PRESENT:

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

It was noted that Council Member Gillaspie would join the Executive Session by telephone until he arrived.

MOTION: A motion was made by Council Member Gillaspie and seconded by Council Member Kunisch to go out of Executive Session at 5:45 p.m.

MOTION carried, 7-0.

PRESENT:

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

Oro Valley resident Richard Tracy stated that regarding fire safety standards, he was opposed to the rumor that the standards would be changed. He requested personal notification should the item come forward in the future.

Pause for Paws
Lane Davidson of the Foundation for Animals In Risk (FAIR) presented a 10 week old kitten named Pancake. She stated that the adoption fee of $99 included sterilization, microchip and vaccination.

Plaque of Appreciation presented to General John Wickham US Army (Retired) for his service as Oro Valley’s representative to Regional Transportation Authority Citizen’s Advisory Committee and the Committee on Accountability for Regional Transportation from 2005 - 2008

Plaque of Appreciation presented to Donna Aversa for her service as Oro Valley’s representative to the Tucson-Pima Bicycle Advisory Committee from December 2005 - December 2008

Plaques of Appreciation presented to Bart Schannep for his service on the Board of Adjustment from November 2001 - December 2008 and Colleen Kessler for her service on the Board of Adjustment from June 2002 - December 2008

Mayor Loomis presented a Plaques of Appreciation to the following citizens and thanked them for their service:

    General John Wickham               Donna Aversa
    Bart Schannep                         Colleen Kessler

Council Members pulled items A, H and J

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

MOTION carried, 7-0.

A.	Minutes - January 21, 2009

Item A

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

MOTION carried, 7-0.

B.	Building Safety Activity Report - January 2009

Item B

C.	Police Department Monthly Report - January 2009

Item C

D.	Mayor & Council Trip Reports - February 2009

Item D

E.	Resolution No. (R) 09-13 Authorizing the Public Works Department to apply for a grant from the Arizona Department of Transportation for funding of vehicles for Coyote Run

Item E

F.	OV12-06-23 Approval of a final plat for a ten (10) lot subdivision known as the "Enclave at Desert Sky", located at 9797 N. Desert Sky Road

Item F

G.	Approval of request by Senator Al Melvin to use the Town Council Chambers for the purpose of holding a public meeting on Saturday, March 7, 2009 from 1:30 p.m. to 3:00 p.m.

Item G

H.	Appointment of Public Advisory Committee (PAC) Members and Acceptance of the Technical Advisory Committee for the Environmentally Sensitive Lands Ordinance project

Item H

Item H - additional materials

MOTION: A motion was made by Council Member Latas and seconded by Council Member Gillaspie to approve Steve Solomon, Doug McKee, Steve Taillie, Chet Oldakowski, Bill Adler and Don Chatfield and direct Council Member Abbott to appoint a Town resident.

Council Member Abbott explained that she nominated a Catalina resident as this issue will affect their area. She requested a friendly amendment to include that the Technical Advisory Committee meetings be open to the public.
 
The amendment was not accepted.

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

I.	Appointment of Gail Munden, Greater Oro Valley Arts Council (GOVAC) representative to the Art Review Commission with term effective March 4, 2009 - July 31, 2009

Item I

J.	Appointment of Eugene Wowk to the Development Review Board for a term commencing March 4, 2009 and subject to reappointment on July 31, 2009

Item J

MOTION: A motion was made by Council Member Gillaspie and seconded by Council Member Kunisch to appoint Eugene Wowk to the Development Review Board for a term commencing March 4, 2009 through the regular term expiration date in two years.

MOTION carried, 7-0.

K.	Appointment of Tom Bush as Oro Valley’s representative to the Committee on Accountability for Regional Transportation

Item K

Item 2

Finance Director Stacey Lemos explained the revenue shortfalls in the amount of $5.2M which included the $1.2M loss should the utility tax sunset. She discussed the:
~Multiple losses in revenues.
~Measures the Town Manager recommended to reduce the shortfall.
~Utility tax was essential to reducing the deficit.
~Town’s sources of revenue were sensitive to the economy.

She noted that the Utility tax was a stable, sustainable source of revenue.

Ms. Lemos reviewed the recommendations from the Finance and Bond Committee:
~Use 1/7th of the Contingency Fund to close the gap.
~Review the contingency policy for this.
~Renew the Utility Tax temporarily.
~Study the Town’s revenue sources.
~Identify alternate revenue sources.
~Extend the 2% Utility Sales tax.

Mayor Loomis opened the public hearing.

The following Oro Valley residents spoke in favor of extending the Utility tax:
~Marc Adams                           ~Bob Milkey
~Joe Hornat                             ~Richard Tracy
~Wes Helvig                             ~Daniela Andresen
~Lindsay Ortiz                          ~Diane Little
~Mary Snider                            ~Bill Adler
~Kevin Mattocks, Fraternal Order of Police Lodge 53 Vice President and non-resident

The following Oro Valley residents spoke in opposition of the Utility tax:
~John Musolf                           ~Art Segal

MOTION: A motion was made by Council Member Kunisch and seconded by Council Member Gillaspie to approve the renewal of the Town's current 2% utility sales tax on water, natural gas and electricity services.

MOTION carried, 4-3 with Vice Mayor Carter, Council Member Abbott, and Council Member Garner opposed.

Council Member Abbott stated that she was opposed to the tax as she did not feel that the belt was tight enough yet. She expressed support for taking money from the Contingency Fund to make up the shortfall.

Item 5

Town Manager David Andrews stated that the passage of the Utility tax renewal aided in addressing the revenue shortfall. He identified the causes for the shortfall:
~Sunset of the 2% Utility tax
~Decreased construction activity in the amount of $1M
~Decreased State shared revenues of $1.2M
~Recession in the economy

He stated that his recommendations were meant to enhance revenues and cut costs. He recommended:
~Organizational restructuring
  *Reduction in force plan
  *Net savings of $1.5M
  *Eliminating 27 positions
~Use Bed Tax revenues that were earmarked for the failed Naranja Town Site Park bond.
~Renewal of Utility Sales tax
~Eliminate $300,000 from Operations and Maintenance to include:
 *Out of state travel
 *Consultants
~Deferring Capital Improvement Projects for FY 09/10 and possibly FY 10/11
~One time expenditures of $500,000
~6 police officer positions contingent on a grant from the U.S. Department of Justice

He noted that:
~Initially he recommended 33 positions be eliminated
~6 positions remain vacant due to the hiring freeze 
~There were two options for severance pay
~This recommendation was not a result of any employee’s performance
  *75% of the Town’s expenditures were pay and benefits.

Discussion clarified the following:
~The deficit from the General fund in January was $4.2M
  *The Highway fund numbers were not available
    -Has a deficit of $1M
~Lifting the hiring freeze was not part of the motion for this item
~Reclassifications were meant to compensate employees that would have to perform the duties of positions that were cut
~Department heads reviewed areas to cut spending
  *Not enough to close the gap
  *Warranted eliminating positions
  *Each department had to cut position(s)
~The grant application for the police officer's positions would take six weeks to process
  *The grant would fund the officers' salaries for three years
  *The Town could be required to retain the officers at the Town's expense at the end of that time
~Officers removed from calls facilitated a reduction in traffic accidents and incidents

Mayor Loomis opened the floor for public comment.

Oro Valley resident John Musolf stated that he was opposed to Staff reductions.

Oro Valley resident Lyra Done stated that she was opposed to reductions in Staff and wanted the officers funded. She recommended cuts in salaries so that employees would remain employed.

Oro Valley resident Richard Tracy stated that he was opposed to cutting law enforcement. 

Oro Valley resident Joe Hornat stated his support for public safety. He noted that he would rather see employees take pay cuts than lose jobs.

Oro Valley officer Kevin Mattocks stated that he supported services and was opposed to layoffs.

Oro Valley resident Steve Sicklebower stated that he was opposed to decreasing the work force in the police department.

Oro Valley Officer Megan St. John stated that she was a member of the Community Action Team. She stated her opposition to the reduction in force.

Oro Valley School Resource Officer Bruce Thomas noted that the police department was fully staffed and suggested that the reductions be made through attrition.

John Cocco of Sanofi Aventis stated that Oro Valley employees helped to make their building a quality building. He urged Council not to reduce Staff.

Beth Koch of Sanofi Aventis urged Council not to reduce Staff. She stated that the Town has great people that make it worthwhile and the community that it is.

Oro Valley resident Chuck Hofbauer stated that he was opposed to layoffs in the police department.

Oro Valley resident Wes Helvig urged Council to research Town funds to avoid a reduction in force of 27 employees.

Oro Valley resident Mary Snider requested that this item be further reviewed noting that the Town has dedicated employees. She urged Council to review essential vs. non-essential services and wanted the police officers retained regardless of funding.

Oro Valley resident Kara Sicklebower stated her opposition to a reduction in police officers.

Oro Valley resident Robert Schumann stated that the two best things about Oro Valley were the view of the mountains and the library. He stated that wanted funding for the library increased.

Oro Valley resident Bill Adler stated his opposition to the layoffs. He stated that he would rather see the Utility Sales tax doubled. He noted that he was opposed to the use of Contingency funds to cover the shortfall.

Oro Valley resident Steve Solomon stated that he was proud to be a resident due to the services. He noted that the Town has established a Staff that provided excellent customer service and that funds should be used to retain skilled employees.

Oro Valley resident Sandy Pacheco stated that the police department arrived at her place of business in 13 seconds and saved her life during an armed robbery. She stated her support for increasing taxes to retain officers.

Oro Valley Terry Parish stated that all of the positions had contributed to the excellence of the Town. He stated that the Contingency fund was meant for a time like this. He urged Council to stand up for the employees, freeze raises and keep officers in the schools to protect children.

Oro Valley resident Melanie Larson stated that people out of work need places to go and that hours of operation for the library and parks should not be reduced. She concurred that the Contingency Fund should be used to maintain service levels.

Discussion noted the following:
~Direction was given to directors to make cuts in staff for each department.
~The Municipal Operations Complex was not included
~Capital Improvement Projects would be deferred for 1-2 years
~Each department reviewed areas to cut in operations and maintenance.
~Cuts had been made to the Oro Valley Vista Newsletter.
~Recession is projected to be long term

Mayor Loomis clarified that the Town revenues were derived from sales tax, State shared revenues from income tax and State tax. He noted that the State shared revenues lagged two years behind. He explained that the Oro Valley Marketplace was anticipated to do better than it has. He stated that in the next 3 years the Town’s State shared revenues will be down.

It was noted that:
~The Hilton El Conquistador’s revenues were down 20%.
~Layoffs in the police department were not part of this proposal
~The largest Staff reductions were in Development Services, due to the lack of growth.  
~The long term must be considered with respect to the Contingency Fund.

Council Member Kunisch stated that he could not support the reclassifications.

Council Member Gillaspie stated that the Town ran leaner than other municipalities and was well run. He stated that it was important to protect the long term. He noted that if services were cut and parks and the library were shut down, the Town will not recover.

Council Member Garner noted that each department had to make cuts and the police department would not have made any cuts if the grant is awarded.

Chief Sharp stated the following:
~He chose to cut a single program instead of crippling several programs.
~If funded the grant would cover salaries and benefits for those positions
  *The details of the grant were still unclear.
~95 positions in the police department were funded by the General fund
  *Remaining positions were funded from other sources of revenue.

Human Resources Director Sandra Abbey stated that the attrition rate of 8-9% projected for next year was based on the attrition rate of previous years. 

Council Member Abbott stated that the positions recommended for layoffs should be reconsidered. She requested that furloughs and salary reductions be investigated. She noted that she was opposed to reclassifications. She stated that the Contingency fund should be considered only after all other sources have been exhausted. She recommended further reductions to out of state travel beginning with Council.

Mayor Loomis stated his concern that the plan did not identify the programs that would be impacted. He noted the items he anticipated seeing in the recommended budget from the Manager on April 1, 2009:
~Identify essential versus non-essetial jobs
~Anticipated attrition for the coming year
~Continuation of the hiring freeze
~Elimination of recreation and aquatic programs
~Reduction of library programs
~Reduction or elimination of Community funding. 

He stated that the Town was required to balance the budget and do so with a zero growth level. He stated that the budget could not be balanced without reducing the workforce.

MOTION: A motion was made by Council Member Kunisch and seconded by Mayor Loomis to table the item until the recommended budget has been reviewed by Council.

MOTION failed, 3-4 with Vice Mayor Carter, Council Member Garner, Council Member Gillaspie, and Council Member Latas opposed.

MOTION: A motion was made by Council Member Latas and seconded by Council Member Gillaspie to approve the Town Manager's Organizational Restructuring and Reduction in Force Plan to include severance packages of 60 days for those employees with less than 5 years of service and 90 days severance packages for those employees with 5 years or more of service.

MOTION: A motion was made by Vice Mayor Carter and seconded by Council Member Garner to amend the motion to include the six police officers positions for a total of 33 positions eliminated.

MOTION failed, 3-4 with Mayor Loomis, Council Member Abbott, Council Member Kunisch, and Council Member Latas opposed.

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

Mayor Loomis called for a recess at 9:01 p.m. The meeting resumed at 9:13 p.m. 

Item 3

Assistant Planning and Zoning Director Paul Popelka discussed the amendment brought forth for this project. He stated that:
~The design deviated from Rancho Vistoso standards
~Other pad exemptions exist within the area
~The Development Review Board recommended approval by 4-0 vote
~Staff recommended approval

Stephen French of Effective Signs stated that he represented Venture West's project at Innovation Park. He explained that the parcel was 10 acres and had 2 entrances and exits. 

He stated that the directory signs were small.

Discussion noted that:
~The signs would not be illuminated
~Logos were allowed for registered trademarks only.

Mayor Loomis opened the public hearing.

Tucson resident Sherree Mongelli spoke about the numerous meetings that had been conducted over the last nine months.

Mayor Loomis closed the public hearing.

MOTION: A motion was made by Council Member Gillaspie and seconded by Vice Mayor Carter to approve Ordinance (O)09-02, OV3-08-11, Effective Signs representing Innovation Corporate Center, LLC., approval of a PAD Exemption for Innovation Corporate Center East, Lots 1-6, Rancho Vistoso Neighborhood 3, Innovation Corporate Center-East, located NE of the intersection of Innovation Park Drive and Tangerine Road.

MOTION carried, 7-0.

Item 4

Ann Delcastillo of Enterprise Rent-A-Car stated that they would like to move to the new location that would be near a car wash and have better access. She clarified that they were not open for business on Sundays.

Property owner Neil Capin stated that the business would not interfere with parking for the restaurant onsite.

Assistant Planning and Zoning Director Paul Popelka stated that the business was a compatible use for the property. He noted that a neighborhood meeting was held however there were no attendees. He stated that Staff recommended approval.

Mayor Loomis opened the public hearing.

Tucson resident Donny Cathey stated that it was a win-win situation for all concerned. He explained that his business was next door to Enterprise Rent-A-Car’s current location and that he wanted to expand his store. He urged Council to approve the item.

Mayor Loomis closed the public hearing.

MOTION: A motion was made by Council Member Gillaspie and seconded by Council Member Kunisch to adopt Resolution No. (R) 09-14, OV8-08-01, approval of a conditional use permit for the Enterprise Rental Car facility, located in proximity to the northwest corner of Oracle Road and Cool Drive.

MOTION carried, 7-0.

Vice Mayor Carter requested that an item regarding amending Parliamentary Rules and Procedures and limiting Council Member debate to 5 minutes unless notified ahead of time be added to the March 25, 2009 agenda. Council Member Kunisch seconded the item.

MOTION: A motion was made by Vice Mayor Carter and seconded by Council Member Kunisch to adjourn the meeting at 9:38 p.m.

MOTION carried, 7-0.