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1. |
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Call to Order
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Mayor Evans called the Budget Retreat/Special Meeting of April 26-27, 2017, to order at 9:00 a.m. |
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2. |
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Roll Call
NOTE: One or more Councilmembers may be in attendance telephonically or by other technological means.
PRESENT:
MAYOR EVANS
VICE MAYOR WHELAN
COUNCILMEMBER BAROTZ
COUNCILMEMBER MCCARTHY
COUNCILMEMBER ODEGAARD
COUNCILMEMBER OVERTON
COUNCILMEMBER PUTZOVA |
ABSENT:
NONE
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Others present: City Manager Josh Copley and City Attorney Sterling Solomon. |
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3. |
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City Council FY 2018 Budget Retreat
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Mr. Copley began the Retreat with a statement that the proposed budget does not have extra money at the end of it, so to accomplish additional capacity is to reduce other areas. He then began a PowerPoint presentation:
APPROACH FOR FY2018 BUDGET
BUDGET OUTLOOK
Mr. Copley asked Council what their expectations were for the Retreat.
Councilmember Putzova said that it was important to reflect on how the policy goals tie to the budget and are reflected in the organizational structure.
Mr. Copley noted that this is the final meeting for Council to provide input to ensure that the final budget is meeting the objectives before it comes back before them in a public hearing setting.
Vice Mayor Whelan said that her hope today is that the Council comes together and offers staff clear direction and approval of those things that they have worked hard on.
Management Services Director Rick Tadder began the presentation:
BUDGET OUTLOOK REVENUES - GENERAL FUND
BUDGETED NEW REVENUES
USER FEES
Brief discussion was held on the user fee increases, as directed by Council in February. Mr. Copley said that if the fee changes are not approved, they will need to remove expenditures. He said that it is different with property tax; the proposed budget has not incorporated an increase in property tax.
Councilmember Putzova asked why there was a discrepancy between the total new revenue allocated of $4.5 million in the transmittal letter and the $10.7 million in the budget. Mr. Tadder explained that the $10.7 million was citywide; the $4.5 million was General Fund only.
Councilmember Putzova asked for a one-page sheet showing all of the new revenues and how they are going to spend it. Mr. Tadder referred Council to Page 453 of the Budget Book, noting that they do not normally show the information in that manner. They usually look at revenues in a fund.
BUDGET OUTLOOK
EXPENDITURES - GENERAL FUND
FIXED COSTS
It was noted that the Pension Costs go from $7.4 million to $8.6 million in FY18. Councilmember Overton asked if they continue to put funds into the unfunded amount; Ms. Suda replied that they do.
Deputy City Manager Barbara Goodrich said that they accumulate new liability as quickly as they pay it off. They are still paying the required rate and are on track to have it paid off in 18-20 years, but they are not advancing at this time.
BUDGET OUTLOOK
REQUESTS FROM DIVISIONS
Ms. Suda noted that there were 62 positions requested overall. Mr. Copley said that the best people to tell them those needs are the employees. The employees assess the need, the capacity relative to the work program and submit the RSL (Revised Service Level) up through their chain of command. Every RSL must be justified with a nexus to a Council goal or objective, or if not, an ongoing City service that was not addressed that this furthers. The Budget Team goes through department review. They say no to about half of what is requested, but nothing that was asked for was frivolous.
EXPENDITURES - ALL FUNDS
BUDGET OUTLOOK - OVERALL PERSONNEL
BUDGET PRIORITIES AND PROCESS AND NEW INVESTMENTS
REVIEW OF NEW INVESTMENTS BY COUNCIL GOALS
Deputy City Manager Shane Dille then continued the presentation:
MATRIX
Mr. Dille said that last December staff presented its annual report to Council. It was an eye-opening process in that the document consisted of 20 pages. He said that it represented staff's efforts, but they all agreed that the document consisted of a lot of activity in serving the community's needs, but they had a hard time defining success.
With that in mind they brought forth a proposed format for addressing Council goals and related objectives. While there was overall support by Council for the formatting, concern was also given to not making more work for staff. It was suggested that staff and Council work together to make sure everyone's needs are met.
Mr. Copley said that this tool is extremely useful to staff. It represents the transmission of policy direction from Council and how it converts into administrative action for employees.
A break was held from 10:20 a.m. to 10:42 a.m. |
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At this time, staff members reviewed various Council Goals and related objectives, with Economic Vitality Director Heidi Hansen continuing the presentation:
ECONOMIC DEVELOPMENT
Grow and Strengthen a More Equitable and Resilient Economy
Objectives:
Improve the small business experience when going through the City process
Support and enhance services to all businesses in the community
Market Parks and Recreation as accessible for all regardless of income
Increase eco and historic tourism in Flagstaff
Other items:
Accelerator Contingency
Parking District Software and Building Lease
Airport Marketing Efforts
A break was held from 12:10 p.m. to 12:17 p.m. at which time Housing Director Sarah Darr continued the presentation:
AFFORDABLE HOUSING
Support development and increase the inventory of public and private affordable housing for renters and home owners throughout the community
Objectives:
Pursue financing strategies for affordable housing to create additional rental and ownership
housing opportunities.
Increase the number of affordable rental units.
Improve the distribution of affordable rental units throughout the community and
neighborhood.
Establish an Employer Assisted Housing Program
Discussion was held on a potential ballot question in 2018 regarding housing and various issues related to housing needs.
City Prosecutor Bret Harris continued the presentation:
SOCIAL JUSTICE
Advance social justice in our community
Objectives:
Strengthen and repair relationships with the indigenous and immigrant communities.
Other items:
Boys & Girls Club Service Partner Contract
Annual Meeting with Tribal Nations and Mayors Summit
Native Youth Service Academy Pilot Program at Picture Canyon
Community Development Director Mark Landsiedel then continued the presentation:
TRANSPORTATION AND OTHER PUBLIC INFRASTRUCTURE
Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system
Objectives:
Complete the Intergovernmental Agreement with the County for a new courthouse and begin
the design process.
Complete the Public Works Yard in the next two years
Replace aging infrastructure
Support the airport with needed infrastructure upgrades in order to enhance our tenant and
patron experience as well as additional airline attraction.
Support the Regional Transportation Plan
A break was held from 1:48 p.m. to 1:56 p.m.
Planning Director Dan Folke then continued the presentation: |
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BUILDING AND ZONING/REGIONAL PLAN
Revise the Zoning Code to remove ambiguities and ensure it is consistent with community values and the Regional Plan.
Objectives:
Complete and update neighborhood plans specific to Housing Urban Development
consolidated plan and target neighborhoods within that plan.
Align building codes, zoning codes and regional plan
Public Works Director Andy Bertelsen continued the presentation:
CLIMATE CHANGE
Take meaningful climate change action
Objectives:
Become a 100% renewable energy city as an organization and a community
Develop and implement a climate action plan
Water Resources Manager Erin Young continued the presentation:
WATER CONSERVATION
Become a national leader in water conservation in all sectors
Objectives:
Enhance water conservation efforts
Develop a sustainable water budget
ENVIRONMENTAL AND NATURAL RESOURCES
Actively manage and protect all environmental and natural resources
Objectives:
Aggressively support efforts for forest health
Further develop sustainability and waste removal policies and programs
Preserve natural resources
A break was held from 3:20 p.m. to 3:29 p.m.
Deputy Fire Chief Mark Wilson continued the presentation:
PERSONNEL
Attract and Retain Quality Staff
Objectives:
Invest in employee training
Enhance tuition reimbursement opportunities throughout the organization
Ensure adequate Public Safety staffing levels
Provide parking incentives for employees
Discussion was held on the City Manager's proposal to adopt a 7% tax levy/revenue increase in FY2018 and an additional 7% tax levy/revenue increase in FY2019 to provide funding to maintain the 12 Public Safety positions after the grant period. Majority of Council supported this proposal.
Other Items:
Retirement Payouts (16 employees)
Additional Utility Staff (4 FTEs)
Additional Library Staff (Partial contingency on additional funding)
Fire Overtime
Additional Fleet Staff (2 FTEs)
Human Resources Director Shannon Anderson continued the presentation:
COMPENSATION AND BENEFITS
Compensation Trends
Benefit Trends
Retention Trends
Compensation
Benefit Renewals
Future Retirement Costs
Discussion was held on different benefits that could be provided, other than pay, such as additional vacation time. Staff was asked to place this item on the parking lot. |
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4. |
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Adjournment
The April 26, 2017, portion of the Budget Retreat/Special Council Meeting adjourned at 5:39 p.m.
SPECIAL COUNCIL MEETING
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1. |
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Call to Order
Mayor Evans called the Special Meeting of April 27, 2017, to order at 9:00 a.m. All Councilmembers were present. |
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2. |
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Consideration and Approval of Construction Manager at Risk Construction Services Agreement (CMAR): CMAR 2017 Street Maintenance Project - GMP #2 - Chip Seal.
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Senior Procurement Specialist Patrick Brown provided a PowerPoint presentation that covered the following:
TERMINOLOGY
CONTRACT ALLOWANCE
CHANGE ORDER AUTHORITY
CONSTRUCTION MANAGER AT RISK – CONTRACTOR’S CONTINGENCY
CONSTRUCTION MANAGER AT RISK – OWNER’S CONTINGENCY |
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Moved by Councilmember Charlie Odegaard, seconded by Councilmember Eva Putzova to approve the Construction Manager at Risk Construction Services Agreement with C and E Paving and Grading, LLC in an amount not to exceed $1,603,036.00 for Guaranteed Maximum Price (GMP) #2 - Chip Seal; approve Change Order Authority to the City Manager in the amount of $160,303.00 (10% for GMP #2) to cover potential cost associated with unanticipated or additional items of work; and authorize the City Manager to execute the necessary documents.
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Vote: 6 - 1 |
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NAY:
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Vice Mayor Jamie Whelan
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Councilmember Putzova left the meeting at 9:30 a.m. |
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3. |
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Consideration and Approval of Construction Manager at Risk (CMAR) Construction Services Agreement: 2017 Street Maintenance Project - GMP #1 - Overlay.
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Vice Mayor Whelan asked if items 2 and 3 are for the same project but different phases. Public Works Project Manager Adam Miele stated that it is the same contractor but not the same project; he explained that item 2 is for chip sealing certain streets and item 3 is for the overlay of certain streets.
Vice Mayor Whelan expressed frustration with the City's policies related to contingencies and change order allowances. Mr. Copley stated that staff is bringing the Procurement Manual to Council and there will be an opportunity for Council to revisit the policies. |
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Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to approve the Construction Manager at Risk Construction Services Agreement with C and E Paving and Grading, LLC, in an amount not to exceed $2,695,631.29 for Guaranteed Maximum Price (GMP) #1 - Overlay projects approve Change Order Authority to the City Manager in the amount of $269,563.00 (10% for GMP #1) to cover potential cost associated with unanticipated or additional items of work; and authorize the City Manager to execute the necessary documents.
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Vote: 6 - 0 |
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Consideration and Approval of Construction Manager at Risk (CMAR) Construction Services Agreement: Phase 1 Utility Improvements of the Road Repair and Street Safety Program (RR&SS) Bundle #2 (Beaver/Dale) project to be awarded to Eagle Mountain Construction Inc. in the amount of $1,969,771.19.
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Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to approve the Construction Manager at Risk Construction Services Agreement with Eagle Mountain Construction Inc. for Contract Price of $1,969,771.19 and a contract time of 488 calendar days and authorize the City Manager to execute the necessary documents.
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Vote: 6 - 0 |
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5. |
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Consideration and Approval of Contract: Approve the Construction Contract with McDonald Brothers Construction in the amount of $1,637,898.50 for the Mike's Pike Water and Sewer Improvement Project (Project).
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Moved by Vice Mayor Jamie Whelan, seconded by Mayor Coral J. Evans to approve the construction contract with McDonald Brothers Construction in the amount of $1,637,898.50 (includes construction total of $1,547,898.50 and contract allowance of $90,000.00), and a contract time of 180 calendar days; approve Change Order Authority to the City Manager in the amount of $154,789.85 (10% of the contract amount, less allowance of $90,000.00); and authorize the City Manager to execute the necessary documents.
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Vote: 6 - 0 |
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The Special Meeting of April 27, 2017, adjourned at 9:44 a..m. at which time Mayor Evans called the Budget Retreat to order.
Interim Communications Manager Meg Roederer continued the Budget presentation:
COMMUNITY OUTREACH
Enhance Public Transparency and Accessibility
Objectives:
Build and enhance neighborhood services for the City
Develop a social media management plan
Define the City's public communications program
Other Items:
Labor Standards Manager and Program
Neighborhood Liaison
Mr. Tadder then continued the presentation:
OTHER NEW INVESTMENTS
A break was held from 10:25 a.m. to 10:37 a.m., at which time Councilmember Putzova returned.
Capital Program Engineer Bret Petersen continued the presentation:
CAPITAL IMPROVEMENT PROGRAM OVERVIEW
EIGHT PROGRAM CATEGORIES
FY17 ESTIMATE
FY18 BUDGET
FY19-22 PROJECTED
CATEGORY TOTAL
TOTAL PLAN SUMMARY
GENERAL GOVERNMENT
STREETS/TRANSPORTATION
STREETS/TRANSPORTATION - LOCKETT CORRIDOR STUDY
Mayor Evans left the meeting at 11:14 a.m.
FUTS FUNDS
BBB FUNDS
WATER/WASTEWATER/RECLAIMED WATER
STORMWATER UTILITY
AIRPORT
SOLID WASTE/SEMS
STORMWATER FEE INCREASE
A break was held from 12:07 p.m. to 12:35 p.m. at which time the Mayor had returned.
COUNCIL DISCUSSION AND PARKING LOT ITEMS
Mr. Copley then began review of the Parking Lot items and said that he also wanted to capture any requests for further information.
FACTS
Mr. Copley said that they would like to capture the $25,000 one-time general fund money. They do have some capacity in BBB Recreation and could use those dollars to fund that, and put the $25,000 for something else.
He said that the other thing is the Community Housing Assistance Program (CHAP). They were able to find $200,000 in the repaid CHAP loans, which is the purpose of those loans. Vice Mayor Whelan said that her concern about taking the CHAP money from CHAP is that it would be her hope to grow that program and she would much rather see new money come into that program.
With regard to health insurance subsidy, Mr. Copley said that he offered to draw down the $650,000 over two years rather than three and they could increase the subsidy for families. He said that they will have to reconsider how they will further address that in the future, as premiums will go nowhere but up. Majority of Council was in favor of that plan.
Mr. Copley said that many of the things are big dollars and there are not big dollars available. If Council wanted to have a discussion about the Fund Balance Policy, possibly reducing it from 20% to 19% it would free up about half a million dollars in the General Fund. The caution is that it is a rainy day fund and there are impacts with the bond ratings. They have had discussions about cuts in service. If there were to be additional programs, they have to consider cutting other programs.
Vice Mayor Whelan asked when the City went to the 20% policy. Mr. Tadder said that during the recession they dropped to 12% and their policy was 15%. It took them a long time to recover that and then go higher. They have been holding at 20% since 2015 or 2016. He said that it was a fiscal policy. There was no recession built into their five-year plan. After further discussion a majority of Council was not interested in reducing the Fund Balance.
After brief discussion, it was suggested that they start at the top of the list and move down.
FACTS
Majority supported using BBB allocation of $25,000
AFFORDABLE HOUSING
Majority supported moving forward with amount included in proposed budget. With regard to CHAP, majority supported using the funds from previous revolving, redevelopment and proforma planning and put it toward this goal.
SOCIAL JUSTICE AND HOMELESSNESS
Take the $25,000 freed up from FACTS and offer it up to receive ideas on how to advance this goal.
AQUAPLEX
Staff was directed to move this item out of facilities into climate change.
CLIMATE ACTION PLAN
Majority agreed to the $62,000 budgeted
WINDBLOWN LITTER
Majority supported leaving it as is.
EMPLOYEE PARKING
Majority supported leaving it as is.
HEALTH INSURANCE SUBSIDY
Majority supported a two-year draw down.
MAYOR TRAVEL BUDGET
Staff will research further and provide information to Council.
CLEAN TEAM AMBASSADORS
Staff will look into this further.
COMMUNITY BREAKFAST
Staff will look at different ideas and possibly broaden the title. |
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6. |
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Public Participation
Public Participation enables the public to address the Council about an item that is not on the agenda. Comments relating to items that are on the agenda will be taken at the time that the item is discussed. If you wish to address the Council at this meeting, please complete a comment card and submit it to the recording clerk as soon as possible. Your name will be called when it is your turn to speak. You may address the Council up to three times throughout the meeting, including comments made during Public Participation. Please limit your remarks to three minutes per item to allow everyone an opportunity to speak. At the discretion of the Chair, ten or more persons present at the meeting and wishing to speak may appoint a representative who may have no more than fifteen minutes to speak.
None |
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7. |
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Informational Items and Reports from Council and Staff, Future Agenda Item Requests
None |
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8. |
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Adjournment |
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After final comments were made by Council and staff, the Budget Retreat of April 27, 2017, adjourned at 2:42 p.m. |