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

Mayor Loomis led the audience in the Pledge of Allegiance.

Town Manager David Andrews reviewed the upcoming meetings and events.

Mayor Loomis announced that he and Vice Mayor Carter traveled to Sahuarita, Marana and Green Valley to kick off the new circulator bus services.

Chief of Police Danny Sharp announced that in celebration of National Bike Month, the Police Department and Bikes Direct would be sponsoring a bike safety roundup on Saturday, May 16th.  He also thanked Mr. Bill Adler for his help on this project.

Town Manager David Andrews acknowledged Communications Administrator Mary Davis and Communications Specialist Kelsie Hanson for their work on the Oro Valley Vista newsletter.  He explained that the Town was awarded the PRimus Award for the Vista from the Southern Arizona Chapter of the Public Relations Society.  He also announced that the Town was awarded a $3,000 grant to host an Andrews Scholar.  He explained that as a Master of Public Administration student, Joe Grimm from Arizona State University will work at the Town this summer.

Building Administrator Suzanne Smith announced that this week was National Building Safety Week and reminded everyone to replace the batteries in their smoke detectors.

Town Clerk Kathryn Cuvelier announced that it was also Municipal Clerk’s Week.

There being no objections, Mayor Loomis moved the Presentation up before the Call to Audience.

Terry Parish, Oro Valley resident, expressed concerns regarding a recent survey conducted by Council Member Latas and commented that it should not be considered a governing document or an official Town survey.  He also stressed the importance of the survey questions and how they are formatted.

Richard Tracey, Oro Valley resident, commented on public safety in the community stating that there were many aspects to be considered including but not limited to police protection, fire safety, roads and parks.  He further commented on the survey conducted by Council Member Latas and stated that in order to make surveys valuable,  "random sampling" must be utilized. 

John Musolf, Oro Valley resident, suggested that community funding should be cut to zero in the Budget.  He further commented that tax dollars should not be used to fund outside agencies. 

Kevin Mattox, non-Town resident and President of the Oro Valley Fraternal Order of Police (FOP) #53 commented on the Town’s budget process, recurring/non-recurring revenues and the use of the Town’s contingency funds.

Gerri Ottobani, Oro Valley resident, commented on a survey done in the past by
the Town regarding the Oro Valley Marketplace in which she noted that comments by respondents were only allowed at the end of the survey and not after the individual questions. 

Council Member Latas reviewed the methodology of her survey and explained that it was a random sampling of registered voters.

At the request of Council, Mayor Loomis pulled Items B, H, and K for discussion.

MOTION: A motion was made by Vice Mayor Carter and seconded by Council Member Garner to approve the Consent Agenda minus Items B, H, and K.

MOTION carried, 7-0.

A.	Minutes - March 25, April 1, April 6, April 8, 2009

Item A

B.	Coyote Run Transit Monthly Operations Report - March 2009 (PULLED FOR DISCUSSION)

Item B

MOTION: A motion was made by Council Member Gillaspie and seconded by Council Member Kunisch to accept Item B, the Coyote Run Transit Monthly Operations Report dated March 2009.

MOTION carried, 7-0.

C.	FY 2008/09 Budget Status Report through March 31, 2009

Item C

D.	Police Report - March 2009

Item D

E.	Public Safety Fire and Emergency Medical Service Providers Quarterly Report to Council - January 1, 2009 through March 31, 2009

Item E

F.	Metropolitan Tucson Convention & Visitors Bureau Quarterly Report: October - December 2008 (Continued from 3-25-09)

Item F

G.	Trip Report for Mayor and Council - April 2009

Item G

H.	Resolution No. (R)09-21 Authorizing and approving the Agreement between the Town of Oro Valley and Ventana Medical Systems, Inc. for construction and installation of street lights on Innovation Park Drive (PULLED FOR DISCUSSION)

Item H

In response to questions from Vice Mayor Carter, Town Engineer Craig Civalier reviewed specifics related to the traffic lights explaining that there would be four lights installed by Ventana Medical Systems.  He also stated that the lights would be maintained by the Town but Ventana would pay for the installation and the electricity.

MOTION: A motion was made by Vice Mayor Carter and seconded by Council Member Kunisch to adopt Resolution No. (R)09-21.

MOTION carried, 7-0.

I.	Resolution No. (R)09-22 Authorizing and approving an Intergovernmental Agreement between the Town of Oro Valley, the Town of Marana and Pima County for a design concept report regarding the construction of roadway improvements on Tangerine Road between Interstate 10 and La Canada Drive

Item I

J.

Resolution No. (R) 09-23 Authorizing and providing for the transfer of Town Water Utility funds to prepay amounts due under a lease-purchase agreement necessary to defease and redeem the outstanding Town of Oro Valley Municipal Property Corporation Excise Tax Revenue Bonds Series 1999; Ratifying the actions of all officers and agents of the Town and others with respect to the transfer, prepayment, defeasance and redemption; and declaring an emergency

Item J

K.	Approval of reallocation of funds to support Project Graduation shortfalls (PULLED FOR DISCUSSION)

Council Member Abbott explained that she and Vice Mayor Carter requested this agenda item as they would like to allocate a portion of their travel budget ($1,000 each) to help fund Project Graduation if there was a shortfall.

Discussion followed regarding:
 ~ $10,000 was already budgeted for Project Graduation
 ~ Monies are budgeted for Council travel and if that money is not used then it goes back into the General Fund. Monies are not an individual Council member's "pot of money".
 ~ Some Council members do not travel and they would rather allocate those unspent dollars for public good.
 ~ Community Funding process.

MOTION: A motion was made by and seconded by to

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

Item 2

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

MOTION: A motion was made by Council Member Abbott and seconded by Council Member Kunisch to recommend approval of the issuance of the Series 12 Liquor License to the Arizona State Liquor Board for Mr. Jerry Yarbrough and principal at Cibaria Cucina Italiana located at 12985 N. Oracle Road, #165.

MOTION carried, 7-0.

Item 3

Paul Oland, The WLB Group, representing Vistoso Partners, explained that the applicants are requesting an additional continuance of this item as they are still working on the dedication of the school site.  He also explained that they are proposing to submit a Planned Area Development (PAD) amendment with the General Plan amendment and would like to come back to Council in a few months for consideration of both items. 

Discussion followed regarding issuance of title for the school site, the General Plan amendment process, no increase in number of units, increase in open space and the original school site was rejected by Amphitheater School District.

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

Planning and Zoning Director Sarah More reported that the Planning and Zoning Commission has recommended approval of the continuance.

MOTION: A motion was made by Vice Mayor Carter and seconded by Council Member Abbott to continue Resolution (R)08-82 and that the item come back to Council by the second meeting in August by first meeting in October (friendly amendment by Council Member Gillaspie accepted by Vice Mayor Carter and Council Member Abbott) and will include the Planned Area Development (PAD) amendment and all necessary zoning changes to incorporate the General Plan amendment changes.

MOTION carried, 7-0.

Item 4

Planning and Zoning Director Sarah More explained that the applicant, Curry Architecture, has requested an amendment to the definition of Mature Adult Retirement Quarters (MARQ).  She also explained that the request is consistent with the Town’s General Plan policies to broaden housing choices and the Town’s Building Codes and it is also consistent with other jurisdictions’ standards.  She further reported that the Planning and Zoning Commission voted 5-2 to recommend approval.

Discussion followed regarding zoning categories, national trends for retirement quarters, definition of full kitchen in the Building Code (must provide a permanent cooking appliance - something that is "hard-wired, ducted or plumbed"), safety concerns, the definition of Mature Adult Retirement Quarters requirement for a communal dining area and because the Town is almost at build out, there are limited areas left that allow this use. 

Ron Jackson, Curry Architects, stated that Holiday Incorporation has developed and managed over 350 facilities in the United States.  He explained that full kitchens are an uncommon practice with residents as most do not want full kitchens and they are costly and unused.  He stated that the retirement centers are required to provide three meals per day in a central dining room.  Mr. Jackson also explained that the elimination of full kitchens would reduce the development cost and it would be passed onto residents. 

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 Council Member Abbott to deny Ordinance (O)09-05, OV7-09-001, Curry Architecture LLC request to amend the Oro Valley Zoning Code Revised, Chapter 31, Definitions.

Discussion:
Council Member Abbott stated that she supports the denial because Oro Valley is a community of excellence and she felt that this request would be lowering standards.  She also stated that she felt that this was a creative way by the developer to add more units at the expense of the residents’ safety.

Vice Mayor Carter commented that both combinations, rooms with kitchens and rooms without kitchens, would allow the tenants to make a choice. 

Council Member Kunisch stated that this is the way that this industry is going and the tenants would have options. 

Council Member Garner commented that the Planning and Zoning Director has stated that there is very little zoning left in the Town that would allow this type of unit and he felt that the request was specifically targeting one development. 

Council Member Gillaspie commented that density is regulated by the zoning district.  He also stated that it is good that potential residents have different options.

Mayor Loomis requested that the motion be amended to continue the request for one month to allow staff time to get additional definitions on "hard wired" microwaves, get a better understanding of the community’s need, get a reasonable percentage of how many units would be equipped with full kitchens and to possibly provide restrictions/requirements on types of services if kitchens are not provided.

Council Member Latas did not accept the amendment for continuance as she felt that it did not serve the best interest of the community. 

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

to continue to June 17th. 5-2 with Garner and Abbott opposed.

MOTION: A motion was made by Council Member Kunisch and seconded by Vice Mayor Carter to continue Ordinance (O)09-05, OV7-09-001 for 6 weeks (June 17th) with direction to staff to gather more information as to the number of units that would provide cooking equipment, the number of meals to be provided if there are not cooking facilities, and the cost associated with providing cooking appliances.

Council Member Gillaspie requested that staff include industry information regarding available options.

Council Member Latas asked that the applicant provide further market research to support their request.

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

Mayor Loomis recessed the meeting at 7:57 p.m.  The meeting resumed at 8:03 p.m.

Item 5

Chief of Police Danny Sharp provided an overview of the Police Department’s current facilities located at Town Hall at 11,000 N. La Canada, 1171 N. Rancho Vistoso, 8001 N. Oracle Road and the impound yard located at 680 W. Calle Concordia.  He explained that per an agreement with Vestar, the proposed substation would be located at the Oro Valley Marketplace and would be rented to the Town at $1 per year for 10 years.  He explained that this substation would provide a deployment location for the Bicycle Patrol and would also provide the area with high visibility and faster police response for this high traffic area.  He also reported that Vestar had agreed to allow a repeater and antenna at the sub-station to improve communications and better serve the surrounding area.

Chief Sharp then reviewed the bid process and reported that the second bid process brought in a bid that would save the Town approximately $50,000.  He explained that after May 18th, the contractor can withdraw their bid with no penalty or they can submit a request for any increased costs due to the delay (such as increased materials cost or subcontractor bids). 

Discussion followed regarding lowering costs, meeting requirements of the lease, possibility of using seizure grant funds, postpone building the Emergency Operations Center (EOC) and operating costs and cost of computers and other equipment

Mayor Loomis opened the floor for public comment.

John Musolf, Oro Valley resident, recommended either rescinding the building of the Police substation or at least delaying it.  He said that the Town should save jobs before buildings.

Richard Tracy, Oro Valley resident, stated that the substation would be located at the main intersection of Tangerine Road and Oracle Road and he felt that this would save transportation costs and police time going to this location verses going to Town Hall.  He stated that the money is available and recommended that the Council fund the substation.

Further discussion followed regarding providing security to the Oro Valley Marketplace, placement of the repeater and antenna at this site would provide better communication, use of funds allocated for the substation to save jobs, fund the substation without the Emergency Operations Center, monies allocated for funding the substation are Capital Improvement Plan (CIP) dollars, use of contingency funds, commitment made to citizens to have a police substation in this area, and possibly redesigning the substation to a bare minimum until the Town’s financial situation improves.

MOTION: A motion was made by Council Member Gillaspie and seconded by Council Member Kunisch to proceed with the development of the Oro Valley Police Substation in the Oro Valley Marketplace with the exception that the Emergency Operation Center be excluded and that staff work with the Police Chief to define the minimum requirements to have the facility meet contract requirements and that they report back to the Council if there is a legal change requiring a new bid. 

MOTION carried, 6-1 with Vice Mayor Carter opposed.

Item 6

Building Safety Director Suzanne Smith presented background information for the Rancho Vistoso Municipal Complex (RVMC).  She then reviewed four alternatives for the development of the RVMC:
 ~ Option 1 - Utilize a phased construction approach and relocate the facilities to approximately 13 acres of the southeast portion of the Naranja Town Site.  
 ~ Option 2 - Phased facilities at the current Rancho Vistoso site.
 ~ Option 3 - Build the facilities in one phase at the current Rancho Vistoso site. 
 ~ Option 4 - Put the project on hold and wait for the economy to improve. 

Finance Director Stacey Lemos reviewed estimated costs for each of the four options: 
 ~ Option 1: Monies from potential sale of the RVMC site plus existing $5.9 million cash reserves for the RVMC would be utilized to pay down the outstanding excise bonds with the remaining proceeds used to fund the buildings.
~ Option 2: Phased approach of RVMC - continue to pay the existing debt service on the land and issue bonds in the amount of $10 million to fund the buildings (General Fund Debt Service $77,600, Highway Debt Service $701,000, Water Fund Debt Service $493,000).
~ Option 3:  Build RVMC in one phase - (General Fund Debt Service $1.1 million, Highway Debt Service $880,000, Water Fund Debt Service $572,000).
~ Option 4: Place project on hold, continue to pay on debt service amount for prior land purchase in the amount of $450,000 annually split among the different funds.

Ms. Smith further reported that based on the analysis of the four options, staff recommended proceeding with Option 2, the phased plan at the current site. She also stated that due to the unstable economy, Council may want to consider proceeding with the design of the complex and then determine next fiscal year whether construction should proceed.

Discussion followed regarding the cost of the design (approximately $1.5 million); $5.9 million already set aside for the RVMC; lawsuit regarding the Calle Concordia property; Option 4 - continue to use Rancho Vistoso site for the Municipal Operations Center but put new construction on hold for up to three years and be proactive and make the current temporary facility more functional and livable for staff, and the Town is not currently in a position to consider the other options. 

Mayor Loomis opened the floor for public comment.

John Musolf, Oro Valley resident, felt that the RVMC should be put on hold for a 3 year period and then revisit it at that time.  He questioned what the legal reasons were that prevented the Town from selling the land.  He commented that the complex should then be moved to the Naranja Town Site.  He also stated that he felt that buildings should be cut and not people.

Mayor Loomis explained that the land was purchased for the sole purpose of building the Municipal Operations Center. 

Further discussion followed regarding utilizing impact fees, 5-year forecast predicts that sufficient funding is available to meet obligations for roadway projects, and current bonds for RVMC are callable in fiscal year 2016.

MOTION: A motion was made by Council Member Latas to move ahead with Option 4 with the addition that we use reserve funds to move forward with the design phase so that we can move forward at the most opportune time. Motion failed due to lack of second.

MOTION: A motion was made by and seconded by to

MOTION carried, 7-0.

Council Member Latas - May 20th - Resolution supporting the Arizona Heritage Alliance for funding the Heritage Fund that could potentially affect current State parks and projects such as Steam Pump Ranch.  Council Member Garner seconded the request.

Council Member Abbott - June 3rd - Proposal and presentation for a signature Town event.  Council Member Kunisch seconded the request.

MOTION: A motion was made by Vice Mayor Carter and seconded by Council Member Kunisch to adjourn at 9:30 p.m.

MOTION carried, 7-0.