Utility billing software, as our finance director had mentioned, is something that is a priority and also a challenge for us. We know that that needs to be -- that that platform needs to be updated and so insuring that we have a cost effective high performing software package that integrates well with the other software platforms that we have is going to be a priority for us. Operationally our wastewater treatment discharge permit continues to be an ongoing challenge. I don't need to go into those details. Also the development of the total maximum daily load for the state, for the lower Boise River, is a challenge. Our technological plan improvements that result from those documents -- those planning and regulatory documents will continue to be challenging for us and not knowing what's going to be required yet plagues us. We know -- we have a good idea of what's coming -- very very good idea, but we don't have all the details. Capacity planning and utilization to accommodate growth will continue to be a challenge for us. You know, we have just gone through a lull in community growth and now we are seeing -- we are coming out of that and we are seeing aggressive development on many fronts and so making sure that we have capacity both on the water and wastewater side is critical. Asset management is very important as well and this is getting a handle on what we own, where it is, and what condition it is, so that we can develop accurate replacement schedules and, then, develop good financing plans to accommodate the replacement of those assets. Water conservation, another important area. Every drop we save does impact our revenue, so there is this converse relationship or inverse relationship, if you will. We want to preserve and protect the water resources that we use, but at the same time every drop that we save does impact our utility. We don't think that's going to be the case this year as here we know that surface water supply seems to be a bit threatened and so we don't know what's going to happen irrigationwise. We could have a strong shoulder season demand for water this year. Process standardization and depreciation of assets, kind of touched on those. And, then, efficiency and effectiveness. You know, we incorporate continuous process improvement in everything that we do and by doing that it requires us to consistently look at our operation and consistently try to improve it. On the customer side our challenges are being more proactive and preemptive in our approach. This takes time. It also takes data, it takes knowledge, and that's a challenge for us as we continue to close those gaps. Strategically we want to continue to have a legislative presence. That's a challenge, because every single year we get something new thrown at us that can compromise or undermine the utilities or their performance. The strategic plan update for the department is something that we are conscientious of. We are coming Meridian City Council - Budget July 10, 2013 Page 7 of 65 up to about the mid mark here from the development of our plan, so we have plans later this summer to actually go through and begin a revision on that document. Departmental accreditation has been put on hold. We do not have the resources in the senior management team or in the strategic leadership team to move that particular item forward at this point in time. However, elements of that accreditation process, meaning the BMP's, or best management practices, identified in the accreditation process -- many of those are being adhered to and developed as we go, but there hasn't been an aggressive campaign lately to move that accreditation process forward. And I touched on CPI. On the employee front we do have several challenges there as well. I have talked about these -- many of these last year during our strategic focus update, but performance compensation and classification of pay equity have been issues for a long time in our department and I'm pleased to say as a member of the subcommittee that was developed by the Mayor and the HR director I think we have made very good progress this last year or this last couple of months I should say in developing a plan and approach, which was presented to you yesterday for your consideration and I fully stand behind that and appreciate the work effort that the finance director, Mr. Nary, Chief Lavey, the Mayor and our consultants and HR manager have put towards that. So, I'm very excited about that. Also staffing. The level of staffing, you know, we are at a point here we are growing again as a city and I will show you some information a little bit later about our projects -- a number of projects and the value of those projects. Projects continue to grow in complexity, in size, and in cost and in number for that matter. You know, the number of projects kind of fluctuates year by year, but, essentially, are we staffed appropriately is one challenge for us. You know, we are struggling in inspection right now to adequately cover some of the inspection related work that's underway. The same thing in engineering. We may need to consider some engineering resources. You will notice in our capital planning going forward we have more and more capital demands on the utility. So, recruitment and retention is also a challenge for us. Particularly at the higher skilled level positions. It's been difficult to recruit for various positions and, of course, retention is very much related to the first two bullets that I just mentioned as well. Workforce development and succession planning is something that we -- we still need to work on. We haven't done very much on that front and we just haven't had an opportunity to really devote our full attention to that. So, that continues to be a challenge for us. And, then, our employee satisfaction improvement plan. I mentioned to you this year was the first year we did a supplemental survey for the entire Public Works Department and you would be surprised of the data that came back. A lot of the -- a lot of the issues that are of concern to our staff are related to those first two bullets and to succession planning as well. Finding opportunities for advancement and the pay issues and the benefits as those sorts of things are issues of concern and I don't mean that to be all negative. There are a lot of comments that came back very positive on some of those fronts as well. But what we are doing is we are combing through the data and we have developed focus groups throughout the department that are going to help us refine and develop plans to improve in those areas that have been identified as most important by the staff. So, that will be a challenge for us. Let's get back to the budget now. I want to just touch on those things and go into how we develop our budget and what it sort of looks like. Most of you have been through this -- all of you have been through this many Meridian City Council - Budget July 10, 2013 Page 8 of 65 times. The budget process for most of us directors officially starts in March or April, but for the Public Works Department our work on the budget starts way back in September. It's almost an ongoing thing. What we have to do is we have to update our capital improvement plans first and, then, incorporate all that data into our forecast and update the rate model and, then, we have to run the rate model and establish what our funding needs are going to be and balance that against what our departmental priorities are and balance that against, you know, what -- what can we do, what should we do and, then, we have to go through much of the same process the rest of the directors do, which is update our classifications of our positions, look at pay equity issues, incorporate that into the budget and, then, start the formal process, which looks like this. So, this is sort of the last several months, but -- of the process. We have taken out all of those precursor activities that are important to the development of our budget. But budget development for us is an ongoing thing. You know, we get a break between, essentially, July and October -- July and September and, then, we are back at it again working on the next year's budget. So, what goes into the development of our budget? You know, a lot of folks wonder how is it that you bring to us what you're asking for? Well, there is a lot of inputs and those inputs include our Council's strategic focus areas. Those areas that you have challenged all directors -- department directors to incorporate and to move and advance their departments forward. The citywide comprehensive plan is another input. The Public Works Department's mission and vision statements are inputs and, then, of course, the community provides input, either through comment cards or through calls in or requests or those sorts of things. We try to incorporate this into our Public Works Department strategic plan. It's a five year plan. And from this plan we are also driving facility plans and master plans and we have about seven different facility and master plans right now that guide our department in addition to our strategic plan, the comprehensive plan and other plans. So, that's why I say we are working -- not just the plan, we are working many plans. Our five year CIP and our operational plans come together and merge into the development of an annual project and program appropriation, which is what we have to present to you today. So, that's sort of what goes into the development of our budget and the various areas that we rely on to help guide the decision-making process in the development of our budget. So, we are going to talk with you a little bit about what we prioritize, how we approach the development of our budget and the first thing -- and this is no particular priority, these are all priorities that I'm going to share with you now. So, we incorporated the following principles in the preparation of our 2014 proposed budget. The first one is we must maintain and meet current regulatory and safety requirements. That's a priority for us. We want to preserve our product and service quality, area, and delivery levels. We want to adequately protect the existing infrastructure and maintain that existing infrastructure and not let it deteriorate. We also want to include measured expansion of our strategic assets and our infrastructure. We don't want to get too far ahead and build ahead of ourselves, but we also don't want to be behind and have to deal with moratoriums and other sorts of negative connotations. We want to use just -in -time financing. We shared several years of data now that shows that this is a very good approach to managing the development of capital projects by leveraging more money for more projects and that has done us well. So, we continue to use that approach. We want to fully utilize our technological resources at every opportunity that we can, but not Meridian City Council - Budget July 10, 2013 Page 9 of 65 be haphazard in our implementation of those types of resources. We want to sufficiently fund and employ workforce training strategies. We have improved -- made many improvements over the last several years and we continue to try to improve on that particular strategy. The skills assessment, which is being rolled out division by division is also an opportunity for improvement there. As well we want to incorporate performance based budgeting principles. We don't want to finance things that don't work and we want to finance the things that do work. So, we incorporate that into the development of our budget. We employ cost management strategies as appropriate and maximize our operational efficiencies and cost avoidance opportunities. We do not want to invest in things we know are going to go away or are going to become obsolete. Let's take lift stations for example. You will see in our presentation today some of our requests to take several lift stations off line, because -- and that is a cost avoidance as much as it is a cost savings strategy. While it will cost to take that lift station off line, the ongoing operational savings -- and, more importantly, the avoidance of cost required to upgrade those lift stations through the telemetry networks that we have to install in them goes away. So, we want to incorporate those strategies as well. We will only ask for what is needed. We don't -- we don't put icing -- we don't play games and we don't ask for things that we don't need, so that we can simply sacrifice them later to get what we want. We ask for what we want and that's what this budget includes as well. And, then, of course, we continue to empower our budget stewards and that is why you will see many of them come and present to you today, because they are seeking ownership and responsibility for the administration and the request of their budget. So, a couple key points quickly. The proposed budget that we are presenting to you is consistent with the rate model. We have modeled this and incorporated all of this information into the rate. The rates were not adjusted this year. We did show that we were going to have to use ending fund balance in order to cover our costs this year and that is true. You have seen that in the budget reports. We have continued to aggressively manage the budget process, both maintaining operational and maintenance costs, focusing on execution rates and trying to be cost avoidance focused as I mentioned. Regulatory requirements I have already mentioned. Depreciation. We are replacing some depreciating assets at this point in time, although we don't have as formal program as we would like. That is important for us. And, then, we also are continuing with the pay go strategy. That's again pay as you go, which means that what we do is we safe up our money until we can have enough of it to, then, spend it at some other point in time. We are not borrowing. We don't have bonds. We have no debt for this utility, as you all know. And that strategy has served us very well. But what it requires is that the fund balance grow and shrink and grow and shrink. This year we are going to be pulling about seven million from the ending fund balance in order to cover the difference in what we anticipate as projected revenues from expenditures in the department. And that, again, was modeled and we can accommodate that by forecasting into the future those needs and anticipating those in advance. There is a large amount of folks that go into putting our budget together and so the assembly and the vetting of this budget involves many people, which I have listed here and I won't go through all of them, but I do want to thank the Mayor and our Council liaison Charlie Rountree, who have helped us and guided us in the development of this budget as well. So, with that let's get to the proposed budget and very quickly we will get to the personnel and operating expenses. Meridian City Council - Budget July 10, 2013 Page 10 of 65 I'm pleased to report, as I have for many years, that we have been able to achieve savings year after year for the past three years on both personnel and operations. We have achieved savings in those three years of about 27 to 30 percent. Somewhere in that range. This year we cannot achieve that. We are actually increasing slightly, about 4.7 percent across the entire department, our operation and personnel costs. A lot of this is driven by those other factors that we don't control, like energy, gas, electricity, those sorts of things. And some of it is just related to ongoing increases that are related to inflationary costs. Some of it is related to capital construction costs that are increasing. The price of material and labor and those sorts of things. So, we do show 4.7 percent increase across the board. Some areas are higher than others. Wastewater continues to be an expensive operation for us, but we would all agree it is an important operation. The number of enhancements that we have provided to you over the past several years is compared here. We are fairly consistent with the number of projects or number of enhancements that we've had until the last two years, fiscal year'13 and our proposed '14. What you will see is a similar number of enhancements, but an enormous difference in cost and that's, again, related to size, complexity, value and that does require quite a bit more funding for us. So, you will see that as you go through today. This is the Enterprise Fund revenue projections over the past. We appreciate the finance director and her staff helping us with this. And, essentially, what you will see is that total revenues are coming back over the year -- or over the last couple of years. You will see the bump in FY -12 actual. We expect a similar bump in FY -13. This FY -13 number there is a budgeted number for total revenue. So far year to date 19.6 million that's been collected. That's June, I should say, numbers. We continue with the trend of about 2.2 million in revenue on a monthly basis, not including what might happen for revenues associated with a drier summer that come in from water, we will expect to see the actual total revenue for FY -13 go above 26 million -- about 26.5 is the projection that we are putting on it. So, we will expect to see the trends continue and have another bump in '13 for revenue. What that -- what that means is that's important, because, obviously, the more revenue we take in the less the gap is between financing of -- that will be used with ending fund balance for the department. Okay. With that I think I have covered what I wanted to cover with you, so we will go ahead and get into the details of the enhancements and first off I'm going to have the environmental division. Mollie Mangerich is our environmental division manager. She's going to walk us through her enhancements and she's also going to represent some of the enhancements for the Public Works administration division. Thank you, Mollie. Mangerich: Thanks, Tom. Thank you. Good morning, Madam Mayor and Council Members. De Weerd: Good Morning. Mangerich: I am bringing for your consideration today a request for one asset replacement for office chairs, two budget enhancements related to public education and one enhancement related to office area improvements. The asset replacement request in front of you today for the value of 3,600 dollars and it is needed to replace the work Meridian City Council - Budget July 10, 2013 Page 11 of 65 station chairs for both Public Works and engineering staff. Replacement of these chairs has been driven by age, condition, and the inadequate design that we currently have lack the ergonomic requirements for staff who spend of their day sitting in their work stations. Do I have any questions on that asset request? All right. I will continue to the next. Oh, boy. Our enhancement number one request is for the dollar value of 14,000 dollars. This request is being used for the completion of a graphics animation, which we have started this fiscal year. It's entitled It Starts At Home, Meridian Solid Waste and Recycling Services. Currently this year we are in development of this animation with the financial assistance provided from a grant from the Meridian Community Recycling Fund and also a generous donation by our solid waste franchiser Republic Services. This animation will highlight the trash recycling and composting services available to our rate payers, including the clean up events that happen in the spring and the fall and Christmas tree recycling. This includes also free weekly household hazardous waste collection events that are available to households at no charge and our business hazardous waste disposal options that we provide through technical services by the provider. We will also highlight our Meridian Community Recycling Fund and citizen participation through our Solid Waste Advisory Commission. This animation will provide a lively display of where does our trash and recycling go, from curb, to transfer, to landfill stations, or off to the markets on the west coast. The benefits will enhance the understanding and increase the participation of the set out of recyclables and the utilization of these wonderful seasonal cleanups that we have available to our citizens, and, then, the animation we will be distributing through a variety of resources, both classroom, homeowners association, direct public education and outreach, You -Tube utilization, scouts, and service organizations. Our second enhancement request is also focused on public education. A series focused on our utilities. This animation is for the amount of 40,000 dollar request and it is a joint enhancement proffered to you for consideration for both our water division and environmental division. This animation is designed to engage a broad audience about our municipal gates and water systems, from source to spigot viewers will discover how we obtained our water from our aquifer and the infrastructure in place that stores, distributes, and boots potable, safe, clean drinking water to our citizens throughout the city. The animation will integrate objectives from both our Meridian source water protection plan and our Meridian water conservation plans. So, we will show how our Treasure Valley aquifers function. We will educate our viewers as to the amount of potable water that we use and introduce them through an animated series of peak demands and how we reach those challenges and meet those challenges on our daily demand within our community. We will illustrate how we protective our groundwater quality from contamination and direct our viewers to available free services locally to divert potential pollutants from entering our groundwater. We will encourage simple water conservation strategies that are easy to deploy, both inside and outside the house. Water conservation will become more and more of an issue as we enter into a cycle of water scarcity period. The benefits are to enhance the understanding and increasing that stewardship behavior on behalf of our Meridian drinking water utility and the drinking water resources. Increasing our educational and outreach capability. Again, distributing through CD or electronic format to teachers, science classes, age groups, cub scouts, onsite education and we have a group of Facebook, thanks to Ken Corder, through our homeowners associations that Meridian City Council - Budget July 10, 2013 Page 12 of 65 we can provide information to as well and this animation will be very appropriate for that rate payer group. De Weerd: Mollie, before you move on, do you have -- I think that your wastewater treatment plant video was very well done and I know I have already told you that, but did you have a -- a citizen group that helped give you feedback on what some of the questions are for water, for example, maybe top of the mind right now is brown water and certainly if you look at any of the calls that we do end up getting it's usually on that. I'm very pleased to say we don't get many like we did a number of years ago, but how do you decide what all you put in these videos? Mangerich: We go through a solicitation program with certain stake holders. We do invite a member of the community -- for example; on the solid waste level we will bring a member from our solid waste advisory commission or a particularly interested person and, then, we go through a very lengthy story boarding process where we identify what are your perceived needs, what is the perceived information that you need to better utilize our utility for your benefit and also conserve the natural resources which our utilities are based upon. So, they are inclusive of multiple stakeholders. De Weerd: Okay. Will you include brown water in there, please? Mangerich: Absolutely. Yes. And I guess use that synonymously with aquifer. Groundwater protection. Yes. De Weerd: Thank you. Mangerich: The final enhancement that we bring for you today is a joint request from both the environmental division and our construction division. This enhancement is to make -- for a dollar value of 15,000 dollars. Our joint enhancement request is to make improvements to the environmental and construction division work areas to increase the effectiveness and organization of our workplace. I will address the environmental division component. On your slide you will see the -- that's a current condition on a good day, the storage of the materials and inventory that the environmental division has produced, accumulated and uses through a variety of education and outreach events. We simply surpass the available space to us, including utilization of those wonderful cages downstairs where we can store large -- large ticket items, demonstration bins, et cetera. Oh, I'm sorry. One more thing. Underneath this -- we are partners in crime up there. I wanted to say on the environmental division inventory storage area that these will be secured, they will be lockable and so we will not be available to entry otherwise than staff. So, we feel very good about that. And also that the vendors that Max and I have worked with in coming up with this schematic for you are the vendors that are consistent with the design standards used within City Hall and so they will look appropriate and blend into other office amenities we have in our City Hall. Jensen: Looking at the floor plan on the left side of the screen you can see that our current office area up there is -- it's open space very similar to a loft apartment, which is Meridian City Council - Budget July 10, 2013 Page 13 of 65 great if you're 18 or 20 years old, but it's not so great as far as work space and dedicated areas to perform certain functions. So, what we would like to do is put in cubicle walls to organize work space. That would organize the areas, as well as clean up the areas and have specific areas for specific functions. We would also like to include a plan review table, so that we can review plans -- the inspectors can review the plans internally with PMs or themselves, as well as contractors in a dedicated area that they can perform that function in. There will be a GPS table where the inspectors can come in from the field and download the features that they collected on the GPS units themselves. There will be a plan rack in the corner as well. The -- the other room, the nine foot by nine foot seven room will be a dedicated room for future expansion for future staff needs. All the furniture that will be in this area -- purchased for this area will be the same kind and make as exists in cubicle furniture and that will promote a consistent clean look to the area and organize the area better. De Weerd: Thank you, Max. Council, any questions? Bird: I have none. De Weerd: Okay. Thank you. Mangerich: Thanks very much. De Weerd: Thank you, Mollie. Thank you, Max. And since I don't know what your schedule is, since you're not following the schedule we were given, I see either Tracy -- wastewater treatment plant. Bird: Are we doing wastewater? De Weerd: Yes? Tracy. Crane: Good Morning, Madam Mayor, Members of the Council. De Weerd: Good morning. Crane: Thank you for your time today. Clint and I will be presenting the wastewater capital replacements and enhancements. For FY -14 we have one capital replacement, which is for replacement media for our tertiary filters. In '08 we installed three new tertiary filters that had a five year warranty on the media, which has now run out. We are proposing purchasing media for one filter. It's not really clear how long it will last past the warranty period, so what we are proposing is buying enough media to replace one filter this year. So, as the need -- as it nears the end of its life cycle we have some on hand. Our current flows we are required to have at least two filters running all the time and we have newer media -- the bigger diamond filter as well. So, with that I will stand for any questions on the capital replacement. We are proposing 16 enhancements that Clint and I will go through in detail. I think, Clint, you're -- Meridian City Council - Budget July 10, 2013 Page 14 of 65 Dolsby: Enhancement number one is for the third and final year of the design and construction of the fermentation phase one project at the wastewater treatment plant for the conversion of one of the original primary clarifiers and digesters to fermentation. This project will enable us to further help to reduce phosphorous. Also, we will be doing it biologically, so we can lower the consumption of chemicals and also natural gas and potentially increase digester capacity as well. So, this will fund the completion of construction of this project. Crane: So, enhancement two funds the second and final phases of two year just -in - time projects for the construction and laboratory expansion, as well as fixtures and furnishings. You recently received a revised enhancement for this project. At the time the enhancements were submitted the laboratory building was about 50 percent complete and more detail design work has been done and that revised enhancement reflects the current estimates. The primary reason for the cost increase is the HVAC unit. We will be testing down to the microgram or parts per billion and so all the laboratory glassware and instrumentation is calibrated at 20 degrees C, so it's important to make sure that when we start getting down that low temperature fluctuations can be - - can be huge. The project will provide us stability to accurately detect to those low levels and we think that's of vital importance for our future permit compliance. Enhancement three funds the second and final phase of a two year project for constructing the admin building and the retrofit of the existing building as well, providing furnishings and fixtures for both. As you're aware we have talked several times that the wastewater division is in need of additional office and work space and this project will provide the space, as well as improved employee facilities, expanded break rooms, locker rooms, training facilities, conference rooms, as well as an updated SCADA control center for the plant operations. The wastewater division is very excited about this project. Part of enhancement three, but we wanted to call out separately was 150,000 dollars that we were asking for in interpretive center exhibits. On March 12th we came before the Council and discussed the possibility and at that time the -- there were concerns about space and types of displays that were conveyed, so we wanted to share our research and call it out separately. On the slide there you can see the space. Obviously the building was designed to accommodate future build out -- future needs. So, we have some space we can designate. As far as displays, we visited with a firm that's done some major works, including the Boise airport, the state capital building, and the Boise water shed. Pictured on the slide are a couple of types of enhancements and also their cost and as you might imagine you can spend as much as you want if you know -- I believe the water shed -- their initial goal was a million dollars and I added up the numbers we got in and they have spent well over 700,000 dollars on the exhibits in there. So, we think this 150,000 dollars would fund a few modest displays that would help us with our public out reach. Enhancement four provides funding for our aeration basin control upgrades. As you know, that's -- power for aeration is probably the largest cost in our utilities. We recently installed high efficiency turbo blowers and we had some programming done, so that we could dial back the dissolved oxygen content in the basins. What we found out that one of these probes the calibration dropped off just a little bit and we started getting ammonia spikes, because we dialed down lower, some of that flexibility comes out and so with this -- this will add some additional probes out at Meridian City Council - Budget July 10, 2013 Page 15 of 65 the basin so that if one drifts off there is others and POCs would compare the two. Also some ammonia probes on the end, so that we would catch those ammonia spikes. The new permit we are expecting a very low ammonia limit as well and this will help us optimize -- further optimize that energy potential that we -- energy savings potential from the new turbo blowers. Dolsby: Enhancement five is year four of a five year effort to improve the quality of our SCADA system. It's a system that helps us communicate from the wastewater plant to all of the lift stations and also you will see a similar enhancement from the water division. In fiscal year'14 we are looking to purchase some control panels and additional equipment for the lift stations, as well as we would like to design and do a little bit a partial construction of a radio tower similar to the tower at the water division that will allow us to communicate with remote sites. Crane: Enhancement six provides funding for the first phase of a two year just -in -time project totaling approximately 1.7 million dollars to construct a new wastewater equipment maintenance shop. The existing building was designed and constructed 20 years ago. This is part of our -- what we call support facilities plan that we have come and we have talked about several times. It's 1,400 square foot. It's undersized and underequipped for our current operation. The approach for this building would be similar to lab and admin in that it would be designed for future build out, so that we don't have to --hopefully we don't have to expand it again. It will be 10,000 square feet and designed to accommodate the needs of the division at full build out. Approval of this project will provide tools, equipment, space needed -- and space needed to repair most of the plant's equipment on site, which should help with decreased equipment down time, increase productivity and a decrease in outsourcing. Dolsby: Enhancement seven and enhancement eight are ongoing enhancements we bring before you each and every year for our sewer collection system. Enhancement seven is for sewer main replacements. It funds the design and construction of infrastructure replacements for aging infrastructure. Many times these are identified by our sewer TV and hammer crew when they are going around the collection system. They bring projects to us and, then, we -- engineering would design and construct those projects. Notable projects for fiscal year'14 include the 8th Street sewer replacement phase two of that to get the sewer out of alleyways and people's backyards. Sewer replacement near the Big O Tires and also sewer replacement on 3rd Street to alleviate some shared services that are on that street. Enhancement number eight is for sewer line extension. Many times this is used to fund sewer improvements in conjunction with Ada County Highway District road widening projects, such as the split corridor and Franklin Road projects this fiscal year. However, in fiscal year'14 we don't have projects identified by the Ada County Highway District that we will be participating in, so this will fund the Ten Mile diversion sewer trunk extension, which will allow us to abandon both the Whitestone and Landing lift stations, which will phase not only the operation and maintenance costs from those lift stations, but the SCADA and telemetry upgrades that were mentioned earlier at those two lift stations. Enhancement nine provides funding for integrated laboratory information management system or LIMS. Meridian City Council - Budget July 10, 2013 Page 16 of 65 The lab produces a large amount of data that has to be QC'd and stored and secured in a manner that's easily accessible. LIMS provides a way of automating the data handling part of our laboratory. Right now our laboratory is in two -- all our data is contained in two different databases that we constantly go back and forth to make sure that they are the same. Some of the benefits include automated sample logging and tracking and management, so the samples are bar coded and the data quality is improved because the instruments are actually linked in. So, as the results come out it automatically populates. Information could be stored at the click of a button and you retrieve years of data easily without the need of traditional archiving. Considering the new laboratory expansion project and the expected increased workload associated with the new permit, LIMS will help the laboratory improve efficiency and productivity and the lab staff has and would continue to work with IT for product selection and implementation should this be approved. Tom is going to -- De Weerd: The big gun, uh? Barry: Thank you, Tracy. Madam Mayor, Members of the Council, enhancement number ten in the amount of 340,000 dollars is to finance wastewater treatment fiber optics infrastructure. There is a similar enhancement for an additional funding amount in the water enhancements that will be shared with you a little bit later in our presentation. So, this is simply the wastewater portion. Now, yesterday you heard from our IT manager that essentially the city has partnered with a firm that would allow us to develop fiber in and around the city and the network you see here is the network that was shared with you yesterday. The idea is this service provider would be able to install a single line to 13 or so different facilities around the city and provide dark fiber -- four strands of dark fiber to and from those particular facilities. That would be maintained on a 20 year contract with an option for extension later. Now, we didn't know in the development of our budget several months ago whether or not there would be funding in the General Fund to allow for that and since we do realize that there has been funding made available to finance that portion of the fiber project. That fiber project as it was presented to you yesterday would allow the connection of both the water administration building, as well as the wastewater treatment plant under that proposal. However, there is still merit in considering an additional fiber expansion. Moreover, that -- this proposal was developed in lieu of the Council's possible decision not to finance the other fiber project, if that makes sense. So, what I mean to say is, essentially, fiber is critical for the operation of our wastewater and water division buildings if the city does not choose to finance the other fiber project identified by the IT Department, we would very much want to see this particular project for both water and wastewater move forward. However, even if the Council desires to finance the IT proposal, which we support in Public Works, there is still merit in considering an additional expansion that the Public Works Department would like to invest and I wanted to talk to you about those merits. First of all, probably the most important component is that we would own the infrastructure and we could -- and we would operate the infrastructure under a service agreement similar to what was identified yesterday with the separate provider working with IT. Now, the importance there is that we know that the water division building and the wastewater division building aren't going anywhere and that we are Meridian City Council - Budget July 10, 2013 Page 17 of 65 trying to remove network information -- or network systems out of there and use the City Hall system as the primary system for all information. If for some reason there is a service problem with either maintenance or the contract or those sorts of things, the city would have this conduit that -- which is alternative to the conduits that have been identified under the IT plans and I will point those out here now, you will see the dashed blue lines that run from City Hall in the center of the map, up Meridian Road and, then, at the Borup trail it goes along the trail to the water division building. That dotted blue line represents the water division component, which we haven't talked about yet, the pricing of. This particular enhancement talks about the wastewater division component, which is the continuation of that line along the Borup Trail or Five Mile Creek all the way to the treatment plant as in the dotted green line. Probably most important is the loopings that would be allowed through this particular system. Yesterday you had remarked on the importance of a looped system. This particular enhancement would not only give us certainties for both water and wastewater, it would give us redundancy in the event of a failure for the majority of the assets that will be connected to the fiber system and what I mean to say by that is if the fiber was severed in that weak area the fiber signal can travel in the opposite direction and pick up those facilities that would otherwise have been cut off. So, we still feel that there is merit, since we are talking, essentially, about the police station, City Hall, water, wastewater, several fire stations, and so on and so forth. So -- and those fire stations are also important to us, because we are pulling off -- our telemetry information goes to several of the fire stations wirelessly and, then, from the fire stations goes into terminals that, then, get sent back to the treatment plant and eventually back to City Hall. So, there are benefits here to considering a little bit broader utilization of a fiber network that is more robust and has redundancy built into it. Now, if the Council did not decide to finance this particular enhancement and the accompanying water enhancement, the water division and the wastewater division buildings would still be operationally connected with fiber assuming the City Council financed the IT plans and the inverse is also true, if we finance only this plan, the Public Works plan, we would have water and wastewater connected to City Hall, but none of the other facilities would. So, we will leave that with you. We feel that either way we are hoping that the Council will allow some sort of advancement of a fiber network to be incorporated communitywide to allow us to connect these assets. This is a -- at first was developed as an alternative in the event Council did not want to move forward on the IT plan, but have become actually an important looped system that could be considered additionally with the plan that has been proposed by the IT Department. So, I know that sounds a little bit involved. I will pause for questions on this particular one, since I know it's related to the General Fund project. De Weerd: Tom, I guess my question at this point is how it relates to request number five on the SCADA system updates with the tower. Barry: Uh-huh. De Weerd: Will that be still needed when you have the fiber enhancement? Meridian City Council - Budget July 10, 2013 Page 18 of 65 Barry: Yes, Madam Mayor, it will. What happens is the fiber network that we are talking about, whether it's just the IT plan or just the Public Works plan or both, will not reach -- that fiber will not reach the majority of our removed sites, wells, and lift stations. Those things still have to send signals over the airwaves and what we are trying to do is shorten those signal lengths by allowing the receiving of those signatures at either fire stations or water or wastewater with the radio antenna that we have set up or are proposing as part of the telemetry upgrades. De Weerd: Okay. Thank you. Any questions? Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I see there is a reason to connect the water tower end of this, which leads me to ask is there any reason to connect the other currently one and eventually two or three or four storage tanks into it. I see you have not routed up Meridian Road to Settlers Park where we currently have a large storage. Is there any reason to connect those? Barry: It's really a matter of cost and return on investment. So, those sites are remotely sent signals. When we developed the SCADA master plan that SCADA master plan incorporated both hardwire and over the airwaves communications and so when you look at that plan, which I don't have here in front of you, this is just the fiber component, but if you look at the over airwaves plan you will see that there is overlap in certain areas that allow for the transmission of those signals to and from sites that we are trying to hardwire. If we tried to run fiber to every single remote site, for example, all of our reservoirs, it would be extremely expensive. Now, would we like that? You bet we would like that. But at this point in time we figured we would give you something that we thought was reasonable, affordable, and responsible at this point in time and, then, maybe we can look for something like that in the future as an opportunistic expansion of partnerships and those sorts of things later. So, it's a great question. This does not completely devoid us of over the airwaves communication, but it definitely shortens telemetry system communications and allows for a lot more robust information sharing, particularly between the main hubs which are fire stations and our water and wastewater facilities with City Hall. Zaremba: Thank you. Barry: You bet. De Weerd: Anything else from Council? Bird: I have none at this time. De Weerd: Thank you. Meridian City Council - Budget July 10, 2013 Page 19 of 65 Barry: Thank you. Crane: So, enhancement 11 provides funding for road repairs, some additional asphalt, and a stormwater retention facility at the plant site. The road the trucks use to access our bulk chemical facility, as well as our biosolids storage, you can see the picture there, those -- those trucks that start to break down and it's in need of repair or replacement. Also some additional asphalt was needed around our new digesters. When that project was completed most of that was covered with recycled asphalt and gravel. Since then we did a northside paving project in 2010 and got most of that replaced, but there is still some area around the digesters that are in need of asphalt and, additionally, a storm water retention facility is needed. The one picture over there you can see that we have a valley gutter that essentially leads to nowhere and just makes a big pond. So, what we want to do is engineer a stormwater retention facility, either in that spot or a little bit further down where we can combine a couple of valley gutters, so that we are controlling the runoff as we grow in all of the spaces on the site. Enhancement 12 provides funding for the design and installation of an irrigation system in the back 16 acres of the plant, as well as possibly purchase of the equipment needed to maintain the property. An assessment of the site as far as crops and types and water usage has been done and the two crops that appeared most suitable for the application were alfalfa and grass for forage. However, growing forage crops can be a problem, because it can interfere with our ability to put water out on a field when those crops are cut and drying and we have talked -- due to the small size and the high cost of farm equipment it's really impossible for too small for us to invest in the farming infrastructure and so as a result of -- it appears the best option might be to just install a sprinkler system and plant turf grass, because that could provide us approximately 175,000 gallons a day of effluent disposal and one important thing is it's a daytime use, so our parks and some of the common spaces have to be nighttime and can only get in in periods of nonuse, where in the back of our plant that can help balance out the load on our reuse system and it can give us some daytime use for the water. Enhancement 13 provides funding to design the expansion of our UV disinfection system. This is the first phase of a two year just -in -time project with a total cost of approximately a million dollars. Design would be completed in '14, construction to follow in FY -15 and although our UV capacity is adequate for our existing flows, it does represent one of our smallest unit processes capacitywise. The current system consists of two channels, but each contains 7.5 MGD of inspection capacity or 15 MGD total. The current firm capacity is ten MGD and they rate that with one of the single units out of service. However, if we have to do maintenance on a channel and shut one side down, we only have seven and a half MGD of capacity to do the channel maintenance. So, what this design would do is it would either design a third channel or some other stand alone type UV system, so that if we had to do maintenance on either channel, which you have to do from time to time, we wouldn't lose half of our disinfection capacity while we were doing it. Dolsby: Enhancement 14 is for the first year of a two year project valued at approximately 1.2 million dollars to construct a third trunk line from the North Black Cat lift station, which is located on Black Cat between Ustick and McMillan, down to the Meridian City Council - Budget July 10, 2013 Page 20 of 65 corner of Ustick and Black Cat, approximately that corner. It will enable us to abandon the third largest lift station in the city at Ashford Greens and wrap that flow to the North Black Cat lift station. Also open up an area of northwest Meridian for future development and eliminate potentially a source of odors in the Ashford Greens neighborhood. Enhancement number 15 is for frontage improvements at the wastewater treatment plant. Now, the focus of this enhancement is to address visibility, safety, access, and security concerns at the wastewater plant. Not only that, it will improve the access for RVs for our new RV dump that we are getting ready to start construction on and prevent backup of RV customers onto Ten Mile Road and this enhancement will provide landscape screening to the wastewater treatment plant neighbors, such as the new subdivisions going in across the street on the east side of Ten Mile Road next to the wastewater plant. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Question. On enhancement 14 -- this is just a question, Clint. What -- when you take them off line, the lift stations, what do we do with them? Dolsby: Madam Mayor and Councilman Bird, typically we salvage everything we can out of that lift station, like the pumps and the control panels and different things that we can utilize and we will take those back to the wastewater plant and some of the in - ground infrastructure, obviously, just abandon in place. Bird: And just fill the -- Dolsby: Yes. Bird: Okay. De Weerd: So, what do we do? Because that was a question I had. What do we do, then, with the property? Dolsby: Madam Mayor, it depends on kind of a case-by-case basis. Like I know in the past in other subdivisions where we have had a lift station lot and a smaller lift station that we have had in just to serve the subdivision, we have -- sometimes we will turn it back over to the HOA for the subdivision, other times if it makes sense maybe we need a well lot in that part of Meridian, we will keep the lot. But we try not to just keep the lot and not really do anything with it, because we want to either return it to the HOA so they can take care of it -- but we don't just keep the lot and it becomes kind of an overgrown kind of eye sore. De Weerd: Well, in Thousand Springs that one made sense. In this one it's -- this is a pretty big piece and I don't know if it's -- if it's in an HOA area. Meridian City Council - Budget July 10, 2013 Page 21 of 65 Rountree: It's in Ashford Greens. De Weerd: Is it? Bird: It's an HOA, isn't it? Rountree: Yeah. De Weerd: So -- okay. Bird: Do we actually own -- excuse me, Mayor. De Weerd: Uh-huh. Bird: Do we actually own the property or is it on an easement or -- Dolsby: Madam Mayor, Councilman Bird, I believe we own the property. I'm not a hundred percent sure. But that's how we typically would handle construction of a lift station is we would insist on actually owning the property. Nary: Madam Mayor? Madam Mayor, Members of the Council, maybe I will supplement that, too. We have had a variety of different types of negotiations on these. Clint is exactly right. If we can turn it back to the HOA sometimes we are able to do that. We haven't got to the point of having to auction any of those pieces off yet. We have tried to work with HOAs, because we don't want the ongoing maintenance issue. There probably will be occasions in the future where the HOA won't want it, the adjoining property owners probably would want it, so auctioning it is probably the most likely result, we just haven't got to that yet. So far we have been able to negotiate both the maintenance and ongoing use of the property for -- with the HOA, but we probably at some point may end up auctioning them directly or something like that. Bird: But it's excess property, is that how we do it, Bill? Nary: Yes. Bird: Thank you. Thanks, Clint. Crane: Our final enhancement, enhancement 16, provides funding for purchase of tools, safety equipment, and some spare parts for important pieces of plant equipment. The wastewater division staff has inventoried and prioritized parts, a list of plant equipment, and unit processes. This enhancement will help insure that we have spare parts, such as gear boxes for clarifiers, for instance, on hand for the most critical of those pieces. It also would provide for the purchase of a parts washer, an infrared camera, and vibration analyzer, additionally, a hoist for confined space and some additional hand and power tools. Cost savings to the city should be seen through more Meridian City Council - Budget July 10, 2013 Page 22 of 65 repairs and maintenance being done in-house, as well as the introduction of predictive maintenance with the vibration analysis. De Weerd: So, that second picture is a hoist, instead of like one of those kid harnesses. We are putting our employees now in harnesses. Barry: Well, it depends on what staff is in there. Crane: Yeah. That's a fall protection. It's a hoist. Bird: Madam Mayor, may I ask -- De Weerd: Mr. Bird. Bird: You're on safety now. How often do you have safety meetings within your employees out there and do we have an outside safety source come in every once -- once a year to look at it, like the companies that we have that go on construction jobs, do we do that, Trace? Crane: Councilman Bird, that's an excellent question and last year's budget presentation we had some discussion and an outside safety consultant has recently been hired on board and they have been meeting with all of my staff and gone through the whole facility and they are getting ready to put together plans and recommendations as -- so, that they have been out there, they have been all over our site, including water -- in fact, all of Public Works, including offices and everything. So, meeting with all of Public Works as a whole and, then, we have a full team of focus group type of people from all over Public Works that have been working with them that are going to put together some recommendations for us. So, that's in process right now going on. I think we are getting close to wrapping it up. But those meetings have been going on for the past few months. I know they were out at my facility last month and they were at water before that. I'm not sure when we will have it all wrapped up, but we should have something to come back and present to you as far as what their recommendations are on the safety side. Bird: And in your table top meetings with your employees -- Crane: Yes. Bird: -- we could be smart for -- and I don't know if OSHA gets public deals or not, but you should keep minutes and --just, you know, verbal minutes and stuff and have it and keep it on record. It's not only nice for your insurance company, but also if OSHA or somebody comes out -- safety is very very important and we don't want to ever see anybody get injured because of unsafe conditions or equipment. Nary: Madam Mayor? Meridian City Council - Budget July 10, 2013 Page 23 of 65 De Weerd: Mr. Nary. Nary: Madam Mayor, Members of the Council, Councilman Bird, they have also -- their safety committee is coordinated with my office, with the State Insurance Fund, we have ICRMP with our risk management and EIP, so I mean it is a very coordinated effort with both their consultant, as well as the staff members that are part of their safety group. Bird: And we got -- you know, that -- that area has to be very safe, because it can be dangerous. We got a lot of equipment out there. Crane: With that we can stand for questions on any of the wastewater enhancements. De Weerd: Tracy, I guess on waste -- on enhancement number eight, I think Clint's enhancement on the sewer line extension, I know you mentioned that ACHD didn't have identified road projects. I -- I thought that Ten Mile between Cherry and Ustick was on the 2014 list and I also seemed to recall Franklin from Ten Mile to Black Cat as being there. So, you may want to -- even -- I know you do the just in time and we will mess up the 80 percent spent type thing, but better be prepared than -- than not. Crane: Madam Mayor, I will check on the Ten Mile, Cherry to Ustick, but the Franklin, Ten Mile to Black Cat I believe it's -- the latest I have heard -- and this could have changed -- it was '15 is what I -- De Weerd: I know that they are doing a public hearing here soon and I just can't -- I remember the notice, I just can't remember the date, so -- Crane: Okay. De Weerd: If you will take a look at least on the Ten Mile, because I know they did the public hearing on that sometime ago. Rountree: They moved that date a couple times. De Weerd: Yeah. Rountree: As they find budget they -- De Weerd: It is a priority. Rountree: It's a priority. De Weerd: Yeah. Crane: Thank you. De Weerd: Any questions -- Meridian City Council - Budget July 10, 2013 Page 24 of 65 Zaremba: Madam Mayor? De Weerd: Yeah. Mr. Zaremba. Zaremba: Thank you. De Weerd: You want to turn your mike on? Zaremba: Sorry. I turned it off because I was going to cough and I didn't want to blow your ears out. Thank you. Let's see. Enhancement seven and probably -- one of you mentioned that these are repeat enhancements every year and I guess the question is is there a way to say, okay, hold over all infrastructure, we are going to replace five percent of it every year, which means we have a 20 year cycle and just put it in the base budget? I understand it being an enhancement again this year, but I'm just thinking in the future can that be a predictable base budget item? De Weerd: Tom. Barry: Councilman Zaremba, that's a great question and we seem to get it every year and I know the Finance Department is cued up to answer this question, so I can tell you what we would desire, but I believe that the Finance Department has a good reason for the way that they require us to request these funds, so I'm going to slowly talk while they work out their answer. Zaremba: Well, as you mentioned, I think one or more of us have asked this question probably every year, but -- at this point or another point, so I'm forgetting what the answer was. It seems to me we have had both sides of the answer, so -- Kilchenmann: Madam Mayor, Councilman Zaremba, well, we have a different answer every year to kind of keep it lively. I think the reason we don't do it is because we don't exactly know what the need for replacement is going to be in a coming year, so to just say we are going to replace five percent, five percent, five percent might not be accurate and I think Todd also, when his -- what he brought up is it promotes discussion, you know, we go over what these items are every year. In same cases we have made changes. I can't -- I think -- yeah. Meters. We have done some things in fire. Like we put employees you know, we have increased the base budget to make routine replacements. De Weerd: I guess I would just add to this. We worked with each of our departments to -- as Tom mentioned in his introductory remarks ask for only what is needed and we have asked for specifics on many different things that used to be a guesstimate and that way it gives you the details and if you were asked you have those details. So, we are trying to make budgeting more with purpose and this exercise really lends that. So, it is on specifics and I appreciate Council, because what -- while we have this approach we also understand that unexpected projects are going to happen and it's been building Meridian City Council - Budget July 10, 2013 Page 25 of 65 that trust between our departments and the Council to -- to not pad budget, to look at performance based, so that if that unanticipated expense comes in they just come to you and because you have built that trust and credibility, they have confidence that in that case of the unexpected they know they will get funding, instead of having to build a margin in there just in case, so -- Zaremba: I can appreciate all of that. Hopefully I will remember that next year when I ask the same question again. Rountree: I will ask it next year. Zaremba: Okay. Thank you. De Weerd: And we might be more creative with an answer again. Any other questions for Clint or Tracy? Bird: Very nice. Very practical. De Weerd: Thank you so much. Dolsby: With that we will introduce Dennis Keller and Kyle Radek to present their water enhancements. De Weerd: Okay. Thank you. You just took the guess out of it of who's up next. Now, we show water is scheduled for an hour. Can you do it in 35 minutes? Keller: We have practiced quite a bit and we have got it down to about an hour and a half, if that's okay. De Weerd: Go back and practice more. Maybe less words Bird: We know Kyle better than that. De Weerd: Yeah. We will let Kyle do the presentation. Keller: All right. All right. Well, good morning, Madam Mayor, Members of the Council. We would like to thank you today for your time and hearing the water budget proposal for 2014. 1 will be going over in a little bit more detail -- we have got a total of 18 enhancements for this year. This year's budget totals 5.3 million dollars and it does include one capital replacement, four division chairs. We have identified several chairs in poor condition and they are actually in alignment with our replacement schedule, so it there is any questions on replacements. The year of the chairs. De Weerd: I'd love to ask a question about this one, but I just can't think creatively right now. Meridian City Council - Budget July 10, 2013 Page 26 of 65 Keller: They are hand me downs to hand me downs, so it's about time. With that I will turn it over to Kyle for our first enhancement. Radek: Enhancement number one for 400,000 dollars is supervisor control and data acquisition system upgrade for the water. This is commensurate with the SCADA upgrades for the wastewater purchase and installation of SCADA system at base stations and remote terminals, including well storage facilities and pressure reducing valves. The fact is we have more remote stations in water, approximately 40 remote locations or 43 now we have put in with the new PRVs and the benefits are increased speed and viability in monitoring control, efficiency of water facilities. It will enable system organization for water quality, power consumption, and other parameters, and enhanced reporting capability for regulatory planning purposes. Enhancement number two for 120,000 dollars is a source water protection program. This was formally introduced to you over the last three years as source water master planning and we feel like a source water protection program is -- calling it a program is more accurate and it doesn't mean it didn't apply before, but we just thought the title maybe implied that there was going to be a -- a master plan, and, actually, you know, bound report -- here is the master -- here is the source water master plan and, in fact, there are several deliverable reports that we are currently working on and one we have gotten on source water protection program. We have done a considerable amount of work and you will see the cost is deceasing I think in previous -- previous budgets we have asked for more on the order of 300,000 dollars and up to 400,000 dollars in the past. But we have completed a significant amount of work and this enhancement addresses several activities that are necessary due to protection of current and future water rights and supply. This will protect our current water rights, plan for the acquisition of future water sources if we need them, it will protect the quality of our source water and we also coordinated with DEQ regarding system testing requirements with this kind of work, we measure and document water levels and observation of supply wells, which is a signature report that I hope to show you today, but I am not able to hold that one up today, I have -- I have some examples in my hand right now of some of the charts and graphs and you will see which is very -- very valuable, very powerful information that's going to serve us well in the future, but that is that enhancement. De Weerd: So, when do we get to see the displays in our hands? Radek: Madam -- oh. I will show you an example, Madam Mayor, since you asked, of the kind of crazy charts and graphs that we are going to see and some of the reports that we are going to have -- De Weerd: Do you want to pull the Elmo out? Radek: Pardon? Oh. Do want to do this in an hour? De Weerd: Well, I didn't know when you were going to do it. That's -- I -- you guys have gone off script on the schedule and so you talk about it, I just wondered. Jaycee I think knows how to run it. Now, she proved yesterday that she -- you know. Meridian City Council - Budget July 10, 2013 Page 27 of 65 Bird: I was just going to say wait a minute now. After yesterday -- so, now you're both playing with it, so -- there you go. Radek: We got light. Wow. Bird: You got light, Kyle. You're in the light. Rountree: There you go. Bird: Look at that. De Weerd: Whoa. I'm so glad I asked. Radek: This is a -- Zaremba: Is this an earthquake chart? Radek: It looks like it. De Weerd: Or a heart monitor. Zaremba: Yeah. Radek: This is one of the deliverables that you will see as part of the overall deliverable of well monitoring and aquifer testing report that -- a summary of the last 17 years of us monitoring the water levels at our supply wells around the city and this is a specific test that was done at Well 20, which is a use reservoir site, Well 20-A and 20-13, and what this chart shows, long story short, is that we have two wells that are within 30 feet of each other there that tap different levels of the aquifer and what this shows you is that when the deep well is pumping at 1,500 to 1,800 gallons per minute the shallow well doesn't mind at all, it doesn't even hardly see that it's pumping. So, that is a very very important concept of water supply in the Treasure Valley that the deep aquifer is substantially different than the shallow aquifer and another -- another piece of information that shows us the robust recharge of the deep aquifer is this, which is a -- what's the word I'm looking for? These are essentially -- these lines see they are contour lines of the water levels in the ground. Isobars. Thank you. But they are -- they are contour levels of not the actual water level, but piezometric head of the water level, because we know some of the water levels when you tap into Pierce Gulch Sands Aquifer is what we call it, the water level is actually above the ground in some locations. So, that's the water level we are talking about. But that shows you the difference from one side of our city to the other side of the city and we know the difference in potentiametric head we know that water flows from higher head to lower head, you know, it flows essentially downhill, so you know which way water is flowing across our city in this particular aquifer and if you know the difference in the head from once place to another and you know the translucivity of the aquifer, then, you can get an idea of Meridian City Council - Budget July 10, 2013 Page 26 of 65 how much water is flowing through the aquifer underneath our city and in just this slice, this Pierce Gulch Sands Aquifer, we can make some inferences with this data that we have on the order of ten billion gallons of water a year flowing underneath us in just this slice. Again, that's the deep aquifer that is not affecting the shallow aquifer that is very very blessly recharged. De Weerd: I go back to what Ed Squires said probably a decade ago. You look at our watershed as a bath tub and Meridian is really at the deepest end. So, you could have the rest of the area around us dry up and you would still have water in that basin. Radek: Madam Mayor, thank you for your comment and I -- the word bath tub is exactly what Ed Squires would have used, but what I have been saying is that there is a lot of people that think that Treasure Valley is like a bath tub in the fact that it doesn't have water flowing into or out of it, it's just a tub. But what this shows us is not only are we at a very productive part of the aquifer, but there is water flowing in and there is water flowing out. There is a lot of people that think that there is not recharge to that deep aquifer and that is significant and we have a lot of data that says, yes, there is recharge to that deep aquifer and, no, it is not -- I don't want -- I don't want to say too much here. But, yes, there is a tremendous resource that is -- that is available to us and -- and it's going to serve us well to have this information in the future. I guess I should say that and maybe leave it at that. One more graph, since I have got it here and you asked -- De Weerd: Well, you had it in your hand. Radek: Another complicated graph -- it shows us a lot of different things. But this -- this graph was -- was used during the attempted reconstruction and, then, the subsequent abandonment of Well 16 and through monitoring the -- the newly constructed monitoring well at that site we could tell that during reconstruction efforts and abandonment efforts that the well was, in fact, not properly sealed, it had just the opposite of what we saw what the first graph showed us, that the deep aquifer -- probably the deep aquifer doesn't affect the shallow aquifer that much, if at all. It shows just the opposite. It shows when we pump the deep aquifer we are seeing effects on the shallow aquifer, therefore, what we can tell is that we have an unsealed well. We punched a hole through those protective layers in between the shallow and deep aquifers and with the subsequent abandonment of that well we fixed that. We no longer see the communication between the shallow and the deep. So, the source water protection, the water rights issues, very valuable information. We also see from his further is that -- well, when we pumped up the Well 15 -- we evaluated Well 15 earlier this spring, we measured and saw the effects in -- in the right aquifer layers at Well 16 test well and that's, what, two miles away, mile and a half away. So, again, bottom line very valuable information that's going to serve us well in the future. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Meridian City Council - Budget July 10, 2013 Page 29 of 65 Zaremba: Just picking up on the name of this, source water protection program, will this also help us identify if there are contaminants coming in from upstream of us, so to speak -- and that's probably not the right word to use with an aquifer, but if there is a flow there is a stream I guess, but what are we doing to make sure that this is a usable water supply for the next several hundred years? Radek: Madam Mayor, Councilman Zaremba, it's all -- it's all -- another reason why we have changed that title to source water protection, it's all really about source water protection and the source water quality protection is now with this kind of information we are able to build groundwater models and say the water that is over there is going to be here in five years, in ten years, whatever, or, conversely, the water that is here that that diesel spill is on -- or diesel spill is probably a bad example, because it floats on top of water, but some kind of spill that wouldn't float on top of water, perchloresthaline, that spill is -- although it's right next to our well, when it gets down to the level of our well it's going to be in Nampa. So, yeah, that information is very valuable and this information feeds into the other -- the other projects we have going on in water supply, planning, we have a drilling concern that is getting very close, significant amount of work's been done and like you said that's another reason this is valuable information. Zaremba: Thank you. De Weerd: I heard a little of Ed in the comment. Radek: Madam Mayor, it's impossible to be associated with him for this long and not pick up a little bit here and there. De Weerd: Scary, uh? Radek: Shall we go back to the slide presentation or does anybody know how to get us back? No, it's still -- all right. De Weerd: And thank you for that, Kyle. Radek: Madam Mayor, thank you for asking me. De Weerd: We appreciate your passion. Keller: Okay. Enhancement number three is in the amount of 20,000 dollars. It's for the purchase of a new vehicle transmission unit or VXU as we call it. This is mobile electronic equipment that is currently used for our meter reading staff to remotely capture monthly meter reading rates and upload them into our utility billing software. This critical system is essential for timely capture of data and allows operators to read our 28,000 plus meters by vehicle. This insures our data accuracy and consistency that we need on a bimonthly basis. Meridian City Council - Budget July 10, 2013 Page 30 of 65 De Weerd: You know, Dennis, I know you have an hour and a half presentation to do in a half an hour, but you can slow down a little bit so Dean can actually catch what you say. Keller: I'm sorry. Radek: Enhancement number four is ground reservoir number two for 1.2 million dollars. This enhancement is to fund the completion in 2014 of a two million gallon reservoir and booster station near the intersection of Locust Grove Road and Victory Road. The main reason for the additional enhancement -- we had requested a significant enhancement last year for the construction. We are prepared to begin construction probably in about a month and a half. We are going to put that out to bid we hope next week. However, the project manager Clint Worthington would otherwise be presenting this enhancement is -- was sent home by the doctor, because he's got to put his foot up before surgery tomorrow, because he broke his ankle on Sunday and just to give you an idea, broke his ankle on Sunday, come into work Monday and got some invoices in and did some more work on getting ready to bid out reservoir number two and decided maybe he ought to go to the doctor and have it x-rayed. So, that's the kind of dedication we have got in Public Works. I said next time if you don't want to -- if you don't want to give the enhancement presentation just let me know, I will do it for you. You don't have to go through that. But the main reasons for the -- for the increase funding -- two main reasons. One is that -- and we initially had our design engineers telling us it was going to cost a little more than we had planned and we hoped that when we got to refined design that number would come down and it hasn't. We are at a hundred percent design now and they still say, you know, it's going to cost a little more. It's really an apples and oranges -- comparing that reservoir to the Ustick reservoir is -- it's a different -- different animal, different pumping capacity, has two sets of booster pumps and that's the other reason. We initially were going to equip the booster station with the manifolds and pump cans to serve pressure zone five when some day pressure zone five had development and, well, it turns out that now -- and maybe it's because this project has taken a little longer because of other reasons, but we now have people knocking at the door for development, pre -plats coming in for pressure zone five and we need it now, so -- so, that's another significant, you know, project change in the last months that's increasing costs. Keller: Okay. Enhancement number five for 70,000 dollars is for professional services to help assist with the remaining programming and development of phase one and the start of our phase two Hansen asset management plan in the water division. Tom kind of spoke of this earlier and it's a pretty -- pretty big project for us. With the unique water system features that Meridian has got and based on our end user needs and a couple of platforms that Hansen provides, professional programming assistance was required to insure that development of our asset management system was fully utilized, was user friendly and function really for us on a day -in and day -out basis. Phase one of our asset management plan is currently underway and it's scheduled to be completed by February of 2014. We started this earlier of this year. Pretty huge effort with quite a lot of committees and groups to get this aligned and in the direction for us and it consists, Meridian City Council - Budget July 10, 2013 Page 31 of 65 basically, of the incorporation of four main water assets, which we have got wells, PRVs, which is our pressure reducing valve stations, fire hydrants, and valves. Upon completion of this phase one, approximately 17,000 additional assets, which we have never have captured before, will be tracked, maintained, and monitored in this asset management program, so it's pretty substantial for our first phase. The remaining funds of this phase will be utilized throughout phase two start and assistance with that. Radek: Enhance number six for 600,000 dollars is a water line extension. This enhancement funds the design and construction of water line extension projects to expand and improve the distribution system and Clint Dolsby said --just like with sewer line extensions, often done in conjunction with ACHD projects, there are two ACHD projects that are included in this 600,000 dollars that the majority of the money is for -- as I said we had pressure zone five development come in a little earlier than we thought and we have to put in a water line extension on Locust Grove from the new booster station down south and that's what a significant amount of that is for and, then, there is two ACHD projects and, I'm sorry, but I can't remember the name of them, but we have got 200,000 dollars scheduled for those two projects. Enhancement number seven is Well 16 and this enhancement is to fund the design and construction of monitoring wells and public utilities at the existing Well 16 site. As I talked about before, we found Well 16 in our attempt to reconstruct it to be unreconstructable, it had reach the point where the well seal was not any good, so we abandoned it properly in order to protect the -- the natural protective layers or to reestablish the natural protective layers in the aquifer and we still have a site, we still have land, we still have power, we still have a building that we can leverage, so it's appropriate for us to -- to leverage that site and put -- put a new production well there. This is also a -- going to be the first well that we kind of have a different strategy for water quality. We typically sunk a well that lasts I'd say six or seven, eight years we are real particular about what levels of the aquifer we have been sinking wells and that's been working okay for us, but we always have to pick our poison -- are we going to get arsenic, nitrate, uranium, are we going to go deep and get iron and manganese. I don't mind iron and manganese. Dennis doesn't seem to like it too much. So, consequently, we have to -- we have to put in iron and manganese, you know, filters. This is a little bit different philosophy at this site, we are going to do multiple production wells, smaller, but multiple, and we will be able to blend the production wells together, so you get the best of both, you're not going to have to shut this site down ever for noncompliance with contaminant levels, you're going to have -- if you're approaching manganese and iron levels that are too high, you're going to dial up one of the aquifer layers. If you're feeling like your -- your nitrate levels are getting too high, you're going to -- you're going to go the other way. So, it's just a different philosophy and we are kind of excited about it and that will -- you know, these standards are pretty consistent for capacity, but also water quality on this one. Keller: Yeah. We are going to have to route some of the phone calls to you for iron and manganese. De Weerd: Just give me direct dial. Meridian City Council - Budget July 10, 2013 Page 32 of 65 Radek: I work for him. I don't care, but I work for him. Keller: All right. Enhancement number eight is in the amount of 25,000 dollars and it's the developed of a security capital improvement plan for the water system infrastructure. Historically we have seen this enhancement come up in the past. It's been basically handled on a case-by-case need. We have done some security improvements, like site fencing, enhanced our security locks, intrusion alarms, et cetera, of our SCADA system and although we have got some pretty good success with our security we kind of felt we needed to kind of step back and look at it, evaluate our facilities and develop a plan to help identify our vulnerabilities on more a broad systemwide basis and make sure that we are standardized and adequately protected at each of our sites. So, over the past year in preparation for developing this plan we have been working pretty closely with Homeland Security and just recently they came out and they have assessed our water system and they are working on an evaluation and recommendation for us right now that we can use to use help develop our security capital improvement plan. Hopefully we can -- we can bring out of this the analysis that they have given us to determine some of our priorities and the costs associated with improvements that are a suggestion that we find suitable or needed. Development and execution of this plan will also help strengthen our water infrastructure and reduce future vulnerabilities as we see fit. Radek: Enhancement number nine is for 210,000 dollars is Well 29. This enhancement is to fund the first year of a three year project for design and construction of Well 29, which unlike the Well 15 is a replacement of capacity, Well 29 will be investment in new capacity. The project includes a test well, production well, and pumping facilities. This first part of the project would just include design and construction of a test well and it provides more drinking water for the city, it improves system capacity, and hopefully water quality again. It's developed infrastructure to effectively provide uninterrupted water supply and fire suppression. Keller: Okay. Enhance number ten. This was one you have also seen in the past. This is in the amount of 50,000 dollars for the design and installation of chlorine analyzers within the distribution to help us mark and report back our disinfection levels that we are currently injecting into the system. These analyzers are necessary to monitor our chlorine levels in real time to allow our operators as to correct imbalance and system problems before they cause any water quality -related issues, such as brown water and contaminants referred to. This is year four of a six year plan. We have got quite a few of these analyzers installed at all of our well locations and PRV sites. We have actually branched out. We have got one here at City Hall and some of the lift stations. I have got the next one, too. All right. Well, enhancement number 11 is in the amount of 200,000 dollars and it's for the hire of a contractor to survey, and help us map the water system assets -- specifically water services for the inclusion in our Hansen asset management system. Currently there are 28,700 meters within our water system and we do not have them located within our GIS layer. Identifying the location of these services is going to greatly reduce -- or increase the ability to manage and operate these services, but it's also going to give us the ability to increase our Meridian City Council - Budget July 10, 2013 Page 33 of 65 knowledge of our system modeling in determining where our water users are and help us identify areas of conservation needs. It's also going to help us kind of set up for -- for future automated meter reading system, which you might have heard of. It's called an AMI, which would be a fixed based type reading system versus a drive by, so we could capture our reads on a more consistent basis instead of say monthly to even down to a half hour or 15 minutes. That would help us identify with our customers water usages, habits that they have, identify leaks before 30 days have gone by and they have got huge water bills. So, it's a very customer service driven system that we are hoping to prepare and plan for. Enhancement number 12. This is in the amount of 200,000 dollars and as Tom spoke of earlier, this is for our fiber optic portion between City Hall and water, so I'm not going to really go into too much detail about that. Enhancement number 13 in the amount of 300,000 dollars is for the purchase of water meters and related reading transmitters for our new water services. In 2013 the city grew by almost three percent, which is about 808 customers -- residential -commercial that we added to our system. Our current budget funding does cover the cost for maintaining -- we have a maintenance and repair program for our existing 28,000 plus accounts, but it does not include funds to cover the cost of the new infrastructure such as this. Although the cost of these new meters is funded and covered by new development, we just don't have that readily available in our budget for the new purchase of these meters. On approval this enhancement will allow us to access this additional funding and still enable us to continue with the existing replacement and the maintenance program of our existing meters. Hoaglun: Madam Mayor? De Weerd: Mr. Hoaglun. Hoaglun: Madam Mayor, Dennis, just real quick. And so, basically, this -- that number 13 is just -- we are funding this up front to purchase the meters, have them available, and, then, when the new development comes online that's refunded back, is that what you said? Keller: Well, Madam Mayor -- De Weerd: There is two things. There is replacement and there is new construction. Hoaglun: This is new construction I was speaking of. Keller: It would be new construction. We currently have funding in our budget for the replacement, because all of our meters are -- they are basically -- they have got a life span on them, so they have got batteries in them that have a life span that are not replaceable. So, we are trying to get ahead of that and replace a certain amount. We have got a 15 year replacement program right now going, but the funding for additional meters and end point is what we are asking for here. It is captured, it is -- it is brought in by new development, it's just now brought into our base budget that we can utilize that and continue with our existing replacement program. Meridian City Council - Budget July 10, 2013 Page 34 of 65 Hoaglun: Got it. Thank you Radek: Enhancement number 14 for 500,000 dollars is water main replacement. The enhancement is to fund the design and construction of projects to replace old, leaking, undersized water mains or water mains made of substandard materials. This insures water loss due to leakage is kept to a minimum and the threat of main breaks is reduced. It provides for uninterrupted water supply to customers and adequate fire flows and it enhances and protects water quality. Clint Worthington also is in charge of this program. We do have projects identified for this -- for the whole 500,000 dollars. I don't know the particular names of those projects. At this point in our water main replacement program we are still just going after low hanging fruit, the Old Town area that's -- where it's undersized. We don't really have places where we have got a lot of water main breaks yet, although it was mentioned earlier that we had a significant amount of water main breaks, percentagewise I would say yes, but our average water main breaks per year is probably about .2, so, yeah, we probably had a ten percent spike in water main breaks. We had two of them, so -- so, that's the status of our program now and eventually the program will morph into some based on asset management, which Hansen will feed, will approach the useful end of -- usable end of service life of pipes and we will state replacements in earnest probably in -- you know, it's going to be 40, 50 years before we get to our -- our big hump, but right now it's -- it's real simple, it's the ones we need to go after are undersized and I think this is the fifth year of our program and it's going pretty well so far. De Weerd: And, Kyle, you're also targeting those that have that -- more than one house on one -- one branch or -- I don't know your terminology, but I think in Old Town we have quite the mess. Radek: Madam Mayor, true. And I think -- I think you're really speaking more to our sewer services. We often find that on -- De Weerd: Oh, that's true. Sorry. Radek: -- our water main replacement. But we often find that on our water main replacement projects where we have to go through and we run into, oh, geez, whiz, there is another Y where two houses are going into the same service, so we have to deal with the same kind of problems. Our biggest problems on the water main replacement, especially Old Town, is where we -- we bring this brand new HTD pipe and a new meter box and a new set and we look at the existing customer side service line and go, oh, boy, you know, how are we supposed to attach to that without just breaking it, because they are in bad shape. So, those are the -- those are the big struggles on these kind of projects. De Weerd: Thank you. Meridian City Council - Budget July 10, 2013 Page 35 of 65 Radek: Well 19 is the next enhancement for 600,000 dollars. As I said, I -- I'm not particularly concerned with iron and manganese, but Dennis is my customer and so I want to make him happy, so this enhancement is to fund year one of a two year project for design, equipment procurement, and construction of a water filter facility for Well 19. This will be the second water filter project that we are going to go after. We intended to do it on Well 15, but we did an evaluation of Well 15 this summer -- or this spring, actually, I'm sorry, and found Well 15 to be in about the same shape as Well 16 was a couple years ago, so Well 15 is not the facility we want to invest another million dollars in in iron and manganese treatment. So, we are going to go to Well 19, which did -- has a clean bill of health from a couple of years ago and this enhancement will improve water quality supplied by Well 19 to the city's customers by removal of iron and manganese from the supply water and it will improve customer satisfaction, reduce customer complaints regarding brown water. Enhancement number 16 is Well 22 and Well 18 water treatment for 200,000. This enhancement is to fund the design and execution of a pilot testing program at Well 22 and 18 to determine the feasibility of source water treatment through aquifer conditioning. So, I believe I have mentioned this -- this strategy to you at some venue in the past. This is a form of aquifer recharge and we are taking oxidized water, introducing it into the reduced lower aquifer and what happens is you oxidize the water in situ, in place in the aquifer and that's where the iron and manganese settles out. It's, in fact, a -- it's an aquifer treatment is what it -- what it comes out. So, you put water in initially and you take it out, you might get a one-to-one ratio of water you put in and took out that was iron and manganese free and, then, eventually you condition that aquifer and it becomes a one -to -two ratio, one -to -three ratio. United Water has done it and it's been up to put to in one part, get seven parts back out that you -- that are iron and manganese -- relatively iron and manganese free. So, this is another strategy to address brown water and we have done the first phase of feasibility, we have found no fatal flaws. We are doing the geochemistry modeling right now and hope to do the pilot this fall with this enhancement and show that it can be done and move forward on our brown water correct plan. Keller: Enhancement number 17 is in the amount of 100,000 dollars. It's for the design and installation of HVAC systems at two of our well sites, at Well 20 and Well 14. Plus it also includes the installation of our Humark filter at Well 20. Chlorine, basically, is stored at these sites and it's what we use for disinfection and it's very sensitive to temperature and they were heightened this summer because it's hot in these buildings and it tends to rapidly lose it's strength and it causes us to use more chlorine than we need to to achieve the same dosages that we would if we had a higher strength normal chlorine concentration. Additionally, electrical equipment also degrades with the high heat and the dust incorporated within these facilities, so having these HVAC systems in there will reduce the temperature and also filter the air and keep it much much cleaner with inside our electrical controls and our VFD boxes. By doing this we hope to overall reduce our treatment at these facilities and increase the longevity of our electric controls. Just to briefly touch on the harmonic filters, this is something that's required by Idaho Power and what it does is keeps the bad harmonic nuances that our VSDs, our variable speed drives in our wells create off of their power grid and this is required of Idaho Power that we install these, so -- Meridian City Council - Budget July 10, 2013 Page 36 of 65 Radek: Enhancement number 18, our final enhancement in the water is land acquisition for a ground reservoir at number four site. This enhancement is to fund the identification and purchase of a property in southwest Meridian to be used for a future ground reservoir, booster, and well site. The 2011 water master plan predicted the need for additional water storage in southwest Meridian some day and obtaining the property preemptively will allow the city to place signage on the property to establish the future use of the site and so not unlike what we have been doing recently in northwest Meridian and we feel like the -- in southwest Meridian, the more rural area will be a better opportunity to get a little further out ahead, maybe get some better land prices and get a little more proactive. Keller: Okay. We open it up now for any questions or comments you may have. De Weerd: Thank you. My only question is about the chair. Sorry. Any questions from Council? Hoaglun: What I wanted to know, Madam Mayor, it's 12:00, noon, they did it, even with your questions for Kyle. De Weerd: Because Dennis talks so fast. Keller: And I apologize for that. I'm in therapy for it. De Weerd: So, no questions from Council? Bird: I have none. Rountree: No. Good job. De Weerd: Thank you so much. Bird: Very good. Radek: Next we have John -- De Weerd: Lunch. Radek: John McCormick wanted to take five minutes I think. Bird: Three and we will let him go. De Weerd: Promise? Really? Bird: I was going to say, mark this down. Meridian City Council - Budget July 10, 2013 Page 37 of 65 McCormick: Be the first time. De Weerd: Where is your -- Bird: You haven't been around Tom long enough. De Weerd: Yeah. Where is your displays? McCormick: I have no slides. De Weerd: No slides or props? McCormick: No props. De Weerd: No props McCormick: So, this is going to be real dry and dull for three minutes. Good afternoon, Madam Mayor, Members of the Council. I'm here this morning -- or this afternoon in this case -- I was planning to do this awhile ago -- to represent the street light budget enhancement of -- for 50,000 dollars. You have had this I believe in your material that was provided earlier. Funding is being requested for the continuation of the street light program, which began a couple of years ago as a collaborative effort between Public Works and the police department. The program's purpose is to construct new streetlighting needed to improve lighting for school walk routes that are most frequently traveled and are often poorly lighted. The new lighting will compliment both recent and forthcoming ACHD sidewalk projects for the school routes. The request for 2014 is a continuation of work that has been done pertaining to Linder Road south of Chateau. The FY -14 lighting project will construct lighting on the segment of Linder Road north from Chateau to Ustick. Approximately 13 streetlights will be constructed for the requested amount of 50,000 dollars to be funded by the General Fund. This concludes my comments and I stand for questions. De Weerd: Thank you, John. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I don't have a question, but I do have a comment and I love this. We just had it done on 8th Street and it's so much nicer to watch the kids in the dark walk to school with lights. I'm for any program -- and the area you're looking at out there right now is horrible and it's even worse than 8th Street was, because you got more traffic. De Weerd: And water. Bird: This is fantastic. Let's keep these programs going until we get everything lighted Meridian City Council - Budget July 10, 2013 Page 38 of 65 McCormick: Good. De Weerd: Any questions or comments? Thank you, John. McCormick: Okay. Thank you. De Weerd: Nice job. Lavey: Should have asked for more. Barry: Madam Mayor? Rountree: Out of your budget? Bird: No. No. No. De Weerd: We had a balanced budget there, chief. Yes, Tom Barry: Madam Mayor, I wanted let you know that that concludes the department's budget presentation and so after you convene from lunch you're free to discuss and deliberate on the entire Enterprise Fund and, of course, I think you are scheduled to do that for the General Fund. But we have nothing further to present. De Weerd: Thank you. And thank you to you and your staff, another stellar job on your presentations, your -- the work that went into your budget this year was phenomenal and we will look forward to Council's deliberations on the budget. So, Council, with that said, I will go ahead and recess this until 1:00 o'clock. (Recess: 12:05 p.m. to 1:00 p.m.) De Weerd: We will reconvene and at this point, Council, we have heard all of the budget presentations and you have the budget summary in front of you on your computer screen. So, maybe we can go through it from top to bottom. So, looking at the General Fund first, any questions regarding the summaries on the departments or capital improvements before we get into the enhancements? Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I guess I'm not seeing police. Should I -- oh, there we are. Is that ongoing? Has some money been added for the volunteer program? Is there a part for that somewhere? Meridian City Council - Budget July 10, 2013 Page 39 of 65 Lavoie: Madam Mayor, Councilman Rountree, the question that I think you posed was regarding yesterday's discussion about the volunteer -- Rountree: Some type of volunteer training. Bird: Yes. Rountree: Education. Lavoie: I don't believe we have had any discussion yet with exactly -- with Chief Lavey if we are going to add any additional monies per yesterday's discussion. We are adding dollars to the volunteer program that we discussed yesterday. Lavey: Mayor and Council, we didn't have any specific plans. We can look at that if we feel that we can or we can continue what we proposed this year and, then, make those adjustments next year. Rountree: As a budget amendment? Lavey: More -- I was thinking more in the FY -15 budget. We can also look at some of the grants we come in, maybe we can get some money towards that. And, then, we do have some small amount of the existing policeman money we could use, too. This program is getting so large, though, I was told that my figures were accurate, we are at about 170 volunteers now. So, that may force us to do something sooner. I may not have enough money to cover all those people. So, it's really to Council's direction. We can do it now. We can do it later. I will make it work if we do it later. If we do it now, then, it just makes it easier. Kilchenmann: Madam Mayor? De Weerd: Yes. Kilchenmann: Councilman Rountree, we can put some money in now. I don't know how much we would put in -- 2,000, 3,000 dollars. Lavey: I was thinking 25,000, 50,000. Kilchenmann: Two thousand, three thousand dollars. Rountree: You want to go big, uh? De Weerd: If you look at the cost of a T-shirt and for say -- you can continue to grow your program, even though you're, I think, reducing some of the volunteer opportunities, those volunteer opportunities, however, can quickly grow with the park patrol and that sort of thing. But at least, you know, for name tags, for -- for a T-shirt to identify them. Safety vests. There is a number of different costs. Meridian City Council - Budget July 10, 2013 Page 40 of 65 Lavey: Correct. Madam Mayor, Council, what we had -- Lieutenant Overton and myself had talked about afterwards yesterday was -- is starting off small, like we do with most of our programs, and maybe utilizing some of those funds toward our senior volunteers, those volunteers that have put time in and have been there, here is kind of an award or an incentive for being here. So, not try to get all 170 volunteers at one time, just maybe those that have been with us for awhile, let's move them into more of a permanent clothing option. Those ones that just show up and we buy them a shirt and, then, they say, well, this isn't for me and they leave, then, we don't want to try to deal with that. So, I would think more like -- more of a permanent name tag for all volunteers and, then, for those -- those volunteers that have been with us for awhile we can maybe move into some sort of clothing. One of the other things that we hadn't really considered much is that -- the different weather that's out there. Right now that -- with it being a hundred and some degrees the vests make them hotter. But the reason that we went with the vests is that it's really kind of the universal identifier right now, so in the wintertime they could actually wear a winter coat and wear a vest over top of that. So, we are really trying to figure out what -- what's the best option. So, I would suggest that with what Finance has said is, you know, a thousand or two and go small and see what we can do. De Weerd: In City Hall you can wear a coat year around, so -- Lavey: If they can wear a coat year around at 102 today, then, I will buy them a shirt. De Weerd: You know, chief, I do think that there is a lot of good argument behind those volunteer identifiers and maybe even beyond the name plate and I understand your concern, you buy them a T-shirt and they go away. But maybe even the vest idea for our volunteers who have been here at the City Hall that -- that make it a little bit more formal and to a certain degree identify that we do have a volunteer program and it kind of helps recruit when you see, oh, you're a volunteer, it might be an opportunity to, then, start a conversation. Lavey: Madam Mayor, I agree. It actually has a two fold purpose. One is that it lets them know that there are volunteers, so the expectations may -- the public may have different expectations, whereas they are not a police officer, so they actually may be a little bit more friendly toward them. But the other thing is -- is recognizing that, hey, I'm a citizen just like you and I'm putting in my time. So, it does have a -- quite a few incentives to doing that. So, it's just a matter of how much we put toward it and -- and make it happen. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: You know, I -- I think we have got to do something for our volunteers and you talk about one coming and working and not paying for a -- not putting enough in to get a Meridian City Council - Budget July 10, 2013 Page 41 of 65 T-shirt, but the T-shirts I have always been able to buy that was good -- if a volunteer comes for two hours at minimum wage has paid for that shirt. I think we need to identify them, let people know that these are volunteers, but they are representing the city, and also it's not just that, I'd like to see once in awhile, chief, that you would be able to -- to do something for them. If it was just buy a pizza or a cake or something, you know, just something in appreciation for the hard work that these people put in for us. De Weerd: Or a gift card. Bird: What did you say? Kilchenmann: It's okay, because they are not employees. Bird: We are not getting them a gift card. I don't want to get Stacy mad. But, anyway, just something like that and, I don't know, I think somewhere in this budget we could at least find to start with three or four or five thousand dollars to put it towards -- to give the chief to put towards his volunteers. I mean these people put in a lot of time out there and I know they are appreciated and everything, but, dad gum it, let's show it. De Weerd: Yeah, dad gum it. Lavey: Well, Madam Mayor, Council, we did have a thousand dollars in there at one of the previous years in the budget and it was cut just to -- during the economic times. So, if you feel that it's appropriate to put that in there now, I fully support that. So, it's one of those things that -- I agree, but they are not police volunteers, they are the city volunteers and I believe that the city appreciates them well and it's time for us to show it just a little bit more, so -- De Weerd: Chief, I guess I would -- if Council adds something in a volunteer budget, if we can work with HR and -- this is citywide, we do have volunteers -- Lavey: I agree. De Weerd: -- across the city, so -- oh. Steve. Siddoway: I just wanted to voice my support for the direction. I think it is very important that we recognize our volunteers. Barb has talked to me in the past with the volunteers out in the heat and wishing that she could find a way to buy them some of those cooling neckerchiefs or whatever they are called that, you know, they can cool them down as they are out in heat or I even thought of a water bottle, you know, to encourage them to stay hydrated, that might, you know, have a city logo on it or something. But just something that is -- would -- just to say thank you and be part of what they do, so -- De Weerd: And, see, if we had a vest this lady that's offering everyone candy would be recognized as one of our volunteers. Meridian City Council - Budget July 10, 2013 Page 42 of 65 Siddoway: So, I think it is important as well. Lavey: Ask for more money. Rountree: Ask for more money -- Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: And I think you have got the right idea. While we are using the Police Department to administer it, it shouldn't -- it shouldn't be out of their budget or anything like that, it should be citywide budget. De Weerd: Other Government or -- Rountree: Put it in Other Government. Bird: Yeah. Other Government. Is 5,000 fair, you guys, to start with? Rountree: I'm okay with that. Bird: I'm okay with it. Are you okay with it, chief? Lavey: Yes. Bird: Let's see if we can't find 5,000 somewhere De Weerd: Okay. Well, we will get into anything under capital replacements? Okay. If there is nothing there, we will start with the first -- first section, department, and move on to our enhancement list. So, the first one -- it doesn't even have any conversation, because the voters did pass to add two Council seats and you see what the cost is and that line item. The next one is Finance. Any discussion or questions in there? Bird: I think it's needed. It's long overdue. De Weerd: Okay. In HR and -- I had a question for Mr. Nary in terms of -- there is two half-time positions, one in HR and one in IT and Finance had put it because it's -- I don't know why they split it out, but it's a Finance thing. It is -- in talking about the FTE and what justifies it moving from a half time to a full time in each of those departments and, Mr. Nary, perhaps we didn't get that as part of your presentation. Can you make comment on that? Nary: Sure. Thank you, Madam Mayor, Members of the Council. There is a funded position -- there is a funded administrative position that's a legal department position that we funded when we moved into this building, so there would be a front counter Meridian City Council - Budget July 10, 2013 Page 43 of 65 support staff person for Legal -HR Department. It absorbed a lot of duties over time and, then, when the -- when the IT portion of the Legal -HR Department split off to another department, we were continuing to absorb those duties and so that's why there is a -- there is an administrative assistant position for IT, they have added actually more responsibilities to that position, but it's justifiable to continue to fund the administrative position in HR and Legal, because, again, it provides legal support, as well as admin support for the HR Department. We have also added other duties and responsibilities since we moved into this building, like the training program for HR and stuff. So, there is a necessity -- it's not listed in your budget, because the position's already been funded and the position exists for Legal and HR, but it doesn't for IT and there is a necessity now to really maintain the one -- I had actually -- we submitted an enhancement to, essentially, maintain the same funding for the position in HR and Legal, but also in support of the IT admin position for them, because, again, they have other duties and responsibilities that now justify the need for a full-time staff person. I think Jaycee talked about that staff person they have had on since last fall that's been providing support to IT, as well as to the clerk's office on occasion when they have -- then they have the need. So, there is really a need for those two positions. The one that's already been funded to continue to be funded and to continue to be part of the HR -Legal staff or administrative support, as well as the new position for IT, which is an additional person to the employee count and so that's why you're seeing that in your enhancement is because of the additional person. But the funding is necessary for both and they both need to be full time. So, any other questions on that? Hoaglun: Yeah. Madam Mayor and Bill, yeah, I was kind of confused, because I knew those positions -- that position was split and we were going full time with IT, but I thought we'd see -- the HR portion was going from half time to full time, but you said it's already full time? Nary: It's already full time. There was only one position. When we moved over here we actually eliminated some positions over time, but we actually didn't have a full-time admin support position when we moved here in 2008. So, the position's been funded since 2008. We have added duties and responsibilities, but the position is still funded as a full-time -- full-time FTE, so the duties have been split now between -- between the needs for IT, so they have additional duties and responsibilities that justify the need for a full time. So, this is really to maintain what's already existing and that's why you're seeing it as an enhancement. I submitted it as an enhancement, but it really is just a maintenance of the same funding that's existing. Hoaglun: Okay. Thank you. De Weerd: Just a little of the background. When we split IT out into Information Services, we told both our new Information Services director and the HR -Legal team that that position would now be 50-50. Fifty percent of the time needed to go to IT and 50 percent to HR -Legal, so -- and that this upcoming budget year they would have to come in and talk about why they needed a full-time position in that and it would have been clearer if we had that in our budget binders so you saw the justification, but I Meridian City Council - Budget July 10, 2013 Page 44 of 65 wanted to have the conversation on it. Now, Bill, I guess I would question -- and it's -- I don't know what direction City Council is going to going with the enhancement in HR, but if HR is -- as you recommended in your presentation -- split, what happens with this position then? Is it -- is it an HR -- because this is exactly the problem we had when we went with the Information Services, is that position, then, got all muddled. What was that -- what would happen with that position? Nary: My recommendation is if you're going to divide into two departments, that the greater administrative support need and the greater need to deal with the public that comes into the department, depending on where you have the department located -- but depending on that, the need is going to be in HR, because HR does deal with some walk-in traffic from the public, as well as employees. The Legal Department deals with almost no walk-in traffic from the public. We do have a support person -- although as the paralegal she doesn't deal normally with the front line counter types of walk-in things, but, again, we don't have very many on the legal side. We do have some needs for admin support. We can absorb that with the existing staff that we have in Legal for the current time. So, the likelihood is that position would probably go completely to the HR. If you co -locate them, which was part of our recommendation, then, it's not going to be an impact. I mean it will be the same person sitting in the same place. But if you were to move them to two different places, by recommendation you need to move that position with HR, because they would have nobody, otherwise, to, then, deal with any incoming personnel or anybody else. De Weerd: Okay. And just another point for Council is the position in HR -Legal also has a responsibility to the Meridian Arts Commission as well. So, just another justification for its full-time status. Nary: Right. De Weerd: Okay. Discussion on the enhancements in the HR then? Hoaglun: Well, Madam Mayor, for the new HR director, I think that we need a discussion on -- for me it's not an issue do we need to go to HR, it's to me a time that we have grown to a significant size and the new healthcare act is something that I think is going to be a tremendous burden for whoever occupies that position and Bill will probably be wiping his brow by this time next year going thank goodness it's not me. And those are some of the things that we see happening and just the growth of the city and it's -- it's just a matter of when we do it. Do we do it now or are we going to do it a year or two and I might as well do it now from where we are and I think for me it just boils down to how do we want to -- where do we want to place that employee. I'd like to see it a full time, separate department added to the city hierarchy and direct report to the Mayor, like all the other directors, but -- but location is for me the thing I haven't kind of sorted out yet and I wouldn't mind discussion about that. And if anyone else sees a need to have an HR director, but that's something I was interested in seeing happen. Zaremba: Madam Mayor? Meridian City Council - Budget July 10, 2013 Page 45 of 65 De Weerd: Mr. Zaremba. Zaremba: You know, I would like to say with sincere appreciation to Bill, who has over the last many years worn three, four, five hats at a time and managed them excellently -- De Weerd: And took the blame for all of them. Zaremba: Or took the blame, yeah. I agree that it is time to make a split and always when you're deciding when to add staff, when do you need a whole staff or do you need a half staff or -- or what. To me as we hear that the economy is picking back up and as we see applications and permits for construction going up, within the next three or four years the city is probably going to still be adding more employees to handle some of that workload and -- and picking on -- up on what Councilman Hoaglun said. Rather than do this halfway, I would say let's do it, let's hire a full-time HR director. Bill will be plenty busy. I see our legal needs picking up and he's also officially taking on the hat of being risk manager and I see that expanding, so it isn't that he will have nothing to do if we split these off. But rather than say let's take a halfway step this year and, then, have to take a couple more steps two years from now, it would be my inclination to say let's search for a full-time HR director and -- and for now pay the amount to move it into a different office as well. Do the construction. It would take some expense to split it, but leave them both in the same office, and, then, again, two years from now we would probably be back saying, okay, that's -- we have outgrown that idea. So, I'm -- I'm advocating if we are going to do it, let's do it the whole way. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I agree with -- I think we need to make the split and hire a director there and I think we need to have it in their own space away, because as Bill testified in Legal, a couple years he's -- we are looking at maybe even taking on more legal staff or doing a little different. So, I'm for making the move now and getting it in process and get it going. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I support that. I support getting it done. I support moving the office to make the office more accessible to employees without any hesitancy on their part of approaching City Hall and the only caveat I would make is that we relocate -- we relocate the new department in space that does not require the relocation of yet another department, so it minimizes the costs that we might incur. Meridian City Council - Budget July 10, 2013 Page 46 of 65 De Weerd: And I think -- I think Bill had already talked maybe with John McCormick. I don't know if anyone's talked to John, but he's kind of our go to guy on our City Hall facility. I continue to keep you ad hoc in facilities, John, until you fill your position. So, I would say when Bill took this to our senior management team and I know he's had -- he's been conflicted with both of the options that he presented to you and I appreciate that he's given a lot of thought to both of those options that he presented and trying to look at it cost effectively and if it was to create a separate department, if he could make that work in the space available, that even with you talking about the future prosecution and that sort of thing, it's an eventual move anyway. So, I -- I would agree with Council and certainly I know Bill has already looked at what some of the potential locations might be and with your direction we will move forward in that regard. Bird: I'm sure we can find a place for them. De Weerd: Okay. The next area is in IT. I think that Madam Clerk did talk about the administrative assistant one position and what -- how it constituted a full-time position as well. Any questions on any of the items under the IT section? Hoaglun: Madam Mayor? De Weerd: Yes. Hoaglun: We -- under IT and under several other departments we have the dark fiber issue and funding. So, since we are at IT I wanted to bring this out. I'm not sure if Council is going to go with it, but I think I support all aspects of the fiber, doing the loop, doing the full build out as quick as -- it makes sense if we are going to do it we might as well do it that way. But my question is -- for IT is we are going to have, you know, Fire Department, Public Works, IT involved in this, who is going to oversee this as a single entity as who is going to be responsible and I -- and I'm kind of looking at Dave back there going, you know, it makes sense for IT to oversee this. Of course, all -- everyone is going to be involved, but that one point of contact, everything comes through one place and you guys get the joy of herding cats. De Weerd: Well, that one point of contact has originated out of the IT Department and certainly has had contributions from many of the -- the users and interested parties, public safety, Public Works, certainly those are more of the -- the ones that have a real serious look at all of this. But I think there is comfort in IT continuing to take the lead and I'm sure they know they have eager participants to help and support in any way they can. Any additional comments? Madam Clerk. Holman: Thank you, Madam Mayor. I would support that. Dave has been the lead on all of the portion that is the IT enhancement section of the budget. I don't know -- I would assume he could also be useful as a point of contact with Public Works' portion, but I don't know if Mr. Barry would like to make any comment on that. De Weerd: Well, personally I think IT needs to be the lead in both aspects Meridian City Council - Budget July 10, 2013 Page 47 of 65 Barry: Thank you, Madam Mayor. These two proposals, the IT one and the Public Works one, as you know, go hand in had. They are two different projects in that we have a service provider that will be doing the installation. IT has certainly got to be involved in making sure that the criteria that is going to need to be met is established and pursued and that is the same in Public Works' pursuit of the alternate path as well. However, the Public Works proposal is not through a consultant as it relates to the service provider being proposed through IT, it's actually through what will probably be bid out as a regular utility project, so it would just be putting on conduit and fiber through a separate contract and, then, that particular service agreement and the connections and all that will have to be led by IT. So, we still feel that IT will be the lead as it relates to establishment of the criteria and the development of the procedures, processes, protocol and policies, but the only difference here is regarding which section might actually be run as a different project. So, Public Works will probably lead the actual installation through a private contractor in the section that goes from City Hall up to the water division, up to the wastewater treatment plant, and all the other installations will be led privately through the contracting service provider that's been identified through IT. Does that make sense? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: It don't -- it -- Tom, it don't -- it makes sense, but it don't sound practical. Barry: Okay Bird: Why are we not using the same protocol on both the IT's set up and also ours, because it's all -- they are all going to interchange. Can we do that, Tom? Barry: Yes, sir, we can, Mr. Bird. We can use the same protocol, the same terminal requirement, the same specifications for the fiber, the conduit, all of that, but the network that is included in the IT proposal is going to be owned and operated not by the city, but by the private vendor and the one that Public Works has proposed would be a city owned and operated system. The operation of that, i.e., the maintenance of that will likely fall under a service contract that may or may not be in alignment with the provider who is putting in the other network under the IT installation, it could be with a separate fiber vendor. For example, we have one now that we are using as a separate vendor. So, the confusion that I don't want to have is that even though it's all one network that will be connected up, it's not the same provider from the IT proposal and the Public Works proposal. Does that make sense? Bird: Yeah, it does now after you explain it. I did not understand that Barry: Okay. Meridian City Council - Budget July 10, 2013 Page 48 of 65 Bird: I didn't realize that -- that we were leasing the fiber in the IT deal: I knew we were purchasing it through yours and I thought -- and I must have had my ears plugged or something when David was explaining it there, because I did not understand we were just leasing it from -- from a supplier. De Weerd: You wouldn't like the price tag if it were different. Bird: Well, you know, you figure out over ten years on a lease payment and you're going to pay every year for it, sometimes the original, like he's doing, is cheaper. Holman: Madam Mayor? De Weerd: Yes. Holman: Could I invite Dave up to explain the cost difference -- Bird: Please. Holman: -- with the lease and all that? Okay. Hoaglun: And while he's coming up I want to prepare Finance, I need your input on this to see what -- what this is going to do on your end. How do we track this? So, maybe after Dave talks you guys can respond -- kind of get into that area of things, so -- thank you, Dave. Tiede: Madam Mayor, Members of the Council, when we went out and started doing our analysis of the various fiber options in this area, one of them was owning the fiber -- the city owning the fiber, putting it all in, putting the conduit in, handling the maintenance of that ourselves. In speaking with various providers there were other options as well and one that we had proposed is a dark fiber option that's an IRU lease similar to what they do with other Telco providers. So, the nature of this lease is a 20 year contract with an extension for 20 years. The cost difference between doing this and putting our own is about a fifth to a quarter of the cost. Because of the cost of boring to all these other locations and you can correct me if I'm wrong here, but the difference of the fiber that Public Works is putting in is a lot of the boring will already be taken care of with the split corridor project. A lot of the other pathways along the parks pathway will be trenching, so the cost will be a lot less versus going down roadways to the other locations we need to. So, that was the main reason why we went this direction and considering that we could have the fiber for up to 40 years, that seemed an acceptable risk. Bird: Okay. Madam Mayor? De Weerd: Yes. Bird: Then, David, what is our yearly cost for lease -- the leasing cost? Meridian City Council - Budget July 10, 2013 Page 49 of 65 Tiede: Fourteen thousand four hundred. Bird: A year? Tiede: That's the operating and maintenance. We pay an up front build cost and, then, we pay operating maintenance cost for every year. So, it's not like your traditional lease where you're paying a monthly reoccurring fee towards a lump sum, we pay the build cost up front. The rest is just operation and maintenance of that fiber, so they are accountable when something happens and we get service provided on it. Bird: And then -- but we pay for any materials or stuff used? Tiede: It's not -- in the contract that would be -- that would fall on the provider. Bird: That would all be on the provider. Tiede: Right. Now, obviously, as we -- if we plan to extend or, you know, bring another loop in or whatever, then, at that point there would be additional build cost. Bird: Well, yeah, I understand that. And, then, you would plan -- when we do loop to do this under the same setup, the leasing of the product? Is that what you're -- Tiede: That would be the plan. Bird: That's your plan, David? Tiede: Yes. That is the plan. Bird: Okay. And let me ask you a question then. What Public Works is putting in is part of -- is part of our loop that we own half the loop -- pay for it later; right? Tiede: It is. Because while we would be able to bring wastewater into the loop pretty easily, the water up front would be a problem, just because typically providers don't touch on residential zones very much and so that is really a glaring area that this fiber would address completely, so -- Bird: Thank you. De Weerd: Okay. Any other questions for Dave? Thank you. Hoaglun: Madam Mayor, if I could get Finance to weigh it. We have two different projects now. I mean even though we see it as one they are different. Kilchenmann: Madam Mayor, Councilman Hoaglun, they are both capital assets. The leased one is a capital lease, so we essentially capitalize it. It shows up as an asset for Meridian City Council - Budget July 10, 2013 Page 50 of 65 the full 1.4 million dollars and, then, we amortize it over the -- it's life, which is 20 years, and Enterprise Fund will pay half of that, but it won't go against the asset, it will just show up as revenue to the General Fund expense to them. The Enterprise Fund fiber will show -- also show up as an asset in the Enterprise, so one is an asset in the General Fund and one is an asset is the Enterprise Fund. Hoaglun: Okay. And, Stacy, to follow up, then, basically for you guys -- for these two different projects, though, they are going to be -- they are going to be separate. I mean you're going to have to deal with different -- Kilchenmann: Correct. Hoaglun: -- different deals, so -- okay. There is no way we can marry those and have them on single -- single flow it sounds like now that I have heard the explanation. Kilchenmann: No. We have about two million projects, so it will be okay. Hoaglun: Okay. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I can suggest one easy marriage here and that's on the topic of fiber optic extension in both of the budgets that have been presented that we concur that we move forward with the General Fund and the Enterprise Fund pieces and dispense with further discussion. Bird: Yeah. Zaremba: That works for me. De Weerd: Okay. Certainly -- anything else in the admin section of the enhancement? I'm looking at the three-quarter time employees in both the Mayor and Parks Department as presented by HR, the Other Government, and the VRT fixed route. Zaremba: Madam Mayor? De Weerd: Yes. Zaremba: In the Other Government section -- not either one of these, but it's kind of a side discussion -- is purple -- okay. So, on the purple page in the other government section what I'm referring to is the discussion we have had about senior transportation and I want to clarify that's the 30,000 dollars that is set aside for senior transportation under Other Government. Intend to pay that amount this year or in fiscal year'14, pay that amount to VRT, as opposed to paying it to the senior center; is that correct? Meridian City Council - Budget July 10, 2013 Page 51 of 65 Hoaglun: Madam Mayor, I can answer that. With -- Treasure Valley Transit is going to be providing services to the Meridian Senior Center and we have had a meeting with Terry of TVT and it sounds like the way they are going to set it up is we would still transfer funding to the seniors to help cover their costs of that program, so it wouldn't go to TVT, but it would still go to the senior center and that was according to Terry at TVT and how they do their billing and different things like that, so that can be something that we can have Finance inquire further about, but in the meeting I attended she said that was a question asked of the senior board was, you know, do -- does the city money go directly to us or does it go to TVT and she said it goes to the senior center to, then, cover costs. Zaremba: And -- okay. So, there is a third -- if I may follow up, there is a third element in here, which is Valley Regional Transit, which is the official recipient of the federal funds that this has to be matched with and -- and even if Treasure Valley Transit and the senior center were to agree, I'm still thinking we need to -- we need to put the money in Valley Regional Transit, because that's the only way that it qualifies for the federal match, which they would, then, give to the senior center or Treasure Valley Transit. So, I think we do need to explore that a little bit more. It may be a requirement of the federal match that it go to Valley Regional Transit. De Weerd: I think we can just mark it for senior transportation and workout the details at the -- Hoaglun: I think you're right, Madam Mayor. Zaremba: The purple page doesn't specify who the check's written to, but I just want -- want to make sure we are all understanding what it is we are planning to do with that money. Hoaglun: Because I do -- I had heard that in the past, Councilman Zaremba, that, yeah, VRT to qualify for that other federal money you have to have those matches. So, we will try and get that straightened out on where that has to go to when that happens. Zaremba: Okay. Thank you. De Weerd: I guess I would note as we are under Other Government under the partnership -- agency partnerships that we have with the ACCEM -- the Ada County -- whatever it all stands for. Emergency Management something. I would like to pursue that we pay that on a month -by -month basis if they charge us. Right now there is -- there is some interesting dynamics. We are -- we have been a serious partner in the ACCEM and we hope to continue to, but there has been some questions and we just want to make sure those are all addressed to the satisfaction of the city before we continue to participate. So, if we could do that on a monthly basis starting in FY -2014 that would be good. Meridian City Council - Budget July 10, 2013 Page 52 of 65 Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I like your idea, but if I don't -- I think this problem better be solved by October 2014, so we know whether we are given or not -- I hope you guys -- I hope we can get it solved by then. De Weerd: Well, if the elected officials don't change I still prefer to be on a month-to- month basis. Bird: Well, yeah, if they don't change, but it doesn't get changed. It's coming into their year budget, too, and it's got to be rectified one way or the other. De Weerd: You know, that's the relationship we have with Allembaugh House and we pay quarterly to other agencies, so we will figure that out, but if we can work with Finance on that -- or I will work with Finance on that. Anything else under Other Government to discuss? Bird: Madam Mayor? De Weerd: Yes. Bird: Are you including the 60,000 to VRT under Other Government? De Weerd: Yes. Bird: I -- I have no problem giving them the 60,000. In one year I want to know what the ridership is on it. I don't want to spend 60,000 to have something coming down here that one or two people are riding like we see their buses all the time come through here with nobody on it or one or two people. If we are going to invest 60,000 dollars let's make sure that our citizens get to use it or can use it or however we do it I'd like to know in one -- in one year before I would fund it again that it is being used the best way possible. Zaremba: Madam Mayor? De Weerd: Well -- and I guess, Mr. Zaremba, I appreciate that ACHD is interested in making sure this is a more robust route than just a commuter, because that commuter one concerned me. I would, as a city, like to explore as we look at public transportation and you had mentioned in your presentation the success that Ada County Highway District is having with their Commuteride and it is a less expensive program than a bus system and maybe having the city talk with them about our -- our transportation needs in terms of the public transportation component and see where they are headed and if there is an avenue using Commuteride system in maybe a different -- in a different approach. Meridian City Council - Budget July 10, 2013 Page 53 of 65 Zaremba: That sounds like a possibility as well. De Weerd: And I certainly defer to you and Charlie as members of VRT, but -- Zaremba: Yeah. As a further discussion on what Councilman Bird said, VRT is very well practiced at providing that kind of data. In fact, they have -- they use it to make their route adjustments and the improvements that have come in their service over the years has not been because of more money, it's because they have allocated the assets better and better to -- to carry more and more people, sometimes eliminating routes that weren't carrying anybody and adding routes where -- or adding buses to routes that were busy. I would add one other thing that I think on the written enhancement it says this. We are not going to have service on day one. There will be some lag while they go through a public process to adjust routes and -- but I would expect this to be in service for maybe six months out of the year. Boise will also have to understand that we are finally stepping up to their offer from a few years ago and so there will be some adjustments. So, this won't start on October 1st, but -- or at least wheels won't be on the ground then, but, yes, VRT is very good at being able to explain how effective they are being and even make suggestions of what might be more effective, so -- and, yes, I will talk to ACHD as well. And one of the other things -- I don't know ACHD's process for asking for the match. I suspect we maybe their first guinea pig on this as well, so I will figure out how -- how we approach ACHD on the match for this as well. I don't see Caleb here. He's the one I would probably ask, but I -- oh, there he is. I thought I saw him a little while ago. I don't know if he has any suggestion on this. As far as I know this is a new idea from ACHD that I have now heard from two of their commissioners, but I will see what else I can find out about how we apply for the match. De Weerd: Well, I guess with that said, I would hesitate investing without it being -- if it were just a Commuteride I think we'd have a hard time getting people using it like we would like to see in numbers. So, I -- I support it with the contingency that we do have the participation from ACHD and so -- I don't have a vote, but that's just my opinion, so-- Zaremba: Well, certainly if all the ducks don't line up we aren't going to spend this money, so I'm comfortable with that. De Weerd: Anything else in the administrative request? Otherwise, I will move to Fire. Okay. Fire Department. Bird: That's where we get the red pencil out, isn't it? Hoaglun: Yeah. It's already in red. Bird: It's already in red. Meridian City Council - Budget July 10, 2013 Page 54 of 65 Hoaglun: That means we can't change it. De Weerd: I'm not going to comment. Any questions regarding this? Bird: No. I do have one question for Mark. On the cardiac monitors, Mark, where are we going to have them at? Niemeyer: Councilman Bird, the two spare cardiac monitors will be housed on the reserve engines, but, then, if we do have one break we will pull it off of that reserve engine and put it in front line service. Bird: That's what I thought. They will be on a reserve engine, they won't be just sitting there. Niemeyer: Correct. Yes. Bird: Okay. In case something -- we had to -- had to grab a backup and go -- Niemeyer: Exactly. Bird: -- it would be -- it would be there. Niemeyer: Yes. Bird: Thank you. Niemeyer: It will also make it easier, just to add to that, if we do have an engine breakdown, typically they have to grab a bunch of equipment and move it back and forth and this way they can just go into an engine and get back on the road without delay. De Weerd: Okay. If there is nothing further in Fire, we will move to Parks. Hoaglun: Just a comment, Madam Mayor and for Steve. That geese control, I'm in favor of trying that, but it's something we will probably need to take a look at next year and see what -- see how it went. It's going to be tough if other partners aren't -- as mentioned earlier -- I don't know if it was Councilman Zaremba or Rountree during the presentation, but, yeah, to have a -- it makes a lot of sense to get everybody on the same page and try to do the same thing and make it happen, so good luck with that. De Weerd: Yeah. And I think that there continues to be a question regarding the recreational field house. It's in there for the 750,000. We would like to see the other 750,000 added back into what we have been saying in terms of when we talked about this earlier that if there was a fund balance that some of that can be loaded back into this aspect in the CIP, so -- Bird: I don't have no problem with it. Meridian City Council - Budget July 10, 2013 Page 55 of 65 De Weerd: Okay. Rountree: Glad we are doing it. Yeah. De Weerd: Well, I -- we just wanted to make sure and needed to bring it up during the budget discussion, so as we looked at those -- any savings that it's dedicated like we did the one year in the public safety fund. Rountree: Right. De Weerd: Okay. Anything in the Police Department? Certainly I think there are the -- the question in front of you is with the animal control. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I just have one question. Chief, on that animal control, will we still get the revenue of dog licenses and will we still be issuing the dog license? Lavey: Madam Mayor, Councilmen, and Councilman Bird, the answer is, yes, we will still be issuing dog licenses at the police department. We will still be issuing dog licenses at our local vendors within the city and with this contract additionally they would also issue dog licenses at the shelter and require anybody that picks up a dog that wasn't licensed to purchase their license there and that would be just one more area that they can get a license. We would be receiving all that revenue still and come back into the city and the other main difference is -- I saw a comment yesterday online -- is that although Idaho Humane Society charges Meridian city residents drop-off fees for dogs or cats currently, if we have a standing contract with IHS, then, the drop-off fees are waived. Bird: Madam Mayor, follow up. But we will -- we will not get any revenue from the adoption fees; right? Lavey: Correct. Bird: That will stay with them. Lavey: Correct. Bird: Okay. Thank you. De Weerd: I guess one of the things that came up, chief, when we had this topic on the agenda last month was the question about our current employees and if we contracted with the Idaho Humane Society we have been talking about them -- with them on our Meridian City Council - Budget July 10, 2013 Page 56 of 65 vehicles and our employees. Can you refresh my memory on what that conversation was? Lavey: Madam Mayor, Council, yes, I can do that. A couple different points in the discussion. One was the vehicles that they will pay us fair market value and take into account within the contract. One of the things IHS asked for is that -- since we are talking about two separate vehicles, if we could get fair market value and they would deduct that price off of one vehicle, one contract year, and, then, the price of the other vehicle the next contract year. These are going to be negotiable terms that we will have to come in front of Council to see if there is agreement upon them, but that's kind of where we are leaning. As far as our employees from day one they recognize that our employees are the -- are the greatest asset to making this thing work. They would not have to retrain anyone -- or not extensively and that's institutional knowledge that you would like to have. So, they would work on taking our employees. I do not want to speak for the employees, because they need to make a tough decision, but when we originally proposed this to them they were both interested in -- in going over there. Since, then, I have heard that one of them is thinking about retiring. The recent attack by the pit bull probably had some -- something to do with that, too, so that opportunity is going to be there for her, but she needs to make that final decision. I talked to Lieutenant Overton this morning and I told him that we needed to get the fair market value appraisals for those vehicles and that we needed to reapproach our employees to see what they were going to do, so we could kind of change that with IHS, if Council moves forward on this proposal. De Weerd: Thank you, chief. I do want to make sure that our employees know that we are looking out for them as we negotiate this contract and that they are top of mind. Lavey: Madam Mayor, Council, I believe they know that. I know that you and I talked about one of those specific employees. I can share with you that she would rather stay within the PERS] system and stay as a City of Meridian employee. She's found of us and so that says a lot for you folks up there. She's been working with HR with other jobs that come available within the city and applying for them. So, it's really kind of a -- maybe a win-win for her, maybe we can get her a job and she can stay with the city or if that doesn't work out then we can at least get her a job in the area that she's currently working in. De Weerd: Thank you, chief. Any -- anything further on this line item? Rountree: Fully support it. I think it's the way to go. We get way better service. It's a much better value I think for our taxpayers. De Weerd: Well -- and I will say that I think as was discussed, this is a contract with IHS and certainly if there are in other years other opportunities for -- for contract agreements to care for the pets of our community those will be seriously considered. Meridian City Council - Budget July 10, 2013 Page 57 of 65 Lavey: Madam Mayor and Council, I would just like to point out this will be a year -by - year contract, but like in other contracts that are written and our legal team will take care of that, there is usually a 60 day opt out period. So, as long as you opt out in writing within a certain set period of time, 60 days, 90 days, you're not held to that one year time. So, yes, it pretty much opens us up to do just about anything that we decide to do, what's based upon the best interest for the city in the future. De Weerd: Okay. Thank you, chief. And, again, our thanks to Lieutenant Overton and to Connie Peterson and the group that's been working on this and as this starts to -- as we enter into the contract with IHS that as you and I have talked -- this is for Council's benefit -- that we will be talking about how to best recognize all of those volunteers that have given time and passion and a lot of ownership into the program that we currently have. Lavey: Madam Mayor, Council, I do know that Connie was going to try to schedule a meeting with you to discuss some ideas that she has in regards to recognizing the volunteers on a more long-term basis and, then, I also talked to you about how to recognize them on a short-term basis as well, because they have helped us out tremendously over the years. This has been a real tough decision for everybody involved really looking at what's in the best interest of our community, what's in the best interest of our animals. It's just a tough -- I know that the city of Pocatello has -- is building a 2.8 million dollar shelter right now, they are going through some of the same battles that we are and they don't have the opportunities that we have in IHS that's available here. This will be a one stop shop where all of our animals that are -- that are found wandering in -- in the Treasure Valley -- or at least Ada county will go into one place and so I think that will help. But Dr. Rosenthal -- Rosenthal at IHS also needs to be mentioned in there about working -- working well with us trying to find out what's best for our citizens without stepping on too many toes. One of the things that we found out is that there is a lot of deep emotions involved in this and sometimes those emotions get in the way of some of those decisions and I can appreciate what they are going through, but I, too, believe that this is in the best interest for our citizens and, then, with the -- the new shelter facility within two miles of the city will also help, too, with their new location on Overland and Maple Grove will be a benefit to us. De Weerd: Thanks, chief. Council, any other items under the Police Department's budget enhancements? Okay. Anything needed to be discussed in the General Fund? Rountree: I don't think so. De Weerd: I guess, Council, there is a project going on with our historical preservation commission regarding a first phase of a historical walking tour and because they have not gotten to the point of costing out signage and that sort of thing, if we don't want to do something because it would just be pulling a number out of the air that there would be a budget amendment expected for next budget year as they get firmer numbers on signage and the QR codes the direction that they are going and a master plan. So, I don't know if you prefer to put a place holder in there at this point right now in the Meridian City Council - Budget July 10, 2013 Page 58 of 65 amount of 10,000 or if you would like to wait until they have a firm number and amend the budget, I would ask for your direction in that regard. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I'd have no problem taking -- we got a little fund balance and taking 10,000 and putting in Other Government designated for that, if you think that would be -- Rountree: My preference would be wait until we know and do a budget amendment, but -- either way it's -- if we put it in the budget now at least we -- we know we are going to fund. De Weerd: And I think that's kind of what it does tell our HPC that it's a Council priority as well and it is something you'd like to see. Hoaglun: I'm good with that, Mayor. De Weerd: Okay. Zaremba: Madam Mayor, if -- if that's a reasonable estimate and a good ballpark figure, I think it's fair to show that we have -- we have had some discussion on the subject and we are on board with it going forward. I'm glad they are doing that and look forward to it. De Weerd: Yeah. They are very excited about it as well Rountree: And I think we have a Dilbert cartoon in here that speaks specifically to this process about numbers. De Weerd: Okay. If there is -- is there anything further in General Fund? Okay. You have your community development budget request that's also the next item up. Any questions regarding the enhancement in this section? If not we can move to -- oh, I'm sorry. Rountree: No. Move on. De Weerd: Oh. Okay. Enterprise Fund. We don't need to talk about the fiber. Bird: No. Did we want to talk about the chair in the water department? Zaremba: Let's sit on that for awhile. De Weerd: That's good, David. Any questions in this area? Meridian City Council - Budget July 10, 2013 Page 59 of 65 Hoaglun: Not on Council, no. Rountree: I guess I do have a question for Tracy on the -- on the shelf life of that fiber or filter. Is there a shelf life on the 80,000 dollar investment or is that going to be installed immediately? Crane: Madam Mayor and Councilman Rountree, they are bonded filters, so I imagine there is some indefinite shelf life, but they will guarantee it for another five years. It's kind of hard to say, because it depends on how much the filter back washes and how much solids we load onto the filter and how long it will last. I would say that we would probably keep it in this and, then, pick some of -- the worst filter and change it anyway after a couple of years just to make sure that we didn't run that further and, then, just take all those panels and probably put them on a shelf, so that you would replace one by one and have the newest ones on site. Rountree: Okay. All right. Bird: Thank you. De Weerd: Okay. Well, I think that Finance will take these numbers, clean them up, and bring them back to Council at your next Council meeting; is that correct? Is it one meeting out or two? I don't have our time frame in front of us. We do need to publish it and so we want to make sure we have the numbers all scrubbed and ready for your motion to go ahead and publish. Lavoie: Yes, ma'am, you are correct. The next meeting that we have will be on July 23rd and that will be to adopt this budget that you're working now, so I will put the 10,000 dollars in there, make a few changes, and, then, I will also be presenting to you the current fiscal year'13 amended budgets. So, that will be on July 23rd when I present that number and, then, after that we will have it looks like two more meetings after that, the public hearing and, then, the official ordinance notice meeting as well. So, July 23rd will be the next time you see the final final number. De Weerd: Okay. Very good. Well -- Mr. Zaremba. Zaremba: Just for clarification, the two amounts that I think we have added is 5,000 dollars to go into a volunteer fund and did we decide that was going to be managed by HR? De Weerd: I thought it was 5,000. Zaremba: Or 5,000. What did I just say? I meant to say 5,000. Five thousand. And the 10,000 to go to -- 10,000 earmarked for historical. So, I guess my question is are we struggling with 15,000 dollars or do we need to cut 15,000 dollars someplace? Meridian City Council - Budget July 10, 2013 Page 60 of 65 Lavoie: Madam Mayor, Councilman Zaremba, the General Fund budget currently can handle the additional 15,000 that you added. Right now the General Fund -- without the 10,000 sits at a positive 363,000 dollars, take 10,000 General Fund is sitting at a positive 353. Zaremba: I like the positive. That's great. Lavoie: We do as well. Hoaglun: Madam Mayor, a question for Finance on the 5,000 allocated for the police volunteer -- or community volunteers administered by the Police Department, should that 5,000 go into Other Government or does that cause them headaches or you headaches on who oversees that -- those expenditures for our volunteers? Lavoie: Madam Mayor, Councilman Hoaglun, I think there were discussions that it would -- the volunteer expense would go to the multiple different volunteers that we have for the city, so I think there was discussion to put it in Other Government, therefore, it would represent the volunteers of Parks, at the Police Department, so the budget will fit in Other Government. Who would actually manage the details of it I think we could still work on the discussions of that, since multiple hands might be working with multiple volunteers. Kilchenmann: Madam Mayor, Council -- or do we want that to be in HR? Because we did have a discussion in directors meeting about -- we discussed this a bit. We discussed the coffee cups and so forth. De Weerd: We have riveting discussions there I will tell you. Nary: Madam Mayor, Members of the Council, I think what Stacy is alluded to is we had a discussion -- we have a fund that we currently use for recognition for the volunteers in relation to our commissions and committees and those kinds of things. So, we administer that fund as well. If that's the desire of the Council that we use this. Basically all we do is we get the -- the departments will tell us what their needs are, we just manage the expenditure, we manage the billing, we manage that piece of it, but I don't -- I'm not going to decide -- if the Parks Department says I need three recognitions of these types and you have three of them we are going to send them three of them and we will bill it back to that account, I mean that's all we are doing. But it's just a conduit to get it done. So, it's not really problematic for HR to do that. We can -- we can certainly manage it like we do the other recognition things that we do currently. De Weerd: I just think there needs to be a close correlation with the Police Department, as they have the bulk of the volunteers and that Barb -- Barb Hatch is probably -- and Lieutenant Overton has as much ownership in this and participation because of the size of their volunteer programs, but, chief, I don't know if you have a -- Meridian City Council - Budget July 10, 2013 Page 61 of 65 Lavey: Madam Mayor and Council, I do have a couple comments -- I know that's strange, but I had some concerns about what I was hearing, because there is a lot of fingers getting into those pots and the internal controls as far as is that authorized or unauthorized and, then, part of the discussion I heard, too, was, you know, it's kind of a two -fold purpose, one is recognition, as in recognition of service and the other one is, you know, a recognition of supply a piece of equipment to do the job. So, although I think that it's appropriate for HR to do a recognition, it may not be appropriate in a piece of equipment. We can probably make it work regardless of where the money lies, but I do believe that we need to have some sort of internal control on that where we know that we are not buying a bunch of cups and they just sit on the shelf somewhere when we actually need something else or -- De Weerd: So, we need the vests or ID tags. Lavey: Correct. De Weerd: What I would like to do, Council, in this 5,000 dollars in the scheme of things, but we need to bring that -- maybe some ideas back to you when we firm up these numbers on the 23rd and give people instead just off the top of their head type of feedback or comments, that we bring it back to you when we talk about these numbers. Does that sound fair? Bird: I would agree. Rountree: I agree. Hoaglun: We have agreed on the amount, it's just a matter of where we put it. De Weerd: Right. Hoaglun: Or do we split it. That's an option. De Weerd: Okay. I guess -- I don't know if Stacy has a summary or her team. I would say that I feel very comfortable that this year -- we have been working towards a true performance based budget and I think this year we are as close as we can get to that true intent behind a performance based budget and I will give kudos to our Council. The trust that you have built with our departments to take care of them when they have an emergency has been huge. The tendencies in the past has been that I have to have this in my budget, this has happened in the past and we don't want that kind of budgeting performance and where you have showed them that you have their back in case of the unexpected has been huge and to our directors the detail that you brought where you have showed them that you have their back under every line item in discussing the over and under variances of each of those line items and the justification and the detail and thought that you have put behind every expense that you -- that consists of what that -- an amount in that line constitutes it greatly appreciated. You are truly following that you will ask only for what is needed and you will perform to that line Meridian City Council - Budget July 10, 2013 Page 62 of 65 item. That is very rewarding and I will tell you that as I was listening to each of you give an overview of your departments and -- and how you have employed the dollars that you have been given and that you're working the plan and I know we kind of chuckle and we talk about working the plan, but you're working our plans and you're spending every dollar strategically and towards the purpose of serving our public to the greatest service levels we can accomplish. So, kudos to each of you and, of course, to our Finance staff. We greatly appreciate you. You have been fiscal hawks. You continue to be the reason that we can operate in the black, we can pay cash for our capital needs and that we can maintain a level of confidence with our citizens that they see that we do have a true intent of being conservative and tight with our dollars, but also very focused on the level of service that we provide to them. Yes, Mr. Bird. Bird: I'd like to -- Charlie and I have sat through -- I think this is our 16th budget deal and -- Rountree: Not quite Bird: -- every year, because of Tammy's leadership, all you guys, the nice thing about all the Meridian budgets is we don't have to look for fluff. We know everything that has been brought to us is needed or you wouldn't bring it and the nicest thing about it is you're very conservative on your revenue estimate, so that we do have fund balances every year for emergencies and that we have been able to save over the years to do this stuff without having to have bonds or anything like that. I appreciate it. Every year I have thought we got better and the next year we get better. I just appreciate all the work that you people do and all your employees do and, Tammy, I appreciate your leadership in doing this. De Weerd: Thank you. Hoaglun: Madam Mayor, just a quick comment. It's interesting when you go through this process, because there is a lot here, but how much I am not surprised by -- not just to the departments that I'm liaison to, because you're fully informed and you're working with them on their budgets, but how good the directors and others are about making sure that we are informed about things that might be coming up or issues that you see down the road that you discuss during your strategic plan or other times during the year, so that when we get to this time it's not a surprise. You go, oh, what do you need that for, well, I didn't know about that. That when I look at these things I have an idea -- and maybe not the full details, but I knew, oh, yeah, they talked about that, that this was going to be an issue. They have got to replace this or this -- they might find this and we might have to do this. So, that's very helpful to at least have some sort of a knowledge base going into this process, especially when I compare it to the first year when I was on Council and had no knowledge base and it makes a difference. But I appreciate you folks doing that during the course of the year and other times you call me up and say, hey, can we sit and talk about this and need to brief you on this, because this is going to be a critical issue, so I do appreciate that information flow, it is very helpful. Meridian City Council - Budget July 10, 2013 Page 63 of 65 De Weerd: Mr. Zaremba. Zaremba: Madam Mayor, I would also like to appreciate the Mayor and all of the department heads and your major staff. Over the last several years I have been impressed by the process that you all go through to -- to put your budgets together and particularly the enhancements and this year I had the unusual opportunity to spend a few minutes in the directors meeting as I introduced the enhancement that I proposed and, again, I was impressed. If you all treat each other with the same respect and the same depth of questions that you have provided for me I can see why the product is so good that is brought to us and it has built up in me a trust of all of you, which I probably was disposed to have in the first place, but it keeps being reinforced every time that we have a budget process like this and I really appreciate every one of the directors and the Mayor for the process that you go through and, like I say, having had an insight to a little piece of it I'm even more impressed, so thank you all. Rountree: Madam Mayor, I'm coming down the stairs and I can't remember -- one of you was by my side and we talked about the budget and the budget book and said, well, it takes me back to a vague memory to 1996 with the first budget that I had the privilege of being part of, but really not a part of. It was presented to us and said here it is and it was a spreadsheet. Now we have the opportunity to work with the Mayor, each of our departments sit through their budget sessions, understand way up front what's going on with the department you're being liaison with, along with a separate financial department, as opposed to a secretary or a treasurer and it's fun to think back that we really thought we knew what we were doing and how poorly we did it and what's been said I can't -- I'm not going to say it again, I just echo it, that I really appreciate that the advancements the city has made in every area, but particularly in the fiscal area, we are light years away from where we were and I agree with what Councilman Bird said, every year it gets better. It's smoother, your staff's more comfortable, I think they are more comfortable because they do understand that we understand and we worked hard in getting these numbers here. It's not new to us. That's important. But I thank you all. I know you and your staffs are all interested in -- in the city and the effort that's put forth in creating this -- is an exact demonstration of that. So, again, thank you all. De Weerd: Well, I believe that Stacy kicked us off with saying this was truly a citywide budget. You might have had directors representing their individual departments, but they stood in front of their peers and presented their budgets and they didn't defend them, they discussed them and they discussed it with an eye on what is the best for our community and there was a lot of give and take and compromise and concession in saying, you're right, this is more important and this was truly a leadership budget that was presented to you over the last two days and I'm really proud of that team that they had some difficult discussions and no one threw a punch -- maybe someone might have wanted to, but I'm very proud of the budget that was presented to you, because there was a lot of thought and heartache behind it and also what Stacy said is oftentimes in the past there has been this perception of a difference between the General Fund and Enterprise Fund. While we know legally there probably is in the collection of those, but they all come from the same taxpayer and they are to pay for services and so while the Meridian City Council - Budget July 10, 2013 Page 64 of 65 General Fund presented theirs, there was no line drawn, every single person was engaged and the same with the Enterprise Fund budget presentation as well, which wowed the socks off some of the directors in listening to the Enterprise Fund items. So, it's been good for our team as well to be a part of this more consolidated approach and we love to see that every year we do get better. Any other comments? Otherwise, I would -- Kilchenmann: Madam Mayor, I -- Lavey: Madam Mayor? Kilchenmann: Oh. Sorry. Lavey: No. Stacy can go first, but I have a comment as well Kilchenmann: Oh. I just wanted to thank everyone and say that we can rest for a week and, then, we can start updating the capital improvement plan, so we will take about three or four days off and, then, we will start. De Weerd: And, then, you will have a salary long term comprehensive plan to get underway and -- yeah. Work is not over, but -- Lavey: Madam Mayor, Council, we appreciate the comments. We take them to heart and what they mean to us, but we need to throw them back at you, too, because I happen to be kind of in the technical group or subject matter expert group where the electeds don't have the trust in that group, they put the group together, yet they question every single thing that is done and so although that you have trust in us, we have trust in you to present it to you and that you will listen to it and go forward with it. So, we really have to throw it back on Mayor and Council, too, for having the faith in us to get the job done. It really makes it a true team approach when we do it that way. So, when we talk it being a citywide budget, it is citywide in regards to the senior leadership team, the elected team, and even our staff. So, we throw a thanks back to you as well and it's much appreciated. Bird: Thank you. Niemeyer: Madam Mayor, I feel like a councilman right now and we all get our turn around the table, but -- De Weerd: Well, you're not, Mark. Niemeyer: That's true. Thank goodness. Do I want to echo what -- what's been said. I think, Councilman Bird, you hit it on the head in that we have a leader and directors that we work with everyday that challenges us, that it makes us look at those line items and that asks questions and so when we bring these budgets to you I think it's a whole lot easier. So, I want to give kudos to the Mayor. Also to you as Council for your support. Meridian City Council - Budget July 10, 2013 Page 65 of 65 know I speak on behalf of the directors. I do want to just take a second, too, and thank Bill Nary. It was alluded to earlier with this transition of HR how -- how he has been able to wear five hats at the same time has been beyond me. You have been an asset to our department in the work you have done, so I just wanted to thank you for that as well. And thank you to all of you for your support. De Weerd: Thank you, Mark. Okay. Do I have a motion to adjourn this love fest? Bird: So moved. Rountree: So moved. Second. Zaremba: Second. De Weerd: All those in favor say aye. All ayes. MOTION CARRIED: ALL AYES. MEETING ADJOURNED AT 2:33 P.M. (AUDIO RECORDING ON FILE OF THESE PROCEEDINGS) MAYOR T DE WEERD 4? / / o DATE APPROVED Utility Billing Software Project Governance Structure r ---------------------- Project Team -------------------- ----------------------------- Utility Billing Software Project Members Steering Committee: - Public Works Director - City Clerk / Director of IS - CFO / Treasurer Project Sponsor: CFO/Treasurer Project Manager: - IT Project Manager Business Lead / Core Team: - Team Lead: Deputing Director/ Controller - Billing Manager - Billing Administrator - Water Superintendent - Meter Technician II - Utility Analyst Technical Lead / Core Team: - Team Lead will be Infrastructure Support Manager ? 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