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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 6/1/2004 MINUTES OF THE REGULAR MEETING OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, HELD TUESDAY, JUNE 1, 2004, 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; Jon Paladini, Interim 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 five resolutions and five 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. BIDS AND CONTRACTS 1. AMENDMENT ONE: PROFESSIONAL SERVICES AGREEMENT — THUNDERBIRD PASEO LANDSCAPE IMPROVEMENTS Mr. Craig Johnson, Assistant City Engineer, presented this item. This is a request for City Council approval of amendment number one to the professional services agreement with DMJM+Harris, Inc. for the Thunderbird Paseo Park Landscape Improvements project. This amendment will provide for final design and construction administration services for this project. The improvements resulting from this project are consistent with the Glendale Parks and Recreation Master Plan. On September 13, 2003, the firm of DMJM+Harris was retained to assess the existing site conditions and prepare conceptual landscape and irrigation alternatives for areas within Thunderbird Paseo Linear Park, located between 56th and 67th avenues. On February 26, 2002, Council adopted the Glendale Parks and Recreation Master Plan. The improvements to be made as part of this project include a desert interpretive garden east of 67th Avenue, a garden for the visually impaired west of 67th Avenue, improvements to the existing irrigation system, erosion control at the embankment east of 59th Avenue, and installation of more than 700 trees and 2,000 shrubs along the nature trail. 1 All elements of this project are in compliance with the adopted master plan. Development of the master plan included numerous public meetings held to gather input from the community and follow up meetings held to review the resulting designs. The total amount of this amendment is $34,867 bringing the total contract amount to $50,108.25. Funds for this project are available in Thunderbird Paseo Park Dev., Account No. 35-8521-8330. Grants Capital One-Time Budgeted Unbudgeted Total Expense Cost X X $34,867 Account Name, Fund, Account and Line Item Number: Thunderbird Paseo Park Dev. Account No. 35-8521-8330 The recommendation was to approve amendment number one to the professional services agreement with DMJM+Harris, Inc. in the amount of $34,867. It was moved by Eggleston, and seconded by Martinez, to approve amendment number one to the professional services agreement with DMJM+Harris, Inc. in the amount of $34,867. The motion carried unanimously. 2. AMENDMENT TWO: PROFESSIONAL SERVICES AGREEMENT — CHOLLA WATER TREATMENT PLANT SOLIDS HANDLING FACILITY Mr. Craig Johnson, Assistant City Engineer, presented this item. This is a request for City Council approval of amendment number two to the professional services agreement with HDR Engineering, Inc. for the performance of additional construction administration services for the Cholla Water Treatment Plant Solids Handling Facility project. Completion of the project required an additional 12 months beyond the originally scheduled completion date due to the bankruptcy of the prime contractor, requiring HDR to remain on site to perform their duties during this extended period. Council awarded the construction contract for this project to Centric-Jones Constructors in January 2002, in the amount of $11 ,495,000, which was $1 ,605,000 less than the budgeted amount for the project. The original contract was to be completed in May 2003 or be subject to liquidated damages of $1 ,780 per day until completion. The contract with Centric-Jones was terminated in May 2003 for failure to perform work with sufficient workmen to assure prompt completion and inability to pay subcontractors and suppliers. The bonding company for Centric-Jones took over the contract in July 2003 and replaced Centric-Jones in August 2003 with Hunter Contracting. The contractor's liquidated damages continued to accumulate during the completion of the project except for the periods of city approved schedule extensions. 2 The construction work on the project was completed in May 2004. The 12-month extension to complete the project impacted HDR's costs for construction administration by $645,000. A total of $364,900 has been assessed as liquidated damages for delays in completing the work, and will be withheld from the city's final payment to the bonding company. In addition to the liquidated damages, $50,000 was identified as construction contract savings on the project. This project savings amount, coupled with the liquidated damages withheld, reduces the total cost to the city for this project by $414,900. Council approved the professional services agreement with HDR on November 11, 2000. Council then approved amendment number one to HDR's agreement on February 12, 2000 for the performance of construction administration services in the amount of $1,762,932 through May 2003. The city terminated the construction contractor, Centric-Jones, in May 2003 and contracted with the bonding company to complete the project. The project will be complete May 2004. Construction of the Solids Handling Facility supports the increase in water quality processing at the Cholla Water Treatment Plant. Although construction administration costs incurred by HDR due to the 12 month delay total $645,000, the total project cost to the city was reduced by $414,900 due to the comprehensive liquidated damages. Funds for this project are available in Cholla Water Treatment Plant Solids Handling Facility, Account No. 83-9272-8300. Grants Capital One-Time Budgeted Unbudgeted Total Expense Cost X X $645,000 Account Name, Fund, Account and Line Item Number: Cholla Water Treatment Plant Solids Handling, Account No. 83-9272-8300 The recommendation was to approve amendment number two to the professional services agreement with HDR Engineering, Inc. in the amount of $645,000. It was moved by Lieberman, and seconded by Frate, to approve amendment number two to the professional services agreement with HDR Engineering, Inc. in the amount of $645,000. The motion carried unanimously. 3. APPROVAL OF CONSTRUCTION MANAGER AT RISK AGREEMENT FOR THE ZONE 4 WATER TREATMENT PLANT Mr. Craig Johnson, Assistant City Engineer, presented this item. 3 This is a request for City Council to approve a construction manager at risk (CMAR) agreement with the firm of Sundt Construction, Inc., to provide design support services for the Zone 4 Water Treatment Plant. On August 15, 2000, the Arizona State Legislature enacted a law that allows municipalities to select the best-qualified construction firms to work with the municipality and the designer to perform design support services, conduct the bidding for a project and manage the construction. The contractor performing in this capacity is referred to as the CMAR. This new procurement process allows a contractor to be selected on the basis of qualifications and experience. The CMAR process provides the city with the best-qualified contractor who will be part of the project team from design through construction. The inclusion of the contractor at this stage of the project allows the city and design engineer to utilize the experience of the contractor in scheduling, budgeting, design review and construction planning. On January 22, 2004, a Request for Qualifications was advertised in the Glendale Star with responses received from six construction firms. Three firms were interviewed on March 25, 2004. The interview committee included staff from the city's Utilities and Engineering departments and an independent contractor representative. Sundt Construction, Inc., was selected as best qualified CMAR for this project. The planned Zone 4 Water Treatment Plant will provide a new drinking water source for western Glendale and the City Center Master Plan area. Currently, the Cholla Water Treatment Plant provides the majority of the drinking water in these areas. Since the Zone 4 Water Treatment Plant will be closer to these areas than the Cholla facility, it will be able to more efficiently meet the growing demands. A public information component is included as part of this project to keep citizens informed. The cost of Sundt Construction, Inc. design support services will not exceed $365,091.50. Upon completion of design, Sundt Construction, Inc., as the CMAR will develop a guaranteed maximum price for construction of the improvements designed, and staff will return to Council for approval and authorization to proceed with construction. Funds are available for this project in Additional Water Capacity, Account No, 83-8056-8300. 4 Grants Capital One-Time Budgeted Unbudgeted Total Expense Cost X X $365,091.5 0 Account Name, Fund, Account and Line Item Number: Additional Water Capacity, Account No. 83-8056-8300 The recommendation was to approve the construction manager at risk agreement with Sundt Construction, Inc., in an amount not to exceed $365,091.50. It was moved by Clark, and seconded by Goulet, to approve the construction manager at risk agreement with Sundt Construction, Inc., in an amount not to exceed $365,091.50. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Eggleston, Martinez, Frate, and Scruggs. Members voting "nay": Lieberman. 4. PROFESSIONAL SERVICES AGREEMENT FOR CITY HALL AND SATELLITE FACILITIES SPACE NEEDS ASSESSMENT Mr. Craig Johnson, Assistant City Attorney, presented this item. This is a request for City Council approval of a professional services agreement with Langdon Wilson Architecture Planning Interiors to conduct a citywide facilities space needs assessment and City Hall master plan update. The city conducted a space needs study of City Hall in August 2000 which provided guidelines for the recent movement of some departments. The study recommended that the plan be reviewed every two years. Since the development of the plan, the city has completed a master plan for the Field Operations Complex, new Adult Center and Public Safety facilities, and is planning to conduct a study for a new City Court building. A Request for Qualifications to conduct the needs assessment was issued to over 100 architectural consultants and eight proposals were received. A review board comprised of Engineering, Parks and Recreation, Utilities, and City Manager's office staff evaluated the proposals and selected Langdon Wilson Architecture Planning Interiors as the best-qualified firm to perform services needed on this project. The project will provide guidelines for developing efficient and effective space for staff to accomplish exceptional service delivery. The total cost for the City Hall and Satellite Facilities Space Needs Assessment shall not exceed $202,000. Funds for this project are available in HR Remodel and Space Study, Account No. 97-8020-7330. 5 Grants Capital One-Time Budgeted Unbudgeted Total Expense Cost X X $202,000 Account Name, Fund, Account and Line item Number: HR Remodel and Space Study, Account No. 97-8020-7330 The recommendation was to approve the professional services agreement with Langdon Wilson Architecture Planning Interiors in the amount of $202,000. It was moved by Clark, and seconded by Lieberman, to approve the professional services agreement with Langdon Wilson Architecture Planning Interiors in the amount of $202,000. The motion carried unanimously. ORDINANCES 5. ARIZONA PUBLIC SERVICE UTILITY EASEMENTS AT 6210 WEST MYRTLE AVENUE Ms. Kathie Sholly, Property Manager, presented this item. This is a request for the City Council to grant two underground power distribution easements to Arizona Public Service (APS) at 6210 West Myrtle Avenue. The purpose of these easements is to allow APS to service the city's Field Operations complex. The city requested APS to install underground power utilities to service the newly constructed Field Operations Complex, which will be utilized to better service the citizens of Glendale. APS requires easements to protect its facilities and complete the installation. The recommendation was to waive reading beyond the title and adopt an ordinance authorizing the City Manager to execute two underground electrical power easements in favor of Arizona Public Service Company. Ordinance No. 2381 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 TWO UNDERGROUND ELECTRICAL POWER EASEMENTS IN FAVOR OF ARIZONA PUBLIC SERVICE COMPANY AT 6210 WEST MYRTLE AVENUE TO SERVICE THE CITY'S FIELD OPERATIONS COMPLEX; AND ORDERING THAT A CERTIFIED COPY OF THIS ORDINANCE BE RECORDED. It was moved by Lieberman, and seconded by Frate, to approve Ordinance No. 2381 New Series. Motion carried on a roll call vote, with the following 6 Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, Frate, and Scruggs. Members voting "nay": none. 6. ARIZONA PUBLIC SERVICE UNDERGROUND POWER EASEMENTS AT ARROWHEAD MANOR ESTATES BOOSTER PUMP SITE Ms. Kathy Sholly, Property Manager, Finance Controller, presented this item. This is a request for the City Council to grant two electric power distribution easements in favor of Arizona Public Service Company (APS) across city-owned property west of the 51st Avenue alignment, south of Arrowhead Lakes Drive, in the Arrowhead Manor Estates subdivision. The purpose of this easement is to allow APS to formally continue service to the city's booster pump site located within this development. As part of the construction of the city's booster pump site in the Arrowhead Manor Estates subdivision, new electrical service was designed and installed by APS. Recently, it came to APS' attention that formal easements for these facilities were never requested or obtained from the city. These easements are now being requested to formally acknowledge the presence of the existing APS facilities. Two easements are being requested to distinguish that portion of the APS line that falls within the city's booster pump site from that portion that crosses an equestrian trail originally dedicated by the developer to the city. The recommendation was to waive reading beyond the title and adopt an ordinance authorizing the City Manager to execute two underground electrical power easements in favor of Arizona Public Service Company. Ordinance No. 2382 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 A UTILITY EASEMENT IN FAVOR OF ARIZONA PUBLIC SERVICE COMPANY GRANTING TWO ELECTRIC POWER DISTRIBUTION EASEMENTS ACROSS CITY-OWNED PROPERTY WEST OF 51ST AVENUE ALIGNMENT, SOUTH OF ARROWHEAD LAKES DRIVE TO CONTINUE SERVICE TO THE CITY'S BOOSTER PUMP LOCATED WITHIN THE DEVELOPMENT; AND ORDERING THAT A CERTIFIED COPY OF THIS ORDINANCE BE RECORDED. It was moved by Lieberman, and seconded by Clark, to approve Ordinance No. 2382 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. 7. ARIZONA PUBLIC SERVICE UNDERGROUND POWER EASEMENT AT THE GLENDALE CIVIC CENTER 7 Ms. Kathie Sholly, Property Manager, presented this item. This is a request for the City Council to grant an electric power distribution easement in favor of Arizona Public Service Company (APS) across city-owned property between 57th and 58th drives, north of Glenn Drive. The purpose of this easement is to allow APS to formally continue service to the Glendale Civic Center and adjoining neighborhood. As part of the construction of the Glendale Civic Center, new electrical service was designed and installed by APS. Recently, it came to APS' attention that the formal easement for these facilities was never requested or obtained from the city. This easement is now being requested to formally acknowledge the presence of the existing APS facilities. The recommendation was to waive reading beyond the title and adopt an ordinance authorizing the City Manager to execute an underground electrical power easement in favor of Arizona Public Service Company. Ordinance No. 2383 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 A UTILITY EASEMENT IN FAVOR OF ARIZONA PUBLIC SERVICE COMPANY GRANTING AN ELECTRIC POWER DISTRIBUTION EASEMENT ACROSS CITY-OWNED PROPERTY BETWEEN 57TH AND 58TH DRIVES, NORTH OF GLENN DRIVE TO CONTINUE SERVICE TO THE GLENDALE CIVIC CENTER AND ADJOINING NEIGHBORHOOD; AND ORDERING THAT A CERTIFIED COPY OF THIS ORDINANCE BE RECORDED. It was moved by Eggleston, and seconded by Goulet, to approve Ordinance No. 2383 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. 8. GLENDALE DROUGHT MANAGEMENT PLAN Mr. Doug Kukino, Environmental Resources Director, presented this item. This is a request for City Council to adopt the Glendale Drought Management Plan and Drought Management Ordinance. As a municipal water provider, Glendale needs to be prepared to effectively manage droughts of different levels and magnitudes. Adoption of the Glendale Drought Management Plan and Drought Management Ordinance will help ensure that the city has in place best management practices to effectively deal with droughts. The city's future and the quality of life for Glendale residents depend upon the provision of adequate water supplies during normal and drought conditions. The 8 ... ... .... . ..... ............. . Glendale Drought Management Plan is designed to affect water use decisions and actions of city government, local area businesses and Glendale residents. Much of the western United States, including Arizona, is experiencing a severe drought. The central Rocky Mountain area is experiencing the worst drought in 300 years. Arizona's Salt and Verde River watershed is in the midst of an eight-year drought that is one of the worst in the past 100 years. The 60 million acre-feet Colorado River reservoir system, from which the city receives its Central Arizona Project (CAP) water, is approximately 54 percent full. While the U.S. Bureau of Reclamation has no immediate plans to cut Colorado River allocations, it has growing concerns about maintaining normal water deliveries during this drought. The 2.3 million acre-feet Salt River Project (SRP) reservoir system, from which the city receives its SRP surface water supply, is about 47 percent of capacity. The drought has caused the SRP to cut its normal allocation to eligible lands from three acre-feet per acre to two acre-feet per acre in 2003 and 2004. Glendale's water demand on lands served with SRP water averages 2.3 acre-feet per acre. Groundwater now comprises 1.3 acre-feet per acre of the two acre-feet per acre delivered by the Salt River Project. Despite the drought, Glendale and other cities in the Phoenix metropolitan area have been able to provide normal water service to customers. Glendale has been able to purchase excess CAP water to make up for the reductions in SRP supplies. The city also increased its groundwater use during the drought. Glendale has been operating according to most of the Drought Management Plan Stage One requirements, for the past two years. It is anticipated that with the adoption of the Drought Management Plan and Drought Management Ordinance, the city will continue operating under a Stage One drought watch for the near future. The Drought Management Plan was presented to Council at the May 4, 2004 workshop session. Council recommendations regarding the Plan and the Ordinance have been incorporated into the documents. The city's drought management plan will ensure that the city has in place best management practices to minimize the negative impacts of droughts. The plan is comprised of four drought stages. Each stage is progressively more serious. A menu of best management practices is identified for each stage. The best management practices are identified to assist the City Manager and Council in determining possible courses of action to minimize the effects of a drought; and may be implemented selectively and/or progressively as determined by the City Manager or Council. The plan sets forth expectations that will guide the water use decisions and behavior of our residents, business and visitors. 9 A public information component is included as a part of the Drought Management Plan. Upon adoption, information relating to the Drought Management Plan and Drought Management Ordinance, will be incorporated into the city's website, and various city publications, such as the Connection, Relay, and neighborhood newsletters. Presentations by city staff are being planned for various publicly attended forums. The variety and number of communication methods is expected to change with time, local and regional conditions, and severity of a drought. In the current drought, the city has been purchasing excess CAP water to replace the reduced SRP allocation. In 2004, excess CAP water cost $106 per acre- foot. Excess CAP water is projected to cost $111 per acre-foot in 2005. The Utilities Fund 50 has paid the cost of purchasing the extra CAP water. Water use restrictions will result in a reduction of total water demand. A significant or prolonged reduction in water demand could negatively impact the city's Utility Fund 50. The Glendale Drought Management Plan proposes a drought surcharge to be implemented starting at Stage Three to compensate for lost water sales and to encourage reductions in water use. The drought surcharge rate will depend mainly upon the severity of the drought, the surface water supplies affected, the water demand reduction volume, and the water rate structure in place at the time a Stage Three Drought Declaration or Stage Four Drought Emergency is declared by the City Council. Adoption of a drought surcharge structure and rate will be a separate Council action, at the time of Council decision to declare a Stage Three Drought Declaration, Stage Four Drought Emergency, or at any time during a Stage Three Drought Declaration, or Stage Four Drought Emergency. In the event that the City Council declares a Stage Three Drought Declaration, water use restrictions may begin to be imposed on businesses and the public. These restrictions will prompt the city to more actively monitor and enforce the restrictions. The Drought Management ordinance establishes an enforcement methodology, and a prohibited water use fine, which may be used in enforcing water use restrictions. The recommendation was to waive reading beyond the title and adopt the Glendale Drought Management Plan and Drought Management Ordinance. Ordinance No, 2384 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 33, ARTICLE II, SEC. 33-83 AND ADDING A NEW DIVISION 6 TO SAID ARTICLE II ENTITLED "DROUGHT MANAGEMENT"; AND PROVIDING PENALTIES FOR VIOLATION THEREOF. It was moved by Martinez, and seconded by Frate, to approve Ordinance No. 2384 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. 10 9. SIGNATURE AUTHORIZATION Mr. Ray Shuey, Finance Controller, presented this item. This is a request for the City Council to approve an ordinance updating the city's signature authority for bank withdrawals or checks. These authorizations need to be periodically updated due to changes in organization structure. It is recommended that the following individuals be authorized signers, effective immediately: Name Position Signature Authorization Ed Beasley City Manager City Manager Pamela Kavanaugh Assistant City Manager City Manager Pam Hanna City Clerk City Clerk Arthur R. Lynch Chief Financial Officer City Treasurer Acting City Tax Collector In addition, the city will have the two signatures as required for all checks of $50,000 or more. The Assistant City Manager's signature is imprinted by machine and the second signature is signed on the check by hand. SUPERINTENDENT SIGNATORIES Name Position Signature Authorization Ken Reedy Deputy City Manager, Acting Superintendent of Streets Public Works Larry Broyles City Engineer Acting Assistant Superintendent of Streets The recommendation was to waive reading beyond the title and adopt the ordinance updating signature authority. Ordinance No. 2385 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 DESIGNATED OFFICERS TO DEPOSIT CITY FUNDS IN DESIGNATED BANK; DIRECTING SAID BANK TO RECOGNIZE THE SIGNATURES OF SAID OFFICERS ON ELECTRONIC FUND TRANSFERS, CHECKS FOR DEPOSIT AND/OR WITHDRAWAL It was moved by Clark, and seconded by Lieberman, to approve Ordinance No. 2385 New Series. Motion carried on a roll call vote, with the following Councilmembers 11 voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, Frate, and Scruggs. Members voting "nay": none. PUBLIC HEARING — RESOLUTION 10. REVIEW AND APPROVAL OF THE FISCAL YEAR 2004-05 PRELIMINARY BUDGET Ms. Sherry Schurhammer, Budget Director, presented this item. This is a request for the City Council to review and approve the FY04-05 preliminary budget and conduct a public hearing. Council approval of the preliminary budget will set the maximum level of expenditures for FY04-05. Adjustments and reallocation of appropriation authority can be made after adoption of the preliminary budget, but the total amount of appropriation cannot be increased. Once Council approves the preliminary FY04-05 budget, a public notice will be published in a newspaper of general circulation for two weeks, with the final FY04-05 budget adoption and public hearing scheduled for June 22. The tax levy adoption is scheduled for June 22, 2004. Review of the preliminary FY04-05 budget is consistent with the Council's goal of ensuring the city's financial stability. A series of Council workshops were conducted in February, March, and April 2004, to review the General Fund revenue projections. The FY04-05 budget is balanced. Council added 23 police officers, six police support staff members, 18 firefighters, and one fire protection engineer to ensure public safety for our community, a strategic priority for Glendale. Council was able to do this by reallocating the $9.5 million in savings achieved when the FY03-04 budget was established. This approach reflects Council's concerted efforts to find creative ways to conserve and redistribute resources. Examples of some of the other positions added to the FY04-05 budget are: two staff persons for the parks and recreation after school and summer programs, two maintenance personnel for the Grand Canal Linear Park, 10 positions for the Utilities Department plant operations and billing services, three staff persons for the loose trash collection program, one landfill weigh scale operator, one structural building inspector, two utility inspectors, one assistant city prosecutor, one orders of protection clerk for the City Court, as well as several contractual positions for building inspections at the Cardinals Stadium site and the West Gate development site. Other additions to the FY04-05 operating budget include: 12 • approximately $81 ,000 in one-time funds to expand the new Adult Center's hours of operation to include evening and weekend hours in FY04-05; • approximately $93,000 in one-time funds to supplement park ranger coverage at the city's parks and open space amenities; • approximately $257,000 in one-time funds—to increase total funding to $1.15 million—for the pavement management program, a long-term maintenance plan to preserve the high quality of our roadway network; and • approximately $500,000 for the Neighborhood Improvement Grants program to provide capital improvements to various neighborhoods throughout the city such as right-of-way landscaping enhancements. FY04-05 revenues are expected to continue to grow, with the most notable increase expected in city sales tax revenues. This source alone is 36% of the city's general fund (GF) revenue budget for FY04-05. This specific revenue source is expected to increase $4 million, or 9%, over the FY03-04 revenue budget for city sales tax revenues. City sales tax receipts alone exceeded the city sales tax revenue budget by $4.8 million through the 3rd quarter of FY03-04. State-shared revenues, which represent 33% of the city's GF revenue budget, are held flat for FY04-05. The reason for this conservative approach is the expected decrease in state-shared revenues in FY05-06 and beyond as a result of the mid- decade census and the resulting recalculation of Glendale's pro rata portion of state- shared revenues. By taking this approach, the city is not building into its operating budget additional ongoing expenses supported by state-shared revenues. Even though the economy has rebounded and the city has seen the positive impact of this renewed vigor, staff continues to be conservative in spending. For example, staff has continued to follow many of the cost-saving measures that were implemented in FY02-03, such as: • No transfers of salary savings to operating budgets except in very limited instances. • No unbudgeted carryover savings – all carryover will be returned to the General Fund. • No vacant or temporary positions will be filled without review by the Position Review Committee and approval by the City Manager's Office. • Capital projects are reviewed for all operating and maintenance costs impacting the General Fund. As a result of proactive economic development practices, several new retail centers and stores have opened early or on-time. These establishments have brought many new job opportunities to residents and have been generating some welcome additional sales tax revenue. 13 > Sam's Club and Super Wal-Mart at 83rd Avenue & Union Hills Drive > Wal-Mart at the Agua Fria Town Center at 95th Avenue & Camelback Road > AJ's at Arrowhead Village at 67th Avenue & Beardsley Road > Kohl's at 57th Avenue and Bell Road ), Super Wal-Mart at Northern Crossings at 59th Avenue & Northern > Arrowhead Ranch Plaza at 59th Avenue & Union Hills Road • Sprouts at 54th Avenue & Bell Road > Big Lots at 67th Avenue & Cactus Road • 99 Cent Store at 54th & Glendale Avenues The Lowe's Home Improvement Store at Northern Crossings is expected to open by mid-December 2004, in time for holiday shoppers. Negotiations are in progress with a wide variety of other quality retailers interested in bringing their businesses to this exciting development. The Glendale Arena and Cardinals Stadium have been selected to host the National Hockey League's All-Star game in 2006, the Fiesta Bowl national collegiate football championship game in 2007 and the National Football League's Super Bowl in 2008. While the attraction of these world-class events will bring unprecedented media coverage, the costs associated with providing public safety services, as well as other city services, can be significant. To prepare the city for this situation, Council has set aside $1 million of the General Fund balance for the 2008 Super Bowl. Staff also will undertake a study of the potential costs associated with hosting such world class events so the city can be thoroughly prepared to provide the essential city services and cover the costs to be incurred in providing them. Staff is confident that the Mayor and Council's vision will ensure an enhanced quality of community life in Glendale and secure our position as a world-class destination city in the near future. The 5th budget workshop with Council occurred on April 20, 2004. Council reviewed the final balancing information regarding the FY04-05 base budget and supplemental requests, as well as the Preliminary FY05-14 Capital Improvement Plan (CIP) with the recommended changes that were presented at the March 23, 2004 budget workshop. The 4th budget workshop with Council occurred on April 6, 2004. This workshop covered the revised GF balancing summary for ongoing and one-time revenues and expenditures, as well as the following departments: Community Development Administration, Building Safety, Engineering, Planning, Transportation, Public Works Administration, Field Operations, Utilities, Environmental Resources, Community Services Administration, Library, Parks & Recreation, Community Housing & Revitalization, and the Civic Center. 14 The 3rd budget workshop with Council occurred on March 30, 2004. This workshop covered the following projects and departments: Arena, Stadium, Westgate, Super Bowl, Administration, Code Compliance, Finance, Information Technology, Management & Budget, City Manager's Office, Marketing and Communication, Economic Development, City Auditor, and Intergovernmental Programs. The 2nd budget workshop with Council occurred on March 23, 2004. This workshop covered the FY 2004-05 Pay As You Go (PAYGO) capital projects for the General Fund (GF), the Capital Improvement Program (CIP) operating and maintenance supplementals, the FY 2005-14 preliminary CIP, and the FY 2004 preliminary carryover requests. The 1st budget workshop with Council occurred on March 16, 2004. This workshop covered the GF budget balancing summary and the following departments: Human Resources, Fire, Police, City Court, City Attorney, City Clerk, City Council Office, and the Mayor's Office. The FY04-05 budget workbook was distributed to Council on March 2, 2004 for review prior to the scheduled budget workshop discussions. Council reviewed the FY04-05 GF revenue projection at the February 17, 2004 workshop. Council was presented with an overview of the draft FY05-14 CIP at the January 6, 2004 workshop. As a follow up to the January 6 workshop, a detailed report on the draft FY05-14 CIP was provided to Council on January 23, 2004. The City of Glendale's budget is an important financial, planning, and public communication tool. It gives residents and businesses a clear and concrete view of the city's direction for public services and operations and a better understanding of the city's ongoing needs for stable revenue sources to fund public services and ongoing operations. The budget provides Council and residents with a means to evaluate the city's financial stability. All budget workshops were open to the public and were posted publicly per state requirements. The annual budget (all funds) for the City of Glendale is divided into four major components, which include all appropriations for the city. The four components and their respective total amounts for FY04-05 are as follows: • The operating budget finances the day-to-day provision of city services and totals $268 million (all funds). 15 • The capital improvement budget funds the construction of city facilities, such as roads and buildings like libraries. This year the capital improvement budget totals $287 million (all funds), which includes the construction of a new fire station at 63rd Avenue and Bell Road. • The debt service budget is used to repay money borrowed by the city, primarily for capital improvements, and amounts to $47 million (all funds). • The final component of the budget is the contingency appropriation, which is made up of fund reserves and is available to cover emergency expenses or revenue shortages. The contingency appropriation for this fiscal year totals $51 million (all funds). The total budget, including all four components, is $653 million (all funds). The recommendation was to conduct a public hearing, waive reading beyond the title, and adopt a resolution accepting the preliminary FY04-05 budget. Resolution No. 3762 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 2004-2005; 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. Mayor Scruggs opened the public hearing on Agenda Item No. 10. As there were no comments, Mayor Scruggs closed the public hearing. It was moved by Frate, and seconded by Clark, to pass, adopt and approve Resolution No. 3762 New Series. The motion carried unanimously. RESOLUTIONS 11. AUTHORIZATION FOR LEASE FINANCING Mr. Ray Shuey, Finance Controller, presented this item. This is a request for the City Council to adopt a resolution relating to the lease financing of various city equipment. The resolution authorizes the execution and delivery of the lease, approves the terms of the lease and awards the lease to the best proposal from a reasonable bidder. The lease proceeds will fund various projects included in the City's Capital Improvement Plan. 16 It is the city's practice to finance the acquisition of certain assets with the use of lease financing. Lease financing does not impact the city's general obligation debt limits. it is currently anticipated that lease proposals will be received on May 27, 2004. Once the proposals are received, staff and the city's financial advisor, Johnson Consulting Group, who will evaluate and verify the bids received to assure their accuracy and benefit to the city. These bids will then be presented to the Council for their review. The Council can accept the lowest, most responsive bid by adopting the lease resolution. The Council recently approved the City's Capital Improvement Plan, which anticipates the use of lease financing to fund a portion of the CIP projects. The lease will be paid from departmental and/or general fund revenues. The recommendation was to waive reading beyond title and adopt a resolution authorizing the issuance of lease financing in an amount not to exceed $1,000,000, and declaring an emergency. Resolution No. 3763 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 A LEASE AGREEMENT IN AN AMOUNT NOT TO EXCEED $1,000,000 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 LEASE; 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. It was moved by Eggleston, and seconded by Martinez, to pass, adopt and approve Resolution No. 3763 New Series. The motion carried unanimously. 12. AUTHORIZATION TO SELL GENERAL OBLIGATION BONDS Mr. Ray Shuey, Finance Controller, presented this item. This is a request for the City Council to adopt a resolution ordering the sale by competitive bid of general obligation bonds. The resolution authorizes the publication of a notice of the city's intent to sell general obligation bonds in The Glendale Star. The bond proceeds will fund various projects included in the city's Capital Improvement Plan (CIP). 17 In November 1999, the voters of Glendale authorized the issuance of $411 million in bonds for various capital improvements in the city including flood control projects, economic development, transit, public works facilities, landfill, water and sewer, parks and street improvements. Contingent upon Council's approval, staff will proceed with the publication of the resolution authorizing the sale of the bonds. Staff will also prepare and publish an "Official Statement" for the bonds. The statement will be sent out to potential underwriting firms who are interested in buying the city's bonds. In addition, staff will present the rating agencies with information about the financial strengths of the city. Staff will work in conjunction with its financial advisor and bond counsel to monitor the changes in the marketplace and the legal disclosure issues that may arise. It is currently anticipated that underwriting bids will be received on June 22, 2004. Once the proposals are received from the underwriting firms, staff and the City's Financial Advisor will evaluate and verify the bids received to assure their accuracy and benefit to the city. These bids will then be brought to the Council for their review. The Council can accept the lowest, most responsive bid by adopting the bond ordinance, which is currently scheduled for consideration at the June 22, 2004 meeting. In 1999 Glendale citizens approved the issuance of bonds to fund a variety of city projects. The Council recently reviewed the city's Capital Improvement Plan, which anticipates the issuance of general obligation bonds to fund a portion of the CIP projects. Budgeted CIP projects that will be funded by this transaction include the new Field Operations Complex, City Court renovations, the Foothills Recreation and Aquatics Center, Rose Lane Pool construction, the Western Area Regional Park, West Area Pool, as well as park redevelopment, storm drainage and various road improvements projects. The bonds were approved by city voters in 1999. The projects to be funded were approved as part of the budget/capital improvement plan implementation process. This bond sale will fund projects approved by voters in 1999. The bonds will be secured by the full faith and credit of the City of Glendale and are payable from property taxes levied on all taxable property within the city. The bonds will be paid from the city's secondary property tax rate. The Finance Department has evaluated a variety of bond structures. It is currently anticipated that the city's total property tax will not increase as a result of the issuance of the proposed general obligation bonds. 18 The recommendation was to waive reading beyond the title and adopt a resolution ordering the sale by competitive bid of not to exceed $38,000,000 of general obligation bonds, and declaring an emergency. Resolution No. 3764 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, ORDERING THE SALE OF NOT TO EXCEED $38,000,000 PRINCIPAL AMOUNT OF CITY OF GLENDALE, ARIZONA GENERAL OBLIGATION BONDS, SERIES JUNE 1, 2004; AUTHORIZING CERTAIN OTHER DOCUMENTS AND THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ORDER OF SALE; AND DECLARING AN EMERGENCY. It was moved by Clark, and seconded by Lieberman, to pass, adopt and approve Resolution No. 3764 New Series. The motion carried unanimously. 13. AUTHORIZATION TO SELL STREET AND HIGHWAY USER REVENUE BONDS Mr. Ray Shuey, Finance Controller, presented this item. This is a request for City Council to adopt a resolution ordering the sale by competitive bid of street and highway user revenue bonds. The resolution authorizes the publication of a notice of the city's intent to sell the bonds in The Glendale Star. The bond proceeds will fund various projects included in the City's Capital Improvement Plan (CIP). Glendale voters, in a 1987 bond election, approved the issuance of the bonds. In addition, pending favorable interest rates, the bonds will include a refunding component to refinance outstanding Street and Highway User Revenue bonds for interest savings. In 1987, the voters of Glendale authorized the issuance of $57.77 million in street and highway user revenue bonds for various street and highway capital improvements. The bonds will be secured and paid by street and highway user revenues. Contingent upon Council's approval, staff will proceed with the publication of the resolution authorizing the sale of the bonds. Staff will also prepare and publish an "Official Statement" for the bonds. The statement will be sent out to potential underwriting firms who are interested in buying the city's bonds. In addition, staff will present the rating agencies with information about the financial strengths of the city. Staff will work in conjunction with its financial advisor and bond counsel to monitor the changes in the marketplace and the legal disclosure issues that may arise. It is currently anticipated that underwriting bids will be received on June 22, 2004. Once the proposals are received from the underwriting firms, staff and the city's Financial Advisor will evaluate and verify the bids received to assure their accuracy and 19 benefit to the city. These bids will then be brought to the Council for their review. The Council can accept the lowest, most responsive bid by adopting the bond ordinance, which is currently scheduled for consideration at the June 22, 2004 meeting. In 1987, Glendale citizens approved the issuance of bonds to fund a variety of city projects. The Council recently approved the city's Capital Improvement Plan, which anticipates the issuance of street and highway user revenue bonds to fund a portion of the CIP projects. In 1994 and 1996, the city issued Street and Highway User bonds. These bonds were sold with a "call" provision, which allows them to be refunded at the city's option. Because of favorable interest rates, the city plans to exercise this call provision at this time. Budgeted CIP projects that will be funded by this transaction include improvements on Bethany Home from 75th to 83rd Avenues, Bethany Home from 83rd to 99th Avenues, 67th Avenue from Camelback to Grand, sound walls in Loop 101 between 75th and 51st Avenues, widening 91st Avenue from Camelback to Northern as well as signal computerization and other various road improvements. The refunding component is expected to save the city approximately $100,000, which can be used for additional street and highway projects. City voters at a 1987 bond election approved the bonds. The projects to be funded were approved as part of the budget/capital improvement plan implementation process. The bonds will be paid from the city's share of certain highway user revenues collected by the State of Arizona and returned to the city. The city received approximately $14,183,000 in Highway User Tax Revenues in fiscal year 2003. The recommendation was to waive reading beyond the title and adopt a resolution ordering the sale by competitive bid of not to exceed $17,000,000 of street and highway user revenue bonds, and declaring an emergency. Resolution No. 3765 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, ORDERING THE SALE OF NOT TO EXCEED $17,000,000 PRINCIPAL AMOUNT OF CITY OF GLENDALE, ARIZONA STREET AND HIGHWAY USER REVENUE BONDS, SERIES JUNE 1, 2004; AUTHORIZING CERTAIN OTHER DOCUMENTS AND THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ORDER OF SALE; AND DECLARING AN EMERGENCY. It was moved by Goulet, and seconded by Frate, to pass, adopt and approve Resolution No. 3765 New Series. The motion carried unanimously. 14. CANVASS OF VOTE RESOLUTION MAY 18, 2004 GENERAL ELECTION 20 Mr. Jon Paladini, Interim City Attorney, presented this item. This is a request for the City Council to adopt a resolution adopting the canvass of vote for the May 18, 2004 General Election. It is required by A.R.S.16-642 that "the governing body holding an election shall canvass the election not less than six days nor more than 15 days following the election." The March 18, 2004 General Election has ballot questions on: Proposition 101, 102, 103, 104 and 105. In addition, the Cactus District Council position is on the ballot. The May 18, 2004 General Election was called by the City Council on July 22, 2003 and noticed on April 13, 2004. The recommendation was to adopt the Canvass of Vote Resolution for the May 18, 2004 General Election. Resolution No. 3766 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, DECLARING AND ADOPTING THE RESULTS OF THE GENERAL ELECTION HELD ON MAY 18, 2004; AND ORDERING THAT A CERTIFIED COPY OF THIS RESOLUTION BE RECORDED. It was moved by Frate, and seconded by Goulet, to pass, adopt and approve Resolution No. 3766 New Series. The motion carried unanimously. REQUEST FOR FUTURE WORKSHOP AND EXECUTIVE SESSION It was moved by Eggleston, and seconded by Martinez, to hold a City Council Workshop at 1:30 p.m. in Room B-3 of the City Council Chambers on Tuesday, June 15, 2004, to be followed by an Executive Session pursuant to A.R.S. 38-431.03. The motion carried unanimously. CITIZEN COMMENTS COUNCIL COMMENTS AND SUGGESTIONS ADJOURNMENT There being no further business, the meeting was adjourned at 8:20 p.m. c;:-:?")"* Pamela Hanna - City Clerk 21