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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 8/25/2020 (3)City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 Glendale A R I Z O N A Meeting Minutes Tuesday, August 25, 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 Mayor Weiers called the meeting to order at 12:30 p.m. ROLL CALL 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. PRESENTATION ON THE CITY'S INVESTMENT PORTFOLIO Presented by: Lisette Camacho, Director, Budget and Finance Rebecca Chitwood, Controller, Budget and Finance Guest Presenter: Sheila Duffy, Director, Public Trust Advisors Ash Mehta, Vice President, Public Trust Advisors Ms. Bower read the item by title. Ms. Chitwood presented information on the City's investment policy. Mr. Mehta provided information on Public Trust Advisors' approach to the City's portfolio. Councilmember Turner asked if the graph for non-farm payrolls was truncated and began at 0.13 and not zero. Mr. Mehta said that was correct. It illustrated the impact and time to normalize levels. Councilmember Clark asked if the value of the liquidity portfolio dropped by $3 million in the past year. Mr. Mehta said funds had matured and were spent and it was not a decrease in value. Councilmember Clark asked how much was expended from the liquidity portfolio, from June 2019 to June 2020. Ms. Rios explained how to determine the net amount with gains and the amount spent. Councilmember Clark asked if the cap for the fund was $80 million. Ms. Rios said the amount changed based on the City's needs, but the target amount was $80 million. City Council Meeting Minutes - August 25, 2020 Page 2 of 8 Councilmember Clark asked if half of the total value was in the liquidity portfolio. Ms. Rios said it was approximately 40 percent. Councilmember Clark asked why the strategy was created in 2017. Ms. Camacho explained the history of the portfolio and reasons why the strategy was created. Councilmember Turner asked if it was typical to get a better rate of return from the liquidity portfolio versus the core portfolio. Mr. Mehta said because of market conditions, more appreciation was seen in the core portfolio. Typically, a better yield was earned from the core portfolio. Councilmember Clark asked whether funds could be moved from the core portfolio when earnings were higher in the liquidity portfolio. Ms. Camacho said it could be done within 48 hours with available investments. Councilmember Clark asked if investments were moved when it benefited the City. Ms. Rios said if necessary, investments could be moved. She explained the goal for long term investments. Councilmember Clark asked who determined the benchmark. Mr. Mehta said it was a collaboration between the City and the portfolio managers. Because of statutory requirements, investments were limited to five years. Councilmember Clark asked about the benchmark figure. Mr. Mehta said the benchmark index was published information. Ms. Camacho said the benchmark criteria was within the City's investment policy. Councilmember Aldama asked about the City's investment policy. Mr. Phelps provided informant on how the investment policy was built and how the elements could be changed. The goal was not maximum return, but to follow the selected elements to accomplish the best overall result. Mayor Weiers asked if the City paid more in consultant's fees than it had made on the investments. Ms. Rios said the consultant's fee was less than $100,000 per year and the portfolio earned $3 million per year. Councilmember Clark asked if different scenarios were developed based on the performance of the economy and how quickly the City could react to changing conditions. Mr. Mehta said the team had built models for several scenarios. Ms. Rios said if necessary, investments could be sold or traded within 24 hours. City Council Meeting Minutes - August 25, 2020 Page 3 of 8 2. GLENDALE WORKS PROGRAM UPDATE Presented by: Jean Moreno, Interim Community Services Director Item removed from the agenda 3. SPECIAL EVENT SEASON UPDATE FOR FY20 AND FY21, AND REVIEW OF THE CHOCOLATE EXPERIENCE EVENT Presented by: Jim Burke, Director, Public Facilities, Recreation & Special Events Heidi Barriga, Special Events Administrator Ms. Bower read the item by title. Ms. Barriga reviewed the previous year's events and plans for the upcoming season. Mayor Weiers asked what the total cost impact, both internal and external, was for the events. Ms. Rios said if the indirect costs were included, she estimated an additional 20% above the presented figures. Councilmember Aldama asked if the City analyzed the marketing value of the events. Ms. Rios said it was difficult to measure but sales tax revenue for downtown merchants was reviewed. Councilmember Aldama said the events were not just for revenue purposes. There were other benefits to the City. Councilmember Tolmachoff asked if the December banners were part of the budget. Ms. Barriga said the banners were included. Mayor Weiers asked what the plan was if Glendale Glitters needed to be cancelled due to the pandemic. Ms. Barriga said the allocated funds would be used for lighting the trees in Murphy Park. Mr. Phelps said the guidelines set by the Governor would be followed for the pandemic. Councilmember Aldama asked how much time was needed to announce the event's cancellation. Ms. Barriga said staff had determined the deadline would be October 1, 2020. Councilmember Tolmachoff asked what happened to the unused budget allocated for the downtown events. Ms. Barriga said it went back into the General Fund at the end of the fiscal year. Councilmember Tolmachoff wanted to see the funds used on other downtown events. She asked if the budget for Live at Murphy Park went back into the General Fund. Ms. Barriga sad that was correct. City Council Meeting Minutes - August 25, 2020 Page 4 of 8 Councilmember Tolmachoff asked if that was the normal process. Ms. Rios said it was and the funds returned to the General Fund as cost savings. Councilmember Tolmachoff asked if there was also event programming for Westgate or Arrowhead Towne Center. Ms. Barriga said the presentation was specific to the downtown area. The Special Events department was planning other City events. Mr. Phelps recalled a staff proposal for the Westgate and Arrowhead Towne Center events and based on Council direction for the chocolate event, funding was reallocated. He asked for Council feedback to determine the number of downtown events or other community events and staff would return with recommendations. Councilmember Tolmachoff asked if there was programming funding available for areas other than the downtown. She recalled funds programmed for an event at the Arrowhead Towne Center and asked if the funding was still available. Mr. Phelps said the budget was the same from the previous year and assumed the Chocolate Experience was a Council priority. There could be cost savings to partner with Westgate or the Arrowhead Towne Center. Councilmember Tolmachoff favored moving forward with allocating funding for events in other areas of the City. Councilmember Aldama supported creating an annual event near the Arrowhead Towne Center. Councilmember Tolmachoff requested a discussion on the special events for the year. She was in favor of using unspent funds to hold events throughout the City. Mayor Weiers asked if staff would know by the October workshop if events had to be cancelled. Mr. Phelps said staff would have that information. Councilmember Turner understood the intent was to have the lights and special attractions available after Thanksgiving without the crowds. He suggested using unused funds to purchase more picture taking opportunities that were installed throughout the area to promote downtown businesses. Ms. Barriga said that was the intent. Councilmember Clark requested two scenarios be brought back to the October workshop. Councilmember Turner asked if the downsized space for the Glendale Ambassadors was a consideration. Ms. Barriga said even with downsizing the space, the perimeter fencing was still a requirement for alcohol sales. Councilmember Clark asked if the alcohol sales could be located in front of the Civic Center to limit fencing. Mr. Phelps said that approximately two years ago, staff had proposed relocating the Ambassadors City Council Meeting Minutes - August 25, 2020 Page 5 of 8 farther to the east on Glenn and had received quite a bit of pushback from the Ambassadors because it would impact sales. He said that the Ambassadors put a lot of effort and volunteer hours into the events and staff wanted to keep the Ambassadors engaged in the weekend. The City could provide reimbursement to the Ambassadors for activities such as providing directions and other activities. The goal was to drive adults seeking adult beverages into downtown restaurants. Councilmember Aldama supported keeping the Ambassadors involved. Councilmember Tolmachoff said the Ambassadors' main fund raising for the year was done at Glendale Glitters and wanted to find a way to accommodate the group. She asked what was the goal of removing the Ambassadors' stand. Ms. Barriga said streets would still be closed but the pedestrian fencing would be removed. Councilmember Tolmachoff asked if the event footprint remained the same. Ms. Barriga said it did remain the same. Mr. Phelps asked what the Ambassadors' sales total was at last year's event. Ms. Barriga said it was $1,047. Councilmember Turner had received information from the Ambassadors that the amount raised was approximately $6,000 in total for last year's event. Instead of eliminating the Ambassadors presence at the event, he wanted to them to be a beer and wine vendor at the Live at Murphy Park series. Councilmember Clark said consensus could change pending the outcome in October. Mayor Weiers said providing direction now was necessary with the caveat direction could change. Councilmember Aldama favored keeping the kids' rides as part of the event. Mayor Weiers asked if the vendors for the kids' rides were paid by ticket sales and asked if the City would take a loss if the rides were not at the event. Ms. Barriga said the vendors were paid by ticket sales and the City received a percentage of the sales. The City received $1,000 from last year's event. Councilmember Turner had received some negative feedback regarding the new format of the Chocolate Affaire. He asked how last year's attendance and vendors compared to previous years. Ms. Barriga shared the estimated attendance at last year's event but did not have the number of vendors. Councilmember Turner asked where the revenue came from for the event. Ms. Barriga said it was from soda and water sales at the Chocolate Experience by the Glendale Ambassadors. Councilmember Aldama had received positive feedback from the downtown merchants. Councilmember Tolmachoff looked forward to the next Chocolate Experience event. City Council Meeting Minutes - August 25, 2020 Page 6 of 8 CITY MANAGER'S REPORT Mr. Phelps said the City had partnered with the Phoenix Business Journal to survey City employees to benchmark improvements. Mr. Phelps introduced and shared information on the Glendale Gold Star Program. Mr. Phelps said the Space Force program had announced its search for a location for its headquarters. In coordination with Luke Air Force Base, the City had made its intention known to the Department of Defense. Mr. Phelps reported an unsolicited offer to purchase a remnant parcel of land. CITY ATTORNEY'S REPORT No report COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Tolmachoff requested a discussion regarding City -owned property. Councilmember Turner supported Councilmember Tolmachoff's request. Vice Mayor Malnar said the City Code Review Committee had developed a recommendation regarding parking. He requested Council discussion and direction. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Jamie Aldama, seconded by Councilmember Ian Hugh 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 2:34 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 the City of Glendale's position in connection with contracts, agreements and/or economic development agreements of the area in, near and surrounding 95th Avenue and Cardinals Way that are the subject of negotiations pursuant to A.R.S. §§ 38-431.03(A)(3)(4); City Council Meeting Minutes - August 25, 2020 Page 7 of 8 Discussion and or consultation, to consider its position, and to provide instruction/direction regarding the appointment 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 and or consultation, to consider its position, and to provide instruction/direction regarding the appointment of the City Judge and discussion/consultation for legal advice with the City Attorney pursuant to A.R.S. §38-431.03(A)(1)(3). A motion was made by Councilmember Jamie Aldama, seconded by Councilmember Joyce Clark to adjourn the 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 Mayor Weiers adjourned the executive session at 5:01 p.m. ADJOURNMENT Mayor Weiers adjourned the meeting at 5:01 p.m. 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 25th day of August, 2020. 1 further certify that the meeting was duly called and held and that a quorum was present. Dated this 1st day of September, 2020. We K. Bower, MMC, City Clerk City Council Meeting Minutes - August 25, 2020 Page 8 of 8