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HomeMy WebLinkAbout03/24/2009 Special Council Meeting Minutes~~``~\ ~~ ~A~~ YtmYte <~ k~Kx,u SPECIAL COUNCIL MEETING MINUTES 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, March 24, 2009, at or after 6:00 PM Ed Honea, Mayor Herb Kai, Vice Mayor Russell Clanagan, Council Member Patti Comerford, Council Member Carol McGorray, Council Member Jon Post, Council Member Roxanne Ziegler, Council Member SPECIAL MEETING CALL TO ORDER AND ROLL CALL All Council Members were present PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE APPROVAL OF AGENDA Motion by Council Member McGorray, second by Council Member ComerforaL Passed unanimously. CALL TO THE PUBLIC Brendon Lemieux and Raya Tahan regarding their protest of the Silverbell/Cortaro District Park bid. PRESENTATIONS P 1: Presentation: Relating to Budget; discussion and direction regarding anticipated budget shortfall for fiscal year 2010 and options for budget balancing Presented by Gilbert Davidson. He will be discussing a number of different options that will be presented over the next few months in preparation of the upcoming budget. He has spoken to employees about the challenges faced regarding the budget. He noted that this is a monumental challenge that affects everyone, and that staff is in this together. Management staff is looking at every option to meet the challenges. Employees have ..given. many comments. to management in response _tQ these- meetings. He noted that Marana has been positioned very well compared to other municipalities. Conservative budgeting practices and policy direction from Council over the years has allowed this to happen. ' Mr. Davidson started with budget goals, the 2010 revenue outlook which ErikMontague will be presenting, budget modification options and policy direction from Mayor and Council to management and staff. The FY 2010 budget goals are to maintain critical operations, minimize the impact to personnel, position the town for quick economic recovery and align decisions with the recently adopted strategic plan which is the framework for the budget. He then showed Commerce as the foundation element, followed by heritage, recreation, progress and innovation and community building. Erik Montague gave a brief overview of the 2010 revenue outlook. His concentration was on the general fund, HURF and transportation fund. After 2009 adjustments there is remaining in the general fund for 2010 $2.4 million - a significant change to the general fund. There will be $.4 million remaining for the transportation fund. For HURF, there will be no dollars remaining for 2010. Most of the 2009.adjustmentsfnr the general fund will be permanent adjustments. Gilbert Davidson presented budget modification options on three levels -from least to most impact on personnel and services. He started with Level 1, increased revenues and cost savings; Leve12, operational reductions and cost avoidance; and Level 3, elimination or reduction of services and personnel. Level 1 could include fee schedule adjustments, bed tax rate adjustment, electricity savings, savings by not filling non-critical positions, federal stimulus revenue, transaction privilege tax enforcement and compliance, realigning expenditures with funding, and renegotiating and/or re-bidding contracts. Council Member Clanagan asked the town charges a homeowner $40 to install a hot water heater. Mr. Davidson responded that it's part of the building code. It is a safety purpose. Council Member Clanagan stated that he thought that purpose needed to be better known by the citizens . He then mentioned leases on parks `and recreation property in Continental Ranch -- to perhaps modify or change the current lease agreements. Mr. Davidson noted that there are some great opportunities to re-think the way the town has been doing business. Council Member Clanagan asked what dollar factor could be put to the Level 1 option. Mr. Davidson stated that dollar amounts have not been put to these items. He wanted to put the items out for discussion first. Option 1 won't solve the problems, but it will make a dent in them. Leve12 could include additional reductions in travel and training, suspending vehicle allowances, eliminating non-essential memberships, suspending salary increases, reducing hours of some services such as the swimming pool, scaling back special events. such as Founders' Day, the 4th of July event, the Fall Heritage Festival and the Holiday Tree Lighting, increasing employee. share of costs of benefits: (health care costs will _._ _ ,. .. increase substantially next year, and the town is looking at how much the town covers and how much the employee covers), absorbing outside contract work with existing staff .and non-personnel budget savings. Council Member Ziegler asked about the Governor's Conference, League of Cities and Towns conferences. Could they be suspended this year or could Council use their own funds? .Retreats could beheld at the town facilities instead of out of town or off.-site. Mr. Davidson notedthat he didn't include Council items in this option. Council can certainly address this as they desire. He noted that he anticipated a fall retreat to review the strategic plan. Council Member Comerford noted that perhaps the Parks & Recreation Commission could look at the events and provide recommendations to Council. Mr. Davidson agreed that involving commissions is a very good idea in looking at these issues. Mayor Honea stated that there were substantial cuts in this year's Founders' Day event and it was still a good event. Council. Member Clanagan expressed some concerns regarding Founders' Day such as the caterer. He emphasized that when we have the opportunity to use local Marana businesses, we should do so. He also noted that none of the commissioners were invited to the Mayor's event, and Founders' Day is a good way to include and acknowledge the work that they do for the town. Mr. Davidson acknowledged his comments and stated they would look into his concerns for future events. There is an impact on personnel at this level but are still able to maintain critical operations. Leve13, the elimination or reduction of services and personnel. This is an emergency scenario to allow the town to move forward when the economy improves. Mechanisms will be discussed in more detail later. Employee pay reductions, elimination of services or programs, voluntary or involuntary reduction in operating hours/employee furloughs, employees pay full cost of benefits, use of a portion of the transportation sales tax for general fund use, use of a portion of reserves, organizational restructuring and achieving efficiencies in the management structure would all be featured at this level. Council Member Clanagan commented on staff restructuring, and noted his support and encouragement for whatever difficult measures need to be taken.. Council Member Ziegler thanked Gilbert and his staff for putting so much energy into. this presentation. She wanted to propose something to Council that the police department started last week by foregoing their raises for 2009-2010.. She felt that was a great show of leadership„and sacrifice on their part. She suggested that Council forego their raises in July fora .year and asked if the Council would consider that. Mr. Davidson noted that even the Leve13 impact on budget goals will allow for maintenance of critical operations. Council Member Post asked when dollar amounts would be put on the lists. Mr. Davidson noted that many items require much more analysis and thought. He noted that as much emphasis as possible will be put on Level 1 and Level- 2 options and then Leve13 as necessary. Deb Thalasitis presented on the Level 3 tools: worker recession assignment program (WRAP). She noted the reductions they had already started working on this last year. In July there was some restructuring and then October, December and February more restructuring was done.. She will be preparing what can be achieved at each level and .present to Council. Mitigating he layoffs will be done through the use of existing __ employees where there is more of a workload. Some reassignments could be voluntary or they could be directed. She gave examples using building inspectors. Some of the work could be at a pay rate lower than what they are currently making, but the employee would still have a job. She also talked about early retirement incentives (ERI). There could also be an employeereduction program (ERP) forvoluntary or involuntary reductions (layoffs).. There are some strategies to mitigate options that wouldn't affect retirement benefits in the future. The goal is to have a menu of options for employees to look at if we get. to Leve13. There is a fourth option related to outside agency discretionary funding - a policy for dealing with discretionary funding. She asked for feedback before they move forward. Gilbert Davidson presented a summary of the impacts for each of the levels, noting that his goal is to maximize Levels 1 and 2 as much as possible before elevating to Leve13. The next steps will be prioritizing Leve13 options, getting authorization to develop Level 3 tools, and preparation of the FY 2010 budget based on Level 1 and Leve12 options. Level 3 will only be used to balance the budget. He then went to the Level 3 options slide and noted opportunities for adjustments: personnel, organizational restructuring, using rainy day funds and using a portion of the transportation sales tax. Council Member Post asked about moving pay raises from Leve12 to Level 1. Council Member Ziegler asked for clarification. Mr. Davidson said that the expectation is already out there that there won't be pay raises next year. Council Member Comerford commented that it's really hard to make these decisions without dollar amounts in front of them. It's a great opportunity for us to take a serious look at our organization and see what's necessary and what's not. It's hard for her personally to establish importance without dollar amounts. Mr. Davidson acknowledged her point and said that it's a critical point for everyone. He indicated that the team is asking what is the gap and how do you solve a $2.4 million gap. The finance team is going through all. of the budget recommendations by each department and that will close part of the gap. The items laid out for Level 1 and Leve12 will help it even further. Regarding the reserves, there are opportunities to use a little. bit of the reserves without impacting the town long term. He's weighing the mixture of elements for the long term. Council Member Clanagan noted that the events of the last couple of weeks regarding the Twin Peaks interchange show how important keeping the reserve fund viable. He emphasized his support and trust for Mr. Davidson and his staff in moving the options forward to the overall benefit of the staff and citizens. He also stated his belief in taking any topics off the table until there is resolution. Mr. Davidson noted that as a team, the challenges of dealing with people's lives will be done with caution and keeping the vision and long range goals in mind. He asked if there was any issue with giving authorization for the Level 3 tools. Council Member Ziegler asked about early retirement incentives -how would that be handled? She also reiterated. not discounting the rainy day fund if it provides a means, in a small amount, of not having to move to Leve13 options. Mayor Honea agreed with the comments of both Council Members Clanagan and Ziegler. The greatest asset we have to give to citizens is not the buildings, but the employees: who .work for the town. Vice Mayor Kai asked about generating our own power for a_savings in electrical and other energy savings. Mr. Davidson .thanked Erik. Montague, Suzanne. Machan, Deb Thalasitis, Josh Wright. and Jane Fairall for working on the options. that were presented. He thanked Council for their. time and feedback. ANNOUNCEMENTS/UPDATES PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS Council Member Comerford thanked the Parks & Recreation staff for a good Founders' Day event. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS Mr. Davidson reported on a Twin Peaks update with regard to funding. A meeting has been set with RTA and ADOT on March 30. The town has been able to make sure the money is there. and ready to go. TOWN REPORTS GENERAL ORDER OF BUSINESS CONSENT AGENDA COUNCIL ACTION BOARDS, COMMISSIONS AND COMMITTEES ITEMS FOR DISCUSSION/POSSIBLE ACTION EXECUTIVE SESSIONS Motion by Council Member McGorray, second by Council Member Comerford Passed unanimously. E 1: Executive Session pursuant to A.R.S. §38-431.03 (A)(3), Council may ask for discussion or consultation for legal advice with the Town Attorney concerning any matter listed on this agenda. E 2: Executive Session pursuant to A.R.S. §38-431.03 (A)(4) and (7) to consider the Town's position and instruct its representatives regarding negotiations for the purchase of property rights needed for the Twin Peaks interchange project, CIP number 2001-44, from the parcels. of property generally identified as Pima County Assessor's parcel numbers 226-15-006A, 226-15-006B, 226-15-007A, and 226-15-007B, and to instruct the Town's attorneys in settlement negotiations and contemplated condemnation proceedings relating to the same.:property..rights.. Mr._Cassidy set forth the motionao accept the condemnation settlement of $1.35 million Motion by Council Member Clanagan, second by Council Member Ziegler. Passed unanimously. FUTURE .AGENDA ITEMS Council Member Post asked for. a review and report on the allegations presented. during Call to the Public regarding the bid on-the SilverbelUCortaro District Park. It was noted that this doesn' have to come back as an agenda item, but the Council would like a report from staff. Council Members Clanagan and McGorray concurred. ADJOURNMENT Motion by Council Member McGorray, second by Vice Mayor gai. Passed unanimously. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on March 24, 2009. I further certify that a quorum was present. t ~ ~4 A r. ~ /~~ ~-L ~ -~`l._.. celyn C. Br, ` son, Town Clerk