Loading...
HomeMy WebLinkAboutCity Council - Regular Meeting - Jul 21, 2008 5HJXODU$GMRXUQHG0HHWLQJ1R±-XO\ 3OHGJHRI$OOHJLDQFH  $:LVKLQJWREHKHDUGGXULQJWKH2SHQ&RPPHQW3HULRGZDV$QWKRQ\'HYHUDX[ DWHGLPSURYHPHQWV  ' 5HJXODU$GMRXUQHG0HHWLQJ1R±-XO\ DJUHHPHQWVQHFHVVDU\IRUWKHVKDULQJRIWKHLQWHQGHGGDWDDOOVXEMHFWWRWKH&LW\ $WWRUQH\¶VUHYLHZDQGDSSURYDOIRUWKHH&KDUJLQJSLORWSURMHFW  '$SSURYHGWKHVWUHHWFORVLQJVIRU1DWLRQDO1LJKW2XWWREHKHOG$XJXVW  '$SSURYHGWKHIROORZLQJOLFHQVHVDQGPLVFHOODQHRXVFLW\SHUPLWV  *DPEOLQJ±7HPSRUDU\ 3KHDVDQWV)RUHYHU±7UL&RXQW\&KDSWHU±5DIIOHDWWKH5RFKHVWHU ,QWHUQDWLRQDO(YHQW&HQWHU±0DUFK 6(0&,/±5DIIOH±6HSWHPEHU  +HDWLQJ9HQWLODWLQJ $LU&RQGLWLRQLQJ 0LFKDHO-2¶&RQQRU0HFKDQLFDO$XVWLQ &RUSRUDWH0HFKDQLFDO,QF1HZ+RSH  /LTXRU±7HPSRUDU\ 01*,6/,6&RQVRUWLXP±5DGLVVRQ3OD]D+RWHO±2FWREHU  0DVWHU,QVWDOOHU 0LFKDHO-2¶&RQQRU,,,0LFKDHO-2¶&RQQRU0HFKDQLFDO$XVWLQ 0DUN+HQGULFNVRQ&RUSRUDWH0HFKDQLFDO,QF1HZ+RSH 3DWULFN2¶%ULHQ&RUSRUDWH0HFKDQLFDO,QF1HZ+RSH  0LVFHOODQHRXV 3DXO6FKQHLGHU±6RXWKHUQ+LOOV/DQH6:±SULYDWHVXPPHUSDUW\± $XJXVW±WR30 0D\R&OLQLF5HVSLUDWRU\&DUH3URJUDP±0HFKDQLFDO9HQWLODWRU.5XQ± &LYLF&HQWHU%LNH3DWK±6HSWHPEHU±WR30 0D\R&OLQLF'HSDUWPHQWRI/DE0HGLFLQH 3DWKRORJ\±)DPLO\3LFQLF± 0D\R3DUN±6HSWHPEHU±WR30 'HVWLQ\&KXUFK±'RZQWRZQ2XWUHDFK0LQLVWU\±3HDFH3OD]D±$XJXVW ±1RRQWR30 0LQQHVRWD0,/(±)LIWK$QQXDO.5XQ±6ROGLHUVILHOG3LFQLF$UHD±$XJXVW ±WR$0  6LGHZDON&DIp 5RFKHVWHU%HY)ORZ,QFGED0DUULRWW)LUVW$YHQXH6:  '6HHDWHQGRI',WHPV  '$FNQRZOHGJHGWKHDSSRLQWPHQWRI3ROLFH2IILFHU0LNH'UHHVWRWKHSRVLWLRQRI 3ROLFH6HUJHDQWLQWKH5RFKHVWHU3ROLFH'HSDUWPHQWHIIHFWLYH-XO\ 5HJXODU$GMRXUQHG0HHWLQJ1R±-XO\ '$FNQRZOHGJHGWKHWHPSRUDU\DSSRLQWPHQWRI3ROLFH2IILFHU5\DQ0DJQXVRQWRWKH SRVLWLRQRI3ROLFH6HUJHDQWLQWKH5RFKHVWHU3ROLFH'HSDUWPHQWHIIHFWLYH-XO\DIILFFRQWURODQGWKHSODFHPHQWRIWHPSRUDU\DOOZD\VWRS WK FRQWUROVLJQLQJDWWKH6WUHHW6(:DO0DUW6RXWKLQWHUVHFWLRQ  '$GRSWHG5HVROXWLRQ1RDSSURYLQJWKH5LYHU3ODFH$JUHHPHQWZLWK5LYHU %OXIIV&RRSHUDWLYHDW(OWRQ+LOOV  '6HHDWHQGRI',WHPV  ' 5HJXODU$GMRXUQHG0HHWLQJ1R±-XO\ '$GRSWHG5HVROXWLRQ1RHQWVLQGLFDWHZKDWFKDQJHVZHUH PDGH  &RXQFLOPHPEHUV1RZLFNLPRYHG0DUFRX[VHFRQGHGWRDGRSW$GRSWHG5HVROXWLRQ 1R 5HJXODU$GMRXUQHG0HHWLQJ1R±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±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±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±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¶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³WRJHWKHUZLWKV LGHZDONFRQVWUXFWLRQREOLJDWLRQVDVWREHIRXQGLQ WKHSHGHVWULDQDJUHHPHQW´  +DYLQJQRRQHIXUWKHUZLVKLQJWREHKHDUG3UHVLGHQW+DQVRQFORVHGWKHKHDULQJ  &RXQFLOPHPEHUV+UXVNDPRYHG1RZLFNLVHFRQGHGWRDGRSW)LQDO3ODW5 3/$7E\06,5//&WREHNQRZQDV:LOORZ&HQWHU6HFRQG6XEGLYLVLRQZLWK ILYHFRQGLWLRQVDQGWKHQRWHGFKDQJHWRFRQGLWLRQHDQGLQVWUXFWHGWKH&LW\ $WWRUQH\WRSUHSDUH)LQGLQJVRI)DFW&RQFOXVLRQVRI/DZDQG2UGHU$\HV 5HJXODU$GMRXUQHG0HHWLQJ1R±-XO\  DPHQGPHQW7KHDPHQGPHQWLVQHFHVVDU\IRULQWHUQDOFRQVLVWHQF\DQGFODULILFDWLRQ RIODQJXDJHLQFHUWDLQVXEVHFWLRQV  &RXQFLOPHPEHUV0DUFRX[PRYHG6Q\GHUVHFRQGHGWRWDEOH7H[W$PHQGPHQW LQLWLDWHGE\WKH5RFKHVWHU&LW\3ODQQLQJDQG=RQLQJ&RPPLVVLRQWRDPHQG VHFWLRQVRIWKH=RQLQJ2UGLQDQFHDQG/DQG'HYHORSPHQW0DQXDOWKDWUHJXODWH VLJQV$\HV 6RPHDUHDVKDYHEHHQLGHQWLILHGDQGWKHUHDUH SODQVWRDGGUHVVWKRVHDUHDV  -DQ7KURQGVRQ1RUWKZD\/DQHVWDWHGWKDWWKLVEXVLQHVVZDVDEDGILWIRUWKH QHLJKERUKRRGDQGWKHQHLJKERUKRRGGLGQ¶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¶WFDUHRQ6DWXUGD\QLJKWZKHQWKHPXVLFSOD\HG XQWLODQG\RXFRXOGKHDULWLQVLGHWKHKRPHV7KHUHZDVDSROLFHRIILFHULQWKH SDUNDQGKHFRXOGKHDUWKHPXVLFVWDQGLQJWKHUH$WZKDWSRLQWZLOOWKH&RXQFLOVD\ 5HJXODU$GMRXUQHG0HHWLQJ1R±-XO\ WKDWKHLVDSXEOLFQXLVDQFHDQGVKXWKLPGRZQ7KHUHLVQRFRQVHTXHQFHWRKLP +HGRHVQ¶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±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¶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±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¶WGRLW ULJKWDZD\GRHVQ¶WFKDQJHWKLQJV7KH&RXQFLOVKRXOGDOORZWKHOLFHQVHWRH[SLUH RQ-XO\,IWKHLQGLYLGXDOFRPHVEDFNZLWKDUHVWDXUDQWPRGHOUDWKHUWKDQDEDU PRGHOWKH&RXQFLOFRXOGFRQVLGHUWKHOLFHQVH  &RXQFLOPHPEHU0HDQVVWDWHGWKDWWKLVEXVLQHVVVHHPVWRVHUYHDQLFKHLQWKH FRPPXQLW\6KHZRXOGQRWOLNHWRVHHDEXVLQHVVSURKLELWHGIURPRSHUDWLQJ VXFFHVVIXOO\\HWLWVKRXOGQ¶WLQWHUIHUHZLWKWKHULJKWVRIQHLJKERUVIRUSHDFHDQG UHDVRQDEOHQHVVLQWKHLUFRPPXQLW\0U3RZHUVKDVLGHQWLILHGHLJKWLWHPVWROLPLW WKHVRXQG6KHZRXOGEHFRPIRUWDEOHZLWKH[WHQGLQJWKHOLTXRUOLFHQVHEH\RQGWKH -XO\GDWHDQGZRXOGVXJJHVWDGD\H[WHQVLRQ  &RXQFLOPHPEHU1RZLFNLVWDWHGWKDWWKHQHLJKERUVKDYHFRQVLVWHQWO\LQGLFDWHGWKH\ GRQ¶WZDQWWRSXW0U3RZHUVRXWRIEXVLQHVVHYHQWKRXJKWKH\KDYHFRPSODLQHG DERXWWKHQRLVH7KHUHZHUHVRPHPLVXQGHUVWDQGLQJVIURPWKHODVWPHHWLQJ UHJDUGLQJWKHGEOHYHODQGWKRVHPLVXQGHUVWDQGLQJDSSHDUWREHFOHDUHGXS 7KHSODQVWRJHWDUHVWDXUDQWDUHJRRG+RSHIXOO\WKHPHVVDJHKDVJRWWHQDFURVV WKDWWKHQHLJKERUVKDYHWREHSDUWRIWKHVROXWLRQDQG0U:HOKDYHQKDVDJUHHGWR ZRUNZLWKWKHP+HLVLQIDYRURIH[WHQGLQJWKHOLFHQVHDQGZRUNLQJRQWKH VROXWLRQVSXWIRUWK,ILWGRHVQ¶WZRUNRXWWKHQWKH&RXQFLOFDQWDNHIXUWKHUVWHSV  &RXQFLOPHPEHU+UXVNDH[SUHVVHGKLVGLVDSSRLQWPHQWWKDW0U3RZHUVGLGQRW DWWHQGWKHQHLJKERUKRRGPHHWLQJDVUHTXHVWHG7KDWOHWWKHQHLJKERUVGRZQDQG G LGQ¶WUHSUHVHQWKLPYHU\ZHOO:HDUHVHHLQJDORWRIH[FXVHVDQGQRWPXFKDFWLRQ +HZRXOGOLNHWRVHHDPHHWLQJZLWKWKHQHLJKERUVDWLPHOLQHDQGDFWLRQLWHPVRQ ZKDW0U3RZHUVLVJRLQJWRGRDQGKROGLQJKLPDFFRXQWDEOHWRWKDWWLPHOLQH  3UHVLGHQW+DQVRQDJUHHGWKDWQRWPHHWLQJZLWKWKHQHLJKERUVZDVYHU\ GLVDSSRLQWLQJ+HVXJJHVWHGWKDWQROLYHPXVLFEHDOORZHGXQWLOWKHQHLJKERUKRRG PHHWLQJLVKHOGZLWKDIDFLOLWDWRUDQGDUHSRUWJLYHQEDFNWRWKH&RXQFLOE\WKH IDFLOLWDWRU,QWRGD\¶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±-XO\ OHYHORIQRLVHDQGWKHLPSDFWXSRQQHLJKERUVZKRVKDOOSDUWLFLSDWHLQGLYLGXDOO\RU ZLWKDIDFLOLWDWRUWKHVHWWLQJVZLOOJXLGHIXWXUHQRLVHOHYHOVIRUWKLVHVWDEOLVKPHQW $\HV  1D\V  0RWLRQFDUULHG&RXQFLOPHPEHUV&DUUDQG+UXVNDYRWLQJQD\  &RXQFLOPHPEHUV0DUFRX[PRYHG0HDQVVHFRQGHGWRH[WHQGWKHRQVDOH H[FOXVLYHDQG6XQGD\OLTXRUOLFHQVHIRU:KLVNH\%RQHVWR1RRQRQ$XJXVW $\HV  1D\V  0RWLRQFDUULHG&RXQFLOPHPEHUV&DUUDQG+UXVND YRWLQJQD\  )&RXQFLOPHPEHUV+UXVNDPRYHG1RZLFNLVHFRQGHGWRDSSURYHWKHIROORZLQJ 6RXQG$PSOLILFDWLRQ5HTXHVWV  0D[LPXP$OOORZDEOH6RXQG3UHVVXUH/HYHO1R0RUH7KDQ'HFLEHOV 5RRNLHV6SRUWV*ULOO %DU±2XWGRRU&RQFHUW±$XJXVW±30 WR0LGQLJKW  :DLYHWKH0D[LPXP$OORZDEOH6RXQG3UHVVXUH8QWLO30 (SLOHSV\)RXQGDWLRQRI0LQQHVRWD±)XQGUDLVHUIRU(SLOHSV\)RXQGDWLRQRI 0LQQHVRWD±6LOYHU/DNH3DUN(DVW6KHOWHU±$XJXVW±WR30 'HVWLQ\&KXUFK±'RZQWRZQ2XWUHDFK0LQLVWU\±3HDFH3OD]D±$XJXVW ±1RRQWR30 0D\R&OLQLF'HSDUWPHQWRI/DE0HGLFLQH 3DWKRORJ\±)DPLO\3LFQLF± 0D\R3DUN±6HSWHPEHU±WR30 ,JOHVLD&ULVWLDQD8QD/X]D(Q7X&DPLQR±&KULVWLDQ(YDQJHOLVP&KXUFK 0DULRQ5RDG±-XO\±1RRQWR30 %DU *ULOO±(QWHUWDLQPHQW±$XJXVW±WR30 3DXO6FKQHLGHUKLJKVFKRROUHXQLRQ±6RXWKHUQ+LOOV/DQH6:± $XJXVW±WR30 2OPVWHG&RXQW\)DLU$*$VVRFLDWLRQ±-XO\WKURXJK$XJXVW  &RXQFLOPHPEHU0DUFRX[QRWHGKHUFRQFHUQZLWK5RRNLHVUHTXHVWIRUD6RXQG $PSOLILFDWLRQ3HUPLWXQWLO0LGQLJKW  3UHVLGHQW+DQVRQDOVRQRWHGWKDWWKH'HVWLQ\&KXUFKKDVUHTXHVWHGWKDWWKHLU 6RXQG$PSOLILFDWLRQ3HUPLWEHFKDQJHGIURP-XO\WR$XJXVW  $\HV HVWHUFRGHRI 2UGLQDQFHV5HODWLQJWR(QIRUFHPHQWRI3DUNLQJ=RQH7LPH/LPLWDWLRQVDJDLQVW 3K\VLFDOO\'LVDEOHG3DUNLQJZDVJLYHQDILUVWUHDGLQJ  *D$Q2UGLQDQFH$PHQGLQJDQG5HHQDFWLQJ&KDSWHURIWKH5RFKHVWHU&RGHRI 2UGLQDQFHV5HODWLQJWRWKH$GRSWLRQRIWKH,QWHUQDWLRQDO)LUH&RGHZDVJLYHQ DVHFRQGUHDGLQJ&RXQFLOPHPEHUV0DUFRX[PRYHG6Q\GHUVHFRQGHGWRDGRSW WKH2UGLQDQFHDVUHDG$\HV 5HJXODU$GMRXUQHG0HHWLQJ1R±-XO\ $\HV  1D\V  0RWLRQFDUULHG&RXQFLOPHPEHUV&DUU1RZLFNLDQG6Q\GHU YRWLQJQD\  WK &RXQFLOPHPEHUV0DUFRX[PRYHG+UXVNDVHFRQGHGWRUHDGRSWZLWKD FRQGLWLRQWRUHDGDVIROORZVWKHGHYHORSPHQWVKDOOEHUHGXFHGE\IRXUXQLWV 7KUHHWZREHGURRPXQLWVDQGRQHWKUHHEHGURRPXQLWRQWKHIRXUWKIORRURIWKH :DVKLQJWRQ9LOODJH(DVWEXLOGLQJVKDOOEHUHPRYHG7KHUHPRYDORIWKHVHXQLWV VKDOOGHFUHDVHWKHIORRUDUHDRIWKHEXLOGLQJDQGFKDQJHWKHEXLOGLQJHOHYDWLRQ  7KHFKDQJHZLOODOVRGHFUHDVHWKHSDUNLQJQHHGE\