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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 9/10/2019 City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 Glendale ARIZONA Meeting Minutes Tuesday, September 10, 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 Bart Turner Also Present: Michael Bailey, City Attorney Julie K. Bower, City Clerk Chris Anaradian, Assistant City Manager Vicky Rios, Assistant City Manager WORKSHOP SESSION 1. GILA RIVER ARENA FISCAL YEAR 2018-2019 OVERVIEW Presented by: Vicki Rios, Assistant City Manager Guest Presenter: Chuck Steedman, AEG Facilities, Chief Operating Officer Dale Adams, AEG Facilities, Gila River Arena General Manager Ms. Bower read the item by title. Mr. Adams presented the business summary overview as of the end of the 2019 Fiscal Year and highlighted goals of profitability, programming, positive industry experience and industry relations. Mr. Adams reported that based on FY2018-19 revenues, expenditures and net income, the anticipated return to the City of Glendale was $1,669,660, which was $769,671 over budget. Vice Mayor Clark noted there were 43 hockey games and 3 ASU hockey games. She asked if these were in addition to the other 177 hockey games. Mr. Adams said that was correct. There was a total of 223 games during the year. Vice Mayor Clark said hiring AEG was one of the smartest moves Glendale had made and was very pleased with its excellent work. The level of cooperation with the City and other partners was most impressive. Councilmember Tolmachoff stated the Council was given a tour of the facility in early May. She was impressed with the hospitality of the staff and its concern for the guest experience. Councilmember Turner noted the variety of events at the arena, the increased number of concerts and major events and the attention to security. The $1.6 million of revenue-sharing for FY18-19 reduced the management cost to $4 million. The previous contract was $9 million. It resulted in taxpayer savings of$5 million per year. He asked about any perceived impact when the freeway around South Mountain opened. Mr. Adams anticipated the connection between the east and west side would make a big City Council Meeting Minutes- September 10, 2019 Page 2 of 8 difference. It would make things easier and would help the growth of the west side. Mr. Adams said arena staff were fans of the team, the City and the arena. It worked as a family which made the operation very successful. Councilmember Aldama said $1,669,660 was a promise made and a promise kept and money back to the taxpayers. Mayor Weiers said AEG had been an incredible partner in both perception and execution. 2. POTENTIAL GENERAL OBLIGATION BOND ELECTION AND FORMATION OF A BOND COMMITTEE Presented by: Vicki Rios, Assistant City Manager Lisette Camacho, Interim Director, Budget and Finance Ms. Bower read the item by title. Ms. Camacho presented information on the following: • General Obligation Bond (G.O.) overview • Projects identified for G.O. Bond funding FY19-20 Vice Mayor Clark asked if situations could arise which could alter the fiscal year bond appropriation expenditure in the out years. Ms. Rios said that was correct. It was a 10-Year projection of the Capital Improvement Plan (CIP) that was updated annually. Funds had been appropriated for FY19-20 and later years could change. Vice Mayor Clark said there were items missing from the CIP, such as major renovations at Foothills Recreation &Aquatics Center (FRAC), Rose Lane Pool and construction of an aquatic center at Heroes Park. She did not think the current CIP would hold up over ten years. Ms. Camacho explained the $186 million included the projects for FY20-21 and FY21-22. Ms. Rios said the purpose of the discussion regarded where bond authority might be needed. Beyond the ten-year projection, there was a possibility that the issuance of more than $175 million would be necessary if there was capacity. As projects were completed and more were added to the CIP, the CIP would be updated. A second bond election might be required. Vice Mayor Clark asked when the last bond election was held. Ms. Camacho said the last bond election was in 2007. Vice Mayor Clark wanted to ask voters to approve enough authorization to cover major projects not currently being discussed but would be upcoming. If bond elections were not held often, the City would not have the capacity for the projects. Ms. Rios said if the Council chose to form a bond committee, the committee would look at the suggestion. She said more or less bond authority might be needed, which was one reason for establishing a bond committee. Vice Mayor Clark said there was no funding for an expansion of Heroes Park Library. She wanted to know if the only projects discussed with the committee would be those on the list and City Council Meeting Minutes - September 10, 2019 Page 3 of 8 when Council would have an opportunity to suggest additional projects for consideration by the committee. Ms. Rios said staff could speak with the committee regarding additional needs. The CIP would be updated through the budget process. Additional parks or library facility projects could be incorporated. Council was always a part of the process and staff would not go to the bond committee without input from the Council. Councilmember Aldama concurred with Vice Mayor Clark that projects needed to be added to the out years. He wanted Council consensus on additions or removals from the spreadsheet. There was $90,000 in the CIP for design of the O'Neil Park splash pad but nothing in the out years for the actual project. Ms. Rios said during last year's process, there was $10.5 million identified in FY21-22 through FY24-25, for a general park infrastructure project. Part of the funds from that line item would be allocated to projects such as O'Neil or Heroes Park. As the park and facilities assessments were completed, the strategy would be to move the funds from the placeholder and identify specific projects for allocation. Vice Mayor Clark asked who would make the recommendations based on the assessments, staff or Council. Ms. Rios replied that Council would have received the assessments and a workshop would be held to review and discuss. Mr. Anaradian said staffs role was to give information to Council in order to make informed decisions. Staff used the data from the assessments to categorize as critical, medium or low and to make recommendations to Council. Vice Mayor Clark requested Council be provided with the direction or criteria that was provided to the consultants conducting the assessments as it would determine part of the outcome. Mr. Anaradian said the consultants were provided with a scope of work. Council would be provided with the information. Mayor Weiers said it was important that Council had an opportunity upfront to provide input on the needs and wants instead of at the end. Ms. Camacho presented information on debt limits and debt service capacity. Vice Mayor Clark asked if the City would have the capacity to issue more debt in 2023. Ms. Rios said the City would have capacity. Ms. Rios said capacity was approximately $175 million but staff did not recommend issuing the entire $175 million in a single year because the City could not complete that amount in a year. She recommended issuing $70 million in FY2021-22, $50 million in FY22-23, $30 million in FY23-24 and $25 million in FY24-25. The reduction in debt service payments was the reason for the capacity of$175 million. Vice Mayor Clark asked if staff would be comfortable with Council recommending $70 million in projects slated to begin in FY2021-22. Ms. Rios said staff would be comfortable with that. City Council Meeting Minutes - September 10, 2019 Page 4 of 8 Mr. Anaradian said staff would provide Council with a full list of programs. The programs provided were only for the G.O. bond programs and did not include the use of development impact fees. The library projects would be funded by development impact fees. Councilmember Tolmachoff asked if the debt service for the $5.2 million in street reconstruction for FY19-20 and FY20-21 was paid by the GO tax. Ms. Rios replied the streets project was paid by the secondary property tax, part of the G.O. Bond program. It was not from the General Fund, but rather the property tax. Councilmember Tolmachoff asked if there was any capacity for funding of the streets project. It was presented to the Citizens Transportation Oversight Commission (CTOC) and the anticipated $74 million would not go as far as was planned. Mr. Anaradian said Council would receive a comprehensive presentation at its workshop on September 24th which CTOC had not seen. It would encompass all of the transportation programs and debit capacity for the next 25 years. Councilmember Tolmachoff asked about the relocation of the City Prosecutor's Office. Vice Mayor Clark's Council Item of Special Interest was approximately 290 days old and there was no funding available until FY21-22. The proposed building could be moved into and waiting two years to make the move was unacceptable. Prosecutors should be moved to the new location sooner rather than later. Ms. Rios did not have an update on the project. Councilmember Turner said the bond debt service would decrease in 2023 which would keep the property tax flat at that point. Ms. Rios said that was correct and more debt could be issued at that time which would increase the property tax. Council's direction had been not to do that and to keep the property tax flat. Staff was assuming the same $20 million would be levied and the borrowing capacity would be limited to that. Councilmember Turner said some landfill, water and sewer projects were being recommended for G.O. bond funding even though it could be paid for with revenue bonds. He said G.O. bonds used capacity. Ms. Camacho said the City's credit rating was better than the landfill fund which would result in a lower borrowing rate. The water and sewer authorization was approved at the 2007 election and was restricted to certain projects. In general, for water and sewer, revenue bonds were issued. Ms. Rios clarified that voter authority would be used if landfill bonds were issued as G.O. bonds. The $20 million capacity would not be used because the bonds would be paid by the landfill. Councilmember Turner asked if it meant there was less money to pay for projects such as for parks and fire stations. Ms. Rios said not if the landfill paid the debt service. Councilmember Malnar asked if a bond committee would only consider raising the four areas of bond authorization or if it would consider all bond authorizations and consider a reduction if appropriate. He calculated that $305 million had been authorized but there was only $205 million City Council Meeting Minutes- September 10, 2019 Page 5 of 8 within the specific categories. Ms. Rios said the proposed bond committee would look at the authority in every category. Per statute, the City could not take away or lower authority that had been granted by the voters but the City did not have to issue bonds in a certain category. Councilmember Malnar said if the City went out for additional bond obligations, tax payers should not see an increase in the secondary property tax. Ms. Rios said there was no intention to raise property tax rates. Council would go through the models with the bond committee. Ballot language had to include information regarding what property tax rates would look like if the City issued all of the outstanding bonds. Ms. Camacho said if there was Council consensus on the formation of a bond committee, a resolution would be placed on the September 24th Council voting meeting agenda. Mayor Weiers said there was Council consensus to proceed with forming a bond committee. Ms. Rios asked if there was consensus for a 7-member committee. Mayor Weiers said there was consensus for one appointee by each Councilmember and one by the Mayor. Ms. Rios inquired about setting the quorum at three members. There was not Council consensus for a 3-member quorum. Ms. Rios clarified that the quorum would be a majority of the appointed members. Mayor Weiers said there was a consensus for a 4-member quorum. Ms. Rios asked Council to consider appointments as soon as possible due to the timeline. Mayor Weiers asked what kind of time commitment would be required of the committee members. Ms. Camacho estimated there would be one meeting in both November and December and then two meetings each month until the public outreach was completed in April. After that, there would be a few meetings each month until the bond election was held. Ms. Rios said the first few meetings would be the longest because staff needed to lay out the foundation for the financial plan and projects. After that, the meetings should be shorter and not all members would have to be present at every public outreach meeting. 3. FY 2020-21 HUD GRANT FUNDING PRIORITIES Presented by: Stephanie Small, Director, Community Services Matthew Hess, Revitalization Administrator Ms. Bower read the item by title. Ms. Small said there were no major changes in the Community Development Advisory Committee's (CDAC) recommendations as compared to Council's priorities from last year. Mr. Hess provided information on the funding background, estimated funding amounts, data and City Council Meeting Minutes- September 10, 2019 Page 6 of 8 trend analysis, Council priorities, the CDAC timeline, and next steps. Vice Mayor Clark asked if Community Development Block Grants (CDBG) funds could be used for Granada Estates. She believed the area was low-to-moderate income. Mr. Hess stated the census tracts were determined by the Department of Commerce. He did not believe the Granada Estates boundaries were in the overlap. Staff would confirm and provide Council with a definitive answer. Vice Mayor Clark asked if O'Neil and Rose Lane parks were in the funding census tracts. Mr. Hess said the parks were in the funding tracts. Vice Mayor Clark asked what the difference was in "Public Services" and "Administration." Mr. Hess said "Administration" was staff and overhead costs and "Public Services" were direct services to low-to-moderate income people in the community, Vice Mayor Clark asked about the Low & Moderate Income (LMI) benefit calculation and the distinction. Mr. Hess said the LMI benefit applied to the overall grant funds and the public services cap related to only the direct services to individuals. Councilmember Tolmachoff asked which category contained the VIP program. Ms. Small said it was within Public Services. Ms. Hess said based on the past year's funding, the FY20-21 funding would be $3,353,501.56. Mayor Clark asked if the funding had been consistent over the years. Mr. Hess said there had been a slight increase over the last few years but it had been fairly steady. Ms. Small said that the last few years had seen slight increases. There was no way to know the amount that would be allocated. The amount from the previous year was used as a placeholder. Staff would inform Council of the actual amount to be received from HUD once the amount was known. Mr. Hess presented current trends and data and the CDAC's recommendations. Ms. Small said the CDAC's recommendations were a draft for Council's review and approval. Councilmember Aldama asked Ms. Small to address the VIP funds. Ms. Small said VIP was one of the programs recommended for elimination however there was still funding left in the current VIP budget. The CDAC felt the focus should be on other areas, such as youth. Councilmember Aldama asked what the budget balance was for VIP. Ms. Small estimated the budget to be $184,000 but would follow up with confirmation. City Council Meeting Minutes- September 10, 2019 Page 7 of 8 Ms. Rios asked for consensus on the recommendations for funding priorities which would then become the basis for grant applications. Mayor Weiers said there was consensus. CITY MANAGER'S REPORT No report CITY ATTORNEY'S REPORT No report COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Aldama said some of Council's Items of Special Interest were very old. He requested a plan from the City Manager as to how the items would be brought back to Council. Councilmember Aldama asked the City to look into starting a series of study sessions or workshops regarding presumptive cancer in firefighters. Councilmember Tolmachoff requested an update on Vice Mayor Clark's Item of Special Interest regarding the relocation of the Prosecutor's Office. Councilmember Turner supported the requests regarding presumptive cancer among firefighters and the update on the Prosecutor's Office. EXECUTIVE SESSION Mayor Weiers said no executive session would be held. ADJOURNMENT 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 10th day of September, 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 18th day of September, 2019. J 19Bower, MMC, City Clerk City Council Meeting Minutes- September 10, 2019 Page 8 of 8