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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 10/30/2017 City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 im orgry Meeting Minutes Monday, October 30, 2017 10:00 A.M. Special Workshop Meeting Council Chambers City Council Mayor Jerry Weiers Vice Mayor lan Hugh Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner CALL TO ORDER Mayor Weiers called the meeting to order at 10:03 a.m. He announced the executive session would be conducted prior to the workshop session. ROLL CALL Present: Mayor Jerry Weiers Vice Mayor Ian Hugh Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Lauren Tolmachoff Councilmember Bart Turner Absent: Councilmember Ray Malnar Also Present: Kevin Phelps, City Manager; Tom Duensing, Assistant City Manager; Michael Bailey, City Attorney; Julie K. Bower, City Clerk; Jack Friedline, Assistant City Manager MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Jamie Aldama, seconded by Councilmember Joyce Clark to hold an executive session. AYE: Mayor Jerry Weiers Vice Mayor Ian Hugh Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Lauren Tolmachoff Councilmember Bart Turner Other: Councilmember Ray Malnar(ABSENT) Passed Councilmember Malnar arrived after the motion to go into executive session. EXECUTIVE SESSION A motion was made by Councilmember Jamie Aldama, seconded by Councilmember Joyce Clark to adjourn the executive session. AYE: Mayor Jerry Weiers Vice Mayor Ian Hugh Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner Passed The executive session adjourned at 11:09 a.m. City Council Meeting Minutes-October 30,2017 Page 2 of 8 WORKSHOP SESSION 1. COUNCIL POLICY GUIDANCE—SESSION 2 Presented By: Sam McAllen, Development Services Director Presented By: Brian Friedman, Economic Development Director The meeting reconvened at 11:15 a.m. Ms. Bower read the item by title. Mr. Phelps said the goal of the special workshops was to provide Council with a baseline of knowledge. Mr. McAllen said annexation was a tool to manage growth. Annexation required the consent of property owners with 50% or more of the value of real and personal property and more than 50% of all owners. The property must currently be unincorporated. The annexation could not create county islands but there was no obligation to annex the entire county island. There must be contiguity with a 300-foot common boundary and the property must be a minimum of 200 feet wide at all points not including roadways or it must be surrounded by the City on at least 3 sides. Mr. McAllen said the City's general plan, Envision Glendale 2040, was a policy and reference document that guided future development, projects and programs. It was used to determine how and where growth should occur and where strategic investments in capital improvements should be made. Mr. McAllen said there were five areas that were designated as growth areas: Glendale Centerline; Loop 101 North; Western Area Plan (83rd -115th Avenues); Luke Compatible Land Use Area; and the Loop 303 Corridor. The focus for the Loop 303 Corridor was on shopping/employment and low residential growth. The goals and policies for the growth areas were: 1. Well-paying, high-quality jobs 2. Appropriate infrastructure 3. Reasonable, responsible urban development 4. Multi-modal transportation 5. Each area had a unique identity Mr. McAllen said annexation was a 10-step process governed by Arizona Revised Statute 9-471, the Municipal Annexation Policy, City Council and service delivery provisions. He said there were no development impact fees (DIF)for the area west of 115th Avenue. Councilmember Tolmachoff referred to step 4 of the annexation process—Council workshop direction which was optional—after that step, she asked if there was no longer opportunity for a Council workshop. Mr. McAllen said once the blank petition was recorded, there was a 30-day waiting period, during which Council had to hold a public hearing within the last 10 days. He said, with the example of the Woolf Logistics annexation, the blank petition was recorded and Council was holding a workshop on November 7th. Councilmember Turner said there was a change made to the process. The wording for the workshop was changed from "shall"to "may." He thought Council should consider going back to shall. The wording in step 10 should be changed from "adopt annexation ordinance"to"consider annexation ordinance." City Council Meeting Minutes-October 30,2017 Page 3 of 8 Mr. McAllen said the wording changes were made in 2014. Councilmember Tolmachoff asked if there was an opportunity to make changes to the pre-annexation development agreement (PADA). Mr. Bailey said the PADA could be amended if both parties agreed. With Woolf, it was an ownership group and the challenge was getting everyone to agree. Councilmember Turner suggested looking at a lifespan for a PADA. If it hadn't been exercised, there should be a timeframe for it to expire, especially in a situation where the PADA was approved by an entirely different Council. Mr. McAllen said after the annexation ordinance had been approved, there was a 30-day waiting period until it became effective. The annexation ordinance was sent to the County and the newly annexed property became part of the adjoining Council district. Notification was sent to the Fire District. Re-zoning followed the City process and could be adopted during the annexation ordinance or immediately following the annexation action. He said zoning was like for like in the initial action. Councilmember Tolmachoff asked what the current zoning was for the Woolf Logistics property. Jon Froke, Planning Director, said it had County zoning of R-43, which was comparable to A-1, agricultural. The property had a military-compatible permit with the County. The City didn't currently have that designation and was working on the issue. Councilmember Clark wanted to change the process to offer an option instead of the like for like. The City could let the property owner have the zoning they wanted right up front. Mr. Phelps said staff was making notes of Council's requests and comments and would start working with Council on updating the policy. Mayor Weiers agreed with Councilmember Clark's idea. Mr. McAllen said the annexation policy history was as followed: in 2003, the focus was on the Loop 101 corridor; in 2005, the focus was on the Loop 303 corridor; and in 2014, the City discontinued actively pursuing opportunities. Councilmember Clark said from 2005 to 2014, the City was supposedly doing outreach to property owners for voluntary annexation. She asked what was done to reach that goal. Mr. McAllen said some research would be necessary to answer the question. Mr. McAllen said the policy components for developed land were: •Self-inventory • Neighborhood meetings •Cost-benefit analysis •Council workshop/direction (optional) Councilmember Clark requested two sets of data regarding residential annexations: what was the cost to the City every time it annexed a home; and what were the cost benefits/disadvantages for residents considering annexation. Mr. Phelps said there were a lot of ways to do the analysis and cost was one but it also depended on location for service levels. City Council Meeting Minutes-October 30,2017 Page 4 of 8 Councilmember Turner wanted to use the example of someone who brought in 100 acres-what would the impacts be for 1-acre lots versus 5-6 homes per acre. There would be more state-shared revenues for denser zoning and higher density also brought commercial development. Councilmember Tolmachoff said it was another good reason to find out what the desired zoning was on the front-end, so the City and Council knew what was planned for the property. Mr. McAllen continued with the components for developed land. For a PADA, the components were: •Outlined infrastructure upgrades required before annexation •Council discretion to accept existing development standards • Identified fees •Clarified City scope of services •Provided information on any improvement programs available to applicants Councilmember Clark said with regard to a specific annexation request, east of 115th, the Council didn't have a sense of whether or not it wanted to annex. There had to be some sort of cost-benefit analysis for the City. Previously, the City had required an analysis of development standards and required that it would have to come up to City standards. Mayor Weiers said the County didn't create county islands, cities did and it was not good for anyone. He asked staff and Council to keep that in mind. Mr. McAllen said the current policy did address identifying existing standards and did say that Council could accept current standards. Mr. McAllen said the municipal service fee (MSF)was calculated on one year of the City's current property tax and included both primary and secondary taxes. It was based on the assessed valuation and Council had the discretion to waive the fee. The fee was intended to address lag time on property tax collections. Mr. McAllen said the policy components for undeveloped land included: •Sometimes used a PADA •Outlined more specific development requirements • Focus was on infrastructure improvements required •Cost-benefit analysis of short and long term impacts (at Council request) Mr. McAllen said the issues regarding code compliance were: • Differing codes was an area of concern •Mostly affected developed properties • Pre-annexation analysis of code violations •Notification of property owners • Must comply within 1 year of annexation Mr. McAllen said the pros to be considered for annexation were: it managed urban development; provided efficient service delivery; expanded the economic base; property was developed with City standards; it minimized county islands; controlled aesthetic appearance of community; and protected transportation investments. The cons were: a plan for providing City services was required; required infrastructure investments; property owners might prefer rural environment; increased tax rates and fees; and property owners must abide by City Code requirements. Councilmember Turner asked for clarification regarding DIFs west of 115th. The City wouldn't be City Council Meeting Minutes-October 30,2017 Page 5 of 8 providing water and sewer but it would be providingo1herservioea. He asked why there were no DIFs. Mr. McAllen said that policy�went into effect in 2014. The City didn't think there would be a lot of residential growth in the area. The PADA did agree to pay the City the equivalent for a proposed residential development. He said Council might want to have a discussion regarding the issue. Councilmember Turner asked that it be put on the list. Mr. McAIIen said the economic impact analysis looked at three scenarios: Loop 303 Phase 1 Ub|itv��roupPAO/�on|y; nlodi� Corridor entire Municipal Planning Area (MPA) (Perryville Road). The analysis included the fiscal impacts. He said, regarding public safety costs, there was noopbon for alternative fire protection. The option s for police included City service or a contract with the County. Councilmember Malnar wanted the cost of the automatic aid the properties were already receiving and the cost for that. Councilmember Turner thought there were options for fire service. Terry GaniaVn, Fire Chief, said there could be a temporary option with the City of Surprise providing service while the City was building the fire station. He said response time had to be within a certain number of minutes and that would not be achieved with automatic aid. Automatic -- aid was different than mutual aid where the parameters were prescribed in an agreement. Councilmember Turner said the options should be reviewed by Council and Council would choose the option. Councilmember Tolmachoff said there was an opportunity to share the cost with other municipalities because the fire station was not going to be needed for several years. Chief Garrison said staff would bring the options forward but he had the responsibility to make sure the Fire Department had the appropriate response to any areas that were in the City. _ Cmunci|nmenmberClark was surprised bosee that the Fire Department had proposed two fire stations. It should look at response times and the population. She hoped that when options were brought forward, they included looking at 1 station, 2 stations plus other options and the timeframe the City was looking at for expanded fire service. Mr. McAllen said the methodology reflected the following assumptions: build-out or 2040 impacts and estimated potential street miles. It did not include the cost to upgrade existing County infrastructure. It also used 12-year City budget historical trends. Mayor Weiers didn't know how accurate the 12-year historical trend was because of the economic downturn the City went through. Mr. McAllen said it also assumed a long-term sales tax rate of 2.9%. Councilmember Clark said a long-term 2.9% sales tax rate shouldn't be assumed. It could change so assumptions should be made at varying rates. Mr. McAllen said non-residential impacts included: employment; non-residential square footage; taxable sales; and street miles. Residential impacts included: housing units; population; and assessed value. City Council Meeting Minutes-October 30,2017 Page 6 of 8 Mr. McAllen said the public safety specifics for the full MPA, included: 2 new fire stations with 2 engine companies; County contract assumed to be 25% less than City cost; $22 million annual cost for City provided police and fire; $18.9 million annual cost for City fire and County policing; and it did not include additional one-time costs for stations/equipment. Councilmember Clark said the annexation policy was for commercial and industrial and to not encourage residential west of 115th Avenue. The City was trying to create a major employment area. Councilmember Turner said to keep in mind that the City's intention for the strip annexation was to protect Luke Air Force Base. He asked for a graphic that showed what uses would be allowed inside the noise contours. Mr. McAllen said the transportation specifics included: 193.76 miles of new streets projected; $6.6 million annual maintenance costs; $539,000 annual transit; assumed $21,595 per lane for maintenance and $15,492 per arterial lane mile for transit; and current costs were inflated at 2%. He also reviewed one-time revenues. Councilmember Tolmachoff asked if the public safety costs changed if the development was residential or commercial. Rick St. John, Police Chief, said commercial and industrial had the least impact and retail the most. Residential was somewhere in between. Mr. McAllen said important caveats were: it was a 25-year outlook; market conditions would affect land use; land use impacted tax revenues; conservative estimates were used; assumptions and actual conditions would likely result in higher assessed values; and it was presented in current dollars. Mr. McAllen said the findings were: • Modified Loop 303 corridor—less residential, largest positive annual net impact •Entire MPA—similar in magnitude to Modified Loop 303 and revenue to expenditure ratio slightly lower •Woolf PADA only—smallest annual net impact due to size and highest ratio of revenue to expenditure Mr. McAllen said, in summary, 71% of projected on-going expenditures was for police, fire and street maintenance. All 3 scenarios could have net positive impact under both public safety scenarios. The property and sales tax were projected to cover cost of service. The land-use projections were based on the General Plan and not market feasibility analysis. The land-use changes could impact projected fiscal impact. Mr. McAllen said future discussion topics were: •Applied Economics presentation on impact analysis • PADA deep dive • Insurance Services Office (ISO) rating impacts •Comparative analysis- County vs. City •DIF projections Councilmember Clark asked that staff continue to give raw data without any preconceived notions of the outcome. Councilmember Turner said the nature of employment the City was trying to attract in the area would impact transportation and public safety costs. He asked how the water and sewer service City Council Meeting Minutes-October 30,2017 Page 7 of 8 would impact the 100-year water supply for the City as a whole. Councilmember Malnar said the recent policy seemed to be reactive instead of proactive. He asked if the City should move to a more proactive policy. Councilmember Tolmachoff asked if the November 7th workshop would look at more than Woolf Logistics. Mr. McAllen said it would feature a discussion on Woolf Logistics. Councilmember Tolmachoff asked about existing fees. Mr. Froke said there was the MSF fee but the City had never collected it. Jean Moreno, Strategic Initiatives & Special Projects Executive Officer, listed the questions and concerns raised by Council that staff would be addressing in the future. Councilmember Clark asked that staff share the list with Council so that it could provide feedback. Councilmember Tolmachoff asked what happened if the private water supply became contaminated. Brian Friedman, Economic Development Director, said 30% of the Loop 303 was in the PADA and must seek Council's approval for annexation. The other 70% could stay in the County and the City would miss out on fees. Councilmember Clark said that could be a good reason to re-establish proactivity with regard to annexation. Councilmember Turner said the City was looking at a strategic approach to annexation such as fee waivers, subsidizing growth and a cost-benefit analysis should be required. Mr. Duensing said staff looked forward to getting back in front of Council for further discussion. ADJOURNMENT Mayor Weiers adjourned the meeting at 1:38 p.m. I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the meeting of the Glendale City Council of Glendale, Arizona, held on the 30th day of October, 2017. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 6th day of November, 2017. /dal `� apr K. Bower, MMC, City Clerk City Council Meeting Minutes-October 30,2017 Page 8 of 8