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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 9/28/2021 (3)Glendale 5850 West Glendale Avenue Glendale, AZ 85309 Glendale A R I Z O N A Meeting Minutes Jay, September 28, 2021 12:30 P.M. Workshop Meeting Council Chambers City Council Mayor Jerry Weiers Vice Mayor Ian Hugh Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ray Malnar 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 Ian Hugh Councilmember Jamie Aldama Councilmember Joyce Clark 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 Jack Friedline, Assistant City Manager WORKSHOP SESSION PRESENTATION ON THE CITY'S INVESTMENT PORTFOLIO Presented by: Lisette Camacho, Director, Budget and Finance Levi Gibson, Assistant Director, Budget and Finance Ash Mehta, Vice President, Public Trust Advisors Ms. Bower read the item by title. Mr. Mehta said Arizona Revised Statute (ARS) 35-323 allowed the City to invest in specific areas. He provided an overview of the City's Investment Policy and Strategies. Councilmember Clark asked how Congress' decision impacted the economic forecast. Mr. Mehta said it would push out the slowdown of the economy since the amount of funds available would be increased. Councilmember Clark asked for clarification on the June 30. 2020 and June 30, 2021 figures for Net Unrealized Gain/Loss. Mr. Mehta said it was due to maturities within the portfolio. Ms. Camacho said the unrealized gains were realized as time passed, which caused the decrease. Councilmember Clark said as the investments were sold, they became realized gains. Ms. Camacho said it was as the investments matured. Councilmember Tolmachoff said the funds from the liquidation of an asset were placed in the General Fund. Instead of the General Fund, would it meet the statutory City Council Meeting Minutes - September 28, 2021 Page 2 of 11 requirements if the funds were reinvested. Mr. Mehta would provide information to Council. 2. ORGANICS LOOP 303 ANNEXATION APPLICATION AN -229 FOR 75 ACRES LOCATED AT THE SOUTHWEST CORNER OF BETHANY HOME ROAD AND SARIVAL AVENUE Presented by: Tabitha Perry, Interim Planning Manager Ms. Bower read the item by title. Ms. Perry said the purposed annexation, Organics Loop 303 was a 75 -acre site located at the southwest corner of Bethany Home Road and Sarival Avenue. The proposal was to rezone the property from a County zoning of RU -43 to a Planned Area Development (PAD) for an industrial center similar to an M-1 light industrial zoning. Ms. Perry said one-time blended fees were estimated at $3.4 million and there was a possible net impact to the City of $180,000 per year, excluding one-time revenues. Staff was seeking input and direction on how to proceed with the annexation. Councilmember Tolmachoff asked if there was an easement required along the "no build line." Ms. Perry said the application was under review with Luke Air Force Base (LAFB) to make that determination. Mayor Weiers clarified the decision to build up to the "no build line" was set by statue. LAFB would determine whether it would create complications for flight operations. Councilmember Turner asked if low profile structures were allowed to be built beyond the "no build line," would the developer rearrange the concept to build more buildings. Ms. Perry was unaware of any changes to the layout, but staff would continue to work with the developer. Councilmember Turner asked if the no build area was a "crash zone" for LAFB. Ms. Perry said that was correct. Mayor Weiers asked if the height of the purposed buildings was known. Ms. Perry said the purposed building height was one hundred feet. Mayor Weiers expressed concerns about the building height. Mr. Phelps said the original height concerns were related to the location of LAFB's radar system. A study was conducted, and height was less of a concern. Councilmember Turner asked if the annual cost was known for future infrastructure maintenance. Mr. Phelps would obtain estimates from staff, including other possible income sources. City Council Meeting Minutes - September 28, 2021 Page 3 of 11 Councilmember Turner requested a more generational approach to the impact estimates. Councilmember Aldama asked what the $120,000 in projected expenditures would be. Ms. Perry said the projected expenditures included police and fire services as well as ongoing road maintenance. Councilmember Aldama asked at what point should a fire station be built farther west. Mr. Phelps recommended using call volume as the driver to implement a unit. Councilmember Aldama was concerned about possible hazmat situations with the type of businesses in the area. He asked how the $120,000 in projected expenditures was determined. Ms. Perry said Applied Economics provided the figures based on the type of proposed uses, level of services and street improvements. Mr. Phelps would engage with the consultant for additional information. Generally, businesses generated a net benefit back to the City. He would provide the information to Council with a report or through a future workshop. Councilmember Tolmachoff wanted to be sure all possible emergency responder information was taken into consideration for service call data. She was concerned about heavy trucks using the roadways and accelerated deterioration. Councilmember Clark said it would be useful to determine who oversaw the maintenance of roadways, either the County or the City, with any new annexations and developments. Mr. Phelps said Mr. Friedline was working with Maricopa County Department of Transportation to determine fair solutions for the County and the City. A report would be provided on the status of the discussions. Ms. Perry requested consensus to move forward with the annexation. Mayor Weiers confirmed consensus to move forward with the annexation. 3. PARKWAY 303 WEST ANNEXATION APPLICATION AN -231 - 262.6 ACRES LOCATED AT THE SOUTHEAST CORNER OF PEORIA AVENUE AND COTTON LANE Presented by: Tabitha Perry, Interim Planning Manager Ms. Bower read the item by title. Ms. Perry said the Parkway 303 West was a 262.6 -acre site located at the southeast corner of Peoria Avenue and Cotton Lane. The proposal was to rezone the property from a County zoning of RU -43 to a Planned Area Development (PAD) for commercial and industrial development. There were one-time fees for the project estimated at $13.8 million with possible net impact to the City of $1.2 million per year, excluding one-time revenues. Staff was seeking input and direction on how to proceed with the annexation. City Council Meeting Minutes - September 28, 2021 Page 4 of 11 Councilmember Tolmachoff asked if the Orchards Ranch was part of the annexation. Ms. Perry said it was not part of the annexation. Councilmember Tolmachoff asked if the site consisted of possible retail locations. Ms. Perry said the area was intended for commercial which could include retail. Councilmember Aldama suggested adding defined expenditures in the slides related to annexations. Ms. Perry requested consensus to move forward with the annexation. Mayor Weiers confirmed consensus to move forward with the annexation. 4. REVISED PAVEMENT PRESERVATION ORDINANCE Presented by: Don Bessler, Director, of Engineering; Ryan Lee, Intergovernmental Program Manager, Public Affairs Dan Cleavenger, Interim Transportation Director Ms. Bower read the item by title. Mr. Bessler provided an update on the revised pavement preservation ordinance. The item was previously discussed at the April 13, 2021 workshop and direction was given to create a formal ordinance. He provided information on the following topics: • Purpose of the Ordinance • Goals and Strategies • Stakeholder Input • Collaboration Councilmember Tolmachoff asked for clarification of Section 30-87, Termination. Mr. Cleavenger said it regarded the compliance requirements and termination of pavement cut permits. Mr. Bessler said it described the circumstances under which a permit could be terminated. Councilmember Tolmachoff asked if the City completed the unfinished work from a terminated permit. Mr. Bessler said the issues usually related to sub -contractors. The permit holder typically remedied the issues quickly. Mayor Weiers asked why both square yards and square feet were used in the examples. Mr. Cleavenger said the pavement industry used square yards. Square feet was the more common measurement for the presentation, but the examples were correct. City Council Meeting Minutes - September 28, 2021 Page 5 of 11 Mayor Weiers supported the proposed fee. Councilmember Tolmachoff asked if year one was eleven months or less, would twelve months be considered in the two-year category. Mr. Bessler said it was measured in twelve-month increments. He understood the confusion and the tables would be updated for the final ordinance. Mayor Weiers asked where the pavement age was available for the public to view. Mr. Cleavenger said the information was shared with the utility companies. A map with the information could be created and made available to the public. Mr. Bessler requested consensus to move the item forward to a voting meeting. Mayor Weiers confirmed consensus to move forward with the ordinance. 5. COUNCIL ITEM OF SPECIAL INTEREST - CITY OWNED PROPERTY UPDATE Presented by: Don Bessler, PWLF, Director of Engineering Jayme Chapin, P.E. Principal Engineer - Land Development Lisa Amos, Real Estate Program Manager Ms. Bower read the item by title. Ms. Chapin explained the Property Atlas was created to be a visual tool which covered the entire City with several layers of information. Ms. Amos provided information on the different types of tracts. Councilmember Turner asked if the 0.4 acre parcel on 43rd Avenue and Peoria Avenue was being looked at by the Salt River Project (SRP). Ms. Amos recalled the parcel was brought to the Council about a year ago and direction was given to move forward. Staff was in the preliminary stages of working through some restrictions. Councilmember Turner recalled a plan presented to Council in 2010 regarding a gateway to the City and did not want the original intention for the parcel to be lost. Councilmember Aldama requested that a list of criteria for the potential sale of City -owned property be created. Ms. Chapin said Water Services conducted studies of remnant parcels that were not needed for its operations. Ms. Amos said the properties within the downtown area were overseen by the Economic Development Department. Mr. Phelps said the Property Atlas tool would assist Council with identifying potential parcels. The goal was to have an interactive map for Council to be able to see information on all parcels within the City. Information would be added in real time and other departments would have access to the maps as well. City Council Meeting Minutes - September 28, 2021 Page 6 of 11 Councilmember Tolmachoff asked if the information would be available to potential developers. Mr. Phelps said the first phase was to have the tool available for internal use and then become available to the public on the City's website. 6. WATER RESOURCES UPDATE Presented by: Craig Johnson, P.E., Director, Water Services Drew Swieczkowski, Water Resources Manager, Water Services Joanne Toms, Environmental Programs Administrator, Water Services Ms. Bower read the item by title. Mr. Johnson provided an overview on where the City stood in regard to water resources including: • City's water supplies • Current conditions for SRP and Central Arizona Project (CAP), including Tier 1 shortage on the Colorado River • City's Drought Management Plan • City's water conservation programs Councilmember Clark asked if desalination was an option that had been explored. Mr. Swieczkowski said the Governor's Office created a Water Council to look at options that included desalination. Mayor Weiers asked if the Drought Management Plan was for City water and not SRP irrigation. Ms. Toms said that was correct. The plan was for the City's metered water. 7. AMERICAN RESCUE PLAN ACT (ARPA) Presented by: Vicki Rios, Assistant City Manager Lisette Camacho, Director, Budget and Finance Jean Moreno, Director, Community Services Levi Gibson, Assistant Director, Budget and Finance Ms. Bower read the item by title. Mr. Phelps said the goal was to obtain general policy direction from Council and then follow-up with a future workshop. Ms. Camacho provided background information on the ARPA funding. The Act was passed by Congress on March 10, 2021 and signed into law on March 11, 2021. The City received $29,758,305 in May and the final distribution was expected in May 2022. Both disbursements would total $59,516,611. The presentation covered the following topics: • Background City Council Meeting Minutes - September 28, 2021 Page 7 of 11 • Funding Objectives • Eligible Uses of Funds • Ineligible Uses of Funds • ARPA Strategy • Council Feedback and Next Steps Councilmember Tolmachoff asked the meaning of "landlord retention." Ms. Moreno said it was difficult to locate affordable housing so sharing program benefits and creating incentives programs was necessary to obtain and retain landlord clients. Councilmember Tolmachoff asked if it was difficult to locate businesses with five for fewer employees for the business grant. Ms. Moreno said some applicants did not show a loss on paper, but the issue was employee retention. Councilmember Tolmachoff asked if any discussion was held on expanding qualifiers. Ms. Moreno said the limitation was set by Housing and Urban Development (HUD) Regulations for small businesses. Councilmember Clark asked how cybersecurity technology fit in with COVID-related operating expenditures. Ms. Rios said it was specific items allowable by legislation to secure the City's public infrastructure. Councilmember Tolmachoff asked if there were reductions in special events staff. Ms. Rios said it was not a reduction in staff. Funds had not been spent on special events during that period. Councilmember Clark was interested to see how the staffing levels going forward would be paid, after the ARPA funds were used. Ms. Rios said it was restoring staffing levels for the budgeted amounts. Councilmember Tolmachoff said the Water Services Enterprise Fund was owed $13,458,750 because of funds given to the National Hockey League (NHL). Water infrastructure was an eligible expense. The funds could be used to fund Water Capital Improvement Projects (CIP) instead of using bonds. It would also result in $3.9 million dollars in interest. She hoped to have a discussion on the matter. Mr. Phelps said the discussion was to determine the amount of funds that could be applied toward priorities and then return for further discussion. When it was determined that there was an excess amount of General Fund, further discussions could be held for Council to determine its new priorities. Councilmember Tolmachoff said her proposal was to use ARPA funds for Water CIP instead of having to go out to bond. City Council Meeting Minutes - September 28, 2021 Page 8 of 11 Mr. Phelps said the discussion was related to budgeted items. Once there was a dollar amount, a future workshop would be held to determine how to allocate the funds. Councilmember Clark was in favor of moving forward with the presented strategy. Mr. Phelps shared what the next steps would be to determine Council priorities. Councilmember Clark said Council priorities would be approached holistically and discussed at a future workshop. Mr. Phelps said that was correct. Ms. Rios requested consensus and approval of the strategy to find eligible General Fund expenses that could use ARPA funds and allow the City more flexibility. Some items not budgeted would need Council approval during the regular budget process. Councilmember Tolmachoff said her request to use the ARPA funds for water infrastructure did not need to go through the General Fund. Mr. Phelps said it did not eliminate using the funds for Water infrastructure but to determine Council priorities and return to Council for a workshop. Councilmember Tolmachoff asked if the City was receiving less funds due to the Census number. Ms. Rios said the Treasury Department had not indicated that would be the case. The City would be required to follow the reporting requirements for cities with a population of 250,000. Councilmember Malnar was in favor of moving forward with the plan and prioritizing for the benefit of the community. Councilmember Aldama supported moving forward with the strategy. He asked for Mr. Phelps to bring forward the cost for the amphitheater and City Hall rebuild using the General Fund, once available. Mr. Phelps anticipated a workshop discussion to be held in the near future regarding the City Hall rebuild. Councilmember Turner said the additional revenue would free up funds that could be used on other Council priorities. Ms. Rios said $60 million was put into contingency and would need to be appropriated in order to be spent. Councilmember Turner said in order to use the contingency funds, a specific project would need to be identified. Ms. Rios said that was correct. Some projects might need to be budgeted over several years so it would be necessary to have the discussion during the budget cycle. Mr. Phelps said projects could be allocated, created and a scope of work developed but only a small amount of the funds would be used the initial year. City Council Meeting Minutes - September 28, 2021 Page 9 of 11 Ms. Rios said the deadline to encumber the funds was December 31st, 2024. The funds had to be spent by December 31, 2026. Vice Mayor Hugh was in favor of moving forward with the strategy. Mayor Weiers confirmed consensus to move forward. CITY MANAGER'S REPORT Mr. Phelps said Ballet Under the Stars, presented by Ballet Arizona, would take place at Sahuaro Ranch Park on Thursday, September 30th. Mr. Phelps said the LIVE! @ Murphy Park concert series started Friday, October 1st and would continue through the end of October. Mr. Phelps said the reconstruction of Glendale Avenue between EI Mirage Road and 99th Avenue was 70% completed. The project was on schedule to be completed by February 2022. CITY ATTORNEY'S REPORT Mr. Bailey said staff would be bring forward proposed changes to the order of the agenda at a future meeting. COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Aldama requested a Citywide ordinance, similar to the City of Mesa, in regard to illegal activities within massage parlors. Councilmember Clark expanded on her previous request regarding overlay districts to include various types of overlays to be applied throughout the City. Councilmember Malnar agreed with Councilmember Aldama's request. Vice Mayor Hugh also was in favor of moving forward with Councilmember Aldama's request. EXECUTIVE SESSION None ADJOURNMENT Mayor Weiers adjourned the meeting at 4:07 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 28th day of September, 2021. 1 further certify that the meeting was duly called and held and that a quorum was present. City Council Meeting Minutes - September 28, 2021 Page 10 of 11 Dated this 11th day of October, 2021. J K. Bower, MMC, City Clerk City Council Meeting Minutes - September 28, 2021 Page 11 of 11