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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 7/8/2003 MINUTES OF THE REGULAR MEETING OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, HELD TUESDAY, JULY 8, 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 3 resolutions and 4 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 JUNE 24, 2003 CITY COUNCIL MEETINGS It was moved by Goulet, and seconded by Clark, to dispense with the reading of the minutes of the June 24, 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, City Manager, read Agenda Item Numbers 1 through 7 and Ms. Pamela Hanna, City Clerk, read consent agenda resolutions numbers 8 through 10 by number and title. Councilmember Lieberman requested item number 9 be heard separately. 1. AWARD OF BID 03-13, PORTABLE VARIABLE MESSAGE SIGNS/TRAFFIC MANAGEMENT SYSTEM This is a request for City Council to approve the purchase of four new portable traffic management system trailers. The trailers will be used as part of the city's traffic management system to monitor and regulate traffic during special events, construction, and major incidents. Unique features of this system include mobility, a variable message sign, solar power capabilities, wireless communication and control, and a closed circuit television (CCTV) camera. Using this tool, in conjunction with the Traffic Management Center and other intelligent transportation system (ITS) infrastructure, will allow the city to gather traffic data, monitor traffic conditions, and disseminate real-time travel information to drivers from one central site. 1 Six bids were received by the city. The lowest responsive bid was submitted by ADDCO Incorporated. The contract contains an option clause that will permit the city, at the discretion of the City Manager, to purchase up to an additional four signs within one year of acceptance of the original order. Funding is available in the Smart Traffic Signals Account No. 25-9469-8300, and come from the Glendale Onboard (GO!) Transportation Program. The recommendation was to award a contract to ADDCO Incorporated for the purchase of four variable message signs in an amount not to exceed $362,196, taxes included. 2. AWARD OF BID 03-16, WATER METERS This is a request for City Council to approve the purchase of water meters. Four bids were received to supply the Utilities Department with various sized water meters on an "as needed" basis. The different sizes of water meters were listed in the solicitation along with the estimated annual quantities for each size meter. Water meters are needed for new residential and commercial construction and also as part of the meter replacement program. This program allows for more accurate tracking and billing of water usage. Once approved, the contract will continue through August 31, 2004. The bid contains an option clause that will permit the city, at the discretion of the City Manager to extend this agreement for four annual terms. The lowest responsive bid was submitted by Badger Meters Incorporated. Funding is available in the Utilities Department Meter Maintenance Account No. 83- 6443-7520. The recommendation was to award a contract to Badger Meters Incorporated for water meters in an amount not to exceed $367,587.15, taxes included. 3. AIRPORT RESTAURANT TERMINAL LEASE This is a request for City Council authorization to enter into a revised lease agreement with Charles J. Schindler for suite 104, in the terminal building at the Glendale Municipal Airport. Mr. Schindler has been the operator of the Glendale Airport Restaurant since 1998. The term of the lease shall be for a period of 12 months, with four one-year renewal options. To be eligible for renewal, Mr. Schindler must complete certain improvements to the restaurant during the initial 12 month term and each subsequent one-year renewal period. The improvements include replacing the two compressors for the walk in refrigerator and freezer, replace all of the patio furniture, replace all of the seating inside the restaurant, replace the carpeting and install a sun shade device over the entire patio. Mr. Schindler must also provide a written notice to the Airport Manager 90 days prior to the expiration of the active lease term. The base rent of $944.65 and the percentage of gross, 7.25% have remained constant since July 1999. Under this new agreement, the base rent and or the 2 percentage of gross will be adjusted every two years. The rent for the initial 12 months of the lease will have a base rent of $1,200 per month or 7.25% of lessee's gross receipts, whichever is greater. The base rent increases to $1,300 per month and the percentage of gross increases to 7.5% during the second option period. The base rent remains the same and the percentage of gross increases to 8% during the fourth option period. The recommendation was to authorize the entering into of an airport terminal lease for the Glendale Airport Restaurant with Charles J. Schindler. 4. STANDARD LEASE FORM FOR BANK OF AMERICA PLAZA BUILDING This is a request for City Council approval of a standard master lease agreement for suites in the Bank of America Plaza Building. Economic Development and Property Management are in agreement that a standard master lease is needed for the Bank of America Plaza building. NAI Horizon, the company under contract to manage the Bank of America Plaza property for the city, uses the standard master lease agreement in negotiating new and renewal leases on behalf of the city. The terms of the lease agreements remain the same from tenant to tenant, requiring payment of similar annual base rental rates and payment of a proportionate share of common area expenses. NAI Horizon negotiates each lease for rates that reflect fair market prices. The Bank of America building has the opportunity to truly impact professional office development in the downtown area. It contributes approximately 56,387 of rentable square feet to the available office space in the downtown area. The City Center Master Plan states that office development is key to increasing pedestrian traffic during the daytime and early evening hours. It specifically identifies the Bank of America building as an important component to our downtown development. With real estate agreements, "time is of the essence". The more streamlined the leasing process is, and the more flexibility provided to clients, the sooner the city will be able to lease available space. The City Charter does not require City Council approval of leases of personal property or office space within a building. The lease may be signed by the City Manager or his/her designee. Once Council approves the form of the lease, the City Manager would have the authority to sign the lease at whatever terms were negotiated. The Council could give general direction that leases must provide for market rates or not exceed a certain number of years, or just direct staff to enter into leases upon terms deemed by the City Manager to be in the best interest of the city. Staff believes this is beneficial for the city due to the timeliness of obtaining tenants for the Bank of America Plaza property. Approving the master lease will enable the city, through its agent NAI Horizon, to more quickly respond to market demands and potential tenants. 3 The recommendation was to authorize the City Manager to execute all documents necessary for future Bank of America Plaza building leases that use the master lease agreement form. 5. AWARD OF CONSTRUCTION CONTRACT — FY2003-04 ASPHALT OVERLAY PROGRAM This is a request for City Council approval of a contract to J. Banicki Construction, Inc., for construction of the Fiscal Year (FY) 2003-04 Asphalt Overlay Program. The city utilizes a pavement management system to prioritize the conditions and needs of the existing streets. The Streets department is conducting an inventory of the existing street system to estimate the cost to bring streets up to acceptable standards. A report of their findings will be presented at a council workshop in the fall, along with various funding options. The asphalt overlay is required to recondition deteriorated streets, repair damage resulting from construction of various utility lines over the past several years, and improve the ridability on arterial, collector and residential streets throughout the city. The base bid will provide a rubberized asphaltic concrete overlay on approximately one mile of arterial street and three miles of collector streets, including Thunderbird Road from 53rd Avenue to the Arizona Canal Diversion Channel, 45th Avenue from Orangewood to Northern, 47th Avenue from Northern to Olive and Cholla Street from 51st to 59th Avenues. Residential streets are located between Olive and Butler from 43rd to 47th Avenues. This year's program has been bid with four alternates. Three alternates have been included to extend the amount of street that can be overlaid and best utilize the available funding. These alternates include: 83rd Avenue from Bethany Home Road to Glendale Avenue; Myrtle Avenue from 59th Avenue to Grand Avenue; 47th to 51st Avenues between Glendale and Orangewood Avenues. Add alternate number four, the construction of raised medians on Thunderbird Road at 57th Avenue, is one of the GO Transportation Intersection Improvements projects. The raised medians will consist of vertical curbs and concrete pavers to prevent left turning movements at the driveways located near this intersection. Four bids were received and opened at 2:00 p.m., on June 9, 2003. In order to keep the project within budget, the award will be for the base bid, add alternate two - Myrtle Avenue, 59th to Grand avenues and add alternate four - Thunderbird Road Medians. J. Banicki Construction, Inc., a qualified licensed contractor, submitted the lowest combination of base bid and the selected alternates in the amount of $865,372.65. Funds are available in the FY2003-04 Capital Improvement Plan, Street Maintenance, Account No. 12-6232-8300, for the overlay project, $811,344.90, and Intersection Improvements, Account No. 25-9448-8300 for the raised median on Thunderbird Road at 57th Avenue, $54,027.75. 4 ..... ._....... . The recommendation was to approve the contract award to J. Banicki Construction, Inc. in the amount of $865,372.65. 6. PROFESSIONAL SERVICES AGREEMENT — OPEN SPACE AND TRAILS MASTER PLAN This is a request for City Council approval of a professional services agreement with Todd & Associates, Inc., for the development of a citywide Open Space and Trails Master Plan. The purpose of this master plan is to identify specific implementation strategies to conserve open space throughout the city. This is the first master plan to be done for citywide open space and trails. The master plan will be a comprehensive plan combining previously identified open space and trails from the Glendale 2025 Plan. Large and small parcels will be considered as elements to create recreational and multi- modal landscaped corridors with connecting linkages to the city's park system and other public facilities and attractions. A citywide needs assessment will be conducted relative to public open space and trails. An open space and trail system map will be developed that will assure integration with current and future city and county general transportation, economic development, recreation, park and trail plans such as the City Center Master Plan, Glendale Onboard Plan, Arts Master Plan, Parks and Recreation Master Plan, West Valley Multi-Modal Transportation Corridor Master Plan, Western Area Regional Plan, North Glendale Specific Plan and Statewide Comprehensive Outdoor Recreation Plan. Implementation of the plan will occur over several years. In October 2002, 20 firms submitted proposals for the development of two master plans, one for Thunderbird Park and one for Citywide Open Space and Trails. A committee made up of representatives from Parks and Recreation, Transportation, Field Operations, Water Conservation and Engineering reviewed the proposals and narrowed the list to three firms. Interviews were conducted in mid-December 2002 and as a result of these interviews, the committee decided the city's interest would be best served by having separate firms for each of the master plans. Todd & Associates, Inc. was selected as the most qualified firm to perform the work for the Open Space and Trails Master Plan. Todd & Associates, Inc. submitted a detailed scope of work and fee structure in mid-January 2003 which was substantially beyond what the city had budgeted for the project. The city reevaluated its needs and a revised scope of work and fee schedule were submitted within budget in May 2003. Funds in the amount of $126,150 for this agreement need to be transferred from Downtown Greenbelt, Account No. 35-9609-8330 to Citywide Open Space, Account No. 35-9605-8330. The recommendation was to approve a professional services agreement in the amount of$126,150 with Todd & Associates, Inc. 5 7. PROFESSIONAL SERVICES AGREEMENT - THUNDERBIRD PARK MASTER PLAN This is a request for City Council approval of a professional services agreement with Logan Simpson Design Inc., for the development of a masterplan for Thunderbird Park. Thunderbird Park is a regional facility maintained and operated by the City of Glendale Parks and Recreation Department and is a popular park for picnicking, hiking, horseback riding and mountain biking. A Thunderbird Park Master Development Plan was completed in 1967 by Maricopa County, and a Thunderbird Park Site Review was done in 1990. The later site review includes information on location and description of existing park features and possible development scenarios. The master plan is needed to assure users continue to enjoy the mountain preserve in its natural state, while improving the amenities to meet future demands. In October 2002, 20 firms submitted proposals for the development of two master plans, one for Thunderbird Park and one for City-wide Open Space and Trails. A committee made up of representatives from Parks and Recreation, Transportation, Field Operations, Water Conservation and Engineering reviewed the proposals and narrowed the list to three firms. The firms were interviewed in mid-December 2002. At that time the committee decided the city's interest would be best served by having separate firms for each of the master plans. Logan Simpson Design, Inc. was selected as the most qualified firm to perform the work for the Thunderbird Park Master Plan. The review of submittals and establishment of the specific scope of required services for this project occurred between November 2002 and April 2003. The award of this professional services agreement has been scheduled to coincide with development of the Open Space And Trails Master Plan because this project will utilize certain information gathered through the Open Space and Trails public input process. Funds in the amount of $74,968 are available in the FY2003-04 Capital Improvement Plan, Thunderbird Park Improvements, Account No. 36-8530-8330. The recommendation was to approve a professional services agreement with Logan Simpson Design, Inc. in the amount of$74,968. CONSENT RESOLUTIONS 8. LIBRARY USAGE FEES This is a request for City Council to adopt a resolution amending library usage fees. In March 1999, the City Code dealing with the library was reviewed and amended. At that time, the library's fines and fees were reviewed and a resolution outlining the actual amounts to be charged was passed. The Library Advisory Board recently reviewed the established schedule of library fines, based on a request from the City Council during budget workshops, and recommends the adoption of a resolution 6 changing the fines. Recommended changes include increasing overdue charges, increasing the charge for damaged audio-visual cases, and imposing a new charge for items that people have requested and failed to pick up. Increasing overdue fines should result in fewer overdue items and increased access to materials for all library users. The daily overdue charge for most materials, those checked out for the standard loan period, is recommended to be changed from $.10 to $.20. The daily overdue charge for materials circulating for a lesser period such as videos and DVD's is recommended to be changed from $.50 to $1. The recommendation for daily charges for overdue interlibrary loan materials is an increase from $.50 to $1. The cost for a damaged audio-visual case is proposed to increase from $1 to $3. A new fee, to be placed on items that individuals put on reserve but fail to pick up, is recommended to be $.25 for materials from our library, and $2 for interlibrary loan items. The recommendation was to waive reading beyond the title and adopt a resolution amending the overdue library materials fines and usage fees. Resolution No. 3689 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AMENDING THE OVERDUE MATERIALS FINES AND LIBRARY USAGE FEES AT THE GLENDALE MUNICIPAL LIBRARIES; AND ESTABLISHING AN EFFECTIVE DATE 10. NOTICE OF INTENT TO RAISE SEWER USER CHARGES This is a request for the City Council to adopt a resolution declaring the city's intent to raise sewer user charges and setting the date of a public hearing on the proposed increases for September 9, 2003. An in-depth study of the city's water and wastewater system was conducted by consultant Black & Veatch and presented to, and approved by, City Council during workshop on June 5, 2001. The study included an evaluation of the existing rate structure, assessment of the sewer rate calculation formula and evaluation of the Capital Improvement Plan, including projects such as the expansion of the West Area Wastewater Reclamation Facility (WAWRF) and improvements to the 91st Avenue Wastewater Treatment Plant which address both existing and projected treatment requirements. The City Council has reviewed the fiscal year 2003-04 operating budgets and the Capital Improvement Plan for Fiscal Years 2004-13 for the water and wastewater systems. The operating budget included no supplemental requests and the Capital Improvement Plan includes the expansion of the WAWRF and improvements to the 91st Avenue Wastewater Treatment Plant. The water and sewer rate analysis conducted by Black & Veatch recommended an annual 4% sewer revenue adjustment for three years and modification to the sewer user charge schedule. Council approved the first 4% increase on September 25, 2001, 7 and the second increase on September 10, 2002. This will be the third adjustment in the three-year process. These adjustments will have varying effects on residential and commercial customers, depending on water usage. As required by Arizona State Law (A.R.S. Sec. 9-511.01), the Council must adopt a notice of intention to increase water or wastewater rates. Also as required, a copy of the new rate schedule and the Black & Veatch Water and Sewer Rate Study is on file with City Clerk's Office and a public hearing on the proposed increase is scheduled for September 9, 2003. Notice of this public hearing will be published in The Glendale Star not less than 20 days prior to the public hearing date. The actual sewer increase, if approved on September 9, 2003, will become effective with the October 2003 billing cycle. The recommendation was to waive reading beyond title and adopt a resolution declaring the city's intent to raise sewer user charges and setting a September 9, 2003, public hearing date. Resolution No. 3691 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 THIS NOTICE OF INTENTION TO INCREASE SEWER USER CHARGES; SETTING A PUBLIC HEARING ON THE PROPOSED INCREASE; AND FILING A WRITTEN REPORT SUPPORTING THE PROPOSED INCREASE WITH THE CITY CLERK Mayor Scruggs opened the public hearing on Consent Agenda Items 1 through 7 and Consent Resolutions 8 and 10. Mr. Leonard Clark, a resident of the City of Glendale Barrel District, spoke in favor of Consent Agenda Items 1, 3, and 4, as well as Consent Resolution 8. He said, however, he has not yet formed his position with regard to Item 10. Mr. Ron Prothero, a resident of the City of Glendale Ocotillo District, said all of the questions he had were answered prior to the meeting. He voiced his support of Agenda Item 5, stating the rubberized overlays will save the city a lot of money. It was moved by Lieberman and seconded by Frate, to approve the recommended actions on Consent Agenda Item Nos. 1 through 8 and 10, including the approval and adoption of Resolution No. 3689 New Series, and Resolution No. 3691 New Series. The motion carried unanimously. 9. INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF PHOENIX FOR A BICYCLE UNDERPASS AT 43RD AND PEORIA AVENUES Mr. Jim Book, Transportation Director, presented this item. This is a request for City Council approval of an Intergovernmental Agreement (IGA) with the City of Phoenix to provide matching funds in the amount of $176,000 to construct a bicycle underpass at the intersection of 43rd and Peoria Avenues. 8 Construction of this project will allow Arizona Canal/Diversion Channel (ACDC) pathway users to pass beneath the intersection of 43rd and Peoria Avenues instead of crossing these busy arterial streets. Completion of the project will improve bicycle and pedestrian safety and promote the use of non-motorized travel for transportation purposes. The underpass project will provide a below-grade crossing for the existing ACDC pathway on the north side of the flood diversion channel. The project includes approach ramps for pathway connections, security lighting and landscaping. The City of Phoenix has completed the design and the project contract has been awarded in an amount of $3,489,869. Phoenix is managing construction of the project with Federal Highway Congestion, Mitigation and Air Quality (CMAQ) funds paying for $2,163,100 of the project cost. Phoenix is also providing $1,150,769 in matching funds that includes funding for costs exceeding the original cost estimates. The City of Glendale will provide matching funds in the amount of $176,000 with funds available from the Transportation Department's Streets and Parking Account No: 31-9433-8300. The recommendation was to waive reading beyond the title and adopt a resolution authorizing the City Manager to enter into an Intergovernmental Agreement with the City of Phoenix to construct a bicycle underpass at 43rd and Peoria Avenues. Resolution No. 3690 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 AN INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF PHOENIX FOR THE BICYCLE UNDERPASS AT 43RD AND PEORIA AVENUES Councilmember Lieberman noted the city previously discussed tunnels when it considered constructing one under Bell Road. He said, ultimately the city determined safety factors made a tunnel undesirable. He stated he does not support the project, asking how they will be able to protect people in the tunnel or prevent homeless people from using it as shelter. He noted the city has had trouble with people being attacked while utilizing the above group pathway. Mr. Book said there have been a number of tunnels paralleling the ACDC since Council last debated the issue. He said, while there have been a few instances where people have been attacked, the number of instances is quite negligible. Councilmember Lieberman reiterated his opposition to the project, stating he could not envision the tunnel being safe unless officers are stationed at each end. Mr. Book noted the City of Phoenix completed a tunnel at 19th Avenue and accelerated construction of the tunnel at MetroCenter due to the number of cyclists and pedestrians struck by automobiles. He assured Councilmember Lieberman that the trail users and pedestrians prefer the tunnels. Councilmember Lieberman said, while he understands that tunnels decrease the number of accidents involving cyclists and automobiles, he continues to be fearful of creating another type of unsafe situation. 9 Councilmember Martinez asked if there are any statistics indicating a higher instance of crime in tunnels. Mr. Book said he is not aware of any statistics. Councilmember Martinez pointed out a tunnel goes under Union Hills at 59th Avenue. He voiced his support of the project. Councilmember Clark asked if any consideration was given to a pedestrian overpass. Mr. Book said, while he does not know if an overpass was considered for the 43rd Avenue and Peoria intersection, he knows that as they progressed down the canal system, they have consistently looked at undergrounding the tunneling system. He explained overpasses have to be considerably higher than underpasses have to be deep in order to clear truck traffic. He said the grade change required for overpasses make them a less desirable option. Councilmember Frate asked if any traffic closures will be required to complete construction. Mr. Book said, while the roadways will be open to traffic, the number of lanes could be restricted during construction. Mr. Book confirmed for Mayor Scruggs that the tunnel is considered a City of Phoenix facility and is part of a much larger pathway running from 71st and Glendale Avenues to South Phoenix. Mayor Scruggs said she shares Councilmember Lieberman's concerns about the tunnel, however, she will support the project because it is part of a larger route system and Phoenix will be solely responsible for maintenance, landscaping, lighting and other related project improvements. Vice Mayor Eggleston pointed out that hundreds of cyclists and pedestrians use the pathway. He asked if the city's Bicycle Committee has looked at the project's plans. Mr. Book stated the Committee unanimously supports the project, as does the Citizen Transportation Oversight Committee. He pointed out cyclists and pedestrians are currently faced with two at-grade crossings in order to continue on the pathway. Vice Mayor Eggleston asked if people could choose to cross at the intersection rather than going through the tunnel if they were concerned about its safety. Mr. Book responded yes. Councilmember Clark said she too shares Councilmember Lieberman's concerns, but believes the project would continue whether Council approves the intergovernmental agreement or not. She said, in an effort to be a good neighbor, she will support the agreement. She pointed out tunnels will also be used along the Bethany Home Outfall Channel trail system. It was moved by Clark and seconded by Frate, to approve the recommended actions on Consent Agenda Item No 9, and adoption of Resolution No. 3690 New Series. The motion carried by a vote of 6 to 1, with the following Councilmembers voting "aye": Clark, Eggleston, Frate, Goulet, Martinez and Scruggs. Councilmembers voting "nay": Lieberman. 10 PUBLIC HEARING — LIQUOR LICENSES Councilmember Lieberman asked to have Item 11 be heard separately. 11. LIQUOR LICENSE NO. 3-880 ECKERD DRUGS NO. 5302 Mr. Michael Bailey, Regulatory and Communications Manager, presented this item. This is a request for a new series 10 (off-sale retail, beer & wine) license for Eckerd Drugs No. 5302, which will be located at 18591 N. 59th Avenue. There have been no prior businesses at this location. The approval of this license will increase the total number of liquor licenses in this area by one. 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. Councilmember Lieberman asked how the license had been obtained by Eckerd Drugs. Mr. Bailey explained the license was transferred from another Eckerd corporate entity. 12. LIQUOR LICENSE NO. 3-882 CACTUS WILLY'S BAR & GRILL This is a request for a person transfer of a series 6 (on- & off-sale retail, all liquor) license for Cactus Willy's Bar& Grill located at 6322 W. Bell Road. The previous owner operated this business as Cactus Willy's Bar & Grill 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. 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. 3-880 for Eckerd Drugs No. 5032 and No. 3-882 for Cactus Willy's Bar & Grill, to the State of Arizona Department of Liquor Licenses and Control, with the recommendation for approval. The motion carried unanimously. PUBLIC HEARING — ORDINANCE 13. MODEL CITY TAX CODE CHANGE PERTAINING TO RESIDENTIAL RENTAL PROPERTY Mr. Chris Zapata, Deputy City Manager, presented this item. This is a request for City Council approval of an ordinance modifying the Model City Tax Code relating to residential rental property. At the June 3, 2003 Council workshop, staff presented information on residential rental property and the differences between Glendale's allowed exemptions for residential rental property and those of the other Valley cities. This section of the code was adopted on June 27, 1989. In reviewing Glendale City Code 21.1-455 as it relates to the city's business practices, staff concluded that a modification to the existing ordinance will result in an equitable residential rental tax collection exemption policy that replicates the commercial rental property tax exemption policy. Currently, all commercial rental property is taxable. Four or less residential rental properties in the City of Glendale are exempted. The proposed elimination of Sec. 21.1-455(k) will make all residential rentals taxable in the City of Glendale. The tax rate is 1.8% for residential rental property. Registration of all residential rental properties with the Tax & License Division will provide Code Compliance with a more accurate accounting of residential rental properties to enhance the inspection aspect of the Residential Property Code adopted in 1999. Arizona Revised Statutes 33-1902 requires all residential rental property owners to register with the County Assessor. This ordinance will enable the City to mirror the registration requirement on a local level. Property owners who rent their residential property will be required to obtain a privilege (sales) tax license with the City of Glendale. The cost of the license is $50 annually. Only one license is required for any number of dwelling units owned by the same person. A public notice was posted in accordance with A.R.S. Sec. 42-6054 (d) advising of the public hearing regarding the G.C.C. Staff met with members of the Arizona Multihousing Association and advised them of the proposed ordinance. 12 Council directed staff to proceed with the recommended change to the residential rental property exemption. If this ordinance is adopted, the effective date will be September 1, 2003. The recommendation was to conduct a public hearing and waive reading beyond the title and adopt an ordinance modifying the Glendale Model City Tax Code pertaining to residential rental property. Councilmember Clark noted the ordinance will not take effect until September 1, asking if the license will be prorated. Mr. Zapata responded yes. Mayor Scruggs opened the public hearing on Item 13. Mr. Leonard Clark, a resident of the City of Glendale Barrel District, expressed concern the tax will place an undue hardship on low income families who already find it difficult to get approved to rent apartments. Mayor Scruggs closed the public hearing. Ordinance No. 2328 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AMENDING THE MODEL CITY PRIVILEGE (SALES) TAX CODE OF THE CITY OF GLENDALE BY DELETING SUBSECTION (K) OF SEC. 21.1-445 RELATING TO RESIDENTIAL RENTAL PROPERTIES; AND DECLARING AN EFFECTIVE DATE It was moved by Frate, and seconded by Goulet, to approve Ordinance No. 2328 New Series. Vice Mayor Eggleston stated he does not support moving forward with the tax until further research can be done. He explained he is troubled by the numerous fee and tax increases enacted over the past year, pointing out planning and permit fees, sanitation fees, the sales tax on phones, Parks and Recreation fees, sewer fees and library fines have all been increased. Councilmember Clark expressed her opinion the issue is one of equality, stating all properties, both exempt and non-exempt, could be subject to an inspection visit which requires staff time. She said the ordinance spreads the cost of code enforcement across all properties in Glendale. With regard to the fee increases cited by Vice Mayor Eggleston, she pointed out the sanitation and sewer fee is an Enterprise Fund and required to pay for itself. She said the other fees are optional and apply only to those residents who choose to utilize the programs. Councilmember Lieberman stated he also sees it as a way of leveling the playing field. He said, currently, a property owner with three high value units does not have to pay the tax, while another owner with six smaller, less valuable units does. He said the only way to be fair is to impose the same tax on everybody, regardless of the number of 13 units they own. He pointed out, in all probability, the tax increase will be passed on to the tenants. Councilmember Martinez stated he also supports the ordinance. He clarified the increases imposed on other programs throughout the city were not driven by the city's budget shortfall, but in response to the increasing cost of doing business. Councilmember Frate questioned whether ARS 33-1902, which requires all residential rental property owners to register with the County Assessor, is strictly enforced. He asked if the city will share information with the County Assessor to help in their enforcement efforts. Mr. Zapata said they have already started to share information, noting the County Assessor has close to 5,000 properties on their books. Vice Mayor Eggleston said he is not convinced it is the right thing to do, therefore, he will not support the motion. Upon a call for the question, the motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Martinez, and Frate. Members voting "nay": Eggleston and Scruggs. ORDINANCES 14. PROPERTY MAINTENANCE CODE Mr. Dan Gunn, Code Compliance Administrator, presented this item. This is a request for City Council to approve adopting a Property Maintenance Code. At a Council workshop in June 2003, staff was directed to bring forward a property maintenance code that would establish new health and safety standards for residential and commercial properties. The recommended code language was provided in the Final Report of the Property Maintenance Subcommittee, chaired by Councilmember David Goulet with Councilmembers Steven Frate and Joyce Clark as members. The report detailed the extensive public input process that occurred while developing the language for the property maintenance code. The code establishes new standards for exterior health and safety categories including: exterior windows, doors and screens; fences, screen walls, and retaining walls; landscaping; protective treatment; painted surfaces; roofs and roof coverings; and general exterior maintenance of property. The implementation of the property maintenance code will occur October 1, 2003. A three-month period between adoption of the ordinance and enforcement will be used to implement a community awareness campaign. This campaign will utilize publicity in print and electronic media, door hangers on homes, and presentations at 14 public meetings. The goal of the campaign is to provide residents with advance notice of the adopted property maintenance code. The recommendation was to waive reading beyond the title and adopt an ordinance implementing a property maintenance code. Councilmember Clark asked what major changes will be implemented. Mr. Gunn explained four new definitions and seven new codes will be added. He explained the codes include a general code related to accumulative violations; requirements concerning the exterior surfaces of structures, fences, walls, roofs, window screens, doors and door frames; and landscaping requirements. Councilmember Clark asked if the city will also implement new programs to assist qualified homeowners. Mr. Gunn said the city already has assistance programs in place, however, a new program has been established in cooperation with Home Depot. Councilmember Clark asked how they intend to educate the public about the new codes. Mr. Gunn said they are currently working with the Communications Department and are in the process of developing an informational brochure. He said Channel 11, press releases, neighborhood meetings and district meetings will also be used to further educate the public. He stated people who have questions should contact the Code Compliance Office. Councilmember Lieberman asked if Code can require an inside condominium unit to make improvements if it is not visible from the street. Mr. Gunn responded yes. In response to Councilmember Martinez's question, Mr. Gunn explained the city's repeat or chronic offender policy currently applies to property owners with three violations within a 12 month period. He said the policy was modified last October, extending the time frame to 24 months. Vice Mayor Eggleston asked about the criteria used when determining whether a violation has occurred. Mr. Gunn explained the purpose of the codes is to deal with conditions that represent a clear detriment to the public health and safety or may substantially impact the livability or stability of neighborhoods. He said a certain amount of discretion and reasonableness applies when determining whether a property is in violation. He stated the ultimate standard they have to meet is whether the case would be accepted for prosecution and, if so, is it prosecutable in a court of law. He explained the only time a property owner would be taken to court is if they refuse to make any reasonable effort to rectify the violation. Councilmember Frate asked how profound an effect will the ordinance have on the city over a period of time. Mr. Gunn said he has seen significant changes to the city's codes during his tenure in the Code Department. He said the proposed code changes will provide additional tools to maintain the city at the level most people desire. 15 Mayor Scruggs opened the public hearing on Item 14. Mr. Leonard Clark, a resident of the City of Glendale Barrel District, said, while he generally approves of the changes, he wants Council to keep the city's agricultural heritage in mind. He questioned how the code prohibiting bare dirt will affect homeowners who have gardens. He said he is concerned about the ever increasing level of regulation and taxation. Mayor Scruggs closed the public hearing. Councilmember Martinez said a neighborhood was surveyed and asked to identify top priority issues. He stated one of the first issues identified was homeowners who do not maintain their properties. He pointed out the city held a number of meetings and sought public input during the process and a majority of the residents who responded were in support of the city's efforts to enhance the codes. Ordinance No. 2329 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AMENDING THE GLENDALE CITY CODE, CHAPTER 25, ARTICLES I AND II, RELATING TO PROPERTY MAINTENANCE; AND SETTING FORTH AN EFFECTIVE DATE It was moved by Goulet, and seconded by Clark, to approve Ordinance No. 2329 New Series. Councilmember Goulet explained, in response to repeated discussions about visual blight in neighborhoods, a subcommittee was established to look at developing tools that would provide relief. He expressed appreciation to the other organizations and corporations who have offered to partner with the city to help residents who are unable to make the necessary improvements. He also thanked city staff for their efforts to improve the quality of life in the city. Councilmember Clark reported speeding and code complaints are the two most common complaints. She stated a lot of older neighborhoods are not governed by Homeowners Associations and residents in those neighborhoods get very frustrated by other residents who do not properly maintain their properties. She said, regardless of the investment made, people have the right to live in, protect and enjoy their homes. She stated the demand for stronger codes has existed for a very long time and she is pleased to support the proposed changes. Mayor Scruggs acknowledged the awesome power the government has to control what people do and to take people's money for what is determined to be the greater good. She said, while she has some reservations, she supports the work of her colleagues and staff, as well as the amount of citizen input that went into the proposed changes, therefore, she will support the item. She cautioned that people who issue complaints will have high expectations as to how the city will address their complaints. 16 She said she has a serious concern about the ability of some to afford the required improvements. She acknowledged programs are in place to help low income property owners, stating, however, there are many people who do not qualify as low-income, but are obligated to an extent that precludes them from being able to afford costly improvements. Upon a call for the question, the motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Eggleston, Goulet, Lieberman, Martinez, Frate and Scruggs. Members voting "nay": none. 15. ADOPTION OF AN ORDINANCE AMENDING THE CITY CODE RELATED TO CEMETERY OPERATIONS It was moved by Lieberman, and seconded by Clark, to remove item 15 from the table. The motion carried unanimously. Mr. Stuart Kent, Field Operations Deputy Director, presented this item. This is a request for City Council approval of revisions to Chapter 11 of the Glendale Municipal Code which address operations of Glendale Memorial Park Cemetery. The following summarizes these changes: Section 11-2: Clarifies the purpose of the perpetual care fund and expands uses of the fund to include improvements to the property. Section 11-3: Eliminates the requirement that sales revenues must be deposited in the perpetual care fund and instead specifies that all revenues will be deposited in the general fund. Language is retained stating the fund's investment earnings will continue to accumulate in the perpetual care fund. Finally, the definition of fund self- sufficiency is clarified. Section 11-4: The current section is deleted and replaced by a retitled section authorizing specific operating practices. This language emphasizes best practices; restricts sales to residents, family of deceased residents, or family of those interred at the cemetery; provides a pricing structure based on a market survey and a 20% discount on the cost of interment rights for residents; and allows the City Manager or designee to annually set new prices based on the market survey and established discount. These changes will benefit Glendale by focusing our customer base on residents and providing a substantial discount on burial costs for residents. The recommendation was to waive reading beyond the title and adopt an ordinance amending Glendale City Code, Chapter 11 relating to Glendale Memorial Park Cemetery operations. 17 Mayor Scruggs opened the public hearing on Item 15. Mr. Leonard Clark, a resident of the City of Glendale Barrel District, said, while he believes Council has the best of intentions, he does not like the fact that the funds will be moved from the Cemetery Fund to the General Fund. He questioned whether the proposed changes will violate the state's law concerning irrevocable trusts. He said he was told by a staff member that anyone purchasing a lot utilizing the 36 month payment plan will now be subjected to an additional $400 to $600 interest charge. Mayor Scruggs closed the public hearing. Vice Mayor Eggleston asked about the interest fee referenced by Mr. Clark. Mr. Kent explained interest will be charged on the remaining balance if a person has not paid the full amount after 36 months. Vice Mayor Eggleston asked what is the cemetery's annual operating cost. Mr. Kent said it has ranged between $350,000 and $450,000 for the past few years, however, the budget for the upcoming year totals $236,000. He said staff at the cemetery, as well as employees in the Field Operations Department, are committed to making sure the site is well maintained. Vice Mayor Eggleston asked if the amount charged for the plots cover the maintenance and operating costs. Mr. Kent said, historically, the proceeds from sales have gone to the Perpetual Care Fund and the General Fund paid the full cost of the cemetery operations. He said, under the new arrangements, all of the proceeds from the sales of the cemetery will go into the General Fund to buy down the operating budget. He said their intent is to use the trust fund monies to maintain the cemetery once all of the plots have been sold. Mayor Scruggs asked if the ordinance indicates interest will be charged if the full amount has not been paid within 36 months. Mr. Kent explained fee setting and other related issues will be designated to the City Manager and are not specifically set forth in the ordinance. Mayor Scruggs clarified passing of the ordinance will not cause the cemetery to start assessing interest fees. Councilmember Martinez asked how the cemetery's fees compare to other cities. Mr. Kent stated Glendale's resident rate is considerably lower than other cities and, in fact, the non-resident rate is approximately 75 to 80 percent of the going rate at other area cemeteries. He said, therefore, they made a conscious decision to bring the cemetery's rates up to a level comparable with other cities. Ordinance No. 2330 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AMENDING GLENDALE CITY CODE, CHAPTER 11, ARTICLE I RELATING TO CEMETERY OPERATIONS AND THE CEMETERY PERPETUAL CARE FUND; AND ESTABLISHING AN EFFECTIVE DATE It was moved by Lieberman, and seconded by Clark, to approve Ordinance No. 2330 New Series. 18 Mayor Scruggs commented that, with passage of the ordinance, the irrevocable trust, known as the Perpetual Care Fund, will still be in place and will continue to accrue interest. She stated the decision to divert the funds to the General Fund will further assure that the cemetery is well maintained. Upon a call for the question, the 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. 16. FISCAL YEAR 2002-03 BUDGET AMENDMENTS Ms. Sherry Schurhammer, Budget Director, presented this item. This is a request for City Council approval of fiscal year (FY) 2002-03 budget amendments. A budget amendment is a transfer of appropriation authority from one fund to another. During the course of FY 2002-03 capital project carryover was reconciled and scheduled vehicle and technology replacements for General Fund departments were postponed. When departments prepared their FY 2002-03 capital project budgets, they estimated the amount of carryover savings they would have. At the end of the fiscal year, the Budget Department reconciled each department's actual savings with their estimated carryover and then increased or decreased their budgets accordingly. In addition, part way through FY 2002-03, management indicated that regularly scheduled vehicle and technology replacements should be postponed for General Fund departments. Therefore, budgeted vehicle and technology replacement expenditures were saved and the savings were diverted to contingency funds. The recommendation was to waive reading beyond the title and adopt an ordinance approving the Fiscal Year 2002-03 budget amendments. Ordinance No. 2331 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 TRANSFER OF FUNDS BETWEEN BUDGET ITEMS IN THE ADOPTED FISCAL YEAR 2002-2003 BUDGET; AND DECLARING AN EMERGENCY It was moved by Clark, and seconded by Lieberman, to approve Ordinance No. 2331 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. 19 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, July 15, 2003, to be followed by an Executive Session pursuant to A.R.S. 38- 431.03. The motion carried unanimously. CITIZEN COMMENTS Ms. Kathleen Lewis, a resident of the City of Glendale Cholla District and a representative of the Glendale Citizens and Businesses for Responsible Development, said she received numerous comments from people who watched the last meeting wherein she addressed the issue of empty big-box stores. She said they were interested in seeing an ordinance developed to address the issue. She stated Glendale, as a leader in developing a big box ordinance, should also be a leader in dealing with empty big boxes. She said the problem exists nationwide, noting several conferences and symposiums are being held to discuss ways to address the issue. She asked Mr. Beasley to contact her to further discuss the issue. Mayor Scruggs reported Councilmember Clark brought the issue forward at the last Council workshop, noting she further expanded it to include other vacant shopping centers and stores located throughout the city. She asked Mr. Beasley to send a letter to Glendale Citizens and Businesses for Responsible Development explaining how the issue will proceed through the city processes. Ms. Debra Kist, a resident of the City of Glendale Barrel District, thanked the Council for the spectacular 4th of July show. She asked if the Northern Crossings' Wal- Mart will receive any incentives, tax breaks or developer fees and, if so, how much will they receive. She reiterated their request for a police substation at Northern Crossings. She commented on the large turnout at the June 28 community meeting about a proposed Wal-Mart Supercenter. She asked if a special use permit is required because of the store's size. She asked why they need another Wal-Mart Supercenter, suggesting they try a different type of development, such as an executive or business center. Mayor Scruggs asked Mr. Beasley to respond to Ms. Kists' comments and questions. She clarified Wal-Mart will develop the parking lot area, but Mr. Ellman is still the developer. Mr. Leonard Clark, a resident of the City of Glendale Barrel District, thanked Council for the 4th of July show. He stated he believes the Council has the city's best interest at heart and he appreciates the fact that the Council respects the opinions of the citizens who speak before it. He urged Council to work to establish and maintain good relations with other west valley cities, stating a unified front will help Glendale and 20 the west valley better compete with Phoenix and other east valley cities. He said Glendale and the west valley need to come into their own and realize that they are not dependent upon Phoenix. Mr. Rick Tannehill, a resident of the City of Glendale Barrel District, stated the time has come for a big box restoration ordinance. He said, while there are other vacancies throughout the city, the big box stores create the biggest eye sores. He noted Gilbert passed an ordinance restricting the location of big box stores and Keno Hawker is pressing for an ordinance similar to that being proposed by Glendale Residents and Businesses for Responsible Development. He said for the past two years their group has lobbied for bonding of all big box tenants and stores for redevelopment and retrofitting; placing an additional property tax on the property 90 days after closing; and building in retrofit items to allow the building to be split into smaller stores once vacated. He asked Council to direct staff to start looking at a restoration ordinance. COUNCIL COMMENTS AND SUGGESTIONS Councilmember Clark thanked Special Events staff for the outstanding 4th of July fireworks display and family event. She announced a Northern Avenue Parkway open house will be held July 10 at Desert Garden Elementary School, providing the public with an opportunity to review the concepts and design plans. Councilmember Lieberman also thanked staff for the fireworks display and commented on the wonderful relationship that exists between Glendale Community College and the city. He announced the Glendale Adult Center will celebrate its grand opening July 15. Vice Mayor Eggleston encouraged everyone to attend the Adult Center's Grand Opening ceremony, noting it will begin at 9:00 a.m. Councilmember Frate announced a meeting will be held on July 10 to educate Glendale citizens on the West Nile Virus and what the city is doing to prevent and prepare for problems. He urged people to watch children around water. Mayor Scruggs discussed the joint meeting that was held earlier in the day between ASU West and the City Council. She said Dr. Crow, President of ASU, asked to meet with the City of Glendale for the purpose of sharing his vision and getting the city's input on how the two entities can work together in partnership. She noted Dr. Crow predicted ASU will eventually be the largest public university in the United States, with the majority of its growth occurring at the west and east campuses. She explained the city updated Mr. Crow on the projects that are currently underway and educated him on the city's development interests and key objectives. She said Dr. Crow was extremely impressed with the city's presentation. 21 ADJOURNMENT There being no further business, the meeting was adjourned at 9:30 p.m. Pamela Hanna - City Clerk 22