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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 1/16/2001 * PLEASE NOTE: Since the Glendale City Council does not take formal action at the Workshops, Workshop minutes are not approved by the City Council. MINUTES CITY OF GLENDALE CITY COUNCIL WORKSHOP January 16, 2001 1:30 p.m. PRESENT: Mayor Scruggs, Vice Mayor Eggleston, and Councilmembers Clark, Frate, Goulet, Lieberman, and Martinez. ALSO PRESENT: Martin Vanacour, City Manager; Ed Beasley, Assistant City Manager; Rick Flaaen, Acting City Attorney; and Pamela Oliveira, City Clerk. 1. FISCAL YEAR 2002-2011 CAPITAL IMPROVEMENT PLAN CITY STAFF PRESENTING THIS ITEM: Mr. Charlie McClendon, Management and Budget Director; and Ms. Sylvia Forry, Budget and Research Analyst. As part of the annual budget process, the City Council adopts a capital improvement budget, consisting of improvements such as City buildings, streets, water and sewer lines, and parks. The Capital Improvement Plan (CIP) process has been revised to provide the Mayor and City Council an earlier opportunity for input, discussion, and prioritization of the projects within the plan. Due to growth in assessed valuation, there is an estimated $8 million in additional capacity for capital projects in Fiscal Years 2001- 02 through 2004-05. In year five of the capital plan, Fiscal Year 2005-06, an additional $13.5 million is available for new projects. The purpose of today's workshop was to receive Council priorities for projects for Fiscal Years 2002-2011. Budget staff presented the revised process schedule to the Mayor and City Council at the November 16, 2000 Goal-Setting Session and the November 21, 2000 Council Workshop. Throughout the CIP public hearing process, public notices will be posted in accordance with the Open Meeting Law and City policies. The total Fiscal Year 2000-01 CIP budget is $96,640,498. The Fiscal Year 2001-02 CIP budget is currently in development. The recommendation was to review the available capacity and priorities for CIP projects and provide staff direction. Budget staff will work with the Management Team to develop the Fiscal Year 2002-11 CIP, based on input received from the City Council. 1 In response to Councilmember Clark's question, Mr. McClendon reported a total assessed valuation of $876 million. Mayor Scruggs asked if any of the collections for the water and sewer service go to General Obligation Bond debt for water and sewer projects. Mr. McClendon said General Obligation Bonds were the financing source used on some outstanding debts in the water and sewer fund. He explained that, in those cases, they do not use the secondary property tax to repay the debt - they use water and sewer rates. Mayor Scruggs asked if they would issue any more General Obligation Bonds for water and sewer projects. Mr. McClendon said the plans do not call for any because they have exhausted most of the General Obligation authority that existed in water and sewer. Mayor Scruggs asked if revenue bonds are tracked the way other bonds are. Mr. McClendon confirmed that they are tracked and that they plan exactly what future debt payment will be. He said it is somewhat more difficult with regard to water and sewer because the water and sewer rate structure is influenced not only by the debt payment, but also by the capital projects they are paying for through cash and the systems operating costs. He said the amount dedicated to retiring revenue bonds fluctuates because they also have a fluctuating component in the cash capital component and the amount of fund balance they are able to use each year. He said, however, they watch it closely and it is an important part of analyzing where the fund needs to be and what needs to happen in the future. Councilmember Clark asked if staff predicates the City's ability to pay back bonds with future rate increases when they plan major projects. Mr. McClendon stated that the long-range projections allow them to put in assumptions in terms of what the capital requirements will be and the way in which they finance it. He said they could then tell if a rate adjustment would be necessary. Councilmember Clark asked if the Council is told whether a rate increase is built in or not at the time they consider approval of major water projects. Mr. McClendon said it is his intent to discuss with the Council not only the capital requirements of the fund, but any possible implications. Mr. Lynch explained that when they get ready to do the bond sales, they look at revenue and coverage requirements at least one year into the future to make sure they have enough reserve amounts available to cover any unanticipated items. Councilmember Clark noted their CIP budget looks five years into the future. Mr. Lynch said they actually do projections out through 2010 on debt service or however far out the bonds go. He noted they have $8,175,000 in principal amount of the General Obligation water and sewer debt. He said they look at the existing and projected revenues, as well as current and proposed debt service when determining what the water entity can afford. Councilmember Clark asked, when they flag a project, if they note a shortfall and determine a rate increase will be necessary. She also asked if that information is given to the Council when they are making their decision on a project. Mr. Lynch explained that they note shortfalls and times when there is extra revenue. He stated that the rate study would be brought to the Council separately. Councilmember Clark stated that they need to see the totality of the picture when deciding whether to approve a project. Mr. McClendon said they have a plan to bring that kind of comprehensive picture to the Council. Councilmember Clark stated that she appreciated the fact that they will bring information together, marrying both components. Councilmember Lieberman asked if revenue projections on General Obligations funds take into account fluctuations in the economy. He explained that a recession might make it difficult to repay. Mr. McClendon stated that revenue projects are based on assessed valuation, starting with the current assessed valuation and adding a projected moderate growth each year. He said, over time, it has proven to be an accurate way of 2 calculating those projections. Councilmember Lieberman asked how they covered their General Obligation debt during the last recession. Mr. Lynch explained that they not only used the assessed valuation as a measure, but had a component of fund balance maintained for emergency shortfalls. Councilmember Martinez said he remembered hearing about projects that were delayed during the last recession and asked if there would be an opportunity to make necessary adjustments if a recession should occur again. Mr. McClendon agreed that this happened during the early 1990's. He explained that they did not take on any new debt and, instead, deferred and delayed existing projects until the economic indicators started recovering. Councilmember Goulet said it would be prohibitive to base a project of any size on what might be perceived as a future raise in rates and emphasized that the City does not do it that way. Mayor Scruggs asked if the amount dedicated to debt service goes in as a constant when the CIP projects are formulated. Mr. Lynch stated that the debt service on bonds is based only on the current level of debt service and current rates being charged. He said future projections allow the City time to react or respond to issues that may come up. Mayor Scruggs explained that, if the Council knows ahead of time that a project would lead to a rate increase, it might not let the project work its way through the CIP process. Mr. McClendon said past rate calculations and planning processes have not started with the assumption that a certain percentage of the rate would go towards debt; however, that could be done in the future. He said they plan on building the process so that this kind of information is brought to Council. Councilmember Clark asked if the estimated assessed valuation of $8 million in additional capacity was their moderate estimate. Mr. McClendon expressed his opinion that it was a good estimate, based on what they think is logical and reasonable to expect to happen in the economy. He said, however, that if the assessed valuation growth again exceeded estimates, the plan would be revised next year. Airport Projects Councilmember Clark asked why the $2.9 million and $1 .4 million set aside for Airport projects had been moved back to Fiscal Year 2007-11. Mr. Tim Ernster, Deputy City Manager, explained that they have tentative approval for approximately $1 million in grant funds for the next fiscal year which would be used towards strengthening and widening the runway. He stated that the next step in the process would be to receive funding to extend the runway on the west side of the runway to match the existing runway. He said the eastside taxiway and the taxiway stubs and aprons should really be in Fiscal Year 2004-05. He said they currently do not have funding secured for the runway extension or the east taxiway. Councilmember Clark asked if they would have better information when they bring the final CIP back to Council. Mr. Ernster stated that they would. CIP Grants Projects Councilmember Clark asked for an explanation as to why the Congestion Mitigation & Air Quality (CMAQ) grant amount for Fiscal Year 2001-02 had increased. Mr. Jim Book, Transportation Director, explained that they apply for CMAQ grants on an annual basis and have actually gotten a number of different projects. He stated that they had 3 asked them to aggregate for the City and, if possible, move the project forward. Mayor Scruggs asked Mr. Book what signal computerization would allow the City to do. Mr. Book explained that they are designing and building a backbone system that would include Glendale Avenue from 43ru Avenue t9 the Freeway, 59`h Avenue from Camelback to Bell Roads, and Bell Road from 83ru to 51st Avenues. He said one of the million dollar grants is for a traffic management center and the City is co-locating t1.11 with the Emergency Operations Center located at Fire Station No. 157, 9658 North 59 Avenue. He said their initial program is to have cameras at intersections every two miles. He noted that co-locating with the Emergency Operations Center would extend camera capabilities to the Fire Department in emergency situations. He said, from the backbone streets, they expect to extend and ultimately connect all signals. He noted that the City has secured another CMAQ grant for Fiscal Year 2006 for approximately $900,000. He said the purpose of that grant is to tie the north end of the freeway system together. Mayor Scruggs asked if the traffic management system would alter the signal timing when situations arise. Mr. Book explained that real time monitoring allows for signal timing changes when incidents occur, as well as event planning, to assist with traffic flow during major events. He stated that the system would also allow them to better interface with the City of Phoenix. He explained that the City currently has to go out and open the cabinets at each intersection to alter timing every time the City of Phoenix makes a change to its timing from its computer console. Cultural/Historic Projects Councilmember Lieberman expressed his appreciation for the $13 million set aside for Fiscal Year 2007-11 . He stated that he would like to see some money put into cultural projects this year to build a stage for the Civic Center or to work on the church which the City owns. Councilmember Goulet asked if an inventory had been done, identifying homes or properties deemed as historic. Mr. McClendon said no specific locations or properties were identified when the Bond Committee worked on it. He stated that he did not know if the Planning Department or anyone else has done an inventory since then. Councilmember Martinez asked why project locations had not been identified. Mr. McClendon stated that, in many cases, specific sites are not identified, particularly on projects that are planned far out in the future. He stated that staff would work with the Council during the interim to determine the appropriate location for a project. Economic Development Projects Councilmember Clark asked if they currently had any money available for economic development and, if so, how much. Mr. McClendon stated that there was $1 million of Economic Development bond money in the current year of the Capital Plan, as well as the Opportunities Fund established by the City Council. Mr. Jim Colson, Economic Development Director, stated that specific projects had not been identified for those funds. He explained that their intent was to invest that money for use as an incentive in getting companies to locate in the City of Glendale. Councilmember Clark asked what form that incentive would take. Mr. Colson said they had not limited the form which the incentive could take. He explained that it would be identified based on the needs of the project. 4 Councilmember Clark asked if they were completing an infrastructure assessment of the western area. She explained that it was her belief they may need to allocate some CIP funds to implementing that assessment. Mr. Ernster said they had a number of studies in place to evaluate the infrastructure of, not only the west side, but, the entire community as well. Mr. Anderson noted that water and sewer infrastructure needs were addressed in the memo which was presented to the Council by Mr. Ernster. He said they would determine depth of sewer and adequacy of water resources to allow for the intended growth. Councilmember Clark asked if a telecommunications assessment had been done. Mr. Colson said they had worked closely with fiber providers in the area to identify main hubs and what would be available. He stated that specific decisions regarding the location of fiber could not be done, but they had tried to identify where major hubs would be needed. He said they had concluded that they could get fiber to a user within 90 days. Councilmember Lieberman expressed his opinion that project 9607 should be moved forward by at least five years to be able to manage and support the infrastructure that will happen along the Loop 101 and Glendale Avenue. He suggested trading some of the money reserved for the Field Operation Complex. Mayor Scruggs agreed that the project should be moved up, although not necessarily as early as Councilmember Lieberman had suggested. Councilmember Clark also agreed. She explained her position that when the Council approves the Western Area Plan this year, it would send a signal that the City is encouraging development in the area and she wants to know that a minimum amount of infrastructure is in place to accommodate that development. Mr. McClendon explained that all projects for which they have not received specific direction from the Council show up in the second five years. He said they would move it up, in whole or in part, if directed to do so by the Council. Councilmember Clark stated that they did not know how much should be moved forward because they did not know how much was needed. Councilmember Goulet stated that they would also have a recommendation from the Citizen's Committee about the future downtown growth and redevelopment. He said citizens have asked whether adequate funding would be available to support those recommendations. He asked if the City was poised to respond to those recommendations in a timely manner. Mr. Colson said technical advisory groups have identified specific initiatives or potential projects, including costs and potential sources of funds. He stated that no projects could go forward until a funding source and the impact on the City budget have been identified. Mayor Scruggs stated that some funds would be available. She noted that $4.2 million which was set aside in last year's CIP had not been used. Mr. McClendon reported that those funds are in a Streets and Parking fund, in an account labeled Downtown Urban Design Plan. He noted that the use of this money would have to be compatible with the Streets and Parking bond language. Councilmember Lieberman expressed his opinion that the City should hire a consultant to draw plans for developing the Loop 101 area. 5 Mayor Scruggs asked if a consultant was looking at the Loop 101 corridor. Mr. Colson stated that they had hired a consultant, who looked at capacity for development in the area. He said they had identified major uses and were working to determine the next step. Councilmember Martinez agreed that money needs to be moved up with regard to the Loop 101 corridor. Mayor Scruggs directed staff to work on moving up the Loop 101 corridor development. Vice Mayor Eggleston asked staff to educate itself on fiber optic possibilities in the area. Mr. Colson said they had identified a couple of factors that have a significant impact on whether a company chooses to site in a geographic territory. He explained that the first factor is the availability of labor and the second is the availability of infrastructure, with fiber optics being one of the most important. He said they were comfortable that they have the major hubs available to meet a company's needs. Flood Control Projects Mayor Scruggs asked for confirmation that flood control was only short $1 .1 million. She stated that they had asked for the entire $8 million available in General Obligation funds for Bethany outfall at the first budget retreat in November of 2000. Mr. McClendon said, since then, Mr. Grant Anderson, City Engineer, was able to negotiate with the Flood Control District and move money from other existing flood control projects, to bring the amount needed down to $1.1 million. Mr. Anderson explained that the Bethany Home Outfall project was the last of the remaining major outfalls. He stated that the $1.1 million was necessary to match what the Flood Control District would need to meet their Board of Supervisor's requirements for an intergovernmental agreement. He stated that $1 .7 million was needed in the fifth year for the repayment due at that tjme. He said the City of Glendale's total need for the Bethany Home Outfall from 75t" Avenue to New River was slightly less than $10 million, spread over those five years. He said that represents less than one-third of the total cost of the outfall itself. He said they have moved monies from other flood control projects to ensure the outfall is built first, with the pipes to connect to the outfall being built in future years. Mayor Scruggs voiced Council's approval of allocating the additional $1 .1 million. Government Facility Projects Vice Mayor Eggleston said he was unaware of the operating impact of rebuilding the Field Operations Center. Mr. McClendon explained that anything in the second five years usually reflects five years of operating impacts, making the annual cost one-fifth of that amount. He explained that later phases of the project involve bringing in elements that have not previously existed or are much larger than what previously existed; therefore operating costs are more significant. Mayor Scruggs asked if decisions were based on departments that have the most difficulty operating under their present environment. Mr. McClendon said it was his understanding that they were. 6 In response to Vice Mayor Eggleston's question, Dr. Vanacour explained that the office complex would house Public Works, Utilities, Parks and Recreation, and other departments. He stated that the Financial Center would not accommodate those kinds of needs. Open Space Trails Projects Councilmember Frate said he would like to see money set aside to implement improvements identified in the Thunderbird Paseo study. Mr. McClendon explained that the Thunderbird Paseo Soccer Field project would partially address some of the issues because it would dqvelop some green space in the bottom of Paseo between Thunderbird Road and 67t" Avenue. He said full landscaping might require bringing water in, turning it into a more expensive project with possible water fund implications. He said a lot would depend on what the study recommends. Mayor Scruggs asked how water would be brought to the soccer fields. Mr. McClendon stated they would use the same system that exists further down the field. He said the best way to handle water implications would be to bring the recommendations forward as part of the more comprehensive review of the water system. Mayor Scruggs noted that this was the second year they have had improving Thunderbird Paseo as a Council goal. She said she shared Councilmember Frate's concern that money needs to be available to implement the recommendations made by the study. She suggested setting aside $250,000. Dr. Vanacour said he would suggest that more be set aside because they know that they will have to import water. He suggested setting aside a minimum of $500,000. Councilmember Lieberman asked if water was being provided to Thunderbird Paseo from the Arrowhead Waste Water Treatment Plant. Mr. Anderson explained that all of the Arrowhead affluent was currently used in the Arrowhead area. Councilmember Lieberman asked if they had, at one time, considered watering the freeway, as well as Thunderbird Paseo, with reclaimed water from that facility. Mr. Anderson said part of the landscaping for the Loop 101 was included in the Master Plan; however none of the Master Plans that the original developer took over included Thunderbird Paseo. Councilmember Frate asked for confirmation that the $500,000 would be set aside this year. Mayor Scruggs stated that it would be set aside in Fiscal Year 2001-02. Park Projects Councilmember Clark asked what the $500,000 which was budgeted for the Western Area Regional Park would accomplish. Mr. Warren Smith, Parks and Recreation Director, explained that the $500,000, together with an additional $400,000 in carry over from bonds and an additional $400,000 in carryover from Development Impact Fees (DIF), would be used for improvements to the 88-acre park. Councilmember Clark asked if, after the $1.3 million in improvements were made, the park would begin to look like a park. Mr. Smith stated that it would. He noted that they were in the process of hiring a consultant to design the site. He said they would determine what exactly could be done with the $1.3 million once the site plan has been developed. Councilmember Clark noted that the park at 79th and Missouri Avenues has been dropped. Mr. Srrath explainpd that they acquired 22.6 acres from developers in thq area between 75 and 83ru Avenues, with a nine-acre neighborhood park at 75t" Avenue and Camelback Road and 2.5 acres of a developed parkland at 79th and 7 Missouri Avenues. He said they hoped to purchase an additional three acres from the Berry property. He said they betleved those acquisitions would satisfy the neighborhood park development for 79t" and Missouri Avenues. Councilmember Clark asked if there were any plans to install park equipment to satisfy the concept of a neighborhood park. Mr. Smith said Flood Control will hold public meetings and determine what the neighborhood would like to see at the parks. He confirmed that money had been set aside for the Grand Canal/Regional Park development. Councilmember Clark asked Mr. Smith if he was comfortable with the fact that the amount of. funds available for the Western Regional Park Development/Grand Canal Linear/79t and Missouri Avenues park infrastructure would allow the City to move toward developing it as usable space. Mr. Smith said they had sufficient funds to make a significant statement in terms of the Grand Canal/Linear Park project. Councilmember Lieberman asked where the north area pool would go. Mr. Smith said it would go at the Foothills Park Phase II site at 57" Avenueand Union Hills Drive. Councilmember Martinez asked if the $5 million originally set aside for the north multi- generational facility was still sufficient. Mr. Smith stated that he had been directed to do a value engineering of that project to ensure that the amount was still adequate. Mayor Scruggs said the west multi-generational facility needs to have its operating impact raised to at least equal the north facility, if not exceed it. Councilmember Goulet asked what money was currently available for renovations to the community center. Mr. Smith said approximately $75,000 was awarded in a community development block grant fund and they were in the process of completing a feasibility study to determine opportunities for improvement of the building. Councilmember Goulet asked when the feasibility study would be completed. Mr. Smith said it had been taken to the Parks and Recreation Commission for input. Councilmember Goulet asked if it was possible that they would need to have monies available to do some improvements this year. Mr. Smith said the Community Development Block Grant (CDBG) funds have to be used within two years. He stated that, once they receive the actual costs from the feasibility study, they need to identify the additional amount of money required. Mayor Scruggs suggested that they put money aside in Fiscal Year 2001-02 as a placeholder. Mr. Smith said the feasibility study initially showed it would cost from $462,000 to $520,000. Mayor Scruggs asked to have $500,000 set aside in Fiscal Year 2001-02. Councilmember Clark asked if money could be moved up for development of the soccer complex at 71st and Orangewood Avenues. Mr. Smith noted that there was a total of $750,000 for that site in Development Impact Fees (DIF) in Fiscal Year 2003-04. He said those funds would be sufficient to develop a plan and possibly implement some improvements. Vice Mayor Eggleston mentioned the soccer field at 63rd and Northern Avenues. Councilmember Clark said this was the soccer field she had meant. Mr. Smith said they considered soccer fields at that location when the plan was first put together. He stated that, since that time, they had worked with the grant office and believed they may be able to develop that site as an outdoor adventure center. 8 Mr. Smith confirmed for Councilmember Goulet that the property had not yet been turned over to the City. He estimated that the time for it to be turned over to the City would be within the next couple months. Mayor Scruggs said the Sahuaro Ranch guest house needs to be renovated. He noted that the Historical Society utilizes the house, as well wedding parties and other visitors. She suggested that they build an actual visitors center, which would allow the Historical Society to move out of the guest house into a formal office, thus providing wedding parties with a place to get ready. She asked staff to determine the cost of a true visitor's center. The Council expressed their support of Mayor Scruggs' suggestion. Ms. Pam Kavanaugh, Deputy City Manager, updated the Council on the status of the Adult Center. She stated that, depending on the options chosen by the Council, it could result in a cost increase of $2 to $4 million. Mayor Scruggs asked if that would be part of the $8 million. Mr. McClendon stated that it would be. Dr. Vanacour said it might come in closer to the $2 million estimate. He stated that he had asked Mr. Art Lynch, Finance Director, to research what it would cost if it was financed over 15 or 17 years. Ms. Kavanaugh stated that she would bring the item back in February of 2001 . Councilmember Martinez asked if any progress had been made on acquiring land around the Foothills Park. Mr. Smith said he had attempted to contact the owner on several occasions and had asked Ms. Kris Luna, Property Manager, to do the same. He said they were told that the owner was in the process of discussing it with someone in the area who had a hold on the property. Councilmember Martinez said the property owner contacted him some time ago, indicating that he was interested in selling the property to the City. Councilmember Goulet said he would be supportive of spending more money for the Sands Park improvement and asked if additional land was available. Mr. Smith stated that a portion of the land would house the Sensory Park, with the required improvements coming out of the remainder of that land. Public Safety Prolects Mayor Scruggs expressed her opinion that the money set aside for purchasing land for the Court building in Fiscal Year 2002-03 was premature and should be moved back. Councilmember Martinez said the Council needs to consider that the land will be needed and prices will continue to go up. Councilmember Clark asked to hear from a judge on the issue. Ms. Jean Baxter, City Judge, said the purchase of land is not really a court issue. She stated that the Court's current facility is fully occupied and her position has been that it was her responsibility to plan for future needs. Councilmember Clark said she would support Mayor Scruggs' suggestion to move the money back. 9 Councilmember Lieberman asked why they did not use the two courtrooms in the Justice Court office building. Mr. Ken Reedy, Deputy City Manager, said their space study analysis concluded that the Information Systems (IS) Department needed to be moved outside of the building, yet be close enough to the Public Safety building to have access to the significant infrastructure located there. He said the Council had approved the design for the Information Systems building in December of 2000. He said it was more urgent to move Information Systems staff out of the building to accommodate growth. Councilmember Lieberman questioned whether that was the best usage of the building. He explained that very little money would have to be spent to use it as additional courtroom space. Mayor Scruggs asked if a professional had ever done a space study regarding expanding the court in the Public Safety building. Mr. Reedy said they had not done a complete space analysis of that facility. He stated that they should probably look at the entire public safety facility in the next year or two to figure out where they go next. Mayor Scruggs suggested that they could make better use of the space if it was redesigned. Dr. Vanacour stated that they could have an architect look at the Public Safety building. Vice Mayor Eggleston agreed that the land acquisition money for the court should be moved back. Councilmember Lieberman said he would like Project 8022 moved forward to this year or next because it is something that is needed immediately. Mayor Scruggs agreed. Councilmember Clark also agreed. Councilmember Goulet asked if the fiber optics were intended to aid solely in training staff or in facilitating notification of calls for service. Mr. Brooke Edwards, Fire Chief, stated that they were not ready to go online because some fire stations were not yet capable of receiving fiber optics. He said it was his understanding that it would be for the entire communications package. Mayor Scruggs asked if they had remodeled Fire Station 153. Mr. Edwards stated that they did. Mayor Scruggs noted that last year's Project 8556 had $1.1 million to accommodate expanded services, including the replacement of a ladder truck and increased staffing at Fire Station 153. She said they now have Project 8021 to remodel and upgrade three stations and purchase a ladder truck for the same $1.1 million. She asked how that worked. Mr. Mike Harrington, Acting Assistant Fire Chief for Essential/External Resources, said Project 8556 never occurred and they were trying to reallocate those funds to remodel several fire stations. Mr. Edwards said the project was placed in the budget and should be moved forward if the Council believed it was a worthy project. He acknowledged that the $1.1 million was probably inadequate to remodel all of the stations identified and purchase a new ladder truck. Mayor Scruggs asked for an indication as to the urgency in terms of the ladder truck. Mr. Edwards explained that the Insurance Service Organization (ISO) recommended that the City have three ladder trucks. He said they do not have a good facility to take care of the central area and have discussed different ways of accommodating ISO's recommendation, including the purchase of a quint or remodeling a station to accommodate a ladder truck. 10 Councilmember Lieberman asked for confirmation that the $1 .1 million set aside last year had not been spent. Mr. Edwards explained that the projects were moved forward. Mr. McClendon said that money had been reallocated to a different project this year. Councilmember Clark suggested that they move the $1.1 million up to Fiscal Year 2005-06. Mayor Scruggs and the Council agreed with Councilmember Clark. Vice Mayor Eggleston asked about the ongoing operating impact of the new fire station. Mr. Mcglendon stated his belief that, based on what he had seen being requested by the 83r Avenue and Bethany Home Road station for next year, they would have to increase that amount. He said the biggest cost for a fire station is the firefighters, engineers, and captains required to staff the station. He said maintenance costs, electricity, and other sundry items make up the rest of the costs. Street Projects Councilmember Clark asked if the sound wall project listed under Highway Users Revenue Funds (HURF) and the sound wall project under the General Fund were related. Mr. McClendon explained that, initially, the freeway sound walls and landscaping were a HURF project and were much smaller. He said, last year, the Council had asked them to look at ways to fully fund that project, so it was set up as a General Fund project funded through lease purchase financing. He said it no longer shows up as a HURF project because the elements that were part of that project are being completed as part of Phase I. Councilmember Martinez said he thought Project 8812 was underway. Mr. Anderson said the project currently underway goes from 71st to 73rd Avenues. He stated that they still have the complqtion of a collector frontage road and storm drain from 67th Avenue to approximately 701 Avenue. He said they hoped that development in the area would reduce that amount in the near term. Councilmember Clark asked if some money could be moved up to start Project 9568 this year. She explained that the road is dangerous to pedestrians because the curb, gutter and sidewalk are not in good condition. Mr. Anderson said they had been awaiting direction on those sections that do not have any curb, gutter or sidewalks. Mayor Scruggs noted that those funds would have to be moved from another project. Mayor Scruggs asked how they would widen 59th Avenue from Wescott Drive to Beardsley Road. Mr. Anderson explained that incomplete roads in that area need curb and gutter replacements. He said 59th Avenue also needs additional right turn lanes, full sidewalks, and landscaping improvements. He noted that there are many times of the day that the road does not handle the traffic load. Mayor Scruggs asked Mr. Anderson if he was comfortable with where that project had been placed in the budget. Mr. Anderson said the timeframe seems to work. Mayor Scruggs asked if they foresaw any improvements to the road coming from development. Mr. Anderson said he hoped so, but it would depend on the timing of development in the area. Mayor Scruggs expressed her opinion that the traffic situation near the Foothills post office has reached a hazardous level. 11 Councilmember Martinez said improvements to 59th Avenue from Westcott Drive to Beardsley Road need to be moved up because development of the Foothills Park is scheduled to start this year. Mr. Anderson said they would look at what could be done to provide safer pedestrian access to the new park. Mayor Scruggs asked about Project 9557. Mr. Anderson explained that last year's CIP indicated a project from Williams Drive to Pinnacle Peak Road; however, it was determined to be HURF Fund eligible and made to include Isabell Lane. He said the project is currently scheduled for Fiscal Year 2004-05. He noted that some development north of Williams Drive actually paid for some of the improvements that were originally in the capital plan. Mayor Scruggs said she was told by Mr. Anderson that Project 9570 should be removed. Mr. Anderson said this was correct. He explained that the Budget Department discovered they had submitted two projects. Mr. Book noted the Post Office switched its drop-off approach. Mayor Scruggs said people still cannot get into the parking lot causing traffic to back up onto 59th Avenue. Mr. Book stated they reviewed that site prior to construction and told the Post Office that was exactly what would happen. He said the Post Office accepted their comments, but chose not to take heed. Transit Projects Councilmember Clark asked why the Park and Ride facility was listed at $6 million last year and increased to $8 million this year. Mr. Book explained that they had used a ball park number when the project was originally placed in the budget. He said the budget was increased as the project became more site specific and the size was determined. He said the study originally called for the parking of 400 vehicles, which was increased to 800. Councilmember Clark asked if the increase was necessary. Mr. Book agreed that the increase might be optimistic. He said they could possibly use the same approach used by the Dreamy Draw facility. He explained that they chose to only implement the first half of the parking, with the second half contingent on use. Councilmember Clark asked if the facility would be designed to serve people in the northwest valley rather than all Glendale residents. Mr. Book stated that it would be. Councilmember Clark asked if there was any support from surrounding communities. Mr. Beasley reported that the Maricopa Association of Governments (MAG) had asked that the project be suspended until further information could be obtained regarding the best location for traffic. Councilmember Clark asked if that $500,000 had been freed up. Mayor Scruggs pointed out that the funds do not fully belong to the City of Glendale. Mr. McClendon explained that the City of Glendale has 20%, or $100,000, of that project. Dr. Vanacour said they might want to hold that money until they determine exactly what they will do. He explained that, if they turned the money back, they would not be able to show the matching funds required for the project. Councilmember Clark asked if they could look at reducing the number of parking spaces. Mr. Beasley said there would be an opportunity to talk about the location and additional capacity for parking. Councilmember Clark requested that MAG-related items be more fully narrated, especially those related to the City's budget. Councilmember Clark suggested having two 400-space parking lots rather than one 800-space parking lot. 12 Civic Center Protects Councilmember Clark asked why renovations and maintenance remain in Capital Improvements. Mr. McClendon said, by definition, Capital Improvement projects generally include major renovations and improvements to existing facilities. He said their other option would be to fund them through Government Facilities bonds; however, they are fully allocated at this time. Councilmember Clark said they had originally programmed $500,000 in Fiscal Year 2001-02 and $500,000 in Fiscal Year 2002-03. She stated that they reprogrammed the first $500,000, with $200,000 going to additional storage space and $300,000 going to landscaping and lighting. She asked if they would put an additional $500,000 in Fiscal Year 2003-04 for plaza enhancements or if they would be done with the remaining $500,000. Ms. Paula Ilardo, Marketing Director, explained that the $1 million original amount was optimistic and could not happen with the current number of structures in the downtown area. She said the $500,000 allotted for Fiscal Year 2004-05 would not be necessary because there would be no room left for storage facilities. Mayor Scruggs said they could use other funds if circulation could be improved to allow for additional improvements to the Civic Center. Mayor Scruggs stated that she was uncomfortable with waiting until Fiscal Year 2007- 2010 to include the maintenance reserve. She asked how they would fund routine maintenance of the facility prior to that time. Ms. Ilardo said they were currently using warranty money. She acknowledged that there was no long-term money for major repairs or changes in equipment. Councilmember Clark suggested that they reprogram the enhancement money from Fiscal Year 2002-03 into maintenance to start a maintenance reserve. Ms. Ilardo stated that the only reason they would need the enhancement money was if the courtyard and fountains project exceeded the $300,000 budgeted. Councilmember Clark recommended that they put $300,000 into maintenance reserve, keeping the remaining $200,000 programmed for enhancements should the courtyard and fountain project bids come in higher than expected. Mayor Scruggs asked Ms. Ilardo if there was any plan to start a maintenance reserve and preservation plan account. Ms. Ilardo said they were currently investigating what maintenance issues are covered by warranty and how much would be needed in a supplemental account. She acknowledged the need for a maintenance reserve of some amount. Councilmember Lieberman asked if they had set up $400,000 for facility maintenance a few years ago. Mr. McClendon explained that the General Fund includes general maintenance funds and a building maintenance reserve; however, the amounts were established prior to the time that the City had a Civic Center. Councilmember Clark asked if funds brought in by the Civic Center could be used for maintenance. Ms. Ilardo said it would be quite a while before they break even and would have money available for other uses. Councilmember Lieberman said he would like to see an annual fee included in the budget and suggested that $100,000 is set aside. Ms. Ilardo said they were researching ongoing costs at other facilities. 13 Mayor Scruggs revisited Councilmember Clark's suggestion of moving $300,000 from enhancements to create a maintenance reserve. Mr. McClendon said the suggestions made by both Councilmembers Clark and Lieberman for an annual appropriation would have to come through the annual budgeting process. General Fund Projects Councilmember Martinez pointed out no monies had been set aside past Fiscal Year 2003-04 for sound walls. Mr. McClendon explained that they have monies set aside in the operating budget to repay the amounts borrowed, but those projects represent the completion of the planned sound walls. Councilmember Clark said they would see more than $119 million appropriated over the next five years for water and sewer. She said it makes a good case for the re- establishment of the Council Committee on Utilities. She noted that water and sewer consumes 42% of the CIP over the next five years. She asked the Council to consider setting caps or specific percentages for funds in following fiscal years. ADJOURNMENT The meeting was adjourned at 4:45 p.m. 14