CITY OF PEORIA, ARIZONA COUNCIL CHAMBER January 17, 2006 A Regular Meeting of the City Council of the City of Peoria, Arizona was convened at 8401 W. Monroe Street in open and public session at 7:03 p.m. Following a moment of silence, Councilmember Carlat led the Pledge of Allegiance. Members Present: Vice Mayor Bob Barrett; Councilmembers Cathy Carlat, Patricia Dennis, Joan Evans, Vicki Hunt, and Carlo Leone Members Absent: Mayor John Keegan Other Municipal Officials Present: Terrence Ellis, City Manager; Susan Thorpe, Deputy City Manager; John Wenderski, Deputy City Manager; Neil Mann, Acting Deputy Manager; Steve Kemp, City Attorney; Mary Jo Kief, City Clerk; Constance Copeland, Assistant City Clerk; David Leonardo, Bob McKibben, Grady Miller, Stephen Bontrager, Dave Moody, J.P. de la Montaigne, Brent Mattingly, Steve Prokopek, David Nakagawara and Chad Daines. Audience: Approximately 35 individuals were present. Note: The order in which items appear in the minutes is not necessarily the order in which they were discussed in the meeting. Vice Mayor Barrett announced that Mayor Keegan was visiting Mississippi to represent the City of Peoria and formally bring the donations from Peoria to that city following the destruction of Hurricane Katrina. Vice Mayor Barrett thanked the City and the public for their help with the relief efforts. PRESENTATIONS: Presentation from Sunbelt Holdings for Vistancia Mark Hammons, Senior Vice President of Sunbelt Holdings, reported that Vistancia had been awarded several prestigious awards. He stressed the team effort and the part the City of Peoria played in making Vistancia a reality. Vistancia was recognized in January 2005 by the National Association of Home Builders (NAHB) as “America’s Best Master Planned Community” for its respect for land and resort-style amenities that incorporate the natural history of the desert. Vistancia also earned two coveted Gold Nugget Awards, “Best Master Planned Project of the Year” and “Best Community Site Plan – 100 Acres or More.” On behalf of Vistancia and Sunbelt Holdings, Mr. Hammons presented both awards to Vice Mayor Barrett and City Council. CONSENT AGENDA: All items listed with a “C” are considered to be routine or have been previously reviewed by the City Council, and will be enacted by one motion. There was no separate discussion of these items. CONSENT – New Business: Vice Mayor Barrett asked if any Councilmember wished to have an item removed from the Consent Agenda. A motion was made by Councilmember Dennis, seconded by Councilmember Leone, to approve the Consent Agenda Items as submitted. Upon vote, the motion carried unanimously. 1C MINUTES: Special 4:00 p.m. Meeting – December 13, 2005 Special 7:00 p.m. Meeting – December 13, 2005 2C Notice of Intention, Reclaimed Water Rates Adopted a Notice of Intention to adjust rates for reclaimed water and establish February 21, 2006 as the date for a public hearing on the proposed reclaimed water rates. 3C Accept Funding, Peoria Public Library a) Authorized the receipt of donations in the amount of $1,000 from Wal-Mart, $9,705 from the Friends of the Peoria Public Library, and $191 from Peoria citizens; and b) Approved a budget transfer in the amount of $10,896 from the General Fund Contingency Account to the Main Library General Fund Operational Supplies/Equipment Account in the amount of $1,500; Community Promotions Account in the amount of $1,500; Books/Periodicals/Subscriptions Account in the amount of $1,191; and Computer Hardware Account in the amount of $6,705. 4C Accept Grant, U.S. Department of Homeland Security, Greenway Water Treatment Plant a) Accepted a grant in the amount of $100,000 from the U.S. Department of Homeland Security Fiscal Year 2005 Urban Area Security Initiative for target hardening of the Greenway Water Treatment Plant (LCON00706); and b) Approved a budget amendment in the amount of $100,000 from the Water Fund-Greenway Water Treatment Plan Other Equipment Account to the Homeland Security Grant Fund Other Equipment Account. 5C Authorize Expenditure, Specialized Surface Utility Paving and Construction, LLC, Speed Hump Installation Services a) Authorized an expenditure in the amount of $57,006 utilizing existing City of Chandler Contract TE-5610-1883 with Specialized Surfacing Utility Paving and Construction, LLC for speed hump installation services; and b) Approved a budget adjustment in the amount of $6,000 from the General Fund Contingency Account to the Neighborhood Traffic Management Program for additional work to be performed for the Peoria Unified School District. 6C Contract, Maricopa County, Transportation Services Authorized the City Manager to execute an intergovernmental agreement with Maricopa County for transportation services for low income, disabled, and elderly persons. (LCON00806) 7C Neighborhood Traffic Management Program, Additional Residential Traffic Control Area RESOLUTION NO. 06-14 A RESOLUTION OF THE MAYOR AND THE COUNCIL OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA AUTHORIZING THE ESTABLISHMENT OF A RESIDENTIAL TRAFFIC CONTROL AREA FOR THE FLETCHER HEIGHTS 3 NEIGHBORHOOD (AREA BOUNDED BY LAKE PLEASANT PARKWAY, 83RD AVENUE, BEARDSLEY ROAD, AND 87TH AVENUE). Adopted RES. 06-14 establishing an additional residential traffic control area for the Neighborhood Traffic Management Program for the Fletcher Heights 3 Neighborhood, area bounded by Lake Pleasant Parkway, 83rd Avenue, Beardsley Road and 87th Avenue. 8C Maintenance Improvement District No. 1028, Vistancia Parcel C30, Phase 1, Blue Sky and El Mirage Road RESOLUTION NO. 06-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEORIA, ARIZONA, DECLARING ITS INTENTION TO CREATE AN IMPROVEMENT DISTRICT TO MAINTAIN LANDSCAPING INCLUDED WITHIN, NEAR AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, FOR MAINTENANCE WITHIN AN AREA IN THE CITY OF PEORIA AS DESCRIBED HEREIN; ADOPTING PLANS FOR CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 1028, VISTANCIA PARCEL C30, PHASE 1 (DESERT BREEZE AT TRILOGY AT VISTANCIA), AS MORE PARTICULARLY DESCRIBED HEREIN, AND DECLARING THE WORK OR IMPROVEMENT TO BE OF MORE THAN LOCAL OR ORDINARY PUBLIC BENEFIT, AND THAT THE COST OF SAID WORK OR IMPROVEMENT SHALL BE ASSESSED UPON A CERTAIN DISTRICT, AND PROVIDING THAT THE PROPOSED WORK OR IMPROVEMENT SHALL BE PERFORMED UNDER ARIZONA REVISED STATUTES TITLE 48, CHAPTER 4, ARTICLE 2, AND AMENDMENTS THERETO AND DECLARING AN EMERGENCY. RESOLUTION NO. 06-16 RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA DECLARING ITS INTENTION TO ORDER THE IMPROVEMENTS OF A CERTAIN AREA WITHIN THE CORPORATE LIMITS OF THE CITY AND CREATING AN IMPROVEMENT DISTRICT KNOWN AS THE CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 1028, VISTANCIA PARCEL C30, PHASE 1 (DESERT BREEZE AT TRILOGY AT VISTANCIA); PROVIDING THAT THE COST OF THE MAINTENANCE OF THE LANDSCAPING INCLUDED WITHIN, NEAR, AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, SHALL BE ASSESSED UNDER THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 2, ARIZONA REVISED STATUTES, AS AMENDED; AND DECLARING AN EMERGENCY. Approved the Petition of Formation and adopt RES. 06-15 intention and ordering formation of proposed Maintenance Improvement District No. 1028, Vistancia Parcel C30, Phase 1, located south of Blue Sky and west of El Mirage Road; and adopted RES. 06-16 ordering the work within the proposed Maintenance Improvement District. 9C Maintenance Improvement District No. 206, Vistancia Parcel C30, Phase 2, Blue Sky and El Mirage Road RESOLUTION NO. 06-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEORIA, ARIZONA, DECLARING ITS INTENTION TO CREATE AN IMPROVEMENT DISTRICT TO MAINTAIN LANDSCAPING INCLUDED WITHIN, NEAR AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, FOR MAINTENANCE WITHIN AN AREA IN THE CITY OF PEORIA AS DESCRIBED HEREIN; ADOPTING PLANS FOR CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 206, VISTANCIA PARCEL C30, PHASE 2 (DESERT BREEZE AT TRILOGY AT VISTANCIA), AS MORE PARTICULARLY DESCRIBED HEREIN, AND DECLARING THE WORK OR IMPROVEMENT TO BE OF MORE THAN LOCAL OR ORDINARY PUBLIC BENEFIT, AND THAT THE COST OF SAID WORK OR IMPROVEMENT SHALL BE ASSESSED UPON A CERTAIN DISTRICT, AND PROVIDING THAT THE PROPOSED WORK OR IMPROVEMENT SHALL BE PERFORMED UNDER ARIZONA REVISED STATUTES TITLE 48, CHAPTER 4, ARTICLE 2, AND AMENDMENTS THERETO AND DECLARING AN EMERGENCY. RESOLUTION NO. 06-18 RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA DECLARING ITS INTENTION TO ORDER THE IMPROVEMENTS OF A CERTAIN AREA WITHIN THE CORPORATE LIMITS OF THE CITY AND CREATING AN IMPROVEMENT DISTRICT KNOWN AS THE CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 206, VISTANCIA PARCEL C30, PHASE 2 (DESERT BREEZE AT TRILOGY AT VISTANCIA); PROVIDING THAT THE COST OF THE MAINTENANCE OF THE LANDSCAPING INCLUDED WITHIN, NEAR, AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, SHALL BE ASSESSED UNDER THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 2, ARIZONA REVISED STATUTES, AS AMENDED; AND DECLARING AN EMERGENCY. Approved the Petition of Formation and adopted RES. 06-17 intention and ordering formation of proposed Maintenance Improvement District No. 206, Vistancia Parcel C30, Phase 2, located south of Blue Sky and west of El Mirage Road; and adopted RES. 06-18 ordering the work within the proposed Maintenance Improvement District. 10C Maintenance Improvement District Nos. 1025 and 1044, Retention Basin Improvement, Bedford Village I and II, 83rd Avenue and Shangri La Road RESOLUTION NO. 06-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEORIA, ARIZONA, DECLARING ITS INTENTION TO CREATE AN IMPROVEMENT DISTRICT TO MAINTAIN LANDSCAPING INCLUDED WITHIN, NEAR AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, FOR MAINTENANCE WITHIN AN AREA IN THE CITY OF PEORIA AS DESCRIBED HEREIN; ADOPTING PLANS FOR CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 1025 (BEDFORD VILLAGE I RETENTION BASIN) AS MORE PARTICULARLY DESCRIBED HEREIN, AND DECLARING THE WORK OR IMPROVEMENT TO BE OF MORE THAN LOCAL OR ORDINARY PUBLIC BENEFIT, AND THAT THE COST OF SAID WORK OR IMPROVEMENT SHALL BE ASSESSED UPON A CERTAIN DISTRICT, AND PROVIDING THAT THE PROPOSED WORK OR IMPROVEMENT SHALL BE PERFORMED UNDER ARIZONA REVISED STATUTES TITLE 48, CHAPTER 4, ARTICLE 2, AND AMENDMENTS THERETO. RESOLUTION NO. 06-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEORIA, ARIZONA, DECLARING ITS INTENTION TO CREATE AN IMPROVEMENT DISTRICT TO MAINTAIN LANDSCAPING INCLUDED WITHIN, NEAR AND ADJACENT TO A PARKWAY AND RELATED FACILITIES TOGETHER WITH APPURTENANT STRUCTURES AS SHOWN ON THE PLANS, FOR MAINTENANCE WITHIN AN AREA IN THE CITY OF PEORIA AS DESCRIBED HEREIN; ADOPTING PLANS FOR CITY OF PEORIA MAINTENANCE IMPROVEMENT DISTRICT NO. 1044 (BEDFORD VILLAGE II RETENTION BASIN) AS MORE PARTICULARLY DESCRIBED HEREIN, AND DECLARING THE WORK OR IMPROVEMENT TO BE OF MORE THAN LOCAL OR ORDINARY PUBLIC BENEFIT, AND THAT THE COST OF SAID WORK OR IMPROVEMENT SHALL BE ASSESSED UPON A CERTAIN DISTRICT, AND PROVIDING THAT THE PROPOSED WORK OR IMPROVEMENT SHALL BE PERFORMED UNDER ARIZONA REVISED STATUTES TITLE 48, CHAPTER 4, ARTICLE 2, AND AMENDMENTS THERETO. Adopted RES. 06-19 and RES. 06-20 intention and ordering formation of proposed Maintenance Improvement District Nos. 1025 and 1044 for the improvement of the retention basins located in Bedford Village I and II, located at 83rd Avenue and Shangri La Road. 11C Void 12C Deeds and Easements, Various Locations RESOLUTION NO. 06-21 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA ADOPTING A RESOLUTION FORMALLY ACCEPTING DEEDS AND EASEMENTS FOR PROPERTY RIGHTS CONVEYED TO THE CITY OF PEORIA. Adopted RES. 06-21 accepting deeds and easements for various real property interests acquired by the City and previously recorded by the Maricopa County Recorder’s Office. 13C Designate Roadways, Establish Rights-of-Way, Various Locations RESOLUTION NO. 06-22 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA ADOPTING A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF PUBLIC STREETS, TO BE OPENED AND MAINTAINED BY THE CITY. Adopted RES. 06-22 designating various real properties to be used as City roadways and authorized the establishment of public rights-of-way to be opened and maintained by the City as a public street. REGULAR AGENDA UNFINISHED BUSINESS 14R Rezoning, Jomax Road and Lake Pleasant Parkway (Item 29R, November 15, 2005; Item 63R, December 13, 2005) ORDINANCE NO. 05-67B AN ORDINANCE OF THE CITY OF PEORIA, MARICOPA COUNTY, ARIZONA ZONING PROPERTY FROM SR-43 (SUBURBAN RANCH) ZONING DISTRICT TO A PAD (PLANNED AREA DEVELOPMENT) ZONING DISTRICT; AMENDING THE ZONING MAP AND PROVIDING FOR AN EFFECTIVE DATE. David Nakagawara, Acting Director, Community Development, presented an overview of the proposed ordinance to rezone approximately 44 acres of property from SR-43 (Suburban Ranch) to PAD (Planned Area Development) zoning district. Mr. Nakagawara reported that the development originally proposed consisted of 57 lots at build out on the 44 acres site. A total of 70 lots could have been established on the property. After meeting with adjacent property owners, the developer has agreed to limit the total number of lots to 54. Mr. Nakagawara stated that the Planning and Zoning Commission recommended unanimous approval with ten conditions. In response to questions from Council, Mr. Nakagawara advised that the average lot size is 14,500 square feet. The northern portion of the area is designated Residential Estate which results in 1.28 dwelling units per acre; the southern portion has 1.04 dwelling units per acre (13 dwellings). Mr. Nakagawara reported that the slight increase in density in the northern area is justified based on other General Plan goals which were met. He noted that the useable open space requirement was exceeded. The retention basin will be improved to provide passive open space areas and public equestrian trails. Mike Curley, representing Desert Cove Homes, described the meetings with the neighbors and the developer’s efforts to conform to all legal requirements for the Querencia subdivision. Mr. Curley summarized that the developer has designed lots that average 20,000 square feet from the 12,000 square foot minimum required. There is 36% open space planned including buttes, rocks, and washes. The developer has exceeded the requirements of the Hillside Ordinance which requires 8.5 acres by disturbing only 3.5 acres of the project. The changes that the developer has made have eliminated any touch with the existing homes except for one lot. In addition, the developer has created a buffer for the adjacent properties. Mr. Curley described the developer’s conservation efforts and efforts to preserve the environment. He advised that the development could have been designed to go up the hillside, but the developer chose to allow smaller lots to preserve topographic features of the property while maintaining 36% open space. Mr. Curley advised that regarding the concern that there was some discussion with the developer about 36,000 square foot lots, Mr. Curley stated that his client has advised him that the discussion did not occur in reference to this property. He added that the discussion was in reference to a 52 acre parcel during the initial stage but was a different transaction. Mr. Curley stated that the neighbors have asked for a second access from the subdivision rather than using Lake Pleasant Parkway. In response to questions from Council, Mr. Curley explained that he did not have the exact number of acre lots, but could report that the average was 20,600 square feet - a little less than an acre. Mr. Curley stated that the development would not include significant walls but much would be left open to allow for better views. Debbie Wahl, a neighboring resident, spoke in opposition to the planning request. She noted that when she bought her home, the zoning was for one dwelling per acre. Ms. Wahl stated that the new subdivision should match the surrounding subdivisions. Luci Moore, a neighboring resident, stated that the proposed subdivision is next to her home. She sited concerns for her children’s safety, her family’s desire to experience the outdoors and natural setting, obstructed views, and decreased home values for current residents. Ms. Moore showed pictures depicting brick walls that may be built. Ms. Moore also referenced the half-mile traffic backup during peak times. She added that 114 vehicles may exit in her neighborhood. The existing neighborhood has private, unpaved roads which will cause a dust problem with increased traffic. Lori Prodan, a neighboring resident, explained that she owned the lot on the other side of Ms. Moore. She stated that she did not receive the original hearing notification. Ms. Prodan spoke in opposition siting traffic problems, noise and lighting issues, and density objections. The majority of homes in the area were on 2.5 acres. She also stated that walls would be offensive as the area has no lights, walls, and allows for open space. Ms. Prodan noted the unresolved problem with the traffic existing on Lake Pleasant Parkway where only a right turn is permitted. Connie Coronado, a neighboring resident, stated that she had moved to her community for privacy and was opposed to the rezoning. She had privacy issues and was concerned with lights and additional roof tops. She noted that her property was built on private roads. J.D. Campbell, a local resident, expressed opposition and stated that this was a State Land community. He noted that neighboring parcels showed SR-43 zoning with an average 30,000 square foot lot. Mr. Campbell stated that some of the acre lots on the property cannot be built upon. Mr. Curley advised that the average lot would be 20,000 square feet. Mr. Campbell reported that the open space on the property was not practical to build upon. He noted that 12,000 square feet was the average lot size. Houses will “be squished.” Mr. Campbell also stated that there were a large number of protest letters received. He added that people across the street have 35,000 square foot lots and the neighbors would be acceptable to that zoning. James Charters, a neighboring resident, spoke in opposition siting traffic problems. He reported that one neighbor in order to slow traffic down used a bulldozer to make a hole in the road. Mr. Charter stated that he did not want the area to become like North Scottsdale. He emphasized traffic and openness issues. Steve Campbell, a local resident, disputed the average lot size if the open space was excluded from the equation. He noted that compliance with the Hillside Ordinance was good, but Peoria has other restrictions. Mr. Campbell stated that the property was bought as R-43. Mr. Campbell stated that he had it in writing that the property would be developed as R-35. He was originally excited about the large lots and great hillside. The property would be good for one acre lots. Mr. Campbell asked the Council to deny the rezoning request. Carla Ward, a neighboring resident, stated her opposition. She explained the money and effort that her family put into their home to have a large lot with a view. Open space will no longer be visible on the east side of the development. Her concerns were for her children and the traffic on the dirt road. She asked if the City would pave the roads. Ms. Ward added that smaller lots would reduce their property values. Tracy Kopp, a local resident, stated that he was outside of the notification area. He stated that City Staff did a good job with Cibola Vista; there was no dust or traffic from that project. He explained that there will be a dust problem with vehicles existing through their neighborhood. Jane and Gary Olson, neighbors, did not speak but listed their opposition to the rezoning. Richard Kirkpatrick, a neighboring resident, spoke in opposition. He explained that the zoning was not appropriate based on other zoning in the area. Mr. Curley, representing the developer, summarized his client’s position. He asked Council to keep in mind that there will only be 54 homes on 44 acres. The homes will be 3,400 to 3,500 square foot homes. Only one home will touch the east boundary of the property. The development was purposely planned to keep away from adjacent properties. The new development will be on the other side of the buffer. He stated that Peoria should be applauded for their large lot development. North Scottsdale does not have this many large lot areas. Mr. Curley disputed that this was not the area for moderate lot size. He noted that the developer changed the site plan and created a building envelop to permit hillside areas to be created. This is a responsible way to treat this type of development. Mr. Curley stated that to avoid this type of argument, Peoria established the General Plan. The General Plan is a tool to judge property and the General Plan allows 12 to 14 more lots on this property. The General Plan is appropriate here. Ruby Schantz and Sam Field, neighboring residents, did not wish to speak but noted their opposition. Discussion ensued about the traffic impact of the new development to the existing subdivision. David Moody, City Engineer, advised that people were judging the development based on current conditions. He described the access on Lake Pleasant Parkway and stated that conditions would be different once construction on the Parkway was completed. In response to questions from Council, Mr. Moody reported that individuals could go through the neighborhood but his professional advice would be to use Jomax and then go south on Lake Pleasant Parkway or use the new u-turn lane once it is completed. Mr. Moody added that 95th Avenue is a public road and could be paved although he was not sure if that was in the best interest. The road is currently for fire access only. Mr. Moody explained that he would have to check on the traffic patterns and advise Council. Councilmember Leone asked for clarification about the total number of lots in the proposed subdivision. Mr. Curley reported that there are 54 lots. Councilmember Evans stated that the neighborhood to the east of the development is unique to Peoria because of the large lots. The roads should not be traveled by a lot of people. Councilmember Evans added that the planned area to the north of this property has 35,000 square foot lots. A solution to the traffic problem should be found. Councilmember Evans reported that she would vote against the request because no solution had been presented for the traffic problems. Councilmember Leone stated that he appreciated the area but because of the walls of the subdivision, he would vote against the zoning request. Councilmember Carlat stated that she lived in the area and understood the concerns. She stated that the subdivision was very attractive and conformed to the General Plan. She would vote for approval. In response to questions from Councilmember Dennis, Mr. Moody reported that 95th Avenue was an emergency access road on the east side of the property that could become a primary access road. Mr. Moody advised that traffic could turn right to Jomax for 95 percent of the traffic. He added that the subdivision makes sense without this additional access. Councilmember Hunt stated that she had looked at the plan and was familiar with the area as her extended family had lived in the area. She advised that the developer was not putting in small track homes or HUD block walls. This developer had compromised over and over. This development will be a model hillside development. Councilmember Hunt emphasized that the fears were unwarranted. Peoria will continue to grow. Vice Mayor Barrett asked if when the adjoining State Land is developed, would the City pave 95th Avenue. Mr. Moody responded that the City would eventually pave the road. Vice Mayor Barrett asked if the developer would be opposed to setting aside escrow money now so that when the State Land is developed, the money would be available for road paving. Mr. Curley advised Council that the developer would have no problem with escrowing the money to cover the paving. Motion was made by Vice Mayor Barrett, seconded by Councilmember Hunt, to concur with the Planning and Zoning Commission’s recommendation and adopt ORD. 05-67B rezoning approximately 44 acres, located south of the southeast corner of Jomax Road and Lake Pleasant Parkway from Suburban Ranch (SR-43) to Planned Area Development (PAD) with the stipulation that the developer would escrow funds for the future paving of 95th Avenue. Upon vote, the motion passed by a vote of four to two with Councilmember Evans and Councilmember Leone voting “no.” (Z05-08) NEW BUSINESS 15R Community Theater Financing RESOLUTION NO. 0623 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF PEORIA, ARIZONA, AUTHORIZING THE EXECUTION AND DELIVERY OF A SERIES 2006 GROUND LEASE, A SERIES 2006 CITY LEASE AND A SERIES 2006 CONTINUING DISCLOSURE AGREEMENT; APPROVING THE EXECUTION AND DELIVERY BY PEORIA MUNICIPAL DEVELOPMENT AUTHORITY, INC. OF SUCH GROUND LEASE, A FIRST SUPPLEMENT TO TRUST INDENTURE AND A DTC LETTER OF REPRESENTATIONS, AS APPLICABLE; APPROVING AN OFFICIAL STATEMENT AND THE CIRCULATION THEREOF; APPROVING THE ISSUANCE OF NOT TO EXCEED $7,000,000 AGGREGATE PRINCIPAL AMOUNT OF PEORIA MUNICIPAL DEVELOPMENT AUTHORITY, INC. REVENUE BONDS, SERIES 2006; DELEGATING TO THE CHIEF FINANCIAL OFFICER OF THE CITY THE AUTHORITY TO DETERMINE VARIOUS TERMS WITH RESPECT TO THE SERIES 2006 BONDS AND THE SALE THEREOF; PROVIDING FOR THE TRANSFER OF CERTAIN MONEYS FOR THE PAYMENT THEREOF AND MAKING CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT THERETO; AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION AND DECLARING AN EMERGENCY. Brent Mattingly, Finance Director, summarized the request to fund the Peoria Center for the Performing Arts project by the issuance of bonds. Mr. Mattingly advised that the revised financing plan was approved by Council at the November 15, 2006 meeting. The $12.5 million financing plan included borrowing $6.8 million through the Peoria Municipal Development Authority (MDA). The estimated debt service is planned to be paid through an annual appropriation from the Half Cent Sales Tax Fund. The MDA Board met on December 14, 2005 to provide members an overview of the community theater project. On January 9, 2006, the MDA Board met again and unanimously approved the proposed financing. Mr. Mattingly advised that the resolution before Council authorizes a lease/lease back structure for the theater property; authorizes a Continuing Disclosure Agreement and approves a Supplement Trust Indenture; approves the issuance of the bonds in an amount not to exceed $7,000,000; approves an Official Statement to potential buyers and the distribution of that document ; and delegates authority to the Chief Financial Officer, John Wenderski, to handle matters pertaining to the sale. Mr. Mattingly continued that the documents were reviewed by the City Attorney’s Office and the City’s outside bond counsel, Greenberg Traurig, LLC. Motion was made by Councilmember Hunt, seconded by Councilmember Carlat, to adopt RES. 06-23 to approve the financing of the City of Peoria Community Theater by the Peoria Municipal Development Authority through the issuance of not than more than $7,000,000 of revenue bonds. Upon vote, the motion carried unanimously. (LCON00906) (LCON00906A) and (LCON00906B) 16R Contract Amendment, DJN Eagle Mountain LLC (Glimcher Ventures Southwest), Parke West, Loop 101 and Northern Avenue Steve Prokopek, Economic Development Director, advised that a new State Law, A.R.S. § 9-500.11, requires the City Council adopt a notice of intent 14 days prior to the Council taking action of any development agreement between the City and a private developer. Mr. Prokopek stated that the agreement amendments will include modifying the improvement district for frontage road improvements as there is uncertainty regarding the timing of Arizona Department of Transportation improvements along Loop 101 along the frontage road. The agreement amendments would remove the restriction on sales tax reimbursements to the developer until frontage road improvements are completed. Mr. Prokopek advised that he would come back before Council later in February to discuss the specific development agreement. Discussion ensued regarding dividing the improvement district into two districts. Mr. Prokopek advised that costs on the frontage road have exceeded projections by 75 percent. Mr. Prokopek reported that the request before Council was only to approve the notice of intent. Steve Kemp, City Attorney, clarified that the purpose of the notification is to give the public notice so that they could go to the City Clerk to get more information related to any agreement. The purpose of this agenda item is to discuss the notice and not the specifics of the agreement. Motion was made by Vice Mayor Barrett, seconded by Councilmember Dennis, to adopt a Notice of Intention to enter into an amendment to the development agreement that includes retail sales tax reimbursements, with DJN Eagle Mountain LLC (Glimcher Ventures Southwest) for the Parke West project located at the Loop 101 and Northern Avenue. Upon vote, the motion carried unanimously. CALL TO THE PUBLIC: (NON-AGENDA ITEMS) There were no further comments from anyone present. Reports from the City Manager: Possible Methamphetamine Related Ordinance Terry Ellis, City Manager, reviewed issues surrounding over-the-counter cold medicines and a possible Methamphetamine related ordinance. He advised that the Legislature was considering a statewide ordinance which would preempt any local ordinance. Mr. Ellis stated that most pharmacies in our community have limited public access to these products. He suggested that Council discuss adopting an ordinance which City Staff have already drafted if the Legislature does not act in favor of a statewide ordinance. This will eliminate confusion. Discussion ensued about the amount of cold products that are needed to produce methamphetamine. Chief Leonardo confirmed that bleach was also a related product that was readily available. Start of Pentagon Channel Grady Miller, Communications and Public Affairs Director, gave an overview of the start of the Pentagon programming on Channel 98. The goal was to have programming 24 hours a day, seven days a week. Through the efforts of John Schell, Intergovernment Affairs Director; Cox Cable; and the Peoria Channel 11 Staff; the Pentagon Channel is now available. We have a large population of retired and active military families from Luke Air Force Base in our City. This is good information for our citizens. Channel 11 also now airs approximately 20 hours of Pentagon Channel programming. Peoria now hosts a Safety Channel, Education Channel, Pentagon Channel, and Channel 11. Mr. Miller encouraged everyone to tune into the programs. Reports from City Council: Councilmember Dennis stated that she had been invited by the Peoria Rotary to distribute dictionaries to students at the Ira Murphy School. Councilmember Dennis encouraged the public to join civic organizations like the Peoria Rotary. Councilmember Leone reported on the grand opening of a new Chase Bank Branch at a local Fry’s Store. He also reported that at a recent Fundraiser in Tolleson $9,000 was raised for Officer Weigt and his family. Councilmember Leone reported that the liquor license application for Hot Tamales in Peoria was withdrawn by the applicant. Councilmember Hunt reported that she was the Mistress of Ceremonies at a successful Martin Luther King Day event sponsored by the Northwest Black History Committee. Reports from the Mayor: Vice Mayor Barrett complimented City Attorney Steve Kemp and Mayor Keegan for their testimony at the Liquor Board Hearing for Hot Tamales. Vice Mayor Barrett reported that Councilmember Dennis, Councilmember Evans, Chief Leonardo and he were also present. Vice Mayor Barrett also encouraged the public to see the current Theater Works production, “Under the Lentil.” Vice Mayor Barrett also welcomed the Arizona Broadway Dinner Theatre to Peoria. ADJOURNMENT: Being no further business to come before the Council, the meeting was duly adjourned at 8:55 p.m. ______________________________________ John C. Keegan, Mayor ATTEST: ______________________________________ Mary Jo Kief, City Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Meeting of the City Council of Peoria, Arizona held on the 17th day of January, 2006. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 7st day of March, 2006. (Seal) ______________________________________________ Mary Jo Kief, City Clerk