Official Web Site of the City of Phoenix

TABLE OF CONTENTS

FOR CITY COUNCIL PACKET

DECEMBER 8, 2009

The December 9, 2009 Formal Meeting has been Cancelled

 

POLICY SESSION AGENDA

1.	Council Information and Follow-up Requests/Consent Agenda/Call for an Executive Session//Reports and Budget Updates by the City Manager
2.	Employee Service Recognition Announcements (NO REPORT)
3.	City Council Recognition of Pearl Harbor Survivors
4.	ASU Walter Cronkite School of Journalism – National Award
5.	Presentation on Westmarc
6.	a.  2010 Federal Legislative Agenda b.  2010 State Legislative Agenda
7.	Development Services Ad Hoc Task Force Report

 

 

Packet Date:  December 4, 2009

 

CITY COUNCIL REPORT
POLICY AGENDA
TO:	David Cavazos City Manager	AGENDA DATE:		December 8, 2009
FROM:	Ryan Burke Mayor's Office	ITEM:	3
SUBJECT:	CITY COUNCIL RECOGNITION OF PEARL HARBOR SURVIVORS

 

The purpose of this report is to provide recognition to World War II (WWII) veterans for their sacrifices to our country.

 

THE ISSUE

 

The Military Veterans’ Commission, with the Mayor and City Council, recognize two survivors of the December 7, 1941 attack on Pearl Harbor.  Our two honorees are Mr. Lambert Modder, who was a 19-year-old Navy Hospital corpsman at Pearl Harbor and Mr. Gilbert Bartell, who served aboard the USS Tennessee stationed at Pearl Harbor at the age of 22.

 

Unlike many tributes, this recognition focuses solely on our surviving WWII veterans.  By honoring these individuals, we highlight their great sacrifice and make an effort to increase the public’s appreciation of the WWII generation.  Time remains a factor.  The U.S. Department of Veterans Affairs estimates that approximately 1,200 WWII veterans are lost daily.  As of November 2009, less than 10 percent of the 16 million men and women who served in our armed forces during WWI are still alive.

 

CONCLUSION

 

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

 

 

ASU WALTER CRONKITE SCHOOL OF JOURNALISM - NATIONAL AWARD
POLICY AGENDA
TO:	Ed Zuercher Assistant City Manager	AGENDA DATE:		December 8, 2009
FROM:	Tauny Woo, P.E., LEED AP Acting City Engineer	ITEM:	4
SUBJECT:	ASU WALTER CRONKITE SCHOOL OF JOURNALISM - NATIONAL AWARD

 

This report details several national awards recently received by the Arizona State University Walter Cronkite School of Journalism project.

 

THE ISSUE

 

On November 6, 2009, the Design-Build Institute of America (DBIA) announced that the ASU Walter Cronkite School of Journalism was the winner of a National Design-Build Award in the category of Public Sector Building Projects Over $25 Million.  The award honors the project that best exemplifies the design–build principles of interdisciplinary teamwork, innovation, and problem solving.  The ASU Walter Cronkite School of Journalism project was selected over several other notable projects, including the Student Union Building at California State University, the Rappahannock Regional Jail Expansion and Renovation in Virginia, and the Gwinnett Atlanta Braves Stadium in Georgia.

 

The design and build team of Sundt Construction, HDR Architecture, and Steven Ehrlich Architects did an outstanding job partnering with the City and ASU. 

 

In addition, Acting City Engineer Tauny Woo and Street Transportation Director Wylie Bearup were each presented with the Distinguished Leadership Award for their commitment, active participation, and involvement in the design-build industry.

 

OTHER INFORMATION

 

The ASU Walter Cronkite School of Journalism achieved Leadership in Energy and Environmental Design (LEED) Certification at the Silver Level.  The plaque, awarded by Rick Fedrizzi, President, CEO and Founding Chairman of the US Green Building Council, was presented to Mayor Phil Gordon and ASU President Dr. Michael Crow during the National GreenBuild Conference held in Phoenix this November.  There are four levels of LEED Certification for new construction: Certified, Silver, Gold, and Platinum.  LEED Certification demonstrates the building’s achievement of an environmentally “green” sustainable design.

 

RECOMMENDATION

 

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

 

 

CITY COUNCIL REPORT
POLICY AGENDA
TO:	David Cavazos City Manager	AGENDA DATE:		December 8, 2009
FROM:	Karen Peters Government Relations Director	ITEM:	5
SUBJECT:	PRESENTATION ON WESTMARC

 

This report provides information to the Mayor and City Council regarding WESTMARC.  No action is requested.

 

THE ISSUE

 

Jack Lunsford, WESTMARC’s President and CEO, will provide an update on the current activities and goals in 2010 for his organization.

 

WESTMARC was founded in 1990 to act as a unified voice and focal point for Western Maricopa County in matters of public policy, such as:  transportation, economic development, education, healthcare, tourism, human resources, water rights, and issues concerning Luke Air Force Base.

 

It is a broad-based coalition of the 15 communities in Western Maricopa County representing 35 percent of the population of the county.  WESTMARC is primarily funded by its business and industry members.  Other members include government, education, human services, arts and cultural organizations, chambers of commerce, and community leaders.  (Attachments A through H are available for public review at the City Clerk’s Office, 200 W. Washington, 15^th floor.)

 

RECOMMENDATION

 

This report is for informational purposes only.  No Council action is requested.

 

 

CITY COUNCIL REPORT
POLICY AGENDA
TO:	David Cavazos City Manager	AGENDA DATE:		December 8, 2009
FROM:	Karen Peters Government Relations Director	ITEM:	6a
SUBJECT:	2010 FEDERAL LEGISLATIVE AGENDA

 

This report describes the proposed federal legislative agenda of the City for the second session of the 111^th Congress.  Once input is received from the Mayor and Council, the agenda will define the City’s federal legislative priorities and guide the City’s lobbying activities at the federal level.

 

BACKGROUND AND GUIDING PRINCIPLES

 

The City has many critical relationships with the federal government.  It regulates most aspects of City operations and has significant control of some services.  The City must continuously work to understand, comply with, and provide input to federal laws and regulations that impact our operations. 

 

The federal government also provides significant funding for the City.  Some of these funds pay for critical operating programs such as Head Start, police officers and emergency preparedness.  Other funds pay for important capital improvements like airports, transportation and Rio Salado.  Some funds are distributed by formula and others are competitive grants.  In return for the funds, we become responsible for compliance with complex grant requirements.  Although some of our work is with Congress, most activity is with the federal agencies that handle regulations and funding.  It is vital that we effectively participate in the process for developing both the funding and the associated rules.

 

Arizona’s Congressional delegation works closely with us in the funding and rules process.  We value our relationships with them and the support we receive from them.  One of the primary proposed goals of the City’s federal agenda is to maintain and enhance these relationships, as well as the City’s relationships with the Executive branch.  As staff works to implement the approved federal agenda, we will brief the Mayor and Council throughout the session and seek direction regarding important bills, amendments, and developments in the agencies; however, in order to prioritize and guide staff’s efforts, we recommend that the Mayor and Council endorse two guiding principles as our highest priorities – maintaining and enhancing fiscal sustainability and protecting local authority. To promote fiscal sustainability the City would, for example, support efforts to achieve parity in federal funding for the City with other cities of equivalent population.  Staff would also oppose federal actions imposing unfunded mandates upon cities, or reducing funding available for important programs or infrastructure needs.  Additionally, the City must work to ensure reimbursement for municipal expenses for federal task forces or other cooperative activities.  To protect local authority, staff would support federal action that empowers local communities and oppose efforts to preempt local decisions.

 

FAIR SHARE FOR PHOENIX

 

The City of Phoenix does not receive its “fair share” of federal funding.  Although Phoenix is the fifth largest city in the nation, we continue to lag millions of dollars behind smaller communities in federal funding that helps the poorest families and revitalizes blighted neighborhoods.  The funding disparity is primarily driven by formulas that were developed more than 30 years ago and built on dated population counts and past allocations to cities, both factors favor the nation’s oldest cities.  Examples include Head Start, Low-Income Home Energy Assistance Program (LIHEAP), Community Development Block Grant (CDBG), and the Section 8 Housing Choice Voucher Program.  Staff continues to refine the City strategy in attaining our fair share of these funds.

 

In the past three years, the City has had some success in obtaining more federal funding from programs with formulas that are disadvantageous to Phoenix.  Our success was due to the Congressional delegation taking advantage of special funding opportunities and pressing federal agencies to give Phoenix stronger consideration in distributing emergency funding.  More work needs to be done to ensure that formula adjustments are made to reflect the City's population growth and central city status.

 

AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA)

 

The American Recovery and Reinvestment Act of 2009 (ARRA) was passed by Congress and signed by President Obama on February 17, 2009.  The purpose of ARRA is to create and save jobs, stimulate our economy, and build the foundation for long-term economic growth.  Since February, a citywide ARRA Task Force has reviewed ARRA, prioritized funding requests and coordinated implementation of projects using ARRA funding.  City departments have obtained Mayor and Council approval for projects that use formula funding as well as for pursuing competitive grant opportunities.  The City’s goal is to obtain maximum benefits from the ARRA for the residents of Phoenix and use the funds to put as many people to work as possible, as quickly as possible.

 

To date, Phoenix has been notified that it will receive approximately $309 million in funding through ARRA.  Approximately $6 million has been spent.  Several million in grants are still pending agency award decisions.  The City secured significant funding through the first phase of ARRA formula grants.  Staff recommends continuing to aggressively seek every funding opportunity available through ARRA.  Additionally, staff will continue to prepare for any additional ARRA resources that may become available.

 

NATIONAL ORGANIZATIONS

 

The National League of Cities (NLC) and the U.S. Conference of Mayors (USCM) are important forces on the Washington scene that play a significant role with the Administration and Congress.  Mayor Gordon and several members of the Council hold committee positions in these organizations and their participation makes a difference in Phoenix’s efforts to get a fair share of federal funding.  Government Relations and our Washington lobbyists also work with these organizations to deliver our message to Congress.  Staff appreciates the important work that the Mayor and City Council do with these national organizations to ensure that our City is heard as their platforms develop.

 

UNFINISHED BUDGET BUSINESS

 

This month, the Senate unanimously approved the $133.9 billion Military Construction/Veterans Affairs (VA) spending bill after agreeing to more than 20 amendments.  The bill includes $76.7 billion in discretionary spending and $1.4 billion in overseas contingency funding.  This is the ninth of 12 annual appropriations bills approved by the Senate.  The House has approved all twelve appropriations bills.  The President has signed five appropriations bills into law: Agriculture, Energy and Water Development, Homeland Security, Interior and Environment and Legislative Branch.

 

Seven bills now await conference action and Presidential approval: Commerce/Justice/Science (CJS); Defense, Financial Services; Labor/Housing and Human Services (HHS), Education; State and Foreign Operations; and Transportation-HUD (THUD).  The Defense conference bill is not expected to be considered until the week of December 14; consideration of the CJS and THUD conference bills has not yet been scheduled. 

 

Lawmakers hoped to complete a conference report for the CJS spending bill by now, but have not reached final agreement.  The House has yet to name conferees for the bill – usually the signal that an agreement has been reached – due to the possibility that Republicans would force Democrats to take a difficult vote on instructing conferees to include a provision prohibiting transfer or release of prisoners held at Guantanamo Bay, even for the purpose of prosecuting them in the U.S.

 

With the current Continuing Resolution set to expire on December 18 and only five appropriations bills signed into law, an omnibus measure combining some appropriations bills into a single bill is expected.  The Labor/Housing and Human Services (HHS), State Foreign Operations or Financial Services appropriations bills are unlikely to reach the Senate floor as individual bills.  The Defense or THUD appropriations bills appear to be the most likely vehicles for an omnibus measure.  There also is a possibility that both appropriations bills could be used to carry other legislation—Defense could carry Military Construction/VA, State Foreign Operations and a possible Afghanistan supplemental, while THUD could carry other domestic priorities.

 

PROPOSED AGENDA FOR CALENDAR YEAR 2010/FEDERAL FISCAL YEAR 2011

 

In addition to the principles and priorities described above, staff recommends that the City include a number of specific issues in its agenda for federal Fiscal Year (FY) 2011.  These issues have been identified by staff as well as the Mayor and Council to respond to specific community needs.

 

I.  Transportation

 

Aviation:

The Federal Aviation Act expired in September 2007 and a reauthorization bill has yet to be completed.  Staff recommends that the City work to include the following priorities in reauthorization legislation:

• Adjust the Passenger Facility Charge (PFC) to $6.00 and allow it to be indexed against future inflation or material costs.
• Allow the use of PFCs to satisfy potential liability with the Federal Aviation Administration (FAA) by purchasing land for noise abatement purposes.
• Allow airports to work with their local public safety community to establish appropriate levels of Aircraft Rescue and Firefighting (ARFF) service and equipment.  This local control will maximize resources at General Aviation airports.
• Require the FAA and the General Accounting Office to study One Engine Inoperative (OEI) surfaces and the impact to air commerce.
• Maintain noise mitigation funding, allow airports to invest proceeds for airport operation, and request $22 million from the FAA Airport Improvement Program (AIP) to continue the grant-funded project already underway.

 

Staff also recommends pursuing the following priorities related to the Transportation Security Administration and Customs and Border Protection:

·        Support increased funding and reimbursement for Inline Explosive Detection equipment projects underway and in the future.

·        Maintain or enhance staff available to screen passengers through checkpoints and maintain a 10-minute standard.

·        Maintain current standards for screening of all individuals as they pass through security checkpoints.

·        Maintain focus on commercial, scheduled air service; no unfunded mandates for General Aviation airports.

·        Provide increased staffing for Customs facilities and services commensurate with the Nation’s ninth busiest airport.  This item is critical for increasing international and business operations and supporting current international airline service.

 

Lastly, staff recommends the following items for inclusion in the City’s FY11 Appropriation Submission:

·        $3 million for Taxiway Alpha reconstruction to replace failing asphalt.  This taxiway is the last unimproved movement surface on the airfield and is not currently available for use by commercial aircraft or for use after dark because it is not illuminated.

 

Surface Transportation:

The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA–LU) authorized surface transportation and transit programs through September 30, 2009.  The bill currently has been extended until December 18.  Conflicting rumors continue about when a reauthorization bill will be brought forward – dates range from six-months to two years.

 

Congress has held conversations with the public and national organizations regarding reauthorization of this legislation.  Issues being discussed include:  Environmental Self-Certification, Bridge Maintenance, and Congestion Relief – the latter two require a new funding source.  The City may suggest additional member-sponsored transportation projects that can be appropriated within the SAFETEA-LU budget, but “above the line” so that they do not supplant budget allocations to Arizona for projects in the five-year Transportation Improvement Program.  Staff will work with the Arizona Department of Transportation (ADOT) to ensure closer communication regarding presentation of high priority projects to the Arizona congressional delegation.

 

City staff has participated in discussions with regional and national associations regarding themes that should be addressed in the next reauthorization bill.  Suggestions for the national transportation program include:

• Significantly increase federal transportation infrastructure investment.
• Place program emphasis on energy independence and sustainability.
• Support an urban focus that heightens the federal commitment to mass transit and other alternatives to highways and private autos.
• Dramatically streamline and simplify the federal aid process, with direct funding to large cities and Metropolitan Planning Organizations (MPOs).

 

Additionally, staff recommends that reauthorization legislation should include the ability to collect an Alternative Fuel Tax Credit which would mean $3-4 million per year for the City and more opportunities to use federal formula funds for Operations and Maintenance.  The Alternative Fuel Tax Credit program currently provides a $.50 credit per gallon of liquefied natural gas (LNG) fuel used for public transportation.  This credit helps offset some of the fuel costs incurred in the provision of public transportation.  Staff has also discussed advocating changes to the New Starts Program (funding source for light rail) that would make the federal requirements for a project proportional to the federal percentage of investment in the construction, reduce project review time and give weight to the project’s economic development benefits.

 

Transit:

The City, in conjunction with the Regional Public Transportation Authority (RPTA)/Valley Metro, will support funding for regional light rail, buses, bus facilities and park-and-ride facilities.  Staff recognizes federal budget constraints and the challenge of securing member-requested projects.  Valley Metro traditionally presents the actual need and requests the federal share for transit projects.  Valley Metro has not completed its compilation of FY 11 regional priorities from all members, but those priorities will be brought forward in the coming months.  Due to funding challenges in Transit 2000 and Proposition 400, Phoenix Public Transit has no new projects to submit for the next federal fiscal year.  In the coming year, staff will focus on implementing the current federal appropriations and ARRA funding that the City has received.

 

Light Rail:

In keeping with the City’s Full Funding Grant Agreement (FFGA) with the Federal Transit Administration (FTA), the FY 11 budget is expected to include the final installment of $61 million for the existing light rail line.  The FY 11 budget requests the following:

 

• $2 million to add to previous federal funding for completion of the Alternatives Analysis (AA) study on the Phoenix West Extension (formerly called I-10 West).
• $876,000 for the Tempe extension AA.
• $4,500,000 for the Glendale extension AA.

 

In FY 11, the region also proposes to seek Project Development funding for the Central Mesa extension ($8.5 million) and the Tempe South extension ($6.4 million).  Project Development for the Phoenix West and Glendale extensions are scheduled for a future year.

 

Streets:

The City’s Streets Department has identified large capital projects that would benefit from federal funding available through Transportation Reauthorization, grants or appropriations.  Staff recommends advocating to Congress for funding to:

 

• Design the 67th Avenue Salt River Crossing between Southern Avenue and Broadway Road – This project is a bridge crossing over the Salt River along 67th Avenue from Southern Avenue to Broadway Road, including roadway and intersection improvements.  The project provides a regionally significant roadway for the southwest area of Phoenix and another point of access across the Salt River in times of flooding.  This will increase traffic flow and help to eliminate traffic congestion on the existing parallel bridges.  The project reduces operation costs during flooding periods and supports continued development in an underserved area of the City that has experienced phenomenal growth over the last five years. Rapid growth is expected to continue in this area after economic recovery.
• Design and construct Avenida Rio Salado/Broadway Road (ARS) – This project is located between 67th Avenue to 7th Street.  The ARS project is an integral part of the planned regional transportation system, including connections to the planned State Route (SR) 801 freeway and the SR 202 Loop. ARS would also improve access to downtown and provide an east – west alternative to the Interstate 10 which demonstrates continued traffic congestion. Construction of a bridge across the Salt River between 67th Avenue and 51st Avenue also gives this project regional significance as river crossings are at a premium in this area. In addition, the segment from 51st Avenue to 7th Street would provide regional significance for the southwest area of Phoenix.  Currently the portion of 51st Avenue to 7th Street is partially funded with regional transportation funding.
• Design and construct bridge crossings for all major arterials in the northwest region of the Phoenix Metropolitan area.  This area is bounded by the Central Arizona Project (CAP) on the south, Carefree Highway on the north, city boundary on the west and 7th Avenue on the east.  There are many large drainage conveyances that require extensive bridge dry-crossings in the area.  These bridge crossings are regionally significant and would alleviate some congestion along the Black Canyon Freeway (Interstate 17) through this area.

 

II.  Public Safety and Homeland Security

 

Homeland Security:

Staff recommends a high priority for procuring resources through Department of Homeland Security (DHS) and U.S. Department of Justice (DOJ) programs.  Federal mandates regarding state and local emergency management continue to increase, while federal funding for hazard planning, training, and mitigation has been decreasing.  Staff recommends that the City support adequate funding for hazard mitigation and emergency response programs such as the Urban Areas Security Initiative (UASI), so that state and local governments can protect citizens when disaster occurs.

 

Technology to Combat Crime:

For FY2011, the Phoenix Police Department recommends seeking funding for the following projects:

·        $1,900,000 for a Two-Finger Rapid Subject Identification Program – This funding would be used for equipment to identify subjects via wireless two-finger rapid identification technology in patrol cars.  Fingerprints could be immediately searched against the Automated Fingerprint Identification System (AZAFIS), a database of approximately two million subjects who have had contact with law enforcement in Arizona.

• $1,500,000 for Enhanced Technology for the Collection and Preservation of Electronic Evidence – Some of this funding would be used for forensic laser scanning technology that documents crime scenes with detailed precision.  This technology expedites processing of complex crime scenes and renders more precise measurements from various reference points of evidentiary items at those scenes.  It enables investigators and crime scene technicians to virtually return to a controlled crime scene and easily extract measurements and viewpoint data that may be key to their investigation long after the crime scene has been released.  The remainder of the funding would be used for electronic evidence storage.  Current electronic storage systems maintained by the Police Department were acquired before the types of evidence processing and crime scene investigative techniques employed today.  As such, current storage systems are inadequate to manage the volume and the type of electronic evidence being collected in investigations today, such as high resolution crime scene photos, video surveillance as well as images and notes captured by the Crime Lab during evidence processing.  There is also no redundancy built into the current storage system, so when the there is a system failure or a maintenance issue, the electronic evidence is not available to be retrieved.

 

The City Prosecutor’s Office recommends seeking one appropriation:

• $3,230,612 for Domestic Violence Advocacy and Prosecution – This three-year pilot project would fund five Victim Advocate positions, two Assistant City Prosecutor positions, two Phoenix Police Department Detective positions and one Accountant position with the goal of providing immediate resources for victims and increasing victim involvement in prosecuting domestic violence cases.

 

Community Oriented Policing Services (COPS):

The Office of Community Oriented Policing Services (COPS) distributes funding through a wide range of programs that have directly benefited the Phoenix Police Department.  In the past seven years, nearly $9 million has been received through COPS Technology grants and discretionary funds to enhance and expand communication interoperability and upgrade other forms of technology.  In addition, over the past fifteen years nearly 700 police officer positions have been funded through COPS hiring grants to support the Department’s community policing efforts.

 

Staff recommends asking Congress to support continued funding for the COPS program and remove the matching fund/salary cap provision associated with the hiring grants.

 

Immigration Reform:

Staff recommends that the Mayor and Council support comprehensive immigration reform legislation that offers border control and security for Arizona.  We will continue to work closely with the Governor, the NLC and the USCM to provide input on immigration legislation that protects local law enforcement against mandatory immigration enforcement responsibility, but also provides adequate resources to combat the crime and strain on the justice system caused by our unsecured international border.  Mayor Gordon serves as Chair of the USCM’s Comprehensive Immigration Reform Task Force.

 

Victims of Crime Act (VOCA):

Staff recommends that the City seek federal funds to continue programs that offer supervised probation for first-time domestic violence offenses as well as programs to assist victims and support the Family Advocacy Center and our nonprofit community partners.

 

Fire:

The Phoenix Fire Department provides a wide array of prevention and emergency response services to the residents of Phoenix.  Firefighters provide life saving services to people affected by fire or medical emergencies.  Situations arising from hazardous materials are also mitigated by firefighters.  A cooperative agreement established with neighboring jurisdictions further strengthens response capabilities to the community.  To ensure cost effectiveness during tough economic times, Phoenix Fire has restructured programs to achieve a higher level of efficiency, but this has also forced a greater dependency on alternative funding which typically comes from state and federal agencies.

 

Staff recommends asking Congress to:

• Continue and reauthorize the FIRE ACT Grants – Assistance to Firefighters; Staffing for Adequate Fire and Emergency Response (SAFER); Fire Prevention and Safety; Fire Station Construction.
• Apply greater emphasis on directing funding priorities to large population centers.

 

Other Public Safety Issues:

The City will continue to advocate for public safety block grant programs with direct benefits to cities, programs that assist our drug enforcement efforts, and federal legislation that protects the public sector communication spectrum.

 

III.  Economic Development

 

Phoenix Bioscience Center, Medical School and Downtown Campus:

Over a number of years the City has worked with the Translational Genomics Research Institute (TGen) to support construction of its facility in downtown Phoenix, which is also the headquarters of the International Genomics Consortium.  Staff recommends that the City continue working with the University of Arizona (UA), Arizona State University (ASU) and other partners to encourage Congress to fund research at the Phoenix Bioscience Campus. 

 

New Market Tax Credits (NMTC):

The Phoenix NMTC program provides below market rate loans to encourage private sector investment in qualified low-income communities in Phoenix.  The U.S. Department of Treasury Community Development Financial Institutions Fund awarded the Phoenix Community Development and Investment Corporation (PCDIC) a $170 million allocation in 2003 and an additional allocation of $40 million in 2008.  While this program supports a range of economic development strategies, NMTC is particularly valuable to Phoenix’s efforts to implement neighborhood and downtown commercial revitalization.

 

Staff recommends asking Congress to reauthorize the New Market Tax Credit Program within the U.S. Department of Treasury.

 

Protection of Luke Air Force Base:

Luke Air Force Base was established in 1941 on land donated to the federal government by the City.  It has evolved in the decades since to become a major economic force in the Phoenix region.  The City partners with west valley cities and Maricopa County to protect and enhance Luke Air Force Base (AFB).  Our goals are to:

• Protect the mission of Luke AFB by ensuring property owner participation and cooperation in federally–funded acquisition of land, and

·        Advocate for follow-on and joint missions for Luke AFB.

 

Workforce Investment Act:

Reauthorization of the Workforce Investment Act (WIA) is five years overdue and will likely be a focus for the 111th Congress.  Given current economic conditions and increasing unemployment, workforce services are in high demand.  The infusion of temporary workforce funding through ARRA has enabled the workforce delivery system to provide additional services for youth, adults and dislocated workers, but the need for assistance far exceeds ARRA and formula funding.

 

Labor, education and other national organizations provided recommendations for WIA Reauthorization during 2009. Recommendation topics include:  the size of boards; sequences of services; performance measures; reporting requirements; and infrastructure funding.  Staff continues to recommend support for authorizing and appropriating actions to increase resources and provide maximum flexibility for service delivery and training for the 21st century economy and workforce.  The City will continue to partner with Maricopa County to inform the Arizona delegation about workforce needs in our region and the positive impacts of federal funding.

 

Staff recommends asking Congress to:

• Reauthorize WIA to maintain strong local flexibility for cities and local Workforce Investment Boards and ensure that local and regional employer needs are met.
• Ensure that the One Stop Systems are demand-driven, responsive and reflective of local workforce needs.
• Support WIA appropriation with separate streams of level funding to preserve current adult, dislocated worker and youth service levels.

 

IV.  Community and Human Development

 

Community Development Block Grants (CDBG):

Over the years, CDBG has become the premier tool for the City of Phoenix to achieve widespread and sustainable revitalization of neighborhoods.  Phoenix has used CDBG as the catalyst for extensive partnerships and fivefold leveraging of resources that have turned neighborhoods around.  Now more than ever, CDBG is a critical priority, as it represents the financial cornerstone of sustainable revitalization in our City during these troubled economic times.

 

According to the 2000 Census, the City of Phoenix experienced growth in population, poverty, overcrowded and aging housing units and other indicators of need far in excess of national averages.  Yet Phoenix, as the 5th largest city in the country, is only 15th in CDBG funding and receives three times less per capita funding than all higher funded cities with smaller populations.  Reform of the CDBG distribution formula is needed to eliminate the dual formula system and remove the funding disparity between older communities and fast growing central cities like Phoenix.

 

Staff recommends asking Congress to:

• Support CDBG funding at $4.5 billion nationally, which would return program funding to the 2001-2002 level.
• Reform the CDBG formula for distribution of block grants to communities.
• Support passage of a capital/infrastructure funding bill to complement and build upon the economic recovery programs generated by the Housing and Economic Recovery Act of 2008.  By making funding available for ready-to-start construction projects, the bill would address a significant backlog of municipal and nonprofit agency projects, including public housing, and generate jobs for low and moderate income persons, which would in turn generate more economic activity.

 

Foreclosure Prevention Funding:

Foreclosures have greatly impacted the City of Phoenix.  Last year the City received the fifth highest Neighborhood Stabilization Program allocation of all US cities/counties to address already foreclosed properties, based on an unprecedented high foreclosure rate last year – 12,000 foreclosures last year.  This number has been eclipsed already.  Based on year-to-date figures there will be over 16,000 foreclosures this year – a 33% increase over 2008.  It is expected that this number will double and triple in the coming years.

 

Foreclosures are compounding current revenue shortfalls.  The US Conference of Mayors and The Council for the New American City report called “The Mortgage Crisis: Economic and Fiscal Implications for Metro Areas,” projects a decrease in property tax revenues for all of Arizona at over $158m and $69m in lost sales taxes.

 

Staff recommends asking Congress to target foreclosure prevention funding through programs like the Emergency Economic Stabilization Act of 2008 or through other legislative initiatives tied to proposed financial reforms to mitigate the further impacts of this problem.

 

Weatherization Assistance Program (WAP):

WAP is offered as a one-time grant to homeowners and renters that provides for replacement of existing building components and improvements to reduce energy consumption, including sealing duct systems; insulation; cooling and heating systems; and lowering heat-gain through windows and doors.  Over the years, the Neighborhood Services Department has successfully provided assistance to low income residents through this program.  As part of ARRA the national WAP, funded by the Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy, received $5 billion in funding to disburse to states using an allocation formula.  Phoenix received a $7.2 million award to be implemented over three years, continuing its Weatherization Assistance Program for families under the 200 percent poverty level set by the U.S. Department of Health and Human Services.

 

Staff recommends asking Congress to continue to provide funding to the Weatherization Assistance Program.

 

Housing:

Based on population rather than historic development and voucher allocation, the City does not have its fair share of Section 8 Housing Choice Voucher Program funds and Public Housing Operating and Capital Funds.  Statistics show that based on its population Phoenix is dramatically under-funded and receives a fraction of the federal support that the City and its residents desperately need.  In addition, housing programs are heavily burdened with regulation.  Staff recommends support of the following federal programs.

 

The proposed Section Eight Voucher Reform Act (SEVRA) makes a number of important reforms.  These reforms, including a comprehensive solution for voucher funding, simplified rent rules, and streamlined inspection process, will help the voucher program perform more effectively and improve the City's ability to administer the program.  For example, SEVRA would decrease the number of mandatory income reexaminations for participants on fixed incomes and decrease the number of housing quality inspections required for each household.  However, SEVRA does include provisions that would create risk and increased demand on the City’s Housing Department, including permitting payments on a unit prior to passing inspection, carrying out of repairs on units due to housing quality problems, and paying utility expenses for a unit at risk of losing utility services.

 

The Housing and Urban Development’s (HUD's) proposed $250 million Choice Neighborhoods Initiative (CNI) builds upon the HOPE VI Program.  CNI proposes links with other federal agencies (Departments of Education, Transportation, Health and Human Services and the Environmental Protection Agency), and staff would support funds allocated through these partner agencies for CNI.  The vision of addressing a community holistically is laudable, but the proposal as it is needs critical revisions.  First and foremost, Public Housing Authorities (PHAs) should be the only eligible applicants.

 

At this time, the President's budget does not include specific funding for the Resident Opportunity Self-Sufficiency (ROSS) program.  HUD believes these services are eligible expenses from the public housing operating fund, so it determined that special funding set asides were unnecessary.  A PHA may choose to fund these programs if it is important for their public housing communities.  However, the funding HUD provides for operating expenses is insufficient to cover most PHAs' operating expenses, so even with the proposed increase in operating funding, it is essentially forcing PHAs to choose between housing maintenance and these social services.

 

Staff recommends support for funding the National Housing Trust Fund (NHTF), a federal program for the production of affordable housing units.  This program, once capitalized, will provide communities with funds to build, preserve, and rehabilitate rental and homeownership units that are affordable for extremely and very low income households.  Legislation was enacted authorizing the NHTF in 2008 but the program has not yet received funding.  The program should funded with sources of dedicated revenue and implemented with an effective and timely fund distribution system. 

 

In summary, staff recommends asking Congress to:

• Support H.R. 3045, the Section 8 Voucher Reform Act (SEVRA).
• Support HUD's proposed $250 million Choice Neighborhoods Initiative (CNI).
• Support restoring funding set asides for the Resident Opportunity Self-Sufficiency (ROSS) program.
• Support funding the National Housing Trust Fund (NHTF).

 

Head Start Programs:

On December 12, 2007, a long-awaited bill reauthorizing Head Start for five years was signed into law.  While the law authorized funding levels to $7.35 billion in 2007, $7.65 billion in 2009 and $7.9 billion in 2010, appropriations continue to be essentially flat.

 

The City requested and received approval for two reductions in enrollment totaling 204 slots just to keep operations balanced.  This reduction in slots for children, coupled with inadequate funding, has been offset temporarily with ARRA funding for a Cost of Living Adjustment which ends September 30, 2010 and Head Start expansion of 100 slots.  This funding will end September 30, 2011.

 

The City has also been notified that it will be awarded 300 Early Head Start expansion slots with ARRA funding.  This funding will also end September 30, 2011.  The total of these three ARRA funds would bring the 2010 funding to the authorized level in the Improving Head Start for School Readiness Act of 2007.

 

Staff recommends asking Congress to:

• Restore funding to the levels identified in the Improving Head Start For School Readiness Act of 2007.

• Continue the ARRA Cost of Living Adjustment, Head Start Expansion and Early Head Start Expansion.

 

Low Income Home Energy Assistance Program (LIHEAP):

The Mayor and Council, staff and community leaders have all worked very hard to convince the Arizona delegation to improve the share of federal LIHEAP funds to Arizona.  The primary strategy has been to fight for appropriations that will trigger funding to warm weather states such as Arizona.  Additionally, the City continues to work with other states and associations to get legislative formula revisions.

 

The City currently receives over $5 million in LIHEAP funding to provide emergency utility assistance to approximately 10,300 households.  LIHEAP provides assistance to help low income households make utility payments more affordable, avoid shutoff of utility services and maintain a safe and healthy environment for households with young children, the elderly, and the disabled.  Without these payments, utility disconnections can lead to further issues such as job loss, sickness and homelessness.

 

Of the $5.1 billion provided nationally in FY 09, $4.5 billion was allocated to the basic LIHEAP grant and the remaining $590.3 million was provided as emergency contingency funds.  This represents a $2.53 billion increase from federal fiscal year 2008.  Arizona continues to receive less than its fair share of the FY 10 base funding because of a “hold harmless” clause that prevents the triggering of a revised funding formula factoring in cooling needs for warm weather states.

 

Staff recommends asking Congress to:

·        Appropriate LIHEAP funding at $5.1 billion and remove the “hold harmless” clauses adopted in 1984 and 2008.

·        Reform the distribution formula so that emergency contingency LIHEAP funding will be awarded through the same base funding formula to assure low-income families in Phoenix receive their fair share of relief from rising energy costs.  According to the Low Income Home Energy Assistance Act of 1981, the release of emergency funds should be based on at least one of seven categories.  Arizona continues to meet the criteria in at least five of these seven categories.

 

Community Service Block Grant (CSBG):

The Community Services Block Grant supports employment, food, housing, health, and emergency assistance to low-income families and individuals (including those without children who do not qualify for other types of assistance like Medicaid), the homeless, and the elderly.  The Department of Health and Human Services (DHHS) distributes these funds to states through a population-based formula. States, in turn, distribute 90 percent of these funds to local Community Action Agencies.

 

The City’s Human Services Department is designated as the Community Action Agency for the City of Phoenix and currently receives $1.5 million in CSBG funding.  Reduction or elimination of CSBG funding would impact the City’s capacity to collaborate with community partners to provide an integrated network of services for low-income people.  These partnerships include providing case management services to homeless families, supporting domestic violence initiatives, providing technical assistance to community and faith-based social service programs and developing nationally recognized Earned Income Tax Credit and financial education programs

 

Staff recommends asking Congress to:

• Support at least $746 million in CSBG funding for both FY 2010 and FY 2011.

·        Support Reauthorization of CSBG at $746 million for FY 2011.

 

Older Americans Act:

The Older Americans Act (OAA) funds provide for Meals on Wheels (home delivered meals), congregate meals, senior center services, transportation, support for family caregivers, home and community services, health promotion and disease prevention, civic engagement and community service employment for low-income older workers. The DHHS Administration on Aging distributes these funds to states.  The State of Arizona, in turn, distributes the funds to eight regional Area Agencies on Aging which allocate to local funding providers that compete for the funds in specific service areas.

 

The City currently receives $1.4 million in OAA funding for senior programs.  Additionally, the City received $106,197 from ARRA for congregate meals.  The City offers nutrition services that provide meals to increase the health, functionality and quality of life for seniors.  In addition, the City provides training sites for low-income, part-time trainees placed by the Senior Community Services Employment Program (Title V) to learn new skills, improve their finances, and regain their sense of self-worth.  Reductions, or level OAA funding, would restrict the City’s ability to provide adequate daily nutrition, access to social services and a safe environment for older, frail adults.

 

Staff recommends asking Congress to support an increase in Older Americans Act funding in FY 2011.

 

Lead Based Paint Hazard Control (LBPHC) Grant:

Since 1996, the City through the Neighborhood Services Department (NSD) has received numerous LBPHC grants funded by HUD.  The City has remediated lead hazards in more than 1,000 units of privately-owned low-income housing.  Additionally, the program provided significant community education to more than 18,000 people and trained more than 300 housing industry workers in lead-safe work practices. 

 

Staff recommends asking Congress to continue full funding of the LBPHC Grant through the traditional process and ARRA.

 

V.  Environment

 

The City has worked in partnership with federal agencies to improve our water, land and air quality and enrich the environment of our community.  One large-scale effort has been with the U.S. Army Corps of Engineers (Corps) to restore the dry and environmentally-damaged Salt River bed.  Three projects: Rio Salado; Rio Salado Oeste; and Tres Rios span over twenty miles within Phoenix and link with other flood control and river restoration projects in the metro area.  The City’s interests also include any legislation that affects clean air and water, the Endangered Species Act, water security, salinity research and regulations as well as brownfields legislation which could arise during the 111th Congress.

 

Rio Salado Oeste Ecosystem Restoration:

One of the City’s great environmental accomplishments has been the completion of the $100 million Rio Salado Habitat Restoration Area from 24th Street to 19th Avenue.  The plan provides much needed habitat for Arizona wildlife, regional trails and economic development benefits beyond the banks of the riverbed for the local community.  Now that that project is complete, staff is focused on the Rio Salado Oeste ecosystem restoration project.  Rio Salado Oeste will restore an 8-mile reach of the Salt River between 19th Avenue and 83rd Avenue.  The project is currently in the first phase of design.  The project received $295,000 in 2008, $566,000 in 2009, and $1.5 million in 2010.

 

Staff recommends asking Congress to appropriate $2 million to the U.S. Army Corps of Engineers for Rio Salado Oeste.

 

Tres Rios Environmental Restoration and Flood Control:

Tres Rios is a 428-acre flood control and environmental restoration project with incidental water quality and recreation opportunities along the Salt, Gila, and Agua Fria Rivers located downstream from 83^rd Avenue west of Phoenix, Arizona.  Water for wetlands and river restoration will be supplied by the 91st Avenue Wastewater Treatment Plant (WWTP).  Development of the wetlands is critical to expansion of the WWTP and provides a more economical alternative than others for meeting water quality standards.  Tres Rios also will provide flood control to more than 600 structures in the project area. 

 

The U.S. Corps of Engineers has completed the project’s levee from 105^th Avenue to 123^rd Avenue, with the remaining phase to be constructed in FY 2010.  The flow regulating and over-bank wetlands are under construction and will be complete in June 2010.  The pump station is 90% designed and will be advertised in February for award in June 2010.  The expected completion date of the pump station is June 2012.

 

Staff recommends asking Congress to:

• Appropriate $15 million to the U.S. Army Corps of Engineers for continued construction of Tres Rios.
• Include reauthorization of the Tres Rios Project at a maximum cost of $230 million in the Water Resources Development Act (WRDA) of 2010.

 

Agua Fria Linear Recharge Project:

In WRDA 1992, the Phoenix Metro/ Agua Fria Linear Recharge project was authorized to provide federal funding to the Cities of Glendale, Mesa, Phoenix, Scottsdale and Tempe (also know as the Sub-Regional Operating Group or SROG) to develop facilities within the Agua Fria River to recharge effluent from the 91^st Avenue Wastewater Treatment Plant.  The Agua Fria River is located in the western portion of metropolitan Phoenix.  Water recovered from this project is planned to be used to meet future water supply needs of all the SROG cities.

 

Funding will be used to identify and explore opportunities to enhance the economic feasibility of recharge and recovery of effluent through the Agua Fria Linear Recharge Project, and to evaluate alternative approaches for storing, distributing, exchanging and otherwise using water treated at the 91^st Avenue WWTP, along with water presently treated at the 23^rd Avenue WWTP or the Cave Creek Water Reclamation Plant (both of which can be diverted to 91^st Avenue WWTP), to meet future water resource needs. 

 

Funding will also be used for evaluation, design and pre-construction activities associated with two Aquifer Storage and Recovery (ASR) wells in the City to both demonstrate the feasibility of storing and recovering reclaimed water via ASR, and to begin augmenting aquifers for long-term sustainability and drought shortage mitigation.

 

Staff recommends asking Congress to appropriate $200,000 for the Agua Fria Linear Recharge Project.

 

Central Arizona Salinity Study and Concentrate Management Viability Assessment:

The Central Arizona Salinity Study (CASS) is a work group comprised of federal, state, and local governments along with private engineering and research groups.  CASS examines the problems created by importing highly saline water, human activities that concentrate salts, and the lack of drainage needed to export salts in central Arizona. Various scientists, engineers, and academicians have warned that continued importation and concentration of salts will cause many problems in the future for the communities of central Arizona.  CASS coordinates the participating agencies and communities in order to efficiently and effectively identify and assess salinity problems and develop possible solutions for central Arizona’s growing salinity issues.

 

CASS Phase I examined issues and factors associated with highly saline waters in central Arizona, such as identifying the affected communities, the severity of the problem, and timeframe for necessary action.  Phase I also looked at future trends in using membrane treatment facilities for treating highly saline or impure water and the resulting problems from operating these types of facilities.  Phase II used the data and information gathered in Phase I to develop trends, projections, and recommendations of possible regional salinity management strategies.

 

Based on the recommendations of Phase II, one the areas of most concern is concentrate management.  Currently in central Arizona the two main concentrate management strategies are sewer disposal and evaporation ponds.  Approximately 40 MGD of concentrate could be produced in central Arizona by 2035 -- a viable water resource for central Arizona that needs to be recovered for either potable use or reuse options.  The next phase of the study will review the viable options for concentrate management and establish a pilot project to test different concentrate management processes.

 

Staff recommends asking Congress to appropriate $1 million for the Central Arizona Salinity Study.

 

Sustainable Water Supplies and Infrastructure:

Legislative and rulemaking efforts are underway addressing adaptation to impacts on water supplies caused by climate change.  Staff recommends that the City monitor and advocate for legislation that creates opportunities and funding for adaptation efforts, research on water resources impacts, and dissemination and data acquisition that will better define the impacts. 

 

Likewise, staff recommends that the City support federal rulemaking and legislation that promotes a reasonable balance between the costs of water resources development, treatment and delivery against protections for the environment linked to those water resources management functions.

 

Brownfields:

Staff recommends that the City monitor and advocate legislation that would provide federal funding for environmental assessment, clean-up, and redevelopment of brownfields, including federal tax credits for environmental cleanup. 

 

Endangered Species Act:

The City is impacted by various requirements of the Endangered Species Act.  Staff recommends that the City continue to participate in local, state and federal efforts to reform the Endangered Species Act that promote a reasonable balance between protection and recovery of threatened and endangered species and the regulatory impacts of the Act on the City and its operations.

 

The Urban Park and Recreation Recovery Act (UPARR) and Land and Water Conservation Fund (LWCF):

It has been many years since Congress supported the UPARR which was established in 1978 and authorizes up to $725 million in matching grants to economically distressed urban communities.  Phoenix received over $1 million in UPARR funds in the past, but no money has been appropriated to the program since 2002.

 

The LWCF was authorized in 1964 to fund purchase and development of parks, wildlife refuges, and recreation resources.  It derives its funding from offshore oil and gas drilling fees.  There are two sides to the program:  a federal side which authorizes up to 100% funding for additions to National Parks, National Wildlife Refuges, National Forests, and other federal public lands; and a state side which provides 50% in federal funds to states and localities as matching grants.

 

The states, cities, counties, and towns that apply for and accept funding from the LWCF state assistance grant program agree to match the federal investment on a dollar for dollar basis.  The states and local governments also agree to keep the land purchased in protected status in perpetuity and to open such lands and facilities to the public forever for recreation and enjoyment.  Although in some years Congress allocated as much as $900 million, recently the fund has dropped as low as $25 million.  Phoenix has received over $10 million in LWCF grants since 1965.  In addition, staff recommends researching opportunities for competitive and discretionary grants to assist with purchase of property in the Sonoran Preserve.

 

Staff recommends asking Congress to fully fund both the UPARR and LWCF programs to provide much-needed additional resources for the City's parks and recreation capital needs.

 

21st Century Community Learning Centers:

The 21st Century Learning Centers program provides grants to communities to establish or expand centers to provide extended learning opportunities for students and related services for their families during non-school hours for children, particularly students who attend high-poverty and low-performing schools.  Grants funds are allocated to states, which in turn make competitive awards to school districts, community-based organizations, faith-based organizations, and public agencies for projects that primarily serve students attending schools in high poverty areas.  This program is a part of the Elementary and Secondary Education Act (ESEA, also called No Child Left Behind) and would be included in the reauthorization of the ESEA. 

 

Staff recommends asking Congress to authorize and appropriate funding for this program which is a potential direct benefit for children in Phoenix and the City’s after-school programs.

 

VI.  Sustainability Initiatives

 

Staff is committed to sustainability and strong environmental stewardship.  The City has initiated and implemented many programs that go beyond regulatory requirements and laws, resulting in national recognition and a local leadership role.  Staff recommends researching opportunities for federal appropriation and authorization language in furtherance of the City’s Sustainability Program, such as funding for acquisition of open space and preserve lands or funding or other incentives for energy efficiency programs.  In addition, staff recommends researching opportunities for competitive and discretionary grants to assist with purchase of property in the Sonoran Preserve.

 

The Energy Efficiency and Conservation Block Grant (EECBG) Program was first authorized by the Energy Independence and Security Act of 2007 (EISA) to provide funds to local and state government, Indian tribes, and territories to develop and implement projects to improve energy efficiency and reduce energy use and fossil fuel emissions in their communities.  ARRA appropriated $3.2 billion in FY 2009 for these grants, the first funding for EECBG.  The City is planning to use its $15.2 million allocation to plan and implement energy efficiency and solar energy projects in city facilities and to convert a number of traffic signals to efficient LED technology.  Staff recommends asking Congress to fund EECBG in FY 2011 at its full authorized level of $2 billion.

 

VII.  Other Federal Items

 

Internal Revenue Service (IRS) Pension Reform Rule:

In May 2007, IRS published a final regulation on distributions from a pension plan upon attainment of “normal retirement age.”  For government plans, the changes were to take effect in plan years starting on or after January 1, 2009.  Due to pressure from state and local governments, the effective date was delayed until January 1, 2011.  Even with the delayed implementation, the regulations still did not allow for the fact that state and local governments have legislative or constitutional processes with varying timelines to change the rules for government retirement plans.

 

Established pension plans in Arizona typically utilize an “age plus years of service” approach to determine an employee’s normal retirement age.  The IRS rule is vague but could impact existing plans, as the proposed minimum normal retirement age range is 55-62.  It does not clarify whether this rule would apply to existing employees, new employees in existing plans or only newly-established plans after the rule takes effect.

 

In November 2009, the IRS issued Notice 2009-86, explaining its intent to change the effective date from January 1, 2011 to January 1, 2013 for government plans to comply with its 2007 Normal Retirement Age Rule.  The National Association of State Retirement Administrators (NASRA) has explained to the City that the IRS was aware that local government groups were prepared to pursue a legislative strategy to “fix” the 2007 Rule and therefore decided to provide additional time to review its rule.  According to the notice, the extension provides IRS and Treasury with additional time to “consider comments received with respect to the effect of the NRA regulations on governmental plans.”  The extension specifically does not mention additional time for government plans to comply with the normal retirement age rule.  

 

Staff and our federal lobbyists have been actively engaged to bring attention to this issue.  We have joined with national partners such as the National Association of State Retirement Administrators and the National League of Cities to engage Congress and IRS.  City staff will continue to participate in the national dialogue on this topic.

 

Increased Efficiency with Federal Agencies:

City departments work closely with the federal agencies that oversee and/or fund various programs.  This year, staff is proposing to work closely with agency liaisons to identify opportunities to streamline procedures and increase efficiencies.  Staff will begin to document opportunities with the Department of Transportation (DOT), Housing and Urban Development (HUD), Agriculture, Labor and others.  Suggestions include the ability to use tools such as Job Order Contracting, Construction Management At-Risk (CM@Risk) and environmental streamlining.  Staff recommends that the City work the Congressional delegation and the agency liaisons to make positive changes that will benefit the City and it residents.

 

RECOMMENDATION

 

Staff recommends approval of this proposed federal legislative agenda.

 

 

CITY COUNCIL REPORT
POLICY AGENDA
TO:	David Cavazos City Manager	AGENDA DATE:		December 8, 2009
FROM:	Karen Peters Government Relations Director	ITEM:	6b
SUBJECT:	2010 STATE LEGISLATIVE AGENDA

 

This report describes the City’s proposed state legislative agenda for the Second Regular Session of the 49^th Arizona State Legislature.  Once reviewed and approved by the Mayor and Council, the agenda will define the City’s state legislative priorities and guide the City’s lobbying activities at the State Capitol.  As bills are introduced and debated, the agenda will evolve with input from the Mayor and Council.  The session will commence on Monday, January 11, 2010.

 

Guiding Principles and Key Priorities

 

Each year the State Legislature considers thousands of bills and amendments, many of which impact municipal operations.  Staff will brief the Mayor and Council throughout the session and seek direction regarding important bills and amendments; however, in order to prioritize and guide staff’s lobbying efforts, we recommend that the Mayor and Council endorse familiar, but critical, guiding principles as our highest priorities – maintaining and protecting local authority, enhancing fiscal sustainability and opposing unfunded mandates.

 

Local Authority – Cities and towns are established voluntarily by people living in communities in order to foster economic activity and deliver services that protect public health, safety, and quality of life.  Phoenix was incorporated in 1881, thirty-one years prior to Arizona statehood, and has enjoyed 128 years of uninterrupted growth and community involvement.  The City’s Charter, adopted in 1913, empowers Phoenix residents to determine the structure and authority of city government in our unique community.  Staff recommends that the City work to protect the ability to set policy at the local level and oppose legislation that preempts local authority.

 

Fiscal Sustainability – The City’s budget includes revenues from a number of State sources, most importantly “shared revenues” from state income, sales, and vehicle license taxes.  Shared revenues makes up close to 40 percent of the City’s general fund, helping to pay for police, fire, streets, parks, and other critical City services.  Staff recommends that the City oppose any reduction of shared revenues.

 

Oppose Unfunded Mandates – Given our fiscal predicament, new unfunded mandates could make the City’s budget worse.  Staff recommends approval to oppose state legislative efforts that shift new programmatic duties to the City without accompanying funds.

 

OTHER LEGISLATIVE ISSUES

 

In addition to the guiding principles and priorities described above, staff recommends that the City include a limited number of specific issues in its agenda for 2010.  These issues have been identified by staff as well as the Mayor and Council over the last several months to respond to specific community needs.

 

Public Safety:

 

Update the Non-Injury Vehicle Collision Reports Threshold – State law requires that an accident report be prepared for non-injury accidents where the 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 were non-injury related.  A study performed by Police determined that 43 percent of the total non-injury accidents in 2008 were under $2500 in damages.  In an effort to improve efficiency with fewer resources, staff requests approval to increase the dollar amount from $1000 to $2500.

 

Increase the Penalties for Assaulting Park Rangers – The City’s park rangers perform a number of tasks including the enforcement of park rules and regulations.  In recent years, park rangers have experienced an increase in attacks.  In fact, one park ranger was shot while on duty.  Staff seeks approval to amend the aggravated assault list in state law by adding park rangers.

 

Revise Drug Impairment Statutes – Police and City prosecutors are experiencing an increase in drug DUI cases.  In order to effectively protect the public from these violators, staff requests the authority to update the list of drugs and toxic substances that, when abused, lead to impairment, and clarify when a driver’s license can be revoked for a drug DUI.

 

Neighborhoods:

 

Elevate Penalties on Graffiti Crimes – Graffiti vandals spread their blighting impact throughout communities and cost local government and private property owners millions of dollars each year for removal.  With the goal of deterring these vandals, staff requests approval to pursue legislation that would increase the penalty for damaging property to a class 1 misdemeanor.

 

Tenant Notification on Foreclosure Sales – Phoenix continues to have an increasing number of properties in foreclosure, including many multi-family properties.  Tenants of these properties are often the last to know and have few rights when a foreclosure sale happens, forcing them to vacate with little or no notice.  Staff requests approval to seek a change in state law to add tenants to the list of interested parties that must be contacted before a trustee sale, thereby providing impacted residents additional time to seek alternative housing.

 

Reporting Requirements for Entities Taking Possession of a Property with a Trustee’s Deed, Sheriff’s Deed or Foreclosure Action – Staff is still experiencing difficulty in contacting the appropriate owners of foreclosed properties that are in violation of city codes (i.e. weeds, trash, stagnant pools, broken windows, graffiti).  To assist neighborhoods that want these issues addressed in a reasonable time frame, staff seeks approval to amend state law to require that the Trustee deed in a foreclosure sale set forth contact information for the successful bidder/purchaser of the property for both in-state and out-of-state purchasers.  In addition, the trustee should be the one to record the Trustee deed within seven days rather than the purchaser.

 

Economic Development:

 

Support Phoenix Biomedical Campus Expansion Efforts – The City – in partnership with the Translational Genomics Research Institute, the University of Arizona, Arizona State University, and Northern Arizona University – is dedicated to this endeavor in which medical research and training will converge with the goal of improving health care within Arizona.  Another benefit for the state would be its estimated $34.3 billion economic impact by 2020.  Much of what has been accomplished would not have become reality without support and resources approved by the Governor and state legislature.  Staff requests the authority to advocate for continued funding and investment for the biomedical campus.

 

Support Extension of the Motion Picture Production Tax Incentives Program – The tax credit program that is available to qualified motion picture projects in Arizona is scheduled to expire next year.  An economic impact study published by the Phoenix Film Office reports that from July 2005 through June 2009 the film industry contributed more than $147 million to the Greater Phoenix area.  The tax program is believed to have played a vital role in attracting these film projects to the area.  Staff seeks approval to support the extension of the Motion Picture Production Tax Incentives Program.

 

Other Issues:

 

Oppose Efforts to Extend the Sunset on the Payday Loan Industry Within the State – The state’s licensing program for payday lending institutions is set to expire on July 1, 2010.  The City has historically opposed legislation that either enhanced the industry or extended the licensing program because of the impacts to our residents who apply for and receive loans that could accrue interest at rates as high as 390 percent.  Staff recommends approval to oppose any efforts that will extend this industry.

 

Representation Modification to the Local Public Safety Retirement Board – State law establishes the makeup of a local government’s public safety retirement board.  To ensure that the board can address its business in a timely manner, staff requests approval to purse legislation that would allow board members to assign designees when they are not able to attend scheduled meetings.

 

Simplification of the Public Construction Procurement Process – Current state law permits public agencies to self-perform work without going out to bid.  Current provisions have dollar thresholds associated with different types of construction work that can be done by an agency with its own construction resources.  The dollar thresholds and associated cost elements for each threshold vary greatly depending on the types of work being done.  Staff requests approval to work on legislation that would simplify the dollar thresholds and cost allocation.

 

Illegal Dumping Penalties – To assist property owners that are victims of illegal dumping on their land, staff requests the authority to establish penalties on violators.  Staff has worked with the last year’s bill sponsor to ensure that the City’s Neighborhood Preservation Ordinance was not impacted.

 

CONCLUSION

 

Government Relations staff requests approval of the City of Phoenix’s 2010 State Legislative Agenda.

 

 

CITY COUNCIL REPORT
POLICY AGENDA
TO:	David Cavazos City Manager	AGENDA DATE:		December 8, 2009
FROM:	Mark E. Leonard, Director Development Services Department	ITEM:	7
SUBJECT:	DEVELOPMENT SERVICES AD HOC TASK FORCE REPORT

 

The purpose of this report is to transmit the recommendations of the Development Services Ad Hoc Task Force (Task Force) to the Mayor and City Council for consideration. 

 

THE ISSUE

 

The Task Force proposes a series of actions that will provide alternative plan review options, expand the Adaptive Reuse Program, improve inspections consistency, improve communication between development-related departments, and provide permit extension and reinstatement relief during these difficult economic times. All of these actions represent continuous improvement in DSD to make development processes in Phoenix among the best in the United States. 

 

The Transportation, Infrastructure and Sustainability Subcommittee approved the Task Force recommendations on November 9, 2009.

 

OTHER INFORMATION

 

The Task Force was formed by the Mayor and City Council on April 15, 2009, with the following charge:  work with City staff to review the efforts undertaken by the Development Services Department (DSD) to improve processes and services to customers and identify areas for continuous improvement including, but not limited to, turnaround times, predictability of plan reviews, and consistency of inspections.  A review of the size and scope of projects included within the City’s Adaptive Reuse program was also included.  The Task Force was co-chaired by Vice Mayor Tom Simplot and Councilman Sal DiCiccio and included key representatives of the development community.  Attachment A provides a roster of the Task Force members.  (Attachments A through H are available for public review at the City Clerk’s Office, 200 W. Washington, 15^th floor.)

 

The Task Force held monthly meetings between June and October to complete its charge.  During the first meeting, members agreed to concentrate on improving turnaround times, explore self-certification programs, expand the existing Adaptive Reuse program, and improve inspection consistency.  In addition to the monthly Task Force meetings, working groups concentrating on each of these areas were developed and met periodically to gather information and develop ideas and alternatives which were later shared with the entire DSD Ad Hoc Task Force.  Below is a summary of the major issues addressed by the Task Force.

 

ACCOMPLISHMENTS

 

Building Plan Self-Certification Program:

DSD experienced an increase in plan review turnaround times when construction activity reached its highest levels.  To provide customers with an opportunity to expedite the plan review process, DSD has since implemented a Priority Expedited Plan Review and Third Party Plan Review Program.  To help maintain target turnaround times and provide customers with an additional plan review option, the Task Force directed staff to explore the feasibility of implementing a building plan self-certification program in Phoenix.  Staff conducted research on self-certification programs in the top ten largest cities in the United States and twelve local municipalities in the state of Arizona.  Results of this research were shared with Task Force members at the July 28 meeting.  Only three of the top ten cities, Chicago, New York, San Diego, and Pima County, were found to be operating self-certification programs.  Attachment B provides information on the programs of the four organizations.

 

Self-certification of building plans simplifies the building permit review process for eligible projects where the licensed architect or structural engineer of record takes full responsibility for code compliance.  Plan reviews are eliminated by allowing the Professional of Record to certify the project complies with the building code.  Random audits are generally conducted by city staff to monitor the performance of the design professionals and to ensure safety.

 

The city of Chicago program appears to be the most feasible for implementation in Phoenix.  In existence for ten years, the Chicago program includes single-family and multi-family residential, mercantile, and business occupancies.  There are size limitations placed within each category and prototype plans are generally required.  Both of these actions are included to reduce risk to the city.  Task Force and staff conducted a conference call with Chicago officials on September 2 to further discuss their self-certification program philosophy and experience. 

 

Members of the Task Force recommended DSD develop a self-certification program based on the city of Chicago’s model.  The Task Force unanimously approved the proposed self-certification program and asked that it be evaluated in one year.  Attachments C and D provide details of the proposed City of Phoenix program and evaluation measures.

 

Adaptive Reuse Program Expansion:

In October 2008, the City Council adopted an Adaptive Reuse Program developed by the City’s Adaptive Reuse Task Force.  The existing program is limited to buildings that are 5,000 square feet or less and twenty-five years or older.  At the direction of the Task Force, staff drafted a proposal to expand the scope of the existing program to allow a greater number of projects the opportunity to participate. 

 

A three-tier approach has been developed which would allow buildings up to 100,000 square feet to participate, and large-scale commercial retail (big box) structures above 100,000 square feet on a case-by-case basis.  The initial tier of 5,000 square feet or less would continue to receive the greatest amount of adaptive reuse relief.  The larger tiers also contain significant relief elements, including the automatic use of the International Existing Building Code.  Attachment E provides the proposed three-tier expanded program.

 

Inspections Consistency:

Members of the Task Force voiced their concerns regarding two general issues related to inspections consistency.  The first issue involved improving consistency between plan review and inspections.  The goal was to minimize the number of changes made to approved plans by inspection staff in the field.  The second issue involved consistency between field inspectors so that all codes and policies are enforced uniformly throughout the City.  Members of the Task Force and staff from Development Services, with input from Water Services and Street Transportation, worked together to identify new policies and procedures to make improvements in these areas.  Attachment F provides details of the recommendations developed.

 

Development Process Coordination and Communication:

Lack of communication between development-related city departments was raised as an issue by the Task Force.  To address this concern, staff presented a proposal to form a Development Coordination Committee comprised of executive level staff from Development Services, Planning, Fire, Water Services, and Street Transportation.  The purpose of the committee would be to provide a mechanism to ensure communication among the five departments and identify and address process issues.  As part of its charge, the committee will solicit input from the development community through the Development Advisory Board.  Attachment G provides details of the proposed committee.

 

Permit Extension/Reinstatement Code Amendments:

To assist the development community with the completion of building projects during the current recession, the department developed two amendments to the Administrative Code.  These amendments allow more flexibility and, in some cases, reduced fees in both extending construction permits about to expire and reinstating permits that expired within a year. 

 

The proposed changes provide for multiple permit extensions rather than only one as allowed in the current code language.  They also provide for a reduced fee on projects that need only a few inspections to complete.  In regards to expired permits, the proposed amendment to the code allows the City to reinstate a permit on a project that was permitted under the previous building code and charge a reduced fee for a short duration to complete a project.  Attachment H provides the specific amendment language. 

 

RECOMMENDATION

 

The Development Services Ad Hoc Task Force recommends City Council approval of the following set of recommendations:

 

1.        Implement a Building Plan Self-Certification Pilot Program modeled after the City of Chicago program.  Evaluate the pilot program and report back results to the City Council after one year of operation.

 

2.        Expand the Adaptive Reuse Program by creating a three-tier approach, which allows buildings up to 100,000 square feet in size to participate.  Also, large-scale, commercial retail (big box) structures would be allowed in the program on a case-by-case basis.

 

3.        Adopt a twenty-four point outline of actions developed to improve inspection consistency.  These actions would address consistency between plan review and inspections, between individual inspectors, between plans and construction, and efficiency of inspections.

 

4.        Approve the creation of a staff Development Coordination Committee comprised of executive representatives from Development Services, Planning, Fire, Water Services, and Street Transportation.  This committee would provide a mechanism to improve communication and development coordination between these departments. 

 

5.        Endorse the Permit Extension/-Reinstatement code changes that would help complete building projects during the down economy.  Staff will bring forward those items to the City Council for formal adoption at a later date.

 

The Transportation, Infrastructure and Sustainability Subcommittee approved the Task Force recommendations on November 9, 2009.

 

 

ATTACHMENTS  (Copies of the attachments are available in the City Clerk Department, Phoenix City Hall, 15th Floor):

A - Task Force Roster

B - Self-Certification Research

C - Proposed Self-Certification Program

D - Self-Certification Evaluation Criteria

E - Proposed Expanded Adaptive Reuse Program

F - Recommendations to improve Inspections Consistency

G - Development Coordination Committee

H - Permit Extension / Reinstatement Policies