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HomeMy WebLinkAboutCC - Minutes - City Council - 5/13/2014 (3)PRESCOTT CITY COUNCIL REGULAR VOTING MEETING TUESDAY, MAY 13, 2014 PRESCOTT, ARIZONA MINUTES OF THE REGULAR VOTING MEETING OF THE PRESCOTT CITY COUNCIL HELD ON MAY 13, 2014, in the COUNCIL CHAMBERS located at CITY HALL, 201 SOUTH CORTEZ STREET, Prescott, Arizona. ♦ CALL TO ORDER Mayor Kuykendall called the meeting to order at 3:02 P.M. ♦ INTRODUCTIONS ♦ INVOCATION by Reverend Darrin Merlino, Sacred Heart Catholic Church ♦ PLEDGE OF ALLEGIANCE by Councilman Blair ♦ ROLL CALL: Present: Absent: Mayor Kuykendall None Mayor Pro Tern Lamerson Councilman Arnold Councilman Blair Councilman Kuknyo Councilman Lazzell Councilwoman Wilcox ♦ ANNOUNCEMENTS No announcements were made ♦ PROCLAMATION A. Proclaiming May 2014 as Motorcycle Safety and Awareness Month Councilman Kuknyo presented the proclamation to Deborah Butitta, Chairman of the Motorcycle Riders Awareness Education. I. CONSENT AGENDA A. Approval of minutes for the Council meetings held on April 8, 2014, April 22, 2014 and April 23, 2014 Prescott City Council Regular Voting Meeting May 13, 2014 Page 2 Councilwoman Wilcox removed Item I.A from the Consent Agenda for further discussion. Councilwoman Wilcox made corrections to the Special Meeting Minutes of April 8, 2014. She noted that on page 2 she said "the Dells are the entry point to one of the most marvelous geologic wonders in the region". She noted that on page 6 of the same minutes, when she amended the motion, her intention was that the $500,000.00 committed by the Council, would not be a forever cap on the commitment. COUNCILMAN ARNOLD MOVED TO APPROVE CONSENT AGENDA ITEM I.A. AS AMENDED; SECONDED BY MAYOR PRO TEM LAMERSON; PASSED UNANIMOUSLY. B. Adoption of Resolution No. 4220-1429, approving a Memorandum of Understanding (MOU) with the Northern Arizona Veterans Affairs Police Department (NAVAPD) providing for interagency cooperation Councilwoman removed Item 1.13 from the Consent Agenda for further discussion. Councilwoman Wilcox noted that the document was confusing. It was a Memorandum of Understanding, but starts out reading like a letter. She said there was no title and it should be correctly formatted, with page numbers, and then come back to Council. The effective date is unclear and needs to be approved by Council. There was also a misspelling on the document. Councilman Arnold noted that the resolution referred to an April 14 letter or MOU and the subsequent documents are dated May 1. COUNCILMAN ARNOLD MOVED TO TABLE CONSENT AGENDA ITEM I.B.; SECONDED BY COUNCILWOMAN WILCOX; PASSED UNANIMOUSLY. C. Approval of purchase of two (2) ea. D-600 six cubic -yard vertical stationary compactors from Wastequip, Inc., using NJPA Contract No. 060612-WQI pricing in the total amount of $17,591.73 (Solid Waste Operating Fund) Mayor Kuykendall removed this item from the agenda until a future meeting. D. Authorization to file an appeal in Case No. CV-13-08236-PCT-JAT, Pure Wafer adv. City of Prescott Councilwoman Wilcox removed Item I.D from the Consent Agenda for further discussion. Councilwoman Wilcox said she had been absent during the Executive Session. When she returned and read the Daily Courier article, which said the Council reportedly Prescott City Council Regular Voting Meeting May 13, 2014 Page 3 directed the City Attorney to file a Notice of Appeal (in relation to the Pure Wafer case), she questioned whether a decision had been made at the Executive Session and whether a Notice of Appeal had actually been filed. Jon Paladini, City Attorney, said because the order of the Judge came down as a judgment, which started the 30 day time clock, and the Notice of Appeal had to be filed within 30 days, this was the first Council meeting the action could be agendized to precede with the appeal. He said the Notice of Appeal had been filed to preserve the City's right to appeal the case. No other action had been taken. The action is to authorize the City to proceed forward. Councilwoman Wilcox asked if the Council had been provided any information regarding the cost of an appeal. Mr. Paladini said that he thought he provided that information in a memo. Councilwoman Wilcox indicated she did not receive the memo. Councilwoman Wilcox said there was a fine line between directing the attorney to file a Notice of Appeal and making a decision to appeal a case. A decision cannot be made in Executive Session and the Council needs more information before it decides to appeal a case, as it can be expensive and may or may not be the right thing to do. Mr. Paladini said this item asks Council to make a decision to allow outside Counsel to proceed forward with the appeal in this case. He said the discussion for the reasons why were done in Executive Session. Councilwoman Wilcox said it seemed there was direction given to him to file a Notice of Appeal. Mr. Paladini said it was done in order to preserve the City's right. If the City had not been able to file the Notice of Appeal, the City may have lost the ability all together. Councilwoman Wilcox said that it seemed that item could have been an action item on the Regular Meeting Agenda the same day as the Executive Session, if that had been the intent. Councilman Blair said Councilwoman Wilcox's question regarding cost was answered in the Executive Session. Mr. Paladini said he recommended going into Executive Session because he was not comfortable talking about legal strategies in an ongoing litigation case, in public. Councilwoman Wilcox said she did not think they needed to go into Executive Session if the Council had been provided information about the cost. She said she was concerned about the process and would like to see an open meeting decision scheduled the same day or soon after an Executive Session. MAYOR PRO TEM LAMERSON MOVED TO AUTHORIZE THE ATTORNEY TO FILE AN APPEAL IN CASE NO. CV-13-08236-PCT-JAT, PURE WAFER ADV. CITY OF Prescott City Council Regular Voting Meeting May 13, 2014 Page 4 PRESCOTT; SECONDED BY COUNCILMAN LAZZELL; PASSED 6-1, WITH COUNCILMAN KUKNYO DISSENTING; COUNCILWOMAN WILCOX ABSTAINED FROM VOTING ON THIS ITEM, WHICH WAS RECORDED AS A YES VOTE. E. Revision of plat of Estancia de Prescott, Phase One, to modify the disturbable envelope (building footprint) of Lot 10 to allow for the construction of a single- family residence (Applicant: Chris Larson, Prescott) F. Revision of Plat RP 12-001, splitting portions of Lots 402. 402 and 409 to create a new lot in the Idylwild Tract subdivision (Owner: John D. Cargill, Prescott, AZ) G. Approval of submission of a 2014 Arizona Wildland Fire Hazardous Fuels Project Grant application to the Arizona Division of Forestry; and ratification of submittal of a grant request to Yavapai County for Title III forest project "` funding COUNCILMAN ARNOLD MOVED TO APPROVE CONSENT AGENDA ITEMS I.E. - I.G; SECONDED BY MAYOR PRO TEM LAMERSON; PASSED UNANIMOUSLY. II. REGULAR AGENDA A. Public Hearing and consideration of a Series 12, Restaurant, liquor license application from Vernon Rex Cullum, applicant for Tara, located at 115 South Cortez Street Dana DeLong, City Clerk, presented, noting that the license had been posted for the required 20 day period, with no petitions or protests received. The application cleared Planning and Zoning and the City of Prescott Police Department. The applicant was present to answer questions. COUNCILMAN ARNOLD MOVED TO CLOSE THE PUBLIC HEARING; SECONDED BY MAYOR PRO TEM LAMERSON; PASSED UNANIMOUSLY. COUNCILMAN ARNOLD MOVED TO APPROVE LIQUOR LICENSE APPLICATION NO. 12133582, FOR A SERIES 12, RESTAURANT, LICENSE, FOR TARA LOCATED AT 115 SOUTH CORTEZ STREET; SECONDED BY MAYOR PRO TEM LAMERSON; PASSED UNANIMOUSLY. B. Appointment of Seymour Petrovsky to the Fire Board of Appeals Dana DeLong, City Clerk, presented, noting that in March 2014, Sharon Nordyke submitted her resignation from the Board due to relocation outside of the City limits. Recently, Seymour Petrovsky submitted an application to serve on the Board. He had previously served on other boards and commissions for the City. Members of the Prescott City Council Regular Voting Meeting May 13, 2014 Page 5 Council Appointment Committee recommended Mr. Petrovsky for appointment to the Fire Board of Appeals. MAYOR PRO TEM LAMERSON MOVED TO APPOINT SEYMOUR PETROVSKY TO THE FIRE BOARD OF APPEALS, TERM TO EXPIRE MARCH 2O16; SECONDED BY COUNCILMAN ARNOLD; PASSED UNANIMOUSLY. C. Adoption of the 2014/2015 CDBG Annual Action Plan and adoption of Resolution No. 4224-1433 authorizing application for Community Development Block Grant funds Shaun Rydell, Community Program Manager, was available to answer questions. Councilwoman Wilcox noted that $140,000.00 of the CDBG funds will be used for street projects. She asked if there was consideration by the committee to ask the City to use the streets tax for that project and instead use the CDBG money for housing rehabilitation or other CDBG projects. Ms. Rydell said there was discussion regarding this project in program year 2013. She said CDBG funds were used for engineering planning. The facility shows that it is ready to be built in program year 2014. There was not any discussion beyond leveraging the One Percent Sales Tax dollars against the project. It was staff's recommendation to use CDBG funds for projects that were ready to be built. Craig McConnell, City Manager, said that the objective is that if this is done it will provide an opportunity for Habitat for Humanity to develop some low to moderate income housing. Councilman Arnold said he understood there was not a competing project for the same classification. Ms. Rydell said he was correct. Councilman Arnold asked if there was a percentage requirement that had to be spent on that type of project with no competing project being applied for during the process. Ms. Rydell said yes. Councilman Kuknyo gave his support for the project. He said it was a great improvement to the street. Councilman Arnold said this was the end of the cumulative plan, and the new committee was looking at the next five year plan. He said his hope was that staff could fully publicize and prioritize projects. Mayor Kuykendall asked if the recommendation was unanimous from the committee. Ms. Rydell said yes. Prescott City Council Regular Voting Meeting May 13, 2014 Page 6 COUNCILMAN ARNOLD MOVED TO ADOPT THE CITY OF PRESCOTT 2014/2015 CDBG ANNUAL ACTION PLAN; SECONDED BY COUNCILMAN BLAIR; PASSED UNANIMOUSLY. COUNCILMAN ARNOLD MOVED TO ADOPT RESOLUTION NO. 4224-1433; SECONDED BY MAYOR PRO TEM LAMERSON; PASSED UNANIMOUSLY. D. Approval of Final Plat FP14-001 for Granite Dells Estates Phase 1A PAD, a 208 lot single-family subdivision on 39.17 acres located south of State Route 89A, east of the Peavine Trail, and west of Granite Dells Parkway. (Owner: Granite Dells Estates Properties/Michael Fann, Prescott, AZ) Councilman Arnold declared a conflict of interested and departed the dais at 3:35 P.M. Tom Guice, Community Development Director, presented. He said in addition to the 208 residential lots, there are two commercial lots being created. There are also 14 open space tracts, the largest being along Granite Dells Ranch Road. He noted that one of the conditions of the preliminary plat approval was that all final plats and grading plans be reviewed by the Planning and Zoning Commission. The commission made a unanimous decision to approve the final plat. Mr. Guice said there are two final plat notes. One had to do with the airport influence area and the ordinance that created that. The second related to public trails within the project. The trails are not specifically identified on the plat, but they would be established in the future. Mayor Kuykendall asked about the grading plan. Mr. Guice said there was some minor grading to be done. Councilman Blair asked if this was in conformance with the original final plat. Mr. Guice said yes. Councilwoman Wilcox asked for clarification of the trail easement. Jason Gisi, developer for the project, said it will be easier to see where the trails go once the property has been re -graded. He has worked with trails people and staff, who agree with that approach. He said there will be trails in the project. COUNCILMAN BLAIR MOVED TO APPROVE FINAL PLAT FP14-001 FOR THE GRANITE DELLS ESTATES PHASE 1A PAD; SECONDED BY COUNCILMAN LAZZELL; PASSED 6-0. E. Approval of purchase of one (1) ea. Caterpillar skidsteer loader with mulcher attachment from Empire Equipment of Prescott for the Fire Department fuels reduction program using City of Tucson/National Intergovernmental Prescott City Council Regular Voting Meeting May 13, 2014 Page 7 Purchasing Alliance contract No. 120377 pricing in the total amount of $136,992.61 (City contract No. 2014-180; General Find) Darrell Willis, Wildland Division Chief, presented. He said this equipment will assist the department with clearing large private property parcels. The equipment reduces manpower it usually takes to do this work. Councilman Arnold said this is being paid for with unused funds from the McCormick building remodel. Craig McConnell, City Manager, said the City of Prescott needs to reduce wildfire hazards. He said it is among the highest priority. Staff will propose to re -budget the renovation of Phase I of the fire administration building. Councilman Blair said there are three pieces of equipment used for reducing fire hazards that may be given to the City and asked if the Chief would be interested in them. Chief Willis said yes and noted that the equipment would not have a warranty and may require man hours to get it working. Councilman Kuknyo asked if the sales tax would stay in Prescott. Mark Woodfill, Finance Director, noted that if the sale is made through a local based salesperson, the tax would be with the City of Prescott. Mayor Pro Tern Lamerson said he appreciated that the fire hazard issue came before remodeling a building. COUNCILMAN BLAIR MOVED TO APPROVE THE PURCHASE OF ONE (1) EA. CATERPILLAR SKIDSTEER LOADER WITH MULCHER ATTACHMENT FROM EMPIRE EQUIPMENT OF PRESCOTT USING CITY OF TUCSON/NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE CONTRACT NO. 120377 PRICING IN THE TOTAL AMOUNT OF $136,992.61 (CITY CONTRACT NO. 2014- 180); SECONDED BY MAYOR PRO TEM LAMERSON; PASSED UNANIMOUSLY. F. Adoption of Ordinance No. 4887-1425 authorizing acceptance of a fee simple land donation from Arizona Public Service Company. Eric Smith, Recreation Services, presented and noted that the City of Prescott had been leasing property from Arizona Public Service Company (APS) at the current site of the Willow Creek Dog Park. APS was approached by staff earlier this to see if they were interested in donating all or part of the 3.4 acres to the City of Prescott. APS determined there were 2.3 acres they would not need for a future substation expansion. Mr. Smith said APS agreed to pay for the environmental assessment; the City will pay for survey costs and incur any title, escrow, and recording fees for the transfer of ownership. He said that APS required the existing fences be relocated to the new Prescott City Council Regular Voting Meeting May 13, 2014 Page 8 boundary of the park as well as signage near the front of the park indicating that they donated the land to the City of Prescott for the dog park. Councilman Blair said he hoped the Parks and Recreation Department would take a look at this facility, to replace the ramada, bathroom and equipment. He said the entire scope of the property should be revised. The baseball field should be taken out of production, since a new one was built by the Diamondbacks Foundation at Kuebler Field. Councilman Arnold noted that Item 6 in exhibit B said "there will be no requirements or demands upon APS to beautify the Willow Lake substation. Any future expansion of the substation will be similar in nature to its current external appearance". He asked what that had to do with the acquisition of the property. Mr.Smith said he could not comment on why that was in the clause. Council thanked APS for the property. Mayor Pro Tern Lamerson said there may be opportunities for sales and bed tax if the property were re -developed. James Kepner, resident, said he liked the facilities. Brian Bishop, resident, said he saw an opportunity to discuss plans for the area involving kids and families. He wanted to see attention to the children of the community. COUNCILMAN LAZZELL MOVED TO ADOPT ORDINANCE NO. 4887-1425; SECONDED BY COUNCILMAN BLAIR; PASSED 6-1 WITH COUNCILMAN ARNOLD DISSENTING. G. Award of contracts for Appraisal Services for various real property transactions to: (1) Wayne Harding & Associates (City contract No. 2014- 166), and (2) Roger L. Dunlap & Associates, LTD (City Contract No. 2014- 167), each in an amount not to exceed $30,000.00. Scott Tkach, City Engineer, presented. He said this work would cover appraisals that provide fair market value for the acquisition of right-of-way easements and the disposal of real property. Mayor Kuykendall asked if this is in next year's budget. Craig McConnell, City Manager, said yes. Prescott City Council Regular Voting Meeting May 13, 2014 Page 9 MAYOR PRO TEM LAMERSON MOVED TO AWARD CITY CONTRACT NO. 2014- 166 TO WAYNE HARDING & ASSOCIATES, IN AN AMOUNT NOT TO EXCEED $30,000.00; SECONDED BY COUNCILMAN ARNOLD; PASSED UNANIMOUSLY. MAYOR PRO TEM LAMERSON MOVED TO AWARD CITY CONTRACT NO. 2014- 167 TO ROGER L. DUNLAP AND ASSOCIATES, LTD, IN AN AMOUNT NOT TO EXCEED $30,000.00; SECONDED BY COUNCILMAN LAZZELL: PASSED UNANIMOUSLY. H. Adoption of Resolution No. 4225-1434 approving the Impact Fee Report and adopting a Fee Schedule for Impact Fees pursuant to Arizona Revised Statutes §9-463.05. Mark Woodfill, Finance Director, presented. He displayed the schedule of events and said this was the 11t" meeting with the Council and public relating to Impact fees. Craig McConnell, City Manager, said there was discussion regarding this item the previous week. Page two of the resolution in the packet sets forth some options. The Council could select one of the following: 1) Not charge police development impact fees and not charge fire and EMS development fees, which is the staff recommendation. 2) Council can defer the charging of police and fire impact fees from the effective date of August 1, 2014 — January 1, 2015, which are arbitrary dates. 3) Council could determine another alternative. Mr. McConnell said the City of Prescott does not have the money to operate new fire stations and is not in the position to recommend that a fire station be built and collect Ilkw impact fees to help pay for the station. He said the same was true for police facilities. Councilman Arnold wanted to be clear that if Council chose to defer the fees, it was the consultant's opinion that Council could only defer them for approximately six months. He asked if that was just the consultant's opinion and not a legal opinion. Mr. Woodfill responded that it was the consultant's opinion. Councilman Arnold asked that if in two years, future Council chooses to re-evaluate the fire and police fees, the City would be required to go through the same extensive process. Mr. Woodfill said that was spelled out in the statutes. The City would have to go through the process which may take approximately 18 months. Councilman Arnold said he would support staff's recommendation. Prescott City Council Regular Voting Meeting May 13, 2014 Page 10 Mayor Pro Tern Lamerson said his understanding is that impact fees cannot be used to relocate existing facilities, only new growth. Jon Paladini, City Attorney, said that was generally correct, however, if the Council did not adopt police and fire fees and then went through a study, the study could contemplate relocation of a fire station. The study could attribute part of the need for a new location to future new growth. Mr. McConnell said that Council and staff will be talking about the FY15 budget on Thursday. He said staff will describe FY15 as a transitional year, where they form ideas about what to do concerning public safety funding. Councilman Lazzell said he objects to the state telling the City of Prescott how to run their business. Councilwoman Wilcox asked if Council selects Option 2 in the resolution, where they defer the imposition of an impact fee, can Council then decide not to charge an impact fee at all for police and fire after Council receives the ICMA study. Mr. Paladini said that the longer you push it out the more it is subject to challenge. Anytime during the time period that it is being deferred and not being charged it can always be eliminated. Councilman Blair said he was not going to support this. The state is overstepping their bounds. Mr. McConnell commented that with respect to the water, wastewater and water resource development fee, that is significant funding. The City needs the money to keep the capital program going. If the revenue from impact fees for new capacity is lost, the City will not be able to do projects which deal with existing deficiencies. Councilman Blair said it was unfortunate that those who do not know what Prescott is all about to force a law on the City that takes away an opportunity to enhance the community. He said that he would vote yes to support wastewater and water. Councilman Kuknyo said the decision from the state does not let the City of Prescott prepare for the future. Daniel Mattson, resident, said that Council can reduce the fee anytime they want, but adding a fee will take 18 months or more. He recommended that Council adopt this with fire and police. He thought the City had the option to get rid of it at a later date. If the City does not maintain it at this point, all the time and expense has been wasted. Len Scamardo, resident, addressed the Council. He was against the legislation in that it was a flat fee basis. When he was a builder in New York, a building permit, was based Prescott City Council Regular Voting Meeting May 13, 2014 Page 11 on value and Prescott's impact fees are based on a flat amount. There are a number of lots in Prescott that are vacant, have water and were platted well before the 1998 mandate. He said those lots can be used for starter houses. The lots are being bypassed by builders because the cost per square foot is higher than for a builder who has a $500,000.00 house on $200,000.00 of land. They each pay $15,500.00 for impact fees. Mayor Kuykendall asked if this was an option. Mr. Woodfill said that it was not an option. He said public safety fees were done on a square foot basis for commercial uses, but overall, water and wastewater are done on meter size. He noted that fees for homes will differ depending on what zone the home is in. Mr. McConnell said this is the methodology prescribed by law; the City does not have the ability to modify the methodology. The reasoning is that it is an assessment on the impact on infrastructure. Councilman Kuknyo asked if everyone in the state does it the same way. Mr. Woodfill said yes. COUNCILWOMAN WILCOX MOVED TO ADOPT RESOLUTION NO. 4225-1434 WITH OPTION 2 AS OUTLINED IN THE STAFF REPORT, TO CHARGE ZERO DOLLAR AND ZERO CENT ($0.00) RATES FOR EACH OF FIRE AND EMS DEVELOPMENT IMPACT FEES AND POLICE DEPARTMENT IMPACT FEES FROM AUGUST 1, 2014, UNTIL JANUARY 1, 2015, AT WHICH TIME SAID IMPACT FEES SHALL COMPORT WITH DEVELOPMENT IMPACT FEES SCHEDULE OF EXHIBIT B; SECONDED BY COUNCILMAN BLAIR; COUNCILMAN ARNOLD OFFERED AN AMENDMENT TO THE MOTION TO INCLUDE A DATE CERTAIN OF ON OR BEFORE DECEMBER 9, 2014, TO EVALUATE WHETHER OR NOT THE COUNCIL CHOOSES TO COLLECT THOSE FEES, PRIOR TO JANUARY 1, 2015. COUNCILWOMAN WILCOX ACCEPTED THE AMENDMENT TO THE MOTION. MOTION PASSED 6-1, (COUNCILMAN LAZZELL DISSENTING.) Award of bid and contract for the Willow Creek Dam Repairs Project to Technology Construction, Inc., in the amount not $180,000.00 (City Contract No. 2014-182; Water Fund) Tim Burkeen, Capital Program Manager, presented. He said it was the second in a series of projects to repair the dams. He said the dam was constructed in 1935 and was in fairly good shape. There was some surface deterioration on the concrete. He noted that safety railing and security fencing also needed to be installed. The contract allows Prescott City Council Regular Voting Meeting May 13, 2014 Page 12 for 45 calendar days for the completion of work, beginning shortly after the award of contract. Councilman Arnold asked if all of the bids were evaluated for meeting the City's balanced biding requirements. Mr. Burkeen said yes, to an extent. However, when the lowest bidder, Technology, was determined to be responsive and responsible, the staff did not look into the other bids. COUNCILMAN ARNOLD MOVED TO AWARD THE BID AND CONTRACT FOR THE WILLOW CREEK DAM REPAIRS PROJECT TO TECHNOLOGY CONSTRUCTION, INC., IN THE AMOUNT OF $180,000.00 (CITY CONTRACT NO. 2014-1820); SECONDED BY COUNCILWOMAN WILCOX; PASSED UNANIMOUSLY. J. Award of bid and contract for the FY 2014 Pavement Reconstruction Project to Asphalt Paving & Supply, Inc., in the amount of $2,461,747.07 (City Contract No. 2014-184; One Cent Streets and Open Space, and Water Funds) Tim Burkeen, Capital Program Manager, said pavement reconstruct is another method used in maintaining the streets when pavements are beyond chip or slurry seal. The roads to be reconstructed are: Willow Lake Frontage Road, College Heights Road, Haining Street, Delano Avenue, Sequoia Drive, portions of Willow Lake Road and portions of Miller Valley Road, which is roughly 4.4 lane miles. Mr. Burkeen noted that the design project was complete as well as the utility relocation. The contract also includes the replacement of aged and under -sized water mains on College Heights Road and Sequoia Drive. The contract allows 270 calendar days of completion of the work. Councilman Arnold asked if staff determined that this bid was in compliance with the City's balanced bidding requirements. Mr. Burkeen said yes. Councilwoman Wilcox asked if any of the projects included bike lanes along the streets. Mr. Burkeen said the City is not adding additional bike lanes. Councilwoman Wilcox asked about the system used to determine the condition of the streets and priority for reconstruction. Mr. Burkeen said staff updates the pavement management system every year. The condition of every street in the City is rated and the streets to be reconstructed have among the lowest pavement ratings. He noted that the rating system takes into consideration the drivability of the street, condition of the asphalt, the classification of the road, the average daily traffic, in addition to other safety factors. He noted that minor collectors and arterials take precedence over residential. Prescott City Council Regular Voting Meeting May 13, 2014 Page 13 Councilwoman Wilcox said she would like to take more time understanding the system. MAYOR PRO TEM LAMERSON MOVED TO AWARD THE BID AND CONTRACT FOR THE FY 2014 PAVEMENT RECONSTRUCTION PROJECT TO ASPHALT PAVING & SUPPLY, INC., IN THE AMOUNT OF $2,461,747.07 (CITY CONTRACT NO. 2014-184); SECONDED BY COUNCILMAN BLAIR; PASSED UNANIMOUSLY. Mayor Kuykendall said before they moved to Item K, there had been a request to recess into Executive Session for legal advice. Councilman Arnold declared a conflict of interest for the Executive Session and the subsequent Voting Session. He departed at 4:51 P.M. MAYOR PRO TEM LAMERSON MOVED TO RECESS INTO EXECUTIVE SESSION; SECONDED BY COUNCILMAN LAZZELL; PASSED 6-0. Council recessed into executive session at 4:51 P.M. and reconvened into Regular Session at 5:37 P.M. K. Award of bid and contract for the Park Avenue Improvements Project to Fann Contracting, Inc., in the amount of $5,457,035.50 (City Contract No. 2014- 185; One Cent Streets and Open Space, Water, and Wastewater Funds) Tim Burkeen, Capital Program Manager, presented. This item is to completely reconstruct Park Avenue, including curbs and gutters, sidewalks, water and sewer lines and services, and storm drains. Mr. Burkeen said the water main on Park Avenue will be replaced with approximately 3,100 of new 8- inch ductile iron water main. The existing sewer main on Park Avenue will be replaced with approximately 4,100 of new 8 inch PVC sewer main with new manholes and services. New storm drain piping and structures will be constructed from Country Club Drive to Glenwood Avenue. He said that protection and preservation of historic features has been provided for in the contract documents. Councilman Blair asked if there is anything in the bid document that stipulates that the road infrastructure in front of Lincoln School is done before school begins. He also asked if the light poles would be refurbished or painted before they are reinstalled. Mr. Burkeen said utility work will be done in front of the school in the summer months. He noted that City staff would go in ahead of the contractor to remove the light poles. He did not know if they would be repainted but would look into it. Ralph Rodarte, resident, addressed the Council said that we went through a street reconstruction recently on Mt. Vernon. He was going with the recommendation because of the issues that Fann Contracting addressed and how the staff handled the Prescott City Council Regular Voting Meeting May 13, 2014 Page 14 issues. He said there were issues not in the bid but the workers were just courteous and caring people. He said that you cannot put a price on service. Mike Fann, contractor, said he knows Park Avenue well, but he was not there to speak to Park Avenue, but to speak to public policy. He did not mind competing; he just wants a fair competition. He wanted a level playing field. He noted that for a number of years Prescott did not have provisions in their specifications for unbalanced bids. A few months ago, staff changed the rules. He said that staff said they were tired of unbalance bids and they changed the language in their bids. The language said that proposals would be considered irregular and may be rejected for material unbalanced bids, a bid that generates a reasonable doubt that award to the bidder submitting a mathematically unbalanced bid will result in the lowest ultimate cost to the City of Prescott, or a mathematically unbalanced bid, a bid containing lump sum or uni-prices that do not reflect reasonable anticipated actual costs, plus a reasonable proportionate share of the bidders anticipated profit, overhead and other incidental costs. He said that was good public policy. Mr. Fann noted that he read that courts have consistently stated that there is a strong public policy favoring competitive bidding as embodied in competitive bidding statutes. To enforce the public policy inherent in competitive bidding statues, a public agency is required to reject any bid that is non -responsive; for instance, a bid that varies material from the invitation for bids or provides the bidder an advantage not enjoyed by other bidders. He noted that the apparent low bidder for Park Avenue listed 7,000 hours for the flagger item and the rock removal item had 7,139 cubic yard listed. If just those two items are added, the total bid would be $56,713.00. The total bid from the second apparent low bidder was $482,811.00, a difference of $426,000.00 for those two items. He noted that unbalanced bids make it difficult to know who the really the low bidder is. Connor Moody, owner of CLM Earthmovers, talked about the bid. He noted that Mr. Fann charged $1.00/hour for flaggers on the Mt. Vernon job and CLM charged $8.00 per hour. He asked how that was different from his bid for Park Avenue. He noted that CLM had done $20 million worth of successful projects in four years with the City of Prescott. He does not believe that it is fair that the current job is being pulled from him. He said it should be awarded to the actual low bid from CLM Earthmovers, which would save the tax payers half of a million dollars on the project. Daniel Mattson, resident, said it is time for Park Avenue to get fixed. MAYOR PRO TEM LAMERSON MOVED TO TAKE THE STAFF'S RECOMMENDATION TO AWARD THE BID AND CONTRACT FOR THE PARK AVENUE IMPROVEMENTS PROJECT TO FANN CONTRACTING, INC., IN THE AMOUNT OF $6,457,035.50 (CITY CONTRACT NO. 2014-185); SECONDED BY COUNCILMAN BLAIR; PASSED 6-0. Prescott City Council Regular Voting Meeting May 13, 2014 Page 15 III. BOARD AND COMMISSION REPORTS This item was not discussed. ADJOURNMENT There being no further business to be discussed, the Regular Voting Meeting of May 13, 2014, adjourned at 5:56 P.M. MARON D. KUYKEPtDALL, Mayor ATTEST: lliliw L�� ANA R. DeLONG, City CI r CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Voting Meeting of the City Council of the City of Prescott, Arizona held on the 13t" day of May, 2014. 1 further certify the meeting was duly called and held and that a quorum was present. Dated this AL day of - 1Ju YI 1 , 2014. AFFIX CITY SEAL n DANA R. DeLONG, City CI r