summarized minutes scottsdale city council regular meeting tuesday ...

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Feb 16, 2010 - CALL TO ORDER. Mayor W.J. “Jim” ... Request: Consider forwarding a recommendation to the Arizona Depa
SUMMARIZED MINUTES SCOTTSDALE CITY COUNCIL REGULAR MEETING TUESDAY, FEBRUARY 16, 2010

CITY HALL KIVA 3939 N. DRINKWATER BOULEVARD SCOTTSDALE, AZ 85251

CALL TO ORDER Mayor W.J. “Jim” Lane called to order a Regular Meeting of the Scottsdale City Council at 5:06 P.M. on Tuesday, February 16, 2010 in the City Hall Kiva. ROLL CALL Present:

Mayor W.J. “Jim” Lane Vice Mayor Lisa Borowsky Councilmembers Wayne Ecton, Suzanne Klapp, Robert Littlefield, Ron McCullagh, and Tony Nelssen

Also Present: Acting City Manager David Richert City Attorney Bruce Washburn City Clerk Carolyn Jagger PLEDGE OF ALLEGIANCE – Daisy Scout Troop No. 1681 INVOCATION – Pastor Rick Lawrence, Bethany Lutheran Church CITY MANAGER’S REPORT – None PRESENTATIONS/INFORMATION UPDATES Mayor Lane announced: • • •

NOTE:

The State of the City Address is scheduled for 5:00 P.M., Thursday, February 18, 2010 at the Scottsdale Center for the Performing Arts. The Parada del Sol Parade is Saturday, February 20, 2010, and participants are “thinking pink” in support of the fight against breast cancer. The 55th Annual Scottsdale Arabian Horse Show is being held through February 21, 2010 at WestWorld. IN ACCORDANCE WITH PROVISIONS OF THE ARIZONA REVISED STATUTES THE SUMMARIZED MINUTES OF CITY COUNCIL MEETINGS ARE NOT VERBATIM TRANSCRIPTS. THESE MINUTES ARE INTENDED TO BE AN ACCURATE REFLECTION OF ACTION TAKEN BY THE CITY COUNCIL. DIGITAL RECORDINGS OF CITY COUNCIL MEETINGS ARE ON FILE IN THE CITY CLERK’S OFFICE.

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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MINUTES SPECIAL MEETINGS January 26, 2010, 3:30 P.M. January 26, 2010, 4 P.M.

REGULAR MEETINGS January 26, 2010

COUNCILMAN ECTON MOVED TO APPROVE THE 3:30 P.M. AND 4 P.M. JANUARY 26, 2010 SPECIAL MEETING MINUTES, AND THE JANUARY 26, 2010 REGULAR MEETING MINUTES. COUNCILMAN MCCULLAGH SECONDED THE MOTION, WHICH CARRIED 7/0. PUBLIC COMMENT Lois Katzin, Scottsdale resident, expressed concern regarding a fine imposed by City Court for forgetting to display a handicap placard. Jerry Lewkowitz, representing the Thunderbirds, invited the Council and public to attend the 75th Annual Waste Management Phoenix Open and thanked City staff for their support. ITEM 20 WAS REMOVED FROM THE CONSENT AGENDA. CONSENT AGENDA 1.

Walgreens No. 01950 Liquor License (1-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 10135 E. Via Linda Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

2.

Walgreens No. 02599 Liquor License (2-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 7337 N. Via Paseo Del Sur Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

3.

Walgreens No. 03163 Liquor License (3-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 3420 N. Scottsdale Road Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

4.

Walgreens No. 09262 Liquor License (4-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner.

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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Location: 8469 E. McDonald Drive Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected] 5.

Walgreens No. 06534 Liquor License (5-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 20631 N. Scottsdale Road Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

6.

Walgreens No. 03177 Liquor License (6-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 7011 E. Shea Boulevard Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

7.

Walgreens No. 03766 Liquor License (7-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 34402 N. Scottsdale Road Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

8.

Walgreens No. 05890 Liquor License (8-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 11250 E. Via Linda Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

9.

Walgreens No. 04138 Liquor License (9-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 7923 E. McDowell Road Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

10.

Walgreens No. 04507 Liquor License (10-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 15025 N. Thompson Peak Parkway Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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11.

Walgreens No. 06729 Liquor License (11-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 10 (beer and wine store) liquor license for a new location with an existing owner. Location: 10929 E. Dynamite Boulevard Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

12.

Pure Sushi Bar and Dining Liquor License (12-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 12 (restaurant) liquor license for an existing location with a new owner. Location: 20567 N. Hayden Road Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

13.

Blue 32 Sports Grill Liquor License (13-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 12 (restaurant) liquor license for a new location and owner. Location: 7293 N. Scottsdale Road, Suite 107 Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

14.

Pomo Pizzeria Enoteca Liquor License (15-LL-2010) Request: Consider forwarding a recommendation to the Arizona Department of Liquor Licenses and Control for a series 12 (restaurant) liquor license for an existing location and owner. Location: 6166 N. Scottsdale Road, Suite 701 Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

15.

Dos Diablos Conditional Use Permit (36-UP-2009) Item No. 15 has been moved from Consent to the Regular Agenda.

16.

Charles Miller House Historic Preservation Overlay Rezoning (11-ZN-2009 and 3-HP-2009) Requests: 1. Adopt Ordinance No. 3886 approving a rezoning from Downtown/Office Commercial Type 2 District Downtown Overlay (D/OC-2 DO) to Downtown/Office Commercial Type 2 District Downtown Overlay Historic Property (D/OC-2 DO HP), on a .06± acre site. 2. Find, consistent with the Historic Preservation Commission’s recommendation, that the eligibility criteria for historic preservation designation have been met. Location: 6938 E. 1st Street (a portion of Charles Miller Square) Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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17.

Fire Station Nos. 605 and 610 Emergency Generator Systems Construction Bid Award Request: Adopt Resolution No. 8198 authorizing Construction Bid Award IFB 10PB044 with AJP Electric, the lowest responsive bidder, at the bid amount of $88,888.88, to remove the existing emergency stand-by generator system from Fire Station 610 and reinstall it in Fire Station 605, and to purchase and install an emergency stand-by generator system for Fire Station 610. Staff Contact(s): Dan Worth, Public Works Executive Director, 480-312-5555, [email protected]

18.

General Plan Economic Analysis Agreement Request: Adopt Resolution No. 8207 authorizing Contract No. 2010-029-COS with Applied Economics in the amount of $114,425 for a General Plan Economic Analysis. Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

Mayor Lane opened public testimony. Michael Kelly, Scottsdale resident, said an economic analysis would assist staff in developing an updated General Plan. He encouraged the Council to approve the agreement. Mayor Lane closed public testimony. 19.

2010 Federal Legislative Program Request: Approve the City of Scottsdale 2010 Federal Legislative Program. Staff Contact(s): Brad Lundahl, Acting Government Relations Director, 480-312-2683, [email protected]

20.

General Obligation and Municipal Property Corporation Bonds

ITEM 20 WAS REMOVED FROM THE CONSENT AGENDA FOR SEPARATE ACTION (SEE BELOW). MOTION AND VOTE – CONSENT AGENDA

COUNCILMAN ECTON MOVED TO APPROVE CONSENT AGENDA ITEMS 1 THROUGH 19. COUNCILWOMAN KLAPP SECONDED THE MOTION, WHICH CARRIED 7/0. (Item 20 was removed from the Consent Agenda for further discussion.) 20.

General Obligation and Municipal Property Corporation Bonds Requests: 1. Adopt Resolution No. 8210 providing for the competitive sale and issuance of $50.8 million principal amount General Obligation Bonds; providing the terms concerning the bonds; authorizing the City Treasurer to accept the proposal for the purchase of the bonds; appointing an initial bond registrar and paying agent for the bonds; and declaring an emergency.

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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2. Adopt Resolution No. 8211 approving the competitive sale and issuance by the City of Scottsdale Municipal Property Corporation of Excise Tax Revenue Bonds in an amount not to exceed $75 million for water and sewer capital projects; approving the terms concerning the bonds; authorizing the City Treasurer to accept the proposal for the purchase of the bonds on behalf of the Municipal Property Corporation; appointing an initial bond registrar and paying agent for the bonds; and declaring an emergency. Staff Contact(s): David N. Smith, Interim City Treasurer, 480-312-2364, [email protected] Discussion: • Council asked why the two resolutions were deemed “emergencies”. Interim City Treasurer David Smith explained that the emergency clause is requested so that the City may avoid the customary 30 days for a resolution to take effect, and to allow the City to go to the bond market with the bond requests in an expeditious manner. • Scott Ruby, bond counsel, stated that the bond market is more favorable to the parties when they are able to conduct the financial transactions quickly. He said the City distributes a preliminary official statement for potential investors’ review approximately three weeks prior to the bond sale. The emergency clause restricts the chance of a referendum being filed against the resolution, which would negatively affect the sale of the bonds. • City Attorney Bruce Washburn advised that an emergency can encompass matters that can have substantial fiscal savings for the City, and that the flexibility to issue those bonds immediately qualifies as an emergency. He verified that adoption of the resolutions requires the approval of at least 75 percent of the Councilmembers. • Council asked if every bond issuance is declared to be an emergency. Finance Manager Lee Guillory replied that every bond resolution adopted by the Council for the last six years has included an emergency clause. Mr. Ruby added that the City typically sells bonds using this procedure. He believes it is important to use the emergency clause to generate the best bond rates. • Some Councilmembers expressed concern that the emergency clause was being interpreted inaccurately, and cited the lack of a reference to the preservation of public peace, health, and safety. Mr. Washburn reaffirmed that the clause legally qualifies as an emergency because of the potential for fiscal savings to the City. He also pointed out that, although the Council has the lawful authority to enact the clause, they are not obligated to do so. • Council questioned whether the provisions of the emergency clause can be changed by ordinance. Mr. Washburn advised that the emergency clause provisions are a matter of State law; therefore, the Council does not have authority to change it. MOTION – ITEM 20 COUNCILMAN ECTON MOVED TO ADOPT RESOLUTION NO. 8120 AND RESOLUTION NO. 8211. COUNCILMAN MCCULLAGH SECONDED THE MOTION. Discussion: • Some Councilmembers suggested that staff develop alternative ways to issue bonds without using an emergency clause.

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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VOTE ON MOTION – ITEM 20 THE COUNCIL VOTE ON THE MOTION TO ADOPT RESOLUTION NO. 8120 AND RESOLUTION NO. 8211 CARRIED 7/0. REGULAR AGENDA (Item 15 Moved from Consent Agenda) 15.

Dos Diablos Conditional Use Permit (36-UP-2009) Request: Adopt Resolution No. 8206 approving a Conditional Use Permit for live entertainment for an existing restaurant in a 6,875± square foot building within an existing shopping center, with Central Business, Environmentally Sensitive Lands (C-2 ESL) zoning, and finding that the conditional use permit criteria have been met. Location: 32527 N. Scottsdale Road Staff Contact(s): Connie Padian, Planning, Neighborhood, and Transportation Acting Executive Director, 480-312-2664, [email protected]

Senior Planner Louisa Garbo gave a PowerPoint presentation (attached) giving background information on the application for the conditional use permit for live entertainment. Applicant Theresa Morse reported that letters were sent to residents notifying them of the application in October 2009. The applicant did not receive any comments in opposition to the live entertainment until after the January 2010 Planning Commission meeting. Ms. Morse said an open house for neighborhood residents was held on February 3, 2010. Ms. Morse stated that the owners have followed all City guidelines, and requested that they be granted the conditional use permit to allow live entertainment three days a week. Applicant David Stone said he has personally walked the perimeter of the shopping center and never heard music coming from Dos Diablos. He said he is willing to work, within reason, with the neighbors to address their concerns. Mayor Lane opened public testimony. The following individuals spoke in opposition of the application: Robert Cappel, Scottsdale resident and President of Board of the Directors of Winfield Bill Newell, Scottsdale resident Richard Hetke, Scottsdale resident David Bethune, Scottsdale resident Ruth Isaac, Scottsdale resident Gary James, Scottsdale resident Viseanne Casale, Scottsdale resident Lou Napoli, Scottsdale resident James Patterson, Scottsdale resident, Las Piedros at Savano Homeowners Association Wynn Paoletti, Scottsdale resident Joyce Crowe, Scottsdale resident Ira Crider, Scottsdale resident Edith Crider, Scottsdale resident David Chinsky, Scottsdale resident

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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Mayor Lane closed public testimony. Applicant David Stone said he had not received any noise complaints from the neighbors. He reiterated that he does not want to cause problems with the neighbors and he will abide by the law. Discussion: • Council asked if the conditional use permit regulated live entertainment performances; for example, the type of music allowed. Acting Current Planning Director Tim Curtis replied that the conditional use permit does not regulate the categories of performances, and performances could change from one night to the next. • Council asked if conditional use permits are issued to the property, rather than the owner(s). Mr. Curtis verified that conditional use permits are issued to the property. If the property classification changes from a restaurant to a nightclub/bar, a conditional use permit for a bar would be required, rather than a conditional use permit for live entertainment. • Some Councilmembers expressed concern that the location is not suitable for live entertainment, citing neighborhood ambient noise levels, the unique design of the Summit Shopping Center, and resident concerns of increased traffic, lights, and security issues. MOTION – ITEM 15 COUNCILMAN ECTON MOVED TO CONTINUE ITEM 15 FOR THIRTY DAYS. COUNCILMAN LITTLEFIELD SECONDED THE MOTION. Discussion: • Several Councilmembers encouraged the applicant and neighbors to work together to seek a compromise on the hours of operation for live entertainment. • Council asked for clarification on food service and liquor license requirements. Applicant David Stone said Dos Diablos serves food until approximately 11:00 PM, or until patrons stop ordering food. He reported that the sale of liquor is less than 40 percent of all sales, which is within the established guidelines for a restaurant liquor license. Mr. Stone added that the lease agreement with the Summit Shopping Center requires Dos Diablos to operate using a restaurant liquor license. • Council noted that the Planning Commission found that the applicant met all requirements for a conditional use permit, and asked if the Council had discretion to deny the permit. City Attorney Bruce Washburn said the Council could deny the permit. He explained that the Council is charged with determining whether the criteria for the conditional use permit had been met, and if the use is reasonably compatible with the types of uses in the surrounding areas. • Some Councilmembers expressed concern that the applicants and neighbors would not be able to reach a compromise on the hours of operation for live entertainment. • Several Councilmembers believe this is more than a noise issue, and cited the neighbors’ comments on traffic and maintaining the character of the area. • It was pointed out that noise is a Citywide issue, and support was expressed for a Citywide noise ordinance. • Council asked if there have been reported violations against the owners of Dos Diablos. Mr. Curtis said there is no record of violations, or noise complaints, for the location.

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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VOTE ON MOTION – ITEM 15 THE COUNCIL VOTE ON THE MOTION TO CONTINUE ITEM 15 FOR THIRTY DAYS CARRIED 6/1, WITH COUNCILMAN NELSSEN DISSENTING. 21.

Emergency Ambulance Services Contract Extension Request: Adopt Resolution No. 8215 authorizing Contract Amendment No. 2005-162COS-A3 with Professional Medical Transport Inc., extending the term of the contract for two years, commencing February 17, 2011. Staff Contact(s): William L. McDonald, Fire Chief, 480-312-1880, [email protected]

Chief William McDonald gave a PowerPoint presentation (attached) on the background, system enhancements, emergency response time, EMS delivery partnership, and staff recommendation to extend the terms of the contract. Mayor Lane opened public testimony. The following individuals spoke in opposition to extending the contract, citing lack of transparency, lack of reporting compliance requirements, questions regarding agenda notice and associated contracts: Kyle Moyer, representing Southwest Ambulance Lou Jekel, representing Southwest Ambulance The following individuals spoke in support of extending the contract, citing an open and compliant reporting system, improved emergency response times, real-time reporting procedures, and contractual obligations: Bob Ramsey, Professional Medical Transport, Inc. Pat Cantelme, Professional Medical Transport, Inc. Mayor Lane closed public testimony. Discussion: • Chief McDonald explained the process for awarding the contract to the current ambulance services provider, the subsequent appeal filed by Southwest Ambulance, and the ruling by the Administrative Hearing Judge. He said the performance of Professional Medical Transport, Inc., (PMT) and their relationship with the City are excellent. He asked the Council to take those factors into consideration when awarding the contract. • Chief McDonald said the costs associated with issuing a RFP for a new contract include staff time, hiring consultants to help evaluate bids, the potential for a costly appeal, and the risk of not having a system as good as the one the City has today. • Chief McDonald clarified that Contract No. 2005-162-COS expires on February 17, 2011. This request extends the terms of the contract for two additional years, commencing February 17, 2011. • Council asked if was true that other contracts were associated with Contract No. 2005162-COS. Assistant Fire Chief Steve Randall confirmed that by extending Contract No.

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010





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2005-162-COS, Contract Nos. 2005-163-COS and 2005-164-COS, which run concurrently, would be extended as well. Clarification was sought regarding the reporting compliance requirements and, whether the City had responded to a public records request. Chief McDonald explained that the provider is not required to use the City of Scottsdale dispatchers. PMT uses the City of Phoenix dispatch services, which in turn, provides the City of Scottsdale with the raw data PMT performance reports. Chief McDonald said the public information request sought the compliance reports from PMT. Because the City of Phoenix provides the information regarding PMT service levels, not PMT themselves, staff responded that PMT-generated reports were not available. Assistant Chief Steve Randall added that staff is diligent in its oversight of the contracts and reporting requirements, and expressed confidence that staff can support their findings.

MOTION – ITEM 21 COUNCILMAN LITTLEFIELD MOVED TO ADOPT RESOLUTION NO. 8125 AUTHORIZING CONTRACT AMENDMENT NO. 2005-162-COS-A3 WITH PROFESSIONAL MEDICAL TRANSPORT, INC., EXTENDING THE TERM OF THE CONTRACT FOR TWO YEARS, COMMENCING FEBRUARY 17, 2011. COUNCILWOMAN KLAPP SECONDED THE MOTION. Discussion: • Some Councilmembers spoke in support of the motion, citing PMT’s performance in complying with the provisions of the contract and the Fire Chief’s recommendation. It was also noted that no one has testified that they were unhappy with PMT’s service. • A Councilmember believes that the evaluation criteria used to select the original ambulance service contractor may have changed, and said it would be beneficial for the City to issue a new RFP for ambulance services. • Council asked for clarification on the list of fees provided by Southwest Ambulance, which indicated approximately $16M was owed to the City. Southwest Ambulance Executive Director Roy Ryals said the list of fees was an estimate, compiled by Southwest Ambulance, to demonstrate the penalties that PMT would owe the City, if the City found that PMT was not in compliance with the reporting requirements. • Council asked why the legal papers regarding the case of PMT before the National Labor Relations Board (NLRB) was provided to the Council. Mr. Ryals explained that a Federal judge found PMT in violation of NLRB regulations, and Southwest Ambulance representatives believe the judgment against PMT may negatively affect the City. He acknowledged that the case is on appeal. Chief McDonald said the case does not impact the ambulance services agreement between the City and PMT. • Council asked for clarification of when Contract No. 2005-162-COS-A2 expired. City Attorney Bruce Washburn read the following contract language into the record “extensions must be approved beginning with the fifth year of the contract and must be approved by the Scottsdale City Council.” He said the clearest interpretation is that the contract extension must be approved before the one-year anniversary of the contract. • Council noted that Contract Nos. 2005-163-COS and 2005-164-COS were not agendized for concurrent action, and asked if the contracts should be agendized for future action. Mr. Washburn said it is difficult to do contract interpretation without reviewing the contracts. It is his understanding that the terms of Contract Nos. 2005163-COS and 2005-164-COS are tied to Contract No. 2005-162-COS, and that the

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010





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renewal of Contract No. 2005-162-COS will provide the City with the benefits of all three contracts because they are interlinked. A Councilmember expressed concern about extending the benefits of Contract No. 2005-164-COS, preferring to remove City firefighters from staffing PMT ambulances. Chief McDonald said that the Fire Department has committed to removing City staff from PMT ambulances. A Councilmember requested an independently managed, random sample survey of ambulance customers. He believes it is important to hear how the people using ambulance services feel about the service they received.

VOTE ON MOTION – ITEM 25 THE COUNCIL VOTE ON THE MOTION TO ADOPT RESOLUTION NO. 8125 AUTHORIZING CONTRACT AMENDMENT NO. 2005-162-COS-A3 WITH PROFESSIONAL MEDICAL TRANSPORT, INC., EXTENDING THE TERM OF THE CONTRACT FOR TWO YEARS, COMMENCING FEBRUARY 17, 2011 CARRIED 6/1, WITH COUNCILMAN MCCULLAGH DISSENTING. 21A.

Monthly Financial Update Request: Present a financial summary to City Council as of January 2010. Staff Contact(s): David N. Smith, Interim City Treasurer, 480-312-2364, [email protected]

Interim City Treasurer David Smith gave a PowerPoint presentation (attached) on the January 2010 operating results, sales taxes, personnel services, FY 2009/10 estimates, and FY 2010/11 issues. Discussion: • Council asked for clarification about the Tourism Development Commission (TDC) and Convention and Visitors Bureau (CVB) budget adjustment recommendations. Acting City Manager David Richert explained that the TDC and CVB budget processes are out of sync with the City’s budget cycles. As a result, the TDC and CVB must make commitments on their marketing contracts prior to the City collecting and distributing bed tax funds. Depending upon the vote on the expansion of the percentage of bed tax that would be collected, staff would like to try to work through the issue and potentially look at the TDC/CVB budgets to formulate a plan for a budget transfer, or a loan, in the amount of $1.6M. Mr. Richert advised that it would be beneficial for the City, TDC, and CVB to coordinate their budget cycles. If the bed tax vote does not pass, staff may explore different options and seek Council policy direction. • Council asked how often bed tax is collected for hotels. Economic Vitality Executive Director Harold Stewart replied that hoteliers submit monthly reports to the City. • Council asked how often the City sends checks to the CVB. Mr. Stewart said checks are sent to the CVB on a monthly basis. • Interim City Treasurer David Smith noted that the TDC and CVB budget adjustment issue is tentatively scheduled for Council discussion on March 23, 2010. 22.

Proposed Bond 2010 Election Projects Request: Presentation, and possible direction to staff, regarding potential projects and bond amounts for a proposed Special Bond Election to be held concurrently with the November 2, 2010 election.

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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Staff Contact(s): Dan Worth, Public Works Executive Director, 480-312-5555, [email protected]; David N. Smith, Interim City Treasurer, 480-312-2364, [email protected] City Engineer Derek Earle gave a PowerPoint presentation (attached) on the Bond 2000 program, and the proposed Bond 2010 program, including a list of possible projects. Mayor Lane opened public testimony. Judy Frost, Scottsdale resident, said several projects approved in the 2000 Bond Program were not completed because of insufficient funding. She questioned why those projects were not included in the proposed 2010 Bond Program. She noted that the proposed 2010 Bond projects emphasized economic development, rather than improvements to parks and libraries. Judy Wagman, Scottsdale resident, representing Pinnacle Peak Heights Coalition, LLC, said the proposed Bond 2010 projects do not meet the criteria of fiscal responsibility during the current economic downturn. She questioned the necessity of the Citywide trails plan implementation project, and urged the Council to be prudent with their recommendations for the Bond 2010 Program. Bob Frost, Chairman of the Parks and Recreation Commission, expressed concern that staff did not forward Parks and Recreation Commission’s recommendations to the Budget Review Commission, nor did staff include citizen-requested facilities in the list of proposed Bond 2010 projects. He asked the Council to direct staff to add the following projects to the Library and Parks Bond Question: o Phase II Grawhawk Park, to include a four-acre dog park and a scaled down community building o Phase II Troon North Park, to include additional parking and a scaled down community building o Phase I DC Ranch Community Park, to include initial development, a control building, tennis courts, children’s play area, parking, and ramadas Mayor Lane closed public testimony. Discussion: • Staff acknowledged that the park projects are important to the City. However, they determined that the long-term operating and maintenance expenses, compounded with reduced staffing levels, would have negative operational impacts to the City. • City Engineer Derek Earle explained that the projects in Bond 2000 were reprioritized based on changes in design, costs and planning. He confirmed that there were approved Bond 2000 projects that were not completed, and that those projects were not carried forward in the Bond 2010 proposal. Instead, staff based their recommendations for proposed projects on current conditions. Interim City Treasurer David Smith gave a PowerPoint presentation (attached) providing an overview of the City’s outstanding bonds, bond ratings, debt capacity, and property taxes. Discussion: • Council asked for clarification on the bonds that are authorized by the Council, but not voter-approved. Interim City Treasurer David Smith said that Municipal Property Corporation (MPC) bonds are authorized by the Council without citizen input. Prior to

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2004, there was a financial policy that the City could not issue MPC bonds unless there was a dedicated source for repayment. MPC bonds were commonly issued for the water and sewer department, and repaid by water and sewer excise taxes, which are identified sources of revenue. In 2004, the policy was changed to remove the provision that required a dedicated revenue source for repayment of MPC bonds. The bonds can be repaid by any excise tax, which means it is supported by the General Fund without any external revenue source. Subsequently, the City authorized several MPC bonds for the purchase of land at WestWorld and SkySong, and improvements to the TPC Clubhouse. Council asked if any City operating funds are used to repay MPC bonds. Mr. Smith confirmed that approximately $6M per year is taken from the City’s General Fund operating revenues and applied towards the repayment of debt service for MPC bonds.

City Engineer Derek Earle gave a PowerPoint presentation (attached) to outline the Proposed Bond 2010 election timeline. Discussion: • Council asked why the economic vitality/tourism classification listed a project entitled “permanently archive retained documents.” City Engineer Derek Earle said there are two projects on the list that are related to general government. One is a technology infrastructure question, and the second is a requirement for archiving City documents on microfilm. Because a general government category had not been identified, staff placed the questions under economic vitality/tourism. • Some Councilmembers expressed concern about the City’s placement of the trails program within the Transportation Department, believing it was more appropriate to place the program in the Parks and Recreation Department. • Transportation Planning Director Dave Meinhart explained that the trails program is located within the Transportation Department because the City’s General Plan suggests that trails should be considered part of a transportation network. The Citywide trails implementation question was included in the list of Bond 2010 proposed projects as the result of recommendations from the Trails Task Force Ad Hoc Committee, prior direction of the Council to complete the trails system, and public input. • Council asked why the Parks and Recreation Commission’s recommendations for Bond 2010 projects were not forwarded to the Budget Review Commission and the Council. Community Services Director Bill Murphy replied that staff received the Commission’s recommendations on February 3, 2010, after the Council Report was prepared. He advised Chairman Frost that staff would include the Commission’s recommendations during the staff’s presentation at the meeting. Mr. Murphy added that he believed Mr. Earle had spoken to individual Councilmembers regarding the Commission’s recommendations. • Some Councilmembers expressed concern about including the WestWorld multipurpose facility on the proposed Bond 2010 project list, citing the need for more information on location, users of the facility, public/private partnerships, estimated costs, and public input. • Economic Vitality Executive Director Harold Stewart said the Budget Review Commission added the recommendation for the WestWorld multi-purpose facility. He explained that additional challenges to be considered are WestWorld land ownership issues and the maintenance and operational expenses of such a large facility. • Several Councilmembers spoke in support of reducing the Bond 2010 proposal, citing increased Federal, State, and local tax proposals and the declining economy.

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010



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Council suggested that staff reduce the number of projects on the list. In addition, staff was asked to revise the list to include projects for a three-year, or five-year timeframe, rather than a 10-year period. A Councilmember asked staff to provide Council with information regarding the Museum of the West funds being held in reserve. A Councilmember asked for information regarding the Desert Discovery Center proposal of $50M. Economic Vitality Executive Director Harold Stewart explained that staff used $50M as a point of reference, and not as an absolute number. $50M is a mid-point estimate of projected costs in the Desert Discovery Phase I Study conducted in 2007. Council asked for the criteria that bond rating agencies use to evaluate the City’s bond ratings. Staff explained that bond rating agencies review numerous ratios, including the City’s fiscal prudence; debt per capita; the weighted average maturity of outstanding bonds; property tax rates; and the overlapping debt of other entities, such as school districts. Council noted that the City has refinanced loans for lower interest rates, and asked if that affected the retirement date of the loans. Finance Manager Lee Guillory replied that when the City refinances loans for a lower interest rate, staff insures that the maturity of the loan remains exactly the same. Some Councilmembers suggested holding a separate bond election for the WestWorld multi-purpose facility and Desert Discovery Center.

Council provided the following feedback to staff regarding the Proposed Bond 2010 Election Projects: • Review and prioritize the project list • Return to Council with a smaller project list and reduced bond amount • Provide Council with information on projects, debt ratios, and tax rates • Re-evaluate the WestWorld multi-purpose facility and Desert Discovery Center, provide more detailed information on the proposed programming and operational aspects, and consider these facilities as either separate questions on the proposed 2010 bond election or for a separate bond election 23.

Legislative Update Request: Provide an update to the City Council and receive possible direction regarding current and pending State legislative issues and policies. Staff Contact(s): Brad Lundahl, Acting Government Relations Director, 480-312-2683, [email protected]

Discussion: • Mayor Lane announced that Item 23 had been postponed until the March 2, 2010 Meeting. MAYOR AND COUNCIL ITEMS Notice of Possible Executive Session Notice is hereby given that at any time during the February 16, 2010 Council Meeting, the Council may make a motion to recess into Executive Session for Item No. 24 on this agenda for the purpose of: (1) discussing and/or considering the employment, assignment, appointment, reappointment, demotion, dismissal, compensation and benefits, disciplining, or resignation of the Presiding Judge; and (2) discussing and/or consulting with the City attorney(s) for legal advice. A.R.S. 38-431.03(A) (1) and (3).

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

24.

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Presiding Judge Reappointment Request: Discuss and consider the reappointment, including terms of employment, of B. Monte Morgan as Presiding Judge. Staff Contact(s): La Verne Parker Diggs, Human Resources Executive Director, 480312-2615, [email protected]

Discussion: • Presiding Judge B. Monte Morgan thanked the Council and staff for the opportunity to serve as Presiding Judge. He said he worked to maintain the integrity, transparency, and honesty of the City Court, and asked for reappointment. Mayor Lane opened public testimony. Janet Cornell, Court Administrator, said she was available to answer any questions regarding the operations of the City Court. Nancy Baurichter, Scottsdale resident, read a statement from Henry Becker asking the Council not to reappoint Judge Morgan. Bill Giordano, Scottsdale resident, spoke in opposition to the reappointment of Judge Morgan, and said he did not get a fair hearing at Court. He believes Judge Morgan favors the rulings of the court commissioners over the opinions of the public. Mayor Lane closed public testimony. MOTION NO. 1 – ITEM 24 COUNCILMAN LITTLEFIELD MOVED TO RECESS INTO EXECUTIVE SESSION TO DISCUSS AND CONSIDER THE EMPLOYMENT, ASSIGNMENT, APPOINTMENT, REAPPOINTMENT, DEMOTION, DISMISSAL, COMPENSATION AND BENEFITS, DISCIPLINING, OR RESIGNATION OF THE PRESIDING JUDGE, AND CONSULT WITH THE CITY ATTORNEY FOR LEGAL ADVICE. COUNCILMAN MCCULLAGH SECONDED THE MOTION. Discussion: • Judge Morgan acknowledged that he ruled against Mr. Becker in a case before his court. He pointed out that the case was appealed and the original ruling was sustained; however, there is a special action filed in the case that is pending in a higher court. • Judge Morgan explained that Mr. Giordano was found responsible for a civil traffic violation in City Court by one of the court commissioners. Judge Morgan confirmed that he responded to Mr. Giordano’s letter by advising him of his legal remedy to appeal. Mr. Giordano’s case is currently on appeal. VOTE ON MOTION NO. 1 – ITEM 24 THE COUNCIL VOTE ON THE MOTION TO RECESS INTO EXECUTIVE SESSION TO DISCUSS AND CONSIDER THE EMPLOYMENT, ASSIGNMENT, APPOINTMENT, REAPPOINTMENT, DEMOTION, DISMISSAL, COMPENSATION AND BENEFITS, DISCIPLINING, OR RESIGNATION OF THE PRESIDING JUDGE, AND CONSULT WITH THE CITY ATTORNEY FOR LEGAL ADVICE CARRIED 6/0.

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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Adjourn to Executive Session The Council recessed to Executive Session at 11:17 P.M. Reconvene Special Meeting Mayor W.J. “Jim” Lane reconvened the Special Meeting at 11:47 P.M. on Tuesday, February 16, 2010 in the City Hall Kiva. MOTION AND VOTE NO. 2 – ITEM 24 COUNCILMAN LITTLEFIELD MOVED TO NOT APPROVE THE REAPPOINTMENT OF JUDGE MORGAN. COUNCILMAN ECTON SECONDED THE MOTION, WHICH CARRIED 4/2, WITH MAYOR LANE AND COUNCILWOMAN KLAPP DISSENTING. Discussion: • Judge Morgan expressed disappointment with the Council’s decision. He said he dedicated ten years to the City and put in time, effort, sweat, and tears into managing the Court. Public Comment – None Mayor and Council Items – Councilman Nelssen asked staff to provide information to the Council regarding the Court’s requirement of a fine in the event a person with a legitimate handicap placard forgets to place the placard on their vehicle. Adjournment With no further business to discuss, the Regular Meeting adjourned at 11:48 P.M. SUBMITTED BY:

REVIEWED BY:

Cathleen Butteweg Deputy City Clerk

Carolyn Jagger City Clerk

Officially approved by the City Council on ______________________________

Scottsdale City Council Regular Meeting Tuesday, February 16, 2010

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CERTIFICATE 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 Scottsdale, Arizona held on the 16th of February 2010. I further certify that the meeting was duly called and held, and that a quorum was present. DATED this 23rd day of March 2010.

____________________________________________ CAROLYN JAGGER City Clerk