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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 6/6/2000 (3) MINUTES OF THE REGULAR MEETING OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, HELD TUESDAY, JUNE 6, 2000, AT 5:30 P.M. The meeting was called to order by Mayor Scruggs, with Vice Mayor Eggleston and the following Councilmembers present: Goulet, Lieberman, and Martinez. Councilmembers McAllister and Samaniego were absent. Also present were Martin Vanacour, City Manager; Ed Beasley, Assistant City Manager; Gary Verburg, Interim City Attorney; and Pamela Oliveira, City Clerk. COMPLIANCE WITH ARTICLE VII, SECTION 6(c) OF THE GLENDLE CHARTER A statement was filed by the City Clerk that the three ordinances and two resolutions to be considered at the meeting were available for public examination and the title posted at City Hall more than 72 hours in advance of the meeting. ORDINANCE 1. SALE OF NEW GENERAL OBLIGATION BONDS, NEW STREET AND HIGHWAY USER REVENUE BONDS AND NEW WATER AND SEWER REVENUE BONDS Mr. Art Lynch, Finance Director, presented this item. In November of 1999, the voters of the City of Glendale authorized the issuance of $411 million in bonds for various capital improvements in the City, including flood control projects, economic development, transit, public works facilities, landfill, water and sewer, parks and street improvements. On May 9, 2000, the Council adopted three separate resolutions authorizing the sale of $21,675,000 General Obligation Bonds, $8,750,000 Street and Highway User Revenue Bonds and $53,000,000 Water and Sewer Revenue Bonds. The sale of the bonds will be used to fund various approved capital improvement projects covered by the 1999 or prior voter authorization. On June 6, 2000, sealed bids for each of the three bond issues were received. For the first time in Glendale's history, staff allowed electronic submission of bids by underwriters in addition to traditional bidding. A representative of Howarth and Associates, the City's independent financial advisor, was present to help evaluate the bids and answer any questions. The bids will be awarded on three separate ordinances, based on the lowest true interest cost to the City. 1 Funding for the Debt Service on the bonds has already been approved as part of the Fiscal Year 2000/2001 capital improvement plan budget adoption process. The recommendation was to waive reading beyond the title and adopt three separate ordinances accepting the lowest bidder for the purchase of $21,675,000 in General Obligation Bonds, $8,750,000 in Street and Highway User Revenue Bonds, $53,000,000 Water and Sewer Revenue Bonds, and declaring an emergency. Mr. Lynch stated that one more councilmember was expected to be present at tonight's meeting to meet the requirement of having three-fourths of the Council present to affect an emergency clause. Mr. Lynch reviewed the results of today's bond sale. He stated that bids on the Street and Highway User Bonds and the Water and Sewer Revenue Bonds were received through electronic bidding on the Internet. He noted that this was the first bond deal done through Internet bidding. He pointed out that they also had rating reviews by Moody's and Standard and Poor's. He stated that Moody's confirmed its rating of AA2 and AA on the General Obligation Bonds and AA3 on the Water and Sewer Bonds. He said that they had received a double upgrade from Standard and Poor's in terms of the Water and Sewer Bonds. He added that the Street and Highway User Bonds were upgraded by Moody's from Al to AA3. He noted that this is the highest rating of any Street and Highway User Revenue Bonds in the State of Arizona and the highest rating category given nationwide, with only two other municipalities in this category. Mr. Lynch read the results of each of the bids. He stated that, in the General Obligation Bond sale for $21 ,675,000, there were eight total bidders and that Merrill Lynch & Co. was the winning bidder at 5.3536 percent. He noted that there were nine bidders for the $53,000,000 Water and Sewer Bond sale and that Morgan Stanley & Co. was the winning bidder at 5.1350 percent. He stated that Wachovia Securities, Inc. was the winning bidder on the Street and Highways Bond sale at 5.2033 percent. Mr. Verburg advised the Mayor and Council that they could adopt these bond ordinances with five out of seven councilmembers present at the meeting. He noted, however, that the vote would have to be unanimous to effect the emergency clause. Councilmember Lieberman stated that Mr. Lynch had done a magnificent job with regard to the City's financial status. Ordinance No. 2144 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF CITY OF GLENDALE, ARIZONA GENERAL OBLIGATION BONDS, SERIES JUNE 1, 2000, IN AN AGGREGATE PRINCIPAL AMOUNT OF $21 ,675,000 FOR THE PURPOSE OF PROVIDING FUNDS TO PAY ALL OR A PORTION OF THE COSTS OF CERTAIN PROJECTS OF THE CITY AND TO PAY ALL NECESSARY LEGAL, FINANCIAL, ARCHITECTURAL, ENGINEERING AND OTHER COSTS IN CONNECTION THEREWITH; PROVIDING FOR THE AWARD OF SAID BONDS; AUTHORIZING THE EXECUTION OF A BOND REGISTRAR AGREEMENT; AUTHORIZING AN OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION OF A CONTINUING DISCLOSURE UNDERTAKING, DTC LETTER AGREEMENT AND CERTAIN OTHER DOCUMENTS AND THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE AND DELIVERY OF THE BONDS; AND DECLARING AN EMERGENCY. Ordinance No. 2145 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF CITY OF GLENDALE, ARIZONA STREET AND HIGHWAY USER REVENUE BONDS, SERIES JUNE 1, 2000, IN AN AGGREGATE PRINCIPAL AMOUNT OF $8,750,000 FOR THE PURPOSE OF PROVIDING FUNDS TO IMPROVE, CONSTRUCT, RECONSTRUCT AND MAINTAIN STREETS AND HIGHWAYS IN THE CITY AND TO ACQUIRE RIGHTS-OF-WAY FOR THAT PURPOSE AND TO PAY ALL NECESSARY LEGAL, FINANCIAL, ARCHITECTURAL, ENGINEERING AND OTHER COSTS IN CONNECTION THEREWITH; PROVIDING FOR THE AWARD OF SAID BONDS; AUTHORIZING THE EXECUTION OF A BOND REGISTRAR AGREEMENT; AUTHORIZING AN OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION OF A CONTINUING DISCLOSURE UNDERTAKING, DTC LETTER AGREEMENT AND CERTAIN OTHER DOCUMENTS AND THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE AND DELIVERY OF THE BONDS; AND DECLARING AN EMERGENCY. Ordinance No. 2146 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF CITY OF GLENDALE, ARIZONA WATER AND SEWER REVENUE BONDS, SERIES JUNE 1, 2000, IN AN AGGREGATE PRINCIPAL AMOUNT OF $53,000,000 FOR THE PURPOSE OF PROVIDING FUNDS FOR WATER AND SEWER IMPROVEMENTS IN THE CITY AND TO ACQUIRE RIGHTS-OF-WAY FOR THAT PURPOSE AND TO PAY ALL NECESSARY LEGAL, FINANCIAL, ARCHITECTURAL, ENGINEERING AND OTHER COSTS IN CONNECTION THEREWITH; PROVIDING FOR THE AWARD OF SAID BONDS; AUTHORIZING THE EXECUTION OF A BOND REGISTRAR AGREEMENT; AUTHORIZING AN OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION OF A CONTINUING DISCLOSURE UNDERTAKING, DTC LETTER AGREEMENT AND CERTAIN OTHER DOCUMENTS AND THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE AND DELIVERY OF THE BONDS; AND DECLARING AN EMERGENCY. It was moved by Goulet, and seconded by Lieberman, to approve Ordinance No. 2144 New Series. Motion carried on a roll call vote, with the following members voting "aye": Goulet, Eggleston, Lieberman, Martinez, and Scruggs. Members voting "nay": none. 3 It was moved by Lieberman, and seconded by Martinez, to approve Ordinance No. 2145 New Series. Motion carried on a roll call vote, with the following members voting "aye": Goulet, Eggleston, Lieberman, Martinez, and Scruggs. Members voting "nay": none. It was moved by Martinez, and seconded by Lieberman, to approve Ordinance No. 2146 New Series. Motion carried on a roll call vote, with the following members voting "aye": Goulet, Eggleston, Lieberman, Martinez, and Scruggs. Members voting "nay": none. RESOLUTIONS 2. AUTHORIZATION OF LEASE AGREEMENT Mr. Art Lynch, Finance Director, presented this item. He stated that Finance Department staff had been working on capital lease financing opportunities related to budgeted capital outlay in various departments. In April of 2000, Finance Department staff met with the management team to review needs and items to be financed at this time. Staff then prepared, for the Council's consideration, a resolution authorizing the Chief Financial Officer to obtain capital lease financing for authorized expenditures not to exceed $25,000,000. After the Council's approval on May 9, 2000, staff proceeded to work with the City's independent financial advisor and bond counsel to structure the capital lease documents required by prospective lessors. Items to be funded in this capital lease purchase include construction of a new Adult Center, construction of a Material Recovery Facility, and the purchase of 54,500 Ninety-Gallon Recycling Containers. Staff and the independent financial advisor reviewed the proposals received and a recommendation was made at this evening's meeting. Each proposal's benefit to the City was evaluated based on best interest rate, prepayment terms offered, and conformity to requested specifications. The recommendation was to waive reading beyond the title and adopt a resolution authorizing and providing for the execution and delivery of a lease agreement for the purpose of funding certain projects and related costs. Resolution No. 3381, New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND PROVIDING FOR THE EXECUTION AND DELIVERY OF A LEASE AGREEMENT IN AN AMOUNT NOT TO EXCEED $25,000,000 FOR THE PURPOSE OF PROVIDING FUNDS TO PAY ALL OR A PORTION OF THE COSTS OF CERTAIN PROJECTS OF THE CITY AND TO PAY ALL NECESSARY LEGAL, FINANCIAL, ARCHITECTURAL, ENGINEERING AND OTHER COSTS IN CONNECTION THEREWITH; PROVIDING FOR THE AWARD OF SAID LEASE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THE LEASE; AND DECLARING AN EMERGENCY. 4 It was moved by Goulet, and seconded by Lieberman, to pass, adopt and approve Resolution No. 3381 New Series. The motion carried unanimously. 3. REVIEW AND ACCEPTANCE OF THE PROPOSED FISCAL YEAR 2000-2001 BUDGET, PUBLIC HEARING AND ADOPTION OF RESOLUTION Mr. Charlie McClendon, Budget Director, presented this item. After four special budget workshops which were held in March and April of 2000, the City Council completed its review of the proposed Fiscal Year 2000-2001 budget. The workshops provided the Council with the opportunity to closely analyze and evaluate all aspects of the budget. The public hearing tonight on the proposed budget is required prior to Council adoption of the preliminary budget for Fiscal Year 2000-2001. Council approval of this preliminary budget will set the maximum level of expenditures for next year. Adjustments and reallocation of expenditures can be made after adoption of the preliminary budget, but the total amount of expenditures cannot be increased. This year, one of the primary goals is to incorporate technological enhancements, where possible, to streamline and improve City operations. Technology continues to progress at an astounding pace and Glendale embraces these new advances to help deliver quality services to its customers efficiently and accurately. When Dr. Vanacour addressed City employees at the beginning of the budget process, he instructed them to consider whether their operations could improve through the utilization of new technology. He was pleasantly surprised at the response. Nine technology-related supplemental requests were approved, including: • Telephone system upgrades for the City Court and Customer Service Office. • Continued expansion of and improvements to Glendale's award-winning website (www.ci.glendale.az.us), including the purchase of content management software and an improved Internet connection service. • Software upgrades in the Recreation Department that will offer, in addition to the existing in-person registration process, two additional registration methods for special interest classes and sports: Internet registration through the City's website, and an automated touch-tone telephone registration system. • A new web-based budget input system, improving user accessibility and speed. • An improved and expanded application/permit tracking system for the Building Safety and Planning Departments. 5 • Ongoing upgrades to the PeopleSoft Human Resources and Financial Systems. Several service improvements have already been implemented, or are currently in process, throughout the organization for which no additional funding was necessary. Considerable time savings are being realized as these changes are implemented. These improvements include: • Enhanced vendor access to the City's bid processes through new Internet and faxing capabilities. • An expanded employment application process that will enable potential employees to complete and submit employment applications 24 hours a day through the City's website. • Access to dozens of intra-departmental forms on the Intranet, the City's internal web page. Providing the forms in this electronic format eliminates the need for preprinted copies and saves staff time by allowing employees to complete and submit them electronically. While these technological improvements streamline operations, retaining the human touch is essential as the City enters the 21st century. Holding onto its skilled employees has become an increasing challenge in this booming economic market. The demand for quality employees in both the public and private sectors has dramatically changed the City's operational environment, and Glendale must be able to compete in the employee marketplace. To address this challenge, the Council has authorized an additional two percent salary adjustment to bring employee compensation into greater parity with other Valley employers. Additionally, $250,000 has been set aside to fund a Comprehensive Compensation Review. This review will allow the City to examine and compare superior compensation programs in both the public and private sectors, and modernize its own system in order to retain its valued employees and recruit high-quality applicants. Employee issues have been at the forefront of this year's process. Recent case law regarding temporary employment prompted Dr. Vanacour to direct a review of Glendale's temporary employee policy. During this review, department heads were asked to identify whether the temporary employees in their departments fit the true definition of "temporary". In many cases, these employees were performing ongoing duties and, in accordance with the City's existing policy, supervisors were forced to terminate their temporary employees, even though they had become reliable and trusted team members. 6 As a result of the review, the City's temporary employment policy was amended and the Council adopted a goal appropriating $148,416 to convert several temporary positions to regular status. Fifty-five full-time equivalent positions are being converted, with a majority of the funding for the conversions being reallocated from departments' hourly budgets to their salary budgets. The policy change will save time and money in that it will only be necessary for supervisors to recruit, hire and train new employees once every several years (until they are promoted or decide to leave) rather than hiring and training new temporary employees each year. The Police Department will hire 18 additional police officers with grant monies awarded through the COPS (Department of Justice Office of Community-Oriented Policing Services) Universal Hiring grant. Additionally, Juvenile Accountability Incentives Block Grant (JAIB) program funding will be used to expand the City's school resource officer program by hiring a school resource officer assigned to Landmark Middle School. While some cities throughout the United States struggle to find funding to continue employing their officers as grant monies expire, the City of Glendale put mechanisms in place before its officers were hired to ensure continuous funding of the positions when grant monies are depleted. Since receiving its first COPS grant in 1995, more than 50 permanent officers have been added to its police force and will continue to serve its citizens well into the future. In order to handle the increased workload generated by the new officers, two detention officers will be hired through the Police Department's Special Revenue Fund. This fund was created as a result of a 1994 citizen-initiative approving a 0.1 cent increase in the local sales tax to provide additional funds for police and fire personnel and equipment. Improving the downtown area through the acquisition and redevelopment of existing property has been a longstanding goal of the Mayor and City Council. The Council has appropriated $200,000 to hire a consultant to prepare a comprehensive long-range Downtown Development Plan that will address economic development, current and future land uses, recreational and tourism opportunities. The recent purchase of the 56,387-square-foot Bank of America Building at 5820 West Glenn Drive supports this philosophy and assures the continued existence of prime, "Class A" office space in downtown Glendale. While most of the current tenants will continue leasing space, the building will provide accommodations for public restrooms and a tourism center. This purchase emphasizes the commitment of the Mayor and Council to preserve the character of downtown Glendale, while welcoming economic development opportunities that will further enhance the area. 7 The City's numerous downtown festivals, including Glendale Glitters, the Chocolate Affaire and the monthly antique walks, attract thousands of people to the City's tree-lined streets. The recent debuts of the Glendale Civic Center, the Bead Museum, and the Gaslight Park Hotel demonstrate that downtown Glendale is transitioning into an increasingly upscale Valley tourist destination. While technological enhancements, employee issues and downtown development have been highlighted, they are only a few of the many goals adopted by the Mayor and Council this year. Additional commitments include: • $200,000 to complete the final phase of the storm sewer project from 65th to 67th Avenues at Paradise Lane. • $250,000 to accelerate the Street Scallop Improvement Program. • $200,000 to complete the West Area Development Plan and the General Plan update. • Creation of a $1,000,000 "Opportunities Account" that would enable the City to take advantage of special, unanticipated opportunities to foster economic development. • $50,000 to study alternatives for greenscaping, irrigation improvements, and future development of recreational facilities in Thunderbird Paseo Linear Park. • Addition of $100,000 to the existing $250,000 currently allocated for the City's right-of-way beautification program. • Establishment of a Transit Reserve Fund with a start-up contribution of $150,000. • $300,000 this year (continuing for ten years) to repay debt for the construction of freeway sound walls where none have been constructed. The total funding may not be necessary, depending upon the outcome of ongoing negotiations with the Arizona Department of Transportation (ADOT). • Development of an ongoing property tax reduction policy that complies with the State's Truth in Taxation requirement. The clear direction the Mayor and Council have provided staff, along with the necessary funding and staff resources, will make it possible to achieve each and every one of these goals. 8 The Fiscal Year 2000-2001 budget will accommodate several new programs and continue to support existing programs: • With the adoption of this year's budget, Glendale's long-awaited curbside recycling program is now fully funded, equipped, staffed and on track to begin its phased-in operation. Collection in the first area will begin July 10, 2000, with full implementation of the City-wide program by Thanksgiving. An extensive public information campaign is underway to inform citizens of the implementation schedule. • The City's strong commitment to Glendale's neighborhoods continues in Fiscal Year 2000-2001 . A recent organizational study by Shannon and Associates recommended that Dr. Vanacour consolidate all neighborhood- related departments under one newly created Deputy City Manager position. Preliminary plans for this reorganization are in process and the additional Deputy City Manager position is funded in this year's budget. This change will help the City better coordinate all neighborhood functions, enabling it to be more responsive to community needs and concerns. Thanks were expressed to the Mayor and Council for once again providing the clear policy direction necessary to help the City carry out their goals and prepare a balanced budget that can be presented to the citizens of Glendale. Dr. Vanacour receives accolades almost every day from Glendale residents about the quality of City services and the employees who work so hard to deliver them. The Mayor and Council reflect the citizens' desires and it is evident that they respect and appreciate the job being done for them. City employees at all levels of the organization were thanked. If they did not take such pride in their jobs, Glendale would not be the vibrant community it has become. What the City's employees do for the Mayor and Council and for the citizens is very much appreciated. Dr. Vanacour acknowledged that Mr. Charlie McClendon, Budget Director, has done a wonderful job guiding the City through the budget process once again. His knowledge and professionalism ensured a smooth, surprise-free process. Thanks were also expressed to Mr. McClendon's staff and the budget liaisons who contribute countless hours assisting and learning about the budget process. Dr. Vanacour said that his Leadership Team assisted him immensely by providing their professional expertise and insight. He added that the Leadership Team's honesty and perceptiveness while making the difficult choices necessary in balancing the budget proved invaluable to him. 9 Dr. Vanacour said that, at the beginning of each annual budget process, he wonders how the City can possibly tackle all of the challenges that it faces but, by the time the Mayor and Council formally adopt the budget, he wonders why he ever questioned the City's ability to succeed. Once adopted, the budget document becomes the City's guide for accomplishing the Council's goals. It directs the City towards success and Dr. Vanacour said he was always proud of its achievements. With the guidance of the Council, Dr. Vanacour is certain that this year many new accomplishments will be added to the City's ever- growing list. The recommendation was to conduct a public hearing, waive reading beyond the title and adopt a resolution accepting the preliminary budget for Fiscal Year 2000-2001. Mayor Scruggs opened the public hearing on the Fiscal Year 2000-2001 budget. As no comments were made, she closed the public hearing on this item. Resolution No. 3382, New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, ADOPTING THE ESTIMATES OF THE AMOUNTS REQUIRED FOR THE PUBLIC EXPENSE FOR THE CITY OF GLENDALE FOR THE FISCAL YEAR 2000-2001; ADOPTING A TENTATIVE BUDGET; SETTING FORTH THE REVENUE, THE AMOUNT TO BE RAISED BY DIRECT PROPERTY TAXATION FOR THE VARIOUS PURPOSES; AND GIVING NOTICE OF THE TIME FOR HEARING TAXPAYERS FOR FIXING THE TAX LEVIES. It was moved by Eggleston, and seconded by Lieberman, to pass, adopt and approve Resolution No. 3382 New Series. The motion carried unanimously. NEW BUSINESS 4. PUBLIC HEARING TO INCREASE IMPACT FEES Mr. Ken Reedy, Deputy City Manager, presented this item. Impact fees are one- time charges to developers that are used to offset the costs resulting from new development. In 1994 the City undertook an impact fee study that was completed and implemented on February 1, 1997. In 1999, the City Council approved the contract to have Tischler & Associates review the previous study and make recommendations for expanding the fees to recover the actual cost of development incurred by the City. Tischler & Associates has completed the study and recommended changes to the fees and the addition of a category for general government. Council reviewed the recommendations on March 21, 2000 and directed staff to start the process of adopting the new fees. 10 Arizona State law requires that, prior to increasing impact fees, the City needs to follow several required steps. The first step is to pass a resolution stating the City's intent to increase impact fees, which the City Council did on April 11, 2000. The second step is to publish a notice in the Glendale Star setting the date of a public hearing regarding the new fees. The third step is to hold a public hearing at least thirty days after the resolution of intent to increase impact fees that is also at least twenty days after the public notice published in the Glendale Star. This was completed with this public hearing. The fourth step is to adopt an ordinance changing the impact fees at least fourteen days after the public hearing and set the effective date of the new fees at least 90 days after the ordinance is adopted. The recommendation was to conduct a public hearing on impact fee increases on June 6, 2000. Mayor Scruggs opened the public hearing on Agenda Item No. 4. Mr. Mel Smith, a resident of Maricopa County, Arizonas submitted a public hearing speaker's card indicating that he was both in support of and opposition to this agenda item. He said that he was a resident of Maricopa County and owned a handful of properties in the City of Glendale Ocotillo District. He expressed his concern that increased impact fees in the downtown area would deter people from building in this district. He asked that the Council not impose impact fees on this district so as to encourage infill development. Mayor Scruggs closed the public hearing. Mayor Scruggs directed Mr. Ken Reedy, Deputy City Manager, to send Mr. Smith some information in response to his comments. Mayor Scruggs stated that this item was presented for a public hearing only and that no action needed to be taken. CITIZEN COMMENTS No requests to speak were received. MOTION TO EXCUSE COUNCILM EMBERS McALLISTER AND SAMANIEGO It was moved by Eggleston, and seconded by Goulet, to excuse Councilmembers McAllister and Samaniego from tonight's meeting. The motion carried unanimously. 11 COUNCIL COMMENTS AND SUGGESTIONS Councilmember Lieberman stated that he was impressed with the City of Glendale's $83,425,000 bond sale capacity. Councilmember Martinez noted that residents in the Cholla District have been having a series of recycling parties and that the last one would be held this week at Hillcrest Park from 5:00 to 7:00 p.m. ADJOURNMENT There being no further business, the meeting was adjourned at 6:15 p.m. 0° a Pamela • iveira - City Clerk 12