TABLE OF CONTENTS

FOR CITY COUNCIL PACKET

MARCH 6, 2012

The March 7, 2012 Formal Meeting has been Cancelled.

POLICY SESSION AGENDA

1. Council Information and Follow-up Requests/Consent Agenda/Call for an Executive Session/Reports and Budget Updates by the City Manager

2. Employee Service Recognition Announcements (NO REPORT)

3. Anti-Graffiti Task Force Recommendations

4. Phoenix Neighborhood Stabilization Program (NSP) Overview

5. Program to Enhance Local and Small Business Participation for City Procurements

6. Electronic Plan Review (EPR)

7. Legislative Update

GENERAL INFORMATION y Liquor License Applications Received for the Period of February 22, 2012 through February 28, 2012 y Follow-up: February 28, 2012 Policy Session y Follow-up: February 29, 2012 Formal City Council Meeting

Packet Date: March 1, 2012 CITY OF PHOENIX CITY COUNCIL POLICY SESSION TUESDAY, MARCH 6, 2012 - 2:30 P.M. CITY COUNCIL CHAMBERS 200 WEST JEFFERSON

Pursuant to A.R.S. § 38.431.02, notice is hereby given to the members of the City Council and to the general public that the City Council will hold a meeting open to the public on Tuesday, March 6, 2012, at 2:30 P.M. located in the City Council Chambers, 200 West Jefferson, Phoenix, Arizona.

1:00 P.M. - AN EXECUTIVE SESSION WAS CALLED FOR THIS TIME AT THE POLICY MEETING OF FEBRUARY 14, 2012.

THE TIMES LISTED FOR AGENDA ITEMS ARE ESTIMATED. ITEMS MAY BE DISCUSSED EARLIER OR IN A DIFFERENT SEQUENCE.

ESTIMATED COUNCIL INFORMATION AND 1. 2:30 P.M.- FOLLOW-UP REQUESTS.

This item is scheduled to give City Council members an opportunity to publicly request information or follow-up on issues of interest to the community. If the information is available, staff will immediately provide it to the City Council member. No decisions will be made or action taken.

CONSENT AGENDA.

This item is scheduled to allow the City Council to act on the Mayor’s recommendations on the Consent Agenda. The Consent Agenda has been publicly posted.

CALL FOR AN EXECUTIVE SESSION.

A vote to call an Executive Session may be held.

REPORTS AND BUDGET UPDATES BY THE CITY MANAGER.

This item is scheduled to allow the City Manager to report on changes in the City Council Agenda and provide brief informational reports on urgent issues. The City Council may discuss these reports but no action will be taken. THE TIMES LISTED FOR AGENDA ITEMS ARE ESTIMATED. ITEMS MAY BE DISCUSSED EARLIER OR IN A DIFFERENT SEQUENCE.

POLICY SESSION AGENDA -2- TUESDAY, MARCH 6, 2012

ESTIMATED 2. 3:00 P.M.- EMPLOYEE SERVICE Staff: Cavazos RECOGNITION (Presentation 10 min.) ANNOUNCEMENTS (NO REPORT)

This item is for information only. No City Council action is required.

ESTIMATED 3. 3:10 P.M.- ANTI-GRAFFITI TASK FORCE Staff: Miller, Hallett RECOMMENDATIONS (Presentation 10 min.)

This report provides the City Council with an update on the Anti-Graffiti Task Force efforts and requests approval of proposed program recommendations.

This item is for information, discussion and possible action.

Backup included in Council packet/City Clerk's Office.

ESTIMATED 4. 3:20 P.M.- PHOENIX NEIGHBORHOOD Staff: Miller, Hallett STABILIZATION PROGRAM (Presentation 10 min.) (NSP) OVERVIEW

This report provides the Mayor and City Council with an overview of the City of Phoenix Neighborhood Stabilization Program.

This item is for information only. No City Council action is required.

Backup included in Council packet/City Clerk's Office.

ESTIMATED 5. 3:30 P.M.- PROGRAM TO ENHANCE Staff: Cavazos, DeWitt LOCAL AND SMALL BUSINESS (Presentation 10 min.) PARTICIPATION FOR CITY PROCUREMENT

This report provides an overview of a proposed program to enhance local and small business participation in City procurements.

This item is for information, discussion and possible action.

Backup included in Council packet/City Clerk's Office. THE TIMES LISTED FOR AGENDA ITEMS ARE ESTIMATED. ITEMS MAY BE DISCUSSED EARLIER OR IN A DIFFERENT SEQUENCE.

POLICY SESSION AGENDA -3- TUESDAY, MARCH 6, 2012

ESTIMATED 6. 3:40 P.M.- ELECTRONIC PLAN REVIEW Staff: Krietor, Stark (EPR) (Presentation 10 min.)

This report provides an overview of efforts of the Planning and Development Department (P&D) to explore implementation of Electronic Plan Review (EPR). The report also requests City Council approval to select a consultant to conduct a business analysis and prepare specifications that would ultimately be used in a future and separate Request for Proposal (RFP) process for EPR software, program implementation, and training. In addition, P&D is requesting approval of a City position to manage the project.

This item is for information, discussion, and possible action.

Backup included in Council packet/City Clerk's Office.

ESTIMATED 7. 3:50 P.M.- LEGISLATIVE UPDATE Staff: Peters (Presentation 20 min.)

This report seeks approval, guidance and direction from the Mayor and Council on state legislation of interest to the City.

This item is for information, discussion and possible action.

Backup included in Council packet/City Clerk's Office.

ESTIMATED 4:50 P.M. - ADJOURNMENT

For further information, please call the Management Intern, City Manager's Office, at 602-262-4449.

For reasonable accommodations, call the Management Intern at Voice/602-262-4449 or TTY/602-534-5500 as early as possible to coordinate needed arrangements. Si necesita traducción en español, por favor llame a la oficina del gerente de la Ciudad de Phoenix, 602-262-4449 tres días antes de la fecha de la junta. THE TIMES LISTED FOR AGENDA ITEMS ARE ESTIMATED. ITEMS MAY BE DISCUSSED EARLIER OR IN A DIFFERENT SEQUENCE.

POLICY SESSION AGENDA -4- TUESDAY, MARCH 6, 2012

PHOENIX CITY COUNCIL MEMBERS

Councilman DiCiccio Councilman Gates Vice Mayor Johnson Councilman Nowakowski Councilman Simplot Councilman Valenzuela Councilman Waring Councilwoman Williams Mayor Stanton CITY COUNCIL REPORT

POLICY AGENDA

TO: Jerome E. Miller AGENDA DATE: March 6, 2012 Deputy City Manager FROM: Chris Hallett ITEM: 3 Neighborhood Services Director SUBJECT: ANTI-GRAFFITI TASK FORCE RECOMMENDATIONS

This report provides the City Council with an update on the Anti-Graffiti Task Force efforts and requests approval of proposed program recommendations.

THE ISSUE

An Anti-Graffiti Task Force co-chaired by Council members Michael Nowakowski and Tom Simplot was approved by City Council on March 29, 2011 with two representatives from each City Council District plus two representatives at large selected by the Mayor. Task Force members included Jack Pesnell and Dan Glauber, District 1; Kelly Galarneau, District 2; Doug Banfelder and Carol McKeever, District 3; Jimmy Gruender and Aaron Carter, District 4; Brandon Sirochman and Faith Weese, District 5; Patricia Averhoff and Kiffie Robbins, District 6; Vivian Gallo and Kent Jones, District 7; Ginnie Ann Sumner and Cloves Campbell Jr., District 8; Suzanne Thraen and George Young, Mayor’s appointments.

Over seven meetings, Task Force members worked with a facilitator to review the existing Neighborhood Services Department (NSD) Graffiti Program with the goals of: developing additional methods to address graffiti in Phoenix; exploring outreach methods to attract more businesses and residents to join existing anti-graffiti efforts; identifying opportunities to provide education on the impact of graffiti; and building capacity for the anti-graffiti campaign.

OTHER INFORMATION

The Anti-Graffiti Task Force made recommendations in each of the three NSD graffiti program areas: enforcement, education, and abatement. Details of each recommendation are attached to this report for review. Some items are already being implemented by the Neighborhood Services Department, including establishing a program similar to Project Scrub through the Blight Buster Volunteer Program, providing police officer training to encourage reporting of graffiti activity, and marketing the graffiti program through neighborhood association newsletters and websites. Some items will need to return to the Neighborhoods, Planning and Development, Housing & Homeless Subcommittee and City Council, including the proposed anti-graffiti pilot program and possible changes to Chapter 39 of the Phoenix City Code based on Council Policy direction. These recommendations were presented to the Housing and Neighborhoods Subcommittee on January 19, 2012 and the Subcommittee approved staff moving forward with the Anti-Graffiti Task Force recommendations for City Council review and support.

Anti-Graffiti Task Force Proposed Recommendations

A summary of proposed recommendations as modified based on guidance from the Housing and Neighborhoods Subcommittee is as follows (details of recommendations are attached):

Enforcement: 1. Propose establishing a pilot program providing positive and negative incentives for businesses on major thoroughfares to keep graffiti off their walls 2. Re-establish Project Scrub or similar program with Maricopa County Probation Officers and Blight Busters as part of a juvenile penalty option 3. Propose proactive code enforcement of graffiti 4. Purchase GPS cameras to aid in prosecution of graffiti vandals 5. Support legislative changes to mandatory sentencing of juvenile offenders and expand non-access of graffiti paraphernalia for anyone under 18

Education: 1. Educate businesses on fighting graffiti / keeping property free of graffiti is good for business 2. Expand Police Officer training on the desirability of reporting graffiti activity 3. Implement a holistic approach to marketing Graffiti Busters and anti-graffiti efforts 4. Establish a ‘graffiti-free school’ program, similar to ‘drug-free schools’ 5. Explore opportunities for School Resource Officers and Wake-Up Officers or Block Watch grants to include graffiti component in curriculum or requirements

Abatement: 1. Sponsor a city-wide Paint Out Graffiti Day on November 3, 2012 2. Work with the City’s Volunteer Coordinator to identify other citywide graffiti abatement opportunities throughout the year.

FINANCIAL IMPACT

Implementation of several recommendations is already underway utilizing existing resources. No additional funding is being requested at this time. Staff will work through the budget process to request additional funding to support these specific recommendations. RECOMMENDATION

NSD and the Anti-Graffiti Task Force request Mayor and Council approval of the proposed recommendations listed above. The Anti-Graffiti Task Force members would also like to continue meeting in an advisory capacity and to assist in moving many of these recommendations forward.

This item was recommended for approval by the Housing and Neighborhoods Subcommittee on January 19, 2012.

Attachment ENFORCEMENT ENFORCEMENT UPDATE ON IMPLEMENTATION PROPOSED TIMEFRAME 1. Provide positive and negative incentives for businesses to be graffiti free a) provide graffiti removal at no NSD to launch a Pilot Program in targeted charge 3 times - after the third area – education campaign to take place removal, owners on major over 3 months to affected property owners thoroughfares would be x NSD Graffiti Busters and Code charged for each site removed Enforcement inspectors will work together to track first three graffiti removals x Educational material will be provided after each of the first three removals July 1, 2012 x TBD - fee for cost of removal or court-mandated fine imposed on 4th graffiti removal x Tracking and billing system being developed in NSD x Change to the City Code may be necessary to implement this recommendation

b) charge for owners of property in NSD will work with Law Department and City thoroughfares can be waived if Prosecutor on implementation. property owner agrees to testify x Change to the City Code may be July 1, 2012 during prosecution necessary to implement this recommendation c) provide positive recognition by NSD is implementing a Neighborhood City Council for pro-active Association, Blight Busters, and/or business owners Neighborhood Block Watch nomination 2012 process for recognition. Criteria for awardees are being developed. d) define graffiti as vandalism - so State statue defines graffiti as property it is unassociated with wall damage. 13.1602 A (5) mural art x Drawing or inscribing a message, slogan, sign or symbol that is made on any public or private building, structure or surface, except the N/A ground, and that is made without permission of the owner x The City may advocate for the state to remove the wording 'except the ground' from the statute e) create a permitting system for Sign Ordinance (Zoning Ordinance Chapter businesses wishing to display 7 Section 705) murals or graffiti art x Planning Department currently has a permitting process for paint-based signs; the enforcement of illegal N/A signs is complaint-based x A paint-based sign application costs between $300 -$450 and the permit fee is $75. Works of fine art are exempt from the permitting process

2. Re-establish Project Scrub or NSD's Blight Buster program currently offers Blight Buster program is similar program a similar service free of charge and can act active as substitute program

3. Provide pro-active code Graffiti is currently abated proactively. enforcement of graffiti x Goal is to have graffiti removed within 48 hours and implement a recidivist policy/punishment x NSD is pursuing the '3 Strikes' program (as described in 1-a) as a See 1-a measure to encourage property owners to abate graffiti on their own x Change to the City Code may be necessary to implement this recommendation

4. Purchase more GPS cameras in Cameras are $1200 each under current order to aid prosecution of contract - funding source would be graffiti vandals necessary for additional camera purchases. NSD is in 3rd year of 5 year There are currently 18 GPS Blight Buster contract cameras as well as 3 cameras for resident check-out available at the NSD West facility.

5. Legislative Recommendations a) prohibit possession of graffiti Currently included in city ordinance 39.10. paraphernalia/materials for HB2201 - Unlawful possession of graffiti juveniles on probation implements; minors; exception; classification; definition x NSD worked with Intergovernmental Programs on state statute inclusion which would prohibit juveniles from possessing graffiti paraphernalia without the permission of a parent or Legislative Action Is Pending guardian. x NSD also pursued expanding the non access ordinance to apply to cities with populations over 500,000 making it illegal for retailers to sell spray paint or broad-tipped indelible markers to anyone less than 18 years of age. b) mandatory sentences to include HB2709 - Juvenile hearing officer; minimum fine or community appointment; term; compensation; hearings; service for adults and juveniles required attendance; contempt x NSD worked with League of Cities, Maricopa County Attorney and MAG Legislative Action Is Pending who support mandatory community service and graduated mandatory fines.

EDUCATION UPDATE ON IMPLEMENTATION PROPOSED TIMEFRAME 1. Educate property owners to NSD to launch a Pilot Program in targeted keep their property graffiti-free area – education campaign to take place over 3 months to affected property owners April – June 2012 x Program currently being developed. x Will be a 3 month education effort to announce the '3 Strikes' campaign in Pilot Program area x Pilot Program to begin July 1, 2012

2. Train police officers as to the NSD provides an annual full day desirability of reporting graffiti comprehensive training to police officers. activity Last year 80 officers attended. NSD will 2012 include graffiti information monthly in the police department precinct bulletins for start of shift.

3. Market the graffiti program holistically a) City Services bill information Will work with Public Information Office to include information in a 2012 City Services 2012 bill. b) NSD newsletters / Community NSD includes a Graffiti Busters/Blight newsletters Busters segment in each of its quarterly 2011 - Ongoing newsletters. c) City website banners NSD will work with Public Information Office 2012 to pursue banner advertisements d) Provide information on top 10 Graffiti experts report that posting taggers taggers to media outlets provides them with notoriety and benefits the taggers more than the city's goal to be N/A graffiti-free. NSD proposes to utilize media outlets to publicize anti-graffiti efforts and high profile prosecution. e) Work with non profit partners NSD will work with its non profit partners to Ongoing publicize anti-graffiti efforts where applicable. f) Provide education to rotating NSD will coordinate with Maricopa County Maricopa County and City Attorney's Office and City Prosecutor's office 2012 judges to provide training on a periodic basis

4. Launch a 'Graffiti-Free School' NSD is working with schools to develop program curriculum. Will be provided in 2012-13 2012-13 School Year school year. a) Launch an anti-graffiti poster or NSD will use the Graffiti Free School social media contest at graffiti- Curriculum to outline poster or social media 2012-13 School Year free schools contest. Will be provided in 2012-13 school year. b) Provide educational speeches NSD is working with schools to develop at public, charter, and faith- curriculum. Will be provided in 2012-13 2012-13 School Year based schools school year.

5. Require schools with SRO's or NSD proposes to use the Graffiti Free Wake Up officers to allow School curriculum in all schools with SRO graffiti education and Wake Up officers. There are currently 2012 56 Phoenix schools with SRO's - in partnership with the AZ Dept of Education. a) Utilize Blight Busters to provide NSD will explore contracts with schools - will graffiti education at various include Parks Department after-school 2012 schools programs and libraries.

ABATEMENT - Revised UPDATE ON IMPLEMENTATION PROPOSED TIMEFRAME Recommendations 1. City-wide paint out graffiti day Paint Out Day is scheduled for November 3, 2012. The event will be promoted at GAIN Nov. 3, 2012 events, generally the third Saturday in October. a) City of Phoenix Volunteer NSD will work with Volunteer Coordinator for Coordinator can assist in assistance. 2012 planning b) Search for corporate or Task Force members can solicit donations professional sport sponsorships for Graffiti Paint Out Day or other Graffiti Education programs. NSD staff will be 2012 available to work with Task Force and on sponsorship or donation follow up. c) Ask Businesses who have NSD will work with businesses that have received Council recognition been recognized by Council 2012 (1d) to be involved d) Provide education surrounding Distribution and promotion at GAIN events 2012 the event citywide e) Secure media coverage for the Task Force and NSD will work with media 2012 event outlets CITY COUNCIL REPORT

POLICY AGENDA

TO: Jerome E. Miller AGENDA DATE: March 6, 2012 Deputy City Manager FROM: Chris Hallett ITEM: 4 Neighborhood Services Director

Kim Dorney Housing Director SUBJECT: PHOENIX NEIGHBORHOOD STABILIZATION PROGRAM OVERVIEW

This report provides the Mayor and City Council with an overview of the City of Phoenix Neighborhood Stabilization Program.

THE ISSUE

The Phoenix area has been one of the hardest hit localities in the country for foreclosure activity; with approximately 67,000 homes foreclosed over the past five years. In response to the housing and economic crisis, the U.S. Department of Housing and Urban Development (HUD) awarded Phoenix $115 million in Neighborhood Stabilization Program (NSP) funding through three separate grant awards. In March 2009, HUD awarded the City of Phoenix $39.4 million in Neighborhood Stabilization Program (NSP1) grant funds from the Housing and Economic Recovery Act of 2008 (HERA). In February 2010, the City received an additional grant for $60 million in competitive NSP2 funds under the American Recovery and Reinvestment Act (ARRA). In March 2011, HUD executed a grant agreement awarding Phoenix a third grant of $16 million in NSP3 funds from the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The Neighborhood Services and Housing departments developed Council-approved Action Plans for each of the three NSP programs with strategic goals and a targeted approach to addressing foreclosed and abandoned homes within areas of greatest need to meet the HUD Neighborhood Stabilization Program parameters of each grant. The City’s efforts are geared toward purchasing foreclosed and/or abandoned single family and multifamily units at a discount and to rehabilitate, resell, or redevelop these homes. These efforts are helping to stabilize neighborhoods and mitigate the impact of the housing foreclosure crisis stemming the decline of values of neighboring homes within the Phoenix and neighboring communities. The City has further defined program target areas such as existing Council adopted revitalization areas as well as proximity to mass transit and employment sectors. All NSP funds must be used to address abandoned, foreclosed properties through acquisition, rehabilitation, demolition, redevelopment and financial incentives. Additionally, funds must serve households at or below 120 percent of area median income (AMI) and at least 25 percent of funds must benefit households at or below 50 percent of AMI, which will be used primarily for rental housing opportunities.

OTHER INFORMATION

Phoenix addresses foreclosed single family properties through acquisition, rehabilitation, demolition, redevelopment and financial incentives. Single family programs include the Home Ownership Assistance Program (HAP), Home Improvement Program (HIP), Move-In Ready Program (MIR), Redevelopment of Subdivisions and Demolition of City-acquired, blighted and abandoned/foreclosed properties. NSP is working on multiple fronts including renovating homes, generating jobs, setting homebuyers up for success, offering financial support, inspiring buyers to purchase, and encouraging neighbors to improve their properties.

NSP funds have made a significant impact on multi-family properties and in the surrounding neighborhoods. Strategies for foreclosed multi-family properties include Acquisition/Rehabilitation and Preservation of Affordable Units. The allocated funding has been used to revitalize blighted and distressed properties, and new property owners have worked to identify and remove any criminal elements affecting the property. Providing affordable housing along the light rail and other job/transportation hubs has been another priority in the use of NSP funds in multi-family acquisition and rehabilitation projects. Four of the properties receiving NSP funds are located near an existing or proposed light rail route.

Through the combined NSP funding, more than 2,400 foreclosed housing units will be recovered from foreclosure. NSP projects also create neighborhood synergy by inspiring others, renewing neighborhood confidence and building community connections that extend further than only those receive the assistance. Grassroots outreach efforts to neighbors of NSP homes, community leaders and presentations at neighborhood HOA and block watch meetings are getting the message out. These efforts heighten the program’s public awareness and covey program benefits to the community.

NSP funding helps create new jobs and retain existing jobs in Phoenix through home construction, rehabilitation, building materials, lending, real estate sales and property management. Phoenix works with a number of non-profit and for-profit organizations to deliver program activities and services. An estimated 1,250 jobs will be created or retained as a result of NSP projects. The Phoenix NSP program is providing jobs through small and disadvantaged construction companies with over 58 percent of all contracts awarded to Section 3 certified contractors. A number of the homes have been rehabilitated with disadvantaged young adults participating in the Youth Build training program affected by program partners, the Cesar Chavez Foundation and Labor’s Community Service Agency.

Phoenix NSP programs also incorporate green rehabilitation standards modeled from national organization and local practitioners. Criteria include: 3r’s - reduce, reuse and recycle, site improvements, water conservation, energy efficiency and healthy living environment. The rehabilitation standards are based on sustainability and long term affordability. Staff has shared best green practices with local developers, contractors, and presented nationally through webinars and local workshops. The objective is to build capacity in the local community for green building practices and resources.

The program has cultivated cooperation from housing lenders, collaboration with real estate professionals, worked with HUD to clarify or modify program guidelines, and developed recommendations for program modifications to better address challenges and needs. In spite of the complexity of the foreclosure crisis, the newness of the program for housing lenders, stiff competition facing potential homebuyers from private investors, and other factors, staff has worked diligently in implementing the program within the parameters of the HUD regulations.

NSP Outcomes

NSP1 As of September 2011, the first goal was met “obligating” 100 percent of the $34 million in NSP1 funding of which $26.7 million (67.64%) has already been expended and has a program completion deadline of March 2013. NSP1 is expected to restore approximately 900 foreclosed single- and multi-family units to productive use through acquisition and rehabilitation.

Single Family: Thus far, 248 single-family homebuyers have invested a combined total of over $20 million in purchasing foreclosed homes, leveraged by $3.4 million in NSP purchase assistance. Both the HAP and HIP activities are almost complete, and the MIR has resold 56 of the 65 completed homes. A total of 105 properties were acquired in NSP1 of which 26 will be rehabilitated and sold under NSP2.

Demolition: Additionally, 16 properties have been acquired and demolished to eliminate blighting influences and provide land for future infill development, completing this effort. Included in this activity was the acquisition and green demolition of the Sunset Manor property (the Barracks) in the Village Center Neighborhood Initiative Area.

Multi-family: Three multi-family rental properties, comprised of 809 apartment homes, have been acquired for rehabilitation, exceeding the original goal of 480. Of the 809 units, 515 are reserved for families with income at or below 50 percent of Area Median Income (AMI).

x Collins Court Apartments, 10421 North 33rd Avenue x The Summit Apartments, 12830 North Paradise Village Parkway West x Park Lee Apartments, 1600 West Highland Avenue

NSP2 As of February 11, a total of almost $31.2 million or 51.96% of the NSP2 funding had been drawn thus meeting the NSP2 program deadline of expending 50% of the $60 million. NSP2 has a completion deadline of February 2013 for the remaining $28.8 million.

Single Family: The City of Phoenix is the lead agency in the Phoenix Partners Consortium which consists of both non-profit, private for-profit and public organizations. The Phoenix Partners were selected based on experience with federal funding, foreclosures and rehabilitation, as well as their ability to bring leveraged funding to the program. Phoenix competed against other cities and agencies nationally and was awarded the fifth largest grant based on NSP1 program accomplishments and the strength of partners and leveraged resources. The NSP2 strategies are consistent with local and regional efforts to enhance housing and community development objectives and align with the conservation, growth, and redevelopment goals and policies of adopted city and regional comprehensive plans.

NSP2 expects to assist 280 homebuyers with an NSP investment of $4.2 million, leveraging over $25 million towards the purchase of foreclosed homes, Through the MIR 107 properties have been acquired. Rehabilitation is complete on 40 homes with 5 sold and another 30 under purchase contract. Additionally, 4 properties have been acquired by homebuyers receiving funding assistance through the HIP and have completed rehab; another 7 have purchase contracts pending.

Redevelopment: NSP2 includes a redevelopment of subdivisions component to help address the complexities of failed smaller infill subdivisions. Vineyard Mountain Ranch, a partially completed subdivision with 14 remaining lots, has been acquired to be constructed in the future including greening efforts and solar components. Two additional failed subdivisions are being evaluated based on proximity to jobs, transportation and potential to further improve surrounding neighborhood property values.

Demolition: Acquisition and demolition of blighting properties is a last resort strategy in existing target areas. To date, 13 properties have been acquired, with demolition complete on 8.

Multi-family: A total of 830 units in 6 multi-family rental properties have been acquired for rehabilitation and re-occupancy of vacant apartment homes, exceeding the original goal of 480. Of the 830 units, 536 are reserved for families with income at or below 50 percent of Area Median Income (AMI). Funding for the following properties is programmed:

x Cochise Gardens Apartments, 1025 West Cochise Drive x Park Lee Apartments, 1600 West Highland Avenue (Rehab) x West End Light Rail Apartments, 4802 North 19th Avenue x Pine Crest Apartments, 2601 West Claremont Avenue x Santa Fe Springs Apartments, 1717 West Glendale Avenue x Desert Leaf Apartments, 44 South Horne, Mesa, AZ (Regional Approach) The NSP2 grant included a regional approach to affordable multi-family housing to address the competitiveness of the application. In partnership with the City of Mesa and a non-profit, the Housing Department has provided funding assistance for the acquisition of Desert Leaf Apartments, in Mesa, AZ. The developer will provide permanent supportive housing for the homeless once rehabilitation at this 20-unit property is complete.

NSP3 NSP3 funds will be used for the same programs and purposes as NSP1 and NSP2, building on the impact already underway. NSP3 must expend 50 percent by March 2013 with a completion deadline of March 2014. NSP 3 is projected to serve a minimum of 250 families. As in the current programs, funding must be spent to address abandoned, foreclosed properties through acquisition, rehabilitation, demolition, redevelopment and financial incentives.

Although the program retains the requirements of the current two NSP programs, it also calls for more strategic use of funds in smaller geographic areas for more observable results. Grantees are required to select and submit their target areas based on the needs scores provided by HUD and to employ strategies that will have a measurable impact on the community.

ADDITIONAL INFORMATION

The Phoenix NSP continues to be highlighted in local and national media in its efforts to address vacant homes resulting from the foreclosure crisis. An interview with the American Planning Association for an article on innovative practices addressing vacant properties, and a six city case study on resilience in the face of foreclosures was published by the National League of Cities. The Arizona Republic published two articles describing how HUD funds have positively benefited the community. A journal article in Sustainable Communities highlighted the program’s innovations, particularly around strategic targeting and energy efficiencies. Various local media have promoted the homeownership programs, providing helpful information to potential participants. Staff has participated in live interviews and joined panels hosted by groups such as the Center for Housing Policy to discuss leadership, outreach efforts, partnerships and leveraging financial resources to address foreclosures and help communities become more resilient.

The Neighborhood Services and Housing departments have been providing regular updates to the Neighborhoods, Planning and Development, Housing & Homeless (formerly Housing and Neighborhoods) Subcommittee throughout the program.

RECOMMENDATION

This report is for information only.

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POLICY AGENDA

TO: David Cavazos AGENDA DATE: March 6, 2012 City Manager FROM: Jeff Dewitt ITEM: 5 Finance Director SUBJECT: PROGRAM TO ENHANCE LOCAL AND SMALL BUSINESS PARTICIPATION FOR CITY PROCUREMENTS

This report provides an overview of a proposed program to enhance local and small business participation in City procurements. The program will be implemented by using a new Vendor Management System (VMS) that allows vendors to register online to receive active notification of City procurements that specifically impact their business. The VMS will also include a local, small business self-certification element to be used to provide opportunities for small and local businesses to compete for City business for goods and services contracts under $50,000 that are procured by the Finance Department.

THE ISSUE

Following a review and recommendations by the then Finance, Efficiency and Innovation Subcommittee, the City Manager formed a Procurement Review Workgroup in September 2011 comprised of City executives from the Finance, Street Transportation, Public Transit, City Auditor and Law Departments along with representatives from the Arizona Chamber of Commerce, Greater Phoenix Chamber of Commerce, Local First Arizona and the Innovation and Efficiency Task Force to review the current procurement process and suggest improvements. One element of this review was an online survey to current and potential vendors with over 7,000 vendors contacted.

One key finding of the survey was that local businesses wanted more information about procurement opportunities and more active outreach by the City. As a result, a key recommendation is the development of an online vendor registration program that will be used to notify vendors of procurements specific to their business. In addition, a greatly expanded and focused small and local business self-certification process to identify the capacity of small and local vendors to supply the City's need for goods and services is proposed. The online registration program will provide the opportunity to increase vendor participation to provide more competition and better prices to the City. Outreach to ensure local and small vendors are registered and a program targeting self-certified local, small businesses can help address local unemployment levels, create jobs, and provide additional income tax and sales tax revenues to the local economy.

OTHER INFORMATION

Current Process

Under the current process, when a department issues a formal solicitation (expected contract value over $50,000), a notice regarding the solicitation and a link to the solicitation documents are placed on the City’s web site and businesses who have requested to be notified are contacted by the staff to increase competition. Beyond this effort, businesses desiring to contract with the City must check the City’s web site regularly to see what solicitations are available. For certified Small Business Enterprises (SBEs) that go through the Equal Opportunity Department’s formal certification process, goods and services contracts under $50,000 are bid to those businesses through the SBE Reserve Contract Program. As long as three vendors for a specific product category are certified, the City will receive bids solely from with the SBE certified firms. For many bids, it is often difficult to find three certified SBEs.

Best Practices (Vendor Management Systems)

Over the last several years, increasing numbers of public and private organizations have taken a more active position to notify the business community of solicitation opportunities by using a Vendor Management System (VMS) that is comprised of an online vendor registration element and online notification process for registered vendors or businesses. The VMS is the initial phase of an "eProcurement" system that will ultimately allow solicitations to be issued and responded to entirely online. In these systems, vendors register online and maintain their current information which is used to provide notifications when a solicitation is available. In addition to putting the solicitation information on the web site (passive notice), the vendor database allows organizations to identify which vendors sell the products and services being sought in the solicitation and then sends notices to these companies, alerting them to the solicitation’s availability (active notice).

When businesses register in the system, they indicate what products and services they sell through the selection of commodity codes. Businesses may select as many codes as they wish that adequately represent their product and service offerings. When a solicitation is issued, the issuing organization queries the database for those businesses who registered for the products and services sought in the solicitation. Those vendors are then provided notices of the solicitation’s availability. Notices only go to those businesses who indicated they sell the applicable products and services during the registration process. When using a VMS, businesses seeking to contract with a given organization are assured they will be notified anytime the organization has a need for the products and services the business sells. This frees the business from having to repeatedly check the organization’s web site. With increased visibility and awareness of their solicitations, organizations using a VMS enjoy greater competition for each of their solicitations. This increased competition results in better contract terms, better prices and therefore greater value for the organization and its residents. A VMS will also be much more likely to be used extensively by the local business community and significant outreach to register local businesses can be pursued.

Proposed VMS for Phoenix to Enhance Local Business Opportunities

The Finance Department has reviewed VMS products that can provide an on-line vendor registration program for future solicitations. The proposal is to have the registration program introduced at planned Vendor Procurement Forums with the business community beginning in April 2012 with an effort to register all current and potential vendors by July 1, 2012 to make full use of the system for all procurements.

An additional enhancement to the VMS is a small, local business self-certification screen that can be completed as a vendor registers. The vendor or business would certify that they are headquartered or located in Maricopa County and that they qualify as a small business under the Federal Small Business Administration (SBA) guidelines. The new program would limit all goods and services procurements under $50,000, where the award is to the lowest bidder, to the self-certified small, local businesses. Self-certification will be subject to verification to prevent any misrepresentations. Those vendors that self-certify would be encouraged to complete the full SBE certification program which provides other opportunities for business with government entities.

With the Mayor and City Council’s goal to provide more opportunities for local businesses, a concerted effort to register local businesses in the new VMS system, extensive use of the VMS system for procurements, and the addition of a small, local business self-certification program for goods and service purchases under $50,000 will make significant progress in meeting this goal. This VMS system would be in the initial phase of a larger planned eProcurement system. The estimated cost of software, licenses, support and hardware for the VMS is expected to be less than $50,000 and is available in the Finance Department budget.

RECOMMENDATIONS

Staff recommends proceeding with the implementation of a Vendor Management System that will provide for online vendor registrations for use in active outreach in all procurements beginning July, 2012 and a small, local business self-certification process to be used for goods and services purchases under $50,000. CITY COUNCIL REPORT

POLICY AGENDA

TO: David Krietor AGENDA DATE: March 6, 2012 Deputy City Manager FROM: Debra W. Stark, AICP ITEM: 6 Planning & Development Director SUBJECT: ELECTRONIC PLAN REVIEW (EPR)

This report provides an overview of efforts of the Planning & Development Department (P&D) to explore implementation of Electronic Plan Review (EPR). The report also requests City Council approval to select a consultant to conduct a business analysis and prepare specifications that would ultimately be used in a future and separate RFP process for EPR software, program implementation, and training. In addition, P&D is requesting approval of a City position to manage the project.

THE ISSUE

As one of many efforts to streamline the development process in the City of Phoenix, P&D has been researching electronic plan submittal, review, tracking and storage. Traditionally, paper building plans have been required for plan submittal. This requires architects and engineers to print and deliver multiple sets of plans to P&D for review. Plans are then distributed sequentially to reviewers from several disciplines. When corrections are required, the plans are marked up and the professional must return to pick them up. In many cases, this cycle repeats for a second or third set of corrections, and each time the professional must pick up and drop off the plans. When plans are approved, they must be scanned and stored on the City’s database.

Emerging technology now allows for actual submittal and review of building plans electronically using the internet, customized plan review software, high-speed desktop computers, and large monitors. Plans can be submitted without visiting the municipality. They can be marked up electronically and data can be stored on secure servers. The many benefits of this technology are outlined below.

Benefits:

x Electronic submission eliminates paper plans and physical trips to City Hall x Speeds up plan review by allowing simultaneous review for all disciplines x Facilitates corrections by allowing both City and Design Professionals to look at and discuss marked up plans simultaneously x Reduces storage, routing, and retrieval issues associated with paper plans x Provides ability to overlay and track multiple versions of plans as corrections and changes are made x Reduces the frequency of plans being lost or misplaced within departments x Speeds recovery response of plans needed for reconstruction following a disaster x Enhanced public safety - plans can be made available to first responders and can aid in saving lives when structural plans are needed for rescue x Reduced plan submittal and review time means buildings can obtain their Certificate of Occupancy faster, enabling them to open for business and create jobs faster

OTHER INFORMATION

Staff research indicates that both nationwide and locally, functionality of EPR programs varies significantly. Some of the major variables include whether the plan review process is completely paperless (electronic tools used to mark up plan and plans only exchanged electronically), if plans can be reviewed simultaneously, types of plans and sizes of files accepted electronically, phasing of implementation, integration with existing business applications/data management systems, storage of plans and version control.

Staff conducted preliminary research on the implementation of EPR by other municipalities. Of the top 15 most populated US cities contacted by staff, only New York, Chicago, and Indianapolis indicated that they have implemented EPR. Los Angeles is working on rolling out a pilot program. Based on anecdotal information from customers and members of the Development Advisory Board, staff also contacted cities within Maricopa County that have either purchased EPR software or designed programs in-house. The City of Scottsdale and Town of Gilbert have built their own programs in house, and the City of Goodyear and Maricopa County have purchased EPR software. Tempe is near the end of a request for proposals (RFP) to select an EPR software provider. Due to the volume and scope of work in Phoenix, a third-party software program similar to programs used in other large cities (Chicago, Indianapolis, Los Angeles) is needed to implement EPR here.

FINANCIAL IMPACT

P&D is requesting approval to hire a Senior Information Technology Systems Specialist to manage the project. Work will include selection of a consultant to conduct a business analysis, preparation of an RFP, selection and implementation of software, training, and ultimately acceptance of the system. In preliminary discussions, potential EPR software providers have emphasized that a full-time project manager has been vital to successful implementation of EPR. The annual cost of the requested position is approximately $110,000.

At this time, P&D is also requesting authorization to hire a consultant (through QVL or RFQ process) to prepare a business analysis and specifications to be included in the EPR software RFP. Authorization is being requested to enter into a consultant contract for an amount not to exceed $225,000.

Following the completion of the business analysis, staff plans to return to the City Council to request authorization to release an RFP for EPR software, implementation and training. Preliminary research indicates that software costs can exceed $1 million, and staff estimates approximately $500,000 will be needed for disk space and servers. SCHEDULE

Hire Sr. Info Technology Systems Specialist April 30, 2012 Complete QVL/RFQ selection process for consultant to May 30, 2012 conduct business analysis and prepare RFP specifications Request authorization to Issue RFP for EPR software June 30, 2012 Recommendation to City Council for EPR software October 2012 provider

RECOMMENDATION

The report requests City Council approval to select a consultant for an amount not to exceed $225,000 to conduct a business analysis and prepare specifications that would ultimately be used in a future and separate RFP process for EPR software, program implementation, and training. In addition, P&D is requesting approval of a City position, Senior Information Technology Systems Specialist, to manage the project. Funding will come from the Planning and Development Department’s Development Fund. CITY COUNCIL REPORT

POLICY AGENDA

TO: David Cavazos AGENDA DATE: March 6, 2012 City Manager FROM: Karen Peters ITEM:7 Government Relations Director SUBJECT: STATE LEGISLATIVE UPDATE

This report provides information to the Mayor and Council on the status of state legislation in which a position has been established.

March 6 is the 58th day of the Second Regular Session of the 50th Legislature. The information provided in this report regarding status of legislation is current as of mid- day, March 1, 2012.

UPDATE ON LEGISLATION PREVIOUSLY CONSIDERED BY COUNCIL

Bold type indicates a change since the prior state legislative update report.

PUBLIC SAFETY

Bills Supported

SB 1043: Dangerous Drugs; Definition (Sen. Linda Gray, R-Phoenix) adds specific substances to the list of dangerous drugs. Staff is supportive of keeping the statutory list as up to date as possible to address substance abuse. SB 1043 passed the Senate by a vote of 28-0 on January 19, 2012 and now awaits House Committee assignments.

SB 1072: Minors; Reporting Duty; Missing; Deceased (Sen. Linda Gray, R-Phoenix) creates a criminal offense (class 5 felony) for failing to report the death of a child or vulnerable adult within 2 hours or as soon as possible. The bill also establishes new penalties (class 6 felony) for making false statements related to the disappearance of a child or vulnerable adult and for failing to file a missing persons report for children under the age of 13 within 24 hours of their disappearance. This bill passed the Senate by a vote of 30-0 on February 16, 2012 and now awaits a hearing in the House Government Committee.

HB 2018: Missing Child; Reporting; Offense (Rep. Michelle Ugenti, R-Scottsdale) requires that a parent, stepparent, guardian, or caretaker of a minor report a missing child that is less than six years of age and the person knows or has reason to know that the child has been missing for 24 hours. A violation is classified as a class 5 felony. HB 2018 passed the House by a vote of 57-0 on February 6, 2012 and now awaits a hearing in the Senate Public Safety and Human Services Committee. HB 2094: Prepaid Wireless E911 Excise Tax (Rep. Rob Robson, R-Chandler) imposes an eight tenths of one percent excise tax on the gross proceeds of sales or gross income derived from the retail sale of prepaid wireless telecommunication services (e.g. $100=$0.08). The monies would be deposited in the telecommunications services revolving fund which supports 911 services. The bill was amended to allow a vendor to retain three percent of the tax before remitting the tax to the Arizona Department of Revenue. This bill passed the House by a vote of 55-0 on February 28, 2012 and now awaits action in the Senate Finance Committee.

HB 2130: Disease Testing; Public Safety Employees (Rep. Justin Pierce, R-Mesa) permits a public safety employee or volunteer to petition the court to order blood tests on a person that bit, scratched, spat, or transferred blood or other bodily fluids on or through the skin or membranes of the public safety employee or volunteer in performance of official duties. This bill passed the Senate Healthcare and Medical Liability Reform Committee by a vote of 6-0 on February 29, 2012 and now awaits action in the Senate Rules Committee.

HB 2349: Medical Marijuana; Cardholder; Campuses; Prohibition (Rep. Amanda Reeve, R-Phoenix) prohibits use or possession of marijuana on a school campus, private or public university, community college, or in a child care facility by a person with a medical marijuana card. HB 2349 passed the House by a vote of 52-2 on February 29, 2012 and now awaits Senate Committee assignments.

HB 2356: Drugs; Definition (Rep. Karen Fann, R-Prescott) adds chemical compounds comprising “bath salts” to the list of dangerous drugs in A.R.S. § 13-3401. This bill was signed by the Governor on February 17, 2012.

HB 2361: Consumer Fireworks; Regulation (Rep. Karen Fann, R-Prescott) grants cities the authority to regulate sales of permissible consumer fireworks. This bill was approved by the House Rules Committee on February 28, 2012 and now awaits House Floor action.

HB 2395: Scrap Metal Dealers; Prohibited Transactions (Rep. Tom Forese, R- ) now prohibits scrap yards from purchasing commercial air conditioner condenser coils and compressors from persons without an industrial account. This bill was approved in the House Rules Committee on February 22, 2012 and now awaits House Floor action.

HB 2396: Theft of Metal; Sentencing (Rep. Tom Forese, R- Gilbert) amends A.R.S. § 13-1801 to remove the word “scrap” when referring to metal in the metal theft statutes. The change is meant to clarify that whether the metal is considered scrap or not, the amount of theft is based on the fair market value of the metal. As a result, convictions could lead to stricter sentencing for metal theft. HB 2396 passed the Senate Commerce and Energy Committee by a vote of 6-0 on February 29, 2012 and now awaits action in the Senate Rules Committee. Bills Opposed

SB 1304: Firearms Regulation; Political Subdivisions (Sen. Frank Antenori, R-Tucson) amends A.R.S. § 13-3108 to remove the ability of cities to prohibit discharge of firearms within 1/4 mile of an occupied structure. The language being stricken was implemented last session as a compromise to the SB 1334: Hunting in City Limits (2011) as an attempt to protect residents from those hunting on state trust lands near urban areas. This bill passed the Senate Judiciary Committee by a vote of 5-2 on February 13, 2012 and now awaits action in the Senate Rules Committee.

SB 1306: Alarm System Installation; Contractors; Municipalities (Sen. Frank Antenori, R-Tucson) preempts the Police Department’s regulation of alarm agents. The penalty for violating this statute is withholding of state shared revenue until a violation is resolved. This bill was approved in the Senate Rules Committee on February 27, 2012 and now awaits Senate Floor action.

SB 1313: Intersection; Definition (Sen. Frank Antenori, R-Tucson) establishes a definition for intersections that have traffic control devices. When a stop/yield sign is designated, on approach the intersection begins within the crosswalk or beyond the stop sign or both. On departure, the intersection begins to the far side of the sidewalk. Police and Streets staff is concerned that the City’s red light running program would be less effective, as the definition would allow more drivers to run red light intersections. This bill passed the Senate Appropriations Committee by a vote of 9-3 on February 2, 2012 and now awaits a hearing in the Senate Natural Resources and Transportation Committee.

SB 1474: Weapons; University; College Grounds (Sen. Ron Gould, R-Lake Havasu City) requires public universities and community colleges to create protocols to allow persons with a valid permit listed in A.R.S. § 13-3112 to carry a firearm on campus. If an educational institution decides to restrict firearms in its buildings, gun storage lockers with easy accessibility, and specific signage would be required. This bill passed the Senate Judiciary Committee by a vote of 5-3 on February 6, 2012 and now awaits action in the Senate Rules Committee.

SB 1479: Firearms; State Regulation; Preemption (Sen. Ron Gould, R-Lake Havasu City) makes a number of revisions to Arizona gun laws. Under this bill, a city that prohibits firearms in its buildings would be required to post a sign at all public entrances, provide secure firearm lockers within reasonable proximity of the main entrance and under the control of the City or its agents, and allow for immediate retrieval upon exit from the building. Public events (those needing a permit from a political subdivision) are also included. This bill awaits a hearing in the Senate Judiciary Committee.

SCR 1029: Photo Radar Prohibition (Sen. Frank Antenori, R-Tucson) refers to the voters the question of eliminating all photo radar systems in the state. Staff is opposed to this measure since it could impact the City’s photo red light running program and photo speed zones around schools. This bill was approved in the Senate Rules Committee on February 23, 2012 and now awaits Senate Floor action. HB 2285: DUI; Ignition Interlock Device (Rep. David Smith, R-Carefree) eliminates the requirement for ignition interlock devices for those convicted of DUI crimes under A.R.S. § 28-1381. This bill awaits a hearing in the House Judiciary Committee.

HB 2288: DUI; Drugs; Driver License Revocation (Rep. David Smith, R-Carefree) eliminates the requirement for revocation of a drivers license for those convicted of DUI/drug crimes under A.R.S. § 28-1381 or A.R.S. § 13-3401. This bill awaits a hearing in the House Judiciary Committee.

HB2458: Wildfire First Responders; State Primacy: (Rep. Brenda Barton, R-Safford) requires the Arizona State Forester to be the incident commander for all wildland fires regardless of jurisdiction. Staff is concerned that if a wildfire took place within the City’s boundaries that the incident commander would not be a Phoenix Fire Command Officer. This bill awaits a vote in the House Energy and Natural Resource Committee.

HB 2606: Liquor Omnibus (Rep. J.D. Mesnard, R-Chandler) makes numerous changes to the liquor statutes. One provision changes liquor license hearings so that if a city does not make a finding/recommendation, the business automatically gets its license. Currently, if a city cannot make a determination, the state still has an opportunity to hold a hearing and make the decision. This change shifts the burden entirely to cities to ensure proper licensing. Another concern is the proposed limitation on liquor license application fees, which would impair the City's current cost recovery policy for these fees, thus shifting the burden of paying for the labor-intensive processing of these licenses to the general public. This bill was approved in the House Rules Committee on February 22, 2012 and now awaits action on the House Floor.

HB 2729: State Regulation of Firearms (Rep. David Gowan, R-Sierra Vista) is a similar to SB 1479. The bill would establish that if a cities that prohibits firearms in its buildings, would be required to post a sign at all public entrances, provide secure firearm lockers within reasonable proximity of the main entrance and under the control of the City or its agents, and allow for immediate retrieval upon exit from the building. This bill was approved in the House Rules Committee on February 20, 2012 and now awaits House Floor action.

HB 2748: Cities; Alarm Licenses; Reciprocity (Rep. Amanda Reeve, R-Phoenix) requires reciprocity between cities for a licensed alarm installer. The Phoenix Police Department is concerned that they would have to accept other municipal licenses that may be less stringent than their current standards. The bill was approved in the House Rules Committee on February 27, 2012 and now awaits House Floor action.

REVENUE & TAXES

Bills Opposed

SCR 1025: Property Tax Assessed Valuation; Limitation (Sen. Steve Yarbrough, R Chandler) refers to the voters the question of limiting the annual assessed valuation growth on property to the lesser of full cash value or five percent more than the valuation of the prior year. To illustrate: x If values drop 10% then the full drop is allowed x If values increase 10% only 5% is allowed x If values increase 2%, 2% growth is allowed

Staff recommends opposing this measure for the following reasons:

x In order to meet fixed debt obligations, taxing jurisdictions would need to raise tax rates in order to meet to full faith and credit obligations of General Obligation Bonds x The funding base for infrastructure and capital projects (i.e. fire and police stations, roads, parks, libraries, water and sewer pipes) will be constrained x Phoenix would have to indefinitely postpone its bond program ($150 million is currently on hold until a recovery begins) x Due to the reduction in the funding base, the City’s credit rating could be downgraded

SCR 1025 passed the Senate by a vote of 20-9 on February 23, 2012 and now awaits House Committee assignments.

HB 2815: Employment; Incentives; Regulatory Tax Credit (Rep. J.D. Mesnard, R- Chandler) contains language that establishes a universal regulatory tax credit would allow businesses and individuals to claim that they have suffered expense as a result of an excessive regulation and to claim a tax credit for such expenses. The cost of credits awarded in connection with city regulations would be deducted from shared revenue distributions. Initial impacts in FY 1014 and FY 2015 would be up to $31,250 per individual and $50,000 per corporation. In FY 2016 and forward, the credit would be $62,500 per individual and $100,000 per corporation. HB 2518 was approved in the House Rules Committee on February 20, 2012 and now awaits action on the House Floor.

HCR 2043: Tax Increases; Ballots; Vote Requirement (Rep. David Stevens, R-Sierra Vista) proposes to amend the Arizona Constitution, Article IX by adding section 25 to provide for an affirmative vote requirement of at least two-thirds of the qualified electors in an initiative or referendum election that involves state and local taxation measures. The measure also contains a retroactive application to measures adopted since November 5, 2002. HCR 2043 was approved in the House Rules Committee on February 15, 2012 and now awaits action on the House Floor.

NEIGHBORHOODS

Bills Supported

HB 2201: Graffiti; Unlawful Possession; Minors (Rep. Chad Campbell, D-Phoenix) prohibits minors from possessing graffiti implements (defined as aerosol/pressurized paint containers, etching tools) on public or private property without consent of the property owner. Exceptions are made if the parent or guardian is immediately supervising the youth, if the minor has written permission from their parent or guardian, or if the implements are work related or being transported between home and school. Violations are deemed a petty offense. HB 2201 awaits a hearing in the House Judiciary Committee.

HB 2709: Juveniles; Disposition; Criminal Damage (Rep. Steve Urie, R-Gilbert) mandates 100 hours of community service for a minor found guilty of committing graffiti crime. This bill awaits a hearing in the House Judiciary Committee.

PLANNING & ZONING

Bills Supported

SB 1001: Military Preservation; Land Exchanges (Sen. John Nelson, R-Litchfield Park) changes the process for exchange of state trust land for other public lands. The intention of the legislation is to provide new options to protect lands from encroachment around Luke Air Force Base or other military installations. SB 1001 passed the Senate by a vote 24-6 on February 27, 2012 and now awaits House committee assignments.

SB 1239: Planned Communities; Zoning; Requirements (Sen. Rick Murphy, R- Glendale) establishes that municipalities or counties cannot require, as part of a subdivision regulation or zoning ordinance, any development to have an homeowners association. As a result, the City could be left with the maintenance of a subdivision’s water retention basins and open space. This bill passed the House Government Committee by a vote of 6-2 on February 21, 2012 and now awaits action in the House Rules Committee.

SCR 1001: Military Preservation; Land Exchanges (Sen. John Nelson, R-Litchfield Park) would be placed on the ballot and if approved, amend the Arizona Constitution to permit the sale of state trust lands without auction and allow for land exchanges that are related to protecting military installations from encroachment. The companion piece to SB 1001, the resolution would assist ongoing operations at Luke Air Force Base and other military installations. SCR 1001 passed the Senate by a vote 25-5 on February 27, 2012 and now awaits House committee assignments.

ECONOMIC DEVELOPMENT

Bills Supported

SB 1170: Multimedia Production Incentives (Sen. John Nelson, R-Litchfield Park) creates and corporate and individual income tax credit for tax years 2012 through 2041 for qualified multimedia production companies. The credit is capped at $15 million for any one qualified project and there are caps on the maximum credits allowed in any one calendar year. The bill also provides tax credits for permanent motion picture structures. The Arizona Commerce Authority is responsible for administering the program. This bill was discussed and held on February 29, 2012 in the House Commerce Committee. TRANSPORTATION & AVIATION

Bills Supported

SB 1131: Transportation Project Advancement Notes (Sen. Steve Yarbrough, R- Chandler) provides authority for political subdivisions to accelerate construction of projects funded in a Regional Transportation Plan through the issuance of Transportation Project Advancement Notes (TPANs). Political subdivisions could issue and sell TPANs upon entering into a transportation project advancement agreement with ADOT, a regional association of governments or a designated grant recipient. The political subdivision will pledge its excise taxes to the repayment of the principal, premium, if any, and interest on the TPANs. In some cases accelerating projects saves inflation costs associated with waiting for years until the project is funded in the RTP. Advancing projects also can provide an opportunity to take advantage of favorable market conditions when land prices and construction costs are lower. This legislation mirrors the existing statute that provides authority to cities and counties to finance acceleration of highway projects using Highway Project Advancement Notes (HPANs). The bill passed the House Ways and Means Committee by a vote of 7-0 on February 27, 2012 and now awaits action in the House Rules Committee.

HUMAN RESOURCES

Bills Supported

HB 2165: Veterans; Employment Preferences (Rep. Heather Carter, R-Cave Creek) establishes a new preference process that would assist qualifying veterans applying for public jobs and promotions if already employed by a public entity. This bill passed the House by a vote of 54-5 on February 23, 2012 and now awaits a hearing in the Senate Veterans, Military and Government Affairs Committee.

Bills Opposed

SB 1484: Paycheck Deductions; Employee Authorization (Sen. Andy Biggs, R-Gilbert) restricts a public employer from deducting third party payments from an employee’s paycheck without annual written/electronic authorization. Violations would result in a civil penalty of $10,000 per violation. This bill passed the Senate by a vote of 19-11 on February 16, 2012 and now awaits House committee assignments.

SB 1485: Unions; Public Employees; Prohibitions (Sen. Rick Murphy, R-Glendale) would prohibit political subdivisions from entering into any collective bargaining agreements or meet and confer process with any union. This bill was approved in the Senate Rules Committee and now awaits Senate Floor action.

SB 1486: Public Employees; Activities; Unions; Compensation (Sen. Rick Murphy, R- Glendale) prohibits public employers from entering into any agreement that compensates public employees or third parties for union activities. This bill passed the Senate by a vote of 18-11 on February 28, 2012 and now awaits House committee assignments. SB 1487: Government Employees; Union Dues; Withholding (Sen. Rick Murphy, R- Glendale) prohibits the state and political subdivisions from withholding or diverting any portion of an employee’s wages to pay for union dues. This bill was approved in the Senate Rules Committee and now awaits Senate Floor action.

WATER & ENVIRONMENT

Bills Supported

SB 1288: Municipal Water Fees; Repeal; Appropriation (Sen. Gail Griffin, R-Hereford) repeals the $7 million municipal fee that was enacted last year and place that portion of the Arizona Department of Water Resources budget back on the general fund. The City position has been consistent that the fee was only a one-time payment and not permanent. The bill passed the Senate by a vote of 30-0 on February 16, 2012 and now awaits action in the House Agriculture and Water Committee.

HB 2363: Harvested Water; Committee (Rep. Karen Fann, R-Prescott) establishes a committee to review harvesting water. The City has been working with the bill sponsor since the summer on this issue, which could impact water rights, and is supportive of continuing the dialogue via a stakeholders process. This bill passed the House by a vote of 53-0 on February 27, 2012 and now awaits action in the Senate Water, Land Use and Rural Development Committee.

HB 2492: White Mountain Apache; Settlement; Appropriation (Rep. Russ Jones,R- Yuma) appropriates $2 million from the state general fund in order to comply with the White Mountain Apache water rights settlement. The bill was approved in the House Rules Committee on February 27, 2012 and now awaits House Floor action.

Bills Opposed

SB 1289: Storm Water Discharges; Construction Sites (Sen. Gail Griffin, R-Hereford) amends regulation of stormwater discharges from construction sites where retention or catchment basins are used. The Arizona Department of Environmental Quality (ADEQ) already provides a general permit for construction activities that considers the facility's best management practices for addressing runoff, including catchment or retention basins. This bill goes further, requiring a prospective waiver for discharges from retention basins except in the case of a 100 year storm event. The impact for the City is that it is precluded from further regulation of these facilities, even though they may discharge to storm sewers the City, which may result in violations of the City's Multi- sector General Permit issued by ADEQ. SB 1289 passed the Senate by a vote of 19- 10 on February 9, 2012 and now awaits a hearing in the House Environment Committee. HB 2416: Water and Wastewater; Denial Prohibited (Rep. David Stevens, R-Sierra Vista) was amended to require a city within a county of a population of more than 500,000 and less than 1.3 million to provide water services outside of its boundaries upon request in specified circumstances. Although the amendment would exempt Maricopa County, thereby excluding Phoenix, staff is still concerned with establishing poor state water policy. HB 2416 was approved in the House Committee of the Whole on February 29, 2012 and now awaits House Third Read action.

MISCELLANEOUS

Bills Supported

SB 1221: Precious Items Dealer; Permanent Residence (Sen. Michele Reagan, R- Scottsdale) clarifies that the dealers of precious items may only make purchases from their permanent place of business. This bill is aimed to prevent remote sales and sales from temporary tents on street corners and out of vehicles. SB 1221 passed the Senate by a vote of 21-5 on February 20, 2012 and now awaits a hearing in the House Commerce Committee.

HB 2551: Medical School; Appropriation (Rep. Ted Vogt, R-Tucson) appropriates $15 million for the University of Arizona’s Medical School – Phoenix Campus. The bill passed the House Higher Education, Innovation and Reform Committee by a vote of 7-1 on February 8, 2012 and now awaits a hearing in the House Appropriations Committee.

Bills Opposed

SB 1470: Rules; Data Quality (Sen. Lori Klein, R-Anthem) contains a number of useful clarifications to last year’s legislation regarding city license and permit timeframes (SB 1598). Unfortunately the bill was amended to include broad new requirements that all information disseminated by cities must adhere to specified “data quality” criteria such as peer review, reproducibility, and the like. This bill was approved in the Senate Rules Committee on February 27, 2012 and now awaits Senate Floor action.

SB 1505: Municipal Governments; Rulemaking (Sen. Judy Burges, R-Skull Valley) is a complex bill that would prescribe detailed procedures for cities to follow when making “rules,” which is broadly defined to include statements of general applicability regarding law, policy, procedure or practice requirements. The bill preempts existing procedures and in some regard conflicts with last year’s legislation regarding city license and permit timeframes (SB 1598). The bill also would hamper the city’s ability to streamline processes, such as self-certification or one-stop permitting. This bill was approved in the Senate Rules Committee on February 23, 2012 and now awaits Senate Floor action. HB 2570: Political Subdivisions; Proceedings; Governing Bodies (Rep. Justin Olson, R- Mesa) stipulates that for any law a city wants to adopt, the municipality must provide related materials and information at least 14 days before a city council vote and that it must provide three separate public meetings on the ordinance or the law is invalid. Committee amendments exempt procurements and emergency measures, but only for a 60 day enactment. Additionally, the bill gives legal standing for a resident to sue the city if they believe this process was compromised. HB 2570 was approved in the House Rules Committee on February 28, 2012 and now awaits House Floor action.

RECOMMENDATION

This report is for informational purposes only. CITY COUNCIL REPORT

GENERAL INFORMATION

TO: Lisa Takata PACKET DATE: March 1, 2012 Executive Assistant to the City Manager FROM: Cris Meyer City Clerk SUBJECT: LIQUOR LICENSE APPLICATIONS RECEIVED FOR THE PERIOD OF FEBRUARY 22, 2012 THROUGH FEBRUARY 28, 2012

This report provides advance notice of liquor license applications that were received by the City Clerk during the period of Wednesday, February 22, 2012 through Tuesday, February 28, 2012. INFORMATION The liquor license application process includes the posting of a public notice of the application at the proposed location for twenty days and the distribution of an application copy or a copy of this report to the following departments for their review: Finance, Planning and Development, Police, Fire, and Street Transportation. Additionally, License Services mails a notice to all registered neighborhood organizations within a one-mile radius of each proposed business location (excluding Special Events).

Additional information on the items listed below is generally not available until the twenty-day posting/review period has expired. LIQUOR LICENSE APPLICATIONS Application Type Legend O- L- N- OL- AOC- SE- Ownership Location New Ownership Acquisition Special & Location of Control Event Liquor License Series Definitions 1 In State Producer *7 On sale-beer & wine 11 Hotel/Motel-all liquor on premises 3 Microbrewery 8 Conveyance license-sale of all 12 Restaurant-all liquor 4 Wholesaler liquor on board planes & trains on premises 5 Government 9 Off sale-all liquor 14 Clubs-all liquor on 9S Sampling Privileges premises *6 On sale-all liquor 10 Off sale-beer & wine 15 Special Event 10S Sampling Privileges

*On-sale retailer means any person operating an establishment where spirituous liquors are sold in the original container for consumption on or off the premises and in individual portions for consumption on the premises. Within Agent/Owner Name Approx. 2,000 Feet Proposed Business Name/Address App. Lic. Protest of Light Agenda Phone Dist Type Type End Date Rail Date Kelly Hyne LPGA Foundation Tournament 2 SE Properties LLC (3/13-3/18/12) 15 N/A N/A *3/13/12 5350 East Marriott Drive 386-236-6245 Christopher La Mont Phoenix Film Foundation 2 SE (3/29-4/1/12) 15 N/A N/A *3/29/12 7000 East Mayo Blvd, Bldg. 14 602-373-3456 Andrew Buswell The Ethiopia Project 2 SE (4/5/12) 15 N/A N/A *4/5/12 7077 East Mayo Blvd. 360-607-1783 Andrew Buswell The Ethiopia Project 2 SE (5/3/12) 15 N/A N/A 4/4/12 7077 East Mayo Blvd. 360-607-1783 Andrew Buswell The Ethiopia Project 2 SE (6/7/12) 15 N/A N/A 4/4/12 7077 East Mayo Blvd. 360-607-1783

Randy Nations, Agent Roma Garden Ristorante 3 N 12 3/23/12 No 4/11/12 3923 East Thunderbird Road, #113 480-813-1364

Jason Temple Caledonian Society of Arizona 4 SE (3/24-3/25/12) 15 N/A N/A *3/24/12 300 East Indian School Road 602-920-5445 Jake Tommerup Grand Canyon Men’s Chorale 4 SE (3/31/12) 15 N/A N/A *3/31/2 300 East Indian School Road 602-327-7973 Within Agent/Owner Name Approx. 2,000 Feet Proposed Business Name/Address App. Lic. Protest of Light Agenda Phone Dist Type Type End Date Rail Date Charolette Kimerly, Agent Harley’s Italian Bistro 4 N 12 3/20/12 No 4/11/12 4221 North 7th Avenue 480-201-0728

Charles Fulton, Agent Locas Showclub 4 OL 7 3/20/12 No 4/11/12 3614 West McDowell Road 602-690-2660

Yang Lu, Agent China City Super Buffet 5 N 12 3/23/12 No 4/11/12 5301 West Indian School Road 480-570-7639

Marla Zimmerman All Sports Foundation, Inc. 6 SE (4/15-4/16/12) 15 N/A N/A 4/4/12 2400 East Missouri Avenue 602-206-7320 Paul Andrew Knights of Columbus St. Theresa 6 SE Council #13497 (4/21/12) 15 N/A N/A 4/4/12 5045 East Thomas Road 623-229-2492 Jerome Doris Arizona School for the Arts 7 SE (4/20/12) 15 N/A N/A 4/4/12 1410 North 3rd Street 602-912-9889 Michael Buschbacher The AZ Chapter of the Amer. Soc. of 7 SE Landscape Architects (3/31/12) 15 N/A N/A *3/31/12 424 North Central Avenue 480-206-0657 Priscilla Valencia Chicanos Por La Causa, Inc. 7 SE (3/10/12) 15 N/A N/A *3/10/12 2149 North 99th Avenue 602-257-0700 Within Agent/Owner Name Approx. 2,000 Feet Proposed Business Name/Address App. Lic. Protest of Light Agenda Phone Dist Type Type End Date Rail Date Mary Moriarty St. Patrick’s Day Parade and Irish 7 SE Society of Arizona, Inc. (3/17/12) 15 N/A N/A *3/17/12 1106 North Central Avenue 602-791-8721

Kathy Sullivan-Orton ACCEL (4/26/12) 8 SE 15 N/A N/A 4/4/12 100 West Washington Street 602-501-9906

Richard Anderson, Agent La Madeleine Country French Cafe 8 N 12 3/20/12 No 4/11/12 3800 East Sky Harbor Blvd. 602-538-1068

Ronald Gomez Latino Peace Officers Association 8 SE (3/31/12) 15 N/A N/A *3/31/12 401 West Washington Street 602-680-9985

Rogelio Sotelo Mission Market 8 N 10 3/23/12 No 4/11/12 1042 North 26th Street 602-348-4366

James Gruender One Voice Community Center, Inc. 8 SE (4/21/12) 15 N/A N/A 4/4/12 441 West Madison Street 602-618-7920

*Event Date – Application not received in time for Council review.

For further information regarding any of the above applications, please contact the City Clerk Department, License Services Section, at 602-534-3365.

RECOMMENDATION This report is provided for information only. No Council action is required. CITY COUNCIL REPORT

GENERAL INFORMATION

TO: Mayor and Council PACKET DATE: March 1, 2012

FROM: David Cavazos City Manager SUBJECT: FOLLOW-UP: FEBRUARY 28, 2012 POLICY SESSION

Attached are the February 28, 2012 Policy Session Minutes and Council Information and Follow-Up Requests. City Council Requests for Information and Announcements City Council Policy Session February 28, 2012

Councilman Valenzuela Councilman Valenzuela thanked all who attended the breakfast at Fire Station 30 on Saturday. Councilman Valenzuela extended an invitation to a story time at Palo Verde Library to kick off Read Across District 5 and Dr. Seuss’s birthday. He stated the event would be at 6:15 p.m. on Wednesday February 29, 2012 at 4402 N. 51st Avenue. He added more information was available at http://phoenix.gov/district5/index.html

Councilwoman Williams Councilwoman Williams thanked the over 500 people who attended almost every public meeting in support of the F-35 at Luke AirForce Base. She also thanked Nicole Stanton for giving a tour of the WellCare Foundation Center that provides free health care to single Moms and their children. Councilwoman Williams encouraged professionals to donate their time to a great cause. She stated the center was located at 55 W. Lexington and more information could be found at http://wellcarefoundation.org/ or http://phoenix.gov/district1/index.html

Vice Mayor Johnson Vice Mayor Johnson thanked all who attended the re-dedication of Eastlake Park. He also reiterated Councilwoman’s praise for the WellCare Foundation. Vice Mayor Johnson thanked Dr. Olson with South Mountain Community College for hosting a meeting with members of the African American community about junior college and higher education opportunities.

Mayor Stanton Mayor Stanton encouraged residents to check out the upgrades made to Eastlake Park through a collaboration between multiple City departments and the community.

Councilman Simplot Councilman Simplot welcomed residents to attend a service project at Cielito Park located at 3402 W. Campbell Avenue on Saturday, March 3, at 8:00 a.m. He also welcomed everyone to join him and Mayor Stanton for the 7th Avenue Street Fair on Saturday March 3 at 11:00 a.m.

Councilman Nowakowski Councilman Nowakowski thanked all who attended the Crime Summit including Acting Police Chief Yahner and Mayor Stanton. Councilman Nowakowski also announced Movie in the Park on Friday March 2 beginning at sundown at Sherman Park, 2124 W. Sherman St. He added the movie shown would be The Smurfs. He also invited residents to attend the Coronado Home Tour on Sunday March 3 beginning at 9:00 a.m.

Councilman Waring Councilman Waring welcomed any resident of District 2 interested in serving on a Village Planning Committee to contact his District Office at 602-262-7445. He also announced his next District meeting would be on March 16, 2012 at 7:30 a.m. at the Paradise Valley Community Center located at 17402 N. 40th St. He said the guest speaker would be Bill Montgomery, Maricopa County Attorney.

Councilman Gates Councilman Gates thanked the Matsuri Committee and everyone involved with Himeji Sister Cities for putting on a great the Matsuri Celebration at Heritage Square. He said approximately 60,000 people attended the event throughout the weekend and he was honored to introduce the United States Ambassador to Japan.

Mayor Stanton Mayor Stanton announced that February 28 was Pancake Day and encouraged residents to get free pancakes at the International House of Pancakes from 7:00 p.m. to 10:00 p.m. with all donations going to the Phoenix Children’s Hospital. Mayor Stanton also proclaimed the week of February 27 to March 4 as St. Mary’s Basketball Week in honor of St. Mary’s Women’s Basketball Team winning the State Championship and being ranked #1 nationally. *REVISED

CITY OF PHOENIX CITY COUNCIL POLICY SESSION TUESDAY, FEBRUARY 28, 2012 - 2:30 P.M. CITY COUNCIL CHAMBERS 200 WEST JEFFERSON

Pursuant to A.R.S. §38.431.02, notice is hereby given to the members of the City Council and to the general public that the City Council will hold a meeting open to the public on Tuesday, February 28, 2012, at 2:30 P.M. located in the City Council Chambers, 200 West Jefferson, Phoenix, Arizona.

*1:00 P.M.- AN EXECUTIVE SESSION WAS CALLED FOR THIS TIME AT THE POLICY MEETING OF FEBRUARY 14, 2012.

THE TIMES LISTED FOR AGENDA ITEMS ARE ESTIMATED. ITEMS MAY BE DISCUSSED EARLIER OR IN A DIFFERENT SEQUENCE.

Mayor Stanton called the meeting to order at 2:36 p.m. with Councilmembers Williams, Gates, Valenzuela, Waring, Nowakowski, Simplot, and Vice Mayor Johnson present. Councilman DiCiccio was absent.

ESTIMATED COUNCIL INFORMATION AND 2. 2:40 P.M.- FOLLOW-UP REQUESTS.

This item is scheduled to give City Council members an opportunity to publicly request information or follow-up on issues of interest to the community. If the information is available, staff will immediately provide it to the City Council member. No decisions will be made or action taken.

Action Taken: This item was taken out of order.

Councilmembers made general announcements; commended staff for work completed and submitted questions for staff follow-up. CONSENT AGENDA.

This item is scheduled to allow the City Council to act on the Mayor’s recommendations on the Consent Agenda. The Consent Agenda has been publicly posted.

Action Taken: There was no action taken.

CALL FOR AN EXECUTIVE SESSION.

A vote to call an Executive Session may be held.

Action Taken: There was no action taken.

REPORTS AND BUDGET UPDATES BY THE CITY MANAGER.

This item is scheduled to allow the City Manager to report on changes in the City Council Agenda and provide brief informational reports on urgent issues. The City Council may discuss these reports but no action will be taken.

Action Taken: There was no action taken.

ESTIMATED ORDINANCE S-38554 – *1. 2:30 P.M.- HIRE FORMER CHIEF JUSTICE MCGREGOR- FIXED ROUTE TRANSIT SERVICE MEDIATION – EMERGENCY CLAUSE

Request to authorize the City Manager, or his designee, to enter into a sole source contract with Honorable Ruth V. McGregor, former Chief Justice of the Arizona Supreme Court, to provide mediation services. Also request authorization for the City Controller to release funds not to exceed $25,000.

This item is for information, discussion, and possible action.

Backup included in Council packet/City Clerk's Office.

Action Taken: This item was taken out of order.

Vice Mayor Johnson motioned to approve staff’s recommendation. Councilman Nowakowski seconded the motion. The motion passed 7:1, with Councilman Waring opposing. ESTIMATED 3. 3:00 P.M.- STATE LEGISLATIVE UPDATE Staff: Peters (Presentation 30 min.)

This report seeks approval, guidance, and direction from the Mayor and Council on state legislation of interest to the City.

This item is for information, discussion, and possible action.

Backup included in Council packet/City Clerk's Office.

Action Taken: Karen Peters, Government Relations Director introduced the item with John Wayne Gonzales, Management Assistant.

Mr. Gonzales introduced HB2396.

Vice Mayor Johnson motioned to support HB2396. Councilman Simplot seconded the motion which passed 8:0.

Mr. Gonzales introduced SB1306.

Vice Mayor Johnson motioned to opposed SB1306 in its current form. Councilwoman Williams seconded the motion which passed 8:0

Mr. Gonzales introduced SB1313 regarding the definition of intersections with traffic control devices.

Vice Mayor Johnson asked how the term “zone” was defined in the bill’s language. Mr. Gonzales responded that there were several definitions provided in the bill’s language because there was not a uniform system across jurisdictions or intersections.

Vice Mayor Johnson motioned to oppose SB1313. Councilwoman Williams seconded the motion which passed 8:0.

Mr. Gonzales introduced SCR1029.

Vice Mayor Johnson motioned to oppose SCR1029. Councilwoman Williams seconded the motion. The motion passed 6:2 with Councilmembers Waring and Gates opposing.

Mr. Gonzales introduced HB2606 that would automatically give a liquor license to a business if a City does not provide a formal recommendation to the State Liquor Board.

Councilman Waring asked if the City always provided a recommendation on liquor licenses. Mayor Stanton responded that the City Council could have a no decision on a liquor license but it has rarely occurred.

Councilman Waring asked how the bill would change the process. Mr. Gonzales responded that if the bill became law, with a no decision, City Councils would be the final approver of liquor licenses. He added the bill would also limit the fees a City could charge to recover the costs for processing the liquor licenses.

Councilman Waring suggested the Council allow more time for staff to work with the bill’s sponsor on adjusting the bill’s language before making a decision.

Vice Mayor Johnson motioned to oppose HB2606 in its current form. Councilwoman Williams seconded the motion.

Councilman Gates explained he would vote yes on the motion because he believed the public should not bear the costs of processing the licenses.

The motion passed 7:1 with Councilman Waring opposing.

Mr. Gonzales introduced HB2748 which would require reciprocity between cities for a licensed alarm installer.

Mayor Stanton asked if there were cities with less stringent background requirements. Mr. Gonzales responded yes because some cities have fewer resources.

Councilman Simplot asked if it was possible to ask the bill’s sponsor to change the language. Mr. Gonzales responded that there was ongoing discussion with the bill’s sponsor regarding language adjustments.

Councilman Simplot motioned to oppose HB2748 as written. Councilwoman Williams seconded the motion. The motion passed 6:2 with Councilmembers Waring and Gates opposing.

Councilwoman Williams asked if the bill extended the reciprocity to cities within the State or across the country. Mr. Gonzales stated he believed the intent was for just Arizona cities.

Ms. Peters introduced SCR1025 which would refer to the voters the question of limiting the annual assessed valuation growth on property.

Vice Mayor Johnson motioned to oppose SCR1025. Councilwoman Williams seconded the motion.

Councilman Gates stated he would be voting no on the motion because of concerns with weighing in on bills intended to go to the ballot.

Mayor Stanton requested clarification on the impact of the bill. Finance Director, Jeff DeWitt responded the City would have to indefinitely postpone the $150 million in bonds it put on hold until the economic recovery began. He added the caps on assessed valuation outlined in the bill would limit the City’s ability to recover its tax base when the market recovers and could have an impact on the City’s AAA credit rating.

Motion to oppose SCR1025 passed 6:2 with Councilmembers Waring and Gates opposing. Ms. Peters introduced HB2815 which would establish a universal regulatory tax credit allowing businesses and individuals to claim a tax credit as a result of claims they suffered excessive regulation.

Councilwoman Williams asked how the bill defined excessive. Ms. Peters responded the definition for excessive was very broad and vague.

Councilman Nowakowski left at 3:30 p.m.

Councilwoman Williams asked if the bill enabled the State Department of Revenue (DOR) to make the full determination of what constituted excessive regulation. Ms. Peters responded yes, full determination would go to the DOR.

Vice Mayor Johnson motioned to oppose HB2815. Councilwoman Williams seconded the motion which passed 6:1 with Councilman Waring opposing.

Councilman Nowakowski returned at 3:33 p.m.

Ms. Peters introduced SB1239 which would prevent cities or counties from requiring homeowners associations (HOAs) as part of a subdivision regulation or zoning ordinance.

Councilman Waring asked how the City handled the maintenance of common areas and retention basins prior to the establishment of HOAs. Ms. Peters responded that if the developer was interested in setting aside land for common areas, they could offer it to the City to dedicate as a park and take on the maintenance.

Councilman Waring asked who would maintain the land if the City said no to accepting it for use as a park. Derek Horn, Assistant Planning and Development Director, responded there were examples when the City would make basic improvements to areas abandoned by HOAs to ensure public safety.

Mayor Stanton requested further information on how common areas and retention basins were maintained without an HOA.

Councilman Waring expressed concern with having no plan in place in case the bill was to become law. Mayor Stanton responded that his concerns were reasonable but also noted the bill was an example of preemption.

Councilman Simplot noted that Home Owner’s Associations were created as the developer’s mechanism for maintaining the subdivision.

Councilman Waring expressed concern with mandating residents to belong to an HOA in order to purchase a new home.

Vice Mayor Johnson motioned to oppose SB1239. Councilwoman Williams seconded the motion. The motion passed 6:2 with Councilmembers Waring and Gates opposing. Ms. Peters introduced HB2363.

Vice Mayor Johnson motioned to support HB2363. Councilwoman Williams seconded the motion which passed 8:0.

Ms. Peters introduced SB1289.

Vice Mayor Johnson motioned to oppose SB1289. Councilwoman Williams seconded the motion which passed 7:1 with Councilman Waring opposing.

Ms. Peters stated that SB1453 had recently been amended to address Salt River Project and the City’s concerns, so a position from the City Council was no longer requested.

Ms. Peters introduced HB2416.

Councilwoman Williams motioned to oppose HB2416. Councilman Simplot seconded the motion which passed 7:1 with Councilman Waring opposing.

Ms. Peters introduced SB1470 which would impose data quality requirements on information disseminated by the City. She added the requirements outlined in the bill were vague and included peer review and reproducibility.

Councilman Waring requested further information on what the bill would do if passed. Mayor Stanton responded the bill’s language mirrored requirements imposed by Congress. Ms. Peters added the requirements would apply to every study whether they be conducted in house or by the private sector.

Mayor Stanton expressed concern that imposing stricter requirements on studies by the private sector could have unintended consequences.

Councilman Waring stated he was surprised about the concerns expressed with imposing the requirements to ensure a high quality standard of studies and reports.

Vice Mayor Johnson motioned to oppose SB1470. Councilwoman Williams seconded the motion.

Vice Mayor Johnson noted the studies that have gone before the City Council included input from peer groups and citizens.

The motion to oppose passed 7:1 with Councilman Waring opposing.

Ms. Peters introduced SB1505.

Vice Mayor Johnson motioned to oppose SB1505. Councilwoman Williams seconded the motion. The motion passed 6:2 with Councilmembers Waring and Gates opposing. Ms. Peters introduced HB2570 which would require Cities and Towns to have three separate readings at three separate meetings before approving ordinance changes. She added that discussions were ongoing with the bill’s sponsor to modify the language.

Mayor Stanton asked if the sponsor’s intent was to increase transparency and allowing more time for the public to review. Ms. Peters responded yes.

Mayor Stanton asked if there are other cities that conduct three readings at three meetings. Ms. Peters responded that she was aware of cities who conduct two readings during two meetings, but no examples of more than that.

Councilman Gates asked if Subcommittee or Village Planning Committee meetings could count towards the three meetings required in the bill. Ms. Peters responded the bill required three meetings of the governing body.

Mayor Stanton stated he supported the concept of multiple readings and meetings to increase transparency, but would not be supporting the bill as written because of preemption.

The motion to oppose SB1505 passed 7:1 with Councilman Waring opposing.

Ms. Peters introduced HB2826 which would require municipal elections to occur in the fall during even numbered years.

Councilman Waring asked why the City did not take a position on the bill during the Subcommittee hearing. Ms. Peters responded that staff was following Council’s direction to monitor the bill and would not sign in until given further direction.

Vice Mayor Johnson motioned to oppose HB2826. Councilwoman Williams seconded the motion. The motion passed 6:2 with Councilmembers Waring and Gates opposing.

Councilman Waring requested an update on the progress on imposing surcharges on some criminal offenses. Ms. Peters responded given Council’s direction, staff had drafted an amendment. She added the first sponsor staff approached declined amending their bill. Ms. Peters stated that staff was approaching another sponsor and would brief the Council with the result.

Councilman Waring expressed concern with not having a bill and sponsor lined up yet.

Mayor Stanton clarified the City was looking for a bill to be a striker vehicle. Ms. Peters responded he was correct.

Vice Mayor Johnson requested to see the language of the bill that would be used prior to the strike only amendment.

Councilman Gates left at 4:10 p.m. Mayor Stanton clarified during a prior Policy Session Council gave staff direction to develop an amendment with broad language that would give the City the authority to impose surcharges in amounts to be decided later by the City Council.

Councilman Gates returned at 4:12 p.m.

Mayor Stanton requested clarification from staff at a future policy session about the cost recovery that would be seen if surcharges were successfully imposed on misdemeanor offenses as well as the impact the mandates passing through the state legislature would have on the City’s budget.

Vice Mayor Johnson left at 4:15 p.m.

ESTIMATED 4. 3:30 P.M.- GENERAL PLAN UPDATE Staff: Krietor, Stark (Presentation 20 min.)

This report provides information to the City Council in regards to the General Plan Update.

This item is for information only. No City Council action is required.

Backup included in Council packet/City Clerk's Office.

Action Taken: Councilman Waring and Councilman Gates left at 4:16 p.m.

Deputy City Manager David Krietor introduced the item with Derek Horn, Assistant Planning and Development Director and Josh Bednarek, City Planner presenting.

Councilman Simplot left at 4:17 p.m.

Mr. Bednarek described the project’s history which included visioning workshops, collaboration with Arizona State University, Citywide workshop, and City Council direction and resulted in the development of three focus areas and ten guiding principles.

Councilman Simplot and Vice Mayor Johnson returned at 4:20 p.m.

Councilman Nowakowski left at 4:20 p.m.

Mr. Bednarek described the tasks and opportunities for 2012 which included engaging Mayor and Council and Village Planning Committees with the General Plan update, and increasing public involvement in the process moving forward. Mr. Bednarek described the project outline moving forward which focused on visioning by March 2012, policy by December 2012, and mapping by December 2013.

Mayor Stanton left at 4:22 p.m. and Quorum was temporarily lost. Councilwoman Williams thanked staff for their assistance in engaging residents living in north Phoenix to express their ideas for the I-17 corridor north of the Loop 101.

Mayor Stanton, Councilman Gates, and Councilman Waring returned at 4:23 p.m. and Quorum was regained.

Vice Mayor Johnson and Councilman Valenzuela left at 4:23 p.m.

ESTIMATED 5. 3:50 P.M.- ECONOMIC DEVELOPMENT Staff: Krietor, Chan STRATEGIC PLAN (Presentation 20 min.)

This report requests City Council approval of an Economic Development Strategic Plan for the City.

This item is for information, discussion, and possible action.

Backup included in Council packet/City Clerk's Office.

Action Taken: Deputy City Manager David Krietor introduced the item with John Chan, Community and Economic Development Director and Ioanna Morfesis, President, IO. Inc.

Councilman Waring left at 4:27 p.m.

A video presentation included the strategic vision for the department, overview of the City’s core strengths, and targeted industry sectors.

Councilman Simplot left at 4:28 p.m. and Quorum was temporarily lost.

The video presentation continued by describing the department’s strategies for economic development, operational structure, business retention and expansion, business attraction, small business, workforce development, and community development.

Vice Mayor Johnson and Councilman Waring returned at 4:30 p.m. and Quorum was regained.

The video presentation continued by outlining the department’s ten key priorities which included implementing a California Economic Development Strategy, opening a Phoenix Workforce Business and Training Center, promoting Phoenix for International Business Trade and Investment, and streamlining the City’s regulatory processes.

Councilman Simplot returned at 4:31 p.m.

Councilwoman Williams left at 4:31 p.m.

Mr. Chan stated it was an exciting time for CED with all of the changes outlined in the strategic plan. Mayor Stanton noted the importance of having an economic strategic plan.

Councilwoman Williams and Councilman Valenzuela returned at 4:33 p.m.

Councilman Gates thanked David Cavazos for his leadership in implementing the Citywide Strategic Plan and department level strategic plans. He stated the economic development strategy was the key to enhancing the business climate and streamlining the development process.

Councilwoman Williams thanked staff for developing a meaningful plan.

Councilman Valenzuela left at 4:34 p.m.

Councilman Simplot expressed his support for the strategic plan.

Councilman Valenzuela left at 4:35 p.m.

Vice Mayor Johnson motioned to accept the Economic Development Strategic Plan. Councilwoman Williams seconded the motion.

Councilman Simplot left at 4:37 p.m.

Ms. Greta Rogers expressed concern about how the City attracts businesses and the video presentation’s depiction of the strategic plan. She recommended the City implement a 10 year plan in five year increments and consult with Chandler and Tempe in its development. Ms. Rogers stated the City should acquire and designate areas along major transportation arteries to develop industrial and manufacturing employment centers.

Councilman Valenzuela returned at 4:39 p.m.

The motion passed 6:0.

ESTIMATED 6. 4:10 P.M.- PHOENIX SKY HARBOR Staff: Krietor, Murphy INTERNATIONAL AIRPORT (Presentation 20 min.) UPDATE

This report updates the Phoenix City Council on recent passenger and airline activity, and the current status of various construction projects at Phoenix Sky Harbor International Airport.

This item is for information only. No City Council action is required.

Backup included in Council packet/City Clerk's Office.

Action Taken: Councilman Waring and Councilman Valenzuela left 4:42 p.m. Deputy City Manager David Krietor introduced the item with Danny Murphy, Aviation Director, Tamie Fisher, Assistant Aviation Director, and Chad Makovsky, Acting Assistant Aviation Director.

Councilman Valenzuela returned at 4:43 p.m.

Ms. Fisher stated there have been 12 consecutive months of increased passengers at Sky Harbor in 2011, which equated to a 5.3% increase compared to 2010. Ms. Fisher also discussed the 2 Terminal 4 Food and Beverage contracts which are expected to produce more than $120 million of gross sales during the first year of operations, yielding revenue to the city of more than $15 million. Ms. Fisher also described the new signs at the airport.

Councilman Waring returned at 4:45 p.m.

Mr. Makovsky described the recent closure of the North Runway to make necessary repairs and improvements. Mr. Makovsky also described the progress on constructing Phase I of the Sky Train. He stated upon completion, the 44th Street Sky Train Station would include a cell phone lot and remote baggage check-ins with a couple of the airlines.

Councilman Valenzuela thanked staff for accommodating him and his staff during a recent visit to the Sky Train construction site.

Mayor Stanton thanked staff for the report.

ESTIMATED 4:50 P.M. – ADJOURNMENT

Mayor Stanton adjourned the meeting at 4:59 p.m.

For further information, please call the Management Intern, City Manager's Office, at 602-262-4449.

For reasonable accommodations, call the Management Intern at Voice/602-262-4449 or TTY/602-534-5500 as early as possible to coordinate needed arrangements. Si necesita traducción en español, por favor llame a la oficina del gerente de la Ciudad de Phoenix, 602-262-4449 tres días antes de la fecha de la junta.

PHOENIX CITY COUNCIL MEMBERS

Councilman DiCiccio Councilman Gates Vice Mayor Johnson Councilman Nowakowski Councilman Simplot Councilman Valenzuela Councilman Waring Councilwoman Williams Mayor Stanton CITY COUNCIL REPORT

GENERAL INFORMATION

TO: Mayor And Council PACKET DATE: March 1, 2012

FROM: David Cavazos City Manager SUBJECT: FOLLOW-UP: FEBRUARY 29, 2012 FORMAL CITY COUNCIL MEETING

Attached are the February 29, 2012 Citizen Requests/Comments. CITIZEN REQUESTS/COMMENTS CITY COUNCIL FORMAL SESSION February 29, 2012

Mr. Luis Acosta Mr. Acosta expressed concern with perceived mismanagement, non-compliance, and safety concerns regarding the Graffiti Buster employees in the Neighborhood Services Department.

FOLLOW-UP: Miller, Hallett CITY COUNCIL AND CITIZEN REQUESTS Unanswered as of February 29, 2012

CITY COUNCIL INFORMATION REQUESTS

DATE AND COUNCIL DUE INFORMATION REQUESTS ASSIGNED TO PERSON DATE

There Are No Council Requests At This Time

______

CITIZENS REQUESTS

REQUEST DATE AND ASSIGNED REQUEST DUE DATE NAME OF CITIZEN TO Mr. Acosta expressed concern with perceived mismanagement, non- compliance, and safety Mr. Acosta concerns regarding the 3/14/12 Miller, Hallett February 29, 2012 Graffiti Buster employees in the Neighborhood Services Department.