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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 4/15/2003 (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 15, 2003 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; Pam Kavanaugh, Assistant City Manager; Rick Flaaen, City Attorney; and Pamela Hanna, City Clerk FISCAL YEAR 2003-04 BUDGET PROCESS This is the second of four scheduled City Council workshops to review the proposed Fiscal Year (FY) 2003-04 Annual Budget. Over the course of the next several workshops, the city manager will present his recommended balanced budget for FY 2003-04. Budget presentations will focus on service impacts of budget reductions, alternatives to address these service impacts and discussion of any supplemental requests submitted. Today's meeting will focus on the departments within the Public Safety and City Manager's Groups. The November 15 City Council Goal-Setting Retreat was the first step in the FY 2003- 04 budget process. At that meeting, staff presented the economic forecast for the city and the Mayor and Council discussed the national and local economies and their effect on Glendale's FY 2003-04 budget. At the retreat, the city manager discussed the measures the city has implemented to address the revenue shortfall for both Fiscal Years 2002-03 and 2003-04. These measures included citywide budget reductions and revenue enhancements. Department heads presented their departmental budgets to the Leadership Team at a series of administrative review meetings in March. The agenda for this City Council workshop has been posted and all legal requirements for notification have been met. 1 The City Council will review the FY 2003-04 budget at workshops during April. The recommendations made at these workshops will direct staff in preparing for final City Council budget review and adoption in June. The recommendation was to review the FY 2003-04 Proposed Annual Budget and provide staff with direction. Public Safety Fire CITY STAFF PRESENTING THIS ITEM: Pilar Aguilar, Acting Budget Director, Mark Burdick, Fire Chief, and Sandy Van Winkle, Management Assistant. Ms. Aguilar reported a base budget of $15.5 million, noting $14.1 million comes from the General Fund and $1.1 million comes from special revenue on the Public Safety Sales Tax. She stated grants and Fire Inspection Fees also fund this Department. Chief Burdick stated, as part of the business plan, they benchmarked against other cities nationally, noting Glendale offered the lowest budget out of ten cities of similar size. He said Public Safety has not been impacted by the hiring freeze and eight firefighters that will complete staffing for the 83rd Avenue Public Safety facility are currently in training. Chief Burdick said they have supplemental requests totaling $512,001. He said the Division reduced professional development and subscriptions by $40,679 and delayed a $107,500 lease payment on a fire engine for Station 158 for a total budget reduction of $148,179. He said $200,000 of the supplemental request is for a CAD contract increase. He explained the money will be used for the 800 megahertz radio and mobile computer terminal systems. He pointed out that, although there will be an initial cost to the city to install the mobile computer terminal systems, ultimately the system will save the city money. Ms. Aguilar said state law requires that all local revenues be appropriated. She explained two $10,000 supplemental requests are related to fees the fire department collects for Expedited Plans Review and Contract Plans Review and will allow the department to spend those revenues within their budget. Chief Burdick stated the Special Revenue Fund supplemental request for $274,336 will be used to train new paramedics for the 83`d Avenue Public Safety facility. He said the $37,665 request for firefighter safety equipment will provide self-breathing apparatus testing and maintenance equipment, additional money for turnout equipment, rapid intervention crew bags and ground ladder testing equipment. Councilmember Martinez asked if any penalty will be associated with the delayed lease payment. Chief Burdick responded no. 2 Vice Mayor Eggleston asked if any provisions have been made in terms of staffing in case construction of the 83rd Avenue Public Safety facility is delayed. Chief Burdick explained the unit will be put into service at another station. In response to Councilmember Lieberman's question, Ms. Aguilar stated staff will return to Council on May 6 with a comprehensive picture of arena related funding and stadium requests. Councilmember Lieberman expressed his opinion the Cost Recovery Secretary should be funded, stating the costs recovered should more than pay for the position. Chief Burdick asked to come back to Council on that issue, noting they are currently undergoing a Request for Proposal on the contract that may result in more revenue. Councilmember Goulet asked Chief Burdick if he is comfortable making reductions to professional development which enables staff to maintain best practices. Chief Burdick said yes, noting there are internal opportunities for professional development. He stated the cuts to professional development should not impact their ability to maintain staff at their highest level. Councilmember Goulet asked Chief Burdick to comment on the impact of speed humps on the fire department's response times. Chief Burdick stated the modified speed humps are the best alternative because they allow fire trucks to pass through communities unimpeded while still reducing regular vehicle speeds. Mayor Scruggs stressed the importance of putting public safety needs first. Mayor Scruggs asked what the funds for paramedic training will provide. Chief Burdick said the funds will cover the cost of tuition and associated fees, as well as overtime hours for those attending and staffing the classes. Mayor Scruggs asked if the stated amount includes the increase in pay that occurs once a firefighter is certified as a paramedic. Chief Burdick said no. Mayor Scruggs asked Chief Burdick to explain the $85,000 unfunded increase in Shop and Fuel charges. Chief Burdick said, while internal changes have been made to economize how business is conducted, the trucks go through a lot of fuel. He pointed out that Shop and Fuel charges have gone down over the past six months, even though fuel charges have gone up. He stated they will monitor the situation over the next year to see if the increase can be absorbed. Mayor Scruggs expressed her opinion this is not a legitimate way to meet the budget goal, stating fuel is necessary for the department to be able to do its job. She asked about the Medical Safety Needles. Chief Burdick explained OSHA has mandated that the needles used to start IV's have retractable needles that go inside a protective housing to prevent accidental sticks. He said they no longer have that request because Southwest Ambulance recently offered to supply the needles to the department. Mayor Scruggs asked why it is listed as an unfunded supplemental. Chief Burdick stated the change just occurred and the item should no longer be listed as an unfunded supplemental. Mayor Scruggs asked if Southwest Ambulance will provide the equipment needed for a full year. Chief Burdick stated Southwest Ambulance made a commitment to provide the equipment from "this point forward." He acknowledged there is a risk that Southwest Ambulance could, at some point in the future, decide to no longer provide that service, at which time they would have to return to Council. 3 Mayor Scruggs asked if Southwest Ambulance's offer goes beyond their responsibility. Chief Burdick responded yes, stating it demonstrates the quality of the public/private partnership that exists between Southwest Ambulance and the department. Mayor Scruggs stated she will write a letter to Southwest Ambulance thanking them for their generosity. Councilmember Clark questioned whether 160 events will occur in the arena's first year, asking staff to obtain a more realistic figure. She suggested any surplus money identified for the arena's first year could be better used to cover the Shop and Fuel charges. Chief Burdick stated they are reviewing the numbers and will return with updated figures at a later date. Councilmember Lieberman pointed out an offset credit of $138,738 was made to take into consideration that the arena will not open until December 26. He noted Jim Hayden, Director of Maricopa County Southwest Ambulance, was cited by Phoenix Business Journal as one of the 40 outstanding men in the valley. Councilmember Frate asked how they will deal with the reduction to Community Relations. Chief Burdick clarified the reduction is due to internal adjustments, assuring Councilmember Frate that Community Relations is adequately funded. Councilmember Martinez asked if the Fire Department still holds immunization events, stating the number of needles used seems high. Chief Burdick explained it often takes several needles to successfully insert an IV into a patient in the field. Councilmember Martinez asked how the reduction to Professional Development Emergency Grant Funding will impact the department's efforts with regard to homeland security. Chief Burdick said they hope to receive grant funding that will allow the department to exercise the Emergency Operations Center. Mayor Scruggs asked if the grant program funding administered by Ms. Moloff will now include public safety. Ms. Aguilar clarified the $150,000 grant program funding has been used for a variety of grants, including public safety grants. Mayor Scruggs said it was her understanding public safety would get their grant funds through their own budgets. She asked if the Fire Department's request for $75,000 would reduce the grant fund by half. Ms. Aguilar explained the request for $75,000 was in anticipation of potential grants, but there are no secured grants. Mayor Scruggs expressed concern that public safety and homeland security grants could ultimately absorb the entire grant fund, leaving no funds available for other programs. Ms. Aguilar said Ms. Moloff felt the grant sources for other types of grants would be down for the coming year, therefore, they could potentially fund some public safety needs. Councilmember Clark said the Fire Department's budget appears to be very fluid. She asked if Council will get a revised version of the budget as soon as one is available or if they will have to wait for the entire city budget to be revised. Ms. Aguilar explained, on May 6, Council will get a picture of everything discussed up to that point. 4 Councilmember Lieberman noted, initially, each department was responsible for seeking their own grants. He said the city decided to hire a Grant Coordinator eight years ago in an effort to coordinate all grant requests. In response to Councilmember Martinez's question, Chief Burdick explained the $13,760 allotted for fire retirement overtime will offset the cost of additional staff related to the arena. He stated they will return to Council on May 6 with more information on that item. Police CITY STAFF PRESENTING THIS ITEM: Pilar Aguilar, Acting Budget Director, Randy Henderlite, Police Chief, and Teresa Corless, Management Assistant. Chief Henderlite said the department has undergone several changes over the past year, including a major reorganization to reduce redundancy within the department. He said they are currently in the reaccredidation process with review by the national organization scheduled to occur later this month. Chief Henderlite stated the Police Department has a reduction of $945,412, with all divisions taking a cut in overtime, shop charges and professional development. With regard to the shop charges, he explained the department called back all of their numerous take home vehicles, reducing shop and fuel charges drastically. He said, however, the increase in fuel costs have offset the amount saved. He stated the new fleet manager is looking at implementing a tiered rate for police cars which could result in an overall reduction in maintenance charges. He assured Council that the large reduction in professional development will not jeopardize training the officers receive. He explained the department is mandated by AZPOST to require that every sworn officer have 40 hours of training each year. He stated there is enough expertise within the department to be able to provide those training opportunities. He said they also intend to utilize the training services offered by the city's Human Resources Department and the Arizona Community Policing Institute. He stated, however, officers will not be attending some of the more expensive command level schools. With regard to overtime, Chief Henderlite stated the department will adjust officer schedules when appropriate to accommodate the city's needs without the need for overtime. He explained the salary savings reflected in their budget takes into account the number of officers expected to retire, resign or be terminated and reflects the fact that the lengthy hiring process only allows for a certain number of officers to be hired in a given year. He assured the Council that the department will continue to hire new officers, stating, however, a few civilian positions within the department have been frozen. He pointed out he would have to return to Council to ask for a replacement if the department loses one more communications specialist. Chief Henderlite reviewed the department's supplemental requests, noting the federal government will pay $655,839 of the $802,089 request for 15 officers. He said the 5 federal government will also pay for both COPS in School officers. Councilmember Lieberman commended Chief Henderlite and his support staff for the work they do. He said one of the Senators stated during a debate that one of the new budgets did not contain the COPS program. He asked Chief Henderlite to check into the validity of that statement. He expressed concern that the number of authorized officers did not increase for FY 2003/04, stating it is vital that the city maintain its officer-to-resident ratio. Councilmember Frate thanked Chief Henderlite and the officers who worked the Cardinal Stadium groundbreaking ceremony. He asked if vehicles damaged in an accident are included in the Shop Charges. Chief Henderlite said, depending on the fault factor, the department or their insurance company pays for repairs. He stated the repairs are charged to vehicle maintenance and, therefore, are considered Shop Charges. He noted the department and Risk Management are looking at ways to reduce the number of accidents. Councilmember Frate pointed out the Western Area facility will reduce the number of miles officers have to drive, thereby reducing fuel charges. In response to Councilmember Martinez's question, Chief Henderlite explained the department regularly reassigns officers and support personnel to areas where they believe they will be better utilized. Councilmember Martinez asked how the city will be affected by the increase in population if the department does not see a proportional increase in the number of officers. Chief Henderlite explained a study conducted last April found 15 additional officers would be needed each year for the next five years to address growth issues, response times and unassigned times. He said the 15 COPS- Universal officers are in line with that finding. Councilmember Martinez stressed the importance of maintaining the ratio between the number of residents and the number of police officers and fire fighters so as not to create an adverse impact on the citizens. Chief Henderlite clarified for Councilmember Clark the department currently has 334 sworn officers. Councilmember Clark asked if the number of sworn officers is increasing on a yearly basis. Chief Henderlite responded yes. He said the department currently has 10 vacant sworn positions, however, the 17 officers included in the supplemental requests represent additional sworn positions. He noted six other officers are currently serving in the military. He commended the Commanders for the job they do balancing the department's resources, Councilmember Clark stated the city needs to get itself into a position where it is better able to cover officer absences and vacancies, stating the impact of those absences hits patrol first. Chief Henderlite agreed. Councilmember Clark asked if the arena management company is responsible for paying for public safety. Mr. Beasley responded yes, stating, however, it does not include overtime costs. Mayor Scruggs clarified budget constraints are not the reason the Police Department is not at full strength, stating a number of other factors are responsible. Chief Henderlite 6 agreed. Councilmember Goulet asked if the department's reorganization will have any impact on the Community Action Teams. Chief Henderlite stated the department is not decreasing the number of teams, agreeing they are important to the department's overall mission. Councilmember Lieberman commented on the per hour rates charged by commercial garages, pointing out they far exceed the rate charged by the city. Mayor Scruggs stated she is encouraged by the fact that the new fleet manager will consider tiered rates, pointing out the city is not supposed to make a profit. Ms. Aguilar stated they hope to return to Council with a tiered rate structure in the not-to-distant future. Mayor Scruggs asked what price-per-gallon was used when developing the budget. Mr. Reedy guessed $1.30 per gallon. He said, however, the city is seeing substantial increases over what was predicted, noting they are currently paying close to $2.00 per gallon. Mayor Scruggs asked Mr. Reedy to confirm the price-per-gallon used in developing the budget. She said it would be counter-productive to use $1.35 per gallon when the actual cost is substantially higher. She talked about the impact using artificially low fuel estimates could have on how the department is perceived by the citizens. She expressed concern the department could be forced to reduce the number of appearances it makes at district meetings and other neighborhood events in an effort to reduce the number of vehicle miles traveled. She asked if the department has a say in whether a special event should be continued or created. Chief Henderlite said an officer is assigned to the city's Special Events Group to assist in planning efforts and to bring forth public safety related issues. Mayor Scruggs referred to Chief Henderlite's earlier reference to the elimination of vehicles being taken home and the reduction in overtime. She acknowledged the personal impacts some of the budget reductions have had on personnel and their families, thanking those families for their help. She said, while things are different and difficult right now, she would ask employees to understand the situation and trust the city will do the right thing. She commended Chief Henderlite on his ability to achieve budget reductions without an even greater level of impact on city employees. The meeting recessed for a short break. City Managers Group CITY STAFF PRESENTING THIS ITEM: Pilar Aguilar, Acting Budget Director, and Cathy Gorham, Acting Director Council Manager Relations Ms. Gorham explained the City Manager's Group consists of the City Manager's Office, the City Auditor, Communications, Intergovernmental Relations, Human Resources and Economic Development. 7 City Manager's Office Ms. Gorham reported a base budget of $1,145,362, with no carryover or supplemental requests. She stated external recruitment for the City Manager's intern position will be discontinued and the salary will be returned to the General Fund, for a total budget reduction of $22,190. Community Action Program CITY STAFF PRESENTING THIS ITEM: Pilar Aguilar, Acting Budget Director, and Norma Alvarez, Program Administrator. Ms. Alvarez presented the Community Action Grant Fund base budget of $361,327 with no carryovers or supplemental requests. Councilmember Clark asked if the Community Action Program received funding directly from the federal government. Ms. Alvarez explained the funds originated from the federal government, but went through the state and county before the City received them. Auditor CITY STAFF PRESENTING THIS ITEM: Pilar Aguilar, Acting Budget Director, and Candace MacLeod, City Auditor. Ms. MacLeod stated the base budget totals $296,955, with no carryover or supplemental requests and a budget reduction of $9,208. She explained the reduction represents a reduction in professional development and training and postponement of a vacant internal auditor position. She stated audit efforts will be focused on areas of highest priority first. Communications CITY STAFF PRESENTING THIS ITEM: Pilar Aguilar, Acting Budget Director and Julie Frisoni, Marketing Communications Director. Ms. Frisoni reported a base budget of $1,636,254, a budget reduction of $40,462 and no carryover or supplemental requests. With regard to the budget reduction, she said one hourly employee position will be eliminated, professional development will be eliminated and advertising for the speed reduction campaign will be reduced. She noted the Connection newsletter will also be changed to a one-color publication. She stated Cable will eliminate two hourly employee positions and professional development. She said they are also considering whether or not to continue closed captioning of Council workshop sessions, noting Glendale is the only city that closed captions workshop sessions. Councilmember Clark asked if all programming is closed captioned. Ms. Frisoni responded no, stating only Council meetings and workshops are currently closed 8 captioned. She noted the company that provides closed captioning services has agreed to reduce their rate to $120.00 per hour. Intergovernmental Relations CITY STAFF PRESENTING THIS ITEM: Pilar Aguilar, Acting Budget Director and Dana Tranbert, Intergovernmental Relations Assistant Director. Ms. Tranberg reported a base budget of $351,267 and a budget reduction of $10,892. She said there are no carryover or supplemental requests. She explained the reduction will be made to professional development. Councilmember Martinez asked about the reduction to Supplies and Contracts. Ms. Tranberg explained carryover previously in the account will not carry forward. Human Resources CITY STAFF PRESENTING THIS ITEM: Pilar Aguilar, Acting Budget Director and La Verne Parker Diggs, Human Resources Director. Dr. Parker-Diggs explained the base budget totals $17.8 million, most of which is in trust funds or the Worker's Compensation Fund. She said the General Fund budget totals $2,507,251. She stated the budget has been reduced by $41,878 and there are no carryover or supplemental requests. She said $10,704 of the budget reduction was achieved through reductions to wellness related services, however, the city will partner with other organizations who will provide services at their own expense or at minimal cost to the city. She said they will also temporarily suspend the Executive Leadership Training series, however, supervisory and management training programs will continue. In response to Councilmember Clark's questions, Ms. Aguilar explained, because it is difficult to estimate the amount that will be paid for Worker's Comp benefits or out of the Risk Management Trust Fund, they assume full expenditure so as not to overestimate the beginning balance for the coming year. She said they will be providing revised estimates before Council approves the final document. With regard to the Risk Management Trust Fund, Councilmember Clark asked about the difference between the FY 2002/03 estimate and FY 2002/03 budget. Ms. Aguilar explained the FY 2002/03 budget reflects the budget as it was adopted. She stated they returned to Council twice during the year to request a Continuing Appropriation Transfer for the Risk Management Trust Fund due to increased claims and premiums. She stated those requests were approved and the budget was amended. Councilmember Clark asked if there should be an automatic percentage increase, rather than a reduction, to the Risk Management Trust Fund base budget. Ms. Aguilar explained the reduction occurred because some of the older claims under Self-Funded have been paid. She said this year's budget assumes only having to pay the premium and some small potential claims next year. 9 Economic Development CITY STAFF PRESENTING THIS ITEM: Pilar Aguilar, Acting Budget Director, and Jim Colson, Economic Development Director. Mr. Colson reported a base budget of $645,553 and an overall budget reduction of $21,075. He said there are no carryover or supplemental requests. He explained the budget reduction will come from two areas; a reduction in GPEC membership fees and a reduction in professional development, organizations, marketing, travel and research and communications. Mr. Colson clarified for Councilmember Lieberman that GPEC reduced their membership fee by 10 percent. He said GPEC has also agreed to change its focus to meet the city's long term, intermediate and short term objectives. Councilmember Lieberman stated he does not believe the city should continue supporting GPEC. He asked if the Supplies and Contracts budget reduction represents incentive money. Mr. Colson responded yes. In response to Councilmember Clark's question, Mr. Colson explained their department will replace some of its data sources with those used by other departments within the city and utilize research data and collateral development services offered by the State Department of Commerce and the Greater Phoenix Economic Council. Councilmember Lieberman asked if reducing the Economic Opportunity Fund will hinder the city in its ability to attract new business. Mr. Colson said, while the fund was a very valuable tool, he does not believe elimination of the fund will put the city at a disadvantage when competing with other cities. He said incentives are addressed on a case-by-case basis and staff will return to Council if a situation that merits an incentive presents itself. Vice Mayor Eggleston expressed his opinion the city would benefit by maintaining its membership in GPEC. ADJOURNMENT The meeting was adjourned at 10:30 a.m. 10