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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 5/28/2024City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 Glendale A R I Z O N A Meeting Minutes Tuesday, May 28, 2024 12:30 P.M. Workshop Meeting Civic Center City Council Mayor Jerry Weiers Vice Mayor Ian Hugh Councilmember Leandro Baldenegro Councilmember Joyce Clark Councilmember Ray Malnar Councilmember Lauren TolmachofP 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 Leandro Baldenegro Councilmember Joyce Clark Councilmember Ray Malnar Councilmember Lauren Tolmachoff Absent: Councilmember Bart Turner Also Present: Kevin Phelps, City Manager Michael Bailey, City Attorney Julie K. Bower, City Clerk WORKSHOP SESSION 1. POTENTIAL TRANSPORTATION EXCISE TAX BOND DEFEASANCE Presented by: Levi D. Gibson, Director, Budget and Finance Vicki Rios, Assistant City Manager Kurt Freund, RBC Capital Markets LLC Ms. Bower read the item by title. Mr. Freund presented information on the following: . Financial plan overview *Transportation excise tax revenue obligations outstanding . Cash Defeasance . Disclaimer and disclosure of role Mayor Weiers asked if the defeasance would increase the City's bond rating. Mr. Freund said it would not make for a higher bond rating as it was already very high. Councilmember Tolmachoff asked what the rates were on the bond. Mr. Freund said the Series 2015 bonds were at 5% and that was what the City was saving by paying it off. If the City were to go out for new bonds today, the interest rate would be 3.25%. There was Council consensus to proceed. 2. ARTS AND CULTURE MASTER PLAN DISCUSSION Presented by: Jessi Pederson, Director, Economic Development Linda Flynn, Partner, Cultural Planning Group David Plettner-Saunders, Partner, Cultural Planning Group City Council Meeting Minutes - May 28, 2024 Page 2 of 11 Ms. Bower read the item by title. Ms. Flynn and Mr. Plettner-Saunders presented the following: . Planning process . Key Findings . Draft plan review: goals and strategies . Discussion Councilmember Tolmachoff asked about supplementing it with the General Fund. She asked if part of the conversation was that the Arts Fund was owed money from the General Fund. Ms. Pederson said it had been part of the ongoing discussion. It would be Council's decision to replenish the fund. Councilmember Tolmachoff asked if the legality of the requirement for art in private real estate development was part of the discussion. Ms. Pederson said other valley cities had included it in their plans. Ms. Flynn was not aware that it would be illegal in Arizona. There were other communities that had private development ordinances. An advantage of the private development ordinance was that there were many ways to approach it. Thresholds could be created, it was flexible, and it could pay into a fund for use on other projects. Mr. Plettner-Sauders said that Tempe and Scottsdale had had private art requirements for a long time. The discussion would include the community; the Planning Department and political voices to make sure that any requirement enacted was done sensitively and tailored to the specific circumstances in Glendale. Councilmember Tolmachoff wanted to know how many surveys were sent out and what the response rate was. Ms. Flynn said 477 responses were received and all reported they were Glendale residents except for 4 or 5 responses. Ms. Pederson said it was an online survey and was distributed in many ways via social media, so staff did not have an exact number of people who received it. Councilmember Tolmachoff said it was a low response rate compared to the amount of advertising for it. She expressed concern about using zip codes as many were for multiple cities. Councilmember Clark said the City carried approximately $1 million in the Arts Fund every year with barely any of it being spent. She asked the purpose of shifting the Arts staff salaries from the Arts Fund to the General Fund and what was the benefit. Ms. Pederson said the preference going forward was to have salaries come from the General Fund, so it did not take away from the Arts Fund. Councilmember Clark asked for a list of the arts organizations staff had spoken with. She said the goals were not specific or how the goals could be accomplished. There was also a lack of examples of what had been done in other cities. City Council Meeting Minutes - May 28, 2024 Page 3 of 11 Mayor Weiers asked for clarification regarding public money being spent on art at private businesses. Ms. Pederson said the City would not pay to put art on private property. The suggestion was to work with developers to integrate art into the project. Today's presentation was a summary of the arts master plan. The information sent previously to Council had included examples and more substance was provided. Councilmember Malnar asked if the Arts Fund was for capital projects. Ms. Pederson said it funded capital projects and the division. Councilmember Malnar asked what the anticipated account balance would be at the end of the year. Ms. Rios would get an estimate but said it was 1 % of the capital projects. There were some projects that were excluded, but it would be a significant amount due to the large projects underway. Councilmember Malnar wanted to see the budget before making any recommendation on the plan. He asked how much money was swept from the entire City when the funds were taken from the Arts Fund and what other funds were owed money. If the Arts Fund needed money, Council should just fund it. Ms. Rios said there were other transactions that were reclassified as transfers and those were still beinq paid back. The Arts Fund was not included. It had been a Council decision to transfer it from the Arts Fund. It was not done as a loan. It was up to Council if it got paid back. She believed there was also funds taken from the IT Fund and the Fleet Fund, but she would have to confirm it. Ms. Pederson said the plan was a draft and staff would take feedback and present a final plan at the June 25th meeting. It was a 10-year plan that would come with an implementation table and staff would bring the annual budget recommendations to accomplish the plan. Approving the master plan did not approve a budget allocation. Councilmember Malnar asked if there would be a plan for FY24/25 and what the plan would include and require. Ms. Pederson said because the plan had not been completed until after the FY 24/25 budget approval, there was still funding in the Arts Fund. Staff could accomplish next year's plan with the existing funds. In the next budget year, there would be a plan in place and what was required to complete it. Councilmember Tolmachoff asked if intercept surveys were done during Music at the Lot or other City events. Ms. Pederson said that was correct. Councilmember Tolmachoff asked if staff was asking Council to adopt the plan as is. Ms. Pederson said the actual document was the one that was sent to Council and if there was no specific feedback it would be put forth for adoption on June 25th. Ms. Flynn said the actual plan contained more information and included a table that showed City Council Meeting Minutes - May 28, 2024 Page 4 of 11 timelines for projects. Councilmember Tolmachoff said if the budget recommendations were as presented, she would not support the master plan. She was not ready to commit more money to it. Ms. Rios said staff would have a preliminary estimate in September or October and would not have an audited number until after that. The preliminary estimate would be close. Councilmember Tolmachoff said adopting a recommendation to increase from 1 % to 1.5% might not be necessary due to the large projects going on at the time. Mr. Plettner-Sauders said the recommendations did not ask Council to commit to increased funding rather it was for Council to consider it in future deliberations. Councilmember Tolmachoff said Council had that option now without adopting the master plan. Councilmember Clark said a City's identity was partially created by the arts and culture in the community. Scottsdale and Tempe had a minimum of 12 facilities dedicated to arts and culture and Glendale had one. It had never been a priority in Glendale. Councilmember Clark supported a 2% construction increase because it would create a robust budget for arts and culture. Council needed to look at the current budget and see what was being used in a positive way. She would support funding specific projects as they would be presented to Council next year. Mayor Weiers would not support a 2% increase but did support paying back the money. Councilmember Tolmachoff did not support requiring real estate development to fund arts. Councilmember Baldenegro said if paying salaries out of the General Fund helped alleviate any issues, he supported it. Ms. Pederson said the arts master plan was a guiding document that had options for discussion in the future. The document did not set policy. A 2% requirement of developers would require a Council -approved ordinance. She wanted to understand the consensus for the document coming back in June. Councilmember Tolmachoff said the document did not set the policy, but it set the expectations, and she did not support that. She supported having conversations with developers but did not support requiring it. Mayor Weiers said the difference between the words "shall" or "may", could be the difference in accepting the plan. Councilmember Malnar asked how Council would determine what to do without some idea of what the budget would be. Ms. Pederson said the plan had a variety of elements that could be funded, as well as some ideas for real commitments from the City. The master plan was the start, and the next step was to create the budget priorities and funding sources to accomplish it. Councilmember Malnar was in favor of moving forward with the master plan. He would like to soften the language on funding sources. He did not believe the current funding source was City Council Meeting Minutes - May 28, 2024 Page 5 of 11 sufficient and Council would need to discuss it. 3. SIERRA VERDE PARK IMPROVEMENTS Presented by: John Kennedy, Director, Parks and Recreation Heidi Barriga, Deputy Director, Parks and Recreation Ms. Barriga presented the following: . Staff Recommendations: . Public meeting . Council District Meeting . Other options Councilmember Tolmachoff said the original $1.5 million ARPA funds were allocated to a splash pad for the park. The community did not want to lose space in the park and the sand volleyball court in the park was rarely used. If there was going to be public outreach, she was open to discussing option 1 and option 2. The money should be spent on the park since it was allocated for the park. She did not like the idea of a restroom. The lights could be programmed to turn off when the park closed to help mitigate the noise. She would be happy to have a meeting specifically for discussion of option 1 or option 2. Councilmember Clark would like the money used as quickly as possible for Sierra Park. She supported Councilmember Tolmachoffs request to use it for the park. She would like to hear specifically from the public that there was no support for the splash pad and a preference for the pickleball court. Councilmember Tolmachoff said when discussing the splash pad with the public, it was important to provide information on the space required for a splash pad. Councilmember Baldenegro said eliminating the restrooms would create more problems. He understood the safety aspect, but it helped people stay longer and would make them want to show up. Ms. Rios said staff would make sure to include restrooms as an option during the community outreach. Councilmember Tolmachoff asked what the time frame was. Mr. Kennedy said staff felt confident it could get the project done by end of year to meet the ARPA guidelines. Ms. Rios said it only needed to be under contract by December 31st to meet the requirements. Councilmember Malnar would support option 1 or 2. He understood the policy to be that public restrooms were not placed in neighborhood parks. Mr. Kennedy did not know if there was a policy. Staff looked at the locations and types of amenities to determine facilities. Mr. Kennedy asked to confirm that Council wanted community outreach that would include options 1 and 2. Councilmember Tolmachoff asked if the outreach included restrooms for the park. It was a City Council Meeting Minutes - May 28, 2024 Page 6 of 11 public safety concern and a maintenance issue. Mayor Weiers said it should be up to the citizens. Mr. Kennedy said the City had a contracted vendor that provided that service to the parks. Ms. Rios said staff would not typically suggest adding a public restroom except now a pickleball court was being added. Staff needed direction on whether to offer restrooms or not. Mayor Weiers said pickleball was a game that took a few hours and people would have to stop and drive to the nearest restroom. He said it should be left up to citizens after providing the pros and cons. Councilmember Baldenegro agreed with leaving it up to the citizens. Councilmember Malnar said he did not have a problem making the public aware of restrooms and the pros and cons. Mayor Weiers said there was consensus to have the option with the citizens making the decision. 4. WATER RESOURCES UPDATE - WATER CONSERVATION REBATES AND WATER SUPPLIES Presented by: Ron Serio, P.E., Director, Water Services Joanne Toms, Environmental Programs Administrator Drew Swieczkowski, Water Resources Program Manager Ms. Bower read the item by title. Mr. Serio and Ms. Toms presented information on the following: . Presentation Overview *Landscape Rebate History . Water conservation grant fund . Current Water Conservation Rebate Program . Promotion of rebate program . FY24 Water conservation Rebate summary . Proposed new irrigation technology rebate for Non-residential customers . Next Step for rebate program Mayor Weiers said the rebate participation seemed like a low number. Ms. Toms said that was correct. There would be more promotion of the rebate program later in the year. Mayor Weiers asked if the $450,000 was not used, did it stay in the program. Ms. Toms said the $450,000 had to be used within the next two fiscal years. Councilmember Tolmachoff asked if a person had to be an existing water customer to qualify for the rebate, or was new construction incentivized to use the program. Ms. Toms said the focus of the water conservation rebate was to cycle out old products and City Council Meeting Minutes - May 28, 2024 Page 7 of 11 upgrade to more efficient products. The City could add incentives for the use of EPA water sense certified products in new construction. Councilmember Tolmachoff supported further discussions regarding the inclusion of new construction in the incentive program. Councilmember Malnar asked if artificial turf was added as a qualifying rebate for the landscape conversion. Ms. Toms said that was correct. Artificial grass was allowed under the Expanded Water Conservation Rebate but at a lower rebate amount. Councilmember Malnar was not in favor of builders using the rebate because the goal was to incentivize the cycling out of old products. He was in favor of a future discussion. Mr. Swieczkowski presented the Water Resources Update on the City's water supplies, long term plans and possible upcoming drought conditions. He reviewed the following topics: . 2023 Glendale Potable Water Use . Conditions on the Salt River Project and Colorado River Systems . Post 2026 Operations for the Colorado River . Future Water Resource Supplies . Next Steps Mayor Weiers asked if the water percentage of the Salt River Project (SRP) was at the original height of Roosevelt Dam or was it the additional raised value of the dam. Mr. Swieczkowski said it was the raised value of Roosevelt Dam, Councilmember Clark asked how quickly the ground water was depleting. She also asked if the recharge was off -setting the loss in ground water. Mr. Swieczkowski said Glendale ground water levels were stable as the surface water from SRP and Central Arizona Project (CAP) were mainly used. Councilmember Clark asked if the recharge balanced with the current usage. Mr. Swieczkowski said the usage had stabilized however there were new pumps due to the growth along the Loop 303. Some areas had a rise in water levels because of the recharge. Councilmember Tolmachoff said only individuals with access to SRP water would benefit from it. Mr. Swieczkowski said the New Conservation Space (NCS) water could be used through both SRP and CAP, using it anywhere in the City. Councilmember Clark asked if it was possible to pump water north. Mr. Serio said water could be pumped north as it was done on a test basis. He said a booster pump station was in the planning phase to provide a back-up system to supply water to the north part of the City. Councilmember Clark asked if people in California and Texas were drinking effluent water. City Council Meeting Minutes - May 28, 2024 Page 8 of 11 Mr. Swieczkowski said that was correct. Councilmember Clark asked why desalinization was not being explored as a future water source. Mr. Swieczkowski said the cost of the project, amount of energy and disposal seemed to have stalled further discussions. Councilmember Tolmachoff asked what the possible outcomes were between the Upper and Lower Basin Proposals. Mr. Serio said the Bureau of Reclamation would make the final decision based on the proposals, but the final outcome was unknown. Councilmember Tolmachoff asked if there was a timeline for the Bureau of Reclamation to make a final decision. Mr. Swieczkowski said a decision was expected in 2025. 5. DOWNTOWN CAMPUS REINVESTMENT PROJECT UPDATE Presented by: Kevin R. Phelps, City Manager Mr. Phelps provided an update on the Downtown Campus Reinvestment Project. The reconstruction phase would begin later in the summer. The construction documents had been submitted to the plan review team. The project was on schedule to receive building permits by mid -June. Mr. Phelps said the Velma Teague Library programing exercise would be brought back to Council at a future meeting. Mr. Phelps said the GMP3 which consisted of most of the "shell" of the building, was under review and would be brought back to Council for authorization at the June 25th voting meeting. CITY MANAGER'S REPORT Mr. Phelps said Fitch Ratings had affirmed the City's AA+ rating for the water and sewer revenue bonds that would be issued the week of June 10th. Mr. Phelps said there was a cash optimization plan that would save the City approximately $17.4 million on a future value basis, which was an 8% value savings on the City's bonds. Based on the favorable market conditions, the City would refinance $26 million of the $48 million of callable debt to capture the additional savings. CITY ATTORNEY'S REPORT None COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Tolmachoff requested discussion and information regarding deploying high speed fiber into the community. City Council Meeting Minutes - May 28, 2024 Page 9 of 11 MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Joyce Clark, seconded by Vice Mayor Ian Hugh to hold an executive session. AYE: Mayor Jerry Weiers Vice Mayor Ian Hugh Councilmember Leandro Baldenegro Councilmember Joyce Clark Councilmember Ray Malnar Councilmember Lauren Tolmachoff Other: Councilmember Bart Turner (ABSENT) Passed EXECUTIVE SESSION Council met in executive session at 3:21 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 a property at 5750 W. Glenn Drive 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 a property at Montebello Avenue and 91st 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 pending or contemplated litigation, or in settlement discussions conducted in order to avoid or resolve litigation re: Arizona Cardinals and AZSTA pursuant to A.R.S. §38-431.03 (A)(3)(4) . Discussion/consultation with the City Attorney to receive an update and legal advice regarding appeals of zoning administrator interpretations pursuant to A.R.S. §§ 38-431.03 (A)(3) . iscussion regarding appointments and matters relating to various boards, commissions and other bodies pursuant to A.R.S. § 38-431.03(A)(3)(4) A motion was made by Councilmember Lauren Tolmachoff, seconded by Vice Mayor Ian Hugh to adjourn the executive session. AYE: Mayor Jerry Weiers Vice Mayor Ian Hugh Councilmember Leandro Baldenegro Councilmember Joyce Clark Councilmember Ray Malnar Councilmember Lauren Tolmachoff Other: Councilmember Bart Turner (ABSENT) Passed City Council Meeting Minutes - May 28, 2024 Page 10 of 11 Mayor Weiers adjourned the executive session at 4:42 p.m. ADJOURNMENT Mayor Weiers adjourned the meeting at 4:42 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 May, 2024. 1 further certify that the meeting was duly called and held and that a quorum was present. Dated this 11th day of June, 2024. Vie. wer, MMC, City Clerk City Council Meeting Minutes - May 28, 2024 Page 11 of 11