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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 1/24/2023City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 C 0%.- &7 Glendale A R I Z O N A Meeting Minutes Tuesday, January 24, 2023 12:30 P.M. Workshop Meeting Council Chambers City Council Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh 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 Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner Also Present: Kevin Phelps, City Manager Michael Bailey, City Attorney Julie K. Bower, City Clerk WORKSHOP SESSION 1. LA POUR, AN-245 ANNEXATION LOCATED NORTH OF THE NORTHWEST CORNER OF BETHANY HOME ROAD AND LOOP 303. Presented By: Tabitha Perry, Planning Manager Ms. Bower read the item by title. Ms. Perry said the vacant 9-acre property was located north of the northwest corner of Bethany Home Road and the Loop 303. The current County zoning was RU-43, which was similar to RR-45 in the City. The proposed PAD (Planned Area Development) would allow for heavy commercial and light industrial land uses. The applicant was purposing a 20,000 square foot building. Ms. Perry said fiscal impacts included one-time fees estimated at $100,000 and an annual net benefit to the City of $27,000 per year. Staff was seeking consensus to move forward with the annexation process. Councilmember Turner asked for clarification regarding the revenue and net benefit amounts. Mr. Phelps said the blended assumption of the two was the ongoing revenue and $100,000 would be one-time revenue. Councilmember Turner said the one-time revenue was $36,000 and ongoing was $27,000 per year. Mr. Phelps said that was correct. Councilmember Turner said the presentation had indicated the one-time revenue was $100,000 and the ongoing was $27,000. Mr. Huggins said the revenue was $36,000 and the cost to the City was $9,000. The difference of those figures was $27,000 for the annual net benefit to the City. City Council Meeting Minutes - January 24, 2023 Page 2 of 14 Councilmember Tolmachoff asked if there were any anticipated uses for the parcel. Ms. Perry said the initial proposal was for a 20,000 square foot building but could change to something larger by the time it became a PAD. Councilmember Tolmachoff said the proposed use would be for the storage of equipment. She asked the large parking area meant the storage would be located outside. Ms. Perry said that was correct. The proposal could change with the entitlements or a different end -user. Councilmember Tolmachoff asked if the projections and ongoing revenues anticipated rental taxes. Ms. Perry said the projections included lease rental taxes. Mayor Weiers confirmed consensus to move forward. 2. CITY OF GLENDALE RIGHT-OF-WAY LANDSCAPE PLAN FOR COUNCIL CONSENSUS Presented by: Shahid Abbas, Director Transportation Ms. Bower read the item by title. Mr. Abbas provided a presentation on the Right -of -Way (ROW) Landscape Plan. The presentation included a proposed Right -of -Way Maintenance Plan, which consisted of catching up and keeping up with maintenance. He provided information on the following: . Plan Objectives . Right -of -Way Maintenance Map . Catch-up Budget . Trees in Right -of -Way . Considerations . Existing City Standard . Drought Friendly Plan . Grass Medians Concept . Water Use . New Standard *Proposed Plan Costs Mr. Abbas provided information on proposed plan costs, which consisted of a seven-year plan to restore rights -of -way to the proposed drought -friendly City standard. There was $550,000 in the catch-up budget and an additional $889,000 per year, for seven years was needed to restore 35 miles of landscape and $553,000 for the first three years to convert grass medians to the proposed drought friendly plan, which totaled approximately $4 million over seven years. Approximately $473,000 would be needed annually to maintain the program once it was fully implemented. Vice Mayor Clark was in support of the project. Councilmember Malnar supported the program and the acceleration of the program if additional funds were available. Councilmember Tolmachoff was pleased with the program and expressed the importance of City Council Meeting Minutes - January 24, 2023 Page 3 of 14 the City's curb appeal. She asked if consensus was required for the program to be included in the budget. Mr. Phelps said the program would be included as part of the balanced budget proposal. Councilmember Tolmachoff asked how the program would move forward in terms of priority. Mr. Abbas said staff had an inventory of existing landscape and trees with priority areas determined. Councilmember Tolmachoff asked if smart irrigation would work in areas that used effluent water. Mr. Abbas said staff planned to remove the grey water and use clean water with smart irrigation. The estimated water savings would be close to 30% with the new program. Councilmember Tolmachoff said the water would then be recharged. Mr. Abbas said that was correct. Councilmember Turner supported the program but wanted to avoid the desertification of the original downtown historic neighborhoods. Many of the downtown trees and landscaping appeared on the low water use landscape plan. He asked if there was a plan to keep water going to the large established trees in the medians. He was concerned about the maintenance and over -pruning of the shrubs in the rights -of -way. Councilmember Aldama said public input was important. He asked if staff was planning to remove all of the natural turf and replace it with artificial turf. Mr. Abbas said that was correct. The City would have standardized landscaping and there would be public outreach on plant preferences. Councilmember Aldama supported the plan and was pleased with results in the Ocotillo District. He asked why the program was not being presented during budget discussions and whether that would delay the plan. Mr. Phelps said the project was a high priority for Council and a workshop session allowed for a separate discussion and adjustments prior to budget discussions. Councilmember Aldama asked if there would be a delay in the program by waiting on funds from the new budget versus within the current budget. Mr. Phelps said staff could research the request and return to Council with potential options to accelerate the program. Vice Mayor Clark said because there was Council support, the project should move forward with spring plantings in anticipation of the budget additions. Mayor Weiers confirmed consensus on the proposal. 3. COUNCIL ITEM OF SPECIAL INTEREST: VETERANS COMMUNITY PROJECT Presented by: Jean Moreno, Director, Community Services City Council Meeting Minutes - January 24, 2023 Page 4 of 14 Ms. Bower read the item by title. Ms. Moreno provided a follow-up to the Council Item of Special Interest requested by Mayor Weiers in November 2022 to explore the potential of bringing the Veterans Community Project (VCP) to a City -owned site at 63rd Avenue and Grand Avenue. The project would provide transitional housing for homeless veterans. A typical 50-unit project would require a $10 million capital investment and approximately $2 million in ongoing operations. The model relied on philanthropic funding for capital and ongoing needs. With Council consensus, the VCP National Expansion application would be completed, and staff would conduct site visits. Councilmember Tolmachoff had visited the project in Kansas City and was in favor of moving forward. She asked if all seven parcels at the site were acquired with transportation funds. Ms. Moreno said additional research was required to determine how the parcels were obtained. Councilmember Tolmachoff said, based on the size of the projects in Kansas City and Colorado, all seven parcels might not be needed for the project. Ms. Moreno said a feasibility study would be needed on the parcels to determine if they were suitable for the development. Councilmember Tolmachoff asked if another location would be identified if the proposed site was not suitable. Ms. Moreno said that was correct. Councilmember Turner supported moving forward but expressed concern with the proposed location. There might be other ways to acquire land not owned by the City in a better location. Vice Mayor Clark was concerned that veterans were being used to introduce the concept of tiny homes to Glendale. She asked if there were other cities that embraced tiny homes. Ms. Moreno said Phoenix and Tempe had tiny container home villages at market -rate. She would follow up with more information. Vice Mayor Clark was concerned with the concept of tiny homes, especially in the 85301 zip code. She asked what the role of the non-profit organization was within the project and whether funding shortfalls would have to be covered by the City. Vice Mayor Clark said if the land had been purchased with transportation funds there might be a requirement for reimbursement. She supported adequate housing for veterans but was concerned about the location and size of the tiny homes. Councilmember Aldama favored moving forward. He agreed 85301 and 85303 were a magnet for non -profits but it was due to the need. Councilmember Malnar supported moving forward on the project. He asked about zoning for the property. Ms. Moreno said the parcel would require rezoning and would most likely be zoned as a PAD (Planned Area Development). Councilmember Hugh was in support of moving forward. City Council Meeting Minutes - January 24, 2023 Page 5 of 14 Councilmember Aldama suggested looking into the Lazy J property. It had access to transit and bus stops. Community input on the project was needed. Vice Mayor Clark did not object to helping veterans but was not in support of the introduction of tiny homes in Glendale, specifically in 85301. Councilmember Turner agreed with Councilmember Aldama's suggestion to consider the Lazy J location. He supported the use of tiny homes as a possible solution for several issues. Councilmember Tolmachoff asked about the tiny homes being built on a church property in Glendale that did not require rezoning. Ms. Moreno said Family Promise had a project in process on a church -owned parcel utilizing container homes. The process would go through the Arizona Department of Housing for permitting. Councilmember Tolmachoff was in support of additional research on the Lazy J property. Mayor Weiers confirmed consensus to move forward. 4. DOWNTOWN CAMPUS REINVESTMENT PROJECT UPDATE Presented by: Kevin R. Phelps, City Manager Guest Presenter: Holly Street Studios Ms. Bower read the item by title. Ms. Rios provided a presentation on the General Fund balance and reported the City was in good financial standing. Council could utilize the General Fund's one-time resources and the anticipated minimum $20 million in General Fund surplus for FY23, totaling nearly $70 million. Councilmember Aldama had requested a discussion on the reduction of the food tax, but it was not supported because of the negative impact on the budget. The presentation showed there were millions of dollars available. Mr. Phelps said it was an issue of ongoing revenues versus one-time revenues. The majority of the $39 million was from an aggressive construction market, but construction sales tax would not be sustainable. There were resources available for what Council might want to do on the Downtown Campus Reinvestment Project (DCRP). Vice Mayor Clark was in favor of repealing the food sales tax but asked where would funds come from when the one-time source was gone. She wanted to use the surplus money for the benefit of all Glendale citizens. Councilmember Turner said the surplus funds could be used in other ways to benefit the City. He wanted to find a moderate use for the funds throughout the City, rather than just the DCRP. Councilmember Tolmachoff said the City was running out of bond capacity and assumed a bond election would be held. The City must be prepared if bonds did not pass. She asked if the park bonds ran out in FY2024. Ms. Rios anticipated the park bonds to run out in FY2024-25. Councilmember Tolmachoff asked if another funding source would have to be found or the City Council Meeting Minutes - January 24, 2023 Page 6 of 14 Capital Improvement Plan (CIP) adjusted if there was no more bond authority. Ms. Rios said that was correct. Councilmember Tolmachoff said it was important to be financially prudent despite the current surplus fund balances. Councilmember Aldama expressed the need to be conservative with the DCRP. Gentrification was occurring because of the project. The Velma Teague was the oldest library in the City and had not been kept up to modern standards. Funds should be contributed to the library. Councilmember Turner said citizens would be more likely to support a future bond election if Council was a good steward of the current funds. Mayor Weiers was pleased with the fund balance report. Downtown Glendale needed to compete with other destinations and the project was a start that would benefit all taxpayers. Councilmember Aldama asked if the presentation on the fund balance was to justify moving forward with the $100 million aspirational project. Mr. Phelps said staff wanted to give Council an update on the status of the reserve funds but was not recommending the $100 million aspirational project. Councilmember Aldama said citizens were notified of a $71 million project and now there were options to go past $100 million. Mr. Phelps said staff wanted to provide several options. Council would align the priorities of the project with good financial decision -making. Councilmember Malnar said the financial information was an answer to the question asked at the last workshop regarding the source of additional funds if Council wanted to consider a larger project. Vice Mayor Clark said it was important to know resources were available for the path chosen by Council. The original goal was to develop the property for the resurgence and redevelopment of downtown Glendale. It was the opportunity for a new building that would exist for the next 50 years and draw residents from the entire City to the downtown area. Councilmember Hugh appreciated the good news on the funds available for financing the project. Diane Jacobs, Holly Street Studio, provided an update on the following topics: . Recap Previous Discussion . Review Available Funding . Recent Community Discussions . Review Cost and Benefit . Next Steps Councilmember Aldama said Council had requested input from the public, and he was not aware of the small stakeholder meeting referenced by Ms. Jacobs. He asked about the process for public outreach on the project. Ms. Jacobs said the public could utilize the website for ongoing conversations and there would City Council Meeting Minutes - January 24, 2023 Page 7 of 14 be broader community workshops once the design and scope was determined. The smaller focus group was a starting point. Councilmember Aldama was not satisfied with involving only five people for outreach on the project. He thought there would be public meetings regarding the project. Mr. Phelps would provide staff reports on the engagement plan. The small group of citizens indicated they could be more helpful if they were shown the design concepts and exterior building elevations. At every phase of the project, there was a defined time to go to the public for feedback. Councilmember Aldama asked if the purpose of the meeting was to ask Council for consensus on an option and dollar amount for the project. Mr. Phelps said that was correct. Councilmember Aldama said he could not provide consensus without input from the community. Mayor Weiers said the information would go to the public but indicated it would be challenging to go to the public without knowing what Council wanted to do. Vice Mayor Clark said the citizens elected members of Council to make decisions in the City's best interest. It was each Councilmember's responsibility to reach out to his or her constituents. She expected community involvement would be requested during the design stage. Councilmember Tolmachoff had not received the website link to send to her constituents. Three of the people in group were from the downtown area. The project represented all Glendale citizens. Councilmember Malnar understood why decisions on the design needed to be made during the meeting for the public to weigh in on and provide feedback. Council needed to determine a general plan to bring to the public for input. Mr. Phelps asked Council for the opportunity to continue with the presentation. Michael Jacobs, Holly Street Studio, presented information on the cost and benefit analysis of each of the options. Mr. Phelps asked if there was Council consensus on the cost of Base Option at $70.4 million, including inflation. Mayor Weiers confirmed consensus. Mr. Jacobs continued with safety and code compliance add-ons to the Base scope. Mr. Phelps asked if there was Council consensus on the cost of Base Option at $75.4 million, including inflation, compliance, and safety. Councilmember Turner asked for clarification of the American with Disabilities Act (ADA) access issues around Murphy Park. Mr. Jacobs said there were ADA access issues to the buildings and there were areas needing City Council Meeting Minutes - January 24, 2023 Page 8 of 14 proper drainage. The sidewalks would be part of the design discussion. Councilmember Tolmachoff asked if the compliance improvements would address ADA requirements for the whole campus. Mr. Jacobs said that was correct. Councilmember Tolmachoff asked if there was an assumption of a 10% contingency on all of the options. Mr. Jacobs said contingency was included within the construction budget. Mr. Phelps requested Council direction to add the safety and code compliance component into the base budget. Mayor Weiers said the addition to include the safety and code compliance was a requirement of the project. Mr. Jacobs said that was correct. Mayor Weiers confirmed consensus with the cost of the Base Option at $75.4 million, including inflation, compliance, and safety. Councilmember Turner said the delivery elevator could accommodate a gurney. He said updating the elevator bank would increase the cost of the project and affect multiple aspects of it. Mr. Jacobs said, as an architect, he could not renovate the building without an elevator that met code. Mr. Jacobs presented additional aspects for the Opportunity Option, including technology and building system upgrades at a cost of $82.7 million. Councilmember Tolmachoff asked if it was possible to build the roof but move the cooling towers in the future. She asked for the cost savings if the chillers were removed from project. Jesse Lee, Okland Construction, said there were benefits to moving to a new cooling system. It would pay for itself in a short amount of time and allow for $300,000 per year in energy and water savings. Mayor Weiers asked if the new system would have the capacity to provide heat. Mr. Lee said that was correct. Mr. Phelps said staff recommend the Opportunity Option for the project, as it was an investment in the building and its core elements. He estimated it would be a ten-year payback on the investment. He asked if there was Council consensus on the cost of Opportunity Option B at $82.7 million, including technology and building system upgrades. Mayor Weiers confirmed consensus. Mr. Jacobs presented cost benefits for Opportunity Option B, with specific additions to City Hall of $1.1 million, Murphy Park of $0.8 million, the Council Chambers interior of $2.5 million, and the garage skin of $2.8 million City Council Meeting Minutes - January 24, 2023 Page 9 of 14 Councilmember Tolmachoff said there would be elevators and fire exit stairs and questioned the need for open stairways between floors. Mr. Phelps said the communicating stairs made floors feel connected from an operating standpoint. It was a way to knit together one or two departments that were separate but worked together. It would also improve the light down to the 131 level and provide operational flexibility. Councilmember Tolmachoff was not convinced of the need for communicating stairs. The issue could also be addressed in another way, such as putting appropriate departments on the same floor. Vice Mayor Clark inquired about the $2.5 million to update the Council Chambers versus the cost in the Aspirational Option to move Council Chambers to the main building. She asked if the Council Chambers could be created in the new City Hall building for nearly the same amount. Mr. Jacobs did not have the information at hand. He said it would not be more and could be a little less. Mr. Phelps asked for Council consensus on any of the supplementals to Option B. There was $4.1 million in the current Council -adopted CIP, spent over several budget years, for updating Council Chambers. The scope of work with the architect did not include design elements for Council Chambers. Staff could come back with a small scope of work to start the design process and bring it back to Council for input. Vice Mayor Clark asked that staff include the cost of moving the Council Chambers into the main building. Mayor Weiers said there was a huge benefit in keeping the Council Chambers separate from the main business office, due to the evening meeting hours. Vice Mayor Clark suggested converting the current Council Chambers building into a gallery or meeting space for the public. It would provide entertainment options such as a library, amphitheater, and a gallery or museum that would bring people downtown on a regular basis. Councilmember Tolmachoff asked if the $4.5 million allocated for Murphy Park included shade structures. Mr. Jacobs said the supplemental was an opportunity for more shade. Councilmember Tolmachoff asked for confirmation there would be shade over the amphitheater when not in use. Mr. Jacobs said that was correct. Councilmember Tolmachoff asked for clarification of the garage skin. She asked if the cost of $17.5 million to move Council Chambers inside City Hall included outfitting the Chambers. Mr. Jacobs said that was correct. He would work with the team on the design of the garage. Mr. Lee explained the Base Option included paint and sprucing up one side of the garage. The extra $2.8 million would also include improvements of a higher level than paint and on three City Council Meeting Minutes - January 24, 2023 Page 10 of 14 sides of the garage. Councilmember Tolmachoff inquired if the right-of-way surrounding City Hall was included in the costs for the right-of-way landscaping plan. Ms. Rios said because it was a downtown campus, the right-of-way surrounding City Hall and the parking garage were maintained by the Parks Department. Councilmember Aldama asked for clarification of the garage skin. Mr. Jacobs said there were funds to repaint the garage within the Base Option. The supplemental would tie the garage in with the rest of the campus. Councilmember Turner supported adding additional landscaping to Murphy Park, however, was not in favor of adding additional structure to the park. He supported removing the sharp angle on the Council Chambers building for aesthetic reasons and removing the concrete second level. A connection from the garage to the City Hall entryway was needed. There would be more street parking for merchants if more City Hall users used the parking garage. The garage was originally screened by trees and suggested replanting new trees and repainting. Mr. Jacobs agreed and said he would explore why the trees did not hold up long term. Councilmember Malnar said there were some technology issues with the current Chambers. He suggested taking advantage of acting in the present versus in the future for a cost savings and the same for the garage. He wanted the project to be holistic and instill pride in Glendale. Mayor Weiers asked about the cost savings for the elevators. Mr. Lee estimated it would cost 20% more if the elevators were replaced at a later time. Mayor Weiers asked if there was consensus on Option B with all the supplementals, at a cost of just under $90 million. There was no consensus. Vice Mayor Clark asked for an option to consider moving the Chambers into the main building and asked for Council's consensus to consider the suggestion. Mayor Weiers confirmed consensus to consider the suggestion. Councilmember Turner supported updating the technology in the Chambers. He did not support changing the size of the Chambers. He was not in favor of $2.5 million in upgrades but was willing to support upgrades to make the interior more cohesive. Mr. Phelps said staff could work with the design team on a revised Chambers budget for a technology upgrade and a few other things. The executive session room was undersized and could be right -sized. Staff and the team could come back with a variety of scaled -down options for Council's input as well as a variety of alternatives for the garage skin. Councilmember Aldama suggested a renovation or refresh of Chambers, versus a remodel. He agreed the size should not be reduced and technology should be modernized. Mr. Jacobs presented cost and benefits for Aspirational Option C, which included relocating the amphitheater for $11.1 million, City Hall Level 5 shell of $5.7 million, and City Hall Level 5 of City Council Meeting Minutes - January 24, 2023 Page 11 of 14 $0.7 million. Vice Mayor Clark said it was an opportunity to expand for the next fifty years. It would be good to have the foresight to provide the flexibility for the space in the future when it might be needed. Councilmember Tolmachoff asked if additional space would be needed with the current options to place staff. Mr. Phelps said the question would require more research, however, having more staff at City Hall would provide synergy. He said with building efficiencies, a fifth level might not be necessary, but a deeper dive was needed. Councilmember Turner asked if more floor space was needed in the City Hall structure. He was interested in saving $6.4 million for the taxpayers. Councilmember Tolmachoff commented on flexible and hybrid work schedules for staff recruitment. Mayor Weiers asked for consensus on Option C. There was no consensus. Mr. Jacobs presented next steps for the project. Mayor Weiers asked about the plan for community involvement. Mr. Phelps said staff would come back to Council with an updated outreach plan. Mayor Weiers said all taxpayers were funding the project and public meetings should be held in at least three different locations. Councilmember Turner asked when Council would see floor plans. Mr. Jacobs said it would be in approximately four weeks. CITY MANAGER'S REPORT Mr. Phelps said staff would request that item 18 be pulled from tonight's voting meeting agenda and moved to the February 14th agenda. Mr. Phelps said Alaska USA Federal Credit Union would be expanding and changing its name to Global Credit Union. CITY ATTORNEY'S REPORT No report City Council Meeting Minutes - January 24, 2023 Page 12 of 14 COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Tolmachoff requested a policy discussion regarding the timing on receiving information that accompanied presentations. Councilmember Turner agreed with the request by Councilmember Tolmachoff. Vice Mayor Clark agreed with the request by Councilmember Tolmachoff. Vice Mayor requested research on the possibility of designating certain areas in Glendale as legal areas to shoot off fireworks during the state -mandated prescribed periods. Mayor Weiers congratulated Mr. Phelps on his seven-year anniversary with the City. He thanked him for all of the work he had done and his dedication to Glendale. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Vice Mayor Joyce Clark, seconded by Councilmember Ian Hugh to hold an executive session. AYE: Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner Passed EXECUTIVE SESSION Council met in executive session at 4:24 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 City -owned property near 57th Avenue and Glendale Avenue pursuant to A.R.S. §§ 38-431.03 (A)(3)(4)(7) . 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 pursuant to A.R.S. § 38-431.03(A)(3)(4)(7) A motion was made by Councilmember Jamie Aldama, seconded by Councilmember Lauren Tolmachoff to adjourn the executive session. AYE: Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember Ian Hugh City Council Meeting Minutes - January 24, 2023 Page 13 of 14 Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner Passed Mayor Weiers adjourned the executive session at 5:20 p.m. ADJOURNMENT Mayor Weiers adjourned the meeting at 5:20 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 24th day of January, 2023. 1 further certify that the meeting was duly called and held and that a quorum was present. Dated this 6th day of February, 2023. ( ZZ4 � L . 04'K. Bower, MMC, City Clerk City Council Meeting Minutes - January 24, 2023 Page 14 of 14