PRESENT:

Paul Loomis, Mayor Kenneth "K.C." Carter, Councilmember Barry Gillaspie, Councilmember Salette Latas, Councilmember Mary Snider, Councilmember Patricia Spoerl, Councilmember

EXCUSED:

Bill Garner, Vice Mayor

(Mary Snider was administered the Oath of Office after the Roll Call.)

Town Clerk Kathryn Cuvelier administered the Oath of Office to newly appointed Councilmember, Mary Snider.

Mayor Loomis recessed the meeting at 6:05 p.m. The meeting resumed at 6:10 p.m.

Click here for Item 2

MOTION: A motion was made by Councilmember Gillaspie and seconded by Councilmember Carter to adopt Resolution (R)10-13.

MOTION carried, 6-0.

Click here for Item 3

Judge George Dunscomb presented the Council Communication and requested that the Council approve a $13.58 Oro Valley fee per case.  He explained that with required State fees, the total fee assessed would be $25.00.

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

MOTION: A motion was made by Councilmember Carter and seconded by Councilmember Gillaspie to adopt Ordinance (O)10-13, amending the Oro Valley Town Code Section 5-5-1(A) approving a $13.58 per case security fee to offset court security expenses.

MOTION carried, 6-0.

Click here for Item 4

MOTION: A motion was made by Councilmember Spoerl and seconded by Councilmember Gillaspie to appoint John Buette to the Planning and Zoning Commission.

MOTION carried, 6-0.

Click here for Item 5

MOTION: A motion was made by Councilmember Gillaspie and seconded by Councilmember Carter to appoint Ellen Guyer to the Historic Preservation Commission.

MOTION carried, 6-0.

Click here for Item 6

Acting Planning and Zoning Director Paul Popelka reviewed the Planning and Zoning Department’s Work Plan.  He highlighted projects, recommended priorities and estimated staff hours to complete said projects.

Discussion followed regarding the Work Plan priorities, Arroyo Grande, the General Plan and the Voluntary Green Building program.

MOTION: A motion was made by Mayor Loomis and seconded by Councilmember Gillaspie to approve the Planning and Zoning Work Plan with the following changes:
Item 1 - Sign Code Update to include any Lighting Code changes
Item 2 - Zoning Code update
Item 3 - Update Zoning Code Development Design Guidelines and to include any additional recommendations in design guidelines for voluntary "green" ideas and guidelines for water harvesting and to provide recommendations pointing where appropriate to Standards. 
Item 4 - General Plan Update
Item 5 - New General Plan Energy and Conservation Elements and remaining items to follow in the order as presented and that Item 8 (Voluntary Green Building Program Certification) and Item 11 (Town Sustainability Plan -Green Team) be removed from the Work Plan.

MOTION carried, 6-0.

MOTION: A motion was made by Councilmember Carter and seconded by Councilmember Gillaspie to adjourn the Special Session at 7:15 p.m.

MOTION carried, 6-0.

Mayor Loomis recessed the meeting at 7:15 p.m.  The meeting resumed at 7:20 p.m.

PRESENT:

Paul Loomis, Mayor Kenneth "K.C." Carter, Councilmember Barry Gillaspie, Councilmember Salette Latas, Councilmember Mary Snider, Councilmember Patricia Spoerl, Councilmember

EXCUSED:

Bill Garner, Vice Mayor

Click here for Study Session Item 1

Conservation & Sustainability Manager Bayer Vella presented an update on the Energy Efficiency Conservation Implementation Strategy Plan.  He reported that this project would help reduce the Town’s energy demands and replace aging capital equipment in a fiscally responsible manner utilizing Energy Efficiency Conservation Block Grant monies.  Mr. Vella then highlighted the following:

~Solar production and energy efficiency:
     - Town Hall complex - covered parking with solar elements
     - Replace light bulbs, HVAC equipment, water conservation fixtures, Town building energy management (controls, low-E window film), pool solar heating, street lighting, etc.

~Challenges to solutions:
     - Grant approval
     - Performance contracting: Tucson Electric Power (TEP) solar rebate ($1.7 million dollar rebate confirmed)
     - CREBS Energy Bonds (Clean Renewable Energy Bonds) - expecting a 1-2% interest rate
     - Municipal Tax lease financing vs. Cash Reserve (most recent bid is 4.9%)
     - Aim is to have no fiscal impact to the General Fund.

IMPLEMENTATION: Achievements

STRATEGY ITEM	DATE ACHIEVED
Town Council Approval of Strategy	11/18/09
Submittal of Strategy to Dept. of Energy Dept. of Energy approval of Strategy	12/03/09 03/01/10
Application for Tucson Electric Power Solar Rebate Solar Rebate Approval	12/30/09 03/04/10
Contract Review and Negotiations	95%
Finance Research & Market Quotes	80%

NEXT STEPS

STRATEGY ITEM	TARGET DATE
Research new jobs Legislation & Finance	April
Town Council Review: Finance Vehicles	5/05/10
DRB: Architecture and Landscape review	5/11/10
Contract with APS Energy Solutions	5/12/10
Final Plans: Technical Design and Engineering and Building Permits	6/11/10
TEP Deadline: Building permit for solar	7/13/10
Construction start	7/15/10
100% construction complete	2/15/11

Mr. Vella further explained that Town staff was in contract negotiations with Arizona Public Service (APS) but the contract could not be signed until financing was in place (Staff and Bond Counsel are currently working on the financing options).  He also reported that this item was on the May 5, 2010 agenda for Council’s review and approval.

Councilmembers Snider and Latas commended staff for their work on this project.

Click here for Study Session Item 2

Economic Development Manager Amanda Jacobs presented the Community Funding background:
September 2001 - Community Funding process approved
November 2009 - Community Funding suspended
January 2010 - Study Session requested to discuss Community funding and economic development
March 24th Study Session - Determine if future funding for the economic development partners should be considered within the annual Community Funding process, or become a separate discussion and if funded, become a dedicated line item within the Economic Development Division.

Ms. Jacobs reviewed the three current financial participation agreements and the positive and negative impacts to the Town by not funding the Economic Development partners in fiscal year 2010/11:

~CRITICAL PATH INSTITUTE (C-Path) 
  - 5 year contract ends June 30, 2010, so the Town saves $25,000 (C-Path was not going to request any more funding).

~ METROPOLITAN TUCSON CONVENTION & VISITORS BUREAU (MTCVB)
  POSITIVE IMPACTS:
  - Town would save $72,000
  - Hilton El Conquistador Resort would receive $179,280 in fiscal year 2010/11. This Economic Development Agreement expires September 1, 2011.
  NEGATIVE IMPACTS:
  - Hilton El Conquistador Resort estimates that they would lose 20% of their business.  MTCVB would no longer market the Resort.
  - MTCVB budgets $1 million to market tourism in the region whereas the Town budgets $60,000 for all economic development marketing efforts.

TUCON REGIONAL ECONOMIC OPPORTUNITIES, INC. (TREO)
  POSITIVE IMPACTS:
  - Town would save $40,000
  NEGATIVE IMPACT:
  - TREO budgets $1 million to market the region whereas the Town budgets $60,000 for all economic development marketing efforts.

BED TAX ALLOCATIONS: Total expenditures for fiscal year 2009/10 are $479,000:
 - $282,000 budgeted for Hilton El Conquistador Resort
 - $60,000 budgeted for Economic Development marketing
 - $25,000 budgeted for C-Path
 - $72,000 budgeted for MTCVB
 - $40,000 budgeted for TREO

Ms. Jacobs presented options for Council consideration:
~ Option 1 - Maintain the suspension of the Community Funding.  The Town would realize a savings of $137,000.
~ Option 2 - Consider funding MTCVB and TREO at current levels.  Total expenditures would be $112,000. Any approved funding would have to come out of the Bed Tax Fund cash reserves or a reduction to the $700,000 in bed tax funds to be used to subsidize the General Fund in fiscal year 2010/11.

Lynn Erickson, General Manager of the Hilton El Conquistador, commented that he met with Jonathan Walker from MTCVB.  He explained that Mr. Walker stated that they would terminate leads for all Oro Valley hotels if the Town no longer funds MTCVB. He also provided statistics regarding funding from Oro Valley, the City of Tucson and Pima County and stated that MTCVB’s primary funding comes from governmental entities.

Discussion followed regarding MTCVB’s memberships, separating economic development investments from community funding and evaluating events based on what they bring to Oro Valley.

Mayor Loomis opened the floor for public comment.

John Musolf, Oro Valley resident, agreed that economic development agreements are sometimes a good thing (increase sales tax and bed tax, create jobs).  He also commented that he felt that the MTCVB, TREO and C-Path performance measures should be revised before any further funding is approved. 

Bill Adler, Oro Valley resident, stated that funding economic development in the Town was imperative and that these agreements should be separate from Community Funding.  He felt that the problem was with the performance measures and results and felt that they needed to be more specific.  He also commented that rather than funding organizations that are reluctant or unwilling to provide specifics regarding performance measures, he would be interested to see what the Town could do "in house" and suggested that staff consider this option.

Lynn Erickson, General Manager of the Hilton El Conquistador, recommended that funding for economic development be a dedicated line item to provide a funding mechanism for those organizations that enhance the economy of Oro Valley (measured by their ability to increase revenue for Oro Valley or provide jobs).  He further provided statistics highlighting tax dollars collected and revenue generated due to the leads provided by MTCVB.  He encouraged Council to consider that economic development was essential to provide for the Town.

David Welch, Oro Valley resident and representing TREO, encouraged Council to consider economic development line items and community funding items separately.  He stated that the evolution of TREO as a public/private partnership continues.  He also commented that they are currently working on engaging the private sector to match the public sector’s contributions. 

Mayor Loomis requested that staff bring back a Resolution for consideration regarding identifying economic development investments and community funding as two separate elements in the budget.

MOTION: A motion was made by Councilmember Carter and seconded by Councilmember Snider to adjourn at 8:40 p.m.

MOTION carried, 6-0.