PRESENT:

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

MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Abbott to go into Executive Session at 5:31 p.m. for the following purpose:
Pursuant to ARS 38-431.03 regarding a legal update from the Town Attorney

Mayor Loomis announced that in addition to the Town Council, the Town Manager, the Assistant Town Manager, the Town Attorney and the Town Clerk, Civil Attorney Lexa Mack would also be present in Executive Session.

MOTION carried, 7-0.

MOTION: A motion was made by Council Member Carter and seconded by Vice Mayor Kunisch to go out of Executive Session at 6:37 p.m.

MOTION carried, 7-0.

PRESENT:

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

Mayor Loomis led the audience in the Pledge of Allegiance.

Town Manager David Andrews reviewed the upcoming meetings and events.

Council Member Latas reported that she had the opportunity to attend two informational conferences over the past two weeks: the annual conference of the Arizona Water Resources Research Center which she attended with Council Member Gillaspie and the Southern Arizona Solar Energy Development Conference which she attended with Mayor Loomis.

Town Engineer Craig Civalier reported that the reorganization of Public Works has been put into effect and staff will begin to concentrate more heavily on road maintenance.

Water Utility Director Philip Saletta reported that the Water Utility is now delivering reclaimed water to the north Hilton Golf Course and they will have the south golf course on line by the end of July.

Parks & Recreation Director Ainsley Reeder-Legner reported that the Municipal Pool has been closed since Sunday due to mechanical problems related to the auto backwash.  She stated that staff hopes to have the pool open by July 4th.

Special Projects Coordinator Scott Nelson reported that the Town took over Steam Pump Ranch as of May 30th.  He stated that they have had the site security plan in effect since April.  He further stated that the site is being cleaned up and it is starting to transform.   He thanked the Police Department, the Parks and Recreation Department, the Public Works Department and the Historic Preservation Commission for their time and efforts spent on the site.

Communications Administrator Mary Davis reminded the public that on July 4th, the Town will have an information table set up at the park for the citizens to send messages on banners to the U.S. troops.  She reported that there would be information available on the Naranja Town Site bond election.  Ms. Davis also reported that the Naranja Town Site bond election information would be made available at the July 12th Farmers Market.

Chief of Police Danny Sharp announced that 15 students graduated from the Teen Academy at a ceremony earlier this evening.

Pat Kinsman, Oro Valley resident, stated that she attended a Planning and Zoning meeting regarding future development of the State Land project known as Arroyo Grande.  She reviewed points made at the meeting from representatives from the Coalition for the Sonoran Desert and suggested that the Town stop spending money and staff time on annexation until the outcome of the upcoming bond election is learned and that the Town channel its efforts into programs designed to protect open space.

Kathy Pastryk, Oro Valley resident, commented on a possible cost benefit analysis for the Arroyo Grande project, questioned benefits, referenced the State Lands Initiative and stressed protection of the desert and water resources.

Art Segal, Oro Valley resident, referenced the Planning and Zoning hearing regarding Arroyo Grande held on Tuesday, July 1st.  He suggested that the Town pay attention to Ms. Campbell’s comments regarding protection of sensitive areas.

Lyra Done, Oro Valley resident, commented that she felt that there was a lack of understanding expressed by members of the community regarding the Board of Adjustment (BOA) and possible control by developers.  She explained that development plans are heard by the Planning & Zoning Commission and the Development Review Board.  She stated that as a 4-year member of the BOA, she could remember very few instances when a developer came before the Board to request a variance as the majority of the cases were for individual property owners.

At the request of Council, Items A and D were pulled for discussion.

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

MOTION carried, 7-0.

A.	Minutes - May 29, June 4 & 11, 2008 (PULLED FOR DISCUSSION)

MOTION: A motion was made by Council Member Latas and seconded by Council Member Abbott to approve the minutes as amended.

MOTION carried, 7-0.

B.	Coyote Run Transit Report - May 2008

C.	Police Report - May 2008

D.

Resolution No. (R)08- 53 Authorizing the execution of the Financial Participation Agreement between the Town of Oro Valley and EC Tenant Corp., lessee-operator of the El Conquistador Country Club (the "Country Club"), authorizing the expenditure of funds, delegating authority to the Town Engineer and declaring an emergency to exist to reconstruct the Fourth Fairway of the El Conquistador Course (PULLED FOR DISCUSSION)

Discussion followed regarding:
 ~ The Town paying for the reconstruction/re-design of the golf course.
 ~ The Town could be named as the responsible party as the widening of La Canada places the roadway closer to the golf course.
~ Alternatives were to either reconfigure the golf course or place large screening along the road.
~ The Town opted to redesign the fourth fairway to protect cars from balls. (This would be less costly than the screening in the long run). 
~ The Town and the El Conquistador Country Club shared in the cost of the redesign through a Memorandum of Understanding (MOU).

Mayor Loomis opened the floor for public comment.

Bill Adler, Oro Valley resident, commented that the problem of golf ball intrusion was created by the original design of the golf course.  He stated that the widening of the roadway has not helped but the placement of a fairway along a roadway is the initiating factor.  He stated that using tax dollars to redesign a golf course that was poorly designed in the first place was not warranted. 

MOTION: A motion was made by Council Member Carter and seconded by Vice Mayor Kunisch to approve Resolution (R)08-53.

MOTION carried, 4-3 with Council Member Abbott, Council Member Garner, and Council Member Latas opposed.

MOTION: A motion was made by Council Member Carter and seconded by Council Member Abbott to continue Item 2 and put it in on an agenda after the Council retreat is held (sometime in August or September). 

MOTION carried, 7-0.

Water Utility Director Philip Saletta reviewed a PowerPoint presentation and highlighted the following:
~ Steam Pump Ranch Master Plan was approved by Council on May 21, 2008.
~ The Master Plan included a proposed well site as part of the build-out phase.
~ The Oro Valley Water Utility (OVWU) prefers that the well site be included prior to the opening phase.
~ OVWU will build facility to meet the architectural and historical aspects of the site.
~ OVWU will provide noise abatement.
~ OVWU will share in costs for infrastructure, roadwork, access and land.

Mr. Saletta further reviewed proposed water well sites, high production zones and addressed issues with several of the current wells.  He explained that placing a well at Steam Pump Ranch would help expand the Town’s sphere of water production.  He also reviewed possible security walls, noise abatement for pumps and landscaping of security walls.

In response to a request from Vice Mayor Kunisch, Bill Adler, Oro Valley resident and member of the Steam Pump Ranch Master Plan Task Force, explained that two locations for the proposed well site were considered.  He explained that the Task Force recommend placement in the "panhandle" as the most desired location.  He further explained that the timing of the well installation was discussed but it was suggested that it be placed into the second phase as the Water Utility staff had not noted that it was a necessity at this time.

In response to questions from the Council, Mr. Saletta presented the following information:
 ~ Total space requirement for a new well would be about one quarter of an acre. 
 ~ Depth would be approximately 800 feet.
 ~ Depth of original well is unknown but old agricultural wells did not penetrate the aquifer so it was probably less than 600 feet.
 ~ Access road to the well. 
 ~ Town’s two wells (Wells C & D) on east side of Oracle Road would not be abandoned as they are still good water producers.  Once the production levels are reduced, the cascading problems in the wells would be alleviated (pumps and motors would be pulled and resized if necessary to get optimum level of production). 
 ~ New well would be put into the 2009/2010 budget and OVWU would like to have it on line by 2010. 
 ~ Currently do not pay rent for any water facilities.
 ~ Need to ensure that the proposed new well would not interfere with other Town wells and the well located at the nursery located across Oracle Road).  Also, need to stay as close to the "sweet spot" as possible.
 ~ C-9 well on Pusch View Lane will be on line by fall of the current year.

MOTION: A motion was made by Council Member Carter and seconded by Vice Mayor Kunisch to direct the Water Utility to move forward with the planning process for the well at Steam Pump Ranch.

MOTION carried, 7-0.

Mayor Loomis recessed the meeting at 8:10 p.m. The meeting resumed at 8:20 p.m.

Special Projects Coordinator Scott Nelson reviewed the annexation request for Area O and stated that this request was in conformance with the Town’s annexation policy and General Plan policy.  He reported that this annexation was requested by the property owners and that staff recommends consideration of this annexation request.

Discussion followed regarding the previous request for annexation of the entire area, additional road and water service would not be supplied unless the property owners install water lines and turn them over to the Water Utility and notification requirements to surrounding residents.

MOTION: A motion was made by Council Member Gillaspie and seconded by Council Member Latas to grant the Town Manager authority to initiate filing of an annexation map for approximately 10 acres of unincorporated territory located south of Stone Canyon and north of La Cholla Airpark, contiguous to the current Town limits and in the annexation process required by State Law, that the Town of Oro Valley expand its notification area to include the property owners within the "peninsula" area and that the La Cholla Airpark Corporation also be notified of the proposed annexation.

MOTION carried, 7-0.

Special Projects Coordinator Scott Nelson Special Projects Coordinator Scott Nelson reviewed the annexation request for Area P and stated that this request was in conformance with the Town’s annexation policy and General Plan policy.  He reported that this annexation was requested by the property owners and that staff recommends consideration of this annexation request. He further explained that this property is a part of the Stone Canyon 9 General Plan amendment.

MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Gillaspie to grant the Town Manager authority to initiate filing of an annexation map for approximately 10 acres of unincorporated territory located south of Stone Canyon and north of La Cholla Airpark, contiguous to the current Town limits and in the annexation process required by State Law, that the Town of Oro Valley expand its notification area to include the property owners within the "peninsula" area and that the La Cholla Airpark Corporation also be notified of the proposed annexation.

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

Council Member Abbott was opposed due to concerns regarding the flight path from La Cholla Airpark and the future density of the surrounding properties. 

Finance Director Stacey Lemos reviewed the tentative budget as presented to the Town Council on June 18th.  She then reported that the State’s budget cuts would decrease the Town’s Highway User Revenue Funds (HURF) allocations by approximately $200,000; therefore, Town staff is recommending that road surface treatments be reduced by that amount to balance the budget.  She further explained that staff is waiting on clarification on the required local contribution to the State’s budget as cities and towns may be responsible for $17 million.  She stated that there has been no direction from the State as to the individual contributions or how they would be provided.

Mayor Loomis opened the floor for public comment.

Bill Adler, Oro Valley resident, objected to the Town donating tax payer money to private organizations.  He also commented that the Town does not need a Risk Manager because insurance providers are capable of providing the Town with programs, etc.  He further expressed concerns regarding the proposed merit pay and stated that this increase has more to do with contributions to retirement pay.  He suggested giving bonuses to staff instead of a merit increase. 

Art Segal, Oro Valley resident, endorsed Mr. Adler’s comments.  He then stated that the Council voted earlier tonight to give a private enterprise $420,000 (financial participation agreement with El Conquistador Country Club) which he felt would fund five new Town employees.  He also agreed that the Town should not give away taxpayer money to private organizations.

Tony Bruno, Community Food Bank of Tucson, explained that as a non-profit group, the Food Bank works under the auspice of the Federal Government’s Emergency Food and Shelter program to provide services to citizens.  He stated that savings to taxpayers are huge (i.e. Seniors who are well fed have less health issues, children who are well fed have better early brain development).  He explained that the Food Bank partners with communities and he saw this donation as an investment to the community and how it serves its people.

Discussion followed regarding:
 ~ 1.5% Cost of Living Adjustment (COLA).
 ~ The proposed 4% merit is added to employees base pay and is subject to retirement calculations. 
 ~ Funding for the golf course improvements comes from the Pima Association of Governments (PAG) Transportation Improvement Program.  Monies to widen La Canada Drive are PAG Regional Highway User Revenue Funds (HURF).  No money from the Town’s Highway Fund is going into this project. 
 ~ If the Town installed golf course screening, the cost would be $500,000 and would need replacement every 5 years.  In addition, there would be maintenance costs.  (Town is saving $80,000 by reconstructing the golf course fairway.)
 ~ Taxpayers are paying indirectly because the monies being used are HURF funds.  (HURF monies are being cut by state and the $420,000 could have been used to support other roadway projects).
 ~ Costs of litigation and loss of revenue to the Town for basically a "wash of $200,000" would not be worth the Town’s time.

MOTION: A motion was made by and seconded by to

Discussion followed regarding:
 ~ Funding for the Pima Council on Aging.
 ~ GOVAC in-kind services are included in the proposed $120,000.
 ~ Proposed withdrawal of NPCCCs funding, their Political Action Committee (PAC).
 ~ Metropolitan Tucson Convention and Visitors Bureau (MTCVB) funding and their 3 year contract with the Town.
 ~ Oro Valley Community Foundation (OVCF) funding.

MOTION carried, 5-2 with Mayor Loomis and Vice Mayor Kunisch opposed.

MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Latas to approve the following new full-time employees (FTE): Assistant Planning and Zoning Director, Court Clerk, Meter Reader Supervisor and Full Time Office Assistant (currently .5 FTE and FTE would be offset by elimination of the .5 FTE Planning Intern position).

Discussion followed regarding:
 ~ Safety & Risk Manager position.
 ~ At mid-year budget review - look at the Safety & Risk Manager position and a possible increase in the COLA from 1.5% to 2.5%.

MOTION carried, 6-1 with Mayor Loomis opposed.

Mayor Loomis was opposed as he felt that the Safety & Risk Manager was necessary and the position was included in the balanced budget as presented by staff.

Further discussion followed regarding COLAs, merits, employee benefits, bonuses and remaining competitive with surrounding entities.

Council Member Abbott (seconded by Council Member Garner) - Update on Vestar development as to compliance rooftop shielding issues.

MOTION: A motion was made by Council Member Carter and seconded by Council Member Latas to adjourn at 10:05 p.m. 

MOTION carried, 7-0.