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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 3/19/2019 City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 /El L�LENDf Meeting Minutes Tuesday, March 19, 2019 9:00 A.M. Budget 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 9:00 a.m. ROLL CALL Present: Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Absent: Councilmember Bart Turner (arrived after roll) Also Present: Kevin Phelps, City Manager Michael Bailey, City Attorney Chris Anaradian, Assistant City Manager Julie K. Bower, City Clerk WORKSHOP SESSION 1. FY18-19 MID-YEAR FINANCIAL REPORT Presented by: Vicki Rios, Director, Budget and Finance Lisette Camacho, Assistant Director, Budget and Finance Ms. Bower read the item by title. Councilmember Turner arrived at 9:03 a.m. Ms. Camacho outlined the three sections of the budget review and basis of the analysis: General Fund Special Revenue Funds Highway User Revenue Fund (HURF) Transportation Special Revenue Police Special Revenue Fire Special Revenue Enterprise Funds Water and Sewer Solid Waste Landfill Vice Mayor Clark asked for an explanation of the City Sales Tax Budget FY18-19 of the General Fund in the amount of$112,468,735. Ms. Rios said it was the anticipated budget for the entire fiscal year. Councilmember Aldama asked if there was a fiscal year impact as to when the transportation sales tax funds were expended. Ms. Rios said the funds were carried over into following year if a project was not completed. City Council Meeting Minutes - March 19, 2019 Page 2 of 11 Councilmember Malnar asked why the transportation funds were continuously lower than the expenditure and revenue funds. Ms. Rios said the expenses were reported in the year the work took place. On a multi-year project, the funds were carried over into the following year. Councilmember Turner asked if the previously programmed light rail funds accumulated in the Transportation Fund until new projects were developed. Ms. Rios said the Transportation Master Plan included programming for the funds. Councilmember Turner asked if it was safe to say, based on the increased revenue from City sales tax, that Glendale businesses had experienced increased revenues. Ms. Rios said that was correct. She said all category had performed strongly and did not yet include the holiday season revenue. The upward trend was projected to continue. Councilmember Aldama asked if the Capital Improvement Program (CIP) was too robust for available resources and if additional staffing would be necessary. Mr. Phelps said staff would be providing information within the upcoming budget proposal for discussion. Councilmember Tolmachoff asked why the utility rate increase was not reflected in the revenue. Ms. Rios said, because of the rainfall received, water usage was lower than anticipated, however the projected revenue was on target as was the sewage revenue. 2. FY2019-20 BUDGET WORKSHOP Presented by: Vicki Rios, Director, Budget and Finance Lisette Camacho, Assistant Director, Budget and Finance Amy Lindsay, Budget Administrator, Budget and Finance Ms. Bower read the item by title. Ms. Rios said there would be presentations regarding the draft FY20-29 Capital Improvement Plan (CIP), a financial policy update for consideration and a review of projects by project type. She reviewed the proposed financial policy update. Vice Mayor Clark asked if the original budgeted amount for a project could be increased or decreased at any time. Ms. Rios said it could but per the Cash and Budget Appropriation Transfer Policy, certain factors would be required. Vice Mayor Clark asked for examples that did or did not require Council approval. Ms. Rios said per the policy, if a project was increased using a different type of appropriation that was not in the same fund, it would be brought forward for Council approval. If there was left over appropriation from a project that was to be used within the same fund, it was approved administratively. City Council Meeting Minutes - March 19, 2019 Page 3 of 11 Councilmember Tolmachoff asked what happened to appropriated funds that were not used. Ms. Rios said the example was a single project. The carryover was overestimated so it appeared to have additional funds, but it was one project. Councilmember Tolmachoff wanted to be informed when a project did not expend the allotted funds. Mayor Weiers suggested adding a column to the table which showed over/under amounts. Ms. Rios said the carry over adjustments were necessary to remove the funds so funds were not inadvertently spent. Mr. Phelps said there were benefits in having the administrative ability to transfer funds. Councilmember Aldama suggested an end-of-year report showing whether a project was completed under budget. Councilmember Turner said Council should be aware of the administrative transfers because moving the unused amount to another project meant there was a project that was over-budget. Ms. Rios said that was not the outcome of transferring funds. The way it appeared in the system was incorrect and the only way to make it appear correctly was to bring the item to Council for approval, which could cause delay and made the project appear that it was over-budget. Funds were not transferred to a different project. Councilmember Turner understood the spreadsheet issue, but Council should be informed of the transfer of funds to another project. Vice Mayor Clark said the administrative transfer could be used to adjust the available funds for a project. Ms. Rios said that issue would be addressed when a project's budget was increased. Grant appropriation was not moved out of the account administratively unless funds were being moved to an actual grant. Action to move funds out of the account for a project was always brought to Council for approval. Vice Mayor Clark said the policy took away authority from the Council. She was not in support of the policy. Ms. Rios explained if a grant was accepted by Council, the appropriation was pulled from the miscellaneous grant account and placed in the account where the grant funds were expended. Mr. Phelps said per the policy, contingency funds could not be added to an approved budget amount without Council approval and project savings could not go towards an unapproved project. Ms. Rios said funds from the same department and same funding source could be moved administratively. In Mr. Phelps' example, a contract amendment and appropriation transfer would require Council approval for over-budget contracts. Councilmember Tolmachoff was concerned that Council priorities were not being discussed when funds were moved administratively. Council should make the decision of where funds were appropriated. She asked when the revised policy applied. City Council Meeting Minutes - March 19, 2019 Page 4 of 11 Ms. Rios said the revision did not apply to the example shown. It was only permission, per policy, to carry over appropriation adjustments. Other adjustments were covered within the policy. Vice Mayor Clark expressed concern that there could be unintended consequences with the revised policy. Ms. Rios said the policy language could be changed from "transfer" to "adjustment." Councilmember Turner requested the addition of "within a single project" to the draft language. Ms. Rios asked if Council was comfortable with the language "carryover appropriations within the same project." Mr. Phelps recommended bringing the financial policy update back to the next budget workshop in its final form. Ms. Lindsay provided an overview of the Capital Improvement Program. Vice Mayor Clark asked for the dollar amounts associated with the FY19-20 CIP by funding source. Ms. Lindsay said the total was $128 million and the amounts were as followed: Enterprise Funds - $94.6 million Bonds - $6.2 million Transportation Sales Tax - $7.9 million Pay-as-you-go - $4.2 million Development Impact fees - $7.6 million HURF - $5.9 million Grants - $1.7 million Vice Mayor Clark asked if there would be an opportunity to bring the CIP topic back to workshop for Council discussion. Ms. Rios said there was a workshop scheduled for follow-up items. Trevor Ebersole, Director of Transportation, gave an update on the projects that had been completed or were in-progress at the airport. Vice Mayor Clark assumed the airport projects were prioritized which included the overlay of the taxiway. Mr. Ebersole said it was a priority and the asphalt at the airport needed to be addressed. Vice Mayor Clark asked if the projects were prioritized, submitted to the Federal Aviation Administration (FAA) and the FAA grant-funded several projects for the year including the taxiway project. Mr. Ebersole said that was correct. Vice Mayor Clark appreciated the 5 years of information but felt the discussion should focus on the next year to make proper use of time. Mayor Weiers asked if it was correct that nothing needed to be done until it was mandated by the City Council Meeting Minutes - March 19, 2019 Page 5 of 11 FAA. Mr. Ebersole said that was correct. Mayor Weiers said Council needed to have the information for all 5 years to prioritize. Mr. Phelps said it was a best practice to look at a 10-year plan with focus on the next 5 years for funding. It was possible to focus on the next year only, but it could bring up difficulties on split year projects. The focus was on the upcoming FY 2019-2020 budget. Councilmember Turner asked what was the largest source of revenue at the airport. Mr. Ebersole said the majority was received from the FAA. The local revenue was generated from tenants and covered most of the operations and maintenance costs. The transportation sales tax and the General fund contributed approximately $50-$100,000 annually towards airport operations. Mayor Weiers said state funding also contributed to the airport operations. Mr. Ebersole said that was correct Councilmember Aldama requested that departments provide an explanation of whether requests were mandated and if the work was preventative maintenance or a new project. He asked if any of the projects in the airport CIP was a result of deferred maintenance. Mr. Ebersole said the projects were ongoing projects required by the FAA . Vice Mayor Clark asked if$143,000 was the total budget for the Arts Fund. Ms. Rios said there was contingency in the Arts Fund to pull funds to purchase artwork as a project. Vice Mayor Clark said it was important to know the contingency balance. Ms. Rios said the fund was restricted and would not be used to fund other expenses. As of the last fiscal year, there was approximately $836,000 in the fund. David Beard, City Engineer, provided an overview of the Drainage CIP. Michelle Woytenko, Facilities Director, provided an overview of the Facilities CIP. Councilmember Aldama asked for information regarding the City Hall project. Ms. Woytenko said in FY 2020-2021, $366,000 was budgeted for the design portion of the project with construction costs in the subsequent years. Councilmember Tolmachoff asked if the Camelback Ranch Maintenance Reserve funds were for future capital needs. Ms. Woytenko said because of the capital replacement requirements identified the previous year, it was increased to $1.673 million. Although a specific amount was not set in the contract, the City was obligated to maintain the capital needs of the facility. It was the identified amount to maintain the facility on an annual basis. City Council Meeting Minutes - March 19, 2019 Page 6 of 11 Mayor Weiers asked if there were funds set aside for the landfill closure and upkeep. Ms. Woytenko said an annual report was submitted to the Arizona Department of Environmental Quality providing information on the financial requirements to maintain the landfill. In the last 35 years of the landfill's life, a fund balance was built to cover the maintenance cost once it was closed. Ms. Camacho said the liability was determined and recorded annually. Councilmember Tolmachoff asked why the Prosecutor's Office remodel figures were not included in the CIP report. Ms. Rios explained the CIP report showed changed project figures and nothing on the Prosecutor's office project had changed. Vice Mayor Clark said, according to the report, the Prosecutor's Office project would not change for two years. Ms. Woytenko said the funding change was not identified for the Prosecutor's Office. Staff planned to discuss potential project funding with the public safety renewals through the General Obligation (G.O.) Bonds. Vice Mayor Clark asked how much funding was available under the public safety renewal. Ms. Rios said it was just over $9.5 million. Vice Mayor Clark asked while a long-term solution for the Prosecutor's Office was developed, did staff have a temporary solution. Ms. Woytenko said the plan would be brought forward at a future workshop. Councilmember Turner asked what the projected lifespan of the landfill was. Ms. Woytenko said there were approximately 50 years of life remaining under the existing permit. Councilmember Turner asked if there was a potential to expand the landfill within the City-controlled land. Ms. Woytenko said there was potential. Councilmember Turner asked why the landfill bulldozer replacement was moved out by two years. Ms. Woytenko said equipment was evaluated annually and with the purchase of a smaller bulldozer, it allowed a 2-year deferment of the large bulldozer. Councilmember Tolmachoff said, according to the report, funds were not allocated to the Prosecutor's Office until FY 2021-2022. Ms. Rios said the funds were in the G.O. bond worksheet but were mistakenly not included in the CIP report. She said there was funding in the next fiscal year and the figures would be updated. Vice Mayor Clark asked if there were plans to repurpose the closed portion of the landfill. Ms. Woytenko said there were plans to repurpose the area for compatible recreational use. The City Council Meeting Minutes - March 19, 2019 Page 7 of 11 full closure plan would not to be completed for at least 5 years. Mr. Beard provided an overview of the parking lot projects within the CIP. Ms. Woytenko said a new project was added to maintain/repair City parking lots and parking garages. Councilmember Aldama asked if the Velma Teague Library provided technological resources that were comparable to the other City libraries. Stephanie Small, Community Services Director, said libraries had the best technology that could be provided in each environment. New opportunities were brought forward during budget discussions to make advancements and were as equitable as possible. Councilmember Aldama asked staff and Council to consider moving up the Velma Teague renovations to modernize the facility. Ms. Rios said, with regard to Vice Mayor Clark's question regarding funding for the public safety remodels, there was $800,000 budgeted next year and $7.5 million the following year for a total of $8.3 million. Vice Mayor Clark asked if the $800,000 was for the consultant design portion or temporary housing. Ms. Woytenko said the amounts were placeholders while the plan was developed. James Burke, Public Facilities, Recreation and Public Events Director, provided an overview of the parks projects within the CIP that were completed or in-progress. Vice Mayor Clark asked what was encompassed by the category "Park Amenity Upgrades" in the amount of$229,881. Mr. Burke said it was for development impact fee (DIF) projects in the center of the City. It was to increase capacity in the parks for new growth. It would add, for example, an element such as a ramada to a park. Councilmember Tolmachoff asked if the Skunk Creek Wash was allocated only by parks or were the expenses shared. Ms. Rios said it was a one-time expense with ongoing funding within the Parks operating budget. Councilmember Tolmachoff asked if any other department shared responsibility since it was flood control. Ms. Rios said it was an operational issue. If the project was shared, there was no true ownership of the project, so the funding was given to Parks for responsibility of the maintenance. Councilmember Tolmachoff asked if there was a way to share the ongoing cost of$194,500 per year. Ms. Rios said the Engineering department assisted with structural issues outside of general clean-up. Councilmember Tolmachoff disagreed with it being funded from the Parks budget and believed City Council Meeting Minutes - March 19, 2019 Page 8 of 11 there should be further Council discussion. Ms. Rios explained the funds were from the General Fund and there was no outside funding source for the maintenance of the wash. Council approved the $194,500 increase to the Parks budget last year to cover the maintenance of the wash. Councilmember Aldama asked what the $90,000 in funding for O'Neil Park encompassed. Mr. Burke said the $90,000 was for the design of a splash pad. When the design was completed, capital funds from the following year would be brought forward to begin the capital improvements at an estimated cost of$700,000. Mr. Phelps explained the $90,000 was the first phase which consisted of a design for a splash pad. The capital budget still needed to be identified based on the project's scope before it moved forward. Councilmember Aldama asked the Council to prioritize O'Neil Park to be funded immediately. Councilmember Tolmachoff asked if the reason some of the park projects were expedited was to be able to use DIF funds that were about to expire. Mr. Burke said that was correct. Councilmember Tolmachoff supported Councilmember Aldama's request. Councilmember Aldama said the Ocotillo District was not developing, so it did not receive DIF funding. Ms. Woytenko provided an overview of the public safety CIP projects that were completed or in-progress. Mayor Weiers asked if there had been any discussion about adding a ladder truck due to the City's growth. Fire Chief Terry Garrison said most fire departments were moving away from ladder trucks. The department currently had bucket-type ladders for fire fighter safety. He felt the equipment in use was adequate. Vice Mayor Clark asked if there were plans to increase the number of low acuity units and what was the status of high acuity units. Chief Garrison said there were ongoing discussions for future deployments and high acuity units. Staff was conducting research on how to provide the best service to customers if a high acuity unit was utilized. Councilmember Tolmachoff asked what the fleet replacement policy was for a fire truck. Ms. Woytenko said the useful life of front-line engines was 7 years or 100,000 miles and 15 years or 100,000 miles for ladder trucks. She said as long as the parts could be maintained. the useful life could be extended to 15 years. Councilmember Tolmachoff asked if there was an engine to be replaced in the next fiscal year. Ms. Woytenko said a ladder truck was being replaced. City Council Meeting Minutes - March 19, 2019 Page 9 of 11 Ms. Woytenko provided an overview of the solid waste CIP projects that were completed or in-progress. Mr. Ebersole provided an overview of the streets CIP projects that were completed or in-progress. Mayor Weiers asked for the timeline of completion for each segment of Ballpark Boulevard. Mr. Ebersole said all four segments were on track to be completed by February 1st, 2020. Councilmember Tolmachoff asked for the project cost. Ms. Rios said the appropriations had been identified for the projects but the actual costs would not be known until bids were awarded. Councilmember Tolmachoff asked if the right-of-way was purchased or dedicated. Mr. Beard said the property was to be dedicated to the City at no cost. Councilmember Tolmachoff asked if any costs would be recaptured with future development of the area through development fees. Mr. Phelps said it would be a large economic development area and would generate significant capital improvements. Mayor Weiers asked if the project consisted of a two-lane road in both directions. Mr. Phelps said it would be a full five lanes when the project was completed. Councilmember Malnar asked if the street pavement program was continuing in the next fiscal year with funds and additional crews. Mr. Ebersole said it would continue with Council consent. Councilmember Tolmachoff asked why the bus pull-out funding was removed for the next three years. Mr. Ebersole explained there were two projects. Bus stop enhancements, which added amenities such as shelters and ADA ramps. The other was bus stop pull-outs which provided buses with a parking bay off the road to access the actual bus stop. He said staff was working with Engineering to develop bus stop enhancements where needed. Councilmember Tolmachoff asked when the pull-outs would be added if there was no funding. Mr. Ebersole said if Council identified the bus pull-outs as a priority, it would be added to the Transportation CIP and expedited. Councilmember Tolmachoff asked where the additional funding was coming from for Ballpark Boulevard. Ms. Rios said the funding came from the Transportation Sales Tax fund balance. Councilmember Tolmachoff asked if projects had been eliminated to fund Ballpark Boulevard. City Council Meeting Minutes - March 19, 2019 Page 10 of 11 Ms. Rios said funding came from contingency and unprogrammed DIF from Water and Sewer that were identified for the project. Mr. Ebersole said there were no Transportation projects delayed as a result of Ballpark Boulevard. Mayor Weiers asked for a prioritized list of identified areas for bus pull-outs for the Council to review. Mayor Weiers asked if the cost of bus pull-outs on Ballpark Boulevard would be the responsibility of the developers. Mr. Ebersole said that was correct. Councilmember Turner asked what the anticipated draw down was for the Transportation Sales Tax fund balance. Ms. Rios said it was approximately $4.4 million and $1.4 million for HURF. Craig Johnson, Water Services Director, provided an overview of the water/wastewater CIP projects that were completed or in-progress. Mayor Weiers asked if a liner would be installed for the sludge line. Mr. Johnson said the liner was one of three options. The other two options were complete replacement or a combination of liner and replacement. A final decision had not been made but it would likely be a liner replacement. Mr. Phelps reminded Council that over the next 5 years, Water Services would expend $229 million for several projects. ADJOURNMENT Mayor Weiers adjourned the meeting at 11:59 a.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 19th day of March, 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 15th day of April, 2019. o AlOr e K. Bower, MMC, City Clerk City Council Meeting Minutes - March 19, 2019 Page 11 of 11