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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 1/12/2021City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 C&7 Glendale A R I Z O N A Meeting Minutes Tuesday, January 12, 2021 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. COUNCIL ITEM OF SPECIAL INTEREST - CONSIDERATION OF CREATING A STREET RENAMING POLICY Presented by: Trevor Ebersole, Director Transportation Don Bessler, PWLF, Chief Capital Improvement Officer Ms. Bower read the item by title. Mr. Ebersole requested approval to proceed with drafting a policy to address the item of special interest regarding a street renaming process. Vice Mayor Malnar provided background information for the item of special interest. Councilmember Aldama supported the item and asked if the policy would address offensive names. Councilmember Clark said the policy was not necessary. Councilmember Tolmachoff asked how many residents had requested a street name change. Vice Mayor Malnar had received approximately six requests. Councilmember Tolmachoff asked if the requests were from Glendale residents. Vice Mayor Malnar said most were residents. Councilmember Tolmachoff asked if the requests were from people who lived on the street for which a name change was being requested. City Council Meeting Minutes - January 12, 2021 Page 2 of 9 Vice Mayor Malnar did not believe they lived on the same street. Councilmember Tolmachoff said the change needed consensus of the residents of the street. Vice Mayor Malnar said the item was to provide consensus to draft a policy for further discussion at a future workshop meeting. Councilmember Tolmachoff was willing to continue the discussion at a future workshop. Councilmember Turner supported moving forward with the development of a policy. Mayor Weiers did not believe a policy was necessary but supported further discussion. There was consensus for staff to return with a draft policy for further discussion. 2. FIVE-YEAR FORECAST OF THE MAJOR FUNDS Presented by: Lisette Camacho, Director, Budget and Finance Amy Lindsay, Budget Administrator, Budget and Finance Ms. Bower read the item by title. Ms. Camacho said the presentation would cover the following: • FY21-22 Budget Overview • Property Tax Levy • Council Consensus • FY20-21 Update • General Fund • Special Revenue Funds • Enterprise Funds • Five Year Financial Forecasts Ms. Lindsay provided an overview of the budget calendar and process. She asked if there was Council consensus to increase the primary tax levy by 2%. Councilmember Tolmachoff asked if there was a dollar amount the tax levy increased, as properties were added and assessed values increased. Ms. Camacho said the average was approximately 1 %. Councilmember Tolmachoff said several properties were annexed into the City. She asked if the increase was projected to be higher than 1 %. Ms. Camacho said, based on historical information, it fluctuated between 1 % and 2% on average. Vice Mayor Malnar was not in favor of increasing the property tax levy. Councilmember Clark agreed with Vice Mayor Malnar. She would not support an increase in the tax levy. Councilmember Tolmachoff did not support the tax increase. City Council Meeting Minutes - January 12, 2021 Page 3 of 9 Councilmember Hugh agreed to leave the rate as it was. Councilmember Aldama was not in favor of raising the rate. Councilmember Turner did not see a necessity to raise the property tax rate. Mr. Phelps said staff was not recommending an increase but wanted to confirm Council policy. Mayor Weiers said there was not a need to increase the tax. Councilmember Tolmachoff asked for clarification of the Capital Improvement Projects (CIP) discussions and the capacity available. Ms. Rios would provide two scenarios - projects with available authority until 2022 and what could be done with a bond election in 2022. Ms. Rios confirmed consensus to keep the property tax levy flat. Councilmember Aldama asked if the proceeds from the Bank of America building sale were included in "other revenue." Ms. Camacho said it was included in the FY19-20 revenue. Councilmember Aldama asked the total amount for vacancy savings. Ms. Camacho said the estimated savings through November 2020 was approximately $3.3 million. Councilmember Aldama asked for a benchmark of the remaining $3.3 million in vacancy savings and where the funds were used. Ms. Camacho said staff would return with an update. Councilmember Turner asked if the retail sales tax increase was due to an increase of retail activity or the taxation on internet sales. Ms. Camacho said it was a combination of both. Councilmember Tolmachoff asked what the reduction was due to the CARES Act funds. Ms. Camacho would provide the information to Council. Councilmember Aldama asked for the amount received in sewer revenue. Ms. Camacho would provide the information to Council. Councilmember Aldama asked if sewer rates were established between January and April. Ms. Camacho said the rate was based on January consumption. Ms. Rios said a breakout of water and sewer revenue could be provided. Ms. Camacho said sewer revenue was $15 million and water revenue was $29.5 million through November. City Council Meeting Minutes - January 12, 2021 Page 4 of 9 Councilmember Aldama asked for an explanation of the increase to the Vehicle Replacement fund. Ms. Camacho said the fund was reduced to $1 million in FY20 due to economic uncertainty because of the pandemic and was restored to $2 million for FY21. Councilmember Aldama asked if, because of the pandemic, the number of vehicles could be reduced so that the fund remained at $1 million. Mr. Friedline explained the lifecycle of vehicles and the costs to keep vehicles in good operating condition to reduce maintenance costs. Changes would be made based on how the pandemic panned out in the budget year. Councilmember Aldama asked for justification for the $1 million increase. Councilmember Tolmachoff asked if the increase was because of the purchase of electric vehicles. The number of vehicles in the motor pool had previously been reduced. Ms. Rios said the fund covered all City vehicles except for fire trucks. Mr. Friedline said the justification would include information on the motor pool and electric vehicles. Councilmember Tolmachoff would like to discuss City vehicles. She asked if the addition of $500,000 to parks maintenance was year -over -year or one-time. Ms. Camacho said it was $500,000 year -over -year. Councilmember Tolmachoff wanted the savings from Glen Lakes maintenance to be used for the additional parks maintenance costs. Ms. Rios said the funding for Glen Lakes had already been used by the department. The justification for the $500,000 would be presented as part of the supplementals during the budget process. Councilmember Tolmachoff reiterated her preference that maintenance savings from Glen Lakes be used within the department for other parks. Mr. Phelps said the assumption was based on prior discussions with Council and the desire to increase the level of daily maintenance within the parks. More detailed information would be provided during the budget presentation. Councilmember Turner did not think $500,000 was enough to cover the deferred maintenance costs. He encouraged Council to be open-minded about adding more to parks maintenance to keep the level of service ongoing. Councilmember Turner asked if the $1.7 million for Camelback Ranch was deferred maintenance or the City's contractual obligation. Mr. Friedline said the detail in justification would be best shown during the budget process. Councilmember Turner wanted to be sure costs were not absorbed by the City that actually belonged to Major League Baseball. City Council Meeting Minutes - January 12, 2021 Page 5 of 9 Councilmember Clark recalled a five-year plan of rate increases for enterprise funds. She asked when the plan terminated. Ms. Rios explained a five-year rate study was done but Council adopted rate increases in two-year increments. Staff was in the process of conducting a rate study and Water Services would hold a workshop with a timeline for future increases. Councilmember Clark would not support water rate increases. Councilmember Turner said there was an ending working capital shortfall of $25 million in FY25-26 in water and sewer enterprise funds. He asked what happened if the City maintained a level rate. Ms. Rios explained the five-year forecast for water and sewer and provided examples of how it could be managed. Councilmember Tolmachoff asked if the operating revenue calculations assumed there was not a rate increase. Ms. Rios said that was correct. For purposes of the forecast, beyond January of FY20, rate increases were not assumed. 3. PENSION FUNDING POLICY Presented by: Lisette Camacho, Director, Budget and Finance Rebecca Chitwood, Controller, Budget and Finance Ms. Bower read the item by title. Mr. Phelps said Arizona House Bill 2019 passed into law on April 3, 2018 and required municipalities to adopt a pension funding policy for the Public Safety Personnel Retirement System (PSPRS). Council adopted Resolution No. R19-70 on June 25, 2019 that established the City's pension funding policy. Council requested an increase in the amortization period up to 25 years. The PSPRS had not approved or denied the City's request but until the request was approved, the unfunded liability was still being calculated based on the 20 -year amortization period. He said the issue was the subject of current litigation. Ms. Chitwood presented the following: • The funding ratio goal was 100% (fully funded) by June 30, 2037 • Based on the June 30, 2019 actuarial valuation • Council planned on paying off the 20 -year amortization period • Maintain required contribution payment from operating funds • Formally accepted assets, liabilities, and current funding ratio • Assets of $300 million • Unfunded accrued liability of $271.8 million • Funded ratio of 52.5% • Did not preclude the City from making additional contributions Ms. Rios said staff would present a plan to potentially pay off the unfunded liability using a financing mechanism. City Council Meeting Minutes - January 12, 2021 Page 6 of 9 4. COUNCIL SELECTION OF VICE MAYOR Presented by: Brent Stoddard, Deputy City Manager Ms. Bower read the item by title. Mr. Stoddard said the City Charter required Council to appoint from its membership, one person to serve as the Vice Mayor at the first workshop meeting in January of each year. It was a one-year term. The item was on the agenda of that night's voting meeting. He asked for nominations. Councilmember Tolmachoff intended to nominate Councilmember Hugh at the voting meeting. Councilmember Clark agreed with Councilmember Tolmachoff and would second the nomination. No other nominations were made. CITY MANAGER'S REPORT Mr. Phelps provided an update on the maintenance coordinated by the Transportation Department in the downtown area. Mr. Phelps said a high-resolution weather camera was installed on top of the City Hall building. The camera would be used by Channel 3 and Channel 5 newscasts. Mr. Phelps said the United States Department of Treasury announced the release of an additional $25 billion in new emergency rental assistance to cities as part of the new COVID response package. The City would be eligible to receive the funds. Mr. Phelps said the Live at Murphy Park series had a tentative start date of April 2021. Mr. St. John provided an update on vaccinations being provided at the State Farm Stadium and a rapid COVID testing site located at 61st Avenue and Bell Road. CITY ATTORNEY'S REPORT No report COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Aldama asked if the City was required to allow newspaper dispensing boxes within the City. If it was required, were there regulations for the boxes. Many of the boxes were empty and damaged. He requested an informational memo. Councilmember Aldama said two of his outstanding items of special interest had not been addressed per the policy. Councilmember Clark encouraged staff and the public to sign up for a COVID vaccination. Councilmember Clark had received several complaints regarding fireworks. She asked staff to check with other cities for support with the creation of an amendment to the State fireworks statute. City Council Meeting Minutes - January 12, 2021 Page 7 of 9 Councilmember Clark asked staff for a report on the plan to redistrict the City. Councilmember Tolmachoff amended her previous item of special interest regarding bond elections. She requested historical information on how the bond elections were conducted in the past and what template was used to hold a successful election. Councilmember Turner requested a report from staff regarding complaints received for fireworks. He asked if technology similar to shot spotter could be used to pinpoint locations for fireworks. Councilmember Turner had previously requested an item of special interest regarding redistricting but had received no updates. Mayor Weiers asked Mr. Phelps to introduce the newest member of the leadership team. Mr. Phelps introduced the new Development Services Director, Jamsheed Mehta. Mayor Weiers requested a report from Presiding Judge DiPiazza by the end February 2021 regarding a plan to implement a veteran's court in the City. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Lauren Tolmachoff, seconded by Councilmember Joyce Clark 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 2:35 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); • Discussion and or consultation, to consider its position, and to provide instruction/direction regarding the employment of the City Manager pursuant to A.R.S. § 38-431.03(A)(1)(4); and • 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)(7) A motion was made by Councilmember Ian Hugh, seconded by Councilmember Lauren Tolmachoff to adjourn the executive session. AYE: Mayor Jerry Weiers City Council Meeting Minutes - January 12, 2021 Page 8 of 9 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 4:22 p.m. ADJOURNMENT Mayor Weiers adjourned the meeting at 4:22 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 12th day of January, 2021. 1 further certify that the meeting was duly called and held and that a quorum was present. Dated this 20th day of January, 2021, Julie K. Bower, MMC, City Clerk City Council Meeting Minutes - January 12, 2021 Page 9 of 9