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HomeMy WebLinkAboutCity Council-Minutes-6/16/2016  City of Colleyville                                                                                                  Page 1   City of Colleyville City Council  Worksession Agenda City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Thursday, June 16, 2016 6:00 p.m. Executive Conference Room Third Floor ­ City Hall 1. CALL TO ORDER  2. PRESENTATION AND DISCUSSION     2a Presentation and discussion of the annual budget    2b Overview of compensation and benefits 3. ADJOURNMENT  I hereby certify this agenda was posted on City Hall bulletin boards Monday, June  13, 2016 by 5:00 p.m. Amy Shelley, TRMC City Secretary A quorum of any Colleyville board, commission, or committee may be  present at this meeting.  Any matter on this agenda may, at the discretion of the governing body, be  opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires  special accommodations, please advise the City Secretary at least 48 hours in  advance at 817.503.1133, and reasonable accommodations will be made to assist  you.  City of Colleyville Page 1 City of Colleyville City Council Worksession Minutes City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com Thursday, June 16, 2016 Executive Conference Room Mayor Richard Newton called the Colleyville City Council Worksession to order on June 16, 2016, at 6:00 p.m. ROLL CALL: Mayor Richard Newton, Mayor Pro Tem Chris Putnam, and Councilmembers Tammy Nakamura, Bobby Lindamood, Jody Short, and Mike Taylor Absent: Councilmember Nancy Coplen City Manager Jennifer Fadden, Assistant City Manager/Director of Public Safety Mike Holder, Chief Financial Officer Brian Hogan, Human Resources Director Rachel Huitt, Public Works Director Jeremy Hutt, City Engineer Cheryl Taylor, Strategic Services Manager Adrienne Lothery, and City Secretary Amy Shelley 2. PRESENTATION AND DISCUSSION 2a Presentation and discussion of the annual budget Strategic Services Manager Adrienne Lothery presented the annual budget and answered questions of the City Council. Mayor Newton asked staff if the fund balances shown are shown as the minimum. Manager Lothery replied yes, with calculating the 90 days. Councilmember Putnam asked staff if that is not where we are right now. Manager Lothery replied correct, those are shown as minimums. Mayor Newton asked staff where the approval of purchases and contracts over $50,000 come from. Manager Lothery replied that is state law. Mayor Pro Tem Putnam asked staff what is the current balance of the General Fund. Chief Financial Officer Brian Hogan replied currently the balance is $9.5 million. Mayor Newton asked staff about the revenues over expenditures. Chief Financial Officer Brian Hogan replied it was $1.3 million, together they transferred $2.3 million with $1 million being the draw down. Mayor Newton asked staff if that is slightly more from the Utility Fund. Chief Financial Officer Brian Hogan replied roughly. City Council Minutes June 16, 2016 City of Colleyville Page 2 Mayor Newton asked staff if the roll back is already a state law. Manager Lothery replied yes, and we would not be able to adopt a budget that goes over seven percent. Councilmember Short asked staff if the voters may petition for an election. Manager Lothery replied yes, but we would never adopt a rate higher than the roll back rate because of Charter limitations. Mayor Newton asked staff if there are going to be any issues with TAD this year, given their software issues. Manager Lothery replied more of their software conversion issues were related to stopping the new data input, which then stopped updating values; therefore, when they converted into the software with new values in their system, they ended up having artificially low values last summer, so this year, the data is updated and accurate. She added TAD is hosting taxing unit meetings so that cities and school districts can meet with them to better understand their process because there are a lot of protests this year based on the values. Mayor Newton asked staff how they decide which fund a vehicle is a part of, like the utility or drainage fund. Manager Lothery replied there is a fleet maintenance manager that maintains a list of what vehicle services which fund. Mayor Newton asked staff about the gas leases and if any gas wells are currently producing. City Manager Jennifer Fadden replied the site on Pleasant Run Road was the only drill site projected to touch the City’s lease area, and since that is going to be capped, it is likely there will be no royalty revenue. Mayor Newton asked staff about the original revenue from the gas lease. City Manager Jennifer Fadden replied between the Parks Tomorrow Fund and the Colleyville Tomorrow Fund, it was $7.5 million dollars. Mayor Newton asked staff how the revenue was split between the Parks Tomorrow Fund and the Colleyville Tomorrow Fund. City Manager Jennifer Fadden replied the split was based on the land in each area for future investments. Mayor Pro Tem Putnam asked staff about the special revenue funds associated with Parks. Manager Lothery replied a little over $4 million. Councilmember Lindamood asked staff about the use of the $0.2 million in the SH26 management support. City Manager Jennifer Fadden replied this is how we are funding the community outreach program, in addition to the additional staff support for the SH26 construction project. Councilmember Lindamood asked staff if this is for James Hubbard’s position. City Manager Jennifer Fadden replied it is a temporary construction manager. City Council Minutes June 16, 2016 City of Colleyville Page 3 Mayor Newton asked staff if the City is still divided into four sections for impact fees. City Manager Jennifer Fadden replied there are two service areas, the east (Service Area 1), and west (Service Area 2) sides of SH26. Mayor Newton asked staff about the escrows and perimeter street fees. City Manager Jennifer Fadden replied the escrows and perimeter street fees are for future enhancements to the adjacent facility. Mayor Newton asked staff if those are used for a more general area. Public Works Director Jeremy Hutt replied no, they are used for a more restrictive area. He stated there are neighborhood districts in which the sidewalk escrows are used. Mayor Newton asked staff if there is a list of streets and the associated perimeter street fees and funds. City Manager Jennifer Fadden replied yes, there are dozens. Mayor Newton asked staff if the vehicle and equipment replacement fund is used for any/all vehicles. Manager Lothery replied it is used for programs and services within the General Fund, and there are other vehicles used in other funds, such as the utility and drainage funds. Mayor Newton asked staff about the sales tax incentive fund and what it is utilized for. Manager Lothery replied it is used for economic development incentives, and it is money that was transferred a number of years ago. Mayor Pro Tem Putnam asked staff why those funds were not rolled into the EDC. Manager Lothery replied those have to be accounted for separately due to the sales tax. City Manager Jennifer Fadden added the CEDC is a separate statutorily authorized municipal corporation under state law, as a 4B Corporation, and the revenue generated is limited to the half-cent sales tax authorized by the voters in 1998. She stated the $357,333 created a new fund in the 2005 timeframe to account for a number of Chapter 380 agreements with the Town Center development. Mayor Pro Tem Putnam asked staff if those funds will need to be reprogrammed. City Manager Jennifer Fadden replied those agreements provided for sales tax rebates, which the City has paid out a portion, but because those businesses no longer exist, we believe the commitment no longer exists, and we have asked for a legal opinion about this. Mayor Newton asked if the same thing exists with the Strategic Initiatives Fund, in that we could program to be used as seen fit. City Manager Jennifer Fadden replied correct, with a comfortable level of no future liability. City Council Minutes June 16, 2016 City of Colleyville Page 4 Councilmember Lindamood asked staff when the attorney will know. City Manager Jennifer Fadden replied he has the information and as soon as she knows it, she will pass it along. Mayor Pro Tem Putnam asked staff about the establishment of the Strategic Initiatives Fund. City Manager Jennifer Fadden replied it was established in 2013, with $500,000 transferred from the General Fund, and used as a tool for Economic Development incentives, or anything else for strategic investments. Councilmember Nakamura asked staff where the $30,000 for incentives comes from. City Manager Jennifer Fadden replied it comes from this fund. Chief Financial Officer Brian Hogan also explained the best practices of this fund. Mayor Pro Tem Putnam asked staff if we spend those down first, then eliminate the fund. Manager Lothery replied yes, by using the most restrictive funds first. Mayor Newton asked staff if $668,000 is taken from the General Fund. Manager Lothery replied yes. Mayor Newton asked staff how that will be accomplished. Manager Lothery replied it is unknown yet if a budget amendment will be necessary. Chief Financial Officer Brian Hogan added we typically will not have that entry until September, and by August we will have revenue estimates. Mayor Newton asked staff if the Drainage Fund is only to be used on drainage. Manager Lothery replied yes, that is the restriction. Councilmember Nakamura asked staff what is used per year on drainage, and does it vary year by year. City Manager Jennifer Fadden replied it is a fairly steady revenue source being assessed per month, per residential and commercial account. She added there is a drainage crew to maintain drainage facilities, debt services, and capital projects. She added in the FY17 budget, we have budgeted for a new street sweeper from this fund. Councilmember Nakamura asked staff if the street sweeper is used for drainage. City Manager Jennifer Fadden replied yes, it is used to maintain the curb and gutter system along the streets for the stormwater system. Mayor Newton asked staff about the next CEDC meeting. Manager Lothery replied August 10. Mayor Newton asked staff what they believe the biggest challenges are with this budget. Manager Lothery replied there are concerns about health care costs, personnel expenditures, and not having the Utility Fund transfer to work with expenditures. City Council Minutes June 16, 2016 City of Colleyville Page 5 Mayor Newton recessed the worksession at 7:08 p.m. Mayor Newton reconvened the worksession at 7:13 p.m. 2b Overview of compensation and benefits Human Resources Director Rachel Huitt presented an overview of compensation and benefits and answered questions of the City Council. Mayor Newton asked staff how many employees are from the various funds. Director Huitt replied there are 6.41 from the Drainage Fund; 161.365 from the General Fund; and 24.225 from the Utility Fund. City Manager Jennifer Fadden added there are also 3.625 with CEDC; 8 with CCCPD; and one Juvenile Case Manager. Councilmember Lindamood asked staff if there are some lumped together. Director Huitt replied they are broken out by program. Councilmember Lindamood asked staff if there is a way to see what each person makes. City Manager Jennifer Fadden replied yes. Mayor Newton asked staff what percentage is considered benefits and not salary. Director Huitt replied the average is between 30-40 percent. Mayor Newton asked staff if this changes per levels. Director Huitt replied based upon actual numbers by position. Mayor Newton asked staff if there are any national benchmarks. Director Huitt stated we benchmark this area because that is who we are competing with, and not sure if there is a national average for cities. Manager Lothery added we compare our data with those who provide similar areas of service. Director Huitt added TML may have something we could use to compare. Mayor Newton asked staff about how many contract people do we use. Director Huitt replied that is not something Human Resources tracks. Manager Lothery added Colleyville has a labor or temporary pool of employees we use, and those tend to be our audio/visual people, and those used at Colleyville Center for events. She stated we have roughly 20 of those employees. Mayor Newton asked staff if the labor pool employees usually staff ongoing activities, whereas, a contract has a beginning and an end. Director Huitt replied correct. City Manager Jennifer Fadden added the municipal court judge is a contract employee. Assistant City Manager/Director of Public Safety Mike Holder added there are also mowing contracts for parks maintenance. City Council Minutes June 16, 2016 City of Colleyville Page 6 Mayor Newton asked staff if they are contracting with companies for the mowing. Assistant City Manager/Director of Public Safety Mike Holder replied yes. Mayor Newton asked staff about the cost for the judge. City Manager Jennifer Fadden replied the judge is paid from the municipal court budget, which is funded by the General Fund. Councilmember Lindamood asked staff if there was a law passed about salaries. Director Huitt replied anything that pays more than $47,000 a year, and it is non- exempt, the position has to be re-evaluated to exempt. Councilmember Lindamood asked staff if they budget overtime for those positions. Director Huitt replied yes, and we watch those closely. Mayor Newton asked staff where the engineers fit in the bands. Director Huitt replied engineers are considered managers and directors and they fall in the E82 and E83 ranges. Mayor Newton asked staff about the philosophy with managing within the bands, moving from one to the other, and salary increases. Director Huitt replied merit increases are based on their performance evaluations, but no one moves within the band without receiving a pay increase. Mayor Pro Tem Putnam asked staff if there were some below the mid-band that we had to get into that band. Director Huitt replied yes. Councilmember Nakamura asked staff if this is done every year. Director Huitt replied yes. Mayor Newton asked staff how the employees reacted to moving to the band system. Director Huitt stated it was more difficult with some trying to understand it, and to others it was not as disruptive a system. Mayor Newton asked staff if they had qualitative versus quantitative concerns. Director Huitt replied it was difficult for those who came from a COLA environment versus being paid for performance. Mayor Pro Tem Putnam asked staff if they understand the system in a way they manage their careers, are they really not there yet. Director Huitt replied they understand it and know the next level for them. City Manager Jennifer Fadden replied it was particularly evident in public safety because in order to make more money they have to promote. She added part of the challenge is having those opportunities to promote. City Council Minutes June 16, 2016 City of Colleyville Page 7 Councilmember Lindamood asked staff about the fire and police chief positions. Director Huitt replied the fire chief is rolled into the director’s band, but the police chief is listed as Assistant City Manager/Director of Public Safety. Mayor Newton asked staff if they use bonuses as a means to compensate salary. Director Huitt replied no, bonuses are not done in the public sector. Mayor Newton asked staff about who the benchmarks are done with. Director Huitt replied we pull detail annually from World at Work, with a market study done every three to four years with a recommendation to do one in FY17. Councilmember Nakamura asked staff where the consulting positions are listed. Director Huitt replied we do not have consultants on staff, as we hire consultants to do that work. She explained that we go out to bid for those as needed. She added in the interim years, we benchmark on the national and regional level. Mayor Newton asked staff about how it is determined whether they move or fall below. Director Huitt replied the City Council provides direction as to whether we move everyone to bottom or make everyone the same. Mayor Newton asked staff if there are recommendations on raises based on where they are in the band. Director Huitt replied yes, the focus is to keep the workforce at the midpoint. Councilmember Lindamood asked staff if there is something else used other than an RFP for bids. Director Huitt replied there are cooperative purchasing agreements/networks, but not sure if there are any for compensation. Manager Lothery explained the various agreements the City currently uses. Councilmember Lindamood asked staff if the contract has to be approved if it is over $50,000. Manager Lothery replied yes. Councilmember Short asked staff if the City Council would still have to approve those contracts. City Manager Jennifer Fadden replied yes. Mayor Newton asked if the employee, who came from TxDOT, is not contract labor. City Manager Jennifer Fadden replied correct, he is a full time employee and he has been on board for five months. Councilmember Short stated 79 percent of employees below market seems very high. Director Huitt explained it is a lot of catching up to the range from FY14, not everyone got moved into the range. She added with a merit increase, those employees are starting to move. Councilmember Lindamood asked staff if 79 percent are the lower tiered workers, or is it spread across the spectrum from top to bottom. Director Huitt replied with City Council Minutes June 16, 2016 City of Colleyville Page 8 the hourly employees, 84 percent are below market, 16 percent are above; with salaried 70 percent are below market, 30 percent are at or above. City Manager Jennifer Fadden added this includes sworn. Director Huitt added with sworn employees, you are not looking at the midpoint, you are looking at the maximum of the range. Mayor Newton asked staff why being a career position matters. Director Huitt replied that because it is a career position, you look to see what those positions will max out at because you do not want them leaving for another city for the same position. Assistant City Manager/Director of Public Safety Mike Holder added it is a very competitive occupation, and there are less opportunities for advancement. He stated the step system moved those positions through the ranks, but that no longer exists. He stated often times new hires will ask about moving up in the ranks before accepting the position. Mayor Newton asked staff if positions can be bumped to the maximum to be able to keep those employees. City Manager Jennifer Fadden replied we do not. Councilmember Nakamura asked staff if this keeps them longer. Assistant City Manager/Director of Public Safety Mike Holder replied it has worked for Hurst. Mayor Newton asked staff if the decision was made not to do a merit for some years. City Manager Jennifer Fadden replied yes, because we could not afford to do it. Councilmember Lindamood asked if the employees know going into the budget that there will be no merit increases. City Manager Jennifer Fadden replied no, not necessarily. She stated there were times we did not follow the compensation adjustments or a market study. She stated in 2013 a market adjustment was made because we had experienced severe compression because we had not maintained the plan. Mayor Newton asked staff about the FTE counts through those years. Director Huitt replied in 2008, we had 190 FTEs; 2009, we had 191 FTEs; in 2010, we had 184 FTEs; in 2011 and 2012, we had 185 FTEs; and in 2013, we had 187. Councilmember Short asked staff if there is still an opportunity to promote, even if no merit is given. Director Huitt replied only if the position is vacant. Assistant City Manager/Director of Public Safety Mike Holder stated on the FTEs, several additions have been for public safety positons. Manager Lothery added most police positions added over the last few years are funded out of the CCCPD. Councilmember Short asked staff if the new fire station drove the need to increase those positions. City Manager Jennifer Fadden replied 12 new positions over a four year period. Assistant City Manager/Director of Public Safety Mike Holder added four sworn police officers were added and funded through CCCPD. City Manager City Council Minutes June 16, 2016 City of Colleyville Page 9 Jennifer Fadden added there was a reduction in the regionalization with jail and communications, we reduced by eight FTEs. Councilmember Lindamood asked staff if merit increases are earned not given. City Manager Jennifer Fadden replied correct. Councilmember Lindamood asked staff how those are determined. City Manager Jennifer Fadden replied there are three evaluation possible outcomes exceptional, successful, or needs improvement. She added all evaluations go to HR for review and citywide consistency. Mayor Newton asked staff if there is a finite amount of money those increases come from. City Manager Jennifer Fadden replied correct, in the budget process we estimate the amount needed for compensation, and once the evaluations are done, we then determine the percentages of merits. Mayor Newton asked staff if there are meetings held with the directors to decide the equity on the ratings. City Manager Jennifer Fadden replied yes, it is done on the department level. Councilmember Lindamood asked staff if they have a certain amount of time to complete the evaluations. Director Huitt replied yes. Councilmember Lindamood asked staff if the consultant recommended the increase. Director Huitt replied yes, and we then budget for merit increases. Councilmember Lindamood asked staff if lowering the merit to 2.5 percent, and then gave an amount across the board would keep people happy. Mayor Pro Tem Putnam stated this violates the philosophy. Councilmember Lindamood stated it still provides a merit to those who have performed. Mayor Pro Tem Putnam asked staff if the other cities share this information. Director Huitt replied yes, it is all public information. Councilmember Short asked staff how The Colony landed in our group. Director Huitt replied North Richland Hills and Euless did not respond from our area, but The Colony is similar to our size. Mayor Newton asked staff about the 3.36. Director Huitt replied this is the average received across the board, with 184 employees who received a merit. Mayor Newton asked staff about the percentage difference between exceptional and successful. City Manager Jennifer Fadden replied 4 percent and 3 percent. City Council Minutes June 16, 2016 City of Colleyville Page 10 Mayor Newton asked staff how they came up with those percentages. Director Huitt replied the pool was created through the budget process, and it was backed into the percentage. Councilmember Lindamood asked staff if everyone had the same opportunity. Manager Lothery replied if we had had more exceptional evaluations, the percentage would have been less. Chief Financial Officer Brian Hogan replied we do not look at that at the department level. Director Huitt added all employees are in one spreadsheet. Mayor Pro Tem Putnam asked staff if the lack of being able to advance contributes to the overturn problem. City Manager Jennifer Fadden replied if they have the ability to move on, and the skill set, it does contribute to them leaving. She added we provide exit interviews and every quarter we send an employment report to document who and why they left to the City Council. Mayor Newton asked staff if they are executing the compensation study now. Director Huitt replied no, we are doing a market adjustment. City Manager Jennifer Fadden replied we are recommending funding for the study in the FY17 budget to potentially implement it in FY18. Mayor Newton asked staff if the employees receive a total compensation report. Director Huitt replied yes, once a year. Councilmember Taylor asked staff if they could provide City Council with a redacted version so that they can see one of those. Director Huitt replied yes. Mayor Newton asked staff if there is a cap on TMRS. Director Huitt replied there is no cap on the amount. Councilmember Taylor asked staff why there is a 2-1 match on TMRS. Director Huitt replied this match is the same all around us. She added new hires want to know what that match is because they can go to another city with a 2-1 match. Mayor Pro Tem Putnam asked staff about the annualized basic increase percentage. Director Huitt replied initial renewal of 19.86 percent. Information Services Manager Chris Pena provided an update to the City Council relative to the sound updates made in the Council Chambers under the annual budget portion of this agenda. Mayor Newton asked staff if his microphone has been ramped up. Manager Pena replied yes. Mayor Newton asked staff if the updates will help to balance the audio on the video. Manager Pena replied yes. City Council Minutes June 16, 2016 City of Colleyville Page 11 Councilmember Lindamood asked staff if they will notify City Council if they are not being heard. Manager Pena replied yes. Councilmember Taylor asked staff if the microphones are in the center of the seats. Manager Pena replied the microphones have been placed right back where they were before, but he would like to see how the changes are before any other changes are made. Mayor Newton asked staff if the boarder microphones or the directional microphones could both be used. Manager Pena replied the biggest problems are the ends and at the citizen podiums. Mayor Newton asked staff if there is someone in the room managing the audio. Manager Pena replied yes, usually two people. Assistant City Manager/Director of Public Safety Mike Holder added an outside consultant has been brought in to provide input relative to the sound. City Manager Jennifer Fadden explained the process for Monday evening’s worksession. She stated if City Council has specific questions, for them to please provide feedback so that staff can proactively address those questions. She added all department directors will be at the worksession to respond to questions. 3. ADJOURNMENT There being no further business before the City Council, Mayor Newton adjourned the worksession at 9:31 p.m. APPROVED BY A VOTE OF 6 AYES, 0 NAYS, AND 0 ABSTENTIONS ON THIS THE 12TH DAY OF JULY 2016. Minutes taken and prepared by: Amy Shelley, TRMC City Secretary