MINUTES OF THE PEORIA CITY COUNCIL CITY OF PEORIA, ARIZONA COUNCIL CHAMBER October 17, 2006 A Regular Meeting of the City Council of the City of Peoria, Arizona was convened at 8401 West Monroe Street in open and public session at 7:04 p.m. Following a moment of silence, Councilmember Hickson led the Pledge of Allegiance. Members Present: Vice Mayor Vicki Hunt; and Councilmembers Cathy Carlat, Patricia Dennis, Joan Evans, Patrick Hickson and Carlo Leone. Members Absent: Mayor John Keegan Other Municipal Officials Present: Terrence Ellis, City Manager; Carl Swenson, Deputy City Manager; Susan Thorpe, Deputy City Manager; John Wenderski, Deputy City Manager; Steve Kemp, City Attorney; Mary Jo Kief, City Clerk; Stephen Bontrager, J.P. de la Montaigne, Grady Miller, Dave Moody, Brent Mattingly, Steve Prokopek, Glen Van Nimwegen and Constance Copeland. Audience: Approximately 24. Note: The order in which items appear in the minutes is not necessarily the order in which they were discussed in the meeting. Presentations: Valley Forward Award Presentation Vice Mayor Hunt described the Valley Forward Association Award Program held the previous evening. The City of Peoria was proud to receive two awards. The Environmental Excellence Award Program Award of Merit was presented to the City of Peoria Utilities Department Water Resources and Conservation Division for the City of Peoria Desert Fusion Garden in recognition of outstanding environmental achievement. Vice Mayor Hunt presented the award to Department representatives who were present. The receivers of the award were Steven Bontrager, Utilities Director, and Brad Hill, Water Resources Manager. The Environmental Excellence Award Program Award of Merit was awarded to the City of Peoria Desert Lands Conservation Overlay District in recognition of outstanding environmental achievement. Vice Mayor Hunt presented the award to Glen Van Nimwegen, Director of Community Development and recognized the work of the Department in developing an ordinance adopted by Council that protects the northern part of the City and desert from invasive development. The Ordinance set guidelines for development that will keep the City beautiful. CONSENT AGENDA: All items listed with a “C” are considered to be routine or have been previously reviewed by the City Council, and may be enacted by one motion. There was no separate discussion of these items. Vice Mayor Hunt asked if any Councilmember wished to have an item removed from the Consent Agenda. There were no requests to hear an item separately. Motion was made by Councilmember Leone, seconded by Councilmember Evans, to approve the consent agenda as submitted. Upon vote, the motion carried unanimously. 1C DISPOSITION OF ABSENCE: Approved the absence of Councilmember Joan Evans and Councilmember Patrick Hickson from the Special City Council Meeting held on September 25, 2006. 2C MINUTES: Special Meeting 4:00 p.m. – August 21, 2006 Special Meeting 7:00 p.m. – August 21, 2006 3C Annexation, 83rd Avenue and Northern Avenue ORDINANCE NO. 06-36 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA EXTENDING AND INCREASING THE CORPORATE LIMITS OF THE CITY OF PEORIA OF MARICOPA COUNTY, STATE OF ARIZONA, PURSUANT TO THE PROVISIONS OF TITLE 9, CHAPTER 4, ARTICLE 7, ARIZONA REVISED STATUTES AND AMENDMENTS THERETO, BY ANNEXING THERETO CERTAIN TERRITORY CONTIGUOUS TO THE EXISTING CITY LIMITS OF THE CITY OF PEORIA UNDER CASE ANX 05-04, AND PROVIDING FOR SEVERABILITY. Adopted ORD. 06-36 annexing approximately 5.5 acres located approximately 253 ft. west of 83rd Avenue and north of Northern Avenue. (ANX 05-04) 4C Rezoning, 75th Avenue and Thunderbird Road ORDINANCE NO. 06-37 AN ORDINANCE OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA ZONING PROPERTY FROM SUBURBAN RANCH (SR-43) TO R1-18 (SINGLE FAMILY) ZONING DISTRICT; AMENDING THE ZONING MAP AND PROVIDING FOR AN EFFECTIVE DATE. Concurred with the Planning and Zoning Commission’s recommendation and adopted ORD. 06-37 to rezone a 12.8-acre parcel generally located north and east of the northeast corner of 75th Avenue and Thunderbird Road from Suburban Ranch (SR-43) to Single-Family Residential (R1-18). (Z 06-11) 5C Grant, State Homeland Security, Community Emergency Response Team Program a) Approved the acceptance of a 2005 State Homeland Security Grant in the amount of $11,718 to enhance and sustain the Community Emergency Response Team Program (LCON10706); and b) Approved a budget transfer in the amount of $11,718 from the Proposed Grant Contingency Account to various accounts within the Homeland Security Fund to establish appropriation and expend funds. 6C Grant, Governor’s Office of Highway Safety, West Valley DUI Task Force Program RESOLUTION 06-144 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA, AUTHORIZING THE ACCEPTANCE OF A $40,000 410- FUNDING DUI TASK FORCE ENFORCEMENT PROGRAM WEST VALLEY DUI TASK FORCE GRANT FROM THE GOVERNOR’S OFFICE OF HIGHWAY SAFETY, FOCUSING ON OVERTIME TO CONDUCT ENFORCEMENT DETAILS N THE CITY OF PEORIA. a) Adopted RES. 06-144 authorizing the acceptance of grant funding in the amount of $40,000 from the Governor’s Office of Highway Safety for participation in the West Valley DUI Taskforce Program (LCON10806); and b) Approved a budget amendment in the amount of $40,000 from the Proposed Grants Contingency Account to the Occupant Protection Enforcement Program Grant Fund, Overtime Account. 7C Contract, Practice Manager Group, LLC, Legal Practice Management System a) Awarded a one-year term contract with four one-year extensions in the not-to-exceed amount of $182,309 plus tax to Practice Manager Group, LLC for a Legal Practice Management System (LPMS) that will provide the City Attorney’s Office with the ability to manage a Case Matter Management System and a Document Management System (LCON10906); and b) Authorized the purchase of system hardware in the amount of $16,000 utilizing existing State contracts. 8C Contract Amendment, Carollo Engineers, Water Infrastructure Master Plan a) Approved Contract Amendment No. 2 in an amount not to exceed $39,525 with Carollo Engineers for additional consulting services to complete the 2006 update to the Water Infrastructure Master Plan (LCON10405B); b) Authorized the use of reserves from the Water Fund; and c) Approved a budget transfer from the General Fund Contingency Account to the Water Expansion Fund, Water Systems Account. 9C Reimbursement, Centex Homes, Sweetwater Storm Drain Construction Approved reimbursement in the amount of $512,091 to Centex Homes for construction of a section of the Sweetwater Storm Drain between 87th Avenue and the Loop 101. 10C Budget Transfer, Utilities Department, New River and Agua Fria Underground Storage Project a) Approved the use of Water Fund Reserves; and b) Authorized a budget transfer in the amount of $118,600.20 from the General Fund Contingency Account to the Water Fund, Water Resource Fee Account for the City’s share of operations and maintenance costs for participation in the New River and Agua Fria Underground Storage Project. 11C Budget Transfer, Utilities Department, New River and Agua Fria Underground Storage Project a) Approved the use of Water Fund Reserves; and b) Authorized a budget transfer in the amount of $27,968.28 from the General Fund Contingency Account to the Water Expansion Fund Account for the City’s share of capital costs incurred in 2006 for participation in the New River and Agua Fria Underground Storage Project. 12C Budget Transfer, Sports Complex Improvements Approved a budget transfer in the amount of $14,000 from the General Fund Contingency Account to the Sports Complex Improvements Reserve Fund Grounds/Detention Repairs and Maintenance Account for improvements of the dugout safety railing systems at the Sports Complex. 13C Maintenance Improvement District No. 1023, Vistancia Parcel A29, Ridgeline Road and Sunrise Point Road RESOLUTION NO. 06-145 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEORIA, ARIZONA, DECLARING ITS INTENTION TO CREATE AN IMPROVEMENT DISTRICT TO MAINTAIN LANDSCAPING INCLUDED WITHIN, NEAR AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, FOR MAINTENANCE WITHIN AN AREA IN THE CITY OF PEORIA AS DESCRIBED HEREIN; ADOPTING PLANS FOR CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 1023, VISTANCIA PARCEL A29, AS MORE PARTICULARLY DESCRIBED HEREIN, AND DECLARING THE WORK OR IMPROVEMENT TO BE OF MORE THAN LOCAL OR ORDINARY PUBLIC BENEFIT, AND THAT THE COST OF SAID WORK OR IMPROVEMENT SHALL BE ASSESSED UPON A CERTAIN DISTRICT, AND PROVIDING THAT THE PROPOSED WORK OR IMPROVEMENT SHALL BE PERFORMED UNDER ARIZONA REVISED STATUTES TITLE 48, CHAPTER 4, ARTICLE 2, AND AMENDMENTS THERETO AND DECLARING AN EMERGENCY. RESOLUTION NO. 06-146 RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA DECLARING ITS INTENTION TO ORDER THE IMPROVEMENTS OF A CERTAIN AREA WITHIN THE CORPORATE LIMITS OF THE CITY AND CREATING AN IMPROVEMENT DISTRICT KNOWN AS THE CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 1023, VISTANCIA PARCEL A29; PROVIDING THAT THE COST OF THE MAINTENANCE OF THE LANDSCAPING INCLUDED WITHIN, NEAR, AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, SHALL BE ASSESSED UNDER THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 2, ARIZONA REVISED STATUTES, AS AMENDED; AND DECLARING AN EMERGENCY. Approved the Petition of Formation and adopted RES. 06-145 intention and ordering formation of proposed Maintenance Improvement District No. 1023, Vistancia Parcel A29, located on Ridgeline Road east of Sunrise Point Road; and adopted RES. 06-146 ordering the work within the proposed Maintenance Improvement District. 14C Maintenance Improvement District No. 1043, Park Rose, 75th Avenue and Cactus Road RESOLUTION NO. 06-147 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEORIA, ARIZONA, DECLARING ITS INTENTION TO CREATE AN IMPROVEMENT DISTRICT TO MAINTAIN LANDSCAPING INCLUDED WITHIN, NEAR AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, FOR MAINTENANCE WITHIN AN AREA IN THE CITY OF PEORIA AS DESCRIBED HEREIN; ADOPTING PLANS FOR CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 1043, PARK ROSE, AS MORE PARTICULARLY DESCRIBED HEREIN, AND DECLARING THE WORK OR IMPROVEMENT TO BE OF MORE THAN LOCAL OR ORDINARY PUBLIC BENEFIT, AND THAT THE COST OF SAID WORK OR IMPROVEMENT SHALL BE ASSESSED UPON A CERTAIN DISTRICT, AND PROVIDING THAT THE PROPOSED WORK OR IMPROVEMENT SHALL BE PERFORMED UNDER ARIZONA REVISED STATUTES TITLE 48, CHAPTER 4, ARTICLE 2, AND AMENDMENTS THERETO AND DECLARING AN EMERGENCY. RESOLUTION NO. 06-148 RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA DECLARING ITS INTENTION TO ORDER THE IMPROVEMENTS OF A CERTAIN AREA WITHIN THE CORPORATE LIMITS OF THE CITY AND CREATING AN IMPROVEMENT DISTRICT KNOWN AS THE CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 1043, PARK ROSE; PROVIDING THAT THE COST OF THE MAINTENANCE OF THE LANDSCAPING INCLUDED WITHIN, NEAR, AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, SHALL BE ASSESSED UNDER THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 2, ARIZONA REVISED STATUTES, AS AMENDED; AND DECLARING AN EMERGENCY. Approved the Petition of Formation and adopted RES. 06-147 intention and ordering formation of proposed Maintenance Improvement District No. 1043, Park Rose, located on 75th Avenue north of Cactus Road; and adopted RES. 06-148 ordering the work within the proposed Maintenance Improvement District. 15C Street Light Improvement District No. 1014, Vistancia Parcel A29, Ridgeline Road and Sunrise Point Road RESOLUTION NO. 06-149 RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA DECLARING ITS INTENTION TO ORDER THE PURCHASE OF ELECTRICITY FOR LIGHTING THE STREETS AND PUBLIC PARKS WITHIN THE PROPOSED DISTRICT AND THAT THE COST OF THE PURCHASE OF ELECTRICITY FOR LIGHTING THE STREETS AND PUBLIC PARKS, BE ASSESSED UPON A CERTAIN IMPROVEMENT DISTRICT TO BE KNOWN AS CITY OF PEORIA STREETLIGHT IMPROVEMENT DISTRICT NO. 1014, VISTANCIA PARCEL A29; PROVIDING THAT THE COST OF THE ELECTRICITY REQUIRED TO OPERATE THE SYSTEM BE ASSESSED UNDER THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 2, ARIZONA REVISED STATUTES, AS AMENDED; AND DECLARING AN EMERGENCY. RESOLUTION NO. 06-150 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA ORDERING THE IMPROVEMENTS OF CERTAIN STREETS AND RIGHTS-OF-WAY WITHIN THE CORPORATE LIMITS OF THE TOWN AND CREATING AN IMPROVEMENT DISTRICT KNOWN AS THE CITY OF PEORIA STREETLIGHT IMPROVEMENT DISTRICT NO. 1014, VISTANCIA PARCEL A29, PURSUANT TO TITLE 48, CHAPTER 4, ARIZONA REVISED STATUTES AND AMENDMENTS THERETO FOR THE PURPOSE OF PURCHASING ELECTRICITY, WHICH INCLUDES A CHARGE FOR THE USE OF LIGHTING FACILITIES AND OTHER RELATED ITEMS TOGETHER WITH ALL APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, AND DECLARING AN EMERGENCY. Approved the Petition of Formation and adopted RES. 06-149 intention and ordering formation of proposed Street Light Improvement District No. 1014, Vistancia Parcel A29, located on Ridgeline Road east of Sunrise Point Road; and adopted RES. 06-150 ordering the purchase of electricity for lighting streets and parks within the proposed Street Light Improvement District. 16C Street Light Improvement District No. 1018, Park Rose, 75th Avenue and Cactus Road RESOLUTION NO. 06-151 RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA DECLARING ITS INTENTION TO ORDER THE PURCHASE OF ELECTRICITY FOR LIGHTING THE STREETS AND PUBLIC PARKS WITHIN THE PROPOSED DISTRICT AND THAT THE COST OF THE PURCHASE OF ELECTRICITY FOR LIGHTING THE STREETS AND PUBLIC PARKS, BE ASSESSED UPON A CERTAIN IMPROVEMENT DISTRICT TO BE KNOWN AS CITY OF PEORIA STREETLIGHT IMPROVEMENT DISTRICT NO. 1018, PARK ROSE; PROVIDING THAT THE COST OF THE ELECTRICITY REQUIRED TO OPERATE THE SYSTEM BE ASSESSED UNDER THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 2, ARIZONA REVISED STATUTES, AS AMENDED; AND DECLARING AN EMERGENCY. RESOLUTION NO. 06-152 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA ORDERING THE IMPROVEMENTS OF CERTAIN STREETS AND RIGHTS-OF-WAY WITHIN THE CORPORATE LIMITS OF THE TOWN AND CREATING AN IMPROVEMENT DISTRICT KNOWN AS THE CITY OF PEORIA STREETLIGHT IMPROVEMENT DISTRICT NO. 1018, PARK ROSE, PURSUANT TO TITLE 48, CHAPTER 4, ARIZONA REVISED STATUTES AND AMENDMENTS THERETO FOR THE PURPOSE OF PURCHASING ELECTRICITY, WHICH INCLUDES A CHARGE FOR THE USE OF LIGHTING FACILITIES AND OTHER RELATED ITEMS TOGETHER WITH ALL APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, AND DECLARING AN EMERGENCY. Approved the Petition of Formation and adopted RES. 06-151 intention and ordering formation of proposed Street Light Improvement District No. 1018, Park Rose, located on 75th Avenue north of Cactus Road; and adopted RES. 06-152 ordering the purchase of electricity for lighting streets and parks within the proposed Street Light Improvement District. 17C Utility Easement, Jiffy Lube, 8941 W. Union Hills Drive RESOLUTION NO. 06-153 RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA, AUTHORIZING THE GRANTING OF A PUBLIC UTILITY EASEMENT, ASSOCIATED WITH THE CONSTRUCTION OF THE JIFFY LUBE AT 8941 W. UNION HILLS. Adopted RES. 06-153 authorizing the City Manager to execute an electric utility easement to Arizona Public Service associated with construction of a Jiffy Lube located at 8941 W. Union Hills Drive. 18C Utility Easement/Roadway Dedication, Fire Station No. 191, 81st Avenue and Peoria Avenue RESOLUTION NO. 06-154 RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA, AUTHORIZING THE GRANTING OF A PUBLIC UTILITY EASEMENT AND A ROADWAY DEDICATION ASSOCIATED WITH FIRE STATION NO. 191 (PEORIA AVENUE/81ST AVENUE). Adopted RES. 06-154 authorizing the City Manager to execute a public utility easement and a dedication of public roadway for Fire Station No. 191 to be located at 81st Avenue and Peoria Avenue. 19C Deeds and Easements, Various Locations RESOLUTION NO. 06-155 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. 06-155 accepting deeds and easements for various real property interests acquired by the City and previously recorded by the Maricopa County Recorder’s Office. 20C Designate Roadways, Establish Rights-of-Way, Various Locations RESOLUTION NO. 06-156 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. 06-156 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. 21C Final Plat, Plaza del Rio Phase 1, Plaza del Rio Boulevard and Thunderbird Road Approved the final plat for Plaza del Rio Phase 1, a 25-lot subdivision, located on the west side of Plaza del Rio Boulevard south of Thunderbird Road, subject to stipulations. (R050164) 22C Final Plat, Strada Collina, 92nd Avenue and Jomax Road Approved the final plat for Strada Collina, a 3-lot subdivision, located at the southeast corner of 92nd Avenue and Jomax Road. (R060062) REGULAR AGENDA 23R PUBLIC HEARING – Restaurant Liquor License, Native New Yorker, 16055 N. 83rd Avenue PUBLIC HEARING: Vice Mayor Hunt opened the Public Hearing and asked if any Councilmember or citizen wished to comment on requests for a new Restaurant Liquor License (Series 12) for Native New Yorker located at 16055 N. 83rd Avenue, Building B. Applicant: Amy Nations. LL#10007140 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. In response to questions from Vice Mayor Hunt, Ms. Kief reported that the applicants were invited to be in attendance. There being no comments from those present and none received in the City Clerk’s Office, Vice Mayor Hunt declared the Public Hearing closed. Council Action: Motion was made by Councilman Hickson, seconded by Councilmember Leone, to recommend approval to the State Liquor Board of a new Restaurant Liquor License (Series 12) for Native New Yorker located at 16055 N. 83rd Avenue, Building B. Applicant: Amy Nations. LL#10007140. Upon vote, the motion carried unanimously. 24R Rezoning, 83rd Avenue and Olive Avenue ORDINANCE NO. 06-38 AN ORDINANCE OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA ZONING PROPERTY FROM C-2 (INTERMEDIATE COMMERCIAL) AND O-1 (OFFICE COMMERCIAL) TO PLANNED AREA DEVELOPMENT (PAD) ZONING DISTRICT; AMENDING THE ZONING MAP AND PROVIDING FOR AN EFFECTIVE DATE. Glen Van Nimwegen, Director of Community Development, presented an overview of the rezoning application to rezone approximately 18.5 gross acres located at the northeast corner of 83rd Avenue and Olive Avenue from Intermediate Commercial (C-2) and Office Commercial (O-1) to Planned Area Development (PAD) for a mixed-use development that would include retail, office and residential usage. The Central Peoria revitalization plan also describes the appropriate use for this corner and allows medium to high-density office or retail uses and medium to high-density residential or office uses. This is a key mixed-use location for the City. Mr. Van Nimwegen described the unique design. The center mixed use area, which is closest to the corner, includes retail uses on the ground floor. There is parking below grade. There is loft development for ownership condominiums directly above. This will be a vertically integrated mixed-use development. The remainder of the site is additional stand- alone condominiums. The residential portion of the site is roughly 18 units per acre and the loft units above the retail are approximately 10 units per acre. Overall the density is 14.7 units per acre. There are 4.7 acres of retail on the corner with a central recreation facility for all the residential uses. Roughly 7 percent of the overall site is devoted to open space. The applicant has put together a PAD which limits the retail uses to what is appropriate for a pedestrian oriented retail development. Some additional buffering of the adjacent residential neighborhood has been done. The developer has worked with the neighborhood quite extensively. Two neighborhood meetings were held, one on March 16th, the other on April 27th. The neighbors had an input on the development and the density was reduced because of their input. The developer agreed to additional buffering on that common property line. An 8-foot screen wall and 30 feet of landscaping before the condominium buildings garages is being put in. There are lighting restrictions that keep a low- level lighting to reduce intrusion on the adjacent neighborhood. Increased landscaping has been imposed. The developer removed the vehicular access to Hatcher Road that is along the north end of the project to further reduce the traffic that might potentially cut through the neighborhood. This also reduced some of the more noxious uses from the retail area. The planning and zoning commission voted four to one in favor of the project. There were some neighborhood concerns. The school district and the developer agreed to a participation agreement on this project. Discussion ensued regarding pedestrian access for the surrounding neighborhoods. There would be access directly through the park site and residential area to the retail portion. Access from that point is strictly pedestrian. In response to questions from Council, Mr. Van Nimwegen explained that this rezoning will not affect the zoning of any neighboring properties. Mr. Van Nimwegen added that the applicant added a large 8-foot wall as a sound buffer, added landscape and moved the units as far back as they could. Nick Wood from the law firm of Snell & Wilmer, representing the applicant, explained that the setback required by the PAD standards is 30 feet, but the applicant made the setback 74 feet. Neighbors were satisfied. Discussion ensued regarding proposed access. Mr. Wood explained that neighbors were quite unequivocal that they do not want any access gates in their neighborhood. They did accept the access to the park. Mr. Wood noted that they tried to do exactly as Council suggested but the neighbors were adamant about saying no. In response to questions from Council regarding maintaining the continuity of the downtown designs, Mr. Wood stated the project will still have to go through design review and will have to comply with the design standards. Mr. Wood added that he was working with Vice Mayor Hunt on the design/development of the adjacent 120 acre project. He explained a trail system that will come down on the side of Roundtree Ranch and continue to the park. Mr. Wood stated they plan to integrate the pedestrian circulation as well as incorporate the design with the rest of the downtown area. Motion was made by Councilman Evans, seconded by Councilmember Hickson, to concur with the Planning and Zoning Commission’s recommendation and adopt ORD. 06-38 to rezone approximately 18.5 gross acres located at the northeast corner of 83rd Avenue and Olive Avenue from Intermediate Commercial (C-2) and Office Commercial (O-1) to Planned Area Development (PAD). (Z 05- 27) Upon vote, the motion carried unanimously. 25R Rezoning, 75th Avenue and Peoria Avenue ORDINANCE NO. 06-39 AN ORDINANCE OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA REZONING PROPERTY FROM INTERMEDIATE COMMERCIAL (C-2) TO PLANNED AREA DEVELOPMENT (PAD) ZONING DISTRICT; AMENDING THE ZONING MAP AND PROVIDE FOR AN EFFECTIVE DATE Glen Van Nimwegen, Director of Community Development, presented an overview of the rezoning application for approximately 7.3 gross acres located east and south of the southeast corner of 75th Avenue and Peoria Avenue from Intermediate Commercial (C-2) to Planned Area Development (PAD) for a development proposing up to 85 owner-occupied townhouse units. The General Plan states that the area is appropriate for low density residential which allows the density range of two to five units per acre with a target density of three units per acre. However, in this case the site has been zoned C-2 since it was first annexed into the City in 1960. There is a provision in the General Plan t for rezoning an existing commercial site to permit townhouse density that will still meet the tenants of the General Plan. All the other requirements of the General Plan as far as providing appropriate infill development and appropriate residential densities must be met. It does allow the provision of down zoning existing sites. In this case, Staff feels some antiquated C-2 zoning, could go to a little higher density. This is considered an infill development project. Staff is providing a PAD with conditions to the project for fitting in well with the adjacent neighborhood. This will be 85 townhouse units, owner occupied and a gated subdivision on roughly 7.3 acres. The overall density of this project is just under 12 units per acre or 11.6 units per acre. There will be both two story and three story units. The height of the units adjacent to the residential neighborhood has been reduced. Those units are also duplex units. There will be no long row house adjacent to the residential to allow views between the units. The developer is also providing a 20 foot landscape buffer. The planting of a large canopy tree will provide a good screen in the future. One concern of some neighbors was about views from these units into their backyards. Staff added a condition that limits those views architecturally on those back elevations. Changes were made directly from the June 2006 neighborhood meeting including reducing the height of the three-story units adjacent to the neighborhood to two stories. The Developer has met with the school district and has agreed to participate in a participation contract with the school district. The planning and zoning commission voted in favor of the project five to zero. Staff is recommending approval of adoption of this PAD ordinance with conditions. In response to questions from Council, Larry Lazarus, representing the applicant, advised that window details have not been finalized. Discussion ensued about looking at the possibility of providing more pedestrian access to neighboring commercial properties. Mr. Van Nimwegen explained the Central Peoria revitalization plan recommended for areas that remained in commercial zoning for a long time and had not been developed. It may be appropriate to increase the market area by providing additional residential zoning. Staff will work for a good balance of commercial and residential zoning and a good buffer with the existing neighborhood. The property might have remained vacant for another 25 years. This plan is probably the highest and best use for this property at this point. Motion made by Councilman Hickson, seconded by Councilman Carlat, to concur with the Planning and Zoning Commission’s recommendation and adopt ORD. 06-39 to rezone approximately 7.3 gross acres located east and south of the southeast corner of 75th Avenue and Peoria Avenue from Intermediate Commercial (C-2) to Planned Area Development (PAD) for a development proposing up to 85 owner-occupied townhouse units. (Z06-13). Upon vote, the motion carried unanimously. 26R Notice of Intent, Wal-Mart Stores, Inc., 79th Avenue and Peoria Avenue Steve Prokopek, Director of Economic Development, explained that State Law requires that prior to discussing any type of development agreement that relates to sales tax reimbursements, the City must notify the public and the Council at least 14 days prior to any discussion. Last spring, the City felt they had an agreement near completion that would have gone before Council went on break, but that did not materialize. Staff felt it was appropriate to redo the Notice of Intent for the 14 day notice as the City now has a signed agreement from Wal-Mart. Upon approval of this Notice of Intent, the agreement will go to a third-party financial reviewer as prescribed by law. It will go back to Council on November 14, 2006 to discuss the project including the sales tax reimbursements and the infrastructure involved. The site is located at Peoria and 79th Avenue for the Wal-Mart store that is being developed in conjunction with the downtown area. In response to questions from Council, Mr. Prokopek explained that most of the sales tax agreements with the City are tied to some type of public benefit like infrastructure development. All sales tax reimbursements for this development will be tied directly to public infrastructure built on the behalf of the City. In response to questions from Council, Mr. Prokopek clarified that law also requires the City to have a third party review of the development agreement to ensure that it meets State laws prior to going to Council for approval. A consultant has to be hired by the City and not by the private developer. Mr. Prokopek advised that Staff will be discussing every aspect of this project as it relates to the development agreement and the Wal-Mart project at a future Council meeting. They will be able to answer any questions as it relates to the development agreement at that time. Steve Kemp, City Attorney, clarified that the agenda tonight is to review the issue of whether Council wants to issue a Notice of Intent for this agreement or not. The agenda item does not permit discussion of the project merits. The discussion will be on November 14, 2006 Council Agenda. Motion was made by Councilmember Dennis, seconded by Councilmember Carlat, to adopt a notice of intent to enter into a development agreement that includes retail sales tax reimbursements with Wal-Mart Stores, Inc. for a project located at 79th Avenue and Peoria Avenue. Upon vote, the motion carried unanimously. 27R Contract, Westin Engineering, SCADA Master Plan Brad Hill, Water Resources Manager, provided an overview of the Supervisory Control and Data Acquisition (SCADA) Master Plan, related technologies and talked about why the City would like to move forward with this planning effort. SCADA is an industry term describing the technology used to control a piece of equipment out in the field. In the water and waste water utility industry, it is used to control and monitor water production, treatment and distribution facilities. Technologies range from industrial field computers all the way to the more traditional servers that are in City control rooms such as those at the Greenway Water Treatment Plant that house software and collect the data. This requires specialized software and programming expertise. Given the large distances between City remote utility facilities, the SCADA system also provides a separate network of towers, microwaves and other communication devices. The City has recently invested in upgrades to the SCADA system to enhance operational monitoring, operational control, security alarming and notification. Mr. Hill stressed the importance of employing process control technology for the 73 utilities facilities to an integrated system. Staff requests approval to hire Weston Engineering, technology experts, to prepare a SCADA Master Plan to enhance operations and to repair and replace existing SCADA infrastructure. In response to questions from Council, Mr. Hill clarified that plans are to develop a SCADA control center at the Beardsley site as a separate communications hub. The City plans to operate the system as two hubs. The consultant will advise how other technologies can be integrated into the system network. In response to questions from Councilmember Hickson regarding cost savings, Steven Bontrager, Utilities Director, explained that there are efficiencies gained from using the SCADA system although the system will not necessarily reduce the need for additional staff. It does reduce the rate of staff growth so that the City can rely more on the system for operational control. Motion was made by Councilmember Carlat, seconded by Councilmember Hickson, to award a contract in an amount not to exceed $105,000 to Westin Engineering, Inc. for development of the SCADA Master Plan. (LCON11006) Upon vote, the motion carried unanimously. 28R Contract Amendment, Carter Burgess, Beardsley Road Extension Design Services Chris Kmetty, Senior Civil Engineer, Engineering Department, presented an overview on the Beardsley Road extension and contract amendment for the final design of the project with Carter Burgess. He advised that in 2002, the City of Peoria and City of Glendale completed the North Central Peoria Circulation Study. Several recommendations were made following the study. In conjunction with Arizona Department of Transportation (ADOT) and the City of Glendale, the connection to the Loop 101 from 83rd Avenue and Beardsley to the Loop 101 was evaluated. Eight public meetings were held from June 2004 through December 2005. Carter Burgess submitted the final design concept report as well as 30 percent plans to the City and ADOT. In July 2006, Peoria and ADOT performed a value engineering analysis on the 30 percent plans. Engineering had several recommendations that were incorporated in the design. Two of the recommendations are still being evaluated and with the approval of this design amendment, the project will be split into two construction phases to construct the project faster. The City budgeted this project in two construction years: Fiscal Year 2008 and Fiscal Year 2009. ADOT’s standard policy is not to begin construction until all funds are available from the City. The City can contract with one contractor to start construction in 2008 and then ADOT would construct the remainder of the project in Fiscal Year 2009. Mr. Kmetty explained the plans for improved geometry at the Beardsley 101 intersection, which would have traffic calming effects, reduced savings with a retaining wall, the reduction of the utility relocations, as well as increased aesthetic options for the project. The first construction package will be the improvements from 83rd Avenue to 81st Avenue. The second construction package will be the improvements from 81st Avenue to the Loop 101 and all Loop 101 facilities. Plans are to construct a roundabout at 81st Avenue and Beardsley Road. Mr. Kmetty reported that in the Fall 2007, the City will construct under the current proposal, the value engineering recommendation to construct the 81st to 83rd Avenue segment in the Spring 2008. An environmental clearance and all other clearances required by ADOT will be obtained. During the Summer 2008, ADOT will advertise the portion that would be built within their right of way and construction is to begin in Fall 2009 once funds are appropriated. In response to questions from Council, Mr. Kmetty clarified that the proposed contract with Carter Burgess is to further the design contract to the 30 percent level and then finish the design contract. He added that the timeline would not be extended with this new amendment. Mr. Kmetty stated that Staff will come back to Council with any modifications to the design. The contract approval would be for design costs only. The major aspects of the design are 7/10 of a mile of frontage road that will be built from 75th Avenue down to Union Hills as well as two new structures. One would be the elevated Texas U-turn down at Union Hills that would be approximately the same elevation as the current Union Hills structure and includes a new bridge. There will be bank protection along either side of the bank in that area as well as a preliminary layout for a trailhead in this area. The City will be negotiating right-of-way with the one property owner for the roadway and the trailhead as well as the design of the widening of Beardsley in its existing condition from 81st to 83rd Avenues and all appropriate permits, coordination with ADOT, the City of Glendale and the public. In response to questions from Council, Mr. Kmetty reported that current construction estimates are approximately $20 million. The City of Peoria will be responsible for the construction administration. ADOT will be building the project. Councilmember Hickson noted that vacant land to the north side will be developed in the future. If the City waits to do this project, it is going to be a lot more expensive and the residents will be negatively impacted in the interim. In response to questions from Councilmember Hickson, Mr. Kmetty reported that the final date for ADOT to start construction is in Fiscal Year 2009. Construction is expected to take 14 to 16 months to complete. Staff anticipates completion in 2010. Discussion ensued regarding the need to accelerate transportation projects to address traffic issues on the Loop 101 in the northern part of Peoria. In response to questions from Council regarding when the design work will be completed, Mr. Kmetty advised if approved, the City will have final design kick-off. Early next year more detailed analysis should be available for Council and the public. There should be better computer graphics to show at that time also. Ron Helm, Peoria resident, stated several concerns regarding the timeline for the project. He asked about the total construction costs and costs for the acquisition of the right-a-way. Mr. Helm also asked for additional public hearings. Dave Moody, Director of Engineering, reported that the City hopes to use funding from the State Transportation Acceleration Needs (STAN) Program to accelerate the project on the widening of Union Hills. There is a 30 percent match minimum that the City must do. The Phase 2 for the regional transportation plan will start in 2011. Mr. Moody advised that he had met with Eric Anderson of Maricopa Association of Governments (MAG) and the assistant state engineer regarding accelerating the Traffic Interchange Project for Union Hills. They are proposing to provide design funds later this year for Fiscal Year (FY) 2007 to widen the Union Hills bridge. Construction will be ready to start in FY 2009. Discussion ensued regarding the timing of the projects including building a frontage road and “Texas U-turn.” The City will save millions of dollars if we can partner with ADOT to advance their funds into ours. If these projects can be coordinated, then most of the improvements on Union Hills and on Beardsley will be done. Construction will start in FY 2009 with completion in 2010. In response to questions from Council, Mr. Moody confirmed that the Traffic Interchange is for the bridge over the Loop 101. ADOT will look at the actual ramps both on and off to ensure there will be adequate storage and capacity on the arterial. At this time, there are no plans for the City of Glendale to expand Beardsley to the East. That is in the regional transportation plan in the second phase for ADOT. Motion was made by Councilwoman Carlat, seconded by Councilman Hickson, to approve Contract Amendment No. 4 in the amount of $1,430,720 with Carter Burgess for design services for the Beardsley Road extension project. (LCON08003D). Upon vote, the motion carried unanimously. 29R Additional Funding, Camino á Lago South Development Discussion and possible action to approve additional funding over the estimate contained in the development agreement with CHI Construction Company for the Camino á Lago South development. Clerk’s Note: The item was removed from the agenda at the request of Staff. 30R Improvement District No. 0601, Parke West, Loop 101 and Northern Avenue RESOLUTION NO. 06-157 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEORIA, ARIZONA, (A) DECLARING ITS INTENTION TO IMPROVE THE AREA WITHIN THE CORPORATE LIMITS OF THE CITY OF PEORIA, ARIZONA, DESCRIBED IN EXHIBIT "A" AND INDICATED ON THE MAP IN EXHIBIT "B" HERETO BY FURNISHING OF ALL LABOR, MATERIALS, TRANSPORTATION, SERVICES AND EQUIPMENT NECESSARY TO CONSTRUCT FACILITIES ALONG, OVER, UNDER, AND ACROSS THE 99TH AVENUE ALIGNMENT FOR A DISTANCE OF APPROXIMATELY 1600 FEET FROM THE NORTHERN AVENUE RIGHT-OF-WAY TO THE NORTHERN LIMITS OF THE SALT RIVER PROJECT POWER LINE CORRIDOR AND ACROSS THE NORTHERN AVENUE ALIGNMENT FOR A DISTANCE APPROXIMATELY 1340 FEET FROM THE 99TH AVENUE RIGHT-OF-WAY TO THE EAST, INCLUDING PUBLIC ROADWAYS TOGETHER WITH ASPHALT CONCRETE PAVEMENT, ASPHALT CONCRETE OVERLAY, CONCRETE CURB AND GUTTER, DRIVEWAYS, SIDEWALKS, APRONS, PUBLIC STORM DRAIN FACILITIES, PUBLIC SANITARY SEWER FACILITIES, PUBLIC WATER FACILITIES, LANDSCAPING, IRRI- GATION FACILITIES, SIGNING AND STRIPING IMPROVEMENTS, TRAFFIC SIGNALS AND ALL NECESSARY ADJUNCTS AND APPURTENANCES AS DESCRIBED (1) ON THE PRELIMINARY PLANS FOR SUCH IMPROVEMENTS AND (2) IN SUMMARY FASHION IN EXHIBIT "C" HERETO; (B) DETER- MINING THAT IMPROVEMENT BONDS BE ISSUED TO REPRESENT THE COST AND EXPENSES THEREOF; (C) DECLARING (1) SUCH IMPROVEMENTS TO BE OF MORE THAN LOCAL OR ORDINARY PUBLIC BENEFIT AND (2) THAT THE COSTS OF SUCH IMPROVEMENTS BE ASSESSED UPON A CERTAIN DISTRICT TO BE KNOWN AS "CITY OF PEORIA, ARIZONA IMPROVEMENT DISTRICT NO. 0601" AND (D) PROVIDING THAT SUCH IMPROVEMENTS BE PROVIDED FOR UNDER THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 2, ARIZONA REVISED STATUTES, AS AMENDED Brent Mattingly, Finance Director, explained the Resolution of Intent would establish an improvement district for Park West Development at Loop 101 and Northern Avenue. The improvement district would authorize the issuance of bonds to pay for the construction of those improvements and would authorize City Staff to issue a solicitation for bids to construct those improvements and ultimately place assessments on the properties that would benefit from these improvements. The development includes several components, a large 360,000 square feet of retail space. It also includes multi-family construction, office space and a site for the potential construction of a hotel. The general location of the improvement district would extend along Northern Avenue, along Loop 101 going from east to west across the northern edge of that property and then down 99th Avenue. Mr. Mattingly reviewed the background on the development and recent amended agreements. Council approved a development agreement with the Glimcher Company who owned the retail site. Other property owners owned other PADs that were going to be used for other parts of the mixed-use development. In February of 2006, Council amended the agreement for two reasons. The original agreement specified one improvement district that would not construct interior improvements to the project. There is also a frontage road that was required to be built by the developer. The improvement district was a vehicle to finance that construction. The frontage road had to be built in conjunction with ADOT, which was going to be delayed. In the amendment the City created two improvement districts rather than one and extended the timeline in the development agreement for the completion of the project. Mr. Mattingly reported that there is a new owner of the retail property. General Growth Partners has acquired 100 percent ownership interest in the retail piece. Glimcher will stay on as their consultant and construction manager for the project. Wood Partners is the owner of the apartment component. Shea Commercial owns the property where the office is going to be constructed. This improvement district will construct a number of roadway improvements including asphalt, curb and gutter, storm drains, water lines and sanitary sewer lines. There are also some water or sewer improvements interior to the project: sidewalks, lighting facilities, irrigation, signage, striping and traffic signal improvements. The development agreement allows for a second improvement district to come later that would construct frontage road improvements from Northern Avenue up to Olive Avenue. The engineer’s estimate establishes that the improvement district would assume the maximum cost, including construction costs. Also included are costs for construction management, inspection of the construction as well as general administration and engineering services. The City’s financial adviser is involved in this process as well as an outside bond counsel. There are other costs associated with obtaining bonds rated by a rating agency including bond insurance costs and other costs associated with the sale. Mr. Mattingly explained capitalized interest, which extends for the period of construction plus another six months paying any interest on the bonds during that period of construction. The resolution before Council forms the primary improvement district and directs Staff to proceed with the bidding process. The approval and award of a construction contract will come back before Council for action. The adoption of the resolution will also permit the City to go out and sell bonds on a competitive basis. The developer is out for bid on the project and anticipates award of those bids and start of construction within the next couple of weeks. The improvement district plans and specifications should be finished in November. The City will bid the project and the sale of bonds is scheduled for February 2007. After the sale of those bonds, Staff will come back to the Council for the award the construction contract and the bond contract. The Utilities Department has the Butler Project scheduled to run concurrently with this project. In January, the Utilities Department will begin construction of sewer lines on 99th Avenue as well as on Northern Avenue. In February 2007, construction will start on the improvement district. The Butler improvements should be finished in May 2007. The improvement district construction should be finished in September. Park West opening is scheduled for November of 2007. There required careful coordination. In response to questions from Council, Mr. Mattingly clarified that under the Amended Development Agreement 150,000 square feet of retail has to be opened by November of 2007. The Woods, the apartment owner, is anxious to begin construction on their project immediately. Councilmember Leone asked about delays to the project. Mr. Mattingly advised that the November 2007 opening was agreed on in the amendments of the development agreement. The developer has reported actual on-site activity should begin within the next couple of weeks. Steve Kemp, City Attorney, advised that the Resolution of Intention was on the Council Agenda for this meeting. It is not appropriate to discuss the time frames and delays on the project and the project itself. Council may discuss the timeline of the project as it pertains to the improvement district. Mr. Mattingly clarified that in terms of the improvement district, the sale of the bonds and the award of the construction contract is anticipated for February 2007. The contractor for the improvement district construction activity would begin immediately upon award of the contract. Completion of the improvement district is anticipated for September 2007. In response to questions from Council regarding what triggers the secondary improvement district, Mr. Mattingly stated that the planning for those improvements is in conjunction with ADOT. Dave Moody, Engineering Director, advised that the design was awarded in late August or early September. This morning the consultant advised the survey is complete. The frontage road improvement district is estimated to come before Council in about nine months. Councilmember Hickson asked what expenses will be borne by the City as opposed to the developer. Mr. Mattingly reported that when an improvement district is formed and bonds are issued for the construction, the debt service payments on the bonds are paid by property owners. He explained that there is a financing mechanism that the owners of those benefited properties will be paying off those bonds. Motion was made by Councilman Evans, seconded by Councilwoman Carlat, to adopt RES. 06-157: a) Declaring intention to improve a certain area within the corporate limits of the City with facilities along, over, under, and across the 99th Avenue alignment for a distance of approximately 1600 feet from the Northern Avenue right-of- way to the northern limits of the Salt River Project power line corridor and across the Northern Avenue alignment for a distance approximately 1340 feet from the 99th Avenue right-of-way to the east; b) Determining that improvement bonds be issued to represent the cost and expenses thereof; c) Declaring (1) such improvements to be of more than local or ordinary public benefit and (2) that the costs of such improvements be assessed upon a certain district to be known as "City of Peoria, Arizona Improvement District No. 0601" and; d) Providing that such improvements be provided for under the provisions of Title 48, Chapter 4, Article 2, Arizona Revised Statutes, as amended. Upon vote, the motion carried unanimously. CALL TO PUBLIC: (NON-AGENDA ITEMS) - None Reports from the City Manager: Terry Ellis, City Manager, asked the City Clerk Mary Jo Kief to present an election update. Mary Jo Kief, City Clerk, announced that Maricopa County has established a second polling location for the Whitman precinct for the voters within the city limits of Peoria. They will vote at the Vistancia School at 30,009 North Sunrise Point. Those who have requested an early ballot may drop off their early ballot on Election Day at that polling place. The City Clerk’s Office worked with Maricopa County to resolve the difficulty of the distance to the polls for this community. Ms. Kief also noted that Election Day is November 7, 2006. Report on Ballot Proposition 207 Terry Ellis, City Manager, explained that Council had directed Staff to analyze the impact of Proposition 207 and bring a report back. Mr. Ellis addressed issues related to the Ballot Proposition 207 whereby a property owner who believes that a city has diminished the value of his or her property has a legal right supported by law to a claim. If the claim were found to be valid, the city would have to pay them in cash. There is no insurance available for the City to cover this scenario. The City would have to basically pay that claim with no negotiation. Mr. Ellis provided information on the background of this ballot initiative and explained that this is not a grassroots effort, but the effort of one individual who has funded the campaign and used paid signature gatherers. Mr. Ellis reported that people are misled to believe that the proposition is about protecting property rights verses regulatory taking. He explained the implications of this kind of action in Oregon in 2004 through Measure 37. Measure 37 basically dismantled land-use regulation in Oregon. To date there have been over 3000 claims against government for diminished value in Oregon. That is over 3000 since 2004 with an estimated worth of $5.6 billion which has not been paid. There is no money to pay it. Government is basically frozen in this regard. The same man, Howard Rich, has funded the measure in Oregon again and talked about abuse of eminent domain. The payoff was the regulatory takings of over 3000 claims. Local government has essentially stopped regulating in Oregon. Local government agencies are just not saying no and they are letting anything that stands go through. Their approvals and their regulations have been frozen. They are not going to do anything that looks like a change because if someone claims a diminished value, then the government must pay. Mr. Ellis reported that the public is not going to understand until after it is implemented. The big falsehood of Prop 207 is that it equates land- use regulation with confiscation or that if you regulate land use to provide good planning, this is confiscation. That is the conceptual flaw with this proposition. If this ballot proposition passes, Staff will be recommending to Council to not approve or not to take action because the City will not have funding to pay claims. John Schell, Intergovernmental Affairs Director for Peoria, presented an overview of the background on the Proposition 207 and what triggered the interest in the effort. He noted that a zoning case in New London, Connecticut where private property was taken through eminent domain authority. New London conveyed the property to a developer for economic development use. Arizona is one of the strongest nationally on private property rights with laws and regulations relating to eminent domain and regulatory takings. Steve Kemp, City Attorney, explained three cases that are mentioned in the declarations and findings in Propositon 207 that resulted in mutually acceptable agreements and no condemnation took place. Mr. Kemp explained that local government authorities cannot use their eminent domain authority to convey property for economic development in Arizona. As part of condemnation, not only does a property owner generally negotiate with the city, but they receive a significant federal tax break and proceeds may be reinvested for three years without any payment of capital gains. Redevelopment law has been amended to make condemnation for purposes of redevelopment in terms of transferring it to another party very difficult. Many redevelopment districts do not even permit condemnation. It is not something that has to be permitted within the confines of the redevelopment law. These cases were used as justification for this ballot proposition. The other side of the story is that in each case the Courts provided a remedy and the people received that remedy. Mr. Schell stated that Staff was asked to explain what Peoria would have to do in terms of implementation if this were to pass. The only example that is available now is the example of Oregon that Mr. Ellis described. The net effect is $5 billion in claims against governments in Oregon. This effort has basically brought land-use planning to a halt. Mr. Schell described the funding source and the organizations put together by Mr. Howard Rich to fund this initiative in Arizona are Americans for Limited Government and Fund for Democracy. Both organizations are cited at the Secretary of State’s Web site as the organizations that are funding this initiative. Americans for Limited Government contributed $1.1 million and Fund for Democracy contributed $25,000 bringing a total contribution total of $1.142 million. Mr. Kemp explained the impacts on eminent domain: * Economic Development is not a public use for which property may be condemned. * Condemnation in Redevelopment areas must be evaluated on a parcel-by-parcel basis. * Property owner instead of being paid the fair market value of his house will now be paid the amount it cost to buy a dwelling of comparable size. * Property owner will be entitled to attorney fees on condemnations in Redevelopment areas, if City’s offer is not as great as value determined at court. Mr. Kemp advised that the Arizona Court of Appeals has already held that use of eminent domain to acquire property for transfer to another private party is not public use. Many Redevelopment areas created by cities specifically provide that eminent domain will not be used, such as Central Peoria Revitalization District. Almost all eminent domain cases in all jurisdictions result in agreed upon settlements between city and the property owner. In 17 years, Peoria has had one eminent domain case go to trial. Mr. Kemp addressed the impact of regulatory takings and the existing law as determined by U.S. Supreme Court: * A taking must involve loss of economic use of the whole property, not a portion of the property. * The property owner must go through all the governmental processes and get a final decision from the government prior to going to court. * There is no taking, if the burden caused by development of the property is roughly proportional with the requirements imposed by government. * The value of a taking is based on looking at the reasonable investment backed by expectations of the property owner, taking into account existing and future government regulations; zoning; natural constraints; adjacent property and other factors that would affect the value of the property. Mr. Kemp discussed how Proposition 207 changes current law: * Under Proposition 207, any reduction in value on any portion of the property resulting from government regulation results in compensation, even if the property is still usable for development. * No requirement for the property owner to go through the governmental process before filing a lawsuit. * No measurement of proportionality. If any governmental action results in a diminution in value, there is a right to compensation, even if the proposed development results in major costs to the citizens. * Value is determined by looking at the most likely price the property would be sold for, based on the uses it is capable of being used for, without regard for existing and future government regulations; zoning; adjacent property and other factors that would affect the value of the property. In response to questions from Council regarding the impact on governing hillside ordinances or master plans of trails, Mr. Kemp explained that each time Council acts in the zoning case or imposes requirements; Proposition 207 could invoke a right to compensation. Mr. Kemp outlined the types of Council actions that might be subject to compensation should Prop 207 pass: * City enacts regulations limiting noise, dust, sound and hours of sand and gravel operations. * City reduces the number of signs a commercial property owner may have on their property. * City enacts regulations requiring commercial uses to have larger buffers with residential areas to mitigate against noise and delivery impacts. * City reduces the number of lots that a developer may build to provide for additional open space along washes and river corridors. * City increases the number of handicapped parking spaces a commercial property must include. Mr. Kemp outlined potential impacts on Arizona Military Facilities. Protection of Arizona Military Facilities is the result of ongoing decisions by local government implementing provisions of State Law. Should Proposition 207 be enacted, each of these decisions will now be subject to claims for compensation. Types of decisions that could lead to claims for compensation to include: * Adding areas inside noise and safety contours and limiting development to commercial uses. * Adding additional areas to Territory within the vicinity of a Military Airport. * Establishing new noise and safety contours for new missions such as the Joint Strike Fighter. * Waiver of regulations by cities, towns and the county allowing development adjacent to Military Facilities that conflicts with their mission. Mr. Kemp advised that if cities, towns and counties waive the regulations, homes and other types of incompatible uses would be against the military base. Williams Air Force Base located in Mesa was used as an example. Mr. Kemp reported that the Oregon experience resulted in over $5 billion in land-use claims filed in a two-year period. None has been paid. In every single case where the case has gone to court, the state and local government have waived the regulation and allowed the development to proceed. There is no money to pay these. And just like in Arizona, these claims are not insured in Oregon. There is no insurance. The money comes out of the same part of local government revenues that police, fire, parks and other governmental services. Mr. Kemp provided examples of the number of claims filed in the State of Oregon. Scarce city revenues are used to hire staff to deal with this. Many Oregon cities hire planners to analyze their land use applications for Oregon’s Measure 37 issues. They hire lawyers to analyze applications for Measure 37 issues. The money comes from the same pot of money that the City is using to provide day-to-day central services. The City has a process for developers, neighborhoods and staff. The community knows the rules. They know that there will be negotiation and public hearings. They have the opportunity to come before the local governing body. They know that decisions will be made based on taking all of this input into account. Mr. Kemp outlined how Proposition 207 would affect Peoria: * City will not adopt new regulations to provide for open space protection; buffers between residential and commercial areas; landscape requirements and other regulations that improve our quality of life. * These claims are not covered by the City’s insurance. Money to pay for these claims comes right from the City’s general fund; the same dollars used to pay for police, fire, parks and other needed services. * Lots of lawsuits, since claimants can go right to court and never have to file an application with the City or attempt to resolve issues. * Almost all zoning cases are filed by developers—each case may result in Proposition 207 claims, therefore the City may choose not to zone, which will result in lost jobs, lost sales tax to pay for services and lost businesses to provide services to the community. * Based on Oregon’s experience there will be millions of dollars in claims. No claims were paid, but the regulations were waived. * Important Arizona Economic Resources such as our Military Facilities put at risk from development that interferes with their missions. In Maricopa County there are cities like Peoria with huge amounts of vacant undeveloped land - land that will be developed post Proposition 207. In Peoria, a large area in the planning area could become a source of claims under Proposition 207. Mr. Kemp advised that the Mayor has requested a City Attorney’s Office opinion of how Peoria should comply in terms of strategy should this proposition pass and the steps that the City would be using to comply with that. Vice Mayor Hunt thanked Mr. Kemp for his presentation. Reports from City Council: Councilmember Leone reminded the public to exercise their right to vote on November 7th, Election Day. Councilmember Leone reported that on October the 5th he attended a ribbon cutting at the Habitat for Humanity of the West Valley for their new office and retail store. The City appreciates Habitat choosing Peoria. On October 7th, Councilmember Leone attended the dedication of four habitat homes located in Peoria. All Peoria homes are sponsored by local churches and he welcomed the new residents to Peoria. Councilmember Leone attended the 100th anniversary celebration of the Peoria Central School Museum. Councilmember Leone noted that the Run for the Cure was a great event and fundraiser. This is the only way to cure breast cancer. Councilmember Hickson reported that he enjoyed a ride along with the Peoria Police Department in the northern part of the City. He noted the large area that Peoria Police need to cover and the excellent job the Police do. Councilmember Evans noted that no one was present to discuss the Consent Agenda for rezoning a parcel at 75th Avenue and Thunderbird Road. The Willow District will benefit from the addition of a half-acre lot put in at the corner of 75th Avenue and Thunderbird Road. Councilmember Evans described her ride along with the Fire Department a couple weeks ago. There were four different calls including the hook and ladder truck. She expressed her appreciation for what the firefighters do. Councilmember Dennis noted that there are 19 propositions on the November 7th ballot. She asked voters to thoughtfully review the written word and ask some good questions about them before they vote. Reports from the Mayor: None. ADJOURNMENT: Being no further business to come before the Council, the meeting was duly adjourned at 9:25 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 17th day of October, 2006. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 12th day of December, 2006. (Seal) ______________________________________________ Mary Jo Kief, City Clerk