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HomeMy WebLinkAboutBudget memo and attachments, final Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Administrative Services Director SUBJECT: Presentation of the FY2013-2014 City Manager’s Recommended Budget MEETING DATE: May 13, 2013 AGENDA ITEM TYPE: Presentation/Discussion RECOMMENDATION: Listen to presentation, ask questions, and provide comments. BACKGROUND: This presentation will outline the FY2013-2014 (FY14) City Manager’s (CM) Recommended Budget, on a “large scale” view. We will be getting into further details over the next weeks, with Final Adoption scheduled for July 1, 2013. Following are the tentatively schedule dates of budget discussions, along with their topics: May 13: City Manager’s Recommended Budget, overall June 3: Tax Increment District and Business Improvement District Workplans and Budgets June 10: General Fund June 17: Special Revenue Funds Enterprise Funds June 24: Place holder – nothing scheduled, additional discussion if necessary July 1: Final Budget Hearing, Appropriation Resolution Hearing. Attached to this memo is a copy of the Budget Message, which is included in the document itself. It is a general summary of the budget and its implications for citizens and property owners. The entire “FY2013-2014 City Manager’s Recommended Budget” document is available online at http://www.bozeman.net/Business/Budgets-and-Financials. Copies are also available to the public at the Bozeman Library and City Clerk’s office. UNRESOLVED ISSUES: Because this is the beginning of the formal budget process, there are many unresolved issues. We will be identifying and discussing those during this presentation and the budget workshops and hearings in May and June. ALTERNATIVES: If the Commission would like to make suggestions for changes to the planned Budget Work Sessions, please do so tonight. FISCAL EFFECTS: This presentation has no immediate fiscal effects. The adoption of the final budget in June will have far-reaching fiscal effects. The Recommended Budget has the following impacts on the Typical Resident: Typical Resident: Assessment/Charge CM Rec Budget Street Assessments $12.52 Forestry Assessments - Property Taxes $45.00 Water Services $14.40 Sewer Services $15.84 Storm Water Services $0.96 Annual Increase $88.72 Monthly Increase $7.39 The details surrounding these increases will be discussed in detail through the budget adoption process. ALTERNATIVES: As suggested by the City Commission. Report compiled on: May 9, 2013 Document on File: City Manager’s Recommended Budget for Fiscal Year 2013-2014 Attached Documents: Budget Message (excerpt from Budget Document) CITY MANAGER’S BUDGET MESSAGE ___________________________________________________________ May 13, 2013 Bozeman City Commission: I am pleased to present the City Manager’s Recommended Budget for Fiscal Year 2013- 2014 (FY14). This past year has seen significant leadership and organizational change for the City. In a time with consistency among our elected leaders on the Commission, our staff has added many new faces in key management roles: • Director of Parks & Recreation • Director of Public Works • Community Development Director • Information Technology Manager • Human Resources Manager • Water Reclamation Facility Superintendent • Development Review Manager We are excited about the talented people we’ve been able to recruit. With such a significant number of new faces on our team in the past year, our strategy to move forward includes: 1. Take advantage of opportunities to better organize departments and divisions across the various functions of services we provide; and, 2. Improve On-Boarding for new Directors and Managers; and, 3. Take time to develop the Executive Team (City Manager, Assistant City Manager & Directors); and, 4. Focus efforts on training supervisors, many of whom haven’t supervised before or haven’t been in a supervisory role at the City of Bozeman. Commission Goals and the Recommended Budget The City Commission recently updated its priorities for the coming months. Below we have described the priority and how this Recommended Budget addresses the item: 2013 – 2014 Adopted Priorities 1. Diversify the local economy and support the creation and expansion of mid to high paying jobs. Recommended Budget: The budget includes over $330,000 for economic development efforts, including an additional staff person and funds for marketing. 2. Implement the 2012 parks & trails bond to expand the capacity of our parks, trails and open spaces. City Of Bozeman 9 FY14 CM Recommended Budget Recommended Budget: We have budgeted for spending $5 Million from the new Park Bond Construction Fund. It is anticipated that these General Obligation Bonds will be sold in the summer of 2013, with funds available for park-land and trail purchase immediately afterwards. If the bonds are sold prior to August, the first tax levy will occur this fall, with an estimated 4.12 mill increase for Park Bond Debt Service. 3. Implement reform of the community development system with an enhanced focus on customer service. Recommended Budget: The coming year will see the Building Inspection, Development Review, and Long Range Planning divisions working together under the Department of Community Development. Software improvements to our Sungard software system are expected to improve customer service across these divisions. 4. Enhance Downtown Development Opportunities Recommended Budget: The Recommended Budget includes the annual funding for the Downtown Tax Increment Financing District and Business Improvement District (BID). This year, the BID’s annual assessments are scheduled to increase from $114,000 to $120,000 for the year. This increase was approved a number of years ago, when the BID was re-certified. 5. Complete the Integrated Water Resource Plan and develop solutions to achieve long term water sustainability Recommended Budget: A new Water Conservation Specialist position is proposed within the Water Fund. It is anticipated that this individual would greatly assist in furthering efforts towards water resource sustainability. In addition, the second phase of our fixed-based water meter- reading system is budgeted; this system will enable the city and, eventually, our water customers to access water consumption information for each water meter on a daily basis. 6. Implement financial plans and asset management systems to properly maintain and replace the city’s infrastructure and facilities Recommended Budget: This budget includes amounts to significantly improve the extension and use of our asset-management software (Cityworks) and for more specialized pavement and curb management tools. • The Water & Wastewater budgets include approximately $1 Million each for replacement of aging pipes. • The Water Treatment Plant replacement and expansion project will wrap-up construction this winter. (This project was fully budgeted in previous years; the final months of payments will be made using carry-over capital budget authority. No additional construction expenditures are included in this FY14 budget). • Curb Replacements are planned along South Willson (Cleveland – Koch), timed with the street mill and overlay. • Street Reconstruction is scheduled on a segment of Story Street. • Street Mill and Overlay projects are planned on: Ferguson Avenue, Technology Boulevard, North 21st Street, South 20th Street, and South Willson (above.) • Stormwater crews will continue televising our stormwater system this summer with the first Stormwater Operations crew dedicated to collecting this critical system condition information. Mapping efforts will also continue through our G.I.S technicians & interns. 7. Complete design of the police station & municipal court and educate the public on the necessity for, and passage of, a bond measure Recommended Budget: A $1 Million expenditure of General Fund money is budgeted to acquire land for a Police & Municipal Court Facility. 8. Assist Gallatin College and secure regional funding. Recommended Budget: The budget includes 1.5 mills of property tax revenue, estimated to be $127,500, in support of Gallatin College programs. City Of Bozeman 10 FY14 CM Recommended Budget 9. Continue implementation of the Climate Action Plans Recommended Budget: The Wastewater Fund includes $50,000 expenditure for the engineering work to move forward with Methane capture/co-generation at the Water Reclamation Facility. The Water Fund includes $50,000 for the development of an Alternative Energy Plan. 10. Determine the future of Bogert Pool and next steps for aquatics & Recreation Recommended Budget: The budget includes $25,000 for repairs to the ailing gutter system on the Bogert Pool. Seen as next steps are the $325,000 to design and install a Sprinkler Park feature at another park in town, and $125,000 to begin design of another aquatics facility for the city. 11. Consider a Demolition by Neglect ordinance Recommended Budget: No budget implications at this time. 12. Develop a permanent plan for the Story Mansion Recommended Budget: The budget does not include any planned revenues for the sale of the Mansion. It does include money in the Parks budget for the continued maintenance of the Story Mansion Park. In the months of May & June, it is anticipated that the Commission will be making decisions about how to market the sale or gift of the property. Significant changes during the past 12 months Increased Building Permit Activities. Our Building Inspection division has seen strong permit issuance over the past 12 months. While never completely stopping, building construction significantly slowed during the recession. For the current fiscal year to date (July-April), the total value of Building Permits for New Construction is 160% of the previous year. Remodel and Addition activity also continues to be strong. As vacant, buildable lots are consumed, we expect to see increased planning and subdivision activity. This economic activity in the development and building sector can be seen all over town. The effects of construction projects flow from Planning, Engineering & Building Inspection divisions to our Water/Sewer Operations crews (water and sewer service lines), GIS Divisions, Street Maintenance crews, Solid Waste division, Utility Clerks, etc, as we bring these new properties on-line with city services. However, the implications for property tax revenues will likely not be felt much during FY14 due to the state’s system of property appraisal. Voter Approval of the Park, Trails and Open Space Bond $15 Million. In November 2012, the voters approved the issuance of $15 Million in General Obligation Bonds for the purpose of funding park, trail, and open space acquisitions. An advisory board has been formed. We anticipate the issuance of a portion of the bonds this summer, so that land purchases can begin as early as this fall. Depending on the exact timing of the bond sale, we may be levying taxes for our first debt payment this fall. Our estimated property tax amounts in this Recommended Budget include a debt service payment estimate and a 4.12 mill tax increase. State Pension Law Changes. Significant changes were made in Helena this spring that have increased the required Employer contribution to the Montana Public Employees Retirement System (PERS). Effective July 1, 2013, according to House Bill 454, the City’s share of pension contributions will increase by 1.27% points, plus an addition 0.1% each City Of Bozeman 11 FY14 CM Recommended Budget year for the next 10 years. With our current contributions of 6.8%, the new rate will be 8.07% of compensation. This is a 19% increase in the amount of pension contribution required from the employer; expected to cost the General Fund an additional $60,000 this coming year, and the city as a whole approximately $150,000 this coming year. State Entitlement Share No-Longer Frozen: Having been frozen for the past two years under laws of the 2011 Legislature, FY14 will finally see an increase in amounts reimbursed back to the City by the State. Having foregone approximately $150,000 each year for the past two years, it is good news that these moneys will begin to grow again. For FY14, the share will see a 3.5% increase, resulting in $120,000 additional dollars for the General Fund. MMIA Declaratory Action: In December 2009, the Montana Supreme Court ruled against the City in our appeal of Delaney v. City of Bozeman. At issue was the City’s purchase of the Mandeville Farm property in 2003. Delaney was awarded $3 Million. The City and Montana Municipal Interlocal Authority (MMIA) sought judicial determination on the amounts owed by each party. In April 2012, a District Court in Helena determined that the City owed the full amount. The City filed an appeal with the Montana Supreme Court. Prior to a determination by the Court, the City and MMIA settle the case. Under the terms of the settlement, the City is to pay the MMIA a total of $2 Million. FY14 marks the second payment of approximately $700,000. Staffing Levels and Changes General Fund Positions The recommendation for the General Fund includes adding the following positions. Recommended Staffing Changes for FY14 – General Fund Number of Full- Time Equivalent Positions Battalion Chiefs 2.0 FTE Park & Trail Bond Project Coordinator 1.0 City Manager’s Office Support Position 1.0 Economic Development Specialist 1.0 Library - 12hrs of Librarian I 0.3 Library - Computer Training Center/Job Training 1.0 Library - Sunday Summers 0.25 Net Change 6.55 FTE Public Safety Positions (Police & Fire): Prior to the recession, in November 2007, local voters approved increasing our tax levy to add staff to both the Police and Fire Departments. We have budgeted for, and continue to strive to fill all of the authorized positions in FY14. City Of Bozeman 12 FY14 CM Recommended Budget The levy also approved funding three Battalion Chief Positions within the Fire Department, as a result of adding a third fire station to the City. In FY13, after operating with three stations for over three years, funding was approved to add one Battalion Chief to start in April 2013. We are now recommending that the remaining Battalion Chief positions be filled. The Recommended Budget brings two of these positions on-board on July 1, 2013. Enterprise Fund Positions We are recommending the following positions be added in our Streets, Water, Sewer, Solid Waste and Stormwater Funds. Recommended Staffing Changes for FY14 – Enterprise & Special Revenue Funds Number of Full- Time Equivalent Positions Streets/Signs & Signals (50/50) 1.0 FTE WRF Seasonal Dredge Operator 0.6 WRF Seasonal Groundskeeper 0.5 Water Treatment Plant - Temporary Hires for startup (2FTE for 3 mos) 0.5 Water Conservation Specialist 1.0 Public Works Technician (WRF/Stormwater/Landfill) 1.0 Wastewater Operations Worker 1.0 Net Change 5.6 FTE The General Fund: The City’s General Fund supports the majority of administration, public safety and public welfare operations. It’s most significant source of revenue comes from local property taxes. As a result, the General Fund’s operating budget and fund balance are critically important to the financial health of the City. This year’s General Fund budget totals $26.8 Million in expenditures, in the following areas: Department General Fund Amount Commission $ 234,023 City Manager 642,831 Courts 666,599 Attorney 913,847 Admin Svcs (Fin/IT/HR) 1,995,024 Facilities 1,195,353 Police 8,831,031 Fire 5,310,436 Public Services/Streets 328,909 Cemetery 387,968 Parks 1,266,452 Library 1,562,321 City Of Bozeman 13 FY14 CM Recommended Budget Recreation 1,771,929 Economic Development 339,729 Sustainability 122,176 Other 1,365,220 TOTAL Expenditures $26,933,848 As shown in the above graph, Police and Fire services combined comprise 53% ($14.1 Million) of the General Fund’s spending. The next largest departments are grouped together, each spending roughly $1.0 - $2.0 Million and comprising 5-7% of the budget: Administrative Services, Recreation, Library, Parks and Facilities Maintenance. Nine other departments comprise the balance of General Fund Expenditures. General Fund Unreserved Fund Balance: The City’s Charter requires an established minimum level of General Fund Unreserved Fund Balance, in accordance with the Government Finance Officers’ Association (GFOA) Best Practices. GFOA’s Best Commission 1% City Manager 2% Courts 2% Attorney 3% Admin Svcs (Fin/IT/HR) 7% Facilities 4% Police 33% Fire 20% Public Services/Streets 1% Cemetery 1% Parks 5% Library 6% Recreation 7% Economic Development 1% Other 5% FY14 Recommended - General Fund Budget City Of Bozeman 14 FY14 CM Recommended Budget Practice Recommendation was adopted, and our required minimum reserve balance is 16 2/3% of budgeted revenues. As discussed in more detail on page 75, this budget meets the required minimum reserve of approximately $4,090,000 at the end of Fiscal Year 2014. Additional Debt: As discussed previously, the voters approved the issuance of up to $15 Million in general obligation bonds for the purposes of Parks, Trails, and Open Space projects. We expect to issue approximately $5 Million of that debt in the early part of FY14. Mill Levy Comparisons Given the City’s measures to return budget savings to the taxpayers, our levy remains at 7th for comparable communities in our state. The table below shows the city tax levy for a number of communities in Montana. City 2010 Census Populations FY2013 Mills Levy Rank As a % of Bozeman Levy Havre 9,310 255.78 1 153% Missoula 66,788 240.90 2 144% Livingston 7,044 219.41 3 132% Great Falls 58,505 193.57 4 116% Kalispell 19,927 187.40 5 112% Billings 104,170 174.58 6 105% Bozeman 37,280 166.75 7 100% Belgrade 7,389 158.54 8 95% Helena 28,190 157.01 9 94% Whitefish* 6,357 120.40 10 72% West Yellowstone* 1,271 89.45 11 54% West Yellowstone and Whitefish both utilize Local Option Resort Taxes as an alternative or supplement to property taxes, which the City of Bozeman is currently prohibited from by state law. Residential City Property Taxes for FY12, FY13 and FY14 In November 2012, the voters approved this issuance of up to $15 Million in General Obligation Bonds under for the purpose of expanding, creating new, and improving existing parks, trails, athletic fields and natural areas. At the time of the vote, we estimated that a $15 million bond will cost the typical household less than $45/year. Planning to issue $5 Million of that debt this summer would result in an estimated tax increase of 4.12 mills, or $15.30 to the median residence. In 2007, at the time city voters approved the increase in tax levies for Police & Fire positions, the City’s tax levy was 154.18 mills. Adding the approved, which were to gradually increase to a total of 30 mills by FY11, would leave taxpayers with an estimated mill levy of 184 mills. The City’s total tax levy has never reached this level, and has been City Of Bozeman 15 FY14 CM Recommended Budget substantially lower than the maximum allowed by law, due to the following items: • The City did not immediately utilize the full amount of the 12 mill Fire Department staffing increase due to award of a $948,825 SAFER Grant; that levy will increase to its maximum level in FY13, upon full expiration of the 4-year grant. • For FY11, we reduced the adopted levy for the FY11 Safer Grant and Battalion Chief Positions, 911 related mills, and an additional $578,990 (7.16 mills.) This resulted in a tax levy of 168.75 mills, over 29 mills ($2.3 Million) lower than our statutory limit at that time. • For FY12, we reduced the adopted levy for the FY12 Safer Grant and Battalion Chief Positions, 911 related mills, and an additional $684,976 (8.34 mills.) This resulting tax levy of 166.75 mills was 29.87 mills ($2.5 Million) lower than our statutory limit at that time. • For FY13, we reducing the levy for the FY12 Police Vacancy Savings & FY13 Fire Vacancy Savings (estimated to be $578,525) and approximately $1,263,330 in General Fund revenue reduction. For FY14, we are estimating that a tax levy of 4.12 mills may be needed to begin debt payments on $5 Million of the voter-approved Park & Trail Bonds. This levy amount will depend on the timing and pricing of a summer bond sale. In total, we recommend increasing the tax levy to a total of 178.89 mills. Assessed Market Value FY12 Taxable Value FY12 City Tax Levy = 166.75 mill FY13 Taxable Value FY13 City Tax Levy = 166.75 mills FY14 Estimated Taxable Value FY14 Estimated City Tax Levy = 178.89 mills Median Home ~ $133,380 $3,761 $627 $3,761 $627 $3,761 $672 $150,000 $4,230 $705 $4,230 $705 $4,230 $756 $200,000 $5,640 $940 $5,640 $940 $5,640 $1,008 *Restated for FY11-FY13 for newly reported “Median Home” value. The median home “assessed market value” represents the value on the tax roll for a home within the Bozeman city limits. This is the value of the property after the “homestead exemption” is applied. Median simply means that half of the homes in the city have a higher value and half have a lower value. General Taxes - Cost per Mill For FY12, the value of one mill increased 2.1% to $82,062. We estimated a similar 2.1% increase for FY13. Actual taxable values, upon certification in August, showed a 1.4% increase over the previous year. For FY14, due to continued strong building permit issuance, we are estimating a 2.0% increase in taxable values. Taxable values for the city have had an average increase of 3.9% per year for the past 5 years. City residents living in the median residential home will pay approx $3.71 for each mill the City Of Bozeman 16 FY14 CM Recommended Budget city levies. In FY14, that is estimated to total $672 in annual property taxes on the median home. This is an increase of $45 over last year, and is estimated to be $89.04 (24 mills) lower than our statutory maximum tax rate. City-wide Street and Tree Maintenance Assessments City property owners pay annual street and tree assessments based on the square footage of the lot they own. These assessments are the major funding for Street Maintenance and Forestry Divisions. With the Commission’s focused goal of addressing deferred maintenance, we have been undertaking a 3-year increase to the Street Maintenance Assessment. The recommended budget is based on an 11% increase in the Street assessment, resulting in an annual assessment of $126.30 for the average sized lot. This increase is a result of the following: • Continued increase to Curb Replacement Fund (2% increase to 8%, ~$54,000 annual increase) • Increase to a Street Reconstruction Reserve (6% increase to 18%, ~$160,000 annual increase) • Increase in Other Operating needs. (3%, ~$81,000 annual increase) The budget recommends no increase to the Tree Maintenance Assessment maintaining an annual assessment of $16.86 for the average sized city lot. Combined, the annual increase in special assessments over the previous year is $12.52 for owners of an averaged sized lot in the city. Lot Size FY12 Approved 18% Streets & 0% Trees FY13 Approved 8.7% Streets & 0% Trees FY14 Recommended 11% Streets & 0% Trees Small= 5,000 sq ft. Streets—$69.76 Streets—$75.82 Streets—$84.16 Trees—$11.24 Trees—$11.24 Trees—$11.24 Average = 7,500 sq ft. Streets—$104.67 Streets—$113.78 Streets—$126.30 Trees—$16.86 Trees—$16.86 Trees—$16.86 Large = 10,000 sq ft. Streets—$139.56 Streets—$151.70 Streets—$168.39 Trees—$22.50 Trees—$22.50 Trees—$22.50 Water, Sewer, and Stormwater Utility Rates City property owners are by-and-large required to utilize the city’s water and sewer treatment systems. The adopted facility plans outline large capital projects will need to be funded in the coming years. This past spring, with the near-completion of the Water Treatment Plant construction, we updated our 5-year study of both Water and Sewer Rates. We will be presented this detailed analysis to the Commission during the summer, for decision making on rate changes effective September 1, 2013. As with the Street system, we have developed a recommendation that aggressively addresses the issue of deferred pipe maintenance. Our City Of Bozeman 17 FY14 CM Recommended Budget recommendation also includes adding staff positions that were deferred when building activity slowed down. The Stormwater rates were instituted in FY13, with a 4% increase already adopted for FY14. It is anticipated that FY15 will see a much-revised fee structure for Storm Water services, with fees based on a more equitable approach than the current fee based on your water meter size. For FY14, a residential customer utilizing 10 hundred cubic feet of water each month will see an estimated combined monthly increase for these services of $2.60/month, or $31.20 per year, and will aggressively address the system’s deferred pipe maintenance. Because of our inclined-block rate schedules for water services, the increase that residents experience will relate to their individual patterns of water usage (peaks, etc.) Average Residential Customer Adopted FY12 Monthly Bill 4.5% Increase Water 6% Increase Sewer Adopted FY13 Monthly Bill 4.5% Increase Water 6% Increase Sewer Recommended FY14 Monthly Bill 3% Increase Water 3% Increase Sewer 4% Incr Storm Water Water $38.43 per month $40.15 per month $41.35 per month Sewer $41.55 per month $44.04 per month $45.36 per month Stormwater -none- $ 1.67 per month $ 1.75 per month Total $79.98 per month $85.86 per month $88.46 per month Capital Improvements and their Impact on our Operating Budget The City annually prepares a Five Year Capital Improvement Plan (CIP); most recently adopted for FY14-FY18 this past winter. The items that are scheduled in that plan each spring become the starting point for budget requests at budget development time. This year, capital expenditures total over $12 Million. These purchases will have varying effects on our operations this year and into the future. See the Appendix for a listing of Capital Improvement items. Capital Item Budget Amount Impact on Operating Budget PT01: Park & Trail Bond Projects $5,000,000 Annual Operating & Maintenance: These costs are not funded by the bond issue. Depending on exactly what is purchased, operating costs could vary widely. This will need to be analyzed with each project purchased. At budget development time there are no specific projects proposed for funding. Certain acquisitions could add costs to the Parks Department budget for maintenance, or to the Recreation Department budget for operations. GF050: Police $1,000,000 Annual Operating & Maintenance Costs: Not City Of Bozeman 18 FY14 CM Recommended Budget Station/Court Facility – Land & Site Work estimated at this time. Currently, the City pays facility costs to the County for our square footage at the Law & Justice Center. We anticipate asking voters to approve an operating levy, if necessary, when approving a construction bond. W04- Water Pipe Replacement $974,165 Annual Operating & Maintenance Costs: Pipe replacements generally decrease the maintenance effort required. Current cost estimate of $12,500 per water-main mile maintained annually. WW-08- Wastewater Pipe Replacement $1,003,150 Annual Operating & Maintenance Costs: Pipe replacements generally decrease the maintenance effort required. Current cost estimate of $12,500 per wastewater-main mile maintained annually. Design, Engineering & Construction of a Splash Park (location: To Be Determined) $325,000 Annual Operating & Maintenance Costs: This project is expected to add costs to the Parks department budget for water and chemicals, and additional clean-up of the area in the summer months. Splash Parks do not require lifeguards, so additional staff are not planned. New Pool Design (Portion, remained to be budgeted next year) $125,000 Annual Operating & Maintenance Costs: Not estimated at this time. Depending on the design and size of the pool, operating costs will vary widely. We anticipate asking voters to approve an operating levy, if necessary, when approving a construction bond. CR02 – South Willson Curbs (Cleveland to Koch) $350,000 Annual Operating & Maintenance Costs: Repair of these failing curbs are expected to decrease the costs of cleaning and maintaining this street, and improve storm water services. REC04 – Story Mill Street Reconstruction $400,000 Annual Operating & Maintenance Costs: Repair of this failing street is expected to decrease the costs of cleaning and maintaining it. It is expected that a share of the project costs will be funded from the Street Reconstruction program, and a share from local property tax assessments (Special Improvement District). We intend to utilize our Special Improvement District Revolving Fund to provide the district with loan funding. Gas Tax – Street Mill & Overlays $330,000 Annual Street Maintenance Program: This maintenance program provides the necessary improvements that prevent the need for expensive reconstructions of streets. Keeping the street’s top surface in good condition prevents degradation of the structural base of the roadway. Projects are planned for: City Of Bozeman 19 FY14 CM Recommended Budget 1. Ferguson Avenue (Huffine – Baxter) 2. Technology Boulevard (Research – College Ave) 3. North 21st Street (Beall – Durston) 4. South 20th Street (Koch – Babcock) 5. South Willson (Cleveland – Koch) In Conclusion This past year has brought many changing faces to our team of public servants. We strive to provide excellent services to the citizens of Bozeman, and make creative changes in order to improve how we operate. We believe the City of Bozeman, both our community and our organization, have many exciting opportunities in the coming year. Respectfully, Chris Kukulski, City Manager Anna Rosenberry, Administrative Services Director City Of Bozeman 20 FY14 CM Recommended Budget 1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Economic Development Council (EDC) Brit Fontenot, Director of Economic Development SUBJECT: Economic Development Priorities & Funding Requests as submitted in the Economic Development FY14 Budget Request MEETING DATE: May 13, 2013 AGENDA ITEM TYPE: Action (as part of the FY14 Budget Presentations) RECOMMENDATION: Consider the recommendations from the Economic Development Council and the Director of Economic Development on priorities for the City of Bozeman for funded economic development initiatives as proposed in the FY14 budget request. (ATTACHMENT 1) BACKGROUND: On May 2, 2013 the EDC voted to support the priorities identified and ranked in this memo. The EDC notes that each item on the list is a high economic development priority and warrants funding. However, the EDC recognizes that the City Commission must consider many other competing community priorities in the budget approval process. Each item addressed below has the opportunity, on its own, to increase the impact of the City’s economic development program and further the Commissions priorities of job creation and industry diversification. However, the EDC recognizes that funding for all recommended increases in programming and activities may not be practical. The Commission is urged to consider the following prioritization for those areas which the EDC believe will have the opportunity for the most direct positive impacts to the local economy and on local businesses and the highest potential return on the investment of the City’s limited economic development resources. Overarching Strategies: 1. As clarified in Goal #1 of the City of Bozeman’s 2009 Economic Development Plan (EDP): Support the expansion and retention of existing businesses and economic 2 [sectors] that will continue to strengthen and diversify the economy and create higher paying jobs in Bozeman; 2. Compete effectively when corporate owners, executives, and site selectors have targeted Bozeman as a potential location for their business base or expansion site; and 3. Overall commitment to supporting Bozeman businesses, i.e. business friendliness. Measures of Success: 1. Percent increase & actual job growth measured annually; 2. Salary data on newly created and total overall jobs; and 3. Percent increase & actual employee data for all businesses and targeted industry sectors. Priorities are presented in their respective rank order: I. Economic Development Specialist – 1.0 FTE Rationale: 1. Actively supports Goal # 5 of the City of Bozeman Economic Development Plan: Create a more collaborative and effective working partnership between the business community and the City of Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and economic growth; 2. While the City has made tremendous strides in improving its reputation toward becoming “business friendly”, the efforts need to be continual and broadened to meet the scope and demand that is required to continue to remove barriers and improve efficiencies. The primary catalyst for making this happen is dedicated resources to build effective business relationships and to maintain consistency and continuity when executing the economic development plan and initiatives; and 3. Timeliness requires resources. We have seen significant improvement in time to market with new projects introduced to the City; and anecdotal comments are favorable regarding interactions with the City Manager’s Economic Development Team (EDT). The EDC believes that adding additional capacity by 1.0 FTE will render positive results beyond the cost of investment. Approximate Annual Expenditure: $70,000 II. Provide Continued Funding Support to Gallatin College (ATTACHMENT 2) Rationale: 1. Supports Goal # 3 of the City of Bozeman Economic Development Plan – to support education and workforce development initiatives to provide Bozeman with the qualified workers to meet the needs of business; and 2. Allocation of resources will help encourage Gallatin College to develop and maintain continuing education and certification programs for high-demand jobs. 3 Approximate Expenditure: $125,000 III. Sector Development (ATTACHMENT 3) Rationale: 1. Support and enhance economic growth of industry sectors that are experiencing or generating local and expansion opportunities, i.e. photonics/optics and the outdoor industry, and leverage the synergistic relationships for collaborative benefit; 2. Supports Goal # 1 of the City’s Economic Development Plan, and specifically addresses the need to support and promote entrepreneurial efforts linked to emerging markets, high technology, and research and development; and 3. Supports enhanced relationships with MSU and the collective impact of shared mission and initiatives. Approximate Annual Expenditure: $15,000 IV. Create EDC Marketing Collaborative Rationale: 1. Realize a ‘collective impact’ through leveraged marketing initiatives of local and regionally sponsored campaigns that share the same target markets of businesses seeking to come to Bozeman and the surrounding region; 2. Develop a collaborative marketing strategy and branding effort, sharing resources for leveraged media buys, creative development cost efficiencies, and greater overall exposure and impact; and 3. Allocate resources to address the marketing content gaps that currently exist, primarily a shared media library for images, videos, creative content, that can be shared among collaborative partners including the City, Yellowstone Country, TBID, Chamber, CVB, Downtown Bozeman Partnership, etc. along with the development of a plan for joint marketing, communications, and brand strategy. Approximate Annual Expenditure: $25,000 V. Allocate Resources for North Park Project Rationale: 1. Supports Goal # 2 of the City’s economic development plan – to maintain and upgrade infrastructure to support the current and future needs of business; and 2. Allocation of resources will help fill the gap or provide choice for manufacturing or industrial businesses that identify specific location needs conducive to the North Park model. Additionally, if completed, the North Park project complements the MSU Innovation Campus efforts by providing additional 4 alternatives for companies that may not meet the criteria for the Innovation Campus, but should be enticed to locate or expand in Bozeman; and 3. Completion of the North Park preliminary engineering report (PER) accomplishes the work necessary to position the City-owned portion of the North Park property for sale or development. Approximate Expenditure: $20,000 VI. Establish an Economic Development Incentive Fund April 15, 2013 City Commission Policy Meeting, RE: Economic Development Incentives (video link) Rationale: 1. Generates a level of commitment to economic development by dedicating resources specifically for economic development purposes; 2. While the EDC recognizes the importance of establishing an economic development incentive program, general consensus is that there are numerous federal, state, and local programs already in existence that can provide incentive opportunities for businesses. The EDC recommends that a good starting point for Bozeman would be to allocate a finite amount to be set aside on an annual basis to develop a fund that can build into a more fully defined and robust incentive program with specific parameters and performance indicators; and 3. In support of Goal # 4 of the City of Bozeman Economic Development Plan – to leverage local, state, and federal economic development resources to enhance economic growth in Bozeman – the EDC recommends that education about the existing programs would be most beneficial at this time, and that through funding the additional FTE position as noted in Priority I. above, this would help Bozeman expand those educational opportunities to help businesses take full advantage of the incentives that already exist. Approximate Annual Expenditure: $25,000 UNRESOLVED ISSUES: Unresolved issues include the Commissions desire to increase economic development resources, programs and activities. If the Commission is desirous of increasing economic development resources, programs and activities: To what level and what are the desired sources of funding to support proposed increases? ALTERNATIVES: As directed by the Commission. FISCAL EFFECTS: The fiscal effects of increased funding to support increased economic development resources, programs and activities on the City’s budget are undetermined at this time. Should the Commission allocate additional financial resources to fund proposed increases to economic development resources, programs and activities, this increase will likely have effects on either the General Fund or local tax rates. 5 Report compiled on: May 2, 2013 Attachments: 1. FY 14 Budget Proposal; 2. FY 14 Gallatin College funding request; and 3. NRMEDD sector development proposal (photonics/optics and the outdoor industry). I.FY 14 Proposed Budget for Economic Development Operations; and II.FY 14 Proposed Budget for Expansion of Economic Development Resources, Programs and Activities Economic Development FY 2014 Proposed Budget Economic Development FY 14 Proposed Budget for Economic Development Operations FY 13 Operational Budget $48,135 Operations $125,000 (approximate value of one and one half mills) – Gallatin College FY 14 Proposed Operational Budget $52,000 Operations ($3,865 increase from FY 13) $125,000 – Gallatin College (will the Commission approve additional funding in FY14? Where will it come from? GF or Millage Increase?) In FY13 we…. Continued implementation of the adopted ED plan; Conducted some community outreach; Hosted an ED Summit; Assisted with implementation of “business friendly processes”; Completed the North Park concept land use plan; Supported cluster development; Created the South Bozeman Technology District; Facilitated the development of a downtown hotel; Assisted with the restructuring of the Community Development Dept.; Raised the issue of impact fees and economic development; Explored an EDIFM Program; Lead the EDT; Served as EDC liaison; and Assisted with hiring a Community Development Director and implementation of the structural changes proposed for the Community Development Dept; In FY 14 we want to ….. Expand and increase ED outreach, activities and programs; Continue to improve town/gown relationships, especially with the business college; Actively participate in the BEAR program; Expand and improve outreach to local, state and national business communities; Attend and collaborate with local businesses on industry specific trade shows and events to promote Bozeman as a place to do business, i.e. OIA Show; Take advantage of professional development opportunities; Participate in local industry conferences, i.e. Optec; Assume responsibility of proactively managing at least two of the City’s TIF districts (Industrial and Technology); Explore creation of a development authority/entity; Facilitate development at the MSU Innovation Campus; Facilitate the sale or development of the city-owned North Park proprty; Facilitate development of a downtown hotel; Foreign Trade Zone; North Park TIF; Improve broadband connectivity (broadband steering committee); Improve and expand cluster development, especially optics and the outdoor industry; Hire an ED specialist to assist with implementation the ED plan; Work more deliberately with the EDC; and Explore the implementation of an ED incentive program. FY 13 Costs - Where did the $48,135 go? BUDGETED AND SPENT $17,200 North Park Concept Land Use Plan and components (EA Ph 1, Signage, Economic Impact Analysis, LMI Report, etc); $1, 000 on Montana Site Selector fees and promotional materials and GBRN promotional materials; $1,000 on office furniture; $700 on iPad and accessories; and $500 on travel/training and misc. operational expenses. BUDGETED AND UNSPENT $15,000 identified for intern, outreach and events; $8,200 travel and training; and $4,500 contracted services. Economic Development FY 14 Proposed Budget for Economic Development Operations Increases in the 2014 Economic Development operating budget are due to a stated desire by the City Commission to increase resources, activities and programs. A $3,865 increase in the FY 14 operational budget accounts for slight improvement and expansion of ongoing projects, i.e. Montana Site Selector, Gallatin Business Resource Network, as well as increased presence at industry specific trade shows, i.e. OIA and OpticsWest, increased participation in local industry shows and conferences, and increased education and outreach and hosting and/or sponsoring more ED events. Additionally, the proposed increases include general resources and professional training and development for staff working in the area of Economic Development. These proposed increases assume a new FTE to administer and expand existing projects and programs and take advantage of increased training opportunities. Economic Development FY 14 Proposed Budget for Expansion of Economic Development Resources, Programs and Activities The proposed expansion of the 2014 Economic Development resources, activities and programs are is in response to a stated desire by the City Commission to increase overall economic development activities at the City of Bozeman. Expansion or increase in activities is predicated on approval for adding an FTE to the ED Department. There are five areas of proposed expansion: Additional FTE (Economic Development Specialist) for a cost of approximately $70,000; An additional $15,000 to expand sector development activities (esp. in photonics/optics and the outdoor industry but also includes bioscience, manufacturing, high-tech and healthcare; An Additional $25,000 to participate in a marketing collaborative to leverage partnerships for the development of a collaborative marketing strategy and branding effort; An additional $25,000 to create an ED incentive fund; An additional $20,000 to continue or complete the North Park project; and FY 14 Funding for Gallatin College at $125,000 (allocated in FY 13). The costs for the proposed expansions, not including operational costs, totals $280,000. Economic Development FY 14 Proposed Budget for Expansion of Economic Development Resources, Programs and Activities Proposed FY14 Budget Proposed Operational Costs (General Fund): $52,000 Proposed expanded ED resources, activities and programs (GF or raise millage rate?): FTE (ED Specialist) $70,000 Sector Development $15,000 Marketing Collaborative $25,000 Incentive Fund $25,000 North Park Project $20,000 Gallatin College (?) $125,000 Total FY14 Budget Request $332,000 FY 14 budget proposal less the GF request for operations $280,000 FY 14 budget proposal less the GF request for operations and Gallatin College Funding $155,000 1 Mill = $ 86,226 or $3.71 per property owner/yr 2 Mills = $172, 452 or $7.42 per property owner/yr 3 Mills = $258,678 or $11.13 per property owner/yr 4 Mills = $344,904 or $14.84 per property owner/yr Economic Development FY 14 Proposed Budget for Expansion of Economic Development Resources, Programs and Activities Proposed FY14 Budget w/o funding for Gallatin College Proposed Operational Costs (GF?): $52,000 Proposed expanded ED resources activities and programs(GF or raise millage rate?): FTE (ED Specialist) $70,000 Sector Development $15,000 Marketing Collaborative $25,000 Incentive Fund $25,000 North Park Project $20,000 Total FY14 Budget Request w/o GC funding $207,000 FY 14 Budget less the GF request for operations $155,000 1 Mill = $ 86,226 or $3.71 per property owner/yr 2 Mills = $172, 452 or $7.42 per property owner/yr 3 Mills = $258,678 or $11.13 per property owner/yr 4 Mills = $344,904 or $14.84 per property owner/yr FY 14 Economic Development Budget Proposed Funding Sources •Continue to fund ongoing ED operations in the proposed amount of $52,000 from the General Fund; AND •For the purposes of increasing economic development resources, programs and activities, increase the number of mills currently levied by a commensurate number to fund the desired activities described above. Currently the City levies 166.75 mills . An increase in the number of mills levied (anywhere from one to four) for economic development, would result in the total number of mills remaining below the statutory limit of 196.62 mills. •The value of one mill is $86,226; •In 2012, City residents living in the median residential home paid approximately $3.71 for each mill levied. The same home would expect the following yearly increase if additional revenue was raised through mills to fund economic development: •1 Mill = $ 86,226 or $3.71 per property owner/yr •2 Mills = $172, 452 or $7.42 per property owner/yr •3 Mills = $258,678 or $11.13 per property owner/yr •4 Mills = $344,904 or $14.84 per property owner/yr City Commission’s Economic Development Objectives Facilitate job creation and encourage economic diversity; AND Strive to position Bozeman as the “Most business friendly community in the state of Montana”. Economic development goals from the 2009 Economic Development Plan Support the expansion and retention of existing businesses and economic clusters that will continue to strengthen and diversify the economy and create higher paying jobs in Bozeman; Maintain and upgrade infrastructure to support current and future needs of business; Support education and workforce development initiatives to provide Bozeman with the qualified workers to meet the needs of business; Leverage local, state and federal economic development resources to enhance economic growth in Bozeman; Create a more collaborative and effective working partnership between the business community and the City of Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and economic growth; and Maintain the high quality of life that is considered an important asset to the business community. Economic Development Council’s Priorities and Recommendations Ongoing financial commitment to Economic Development; Commitment to a business-friendly process with a focus on retention and expansion of existing local businesses; Stabilize existing local incubators and create a full service business incubator program to achieve a healthy business ecosystem; Core Services and Infrastructure; Identification and Establishment of Business Incentives; and Workforce Development. Why should we continue to invest in economic development in the City of Bozeman? in·vest - /inˈvest/ To devote one's time, effort, energy and/or money to a particular undertaking while creating expectations of worthwhile results. Local economic development activities build, and rebuild, strong community relationships and create trusting, long-term community partnerships; Economic development is intrinsic to long term sustainable development; A strong economy benefits the entire community; By investing public dollars in economic development, we invest in the future of our community. We must develop and share a long term vision, commitment and promise in building a prosperous and diverse local and regional economy; Local economic development strategies, while no panacea, are a valid complement to traditional top-down [Federal] strategies in order to deliver sustainable development and in many cases may deliver greater economic efficiency by mobilizing local and regional resources that otherwise may have remained untapped; Local economic development offers a benefit that is quite valuable to local residents: more and better job opportunities in their home community; The cost and quality of life for every household is directly dependent on local economic conditions; Business investment has many locational alternatives: We must play to our local strengths and leverage partnerships; Business activity creates the revenues to fund local services; and Economic development is everyone's business. “Serving Gallatin and Park Counties of Southwest Montana” March 26, 2013 TO: Brit Fontenot, Director, City of Bozeman Economic Development FM: Rob Gilmore, Executive Director, NRMEDD Subject: Proposal to Establish Industry Sector Groups Proposal: This proposal amends by expanding the terms of the current agreement between the City of Bozeman and the NRMEDD dated December 12, 2012. It is offered to assist the City in its efforts to establish industry groups for both the Outdoor and Photonics sectors. Project Owner: The City of Bozeman is the project Owner for deliverables and for managing compliance of this agreement and its terms. It is agreed that other economic development organizations that are acceptable to the City, including but not limited to, Prospera and the Bozeman Chamber (project Partners) shall be integrated into the work process and solutions. Industry Definition: The NRMEDD will work with the City and its Partner organizations to establish a definition for each industry association. The definition will describe the specific types of business that comprise the industry sector and that shall be targeted for the services outlined in this program. Project Area: The project area is defined as the City of Bozeman and Gallatin County, however; it is agreed that invitations will be extended to all known companies within Park County that meet the industry definition. Deliverables: The NRMEDD agrees to provide the following in conjunction with the City of Bozeman and its Partners: 1. Define the industry sector. 2. Identify companies within in each industry sector within Gallatin and Park Counties. 3. Create database of industry including company names, key personnel, addresses, products, contact data. 4. Develop and conduct an industry-specific survey. The specific questions shall be designed cooperatively but shall: “Serving Gallatin and Park Counties of Southwest Montana” a. Identify business needs and, where possible, deliver solutions to mitigate problems. b. Identify the willingness of local companies to participate in their respective industry group. 5. Develop and conduct a survey to identify the industry supply chain. The survey shall be designed to assist in identifying potential supplier-gaps in the supply chain and to promote business recruitment activities. 6. Conduct a high-level impact analysis of each industry sector. The report will estimate the economic impact of each industry within the local market. 7. Assist the City facilitate industry meetings with the Photonics and Outdoor Industries. The purpose of the meetings shall be to: a. Encourage elections of representative board members, b. Encourage cooperation for marketing, supplier contracts, local industry image and cooperative branding. Time Schedule: This project and its deliverables are to be completed by an end date of Dec 31, 2013. Fees: The NRMEDD agrees to the above deliverables for a $13,500. Fees and expenses above this amount shall be borne by the NRMEDD. Responsible Parties and Contacts: The NRMEDD contact shall be Rob Gilmore, Executive Director, NRMEDD. Termination: This agreement may be terminated on written notice at any time by either party. In the event the agreement is terminated prior to the end date then a reconciliation shall be made to satisfy outstanding obligations. Respectfully submitted, Rob Gilmore Bozeman Fire Department Supplemental Information Battalion Chiefs in Bozeman Fire Department To Enhance Risk Management and Organizational Health The purpose of the 3 Battalion Chief Positions in the Bozeman Fire Department is providing continuity of leadership and eliminating the organizational gap between fire administration and the combat firefighters. These three positions focus on managing risk, (especially low frequency / high risk events), and enhancing organizational health (communications, accountability, leadership direction and priorities). The following core enhancements outline how we will achieve this:  The three Battalion Chiefs will close the organizational gap between our administrative and operational personnel through constant personal interaction.  Battalion Chiefs will create and maintain a strong consistent culture in the department.  Battalion Chiefs will allow for 24 hour administrative supervision of all three stations.  Battalion Chiefs will allow administrative staff and firefighters to focus on their respective primary functions.  These positions establish on duty emergency response command coverage within the city limits significantly improving initial on-scene efficiency and risk management, managing Low Frequency / High Risk events. Battalion Chief Supplemental Information Page 2 of 12 Managing Organizational Health & Risk with Shift Battalion Chiefs The addition of battalion chiefs to the fire department (three to provide 24/7/365 coverage) will enhance the department’s capacity to serve the community by closing our existing organizational gaps in leadership. Simply stated, the implementation of shift based managers in the organization will allow the firefighters to be firefighters and the administrative staff to focus on the large strategic projects moving the Department forward. Out of the desire to support the community, both the shift personnel and administration have taken on projects that detract from their primary jobs. We are now at a point where we have outgrown our ability to absorb these activities without closing our current organizational gap with Battalion Chiefs. The addition of Station 3 and its personnel presents a challenge for maintaining a common operational culture within the Department. With the fire department being a 24 hour a day operation it is difficult for a single operations chief to provide consistent direct guidance for the 36 shift personnel. The amount of new personnel and personnel in new roles, with limited guidance make the addition of one battalion chief to each of the three shifts a critical function for closing the gap between operational personnel and the administration. Battalion Chiefs will provide the captains and their firefighters with consistent management and oversight that will build a common operational culture where everyone operates identically. Currently there is considerable variation between the nine captains. The three battalion chiefs will place an immediately available supervisor for all three stations working at all hours, while reducing the amount of direct reports for the operations chief from nine to three. Battalion chiefs will be responsible for managing the scheduling, payroll, discipline, and purchase approval for their assigned personnel. This will remove the operations chief’s current role in performing these responsibilities for the 36 shift personnel, freeing up time from managerial tasks to allocate towards critical projects that are strategic in nature. Bozeman Fire Department battalion chiefs are intended to assume the program management roles for a large portion of the department’s programs. This will allow the firefighters to focus on their primary functions of training, responding to calls for assistance, familiarizing themselves with the community through life safety inspections, developing pre plans, and public education events. Based on other agencies around the region, the Bozeman Battalion Chiefs are predicted to respond to approximately 15% of the calls for service (complex non-routine incidents). This allows the Battalion Chiefs to Battalion Chief Supplemental Information Page 3 of 12 more readily interact with other agencies and vendors on the managerial aspects of our functional programs without the constant interruptions experienced by our firefighters. The Battalion Chiefs are also mobile throughout the city allowing them to readily attend meetings, compared to the firefighters who are heavily tied to their engines and administrative districts (Link to Response Districts) to ensure quick response times throughout the city when 911 is called. The battalion chiefs will address the problems of on call command officers by having on duty personnel inside the city. The battalion chiefs will be responding immediately from a fire station, arriving around the same time as the fire engines. This will provide that critical coordination at the onset of non routine incidents which is challenging to achieve with on call personnel. This on duty resource will provide significantly improved support for the shift personnel at the beginning of an incident when it is most critical. The battalion chiefs will also bring efficiencies and increased safety to the incident operations with their ability to closely work and train with their crews on a regular basis. The multitude of common knowledge and skills that everyone on a emergency incident must be current on is daunting, requiring continual joint training. The ability for the administrative staff to stay current on the multitude of necessary skills is very hard while also carrying out their regular assigned duties. The combination of administrative and operational functions present an organizational gap that can be closed with battalion chiefs. In summary, the implementation of three shift based battalion chiefs will result in closing our current gap with organizational and risk management inside the Bozeman Fire Department. The battalion chiefs will bring together our shift personnel into a seamless functional team and free firefighters up to focus on their primary jobs. This will also provide the appropriate shift based management away from the operations chiefs as outlined in the Fire Department Master Plan (Link to Fire Protection Master Plan). Battalion Chief Supplemental Information Page 4 of 12 Change in Organizational Responsibilities Shift Personnel Department Leadership •Program Management •Community Relations Project Management •Initial Incident Command •Response Coordination Response •Payroll & Scheduling •Mentoring & Coordination Shift Supervision •Command Coverage •Operational Proficiency Command Coverge Battalion Chiefs Battalion Chief Supplemental Information Page 5 of 12 Challenges Creating Current Organizational Gap The Bozeman Fire Department is currently organizationally challenged by the shift personnel and administration both performing task outside of their primary duties. The majority of our line firefighters are spending as much time being project managers as they are being firefighters spending so much time coordinating projects that they struggle to maintain their proficiency as firefighters. Firefighters are unique from many other fields with their constraint of having to perform a variety of mission critical tasks without the ability to stop and read a reference manual, they have to perform correctly the first time without stopping to think. The nature of not being able to schedule the majority of their activities, working on rotating shifts, and working as a crew (staying together to maintain readiness to respond) often makes shift firefighters inefficient program managers due to the lack of consistency. The Deputy Chief of Operations (Operations Chief) is currently responsible for the shift based personnel. The Operations Chief works a base work week of 40 hours. With the Fire Department working 24 hours a day the Operations Chief is only present 24% of the time. This makes it hard for the Operations Chief to interact with the crews on a regular basis or provide consistent direction and oversight. This was compounded by the addition of a 3rd station and its personnel. While Station 3 has improved our service delivery model to the community, this expansion has made implementing a common operational culture challenging with 50 percent more shift personnel needing supervision. Battalion Chief Supplemental Information Page 6 of 12 When low frequency, high risk events do occur it is important for management level personnel to respond to fill the command positions on the incident needed to be safe and efficient while allowing the shift personnel to do their job mitigating the incident. This is currently achieved by having one of the chief officers on call 24/7 to respond when necessary. When a chief officer is not available, this role is typically covered by a captain on an adjusted overtime rate; however it is often difficult to get an off duty captain to cover. For the calendar years 2010-1012 chief officers provided coverage for 1006 days, or 91.2%, of 1095 total days. The current scheme of providing this coverage with on call chiefs is not sustainable in the long term without being detrimental to the employees. In the current structure the chiefs often go extended periods of time on call. While they may be home during the night and on weekends, they are restricted on what they can do and where they can go in order to remain capable of responding in a reasonable time. The fire service is an ever evolving field that is made up of highly specialized and perishable skills that are constantly changing. As such, continual training at all levels of the organization is critical to ensure that the low frequency, high risk events have a successful outcome. In order for a captain-paramedic to maintain their certifications and meet state and national standards, they have to receive approximately 400 hours of documented training each year (Link to BFD Target Training Hours). It is imperative that all members of the organization are operating identically on their tactical concepts, understanding of tools and equipment, and have an established level of trust for each other. Having the command officer and the firefighters on different pages is not safe. It is imperative that all operational personnel train together regularly to ensure crew cohesion during incidents. Currently the Chief Officers try to participate in as much training as possible, however this is difficult to achieve. First, each training is held three times allowing each shift to receive it. Secondly, the chiefs all have primary administrative duties assigned to them that also need to be completed so the organization operates efficiently. This conflict and lack of time makes it difficult for the Chiefs to attend the needed training to remain proficient. 1006 89 Command Coverage Days 2010-2012 Chief Command Days Captain Command Days Battalion Chief Supplemental Information Page 7 of 12 A large amount of the high risk incidents that Bozeman Fire Department responds to are heavily front loaded, meaning that the most risk and benefit gained is at the beginning of the incidents. Correspondingly a high percentage of incidents that go wrong, go wrong at the very beginning. During regular business hours the chiefs typically arrive at the same time as the shift personnel. However outside of business hours it often takes significantly more time for the on call chief to respond to the scene from home, leaving the shift personnel to manage both strategic and tactical decisions by themselves. For actual fires in Bozeman outside of business hours from 2010-2012 the first chief officer arrived an average of 24 minutes after the first engine (Link to Off Duty Response).1 During non routine incidents (requiring multiple engines and containing high risk) managing the incident is often challenging for the captains to achieve with limited our resources. Without administrative command staff they have been pulled away from their role as the experienced leader of their firefighting crew to manage the entire incident. It is often difficult for the company officers to not get pulled into the tactical activities of the incident and achieve a full picture of the incident with both tactical and strategic demands being required of them. When mutual aid is requested for large incidents, it often arrives about the same time as the chief officers, compounding the organizational overload. This can in many ways be compared to an orchestra where every musician is a master of their instrument, but need the conductor to bring them together as an orchestra. 1 This is not a thorough statistical analysis due to missing data, however appears to be representative. Fastest time was 6:52 and slowest was 43:54 (often due to delayed request for Chief Officer assistance.) 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 All calls by time of day 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Structure fires by time of day Battalion Chief Supplemental Information Page 8 of 12 Our overall calls for service are fairly evenly distributed throughout the day. However significant incidents presenting organizational challenges such as fires, serious medical calls, and vehicle accidents often occur during the 76% of the time that we do not have chief officers working (outside business hours). In the case of fires, 68% in Bozeman occur after people have returned from work at night, with 54% of all calls occurring outside of regular business hours. * Flashover is the point at which all combustibles in the room ignite and burn. Battalion Chief Supplemental Information Page 9 of 12 Background In 2006 the City of Bozeman adopted the Fire Protection Master Plan (Master Plan) developed by Emergency Services Consulting Incorporated which provided an analysis of fire protection in Bozeman based on comparable agencies and recognized standards (Link to Fire Protection Master Plan). This Master Plan identified several short term (1-18 months) recommendations to bring the fire department closer into alignment with our comparable agencies and standards. The recommendations covered a broad range of areas and were divided into implementation time frames. Several of the short term recommendations were combined into the City’s 2007 Public Safety Mill Levy to build, staff, and equip a third fire station, operational battalion chiefs, and a capital equipment replacement plan. (Link to Mill Levy Presentation). After the passage of the Mill Levy by the City’s residents, the apparatus replacement program was established and Fire Station 3 was built, equipped, and staffed, becoming operational on July 31, 2009. At that time, it was determined that the department did not have the capacity to implement battalion chiefs upon the opening of Station 3. The organization is now at a point where we need this 24/7 coordination, management, and oversight of the operational personnel. The following sections provide specific information on our organizational challenges and how battalion chiefs will address this within the Bozeman Fire Department. Department Growth Bozeman Fire Department has experienced rapid growth since 2007 in demand for services, size of the department, and movement of personnel into new roles . Historically the fire department has had a low turnover of employees, allowing the senior employees to provide consistent guidance. The rapid movement of employees due to additional personnel and retirement has drastically reduced that consistency and now we have people in positions without solid guidance or experience for them to know how to perform their job in a common manner between the crews. Battalion Chief Supplemental Information Page 10 of 12 The staffing of Fire Station 3 created an immediate increase of 50% in our shift personnel with the addition of 12 personnel for Fire Station 3 to the existing 24. As a result people have moved into new roles quicker than they historically would have to fill new and vacated positions. A common indicator of the workload fire departments are experiencing is through the “calls for service.” Calls for service are defined as each time a crew (fire engine, ladder truck, or ambulance) provide a service for someone and a report is generated. Typically this is a result of someone calling 911 and a crew being sent to assist them. Since 2007 the Bozeman Fire Department has seen a 39% increase in our calls for service (Link to Calls for Service). While calls for service is indicative of the community’s demand on a portion of our services, this demand also offsets the departments available time in other areas. As calls for service increase, the firefighters available time for other services decreases. 0 2 4 6 8 10 12 14 16 18 18 9 9 9 1 1 2 1 17 9 6 6 1 3 3 1 Personnel in new roles since 2007 Positions New in Position Battalion Chief Supplemental Information Page 11 of 12 Services Offered The fire service is often referred to as the jack of all trades for the emergency services. While fire suppression is a primary function we provide, it is one of a vast array of services that the department provides to the community. The Bozeman Fire Department provides the core functions of life and property preservation to the community. If the emergency doesn’t involve a crime where no one is injured, the fire department gets called. Unlike a lot of government services, many of these emergency response services are considered to be low frequency, high risk events. Whether it is a person trapped in a fire, administering medication to someone trapped in a car wreck, pulling someone from a frozen lake, or identifying and mitigating the chemical that is making people sick. We consider these situations to have a low frequency of occurrence in our community, but when they do occur there is a high risk (consequence) of not getting it right. To offset the low frequency of occurrence, the department trains regularly on the wide variety of services provided by the Bozeman Fire Department. These skills reinforced during training create the necessary memory reflexes (recognized primed decision making) to swiftly, safely, and properly mitigate a wide variety of situations (Description of Recognized Prime Decision Making). When not responding or training to respond to emergency events in the community, the shift personnel work on a variety of projects. On the prevention side each shift is assigned certain areas of the city that they are responsible for performing fire and life safety inspections. The shift personnel are responsible for inspecting 2,941 occupancies biennially in addition to re-inspections. In 2012 over 800 hours were spent on conducting inspections on 296 occupancies by the shifts. Shift personnel also install child car seats for the community to ensure car seats are safe and properly installed in parents’ vehicles. In cooperation with Child Care Connections, Bozeman Fire Department is the only place in Bozeman that parents can have a car seat installed by certified child car seat technicians. In 2012, Bozeman Fire Department performed 225 installations with shift personnel contributing 64 hours towards installations outside of dedicated car seat installation clinics. Battalion Chief Supplemental Information Page 12 of 12 Many of the shift personnel are also responsible for coordinating 14 of the 17 programs/ committees in the department. These include managing programs such as hazardous materials team, rope rescue, self contained breathing apparatus, personnel protective equipment, vehicle maintenance & replacement, public education committee, and so on. Typically they are the point person who coordinates scheduling, purchases, vendors, and training for that area.