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HomeMy WebLinkAbout2004-06-01 City Council Special MinutesCITY COUNCIL SPECIAL MEETING JUNE 1,2004 The special meeting of the City Council of the City of Apache Junction, Arizona,was held on June 1,2004,at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Coleman called the meeting to order at 6:00 p.m. ROLL CALL Councilmembers Present:Mayor Coleman Vice Mayor Eck (arrived at 6:57 p.m.) Councilmember Dietz Councilmember Insalaco Councilmember Sippel Councilmember Waldron Staff Present: Others Present: (Councilmember Milkey was absent.) City Manager George Hoffman Assistant City Manager Bryant Powell City Clerk Kathleen Connelly City Attorney Joel Stern Interim Public Safety Director Steve Campbell City Engineer Ron Grittman Parks & Recreation Director Jeff Bell Library Director Pam Loui Finance Director Keith Lewis Public Works Director Doug Dobson Development Services Director Rudy Esquivias Assistant to the City Manager Amy Malloy Business Advocate Roy Hunt Grants Specialist Roger Hacker Finance Manager John White Administrative Secretary Carlena Lawson SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 1 OF 19 Development Services Manager John Petroff Administrative Assistant Janine Solley Human Resources Analyst/Interim Human Resources Director Jackie Trevino Multi -Media Producer Matt McNulty Police Sergeant Bob Nye Police Dispatcher Candi Nilles Presiding Judge David Alexander Recreation Superintendent Liz Langenbach DISCUSSION ON TENTATIVE BUDGET FOR FISCAL YEAR 2004-2005 )City Manager George Hoffman briefed the council on the item.The front summary of the budget describes all the changes that were made.He added additional resources to the overtime budget in the police department in the amount of $65,000. Finance Director Keith Lewis stated he believes they have covered every item,getting the information from the departments.The chief gave the amount on the overtime,development services asked for an additional $15,000 and provided a narrative on that,and they have provided the narrative on the degrees people were getting.There is also information on what will be needed to put the new buildings into operation. Mayor Coleman requested the presentation of the recommendations from the Employee Insurance and Compensation Committee. Development Services Manager John Petroff briefed the council on the item.He commented the committee's purpose was to develop recommendations that reflect employee suggestions on how to utilize $325,000 to address projected increases in medical insurance, dental insurance,fund merit raises or fund cost of living adjustments.The committee was formed by an invitation to become involved,extended to all city employees.The committee was analyzed to insure a balanced cross section of employees.Resource people were provided to help address issues and facilitate with coordination and guidance.The group used consensus to make decisions.If there was not consensus,they voted.Four meetings were used,during which four other issues were developed and forwarded to the city manager for further research.The committee recommended that the employee SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 2 OF 19 contributions for medical and dental insurance be entirely paid for by the city for employees only;the rationale being that the city has historically covered these expenses 100%in the past,it will keep the city competitive in the job market,and i t is a valued employee perk.The committee recommended the employee contribution for dependent coverage be increased.For dental insurance for employee plus one,it be increased from $13.36 to $16.00 per month;the rationale being the annual cost to employees is small being at less than $32.00.The savings will allow the group to put more resources towards a cost of living increase.The percentage rate paid by the employee remains the same.For dental insurance for employee plus two or more,i t be increased from $33.60 to $41.00 per month;the rationale being the annual cost to the employee is small,less than $89 per year allowing group savings and allotting more resources towards a cost of living increase.The percentage rate paid by the employee remains the same.The committee recommended the employee contribution for medical insurance for employee plus dependents be increased from $180.20 to $216.00 per month;the rationale being an attempt to balance a cost of living increase with the cost of family insurance.It will minimize the impact on the average family of the employees working for the city while providing everyone with at least some cost of living adjustment.The percentage rate paid by the employee remains the same.The committee recommended that a merit increase not be considered as an option this year:the rationale is that it does not benefit everyone, it does not adjust the range,and i t does not go into effect at the beginning of the new fiscal year.The committee recommends giving all employees a 1.75 percent cost of living adjustment added to the employee's base salary;the rationale is that i t benefits all employees,will keep the city competitive, helps raise base pay and therefore benefits retirement.This meaningful increase to the employees will help defray the insurance costs increase. Councilmember Sippel commented there is a holiday that falls on a Thursday this year.As the city is only giving a 1.75 increase,he requested they look into giving the employees that Friday off also and make it a four day weekend.He asked if the group had looked into that. Development Services Manager John Petroff stated the group had not. Councilmember Sippel asked if they could talk about it. SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 3 OF 19 City Manager .George Hoffman stated it was not'something.within the committee's purview.He commented it would be greatly appreciated.. There was general discussion as to what holiday it was. City Manager George Hoffman asked staff what they would need to do to make that happen. City Clerk Kathleen Connelly .stated they would -need=to do the same thing that they did for last Christmas.I t would be a-tempprary holiday. City Attorney Joel Stern stated i t wouldte a.temporary holiday for November 12..It would have to go on:anottler. agenda. Councilmember Sippel asked if the other members of the council were alright with that.The consensus was they were. Mayor Coleman asked how many people were on the committee. Development Services Manager John Petroffstated there were 28 members with 4 advisors and two facilitators. The two facilitators,Roger Hacker and Liz Langenbach,kept them on track -. .Mayor Coleman asked if those numbers were already built into the budget. City Manager George Hoffman stated they are. Councilmember Dietz commented they did a great job with what they had to work with.He is aware it was very tough and he thanked everyone who was on the committee. Development Services Manager John Petroff stated it was a team effort. SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 4 OF 19 Councilmember Waldron commented he likesthe:approach as it gives ownership to staff: City Manager George Hoffman stated Roger Hacker and Lizlangenbach facilitated the event and have his sincere thanks.These.arehard issues and what -benefits one person may not benefit another.To think ,about .the larger good is a real challenge.From what he has heard it was a very productive process. Councilmember Dietz commented he wishes they could have done more. Mayor Cbleman closed the discussion and moved on to discussion and possible direction on health insurance participation for 20,Lyearcity emplbyee ,retirees. City Manager George HOffman stated Councilmember Insalaco had inquired about the possibility of Considering the provision of *health insurance for those who, retired.:He has -invited Jim Loeb the health insurance consultant,to address the topicitonight. Mr Jim Loeb gave the council some handouts.He stated-there_are ,two primary issues they are dealing with.One is a long: term policy issue of committing :future city funds to fund retirees. A foundation in California has found that of large companieswith over 200 employees,66t provided retiree health insurance in 1988.As of 2003,i t is only 38%.The reason i t is going downward is because the baby boomers are approaching the retirement ,age and healthcare costs were fairly stable when these policies were put in place.The inflation rate on health care has been in double digits in the teens and the prediction for the next 5 to 10 years is 11%.No one has any answers as to when it might peak.There are more baby bOomers retiring and with technology there is a smaller,work force to support the higher utilizers of the healthcare benefits:The life span is increasing,there is higher technology in medical care,and retiree needs are greater than the:younger employees.By law,the city has to offer COBRA benefits which extend coverage for 18 months from the date of .separation or retirement.In addition,the Arizona State Retirement Plan has a health insurance plan available to all public employee retirees.That plan is out to bid'right now.Thejnitial indications are:that the -rates are favorable; they are notHadvisirog if they are going down until after the bid award has been made.Industry experience indicates that retirees under age 75 incur SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 5 OF 19 about 70%greater health care costs than the average employee,caused by more severe health care issues where the treatment is much more expensive.There are currently 18 employees that have over 20 years of employment.Of these, 5 will be eligible to retire next year.The financial impact on the smaller numbers will not be great on the overall health care costs.As those numbers increase,it will become a larger portion of health care dollars.Projecting the rates,using those 5 employees at their age level and the consumption rate for retirees in general,shows that they would be using 1.67 of the health care premium for employee coverage.The percentage will increase as the number of retired employees increases.If the city grows to 400 employees,with 20 retirees,it will obviously be a smaller percentage.I f there is not a growth rate of employees,it does not keep up with the growth rate of the retirees,consuming a higher percentage of the health care dollars.Assuming an 11%inflation rate on medical care,the city is looking at a doubling of health care costs in under 7 years.With cost of living raises between 1.5% to 2%,and medical care inflation at 11%.the issues facing the committee will be more challenging.The Arizona State Retirement System has a supplement in place.I t is $150 per month for employee and $260 per month for family for those living in Apache Junction and Maricopa County. If that subsidy is applied to the current city rate for those retirees,i f they continue to stay on the city plan,the coverage would be $73 per month. The renewal rate would increase by another $50 to $123,versus a cost of $254 a month with the state retirement.I t boils down to financial resources.I t is also philosophical,as more people are coming back to work because they cannot afford health care coverage.More people are working longer. Councilember Insalaco commented he was looking for information on employees who retire before 65 and do not go out and get another job.He does not know how many employees there would be. He is looking for information on an employee who retires at 58 and cannot get Medicare until he is 62.He would like these people to be able to pay their fair share and still stay on the plan so that they can have something that they can afford.He stated he cannot seem to get that answer. Mr.Jim Loeb stated some groups with a large base of retirees carve out a separate retiree rate and employees can stay on that retirement plan.The elected officials or corporation officials then decide separately how much they will subsidize the retiree coverage.The smaller groups tend to blend that rate into the regular employee rate.Next year the city will be paying $275 per employee per month.If the retirees are using a 70% more consumption rate,than those SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 6 OF 19 working or the city will pick up that consumption rate.Dollarwise,if the five people retired next year,it would be 1.62 of $275 of each employee,or 200 employees,times $275 times 12 months,and then take 1.6%of that,would be the approximate cost.If the city pays 1002 of the employee cost,than that additional cost would come out of the budget.It might mean a little less cost of living adjustment,but it would be spread over the whole group. The employees could contribute a dollar amount,such as $10 per month for the coverage,it would be spread out between the employee base and the city.He cannot give a flat dollar amount. City Manager George Hoffman stated he had talked to Mr.Loeb about being able to apply the 702 amount to the rate and charge the retiree 1.7% times whatever that amount was. Mr.Jim Loeb stated the difficulty is that i t is not an absolutely determined number.The person paying the 1.7%rate could come back and state they were being discriminated against because they have no data within the retirees of the city to base the 1.7% on.He suggested 1.72 from studies that have been done when carving out the utilization of retirees that has become an industry -wide figure.You cannot support an industry -wide figure when i t is applied to the city. City Manager George Hoffman stated it makes sense for large numbers but to say i t is valid for our group size there is no basis. Mr.Jim Loeb stated the group is too small:a sample of 5 is not a large enough sample.Even 200 is not a large enough sample. Councilmember Insalaco stated he would like for the person to be able to stay on the plan but let them pay their way 100%. Mr.Jim Loeb stated if they did that,it would be the $270 versus the $400 rate at state retirement.I t is not known if they will utilize more than $270 dollars a month in health care. Retirees tend to consume 70% more than others. City Manager George Hoffman commented we know that Corvettes cost more to insure than Chevy Luminas.I f SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 7 OF 19 the city is willing to let them pay their cost,does the city charge at the Lumina rate and subsidize the difference of the Corvette.If we charge them the Corvette rate because the sample size is so small,the city has no defense other than that is the industry average i f i t is challenged. Councilmember Dietz asked if it was something they could challenge.This is a benefit that the city would be offering them.He asked if there is a policy that they can just do. City Manager George Hoffman asked if this is something that could be made an elective thing.The city will offer i t at 1.7 times the employee rate so it would be there if they wanted it. City Attorney Joel Stern stated i t would be a voluntary thing on the part of the employee.He does not believe it would be a discrimination issue.It would be a benefit. Councilmember Dietz commented i t would be a policy set forth that would be there for them. City Attorney Joel Stern stated they then could pay for it. Councilmember Insalaco commented i t does not mean that every employee is going to take it.It would be offered if they wanted it. Mr.Jim Loeb stated if they took the 1.7 times the $275 rate for next year,it would come out to $460 per month.The state rate on HMO is about $404:if the rate holds,it would be less expensive on the state plan,depending on the program.The PPO would be less expensive here based on the city's PPO pricing. Mayor Coleman commented the 20 years of service does not necessarily mean all 20 years were here at the city. Mr.Jim Loeb stated it would depend on how they couch what the eligibility is,whether i t is 20 years of service with the city. SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 8 OF 19 Mayor Coleman commented they could set it to where they would have to have 20 years of service with the city. Councilmember.Insalaco stated that is what he was thinking. City Attorney Joel Stern commented they create the benefit and they create the option:I t is an option;i t does not have to be taken. Mayor Coleman commented he is saying i t is no better than what the state retirement is. Mr.Jim. Loeb stated if this was multiplied. at 1.7,the state rate would currently be less.The 1.7 is a figure that could be changed. Councilmember Waldron commented he was .concerned -about discussing only those.emplOyeesthat .have 20 years. There could be some with 30 years or only 18 years. Councilmember Dietz stated they would be -eligible with a minimum amount of 20 years. Councilmember Waldron stated he hoped that if they did it that they would include: those people as well.I t needs to be spelled out. Councilmember.Insalaco stated i t should be a minimum of 20 years. Councilmember Waldron- stated i t appears.to him that the city could be taking aikind:of. gamble on this.If a lot of people take advantage of this,the city could be looking at .some pretty serious financial considerations,dependingion how the base grows. Councilmember Sippel commented he is -saying that the 1.7%could change in five years to 1.9%. Mr.Jim-Loeb:stated i t is an unknown.He has tracked a group-of 200 with the amount actually being 170% SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 9 OF 19 on the people extending the 18 month policy with COBRA.Sometimes you will find the well people will go to:another job and work somewhere else and have health insurance.The ones staying on the plan would be high utilizers.The impact will be minimal ,when starting.The difficulty occurs with the growth in five to ten years from now.,Of the 17 employees with over 20 years in service,some of them are in the early to mid -50's.They do not have their 80 points yet and they will notJor another 5 to 10 years.I t is a number that grows after starting out,small. Councilmember Waldron asked -if he knows why: the first number he gave is down 66%from what he gave in 1988.He asked why they opted out of it. Mr.Jim Loeb Stated it is because of affordability.They cannot afford to do i t anymore.I t is a national survey of: private corporations.More public entities,percentage -wise,will provide retiree coverage than private corporations.If they say 38%are offering retiree health care coverage,it would probably be:fbund that closer to 60%of the public entities in Arizona offer it. Mayor Coleman commented he is not sure if this would be,a benefit they could offer if they will be charging a higher rate than what the state would be charging. Councilmember Sippel commented Councilmember Insalaco was looking for a figure.If it comes out higher, then it comes. out higher. Councilmember Insalaco commented he was just looking for somethingto offer them if they were not going tO work any place else.This is for if they retire from this job,whether i -Lis 22, 25,28 or 30 years and they are not able to get on Medicare.This is so they can pick up those 2 to 3 years. Councilmember Waldron commented he is concerned that they could offer i t now but they could not later and i t would have to be taken away.That is hard to do. Councilmember Sippel stated this would be before Medicare goes through. SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 10 OF 19 Mayor Coleman commented with that as additional he thinks they would be better without it. City Manager George Hoffman stated they had asked if they knew what the additional amount would be.He added i f they had said as long as it can be made revenue neutral to the insurance system for the other employees,then go ahead and do it,the challenge would then be to come up with that number.He is not sure the national average is relevant for our employees.The number is unknown.The statistical folks would have to figure it out.You typically need larger numbers to make valid actuarial projections.The challenge for the council is they have contemplated a scenario tonight where they are not funding merit increases and many of the competitors are,they funded a cost of living adjustment probably close to what the market is doing,and they have looked at a proposal on health insurance.He believes the market is grappling with those kinds of things.They did not fund merit tonight.One of their challenges is to do right by the employees that are already here.Councilmember Insalaco was trying to provide an additional choice for retirees yet keep i t revenue neutral.He thinks i t is a good goal. Councilmember Dietz commented he believes the State of Arizona offers their employees medical benefits after they retire.They may be able to look into that to find an average or cost within the state instead of federally. City Manager George Hoffman stated he believed that was what Jim was talking about in terms of the insurance that is available and the subsidy that is afforded towards that system. Mr.Jim Loeb stated it would be $150 on the state retirement plan,but different cities might have different member requirements.Councilmember Insalaco stated 20 years;there are some employers that may give it at 10 years.Some of them have already blundered and have tremendous liabilities on the way they couched their requirements and eligibility.The state retirement rate would be a good bench mark as i t is comprised of retirees.The cost is from the generation of the claims developed;i t is pure retirees under age 65. Mayor Coleman asked how many of the 17 employees have all 20 years of service with the city. SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 11 OF 19 City Manager George Hoffman stated all of them do. Interim Human Resources Director/Personnel Analyst Jackie Trevino stated there will be 54 people eligible in the next 5 years. Mayor Coleman asked if all 20 years were for the city. Interim Human Resources Director/Personnel Analyst Jackie Trevino stated that is correct. City Manager George Hoffman asked what the status is on the federal thinking on medical savings accounts. Mr.Jim Loeb stated there are some new twists that are called health savings accounts.The federal government has tied them to a $1,000 deductible with a minimum $2,000 deductible for a family,so there is risk -taking.You have to set up your medical plan or have a medical plan option of $1,000 or $2,000 deductible;those employees can then fund in to a health savings account.If they do not use that money to pay for their deductible and co -pays,it then rolls over from year to year into a savings account.They are also thinking of having health care IRA's so that people can pay for some of these costs with pre-tax dollars.The one that no one has been able to tackle yet is how to curtail the inflation on health care prescription drugs. Councilmember Insalaco stated he was not trying to get this in for this year's budget.He wanted i t brought up to find out if there was anything that they could do. Mayor Coleman commented he would like to do something. Councilmember Dietz commented he would like to look into it to see if they can come up with some kind of figure. Mayor Coleman commented he would like to do something for those who have made their career here. SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 12 OF 19 City Manager George Hoffman asked if their goal is to make this cost neutral:they are not looking for one group to subsidize another group.They would like to know that number. Councilmember Insalaco stated that is correct. City Manager George Hoffman stated they could do some research and get an opinion from Joel to see if they can come up with a number that they could charge differently. Mayor Coleman asked if the city could offer health savings accounts. City Manager George Hoffman stated the city is not structured that way.The city has a Section 125 Program where one can set money aside and use it.The money is pre-tax and the employee can get reimbursed for medical expenses.He believed the maximum that could be set aside is $2,500. Finance Director Keith Lewis stated that is correct. Mr.Jim Loeb commented there is now a bill in Congress to allow $500 to be rolled over in the flexible spending account into the future year.Right now you have to use i t or lose it. Mayor Coleman closed the discussion on the item and moved on to a discussion on city membership in Williams Gateway Authority. City Manager George Hoffman stated i t is a tough issue.There are many advantages to joining.The airport will only continue to grow and it will be important to Pinal County from an employment standpoint.Overflights will be important in terms of how we can grow and where.He offered a couple of other thoughts as they contemplate this.I t appears there is going to be movement on the issue of the Maricopa County Flood Control easement.I t has been the primary obstacle to the growth of the city to the south.If it is resolved,there still remains the issue of drainage.There are structures there and they need to determine how much land needs to be reserved behind the structures for water that will back SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 13 OF 19 up from them.They need to determine if those structures are the best way for managing storm water runoff.Some on staff believe there Are some other, more urban models that exist,such as the Reach 11:System,that do not rely on the dam structures as a means of managing the water.The issue will require drainage studies.It will not be resolved by any one entity;it will require a partnership.He believes it will be critical for the city to play a partnership role in the ,resolution of those structures and the drainage issues.It is a.core concern that he sees for realistically opening the land to the south for development.Another issue is the Superstition Vistas Growth Area Study concerning 385 square miles of Pinal County.The mayor and Supervisor Smith have worked very hard to insure the city and county have a seat at that table.One scenario would have the city and county share approximately a third of the cost of the study.The study is contemplated at $750,000.If it!is split;it would_be $125,000 each.He believes the study is very important and that the:city and county need to continue to play a key role in the steering committee level of that study:Williams Gateway is important and great arguments could be made for funding it.However,he encouraged them:to consider the drainage issue and .the study as funding priorities.He believes the drainage issue is critical. Mayor Coleman asked if the drainage and the hydrology study are included in this budget. City Manager George Hoffman stated there is $400,000 in the proposed budget ,for growth issues.As these issues arise; council has those funds with whichto address them.He is not sure when the_hydrolOgy study will occur;but he thinks they Are facing a rapidly changing environment regarding, the easement issue.Within the last 3. weeks they have seen substantial 1movement: Mayor Coleman asked how much money had been set aside. City Manager George, Hoffman stated there:is $400,000 in this year's budget. Mayor COleman commented ,he-thought it would be: importantforAhe.city -to.participatejn the:WilTiams --.Gateway Authority, 'but i t has: been his intent that when they. do :join,that they be: able to commit' long ternto-it HeAculd like to -seeAhe-new city'hali and multi -generational center:online,know exactly what those are going tO -cost SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 14 OF 19 to operate and maintain,before they commit.He believes Mr:Hoffman's priorities are correct;Williams Gateway would fall third to the other two in his opinion. Councilmember Insalaco agreed. Mayor Coleman commented he does not believe that Williams Gateway has been included in the budget. City Manager George Hoffman stated the tentative numbers will include whatever the council wants them to include.He believes i t is a false dichotomy to view Williams Gateway as all or none.They could have representation at each and every public.meeting that they have and that the city avail itself of every opportunity to be informed and to communicate that arises.Bryant Pbwell has 'actively been doing that. Mayor Coleman commented betelieves they should be doing that.He added be still feels bad about being able to. give only a 1.75% cost of living adjustment. City Manager .George, Hoffman added and no -merit.This is very practical:..Gilbert needs as many as 30;police: officers. and some cities have figured out_Jt-is easier to snag. police. officers from: other agencies, than tb grow their own.:-I t is -a time honoret tradition of the larger cities to try ancrrecrult -them -from the smaller cities He does notAhink_Jt is honest .for him to suggest the city is immune. from that;he does not think i t is Mayor Cblemurcommented:they have to wait another -year:andrthen look- at things. CouncilMember Waldron commented he thinks they should work -this year towards maybe joining Williams Gateway next year on a lOng -term basis.He:first thoughtLthey should do it this year,but withlthe rapid:changes with State Land and the Maricopa,County Flood Cbntrol District, they do not*nowall of the ramifications or ,what -is involved.He believes Williams Gatewayls important,but not as important as the growth to the south.He,understands for -fiscal reasons it should notte done this year,but he would like to see i t addressed next year.Hewould like to see the city working towards:that -goal in the meantime. SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 15 OF 19 Councilmember Dietz commented he believes all three are tied together:getting the hydrology study,the flood issues and the control or the say so in the flight patterns,plus the growth issues and everything to the south. Mayor Coleman stated they will realistically benefit from Williams,especially if the city is allowed to expand to the south.The city should put up some of the cost. Councilmember Waldron commented that they would also not want to pull out after a couple of years.They would want to be there for the long haul. Mayor COleman closed the discussion with no further comments. City Clerk Kathleen Connelly stated they can give direction on those three items at this time if council desires. Mayor Coleman commented his,opinion is to go with the committee's recommendation on Letter A and leave B and C alone. Councilmember Dietz agreed. Councilmember Waldron MOVED THAT THE RECOMMENDATIONS OF THE EMPLOYEE INSURANCE AND COMPENSATION COMMITTEE BE ACCEPTED AS PRESENTED AND THAT THE CITY MANAGER BE DIRECTED TO IMPLEMENT THESE RECOMMENDATIONS FOR FISCAL YEAR 2004-05.I FURTHER MOVE THAT THE CITY MANAGER PROCEED WITH RESEARCH OF THE VISION-,DENTAL,AND MEDICAL COVERAGE AS OUTLINED BY THE COMMITTEE IN THE MEMO TO THE CITY MANAGER DATED'MAY 21,2004. There was general discussion about' adding the November 12 temporary holiday. Councilmember Sippel SECONDED THE MOTION. VOTE:Unanimous-. The motion carried. SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 16 OF 19 Council consensus was to take no action on the health care for retirees. Councilmember Waldron MOVED THAT STAFF BE GIVEN THE FOLLOWING DIRECTION REGARDING CITY MEMBERSHIP IN THE WILLIAMS GATEWAY AUTHORITY:THAT WE WORK THIS YEAR TOWARDS LOOKING AT A LONG TERM MEMBERSHIP BEGINNING WITH THE NEXT FISCAL YEAR,TO COMMUNICATE THE SAME THINKING TO WILLIAMS GATEWAY,AND THAT WE MAINTAIN A PRESENCE AT THEIR MEETINGS. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PUBLIC HEARING ON TENTATIVE BUDGET FOR FISCAL YEAR 2004-2005 )Mayor Coleman opened the public hearing on the item.There being no one wishing to speak,he closed the public hearing and moved on to the next item. PROPOSED RESOLUTION NO:04-09, .ADOPTION ,OF TENTATIVE BUDGET FORFISCAL YEAR 2004-2005 AND GIVING NOTICE OF FINAL BUDGET ADOPTION) )Mayor Coleman opened the item to Vice Mayor Eck asked if there were Finance Director Keith Lewis stated Mayor Coleman closed the discussion with no further comments and called for a motion. council discussion. any major revisions to the budget. there was not. Councilmember Dietz MOVED THAT RESOLUTION NO.04-09,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION.ARIZONA,FOR THE ADOPTION OF THE TENTATIVE BUDGET FOR THE SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 17 OF 19 CITY OF APACHE JUNCTION,ARIZONA,FOR FISCAL YEAR 2004-2005,HEREWITH SETTING FORTH THE TENTATIVE ESTIMATES FOR THE MONIES NECESSARY FOR THE PUBLIC EXPENSES OF THE CITY OF APACHE JUNCTION,ARIZONA,FOR THE FISCAL YEAR 2004- 2005 AND GIVING NOTICE OF THE TIME AND PLACE FOR HEARING TAXPAYERS FOR THE ADOPTION OF THE FINAL BUDGET,BE APPROVED. I FURTHER MOVE THAT THE PUBLIC HEARING FOR FINAL BUDGET ADOPTION BE HELD ON TUESDAY,JUNE 15,2004,BEGINNING AT 6:00 P.M.IN THE CITY COUNCIL CHAMBERS. Councilmember Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. City Manager George Hoffman thanked Keith Lewis,John White,Bryant Powell,and Amy Malloy -for bringing the budget process forward to the council sooner than has been done for many years. ADJOURNMENT )-Mayor Coleman adjourned the meeting at 7:02 p.m. ACCEPTED THIS 6TH DAY OF JULY ,2004,BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 6TH DAY OF JULY ,2004. DOUGLAS COLVMAN Mayor SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 18 OF 19 ATTEST: KATHLEEN CONNELLY City Clerk CITY COUNCIL MINUTES CERTIFICATION I .hereby. certify that the foregoing minutes are a true,and correct copy of the minutes of the special meeting • of the City Council of the:City:of Apache Junction_Arizona held on the 1st day of June,2004.I furthercertify that, the meeting:was .duly•calTed and:held:and -that a quorum was present. Dated this llth day of June,2004. KATHLEEN CONNELLY City Clerk SPECIAL MEETING OF THE CITY COUNCIL JUNE 1,2004 PAGE 19 OF 19