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HomeMy WebLinkAbout2002-06-05 City Council Special MinutesCITY COUNCIL SPECIAL MEETING JUNE 5,2002 The special meeting of the City Council of the City of Apache Junction, Arizona,was held on June 5,2002,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 7:39 p.m. ROLL CALL Councilmembers Present:Mayor Coleman Vice Mayor Surra Councilmember Dietz Councilmember Durbala Councilmember Eck Councilmember Milkey Councilmember Urich Staff Present: Others Present: Interim City Manager George Hoffman City Clerk Kathleen Connelly City Attorney Joel Stern Public Safety Director Robert Warner Parks & Recreation Director Jeff Bell Library Director Pam Loui Finance Director Keith Lewis Public Works Director Doug Dobson Interim Development Svcs.Dir.Rudy Esquivias Assistant to the City Manager Bryant Powell Presiding City Magistrate David Alexander Library Manager Spencer Paden Finance Manager John White Human Resources Director Sue Stalcup Community Relations Manager Patrick Brenner SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 1 OF20 PRESENTATIONS BY AND DISCUSSION ON CITY MANAGER EXECUTIVE SEARCH FIRMS SELECTED FOR FINAL INTERVIEW.THE FIRMS WILL BE AVERY ASSOCIATES,BENNETT ASSOCIATES AND THE MERCER GROUP,INC. Stalcup briefed the council on the item. )Human Resources Director Sue Mr.Gary Brown,William Avery and Associates,addressed the council to give'a presentation on his firm, including their background,history, -work experience,and the process they would be using.He -gave them Options on the procedure for finalists.They will stay in contact with all the applicants from the beginning to the end. Vice Mayor Surra asked if he would be the one working with them if his firm was selected. Mr.Gary Brown stated that is correct. Vice Mayor Surra asked if they had a follow up process after the city manager is hired. Mr.Gary Brown stated they will make contact with the designated contact person six months after the hire to see i f the person is working out.They will also contact the city manager to see i f the person is happy in their job.He commented he could also do strategic planning. Vice Mayor Surra asked if the services that occur after selection and the negotiation for contract are included in the price that had been quoted. Mr.Gary Brown stated they are not. They are separate,such as strategic planning. Vice Mayor Surra commented she meant the negotiation phase. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 2 OF20 Mr.Gary Brown stated that is included in the fee. Vice Mayor Surra asked if part of that would include follow up to the council to help them come to an agreement on evaluation points.She asked if he had any counseling in that regard for the council. Mr.Gary Brown stated they could do that and have done that.He suggested they establish their objectives in the beginning. Vice Mayor Surra asked about their guarantee. Mr.Gary Brown stated if things do not work out within the first twelve months,they will come back and do it over again.There would be no fee for professional services,just out of pocket expenses. Councilmember Dietz asked if they were hired and found a good city manager for this position,would they then recruit him for a different city manager position in the future. Mr.Gary Brown stated never. Mayor Coleman stated that was one of his questions.There is a perception that headhunters have a stable of city managers and they get paid for moving the city managers around.He asked if they would go out and contact people they have never placed before that they feel would be the best candidates. Mr.Gary Brown stated they may call a candidate they have placed before to get names of other possible candidates, but they would not recruit him for that position.He commented it would be unethical for him to do so. Mayor Coleman commented he already answered the question on what steps he would take to gather information about the council,the community,and their needs.He had stated he would be SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 3 0F20 sitting down individually with them to determine their needs and what the current issues are.He asked if they had recruited for any other cities in Arizona other than Chandler. Mr.Gary Brown stated he did the one in Chandler,and when he was with Ralph Anderson and Associates he did Apache Junction,Show Low,Glendale and other areas.The firm has just been starting into executive recruitment over the past few years.They would like to come to Arizona. Mayor Coleman commented there are several of the other packets that say "partial".He does not know what that term means,whether they only partially completed the work or were only hired to do a part of the work.He asked if he called these other entities would they respond what work had been completed. Mr.Gary Brown stated that is correct.There are some cities that only want them to do the front end and then turn it over to their human resources department and others have done the front end and want them to do the references and assist in the interviews. They rarely do that;they prefer to do the entire job in case something does not work out. Councilmember Urich asked why they do not have any equaT employment Opportunity statement in their packet. Mr.Gary Brown stated it must be an oversight,as that and affirmative action are ingrained in them. Councilmember Urich commented it appears that almost all of their recruitments have been in California. Mr.Gary Brown stated that is correct. Councilmember Urich stated the Chandler recruitment was for a community development director. Mr.Gary Brown stated that is correct. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 4 0F20 Councilmember Urich asked if they have any information on the length of employment for their recruitments, Mr.Gary Brown stated he does not have that information with him,but two people they recruited recently retired from cities in California after fourteen years.This was when he was with another firm.His current firm has only been in existence for three years. Councilmember Urich stated the firm was incorporated in 1982 and they have just started doing recruitments in the last three years. Mr.Gary Brown stated that is correct.He listed other recruitments he personally did for other agencies. Mayor Coleman asked if they have ever had to use the guarantee.. Mr.Gary Brown stated they had not. Councilmember Durbala asked if they use written and video reviews. Mr.Gary Brown stated it is written unless they have a special request for video. Councilmember Durbala commented he had training in Bolivia,China and Russia.He asked if he also recruited there. Mr.Gary Brown stated i t is ethical based leadership training given to individuals in those countries.He did a strategic planning session for the national police in BOlivia. Councilmember Durbala asked what kind of questions he would be asking the individual council members. Mr.Gary Brown gave them examples of the questions he would be asking.He will be looking for similar answers from SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 5 0F20 the council members;if there is a conflict,he will get them together to determine what they want. Councilmember Durbala asked if he would be discussing those conflicting items at a work session or council meeting. Mr.Gary Brown stated that is correct. Councilmember Eck asked if he facilitates all the way through the process,including the interviews. Mr.Gary Brown stated that is correct.If they interviewed six candidates,he would ask them to rank order the candidates individually.They would then look at them,discuss each candidate and then narrow it down to two or three finalists.He would facilitate that process.He will not inject his comments on the candidates. Mayor Coleman asked if there was anything else he would like to tell the council. Mr.Gary Brown stated they would like to do it.They would like to expand their services to Arizona and he thanked them for their consideration. Mayor Coleman moved to the next applicant. Human Resources Director Sue Stalcup introduced Jim Mercer of the Mercer Group. Mr.Jim Mercer,the Mercer Group, addressed the council.He briefed them on his firm and his background as he would be the one they would be working with.It is a national firm started in Atlanta in 1981.He tries to develop a relationship with his client;how they want to work,how they need to have him work with them,and getting to know them individually and collectively to find out what the community needs in the way of a city manager.He would be an advisor only and give them their options throughout the process. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 6 0F20 Councilmember Durbala requested he give an overview of their proposal,especially the process. Mr.Jim Mercer briefed them on their process. Councilemmber Durbala asked if he would be handling Fountain Hills and Payson at the same time as Apache Junction. -Mr.Jim Mercer stated they are further along.A good. search consultant ,can handle seven to nine searches simultaneously,if they:arein he right 'Stages.He is about two-thirds finished with therv...,It.is,actually an advantage because he is already here. the whole process takes. 120 days,depending on the time of year. Councilmember Durbala asked how long Mr.Jim Mercer stated it takes 90 to Councilmember Durbala commented with school being out they would probably be.looking at the 120 days. Mr.Jim Mercer stated possibly,but if they are getting someone from another location,it is better to move in August than in September.This should probably be fast -tracked. Councilmember Durbala asked what would happen if after the process was completed,they did not find anyone that they really liked.He wanted to know if there would be additional costs for the city. Mr.Jim Mercer stated they would only have to pay for expenses;there would be no professional services fee. There is a very low likelihood of that happening.They can take advantage of the pools from Payson and Fountain Hills plus the pool for Apache Junction. Councilmember Durbala asked how often he would be talking to the council individually and as a whole. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 7 0F20 Mr.Jim Mercer stated he would want to interview each one for an hour,and then he might get all of them together. He would also like to sit in on a council meeting.About halfway through he will come back and have a meeting with them and give a status report.A few weeks after that they will have a meeting to look over the candidates.After that meeting they will have interviews with the finalists.Some councils also like him to come back after that to help them get to a decision point.He might also come back to help them set individual performance criteria. Councilmember Dietz asked if they have ever used their guarantee. Mr.Jim Mercer stated it has been used a couple of times.One of his placements died unexpectedly following emergency surgery so he did it there.He has offered to do it other times and the councils went elsewhere.It will happen in 27 years. Councilmember Dietz asked how soon he would come back and offer a position somewhere else to a city manager he has placed here. Mr.Jim Mercer stated one of their guarantees is that they will not do that.There have been cases of it:he placed a man in South Carolina 19 to 20 years ago.After 11 years he became interested in a recruitment he was doing in Gainesville,Florida,because he wanted to go back to Florida. Councilmember Dietz asked if he contacted the man or did the man contact him. Mr.Jim Mercer stated the man contacted him.He advised him he could not talk to him unless the man got permission from his local governing body that he could.The man ended up getting the job and he was hired to replace him.He tries his best not to do this as he has a strong ethical standard. Councilmember Dietz asked what the Phoenix office does. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 8 OF20 Mr.Jim Mercer stated it is temporarily vacant.The employee who had occupied it was hired by the City of Glendale as an assistant city manager.The office is there in form but not in substance. Councilmember Urich commented he has talked to as many as 23 references for a single candidate,and then he asks the references for references.She believes this gives him the opportunity to find out what the candidate is really like. Mr.Jim Mercer stated he asks for a lot of references,and if a candidate can only give him 4 or 5,that tells him something.He briefed them on the candidate that he checked 23 references on. Councilmember Urich commented she was pleased that they had broadened their equal employment opportunity statement to include people with disabilities.His competition has not.She was impressed that they do not use the same cadre of candidates over and over again. Mr.Jim Mercer stated it needs to be custom-tailored to the community to be done right.He does not have anyone in mind until he finds out what the community wants. Councilmember Urich commented they have done extensive recruitments in Arizona alone,and she was pleased to see that over 95% of their placements are still in the same position.She also liked their 24 month guarantee and that they do not present a candidate to more than one client at the same time. Mr.Jim Mercer stated he had been asked that from Payson about Fountain Hills and told them there might be common candidates,but he does not want to be involved in a "jousting" contest that would drive up the salary.He tries not to do that. Councilmember Urich commented he would be able to start immediately. Vice Mayor Surra asked if the two year placement guarantee is for any reason. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 9 OF20 reason. the client. correct. Mr.Jim Mercer stated i t is for any Vice Mayor Surra asked if they were Mr.Jim Mercer stated that is Vice Mayor Surra asked what forms of advertising they would use besides the brochures they would be sending out. Mr.Jim Mercer stated he would advise them where they typically place advertisements:they usually place an advertisement in the local newspaper to give local citizens an opportunity to apply.He would make a list of where he would place advertisements,such as the ICMA newsletter,the Nation's Cities Weekly.minority women publications and others.He would see what they wanted to add or delete.He will advertise within the budget. Vice Mayor Surra asked if there was enough money in the budget for a nationwide search. Mr.Jim Mercer stated there i Vice Mayor Surra asked if the performance criteria that he would help them with after the candidate is placed is part of the initial fee. Mr.Jim Mercer stated i t is.He gave as an example the placing of a city manager in Richmond,Washington. Vice Mayor Surra commented he had stated there would be questions for the interview process:that he would advise them on things they should not be asking.She asked if that was because of legal issues. •Mr.Jim Mercer stated that is correct.He would Consult with their attorney on those.They need to be job- related questions,not personal. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 10 OF20 Mayor Coleman commented on some of his recruitments that occurred in Arizona.He saw some were partial recruitments,such as the City of Glendale City Attorney.He asked if he was only hired for a specific part or if it did not work out. Mr.Jim Mercer stated the city attorney left and went to Phoenix and he was hired to recruit a city attorney. During discussions they determined their pool of candidates would come from large cities in Arizona.Another city had recently done this and had a pool of candidates,so they contacted that city and got their pool of candidates from them and decided they did not need his services. then had three other searches. City Attorney Joel Stern stated they .Vice Mayor Surra asked if he had ever been fired forjncbmpetency or unethical behaviors. Mr.Jim Mercer stated he had not. Mayor Coleman called for any other questions.There being no response,he thanked Mr.Mercer. Mr.Jim Mercer commented he appreciated the opportunity and requested they contact he or Sue Stalcup if they had any additional questions later. Human Resources Director Sue Stalcup introduced Mike Casey with Bennett Associates. Mr.Mike Casey gave them a short overview of his proposal.They have been in the field for over 20 years. They believe this is high-level consulting.The development of the profile is the most important part.The individual will have a tremendous impact over the success of the community and the council over time.They spend more time on the challenge statement than other firms.The steps are similar to the other firms.They interview the top 15 to 20 face-to-face to get a feel for who they are,and they bring a first group of 6 or 7 with a follow-up group of another 6 or 7.They will work with them on the interview process,suggesting questions.He will be on site to facilitate the process.They do detailed SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 11 OF20 backgrounds.They will help negotiate the process in the way the council wants them to.They are a national recruiter with good contacts across the country.He described his background and strengths.He commented they had already heard their recruitment process twice before and requested to respond to their questions. Vice Mayor Surra commented they had a qualifier on their proposal stating they would not go beyond certain expenses without written authorization.She asked if they often have to seek that authorization. Mr.Mike Casey stated he has seldom had to do it;definitely not in the last two years.It is generally because a client has thrown something extra at them. Vice Mayor Surra asked if they would be able to see the earlier interviews on videos of the candidates where council was not in attendance. Mr.Mike Casey stated they do not video them but they do provide that information.They will ask for their salary demands,strengths and weaknesses and why they want the position. Vice Mayor Surra asked if they have access to those that were not recommended for interview by the council. Mr.Mike Casey stated they would. He would talk to them about all of them. Councilmember Urich commented they have not had any experience in Arizona. Mr.Mike Casey stated he has personally,just not this firm.He has not done search work,but he knows a lot of people in the state and has recruited people from Arizona to go to positions out of the state.He has done consulting work for Phoenix,Peoria and other communities. Councilmember Urich commented their proposal includes an area where if a candidate from this search is hired SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 12 0F20 through them for another position in the city within twelve months of the closing date that the city will be billed for 75% of the professional fee of this recruitment proposal. Mr.Mike Casey stated that is standard practice,especially for the larger firms. Councilmember Urich commented they have not expanded their equal employment opportunity statement to include disabilities. Mr.Mike Casey stated they should have. Vice Mayor Surra commented she believes the reason why they ask for another fee should a second person be hired from the search is to keep the client honest and have them stipulate how many people they are looking for. Councilmember Durbala asked what questions he would be asking the council during their individual interviews. Mr.Mike Casey stated they focus on the challenges the organization will be faced with and the priorities and expectations,and if they can measure if they had the right person doing the things they wanted done.They also focus on their individual management style and approach. Councilmember Durbala asked what he would do if the council was going in all different directions. •Mr.Mike Casey stated he would come back to them as a group and work through it.Candidates seem to know that there could be different approaches needed for individual members.He added even if they were all of one mind,they would still have to sign off on the challenge statement. Councilmember Durbala asked what he does for them once they get down to the finalists. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 13 0F20 Mr.Mike Casey stated they will know a lot about them from reference work completed,from interviews previously done,confirmed education and certifications.They will suggest a set of questions based upon the challenge statement and discussions held between now and then.We will do the calling and getting them there.They will be at the meeting and do a brief overview on each candidate.The council will handle the questions and he will take notes.If they have more questions after the interview,they will go back to the references and make the references available to them. Councilmember Durbala asked how long it would take from approval of the contract to the interview process time. Mr.Mike Casey stated they would like 6 to 8 weeks to generate candidates.The candidates would like some time to arrange flights and get ready.He estimated 8 to 10 weeks before they could do interviews. Councilmember Durbala commented that is a fast time frame. Mr.Mike Casey stated they know the field.The extent that they want them to advertise is what really controls that. Councilmember Durbala commented the only thing that would slow it down is the council's interviews and their decisions on that.He asked if it would be 6 to 8 weeks from that period. Mr.Mike Casey stated he would expect to be talking'to them within a week to 10 days from their having said go.They would have reserved space in the publications.They should move right along. Councilmember Urich asked if he had any statistics regarding the length of time his recruitments have stayed in their jobs. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 14 0F20 Mr.Mike Casey stated he does not. They are probably no different than any other the others.The average is 4 to 5 years.Their key is the first 18 months to see if the fit is right. Councilmember Durbala asked what kind of follow up they do in six months to a year. Mr.Mike Casey stated they try to stay in touch with the client and the candidate to see how it has been working.He has been called in on a few occasions to help them get through, such as after an election and the council has changed. Councilmember Durbala asked if he would try to recruit any candidate placed here out from under the city or if they have a_guarantee. Mr.Mike Casey stated they could give them a guarantee.They do not touch anybody for the first 3 years. After 3 years,they will not make the initial contact.He advises them to contact their elected officials to get their permission. Councilmember Durbala asked if he had been a city manager before. Mr.Mike Casey stated he had been one at several places. Councilmember Durbala commented he is probably more familiar than most of the other recruiters having had some experience and background in what they are looking for. Mr.Mike Casey stated he believes he does.He is also involved from the policy standpoint. Councilmember Durbala commented he probably has a pretty extensive network. Mr.Mike Casey stated he had been a manager in a number of states. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 15 0F20 Councilmember Durbala asked if he would be the only one handling their recruitment. Mr.Mike Casey stated he will be the lead and the one they will see.He will have three others for support staff. They will do preliminary work on generating call lists and placing ads. Councilmember Durbala asked if he would have a better idea on the initial interviews of the candidates after doing the council interviews. Mr.Mike Casey stated that is correct.The council knows who they want in there. Vice Mayor Surra asked what kind of follow up he would be doing other than just keeping tabs on the successful candidate. •Mr.Mike Casey stated he would recommend that theyset out times for evaluating performance.He has sat down in 3 months to help people lay out where they want to go in the next 18 months and help them evaluate performance at 6 and 12 months.They encourage them to evaluate them at those intervals and have the criteria set up at three months. included in the -initial expenses. included,but i t is done. additional cost. Vice Mayor Surra asked if that is Mr.Mike Casey stated i t is not Vice Mayor Surra asked if it is an Mr.Mike Casey stated i t is not. Some councils like to do it on their own.A standard system should be developed. Vice Mayor Surra asked if he assists with the negotiating of a contract. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 16 0F20 the extent they want him to. done any Arizona recruitments. He has taken people from here. questions.There were none. minute break. meeting. Mr.Mike Casey stated he does,to Councilmember Milkey asked if he had Mr.Mike Casey stated he has not. Mayor Coleman called for any other Mr.Mike Casey thanked them. Mayor Coleman called for a five Mayor Coleman reconvened the SELECTION OF FIRM TO PERFORM CITY MANAGER SEARCH AND DIRECTION TO STAFF TO PREPARE A PROFESSIONAL SERVICES AGREEMENT FOR THE COUNCIL MEETING OF JUNE 18,2002 )Mayor Coleman asked for comments. Vice Mayor Surra stated she was disappointed in the Avery & Associates presentation as there were discrepancies in what was said today compared to what was said in the pre- interview process and with their brochure.She has a lack of trust with that individual.She has no problem with the other two. Councilmember Durbala asked what was different. Vice Mayor Surra stated the incorporation time frame in the pre -interview process appeared to be that all of the participants in the firm started at the time with recruitment,yet i t is actually they were doing some other kind of training and consulting with recruiting only being the last three years.She also asked for specific SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 17 OF20 examples of how they work their guarantee;they have had several in the past according to her information yet this gentleman said there were none.He is speaking from his personal experience instead of the firm's.He was talking about recruitments he did 15 years ago;this firm has not been recruiting for 15 years.She would not advocate for that firm.While she sees no problems with the other two firms,she had made up her mind on one from the proposals, but after the interviews she prefers another. Councilmember Eck stated he was impressed with all three but he preferred The Mercer Group as they appeared to have more of the "Arizona" thing then the other two. Councilmember Dietz agreed. Councilmember Urich agreed with Councilmember Eck.She also liked their two year guarantee. Councilmember Durbala liked Bennett Associates.He felt that with The Mercer Group doing two recruitments right now,they would get the people that have already been recruited.It would be easier to do.He also likes the fact that the representative from Bennett was a city manager and is a member of ICMA.He feels it gives them a heads up on someone that knows what a city manager has to do.He also would not get elected to that international position if you do not know the position,titles and how they work.They are looking to recruit the best individual they can get,not just those that have recruited in Arizona. Mayor Coleman asked if it was Mr. Mercer who stated he would like to have someone in place before school started. Councilmember Eck stated it was. Councilmember Durbala stated that would be within the same time frame as Bennett Associates. City Clerk Kathleen Connelly stated it would be advantageous for individuals with children. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 18 0F20 Councilmember Milkey stated he was impressed by all three.While he likes The Mercer Group being familiar with Arizona,he does feel the city could get the leftover candidates from the Payson and Fountain Hills search.He does like the fact that Mike Casey is a previous city manager and has a lot of experience in it. Vice Mayor Surra commented she wanted to be able to find a person that she could build a rapport with for this consulting position.She swung from her initial feeling to Bennett Associates from The Mercer Group,though Mercer is highly recommended. Councilmember Dietz and Mayor Coleman stated they could work with all three of them. basically the same. has the two year guarantee. use of the guarantee. CHOOSE BENNETT ASSOCIATES GROUP. MOTION. Mayor Coleman stated the costs are Councilmember Dietz stated Mercer There was general discussion on the Vice Mayor Surra MOVED THAT WE Councilmember Durbala SECONDED THE VOTE:5-2 (Councilmembers Eck and Urich voted in opposition.) The motion carried. Vice Mayor Surra asked if they needed to do a direction to staff to prepare the contract.She MOVED THAT WE DIRECT STAFF,PARTICULARLY JOEL,TO PREPARE A PROFESSIONAL SERVICES AGREEMENT FOR COUNCIL CONSIDERATION AT THE REGULAR MEETING OF JUNE 18,2002. Councilmember Durbala SECONDED THE MOTION. SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 19 OF20 VOTE:Unanimous. The motion carried. ADJOURNMENT meeting at 9:45 p.m. )Mayor Coleman adjourned the ACCEPTED THIS 6TH DAY OF AUGUST ,2002,BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 6TH ATTEST: KATHLEEN CONNELLY City Clerk DAY OF AUGUST 2002. DOUGLAS COLEMAN Mayor 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 5th day of June,2002.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 2nd day of July,2002. KATHLEEN CONNELLY City Clerk SPECIAL MEETING OF THE CITY COUNCIL JUNE 5,2002 PAGE 20 0F20