CITY COUNCIL SPECIAL MEETING NOTICE & AGENDA July 11, 2006 A Special Meeting of the City Council of the City of Peoria, Arizona was convened at 8401 W. Monroe Street in open public session at 7:05 p.m. Following a moment of silence, Councilmember Dennis led the Pledge of Allegiance. Members Present: Mayor John Keegan; Councilmembers Pat Dennis; Joan Evans; Pat Hickson; Cathy Carlat; and Carlo Leone. Members Absent: Vice Mayor Vicki Hunt Audience: Approximately 15 Other Municipal Officials Present: Terrence Ellis, City Manager; Susan Thorpe, Deputy District Manager; Steve Kemp, City Attorney; Carl Swenson Deputy City Manager; Mary Jo Kief, City Clerk; John Wenderski, City Chief Financial Officer; Constance Copeland, Assistant City Clerk; Karen Ashley, Stephen Bontrager, Grady Miller, Steve Prokopek, Glen Van Nimwegen, Bob McKibben, Dave Moody, John Schell, Jeff Tyne, Cheryl Boswell and Shawn Kreuzwiesner. REGULAR AGENDA NEW BUSINESS 1R PUBLIC HEARING – Liquor Licenses, Various Locations PUBLIC HEARING: Mayor Keegan opened the Public Hearing to approve various liquor licenses for the following: a) A new Restaurant Liquor License (Series 12) for Vito & Nicks II Restaurant/Pizzeria, located at 8378 W. Thunderbird Road #B101. Applicant: Steven Dessauer. LL#10006655; b) A Person Transfer/Location Transfer for an On-Sale Wine and Beer Liquor License (Series 7) for Cibola Vista Resort & Spa, located at 27501 N. Lake Pleasant Road. Applicant: Richard M. Kinert. LL#10003134; c) A new Wine & Beer License (Series 10) for Albertsons Express #991 located at 8268 W. Deer Valley Road and Albertsons Express #998 located at 7509 W. Cactus Road. Applicant: Glenn Edmondson. LL#10006697 and LL#10006656; and d) A Person Transfer for an Off-Sale All Liquor License (Series 9) for Albertsons #971, located at 8950 W. Bell Road, Albertsons #998 located at 7575 W. Cactus Road and Albertsons #991 located at 8240 W. Deer Valley Road. Applicant: Glenn Edmondson. LL#10006698, LL#10006699 and LL#10006657. 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 Carlat, seconded by Councilmember Hickson, to approve: a) A new Restaurant Liquor License (Series 12) for Vito & Nicks II Restaurant/Pizzeria, located at 8378 W. Thunderbird Road #B101. Applicant: Steven Dessauer. LL#10006655; b) A Person Transfer/Location Transfer for an On-Sale Wine and Beer Liquor License (Series 7) for Cibola Vista Resort & Spa, located at 27501 N. Lake Pleasant Road. Applicant: Richard M. Kinert. LL#10003134; c) A new Wine & Beer License (Series 10) for Albertsons Express #991 located at 8268 W. Deer Valley Road and Albertsons Express #998 located at 7509 W. Cactus Road. Applicant: Glenn Edmondson. LL#10006697 and LL#10006656; and d) A Person Transfer for an Off-Sale All Liquor License (Series 9) for Albertsons #971, located at 8950 W. Bell Road, Albertsons #998 located at 7575 W. Cactus Road and Albertsons #991 located at 8240 W. Deer Valley Road. Applicant: Glenn Edmondson. LL#10006698, LL#10006699 and LL#10006657. Upon vote, the motion carried unanimously. 2R Code Amendment, Ch. 2 and Ch. 9, Fire Department Fees ORDINANCE NO. 06-23 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA AMENDING CHAPTER 2 OF THE PEORIA CITY CODE (1992) BY AMENDING SECTION 2-215, TABLE 2-215, FIRE DEPARTMENT; FEES REQUIRED; AMENDING SECTION 9-33 INTERNATIONAL FIRE CODE, 2003 EDITION, LOCAL AMENDMENTS; PROVIDING FOR SEPARABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. Karen Daines, Fire Administrator Services Manager, presented an overview of fees and inspections. She emphasized that the fees collected are supporting 100 percent of the existing occupancy inspection program. Ms. Daines reported that based on growth projections in the business sector, additional revenue is projected for 2007. The Fire Department is proposing to rebate that revenue back to businesses, restructuring and lowering the fees. The incremental flat rate fee for a business up to 1,249 square feet would be $50. There will be no additional charge for the first re-inspection. The third inspection will be charged at the initial rate. After the third inspection, a citation will be issued to Peoria City Court. Ms. Daines also explained new clarifying language regarding who is responsible for paying fees. In response to questions from Mayor Keegan and Council, Ms. Daines explained how the Fire Department educates business owners and also works with businesses that show progress in addressing their violations. Ms. Daines explained that the Peoria Fire Marshall held three business owners’ summits to discuss the proposed changes. The feedback was positive. Motion was made by Councilmember Hickson, seconded by Councilmember Evans, to adopt ORD. 06-23 amending Chapters 2 and 9 of the Peoria City Code (1992 Edition), pertaining to fees charged by the Fire Department for annual fire inspections of commercial occupancies and to clarify code language. 3R Proposed Relocation Grant, Peoria Chamber of Commerce Terry Ellis, City Manager, reported that staff recommended that the Council approve an increase in the annual Half-Cent Sales Tax Funds general support to the Chamber of Commerce for $25,000 per year to help offset the extra costs incurred in moving to commercial office space. He commented that the City has provided office space for the Chamber for many years. Carolyn Grose, President of the Peoria Chamber of Commerce, expressed appreciation for the support the City of Peoria has given to the Peoria Chamber of Commerce. Robert Ware, Peoria Chamber of Commerce, reported that the new office space will be located at 83rd Avenue and Thunderbird Road. He explained the decision to move to the new free standing location. Discussion ensued regarding the advantage of having the Chamber in the downtown area. Mr. Ware explained that no buildings were readily available. Mr. Ellis stated that the funding would not be dependent on a specific location. Motion was made by Councilmember Carlat, seconded by Councilmember Hickson, to: Authorize a one-time relocation grant to the Peoria Chamber of Commerce in the amount of $50,000; Authorize the use of General Fund Reserves and approve a budget amendment in the amount of $50,000 from the City Council Contingency Account to the Non-Departmental City Partnerships Outside Programs Account; Approve an increase in the annual Half-Cent Sales Tax Fund general support to the Chamber of Commerce in the amount of $25,000 per year to offset extra costs incurred in moving to commercial office space; and Authorize a budget amendment in the amount of $25,000 from the Half-Cent Sales Tax Contingency Account to the Half-Cent Sales Tax Fund Participation in Outside Programs Account. Upon vote, the motion carried unanimously. 4R Contract Amendment, Sletten Construction, Osuna Park Renovations Grady Miller, Communications and Public Affairs Director, presented an overview of the plans for the Osuna Park Renovations. He reported that in planning the Peoria Center of the Performing Arts and the Osuna Park renovations capital projects, the City identified the need to close 83rd Drive to thru traffic to create a cul-de-sac and plaza space between the theater, park and planned retail development. Mr. Miller advised that sixteen parking spaces were planned for the area next to the theater. Discussion ensued regarding handicapped parking spaces, landscape plans, and a shared space for the park and theater. Mr. Miller advised that the City would work with the Developer to add features to the plans. Motion was made by Councilmember Dennis, seconded by Councilmember Hickson, to approve Contract Amendment No. 6 in an amount not to exceed $390,612 and a project contingency in an amount up to $9,388 with Sletten Construction for Phase One of the Osuna Park renovations project. (LCON03205F) Upon vote, the motion carried unanimously. 5R Contract, Various Governmental Agencies, Road Improvements, Happy Valley Road David Moody, P.E. Engineering Director, reported that as part of the environmental review for the Clean Water Act Section 404 Permit, the U.S. Army Corps of Engineers has requested that a Memorandum of Agreement be executed. The agreement is required due to the possible impacts on two National Register of Historic Places, eligible archaeological sites, the Sunrise Relief Mine and prehistoric canals. Mr. Moody explained that the memorandum of understanding would set up procedures if archaeological discoveries are identified. Discussion ensued regarding the financial impact of these concerns to project costs. Mr. Moody advised that some funding was identified in the Capital Improvement Projects budget, but there may not be enough money set aside. Motion was made by Councilmember Evans, seconded by Councilmember Carlat, to approve the final Memorandum of Agreement with various governmental agencies and several Indian Tribes/Communities for roadway improvements for Happy Valley Road (Lake Pleasant Road to Terramar Boulevard). (LCON05405A) 6R Contract Amendment, MAGDAWG, LLC/dba Chili Davis Premier Baseball, 77th Avenue and Paradise Lane Steve Prokopek, Economic Development Director, reported that City staff has offered to maintain the lease with MAGDAWG under the condition that they commence monthly lease payments and show continued effort to complete development of the project. Construction is scheduled to commence September 2006. The three acre, 27,800 square foot facility will include batting cages, pitching tunnels, weight room, and a Starbucks. The project will have access to the Sports Complex for baseball instruction. Mr. Prokopek reported that the developer has until October 31, 2006 to start construction. In response to questions regarding the current lease with the developer being in default, Mr. Prokopek explained the value of the facility as a family venue with good entertainment value for our citizens. He noted that the developer has made a good faith payment on the rent and the rent is a fair rate for the land on this site. Discussion ensued regarding the location, parking, and possible increased seating for the ballpark in the future. Motion was made by Councilmember Carlat, seconded by Councilmember Evans, to authorize the City Manager to execute an amendment to the lease agreement with MAGDAWG, LLC dba Chili Davis Premier Baseball for the lease of approximately three acres of real property owned by the City of Peoria located in the vicinity of 77th Avenue and Paradise Lane. (LCON01103F) Upon vote, the motion carried unanimously. 7R Contract Amendment, Zenon Environmental Corporation, Butler Drive Water Reclamation Facility Shawn Kreuzwiesner, Utilities Engineering Manager, explained the request for proposal process. He recapped the contract amendment with Zenon Environmental Corporation for supplying the membrane bioreactor equipment for the Butler Drive Water Reclamation Facility. Mr. Kreuzwiesner explained the use and features of a membrane bioreactor. Discussion ensued regarding the life span of fibers, the costs, and the warranty. In response to questions from Council, Stephen Bontrager, Utilities Director, explained that Zenon has been in business since the 1980’s. Terry Ellis, City Manager, advised that Southern California uses this technology. Mr. Kreuzwiener reported that the project is slated to be complete by June 2008. Motion was made by Councilmember Dennis, seconded by Councilmember Carlat, to approve Contract Amendment No. 1 in an amount not to exceed $10,280,291 for the membrane bioreactor equipment for the Butler Drive Water Reclamation Facility. (Project UT00031) (LCON08805A) CALL TO THE PUBLIC: (NON-AGENDA ITEMS) Reports from the City Manager: 1. Report on the State Legislative Session John Schell, Legislative Division, provided a brief report on the State Legislative Session including the immigration proposal, state income tax reduction and the reduction to the State Shared Income tax percentage, municipal retail tax incentives, weapons bill, eminent domain regulatory takings, changes regarding illegal liquor sales and referring a change to the bonding capacity to the November ballot. In response to questions from Council, Mr. Tyne reported the legislation put forward with regard to the primary property tax rate would not have an impact on the City’s bonding. Discussion ensued regarding the impact of the State tax reduction on municipalities. Mr. Schell stated that he expected to see the imminent domain issue come back before the Legislature. 2. Census Update Glen Van Nimwegen, Director of Community Development and Jeff Tyne, Budget Director, provided an update on the census. He explained the need for a mid census because of the large growth in communities such as Peoria. Mr. Van Nimwegen explained the process and results, identified trends, and discussed the impact on revenue generation, City projections, and transportation planning. The census was conducted in September 2005. There was a 100 percent response from the 4,665 individual households surveyed that identified 138,143 residents in Peoria. In response to questions by Councilmembers, Mr. Tyne reported that very good information was received regarding population estimates and the City’s long range plans would not be affected. There will be no impact to State-shared revenue. 3. Voter Registration Information Mary Jo Kief, City Clerk, reported that the primary election was scheduled for September 12th and would include ballot questions for the Mayoral seat, two councilmember seats, and Proposition 400. She discussed the voting registration procedure and required proof of citizenship. Ms. Kief also discussed early voting, voter assistance, satellite locations, identification requirements, and the upcoming candidate forum. Reports from City Council: Councilmember Dennis commented about the Governor’s upcoming visit. Councilmember Leone commented about the Peoria High School pool renovation, 4th of July flags, Police and Fire volunteers, and a recent fundraiser and the baseball game honoring Officer Weigt. He also announced that his granddaughter had been deployed to Iraq. ADJOURNMENT: Being no further business to come before the Council, the meeting was duly adjourned at 9:15 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 11th day of July, 2006. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 5th day of September 5, 2006. (Seal) ______________________________________________ Mary Jo Kief, City Clerk