The Mayor and Council approved eliminating the exemption for food for home consumption from the City’s retail sales tax at its February 2, 2010 Policy meeting. Our best estimate for this additional revenue is $50 million per year. By implementing the tax April 1, we will collect approximately $62.5 million over the 15-month period from April 1, 2010 through June 30, 2011.

While this additional revenue will not eliminate the need for cuts to existing services, it will restore many critical city services and programs currently proposed for cuts. At the February 9, 2010 Work Study meeting, staff will present a plan that recommends the specific programs and services that should be restored with this new funding.

In addition, staff will recommend that some of this new funding be earmarked for the specialty sales tax funds that pay for public safety, transit, and parks and preserves. As we have discussed in previous Council meetings, these funds are also under severe stress from the economic downturn. As we develop the allocation plan, we will consider the following priorities:

· Fiscal Responsibility

· Public Safety

· Seniors

· Community Enrichment

· Youth

· Libraries and Learning

· Critical Infrastructure and Transportation

RECOMMENDATION

This report is for information only. No Council action is required.

CITY COUNCIL REPORT
WORK STUDY SESSION AGENDA
	David Cavazos City Manager	AGENDA DATE:		February 9, 2010
FROM:	Karen Peters Government Relations Director	ITEM:	3
SUBJECT:	STATE LEGISLATIVE UPDATE

This report seeks approval, guidance, and direction from the Mayor and Council on state legislation of interest to the City.

February 9 is the 30th day of the Second Regular Session of the 49th Legislature. Twelve-hundred and twenty eight bills (1228) have been introduced to date.

STATE LEGISLATION OF INTEREST

Information that is new from the last legislative update report is indicated in bold.

REVENUE & TAXES

Bills to Support

HB 2489: Bonding; Net Premiums (Rep. Steve Yarbrough, R – Chandler increases the amount of net premium that may be available to 10% of par value of the bonds issued. It provides that premium can be used to pay costs and placed in a debt service reserve to pay only interest. Staff believes that these changes are favorable for the City’s capital bond program. This bill passed the House Ways and Means Committee by a vote of 5 – 3 and now awaits action in the House Rules Committee.

Bills to Oppose

HB 2250: Arizona’s Job Recovery Act (Rep. Kirk Adams, R – Mesa) makes numerous changes to state income tax, property tax assessment ratios, and the enterprise zone program. Some of these changes would negatively impact city revenue sharing, as well as reduce the City’s bonding capacity. The bill was approved in the House by a vote of 34-25 and awaits a Senate committee assignment.

HB 2257: Municipal Taxation and Fees; Notice (Rep. Frank Antenori, R – Tucson) requires municipalities to give written notice of at least 90 days before any new or additional taxes or fees on commercial entities become effective. As written, this bill would make it difficult for cities to collect current debts. This bill awaits a hearing in the House Government Committee.

HB 2407: Municipal Sales Tax; Utilities (Rep. Frank Antenori, R – Tucson) prohibits municipalities that charge a transaction privilege tax, sales or use tax from increasing the rate of taxation on any business classification or other class of taxpayers unless the rate increase applies equally to all classes of taxpayers subject to the tax. Staff believes that the language in HB 2407 will lead to confusion and negatively impact our current tax collection methods. This bill passed the House Ways and Means Committee by a vote of 5 – 3 and now awaits action in the House Rules Committee.

HB 2512: Municipal Taxes; Auditors and Collectors (Rep. Rick Murphy, R – Glendale) prohibits municipalities from employing auditors on a contingent fee basis for auditing transaction privilege taxes and from contracting with a third party to collect transaction privilege taxes. This bill would impact the City since it currently contracts with private companies for tax collections under certain circumstances. This bill was held in the House Ways and Means Committee on February 1.

PLANNING & ZONING

Bills to Oppose

HB 2249: Municipal Development Fees; Refunds (Rep. Andy Biggs, R – Gilbert) requires that a city must refund impact fees if the monies are not spent in seven years after the fee was collected. There are some projects, such as water/wastewater plants, which take a number of years before enough money is collected to begin building these infrastructure projects. If these monies were refunded, then residents outside of the impact fee area would need to subsidize these projects. HB 2249 passed the House Government Committee 6 – 1 and awaits action in the House Rules Committee.

HB 2259: Development Fees; Proportional Share (Rep. Andy Biggs, R – Gilbert) prohibits cities from charging an impact fee that is more than what an existing resident is paying for current infrastructure costs. The problem with this concept is that new growth requires new infrastructure. Established neighborhoods have already paid their portion of major infrastructure costs when they were built. If passed, the burden of paying for new streets, water/water water plants, police and fire stations would be shared by all our residents. This bill passed the House Government Committee 6 – 2 and awaits action in the House Rules Committee.

HB 2596: Free Exercise of Religion (Rep. Steve Yarbrough, R – Chandler) proposes to prevent governmental entities from imposing an “unreasonable burden” on a person’s exercise of religion. It then defines “unreasonable burden” as “a person is prevented from using the person’s property in a manner that the person finds satisfactory to fulfill the person’s religious mission.” This means that any one person or church gets to set the standard to determine unreasonable burden and define their own religion. In addition, HB 2596 would require the City to demonstrate, if the religion were prevented from being exercised on a particular property, that a suitable alternative property is available nearby. It also requires the City to understand the financial resources of the person/religion, so it can determine whether the person can afford the alternative location. The alternative also has to be acceptable to the person. Staff believes that this is totally unworkable, as it would require the city to investigate the church’s resources so as to make a determination. HB 2596 is vague and would be very difficult to enforce. This bill passed the House Government Committee 6 – 0 and awaits action in the House Rules Committee.

ECONOMIC DEVELOPMENT

Bills to Oppose

HB 2504: GPLET; Lease Records and Reporting (Rep. Rick Murphy, R – Glendale) makes numerous changes to the government property lease excise tax, including increasing tax rates for all leased properties effective January 1, 2011 (but grandfathers in leases and development agreements entered into before that date), limiting the term of leases to 30 years, and requires that government lessor convey property to the lessee at the end of the 30-year term. This bill awaits a hearing in the House Ways and Means Committee.

PUBLIC SAFETY

Bills to Support

SB 1053: Minors; Electronic Cigarettes; Prohibition (Sen. Carolyn Allen, R – Scottsdale) prohibits the sale of electronic cigarettes to minors. SB 1053 was approved by the Senate 28-0 and awaits committee assignment in the House.

SB 1056: Sentencing; Guilty Except Insane (Sen. Jonathan Paton, R – Tucson) requires individuals that have been sentenced “guilty except insane” to register as a sex offender if the verdict involved a sexual offense. This bill was approved by the Senate Rules Committee and awaits action in the Senate Committee of the Whole.

SB 1144: Drug Offenses; Definitions (Sen. John Huppenthal, R – Chandler) adds a number of drugs to the “dangerous drugs” list in the criminal code. This bill passed the Senate Judiciary Committee by a vote of 7 – 0 and now awaits action in the Senate Rules Committee.

SB 1165: DUI; License Suspension (Sen. Linda Gray, R – Glendale) permits the suspension of the drivers licenses for those convicted as driving under the influence of an illegal drug. This bill was approved Senate Rules Committee and awaits hearing in the Senate Committee of the Whole.

HB 2141: Aggravated Assault; Park Rangers (Rep. Steve Montenegro, R – Litchfield Park) elevates the crime of assaulting a state or park ranger to the current list of aggravated assaults. This legislation was introduced per the request of the Parks Department and approval of Council. HB 2141 awaits a hearing in the House Judiciary Committee.

HB 2431: Written Accident Reports; Motor Vehicles (Rep. Adam Driggs, R – Phoenix) increases the dollar threshold for completion of non-injury accident reports from $1000 to $2500. Current state law requires that an accident report be prepared for non-injury accidents where damage to the vehicle is deemed to be in excess of $1000. In fiscal year 2008, Phoenix Police responded to 24,366 collisions, of which 14,396 did not involve injury. A Police study determined that 43 percent of the total non-injury accidents in 2008 were under $2500 in damages. To improve efficiency with fewer resources, staff requested approval to increase the threshold. HB 2431 awaits a hearing in the House Transportation and Infrastructure Committee.

Bills to Oppose

SB 1015: Liquor Establishments; Weapons (Sen. Jack Harper, R – Peoria) changes the posting requirements for signs prohibiting weapons in establishments that serve alcohol. Signs would have to be posted within 20 feet of a cash register, at every entrance, and behind the bar. Staff is concerned that the bill would create a loophole allowing prosecution only of persons carrying firearms in these places who did not know that they could not possess their weapons. SB 1015 awaits a hearing in the Senate Commerce and Economic Development Committee.

SB 1098: Arizona Manufactured Firearms; Regulation (Sen. Russell Pearce, R – Mesa) exempts firearms that are manufactured and sold within the state from federal regulation and registration laws. Staff is concerned that it would be almost impossible to know who is buying these weapons and when they might be transported across the state line. This bill passed in the Senate Judiciary Committee 4-3 and awaits a hearing in the Senate Rules Committee.

SB 1153: State Preemption; Knives (Sen. Chuck Gray, R – Mesa) prohibits local governments from regulating the possession or sale of knives. This bill passed the Senate Rules Committee and awaits a hearing in the Senate Committee of the Whole.

HB 2042: Unlawful Roadside Solicitation of Employment (Rep. John Kavanagh, R – Fountain Hills) establishes a class 3 misdemeanor for both the driver and occupant of a vehicle if the driver stops on a roadway to hire someone for work. Staff believes that this legislation would be virtually impossible to enforce. In addition, state law already exists for impeding traffic on a roadway, making this bill unnecessary. HB 2042 passed the House Judiciary Committee by a vote of 5 – 2 and now awaits action in the House Rules Committee.

HB 2043: Law Enforcement; Duty Fitness Examination (Rep. John Kavanagh, R – Fountain Hills) establishes new procedures as to when a law enforcement officer may receive the results of a failed medical or psychiatric exam. Staff is not opposed to sharing these exams with affected personnel in an appropriate manner. However, the current language would make it difficult to address sensitive situations in which the officers may pose a threat to themselves and others. Government Relations will continue to work with stakeholders to arrive at a compromise on this bill. HB 2043 was approved by the House Rules Committee and now awaits action in the House Committee of the Whole.

HB 2246: Regulation of Fireworks (Rep. Andy Biggs, R – Gilbert) permits the sale of consumer and display fireworks. This bill is similar to one that was vetoed by Governor Brewer last session. Other than the local preemption from regulating display fireworks, staff is concerned that more people could be physically harmed by these devices and that the state fire marshal, who is tasked to adopt and enforce rules related to the storage of fireworks, is not funded sufficiently to adequately enforce the proposed law. HB 2246 was approved by the House Commerce Committee and awaits a hearing in the House Rules Committee.

HB 2327: Juveniles; Interrogations; Electronic Recording (Rep. Cecil Ash, R – Mesa) requires a law enforcement agency to electronically record any statement made by a juvenile during interrogation in its entirety and keep without alteration until the final disposition of the juvenile’s case. This bill awaits hearings in the Judiciary, Military Affairs and Public Safety, Health and Human Services, and Rules Committees.

HB 2338: Yellow Lights; Duration; Photo Enforcement (Rep. Frank Antenori, R – Tucson) calls for the Arizona Department of Transportation to establish a yellow light duration standard that a community must adopt if it is to operate red light photo radar systems. Federal standards already exist that Phoenix has applied to our traffic signals. Staff is concerned that an unspecified one-size standard will jeopardize the purpose of these photo systems; public safety. HB 2338 passed 5-2 the House Transportation and Infrastructure Committee and awaits a hearing in the House Rules Committee.

HB 2347: Concealed Weapons; Permit; Justification (Rep. Frank Antenori, R – Tucson) makes several changes to the firearms statutes. The bill provides that concealed weapons permits do not need to be carried on one’s person. The legislation would also make it easier for those with concealed weapons permits to carry their firearms in establishments that serve liquor yet prohibit weapons. HB 2347 awaits a hearing in the House Military Affairs and Public Safety Committee.

HB 2406: Liquor Establishments; Weapons (Rep. Frank Antenori, R – Tucson) changes the posting requirements for signs prohibiting weapons in establishments that serve alcohol. Signs would have to be posted within 20 feet of a cash register, at every entrance, and behind the bar. Staff is concerned that language in the bill would create a loophole allowing prosecution only of a persons carrying firearms in these places who did not know that they could not possess their weapons. HB 2406 is awaiting a hearing in the House Commerce Committee.

Bills to Watch

SB 1029: Law Enforcement Officers; Disciplinary Actions (Sen. Russell Pearce, R – Mesa) codifies in state law the causes that can trigger disciplinary actions toward a law enforcement officer. Staff is concerned that this legislation preempts local control by placing more of our personnel policies in the hands of the state. Government Relations has been working with a stakeholders group to make the language more reasonable. SB 1029 was approved by the Senate Rules Committee and awaits a hearing in the Senate Committee of the Whole.

IMMIGRATION

Bills to Oppose

SB 1070: Immigration; Law Enforcement; Safe Neighborhoods (Sen. Russell Pearce, R – Mesa) proposes numerous changes to laws dealing with immigration. Some of these changes include:

· prohibiting local governments from restricting in any way their law enforcement officers from enforcing federal immigration law;

· establishing the crime of trespassing on undocumented persons;

· permits law enforcement officers to arrest persons believed to be undocumented without a warrant; and

· makes it a class one misdemeanor for a driver to impede traffic while in the act of offering work to a nearby pedestrian.

Many of these provisions, as currently written, create liability for the City and other provisions preempt the ability to effectively manage our police officers. Several other bills containing various parts of this omnibus bill are simultaneously moving through the legislature. Staff is ready and willing to work with the bill sponsor to address our concerns. SB 1070 passed Rules Committee and awaits a hearing in the Senate Committee of the Whole.

NEIGHBORHOODS

Bills to Support

HB 2479: Foreclosure Deeds; Buyer Identification (Rep. Rep. Bill Konopnicki, R – Safford) requires that foreclosure documentation contain a name and contact information of the person responsible for the property. This information will assist the City in contacting the appropriate person to address problems that may be associated with a foreclosed home (e.g. graffiti, obnoxious weeds, broken windows). This bill awaits a hearing in the House Government Committee.

Bills to Oppose

HB 2161: Payday Loans; Regulation (Rep. Andy Tobin, R – Paulden) regulates the payday loan industry and authorizes continued operations beyond current 2010 sunset date. This bill was held in the House Banking and Insurance Committee.

SB 1166: Property Tax Classification; Historic Residences (Sen. Linda Gray, R – Glendale) repeals the reduced property tax classification for historic residential property. Under the current law, qualifying historic residences are assessed at 5 percent rather than the 10 percent assessment ratio that applies to other homes. This bill was held in the Senate Finance Committee.

WATER AND ENVIRONMENT

Bills to Support

SB 1141: CAGRD Revenue Bonding; Sustainability Policies (Sen. John Nelson, R – Litchfield Park) allows the Central Arizona Groundwater Replenishment District (CAGRD) to issue revenue bonds to help pay for water supplies to meet its replenishment obligation. The bill strengthens the economic viability of the CAGRD and reduces the likelihood that Central Arizona Project (CAP) revenues would be borrowed to fund CAGRD replenishment. Since the bill reduces some of the uncertainty regarding how CAGRD will meet future obligations, it is beneficial to CAP stakeholders in the three-county district. SB 1141 passed the Senate Natural Resources, Infrastructure and Public Debt Committee by a vote of 7 – 0 and now awaits action in the Senate Rules Committee.

HB 2081: Department of Water Resources; Continuation (Rep. Lucy Mason, R – Prescott) extends the Department of Water Resources an additional ten years, to July 1, 2020. This bill passed the House Water and Energy Committee by a vote of 8 – 0 and now awaits action in the House Rules Committee.

HB 2083: Drought Emergency Groundwater Transfers (Rep. Lucy Mason, R – Prescott) allows for transfers between groundwater basins due to drought. Staff requests support for this measure. HB 2083 passed the House Water and Energy Committee by a vote of 7 – 0 and now awaits action in the House Rules Committee.

HB 2152: Voluntary Remediation Program; Continuation (Rep. Ray Barnes, R – Phoenix) extends the Arizona Department of Environmental Quality’s Voluntary Remediation Program (VRP) for an additional ten years. VRP has played an important role in helping to clean up and redevelop contaminated properties. This bill passed the House Environment Committee by a vote of 8 – 0 and now awaits action in the House Rules Committee.

HB 2392: Illegal Dumping; Penalties (Rep. Barbara McGuire, D – Kearny) establishes new penalties for those found guilty of illegal dumping and sets up new procedures for affected landowners. Government Relations worked with the bill sponsor to ensure that the City’s Neighborhood Preservation Ordinance was not compromised. HB 2392 awaits action in the House Environment and Judiciary Committees.

Bills to Oppose

HB 2063: Solar Energy; Permit Fees (Rep. Tom Boone, R – Peoria) caps the city permit fee at $375 for solar energy panels and $150 for solar water heating systems. This measure restricts the ability of cities to set fees based on the amount of work necessary to adequately review and inspect the installation to insure safety. By limiting the fee amount that can be collected to support the service, it could cause a reduction in safety of the installation because municipalities may have to reduce the service to match the fee collected. Finally, it could shift some of the financial burden of permits and inspections to either the taxpayer or to other users who pay plan review and permit fees. Staff is ready and willing to work with the bill sponsor to address our concerns. HB 2063 is held in the House Water and Energy Committee.

MISCELLANEOUS

Bills to Support

SB 1373: County Library Districts; Cities; Taxes (Sen. Al Melvin, R – Tucson) allows cities in Maricopa and Pima Counties, whose residents pay a county library tax, to receive 75% of those monies for their own municipal library services. SB 1373 awaits Senate committee assignment.

SB1416: Regional Public Transportation Authority (Sen. Thayer Verschoor, R – Gilbert) codifies that the regional public transportation authority in Maricopa County must cooperate with state and local public transportation operators in areas of planning and project management, as well as finances. This bill awaits Senate committee assignment.

HB 2050: ASLAPR; Continuation (Rep. Steve Montenegro, R – Litchfield Park) extends the Arizona State Library, Archives and Public Records (ASLAPR) to July 1, 2010. Library staff has developed a good working relationship with ASLAPR over the years and, at times, has applied for grants made available via competitive application processes. HB 2050 passed the House by a vote of 58 – 0 and now awaits Senate Committee assignments.

HB 2154: Private Easements; Maintenance (Rep. Nancy Barto, R – Phoenix) clarifies the responsibilities between local governments and private land owners over maintenance of property in private easements located in the public right-of-way. This bill was approved by the House Government Committee 9 – 0 and awaits a hearing in the House Rules Committee.

HB 2478: PSPRS; Local Board Composition (Rep. Bill Konopnicki, R – Safford) allows the head of a merit system to designate another member of the merit system to serve as board member in his or her place. This bill was introduced on behalf of the City’s Retirement Office. This bill awaits a hearing in the House Public Employees, Retirement and Entitlement Reform Committee.

HB 2491: City Elections; Majority Vote (Rep. Steve Yarbrough, R – Chandler) clarifies the authority of cities to include in the count of ballots cast only the votes tabulated for an office for purposes of determining whether a candidate received the required majority to be elected in a primary. The City Charter and Code contain provisions that would be clarified by this bill. HB 2491 is awaiting a hearing in the House Judiciary Committee.

Bills to Oppose

HB 2282: Government Transparency; Political Subdivisions (Rep. Steve Montenegro, R – Litchfield Park) requires local governments to create and maintain a searchable internet website that contains a comprehensive database of all receipts and expenditures of public monies. This database would be very costly to construct and maintain. Staff is attempting to work with the bill sponsor to codify the City’s current financial disclosure practices. HB 2282 passed the House Government Committee by a vote of 6 – 3 and now awaits action in the House Appropriations and Rules Committees.

HB 2285: City Building Permit Fees (Rep. Steve Montenegro, R – Litchfield Park) requires that fees assessed by cities and towns for building permits or plans must be attributed to and cover the expense of the service for which the fee is assessed. As introduced, staff is concerned that the bill negatively impacts our current fee collection procedures. This bill passed the House Government Committee and now awaits action in the House Rules Committee.

HB 2340: Government; Grant of Public Monies (Rep. Frank Antenori, R – Tucson) mandates that political subdivisions must follow the state’s procurement code when purchasing goods or services. The bill would also apply to grants and general appropriations. HB 2340 was held in the House Government Committee.

HB 2452: Cities; Towns; Urbanized Areas; Incorporation (Rep. Frank Anternori, R – Tucson) requires a county board of supervisors to proceed with incorporation of an urbanized area without any input from the impacted city. Currently, a county board of supervisors may take action on a petition to incorporate territory within an urbanized area only if the city that caused the urbanized area; 1) adopts a resolution approving the proposed incorporation; or 2) fails to annex the urbanized area within six months of the filing of a legal petition seeking annexation of the area. HB 2452 awaits a hearing in the House Government Committee.

HB 2542: Political Signs; Public Right-of-Way (Rep. David Gowan, R – Sierra Vista) prohibits local governments from removing political signs placed in public rights-of-way 60 days before and 15 days after an election. The primary concern is public safety. Rights-of-way include roadways, sidewalks, traffic medians, and often visibility triangles at intersections. The bill would permit signs of any size in traffic medians and city staff, including police, could do nothing about it. This bill awaits a hearing in the House Government Committee.

RECOMMENDATION

Staff requests City Council approval, guidance and direction on these State legislative issues impacting the City.

LIQUOR LICENSE APPLICATIONS RECEIVED FOR THE PERIOD OF JANUARY 27, 2010 THROUGH FEBRUARY 2, 2010
GENERAL INFORMATION
TO:	Lisa Takata Executive Assistant to the City Manager	PACKET DATE:	February 4, 2010
FROM:	Mario Paniagua City Clerk
SUBJECT:	LIQUOR LICENSE APPLICATIONS RECEIVED FOR THE PERIOD OF JANUARY 27, 2010 THROUGH FEBRUARY 2, 2010

This report provides advance notice of liquor license applications that were received by the City Clerk during the period of Wednesday, January 27, 2010 through Tuesday, February 2, 2010.

INFORMATION

The liquor license application process includes the posting of a public notice of the application at the proposed location for twenty days and the distribution of an application copy or a copy of this report to the following departments for their review: Finance, Planning, Police, Fire, Street Transportation, Development Services, and the Maricopa County Health Department. Additionally, License Services mails a notice to all registered neighborhood organizations within a one-mile radius of each proposed business location (excluding Special Events).

Additional information on the items listed below is generally not available until the twenty-day posting/review period has expired.

LIQUOR LICENSE APPLICATIONS

Application Type Legend

O-

Ownership

L-

Location

N-

New

OL-

Ownership & Location

AOC-

Acquisition of Control

SE-

Special Event

Liquor License Series Definitions

	1 In State Producer	*	7 On sale-beer & wine	11 Hotel/Motel-all liquor on premises
	3 Microbrewery		8 Conveyance license-sale of all liquor on board planes & trains	12 Restaurant-all liquor on premises
	4 Wholesaler			12 Restaurant-all liquor on premises
	5 Government		9 Off sale-all liquor	14 Clubs-all liquor on premises
*	6 On sale-all liquor		10 Off sale-beer & wine	15 Special Event

*	On-sale retailer means any person operating an establishment where spirituous liquors are sold in the original container for consumption on or off the premises and in individual portions for consumption on the premises.

Dist	App. Type	Agent/Owner Name Business Name/Address Phone	Lic. Type	Protest Period Ends	Within 2,000 Feet of Light Rail	Proposed Agenda Date
2	N	Kim Kwiatkowski, Agent Circle K Store #5954 4815 East Carefree Hwy. 602-728-4783	10	2/26/10	No	3/10/10
4	SE	Lisa Nelson St. Gregory Roman Catholic Parish Phoenix (4/24/10) 3440 North 18^th Avenue 602-264-4488	15	N/A	N/A	4/7/10
6	SE	Sandra Franks Valley of the Sun Young Men’s Christian Association (2/27/10) 1030 East Liberty Lane 480-759-6762	15	N/A	N/A	*2/27/10
6	SE	Robert Blakesley Ahwatukee Board of Management, Inc. (3/13/10) 4700 East Warner Road 602-565-3089	15	N/A	N/A	3/10/10
7	O	Alex Smith, Agent The Boomerang Bar & Billiards 6601 West Thomas Road, #10 602-327-7020	6	2/19/10	No	3/10/10
7	SE	Brandiwynne Hunt The Junior League of Phoenix, Incorporated (2/26/10) 1826 West McDowell Road 602-469-0391	15	N/A	N/A	*2/26/10
7	L	Glorianna Ramirez Nueva La Bamba Bar 1605 West Broadway Road 602-510-6914	7	2/19/10	No	3/10/10
8	SE	Paula West Phoenix Sister Cities Commission, Inc. (3/26-3/28/10) 115 North 6^th Street 602-561-3539	15	N/A	N/A	3/10/10
8	SE	William Weigele Arizona Licensed Beverage Association, Inc. (4/1/10) 701 East Thunderbird Trail 602-302-7202	15	N/A	N/A	3/10/10

*Event Date – Application not received in time for Council review.

For further information regarding any of the above applications, please contact the City Clerk Department, License Services Section, at 602-534-3365.

RECOMMENDATION

This report is provided for information only. No Council action is required.

FOLLOW-UP: FEBRUARY 2, 2010 POLICY SESSION AGENDA
GENERAL INFORMATION
TO:	Mayor And City Council	PACKET DATE:	February 4, 2010
FROM:	David Cavazos City Manager
SUBJECT:	FOLLOW-UP: FEBRUARY 2, 2010 POLICY SESSION AGENDA

Attached are the February 2, 2010 Policy Session Minutes and the February 3, 2010 Formal Agenda Council/Citizen Requests/Comments.

CITY OF PHOENIX

CITY COUNCIL POLICY SESSION

TUESDAY, FEBRUARY 2, 2010 - 2:00 P.M.

CITY COUNCIL CHAMBERS

200 WEST JEFFERSON

Pursuant to A.R.S. § 38.431.02, notice is hereby given to the members of the City Council and to the general public that the City Council will hold a meeting open to the public on Tuesday, February 2, 2010, at 2:00 P.M. located in City Council Chambers, 200 West Jefferson, Phoenix, Arizona. Council members may participate by telephone. As indicated in the Agenda, the City Council may vote to go into Executive Session, which will not be open to the public, for the purpose of discussing those matters listed on the Agenda.

1:00 P.M. -

AN EXECUTIVE SESSION WAS CALLED FOR THIS TIME AT THE FORMAL MEETING OF JANUARY 10, 2010.

THE TIMES LISTED FOR AGENDA ITEMS ARE ESTIMATED. ITEMS MAY BE DISCUSSED EARLIER OR IN A DIFFERENT SEQUENCE.

Action Taken:

Mayor Gordon called the meeting to order at 2:10 p.m. with Council members Gates, Williams, Mattox, Simplot, Neely, Johnson, DiCiccio, and Vice Mayor Nowakowski present.

ESTIMATED

1. 2:00 P.M.-

COUNCIL INFORMATION AND FOLLOW-UP REQUESTS.

Action Taken:

Mayor Gordon and Council members made general announcements.

CONSENT AGENDA.

There is no Consent Agenda for consideration this week.

CALL FOR AN EXECUTIVE SESSION.

A vote to call an Executive Session may be held.

Action Taken:

Vice Mayor Nowakowski motioned City Council, pursuant to Arizona Revised Statutes, Section 38-431.02.A, meet in Executive Session on Tuesday, February 23, 2010 at 1:00 p.m. and Tuesday, March 2, 2010 in the East Conference Room, 12^th Floor of the Phoenix City Hall, 200 West Washington Street, Phoenix, Arizona. Councilman Mattox seconded the motion, which passed 9:0.

REPORTS AND BUDGET UPDATES BY THE CITY MANAGER.

Action Taken:

City Manager David Cavazos stated he would provide an update during the trial budget discussion.

ESTIMATED

2. 2:30 P.M.-

EMPLOYEE SERVICE RECOGNITION/EMPLOYEE SUGGESTION ANNOUNCEMENTS (NO REPORT)

Staff: Cavazos, Smith
(Presentation 10 min.)

This item is for information only. No City Council action is required.

Action Taken:

Councilman DiCiccio presented an Employee Service Recognition Award to Ms. Linda Robbins for 25 years of service with the City. Councilman Gates presented an Employee Service Recognition Award to Mr. Robert Klein for 30 years of service with the City. Councilwoman Neely presented an Employee Service Recognition Award to Mr. Patrick Brown for 25 years of service with the City.

City Manager David Cavazos recognized Mr. Mike Ziegler for his Employee Suggestion on bridge improvements which is expected to save the City $45 million.

ESTIMATED

3. 2:40 P.M.-

TWO PHOENIX YOUTHS WIN NATIONAL POSTER CONTEST: “WHAT HOME MEANS TO ME”

Staff: Miller, Dorney (Presentation 10 min.)

This report provides information about two public housing youth whose poster entries to the National Association of Housing and Redevelopment Officials (NAHRO), “What Home Means to Me” contest were selected as winners. A calendar of all the winning entries will be distributed to the Mayor and City Council.

This item is for information only. No City Council action is required.

Action Taken:

Acting Deputy City Manager Jerome Miller introduced Housing Director Kim Dorney who provided an overview of the campaign and presented the winners. Ms. Dorney explained this was a nationwide poster contest sponsored by the Housing America campaign and the National Association of Housing & Redevelopment Officials (NAHRO). Ms. Dorney indicated the Phoenix winners would be featured in the 2010 NAHRO calendar, and both would receive state and national-level awards. She added the posters would be displayed on Capital Hill in spring 2010 and then auctioned off with proceeds going towards scholarships. Ms. Dorney congratulated David Avila, resident of the Foothills property, and Karen Guzman, resident of Marcos De Niza.

Backup included in Council packet/City Clerk's Office.

ESTIMATED

4. 2:50 P.M.-

2009-10 AND 2010-11 TRIAL BUDGET

Staff: Cavazos, Zuercher, Gleason
(Presentation 10 min.)

This report provides proposed actions, including program and service cuts, to balance the City’s General Fund budget. The total deficit for 2009-10 and 2010-11 combined is $241.4 million. Several initiatives are proposed to reduce the amount of program and service cuts to $139.2 million. At this level of service cuts, 1,310.4 General Fund positions are proposed for elimination. Up to an additional 62.0 positions are proposed for reduction from special revenue and enterprise-funded departments. Another 7.0 positions are proposed for elimination due to department consolidations. In total, 1,379.4 positions are proposed for elimination.

*This item is for City Council guidance and direction.

Council approval is requested for the reduction to the retirement incentive and severance payment formulas. Council action is also requested to eliminate authorized but unfunded sworn Police and Fire positions in the General Fund and the Public Safety Funds.

Backup included in Council packet/City Clerk’s Office.

Action Taken:

City Manager David Cavazos stated the trial budget was drafted bearing the following three key points:

· The city had a structural deficit

· Public Safety was the City’s number one priority

· All departments must participate

Mr. Cavazos introduced Budget and Research Director Cathy Gleason. Ms. Gleason indicated unemployment, bankruptcy filings, foreclosures, decrease in single-family building permits, and a significant drop in single-family home sale prices had all been key economic indicators that had burdened sales tax revenue over the last three years. She explained the General Fund relies heavily on state-shared revenue and city sales tax which have continued to be lower than projected. Ms. Gleason explained the deficit of $241.4 million which the city would decrease through $92.2 million in financial initiatives and $10 million in innovation and efficiency savings, leaving $139.2 million in required cuts.

Mayor Gordon stated that the City Manager had requested that action to eliminate authorized but unfunded sworn Police and Fire positions in the General Fund and the Public Safety Funds be withdrawn.

Ms. Gleason stated expenditures by department for the 2009-10 General Fund Budget and the 2010-11 Proposed General Fund Budget represented City Council’s and the community’s priority for Public Safety. Ms. Gleason noted if the City were to hold Public Safety exempt from reductions, the City would have to do the following to balance the budget:

· Eliminate eighteen and a half departments to fulfill the proposed General Fund cuts of $139.2 million

· Reduce three more departments to address the Police and Fire Specialty Funds shortfall of $48.2 million

· Cut another department and a half to deal with the financial transactions of $92.2 million

Ms. Gleason indicated the only departments left to provide service would be Police, Fire, Municipal Court, Prosecutor, and Public Defender offices, and half of Parks and Recreation.

Mayor Gordon clarified that if Public Safety was exempt from reductions, no other service, outside of Public Safety, would be provided. Ms. Gleason responded this was correct.

Mayor Gordon asked what proportion of the General Fund budget was Public Safety. Ms. Gleason estimated 70 percent.

Councilman DiCiccio indicated he would like Police and Fire protected and asked staff to look at other functions to create efficiencies and savings. Ms. Gleason noted that the Trial Budget assumes $10 million in efficiency savings to be identified over the next fiscal year.

Councilman Johnson expressed his interest for in-sourcing.

Ms. Gleason explained changes in the number of General Fund Positions over the last twenty years, noting most departments had decreased the number of employees with the exception of Public Safety.

Ms. Gleason stated five senior centers, six libraries, and over twenty Parks and Recreation facilities are recommended for closure as part of the budget reductions. She added other reduction examples include park maintenance, street landscaping maintenance, street and traffic signal maintenance, neighborhood inspectors, economic development, and transit neighborhood circulators/DASH routes.

Ms. Gleason noted full-time and part-time proposed position reductions totaled 1,379. Ms. Gleason indicated both civilian and sworn executive/middle managers had the highest percentage of position reductions over the past three years, followed by supervisory and professional, and field and office.

Ms. Gleason noted the recommended budget cut for filled Police sworn positions was 353 with 2,872 filled sworn positions remaining; for Fire, the recommended budget cut was 144 filled sworn positions leaving 1,583 filled sworn positions. She added even after the proposed reductions, Police and Fire would still have 280 or 7 percent more filled, sworn positions than they did in January 2004.

Councilwoman Williams asked if there were other potential savings other than positions. Mr. Cavazos replied departments had already made cuts totaling $37 million in savings. Ms. Gleason added citywide items had also been reduced such as fuel, office furniture, and food.

Ms. Gleason noted the proposed consolidations would merge the Office Systems Division of the City Clerk Department into the Information Technology Department, resulting in savings of $145,000 to the General Fund and reduce 2.0 full-time positions. She added the Engineering and Architectural Department would consolidate and become a division of the Public Works Department, resulting in total savings of $628,000, with $54,000 of that in General Fund savings and reducing 5.0 full-time positions.

Ms. Gleason stated the budget tabloid would be available electronically later this week at phoenix.gov and hard copies would be available at libraries, senior centers, and community centers before the first budget hearing meeting. She reminded Council of the following key dates and events:

· February 10 – 24; fifteen community budget hearings

· March 2; Council action on the budget;

· April 5; Program and service reductions

Ms. Gleason requested action for the Council to approve the proposed reduced severance formula and retirement incentive formula.

Mayor Gordon asked if the retirement incentive was only for voluntary retirement. Ms. Gleason replied that was correct and assured the Council that the incentive was only available to employees who are retirement eligible and whose retirement prevents a layoff.

Vice Mayor Nowakowski motioned to approve to reduce the retirement incentive formula by 40 percent, with a cap at $3 million and reduce the severance formula by 20 percent for those laid off at an estimated cost of $2 million. Councilman Simplot seconded the motion.

Councilman Johnson stated he was in support of the retirement incentive formula reduction but did not agree with the severance formula reduction and asked to substitute the previous motion. He then offered a substitute motion to vote on the items separately. Councilman DiCiccio seconded the motion, which passed 9:0.

Vice Mayor Nowakowski motioned approval to reduce the retirement incentive formula by 40 percent and be capped at $3 million. Councilman Simplot seconded the motion, which passed 9:0.

Councilmen Simplot and Mattox asked if the severance formula reduction would include a cap. Ms. Gleason replied no. She added the $2 million number was an estimate, however, she explained the Human Resources Department would not know the exact number of layoffs until March 19, 2010.

Councilman DiCiccio asked staff if they could wait until March 19, 2010 before making the decision to reduce the severance formula. Mr. Cavazos explained waiting until March 19, 2010 would make it difficult to discuss options with impacted employees.

Councilwoman Williams questioned how the $2 million figure was arrived at. Ms. Gleason stated the $2 million was the best estimate she could provide but that it could be more or less depending on layoffs and bumps.

Mayor Gordon asked if staff could come back to Council if it was determined that severances could exceed the $2 million estimate. Mr. Cavazos assured the Council that staff would come back with further information.

Councilman Mattox asked that support options such as workforce development assistance for laid-off employees be brought back as an item for public discussion.

Councilman Simplot asked what would have happened if severance formula reduction had been approved and the estimate of $2 million was not enough or too much. Mr. Zuercher stated the City would treat everyone equally during involuntary separation.

Councilwoman Neely agreed this information was important to be able to discuss with employees.

Councilman Simplot expressed his concern over supporting this motion.

Mr. Zuercher indicated staff would have a better estimate for the Council before March 2, 2010.

Councilman Johnson motioned approval to retain the current severance formula. Mayor Gordon seconded the motion, which passed 9:0.

ESTIMATED

5. 3:00 P.M.-

NEIGHBORHOOD BLOCK WATCH GRANT FUND PROGRAM

Staff: Zuercher, Gleason
(Presentation 10 min.)

This report provides information on the Neighborhood Protection Sales Tax (Proposition 301) adopted in 1993 to add 0.1 percent sales tax for public safety. Currently, 5 percent of the sales tax is dedicated to a block watch grant program.

This item is for City Council information, discussion, and direction on possible use of Neighborhood Block Watch Grant Program funds to further support public safety programs, given the City’s current economic condition and trial budget inclusion of sworn layoffs.

Action Taken:

Mayor Gordon withdrew this item indefinitely.

Councilman Mattox left the meeting at 3:29 p.m.

Backup included in Council packet/City Clerk's Office.

ESTIMATED

6. 3:10 P.M.-

STATE LEGISLATIVE UPDATE

Staff: Cavazos, Peters
(Presentation 10 min.)

This report seeks approval, guidance, and direction from the Mayor and Council on state legislation of interest to the City.

This item is for information, discussion, and possible actions.

Action Taken:

Vice Mayor Nowakowski and Councilman DiCiccio left the meeting at 3:30 p.m.

Councilman Mattox returned to the meeting at 3:31 p.m.

Government Relations Director Karen Peters provided an overview of bills that had or could impact revenues for the City as the State Legislature worked to balance its budget. Ms. Peters indicated threats to State Shared Revenue still existed as the State deficit was $1.5 billion for the current year and $3.5 billion for the following year. She added fund sweeps, which have impacted the City to date, included HURF, capital improvements for 911 services, and Lottery revenues dedicated to transit. Ms. Peters presented State Legislation that held financial impact for the City. She stated some of the tax exemption bills impinged on the City’s authority to collect taxes but the financial impacts to General Fund revenues were unknown.

Councilman Simplot left the meeting at 3:34 p.m.

Vice Mayor Nowakowski returned to the meeting at 3:34 p.m.

Mayor Gordon asked if the impact of these unfunded mandates was known. Ms. Peters replied not yet.

Councilman Simplot returned to the meeting at 3:40 p.m.

Mayor Gordon asked about the impact to the City. Ms. Peters stated if the State repealed City income tax, the City would lose an estimated 18 percent in General Fund revenue.

Councilwoman Neely left the meeting at 3:46 p.m.

Councilman DiCiccio returned to the meeting at 3:47 p.m.

Ms. Peters also mentioned the State had considered moving State services out of the General Fund and increasing agency fees for such things as child care licenses which would impact the City’s Head Start programs. Ms. Peters added the State was looking at an impasse on water fees, as well.

Councilwoman Neely returned to the meeting at 3:50 p.m.

Ms. Peters stated House Bill 2250: Arizona’s Job Recovery Act had been passed by the House last week containing significant impact to the City as follows:

· Income Tax Shared Revenue Loss: $12 million to $18 million

· Primary Property Tax Loss: $6 million

· Secondary Property Tax Loss: $20 million annually

· Lost Bond Capacity: $220 million

During the legislative update item, the Policy meeting was recessed. Minutes of the Special Meeting will be provided by the City Clerk’s Office.

Vice Mayor Nowakowski motioned to recess the meeting. Councilman Simplot seconded the motion, which passed 9:0.

Mayor Gordon recessed the meeting at 3:44 p.m.

ESTIMATED

4:00 P.M.- ADJOURNMENT

Action Taken:

Due to time constraints, the Mayor and Council did not reconvene the Policy meeting following the special meeting. The Mayor asked that the remaining legislative update presentation be tabled until the next meeting.

For further information, please call the Management Intern, City Manager's Office, at 602-262-4449.

For reasonable accommodations, call the Management Intern at Voice/602-262-4449 or TTY/602-534-5500 as early as possible to coordinate needed arrangements.

Si necesita traducción en español, por favor llame a la oficina del gerente de la Ciudad de Phoenix, 602-262-4449 tres días antes de la fecha de la junta.

PHOENIX CITY COUNCIL MEMBERS

Councilman DiCiccio

Councilman Gates

Councilman Johnson

Councilman Mattox

Councilwoman Neely

Councilman Simplot

Councilwoman Williams

Vice Mayor Nowakowski

Mayor Gordon

CITIZEN REQUESTS/COMMENTS

CITY COUNCIL FORMAL SESSION

February 3, 2010

Mr. Luis Schmidt

Mr. Schmidt submitted a comment card but did not speak.

FOLLOW-UP: None

Jim Tierney

Mr. Tierney, Vice President of the American Federation of State, County and Municipal Employees (AFSCME) Local #2384, stated he was against the outsourcing of City functions. Mr. Tierney commented on two instances of City outsourcing that led to increased costs due to inferior work by private companies. He also provided examples of City mechanics who provided outstanding customer service, including one who rebuilt many fire truck engines.

FOLLOW-UP: None

CITY COUNCIL REPORT
GENERAL INFORMATION
TO:	Ruth Osuna Deputy City Manager	PACKET DATE:	February 4, 2010
FROM:	Lionel D. Lyons, Director Equal Opportunity Department
SUBJECT:	2008-09 FEDERAL DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM RESULTS

This report is to inform the Mayor and City Council of the results of the City’s Disadvantaged Business Enterprise (DBE) Program for the 2008-09 federal fiscal year from October 1, 2008 to September 30, 2009. Information is provided regarding the utilization of qualified DBE firms on U.S. Department of Transportation (USDOT) assisted contracts awarded or active during 2008-09.

The report also provides information on the Airport Concession Disadvantaged Business Enterprise (ACDBE) Program specific to participation of disadvantaged firms in car rental, retail, food and beverage, and miscellaneous concessions at Sky Harbor International Airport (SHIA).

THE ISSUE

Since 1980, the City has administered a Disadvantaged Business Enterprise (DBE) program as a condition of receiving federal transportation funding from the Federal Aviation Administration (FAA), Federal Transit Administration (FTA), and Federal Highway Administration (FHWA). Significant changes have occurred in the program in recent years based on changes in the governing regulations and decisions handed down by the Ninth Circuit Court of Appeals and the Federal Court of Appeals in cases that challenged the DBE program.

OTHER INFORMATION

The City continues to administer a race- and gender-conscious DBE goals program. The City was required to suspend setting goals for projects in the ACDBE Program in 2007 until a disparity study specific to airport concessions is completed in 2010.

The Equal Opportunity Department (EOD) continues to act on behalf of the City Manager to provide oversight of the City’s DBE and ACDBE programs, and works closely with the Aviation, Public Transit, and Street Transportation Departments to ensure the City’s DBE and ACDBE programs remain compliant with all federal requirements.

Each year, the City is required to gather and report on its DBE and ACDBE programs to the FAA, FTA, FHWA, and USDOT. The annual DBE Report includes information on proposed DBE participation for new contracts awarded and actual DBE participation on projects that have been completed and closed. The ACDBE Report includes information on the gross earnings of DBEs and non-DBEs in all concession operations.

Awarded Contracts – As shown in Table A below, 17 contracts were awarded valued at $12.1 million. The federally-funded portion of the contracts was $9.5 million, or 78 percent, of the total. DBE firms received $545,483, or 5.8 percent, of total federal dollars awarded during the year. Eight (8) of the contracts contained DBE utilization goals. The remaining nine (9) contracts were highly specialized and required design services or procurements in areas where no DBE vendors or suppliers were available.

There was a significant decrease in 2008-09 in the number and value of federally assisted contracts from 2007-08. That year, 22 contracts valued at $39 million were awarded due in part to the Light Rail project. In 2008-09, no Light Rail contracts were awarded, whereas contracts valued at $22 million were awarded in 2007-08.

While the DBE Program is a federal program that does not restrict participation to local firms, it is significant to note that 15 of the 16 DBE firms proposed to participate in 2008-09 contracts awarded by the City were Maricopa County firms.

Closed Contracts – Between October 1, 2008 and September 30, 2009, a total of 24 projects containing federal transportation funding were completed and closed. Total dollars paid out by the City on the closed projects was $102.7 million. DBE participation on the projects was $14.9 million, or 14.6 percent, of total contract costs.

Two (2) DBE firms served as prime contractors on projects totaling $3.5 million. The remaining $11.4 million was earned by DBEs in the performance of 19 subcontracts. Seven (7) of the contracts, totaling $5.8 million, contained no DBE utilization goals due to little to no DBE availability to perform the scopes of work covered under the contracts. Table B below provides additional details of actual DBE participation on all closed projects.

Compliance Monitoring – During 2008-09, a total of 90 federally assisted contracts, with 360 DBE subcontracts, were monitored for DBE Program compliance. Monitoring activities included mandatory visits to job sites, reviews of all payments to prime contractors and DBE subcontractors, dispute resolution between primes and DBEs, determinations on the good-faith efforts made by prime contractors, and collection and reporting of compliance data to the funding agencies. FTA-assisted transit contracts, including the Light Rail project, accounted for more than two-thirds of the open and active projects. Table C provides additional information by funding source on contracts monitored during the year.

Airport Concession DBE Program Results – In 2007, based on guidance from the FAA and USDOT, the City transitioned its ACDBE program from a race-and gender-conscious to a race- and gender-neutral program. The ACDBE disparity study commissioned by the Aviation Department is expected to be completed in 2010. At that time, EOD will work with the Aviation and Law Departments to address the study findings.

In 2008-09, concession revenues for existing contracts totaled $473.8 million. This is a 13 percent decrease compared to $543.0 million in gross concession receipts earned in 2007-08. Ten (10) car rental firms operating at the airport generated $306.8 million, or 65 percent, of the total concession receipts. There was no ACDBE participation in car rental concessions as no DBE firms are certified in this area.

During 2008-09, total gross revenues for non-car rental concessions, including food and beverage, retail, and miscellaneous concessions, were $166.9 million. At Sky Harbor International Airport, there were 154 direct food and beverage, retail, and miscellaneous concessions under 53 concession contracts. ACDBE firms participated in 13 direct contracts, 13 subleases, and 23 joint-venture arrangements with larger concessionaires. During the reporting period, ACDBE firms earned revenues totaling $46.5 million, or 27.9 percent, of the $166.9 million in total non-car rental concession revenues.

Two airport concessionaires graduated from the program after exceeding the $750,000 personal net worth standard established by USDOT. A third concessionaire chose not to renew its certification. These firms will continue to operate their concessions until their contracts expire; however, revenues from these concessions are not included in Table D.

CONCLUSION

The City continues to administer DBE and ACDBE programs that are compliant with federal regulatory requirements. During 2008-09, the FTA conducted an audit of the City DBE Program. Program policies, procedures, and administration were found to be in overall compliance. Although minor procedural issues were identified, the Regional Civil Rights Officer for Region 9 of the FTA complimented the Public Transit and Equal Opportunity Departments on maintaining an exemplary program, stating that the City’s program “sets an excellent example for other recipients in the Region.”

While the City has been able to maintain its current DBE program as a result of evidence to support continuation of race- and gender-based measures provided in the 2005 Minority, Woman, and Small Business Enterprise (M/W/SBE) Disparity Study, that evidence will be five years old and deemed outdated by the end of 2010. Staff is researching options to address the need for current evidentiary data and will report on the issue to the Mayor and City Council at a later date.

RECOMMENDATION

This report is for information only. No Council action is required.

DISADVANTAGED BUSINESS ENTERPRISE PROGRAM RESULTS

FEDERAL FISCAL YEAR 2008-09

TABLE A: AWARDED CONTRACTS

Proposed DBE Participation By Funding Source Federal Fiscal Year 2008-09
Funding Source	Total Contracts Awarded	Total Contract Value	Federal Portion of Contract Dollars$	DBE Prime Contracts Awarded	DBE Prime Contract Dollars	DBE Sub-contracts Awarded	DBE Subcontract Dollars	DBE % of Federal Funding
FHWA	3	$1,079,489	$1,017,959	0	0	3	$137,776	13.5%
FTA	10	$2,058,447	$1,721,118	1	$9,177	9	$135,875	8.4%
Lt Rail	0	0	0	0	0	0	0	0
FAA	4	$9,035,894	$6,776,920	0	0	3	$271,832	4.0%
TOTAL	17	$12,173,830	$9,515,997	1	$9,177	15	$545,483	5.8%

TABLE B: CLOSED CONTRACTS

Actual DBE Participation

Projects Closed

Federal Fiscal Year 2008-09

Funding Source

Total Payments to

Primes

Required DBE Participation

Actual

DBE Participation

Percent of

DBE Participation

FHWA

$8,769,514

$772,777

$961,716

11.0%

FTA

$15,228,934

$903,164

$1,345,366

8.8%

Lt. Rail

$63,649,222

$7,319,660

$7,776,592

12.2%

FAA

$15,100,883

$908,299

$4,875,358

32.2%*

TOTAL

$102,748,553

$9,903,900

$14,959,032

14.6%

* Includes two DBE prime contracts

DISADVANTAGED BUSINESS ENTERPRISE PROGRAM RESULTS

FEDERAL FISCAL YEAR 2008-09

TABLE C: COMPLIANCE MONITORING

DBE PROGRAM COMPLIANCE MONITORING

Federal Fiscal Year 2008-09

Funding Source

Prime

Contracts

DBE

Subcontracts

FAA

FHWA

FTA

Lt. Rail

187

TOTALS

360

TABLE D: AIRPORT CONCESSION PROGRAM

ACDBE PARTICIPATION

BY CONCESSION TYPE

Federal Fiscal Year 2008-09

Concession Type

Total Sales

ACDBE Sales

ACDBE % of Total

Food & Beverage

$102,128,213

$20,040,290

19.6%

Retail

56,214,465

25,477,007

45.3%

Miscellaneous

8,588,669

1,028,132

12.0%

TOTALS

$166,931,347

$46,545,429

27.9%

CITY COUNCIL REPORT
GENERAL INFORMATION
TO:	Jerome E. Miller Interim Deputy City Manager	PACKET DATE:	February 4, 2010
FROM:	Cynthia Seelhammer Interim Water Services Director
SUBJECT:	WATER SERVICES DEPARTMENT RECENT STORM EVENT UPDATE

This report provides City Council with an overview of the Water Services Department’s actions and efforts to maintain water quality standards during and after the storm occurring the week of January 19, 2010.

THE ISSUE

The Water Services Department (WSD) continues to improve water system reliability following the turbidity incident at the Val Vista Water Treatment Plant (WTP) in January 2005. During this event, the Val Vista WTP was unable to meet water quality compliance. Since then, improvements in maintenance and operations have enhanced the WSD’s ability to produce high quality water that meets or exceeds all regulatory standards. Additionally, the department’s Emergency Response Plan was updated, and its internal and external communication protocol was strengthened. These improvements enhanced the department’s ability to produce water and meet system demands, even during poor source water conditions. As a result, during the most recent major storm, WSD has been able to achieve and maintain water quality standards and produce sufficient potable water and meet system demands.

OTHER INFORMATION

Prior to the major storm event the City was expecting the week of January 19, WSD staff was well prepared and quickly mobilized to ensure water quality standards were maintained. While the many preparations and special actions were largely invisible to the public, WSD staff went to extraordinary measures prior to and during the storm, including the following actions:

· The amount of water treated and stored was increased during the 24 hours before the storm. This included increasing the normal amount of water in existing reservoirs and preparing additional reservoirs to ensure an adequate water supply was available if turbidity issues should overwhelm any facility. Forty million gallons of treated water were added to the 200 million gallons of treated water held in reserve, enough for more than one day’s use.

· Electrical staff removed the raw water pump station motors in anticipation of the Verde River flooding. Pumps were reinstalled after the storm water receded.

· Arrangements were made with Salt River Project (SRP) to return the Arizona Canal into service during the storm to ensure the 24^th Street Water Treatment Plant could be brought on line to produce drinking water. SRP had closed the canal for refurbishment, but made special arrangements with Phoenix due to the storm.

· Plans were made for Central Arizona Project (CAP) water to be provided to the Val Vista Water Treatment Plant to allow for dilution of surface water supplies with extreme turbidity.

· Additional chemicals were ordered and on hand to meet treatment needs.

· Staff leave was cancelled, as necessary, to make sure adequate personnel would be on hand and on standby.

· Staff members who maintain and repair lift stations checked the pumps prior to storm’s arrival. Staff also prepared and deployed pumping equipment at various sites throughout the City in the event bypass pumping would be required. The City has 27 lift stations which have the pumping capacity of 5.7 billion gallons annually.

· To ensure storm water would not overwhelm the wastewater treatment facilities, staff was deployed to monitor flow levels in the sewer collection system at strategic locations throughout the City. Peak flows at the treatment plants were closely monitored.

The turbidity of the source surface water during this storm reached levels many times worse than the event in 2005. The allowable standard in drinking water in the US is less than 1 Nephelometric Turbidity Unit (NTU). When the problems with the water supply occurred in Phoenix five years ago, the Val Vista Water Treatment plant was dealing with river water with NTU of approximately 180. During the January 2010 storm, the NTU level reached nearly 5,000. However, due to the protocols and changes now in place, and with adequate planning and supervision, staff was able to process and treat the water without incident. Staff performed extremely well prior to and during this storm event, demonstrating that the lessons learned five years ago were effectively used to mitigate the possible negative effects associated with high turbidity levels.

RECOMMENDATION

This report is for information only. No Council action is required.

Official Web Site of the City of Phoenix

Phoenix - All America City - 2009

1 In State Producer

7 On sale-beer & wine

11 Hotel/Motel-all liquor on premises

3 Microbrewery

4 Wholesaler

5 Government

6 On sale-all liquor

CITY COUNCIL REPORT
WORK STUDY SESSION AGENDA
TO:	Ed Zuercher Assistant City Manager	AGENDA DATE:		February 9, 2010
FROM:	Cathleen Gleason Budget and Research Director	ITEM:	2
SUBJECT:	PLAN FOR ALLOCATING FOOD TAX REVENUE