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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 6/22/2004 MINUTES OF THE REGULAR MEETING OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, HELD TUESDAY, JUNE 22, 2004, AT 7:00 P.M. The meeting was called to order by Vice Mayor Thomas R. Eggleston, with the following Councilmembers present: Joyce V. Clark, Steven E. Frate, David M. Goulet, H. Philip Lieberman, and Manuel D. Martinez. Mayor Scruggs was absent. Also present were Ed Beasley, City Manager; Pam Kavanaugh, Assistant City Manager; Jon Paladini, Interim City Attorney; and Rosemary Ramirez, Deputy City Clerk. COMPLIANCE WITH ARTICLE VII, SECTION 6(c) OF THE GLENDALE CHARTER A statement was filed by the City Clerk that the seven 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. APPROVAL OF THE MINUTES OF THE MAY 25, 2004, JUNE 1, 2004, AND JUNE 8, 2004 CITY COUNCIL MEETINGS It was moved by Goulet, and seconded by Frate, to dispense with the reading of the minutes of the May 25, 2004, June 1, 2004, and June 8, 2004 City Council meetings, as each member of the Council had been provided copies in advance, and approve them as written. The motion carried unanimously. PROCLAMATIONS AND AWARDS BOARDS AND COMMISSIONS This is a request for the City Council to approve the recommended appointments to the following commissions that have a vacancy or expired term and for the Mayor to administer the oath of office to those appointees in attendance. Effective Term Date Expires Arts Commission Burr, Sandra Chair Appointment 06/22/2004 08/22/2005 Koory, Jessica Vice-Chair Appointment 06/22/2004 08/22/2005 1 Wixon, Sharon Cactus Re-appointment 06/22/2004 08/22/2006 Effective Term Date Expires Edwards, Patricia Sahuaro Appointment 06/22/2004 08/22/2006 Bicycle Advisory Commission Wood, Michael Chair Appointment 06/22/2004 07/16/2005 Board of Adjustment Beck, Tommie L. Mayoral Re-appointment 06/22/2004 06/29/2006 Citizens Advisory Commission on Neighborhoods Nave, Mike At-Large Appointment 06/22/2004 06/29/2006 Community Development Advisory Committee Garland, Barbara Yucca Appointment 06/22/2004 06/30/2006 Koehler, Robert F. Sahuaro Re-appointment 06/22/2004 06/28/2006 Industrial Development Authority Whitehurst, Darren L. At-Large Re-appointment 06/22/2004 08/22/2010 Risk Management/Worker's Compensation Trust Fund Board Williams, Gerald A. At-Large Appointment 06/22/2004 07/23/2007 The recommendation was to make appointments to the commissions and administer the oath of office. It was moved by Martinez, and seconded by Lieberman, to appoint the applicants listed above, for the terms listed above, to the Arts Commission, the Bicycle Advisory Commission, the Board of Adjustment, the Citizens Advisory Commission on Neighborhoods, the Community Development Advisory Commission, the Industrial Development Authority, and the Risk Management/Worker's Compensation Trust Fund Board. The motion carried unanimously. 2 Vice Mayor Eggleston called Mr. Michael Wood, Bicycle Advisory Commission; Mr. Tommie L. Beck, Board of Adjustment and Mr. Mike Nave, Citizens Advisory Commission on Neighborhoods, forward and issued the oath of office. CONSENT AGENDA Mr. Ed Beasley, City Manager, read Agenda Item Numbers 1 through 9. Councilmember Lieberman requested item no. 9 be heard separately. 1. LIQUOR LICENSE NO. 3-938 DESERT MIRAGE GOLF COURSE This is a request by Anthony Rizzo for the City Council to approve a person transfer of a Series 7 (on & off-sale retail, beer and wine) license for Desert Mirage Golf Course, located at 8710 W. Maryland Avenue. The previous owner operated this business as the Desert Mirage Golf Course and held a Series 7 license. 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. 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. No protests were received during the 20-day posting period. The recommendation was to forward a recommendation for approval to the Arizona Department of Liquor Licenses and Control. 2. LIQUOR LICENSE NO. 3-939 SKIPPER'S LOUNGE This is a request by Gloria Gordun-Verderosa for the City Council to approve a person transfer of a Series 6 (on & off-sale retail, all liquor) license for Skipper's Lounge located at 6124 N. 43rd Avenue. The previous owner operated this business as Skipper's Lounge and held a Series 6 license. 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. 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. No protests were received during the 20-day posting period. 3 The recommendation was to forward a recommendation for approval to the Arizona Department of Liquor Licenses and Control. 3. LIQUOR LICENSE NO. 3-940 MARYVALE MARKET & DELI This is a request by Ashok Patel for the City Council to approve a new Series 10 (off-sale retail, beer and wine) license for Maryvale Market & Deli located at 5510 W. Camelback Road. The previous owner operated this business as Country Market Grocers and held a Series 10 license. 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. 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. No protests were received during the 20-day posting period. The recommendation was to forward a recommendation for approval to the Arizona Department of Liquor Licenses and Control. 4. LIQUOR LICENSE NO. 3-944 SOMER MARKET This is a request by Randy Battou for the City Council to approve a new Series 10 (off-sale retail, beer & wine) license for Somer Market located at 4935 W. Glendale Avenue, Suite 9. The previous owner operated this business as Somer Liquor and held a Series 9 license. 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. 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. No protests were received during the 20-day posting period. The recommendation was to forward a recommendation for approval to the Arizona Department of Liquor Licenses and Control. 5. CONTRACT AWARD: GLENDALE GLITTERS HOLIDAY LIGHTING This is a request for the City Council to award a contract, in the amount of $132,835, with an option to renew for four additional years, to The Christmas Light Decorators, for the design, purchase of new and replacement lights, installation, 4 maintenance, and removal and storage of holiday lighting for the annual Glendale Glitters light display. This action meets the Council goals of enhancing the quality of life for Glendale residents, promoting economic development and projecting a positive image of Glendale. This is a continuing project with several areas in Historic Downtown Glendale to be decorated, including Murphy Park, the Glendale Civic Center and trees, Glendale Avenue street trees, the Bank of America building palm trees, the Bead Museum, Catlin Court street trees and 57th Drive street trees. Bids were received and opened for Solicitation Number 04-21 RFP at 2:00 p.m. on May 25, 2004. The Christmas Light Decorators submitted the lowest bid in the amount of $132,835. Glendale Glitters has been a ten-year holiday tradition, with the lighting display paid for with budgeted funds since 1994. The Glendale Glitters Holiday Light Display annually attracts an estimated 250,000 visitors to Historic Downtown Glendale. It provides the base for the city's year- round festival program. Glendale Glitters is recognized as Arizona's Best Hometown Holiday Tradition and provides a great sense of pride for Glendale citizens. Budget Impacts & Costs: Grants Capital One-Time Budgete Unbudgete Total Expense Cost $132,835 $132,835 Account Name, Fund, Account and Line Item Number: City-wide Special Events, 01-4244-7330, program code 82001 The recommendation was to award the Glendale Glitters Holiday Lighting contract to The Christmas Light Decorators in the amount of $132,835. 6. AWARD OF PROPOSAL 03-33, LIBRARY AUTOMATION SYSTEM This is a request for the City Council to approve the purchase of a new library automation system. Award of this contract meets the City Council goals of leveraging technology for efficiency and convenience and enhancing the quality of life for Glendale residents. The current integrated system utilizes old technology that prevents the library from offering enhanced services to the citizen's of Glendale. 5 The library's automation system is vital to the operation of all of the library's services. The system integrates the catalog of holdings, purchase of materials, and circulation of items. Glendale Public Library purchased the Dynix Classic library automation system in 1993. Since that time, there have been many changes and enhancements to such systems. The library's existing system is unable to take advantage of newer technological capabilities designed to deliver more efficient services to users. In May 2002, library staff conducted a market study to research options for replacement of the current system with specifications that meet the Information Technology Department standards. In July 2003, Diane Mayo, a nationally recognized library automation consultant, was hired to guide the library through the process of developing detailed system requirements and evaluation criteria for a request for proposal that was issued in October 2003. Five responses to the request for proposal were received and evaluated by a team of library staff members. GIS Information Systems, Inc. and Dynix Corporation were the vendors that met the written minimal functional specifications. The evaluation criteria were functionality, cost, configuration, experience, and business factors. In January 2004, these two vendors were invited to demonstrate software capabilities to library staff. After completion of the demonstrations, Dynix's new Horizon System was selected as the product that could best meet the current and new requirements. In 2002, library staff conducted a market study to assess the value of replacing its older platform of hardware and software with a solution that can support enhanced features now available in newer library automation systems. At this time, the Library Advisory Board was given an overview of the planning process needed to replace the outdated hardware and software utilized by the library's current Dynix Classic automation system. The board was updated frequently during the selection process for the new system. Utilizing up-to-date software technologies and newer hardware will raise the level of library services provided to library patrons and facilitate an increase in staff productivity. Library patrons will have enhanced access to books, magazines, DVD's and videos, as well as numerous electronic resources from their home or office. The initial purchase of the system will cost $241,486, and it includes a one-year warranty. Upon expiration of the warranty, the ongoing annual maintenance cost will be $57,130. This maintenance cost will increase no more than three percent per year. Funds for this Library Automation System are available in the Fiscal Year 2003- 04 Capital Improvement Program and Fiscal Year 2003-04 Technology Replacement. To facilitate payment, funds in the amount of $193,316 need to be transferred from Foothills Branch Library, Account No. 64-8555-8320 into Library Automation System, Account No. 64-9655-8400. 6 Grants Capital One-Time Budgete Unbudgete Total Expense Cost X $241 ,486 Account Name, Fund, Account and Line Item Number: Library Automation System Account No. 64-9655-8400 $193,316 Technology Replacement Account No. 42-2335-8400 $48,170 The recommendation was to award the contract for the purchase of an integrated library automation system for the Glendale Public Library with Dynix Corporation in the amount of $241,486, with ongoing maintenance renewals beginning upon expiration of the one-year free warranty in the amount of $57,130. This maintenance agreement will extend for four years and will not increase more than three percent annually. 7. GENERAL FUND CONTINGENCY TRANSFER REQUEST TO PURCHASE FIRE PUMPER TRUCK FOR STATION 159 This is a request for the City Council to transfer $484,553 in Fiscal Year 04-05 contingency appropriation authority and funds to cover the purchase of a fire pumper truck and associated hose and equipment for the new fire station to be constructed at 63rd Avenue and Bell Road. The Council goal of ensuring public safety and awareness will be addressed through the construction of a new fire station at 63rd Avenue and Bell Road and by providing the new station with a fire pumper truck to meet community needs. Council directed staff to proceed immediately with the construction of a new fire station at 63rd Avenue and Bell Road at the March 23, 2004, budget workshop. The Council stated that it would like the new fire station to open as soon as possible after construction is completed. The fire pumper truck required for the new fire station requires a 365-day lead-time for manufacture and delivery. Therefore, the City of Glendale must order the fire pumper truck as soon as possible to ensure delivery of the vehicle by the time the station is ready to open. E-One will provide the fire pumper truck. The truck to be purchased is a mid- engine 1500 GPM pumper truck capable of providing fire protection and EMS service to the Bell Road corridor. Council directed staff to proceed immediately with the construction of a new fire station at 63rd Avenue and Bell Road at the March 23, 2004, budget workshop. Council approved award of a contract, RFP 02-35, on November 12, 2002, to Saulsbury Fire Rescue (currently E-One). The contract had a provision that the Offeror also agrees that at any time within two years of City Council approval of the original 7 contract, the City may purchase additional quantities at mutually agreed upon prices for equipment conforming to proposal requirements. The pricing for the additional equipment, as well as the truck, is consistent with the original purchase price, including the industry standard price increases for the cost increase for steel. The estimated cost of the fire pumper truck is $484,553, including tax. Since this item was not included in the capital improvement project budget for the new fire station, it is necessary to transfer General Fund contingency appropriation authority and funds. Grants Capital One-Time Budgete Unbudgete Total Expense Cost $484,553 $484,553 Account Name, Fund, Account and Line Item Number: 01-8210-8400, Fire Pumper Truck for Station 159 The recommendation was to authorize the transfer of a total of $484,553 in Fiscal Year 2004-05 contingency appropriation authority and funds from GF Contingency account number 01-2450-7000 to Fire Pumper Truck for Station 159 account number 01-8210-8400. 8. SETTLEMENT AGREEMENT WITH DEBORAH CRUZE This is a request for the City Council to authorize the City Manager to enter into a settlement agreement with Deborah Cruze and to transfer $300,000 in Fiscal Year 2003-04 general fund contingency appropriation to the general fund non-departmental insurance claim. The approval of the agreement would result in the complete dismissal with prejudice of the lawsuit between Deborah Cruze and the City of Glendale. Deborah Cruze, a former Assistant City Judge ("Cruze") sued the City of Glendale under the Americans with Disability Act in June of 1999. Cruze alleged that the City had failed to accommodate her disability and that she was, therefore, forced to resign her judgeship. Initially, she claimed $5,000,000 in damages. The City denied all of Cruze's allegations. After several years of intensive litigation, including an appeal to the 9th Circuit Court of Appeals, this matter was tried in Federal District Court in August of 2003. Cruze was ultimately awarded approximately $390,000 in damages, attorneys' fees and court costs, inclusive of interest that continues to accrue. This jury verdict is currently subject to appeal by both parties. Recognizing, however, that an appeal would result in further protracted and expensive litigation, the City was able to negotiate a settlement with Cruze that would terminate the litigation in its entirety in return for a one-time payment of $300,000. Although the City maintains that no violation of law occurred with respect to Ms. Cruze and will admit no liability in the settlement agreement, in light of inherent difficulty 8 of overturning a jury verdict on appeal and the certainty of incurring significant legal fees, the City staff recommends that the Council approve this settlement. The cost of the Cruze settlement is $300,000. This settlement cost cannot be covered by the risk management fund because the action and lawsuit occurred prior to the employment insurance coverage under our general liability insurance. Therefore, it is necessary to transfer General Fund contingency appropriation authority and funds. Grants Capital One-Time Budgete Unbudgete Total Expense Cost $300,000 X $300,000 Account Name, Fund, Account and Line Item Number: General Fund non-departmental insurance claim, 01-2440-7312 The recommendation was to authorize the City Manager to enter into a settlement agreement with Deborah Cruze and authorize the transfer of a total of $300,000 in Fiscal Year 2004-05 contingency appropriation authority and funds from account number 01-2450-7000, General Fund Contingency, to 01-2440-7312, General Fund non-departmental insurance claim. Vice Mayor Eggleston opened the public hearing on Consent Agenda Items 1 through 8. Mr. Leonard Clark, a resident of the City of Glendale Barrel District, commended the City for purchasing another fire pumper truck. Vice Mayor Eggleston closed the public hearing. It was moved by Clark and seconded by Martinez, to approve the recommended actions on Consent Agenda Item Nos. 1 through 8 and to forward Liquor License Applications No. 3-938 for Desert Mirage Golf Course, No. 3-939 for Skipper's Lounge, No. 3-940 for Maryvale Market & Deli, and No. 3-944 for Somer Market, to the State of Arizona Department of Liquor Licenses and Control, with the recommendation for approval. The motion carried unanimously. 9. FINAL PLAT APPLICATION FP03-10: TARRINGTON PLACE — 6301 WEST ALICE AVENUE Mr. James May, Planning Manager, presented this item. This is a request by HGJ Investments Limited Partnership for City Council approval of the final plat for Tarrington Place. 9 The proposed final plat is consistent with the General Plan and the existing R1-4 PRD (Single Residence, Planned Residential Development) zoning district. The proposed subdivision creates additional residential housing opportunities for the city. This development incorporates sound growth management techniques by utilizing the surrounding infrastructure. The site is located on the southwest corner of Alice and 63rd Avenues. The 31.48 acre parcel is being subdivided into 192 lots. Lot sizes vary from 3,440 square feet to 7,454 square feet, with an average lot size of 3,662 square feet. The final plat meets the requirements of the Subdivision and Minor Land Division Ordinance. On November 25, 2003, the Council approved the R1-4 PRD zoning for this site. This project provides housing variety, opportunity and a range in housing unit diversity in the city. The recommendation was to approve Final Plat Application FP03-10. Councilmember Lieberman asked if two homes share a single driveway. He expressed concern about the number of homes located in the area and asked if the School District has given their approval. Mr. May responded yes. He said the lots range in size from 3,500 square feet to 6,000 square feet. He said some of the lots share driveways, while others have garages in the rear. He was unable to estimate the average home size. Mr. May confirmed for Councilmember Martinez that the development is an infill project. Councilmember Martinez asked what would be the average price of the homes. Mr. May referred his question to the applicant. Councilmember Clark asked what is the density of the project. Mr. Froke, Planning Director, stated approximately six dwelling units per acre. Councilmember Clark asked which design guidelines were and were not met. Mr. Froke answered, explaining Mr. May was not with the city when the preliminary plat was approved by Council. He assured Councilmember Clark that the preliminary plat went through a thorough review. Councilmember Clark pointed out the property has a General Plan designation of 5-8 and is zoned R-4. She asked if the R-4 zoning would imply a maximum density of 4 dwelling units per acre. Mr. Froke explained the 4 in R-4 relates to the minimum lot size, not the density. Councilmember Clark pointed out only one lot is above 7,000 square feet, only one lot is above 6,000 square feet, only one lot is over 5,000 square feet and four lots are over 4,000 square feet. She said the statement that lot sizes range between 3,440 and 7,454 square feet, although accurate, is disingenuous. Mr. Froke noted Council's previous action down-zoned the property from R-2 to R1-4 Vice Mayor Eggleston asked what is the minimum lot size. Mr. Froke answered 4,000 square feet. 10 Councilmember Lieberman pointed out the average lot size is 3,662 square feet given a medium-high density of five to eight dwelling units per acre. He asked if the developer was given a break on the impact fee. Mr. Froke responded no, explaining the property is not located within a waiver area. He pointed out significant offsite improvements will enhance both pedestrian safety and vehicular movements in the area. He confirmed for Councilmember Lieberman that the 15.1 percent open space complies with the requirements for this type of development. Councilmember Goulet commented on the success of other similarly sized developments. He asked about the five acre park. Mr. Froke said, in conjunction with the project, the city will construct a five acre park at 63rd Avenue and Butler Councilmember Goulet pointed out landscaping improvements will be made on all four sides of the property. Councilmember Frate asked how many units could have been developed under the previous R-2 zoning. Mr. Froke stated the previous R-2 zoning would have allowed 8 to 12 units per acre which is approximately two to three times the density of the proposed project. Councilmember Lieberman asked if the five acre park would be developed by the developer or the city. Mr. Smith explained the Parks Department is working with KB Homes to acquire the property. He said appraisals have been done and funding for both acquisition and development of the site is available in the current CIP. He stated they would work out a development agreement with KB Homes wherein they will purchase a portion of the land for retention. Councilmember Clark asked if five acres is sufficient. Mr. Paladini advised the park site issue should be agendized separately before further discussion of the details of that site takes place. Vice Mayor Eggleston opened the public hearing on Agenda Item No. 9. Mr. Ron Prothero, a resident of the City of Glendale Ocotillo District, stated he opposes the project because of the number of units and the size of the lots. He said the project only offers the minimum necessary and does not represent a good housing project. Ms. Marla Caulk, Vice President of Development, Glencroft, voiced their support of the project. She noted several of their residents attended the neighborhood meetings and public hearings. As there were no additional comments, Vice Mayor Eggleston closed the public hearing. Councilmember Martinez asked the applicant about the price range of the homes. Mr. Frank Puma, Applicant's representative, said the base price would range 11 from the low-160's to the mid-180's. Councilmember Martinez asked if another project was previously proposed for the site. Mr. Froke responded no. He confirmed for Councilmember Martinez that the property meets all residential guidelines, qualifies as an infill project, and represents a down zoning from what the previous zoning would have allowed. It was moved by Martinez, and seconded by Frate, to approve Final Plat Application FP03-10. The motion carried by a vote of 5 to 1, with the following Councilmembers voting "aye": Clark, Eggleston, Frate, Goulet and Martinez. Councilmembers voting "nay": Lieberman. CONSENT RESOLUTIONS Ms. Rosemary Ramirez, Deputy City Clerk, read consent resolutions items 10 through 13 by number and title. Councilmember Lieberman asked that Item 13 be pulled from the Consent Agenda. 10. RESIDENTIAL DESIGN AND DEVELOPMENT MANUAL This is a request for the City Council to adopt a resolution approving the Residential Design and Development Manual. The Residential Design and Development Manual will provide a document for the Council, the Planning Commission, homebuilders, staff, and the development community to use during the rezoning, platting, and design review process. The document will guide quality development and ensure diverse neighborhoods are established throughout the city. The document updates and combines the existing 1999 Single-Family Residential Design and Development Guidelines and the 1996 Multiple-Residence Housing Design Guidelines. Modifications from the existing documents include: Definitions, Small Lot Development, House Product Design, Architectural Design Review, and Amenities/Open Space. The Residential Design and Development Manual is comprised of eight sections: • Part 1:Small Lot Development Lot sizes less than 7,000 S.F. • Part 2:Medium Lot Development Lot sizes between 7,000 to 12,000 S.F. • Part 3:Large Lot Development Lot sizes over 12,000 S.F. • Part 4:Amenities • Part 5:House Product Design • Part 6:Architectural Design Review • Part 7:Multi-Family Development • Part 8:Appendix 12 The manual encourages a greater variety of lot sizes to include small lots, detached sidewalks, shorter block lengths, open space, varied setbacks, improved recreational amenities, and more variety in architectural style and building materials for house products. The manual clarifies the minimum expectations for all new subdivisions regardless of standard subdivisions, Planned Residential Developments, or Planned Area Development. The manual would allow for smaller infill developments in the downtown area and allow larger lots greater than 12,000 square feet to be eligible for alternate development standards. The Council received a preliminary draft of the manual in June of 2003. Staff discussed the draft manual at six Planning Commission workshops on May 8, June 12, July 10, August 14, September 11 , and September 24, 2003. There were two formal Planning Commission meetings held on August 21 and November 6, 2003. At its November 6, 2003 public hearing, the Planning Commission recommended approval of the draft manual to the Council. The Planning Commission's recommended draft was presented and discussed at City Council workshops held on November 18, 2003, February 17, and April 6, 2004. The Single—Family, Open Space and Amenities, House Products, and Architectural Design Review components of the document were presented and discussed at the February 17, 2004 City Council Workshop. The Multi-Family component was presented and discussed at the April 6, 2004 Council workshop. Staff has incorporated the Planning Commission's recommendation and Council comments into a final draft dated June 22, 2004. With the continued growth of the city and eventual buildout, there is a need to ensure greater quality in residential development citywide, and allow for creative design and diversity in the city's housing stock. The Residential Design and Development Manual will provide guidance for diverse residential development. Since last year, the Planning Department has been advising developers and homebuilders of the proposed manual during pre-application and post-application review meetings. The Planning Department held three meetings with the Home Builders Association of Central Arizona to discuss the updated draft and provided their representative with a copy of the draft document. Recommended changes from the Homebuilders Association have been included in the manual. 13 The Planning Department has also met with the Arizona Multi-Housing Association to discuss the multi-family section of the manual. The Arizona Multi- Housing Association comments were incorporated into the manual. Other interested parties notified of the proposed draft and the changes made to the 1999 Single Family Residential Design Guidelines and the 1996 Multiple Residence Housing Design Guidelines include: Fulton Homes; Earl, Curley and Lagarde; Beus Gilbert PLLC, and Gilstrap and Associates. The draft manual has been placed on the city's website and is available at the Development Services Center. The manual will be used as part of the standard city review process. With the exception of reproduction of the final document, no additional resources will be required once they are adopted. The recommendation was to waive reading beyond the title and adopt a resolution approving the Residential Design and Development Manual. Councilmember Martinez commented on the work that went into the Residential Design and Development Expectations. Resolution No. 3767 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 RESIDENTIAL DESIGN AND DEVELOPMENT EXPECTATIONS. 11. GOVERNOR'S OFFICE OF HIGHWAY SAFETY DUI AND ENFORCEMENT OVERTIME CONTRACT This is a request for City Council authorization to accept a DUI Overtime Grant in the amount of $40,000 from the State of Arizona Governor's Office of Highway Safety. These funds support overtime services needed to take enforcement action on speeding and/or aggressive drivers, alcohol and/or drug impaired drivers, and to enforce other highway/roadway related laws in order to reduce accident related injuries and fatalities in the City of Glendale. This will be the fifth consecutive year of this partnership. This grant will assist the Glendale Police Department in enforcing highway/roadway safety related laws to reduce accident related injuries and fatalities in the City of Glendale. There will be no cost to the city for this grant. The department is expecting reimbursement of overtime costs up to $40,000. 14 The recommendation was to waive reading beyond the title and adopt a resolution authorizing the acceptance of a grant from the State of Arizona Governor's Office of Highway Safety. Resolution No. 3768 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 THE ACCEPTANCE OF GRANT FUNDS FROM THE ARIZONA GOVERNOR'S OFFICE OF HIGHWAY SAFETY TO SUPPORT OVERTIME ENFORCEMENT ACTIVITIES BY THE GLENDALE POLICE DEPARTMENT FOR DUI AND SPEED ENFORCEMENT. 12. INTERGOVERNMENTAL AGREEMENT FOR A GLENDALE HIGH SCHOOL HEALTH CARE CLINIC This is a request for City Council authorization to enter into an Intergovernmental Agreement with the Glendale Union High School District (GUHSD) to establish a school-based primary health care clinic at Glendale High School. The clinic will provide quality and accessible primary health care services to medically underserved students at Glendale High School for Fiscal Year (FY) 2004-05. Community Development Block Grant (CDBG) funds will be utilized for this activity. The Council identified youth programs as one goal to be addressed through CDBG funding. One area identified as a priority is programs that benefit youth. The GUHSD currently operates two primary health care clinics at two other high schools, Independence and Sunnyslope. At Glendale High School, 67% of students are eligible for a free, or reduced-fee lunch, a primary indicator of financial disadvantages which therefore, may contribute to increased health risk. Providing primary health care services at a school site helps to overcome barriers to health care experienced by many of the families who are low or moderate-income. The Community Development Advisory Committee (CDAC) presented its funding recommendations to the Council at the March 2, 2004 Workshop. After the 30-day public comment period and public hearing, the Council formally adopted the CDAC's funding recommendations for Fiscal Year 2004-05 at the April 13, 2004 council meeting. This program is expected to provide primary health care to approximately 260 underserved youth. The Council approved funding for this project during the adoption of the Fiscal Year 2004-05 CDBG Annual Action Plan. These funds will be utilized to provide assessment and management of acute minor illness or injury, prescriptions, medications, physical exams, sports physicals, well-child screening, examinations, and immunizations, etc. 15 Grants Capital One-Time Budgete Unbudgeted Total Expense _ Cost d $8,080 $8,080 Account Name, Fund, Account and Line Item Number: Community Development Block Grant Fund 11-7373-7330 The recommendation was to waive reading beyond the title and adopt a resolution authorizing the entering into of an Intergovernmental Agreement with Glendale Union High School District for the Glendale High School Health Care Clinic. Resolution No. 3769 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 GLENDALE UNION HIGH SCHOOL DISTRICT FOR THE GLENDALE HIGH SCHOOL HEALTH CARE CLINIC. Vice Mayor Eggleston opened the public hearing on Consent Resolution Items 10 through 12. As there were no comments, Vice Mayor Eggleston closed the public hearing. It was moved by Clark and seconded by Frate, to approve the recommended actions on Consent Agenda Item Nos. 10 through 12, including the approval and adoption of Resolution No. 3767 New Series, Resolution No. 3768 New Series, Resolution No. 3769 New Series. The motion carried unanimously. 13. INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF PHOENIX FOR INTERSECTION IMPROVEMENTS ALONG 43rd AVENUE AND ALONG CAMELBACK ROAD Mr. Terry Johnson, Transportation Planning Program Administrator, presented this item. This is a request for City Council to authorize the entering into of an Intergovernmental Agreement (IGA) with the City of Phoenix for intersection improvements along 43rd Avenue and along Camelback Road. One of the Council's goals is to improve and provide transportation options in the city. When voters passed a half-cent increase in the sales tax in 2001 to support transportation projects, staff began to implement the Glendale Onboard (GO!) Transportation Program. Improvements are being made to streets, transit, intersections, bicycle and pedestrian paths. In November of 2001, Glendale voters approved funding for intersection capacity/safety improvements along 43rd Avenue and along Camelback Road. In August 2003, the City of Glendale sent a letter of understanding to the City of Phoenix regarding both cities' responsibilities and financial contributions. As a result of 16 cooperation and coordination, the Phoenix Street Transportation Department agreed to participate in the construction of two merge lanes on 43rd Avenue at an estimated total cost of $241,000. The Phoenix Public Transit Department also agreed to participate in the construction of seven bus bays at an estimated total cost of $527,000. The total contribution from the City of Phoenix will be $768,000. Glendale will pay the full cost to design these joint projects. On June 24, 2003, Council approved a design contract with Stanley Consultants, Inc. for the 75th Avenue and Camelback intersection. On October 14, 2003, Council approved a design contract with Kirkham Michael Consulting Engineers for the 67th Avenue and Camelback Road intersection. On October 28, 2003, Council approved a design contract with RBF Consulting for intersection improvements on 43rd Avenue between Bethany Home Road and Peoria Avenue, and on May 25, 2004, Council approved a design contract with AMEC Infrastructure for intersection improvements on 51st Avenue from Camelback Road to Peoria Avenue. Acceptance of this IGA will allow the City of Phoenix to contribute to the GO Program projects on the jurisdictional border of Glendale. 43rd Avenue and Camelback Road are major arterial streets that border between the City of Glendale and the City of Phoenix, and each street carries in excess of 30,000 vehicles per day. The streets have existing curb, gutter, and sidewalk, but the intersections are at, or over capacity. To improve safety and capacity, bus bays, turn lanes, and medians will be constructed to improve traffic flows on these streets. Previous Council actions approved $148,000 for the design of these joint projects. Upon completion of all the improvements at all project locations, the total contribution by the City of Phoenix will be $768,000 including a sum of $241 ,000 from the Phoenix Street Transportation Department and a sum of $527,000 from the Phoenix Public Transit Department. The recommendation was to waive reading beyond the title and adopt a resolution authorizing the entering into of an Intergovernmental Agreement with the City of Phoenix for improvements to intersections along 43rd Avenue and along Camelback Road. Councilmember Lieberman asked if $148,000 represents the full cost to Glendale. Mr. Johnson explained Phoenix is responsible for construction, while Glendale is responsible for landscape and design. He said Glendale would ultimately pay $3.9 million for the improvements along 43rd Avenue and Camelback. Councilmember Lieberman asked if the $3.39 million has been approved in the CIP. Mr. Johnson clarified the CIP will be approved under Item 24. Vice Mayor Eggleston opened the public hearing on Agenda Item No. 13. As there were no comments, Vice Mayor Eggleston closed the public hearing. 17 Resolution No. 3770 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 IMPROVEMENTS TO INTERSECTIONS ALONG 43RD AVENUE AND ALONG CAMELBACK ROAD. It was moved by Clark and seconded by Lieberman, to adopt Resolution 3770. The motion carried unanimously. LAND DEVELOPMENT ACTIONS 14. REZONING APPLICATION ZON04-03: HONEYWELL — 5353 WEST BELL ROAD Mr. Jon Froke, Planning Director, presented this item. This is a request for City Council approval of rezoning application ZON04-03, Honeywell, located at 5353 West Bell Road. The request is to rezone the property from M-1 (Light Industrial) to B-P (Business Park). The proposed rezoning is consistent with the General Plan and the new zoning designation will bring the entire property into conformance with the General Plan. The majority of the property is currently developed with buildings and parking for Honeywell. There are approximately four acres in the northeast corner of the subject property that are vacant. No changes are proposed to the Honeywell building or its use. The request is to change the zoning designation for the property from M-1 (Light Industrial) to B-P (Business Park) to bring the zoning into conformance with the General Plan designation. The proposed zoning designation will accommodate the existing Honeywell use. The rezoning will allow the property to be developed with any of the uses permitted in the B-P (Business Park) zoning district should a change occur in the future. It is possible that the vacant four acres in the northeast corner of the site may be developed with a use allowed in the B-P zoning district. The subject parcel is bordered by the new Desert Glen Shopping Center that is anchored by Kohl's department store to the north of Bell Road, the 51 Bells Business Park on the east, single family residences and Canyon Elementary School to the south, and the Talavi Business Park to the west. On May 20, 2004, the Planning Commission recommended approval of the rezoning application. 18 The rezoning will bring the property into conformance with the General Plan and it will be consistent with the surrounding properties in the area. On April 9, 2004, seventy notification letters were sent out. There were two telephone calls received in response to the request. The differences between the two zoning designations were explained to both of the callers. There was one letter received in response to the Planning Commission public hearing notice. The letter was from a resident in the adjoining neighborhood and was in opposition to the proposed rezoning. The recommendation was to approve Rezoning Application ZON04-03. Councilmember Lieberman asked who initiated the rezoning application. Mr. Froke answered staff at the request of City Council. Councilmember Frate stated the rezoning is a simple housekeeping item. Mr. Froke agreed, stating it will take away zoning that does not belong and help Honeywell sell the property. Vice Mayor Eggleston opened the public hearing on Agenda Item No. 14. As there were no comments, Vice Mayor Eggleston closed the public hearing. It was moved by Lieberman, and seconded by Frate, to approve Rezoning Application ZON04-03. The motion carried unanimously. 15. REZONING APPLICATION ZON04-08: LOS VECINOS — 6701 NORTH 60TH AVENUE Mr. Jon Froke, Planning Director, presented this item. This is a request for City Council approval of Rezoning Application ZON04-08, Los Vecinos, located at 6701 North 60th Avenue. The request is to rezone the property from R-3 (Multiple Residence) to R1-6 (Single Residence). The proposed rezoning is consistent with the General Plan. The new zoning designation will bring the entire property into conformance with the General Plan. Both the General Plan and the City Center Master Plan encourage in-fill development. The property consists of three lots, each approximately 6,000 square feet in size. One lot is developed with a single family detached residence. The remaining two lots are vacant. The request is to change the zoning designation from R-3 (Multiple Residence) to R1-6 (Single Residence) in order to bring the zoning into conformance with the General Plan designation. The rezoning to R1-6 will reduce density and facilitate construction of single-family residences on both of the remaining undeveloped parcels. 19 The subject parcels are in a developed area with a mix of single and multiple residences. On May 20, 2004, the Planning Commission unanimously recommended approval of the rezoning application. The rezoning will bring the property into conformance with the General Plan and facilitate in-fill development with the construction of single-family residences in this neighborhood. On April 9, 2004, seventy-seven notification letters were sent to adjacent property owners and interested parties. There were no phone calls or letters received. The recommendation was to approve Rezoning Application ZON04-08. Vice Mayor Eggleston opened the public hearing on Agenda Item No. 15. As there were no comments, Vice Mayor Eggleston closed the public hearing. It was moved by Goulet, and seconded by Clark, to approve Rezoning Application ZON04-08. The motion carried unanimously. BIDS AND CONTRACTS 16. AWARD OF CONSTRUCTION CONTRACT — CATLIN COURT PHASE VI IMPROVEMENTS Mr. Larry Broyles, City Engineer, presented this item. This is a request for City Council to award a contract to JMH Co., for the construction of streetscape improvements to the historic Catlin Court area bounded by Palmaire and Myrtle avenues, between 57th and 59th avenues. The improvements provided by this project further Council's goals for the enhancement of the Catlin Court historic area. This is a continuing project, started in 1991, for the streetscape improvements in the Catlin Court area. The first phase of the project was completed in 1992, with the fifth phase completed in early 2002. The current phase of the project will construct the improvements on the east side of 57th Avenue, between Palmaire and Myrtle avenues. The improvements include brick paver sidewalk headers, landscaping, irrigation systems, electrical receptacles and pedestrian streetlights. On May 13, 2004 three bids were received and opened. To ensure the construction costs would not exceed the budget the bid documents included two alternates. Alternate one is for improvements on the south side of Myrtle Avenue, from 20 57th Avenue east to the alley entrance. Alternate two is for landscape improvements on the south side of Myrtle Avenue, between 58th Drive and 59th Avenue. JMH Co., a qualified licensed contractor, submitted the lowest bid, including alternates one and two, in the amount of $214,748.90. Construction of this project is another step in completing the right-of-way improvements as indicated in the 1991 Catlin Court District Plan. The elements of this project are consistent with the 1991 Catlin Court District Plan. Development of the district included public input from the property owners and merchants in the Catlin Court area. Funds for the construction of this project are available in Catlin Court, Account No. 31-9558-8300. Grants Capital One-Time Budgete Unbudgete Total Expense Cost X X $214,748.90 Account Name, Fund, Account and Line item Number: Catlin Court, Account No. 31-9558-8300 The recommendation was to approve the award of the construction contract with JMH Co., for the base bid $190,096.10, alternate one $11,732.40, and alternate two $12,920.40, for a total award amount of $214,748.90. Councilmember Lieberman stated he fully supports award of the construction contract. He suggested the project be completed before Thanksgiving so as not to interfere with winter visitors to Catlin Court. It was moved by Lieberman, and seconded by Clark, to approve the award of the construction contract with JMH Co., for the base bid $190,096.10, alternate one $11,732.40, and alternate two $12,920.40, for a total award amount of $214,748.90. The motion carried unanimously. 17. AWARD OF CONSTRUCTION CONTRACT - PYRAMID PEAK WATER TREATMENT PLANT ENHANCEMENTS PHASE ONE Mr. Larry Broyles, City Engineer, presented this item. This is a request for City Council approval of a Construction Manager at Risk (CMAR) construction contract with Hunter Contracting Company for construction of the first of two phases of the Pyramid Peak Water Treatment Plant (WTP) 10 Million Gallon Reservoir and Solids Handling Project. The main facilities included in this phase are two new solids handling lagoons. 21 The Pyramid Peak WTP existing solids handling facilities are operating at the limit of their capability, and additional facilities will be needed to provide adequate solids handling during the winter of 2004-2005. Because of this, the overall project has been divided into two phases with phase one consisting of the additional solids handling lagoons, and phase two consisting of the new 10 million gallon reservoir, as well as the other work needed at the Pyramid Peak WTP. Phase one design has now been completed and Hunter Contracting has established a guaranteed maximum price (GMP) for construction of phase one. Hunter's GMP was reviewed by the project engineering design consultant, Black & Veatch, with staff input from the cities of Glendale and Peoria, and was found to be acceptable. Staff will return to Council during the fall of 2004 for approval of phase two of the construction. On May 27, 2003, Council approved a professional services agreement with Black & Veatch for completion of the engineering design and construction services for a new 10 million gallon reservoir, additional solids handling facilities, new piping and modifications to existing piping, and other improvements at the Pyramid Peak WTP. On February 24, 2004, Council awarded Hunter Contracting Company a Construction Manager at Risk contract for the design support services for the Pyramid Peak WTP. The Pyramid Peak WTP is physically located within the City of Phoenix. A public open house was held on June 10, 2004, to inform neighbors of the plant about the project, including both phase one and phase two work. Information provided included an explanation of the work to be performed and the approximate schedules of construction on both phase one and phase two. No additional staff will be needed to operate the two new solids handling lagoons to be installed during phase one work. The estimated annual cost of cleaning each lagoon will be approximately $7,500 per lagoon, for a total of $15,000 per year for the two new lagoons. The City of Peoria owns 23% of the plant's capacity, and will be paying for 23% of the improvements to be installed in both phase one and phase two of this project, as well as the operating costs. Funds in the amount of $1,470,998.21 for this project are available in Pyramid Peak WTP-Solids Exp., Account No. 83-8029- 8300. Grants Capital One-Time Budgeted Unbudgeted Total Expense Cost X X $1,470,998.2 1 Account Name, Fund, Account and Line Item Number: Pyramid Peak WTP-Solids Exp., Account No. 83-8029-8300 The recommendation was to approve the construction manager at risk construction contract with Hunter Contracting Company in the amount not to exceed $1,470,998.21. 22 It was moved by Martinez, and seconded by Frate, to approve the construction manager at risk construction contract with Hunter Contracting Company in the amount not to exceed $1,470,998.21. The motion carried unanimously. 18. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR THE GLENDALE ONBOARD TRANSPORTATION PROGRAM Mr. Ed Beasley, City Manager, presented this item. This is a request for the City Council to approve an extension of a professional services agreement with URS Corporation, in an amount not to exceed $4,434,000 for general engineering services to complete capital projects in the Glendale Onboard (GO!) Transportation Program. The emphasis of this contract is completing preliminary engineering, and right-of-way acquisition. One of the Council's goals is to improve and provide transportation options in the city. When voters passed a half-cent sales tax increase in November 2001 to support transportation projects, staff began to implement the GO Program. As a result of the completed preliminary engineering in the first two years, improvements are being made to streets, transit, intersections, and bicycle and pedestrian paths. On January 23, 2002, the City of Glendale requested proposals for general engineering services to implement the capital projects approved by voters of Glendale on November 6, 2001. URS Corporation was selected from a competitive Request for Proposal process as the preferred firm. In the first two years, URS Corporation has completed design concepts for most of the projects approved by Glendale voters. The proposed contract extension will, (1) advance the Northern Parkway design concept to hasten early construction and ensure the availability of federal funds, (2) complete major initial right-of-way acquisition along Grand Avenue to support access control, beautification and economic development, (3) purchase right-of-way needed for all GO Program projects, (4) complete outstanding design concept reports, and (5) provide program support including public involvement, quality control, and financial analyses. The notice to proceed on Northern parkway will be withheld until after the regional transportation election in November 2004. On June 11, 2002, the Council awarded a contract to URS Corporation to proceed with General Engineering Services for the GO Program with the option to extend the contract for two additional two-year terms for a total of six years. On November 6, 2003, the Citizens Transportation Oversight Commission approved the second update of a financially balanced 25-year program, and Council approved this program on November 25, 2003. This 25-year program is the basis of the city's annual budget, and the Capital Improvement Program for transportation sales tax funded projects. 23 In November of 2001, Glendale residents approved the GO Program. This program will accomplish improved traffic flow, relieve traffic congestion, increase transportation options, improve air quality, promote economic vitality, and provide regional transportation connections. The GO Program includes multiple opportunities for public input. This year an annual report was mailed to all Glendale households, and a follow-up public meeting was held on April 28, 2004. The design and construction of each project also provides opportunities for public involvement City of Glendale funds for the General Engineering Consultant are programmed as part of the GO Program. Funds for the professional services agreement are available in Fiscal Years 2004-2005 and 2005-2006 Capital Improvement Program: General Engineering Consultant, Account No. 25-9462-8330 in the amount of $3,151,800, Northern Avenue Parkway Preliminary Engineering, Account No. 25-9473- 8330 in the amount of $1,055,750, Grand Avenue: 43rd-71st Access Control/Beautification, Account No. 25-9447-8330 in the amount of $226,450. Grants Capital One-Time Budgeted Unbudgeted Total Expense Cost X $4,434,000 $4,434,000 Account Name, Fund, Account and Line Item Number: General Engineering Contract, Account No. 25-9462-8330: $1,545,000 FY04-05 $1,606,800 FY05-06 Northern Avenue Parkway Preliminary Engineering, Account No. 25-9473-8330: $530,450 FY 04-05 $525,300 FY 05-06 Grand Avenue: 43rd-71st Access Control/Beautification, Account No. 25-9447-8330: $226,450 FY 04-05 The recommendation was to approve an extension of the professional services agreement with URS Corporation, in an amount not to exceed $4,434,000 for general engineering services. Councilmember Clark stated she supports the project, but is concerned about the cost estimate. She referred to the Cost Proposal Summary, asking why the overhead costs are 150 percent that of their direct labor cost. Mr. Book stated 150 percent is a standard percentage markup for professional services. Councilmember Clark expressed her opinion the amount is egregious considering every conceivable cost is already itemized separately. Mr. Book explained direct labor costs are the amounts paid to the employees, whereas the overhead rate covers the cost of health insurance, vacations, utilities, office rental, marketing services, secretarial services and so forth. He noted the rate is used extensively by ADOT and other major employers and assured Councilmember Clark the rate is considered reasonable. Councilmember 24 Clark asked if the majority of the money is going to Northern Parkway. Mr. Book stated Northern Parkway accounts for $1.9 million of the $4.34 million. Councilmember Clark reiterated that she supports the project, stating, however, she has a hard time accepting $4 million for a two year contract with 150 percent overhead. Mr. Book reiterated 150 percent is the industry standard. Mr. Book explained the 150 percent is taken from their hourly rate, pointing out the rate is actually considerably lower than other professions. In response to Councilmember Lieberman's question, Mr. Johnson clarified the Council is voting on the revised scope of work. He explained the contract in the appendix was included for comparison and represents the contract from two years ago. He stated without the extension the general engineering services would stop at the end of June. Councilmember Lieberman asked if the city paid URS the $3,455,000 in last year's contract. Mr. Johnson said they did not use approximately $200,000 in as- needed supplementals. Councilmember Lieberman pointed out, including the previous contract; the city will have paid approximately $8 million to URS for this project. It was moved by Lieberman, and seconded by Martinez, to approve an extension of the professional services agreement with URS Corporation, in an amount not to exceed $4,434,000 for general engineering services. The motion carried by a vote of 5 to 1, with the following Councilmembers voting "aye": Eggleston, Frate, Goulet, Lieberman and Martinez. Councilmembers voting "nay": Clark. PUBLIC HEARING — ORDINANCE 19. ZONING ORDINANCE TEXT AMENDMENT ZIA-04-01; GROUP HOMES Mr. Jon Paladini, Interim City Attorney, presented this item. This is a request for the City Council to amend the Zoning Ordinance to include revised definitions of various group categories, which will allow the ongoing regulation of group homes. The City Council previously established the existing group home requirements in 1993. This amendment is a request to update the group home categories to better reflect group home operations citizens are interested in group homes and their integration into neighborhoods. The text amendment is a request by the Planning Commission. The continued growth of group homes requires current definitions to administer the group home regulations in a consistent manner. The protection of neighborhoods requires the separation between group homes established in the past ordinance be maintained. A Citizen Participation process for the text amendment was completed. Letters were sent to the citywide interested parties list and Valley Partnership. No specific comments or responses to the text amendment were received. The Planning 25 Commission reviewed the text amendment at two workshops on March 11, 2004 and April 8, 2004. The Planning Commission conducted a public hearing on the text amendment at their May 6, 2004 meeting and unanimously recommended approval. The recommendation was to conduct a public hearing and adopt the ordinance approving text amendment ZTA-04-01. Vice Mayor Eggleston opened the public hearing on Agenda Item No. 19. Mr. Randy O'Donnell, a resident of the City of Glendale, asked what the city requires in terms of the minimum square footage per resident. Mr. Paladini explained the city has zoning authority and regulates such things as fire codes and building codes. He said square footage and number of residents per room are regulated by the Department of Health Services or Department of Economic Security. He suggested Mr. O'Donnell visit the DHS or DES websites to learn about specific requirements. Mr. O'Donnell asked if group homes are held to the same use permit requirements as other home-based businesses. Mr. Paladini explained group homes are uses subject to condition, stating they do not require a Conditional Use Permit because group homes have to be reasonably accommodated and treated as a functional family unit under the Federal Fair Housing Act and state laws. Mr. O'Donnell asked how the city knows when a group home is opening. Mr. Paladini stated the homes are licensed by the state and each has to show proof of proper city approvals. He noted a map of current group homes is available at the Planning Department. Mr. O'Donnell expressed concern about the negative impact a group home could have on neighboring property values. He said the modifications needed to accommodate multiple residents would make the home difficult to sell in the future. Vice Mayor Eggleston closed the public hearing. Ordinance No. 2386 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 ZONING ORDINANCE OF THE CITY OF GLENDALE, ARIZONA, ARTICLES 2, 5 AND 7 RELATING TO ADULT CARE HOMES, GROUP FOSTER HOMES AND GROUP HOMES FOR THE DISABLED; AND PROVIDING FOR A SEVERABILITY CLAUSE. It was moved by Frate, and seconded by Martinez, to approve Ordinance No. 2386 New Series. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, and Frate. Members voting "nay": none. 26 ORDINANCES 20. AIRPORT LAND LEASE FOR AIRCRAFT MUSEUM Mr. Mark Ripley, Airport Manager, presented this item. This is a request for the City Council to approve a land lease agreement with Lauridsen Aviation Inc., for 35,687 sq. ft. of land adjacent to the air traffic control tower at Glendale Municipal Airport for construction of a hangar facility for the purpose of operating a working aircraft museum. One of Council's strategic priorities is to enhance the quality of life for Glendale residents. This aircraft museum will accommodate school children and the general public to learn about World War II aircraft. The city issued a request for proposal for the remaining parcel adjacent to the air traffic control tower. This is the lone remaining westside parcel ready for development on the airport. The city received three proposals for the development of this parcel and after a review panel individually scored the proposals, Lauridsen Aviation Inc., scored the highest. Lauridsen Aviation proposes to construct a hangar and associated office space for the operation of a working aircraft museum. Vintage aircraft that will be displayed, include a T-6 North American Trainer, Grumman TBM-3 Avenger Torpedo Bomber, JPT-22 Stearman, T-28 North American Trainer and a B-25J North American Bomber. President George Herbert Walker Bush flew and was shot down in a TBM-3 during World War II. The TBM-3 in this collection was the actual aircraft towed in his inauguration parade. The B-25 was the aircraft used by Lt. Col. Jimmy Doolittle and his raiders to bomb Tokyo during World War II. The lease term is 20 years, with two 10-year options. The lease allows for one year to complete the project. Lauridsen Aviation will pay all of the cost associated with the construction, maintenance and operation of the aircraft museum. The initial annual lease rate is $3,568.70 with an increase to $7,137.40 after the first year or when a certificate of occupancy is issued, which ever comes first. There will be a Consumer Price Index adjustment at the end of the third year and continuing each third year during the full term of the lease. Having an aircraft museum located on the airport will afford, not only Glendale residents, but also the entire west valley the opportunity to learn about the use, contribution and importance of aircraft during World War II. The aircraft museum will be perfect for school tours and should be supported by both active and retired military personnel. 27 At a public meeting held on March 10, 2004, the Aviation Advisory Commission reviewed and voted unanimously to support the aircraft museum as presented in the proposal submitted by Lauridsen Aviation. The recommendation was to waive reading beyond the title and adopt an ordinance authorizing the leasing of land at the Glendale Municipal Airport to Lauridsen Aviation, Inc. In response to Councilmember Lieberman's question, Mr. Ripley explained the parcel is directly north of the wash rack parcel. Councilmember Lieberman asked where would visitor parking be located. Mr. Ripley said there would be an L-shaped area for onsite parking and additional parking will be available to the south of the building. Councilmember Lieberman asked Mr. Ripley to fax him a drawing that depicts the location of the various buildings and hangers. Vice Mayor Eggleston opened the public hearing on Agenda Item No. 20. Mr. Ed Sharp, a resident of the City of Glendale and Director and Lead Archivist at the Southwest Museum of Engineering, Communications and Computation, commended the Mayor, Council and city staff on their efforts to assist in the establishment of the new aviation museum. He said all in the museum community wish to welcome Lauridsen to Glendale. He stated Council's action reinforces the determination and forward thinking of the city to help future generations explore their history. Vice Mayor Eggleston closed the public hearing. Ordinance No. 2387 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE MAYOR AND/OR CITY MANAGER AND CITY CLERK TO EXECUTE AN AIRPORT LAND LEASE AGREEMENT WITH LAURIDSEN AVIATION FOR AN AIRCRAFT MUSEUM AT THE GLENDALE MUNICIPAL AIRPORT. It was moved by Clark, and seconded by Lieberman, to approve Ordinance No. 2387 New Series. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, and Frate. Members voting "nay": none. 21. ADOPTION OF BOND ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS Mr. Art Lynch, Chief Financial Officer, presented this item. 28 This is a request for City Council to adopt an ordinance awarding the general obligation bonds to the lowest responsive bidder and to authorize the issuance of bonds. The bond proceeds fund various projects included in the city's Capital Improvement Plan (CIP) budget. Glendale voters authorized the issuance of bonds in November 1999. Glendale voters 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. This bond sale will fund specific projects previously approved by Council in the CIP budget. 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. A Preliminary Official Statement was distributed to various underwriting firms that are active in the Arizona municipal market. Proposals were received from the underwriting firms. Staff and the city's Financial Advisor evaluated and verified the bids received to assure their accuracy and benefit to the city. A summary of the bids, the name of the winning bidder, and the terms of the bonds will be provided to Council at this evening's meeting. Council can accept the lowest, most responsive bid by adopting the bond ordinance. In 1999, Glendale citizens authorized the issuance of bonds to fund a variety of city projects. Council approved the city's fiscal year 2003-04 CIP budget, which anticipated the issuance of general obligation bonds to fund a portion of CIP projects. Bonds are issued at this time to take advantage of the current interest rate environment and to optimize cash flow for projects that are now underway. On June 1, 2004, Council adopted a resolution authorizing the publication of a notice of the city's intent to sell general obligations in The Glendale Star, and authorized staff to prepare and distribute the Official Statement and other bid documents. 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 will be paid from the city's secondary property tax rate as anticipated in the city budget. The Finance Department evaluated a variety of bond structures to minimize interest cost. Approving the ordinance with an emergency clause is recommended to lock in the interest rate, since the winning bid is effective only for a limited time. 29 The recommendation was to waive reading beyond title and adopt an ordinance authorizing the sale and issuance of the principal amount of bonds set forth in the ordinance (but not to exceed $38,000,000) of general obligation bonds and declaring an emergency. Mr. Lynch confirmed for Councilmember Lieberman that the interest rate is 4.149242%. Councilmember Lieberman asked if the interest rate would remain the same for the life of the bonds. Mr. Lynch responded yes. Councilmember Lieberman pointed out Council was told a few weeks ago that there was only $800,000 left in the six percent bonding balance. Mr. Lynch explained the sale of the proposed bonds was factored into the $800,000. Councilmember Lieberman asked what percentage of the bonds are six percent versus 20 percent. He asked if the bonds were sold over the Internet. Mr. Lynch responded yes, stating they had a high level of interest. Ordinance No. 2388 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF CITY OF GLENDALE, ARIZONA GENERAL OBLIGATION BONDS, SERIES JUNE 1, 2004, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $38,000,000 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 BONDS; AUTHORIZING THE EXECUTION OF A BOND REGISTRAR AGREEMENT; AUTHORIZING AN OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION OF A CONTINUING DISCLOSURE UNDERTAKING, DTC LETTER AGREEMENT AND CERTAIN OTHER DOCUMENTS AND THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE AND DELIVERY OF THE BONDS; AND DECLARING AN EMERGENCY. It was moved by Goulet, and seconded by Clark, to approve Ordinance No. 2388 New Series. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, and Frate. Members voting "nay": none. 22. ADOPTION OF BOND ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF STREET AND HIGHWAY USER REVENUE BONDS Mr. Art Lynch, Chief Financial Officer, presented this item. This is a request for the City Council to adopt an ordinance awarding the street and highway user revenue bonds to the lowest responsive bidder and to authorize the issuance of bonds. 30 The bond proceeds fund various projects included in the city's Capital Improvement Plan (CIP) budget. Glendale voters authorized the issuance of the bonds in the 1987 bond election. Pending favorable interest rates, the bonds also include a refunding component to refinance outstanding Street and Highway Revenue bonds for interest savings. Glendale voters 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. A Preliminary Official Statement was distributed to various underwriting firms that are active in the Arizona municipal market. Proposals were received from the underwriting firms. Staff and the city's Financial Advisor evaluated and verified the bids received to assure their accuracy and benefit to the city. A summary of the bids and the name of the winning bidder, and the terms of the bonds will be provided to Council at this evening's meeting. Council can accept the lowest, most responsive bid by adopting the bond ordinance. In 1987, Glendale citizens authorized the issuance of bonds to fund a variety of city projects. Council approved the city's fiscal year 2003-04 CIP budget, which anticipates the issuance of street and highway user revenue bonds to fund a portion of 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. On June 1, 2004, Council adopted a resolution, which authorized the publication of a notice of the city's intent to sell highway revenue bonds in The Glendale Star, and authorized staff to prepare and distribute the Official Statement and other bid documents. Budgeted CIP projects that will be funded by this transaction include improvements on Bethany Home Road from 75th to 83rd avenues, Bethany Home Road from 83rd to 99th avenues, 67th Avenue from Camelback Road to Grand Avenue, sound walls at the Loop 101 between 51st and 75th avenues, widening 91st Avenue from Camelback Road to Northern Avenue, 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. The bonds will be paid from the city's share of certain highway user revenues collected by the State of Arizona and distributed to the city. These revenues include fuel taxes, registration revenues, vehicle license tax, and other motor vehicle revenues. The city received approximately $14,183,000 in Highway User Tax Revenues in fiscal 31 year 2003. Approving the ordinance with an emergency clause is recommended to lock in the interest rate, since the winning bid is effective only for a limited time. The recommendation was to waive reading beyond title and adopt an ordinance authorizing the sale and issuance of the principal amount of bonds set forth in the ordinance (but not to exceed $17,000,000) of Street and Highway User Revenue bonds, and declaring an emergency. In response to Councilmember Clark's question, Mr. Lynch explained the city's rating increased from A+ to AA-, stating the more A's the higher the rating. He pointed out an AA- rating puts the city in the top ten percent of people who sell bonds in the country. Ordinance No. 2389 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF CITY OF GLENDALE, ARIZONA STREET AND HIGHWAY USER REVENUE BONDS, SERIES JUNE 1, 2004, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $17,000,000 FOR THE PURPOSE OF PROVIDING FUNDS TO IMPROVE, CONSTRUCT, RECONSTRUCT AND MAINTAIN STREETS AND HIGHWAYS IN THE CITY AND TO ACQUIRE RIGHTS-OF-WAY FOR THAT PURPOSE AND TO PAY ALL NECESSARY LEGAL, FINANCIAL, ARCHITECTURAL, ENGINEERING AND OTHER COSTS IN CONNECTION THEREWITH AND FOR THE PURPOSE OF PROVIDING FUNDS TO REFUND CERTAIN PRIOR BONDS; PROVIDING FOR THE AWARD OF SAID BONDS; AUTHORIZING THE EXECUTION OF A BOND REGISTRAR AGREEMENT; AUTHORIZING AN OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION OF A CONTINUING DISCLOSURE UNDERTAKING, DEPOSITORY TRUST AGREEMENT AND CERTAIN OTHER DOCUMENTS AND THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE AND DELIVERY OF THE BONDS; AND DECLARING AN EMERGENCY. It was moved by Clark, and seconded by Martinez, to approve Ordinance No. 2389 New Series. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, and Frate. Members voting "nay": none. 23. FISCAL YEAR 2004-05 PROPERTY TAX LEVY Mr. Ed. Beasley, City Manager, presented this item. This is a request for the City Council to set the property taxes for the FY04-05 and adopt an ordinance setting the FY04-05 primary property tax rate at $0.3273 per $100 of assessed valuation and the secondary property tax rate at $1.3927 per $100 of assessed valuation. The total property tax rate has not changed since FY00-01 . 32 The setting of the property tax rates for FY04-05 is consistent with the Council's goal of ensuring the city's financial stability. Arizona state law requires that City Council set the property tax levy by the third Monday in August. Arizona's state property tax levy consists of two tiers. The primary property tax levy has state-mandated maximum limits, but it can be used by a city for any lawful purpose. It is the primary property tax revenue that is included in the General Fund. The secondary property tax levy is not limited and can be used only to retire the principal and interest on a municipality's General Obligation bond debt. While the City of Glendale's total property tax rate has remained unchanged at $1 .72 per $100 of assessed valuation since Fiscal Year 2000-01, the city has adjusted the two components of the overall property tax rate. Specifically, the city has continued to lower the primary property tax rate and increase the secondary property tax rate so that all assessed valuation growth due to appreciation (versus new construction) is shifted to the secondary property tax rate. All Truth-in-Taxation requirements of A.R.S. 42-17107 have been met and the primary property tax levy has not increased except for an amount attributable to new construction. The city's proposed primary property tax rate for FY04-05 was discussed at the February 17, 2004 Council workshop as part of Council's review of the Fiscal Year 2004-05 GF revenue projections. The city's proposed secondary property tax rate for Fiscal Year 2004-05 was discussed at the March 23, 2004 Council budget workshop on the Fiscal Year 2005-14 preliminary capital improvement program (CIP). It is estimated that the Fiscal Year 2004-05 primary property tax will generate $3.6 million and the secondary property tax will generate $15.9 million for a total of $19.5 million in Fiscal Year 2004-05. The recommendation was to waive reading beyond the title and adopt an ordinance setting the Fiscal Year 2004-05 primary property tax at $0.3273 per $100 of assessed valuation and the secondary tax rate at $1.3927 per $100 of assessed valuation, for a total property tax rate of $1.72. The total property tax rate has not changed since Fiscal Year 2000-01. Councilmember Lieberman reiterated the city's total property tax rate has remained the same since 2001, pointing out the rate decreased to $1.72 in 2000/01. Ordinance No. 2390 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE CITY OF GLENDALE, SUBJECT TO TAXATION, A 33 CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS ($100.00) OF VALUATION SUFFICIENT TO RAISE THE AMOUNT ESTIMATED TO BE REQUIRED IN THE ANNUAL BUDGET, LESS THE AMOUNT ESTIMATED TO BE RECEIVED FROM OTHER SOURCES OF REVENUE; PROVIDING FUNDS FOR VARIOUS BOND REDEMPTIONS, FOR THE PURPOSE OF PAYING INTEREST UPON BONDED INDEBTEDNESS AND PROVIDING FUNDS FOR GENERAL MUNICIPAL EXPENSES; ALL FOR THE FISCAL YEAR ENDING THE 30TH DAY OF JUNE, 2005; AND DECLARING AN EMERGENCY. It was moved by Frate, and seconded by Martinez, to approve Ordinance No. 2390 New Series. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, and Frate. Members voting "nay": none. PUBLIC HEARING — RESOLUTION 24. FINAL REVIEW AND ADOPTION OF THE FISCAL YEAR 2004-05 BUDGET Ms. Sherry Schurhammer, Budget Director, presented this item. This is a request for the City Council to review and approve the $653 million Fiscal Year (FY) 2004-05 final operating and capital budget, conduct a public hearing, and adopt a resolution formally adopting the operating and capital budget for FY04-05. Review of the final FY04-05 operating and capital 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 proposed FY04-05 operating and capital budget, as well as 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 the 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. 34 Other additions to the FY04-05 operating budget include: • 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. Fiscal Year 2004-05 general fund revenues (GF) are expected to continue to grow, with the most notable increase expected in city sales tax revenues. This source alone is 35% of the city's GF revenue budget for Fiscal Year 2004-05. This specific revenue source is expected to increase $4 million, or 9%, over the Fiscal Year 2003-04 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 Fiscal Year 2003-04. State-shared revenues represent 33% of the city's GF revenue budget. The state sales tax, state income tax, and motor vehicle in-lieu tax comprise state-shared revenues. State-shared revenues are held flat for Fiscal Year 2004-05. The reason for this conservative approach is the expected decrease in state-shared revenues in Fiscal Year 2005-06 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 Fiscal Year 2002-03, 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. 35 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. ➢ 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 Fiscal Year 2004-05 preliminary operating and capital budget was presented to City Council on June 1, 2004. Also on June 1, 2004, the City Council conducted a public hearing on the preliminary Fiscal Year 2004-05 budget and adopted a resolution accepting the preliminary Fiscal Year 2004-05 budget. Prior to June 2004, a series of Council budget workshops were conducted in February, March, and April 2004 to review the proposed operating and capital budget for Fiscal Year 2004-05, as well as GF revenue projections for Fiscal Year 2004-05. The fifth budget workshop with Council occurred on April 20, 2004. Council reviewed the final balancing information regarding the Fiscal Year 2004-05 base budget 36 and supplemental requests, as well as the Preliminary Fiscal Year 2005-14 Capital Improvement Plan (CIP) with the recommended changes that were presented at the March 23, 2004 budget workshop. The fourth 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. The third 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 second budget workshop with Council occurred on March 23, 2004. This workshop covered the Fiscal Year 2004-05 Pay As You Go (PAYGO) capital projects for the General Fund (GF), the Capital Improvement Program (CIP) operating and maintenance supplementals, the Fiscal Year 2005-14 preliminary CIP, and the Fiscal Year 2004 preliminary carryover requests. The first 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 Fiscal Year 2004-05 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 Fiscal Year 2005-14 CIP at the January 6, 2004 workshop. As a follow up to the January 6 workshop, a detailed report on the draft Fiscal Year 2005-14 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. 37 The budget provides Council and residents with a means to evaluate the city's financial stability. The Fiscal Year 2004-05 preliminary operating and capital budget was presented to City Council at the Council evening meeting on June 1, 2004. Also on June 1, 2004, City Council conducted a public hearing on the preliminary Fiscal Year 2004-05 budget and adopted a resolution accepting the preliminary Fiscal Year 2004-05 budget. Summary information regarding the preliminary budget was published in the Glendale Star on June 10, 2004 and June 17, 2004. All Council budget workshops held in February, March, and April 2004 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 Fiscal Year 2004-05 are as follows: • The operating budget finances the day-to-day provision of city services and totals $268 million (all funds). • 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 budget includes revenue estimates totaling $410.1 million (all sources). Total uses of all fund balances, which includes proceeds from bonds previously sold, total approximately $242.9 million. The primary property tax rate will be set at $0.3273 and the secondary tax rate will be set at $1.3927 for a total tax rate of $1.72. The total tax rate is unchanged from Fiscal Year 2003-04. All Truth-in-Taxation requirements of A.R.S. 42-17107 have been met and the primary property tax levy has not increased except for an amount attributable to new construction. 38 The recommendation was to conduct a public hearing on the proposed estimates and tax levy, waive reading beyond the title, and adopt a resolution formally adopting the operating and capital budget for Fiscal Year 2004-05. Vice Mayor Eggleston opened the public hearing on Agenda Item No. 24. As there were no comments, Vice Mayor Eggleston closed the public hearing. Resolution No. 3771 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 FINAL BUDGET; SETTING FORTH THE REVENUE, THE AMOUNT TO BE RAISED BY DIRECT PROPERTY TAXATION FOR THE VARIOUS PURPOSES; AND GIVING NOTICE OF THE TIME FOR HEARING TAXPAYERS FOR FIXING THE TAX LEVIES. It was moved by Goulet, and seconded by Clark, to pass, adopt and approve Resolution No. 3771 New Series. Councilmember Martinez commented that the budget includes a lot of good projects, including the Foothills Aquatics and Multi-Generational Center. He thanked residents who participated in the meetings and provided input and staff for their hard work. Upon a call for the question, the motion carried unanimously. RESOLUTIONS 25. PROPOSED INCREASE TO WATER RATES Mr. Roger Bailey, Utilities Director, presented this item. This is a request for the City Council to adopt a resolution declaring the city's intent to raise water rates by 3%, effective January 2, 2005, and setting the date of a public hearing on the proposed increases for October 26, 2004. In order to be consistent with the Council goals of providing financial stability and coordinating exceptional service delivery, an increase in water rates is necessary. In 2003, consultant Black & Veatch prepared an updated report on the city's water and sewer rates. Their update utilized the methodology established by Tischler and Associates, Inc. in the comprehensive fee study completed in 2001. The February 2, 2004, Black & Veatch evaluation recommended that water rates be increased. Following a series of Council workshops from October to December 2003, wherein the Black & Veatch report and recommendations were presented, City Council 39 directed staff to begin the process to implement the new water rate structure, with the first increase of 3% to be effective January 2, 2005. This water rate increase is required in order for the Water Enterprise Fund to maintain an adequate operational cash reserve and finance a ten-year Capital Improvement Program necessary for the viability of the water system. The rate increase will offset maintenance or replacement of an aging infrastructure and escalating regulations and mandates set by federal and state regulatory agencies related to the operational aspects of all City of Glendale water treatment facilities. Additionally, the City's Utilities Department must be able to meet criteria set by bonding companies as a prerequisite to receiving a superior bond rating. On June 8, 1993, the Council adopted a notice of intention to increase water and wastewater rates and set the public hearing for July 13, 1993. On July 13, 1993, following the legally prescribed public hearing, Council authorized a three-year series of rate increases beginning with the November 1, 1993, billing and ending with the November 1, 1995 billing. The increase in the water rate also applied to the urban irrigation rate. No further water rate increases have been authorized since November 1, 1995. The proposed rates will be used for improvements to the existing water infrastructure including the plants and distribution system. This will result in improvements to the quality of service provided The recommendation was to waive reading beyond the title and adopt a resolution declaring the city's intent to raise water rates by 3%, effective January 2, 2005, and setting the public hearing for October 26, 2004. Councilmember Clark asked if at least a portion of the rate increase is due to staff's recommendation for three new groundwater treatment plants at a cost of approximately $10 million per plant. Mr. Bailey said the groundwater facilities would be covered by impact fees; however the rate will help offset the cost of improvements related to water quality issues. In response to Vice Mayor Eggleston's question, Mr. Bailey said the water rate covers the cost of operation. He pointed out this is the first increase in eight years. Resolution No. 3772 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 WATER USER CHARGES; SETTING A PUBLIC HEARING ON THE PROPOSED INCREASE; AND FILING A WRITTEN REPORT SUPPORTING THE PROPOSED INCREASE WITH THE CITY CLERK. 40 It was moved by Frate, and seconded by Martinez, to pass, adopt and approve Resolution No. 3772 New Series. The motion carried unanimously. 26. INTERGOVERNMENTAL AGREEMENT WITH CITY OF SURPRISE TO PROVIDE MATERIALS RECOVERY FACILITY SERVICES Mr. Norm Gumenik, Solid Waste Superintendent, presented this item. This is a request for the City Council authorization to enter into an intergovernmental agreement (IGA) to provide Materials Recovery Facility (MRF) processing services to the City of Surprise. The IGA will provide the City of Glendale with additional recyclables to market, and serve as a final destination point for Surprise's recently established curbside recycling program. One of Council's strategic priorities is to strengthen community relationships and create new partnerships. This agreement reflects a new and beneficial partnership between the communities of Glendale and Surprise. An additional Council strategic priority is providing financial stability. The additional recyclable material received by the Glendale MRF will allow the city to market additional commodities, resulting in increased revenues and more cost effective solid waste services. In early 2002, Glendale staff was contacted by representatives from the City of Surprise (Surprise) for information, and to determine potential services available to assist Surprise with the development and startup of a curbside recycling collection program. Surprise would be responsible for the collection and transportation of the residential recyclables to Glendale's MRF for processing. Staff provided educational information and agreed to provide MRF processing service for recyclables delivered by Surprise on a trial basis. On January 31, 2003, Surprise began delivering recycled cardboard collected from a courtesy welcome program for new residents. In August 2003, Surprise ordered recycling containers for the future curbside collection program with assistance from a grant received from the Arizona Department of Environmental Quality. In October 2003, Surprise approved a pilot curbside recycling program and began providing service to approximately 3,900 single-family households. The commingled recyclables were delivered to the MRF. On March 4, 2004, Surprise completed the citywide delivery of recycling containers, and began providing service to an estimated 17,000 single-family households. On May 27, 2004, the Surprise City Council approved the proposed IGA with Glendale for MRF services. The term of the agreement is five years, and provides for three (3) five-year renewal options. A revenue sharing agreement may be negotiated at the time of the first renewal option, beginning July 2009. There is no revenue sharing in 41 the current agreement. Either party may terminate the IGA at any time, with or without cause, upon providing a sixty-day written notice. On May 27, 2004, the Surprise City Council approved the proposed IGA with Glendale for MRF services. On March 4, 2004, the Glendale MRF began processing commingled recyclables from Surprise's citywide curbside collection program. In October 2003, the Glendale MRF began processing commingled recyclables from Surprise's pilot curbside collection program. On October 3, 2003, the Surprise City Council approved the Surprise's curbside collection recycling program. On January 31, 2003, the Glendale MRF began processing cardboard received from Surprise's courtesy welcome program for new residents. In 2002, Glendale staff was requested by Surprise to assist with the development of Surprise's curbside recycling program. The additional recyclable material received by the Glendale MRF will allow the city to market additional commodities, resulting in increased revenues and more cost effective solid waste services for Glendale residents. The additional commodities resulting from the materials received from Surprise has a current annual value of $324,000. Commodity revenues will be deposited into account 55-0055-4512. Processing costs will increase by $93,600 for additional temporary staffing. The additional operating cost associated with the agreement will be covered by the existing MRF operating budget. No additional equipment is required. The recommendation was to waive reading beyond the title and adopt a resolution authorizing the entering into of an intergovernmental agreement with the City of Surprise. Resolution No. 3773 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 SURPRISE FOR MATERIALS RECOVERY FACILITY SERVICES. It was moved by Clark, and seconded by Frate, to pass, adopt and approve Resolution No. 3773 New Series. The motion carried unanimously. REQUEST FOR FUTURE WORKSHOP AND EXECUTIVE SESSION 42 It was moved by Lieberman, and seconded by Frate, to excuse Mayor Scruggs from tonight's meeting. The motion carried unanimously. It was moved by Lieberman, and seconded by Clark, to hold a City Council Workshop at 1:30 p.m. in Room B-3 of the City Council Chambers on Tuesday, July 6, 2004, to be followed by an Executive Session pursuant to A.R.S. 38-431.03. The motion carried unanimously. CITIZEN COMMENTS Mr. Leonard Clark, a resident of the City of Glendale Barrel District, stated his neighborhood needs a park, explaining the regional park by Resthaven Cemetery and Sahuaro Ranch Park lie on the other side of busy arterial streets. In response to previous citizen complaints about the Luke Link bus no longer stopping at the commissary, he said he took a ride on the Luke Link bus and saw a legally blind veteran who had to walk in the heat and navigate around numerous potholes. He encouraged the Council to address the issue. He concluded his comments stating, "absolute power corrupts absolutely" Mr. William Barber also submitted a speaker's card, but was not available for comment. COUNCIL COMMENTS AND SUGGESTIONS Councilmember Clark announced a meeting concerning a land planning proposal at 87th Avenue and Camelback will be held on June 28 at Coyote Ridge Elementary. She said a safety car seat inspection would be conducted on July 10 at the Western Public Safety Facility. Councilmember Lieberman encouraged everyone to come to the 4th of July fireworks celebration at Glendale Community College. Councilmember Frate encouraged residents to read the Water Quality Report distributed by the city's Utility Department. He stated the next water safety walk would be held on June 30. He urged everyone to watch children around water. ADJOURNMENT There being no further business, the meeting was adjourned at 9:15 p.m. (?(.k Rosemary Ramir — Deputy City C) /k 43