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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 10/13/2020City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 Glendale A R I Z O N A Meeting Minutes Tuesday, October 13, 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 Joyce Clark Councilmember Ian Hugh Councilmember Lauren Tolmachoff Councilmember Bart Turner Absent: Councilmember Jamie Aldama Also Present: Kevin Phelps, City Manager Michael Bailey, City Attorney Sheryl Rabin, Deputy City Clerk Jack Friedline, Assistant City Manager Councilmember Aldama was not present for the roll call and joined the meeting at 12:32 p.m. WORKSHOP SESSION 1. COUNCIL ITEM OF SPECIAL INTEREST - PROPERTY TAX LEVY FINANCIAL POLICY Presented by: Lisette Camacho, Director, Budget and Finance Guest Presenter: Kurt Freund, Managing Director, RBC Capital Markets, LLC Ms. Rabin read the item by title. Ms. Camacho provided a presentation on the secondary property tax and potential revisions to the City's Debt Management Policy. She requested Council feedback and consensus on the purposed policy. Councilmember Tolmachoff asked for further explanation on levying sufficient ad valorem taxes with respect to outstanding general obligation (G.O.) bonds. Mr. Freund explained that G.O. bonds were secured by an unlimited property tax secured by the general property tax credit of the City. The policy was to have a flat levy plus growth limited to not more than 2% per year. If it could not be met, no new bonds would be issued. Mayor Weiers clarified if the Council approved the policy, a future Council could change the policy. Mr. Freund said that was correct. Vice Mayor Malnar said if there was growth, why was it limited to 2% instead of "plus growth". Ms. Camacho said the financial model was updated annually and actual growth was built in once it was known for that year. The financial model was updated each year. Councilmember Clark agreed with Vice Mayor Malnar's suggestion of using "plus growth" rather than limiting it to 2%. Mayor Weiers said Ms. Camacho had explained that growth was adjusted annually. City Council Meeting Minutes - October 13, 2020 Page 2 of 9 Vice Mayor Malnar said if the limit was 2%, and growth was more than 2%, how did the City make up the difference. Mayor Weiers said it was growth plus 2%, Mr. Freund said it was an assumption of 2%. Councilmember Clark was comfortable with wording that allowed for new growth without a set percentage. Councilmember Tolmachoff said when forecasting, the 2% would still be used. The forecasting was necessary because the current year levy could not be used. She was comfortable using the 2% because the growth was built in. Councilmember Tolmachoff asked if a future Council changed the policy, it would require notice and public discussion. Ms. Camacho said that was correct. Councilmember Turner interpreted the language to read no matter the growth, the levy was no more than 2%. He was in favor of revising the language to define what "plus growth" was for clarification. Councilmember Tolmachoff felt the language was clear. Mayor Weiers said taxes were in arrears at the beginning of each year and the policy would not change it. Mr. Freund explained the policy was not a levy limit, it was a debt issuance limit. He added it was best to be conservative on growth assumptions for each year. Mayor Weiers asked if the percentage ever exceeded 2%. Ms. Camacho said in the past 10 years, the average was 1 % in growth. Councilmember Clark understood and the policy was clarification for the public. She was uncomfortable with the 2% language. Vice Mayor Malnar said if the main concern was for the public to understand the policy, he favored removing the 2% language and leave in the growth. Councilmember Tolmachoff said it was important to state it was the Council's intention to be conservative. Mayor Weiers asked what was typical of other cities' policies. Mr. Freund did not know of another city that had a similar policy. The procedure was the same in other cities but there were no limitations. Mayor Weiers said there was consensus to retain the 2% language in the policy. Ms. Camacho said approval of the draft policy was on the agenda for the voting meeting. City Council Meeting Minutes - October 13, 2020 Page 3 of 9 2. PROPERTY OWNER PRESERVATION PROGRAM FOLLOW-UP Presented by: Jean Moreno, Director, Community Services Matthew Hess, Administrator, Community Revitalization Ms. Rabin read the item by title. Ms. Moreno provided a follow-up and update on the Property Owner Preservation (POP) Program presented at the previous workshop meeting. She requested consensus on two items: • Direction to apply local preference for specific qualifying characteristics • Program limits Mr. Hess provided information on program funding caps. Mayor Weiers asked how long it would take to exhaust the $782,053 in funding. Ms. Moreno expected it to be used quickly. Councilmember Tolmachoff asked if the program also applied to short-term rentals. Ms. Moreno said there was not a limitation on short-term rentals. Documentation was required to indicate a month-to-month lease. Councilmember Tolmachoff asked if vacation rentals were excluded. Ms. Moreno said, at the request of the Council, the policy could be updated to exclude vacation rentals. Councilmember Tolmachoff asked if the cap was based on the rent amount. Ms. Moreno said if the rent amount exceeded the cap amount, the tenant was responsible for the remaining amount over the $2,000 cap. If the rent amount was less than the cap, the tenant would receive the full rent amount. Councilmember Tolmachoff had concerns regarding vacation rentals. Vice Mayor Malnar asked if interviews with applicants would be done. Ms. Moreno said interviews were done as part of quality assurance. Vice Mayor Malnar asked if large corporations were eligible for the program. Ms. Moreno said corporations could apply but would not receive preference points. Vice Mayor Malnar asked if the property owner was limited to the number of units. Ms. Moreno requested Council direction on the issue. Vice Mayor Malnar preferred a funding method that assisted individuals. Councilmember Clark agreed with Vice Mayor Malnar's preference. Mayor Weiers confirmed there was consensus to move forward with the plan. City Council Meeting Minutes - October 13, 2020 Page 4 of 9 Councilmember Clark suggested adding information to the City website right away. Councilmember Turner was unclear on the consensus and asked what the rent cap limit amount was. Ms. Moreno said the program proposed a $2,000 monthly rent limit with a max amount of $12,000 per unit and preference points. 3. WEST VALLEY INNOVATION TECHNOLOGY CENTER Presented by: Jessi Pederson, Assistant Director, Economic Development Ron Babich, Chair, West Valley Innovation Alliance (WVIA) Ms. Rabin read the item by title. Ms. Pederson said staff was seeking guidance and consensus to formalize a partnership with WVIA to provide exclusive use of the City -owned property at 5754 W Glenn Drive for the purpose of operating the West Valley Innovation Technology Center for an initial term of two years, contingent upon the receipt of the U.S. Economic Development Administration (EDA) grant. Mr. Babich said the WVIA was created to bring industry growth to the West Valley. Councilmember Aldama asked if the college brought in clients to the program. Mr. Babich said the college did, as well as Westmarc and West-Mec. Mayor Weiers asked if there would be opportunities for the Civic Center to be utilized for events. Ms. Pederson said there would be opportunities. Councilmember Tolmachoff asked what type of agreement was needed to obtain the grant. Ms. Pederson said contingent on Council's approval to move forward with the partnership, there would be discussions with Mr. Bailey on the best way to proceed. Councilmember Tolmachoff asked what other financial obligations there would be for the City. Ms. Pederson explained a full-service gross lease included utilities and one-time Certificate of Occupancy costs. Councilmember Turner supported the program. He asked how it would integrate with the Idea Center at the Library. Ms. Pederson said it would be the next step for businesses after working with the Idea Center. Councilmember Turner asked what the final outcome would be for those participating in the program. Mr. Babich said the outcome was promoting startup companies to stay here. Councilmember Clark was in support of the program. Ms. Pederson asked for consensus to formalize the partnership with WVIA. City Council Meeting Minutes - October 13, 2020 Page 5 of 9 Mayor Weiers said there was consensus to proceed. 4. SPECIAL EVENTS UPDATE FOR FY2020-21 Presented by: Jim Burke, Director, Public Facilities, Recreation and Special Events Heidi Barriga, Special Events Administrator Ms. Rabin read the item by title. Mr. Burke provided a follow-up to the August 25th workshop discussion which included information on Glendale Glitters 2020 and timelines for Glitter & Glow and the Chocolate Experience 2021. He requested consensus on moving forward with the Glendale Glitters Spectacular. Ms. Barriga provided two options for the Glendale Glitters Spectacular: • Option A: An Emcee would guide the Mayor and Councilmembers to flip the switch at 6:00 p.m. on November 27, 2020, turning on the 1.7 million lights in the downtown area. The lighting would be broadcasted via Facebook Live. • Option B: A pre -taped lighting program that broadcasts virtually at 6:00 p.m. on November 27, 2020. An Emcee would guide viewers through a short program with bands performing holiday music and the Mayor and Councilmembers flipping the switch to turn on the 1.7 million lights in the downtown area. The lighting program would be advertised as a Holiday Lighting Watch Party and would be broadcasted via social media. Mayor Weiers suggested showing footage from the past year, with the lights already on to allow people to walk through as a cost -savings. Councilmember Clark agreed with Mayor Weiers' suggestion. Councilmember Aldama was in favor of Option B. Councilmember Tolmachoff was concerned about crowds during the event. Mayor Weiers suggested that each Councilmember present a live -streamed holiday message with old footage of the lights being turned on. He did not want to discourage people from attending the event but wanted to avoid the large crowds. Councilmember Turner agreed with Mayor Weiers' suggestions and promoting when the lights would be turned on. He asked what else could be provided, noting previously a selfie station was used. Councilmember Tolmachoff asked if performers could submit taped performances to be incorporated into the new format. Mr. Burke said staff would work on coordinating it with media staff. Mayor Weiers asked how much money would be saved if neither presented option was selected. Ms. Barriga said the total cost of the Glendale Glitters Spectacular weekend was $124,914. Mayor Weiers suggested that the public be encouraged to submit performances, give awards and broadcast a program to promote the event. He asked if the lights could be turned on before Thanksgiving when many people were out. Councilmember Tolmachoff suggested the evening of Thanksgiving Day. City Council Meeting Minutes - October 13, 2020 Page 6 of 9 Councilmember Aldama agreed with turning on the lights earlier and was in favor of flipping the switch either on an off -day or in the studio. Councilmember Tolmachoff asked if there was discussion regarding vendors in the park. Mr. Burke said vendors in the park were not being recommended. He did not have information regarding rouge vendors. Rick St. John, Deputy City Manager, said vendors with Glendale licenses to vend were able to sell in the downtown area.ccHe deferred to Mr. Bailey as to whether vendors could be kept out of the downtown area when there was not an event. Mr. Bailey said Mr. St. John was correct. With a license, the vendor was authorized to sell within City limits. In order to avoid rogue vendors, streets and areas would need to be closed and further legal analysis would be required. Councilmember Clark was in favor of Mayor Weiers' suggestion for groups to submit performances with awards. She said a resolution could be passed to deter vendors and crowds in the area. Councilmember Tolmachoff clarified mobile vendors excluded food trucks and asked if the Mayor could issue an executive order. Mr. Bailey said he and Mr. St. John would research possible scenarios. Mayor Weiers favored turning on the lights on Thanksgiving Eve and keeping the lights for the duration of the season. There was consensus for the lighting to begin on Thanksgiving Eve. CITY MANAGER'S REPORT Mr. Phelps reported a letter had been sent to the President and CEO of the Arizona Coyotes and the Chief Operating Officer of ASM Global, regarding the current lease agreement for the arena. CITY ATTORNEY'S REPORT No report COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Turner referenced the 2020 Census process and asked for a presentation on the variables to redistrict. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Joyce Clark, seconded by Councilmember Ian Hugh to hold an executive session. AYE: Mayor Jerry Weiers Vice Mayor Ray Malnar Councilmember Jamie Aldama City Council Meeting Minutes - October 13, 2020 Page 7 of 9 Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Lauren Tolmachoff Councilmember Bart Turner Passed EXECUTIVE SESSION Council entered into executive session at 2:45 p.m. for: Discussion regarding appointments and matters relating to various boards, commissions and other bodies pursuant to A.R.S. § 38-431.03(A)(3)(4); and 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 City -owned property in the area of 59th Drive and Myrtle Avenue pursuant to A.R.S. §§ 38-431.03 (A)(3)(4)(7); and 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 property located at 5704 W. Glenn Drive pursuant to A.R.S. §§ 38-431.03 (A)(3)(4)(7); and Discussion/consultation with the City Attorney to receive legal advice, to consider its position, and to provide instruction/direction to the City Attorney regarding Glendale's position in connection with Proposition 207 pursuant to A.R.S. §§ 38-431.03 (A)(3); and Discussion/consultation, to consider its position, and to provide instruction/direction regarding the appointment of the Presiding 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 Lauren Tolmachoff to adjourn the executive session. AYE: Mayor Jerry Weiers Vice Mayor Ray Malnar Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Lauren Tolmachoff Councilmember Bart Turner Other: Councilmember Jamie Aldama (ABSENT) Passed Mayor Weiers adjourned the executive session at 3:45 p.m. ADJOURNMENT Mayor Weiers adjourned the meeting at 3:45 p.m. City Council Meeting Minutes - October 13, 2020 Page 8 of 9 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 13th day of October, 2020. 1 further certify that the meeting was duly called and held and that a quorum was present. Dated this 22nd day of October, 2020. Jul' Bower, MMC, City Clerk City Council Meeting Minutes - October 13, 2020 Page 9 of 9