HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 12/13/1988MINUTES OF THE WORKSHOP SESSION OF THECITYCOUNCILOFTHECITYOFGLENDALE, MARICOPA COUNTY, ARIZONA HELD TUESDAY, DECEMBER 13, 1988, AT 3:05 P.M. Mayor Renner called to order the Workshop Session of GlendaleCityCouncilinConferenceRoomB-3 of the Council Chambers. Council members present were: Bellah arrived at 4:15 pm, Falbo arrived at 4:55 pm, Huffman, Hugh, McAllister, andTolby. Members Absent: None. WORKSHOP SESSION1989MAJORMEDICAL RENEWALSOnDecember31, 1988, the City's Employee Medical Insurancecontractsexpire. For the past several years, the City hasnothadtofacethekindsofmedicalinsuranceincreases
faced by other organizations, and in fact, has obtained a
number of refunds. Recently, the Risk Management Division
obtained quotes from Arizona Health Plan/CIGNA and Washington
National for the upcoming year's rates. As a result of our
claims experience, Arizona Health Plan/CIGNA quoted a rate
increase of 21.6% and Washington National quoted an increase
of 38%.
In order to reduce the Washington National increase to 33.5%,
staff is recommending that two fairly minor changes be made
to the existing Washington National Program. First, the
deductible would be raised from $100.00 to $150.00.
Employees who take part in the City's Wellness Program would
still have the entire deductible waived. Second, the
employee's yearly out-of-pocket expense for their total
family would increase from $350.00 to $500.00. The Arizona
Health Plan/CIGNA Health Plan Programs would remain the same.
In terms of the overall City costs of maintaining the
programs, as indicated, a contingency transfer of
approximately $265,000.00 will be required for the remainder
of this budget year. Next year, an additional $530,000.00
would need to be budgeted for benefits. We have limited
choices to substantially reduce the $265,000.00 amount this
year. However, we need to discuss health benefits as part of
our overall compensation package for the next year. This is
a major budget expenditure that will need to be looked at in
conjunction with salary increases and other competing needs.
Section 89 of the Fair Labor Standards Act requires that the
City pay equal dollar amounts for coverage on behalf of
employees in differing benefit programs. As a result of
this, despite increases for both Arizona Health Plan/CIGNA
and Washington National, employee deductions for dependent
coverage per pay period would be as follows:
Currently After IncreaseArizonaHealthPlan/CIGNA $10.58 $ 6.62WashingtonNational $40.75 $53.71AllenIampaglia, Risk Management Manager, briefed the councilontherenewals. Mayor Renner asked if it was possible to get a six monthextensiontobeabletorenewwiththebudgetprocess. Mr. Iampaglia stated Washington National was not willing to carrythecurrentrateforthenextsixmonths. Mayor Renner asked if consideration had been given tochangingthepercentagecontributiontheCitymakes. Mr. Iampaglia said they had not looked at that option.
Mayor Renner asked what the split was between the two
insurance companies. Mr. Iampaglia said 55% CIGNA and 45% to
Washington National.
Mayor Renner asked what if the City went back to a 50%-550
contribution. Mr. Iampaglia said they did not look at this
option but rough figures would be employee contribution would
increase from $13 to $21 per pay check.
Mayor Renner stated he felt a more in-depth look at the
deductibles and total year pay out was warranted then forward
to the Budget Finance Committee for review.
This item will be placed on a Budget Finance Committee agenda
for review.
CAPITAL IMPROVEMENT PROGRAM BUDGET
Staff will be present to provide information to Council
concerning the Capital Improvement Budget as well as the
upcoming operating budget process.
Ken Martin, Resource Management Deputy City Manager, reviewed
the CIP and operating budget with the Council.
Mayor PAnner asked if the list for the first fiscal year are
proj tthat could be funded through the anticipated tax
rate. fir. Martin said that was correct.
Mayor Renner asked what was the difference between the
remaining authorization and the new bonds. Mr. Martin said
the voter authorization listed the various bond categories
and the first column shows the remaining authorization from
the voters; the second column shows the new bonds that can be
funded.
Mayor Renner asked on the multi -funded projects if the grantsorrevenuesourceswerecertain. Mr. Lazenby said some ofthemarenot. Mayor Renner asked this come back to workshop and include theprojectsleftonthisyearsbudget. Mr. Martin said thatwouldbedone. MANAGEMENT REPORT ON WATER RATESInNovember1988, the Utilities Committee gave conceptualapprovaltoawaterrateincreaseofsixpercent, effectiveJanuary1989. The rates were to be structured to continue toenhancewaterconservation. The attached "Management ReportonWaterRates" proposes a rate increase averaging 6%, whichwillmeettherevenueobjectivesforthewaterutilityaswellasencouragewaterconservationamongallclassificationsofcustomers. Water rate option three is
recommended for implementation effective January 1, 1989.
This rate schedule will achieve needed revenue, enhance the
inverted block rate structure to promote water conservation,
and adhere to financial liquidity and stability criteria
recognized by the financial community.
The Utilities Committee, in its November 28, 1988 meeting,
reviewed the three alternative water rate adjustments, and
instructed staff to bring this report forward to the full
Council. The Committee did not recommend a specific rate
option, intending that the full Council would select one of
the three as appropriate.
Tom Martinsen, Public Works Deputy City Manager gave a brief
presentation. Mike Moore, City Auditor, summarized the three
options.
Mayor Renner asked which class multi -family would be in. Mr.
Moore said they are in the business category because they
have 211, 4" or 6" meters.
Mayor Renner asked if there was any discussion on a
winter -summer rate for residents. Mr. Martinsen said it is
not feasible now due to the inverted block rate method but
the seasonal rate is used for commercial customers.
Councilman McAllister stated this was first brought to the
utilities subcommittee with a 15% increase and it has been
decreased to the absolute minimum necessary.
Vice Mayor Tolby stated he would recommend option three.
This item will be placed on a regular agenda for council
action.
SEWER AGREEMENT WITH AMERICAN CONTINENTAL CORPORATION
Since early 1988 City staff has been working with AmericanContinentalCorporationtoformalizearrangementsthroughwhichtheCitywouldprovidesewerservicetocertainpropertieswithinthewestplanningarea, subject to varioustermsandconditions. An agreement has been developedsettingforththesearrangements, it was reviewed with theUtilitiesCommitteeinitsNovember28, 1988 meeting, and theCommitteeconcurredinforwardingittothefullCouncilforconsideration. A staff report to the Utilities Committee summarizing thetermsandconditionsoftheagreementisattachedforreference, along with a full copy of the draft agreement. Briefly, this arrangement is beneficial to the City because: it enables the City to master plan sewer service in the westarea; all facilities are to be built at developers' expense, including lump sum cash payments for future operating
expenses as well as the payment of development fees and
service charges; provision is made for future annexation if
requested by the City; and the City will have future use of
the reclaimed effluent.
AMCOR's schedule contemplates finalization of participation
agreements with other properties by early 1989, and
proceeding as soon as possible thereafter with construction
of the sewerage facilities. Staff will be present to discuss
this agreement in greater detail and respond to any
inquiries. With City Council concurrence, approval of the
agreement will be scheduled on a forthcoming agenda, and
authorization will be given to proceed.
Councilman McAllister stated he felt it was a good move.
This item will be placed on a regular agenda for council
action.
RECOMMENDED DISTRICT P
On November 29, 1988, at 7:30 p.m. the Mayor and Council
conducted a Public Hearing for the purpose of receiving
citizen comment on the proposed Rose Institute recommended
Glendale districting plan. Comments made at that meeting
were forwarded for response to Dr. Alan Heslop, of the Rose
Institute. The Chairman of Glendale Citizens For Responsive
Government introduced an additional proposal as part of his
prepared remarks. While this plan was submitted after the
deadline for citizen proposals to be introduced for
analysis,the Council in keeping with its policy of citizen
participation in the district process, directed it also be
sent for analysis. Dr. Heslop's analysis and responses are
attached for your information and consideration. Copies of
the Institute report have been mailed to those individuals
requesting one. Again, in the interest of an open process, I
have requested Dr. Heslop to be present at the December 13thWorkshoptodiscusshisresponseandansweranyfurtherquestionsyoumayhave. Mr. Greg Jernigan, resource attorneyondistrictingwillalsobeinattendance. Alan Heslop of the Rose Institute, presented the recommendedplan. Vice Mayor Tolby asked Mr. Jernigan if he had seen a map thatwouldbeeasiertodefend. Mr. Jernigan said he had not andsaidhewouldbesurprisediftheJusticeDepartmentwouldturnitdown. Bill Stout asked why the citizens map was not included incomparingthealternatives. Mr. Helsop stated the citizensmapwasreturnedtothecity. Mr. Stout said he felt thepublicwouldgetabetterunderstandingifbothmapwerepresented. Mr. Heslop stated the plan was included in the
package along with all the data.
Mayor Renner stated the citizens plan was submitted well past
the cutoff date but the council did ask the institute to
process the data.
Mayor Renner stated he complimented the political courage and
straightforwardness of the councilmembers for their
willingness to proceed ahead with a plan which will impact
them.
This item will be placed on a regular agenda for council
action. There will be a public hearing on December 14, 1988,
for the purpose of receiving comment upon the method of
determination on which of the six district will be on the
ballot in 1990.
INTERGOVERNMENTAL REPORT
Marion Porch, Intergovernmental Liaison, briefed the City
Council on legislative issues.
ADJOURNMENT
There being no further business the meeting was adjourned at
6:00 p.m.
Asst. City Clerk