PRESENT:

Paul Loomis, Mayor Al Kunisch, Vice Mayor K.C. Carter, Council Member Bill Garner, Council Member Barry Gillaspie, Council Member Salette Latas, Council Member

EXCUSED:

Paula Abbott, Council Member

Mayor Loomis led the audience in the Pledge of Allegiance.

Town Manager David Andrews reviewed the upcoming meetings and events.

Planning and Zoning Director Sarah More introduced Paul Popelka, the Town’s new Assistant Planning and Zoning Director.

Parks and Recreation Director Ainsley Legner reported that per Federal mandate, the pool’s drain covers have all been replaced.  She also reported that Town staff has converted the pool to a chlorine system which will save the Town approximately $30,000 annually in chemical costs.

Engineering Division Manager Jose Rodriguez updated the Council on the Oracle Road and La Canada widening projects.

Assistant Town Manager Jerene Watson reported that the Town’s Economic Stimulus projects would be submitted Thursday to the office of Congresswoman Gabrielle Giffords.

Communications Director Mary Davis thanked Council Member Carter and John Aube for their help on the Holiday Parade.  She also announced that she met with community representatives to begin the planning for the Town’s 35th anniversary celebration that will be held on April 17, 2009.

There being no objections, Mayor Loomis moved Item 6 forward to follow Item 3 on the agenda.

Art Segal, Oro Valley resident, commented on the status of the General Plan amendment regarding Arroyo Grande.  He thanked Council Members Gillaspie and Latas for their work on the planning for the Arroyo Grande.  He also commented on the proposed electrical substation in the area and stated that the Pima County Administrator has now recommended that the substation not be built.

Terry Parish, Oro Valley resident, encouraged the Council to look at the issues facing the Town.  He commented that the Council should set their priorities, look at what benefits the Town as a whole and then take positions that are in line with the Council’s goals.

PAUSE FOR PAWS

Tammy Barrack from Foundation for Animals in Risk (FAIR) introduced Terry, a one-year old terrier that will be available for adoption at the Oro Valley Pet Smart store.

CITIZEN PLANNING INSTITUTE GRADUATION:

Matt Michaels introduced the 2008 Citizen Planning Institute graduates.  Mayor Loomis and Council Member Carter presented the following with certificates:
Jill Anderson, Michael Blaker, Mike BeDell, Steve Fansler, James Gardner, Mike Gardner, Art Geiger, Phyllis Gracy, Tim Graves, Ed Hannon, Dick Honn, Jeanie Honn, Sandra Hoy-Johnson, Pat Kline, Sam MClung, Bill Peacock, Christina Pickering, Deanna Ruiz, Gene Wowk.  (Elana Kyrala-Fisher and Sue Novelli were not present to receive their certificates).

At the request of Council Member Carter, Mayor Loomis pulled Item F.

MOTION: A motion was made by Council Member Carter and seconded by Vice Mayor Kunisch to approve the Consent Agenda with the exception of Item F.

MOTION carried, 6-0.

A.	Minutes - 10/29/08; 11/12/08; 11/17/08

B.	Coyote Run Monthly Transit Operations Report - November 2008

C.	Economic Development Division Monthly Report - November 2008

D.	Building Safety Activity Report - November 2008

E.

Resolution (R)08 - 89 Authorizing the Execution of a Grant Agreement between the Town of Oro Valley and the Oversight Council on Driving or Operating Under the Influence Abatement Program administered by the Arizona Criminal Justice Commission for funding overtime for Personnel Services of the Oro Valley Police Department

F.	Appointment of Andrea Fowler, Zev Cywan, Matthew Moutafis and Jonas Hunter (GOVAC representative) to the Art Review Committee with terms effective January 1, 2009 to July 1, 2009 (PULLED FOR DISCUSSION)

MOTION: A motion was made by Council Member Carter and seconded by Council Member Garner to appoint Andrea Fowler, Zev Cywan and Matthew Moutafis to a six month term effective January 1, 2009 through July 1, 2009 and to not appoint Jonas Hunter (GOVAC representative) due to the fact that he is not an Oro Valley citizen.

MOTION carried, 6-0.

G.	OV12-98-01E Approval of a revision to the development plan for the Stone Canyon Swim and Fitness Center, located on the Stone Canyon Golf Course relating to the parking lot configuration

H.

OV12-04-30U Approval of an amended final plat involving a 114 acre shopping center known as The Oro Valley Marketplace, located within Rancho Vistoso Neighborhood 4 at the southwest corner of the Tangerine and Oracle Road intersection related to lot line adjustments, Parcel numbers 21920052M, 22004006F, and 22004008R

I.	Resolution No. (R)08-90 Authorizing and approving a new lease for the Oro Valley Police Department substation currently located at Mountain View Plaza

J.	Resolution No. (R)08-91 Amending the Town of Oro Valley Section 457 Retirement Savings Plan, ICMA-RC Plan #302538, to permit loans

K.	Update on the Pima Association of Governments (PAG) Region’s long-range transportation plan, called the 2040 Regional Transportation Plan (RTP)

Finance Director Stacey Lemos introduced Mr. Cory Arvizu, auditor, from Heinfeld, Meech and Company.

Mr. Arvizu reviewed the results of the Town’s audit for 2007/2008.  He reported that there were no reportable audit findings and that the Comprehensive Annual Financial Report (CAFR) has been prepared and filed.  He then thanked Town staff for their assistance.

MOTION: A motion was made by and seconded by to

MOTION carried, 6-0.

Finance Director Stacey Lemos reviewed a PowerPoint presentation regarding the 2008/09 financial status:
~ General Fund Projections: 
     - $27.9 million revenue
         - Local Sales Taxes down 8.8%
         - Eliminated Grant revenues not expected to receive
         - Building permits estimated at 200 vs. budgeted number of 250
         - Interest income on invested funds down 60.5%
     - $30.6 million expenditures projected 
        Reductions:    MOC debt services  $833,000
                            Sanofi Aventis        $360,000
                            Insurance Premiums $100,000
                            Vacancy savings     $153,000
                            Sales Tax Rebates  $248,000
        - Budgeted deficit for one-time expenditures of $1.7 million
        - Lehman Brothers investment loss of $232,000
  Recommendations to cover deficit:
      - Defer $500,000 transfer to Capital Asset Replacement Fund
      - Utilize $400,000 of pre-collected revenues from fiscal year 2007/08 commercial
         building permits

~ Highway Fund:
    - Revenues $5.2 million
    - Expenditures $5.4 million
    - Deficit $202,000
  Recommendations to cover deficit:
      - Transfer idle funds from Bed Tax Fund

~ Bed Tax Fund:
    - Revenues $1.4 million
    - Expenditures $0.7 million 
    - Surplus $682,000
  Recommendations for surplus:
      - Transfer idle funds to General and/or Highway Funds

~ Transit Fund:
     - Revenues $1.3 million
     - Expenditures $1.4 million
     - Deficit $73,000
   Recommendations to cover deficit:
    - Transfer idle funds from Bed Tax Fund
    - Coyote Run service level reduction
    - Draw down on fund balance

~ Five Year Forecast-General Fund Assumptions:
   Revenue
    - Oro Valley Marketplace in full year of operations in 2010
    - No renewal of 2% Utility Sales Tax: loss of $1.1 million in revenue
    - Declines in State Shared Revenues
    - Further declines in Development activity
    - Low interest rates on invested funds
   Expenditures
    - No COLA or merit for fiscal year 2010
    - 10% growth in benefit costs
   -  Continued funding for replacement of capital assets

Discussion followed regarding:
  - Administrative costs: Operating and Maintenance (O&M) costs, Professional Services
  - Maintaining Contingency Fund
  - Idle Bed Tax funds - O&M funds for Naranja Town Site (current balance $800,000 with year-end estimates at approximately $1.3 million)
  - Lehman Brothers bankruptcy/loss ($682,000 loss is allocated in total budget where funds were invested)
  - Pre-collected commercial building funds (identify funds prepaid in previous fiscal year for work to be done the following fiscal year - Multi-year payments)
  - Sales tax rebates estimated at $248,000
  - Categorize administrative costs
  - Security system costs (General Fund) Maintenance costs in I.T.
  - Transit Fund cash reserves (special revenue fund, carry forward due to a grant that was not expended)

Mayor Loomis opened the floor for public comment.

Bill Adler, Oro Valley resident, commented on the Town’s Contingency Fund and the need to increase revenues (extend the Utility Tax, increase Sales Tax) verses managing costs.

Art Segal, Oro Valley resident, had questions regarding the Utility Sales Tax ending, the loss of revenue, Oro Valley Marketplace sales tax rebates and the Bed Tax surplus.

Discussion followed regarding:
  ~ Vestar Economic Development Agreement (EDA) - Staff will verify current percentage of development and EDA's start time (development plan square footage vs. Certificate of Occupancy).
  ~ Utility Sales Tax - Finance and Bond Committee recommendation was for 2 years with a sunset clause due to projected sales tax revenues at that time due to new development. 
  ~ Look at new revenue sources.  Pay for services.
  ~ Bed tax revenues - $800,000 to help fund deficit in other funds.
  ~ Capital asset replacement funding and possible deferred projects.
  ~ Multi-year payments (get further information).

Mayor Loomis recessed the meeting at 7:25 p.m.  The meeting resumed at 7:35 p.m.

Aimee Ramsey, Transit Administrator, introduced Mr. Jim DeGrood, RTA Manager of Transportation Services.  She then reviewed a PowerPoint presentation highlighting the following:
~  Park and Ride
    - Begin construction January 2009
    - Projected completion February 2009
~ Regional Para Transit Plan:
  - Primary goals
      - Outline goals, issues and opportunities of para-transit regionalization
      - Increase efficiency through consolidation or coordination
~ Coyote Run statistics:
    - Only directly operated transit service in the region
    - Only service serving seniors
    - Provided 16,908 rides
    - Increased ridership by 35 percent in the last five years
    - Has 1,212 registered clients (90 are ADA certified)
~ New Circulator Services
     - RTA planning to operate service and contract with a third party provider
     - Request for Proposal will be issued after completion of the Regional Para-Transit Plan
     - Service may begin in May 2009
~ RTA and Transit Services
    - RTA evaluating options pertaining to the possibility of taking over all transit services (in exploratory stages only)
~ Summary:
    - Oro Valley is on track with providing Park and Ride elements
    - Regional ADA Para-Transit Plan should be completed in February 2009
    - Neighborhood Circulators may tentatively start up in May 2009

Discussion followed regarding:
 ~ Coyote Run’s excellent services
 ~ RTA looking at building a seamless transit system.  The intent is not to take over services.  All entities must be willing and it will have to be a win-win situation.
 ~ Purpose of RTA is to expand transportation offerings in the region
  - Currently three Park and Ride lots in the region
  - Future multi-modal transportation planning

Planning and Zoning Administrator Sarah More reviewed the proposed changes to the Sign Code that have been mandated by Arizona legislation.  She explained that the proposed amendments to the Sign Code would allow human signs with the following suggested restrictions: 
  ~ Time - Daylight hours or 8:00 a.m. to 5:00 p.m. whichever is the shorter time period
  ~ Place (addresses safety issues) -
     - At least 10 feet from a paved roadway surface
     - 20 feet from another human sign
     - No more than 2 human signs per street corner
     - May not be located in a construction zone
     - May not obstruct visibility required for drivers and cyclists
  ~ Manner -
     - Permits and fees will be required
     - Signs must be held relatively still
     - No more than 2 human signs per business
     - Only one human sign permit will be issued per business per 90 days

Ms. More further explained that staff has recommended that the temporary sign zones be increased from 300 to 500 square feet.  However, the Planning and Zoning Commission has recommended against the increase as they felt that the current sign zones were adequate.  She further stated that staff has provided a legally defensible Code amendment that meets the State mandate.

Discussion followed regarding:
  ~ Clothing/costume restrictions (State regulates what is appropriate, First Amendment rights.) 
  ~ 10 foot limit from edge of road.  (On major streets there is 10-12 feet of right of way.  For safety reasons, staff recommends 10 feet).
  ~ Enforcement issues. 
  ~ Current Sign Code specifically prohibits human signs.  State mandate is requiring allowing human signs by January 2009. 
  ~ Possible restrictions on distance of human signs from the store. 
  ~ Return to Planning Commission/address exemptions for schools, charitable organizations.
  ~ Two signs per street corner.  Town must keep track of permit issuance.
  ~ Staff recommends adoption of ordinance so restrictions are in place.  (January deadline for approval.  If restrictions are not in place, human signs would have to be allowed with no restrictions.  Bring back for amendments later if necessary).

Mayor Loomis opened the public hearing.  There being no speakers, the public hearing was closed.

MOTION: A motion was made by Council Member Latas and seconded by Vice Mayor Kunisch to approve Ordinance (O)08-25, OV7-08-08, amendments to the Oro Valley Zoning Code Revised Chapter 28 with the exception to exclude non-commercial uses and to further direct staff to go back to the Planning and Zoning Commission with the task of identifying "reasonable distance" for human signs from the sponsoring business and to investigate possible fines and/or action for the destruction or removal of signs and to also revisit the A-frame signage restriction.

MOTION carried, 6-0.

Assistant Town Manager Jerene Watson reported that the Arizona Capitol Centennial Committee has requested that Arizona cities and towns sponsor the renovation of the State Capitol.  She explained that their goal is to match the State Legislature’s appropriation of $450,000.  The requested amount from Oro Valley is $3,000.

Council discussed and expressed concerns regarding:
  ~ Would like a guarantee from the State that they would not take away State-shared revenues.
  ~ Vote "no" on principle as State has billed the Town for over $300,000.
  ~ Recipient of funds is the Centennial Committee.  Significant separation between this project and the State Legislature.  May also help provide direction when the Town has its Centennial.
  ~ Town already has a significant Centennial project (Steam Pump Ranch). Further, this request should go through the Community Funding request cycle.

MOTION: A motion was made by Vice Mayor Kunisch and seconded by Mayor Loomis to authorize $3000 in Contingency Funds for the purpose of the Arizona State Centennial Capitol Project.

MOTION failed, 2-4 with Council Member Carter, Council Member Garner, Council Member Gillaspie, and Council Member Latas opposed.

Council Member Latas - Discussion and/or possible action regarding animal control licensing fees.  Seconded by Council Member Garner.

Council Member Gillaspie - Formulate a working committee within two months to improve the Citizen Planning Institute (CPI) classes.  Seconded by Council Member Carter.

MOTION: A motion was made by Council Member Carter and seconded by Vice Mayor Kunisch to adjourn at 8:30 p.m.   
 

MOTION carried, 6-0.

Prepared by:


Roxana Garrity, Deputy Town Clerk