CITY COUNCIL REPORT

CITY OF PHOENIX

CITY COUNCIL POLICY SESSION

TUESDAY, JUNE 16, 2009 - 2:00 P.M.

CITY COUNCIL CHAMBERS

200 WEST JEFFERSON

 

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, June 16, 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 COMMITTEE OF THE WHOLE  OF JUNE 9, 2009. 

 

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 2:11 p.m.  Council members Mattox, DiCiccio, Baier, and Neely were present.  Vice Mayor Simplot and Council members Williams, Johnson, and Nowakowski were absent. 

 

ESTIMATED

1.    2:00 P.M.-

COUNCIL INFORMATION AND FOLLOW-UP REQUESTS.

 

This item is scheduled to give City Council members an opportunity to publicly request information or follow-up on issues of interest to the community.  If the information is available, staff will immediately provide it to the City Council member.  No decisions will be made or action taken.

 

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.

 

Action Taken:

Councilman Mattox moved approval of items in the Consent Agenda.   Councilwoman Neely seconded the motion, which passed unanimously.

 

 

CALL FOR AN EXECUTIVE SESSION.

 

A vote to call an Executive Session may be held.

Action Taken:

Councilwoman Neely moved that the Phoenix City Council, pursuant to Arizona Revised Statutes, Section 38-431.02.A, meet in Executive Session on Tuesday, June 23, 2009 at 1:00 p.m. in the East Conference Room, 12th Floor of the Phoenix City Hall, 200 West Washington Street, Phoenix, Arizona.  Councilman Mattox seconded the motion, which passed unanimously.

 

AGENDA ITEMS.

 

This item is scheduled to give City Council members an opportunity to ask questions about the Formal Agenda on June 17, 2009.  If the information is available, staff will immediately provide it to the City Council member.

 

REPORTS AND BUDGET UPDATES BY THE CITY MANAGER.

 

This item is scheduled to allow the City Manager to report on changes in the City Council Agenda and provide brief informational reports on urgent issues.  The City Council may discuss these reports but no action will be taken.

 

Action Taken:

Frank Fairbanks, City Manager, stated that staff is compiling new numbers; however, it seems the decline in revenue is continuing.  Mr. Fairbanks stated that staff will provide an update at the next meeting.  Mr. Fairbanks added that there are a number of add-ons included in the Formal Agenda.

 

ESTIMATED

2.      2:30  P.M.-

EMPLOYEE SERVICE RECOGNITION ANNOUNCEMENTS (NO REPORT)

Staff:   Washington, Smith
(Presentation 10 min.)

 

This item is for information only.  No City Council action is required.

 

Action Taken:

Kathy Dalton, Information Technology, was recognized by the Mayor and Council for 25 years of service to the City of Phoenix.

 

Kathleen Principe, Public Works, was recognized by the Mayor and Council for 25 years of service. 

 

ESTIMATED

3.      2:40  P.M.-

“THE LAST 24” VIDEO CASTS

Staff:   Washington, Harris
(Presentation 10 min.)

 

This report provides information to the City Council regarding the innovative use of internet technology to enhance community relationships with daily information sharing by the Phoenix Police Department.

 

This item is for information only.  No City Council action is required.

 

Action Taken:

Jack Harris, Public Safety Manager, stated this presentation will provide the City Council with information regarding the innovative use of internet technology by the Phoenix Police Department.  Chief Harris stated that as a means to enhance the department’s relationship with the community, staff has worked alongside Information Technology to create a web-based video entitled “The Last 24.”  Chief Harris stated that information on the Phoenix Police Department website is updated every afternoon. 

 

Commander Chuck Miller, Phoenix Police Department (PPD), stated that the purpose of “The Last 24” is to provide Phoenix residents with information they want to know more about.  Cdr. Miller stated that the internet episodes reflect major events in communities and neighborhoods and have typically been of great interest to viewers.  Cdr. Miller stated that the web videos have the most up-to-date information on stories the community has expressed an interest in.  Cdr. Miller stated that the City Council charged all departments to do more with less, and as a result, the Police Department partnered with the Public Information Office and Information Technology to find a way to share information at a relatively low cost.  Cdr. Miller added that the new media outlets allow Phoenix Police to share nearly real time information to the people they serve and protect everyday.  Cdr. Miller also noted that PPD has taken advantage of other social media outlets such as Facebook, Twitter, and iTunes podcasts. 

 

Mayor Gordon inquired about national attention to the Phoenix Police Department website.  Cdr. Miller replied stating that the Phoenix Police Department has received numerous awards for innovative use of technology nationally.  Cdr. Miller stated that the department has received calls and emails from organizations and other municipalities requesting permission to host a link to the web page.  Cdr. Miller stated that response to “The Last 24” has been positive, and they hope to continue with its production in the future.

 

Mayor Gordon inquired about the possibility of having “The Last 24” on Phoenix Channel 11.  Cdr. Miller replied the technology for a stream to Phoenix Channel 11 is not available as of yet.  Cdr. Miller noted that they are working to create a promo for “The Last 24” to air on the station.

 

Mayor Gordon inquired if staff was working to link our web page on other network sites.  Cdr. Miller stated that the Phoenix Police Department has been working with Information Technology and the Public Information Office to make this happen as soon as possible.

 

Councilwoman Neely inquired about the number of hits “The Last 24” is receiving.  Cdr. Miller stated that since the inaugural episode on February 2009 the web page has been averaging approximately 20,000 hits per month.  Cdr. Miller added that the webpage has seen a record high of 40,000 hits in one month.

 

Mayor Gordon expressed his thanks to staff for their work and doing everything possible to keep residents abreast of pertinent information in their surrounding communities.    

 

ESTIMATED

4.      2:50  P.M.-

STATE LEGISLATIVE UPDATE AND GENERAL FUND REDUCTIONS DUE TO LEGISLATIVE BUDGET

Staff:   Fairbanks, Peters
(Presentation 10 min.)

 

This report seeks approval, guidance, and direction from the Mayor and Council on state legislation of interest to the City.  The attachment provides additional budget information.

 

This item is for information, discussion and possible action.

 

Action Taken:

Karen Peters, Government Relations Director, introduced the item stating to date there has been no budget passed and signed by the Governor.  Ms. Peters stated that the fiscal year ends June 30, 2009, and with no approved budget, the state is facing a $3 to $4 billion shortfall.  Ms. Peters stated though the Governor introduced her own budget proposal on June 1, 2009, the legislature passed a different proposal three days later.  Ms. Peters stated that bills have been included in that budget proposal; however, that information has yet to be shown to the Governor for review.  Ms. Peters stated that the legislature has decided not to show the Governor the approved document until a clear consensus has been made among all parties involved.  Ms. Peters added that legal action from the Governor’s office formally requesting to see the included bills has been initiated. 

 

Ms. Peters stated that one previously mentioned bill, which is likely to be included, requires cities and towns to contribute new revenue gathered from vehicle license tax as a means to fund K-12 education.  Ms. Peters stated that the legislature would consider that money a loan and has plans to pay it back with interest over a five- to ten-year time frame.  Ms. Peters stated that, based on this proposal, the state would collect $42 million from cities and towns, and each would be responsible on a percentage basis.  Ms. Peters noted that the City of Phoenix contribution is estimated to be $11.8 million. 

 

Mayor Gordon inquired if this funding source was equivalent to a taking of shared revenue without an agreement among all parties.  Ms. Peters replied that the money would be a transfer of funds between parties to increase the state’s general fund budget.  Ms. Peters added that the bill might require a two-thirds vote to pass, and to date, it seemed unlikely to have the support.

 

Mayor Gordon inquired about the budget process under the previous state government administration.  Ms. Peters replied that under the previous Governor, there was a proposal to utilize state-shared revenue funds, but the League of Arizona Cities and Towns challenged that proposal in court.  Ms. Peters added that the court rendered a decision in favor of the League of Arizona Cities and Town stating that the proposal was unconstitutional.  Ms. Peters stated it was ruled unconstitutional due to the appropriateness of the bill being included in a budget proposal.  Ms. Peters noted that if this challenge reaches the Supreme Court, they may have the chance to clarify and expand upon their previous decision.

 

Councilwoman Neely expressed her dissatisfaction with state legislatures and their inability to reach consensus regarding the budget.  Councilwoman Neely stated the City of Phoenix is ready to meet with state representatives as a means to continue in the push towards leaving state-shared revenues unharmed.  Councilwoman Neely stated that she would be in favor of reviewing a proposal that included a small contribution of state-shared revenue, however, noted that the contribution must be paid back with interest. 

 

Mayor Gordon expressed his dissatisfaction with the idea that many more City of Phoenix employees might have to be laid off due to any potential cuts in state-shared revenue.

 

Frank Fairbanks, City Manager, stated that an $11.8 million reduction from the City of Phoenix General Fund budget distributed evenly among departments would result in $5 million from Police, $2.7 million from Fire, $1 million from Parks and Recreation, and $400,000 from Libraries.  Mr. Fairbanks stated that due to cuts earlier this year, all departments are working with much less than they have in years.  Mr. Fairbanks stated that Police and Fire would likely see both sworn and non-sworn employees released if this were happen.  Mr. Fairbanks added that a reduction in helicopter hours would also likely occur.  Mr. Fairbanks noted that the bill is also likely to call for a reduction in assessment ratios from 20+ percent to approximately 10 percent.  Mr. Fairbanks stated that property taxes are used by the City to pay bonds.  Mr. Fairbanks stated though Phoenix has a great bond credit rating, this bill would reduce the amount of money coming in to pay outstanding bond debt.  Mr. Fairbanks stated that with this the City would not be able to take on any new bond issue unless a decision to raise the rates is made.  Mr. Fairbanks added that would also create a problem for impact fees, as there would be no more available to create any new infrastructure.

 

Mayor Gordon inquired about existing City of Phoenix bond programs.  Mr. Fairbanks replied that staff is studying now how this could potentially impact existing projects.

 

Mr. Fairbanks stated that property taxes also fund schools.  Mr. Fairbanks stated that if the state decides to proceed on this course, cities will be responsible for contributing more to schools who have already had to make significant cutbacks. 

 

Mayor Gordon stated that the state budget will have a tremendous effect on everyone, and all residents should contact their representative directly to voice their concerns.

 

Councilman Mattox inquired about the City’s bond rating.  Mr. Fairbanks replied that currently the City of Phoenix has a great bond rating.  Mr. Fairbanks added that bond ratings are conducted through third-party organizations, making it very difficult to predict any future decisions.  Mr. Fairbanks stated that there is a growing gap between AAA and AA credit rating with AAA being the most preferred.

 

John Wayne Gonzales, Government Relations, stated that there will be other budget impacts beyond the aforementioned.  Mr. Gonzales stated that there is plan to have a three year moratorium on impact fees, thereby shifting those costs to homeowners in established areas.  Mr. Gonzales stated that future impact fees would not be used for important infrastructure elements.  In addition, no city or town would be able to update their building codes for three years. 

 

Mayor Gordon inquired about the legality of an imposed impact fee moratorium.  Gary Verburg, City Attorney, replied stating that typically moratoriums need Council approval especially if they are stated in an earlier statute, but it is assumed that a new decision would trump a previous version.

 

Councilwoman Neely stated that the City of Phoenix has approximately 55,000 lots that would have to wait three years before impact fees become available.  Councilwoman Neely urged residents to contact state representatives and express their feelings about the budget.

 

Councilwoman Baier expressed her displeasure with these types of issues being included in a budget bill.  Councilwoman Baier stated that things being discussed are policy issues and should be handled in a separate manner so that operations can continue.  Councilwoman Baier stated that state legislatures and all representatives involved should negotiate in good faith and intentions for the well-being of all Arizona residents.

 

Councilman Mattox inquired about future legal matters and if it were possible to issue permits for smart growth.  Ms. Peters replied that staff is working with Law and others to determine the next steps.

 

Mayor Gordon stated there are a lot of legal issues to work out and added that the Governor is pursuing the first of what may be many legal steps during the final days of this budget process.

 

Mr. Gonzales stated that authority and funding to proceed with the expansion of the downtown Phoenix medical school would also be eliminated.  Mr. Gonzales continued to say that immigration reforms are also included.  Mr. Gonzales stated that identification will be required for lawful presence in the United States from a person applying for local, state, or federal public benefits.  Mr. Gonzales stated that penalties will include a new misdemeanor for government personnel that fail to report discovered violations of federal immigration law and a private right of action to enforce the new provisions.

 

Mayor Gordon inquired how this would affect the Phoenix Police Department.  Ms. Peters replied that it may pose a problem to Phoenix Police in that there are provisions that limit officers from making such arrests.  Mr. Verburg stated that more research and information is needed to determine the exact effect this will have on Phoenix officers.

 

Mayor Gordon inquired if officers could be held liable in court for doing things outside of their normal course and scope.  Mr. Verburg stated that though information is needed, federal pre-emption would prevail.

 

Mr. Gonzales stated that staff is recommending to Council they oppose SB 1175: Illegal Aliens; Enforcement; Trespassing and support HB: 2331: Federal Immigration Law; Enforcement. 

 

Ms. Peters stated staff recommends opposing SB 1175 due to the language.  Ms. Peters stated that the language removes flexibility from officers.

 

Mr. Peters stated that staff is recommending to Council that they challenge the language of referendums to the Government Property Lease Excise Tax (GPLET) SB 1295: Government Property Lease Tax Reform and SB 1399: GPLET Reform.  Ms. Peters stated that GPLET reform is needed, however, due to competing approaches towards the statute reform, staff recommends holding off supporting any version.  Ms. Peters stated that staff recommends opposing SB 1399 and remain neutral on SB 1295.

 

Councilwoman Neely stated that SB 1295 begins to get at the root of the issue and it shows promise.

 

Mayor Gordon stated that SB 1295 does begin to hit the root of the issue, however, before it can receive Council approval it must meet the principles of the language that are best for the City of Phoenix.

 

Mayor Gordon inquired about SB 2474.  Ms. Peters replied that SB 2474 shows no cause for concern for the City of Phoenix; however, as an employer, we will want to monitor its progress.

 

Councilwoman Neely moved that Council approve staff recommendation to remain neutral on HB 2331, SB 1295, SB 2474, and oppose SB1175 and SB 1399.  Councilwoman Baier seconded the motion which passed unanimously.

 

Mayor Gordon stated those bills which Council has approved to remain neutral on can have City of Phoenix support once language has been finalized.  Mayor Gordon stated that staff will work with the state to come up with policy the City of Phoenix can support.

 

Councilwoman Baier urged staff to work with all cities and municipalities who would like to be involved in the process.  Councilwoman Bair stated that if cities and towns worked together they may be able to maintain adequate funding for key programs and services.

 

Ms. Peters stated that two out of the three previously proposed budgets held cities and towns relatively harmless and had garnered Phoenix support.

 

Councilman DiCiccio expressed his support of staff recommendations. Councilman DiCiccio stated that the City of Phoenix should look internally at making some tough decisions regarding the future of the budget, and consider modifying practices accordingly so that worsening troubles can be avoided.

 

ESTIMATED

3:53 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 DiCiccio

Councilman Johnson

Councilman Mattox

Councilwoman Neely

Councilman Nowakowski

Councilwoman Williams

Vice Mayor Simplot

Mayor Gordon

 

 

Last Modified on 06/19/2009 08:51:34