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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 12/10/2019 City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 Glendale ARIZONA Meeting Minutes Tuesday, December 10, 2019 12:30 P.M. Workshop Meeting Civic Center 5750 W. Glenn Drive City Council Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bail 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: Kevin Phelps, City Manager Michael Bailey, City Attorney Julie K. Bower, City Clerk Vicki Rios, Assistant City Manager WORKSHOP SESSION 1. DISPOSITION OF CITY-OWNED REAL PROPERTY POLICY Presented by: Chris Anaradian, Assistant City Manager Brent Stoddard, Deputy City Manager Ms. Bower read the item by title. Mr. Stoddard presented a draft resolution for Councilmember Aldama's item of special interest related to the administrative policy for the disposition of City-owned property. He requested Council consensus to move the draft resolution to a future voting meeting for approval. Councilmember Turner referenced the resolution and suggested adding "and/or" to the language related to holding a discussion at a workshop and/or executive session. The notification by the City Manager was appreciated, but he wanted to know, in general, where the subject property was located. Councilmember Aldama requested an addition to the procedure for an unsolicited offer. Councilmember Turner confirmed that the request was that the unsolicited offer notification would include a general location of the property. Councilmember Tolmachoff asked if Councilmember Aldama's request was to replace the current wording regarding unsolicited offers. Councilmember Aldama said it was an additional section under unsolicited offer not a replacement. There was Council consensus to proceed with the resolution. 2. FIVE-YEAR FORECAST OF THE MAJOR FUNDS Presented by: Vicki Rios, Assistant City Manager Lisette Camacho, Interim Director, Budget and Finance Amy Lindsay, Budget Administrator, Budget and Finance City Council Meeting Minutes - December 10, 2019 Page 2 of 7 Ms. Bower read the item by title. Ms. Rios presented the five-year financial forecast, which was the first step of the Fiscal Year 2020-2021 (FY20-21) budget process. The figures would be refined throughout the budget process. Ms. Lindsay presented the financial forecast for the general fund. Vice Mayor Clark requested the breakdown list of major categories by department. Councilmember Aldama requested the major category breakdown list be presented at the next workshop meeting. Mayor Weiers asked for the amount of the support by the General Fund of the Transportation Department. Ms. Lindsay said the amount was $1.1 million, which included two other divisions. Mayor Weiers suggested the other divisions be identified separately. Councilmember Tolmachoff requested City and state tax information be included in the detailed list provided at the next workshop. Ms. Rios said the figures used for Parks and Facilities were place holders and would be determined during the budget process. Ms. Camacho said the General Fund contingency amount was increased for the five-year forecast. Councilmember Turner asked for clarification of the $221.9 million shown on the General Fund chart. Ms. Lindsay said it corresponded to operating expenditures. Councilmember Turner said, based on the projection, the General Fund was growing. Ms. Lindsay said that was correct. Councilmember Turner said it was too large of an increase. Ms. Rios explained the increase was related to the assumption figures which were displayed in the charts. The one-time funding increases would level out over time. She reiterated the figures would be finalized during the budget process. Mr. Phelps said the amount reflected a four percent increase in revenue of$8 million. Councilmember Tolmachoff said based on the forecast, obtaining the fund balance goal was going to take more time. Ms. Rios said pending one-time funds were not included. Once received, the funds helped increase the fund balance to $50 million. Councilmember Tolmachoff asked if funds from the fund balance were used in a settlement. Ms. Rios confirmed funds were used from the fund balance and anticipated the one-time funds to City Council Meeting Minutes- December 10, 2019 Page 3 of 7 offset that amount once received. Councilmember Aldama asked if the funds went into the General Fund. Ms. Rios said the funds were deposited into the General Fund but were spent at the Council's direction. Vice Mayor Clark thought a five-year forecast was not reliable. Councilmember Turner asked for information on the net transfers. Ms. Lindsay said it was the difference between the transfers out to cover the debt service and transfers in from the Public Safety Sales Tax funds from Police and Fire. Ms. Camacho presented the financial forecast for the enterprise funds. Vice Mayor Clark asked if inflationary rate increases were automatic. Ms. Camacho said the increases were brought to Council for approval. The inflation rate was a forecast. Councilmember Tolmachoff asked for an explanation of how the projected revenue was estimated in the operating budget. Ms. Rios explained it was built into the Water and Sewer model. It was based on the latest rate study. Councilmember Turner said if the contingency was not used, the fund balance goal would be met. If contingency was used, he asked what would happen. Ms. Rios said it depended on whether the funds were used one-time or if adjustments to the budget needed to be made. If one-time charges were not consistent, the fund balance policy requirement would be met. The only change to staff's method was the use of inflated figures on the rates. Councilmember Tolmachoff asked if the inflated cost for capital project construction was included in the forecast. Ms. Rios said the inflated factors for capital projects were not included since capital projects were updated every year. Regarding the Highway User Revenue Fund (HURF), there was capacity to add to the Pavement Management and Reconstruction Program from the fund. Further details would be shown during the Capital Improvement Project (CIP) Process meetings with Council. Vice Mayor Clark asked how much capacity was available. Ms. Rios said, under the presented forecast, it was approximately $23 million. Vice Mayor Clark asked if the amount was in addition to the $5 million in contingency. Ms. Rios said it was not. It was currently $1.5 million and an additional $3 million was added. The $5 million in question was also comprised of Transportation Sales Tax. Vice Mayor Clark said regardless of the funding source, $5 million was spent in pavement management. City Council Meeting Minutes - December 10, 2019 Page 4 of 7 Mr. Phelps explained the Pavement Management Program had two primary funding sources. A portion of the HURF funds were allowed to be used for pavement management and street construction. The other funding source determined how much was available for the program. Vice Mayor Clark asked if the $4.5 million in Pavement Management was part of the $5 million that was expended. Ms. Rios said a portion of the $5 million was included but it was over and above the amount. Vice Mayor Clark asked how much of the $5 million was used. Ms. Camacho said $3.2 million of the $5 million was used and was increased by $1.3 million for the next four years and $800,000 in fiscal year 2024-2025. Vice Mayor Clark asked if there was Council discussion related to the $1.3 million overage. Ms. Rios said, based on Council direction and the priority of pavement management, it was determined there was capacity for the overage. Council made the final decision during the budget process. Vice Mayor Clark was not in favor of the process for allocating possible available funds. She wanted the amount of the available funds to be communicated before the funds were allocated. Mr. Phelps said the presentation was a forecast and during the budget process, funds could be reallocated. Based on Council feedback, staff presented the potential capacity the Transportation program could have over the next five years. Nothing was final without Council approval. Councilmember Malnar said, upon review of the full budget, reallocation of funds and decisions would be made. The presentation was simply a forecast of what "could be." Councilmember Tolmachoff asked if the figures assumed the same allocations of State funds. Ms. Rios said the presented figures were Highway User Revenue from the gas tax. The figures did not assume HURF funds were restored. If the funds were restored, the forecast would be updated. Vice Mayor Clark asked, in addition to the $1.3 million, if there was $6 million unappropriated. Ms. Camacho said there was $6 million per year for the first four years and $5 million for the fifth year. Vice Mayor Clark asked if there was $7.3 million unallocated in the Transportation Fund for Council to budget. Ms. Camacho said that was correct. 3. COUNCIL ITEM OF SPECIAL INTEREST ANNUAL BUDGET APPROVAL Presented by: Vicki Rios, Assistant City Manager Lisette Camacho, Interim Director, Budget and Finance The item was removed from the agenda. City Council Meeting Minutes - December 10, 2019 Page 5 of 7 CITY MANAGER'S REPORT Mr. Phelps said a meeting on the Vision 4 Project, west of Westgate on the Loop 101 freeway, had taken place with the four principal land owners. Mr. Phelps said weather had impacted the Ballpark Boulevard project but believed the project remained on schedule. Mr. Phelps was preparing to release a new request for proposals (RFP)for the Civic Center. Mr. Phelps said the lighting system in the Council Chambers should be repaired in time for the January Council meetings. CITY ATTORNEY'S REPORT No report COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Aldama requested that the City Manager that the future lease agreement for the Civic Center, allowed Mayor and Council use of the space for district meetings. Councilmember Tolmachoff asked for an update on Northern Parkway and a report on the condition of City-owned facilities. Councilmember Turner attended the annual Historic Downtown Merchants Association meeting and would like to allocate time during a January workshop for the group to present a report on its activities. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Bart Turner, 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 1:49 p.m. 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 Northern Avenue and Grand Avenue pursuant to A.R.S. §§ 38-431.03 (A)(3)(4)(7); City Council Meeting Minutes- December 10, 2019 Page 6 of 7 - 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 Agua Fria River and Beardsley Road pursuant to A.R.S. §§ 38-431.03 (A)(3)(4)(7); - 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 the Glendale Cemetery pursuant to A.R.S. §§ 38-431.03 (A)(3)(4)(7); and - Discussion of appointments and matters relating to various boards, commissions and other bodies pursuant to A.R.S. §§ 38-431.03 (A)(3)(4). A motion was made by Councilmember Bart Turner, seconded by Councilmember Ray Malnar to ajdourn the 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 Mayor Weiers adjourned the executive session at 2:47 p.m. ADJOURNMENT Mayor Weiers adjourned the meeting at 2:47 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 10th day of December, 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 16th day of December, 2019. Juli• . Bower, MMC, City Clerk City Council Meeting Minutes- December 10, 2019 Page 7 of 7