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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 4/23/2002 (3) * PLEASE NOTE: Since the Glendale City Council does not take formal action at the Workshops, 'Workshop minutes are not approved by the City Council. MINUTES GLENDALE CITY COUNCIL BUDGET WORKSHOP SESSION 5850 West Glendale Avenue April 23, 2002 8:00 a.m. PRESENT: Mayor Elaine M. Scruggs, Vice Mayor Thomas R. Eggleston, and Councilmembers Joyce V. Clark, Steven E. Frate, David M. Goulet, H. Philip Lieberman, and Manuel D. Martinez. ALSO PRESENT: Ed Beasley, City Manager; Terry Zerkle Assistant City Manager; Rick Flaaen, City Attorney; and Pamela Oliveira, City Clerk. FISCAL YEAR 2002-2003 BUDGET PROCESS CITY STAFF PRESENTING THIS ITEM: Mr. Charlie McClendon, Budget and Research Director; and Ms. Candace MacLeod, City Auditor This was the fourth scheduled City Council workshop to review the proposed Fiscal Year 2002-03 Annual Budget. The City Manager's Group, Public Works Administration, Field Operations, City Clerk, City Attorney, and City Court presented their proposed departmental budgets at today's Workshop. In an effort to follow the City's new business model, staff will be continuously reviewing and evaluating how funds are being spent and ways to operate more efficiently as an organization. Staff identified possible items for elimination in the Fiscal Year 2002-03 budget and presented the items to the City Council today. The November City Council Goal-Setting Retreat was the first step in the Fiscal Year 2002-03 budget process. At that meeting, staff presented the Five-Year Financial Forecast for the City and the Mayor and Council discussed the national and local economies and their effect on Glendale's Fiscal Year 2002-03 budget. Due to economic uncertainties caused by the state budget shortage and the national impact of September 11th, staff advised the Mayor and Council that the City would have limited resources in Fiscal Year 2002-03 to fund additions to the base budget. A petition to repeal the Glendale food sales tax was submitted to be included on the General Election ballot in May of 2002. Staff estimated that the food sales tax repeal would result in a $4.7 million revenue loss to the City. Staff was directed to prepare two possible budget scenarios. Since, at this time, the food sales tax initiative was removed from the ballot, staff presented only one budget scenario. 1 -i(po eq} of aseaaou! ue luasaadaa lou scop 1! `eo!ilQ s,aoT!pny APO aid u! saaAoldwa to aagwnu eq seseaaou! 1! al!UM 'jeil pales aH s,aol!pny '1-!O of woo s,aa6eue4 A1!3 aU� woa1 paaaalsuea} seen uo!}!sod e pau!eldxe uopualOon •aw •saaAoldwe aw!}-Ilni Jo aagwnu a!agi Buiseaaou! sem juawiaedaa s,aoppny AuO a'i I! wise s66naog aoAe j •angoafgo ue se sasn saoppny lewa}ui }o ammsui eql ip!qm saanseaw aouewaoped auo s! 1! palejs poo-oe[j •sib! •an!loafgo ue paaap!suoo aq pinoo lane! lsag6!U eqI o1 6u!laodeJ nnoq pauoQsenb zeu!1JelAI aagwewllounoo •uo!lez!ue6ao ue u!gpM lane! }seg6!U eqj of papodaa s! eleinooe aaow aq of spual uo!}ewaolu! eels spaepuels leuo!ssapad }end pau!eldxe poeioen •spj `uo!lsenb s,zaupe j aagwewllounoo o1 asuodsaa uI •algel!ene spew ale spode.' 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Iudy pue `6 lady `3 Indy uo sclogsNaoM ia6pnq eajgi 1sa!I eql paionpuoo HounoO Auo pue aoAeIN eql •Aaesseoeu I! `paleu!w!Ie aq pinoo tell sao!naas ao/pue swea6oad Amuap! speaq ivawJedap paioaa!p aa6eueV A1!3 eql •speau ja6pnq £0-z0O3 JeaA leos!d re!puasse aanoo of puny Ie,iaueo aqi o} pawn}aa uaaq aneq win spunl ia6pnq aseq 6u!obuo ui uo!II!w z i.$ pe!)t!Ruep! `saeeA anis Ised eql aano spaooaa JeAoAJaeo uo peseg Intergovernmental Relations Mr. McClendon reported a base budget of $359,880 for this department, with no carryover and one supplemental request for $94,500. Ms. Amy Duffy, Director of Intergovernmental Relations, reviewed the department's accomplishments for the past year. She said the $94,500 supplemental request was for Council redistricting. She explained that the City of Glendale is required, by City Ordinance, to redistrict every ten years. She noted that the last redistricting occurred in 1996. She said, since that time, the City has experienced a 19.82% growth increase. She recommended that the redistricting plan be conducted beginning in July of 2002, allowing it to be completed 13 months prior to the 2004 primary and general elections. Ms. Duffy clarified for Mayor Scruggs that, although the contract states that National Demographics will complete its work by October 31, 2002, it is being moved up by one month. Councilmember Frate commended Ms. Duffy on Neighborhood Day which was held at the State Legislature. He said the City of Glendale is always well represented. Mayor Scruggs stated that the City needs to do everything it can to help citizens understand the legislative process. With regard to the Luke Air Force Base legislation, Mayor Scruggs congratulated and recognized Ms. Duffy and the City's legal team on their achievement. She noted that they have had to overcome many obstacles. She said the City might not have lost the northern departure corridor from Luke Air Force Base had similar legislation been introduced at the beginning of the decade. Mayor Scruggs said the City is going to make the value of the legislation known. She pointed out that it will be used as a national model for other cities that have military bases. Councilmember Martinez asked if the City had any information concerning Luke Air Force base on its web page. If not, he suggested that they include a brief history of Luke Air Force Base and information concerning the legislation. Ms. Duffy said the City has a link to the Luke Air Force Base web site. She agreed, however, that additional information should be included on the City's web page. Vice Mayor Eggleston agreed with Mayor Scruggs that Ms. Duffy and the legal staff should be recognized for their efforts. Councilmember Clark also thanked the Intergovernmental Relations and legal staff for their efforts. She said the value of the legislation cannot be understated in that it has identified lands that need to be protected to preserve Luke Air Force's mission. She asked if there was any hope of obtaining funding to secure the lands in the upcoming legislative year, given the state's economic condition. Ms. Duffy explained that there are some leasing versus buying issues in the add preserve and some private interests are working on the possibility of securing land. She said she believed a lot of effort would be expended this summer to determine how best to resolve the southern departure corridor. Mayor Scruggs noted that a Department of Commerce study is currently underway to identify land with compatible uses. She said a study is also being undertaken by some of the cities to further identify property owners and the relevance to the southern departure corridor. She reported that the coalition she led had various subcommittees, one of which was charged with researching the issue of legislators voting to appropriate dollars to lease development rights in an open-ended lease. She said there are very 3 serious issues wit the Agriculture Preserve concept. She explained that landowners would be in charge of determining who gets money and landowners could opt in and out as they desire. She said they were looking at other options that would be much longer term and include a buy-back option. She said it was also suggested that the City should buy the land, regardless of the fact that it is not located in the City. She stated that a subcommittee was formed to look at the legality of such an arrangement. Mayor Scruggs asked if Senate Bill 1129 was still alive. Ms. Duffy responded that it was. She explained that Senate Bill 1129 provides for land exchanges from a private party to the Bureau of Land Management (BLM) and then from BLM to other governmental entities. She said that would begin in November of 2002 if voters approve SCR1004. Mayor Scruggs commented on the complexity of the issue. She stated that it has been ongoing for a number of years. She said the Luke legislation is key because it identifies compatible uses for all lands in the vicinity of a military airport. Vice Mayor Eggleston said most of the West Valley mayors have been working on the legislation for a long time. He encouraged citizens to learn more about this complicated issue. Councilmember Martinez mentioned soil banking. He asked if the federal government offers a similar program that would help in this situation. Ms. Duffy said they had asked the Congressional Delegation Offices and found that research was being done, She noted, however, that funding was not possible at that time. She said she would check again because she believed they were starting to feel pressure from local communities. Mayor Scruggs said Senator John McCain offered federal assistance once all local resources were exhausted. She noted that they were in the process of identifying those local resources. She noted that the Coalition has set a timeframe of less than one year. She stated that the Alan Maguire study identified the true value of all military installations throughout the state, and not just Luke Air Force Base. She said the results of the study should be available in early May of 2002. She explained that it was delayed by the September 11th terrorist attacks. Human Resources Mr. McClendon stated that the Human Resources Department has a base budget of $15,856,506, a majority of which is in the Employee Benefit Internal Service Fund and the Worker's Compensation Trust Fund. He reported carryover requests totaling $230,006 and one supplemental request for $100,000. Ms. La Verne Parker-Diggs, Human Resources Director, reviewed the department's accomplishments for the year. She identified the following carryover requests: Long- Term Disability - $45,758; Employee Development - $86,191; and the Compensation Program - $98,057. She explained that the Long-Term Disability amount is an estimate because it is difficult to determine the number of individuals that will participate in the program. She said the Compensation Program request is for continued implementation of the compensation study and training that will occur once the program is online. Ms. Parker-Diggs stated that the supplemental request for $100,000 in one-time funding would be used to fund the Education Assistance Program. She noted that the number of participants has doubled this year, at a potential cost of $424,000. She said the program is ani:icipated to cost $225,000; however they are looking at reducing the budget to $200,000 by reimbursing at the state school tuition level of $126 per credit hour rather than a private college tuition level. She said they were also considering not paying student activity fees. 4 Councilmember Clark asked if they anticipated getting the additional $100,000 needed to fund the Education Assistance Program through the Police Department again. Mr. McClendon explained that the base budget already includes $100,000 and the one-time supplemental request would bring the total for the program up to $200,000. Mayor Scruggs said they were initially told the program costs would decrease because the number of students taking advantage of the program would peak and then start to decrease. She asked if they had made a final decision as to the reimbursement level and if employees share in the costs at all. She also asked where the program factors into the total compensation package. Ms. Parker-Diggs stated that they had decided to implement the cost saving measures in the next fiscal year. She stated they do not consider the Education Assistance Program as a major part of the compensation package. She explained that the City provides up to $2,000 per year; therefore a student wanting to attend a private college would have to supplement that amount. She said a study they had conducted found that the City of Glendale's reimbursement cap was lower than in some other Valley cities. She noted that one city offers as much as $5,000. She said, however, they believed $2,000 was appropriate and consistent with most valley cities. Mayor Scruggs asked if the students would be responsible for the student activity fees. Ms. Parker-Diggs replied in the affirmative. She noted that they would also pay for books. Mayor Scruggs asked if the compensation study looked at the program's value to employees. Ms. Parker-Diggs said this had not been done as yet. She noted that the program is growing. She said they were starting to track the results of those who have graduated from the program and preliminary findings indicate that the employees tend to remain and promote within the organization. Mayor Scruggs pointed out that when they were doing the dual budget and thought they would possibly lose the food sales tax revenue, ongoing training for employees was one of the first items cut by departments. She expressed concern that it was being recommended that the City increase funding to allow its employees to go to school outside the City when the departments were so willing to cut employee-based training programs. Councilmember Clark asked how they could relegate the program as a major or minor portion of the Compensation Study when its relative value to employees has not been identified. She expressed her opinion that every perk offered, beyond salary and benefits, is considered compensation and should be included in the Compensation Study. Ms. Parker-Diggs explained that they were just starting to evaluate the program to see what changes should be made and how it compares to programs offered in other parts of the Valley. She said they could further research the value employees place on the program. Councilmember Clark asked if employees would be required to reimburse any amounts paid if they quit a class prior to its completion. Ms. Pamela Hile, Human Resources Organizational Development Coordinator, explained that they require a grade of B or higher for a Master's level class and C or higher for a Bachelor's level class. She said reimbursement occurs after employees complete their course and submit their grades. Mayor Scruggs expressed her disappointment that the Compensation Study did not consider the Education Assistance Program as a part of the compensation package. She questioned what employees would say about the program's value when faced with rising insurance costs. Mr. Beasley noted that two cultural audits were conducted, both of which identified training and education as high priorities. He said the program could be included in the compensation package if the Council directed staff to do so. Mayor Scruggs said the value that employees place on the program might be different if it comes at the expense of other benefits. She said she would like employees to rank all of the available employee compensation components. 5 Councilmember Clark agreed that it would be easier to determine the value of each compensation component if employees were asked to identify the services they would choose if given limited resources. Councilmember Martinez asked if there were 212 participants per semester or for the year. Ms. Parker-Diggs said there were 212 separate individuals enrolled in the program last year, several of whom took multiple courses. Councilmember Martinez asked if there was a limit to the number of years an employee could participate in the program. Ms. Parker-Diggs said there was no limit. She pointed out that, based on their area of study, an employee could be in the program for a number years. She explained that the City originally reimbursed students for book costs as well, but will no longer do so effective this coming fiscal year. Councilmember Martinez asked what community colleges charge per credit hour. Ms. Parker-Diggs stated community colleges charge $44 per credit hour. She noted that they were encouraging first time college students to attend Glendale Community College. Mayor Scruggs agreed that first time students should be guided to enroll at Glendale Community College. She asked what the base budget will be from this point forward. Mr. McClendon stated that the base budget will remain at $100,000, because the request is being funded as a one-time addition. He said the one-time funding will allow them to analyze the program and determine the effect of the cost saving measures being put into place. He stated that they would be in a better position next year to determine if the base budget should be increased. Mayor Scruggs asked if it was the City of Glendale's administrative policy that you could not be promoted above a certain level without a master's degree. Mr. Beasley said that was true for certain positions. Mayor Scruggs stated that that the City's administrative policy was driving employees to utilize Education Assistance Program. Mr. Beasley stated that those positions requiring a master's degree are typically department head level positions. He said a similar education would be required for comparable positions both within and outside of the City. Mayor Scruggs stated that she was aware of other positions within the City where certain degrees are required, even though other types of knowledge would serve the employee better than a degree. She said the issue should be looked at differently if the City's administrative policy prevents people who cannot afford an education from progressing through the organization. She noted that education assistance programs are considered compensation in the private sector. Councilmember Lieberman stated that the City owes its employees the right to get an education. He noted that most private sector companies offer a similar program. He said he would like to see the item stay in the budget. He expressed his opinion that it should be management's decision as to which positions require a higher level of education. Councilmember Clark stated that the program is a form of compensation and should be considered as such by the City. She said in order to intelligently determine what allocation should occur in an annual budget, the Council needs to know what the City values as compensation. Ms. Parker-Diggs said they were working on presenting the total benefits program in the future. She clarified that the City considers the Education Assistance Program part of its compensation package. She noted, however, that the consultants were not asked to look at it as part of the Compensation Study. She said they would look at the value employees place on the program. Councilmember Goulet said he considered the City's Education Assistance Program essential to keeping the City's staff competitive with the private sector. He stated that others would like to participate in the program, but are unable to do so due to time 6 constraints or other responsibilities. He acknowledged that some employees leave after receiving their education. He said it happens all the time in the private sector. He said he would hate to see the City limit the program because it was the City's educated staff that led the City of Glendale to its leadership position. Mayor Scruggs said they were obviously making progress in bringing costs under control and she looked forward to looking at it as part of the total compensation package. She stated that she would never support the Education Assistance Program over employee-based training. She asked how the Human Resources Department measures how they are viewed by external customers. Ms. Alma Carmicle, Deputy Director of Human Resources, said they had started sending customer surveys to internal hiring managers and were in the process of developing a survey that will be placed in the lobby and on the Internet for applicants outside the City. Mayor Scruggs asked what the desired outcome was that they were looking for. Ms. Carmicle said the desired outcome would be that 100% of all applicants and people requesting information felt they were treated fairly and in a timely manner. She said, more realistically, they would expect that at least 80% of their customers were happy with the service they received. Economic Development Mr. McClendon reported a base budget for the Economic Development Department of $662,337 with one carryover item for 1 ,530,270. Mr. Jim Colson, Economic Development Director, stated that the Economic Development Department had a good year. He reviewed the department's accomplishments. He said their objectives include: (1) enhancing new business attraction efforts through targeted strategic planning and marketing; (2) partnering with leading site developers to create new real estate development opportunities; (3) stabilizing and adding value to under-performing industrial and retail properties throughout the City; (4) working closely with existing businesses to retain and expand their operations; and (5) solidifying and improving research and communication process and deliverables. He stressed the need to sustain and enhance the City's economic vitality to create the best possible economic future for its citizens. He said they continually re-analyze their business practices. Councilmember Martinez asked Mr. Colson to discuss the challenges they face in terms of vacant commercial buildings. Mr. Colson stated their first objective is to find another user that can utilize the vacant facility, or, failing to do that, they would look at an adaptive re-use of the facility. He said if the building cannot be used or an appropriate adaptive re-use cannot be found, they would look at the overall site development. He discussed the specific example of the big box stores located at 55th Avenue and Bell Road. Councilmember Clark said big box stores are a nationwide issue. She noted that the City also has a number of vacant grocery stores. She pointed out the fact that they are the anchor for many neighborhood shopping centers. She asked if Costco was still under lease for its vacated building. She said, if it was, it would be difficult to redevelop the facility. She said she believed the department's objective to re-use big box facilities within six months of their being vacated was extremely ambitious and unrealistic. She asked how they intended to reach their desired outcome. Mr. Colson acknowledged that the objective was overly ambitious. He explained that it was their intent to work with developers, landowners, and real estate brokers to begin removing impediments to the building's re-use prior to the facility being vacated. Councilmember Clark asked if 7 they would also work on vacant grocery stores. Mr. Colson said they continued to look for similar uses or adaptive re-uses for those sites. He stated that their goal was to rid the City of vacant facilities that are under-performing and generating blight. Councilmember Clark noted that there are no longer any grocery stores in her district. Mayor Scruggs said the City had been given a lot of notice before ABCO went out of business. She noted that ABCO chose to sell its stores to companies that already had stores in the area of 67` Avenue and Beardsley Road. She pointed out that certain shopping centers do not meet modern configurations and have not been well maintained. Councilmember Lieberman thanked Mr. Colson for bringing new businesses into his district. He asked if the Economic Opportunities Fund had any pre-existing draws against it. Mr. Colson said there was a $1.5 million carryover in the Economic Opportunity Fund but, at this point, a great majority of the money is obligated to projects. Counci"member Lieberman asked if they were replenishing the fund. Mr. Colson stated that they did not replenish the fund this year given budget constraints. He emphasized the fact that the fund is not used to bribe companies to locate to the City of Glendale, as some detractors have commented. He explained that they always look first to ensure there is a substantial return to the City and a public benefit. He noted that all of the funds used have gone back into the City through the repayment of impact fees. Councilmember Lieberman asked where they would get the necessary funds to relocate businesses along Glendale Avenue when it is improved. Mr. McClendon stated that a number of resources exist should they be necessary, including the use of contingency dollars. Councilmember Lieberman explained that his concern was due to the fact that the City has made commitments to some of the companies. He said he was in favor of replenishing the Economic Opportunities Fund. Councilmember Goulet asked how they intended to meet their objective to net 100 new jobs in the downtown area, which is primarily comprised of small businesses that have a limited number of employees. He also asked how their plan matches up with the Downtown Redevelopment Plan. Mr. Colson said they believed the City Center Master Plan has addressed many of the issues. He explained that their first objective was to enhance the overall downtown region to encourage new investment. He said they had also recognized the need to work with developers to offer office space in the downtown area. He said people will be attracted to the downtown area because of its unique qualities. Councilmember Martinez said the City may have to consider demolishing existing vacant buildings to accommodate a company that is willing to invest in the City. Councilmember Clark asked about the objective to increase the effectiveness of the City Ombudsman's Office. Mr. Colson explained that the City Ombudsman Office was established to assist developers through the City's development process. He noted that it has been a successful program. Councilmember Clark asked if the City has a generic City Ombudsman's Office. Mayor Scruggs said the Mayor's Office and the Council's Office assistants fill that role. Mayor Scruggs asked why the Economic Development Department's budget decreased when it appears to be busier than ever. Mr. Colson explained that the primary reduction in the budget was due to the RNL City Center Master Plan contract. He said Economic Development and Redevelopment had a $25,000 base budget reduction and one full- time employee from Redevelopment was transferred into Economic Development. Mr. 8 McClendon explained that the $25,000 reduction in the Economic Development and Redevelopment Departments' base budgets were based on a five-year history of over- funding. Mayor Scruggs expressed her opinion that the policy is wrong at this point in time. She stated that the Economic Development Department did not use its entire budget in the past because efforts to prime the City for economic development were underway. She said, now that the City is well positioned and economic opportunities abound, their budget is being reduced. She asked how much was available in one-time funds for Fiscal Year 2002-03 and how were the funds used. Mr. McClendon said $2.3 million of the one-time money was used for the required payment on the Hickman property and $1.5 million went back into the Contingency Fund. He noted that there was not as much one-time money available this year because they did not have excess revenues coming in at the end of last year and because salary savings went to cover the state-shared sales tax reduction. Mayor Scruggs restated her position that it would be a poor policy move to diminish economic development at this point in Glendale's history. Mr. McClendon said, should the Council so choose, Economic Development expenditures could be taken out of the Contingency fund. He noted that some economic development bonds were still available for public infrastructure. In response to Councilmember Martinez' question, Mr. McClendon explained that two years ago they were required to make a payment of more than $4 million as a result of a lawsuit. He said that money was taken out of the Contingency Fund and it was decided that a $1.5 million payment would be made each year for three years to repay that amount. He said this year's $1.5 million payment represents the second payment. Councilmember Martinez asked what the balance of the Contingency Fund was. Mr. McClendon answered that the balance was $10,690,000. Councilmember Martinez asked if the Contingency Fund has to be maintained at a certain level. Mr. McClendon said the City's target is to maintain 10% of one year's worth of General and Street Fund revenues. He noted that they are $1.5 million short of that 10% target because the third $1.5 million payment will not occur until Fiscal Year 2003-04. Councilmember Martinez expressed his opinion that $1 million should be returned to the Economic Development Fund. Councilmember Lieberman asked if the City could tap into the Contingency Fund if it found it needed matching funds to bring businesses to Glendale and, if so, how much could be drawn dcwn. Councilmember Clark questioned how the Economic Development Department could hope to meet its objective to eliminate big box vacancies if its budget was reduced by 43% and a full-time employee was taken away from that effort. She said it was time to focus on redevelopment and reducing the department's budget would not serve the City's interest or the interests of its citizens. She said the City would not be able to respond in a timely manner to future opportunities if it had to get approval to use contingency funds. She suggested that the Council revisit the issue at the April 30 meeting. Mayor Scruggs asked Mr. McClendon if the Fiscal Year 2002-03 budget was built on the assumption that the City would get the $13 million back from the Ellman Companies or if it would be new money available for use. Mr. McClendon stated that the Fiscal Year 2002-03 budget was built under the assumption that the investment money would come in, with part coming from the exact sale and part coming from a financing mechanism that could be put into place. Mayor Scruggs asked how the debt payments would be made if the financing mechanism was put into place,. Mr. McClendon stated that the payment would not be required until Fiscal Year 2003-04 and would be built into that budget. Mayor Scruggs asked where the $13 million would go if it was 9 returned to the City. Mr. McClendon stated that it would go back into the General Fund. He confirmed that the $13 million was built into the Fiscal Year 2002-03 budget and would not be considered new money. Mayor Scruggs asked if payments on the financing structure were built into the budget. Mr. Art Lynch, Finance Director, stated that they were not built in because they wanted to see if they would receive some payments from development activity. He explained that, while the financing would go into place during the proposed operating year, the payments would not start until the next fiscal year. Mayor Scruggs asked what an annual payment on $13 million would amount to. Mr. Lynch said it would be approximately $1.5 to $1 .6 million when payments begin. He noted, however, that money would come in from the sale of pads and sales taxes as development occurs. Mr. McClendon stated that they ran worst case scenarios, but did not anticipate having to finance the full amount. Mayor Scruggs stated that they needed to look beyond the immediate year to determine what ramifications their actions might have on future budgets. Councilmember Lieberman noted the developer is allowed to borrow the money that comes in from the sale of property. He said, therefore, the City cannot be guaranteed any monies until the development is funded. He pointed out that the City will also be making debt service payments on at least a portion of the $150 million in bonds for the stadium. He asked Mr. Lynch for a payment table to help him better understand the City's commitments through Fiscal Year 2030. Mayor Scruggs summarized by stating that the Council was not happy with the Economic Development Department's budget. She said she felt it was insufficient to accomplish the department's goals. She stated that the redevelopment of Manistee Town Center into Northern Crossings was an extremely critical issue and there would be serious impacts to the City if it did not happen relatively soon. City Manager's Office Mr. McClendon said the City Manager's Office has a base budget of $707,993, with no carryover or supplemental requests. He reviewed their accomplishments for the year. Community Action Program Mr. McClendon explained that this is a grant-funded program, with a base budget of $311,707. He stated that the program's supplemental request does not require funding because it will be supported by grant money from Maricopa County. He said, however, that it requires the Council to approve a part-time position that would provide services to clients requesting assistance. Mayor Scruggs asked if the Community Action Program's staff was decreased. Ms. Norma Alvarez, Community Action Program Administrator, said their staff is the same as it was when the program was established, with the exception of one position that was transferred to the Revitalization Program in 1996. Mayor Scruggs asked what duties the part-time position would handle. Ms. Alvarez said the person in that position would take care of the homeless program. She confirmed that the position would not decrease their case load. Mayor Scruggs asked what would happen if the funding did not come through. Mr. McClendon said the City would have two options: (1) to not add the position; or (2) to increase the transfer from the General Fund to cover the cost. Mayor Scruggs pointed out that during difficult economic times, the number of people needing assistance increases. She said she did not see the City providing the necessary resources to address that increase. She stated that she was troubled by their lack of attention to providing additional resources for the Community Action 10 Program. She noted that last year's request for assistance had not been met. She stressed the fact that she had not been contacted by anyone in the Community Action Program, asking her to advocate for the program. She said the City does many good things, but it has failed to address the increased needs in certain vital areas. She expressed her opinion that the City should dedicate more resources to areas where staff is trying to help the increasing number of people in need. Councilmember Clark agreed with Mayor Scruggs. She stated that the City is allocating fewer resources to the most disadvantaged and economically depressed segment of the community in favor of "fluff". She said she would like to see the City focus on what it can do to support that element of the community. Councilmember Goulet said the challenges of the Community Action Program are not based solely on the economy, but also on the fast growth that the City of Glendale has experienced. He commended Ms. Alvarez and her staff on doing a remarkable job. He stated that they have had huge successes. He said he would also support the Community Action Program having an adequate funding source. Councilmember Martinez said he also supported the program being sufficiently staffed. He pointed out that it is often those who are closest to being on welfare that are laid off first during economic downturns. Mayor Scruggs said people who have never been without a job are now finding themselves unemployed, thus creating a whole new client base for the department. Councilmember Frate noted that the City Manager transferred a half-time individual to the Community Action Program last year. He agreed that the department needs additional resources. He asked Mr. Beasley if he was waiting for Council's direction to reallocate the necessary funds. Mr. Beasley said he would talk with Ms. Alvarez to discuss her needs. Councilmember Frate expressed his opinion that the department does an excellent job and its programs are a benchmark for other communities. Councilmember Clark stated that she would prefer increasing the Community Action Program's personnel to hiring a Diversity Coordinator because she believed it would serve a greater need. Councilmember Clark asked if it was premature to allocate money for Compensation and Appraisal training if they were just beginning to implement the Compensation Study. Ms. Parker-Diggs said it was not premature. She explained that they would begin implementing the Compensation Program once it had gone before the Council. The meeting recessed for a short break. Mayor Scruggs announced that, due to prior commitments, the meeting would adjourn at 11:45 a.m. She said any items remaining would be discussed at the April 30 Budget Workshop. 11 Public Works Group Public Works Administration Mr. McClendon reported a base budget of $170,181, with a $522 carryover item and no supplemental requests. Councilmember Martinez asked if any funding had been allocated to security with regard to water quality. Mr. Reedy stated that staff was applying for an Environmental Protection Agency grant for an assessment of the City's water operations. Environmental Resources Mr. McClendon slated that the Environmental Resources group has a base budget of $51,000 to be used for hazardous materials incident and cleanup. Field Operations Mr. McClendon stated the General and Street Fund portion of the Field Operations budget totals $17,282,370. He said they had a carryover of $124,000 and supplemental requests totaling $333,000. Mr. Reedy explained that the carryover consists of an oil distribution truck costing $113,000 and an $11 ,000 replacement charge. He identified three supplemental requests: (1) upgrading the Employee ID Badge System - $25,000; (2) upgrading the Security System in three Public Safety buildings - $300,000; and (3) a security and utility increase at the Manistee Ranch Historic property - $8,000. Councilmember Clark asked who was responsible for handling loose trash complaints. Mr. Reedy said an inspector provides a notice to residents who are in non-compliance and gives them seven days to correct the situation. He said a courtesy cleanup is done after the seven-day period if it is the resident's first offense. He added that subsequent violations result in the resident being given one day to correct the situation and, if they did not comply, they would be charged a $99 fine on their water bill. Councilmember Frate said the City needs to do a better job of educating the public on loose trash regulations. Mr. Reedy stated that collection times are published in the newspaper on a quarterly basis, in the Connection newsletter, and on the City's web site. He said residents can also call Public Works to find out their collection date for the month. Councilmember Frate stated that the loose trash program has helped reduce blight throughout the city. Mayor Scruggs noted that other cities only collect loose trash every three months. She asked how those cities prevent their citizens from leaving trash out the entire time. Mr. Mike Hoyt, Director of Field Operations, stated that the City of Phoenix has a lot more alley service. He noted that trash is often left in the alleys for the entire three-month period. Councilmember Goulet said he was chairing a committee that is looking at several code issues, including loose trash. He noted that some citizens feel it is cheaper to pay the City's fine than to hire a crew to remove trash from their property. He said they would go out for public input once they had created a list of items to address. 12 Councilmember Lieberman asked about money to replace the office that burned down a couple months ago. Mr. Hoyt stated that this was an insurance matter. He noted that they had temporarily relocated those offices into a modular building. Councilmember Lieberman pointed out the fact that the City is self-insured. He stated that two trucks were also destroyed within the last 60 days. Mr. Hoyt confirmed that the trucks would have to be replaced. He noted that replacement money is budgeted in the Sanitation Department budget. He explained that they would likely reduce their spare ratio since they have been cn an aggressive replacement schedule. Councilmember Lieberman asked where the Equipment Replacement Fund was listed. Mr. Reedy stated that the Sanitation Fund budget was reviewed at a previous Council Budget Workshop. Mr. McClendon stated that the City carries insurance policies on its properties, buildings, and large pieces of equipment. He explained that a loss like that is typically replaced immediately out of the Risk Management Trust Fund, which is then repaid from the insurance settlement. Councilmember Frate asked if residential streets could be swept more often than the identified objective of once per month. Mr. Reedy stated that it could not happen much more than once a. month because they have not increased their street sweeping fleet and/or personnel for a number of years. He stated that air quality standards require that arterial streets be swept twice a month. Councilmember Frate noted that his neighborhood can look quite bad after two or three weeks. He also expressed concern about the dirt that accumulates around the curb on arterial streets. He asked if the City has a separate machine that sweeps along the curbs. Mr. Hoyt said the street sweeper picks up that debris; however, cars stopped at the stoplights kick material to the curb. Councilmember Frate asked how the cities clean the islands. He noted that they also accumulate a lot of dirt. Mr. Hoyt said the new regulations mandate that the City clean the center of the street, including all islands. He said this has increased the department's workload by one-third. Councilmember Martinez said he had received very few calls regarding street sweeping. He expressed his opinion that the City of Glendale has an excellent loose trash program. Councilmember Lieberman said the biggest problem he saw with regard to loose trash were the people who dig through the piles and scatter the trash around. He asked how many environmer ally correct street sweepers the City owns and how would the City go about getting another. Mr. Hoyt stated that the City currently has three environmental street sweepers and will be coming to the Council shortly for the purchase of two more. He noted that all of the sweepers were purchased through Maricopa Association of Governments (MAG) grant money. Councilmember Lieberman asked Mr. Hoyt to rate the sweeper's efficiency. Mr. Hoyt said the sweepers that the City will be buying are specifically designed for this part of the country. Councilmember Clark stated, while she had received very few complaints about street sweeping, the ones she did receive have been with regard to the dust created by the sweepers. She asked if the street sweepers use water and, if so, how much water does one street sweeper hold. Mr. Hoyt stated that the older street sweepers use water to keep the dust on the street, but the new environmental sweepers are waterless. He stated that the sweepers have to fill their water tanks once a day. He noted that some areas have so much dust that the debris sweepers are basically ineffective. 13 Mayor Scruggs said she was very happy to see that the City was helping the Manistee Ranch Historic Property. Mr. Reedy explained that, in an effort to accommodate more people, they have expanded the parking lot and increased security. He said they have also added lighting, which results in increased electricity charges. Appointed Officials Group City Clerk Mr. McClendon stated that the base budget for the City Clerk Department totals $650,278, with one supplemental totaling $115,000 for the November 2002 Special Election. Ms. Pam Oliveira, City Clerk, reviewed the department's accomplishments for the year. She said their objectives for the upcoming year were: (1) to conduct the 2002 General Election and the Glendale 2025 Special Election; (2) to improve document procedures for contracts, intergovernmental agreements, and public records request processing; and (3) to provide City-wide training and assistance on Records Management Program procedures. She said their supplemental request was for the Glendale 2025 Election scheduled for November of 2002. Councilmember Clark asked about the objective that reads, "Official documents for major requests within "x" number of business days...". She asked what the "x" was intended to represent. Ms. Oliveira stated that the City Clerk's Department did not maintain all City records. She said requests have to be coordinated with other departments and they have not yet decided if a specific criteria time will be used. She noted that the average major request takes six days, while minor requests are often handled immediately. She said other cities do not indicate a definite deadline for major requests. Councilmember Clark asked if everyone within the City abides by a records retention policy. Ms. Oliveira explained that every department has a records retention schedule approved by her office and the State. She said the State requires that permanent records be kept in hard copy or on microfilm. She noted that the City does both. She stated that the requirements for other types of documents are not as strict. Councilmember Clark asked how much space was consumed by records retention. Ms. Oliveira stated that hard copy retention consumes the most physical space. She said she was working with the Information Systems Department to update the optical imaging system by the end of the year. She noted that the Finance Department has well over one million documents on the system. Councilmember Martinez expressed his opinion that the Department's desired outcome to achieve a 15% voter turnout was extremely low. Ms. Oliveira stated that it was based on previous experience. She noted that they were currently at approximately 12%. Mayor Scruggs asked about the advertising expense offered up as a way to reduce the City Clerk's budget. Ms. Oliveira stated that it is still in their budget and will be continued through next year. Mayor Scruggs asked if putting legal advertising out for competitive bid would result in lower legal advertising costs while reaching a broader audience. Ms. Oliveira said the Glendale Star is the only paper she was aware of that is published within the City and that is of general circulation, which is the criteria set forth by the City Charter. Mr. Flaaen stated that it would be possible to outsource the legal advertising if the City Charter was amended so it did not require a local publication. He said a certain distribution within the City of Glendale could be one of the criteria in the request for proposal. Mayor Scruggs said people often complain that they cannot find the Glendale Star newspaper and it gives the appearance that the City is 14 trying to hide its legal notices. She suggested that a newspaper with a broader circulation would be more effective. Ms. Oliveira noted that additional funding requested last year allows things of broad public interest to be advertised in newspapers with a larger circulation. She said they have also increased coverage in newspapers that target specific ethnic groups. Mayor Scruggs asked how the Glendale Star's advertising rates would compare to a newspaper with a broader distribution. Ms. Oliveira said the Glendale Star's rates have not increased in the past five or six years and are fairly low compared to other newspapers. She said, however, that other papers might lower their rates in a competitive bid situation. Vice Mayor Eggleston asked if legal advertising was included in the City Clerk's budget. Ms. Oliveira responded in the affirmative. Vice Mayor Eggleston inquired as to how much a general election costs. Ms. Oliveira stated that the average cost is $115,000. She said the City contracts with Maricopa County for the majority of its election services. With regard to 1 h City's challenge to the upcoming election pertaining to the proposition on hand counting ballots, Mr. Flaaen explained that the Court had determined that the issue should go through the election process first and then, if passed by the electorate in Glendale, it should proceed to the Court. He said, if passed by the electorate, they would seek judicial review to declare it invalid. He explained that it is the City's position that City of Glendale elections are governed by State Statute and that the City has to comply with that Statute. Mayor Scruggs said the Council would hold the April 30 Budget Workshop meeting, at which time they would continue with the City Attorney's budget and the City Court's budget. She said the Council would also re-visit outstanding issues, including the request for additional police, Economic Development and the Community Action Program. She stated that they would also review the budget in its totality. Councilmember Martinez said he would like to discuss sound walls at the April 30 Budget Workshop meeting. He asked staff to identify sources of funding that might be available. He said he would also like to discuss the food sales tax. He expressed his opinion that they should consider proceeding with an advisory ballot in November of 2002. Mayor Scruggs asked Mr. Flaaen to research the legality of placing the item on an advisory ballot. ADJOURNMENT The meeting was adjourned at 12:00 p.m. 15