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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 8/11/2020City of Glendale 5850 West Glendale Avenue Glendale, AZ 85309 (0 Glendale A R I Z O N A Meeting Minutes Tuesday, August 11, 2020 12:30 P.M. Workshop Meeting Civic Center City Council Mayor Jerry Weiers Vice Mayor Ray Malnar Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Lauren Tolmachoff Councilmember Bart Turner CALL TO ORDER ROLL CALL Mayor Weiers called the meeting to order at 12:30 p.m. Present: Mayor Jerry Weiers Vice Mayor Ray Malnar Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ian Hugh 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 Jack Friedline, Assistant City Manager WORKSHOP SESSION 1. INFORMATION AND DISCUSSION ON THE FORMATION OF REVITALIZATION DISTRICTS AND IMPROVEMENT DISTRICTS Presented by: Vicki Rios, Assistant City Manager Lisette Camacho, Director, Budget and Finance Guest presenter: Michael Cafiso, RBC Capital Markets Ms. Bower read the item by title. Ms. Rios provided a high-level overview of the policies. Ms. Camacho provided the background information on improvement and revitalization districts. Councilmember Tolmachoff asked who would foreclose on an encumbered property. Ms. Rios said in most cases, the mortgage lender would pay the assessment and foreclose themselves. Councilmember Tolmachoff asked if it was a tax lien. Mr. Bailey said it would be a secondary lien. Councilmember Tolmachoff said the mortgage lender could choose not to act. Mr. Bailey said it was improved property and the standard practice was for the mortgage lender to foreclose. Councilmember Tolmachoff asked whether there was no obligation in the first position other than to foreclose. Mr. Bailey said pursuant to the policy there was not, but right of priority would be established. City Council Meeting Minutes - August 11, 2020 Page 2 of 9 Councilmember Tolmachoff asked if it had to be paid back such as a tax lien. Mr. Bailey said it was not similar to a tax lien. Vice Mayor Malnar asked if the County Assessor assessed the tax. Ms. Rios said there was an option to ask the County Assessor to do the assessment or the City could do it directly. Vice Mayor Malnar recommended the County Assessor oversee the process. The liens could be sold and the City would still be paid. Ms. Rios said that was effectively how it worked. Councilmember Aldama asked if a successful revitalization district was required to follow the City's General Plan or create its own. Mr. Bailey said it would follow the City's General Plan. Such questions would be addressed in the formation documents. Councilmember Tolmachoff asked if the size of the district had an impact on the fee. Mr. Rios said it was a flat $40,000 fee, however, staff analysis and other fees were covered within the $25,000 down payment. Councilmember Tolmachoff asked if improvement districts were managed by the City. Ms. Rios said that was correct. Councilmember Tolmachoff asked if there was a management fee. Ms. Rios said it could be added to the assessment. Councilmember Tolmachoff asked if there was urgency on the item as it was on the agenda for the evening voting meeting. Mr. Phelps said the Park 303 development was on the voting agenda and was requesting the formation of a revitalization district. The goal was to set the requirements then set the policy for the development for consideration at the following voting meeting. Councilmember Tolmachoff asked if other cities used the same model. Mr. Cafiso explained the lien process and payments on property. A revitalization district had been formed in Cave Creek and the City of Buckeye had a process for revitalization districts. Councilmember Tolmachoff asked for information on indemnity. Mr. Bailey said the indemnification needed to be set aside as part of the policy. It was required to form a district, but details needed to be discussed with developers. Councilmember Tolmachoff asked if it was essentially arbitrary. Mr. Bailey said that was correct, but the amount was project -based. City Council Meeting Minutes - August 11, 2020 Page 3 of 9 Councilmember Tolmachoff asked who determined the appropriate amount. Mr. Bailey said it would be in the formation documents with the negotiated amount. Mr. Phelps explained each revitalization district was unique and a predetermined amount might not be adequate for the development. Councilmember Tolmachoff asked who conducted the risk assessment. Mr. Phelps said consultants and attorneys worked on the draft formation for Council consideration. Councilmember Tolmachoff asked if private development could be done within a revitalization district. Mr. Cafiso said there was not a clear delineation regarding public and private development. Council would assist with the opinion to determine what could legally be financed. Councilmember Tolmachoff requested that bond counsel be present to advise Council at the meeting when an application was brought forward. Mr. Bailey said Mr. Cafiso would be available to Council during consideration. Mayor Weiers asked if the item would be presented at a workshop before going to a voting meeting. Ms. Rios said that was correct. Councilmember Aldama asked if a revitalization district was approved, was it a separate government entity. Mr. Cafiso said it was a separate political subdivision that only had taxing power. Councilmember Tolmachoff asked for clarification regarding section 1.8 of the improvement districts policy. Ms. Rios said when public infrastructure was built or acquired, the City obtained the infrastructure and the land. Councilmember Tolmachoff asked what was eligible under a general improvement district. Mr. Cafiso said there was a statutory definition of work that an improvement district could include. It was not as broad as the other districts available. Councilmember Tolmachoff asked if it was the best tool to accomplish the end result. Mr. Cafiso said staff had determined that a revitalization district was the best tool and that each case was different. Ms. Rios explained the process was a tool for Council to use upon formation of a district. Councilmember Tolmachoff asked if public procurement policies would be in play. Mr. Bailey said that was correct. City Council Meeting Minutes - August 11, 2020 Page 4 of 9 Vice Mayor Malnar asked if the number of improvement districts were similar to revitalization districts throughout the state. Mr. Cafiso said there had been improvement districts within Arizona since the 1910's and the number was robust. Vice Mayor Malnar asked if a revitalization district required an application. Ms. Rios said that it was required under the draft policy. Vice Mayor Malnar asked if Council could initiate an improvement district. Mr. Cafiso said it was always a Council -initiated process based on work done in advance by staff. The draft policy required a single individual to represent the property owners as the applicant within the improvement district. Councilmember Turner asked who determined the individual. Mr. Cafiso said the property owners determined who the applicant was under the draft policy. Ms. Rios said Council effectively became the board of an improvement district. A revitalization district formed its own board with mechanisms in place to update board members. Councilmember Turner asked if the district was formed for the initial construction of the improvements and if so, was there a duty to maintain the improvements over time. Mr. Cafiso said it could be the responsibility of the City to maintain the improvements or depending on the nature of the infrastructure, it could be the responsibility of the development or the user. Councilmember Turner asked if the debt of the improvement districts impacted the City's ability to obtain general obligation (G.O.) bonds. Ms. Rios said it did not impact G.O. bonds since the assessment funds had their own revenue source. She said the revenue and the debt appeared within the budget. Mr. Cafiso said it did not impact statutory or constitutional debt limits but could impact the lending rate. Ms. Rios said in the event an improvement district application was received, legal counsel and staff would explain any potential impact to Council. Councilmember Turner asked how the level of indemnification was determined. Ms. Rios explained multiple factors of the application would be reviewed. Staff would obtain advice and recommendations from the City's insurance brokers to provide a recommendation for Council. Councilmember Turner asked how the taxpayers benefited from the policies. Mr. Phelps said it was a tool to use under specific circumstances. It was well-suited for large developments with multiple owners. Councilmember Turner asked if it could be used within existing business districts for revitalization. City Council Meeting Minutes - August 11, 2020 Page 5 of 9 Mr. Phelps said there were limitations on the use of the districts which were used mainly for public infrastructure. It was anticipated that most requests would originate in areas with little or no infrastructure. Councilmember Turner asked if the policy could be amended and if once a district was approved, the stipulations could not be changed. Ms. Rios said that was correct. The main points to form a district were contained within the formation documents, not the policy. Councilmember Tolmachoff requested consensus to amend stipulation 3.3 in both policies. Ms. Rios would prepare an amendment to the policy language for the voting meeting. Mayor Weiers confirmed Council consensus to amend the policy language for consideration at the voting meeting. 2. REEMS RANCH ANNEXATION AN -220 - LOCATED SOUTH OF THE SOUTHEAST CORNER OF REEMS ROAD AND NORTHERN AVENUE. Presented by: George Gehlert, Planning Project Manager Ms. Bower read the item by title. Mr. Gehlert requested Council direction to move forward with the proposed annexation. Councilmember Tolmachoff asked if there was a zoning category more similar to RU -43 rather than a PAD (Planned Area Development). Mr. Gehlert said there was a proposal for PAD with Maricopa County and it was the intent to mirror that. Councilmember Tolmachoff asked what the zoning was at the time of the annexation. Mr. Gehlert said as part of the adoption of the annexation, Council would also address the PAD zoning. Councilmember Tolmachoff believed there was a legal obligation to provide like zoning at the time of annexation. She asked if the City had residential acre lot zoning. Mr. Gehlert said it did. Councilmember Tolmachoff was concerned with changing it to a PAD at annexation. Mayor Weiers asked if it was currently zoned as 1 residential unit per acre under its current Maricopa County zoning and that due to Luke Air Force Base (LAFB) requirements, residential was not allowed. Mr. Gehlert said that was correct. Mayor Weiers said because residential was not possible on the site, he did not see an issue with the annexation as a PAD. City Council Meeting Minutes - August 11, 2020 Page 6 of 9 Councilmember Tolmachoff asked what the zoning would be when annexed. Mr. Gehlert said it would be brought in as a PAD. Mr. Bailey said the property was classified as C-2 and Industrial in the County under the military compatibility. Like zoning required the PAD to be created. Councilmember Tolmachoff said the staff report stated the zoning was RU -43, not C-2. Mr. Phelps said Interim Development Services Director Lisa Collins was available telephonically to answer questions. Ms. Collins said the County had an RU -43 designation with a military compatibility use permit overlay. Councilmember Tolmachoff clarified the proposed zoning would be the same as its current County zoning. Ms. Collins said that was correct. Mayor Weiers said there was Council consensus to proceed with the annexation. CITY MANAGER'S REPORT Mr. Phelps said an item regarding how the Arizona CARES Act funding should be utilized would be placed on an October workshop agenda. Mr. Phelps said the Community Services staff had processed nearly 750 applications for assistance with nearly 1,000 pending requests since March. A memo would be sent highlighting each program within Community Services as well as Economic Development's efforts with businesses. Mr. Phelps said the Maricopa County Board of Supervisor's approved the County's small business assistance program and all City of Glendale businesses were eligible to apply. Mr. Phelps presented information on the City's November 3, 2020 bond election and the schedule for public outreach meetings. Mr. Phelps reported an unsolicited offer to purchase City -owned property. CITY ATTORNEY'S REPORT No report COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Aldama requested an item related to 5G cell towers for future discussion. Councilmember Aldama requested a report regarding the design process for the O'Neil Park splash pad. Councilmember Aldama requested a report on the status of the implementation of the community center programs. Councilmember Clark agreed with Councilmember Aldama's request for reports on the O'Neil Park City Council Meeting Minutes - August 11, 2020 Page 7 of 9 splash pad and community center programs. Councilmember Tolmachoff was also in favor of the community center programs report. Councilmember Tolmachoff requested a follow up on Citygate. Councilmember Turner was in support of the community center programs update and a follow-up to Citygate. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Joyce Clark, seconded by Councilmember Lauren Tolmachoff to hold an executive session. AYE: Mayor Jerry Weiers Vice Mayor Ray Malnar Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Lauren Tolmachoff Councilmember Bart Turner Passed EXECUTIVE SESSION Council met in executive session at 2:22 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 pending or contemplated litigation, or in settlement discussions conducted in order to avoid or resolve litigation pursuant to A.R.S. §38-431.03 (A)(3)(4); Discussion and consultation with the City Attorney and City Manager to receive an update, consider its position and provide instruction and direction to the City Attorney and City Manager regarding Glendale's position in connection with agreements associated with the Arena Manager pursuant to A.R.S. § 38-431.03(A)(3)(4); Discussion and or consultation, to consider its position, and to provide instruction/direction regarding the appointment process of the Presiding Judge and discussion/consultation for legal advice with the City Attorney pursuant to A.R.S. §38-431.03(A)(1)(3); and Discussion regarding 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 Lauren Tolmachoff, seconded by Councilmember Ian Hugh to adjourn the executive session. AYE: Mayor Jerry Weiers Vice Mayor Ray Malnar Councilmember Jamie Aldama City Council Meeting Minutes - August 11, 2020 Page 8 of 9 Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Lauren Tolmachoff Councilmember Bart Turner Passed Mayor Weiers adjourned the executive session at 3:45 p.m. ADJOURNMENT Mayor Weiers adjourned the meeting at 3:45 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 11th day of August, 2020. 1 further certify that the meeting was duly called and held and that a quorum was present. Dated this 25th day of August, 2020. Juli . Bower, MMC, City Clerk City Council Meeting Minutes - August 11, 2020 Page 9 of 9