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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 6/10/2003 MINUTES OF THE REGULAR MEETING OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, HELD TUESDAY, June 10, 2003, AT 7:00 P.M. The meeting was called to order by Mayor Elaine M. Scruggs, with Vice Mayor Thomas R. Eggleston and the following Councilmembers present: Joyce V. Clark, Steven E. Frate, David M. Goulet, H. Philip Lieberman, and Manuel D. Martinez. Also present were Ed Beasley, City Manager; Pam Kavanaugh, Assistant City Manager; Rick Flaaen, City Attorney; and Pamela Hanna, City Clerk. COMPLIANCE WITH ARTICLE VII, SECTION 6(c) OF THE GLENDALE CHARTER A statement was filed by the City Clerk that the 4 resolutions and 2 ordinances to be considered at the meeting were available for public examination and the title posted at City Hall more than 72 hours in advance of the meeting. APPROVAL OF THE MINUTES OF THE MAY 27, 2003 CITY COUNCIL MEETINGS It was moved by Goulet, and seconded by Clark, to dispense with the reading of the minutes of the May 27, 2003 Regular City Council meeting, as each member of the Council had been provided copies in advance, and approve them as written. The motion carried unanimously. CONSENT AGENDA Mr. Ed Beasley requested that Item 7 on the Council Agenda be tabled to the council meeting of June 24, 2003. It was moved by Clark, and seconded by Lieberman, to table Item 7 to the council meeting of June 24, 2003. The motion carried unanimously. Mr. Ed Beasley, City Manager, read Agenda Item Numbers 1 through 6 and Ms. Pamela Hanna, City Clerk, read consent agenda resolutions numbers 8 through 10 by number and title. Councilmember Lieberman requested item number 2 be heard separately. Councilmember Goulet requested item number 3 be heard separately. 1. SPECIAL EVENT LIQUOR APPLICATION FOR GLENDALE CIVIC PRIDE AMBASSADORS This is a request for a special event liquor license for Glendale Civic Pride Ambassadors. The event is Fiesta Glendale, which will be located in downtown 1 Glendale between 58th Avenue and 59th Avenue and between Glendale Avenue and Glenn Drive. No liquor will be sold in Murphy Park. The event will be held from 3:00 p.m. to 11:00 p.m. on Friday, September 12, 2003 and Saturday, September 13, 2003. If this license is approved, the total days expended by this applicant will be 10 of the allowed 10 days this year. Under the provisions of Arizona Revised Statutes, Section 4-203.02, the Arizona Department of Liquor Licenses and Control may issue a special event liquor license only if the City Council recommends approval of such license. The recommendation was to forward to the Arizona Department of Liquor Licenses and Control with the recommendation for approval. 4. APPROVAL OF AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT —WEST AREA WATER RECLAMATION FACILITY EXPANSION This is a request for City Council approval of an amendment to the professional services agreement with Malcolm Pirnie for the provision of construction management services related to the expansion of the West Area Water Reclamation Facility (WAWRF). The existing WAWRF began operating during the summer of 2000 with a rated capacity of 4.3 million gallons per day (MGD). Due to higher flows from changes in the metering of sewage within the Sub Regional Operating Group (SROG) sewage collection area and additional population growth, the WAWRF will be expanded to meet the city's needs for build out. On May 28, 2002, Council approved Malcolm Pirnie's engineering design contract for the expansion in the amount of $3,338,262. This amendment includes $936,832 for additional design and $3,868,000 for construction administration services bringing the total contract amount to $8,143,094. Malcolm Pirnie will provide the following engineering services: • Construction administration, inspection, and testing • Developing procedures for optimizing the expanded disinfection equipment • Development and submission of applications for state required permits for recharge and reuse of effluent at the proposed New River Agua Fria Underground Storage Project (NAUSP) • Engineering support related to applications for final state permits for the existing Aquifer Recharge Facility (ARF) and the WAWRF • Additional design required for offsite reuse piping and pilot pump testing 2 This is a multi-year project with funds available in the five-year Capital Improvement Program. Funds are available for this amendment in West Area Water Reclamation Plant Expansion, Account No. 50-9246-8300. The recommendation was to approve the amendment to the professional services agreement with Malcolm Pirnie, Inc., in an amount not to exceed $4,804,832 for the engineering services. 5. AWARD OF CONSTRUCTION CONTRACT FOR THE WEST AREA WATER RECLAMATION FACILITY EXPANSION This is a request for City Council approval of a Construction Manager at Risk (CM©R) construction contract with Sundt Construction, Inc. for the expansion of the West Area Water Reclamation Facility. In October 2002, Council awarded Sundt Construction, Inc. a CM@R contract for the design support services for the expansion project. Sundt participated in the design by assisting the city and the design engineer, Malcolm Pirnie Inc., in maintaining the project requirements, budget and schedule, as well as conducting the bidding to establish the guaranteed maximum price for constructing the project. The water reclamation facility was designed for an initial capacity of 4.3 million gallons per day (mgd) with an ultimate future expansion capacity. This expansion will increase the treatment plant capacity to 10mgd, which will meet the city's treatment needs for buildout to 115th Avenue. The construction will include additional chemical, biological, and physical process facilities, additional raw sewage pumping facilities, additional residuals handling facilities, and additional effluent recharge pipelines. The project also provides new security screening block walls and additional equipment shade canopies. Sundt has conducted the bidding and has established the guaranteed maximum price of$31,021,725. A transfer of funds for this project is needed as follows: $238,000 from West Area Plant, Account No. 50-6432-8400 and $1,000,000 from West Area Reuse Pipelines, Account No. 83-9278-8300 into Water and Sewer, West Area Water Reclamation Plant Expansion, Account No. 50-9246-8300. The recommendation was to approve the transfer of funds and construction contract with Sundt Construction, Inc. in the amount of $31,021,725. 6. PIPELINE MAINTENANCE AGREEMENT WITH SALT RIVER PROJECT This is a request for City Council to enter into a Pipeline Maintenance Agreement with the Salt River Project Agricultural Improvement and Power District (SRP). The agreement establishes responsibilities for the maintenance and repair of an irrigation pipeline being located beneath the planned Maryland Avenue overpass at Grand 3 Avenue and 55th Avenue. SRP has an existing 24" irrigation pipeline within the existing Maryland Avenue street right-of-way that is being relocated by ADOT in conjunction with the planned ADOT Grand Avenue intersection improvements. The best relocation alignment for this new irrigation pipeline requires approximately 517 lineal feet of the pipeline to be placed beneath the elevated roadway and embankment slopes for the overpass within city right-of-way for Maryland Avenue. The agreement establishes the responsibilities for the maintenance, repair and replacement for this relocated SRP irrigation pipeline. The city would be responsible for any future costs for the repair and replacement of any leaky and/or damaged irrigation pipe located within the city's right-of-way. As this will be a new irrigation pipeline constructed of Class V reinforced concrete pipe, we would not anticipate any significant repair work being required on the pipeline during the 20+ year life span for the pipe. This maintenance agreement between the city and SRP terminates upon the abandonment or discontinued use of the pipeline for the delivery of irrigation water. The recommendation was to authorize the City Manager to enter into Pipeline Maintenance Agreement with Salt River Project. 7. GENERAL FUND CONTINGENCY TRANSFERS - This item was tabled to the City Council meeting of June 24, 2003. CONSENT RESOLUTIONS 8. AMENDMENT TO INTERGOVERNMENTAL AGREEMENT FOR AESTHETIC ENHANCEMENTS TO THE GRAND AVENUE OVERPASS AT 4311) AVENUE AND CAMELBACK ROAD This is a request for approval of an amendment to a previously approved Intergovernmental Agreement (IGA) between the Arizona Department of Transportation (ADOT) and the City of Glendale relative to the aesthetic enhancements requested by the city in the proposed ADOT Grand Avenue Overpass project at 43rd Avenue and Camelback Road. On July 9, 2002, the City Council approved an IGA with the ADOT which incorporated the following city requested aesthetic elements: artistic enhancements to the retaining and abutment walls of the overpass, decorative wrought iron fencing, and the acquisition and removal of two billboards. The total cost of the aesthetic enhancements to the city for this Grand Avenue project in the approved agreement was $354,143. One of the line item enhancements and city costs contained within the IGA was $120,000 for the city's share of the costs to acquire and remove a billboard from a portion of the project area along Grand Avenue. During the final design and property acquisition phases of the project, it became apparent to ADOT and the city that the 4 process and final costs to acquire and remove this billboard would not be beneficial to either party and would result in only modest visual improvement to the Grand Avenue corridor. The mutual decision not to acquire and remove this billboard reduces the city's obligation to ADOT in the IGA by $120,000. The sole purpose of this amendment is to reflect this change to and reduce the city's total enhancement costs in the project from $354,143 to $234,143. The recommendation was to waive reading beyond the title and adopt a resolution authorizing the entering into of an Amendment No. One to the Intergovernmental Agreement with the Arizona Department of Transportation concerning the aesthetic enhancements to the Grand Avenue overpass at 43ra Avenue and Camelback Road. Resolution No. 3675 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE ENTERING INTO OF AMENDMENT NO. ONE TO THE INTERGOVERNMENTAL AGREEMENT WITH THE ARIZONA DEPARTMENT OF TRANSPORTATION FOR AESTHETIC ENHANCEMENTS TO THE GRAND AVENUE OVERPASS PROJECT AT 43RD AVENUE AND CAMELBACK ROAD 9. AUTHORIZATION OF LEASE AGREEMENT FOR CAPITAL PURCHASES This is a request for City Council to authorize the execution and delivery of one or more lease agreements for the purpose of funding certain projects and related costs. Over the years, the city has successfully utilized lease-purchase financing as a tool to accelerate and enhance services to our citizens. This technique allows essential assets to be acquired as needed, and to be utilized in areas such as Economic Development, Fire, Police and Sanitation. Finance staff has worked on capital lease financing opportunities related to budgeted capital outlay in various departments, including reimbursement of up to $9,000,000 already disbursed or encumbered. In May, Finance staff conducted a survey of all departments' lease financing needs. Items anticipated to be funded in this capital lease purchase include reimbursement for the acquisition of Hickman's Egg Ranch, a Police radio system, four sanitation trucks, a rear loading sanitation truck, and a copier. The capital lease is also anticipated to fund the City Court renovation and a fire truck. Staff and the independent financial advisor reviewed the proposals received based on overall benefit to the city. A proposal's benefit was evaluated based on best interest rate, prepayment terms offered, and conformity to requested specifications. A recommendation will be made at the meeting, due to time sensitive constraints in receiving current market rate proposals. 5 The recommendation was to waive reading beyond the title and adopt a resolution authorizing and providing for the execution and delivery of one or more lease agreements, in an amount not to exceed $15,000,000 for the purpose of funding certain projects and related costs. Resolution No. 3676 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND PROVIDING FOR THE EXECUTION AND DELIVERY OF ONE OR MORE LEASE AGREEMENTS IN AN AMOUNT NOT TO EXCEED $15,000,000 FOR THE PURPOSE OF PROVIDING FUNDS TO PAY ALL OR A PORTION OF THE COSTS OF CERTAIN PROJECTS OF THE CITY AND TO PAY ALL NECESSARY LEGAL, FINANCIAL, ARCHITECTURAL, ENGINEERING AND OTHER COSTS IN CONNECTION THEREWITH; PROVIDING FOR THE AWARD OF SAID LEASES; AUTHORIZING CERTAIN OTHER DOCUMENTS AND THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THE LEASE; AND DECLARING AN EMERGENCY 10. RATE AND FEE ADJUSTMENTS FOR RESIDENTIAL AND COMMERCIAL SANITATION COLLECTION AND LANDFILL DISPOSAL This is a request for City Council to approve rate and fee adjustments as described in the attached rate and fee tables for residential sanitation collection, commercial sanitation collection, and landfill disposal. At its May 6, 2003, workshop, City Council reviewed the FY03-04 budgets and rate adjustment options for the residential sanitation collection, commercial sanitation collection, and landfill disposal programs. City Council requested the following adjustments be brought forward for formal City Council adoption: • an increase from $13.50/household/month to $14.50/household/month for residential service; • an increase of 8% to bin rates for commercial front-load service; • the elimination of the woodwaste grinding operation and the accompanying woodwaste tip fee of$16.50/ton; and • the lowering of the landfill disposal fee charged to City departments, as well as City residents who receive City residential collection services, from $19.98/ton to $19.50/ton. The residential collection rate and fee table also reflects an increase in previously established fees for services such as twice per week refuse collection for those who do not participate in the recycling program. In addition, various fees for commercial roll-off collection and commercial front- load collection services have been adjusted to reflect the estimated cost of service 6 based on the estimated labor, equipment, and material expenses involved in providing the various special services. In a few instances, a new fee was established for special services previously provided at no charge. The only new fee added to the landfill rate and fee table is related to the City's cost of removing freon from appliances like refrigerators and air conditioners. Currently, the vendor charges the City $5.00 per refrigerator and $8.00 per air conditioner. These costs would apply to all landfill customers. In FY01-02, the landfill received 1,583 units that required freon removal. The last rate and fee adjustments were in July 2001 for residential services and July 2000 for the commercial services. The rate adjustments are needed to accommodate the increased costs related to fuel, equipment, personnel, and internal service charges that have occurred since the last rate adjustments. The rate and fee adjustments will become effective with the July 2003 billing. As presented at the May 6, 2003, City Council workshop, the recommended residential rate adjustment will be distributed between the Sanitation Fund and the Landfill Fund for FY03-04 as follows: $13.05/household/month to the Sanitation Fund and $1.45/household/month to the Landfill Fund. The recommendation was to waive reading beyond the title and adopt a resolution setting forth new rates and fees for residential and commercial sanitation collection and landfill disposal. Resolution No. 3677 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, ADOPTING THE ADJUSTED RATES AND FEES FOR RESIDENTIAL AND COMMERCIAL SANITATION COLLECTION AND LANDFILL DISPOSAL; AND ESTABLISHING AN EFFECTIVE DATE It was moved by Lieberman and seconded by Clark, to approve the recommended actions on Consent Agenda Item Nos. 1, 4, 5, 6, 8, 9, and 10, including the approval and adoption of Resolution No. 3675 New Series, Resolution No. 3676 New Series, and Resolution No. 3677. The motion carried unanimously. 2. GLENDALE LANDFILL GAS RIGHTS AGREEMENT Mr. Norm Gumenik, Landfill Supervisor, presented this item. This is a request for City Council approval of an agreement with Bryan A. Stirrat & Associates (BAS) for gas rights at the Glendale landfill. Methane gas is generated in the landfill as a byproduct of the waste decomposition process. State and federal law require facilities to install gas management systems to prevent off-site migration of 7 landfill gas. In Glendale, the gas is collected and transported by pipeline to the landfill flare. Additional gas management alternatives are available. State and federal law allow for the use of methane gas as an energy source. Federal Code Section 29 tax credits and Renewable Energy Production Incentives (REPI) from the U.S. Department of Energy additionally encourage gas-to-energy projects. During FY 2000-01, staff developed a Request for Proposal (RFP 00-52) to explore available gas-to-energy options for the Glendale landfill. A proposal from SCS Engineers and partners was selected for further review and negotiation. The proposal was to use the landfill gas to generate electricity for sale to the local power company. Discussions were discontinued when the proposing team was unwilling to guarantee construction completion of infrastructure necessary for the project. City staff next contacted the second ranked proposer, BAS, to discuss the company's proposal. The proposal presented several energy production alternatives, including the generation of electricity for city use, the production of liquefied natural gas, and the sale of gas for the production of heat at a local asphalt plant. Staff requested BAS to pursue the electricity generation option and initiate discussions with the local power company to develop the necessary power backup cost and transmission agreements. An agreement could not be reached when it was determined the power company charges were cost prohibitive to the project. Staff also concluded after further discussion with BAS, that the other options in the proposal would be more viable. The proposed agreement grants BAS exclusive landfill gas rights and establishes a framework for developing and adding projects in the future. As part of the agreement, the city will provide a one-acre parcel of land at the landfill for the siting of project equipment. In return for the gas rights and the use of the property, BAS will pay the city an annual rent of $50,000, and continue operating and maintaining the landfill gas management system, at no cost to the city. The city currently pays $54,672 annually to BAS to operate and maintain the system. The total annual value of the proposed agreement is $104,672, including a decrease in the landfill operating budget of $54,672, and an annual revenue increase of $50,000 for the landfill enterprise fund. Additional REPI payments may be available to the city in the future if electricity is generated from the agreement and sufficient federal monies are available for these projects. The proposed plan is to continue flaring the gas while evaluating opportunities to sell the gas to third parties. BAS will continue to explore mutually beneficial gas utilization projects based on changing market conditions. Code Section 29 tax credits may be available to BAS as a result of the gas projects. The term of the agreement is for 4.5 years, to expire on December 31, 2007. BAS will have the option to extend the term for four 5-year periods, upon written notice 8 at least 60 days prior to the agreement expiration date. Extension agreements will be renegotiated to reflect market conditions and available project options. The city will have the right to deny the extension upon written notice within 30 days of the receipt of the request for extension. The recommendation was to approve the entering into of the Landfill Gas Rights and Lease Agreement with BAS Landfill Gas Limited Partnership. Councilmember Lieberman pointed out BAS must be able to write off $104,000 in tax credits. He questioned whether an RFP should be issued to see if others would be interested in competing for the tax credits. Mr. Gumenik noted there were several bidders two years ago and BAS was the second selected bidder. Councilmember Lieberman asked how many collection points does the landfill currently have. Mr. Gumenik responded 61. He explained monitoring is done at the main collection point and each well is checked monthly to ensure they are functioning properly. He confirmed BMS also does maintenance on the piping. Mr. Gumenik was unable to estimate the value of the tax credit, explaining it would be based on the sale of gas. Mr. Gumenik confirmed for Councilmember Clark that BMS could not accrue tax credits until they sell the gas. He said, therefore, BMS is currently paying to maintain the system they created for the city. 3. PROFESSIONAL SERVICES AGREEMENT — FOOTHILLS RECREATION AND AQUATIC CENTER Mr. Warren Smith, Parks and Recreation Director, presented this item. This is a request for City Council approval of a professional services agreement with Architectural Resource Team, Inc. (ART) for the design development and construction administration for the proposed Foothills Recreation and Aquatic Center. In June 2002, City Council was presented results of a needs analysis and site use study for the center, along with a business plan for operations and maintenance. At that time, City Council directed staff to proceed with the design, and bring back a design that would include a construction phasing plan. Should the design and construction phasing be approved by City Council, the project will move forward to the construction phase. The architects from ART will work in collaboration with a construction management firm that will be selected using the Construction Manager at Risk (CM@R) process. ART will provide construction administration services throughout construction. The new Foothills Recreation and Aquatic Center will be located on the north side of Union Hills Drive, between 55th and 57th Avenues. The new recreation and aquatic center will compliment a multi-facility city complex that includes a public library, regional park, multi-purpose trail along Skunk Creek, and skate court facility. The new proposed recreation center may be over 50,000 square feet and as requested through 9 citizen surveys, may include a high school competition-size gymnasium, suspended indoor running/walking track, two racquetball courts, a rock climbing wall, and various multi-purpose rooms for classes, child care and exercise. The proposed aquatic center may have an eight-lane competitive lap pool, a zero-depth leisure pool with play features and water slide, and a lazy river. The site will also include associated parking areas. A request for proposals was published on September 19, 2002, with 27 architectural firms responding. Three firms were selected and interviewed on March 11, 2003. The interview committee was comprised of representatives from the City Manager's Office, Parks and Recreation, Library, Field Operations and Engineering. Architectural Resource Team, Inc. was selected as the best qualified firm to perform the required services. Funds are available in the Fiscal Year 2003/04 Capital Improvement Program, Foothills Recreation & Aquatics Center, Account No. 36-8048-8330 to cover the design and construction administration services for this project. The recommendation was to approve the professional services agreement with Architectural Resource Team, Inc. in an amount not to exceed $993,727. In response to Councilmember Goulet's question, Mr. Smith stated Exhibit A lists the recreational activities identified during the public input process. He said the Architect and Construction Manager at Risk will look at economies, efficiencies and the best use of materials to arrive at a guaranteed maximum price for construction. Vice Mayor Eggleston asked about the role of the Construction Manager at Risk. Mr. Larry Broyles, City Engineer, explained the Construction Manager at Risk will work with the Architect on the design of the project and obtain quotes for the various aspects of the project. He said they will also be responsible for developing a construction schedule. Mr. Broyles confirmed there will be a separate contract for the Construction Manager at Risk, which he estimated to cost approximately six to eight percent. He clarified the Construction Manager at Risk would proceed into construction. Vice Mayor Eggleston expressed concern about the timing of the project, given its substantial ongoing costs. He suggested they update the business plan as construction draws closer. Mr. Smith stated updating the business plan is part of the process, noting they will also look at issues of privatization. Mayor Scruggs asked what impact the suspended running track will have on the facility's cooling bills, given the wasted space it will create. Mr. Smith said alternative locations for the track will be included in the scoping of the project. He explained, typically, the track goes around the gymnasium which is required to be of a certain height anyway. 10 It was moved by Lieberman and seconded by Clark, to approve the recommended actions on Consent Agenda Item Nos. 2 and 3. The motion carried unanimously. PUBLIC HEARING — LIQUOR LICENSES 11. LIQUOR LICENSE NO. 3-877 SKY BOX BAR & GRILL This is a request for a person transfer of a series 6 (on- & off-sale retail, all liquor) license for Sky Box Bar & Grill located at 17035 N. 67th Avenue. The previous owner operated this business as Sky Box Cafe and held a series 6 (on- & off-sale retail, all liquor) license at this location. The applicant is currently operating this establishment pursuant to an interim permit issued by the Arizona Department of Liquor Licenses and Control. The approval of this license will not increase the total number of liquor licenses in this area. The establishment is over 300 feet from any school or church. No protests were filed during the 20-day posting period. The Planning Department, the Police Department, and the Maricopa County Health Department have reviewed the application and have determined that it meets all technical requirements. The recommendation was to conduct a public hearing and forward to the Arizona Department of Liquor Licenses and Control with the recommendation for approval. 12 LIQUOR LICENSE NO. 3-878 QUICK PIK MINI MART This is a request for a new series 10 (off-sale retail, beer & wine) license for Quick Pik Mini Mart located at 6604 W. Olive Avenue. The previous owner operated this business as Quik Pik and held a series 10 (off-sale retail, beer & wine) license at this location. The applicant is currently operating this establishment pursuant to an interim permit issued by the Arizona Department of Liquor Licenses and Control. The approval of this license will not increase the total number of liquor licenses in this area. The establishment is over 300 feet from any school or church. No protests were filed during the 20-day posting period. The Planning Department, the Police Department, and the Maricopa County Health Department have reviewed the application and have determined that it meets all technical requirements. The recommendation was to conduct a public hearing and forward to the Arizona Department of Liquor Licenses and Control with the recommendation for approval 11 Mayor Scruggs opened the public hearing on Agenda Item Numbers 11 and 12. As there were no comments, Mayor Scruggs closed the public hearing. It was moved by Lieberman, and seconded by Clark, to forward Liquor License Applications No. 3-877 for Sky Box Bar and Grill and No. 3-878 for Quick Pik Mini Mart to the State of Arizona Department of Liquor Licenses and Control, with the recommendation for approval. The motion carried unanimously. ORDINANCES 13 SALT RIVER PROJECT ELECTRICAL EASEMENT AT 83RD AND GLENDALE AVENUES Ms. Kathie Sholly, Property Manager, presented this item. This is a request to grant an electrical easement to Salt River Project (SRP). This easement is located along the west side of 831d Avenue, north of Glendale Avenue. As part of the Rovey Farms subdivision development, widening of 83rd Avenue is required by the city. After the road widening, SRP's 69 kv power line will be located within the new right of way. The easement will allow the 69 kv line to remain in its current location. The recommendation was to waive reading beyond the title and adopt an ordinance authorizing the City Manager to execute an electrical easement in favor of Salt River Project. Ordinance No. 2322 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN ELECTRICAL EASEMENT IN FAVOR OF SALT RIVER PROJECT TO RELOCATE EXISTING TRANSMISSION LINES FOR THE WIDENING OF 83RD AVENUE NORTH OF GLENDALE AVENUE; AND ORDERING THAT A CERTIFIED COPY OF THIS ORDINANCE BE RECORDED It was moved by Clark, and seconded by Goulet, to approve Ordinance No. 2322, New Series. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, Frate, and Scruggs. Members voting "nay": none. 14. LEASE RENEWAL WITH PERONA INC., BANK OF AMERICA PLAZA BUILDING Ms. Kathie Sholly, Property Manager, presented this item. 12 This is a request for City Council approval of a three-year lease renewal with Perona, Inc., an Arizona Corporation, doing business as First Command for Suites 310, 325 and 330 in the Bank of America Plaza Building. NAI Horizon, the company under contract to manage the Bank of America Plaza property for the city, has negotiated a lease renewal with Perona for these suites which contain 4,509 square feet. The lease begins at an annual rate of $16.25 per square foot, increasing to $16.75 per square foot for the second year, and again to $17.25 per square foot for the third year. The lease also requires payment of a proportionate share of common area expenses, in the same manner as is charged to other tenants of the building. Accepting this lease will not change the occupancy rate of the Bank of America Plaza, but will retain a business that has been a tenant since prior to the city's acquisition of the building. The recommendation was to waive reading beyond the title and adopt an ordinance authorizing the City Manager to execute the lease renewal with Perona, Inc., an Arizona Corporation, dba First Command. In response to Councilmember Lieberman's question, Ms. Sholly explained NAI is paid on a monthly basis to manage the property for the city. She stated NAI also receives a nominal amount for the lease renewal, noting they receive a larger percentage when they find new tenants. Ordinance No. 2323 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE MAYOR AND/OR CITY MANAGER AND CITY CLERK TO EXECUTE A LEASE RENEWAL WITH PERONA, INC. dba FIRST COMMAND FOR OFFICE SPACE AT THE BANK OF AMERICA PLAZA It was moved by Frate, and seconded by Goulet, to approve Ordinance No. 2323, New Series. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, Frate, and Scruggs. Members voting "nay": none. PUBLIC HEARING — RESOLUTION 15. REVIEW AND ACCEPTANCE OF THE PROPOSED FISCAL YEAR 2003-04 BUDGET Ms. Pilar Aguilar, Acting Budget Director, presented this item. During seven special budget workshops in April and May, the City Council reviewed the proposed City of Glendale Fiscal Year (FY) 2003-04 budget. The workshops provided the Council with the opportunity to closely analyze and evaluate all aspects of the city's budget. 13 The public hearing today is required prior to Council adoption of the preliminary budget for FY 2003-04. Council approval of this preliminary budget will set the maximum level of expenditures for next year. Adjustments and reallocation of expenditures can be made after adoption of the preliminary budget, but the total amount of expenditures cannot be increased. Final budget adoption is scheduled to occur at the next evening City Council meeting on June 24, 2003. The city's budget must be adopted prior to July 1. In preparing Glendale's Fiscal Year (FY) 2003-04 budget, an $18.8 million shortfall between General Fund revenues and expenditures was identified. This projected shortfall resulted from a combination of factors, including a $3.54 million drop in state-shared income tax collections, increased costs due to mandatory hikes in contributions to the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS), higher risk insurance premiums, increased contract costs, expenses related to grant-funded police officers and operating costs of new capital facilities. Through a combination of spending cuts and departmental efficiencies, staff was able to trim General Fund expenditures by $6.1 million for next fiscal year. Additionally, $13.9 million in one-time solutions were identified, providing the City Council with an additional $1.2 million for contingency or other purposes. The use of one-time solutions during challenging economic times is consistent with standard business practices. The Council also took some bold steps to strengthen the revenue stream for the future by moving ahead with the the sports venues and mixed use development projects adjacent to Loop 101, by adopting a new fee philosophy related to parks and recreations services, increasing fees for service in areas applicable to non-residents, and approving a change in the telecommunications tax. The end result is a balanced budget for FY03-04, minimal service impacts, no employee layoffs and no increases to be absorbed by employees for their health benefits. A cross-departmental team was appointed late last year to address ongoing budget obstacles. The first step in tackling the FY 2003-04 budget shortfall included continuing cost-saving measures that were implemented in FY 2002-03: • No transfers of salary savings to operating budgets • No unbudgeted carryover savings — all carryover returned to the General Fund • No vacant or temporary positions filled without review by the Position Review Committee and approval by the City Manager's Office > Capital projects are reviewed for operating and maintenance costs impacting the General Fund 14 A. Discontinued use of Limited Departmental Purchase Orders A Limited use of city credit cards to essential expenditures Review all capital purchases for possible deferment A Amended the city's standby pay policy to create savings A Deferred departmental payments to equipment replacement funds Additionally, each department identified reductions equalling 10 percent of their FY03-04 non-salary budgets. to be met despite these impacts. While we will continue to keep a close watch on our current situation, our vision for Glendale includes a variety of exciting new and future projects. Several new retail centers and stores have opened or will open over the next several months, generating some additional sales tax revenue. A Kohl's Department Store at 55th Avenue and Bell Road A Sam's Club and Super Wal-Mart at 83rd Avenue and Union Hills Drive A The Village at Arrowhead at 67th and Beardsley (anchored by A.J.'s Fine Foods) Agua Fria Town Center at 95th Avenue and Camelback Road A Northern Crossing at 59th Avenue and Northern (anchored by Super Wal- Mart and Lowe's Home Improvement Store) In addition, the Coyotes Arena will eventually anchor a 223-acre, mixed-use development that will include Class A Offices, restaurants, entertainment and recreational facilities, hotels and residential uses. Our Economic Development Department estimates this project will generate $62 million in sales tax revenue over the 30-year term of the lease, $21 million of which is earmarked to support additional police and fire services throughout the city. The Tourism and Sports Authority (TSA) Cardinals Multipurpose Stadium will occupy approximately 180 acres just south of the arena project. During construction of the stadium—which is anticipated to be completed in time for the 2006 NFL season— more than 3,500 jobs will be created and approximately $400 million in economic benefits will be pumped into Arizona's economy. Once the stadium is operational, economists estimate the Cardinals' regular season games and the Tostitos Fiesta Bowl could add a $290 million annual boost to our economy. Potentially, an additional $400 15 million impact could be realized should the stadium be selected for a future Super Bowl site. Even while dealing with the current reality of falling revenues and increased costs, we have been able to see beyond the hard times. As John F. Kennedy once advised, "There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction." Staff is confident that the Mayor and Council's visionary "program of action" will ensure an enhanced quality of community life and secure Glendale's position as a world-class destination city in the near future. The recommendation was to conduct a public hearing and waive reading beyond the title and adopt a resolution accepting the preliminary budget for Fiscal Year 2003- 04. Ms. Aguilar stated the total appropriations for the City of Glendale planned for FY 2003-04 total $593,000,000. She explained $293.6 million will be appropriated to the Capital Improvement Program, $48.1 million will be used for debt service payments and $14.27 million is a contingency appropriation. She stated the operating budget is 40 percent of the total appropriation or $237 million. She reviewed the operating budget by group, stating Public Safety accounts for 23 percent, Public Works accounts for 31 percent and the Community Services Group accounts for 14 percent. She said the Community Development Group and City Manager's Group each account for 10 percent, the Appointed Officials Group accounts for 3 percent, and Administrative Services accounts for 6 percent. She stated 32.5 Full-Time Employee positions have been added to the budget. She explained the Police Department will add 17 officers, noting 75 percent of the funding for those positions will come from a federal grant. She said Building Safety added four new limited term positions which will last until the completion of the Cardinal Stadium construction project. She said Field Operations added three equipment operators for improved loose trash collection services and the Transportation Department added two additional Dial-a-Ride drivers to meet the demand for increased bus services. She stated the Fire Department also added two, limited term, three year, Fire Inspector positions. She noted the Building Safety and Fire Department positions will be funded from permit revenues generated by the site. She stated City Court added a Traffic Hearing Officer and Community Services added a Recreation Programmer for its self-sustaining program. She noted, however, a total of 6.5 positions were eliminated, with four eliminated from the Woodwaste Program, two eliminated from the cemetery, and .5 eliminated from the Grants Division. Ms. Aguilar stated the General Fund represents the largest and most important portion of the Glendale budget because it contains essential services. She said Police and Fire account for 44-45 percent of the $101 million General Fund and Community Services accounts for 16 percent. She stated Community Development, Administrative 16 Services and Public Works each account for seven percent of the General Fund and the City Manager's Group, Appointed Officials and Non-Departmental account for six percent. Ms. Aguilar reviewed projected revenues, stating 37 percent comes from Local Sales Tax and 38 percent comes from State Shared Revenue. She stated Fees and Charges and Miscellaneous Fees account for 15 percent and 4 percent, respectively, while Franchise Fees and Primary Property Taxes each account for three percent. She explained 71 percent of the Miscellaneous Fees revenue is related to the anticipated sale of parcels at Northern Crossings. Ms. Aguilar stated the Capital Improvement Plan represents the largest component of the FY 2003-04 Budget, totaling $293.63 million. She stated 36 percent will be for water and sewer projects and 25 percent is related to the construction of the arena. She stated Streets and Transportation projects account for 15 percent and Parks and Open Space projects account for nine percent. She said Government Facilities projects account for four percent and Public Safety and Airport projects account for three percent each. She explained the Other Projects category includes General Fund capital, Enterprise Fund capital, Housing, Arts, Acquisition and Grants funded projects. Ms. Aguilar reported the Debt Service budget totals $48.1 million, explaining debt is retired from a variety of sources, including Enterprise Fund revenue and General Excise Taxes. She said, however, the largest component of the debt service budget is funded by the Secondary Property Tax. She emphasized, though, that the overall city property tax rate will not increase. Ms. Aguilar stated the budget will be published for the next two consecutive weeks in the Glendale Star, along with a notice of when the property tax hearing will be held. Councilmember Clark asked if the preliminary budget will be available online. Ms. Aguilar responded yes, noting copies will also be available at the City Clerk's Office and the public libraries. Councilmember Martinez asked if the fact the contingency fund transfers were tabled until June 24 has any impact on their preliminary approval. Mr. Flaaen answered no. Ms. Aguilar explained the contingency transfer was for the current fiscal year and the recommended action relates to next fiscal year. Vice Mayor Eggleston asked about the "Pay As You Go" fund, which he noted totals $2 million. Ms. Aguilar explained Pay As You Go capital represents capital projects or equipment purchased using available cash resources. She reviewed projects included under Pay As You Go for FY 2003/04. She confirmed most of the funds are carryover funds. 17 Councilmember Martinez asked if any temporary positions were eliminated in the Loose Trash Division. Ms. Aguilar responded yes, stating the budget reflects the reduction in temporary employees and the increase in salaries for the additional full time positions. Councilmember Martinez asked for an explanation of the "Truth in Taxation" requirements. Ms. Aguilar explained the Truth in Taxation requirements under state law require the city to post public notice in a newspaper if the city increases its primary property tax levy. She noted the city is allowed to increase the primary property tax levy by the amount attributable to new construction only. Vice Mayor Eggleston asked about the drop in Capital and Other Revenues. Ms. Aguilar stated Capital revenues include bond proceeds, explaining this year's figure reflects a $150 million bond sale related to the arena. Mayor Scruggs opened the public hearing on Agenda Item No. 15. As there were no comments, Mayor Scruggs closed the public hearing. Resolution No. 3678 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, ADOPTING THE ESTIMATES OF THE AMOUNTS REQUIRED FOR THE PUBLIC EXPENSE FOR THE CITY OF GLENDALE FOR THE FISCAL YEAR 2003-2004; ADOPTING A TENTATIVE BUDGET; SETTING FORTH THE REVENUE, THE AMOUNT TO BE RAISED BY DIRECT PROPERTY TAXATION FOR THE VARIOUS PURPOSES; AND GIVING NOTICE OF THE TIME FOR HEARING TAXPAYERS FOR FIXING THE TAX LEVIES It was moved by Clark, and seconded by Frate, to pass, adopt and approve Resolution No. 3678, New Series. Councilmember Clark commented on the difficulties staff, the Council and the administration faced when balancing the budget. She thanked staff for their work to prepare the budget. Councilmember Martinez also thanked staff for the tremendous amount of work they did to meet the schedule. Councilmember Frate also expressed his appreciation to staff. He pointed out the budget process started with a $18.8 million shortfall. Councilmember Lieberman thanked staff for keeping him abreast of budget issues when he was unable to attend the meetings. Mayor Scruggs asked if Council is accepting or adopting the preliminary budget. Mr. Flaaen explained Council is adopting the estimates and a tentative budget, noting final adoption will occur at the next Council meeting. Mayor Scruggs suggested they change the wording on future Council communications to indicate the Council will be adopting the preliminary budget. 18 Vice Mayor Eggleston pointed out Council made a few assumptions in accepting the budget. He said, while the budget cannot be increased, it might have to be adjusted should the assumptions not hold true. Upon a call for the question, the motion carried unanimously. REQUEST FOR FUTURE WORKSHOP AND EXECUTIVE SESSION It was moved by Eggleston, and seconded by Frate, to hold a City Council Workshop at 1:30 p.m. in Room B-3 of the City Council Chambers on Tuesday, June 17, 2003, to be followed by an Executive Session pursuant to A.R.S. 38- 431.03., and to hold a Special City Council Executive Session at 3:00 p.m. in Room B-3 of the City Council Chambers on Tuesday, June 24, 2003, pursuant to A.R.S. 38-431.03 The motion carried unanimously. CITIZEN COMMENTS Carl Umfress, a resident of the City of Glendale Cholla District, voiced his opinion BMX bikes should be allowed to utilize the new skate park on Union Hills Drive, noting many nearby residents and shop owners agree. He suggested it will take a lot of effort on the part of the Police Department to prevent BMX bikers from using the park, wasting both the city's time and money. He said he and other bikers will be made into criminals by riding their bikes in a public park. He expressed his opinion the city should recognize the need for bikers to have a place to ride. He asked Council to allow bikes to utilize the new skate park until such time as a bike park is created. Jason Ryan, a resident of the City of Scottsdale and President of the Bike, Blade and Board Coalition, said, while BMX kept him out of trouble when he was growing up, it provided him with his first criminal charge 17 years later, Criminal Trespassing for riding his bike in the Chandler Skate Park. He suggested the same thing will happen when Glendale opens its skate park. He said good kids will needlessly be made into criminals. He reported the Bike, Blade and Board Coalition met with Glendale's North District Parks and Recreation officials informing them of the huge enforcement problem a "no bikes" ban would present. He said they informed the officials that bikes either needed to be allowed to utilize the park or a temporary park for bikes needed to be established quickly. He stated the officials refused to consider their suggestions and told them the Police Department was fully ready for negative enforcement of the ban. He explained there are no differences between the parks skateboarders use and those used by BMX bike riders. He pointed out Show Low opened their first public concrete skate park two months ago and welcome bikes. He said Albuquerque New Mexico's skate park also allows bikes and have had no incidences or problems since they opened three years ago. He provided Council with a list of 128 public concrete skate parks located throughout the United States that allow bikes. He said there are an abundance of BMX bike riders in the area of the skate park and valuable police 19 attention will be taken away from real crimes to keep bike riders out of the park. He asked Council to reevaluate the bike ban. Andrew Leeland, a resident of the City of Phoenix, stated he also received his first citation for riding his bike in a local skate park. He pointed out there are nine skate parks in the Phoenix metro area and no bike parks. He said the only place they are allowed to ride their bikes costs $14.00 per person for two-three hour sessions. He said Thrashland at 113th Avenue and Glendale recently went out of business due to increased competition, leaving bikers one less place to ride. He said skate parks became popular because people were tired of the destruction being caused on private property by skateboarders. He suggested the same problems are now occurring with BMX riders because they have no where else to ride. Rex Golos, a resident of the City of Peoria, stated he is excited about Glendale's skate park, but believes bikers should also be allowed to use the park. He pointed out ski slopes, at one time, did not allow snowboarders, however 55 to 60 percent of lift tickets sold today are sold to snowboarders. He said other groups, including scooter riders and quad-disco roller skaters, would also like to use the skate park. He explained bike riders have a high level of control over their bikes and respect other riders. He said they asked for an interim area for bikers in February 2002, however, money has not and is not expected to be available any time soon. He asked Council to initiate an investigation into either lifting the ban or establishing an interim wood ramp facility. COUNCIL COMMENTS AND SUGGESTIONS Councilmember Lieberman stated he showed Mr. Golos some property the city owns on Bethany Home Road which he believes would make a great location for a bike park. He stated he failed to follow through on the issue and he thanked those who came to address the Council. He announced a meeting regarding the new Target center at 51st Avenue and Peoria will be held June 16 in the Council Chambers. He encouraged everyone to attend and express their feelings. Councilmember Goulet noted the first ever Downtown Information Fair will be held June 26 from 6:00 p.m. to 8:00 p.m. He said a number of city departments will be on hand to answer questions. Vice Mayor Eggleston stated his next district meeting will be tomorrow night at Copperwood School. Councilmember Frate invited everyone to the open practice for the Cardinals on Wednesday at Glendale High School. Mayor Scruggs expressed concern about comments made by members of the public implying the city will, in effect, make them criminals because they choose to break a law. She said, regardless of whether bikes are banned from using the skate park, every 20 citizen is responsible when they make the choice to break a law. She said the citizens are distracting attention from their purpose by threatening to ignore the law and waste valuable police time. She suggested they approach the issue in terms of what they would like to see accomplished and how it would benefit the community as a whole. Councilmember Martinez noted groups of skateboarders attended numerous public input meetings held concerning the design of the new park. He said, however, no one representing BMX bike riders attended the meetings. ADJOURNMENT There being no further business, the meeting was adjourned at 8:45 p.m. (<7 , • - -2, 40,, = Pamela Hanna - City Clerk 21