HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 4/30/2019 City of Glendale
5850 West Glendale Avenue
Glendale, AZ 85301
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Meeting Minutes
Tuesday, April 30, 2019
5:30 P.M.
Budget Workshop Meeting
Council Chambers
City Council
Mayor Jerry Weiers
Vice Mayor Joyce Clark
Councilmember Jamie Aldama
Councilmember Ian Hugh
Councilmember Ray Malnar
Councilmember Lauren Tolmachoff
Councilmember Bart Turner
CALL TO ORDER
Mayor Weiers called the meeting to order at 9:00 a.m.
ROLL CALL
Present: Mayor Jerry Weiers
Vice Mayor Joyce Clark
Councilmember Ian Hugh
Councilmember Lauren Tolmachoff
Councilmember Bart Turner
Absent: Councilmember Jamie Aldama
Councilmember Ray Malnar
Also Present: Kevin Phelps, City Manager
Michael Bailey, City Attorney
Chris Anaradian, Assistant City Manager
Julie K. Bower, City Clerk
*Councilmember Malnar arrived after the roll was called.
MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION
A motion was made by Vice Mayor Joyce Clark, seconded by Councilmember Ian Hugh to
hold an executive session.
AYE: Mayor Jerry Weiers
Vice Mayor Joyce Clark
Councilmember Ian Hugh
Councilmember Lauren Tolmachoff
Councilmember Bart Turner
Other: Councilmember Jamie Aldama (ABSENT)
Councilmember Ray Malnar (ABSENT)
Passed
EXECUTIVE SESSION
Councilmember Malnar arrived at the meeting.
Council held an executive session to receive legal advice, to consider its position, and to provide
instruction/direction to the City Attorney and discussion or consideration of audit records exempt by law
from public inspection (A.R.S. §38-431.03 (A)(2)(3)).
A motion was made by Vice Mayor Joyce Clark, seconded by Councilmember Ian Hugh to
adjourn the executive session.
AYE: Mayor Jerry Weiers
Vice Mayor Joyce Clark
Councilmember Ian Hugh
Councilmember Ray Malnar
City Council Meeting Minutes -April 30, 2019 Page 2 of 11
Councilmember Lauren Tolmachoff
Councilmember Bart Turner
Other: Councilmember Jamie Aldama (ABSENT)
Passed
Mayor Weiers adjourned the executive session at 9:49 a.m.
WORKSHOP SESSION
Mayor Weiers reconvened the meting at 9:54 a.m.
1. FY2019-20 BUDGET WORKSHOP (FOLLOW UP)
Presented by: Vicki Rios, Director, Budget and Finance
Lisette Camacho, Assistant Director, Budget and Finance
Amy Lindsay, Budget Administrator
Ms. Bower read the item by title.
Ms. Rios presented follow up on the questions raised during department budget presentations
regarding the revenues for Foothills Recreation Aquatic Center (FRAC) and the use of Highway
User Revenue Fund (HURF) and Transportation Sales Tax revenues.
Councilmember Tolmachoff asked if bond funding was used for the black and yellow parking lots.
Ms. Rios said that was correct. The funds were not from transportation bonds, but rather excise
tax bonds.
Councilmember Tolmachoff asked if all of the bond capacity had been used.
Ms. Rios would get back to Council with the information. Projects such as parks and parks'
parking lots were typically paid for from general obligation bonds.
Councilmember Tolmachoff said there was need for parking lots and roads in the parks. The
projects would consume a huge amount of the budget and she wanted to explore options for
funding.
Councilmember Tolmachoff said the FRAC was covering about 80% of its operating costs. The
cost to the City was approximately $265,000.
Mojgan Vahabzadeh, Program Manager, presented details on the follow up questions regarding
the community activity detail for the Arts Program.
Vice Mayor Clark asked for clarification on the $50,000 Centerline District Arts & Cultural
Initiatives Grants.
Ms. Vahabzadeh explained that there were five grants at $10,000 each.
Ms. Rios addressed the previous questions regarding Glendale Works. There was a total of
$110,000 budgeted. The program's cost was approximately $100,000. She asked for Council
feedback for the use of the $10,000 excess.
Vice Mayor Clark asked for a breakdown of the $110,000.
City Council Meeting Minutes-April 30, 2019 Page 3 of 11
Stephanie Small, Community Services Director, said staff had not received all of the invoices from
the Phoenix Rescue Mission. The use of the $40,000 in Community Development Block Grant
(CDBG) funding was limited. The breakdown would be ready once the invoices were received.
Ms. Small said it had been suggested that the extra $10,000 budgeted for the program be used
for signage.
Mayor Weiers supported keeping the $10,000 in the budget. The program had been incredibly
successful. It currently operated four days a week and he would like to see it at five days per
week.
Ms. Rios provided information on the Community Assistance Program (CAP) Local Match and an
explanation regarding internal service charges.
Ms. Rios addressed the issue of the Glendale Regional Public Safety Training Center's
(GRPSTC) landscaping. The City's partners in the facility had already adopted budgets for next
year and so there was no opportunity for additional funding. However, the plan was to use other
partnerships, such as Maricopa County Adult Probation, to cover the landscaping costs.
Councilmember Tolmachoff asked for clarification regarding the Strategic Initiatives
non-departmental budget that indicated a quantity of one for $145,000.
Ms. Rios said the amount should be moved to Professional and Contractual. It was funding that
would be used for: a consultant to work on organizational development for the Engineering
Department; Catapult for the branding initiative; a business attraction strategist; customer service
training; and software for the Valley benchmark cities. It was in non-departmental because it was
a citywide benefit.
Councilmember Tolmachoff asked about the $54,000 for Community Activity and the $80,000 in
IT Charges.
Ms. Rios said the $54,000 was for the second piece of the Census Supplemental and the IT
Charges were for the new request for service (RFS) system.
Mr. Phelps presented follow up regarding the Independent Internal Audit Program. He explained
that former Assistant City Manager Tom Duensing was originally tasked with improving the
Internal Audit Program. Mr. Duensing had provided recommendations prior to leaving the City's
employ. The recommendations included a model built around an independent audit committee
and the use of a large body of independent auditors.
Rob Sweeney, Interim Assistant City Manager, provided information on the best practices for an
Internal Audit Program, how peer jurisdictions conducted internal audits, and the proposed
recommendations for the City.
Mr. Phelps explained the role of the proposed Internal Audit Committee and presented information
on an Ethics Hotline which was embedded in the Independent Internal Audit Program.
Councilmember Tolmachoff asked if the Audit Committee would have any information on reports
made to the Ethics Hotline.
Mr. Phelps said there would be further discussion regarding how the program would work and
putting the framework in place.
City Council Meeting Minutes-April 30, 2019 Page 4 of 11
Mr. Sweeney said the Audit Program Manager would be a direct report to the director of the
Organizational Performance Department.
Councilmember Malnar asked who would provide the audit report to Council.
Mr. Phelps replied that the draft audit would go to the Audit Committee for review and acceptance
and would then go to Council for formal adoption.
Mr. Sweeney provided next steps on the Independent Audit Program, which included amending
City Code.
Mr. Phelps clarified that the Audit Program Manger would functionally report to the Audit
Committee, but administratively report to the director of the Organizational Performance
Department.
Councilmember Turner said prior to 2012, the City Auditor reported to the City Manager. In 2012,
it was discovered through an external audit, that there were very serious and multi-million dollar
issues regarding the Risk Management Trust Fund. One of the recommendations from the audit
was to create an independent City Auditor. Council had taken the recommendation and had the
City Auditor reporting administratively to the City Manager and functionally to the Council.
Councilmember Turner said the process had worked quite well since 2014 and moving to the
proposed program was a step backward. The auditor in other Valley cities was an official hired or
appointed by Council which was the direction he preferred.
Councilmember Turner supported the creation of an Audit Committee. Council could see how it
worked for a year. After the year, with recommendations from the Audit Committee, the structural
reporting changes could be addressed.
Vice Mayor Clark wanted the audit plan to be referred to as risk-based compliance so that both
elements were included.
Mr. Phelps said the risk-based assessment helped create the audit plan and within the audit plan,
there were different types of audits, of which compliance was one.
Vice Mayor Clark was comfortable with the idea of an Audit Committee because three
Councilmembers would be members. She asked if the audit report would be posted on the City's
website.
Mr. Phelps said it would.
Vice Mayor Clark was concerned with the Audit Program Manager reporting to the Department of
Organizational Performance. The position should have as much independence as possible.
Mr. Phelps explained the reasoning for the proposed chain-of-command.
Vice Mayor Clark asked if it was possible to codify in the ordinance that the Audit Program
Manager would functionally report to the Audit Committee and administratively to management.
Mr. Phelps said it was possible.
Councilmember Tolmachoff was uncomfortable with the proposed chain-of-command. She felt the
Audit Program Manager should report directly to the Audit Committee and to the City Manager.
City Council Meeting Minutes-April 30, 2019 Page 5 of 11
Mr. Phelps said the audit plan would be developed by the Audit Committee. Best practices
supported the proposed chain-of-command. He did not have the capacity for administrative tasks
such as approving time cards and vacation tracking.
Councilmember Tolmachoff said the responsibilities could be delegated but the administrative
connection between the Auditor and the City Manager was important. It could be included in the
ordinance that the City Manager could delegate the administrative responsibilities to a director, but
the internal auditor was still connected by organizational chart to the City Manager.
Mr. Phelps said the dotted line could be changed to a direct line to the City Manager in the
organizational chart. The issue was maintaining independence.
Councilmember Malnar supported the creation of an engaged Audit Committee. He asked if the
number of audits would increase.
Mr. Phelps said the number of annual audits would depend on the audit plan and the priorities of
Council.
Vice Mayor Clark agreed with Councilmember Tolmachoff's suggestion for direct reporting of the
Audit Program Manager to the City Manager.
Councilmember Turner said the audit plan was crucial. One of the values of having an internal
auditor who was part of the organization was institutional knowledge and trust. Back in 2012, the
Council and citizens did not know that the Risk Management Trust Fund was having issues
because it was being hidden. Using external auditors would not expose that type of situation. He
asked who would hire and fire the Audit Program Manager.
Mr. Phelps said the position would be under the authority of the City Manager via the existing
personnel policies and procedures.
Councilmember Turner expressed concern that the position would be hired and fired by
management. He suggested that the process be taken in steps. The Audit Committee could be
established first and then in a year or so, its feedback could be utilized for further actions.
Mayor Weiers asked what was needed from Council.
Mr. Phelps said from a budgetary perspective, there was no action to be taken. Consensus was
needed to move forward with regulatory changes. With consensus, he would move forward with
the reduction of one full-time employee (FTE) and bring the proposal back to Council for further
review and potential adoption.
Councilmember Turner requested that the item be postponed until Councilmember Aldama was
available.
Mayor Weiers said there was consensus to move forward.
Councilmember Tolmachoff clarified that the change of direct reporting to the City Manager would
be included.
Mr. Phelps said that was correct.
Mayor Weiers noted that Councilmember Aldama would have an opportunity to vote on the issue
when it was brought back to Council for adoption.
City Council Meeting Minutes -April 30, 2019 Page 6 of 11
Councilmember Tolmachoff asked if the item would come back to a future workshop for further
discussion.
Mr. Phelps said staff would come back at the May 14th Council meeting with the appropriate
language and legislative actions for Council to consider.
Vice Mayor Clark was more conformable with the ordinance language being brought back to a
workshop. It would give Councilmember Aldama a chance to weigh in on the ordinance itself.
Ms. Rios clarified a comment she had made earlier. Parking lots at the stadium were funded by
general obligation bonds not excise tax bonds. She wanted Council to know that there was no
capacity to issue excise tax bonds.
Councilmember Turner asked if there was capacity to move up the work on parking lots at parks.
Ms. Rios replied there was Capital Improvement Program (CIP) funds, but no capacity to issue
additional bonds. Within the CIP, Council would have to eliminate a project in order to move
forward on the parking lots.
Councilmember Tolmachoff asked if any savings in the pavement management program could be
utilized for other projects.
Ms. Rios said staff would follow up and provide information regarding the capacity of the
pavement management funds.
2. PROPOSED REVISIONS TO GLENDALE CITY CODE, CHAPTER 2, ARTICLE III, DIVISION 3 -
MEET AND CONFER PROCESS
Presented by: Kevin Phelps
Ms. Bower read the item by title.
Mr. Phelps provided background on the meet and confer ordinance issues. There were questions
regarding the interpretation of the City's memorandum of understanding (MOU) with the Glendale
Fire Association. The Association interpreted the MOU as a binding contract. The City did not
consider the MOU as a legal contract. The issue had gone before an arbitrator, the District Court,
and then to the Court of Appeals. The final outcome was that budgetary elements rested with the
elected body, not the City Manager. A slight modification to the meet and confer ordinance was
being proposed as a result of the situation. The term "MOU" would be eliminated and issues
would only go to an arbitrator in the event of an impasse.
Vice Mayor Clark asked if personnel issues were still under the purview of the City Manager's
Office.
Mr. Phelps said that was correct as long as there was no budgetary impact.
Mr. Phelps said staff would come back with the specific ordinance changes at an upcoming
workshop if there was consensus to move forward.
Vice Chair Clark asked if the change would have any impact on the budget.
Mr. Phelps said the current MOUs with police and fire were included in the current budget.
Mayor Weiers said there was consensus to move forward.
City Council Meeting Minutes -April 30, 2019 Page 7 of 11
3. FY2019-20 BUDGET WORKSHOP (OVERVIEW)
Presented by: Vicki Rios, Director, Budget and Finance
Lisette Camacho, Assistant Director, Budget and Finance
Amy Lindsay, Budget Administrator
Ms. Bower read the item by title.
Ms. Rios presented an overview of the budget impacts for the arbitration outcome for firefighters,
captains and engineers.
Mr. Phelps provided the background on the arbitration ruling regarding the City's MOU with
Firefighters Local 493. He outlined the challenge of annual compensation versus hourly
compensation and presented data on benchmark cities for hours worked and compensation.
Councilmember Hugh asked why other Valley cities worked 56-hour shifts while the City's
firefighters worked a 52-hour shift.
Mr. Phelps did not know the history of the issue.
Councilmember Tolmachoff understood the MOU did not speak to any specific methodology.
Mr. Phelps said that was correct and it made the arbitrator's decision puzzling.
Councilmember Tolmachoff said the data spoke for itself. She suggested a compromise on the
proposed increase to split the difference.
Councilmember Malnar supported the suggestion. He asked for clarification of the 52-hour versus
the 56-hour week.
Terry Garrison, Fire Chief, explained scheduling and a 21-day cycle. The 52-hour week was
utilized rather than paying overtime for excessive hours. He explained the use of the Kelly Days.
A Kelly Day was a day off given to firefighters to avoid paying overtime.
Vice Mayor Clark said the City was above other Valley cities in terms of pay, with the exception of
Scottsdale, when rates were calculated on a 52-hour week. She supported the incorporation of a
1% increase.
Councilmember Hugh agreed with Councilmember Tolmachoff suggestion of 1.25%.
Councilmember Turner said in other cities, overtime was paid at time and a half but in Glendale,
overtime was given as a Kelly Day.
Councilmember Malnar said, in order to compare wages, the underlying basis needed to be equal
otherwise the financial logic was missing. He asked about the compensation increase last year.
Mr. Phelps stated last year's recommended budget did not have an increase for the three fire
positions because the positions were at the top of the market.
Councilmember Malnar asked if all positions in the Fire Department were hourly under the current
MOU.
Mr. Phelps said that was correct.
City Council Meeting Minutes -April 30, 2019 Page 8 of 11
Councilmember Malnar said it was difficult to compare what was happening in other cities and a
fair and equitable way to compare was needed.
Mr. Phelps had requested last summer that staff research the 52- and 56-hour week to see which
one was most cost efficient. The report showed that the difference between the 52-hour week
with the Kelly Days versus a 56-hour week was approximately $1.1 million in a budget year. The
City had outstanding Fire and Police Departments and the goal should be to pay toward the top
end. The $1.1 million could be used for additional services.
Councilmember Tolmachoff clarified that last year's budget included a step increase, but no
additional increase.
Mr. Phelps said that was correct.
Councilmember Tolmachoff asked if the MOU required the City to be at the top of the market
average.
Jim Brown, Human Resources Director, said the MOU required compensation to be within 100%
to 105% of the market average.
Councilmember Tolmachoff asked if other cities used Kelly Days.
Chief Garrison said other Valley cities did not use Kelly Days.
Councilmember Tolmachoff asked for the estimated cost of overtime for a 56-hour schedule.
Mr. Phelps replied the analysis revealed the cost was approximately $1.1 million.
Ms. Rios reported a majority of firefighters in the classifications were at the top step.
Councilmember Turner said the step increases rewarded the increased levels of experience and
the market increase protected citizens by keeping experienced firefighters from leaving. He
supported changes being made during negotiations for the next MOU.
Vice Mayor Clark said the negotiations must include discussions regarding the hourly disparity.
City firefighters were working less hours than every city in the Valley and were still well paid.
Councilmember Hugh said Mr. Phelps' recommendation was increases of 5% for engineers and
2.5% for firefighters and captains. He suggested 2.5% for engineers and 1.25% for firefighters
and captains as a fair compromise.
Ms. Rios said the 2.5% for engineers and 1.25% for firefighters and captains might not cut the
overall dollar figure in half. It would depend on the number in each position.
Vice Mayor Clark commented it still did not take into account the difference in the number of
hours worked. The proposal increased an already generous salary. She would rather be more
conservative and provide all three categories with a 1°A) increase.
Mayor Weiers inquired as to the number of engineers.
Mr. Rios said there were 58 fire captains, 50 fire engineers and 124 firefighters.
Councilmember Tolmachoff asked if the step increase was already in the budget.
City Council Meeting Minutes-April 30, 2019 Page 9 of 11
Ms. Rios replied the original steps were in the budget but there was a dual impact. For those at
the top, it was an increase and the steps were also increased. It was what comprised the
$758,000 impact.
Councilmember Tolmachoff did not think it would be resolved today because it was a very
complicated issue. She noted with the 52 hours and using Kelly Days, the City saved $1.1 million.
Mr. Phelps provided clarification. If the City changed to the 56-hour week, eliminated the Kelly
Days, implemented the same programming hours as other cities and eliminated 15 FTEs, the City
would save $1.1 million.
Mayor Weiers said there was no consensus for the 1% across the board increase.
Mayor Weiers said there was consensus for the recommendation of 2.5% for engineers and
1.25% for captains and firefighters.
Mr. Phelps confirmed the consensus of 2.5% for engineers and 1.25% for captains and firefighters
and the savings identified be placed in the contingency fund.
Ms. Rios provided follow up on the request for an additional Council Office Assistant.
Vice Mayor Clark said the proposal was hers and she thought it was long overdue. The Council
Office did not operate efficiently under the 3-2-1 model.
Councilmember Tolmachoff said the item directly impacted how Councilmember Aldama operated
his office. He was not able to be present for the workshop due to a family emergency and the item
should be placed on the May 14th workshop.
Ms. Rios said changes could be made to the budget up to the final adoption but the budget did
have to be published in the newspaper in accordance with state statutes. The deadline to have
the budget schedules prepared was next Tuesday. If Council wanted to have further discussion
on the item, adjustments could be made within the budget, but once published, the budget amount
could not increase. She recommended putting the funding in the budget as a placeholder for
further discussion without impacting deadlines and publication.
Mayor Weiers asked for the total impact to the budget for the proposed position.
Ms. Rios replied it was $114,945.00.
Councilmember Malnar proposed that Council move the item forward to meet publication
deadlines. If Council decided not to move forward after further discussion, it could be removed.
Councilmember Turner supported adding the additional position to the Council office. He currently
shared an assistant and it impacted efficiency. Proper staffing would provide better service and
increased value to the residents.
Ms. Rios stated if the funding was included, a reduction would need to be made somewhere in
the budget. She suggested reducing the funds put into contingency as a result of the fire staff
compensation discussion.
Mayor Weiers said if a few Councilmembers chose not to have an assistant, their district office
should receive the difference to be fair with all the other offices.
Vice Mayor Clark said four Councilmembers were not served equally under the current system.
City Council Meeting Minutes -April 30, 2019 Page 10 of 11
She asked why the Councilmembers who did not have an issue with the situation, would be given
extra money.
Councilmember Tolmachoff said it was only fair to have equal budgets for every district and she
was not in favor of any district having a larger budget for staffing than her district.
Vice Mayor Clark had spoken with Councilmembers Turner and Malnar about the issue but had
not spoken with Councilmember Aldama. She assumed, based on Councilmember Turner's
comments, Councilmember Aldama would support the funding increase. She did not agree that if
a Councilmember chose not to have an assistant, they automatically received additional funding.
Councilmember Hugh said it was not extra money, but was the same amount for every
Councilmember, per district.
Councilmember Turner said there should be a budget for staffing and if not used, it reverted back
to the General Fund. As Councilmembers changed, it would be the best way to address future
needs.
Mayor Weirs said there was consensus for a placeholder in the budget and further discussion at
the May 14th workshop.
Ms. Rios provided a wrap up of the budget overview.
ADJOURNMENT
Mayor Weiers adjourned the meeting at 2:29 p.m.
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
meeting of the Glendale City Council of Glendale, Arizona, held on the 30th day of April, 2019.
I further certify that the meeting was duly called and held and that a quorum was present.
Dated this 9th day of May, 2019.
ulre K. Bower, MMC, City Clerk
City Council Meeting Minutes -April 30, 2019 Page 11 of 11