CITY OF PEORIA, ARIZONA COUNCIL CHAMBER February 21, 2006 A Regular Meeting of the City Council of the City of Peoria, Arizona was convened at 8401 W. Monroe Street in open and public session at 7:00 p.m. Following a moment of silence, Councilmember Leone led the Pledge of Allegiance. Members Present: Mayor John Keegan; Vice Mayor Bob Barrett; Councilmembers Cathy Carlat, Patricia Dennis, Joan Evans, Vicki Hunt, and Carlo Leone Members Absent: None Other Municipal Officials Present: Terrence Ellis, City Manager; Susan Thorpe, Deputy City Manager; John Wenderski, Deputy City Manager; Neil Mann, Acting Deputy City Manager; Steve Kemp, City Attorney; Mary Jo Kief, City Clerk; Stephen Bontrager; Constance Copeland; David Leonardo; Grady Miller; Dave Moody; J.P. de la Montaigne; Brent Mattingly; Steve Prokopek; and David Nakagawara. Audience: Approximately 30 individuals were present. Note: The order in which items appear in the minutes is not necessarily the order in which they were discussed in the meeting. PRESENTATION CERTIFICATES OF APPOINTMENT AND RE-APPOINTMENT TO Mayor Keegan presented certificates of appointment to the following Boards and Commissions members: * John Gerard - Planning and Zoning Commission * Jane Wakefield - Youth Advisory Board * Jessica Hewitt - Youth Advisory Board * Jarod Derrick - Youth Advisory Board CONSENT AGENDA: All items listed with a “C” are considered to be routine or have been previously reviewed by the City Council, and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember so requests; in which event the item will be removed from the General Order of Business, and considered in its normal sequence on the Agenda. CONSENT – New Business: Mayor Keegan asked if any Councilmember wished to have an item removed from the Consent Agenda. Councilmembers Leone and Dennis requested that 11C and 6C be removed from the Consent Agenda, respectively. A motion was made by Councilmember Leone, seconded by Vice Mayor Barrett, to approve the Consent Agenda, with the exception of items 6C and 11C, as submitted. Upon vote, the motion carried unanimously. 1C Code Amendment, Ch. 2, Various Sections ORDINANCE NO. 06-04 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA AMENDING CHAPTER 2 OF THE PEORIA CITY CODE (1992) BY AMENDING EXISTING SECTION 2-61 AND THEN RENUMBERING SECTION 2-61 TO SECTION 2-59 PERTAINING TO CITY MANAGER APPOINTMENT ELIGIBILITY AND TERM AND AMENDING EXISTING 2-64 AND THEN RENUMBERING SECTION 2-64 TO SECTION 2-60 PERTAINING TO CITY MANAGER; ACTING CITY MANAGER AND RENUMBERING SECTION 2-70 TO SECTION 2-61 PERTAINING TO CITY MANAGER; TERMINATION, SUSPENSION AND ADMINISTRATIVE LEAVE AND ENACTING SECTION 2-62 PERTAINING TO CITY MANAGER; EVALUATION; CRITERIA; AMENDMENT AND THEN AMENDING EXISTING SECTION 2-67 AND THEN RENUMBERING EXISTING SECTION 2-67 TO SECTION 2-63 PERTAINING TO CITY MANAGER-CITY COUNCIL RELATIONS AND AMENDING EXISTING SECTION 2-69 AND THEN RENUMBERING EXISTING SECTION 2-69 TO SECTION 2-64 PERTAINING TO CITY MANAGER; ATTENDANCE AT MEETINGS OF BOARDS; COMMISSIONS, ETC. AND AMENDING EXISTING SECTION 2-66 AND THEN RENUMBERING EXISTING SECTION 2-66 TO SECTION 2-65 PERTAINING TO CITY MANAGER; POWERS AND DUTIES AND AMENDING EXISTING SECTION 2-62 AND THEN RENUMBERING EXISTING SECTION 2-62 TO SECTION 2-66 PERTAINING TO CITY MANAGER; DEPUTY CITY MANAGERS; DUTIES; APPOINTMENT, TERM AND AMENDING EXISTING SECTION 2-63 AND THEN RENUMBERING EXISTING SECTION 2-63 TO SECTION 2-67 PERTAINING TO CITY MANAGER; SPECIAL OFFICES; APPOINTMENTS AND ASSIGNMENTS; DIVISIONS AND RENUMBERING EXISTING SECTION 2-65 TO SECTION 2-68 PERTAINING TO CITY MANAGER; POSITION CLASSIFICATION PLAN AMENDING EXISTING SECTION 2-68 AND THEN RENUMBERING SECTION 2-68 AS AMENDED TO SECTION 2-69 PERTAINING TO CITY MANAGER; CITY ATTORNEY; COOPERATION AND AMENDING CHAPTER 2 OF THE PEORIA CITY CODE (1992) TO PROVIDE THAT SECTION 2-70 SHALL BE RESERVED AND PROVIDING FOR SEVERABILITY AND PROVIDING FOR AN EFFECTIVE DATE. Adopted ORD. 06-04 amending various provisions of Chapter 2 of the Peoria City Code (1992 Edition) and pertaining to the evaluation of the City Manager. 2C Rezoning, 87th Avenue and Peoria Avenue ORDINANCE NO. 06-05 AN ORDINANCE OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA ZONING PROPERTY FROM INTERMEDIATE COMMERCIAL (C-2) TO PLANNED AREA DEVELOPMENT (P.A.D.) ZONING DISTRICT; AMENDING THE ZONING MAP AND PROVIDING FOR AN EFFECTIVE DATE. Concurred with the Planning and Zoning Commission’s recommendation and adopted ORD. 06-05 rezoning a 7.6-acre parcel located at the southwest corner of 87th Avenue and Peoria Avenue from Intermediate Commercial (C-2) to Planned Area Development (PAD). (Z05-24) 3C Grant Acceptance, U. S. Department of Justice, Additional Equipment RESOLUTION NO. 06-27 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA, ACCEPT AN AWARD OF A SUPPLEMENTAL GRANT IN THE AMOUNT OF $21,529 FROM THE U.S. DEPARTMENT OF JUSTICE'S EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) TO ASSIST IN FUNDING SUPPLEMENTAL LAW ENFORCEMENT OPERATIONS. Adopted RES. 06-27 authorizing the acceptance of an award in the amount of $21,529 from the U. S. Department of Justice, Edward Byrne Memorial Justice Assistance Grant, for additional equipment (LCON01706); and Approved a budget amendment in the amount of $14,700 from the Proposed Grants Contingency Account to the JAG Grant Account Operational Supplies/Equipment Account and $6,829 from the Proposed Grants Contingency Account to the JAG Grant Account Building and Improvements Account. 4C Contract, Contractor’s West, Traffic Signal, 91st Avenue and Greenbrian Drive Awarded a contract in the amount of $207,250.89 to Contractor’s West for the construction of the traffic signal at 91st Avenue and Greenbrian Drive (LCON01806); Authorized the purchase and delivery of traffic signal equipment to Pivotal Group in the amount of $148,601 for the future construction of the traffic signal at Westwing Parkway and High Desert Drive; and Authorized a budget appropriation and transfer in the amount of $90,000 from the General Fund Contingency Account to the General Fund Capital Project Account and $148,601 from the Outside Sources Fund Contingency Account to the Outside Sources Capital Account. 5C Contract, Black & Veatch, Engineering Services, Areas West of the Agua Fria River Approved a contract in an amount not to exceed $49,670 with Black & Veatch for analysis and conceptual design of water and wastewater infrastructure for areas west of the Agua Fria River (LCON01906); and Approved a budget appropriation and transfer in the amount of $49,670 from the Water Contingency Fund to the Water Capital Fund. 6C Contract, A Dye Design, Inc., Master Plan, Design Documents, and Construction Oversight, Osuna Park Improvement Project This agenda item was heard at the end of the Consent Agenda to accommodate Councilmember Dennis’ request for contract clarification. 7C Budget Appropriation, Municipal Court, Judicial Assistant Approved a mid-year budget appropriation to fund an additional Judicial Assistant position in the amount of $17,552 for one-third of the fiscal year cost with an on-going cost in the amount of $49,489 and a one-time cost for contract labor in the amount of $20,000. 8C Budget Transfer, Water Resource Fee Reimbursement Authorized the use of reserves from the Water Resources Fund; and Authorized a budget transfer in the amount of $1,176,259 from the Water Fund Contingency Account to the Water Resources Development Impact Fee Repayment Account for reimbursement of water resource fees paid by Shea/Sunbelt per the Vistancia Development Agreement. 9C Budget Transfer, Solid Waste Equipment Approved the use of reserves from the Solid Waste Equipment Reserve Fund; and Authorized a budget transfer in the amount of $64,634 from the Solid Waste Equipment Reserve Contingency Account and $6,366 from the Wastewater Equipment Reserve Contingency Account to the Solid Waste Equipment Reserve Other Vehicles Account for the increased costs of replacement trucks for the Solid Waste Division. 10C Budget Transfer, Community Services Department, Automated Lighting System Authorized a budget carryover from Fiscal Year 2005 in the amount of $15,500; and Approved a budget transfer in the amount of $10,500 from General Fund Reserves to the Sports Program General Fund and $5,000 from General Fund Reserves to the Computer Software Account. 11C Council Policy on District Funds This agenda item was heard at the end of the Consent Agenda to accommodate Councilmember Leone’s request for additional discussion. 12C Quarterly Investment Report Accepted the Quarterly Investment Report for the period ending December 31, 2005. 13C Neighborhood Traffic Management Program, Additional Residential Traffic Control Area RESOLUTION NO. 06-28 A RESOLUTION OF THE MAYOR AND THE COUNCIL OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA AUTHORIZING THE ESTABLISHMENT OF A RESIDENTIAL TRAFFIC CONTROL AREA FOR THE LANDINGS/WEST SHORE NEIGHBORHOOD (AREA BOUNDED BY GREENWAY ROAD, THE WEST CITY BOUNDARY, THUNDERBIRD ROAD, 91ST AVENUE) Adopted RES. 06-28 establishing an additional residential traffic control area for the Neighborhood Traffic Management Program for Landings/West Shore, an area bounded by Greenway Road in the north, 91st Avenue in the east, Thunderbird Road in the south, and the City boundary in the west. 14C Deeds and Easements, Various Locations RESOLUTION NO. 06-29 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA ADOPTING A RESOLUTION FORMALLY ACCEPTING DEEDS AND EASEMENTS FOR PROPERTY RIGHTS CONVEYED TO THE CITY OF PEORIA. Adopted RES. 06-29 accepting deeds and easements for various real property interests acquired by the City and previously recorded by the Maricopa County Recorder’s Office. 15C Designate Roadways, Establish Rights-of-Way, Various Locations RESOLUTION NO. 06-30 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA ADOPTING A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF PUBLIC STREETS, TO BE OPENED AND MAINTAINED BY THE CITY. Adopted RES. 06-30 designating various real properties to be used as City roadways and authorized the establishment of public rights-of-way to be opened and maintained by the City as a public street. 16C Final Plat, Plaza Town Center, Thunderbird Road and Plaza del Rio Boulevard Approved the final plat for Plaza Town Center, located at the southeast corner of Thunderbird Road and Plaza del Rio Boulevard, subject to stipulations. (Project R050026) 17C Re-Plat, Lot 6, 81st Avenue Between Kirby Street and Varney Road Approved the re-plat of the west half of Lot 6 of a 2-lot subdivision for Mr. Jose Rivero, located on the east side of 81st Avenue between Kirby Street and Varney Road, subject to stipulations. (Project R050212) 18C Re-plat, Lot 38 Varney Tract, 80th Avenue and Kirby Street Approved the re-plat of Lot 38 Varney Tract for Mr. Rafael C. Rivero, a 3-lot subdivision located at the southeast corner of 80th Avenue and Kirby Street, subject to stipulations. (Project R050120) 6C Contract, A Dye Design, Inc., Master Plan, Design Documents, and Construction Oversight, Osuna Park Improvement Project Councilmember Dennis inquired about the location of the new memorial and if the landscaping for the memorial area was incorporated into another project. Mrs. Dennis requested that the contract be amended to include the landscaping if is not already addressed in another project. David Nakagawara, Community Development Interim Director, responded that the scope for Phase I of the Osuna Park Improvement Project was already defined. He stated that he could not confirm whether the landscaping was included within the scope of the project. Mr. Nakagawara also indicated that is department is amenable to Councilmember Dennis’ suggestion to amend the contract at a future point in time if the landscaping is not addressed in this or another project. Mayor Keegan clarified that the contract before the Council could be approved and that if the landscaping for the memorial was not addressed in any projects an amendment to the contract would be brought back before the Council. Motion was made by Councilmember Dennis and seconded by Councilmember Hunt to award a contract in the not-to-exceed amount of $88,869.81 to A Dye Design, Inc. for the preparation of a master plan, design documents and construction oversight for the Osuna Park Improvement Project, Phase I with the contingency that if the memorial landscaping is not included in another project that an amendment will be added to this contract. Upon vote, the motion carried unanimously. (LCON02006) 11C Council Policy on District Funds Councilmember Leone requested a presentation on the Council Policy on District Funds. Mayor Keegan indicated that since the Council Policy on District Funds is a Council Policy that the Council as a whole adopted and modified over time, the Council should make the presentation. Mayor Keegan indicated that this is an incorporation of the existing policy that was already adopted by the Council. Steve Kemp, City Attorney, reported that the existing policy was adopted in 1997 and that the action before the Council is to codify the policy, as well as any changes that Council agreed upon at various annual retreats where the subject was discussed and add those changes to the policy to bring it current. In response to Councilmember Leone’s question about non-eligible expenses, Mr. Kemp responded that at the last Council Study Session, it was the consensus of Council that promotional items for Councilmembers could reflect the City of Peoria but could not identify the Councilmember by name and district. One of the legal concerns is that the City is not permitted to use public resources to promote election of candidates or incumbents. The exception to this is for the Mayor, who is the chief elected official of the City. This position has some protocol items that reflect the interaction required with other cities and the Mayor’s role as it differentiates from the role of a Councilmember. Mr. Kemp explained that expenses related to special programs that benefit the City was also discussed at a Council retreat. The concern is that it is not appropriate to use public revenues for City employees to attend events when there is no legitimate purpose for the employee to attend. Mr. Kemp stated that there are many events where the City purchases tables and many events where Councilmembers may wish to use district funds to promote the event. It is appropriate to have City employees who have a legitimate City purpose attend the events. It is not appropriate to use public money to have City employees who have no legitimate business attend the events. In response to a question from Mayor Keegan, Mr. Kemp responded that there is nothing in the proposed Council policy that is not current City policy. Each request that is reviewed and approved by the City Attorney’s Office is in accordance with what has been discussed and agreed upon by City Council. The document will be a complete compilation and reflect all of the action taken by City Council at various retreats. Motion was made by Vice Mayor Barrett and seconded by Councilmember Carlat to adopt an update to the Council Policy on District Funds. Upon vote, the motion carried 6 to 1 with Councilmember Leone dissenting. REGULAR AGENDA NEW BUSINESS 19R PUBLIC HEARING – Off-Track Wagering License Renewal, Gallagher’s, 6750 W. Peoria Avenue Public Hearing: Mayor Keegan opened the Public Hearing and asked if any Councilmember or citizen wished to comment on the Off-Track Wagering License Renewal for Gallagher’s of Peoria located at 6750 W. Peoria Avenue. Applicant: Daniel Luciano, agent for American Greyhound Racing, Inc. OT#14187. Staff Report/Public Comment: Mary Jo Kief, City Clerk, reported that the property had been posted, all reviewing Departments recommended approval, all fees were paid, and there were no comments received in the City Clerk’s Office. There being no comments from those present and none received in the City Clerk’s Office, Mayor Keegan declared the Public Hearing closed. Council Action: Motion was made by Councilmember Dennis, seconded by Vice Mayor Barrett, to recommend approval to the Arizona Racing Commission of an Off-Track Wagering License Renewal for Gallagher’s of Peoria located at 6750 W. Peoria Avenue. Applicant: Daniel Luciano, agent for American Greyhound Racing, Inc. OT#14187. Upon vote, the motion carried unanimously. 20R PUBLIC HEARING – Maintenance Improvement District No. 1025, Bedford Village I Retention Basin, 84th Avenue and Shangri La Road Public Hearing: Mayor Keegan opened the Public Hearing and asked if any Councilmember or citizen wished to comment on the Maintenance Improvement District No. 1025 Bedford Village I Retention Basin located at 84th Avenue and Shangri La Road. Staff Report/Public Comment: Mr. David Moody, Engineering Director, reported on the request for establishing Maintenance Improvement District No. 1025, Bedford Village I. The basin is located in the vicinity of 84th Avenue and Shangri La Road. The subdivision was approved in the mid 1980’s, and the homeowner’s association, established over the years, was dissolved. Mr. Moody stated that staff has received many requests from adjacent property owners to maintain the drainage basin. Mr. Moody provided clarification of the streets and vicinity around the proposed retention basin as requested by Mayor Keegan. Mr. Moody stated that there are two requirements for the City to maintain the drainage basin with City funds. Those requirements include ownership of the property and the creation of a Maintenance Improvement District. The first public meeting on this issue was held on January 17, 2006. Today staff is requesting that a public hearing to be held to identify those property owners who may not want to participate in the Maintenance Improvement District. Mr. Moody reported that signs have been posted and advertising has been done in accordance with the law. He also noted that Councilmember Hunt wrote a letter to each of the known property owners explaining what the proposal was about and the appropriate appeal process. Mr. Moody concluded his presentation by requesting a public hearing so that the names of any property owners who are against this issue could be gathered. Discussion ensued between Mr. Moody and Councilmember Hunt clarifying the fact that tonight is the closing date for accepting protests. Mr. Joseph Collins, a Bedford Village and City of Peoria resident, requested clarification on the expenses on this project. Mr. Kenji Seta, a Bedford Village and City of Peoria resident, requested clarification on the location of the retention basin. He indicated that it was closer to 80th Avenue not 84th Avenue. Mr. Seta also asked whether there was a telephone number at which protests could still be accepted tonight. Mayor Keegan responded that the project location was at approximately 82nd Avenue and that Mr. Seta should give his contact information to Mr. Moody to lodge a protest against this issue. Mr. Glen Frane, a Bedford Village and City of Peoria resident, inquired about where the water comes from that goes into the retention area. He indicated that it appears that it is designed for more than just the Bedford Village water to run into it. David Moody, Engineering Director, stated that there is a $240 fee for the first year and then a $45 fee each year thereafter. The first year start up fee includes the required condemnation of the property and the costs associated with clean up, vegetation and improvements. Mr. Moody also stated that the retention basin was built specifically for Bedford Village I. There may be water from other contributing sources, but since it was created for Bedford Village I, the City can only include this area. There being no additional comments from those present and none received in the City Clerk’s Office, Mayor Keegan declared the Public Hearing closed. Council Action: No Council action necessary. 21R PUBLIC HEARING – Maintenance Improvement District No. 1044, Bedford Village II Retention Basin, 83rd Avenue and Shangri La Road PUBLIC HEARING: Mayor Keegan opened the Public Hearing and asked if any Councilmember or citizen wished to comment on the Maintenance Improvement District No. 1044, Bedford Village II Retention Basin located at 83rd Avenue and Shangri La Road. Staff Report/Public Comment: Mr. David Moody, Engineering Director, gave the staff report and explained that the hearing is similar to the Bedford Village I item previously addressed. If the City creates a Maintenance Improvement District, condemnation is required to obtain a clear title and spend public funds. On January 17, 2006 Mayor and City Council adopted the resolution of intention. Tonight’s meeting is the culmination of the public hearing. The streets were posted and the hearing was advertised in accordance with the law. This is the final meeting at which residents can protest. Mr. Jeff Collins, Bedford Village and City of Peoria resident, inquired whether the fees would be included in the water and sanitation bills. Mayor Keegan reported that it would be collected through the property tax. Mr. Collins again asked whether water from other areas is going into these basins. Mr. Moody indicated that was correct. Mr. Roy Heck, Bedford Village II and City of Peoria resident, requested clarification on the Maintenance Improvement fees and how the City arrived at those amounts. Mayor Keegan indicated the estimated costs were divided by the number of residents in the area. If it comes in under the amount budgeted, the fees would be adjusted the following year. There being no additional comments from those present and none received in the City Clerk’s Office, Mayor Keegan declared the Public Hearing closed. Council Action: No Council action necessary. 22R PUBLIC HEARING – Reclaimed Water Rates Public Hearing: Mayor Keegan opened the Public Hearing and asked if any Councilmember or citizen wished to comment on proposed changes to reclaimed water rates. Staff Report/Public Comment: Mr. Brent Mattingly, Finance Director, reported that at the Council meeting on February 7, 2006 Larry Dobrosky, Revenue Manager, gave an overview of the rate study for reclaimed water rates. In the past the only reclaimed water user was the Vistancia developer who used reclaimed water from the Jomax Reclamation Facility. As the area has developed, there are additional potential reclaimed water users including golf courses, homeowner associations and, in the future, some schools may become users. As the area continues to develop, it is anticipated that the Jomax Reclamation Facility will produce more and more reclaimed water. Mr. Mattingly indicated that the outcome of the rate study and report is to recommend a rate of $1.05 per 1,000 gallons. Tonight is the public hearing on the matter for consideration of the new rate. He stated that if Council chooses to adopt the new rate, staff recommends an effective date of April 1, 2006. In response to Councilmember Carlat, Mr. Mattingly replied that there have been no comments or questions received since the issue was addressed at the February 7, 2006 Council meeting. There being no comments from those present and none received in the City Clerk’s Office, Mayor Keegan declared the Public Hearing closed. Council Action: RESOLUTION NO. 06-31 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA, ESTABLISHING RATES IMPOSED FOR RECLAIMED WATER USE; RECLAIMED WATER RATE COMPONENTS; SERVICE CHARGES AND FEES FOR USE OF THE MUNICIPAL RECLAIMED WATER UTILITY SYSTEM AND ADOPTING A SCHEDULE OF CHARGES FOR THE USE OF THE MUNICIPAL RECLAIMED WATER SYSTEM AND ALL SUCH ADJUSTMENTS TO BECOME EFFECTIVE AS PROVIDED HEREIN AND PROVIDING FOR AN EFFECTIVE DATE. Motion made by Councilmember Carlat, seconded by Vice Mayor Barrett, to adopt RES. 06-31 adjusting reclaimed water rates and establishing the new rates, effective April 1, 2006. Upon vote, the motion carried unanimously. 23R Confirmation of City Manager Appointment - Community Development Director Mr. Terry Ellis, City Manager, gave a brief overview on the national recruitment process undertaken for the Community Development Director position recently vacated by Debra Stark who went to the City of Phoenix. Mr. Ellis gave a brief summary of Mr. Van Nimwegen’s professional credentials and recommended his confirmation as Community Development Director. Motion made by Councilmember Hunt, seconded by Councilmember Evans, to confirm the City Manager’s appointment of Glen Van Nimwegen as the Community Development Director effective April 3, 2006. Upon vote, the motion passed unanimously. UNFINISHED BUSINESS 24R Contract Amendment, DJN Eagle Mountain, LLC, (Glimcher Ventures Southwest), Parke West, Loop 101 and Northern Avenue (Item 18R, February 7, 2006) Steve Prokopek, Economic Development Director, stated that proposed amendment is to original development agreement approved by Council on July 5, 2005. The amendment would create two improvement districts and would allow for an increase in the sale tax reimbursement cap by up to $850,000 in the event frontage road costs increase. Mr. Prokopek gave a recap of the project overview. This information included location, acreage, proposed development projects, site plans and conceptual schematics for the site. He stated that the original agreement included one improvement district to construct the public infrastructure including Northern Avenue, 99th Avenue, the frontage road, 95th/97th Avenues and other qualified spine improvements. The infrastructure costs were projected at $5,192,000. Mr. Prokopek indicated that the amendment would split out the Frontage Road from this improvement district and the other infrastructure projects. Mr. Prokopek stated that the original agreement included a sales tax reimbursement capped at $9 million. Included in this agreement were the district improvements including: a parking structure, additional spine improvements, and impact and permitting fees for the retail and office space. Vice Mayor Barrett inquired about the time limit on the sales tax reimbursement cap. Mr. Prokopek indicated that the reimbursement terms are 50 percent of 1 percent of the General Retail and 2 percent of the Restaurant/Bar taxes for a period of ten years. Construction was to commence no later than March 2006 with 150,000 square feet of retail to be built prior to any sales tax reimbursements. A total of 350,000 square feet of retail space must be built by October 2008. Mr. Prokopek discussed the main public infrastructure improvements at 99th Avenue and Northern Avenue and along the frontage road. He also indicated where the spine improvements and the parking structure would be located. The frontage road would connect from Olive Avenue to Northern Avenue. Mr. Prokopek discussed creating two separate improvement districts. Currently, there is only one improvement district and this has caused problems for the project because of the timing of the Arizona Department of Transportation frontage road project completion. According to the original agreement, the sales tax reimbursements and the improvement district were tied to the completion of the frontage road. Mr. Prokopek indicated that it could be a few years before sales tax reimbursements begin and the Industrial Development Authority funding would be available. Mr. Prokopek explained that the amendment would create two improvement districts; one for the frontage road with a cost of $4 million and the other for the primary district with a cost of $4.3 million. Mr. Prokopek clarified that Arizona Department of Transportation construction of the frontage road might not be scheduled at the same time as the retail development. Thus, the Improvement District will build the frontage road and give it to the Arizona Department of Transportation. The Improvement District payments will be made by the property owners: Glimcher Ventures Southwest, and office, residential and hotel owners. General discussion ensued about the direction and number of lanes for the frontage road. Mr. Prokopek stated that the frontage road timing is not a critical issue for the retail shopping. It will enhance the larger multi-mixed use development and ease the traffic associated with the office space and hotel. The frontage road may also enhance the project on Olive Avenue and State Route 101. Councilmember Dennis inquired about whether the sales tax portion of the agreement will affect future capital improvement projects. Mr. Wenderski replied that the sales tax forecast included the offsets and reimbursements for this project. Mr. Prokopek indicated that the agreement would allow for a cap increase of $850,000 for those frontage road costs above and beyond the original estimate of $2.7 million. The timeframe of the agreement would not be extended and thus anything that is generated above the $9 million would enhance the original projections to the City. Mr. Prokopek capped his presentation by stating that the project is expected to generate over $21 million in sales tax revenues to the City over a ten year period and $50 million in twenty years. This includes the 1 percent, 2 percent and ½ cent sales tax. The project will create an estimated 1,200 jobs, and bring a class A regional attraction to the City of Peoria. Motion made by Vice Mayor Barrett, seconded by Councilmember Leone, to authorize the City Manager to execute an amendment to the development agreement with DJN Eagle Mountain LLC (Glimcher Ventures Southwest), an Arizona Limited Liability Company for the Parke West project located at the Loop 101 and Northern Avenue. (LCON07805A) Upon vote, the motion carried unanimously. CALL TO THE PUBLIC: (NON-AGENDA ITEMS) There were no further comments from anyone present. Reports from the City Manager: 1. Competitive Bond Sale Results for Municipal Development Authority Bonds (Series 2006) Terry Ellis, City Manager, asked the Finance Director to give an update on the recent bond sale that was held to fund a portion of the Community Theater project. Mr. Brent Mattingly, Finance Director, reported that the Municipal Development Authority (MDA) Revenue Bond Sale occurred this morning. He indicated that the MDA Board was assisted by Tom Hawking, the Financial Advisor, and Michael Fusco, the City’s Bond Counsel. Mr. Mattingly introduced Debbie Card, Treasury Manager, who gave a brief presentation on the bond sale. Mrs. Card reported that the electronic bid process that was used allowed Peoria to gain access to the national market and allows electronic access to the City’s bond documents. She indicated that the bond rating for the MDA issues was upgraded by Standard & Poor’s from AA- to AA. The other bond rating agencies, Moody’s and Fitch, reaffirmed their ratings of A1 and AA, respectively. Mrs. Card indicated that five bids were received with a 19 point basis spread between the bids with no insurance, which reflects how competitive the City of Peoria is on the national market. The bonds are scheduled to close on March 9, 2006 at which time the City will receive the bond proceeds. No action is required tonight, as Council delegated financial and legal authority on matters pertaining to the bond sale to the Finance Director. In response to Mayor Keegan, Mrs. Card responded that the higher the bond rating the lower cost over the term of the financing. This bond rating makes it more attractive in the market. 2. Downtown Irrigation District Status Report Terry Ellis, City Manager, reported that the City has been engaged in the dissolution, abandonment or transfer of the downtown irrigation district for some months. He requested that Mr. Bill Mattingly, Utilities Deputy Director, and Mr. Kemp, City Attorney, to give an update report on this issue. Mr. Mattingly outlined the location of the irrigation district in the downtown area between Washington and Monroe streets and 85th and Grand Avenues. He recapped action that has already taken place. On September 19, 2005, City Council authorized the grant program for the downtown irrigation system to enable citizens to convert from a public system to an alternative system. The goals of the grant included: maintenance of the Old Town vitality, investment in the downtown, and to keep the heart of the City beautiful. Mr. Mattingly reported that the City authorized $180,000 worth of grants at $3,000 per lot. To date a total of 38 grants have been approved (with two pending) and $175,000 has been paid out. He stated that when Council approved the grant program it was with the anticipation that the City would get out of the irrigation business in one of two ways; either abandon the system or convey it to a qualified party. Mr. Matting indicated that the deadline for either abandonment or transfer was set for November 1, 2005. Mr. Mattingly reported that the Peoria Water User’s Association filed with the Corporation Commission on November 2, 2005 (a day after the deadline). In December 2005, City Council authorized an extension to the deadline to March 1, 2006. The City has been working with the group to understand and assess the system. It is staff’s expectation at this time that the Peoria Water User’s Association is preparing to take the system. Vice Mayor Barrett inquired about difference between the grant monies paid out and the number of grants given. Mr. Mattingly responded that some people had multiple lots and were therefore eligible for multiple grants. Vice Mayor Barrett clarified his understanding that a lot is not necessarily a grant. Steve Kemp, City Attorney, reported that the asset purchase agreement with the Peoria Water User’s Association was prepared and reviewed by staff, as well as the proposed form of operating agreement and a bill of sale. These documents were mailed to the Association for their review and comment. By structure of the transaction and asset purchase agreement, the City will agree to convey the system to the not-for-profit Arizona Corporation by contract. Mr. Kemp indicated that once the documents were executed, the City would close the transaction by assigning easements for the system in the public roadway. The corporation would enter into an operating agreement until such time as a franchise agreement can be placed on the ballot. He stated that the operating agreement would provide that the Corporation would be responsible for the maintenance of the system. Mr. Kemp stated further that the City is selling the system as is and is making no financial commitments for any further liability. In response to questions from Vice Mayor Barrett, Mr. Kemp responded that the Corporation has sold memberships to individuals. By virtue of the collection of a membership fee to deliver water, the Corporation committed to deliver water. If the Corporation failed to deliver water the Corporation would be subject to liability from their members. The City, however, is establishing no requirements that they operate the system or that they stay in business. In response to questions from Council, Mr. Kemp responded that a contractual agreement is the governing document until the franchise agreement can be submitted to the voters. Franchise agreements usually have between a ten and fifteen year term. This instance was unusual because other irrigation districts within the city are political subdivisions, not a private water company. Mr. Kemp stated that the City would refer citizens who have problems with the irrigation system to the Peoria Water User’s Association. He also stated that the City would oversee any projects that impact the City’s infrastructure in the same manner as it would with other utilities. The work would have to be completed by qualified, licensed, bonded contractors. Reports from City Council: Councilmember Hunt thanked the Peoria Rotary Club, the Peoria Rotary Club North and the Centennial High School Interact Club for their assistance in painting the downtown Women’s Club. She also invited everyone to attend the African American History Celebration this Saturday at the City Hall Amphitheater. Councilmember Leone indicated that he attended several recent benefit events for Officer Weigt. Councilmember Leone also attended the dedication and grand opening of the John M. Morris Post 62 American Legion on February 12, 2006. Councilmember Carlat reported on the opening of the Westwing Elementary School and traffic restrictions in the area. She indicated that the Terramar neighborhood park is scheduled for completion by the end of October. Neighbors can join a construction distribution list to get updates on the project by contacting her via e-mail at peoriaaz.gov. Councilmember Evans reminded everyone that baseball season is here and that spring training is going on at the Peoria Sport Complex. She also encouraged Peoria’s younger citizens to volunteer for the Peoria Youth advisory Board. Councilmember Dennis wished Mayor Keegan a happy birthday. She also acknowledged the services of the Paternal Order of the Police at the dinner benefiting Officer Weigt. She thanked them for doing a wonderful job. Reports from the Mayor: Mayor Keegan addressed “strike everything” amendments that are currently before the Legislature. Senate SCR 1019 and House HCR 2031 propose to change the State Constitution with respect to restricting the zoning powers of local governments, specifically cities. Mayor Keegan indicated that it would give the property owners cause to seek recourse against the City. Mayor Keegan explained that language in the Bills would strip away any protection that has been developed around the military bases in Arizona. Mayor Keegan indicated that if these Bills pass, it would signal the end of all military bases in the State or Arizona. The members of the State Legislature that represent the City of Peoria are from Districts 4 and 9. Mayor Keegan urged citizens to contact legislators if this issue is of importance to you. ADJOURNMENT: Being no further business to come before the Council, the meeting was duly adjourned at 8:23 p.m. ______________________________________ John C. Keegan, Mayor ATTEST: ______________________________________ Mary Jo Kief, City Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Meeting of the City Council of Peoria, Arizona held on the 21st day of February, 2006. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 4th day of April, 2006. (Seal) ______________________________________________ Mary Jo Kief, City Clerk