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 6, 2013
5HJXODU0HHWLQJ1R±0D\ 3OHGJHRI$OOHJLDQFH $:LVKLQJWREHKHDUGZDV%DUEDUD8SWRQ0V8SWRQUHDGH[FHUSWVIURPDUWLFOHVVKH KDGZULWWHQDQGVSRNHDERXWWKH*RRG)RRGV6WRUH %$FWLQJ3UHVLGHQW5DQG\6WDYHUFDOOHGWKHPHHWLQJWRRUGHUDWLWHPV '6HHDWHQGRI'LWHPV '6HHDWHQGRI'LWHPV '6HHDWHQGRI'LWHPV '$SSURYHGWKHDSSOLFDWLRQVIRUWUDQVIHURIRZQHUVKLSIURP&KHQJ'RQJWR<X<DQ *DRDQG4LDR/LQJ'RQJIRU3HUFHQW0DOW/LTXRUDQG:LQH/LFHQVHVWKH 5HJXODU0HHWLQJ1R±0D\ .LQJGRP%XIIHW5RFKHVWHU,QFGED.LQJGRP%XIIHWDW 1RUWK%URDGZD\ ' ,PSURYHPHQWV´ WR%OLW]&RQVWUXFWLRQLQWKHDPRXQWRI 5HJXODU0HHWLQJ1R±0D\ ' $GRSWHG5HVROXWLRQ1R DSSURYLQJDQ(QJLQHHULQJ6HUYLFHV$JUHHPHQWZLWK :+.6 &RPSDQ\WRSURYLGHGHVLJQHQJLQHHULQJVHUYLFHVIRU3URMHFW1R0 WK - ³ 6WUHHW1(6WRUP6HZHU(QHUJ\'LVVLSDWLRQ0DQKROG´DWWKH³$FWXDO &RVW´EDVHGRQWKHH[SHQVHIHHVWUXFWXUHZLWKD³1RWWR([FHHG´DPRXQWRI UV//&IRU&KLS6HDO6WUHHW 5HKDELOLWDWLRQPDWHULDOV ' 5HJXODU0HHWLQJ1R±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±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³REYLRXVO\LQWR[LFDWHGSHUVRQ´&DSWDLQ6KHUZLQ VWDWHGWKHVXJJHVWLRQVPDGHDUHDOUHDG\FRYHUHGE\6WDWH6WDWXWHDQGDOOOLTXRU HVWDEOLVKPHQWVDUHDOUHDG\JRYHUQHGE\WKLV6WDWXWH &RXQFLOPHPEHUV+UXVNDPRYHG%LOGHUEDFNVHFRQGHGWRDSSURYHWKHUHTXLUHPHQW RIDVHFXULW\SODQIRU2Q6DOH([FOXVLYH,QWR[LFDWLQJ/LTXRU/LFHQVHVLQSODFHE\WKH WLPHRIUHQHZDORIWKHLUOLTXRUOLFHQVHVRQ$SULODQGDSSURYHGDQ DPHQGPHQWWR5&2$6XEG2 WRUHTXLUHDVHFXULW\SODQUHYLHZE\WKH 3ROLFH'HSDUWPHQWZLWKWKHEXVLQHVVSODQDWWKHWLPHRIDSSOLFDWLRQ$\HV 1D\V 0RWLRQFDUULHG ' 5HJXODU0HHWLQJ1R±0D\ *ROI&DUWV &KDUOHV2¶&RQQHOO(LJKWK$YHQXH6( 0LFKDHO0DEELWW 5HJXODU0HHWLQJ1R±0D\ - 5HJXODU0HHWLQJ1R±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±0D\ WK UHVLGHQWLDOGLVWULFWEXWLQVWHDGVKRXOGEHORFDWHGZKHUHWKH6WUHHWUHVHUYRLUVLWH FXUUHQWO\H[LVWV7KLVLVWKHOHDVWLQWUXVLYHDQGPRVWHDVLO\DFFHVVLEOHVLWHDYDLODEOH 0U/XQGVDLG6W0DU\¶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¶VVSLULWRIJRRGVHUYLFHWRWKHQHLJKERUVRU YLVLWRUVWRWKH&LW\LIDOORZHGWRSURFHHG0V*LOOLODQGDVNHGWKH&RXQFLOWRSURWHFW WKHEHVWLQWHUHVWVRIWKHFRUHQHLJKERUKRRGVWHPSHUGRZQWRZQEXVLQHVVLQWHUHVWV DQGWKH0D\R&OLQLFDQGGHQ\538¶V]RQLQJYDULDQFHEHFDXVHVKHGRHVQRWIHHO WKLVPHHWVWKHIROORZLQJFULWHULD WKHSURSRVHGWDQNGRHVQRWPHHW5]RQLQJ UHTXLUHPHQWVIRUWKHQHLJKERUKRRGGRHVQRWPHHWWKHPLQLPXPVHWEDFNVHTXDOWR LWVKHLJKWGRHVQRWPHHWWKHPD[LPXPKHLJKWUHVWULFWLRQLVQRWDORFDWLRQ FRPSURPLVHEHWZHHQWKHQHLJKERUKRRGDQG5RFKHVWHU3XEOLF8WLOLWLHVWKHODQG RZQHU0D\R&OLQLFKDVQRWPHWZLWKWKHQHLJKERUKRRGWKLVSURMHFWWLVQRWEHLQJD JRRGQHLJKERULVQRWDSSURSULDWHWREXLOGWKH&LW\¶VODUJHVWZDWHUVW RUDJHVWUXFWXUH WRGDWHPHUHIHHWIURPKRPHVGRHVQRWIHHO538KDVH[KDXVWHGDOORWKHURSWLRQV DQGZLOOQRWEHKLGGHQEHKLQGWUHHV6KHIHHOVWKLVZLOOQHJDWLYHO\LPSDFWWKH DHVWKHWLF VRIWKLVKLOOVLGH6W0DU\¶V3DUNDQGRXU&LW\6KHIHHOVWKHUHDUHVDIHW\ DQGVHFXULW\LVVXHVDVVRFLDWHGZLWKWKLVORFDWLRQDQGWKLVSURMHFWLVQRWVHQVLWLYHWR WKHKLVWRULFGLVWULFWLWLVDGMDFHQWWR :LVKLQJWREHKHDUGZDV-RKQ.UXHVHO0U.UXHVHOFRPSOLPHQWHG0V*LOOLODQGRQ KHUSUHVHQWDWLRQ+HVWDWHGLWLVQHFHVVDU\WRSURWHFWRXUQHLJKERUKRRGVDQGRXU SDUNVVRWKH\GRQ¶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±0D\ 7KH3ODQQLQJVWDII¶VDVVHUWLRQWKDWWKHH[LVWHQFHRIWKHOHDVHDJUHHPHQWF RQVWLWXWHV WKHXQLTXHFLUFXPVWDQFHGRHVQRWDGGUHVVWKHFRQGLWLRQVOLVWHGIRUDYDULDQFH 538¶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¶WUDQVIHURISURSHUW\:KHQWKH6W0DU\¶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±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¶RSLQLRQ V DQGWKHLUULJKWVWRYRLFHWKHLUFRQFHUQVDERXWWKHSURMHFW7KH\GREHOLHYH KRZHYHUWKDWZKLOHWKLVLVQRWWKHRQ O\VLWHLQWKH&LW\WKDWZRXOGZRUN538¶V HQJLQHHUVKDYHFRQFOXGHGWKDWWKLVLVWKHEHVWVLWH0U*RGZLQDVNHGWKH&RXQFLO WRDSSURYHWKH=RQLQJ%RDUGRI$SSHDOV¶GHFLVLRQEDVHGRQVWDIIUHFRPPHQGDWLRQV WKDWWKHYDULDQFHVKRXOGEHJUDQWHGDQGWRSXWWKHZDWHUDQGILUHVDIHW\QHHGVRI WKHHQWLUHDUHDDKHDGRIWKHDHVWKHWLFVVHQVLELOLWLHVRIDVPDOOJURXS 5HJXODU0HHWLQJ1R±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¶VFRPPHQWV0U 5HJXODU0HHWLQJ1R±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¶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¶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±0D\ VLPLODUVLJQVZKLFKSRVVLEO\LPSDFWUHVLGHQFHV,QDGGLWLRQLQUHJDUGVWRWKH RZQHUVKLSRIWKHSURSHUW\ZKHUHWKHVLJQLVWREHSODFHG+RO\&URVVKDVEHHQD PHPEHURIWKH5RFKHVWHU&HQWUDO/XWKHUDQ6FKRRO$VVRFLDWLRQVLQFH DQG PHPEHUVKLSLQWKH$VVRFLDWLRQUHVXOWVLQSURSHUW\ULJKWVDFFRUGLQJWRWKH$UWLFOHVRI ,QFRUSRUDWLRQDQGLWV%\/DZV7KHSDUFHORIODQGZKHUHWKHVLJQLVWREHSODFHGLV GHVLJQDWHGDVWKHSDUN7KH5RFKHVWHU3DUNDQG5HFUHDWLRQ'HSDUWPHQWXWLOL]HV WKLVSDUNIRUEDVHEDOOGLDPRQGVDQGWHQQLVFRXUWV3DVWRU6FKDXGHUVWDWHG+RO\ &URVVKDVDKLVWRU\RIZRUNLQJZLWKWKHFRPPXQLW\WRSURYLGHVRPHWKLQJSRVLWLYHE\ DOORZLQJWKHFRPPXQLW\WRXVHWKLVSDUN :LVKLQJWREHKHDUGZDV&KDUOHVBBBBBBBBBBRI6FKDG7UDF\6LJQV0U BBBBBBBBBYHULILHGWKH&RXQFLOUHFHLYHGWKHSDFNHWVWKDWFRPSDUHGRWKHU SURSHUWLHVLQWRZQDQGFRPSDUHGWKHVL]HRIWKHH[LVWLQJVLJQ0UBBBBBBBBBBB VWDWHGWKHLUGHVLUHLVWRXSJUDGHDKH QH[W&RXQFLO0HHWLQJRQ0D\$\HV 1D\V 0RWLRQFDUULHG ($&RQWLQXHG+HDULQJRQ)LQDO3ODW53/$7WREHNQRZQDV+DZN5LGJH )LUVW5HSODWE\+DZN5LGJH'HYHORSPHQW7KH3ODWSURSRVHVWRUHSODWSDUWVRI %ORFNVDQG+DZN5LGJHLQWR 5HJXODU0HHWLQJ1R±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±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¶WWKH\ KDYHWKHWZRSDUNLQJVSRWVSHUXQLW0U0F*XLUHDOVRDVNHGZKDWJRRGLWLVWR KDYHDFRUHQHLJKERUKRRGSODQLIQRRQHLVJRLQJWRXVHLW0U0F*XLUHVWDWHGWKH\ ZRXOGXVHWKHSODQLIWKHSDUNLQJUHTXLUHPHQWZHUHFKDQJHG &RXQFLOPHPEHU:RMFLNVWDWHGKHUHSUHVHQWVILYHQHLJKERUKRRGVWKDWDUHVXSSRUWLYH RIWKLVFKDQJHDQGDUHLQWHUHVWHGLQKDYLQJLWLQWKHLUQHLJKERUKRRG0U:RMFLN VWDWHGWKLVLVQRWEHLQJDSSOLHGWR0U0F*XLUH¶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±0D\ KHDULQJ $FWLQJ3UHVLGHQW6WDYHUVWDWHGKHKDVFRQFHUQZLWKXQLQWHQGHGFRQVHTXHQFHVLID QHLJKERUKRRGILQGVDVSHFWVRIWKHQHZ]RQLQJDSSHDOLQJEXWWKHQWKHSDUNLQJGRHV QRWZRUNRXW0U6WDYHUVWDWHGFDXWLRQQHHGVWREHXVHGZKHQDSSURYLQJWKLV &RXQFLOPHPEHU%LOGHUEDFNVWDWHGKHLVLQIDYRURIDGGLQJDQRWKHU]RQLQJGLVWULFW WKDWZRXOGDGGDQRWKHUSDUNLQJVSDFHDVUHFRPPHQGHGE\0U(OOHUEXVFK &RXQFLOPHPEHU:RMFLNVWDWHGWKLVLVDERXWFUHDWLQJD]RQLQJFRGHWKDWKDVEHHQD ZRUNLQSURJUHVVIRU3ULRU$SSURYDOV 6WDYHU:RMFLN6Q\GHU+UXVND 6WD\2XWRIWKH6XQ)XQ5XQ±+RO\6SLULW&DWKROLF&KXUFK±0D\ 5HJXODU0HHWLQJ1R±0D\ ±1RRQWR0LGQLJKW &LW\RI-R\.±6ROGLHU¶V)LHOG7UDLOV±0D\± WR 30 :KLVWOH%LQNLHVRQWKH/DNH6XPPHU0XVLF6HULHV±7KXUVGD\)ULGD\ 6DWXUGD\-XQHWKURXJK6HSWHPEHU :KLVWOH%LQNLHV2OGH:RUOG3XE±-XQH±1RRQWR 30 :DLYH0D[LPXP$OORZDEOH6RXQG3UHVVXUH8QWLO 30 (GZDUG+DFNHU(YDQJHOLVP±3XEOLF6WUHHWV'RZQWRZQ±WKURXJKRXWWKH \HDU± WR 30 &URKQ¶V &ROLWLV)RXQGDWLRQ±6LOYHU/DNH3DUN(DVW±0D\± WR 30 6DWXUGD\1LJKW&LQHPD±3HDFH3OD]D±6DWXUGD\1LJKWV±0D\WR 6HSWHPEHU 5RFKHVWHU&LYLF7KHDWUH±0D\WKURXJK2FWREHU±(YHQWVRQWKH3DWLR 6W*HRUJH(WKLRSLDQ2UWKRGR[7HZDKLGR&KXUFK±0D\ ± $0WR 30 ,0$$:DON$URXQGWKH:RUOG±3HDFH3OD]D:HVW6LGH±-XQH± 1RRQWR 30 $\HV 1D\V 0RWLRQFDUULHG )6HHDWHQGRI'LWHPV *D *E $Q2UGLQDQFH$PHQGLQJDQG5HHQDFWLQJ3DUDJUDSKRI&ODXVH2RI6XEGLYLVLRQ RI6HFWLRQ$RIWKH5RFKHVWHU&RGHRI2UGLQDQFHV5HODWLQJWRD6HFXULW\ 3ODQ5HTXLUHPHQWIRU2QVDOH([FOXVLYH/LTXRU/LFHQVHHV $Q2UGLQDQFH$PHQGLQJDQG5HHQDFWLQJWKH7LWOHRI&KDSWHU6HFWLRQ6HFWLRQV 5HJXODU0HHWLQJ1R±0D\ &RXQFLOPHPEHU%LOGHUEDFNUHTXHVWHGWRPDNHDQDPHQGPHQWWR %+RXUVRI 2SHUDWLRQZLOOEHDPWRSPZLWKDQRSSRUWXQLW\WRDVNIRUYDULDQFHIRU IXQGUDLVHURSSRUWXQLWLHV,IDOFRKROLVVHUYHGDOOULGHUVPXVWEHRIDJH$OOULGHUV ZLOOKDYHDUPEDQGVDQG,'¶VFKHFNHGE\WKH3HGDO3X EVWDII$OOULGHUVPXVWVLJQD &RGHRI&RQGXFWIRUPQRWRQO\IRUWKHULGHEXWIRUKRZWKH\DUHH[SHFWHGWREHKDYH DWWKHLUVWRSV$OOULGHUVPXVWVLJQDQ,QVXUDQFH:DLYHU$OOULGHUVPXVWZULWHRXW DQGVLJQDZDLYHURQUHIXVLQJWRZHDUDKHOPHW7KH3HGDO3XEZLOOSURYLGHFRROHUV DQGZDWFKWKHPEHLQJORDGHG,IDSHUVRQLVDVNHGWRJHWRIIWKH3HGDO3XEIRU EHKDYLRULVVXHVWKH3HGDO3XEZLOOFDOOIRUDFDERUWKHSROLFH0XVLFZLOOEH FRQWUROOHGE\WKHRSHUDWRURIWKH3HGDO3XE$OOWKHSODFHVWKH3HGDO3XEVWRSV PXVWILOORXWDIRUPVWDWLQJWKH\ZRXOGOLNHWREHDVWRS &RXQFLOPHPEHUV%LOGHUEDFNPRYHG6Q\GHUVHFRQGHGWRDFFHSWWKHDPHQGPHQWV DVUHDGE\&RXQFLOPHPEHU%LOGHUEDFN$\HV 1D\V 0RWLRQFDUULHG *D$Q2UGLQDQFH&UHDWLQJDQG(QDFWLQJ&KDSWHU %RIWKH5RFKHVWHU&RGHRI 2UGLQDQFHV5HODWLQJWRWKH(VWDEOLVKPHQWRI&RPPHUFLDO3HGDO&DU7UDQVSRUWDWLRQ %XVLQHVV)UDQFKLVHVDVDPHQGHG&RXQFLOPHPEHUV+UXVNDPRYHG6Q\GHU VHFRQGHGWRDGRSWWKH2UGLQDQFHDVUHDG$\HV 1D\V 0RWLRQFDUULHG &RXQFLOPHPEHU0HDQVYRWHGQD\ *E$Q2UGLQDQFH&UHDWLQJDQG(QDFWLQJ6HFWLRQ %RIWKH5RFKHVWHU&RGHRI 2UGLQDQFHV5HODWLQJWRWKH*UDQWLQJRID&RPPHUFLDO3HGDO&DU7UDQVSRUWDWLRQ %XVLQHVV)UDQFKLVHWR3HGDO3XE//&&RXQFLOPHPEHUV%LOGHUEDFNPRYHG 6Q\GHUVHFRQGHGWRDGRSWWKH2UGLQDQFHDVUHDG$\HV 1D\V 0RWLRQ FDUULHG&RXQFLOPHPEHU0HDQVYRWHGQD\ ,7KHIROORZLQJLVDVXPPDU\RIWKH3HGDO&DU7UDQVSRUWDWLRQ%XVLQHVV)UDQFKLVH 2UGLQDQFHDVDGRSWHGE\WKH5RFKHVWHU&RPPRQ&RXQFLORQ0D\DQGLV SXEOLVKHGSXUVXDQWWR6HFWLRQU+RPH5XOH&KDUWHULQ6HFWLRQ $6XEGLYLVLRQRIWKH0LQQHVRWD6WDWXWHV7KH5RFKHVWHU&RPPRQ &RXQFLODSSURYHGWKHSXEOLFDWLRQRIWKLV2UGLQDQFH6XPPDU\DWLWV0D\ PHHWLQJ$FRS\RIWKLV2UGLQDQFHLVRQILOHDW2IILFHRI&LW\&OHUN)RXUWK 6WUHHW6RXWKHDVW5RRP5RFKHVWHU0LQQHVRWDDQGDWWKH5RFKHVWHU3XEOLF QG /LEUDU\6WUHHW6RXWKHDVW5RFKHVWHU0LQQHVRWD7KLV2UGLQDQFH HVWDEOLVKHVDQHZFDWHJRU\RIIUDQFKLVHHQWLWOHG&RPPHUFLDO3HGDO&DU 7UDQVSRUWDWLRQ%XVLQHVV)UDQFKLVHVDQGSURYLGHVUHJXODWLRQVIRUSHGDOFDU IUDQFKLVHV&RXQFLOPHPEHUV6Q\GHUPRYHG%LOGHUEDFNVHFRQGHGWRDGRSWWKH 2UGLQDQFHDVUHDG$\HV 1D\V 0RWLRQFDUULHG -+DYLQJQRIXUWKHUEXVLQHVV&RXQFLOPHPEHUVBBBBBBBBBBBPRYHGBBBBBBBBBBB WK VHFRQGHGWRUHFHVVWKHPHHWLQJWR0D\ DW 30LQWKH&LW\&OHUN¶V2IILFHIRU WKHSXUSRVHRIFDQYDVVLQJWKH6SHFLDO&LW\*HQHUDO(OHFWLRQKHOGRQ0D\ 5HJXODU0HHWLQJ1R±0D\ 'HSXW\&LW\&OHUN