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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 5/23/2023 City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 Glendale ARIZONA Meeting Minutes Tuesday, May 23, 2023 12:30 P.M. Workshop Meeting Council Chambers City Council Mayor Jerry Weiers Vice Mayor Joyce Clark Councilmember Jamie Aldama Councilmember lan 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 Ian Hugh Councilmember Ray Malnar Councilmember Lauren Tolmachoff Absent: Councilmember Jamie Aldama Councilmember Bart Turner Also Present: Kevin Phelps, City Manager Jim Gruber, Deputy City Attorney Julie K. Bower, City Clerk Councilmembers Aldama and Turner arrived after the roll was called. WORKSHOP SESSION 1. ENGINEERING PROCUREMENT PRACTICES REGARDING THE CAPITAL IMPROVEMENT PROGRAM (CIP) Presented by: Don Bessler, PWLF, Engineering Director John Murphey, Engineering Budget & CIP Administrator Ms. Bower read the item by title. Mr. Bessler presented information on the process for delivering the CIP and reviewed the different types of contracts that the City used to get work done. Vice Mayor Clark asked how the quality of work done was judged and determined that it was not up to City standards and the company would no longer be used. Mr. Bessler said that job order contracts (JOC) started as a qualifications-based procurement. Vendors were screened based on qualifications. The specific project Vice Mayor Clark was referring to was a low bid project not a JOC project. In recent years, the City had experienced more quality issues due to market conditions. Councilmember Aldama asked for an explanation of how JOCs involved administrative costs, which allowed the City to manage multiple projects at one time. Mr. Bessler said the JOC paid the general contractor to coordinate multiple vendors and in return the City received open book pricing. Councilmember Aldama asked if the JOC was over a certain dollar amount, were three bids required and was the contractor doing that for the City. Mr. Bessler said there were triggers that provided accountability. City Council Meeting Minutes- May 23, 2023 Page 2 of 7 Councilmember Turner asked if one contractor managed a project from design to implementation. He asked if the City reviewed the bids. Mr. Murphey said a design professional produced the plans and then the plan sets went out to bid. The contractor did the work, but the City reviewed the bids. Vice Mayor Clark asked why amendments to contracts for price increases for projects were accepted. Mr. Bessler said that it could happen with commodity purchases. The market could change over time. Typically, for work on projects, the price was already set. If there was a delay on the City's part, there could be a price increase. 2. COUNCIL ITEM OF SPECIAL INTEREST -VETERANS COMMUNITY PROJECT Presented by: Jean Moreno, Director, Community Services Ms. Bower read the item by title. Ms. Moreno presented the findings of the due diligence process and was seeking approval to move forward on the Veterans Community Project (VCP). She was seeking consensus for: •$3.8 million transfer to Transportation Sales Tax Fund • Negotiate $3 million intergovernmental agreement (IGA)with Maricopa County Human Services Department • Negotiate development agreement with Veterans Community Project •Transition the item to a project Vice Mayor Clark asked if there were structures on the land proposed for the site. Ms. Moreno said there were no structures,just debris that needed to be cleared prior to construction. Councilmember Tolmachoff asked about the $6.2 million and if the $3.8 million would come from the General Fund. Ms. Moreno said the $6.2 million would come from the state and county to support construction costs, capital and planning and development costs. There was enough money available in the General Fund to move $3.8 million to the Transportation Sales Tax Fund without touching the reserves. Councilmember Tolmachoff asked what the City's obligation would be. Ms. Moreno said the donated funding could not be used to repay the City. It had to be used for construction capital. The City's contribution would be the land valued at $3.8 million. The property had the necessary infrastructure. Councilmember Tolmachoff asked if other cities had used the same model of paying back another department for a land donation. Ms. Moreno was not aware of any examples. The land had to be used for transportation purposes. Councilmember Tolmachoff asked during the fundraising if enough money could be raised to City Council Meeting Minutes- May 23, 2023 Page 3 of 7 pay back the Transportation Sales Tax Fund. Mayor Weiers said whether the City paid back the fund or paid back the land, it was the same thing. The land was being paid off according to the bonds. Councilmember Tolmachoff asked how the City was getting the money back. Ms. Moreno said cities had donated land for other VCP projects. Due to the restrictions on the land, the City was required to pay back the Transportation Sales Tax Fund. It was likely that at some point in the Kansas City project, Kansas City had a cash outlay for acquisition of the land unless the land was gifted. Councilmember Turner said it would be beneficial to look at other possibilities besides taking money from the General Fund. He wanted to see the legislative restrictions on using the county and state money. Another option could be to have businesses donate funds. Mayor Weiers said the land had to be paid off regardless. He suggested a 30 to 50-year lease for the City to maintain ownership of the land. Councilmember Malnar asked if the Transportation Department had determined if there was a need in the future for the property. Jamsheed Mehta, Assistant City Manager, said the property was purchased as part of the Grand Avenue improvements. The need was simply to acquire driveways and the whole property had to be purchased. There was no specific purpose for the property. Councilmember Malnar said it was a win for everyone and that it was a very logical plan. It could set a precedent for the entire state. Councilmember Tolmachoff asked if a ground lease for the property was possible without having to pay the money back. Ms. Moreno said it was not possible. The Transportation Sales Tax Fund had to be paid back for the use of the land. A lease was still a possibility for the City to retain ownership and she would confer with the City Attorney's Office. Councilmember Turner understood that the money needed to be paid back. Other options should be explored to get the money before going straight to the General Fund. Council member Aldama asked what the total dollar amount was required by the City for the project. He asked if there was a first right of refusal for the property. Ms. Moreno said it was $3,844,763.00, which represented the recommended source of transfer to pay back the Transportation Sales Tax Fund. There would also be staff time associated with the contract management. The expectation was the VCP would fulfill its obligation or the land would revert back to the City. There were a variety of legal mechanisms that could be included in the contracts. Councilmember Aldama asked if any veteran would be helped regardless of the veteran's address. Ms. Moreno said the program would assist any veteran. There were no restrictions. The main focus would be to assist people locally, but no veteran would be turned away. City Council Meeting Minutes-May 23, 2023 Page 4 of 7 Mayor Weiers asked if leasing the land was a possibility. Mr. Phelps said staff would come back with options. Moving the money from the General Fund balance would not affect the minimum fund balance requirement of 25%. Other cities were looking at spending general funds to help with the homeless problem. Councilmember Tolmachoff asked if there was a transit component on or near the property and was there a way to include a transit component to help meet the transportation requirement for the property. Ms. Moreno said staff had explored options around not paying back the Transportation Sales Tax Fund and the answer was no. If the property was used for the project, regardless of a land lease, it had to be paid back. Staff would discuss land lease options with the City Attorney. Councilmember Hugh supported moving forward. Councilmember Malnar supported the project. Mayor Weiers said there was consensus to move forward with the project. 3. DOWNTOWN CAMPUS REINVESTMENT PROJECT UPDATE Presented by: Kevin R. Phelps, City Manager Ms. Bower read the item by title. Mr. Phelps provided an update on the Downtown Campus Reinvestment Project (DCRP). The Sine Building, the Adult Center, Glendale Regional Public Safety Training Center and the Airport had been completed. The Bead Museum was 40% complete and the Annex was 25% complete. Staff was waiting for fixtures to be assembled at the Media Center. Vice Mayor Clark asked what was going to be located on the 2nd and 3rd floors of the Media Center. Mr. Phelps said Mayor and Council would be located on the 2nd floor and the 3rd floor would be the City Manager's Office. Councilmember Aldama asked what the plan was for local businesses while City Hall was relocated for 2 years. Mr. Phelps said staff was not 100% sure on what the configuration would look like. The Economic Development and Public Affairs team was working on a marketing plan to minimize the impact. Council would be briefed before there was much impact to the downtown. Councilmember Aldama asked for a timeline on when City Hall would be vacated and when fencing would go up and construction would start. Mr. Phelps said that his best guess was staff would be out of City Hall by early July. It would be September or October when more intense redevelopment of the downtown campus would begin. Oakland Construction knew the City was looking for ways to minimize the impact on the downtown area. A plan was expected within the next few months. Councilmember Aldama said people did not know if the library would be closed or if there would be fencing around the park. He asked that as soon as Council was back from the July break, City Council Meeting Minutes -May 23, 2023 Page 5 of 7 there be a plan that could be shared with the public. Mr. Phelps said staff would come back with a workshop discussion. CITY MANAGER'S REPORT Mr. Phelps had represented the City on a panel sponsored by the Commercial Real Estate Development of Arizona and the focus was on becoming a tier 1 city and a sports entertainment district. It was a good turnout, and there were a lot of great questions. Mr. Phelps said Cushman and Wakefield had announced that Cohen Affiliates had purchased its first building at the Falcon Park 303 development for$81.7 million or$136/square foot. Mr. Phelps said the City Manager's Office had received an unsolicited offer on city-owned property and he would be bringing the offer forward to Council per its policy. CITY ATTORNEY'S REPORT No report COUNCIL ITEMS OF SPECIAL INTEREST None MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Ray Malnar, 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 2:13 p.m. for: • Discussion and or consultation, to consider its position, and to provide instruction/direction regarding the Glendale Municipal Court and discussion/consultation for legal advice with the City Attorney pursuant to A.R.S. §38-431.03(A)(1)(3) • 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 contracts at Camelback Ranch pursuant to A.R.S. §§ 38-431.03 (A)(3)(4) City Council Meeting Minutes-May 23, 2023 Page 6 of 7 • 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 Surprise's position in connection with contracts, agreements and/or development Agreements of the area in, near and surrounding Olive Avenue and Sarival Avenue that are the subject of negotiations pursuant to A.R.S. §§ 38-431.03 (A)(3)(4) • 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 99th Avenue and Northern Avenue pursuant to A.R.S. §§ 38-431.03 (A)(3)(4)(7) • 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 91st Avenue and Cardinals Way pursuant to A.R.S. §§ 38-431.03 (A)(3)(4) A motion was made by Councilmember Bart Turner, seconded by Councilmember Ian Hugh to adjourn the 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 Mayor Weiers adjourned the executive session at 3:26 p.m. ADJOURNMENT Mayor Weiers adjourned the meeting at 3:26 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 23rd day of May, 2023. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 2nd day of June, 2023. r77_,-----. K. Bower, MMC, City Clerk City Council Meeting Minutes- May 23, 2023 Page 7 of 7