PRESENT:

Paul Loomis, Mayor Al Kunisch, Vice Mayor Paula Abbott, Council Member K.C. Carter, Council Member Helen Dankwerth, Council Member Barry Gillaspie, Council Member Terry Parish, Council Member

(Council Member Abbott arrived at 6:10 p.m.)

MOTION: A motion was made by Council Member Dankwerth and seconded by Council Member Parish to go into Executive Session at 6:01 p.m. for the following purpose:
Pursuant to ARS 38-431.03(A)(3), discussion and consultation for legal advice and (A)(4), discussion and consultation with legal counsel regarding undergrounding of TEP lines within the boundaries of the Town of Oro Valley

MOTION carried, 5-1 with Council Member Gillaspie opposed.

MOTION: A motion was made by Council Member Carter and seconded by Vice Mayor Kunisch to go out of Executive Session at 7:00 p.m.

MOTION carried, 7-0.

PRESENT:

Paul Loomis, Mayor Al Kunisch, Vice Mayor Paula Abbott, Council Member K.C. Carter, Council Member Helen Dankwerth, Council Member Barry Gillaspie, Council Member Terry Parish, Council Member

Mayor Loomis led the audience in the Pledge of Allegiance.

Chief of Police Danny Sharp reviewed the upcoming meetings and events.

Council Member Gillaspie reported that he and Town Manager David Andrews, Communications Administrator Mary Davis, Special Projects Coordinator Scott Nelson, Planning and Zoning Administrator Sarah More and Planning and Zoning Commissioner Bill Adler met with representatives from Catalina regarding the Arroyo Grande project to help address their concerns and questions.

Planning and Zoning Director Sarah More introduced Matt Michels, the Town’s Acting Economic Development Director.  She stated that Mr. Michels has been with the Town since May, 2006 working in the Planning and Zoning Department and she wished him well in his new capacity with the Town.

Town Engineer Craig Civalier introduced the Town’s new Transit Service Administrator, Aimee Ramsey.  He also announced that there would be an Open House on Thursday, February 7th from 6:00 to 8:00 p.m. in the Council Chambers regarding the upcoming intersection improvements at Glover/La Cholla.

Town Clerk Kathryn Cuvelier reminded everyone that the Town’s Primary Election is on March 11th.  She stated that the Town has 26,000 registered voters and ballots will be mailed out starting February 7th.

Mayor Loomis moved Item 4 before Item 2.

MOTION: A motion was made by Council Member Parish and seconded by Vice Mayor Kunisch to approve the Consent Agenda as presented.

A.	Minutes - 1/09/08

B.	Building Safety Activity Report - December 2007

C.	Coyote Run Transit Report - December 2007

D.	Police Report - December 2007

E.

Resolution No. (R)08- 03 Authorization of the execution of an Intergovernmental Agreement between the City of Tucson and the Town of Oro Valley to utilize Federal Transit Administration (FTA) funds to purchase one (1) replacement van for Oro Valley’s Transit Service for Elderly and Disabled Residents - Coyote Run

MOTION carried, 7-0.

Finance Director Stacey Lemos reviewed a PowerPoint presentation regarding Ballot Question options for the proposed November 2008 Bond Election.  She explained that staff has consulted with Mr. Keith Hoskins from the law firm of Gust Rosenfeld, to discuss ballot questions.  She then reviewed ballot format options:
~ Single Ballot Question options:
   - Option A - $48.6 million bond authorization - Uses: Earthwork, infrastructure, outdoor recreation, ball fields, courts, parking.
   - Option B - $80 million authorization - Includes elements in Option A with a lap pool and a downsized community center/theater facility. (Would need to further revise concept plan for scaled down center/theater if this option is selected).
   - Option C - $154 million authorization- Includes all elements included in the Master Plan including a 147,000 sq. ft. community center, aquatics center, music pavilion.
~ Property tax impacts (based on a $300,000 market value home):
   - Option A - 28 cents or $5.73 per month (25 year bond, single issue).
   - Option B - 35 cents or $7.43 per month (30 year term bonds, spread issue dates).
   - Option C - 60 cents or $12.75 per month (25 year bonds, 3 separate bond issues).
~ Multiple ballot question format:
   - Option D - Needs to be formatted so each individual question can stand alone and that determination of whether a majority of voters voted for or against the question can be made.  
  - Question 1 - $48.6 million (Must pass as includes all infrastructure and will be clearly identified on the ballot).
  - Question 2 - $69 million includes community center with 500 seat theater
  - Question 3 - $6.9 million includes aquatics center
  - Question 4 - $29.5 million includes music pavilion

Regarding Option D, Mr. Keith Hoskins, Bond Counsel from Gust Rosenfeld, explained that each question needs to stand alone so that from a legal standpoint, it can be determined whether or not it passed.  He stated that it would also need to be very clear to the voters that Option 1 would have to pass in order to build any of the other options. 

Further discussion followed regarding the different options as presented, operating and maintenance (O&M) costs, the potential for other sales taxes, donations, property taxes, etc. that could be used as funding sources, using the information pamphlet to explain to the voters any possible future items such as O&M costs or future taxing and the order of building each specific option would be decisions made by the Council.

Mayor Loomis opened the floor for public comment.

The following people spoke in favor of the Naranja Town Site and its completion citing the need for recreational and art venues for the citizens of the Town and the surrounding area:
Mary Snider, Oro Valley resident
Bob Sumple, Oro Valley resident
Al Cook, Oro Valley resident, representing the Greater Oro Valley Arts Council (GOVAC)
Dick Johnson, Oro Valley resident
Bob Weede, Oro Valley resident
Tom Moser, Oro Valley resident
Matt Bouton, non Oro Valley resident
Sam Nettling, non Oro Valley resident
Bill Nettling, non Oro Valley resident
Gary Henry, non Oro Valley resident
Stephanie Nickles, Oro Valley resident 

Bill Adler, Oro Valley resident, acknowledged that he is in favor of the park but stated there is a long list of other needs for taxpayers.  He stated that he is not in favor of additional taxes to fund parks when other needs are desired.

In response to a question from Council Member Abbott regarding the ballot question and a possible recession, Town Clerk Kathryn Cuvelier stated that the Town would need to inform Pima County Elections by the end of July of any ballot language changes.

Council Member Parish commented that the citizens can use their right to vote and tell the Council what they want to use as a funding mechanism.  However, if a recession/depression would happen, the Council would not authorize the issuance of the bonds.  He further stated that there is not a current plan to build the park all at once because of the scope of project and the bonding process is planned for three phases.

MOTION: A motion was made by Council Member Abbott and seconded by Council Member Dankwerth to move forward on Option A, $48.6 million bond authorization and direct staff to prepare the formal Call of Election for November 2008.

Discussion followed regarding giving citizens the right to decide what they want, citizens have stated that they will not support a property tax, Community Survey results show that citizens want more fields not art centers, the future of Oro Valley is in the balance and people feel deeply about all aspects, must be transparent and accountable about paying for the operating costs in the future, must have vision for the community and give the citizens the option, charging user fees to those that do not live in Oro Valley, possibly including the stage and band shell to bring up the costs up to $52 million, make decisions on what monies we have today as we can not predict the future, letting the voters decide and place the $150 million project on the ballot as this does not lock the Town into a property tax or O&M fees that we can not afford, looking to the future but starting small and then move forward.

MOTION: A motion was made by Council Member Dankwerth to amend the motion to add $2.5 or $3.6 for the addition of a band shell. Motion failed due to lack of second.

MOTION carried, 5-2 with Council Member Carter and Council Member Parish opposed.

MOTION: A motion was made by and seconded by to

MOTION failed, 3-4 with Vice Mayor Kunisch, Council Member Abbott, Council Member Carter, and Council Member Dankwerth opposed.

Mayor Loomis recessed the meeting at 9:08 p.m. The meeting resumed at 9:15 p.m.

Planning and Zoning Director Sarah More explained that the purpose of this amendment is to align the Planned Area Development (PAD) with changes in the General Plan as adopted last year.  She stated that the Planning and Zoning Commission has recommended approval of the PAD amendment subject to two changes which have been included in Exhibit A.

Paul Oland, The WLB Group representing the applicants Vistoso Partners, Venture West and Ventana Medical Systems, stated that they agree to the conditions as listed in Exhibit A.  Mr. Oland then reviewed an overhead map of Rancho Vistoso Neighborhood 3 depicting the existing land uses.  Mr. Oland reviewed the proposed open space trades, riparian habitat, reconfiguration of the recreation area, a quantitative summary representing the RECON Xeroriparian Habitat, Riparian Habitat Overlay District, 25% Slope areas, Recreation Area and CPI Parcel Size.  He then reviewed the visual impacts from/to Tangerine Road and Oracle Road, grading design and the linear recreation area.

Discussion followed regarding restricting Sexually Oriented Businesses (add this restriction to Part 1, Land Use #1), adding feasibility language to Conditions #11 and 12, skilled nursing facilities near the hospital, encroachment into the 25% slopes, parking requirements, connectivity to the linear park, trails and Big Wash, utilizing area for bio/high tech businesses, regional shopping area near this area, and LEED certified buildings.

Mayor Loomis opened the public hearing.

Bill Adler, Oro Valley resident, commented that the applicant wants the Council to trust that the developers will incorporate changes over time.  He stated that this is a zoning issue and the Town needs to provide criteria that provide/allow relief.  He said that we should be talking about entitlements and commitments, not intent. 

Mayor Loomis closed the public hearing.

MOTION: A motion was made by Council Member Abbott and seconded by Council Member Gillaspie to continue this item and take it back to the Planning and Zoning Commission to get more specifics on the trails and incorporating at least the minimum LEED standards.

Discussion followed regarding Development Impact Fees, Commercial area verses Campus Park Industrial, 25% slope encroachment, solar issues, parking garages, skilled nursing facilities, linear park trails, and the fact that the Zoning Code is out of date.

Neal Simon, Venture West, stated that they are trying to be supportive of institutions already located in Innovation Park and that Northwest Hospital Oro Valley plans to expand to a regional hospital in the future. He stated that a rehabilitation or assisted living facility would enable the hospital to increase their mission.  Mr. Simon further explained that they have worked with Planning and Zoning and the Council and the original retail area was reduced by 7 acres and moved to Oracle Road. He commented that they will do this project right and that the conditions as presented, address issues brought forward by the Council.  He stated that the Planning and Zoning Commission recommended this amendment by a vote of 6 - 1, and he does not see a need to send it back to them.

MOTION failed, 2-5 with Mayor Loomis, Vice Mayor Kunisch, Council Member Carter, Council Member Dankwerth, and Council Member Parish opposed.

MOTION: A motion was made by and seconded by to

MOTION carried, 5-2 with Council Member Abbott and Council Member Gillaspie opposed.

Council Member Gillaspie opposed the motion as he felt that this was bad planningnd sets another precedent.  He stated that this was a rezoing when you get down to the details, and the Town is treating it like a General Plan amendment.  He stated that we are basically giving away more potential CPI land.  He said that he trusted the developer/owner but he may sell the property.  He further stated that the property with the State is far off and it is critical to the Town.

Council Member Abbott opposed the motion for the same reasons as stated by Council Member Gillaspie.  She further stated that she felt that this may be a safety issue and was concerned with the nursing facilities being placed along Big Wash.

Mayor Loomis recessed the meeting at 10:32 p.m.  The meeting resumed at 10:37 p.m.

William Prokes, representing Rockridge Apartments, reviewed the Master Sign program proposal and highlighted the following:
~ Identification signs on Oracle Road and the Pusch View Lane entry.
~ Use and size of a directional sign on the Oracle Road entry driveway to alleviate confusion due to a shared driveway. 
~ Proposed sign placements, designs and sizes (desert colors would be incorporated). 

Planning and Zoning Administrator Sarah More reported that the Development Review Board (DRB) recommended approval of the Master Sign Program for Rockridge Apartments.  She also stated that the DRB addressed safety factors when considering the signage.  Ms. More explained that the illumination of the signage was addressed and must be in conformance with the Town’s Sign Code and Lighting Standards.

Discussion followed regarding:
~ Signage is excessive, need to minimize number and size of signs.
~ Sign Code minimizes the amount of signs in the Town.  Do not need leasing signage on Oracle Road.
~ Important to consider that Oracle Road is going to be widened.  Need to set sign back a little further.

MOTION: A motion was made by Council Member Parish and seconded by Council Member Dankwerth to continue this item until staff has time to review the Sign Program further with the applicant.

MOTION carried, 7-0.

Town Attorney Tobin Rosen asked for direction from Council as to whether the Council desires that a motion be filed to intervene in Tucson Electric Power's (TEP) pending rate case before the Arizona Corporation Commission.

Larry Lucero, Manager of Government Relations for TEP, reviewed the background of the rate case as filed by Tucson Electric Power Company before the Arizona Corporation Commission.  He then stated that this action might be an unnecessary aspect of the Council’s activities due to the expense and time that might be necessary due to the analysis that must be done.  He stated that he would continue to work with staff to complete infrastructure needs in the Town.

Council Member Parish commented that the Town needs to intervene in this rate case.  He said that this utility provider is profiting in the community and is not living up to its responsibilities to follow the Code. 

MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Abbott to not direct the Town Attorney to file a motion to intervene on behalf of the Town of Oro Valley in the pending rate case filed by Tucson Electric Power Company before the Arizona Corporation Commission.

AMENDMENT TO THE MOTION: Mayor Loomis requested that the motion be amended to include direction to the Town Attorney to provide a letter of testimony stating that the rate increase does not provide for any undergrounding needs and the Town feels that the rate increase as presented is not complete since they have not provided any funding to meet the Town’s Code.  Vice Mayor Kunisch and Council Member Abbott accepted the amendment.

MOTION carried, 6-1 with Council Member Parish opposed.

Council Member Abbott asked that staff review the Rancho Vistoso Planned Area Development (PAD) with the Planning and Zoning Commission to initiate an update to the plan.  Council Member Gillaspie seconded the request.

MOTION: A motion was made by Council Member Carter and seconded by Council Member Parish to adjourn at 11:25 p.m.

MOTION carried, 7-0.