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.

1:00 P.M. -

AN EXECUTIVE SESSION WAS CALLED FOR THIS TIME AT THE POLICY MEETING OF JANUARY 6, 2009.

THE TIMES LISTED FOR AGENDA ITEMS ARE ESTIMATED. ITEMS MAY BE DISCUSSED EARLIER OR IN A DIFFERENT SEQUENCE.

ESTIMATED

1. 2:00 P.M.-

CONSENT AGENDA

This item is scheduled to allow the City Council to act on the Mayor’s recommendations on the Consent Agenda. The Consent Agenda has been publicly posted.

CALL FOR AN EXECUTIVE SESSION.

A vote to call an Executive Session may be held.

AGENDA ITEMS.

This item is scheduled to give City Council members an opportunity to ask questions about the Formal Agenda on January 14, 2009. If the information is available, staff will immediately provide it to the City Council member.

ESTIMATED

2. 2:30 P.M.-

STATE LEGISLATIVE UPDATE

Staff: Fairbanks, Peters
(Presentation 15 min.)

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.

ESTIMATED

3. 2:45 P.M.-

SOLID WASTE SERVICES AND FUNDING

Staff: Naimark, Bristo
(Presentation 10 min.)

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.

ESTIMATED

3:25 P.M.- ADJOURNMENT

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.

Si necesita traducción en español, por favor llame a la oficina del gerente de la Ciudad de Phoenix, 602-262-4449 tres días antes de la fecha de la junta.

PHOENIX CITY COUNCIL MEMBERS

Councilwoman Baier

Councilman Johnson

Councilman Mattox

Councilman Nowakowski

Councilman Simplot

Councilman Stanton

Councilwoman Williams

Vice Mayor Neely

Mayor Gordon

CITY COUNCIL REPORT
COMMITTEE OF THE WHOLE AGENDA
TO:	Frank Fairbanks City Manager	AGENDA DATE:		January 13, 2009
FROM:	Karen Peters Government Relations Director	ITEM:	2
SUBJECT:	STATE LEGISLATIVE UPDATE

This report seeks approval, guidance and direction from the Mayor and Council on State legislation of interest to the City.

SESSION BEGINS

The First Regular Session of the 49th Legislature begins on January 12 under a cloud of uncertainty due to an unprecedented budget deficit and impending change on the 9th Floor of the State’s Executive Tower.

Estimates by legislative leaders place the current fiscal year’s deficit at $1.2 billion, a number that is likely to grow. In fact, the flow of tax dollars into state coffers has slowed such that Treasurer Dean Martin announced this week that Arizona could run out of money as early as February. The projected deficit for next year’s budget is estimated by some legislators at $3 billion.

Adding to the uncertainty is that in December 2008, Governor Janet Napolitano was nominated by President-Elect Barack Obama for the position of United States Secretary for Homeland Security. With Napolitano’s confirmation all but assured, Secretary of State Jan Brewer is preparing to ascend into the Governor’s Office. Details are still forthcoming on how Governor-in-Waiting Brewer plans to tackle the state’s budget crisis, but she has indicated that nothing is off the table for consideration, including tax increases.

In the shadow of the City’s own budget challenges the Office of Government Relations is working hard to protect state revenue sharing, a vital component of Phoenix’s budget. In fact, for the first time on record, shared revenue from the state accounts for the largest portion of the Phoenix general fund. Government Relations staff has been meeting with the legislative leadership in both chambers to educate members on anticipated cuts at the City and the resulting potential impact on programs and services within our community, as well as reemphasizing the importance of shared revenues.

Although there is little information at hand on how the State plans to address its budget deficit, Government Relations will closely monitor how the situation at the State Capitol unfolds and will provide timely information to the Mayor and Council as it becomes available.

PUBLIC SAFETY

Bill to Support

SB 1018: Burden of Proof; Emergency Treatment (Sen. Carolyn Allen, R – Scottsdale) defines the standard of proof necessary to establish medical malpractice for emergency departments as "clear and convincing." This measure includes paramedics and emergency medical technicians. This bill awaits committee assignments.

ELECTIONS

Bill to Support

SB 1006: Primary Election Date (Sen. Jim Waring, R – Phoenix) returns the primary election date to the eighth Tuesday before the general election in order to avoid having the primary election fall on the day after the Labor Day holiday. When Election Day is the day after the holiday, it presents considerable problems and inconvenience for polling places, precinct board workers and election officials to deliver supplies, and set up and prepare the polling places on the day before the election. Voters are also inconvenienced by the election occurring on the day after a three day holiday weekend. SB 1006 awaits committee assignments.

MISCELLANEOUS

Bills to Oppose

SB 1001: Web and Video Conference Software (Sen. Jim Waring, R – Phoenix) requires cities and other government bodies to purchase web and video conference software as well as to provide training and have 100% of its employees capable of using the software within four years. This bill awaits committee assignments.

SB 1002: Elected Officials; Print; Visual Media (Sen. Jim Waring, R – Phoenix) prohibits elected officials from using public money in any media that names or identifies the public official. As interpreted by staff, city elected officials would violate this statute by simply appearing on the City’s dedicated TV station. This would hinder the ability of elected officials to effectively communicate with City residents. SB 1002 awaits committee assignments.

RECOMMENDATION

Staff requests City Council approval, guidance and direction on these State legislative issues impacting the City.

CITY COUNCIL REPORT
COMMITTEE OF THE WHOLE AGENDA
TO:	Rick Naimark Deputy City Manager	AGENDA DATE:		January 13, 2009
FROM:	Carolyn F. Bristo Acting Public Works Director	ITEM:	3
SUBJECT:	SOLID WASTE SERVICES AND FUNDING

THE ISSUE

Since July 1980, funding for solid waste programs has been obtained through a fee-for-service enterprise fund. Revenues for solid waste programs are generated by the monthly fee charged for residential household service, disposal fees charged at the transfer stations, and the sale of recycled materials.

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. The operating budget funds the following solid waste services:

Residential weekly solid waste collection Recycling program

Quarterly bulk trash Illegal dumping crews

Transfer station and disposal costs Free weekend disposal

Household hazardous waste events Education activities

Customer service Inspections and enforcement

Long haul costs Appliance and electronics diversion

Container management /inventory

On October 16, 2008, Public Works provided an overview to the Transportation and Infrastructure Subcommittee of the solid waste fund and services the Department provides. The Subcommittee asked staff to return with options for reductions in solid waste services as an alternative to a solid waste fee increase. As a result, staff developed options for reductions as well as opportunities to generate additional revenue which were presented to the Transportation and Infrastructure Subcommittee on December 2, 2008.

OTHER INFORMATION

Based on the continuing economic downturn and resulting impact on solid waste operations, staff has taken the following actions and developed options for City Council consideration:

1) Reduced operating and capital expenditures for the current fiscal year and next fiscal year, 2) identified additional ongoing service level reductions to overall service delivery, 3) identified potential revenue sources, and 4) identified minimal fee increases.

Public Works reduced the operating budget by approximately $5.5 million for this fiscal year and next. These cuts were made in the areas of recycling education and outreach, facilities renovation, and contractual expenses associated with the economic downturn. Additionally, the department eliminated planned service enhancement projects.

Additional ongoing operational reductions have also been identified. Depending on the severity of the reduction required, this could include closing the transfer stations on holidays and weekends, reducing HHW events from ten to four times per year, eliminating daytime security staff, eliminating weekend clean-up support and reducing bulk trash collection from four times per year to three. Staff also looked at additional revenue sources including a container maintenance fee, charging non-profit organizations a nominal disposal fee, and tapping funds earmarked for solid waste end use.

Lastly, the solid waste capital improvement program was reviewed. The majority of solid waste capital is associated with landfill cell excavation, lining, and environmental compliance, equipment, and infrastructure improvements. Staff projected that $111.7 million in capital financing will be required for these purposes over the next five years. In an effort to reduce capital expenditures over the next five years, non-essential projects will be deferred for future years. The changes will reduce the amount of debt payments over the next five years by $9.8 million.

OPTIONS

Per City policy, a minimum solid waste fund balance of 7% of expenditures is maintained. To provide continued services and maintain a minimum operating fund balance, an annual fee increase is planned. This fee increase generally covers the cost of inflation and provides for modest service level increases. Four options have been developed regarding the monthly residential solid waste fee, large commercial load fee, service reductions and additional revenues sources.

A) A 3.9%, or $ 1.00, increase effective March 2009. This would raise the residential fee from $25.45 to $26.45 and assumes a $1.00 increase in future years. Also, the large commercial load fee would increase by $2.00 from $36.25 to $38.25. In addition to the fee increase, minimal additional service reductions (see attachment) would need to be implemented.

B) A 2.16%, or $.55, increase effective March 2009. This would raise the residential fee from $25.45 to $26.00 and assumes a $1.00 increase in future years. Also, the large commercial load fee would increase by $2.00 from $36.25 to $38.25. In addition to the fee increase, substantial additional service reductions (see attachment) would need to be implemented.

C) A .98%, or $.25, increase effective March 2009. This would raise the residential fee from $25.45 to $25.70 and assumes a $1.00 increase in future years. Also, the large commercial load fee would increase by $2.00 from $36.25 to $38.25. In addition to the fee increase, extreme additional service reductions (see attachment) would need to be implemented.

D) A 0%, or $0.00, increase in the residential solid waste fee this year with a $1.00 increase in future years. Also, the large commercial load fee would increase by $2.00 from $36.25 to $38.25. This option would require the same level extreme additional service reductions as Option C, and also reduces bulk trash service to two times per year from four.

RECOMMENDATION

Staff recommends 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.

Minimal Level Service Cuts (Option A)

Capital Reductions		Amount
Defer CIP Projects		$9.9M
Reduce Capital Equipment		$1M
Operational Ongoing Reductions	Positions	Amount
Hold Bulk Trash Vacancies	6	$594,000
Eliminate daytime security guards	2	$106,000
Eliminate weekend clean-up support	3	$340,000
Ongoing Revenue		Amount
$20 Container Maintenance Fee		$1.5 M

Substantial Level Service Cuts (Option B)

Capital Reductions		Amount
Defer CIP Projects		$9.9M
Reduce Capital Equipment		$1M
Operational Ongoing Reductions	Positions	Amount
Hold Bulk Trash Vacancies	6	$594,000
Eliminate daytime security guards	2	$106,000
Eliminate weekend clean-up support	3	$340,000
Close on Sundays @ NGW Transfer Station	4	$646,000
Close Transfer Station for 5 holidays	N/A	$104,000
Reduce HHW to 4 events from 10	1	$250,000
Ongoing Revenue		Amount
$20 Container Maintenance Fee		$1.5M
End Use Funding		$614,000
Increase Disposal Fee for Non-Profits to $10 per ton		$297,000

Extreme Level Cuts (Option C)

Capital Reductions		Amount
Defer CIP Projects		$9.9M
Reduce Capital Equipment		$1M
Operational Ongoing Reductions	Positions	Amount
Hold Bulk Trash Vacancies	N/A	N/A
*Reduce Bulk Trash to 3 times a year	24	$1.8M
Eliminate daytime security guards	2	$106,000
Eliminate weekend clean-up support	3	$340,000
Close Transfer Station for 5 holidays	N/A	$104,000
Reduce HHW to 4 events from 10	1	$250,000
Ongoing Revenue		Amount
$20 Container Maintenance Fee		$1.5M
End Use Funding		$614,000
Increase Disposal Fee for Non-Profits to $10 per ton		$297,000

Extreme Level Cuts (Option D)

Capital Reductions		Amount
Defer CIP Projects		$9.9M
Reduce Capital Equipment		$1M
Operational Ongoing Reductions	Positions	Amount
Hold Bulk Trash Vacancies	N/A	N/A
*Reduce Bulk Trash to 3 times a year	N/A	N/A
Reduce Bulk Trash to 2 times a year	39	$3M
Eliminate daytime security guards	2	$106,000
Eliminate weekend clean-up support	3	$340,000
Close Transfer Station for 5 holidays	N/A	$104,000
Reduce HHW to 4 events from 10	1	$250,000
Ongoing Revenue		Amount
$20 Container Maintenance Fee		$1.5M
End Use Funding		$614,000
Increase Disposal Fee for Non-Profits to $10 per ton		$297,000

* If bulk trash service is reduced from four times per year to three times per year, 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.

Official Web Site of the City of Phoenix

Phoenix - All America City - 2009