05/25/1989 - Minutes M �1
MINUTES: Committee of the Whole
Thursday, May 25, 1989
5:00 - 9:30 p.m.
City Council Conference Room
City & County Building, 325
451 South State Street
In Attendance: Florence Bittner, Wayne Horrocks, Sydney Fonnesbeck, Alan
Hardpan, Tom Godfrey, Roselyn Kirk, Willie Stoler, Mayor Palmer DePaulis,
Cindy Gust-Jenson, Mike Zuhl, Christine Richman, Lee King, Linda Hamilton,
Scott Bond, Steve Fawcett, Cam Caldwell, Rick Johnston, Lee Ritzman, Karen
Suzuki-Hashimoto, Jane Erickson, Frank Fraser, Pete Pederson, Frank Florence,
Kraig Kaizumi, Rosemary Davis, Stephanie Loker, Kimball Young, Jim Byrne, Sgt.
Mac Connole, Press
1. Rick Johnston and Lee Ritzman, Office of the City Engineer, briefed the
City Council on proposed changes to the City ordinance regulating work in the
public way. Mr. Johnston indicated that the proposed changes to the ordinance
were prompted by the utility companies voicing their confusion over seemingly
contradictory provisions, and by the Engineer's Office finding it difficult to
reasonably assess the needed fees.
Council Member Stoler asked if there had been any complaints from the
utility companies or construction companies concerning the increases. He
indicated that his concern was that the companies may claim that the new fees
are exorbitant. Mr. Ritzman stated that he had met with the utility companies
and they were comfortable with the changes.. He indicated that because of
the potential savings included in the new "incentive" program, the companies
which work with the City a lot felt that they could benefit from the changes
in the ordinance. Mr. Ritzman stated that by consistently conforming to the
provisions in the ordinance, companies could reduce the fees charged for their
inspections.
2. Karen Suzuki-Hashimoto, Director of Human Resource Management, reviewed
her Fiscal Year 1989-90 budget request with the City Council. Ms. Hashimoto
stated that because of increasing health care costs, the benefits portion of
her budget increased considerably.
Council Member Bittner asked if the Department had reviewed the use of
prescription cards and the possibility of increasing the co-payment amount for
employees. Jane Erickson, Risk Manager, stated that the City had just
recently returned to the use of prescription cards. She indicated that the
only population who increased prescription claims when using a prescription
card are the retired employees.
Cam Caldwell, Council Budget Analyst, briefed the Council on his
assessment of the Human Resource Management budget request. Mr. Caldwell
indicated that he would recommend that the Council direct the Department to
explore alternative methods of funding the Employee Fitness Program. He
stated that elimination of the program could actually cost the City money in
terms of increased health insurance claims. Mr. Caldwell indicated that
another recommendation he has concerning the budget is that the Council give
direction concerning the placement of the Risk Management function within the
administration.
Mr. Caldwell stated that his final recommendation concerns the
implementation of the performance based pay program. He stated that the
Administration needs to lay the ground work for the program by training
supervisory personnel in the management of the system.
Council Member Bittner expressed her concern that Departments hire
personnel as contract employees and then move present them to the City Council
as not affecting the operating costs of the Department. She stated that in
her opinion this practice is simply a means of avoiding having to bring
service level increases to the Council prior to their implementation thereby
bypassing the Council's authority. Ms. Hashimoto stated that it is possible
that some Department Heads use the contract employee option as a means of
bypassing the Council, but that in many cases using a contract employee is
legitimate policy decision.
Ms. Erickson indicated that in the case of the part-time contract
employee who had been used by the Risk Management function, the individual who
had been employed under that contract had resigned, and she had requested that
the functions of that employee be assigned to a new full-time employee. She
stated that there is no net increase in the cost of the employee because the
contract employee was paid at a higher rate.
Council Member Horrocks asked why there were a number of "supervisors"
listed on the Department's organizational chart who supervised only one
individual. Ms. Hashimoto stated that in her Department "supervisor" is
simply a classification demonstrating responsibility for ensuring fulfillment
of an office need, not necessarily the role of work-load dispenser. Council
Member Horrocks asked if supervisor's are automatically classified in the 300
Series. Frank Fraser, Government Compliance Administrator, indicated that
there are supervisors who are classed in the 200 and 100 series as well.
Council Member Stoler asked if the reclassification of employees in the
Human Resource Management Department had resulted in raises for the employees.
Ms. Hashimoto stated that the reclassifications had resulted in eleven
adjustments upward and two downward on the system. Seven of the eleven
adjustments upward were a result of the City-wide clerical audit. The
remaining reclassifications were made necessary due to the reassignment of
duties as a result of the Departments recent reorganization. She indicated
that although the adjustments upward in the system meant that in the long run
the employees would "top out" at a higher salary, that did not mean that when
the employees were reclassified they were given a substantial raise. Ms.
Hashimoto indicated that it is the policy of the City that when an individual
is reclassified they are put in at a step closes to the amount they are
currently paid.
Council Member Bittner asked what actually caused the 23.4% increase in
the budget. Mr. Caldwell stated that salary increased 15. 2%. Council Member
Bittner asked if the budget figures included the Administrative Services
department. Ms. Hashimoto indicated that the two departments had not yet been
merged in the budget document. Council Member Bittner asked what is included
in the benefits increase. Steve Fawcett, Budget Director, indicated that the
benefits line item in the Risk Management Division budget included the
payments to the various insurance carriers which makes that particular line
item appear to be extraordinarily large. Council Member Bittner asked at what
percentage level of a City employee's base pay are benefits provided. Mr.
Fawcett indicated that the "hard" costs, such as insurance premiums, FICA, and
retirement contributions are approximately 25%. Cindy Gust-Jenson, Executive
Director, distributed a letter to Council Member Stoler from former Director
Linda Hamilton which indicated that when car benefits, and other "soft" costs
are included the percentage increases to between 36.30% - 47.75% depending on
the pay plan.
Council Member Bittner asked what is included in the Risk Management
Fund. Ms. Erickson stated that the Risk Management budget includes all
insurance costs except the City's self-insurance fund, or the "governmental
immunity" fund. Mr. Caldwell indicated that he and representatives of the
Administration had spent considerable time reviewing costs included in the
Risk budget, and he felt comfortable with the budget itself. Council Member
Bittner asked that staff carefully review the issue of the costs of
prescription cards. Ms. Hashimoto said that she would provide more
inniffoormation to the Council in writing on prescription card use. Council
Member Stoler indicated that he would like staff to review the
reclassifications conducted in the Department, to ensure that they were not
used as a method of bypassing the "no-merit" status of the current budget
year.
The City Council discussed and conducted straw polls concerning the
five staff recommendations on the Human Resource Management budget. The
Council review recommendation number one: That the Council eliminate the
Secretary support position for the Risk Management Section. The Council
Members observed that the Director of Human Resource Management had withdrawn
her request for this position due to reorganization as a result of the
merging of the Human Resource Management and Administrative Services
Departments. The Council asked for a clarification on recommendation number
two: That the Council adopt a Legislative Intent encouraging the
administration to establish a program to enhance the department's tools to
track loss history and cost control for use in establishing additional cost
containment programs. Ms. Erickson asked what specifically Mr. Caldwell was
suggesting since the Division already tracks all of the demographic material
involved. Mr. Caldwell indicated that the issue is how that information is
extracted and analyzed. Council Member Horrocks asked if the City had the
capability to extract and analyze the information themselves. Lee King,
Council Budget Analyst/Auditor, stated that the Council had cut the request
for the Mainframe statistical package from the Data Processing budget, and
thereby eliminated the City's ability to analyze demographic information. The
Council voted 6-0 against the staff recommendation.
The City Council voted 3-3 on recommendation number three: That the
Council request the Administration to provide an alternative program for
funding the employee fitness membership program. The Council voted 3-3 on
recommendation number four: That the Council provide input to the Mayor
regarding the placement of the Risk management function.
Council Member Godfrey asked why staff recommendation number five was
presented: That the Council establish a Legislative Intent encouraging the
Administration to continue to lay the foundation for the orderly development
of a performance based compensation plan, including the training of
supervisors and the pilot testing of a performance based program. He observed
the Ms. Hashimoto had presented the Council with a proposed performance based
pay program, and a suggestion for a pilot program and the Council had
indicated that they did not wish to pursue the program. Ms. Hashimoto stated
that she will follow the Council's policy direction on the issue when she
receives a clear signal. Council Member Bittner indicated that her problem
with the program suggested by Ms. Hashimoto was the fact that the merit system
has become a negotiating issue with the City's union. She asked how a
performance based system can be implemented when it is also negotiated.
Council Member Godfrey stated that the performance based pay system can be
implemented, and then if the program is funded each year, the employees will
divide up the "pot" based upon their supervisor's assessment of their
performance. Council Member Godfrey suggested that the Council direct Ms.
Hashimoto to move forward on training supervisor's to work with the
performance based program, and be prepared to implement it in the next (90/91)
fiscal year. The Council voted 4-2 in favor of the suggestion.
3. Pete Pederson, Fire Chief, briefed the Council on his proposed Fiscal
Year 1989-90 budget. He indicated that he is eliminating one battalion chief,
and one fire investigator because the positions have been vacant for one year.
During that year, the fire department's efficiency was not damaged by the
vacancies. Chief Pederson stated that the major policy issues facing the City
include the funding of emergency medical services. He indicated that City
residents currently pay a tax levy to the County to fund emergency medical
services, but that the City does not receive any of that funding. He observed
that the City has been considering charging for emergency medical services,
but does not want to "double-tax" the residents. Council Member Bittner
requested that the Administration begin negotiating with the County concerning
the allocation of those tax levy funds. She asked that the Administration
pursue an Interlocal Cooperation Agreement with the County whereby the money
received from City residents will be passed on to the City to fund our
emergency medical services.
Council Member Kirk asked if the Department anticipated being able to
eliminate dispatchers by January as a result of the functional consolidation
of public safety dispatching. Chief Pederson indicated that he hesitates to
promise anything to the Council by way of cost savings in the dispatch area
since there is no historical reference for consolidated dispatch.
Mr. Caldwell reviewed his assessment of the Fire Department budget with
the Council. He indicated that the only major issue which the Fire Chief
had not addressed was the question of additional fire inspectors. He stated
that the Council had adopted the Uniform Fire Code which provided a tool to
increase fire inspection revenues, and he recommends that the fire department
increase their fire inspection staff by one. He estimated that the one
additional fire inspector would have to conduct only three inspections a day
in order to generate enough revenue to pay his/her own salary.
The Council conducted a straw poll of the staff recommendations on the
Fire Department budget. The council voted 6-0 in favor of recommendation
number one: That the Council increase department funding for a Fire
Prevention Specialist/Inspector to conduct Uniform Fire Code inspections. The
Council agreed to fund the new inspector for six months beginning in January.
The Council voted 3-3 on recommendation number two: That the Council reduce
the funding of a secretary from full-time to part-time to assist the Hazardous
Materials program at a savings to the City of about $9,500. The Council voted
6-0 against recommendation number three: That the Council reduce funding for
brush coats from $15,000 to $4,000. The Council voted 6-0 in favor of
recommendation number four: That the Council establish a Legislative Intent
requesting the Administration to complete a study of charges for paramedic and
EMT services and negotiate with the County to return some portion of the tax
levy for Emergency Medical services to the City. The Council voted 4-2 in
favor of recommendation number five: That the Council establish a Legislative
Intr_.nt indicating its continued intent to work with the administration to
evaluate the Fire Department's consolidated dispatch operations. Council
Member Bittner indicated that she would like the $20,000 funding for a study
of consolidated dispatch to come from the City Council 0ffice's auditing
account.
Council Member Kirk proposed a sixth recommendation, that the Council
direct the Fire Chief to study the implementation of flying squads to
supplement fire service. The Council voted 3-3 on the issue.
4. The City Council discussed the Sunnyside Recreation Center as it is
proposed in the Fiscal Year 1989-90 Capital Improvements Program budget.
Council Member Kirk indicated that the site selection committee for the new
fire station number 10 had agreed to delay finalization of the site and would
accept the beginning of construction until January of 1990 in order to ensure
that they have selected the best possible site. Council Member Bittner
suggested that $450,000 of the funding originally allocated to the fire
station be transferred to the Sunnyside Recreation Center in order to fulfill
the City's obligation to the project. She indicated that the funding should
only be released when the funding package for the center is ready and
construction is set to begin. Council Member Bittner further indicated that
it is her intent that the City not be responsible for the Center once it is
built, but that when/if the Center is sold the City be reimbursed for its
share of the equity.
Council Member Godfrey asked what Council Member Bittner meant by
"funding package being ready." Council Member Bittner stated that she meant
whenever the foundation was ready to begin construction, she didn't care how
they came up with the rest of the money needed. Kimball Young, President of
the Sunnyside Recreation Center Foundation, indicated that he appreciated the
City's attempts to fully fund their portion of the Recreation Center. He
stated that the City will still need to be involved in developing the
financing package for the rest of the construction costs. Council Member
Hardman stated that that would be fine as long as the City is not obligated
for any portion of the bonded amount. Mr. Young stated that the City could
enter into a "lease/sublease" package whereby the City takes the lead, and
subleases the property to the School Board and the 501C3 Corporation. Council
Member Bittner asked if that would entail the City lending its credit rating
to the bonding package. Mayor DePaulis indicated that the process would be
similar to that used to finance the Hospital Revenue Bonds. Council Member
Bittner asked who would be responsible if the 501C3 Corporation defaulted on
the bonds. Mr. Young stated that the Corporation would have a Bank Trustee
who would take over at that point.
Mr. Young stated that there was another issue he would like the Council
to review, concerning the City's practice of charging a 6% fee for engineering
review, and the costs of putting the project to bid. Stephanie Loker stated
that as long as the City retains engineering review and puts the project out
to bid, the City ensures quality control on the project. Scott Bond, Director
of Policy and Budget, stated that the City was planning to bid the project and
inspect the construction. He indicated that the architect had their own
consulting engineer who would perform structural design for the project.
Council Member Bittner stated that she is uncomfortable with the City becoming
too involved in the project. Mr. Young indicated that the project sits on
City land, and the City is the ultimate owner of the facility. He stated that
his foundation will simply be in a partnership relationship with the City.
Council Member Kirk observed that backing out of the project at this point
would place the City in a very uncomfortable position since Council Members
had approached the School Board and convinced them to fund their portion of
the project. Council Member Bittner indicated that she supports the funding
of the originally promised $700,000, but that the City should not be
responsible for hidden costs in the project.
Mr. Young stated that it was his impression that if the foundation had
been allowed to coordinate with a contractor upfront instead of having to go
through the City's bid process, he could have already saved 20% on the cost
of the project.
Council Member Stoler indicated that when he appeared before the School
Board he had stated that the City would take the initiative on the project.
He indicated that at that time no one thought of the City's administrative
costs, and he would be uncomfortable charging the school board for an
additional 6%. He stated that he doesn't like the idea of the City "eating"
additional costs, but wouldn't want the School Board to misinterpret the
City's insistence on reimbursement of administrative fees as a result of
misrepresentation on his part.
Mr. Bond stated that he and his staff will review the issue and return
to the City Council with options pertaining to the program.
5. Council Member Bittner asked if how many Council Members would be
attending the Olympic Bid presentation in Des Moines. Council Member Kirk
stated that Tom Welch, Chair of the Organizing Committee, had come to her and
Council Member Fonnesbeck and asked them to attend. She stated that they had
agreed, but that she was paying her own way at great hardship.
Council Member Kirk stated that she and Council Member Fonnesbeck were
now having second thoughts concerning the necessity of their attendance since
they were informed that only 15 people will be attending the presentation
before the USCG selection committee. Mike Zuhl, Chief of Staff, stated that
he still felt that it would be beneficial to have Council v'•mbers in Des
Moines since there will be numerous social events at whic hey can lobby the
Committee Members.
W. M. "Willie" tole , a
ATTEST:
Ci y ec
Human Resource Management
Executive Summary
* The proposed budget for the Department of Human Resource
Management is $12,726,923, or 23.4% higher than the FY 88-89
budget. The difference between these two figures is due to a 25%
increase in health care premiums, and the inclusion of the
employee portion of HMO premium costs previously not budgeted.
*- The department has proposed transferring an Administrative
Secretary from Administrative Services to the Risk Management
Section to provide secretarial support. Council may wish to
consider eliminating this position. -
* In light of high health costs, Council may wish to adopt a
Legislative Intent encouraging the administration to establish a
program to enhance the department 's tools to track loss history
and cost control for use in establishing additional cost
containment programs.
* National statistics cited by the Employee & Corporate Relations
Officer indicate that employee fitness programs seem to reduce
time off the job and improve productivity. On that basis, Council
may wish to request the Administration to provide an alternative
program for funding the employee fitness membership program.
Such a program may involve trading additional sick days or
vacation time, or may limit participation to employees who meet
some other incentive based qualifying requirement.
* Council may wish to provide input to the Mayor regarding the
placement of the Risk Management function, identified as an issue
in the Peat Marwick finance audit, and adopt a Legislative Intent
encouraging the Mayor to review the placement of this function.
* During the department 's policy presentation earlier this year,
Council indicated its support for the establishment of a pilot
performance based compensation program. Council may wish to
establish a Legislative Intent encouraging the Administration to
continue to lay the foundation for the orderly development of a
performance based compensation plan, including the training of
supervisors and the pilot testing of a performance based program.
-1-
Human Resource Management
Council Staff Analysis
Prepared by Cam Caldwell
The proposed budget for the Department of Human Resource Management is
$12,726,923, or 23•1% higher than the FY 88-89 budget. The difference between
these two figures is due to a 25% increase in health care premiums, and the
inclusion of the employee portion of HMO premium costs previously not
budgeted.
Personnel Changes
The proposed budget staffing document indicates that the number of full-time
equivalent (FTE) staff will increase by 2.5 positions, as compared to FY 88-
89. One position is a Secretary to staff the Risk Management Section. An
Office Technician position is proposed to fill a position which had been
occupied by a contract employee who had served as Worker's Compensation
Coordinator on a part-time basis. The former Office Technician has been
reclassified as the Worker's Compensation Coordinator. A third position, a
Clerk:II position, is proposed to increase from part-time to full-time. The •
extra compensation to fund this position will be derived from delaying the
, hiring of other positions. ,
A new Loss Control Coordinator position has been hired. This position was in
the staffing complement this current fiscal year but underfilled by an Office
Technician I position. The Personnel Manager position and the Fleet
Safety/Training Coordinator position are currently vacant. Finally, Public
Utilities has budgeted to fund a Personnel Representative position and the
savings from the vacant position will partially finance employee training and
pay for a Human Resource Analyst.
Accompanying this report is a current department organizational chart, showing
the organizational structure of the department. Fourteen of the 21.5
positions in the current year staffing document have been reclassified during
the past twelve months. The Personnel Representatives and 300 series
employees were part of this reclassification. Two positions were reclassified
downward as part of the Human Resource Management reorganization.
Service Level Changes
The decision to staff the Loss Control Coordinator position is an effort to
increase the ability of the department to provide staff assistance to other
City departments in developing a strategy to reduce the number and cost of
claims. The Risk Manager position will be vacant for several months due to
the costs associated with the resignation of the current Risk Manager
effective in July. The duties of the new Risk Manager will remain the same.
The currently vacant Personnel Manager position will be filled early in the
new fiscal year and will be involved in establishing an organization
development and employee training program for the City. Funding for city-wide
-2-
•
training is obtained by an assessment to the individual City departments when
a staff member attends a training program provided by Human Resource
Management. Currently- there are 24-supervisory staff enrolled in an 80 hour
training course. A second group of 24 staff are scheduled to take this same
training program later in the fall.
The proposed additional clerical staff support will provide an added level of
service to the Worker's Compensation program, the Records Section, and provide
additional secretarial assistance for the Risk Manager.
The department has budgeted $20,000 to pay for consulting assistance to
confirm that the City's medical benefit, plans do not discriminate against
lower paid employees, in compliance with the 1986 Tax Reform Act.
Specifically, the consultant will conduct a computerized analysis of the
City's benefit system. An additional $20,000 will pay for other employee
benefit reviews.
Budget Issues
The City has budgeted $454,075 in an insurance contingency account to pay for
the City share of a subsidy to the retiree insurance premiums for 89-90.
Without this subsidy the retiree insurance premium would have increased by
80%, based upon this group's experience. Costs for-this premium increase are
being shared by all City employees covered by any health insurance program.
The expected amount of the premium subsidy is $454,075, but that amount is
uncertain. There are about 500 employees in this employee group.
Policy Issues
The employee benefits premium information system is dependent upon a
consulting actuary to track historical information about usage trends. The
department has not identified the information that it would like to track
regarding demographic trends and loss history data beyond that already
provided by the actuary. Council is aware that the cost of health insurance
is a national problem. The City's PEHP claim experience this past year has
been less than other groups in the PEHP pool. Although management of this
program is administrative rather than legislative, this is an area with a
significant budget impact, and tracking demographic trends and loss history
data may help the City in the development of additional health care cost
containment strategies.
One of the elements of the employee health benefit program that has been
proposed to be discontinued is the Employee Fitness Program. Currently, about
220 City employees have committed to participate in a three day per week
fitness regimen. Participating employees trade sick days for enrollment in a
fitness program paid for by the City. The amount proposed to be eliminated as
a result of this program is $62,500. This program has been popular for the
employees who have participated in it, but less than 15% of the eligible work
force is enrolled. Statistical data have not been kept regarding the
comparative health insurance, sickness, Worker's Compensation claims history,
or productivity level of employees in the program compared to nonparticipants.
However, the Employee & Corporate Relations Officer cites national data that
indicate that employees who participate in a formal fitness program use less
than half the sick leave than nonparticipants. In addition, national studies
confirm that productivity on the job is also higher.
-3-
The placement of the Risk Management function was addressed in the Peat
Marwick -audit.---This is -clearly an -administrative -rather -than 'a legislative - - --
issue. That study proposed that risk management be relocated to the Finance
Department. Although that is an option that merits consideration, the City
may also wish to consider locating risk management and worker's compensation
in the City Attorney's Office, inasmuch as the Government Immunity fund is
already in the City Attorney's Office. Placement of functions within the
Administration is an administrative role, but the Council may wish to
encourage the Mayor's review and provide its input.
In discussing the performance based compensation issue with the Director, she
noted that she perceived the City's labor negotiations process as
characterized by' employee perceptions that cost of living was the priority
because merit increases had been virtually automatic. The plan for
implementing a performance based compensation system in FY 89-90 is to review
pay structure, train supervisors, and complete other developmental steps to
lay the foundation for a performance based compensation program. This was
discussed by the Council as part of the department policy presentation, and
Council requested that a pilot program be developed. The Director will
present a pilot program to .the Council later in the year.
Staff Recommendation
1) Council may wish to consider eliminating the Secretary support
position for the Risk Management Section. •
2) Council may wish to adopt a Legislative, Intent encouraging the
administration to establish a program to enhance the department's
tools to track loss history and cost control for use in
establishing additional cost containment programs.
3) Council may wish to request the Administration to provide an
alternative program for funding the employee fitness membership
program. Such a program may involve trading additional sick days
or vacation time, or may limit participation to employees who meet
some other incentive based qualifying requirement.
4) Council, may wish to provide input to the Mayor regarding the
placement of the Risk Management function, identified as an issue
in the Peat Marwick finance audit, and adopt a Legislative Intent
encouraging the Mayor to review the placement of this function.
5) Council may wish to establish a Legislative Intent encouraging
the Administration to continue to lay the foundation for the
orderly development of a performance based compensation plan,
including the training of supervisors and the pilot testing of a
performance based program.
-4-
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KAREN SUZUKI-HASHIMOTO DEPARTMENT OF HUMAN RESOURCE MANAGEMENT
mREcroR 451 SOUTH STATE STREET.ROOM 404 PALMER OEPAULIS
SALT LAKE CITY,UTAH 84111 MAYOR
PROGRAM ADMINISTRATORS: (801) 535-7844
PATRICIA CAMPBELL.C.0 P.
FRANK FRASER •
JANE ERICKSON.A.R.M.
17 May 1989
W. M. "Willie" Stoler, Chair
Salt Lake City Council
451 South State, Suite 304 -
Salt Lake City, Utah 84111
Dear Council Member Stoler:
I am pleased to submit information pertaining to the Department of
Human Resources in preparation for the Council budget review
process.
I look forward to meeting with the Council on 25 May to formally
present this information in greater detail.
Thank you for your attention regarding this matter.
Sincerely,
Karen Suzuki-Hashimoto, Director
KSH/k
cc: Mayor DePaulis
attachments
OVERVIEW
DEPARTMENT OF HUMAN RESOURCE MANAGEMENT
History
Human Resource Management was elevated to department status in
October of 1988. As an change in Administrative Code, the Council
established the Department of Human Resource Management as a
separate department than its former designation as a division under
the Mayor's Office. The primary responsibilities of this
department is to provide traditional personnel services including,
but not limited to; employment, recruitment and selection,
classification, compensation, employee benefits, and other staffing
related functions. Additionally, governmental compliance
including, but not limited to; equal employment laws and
regulations, worker's compensation, unemployment insurance, and
other regulated activities. Labor and employee relations and staff
development and training programs are also provided by this
division.
The second component is the risk management function. We have
recently hired a Loss Control Specialist, and will soon recruit for
a Safety Coordinator for the City to comply with OSHA and EPA
requirements.
Maior Milestones
The first City-wide training needs assessment was completed this
year. Approximately 700 employees were surveyed as the base-line
information for the First-Line Supervisory Training Program. This
program held its first session on 11 May 1988 in the Public
Utilities Conference Room. There are 24 participants in this
program.
The Risk Management function was reorganized this year. The change
was to realign employee benefits under the classification and
compensation division. This is to provide closer a more accurate
profile and coordination of total compensation an employee
receives.
The Second Annual Mayor's Management Conference convened
approximately 150 of the City's management personnel. The theme
of this year's event was to "showcase" productivity successes in
the City.
Workload Measures
By way of illustration, the following measures are provided as an
example of information complied. This does not purport to be
comprehensive. From 1 July 1988 to April, 1989, the Department of
Human Resource Management provides the following information:
281 employees hired
44 job openings (full time)
300 seasonal employees hired
3,586 applications processed
60 classification audits conducted (approximate)
(does not include accounting audit)
21,860 papers processed in records area.
includes salary actions, leave
changes,terminations, etc.
10,000 computer entries
9,800 insurance requests
'POSITIONu DETAILT
a FY 1989-90
HUMAN RESOURCE MANAGEMENT
Mayor
Adopted Recommended Change from 1988-89
1988-89 1989-90 to 1989-90
OFFICE OF DIRECTOR
Director-Human Resources 003 1.00 0.90 .10 to Rick (Int. Sere. Fund)
Administrative Secretary II 312 1.00 1.00 Reclass from 219
Office Of Director
Division Total 2.00 1.90
PERSONNEL
Personnel Manager 326 1.00 1.00 Name changed from Personnel Dir.
Personnel Services Manager 323 1.00 0.60 .40 to Risk (Int. Serv. Fund)
Government Compliance Mgr. 323 1.00 1.00
Personnel Representative 319 4.00 4.00 Reclass from 317
Human Res. Info Center Spy. 312 1.00 1.00
Employee 6 Corporate Rel. Off. 312 1.00 1.00 Reclass from 314
Employment Supervisor 312 1.00 1.00 Reclass from 309
Office Technician I 216 1.00 1.00
Secretary II 216 1.00 1.00 Reclass from Pers. Tech. (220)
Clerk III 215 1.00 1.00 Reclass from 211
Clerk II 213 0.50 1.00 New position from .5 PT
Personnel Division Total 13.50 13.60
Risk Management
Director-Human Resources 003 0.10 From General Fund
Personnel Services Manager 323 0.40 From General Fund
Risk Manager 325 1.00 1.00
Loss Control Coordinator 319 1.00 1.00 Reclass from 318 •
Fleet Safety Train./Coordinator 317 1.00 1.00 Reclean from 314
Employee Benefits Suprv. 315 1.00 1.00 Reclass from 313
Il Worker Compensation Coordinator 312 1.00 1.00 Reclass from 220
Office Technician II 219 1.00 1.00 Reclass from Sec. I (213)
Office Technician I 216 1.00 New position-contractual S cut `
Secretary II 216 1.00 New position
Risk Management
Division Total 6.00 8.50
Human Resource Management 21.50 24.00 '
AeL„v. 56t.V.
e-C,
PROPOSED STAFFING CHANGES
The following staff changes were proposed and approved by the
Mayor, and are now presented to the City Council. All staffing
changes do not increase current funding levels.
Clerk II - This request is an .5 increase over the current level.
This position is in our records section. The current incumbent is
a half-time employee and our requests anticipates a change to one
full-time employee. There is currently a supervisor in this area.
The total complement would be 2 FTE's in the Records area.
Historically, this section has had 4 full-time personnel. As seen
in out "workload measure", this section processes 42,000 pieces of
data and/or paper. There is no additional funds required (budget
neutral). Funds will be derived from delay hiring.
Office Tech I - This position is requested to fill a position
previously occupied by a contract employee. He has since retired,
and this request represents a cost-savings from the funds used for
a contract employee. This position is in the Risk Management
Division. No additional dollars were allocated. Funds from the
contract employee are proposed to fund this position.
Secretary I - This original service level increase (budget neutral)
is being withdrawn. We propose that the Administrative Secretary
for the Department of Administrative Services which as been
budgeted be transferred to Human Resource Management. This position
would be in the Risk Management Division. This position will be
required to support the information regarding loss control, safety,
and other activities.
OTHER CHARGES AND SERVICES - GENERAL FUND
The following is an explanation of the section of the Department
of Human Resource Management's proposed budget listed as "Other
Charges and Services". This explanation is for the general fund
portion of the budget and is listed according to object code.
2314: Medical Fees - $45,475.00. This fund is used to pay
for such items as pre-employment physicals for
employees, pre-employment chemical testing for all new
hires, and ongoing physical examinations for employees
in the Police and Fire Departments.
2318: Public Relations - $23,200.00. This object code is
used for two items. The first item is payment of
$6,000.00 which goes towards Employee Appreciation
Day. The second item is a $17,000.00 payment from
this object code to the firm Raging Waters as payment
for admission of City employees to the Wild Wave
facilities during Employee Appreciation Day. The
amount of $17,000.00 was interdepartmental billed
from the various departments to the Department of
Human Resource Management and was placed in object
code 2550 which is documented later in this report.
2323: Civil Service Commission - $1,700.00. This amount is
used to pay the three Civil Service Commissioners for
their monthly meetings. This item is also used to pay
for the services of court recorders when required
during Civil Service hearings.
2328: Technical Services - $500.00. This account is utilized
to pay for the technical services of individuals in
such areas as researching specific statistical infor-
mation which is relevant to Human Resource Management.
2329: Other Professional & Technical Services - $2,000.00.
This object code is utilized when it is necessary to
enlist the service of an individual with professional
or technical expertise in the Human Resource Management
area. It has been used to compensate individuals for
performing such duties as specialized training
programs, presentations at workshops for City
employees, and in the conducting of specialized pro-
fessional services for the Department of Human
Resource Management.
2341: Office Equipment MCS - $3,000.00. This account is used
to pay for the maintenance agreements on the
department's copiers and typewriters.
2370: Printing Charges - $9,000.00. This amount is used to
fund the printing of the Official Rumor on a monthly
basis.
2371: Printing Public Notices - $2,200.00. Money from this
object code pays for weekly newspaper ads announcing
vacant positions with Salt Lake City Corporation. This
fund is also utilized for placing ads in various news-
papers during the recruitment process for entry level
Police Officers and Fire Fighters.
2506: Telephone Lease Expense - $14,897.00. This account
pays for the lease of telephone equipment in the
Department of Human Resource Management.
2513.02: Office Copier Rental - $1,872.00. This fund is used
for the rental of copiers or microfilming equipment
as needed.
2521: Meals - $200.00. This object code is used to pay for
the means of non-city employees who, during the course
of doing business with the staff of the Department of
Human Resource Management are required to dine out.
2522: Memberships - $600.00. This account pays for pro-
fessional memberships for individuals in the Department
of Human Resource Management. Examples of these
memberships include such things as The International
Personnel Management Association, The American Society
for Training and Development, and membership in The
American Compensation Association. -
2523: In City Conventions and Workshops - $645.00. This `
object code is used to pay for employee attendance to
the various conventions, training programs, and work-
shops which take place in the Salt Lake Valley during
the course of the year. These conventions and work-
shops would include such things as technical report
writing, time management, training and development
programs, recent developments in the human resources
field, and other related human resources topics.
2524: Mileage - $100.00. Employees are reimbursed from this
object code when it becomes necessary for them to
utilize their private vehicle for the purpose of
traveling to outlying departments in order to perform
their job.
2525: Out-of-Town Travel - $3,341.00. This account pays for
relevant conventions and workshops which take place
away from the Salt Lake City area. This amount will
usually pay for two Human Resource Management employees
to attend out-of-town workshops during the course of
the year on such topics as collective bargaining,
EEO/Affirmative Action, training and development, or
classification and compensation.
2527: Auto Allowance - $3,500.00. This amount is provided
to the Director of The Department of Human Resource
Management.
2529: Other Employee Costs - $10,400.00. This account is
used to pay for the various retiree gifts for former
employees and to pay for the Mayor's Award of
Excellence which is given to current employees.
2550: Refunds - (-$17,200.00). This account shows a surplus
because it was the object code in which the departments
placed their reimbursements for payment to Raging
Waters as part of Employee Appreciation Day. This item
is also referenced as part of object code 2318.
2590: Other Expenses - $200.00. This account is used to
cover the cost of non-predictable items which surface
during the course of operating such programs as the
Mayor's Christmas Party, Employee Appreciation Day, and
The Official Rumor.
2999: Interdepartmental Charges - (-$1,500.00). This object
code will be used for the Mayor's Gift Closet. When
items are given as gifts to various visiting
dignitaries the appropriate department will be billed
for the amount of the gift and that amount will be
placed in this object code.
GOVERNMENTAL IMMUNITY BUDGET OVERVIEW
In 1977 Commissioner Jennings Phillips, the Finance Department
Commissioner concluded that insurance premiums of $212,434 for auto
liability and $198, 000 for comprehensive liability were too high.-
He recommended, and the City Commission agreed to use the insurance
premium budget which totaled $410,434 as the first funding to
become self insured.
Off and on during the years, the City Attorney's office and Risk
Management have checked on premiums and found that Comprehensive
General Liability insurance for the City would have greatly
increased. In 1987, for example, coverage for $5, 000,000 with a
$1, 000 , 000 deductible would have cost $350, 000 to $450, 000 in
premium. To obtain a $250, 000 deductible or $500, 000 deductible
would have cost between $700, 000 to $900, 000. To date no claim
payment has exceeded $250, 000 making it clear that self insurance
has, in fact, been a cost effective method of insuring this
exposure.
CLAIM PAYMENT HISTORY (Cost Center 85-85000)
FY 77-78 $ 29 ,271
FY 78-79 55,978
FY 79-80 169,520
FY 80-81 229,838
FY 81-82 - 165,873
FY 82-83 163,518
FY 83-84 193 ,409
FY 84-85 187, 374
FY 85-86 153 ,981
FY 86-87 416,408
FY 87-88 244 ,500
Anticipated Current FY Expenditures
FY 88-89 $226, 611
From FY 81-82 through 87-88 no funding was provided for the
Governmental Immunity Trust Fund. Interest and allocations from.
the fund balance provided the only source of revenue. Consequently
the amounts in Governmental Immunity dropped_ from $2, 130, 244 to
$335, 411. In FY 88-89 the City Council approved an allocation of
$300, 000 to be placed in Governmental Immunity. The Mayor
recommend's an appropriation of $300, 000 for FY 89-90.
Reserved Amounts
Personal Injuries $313 ,000
Property Damage 199, 000
Total Reserve $512, 000
- Service Level Changes
None in the City Attorney' s office are anticipated. Risk
Management has hired a Loss Control Coordinator and will hire and
Safety Training officer in the near future but no funding for Risk
Management positions comes out of the Governmental Immunity Trust
Fund.
Major Policy Issue
The major policy issue has been and remains whether or not the fund
reserve is sufficient to pay anticipated claims. This budget
recommends funding that would most likely result in no change. The
$300, 000 appropriation would likely cover operating costs and
normal volume of claims.
OTHER CHARGES AND SERVICES-RISK MANAGEMENT INTERNAL SERVICE FUNDS
Following is an explanation of the "Other Charges and Services"
object codes for the Risk Management Division budget FY 89-90.
2318 Public Relations- $300. This object code is utilized to
process vouchers for business expenses incurred when
consultants visit or luncheon meetings are held.
2321 City Data Processing Services $26,283. This amount is
determined by IMS based on historical usage and programs
in operation.
2324 Special Consultant- $75, 000. Budgeted amounts include
$35, 000 for Rollins Burdick Hunter our insurance broker
and $40,000 for Employee Benefit Consultants. We have
increased the Employee Benefit budget by $20,000 due
to the cost of the federally imposed Section 89 non-
discrimination testing. The Broker budget has increased
by $5, 000 for additional loss control services which
are planned for 89-90.
2324 . 01 Counseling Service- $30,000. This line item pays for
the Employee Assistance Program offered through Human
Affairs Inc. The $4,000 increase is to cover July 1st
premium(rate) increases per employee. -
2329 Other Professional & Tech. Services- $500. This line
item is for unplanned and unexpected professional and
technical services.
2336. 02 Telephone-Long Distance- $1, 000. Where IMS charges us
for our long distance telephone call usage.
2340 Micro Computer Maintance Contracts- $4,090. Increases in
this line item are a result of our recent authorized
purchase of 3 personal computers and one laser printer.
2341 Office Equipment MC's- $1,000. An additional object code
to keep track of the costs associated with maintenance
of our copier and typewriters.
2371 Printing-Public Notices- $4,100. There is no increase in
this line item. We utilize many different types of
employee communications. This is where we pay for the
cost to print or prepare those employee communications for
both Risk Management and the Employee Benefits programs.
2394 Educational Training-$1,800. This line item decreased
due to the fact that the employee to whom I was paying
tuition aid will graduate in the fall. Additionally
I hope to send my employees to professional seminars
to ensure they are up to date on any changes in their
areas of expertise.
2506 Telephone Lease Expense-$4,970. This line item is
a quotation by IMS for lease of telephones. I do not
know the reason for the increase in this line item.
2522 Memberships- $3 ,800. The City belongs to the following
professional organizations. The UTAH HEALTH COST
MANAGEMENT FOUNDATION $3,000. The RISK AND INSURANCE
MANAGEMENT SOCIETY $250.00. The PUBLIC RISK AND INSUR-
ANCE MANAGEMENT ASSOCIATION $250.00 and the UTAH SAFETY
COUNCIL/NATIONAL SAFETY COUNCIL and IPMA $300. 00.
2523 In City Conventions and Workshops $800.00. This line
item is also used for sending Risk Mangement employees
to Worker' s Compensation seminars, Hazardous Materials
seminars, RIMS seminars, and IPMA seminars.
2525 Out of Town Travel $6,200. The increase in this line
item is for anticipated additional representation at the
annual RIMS seminar (next year in Boston) . Other travel
is to Seattle to negotiate insurance policy language with
underwriters and anticipated travel to meet with employee
benefit consultants.
2530 Retiree Premium-City Share $240, 000. The $96,000 increase
in this line item represents the cost we
estimate for the payment of 26% of the retiree premiums for
the next fiscal year.
2546 Claims and Damages-$204,233 . The bulk of this amount
($118,910) goes into a seperate trust account to pay for
property damages claims below the deductible, collision
losses for City autos and hazardous materials testing. The
other $85, 323 is for claims associated with various other
employee benefit programs.
2549 Risk Mangement Premium-$968,000. $400,000 is used for
payment of property premiums, bonds for public officials
and City employees. $69, 000 is paid to the Utah State
Tax Commission for being self insured for our Worker's
Compensation program. $499,000
2549. 04 FHP Premium-$904, 378. The City and employee share of
the premium for this health insurance option.
2549. 04 PEHP Premium $5, 689, 096. The City and employee share
of the premium for this health insurance option.
2549 .06 Healthwise Premium-$635, 409. The City and employee share
of the premium for this health insurance option.
2549 . 07 Other Premium-$1, 136,931. The City and employee share
of the premium for Retiree Health Insurance.
2559 Contingencies-$454 , 075. The amount represents charges
to all employees (current and retired) and the City share
for a subsidy to the retiree premiums for 89-90. Without
this subsidy the retiree insurance premium would have
increased by 80% based on this part of the groups
experience. Since we are all one group the subsidy
approach was adopted to preserve the retiree plan.
2565 Administrative Service Fee. The total amount for this
line item was placed in the object code 2921.01. The
amount of $76, 000 represents charges billed by Finance
for Administrative Services to the Risk Management
internal service fund.
•
I!
�•I.ri ;i
•LI ,
SALT :+,
woavrm��,.wrNyaa !zLTYC ytirzORPa ORaciAswTIONI
OFFICE:OF THE;CI.TY..COUNCIL
4111 1I;ii ;,SU_ITE'300. CITY HALL;
4.4,;324 SOUTH STATE STREET;.,
'_'SALT_y_AKE;CtTy,,,UTAH.:84'1.1-1
M
To: Willie Stol.er.
From: Linda Hamilton
Date: October 21, 1988
Re: City Employee Benefits
A couple of weeks ago you asked Lee to research the following questions.
1. What constitutes a fringe benefit? A fringe benefit is anything that
personally benefits employees, excluding salary.
2. What is the value of the City's fringe benefit package by classification
series. See attachment.
3. Do we send out a statement that lists the value of fringe benefits to .
each employee? The City has not provided employees with a statement of the
dollar value of their benefit package for several years.
The attachment identifies the dollar and percentage value of the City's
benefit package to a "typical" employee in each of the classification series.
The actual benefits of individual employees at comparable step levels were
used for the calculations. Calculations were based on the dollar value of
FICA, pension, family insurance, 12 holidays, 1.0 vacation days, and 15 sick
days. The calculations do not include incentives such as educational
allowances, certification pay or auto allowances or the fitness club benefit.
The data indicates the following value of benefits as a percentage of base
pay:
Executives 37. 94%
300 Series 36. 30%
200 Series 39.41%
100 series 39.56%
400 series 47. 25%
500 series 47.75%
I hope this information satisfies your needs.
cc: Lee King
SALARY AND BENEFIT COMPARISON
DESCRIPTION EXECUTIVE 300 200 100 400 500
PAY STEP 006 PERCENTAGE 322-M PERCENTAGE 224-M PERCENTAGE 124 PERCENTAGE 415-0 PERCENTAGE 517 PERCENTAGE
SALARY 45084.00 41808.00 28332.00 Z7912.00 30252.00 30936.00
FICA 3379.50 7.50 3139.78 7.51 2127.73 7.51 2096.19 7.51 0.00 0.00
PENSION 3606.72 8.00 3344.64 8.00 2266.56 8.00 2232.96 8.00 7248.38 23.96 7628.82 24.66
INSURANCE-FAMILY 3702.92 8.21 2740.40 6.55 2740.40 9.67 2740.40 9.82 2740.40 9.06 2740.40 8.86
SUB TOTAL 10689.14 23.71 9224.82 22.06 7134.69 25.18 7069.55 25.33 9988.78 33.02 10369.22 33.52
HOLIDAYS - 12 2080.80 4.62 1929.60 4.62 1307.52 4.61 1288.Z0 4.62 1396.20 4.62 1427.82 4.6Z
VACATION - 10 1734.00 3.85 1608.00 3.85 1089.60 3.85 1073.50 3.85 1163.54 3.85 1189.80 3.85
SICK LEAVE - 15 2601.00 5.77 2412.00 5.77 1634.40 5.77 1610.25 5.77 1745.25 5.77 1784.70 5.77
•
TOTAL BENEFITS 17104.94 37.94 15174.42 36.30 11,166.21 39.41 11041.50 39.56 14293.77 47.25 14771.54 47.75
THE ABOVE SALARIES DO NOT INCLUDE INCENTIVE ITEMS
LIKE AUTO ALLOWANCE, EDUCATION, OR CERTIFICATION
•
•
SAL?L?. r Gc-IITr ORPO" I.ONt
`'-" DEPARTMENT OF"FINANCE
3244'SOUTH STATESTREET, 5TH FLOOR
LANCE R. BATEMAN, CPA SALT LAKE CITY, UTAH•64111 .
PALMER DEPAULIS
DIRECTOR OF FINANCE • �z;;: MAYOR
_,-5 (80T)"535-7676
October 20, 1988
- Linda Hamilton
City Council
Re: Salaries and benefits
Dear Linda •
Attached you will find a salary and benefit comparison. It is
comparing an individual from each employment unit. You need to
understand that some of the percentages will change depending
upon the salary of the individual. The benefit dollar amount is
• fixed and the salary will change depending on the step in the
salary range. These salary amounts do not have extra pay,
incentive pay or certification pay in them.
The other item that was asked of us was if we send out any
statement to the employee on these benefits. We did send the
employee a statement on benefit about three years ago. That was
the last time that it was done.
Hope this is the information that you need. If you have any
questions please give me a call.
Sincerely,
Gordon Hoskins
Financial Manager
11-5,Cagin
OCT 21 RE
SALT LAKE CITY COUNCIL
-- - Fire Department
Council Staff Analysis
Prepared by Cam Caldwell
The proposed Fire Department budget is $17,662,473, or 5. 1% higher than the FY
88-89 budget . Forty-four positions have been transferred from the Police
Department to the Fire Department as part of the consolidation of the dispatch
function. Adjusting the budget based upon the $1 .351 million which represents
the cost of the forty-four transferred dispatch personnel, the budget for the
department is actually 3.0% less than the budget approved for FY 88-89.
Staffing Level
The actual staffing level of the department is 42.58 full-time equivalent
(FTE) positions more than last year. All forty-four dispatching positions
were allocated to the Fire Department staffing table. One Battalion Chief
position was eliminated, a part-time Accountant II position was made full-time
with-no change in FTE, a part-time secretary was reduced from 1 FTE to. .58
FTE, a full-time Secretary is proposed to assist in the administration of the
Hazardous Materials program, and a Fire Investigator position has been
eliminated in the FY 89-90 budget.
•
Revenue Increases •
The department_ has proposed that a currently vacant Fire Prevention Specialist
position be hired in January, 1990, to conduct additional Uniform Fire Code
inspections. The department estimates that a FiPe Prevention Specialist can
generate inspection revenue at the rate of at least $20,000 in the first year. '
The charge to the Salt Lake City International Airport for Aircraft Rescue
Fire Fighting will increase by $58,510, primarily to fund salary and wage
adjustments for the FY 89-90 fiscal year.
Service Level Increases
The hiring of a full-time Secretary for the Hazardous Materials program is the
only service level increase proposed by the department in the FY 89-90 budget.
Salt Lake City plays the lead role in the administration of the Local
Emergency Planning Committee (LEPC), established under a federal grant and
administered through the State of Utah. The purpose of this program is to
develop an emergency operation plan for hazardous materials incidents and to
keep record of businesses that store hazardous materials. Businesses are
required to report regarding hazardous materials stored at their facilities.
The Secretary is involved with record keeping and other clerical tasks for
this Committee. Salt Lake is an entire planning district within itself and
has been so designated by the Governor. The first year cost for this
secretarial position is $19, 196.
Budget Issues
A budget issue related to the Peat Marwick study is the question of whether to
charge the Fire Department for hydrant rental and water used in fighting
-2-
structural fires.. According to the consultant, there is no clear policy
nationwide as to whether to charge a Fire Department for these items. This
appears to be a policy choice of the City Council. Council may wish to
discuss this issue with the Public Utilities Advisory Committee and the Mayor
before taking formal action.
The department has requested $15,000 for brush coats to fight brush fires.
These coats are safety gear required to accommodate OSHA standards. The
question regarding the number of brush coats is whether to buy one coat per
fire fighter or enough coats for each engine company. The difference in cost
is about $11 ,000.
Policy Issues .
The Fire Department has indicated that it intends to undertake a study of the
feasibility of establishing user fees for recipients of the City's paramedic
services during the 89-90 fiscal year. Council had indicated some interest in
reviewing this issue. Although in most cases costs would be covered by third
party insurance, some Council Members have expressed concern that this- could
appear to place an unfair burden on low income people.
The department staffing level has been a concern to the Chief due to the
number of retirements in the past year. Currently the Fire Department has
twenty-four Fire Fighter vacancies. The department anticipates hiring a •
recruit class of twelve on September 1 , 1989, and another class of twelve by
April 1, 1990. :Currently the department requires a daily staffing level of
seventy-eight personnel to maintain all engine companies at four Fire Fighters
.per engine. They are now averaging seventy personnel per shift. When
Station No. 14 is complete Station No. 15 will close. The impact of that
closing will be to reduce the daily staffing level to seventy-four personnel.
• The department has projected revenue growth to average $2,500 per month by
January, 1990. The department position is that it intends to increase
inspection revenue by $20,000 per year, beginning in FY 90-91 . The estimated
revenue for the current fiscal year will be about $6,500.
The Fire Department has been working with the City Attorney's Office to
develop a proposed ordinance for charges to be imposed for negligently caused
fires. An ordinance is also being drafted to recover the costs associated
with hazardous materials incidents.
No monies have been budgeted by the department to hire a consultant to
evaluate the City's dispatch system, although the hiring of such a consultant
had been committed to in a policy meeting with the City Council which
occurred last fall.
The cross-training of Police and Fire Dispatchers is projected to take "a year
or more before a significant number of dispatchers will have the desired
expertise in both areas." The department opines that an estimate of dollar
savings available from consolidating dispatching cannot be realistically
projected without historical tracking of data. The department perceives that
the E911 program will "require at least ten ( 10) persons for adequate
support."
-3-
•
The Peat Marwick study has identified that the City is eligible to receive
reimbursement from the Airport for direct services provided by individual
departments. Structural fire fighting is an example of such a service for
which the City may be able to obtain reimbursement. The exact dollar amount
of structural fire fighting service provided to the Airport would have to be
determined and would have to be formally agreed upon after communication with ,
the Federal Aeronautics Administration regional offices. The determination to
request reimbursement for those costs is a policy issue which Council may wish
to discuss with the Airport Authority Board and the Mayor. At this point, it
is staff's understanding that the Council will- not act on issues related to
the Peat Marwick audit until it receives further information from the
Administration.
Staff Recommendation
1) Council may wish to increase department funding for a Fire
Prevention Specialist/Inspector to conduct Uniform Fire Code
inspections. The net financial impact of hiring this position •
would be to increase Uniform Fire Code inspections and associated
revenue.
2) Council may wish to reduce the funding of a secretary from
full-time to part-time to assist the Hazardous Materials program
at a saving to the City of about $9,500.
3) Council may wish to reduce the funding for brush coats from
$15,000 to $4,000.
4) Council may wish to establish a Legislative Intent requesting
r the Administration to complete a study of charges for paramedic
()1' and EMT services by a specific date, and to report back to the
f/� City Council in writing so that Council Can have the opportunity
to adequately review this issued in time -for implementation in FY
9
) C o
a 5) Council may wish to establish a Legislative Intent indicating
' `�° ' its continued intent to work with the Administration to evaluate
the Fire Department's consolidated dispatch operations. If it
supports this concept, it may also wish to fund a consultant for
that purpose at an estimated cost of $20,000.
-4-
•
Fire Department
Overview of the Piogran
The Salt Lake City Fire Department provides fire and emergency medical
response for a service area of 100 square miles. Although the city population
is about 170,000, daily carmutpr traffic increases the number of people served
by the Fire Department to nearly 300,000. Currently the department is
authorized 348 fire personnel, oarnprised of sworn and non-scorn employees.
The department has thirteen stations that operate thirteen engines, including
five paramedic engines and eight fire engines. The department also consists
of three ladder truck companies and a Hazardous Materials Unit. Eighteen fire
personnel and six paramedics are assigned to the Salt Lake International
Airport. Two Crash/Fire/Rescue Units, an all-terrain Oshkosh unit anda
paramedic squad make up the Airport equipment complement. The airport also has
t:elve firefighters assigned to a fire engine assigned to fight structural
fires.
In 1984 the Salt Lake Fire Department was listed as one of the top 25 fire
departments in the United States. The department's Emergency Medical System
received a national management innovation award that same year. In 1985
Firehouse Magazine named the department as one of a select yLoup of ten fire
departments to receive an award of excellence for cost effective management
while conLLulling fire loss. These accanplishments have been achieved during
a period in which the department has had to streamline its operations and
reduce staffing by more than 50 positions. Those cutbacks have reflected
nationwide changes in the fire service as it has been forced to find new ways
to provide cost effective emergency prevention and protection due to the
financial strain under which local governments have been forced to operate.
Prevention of fire is a key department activity. The Fire Prevention Bureau
is assisted by the engine companies in conducting inspections, coordinating
training i ng programs and deirnns LL dtions, and working with developers and
conLiactors during the initial planning of new buildings to ensure structural
safety and safety of interior occupants. Fire prevention is achieved by
effective building and fire code enforcement and public education about the
steps which can be taken to reducP the risk of fire.
In 1988, Salt Lake City incurred fire damage losses of an estimated
$4,358,288 with 62 related injuries and one (1) fatality. A total of 4,014
fire runs were made during the 1988 calendar year. The average response time
to fire calls was 3.4 minutes fiau the time the engine company is dispatched
to the time that it arrives on the fire scene. In 91% of the fire runs the
department was able to arrive on the scene within five minutes. The
department succeeded in containing structural fires to the roan of origin,
essentially saving the structure, in 80% of structure fire situations.
During this same period, paramedics and EMP's responded to 12,623 medical
service runs. About 14.7% of all emergency medical runs were for Lrdffic
accident injuries. The high percentage of emergency medical runs, compared to
all fire runs, is typical of fire departments across the country.
MAYOR'S PROPOSED FIRE DEPARTMENT FY 89/90 BUDGET
I . SERVICE LEVEL REDUCTIONS
A. Eliminating One Battalion Chief Position
The elimination of one Battalion Chief position has
directly impacted the District Manager position. At
the present time, one District Manager is assigned to
cover all thirteen ( 13 ) fire stations, where normally
this position would cover only six fire stations.
The present District Manager has been assigned the task
of implementing and managing the Target Hazard and Fire
Risk Analysis programs. The remaining tasks and
responsibilities have been assigned to the Emergency
Response Chief Officers who work twenty four (24) hour
shifts. This change, dividing the work between three
individuals rather than two, has resulted in a loss of
continuity between the three shifts, as well as
doubling the work load. for the Response Chief Officers.
In the past, the Response Chiefs were assigned to
manage fire fighting, medical services- and hazardous
materials functions on their respective shifts. With
the additional work load they are now responsible for
fire prevention activities, training functions,
facilities and equipment maintenance and other related
activities that would normally be assigned to the
District Managers. '
B. Fire Investigator
With the vacancy in this position, the Deputy Fire
Marshal has been assigned to supervise the
investigator work force. Assigning supervisory duties
to a management position has decreased. the manager ' s
available time for other duties such as planning,
program development and evaluation. As a result, the
effectiveness of the manager position has been
weakened.
Completion of assigned case load: Although the number
of investigations performed has remained constant, the
number of complaints, arrests and convictions has
increased over the past few years. This effectiveness
requires a greater amount of work per case, thereby
increasing the work load. The increased demand has
been met by prioritizing cases and simply dropping
some, and by diverting workers from inspection duties
to investigation duties from time to time.
-1-
•
Summary: The Investigator 318 level position has been
temporarily vacant, so the impact of losing the
position has already been felt. Investigation work
load has increased not because of more cases, but
because of more effective work (see chart) .
Incendiary Fires Adult Juvenile
Year Investigations Identified Arrests Arrests
1986 1383 204 7 9
1987 , 1276 176 11 21
1988 1398 162 17 48
To meet the increased work load with a decreased work
force, resources have been diverted from other duties.
Inspectors are assisting in investigation from time to
time, at the expense of inspection work. Some arson
cases are abandoned so that other cases may be worked.
Loss of this position will impact the Department' s
investigation program.
II. NEW REVENUE SOURCES
A. For Fiscal Year 1989/90, the Salt Lake City Fire
Department will contribute some new possible revenues
as well as increasing some current revenues to the
General Fund. The Airport reimbursement which provides
Aircraft Rescue Fire Fighting will increase by $58, 510,
primarily to fund the anticipated salary and wage
adjustments for the fiscal year.
New revenue for next fiscal year will come from
miscellaneous Fire Prevention fees related to fire code
enforcement and permits. The projected total from
this revenue source is $10,000 used to partially offset
one ( 1 ) entry level Fire Prevention Specialist
position. As progress from the collection of fees
increases, it is assumed in Fiscal Year 1990/91, the
revenue may double to $20,000, further assisting the
funding of a Fire Prevention Specialist position.
-2-
III. SERVICE LEVEL INCREASE
A. Brush Coats: $15, 000
As a result of last year' s brush fire season, we became
aware of a potentially dangerous situation occurring
with our wildland fire fighting operations. We found
that in trying to accommodate the 0.S.H.A. requirement
regarding personal safety equipment, we overlooked the
heat stress problems that occur during extended
wildland fires. Although we are well equipped to fight
structural fires, we were overextending our
fire fighters ' ability to operate at wildland fires
using the same safety gear. As a result, we had
several occasions where fire fighters were overcome by
heat and stress, requiring that they be removed from
the line for treatment.
To address this problem, we propose that we equip each
fire fighting unit with lightweight fire resistant
brush coats that will provide adequate lightweight
protection for our fire fighters during these
operations.
B. Personnel Alert Units: $9, 000
To bring our Department into compliance with
National Fire Protection Association Standard #1500
requires that we equip our on-duty fire fighters
with this device. The unit is designed to send a
signal any time the wearer remains motionless for
more than 30 seconds. This signal would prove
invaluable in locating personnel trapped or pinned
in the event of a structural collapse or if a fire
fighter were to become overcome by whatever means,
allowing us to locate and come to his/her aid
quickly.
Each self-contained breathing apparatus will be
equipped with this device and activated any time
the wearer enters a dangerous environment.
C. Secretary For Title III Program: $24, 000
The Title III Act for Hazardous Materials was mandated
by the Environmental Protection Agency (E.P.A. ) to 48
states in the Nation. In the State of Utah when Title
III was adopted, it has passed to all local
municipalities to administer this program. Because of
the volume of forms and documents required for this
program, the Fire Department needs one ( 1) additional
fire secretary to handle the basic duty requirements.
-3-
Listed below, under the direction of the Fire
Department' s Hazardous Materials Coordinator are the
following duties:
1. Monthly meeting of LEPC
A. Correspondence to members of committee
B. Taking, typing and distribution of minutes
of meeting
C. Preparation and posting of agenda
D. Maintaining meeting schedule
E. Point of contact for LEPC members
2. . Facility information
A. Correspondence to facilities
B. Meeting responsibilities minutes
C. Update department files
D. Distribute information to Haz. Mat. ,
R.T. , B.C. ' s, etc.
E. Maintain facility list
3 . Planning
A. Typing, copying and distribution of
plans
B. Updating
4. Community Right to Know
A. Maintenance of facility files for
community information
B. Provide for public access to files
C. Public notices
D. Public information
5. Salt Lake City Haz. Mat information
A. MSDS files
B. Track Haz. Mat. complaints
C. Meetings with Mayor' s Haz. Mat.
task force
D. Support of Haz. Mat. coordinator
IV. IMPACT OF SERVICES TO OPERATIONS BUREAU
A. Major construction at the Salt Lake International
Airport will hamper the Fire Department's (Engine
No. 11 ) ability to provide coverage to the
Northwest Quadrant of the City. With the move to
the new Fire Station No. 4 and the closing of the
University Fire Station on July 1, 1989, the Fire
Department Administration proposes that the structural
fire fighter personnel and equipment assigned to Fire
Station No. 11 be reassigned to Fire Station No. 9,
located in the International Center.
-4-
Security for Fire Station No. 9 has been 'a major
problem for the Fire Department. This facility
has been vacant for two years. We have
experienced numerous break-ins and the theft of
vital equipment and furnishings. Moving personnel
into this facility will enhance our ability to
provide medical and fire protection to the
Northwest Quadrant while not sacrificing services
to the Airport proper.
B. The Fire Department currently has twenty four ( 24)
vacancies for fire fighters. It is anticipated we
will hire a recruit class on September 1, 1989 to
fill twelve ( 12 ) of these vacancies.
Whatever additional vacancies occur due to the
Early Retirement Program will be funded out of the
remaining vacancies and the dollars should be made
up by April 1, 1990, when we will be able to hire
to fill the remaining vacancies.
V. MAJOR POLICY ISSUES
A. Fee For Medical (EMS ) Service
The Fire Department will undergo a study to
present to the Mayor and City Council regarding
the feasibility of establishing user fees .for
recipients utilizing the City's Paramedic
services.
It is estimated that 80% or more users of
municipal medical services have third party
insurance which would pay for these services. It
should be noted, however, that property owners are
presently paying through property taxes a .2945
mil levy to Salt Lake County for Paramedic
services. Salt Lake City receives no reimbursement
either in services or revenue from the County.
B. Department Manning
At the present time the Fire Department operation
staffing level consists of the following (Broken
down by position and shift) :
-5-
Manning Totals Per Platoon
"A" Platoon "B" Platoon "C" Platoon
Battalion Chief 1 Battalion Chief 1 Battalion Chief 1
Battalion Aide 1 Battalion Aide 1 Battalion Aide 1
Captains 12 Captains 14 Captains 12
Lieutenants 6 Lieutenants 6 Lieutenants 7
Engineers 13 Engineers 16 Engineers 16
Paramedics 15 Paramedics 15 Paramedics 14
Hazardous Mtls. Hazardous Mtls. Hazardous Mtls.
Specialist • 3 Specialist 3 Specialist 3
Aircraft Rescue Aircraft Rescue Aircraft Rescue
Fire fighter 6 Fire fighter 7 Fire fighter 7
Fire fighters 30 Fire fighters 27 _ Fire fighters 28
Paramedic Sch. 1 Paramedic Sch. 1 Paramedic Sch. 2
Totals 88 Totals 91 Totals 91
Total All Platoons
Battalion Chiefs 3 Hazardous Materials Specialist 9
Battalion Aides 3 Aircraft Rescue Fire Fighter 20
Captains 38 Fire Fighters 85
Lieutenants 19 Paramedic School 4
Engineers 45
Paramedics 44 . Total All Platoons 270
B. Department Manning Continued -
Presently we are operating the airport structural
fire fighting engine with a three man crew. No. 6
Company, located at 948 West 800 South, is
operating an Engine Company, Truck Company, and
Hazardous Materials Company at three members each.
In order to maintain all companies at four fire
fighters each requires a total daily count of
seventy eight ( 78 ) personnel. Currently we are
averaging about seventy ( 70) personnel per shift,
making it necessary to operate additional
companies three handed.
-6-
Our present policy is to constant man positions if
the daily personnel count falls to sixty eight
( 68 ) and to constant man paramedics when the
paramedic count drops to eight (8 ) .
Factors that can influence the daily count are:
Members attending - Paramedic School ( 6 month
duration)
Members attending - EMT School (8 week duration)
- Military Leave
- Compensatory Time
- Parental Leave
- Funeral Leave
- Subpoenaed Court Time
- Jury Duty
- Special Training Projects
- Requests for Emergency Leave
- Retirement
- Sick Leave
In order to accommodate vacation and holiday time,
it requires that a total of fourteen ( 14) members
be allowed time off each shift.
•
Station No. 15, located at the University of Utah,
is scheduled to close when construction at the new
Station No. 4, located at llth Avenue and M
street, is complete. This will free up an
additional four (4) fire fighters per shift.
D. Permit Fees
Projected revenue growth from permit fees has not
changed. Our goal is to increase revenue by
$20, 0.00. 00 each year, for three years commencing
FY 90/91 .
Effective April 1, 1989, the permit fee for
installation of underground storage tanks was
raised from $25.00 to $50.00. Also effective that
date, a permit for removal of underground storage
tanks was established, with a $50.00 inspection
fee. Work is continuing on a cooperative effort
with the State Fire Marshal ' s Office to regulate
L.P.G. dispensing, with a fee for service for this
-7-
inspection. Rules and Regulations for aircraft
refueling permits have been written, and
implementation of this permit should be completed
by July 1, 1989. Preliminary contacts with the
hazardous materials team have been established,
with the intention of developing a hazardous
material inspection program and an associated
permit. The target date for initiation of
hazardous material permits is October 1, 1989 .
There are no immediate plans to implement further
permits, but prioritization and planning
continues.
•
There has been a slight increase in Fire
Prevention Bureau revenue from the changes in
flammable liquid permit. With the implementation
of aircraft refueling and hazardous materials
permits, revenue should average $2, 500.00 per
month ( $30, 000.00 per year) by January, 1990.
Fire Prevention revenue for 1989 is listed below
by month:
Month Amount Year
January $850.00 $ 850.00
February $245.00 $1, 075.00
March $970.32 $2, 045.32
April $700.00 $2, 745.32
E. High Risk and False Alarm Calls
The Council has a proposed Ordinance for charges
to be imposed for negligently caused fires. This
department proposes to narrow the parameters of
this charge through department policy to fires
caused by deliberate acts and fires where
violation notices of fire codes or other City
codes or ordinances have been issued and
compliance has not occurred in a timely manner and
the cited violation either causes or contributes
to the fire.
We also have a draft ordinance for the cost
recovery of hazardous material incidents which
will be defined through department policy.
-8-
VI. DISCUSSION OF OTHER ISSUES
A. Development Analysis Public Safety Communications
Past practice has been to operate Police and Fire
Department dispatching separately with separate
management and from the individual department' s
budgets.
Police dispatch most recently employed forty (40)
dispatchers and call takers. The operation was
supervised by four (4) supervisors working
rotating shifts. Supervisors from the Records
Section of the Police Department would step in to
pick up the slack when the regular dispatch
supervisors were not available. (Four is not a
sufficient number to provide 24 hour coverage,
seven days a week. ) The senior dispatcher on
duty was also given this responsibility from time
to time.
Fire Department dispatch has employed fourteen
( 14) dispatchers and four supervisors. Again it
was necessary to give the senior person on duty
supervisory responsibility from time to time.
Since moving the two dispatch systems to common
quarters, groundwork has been laid to eliminate
duplication of effort and unnecessary redundancy.
As of July 1, 1989, the budgets and management of
both dispatch areas will be combined under the
Fire Department Communication Division. Dispatch
supervisors are being cross trained to oversee
Fire Department and Police dispatching at the
same time. Once accomplished, this will reduce
the total number of supervisors from eight to
six, five to rotate supervisory shifts and the
sixth to act as administrative assistant. The .
administrative assistant' s main duties would be to
coordinate training, provide technical support
for the Computer Aided Dispatch system, maintain
training records, and fill in as line supervisor
as needed.
7r oss training of Police and Fire Departmentpatcers willbeginby July1989 . We feel
1, l
that cross trained dispatchers will be able to fill
in for each other on a temporary basis and thereby
reduce occasions where overtime must be paid for
proper coverage.
-9-
Because the number that can be in cross training
at one time is limited, it will be a year or more
before a significant number of dispatchers will
have the desired expertise in both areas. A
dollar amount of savings generated by cross
trained coverage cannot be realistically
projected until some comparative history is
experienced.
In combining Police and Fire Department dispatch
offices under single management, the Police
Department will transfer $1,350, 955 into what we
will call Public Safety Communications. This is
the amount identified as required to support
Police dispatch function in the past. Central
Fire Dispatch has budgeted $337,926 for Fiscal
Year 1988/89 for a total of $1, 675, 057 to support
both areas.
By June 1, 1989, E911 for Salt Lake City will
become a function of Public Safety
• Communications. That function as viewed
separately will require at least ten ( 10 ) persons
for adequate support.
The ten ( 10 ) people needed for the E911
function will be derived from reductions in
dispatchers and call takers. As we will no
longer be dispatching for other cities, the
personnel reductions are imminent.
Since dispatch and communications are essential
components to the delivery of public safety
services, arbitrary short cuts should not be
addressed. Any further cuts in personnel should
be done very carefully as the new system is
observed and analyzed.
B. Number 4 and Number 10 Stations
Construction of a new Number 4 Fire Station,
after much delay, is now progressing with a
target date of July 1, 1989 for completion.
Plans for relocating and construction of No. 10
Fire Station is now on hold, awaiting a decision
as to the new site. Several sites are now under
consideration. Preliminary design plans have
been completed, but further action in this phase
is also on hold awaiting the site selection.
-10-
Salt Lake City Fire Department
F.Y. 1989/90
Detailed Line-Item Description
Revised Date: 5/19/89
Object Code Object Description 89/90
Requested
2315 Graphic Design $ 6, 699
Outside printing expenses
for fire department or
purchase of printing supplies
reimbursed back to Police or
Developmental Services printing
shop
2321 City Data Processiong Services $123, 497
Annual budget for monthly payments
to City IMS department to provide
maintenance services, support, and
maintenance of fire systems
2321.01 Data Processing Service Outside $ 41,000
Fire department' s portion of
annual lease payments for new
software program to CAD (Computer
Aided Dispatch) system.
- 2325 Chemical Analysis $ 175
Funds used by Fire Prevention '
Division for outside professional •
analysis of fire evidence
2326 Examination fees $ 5, 222
Line item used for following:
(a) Medical services -
Paramedic and EMT recertification
fees
(b) Fire Prevention fees used for
ICBO certification fees and for
outside expert engineers to assist
fire investigations when needed.
(c) Public Safety Dispatch fees for
payment of recertification as EMD
(Emergency Medical Dispatcher) .
2329 Other Professional and Technical
Services $ 16 .220
Line item used for:
(a) Communications shop - test
equipment calibration and repair,
video and emergency generator
maintenance.
(b) Vehicle and Apparatus Services
annual contract with hourly employees
to assist with apparatus and vehicle
services section.
2331 Electrical Power $105, 772
• •
Annual budget for monthly payments
of electrical power to U P and L
for fire stations.
2332.01 Natural Gas $ 40, 631
Annual budget for monthly payments
of natural gas to Mountain Fuel
Supply for fire stations.
2333 Water $146, 840
Annual budget for bi-monthly payments
to Public Utilities Department for-
water and sewer at fire stations,
and flat water fee for fire fighting.
2336.02 Long Distance $ 4,438
Long distance telephone calls made
by department during fiscal year.
2336.05 Telephone Emergency Circuits $ 8,000
Fund lease payments of emergency
radio control and telephone lines.
2336.07 Telephone - Radio Circuits $ 39, 284
Annual budget for monthly payments
to Mountain Bell of ring-down lines
and radio circuits used by department
2336.09 Other Communication Expense $ 209
Annual maintenance associatated with
dispatch consoles of telephone
equipment. •
2340 Microcomputer Maintenance Contracts $ 6, 854
Annual budget for monthly payments
to City IMS for all department
microcomputer hardware on maintenance
contracts
2341 Office Equipment Maint. Contracts $ 9, 103
Annual maintenance contracts for
photocopy machines, typewriters,
dictaphone equipment and other office
equipment.
2342 Communication Equipment Maintenance
Contracts $ 3, 881
Annual communication equipment
contracts for CAD system maintenance
2347 Building Maintenance Contracts $ 4, 690
Annual budget to pay for water
softener service and cleaning of
fire stations.
2351 Office Equipment Maintenance $ 4, 000
Transfer in from Police Dept. General
Fund, Communications Center to cover
maintenance items not covered by
dispatch contract. -
•
2356 `.Alarm System Maintenance Repairs $ 1, 750
Annual maintenance for UPS
;(Uninterrupted Power System) Units, •
and maintenance and repair of cables
2358.01 'Street Repair $ 1, 520
Asphalt and concrete cutting services, -
excavation and resurfacing for
electrical and cable installations.
2390 Fleet Management Services $372, 879
Annual budget for monthly payments to
City Fleet Management Department for
all department fire vehicle and
apparatus repairs and 'maintenance.
2394 'Educational Training $ 1, 405
Training provided for department
employees to attend classes
(See attached travel forms. )
2399 Other Contractual Services $ 10, 641
-Medical equipment maintenance
contracts to IWC for paramedic
defribilators and monitors
2506 Telephone Lease Expense $ 80, 378
Annual budget for monthly payments
to City' s Telecommunications Office
for telephone equipment in Public
Safety Building and Fire Stations.
2521 Meals $ 800
Employee reimbursement department-
ally for luncheons with groups such
as Kiwanis, Lions, A.S.P.A. , etc.
2522 Memberships $ 3,302
Departmental memberships for division
and section managers in related areas.
(See attached membership forms. )
2523 In-City Conventions and Workshops $ 5, 117
Job-related conventions, workshops,
and seminars for department employees
• • during fiscal year.
(See attached travel forms. )
2524 Mileage $ 2, 284
Mileage allowance for eligible
employees using their personal
vehicle for department business.
Examples are: Paramedic candidates
attending Weber State College,
traveling back and forth for in-station
training; fire combat employees
transferring from one fire station to
another during 'working hours.
2525 Out of Town Travel $ 27, 779
Travel expenditure funds for
department members to attend out-
of-state, job-related conferences
and seminars. (See attached travel
forms. )
2527 Auto Allowance $ 10, 188
Annual budget for paid monthly auto
• allowance to eligible employees.
Listed as follows:
Fire Chief •and Chief Deputy
@ $300/mo.
Battalion Chiefs not using City
fire vehicles @ $150/mo.
2549 Risk Management Premium $140, 656
Annual budget •determined by City
Risk Management for premiium
payments.
2549.01 Worker's Compensation Premium $145, 000
Annual budget to pay industrial
accident premiums during fiscal
year as determined by City Risk
Management.
2549.02 Unemployment Compensation Premium $ 1, 500
Premiums paid to City Risk Management
for unemployment compensation funds
used by department.
2580 Contributions $ 16, 700
One-time payment by department to
Valley-wide Arson Task Force as
Salt Lake City' s contribution to
program. Other cities contribute
based on formula.
2590 Other Expenses $ 3, 294
• Expenses for unexpected or non-
budgeted items that occur during
fiscal year. Examples are: Employee
Appreciation Day, Mayor' s Conference,
etc.
May 25, 1989
Mayor Palmer DePaulis
Salt Lake City Hall
324 South State Street
Salt Lake City, Utah 84111
Dear Mayor DePaulis:
The Fire Station Committee met on Wednesday evening, May 24 as a part of
the process which has continued for over 10 months in an effort to find a
suitable location for an east side. fire station. As you may be aware, we have
had frequent meetings over the past few weeks. We submit our revised
conclusions to you, knowing that a Fire Station 10 is funded this year as part
of the recommended budget.
First, our committee voted unanimously that any site west of Foothill
Drive would be unacceptable since adequate fire protection could not be
offered to the neighbors to the east. Therefore, a proposed site in Sunnyside
Park is:unacceptable to the Committee.
After considering 10 sites, these are the three potential sites for the
new station:
1. The University of Utah Research Park land located at Komas Drive,
north and west of the Post Office. This land is available but the University
has indicated they would charge the going rate, which would be $18,000 a year.
We think there may be some room for negotiation with the University of Utah.
2. A site on Arapeen Drive just north of the Post Office, which would
require we obtain one and a half acres of U.S. Bureau of Mines land. We have
a commitment from the Director of the Bureau of Mines office in Salt Lake
City, and he has recommended that the Bureau of Mines in Washington grant the
City this land. We have recently received a letter from the U.S. Bureau of
Mines which denies our initial request, but we have contacted Senator Hatch's
and Congressman Owens' offices to request they lobby for us in this effort.
They have agreed, but the time frame for this effort could be several months.
3. Another choice is property owned by the City in the eastern part of
the parking lot at Hogle Zoo. The City's Property Management staff is working
with the zoo to see if this land could be obtained with no appreciable impact
to the zoo.
The University of Utah Research Park site is the only one which could
likely be obtained in time to begin construction July 1. If that site proves
to be unacceptable to you or the Council, our group will continue to work on
the acquisition of one of the other two sites. We know that Station 15 at the
University of Utah will be closed July 1 and this will compromise our fire
protection.
Mayor Palmer DePaulis
Fire Station
Page 2
If the City can't proceed with construction July 1, 1989, on the Research
Park site, we believe that continued operation of existing station 10 would be
acceptable until a new site can be obtained and construction begun by July 1,
1990, or sooner if possible. We strongly urge the continued commitment to
construction of a new consolidated station, but would be willing to work with
the City on a schedule that would accommodate the site acquisition and the
City's budget constraints.
In summary, we are willing to continue to work with the Mayor's Office
and Council Member Roselyn Kirk in this fashion, with the understanding that
the Mayor and Council continue to be committed to the construction of the
station. As you are aware, our 20 member committee has spent a significant
amount of time working to find a site that best fills the needs of the
neighborhoods and the City. We appreciate your continued commitment to this
process.
Sincerely,
ames Byrne
Committee Chairperson •
cc: City Council Members •
Fire Station Committee Members
Statement to Salt Lake School Board - February 7, 1989
Council President Willie Stoler
It is a pleasure to represent the City Council in coming before you this
evening. I am here to convey the commitment of the Salt Lake City Council and
Salt Lake City Government to this proposed $2. 1 Million Steiner swimming pool
complex.
The City Council and the private community group which has raised
private funding for this project have developed a set of project assumptions
which I would like to share with you tonight. These assumptions include the
following:
1) The City will play a lead role in the gathering of funds and in
overseeing the construction financing for this project.
2) The School District shall retain the right of first rental of
the Steiner Pool Complex at a special rate for school teams,
continuing education, and other legitimate school purposes.
3) An Administrative Board shall be established by Interlocal
Agreement which shall have legislative and executive
responsibility for the ongoing administration and operation of the
Steiner complex. This shall -be a seven member board with two
members appointed by the City and the School Board, and three
members appointed by the private community.
4) -The City will provide the impetus to create a Voluntary
Assessment District, assuming that such a district can
realistically be established to serve this facility.
5) It shall be specifically formalized in the Interlocal Agreement
that the City and the School District shall not be responsible for
the ongoing operation and maintenance of the Steiner complex once
construction has been completed.
6) The City and the School District shall retain their respective
right to determine how they would like to finance their $700,000
commitment to the construction of the Sunnyside complex. It is
understood, however, that the financing commitment of both
entities shall be paid for over a time period of no longer than
ten years.
7) The total capital cost of the Steiner complex shall be an
amount not to exceed $2.1 million. The amount funded by the City,
the School District, and the private community shall not exceed
$700,000 each. Funding shall be shared equally by these three
entities.
This project is an outstanding example of the establishment of a
public/private partnership to meet a well documented community need. On
behalf of the City Council, I invite the Salt Lake School District to become
full participants in the development of this project.
•
•
•
-2-
SAL?£ Imo METNORPORATIONE
OFFICE OF, THE CITY,,COUNCIL
SUITE 300,CCITY HALL •
324 SOUTH STATEESTREET_
'SALT_L-AKE-CITY:=UTAH 8411 f`
-535-7600 --"
May 25 1989
MEMORANDUM
TO: Council Members
FROM: Lee King
RE: Sunnyside Recreation Bonding Costs
Attached are two scenarios, one prepared by Kimball Young and one by the
City's Financial Advisor, for financing the $450,000 that is Salt Lake City's
remaining share of funding for the Sunnyside Recreation Center.
The first scenario is for five years. To borrow $450,000 would cost
between $553,000 and $570,000. This amount includes the cost of issuance, and
principal and interest payments.
The second scenario is for 10 years. To borrow $450,000 over this
period would cost between $655,000 and $677,350.
If the City contributed the full $450,000 as a lump sum we save between
$103,000 and $227,000, depending on the exact structure of the final debt
service 'package.
CC: Cindy Gust-Jenson
S470,000
Salt Lake City, Utah, Lease Revenue Bonds
Recreation Center Project
DEBT SERVICE SCHEDULE
DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL
2/ 1/90 16,450.00 16,450.00 16,450.00
8/ 1/90 80,000.00 7.000000 16,450.00 96,450.00 -
2/ 1/91 13,650.08 13,650.00 110,100.00
8/ 1/91 85,000.00 7.000000 13,650.00 98,650.00
2/ 1/92 10,675.00 10,675.00 109,325.00
8/ 1/92. 95,000.00 7.000000 10,675.00 105,675.00
2/ 1/93 ' 7,350.00 7,350.00 113,025.00
8/ 1/93 100,000.00 7.000000 7,350.00 107,350.00
2/ 1/94 - 3,850.00 3,850.00 111,200.00
8/ 1/94 110,000.00 7.000000 3,850.00 113,850.00
2/ 1/95 113,850.00
470,000.00 103,950.00 573,950.00
ACCRUED
470,000.00 103,950.00 573,950.00
DATED 8/ 1/89 WITH DELIVERY OF 8/ 1/89 •
BOND YEARS 1,485.000
AVERAGE COUPON 7.000
AVERAGE LIFE 3.160
N I C % 7.000000 % USING 100.0000000
T I C % 7.000000 % From Delivery Date
Ehrlich Bober & Co. Inc. Salt Lake City, Utah
$470,000
Salt Lake City, Utah, Lease Revenue Bonds
Recreation Center Project
SOURCES AND USES OF FUNDS
DELIVERY DATE: 8/ 1/89
SOURCES
PAR AMOUNT OF BONDS $470,000.00
+PREMIUM /-DISCOUNT $0.00
BOND PROCEEDS 470,000.00
•
$470,000.00
USES OF FUNDS •
PROJECT COSTS 450,000.00
PLACEMENT FEE 5,000.00
BOND COUNSEL 5,000.00
UNDERWRITER COUNSEL
OTHER COSTS OF ISSUANCE 7,000.00
CONTINGENCY .3,000.00
$470,000.00
Ehrlich Bober & Co. Inc. Salt Lake City, Utah
$470,000
Salt Lake City, Utah, Lease Revenue Bonds
Recreation Center Project
DEBT SERVICE SCHEDULE
DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL
2/ 1/90 17,037.50 17,037.50 17,037.50
8/ 1/90 35,000.00 7.250000 17,037.50 52,037.50
2/ 1/91 15,768.75 15,768.75 67,806.25
8/ 1/91 35,000.00 7.250000 15,768.75 50,768.75
2/ 1/92 14,500.00 14,500.00 65,268.75
8/ 1/92. . 40,000.00 7.250000 14,500.00 54,500.00
2/ 1/93 13,050.00 13,050.00 67,550.00
8/ 1/93 40,000.00 7.250000 13,050.00 53,050.00
2/ 1/94 11,600.00 11,600.00 64,650.00
8/ 1/94 45,000.00 7.250000 11,600.00 56,600.00
• 2/ 1/95 9,968.75 9,968.75 66,568.75
8/ 1/95 45,000.00 7.250000 9,968.75 54,968.75
2/ 1/96 8,337.50 8,337.50 63,306.25
8/ 1/96 50,000.00 7.250000 8,337.50 58,337.50
2/ 1/97 6,525.00 6,525.00 64,862.50 '
8/ 1/97 55,000.00 7.250000 6,525.00 61,525.00
2/ 1/98 4,531.25 4,531.25 66,05.6.25
8/ 1/98 60,000.00 7.250000 4,531.25 64,531.25
2/ 1/99 2,356.25 2,356.25 66,887.50
8/ 1/99 65,000.00 7.250000 2,356.25 67,356.25
2/ 1/ 0 67,356.25
470,000.00 ' 207,350.00 677,350.00
ACCRUED
470,000.00 207,350.00 677,350.00
DATED 8/ 1/89 WITH DELIVERY OF 8/ 1/89
BOND YEARS 2,860.000
AVERAGE COUPON 7.250
AVERAGE LIFE 6.085
N I C % 7.250000 % USING 100.0000000
T I C % 7.250000 % From Delivery Date
Ehrlich Bober & Co. Inc. Salt Lake City, Utah
S470,000
Salt Lake City, Utah, Lease Revenue Bonds
Recreation Center Project
SOURCES AND USES OF FUNDS
DELIVERY DATE: 8/ 1/89
SOURCES
PAR AMOUNT OF BONDS S470,000.00
+PREMIUM /-DISCOUNT $0.00
BOND PROCEEDS 470,000.00
S470,000.00
USES OF FUNDS
PROJECT COSTS 450,000.00
PLACEMENT FEE 5,000.00
BOND COUNSEL 5,000.00
UNDERWRITER COUNSEL
OTHER COSTS OF ISSUANCE 7,000.00
CONTINGENCY 3,000.00
S470,000.00
Ehrlich Bober & Co. Inc. Salt Lake City,'Utah
Boettcher&Company
STEINER AQUATIC CENTER
Lease Purchase Tax Exempt Financing
Five Year Plan
DEBT SERVICE SCHEDULE
DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL
1/ 1/90 80,000'.00 7.200000 16,740.00 96,740.00 96,740.00
7/ 1/90 13,860.00 13,860.00
1/ 1/91 85,000.00 7.200000 13,860.00 98,860.00 112,720.00
7/ 1/91 10,800.00 10,800.00
1/ 1/92 95,000.00 7.200000 10,800.00 105;800.00 116,600.00
7/ 1/92 7,380.00 7,380.00
1/ 1/93 100,000.00 7.200000 7,380.00 107,380.00 114,760.00
7/ 1/93 3,780.00 3,780.00
1/ 1/94 105,000.00 7.200000 3,780.00 108,780.00 112,560.00
465,000.00 88,380.00 553,380.00
ACCRUED
465,000.00 88,380.00 553,380.00
Dated 7/ 1/89 with Delivery of 7/ 1/89
Bond Years 1,227.500
Average Coupon 7.200000
Average Life 2.639785
N I C % 7.200000 % Using 100.0000000
T I C % 7.200000 % From Delivery Date
•
700'390d Hdlfl 018 ?J3HD11308 W0N3 15:7I 68. P2 AHW
Boettcher&Company
•
.STEINER AQUATIC CENTER
Lease Purchase Tax Exempt Financing
Five Year Plan
------------- ---------
SOURCES AND USES OF FUNDS
DELIVERY DATE: 7/ 1/89
•
SOURCES
_==.==
PAR AMOUNT OF BONDS S465,000.00
+PREMIUM /--DISCOUNT $0.00
BOND PROCEEDS 465 ,000 .00
$465 ,000.00
•
•
•
• USES OF FUNDS
•
PAR AMOUNT 450,000.00
Costs of Issuance 15 ,000.00
CONTINGENCY 0.00
$465,000.00
•
nnn 1Y1u 1 UU 1 rl ^11C \1111•1 1 1 1r.rt ..r. . . .... _ .... ....
Boettcher&Company
STEINER AQUATIC CENTER
Lease Purchase Tax Exempt Financing
Ten Year Plan
DEBT .SERVICE SCHEDULE
DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL
1/ 1/90 35,000.00 7 .375000 17,146.88 52,146.88 52,146.88
7/ 1/90 15,856.25 15,856.25
1/ 1/91 35,000.00 7.375000 15,856.25 50,856.25 66 ,712.50
7/ 1/91 14,565.63 14,565.63
1/ 1/92 40,000.00 7 .375000 14,565.63 54,565 .63 69 ,131.25
7/ 1/92 13,090.63 13,090.63
1/ 1/93 40,000.00 7 .375000 13,090.63 53,090.63 66, 181.25
7/ 1/93 11,615.63 11,615.63
1/ 1/94 45,000.00 7 .375000 11,615.63 56,615.63 68,.231 .25.
7/ 1/94 9,956.25 9,956.25
1/ 1/95 45,000.00 7.375000 9,956.25 54,956.25 64,912.50
7/ 1/95 8,296.88 8 ,296.88
1/ 1/96 50,000.00 7 . 375000 8,296.88 58,296.88 66,593.75
7/ 1/96 6,453.13 6,453.13
1/ 1/97 55,000.00 7.375000 6,453.13 61,453.13 67,906.25
7/ 1/97 4,425.00 4,425.00
1/ 1/98 60,000.00 7.375000 4,425.00' 64,425.00 68,850.00
7/ 1/98 2,212.50 2,212.50
1/ 1/99 60,000.00 7 .375000 2,212.50 62,212.50 64,425.00
465,000.00 190,090.63 655,090.63
ACCRUED
465,000.00 190,090.63 655,090.63 Dated 7/ 1/89 with Delivery of . 7/ 1/89
Bond Years 2,577 . 500
Average Coupon 7.375000
Average Life 5. 543011
N 1 C % 7.375000 % Using 100.0000000
T I C % 7 .375000 % From Delivery Date
?CiGi ' Ertl t J uu n ^ nc v�u^ i i inn i in. . .
Boettcher&Company
STEINER AQUATIC CENTER
Lease Purchase Tax Exempt Financing
Ten Year Plan
SOURCES AND USES OP FUNDS
DELIVERY DATE: 7/ 1/89
SOURCES
PAR AMOUNT OF BONDS $465,000.00
+PREMIUM /-DISCOUNT $0.00
BOND PROCEEDS 465,000.00
$465,000.00
•
USES OF FUNDS
PAR AMOUNT 450,000.00
Costs of Issuance 15,000.00
CONTINGENCY 0.00
$465,000.00
Uuln nne v,u,l innn inn i en s• nn ��