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200 WEST |
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Pursuant to A.R.S. § 38.431.02, notice is hereby given to the members of the City Council and to the general public that the City Council will hold a meeting open to the public on Tuesday, January 13, 2009, at 2:00 P.M. located in the City Council Chambers, 200 West Jefferson, Phoenix, Arizona. Council members may participate by telephone. As indicated in the Agenda, the City Council may vote to go into Executive Session, which will not be open to the public, for the purpose of discussing those matters listed on the Agenda. |
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AN EXECUTIVE SESSION WAS CALLED FOR THIS
TIME AT THE POLICY MEETING OF |
THE TIMES LISTED
FOR AGENDA ITEMS ARE ESTIMATED.
ITEMS MAY BE DISCUSSED EARLIER OR IN A DIFFERENT SEQUENCE.
Action Taken:
Mayor Gordon called the meeting to order at
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ESTIMATED |
CONSENT AGENDA |
Action Taken:
Councilman Johnson moved approval of the Consent Agenda. Councilwoman Williams seconded the motion, which passed unanimously.
CALL FOR AN EXECUTIVE SESSION.
A vote to call an Executive Session may be held.
Action Taken:
Councilman Johnson moved the City Council, pursuant to
Arizona Revised Statutes, Section 38-431.02.A, meet in Executive Session on
Tuesday, January 20, at
AGENDA ITEMS.
This item is scheduled to give City Council members an
opportunity to ask questions about the Formal Agenda on
Action Taken:
None.
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2. |
STATE LEGISLATIVE UPDATE |
Staff: Fairbanks, Peters |
This report seeks
approval, guidance and direction from the Mayor and Council on State legislation
of interest to the City.
This item is for information, discussion and possible action.
Back-up included in Council packet/City Clerk's Office.
Action Taken:
City Manager Frank Fairbanks introduced Government Relations Director Karen Peters, explaining Ms. Peters would be giving ongoing briefings to the Council about the state legislative session.
Ms. Peters stated the legislative session began on
Monday. She provided an overview of
current key issues in the Legislature, including the gubernatorial transition
from Janet Napolitano to Jan Brewer. She
indicated the most pressing issue at the legislature involved the state
budget. Ms. Peters stated legislators
were holding budget meetings throughout the week and expect a resolution by
President’s Day. She added Governor
Napolitano had submitted a budget plan, though the extent to which it would
impact the Legislature’s decisions was unclear.
She also indicated State Treasurer Dean Martin has expressed concern
about the state’s cash flows. Ms. Peters
noted if this turned out to be the case, payments to the City of
Councilman Simplot asked whether Ms. Brewer had already taken over as Governor.
Ms. Peters responded Ms. Brewer had, in effect, taken on the role of Governor.
Ms. Peters continued her overview of current key issues in the Legislature, including the state’s budget situation in 2010. She indicated the City’s main concern was with state shared revenues. Ms. Peters also stated the City could be impacted by other state budgetary decisions, such as possible increased fees.
Councilman Johnson suggested residents work with their state legislator to ensure state shared revenues are not reduced. He advocated that the City lobby strongly against cuts to state shared revenues.
Mayor Gordon affirmed Councilman Johnson’s remarks and asked whether the City had heard definitively from any legislators that state shared revenues would not be cut.
Ms. Peters indicated staff has had positive conversations with Senate President Bob Burns and other legislators.
Councilman Johnson emphasized the need for aggressive lobbying and asked staff for plans on how the City is working with the Legislature.
Mayor Gordon suggested staff prepare a list for the Council of key legislators that need to be contacted. He then suggested ad hoc committees might be formed to work with these legislators to secure their commitments that state shared revenue will not be cut.
Ms. Peters stated particular focus should be placed on members of the Legislature’s Appropriations committees. She also suggested legislators be encouraged to attend the City’s community budget hearings. She emphasized the need for direct communication between Council members and legislators.
Ms. Peters then described pending litigation between the
state and Arizona League of Cities and Towns regarding the state’s attempt to
make
Ms. Peters affirmed the importance of working with a diversity of groups and individuals to ensure state funding to the City is not decreased.
Mayor Gordon suggested staff work with the Friends of Phoenix organization. He also asked whether the City had funding designated for lobbying and other organizing efforts.
Ms. Peters stated staff would work with Friends of Phoenix and look into employing consultants and using various forms of community outreach.
Mayor Gordon emphasized the need for timeliness in these efforts. He also asked staff to encourage contractors with the City that may be affected by losses in state shared revenues to contact their legislators.
Councilwoman Williams requested the Council be sent a list of legislators’ email addresses.
Mayor Gordon proposed staff bring forward items, such as action plans, for Council approval.
Ms. Peters affirmed staff would be bringing specific plans forward.
Councilman Stanton expressed support for the Arizona League of Cities and Towns lawsuit against the state. He also emphasized the need to help state legislators understand the impact of cuts to shared revenues on the City’s budget. He also encouraged Council members to work personally with state legislators on these issues.
Mayor Gordon asked whether initial budget proposals had already been made among any legislators. He stressed the importance of being involved with legislators.
Ms. Peters explained the Joint Legislative Budget Committee had developed a list of proposed cuts in advance of the Legislature’s Special Session. She indicated state shared revenues were not proposed to be cut, though other proposals could hurt the City.
Ms. Peters referred Council members to a City Council Report asking for a Council position on two pieces of state legislation.
Mayor Gordon noted one of the bills was an unfunded mandate.
Government Relations staff member John Wayne Gonzales indicated staff was working on developing an estimate of the cost of the unfunded mandate.
Ms. Peters asked that the Council oppose the bill. She also asked the Council oppose a bill regarding the use of photographs of elected officials in the media.
Councilwoman Williams moved the Council authorize staff to lobby against the passage of the bills referenced in the City Council Report. Councilman Johnson seconded the motion, which passed unanimously.
Councilman Johnson asked staff to return with a plan on how
the City would combat any proposed cuts to state shared revenues.
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ESTIMATED 3. |
SOLID WASTE SERVICES |
Staff: Naimark, Bristo |
This report discusses the solid waste operating budget, CIP,
and current fund forecast. Four options
have been developed regarding the monthly residential solid waste fee, large
commercial load fee, and service reductions for City Council discussion and
action.
This item is for information, discussion and possible action.
Back-up included in Council packet/City Clerk's Office.
Action Taken:
Deputy City Manager Rick Naimark made introductory remarks
about the item and introduced Acting Public Works Director Carolyn Bristo and
Assistant Public Works Director John Trujillo.
Mr. Naimark stated four options have been developed regarding the
monthly residential solid waste fee, large commercial load fee, and service
reductions for City Council discussion and action.
Ms. Bristo began by providing a PowerPoint presentation that gave an overview of solid waste services. She noted over the last four years, solid waste collection services have consistently ranked among the highest in the Community Attitude Survey, placing second only to the Fire Department.
She added the department has had
managed competition for 30 years and follows high standards. Ms. Bristo discussed that services are very
visible in the community affecting a large number of households, large living
units, governments, non-profits and schools.
She provided
an overview of:
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Solid Waste Services and Funding
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Contained Collection
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Recycling
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Uncontained Collection
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Special Collections
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Household Hazardous Waste Program
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Disposal Operations
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Environmental Compliance
Mr. Trujillo continued the PowerPoint
presentation. His presentation
addressed:
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Solid Waste Revenues 2007-08
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Solid Waste Expenditures 2007-08
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Current Solid Waste Fees
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Monthly Residential Fee History
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Solid Waste Fund Balance Without Cuts
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Option A ($1.00)
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Option B ($.55)
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Option C ($.25)
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Option D ($.00)
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Solid Waste Fund Balance Options With Cuts
He introduced the four options (A-D) that have been
developed regarding the monthly residential solid waste fee, large commercial
load fee, service reductions and additional revenues sources.
He proceeded to go over Option A,
a
$1.00 increase with minimal service
reductions implemented.
In response to
a question from Mayor Gordon, Mr. Trujillo stated staff also looked at
additional revenue sources including a $20 container maintenance fee. He went on to say that the Fee would be included in all the options.
In
response to a question from Mayor Gordon, Mr. Trujillo confirmed that Option A
proposes to eliminate weekend clean-up support by the Public Works
Department.
In
response to a question from Councilman Johnson, Mr. Naimark stated the
restoration of this item is tied to restoration of the reduction in the Council
budget for community cleanups.
Councilwoman
Williams asked for confirmation on the service reductions the public would face
under option A. Mr. Trujillo affirmed
her statement.
Councilman
Simplot asked for confirmation that if a resident moved, they would be charged
a $20 container maintenance fee. Mr.
Trujillo affirmed the Councilman’s statement.
Mr. Trujillo proceeded to go over Option B, a
$0.55 increase with substantial service
reductions that would be implemented.
Mr. Trujillo proceeded to go over Option C, a
$0.25 increase with extreme service
reductions that would need to be implemented.
Mr.
Naimark pointed out that Deputy City Manager Tom Callow and Street
Transportation staff were in the audience.
He explained if bulk trash service is reduced from four times per year
to three times per year, then the Street Transportation Department would
replace already budgeted cuts with a reduction of street
sweeping from four times per year to three times per year.
Mr. Fairbanks briefly explained the
relationship between bulk trash service
and street
sweeping.
Mr. Trujillo proceeded then went over Option D, a
$0.00 increase in the residential solid
waste fee this year with a $1.00 increase in future years, with the same level extreme additional service reductions as
Option C.
Staff recommended Option B, a
2.16% or $.55 increase in the monthly residential fee, a 5.52% or $2.00
increase in the large commercial load fee, and the implementation of
substantial service reductions effective March, 2009. This would raise the
monthly residential fee from $25.45 to $26.00, and increase the large commercial
load fee from $36.25 to $38.25. Additionally, staff recommends implementing a
$20 container maintenance fee and increasing the disposal fee charged for
non-profits to $10 per ton.
Mr. Trujillo then showed a slide and briefly
discussed the Solid Waste Fund Balance Options with Additional Service
Reductions.
Ms. Bristo stated staff recommends Option B, a 2.16%
or $0.55 increase in the monthly residential fee, a 5.52% or $2.00 increase in
the large commercial load fee, and the implementation of substantial service
reductions effective March, 2009. This
would raise the monthly residential fee from $25.45 to $26.00, and increase the
large commercial load fee from $36.25 to $38.25. Additionally, staff recommends
implementing a $20 container maintenance fee and increasing the disposal fee
charged for non-profits to $10 per ton.
Mayor Gordon invited Vice Mayor Neely to comment via
telephone. She asked about the effect of
foreclosures on these numbers presented.
Mr. Trujillo said the foreclosure situation is
affecting our revenues which are down.
Vice Mayor Neely stated she would be willing to
support the $0.55 increase option, though preferred no increases overall.
Councilwoman Williams asked how much the rate would
increase if we retain current service levels.
Mr. Trujillo referred to the slide with Option A for reference.
Mr. Naimark estimated the rate increase would be
about $1.25 to $1.50, and offered a reminder that the numbers are based on
long-term projections.
Councilman Mattox asked for clarification. Mayor Gordon and Mr. Fairbanks gave their
estimates.
Councilwoman Williams stated the rate could be about
$1.50 without charging for new containers.
Councilman Johnson asked about anticipated fee
increases in the future if the economy continued to decline. Mr. Naimark stated all options assume a $1.00
increase in future years, and explained staff’s intent to make increases level
over time.
Mr. Fairbanks stated it is forecasted the economy
will improve in 10 to 11 months with no certainty, and the Solid Waste fund is
in good shape over the short term.
Councilman Simplot stated he is not comfortable
voting on the options today and sought more information on the value of the
weekend clean-up support.
He suggested staff transpose the proposed service
reductions under each option because he has concerns about some provisions such
as the container fee. He added he would
be more likely to support other provisions under the different options.
Councilman Mattox expressed concern about proposals
to sustain our solid waste fund balance while the residents are facing hard
economic times. He stated he is not as
concerned about the container maintenance fee but is concerned about passing a
big increase today.
Ms. Bristo stated she has had discussions with the
Finance Department. She discussed the
important relationship of the solid waste fund balance with the City’s fund
balance, which is an item of interest to investors.
Mr. Fairbanks briefly talked about the importance of
fund balances, its tie to the ability to borrow, and its value as a good
financial practice. He added flexibility
is possible as well.
Mayor Gordon asked if a decision is time sensitive.
Mr. Naimark pointed out the implications of waiting
too long to make a decision and its impact on the budget and positions.
Mr. Fairbanks shared that employee moves are already
being discussed and talked about the impact of a delayed decision would have on
personnel reduction in force efforts.
Mayor Gordon stated he would like to continue the item
for one week for questions to be answered.
Mr. Trujillo stated that bringing back Service Area 6
and the 43 positions involved could offer placement opportunities for those
whose jobs are cut.
In response to a question from Mayor Gordon, Mr.
Fairbanks stated staff would return with impact on positions that are filled
and vacant under each option.
Councilwoman Williams moved approval to continue the
item with the stipulation that staff would return with information on fees and
service levels.
Councilman Simplot seconded the motion. He asked staff for a clarification between a
startup fee and a replacement fee for recycling containers.
Councilman Mattox asked about the status of filled
and vacant positions and impact on services.
Mr. Naimark explained the hiring freeze.
Mr. Fairbanks explained the bumping process.
Mayor Gordon asked about the impact on revenues with
an on demand service.
Mr. Naimark stated the idea would require more study
and discussed how service is provided in the current areas.
Mr. Fairbanks spoke about the efficiencies gained
under the current system.
Mayor Gordon asked staff to review cost
recovery. Mr. Naimark stated his initial
estimate is that the fee would be high.
Mayor Gordon asked staff to review revenue enhancement
options.
The motion passed unanimously.
Action Taken:
Mayor Gordon
adjourned the meeting at
For further information, please call the Management Intern, City Manager's Office, at 602-262-4449.
For reasonable accommodations, call the Management Intern at Voice/602-262-4449 or TTY/602-534-5500 as early as possible to coordinate needed arrangements.
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oficina
Councilwoman Baier
Councilman Johnson
Councilman Mattox
Councilman Nowakowski
Councilman Simplot
Councilman Stanton
Councilwoman Williams
Vice Mayor Neely
Mayor Gordon