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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 3/7/2023City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 C05%k &7 Glendale A R I Z O N A Meeting Minutes Tuesday, March 7, 2023 9:00 A.M. Budget Workshop Meeting Council Chambers City Council Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember tan Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner CALL TO ORDER Mayor Weiers called the meeting to order at 9:00 a.m. ROLL CALL Present: Mayor Jerry Weiers Councilmember Jamie Aldama Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner Absent: Vice Mayor Joyce Clark Also Present: Kevin Phelps, City Manager Michael Bailey, City Attorney Julie K. Bower, City Clerk Vice Mayor Clark arrived at 9:07 a.m. WORKSHOP SESSION FY23-24 BUDGET WORKSHOP Presented by: Levi D. Gibson, Director, Budget and Finance Amy Lindsay, Budget Administrator, Budget and Finance Ms. Bower read the item by title. Mr. Gibson presented information on the FY24-33 Capital Improvement Plan (CIP) and the following topics: . Follow up Items from February 14, 2023 Workshop . ARPA Update *Capital Improvement Plan Overview . Capital Improvement Plan Projects . Council Feedback and Questions Mr. Gibson provided the Arizona Sports & Tourism Authority (AZSTA) payment schedule for FY20 through FY31. Councilmember Aldama asked why the payment amounts varied year-to-year. Mr. Gibson said the FY20 through FY23 amounts were based on actual receipts. FY24 and forward were forecasted on anticipated revenues and AZSTA's payment schedule priorities. Councilmember Tolmachoff said AZSTA's funding source expired in 2030. Mr. Gibson said that was correct. The City received two payments annually and the final payment would be in FY31. Mr. Gibson presented a Budget to Actual Comparison for City Sales Tax for FY22. Ms. Rios presented a City Sales Tax by Category for FY18 through the first six months of City Council Meeting Minutes - March 7, 2023 Page 2 of 11 FY23. It was in response to a request for a breakdown of the following categories in the City Sales Tax: Residential Rental, Commercial Rental, Food for Home Consumption, and Wayfair Retail Sales. Councilmember Aldama asked if the FY22 total of $17.3 million consisted of 1.9% for General Fund, 0.1 % for Public Safety and 0.5% for Transportation. Ms. Rios said that was correct. Ms. Rios said there had been a request to research if other cities had a similar tax code to the City's retail tax on sales over $5,000. There were 28 cities with a similar code. The amount of the base sales was different, ranging from greater than $2,500 to $10,000. Councilmember Turner said Ms. Rios had confirmed previously that the tax also included used vehicles, generally provided through a licensed dealership, not a private party. Ms. Rios said that was correct. Ms. Rios provided follow-ups on the following: . Sales tax rates of peer cities in the Valley . Whether the City was able to recoup street scalloping costs from developers when development went into an improved area . ARPA strategy and funding. Councilmember Tolmachoff asked if the retail sales over $5,000 included sales within the stadium footprint that was remitted to AZSTA. Ms. Rios said the sales consisted of sales conducted at the stadium and within City limits. The General Fund portion of the sales tax was remitted to AZSTA. The City retained the Public Safety and Transportation sales tax. Councilmember Tolmachoff asked if the sales tax figures were on a gross basis. Ms. Rios said that was correct. Councilmember Tolmachoff asked if Council would see the details on the figures remitted to AZSTA. Ms. Rios said that was part of the non -departmental budget, and the information could be provided during that specific section of the all -day budget workshop. Ms. Lindsay provided an overview of the CIP including the process and funding sources. She also presented an overview of the FY24-33 Airport CIP. Vice Mayor Clark requested that staff indicate new projects by department throughout the presentation. Ms. Lindsay provided the new projects for the Transportation Department for FY24. Vice Mayor Clark asked about the South Apron Reconstruction Phase 3 project for FY24. She asked why the project was listed at $2 million when the City's portion was estimated at $230,000. The reimbursement would go back into the fund from which the project was allocated. City Council Meeting Minutes - March 7, 2023 Page 3 of 11 Vice Mayor Clark asked if the reimbursed funds could be used for another project. Ms. Rios said that was correct, but funding would have to be appropriated for a new project. Council would be informed if that occurred. Councilmember Tolmachoff requested identification of the funding source for new projects and if a grant was being used. She suggested a separate sheet for all new projects. Ms. Rios said the information regarding new projects was included in the 'change document.' Ms. Lindsay said the information was included in the slide deck, not in binders. Councilmember Tolmachoff requested it to be included in the binders. Councilmember Aldama requested justification for the Airport projects. Shahid Abbas, Transportation Director, said the Airport's Five -Year ACIP was done in conjunction with the Federal Aviation Administration (FAA) and the Arizona Department of Transportation (ADOT). The FAA would not give the Airport the final grant until the project was advertised and bids were received. The FAA provided the appropriation based on the final bid price. The projects in the 5-Year Airport CIP were nearly guaranteed FAA funds because of the coordination upfront to identify projects between the Airport, FAA, and ADOT. He said the projects in the Airport CIP were deferred maintenance because they were reconstruction projects. Councilmember Aldama asked for confirmation that some or all the Airport projects were deferred maintenance. Mr. Abbas said that was correct. Councilmember Aldama asked why the projects were deferred and were only recently brought into CIP. Mr. Abbas said by FY27-28, the runways, taxiways, and aprons would mostly be new pavement. There was continuous maintenance at the Airport granted by the FAA. Mr. Phelps said the word 'deferred' might not be the most accurate, rather 'anticipated deterioration of the asset' could be a better term. Mr. Abbas said the Pavement Management Program (PMP) was a separate Airport project that dealt with the ongoing pavement management issues at the Airport. Councilmember Turner said under the Financial Policy in the presentation the priorities were to improve existing assets first, then to replace existing assets as needed, and then to construct new assets. He suggested using a code in the chart to notate the project with the priority. Councilmember Tolmachoff asked for the definition of Channel IZ. Mr. Gibson said it meant channelization. Mr. Abbas said the City needed to re-channelize the river to expand the security zone around the Airport. City Council Meeting Minutes - March 7, 2023 Page 4 of 11 Councilmember Tolmachoff asked if Council approved the updated Airport Master Plan. Mr. Abbas said the Airport Master Plan was in the CIP and would be funded by the FAA. The Airport Master Plan project would begin in two years when the funding became available. Councilmember Tolmachoff asked if the $8.3 million over the next few years for the Southwest Apron Expansion was grant funding. Mr. Abbas clarified 80% was grant funding and 20% was a local match. Councilmember Tolmachoff asked if the expansion was part of the existing Master Plan or new Master Plan. Jamsheed Meta, Assistant City Manager, said the projects presented were part of the existing Master Plan. The projects would not be in the Airport CIP if they were not in the Master Plan. Ms. Lindsay provided an overview of the FY24-33 Arts CIP. Councilmember Turner said there were no capital projects shown in the current fiscal year, nor the next five. Ms. Lindsay said the Municipal Arts Program Project was the capital project that the department had in the CIP. She said capital -related art projects were charged to that project. Unexpended funds would roll over to the next year. Councilmember Turner said $2 million was moved from the fund in 2010 to the General Fund during the economic downturn. He would like to see the Arts Capital Fund be replenished over time. Councilmember Aldama asked when a consensus would be needed to replenish the Arts Capital Fund. Ms. Rios said a consensus would be needed for staff to research the proposal and determine its feasibility. Councilmember Aldama was in favor of the research, however, asked for restoration of the funds to be done incrementally. Councilmember Tolmachoff suggested repayments over three or four years. Mayor Weiers confirmed consensus. Ms. Lindsay provided an overview of the FY24-33 Drainage CIP. Vice Mayor Clark asked for the current authorization amount for flood control. Mr. Gibson said there was approximately $9.5 million of bonding capacity. Vice Mayor Clark asked if the $7.9 million in FY24 CIP projects would come from the $9.5 million in bonding. Ms. Rios said approximately $3.8 million in General Obligation (G.O.) Bonds would go toward the $7.9 million. City Council Meeting Minutes - March 7, 2023 Page 5 of 11 Vice Mayor Clark asked for confirmation that there were no new projects in Flood Control. Ms. Lindsay said that was correct. Ms. Lindsay provided an overview of the FY24-33 Facility Maintenance CIP. Vice Mayor Clark asked for a column to be added called 'Total Cost of the Project' on the project summary page with the blue header. Councilmember Tolmachoff asked about performance -based contracts of approximately $12 million. At the October 2022 Workshop, there was consensus to move forward with two contracts for a total of approximately $10 million. Under new projects, there were also performance -based contracts for approximately $8 million. She asked for clarification of the varying figures. Michelle Woytenko, Field Operations Director, said the performance -based contract number presented to Council in December 2022 had been updated by Budget and Finance. Councilmember Tolmachoff had received an email regarding her question. She asked for an explanation of the $2 million and if the $8 million was an additional performance -based contract. Mr. Phelps said his email response was made before the updated figures for the performance -based contracts. Ms. Woytenko said there was $8 million in last year's CIP for performance -based contracts and there was $2 million of capital in other projects, which had been consolidated. The additional $2 million change was due to inflation and for repair of the cooling tower. The additional savings would be noted and staff would provide a presentation to Council at a future date. Councilmember Tolmachoff asked if the new project for approximately $8 million was an additional project. Ms. Rios said the $8 million was being shown on a change document and was not a new project. The total project was $12 million. Councilmember Aldama asked if performance -based contracting was still needed for the City Hall project. Ms. Woytenko said the downtown campus was not included in the performance -based contract. She would share information with Council as the conceptual design moved forward. Energy and water savings were anticipated and would be shared with Council. Councilmember Aldama asked for confirmation that the $12 million in performance -based contracts did not relate to the downtown remodel. Ms. Woytenko said that was correct. Councilmember Tolmachoff asked about specific Government Facilities projects. Ms. Lindsay said the majority of FY24 and FY25 funds were for the Downtown Campus Reinvestment Project and the Glendale Operations Campus Project. Councilmember Tolmachoff asked if there were any placeholders in the CIP for any investment City Council Meeting Minutes - March 7, 2023 Page 6 of 11 in the Black Lot. Ms. Rios was not aware of any placeholders for the Black Lot. Vice Mayor Clark said the total for Facility Maintenance was $19,732,982. Nearly $20 million was added to the CIP without any real discussion except for the performance contracts in the workshops. Councilmember Aldama asked about a cemetery project. He recalled the cemetery was to be sold. He said the citizens should know the City was investing in the cemetery. Ms. Woytenko said there were several items in need of repair or replacement at the cemetery. Staff would come to Council with its proposal for the projects at the cemetery before any funds were spent. Councilmember Aldama asked if there was still capacity at the cemetery. Ms. Woytenko said there was capacity. Ms. Lindsay provided an overview of the FY24-33 Facility Maintenance CIP. Vice Mayor Clark asked for confirmation there were no new projects listed in the FY24-33 Facility Maintenance CIP. Ms. Lindsay said that was correct. Ms. Lindsay provided an overview of the FY24-33 Library CIP. Vice Mayor Clark said Council received an email noting the Heroes Park Library Community Room project was canceled, which totaled $1.7 million. She asked for Council consensus to reprogram the $1.7 million for the design of the Heroes Park recreation and aquatics center and to change the amount to $2.0 million. Councilmember Aldama said the Velma Teague Library had $6.2 million programmed for FY28. There were funds programmed for other libraries for FY24 through FY27. He asked why the investment in Velma Teague Library was so far out as it was aging and did not provide the services it could with reinvestment. He requested allocating funds towards the architectural design of the library. Mr. Phelps said the adopted CIP had $6.2 million in the FY28 budget year. He said Council could accelerate the timing of projects. Councilmember Aldama asked Council to expedite the CIP for the Velma Teague Library and suggested FY24 or FY25. Mayor Weiers asked if there was consensus to reprogram the funds for the canceled Heroes Park Library Community Room to the design of the Heroes Park Recreation and Aquatics Center. Councilmember Turner said the $1.7 million was G.O. Bond funds and asked if it could be used for community center design. He suggested using the funds for the Velma Teague Library, if the funds could not be reprogrammed at Heroes Park. Ms. Rios said the funds were library bonds and would need to be used toward a library. She City Council Meeting Minutes - March 7, 2023 Page 7 of 11 said staff could research another funding source for the design of the Heroes Park Recreation and Aquatics Center, if Council so desired. Mayor Weiers confirmed consensus for staff to move forward to determine if both projects could be done. Councilmember Tolmachoff asked if the Yucca District Meeting Space Study funds could be moved over to the Velma Teague Library Renovation. Ms. Rios said she would return with a follow-up regarding the Yucca District Meeting Space Study funds. She said if the $1.7 million had not yet been spent, nor the bonds issued, it could be changed. Mayor Weiers asked when the downtown City Hall remodel project would be finished. Mr. Phelps said the project would be completed in summer of 2025. The design team had been told to anticipate the redevelopment of the library. The library project could be done without disrupting the work done in Murphy Park. Councilmember Aldama suggested the design of Velma Teague Library could start now, and the project could begin in summer or late 2024 during the downtown remodel. Mr. Phelps said the appropriation would start July 1, 2023, and a separate RFQ process would be needed. He expected construction to begin the first quarter of 2025. Vice Mayor Clark supported improving Velma Teague, however, wanted to ensure there would be a call for citizen participation in the design of the library. She requested a full scope of the possibilities to modernize the library and make it useful for all generations. Councilmember Malnar suggested Council consensus to move $1 million from FY28-29 to FY24 for design and review in programming and move the FY28 balance to FY26 for the Velma Teague Library CIP. Ms. Rios asked if there was Council consensus to move the Velma Teague Library project forward, to allow staff to work with Engineering to determine the needs for the first and second year of the project. Staff could return to Council with a plan and an update. Councilmember Turner was willing to look at the needs of the Velma Teague Library. He was concerned about putting too much stress on the downtown and library systems. Mayor Weiers confirmed consensus for staff to research the opportunities to bring the Velma Teague Library project forward. Ms. Lindsay provided an overview of the FY24-33 Library CIP. Vice Mayor Clark said there were no new projects listed in the department. Ms. Lindsay said that was correct. Ms. Lindsay provided an overview of the FY24-33 Parks CIP. She noted three new projects in the CIP and provided funding information on the projects. Councilmember Aldama asked where the carryover for the Heroes Park Lake was allocated. City Council Meeting Minutes - March 7, 2023 Page 8 of 11 Ms. Lindsay said the carryover reconciliation process would occur later in the month. Councilmember Aldama asked if the carryover funds could go towards Vice Mayor Clark's request. Ms. Rios said because the project used G.O. Park Bonds, they could go to any G.O. Park project. Staff would review the request. Vice Mayor Clark asked if the parks improvements in the CIP covered all parks in Glendale or if it was a multi -year program. Jim Burke, Parks, Recreation, Facilities and Special Events Director, said it was the first phase for the first five years, but it did not include all Glendale parks. Staff planned to continue rolling in new projects each year. Ms. Lindsay provided an overview of the FY24-33 Public Safety CIP. Ms. Lindsay said there were three new projects in the CIP and provided the funding information. Ms. Lindsay provided an overview of the FY24-33 Public Safety CIP. Vice Mayor Clark asked for confirmation, whether new projects totaling approximately $4.5 million were added. Ms. Lindsay said that was correct. Vice Mayor Clark requested a separate list of all new projects with totals for the projects. Councilmember Aldama asked about the Phase 2 Court Renovation of $10 million in FY28 and if a study was conducted or if it was a placeholder. Ms. Woytenko said Phase 2 was a placeholder until Phase 1 was completed. Phase 1 was a high-level architectural programming study. An evaluation of the functionality would lead to any changes needed in Phase 2. Judge DiPiazza would be involved to help determine needs. Ms. Lindsay presented an overview of the FY24-33 Solid Waste CIP. There were no new projects within the Solid Waste program. Ms. Lindsay presented an overview of the FY24-33 Streets CIP. The Streets Program was out of G.O. Bond obligations and projects in the current CIP for FY24 and forward would need additional voter authorization. Councilmember Aldama was happy to see the Flashing Yellow Arrows Project was continuing with Phase 5. He asked if there would be additional phases. Mr. Abbas said Phase 5 was the last planned phase. It was an ongoing project and with other grant funds, more locations would be identified and completed. Councilmember Malnar inquired if the 67th Avenue and Greenway project in FY25 and FY26 included yellow light changes as well. Mr. Abbas said the capacity was to add a right -turn lane. Once the turn lane was completed, a holistic review could be undertaken. Councilmember Malnar said there were several intersections in his district due for an upgrade, City Council Meeting Minutes - March 7, 2023 Page 9 of 11 which were in the budget. He requested the incorporation of the yellow light into those projects. He said the citizens like the yellow light. Mr. Abbas agreed with the priority of flashing yellow arrows. The existing method of flashing yellow arrows required a complete rehabilitation of the intersection, which was very expensive. Staff was looking at installing flashing yellow arrows in-house without changing the whole intersection. Councilmember Turner clarified that the effort was not stopping but rather pausing, to look more comprehensively and develop a bigger program to pursue funding. Mr. Abbas said that was correct. Councilmember Tolmachoff asked when the G.O. authority ended. Ms. Rios said there was approximately $300,000 left, which was not enough to issue bonds for the projects. There was no authority to issue new bonds. Councilmember Tolmachoff said Ball Park Boulevard was still in the CIP. She thought it had been finished and asked if it was being expanded. Mr. Phelps said the last part of the project was the connectivity on the signalization. It was the last part of the main intersection. Councilmember Tolmachoff asked for confirmation there would be costs recovered from the developers as projects were built along Ball Park Boulevard. Mr. Phelps said that was correct. Councilmember Malnar asked if the right-of-way improvements were in the budget. Ms. Lindsay said that was correct. Councilmember Malnar noted many Councilmembers were interested in adding additional funding to the Right -of -Way Landscape Plan Project to expedite the improvements. He asked if it was in the CIP. Mr. Phelps said the project would have an ongoing cycle similar to the Pavement Management Plan. Staff could conduct an assessment on potential funding and bring the information back to Council. Ms. Lindsay provided an overview of the FY24-33 Transit CIP, the FY24-33 Water Services CIP, and the FY24-33 Wastewater CIP. There were no new projects in the programs. Ms. Lindsay provided an overview of the FY24-33 Water CIP. There were no new projects in the Water program. Councilmember Tolmachoff asked if the increase costs for the Water Valve Replacement Program was due to inflation or expansion of the project scope. Mr. Ron Serio, Water Services Director, said the increase was due to two projects being consolidated. Councilmember Aldama asked for the grand total carryover amount for all of the projects to be City Council Meeting Minutes - March 7, 2023 Page 10 of 11 closed out. Ms. Lindsay said the total for FY23-24 CIP of $146.9 million was carryover and $202.4 million was new funding. It included all funds. Councilmember Aldama said the carryovers would go to General Funds. Ms. Lindsay said that was correct. Councilmember Aldama requested the amount excluding Enterprise Funds. He asked when the reconciliation would be done. Ms. Lindsay said it would be done at the end of March or early April. The information was in the binder. The General Fund carryover was just over $14 million. Councilmember Aldama asked staff to advise when it was reconciled, the amount going back, and where it was going. ADJOURNMENT Mayor Weiers adjourned the meeting at 11:25 a.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 7th day of March, 2023. 1 further certify that the meeting was duly called and held and that a quorum was present. Dated this 16th day of March, 2023. J 'lie . Bower, MMC, City Clerk City Council Meeting Minutes - March 7, 2023 Page 11 of 11