HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 3/4/2003 * 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
CITY OF GLENDALE
CITY COUNCIL WORKSHOP
March 4, 2003
1:30 p.m.
PRESENT: Mayor Elaine M. Scruggs, Vice Mayor Thomas R. Eggleston, and
Councilmembers Joyce V. Clark, Steven E. Frate, David M. Goulet,
H. Phillip Lieberman, and Manuel D. Martinez
ALSO PRESENT: Ed Beasley, City Manager; Terry Zerkle, Assistant City Manager;
Rick Flaaen, City Attorney; and Pamela Hanna, City Clerk
1. COMMUNITY DEVELOPMENT ADVISORY COMMITTEE FUNDING
RECOMMENDATIONS FOR HUD FEDERAL GRANTS
CITY STAFF PRESENTING THIS ITEM: Ms. Gloria Santiago, Community Housing &
Revitalization Director, Mr. Gilbert Lopez, Revitalization Manager, Mr. John Turbridy,
Community Development Advisory Committee Chairman and Ms. Sue Ferrell,
Community Development Advisory Committee Vice Chair.
This is a request for City Council to review the Community Development Advisory
Committee's (CDAC) funding recommendation and to provide direction.
The CDAC recently concluded an extensive public participation process for the Fiscal
Year (FY) 2003-2004 Community Development Block Grant (CDBG) and Home
Investment Partnerships Program (HOME).
During a City Council Workshop on September 3, 2002, CDBG and HOME funding
priorities for FY 2003-2004 were discussed with John Turbridy, CDAC Chairman. The
Council requested that CDAC consider funding housing-related programs; projects for
the removal of blight; essential services such as domestic violence assistance,
employment services, and homelessness prevention; and programs for seniors and
youth.
The CDAC received 36 applications for CDBG funds and three applications for HOME
funds, and have made funding recommendations for the City Council's review.
CDBG
CDBG funds are to be used for activities that meet one of the three national objectives:
to benefit low- and moderate-income individuals, to eliminate slum and blight, and/or
1
activities that address an urgent community need.
For FY 2003-2004, the city will receive between $1.9 and $2.6 million of CDBG funds
from the U.S. Department of Housing and Urban Development (HUD). The exact
amount of funding will not be known until later this spring. In addition, $198,000 in
unspent CDBG funds from activities completed in prior years will be available to fund
Physical Improvement Activities.
The CDAC formulated their funding recommendations on the anticipated CDBG funding
entitlement of $1.9 million. The committee also formulated additional
recommendations, based on the potential increase in funding.
Fifteen percent of the FY 2003-2004 CDBG entitlement will be distributed to agencies
for Public Service Activities and 32% will be distributed to agencies for Physical
Improvement Activities.
Thirty-five percent of the entitlement will be utilized for housing rehabilitation programs
provided by the Community Revitalization Division. These programs include the Single-
Family Housing Rehabilitation Program, Roof Repair/Replacement Program, Exterior
Improvement Program, Voluntary Demolition Program, and related lead-based paint
testing and hazard reduction activities.
Eighteen percent of the entitlement will be utilized for program administration, in order
to comply with all related CDBG program federal regulations.
The following table provides a summary of the CDBG requests:
Public Service Physical Improvement
Activities Activities
Number of Applications 25* 11
Total Amount of
Funding Requests $569,266.00 $1,812,979.39
* 26 public service requests were received, but one applicant withdrew their
application.
HOME
HOME funds are to be used for activities that will expand the supply of decent, safe,
sanitary and affordable housing. Maricopa County is the lead agency of the
Consortium, which is comprised of the county and all the Valley's cities, with the
exception of Phoenix. The purpose of the consortium is to oversee the administration
and distribution of HOME funds.
For FY 2003-2004, the city will receive between $500,000 and $750,000 of HOME
funds from the Maricopa HOME Consortium. The exact amount of funding will not be
known until later this spring.
The CDAC formulated their funding recommendations on the anticipated HOME
funding allocation of $500,000. The committee also formulated additional
recommendations, based on the potential increase in funding.
Of the HOME allocation, a minimum of $230,000 will be distributed to agencies for
2
housing-related activities.
The Replacement Housing Program provided by the Community Revitalization Division
will utilize $240,000 of the HOME allocation. Under this program, single-family homes
that are beyond repair are demolished and a new single-family home is constructed in
its place.
Six percent of the HOME allocation will be utilized for program administration, in order
to comply with all related HOME program federal regulations.
The following table provides a summary of the HOME requests.
Number of Applications 3
Total Amount of Funding Requests $550,000.00
Since Fiscal Year 1977-1978, the City of Glendale has received over $34,990,000 in
CDBG funds. In addition, since 1992, the city has received over $5,605,904 in HOME
funds. These funds have supported numerous activities that have benefited thousands
of residents.
The Community Revitalization Division staff met with grant applicants on September 20,
2002, to discuss the Council priorities, application process and evaluation criteria.
Applicants were also informed of enhancements made to the process including an
emphasis on project readiness, expedient use of federal funds, and financial viability of
the organization. Agencies were also informed that prior performance with the federal
funding would be used by the CDAC as part of the evaluation process.
On December 11, 2002, the Committee received the grant applications for their review,
keeping in mind Council's direction. At this meeting, the CDAC also recommended that
CDBG and HOME funds be reserved for the city's housing programs and demolition
activities.
On January 8, 9, and 15, 2003, the CDAC held public hearings to receive verbal
presentations by both CDBG and HOME applicants.
On January 22, 2003, the CDAC met to formulate their recommendations for Council
review.
On September 6, 2002, notices of the upcoming grant cycle and orientation meeting
were mailed to prospective CDBG and HOME applicants. In addition, a public notice
was published in The Glendale Star on September 5, 2002, notifying interested parties
of the availability of funds and the orientation meeting.
On December 26, 2002 and January 2, 2003, public notices were published in The
Glendale Star advertising the public hearings.
CDBG and HOME programs are federally funded. The HOME program requires a 25%
match from non-federal funds. For those HOME projects that are administered by the
City, an annual match allocation of $25,000 is provided in the General Fund budget as
a supplement for meeting the required 25% match. Outside agencies that apply for
3
HOME funds are required to provide their own match funds. The CDBG program does
not have a match requirement.
The recommendation was to review the funding recommendations from the Community
Development Advisory Committee and provide direction.
Councilmember Martinez stated his concern that nothing was recommended for the
Maricopa County Human Services Department, Special Transportation Services. He
said he personally knows people who have used those services in past years. Mr.
Turbridy stated the committee was charged with making very difficult decisions, noting
Special Transportation Services was listed as an alternative should federal funding be
increased. Councilmember Martinez asked if any other program provides similar
transportation services. Ms. Santiago said the city refers residents to the local Dial-A-
Ride Services.
Councilmember Goulet asked how the Committee ranked the alternative funding
sources, pointing out the first alternative, Community Legal Services, was not a Council
objective. Mr. Turbridy explained the Committee asked its members for a
recommendation, which was then discussed and voted on by the Committee as a
whole. He said the methodology used to decide the alternatives was not as precise as
that used to determine funding.
Mayor Scruggs said the biggest hurdle women who are victims of physical abuse face is
their lack of access to the legal system. She stated, therefore, she believes Community
Legal Services does fit within Council's objective to focus on domestic violence
assistance. Ms. Santiago stated one of the factors considered when deciding on
alternatives was whether the program was duplicated elsewhere. She said Community
Legal Services is the only program of its kind in Glendale. She noted Legal Services
will use the money to reestablish their office in Glendale.
Councilmember Frate pointed out funding is based on need, not whether or not a
program received funding in the past. He commended the Committee for following
Council's direction and basing their decision on how many people the programs help
and what kind of impact they have on the city.
Councilmember Clark asked who established the percentage designated for physical
improvements and public service requests. Mr. Lopez stated the formula was
mandated by HUD. Councilmember Clark asked if CDBG and Home Funding account
for $.9 million of the $1.9 million in total funding. Mr. Lopez explained the percentage
will depend on the amount of Home funding that comes through the Maricopa County
Consortium.
Councilmember Martinez asked why the Westside Food Bank was listed as an
alternative for $5,000, pointing out their request for $10,000 was approved. Mr.
Turbridy explained the Westside Food Bank serves people who are experiencing
temporary financial difficulties, allowing them to use the money they have to pay rent
4
and for other essential services. Ms. Santiago pointed out the Westside Food Bank
also supplies food to many non-profit agencies. Councilmember Martinez asked about
the additional reserve for Community Revitalization Division, Housing Related Activities.
Mr. Lopez explained, if funding is increased to the full $2.6 million, a percentage of the
increase would be directed toward Housing Related Activities.
Councilmember Clark asked how the Committee came to its decision with regard to
where additional funding should be directed. Mr. Turbridy explained the Committee
looked at all of the projects and felt some were more deserving than others.
Councilmember Clark asked if the Westside Food Bank will have to make out another
application if it is granted the additional $5,000 since it was not part of their original
request. Ms. Santiago said they would be asked to submit a revised budget once they
sign the contract.
Vice Mayor Eggleston asked if it is almost certain the city will receive additional funding.
Mr. Lopez said the Committee had to anticipate the possibility of cuts, however, it
appears additional funds will be available.
Ms. Santiago stated they will bring the item to a regular City Council meeting in April.
2. FISCAL YEAR 2004-2013 CAPITAL IMPROVEMENT PLAN
CITY STAFF PRESENTING THIS ITEM: Mr. Tim Ernester, Deputy City Manager, Mr.
Larry Broyles, City Engineer and Ms. Gloria Olaya, Senior Management Assistant.
As part of the annual budget process, the City Council adopts a capital improvement
budget consisting of improvements such as city buildings, streets, parks and water and
sewer lines.
The purpose of today's workshop is to discuss projects included in the Capital
Improvement Plan (CIP) and to receive Council priorities for projects in the FY 2004-
2013 plan. Staff will also review the improvements made to the CIP process during the
last year and discuss changes planned for the future.
A Capital Improvement Division was incorporated within the Engineering Department to
add an administrative/quality control function to the CIP budget process. This division
assists each department in developing their project costs, schedules, and cash flow
projections.
A CIP Management Team was formed to insure that an accurate and complete list of
projects is included in the overall plan. This team considers the feasibility of all the
projects submitted in regard to their necessity, priority, how well they meet the Council's
goals, and what their impact will be on the present and future operating budget.
The CIP Division and Budget Department staff members have held several meetings
with the CIP Management team over the past few months to discuss projects within the
plan.
The plan being presented is a result of these meetings and input from the CIP
Management team members.
5
Throughout the CIP public hearing process, public notices will be posted in accordance
with the open meeting laws and city policies.
The total FY 2002-03 CIP budget is $350,181,009. The FY 2003-04 CIP budget is
currently in development.
The recommendation was to review the available capacity and priorities for CIP projects
and provide staff direction.
Public Safety
Mr. Broyles stated Public Safety projects are funded by a combination of Public Safety
and General Obligation Bonds and Development Impact Fees. He stated $16.4 million
is scheduled for the next five years, with $6.8 million scheduled in the next fiscal year.
He listed the Police Department's digital communication system, the public safety multi-
use facility and the Western Area Public Safety Building as representative projects in
this category.
In response to Councilmember Goulet's question, Chief Henderlite said the digital
communication system will allow Glendale to communicate with other cities' Police and
Fire Departments.
Councilmember Clark asked if the money budgeted for the Public Safety Multi-Use
Facility both this year and next is strictly for land acquisition. Chief Henderlite said the
money in the first year is, however, the money in the second year is slated for a
shooting range and driving track. Councilmember Clark asked if there is any operating
and maintenance cost associated with the shooting range and driving track. Chief
Henderlite responded no.
Chief Henderlite confirmed for Mayor Scruggs that they would not have to purchase any
maintenance contracts with regard to the digital communication system. He said they
do not anticipate any increases in operations or maintenance on the system for at least
five years.
Transportation
Mr. Broyles explained Transportation includes several funding sources, including Street
Revenue Bonds, General Obligations Bonds, Highway User Revenue Funds,
Development Impact Fees and the half-cent Transportation Sales Tax. He said the first
five years total almost $189 million, with $58.4 million scheduled for next year. He
listed a park and ride lot near the Loop 101, intersection improvement projects, Bethany
Home Road improvements, bus pullout projects and the Smart Traffic Signals project
as representative projects in this category.
Councilmember Clark asked if the projects that were funded by grants last year
continue to be funded under grants this year. Mr. Book responded yes, stating grant
amounts will be indicated in the final CIP. Mr. Ernster noted the form will be modified in
the future to separate grant funds. Councilmember Clark asked why the street
widening project on 75th Avenue from Deer Valley to Hillcrest ended up under the
Transportation Sales Tax funding source, expressing her opinion it should have been
brought in under the Scallop Streets program. Mr. Johnson explained they looked at
the CIP that was in place at the time to determine which projects in FY 2006-2010 could
6
be advanced and funded using the Transportation Sales Tax. Councilmember Clark
asked if other unfunded projects could be moved forward as well. Mr. Book stated they
have a balanced program and have funded those projects that were promised. He
said, given the reduction in sales tax revenue projections, adding additional projects
would be done so at the expense of already committed to projects.
Mayor Scruggs pointed out the project went through the Citizens Transportation
Oversight Commission process.
Vice Mayor Eggleston asked about the Bethany Home, 91St to 99th Avenues street
construction project. Mr. Book explained the project did not have funding in the six to
ten year time frame and was brought forward.
Councilmember Goulet asked if a decision has been made with regard to left turn
signals on a citywide basis. He also asked what criteria does the city use to determine
where left turn signals should be located. Mr. Book stated a Capital Improvement
funding program was done two years ago to install the backbone of the Smart Traffic
Signal system. He stated they are currently addressing the gaps in the system that
were identified at that time. He reported they are conducting a lag left study from
Greenway Road to Northern Avenue on 67 Avenue. He said the test manager
believes lag left signals allow through-traffic to progress more efficiently. He stated it
has been proven that increased safety is achieved when a protective rather than
permissive lag left signal system is utilized. With regard to the criteria used to
determine the need for a left turn signal, Mr. Book stated they consider many factors,
including an intersection's accident record and delays. Councilmember Goulet asked
Mr. Book if there is a list of lights the city intends to retrofit with left turn signals. Mr.
Book responded yes, noting, however, the number of modifications done each year has
been reduced to two because of budget constraints.
Mr. Book confirmed for Councilmember Martinez that, as part of the Development
Agreement, Wal-Mart was required to install a conduit that connects the 83` and Union
Hills intersection, the Wal-Mart signal, both signal ramps at the Loop 101 and the 79th
Avenue signal. He said, as part of a Congestion Management Air Quality Grant, the
city has a program that will connect all of the Loop 101 intersections, bringing them into
the traffic management center. He said, while they would like to proceed with the
program as soon as possible, there are a series of steps that have to be taken to obtain
federal approval.
Vice Mayor Eggleston asked for a future presentation concerning the pros and cons of
lead and lag left turn light systems. Mr. Book said he would bring,that information to
Council in the future. He pointed out the lead protected cycle at 51't Avenue and Olive
improved that intersection dramatically.
Mayor Scruggs noted an informal survey of the Glendale Kiwanis group indicated their
support of a lag-left system.
In response to Councilmember Martinez's question, Mr. Book reported Scottsdale and
Tucson have both utilized a lag-left system for a number of years.
Councilmember Frate asked staff to look into the traffic backup during evening hours on
59" Avenue at Greenway.
Landfill Sanitation
7
Mr. Broyles reported the Landfill Sanitation category includes $1.9 million in the Landfill
fund and $4.4 million in the Sanitation fund for a total of $6.3 million in the first five
years. He said the Sanitation Fund has funding in the amount of $538,610 for next
fiscal year. He identified the Sanitation Replacement Trucks Program as the
representative project.
Councilmember Clark asked when they would move Sanitation vehicles into the Vehicle
Replacement Fund. Mr. Reedy said, given the lifespan of the sanitation vehicles,
acquiring them through a lease/purchase process actually provides more benefit to the
city. Councilmember Clark asked how much does a side loader refuse truck cost. Mr.
Reedy said one side loader truck costs approximately $130,000 to $185,000. He said
front loader trucks are slightly less expensive.
Water and Sewer
Mr. Broyles stated the Water and Sewer category totals almost $181 million the first five
years, with $103 million scheduled for next fiscal year. He said the current five year
plan is a balanced plan and will not effect current rates. He identified additional water
capacity, the 91st Avenue construction project, the West Area Water Reclamation
Facility expansion project and the Pyramid Peak Water Treatment Plant as
representative projects.
Councilmember Frate commented that water is becoming very expensive. Mr. Reedy
agreed, noting increased regulatory requirements are a main factor in the cost increase.
Vice Mayor Eggleston asked about the $1.1 million set aside for Project 9213. Mr.
Reedy explained a small membrane process was put into the Cholla Water Treatment
Plant as a pilot program. He said, while the pilot program was successful, the data
indicated the process was not necessarily the most cost effective way to expand water
treatment capacity. He said the fund still has money, in part, because of an ongoing
lawsuit with the contractor. Vice Mayor Eggleston also asked about the additional water
capacity for Project 8056. Mr. Reedy said the city at one time contemplated expanding
the capacity of the Cholla Water Treatment Plant to provide service to undeveloped
parts of western Glendale. He said a consultant has since done a Water Resources
Master Plan and Feasibility Analysis and recommended a Western Area Water
Treatment Plant. Vice Mayor Eggleston asked if Project 9286 requires any construction
on the site. Mr. Reedy said, while some construction is necessary to meet regulatory
requirements, it will not be as much as originally anticipated.
In response to Councilmember Frate's question, Mr. Reedy said regulatory
requirements are stricter due, in part, to a dramatically improved ability to measure
constituents. He noted the city's water supply is tested a number of times every day,
whereas bottled water only has to meet Food and Drug regulations.
Councilmember Martinez asked about the $1 million for Project 9286. Mr. Reedy
explained the $1 million will be used to purchase replacement filters and new carbon,
thereby allowing the city to meet regulatory requirements.
Councilmember Goulet asked about the Downtown Irrigation System project. Mr.
Reedy explained the project repairs the city owned flood irrigation system in the
downtown area on an as needed basis. He noted the system has been abandoned in a
couple neighborhoods and it is hoped that, eventually, the entire system will be
abandoned. He stated they average $80,000 to $90,000 per year in repairs.
Councilmember Goulet asked what it would take for the city to decide to abandon the
8
system. Mr. Reedy stated the city needs to establish a policy that prevents property
owners from returning to the system once they elect to stop taking service.
Mayor Scruggs pointed out approximately 500 properties were on the system 10 or 12
years ago. Mr. Reedy reported 430 properties are currently on the system. Mayor
Scruggs asked if staff will bring the issue forward to Council in the future. Mr. Reedy
responded yes.
Councilmember Clark asked, to what extent does the Fire Hydrant Replacement project
address the problem of out-dated hydrants that do not meet regulations. Mr. Reedy
explained the goal of the project is to replace obsolete fire hydrants for which repair kits
cannot be purchased. He estimated there to be 1,100 obsolete, although functional,
fire hydrants in the system. He said they intend to replace approximately 200 of the
hydrants each of the five years. He confirmed the city has an annual maintenance
program for all fire hydrants.
General Fund
Mr. Broyles stated the General Fund category accounts for miscellaneous major capital
projects and totals $10.3 million in the first five years, of which $3.2 million is
programmed in next year's budget. He explained the Hickman Property Acquisition
project provides funding to complete the purchase of the Hickman Ranch south of
Northern Avenue. Mr. Lynch explained a specific purchase structure was set forth as
part of the sale of the property. He said the restructuring allows the city to ensure the
General Fund pays a proportionate, systematic payment rather than irregular payments.
Mayor Scruggs asked about the Sensory Garden item. Mr. Smith explained the funds
are for on-going maintenance.
With regard to Projects 8983 and 8984, Councilmember Clark asked what would
happen in the event of a major crisis. Mr. Kent explained there are two reserves, one
that performs an emergency function and a second for scheduled building maintenance
projects. He said they will be very judicious in how they use the $200,000 identified for
projects and will look through the Facilities Management budget and work with Budget
staff to find additional funds if necessary.
Vice Mayor Eggleston said he would like to see the Civic Center lighting project
accelerated, stating it will be difficult to market the center for outside evening events
without outside lighting. Mr. Zapata clarified the project refers to internal lighting. Ms.
Hamilton noted temporary outside lighting has been brought in and can be put in place
for evening outdoor events.
Councilmember Martinez asked about the zero balance for project costs on Project
8968-Neighborhood Improvement Grants. Mr. Strunk confirmed there is no money in
the Grants Funds for FY 03/04.
Mr. Strunk confirmed for Mayor Scruggs that there would be no operating or
maintenance costs for Neighborhood Grants.
Councilmember Clark said she would like to see at least a portion of any additional
money found in the budget directed toward Neighborhood Improvement Grants, stating
the program delivers a direct impact, especially to older neighborhoods.
Councilmember Goulet agreed, suggesting they look for alternative funding sources.
9
He pointed out a number of neighborhoods were encouraged to do improvements in
phases and are counting on future grants to proceed with subsequent phases. Mr.
Beasley agreed it has been a fantastic project, stating, however, they are being
challenged to provide that element of service in different ways.
Mayor Scruggs stated she would be reluctant to move money into the grants until it is
clear where the money would come from and what effect it would have on other
programs.
Vice Mayor Eggleston suggested they wait and see where the city is in a year before
making any decisions.
Councilmember Clark said she would like staff to find resources to at least
accommodate those neighborhoods who were led to believe funding would be available
for subsequent phases of their project. She said, however, she would not be opposed
to reviewing the program as a whole.
Mr. Beasley reported Council will have the proposed budget by March 8 or 9.
Councilmember Martinez asked if it is staff's recommendation to zero out the
Neighborhood Grants program rather than modifying it into two smaller cycles. Mr.
Strunk responded yes.
3. LEGISLATIVE UPDATE
CITY STAFF PRESENTING THIS ITEM: Ms. Amy Duffy, Intergovernmental Relations
Director and Ms. Dana Tranberg, Intergovernmental Relations Assistant.
A number of legislative bills have been introduced that could affect the City of Glendale
in various ways. Intergovernmental staff will discuss the most significant bills and their
current status.
This is the third legislative update for 2003.
On January 21, 2003, the Glendale City Council adopted a legislative program that
reflected an updated version of the 2002 legislative program and is consistent with the
Arizona League of Cities and Towns' 2003 legislative agenda.
Departmental legislative liaisons are being notified of proposed legislation that may
affect their respective areas of city administration and are being asked to provide
comments, as appropriate, to the Intergovernmental Relations Department.
Intergovernmental staff will highlight those legislative proposals that could have
significant financial impacts on the City of Glendale. For information, discussion and
possible direction on legislative issues.
Ms. Rudibaugh said JLBC reported no particular improvement in the economy in
February and that the economy is on target with their predictions. She said sales tax
collections were up for January, however, individual income taxes are down 8.6 percent
compared to January of last year. She stated there appears to be an agreement
between the Legislature and the Governor with respect to the FY 03 budget proposal,
10
explaining they are looking at a $300 million plan with an additional $29 million
contingency. She explained $100 million will come out of a deficiency collection
shortfall, $60 million will come from the Ladewig Settlement, $50 million will be
generated through an asset sale to the State Compensation Fund, and $63 million in
fund transfers.
Mayor Scruggs asked how the money in the State Compensation Fund would be used if
they were not using it to purchase buildings. Ms. Rudibaugh explained businesses are
required to self-insure or have worker's compensation to protect themselves and their
employees. She stated the Legislature is proposing that a portion of the fund be used
to purchase state buildings, thereby putting more money into the General Fund.
Councilmember Martinez asked if the Legislature intends to replace the money in the
future. Mr. Paladini explained the State will sell the buildings to the State
Compensation Fund and then lease them back from the fund. Ms. Rudibaugh said the
State Compensation Fund will purchase the buildings as an investment, pointing out
they hope the buildings will appreciate in value.
In response to Councilmember Clark's comments, Ms. Rudibaugh stated, there is a
difference of opinion on if an asset of the state fund is owned by the state or by the
policyholders.
Mayor Scruggs suggested the State Compensation Fund purchase buildings the state
does not already own and collect rent from those tenants. She expressed her opinion
that, while the sale and lease back of state buildings will provide an immediate infusion
of cash to the state, it will create a new, ongoing cost.
Mr. Rudibaugh continued her presentation, stating it is too soon to tell what FY 2005 will
look like. She said there is still a $1.5 billion structural deficit which could increase to as
much as $2 billion.
In response to Councilmember Clark's question, Mr. Rudibaugh explained $63.5 million
of the plan would come from fund transfers,
Ms. Rudibaugh referred to a memo from Councilmember Clark in her role as the
Chairperson of the Maricopa Western Enterprise Zone and the accompanying draft of
the Enterprise Zone Resolution. She said they have historically supported the
Enterprise Zone at the Legislature and recommend Council approve the resolution.
Councilmember Clark said the Enterprise Zones' impacts on the state economy have
been impressive. She noted the average wage last year and this year for a job created
through the Enterprise Zone was $13.00 an hour and $17.00 an hour, respectively.
She stated a $5 million investment of tax credits for the state generated almost $29
million in new capital investments. She said one of the action strategies they adopted
at their last meeting was to ask all municipalities that participate in Enterprise Zones to
adopt a resolution in support of the Enterprise Zones and their administrative agency,
the Department of Commerce.
In response to Vice Mayor Eggleston's question, Ms. Rudibaugh stated there are 24
Enterprise Zones in the state.
Councilmember Clark said it appears the Commissioners' communities will pass
resolutions in support.
11
Mayor Scruggs asked where the resolution will be sent. Councilmember Clark stated it
will be sent to Westmarc and the Department of Commerce to be used in a rebuttal to
the final State Auditor General's findings. Mayor Scruggs asked if West Maricopa
County Enterprise Zone is being considered for renewal or elimination. Councilmember
Clark explained the Department of Revenue has indicated it does not have resources to
take on the administration of additional programs and would not do anything with the
program if it were to move to that department. Mayor Scruggs said she will support the
resolution out of respect for Councilmember Clark's position as chairman of the
Western Maricopa County Enterprise Zone, however, she would prefer that it be more
about the Enterprise Zone and less of an endorsement of the Department of
Commerce. Councilmember Clark reiterated that all of the Enterprise Zones are
working on the same issue and asking their municipalities to pass the same resolution.
She clarified that their support of the Department of Commerce is in regard to its
relationship to the Enterprise Zones. Mayor Scruggs suggested the resolution could
have been written in a way so as to encourage the Legislature to keep the program
intact and funded.
Councilmember Martinez said, based on Councilmember Clark's comments, he will
support the resolution.
Vice Mayor Eggleston said, while he believes it is a good program, he thinks it will be
dead on arrival. Councilmember Clark said, regardless of whether it survives the
process, she believes the program deserves Council's support.
Mayor Scruggs asked Ms. Rudibaugh to determine the status of a piece of legislation
that would establish the elimination of certain taxes for manufacturers, resulting in $5
million to $100 million in less revenue to the state.
Mayor Scruggs directed staff to offer the resolution to the Department of Commerce.
HB2411
Ms. Tranberg explained HB2411 would establish a process for private property owners
to recover damages as just compensation against governmental entities if a
governmental action adversely effects the value or limits the use of their property by 25
percent of the market value. Council agreed with staffs recommendation not to support
HB 2411.
County Islands Annexations
Ms. Tranberg explained the County Islands Annexations bill, as originally drafted, would
allow the County Board of Supervisors to initiate annexation of small county islands of
10 acres or less in size. She said an amendment was added to the bill that would allow
a municipality to stop the annexation process by passing a resolution. Council agreed
with staff's recommendation to conceptually support the bill.
HB2383
Ms. Tranberg stated HB2383 stemmed from a league resolution that called for the
adjusting of the annexation requirements placed on municipalities when annexing areas
in close proximity by allowing municipalities to initiate an annexation process when a
county island is of 80 acres or less.
Ms. Tranberg confirmed for Mayor Scruggs that the bill is not mandatory. Mayor
12
Scruggs said, while a number of municipalities strongly support the idea, she would not
support Glendale doing annexations in this manner.
Vice Mayor Eggleston asked if the assessed valuation requirement would be
eliminated. Ms. Tranberg responded yes.
Council agreed with staffs recommendation to support the concept, while recognizing
the need for additional refinement to address some of the private property rights issues.
SB1216
Ms. Rudibaugh explained SB1216 would change the seatbelt law to a primary law.
Council agreed with staff's recommendation to support the bill.
SB1057
Ms. Tranberg said, according to the Arizona Automobile Theft Authority, Arizona has
become the number one state for auto theft per person. She explained SB1057 would
add manipulation keys to a list of burglary tools that are illegal to buy, sell, transfer or
possess. Council agreed with staffs recommendation to support the bill.
SB1187
Ms. Tranberg explained SB1187 adds peace officers assigned to specific hazardous
duties to a previously approved bill that provides worker's compensation coverage for
specific cancers contracted by firefighters while on duty. Council agreed with staffs
recommendation to support the bill.
HB2472
Ms. Rudibaugh explained HB2472 would provide an unworkable mechanism for judges
to determine if defendants should be released from custody and requires defendants to
be reordered to counseling to the detriment of others in the program. Council agreed
with staffs recommendation to oppose the bill.
SB1209
Ms. Tranberg stated current statute requires the distribution of state shared revenues
be based on the most recent U.S. decennial or special census. She said, with
Arizona's rapid growth, many cities, including those in Maricopa County, are discussing
the need for recalculating population in 2005. She said, however, due to the high costs
of a special census, cities are seeking legislation to provide additional options for
obtaining population estimates, including DES projections, conducting a sample survey
or continue using the 2000 census numbers. She noted the bill does not select or
prioritize any of the options. Council agreed with staff's recommendation to support the
bill.
SB1341
Ms. Tranberg reported SB1341 has been amended and no longer affects cities.
SCR1012
Ms. Rudibaugh explained SCR1012 went to the voters as Proposition 101 last
13
November. She said the bill is important for two reasons, it helps with military base
preservation and helps maximize the state trust land that is a benefit for education
purposes. Council agreed with staff's recommendation to continue to support the bill.
Senate Memorial 1001
Ms. Rudibaugh stated members of the military are concerned about this bill, explaining
it asks for a National Peace Park to occur in an area that encompasses the Capaza
Prieta where the military performs low level over-flights and next to an area where the
air force does practice bombing runs. She said it is her understanding the bill is being
removed by its sponsor.
SB1359
Ms. Tranberg said SB1359, a strike everything amendment, is identical to HB2308.
She reported the strike everything amendment was held by Senator Weirs in his
committee, therefore only the House version is proceeding.
HB2308
Ms. Tranberg reported HB2308 is ready for Committee. She said, while, to date, the bill
has not been amended, several floor amendments could be offered. She stated cities
and towns are currently working on a more comprehensive amendment, which they
hope will be offered in the Senate.
Vice Mayor Eggleston asked if the capital gains clause was taken into consideration.
Ms. Tranberg said the issue was discussed, but some legislators feel there is an abuse
of the eminent domain statutes.
Ms. Tranberg stated some of the proposed amendments will tighten up the eminent
domain statute, but leave it as a viable option to cities who use it for economic
development.
Vice Mayor Eggleston expressed his opinion the bill is a very bad idea.
Mayor Scruggs asked if any municipalities are actively lobbying the bill. Ms. Tranberg
responded yes.
Council agreed with staff's recommendation not to support the bill.
HB2292
Ms. Rudibaugh said, while HB 2292 was not originally written in a form they liked, it has
since been rewritten into a workable form. Council agreed with staff's recommendation
to support the bill.
Councilmember Martinez asked about HOA's. Mr. Tranberg stated HB2307 would
require seven years of delinquent fees before an HOA could foreclose on a home.
Mayor Scruggs said everyone who lives in an HOA entered into a private contract. She
asked if the legislation would, in effect, change those private contracts and, if so, what
authority does the state have to make such changes. Mr. Flaaen said he would
anticipate a challenge to the legislation based on that issue. Mayor Scruggs stated she
feels strongly about the governments ability to change a contract that private individuals
14
willingly entered into and allowed to be recorded with the deed to their property. She
expressed her opinion the government is overstepping its bounds, suggesting it could
extend into other types of private contracts.
ADJOURNMENT
The meeting was adjourned at 4:35 p.m.
15