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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 2/26/2019 City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 GLENDr Meeting Minutes • Tuesday, February 26, 2019 12:30 P.M. Workshop Meeting Council Chambers City Council Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner CALL TO ORDER Mayor Weiers called the meeting to order at 12:31 p.m. ROLL CALL Present: Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bait Turner Also Present: Kevin Phelps, City Manager Michael Bailey, City Attorney Jim Gruber, Deputy City Attorney Chris Anaradian, Assistant City Manager Julie K. Bower, City Clerk WORKSHOP SESSION 1. RELOCATION OF CITY PROSECUTOR'S OffICE Removed from agenda 2. DEVELOPMENT IMPACT FEES- UPDATE Presented by: Chris Anaradian,Assistant City Manager Ben Griffin, Tishler Bise Ms. Bower read the item by title. Mr. Anaradian said Arizona Senate Bill (SB) 1825 made development in cities fair, transparent, defensible and sensible and provided details that were part of the impact fee mechanism study. He said Tishler Bise had a vast amount of experience in administering similar programs and had assisted in analysis and development of the new fee structure. He provided an overview of: • Land Use Assumptions • Proposed Changes for 2019 Update • Infrastructure Improvement Plan by System Asset • Development Fees by System Asset • Next Steps Vice Mayor Clark asked if SB 1825 was a fix to a problem specific to the time the legislation was created. Mr. Anaradian said the issues at the time were resolved in 2014. City Council Meeting Minutes-February 26, 2019 Page 2 of 11 Vice Mayor Clark asked if the question no longer applied in the current environment. Mr. Griffin said it did. For debt issued prior to August 1st, 2014, the repayments could still be collected. Any debt issued after that date, the debt could not be recouped. Vice Mayor Clark asked for clarification on whether debt could be issued on existing infrastructure. Mr. Griffin said if it was allowed by enabling legislation then debt could be issued. If it was not identified as a necessary public service, issued debt could not be recovered. Mr. Anaradian added it was specific to fees collected on a new development application and was separate from the City budget. Vice Mayor Clark asked if a city was mandated to use its own capacity to repay debt before it could rely on development fee revenue. Mr. Anaradian said development fee revenue, based on the service provided, could be used for a portion of the burden. If a project was identified and fees were collected, the City was obligated to spend the funds on the project or service or the funds had to be repaid. Mayor Weiers said the bill was necessary to remedy a problem that was caused by some builders. Mr. Griffin explained the methods of the study. Councilmember Aldama asked if there was a plan to offset districts that did not have growth and therefore could not collect fees. Mr. Anaradian said it was a specific program designed to address new units. A justifiable service to new residents was based on services currently provided and did not prohibit higher service levels. For example, if fees were paid in one district, the funds could be distributed to all parks. Councilmember Aldama asked if the development infrastructure fees (DIF)went to the existing infrastructures and amenities in the area where it was generated. Mr. Anaradian said the DIF were limited to new facilities. The program was tied to the idea of growth in the City. Vice Mayor Clark asked how much reliance was there regarding existing and new park needs. She asked how building a recreation center at Heroes Park fit with the DIF and the Parks Master Plan. Mr. Anaradian said the Parks Master Plan was the basis for the analysis of the DIF since it was a new facility. However, the enabling legislation had limits on recreation facilities as well as the level of service. It was the basis for updating the fees. The Infrastructure Improvement Plan (IIP)was the list of projects that could benefit from the program. Jim Burke, Public Facilities, Recreation and Special Events Director, said the legislation limited the size of a recreation building. If the recreation center at Heroes park was larger than allowed, only a portion of DIF could be used. Councilmember Tolmachoff asked how the persons-per-housing-unit formula was determined. Mr. Griffin said the persons-per-housing-unit formula was from the American Community Survey and the most recent data was from 2017. City Council Meeting Minutes- February 26, 2019 Page 3 of 11 Councilmember Tolmachoff asked if the formula could be reviewed because the multi-family market was changing. Mr. Griffin said the single-family occupancy rate had decreased and the multi-family figures had increased. The rate should be updated every five years. Councilmember Turner asked if the figures for single and multi-family persons-per-housing unit was a citywide number. Mr. Griffin confirmed it was citywide. Councilmember Turner asked if it was possible to base the number on growth. Mr. Griffin said the size of the unit could be used to determine the rate but it was an average. Councilmember Turner asked if DIF funds could be used for expansion to meet the needs of growth. Mr. Anaradian said that was correct. Vice Mayor Clark asked if the proposed fee for police facilities for multi-family was per unit or per complex. Mr. Anaradian said the fee was per unit. Vice Mayor Clark asked why there was a large difference in the amount for a new fire station versus a police station expansion. Mr. Anaradian said it was based on the nature of the western area and the possibility of a higher need for fire services over police services. Mayor Weiers asked how the increased fees would change economic development opportunities and how the proposed fees aligned with other cities. Mr. Anaradian said the fees were targeted towards a value proposition to be in the City. Neighboring communities followed the same program and more information would be brought forward at a future workshop. Maricopa County did not provide the same level of service as cities and did not follow the program. Councilmember Turner asked if the division was consistent through the presentation. Mr. Anaradian explained in the presentation, the term "service area" pertained to the two divided areas and "citywide" pertained to the entire city. Councilmember Tolmachoff recalled the estimated cost of Ball Park Boulevard was $6 million but was listed at nearly$11 million. Mr. Anaradian said the cost estimate for Ball Park Boulevard was recently updated to include the realignment of the road and the bridge component. When it was presented to Council previously, it did not include a design, interagency cooperation or a permit from Salt River Project(SRP). There was an update planned for Council discussion. Councilmember Tolmachoff asked at what point would Council be updated regarding the City Council Meeting Minutes- February 26, 2019 Page 4 of 11 additional costs of the project. Mr. Phelps said a Council discussion was planned when more information was received. The initial cost was a rough estimate and several components were not included. MAG had thought it had access capacity but discovered the costs were higher than anticipated. Mr. Anaradian said the import of fill was required for the project and that was driving some of the cost. Councilmember Tolmachoff asked if streets that needed reconstruction were taken into consideration. Mr. Griffin said impact fees could not be used for reconstruction, rehab or renovation but could be used for additions to existing streets. Vice Mayor Clark asked why libraries, parks and police could be labeled as improvements. Mr. Anaradian explained additions to existing parks or libraries was allowed but the funding could not be used for repairs. If the funds were not used correctly, the funds would have to be returned to the original source. Councilmember Malnar asked how the fees were assessed. Mr. Anaradian said the fees were typically assessed when the building permit was issued. Councilmember Malnar asked if a fee change impacted permits issued. Mr. Anaradian said in the past, there was a rush to apply for permits before the fees changed. 3. COUNCIL ITEM OF SPECIAL INTEREST REGARDING ELECTRONIC PLAN REVIEW Presented By: Stephen Dudley, Interim Director, Development Services Ms. Bower read the item by title. Mr. Dudley said the purpose of electronic plan review (EPR)was to allow construction drawings to be submitted in an electronic format to the City for plan review and permitting via an internet web portal. Vice Mayor Clark asked when the EPR system would be implemented. Mr. Dudley said the implementation began approximately 18 months after the contract was signed with SmartGov. Vice Mayor Clark asked who was responsible for inputting data. Mr. Dudley said the vendor was responsible for transferring the data to the new system. Building Safety was archiving past data as read-only and active data was transferred to the new system. Mr. Phelps said it was a complex project involving several departments that benefited daily tasks for everyone. Vice Mayor Clark asked if there were thoughts on fast-tracking the implementation of the new system. City Council Meeting Minutes-February 26, 2019 Page 5 of 11 Mr. Phelps said the implementation was being phased. Staff did not want to risk major errors. Vice Mayor Clark asked if any cities used SmartGov or a similar system. Mr. Dudley said two cities, Buckeye and Maricopa, used SmartGov and several others used electronic plan review and permitting with other systems. Mayor Weiers asked if the Fire and Police Department would have access to the plans electronically and would be able to use it during an emergency, if needed. Mr. Dudley said that was correct. 4. FY2019-20 HUD GRANT ACTIVITIES AND FUNDING RECOMMENDATIONS Presented by: Stephanie Small, Community Services Department, Director Charyn Eirich-Palmisano, Administrator Community Revitalization Division Ms. Bower read the item by title. Ms. Small presented an update on the fiscal year 2019-2020 Housing and Urban Development (HUD) grant activities and funding recommendations for the annual funding process in order to meet the May 15th deadline to HUD. She reviewed: •Grant cycle and funding criteria •Community Development Advisory Committee (CDAC)funding recommendations for FY 2019-20 grant funding Ms. Small was requesting Council's feedback and direction on proposed funded activities and CDAC's recommended funding allocations. Ms. Eirich-Palmisano reviewed the recommendation process and the recommendations from CDAC. The City received funding from three sources: Community Development Block Grants (CDBG), Home Investment Partnership (HOME) and Emergency Solutions Grants (ESG). Each source came with Federal regulations and limitations. Vice Mayor Clark asked what organizations were denied funding and what was the basis for denial. Ms. Palmisano said One Step Beyond requested funding to purchase equipment for a thrift store but withdrew its application. Bloom Up Glendale did not comply with Federal regulations and school agencies that applied were outside of the low-to-moderate census tracks. Vice Mayor Clark asked if there was a point system when applications were reviewed prior to being forwarded to the CDAC and Council. Ms. Palmisano said there was not a point system utilized for staff review. Staff took into consideration the previous years' performance and single audits if it was an existing non-profit. Staffs findings were highlighted in the information given to CDAC for recommendation. Vice Mayor Clark asked if a point system could be considered. Ms. Palmisano said a point system could be integrated. Vice Mayor Clark said there was a program in the Community Action Program (CAP)that City Council Meeting Minutes-February 26, 2019 Page 6 of 11 provided eviction assistance services. There was a $1,000 cap per entity or individual. The requested amount was $70,000 but the proposed award was $35,000. With a cap of$1,000 only 35 people would be assisted. Ms. Palmisano said that was correct. Rent amounts in Glendale varied and the amount of assistance was based on need. CAP received funding from multiple sources to assist when funds were depleted to help the most vulnerable clientele in the City. Ms. Small said CAP also assisted with utilities and had a variety of funding sources. The funds were leveraged to provide assistance to as many people as possible. Vice Mayor Clark said the information indicated that"clients were presumed to be below the 80% annual median income." She asked if there was a requirement to have a better verification system to be sure clients really qualified for the program. Ms. Small said information was verified as much as possible and the hearing process was important for that reason. Vice Mayor Clark said the location of Community Legal Services was in Phoenix. She asked if the difficulty a person might have traveling to the location was taken into consideration. Ms. Palmisano said Community Legal Services was the only entity that provided fair housing legal advice. She acknowledged the location was a disadvantage but said most who utilized the services did so by phone. Vice Mayor Clark asked when the award was less than the minimum acceptable amount, did the requestor accept the funding. Ms. Palmisano explained the programs received funding from other sources and rarely was the funding refused if it was below the minimum request. Vice Mayor Clark asked how much unspent grant funding was there for group home solar installation. She also asked why the organization was awarded the full amount requested if there was unspent funding. Ms. Palmisano said Valley Life was under construction to expand its group homes within Glendale. Funding was awarded in FY2018-2019 and was expected to be completed in May. By the time the new funds were received, the previous funds would be depleted. Vice Mayor Clark said funding needs were high. She was not comfortable spending so much money on solar panels to lower electricity costs. The money could be better spent in other ways. Councilmember Tolmachoff said Community Legal Services had requested $25,479 but the CDAC's recommended amount was $10,000 with a "to be determined" amount of$15,000. She asked how the amounts were determined. Ms. Palmisano explained Community Legal Services historically submitted two applications but this year, the second application for fair housing was not submitted. It was a mandated component of the CDBG so CDAC set aside the $15,000. She said a request for proposals (RFP) had been issued to bring a non-profit that would provide the fair housing component for the City. Councilmember Aldama said the Visual Improvement Program (VIP)was awarded $100,000. He was told the VIP had ended several years ago. He asked if the program was being re-implemented and if so, what was the process. City Council Meeting Minutes-February 26, 2019 Page 7 of 11 Ms. Palmisano said the VIP was within Economic Development's purview and had been an active program for the last 10 to 15 years. The program assisted downtown businesses with exterior improvements that required a 50% match from the owner. Councilmember Aldama requested information on the program be provided to Council. Councilmember Aldama asked if the administration dollar limit was for the City to implement the programs or for the requestor. Ms. Palmisano said it was for the City to fund eight staff members and associated fees. Councilmember Aldama asked if the dollar amounts that paid for City personnel was reflected in the budget. Mr. Phelps confirmed it was. Vice Mayor Clark asked why the Sojourner Center was denied for utilities, transitional housing and legal domestic violence case management. She asked if the City had another program which addressed domestic violence case management. Ms. Palmisano said Chrysalis provided services for domestic violence. Vice Mayor Clark asked if the audit was why Sojourner Center did not receive funding. Ms. Palmisano confirmed it was. Vice Mayor Clark asked if any of the funds could be given to other organizations listed under Public Facilities. Ms. Palmisano said as the final voice, Council had authority to move funding as it saw fit. Vice Mayor Clark wanted to move the funds from Valley Life pertaining to solar panels to any of the four or a combination of the four organizations listed under Public Facilities. Mayor Weiers asked what cost savings would be realized for the instillation of solar panels at a cost of$47,000. Councilmember Tolmachoff asked where the solar panels were installed. Ms. Palmisano said the panels were installed on the residential group homes within Glendale. She did not have cost savings information and would provide it to Council later. The proposal was for installation on one house. Mayor Weiers questioned the allocation. Vice Mayor Clark requested Council deny the request by Valley Life for solar panels and distribute the funds to the four organizations listed under Public Facilities. Councilmember Turner asked for details on CDAC's discussion regarding the Valley Life request. Ms. Small said very few housing-related applications were received compared to public facilities. The CDAC tried to balance physical improvement funds for community projects. City Council Meeting Minutes-February 26, 2019 Page 8 of 11 Councilmember Turner asked if the funds were allocated for housing and could not be used for services. Ms. Palmisano said physical improvement projects funds could not be used for public services. There was a limitation of 15% of the $371,000 available in that category. It could be used as Vice Mayor Clark requested, as long as it fell within a bricks and mortar project. Ms. Small said staff would contact Valley Life for additional information and provide it to Council. Mayor Weiers wanted to know how many residents, rooms, the square footage of the home and other similar information. The utility company could provide an estimate of the cost savings. Councilmember Turner asked if there would be an additional review by the CDAC once the information was received. Ms. Palmisano said the information could be reviewed at the CDAC's March meeting. Councilmember Aldama could not support the line item as the time frame to see cost savings took several years, if at all. He was supportive of reallocating the funds as Vice Mayor Clark requested. Mayor Weiers wanted to give the CDAC an opportunity to provide the information. He did not support the Valley Life funding as it stood. Ms. Small said there was still time for discussion with both the CDAC and Council to meet the HUD deadline. Councilmember Tolmachoff asked if the recommendation for Helping Hands was for building construction assistance. Ms. Palmisano said the $418,924 recommended for Bethany Crossing was to construct a 72-unit apartment complex for sustainable housing which focused on 40%-60% average median income households. She said the amount was a placeholder since the City did not have the funding but if it was granted, it helped to leverage $13 million in Arizona Department of Housing (ADOH) low-income tax credits to add to the $17 million project cost. Ms. Palmisano said Helping Hands had not yet submitted its application for review. It anticipated having the project online in 2020 and the land had been contracted. It would not proceed until it had the necessary funding to purchase the land and fund the construction. If the project did not move forward, the funds would not be allocated and a substantial amendment to the AAP would be done to reallocate the funding. Mayor Weiers asked if a contingency for Habitat for Humanity could be added so the item would not need to come back to Council for approval. Ms. Palmisano said a contingency plan could be added that stated funding would go to Habitat for Humanity if the Helping Hands project did not move forward. Ms. Small wanted Council to be aware of the slow down of Habitat for Humanity projects due to the changes to Maricopa County's regulations. Councilmember Tolmachoff asked if there were two applications for the funding. Ms. Palmisano said two applications were received. City Council Meeting Minutes- February 26, 2019 Page 9 of 11 Councilmember Tolmachoff asked in what order the applications were received. Ms. Palmisano said Habitat for Humanity was received first and Helping Hand was received second. Councilmember Tolmachoff asked if the money could be moved into physical improvements'for other places. Ms. Small said HOME funding source was specific to new construction. Councilmember Tolmachoff did not want to leave other services short and preferred receiving the additional information sooner rather than later. Ms. Small said the status was monitored by staff Councilmember Tolmachoff asked if the project moved forward, how would the property be • managed. Ms. Palmisano said Helping Hands was the construction portion of UMOM and would bring in other organizations to manage the property and support services for residents. Councilmember Tolmachoff asked where the property was located. Ms. Palmisano said the property was located at 69th Avenue and Bethany Home Road, behind the fire station. Councilmember Turner asked what Habitat for Humanity received for funding in the past. Ms. Palmisano said for FY 2018-19 it received $255,000 and averaged between $225,000 and $250,000 over the last ten years. Vice Mayor Clark requested the update be brought back to Council prior to the formal voting action on May 14, 2019. Councilmember Tolmachoff asked for staff to convey Council's appreciation to CDAC. The decision was ultimately Council's responsibility but that did not diminish the CDAC's efforts. CITY MANAGER'S REPORT No report CITY ATTORNEY'S REPORT No report COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Aldama asked for a workshop to provide an A-to-Z of the Visual Improvement Program that included the history, results, fund balances and other pertinent information. Councilmember Malnar asked staff to investigate the ability to divide a census tract within the Sahuaro District to allow eligibility for funding. City Council Meeting Minutes- February 26, 2019 Page 10 of 11 Councilmember Tolmachoff asked for a workshop on the new City of Glendale logo creation process including selection criteria, funding implications and copyright. Councilmember Turner supported Councilmember Tolmachoffs request. Vice Mayor Clark supported Councilmember Tolmachoffs request. Councilmember Aldama supported Councilmember Tolmachoffs request. Mayor Weiers asked for a workshop on the implications to the City with the Arizona Sports and Tourism Authority (AZSTA) changes regarding rental tax. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Vice Mayor Joyce Clark, seconded by Councilmember Lauren Tolmachoff to hold an executive session. AYE: Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner Passed EXECUTIVE SESSION Council entered into executive session at 3:45 p.m. for discussion and or consultation, to consider its position, and to provide instruction/direction regarding the evaluation process and performance reviews of the City Manager, City Attorney and City Clerk pursuant to A.R.S. § 38-431.03(A)(1)(4) and for discussion/consultation with the City Attorney and City Manager to receive an update, to consider its position, and to provide instruction/direction to the City Attorney and City Manager regarding Glendale's position in connection with a contract relating to property in the area of 55th Avenue and Northern Avenue pursuant to A.R.S. §§ 38-431.03 (A)(3)(4)(7). ADJOURNMENT Mayor Weiers adjourned the meeting at 4:02 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 26th day of February, 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 11th day of March, 2019. e K. Bower, MMC, City Clerk • • City Council Meeting Minutes- February 26, 2019 Page 11 of 11