Mayor Hudson asked the Acting City Clerk of Commission, Debbie Stein, to call roll: Present: Commissioner Fess, Mayor Hudson, Commissioner Vogt, Commissioner Martin and Commissioner Terry.

City Manager Fred Enderle introduced Department Heads in attendance: Amy Welker, Elaine Barton, Stacy Wall, Andy Burner, Ed Krieger (sitting in for Bill Sommer), Gary Connell, Chief Willcox, Tom Zechman, Dean Burch, Cindy Holtzapple.

Mr. Enderle started the presentation by introducing Cindy Holtzapple, Director of Finance. The City of Piqua Core Services were reviewed and is hereto attached as Exhibit "A."

Mr. Enderle stated that several meetings were held where Department Heads ranked services and scored the services numerically. Mr. Enderle stated that in the interest of time, high levels of service would not be reviewed this evening, but encouraged Commissioners to review them and provide comment or questions to him or Cindy. Mr. Enderle stated that "Low to Medium" levels of services are the ones, depending how important Commission felt they were, will be reviewed this evening because these are the ones that may need to be cut or we may need to begin charging for some of the services. Mr. Enderle commented that this Work Session this evening is a preliminary study and Commission will need to meet again in August for a more detailed review.

Commissioner Fess asked what might be causing decrease in revenues? Mr. Enderle responded, stating that it includes a number of issues. According to corporations located in the City, the business leaders are saying that business is not bad, but they are holding off on expansions and hiring new employees to wait and see what the economy will do. Mr. Enderle further cautioned Commission that the situation in City finances is not only due to declining revenues, but that revenues cannot accelerate fast enough to balance the budget.

Commissioner Vogt questioned whether mandatory tax filing would help the City. Ms. Holtzapple stated that it could, but she is not sure to what extent. The City is currently evaluating mandatory tax filing.

During the review of the Parks Department "Low Priority" item in regards to the Annual Car Show, Commission Vogt questioned the generated revenues for the car show. Commissioner Vogt stated that he raised $3,000.00, but found out that the Park Department employees were being paid at time and a half. Mr. Enderle stated that this may be something to look at in the future and maybe we could possibly ask the employees to volunteer instead of being paid.

Commissioner Terry asked if there is a charge for swimming lessons and Ms. Holtzapple reported that we do charge.

Commissioner Fess asked how our rates compare to the YMCA for swimming lessons? Stacy Wall, Law Director reported the YMCA charges $60.00 for 5 weeks for non-members and $20.00 for members. Mr. Enderle reminded everyone there is also an annual membership fee.

During the review of "Public Safety" - Low Priority of Direct Service items, Commissioner Martin asked what entailed "Daily property incidents" investigated by the Police was and why it did not generate City revenue? Chief Willcox responded by stating this relates to lost phones or bicycles that are found as a few examples.

During the review of "Administration" - Medium Priority of Direct Service items, Commissioner Fess asked what a special project might be in Administration as listed? Mr. Enderle replied that for example he might ask Human Resources to do an analysis of benefits or any project of that type in-house.

Commissioner Vogt asked if the City received any DARE grants? Chief Willcox reported that the City receives about $20,000.00 in grants but stated that this does not begin to cover the cost for the DARE program.

Mr. Enderle told the Commissioners there are services provided that may only benefit small special interest groups such as golf lessons, swimming lessons, etc. that should be paying for themselves. He reported that maybe the City should not be subsidizing these types of services.

Commissioner Fess asked how our lesson fees compared to Troy and other communities.

Mr. Enderle commented that the "Low Priority" items should be market rate based. The rest of the citizens should not be paying for some services that only pertain to a small group of individuals. Mr. Enderle further stated that the City needs to look at how much money we are losing with some of these services and then we should look at what other communities are charging to set a rate.

Commissioner Vogt stated that possibly the City could look at raising rates for rental facilities.

Commissioner Fess questioned whether the Wellness Program was a program done internally? Ms. Barton, Human Resources Director stated yes and that the employees have formed a Committee and the Committee has had guest speakers, etc. and they are planning to conduct health risk assessments for employees that may be interested. Mrs. Barton further stated the program is about healthier choices.

Mr. Enderle then presented information on "Benefit Comparisons". This review was of the different levels (Union, Non-Union) compensation packages. The spreadsheet is hereto attached as Exhibit "B." Mrs. Barton reported that vacation pay for employee's range between 2-5 weeks dependent upon the years of service. Mr. Enderle reported that one group of employees, while of union, have their own "Memorandum of Understanding."

Commissioner Fess asked about the budgeted $7,500 for education (Tuition Reimbursement) for the FOP. Commissioner Fess asked how this was dispersed and if this was allocated annually to the City budget? Chief Willcox explained the tuition reimbursement and how they paid for education within his department. Mr. Enderle indicated it is an annual allocation per the agreements.

Mr. Enderle reviewed the 2007 Gross Wages in descending order of gross pay attached hereto as Exhibit "B." This report is broken down by categories: re: overtime, holiday hours, vacation hours reported City Manager Enderle.

Ms. Holtzapple reminded the Commission that Firefighters have the 56-hour work week.

Mr. Enderle stated that based on the information he was concerned about giving some employees an increase and not others because this could cause morale issues when unions get increases and other groups do not get pay increases.

Commissioner Fess thought it was commendable that the Department Heads gave up their raises due to the circumstances of City finances. Mrs. Fess stated that she is getting "hammered" by citizens that do not agree with the increases, but feels that the employees are deserving of a pay increase.

Mr. Enderle stated that the 2008 budget was approved by the previous Commission with the increases, with the understanding that in 2008 a Long-Range financial planning process would be undertaken whereby the City would look at all items rather than making cuts that would go from year to year. For example, Mr. Enderle thought that possibly Comp Time might be something to review in the future that might be a better reduction than the annual cost of living increase.

Commissioner Fess stated that the local industries are not giving their employees 3% increases. Mr. Enderle mentioned that he knew of local corporations that have given increases and asked Commissioner Martin if Hartzell Propeller provided their employees with an increase? Commissioner Martin stated he received a 3% increase. Commissioner Fess stated that she understands the pay increases but the citizens of Piqua may not.

Commissioner Martin asked if they put the brakes on the increases now wouldn't that be better now than waiting in 2009?

Mr. Enderle suggested when arbitration over contracts starts to occur that possibly a change in job title and reduction in overtime pay and benefits would be better solutions.

Commissioner Vogt stated that a monetary raise might be the way to go. He mentioned what a local company did with their wage increase. Maybe a fair formula getting away from across the board percentage increases should be looked into stated Commissioner Vogt.

Commissioner Fess stated she remembered back in the early 80' when a "raise freeze" took place for 3 years. Mrs. Fess further stated she knows of no place where they put in 24% for retirement.

Mr. Enderle explained that not all the employees get a 24% retirement, also, the City government jobs are unique and are not a typical local market job for example: Engineers and Police Chiefs are a national market.

Commissioner Fess asked how could we raise fees (revenue generating) from citizens for employee's wages? Mr. Enderle stated that the budget was approved for 2008 that included the increases of all those employees associated in Schedule "A" and no new fee increases were proposed beyond those required to meet mandates. The idea was this year, 2008, that we need to get through "as is" and figure out where we go in the long term, stated City Manager Enderle. Mr. Enderle further stated that every item in the low-medium priority for Core Services needs to be looked at and those that are non-revenue producing need to be reviewed.

Commissioner Fess asked what the difference in pay was between Police & Fire? She stated that the Firefighters pay looks higher. It was stated that the overtime is the reason. Mr. Enderle stated that both Police and Fire are in the same range of pay.

Commissioner Terry questioned how much money would Comp Time save? Mr. Enderle reported he couldn't give an exact figure but probably in the $180,000 to $250,000 range.

It was asked what percentage the employees are currently paying for their healthcare? It is currently 11% stated Mr. Enderle and this is something the staff is reviewing and we will want to look at for healthcare savings costs.

Mr. Enderle talked about HSA/HRA insurance benefits and stated that employees whom are in the HSA fund are managing their fund balance for their healthcare benefits and perhaps we can trade off increases in premium costs for funding HSA's.

Commissioner Terry mentioned that some of the things that help most within the City as far as revenue savings are benefits and insurance costs which could be looked at in the future as well.

Commissioner Fess asked if there was any way of removing or reducing benefits of union employees? Mrs. Fess asked if the Unions were open to the fact that the City is hemorrhaging and are they willing to do anything or change any of their benefits?

Mr. Enderle stated that overtime needs to be reduced and we must find ways to do things differently. It was suggested that a Consultant would cost about $80,000 for both Police and Fire Departments to review operations in those areas. Commission was concerned about the cost of Consultation.

Commissioner Fess asked if all the employees are aware of the budget constraints? Mr. Enderle replied that he has been to all departments speaking on the topic and the issue has been discussed with all. Mr. Enderle said that he would be meeting with the Fire Department on May 28th.

Commissioner Terry asked what the employee feedback has been? Mr. Enderle stated that the employees do understand, but are uncertain as to what should be done.

Commissioner Fess asked if Mr. Bumgarner had anything in the works as far as Economic Development for the City of Piqua. Mr. Enderle reported a few things are happening with business expansions on new small businesses that may increase employment levels somewhat. Mr. Enderle further stated that the City does have some advantages that other cities do not have such as available land with rail and available buildings, but competition is stiff.

Mr. Enderle asked for direction from Commission in regards to tabled Ord. No. 9-08 for Schedule "A" employees.

Commissioner Fess asked if the Commission could announce at the upcoming Commission meeting the concessions that the Department Heads made? City Manager Enderle stated he could mention it in his introduction of the Ordinance or Commissioners could mention it if they chose to do so.

Commissioner Terry stated that the 2008 budget was approved with the 2008 pay increases for Schedule "A' employees and in good faith she stated that we should give this raise and look at next year with all groups, be it union, non-union as to changes.

Commissioner Terry asked if Schedule "A" would need to be changed again? The language in the Ordinance would need to be modified to exclude Department Heads, but the Schedule would not need changed stated Ms. Wall.

Mr. Enderle stated that another study session would be scheduled for the 1st part of August at which time the insurance information will be reviewed.

Commissioner Fess thanked all the Department Heads for their hard work in creating this information that was provided this evening.

Mr. Enderle stated that the Department Heads are a great group and the best he has ever worked with indicating they have great organizational perspectives and he was very proud of all of them.

Moved by Commissioner Fess and seconded by Commissioner Vogt, to adjourn from the Piqua City Work Session at 7:00 P.M. The motion carried unanimously.

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THOMAS D. HUDSON, MAYOR

PASSED: __________________________________

ATTEST: __________________________________
DEBORAH A. STEIN
ACTING CITY CLERK OF COMMISSION