Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
City Council - Regular Meeting - May 18, 2015
)LQDO 5HJXODU$GMRXUQHG0HHWLQJ0D\ &,7<2)52&+(67(50,11(627$ &281&,/0,187(6 3/('*(2)$//(*,$1&( $23(1&200(173(5,2' $2SHQ&RPPHQW3HULRG 1RRQHZLVKHGWRFRPPHQW %&$//7225'(5 $WWHQGHH1DPH7LWOH6WDWXV$UULYHG 5DQG\6WDYHU3UHVHQW 1LFN&DPSLRQ3UHVHQW (G+UXVND3UHVHQW 0DUN%LOGHUEDFN3UHVHQW 0LFKDHO:RMFLN3UHVHQW 0DUN+LFNH\3UHVHQW 6DQGUD0HDQV3UHVHQW $UGHOO)%UHGH0D\RU3UHVHQW &/(77(56$1'3(7,7,216 &3UHVHQWDWLRQRIWKHWK6WUHHW6(%ULGJH3ODTXH 0D\RU%UHGHSUHVHQWHGWKHSODTXHIURPWKHIRUPHUWK6W6(EULGJHWR+DUROG 'HYULHVIRUPHU&LW\&RXQFLO3UHVLGHQWZKRZDV&RXQFLO3UHVLGHQWZKHQWKHEULGJH ZDVFRQVWUXFWHG '&216(17$*(1'$25*$1,=$7,21$/%86,1(66 5(68/7 $'237('>81$1,0286@ 029(5 1LFN&DPSLRQ 6(&21'(5 0DUN%LOGHUEDFN $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV '$SSURYDORI&RQVHQW$JHQGD,WHPV $SSURYHG&RQVHQW$JHQGDLWHPV' '$SSURYDORI0D\&RXQFLO0HHWLQJ0LQXWHV '5HYRFDWLRQRIUHYRFDEOHSHUPLW $GRSWHG5HVROXWLRQ1RDSSURYLQJWKHUHYRFDWLRQRIUHYRFDEOHSHUPLW UHODWHGWRWKH%URDGZD\DW&HQWHU 5HVROXWLRQ1R ORFDWHGDW 6RXWK%URDGZD\ '6XSSRUW5HVROXWLRQIRUSURSRVHG+RXVLQJ7D[&UHGLW3URMHFW $GRSWHG5HVROXWLRQ1RVXSSRUWLQJWKH+RXVLQJ7D[&UHGLW3URMHFW VXEPLWWHGE\0+)$RQEHKDOIRI7LWDQ'HYHORSPHQW ,QYHVWPHQWVUHJDUGLQJ 1RUWKJDWH3OD]DORFDWHGDW WK$YHQXH1: 5HJXODU$GMRXUQHG0HHWLQJ0D\ '$SSURYDORI6XPPDU\RI)R[+LOO9LOODV6SHFLDO'LVWULFW2UGLQDQFH $GRSWHG5HVROXWLRQ1RDSSURYLQJWKH6XPPDU\RI)R[+LOO9LOODV6SHFLDO 'LVWULFW2UGLQDQFH '6XQGD\*URZOHU6DOHV2UGLQDQFH8SGDWH $SSURYHGWKHSURSRVHG2UGLQDQFHUHODWLQJWR6XQGD\*URZOHU6DOHVDQGLQVWUXFWHG WKH&LW\$WWRUQH\WRSUHSDUHWKHUHTXLUHG2UGLQDQFH ' 5HJXODU$GMRXUQHG0HHWLQJ0D\ 5RFKHVWHU&RPPLWWHH7HPSRUDU\2Q6DOH/LTXRU 7KXUVGD\-XQHWK 1RRQ(QWHUWDLQPHQW6RXQG$PSOLILFDWLRQ +DSS\+RXU0XVLF.DUDRNH1LJKW6RXQG$PSOLILFDWLRQ 5RFKHVWHUIHVW&RPPLWWHH7HPSRUDU\2Q6DOH/LTXRU )ULGD\-XQHWK 1RRQ(QWHUWDLQPHQW6RXQG$PSOLILFDWLRQ *UDQG3DUDGH6RXQG$PSOLILFDWLRQ &RXQWU\1LJKW6RXQG$PSOLILFDWLRQ 5RFKHVWHUIHVW&RPPLWWHH7HPSRUDU\2Q6DOH/LTXRU 6DWXUGD\-XQH 5HJXODU$GMRXUQHG0HHWLQJ0D\ 676:IURP 5HJXODU$GMRXUQHG0HHWLQJ0D\ 5&7&DW:LOORZ&UHHN*ROI&RXUVH 5HJXODU$GMRXUQHG0HHWLQJ0D\ '$FFRXQWV3D\DEOHIRU0D\ $SSURYHGWKH$FFRXQW3D\DEOHLQWKHDPRXQWRI\DQGGUDLQDJHHDVHPHQWLQ/RW %ORFN5LFKPRQG&RPPHUFLDO&HQWHU '2ZQHU&RQWUDFW3XEOLF,PSURYHPHQWVWR6HUYH+DZWKRUQ0HDGRZV6XEGLYLVLRQ H[FOXGLQJ2XWORW $ - $GRSWHG5HVROXWLRQ1RH[HFXWLQJWKH&LW\2ZQHUFRQWUDFWIRU3URMHFW1R - 3XEOLF,PSURYHPHQWVWRVHUYH+DZWKRUQ0HDGRZV6XEGLYLVLRQZLWK+0 'HYHORSPHQW//&6KRUW(OOLRW+HQGULFNVRQ,QFDQG(OFRU&RQVWUXFWLRQ '6HSWLF6\VWHP5HSODFHPHQW8WLOLW\&RQQHFWLRQ$JUHHPHQW±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