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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 8/27/2019 (3) City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 (47 Glendale ARIZONA Meeting Minutes Tuesday, August 27, 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 ' Y CALL TO ORDER Vice Mayor Clark called the meeting to order at 12:31 p.m. ROLL CALL (Councilmember Malnar attended via telephone.) Present: Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner Absent: Mayor Jerry Weiers Also Present: Kevin Phelps, City Manager Michael Bailey, City Attorney Julie K. Bower, City Clerk Chris Anaradian, Assistant City Manager Vicki Rios, Assistant City Manager WORKSHOP SESSION 1. COUNCIL ITEM OF SPECIAL INTEREST— DOWNTOWN GLENDALE SPECIAL EVENT SEASON FY20 Presented by: Jim Burke, Director, Public Facilities, Recreation and Special Events Heidi Barriga, Special Events Administrator Ms. Bower read the item by title. Mr. Phelps provided a brief background on the topic. Yvonne Knaack, Downtown Strategic Leadership Group (DSLG), said the working group was formed by the Chamber of Commerce pursuant to its contract with the City. She provided a brief description of the group and its members. Ms. Dawn Albright, DSLG, presented information on: •The mission, vision, and purpose of DSLG - to serve as the liaison between the Chamber and all stakeholders by providing pathways and leadership for the success of the downtown community. •The group was formed in June 2018 and met a minimum of one time per month. Councilmember Aldama asked for clarification of the private policy statement in the guidelines. Ms. Knaack said the group wanted people to feel comfortable when sharing opinions. All decisions made by the group were shared at the monthly meetings with the merchants. Councilmember Aldama asked if a decision could be changed if merchants were not supportive. City Council Meeting Minutes -August 27, 2019 Page 2 of 11 Ms. Knaack said once a consensus was reached, it was pretty much set, but if a large majority of the merchants disagreed, the group was open to re-evaluation. Most of the merchants were on the same page of moving forward. Councilmember Aldama counted 16 individuals on the committee and asked if those members would guide and bring the ideas to the Council. Ms. Knaack said that was correct. Ms. Albright said the monthly downtown merchant meetings were significantly impactful and anyone could make a comment or recommendation. Members of the DSLG made themselves available to the merchants. Consensus and data was used to make decisions, not emotions. Councilmember Aldama asked for assurance that ideas could be born at the merchants meeting and would go to the leadership for conversation and potential consensus. Ms. Albright said that was correct. Another reason for confidentiality was that the members could be sharing information regarding revenues. The policy was not meant to keep things secret. Councilmember Tolmachoff asked if all the participants on the list were able to vote, or just the businesses. She noted there were City staff members on the list. Ms. Albright said only members were allowed to vote. The staff and Chamber representatives facilitated the discussion but did not vote. Councilmember Tolmachoff wondered if the confidentiality policy was the reason that Council was not aware as it went through the budget process of the proposed changes in reallocation of taxpayer resources. Ms. Knaack said it was not due to confidentiality. Mr. Phelps had received a letter from the DSLG on June 28th, which was after the budget discussions had been completed. It was a timing issue in being able to speak to Council. Councilmember Tolmachoff said the presentation indicated the conversation was ongoing in February, March and April, during the budget cycle. The budget contained status quo for downtown events. She was not opposed to changes but taxpayers expected Council to be aware of the budget. Council was unaware of the changes being proposed until after it had approved the budget. Ms. Albright said there was some education necessary for the leadership group regarding how the budget worked on a fiscal year rather than a calendar year. Councilmember Tolmachoff said it was not the group's responsibility to inform Council. She was open to making changes because something different needed to be done downtown but would have liked to have known the conversations were taking place. Ms. Knaack was not aware the events were line items and had thought it was just part of Special Events. She encouraged Councilmembers to attend merchant meetings on the second Tuesday of each month and noted Councilmember Turner attended the last meeting. It would be helpful for Council to see the flow of the meeting. Mr. Phelps said the approved budget was locked in by the first week of April. At that time, the DSLG was not ready to state the direction in which it wanted to go. He said what was currently in City Council Meeting Minutes -August 27, 2019 Page 3 of 11 the budget could still be followed. He did not receive the final recommendation from the DSLG until June 28th and Council was on recess the entire month of July. If Council had discomfort with some of the recommendations, Council did not have to make the changes. He felt the group had a very good plan for the FY20 season. Councilmember Turner appreciated the commitment of the group and asked how members were appointed. Ms. Knaack replied the members were selected by the downtown manager. Ms. Albright said most downtowns had similar groups. Councilmember Turner asked if the DSLG meetings were publicly advertised, open for the public to attend, and if minutes were taken. Ms. Albright explained it was a closed meeting. Information from the meeting was shared at the monthly merchant meetings. The minutes were not formal because of confidentiality but a recap of each meeting was prepared. Councilmember Turner appreciated the notion of privacy and confidentiality regarding the merchants' receipts, staffing, etc. The group was designed to take action or make recommendations on the downtown and open meeting requirements should apply because the outcome could be public policy. He said the guidelines for membership, such as "must be a team player with a positive outlook" or"there must not be conflict with the Chamber or the City," were subjective. Councilmember Turner had attended the downtown business meeting. He liked that the group was getting together and visioning but was taken aback when it was announced at the meeting that the Chocolate Affaire would not occur in 2020. Council had budgeted for it. It did not appear that the DSLG was advisory because it had made the decision on the event. He had requested the Item of Special interest because he was concerned and was bothered that the discussion would not have occurred if he had not asked for it. The downtown businesses had already been told that the Chocolate Affaire was not occurring. Council was not informed as early as possible that there might be changes and specifically about the Chocolate Affaire. Ms. Albright said the group was not a public entity and was not City-driven.lt was a private group of stakeholders to provide consensus to the City. The group was trying to move consensus and progress. Councilmember Turner appreciated the work the group was doing, that the downtown merchants were meeting, and did not blame the DSLG for what had happened. He wanted clarification regarding the authority over the budget. Councilmember Aldama said Council supported downtown Glendale and there was no intention or desire to end the leadership group. Council had a contractual agreement with the Chamber for the downtown manager position and the DSLG was a sub-division of that which represented tax dollars. When a recommendation to reallocate dollars was made, it required a public meeting. He did not understand why the DSLG meetings were not public. Councilmember Aldama did not know who implied the leadership group had the ability to reallocate budget funds. He recommended that Council provide Mr. Phelps with items that the leadership group could discuss and provide consensus to be brought back to Council. The Chocolate Affaire could be changed, but he opposed ending the event. City Council Meeting Minutes -August 27, 2019 Page 4 of 11 Ms. Knaack said the group was providing recommendations to the City regarding events in the budget. Vice Mayor Clark was concerned that the DSLG presenters came forward with strategy and recommendations and were not being supported. Change was difficult. She appreciated that the group came forward to talk to Council and applauded its efforts despite the criticism. Councilmember Aldama disagreed that the group was treated harshly. Councilmembers were talking about procedures that were not in place or that Council was not aware of. It was the time for public discussion. Ms. Barriga provided information on the following proposed changes to the budget for the downtown festivals: •Approved FY20 budget, which included Glendale Glitters Spectacular Weekend, December Weekend, Glendale Glitter 8, Glow, Glendale Chocolate Affaire • Dates for the proposed season • Proposed changes • Discontinuation of Chocolate Affaire •Addition of April Music in 2020 in the Amphitheater—four weekends • Budget impacts and Reallocations Ms. Barriga said bringing back the shaped balloons for the Glow event had been recommended. Councilmember Turner asked whether there was a cost for the shaped balloons, as opposed to the other balloons. Ms. Barriga said there was a cost. Councilmember Tolmachoff highlighted the footnote on the budget indicating that the proposed changes did not include costs such as staff, transportation, public safety, sanitation and EMS. She asked for an estimate of the costs for the four weekends in April or Glendale Glitters. Ms. Barriga said there was not an estimate for the costs. Councilmember Tolmachoff said the costs should to be considered because costs would increase and should be accounted for. Ms. Rios would provide the numbers to Council. She said the April event would not be as highly trafficked and there would be no street closures. Councilmember Turner said Council was being asked to eliminate the Chocolate Affaire without seeing a list of what was working and what was not. It was an event that had a positive connection to the City and was one of the major tourist attractions in the downtown area. He had not received any feedback from residents that the Chocolate Affaire was unsatisfactory and was not aware of the reason for elimination of the event. Councilmember Turner said the change would bring events to downtown in April but eliminate an event in February. He referenced last year's bad press about the cancellation of Glendale Glitters. The Chocolate Affaire was a successful family-oriented event. Mr. Phelps said the discussions with the downtown merchants regarding Glendale Glitters was that the most successful weekends in December were the closed weekends. Over $1.2 million was invested in downtown annually yet there was a higher downtown vacancy rate than when he City Council Meeting Minutes - August 27, 2019 Page 5 of 11 began his employment with Glendale in 2016 and any measurable downtown performance metric had declined. Any time there were street closures in downtown, which occurred during the Chocolate Affaire, it cost a significant amount of money. Mr. Phelps had met with staff from the Cerreta Candy Company and had explained that the Chocolate Affaire did not have to be completely eliminated but possibly changed. There had been discussion about the possibility of the City providing use of the Civic Center. It would be a temperature-controlled venue and would be better for chocolate. Councilmember Turner stated that the downtown merchants were told the Chocolate Affaire was canceled for next year. Mr. Phelps said staff was looking at available 2020 dates for the Civic Center. He believed there was availability on one of the two preferred weekends. He was trying to help the downtown merchants do something different and move forward but the status quo could be maintained at Council's direction. Councilmember Tolmachoff reiterated the responsibility of notifying Council was not the downtown group's responsibility and Council should have known the discussions were taking place. She asked if there was discussion about using the Chocolate Affaire to kick off the April music weekends. Ms. Albright said the group recognized the events were longstanding and there was an emotional connection, but the feedback on the event was not good. April was selected in order to gauge the economy and commerce during a warmer month. Councilmember Tolmachoff had not received any negative feedback for the Chocolate Affaire and asked why it would not be leveraged in with the proposed April events. The Chocolate Affaire received a good amount of publicity. Mr. Phelps said there was significant investment needed for the music events. The decision was based on how to invest dollars in a different strategy that would do better than the Chocolate Affaire had done. Councilmember Tolmachoff asked if the $90,000 for the April music events would cover the costs for all four weekends. Mr. Phelps said it would cover all four weekends. Ms. Knaack said the much-loved jazz & blues festival had been canceled during the recession. The proposed April music festival could fill that gap and would have other genres of music. Councilmember Hugh said Council needed to be flexible when listening to the business leaders' recommendations. The City paid for the Chocolate Affaire's publicity. Using the amphitheater was a great idea and reinforced that Glendale was exploding as an entertainment district with Westgate and north Glendale. Downtown was having issues and it would be a great idea to use the Civic Center for the Chocolate Affaire. He favored more events in downtown. Councilmember Turner said right-sizing the Chocolate Affaire should be looked at, and he supported the possibility of having it at the Civic Center. He did not want the downtown group to feel it was being attacked. Councilmember Aldama supported the group's strategic plan to add more events to the downtown on a regular basis. He did not support ending the Chocolate Affaire and recommended Council City Council Meeting Minutes - August 27, 2019 Page 6 of 11 discuss redeveloping the event rather than ending it. Ms. Albright said re-branding downtown would take big, bold moves. She offered to share the data and information on how the group reached its consensus. Vice Mayor Clark said Councilmember Malnar had lost telephone connection but had let her know that he would like to see the group continue its work to improve the downtown. Councilmember Hugh would like to see more events at the Civic Center throughout the year. He appreciated all the hard work done. Vice Mayor Clark supported Councilmember Tolmachoffs suggestion to leverage the Chocolate Affaire. She said the downtown business owners were invested in downtown. Mr. Phelps stated if it was Council's preference to delay the cancellation of the Chocolate Affaire for a year, the festival could take place next year. If Council also wished to proceed with the April music events, staff would have to find the funds from elsewhere and make a proposal to Council. The positive metrics of the Chocolate Affaire were excellent media coverage, event tradition and large crowds. He explained the metrics that should be focused on were vacancy rate, sales tax growth or reduction and how much private investment was in downtown. The recommendation was to hit the latter metrics. Councilmember Tolmachoff asked if the Civic Center was available for the Chocolate Affaire. Mr. Phelps said the Civic Center was available on one of the preferred weekends. Councilmember Tolmachoff asked if the Chocolate Affaire could be scaled back and held in the Civic Center. Funds could be shifted to accommodate both the Chocolate Affaire and the April music events. Councilmember Aldama requested that staff provide the data which showed the pros and cons of the event and how the event was or was not successful. He agreed with Councilmember Tolmachoffs recommendation. Mr. Phelps was not implying the event was not successful. There was no other city in Maricopa County that invested the same amount of money in its downtown and the overall strategy had not gotten the City to where it wanted to be. He would follow up on the recommendation to have the event at the Civic Center. Councilmember Hugh supported moving the Chocolate Affaire event to the Civic Center. Councilmember Turner agreed with right-sizing the event as necessary and supported the idea of having it at the Civic Center. He said process mattered. Vice Mayor Clark asked for consensus on accepting December Friday and Saturday Nights, Glitter& Glow, and April music events, and reallocating the $15,000 for Addition to Special Events and the $20,000 for Arrowhead Towne Center and Westgate for a Chocolate Affaire at the Civic Center. There was Council consensus. City Council Meeting Minutes -August 27, 2019 Page 7 of 11 2. REVIEW AND DISCUSS POTENTIAL SALE OF GLENDALE MEMORIAL PARK CEMETERY Presented by: Chris Anaradian, Assistant City Manager James Milanese, Engineering Administrator Ms. Bower read the item by title. Mr. Anaradian said the topic was a follow-up to the questions raised at the August 13, 2019 workshop discussion. He provided a presentation that included information on the equipment included in the sale. Councilmember Turner reported that a resident researched the equipment and arrived at a total value of approximately $55,000. Mr. Anaradian did not have figures at hand, but felt the estimate was not unreasonable. Ms. Rios said the City could dissolve the Perpetual Care Fund. It had been created by ordinance and could be dissolved similarly. Mr. Anaradian said the purchase agreement would provide language to ensure the care of the cemetery and there would be a reversionary clause for the City to step in if the buyer was unable to manage the property. Vice Mayor Clark stated another concern was to ensure the cemetery always existed. It was Council's unequivocal public commitment to retain the Glendale Memorial Park Cemetery as a cemetery perpetually, but future Councils might not be bound by that intent. It was very important to state it publicly and include language in the agreement that it was incumbent upon the City to keep it perpetually as a cemetery. Mr. Bailey said the land was deed restricted and could only be used as a cemetery. It was how the City received the property and was how it would be sold. Vice Mayor Clark said the information that the property was deed restricted as a cemetery was very important. The information should assuage the concerns of the public. Councilmember Tolmachoff believed there would be a revisionary clause if the operator would no longer be able to operate the cemetery and that the City would have an opportunity first to regain operations at the cemetery. Mr. Bailey said there would be such language in the agreement. A private operator was very heavily regulated by the state. He noted to the extent the state might bring in someone to operate the cemetery, language would be included that if the proposed operator was no longer able to operate it, the City would step in to operate the cemetery. Mr. Anaradian provided details regarding the valuation of the purchase price of$100,000 and the savings of the operational costs to the General Fund. Ms. Rios said the City could invest the Perpetual Fund in a manner similar to how a private cemetery owner was allowed, but it would require additional investment by the City. It would increase staff expenses because a professional investment advisor would have to be hired. She provided data on the suggested rate of return on Perpetual Care Funds and the fund balances needed at different rates of return to achieve a return of$200,000.00 annually. Mr. Anaradian said the staff recommendation was to sell the cemetery. City Council Meeting Minutes - August 27, 2019 Page 8 of 11 Councilmember Tolmachoff asked what the cost would be to hire a manager for the Perpetual Care Fund. Ms. Rios estimated it would be 1% to 3% of the fund per year. Councilmember Turner said Council was told there were three options for the cemetery, however, the Johnson Consulting report had four options. The fourth option was for the City to retain the cemetery and enter into a management agreement with an operator. The Johnson Consulting report recommended keeping the cemetery and running it as if it was a commercial operation. Councilmember Turner said the contract was on tonight's agenda for approval, but Council had not yet seen the contract as requested. He asked if the intent was to vote on the contract this evening. Mr. Bailey said the buyers had requested a continuance of the item in order to work out some details and for sufficient review. It could not be acted on this evening. Vice Mayor Clark said the original sales agreement from 1962 did not prohibit the City from selling the cemetery. Mr. Bailey said there was no prohibition against the City selling the property, but it had to remain a cemetery because of the deed restriction. Vice Mayor Clark said the Perpetual Care Fund was established by ordinance in 1985. If the City sold the cemetery, the 1985 ordinance was no longer applicable. Mr. Bailey said that was correct. Any ordinances regarding the cemetery would be repealed. Councilmember Turner said there was the potential to recoup $2 million from the Perpetual Care Fund account, which could be re-purposed for the benefit of all Glendale taxpayers. He liked Vice Mayor Clark's proposal of a heritage fund to be used for recreation, parks, or historic preservation. He supported establishing a Glendale Heritage Fund. It could be used as matching funds to create something lasting for the community. Councilmember Tolmachoff agreed that the $2 million should not disappear into the General Fund, but rather as a legacy in the City or as a heritage fund. Vice Mayor Clark recommended the discussion be a Council Item of Special Interest after the sale. Mr. Phelps said the proceeds would remain in the City's overall fund balance until Council provided direction. CITY MANAGER'S REPORT No report CITY ATTORNEY'S REPORT No report City Council Meeting Minutes - August 27, 2019 Page 9 of 11 COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Turner requested an update on the Human Relations Commission's survey. Councilmember Turner requested an item regarding adopting, as a formal, official policy, the "one ask, tell all" practice whereby if one Councilmember asked a question, all members were provided with the answer. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Bad Turner, seconded by Councilmember Lauren Tolmachoff to hold an executive session. AYE: Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Lauren Tolmachoff Councilmember Bad Turner Other: Mayor Jerry Weiers (ABSENT) Councilmember Ray Malnar (ABSENT) Passed EXECUTIVE SESSION Council entered into executive session at 3:09 p.m. to meet with the City Attorney for legal advice, discussion and consultation regarding the City's position in pending or contemplated litigation, including settlement discussion conducted in order to avoid or resolve litigation pursuant to A.R.S. § 38-431.03(A)(3)(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 95th Avenue and Glendale Avenue pursuant to A.R.S. §§ 38-431.03 (A)(3)(4)(7). A motion was made by Councilmember Lauren Tolmachoff, seconded by Councilmember Bart Turner to adjourn the executive session. AYE: Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Lauren Tolmachoff Councilmember Bart Turner Other: Mayor Jerry Weiers (ABSENT) Councilmember Ray Malnar (ABSENT) Passed Vice Mayor Clark adjourned the executive session at 3:56 p.m. ADJOURNMENT Vice Mayor Clark adjourned the meeting at 3:56 p.m. City Council Meeting Minutes-August 27, 2019 Page 10 of 11 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 27th day of August, 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 12th day of September, 2019. I° Ju '- • . Bower, MMC, City Clerk City Council Meeting Minutes-August 27, 2019 Page 11 of 11