Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
CC - Agendas - City Council - WORKSHOP - 10/28/2008
PRESCOTT CITY COUNCIL WORKSHOP AGENDA PRESCOTT CITY COUNCIL WORKSHOP TUESDAY, OCTOBER 28, 2008 1:00 P.M. Council Chambers 201 S. Cortez Street Prescott, AZ 86303 (928) 777-1100 The following Agenda will be considered by the Prescott City Council at a Workshop pursuant to the Prescott City Charter, Article II, Section 13. Notice of this workshop is given pursuant to Arizona Revised Statutes, Section 38-431.02. ♦ CALL TO ORDER ROLL CALL MAYOR AND CITY COUNCIL: Mayor Wilson Councilman Bell Councilman Lamerson Councilwoman Lopas 1. Presentation and Discussion by Form -Based Codes. 2. Discussion of Implementation of Business Licenses and Direction. 3. Adjournment. Councilman Luzius Councilman Roecker Councilwoman Suttles Roger Eastman with the City of Flagstaff on THE CITY OF PRESCOTT ENDEAVORS TO MAKE ALL PUBLIC MEETINGS ACCESSIBLE TO PERSONS WITH DISABILITIES. WITH 46 HOURS ADVANCE NOTICE, SPECIAL ASSISTANCE CAN BE PROVIDED FOR SIGHT AND/OR HEARING IMPAIRED PERSONS AT PUBLIC MEETINGS. PLEASE CALL 777-1272 OR 777-1100 (TDD) TO REQUEST AN ACCOMMODATION TO PARTICIPATE IN THIS MEETING. CERTIFICATION OF POSTING OF NOTICE The undersigned hereby certifies that a copy of the foregoing notice was duly posted at Prescott City Hall on /D/L3/O $ , at 4i -.'07) .m. in accordance with the statement filed by the Prescott Ci Council'with the City Clerk. 1 d_Atae__ lizabethA urke, MMC, City Clerk .r A NEED FOR BIG CHINO WATER YEARS AWAY Presentation to Prescott City Council, October 28, 2008 From the Citizens Water Advocacy Group Delivered by Howard Mechanic, Chair of the Public Policy Committee Many people assume we need Big Chino water soon -- both to continue Prescott's growth and to reach Safe Yield. However, it is now clear this assumption is incorrect. In fact, there is a good chance we won't need Big Chino water until 2025 for either Safe Yield or to continue growth. While it would be nice to reach Safe Yield in a few years; that simply isn't going to happen. It is highly unlikely the area will achieve Safe Yield much before 2025, even though we need to develop a plan relatively soon. In addition, with home construction stagnant and Prescott poised to get a new water allocation, it may be quite a while before we will need Big Chino water for new homes. In the last ten years, since the area was declared out of Safe Yield, Prescott's City Councils have allocated 200 acre-feet per year for new development. This amount of water has been enough to satisfy the new demand, and there usually has been some water left unallocated at the end of each year. On August 28, 2008, Prescott had 1840 acre-feet in its alternate water supply portfolio. The 1840 acre-feet provide enough water for nine years' water allocations. Note that of Prescott's existing 1840 acre-feet alternate water supply portfolio 1296 acre-feet would provide enough water to build homes on all remaining non -watered lots within our city limits at existing densities. Prescott recently applied to the Arizona Department of Water Resources (ADWR) for authority for an additional assured water supply. The applied -for water is in two parts. One part is based on water to be imported from the Big Chino. The other part is for 1672 acre-feet of alternate water based primarily on recharge credits. Prescott's staff and consultants have verified that because of past recharge activity, Prescott is entitled to this quantity of new water. Although ADWR received many objections to Prescott using Big Chino water as an assured water supply, not one objection was received regarding the application for the 1672 acre-feet. This could add another eight years of water allocations, taking Prescott to 2025, with a total possible population of approximately 76,000 (which includes all home sites that have water rights, including the 1998-1999 "Plat Rush" lots). Since there is a good chance that ADWR will rule soon on this application, the Citizens Water Advocacy Group (CWAG) believes it is in the best interests of our citizens for Prescott to wait for the ruling before rushing ahead with the Big Chino pipeline. Why approve pipeline construction when we might not need the water until 2025? Home construction has dropped considerably, and is expected to remain below projections for at least a few years (many experts say it will take at least five years to return to "normal"). However, all of the computations used above are based on the "normal" yearly water allocations. Times have changed. We need to consider whether our previously -planned schedule for Big Chino water needs to be changed. SAFE YIELD We should not ignore our responsibility to reach Safe Yield by 2025. Prescott's Reasonable Growth Initiative, passed in 2005, requires all effluent from developments in large annexation areas go to Safe Yield. We should also apply all water saved through conservation to Safe Yield. We have 17 years to implement other components of a Safe Yield plan. As mentioned above, of the alternate water available now and applied for, 1296 acre-feet is needed to serve all vacant non -watered lots in the city limits at existing densities. The bulk of the rest could go to annexed areas covered by provisions in the initiative. Approximately 2000 to 2500 acre-feet will be available to serve annexed areas (including the already annexed Fann area). Assuming new construction will devote less water to exterior use (as is the trend), Prescott can estimate an effluent amount around 65% of the developments' water use. So using the available and applied -for alternate water supplies, Prescott could expect to contribute approximately 1300 to 1600 acre-feet per year to permanent recharge to help our AMA reach Safe Yield. In addition, if the city establishes a policy that all water conservation savings will be allocated to Safe Yield, then the amount of water we pump in the AMA can be reduced considerably. An achievable goal by 2025 of a 22% per capita water reduction (as in Prescott consultant Herb Dishlip's Safe Yield scenario) would be a major step towards Safe Yield. In September, Prescott Water Management Analyst, Connie Tucker, reported that in just the last four years Prescott has already achieved a 7% reduction in groundwater use per residential unit. In 2025 we may have 70,000 people (33,000 homes) dependant on both AMA groundwater and recharged water. If those homes and associated non-residential use have a reduced demand 22% below the .35 acre-feet per home that ADWR allows, the reduction in pumped water will be 2541 acre-feet per year. Just the above two measures could contribute a total of over 3800 acre-feet towards Safe Yield. Prescott's share of our AMA's 11,000 acre-foot overdraft is still undetermined. If we need to contribute more, and find we need to import more water to do it, we have until 2025 to do our part. ALTERNATIVES There are other alternatives to the Big Chino Pipeline to extend our water supply. One is enhanced water conservation measures for new development and another is using or recharging more rainfall. What if Prescott implemented strong water conservation measures for new developments such as those now being discussed in Chino Valley? Such measures state that city -provided potable water can only be used for exterior landscaping if there is an equal amount of recharge provided. Under such a provision, developers could build more than twice the number of homes on the same amount of available water. The available 1840 acre-feet and the applied -for additional 1672 acre-feet could provide for more than 34 years' water allocations -- possibly taking us to a total population of nearly 100,000. Even less strict measures could produce additional years of new growth. It is unclear how much new usable water could be obtained through a program of use or recharge of rainfall. It is also unclear whether a large-scale rainwater catchment program is economically feasible. The Upper Verde Watershed Protection Coalition has committed to -examining this augmentation opportunity to determine how it may fit into our future water portfolio. The pipeline has been termed a "bridge" to get Prescott and Prescott Valley to a long-term sustainable water supply. Such a supply (possibly from the Colorado River, as is now being considered by a Bureau of Reclamation study) will not be available soon. But if we can get to 2025 without Big Chino water, then we may be able to skip the Big Chino "bridge" and go directly to a sustainable Tong -term supply. We need to wait for the study results (expected in about three years) which will help us define what we need for a sustainable water budget. CWAG believes these and other options should be considered as alternatives to the Big Chino pipeline. According to a Central Arizona Partnership report, Prescott Valley has enough water to grow until 2031. Considering the growth capability of both communities and the financial, legal and environmental issues surrounding the pipeline, CWAG believes it would be prudent to resolve these issues before committing to the Big Chino project. Specifically, the communities would have time to complete a Habitat Conservation Plan, which would resolve the legal and environmental challenges. The above analysis shows that water from the Big Chino may not be needed until 2025 and possibly not at all. In addition, the economy is down. Current new construction impact fees could not cover their share of the annual debt service for the pipeline. We therefore need to move cautiously and prudently, and seriously consider other alternatives first. CWAG is requesting that the City: 1. Establish a working group of staff, council representatives and members of the public to determine the probability that we will need Big Chino water five years from now, ten years from now, and fifteen years from now. 2. Examine what reasonable alternatives we have to enhance our water supply, and compare their costs/benefits to Big Chino water. 3. Not commit to construct the pipeline, or expend sizable funds in furtherance of the project, until the above two tasks are completed and after ADWR issues its rule on Prescott's pending application for assured water based on recharge credits. PRESCOTT CITY COUNCIL COMBINED STUDY SESSION/REGULAR VOTING MEETING TUESDAY, OCTOBER 14, 2008 PRESCOTT, ARIZONA MINUTES OF THE COMBINED STUDY SESSION/REGULAR VOTING MEETING OF THE PRESCOTT CITY COUNCIL held on OCTOBER 14, 2008 in the COUNCIL CHAMBERS located at CITY HALL, 201 SOUTH CORTEZ STREET, Prescott, Arizona. • CALL TO ORDER Mayor Wilson called the meeting to order at 3:01 p.m. • INTRODUCTIONS • INVOCATION: Father John Peck, Prescott Orthodox Christian Church Father Peck gave the invocation. • PLEDGE OF ALLEGIANCE: Councilman Lamerson Councilman Lamerson led the Council and audience in the Pledge of Alliegance. • ROLL CALL: COUNCIL PRESENT: ABSENT: Mayor Wilson Councilman Bell Councilman Lamerson Councilwoman Lopas Councilman Luzius Councilwoman Suttles Councilman Roecker Mayor Wilson said that due to schedules of visitors attending the meeting, Item III -A would be discussed first. A. Presentation of check by the Economic Development Administration (EDA) to Embry -Riddle Aeronautical University in support of their Technology Park Development Project. Economic Development Director Jane Bristol introduced the item, stating that it was formal presentation of a check from the US Economic Development Administration to Embry -Riddle Aeronautics University (ERAU) for $1.9 million in support of their Technology Park Development Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 2 project. She said it is a recognition and celebration of the cooperative efforts between ERAU and the City of Prescott and she recognized the efforts of Councilman Lamerson for his participation in numerous meetings to bring attention to the need, and in addition, Councilman Luzius in his capacity as Prescott's representative to NACOG (Northern Arizona Council of Governments), as well as the Mayor. She said that the grant award was made possible by NACOG who approves applications prior to submission to the EDA and she recognized and thanked the Regional Council for their support of the project, and asked any that were present to come forward. She also recognized the Business Park Development Team and asked them to come forward, Terry Drew (Regional Director of NACOG), Ken Sweet (Executive Director of NACOG), Jacob Macias, Economic Development Representative of the Seattle Region Office of EDA, and Michael Willinger, Project Director and Director of Business and Finance for ERAU in Prescott. Mayor Wilson said that Prescott has a long history of working cooperatively with ERAU. In many ways, ERAU is an overlooked gem Prescott, and he then asked the current Chancellor of ERAU, Dan Carroll, to come forward. Chancellor Carroll said that it was a great day for ERAU and the community. There are several people to be thanked for getting to where they are, beginning with the Mayor and Council. He said that it has been a long relationship that they have found appropriate for both sides and very worthwhile. He thanked Virginia Turner and Governor Napolitano for their support in Northern Arizona, and Max Crow from the US Department of Commerce, and he gave a special thanks to Jane Bristol from the City for her untiring efforts to make it happen. He also thanked Terry Drew and Ken Sweet of NACOG and Jacob Macias from EDA. He said that if they look forward to the EDA funding project, they will find a project that will be a catalyst for economic growth for ERAU as well as for the community. He said there is no doubt that the park will further the mission and vision of the University as well as provide a unique business environment for both campus and community. Looking at going forward, he said they anticipate the kind of businesses that will bring great jobs, with a park that will be sustainable and lead technology. Overall it is a project that they will look on in future years and say they are fortunate to have it. From ERAU, they are thankful to all for their support. Mayor Wilson said that he spent two full days at ERAU during a focus group where they did world cafe brainstorming and he went back out to Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 3 talk with their design team. He then invited Virginia Turner, Governor Napolitano's Northern Arizona representative, to make a few remarks. Ms. Turner said she was very pleased to join them on behalf of Governor Napolitano, who had asked her to extend her congratulations to ERAU, the City of Prescott, NACOG and the U.S. Department of Commerce Economic Development Agency for raising the funds to move ERAU Business Technology Park forward. Matthew Crow, Deputy Assistant Secretary for the U.S. Department of Commerce Economic Development Administration, addressed the audience and thanked the hospitality of the Mayor and Council and thanked everyone for coming. He said that the only way that the country will compete in the 21st century economy is by being competitive, innovative and entrepreneurial and that is why the Commerce Department gave the grant to ERAU. He said that China, India, Malaysia, Russia all have similar structures, but the one thing they lack is the support of the community and the business community in those regions where they have their incubators and tech parks. He said that it is huge credit to the Mayor and Council, citizens, leadership at ERAU, that they receive the grant because the competition for Federal dollars is fierce. After a few more comments he then presented a check to Chancellor Carroll of ERAU. Chancellor Carroll also recognized immediate past Chancellor Pohl who was in the audience. • SUMMARY OF CURRENT OR RECENT EVENTS Mr. Norwood reported that they had nearly 500 cars show up for the annual Household Hazardous Waste Day at the transfer station last weekend. He said that although he was not present today, he wanted to thank Councilman Roecker for his help. He said this is a very successful program and involves regional cooperation among the area cities. Councilman Luzius reported that he attended Casa Blanca that showed over the weekend at the Elks Theater, and although it was not completely full it was a great afternoon. I. PUBLIC COMMENT (Please limit your comments to five minutes) A. Sam Webb re Boys Scouts of America activities in Prescott. Sam Webb, District Executive of Boy Scouts of American, gave a presentation to the Council and public on their activities in the Prescott area. Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 4 B. Tammy Linn re Building Prescott Park One Tile at a Time in Suchitoto, El Salvador. Tammy Linn gave a presentation on the Building Prescott Park One Tile at a Time project in Suchitoto, El Salvador. She then introduced Tracy Williams, owner of Ace's Painting Place, located at 404 W. Goodwin, who is working with Tammy and provides the tiles at a reduced rate, and paint/firing, and also assists with the credit card payments. II. PROCLAMATIONS A. October 2008 — United Way of Yavapai County Month Councilman Bell read the proclamation proclaiming October 2008 as United Way of Yavapai County Month, and presented it to Mike Whiting, Executive Director, and Don Schaeffer. B. October 18, 2008 — American Diabetes Association's Americans Step Out to Fight Diabetes Day in Prescott Councilwoman Lopas read the proclamation proclaiming October 18, 2008 as American Diabetes Association's Americans Step out to Fight Diabetes Day in Prescott, and presented it to Nancy Wahl, Chairman of the Walk this year. Ms. Wahl gave some information on the walk which was taking place on October 18. She said that people could register the morning of the race, or they could register prior to the race on line at www.diabetes.org/stepout. III. PRESENTATIONS B. Presentation of G.E.M. (Going the Extra Mile) Award. Mr. Norwood explained that the GEM Award was part of the City's employee program and was generated from the Raving Fan Award for customer service. He said that they don't give the award out very often; this is only the second one, with the first going to Tim Burkeen. Mr. Norwood said that it is something they take serious and someone has to really go the "extra mile" to be considered. He then presented the award to Becky Garvin for her work as Special Events Coordinator. He said that when a person in charge of the types of events held by Prescott, it has to be done professionally and Ms. Garvin has conveyed that in her work. Ms. Garvin thanked Mr. Norwood and the Council for the award. Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 5 C. Presentation by Kim Haddow as Captain of the U.S. Golf Team at World University Games in South Africa. Paul Parker, Manager of the Antelope Hills Golf Course, introduced Kim Haddow, a teaching professional at the golf course, which he said the City is very fortunate to have. She is a long-time member of the LPGA, coached women's college golf at the University of Arizona and University of Florida and is a member of the College Coaches Hall of Fame. This past summer she was selected to serve as Captain of the Women's USA Team in the World University Games held in South Africa, and they brought home the Gold Medal. She is not only a great ambassador for Antelope Hills, but also for the City of Prescott. Ms. Haddow thanked the Council for the opportunity to share about her trip, and also the City, Paul Parker and all the staff at Antelope Hills for their support over the last three years. Ms. Haddow then gave a PowerPoint presentation that outlined their trip. She said that one thing she heard over and over during the trip from others involved was what a great nation the USA was. She said that the Women's Team won the Gold Medal and the Japanese Men took the Gold. D. Presentation of the Open Space Master Plan by members of the Open Space Acquisition Committee. Michael Byrd, Co -Chairman of the Open Space Acquisition Committee gave a PowerPoint presentation on the Open Space Master Plan, which covered the following items: ► MP Development ► OSAAC Members ► OSAAC Liaisons ► History of OSAAC ► Priority Areas for Acquisition ► Acquisitions ► Open Space Values ► Characteristics Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 6 ► Acquisition Strategies ► Plan Components ► Plan Recommendations ► Adopt plan ► Replace committee with a permanent Open Space Commission ► Establish Open Space Foundaiton ► Review and revise ordinances to increase incentives ► Conduct anyalysis of cost v. benefit of PDR and TDC programs ► Review and update the OSMP within five years ► Community Feedback ► Questions Councilwoman Suttles said that it was an outstanding report and she thanked the group for their work. Mayor Wilson also thanked the entire committee, noting that he attended several of the meetings and a lot of work went into the plan. All members of the committee were then asked to stand up. Councilman Lamerson said that he, too, compliments the committee on the report. He also thanked Mr. Byrd for his comments on the sensitivity to budget constraints and his understanding of the ballot analysis. Councilman Luzius also thanked the group for their work and for their picture of Badger P Mountain. Councilwoman Lopas said that since she was the former chair of the committee, she knows how hard everyone worked on the plan She said that she was very proud of each and every member of the committee. Mr. Norwood said that this will be shared with the other boards/ commissions and staff will incorporate the comments and findings into the General Plan. He said that there may be some things specific that have to come before the Council for action, such as the creation of a commission. Mr. Byrd said that one thing he did omit was that as the plan was in draft form it was taken to the Planning and Zoning Commission and he and Debbie Horton also talked of taking it to the Parks and Recreation Board, although at that time that Board were just getting started. Council agreed that they should move forward with the Plan and take whatever specific action before Council needed to be taken. Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 7 IV. REGULAR AGENDA A. Public Hearing and consideration of a liquor license application submitted by Robert John Elia, applicant for Ariva LLC, for a Series 07, Beer & Wine Bar, license for Papa's Italian Restaurant located at 1124 White Spar Road. Ms. Burke said that this was a new license for an existing business, due to change in ownership. The property had been posted as required by State Statutes, and no public comments had been received. The applicant's wife, Donna Alia, addressed the Council stating that they purchased Papa's six weeks ago and she and her husband and their daughter and son-in-law, along with their 4-year old grandson are running the business. They are very happy and excited to be a part of the community. She said that they came from Tucson where they also had the Contessa Italian Buffet. Councilman Bell welcomed them to Prescott and asked if they were planning to be open for lunch. Ms. Alia said that they are looking to do that in the future. COUNCILWOMAN SUTTLES MOVED TO CLOSE THE PUBLIC HEARING; SECONDED BY COUNCILMAN BELL; PASSED UNANIMOUSLY. COUNCILMAN BELL MOVED TO APPROVE THE LIQUOR LICENSE APPLICATION SUBMITTED BY ROBERT JOHN ELIA, APPLICANT FOR ARIVA LLC, FOR A SERIES 07, BEER & WINE BAR, LICENSE FOR PAPA'S ITALIAN RESTAURANT LOCATED AT 1124 WHITE SPAR ROAD; SECONDED BY COUNCILMAN LUZIUS; PASSED UNANIMOUSLY. B. Approval to purchase and install one replacement HVAC unit and two replacement heating units for the Prescott Police Department from Energy Savings and Cooling in the total amount of $21,510.00. Mr. Fenech said that during a scheduled preventative maintenance inspection, three HVAC units at the Police Department building were red - tagged for excessive carbon monoxide readings. Three bids were received and opened, and staff was recommending the units be purchased through Energy Savings & Cooling. Councilman Lamerson asked if they could get some heating in the Council Chambers. Mr. Fenech explained that the City Hall system takes two days to get up and running once they switch over from cooling to Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 8 heating and as they were expecting a heat wave, they had held off on starting up the heat. Councilman Lamerson said that it looks like they have a health issue and really do not have a choice. COUNCILMAN LUZIUS MOVED TO APPROVE THE PURCHASE OF ONE HVAC UNIT AND TWO HEATING UNITS FROM ENERGY SAVINGS AND COOLING IN THE TOTAL AMOUNT OF $21,510.00; SECONDED BY COUNCILMAN LAMERSON; PASSED UNANIMOUSLY. C. Approval of reimbursement in the amount of $54,317.97 to the Adult Center of Prescott, Inc. for audio-visual and security systems to the Rowle P. Simmons Community Center. Parks and Recreation Director Debbie Horton said that when the Adult Center moved in to the new facility on Rosser Street, it was agreed that the City would reimburse them 50% of the cost of audio-visual system and one-third of the cost of the security system. This request is to reimburse the Adult Center for those expenses. COUNCILMAN LUZIUS MOVED TO APPROVE REIUMBURSEMENT IN THE AMOUNT OF $54,317.97 TO THE ADULT CENTER OF PRESCOTT, INC. FOR AUDIO-VISUAL AND SECURITY SYSTEMS TO THE ROWLE P. SIMMONS COMMUNITY CENTER; SECONDED BY COUNCILMAN LAMERSON; PASSED UNANIMOUSLY. D. Approval to purchase two 2009 Honda ST1300P A9 Motorcycles with emergency equipment from North Valley Motorsports, Inc., on the Arizona Department of Public Safety State Contract #L5-024-002 for the amount of $40,723.90. Police Chief Randy Oaks said that the Police Department obtained a quote for two police equipped motorcycles from North Valley Motorsports, Inc. under the Arizona DPS contract #L5-024-002. He said that the two motorcycles being replaced are from 2001 and will replace units currently being used for training. He said that there is a safety component to this. They currently have four of these types of cycles and have seven officers on them. Three of the remaining cycles are Kawasaki that have not been manufactured since 2005 as a PD cycle. They failed to make modifications that others were doing to incorporate ABS systems, which is a lifesaving system. He said that this was in the budget last year when the vehicle funds were frozen and he would like to replace all three, but this will replace at least two of them. Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 9 Chief Oaks said that there are currently three different manufacturers of Police Department models with ABS and they are Honda, Harley- Davidson and BMW. The Harley-Davidson cost more initially and the Honda and BMW are very comparable. He said that he just returned from a product show in Las Vegas where the City won Best of Show, for being the best equipped. He said that talked with a lot of vendors and officers at that show about motorcycles and was convinced that maintenance on a Honda is about 50% of maintenance on a BMW. Councilwoman Suttles asked what would happen with the Kawasaki cycles being replaced. Chief Oaks said that they would be sold at auction. He said that it is a very limited market, but they are inexpensive cruising bikes for those interested. Councilman Bell asked how long it would take for delivery. Chief Oaks said that the dealer in Ontario said they would arrive in January, and then there is time to have the additional equipment installed, so they should be ready in early Spring. Councilman Luzius said that they have discussed before the need to buy American. He said that he has done some homework and Harley- Davidson has several police models that offer ABS brakes. With the economic downturn, he thinks it is important to buy American, since they have a government that does not have much regard for the borders. He would like to have that considered in the future. Mayor Wilson said that he owned two Harleys when he was younger, but he supports the recommendation of the Chief COUNCILWOMAN SUTTLES MOVED TO APPROVE THE PURCHASE OF TWO 2009 HONDA ST1300P A9 MOTORCYCLES WITH EMERGENCY EQUIPMENT FROM NORTH VALLEY MOTORSPORTS, INC., ON THE ARIZONA DEPARTMENT OF PUBLIC SAFETY STATE CONTRACT #L5-024-002 FOR THE AMOUNT OF $40,723.90; SECONDED BY COUNCILWOMAN LOPAS; PASSED 5-1 WITH COUNCILMAN LUZIUS CASTING THE DISSSENTING VOTE. Adoption of Resolution No. 3908-0914 — A resolution of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, accepting the Special Land Use Permit No. 23-110915-03 provided by the State of Arizona, State Land Department, for the special use of Glassford Hill for public safety communication operations for a five-year period and authorizing the execution of any and all documents to implement same. Emergency Services Director Darrell Willis said that this item is to extend the lease of property where the communications tower is located on Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 10 Glassford Hill. He said that this site will continue to be used as the primary Fire Department communications site until the new Public Safety radio system is operational in 2009 and then it will become a back-up transmission site for both Police and Fire communications. COUNCILMAN LUZIUS MOVED TO ADOPT RESOLUTION NO. 3908- 0914; SECONDED BY COUNCILMAN LAMERSON; PASSED UNANIMOUSLY. F. Authorize amendment in the amount of $14,977.00 to the contract with Modular Solutions, Ltd. For TSA mandated modifications to the temporary terminal expansion unit procured under the emergency procurement provisions of the Procurement Code. Airport Manager Ben Vardiman said that this amendment was due to additional requirements of the TSA for improvements at the temporary terminal expansion unit for security equipment. Due to the critical need of this equipment to function properly to preserve the health, welfare and safety of the public in the national air transportation system, the City authorized the work under the emergency procurement provisions of the City Procurement Code. The work has been completed and the Airport is bringing this change order before Council for authorization as required. Councilwoman Suttles asked if this was something they had to do because of the new Horizon Airlines. Mr. Vardiman said that it was part of the redesign of the terminal which was prompted by Horizon Airlines; at the same time, it is also because they are dealing with a 60 year old building. Councilman Luzius asked what the weight was of the scanning unit. Mr. Vardiman said that the walk-through metal detector is about 150 pounds; the ex -ray machine is around 1,300 pounds, but the next generation which will come out next year will run around 3,000 pounds. Councilman Luzius said that he thought it was overkill but it was required to open the terminal. Mr. Vardiman added that the concrete block was for the walk-through metal detector because it has to be on its own foundation. Councilman Bell asked Mr. Vardiman if he was anticipating any more requirements from TSA that will cost the City money. He said that he heard that they were questioning the venting of the windows in the restaurant. Mr. Vardiman said that he has not heard that, and as far as he knows, there will be no more required. COUNCILMAN LUZIUS MOVED TO AUTHORIZE AMENDMENT IN THE AMOUNT OF $14,977.00 TO THE CONTRACT WITH MODULAR Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 11 SOLUTIONS, LTD. FOR TSA MANDATED MODIFICATIONS TO THE TEMPORARY TERMINAL EXPANSION UNIT PROCURED UNDER THE EMERGENCY PROCUREMENT PROVISIONS OF THE PROCURE- MENT CODE; SECONDED BY COUNCILMAN LUZIUS; PASSED UNANIMOUSLY. G. Approval of a professional services contract with DMJM Harris in an amount not to exceed $129,300.00 for the Airport Area Transportation Plan. Mr. Mattingly said that this item is for approval of a professional services agreement with DMJM Harris in association with Jacobs Engineering to address existing and future transportation planning within the Airport area. He then reviewed the study area Councilman Bell asked where DMJM Harris was located. Mr. Mattingly said that they are out of Phoenix and Jacobs in located in Prescott. He said that the scope of the project includes: scoping/stakeholder meetings; agency scoping; stakeholder coordination; traffic data collection/inventory existing studies; develop initial roadway alternatives; travel demand/ transportation modeling; refine alternatives/sub-area studies; final report. Councilman Bell asked if they took bids on the project. Mr. Mattingly said that it was handled through a direct -select method, done specifically to get the best results and most efficient use of City funds. He said that DMJM has an extensive history of working with the County and City in this area and Jacobs is responsible for the modeling on the 2030 Transportation Plan and has extensive knowledge of CYMPO efforts. Additionally, they are doing the transportation modeling on the Cavan property. In this way, they have built in the expertise and knowledge so they do not have to recreate a lot of the data, which will save the City a lot of money and time. Councilman Bell said that with the economy the way it is, he hates to send another $130,000 to Phoenix. He said that in both DMJM Harris and Jacobs he sees a Project Manager listed, and asked if they need two project managers. Mr. Mattingly said that Jenny Bigsby is the office manager in Phoenix for DMJM and she is project manager. He said that while other firms may bring in a project manager on a study like this and use them on a limited basis, they are getting her to do most of the work. The same is true with Jacobs. He said that they are the best that the firms have to offer. Councilman Bell said that reading through the scope of work there is quite a bit of work and it shows they will have four alternative plans. He asked if they did not have it tied down enough to not know which alternative they Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 12 would use. Mr. Mattingly said that they will look at up to four alternative roadway networks and they will refine and get the best. They also need to coordinate with the terminal location, but they don't know exactly where that will be at this point. The scope had to be written to allow some flexibility. Councilman Bell asked if this was urgent. Mr. Mattingly said that it was, absolutely. He said that it brings together many agencies that have done studies. It is coming to a head, with the future developments, annexations, etc. and this is the heart of growth in the Prescott area. He said that it is on the fast track. Councilwoman Suttles said that the estimated cost of the project is $129,300 but $150,000 was funded. She said that if this goes at $129,000 and it comes back, she asked if they are still within the grace of the budgeted amount or if that amount was moved. Mr. Norwood said that the $21,000 would stay within that fund. They cannot exceed without additional authorization. Councilwoman Suttles asked what would happen if it comes back at $155,000; Mr. Norwood replied that it they would dip into the one percent fund. Councilman Luzius asked if there was a possibility of obtaining Federal grants since it is related to the airport. Mr. Mattingly said that they could check on that, but this project is much larger than just the Airport; it is just in the Airport area. It really focuses on a regional roadway system. The location of the terminal is important, but that is being studied through the other study. At this point, they do not believe there is anything available. COUNCILWOMAN LOPAS MOVED TO APPROVE A PROFESSIONAL SERVICES CONTRACT WITH DMJM HARRIS IN AN AMOUNT NOT TO EXCEED $129,300.00 FOR THE AIRPORT AREA TRANSPORTATION PLAN; SECONDED BY COUNCILWOMAN SUTTLES; PASSED UNANIMOUSLY. H. Approval to purchase aggregate materials from Asphalt Paving & Supply in an amount not to exceed $80,000.00 and from Charter Materials, Flintstone Industries and G&S Gravel, each in an amount not to exceed $7,000.00. Mr. McDowell said that staff merged their efforts between Field Operations, Parks and Recreation and Utilities and solicited bids from local vendors for aggregate materials. By merging their requirements, they were able to obtain better pricing. He said that Asphalt Paving and Supply provided the City with the most successful bids and it is anticipated that at least $80,000 will be spent with them; Charter Materials, Flintstone Industries and G&S gravel were successful on the Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 13 decorative rock, bedding material, river rock and rip rap, and it is anticipated that $20,000 will be spent with those vendors. COUNCILMAN BELL MOVED TO APPROVE PURCHASE OF AGGREGATE MATERIALS FROM ASPHALT PAVING & SUPPLY IN AN AMOUNT NOT TO EXCEED $80,000.00 AND FROM CHARTER MATERIALS, FLINTSTONE INDUSTRIES AND G&S GRAVEL, EACH IN AN AMOUNT NOT TO EXCEED $7,000.00; SECONDED BY COUNCILMAN LUZIUS; PASSED UNANIMOUSLY. I. Approval of Amendment One to City Contract No. 07-271, Downer Trail Pavement and Utility Reconstruction Project, with Fann Contracting, Inc., in the amount of $200,553.72. Mr. Nietupski said that this item and the next both deal with reconciling the contracts and finalizing them. He said that this first one deals with the Downer Trail project, which they had significant issues with utilities. They had to redesign the water main to be constructed, as the work was ongoing. It was very much a challenge and had extensive time requirements, requiring an additional 196 days. He said that every one of the utility companies had to relocate some of their infrastructure and that all had an impact on the contractor's ability to complete the project. Councilman Luzius asked what portion of Downer Trail this project covered. Mr. Nietupski said that it was from Sierry Peaks to Downer Trail. Councilman Luzius said that they are now looking at $1.4 million for completion of the Downer Trail. He sees why the Forest Trails people were concerned with the taxpayers paying so much for Downer Trail. He asked why the City did this project. Mr. Nietupski replied that the City was obligated under the Development Agreement to construct this section of roadway. Councilwoman Suttles asked what the length was of the project. Mr. Nietupski said that it was a little less than 3,000 feet. Councilwoman Suttles asked if the City was not ready for the project. Mr. Nietupski said that they do need to do a better job in the future, but it is difficult when they do a reconstruction of an older street. They have infrastructure underneath that is not readily known. Sandy Griffis, Director of the Yavapai County Contractors Association (YCCA), 810 E. Sheldon, said that they did have some questions on the capital expenditure item. She said that in her capital improvement list it showed $160,000 to be spent on Downer Trail and asked if the $92,000 was coming out of that capital improvement number. Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 14 Mayor Wilson said these were unexpected expenditures, and would not have been identified in the capital improvement plan. Ms. Griffis asked what happens to the CIP money. Mr. Nietupski said that there was budgeted money in 2009, which was represented in the staff memo, where funding would be provided for the cost of the improvement, the water, the sewer and the street. Ms. Grifffis said that the project shows $5,925.60 for sewer, but there is $40,000.00 shown in the 2009 Sewer CIP, with 50% going toward growth. Mr. Nietupski said that there were funds appropriated for the project for sewer, and growth was a necessary part of this project, with Enchanted Canyon, Downer 16, and the Preserve at Prescott. Ms. Griffis asked if there would be money leftover in the CIP for Downer Trail. Mr. Nietupski said that any time they do a project they have a budget. If they exceed on a particular project, the overall fund balance is reduced. If they spend less, then the fund balance is impacted in a positive fashion. There are a number of projects in an overall fund and it is subject to change as the projects come in. He said that they do have adequate reserves for this project. Ms. Griffis asked why they were obligated in this project. Mr. Nietupski said that there was a six -party agreement that made the provision for the improvement to Downer Trail, including surface improvements. COUNCILWOMAN LOPAS MOVED TO APPROVE AMENDMENT ONE TO CITY CONTRACT NO. 07-271, DOWNER TRAIL PAVEMENT AND UTILITY RECONSTRUCTION PROJECT, WITH FANN CONTRACTING, INC., IN THE AMOUNT OF $200,553.72; SECONDED BY COUNCILMAN LAMERSON; PASSED 4-2 WITH COUNCILWOMAN SUTTLES AND COUNCILMAN LUZIUS CASTING THE DISSENTING VOTES. J. Approval of Amendment Three to Contract No. 07-089, Iron Springs Road Improvement Project, with Fann Contracting, Inc., in the amount of $194,387.84. Mr. Nietupski said that the City did achieve a remarkable result on this project, although it was expensive. They spent a lot of effort to make things go smoothly and they had additional expenses with additional paving, and extension of a sewer line west of Williamson Valley Road. He said that this item is the final amendment to finalize the as -built quantities. He said that for a long time there was a cloud regarding Qwest involvement in previous amendments. He said that they have received, Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 15 and Legal is reviewing, a waiver of claims and if it is found to be in good order, they will have no future risks or exposure for this project. Councilwoman Suttles said that they have had three different contract overrides on the Iron Springs Road project; the City decided to pave a parking lot, traffic control changes and then the last one the City wanted additional paving. She asked if there was a reason why two out of the three were not part of the original bid when it went out. Mr. Nietupski said that the additional paving was required when they extended the sewer to the west, as required by the County. The sewer extension was determine necessary after the project was awarded, after inquiries of neighbors and an analysis of the system showed it was not working good. Councilwoman Suttles said that she knows it was a big project and it had to be bid a few times. She appreciated the presentation done a few weeks ago, but she still thinks it could have been done better. She understood that it was not Fann that did any more than what the City asked of him, but each time something like this comes forward, they need to do better. Councilman Luzius said that Mr. Nietupkski had provided him a copy of the agenda memo dated 10/3/06 when they approved the contract, and at that time a citizen got up and made the statement that sometimes contractors will bid low and depend on amendments to make their profit. He said that he was not saying that is what Fann did, but there were only two entities that bid on the project, and it went to Fann because of a $600,000 difference. Mr. Nietupski reminded the Council that they bid the project three different times. When the City receives a bid, it is at a unit price contract, and this had 255 different items. Each contract has the opportunity to provide what his costs will be to compare the bids. It does not provide the end amount; the end amount is the result when the work is accomplished. He said that to say that had the City awarded to the other bidder (which legally it could not do) and suggest that it would have been a lower contract in the end, is not a reasonable statement. Gary Hudder, representing Asphalt Paving & Supply (the other bidder), clarified that when they enter into projects the size of Iron Springs, there are many unforeseen things. There are substantial engineering issues and it is very frustrating for contractors as well as the City engineering staff and Council members. Specific to Councilman Luzius's comments, when change orders are submitted of this magnitude and there are unit cost items, he would not want there to be a concept that there are contractors pocketing funds. Work is additional and that costs them money. They are beholden to a certain profit/overhead and once they Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 16 tack on the understood profit/overhead, they cannot manage the project for Tess than that. They would not enter into a guaranteed not to exceed amount on the Iron Springs Road project. As the unit quantities change, the overall cost of the project will change. Councilman Luzius thanked Mr. Hudder for his candor and coming forward. He said that it was not his intent to say anyone was pocketing funds, but a citizen had come to him, who is very knowledgeable on contracts, to say it can happen. He said that some of the members of the Council are getting tired of cost overruns with the economy being the way it is and the City is looked on as having deep pockets. Mr. Hudder said that they are doing the work on Copper Basin and at any given time they will do the project they said they will do at the unit costs involved, but as the project starts changing, the dollars start changing. Councilman Lamerson said that he lives directly on Copper Basin and he appreciates the hard work being done there. It has been a mess for 30 years, and that infrastructure is old and miserable, and they cannot see under the dirt. He appreciated Mr. Hudder coming forward and defending his competitor and the situation, and said it was an honorable thing to do. Mr. Norwood clarified that after the September 30 workshop, he and Mr. Nietupski met and they are going to do a better job on identifying the projects in the future. When they are doing a residential street that does not have utility issues, they do not see these cost overruns. When they get into the older streets such as Park Avenue, Mt. Vernon, they will have these same issues. They will build in contingencies to the contract, but to think there won't be changes is unrealistic. Councilwoman Suttles said that she thinks they are getting to where they need to be. Councilman Luzius told Mr. Nietupski that it was nothing personal; he does a great job. COUNCILMAN LAMERSON MOVED TO APPROVE AMENDMENT THREE TO CONTRACT NO. 07-089, IRON SPRINGS ROAD IMPROVEMENT PROJECT, WITH FANN CONTRACTING, INC., IN THE AMOUNT OF $194,387.84; SECONDED BY COUNCILWOMAN LOPAS; PASSED 4-2 WITH COUNCILWOMAN SUTTLES AND COUNCILMAN LUZIUS CASTING THE DISSENTING VOTES. K. Approval of reimbursement to Granite Dells Estates Properties, Inc., for expenses for construction of the Airport Zone 18" Second Feed and 12" Water Main Project in an amount not to exceed $1,691,846.40. Mr. Nietupski reviewed this project, noting that it was also a unit -cost contract. Staff's recommendation is for a five percent buffer on the Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 17 amount of the contract award which would only be authorized upon City Manager approval, should there be a justifiable reason. It is included so the amount is "not to exceed" but if a change is more than that amount, it would have to come back before Council. He said that this project is requirement of the Development Agreement with Granite Dells Estates. Councilman Luzius said that he understands this is part of the pre - annexation agreement with Fann and he supports it. Councilman Bell said that he thinks they should note that the bid is about $1 million under the budget. Mr. Nietupski said that was correct; the budget was $2.75 million, the engineer's estimate was $2.25 million and the low bid of $1.579 million from Asphalt Paving & Supply has been confirmed. Mayor Wilson asked what the schedule was for the project. Mr. Nietupski said that the work will start in November with an anticipated completion in March of 2009. COUNCILMAN LUZIUS MOVED TO APPROVE REIMBURSEMENT TO GRANITE DELLS ESTATES PROPERTIES, INC., FOR EXPENSES FOR CONSTRUCTION OF THE AIRPORT ZONE 18" SECOND FEED AND 12" WATER MAIN PROJECT IN AN AMOUNT NOT TO EXEED $1,691,846.40; SECONDED BY COUNCILMAN LAMERSON; PASSED UNANIMOUSLY. L. Approval of the Minutes of the Prescott City Council Joint Study Session/Special Meeting of September 16, 2008, the Regular Voting Meeting of September 23, 2008, the Joint Special Meeting/Workshop of September 30, 2008 and the Joint Workshop with Prescott Valley Town Council of October 1, 2008. COUNCILWOMAN SUTTLES MOVED TO APPROVE THE MINUTES OF THE PRESCOTT CITY COUNCIL JOINT STUDY SESSION/ SPECIAL MEETING OF SEPTEMBER 16, 2008, THE REGULAR VOTING MEETING OF SEPTEMBER 23, 2008, THE JOINT SPECIAL MEETING/WORKSHOP OF SEPTEMBER 30, 2008 AND THE JOINT WORKSHOP WITH PRESCOTT VALLEY TOWN COUNCIL OF OCTOBER 1, 2008; SECONDED BY COUNCILMAN BELL; PASSED UNANIMOUSLY. Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 18 V. ADJOURNMENT There being no further business to be discussion, the Combined Study Session/Regular Voting Meeting of October 14, 2008, adjourned at 5:26 p.m. ATTEST: ELIZABETH A. BURKE, City Clerk JACK D. WILSON, Mayor CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Combined Study Session/Regular Voting Meeting of the City Council of the City of Prescott, Arizona held on the 14th day of October, 2008. I further certify the meeting was duly called and held and that a quorum was present. Dated this day of , 2008. AFFIX CITY SEAL ELIZABETH A. BURKE, City Clerk PRESCOTT CITY COUNCIL COMBINED SPECIAL MEETING/ STUDY SESSION TUESDAY, OCTOBER 21, 2008 PRESCOTT, ARIZONA MINUTES OF THE COMBINED SPECIAL MEETING/STUDY SESSION OF THE PRESCOTT CITY COUNCIL held on OCTOBER 21, 2008 in the COUNCIL CHAMBERS located at CITY HALL, 201 SOUTH CORTEZ STREET, Prescott, Arizona. • CALL TO ORDER Mayor Wilson called the meeting to order at 3:00 p.m. • INTRODUCTIONS • INVOCATION: Pastor John Perry, Alliance Bible Church Pastor Perry gave the invocation. • PLEDGE OF ALLEGIANCE: Councilman Luzius In Councilman Luzius's absence, Mayor Wilson led the Council and audience in the Pledge of Allegiance. • ROLL CALL: PRESENT: ABSENT: Mayor Wilson Councilman Bell Councilman Lamerson Councilwoman Lopas Councilman Roecker Councilwoman Suttles Councilman Luzius Mayor Wilson mentioned that Councilman Luzius was under the weather today, but expected to be back next week. • SUMMARY OF CURRENT OR RECENT EVENTS Mr. Norwood reminded everyone that on Saturday, October 25, 2008, the Prescott Police Department would be holding the "Dump the Drugs Day" from 8:00 a.m. to noon, where expired prescription drugs could be dropped off. Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 2 SPECIAL MEETING I. Acceptance of land donation from the Harold James Family Trust valued at $1.2 million. City Attorney Gary Kidd said that it was his pleasure to announce that the City Council had previously authorized the purchase of the James Property and they were able to go through escrow 25 days early, closing the purchase earlier in the day. He said that they did an environmental report and it along with the surveys was clean. The biggest news, he said, was that part of the purchase entailed a donation agreed to by the Harold James Family Trust. The Trust had agreed to donate the value of the property over and above the purchase price of $4 million. The most recent appraisal came in at $5.2 million, equating to a $1.2 million donation to the City. At this time he turned the presentation over to Parks and Recreation Director Debbie Horton. Ms. Horton gave a PowerPoint presentation to refresh everyone's memory on the property being acquired After the presentation, she invited Councilwoman Lopas forward, who then invited members of the James Family that were present to come forward. Councilwoman Lopas said that as liaison and former Chair of the Open Space Acquisition Advisory Committee, they were thrilled to have the opportunity to receive the property and donation. She then unveiled the new trail marker that would be installed at the beginning of the trail. Mr. Ron James said that it was a beautiful piece of property and they were glad everyone agreed that it needed to be preserved. He said that he can hardly wait to have the trails created on the property and would like to be a part of that development. He thanked the Council for their presentation. Mayor Wilson added that he was grateful that it had come to pass. COUNCILWOMAN LOPAS MOVED TO ACCEPT THE DONATION OF $1.2 MILLION FROM THE HAROLD JAMES FAMILY TRUST TO THE CITY OF PRESCOTT, AND TO APPROVE AND AUTHORIZE THE MAYOR AND STAFF OF THE CITY OF PRESCOTT TO EXECUTE THE ACCEPTANCE OF DONATION DOCUMENT AND ALL FURTHER DOCUMENTS NECESSARY TO ACCEPT AND ACKNOWLEDGE THIS DONATION; UNANIMOUSLY SECONDED AND PASSED UNANIMOUSLY. Mr. Kidd added that he would like to recognize Sal Lutey, attorney for the James Family Trust, and acknowledge his contributions to get the contract through so timely. He said that it was one of the best contract forms he has seen and it was a pleasure to work with him. In turn, Mr. Lutey stated that it had been a real interesting project, since it is not often that lawyers get to work on such positive projects and provide such benefit to the community. He said that it was very Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 3 good to work with Mr. Kidd on the project. He said that they both pulled together and got the project done early, something rewarding for them and the community, and for those that will come after them. I. Adjournment. There being no further business to be discussed during the Special Meeting of the Prescott City Council held on October 21, 2008 it adjourned at 3:12 p.m. STUDY SESSION I. PRESENTATION A. Presentation of recognition by the American Planning Association of the Yavapai County Courthouse Plaza as One of the Great Places in America. Mike Bacon, Planner for the City of Prescott, said that he was pleased to announce that the American Planning Association had recognized the Yavapai County Courthouse Plaza as One of the Great Places in America. He reviewed the application process and showed a video created by Kim Kapin that had been submitted along with the application. He then presented the plaque to Mayor Wilson and Nancy Burgess provided copies of a booklet prepared that outlined the recognition. Mayor Wilson then invited Board of Supervisors Carol Springer forward, at which time he presented a similar plaque to the County. II. DISCUSSION ITEMS A. Approval of disbursement to Habitat for Humanity in the amount of $49,999.99 in CDBG funding for the purchase of tools for the lending program. Grants Administrator, Linda Hartman, said that in April of 2008 the Council approved the City's 2008 Annual Action Plan that included $50,000 for a tool lending program requested by the Prescott Area Habitat for Humanity. This item was for approval of disbursement to Habitat for Humanity in the amount of $49,999.99 for their tool lending program, and she commended Susan Hart for her preparation of the handbook which took six to seven weeks to complete. Councilwoman Suttles asked if it was done through a CDBG grant. Ms. Hartman said that was correct. Councilwoman Suttles said that she was pleased they were able to get it, and asked Ms. Hartman to explain Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 4 the lending process. Ms. Hartman said that some of the tools will be lent to homeowners, and Habitat for Humanity will target ten houses this year and volunteers will use the tools to provide services that would oftentimes be provided by a professional. B. Adoption of Resolution No. 3907-0913 — A resolution of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, authorizing the City of Prescott to enter into an Intergovernmental Agreement with Yavapai County for County provision of motor vehicle fuel for use in City vehicles, and authorizing the Mayor and staff to take any and all steps necessary to accomplish the above. Fire Chief Bruce Martinez said that this resolution would allow the City of Prescott Fire Department to continue use of the County fuel facility at 1100 Commerce Drive for use on the foam trucks at the Airport. He said that this allows them to refuel and remain in close proximity to the Airport. He said that it has been in place since 1999 and the only changes are for them to take more security measures. There is no change in cost of the fuel. C. Adoption of Resolution No. 3909-0915 — A resolution of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, authorizing the City of Prescott to enter into an Intergovernmental Agreement and a Mutual Aid Compact Agreement with the Arizona Department of Emergency and Military Affairs for mutual assistance during emergencies, and authorizing the Mayor and staff to take any and all steps necessary to accomplish the above. Emergency Services Director Darrell Willis said that the State of Arizona has never had a statewide mutual aid agreement, but after 9/11 and Hurricane Katrina FEMA was told to retool, and this is part of that. This is part of a national program to allow communities to have a mutual aid program. In the past they have used the Wildland Mutual Aid agreement, but this formalizes the process. D. Approval to purchase crack sealant from Crafco, Inc., in a not -to -exceed amount of $60,000.00, through the ADOT's (Arizona Department of Transportation) contract. Chad McDowell said that the City has an annual program where they crack seal the cracks on the roads to preserve them. It has been an improved method of maintenance, and they are looking to piggyback off ADOT's contract. He said that they have used Crafco in the past. Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 5 E. Approval to purchase 95 front -loading containers from Action Container Solutions in the amount of $80,199.95. Mr. McDowell said that this is the City's annual program for replacing the metal dumpsters provided to businesses. He said that they often become a safety hazard, so they like to replace them annually, although they only replace those that need to be replaced, so it is a not -to -exceed amount. F. Award of a five-year contract to Fann Contracting, Inc., for hauling services in the amount of $12.79 per ton, with an amount not to exceed $805,770.00 per year. Mr. McDowell said that this item is for award of a five-year contract for hauling services. Councilman Bell declared a conflict of interest on this item as well as Item H. Councilwoman Suttles noted that they would be pulled from the Consent Agenda. Mr. McDowell said that every five years the City goes out for bids for this service. He said that Fann Contracting was not the lowest bidder, Ash Fork Sanitation was, but they did not have an Arizona Contractors License or a Department of Transportation License which enables the City to check how they are operating. He said that Ash Fork Sanitation was the low bidder five years ago, but were not awarded the contract then. He said that there was a draft contract in the packet and the fuel charge works both ways, benefiting the City and the contractor. Mr. Fann noted that the vehicles would be all diesel. Councilwoman Suttles asked how long Fann Contracting has been in the refuse transport business. Mr. Fann, 450 Whetstine, said that they have been in the hauling business for 48 years, but this is their first venture into hauling refuse. Councilwoman Suttles asked if they would be bidding in other areas. Mr. Fann replied that it was not likely. G. Adoption of Ordinance No. 4673-0916 — An ordinance of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, vacating and abandoning certain municipal rights -of -way which consist of portions of Garden Street and an alley located west of and parallel to Grove Avenue south of Sheldon Street and sell and convey to Prescott College and authorizing the Mayor and City staff to take all necessary steps to effectuate such vacations and abandonments. Public Works Director Mark Nietupski said that this is a request from Prescott College to abandon a segment of Garden Street south of Sheldon Street in the vicinity of Butte Creek and the alley west of and parallel to Grove Avenue between Western Drive and Sheldon Street. He said that the portion of Garden Street is unimproved with a large portion Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 6 of the right-of-way in the Butte Creek floodplain, making it inaccessible to vehicular traffic. He said that there are no plans to improve this segment of Garden Street due to the limited benefit it would provide and the significant cost of bridging Butte Creek. Existing utilities located in Garden Street will require a public utilities easements be retained. Mr. Nietupski said that the alley is improved, although in poor condition, and contains all available public utilities requiring a public utilities easement be retained for further operations and maintenance. He said that the College's abandonment request is to improve pedestrian safety. Mr. Nietupski said that the City has received a Letter of Understanding from the College that should any improvements to the alley be approved for pedestrian use, any maintenance/repairs would not cause any cost to the City. He added that there have been concerns by the neighbors to the request as sometimes they use the alley for a cut -through, although that is not the typical intended use. After a request by Councilman Lamerson, Mr. Nietupski clarified that the request includes two separate areas —one being the roadway and the other the alley. He said that the street was previously closed by the City, based on a prior request of the neighbors; the alley itself is a new request. Councilwoman Suttles asked how many homes back up to the alley. Mr. Nietupski said that the area of requested abandonment, on both sides, is owned by the college; there are no private residences. Teresa Reeser, 636 Western, said that Garden Street was previously closed because the City no longer wanted to maintain the floodway; the residents in the area had requested that it be kept open. She said, as far as the alley goes, they have a hard time getting out of their neighborhood because of Grove Avenue. She said that the intersection at Willow and Sheldon is not even a full roadway, and they cannot make a complete turn. She said that she talked with someone in the City's Engineering Department when she was told that would be their way out, and he did call and say it is a very dangerous intersection and he would see what they could do. She said that the College has three parking lots. She said that her neighborhood is full of elderly people who are scared to cross Grove and they use the alley to get out. Mr. Nietupski showed the location of the street and alley and said he had driven both directions and have navigated fine. Mayor Wilson asked why the alley would be safer than a road. Ms. Reeser replied that they cannot turn on the road. She said that people take Sheldon as a shortcut to miss all of the lights on Grove and they have counted at least 150 cars using Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 7 that within a three-hour period. She said that she personally counted 73 cars in a 40-minute period on her road. She does not think she should have to go 2'h blocks to catch the light. Jean Phillips, 1001 Norris Road, which she said is beyond the area being discussed. She said that she has been in the City for many years and the reason the City closed Garden Street was that it was in the flood area and when the creek runs, which runs through her parcel as well, it floods in a low spot. She said that years ago they had a low-water crossing which was documented by a newspaper front page celebration. She said that she is surprised to hear that anyone from the public requested that Garden be closed because at that time they were fighting to keep it open. She said that the whole area is an invasion of the College property into the neighborhood, bit by bit. he said that they have tried to be friendly with the College and they don't question the students when they're exercising and walking on their streets. She said that they would prefer to have it stay the way it is and not have it get worse. Howard Mechanic, 309 Bloom Place, said that previous mention had been made of the College's parking Tots and asked if those would continue to be used. Mr. Netupski said that the City would review any improvements associated with the alley before approval was given for emergency services to access. Steven Coury, 1165 Western Ridge Road, Executive Vice President for Prescott College, said that it was the College's intent to close off the alleyway to drive -through traffic, including interior parking, the entire section of the alleyway along the College's property boundaries. He said that the only other property owner between Sheldon and Western is the credit union and they are not asking for abandonment of that section, and have been very supportive of the request. Mr. Coury said that they will provide emergency vehicle access and City and utility vehicles. They will also landscape the interior portion to encourage safe pedestrian travel, and the parking area will become landscaped as well. He said that the College has 1,000 students, with 500 of them on campus every day. Another 500 are there for extended weeks throughout the year, along with just under 200 employees. Within that high density urban space there is a lot of activity. He said that when the numbers were smaller and there was less activity, it was not such a problem, but today the activity is significant and that is the nature of the request. Councilwoman Suttles asked how they will close the area down to traffic but still allow emergency access. Mr. Coury said that they have had Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 8 several conversations with Fire and Police, and that is yet to be determined. Councilwoman Lopas asked if they were just getting rid of the parking, or if it was being shuffled elsewhere. Mr. Coury said that they have been working to acquire additional property for parking; one parcel was the one behind the DES building they recently acquired. He said that they also have a long-term lease on what used to be the Stanley Lumber Facility on the far end of Garden and that is becoming a parking area. Councilman Roecker asked Mr. Coury his thoughts on the difficulty of turning at the intersection of Willow. Mr. Coury said that he is doubly concerned with access on Grove. They have a long-term residency on old Campbell and even with the controlled intersection it can be a hazard. He said that the streets, however, do not create a delay in travel. He said that he is familiar with that corner and has traveled around it; it is safer than the alternative. Councilman Lamerson asked if the street was given to the College when it was closed. Mr. Nietupski said that it was not; it is still the property of the City. Steve Reeser, 636 Western, said that his concern is with access. He said that the Willow and Sheldon intersection is bad, especially when they meet another vehicle. He said that trying to get across Grove is horrible because of the parallel parking on either side of Grove and the bushes that have grown to where they can't see over them. He said that Garden Street was closed by the City for Prescott College to use in their riparian area. He said that it is terraced and they can't get through unless they walk. There have been other things built in that easement prior to that and they should all be looked at. He said that it was a viable access to the neighborhood. Councilman Roecker asked if staff could deal with some of the issues as far as safety was concerned, to accommodate both concerns. Mr. Nietupski said that before the next meeting staff will take a closer look at the issues raised regarding two-way traffic at Sheldon/Willow to see what mitigation could be provided. Mayor Wilson suggested that they include Ian, Mr. Coury and the neighborhood to find some joint resolution. Rita Smith, 794 Norris, said that she would like the Council to go up the "T" in the road and drive back going from south to north to see how dangerous the road is. She said that if that is the road that everyone should use, they will have a big mess. Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 9 Councilwoman Suttles said that Mr. Norwood is scheduling a tour for the Council to visit the neighborhood. Steve Blair, 1802 Northside, said that he sat on the Council and heard how the neighbors did not want streets closed. He said that every time the City makes a decision to close a road it impedes traffic. Garden should have never been closed. It was owned by the taxpayers and had been barricaded by Prescott College. He said that a traffic impact study should be done before closing downing another access point. He said that he appreciates Prescott College and he helped secure the DES Building, but they do not have designated parking for their outreach center, and from what he heard they are removing more parking. He suggested that the City Planning Department do a full analysis of parking that is required. H. Award of bid to Fann Contracting, Inc. for the North Prescott Regional Force Main Replacement Project, along State Highway 89 from Lillian Lane to Willow Creek, in an amount not to exceed $4,081,000.00. Councilman Bell declared a conflict of interest. Mr. Nietupski said that this item is to award a bid and contract for construction services required to provide sewer improvements along the segment of State Highway 89, from Lillian Lane to Willow Creek. He said that the City went out to bid, and received bids from six firms, with Fann Contracting submitting the lowest, responsive, responsible bid. Mr. Nietupski said that the recommended contract amount is the contract bid amount of $3,886,407.61 plus 5% ($194,592.39) for a total not to exceed amount of $4,081,000. City Manager approval would be required to exceed the bid amount based on appropriate justification. City Council approval would be required above the total not to exceed amount of $4,081,000. Councilwoman Suttles asked if it was a simple replacement, and if they would be using the same ditch. Mr. Nietupski said that it will be a larger line and will need to be excavated deeper. He said that the pipe materials being installed are higher quality so this won't be a future reoccurrence. Mayor Wilson asked how they will deal with sewage flow while they are replacing the line. Mike Fann said that the contract calls for a pump around of the existing sewer flow while they install the new line. Councilman Lamerson asked why there is a difference between the contractor's bid and the engineer's estimate. Mr. Nietupski said that the market is volatile. The engineers have to take into consideration the cost of fuels, materials, labor, etc., an no one knows those costs better than the contractor. He said that the engineer does not attempt to determine Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 10 what the cost will be; the engineer was conservative on this project. He said that there is a broad distribution of cost from $3.8 million to $5.5 million. Everyone looked at the project differently. Mayor Wilson noted that two years ago they were having a hard time getting a bid because it was going so crazy; now they are getting multiple bids and they are coming in under the engineer's estimate. Adoption of Ordinance No. 4672-0915 — An ordinance of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, authorizing the purchase of real properties, easements and improvements belonging to Douglas Heffner, Loren J. Ridley, James S. and Lucy Greeneich, and the acquisition of certain rights -of -way, drainage easements and temporary construction easements thereform for the widening of Williamson Valley Road, and authorizing the Mayor and City staff to take all necessary steps to effectuate said purchases. Mr. Nietupski said that this ordinance will authorize the acquisition of various rights -of -way, drainage easements and temporary construction easements necessary for the Williamson Valley Road Improvement project. J. Approval of Amendment One to City Contract #08-207 with Saguaro GeoServices, Inc., for professional engineering services for Lowe's retaining wall design review in the amount of $22,206.80 (reimbursed by Lowe's). Mr. Nietupski said that this item is to amend the City contract with Saguaro Geoservices, Inc. for Lowe's Wall Repair Analysis to provide compensation for additional design review required for a soldier pile wall with tie -back reinforcements to remediate the Lowe's wall failure. He said that during the past several months Lowe's has evaluated three separate remedial designs: a tie -back retaining wall, a soil nail retaining wall and a soil buttress concept. Geoservices, Inc. has provided detailed analysis and comments on all three concepts on behalf of the City. He said that Lowe's has submitted a letter to the City committing to reimburse the City for the total contract amount of $40,826.80. To date, the City has paid Saguaro Geoservices, Inc. $18,620 and invoiced Lowe's for reimbursement of that expenditure. Councilman Roecker asked if the City was loaning Lowe's $22,000. Mr. Nietupski said that the City is providing independent review of the design proposals of Lowe's. It was Lowe's failure and the City is not going to be burdened with the cost, so Lowe's has agreed to reimburse the City for their review expenses. He said that the City pays for the services directly so there is no "fox in the hen house." Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 11 Councilman Roecker said that with the way that Lowe's has acted through the whole issue he would suggest that they give the City the money first. He said that they did a lot of harm to the community and he doesn't want to be waiting on them. Councilman Bell said that they should not make the payment to the engineers until Lowe's has paid the City. Councilwoman Suttles said that she is seeing it from a different direction; that it is great to see Lowe's get of the dime. She asked if they would be going through this process continually until the wall is up. Mr. Nietupski said that he hoped not. He said that the City could request that Lowe's make the payment to the City in advance of the City proceeding. Mayor Wilson said that it is a separation of control. He is okay with moving forward, but if the Council prefers to have the payment in hand before the City pays for the services, he would support that as well. Mr. Nietupski said that Lowe's does have an engineer doing the design and an independent engineer doing the review. This is a third engineer reviewing the plans to ensure the City is getting an appropriate design. Council agreed to keep this item off the Consent Agenda and contact Lowe's for payment prior to paying for the services. K. Approval of a professional services agreement with J2 Engineering and Environmental Design for engineering services to update the FEMA flood plain determination of Granite Creek in an amount not to exceed $92,935.00 (reimbursed by Yavapai County Flood Control District). Mr. Nietupski said that this item was to approve a professional services agreement with J2 Engineering and Environmental Design, LLC for the engineering analysis, preparation and submittal of an updated FEMA floodplain determination for all of Granite Creek with the City. He said that it will also include updating the 1996 City of Prescott Area Drainage Master Plan Hydrologic Modeling Report which will provide storm flow analysis for all named creeks with the City limits. Councilman Lamerson asked if Prescott Creeks has had any collaboration on the project. Mr. Nietupski said that they have not; it is purely about delineation of the floodplain. Councilman Lamerson asked if Prescott Creeks was involved in any way. After additional discussion, Councilman Lamerson asked that the item be pulled from the Consent Agenda. Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 12 L. Water and Sewer Development Fees: 1. Adoption of Water and Wastewater Capital Improvement Plans. 2. Adoption of Ordinance No. 4665-0908 — An ordinance of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, amending Title II, Chapter 2-1 and Title III, Chapter 3-14, of the Prescott City Code, regarding the imposition of water and sewer development fees. Deputy City Manager Craig McConnell said that this item was last considered on August 26, when the subject was rescheduled to today's meeting to allow additional time for dialogue with construction industry representatives. He said that the City engaged Economists.com, a rate and impact fee expert, to look at the rates/impact fees and to do that they had several objectives: 1) assure a stable financial footing for water and sewer enterprises, which includes rates (existing) and monies generated from impact fees or other financial tools; 2) continue quality infrastructure to the City's customers; and 3) achieve the Council's goal for a first-class utility system. He said that Mr. Jackson has pointed out before that the cost of operating and maintaining systems are rising. In May, water and sewer rates were adjusted and are now in effect supporting both rising costs and rehabilitation work. Part of the work has been accomplished which was a fundamental purpose. He said that raising rates/fees is a difficult proposition; the City is sensitive to the concept of raising rates. He said that the City's ratepayers are making their contribution to the cost of maintaining those systems, and this item is the second component. He said that if the City is going to have a policy of encouraging reasonable growth, they need to be prepared with infrastructure. In order to accomplish that it requires funding from some source or financing tool. He then reviewed the legal definition of impact fees. He said that the process sounds simple, but it requires a 250-page report and an expert that knows how to do these things because it all has to fit together. A ten-year financial plan is the basis for this report, but it also looks at projections well into the future to make sure that things will work as well in the future years. Mr. McConnell said that if impact fees are reduced, the funding is reduced for new infrastructure, so the implication is that projects have to be deferred or deleted. There is a relationship between the two. He said that the packet information also included some numbers for building activity Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 13 and also information on legitimate projects. Despite the economy, over the next few years there are projects that look like they will go to construction. Many of them are about multi -family residential development. He said that in the Council memo, some alternatives were expressed on the CIP which are being proposed. The Council could adopt the plans and fees to become effective January 11, 2009; the Council could adopt reduced fees; the Council could adopt the fees, but defer implementation of the fees, or they could take no action. He said that those are four alternatives and combinations; there are also other alternatives which could include looking at the financing tools themselves. The City's mechanism for providing infrastructure is currently impact fees. That is the way the Economists.com report was created; it assumed that the City would continue with its present financing method. That does not mean that there are not other tools, such as construction sales tax, but the City's mechanism today has been impact fees. Mr. McConnell said that his last point is that there has been some discussion of the study, which has been presented to the Council and is available on the website, reviewed by various parties. Even if the Council chooses another alternative, that does not mean that the study is invalid or has not been a productive effort. The reasons are 1) the study had two components — rates and impact fees. On the basis of the study, the Council adopted the new rates. 2) The sewer system has not been looked at for decades. The needs for new capacity and rehab are substantial and the sewer model has been completed that identify those needs. Those results were input into this study and a different basis for the sewer rates was provided, and they now have the costs of what their capital needs are for sewer, which they never had before. 3) This study has provided an opportunity for the City to look at its water resource development fee, and how the City prices water. Councilman Bell asked if it had not been discussed at one time that the fees could be due at time of Certificate of Occupancy rather than at time of permit, which would keep the contractors from having to come up with the funds in the beginning. Mr. McConnell said there is some flexibility in the Statutes with deferring payment of the fees. Presently the City collects at time of building permit, but it could be deferred. His recollection is that the deferral is only available through a Development Agreement. Mayor Wilson said that Mr. Spitzer discussed that when they talked about the future phases of his development, and it was required through a Development Agreement. Councilman Bell said that he has looked at the issue over and over and knows they need the money to do the capital projects. Considering the Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 14 challenging economic times, he would come down on Option 3 as best, to delay the imposition of the fees. He said that they could adopt the fees, but delay implementation to July 11, 2009 to give them a chance to recover. Councilwoman Suttles said that they have talked about this many times. The contractors wanted more time to delve into this and find other types of funding. They have always look at impact fees to take care of growth and there are other options available; she believes they need to try to work through this with both groups and come up with something. She then referred to Attachment A of the packet. Mr. Mcconnell said that Attachment A is a summary of capital projects. It is not that they can't be changed, but if the City is going to accomplish that package of projects in the time frames, and that total amount of money consists of two components, as required by law, the first is the rehab needs to fix existing deficiencies, that cannot be recovered by impact fees. The new growth needs are covered by impact fees and the two components make up the program. Councilwoman Suttles said that if they do not get into some funding, then they reduce funding to a lot of different projects they have. Mr. McConnell said that one other point is that what is not in the CIP are specific projects with the annexation areas. They have major annexations coming in with State Land properties, Cavan, Deep Well Ranch and the CIP costs do not include the infrastructure needed within those lands because they do not have the land use established for them. He said that a lot of that infrastructure cost is the responsibility of the contractor, but there is still responsibility of the City. Councilwoman Suttles said that she would like to see what others have to say, but she thinks the study stands on its own. Councilman Lamerson thanked Mr. Jackson for the report, and said he thought it was very good, the information was accurate, and he did exactly what was asked of him by the City. He said that there may be other areas which they could be looking at, but he feels that growth should pay for growth. It is not only law, it is the charter of the City of Prescott. Councilman Roecker asked why they could not delve into the other hybrid solutions. Mr. McConnell said that it depends on how they define "hybrid." There are alternatives, different variations on impact fees per se, but it would not be their recommendation that the Council attempt to create hybrids at this point of impact fees without a substantial and extensive Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 15 discussion of that. If there are pros and cons for impact fees, there are also pros and cons for the other types as well. Mr. Jackson of Economists.com thanked the Council for the opportunity to speak, noting that it was his fifth presentation to Council regarding his study. He then gave a PowerPoint presentation which addressed the following items: ► What is an Impact Fee? ► Why are Impact Fees Increasing? ► Overview if 2008 Rate/Impact Fee Study ► Impact Fee Implementation Process ► Water and Wastewater Impact Fees ► Water and Wastewater Impact Fees — 5/8" Residential Connection Mr. Jackson noted that this showed a 18.9% increase in the rates; however that increase is in line with what they have asked the current water and wastewater users to pay. ► Comparison of cost increases ► 45 Day Review Process — Background ► Rate and Impact Fee Study — Questions Addressed ► Staff and Project Team Recommendation ► Presentation Summary Councilman Bell asked if the 75 days for implementation after it is adopted, is the minimum time frame allowed. Mr. Jackson replied that was correct. Councilwoman Suttles said that Page 6 states that impact fees will be reviewed every two years, and asked if they had done that. Mr. Jackson said that they have not done anything in almost 20 years on wastewater fees Councilwoman Suttles asked if that review is a full-blown study or if it is something down in house. Mr. Jackson said that there are cities and clients that do their updates on their own. He said that it is an advantage and saves money, but oftentimes they have a staff that is already burdened with a lot of responsibility, and the outside person is like a Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 16 temporary employee. In addition, he said, it also gives Council and policy setters the advantage of being able to see what other communities are doing He said that he would recommend a full-blown study, but if they were chosen again, the fees would not be near as high because the models have been built; there is a lot of work that would not be required the second time. Councilman Bell asked Mr. Norwood if he would anticipate a flood of people coming in to beat the increases if they had a six-month delay in implementation. Mr. Norwood said that he does not think they would see a huge surge. Mayor Wilson said that if they entertain that, he would like to see a report from Mr. McConnell about what projects would be deferred for six months. Mr. Jackson said that a big key in any delay is if they anticipate any large meters coming on line. Councilman Lamerson said that he has maintained all along that solely relying on impact fees is not right, but if that is the policy they have, he does not think that delaying it is an advantage. He said that he is a little disappointed that someone has not grasped that there are other alternatives, but he would not support delaying it. Jack Helman, 849 Flying U Court, complimented the editorial in the newspaper, and also the two presenters, noting that he found it very educational. He asked Mr. McConnell if he or anyone on his staff found anything in the Economists.com report questionable. Mr. McConnell said that he, his staff, finance, the Manager's office, analysts, etc. have been involved in the study process and reviewed the documents. They used the 45-day period to consider any questions that have been raised, and it is their conclusion that the study is complete, competent and legally sufficient to the requirements of ARS for studies of this type. Mr. Helman said that he does not understand why after paying $137,000 for a report, and having it reviewed by City staff and Council members, they are still flailing around. He said that as a user of the facilities, he does not recall any opportunity for him to contest or argue the rate increases he just had. Mayor Wilson said that there had been public hearings held on the rate increases. Steve Blair, 1802 Northside, said that he was concerned about the slide showing that the use of fixture counts for determining rates was going away. He said that a year ago he offered to pay his impact fees and was told he was not required to pay one. He said that they had a pipebursting project done a few years ago to oversize the line on Ruth. There was no new construction on the line, yet they are holding people responsible for Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 17 those based on impact fees. He would like to provide an opportunity to get all of these done through a property bond, rather than sending all of their commercial development to Prescott Valley or Chino Valley. He said that the contractor that builds new pipelines in a development has that expect, then they are told to pay again for usage on the line. He calls that double taxation. Mr. Blair said that there was no impact fee in the community until 1994. He asked how they would get all of the money from the homeowners who built before that time. Mayor Wilson said that he preferred to walk forward rather than focus on water under the bridge. Mr. McConnell said that there was a sewer line in Ruth Street which needed to be replaced and they used the pipebursting technique. He said that if the sewer line had been replaced at its existing diameter, then the sewer rate payers would be responsible. If it was oversized to have additional capacity, then that component, and only that component, could be charged to impact fees. Councilman Blair said that he finds it concerning to him that a 2" commercial meter will increase 100% with this new fee schedule. He is concerned with what it does for commercial projects at the airport. He said that the Mayor had campaigned on stopping growth and this will do it. Mayor Wilson said that he was misstating him; he never said he would stop growth, just have controlled growth. Councilman Roecker asked what Prescott Valley and Chino Valley have done in the way of impact fees. Mr. Jackson said that Flagstaff may have held off on their fees; Chino Valley has not. Mr. McConnell said that whether they are called an impact fee or capacity charge, they have had some type of fee since 1980 in the City; at that time it was called a buy -in charge. Councilman Roecker asked Brad Fain what the status of the impact fees in Prescott Valley was on commercial development. Mr. Fain said that they have waived them for commercial development. Mr. McConnell said that was the source of litigation with the Homebuilders of Central Arizona. Sandy Grifffis, Yavapai County Contractors Association, 810 E. Sheldon, said that the YCCA had prepared a handout which was then distributed to the Council. She said that building for tomorrow is not going to be easy, and they all want to make Prescott an enterprising City with the right infrastructure program. She said that they know and agree that every community requires infrastructure to make it functional. The question is how best to meet the needs of Prescott. Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 18 Ms. Griffis said that the Council saddled the YCCA with the task of coming up with alternatives, but prior to that they felt it was important to get their arms around Mr. Jacksons's report. As they did that they discovered that there were data discrepancies in the report as compared to the City of Prescott's CIP. She said that there are errors in the report and no one has approached them to define what they are. Mr. Jackson said that during the last 45 days they were asked numerous questions about the data in the report. It is a difficult report to understand; they have to understand the information they are looking at. Just because two numbers are not the same does not mean there is a discrepancy if they are not looking at the same numbers. He said that an example is that one table refers to customer accounts --the other is ERU's. One section of the CIP only includes nine years; another is ten years. He said that the job of an analyst is to look at the numbers and understand if they apply to impact fees or rates, and apply appropriate. He said that there are no discrepancies in the report. Ms. Griffis said that there are discrepancies and she would love to meet with them to review. Based on the tools they were given, they worked extremely diligently. She said that she was not there to punch holes in Mr. Jackson's report, and she thanked him personally adding that she did learn a lot. She said that their real question is what the real numbers are. They did not see how the Council can make a decision without know what the real numbers are. They have to be on the same page. She said that they are not against impact fees. They are not attempting to postpone or object, and they agree that growth should pay for growth. However, innovative alternatives can make a difference and the options and alternatives are seemingly endless. Their group came up with over 23 alternatives and several have been used successfully. She said that she does not know if any of them are the direction in which the Council wants to head, but they cannot make that decision until they know what the real numbers are. She said that DPF&G came up with five alternatives that were geared to growth and they were asking that they be creative, innovative and that Council help them become engaged in a decision that will work. If it takes six months, they have intelligent people, Leslie, Mr. Danforth, nonprofits, and they all need to be a collective group and work together. Mayor Wilson said that it was stated that contractors do not oppose impact fees and do not support a delay. He asked if she would support the Council passing the current impact fees as presented. Ms. Griffis said Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 19 not today as there are issues with the fees and it needs more work. The issue is the inconsistencies in data. Ms. Griffis said that an example is in her packet the total water fee capital improvement from the City, based on what Mr. McConnell gave her, numbers were $27 million. The Economist.com report shows $201 million. She was taking the total for years 2009 through 2018. Mr. Jackson said that he has not seen the information she was referring to, but he cannot possibly see how it could be true. The CIP is a massive plan of 200 projects and the City has not reduced it by 90%. Mr. Jackson, referring to the slide of the presentation, for 2008 to 2017 the resource development fee and water system impact fees need to be added together, which comes out to $230,000. He said that in one of the schedule in the study the water CIP is $201 because it is for 2009 through 2017. If they included all ten years, they would be overcharging. He said that in 2008 all of the CIP projects were funded by a prior bond, so they would be double dipping. Councilman Roecker said that the economy is in dire straights. He is desperately looking for a compromise. They do not want to kill growth entirely, but they do want it to pay for itself. He asked Ms. Griffis, after having the additional 45 days, if they were able to put a number on impact fees that their group would support. Ms. Griffis said that they did not approach it from a new bottom line for impact fees. She said that the choices they are leaving the Council with are 1) the economy is slow, the timing is not good, and she asked why they cannot sit down as a group. Councilman Roecker said that they are not going to get on the "treadmill cycle"; they have to set a rate to move forward. Ms. Griffis said that they should then leave them like they are and look at other alternatives. Mayor Wilson said that he believed the report was correct and they should pass the rates as proposed. They can then sit down and look at alternatives, but if they don't, they will never increase the rates. Councilman Roecker said that the upside is that they review these fees every two years so this is not the end of the end. Councilwoman Lopas thanked Ms. Griffis for her report, stating it was interesting reading. She said that in looking at the alternatives, a construction tax of 4%, based on a $250,000 house would be a $6,500 fee, while they are current proposing something much less than that. Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 20 Ms. Griffis said that it is a viable alternative. She said that in the Council packet there was a list of deferred infrastructure items, and they found it surprising that every one of the items was being deferred in future years. She asked why they would not defer something facing them right now. Mr. McConnell said that it is a ten-year planning period. Projects they have in process now are constructed typically no earlier than the third year because of design and property acquisition. Mayor Wilson said that as soon as they start losing money, they are losing projects. Dave Maurer, Executive Director of the Prescott Chamber of Commerce, said that after weeks of study they were still reasonably confused and felt it was complex so they employed an outside, neutral firm to review the Economist.com report. He said that the Council has their 26-page report which raises a series of questions. He said that if he was sitting in the Council's seat, he would want to know that everything lines up in the report. Councilman Roecker asked if they passed what they have in front of them, but with the delay Councilman Bell suggested, if the law would allow them to reduce the rates without going through another study. Mr. McConnell said that the study identified the maximum rates that could be charged; the Council has the latitude to charge lower rates or make them effective at a different time. Mayor Wilson asked Mr. McConnell for both his and Mr. Jackson's response to the report prepared by DPF&G. Mr. McConnell said that Mr. Jackson prepared a written response to their report, working over the weekend and it was given to the YCCA during the meeting. He believes that Mr. Jackson's response to the report is accurate. He understands that Mr. Jackson has a much more detailed response to each of the questions raised, but the bottom line is that staff is comfortable with Mr. Jackson's study and his response to the DPF&G report. Mr. Jackson said that he did have a chance to review the report and they did raise issues, none of which had any credibility. The report has a lot of misstatements of fact and a lot of incorrect statements. The analysis was flawed. They did not find it to be credible. He said that they did not find any of their findings to merit any revisions at all in his study. They are fully confident and stand behind the accuracy of the Economist.com study. Bill Matthews, 1806 Pony Soldier Road, past president of YCCA and currently serving on the board, said that he had a different perspective. They realize that impact fees are part of the culture in Prescott and always have been, regardless of what they were called. He said that in years past their director, Ethan Edwards, stood before the Council Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 21 regarding impact fees and they all worked hard and came up with some good things. Things have changed. The Council .cannot expect the revenue stated to be accurate in this time, with only 100 building starts this year. He said that everyone he has talked with has nothing on the table. They are not going to raise the kind of money they need and they need to look at some reasonable impact fees and different methods of funding the infrastructure needs of the City. They need to get outside their box and look at a comprehensive funding approach. He said that they have been focused on impact fees and rate changes, when they need to be focused on how they will develop the old town and maintain the economic health of it. He said that in a competitive nature, they need to look at the startling increases in commercial impact fees. Those are well over 100% and more. There are thousands of dollars in commercial impact fee increases, while Prescott Valley has suspended theirs. They need to look at an economic stimulus package for Prescott to encourage reasonable and sustainable growth, which is not occurring. Howard Mechanic, 309 Bloom Place, said that he participated in some of the meetings held over the past 45 days, and he wanted to thank staff and the consultants. Many times the questions were given numerous time. He said that he appreciated Ms. Griffis saying that growth should pay for growth, but then Mr. Matthews stood up and suggested subsidizing commercial growth. He asked who is to subsidize it; it is a matter of fairness. He said that Mr. Matthews has brought up the issue of slower growth and money not coming in. That is true when they have slower growth, but when they put in a new pipeline that has 500 lots, they will be paying for it over a longer period of time. He said that if they lower the impact fee, that will lower their income. f it is going to go slower they are going to have more interest, and if it takes longer, there will be more carrying costs, which means the impact fees should be higher per unit. The per unit cost will tend to go up when growth is lower. He said that the agreement was to meet in October; in one year they will start it over again. If people have suggestions, that is the time to do it. The only thing he heard today is a construction tax and he does not understand the difference. He said that the contractors do not go to the utility companies and ask them to subsidize their costs. He said that they cannot solve the financial problems around the country. He said that the impact fees are about 5% of their fees; if they cut them out completely, it will not make that much difference. Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 22 Mr. Matthews said that Mr. Mechanic was right about commercial impact fees, but what they are talking about in commercial impact fees is jobs. They are talking about the health of the community. If they do not have jobs in the community they will not have the retail and the tax it generates to for staff, cities and growth. It is an interlocking problem. Bill Kindig, 4866 Camanche Trail, said that when he spoke at the last meeting, he said all he has seen for the YCCa is delay, delay, and he forecasted that they would come back and ask for delay again. He said that Councilman Roecker was correct; he expected someone to come in and give a recommendation. That would have been a good starting point, but he has not seen it. John Danforth, 2737 Lookover Circle, said that he hears about the enormous increase in the commercial impact fee, and asked if that meant that they have not been paying their full fee. Mr. Jackson said that was correct. One of the findings of the study is that the impact fees on the larger meters were undercharged; the 5/8" is still 85-90%, but the larger meters take a lot of capacity and the new fees would recover those costs. M. Notice of Public Hearing (October 28) and consideration of a liquor license application from Clay William Romo, applicant for Clay Romo, LLC, for a Series 07, Beer and Wine Bar, license for Lloyd's Liquors located at 1102 West Iron Springs Road. Ms. Burke said that this and the next item (Item N) were notice of public hearings for liquor license applications for a Series 7 and Series 9 license at Lloyd's Liquors located at 1102 West Iron Springs. She said that the requests are needed because of change in ownership. She said that the property has been posted and the applicant has been asked to attend next week's public hearing. N. Notice of Public Hearing (October 28) and license application from Clay William Romo, LLC, for a Series 09, Liquor Store, license for 1102 West Iron Springs Road. O. Approval of the Minutes of the Prescott City Session/Regular Voting Meeting of October Session of October 21, 2008. consideration of a liquor applicant for Clay Romo, Lloyd's Liquors located at Council Combined Study 14, 2008 and the Study Prescott City Council Joint Special Meeting/ Study Session — October 21, 2008 Page 23 P. Selection of items to be placed on the Regular Voting Meeting Agenda of October 28, 2008. Councilwoman Suttles said that the following items would be on the Consent Agenda: A, B, C, D, E, I, O. The remainder, F, G, H, J, K, L, M, N would be under the regular agenda. III. ADJOURNMENT There being no further business to be discussed at the Study Session of the Prescott City Council held on October 21, 2008, the meeting was adjourned. JACK D. WILSON, Mayor ATTEST: ELIZABETH A. BURKE, City Clerk COUNCIL AGENDA MEMO — October 28, 2008 DEPARTMENT: Legal AGENDA ITEM: Approval of Contract for Legal Services in Brogdon v. City of Prescott Approved Bv: Date: Department Head: Gary D. Kidd, City Attorney 6, 1 L710/28/08 Finance Director: Mark Woodfill City Manager: Steve Norwood /O17o, g Background The Legal Department is seeking the approval of a contract for $50,000 for additional outside legal counsel services to be provided by local attorney, Jim Simmons. Mr. Simmons will serve as co -counsel at the trial of the case of Brogdon v. City of Prescott. The trial will occur over six days from November 4 -14, with recesses. The Legal Department originally entered into a $10,000 contract with Mr. Simmons for him to provide additional advice and evaluate the merits of settlements proposed during the mediation of this case. Because the City Council did not approve the proposed settlements, the case will proceed to trial. Because of the number of expert witnesses that the parties will have testify at trial, and the large volume of medical records to be reviewed and used as exhibits at trial, the Legal Department has sought an expanded role for Mr. Simmons as co - counsel at the trial. Mr. Simmons is an insurance defense and personal injury lawyer with considerable local jury experience in cases of this nature. He has been certified by the State Bar of Arizona as a personal injury specialist for a number of years. Mr. Simmons' expanded role as co -counsel at trial requires an additional $50,000 contract for his services in that role at trial. Fiscal Impact: Sufficient funds have been budgeted and exist in the Risk Management fund 15- 88500-413 for FY09 to provide for this contract. Recommended Action: MOVE to approve contract in the amount of $50,000 for legal services to be provided by Jim Simmons. 1 PRESCOTT CITY COUNCIL VOTING MEETING AGENDA *AMENDED PRESCOTT CITY COUNCIL VOTING MEETING TUESDAY, OCTOBER 28, 2008 3:00 P,M,___ Council Chambers 201 S. Cortez Street Prescott, AZ 86303 (928)_ 777-1100. The following Agenda will be considered by the Prescott City Council at its Regular Voting Meeting pursuant to the Prescott City Charter, Article II, Section 13. Notice of this meeting is given pursuant to Arizona Revised Statutes, Section 38-431.02. • CALL TO ORDER • INTRODUCTIONS • INVOCATION: Major Trimmer of the Salvation Army • PLEDGE OF ALLEGIANCE: Councilman Roecker will be introducing .Boy Scouts of America Pack 10 Cub Scouts: Luke Alder, Griffin Hays, Cole Kelley, Andrew Mull and Artie Joe Strom Dubord. • ROLL CALL: MAYOR AND CITY COUNCIL: Mayor Wilson Councilman Bell Councilman Lamerson Councilwoman Lopas Councilman Luzius Councilman Roecker Councilwoman Suttles • SUMMARY OF CURRENT OR RECENT EVENTS PUBLIC COMMENT (Please limit your comments to five minutes) A. Citizens Water Advocacy Group with presentation on when Prescott may need Big Chino Water. B. Presentation of Annual Report by Carlo Pastore, President of Prescott Frontier Days, Inc. Prescott City Council Regular Voting Meeting — October 28, 2008 Page 2 I1. PRESENTATIONS A. Introduction of new businesses. III. CONSENT AGENDA A. Approve disbursement to Habitat for Humanity in the amount of $49,999.99 in CDBG funding for the purchase of tools for the lending program. Adopt Resolution No. 3907-0913 — A resolution of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, authorizing the City of Prescott to enter into an Intergovernmental Agreement with Yavapai County for County provision of motor vehicle fuel for use in City vehicles, and authorizing the Mayor and staff to take any and all steps necessary to accomplish the above. C. Adopt Resolution No. 3909-0915 — A resolution of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, authorizing the City of Prescott to enter into an Intergovernmental Agreement and a Mutual Aid Compact Agreement with the Arizona Department of Emergency and Military Affairs for mutual assistance during emergencies, and authorizing the Mayor and staff to take any and all steps necessary to accomplish the above. D. Approve purchase crack sealant from Crafco, Inc., in a not -to -exceed amount of $60,000.00, through the ADOT's (Arizona Department of Transportation) contract. Approve purchase 95 front -loading containers from Action Container Solutions in the amount of $80,199.95. F. Adopt Ordinance No. 4672-0915 — An ordinance of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, authorizing the purchase of real properties, easements and improvements belonging to Douglas Heffner, Loren J. Ridley, James S. and Lucy Greeneich, and the acquisition of certain rights -of -way, drainage easements and temporary construction easements thereform for the widening of Williamson Valley Road, and authorizing the Mayor and City staff to take all necessary steps to effectuate said purchases. G. Approve Minutes of the Prescott City Council Combined Study Session/Regular Voting Meeting of October 14, 2008 and the Study Session of October 21, 2008. Prescott City Council Regular Voting Meeting — October 28, 2008 Page 3 IV. REGULAR AGENDA A. Public Hearing and consideration of a liquor license application from Clay William Romo, applicant for Clay Romo, LLC, for a Series 07, Beer and Wine Bar, license for Lloyd's Liquors located at 1102 West Iron Springs Road. B. Public Hearing and consideration of a liquor license application from Clay William Romo, applicant for Clay Romo, LLC, for a Series 09, Liquor Store, license for Lloyd's Liquors located at 1102 West Iron Springs Road. C. Award of a five-year contract to Fann Contracting, Inc., for hauling services in the amount of $12.79 per ton, with an amount not to exceed $805,770.00 per year. D. Award of bid to Fann Contracting, Inc. for the North Prescott Regional Force Main Replacement Project, along State Highway 89 from Lillian Lane to Willow Creek, in an amount not to exceed $4,081,000.00. E. Adoption of Ordinance No. 4673-0916 — An ordinance of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, vacating and abandoning certain municipal rights -of -way which consist of portions of Garden Street and an alley located west of and parallel to Grove Avenue south of Sheldon Street and sell and convey to Prescott College and authorizing the Mayor and City staff to take all necessary steps to effectuate such vacations and abandonments. F. Approval of a professional services agreement with J2 Engineering and Environmental Design for engineering services to update the FEMA flood plain determination of Granite Creek in an amount not to exceed $92,935.00 (reimbursed by Yavapai County Flood Control District). G. Approve Amendment One to City Contract #08-207 with Saguaro GeoServices, Inc., for professional engineering services for Lowe's retaining wall design review in the amount of $22,206.80 (reimbursed by Lowe's). Water and Sewer Development Fees: 1. Adoption of Water and Wastewater Capital Improvement Plans. 2. Adoption of Ordinance No. 4665-0908 — An ordinance of the Mayor and Council of the City of Prescott, Yavapai County, Arizona, amending Title II, Chapter 2-1 and Title III, Chapter 3-14, of the Prescott City Code, regarding the imposition of water and sewer development fees. Prescott City Council Regular Voting Meeting — October 28, 2008 Page 4 I. Approval of contract with Jim Simmons for legal services in Brogdon v. City of Prescott in the amount of $50,000.00. J. Recess into Executive Session. V. EXECUTIVE SESSION: A.* Discussion or consultation for legal advice with the attorney or attorneys of the public body and discussion- or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation, pursuant to A.R.S. §§38-431.03(A)(3) and (4). 1. Big Chino Water Ranch. A.B.* Discussion or consideration of employment, assignment, appointment, promotion, demotion, dismissal, salaries, disciplining or resignation of a public officer, appointee or employee of any public body, except that, with the exception of salary discussions, an officer, appointee or employee may demand that the discussion or consideration occur at a public meeting, pursuant to A.R.S. Section 38-431.03(A)(1). 1. Annual evaluation of City Clerk. VI. POST EXECUTIVE SESSION: A. Possible amendment to Employment Agreement with Elizabeth A. Burke. VII. ADJOURNMENT CERTIFICATION OF POSTING OF NOTICE The undersigned hereby certifies that a copy of the foregoing AMENDED notice was duly posted at Prescott City Hall on /0%27f02 at 7, ed �.m. in accordance with the statement filed by the Prescott City Council with( the City Clerk. lizabeth urke, City ar&A-4L--- ATE: IO - Z S -co ME: l: av pm t1/5E 1-4( F1corM,cr --tar\ W.) COUNCIL TYPE OF MEETING:' STUDY SESSION X COUNCIL MEETING WO,CKSttor ADDRESS ,elf, a63g3 (Z ( - 114 P, 04-sskiptiper ,\12 e6,7v� s0o MARam , 2 21 N. S+ 72 U 1 4Z S . agpr„a,) DATE: 10 -28-0ef CITY OF PRESCOTT COUNCIL STUDY SESSION TIME: 0'0 /2/6( REGULAR MEETING NAME SPECIAL MEETING ADDRESS '��f Lew74-4-te 3ys- he' d.w,�t.« k6T� —icerywni Lrhr) 491 (I( (born c 1V i+1\10 i�-1 $1rk " 6e3i6c,C C. III z S:(-°).) ,yoc-!), 3 RA. 3'4 �(b A(c)p�2 �5 1 ©coC A / v)c-\ e lc tr P, i-01:016 r pgc&t ef914k 4-1;04 13i/o ov, e (r` sko cite 2t� CITY OF PRESCOTT DATE: 10' 03/ TIME: ' 0'v p' ,tk NAME kJ._ CA -a 01 2)racK5 JP A -- COUNCIL STUDY SESSION REGULAR MEETING X SPECIAL MEETING ADDRESS p yq ` o 775 twin -E-- 1k r\ l.141c n 2c' 3I