*REVISED
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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, January 26, 2010, at 2:00 P.M. located in the City Council Chambers, 200 West Jefferson Street, Phoenix, Arizona. |
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AN EXECUTIVE SESSION WAS CALLED FOR THIS
TIME AT THE POLICY
SESSION MEETING OF |
THE TIMES LISTED
FOR AGENDA ITEMS
Action Taken:
Mayor Gordon called the meeting
to order at
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ESTIMATED |
COUNCIL INFORMATION |
This item is scheduled to give City Council members an opportunity to publicly request information or follow-up on issues of interest to the community. If the information is available, staff will immediately provide it to the City Council member. No decisions will be made or action taken.
Action Taken:
There were no announcements or follow-up requested.
CONSENT AGENDA.
This item is scheduled to allow the City Council to act on the Mayor’s recommendations on the Consent Agenda. The Consent Agenda has been publicly posted.
Action Taken:
Councilwoman Neely motioned for approval. Councilman Mattox seconded the motion, which passed 6:0.
CALL FOR AN EXECUTIVE SESSION.
A vote to call an Executive Session may be held.
Action Item:
There was no call for an Executive Session.
REPORTS
This item is scheduled to allow the City Manager to report on changes in the City Council Agenda and provide brief informational reports on urgent issues. The City Council may discuss these reports but no action will be taken.
Action Item:
City Manager David Cavazos introduced a delegation from the
State of
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ESTIMATED 2. |
INNOVATION |
Due to existing economic challenges, the City must develop and implement innovative processes that result in more efficient delivery of services, while at the same time maximize the use of limited taxpayer dollars. Initiatives by other dynamic organizations to identify and promote innovation and continuous improvement have resulted in improved service delivery at the most effective cost.
This item is for information only. No City Council action is required.
Action Taken:
City Manager David Cavazos stated the Innovation and Efficiency Task Force would provide a brief overview and ask for City Council input. Mr. Cavazos indicated innovation and efficiency would take place everyday, concentrating on department core missions, cost reductions, and maintaining services through streamlining and consolidation. He discussed two phases of consolidations. Mr. Cavazos commented the City would significantly decrease the number of departments within the next twelve to eighteen months. Mr. Cavazos noted department consolidations would be presented to Council for approval.
Councilwoman Neely left the meeting at
Mr. Cavazos introduced the task force Co-Chairs, Director of Aviation Danny Murphy and Public Transit Director Debbie Cotton. Mr. Murphy indicated the City Manager had created this task force to address current economic challenges. Mr. Murphy noted four additional action subcommittees had been created and would meet with the task force every other week.
Ms. Cotton indicated
Councilwoman Neely returned to the meeting at
Mr. Murphy discussed four deliverables which included:
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Identify and implement process improvements and
efficiencies in service delivery
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Identify methods to move beyond cost recovery to
revenue enhancement
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Identify Core Mission of City departments and
examine opportunities for Public/Private Partnerships
·
Review organizational structures and recommend
consolidations
Ms. Cotton stated the members of the Innovation and Efficiency Task Force consisted of fifteen operating departments. Ms. Cotton added the Task Force would also conduct outreach to the community to incorporate their ideas. Ms. Cotton stated the task force would return to Council with short-, mid-, and long-term updates.
Mayor Gordon asked that the Task Force bring forward recommendations for Council vote before the short-, mid-, or long-term updates. Mr. Murphy added the Task Force would also be meeting every other week with the City Manager who would provide updates for the Council.
Mayor Gordon commented the City had been addressing new innovations and efficiencies for some time. He asked how much money had been saved since last March. Mr. Cavazos replied innovations and efficiencies had been taking place since the 1950s when the Charter was reformed. He added $20 million had been saved since last March due to innovations and efficiencies.
Mayor Gordon asked how much money had departments been able to save over the last four months. Mr. Cavazos replied departments had saved $37 million.
Mayor Gordon asked that the Task Force provide an ongoing report that contained all recommendations including the rejected ones. Both Ms. Cotton and Mr. Murphy agreed.
Councilman Gates thanked the Task Force members for their efforts and the City Manager for its creation. He also asked the Task Force to consider locally owned businesses and contractors when considering privatization.
Councilwoman Williams asked the Task Force to involve retired executives from the private sector to attain their perspective and feedback. She added the Task Force should consider inviting retired executives to the Task Force meetings. Councilwoman Williams also asked that the Task Force consider appropriateness and balance when considering implementing cost recovery for services.
Councilman Mattox stated his support to incorporate private sector executives in the Task Force. He asked that the Task Force look at the vendor-approved list to add more cost-effective vendors. He also asked that the task force find a way for the City to participate in its own Request for Proposal process similar to the Solid Waste Managed Competition.
Councilwoman Williams left the meeting at
Councilman Johnson stated his support for small and local businesses in the potential pursuit of privatizing City services. He added he would like to see the Task Force research the option of conducting professional and contractual services in-house, review departmental charges and make them more reasonable, centralize bulk item purchases in an attempt to reduce cost, and explore areas of expertise where the City would be a regional service provider to smaller municipalities.
Councilman Johnson left the meeting at
Councilman DiCiccio asked if members of the private sector would be a part of the Innovation and Efficiency Task Force. Mr. Murphy explained the Task Force would initially include City Manager Office representatives and Department/Function Heads, with a separate group conducting outreach to bring in the community and private sector input.
Mayor Gordon expressed concern involving the business community due to potential conflict of interest. City Attorney Gary Verburg indicated the appointment of private sector members to a working committee by City Council would convert it into a subcommittee that would have to abide by open meeting law rules.
Councilman DiCiccio stated it would be beneficial to make the Innovation and Efficiency Task Force a subcommittee so that the public could be a part of the Task Force.
Councilwoman Neely stated the City specialized in many areas in which smaller cities would be willing to pay for those services and benefit from the City’s help. She expressed her interest in the City becoming a regional service provider. Councilwoman Neely noted her support for utilizing City staff’s expertise in addressing efficiency savings.
Councilwoman Neely left the meeting at
Mayor Gordon commented the City was successful because it evaluated innovation and efficiencies before proceeding. He added City cuts to service costs and salaries will impact the level of customer service and privatization should be considered more than just a low-cost benefit.
Councilwoman Neely returned to the meeting at
Backup included in Council packet/City Clerk’s Office.
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ESTIMATED 3. |
BUDGET UPDATE |
Staff: Zuercher, Gleason |
This report provides additional information to the Mayor and
City Council on the Public Safety Specialty Funds and the General Fund
financial transactions that will be included in the budget-balancing proposal.
* This item is for
information, discussion and possible action.
Action Taken:
Budget and Research Director
Cathy Gleason provided a budget update regarding Public Safety Specialty
Funds. Ms. Gleason indicated current
sales tax collections have not been enough to cover current cost of existing
Police and Fire Department positions, leaving these funds structurally out of
balance. Ms. Gleason indicated a
preliminary balancing plan had been developed to balance these funds by June
2012, noting positions would need to be reduced by January 2011. She added other factors and actions that
would reduce the need for layoffs in these funds included reduction of employee
costs, achieving sales tax collections above projections, and adding new
revenue. Ms. Gleason stated staff
recommended preparation of further analysis over the summer after the General
Fund budget was balanced and labor costs and specialty fund revenue changes
were known. She added staff would return
in early fall with final recommendations to adopt a contingency policy and
proposed number of layoffs necessary to balance the budget by June 2012. Ms. Gleason explained projected attrition
rates had not been reached within the Police Department, adding there were two
possible solutions that included additional cuts to the Police Department’s
budget and/or employee concessions in the current year.
*Mayor Gordon asked the
following questions: 1) what was the average salary for a police officer; 2)
what percentage of employee cost pertained to Public Safety; 3) was Public
Safety’s salary tax earmarked for protection; and 4) how many protected Public
Safety positions were in the General Fund.
Ms. Gleason replied Public Safety costs made up seventy percent of the
General Fund budget with the cost of an average sworn public safety officer
being over $120,000 in salary and benefits.
She stated Public Safety’s salary was protected. Lastly, she explained there were about 5,000
Police and Fire Department positions in the General Fund.
Mayor Gordon asked if the City
eliminated every department to balance the budget, protecting Public Safety,
would the City have the ability to keep operating. Ms. Gleason replied no.
Ms. Gleason indicated an
estimated $95 million in General Fund financial transactions is recommended to
help balance the budget over the next two years. She explained some of the financial
transactions included the following:
- Reduced
contributions to reserve funds
- Debt
service restructuring
- Lease-purchase
financing for essential fleet replacement
- Move
property tax from secondary to primary to pay for tort claims
- Reduce
pay-as-you-go capital
- Health
insurance premium holiday
Ms. Gleason also noted
expenditures were exceeding revenue collections and that the City would mostly
likely not have access to these one-time financial transactions in the future.
Councilman Gates asked if the
financial transactions included the current fiscal year and the following
year. Ms. Gleason replied the financial
transactions had been evenly split between this fiscal year and next year.
Councilman Gates asked about the Specialty Fund reductions,
noting they did not appear to be evenly distributed. Ms. Gleason responded that was correct due to
vacancies and future changes. Mr.
Zuercher added Police positions took longer to fill than Fire positions. Councilman Gates clarified Police and Fire
Department Specialty funding would not be addressed until February or
March. Ms. Gleason replied that was
correct.
Councilman Gates asked if City Council policy and decisions
could impact specialty fund revenues.
City Manager David Cavazos replied revenues from the food tax could go
directly to specialty funds.
Backup included in Council packet/City Clerk’s Office.
ESTIMATED
Action Taken:
Mayor Gordon adjourned the meeting at
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.
Councilman DiCiccio
Councilman Gates
Councilman Johnson
Councilman Mattox
Councilwoman Neely
Councilman Simplot
Councilwoman Williams
Vice Mayor Nowakowski
Mayor Gordon
[e1]Councilman Johnson joined the meeting right after Council voted for the Consent Agenda. Should this be moved?