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HomeMy WebLinkAbout2003-07-01 City Council Special MinutesCITY COUNCIL SPECIAL MEETING JULY 1,2003 The special meeting of the City Council of the City of Apache Junction, Arizona,was held on July 1,2003,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 Councilmember Dietz Councilmember Insalaco Councilmember Milkey Council member Sippel Councilmember Waldron Staff Present:City Manager George Hoffman Interim Assistant City Manager/City Clerk Kathleen Connelly City Attorney Joel Stern Parks & Recreation Director Jeff Bell Library Director Pam Loui Finance Director Keith Lewis Public Works Director Doug Dobson Interim Dev.Svcs.Director Rudy Esquivias Interim Assistant City Manager/Assistant to the City Manager Bryant Powell Others Present:Human Resources Director Sue Stalcup Finance Manager John White SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 1 OF 14 DISCUSSION ON TENTATIVE BUDGET FOR FISCAL YEAR 2003-2004 )City Manager George Hoffman briefed the council on the item.He stated he has some updates from the last time they met on the budget.The Chief has recommended that,instead of having two 2% checks,that there be one 4% check and that i t be issued sooner in the fiscal year rather than later.He agrees with the idea.He feels i f it makes a difference to them,if they prefer that,it works for him.I t is doable and a draft motion has been included for their consideration.It would be option 2.Another item is a proposal to put an additional $2,000,000 into the public works budget to offset revenue that the city currently does not have,and would have to borrow to proceed,with the objective of providing the council with the flexibility should they want to develop Auto Center Drive or bring water under the freeway or other infrastructure projects for economic development intent.This would give them the expenditure capacity to do that. I t has already been included in the most recent budget sheets.Parks and Recreation Director Jeff Bell received word from Rayna that Main Street was not really looking for much in the way of OktoberFest.They are going to have the AJ Rangers provide security.No budgetary allocation is recommended.A councilmember communicated interest in differentiating for those over range 60 a pay increase based on their tenure in their position versus time with the organization.The pay study group has also had discussions on time in the position.He will let the councilmember talk about that.The last item would be the cost of the implementation of the compensation as i t is currently forecast. Finance Director Keith Lewis stated they had budgeted $844.000 in total for both the 4% and the class/comp.They have come in with $815,000;we are under the budgeted amount by $28,000. Vice Mayor Eck asked how much additional is being taken out for the retirement system. Finance Director Keith Lewis stated the retirement system costs us in total $227,000 w employees that are not sworn officers.That was already in the_bUdget. of the $1.3 million. SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 2 OF 14 Vice Mayor Eck stated that is part City Manager George Hoffman stated the classification/compensation came in a little higher with the 4%being around $350,000. Finance Director Keith Lewis stated it came in at $342.000.However,they must realize that Sue is working with actual employees on the payroll,he is working with what is in the budget.He has additional employees that will be hired. City Manager George Hoffman commented Sue stated she also did not have the benefit component factored in. The benefit amount goes up somewhat with higher pay. Finance Director Keith Lewis stated they are still under the budget that was shown to them on June 23. Vice Mayor Eck commented he was the one who mentioned something about the employees with the range 60 because we use a different formula below that and he asked that this be looked into to see what the cost would be to go ahead and have those employees with over 11 years completed get something more. City Manager George Hoffman stated it was 11 and over;he believed that was the dividing point for those below 60. Vice Mayor Eck asked Sue Stalcup how many employees this affected and what the dollar amount would be. Human Resources Director Sue Stalcup stated there are 19 employees in the 60 range and above.Using the 6%for those employees who have completed 11 years in their position,it would add approximately $7,500 to the amount that they would spend. Vice Mayor Eck stated he believes they would be treating those employees a little bit fairer,on the same level as the ones that were under the range,as we did give them something for their time served. SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 3 OF 14 Human Resources Director Sue Stalcup stated it would mimic to some degree what was happening to the other employees below range 60. Vice Mayor Eck commented there are only 4 or 5 employees with 20 years of service in their position.The time served should mean something to us.He thinks it would be a good thing to do for $7,500. Human Resources Director Sue Stalcup stated she did not count the number of employees,but she believes it to be only 5 or 6.The important item is the years in position. Vice Mayor Eck commented he was first thinking about years served,not in position,but when he had to think about it,he agreed. Human Resources Director Sue Stalcup stated i t also comes from discussions with employees on the class/comp team as well as other employees who were very concerned about the fact that although i t is not a large number,there are employees who move within the city from position to position.I t is perfectly acceptable, •but their issue was that if,for example,someone had been a police officer for 4 years and someone else has worked at something else and has become a police officer 6 months ago yet has worked for the city 8 years,they should not get credit for being a police officer for 8 years.They should get credit for being a police officer for 6 months.They feel that the time in position should control that. Vice Mayor Eck agreed.He believes this will complete the job study to the best of their abilities.He commented 4% used to be equivalent to approximately $100,000.He asked what i t is now equivalent to. There was general discussion as to •what the 4%is equivalent to.I t is believed to be under $120,000. Finance Director Keith Lewis stated this was also thrown out of whack because of the change in state retirement as i t is going up 3.2%. SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 4 OF 14 to the employee or to the city. i t is to both. total. that is correct. were paying before. Vice Mayor Eck asked if the 3.2%is Finance Director Keith Lewis stated Vice Mayor Eck asked if it is 6.4% Finance Director Keith Lewis stated Vice Mayor Eck asked how much they Finance Director Keith Lewis stated they were at 2.49 before,and they are going to 5.7.That is for the city. The police department went up,but the employee does not get hit with that: only the city gets hit with the raise in retirement for officers.They stay at 7.65 and they have stayed there for years.The other employees'retirement contributions have fluctuated. City Manager George Hoffman asked who would be getting the 4%. Finance Director Keith Lewis stated anyone that is on board July 1 will receive the 4%. City Manager George Hoffman asked what would happen if they know they are leaving. Finance Director Keith Lewis stated he did not know. , .Human Resources Director Sue Stalcup commented they have to be in a classified position,not .seasonal,and they have to be active employees on payroll: Vice Mayor Eck asked what about those who had been hired a month ago. SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 5 OF 14 Human Resources Director Sue Stalcup stated they would get the 4%,and that is because they would not get a raise this year. 'Vice',MayOr:Eck asked what happens i f.. they are on probation and they' only Make it.August or September. City Manager George Hoffman stated they would still get their 4%and that would be the tiniest fraction of the budgetary payroll. Vice Mayor Eck commented it would be unfortunate for the city. Human Resources Director Sue Stalcup stated they typically do not have a lot of employees who do not make it off of probation. Councilmember Dietz asked what happens if the employee leaves a month from today,since this is paid out in September. City Manager George Hoffman stated they should have stayed until September. Human Resources Director Sue Stalcup stated you have to be here to get it.You have to be on payroll on July 1 to be eligible and then you have to be here to get the check. Finance Director Keith Lewis asked if you have to be physically working. Human Resources Director Sue Stalcup stated they were looking at i t as someone who is actively at work and not off on some leave that,at the end of that leave,they are gone. Councilmember Dietz commented they would not get i t if they were off on medical leave or something like that. SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 6 OF 14 Human Resources Director Sue Stalcup stated that is correct.If their intention is to return to work,yes;i f their intention is not to return to -work,no. City Attorney Joel Stern stated as long as they are on active payroll,he does not believe they can say no. Councilmember Dietz commented that they could be on short term disability. City Attorney Joel Stern stated they cannot say no to the 4%if they are on active payroll. Councilmember Sippel asked if that would be minute on the budget. City Attorney Joel Stern stated i t would be very minute. City Manager George Hoffman stated i t is more in it meeting expectations than in it being a budget matter. would be minute on the budget. would be very minute. Human Resources Director Sue Stalcup stated the council can put parameters around this any way that they want to, but they need to let staff know how they want it controlled. Mayor Coleman stated the city attorney just told them that they would do it. There was general discussion on what was needed for the motion. City Clerk Kathleen Connelly commented they had talked about the advertising line item in marketing and communications at the last work session.There was discussion on whether i t should be different or the same. had been asked if he needed all of that. SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 7 OF 14 sCouncilmember Sippel asked if Pat City Clerk Kathleen Connelly stated he said he could use i t if it were there. Finance Director Keith Lewis stated it was $18,000 before, • he asked for $18,000 anliwa'S''given $10,000. 'There was general discussion on the .advertising line item.There was general consensus_to leave it and to come to the council for approval to take it out of contingency if he needs more. Councilmember Dietz commented Oktoberfest does not need to be put into the budget since they are basically only using equipment from the city. Vice Mayor Eck thanked staff and added he appreciated the creativeness on this challenging budget.He commended George on the 4%,especially after doing the job study. Mayor Coleman asked Councilmember Sippel if it would be okay to leave it at $10,000 on the one item and take it out of contingency if it becomes needed. Councilmember Sippel stated he thought it would be nice to promote the city and that would be a good way to allow him to do that.Everyone else is cutting positions and slashing budgets and we are not.It would be a reason to promote the city.However,he agreed with the mayor. Mayor Coleman closed the item with no further discussion. PUBLIC HEARING:TENTATIVE BUDGET FOR FISCAL YEAR 2003-2004 )Mayor Coleman opened the public hearing on the item. Mr.Scott McBean,710 S.Lawson Drive #3,Apache Junction,addressed the council.He commented he was getting into politics and stated they needed a maximum eight -five-star notebook.He stated they need the minutes from it.He added he had talked to Parks & SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 8 OF 14 Recreation about teaching computer classes,and stated there is something wrong with the police department.He suggested sending the top heavy administrators home and cutting the red tape. Mr.Louis Babin,2191 S.Belair Road,Apache Junction,addressed the council.He asked why the fringe benefits are not itemized as they comprise a pretty substantial figure. Mayor Coleman closed the hearing with no one else wishing to speak.He asked Kathy Connelly where the budget would be available for public perusal. City Clerk Kathleen Connelly stated Keith has some with him. Mayor Coleman asked if they would have one at the library. City Clerk Kathleen Connelly stated it would be available there after the final budget is available. Keith has some with him. have one at the library. Mayor Coleman added they will be trying to post i t online for the first time. Finance Director Keith Lewis stated it would be the schedules they have in front of them. Mayor Coleman asked Keith to talk about the fringe benefits.He thought he was going to ask why it went up so much,and he is aware that is because of state retirement going up so much. •Finance Director Keith Lewis stated they are not itemized because of convenience.Years ago they were itemized but people suggested he combine them,so he did. Mayor Coleman asked him to tell them what is included in the fringe benefits. Finance Director Keith Lewis stated the FICA is 7.65%,which includes social security and medicare;retirement for SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 9 OF 14 regular city employees is 5.7% this year;the city's portion of sworn officers'retirement is 9.33%;workmen's compensation varies depending on the positions;health insurance and life insurance for the employee,with the city paying all of the employees'health insurance and life insurance and the employee paying $180.20 per month of the dependent tare:life insurance is paid by the city for the dependents-,amounting to $7.20 per year;and dental insurance is also a benefit. Councilmember Sippel asked if there was an increase in dental insurance this year. Finance Director Keith Lewis stated there was for health insurance,but the reserve was used so there was no increase in the rates.There was in actuality a small decrease,but we now have no reserve. City Manager George Hoffman stated there is $160,000 that will be added to the base next year when this is opened up for bid. Finance Director Keith Lewis stated there was a small increase in the dental insurance. pagers are considered a fringe benefit. Mayor Coleman asked if the council Finance Director Keith Lewis stated they are not included in these figures.They are part of the operating budget.Contract employees have some of the deferred compensation paid by the city. Mayor Coleman stated that would be the city manager,city attorney and the city magistrate. Finance Director Keith Lewis stated pagers and phones are all in the operating expenses. manager car allowance is included. SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 10 OF 14 Mayor Coleman asked if the city Finance.Director Keith Lewis stated that is under car allowance.It could be classed as a fringe benefit,but for budget purposes i t is a separate line item. Mayor Coleman closed the item with no further discussion. CONSIDERATION OF PROPOSED RESOLUTION NO. 03-15,ADOPTION OF TENTATIVE BUDGET FOR FISCAL YEAR 2003-2004 AND GIVING NOTICE OF FINAL BUDGET ADOPTION )Mayor Coleman called for any further discussion on the item.There being no further discussion,he called for a motion. Councilmember Dietz MOVED THAT RESOLUTION NO.03-15,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,FOR THE ADOPTION OF THE TENTATIVE BUDGET FOR THE CITY OF APACHE JUNCTION,ARIZONA,FOR FISCAL YEAR 2003-2004,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 2003-2004 AND GIVING NOTICE OF THE TIME AND PLACE FOR HEARING TAXPAYERS FOR THE ADOPTION OF THE BUDGET BE APPROVED. I FURTHER MOVE THAT THE PUBLIC HEARING FOR FINAL BUDGET ADOPTION BE HELD ON JULY 15,2003,AT 6:00 P.M.IN THE CITY COUNCIL CHAMBERS. I FURTHER MOVE THAT WE AUTHORIZE STAFF TO IMPLEMENT THE FOLLOWING PLAN WITH REGARD TO MERIT PAY FOR ACTIVE,CLASSIFIED EMPLOYEES FOR FISCAL YEAR 2003-04: WITH OPTION 2,THAT SUCH ACTIVE,CLASSIFIED EMPLOYEE RECEIVE THE EQUIVALENT OF 4% OF BASE PAY PAID IN A SEPARATE PAYCHECK USING THE FOLLOWING METHODOLOGY: MERIT PAYCHECK TO BE PAID IN SEPTEMBER 2003.THE EMPLOYEE MUST BE ON PAYROLL AS AN ACTIVE,CLASSIFIED EMPLOYEE ON JULY 1,2003,IN ORDER TO RECEIVE THIS PAYCHECK.THE MERIT PAYMENT FOR FY 2003-2004 WILL NOT BE ADDED TO THE EMPLOYEE'S BASE PAY. AND I FURTHER MOVE THAT ANY ACTIVE,CLASSIFIED EMPLOYEE WHO HAS COMPLETED 11 YEARS IN THE POSITION RECEIVE THE EQUIVALENT OF 6% OF BASE PAY,PAID IN A SEPARATE PAYCHECK,USING THE FOLLOWING METHODOLOGY:MERIT PAYCHECKS TO BE SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 11 OF 14 PAID IN SEPTEMBER 2003.THE EMPLOYEE MUST BE ON PAYROLL AS AN ACTIVE, CLASSIFIED EMPLOYEE ON JULY 1,2003,IN ORDER TO RECEIVE THIS CHECK. There was general discussion on the part of the motion regarding the 6%increase.It was determined it would go to base pay and it would not be one separate check. Councilmember Dietz MOVED TO DELETE HIS REFERENCE TO THE SEPARATE CHECK AND THAT THE 6% WILL BE INCLUDED IN THEIR BASE PAY. Finance Director Keith Lewis stated it would be included in their base pay and would be payable as a normal paycheck every two weeks. There was again general discussion on the motion. Councilmember Dietz commented he would start from Option 2 again,as that is where the confusion resulted.He MOVED THAT OPTION #2,THAT SUCH ACTIVE,CLASSIFIED EMPLOYEE RECEIVE THE EQUIVALENT OF 4% OF BASE PAY PAID IN A SEPARATE PAYCHECK USING THE FOLLOWING METHODOLOGY:MERIT PAYCHECK TO BE PAID IN SEPTEMBER 2003.THE EMPLOYEE MUST BE ON AS AN ACTIVE,CLASSIFIED EMPLOYEE ON JULY 1,2003,IN ORDER TO RECEIVE THIS PAYCHECK.THE MERIT PAYMENT FOR FY 2003-2004 WILL NOT BE ADDED TO THE EMPLOYEE'S BASE PAY. I FURTHER MOVE THAT ANY ACTIVE.CLASSIFIED EMPLOYEE WHO HAS COMPLETED 11 YEARS IN THE POSITION RECEIVE 6% OF THEIR BASE SALARY AS A MERIT. There was another discussion on the final part of the motion. Councilmember Dietz AMENDED THE MOTION TO THAT EMPLOYEES WITH 11 YEARS PLUS SERVICE IN POSITION IN RANGES 60 AND ABOVE WILL RECEIVE A 6%PAY INCREASE ADDED THEIR BASE SALARY FOR FISCAL YEAR 2003-2004. SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 12 OF 14 There was general discussion on the 4% merit pay.It was determined that. it. was Junderstood that those in range 60 and above with less than 11 years in position would receive the 4% merit. Councilmember Insalaco SECONDED THE MOTION. VOTE:6-1 (Councilmember Inalaco voted in opposition,stating whereas the budget was fine,he had problems with the pay scale.He agrees with the 6% increase for those in range 60 and above,but he did not think the other employees were going to be getting 4%.He feels i t is bad timing.) ADJOURNMENT ) Mayor Coleman adjourned the meeting at 6:42 p.m. ACCEPTED THIS 19TH DAY OF AUGUST ,2003,BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 19TH DAY OF AUGUST ,2003. DOUGLAS COIEMAN Mayor ATTEST: KATHLEEN CONNELLY City Clerk SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 13 OF 14 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 July,2003.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 7th day of July,2003. KATHLEEN CONNELLY City Clerk SPECIAL MEETING OF THE CITY COUNCIL JULY 1,2003 PAGE 14 OF 14