HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 6/9/2009 0i
GLENE
MINUTES OF THE
GLENDALE CITY COUNCIL MEETING
Council Chambers
5850 West Glendale Avenue
June 09, 2009
7:00 p.m.
The meeting was called to order by Mayor Elaine M. Scruggs, with Vice Mayor Manuel
D. Martinez and the following Councilmembers present: Joyce V. Clark, Steven E. Frate, David
M. Goulet, Yvonne J. Knaack, and H. Philip Lieberman.
Also present were Ed Beasley, City Manager, Pam Kavanaugh, Assistant City Manager;
Craig Tindall, City Attorney; and Pamela Hanna, City Clerk.
COMPLIANCE WITH ARTICLE VII, SECTION 6(c) OF THE GLENDALE CHARTER
A statement was filed by the City Clerk that the 9 resolutions 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 26, 2009 CITY COUNCIL MEETING
It was moved by Goulet, and seconded by Clark, to dispense with the reading of the
minutes of the May 26, 2009 Regular City Council meeting, as each member of the Council had
been provided copies in advance, and approve them as written. The motion carried unanimously.
CONSENT AGENDA
Mr. Ed Beasley, City Manager, read agenda item numbers 1 through 9 and Ms. Pamela
Hanna, City Clerk, read consent agenda resolution item numbers 10 through 16 by number and
title.
Councilmember Clark requested that item #9 be heard separately
1. LIOUOR LICENSE NO. 3-1223, GLENFAIR LANES
This is a request for City Council to approve a person-to-person transfer Series 6 (Bar — All
Liquor) license. Glenfair Lanes is located at 6110 North 59` Avenue. The Arizona Department
of Liquor Licenses and Control application (No. 06070458) was submitted by Jake Phil Lucero.
The location of the establishment is 6110 North 59th Avenue and is located within the Ocotillo
District. The property is zoned C-2 (General Commercial). The population density within a
one-mile radius is 24,369. The establishment is over 300 feet from any church or school. This
Series 6 is a person-to-person transfer license operating with an interim permit, therefore, the
approval of this license will not increase the number of liquor licenses in the area. The number
of liquor licenses within a one-mile radius is as listed below.
Series Type Quantity
06 Bar—All Liquor 6
07 Bar—Beer and Wine 4
09 Liquor Store—All Liquor 6
10 Liquor Store—Beer and Wine 13
12 Restaurant 8
14 Private Club 3
Total 40
The Maricopa County Health Department and the City of Glendale Planning, Police, and Fire
Departments have reviewed the application and determined that it meets all technical
requirements.
No public protests were received during the 20-day posting period.
Based on information provided under the background, it is staffs recommendation to forward
this application to the Arizona Department of Liquor Licenses and Control with a
recommendation of approval.
2. LIQUOR LICENSE NO. 3-1235, BLACK ANGUS STEAKHOUSE
This is a request for City Council to approve a new non-transferable Series 12 (Restaurant)
license. Black Angus Steakhouse is located at 7606 West Bell Road. The Arizona Department
of Liquor Licenses and Control application (No. 12077979) was submitted by Amy Schwartz-
Cuatto.
The location of the establishment is 7606 West Bell Road, and is located within the Sahuaro
District. The property is zoned PAD (Planned Area Development). The population density
within a one-mile radius is 10,677. This Series 12 is a new license, operating with an interim
permit, therefore, the approval of this license will not increase the number of liquor licenses in
the area. The number of liquor licenses within a one-mile radius is as listed below.
Series Type Quantity
03 Microbrewery 1
05 Government 1
06 Bar—All Liquor 3
09 Liquor Store—All Liquor 3
10 Liquor Store—Beer and Wine 6
12 Restaurant 34
Total 48
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The Maricopa County Health Department and the City of Glendale Planning, Police, and Fire
Departments have reviewed the application and determined that it meets all technical
requirements.
No public protests were received during the 20-day posting period.
Based on information provided under the background, it is staffs recommendation to forward
this application to the Arizona Department of Liquor Licenses and Control with a
recommendation of approval.
3. LIQUOR LICENSE NO. 3-1236, STARDUST
This is a request for City Council to approve a person-to-person transfer Series 6 (Bar — All
Liquor) license. Stardust is located at 4346 West Olive Avenue. The Arizona Department of
Liquor Licenses and Control application (No. 06070212) was submitted by Carl Hilton Jones.
The location of the establishment is 4346 West Olive Avenue and is located within the Cactus
District. The property is zoned C-2 (General Commercial). The population density within a
one-mile radius is 21,402. The establishment is over 300 feet from any church or school. This
Series 6 is a person-to-person transfer license operating with an interim permit, therefore, the
approval of this license will not increase the number of liquor licenses in the area. The number
of liquor licenses within a one-mile radius is as listed below.
Series Type Quantity
06 Bar—All Liquor 8
07 Bar—Beer and Wine 3
09 Liquor Store—All Liquor 4
10 Liquor Store—Beer and Wine 6
12 Restaurant 9
Total 30
The Maricopa County Health Department and the City of Glendale Planning, Police, and Fire
Departments have reviewed the application and determined that it meets all technical
requirements.
No public protests were received during the 20-day posting period.
Based on information provided under the background, it is staff's recommendation to forward
this application to the Arizona Department of Liquor Licenses and Control with a
recommendation of approval.
4. LIQUOR LICENSE NO. 3-1237, CAFE CHINA
This is a request for City Council to approve a person and location transferable Series 7 (Bar—
Beer and Wine) license. Café China is located at 5830 West Thunderbird Road, Suite B-1. The
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Arizona Department of Liquor Licenses and Control application (No. 07070024) was submitted
by Kung Chi Shek.
The location of the establishment is 5830 West Thunderbird Road, Suite B-1, and is located
within the Sahuaro District. The property is zoned C-2 (General Commercial). The population
density within a one-mile radius is 16,887. The establishment is over 300 feet from any church
or school. This Series 7 is a person and location transferable license, not operating with an
interim permit, therefore, the approval of this license will increase the number of liquor licenses
in the area by one. The number of liquor licenses within a one-mile radius is as listed below.
Series Type Quantity
06 Bar—All Liquor 2
07 Bar—Beer and Wine 4
09 Liquor Store—All Liquor 4
10 Liquor Store—Beer and Wine 2
12 Restaurant 4
Total 16
The Maricopa County Health Department and the City of Glendale Planning, Police, and Fire
Departments have reviewed the application and determined that it meets all technical
requirements.
No public protests were received during the 20-day posting period.
Based on information provided under the background, it is staffs recommendation to forward
this application to the Arizona Department of Liquor Licenses and Control with a
recommendation of approval.
5. LIQUOR LICENSE NO. 3-1238, GLEN ORANGE MART
This is a request for City Council to approve a new, non-transferable Series 10 (Liquor Store—
Beer and Wine) license. Glen Orange Mart is located at 7536 West Glendale Avenue. The
Arizona Department of Liquor Licenses and Control application (No. 10075770) was submitted
by Lauren Kay Merrett.
The location of the establishment is 7536 West Glendale Avenue, and is located within the
Yucca District. The property is zoned C-2 (General Commercial). The population density
within a one-mile radius is 15,386. The establishment is over 300 feet from any church or
school. This Series 10 is a new license operating with an interim permit; therefore, the approval
of this license will not increase the number of liquor licenses in the area. The number of liquor
licenses within a one-mile radius is as listed below.
Series Type Quantity
06 Bar—All Liquor 2
09 Liquor Store—All Liquor 1
10 Liquor Store—Beer and Wine 3
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12 Restaurant 1
Total 7
The Maricopa County Health Department and the City of Glendale Planning, Police, and Fire
Departments have reviewed the application and determined that it meets all technical
requirements.
No public protests were received during the 20-day posting period.
Based on information provided under the background, it is staff's recommendation to forward
this application to the Arizona Department of Liquor Licenses and Control with a
recommendation of approval.
6. PROFESSIONAL SERVICES AGREEMENT WITH BRYAN A. STIRRAT &
ASSOCIATES — LANDFILL GENERAL ENGINEERING SERVICES
This is a request for City Council to approve a professional services agreement with Bryan A.
Stirrat&Associates (BAS) for engineering services on projects specifically related to the City of
Glendale Landfill.
The request supports the Council goal of a city with high quality services to citizens by providing
engineering services to assist in landfill operations and development in an environmentally sound
and cost effective manner.
The landfill uses professional engineering services to provide routine and special project support
on an on-call basis for landfill development and operations. These services include general
engineering support, design services, mapping and survey services, environmental compliance
support, construction administration services, landfill development planning and permit
preparation, and regulatory agency interaction.
A Request for Qualifications (RFQ) to provide general engineering services was sent out on
March 19, 2009. Five consultants submitted a Statement of Qualifications (SO(?) in response to
the RFQ. An evaluation panel consisting of representatives from the Field Operations
Department and Engineering Department reviewed the proposals and interviewed three of the
five consultants. The panel determined that BAS was the strongest candidate and the best fit for
the city, specifically in relation to their field and technical expertise to handle regulatory
compliance issues, air quality issues, and environmental monitoring.
The term of the agreement with BAS will be for an initial period of three years, with two, one-
year extension options. The annual on-call engineering services outlined in this agreement will
be limited to a maximum fee of$120,000 per fiscal year.
In June 2008, Council approved a request to increase the General Engineering Services contract
for the Landfill Master Plan update. The request included a contract amendment, which adjusted
the contract expiration date to June 30, 2009.
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This agreement will provide access to external engineering expertise to help maintain efficient
operations and regulatory compliance at the landfill.
Funds are available in the FY2009-10 operating budget of the Field Operations Department.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X $120,000
Account Name. Fund,Account and Line Item Number:
Landfill, Account No. 2440-17710-515000
The recommendation is to authorize the City Manager to enter into a professional services
agreement with Bryan A. Stirrat & Associates in an amount not to exceed $120,000 for general
engineering services on projects specifically related to the City of Glendale Landfill; and
authorize the City Manager to renew the agreement, at their discretion, for up to two one-year
terms, subject to budget appropriation.
7. AWARD OF CONTRACT: RUBBERIZED ASPHALT OVERLAY PROGRAM
This is a request for City Council to approve a contract with Sunland Asphalt for the construction
to be completed as part of pavement management program, Project 089005. Eight responses
were received and Sunland Asphalt was the lowest responsive bidder.
The award of this contract supports the Council goal of a city with high quality services for
citizens through the reinvestment in the City's infrastructure.
The work to be completed will be rubberized asphalt overlay. The award of this contract
provides approximately 12.75 miles of reconditioned arterial roadways in the city. The street
segments that will be completed as part of this contract are the following:
• 59'h Avenue from Ocotillo Avenue to Glendale Avenue
• 67th Avenue from Camelback Road to Northern Avenue
• 67th Avenue from Peoria Avenue to Greenway Road
• 67th Avenue from Bell Road to Loop 101 Freeway
• 75th Avenue from Bethany Home Road to Glendale Avenue
• 83`d Avenue from Camelback Road to Bethany Home Road
• Olive Avenue from 63`d Avenue to 67th Avenue
• Peoria Avenue from 43`d Avenue to 59th Avenue
Each year Council has approved rubberized asphalt overlay projects to preserve the condition of
the pavement on arterial, collector and residential streets. In FY 07-08, Council authorized $11.5
million in asphalt overlay work to be done; this work was completed in November 2008 and
consisted of
• 51st Avenue from Camelback Road to Orangewood Avenue.
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• 59th Avenue from the Loop 101 to north of Deer Valley Road.
• 59th Avenue from Olive Avenue to Brown Avenue.
• 67th Avenue from the ramp apron north of Northern to Olive Avenue.
• 67th Avenue from Loop 101 to Deer Valley Road.
• 75th Avenue from Camelback to Bethany Home Road.
• Glendale Avenue from 67th Avenue to 91't Avenue.
• Olive Avenue from 43rd Avenue to 63rd Avenue.
Rubberized asphalt overlays mitigate traffic noise, provide a smooth, safe surface for motorists,
and extend the life of the roadway.
Funds for this project are available in the FY 2009 capital improvement plan for the Glendale
Onboard Transportation Program.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X X $7,377,566.73
Account Name. Fund,Account and Line Item Number:
Arterial Overlay, Account Number, 2210-65082-551200 $7,377,566.73
The recommendation is to award the contract to Sunland Asphalt in the amount of$7,377,566.73
for the construction of the Rubberized Asphalt Overlay Program, Project 089005.
8. EXTENSION OF BID FOR POLICE UNIFORMS AND EQUIPMENT
This is a request for City Council to authorize the City Manager to extend the bid with West
Valley Uniforms for one additional year.
This request supports the council strategic goal of one community focused on public safety for
citizens and visitors by establishing a professional standard of appearance and continuity of the
equipment supplied.
In 2004, the Police Department entered into an agreement with West Valley Uniforms to provide
officers with uniforms and equipment which met the policy and standards of the department for
functionality, dress and appearance. The equipment and clothing outfits new officers and
maintains current uniform standards for existing officers.
The current bid expires on June 30, 2009. The requested extension would maintain the supply of
clothing and equipment for officers while the current specifications are reviewed and modified to
develop a bid.
Funding is available in the Police Department's FY 2009-10 operating budget.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X $140,000
Account Name, Fund,Account and Line Item Number:
Police Department's Physical Management Account, No. 1000-12210-523800
The recommendation is to authorize the City Manager to extend the bid with West Valley
Uniforms for one additional year.
CONSENT RESOLUTIONS
10. INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF AVONDALE FOR
USE OF THE GLENDALE SMARTZONE INFRASTRUCTURE SYSTEM
This is a request for City Council to adopt a resolution authorizing the City Manager to enter into
an Intergovernmental Agreement with the City of Avondale for their use of Glendale's existing
digital two-way radio system in its current configuration.
The city system is a Motorola SmartZone® 700/800 MHz two-way radio system. The
SmartZone® System is a registered trademark of Motorola.
One of Council's goals is to have a city that is fiscally sound. This partnership generates revenue
for the services with no financial cost to the City of Glendale.
Avondale currently uses the Maricopa County Wireless Systems (MCWS) two-way radio
system. Due to coverage related issues on the MCWS radio system, Avondale is ending the
agreement with MCWS and has asked the city to enter into this agreement.
Avondale will pay the city an annual total of$108,200 for use of the radio system; no additional
costs or reconfiguration of city equipment is required with this agreement. Avondale will pay
the city quarterly and the funds will be deposited into the General Fund.
The recommendation is to waive reading beyond the title and adopt a resolution authorizing the
City Manager to enter into an Intergovernmental Agreement with the City of Avondale for use of
the Glendale SmartZone® Infrastructure System.
Resolution No. 4270 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 AVONDALE FOR
USE OF THE SMARTZONE® INFRASTRUCTURE SYSTEM ON BEHALF OF THE
GLENDALE POLICE DEPARTMENT.
11. INTERGOVERNMENTAL AGREEMENT FOR FY 2009-10 GLENDALE UNION
HIGH SCHOOL HEALTH CARE CLINIC
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This is a request for City Council authorization to enter into an Intergovernmental Agreement
(IGA) with Glendale Union High School District (GUHSD) for Fiscal Year (FY) 2009-10, to
continue operations of the school-based health care clinic for the 2009-10 school year.
The clinic at Glendale High School was established in January 2005 and provides primary health
care services to medically underserved students at both Glendale High School and Apollo High
School, who live in eligible census tract areas. Community Development Block Grant (CDBG)
funds will be utilized for this purpose.
This item addresses the City Council goal of a city with high quality services for citizens.
Council also identified programs that benefit seniors and youth as a priority to be addressed
through CDBG funding. This program will help provide site-based health care to students from
low-to-moderate income families who attend Glendale and Apollo High Schools.
The GUHSD currently operates primary health care clinics at Glendale, Independence, and
Sunnyslope High Schools. The Glendale health care clinic also provides services to Apollo High
School students at its Glendale High School clinic site. Partners such as Banner Health, Valley
Radiology at Thunderbird Medical Center, and Sonora Quest Laboratories help provide free or
discounted supportive services to the clinics. A family nurse practitioner works closely with the
school nurse to address student health concerns. The Arizona School Risk Retention Trust, Inc.
provides all necessary insurance. At Glendale High School, 79% of students are eligible for a
free or reduced-fee lunch. The percentage of those receiving a free or reduced-fee lunch is a
primary indicator of financial disadvantage, which generally equates to an increase in health risk.
Providing primary health care services at this school site helps to overcome barriers to health
care experienced by many who are low to moderate income.
The Mayor and Council subsequently approved this CDBG-funded item — along with the other
CDBG recommendations via the FY 2009-10 Annual Action Plan at their March 24, 2009
regular meeting. The Community Development Advisory Committee presented its FY 2009-10
CDBG recommendations to the Mayor and Council at the February 3, 2009 workshop.
This program, administered by the school nursing staff, will provide preventative health care and
up-to-date immunizations to more than 200 medically underserved Glendale students.
Council approved funding for this project occurred during the adoption of the FY 2009-10
CDBG Annual Action Plan. These funds will be utilized tp provide assessment and management
of acute/minor illness or injury, prescriptions, medications, physical exams, sports physicals,
well-child screening, examinations, and immunizations.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X X $10,164
Account Name, Fund,Account and Line hem Number
Glendale Union High School Health Care Clinic, Account No. 1320-31037-518200
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The recommendation is to waive reading beyond the title and adopt a resolution authorizing
entering into an Intergovernmental Agreement with Glendale Union High School District for the
Glendale High School Health Care Clinic.
Resolution No.4271 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 A
SUBRECIPIENT CONTRACT WITH THE GLENDALE UNION HIGH SCHOOL
DISTRICT FOR THE GLENDALE HIGH SCHOOL HEALTH CARE CLINIC IN THE
AMOUNT OF $10,164.
12. RATE ADJUSTMENT FOR LANDFILL DISPOSAL SERVICES
This is a request for City Council to adopt a resolution approving a gate rate adjustment for
landfill disposal services effective July 1, 2009. The increased rate would only affect external
customers bringing refuse into the landfill.
The rate adjustment will provide financial stability and enable the landfill to continue providing
exceptional services, thus meeting Council's goals of a city that is fiscally sound and a city with
high quality services for citizens.
In October 2007, the Field Operations Department engaged the professional services of R.W.
Beck, Inc. to update the Sanitation and Landfill Cost of Service and Rate Design Study.
As part of the final report, dated April 1, 2008, R.W. Beck provided a five-year forecast of the
revenues and revenue requirements of the Landfill enterprise fund. The Landfill enterprise fund
is an independent budget center that operates to provide service and set rates that recover only
the cost of providing landfill services. The landfill enterprise fund does not receive any funding
from the general fund or other funding sources.
In February 2009, city staff updated the R.W. Beck study by reviewing and evaluating current
revenue and expenditure projections, and the recommendations from this financial review were
presented at the March 31, 2009 budget workshop. The following landfill rate adjustment is
recommended for FY 2009-10:
Increase the gate rate for external customers disposing refuse at the landfill from $30.25 per ton
to $32.25 per ton. The last adjustment to the landfill gate rate occurred in July 2008.
The residential sanitation rate of $15.79 per ton for city departments and residents of single
family and duplex dwellings will remain the same. Furthermore, city residents can continue to
take up to one ton of material to the landfill at no charge and can make unlimited visits per day
with loads that weigh one ton or less.
On May 27, 2008, Council approved rate adjustments for landfill disposal and commercial
sanitation collection effective July 1, 2008.
Rates and fees are reviewed annually for residential sanitation, commercial sanitation, and
landfill services.
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Effective solid waste management services are critical to community health and safety. All
revenues and expenses are accounted for in Enterprise Funds to ensure these essential services
are financially sound. These rate adjustments provide revenues to meet expenses while keeping
rates as low as possible for residents.
The recommendation is to waive reading beyond the title and adopt a resolution adjusting the
gate rate for external customers bringing refuse into the landfill, to become effective on July 1,
2009.
Resolution No. 4272 New Series was read by number and title only, it being A RESOLUTION
OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY,
ARIZONA, ADJUSTING THE RATES FOR LANDFILL DISPOSAL SERVICES; AND
ESTABLISHING AN EFFECTIVE DATE.
13. INTERGOVERNMENTAL AGREEMENT FOR JOINT TRAINING AMONG
PUBLIC SAFETY AGENCIES IN THE STATE OF ARIZONA
This is a request for City Council to adopt a resolution authorizing the City Manager to enter into
an Intergovernmental Agreement (IGA) between Glendale Fire and Police departments and
Public Safety Agencies in the State of Arizona to facilitate joint training and participation in
training programs hosted by any of the parties. This agreement will eliminate or reduce the need
for waiver of liability forms to be completed each time Glendale hosts a class.
Entering into this IGA addresses the Council's strategic goal of one community focused on
public safety for citizens and visitors by reducing the risk to the City should injury occur to an
employee while training at the Glendale Regional Public Safety Training Center(GRPSTC).
Arizona law states the primary employer is responsible for injury to employees of a public
agency working under the jurisdiction or within the jurisdiction or control of another public
agency provided there is IGA entered into between the public agencies for this purpose. The
injured employee may not sue the secondary public agency after collecting workers'
compensation from the primary employer. Entering into this IGA with other public agencies will
reduce the risk of the City should injury occur to an employee of another jurisdiction training at
GRPSTC.
Through this IGA, the Glendale Fire and Police Departments and participating agencies will be
training together to ensure that citizens live in a safe neighborhood and that all public safety
needs are addressed in a timely manner.
The hosting agency will be responsible for the financial costs of the facilities, personnel and
other expenses for training. The non-host agency may be required to pay their share of pro-rata
cost, which may be waived at the discretion of the host agency.
The recommendation is to waive reading beyond the title and adopt a resolution authorizing the
City Manager to enter into an Intergovernmental Agreement between Glendale Fire and Police
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departments and Public Safety Agencies in the State of Arizona to facilitate joint training and
participation in training programs hosted by any of the parties.
Resolution No. 4273 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 REGARDING PARTICIPATION IN JOINT
TRAINING AMONG PUBLIC AGENCIES IN THE STATE OF ARIZONA ON BEHALF
OF THE GLENDALE POLICE AND FIRE DEPARTMENTS.
14. INTERGOVERNMENTAL AGREEMENTS WITH ARIZONA STATE
UNIVERSITY AND NORTHERN ARIZONA UNIVERSITY FOR EDUCATIONAL
PROGRAM
This is a request for City Council to adopt a resolution authorizing and ratifying the entering into
three Intergovernmental Agreements with Arizona State University (ASU) and Northern Arizona
University (NAU). The purpose of the agreements is to establish an affiliation between ASU,
NAU and the Glendale Fire Department Crisis Response Program to provide educational social
service experience for students.
Entering into these Intergovernmental Agreements addresses the Council's strategic goal of one
community focused on public safety for citizens and visitors by providing crisis intervention
support.
The Crisis Response (CR) Program specializes in customer care and has developed into an
additional core value of the Fire Department. When fife and police are dispatched to a scene, the
CR Team steps in to assist the family in crisis intervention. The team stays with family and
friends for support and resources. Fire and Police personnel, with the exception of one officer,
are able to go back in service within a shorter amount of time.
Being a volunteer program, the city is continually challenged with keeping the CR Units running
twenty four hours a day, seven days a week. Through these agreements, Bachelor and Master
level interns from ASU and NAU will staff the CR Units as they are a contributing factor to the
success of the CR Program. Typically students from such programs as social work, counseling,
public safety, criminal justice and education need to go out into the community to gain
knowledge and experience in their chosen field.
These Intergovernmental Agreements will benefit the community by providing the opportunity
for local and statewide students to learn more about their field while providing crisis intervention
support to the citizens and visitors of Glendale.
The recommendation is to waive reading beyond the title and adopt a resolution authorizing and
ratifying the entering into three Intergovernmental Agreement with Arizona State University and
Northern Arizona University.
Resolution No. 4274 New Series was read by number and title only, it being A RESOLUTION
OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY,
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ARIZONA, AUTHORIZING AND RATIFYING THE ENTERING INTO OF THREE
INTERGOVERNMENTAL AGREEMENTS ENTITLED, "AFFILIATION
AGREEMENT" OR "AGENCY AGREEMENT" WITH (1) ARIZONA STATE
UNIVERSITY — DOWNTOWN PHOENIX, SCHOOL OF SOCIAL WORK AND THE
DEPARTMENT OF SOCIAL WORK; (2) ARIZONA STATE UNIVERSITY — WEST,
SCHOOL OF SOCIAL WORK AND THE DEPARTMENT OF SOCIAL WORK; AND
(3) NORTHERN ARIZONA UNIVERSITY, SOCIAL WORK PROGRAM, FOR THE
GLENDALE FIRE DEPARTMENT'S CRISIS RESPONSE PROGRAM.
15. AGREEMENT WITH THE ARIZONA STATE LAND DEPARTMENT
This is a request for City Council to adopt a resolution amending the State Forester's
Cooperative Fire Rate Agreement with the Arizona State Land Department to provide fire
protection to state forests and wildlands.
This request supports the Council's strategic goal of one community focused on public safety for
citizens and visitors by providing fire protection to state forests and wildlands.
The State Land Department has developed a comprehensive forest and wildland fire Incident
Management System. Fire departments that are called to assist with wildland and forest fires are
those who have cooperative agreements with the State Land Department. By entering into this
agreement the Glendale Fire Department will be able to provide emergency fire suppression
assistance if needed during large scale events on state lands. Costs incurred by the department
while assisting in these events are reimbursable through the state's disaster cost recovery
process.
In June 2008 the city entered into the State Forester's Cooperative Fire Rate Agreement with the
Arizona State Land Department. Due to the number of vehicles that the Glendale Fire
Department will have available and the change on how fire employees are compensated during
deployment, an amendment to the cooperative fire rate agreement is necessary. This agreement
will cover the period for May 3, 2009 to April 15, 2010.
On June 10, 2008, Council approved the Cooperative Fire Rate Agreement with the Arizona
State Land Department to provide fire protection to state forests and wildlands.
On September 25, 2007, Council authorized the Cooperative Fire Rate Agreement with the
Arizona State Land Department to provide fire protection to state forests and wildlands.
On November 12, 2002, Council authorized the Cooperative Mutual Aid agreement with the
Arizona State Land Department to provide fire protection to state forests and wildlands.
By entering into this agreement the Glendale Fire Department will be able to provide emergency
fire suppression assistance if needed during large scale events on state lands. In return the city
will have access to state owned fire equipment if needed during periods of extreme brush fife
danger in large parks and open areas in Glendale.
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The recommendation is to waive reading beyond the title and adopt the resolution authorizing the
City Manager to amend the State Forester's Cooperative Fire Rate Agreement with the Arizona
State Land Department for fire protection to state forests and wildlands.
Resolution No. 4275 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
AMENDMENT TO THE COOPERATIVE FIRE RATE AGREEMENT NO. 01-0859-08
WITH THE ARIZONA STATE FORESTRY DIVISION TO PROVIDE FIRE
PROTECTION TO STATE FORESTS AND WILDLANDS.
16. INDUSTRIAL DEVELOPMENT AUTHORITY REVENUE BONDS FOR
GLENDALE ENERGY, L.L.C.
This is a request for City Council to adopt a resolution approving the proceedings of the
Industrial Development Authority of the City of Glendale (IDA) for the issuance of not to exceed
$6,000,000 Variable Rate Demand Industrial Development Revenue Bonds, Series 2009.
Consistent with the Council goal of providing high quality services for citizens by delivering an
environmentally and economically sound landfill energy project, the Glendale landfill methane
gas conversion facility will provide for the transmission of generated power that will benefit our
community.
The IDA proposes to issue not to exceed $6,000,000 Variable Rate Demand Industrial
Development Revenue Bonds, Series 2009 and loan the proceeds received from the sale of the
bonds to Glendale Energy, L.L.C. (Glendale Energy) to assist it in financing the costs for the
acquisition, construction and equipping of a facility to convert landfill gas to electricity. The
facility to be financed will be at the Glendale landfill located at 11488 West Glendale Avenue.
The City of Glendale, Glendale Energy and Arizona Public Service Company (APS) are parties
to agreements that permit Glendale Energy and APS to have access to the Glendale landfill for
the purpose of constructing, operating and maintaining the landfill gas conversion facility and for
the purpose of providing for the transmission of generated power from the facility for
distribution by APS. It is estimated the facility will have the capacity to provide three megawatts
of electrical power which is enough electricity for 3,000 homes.
The IDA is empowered to issue the bonds and loan the proceeds from the sale of the bonds to
finance projects as defined in A.R.S. § 35-701. Under the Act, facilities for the furnishing of
electric energy, gas or water constitute a project eligible to be financed with the proceeds of the
IDA bonds.
The IDA held an open board meeting on November 19, 2008 to consider and preliminarily
approve the financing for the issuance of revenue bonds. The public hearing required by section
147(1) of the Internal Revenue Code of 1986 was held on May 22, 2009. The IDA held an open
board meeting on June 4, 2009 to act by resolution to grant final approval to the financing and to
approve the issuance of the bonds.
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Glendale Energy's operation will convert landfill gas to energy which will give additional energy
capacity for businesses and residents. This alternative energy will aid in the protection of the
environment.
Under the provision of A.R.S. § 36-832, Glendale is not liable or obligated for the payment of
the debt obligations issued by the IDA.
The recommendation is to waive reading beyond the title and adopt a resolution approving the
proceedings of the Industrial Development Authority for the issuance of its revenue bonds in an
amount not to exceed $6 million for the benefit of Glendale Energy, L.L.C.
Resolution No. 4276 New Series was read by number and title only, it being A RESOLUTION OF
THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, APPROVING THE
ISSUANCE BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF GLENDALE,
ARIZONA OF ITS VARIABLE RATE DEMAND INDUSTRIAL DEVELOPMENT REVENUE BONDS,
SERIES 2009 (GLENDALE ENERGY, L.L.C. PROJECT), IN AN AGGREGATE PRINCIPAL AMOUNT
NOT TO EXCEED$6,000,000.
Mayor Scruggs stated that Mr. Leonard Clark, a Phoenix Resident, asked to speak on Consent
Resolutions 10, 11, 12, 14, 15, and 16.
Mr. Clark remarked that he was not living in Glendale at the moment, however, hopes to return
to the city in the future. He stated he still follows the Council's decisions and believes they are
doing a great job. He discussed the importance of health care and the insurance factor. He
approves of the city working with the state land department on fire issues. He noted Glendale
always looks outward and not inward when helping the rest of the state of Arizona. He added
the landfill issue was a wise investment for the city to venture into. He said he really missed
Glendale and will find a way to move back. He noted he agreed with the Council's decisions on
these items.
It was moved by Frate and seconded by Knaack, to approve the recommended
actions on Consent Agenda Item Nos. 1 through 8 and 10 through 16, including the
approval and adoption of Resolution No. 4270 New Series, Resolution No. 4271 New Series,
Resolution No. 4272 New Series, Resolution No. 4273 New Series, Resolution No. 4274 New
Series, Resolution No. 4275 New Series, and Resolution No. 4276 New Series; and to
forward Liquor License Applications No. 3-1223 for Glenfair Lanes, No. 3-1235 for Black
Angus Steakhouse,No. 3-1236 for Stardust,No.3-1237 for Café China, No. 3-1238 for Glen
Orange Mart to the State of Arizona Department of Liquor Licenses and Control,with the
recommendation for approval. The motion carried unanimously.
9. WEST VALLEY ADVOCACY CENTER LEASE RENEWAL
Steven Conrad, Police Chief, presented this item.
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This is a request for City Council to authorize the City Manager to execute the lease renewal
agreement between the City of Glendale and the owner of the commercial property located at
6829 North 57th Avenue that houses the West Valley Advocacy Center and authorize the City
Manager to enter into future lease renewals, subject to budget appropriations.
The renewal of the lease with the West Valley Advocacy Center addresses the Council goals of
one community focused on public safety for citizens and visitors, and a city with high quality
service for citizens. The center provides one location, which streamlines the process involved
with child crimes, sexually motivated crimes, domestic violence crime investigations, and
ensures that the rights of the victim's are met, making all necessary resources available under
one root while maintaining the confidentiality of the victim.
The City of Glendale has leased this property since November 2000. This renewal will allow
police employees to remain in the building, so that they may continue to assist crime victims.
This renewal will expire in June 2010, at which time the city can re-assess the centers needs.
On August 14, 2007, Council authorized entering into new lease renewal agreement and
addendum, which reflected additional square footage being rented by the city.
On October 25, 2005, Council authorized entering into a lease agreement addendum for a four
year period with automatic options to extend in additional one year increments.
On May 30, 2000, Council authorized entering into a lease agreement for five years.
Some of the benefits to the community having the West Valley Advocacy Center are not only
expediting the investigation process of sex offenders, but also to provide the necessary resources
for the victims of these crimes (i.e., exams, shelter, counseling, personal items, support, etc.).
The center also provides the victim with a one-stop location that is in a safe and comforting
environment and that is necessary for these very personal and sensitive types of investigations.
The West Valley Advocacy Center touches the lives of many families in Glendale on a daily
basis.
Funding is available in the Police Department's FY 2009-10 operating budget.
Grants Capital E pense One-Time Cost Budgeted Unbudgeted Total
X $120,744
Account Name, Fund,Account and Line Item Number
Crime Investigations, Account No. 1000-12150-528600
Patrol Special Revenue, Account No. 1700-12310-528600
The recommendation is to authorize the City Manager to execute the lease renewal agreement
between the City of Glendale and the owner of the commercial property located at 6829 North
57th Avenue that houses the West Valley Advocacy Center and authorize the City Manager to
enter into future lease renewals, subject to budget appropriations.
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Councilmember Clark remarked that it was her understanding this was the fourth or fifth year of
an automatic renewal on the lease. She asked if there had been any attempt to obtain a greater
concession of the lease rate, in light of today's economy. She noted the lease has continued to
rise every year. She questioned whether the city was getting their monies worth with so many
vacant commercial spaces. Chief Conrad explained the space was 7,200 square feet and they
were currently paying $15.20 per square foot. He stated next year it will be going up to $16.77
per square foot. He noted that in working with the Economic Development Department, they
had prepared a market assessment and found the going rate for property was $18.00 to $20.00
per square foot. As a result, they believe they are getting a good return for the money they
invested. He explained that other considerations were communications equipment installed at
the location. He added that they hope to move out once the court building is completed in the
next couple of years. Councilmember Clark said she was surprised the Economic Development
Department had come back with the rate cost of$18.00 to $20.00 per square foot and believes it
to be high in today's economy. She remarked she strongly advises the Economic Development
Department to first review other options before bringing another lease with an increase. Mayor
Scruggs suggested including the ancillary cost associated with relocating verses the possible
increase. She added it might help the issue and make everyone more comfortable with the
recommendation.
It was moved by Clark, and seconded by Goulet to execute the lease renewal
agreement for the West Valley Advocacy Center and authorize the City Manager to enter
into future lease renewals, subject to budget appropriations. The motion carried
unanimously.
PUBLIC HEARING RESOLUTIONS
17. PROPOSED INCREASE IN WATER, SEWER, AND IRRIGATION RATES
Roger S. Bailey, P.E., Utilities Director presented this item.
This is a request for City Council to hold a public hearing and adopt a resolution implementing a
water, sewer, and irrigation rate adjustment effective with the October 2009 utility billing.
Consistent with the Council goal of providing high quality services for citizens, Glendale's
Utilities number one priority is to provide safe drinking water and sewer services 24 hours a day,
seven days a week to all of its customers.
The recommended rate adjustments are necessary to provide the financial resources to complete
required system improvements, which are listed in the ten-year Capital Improvement Program,
operate and maintain the system to remain in compliance with federal and state regulations, and
ensure that the Water and Sewer Enterprise Funds maintain adequate operational cash reserves.
In October 2008, the Utilities Department contracted with Red Oak Consulting to update its
water and sewer rate report in preparation for the FY2009-10 budget process. This update
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addressed the financial requirements of the Utilities Enterprise Fund. As part of this evaluation,
Red Oak Consulting reviewed and evaluated revenues and revenue requirements of the
department. The results of Red Oaks Consulting updated analysis were presented at the March
31, 2009 Council Workshop.
One of Glendale's top priorities is to provide safe drinking water 24 hours a day, seven days a
week to its utilities customers. In order to provide quality water and sewer services, and remain
in compliance with Federal and State regulatory requirements, there are a series of improvements
that need to be completed. These include: design and construction of the Oasis Groundwater
Treatment Plant, renovation of water and wastewater treatment plants, rehabilitation of the water
distribution and sewer collection systems and security enhancements to critical facilities.
Staff conducted a study to determine the financial performance of the urban irrigation system, to
determine if current revenues are sufficient to cover operation and maintenance costs, and
determine if rates for the provision of service need to be adjusted. The comparison of expenses
to revenues indicated that the revenues generated from the provision of urban irrigation service
are insufficient to cover the ongoing operation and maintenance costs.
On April 28, 2009, Council adopted a resolution declaring the city's intent to increase the water,
sewer, and irrigation rates effective October 2009 and setting the public hearing for June 9, 2009.
The results of Red Oaks Consulting updated analysis were presented at the March 31, 2009
Council Workshop. At the workshop, Council directed staff to begin the process to increase
water, sewer, and irrigation rates as presented, effective with the October 2009 billing.
The proposed water, sewer, and irrigation rate adjustments will help to ensure that the city has
the financial resources to continue to provide the highest quality water and sewer services to
Glendale citizens and remain in compliance with federal and state regulations.
The recommendation is to conduct a public hearing, waive reading beyond the title and adopt a
resolution implementing water, sewer, and irrigation rate adjustment effective with the October
2009 utility billing.
Resolution No. 4277 New Series was read by number and title only, it being A RESOLUTION
OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY,
ARIZONA, ESTABLISHING WATER, SEWER AND IRRIGATION RATES
PURSUANT TO GLENDALE CITY CODE; AND SETTING FORTH EFFECTIVE
DATES.
Mayor Scruggs opened the public hearing on Agenda Item No. 17.
Mr. Ken Jones, an Ocotillo resident, stated he was aware the Council sometimes had to
make difficult decisions and respects that fact. He said when citizens like him speak out on
increases, it sounds like they are complaining; however, they are simply offering suggestions.
He suggested an increase of only three to four dollars instead of the seven or eight
recommended. He explained how money is being wasted on repaving streets four or five times.
He also noted that the city's projected growth and future utility needs are much smaller because
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of the decrease in home values. He stated that even with lower prices, they still have empty
houses all over town, which hurt the construction business. He remarked that construction, along
with the need to expand utilities, will drop dramatically for a long time. He noted the most
important issue to him was that the public was tired of city government splitting their money into
separate pockets. He stated the city has money to spend on a baseball park and the costs
associated with it, however raise rates. He remarked the money should be spent where it does
the most good for the citizens. He added the citizens deserved prudent use of these funds. He
stated the Council should spend more time out in the field noticing and preventing issues like the
continued re-pavement of the 67th Avenue project. He explained the present state of the
economy is hurting everyone and seven dollars a month mattered to retirees. He believed that if
the Council really tried, they could solve their utility needs with a three or four dollar increase.
Mr. Gary Livingston, a Sahuaro resident, stated he reviewed the executive summary
report for the water and waste water rate adjustments and recommendations. He explained that
nowhere in the report did it indicate the foreclosures on both residential and commercial
properties within the city. He stated that considering the rate of foreclosures, he believes the
actual assumptions the consultant made do not reflect the true trends. He said the 11% rate
increase would not be needed if the foreclosure rate was considered. He discussed the April 30,
2009, Glendale Star article, reporting that Mr. Roger Bailey, Utilities Director, had announced
the development of the Oasis Ground Water Treatment Plant, which was also not in the
consultant's report. The article also stated that the rehabilitation of the water distribution and
sewer system was also part of this cost. However, the current financial revenues were supposed
to be structured to take in the refurbishment of the system and it appeared this was not the case.
He added that last year they had been told the revenue increase was due to increases in materials
and that revenues would cover refurbishment. He remarked the cost of the water and sewer
system was due to new development, whether it was residential or commercial, and should be
borne by the new developer. He added that most importantly, an increase of seven dollars for a
retiree on a fixed income was a hefty monthly percentage increase. He asked Council what they
were doing for retired citizens in the Glendale area. He questioned coming here tonight since his
community believes this item has already been approved and their opinion on the matter did not
matter.
Mayor Scruggs closed the public hearing. She asked for any further discussion on this
item.
Councilmember Frate asked Mr. Bailey to come forward and provide details on this
issue. Mr. Bailey commented that last year they had approximately 61,000 active accounts and
the current accounts are roughly the same this year. He explained there were indeed
foreclosures; however, it did not have a definable impact on the rate adjustment. He noted the
rehabilitated of the water and sewer system includes growth related items and adjustments on
water quality standards. He added that the sewer line replacement programs have significant
costs which have to be factored into the rate adjustment and are costs they could not control.
Councilmember Frate commented that the Council had recommended possibly bringing back
wells as part of a water resource. He remarked on how the city works to make sure the citizens
were able to access clean water every time they open the tap, which was not always an easy task.
He added that even through the city has adequate resources at the moment, the city was always
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preparing for times when problems could happen. Mr. Bailey explained the complex system
both for water and sewer. He said they not only have to meet customer demands, but also water
quality requirements. He explained this was their goal with developments such as the ground
treatment plant. He explained this year, they had pushed back a lot of growth related projects;
however, they have no choice but to continue doing the water quality related projects.
Vice Mayor Martinez asked if the model used by the City of Glendale was the same
model used by other cities. Mr. Bailey stated the standards used to determine water rates were
widely used throughout the country. He noted they had a national firm assist them in this matter
and the findings were consistent with the practice throughout the country. Vice Mayor Martinez
remarked that if he remembered correctly, the City of Glendale's rate ranked in the middle. Mr.
Bailey stated he was correct. Vice Mayor Martinez commented that water and sewer were items
which always seem to increase because of labor, materials, requirements and growth. He noted
that no one liked rate increases; however, sometimes it was unavoidable.
Councilmember Clark commented that none of them were happy about having to approve
water rate increases. However, they could not seem to find a way to keep rates constant. She
explained the city receives their water from many different sources with each having a different
cost to the city. She explained tap water was very high and it keeps going up every year. She
added that tap water comprises a large percentage of the water being used. In addition, due to
increases in material costs and new federal regulations, the basic product by acre foot continues
to go up. She stated the basic commodity of water will never go down.
Councilmember Clark asked Mr. Bailey to expand on the need for the Oasis Water
Treatment Facility. Mr. Bailey explained that the facility eventually will have both a surface and
ground water treatment plant. He said that both of those plants were built to meet water demands
and water quality requirements. He stated that because of problems in the past with capacity,
they recognized they were relying solely on the bigger plant and decided to augment that facility
with something else. He added this plant will provide them the ability to operate their system in
a more flexible way. Councilmember Clark remarked that part of the reason, as she understands
it, was that the Oasis plant's function was to provide them some breathing room in a crises or
unusual situation, which they had learned from a past situation. Mr. Bailey remarked that she
was correct. However, the bigger issue was water quality. He stated the closer you are to the
treatment facility, the shorter the distance of travel, which improves their ability to deliver better
quality water. Councilmember Clark remarked that this facility addressed all west valley
residents receiving water from other sources that had resulted in water quality issues. She stated
the facility had a big price tag of approximately $70 million dollars. She noted the enterprise
fund issued their own bonds to pay for this infrastructure and those bonds are paid back as a
result of the rate the customers pay. Mr. Bailey explained every dollar spent was a dollar they
had to earn since these facilities were very expensive and they have to repay the loan to those
facilities. He added that what they were trying to do was to fulfill those obligations.
Councilmember Clark reiterated that no one liked raising rates; however, the Council did
do its due diligence when this issue was first brought to a workshop session. She explained how
the Council had tried many suggestions to figure out a way not to have to raise rates. She asked
staff if there was another rate increase coming next year. Mr. Bailey stated he did not want to
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predict what will happen next year. Councilmember Clark remarked she predicts the cost of
water will continue to increase. She added she does not see the price tag demising even with
today's economy.
Councilmember Goulet asked Mr. Bailey if they had an option to opt out of state and
federal regulations. Mr. Bailey stated they had absolutely no choice in the matter.
Councilmember Lieberman remarked on the enterprise funds and how it must be viewed
and operated to equal the retail of the product sold to match the cost of buying and operation of
the product. He stated it absolutely had to pay its own way. He read from Councilmember
Goulet's comments on water requirements and improvements. He commented on the rate hike
for senior citizens being a burden and understood that seven dollars meant $84 dollars a year.
However, the city does provide pure certified water at a reasonable price compared to the water
bought at the grocery store.
Councilmember Knaack asked Mr. Bailey to address conservation issues as well as the
amount paid for low water users. Mr. Bailey explained the inverted block structure and the
levels of usage and their separate cost. He stated the more you used, the more you paid as you
progress along the block structure. He noted most resident's average consumption was about
12,000 gallons, at a cost of approximately $1.80 to $2.00 per thousand gallons of water.
Councilmember Knaack compared buying a liter of bottled water at the store for the same price
as 1,000 gallons of city water. She stated water was life sustaining and citizens want to be able
to turn on the faucet and receive high quality water all the time. She thanked the department for
all their work in providing safe quality water at the best possible price.
Mayor Scruggs stated she was glad Councilmember Clark had brought up the issues
regarding the Oasis Water Facility. She remarked there had been excellent questions brought up
regarding this issue and hopes the information had enlightened citizens. She mentioned the
tearing up of 67th Avenue and asked to expand on the matter, although she believes it had
nothing to do with utility rates on water and sewer. Mr. Bailey explained the recent construction
on on Avenue relating to other things beyond water, possibly storm drains and associated
improvements, which had nothing to do with the rate structure and the water system. Mayor
Scruggs stated she understands how noticing this construction might be an irritant; however,
sometimes there were other levels of government making improvements. She asked Mr. Ed
Beasley, City Manager, to ask the appropriate department manager to prepare a chronology of
the work done on 67th Avenue.
Vice Mayor Martinez commented that 67`h Avenue borders Peoria and believes they also
had some projects on which they were working. He added there were possibly non-
governmental entities who decided to work on 67th Avenue, which appeared as through the city
was tearing up the street once again, however, it had not been the case.
Councilmember Clark remarked that she knew of new streetlights being installed at that
intersection, as well as storm drain work. She noted that unfortunately each of these projects was
on their own time table.
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Councilmember Knaack remarked that, actually, the last couple of projects were
coordinated, which was the storm drain project and street beautification. She noted that
engineering really has tried to coordinate those projects and forewarned the citizens that they will
very shortly be working on rubberizing the asphalt as the finishing touch.
Mayor Scruggs stated she will be offering comments on a subject that the two speakers
will be interested in, however, they will come under the budget section. She noted if they really
wanted to worry about exorbitant costs, they might want to stay and listen to the testimony
before Governor Brewer today regarding the legislatures proposed budget and policy changes.
It was moved by Martinez, and seconded by Clark, to pass, adopt and approve
Resolution No. 4277 New Series. The motion carried unanimously.
RESOLUTIONS
18. FISCAL YEAR 2009-10 TENTATIVE BUDGET
Sherry Schurhammer, Management and Budget Director, presented this item.
This is a request for City Council to review the FY2009-10 tentative budget and adopt a
resolution formally approving the tentative operating, capital, debt service, and contingency
appropriation budget and giving notice of the date for public hearings on the tentative budget and
property tax levy and the adoption of the property tax levy.
Once Council approves the tentative budget it will be published in a newspaper of general
circulation for two weeks along with notice of hearings on the tentative budget and the property
tax levy scheduled for June 23, 2009. The actual adoption of the property tax levy will occur at
the August 11, 2009, evening meeting.
This item incorporates the Council's Strategic Goals while ensuring the city's financial stability
by presenting realistic analyses about the provision of city services and future revenue
expectations.
The Mayor and Council's Strategic Goals continue to serve as the foundation for the
recommended budget even as we manage operations through the economic downturn.
Council approval of the tentative budget will set the maximum level of expenditures for FY2009-
10. Adjustments and reallocation of appropriation authority may be made after adoption of the
tentative budget, but the total amount of appropriation cannot be increased.
A series of Council budget workshops were conducted in March and April 2009 to review the
proposed FY2009-10 budget for revenues and expenditures.
While the current economic environment has created challenges, the City of Glendale enters FY
2010 in a good financial position. This position is a result of judicious management of limited
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city resources over the past several years as well as during the current economic downturn. This
position also is a result of strategic infrastructure and other economic development-related
investments in the community over the last several years. Consequently, the city's FY 2010
budget continues to provide resources to maintain high quality city services while moving
forward with strategies that ensure a positive, sustainable future.
The FY 2010 operating and capital budgets are based on council's continued vision of 'one
community' and the supporting strategic goals that Council reconsidered at a December 2008
retreat:
• One community that is fiscally sound,
• One community with strong neighborhoods,
• One community committed to public safety,
• One community with quality economic development,
• One community with a vibrant city center,
• One community with an active partnership with Luke Air Force Base, and
• One community with high quality services for citizens.
The recommended budget reflects the constrained and tough economic conditions the nation
currently faces. Even so, the overall intent of the FY 2010 budget is to continue providing
exceptional city services that support a high quality of life for the entire Glendale community.
The recommended budgets also reflect continued investment in the city's infrastructure based on
Council's prudent direction.
The strategy for steering the city through the economic downturn is a phased approach intended
to balance the budget and think beyond the current recession in order to position the city for
future success. This strategy's focus is to:
• maintain essential services based on sound business decisions that reflect customer
demand and efficient processes,
• minimize impacts to the public,
• communicate effectively with employees and the public regarding the city's response to
the current economic challenges, and
• avoid layoffs.
A series of steps comprise the phased budget strategy. They are designed to attain a fiscally
responsible budget and not severely diminish the valuable services the city's employees provide
to the community. Employees are the city's most valuable resource and they represent about
70% of the city's General Fund (GF) operating budget. A municipality is a service organization,
and knowledgeable, skilled employees are essential to providing quality services to our residents
and businesses. Therefore, layoffs were not implemented in FY 2009 and are not part of the
recommended FY 2010 budget.
Several steps were undertaken during FY 2009. The next steps will be undertaken with the start
of FY 2010. The FY 2010 GF operating budget has a $14.4 million shortfall between ongoing
revenue and ongoing expenses that is balanced through a mix of one-time and ongoing measures.
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The ongoing measures include the 6%ongoing, non-salary budget reductions implemented in FY
2009 plus a 15% ongoing, non-salary reduction with the start of FY 10.
The Police and Fire Departments were not subjected to these base budget reductions but will see
the implementation of ongoing, non-salary reductions that average 5.4%. In addition, their
operating budgets were reduced to match decreases in public safety sales tax revenues.
Additional balancing measures to be done administratively include the following one-time steps:
• continuing the current hiring freeze ,
• leaving unfilled those positions that become vacant as a result of retirements,
• implementing a mandatory furlough program for employees across all funds (except
represented employees in police and fire)that equates to 104 hours over 12 months,
• restructuring leases to defer principal payments, and
• deferring various compensation-related features for represented employees in police and
fire.
In an effort to recognize and reward those employees who stepped up in FY 2009 by
volunteering up to 32 hours of furlough, credit will be given for those hours during FY 2010.
Staff also negotiated a contract extension for health care services with no increase in cost or
changes in service levels.
Other balancing measures required Council policy consideration and guidance was provided
during the spring 2009 budget workshops to proceed with their implementation for FY 2010.
One measure involves revenue enhancements related to digital marquee advertising equipment.
In March 2009, Council approved a resolution authorizing staff to begin negotiations for a digital
marquee placement license agreement. New revenue for the GF is expected in FY 2010 as a
result of these negotiations.
The other measure involves approval of a one-time transfer from the Arts Fund. This transfer is
included in the FY 2009-10 tentative budget document in Schedule 4. This transfer will leave
funds available for any public art projects that might be needed in the near-term future and has
no impact on current projects.
Even with the budget reductions and other expenditure management measures, employees will
remain focused on implementing City Council's strategic goals. The provision of exceptional
city services will continue as well as collaborative, innovative efforts to:
• strengthen neighborhoods,
• ensure Glendale is a safe community,
• retain and attract quality economic development opportunities,
• foster sustainable downtown development, and
• continue the dedicated partnership with Luke Air Force Base.
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The fourth budget workshop occurred on April 29, 2009. Wrap up information regarding the
proposed FY 2010 operating budget and proposed options for the FY 2010-19 Capital
Improvement Plan(CIP) were addressed at this workshop.
The third budget workshop occurred on April 7, 2009. Information regarding employee matters
was presented and decisions were confirmed regarding the recommended operating budget and
rate recommendations for the water, sewer, sanitation, and landfill enterprise funds, both of
which were presented in earlier budget workshops.
The second budget workshop occurred on March 31, 2009. The recommended 10-year CIP and
enterprise fund rate recommendations were presented and discussed.
The first budget workshop occurred on March 24, 2009. The recommended operating budget for
FY 2010 was presented and discussed.
The Budget Workbook containing the City Manager's recommended budget for FY 2009-10 was
delivered to the Mayor and Council on Friday, March 13, 2009. A copy of the FY 2010 City
Manager's recommended budget also was available on the city's website, glendaleaz.com
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,
operations, and capital facilities and equipment. It also provides the community with a better
understanding of the city's ongoing needs for stable revenue sources to fund public services,
ongoing operations and capital facilities and equipment.
The budget provides Council, residents and businesses with a means to evaluate the city's
financial stability.
The tentative budget book for FY 2009-10 and this council communication were posted publicly
per state requirements.
All budget workshops were open to the public and were posted publicly per state requirements.
The Budget Workbook provided to Council for the budget workshops also was posted publicly
as part of the agenda packet for the budget workshops.
The annual budget (all funds) for the city is divided into four major components that include all
appropriations for the city. The total budget, including all four components, is $775 million for
FY 2010. The four components and their respective total amounts for FY 2010 are as follows
(difference with sum of components due to rounding):
• The operating budget finances the day-to-day provision of city services and totals $341.3
million.
• The capital improvement budget funds the construction and repair of city assets including
roads, public amenities and other infrastructure throughout the city. The capital
improvement budget totals $291.6 million.
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• The debt service budget is used to repay money borrowed by the city, primarily for
capital improvements, and amounts to $80.6 million.
• 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 should
they arise during the fiscal year. The contingency appropriation for this fiscal year totals
$61.6 million.
The recommendation is to waive reading beyond the title and adopt a resolution approving the
FY 2009-10 tentative budget, directing publication of the tentative budget, giving notice of the
date for public hearings on the tentative budget and property tax levy and of the date for the
adoption of the property tax levy.
Resolution No. 4278 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 A TENTATIVE BUDGET OF THE AMOUNTS REQUIRED
FOR THE PUBLIC EXPENSE FOR THE CITY OF GLENDALE FOR THE FISCAL
YEAR 2009-2010; 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 AND FOR FIXING TAX
LEVIES.
Leonard Clark, a Phoenix resident, stated he has watched Glendale grow over the last 30
years and has seen how careful city leaders have been in the past. He noted these were very
stressful times and was glad the leadership was there. He remarked on the many projects passed
by the Council and approves of their decision making process. He remarked on the central
government of Arizona wanting to sweep through the city's funds, however, they lost in court.
He asked Glendale residents to look at other cities and compare how well Glendale was fairing
because of the outstanding leadership of the Council. He stated he supports the proposed budget
and thanked staff for all their work. Mayor Scruggs thanked Mr. Clark for his comments.
Mayor Scruggs commented on Governor Brewer's hearings on the legislature's proposed
budget. She explained this budget was crafted in secrecy, without any transparency. She stated
Governor Brewer held a series of hearings and invited agencies of the state that were most
affected by changes in the budget. She also invited representatives from cities, towns and
counties to come and discuss the effects of the legislator's proposed budget, something no
Governor had done before. This proposed budget was passed at 4:00 a.m.; however, they have
not transmitted the budget to the Governor as of yet. She added that some think they will hold it
until June 30, 2009,to either have her sign it or cause government to halt. She explained she was
one of the four elected officials of the League of Arizona Cities and Town's executive committee
who attended the hearings. The executive director and three county supervisors and their
executive director had also attended.
Mayor Scruggs asked to discuss three issues the cities and towns find extremely
damaging, illegal and upset the budget being discussed tonight. She stated the first issue dealt
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with the Vehicle License Tax Shift in Senate bill 1036. She explained there has been a
constitutional provision since 1959, when the vehicle license tax was established, to share the tax
among the state, counties, cities and towns. This requires a statutory distribution of the shared
revenue fund. She noted that Senate bill 1036 requires $42 million dollars of city's and town's
vehicle license tax funds be redirected to local school districts. She explained schools were not a
responsibility of cities and towns and there were case laws establishing that fact. She related an
Apache Junction story which detailed how they had also tried to assess impact fees for new
schools, however, it was turned down by the Arizona Supreme Court since cities and towns have
no responsibility or authority for schools. She stated that Senate bill 1036 results in a net
increase in state revenues since funding schools is a state general fund responsibility. This
represents a violation of proposition 108, the redistribution of a revenue sharing fund that
benefits the state's general fund. She explained this was likely to result in immediate litigation,
sending the budget out of balance once again. She noted the League of Arizona Cities and
Towns has already secured a legal opinion as to the legality of this and it was both illegal and
unconstitutional. She added that shifting a state responsibility onto the backs of cities, towns and
counties was egregious, unconstitutional and a breach of contract. She understands that in
stating this, she will incur the wrath of many legislators; however, she believes it must come to
light. She added that when she spoke on the panel, she stated she would have no other choice
but to advise the citizens of Glendale of what was occurring in the legislature. She added that
should this pass, Glendale's budget will be out of balance, since they were taking funds which
constitutionally belong to the city.
Mayor Scruggs continued and discussed the next issue, moratorium on impact fees. She
explained this was included in Senate bill 1035. She stated this bill did not bring any money to
Arizona state government to balance the budget. She noted this was a policy matter that has
received no discussion and represents a major change in policy, which had been inserted into a
budget bill. She explained it was drafted in secrecy by the Central Arizona Home Builders
Association. This bill represents a fundamental change to the principal that new growth should
pay for itself and shifts the responsibility onto existing residents and tax payers. She explained
that new development should pay for its self and developers should pay the cost for
infrastructure that is created by new commercial activity. She noted they receive money from
impact fees to pay for water, sewer, infrastructure, landfills, police, fire, parks and libraries. She
explained the difficult process of increasing the development impact fees, However, Senate bill
1035 will create a three year moratorium on development impact fees, increases on construction
sales tax and changes in building codes. She explained this proposal jeopardizes impact fees for
debt service bonds and by this, water and sewer rates will have to go up in order to pay debt.
She stated at the moment, they had a balance system with rates that not only pay for the cost of
buying the water, but also for the refurbishing of the system. She referenced the Oasis Ground
Water Treatment Facility stating that without development impact fees from those developments;
the citizens will be paying for it out of water and sewer rates. She noted the situation was so
severe, some communities will go insolvent. She explained that most people were not aware of
any of this. However, she feels she had a duty to tell the citizens what was occurring in the
legislature.
Mayor Scruggs reported that also included in Senate bill 1036 was a property tax
assessment ratio change. She explained that commercial and residential properties have a
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different assessment rate. She stated those who used the structure for gain should pay higher
rates. However, the business community did not agree with this. Several years ago, there was
legislation introduced to drop the assessment ratio. The cities and towns did not agree since they
had built their budgets based on property tax collection. As a result, if dropped, there will not be
enough money collected to service the bonds that had been sold. She noted an arrangement was
worked out where the commercial assessment tax rate would go down 1% per year and the cities
and towns would absorb that percentage rate through planning. However, Senate bill 1036 will
immediately drop the rate to 10%, which was more than a 50% cut in business property tax. She
explained the state was actually pushing all this onto the cities and counties. This will make it
more difficult and expensive to sell bonds approved by voters, but not yet issued. She noted
bond ratings will decline and interest costs will go up, creating an even larger burden for tax
payers. She noted that combined with declining property valuations, this will be another tax hike
on home owners in order to service existing debt. She remarked this does nothing to balance the
state budget, however, does great harm to them all.
Mayor Scruggs expressed that at the hearing in two weeks, the city will be adopting the
property tax levy and not increase property tax rates. She explained they were required by law to
present a balanced budget, even if these bills passed. She stated the city will not be able continue
to provide essential services such as water, sewer and law enforcement without these
development fees. She encouraged everyone listening to become involved in this issue and to
realize the legislature was not saving them from a tax increase, but actually shifting the issue to
the cities and towns. She invited everyone who disagreed to let their legislators know how they
felt regarding these issues. She thanked everyone for listening to this very important message
and believes it was her responsibility to share it with them.
Councilmember Clark remarked that the critical message in all this was that if you
support the republican legislation as currently crafted, there will be no tax increase on the face of
it. However, the citizens will be assessed greater property valuations or higher rates on a local
level to make up the difference. She added the legislature was unwilling to look at its budget and
do what needs to be done, and it should not be done on the backs of people in cities and towns.
Vice Mayor Martinez thanked Mayor Scruggs for bringing this information to their
attention. He remarked that all this was mindboggling, to say the least. He noted it was
incomprehensible how this could be done at the last minute and was surprised it had not been
reported in today's newspaper. He explained if they thought they were having problems now,
this would blow us out of the water. They would have to make some drastic cuts in the budget
that could be hurtful to citizens and employees.
Mayor Scruggs commented on a Pima County supervisor who gave testimony on the
vehicle license tax. The supervisor stated that 700 people would have to lose their jobs in order
for Pima County to meet their obligation by Senate bill 1036 to fund education for which they
have no legal responsibility. Mayor Scruggs remarked that the public would probably hear the
Governor criticized for daring to have a hearing on this matter. She commented on an editorial
by the director of the Arizona Department of Transportation stating what they could expect in the
way of reductions on transportation services.
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It was moved by Frate, and seconded by Lieberman, to pass, adopt and approve
Resolution No. 4278 New Series. The motion carried unanimously.
NEW BUSINESS
19. COUNCIL SELECTION OF VICE MAYOR
In accordance with the Charter and pursuant to City Council Guidelines Council will designate
among its members a vice mayor.
The Glendale City Charter provides for the composition of the Council. The Charter states:
Art. II, Sec. 7. Vice mayor.
The council shall designate one (1) of its members as vice mayor, who shall serve in such
capacity at the pleasure of the council. The vice mayor shall perform the duties of the mayor
during the mayor's absence or disability.
Council adopted the City Council Guidelines at the May 26, 2009 Council meeting. As stated in
the City Council Guidelines, nominations were indicated by Councilmembers at the June 2, 2009
workshop requiring a formal nomination and selection process.
On May 26, 2009 Council adopted a resolution approving the City Council Guidelines.
Action: The Mayor will accept a motion or motions, call for a second, and conduct a vote of the
Council that shall, by virtue of assent of a majority, designate one of its members as vice mayor.
It was moved by Knaack, and seconded by Frate, to approve Martinez as Vice
Mayor
Leonard Clark, a Phoenix resident, stated that he liked all of the Councilmembers and
believes all have done an excellent job. However, he does prefer change once in a while and
believes Councilmember Lieberman would be good for the job. He added that if he had his pick,
he would elect every one of them.
Councilmember Clark remarked she would have thought all nominations would have
been made prior to voting. She stated her vote today in no way reflects on her opinion of Vice
Mayor Martinez. She noted she has a great deal of respect for him and all he has done in the
community. She explained this was also not an attempt to position herself so at someday she
could be Vice Mayor. She noted the issue for her was fairness and lack of prejudice. She stated
that by adopting a system which recognizes seniority, they are adopting a fair system that does
not require you to be a team player. She said all of them had earned their strips and all had a
right to be considered for Vice Mayor. She explained that the fairest way was to use a simple
seniority rotational system. She intends to vote in the negative on the nomination of Vice Mayor
Martinez, who has had the title for four years, to offer someone else a chance.
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The motion carried with Goulet, Clark and Lieberman voting nay.
Mayor Scruggs stated the motion passes and Vice Mayor Martinez will continue as
Vice Mayor for the next fiscal year.
Vice Mayor Martinez thanked the colleagues who voted for him and pledged to work
with the full Council and do his very best in serving the citizens of Glendale. Mayor Scruggs
thanked the Vice Mayor for his service, especially in the last few weeks when asked to take on
additional responsibilities. She noted he has represented the citizens of Glendale, City Council,
city staff and management with true professionalism and willingness to serve.
Councilmember Knaack commented on Councilmember Clark's statement that Vice
Mayor Martinez had served as Vice Mayor for four years; she noted it had only been two years.
Councilmember Clark remarked that she stood corrected,
REQUEST FOR FUTURE WORKSHOP AND EXECUTIVE SESSION
It was moved by Martinez, and seconded by Frate, to hold a City Council Workshop
at 1:30 p.m. in Room B-3 of the City Council Chambers on Tuesday, June 16, 2009, 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 Phoenix resident, stated he was concerned about what was happening in the
state of Arizona. He mentioned his family history in Glendale and how much it meant to him.
He noted he hopes the legislature does the right thing and stands by the Governor. He explained
he was a democrat, however, does support the republican Governor, as should the legislature.
He discussed how all these changes could have devastating effects on Glendale's economy.
COUNCIL COMMENTS AND SUGGESTIONS
Councilmember Frate commented on last Friday's Rose Lane Aquatic Center event. He stated
the fire and recreation departments worked together on a drowning awareness program. He
noted if someone cannot afford to take swimming lessons, they will be able to through the Parks
and Recreation Department. He encouraged anyone interested to call. He reminded everyone to
watch children around water.
Councilmember Knaack remarked that anyone interested in emailing their legislators on the
issues discussed by Mayor Scruggs should go to www.arizona.gov, for a list of representatives.
Mayor Scruggs encouraged people to please get involved and understand the jeopardy the cities
are being put in because of policy changes that have had no public discussion or transparency.
ADJOURNMENT
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There being no further business, the n ' ., was adjourned at 8:45 p.m.
Pamela Hanna- City Clerk
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