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 2:07 p.m. Vice
Mayor Simplot and Council members Mattox, DiCiccio and Williams were present. Councilmember’s Johnson and Neely arrived at 2:10 p.m. and Councilman Nowakowski arrived at 2:45 p.m.
Councilwoman Baier was absent.
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ESTIMATED
1. 2:00 P.M.-
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COUNCIL INFORMATION AND
FOLLOW-UP REQUESTS.
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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.
Action Taken:
There were no
information requests.
CONSENT AGENDA.
There is no Consent Agenda for consideration this week.
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:
There were no reports.
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ESTIMATED
2. 2:30 P.M.-
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REGIONAL FARE POLICY PROGRAM
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Staff: Callow, Cotton
(Presentation 10 min.)
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This report
provides an update on the regional fare process, explains the need for the fare
increase, outlines the next steps to implement the recent budget action related
to transit fares, and requests City Council input and direction.
This item is for information and discussion.
Back-up included in Council packet/City Clerk’s Office.
Action Taken:
Frank Fairbanks, City Manager, introduced the item stating
that in previous meetings staff came to Council for input on various public
transportation rate increases. Mr.
Fairbanks stated that this presentation from the Public Transit Department will
outline the need for the fare increase, next steps to implement the recent
budget action related to transit fares, and requests council input for future
direction. Mr. Fairbanks noted that
after a recent meeting with the Regional Public Transit authority (RPTA) staff
is ready to provide information on multiple fare increase options. He concluded stating that not increasing
fares will result in serious public transportation cut backs.
Debbie Cotton, Public Transportation Director, described
the Bus Program Fund Balance from June 2008 to present. Ms. Cotton stated that in June 2008 the
fiscal outlook was not as bleak as it proved to be in October 2008, and as a
result of that, the department was forced to make initial service
reductions. Ms. Cotton stated that those
cuts eliminated bus service prior to 5am
and after 10pm. She stated that the Transportation and
Infrastructure subcommittee advised staff in October to nominally raise fares
as a means to restore bus service. Ms.
Cotton noted that staff acted accordingly and presented the positive results
about restored service in November.
Lauri Wingenroth, Assistant
Public Transportation Director, detailed the fare increase hearing process
noting that there have been seven meetings throughout the Valley from December
2008 to January 2009. Ms. Wingenroth stated
that the purpose of these meetings were to gather public input on a proposed
fare increase of up to $1.00 in the base one-ride transit fare. She continued on to say that the Transit 2000
(T2000) fund assumes a $.25 increase in fare for the next few years, and
currently the City is not on pace with that action which is contributing to the
diminishing nature of those monies. Ms.
Wingenroth stated that transportation spending exceeds revenue and the general
consensus with RPTA and other municipalities is to move forward with an
increase of $.50 for service to avoid a potential $240 million deficit.
Mayor Gordon asked about the impact to the total deficit if
we did not raise fares. Ms. Wingenroth
answered by stating that it is expected to be near $240 million dollars if we
did not move forward with any type of fare increase. She also noted that staff is only presenting
council with options that were revealed from the public hearing process on this
issue.
Ms. Wingenroth detailed the history of public transportation
within the City of Phoenix, noting
specifically that when compared to other cities of its size, all Phoenix
transportation fares are considerably low.
She also noted that the City of Phoenix
maintains the same bus fare it did in 1995, which is $1.25. She stated that if that 1995 number were
inflated to present day dollars, that fare would be $1.87. Ms. Wingenroth went on to present Fare Option
#1 which assumes no base fare increase.
She stated that this option would require significant service cuts, no
service restorations, and no new expanded service options for the remainder of
this fiscal year and the next. She
continued on to say that though ridership is expected
to grow at 8.3% with this option, by not increasing fares and cutting service
the City is not going to be able to handle that capacity.
Mr. Fairbanks pointed out that it is imperative to
understand that any option Council decides to move forward with must be
implemented in July so it can be printed in the bus books.
Ms.Wingenroth then introduced
Fare Option #2 which assumes a $.25 base fare increase and a doubling of
off-bus pass fares. She stated that this
option will delay service cut options up to one year, and also will not restore
or expand any services. Ms. Wingenroth
also pointed out that with this option ridership
growth is expected to maintain or only slightly exceed their current levels.
Mayor Gordon asked if staff incorporated possible
fluctuations of fuel costs in their fare increase options. Ms. Wingenroth stated that potential fuel
costs were not accounted in these options due to their volatile nature. Mr. Fairbanks noted that any fuel projections
we receive are not guaranteed to be accurate, and assured that staff is
presenting the best compilation of information regarding potential fare
increase options.
Vice Mayor Simplot inquired if staff studied a possible
nominal increase of fares over a one or two year period. Ms. Wingenroth stated that staff did consider
those options, however studies have shown that we maintain better ridership if the complete increase hits at once versus over
an extended period of time.
Ms. Wingenroth continued to present Fare Option #3 which
assumes a $.50 base fare increase in addition to doubling the off-bus pass
fare. She stated that this option would
delay any service cuts for up to two years, and will not restore or add any
programs of service. She also pointed
out that this level of increase may decrease rider levels by approximately
.4%. Ms. Wingenroth continued that this
option is likely to be the regional proposal.
Mayor Gordon inquired if there was any concern that the
region may back away from this option and move forward with another one. Ms. Cotton stated that that is not likely,
and it is clear that all can agree with this option. Ms. Wingenroth stated all are looking forward
to moving ahead with this option because this is price point where we begin to
lose people.
Councilwoman Neely inquired about
how the City of Phoenix was being
viewed in the region with regards to this issue. Ms. Cotton replied the entire region wants to
continue and expand public transportation; however they understand the growing
cost to maintain current levels. Ms.
Cotton also stated that no one wants to increase fares, but all seem to
understand that an increase is necessary to continue service, and feel that
this is a good compromise.
Councilwoman Neely stated that gas
prices were close to $5.00 a gallon this summer, and though they are down
today, they are rising again. Councilwoman
Neely inquired if these options are going to cover
those potential costs. Mr. Fairbanks
stated that it is very hard to account for costs that can change with no
warning; however the city is committed to working to solve any issues that may
arise. Mr. Fairbanks stated that these
options are intended to address the deficit issues we are going to face in lieu
of rising fuel costs between now and the next fiscal year.
Ms. Wingenroth introduced Fare Option #4 which assumes a
$.50 base fare increase and multiplying an all day off-bus pass fare by
2.6. Ms. Wingenroth stated that under
this option there would be no more expected service cuts, and the department
would then have the means to restore and expand levels of service. She noted however that under this option we
would see a heavy negative impact on ridership.
Ms. Cotton stated that though the Transportation and
Infrastructure Subcommittee wants the focus to be on service restoration, this
option is not likely to be accepted within the region.
Mayor Gordon inquired if the “Friends of Transit” are on
board with option number 3. Ms. Cotton
replied that they are with the rest of the region in moving forward with option
number 3.
Mayor Gordon stated that Representative Balthazar, Chair of
the Transportation committee, will be in the region next week and suggested
City staff be available to make a presentation to him on this data.
Councilman DiCiccio inquired if staff has thought about
doing a complete study of all its routes as a means to restore some popular
routes and cut lower performing areas.
Ms. Cotton replied stating the study is currently underway; however the
options presented at this time are going to address current financial concerns
due to the slow down in the economy. Ms.
Wingenroth pointed out that the recently adopted budget plan calls for more
cuts to occur this July.
Councilman Johnson stated that he would like to see the
RPTA do a better job of having bus passes available for purchase at local
retail markets.
Vice Mayor Simplot stated that in some instances bus riders
could save money and time if they walk one block to a light rail station. Vice Mayor Simplot would like to see better
advertising about that issue.
Mayor Gordon stated that he would like to see less
redundancy in light rail and bus service activity, and noted Central
Ave. as a possible starting point.
Ms. Yvonne Hunter, Chairman of the Friends of Transit,
stated that the organization understands the need to raise fares and will
support presented option number 3. Ms.
Hunter expressed her organization’s desire to continue to be involved
throughout this entire process.
Mayor Gordon thanked Ms. Hunter on behalf of the Council
for the continued support from the Friends of Transit, and asked her to aid in
educating the public on transit related issues.
Mr. Fairbanks pointed out that it is important to make
clear to the public that the Light Rail had nothing to do with this current
situation. He stated that the Light Rail
did not trigger any increase in fare, and wants to make that clear to the
public in every way possible.
Mr. Gabriel Rushing, member of the Greater Phoenix Chamber
of Commerce (GPCC), stated that his organization is in support of the fare
increase presented in option number 3.
Mr. Rushing stated that they are totally opposed to option number 4.
Mayor Gordon thanked Mr. Rushing for his service and asked
that the GPCC continue to show support for future City of Phoenix
endeavors.
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ESTIMATED
*3. 2:40 P.M.-
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overview of the American recovery and reinvestment act
(NO REPORT)
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Staff: Gordon, Fairbanks, Peters
(Presentation 10 min.)
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A.
Update
from Mayor Phil Gordon regarding his recent trip to Washington, D.C.
B.
Discussion
of City’s ARRA Task Force
This item is for information only. No City Council action is required.
Back-up included in Council packet/City Clerk’s Office.
Action Taken:
Mayor Gordon introduced the item stating that the United
States Conference of Mayors (USCM) has been
very active in amending the American Recovery and Reinvestment bill. Mayor Gordon stated that the City of Phoenix
has not been represented within the USCM
since Mayor Goddard, and that this experience has already proven itself to be
very beneficial to the Phoenix
community. Mayor Gordon continued on to
say that the predominant basis of the newly signed stimulus is going to be
competitive, and will be heavily determined by which area can produce the most
jobs. He stated that to date it is
likely the state of Arizona could
receive approximately $2.9 billion, and the City of Phoenix
will have to compete for its share of those dollars directly from the state.
Councilman Johnson asked if that formula has already been
set. Mayor Gordon replied stating that
no, the formula for receiving dollars from the state government has not been
set. He continued to say that that
information will come from the Governor within the coming days. Mayor Gordon also stated that the City of Phoenix
Government Relations team is working with the state
and the Maricopa Association of Governments (MAG)
to understand the next steps that need to be taken. Mayor Gordon also pointed out that upon
receiving these dollars, they must be secured for a project within 18 to 24
months. He stated that this is important
because the Mayor or other resident representative will be held publicly
accountable for any misuse of funds.
Mayor Gordon stated that some stimulus money is going to
come directly from the federal government, and will also be competitively
based. He stated that this money will
act like a grant, however there topic of a given proposal is completely up to
the applicant. Mayor Gordon stated that
if there is a specific unique program that works well in our region and can
sustain or create jobs, then we have the charge to submit that to the federal
government for funding possibilities.
Mayor Gordon stated that the immediate challenge is to move
quickly and be better than the competition.
Mayor Gordon stated that maintaining relationships are going to be key, and pointed out that the Washington
DC access is there if it is needed.
Mayor Gordon stated that management has created an American
Recovery and Reinvestment Act (ARRA) Task Force as a mechanism to study and
compile as much information as possible about how the City of Phoenix
can move forward with receiving of federal funds. Mayor Gordon strongly urged everyone to act
swiftly but responsibly in their actions towards this federal package.
Councilman Nowakowski expressed his concerns with the speed
in which the City will have to move, and inquired if this stimulus will have
any affect on the $39.4 million Phoenix
just received to address home foreclosures.
Mayor Gordon stated that the source of the money will not be affected.
Councilwoman Williams asked if establishing public private
partnerships would be beneficial to the City as a way to get the funds out
faster. Mayor Gordon stated that that
would always be an option, however the federal government really would like to
see the local entities take charge of the money, and distribute it to those who
would like to manage and create specific jobs.
Councilman Johnson stated that the City of Phoenix
should utilize its personal resources with organizations such as the National
League of Cities. Councilman Johnson
stated that organizations such as these have tools that may be beneficial. Mayor Gordon agreed stating that a constant
physical presence in Washington DC
is especially necessary right now.
Councilman DiCiccio stated that it seems to be imperative
that the City of Phoenix not act
alone in its efforts to create jobs, programs, or grant letters, and should
work with the County and State to show a united front to the administration in Washington. Councilman DiCiccio stated that there is a
great need to have a multiplier effect in all of our proposed projects. He stated that the multiplier effect should
affect things like infrastructure, local jobs, and the economy at the same
time. Councilman DiCiccio also stated
that the City of Phoenix should
take into consideration one or two large scale initiatives that we would like
to accomplish within the next three to five years. He stated that whether that focus is on
transit or solar power, it needs to be explicitly defined for the federal government
to take a look at and hopefully provide funding for.
Councilwoman Neely stated that now
is the time to be selfish for Phoenix. She stated that we need to focus on what is
ready to go now, and have an immediate impact on our residents. Councilwoman Neely
continued on to say that the Aviation Department has a tremendous impact on the
state economy, and projects stemmed around the airport could have a much longer
impact on the economy than some others.
Mayor Gordon stated that infrastructure projects are of
extreme importance.
Councilman DiCiccio stated that the ARRA Task Force should
act as a competitive team to get things done quickly. He stated that at the next Council Policy
session he hopes to see a plan from management that explicitly states what to
do next with regards to this package.
Councilman Johnson stated that if a presence in Washington
DC is necessary the National League of
Cities has office space available on Pennsylvania
Avenue.
Mayor Gordon stated that ASU also has space available, and hopes to make
trips back to Washington DC
soon so that as Mayor he can stay abreast of what is going on.
Mr. Fairbanks stated that staff will present a plan at the
next Policy session. Mr. Fairbanks also
stated that Council should be aware that staff may have to request a small
amount of funding in order to accommodate some travel and personnel requests.
Vice Mayor Simplot asked if Council could see a list of
projects. Mr. Fairbanks stated that that
was possible, and that staff will also provide an update on some unpopular
funding sources that may be easier for the City of Phoenix
to walk away with.
Councilman DiCiccio stated that Council would really
appreciate seeing how this would affect the big picture.
ESTIMATED
3:40 P.M. -
ADJOURNMENT
Action Taken:
Mayor Gordon adjourned the meeting at 3:53 p.m.
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
Councilman Stanton
Councilwoman
Williams
Vice Mayor Simplot
Mayor Gordon