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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 10/11/2005 MINUTES OF THE REGULAR MEETING OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, HELD TUESDAY, OCTOBER 11, 2005, AT 7:00 P.M. The meeting was called to order by Mayor Elaine M. Scruggs, with Vice Mayor Thomas R. Eggleston and the following Councilmembers present: Joyce V. Clark, Steven E. Frate, David M. Goulet, H. Philip Lieberman, and Manuel D. Martinez. Also present were Ed Beasley, City Manager; Pam Kavanaugh, Assistant City Manager; Craig Tindall, City Attorney; and Pamela Hanna, City Clerk. Mayor Scruggs recognized Boy Scout Troop 192. Leaders Doug Kennedy, Scott Estes and Ken Ramage. Scouts Braden Bullock, Benson Farris, Derek Greer, Dion Nielsen, Daniel Workman, Zach Schofield and Grant Watkins. Mayor Scruggs recognized students from Cactus High School Government Class. In attendance was Tori Flavell, Kristin Manley, Jeanette Doerr, Michael O'Conner, Nichole Guie, Taryn Luttrell, Kellen Graham, Nolan Chapman, Jeffrey Lutz and Rod Cuthbertson. COMPLIANCE WITH ARTICLE VII, SECTION 6(c) OF THE GLENDALE CHARTER A statement was filed by the City Clerk that the one resolution and two 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 SEPTEMBER 27, 2005 CITY COUNCIL MEETING It was moved by Goulet, and seconded by Clark, to dispense with the reading of the minutes of the September 27, 2005 City Council meeting, as each member of the Council had been provided copies in advance, and approve them as written. The motion carried unanimously. CONSENT AGENDA Mr. Ed Beasley, City Manager, read Agenda Item Numbers 1 through 6 and Ms. Pamela Hanna, City Clerk, read Consent Resolution Agenda Item Number 7 by number and title. 1. LIQUOR LICENSE NO. 3-1015 GRAND DRAGON This is a request by Pei Tan for the City Council to approve a new series 12 (restaurant, all liquor) license for Grand Dragon located at 4730 West Olive Avenue. 1 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 City of Glendale Planning Department, the City of Glendale 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 for Liquor License Number 3-1015. 2. SPECIAL EVENT LIQUOR LICENSE FOR CATHOLIC SINGLES MINISTRY This is a request by Tom Tygett for the City Council to approve a special event liquor license to the Catholic Singles Ministry for the SRP Thunderbird Balloon & Air Classic, which will be held at 6801 North Glen Harbor Boulevard. The event will be held on Friday, October 28, from 4 p.m. to 10 p.m.; Saturday, October 29, from 11 a.m. to 10 p.m.; and Sunday, October 30, 2005 from 11 a.m. to 6 p.m. If this license is approved, the total days expended by this applicant will be three of the allowed ten days for this calendar year. Under the provisions of Arizona Revised Statutes Sec. 4-203.02, the Arizona Department of Liquor Licenses and Control may issue a special event liquor license only if the City Council recommends approval of such license. The recommendation was to forward a recommendation for approval to the Arizona Department of Liquor Licenses and Control for the special event liquor license for the Catholic Singles Ministry. 3. SPECIAL EVENT LIQUOR LICENSE FOR GOLDEN WHEEL This is a request by Melynda King for the City Council to approve a special event liquor license for the Golden Wheel. The event is an annual fundraiser for scholarships and the West Valley Child Crisis Center, which will be held at 13327 North 65th Drive. The event will be held on Saturday, December 3, 2005, from 6 p.m. to midnight. If this license is approved, the total days expended by this applicant will be one of the allowed ten days this year. Under the provisions of Arizona Revised Statutes Sec. 4-203.02, the Arizona Department of Liquor Licenses and Control may issue a special event liquor license only if the City Council recommends approval of such license. 2 The recommendation was to forward a recommendation for approval to the Arizona Department of Liquor Licenses and Control for this special event liquor license for Golden Wheel. 4. SPECIAL EVENT LIQUOR LICENSE FOR OUR LADY OF PERPETUAL HELP SCHOOL This is a request by Maureen DeGrose for the City Council to approve a special event liquor license for Our Lady of Perpetual Help School. The event is the Fall Festival 2005, a fundraiser for the school, which will be held at 7521 North 57th Avenue. The event will be held on Saturday, October 22, from 5 p.m. to 10 p.m.; and Sunday, October 23, 2005, from 10 a.m. to 8 p.m. If this license is approved, the total days expended by this applicant will be three of the allowed ten days for this calendar year. Under the provisions of Arizona Revised Statutes Sec. 4-203.02, the Arizona Department of Liquor Licenses and Control may issue a special event liquor license only if the City Council recommends approval of such license. The recommendation was to forward a recommendation for approval to the Arizona Department of Liquor Licenses and Control for the special event liquor license for Our Lady of Perpetual Help School. 5. SPECIAL EVENT LIQUOR LICENSE FOR THUNDERBIRD RUGBY FOOTBALL CLUB This is a request by Scott Harper for the City Council to approve a special event liquor license for the Thunderbird Rugby Football Club. The event is the Rugby International Tournament, which will be held at 15249 North 59th Avenue. The event will be held on Friday, November 4, from 8 a.m. to midnight; Saturday, November 5, from 8 a.m. to 8 p.m.; and Sunday, November 6, 2005, from 8 a.m. to 8 p.m. If this license is approved, the total days expended by this applicant will be three of the allowed ten days for this calendar year. Under the provisions of Arizona Revised Statutes Sec. 4-203.02, the Arizona Department of Liquor Licenses and Control may issue a special event liquor license only if the City Council recommends approval of such license. The recommendation was to forward a recommendation for approval to the Arizona Department of Liquor Licenses and Control for this special event liquor license for Thunderbird Rugby Football Club. 3 6. 83RD AVENUE ROADWAY IMPROVEMENTS: BELL ROAD TO LOOP 101 BRIDGE This is a request for the City Council to approve a Guaranteed Maximum Price construction contract with PCL Civil Constructors for roadway improvements along 83rd Avenue, from Bell Road to the Loop 101 Bridge. This project supports the Council's goals of creating transportation options within the city. Traffic improvements are needed on 83rd Avenue between Bell Road and the Loop 101 Bridge. The southbound right turn lane on 83rd at Bell Road needs to be lengthened to reduce delays, a third through lane will be installed between Bell Road and Campo Bello Drive, a second through lane will be installed between Campo Bello Drive and Loop 101 to reduce congestion, and the lane drop for southbound traffic needs to be eliminated to enhance traffic flows. Curbs and medians are also needed to improve traffic flow, facilitate drainage, and eliminate traffic hazards. The recommended contract with PCL Civil Constructors will complete these improvements at the Guaranteed Maximum Price. The Guaranteed Maximum Price was reviewed and accepted by the city's Engineering Department staff. Proposition 402, as approved by voters in 2001, provides funding for "intersection improvements" at 83rd Avenue and Bell Road, as well as the elimination of "lane drops" and "traffic hazards" throughout the city. The Citizens Transportation Oversight Commission took action on June 3, 2004 to recommend the use of GO Program sales tax to fund the construction of this project. The proposed street improvements will provide additional turn lanes, through lanes, curbs and median in the area of 83rd Avenue and Bell Road to reduce congestion, improve traffic flow, and enhance safety. The total cost to construct street improvements for this project is $1,012,803. Funds for this project are available in two accounts: Intersection Improvements, Account No. 33-9448-8300, and Street Scallop, Account No. 31-8558-8300. To cover the cost for this project, $1,000,000. needs to be transferred from Intersection Improvements, Account No. 33-9448-8300 to 83rd/Bell Rd.-Loop 101 Rdwy Imp, Account No. 33-9492-8300. Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total X X $1,012,803 Account Name, Fund, Account and Line item Number: 83rd/Bell Rd.-Loop 101 Rdwy Imp, Account No. 33-9492-8300 $1,000,000 Street Scallop, Account No. 31-8558-8300 $12,803 4 The recommendation was to authorize the transfer of funds in the amount of $1,000,000. from Account No. 33-9448-8300 to Account No. 33-9492-8300 and approve the Guaranteed Maximum Price construction contract with PCL Civil Constructors in the amount of $1,012,803. CONSENT RESOLUTIONS 7. STATE OF ARIZONA PURCHASING COOPERATIVE AGREEMENT This is a request for the City Council to authorize the entering into of the Arizona State Purchasing Cooperative Agreement, with the State of Arizona Enterprise Procurement Services, for Fiscal Year 2005-06. The Agreement permits the purchase of materials and services from state contractors at the prices and terms of the contracts between the state and those state contractors. Entering into a Purchasing Cooperative Agreement with the State of Arizona will provide exceptional service delivery through cost savings and an expedited process of meeting operational needs. The State of Arizona Enterprise Procurement Services obtain materials and services for state agencies. Arizona Revised Statutes authorize intergovernmental cooperative purchasing with political subdivisions for the purpose of utilizing state contracts. The current cooperative, in which the city is a member, consists of 135 state agencies and 400 cooperative participating members. The city is a current member of the cooperative. This resolution is to permit execution of the membership agreement, which is for a one-year period, renewable annually, for a total period of five years, upon remittance of the current annual fee for membership. The City Council previously approved a Purchasing Cooperative Agreement with the State of Arizona in February of 1976. Participating in the Arizona State Purchasing Cooperative Program allows Glendale to make purchases based on the combined volume of all the members of the cooperative, rather than just the city's individual need. This method of consolidating the combined purchasing power of the membership produces the lowest possible volume prices and make for the most effective use of available funding. The recommendation was to waive reading beyond the title and adopt a resolution authorizing the entering into of the Arizona State Purchasing Cooperative Agreement with the State of Arizona Enterprise Procurement Services and make payment of the annual membership agreement fee. 5 Resolution No. 3898 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 THE ARIZONA STATE PURCHASING COOPERATIVE AGREEMENT WITH THE STATE OF ARIZONA, ENTERPRISE PROCUREMENT SERVICES, FOR FISCAL YEAR 2006. It was moved by Eggleston and seconded by Goulet, to approve the recommended actions on Consent Agenda Item Nos. 1 through 7, including the approval and adoption of Resolution No. 3898 New Series, and to forward Liquor License Application No. 3-1015 for Grand Dragon, and Special Event Liquor License Applications for Catholic Singles Ministry, Golden Wheel, Our Lady of Perpetual Help School, and Thunderbird Rugby Football Club, to the State of Arizona Department of Liquor Licenses and Control, with the recommendation for approval. The motion carried unanimously. BIDS AND CONTRACTS 8. AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT — CHOLLA WATER TREATMENT PLANT IMPROVEMENTS Mr. Roger Bailey, Utilities Director presented this item. This is a request for the City Council to approve Contract Amendment Number 1 to the professional services agreement with Malcolm Pirnie, Inc. for the Cholla Water Treatment Plant Filter Retrofit and Enhancement Project. Amendment No. 1 includes Phase Ill professional construction-related services. The Cholla Water Treatment Plant was originally constructed in 1978 and includes four filters. This is the third and last phase of the project and will include improvements to the four existing filters, the addition of two new filters to provide additional operational flexibility, and other treatment process enhancements to improve the plant's ability to effectively process the raw water supply. The improvements will allow for continued plant compliance with changes in State and Federal drinking water standards. This is the final phase of the project and includes construction project administration. Professional services for this project were organized into three phases. On March 22, 2005, the Council approved a professional services agreement with Malcolm Pirnie, Inc. for Phase II: Detailed Design. On April 27, 2004, the Council approved a professional services agreement with Malcolm Pirnie, Inc. for Phase I: Testing, Evaluation and Preliminary Design. The project will improve the effectiveness of the Cholla Water Treatment Plant (CWTP) and will allow the plant to remain in compliance with Federal and State regulations. 6 As part of the public information component to keep citizens informed, a memo explaining the proposed improvements to the CWTP was delivered to each resident on 49th Drive and 47th Avenue, up to Shangri La on the South, as well as Shangri La between 47th and 49th Avenues on September 29, 2005. The memo also invited those neighbors to attend a tour of the facility scheduled on Saturday, October 8, 2005. The cost for Malcolm Pirnie to perform Phase III of the Cholla Water Treatment Plant Filter Retrofit and Enhancement Project will not exceed $1,713,358. Funds for this amendment are available in Cholla WTP Process Improvements, Account No. 83- 9286-8330. Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total X X $1,713,358 Account Name, Fund, Account and Line Item Number Cholla WTP Process Improvements, Account No. 83-9286-8330 - $1,713,358 The recommendation was to approve contract Amendment No. 1 to the professional services agreement with Malcolm Pirnie, Inc., for the Cholla Water Treatment Plant in the amount of$1,713,358. It was moved by Eggleston, and seconded by Frate, to approve contract Amendment No. 1 to the professional services agreement with Malcolm Pirnie, Inc., for the Cholla Water Treatment Plant in the amount of $1,713,358. The motion carried unanimously. 9. AWARD OF CONSTRUCTION CONTRACT - CHOLLA WATER TREATMENT PLANT IMPROVEMENTS Mr. Roger Bailey, Utilities Director presented this item. This is a request for the City Council to approve a Construction Manager at Risk (CMAR) contract with Hunter Contracting Company for construction of the Cholla Water Treatment Plant Filter Retrofit and Enhancement Project. The Cholla Water Treatment Plant was originally constructed in 1978 and includes four filters. This project will improve the four existing filters, add two new filters to provide additional operational flexibility, and include other treatment process enhancements to improve the plant's ability to effectively process the raw water supply. Design for the project has been completed, and Hunter Contracting Company has established a guaranteed maximum price (GMP) for construction. Hunter's GMP was reviewed and approved, with staff input, by the project's engineering design consultant, Malcolm Pirnie. 7 On March 22, 2005, the Council approved a professional services agreement with Malcolm Pirnie, Inc. for detailed design services for the project. On April 27, 2004, the Council approved a professional services agreement with Malcolm Pirnie, Inc. for testing, evaluation and preliminary design services for the Cholla Water Treatment Plant Filter Retrofit and Enhancement project. Also, on April 27, 2004, the Council awarded Hunter Contracting Company a CMAR contract for the design support services. The improvements will allow for continued plant compliance with changes in State and Federal drinking water standards. As part of the public information component to keep citizens informed, a memo explaining the proposed improvements to the CWTP was delivered to each resident on 49m Drive and 47th Avenue, up to Shangri La on the South, as well as Shangri La between 47th and 49`h Avenues on September 29, 2005. The memo also invited those neighbors to attend a tour of the facility scheduled on Saturday, October 8, 2005. The guaranteed maximum price for Hunter Contracting Company's CMAR contract for construction of the plant improvements designed is $12,653,585. Funds are available for this project in the Fiscal Year 2005-06 and Fiscal Year 2006-07 Capital Improvement Program in Cholla Water Plant Process Improvements. To cover the cost for this project, $1,400,000 will be transferred from Cholla WTP Expansion; $500,000 from Water System Security; $429,000 from Regional GAC Plant, Account; and $271,000 from Zone 4 Res. & Booster Station, to Cholla Water Plant Process Improvements. Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total X X $12,653,585 Account Name, Fund, Account and Line Item Number FY 05-06: Cholla Water Plant Process Improvements, Account No. 83-9286-8300 - $9,160,795 FY 06-07: Cholla Water Plant Process Improvements, Account No. 83-9286-8300 — $3,492,790 The recommendation was to approve the Construction Manager at Risk construction contract with Hunter Contracting Company in an amount not to exceed $12,653,585. It was moved by Martinez, and seconded by Frate, to approve the Construction Manager at Risk construction contract with Hunter Contracting Company in an amount not to exceed $12,653,585. The motion carried unanimously. 8 10. CONTRACT AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT FOR 751" AVENUE AND CAMELBACK ROAD SEWER REHABILITATION PROJECT Mr. Roger Bailey, Utilities Director presented this item. This is a request for the City Council to approve Contract Amendment No. 1 to the professional services agreement with Camp Dresser and McKee Inc. (CDM) for the 75th Avenue and Camelback Road Sewer Rehabilitation Project. The amendment will provide funds to complete the sewer design and will provide for construction administration during the sewer rehabilitation. Approval of this contract amendment will assist in achieving the council goal of maintaining quality city infrastructure. The Flood Control District of Maricopa County is designing a flood control channel along the Grand Canal near Camelback Road, called the Bethany Home Outfall Channel (BHOC). The future construction of the BHOC will require the relocation of the existing 48-inch sewer line in Camelback Road near 75th Avenue. During the field investigations for design, it was discovered that the existing 30-year old sewer structures need rehabilitation to accept the relocation of the 48-inch sewer line, resulting in the need for additional design services. CDM was selected as the next design consultant from the Engineering Department's pre-approved list of qualified consultants for sewer design. This amendment No.1 will finish that design and provide for construction administration services. Rehabilitation and relocation of the existing sewer line will allow continuation of the current level of service to Glendale residents. Because the field investigations detected the wear on the existing concrete sewer structures, the rehabilitation design will renew the service life of the sewer system in this immediate area for another thirty years. Currently, 75 percent of the daily sewage flow in Glendale goes through this 48- inch pipeline. The majority of residents will benefit from the new construction provided in the rehabilitation project. This is the design phase of the rehabilitation project; however, notification of the project and traffic control information will be provided to the affected neighbors and general public before the construction phase begins. Funds are available for this project in Camelback Sewer Rehab, Account No. 84- 9228-8300. 9 Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total X X $410,759 Account Name, Fund, Account and Line Item Number: Camelback Sewer Rehab, 84-9228-8300 - $410,759 The recommendation was to approve Contract Amendment No. 1 to Professional Services Agreement for 75th Avenue and Camelback Road Sewer Rehabilitation Project with Camp Dresser and McKee Inc. It was moved by Clark, and seconded by Lieberman, to approve Contract Amendment No. 1 to Professional Services Agreement for 75th Avenue and Camelback Road Sewer Rehabilitation Project with Camp Dresser and McKee Inc. The motion carried unanimously. ORDINANCES 11. SALT RIVER PROJECT EASEMENTS Mr. Larry Broyles, City Engineer presented this item. This is a request for the City Council to adopt an ordinance authorizing the City Manager to execute the following easements in favor of Salt River Project (SRP): (1) an irrigation easement along the west side of 75th Avenue, north of Bethany Home Road; (2) an irrigation easement along the south side of Glendale Avenue and across 79th Avenue; (3) a power distribution easement at the southeast corner of 79th and Orangewood Avenues; and (4) an irrigation easement along the north side of Bethany Home Road, east of 83rd Avenue. As part of the improvements along Glendale Avenue, the city requested SRP to relocate their existing pipeline and irrigation turnout structure along the south side of Glendale Avenue and across 79th Avenue. The easement will enable SRP to relocate its existing system to allow for improvements along Glendale Avenue as programmed in the Glendale Onboard (GO)Transportation Program. As part of the Bethany Home Road Improvement project between 75th to 83rd Avenues, the city is realigning Bethany Home Road southwesterly from approximately 79th to 83rd Avenues. As part of the project, SRP will need to relocate two of its 24-inch irrigation lines; one to the north side of Bethany Home Road, east of 83rd Avenue within city right-of-way; the other along the west side of 75th Avenue, north of Bethany Home Road. 10 The Glendale Elementary School District is constructing a new elementary school on the southwest corner of 77th and Orangewood Avenues. To deliver electrical power to the school, SRP has requested a power distribution easement across city property on the southwest corner of 79th and Orangewood Avenues. The easement will not interfere with the city's development of this property into a park. These easements are necessary to formally acknowledge SRP's relocated facilities and existing land rights. The recommendation was to waive reading beyond the title and adopt an ordinance authorizing the City Manager to execute the following easements in favor of Salt River Project: (1) an irrigation easement along the west side of 75th Avenue, north of Bethany Home Road; (2) an irrigation easement along the south side of Glendale Avenue and across 79th Avenue; (3) a power distribution easement at the southeast corner of 79th and Orangewood avenues; and (4) an irrigation easement along the north side of Bethany Home Road, east of 83`d Avenue. Ordinance No. 2466 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE FOLLOWING EASEMENTS IN FAVOR OF SALT RIVER PROJECT: (1) AN IRRIGATION EASEMENT ALONG THE WEST SIDE OF 75TH AVENUE, NORTH OF BETHANY HOME ROAD; (2) AN IRRIGATION EASEMENT ALONG THE SOUTH SIDE OF GLENDALE AVENUE AND ACROSS 79TH AVENUE; (3) A POWER DISTRIBUTION EASEMENT AT THE SOUTHEAST CORNER OF 79TH AND ORANGEWOOD AVENUES; AND (4) AN IRRIGATION EASEMENT ALONG THE NORTH SIDE OF BETHANY HOME ROAD, EAST OF 83RD AVENUE. It was moved by Goulet, and seconded by Frate, to approve Ordinance No. 2466 New Series. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, Frate, and Scruggs. Members voting "nay": none. 12. ANNEXATION AREA NO. 158 ORDINANCE Mr. Jon Froke, AICP, Planning Director, presented this item. This is a request for the City Council to adopt an annexation ordinance for Annexation Area No. 158, which consists of 105 acres at the southeast corner of Loop 303 and Peoria Avenue. The city's General Plan includes specific goals addressing the need for growth management. These goals include promotion of sound growth management methods and managing growth to achieve reasonable, responsible urban development. Annexation is a tool that can be used by the city to direct and manage growth. The 11 Loop 303 corridor, and this specific location, is identified as a major growth area in the Glendale General Plan. The 105-acre site is located at the southeast corner of Loop 303 and Peoria Avenue and abuts the Glendale strip annexation boundary along Peoria Avenue. This is the first Loop 303 location to be annexed into Glendale. The property owners of the three parcels included in this annexation area are requesting annexation. The initial City of Glendale zoning for the properties will be C-2 (General Commercial) and M-1 (Light Industrial). Utilities will be provided to this site by private utilities already serving this area. The city will be responsible for providing police, fire and emergency response services as well as sanitation services when development occurs on the site. The Council conducted a public hearing on July 26, 2005 on the blank annexation petition for Annexation Area No. 158 as required by State Statute. The annexation of this site would require that any future development of this area meet the Glendale General Plan requirements, as well as all other development standards for the City of Glendale. This parcel is the first of many parcels that will be developed for non-residential uses along the Loop 303 corridor. The city will benefit from additional employment opportunities as well as from future sales tax revenue for any retail development that might occur in the future. The recommendation was to waive reading beyond the title and adopt an ordinance increasing the Glendale city limits, as defined in the annexation ordinance for Annexation Area Number 158. Councilmember Lieberman pointed out the city will not be creating a county island because the property abuts the city's 10-foot strip annexation. Mr. Froke agreed, stating the city is actually reducing the size of a county island. Ordinance No. 2467 New Series was read by number and title only, it being AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, EXTENDING AND INCREASING THE CORPORATE LIMITS OF THE CITY OF GLENDALE, MARICOPA COUNTY, STATE OF ARIZONA, PURSUANT TO THE PROVISIONS OF TITLE 9, CHAPTER 4, SECTION 9-471, ARIZONA REVISED STATUTES AND AMENDMENTS THERETO, BY ANNEXING THERTO CERTAIN TERRITORY CONTIGUOUS TO THE EXISTING CITY LIMITS OF THE CITY OF GLENDALE TO BE KNOWN AS ANNEXATION AREA NO. 158. It was moved by Frate, and seconded by Martinez, to approve Ordinance No. 2467 New Series. Motion carried on a roll call vote, with the following Councilmembers voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, Frate, and Scruggs. Members voting "nay": none. 12 NEW BUSINESS Mr. Beasley addressed Items 13, 14, and 15 together. He explained staff is requesting contingency appropriation authority for infrastructure improvements at Zanjero, noting the city will own the improvements. He said $1.5 million will be generated annually within the four-year period and the additional infrastructure will allow that part of the city to grow. He stated Cabela's allows Glendale to create one of the world's best destination outdoor sports venues, noting it will generate four million visitors per year and generate $1.4 million for the city. He explained the city will own the property and lease it back to Cabella's. He explained staff is requesting authority to move expeditiously because the agreements are based on contractual obligations. 13. REQUEST FOR TRANSFER OF CONTINGENCY APPROPRIATION AUTHORITY FOR INFRASTRUCTURE IMPROVEMENTS AT ZANJERO Mr. Art Lynch, Deputy City Manager, presented this item. This is a request for the City Council to authorize a transfer of Fiscal Year 2005- 06 contingency appropriation authority from various capital construction funds for $6.7 million to be used for infrastructure improvements within the Zanjero Planned Area Development. The City of Glendale will be reimbursed for these expenditures through the sale of bonds. This project will enhance the quality of life for Glendale residents, while promoting economic development activity at Zanjero. The PAD will provide a number of needed amenities and businesses for Glendale residents and will promote a positive image of Glendale to both residents and tourists. In July of 2005, the City Council approved a development agreement with Zanjero. The Zanjero Planned Area Development (PAD) consists of 160 acres situated with Glendale Avenue to the south, 91st Avenue to the east, and 95th Avenue to the west and is immediately north of Westgate. The PAD includes a mixture of employment, retail and residential uses. The Cabela's retail destination development will be located within the PAD, at the northeast corner of Glendale Avenue and 95th Avenue. The City of Glendale will contribute an amount not to exceed $6.7 million in infrastructure improvements at Zanjero. The City Council approved a development agreement with Zanjero on July 26, 2005. There are a number of benefits to having the city of Glendale provide infrastructure improvements at Zanjero. The roadway improvements will provide backbone infrastructure, promote future economic development activity, and will provide connectivity between Zanjero and the Westgate development. 13 This transaction will require the transfer of Fiscal Year 2005-06 contingency appropriation authority in the amount of $6.7 million from various capital construction funds. The funds for the acquisition of land and the development of public amenities and infrastructure will be proceeds from a bond sale that will be completed by the end of Fiscal Year 2005-06. Any cash disbursements that occur prior to the bond sale will be covered by the General Fund. Once the bond sale is completed, the General Fund will be reimbursed. This arrangement is the same as that used for expenses related to HOME and CDBG projects that occur prior to the actual receipt from the federal government of the HOME and CDBG funds. Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total X X X $6,700,000 Account Name, Fund, Account and Line Item Number Transfer of contingency appropriation authority in the amount of$6,700,000 from various capital construction funds to account no. 95-8221, Zanjero Improvements. The recommendation was to authorize a transfer of Fiscal Year 2005-06 contingency appropriation authority from various capital construction funds for $6.7 million to be used for infrastructure improvements within the Zanjero Planned Area Development. Vice Mayor Eggleston asked if the city will purchase the land for the infrastructure improvements. Mr. Lynch responded yes, explaining the land, water and sewer improvements, streets, lighting, sidewalks, right-of-way, and landscaping are all included in the $6.7 million cost. Councilmember Clark asked when the bonds will be sold. She also asked if additional costs incurred when issuing the bonds are included in the $6.7 million. Mr. Lynch said they anticipate issuing the bonds in January or February. He stated the $6.7 million is for hard costs and, while they could include financing costs, other soft costs would be excluded. Councilmember Clark asked what they can expect transaction costs for the bond sale to be. Mr. Lynch said about two percent of the total transaction or about $100,000 to $120,000. He noted revenues generated will more than exceed what they estimate the bond payment to be. Councilmember Clark asked if transaction fees are paid back when the contingency is repaid. Mr. Lynch answered yes, pointing out $6.7 million is the cap and any costs above that are the responsibility of the developer. 14 Councilmember Martinez noted during staff's financial update at last week's Council workshop it was mentioned that the city's costs are reduced because of its high rating from the bond agencies. Mr. Lynch agreed. It was moved by Clark, and seconded by Lieberman, to authorize a transfer of Fiscal Year 2005-06 contingency appropriation authority from various capital construction funds for $6.7 million to be used for infrastructure improvements within the Zanjero Planned Area Development. The motion carried unanimously. 14. REQUEST FOR TRANSFER OF CONTINGENCY APPROPRIATION AUTHORITY FOR THE CABELA'S DEVELOPMENT Mr. Art Lynch, Deputy City Manager, presented this item. This is a request for the City Council to authorize a transfer of Fiscal Year 2005- 06 contingency appropriation authority from various capital construction funds for $10 million for the purchase of 29 acres of land and infrastructure improvements. The City of Glendale will be reimbursed for these expenditures through the sale of bonds. This project will enhance the quality of life for Glendale residents while promoting economic development at Zanjero. The development of an innovative destination retail attraction promotes a positive image of Glendale to residents and tourists. On July 26, 2005 the City Council approved a development agreement with Cabela's. Cabela's 165,000 square foot retail facility will be located within the Zanjero Planned Area Development. This development will enhance the current business environment and will benefit Glendale citizens and visitors alike. The City of Glendale will contribute an amount not to exceed $10 million towards the purchase of approximately 29 acres of land and infrastructure improvements. Cabela's will lease the land from the City of Glendale for its development. The City Council approved a development agreement with Cabela's on July 26, 2005. The development of a destination retail attraction will enhance the current business environment and creates a unique amenity in Glendale. This development will be the first retail development at Zanjero and will set the standard for all future development in the area. This transaction will require the transfer of Fiscal Year 2005-06 contingency appropriation authority in the amount of $10 million from various capital construction funds. The funds for the acquisition of land and infrastructure will be proceeds from a bond sale that will be completed by the end of Fiscal Year 2005-06. Any cash 15 disbursements that occur prior to the bond sale will be covered by the General Fund. Once the bond sale is completed, the General Fund will be reimbursed. This arrangement is the same as that used for expenses related to HOME and CDBG projects that occur prior to the actual receipt from the federal government of the HOME and CDBG funds. Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total X X X $10,000,000 Account Name, Fund, Account and Line Item Number: Transfer of contingency appropriation authority in the amount of$10,000,000 from various capital construction funds to account no. 95-8220, Cabela's Retail. The recommendation was to authorize a transfer of Fiscal Year 2005-06 contingency appropriation authority from various capital construction funds for $10 million for the purchase of 29 acres of land and infrastructure improvements. It was moved by Lieberman, and seconded by Frate, to authorize a transfer of Fiscal Year 2005-06 contingency appropriation authority from various capital construction funds for $10 million for the purchase of 29 acres of land and infrastructure improvements. The motion carried unanimously. 15. CITY MANAGER'S CONTRACT AUTHORITY REQUEST Mr. Art Lynch, Deputy City Manager, presented this item. This is a request for the City Council to authorize the City Manager to enter into design and construction contracts and/or agreements for the Cabela's and Zanjero Developments. This request would provide the City Manager with the authority to enter into and administer contracts not to exceed the development agreements' stipulated amounts of $10 million for Cabela's and $6.7 million for Zanjero. By providing the City Manager with the authority to enter into contracts and/or agreements, the city will be able to accelerate the design and construction program progress to meet our responsibilities as outlined in the Development Agreements with both Zanjero Development and Cabela's Retail, Inc. To meet our obligations, construction has to begin by the end of October 2005. On July 26, 2005, the Council approved development agreements with Citation Land Company, LLC (Zanjero Development) and Cabela's Retail, Inc. (Cabela's). Zanjero Development will be improving an area bounded by 91st Avenue on the east, 95th Avenue on the west, Glendale Avenue on the south and the Orangewood Avenue alignment on the north. Cabela's will develop a 165,000 square foot retail center on approximately 28.6 acres in the Zanjero Development. 16 Under the terms of the Zanjero Development agreement, the city has responsibility for the design and construction of the infrastructure (water, sewer, streets, lighting, sidewalks, and right-of-way landscaping.) Under the terms of the Cabela's agreement, the city will construct the retail center's parking lots and other associated on-site features. The Zanjero agreement requires completion of the infrastructure in two phases, with the schedule beginning from the date of recording, which was August 26, 2005. Phase one is to be completed within 120 days of recording and phase two is to be completed within 240 days of recording. The site work required by Cabela's agreement is to be completed by June of 2006. By allowing the City Manager to sign contracts, both the program manager, who oversees the completion of the design, construction budgets and schedules; and a Construction Manager at Risk (CMAR) will be able to begin work no later than October 15, 2005. The Council approved both the Zanjero Development and Cabela's agreements on July 26, 2005. The Zanjero Development agreement was recorded August 26, 2005 and the Cabela's agreement was recorded September 23, 2005. By allowing the City Manager the authority to enter into contracts, the Council has adopted the use of an efficient business practice designed to save time in the design and development stages of completion of the infrastructure improvements. The value of time saved is reflected in the lower costs for construction products. The current costs for building materials and equipment is not likely to stay stagnant resulting in consistently escalating costs for the project. The recommendation was to authorize the City Manager to enter into design and construction contracts and/or agreements for the Cabela's and Zanjero developments not to exceed the respective amounts of$10 million and $6.7 million. It was moved by Frate, and seconded by Clark, to authorize the City Manager to enter into design and construction contracts and/or agreements for the Cabela's and Zanjero developments not to exceed the respective amounts of $10 million and $6.7 million. The motion carried unanimously. REQUEST FOR FUTURE WORKSHOP AND EXECUTIVE SESSION It was moved by Eggleston, 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, October 18, 2005, to be followed by an Executive Session pursuant to A.R.S. 38- 431.03. The motion carried unanimously. 17 CITIZEN COMMENTS No comments were made. COUNCIL COMMENTS AND SUGGESTIONS Councilmember Clark thanked neighborhoods and, in particular, Neighborhood Watch Captains in her district for their participation in the various GAIN events on October 1St. She thanked the Spectrum Group for the gift bag she received, explaining Spectrum Group will manage and solicit additional events for the Cardinals Stadium. Councilmember Goulet thanked the Fire Department and Captain Benson for putting on an outstanding Fire Parade on October 1St. He also thanked everyone for attending the parade and GAIN Night events. Councilmember Lieberman noted that there were 74 participants in the parade. He thanked everyone who participated in the day's events. He encouraged everyone to come to the Veteran's Day Parade. Vice Mayor Eggleston pointed out that the Council passed a $12 million project for the Cholla Water Treatment Plant, stating it is a much needed addition to guarantee the city's future water supply. He thanked residents who came to the meeting last Saturday to hear more about the plant and staff for clearly explaining what residents can expect. Councilmember Martinez thanked his Block Watch Captains and everyone else who worked to host GAIN parties. Councilmember Frate thanked the Fire Department for the parade and the high school bands who participated. He also thanked participants in the Sahuaro District for GAIN Night. He said Operation Illumination took place last Friday, explaining the Transportation Department, the Police Department and 31 volunteers drove every street in the City of Glendale, inspected 18,000 lights and replaced over 600 lights that were burnt out or malfunctioning. He thanked Troop 192 and the Cactus High School Government class for coming to the meeting. He urged everyone to continue to watch children around water. Mayor Scruggs stated she had the honor of being invited to a special celebration at Legend Springs Elementary School, noting their 4th grade class came in second in the State in AIMS Test reading scores. She said the 4th grade class also represents the first class that will have gone from Kindergarten through 8th grade at Legend Springs Elementary School. She commented on the significance of the items approved by the Council during the meeting, stating they expanded the size of the city through Item 12 and provided for a tremendous amount of development in the western part of the city through Items 13, 14, and 15. 18 ADJOURNMENT There being no further business, the meeting was adjourned at 7:50 p.m. Pame - Hanna - City Clerk 19